MAHINDRA & MAHINDRA LIMITED

Notice

THE SEVENTIETH ANNUAL GENERAL MEETING OF MAHINDRA 6. 

To consider and, if thought fit, to pass the following as a
& MAHINDRA LIMITED will be held on Wednesday, the Special Resolution:
10 th day of August, 2016 at 3.00 p.m. at Birla Matushri “RESOLVED that pursuant to the provisions of sections 42
Sabhagar, 19, Sir Vithaldas Thackersey Marg (New Marine Lines), and 71 of the Companies Act, 2013 (the Act) read with the
Mumbai - 400 020 to transact the following businesses: Companies (Prospectus and Allotment of Securities) Rules,
2014 and all other applicable provisions of the Act and the
ORDINARY BUSINESS Rules framed thereunder, as may be applicable, and other
1. 
To receive, consider and adopt the Audited Financial applicable Guidelines and Regulations issued by the Securities
Statement (including Audited Consolidated Financial and Exchange Board of India (SEBI) or any other law for the
Statement) of the Company for the Financial Year ended time being in force (including any statutory modification(s)
31st March, 2016 and the Reports of the Board of Directors or amendment(s) thereto or re-enactment(s) thereof for
and Auditors thereon. the time being in force) and in terms of the Articles of
Association of the Company, approval of the Members of the
2. To declare a dividend on Ordinary (Equity) Shares. Company be accorded to authorise the Board of Directors of
the Company (hereinafter referred to as “the Board” which
3. 
To appoint a Director in place of Mr. S. B. Mainak term shall be deemed to include any Committee thereof)
(DIN:02531129), who retires by rotation and, being eligible, to borrow from time to time, by way of securities including
offers himself for re-appointment. but not limited to secured/unsecured redeemable Non-
Convertible Debentures (NCDs) and/or Commercial Paper
4. 
To consider and, if thought fit, to pass the following as an
(CP) to be issued under Private Placement basis, in Domestic
Ordinary Resolution:
and/or International market, in one or more series/tranches

“RESOLVED that pursuant to section 139 and other aggregating upto an amount not exceeding Rs. 5,000 crores
applicable provisions, if any, of the Companies Act, 2013 (Rupees Five Thousand Crores only), issuable/redeemable at
and the Rules framed thereunder and pursuant to the discount/par/premium, under one or more shelf disclosure
recommendation of the Audit Committee and the Board documents, during the period of 1 (one) year from the date
of Directors and pursuant to the approval of the Members of this Annual General Meeting, on such terms and conditions
at the Sixty-Eighth Annual General Meeting, the Company as the Board may, from time to time, determine and consider
hereby ratifies the appointment of Messrs Deloitte Haskins proper and most beneficial to the Company including as to
& Sells, Chartered Accountants (ICAI Firm Registration when the said NCDs and/or CP be issued, the consideration
Number 117364W) as Auditors of the Company to hold for the issue, utilisation of the issue proceeds and all matters
office until the conclusion of the Seventy-First Annual connected with or incidental thereto; provided that the
General Meeting of the Company to be held in the year said borrowing shall be within the overall borrowing limits
2017, at a remuneration to be determined by the Board of the Company.
of Directors of the Company in addition to out of pocket
expenses as may be incurred by them during the course of FURTHER RESOLVED that approval of the Company be
the Audit.” accorded to the Board of Directors of the Company
(including any Committee thereof) to do all such acts,
deeds, matters and things and to take all such steps as
SPECIAL BUSINESS may be required in this connection including seeking all
5.  o consider and, if thought fit, to pass the following as an
T necessary approvals to give effect to this Resolution and to
Ordinary Resolution: settle any questions, difficulties or doubts that may arise in
this regard.”
“RESOLVED that pursuant to the provisions of section 148
and other applicable provisions, if any, of the Companies 7. 
To consider and, if thought fit, to pass the following as a
Act, 2013 and the Companies (Audit and Auditors) Special Resolution:
Rules, 2014 (including any statutory modification(s) or “RESOLVED that in supersession of the Resolution passed by
amendment(s) thereto or re-enactment(s) thereof, for the the Shareholders at the 63rd Annual General Meeting of the
time being in force) and pursuant to the recommendation Company held on 30 th July, 2009, and pursuant to provisions
of the Audit Committee, the remuneration payable to of section 94 of the Companies Act, 2013 (the Act) and the
Messrs D. C. Dave & Co., Cost Accountants having Firm Rules made thereunder, and the Registrar of Companies
Registration Number 000611, appointed by the Board of having been given in advance a copy of this proposed Special
Directors of the Company as Cost Auditors to conduct Resolution, the consent of the Members be accorded to the
the audit of the cost records of the Company for the Board of Directors of the Company for keeping the Register
Financial Year ending 31st March, 2017, amounting to of Members together with the Index of Members, Register
Rs. 7,50,000 (Rupees Seven Lakhs Fifty Thousand only) of Debenture Holders and other security holders, if any,
(excluding all taxes and reimbursement of out of pocket together with the Index of Debenture Holders and other
expenses) be ratified and confirmed. security holders, if any, under section 88 of the Act, and
FURTHER RESOLVED that approval of the Company be copies of the Annual Returns under section 92 of the Act at
accorded to the Board of Directors of the Company the office premises of the Company’s new Registrar & Share
(including any Committee thereof) to do all such acts, Transfer Agents viz. Karvy Computershare Private Limited
deeds, matters and things and to take all such steps as (R&T Agents) at 24 B, Rajabahadur Mansion, Ground Floor,
may be required in this connection including seeking all Ambalal Doshi Marg, Mumbai, Maharashtra 400023 and/or
necessary approvals to give effect to this Resolution and to at such places within Mumbai where the R&T Agents may
settle any questions, difficulties or doubts that may arise in have their office from time to time and/or at the Registered
this regard.” Office of the Company at Gateway Building, Apollo Bunder,

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MAHINDRA & MAHINDRA LIMITED

Mumbai – 400 001 and/or at the Company’s Corporate to be transferred to the Investor Education and Protection
Office at Mahindra Towers, Dr. G. M. Bhosale Marg, P. K. Fund (IEPF) administered by the Central Government. An
Kurne Chowk, Worli, Mumbai – 400 018. amount of Rs. 86,39,413 being unclaimed/unpaid dividend
FURTHER RESOLVED that approval of the Company be of the Company for the financial year ended 31st March,
accorded to the Board of Directors of the Company 2008 was transferred in September, 2015 to IEPF.
(including any Committee thereof) to do all such acts, Last date of transferring unclaimed and unpaid dividends
deeds, matters and things and to take all such steps as declared by the Company for the financial year 2008-09 and
may be required in this connection including seeking all thereafter to IEPF is as under:
necessary approvals to give effect to this Resolution and to
settle any questions, difficulties or doubts that may arise in Financial Year Date of Last date for claiming
this regard.” ended declaration of unpaid/unclaimed
dividend dividend
Notes: 31st March, 2009 30 th July, 2009 30 th August, 2016
A. The Explanatory Statement as required under section 102 31 March, 2010
st
28 July, 2010
th
26th August, 2017
of the Companies Act, 2013 is annexed hereto. Further,
additional information with respect to Item Nos. 3 and 4 is 31st March, 2011 8 th August, 2011 6th September, 2018
also annexed hereto. 31 March, 2012
st
8 August, 2012
th
6th September, 2019
B.  MEMBER ENTITLED TO ATTEND AND VOTE AT THE
A 31 March, 2013
st
13 August, 2013
th
11th September, 2020
MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND 31st March, 2014 8 th August, 2014 7th September, 2021
AND VOTE INSTEAD OF HIMSELF AND A PROXY NEED NOT
31 March, 2015
st
7 August, 2015
th
8 th September, 2022
BE A MEMBER.
C. The instrument appointing a proxy must be deposited with Members who have not encashed the dividend warrants so
the Company at its Registered Office not less than 48 hours far in respect of the aforesaid periods, are requested to make
before the time for holding the Meeting. their claim to Karvy well in advance of the above due dates. It
may be noted that once the amounts in the unpaid dividend
D. A person can act as a proxy on behalf of Members not
accounts are transferred to IEPF, no claim shall lie against the
exceeding fifty and holding in the aggregate not more
IEPF or the Company in respect thereof and the Members
than ten percent of the total share capital of the Company
would lose their right to claim such dividend. Pursuant to
carrying voting rights. A Member holding more than ten
the provisions of Investor Education and Protection Fund
percent of the total share capital of the Company carrying
(Uploading of information regarding unpaid and unclaimed
voting rights may appoint a single person as proxy and
amounts lying with companies) Rules, 2012, the Company
such person shall not act as a proxy for any other Member.
has uploaded the details of unpaid and unclaimed amounts
Proxies submitted on behalf of limited companies, societies,
lying with the Company as on 7th August, 2015 (date of last
etc., must be supported by an appropriate resolution/
Annual General Meeting) on the website of the Company
authority as applicable. The Proxy-holder shall prove his
(www.mahindra.com), as also on the website of the Ministry
identity at the time of attending the Meeting.
of Corporate Affairs.
E. 
The Company’s Registrar and Transfer Agents for its
Share Registry Work (Physical and Electronic) are Karvy I. Members can avail of the facility of nomination in respect
Computershare Private Limited (Karvy) having its of shares held by them in physical form pursuant to the
office at Karvy Selenium Tower B, Plot number 31-32, provisions of section 72 of the Companies Act, 2013.
Gachibowli, Financial District, Nanakramguda, Hyderabad, Members desiring to avail of this facility may send their
Telangana – 500032. nomination in the prescribed Form No. SH-13 duly filled in
to Karvy at the above mentioned address. Members holding
F. 
The Register of Members and Transfer Books of the shares in electronic form may contact their respective
Company will be closed from Saturday, 23rd July, 2016 to Depository Participants for availing this facility.
Wednesday, 10 th August, 2016 (both days inclusive).
J. The Securities and Exchange Board of India has made it
G. The dividend, if declared at the Annual General Meeting, mandatory for all companies to use the bank account
would be paid/dispatched after 10 th August, 2016 to those details furnished by the Depositories and the bank
persons or their mandates: account details maintained by the Registrar and Transfer
(a) whose names appear as Beneficial Owners as at the Agents for payment of dividend through Electronic
end of the business hours on Friday, 22nd July, 2016 Clearing Service (ECS) to investors wherever ECS and bank
in the list of Beneficial Owners to be furnished by details are available. In the absence of ECS facilities, the
National Securities Depository Limited and Central Company will print the bank account details, if available,
Depository Services (India) Limited in respect of the on the payment instrument for distribution of dividend.
shares held in electronic form; and The Company will not entertain any direct request from
Members holding shares in electronic mode for deletion
(b) 
whose names appear as Members in the Register
of/change in such bank details. Further, instructions if
of Members of the Company after giving effect to
any, already given by them in respect of shares held
valid share transfers in physical form lodged with
in physical form will not be automatically applicable
the Company/its Registrar and Transfer Agents on or
to shares held in the electronic mode. Members who wish to
before Friday, 22nd July, 2016.
change such bank account details are therefore requested
H. 
Under the Companies Act, 1956 dividends that are to advise their Depository Participants about such change,
unclaimed/unpaid for a period of seven years are required with complete details of bank account.

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 MAHINDRA & MAHINDRA LIMITED

K. The Company has extended the facility of electronic credit their vote electronically, through the e-voting services
of dividend directly to the respective bank accounts of the provided by Karvy on all resolutions set forth in this
Member(s) through the Electronic Clearing Service (ECS)/ Notice, through remote e-voting.
National Electronic Clearing Service (NECS). Members
wishing to avail of this facility are requested to intimate II. Members are requested to note that the Company is
the Company’s Registrar and Transfer Agents/Depository providing facility for remote e-voting and the business
Participants in the prescribed form and with the prescribed may be transacted through electronic voting system.
details. Members located in places where ECS/NECS It is hereby clarified that it is not mandatory for a
facility is not available may submit their bank details to Member to vote using the remote e-voting facility
the Registrar and Transfer Agents. This will enable the and the Member can exercise his vote at the AGM. A
Company to incorporate this information on the dividend Member may avail of the facility at his discretion, as
warrants and thus prevent fraudulent encashment. per the instructions provided herein:

L. Pursuant to sections 101 and 136 of the Companies Act, Instructions:

2013 read with the Rules framed thereunder, the Notice
calling the Annual General Meeting along with the Annual A. In case a Member receives an email from Karvy
Report 2015-16 would be sent by electronic mode to those [for Members whose email IDs are registered
Members whose e-mail addresses are registered with the with the Company/Depository Participant(s)]
Depository or the Company’s Registrar and Transfer Agents, which includes details of E-Voting Event Number
unless the Members have requested for a physical copy (EVEN), USER ID and password:
of the same. For Members who have not registered their
(i) 
Launch internet browser by typing the
e-mail addresses, physical copies would be sent by the
URL: https://evoting.karvy.com.
permitted mode.
(ii) Enter the login credentials (i.e. User ID and
Members are requested to support this Green Initiative password). In case of physical folio, User
by registering/updating their e-mail addresses with ID will be EVEN (E-Voting Event Number)
the Depository Participant (in case of Shares held in followed by folio number. In case of Demat
dematerialised form) or with Karvy (in case of Shares held account, User ID will be your DP ID and
in physical form). Client ID. However, if you are already
registered with Karvy for e-voting, you can
M. Members are requested to:
use your existing User ID and password for
(a) 
intimate to the Company’s Registrar and Transfer casting your vote.
Agents, Karvy, changes, if any, in their registered
addresses at an early date, in case of Shares held in (iii) 
After entering these details appropriately,
physical form; click on “LOGIN”.
(b) 
intimate to the respective Depository Participant, (iv) You will now reach password change Menu
changes, if any, in their registered addresses at an wherein you are required to mandatorily
early date, in case of Shares held in dematerialised change your password. The new password
form; shall comprise of minimum 8 characters with
at least one upper case (A- Z), one lower
(c) 
quote their folio numbers/Client ID/DP ID in all
case (a-z), one numeric value (0-9) and a
correspondence; and
special character (@,#,$, etc.,). The system
(d) Consolidate their holdings into one folio in case they will prompt you to change your password
hold Shares under multiple folios in the identical order and update your contact details like mobile
of names. number, email ID etc. on first login. You may
N. Members are requested to bring their copy of the Annual also enter a secret question and answer of
Report to the Annual General Meeting. your choice to retrieve your password in case
you forget it. It is strongly recommended
O. 
Members/Proxies/Representatives are requested to bring that you do not share your password with
the Attendance Slip enclosed in the Annual Report for any other person and that you take utmost
attending the Meeting. care to keep your password confidential.
P. 
Mr. Sachin Bhagwat, Practicing Company Secretary (v) 
You need to login again with the new
(Membership No. ACS10189) has been appointed as the credentials.
Scrutiniser to scrutinise the e-voting process in a fair and
(vi) On successful login, the system will prompt
transparent manner.
you to select the “EVENT” i.e. Mahindra &
Mahindra Limited.
Q. PROCEDURE FOR REMOTE E-VOTING
(vii) On the voting page, enter the number of
I. In compliance with the provisions of section 108 of shares (which represents the number of votes)
the Companies Act, 2013, read with Rule 20 of the as on the Cut-off Date under “FOR/AGAINST”
Companies (Management and Administration) Rules, or alternatively, you may partially enter any
2014, as amended and the provisions of Regulation 44 number in “FOR” and partially “AGAINST”
of the Securities and Exchange Board of India (Listing but the total number in “FOR/AGAINST”
Obligations and Disclosure Requirements) Regulations, taken together shall not exceed your total
2015, the Members are provided with the facility to cast shareholding as on the cut-off date. You

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MAHINDRA & MAHINDRA LIMITED

may also choose the option ABSTAIN. If the dematerialized form, as on the cut-off date of
Member does not indicate either “FOR” or 3rd August, 2016, may cast their votes electronically.
“AGAINST” it will be treated as “ABSTAIN” A person who is not a Member as on the cut-
and the shares held will not be counted off date should treat this Notice for information
under either head. purposes only. The remote e-voting module
(viii) 
Members holding multiple folios/demat shall be disabled for voting thereafter. Once the
accounts shall choose the voting process vote on a resolution(s) is cast by the Member,
separately for each folio/demat accounts. the Member shall not be allowed to change
it subsequently.
(ix) Voting has to be done for each item of the
notice separately. In case you do not desire d. The voting rights of Members shall be in proportion
to cast your vote on any specific item, it will to their share in the paid-up equity share capital
be treated as abstained. of the Company as on Wednesday, 3rd August,
(x) You may then cast your vote by selecting an 2016, being the cut-off date. Members are eligible
appropriate option and click on “Submit”. to cast vote only if they are holding shares as on
that date.
(xi) A confirmation box will be displayed. Click
“OK” to confirm else “CANCEL” to modify. e. In case a person has become a Member of the
Once you have voted on the resolution(s), Company after dispatch of AGM Notice but
you will not be allowed to modify on or before the cut-off date for E-voting i.e.,
your vote. Wednesday, 3rd August, 2016, he/she may obtain
(xii) 
Corporate/Institutional Members (i.e. the User ID and Password in the manner as
other than Individuals, HUF, NRI etc.) are mentioned below:
required to send scanned certified true i. 
If the mobile number of the member is
copy (PDF Format) of the Board Resolution/ registered against Folio No./ DP ID Client
Authority Letter etc., together with ID, the member may send SMS: MYEPWD
attested specimen signature(s) of the <space> E-Voting EVEN Number+Folio No.
duly authorised representative(s), to the or DP ID Client ID to +91 9212993399
Scrutinizer at email id sbhagwatcs@yahoo. Example for NSDL:
co.in with a copy marked to evoting@
karvy.com. The scanned image of the above MYEPWD <SPACE> IN12345612345678
mentioned documents should be in the Example for CDSL:
naming format “Corporate Name_EVEN”. MYEPWD <SPACE> 1402345612345678
B. 
In case of Members receiving physical copy of Example for Physical:
Notice [for Members whose email IDs are MYEPWD <SPACE> XXXX1234567890
not registered with the Company/Depository
Participant(s)]: ii. If e-mail address or mobile number of the
member is registered against Folio No. /
(i) E-Voting Event Number (EVEN), User ID and DP ID Client ID, then on the home page of
Password is provided in the Attendance Slip. https://evoting.karvy.com, the member may
(ii) Please follow all steps from Sl. No. (i) to (xii) click “Forgot Password” and enter Folio
above to cast your vote by electronic means. No. or DP ID Client ID and PAN to generate
a password.

III OTHER INSTRUCTIONS : iii. Member may call Karvy’s toll free number
1800-3454-001.
a. In case of any query and/or grievance, in respect
of voting by electronic means, Members may iv. 
Member may send an e-mail request to
refer to the Help & Frequently Asked Questions evoting@karvy.com. However, Karvy shall
(FAQs) and E-voting user manual available at the endeavour to send User ID and Password to
download Section of https://evoting.karvy.com those new Members whose e-mail IDs are
(Karvy Website) or contact investors@mahindra. available.
com, or at evoting@karvy.com or phone No.
040 – 6716 1500 or call Karvy’s toll free No. 1800- IV. 
Voting at AGM: The Members, who have not cast their
3454-001 for any further clarifications. vote through remote e-voting can exercise their voting
rights at the AGM. The Company will make necessary
b. 
You can also update your mobile number and arrangements in this regard at the AGM Venue. The
e-mail id in the user profile details of the facility for voting through electronic voting system
folio which may be used for sending future (‘Insta Poll’) shall be made available at the Meeting.
communication(s). Members who have already cast their votes by Remote
e-voting are eligible to attend the Meeting; however
c. 
The remote e-voting period commences on
these Members are not entitled to cast their vote
Friday, 5th August, 2016 (9:00 a.m. IST) and ends
again in the Meeting.
on Tuesday, 9 th August, 2016 (05:00 p.m. IST).
During this period, Members of the Company, A Member can opt for only single mode of voting i.e.
holding shares either in physical form or in through Remote e-voting or voting at the AGM.

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 MAHINDRA & MAHINDRA LIMITED

V. PROCEDURE AND INSTRUCTIONS FOR WEB CHECK-IN / h. The Web Check-in (Online Registration facility) is
ATTENDANCE REGISTRATION: available for AGM during remote e-voting Period
only i.e., 5th August, 2016 (9.00 A.M. IST) to
Members are requested to tender their attendance
9 th August, 2016 (5.00 P.M. IST).
slips at the registration counters at the venue of
the AGM and seek registration before entering the The Members are requested to carry their valid photo
meeting hall. Alternatively, to facilitate hassle free and identity along with the above attendance slip for
quick registration/entry at the venue of the AGM, the verification purpose.
Company has provided a Web-Check in facility through
Karvy’s website. Web Check-in on the Karvy’s website VI. The results shall be declared not later than forty-eight
enables the Members to register attendance online hours from conclusion of the meeting. The results
in advance and generate Attendance Slip without declared along with the Scrutiniser’s Report will be
going through the registration formalities at the placed on the website of the Company at www.
registration counters. mahindra.com and the website of Karvy:https://evoting.
karvy.com immediately after the result is declared
Procedure of Web Check-in is as under: by the Chairman and will simultaneously be forwarded
a. Log on to https://karisma.karvy.com and click on to BSE Limited and National Stock Exchange of
“Web Check-in for General Meetings (AGM/EGM/ India Limited, where Equity Shares of the Company
CCM)”. are listed.
b. Select the name of the company: Mahindra and VII. The route map of the venue of the Meeting is given in
Mahindra Limited. the Notice. The prominent landmark for the venue is
c. Pass through the security credentials viz., DP ID/ that it is ’next to Bombay Hospital‘.
Client ID/Folio no. entry, PAN No & “CAPTCHA”
as directed by the system and click on the
submission button.
By Order of the Board
d. 
The system will validate the credentials. Then
click on the “Generate my attendance slip” NARAYAN SHANKAR
button that appears on the screen. Company Secretary
e. 
The attendance slip in PDF format will appear
on the screen. Select the “PRINT” option for Registered Office:
direct printing or download and save for Gateway Building, Apollo Bunder,
the printing. Mumbai - 400 001.
f. A separate counter will be available for the online CIN : L65990MH1945PLC004558
registered Members at the AGM Venue for faster e-mail : investors@mahindra.com
and hassle free entry and to avoid standing in Website : www.mahindra.com
the queue. Tel. : +91 22 22895500
Fax : +91 22 22875485
g. 
After registration, a copy will be returned to
the Member. 30 th May, 2016

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MAHINDRA & MAHINDRA LIMITED

Additional Information with respect to Item Nos. 3 During the year 1st April, 2015 to 31st March, 2016, 6 (six)
and 4 Board Meetings of the Company were held, out of which
Mr. S. B. Mainak had attended 4 (four) meetings and could not
ITEM NO. 3: attend other two meetings, due to other urgent professional
Mr. S. B. Mainak, (DIN: 02531129), Non-Independent Director, commitments.
Nominee of Life Insurance Corporation of India (LIC) on the The terms and conditions of re-appointment and remuneration
Board of the Company is liable to retire by rotation and being of Mr. S. B. Mainak would be governed by the terms and
eligible, has offered himself for re-appointment. conditions approved by the Members of the Company for
Mr. Mainak has completed 60 years of age. A qualified Chartered Non-Executive Directors of the Company at the Annual
Accountant, Mr. Mainak joined LIC as a Direct Recruit Officer General Meeting held on 7th August, 2015. In addition, he
in 1983 and retired as its Managing Director with effect from would be entitled to sitting fees for attending the Meetings of
1 March, 2016. During his long tenure at LIC, Mr. Mainak
st the Board of Directors or Committees thereof. The commission
acquired wide range of experience in several functions spanning and sitting fees paid to LIC on behalf of Mr. S. B. Mainak
Investments, Finance & Accounts and Marketing and held during the Financial Year 2015-16 is Rs. 18 lakhs and Rs. 4 lakhs
various positions including Senior/Branch Manager, Divisional respectively.
Manager of Pension & Group Superannuation and in various Mr. S. B. Mainak does not hold any shares in the Company. None
capacities in the Investment Department. of the Directors and Key Managerial Personnel of the Company
are inter-se related to each other.
Mr. Mainak also had a stint in academics as Professor
(Life Insurance) and Head of Finance Department in National
Insurance Academy (NIA), Pune, where he was instrumental ITEM NO. 4:
in creating new teaching programmes in Finance & Accounts, At the Annual General Meeting (AGM) held on 8th August, 2014,
investment, GAAP accounting and Insurance Investment and Members had approved appointment of Messrs Deloitte Haskins
Financial Reporting Standards. Mr. Mainak was Deputy President & Sells, Chartered Accountants (ICAI Firm Registration Number
of the Insurance Institute of India and Member of the Governing 117364W) as Auditors of the Company to hold office until the
Board of NIA. He was earlier appointed by the Government of conclusion of the Seventy-First AGM of the Company to be held
India on the Board of Satyam Computer Services Limited as an in the year 2017, subject to ratification of the appointment by
Independent Director for restructuring the company. the Members at every AGM held thereafter. The appointment
In 2009, he was conferred the ‘NDTV Profit Business Leadership of the Auditors was approved at the above mentioned AGM in
Award', 'CNN-IBN Indian of the Year Award’ and 'Dataquest IT pursuance of the second proviso of section 139(2), which grants
Person of the Year Award'. a three-year transition period for appointment of a new Audit
firm in place of an existing Audit firm which has completed two
Mr. Mainak is the Non-Executive Chairman of Credit Analysis term of 5 consecutive years each. Further, at the last AGM held on
and Research Limited and on the Board of ITC Limited (a listed 7th August, 2015, Members had ratified appointment of auditors,
Company), representing LIC. He is also a Member of CSR & as aforesaid.
Sustainability Committee of ITC Limited.
In terms of the requirement of first proviso of Section 139(1),
Mr. S. B. Mainak was appointed as the Additional Director of Members are requested to ratify the appointment of Auditors to
the Company with effect from 13th November, 2013, and as a hold office until the conclusion of the Seventy-First AGM of the
Director liable to retire by rotation, at the Sixty-Eight Annual Company to be held in the year 2017. The Company is actively
General Meeting held on 8th August 2014. engaged in the process of identifying its new Auditors.

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 MAHINDRA & MAHINDRA LIMITED

Explanatory Statement in respect of the Special not limited to, Non-Convertible Debentures and/or Commercial
Business pursuant to section 102 of the Companies Paper for an amount not exceeding Rs. 5,000 crores (Rupees Five
Act, 2013 Thousand Crores only), at a discount or at par or at a premium
and at such interest as may be appropriate considering the
ITEM NO. 5: prevailing money market conditions at the time of the borrowing
The Board of Directors, at its Meeting held on 30 th May, 2016, but not exceeding 10% p.a.
upon the recommendation of the Audit Committee, approved The details of the Paid-up Capital and Free Reserves, Outstanding
the appointment of Messrs D. C. Dave & Co., Cost Accountants, Borrowings and approvals sought, are as under:
having Firm Registration Number 000611, as Cost Auditors of
(Rs. in crores)
the Company for conducting the audit of the cost records of
Particulars As at As at
the Company, for the Financial Year ending 31st March, 2017
31st March, 2015 31st March, 2016
at a remuneration of Rs. 7,50,000 (Rupees Seven Lakhs Fifty
Paid-up Capital and Free 16,776 19,199
Thousand only) (excluding all taxes and reimbursement of out Reserves
of pocket expenses). Outstanding Borrowings 3,729 2,917
Pursuant to section 148 of the Companies Act, 2013 read with Approvals sought for offer of 5000* 5000**
securities including but not
the Companies (Audit and Auditors) Rules, 2014, Members of a
limited to Non-Convertible
company are required to ratify the remuneration to be paid to
Debentures and/or Commercial
the cost auditors of that company. Paper at the Annual General
Meetings
Accordingly, consent of the Members is sought for passing an
Ordinary Resolution as set out at Item No. 5 of the Notice for * Approval sought at the last Annual General Meeting held on
ratification of the remuneration payable to the Cost Auditors 7th August, 2015, has a validity of one year and under which,
for conducting the audit of the cost records of the Company for the Company has till date not issued any securities
the Financial Year ending 31st March, 2017. ** Approval sought at the ensuing Annual General Meeting

None of the Directors, Key Managerial Personnel of the Company The approval sought for offer of securities including but not
and their relatives are, in any way, concerned or interested, limited to Non-Convertible Debentures and/or Commercial
financially or otherwise, in the aforesaid Resolution except to Paper, is within the overall borrowing limits of the Company in
the extent of their shareholding, if any, in the Company. terms of section 180 of the Companies Act, 2013.
The Board commends the Ordinary Resolution set out at Item The Articles of Association of the Company is available for
No. 5 of the Notice for approval of the Members. inspection of the Members in physical or in electronic form at
the Registered Office of the Company between 10.00 a.m. to
ITEM NO. 6: 12.00 noon, on all working days (except Saturdays, Sundays and
Public Holidays), up to the date of the Annual General Meeting
In terms of section 42 of the Companies Act, 2013 read with Rule 14
(AGM) and copies thereof shall also be made available for
of the Companies (Prospectus and Allotment of Securities) Rules,
inspection in physical or electronic form at the Corporate Office
2014 (the Rules), a Company shall not make Private Placement of
of the Company situated at Mahindra Towers, 5th Floor, Dr. G. M.
its Securities unless the proposed offer of Securities or invitation
Bhosale Marg, Worli, Mumbai - 400 018 as well as during the
to subscribe to Securities has been previously approved by the
AGM at the venue thereof.
Members of the Company by a Special Resolution. In case of
an offer or invitation for offer of Non-Convertible Debentures, Accordingly, consent of the Members is sought for passing a
the Company can pass a Special Resolution once a year for all Special Resolution as set out at Item No. 6 of the Notice.
the offers or invitations to be made for such Debentures during None of the Directors, Key Managerial Personnel of the Company
the year. and their relatives are, in any way, concerned or interested,
In order to augment resources for, inter alia, the ongoing capital financially or otherwise, in the Resolution set out at Item
expenditure, long term working capital/short term working No. 6 of the Notice, except to the extent of their shareholding,
capital and for general corporate purposes, the Company may if any, in the Company.
offer or invite subscription for securities including but not limited The Board commends the Special Resolution set out at Item
to secured/unsecured redeemable Non-Convertible Debentures No. 6 of the Notice for approval by the Members.
and/or Commercial Paper, in one or more series/tranches on
private placement basis, in Domestic and/or International ITEM NO. 7:
market, issuable/redeemable at discount/par/premium.
The Company had appointed M/s. Sharepro Services (India) Private
The Company seeks to pass an enabling resolution to borrow Limited (hereinafter referred to as Sharepro) as its Registrar and
funds from time to time by offer of securities, including but Transfer Agent (hereinafter referred to as R&T) in the year 2003.

7
MAHINDRA & MAHINDRA LIMITED

The Securities and Exchange Board of India (SEBI) had vide its Doshi Marg, Mumbai, Maharashtra 400023 and/or at such places
Ex-Parte Ad Interim Order No. WTM/RKA/MIRSD2/41/2016 dated within Mumbai where Karvy may have their office from time to
22nd March, 2016 inter alia advised clients of Sharepro to carry time and/or at the Registered Office of the Company at Gateway
out/switchover their activities related to registrar to an issue and Building, Apollo Bunder, Mumbai – 400 001 and/or at the Company’s
share transfer agent, either in-house or through another registrar Corporate Office at Mahindra Towers, Dr. G. M. Bhosale Marg,
to an issue and share transfer agent registered with SEBI. P. K. Kurne Chowk, Worli, Mumbai–400 018.

Accordingly, the Company, has approved the appointment of Accordingly, consent of the Members is sought for passing a
Karvy Computershare Private Limited (Karvy) having its Office Special Resolution as set out at Item No. 7 of the Notice.
at Karvy Selenium Tower B, Plot Number 31-32, Gachibowli, None of the Directors, Key Managerial Personnel of the Company
Financial District, Nanakramguda, Hyderabad, Telangana – and their relatives are, in any way, concerned or interested,
500032, as the new R&T of the Company in place of Sharepro financially or otherwise, in the Resolution set out at Item No. 7
with effect from 13th June, 2016. of the Notice, except to the extent of their shareholding, if any,
Section 94 of the Companies Act, 2013 (the Act) provides that in the Company.
for keeping the Register of Members together with Index of The Board commends the Special Resolution set out at Item
Members, Register of Debenture Holders and other security No. 7 of the Notice for approval by the Members.
holders, if any, together with Index of Debenture Holders and
other security holders, if any, and copies of the Annual Return at
By Order of the Board
a place in India other than the registered office of the Company
in which more than one-tenth of the total number of members NARAYAN SHANKAR
entered in the Register of Members reside, approval of Members Company Secretary
by way of Special Resolution is required. Registered Office:
It is proposed that the Register of Members together with the Gateway Building, Apollo Bunder,
Index of Members, the Register of Debenture Holders and other Mumbai - 400 001.
CIN : L65990MH1945PLC004558
security holders, if any, together with the Index of Debenture e-mail : investors@mahindra.com
Holders and other security holders, if any, under section 88 of Website : www.mahindra.com
the Act, and copies of the Annual Return under section 92 of the Tel. : +91 22 22895500
Act be kept at the Office premises of the Company's new R&T Fax : +91 22 22875485
viz. Karvy at 24 B, Rajabahadur Mansion, Ground Floor, Ambalal 30 th May, 2016

Route Map to the venue of the AGM

8
vakils
 (the churn)

Mahindra & Mahindra Limited

Annual Report 2015-16
Find Inside
Company Overview Statutory Reports

02 Chairman Emeritus and Board of Directors

17 Board’s Report
03 Group Executive Board
85 Management Discussion and Analysis
05 Mahindra Group
107 Corporate Governance
05 Mahindra @ a Glance
129 Business Responsibility Report
05 We are Leaders

06 Proven Value Creation

Financial Statements
06 Rise For Good

08 Mahindra & Mahindra

08 Overview – Automotive and Farm Sectors 147 Standalone Accounts

09 Highlights for FY16 203 Consolidated Accounts

10 Global Reach

12 Technology Driven Innovation

14 New Launches

14 Automotive

14 Tractors

14 Key Accolades of FY16

16 Corporate Information

Forward Looking Statements

In this Annual Report, we have disclosed forward looking information to enable investors to comprehend our prospects and
take informed investment decisions. This report and other statements - written and oral - that we periodically make, contain
forward looking statements that set out anticipated results based on the management’s plans and assumptions. We have
tried wherever possible to identify such statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’,
‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We
cannot guarantee that these forward looking statements will be realised, although we believe we have been prudent in
assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known
or unknown risks or uncertainties materialise or should underlying assumptions prove inaccurate, actual results could vary
materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to
publicly update any forward looking statements, whether as a result of new information, future events or otherwise.
 Volatility, Uncertainty,
Complexity and Ambiguity is creating
tremendous churn in our world, akin to
the mythological Manthan in the ocean.

This churning caused turmoil, unleashing

unprecedented changes. As the
turmoil subsides, new possibilities and
positivities emerge.

At Mahindra, we are convinced

that in this VUCA world, as the
churn abates and turmoil gives
way to transformation, the nectar
of long-term sustainable growth
can be achieved.

At Mahindra, we continue to

from the Churn

Mahindra & Mahindra Limited 01

 Chairman Emeritus and Board of Directors

Left to Right Standing: Left to Right Sitting:

Vikram Singh Mehta, Independent Director Deepak S. Parekh, Independent Director

R. K. Kulkarni, Independent Director Keshub Mahindra, Chairman Emeritus
S. B. Mainak, Nominee Director Dr. Vishakha N. Desai, Independent Director
M. M. Murugappan, Independent Director
Dr. Pawan Goenka, Executive Director & Group President
(Auto & Farm Sector)
Nadir B. Godrej, Independent Director
Anand Mahindra, Chairman & Managing Director
Anupam Puri, Independent Director

02 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Group Executive Board

Left to Right Standing: Left to Right Sitting:

Ulhas Yargop, Group President (IT Sector) & Group CTO Dr. Anish Shah, Group President (Strategy)
Pravin Shah, President & Chief Executive (Automotive) V S Parthasarathy, Group CFO, Group CIO & President
Rajesh Jejurikar, President & Chief Executive (Farm Equipment & (Group Finance and M&A)
Two Wheeler) Anand Mahindra, Chairman - Mahindra Group and
Zhooben Bhiwandiwala, Managing Partner - Mahindra Partners & Managing Director, Mahindra & Mahindra Limited
President (Group Legal) Rajan Wadhera, President & Chief Executive (Truck & Power Train),
Ruzbeh Irani, President (Group Communications & Ethics) & Head - Mahindra Research Valley (MRV)
Chief Brand Officer Ashok Sharma, President (Agri and Africa & SAARC Operations),
L. Ravichandran, President & Chief Operating Officer MD & CEO, MASL
(Tech Mahindra Limited) Anita Arjundas, Managing Director & CEO (Mahindra Lifespace
S. Ramkrishna, President (Group Public Affairs) Developers Limited) & President (Real Estate Sector)

Ramesh Iyer, Managing Director (Mahindra & Mahindra Financial Dr. Pawan Goenka, Executive Director - Mahindra & Mahindra &
Services Limited) & President (Financial Services Sector) Group President (Auto and Farm Sector)

Rajeev Dubey, Group President (HR & Corporate Services) & S. P. Shukla, Group President & CEO (Aerospace & Defence Sector)
CEO (After-Market Sector) S. Durgashankar, President (Group M&A, Corporate Accounts &
C.P. Gurnani, Managing Director & CEO - Tech Mahindra Limited Group Secretarial)

Kavinder Singh, Managing Director (Mahindra Holidays and

Resorts India Limited) & President (Leisure and Hospitality Sector)
Johng-Sik Choi, President & CEO - Ssangyong Motor Company
Mahindra & Mahindra Limited 03
The Mahindra Group is like a banyan tree. Starting with the original trunk of M&M,
the Group’s first business, the tree, over the years, grew both horizontally and
vertically with new aerial roots taking shape in the form of new businesses. These
new businesses planted themselves into the ground to become new trunks that
would sustain newer branches and in future these could eventually be as strong as
the original.

04 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Mahindra Group
Mahindra & Mahindra is a part of the US$ 17.8 The Mahindra Group focuses on enabling people to Rise through
solutions that power mobility, drive rural prosperity, enhance urban
billion global Mahindra Group headquartered lifestyles and increase business efficiency.
in Mumbai, India, with a presence in over 100
countries and employing over 2,00,000 people. The Seven decades in the making, our history and growth closely follows
that of modern India. It is a story of strong and consistent growth, of
Group’s operations span 20 key industries across how an Indian Company is rising to become a multi-national Company.
10 sectors.

Mahindra @ a Glance
` 1,16,245 Cr
US$ 17.8 bn
REVENUES 154 SUBSIDIARIES 100+ COUNTRIES

20 INDUSTRIES 16 ASSOCIATES 2,00,000 PEOPLE

10 SECTORS 8 JOINT VENTURES

= 1 GROUP
We are Leaders Farm
India’s largest tractor Company
We are India’s largest tractor Company as well Auto
as India’s largest Utility Vehicle manufacturer. India’s #1 Utility Vehicles maker
Several of our businesses enjoy leadership Financial Services
positions in the industries where they are present. Largest NBFC in rural and semi-urban India
We remain committed to investing in technology, Information Technology
growing our global presence and maintaining our Among Top 5 IT service providers from India
leadership position. Pre-owned Cars
India’s largest multi-brand, pre-owned car Company
Hospitality
India’s #1 vacation ownership Company

Mahindra & Mahindra Limited 05

Proven Value Creation Rise For Good
The Mahindra Group has consistently created value for all stakeholders. At Mahindra, we see an incredible opportunity to drive
The total Market Capitalisation of the Group has increased by 108
times in the last 21 years and by 23 times in the last 11 years.
positive change in the lives of all our stakeholders. By
making every aspect of our business sustainable, we
re-affirm our commitment to a better world. From
our employees to the communities which we are a
Group Market Capitalisation (` Cr)
part of, we want to conduct our business consciously
and responsibly. In everything we do, we ensure that
1,54,510 we Rise For Good.

Sustainability
x
08

Our core values are aligned with sustainable growth that is in

-1

3x

harmony with the environment and society. We have built a green

rs

-2
a

revenue portfolio of over US$ 393 million and have proactively been
Ye

rs
21

addressing issues pertaining to Sustainability. We are a water positive

Ye

group. Mahindra is also the first Indian Company to sign up to EP

11

6,583 100 – a new initiative to double energy productivity by 2030 which is

1,434 developed and administered by The Climate Group. We will continue
to invest in technologies that increase energy efficiency and enhance
our use of renewable energy. We also focus on increasing recycling,
FY1995 FY2005 FY2016
reducing waste and restricting the use of hazardous substances in
Prices as on 31st March
our manufacturing activities.
US$ = ` 66.35

Communities
Market Cap (31st March 2016) ` Cr We believe that people have the strength to change their surroundings
if they are empowered and given access to tools they need to become
Mahindra & Mahindra 75,196
change agents in their communities. Currently, our initiatives focus on
Tech Mahindra 45,966 tapping into this potential with key focus on education and an emphasis
Mahindra Financial Services 13,881 on cultural outreach.

Ssangyong 6,564
People
Mahindra Holidays 3,432 In more than 100 countries around the world, we foster an environment
Mahindra Lifespaces 1,729 of innovation and self-belief that empowers our employees to chase
their passions. Through a variety of initiatives, we are enabling
Swaraj Engines 1,064
‘Mahindraites’ to have fulfilling careers and contribute to society by
Mahindra CIE 6,343 volunteering both their time and resources.
EPC Industrié 335
Total 1,54,510
Governance
Ethics and good governance are essential for success in a competitive
(US$ 23.3 bn) economy. They are the foundation on which we have built our federation
of global companies. In fact, we have always been a pioneer in this
area, setting benchmarks and implementing systems and processes
well before they become legally mandated.

06 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Rise for Good is

a call to action to
do good.

Mahindra & Mahindra Limited 07

 Mahindra & Mahindra
Overview – Automotive and Farm Sectors
Automotive Tractor and Farm Mechanisation
Towards becoming a globally admired automotive brand Towards driving farm prosperity

In 1947, we introduced the Utility Vehicle (UV) to India. Since then, we We have been India’s leading tractor maker for over thirty years, with
have expanded our automotive portfolio to become a full range player over 40% market share. Today, our tractors and farm mechanisation
– from two wheelers to passenger vehicles to heavy commercial solutions help enhance farm productivity in over 25 countries across
vehicles and Electric Vehicles (EV). Our vehicles are known for their the globe. Our growing presence in North America through our
tough, rugged and reliable DNA and cater to a wide spectrum of subsidiary Mahindra USA (MUSA) is helping us build ‘Made in India’
customer needs, from enhancing lifestyle to generating livelihood. and ‘Mahindra’ brand in overseas markets.
Today, our indigenously designed and developed products offer
features and technologies that are fuel-efficient and accessible across For strengthening our global footprint and introducing modern
our wide range of offerings, be it UVs, PIK-UPs, Heavy Commercial technologies of farm mechanisation in India, we have entered into
Vehicles and EVs. We continue to push the boundaries of ingenuity strategic partnerships with Mitsubishi Agricultural Machinery
and frugality to create a distinct ‘Customer Value Proposition’ while (Japan) and Sampo Rosenlew (Finland). With the introduction of new
developing mobility solutions for India and the overseas markets. products, we will have a significant presence in the rice value chain
and combine harvesters.

08 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Highlights for FY16

For the year under review, we continued to maintain our leadership in the UV segment, Small Commercial
Vehicle segment and the Tractor industry, while strengthening our global presence.

Automotive Business

NEW
NO. 1 NO. 1 IN
14 PRODUCTS
LAUNCHED IN UV
37.9%
MARKET SHARE SMALL CV
51%
MARKET SHARE

KUV100
BOLERO IN A YEAR, FOR 4TH
35,000+ SURPASSED
NO. 1 UV
FOR 10TH
CONSECUTIVE YEAR
1,00,000 CONSECUTIVE YEAR
IN BOOKING PIK-UPs

VOLUME
mFALCON
1ST PETROL ENGINE
FROM MAHINDRA
36,031 HIGHEST EXPORT
EVER 6.3% GROWTH
EXPORTS IN FY16

NO. 1 IN JD POWER ASIA PACIFIC

SSI 2015 2015 INDIA SALES SATISFACTION INDEX (SSI) STUDYSM

Tractor and Farm Mechanisation Business

7 NEW PRODUCTS
LAUNCHED
40.9% HIGHEST IN
LAST 4 YEARS
NO. 1 IN
TRACTORS
33 YEARS OF
LEADERSHIP
MARKET SHARE

DIGITAL PLATFORM
HIGHEST EVER
TRRINGO
FOR MAKING 36,987 TOTAL VOLUME OVER 19,000 SALES BY
MECHANISATION TRACTORS OUTSIDE INDIA TRACTORS
MAHINDRA USA
ACCESSIBLE

STRENGTHENING GLOBAL PRESENCE AND PRODUCT PORTFOLIO THROUGH

2 STRATEGIC STRATEGIC PARTNERSHIPS WITH MITSUBISHI AGRICULTURAL MACHINERY
PARTNERSHIPS
(JAPAN) AND SAMPO ROSENLEW (FINLAND)

Mahindra & Mahindra Limited 09

Global Reach
Product Development Centres Strategic Partnerships Manufacturing Plants

USA
Detroit (MNATC)

USA
Houston
(Tractor)

Market Access

Farm Automotive
North America APAC
USA and Canada Australia, Bangladesh, Bhutan, East Timor, India, Malaysia, Nepal,
New Zealand, Papua New Guinea, South Korea, Singapore, Sri Lanka,
Middle East & Africa
Thailand and Vietnam
Algeria, Angola, Botswana, Congo, Egypt, Ethiopia, Gambia, Ghana,
Guinea, Iran, Iraq, Ivory Coast, Kenya, Madagascar, Malawi, Mali, Morocco, Middle East & Africa
Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, Sudan, Algeria, Angola, Botswana, Congo, Egypt, Ethiopia, Gambia, Ghana,
Tanzania, Chad, Tunisia, Uganda and Zambia Guinea, Iran, Iraq, Ivory Coast, Kenya, Madagascar, Malawi, Mali, Morocco,
Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, Sudan,
APAC
Tanzania, Chad, Tunisia, Uganda and Zambia
Australia, Bangladesh, Bhutan, East Timor, India, Malaysia, Nepal,
New Zealand, Papua New Guinea, South Korea, Singapore, Sri Lanka, Europe
Thailand and Vietnam Belgium, Finland, France, Germany, Hungary, Iceland, Ireland, Italy,
The Netherlands, Norway, Romania, Spain, Sweden, Switzerland and the UK
South America
Brazil, Chile, Columbia, Ecuador, Nicaragua, Paraguay and Peru South America
Brazil, Cayman Islands, Costa Rica, Chile, Columbia, Dominican Republic,
Ecuador, Nicaragua, Paraguay and Peru

10 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Finland
Sampo
Rosenlew
China
MYYTCL (Tractor)
Italy
MGRD
Pininfarina

Japan
MAM

Korea
SYMC

India
Chennai (MRV)
Australia
Brisbane
Pune (CV)
(Tractor)
Bengaluru (EV)

Product Development Centres

6. Nashik (Tool & Die Shop)
8. Mumbai (Design Studio)
9. Chakan - Pune (Truck R&D)
12. MRV Chennai (R&D Centre) •3 •1
•2
Manufacturing Plants
•4
Tractors Vehicles
2. Rudrapur 1. Haridwar
3. Mohali 6. Nashik
4. Jaipur 9. Chakan (Pune) •6 •5
5. Nagpur 8. Mumbai •7
8 • •9
8. Mumbai 10. Zaheerabad • 10
10. Zaheerabad

11 • • 12
Electric Vehicles Engine
11. Bengaluru 7. Igatpuri

Trucks
9. Chakan (Pune)

Not to scale - for illustrative purpose only

Mahindra & Mahindra Limited 11

Technology Driven Innovation

We believe Innovation will be one of the main drivers of our efforts at emerging among the Top 50 Most
Admired brands in the world by 2021.

Innovation is deeply embedded in our DNA and is fueled by growing investments in technology, encouraging
a culture of empowerment for employees to think differently and develop innovative new ideas, products and
solutions for our customers.

5 S Innovation Framework

Space Self Indulgent Simplicity Sans Sustained

Creativity Experimentation

for innovative ideas to working on problems finding simple ‘without’ in French, constantly working
flow, one needs mind that one is passionate solutions to something we at on new ideas, and
space to think about about and wants to complex problems. Mahindra thrive on, the learning quickly from
innovative solutions. indulge in, but which ability to solve problems them leads to new
may not be directly without access to innovations.
connected with the supposedly adequate
daily job one is doing. resources.

Our state-of-the-art R&D facility, the Mahindra Research Valley technology offers three drive modes - Turbo, Heavy and Light,
(MRV) in Chennai, validates our commitment towards technology based on load and road conditions, thus optimising fuel efficiency.
driven innovation. This modern facility has been the birthplace of
3. he technology-packed Mahindra Yuvo delivers more
T
world-class automotive products like XUV500, TUV300, KUV100
coverage, faster operations and better quality of work. The
and the technology-packed Arjun NOVO & Mahindra YUVO tractors.
Yuvo range offers many best-in-class and category first
MRV helps deliver a competitive edge through synergies in technology
features like 12F+3R gears, 1500 kg lift capacity, precision
development, indigenous design, shortened product development
hydraulics and high engine power (best-in-class max torque).
cycles and enhanced people capabilities.
Designed for over 30 different farming applications, the YUVO
We, at Mahindra, aim to provide accessible technology to our supports farmers with land preparation to harvesting as well
customers and our recent launches of KUV100, TUV300, Blazo as post-harvesting operations.
trucks and Mahindra Yuvo tractors are testaments to that fact.
4.  ith the recently launched TRRINGO digital platform, we have
W
1. In KUV100, we have provided safety features like ABS and EBD entered into the farm equipment rental services, using new age
at an entry level price point. Dual airbags are optional from the technology and digitisation. Through TRRINGO, our endeavour is
base variant and ISOFIX mounts for a child seat on the rear to make tractors and implements more accessible to the small
seat. The KUV100 also offers first-in-class option of Power/ECO and marginal farmers.
Mode and Micro-Hybrid Technology in the diesel variant. Other
5.  ahindra became one of the first large corporate groups in
M
features include Driver Information System, Steering-mounted
the country to initiate a digital mobility platform with the launch
audio & phone controls and electrically adjustable ORVMs.
of SmartShift - a technology-enabled, intra-city load exchange
2. Our new range of Mahindra Blazo trucks feature ‘Fuel Smart’ platform. SmartShift acts as an exchange platform for cargo
technology that significantly enhance fuel efficiency. Its Multimode owners and transporters.

12 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Our investment in technology and product development has grown from with MRV in Chennai and our partners across the globe. Mahindra
` 115 cr in FY06 to ` 1,938 cr in FY16. We filed 173 patents in FY16, North American Technical Centre (MNATC) is helping us leverage the
compared to 156 in the previous year. Our efforts towards technology mature automotive development ecosystem in USA. Synergies with
development and generating IPR have been recently recognised with SYMC in Korea and our proposed investment in Pininfarina will further
three prestigious National Awards on World Intellectual Property Day help enhance our design and development capabilities.
under the categories of ‘Best Commercialisation of Patents’, ‘WIPO
In the Agri machinery space, we will enhance our global presence and
(World Intellectual Property Organisation) Users Trophy’ and ‘Top
product portfolio, through our strategic partnerships with Mitsubishi
Organisation for Trademarks’.
Agri Machinery (MAM), Japan and Sampo Rosenlew Oy, Finland.
Going forward, we will continue to enhance our technology and These partnerships will enhance our presence across the rice value
product development capability by leveraging the neural network chain and the global combine harvester business.

Investment in Technology Patent

& Product Development Application
4.7%
of Revenue

1.4%
of Revenue

` 115 Cr ` 1,938 Cr 10 173

FY06 FY16 FY06 FY16

Strengthening indigenous technology and product development leveraging global innovation footprint

Finland
Sampo Rosenlew
(Farm Mechanisation)

South Korea
Ssangyong
Motors
(Auto)

Japan
North America Mitsubushi
Mahindra North Agricultural
America Technical India Machinery
Italy
Centre (Auto) Mahindra (Tractor & Farm
Pininfarina and MGRD
(Auto) Research Valley Mechanisation)
(Auto & Tractor)
Not to scale - for illustrative purpose only

Mahindra & Mahindra Limited 13

New Launches
Automotive

New Age XUV500 and XUV500 AT KUV100 TUV300

Supro Maxitruck Supro Van Blazo Truck

Tractors

Mahindra YUVO Arjun Novo 4WD 555 PP

Key Accolades of FY16 what it takes to execute best-in-class leadership and talent
management around the world.

• Mr. Keshub Mahindra, Chairman Emeritus of the Company • The Company bagged the ‘Technology Innovation of the Year’ award
was honoured with the Lifetime Achievement Award from at IATIA 2015 for its smartphone based Mahindra Blue Sense App
ASSOCHAM (The Associated Chambers of Commerce and which provides functionalities like E-Call, Green Drive, Navigation,
Industry of India), in recognition of his stellar contribution to Connectivity and Telematics solutions at no additional cost.
the Indian industry over the past five decades.
• The Company was awarded the coveted Golden Peacock Award for
• Mahindra Group Chairman, Mr. Anand Mahindra featured Excellence in Corporate Governance by the Institute of Directors
among Top 30 Global CEOs in the prestigious Barron’s as well as the National Award for Excellence in Corporate
2016 List. Mr. Mahindra was one of four international Governance by the Institute of Company Secretaries of India.
leaders to join the list in 2016.
• The Company was awarded the third prize in the category of ‘Top
• The Company received the AON Hewitt Award for Top 10 Global 3 Institutions for R&D in Renewable Energy’ by the Ministry of
Companies for Leaders. The study evaluates and recognises Non-conventional and Renewable Energy (MNRE), Govt. of India.

14 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Thar CRDe NuvoSport Jeeto Imperio

49 T Tractor Trailer Excelo School Bus

415 DI 245 Orchard Swaraj 960 Swaraj 717

Presented by Hon. Minister of Renewable Energy Mr. Piyush latest survey conducted by Finance Asia magazine among top
Goyal, M&M is the only private Company to receive this R&D global fund managers and analysts.
award.
• The Company was ranked No. 1 in the study conducted by
• Manufacturer of the Year by CNBC Overdrive Awards 2016 and Economic Times for ‘The Best Companies for CSR’.
ET India Manufacturing Excellence Award 2015 by Frost and
• The K. C. Mahindra Education Trust was chosen as the winner
Sullivan.
of the TOI Social Impact Award 2015 in the ‘Corporate–
• The Company won the Business Today ‘Best Companies to Education’ category for Project Nanhi Kali.
Work For’ award in 2016 in the Engineering & Automotive
category, as well as the Top 25 Great place to work by
the Great Places to Work Institute, in partnership with
Economic Times.
• The Company was ranked among the top two in ‘Best at Investor
Relations’ category among Indian companies, according to the

Mahindra & Mahindra Limited 15

 Corporate Information
committees of the board Chairman Emeritus Bankers
Bank of America N.A.
Audit Committee Mr. Keshub Mahindra
Bank of Baroda
Mr. Deepak S. Parekh – Chairman
Bank of India
Mr. Nadir B. Godrej Board Of Directors Canara Bank
Mr. M. M. Murugappan
Mr. Anand G. Mahindra Central Bank of India
Mr. R. K. Kulkarni
Chairman & Managing Director HDFC Bank Limited
Standard Chartered Bank
Stakeholders Relationship Committee Dr. Pawan Goenka State Bank of India
Mr. R. K. Kulkarni – Chairman Executive Director Union Bank of India
Mr. Anand G. Mahindra
Dr. Pawan Goenka Mr. Deepak S. Parekh
Dr. Vishakha N. Desai
Auditors
Mr. Nadir B. Godrej Deloitte Haskins & Sells
Tower 3, 27th-32nd Floor,
Governance, Nomination and Remuneration Mr. M. M. Murugappan Indiabulls Finance Centre,
Committee
Mr. R. K. Kulkarni Elphinstone Mill Compound,
Mr. M. M. Murugappan – Chairman
Senapati Bapat Marg,
Mr. Nadir B. Godrej
Mr. Anupam Puri Elphinstone (W), Mumbai - 400 013
Mr. Vikram Singh Mehta
Mr. R. K. Kulkarni Dr. Vishakha N. Desai Advocates
Mr. Vikram Singh Mehta Khaitan & Co.,
Corporate Social Responsibility Committee
One Indiabulls Centre,
Dr. Vishakha N. Desai – Chairperson Mr. S. B. Mainak 13th Floor, 841, Senapati Bapat Marg,
Mr. Anand G. Mahindra Nominee of Life Insurance Elphinstone Road, Mumbai - 400 013
Dr. Pawan Goenka
Corporation of India
Mr. R. K. Kulkarni
Mr. Vikram Singh Mehta
Registered Office
Gateway Building, Apollo Bunder,
Mumbai - 400 001
Strategic Investment Committee Mr. Narayan Shankar
Mr. Anand G. Mahindra – Chairman Company Secretary
Mr. Deepak S. Parekh
Mr. Nadir B. Godrej
Mr. Vikram Singh Mehta
Mr. Anupam Puri

Loans & Investment Committee

Mr. Anand G. Mahindra – Chairman
Dr. Pawan Goenka
Mr. R. K. Kulkarni
Mr. Vikram Singh Mehta

Research & Development Committee

Mr. M. M. Murugappan – Chairman
Mr. Anand G. Mahindra
Dr. Pawan Goenka
Mr. Nadir B. Godrej

Risk Management Committee

Dr. Pawan Goenka – Chairman
Mr. Deepak S. Parekh
Mr. Nadir B. Godrej
Mr. M. M. Murugappan
Mr. R. K. Kulkarni

16 Annual Report 2015-16

Board’s
Report
 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Board’s Report

Dear Shareholders The fact that India’s economic recovery remained on course
throughout the Financial Year 2015-16, despite an extremely
Your Directors present their Report together with the audited weak and volatile global operational environment, is impressive
financial statements of your Company for the year ended and bears testimony to the policy repair that has been
31st March, 2016. wrought since the near crisis experienced in May 2013. Aided
by subdued oil and metal prices and supported by positive
A. FINANCIAL AND OPERATIONAL HIGHLIGHTS policy actions, the country’s key macroeconomic indicators –
(Rs. in crores) inflation, fiscal deficits and current account balances – have
2016 2015 witnessed a remarkable turnaround and consolidated further
Gross Income 44,461 41,481 through the year. The string of financial storms that hit global
Less: Excise Duty on Sales 2,722 2,188 markets in 2015, engendered by uncertainty surrounding US
Net Income 41,739 39,293 monetary policy actions, rising risks of a hard-landing in China
Profit before Depreciation, Finance
and the unfolding economic and geopolitical crises in Europe
Costs, Exceptional items and Taxation 5,425 5,022
Less: Depreciation/Amortisation 1,109 975 and the Middle East, resulted in portfolio flows to India, and
Profit before Finance Costs, other emerging markets, turning negative this fiscal. However,
Exceptional items and Taxation 4,316 4,047 consolidating macros, coupled with a steady improvement
Less: Finance Costs 155 214 in policy and regulatory environment, led to a 28% increase
Profit before Exceptional items
in foreign direct investment flows to the country, providing
and Taxation 4,161 3,833
Add: Exceptional items 69 336 it with a much needed buffer. Thus, even as portfolio flows
Profit before Taxation 4,230 4,169 reversed, the surge in FDI inflows allowed the central bank to
Less: Provision for Tax – Current Tax grow international reserves by close to $20 billion by year end,
(including MAT credit entitlement) 806 743 strengthening the economy’s ability to absorb future external
Less: Provision for Tax – Deferred
Tax (Net) 257 105 shocks without de-stabilizing.
Profit for the year 3,167 3,321 Growth momentum, however, remained disappointingly
Balance of profit for earlier years 14,750 12,325 modest and patchy through most of the year. With external
Less: Transfer to Debenture
demand remaining sluggish, rural incomes battered by four
Redemption Reserve 3 17
Add: Transfer from Debenture consecutively weak cropping seasons and domestic private
Redemption Reserve 100 — investments constrained by excess capacities and rising balance
Profits available for appropriation 18,014 15,629 sheet stress, urban consumption and public capital expenditures
Add: Reversal of income tax on were virtually the only sources of demand that picked up pace
dividend paid for 2013-14 — 3
this fiscal. Economic activity, as a consequence, remained far
Less: Proposed Dividends 745 745
Income-tax on Proposed Dividend 96 102 feebler through 2015-16 than was anticipated at the start of
Depreciation as per transitional the year.
provision as specified in
However, even amidst this scenario, your Company recorded an
Schedule II of the Companies Act,
2013 For 2014-15 [Net of Tax of increase of 6.23% in net income at Rs. 41,739 crores in the year
Rs. 18.24 crores] — 35 under review as against Rs. 39,293 crores in the previous year.
Income-tax on Dividend Paid for
2014-15 * — The Profit for the year before Depreciation, Finance Costs,
Balance carried forward 17,173 14,750 Exceptional items and Taxation recorded an increase of 8.02%
* denotes amounts less than Rs. 50 lakhs at Rs. 5,425 crores as against Rs. 5,022 crores in the previous

Mahindra & Mahindra Limited 19

year. Profit after tax declined by 4.64% at Rs. 3,167 crores as (except LCV < 2T and 3W Goods) posted growth. This growth
against Rs. 3,321 crores in the previous year. is much more broad-based as compared to the patchy growth
in the Financial Year 2014-15, where many segments continued
Your Company continues with its rigorous cost restructuring
to be in the negative after the low of Financial Year 2013-14. In
exercises and efficiency improvements which have resulted in
Financial Year 2015-16, the Passenger vehicle segment reported
significant savings through continued focus on cost controls
a growth of 7.2% which was largely driven by new launches -
and process efficiencies thereby enabling the Company to
both in Car and UV segments. The commercial vehicle segment
maintain profitable growth in the current economic scenario.
grew 11.5% after three consecutive years of decline. Within
No material changes and commitments have occurred after the the commercial vehicles, the < 3.5T GVW segment continued
closure of the Financial Year 2015-16 till the date of this Report, to face difficult times due to slowdown in Agri incomes and
which would affect the financial position of your Company. finance availability.

Performance Review Your Company’s UV sales volume grew by 7.5%, and your
Company continued leadership of the domestic UV market
Automotive Division:
by posting a market share of 37.9%. During this year, Bolero
Your Company’s Automotive Sector recorded total sales of
retained the title of India’s largest selling SUV for the
4,94,096 vehicles (4,37,911 four-wheelers and 56,185 three-
10th consecutive year, and the XUV500 continued to be the
wheelers) as against a total of 4,64,850 vehicles (4,05,446
customer’s choice in the premium UV segment with over
four wheelers and 59,404 three-wheelers) in the previous year,
36,000 sales in the year.
registering a growth of 6.3% in vehicle sales.
The highlight for the year under review was the launch of
On the domestic sales front, your Company sold a total of two all new UVs, the TUV300 and KUV100 in the compact
4,58,065 vehicles as compared to 4,34,654 vehicles in the UV segment. Launched in September, 2015, the TUV300 is
previous year registering a growth of 5.4%. inspired by the design of a battle tank that lends it a tough,
In the Passenger Vehicle segment, your Company sold 2,36,307 bold and stylish, ’true-blue SUV’ character. Despite the tough
vehicles [including 2,22,324 Utility Vehicles (UVs), 10,588 Vans appearance of a true blue SUV on the outside, the TUV300
and 3,395 Cars] which is a growth of 5.5% over the previous is stylish and extremely comfortable on the inside and comes
year’s volume of 2,23,968 vehicles [including 2,06,837 UVs, loaded with a host of technology and safety features. The
13,947 Vans and 3,184 Cars]. KUV100 which was launched in January, 2016, is designed to
appeal to the cool and trendy, with its Aggressive Design with
In the commercial vehicle segment, your Company sold
Imposing SUV Stance. Powered by the all new mFALCON family
1,66,783 vehicles [including 27,834 vehicles < 2T GVW, 1,26,819
of petrol and diesel engines, the KUV100 marks Mahindra’s
vehicles between 2-3.5T GVW, 6,425 LCVs in the LCV > 3.5T
entry into the petrol space. Driven by the new launches, the
segment and 5,705 HCVs (Heavy Commercial Vehicles)]
UV volume growth for your Company in the second half of the
registering a growth of 8.4% over the previous year’s volume
Financial Year 2015-16 was 19.7% as against decline of 5.5% in
of 1,53,922 commercial vehicles [including 15,255 vehicles < 2T
the first half of the Financial Year 2015-16.
GVW, 1,29,755 vehicles between 2-3.5T GVW, 5,413 LCVs in the
LCV > 3.5T segment and 3,499 HCVs]. In the LCV < 2T segment, your Company launched the all new
small commercial vehicle Jeeto. Jeeto is the first ever product
In the three-wheeler segment, your Company sold 54,975
in its category with a modular range of eight mini-trucks to
three-wheelers registering a decline of 3.2% over the previous
cater to the varied needs of the sub 1 tonne load segment
year’s volume of 56,764 three-wheelers.
customers. On back of success of Jeeto, your Company’s market
A key highlight for the year under review was the launch share for this segment stood at 23.9% as against 11.6% in the
of fourteen new products by your Company. These product previous year.
launches were across product categories and have helped
In the PIK-UP segment of commercial vehicles (LCV 2 to 3.5T),
strengthen your Company’s presence across industry segments.
your Company maintained its leadership position with a market
For the year under review, the Indian automotive industry share of 69.1%. In January, 2016, your Company launched
(except 2W) grew 7.1% and all segments of the industry Imperio, the premium, aspirational PIK-UP.

20 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

In February, 2016, your Company launched Blazo series heavy During the year under review, your Company exported 11,545
commercial trucks with Fuelsmart technology. The Blazo series tractors which is a decline of 16.0% over the previous year.
of trucks are backed by a guarantee of superior mileage and a While the exports grew to the neighbouring countries, the
48 hours service guarantee. slowdown in the African market due to the oil crisis, impacted
the overall export volumes.
During the year under review, your Company posted the highest
ever export volume of 36,031 vehicles as against previous year Beyond tractors, your Company has presence in crop care
export of 30,196 vehicles, a growth of 19.3%. Your Company solutions and distribution of seeds. The focus of this business is
continued to grow its presence in the neighbouring markets to provide quality inputs and help improve farm productivity.
of Sri Lanka, Nepal, Bangladesh and Bhutan, where volumes In Financial Year 2015-16 this business saw a growth of 13.3%
grew by 29%. With continued efforts of building brand in key in terms of revenue.
markets like South Africa and Chile, your Company reported a In the power generation space, under the Mahindra Powerol
volume growth of 5% and 20% respectively. Brand, your Company continues to be amongst the leaders in
the industry. Your Company earned a revenue of Rs. 1,109.9
Spare parts sales for the year stood at Rs. 1,772.8 crores
crores in the current financial year as against Rs. 955.5 crores
(including Exports of Rs. 111.5 crores) as compared to Rs. 1,569.5
in the previous year, recording a growth of 16.4%. Along with
crores (including Exports of Rs. 104.0 crores) in the previous
the revenue growth, your Company has improved its presence
year, registering a growth of 12.9%.
in the retail segment and made good progress in the ‘Energy
Management Solutions’ space.
Farm Division:
Spare parts sales for the year stood at Rs. 540.3 crores
Your Company’s Farm Division (including Swaraj Division)
(including Exports of Rs. 34.8 crores) as compared to Rs. 526.3
recorded sales of 2,14,173 tractors as against 2,34,766 tractors
crores (including Exports of Rs. 48.8 crores) in the previous
sold in the previous year, recording a decline of 8.8%.
year, registering growth of 2.7%.
In the Financial Year 2015-16, the Indian tractor industry
declined by 10.4%. The domestic tractor industry recorded Current Year’s review
sales of 4,93,497 tractors as compared to 5,50,963 tractors in During the period 1st April, 2016 to 29th May, 2016, 60,027
the previous year. This was the second consecutive year of steep vehicles were produced as against 65,086 vehicles and 57,668
decline, with the Financial Year 2014-15 decline being 13.1%. As vehicles were despatched as against 59,956 vehicles during
a result of decline in these two consecutive years, the industry the corresponding period in the last year. During the same
volume for Financial Year 2015-16 was 22.1% below the all- period 44,730 tractors were produced and 44,778 tractors
time high of Financial Year 2013-14. The key reason behind dispatched as against 38,382 tractors produced and 38,175
this decline is, two successive years of deficient monsoon, tractors despatched during the corresponding period in the
which have impacted the crop production and rural sentiment previous year.
at large.
Recent data indicators suggest that the country is likely to
Your Company’s sales in the domestic market stood at experience a stronger, more broad-based economic recovery
2,02,628 tractors as compared to 2,21,020 tractors in the previous in Financial Year 2016-17. For one, infrastructural activity,
year, recording a decline of 8.3%. Your Company continues to particularly in the power and road sectors, registered a smart
be the market leader with a 40.9% market share with a gain pick up in the last quarter of Financial Year 2015-16 indicating
of 0.9%. With a vision to offer class leading tractors to the that the Government’s focused policy efforts in this space are
Indian farmer, your Company in the first week of April, 2016 finally beginning to bear fruit. Rising bitumen production,
launched Mahindra YUVO, a new age, superior technology, cement dispatches and freight rates attest to the same.
range of tractors in the 30-45 HP category. The advanced Second, growth in domestic sales of motor cycles and tractors
technology of the YUVO range helps serve the diverse needs have now turned positive suggesting that the rural economy
of farmers – from land preparation to harvesting as well as may now be stabilizing, albeit at a low level. With a robust
post-harvesting requirements, helps them do more, faster monsoon season predicted for 2016, rural demand will, in all
and better. likelihood, pick up pace in the coming quarters. Finally, with

Mahindra & Mahindra Limited 21

both infrastructural activity and consumption demand gaining about Grexit, prospects of interest rate hikes by US Fed and
strength, Balance Sheet stresses in the Corporate Sector are falling oil prices kept the currency markets volatile. Indian
likely to wane, setting the stage for a revival in domestic Rupee displayed relative outperformance as compared to
private sector investments by year end. other emerging market currencies. While the global slowdown
continued to weigh on exports, which declined 16% and were
Thus, even as we remain alert to the downside risks emanating
at a 5-year low, the Government’s commitment towards fiscal
from a challenging global environment and domestic banking
prudence and progressive economic policies, led to surge
distress including Brexit, the Company’s outlook on the
of Foreign Direct investment (“FDI”). FDI in Financial Year
economy is upbeat and it stands ready to harness the business
2015-16 touched a record high of USD 56 billion. The Reserve
opportunities that stronger growth will present.
Bank of India (“RBI”) through various measures augmented
its forex reserves to counter any volatility in outflows amidst
Finance
slowing growth in China and prospects that the Federal Reserve
The world is in a churn and uncertainty and subdued global will consider raising US interest rates.
economic activity were the key themes for Financial Year
2015-16. US economy showed signs of steady recovery with With the CPI inflation firmly in control, RBI reduced repo
improvement seen in consumer spending and labour market, rate by cumulative of 75 bps in the first half of the financial
which led to the US Federal Reserve to announce an interest year. RBI continued to nudge Banks to ensure that effective
rate hike of 0.25% in December, 2015, the first rate hike in transmission of rate cut in the system takes place. Both the
nine years. The US Federal Reserve was also caught in the Government and RBI took several measures such as reduction
churn as the slow growth rate across geographies has led in small savings rates, refinements in the liquidity management
to it stalling any further rate hikes. Other major advanced framework and the introduction of the marginal cost of funds
economies such as the Eurozone and Japan struggled to revive based lending rate to improve transmission and magnify the
growth and continued with their quantitative easing. As a effects of the current policy rate cut in the economy.
first, both Eurozone and Japan resorted to the unorthodox Your Company continued to focus on managing cash efficiently
measure of adopting negative interest rate policy in order to and ensured that it had adequate liquidity and back up lines
kick-start consumption and pull their respective economies of credit. During the course of the year, your Company availed
out of deflation. As advanced economies struggled, even Export finance amounting to Rs. 315 crores under the interest
the emerging economies were hit by the fall in energy and equalisation Scheme of Government of India. During the year,
other commodity prices. Slowdown of growth in China (the your Company repaid Rs. 1,298.41 crores of borrowings from
slowest pace in 25 years) and resultant measures taken by internal accruals. The Company’s Bankers continue to rate your
the Chinese authorities, fueled volatility in financial markets Company as a prime customer and extend facilities/services at
across the world. In addition, both in case of Brazil and prime rates. Your Company follows a prudent financial policy
Russia, their economic outlook has deteriorated more rapidly and aims not to exceed an optimum financial gearing at any
than expected. In case of Africa, the region still has a lot of time. The Company’s total Debt to Equity Ratio was 0.13 as at
potential for economic expansion in the medium to long run, 31st March, 2016.
mainly due to its demographic dividend but several political
Your Company has been rated by CRISIL Limited (“CRISIL”),
and institutional constraints offer significant uncertainty.
ICRA Limited (“ICRA”), India Ratings and Research Private
Amidst all the churn across the globe, India was one of the few
Limited (“India Ratings”) and Credit Analysis & Research
bright spots in the world, which benefitted from lower energy
Limited (“CARE”) for its Banking facilities under Basel II
prices. The latest World Economic Outlook by IMF projects the
norms. All have re-affirmed the highest credit rating for your
world economy to grow at an increasingly fragile pace due to
Company’s Short Term facilities. For Long Term facilities and
global asset market volatility, loss of growth momentum in the
Non-Convertible Debenture (“NCD”) programme, CRISIL and
advanced economies and continuing headwinds for emerging
ICRA have re-affirmed their credit ratings of CRISIL AAA/
market economies.
Stable and [ICRA]AAA (stable) respectively. Further, CARE
Financial Year 2015-16 was full of surprises for the currency has also re-affirmed the ratings of the Company’s long-term
markets. The sudden currency devaluation by China, talks Bank facilities at CARE AAA. India Ratings and Research

22 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

(Ind-Ra, a Fitch Group Company) has also re-affirmed Long- analysts on key Environment, Social and Corporate Governance
Term Issuer Rating of ‘IND AAA’ with a Stable outlook to your (ESG) initiatives of the Company.
Company.
Your Company’s IR function was voted as one of the top
With the above rating affirmations, your Company continues 2 companies under the category ‘Best at Investor Relations
to enjoy the highest level of rating from all major rating in India’ for the year in the 16th Annual survey conducted by
agencies at the same time. FinanceAsia magazine, Hong Kong. FinanceAsia is a magazine
The AAA ratings indicate highest degree of safety regarding founded in 1996 to cover investment banking, capital markets
timely servicing of financial obligations and is also a vote of and strategic corporate finance in Asia Pacific and is owned by
confidence reposed in your Company’s Management by the Haymarket Media, a publishing house based in UK.
rating agencies. It is an acknowledgement of the strong credit Your Company ensures that critical information about the
profile of your Company over the years, resilience in earnings Company is available to all the investors by uploading all
despite cyclical upturns/downturns, robust financial flexibility such information at the Company’s website. Your Company
arising from the significant market value of its holdings and has created a ‘Group Investor Relations Council’ to share best
prudent management. practices across all the listed group companies and learn from
During the year, your Company obtained International Credit each other.
Rating from Moody’s Investor Service (“Moody’s”) and Standard
Dividend
& Poor (“S&P”). Both the agencies assigned investment grade
credit rating to the Company viz., Baa3 by Moody’s and Your Directors are pleased to recommend a dividend of Rs. 12
BBB- by S&P with a stable outlook. The rating reflects your per Ordinary (Equity) Share of the face value of Rs. 5 each,
Company’s diversified business profile, leading market position payable to those Shareholders whose names appear in the
in India, long track record of successful operations, strong Register of Members as on the Book Closure Date. The equity
corporate governance practices, financial flexibility and dividend outgo for the Financial Year 2015-16, inclusive of tax
conservative financial policies. on distributed profits (after reducing the tax on distributed
profits of Rs. 55.36 crores on the dividends receivable from the
With this your Company is now amongst a very few select
subsidiaries during the current Financial Year) would absorb a
Indian Corporates who enjoy investment grade rating. It may
sum of Rs. 841.68 crores [as against Rs. 846.95 crores comprising
be relevant to note that India’s sovereign rating also stands at
the dividend of Rs. 12 per Ordinary (Equity) Share of the face
Baa3 and BBB- by Moody’s and S&P respectively.
value of Rs. 5 each and tax thereon paid for the previous year].
Further, the Board of your Company decided not to transfer
Investor Relations (IR)
any amount to the General Reserve for the year under review.
Your Company continuously strives for excellence in its Investor
Relations (“IR”) engagement with International and domestic
investors through structured conference-calls and periodic B. CONSOLIDATED FINANCIAL STATEMENTS
investor/analyst interactions like individual Meetings, Tele- The Consolidated Financial Statements of the Company
presence Meetings, participation in investor conferences, and its subsidiaries, prepared in accordance with the
quarterly earnings calls and annual analyst meet with the Companies Act, 2013 and applicable Accounting Standards
Chairman & Managing Director, Executive Director and Business along with all relevant documents and the Auditors’
Heads. Your Company interacted with around 635 Indian and Report form part of this Annual Report. The Consolidated
overseas investors and analysts (excluding quarterly earnings Financial Statements presented by the Company include the
calls and specific event related calls) during the year. financial results of its subsidiary companies, associates and
joint ventures.
Your Company always believes in leading from the front with
emerging best practices in IR and building a relationship The Financial Statements as stated above are also available
of mutual understanding with investor/analysts. In order on the website of the Company and can be accessed at the
to engage with investors beyond financial numbers, your Web-link: http://www.mahindra.com/resources/investor-reports/
Company also organises annual conference call with investors/ FY16/Annual Reports/Links-AnnualReport.zip

Mahindra & Mahindra Limited 23

Subsidiary, Joint Venture and Associate Companies Holiday Club Resorts Oy, Holiday Club Sweden Ab Åre,
The Mahindra Group Companies continue to contribute to the Ownership Services Ab, Holiday Club Canarias Investments
overall growth in revenues of your Company. S.L., Holiday Club Canarias Sales & Marketing S.L., Holiday
Club Canarias Resort Management S.L., Saariselkä Resort Oy,
Tech Mahindra Limited (TML), the Company’s Flagship Company Kiinteistö Oy Jalomella, Kiinteistö Oy Outapalas, Kiinteistö
in the IT Sector, has reported a consolidated revenue of Oy Ulkuvuoma, Holiday Club Rus LLC, Suomen Vapaa-
Rs. 26,494 crores in the current year as compared to Rs. 22,621 aikakiinteistöt Oy LKV, Kiinteistö Oy Himos Gardens, Himos
crores in the previous year, an increase of 17%. Its consolidated Hillside Golf Oy, Kiinteistö Oy Himoksen Tähti 2, Sallan
profit after tax is Rs. 3,118 crores as compared to Rs. 2,628 Tunturipalvelut Oy, Kiinteistö Oy Tunturinrivi, Kiinteistö
crores in the previous year, an increase of 19%. Oy Pisterinniementie 2, Holiday Club Katinkullan Villas Oy,
The Group’s finance company, Mahindra & Mahindra Financial Kiinteistö Oy Vanha Ykköstii, Kiinteistö Oy Katinkullan Villas
Services Limited (Mahindra Finance), reported a total Parkki, Kiinteistö Oy Katinnurkka, Kiinteistö Oy Katinpalsta,
consolidated income of Rs. 6,554 crores during the current year Kiinteistö Oy Tenetinlahti, Kiinteistö Oy Mällösniemi,
as compared to Rs. 6,021 crores in the previous year, a growth Holiday Club Golf Saimaa Oy, Kiinteistö Oy Rauhan Ranta 1,
of 9%. The consolidated profit after tax for the year is Rs. 772 Kiinteistö Oy Rauhan Ranta 2, Kiinteistö Oy Rauhan Ranta 6,
crores as compared to Rs. 913 crores in the previous year. Kiinteistö Oy Rauhan Parkki, Saimaan Palvelukiinteistöt Oy,
Kiinteistö Oy Paviljongin Pysäköinti, Kiinteistö Oy Tiurunniemi,
Mahindra Lifespace Developers Limited (MLDL), the
Kiinteistö Oy Rauhan Liikekiinteistöt 1, Saimaa Action Park Oy,
Group’s subsidiary in the business of real estate and
Supermarket Capri Oy, Kiinteistö Oy Kylpyläntorni 1, Kiinteistö
infrastructure registered a consolidated operating income
Oy Lappeenrannan Saimaan Kreivi, Kiinteistö Oy Spa Lofts 2,
of Rs. 826 crores as compared to Rs. 1,086 crores in
Kiinteistö Oy Spa Lofts 3, Kiinteistö Oy Kulennoinen, Kiinteistö
the previous year. The consolidated profit after tax for
Oy Kuusamon Pulkkajärvi 1, Kongressi- ja Kylpylähotelli Caribia
the year is Rs. 93 crores as compared to Rs. 266 crores in the
Oy, Caribia Service Oy, Oü Holiday Club Tallinn, Kiinteistö
previous year.
Oy Hakan Perusyhtiö 79, HCR Management Oy, Finland,
Mahindra Holidays & Resorts India Limited, the Group’s Marvel Solren Private Limited, Astra Solren Private Limited,
subsidiary in the business of timeshare registered a Orizonte Business Solutions Limited, Airvan10 Pty Ltd., Holiday
consolidated operating income of Rs. 1,599 crores as compared Club Sport and Spa AB (formerly known as Visionsbolaget
to Rs. 812 crores in the previous year, an increase of 97%. The 10088 AB), Gateway Housing Company Limited, Mahindra
consolidated profit after tax for the year is Rs. 99 crores as International UK Ltd., SY Auto Capital Co., Ltd., MachinePulse
compared to Rs. 81 crores in the previous year, an increase Tech Private Limited, Are Semesterby A, Are Semesterby B, Are
of 22%. Semesterby C, Are Semesterby D, Are Villas 1 Ab, Are Villas
Ssyangyong Motor Company (SYMC), the Korean subsidiary of 2 Ab and Saimaa Gardens Arena Oy became subsidiaries of
the Company has reported consolidated revenues of Rs. 19,647 your Company.
crores in the current fiscal year as compared to Rs. 18,466 crores Subsequent to the year end, Trringo.com Limited and Mahindra
in the previous year, a growth of 6%. The consolidated loss West Africa Limited became subsidiaries of your Company.
after tax for the year is Rs. 177 crores as compared to Rs. 715
crores in the previous year. During the year under review, Mahindra Business & Consulting
Services Private Limited, Kiinteistö Oy Lappeenrannan Saimaan
The consolidated group profit after tax after minority interest
Kreivi, Saariselkä Resort Oy, Himos Hillside Golf Oy, Kiinteistö Oy
before exceptional items for the year is Rs. 3,206 crores as
Pisterinniementie 2, Holiday Club Katinkullan Villas Oy, Kiinteistö
against Rs. 2,863 crores in the previous year – a growth of
Oy Katinpalsta, Saimaan Palvelukiinteistöt Oy, Kiinteistö Oy
12%. The consolidated profit after tax after minority interests
Paviljongin Pysäköinti, Kiinteistö Oy Hakan Perusyhtiö 79,
and exceptional items for the year is Rs. 3,211 crores as against
Kiinteistö Oy Rauhan Ranta 6, Kiinteistö Oy Rauhan Parkki,
Rs. 3,137 crores in the previous year.
Oü Holiday Club Tallinn, Swaraj Automotives Limited, Divine
During the year under review, Divine Solren Private Limited, Heritage Hotels Private Limited, Competent Hotels Private
Neo Solren Private Limited, Mahindra Water Utilities Limited, Limited, Holiday on Hills Resorts Private Limited, Kiinteistö Oy

24 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Jalomella, Kiinteistö Oy Outapalas, Kiinteistö Oy Ulkuvuoma, Solutions Limited (“MASL”, earlier known as Mahindra
Kiinteistö Oy Kulennoinen, Kongressi– ja Kylpylähotelli Caribia Shubhlabh Services Limited) for an aggregate cash consideration
Oy, Saimaa Action Park Oy, Holiday Club Golf Saimaa Oy, Sallan of Rs. 260.06 crores. MASL became a wholly owned subsidiary
Tunturipalvelut Oy and Kiinteistö Oy Katinkullan Villas Parkki of the Company during the year under review. MASL would
ceased to be subsidiaries of your Company. provide an opportunity to fully leverage the potential that
this business offers and thus function as an end to end
During the year under review, Mriyalguda Farm Solution
provider in the Agri value chain. Post this consolidation,
Limited has changed its name to Mahindra eMarket Limited,
MASL would house the businesses viz. Crop Care, Seeds, Pulses,
Mahindra EPC Services Private Limited has changed its name
Dairy, Edible Oil, Seed Potato (held through a joint venture
to Mahindra Susten Private Limited, Mahindra Offgrid
company named Mahindra HZPC Private Limited), Fruits (in
Services Private Limited has changed its name to Mahindra
MASL and through a joint venture company named Mahindra
Renewables Private Limited, Mega One Stop Farm Services
Univeg Private Limited). The micro irrigation business, EPC
Limited has changed its name to Orizonte Business Solutions
Industrié Limited, shall continue to remain a direct subsidiary of
Limited, Mahindra Shubhlabh Services Limited has changed its
the Company.
name to Mahindra Agri Solutions Limited, Mahindra Punjab
Tractors Private Limited has changed its name to Auto Digitech Acquisition of 35% stake in Sampo Rosenlew Oy, Finland
Private Limited and Mahindra Racing s.r.l. has changed its
name to Mahindra Racing S.P.A. In line with the vision of the Farm Equipment Sector to become
a global full line player in the agriculture machinery space and
During the year under review, Mahindra Heavy Engines Private
to deliver “Farm Tech Prosperity”, your Company signed a
Limited, Mahindra Reva Electric Vehicles Private Limited and
definitive agreement on 31st March, 2016, for acquiring a 35%
Mahindra Namaste Private Limited were converted into
stake in Sampo Rosenlew Oy (“Sampo”) for a consideration not
Public Limited companies and accordingly, their names were
exceeding Euro 18 million, subject to customary adjustments,
changed to Mahindra Heavy Engines Limited, Mahindra Reva
on closing. The transaction is expected to close on or before
Electric Vehicles Limited and Mahindra Namaste Limited
30 th September, 2016. Sampo’s main products are combine
respectively.
harvesters and forest harvesters with combine harvesters
During the year under review, Mitsubishi Mahindra Agricultural accounting for nearly 70% of its net sales. For the year ended
Machinery Co. Ltd., became a Joint Venture of your Company. September, 2015, Sampo had a stand-alone revenue of Euro 93
million. It is also a joint venture partner in a combine harvester
A Report on the performance and financial position of each
company in Algeria which had revenues of Euro 45 million for
of the subsidiaries, associates and joint venture companies
the year ended December, 2015. Sampo has built significant
included in the Consolidated Financial Statement is provided
business in its core markets of Europe, Eurasian countries and
in Form AOC-1 and forms part of this Annual Report.
North Africa. Together with its existing strategy in the core
The Policy for determining material subsidiaries as approved by markets, Sampo will also develop a new range of combine
the Board is uploaded on the Company’s website and can be harvesters for developing markets and for specialty crops.
accessed at the Web-link: http://www.mahindra.com/resources/ Your Company and Sampo will jointly focus on the combine
investor-reports/FY16/Annual Reports/Links-AnnualReport.zip harvester business in Asia, Africa and Eurasian Economic Union
countries.

C. JOINT VENTURES, ACQUISITIONS AND Sale of your Company’s 71.19% stake in Swaraj Automotives
OTHER MATTERS Limited (SAL)
Consolidation of Agri Business under Mahindra Agri Solutions
With an endeavour to divest its non-core investments,
Limited (MASL)
during the financial year under review, your Company sold of
The Agri Business of your Company had reached a critical its entire holding of 17,06,925 shares in Swaraj Automotives
mass. In order to enable the organization to focus on the Limited to b4S Solutions Private Limited at a per share price
Agri business, your Company entered into a Business Transfer of Rs. 145.5 per share i.e. for an overall consideration of
Agreement to transfer its Agri business to Mahindra Agri Rs. 24.8 crores.

Mahindra & Mahindra Limited 25

Acquisition of controlling stake in Pininfarina S.p.A controls are audited by Internal Audit and their findings and
On 14th December, 2015, your Company and Tech Mahindra recommendations are reviewed by the Audit Committee which
Limited, an associate of your Company has signed an ensures the implementation.
agreement to acquire a controlling stake in Pininfarina S.p.A Your Company has in place adequate internal financial controls
(“Pininfarina”), a leading Italian automotive design and with reference to the Financial Statements commensurate
engineering services company which provides services to global with the size, scale and complexity of its operations. Such
automotive manufacturers such as Fiat, BMW, PSA and others controls have been assessed during the year under review
apart from your Company. taking into consideration the essential components of
internal controls stated in the Guidance Note on Audit of
As per the agreement, your Company and Tech Mahindra
Internal Financial Controls over Financial Reporting issued by
would purchase 76.06% of Pininfarina shares from Pincar S.r.L.
The Institute of Chartered Accountants of India. Based on
for a consideration of Euro 25.3 million at a price of Euro 1.1
the results of such assessments carried out by Management,
per share. This investment would be made by PF Holdings B.V., no reportable material weakness or significant deficiencies
a Joint Venture Company (“JVCo”), held 60% by Tech Mahindra in the design or operation of internal financial controls was
and 40% by your Company. observed. Nonetheless your Company recognizes that any
Subsequent to the aforesaid acquisition, the JVCo would launch internal control framework, no matter how well designed,
an open offer to acquire the balance 23.94% of Pininfarina’s has inherent limitations and accordingly, regular audits and
review processes ensure that such systems are reinforced on an
stake held by public shareholders at Euro 1.1 per share.
ongoing basis.

D. INTERNAL FINANCIAL CONTROLS

Indian Accounting Standards (IND AS) – IFRS Converged
The Corporate Governance Policies guide the conduct of Standard
affairs of your Company and clearly delineates the roles,
Your Company would adopt Indian Accounting Standards
responsibilities and authorities at each level of its governance
(“Ind AS”) for the accounting periods beginning on 1st April,
structure and key functionaries involved in governance. The 2016 pursuant to Ministry of Corporate Affairs Notification
Code of Conduct for Senior Management and Employees dated 16th February, 2015 notifying the Companies (Indian
of your Company (“the Code of Conduct”) commits Accounting Standard) Rules, 2015.
Management to financial and accounting policies, systems and
processes. The Corporate Governance Policies and the Code of E. MANAGEMENT DISCUSSION AND ANALYSIS
Conduct stand widely communicated across your Company at REPORT
all times. A detailed analysis of your Company’s performance is discussed
Your Company’s Financial Statements are prepared on the basis in the Management Discussion and Analysis Report, which
forms part of this Annual Report.
of the Significant Accounting Policies that are carefully selected
by Management and approved by the Audit Committee and
the Board. These Accounting policies are reviewed and updated
F. CONTRACTS OR ARRANGEMENTS WITH
from time to time.
RELATED PARTIES
All Related Party Transactions entered during the year were
Your Company uses SAP ERP Systems as a business enabler
in the Ordinary Course of Business and on Arms Length basis.
and also to maintain its Books of Account. The transactional During the year under review, your Company had entered into
controls built into the SAP ERP systems ensure appropriate Material Related Party Transactions, i.e. transactions exceeding
segregation of duties, appropriate level of approval ten percent of the annual consolidated turnover as per the
mechanisms and maintenance of supporting records. The last audited financial statements, with Mahindra Vehicle
Information Management Policy reinforces the control Manufacturers Limited, a wholly owned subsidiary of your
environment. The systems, Standard Operating Procedures Company. These transactions too were in the Ordinary Course
and controls are reviewed by Management. These systems and of Business of your Company and were at Arms Length Basis,

26 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

details of which, as required to be provided under section The Secretarial Audit Report does not contain any qualification,
134(3)(h) of the Companies Act, 2013 are disclosed in Form reservation or adverse remark.
AOC-2 as Annexure I and forms part of this Annual Report.
Cost Auditors
The policy on Related Party Transactions as approved by the
The Board had appointed Messrs N. I. Mehta & Co., Cost
Board is uploaded on the Company’s website and can be
Accountants (Firm Registration Number 000023), as Cost
accessed at the Web-link: http://www.mahindra.com/resources/
Auditor for conducting the audit of cost records of the
investor-reports/FY16/Annual Reports/Links-AnnualReport.zip
Company for the Financial Year 2015-16.

G. AUDITORS The Board of Directors on the recommendation of the

Audit Committee, appointed Messrs D. C. Dave & Co., Cost
Statutory Auditors and Auditors’ Report Accountants (Firm Registration Number 000611), as the Cost
Messrs Deloitte Haskins & Sells, Chartered Accountants (ICAI Auditors of the Company for the Financial Year 2016-17 under
Registration No. 117364W) were re-appointed as the Statutory section 148 of the Companies Act, 2013. Messrs D. C. Dave &
Auditors of the Company to hold office from the conclusion of Co. have confirmed that their appointment is within the limits
the 68th Annual General Meeting (AGM) held on 8th August, of section 141(3)(g) of the Companies Act, 2013 and have also
2014 until the conclusion of the third consecutive AGM of the certified that they are free from any disqualifications specified
Company to be held in the year 2017 (subject to ratification of under section 141(3) and proviso to section 148(3) read with
their appointment by the Members at every AGM held after section 141(4) of the Companies Act, 2013.
the AGM held on 8th August, 2014).
The Audit Committee has also received a Certificate from the
As required under the provisions of section 139(1) of the Cost Auditors certifying their independence and arms length
Companies Act, 2013, the Company has received a written relationship with the Company.
consent from Messrs Deloitte Haskins & Sells, Chartered As per the provisions of the Companies Act, 2013, the
Accountants to their appointment and a Certificate, to the remuneration payable to the Cost Auditor is required to be
effect that their appointment, if made, would be in accordance placed before the Members in a General Meeting for their
with the Companies Act, 2013 and the Rules framed thereunder ratification. Accordingly, a Resolution seeking Members’
and that they satisfy the criteria provided in section 141 of the ratification for the remuneration payable to Messrs D. C. Dave
Companies Act, 2013. & Co., Cost Auditors is included in the Notice convening the
Annual General Meeting.
The Members are requested to ratify the appointment
of the Statutory Auditors as aforesaid and fix their
Reporting of Frauds by Auditors
remuneration.
During the year under review, the Statutory Auditors, Cost
The Auditors’ Report is unmodified i.e. it does not contain any Auditors and Secretarial Auditor have not reported any
qualification, reservation or adverse remark. instances of frauds committed in the Company by its Officers
or Employees to the Audit Committee under section 143(12)
Secretarial Auditor of the Companies Act, 2013, details of which needs to be
Pursuant to the provisions of section 204 of the Companies Act, mentioned in this Report.
2013 and the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the Company has appointed
H. PARTICULARS OF LOANS, GUARANTEES,
Mr. Sachin Bhagwat, Practicing Company Secretary (Certificate
INVESTMENTS AND SECURITIES
of Practice Number: 6029) to undertake the Secretarial Audit
Particulars of the loans given, investment made or guarantee
of the Company.
given or security provided and the purpose for which the
The Company has annexed to this Board Report as loan or guarantee or security is proposed to be utilised by the
Annexure II, a Secretarial Audit Report given by the Secretarial recipient of the loan or guarantee or security are provided in
Auditor. Note Nos. 42, 13A and 13B to the Financial Statements.

Mahindra & Mahindra Limited 27

I. PUBLIC DEPOSITS AND LOANS/ADVANCES under the Mahindra & Mahindra Limited Employees Stock
Option Scheme 2010. No Stock Options have been granted to
Your Company had discontinued its Fixed Deposit Scheme
employees under the Mahindra & Mahindra Limited Employees
for 36 months with effect from the close of office hours on
Stock Option Scheme 2000.
31st January, 2014 and has also discontinued acceptance of
Fixed Deposits with effect from 1st April, 2014. The Company has in force the following Schemes which get
covered under the provisions of SEBI (Share Based Employee
Out of the previously accepted total of 2,417 deposits of
Benefits) Regulations, 2014 (“SBEB Regulations”):
Rs. 2,233.37 lakhs from the public and shareholders as at
31st March, 2016, 185 deposits amounting to Rs. 96.55 lakhs, 1. Mahindra & Mahindra Limited Employees Stock Option
had matured and had not been claimed as at the end of the Scheme – 2000 (2000 Scheme)
Financial Year. Since then, 67 of these deposits of the value of 2. Mahindra & Mahindra Limited Employees Stock Option
Rs. 47.81 lakhs have been claimed. Scheme – 2010 (2010 Scheme)

There was no default in repayment of deposits or payment of 3. M&M Employees Welfare Fund No. 1
interest thereon during the year under review. There are no 4. M&M Employees Welfare Fund No. 2
deposits which are not in compliance with the requirements of 5. M&M Employees Welfare Fund No. 3
Chapter V of the Companies Act, 2013.
There are no material changes made to the above Schemes and
The particulars of loans/advances, etc., required to be these Schemes are in compliance with the SBEB Regulations.
disclosed in the Annual Accounts of the Company pursuant Your Company’s Auditors, Messrs Deloitte Haskins & Sells, have
to Para A of Schedule V of the SEBI (Listing Obligations and certified that the Company’s above-mentioned Schemes have
Disclosure Requirements) Regulations, 2015 are furnished been implemented in accordance with the SBEB Regulations,
separately. and the Resolutions passed by the Members for the 2000
Scheme and the 2010 Scheme.
J. EMPLOYEES Information as required under the SBEB Regulations read
Key Managerial Personnel (KMP) with SEBI Circular CIR/CFD/POLICY CELL/2/2015 dated
16th June, 2015 have been uploaded on the Company’s website
The following have been designated as the Key Managerial
and can be accessed at the Web-link: http://www.mahindra.
Personnel of the Company pursuant to sections 2(51) and
com/resources/investorreports/FY16/Annual Reports/Links-
203 of the Companies Act, 2013 read with the Companies
AnnualReport.zip
(Appointment and Remuneration of Managerial Personnel)
Rules, 2014:
Particulars of Employees and related disclosures
(a) Mr. Anand G. Mahindra – Chairman & Managing Director
The Company had 484 employees who were in receipt of
(b) Dr. Pawan Goenka – Executive Director & Group President remuneration of not less than Rs. 60,00,000 during the year
(Auto and Farm Sector) ended 31st March, 2016 or not less than Rs. 5,00,000 per month
(c) Mr. V S Parthasarathy – Group CFO, Group CIO & President during any part of the year.
(Group Finance and M&A) Disclosures with respect to the remuneration of Directors,
(d) Mr. Narayan Shankar – Company Secretary KMPs and employees as required under section 197(12) of the
There has been no change in the KMPs during the year under Companies Act, 2013 read with Rule 5(1) of the Companies
review. (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 are given in Annexure III to this Report.
Employees’ Stock Option Scheme Details of employee remuneration as required under provisions
During the year under review, on the recommendation of the of section 197(12) of the Companies Act, 2013 read with
Governance, Nomination and Remuneration Committee of your Rule 5(2) & 5(3) of Companies (Appointment and Remuneration
Company, the Trustees of Mahindra & Mahindra Employees’ of Managerial Personnel) Rules, 2014 are available at the
Stock Option Trust have granted Stock Options to employees Registered Office of the Company during working hours,

28 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

21 days before the Annual General Meeting and shall be made Proactive and employee-centric shop floor practices, a focus
available to any Shareholder on request. Such details are on transparent communication of business goals, an effective
also available on your Company’s website and can be accessed concern resolution mechanism, and the firm belief that
at the Web-link: http://www.mahindra.com/resources/investor- employees are the most valuable assets of the Company, are the
reports/FY16/Annual Reports/Links-AnnualReport.zip cornerstone of the Company’s employee relations approach.
An ‘open door policy’ and constant dialogue to create win-
Industrial Relations win situations, have helped the Company to build trust and
The year under review has witnessed a very positive Industrial harmony. The Industrial Relations scenario continued to be
Relations Scenario across all manufacturing locations for the largely positive across all the Mahindra Automotive and Tractor
Automotive and Farm Equipment Sectors. Manufacturing locations. Bonus settlements were reached
The Company’s focus continues towards propagating proactive amicably at all locations. All this resulted in zero production
and employee centric practices. The Transformational Work loss in the Financial Year 2015-16 and helped create a peaceful,
Culture initiative which aims to create an engaged workforce healthy and collaborative work environment.
and an innovative, productive and competitive shop-floor
ecosystem, continues to grow in strength. The Transformational Safety, Occupational Health and Environment
Work Culture Committee (TWCC) continually engages with The Safety & Occupational Health of its employees is embedded
long-term strategic initiatives which range from anticipated as part of the organisational core values of the Company.
Labour Law reforms to ‘Swachh Bharat Abhiyaan’. Some The Safety, Occupational Health & Environmental Policy
examples of the programs put in place are Rise for Associates, (SH&E Policy), inter alia, covers and ensures safety of public,
Industrial Relations Skills for Frontline Officers, Cultural employees, plant and equipment, ensures compliance on a
Diagnostics Projects, e-Compliance and Code of Conduct for monthly basis by developing e-compliance systems and imparts
Associates. training through e-learning modules on Safety, Sustainability
In order to develop skills and foster togetherness at the & Prevention of Sexual Harassment to all its employees.
workplace, multiple training and engagement programs were Your Company has a well-established SH&E Policy in line with
rolled out. These training programs covered a wide range the National Safety, Occupational Health & Environmental
of topics, including Positive Attitude, Stress Management, Policy. The Company Policy has been further drilled down,
Creativity, Team Effectiveness, Safety and Environment, through the Policy for Automotive and Farm Sectors, followed
Quality Tools, Total Productive Maintenance, Dexterity, skill by the respective Plant Policy. Each Plant has displayed
building programs and Technical Training. The Mahindra and communicated the SH&E Policy to all its stakeholders.
Skill Excellence Initiative is a holistic approach to enhance Objectives and targets derived from the new amended SH&E
the skill and capabilities of shop-floor employees and the Policy are supported by focussed management programs,
participation from associates across manufacturing facilities safety i4, safety Kaizens and mistake proofing projects. Your
has increased from 1,800 of last year to 2,300 this year. The Company demonstrates a strong leadership commitment
initiative brought laurels to the Company and the Nation towards Safety, Occupational Health and Environment and
by registering 7th rank at World Skill Competition held at as a part of the same, multiple measures and actions are
Brazil last year. implemented with the thorough competency training programs
During the year under review your Company’s shop floor i.e. Working on height, Gas cutting and welding, Forklift
associates generated about 17.5 ideas per person towards driving in line to reduce operational risk by implementing
resolving quality concerns, reducing cost, ensuring safety and adequate precautionary measures. Safety Observation Tours,
improving productivity, resulting into whopping cost saving of Plant Officers observations, safety ideas through i4, focused
Rs. 26 crores cumulative for 2 years. safety Kaizens and mistake proofing projects i.e. Poka Yoke’s
were undertaken during the year under review.
Significant emphasis has also been put on creating awareness
about health and wellness of employees through annual At each Plant location, annual events are organised and
medical check-ups, medical software, health awareness commemorated like Road Safety Week, National Safety Day/
activities and introduction of diet food. Week and Fire Service Day, Safety Audits/Inspections, etc.

Mahindra & Mahindra Limited 29

Safety Culture building is demonstrated in your Company helps in continually improving emissions, ambient air quality,
through Safety Crusade, Levers of Excellence and Waste reducing water pollution, recycling water consumption and
to Wealth programs in the Manufacturing domain. Safety, minimising waste from its processes. Its nature of operations
Occupational Health awareness training with benchmarks have a low environmental impact due to the implementation of
on overall Safety and Occupational Health performance are the Environment Management System wherein a healthy work
conducted. All stakeholders are covered as per the training environment is provided to its employees and environment
calendar through e-learning modules. Statutory safety Risk friendly businesses are conducted. Besides, to bring cross
audits of its facilities are periodically carried out by absorbing cultural sensitivity of the Company’s business associates,
all new amended legal requirements. Internally developed promotional activity towards increasing the awareness on
e-module for Health recording on regular internal and Green Supply Chain Management in the vendor community
external medical and occupational check-up of your Company’s and support by conducting suppliers risk assessment have also
employees, associates and health-friendly sustainable activities progressed.
are promoted as part of this Policy.
Implementation of Safety, Occupational Health & Environment
Your Company’s Plants continued their commitment to improve Management System Standard (SHEMS) has been re-enforced
the wellbeing of its employees and contract workmen by by way of a re-certification process towards the Company’s
establishing Health and Wellness Goals by organising physical commitment of Safety, Occupational Health and Environment
fitness activities like Yoga, Zumba, Occupational Health to the highest levels. OHSAS 18001: 2007 & EMS ISO 14001:
Examination Camps, Blood Donation Camps, medical check- 2004 is the existing best practice. The SHEMS aims to eliminate
ups, consultation and counselling. Further, World Health Day, or minimise risk and environmental impact as well as impact
World Heart Day, World Kidney Day and World Diabetes Day on employees and other stakeholders who may be exposed
are celebrated including Health Audits/Inspection along with to Occupational health and Safety risks and environmental
Way 2 Wellness sessions covering topics i.e. “Healthy Heart”, impact associated with its activities. Though Sustainable
Diabetes, etc. development is percolated across the Division as well as in
Various path breaking projects have been implemented by your Sectors through horizontal deployment by sharing of industries
Company like renewable energy management programs in the internal as well as external best practices, Senior Management
areas of Air Pollution Management, Water and Waste Water is also involved in sharing and investigation of internal as well
Management, Solid Waste Management and new techniques as external injuries by a forum called Safety@ Plant. Senior
to grow Go Green Developments have been undertaken. Management also monitors Plant Safety performance through
weekly theme based safety reviews, monthly reviews of Sector
World Environment Day, World Earth Day, World Water Day
Safety performance and quarterly reviews of President’s
and Energy Conservation Week and Water Conservation Week
balance score card in the field of Safety, Occupational Health
are also observed on an annual basis. Through stakeholders’
& Environment by achieving targets and improving year on
engagement and employees’ involvement, your Company
year performance.
demonstrates its road map with benchmarks and revised
targets on the fundamentals of triple bottom line i.e. Planet,
People and Profit. K. BOARD & COMMITTEES

Certifications/Recertifications Directors
All Plants of the Automotive Division have been recertified As mentioned in the previous Annual Report, Mr. Bharat Doshi
with standard for ISO 14001: 2004 & OHSAS 18001: 2007. desired to relinquish his position as a Director, and accordingly
Your Company’s commitment to environment stems from the ceased to be a Director of your Company with effect from
Mahindra Group’s abiding concern for engagement with various the conclusion of the 69th Annual General Meeting held on
stakeholders and Society at large. Sustainability Reporting 7th August, 2015.
System of adopting GRI, G3 to G4 Guidelines framework for Mr. S. B. Mainak retires by rotation and, being eligible, offers
your Company’s Safety, Health & Environmental initiatives, himself for re-appointment at the 70 th Annual General Meeting
monthly reviewed objectives and targets in operations review, of the Company scheduled to be held on 10 th August, 2016.

30 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

The Company has received declarations from all the The Policies mentioned at (a) and (b) above are attached as
Independent Directors of the Company confirming that they Annexure IV-A and IV-B respectively and form part of this
meet the criteria of independence as prescribed both under Report.
the Companies Act, 2013 and SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015. Directors’ Responsibility Statement
Pursuant to the provisions of the Companies Act, 2013 and Pursuant to section 134(5) of the Companies Act, 2013,
the SEBI (Listing Obligations and Disclosure Requirements) your Directors, based on the representations received
Regulations, 2015, the Board has carried out an annual from the Operating Management, and after due enquiry,
evaluation of its own performance and that of its Committees confirm that:
as well as performance of the Directors individually. Feedback (a) in the preparation of the annual accounts for the Financial
was sought by way of a structured questionnaire covering Year ended 31st March, 2016, the applicable accounting
various aspects of the Board’s functioning such as adequacy standards have been followed;
of the composition of the Board and its Committees, Board
(b) they had in consultation with Statutory Auditors, selected
culture, execution and performance of specific duties,
accounting policies and applied them consistently, and
obligations and governance and the evaluation was carried out
made judgments and estimates that are reasonable and
based on responses received from the Directors.
prudent so as to give a true and fair view of the state of
A separate exercise was carried out by the Governance, affairs of the Company as at 31st March, 2016 and of the
Nomination and Remuneration Committee of the Board profit of the Company for the year ended on that date;
to evaluate the performance of individual Directors. The
performance evaluation of the Non-Independent Directors (c) they have taken proper and sufficient care for the
and the Board as a whole was carried out by the Independent maintenance of adequate accounting records in
Directors. The performance evaluation of the Chairman of the accordance with the provisions of the Companies Act,
Company was also carried out by the Independent Directors, 2013 for safeguarding the assets of the Company and for
taking into account the views of the Executive Director preventing and detecting fraud and irregularities;
and Non-Executive Directors. The Directors expressed their (d) they have prepared the annual accounts on a going
satisfaction with the evaluation process. concern basis;
The details of programs for familiarisation of the Independent (e) they have laid down adequate Internal Financial Controls
Directors with the Company, their roles, rights, responsibilities to be followed by the Company and such Internal Financial
in the Company, nature of the industry in which the Company Controls were operating effectively during the Financial
operates, business model of the Company, number of programs Year ended 31st March, 2016;
and number of hours spent by each Independent Director in
(f) they had devised proper systems to ensure compliance
terms of the requirements of SEBI (Listing Obligations and
with the provisions of all applicable laws and that
Disclosure Requirements) Regulations, 2015 are available
such systems were adequate and operating effectively
on the Company’s website and can be accessed at the Web-
throughout the Financial Year ended 31st March, 2016.
link: http://www.mahindra.com/resources/investor-reports/FY16/
Annual Reports/Links-AnnualReport.zip
Board Meetings and Annual General Meeting
In line with the principles of transparency and consistency,
your Company has adopted the following Policies which, inter A calendar of Meetings is prepared and circulated in advance
alia, include criteria for determining qualifications, positive to the Directors.
attributes and independence of a Director: During the year 1st April, 2015 to 31st March, 2016,
(a) Policy on Appointment of Directors and Senior Management six Board Meetings were held on: 29th May, 2015,
and succession planning for orderly succession to the 7th August, 2015, 6th November, 2015, 21st December, 2015,
Board and the Senior Management; 12th February, 2016 and 29th March, 2016. The 69th Annual
(b) Policy for remuneration of the Directors, Key Managerial General Meeting (AGM) of the Company was held on
Personnel and other employees. 7th August, 2015.

Mahindra & Mahindra Limited 31

Meetings of Independent Directors Requirements) Regulations, 2015 forms part of the
The Independent Directors of your Company meet before Annual Report.
the Board Meetings without the presence of the Chairman During the year under review, your Company has been
& Managing Director or Executive Director or other Non- conferred the coveted Golden Peacock Award for Excellence
Independent Directors or Chief Financial Officer or any other in Corporate Governance by the Institute of Directors
Management Personnel. (IOD) and the National Award for Excellence in Corporate
Governance by the Institute of Company Secretaries of India.
These Meetings are conducted in an informal and flexible
Both these Awards validate your Company’s ‘Best-in-class’
manner to enable the Independent Directors to discuss
corporate governance practices and reflect on its transparent
matters pertaining to, inter alia, review of performance of
and ethical dealings with stakeholders across the entire
Non-Independent Directors and the Board as a whole, review
value chain.
the performance of the Chairman of the Company (taking
into account the views of the Executive and Non-Executive
Vigil Mechanism
Directors), review the performance of the Company, assess
the quality, quantity and timeliness of flow of information The Vigil Mechanism as envisaged in the Companies Act, 2013,
between the Company Management and the Board that is the Rules prescribed thereunder and the SEBI (Listing Obligations
necessary for the Board to effectively and reasonably perform and Disclosure Requirements) Regulations, 2015 is implemented
their duties. through the Company’s Whistle Blower Policy to enable the
Directors, employees and all stakeholders of the Company to
Five Meetings of Independent Directors were held during the report genuine concerns, to provide for adequate safeguards
year and these meetings were well attended. against victimisation of persons who use such mechanism
and make provision for direct access to the Chairman of the
Audit Committee Audit Committee.
The Committee comprises of four Directors viz. Mr. Deepak Whistle Blower Policy of your Company (revised in December,
S. Parekh (Chairman of the Committee), Mr. Nadir B. Godrej, 2015) is available on the Company’s website and can be
Mr. M. M. Murugappan and Mr. R. K. Kulkarni. All the Members accessed at the Web-link: http://www.mahindra.com/resources/
of the Committee are Independent Directors and possess investor-reports/FY16/Annual Reports/Links-AnnualReport.zip
strong accounting and financial management knowledge.
Further details are available in the Report on Corporate
The Company Secretary of the Company is the Secretary of
Governance that forms part of this Annual Report.
the Committee.

All the recommendations of the Audit Committee were The Sexual Harassment of Women at Workplace
accepted by the Board. (Prevention, Prohibition and Redressal) Act, 2013
The Company has in place an Anti-Sexual Harassment Policy
in line with the requirements of the Sexual Harassment
L. GOVERNANCE
of Women at Workplace (Prevention, Prohibition and
Corporate Governance Redressal) Act, 2013. Internal Complaints Committee (ICC)
has been set up to redress complaints received regarding
Your Company has a rich legacy of ethical governance
sexual harassment. All employees (permanent, contractual,
practices many of which were implemented by the Company,
temporary, trainees) are covered under this Policy. The Policy is
even before they were mandated by law. Your Company
gender neutral.
is committed to transparency in all its dealings and places
high emphasis on business ethics. A Report on Corporate During the year under review, 4 complaints with allegations
Governance along with a Certificate from the Statutory of sexual harassment were filed, all of which were
Auditors of the Company regarding compliance with the disposed-off as per the provisions of The Sexual Harassment of
conditions of Corporate Governance as stipulated under Women at Workplace (Prevention, Prohibition and Redressal)
Schedule V of the SEBI (Listing Obligations and Disclosure Act, 2013.

32 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Business Responsibility Report M. CORPORATE SOCIAL RESPONSIBILITY AND

The ‘Business Responsibility Report’ (BRR) of your Company RELATED MATTERS
for the year 2015-16 forms part of this Annual Report as Corporate Social Responsibility (CSR)
required under Regulation 34(2)(f) of the SEBI (Listing
Your Company’s Corporate Social Responsibility (CSR) efforts
Obligations and Disclosure Requirements) Regulations,
in the last financial year have been concentrated on initiatives
2015.
which contribute to nation building, and have in fact been
Your Company strongly believes that sustainable and inclusive identified as priorities in the national agenda. As per the
growth is possible by using the levers of environmental Company’s CSR Policy, it continues to focus its CSR efforts within
and social responsibility while setting aspirational targets the constituencies of girls, youth and farmers by innovatively
and improving economic performance to ensure business supporting them through programs designed in the domains
continuity and rapid growth. Your Company is committed of education, health and environment, while harnessing the
to leverage ‘Alternative Thinking’ to build competitive power of technology.
advantage in achieving high shareholder returns through
Your Company has an ongoing vibrant CSR program, of
customer centricity, innovation, good governance and
which some of the notable ongoing investments in education
inclusive human development while being sensitive to the
are Project Nanhi Kali, which supports the education of
environment.
underprivileged girls, Mahindra Pride Schools, which provide
livelihood training to youth from socially and economically
Risk Management disadvantaged communities, and a variety of scholarship
Your Company has a well-defined risk management framework programs, which range from providing opportunities to youth
in place. The risk management framework works at various from low income group families to undergo diploma courses
levels across the enterprise. These levels form the strategic at vocational education institutes, to allowing meritorious
defence cover of the Company’s risk management. The students to pursue their post graduate studies at reputed
Company has a robust Organisational structure for managing universities overseas. Your Company has also helped set up
and reporting on risks. a premier Engineering institution ‘Mahindra École Centrale’
(MEC) in Hyderabad, in partnership with Ecole Centrale,
Your Company has constituted a Risk Management Committee
Paris and the Jawaharlal Nehru Technological University,
of the Board which is authorised to monitor and review risk
Hyderabad. In the area of public health, your Company
management plan and risk certificate. The Committee is also
sponsored Lifeline Express trains, through which medical
empowered, inter alia, to review and recommend to the Board
care and treatment was provided to communities who do
the modifications to the Risk Management Policy. Further, the
not have access to any medical facilities. Your Company also
Board has constituted a Corporate Risk Council comprising the
contributes to the environment by adding green cover through
Senior Executives of the Company. The terms of reference of
planting of over a million trees every year through Project
the Council comprises review of risks and Risk Management
Hariyali. Further, your Company has helped support small
Policy on periodic intervals.
and marginal farmers by training them in effective farming
Your Company has developed and implemented a Risk practices including soil health, crop planning, creating model
Management Policy which is approved by the Board. The farms with bio-dynamic farming practices, thereby increasing
Risk Management Policy, inter alia, includes identification crop productivity, through the Wardha Family Farming Project,
therein of elements of risk, including those which in the Krishi Mitra and Integrated Watershed Development Project.
opinion of the Board may threaten the existence of the Your Company supported the Prime Minister’s Swachh Bharat
Company. Risk management process has been established Swachh Vidyalaya program by constructing 4,340 toilets
across the Company and is designed to identify, assess and primarily for girls in Government Schools in Financial Year
frame a response to threats that affect the achievement of 2014-15, which the Company is maintaining for a period
its objectives. Further, it is embedded across all the major of 12 months, and in addition, built another 1,170 toilets in
functions and revolves around the goals and objectives of the Financial Year 2015-16. Your Company is also building 8 blocks
organisation. of public toilets in Delhi through a Confederation of Indian

Mahindra & Mahindra Limited 33

Industries initiative. In addition, your Company has a strong This panel comprising of five heads of state and five CEOs,
community of employees who volunteer through the ESOPs (“global ambassadors” for Carbon pricing and climate action)
(Employee Social Options) platform. will assemble virtually to catalyze action towards putting an
effective price on Carbon at the national and local level, and
CSR Policy in businesses.
The Corporate Social Responsibility Committee had
Your Company is the first Indian Company to sign the new
formulated and recommended to the Board, a Corporate
initiative called EP 100 to increase energy productivity which
Social Responsibility Policy (“CSR Policy”) which was
is developed and administered by The Climate Group. EP 100
subsequently adopted by it and is being implemented by
is a global campaign to encourage the world’s most influential
the Company. The CSR Policy including a brief overview of
businesses to commit to doubling their energy productivity –
the projects or programs proposed to be undertaken can be
which means getting more economic output from each unit of
accessed at the Company’s website through the Web-link:
energy input.
http://www.mahindra.com/resources/investor-reports/FY16/
Annual Reports/Links-AnnualReport.zip During the year under review, your Company signed
Memorandum of Understanding with Institute of Sustainable
CSR Committee Communities to create a Training Centre on Environment,
The CSR Committee comprises of Dr. Vishakha N. Desai Health and Safety for suppliers to the Company and also to
(Chairperson), Mr. Anand G. Mahindra, Mr. R. K. Kulkarni, other Original Equipment Manufacturers (OEMs).
Dr. Pawan Goenka and Mr. Vikram Singh Mehta. The The Sustainability performance for your Company for the
Committee, inter alia, monitors the CSR activities. Financial Year 2015-16 will be elaborated in detail in the
During the year under review, your Company spent GRI Report which is under preparation and will be ready for
Rs. 85.90 crores on CSR activities. The amount equal to 2% release shortly.
of the average net profit for the past three financial years Your Company was recognized for its consistent performance
required to be spent on CSR activities was Rs. 84.95 crores. on the ESG dimensions during the year under review, by
The detailed Annual Report on the CSR activities undertaken way of:
by your Company in Financial Year 2016, is annexed herewith
• Receiving Sustainable Plus Platinum Label for Financial
marked as Annexure V.
Year 2015 from CII-CESD;
Sustainability Initiatives • Receiving ‘Excellence in Sustainable Supply Chain Award
During the year under review, the 8 Sustainability Report for
th
2015’ in the CII-ITC Sustainability Awards;
the year 2014-15 was released and like earlier seven years this
• Ranking first in CSR in ‘The Best Companies for CSR’ study
Report was also externally assured by KPMG with GRI checked
conducted by The Economic Times (Futurescape and IIM
application level A+.
Udaipur);
Your Company retained the focus on the Environmental, Social
• Receiving ‘Golden Peacock Award for Risk Management’
and Governance (ESG) parameters, on its journey towards
from the Institute of Directors;
“Sustainability” in the year under review by consolidating the
initiatives of the previous years and initiating fresh ones. The • Retaining the status of getting listed on the Dow Jones
Enterprise Risks framework was reviewed to include climate Sustainability Index – 2015 under the ‘Emerging Market
change risks to the business. The bio-diversity assessments Index’ for the consecutive third year with improvement in
have been initiated to further the actions on the India Business percentile scores;
and Bio-diversity Initiative (IBBI). • Retaining its position in the top 10 in the India 200 Carbon
Mr. Anand Mahindra, Chairman and Managing Director of Disclosure Leadership Index 2015;
your Company was invited on the Global Leadership Panel • The Mahindra Group Sustainability Report was shortlisted
on Carbon Pricing convened by World Bank Group President amongst the finalists of Asia Sustainability Reporting
Jim Yong Kim and IMF Managing Director Christine Lagarde. Awards by CSR Works.

34 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Conservation of Energy, Technology Absorption and In view of the above, the Board of Directors of your Company
Foreign Exchange Earnings and Outgo at its Meeting held on 30th May, 2016, decided to appoint
The information pertaining to conservation of energy, Messrs Karvy Computershare Private Limited, as the Registrar
technology absorption, foreign exchange earnings and & Share Transfer Agents with effect from 13th June, 2016.
outgo as required under section 134(3)(m) of the Companies Accordingly, a Resolution seeking your consent for keeping the
Act, 2013 read with Rule 8(3) of the Companies (Accounts) Register and Index of Members and Returns at the office of
Rules, 2014 is furnished in Annexure VI and is attached to Messrs Karvy Computershare Private Limited is included in the
this Report. Notice convening the Annual General Meeting.

Your Company is committed to protecting the interests of

its Shareholders and has taken necessary steps as per the
N. SECRETARIAL
provisions of law for the same.
Share Capital
GENERAL
The issued, subscribed and paid-up Share Capital of the
Company stood at Rs. 310.55 crores as at 31st March, 2016 The Chairman & Managing Director of the Company did not
comprising of 62,10,92,384 Ordinary (Equity) Shares of Rs. 5 receive any remuneration or commission from any of the
each fully paid-up. There was no change in Share Capital subsidiary of your Company. The Whole Time Director of
during the year under review. the Company did not receive any commission from any of
its subsidiaries and has not exercised ESOPs of subsidiaries
of the Company during the year, which were granted in the
Extract of Annual Return
earlier year(s).
Pursuant to section 134(3)(a) and section 92(3) of the
Companies Act, 2013 read with Rule 12(1) of the Companies Your Directors state that no disclosure or reporting is required
(Management and Administration) Rules, 2014, an in respect of the following items as there were no transactions/
extract of the Annual Return as on 31st March, 2016 in events on these items during the year under review:
Form No. MGT-9 is attached herewith as Annexure VII and 1. Issue of equity shares with differential rights as to
forms part of this Report. dividend, voting or otherwise.
2. Issue of Shares (Including Sweat Equity Shares) to
Amendment to the Articles of Association of the
employees of the Company under any Scheme save and
Company
except ESOS referred to in this Report.
At the Sixty-Ninth Annual General Meeting held on 7th August,
2015, based on the approval of the Members, the Company 3. Significant or material orders passed by the Regulators or
adopted new Articles of Association which had been Courts or Tribunals which impact the going concern status
streamlined and aligned with the Companies Act, 2013 and and the Company’s operation in future.
Rules made thereunder. 4. Voting rights which are not directly exercised by the
employees in respect of shares for the subscription/
Appointment of M/s. Karvy Computershare Private
purchase of which loan was given by the Company (as
Limited (“Karvy”) as the Registrar & Share Transfer
there is no scheme pursuant to which such persons can
Agent of your Company
beneficially hold shares as envisaged under section 67(3)
The Securities and Exchange Board of India (“SEBI”) had vide (c) of the Companies Act, 2013).
its Ex-Parte Ad Interim Order No. WTM/RKA/MIRSD2/41/2016
dated 22nd March, 2016, inter alia, advised clients of Sharepro
For and on behalf of the Board
Services (India) Private Limited (“Sharepro”) to carry out/
switchover their activities related to registrar to an issue and
share transfer agent, either in-house or through another ANAND G. MAHINDRA
registrar to an issue and share transfer agent registered Chairman & Managing Director
with SEBI. Mumbai, 30 th May, 2016

Mahindra & Mahindra Limited 35

ANNEXURE I
Form No. AOC–2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in
sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arms length basis—

There were no contracts or arrangements or transactions entered into during the year ended 31st March, 2016, which were not
at arms length basis.

2. Details of material contracts or arrangement or transactions at arms length basis—

The details of material contracts or arrangements or transactions at arms length basis for the year ended 31st March, 2016 are
as follows:

S r. Name(s) of the Nature of transactions Transactions Duration of Salient terms of Date of approval Amount paid
No related party Value transactions transactions by the board in advance
& Nature of (Rs. in Crores) (Rs. in Crores)
relationship
1. Mahindra Vehicle Discounting charges received 0.94 April 2015 – The related party Since these Nil
Manufacturers March 2016 transactions RPTs are in the
Purchase of Fixed Assets 0.14
Limited (MVML) (RPTs) entered ordinary course
Purchase of Goods 8,974.51 during the year of business and
(Wholly owned
were in the are at arms length
subsidiary of the Purchase of Services 271.44 ordinary course of basis, approval
Company)
Sale of Goods 810.66 business and on of the board is
arms length basis. not applicable.
Sale of Services 12.81 However, necessary
approvals were
Loan given 1,200.00
granted by the
Interest Income 23.63 Audit committee
from time to time.
Investment in equity shares 2,200.00

Dividend received 55.52

Sale of Fixed Assets 0.04

Reimbursement Received 11.19

Security Deposits Paid 0.02

Sale of Investments 3,677.51

TOTAL 17,238.41

For and on behalf of the Board

ANAND G. MAHINDRA
Chairman & Managing Director

Mumbai, 30 th May, 2016

36 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

ANNEXURE II
SECRETARIAL AUDIT REPORT
For the Financial Year ended 31st March, 2016

[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, (v) The following Regulations and Guidelines prescribed

The Members, under the Securities and Exchange Board of India Act, 1992
Mahindra & Mahindra Limited (‘SEBI Act’):
Gateway Building, Apollo Bunder
(a) The Securities and Exchange Board of India
Mumbai 400 001
(Substantial Acquisition of Shares and Takeovers)
I have conducted the Secretarial Audit of the compliance Regulations, 2011;
of applicable statutory provisions and the adherence to
(b) The Securities and Exchange Board of India (Prohibition
good corporate practices by Mahindra & Mahindra Limited
of Insider Trading) Regulations, 1992 and Securities
(hereinafter called “the Company”). Secretarial Audit was
and Exchange Board of India (Prohibition of Insider
conducted in a manner that provided me a reasonable basis
Trading) Regulations, 2015;
for evaluating the corporate conduct/statutory compliances
and expressing my opinion thereon. (c) The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations,
Based on my verification of the Company’s books, papers,
2009 (Not applicable to the Company during the
minute books, forms and returns filed and other records
Audit period);
maintained by the Company and also the information
provided by the Company, its officers, agents and authorised (d) The Securities and Exchange Board of India (Share
representatives during the conduct of secretarial audit, I Based Employee Benefits) Regulations, 2014;
hereby report that in my opinion, the Company has, during the (e) The Securities and Exchange Board of India (Issue and
audit period covering the financial year ended on 31st March, Listing of Debt Securities) Regulations, 2008;
2016, complied with the statutory provisions listed hereunder
(f) The Securities and Exchange Board of India (Registrars
and also that the Company has proper Board-processes and
to an Issue and Share Transfer Agents) Regulations,
compliance-mechanism in place to the extent, in the manner
1993 regarding the Companies Act and dealing
and subject to the reporting made hereinafter.
with client;
I have examined the books, papers, minute books, forms and
returns filed and other records maintained by the Company for (g) The Securities and Exchange Board of India (Delisting
the financial year ended on 31st March, 2016 according to the of Equity Shares) Regulations, 2009 (Not applicable to
provisions of: the Company during the Audit period); and

(i) The Companies Act, 2013 (the Act) and the rules made (h) The Securities and Exchange Board of India (Buyback
thereunder; of Securities) Regulations, 1998 (Not applicable to the
Company during the Audit period).
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the rules made thereunder; I further report that having regard to the compliance system
(iii) The Depositories Act, 1996 and the Regulations and Bye- prevailing in the Company and on examination of the relevant
laws framed thereunder; documents and records in pursuance thereof, the Company
has complied with the following laws applicable specifically to
(iv) Foreign Exchange Management Act, 1999 and the rules
the Company:
and regulations made thereunder to the extent of foreign
direct investment, overseas direct investment and external (a) The Motor Vehicles Act, 1988 and the Rules made
commercial borrowings; thereunder;

Mahindra & Mahindra Limited 37

(b) The Tractor Cess Rules, 1992; I further report that:
(c) The Batteries (Management and Handling) Rules, 2001; (a) The Board of Directors of the Company is duly constituted
with proper balance of Executive Directors, Non-Executive
(d) The Petroleum Act, 1934 and the Rules made thereunder;
Directors and Independent Directors. The changes in the
(e) The Ozone Depleting Substances (Regulation and
composition of the Board of Directors that took place
Control) Rules, 2000 and The Ozone Depleting Substances
during the period under review were carried out in
(Regulation and Control) Amendment Rules, 2001;
compliance with provisions of the Act.
(f) The Plastic Manufacture, Sale and Usage Rules, 1999; (b) Adequate notice is given to all Directors to schedule the
(g) Food Safety and Standards Act, 2006; Board Meetings, agenda and detailed notes on agenda
(h) Insecticide Act, 1968 & Rules made thereunder; were sent at least seven days in advance, and a system
exists for seeking and obtaining further information and
(i) Agricultural Produce (Grading and Marking) Act, 1937;
clarifications on the agenda items before the meeting and
(j) The Seeds Act, 1966; for meaningful participation at the meeting.
(k) The Seeds Control Order, 1983; (c) As per the minutes of the meetings duly recorded and
(l) Mandi taxes of various States; signed by the Chairman, the decisions of the Board were
unanimous and no dissenting views have been recorded.
(m) The Essential Commodities Act, 1955.
I further report that there are adequate systems and
I have also examined compliance with the applicable clauses
processes in the Company commensurate with the size and
of the following:
operations of the Company to monitor and ensure compliance
(i) Secretarial Standards issued by the Institute of Company with applicable laws, rules, regulations and guidelines.
Secretaries of India;
I further report that during the audit period no specific events/
(ii) Listing Agreements entered into by the Company with BSE actions took place having a major bearing on the Company’s
Ltd. and the National Stock Exchange of India Ltd. and affairs in pursuance of the above referred laws, rules,
Securities and Exchange Board of India (Listing Obligations regulations, guidelines, standards etc. referred to above.
and Disclosure Requirements) Regulations, 2015;
During the period under review the Company has complied Sachin Bhagwat
with the provisions of the Act, Rules, Regulations, Guidelines, Place: Pune ACS: 10189
Standards, etc. mentioned above. Date: 12th May, 2016 CP: 6029

38 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

ANNEXURE III
DETAILS OF REMUNERATION
Details pertaining to remuneration as required under section 197(12) read with Rule 5(1) of Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014
The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the Financial Year 2015-16,
ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the Financial Year 2015-16 and the
comparison of remuneration of each Key Managerial Personnel (KMP) against the performance of the Company are as under:
Sr. Name of Director/KMP Designation Remuneration Remuneration % increase in % increase in Ratio of Comparison of the Comparison of the
No. of Director/KMP of Director/ Remuneration Remuneration Remuneration Remuneration of Remuneration of
for the Financial KMP for the in the Financial in the of each Director the KMP against the the KMP against the
Year 2015-16 Financial Year 2015-16 Financial to median performance of the performance of the
(Rs. in crores) Year 2015-16 (Excluding Year 2015-16 remuneration Company (Excluding Company (Including
(Excluding (Rs. in crores) perquisite (Including (Including perquisite value of perquisite value of
perquisite (Including value of ESOPs perquisite perquisite value of ESOPs exercised) ESOPs exercised)
value of ESOPs perquisite exercised) value of ESOPs exercised) of
exercised) value of ESOPs ESOPs employees for the
exercised) exercised) Financial Year

1. Mr. Anand G. Mahindra Chairman & 6.59 6.59 10.20% 10.20% 93.48 Remuneration Remuneration
Managing increased by 10.20% increased by 10.20%
Director whereas profit whereas profit
before tax increased before tax increased
by 1.46% by 1.46%

2. Dr. Pawan Goenka Executive 6.38 11.60 6.69% 11.75% 164.54 Remuneration Remuneration
Director increased by 6.69% increased by 11.75%
& Group whereas profit whereas profit
President before tax increased before tax increased
(Auto and by 1.46% by 1.46%
Farm Sector)

3. Mr. Deepak S. Parekh # Independent 0.37 0.37 10.94% 10.94% 5.18

Director

4. Mr. Nadir B. Godrej # Independent 0.36 0.36 9.76% 9.76% 5.11

Director

5. Mr. M. M. Murugappan # Independent 0.38 0.38 9.97% 9.97% 5.32

Director
6. Mr. Bharat Doshi@ Non-Executive 0.27 1.96 (89.09)% (21.95)% 27.80
Director
7. Mr. R. K. Kulkarni # Independent 0.41* 0.41 16.03% 16.03% 5.87
Director
8. Mr. Anupam Puri # Independent 0.26 0.26 6.12% 6.12% 3.69
Director
9. Mr. S. B. Mainak Nominee 0.22** 0.22 0% 0% 3.12
(Nominee of LIC) Director
10. Dr. Vishakha N. Desai # Independent 0.29 0.29 10.36% 10.36% 4.16
Director
11. Mr. Vikram Singh Mehta # Independent 0.34 0.34 10.93% 10.93% 4.75
Director

12. Mr. V S Parthasarathy Group CFO, 2.94 2.94 16.67% (27.41)% — Remuneration Remuneration
Group CIO increased by 16.67% decreased by 27.41%
& President whereas profit whereas profit
(Group before tax increased before tax increased
Finance and by 1.46% by 1.46%
M&A)

13. Mr. Narayan Shankar Company 1.03 1.03 7.29% (52.53)% — Remuneration Remuneration
Secretary increased by 7.29% decreased by
whereas profit 52.53% whereas
before tax increased profit before tax
by 1.46% increased by 1.46%
#
The remuneration of Independent Directors covers sitting fee and commission.
@ Ceased to be a Director with effect from 7th August, 2015.
* Paid/Payable to Khaitan & Co., in which Mr. R. K. Kulkarni is a Partner.
** Paid/Payable to LIC.

Mahindra & Mahindra Limited 39

I. The ratio of the remuneration of each director to the The Initial Public offer was made by the Company in the
median remuneration of the employees of the company year 1955 and the issue was for 2,16,382 Ordinary Shares
for the Financial Year: of Rs. 10 each, at par. The shares of the Company were
The median remuneration of employees of the Company first listed on the BSE Limited in the year 1956. The closing
during the Financial Year was Rs. 7.05 lakhs and ratio share price of the Company at BSE Limited on 31st March,
of the remuneration of each Director to the median 2016 was Rs. 1,209.65 per equity share of face value of
remuneration of the employees of the Company for the Rs. 5 each indicating a Compounded Annual Growth Rate
Financial Year is provided in the above table. of 14.16%. This is after giving effect to the subdivision of
face value of shares from Rs. 10 to Rs. 5 and benefit on
II. The percentage increase in the median remuneration of account of shares issued by way of Bonus but excluding
employees in the Financial Year: the dividend accrued.
In the Financial Year, there was an increase of 7% in the
VII. Average percentile increase already made in the salaries
median remuneration of employees.
of employees other than the managerial personnel
III. The number of permanent employees on the rolls of in the last Financial Year and its comparison with the
Company: percentile increase in the managerial remuneration
There were 20,122 permanent employees on the rolls of and justification thereof and point out if there are any
the Company as on 31st March, 2016. exceptional circumstances for increase in the managerial
remuneration:
IV. The explanation on the relationship between average Average percentage increase made in the salaries of
increase in remuneration and company performance: employees other than the managerial personnel in the
The average remuneration increased by 8.87% in last Financial Year i.e. 2015-16 was 10.34% whereas the
2015-16 whereas the Profit before Tax increased by 1.46% in increase in the managerial remuneration for the Financial
2015-16. Year 2015-16 was 7.02%.
As per the remuneration policy of your Company, Justification: Increase in remuneration of the Chairman &
employees are compensated broadly in comparison Managing Director and Whole Time Director is decided
with the median of the comparator basket, on the based on the individual performance, inflation, prevailing
basis of performance, potential and criticality for industry trends and benchmarks.
achieving competitive advantage in the business. The The remuneration of Non-Executive Directors consists of
compensation structure has been built by regular annual commission, sitting fees and perquisites, if any. While
benchmarking over the years with relevant players deciding the remuneration, various factors such as
across the industry in which your Company operates in. Director’s participation in Board and Committee Meetings
Salary increases during the year were in line with your during the year, other responsibilities undertaken, such as
Company’s performance as well as per Company’s market Membership or Chairmanship of Committees, etc. were
competitiveness. taken into consideration.
V. Comparison of the remuneration of the Key Managerial VIII. The key parameters for any variable component of
Personnel against the performance of the Company: remuneration availed by the Directors:
The total remuneration of Key Managerial Personnel The key parameters for the variable component of
decreased by 1.86% from Rs. 22.58 crores in 2014-15 to remuneration availed by the Directors are considered by
Rs. 22.16 crores in 2015-16 whereas the Profit before Tax the Board of Directors based on the recommendations
increased by 1.46 % to Rs. 4,229.90 crores in 2015-16 of the Governance, Nomination and Remuneration
(Rs. 4,168.89 crores in 2014-15). Committee as per the Policy for Remuneration of the
VI. Variations in the market capitalisation of the company, Directors, Key Managerial Personnel and other Employees.
price earnings ratio as at the closing date of the current IX. The ratio of the remuneration of the highest paid director
Financial Year and previous Financial Year and percentage to that of the employees who are not directors but receive
increase or decrease in the market quotations of the remuneration in excess of the highest paid director during
shares of the company in comparison to the rate at which the year:
the company came out with the last public offer in case
Not applicable.
of listed companies:
The market capitalisation as on 31st March, 2016 was X. Affirmation that the remuneration is as per the
Rs. 75,195.65 crores (Rs. 73,732.98 crores as on 31st March, remuneration policy of the company:
2015). The price earnings ratio of the Company was It is hereby affirmed that the remuneration paid is as
22.61 as at 31st March, 2016 and was 21.14 as at per the Policy for Remuneration of the Directors, Key
31st March, 2015. Managerial Personnel and other Employees.

40 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

ANNEXURE IV-A
POLICY ON APPOINTMENT OF DIRECTORS AND SENIOR MANAGEMENT AND SUCCESSION PLANNING FOR
ORDERLY SUCCESSION TO THE BOARD AND THE SENIOR MANAGEMENT
DEFINITIONS of the appropriate member. The Board through the
The definitions of some of the key terms used in this Policy are Chairman & Managing Director will interact with the
given below. new member to obtain his/her consent for joining the
Board. Upon receipt of the consent, the new Director
“Board” means Board of Directors of the Company.
will be co-opted by the Board in accordance with the
“Company” means Mahindra & Mahindra Limited. applicable provisions of the Companies Act, 2013 and
“Committee(s)” means Committees of the Board for the time Rules made thereunder.
being in force.
REMOVAL OF DIRECTORS
“Employee” means employee of the Company whether
If a Director is attracted with any disqualification as
employed in India or outside India including employees in the
mentioned in any of the applicable Act, rules and
Senior Management Team of the Company.
regulations thereunder or due to non-adherence to
“HR’’ means the Human Resource Department of the Company. the applicable policies of the company, the GNRC may
“Key Managerial Personnel” (KMP) refers to key managerial recommend to the Board with reasons recorded in writing,
personnel as defined under the Companies Act, 2013 and removal of a Director subject to the compliance of the
includes: applicable statutory provisions.
(i) Managing Director (MD), or Chief Executive Officer (CEO); SENIOR MANAGEMENT PERSONNEL
or Manager; or Whole Time Director (WTD)
The GNRC shall identify persons who are qualified to
(ii) Chief Financial Officer (CFO); and become directors and who may be appointed in senior
(iii) Company Secretary (CS). management team in accordance with the criteria laid
“Governance, Nomination and Remuneration Committee” down above.
(GNRC) means Governance, Nomination and Remuneration Senior Management personnel are appointed or promoted
Committee of Board of Directors of the Company for the time and removed/relieved with the authority of Chairman &
being in force. Managing Director based on the business need and the
“Senior Management” means personnel of the Company who suitability of the candidate. The details of the appointment
are members of its Core Management Team excluding Board of made and the personnel removed one level below the Key
Directors comprising of all members of management one level Managerial Personnel during a quarter shall be presented
below the executive directors including the functional heads. to the Board.

I. APPOINTMENT OF DIRECTORS II. SUCCESSION PLANNING:

• The GNRC reviews and assesses Board composition and Purpose:
recommends the appointment of new Directors. In The Talent Management Policy sets out the approach to the
evaluating the suitability of individual Board member, development and management of talent in the Mahindra
the GNRC shall take into account the following criteria Group to ensure the implementation of the strategic
regarding qualifications, positive attributes and business plans of the Group and the Group Aspiration of
independence of director: being among the Top 50 globally most-admired brands by
1. All Board appointments will be based on 2021.
merit, in the context of the skills, experience, Board:
independence and knowledge, for the Board as
a whole to be effective. The successors for the Independent Directors shall be
identified by the GNRC at least one quarter before
2. Ability of the candidates to devote sufficient time expiry of the scheduled term. In case of separation of
and attention to his professional obligations as Independent Directors due to resignation or otherwise,
Independent Director for informed and balanced successor will be appointed at the earliest but not later
decision making. than the immediate next Board meeting or three months
3. Adherence to the Code of Conduct and highest from the date of such vacancy, whichever is later.
level of Corporate Governance in letter and in The successors for the Executive Director(s) shall
spirit by the Independent Directors. be identified by the GNRC from among the Senior
• Based on recommendation of the GNRC, the Board will Management or through external source as the Board may
evaluate the candidate(s) and decide on the selection deem fit.

Mahindra & Mahindra Limited 41

 The GNRC will accord due consideration for the expertise The Talent Management process is applicable to all
and other criteria required for the successor. employees. Over the years, the Talent Management
The Board may also decide not to fill the vacancy caused framework has become a well-structured and process-
at its discretion. oriented system which is driven by an interactive and
collaborative network of Talent Councils at the Group and
Senior Management Personnel: Sector Levels. These Talent Councils, which consist mainly
A good succession-planning program aims to identify high of Senior business leaders supported by HR, are a mix of
growth individuals, train them and feed the pipelines Sector (Business) and Functional Councils coordinated by
with new talent. It will ensure replacements for key job an Apex Talent Council, headed by the Group Chairman.
incumbents in KMPs and senior management positions in The Apex Council reviews the work done by the Talent
the organization. Councils and facilitates movement of talent across Sectors.
The Sector/Functional Councils meet regularly throughout
Significantly, we have a process of identifying Hi-pots
the year and the Apex Council interacts with each one
and critical positions. Successors are mapped for these
of them separately once a year, and in addition conducts
positions at the following levels:
an integrated meeting where the Chairpersons of all the
1. Emergency successor Councils are present.
2. Ready now The Talent Management process can be represented
3. Ready in 1 to 2 years pictorially as under:
4. Ready in 2 to 5 years
5. Ready in more than 5 years Apex Group Councils

in order to ensure talent readiness as per a laddered

approach.
Employee Personal
Development Plans
Policy Statement Sector Councils Functional Councils
The Talent Management framework of the Mahindra
Group has been created to address three basic issues:

1) Given the strategic business plans, do we have the

Talent Pool List
skills and competencies required to implement them? and Succession
If not, how do we create them – by developing them Plans for Key
internally or through lateral induction from outside? positions
The talent
Talent pipeline is
Development Assessment and
2) For critical positions, what is the succession pipeline? Initiatives Development

3) What are the individual development plans for

individuals both in the succession pipeline as well as The talent pipeline is maintained and developed so as to
others?
ensure that there is a seamless flow of talent. An important
The framework lays down an architecture and processes to
part of this exercise is drawing up and implementing IDAPs
address these questions using the 3E approach:
(Individual Development Action Plans) for every Executive
a) Experience i.e. both long and short-term assignments. concerned using the 3E approach mentioned above.
This has 70% weightage.
For and on behalf of the Board
b) Exposure i.e. coaching and mentoring – 20%
weightage. ANAND G. MAHINDRA
c) Education i.e. learning and development initiatives – Chairman & Managing Director
10% weightage. Mumbai, 30 th May, 2016

42 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

ANNEXURE IV-B
POLICY FOR REMUNERATION OF THE DIRECTORS, KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES

Purpose Mr. V. S. Parthasarathy or Mr. S. Durgashankar or such other

This Policy sets out the approach to Compensation of Directors, person as may be authorised by the Board from time to time.
Key Managerial Personnel and other employees in Mahindra The remuneration shall be consistent with the competitive
and Mahindra Limited. position of the salary for similar positions in the industry and
their Qualifications, Experience, Roles and Responsibilities.
Policy Statement Pursuant to the provisions of section 203 of the Companies
We have a well-defined Compensation policy for Directors, Act, 2013 the Board shall approve the remuneration at the
Key Managerial Personnel and all employees, including the time of their appointment.
Chairman, Presidents and other Members of the Group The remuneration to directors, KMPs and senior management
Executive Board who are employees of the Company. The involves a balance between fixed and incentive pay reflecting
overall compensation philosophy which guides us is that in short and long-term performance objectives appropriate to
order to achieve global leadership and dominance in domestic the working of the company and its goals.
markets, we need to attract and retain high performers by
compensating them at levels that are broadly comparable with Employees
the median of the comparator basket while differentiating We follow a differential approach in choosing the comparator
people on the basis of performance, potential and criticality basket for benchmarking, depending upon the level in the
for achieving competitive advantage in the business. organization:
In order to effectively implement this, we have built our a. For all employees from Operational to Executive Band,
Compensation structure by a regular annual benchmarking over we benchmark with a set of comparators from the same
the years with relevant players across the industry we operate in. industry.
NON-EXECUTIVE INCLUDING INDEPENDENT DIRECTORS: b. For Strategic band and above, we have a position-based
The Governance, Nomination and Remuneration Committee approach and the comparator basket includes benchmarks
(GNRC) shall decide the basis for determining the compensation, from across relevant industries.
both Fixed and variable, to the Non-Executive Directors, We have a CTC (Cost to Company) concept which includes a
including Independent Directors, whether as commission or fixed component (Guaranteed Pay) and a variable component
otherwise. The GNRC shall take into consideration various (Performance pay). The percentage of the variable component
factors such as director’s participation in Board and Committee increases with increasing hierarchy levels, as we believe
meetings during the year, other responsibilities undertaken, employees at higher positions have a far greater impact and
such as membership or Chairmanship of committees, time spent influence on the overall business result. The CTC is reviewed
in carrying out their duties, role and functions as envisaged once every year and the compensation strategy for positioning
in Schedule IV of the Companies Act, 2013 and Clause 49 of of individuals takes into consideration the following elements:
the Listing Agreement with Stock Exchanges and such other • Performance
factors as the GNRC may consider deem fit for determining the
• Potential
compensation. The Board shall determine the compensation to
Non-Executive Directors within the overall limits specified in • Criticality
the Shareholders resolution. • Longevity in grade
Executive Directors: Remuneration for the new employees other than KMPs
The remuneration to Chairman & Managing Director and and Senior Management Personnel will be decided by the
Executive Director(s) shall be recommended by GNRC to the HR, in consultation with the concerned business unit head
Board. The remuneration consists of both fixed compensation at the time of hiring, depending upon the relevant job
and variable compensation and shall be paid as salary, experience, last compensation and the skill-set of the selected
commission, performance bonus, stock options (where candidate.
applicable), perquisites and fringe benefits as approved by the The Company may also grant Stock Options to the Employees
Board and within the overall limits specified in the Shareholders and Directors (other than Independent Directors and Promoter)
resolution. While the fixed compensation is determined at the in accordance with the ESOP Scheme of the Company and subject
time of their appointment, the variable compensation will be to the compliance of the applicable statutes and regulations.
determined annually by the GNRC based on their performance.
For and on behalf of the Board
Key Managerial Personnel (KMPs)
The terms of remuneration of Chief Financial Officer (CFO) ANAND G. MAHINDRA
shall be determined by the Audit Committee from time to time. Chairman & Managing Director
The terms of remuneration of the Company Secretary shall be
finalised/revised either by any Director or Mr. Rajeev Dubey or Mumbai, 30 th May, 2016

Mahindra & Mahindra Limited 43

ANNEXURE V
CORPORATE SOCIAL RESPONSIBILITY

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY The amount equal to 2% of the average net profit for the
(“CSR”) ACTIVITIES FOR THE FINANCIAL YEAR 2015-16 past three Financial Years is Rs. 84.95 crores.

1. A brief outline of the Company’s CSR policy, including Web link to the CSR Policy, including overview of projects
overview of projects or programs proposed to be or programs proposed to be undertaken – http://www.
undertaken and a reference to the web-link to the CSR mahindra.com/resources/investor-reports/FY16/Annual
policy and projects or programs. Reports/Links-AnnualReport.zip
Since its inception your Company has been a socially
2. The Composition of the CSR Committee:
responsible corporate making investments in the
community which go beyond any mandatory legal and Dr. Vishakha N. Desai - Chairperson
statutory requirements. In line with the Core purpose, Mr. Anand G. Mahindra - Member
the CSR vision of your Company is “to focus our efforts Mr. R. K. Kulkarni - Member
within the constituencies of girls, youth and farmers by Dr. Pawan Goenka - Member
innovatively supporting them through programs designed
Mr. Vikram Singh Mehta - Member
in the domains of education, health and environment,
while harnessing the power of technology. By investing 3. Average net profit of the company for last three Financial
our CSR efforts in these critical constituencies who Years: Rs. 4,247.45 crores.
contribute to nation building and the economy, we will
4. Prescribed CSR Expenditure (two per cent. of the amount
enable our stakeholders and communities to RISE.” In
as in item 3 above): Rs. 84.95 crores.
accordance with the Companies Act, 2013, your Company
has committed 2% (Profit before Tax) annually towards 5. Details of CSR spent during the Financial Year:
CSR initiatives. (a) Total amount to be spent for the Financial Year:
During the year, your Company has spent Rs. 85.90 crores Rs. 84.95 crores.
on CSR activities. (b) Amount unspent, if any: NA

(c) Manner in which the amount spent during the Financial Year is detailed below:
Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8

1. NANHI KALI – Provides educational Promoting Others: Across 10 states 5.69 5.69 5.69 Through
support (material & academic) Education including: Maharashtra, implementing agency
to underprivileged girls in India Chhattisgarh, Andhra – K. C. Mahindra
through an after school support Pradesh, Tamil Nadu, Education Trust &
program. In Financial Year 2016, the Delhi, Rajasthan, Naandi Foundation
project supported the education of Karnataka, Haryana,
1,20,466 girls. Of these 14,918 girls Madhya Pradesh and
were supported by your Company, Telangana
while the Mahindra Group as a
whole supported 53,049 girls. The
balance girls are supported by other
corporates and individuals.

44 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8

2. MAHINDRA SCHOLARSHIPS FOR Promoting Others: Pune - 6.19 6.19 6.19 Through implementing
UWC STUDENTS – Scholarships to Education Maharashtra agency – Mahindra
enable deserving students to study United World College
at Mahindra United World College of India
of India.

3. RESEARCH PROJECTS OF THE INDIAN Promoting Others: Mumbai - 2.00 2.00 2.00 Through Implementing
COUNCIL ON GLOBAL RELATIONS – Education Maharashtra agency – Indian
Public policy research and Council on Global
knowledge generation on pressing Relations
national issues.

4. MAHINDRA WORLD SCHOOL Promoting Local: Chennai - Tamil 2.00 2.00 2.00 Through implementing
EDUCATION TRUST – Construction Education Nadu agency – Mahindra
of an additional building to World School
accommodate one more section for Education Trust,
Grade KG-12 which will benefit Chennai
the community.

5. PROMOTION OF EDUCATION Promoting Local: Mumbai, Pune, 1.87 1.87 1.87 Through implementing
– BUILDING A CONDUCIVE Education Igatpuri, Nashik, agency – Science,
LEARNING ENVIRONMENT IN Nagpur - Maharashtra, Technology,
URBAN SLUMS AND RURAL Zaheerabad - Telangana, Engineering and
INDIA BY ENCOURAGING GRADE Chennai - Tamil Nadu, Math Education,
SPECIFIC LEARNING AND CREATING Bengaluru - Karnataka, Children's Movement
‘RESPONSIBLE CITIZENS’ –Providing Rudrapur, Haridwar for Civic Awareness,
for e-learning, infrastructure, books - Uttarakhand, Myrada, Center for
and stationary, uniforms, shoes, Chandigarh, Pithampur - Human Empowerment
promotion of civic education, Madhya Pradesh through Education
development of a RLC Center, road Related Services and
Others: Rajasthan, Uttar
safety awareness rallies, driver ESOPs
Pradesh, Jharkhand
training and installation of road
safety sign boards.
Impact: benefitting 11,25,739
people.

6. MAHINDRA SAARTHI ABHIYAAN – Promoting Local: Mumbai - 1.54 1.54 1.54 Direct Implementation
Scholarship program for Education Maharashtra
truck drivers girl children,
who have scored above average
marks in 10 th grade thereby
encouraging them to take up
higher education.
Impact: Scholarships to 1,300 girls.

Mahindra & Mahindra Limited 45

Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8

7. BAJA – PROJECT BASED LEARNING Promoting Local: Indore - Madhya 1.08 1.08 1.08 Through implementing
OF AUTO ENGINEERING CONCEPTS Education Pradesh agency – Society of
– Undergraduate engineering Automotive Engineers
students are provided with a India
platform in the form of a project
that allows hands on experience
in all aspects of automobile
engineering and interaction with
the corporate world.
Impact: Benefitting 12,500 students.

8. RISE FOR SAFE ROADS – CREATING Promoting Others: Mumbai, Pune - 0.92 0.92 0.92 Through implementing
ZERO FATALITY CORRIDOR Education Maharashtra agency – Save Life
MUMBAI – PUNE EXPRESSWAY Foundation
(MPE) OVER A PERIOD OF 5 YEARS
– First of its kind project creating
a ZERO fatality corridor on the
Mumbai – Pune Expressway
(MPE) in partnership with various
government agencies and training
long haul truck drivers for safe
driving.

Impact: 1,200 drivers trained. MOU

signed with MSRDC.

9. J C MAHINDRA MEMORIAL SCHOOL Promoting Local: Khopoli - 0.66 0.66 0.66 Through implementing
– Supporting a school providing Education Maharashtra agency – J C Mahindra
quality education to the 798 Memorial School
students from low income group
families in Khopoli.

10. ENACTUS – PROMOTION OF Promoting Others: PAN India 0.45 0.45 0.45 Through implementing
SOCIAL ENTREPRENUERSHIP Education agency – Students in
AMONG PROFESSIONAL STUDENTS Free Enterprise
– Through this initiative your
Company was able to reach out
to students and promote social
entrepreneurship resulting in the
building of successful social business
models. Furthermore, the students
were able to interact with business
leaders and develop entrepreneurial
skills.

Impact: Benefitting 1,153 students.

46 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8
11. A WORLD IN MOTION (AWIM) Promoting Local: Jaipur - Rajasthan, 0.45 0.45 0.45 Through implementing
– PROJECT BASED LEARNING OF Education Mumbai, Nashik - agency – Society of
MECHANICAL CONCEPTS – Class Maharashtra, Rudrapur, Automotive Engineers
V students are provided with Haridwar - Uttarakhand, India
a platform that allows hands Chennai - Tamil Nadu,
on experience in all aspects of Chandigarh
mechanical concepts for building
vehicles for road and water.
Impact: Benefitting 54,449 students
and teachers.

12. MUMBAI PUBLIC SCHOOLS – Promoting Others: Mumbai - 0.28 0.28 0.28 Through implementing
PROMOTION OF EDUCATION Education Maharashtra agency – Naandi
– Supporting 28 English medium Foundation
MCGM schools from KG to
7th Grade.
Impact: Benefitting 15,586 students.

13. SEVA MANDIR TRUST – Quality Promoting Others: Districts of 0.27 0.27 0.27 Through implementing
education provided to 825 Education Udaipur and Rajsamand agency – Seva Mandir
underprivileged children in the age in Rajasthan.
group of 6-14 years, through 23
Shiksha Kendras.
14. DONATION TO THE CORPUS OF Promoting Others: Mumbai - 1.62 1.62 1.62 Direct Implementation
THE K C MAHINDRA EDUCATION Education Maharashtra
TRUST – for supporting schools and
providing scholarships.
15. MAHINDRA UNIVERSITY –Providing Promoting Others: Hyderabad - 15.00 15.00 15.00 Through implementing
infrastructural support to Mahindra Education Andhra Pradesh agency – Mahindra
Educational Institutions (MEI) Educational
specifically towards construction of Institutions
a hostel and lab facilities for civil
and mechanical engineering colleges
at Hyderabad.
16. HUNNAR – SKILL DEVELOPMENT Promoting Others: Jhajjar - 4.68 4.68 4.68 Through implementing
FOR YOUTH INCREASING THEIR employment Haryana, Bulandshahr, agency – Lend a Hand
SCOPE FOR EMPLOYABILITY – Skill enhancement Sitapur - Uttar Pradesh, India, Kherwadi Social
training in auto sales and service. vocation skills Ajmer, Bharatpur, Welfare Association,
and livelihood Jaipur - Rajasthan, Thakur Education Trust,
Impact: 26,248 students trained. Mumbai, Pune, Nashik,
enhancement Dr. Amte Foundation,
projects Nagpur - Maharashtra, Centurion University
Coimbatore - Tamil Nadu,
Bhubaneshwar - Orissa,
Betul, Harda - Madhya
Pradesh

Mahindra & Mahindra Limited 47

Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8

17. MAHINDRA PRIDE SCHOOL (MPSs) – Promoting Others: Chandigarh and 2.50 2.50 2.50 Through implementing
A livelihood training school employment Srinagar agency – K. C.
for youth from socially and enhancement Mahindra Education
economically disadvantaged vocation skills Trust and Naandi
backgrounds. In Financial Year 2016, and livelihood Foundation
the Mahindra Group supported enhancement
5 MPSs in Pune, Chennai, Patna, projects
Chandigarh and Srinagar through
which 3,135 students were trained.
From inception till date over
15,000 students have been trained
and 100% have been placed.
Your Company supported the
schools in Srinagar and Chandigarh
which respectively skilled
523 and 602 students in Financial
Year 2016.

18. MAHINDRA NAMASTE / PRIDE Promoting Others: Bengaluru - 1.44 1.44 1.44 Through implementing
SCHOOL SCHOLARSHIP – employment Karnataka agency – Naandi
Scholarships which enable enhancement Foundation
socially and economically vocation skills
disadvantaged youth to and livelihood
undergo livelihood training enhancement
at Mahindra Namaste Private projects
Limited.

19. SWACHH BHARAT SWACHH Promoting Others: Delhi 5.09 5.09 5.09 A) Through
VIDYALAYA PROGRAM – preventive implementing
Local: Mumbai, Pune,
A) Supporting CII, Delhi to healthcare and agency – Mahindra
Igatpuri, Nashik,
construct 8 public toilet blocks in sanitation Nagpur - Maharashtra, Foundation
Delhi as part of the Swachh Bharat Zaheerabad - Telangana, B) Direct
program. Chennai - Tamil Nadu, Implementation
B) Cleanliness Drives, construction Bengaluru - Karnataka,
and maintenance of toilets were Rudrapur, Haridwar
taken up to create ‘open defecation - Uttarakhand,
free areas’. Chandigarh, Lucknow
- Uttar Pradesh, Noida
Impact: 1,170 Toilets were - Delhi, Patna - Bihar,
constructed. 54,213 people Bhubaneshwar - Orissa
benefitted in schools and the
villages.

48 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8

20. MULTI DISCIPLINARY MEDICAL Promoting Local: Mumbai, Pune, 3.26 3.26 3.26 Through implementing
AND HEALTHCARE SERVICES FOR Preventive Igatpuri, Nashik, agency – Sevamob,
DISADVANTAGED SECTIONS OF Healthcare Nagpur - Maharashtra, Life Education and
SOCIETY – The program covers Zaheerabad - Telangana, Developmental
medical camps, mobile dispensaries, Chennai - Tamil Nadu, Support, Cancer
holistic HIV/AIDS programs, health Bengaluru - Karnataka, Patients Aid
and wellness for traffic personnel, Rudrapur, Haridwar Association, Kripa
provision of healthy meals, cancer - Uttarakhand, Foundation, BSA
screening camps, health awareness Chandigarh, Lucknow Training Academy,
camps, ear camps, TB care and - Uttar Pradesh, Noida Nashik Accident
medical check-ups and eye testing - Delhi, Patna - Bihar, Medical Emergency
for truck drivers, driving test Bhubaneshwar - Orissa Foundation, etc.
program, 24 hour ambulance for
road accident victims.

Impact: Benefitting 1,76,721

people.

21. LIFELINE EXPRESS – Hospital on Promoting Others: Bharatpur - 1.36 1.36 1.36 Through implementing
wheels catering to medical needs Preventive Rajasthan and Ghazipur agency – Impact India
of rural people who don’t have Healthcare - Uttar Pradesh Foundation
access to quality medical facilities.
Diagnostic, medical and surgical
treatment for preventive and
curative interventions e.g. cataract,
cleft lip palate & deafness
correction.

Impact: Benefitting 15,642 people

22. HEALTH CARE PROJECTS: Promoting Others: Mumbai - 1.25 1.25 1.25 Through Implementing
A) PALCARE – Supporting the preventive Maharashtra agency – Mahindra
setup of a palliative care program healthcare Foundation in
for people with chronic illnesses partnership with the
such as cancer, Alzheimer’s, kidney Jimmy S Bilimoria
failure, lung conditions Foundation and KARO
and stroke. Trust
B) KARO TRUST – providing
financial and psychological
support to patients suffering from
critical and life threatening
illnesses.

Mahindra & Mahindra Limited 49

Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8
23. DISASTER RELIEF: Promoting Local: Mumbai - 0.94 0.94 0.94 Direct Implementation
A) DAMU NAGAR FIRE TRAGEDY – preventive Maharashtra and – Employee Social
Providing immediate fire emergency healthcare Chennai - Tamil Nadu Options Platform
services including water lines to fire (ESOPs)
brigade. Also included distribution
of drinking water and meals for 3
days along with distribution of basic
household amenities to families
and books and stationary for school
children affected by the fire.
Impact: Benefitting 1,065
households.
B) TAMIL NADU FLOOD RELIEF
– Distribution of food, blankets,
rations and utensils to 7,340 people.
24. JEEVANDAAN – BLOOD DONATION Promoting Local: Mumbai, Pune, 0.61 0.61 0.61 Direct Implementation
INCLUDING LIFE SUPPORT FOR Preventive Igatpuri, Nashik, – Employee Social
THALASSEMIA PATIENT – An Healthcare Nagpur - Maharashtra, Options Platform
ESOPs driven initiative that is Zaheerabad - Telangana, (ESOPs)
held regularly across locations/ Chennai - Tamil Nadu, Through implementing
plants. This includes a robust Bengaluru - Karnataka, agency – Think
Thalassemia Program to provide Rudrapur, Haridwar Foundation
an uninterrupted blood supply for - Uttarakhand,
Thalassemia patients. Chandigarh, Lucknow
Impact: 14,889 units of blood - Uttar Pradesh, Noida
collected. - Delhi, Patna - Bihar,
Bhubaneshwar - Orissa

25. NAVDRUSHTI – EYE CARE AND Promoting Local: Zaheerabad 0.55 0.55 0.55 Through implementing
VISION CORRECTIONS – Awareness Preventive - Telangana, Jaipur agency – Vision
drives, eye testing, distribution of Healthcare - Rajasthan, Haridwar - Spring, Ganga Mata
spectacles and cataract surgeries for Uttarakhand, Mumbai, Eye Hospital, Netra
the deprived sections of society. Jyoti Foundation and
Nashik, Sangli -
Tulsi Eye Hospital,
Maharashtra, Pithampur
Impact: Benefitting 21,530 people. Swajan Social
- Madhya Pradesh
Development and
Health Education

26. HEALTHCARE FOR THE DIFFERENTLY Promoting Local: Bengaluru - 0.26 0.26 0.26 Through implementing
ABLED – Providing mobility aids, Preventive Karnataka, Mumbai, agency – The
nutritional support, conducting Healthcare Pune - Maharashtra, Association of People
health camps and supporting Haridwar - Uttarakhand, with Disabilities,
livelihood development of persons Ganga Mata Eye
Lucknow - Uttar Pradesh
Hospital and Comfort
with disability.
Dental Clinic, Spastics
Impact: Benefitting 490 people. Center (Ashayen) and
Suhrud Mandal

50 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8

27. PROJECT HARIYALI: Ensuring Others: Araku - Andhra 4.47 4.47 4.47 Through implementing
A) ARAKU PROJECT: Tree Environmental Pradesh agency – Naandi
plantation to increase green Sustainability Foundation, Employee
Local: Mumbai, Pune,
cover and improve livelihood of Social Options
Igatpuri, Nashik,
farmers. In Financial Year 2016, Platform (ESOPs),
Nagpur - Maharashtra,
the project planted 1.23 million Nashik Muncipal
Zaheerabad - Telangana,
trees in totality. This CSR grant Corporation
Chennai - Tamil Nadu,
enabled the planting of
Bengaluru - Karnataka,
8,50,000 trees in the tribal Araku
Rudrapur, Haridwar -
valley belt.
Uttarakhand,
B) INCREASING GREEN COVER & Chandigarh
MAINTENANCE OF GREEN ZONES –
2,03,674 Trees Planted.

28. EHS+ – Your Company partnered Ensuring Others: Pune - 1.63 1.63 1.63 Through implementing
with OSC to establish a EHS+ Environmental Maharashtra agency – OSC
center for training small and Sustainability
medium enterprises in the
industrial sector, with an aim
of promoting environmental
sustainability.

29. MPOWERED – RURAL Ensuring Others: Belwa, Basahi 0.67 0.67 0.67 Direct Implementation
ELECTRIFICATION THROUGH Environmental - Uttar Pradesh, Pune -
SOLAR POWER – Remote villages Sustainability Maharashtra
of Belwa and Basahi have been
electrified with home lighting and
e-hubs for livelihood generation
avenues.

Impact: Benefitting 66 households

and 330 people.

30. JALDOOT – PROVIDING SAFE Providing Local: Mokhada, Palghar 1.55 1.55 1.55 Through implementing
DRINKING WATER TO SCHOOLS Safe Drinking - Maharashtra, Rudrapur agency – Vasai Janhit
AND VILLAGES WHERE WATER IS Water - Uttarakhand, Jaipur and Suryodaya
SCARCE AND CONTAMINATED – - Rajasthan, Bengaluru - Foundation, Swajan
Construction of water tank, Karnataka Social Development
bore wells, provision of hand and Health Education
pumps, installation of Samiti and ESOPs
RO plants and provision of
water coolers.

Impact: Benefitting 11,061 people.

Mahindra & Mahindra Limited 51

Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8
31. KRISHI MITR – RURAL Rural Others: Mankepada, 5.47 5.47 5.47 Through implementing
DEVELOPMENT AIMED AT Development Raigad - Maharashtra, agency – Swades
IMPROVING INCOME GENERATION Sagar, Tikamgarh - Foundation, BAIF
FOR FARMING COMMUNITIES – Madhya Pradesh, Ajmer, Development Research
The program includes soil testing, Alwar - Rajasthan Foundation, Srijan,
advisory services, drip irrigation, Rajasthan Rural
community farming, seed culture Institute, Karm
farming, agri extension services, Foundation, Lok
infrastructure development Nayak Jay Prakash
and capacity building resulting Narayan Leprosy
in improvement in agricultural Eradication Trust,
productivity. Sadguru Foundation,
Impact: Benefitting 49,635 farmers. Dr. Panjabrao
Deshmukh Krishi
Vidyapeeth
32. INTEGRATED WATERSHED Rural Others: Bhopal, Damoh & 2.87 2.87 2.87 Direct Implementation
MANAGEMENT PROGRAM (IWMP) Development Hata - Madhya Pradesh – M&M IWMP Team
– PPP with Government of Madhya
Pradesh for watershed development
at Damoh and Bhopal increasing
the ground water table by 30%,
resulting in increased agricultural
productivity and improved living
standards.

Impact: 1,812 and 112 million litres

of incremental rain water harvesting
capacity at Damoh and Bhopal
respectively covering 83 villages and
12,900 households.
33. SHIV JAL KRANTI – WATER Rural Others: Aurangabad - 1.50 1.50 1.50 Through implementing
MANAGEMENT IN DROUGHT AREAS Development Maharashtra agency – Dilasa
OF AURANGABAD, MARATHWADA Foundation
REGION – Building new water
storage structures and repairing of
old structures leading to increased
water availability during the dry
season.

Impact: 56 structures were repaired

or built in 34 villages, benefiting
38,357 people.
34. SEED THE RISE – Raising awareness Rural Others: Vidarbha, Raigad 1.05 1.05 1.05 Through implementing
and funds to support poor and Development - Maharashtra agency – Naandi
marginalised farmers in drought hit Foundation, K.C.
regions of the country. Mahindra Education
Trust, Digital Green,
Swades Foundation

52 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8
35. WARDHA FARMER FAMILY PROJECT Rural Others - Vidarbha - 1.00 1.00 1.00 Through implementing
(WFFP) – Enriching farmers lives Development Maharashtra agency – Naandi
through various Agri productivity Foundation
initiatives.
Impact: Benefitting 305 farmers.
36. MRV BIO GAS PLANT – Production Rural Local: Chennai - Tamil 0.90 0.90 0.90 Through implementing
of Bio Gas/fertilizer for the local Development Nadu agency – Naandi
community. Foundation
A tripartite agreement with Naandi
Foundation and Mahindra World
City Developers Limited was signed
to set up a bio gas plant which will
convert food and other waste into
energy which will be used in the
local community.
Impact: Testing lab has been set up
and trials are on and 300 people
have been benefitted this year.
37. WATER MANAGEMENT – RURAL Rural Others: Igatpuri - 0.38 0.38 0.38 Direct Implementation
DEVELOPMENT PROJECTS Development Maharashtra, Zaheerabad
STRENGTHENING WATER - Telangana
RESOURCES
Fortification of check dams and
water structures increasing water
availability for irrigation for the
local farming community and
desilting of water structures
creating greater catchment area
during monsoon.
Impact: Benefitting 50,328 people.
38. SPORTS SCHOLARSHIP – Promotion Promotion of Local: Nashik - 0.25 0.25 0.25 Direct Implementation
of sports through coaching and Rural Sports Maharashtra, Jaipur -
provision of sports kits for tribal Rajasthan
youth.
Impact: 2,000 sportsmen/women
received scholarships and 50
received kits.
39. ADHATA TRUST – Providing medical Promoting Others: Mumbai - 0.70 0.70 0.70 Through implementing
assistance, social support and the setting Maharashtra agency – ADHATA
recreational activities for senior up of old age Trust
citizens through six community homes, day
centres. care centers
and such
facilities for
senior citizens

Mahindra & Mahindra Limited 53

 Sr. CSR Project or activity identified Sector in Projects or programs Amount Amount spent Cumulative Amount spent:
No. which the 1) Local areas or Outlay on the project Expenditure directly or through
project is other 2) Specify the (Budget) or programs upto the implementing
covered state and district where Project or 1) Direct reporting agency
(As in projects or programs program expenditure period
Schedule VII) was undertaken wise on projects or (In Rs.
(In Rs. programs crores)
crores) 2) Overheads
(In Rs. crores)
1 2 3 4 5 6 7 8
40. JANANI UTHAN – SKILL Promoting Local: Rudrapur - 0.25 0.25 0.25 Through implementing
DEVELOPMENT FOR WOMEN – Gender Uttarakhand, Jaipur - agency – Society to
Setting up of Mahila Silai Centers Equality, Rajasthan Create Awareness
and computer education for women Empowering towards Life and
to increase income generating Women Environment, Swajan
activities for women. Social Development
Impact: Benefitting 2,800 women. and Health Education

41. INFRASTRUCTURE SUPPORT DURING Protection of Local: Nashik - 0.12 0.12 0.12 Direct Implementation
THE KUMBH MELA – Providing Culture Maharashtra – Employee Social
infrastructure support for pilgrims, Options Platform
safety gear for police personnel. (ESOPs)
Impact: Benefitting 50,000 people.
42. SUPPORTING THE SOCIALLY AND Measures Local: Noida - Delhi, 0.06 0.06 0.06 Through implementing
ECONOMICALLY BACKWARD – to reduce Bhubaneshwar - Orissa, agency – National
Supporting orphans, elders and inequalities Mumbai - Maharashtra, Centre for Promotion
low income groups through various faced by Haridwar - Uttarakhand, of Employment
initiatives throughout the year. Socially and Chandigarh, Pithampur - for Disabled
Economically Madhya Pradesh, Jaipur People, Adhata
Impact: Benefitting 12,773 people.
backward - Rajasthan Trust, Ramakrishna
groups Sevasrama and
Employee Social
Options Platform
(ESOPs)
43. OTHER PROJECTS – Supported Promoting Others: Mumbai - 0.14 1.09 1.09 Through implementing
deserving projects of reputed NGOs Education/ Maharashtra agency - NAGAR,
in the areas of education, health, Promoting Ammada Trust,
environment and flood relief. preventive St Jude's, Yuvak
health care Biradari, World Vision,
and sanitation Mahindra Foundation
GRAND TOTAL 84.95 85.90 85.90

6. In case the company has failed to spend the two per cent, of the average net profit of the last three Financial Years or any part
thereof, the company shall provide the reasons for not spending the amount in its Board Report – Not applicable, since the
Company believes that the above projects and activities fall within the purview of Schedule VII of the Companies Act, 2013.

7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with
CSR objectives and Policy of the Company:

The implementation and monitoring of CSR Policy is in compliance with CSR objectives and Policy of the Company.

ANAND G. MAHINDRA DR. VISHAKHA N. DESAI

Chairman & Managing Director Chairperson - CSR Committee

Mumbai, 30 th May, 2016

54 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

ANNEXURE VI
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

SECTION 134(3)(m) OF THE COMPANIES ACT, 2013 READ WITH – Installation of temperature controller on air
RULE 8(3) OF THE COMPANIES (ACCOUNTS) RULES, 2014 IS conditioners.
FORMING PART OF THE BOARD´S REPORT FOR THE FINANCIAL – Use of energy efficient dry type cast resin
YEAR 2015-16 transformer.
– Installation of energy efficient pumps.
(A) Conservation of Energy
– Installation of timers for shop air ventilators.
Your Company has considered Sustainability as one of
the strategic priorities and energy conservation is one – Installation of energy efficient air compressor.
of the strong pillars for preserving natural resources and – Replacement of welding transformers with
improving bottom line. Your Company is continuously inverter based welding machines.
striving towards improving the energy performance in – Replacement of conventional motors with energy
all areas. Your Company has always considered energy efficient motors.
and natural resource conservation as a focus area and
– Installation of natural cooling towers.
has been consciously making efforts towards improving
the energy performance year on year. Energy policy is – Optimisation of CED Bath temp in paint shops.
formulated and deployed across all the locations for Your Company believes in employee involvement for
Sustainable Development. Energy Management process delivering better results. Towards this goal, your Company
has been established and awareness campaigns have been has taken multiple initiatives. Select few are listed below:
conducted. • Energy Policy formulated and displayed across all
Your Company ensures strict compliance with all the locations.
statutory requirements and has taken several sustainable • National Energy Conservation Week celebration at all
steps voluntarily to contribute towards better environment. Plants.
Few steps are listed below: • Energy Conservation Oath taken by all employees at
• Reduction in specific carbon footprint. all locations.
• Conservation of natural resources like electricity, oil • Online Energy Quiz competition involving all
and fuel. employees.
• Use of renewable energy in Manufacturing. • Residential Electricity Bill Saving Competition for
employees.
• Use of natural lighting and natural ventilation.
• Energy Conclave organised for Officers.
• Encouraging green building initiatives.
• Green initiatives display and walks at Plants.
• Rain water harvesting, recycling and water
conservation. • E-mailers, Wall papers, Posters and Slogans for
awareness on Energy Conservation.
• Reduce, reuse, recycle of waste and eco-friendly waste
disposal. • Suggestion competition for employees on Energy
efficiency.
(i) The steps taken/impact on conservation of energy: • Spreading the importance of Energy Conservation in
– Waste heat recovery from CED ovens in paint nearby schools and colleges.
shops.
(ii) The steps taken by the Company for utilising Alternate
– Installation of hybrid heat pump in paint shops.
Sources of Energy:
– Variable Frequency Drive for cooling tower fan
– Use of solar power through open access and
and other applications.
captive generation as well as procurement of
– Replacement of conventional lighting with LED Renewable energy certificates comprises total @
lighting. 5% of the total power requirement.
– Magnetic induction efficient lighting. – Above renewable power initiative will mitigate
– Energy efficient air-conditioning systems. 13,400 Tons of CO2.

Mahindra & Mahindra Limited 55

 (iii) The capital investment on energy conservation
Investment in R&D and Product Development
equipments: as a % to Revenue
5.00% 4.70
Your Company has focused on investing in modern 4.10
3.80
technology for improving the specific energy 4.00%
3.00 2.90 3.10
consumption. For the year under review capital 3.00% 2.40
2.60 2.70

investment on energy conservation equipment is 2.00%

Rs. 4.2 crores. This investment is broadly done in
1.00%
the areas of heat recovery, LED / magnetic induction
lighting, hybrid heat pump and many more energy 0.00%
F08 F09 F10 F11 F12 F13 F14 F15 F16
conservation initiatives.

Beyond the above, your Company has invested a total For the year under review, your Company bagged
of Rs. 35.52 crores towards harnessing energy from three prestigious National IP Awards on World
renewable energy sources. Intellectual Property Day under the categories of
‘Best Commercialisation of Patents’, ‘WIPO (World
– Investment of Rs. 7.98 crores on a total of 1 MW Intellectual Property Organization) Users Trophy’ and
Solar plants (4 locations). ‘Top organization for Trademarks’.
– Investment of Rs. 27.54 crores on 4.2 MW Wind These awards were conferred by the DIPP –
power. Department of Industrial Policy & Promotion, Ministry
of Commerce & Industry, Government of India.
(B) Technology Absorption
(ii) The benefits derived like product improvement,
(i) The efforts made towards technology absorption:
cost reduction, product development or import
Your Company is committed towards technology substitution:
driven innovation and lays strong emphasis on
inculcating an innovation driven culture within the • Launch of 14 automotive products across industry
organisation. segments. These include six new platforms, five
product refreshes and three variants.
During the year under review, your Company
continued to work on technology upgradation • All new Gasoline engine mFalcon, launched on
and capability development in the critical areas of the KUV100.
Powertrain, Gasoline engines, Emission, Safety, Weight
• Launch of multimode technology on Blazo series
reduction, Alternate fuels, Automotive electronics
of trucks. This technology provides improved fuel
and Connected car. Specifically on the tractor front,
efficiency and optimized drivability based on
efforts are being put to develop electronic systems
load, road and speed.
and features to provide enhanced productivity and
comfort to the farmers. These technology focus areas • Launch of an all new tractor platform
are important to be competitive in the market today YUVO (April 2016), with many industry first
and in the times to come. features.
Your Company has made sustained investment in • Electronic systems on tractors which deliver
developing technology and acquiring patents. Over productivity and driving comfort to farmers.
the years, your Company has strengthened its IPR
portfolio and in Financial Year 2016, your Company • Use of new materials with a focus on light
filed a total of 173 patents. weighting.

The graph below shows the investment in R&D • Development of production ready technologies
and product development as a percentage of in the field of advanced electronics and
revenue for the Financial Year 2007-08 to Financial connectivity, alternate fuels, light weighting and
Year 2015-16: high performance lubricants.

56 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

(iii) In case of imported technology (imported during the last three years reckoned from the beginning of the
financial year):

Sr. Technology Imported Year of Status

No. Import

1 CNG Injection Technology 2013 Technology Absorbed

2 Hydrogen Fuel Technology 2013 Technology Absorbed

3 Dual Clutch Transmission Technology 2013 Technology Absorbed

4 Advanced Engine Exhaust After Treatment Technology 2013 In the process of Absorption

5 Vehicle Comfort & Handling Technology 2013 Technology Absorbed

6 Aero aqoustics development 2014 Technology Absorbed

7 Electrical and electronics architecture validation technology 2014 In the process of Absorption

8 Electrical and electronic technologies for infotainment validation 2014 Technology Absorbed

9 New 6 Speed Transmission technology 2014 In the process of Absorption

10 New Gasoline Engine Technology 2015 Technology Absorbed

11 ICV Transmission Technology 2015 In the process of Absorption

12 New Diesel Engine development 2015 Technology Absorbed

13 Design of automotive Interiors 2016 Technology Absorbed

14 Interior & Exterior Technology for BIW 2016 In the process of Absorption

15 Automated Manual Transmission Design & Development 2016 Technology Absorbed

16 BSR (Buzz, Squeak and Rattle) Development for Vehicles 2016 Technology Absorbed

17 Body Design For Crash & Safety Compliance 2016 Technology Absorbed

All imported technologies ‘In the process of Absorption’ would be absorbed as per the respective Technology Absorption
Schedule.

(iv) The expenditure incurred on Research and Development:

The Company spent Rs. 1,885.89 crores (including Rs. 1,086.68 crores on Capital Expenditure) for Research & Development
work during the year, which was approximately 4.24% of the total turnover.

(C) Foreign Exchange Earnings and Outgo

The information on foreign exchange earned in terms of actual inflows during the year and the foreign exchange outgo during
the year in terms of actual outflows is furnished in the Notes to Accounts.

For and on behalf of the Board

ANAND G. MAHINDRA
Mumbai, 30 May, 2016
th
Chairman & Managing Director

Mahindra & Mahindra Limited 57

ANNEXURE VII

EXTRACT OF ANNUAL RETURN

FORM NO. MGT-9

As on the financial year ended on 31.03.2016

Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management & Administration) Rules, 2014

I. REGISTRATION & OTHER DETAILS:

1. CIN L65990MH1945PLC004558

2. Registration Date 02-10-1945

3. Name of the Company Mahindra & Mahindra Limited

4. Category/Sub-category of the Company Public Company-Limited by shares / Non-Government Company

5. Address of the Registered office & contact details Mahindra & Mahindra Limited
Gateway Building, Apollo Bunder,
Mumbai-400001, Maharashtra
Tel: +91-22-22895500 • Fax: +91-22-22875485

6. Whether listed company Yes

7. Name, Address & contact details of the Registrar Karvy Computershare Private Limited
and Transfer Agent, if any. Karvy Selenium Tower B, Plot No. 31-32, Gachibowli,
Financial District, Nanakramguda, Hyderabad,
Telangana – 500 032, India
Telephone number: +91 40 6716 2222
Fax number: +91 40 2342 0814
Investor Service Toll Free No.: 1-800-3454-001
E-mail: einward.ris@ karvy.com
Website: www.karvycomputershare.com
(with effect from 13th June, 2016)

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

All the business activities contributing 10% or more of the total turnover of the Company:

S. No. Name and Description of main Products / Services NIC Code of the Product/ % to total turnover of
Service the Company

1. Manufacture of Passenger Cars 29101 39.60

2. Manufacture of Commercial vehicles such as vans, lorries, 29102 25.47

over the road tractors for semi-trailers, etc

3. Manufacture of tractors used in agriculture and forestry 28211 23.81

TOTAL 88.88

58 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sr. Name of the Company Address of the Company CIN/GLN Holding / % Holdingβ Applicable
No. Subsidiary / Section
Associate
1 Mahindra Engineering and Gateway Building, Apollo Bunder, U74999MH1954PLC019908 Subsidiary 100.00% 2(87)(ii)
Chemical Products Limited Mumbai 400 001

2 # Retail Initiative Holdings Limited Mahindra Towers, P. K. Kurne U67110MH2008PLC188837 Subsidiary 100.00% 2(87)(ii)
Chowk, Worli, Mumbai-400018
3 ## Mahindra Retail Private Limited Mahindra Towers, P. K. Kurne U52190MH2007PTC173762 Subsidiary 98.96% 2(87)(ii)
Chowk, Worli, Mumbai-400018
4 ### Mahindra Internet Commerce Mahindra Towers, P. K. Kurne U52399MH2008PTC187927 Subsidiary 100.00% 2(87)(ii)
Private Limited Chowk, Worli, Mumbai-400018
5 Mahindra Overseas Investment IFS Court Twenty Eight, Cybercity Foreign Company Subsidiary 100.00% 2(87)(ii)
Company (Mauritius) Limited Ebene- Mauritius
6 • Mahindra Emirates Vehicle P.O. Box No. 39893, Al Jazeera, Foreign Company Subsidiary 51.00% 2(87)(ii)
Armouring FZ-LLC Al Hamra. (Free Zone), RAKIA
Industrial park, WFZ-08, Ras Al
Khaimah, United Arab Emirates
7 • Mahindra Graphic Research Design Via del Babuino 51 – 00187 Foreign Company Subsidiary 100.00% 2(87)(ii)
Srl ROMA - ITALY
8 • Mahindra International UK Ltd. 125, Wood Street, London, EC2V Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 13.10.2015) 7AW
9 • Mahindra Europe S.r.l. Mahindra Europe Srl Via Foreign Company Subsidiary 100.00% 2(87)(ii)
Cancelliera, 35 – Ariccia –
Roma 00072, Italy
10 • Mahindra-BT Investment Company IFS Court, Bank Street, Twenty Foreign Company Subsidiary 57.00% 2(87)(ii)
(Mauritius) Limited Eight, Cybercity, Ebene 72201,
Mauritius
11 • Mahindra Racing UK Limited Abacus House, 33, Gutter Lane, Foreign Company Subsidiary 100.00% 2(87)(ii)
London-EC2V8AR.
12 • Mahindra Yueda (Yancheng) 9, Nenjiang Road, Yancheng Foreign Company Subsidiary 51.00% 2(87)(ii)
Tractor Company Limited Economic Development Zone,
Jiangsu Province, China.
13 • Mahindra Racing S.P.A. (Formerly Via dellaMercede, 11 00187 Roma Foreign Company Subsidiary 100.00% 2(87)(ii)
known as Mahindra Racing s.r.l.)
(Name changed w.e.f. 12.01.2016)
14 • Mahindra Tractor Assembly Inc. Corporation Service Company, Foreign Company Subsidiary 100.00% 2(87)(ii)
2711 Centreville Road, Suite
400, Wilmington, County of
Newcastle, Delaware 19808.
15 Mahindra Vehicle Manufacturers Mahindra Towers, P. K. Kurne U34100MH2007PLC171151 Subsidiary 100.00% 2(87)(ii)
Limited Chowk, Worli, Mumbai-400018
16 Ω Mahindra Reva Electric Vehicles #122E, Bommasandra Industrial U34101KA1996PLC020195 Subsidiary 93.70% 2(87)(ii)
Limited (Formerly known as Area, Bangalore 560099
Mahindra Reva Electric Vehicles
Private Limited)
17 Ω Mahindra Heavy Engines Limited Mahindra Towers, P. K. Kurne U35914MH2007PLC169753 Subsidiary 100.00% 2(87)(ii)
(formerly known as Mahindra Chowk, Worli, Mumbai-400018
Heavy Engines Private Limited)
18 Ω Mahindra Two Wheelers Limited Mahindra Towers, P. K. Kurne U35911MH2008PLC185462 Subsidiary 91.26% 2(87)(ii)
Chowk, Worli, Mumbai-400018
19 ΩΩ Mahindra Two Wheelers Europe 16, Avenue Pasteur, L-2310 Foreign Company Subsidiary 100.00% 2(87)(ii)
Holdings S.a.r.l. Luxembourg, Grand Duchy of
Luxembourg
20 ΩΩΩ Peugeot Motocycles S.A.S. Rue Du 17 Novembre F25350, Foreign Company Subsidiary 51.00% 2(87)(ii)
Mandeure, France

Mahindra & Mahindra Limited 59

 Sr. Name of the Company Address of the Company CIN/GLN Holding / % Holdingβ Applicable
No. Subsidiary / Section
Associate
21 ! Peugeot Motocycles Italia S.P.A 199 via Gallarate, 20154 Milano, Foreign Company Subsidiary 100.00% 2(87)(ii)
Italia
22 ! Peugeot Motocycles Deutschland Kurhessen Strasse, 13. 64536, Foreign Company Subsidiary 100.00% 2(87)(ii)
GmbH Morfelden-Walldorf Deutschland
23 Ω Mahindra Intertrade Limited Mahindra Towers, P. K. Kurne U51900MH1978PLC020222 Subsidiary 100.00% 2(87)(ii)
Chowk, Worli, Mumbai-400018
24 £ Mahindra Auto Steel Private Mahindra Towers, P. K. Kurne U27100MH2013PTC250979 Subsidiary 51.00% 2(87)(ii)
Limited Chowk, Worli, Mumbai-400018
25 £ Mahindra Electrical Steel Private Mahindra Towers, P. K. Kurne U27100MH2009PTC193205 Subsidiary 100.00% 2(87)(ii)
Limited Chowk, Worli, Mumbai-400018
26 £ Mahindra Steel Service Centre Mahindra Towers, P. K. Kurne U27100MH1993PLC070416 Subsidiary 61.00% 2(87)(ii)
Limited Chowk, Worli, Mumbai-400018
27 £ Mahindra MiddleEast Electrical Sharjah Airport International Free Foreign Company Subsidiary 90.00% 2(87)(ii)
Steel Service Centre (FZC) Zone, P3 11/12 Post Box: 8114,
Sharjah UAE.
28 Mahindra First Choice Wheels Gateway Building, Apollo Bunder, U64200MH1994PLC083996 Subsidiary 43.70% 2(87)(i)
Limited Mumbai 400001
29 Mahindra USA, Inc. 9020 Jackrabbit Road, Suite 600, Foreign Company Subsidiary 100.00% 2(87)(ii)
Houston, Texas-77095, USA.
30 σ Mahindra North American 1055 West Square Lake Road, Foreign Company Subsidiary 100.00% 2(87)(ii)
Technical Center, Inc Troy, MI, 48098
31 Mahindra Gujarat Tractor Limited Vishwamitri, near Railway Over U34100GJ1978PLC003127 Subsidiary 60.00% 2(87)(ii)
bridge, Vadodara 390 011
32 Mahindra Agri Solutions Limited Mahindra Towers, P. K. Kurne U01400MH2000PLC125781 Subsidiary 100.00% 2(87)(ii)
(Formerly known as Mahindra Chowk, Worli, Mumbai-400018
Shubhlabh Services Limited)
33 ≡ Mahindra UNIVEG Private Limited Mahindra Towers, P. K. Kurne U01403MH2014PTC255946 Subsidiary 60.00% 2(87)(ii)
Chowk, Worli, Mumbai-400018
34 Mahindra Consulting Engineers Gateway Building, Apollo Bunder, U74210MH1993PLC074723 Subsidiary 59.01% 2(87)(ii)
Limited Mumbai-400001
35 ~ Mahindra Namaste Limited Mahindra Towers, P. K. Kurne U80302MH2010PTC198303 Subsidiary 100.00% 2(87)(ii)
(Formerly known as Mahindra Chowk, Worli, Mumbai-400018
Namaste Private Limited)
36 Mahindra Holdings Limited Mahindra Towers, P. K. Kurne U65993MH2007PLC175649 Subsidiary 100.00% 2(87)(ii)
Chowk, Worli, Mumbai-400018
37 Ø Auto Digitech Private Limited Mahindra Towers, P. K. Kurne U29253MH2009PTC196365 Subsidiary 100.00% 2(87)(ii)
(Formerly known as Mahindra Chowk, Worli, Mumbai-400018
Punjab Tractors Private Limited)
38 Ø Mahindra Telecommunications Gateway Building, Apollo Bunder, U63040MH1993PTC070642 Subsidiary 100.00% 2(87)(ii)
Investment Private Limited Mumbai-400001
39 Ø Mahindra Integrated Business Mahindra Towers, P. K. Kurne U74999MH2011PTC212468 Subsidiary 100.00% 2(87)(ii)
Solutions Private Limited Chowk, Worli, Mumbai-400018
40 Ø Gateway Housing Company Limited Gateway Building, Apollo Bunder, U60231MH1996PLC100436 Subsidiary 100.00% 2(87)(ii)
(w.e.f. 10.03.2016) Mumbai, MH 400001
41 Ø Mahindra Susten Private Limited Mahindra Towers, P. K. Kurne U74990MH2010PTC207854 Subsidiary 100.00% 2(87)(ii)
Chowk, Worli, Mumbai-400018
42 ØØ Mahindra Renewables Private Mahindra Towers, P. K. Kurne U40300MH2010PTC205946 Subsidiary 100.00% 2(87)(ii)
Limited (Formerly known as Chowk, Worli, Mumbai-400018
Mahindra Offgrid Services Private
Limited)
43  MachinePulse Tech Private Limited Mahindra Towers, Pandurang U72300MH2016PTC271679 Subsidiary 100.00% 2(87)(ii)
(w.e.f. 05.01.2016) Budhkar Marg, nr. Doordarshan
kendra, Worli, Mumbai,
Maharashtra

60 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Sr. Name of the Company Address of the Company CIN/GLN Holding / % Holdingβ Applicable
No. Subsidiary / Section
Associate
44  Cleansolar Renewable Energy Mahindra Towers, P. K. Kurne U40108MH2013PTC250684 Subsidiary 100.00% 2(87)(ii)
Private Limited Chowk, Worli, Mumbai-400018
45  Brightsolar Renewable Energy Mahindra Towers, P. K. Kurne U40108MH2013PTC250683 Subsidiary 51.00% 2(87)(ii)
Private Limited Chowk, Worli, Mumbai-400018
46  Divine Solren Private Limited (w.e.f. Mahindra towers, Dr. G.M U74120MH2015PTC264259 Subsidiary 100.00% 2(87)(ii)
08.05.2015) Bhosale Marg, P. K. kurne Chowk,
Worli, Mumbai, Maharashtra
47  Neo Solren Private Limited (w.e.f. Mahindra towers, Pandurang U74999MH2015PTC266154 Subsidiary 100.00% 2(87)(ii)
01.07.2015) Budhkar Marg, nr. Doordarshan
kendra, Worli, Mumbai,
Maharashtra
48  Marvel Solren Private Limited Mahindra towers, Pandurang U74120MH2015PTC269074 Subsidiary 100.00% 2(87)(ii)
(w.e.f. 10.10.2015) Budhkar Marg, nr. Doordarshan
kendra, Worli, Mumbai,
Maharashtra
49  Astra Solren Private Limited (w.e.f. Mahindra towers, Pandurang U74120MH2015PTC269256 Subsidiary 100.00% 2(87)(ii)
14.10.2015) Budhkar Marg, nr. Doordarshan
kendra, Worli, Mumbai,
Maharashtra
50 Mahindra Holidays & Resorts India No. 17 / 18, 2nd floor, L55101TN1996PLC036595 Subsidiary 75.00% 2(87)(ii)
Limited Mahindra Towers, Pattulos Road,
Chennai-600002.
51 @ Mahindra Hotels and Residences No. 17 & 18, 2nd floor, U55101TN2007PLC063285 Subsidiary 100.00% 2(87)(ii)
India Limited Mahindra Towers, Pattulos Road,
Chennai-600002.
52 @ Gables Promoters Private Limited No - 504, Block A, 5th Floor, U45209CH2012PTC033473 Subsidiary 100.00% 2(87)(ii)
ELANTE Office Suites, Plot No-178-
178/A, Industrial Area, Phase 1,
Chandigarh-160001
53 @ MH Boutique Hospitality Limited No. 33/118-119 Wall Street Tower Foreign Company Subsidiary 49.00% 2(87)(i)
Building, 23 rd Floor Surawongse
Road, Suriyawongse sub-district,
Bangrak District, Bangkok,
Thailand
54 $ Infinity Hospitality Group Company No. 20 Soi Sukhumvit 7 Foreign Company Subsidiary 100.00% 2(87)(ii)
Limited (Lerdsin 2), Sukhumvit Road,
Khwaeng Khlongtoey Nua,
Khet Wattana Bangkok.
55 @ Heritage Bird (M) Sdn Bhd 802, 8 th Floor, Block C, Kelana Foreign Company Subsidiary 100.00% 2(87)(ii)
Square, 17, Jalan SS7/26, 47301
Petaling Jaya, Selangor. Malaysia
56 @ MHR Holdings (Mauritius) Limited IFS Court, Twenty Eight Cyber Foreign Company Subsidiary 100.00% 2(87)(ii)
City, Ebene, Mauritius
57 @@ Covington S.a.r.l. 16, Avenue Pasteur, L-2310 Foreign Company Subsidiary 100.00% 2(87)(ii)
Luxembourg, Grand Duchy of
Luxembourg
58 $$ HCR Management Oy c/o Holiday Club Resorts Oy Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) Hitsaajankatu 22, 5 00810
Helsinki
59 $$ Holiday Club Resorts Oy Hitsaajankatu 22, 00810 Helsinki Foreign Company Subsidiary 85.61% 2(87)(ii)
(w.e.f. 02.09.2015)
60 * Saimaa Gardens Arena Oy c/o Holiday Club Resorts Oy Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 19.01.2016) Hitsaajankatu 22, 00810 Helsinki
61 * Kiinteistö Oy Himos Gardens c/o Holiday Club Isännöinti PL Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 618, 33101 Tampere

Mahindra & Mahindra Limited 61

 Sr. Name of the Company Address of the Company CIN/GLN Holding / % Holdingβ Applicable
No. Subsidiary / Section
Associate
62 * Kiinteistö Oy Himoksen Tähti 2 Lapinniemenranta 12 33180 Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) Tampere
63 * Kiinteistö Oy Tunturinrivi Postipolku 5, 98900 Salla Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015)
64 * Kiinteistö Oy Vanha Ykköstii Hitsaajankatu 22, 00810 Helsinki Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015)
65 * Kiinteistö Oy Katinnurkka c/o Holiday Club Isännöinti PL Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 619, 33101 Tampere
66 * Kiinteistö Oy Tenetinlahti c/o Holiday Club Isännöinti PL Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 618, 33101 Tampere
67 * Kiinteistö Oy Mällösniemi c/o Holiday Club Resorts Oy Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) Hitsaajankatu 22, 00810 Helsinki
68 * Kiinteistö Oy Rauhan Ranta 1 c/o Holiday Club Resorts Oy Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) Hitsaajankatu 22, 00810 Helsinki
69 * Kiinteistö Oy Rauhan Ranta 2 Hitsaajankatu 22, 00810 Helsinki Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015)
70 * Kiinteistö Oy Tiurunniemi (w.e.f. c/o Holiday Club Isännöinti PL Foreign Company Subsidiary 100.00% 2(87)(ii)
02.09.2015) 618, 33101 Tampere
71 * Kiinteistö Oy Rauhan c/o Holiday Club Isännöinti PL Foreign Company Subsidiary 100.00% 2(87)(ii)
Liikekiinteistöt 1 (w.e.f. 02.09.2015) 619, 33101 Tampere
72 * Supermarket Capri Oy c/o Kauppakeskus Capri Oy Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) Vipelentie 3-5, 55320 Rauha
73 * Kiinteistö Oy Kylpyläntorni 1 c/o Holiday Club Isännöinti PL Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 618, 33101 Tampere
74 * Kiinteistö Oy Spa Lofts 2 c/o Holiday Club Isännöinti PL Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 619, 33101 Tampere
75 * Kiinteistö Oy Spa Lofts 3 c/o Holiday Club Isännöinti PL Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 619, 33101 Tampere
76 * Kiinteistö Oy Kuusamon Pulkkajärvi c/o Holiday Club Isännöinti PL Foreign Company Subsidiary 100.00% 2(87)(ii)
1 (w.e.f. 02.09.2015) 619, 33101 Tampere
77 * Caribia Service Oy c/o Holiday Club Isännöinti PL Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 619, 33101 Tampere
78 * Holiday Club Rus LLC Bolshaya Konushennaya str, 8. Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 191186 St-Petersburg, Russia
79 * Suomen Vapaa-aikakiinteistöt Oy c/o Holiday Club Resorts Oy, Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) Lapinniemenranta 12 33180
Tampere
80 * Holiday Club Sweden Ab Åre, Box 68, 83010 Åre Foreign Company Subsidiary 100.00% 2(87)(ii)
Sweden (w.e.f. 02.09.2015)
81 ** Holiday Club Sport and Spa AB Box 68, 830 14 Åre, State Foreign Company Subsidiary 51.00% 2(87)(ii)
(w.e.f. 01.12.2015) (Formerly known Jamtlands Lan, Åre Kummun
as Visionsbolaget 10088 AB)
82 ** Åre Semesterby A Åre Semesterby A AB, Box 68, Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 83013 ÅRE
83 ** Åre Semesterby B Åre Semesterby B AB, Box 68, Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 83013 ÅRE
84 ** Åre Semesterby C Åre Semesterby C AB, Box 68, Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 83013 ÅRE
85 ** Åre Semesterby D Åre Semesterby D AB, Box 68, Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) 83013 ÅRE
86 ** Åre Villas AB 1 c/o Holiday Club Sweden AB, Foreign Company Subsidiary 100.00% 2(87)(ii)
(w.e.f. 02.09.2015) Box 68, 830 14 ÅRE

62 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Sr. Name of the Company Address of the Company CIN/GLN Holding / % Holdingβ Applicable
No. Subsidiary / Section
Associate

87 ** Åre Villas AB 2 (w.e.f. 02.09.2015) c/o Holiday Club Sweden AB, Foreign Company Subsidiary 100.00% 2(87)(ii)
Box 68, 830 14 ÅRE
88 ** Ownership Services Ab (w.e.f. c/o Holiday Club Sweden Ab, Foreign Company Subsidiary 100.00% 2(87)(ii)
02.09.2015) Box 68, 83010 Åre
89 ** Holiday Club Canarias Investments Avenida Ministra Anna Lindh n°1. Foreign Company Subsidiary 100.00% 2(87)(ii)
S.L. (w.e.f. 02.09.2015) Amadores. Mogan 35130. Canary
Islands. Spain
90 *** Holiday Club Canarias Sales & Avenida Ministra Anna Lindh n°1. Foreign Company Subsidiary 100.00% 2(87)(ii)
Marketing S.L. (w.e.f. 02.09.2015) Amadores. Mogan 35130. Canary
Islands. Spain
91 *** Holiday Club Canarias Resort Avenida Ministra Anna Lindh n°1. Foreign Company Subsidiary 100.00% 2(87)(ii)
Management S.L. (w.e.f. Amadores. Mogan 35130. Canary
02.09.2015) Islands. Spain
92 Mahindra & Mahindra Financial Gateway Building, Apollo Bunder, L65921MH1991PLC059642 Subsidiary 51.20% 2(87)(ii)
Services Limited Mumbai-400001
93 ¥ Mahindra Insurance Brokers Mahindra Towers, Worli, U65990MH1987PLC042609 Subsidiary 85.00% 2(87)(ii)
Limited Mumbai-400018
94 ¥ Mahindra Rural Housing Finance Mahindra Towers, P. K. Kurne U65922MH2007PLC169791 Subsidiary 87.50% 2(87)(ii)
Limited Chowk, Worli, Mumbai-400018
95 ¥ Mahindra Asset Management 4th Floor, A-Wing, Mahindra U65900MH2013PTC244758 Subsidiary 100.00% 2(87)(ii)
Company Private Limited Towers, Dr. G M Bhosale Marg, P. K.
Kurne Chowk, Mumbai-400018
96 ¥ Mahindra Trustee Company Private Mahindra Towers, P. K. Kurne U67100MH2013PTC245464 Subsidiary 100.00% 2(87)(ii)
Limited Chowk, Worli, Mumbai-400018
97 Bristlecone Limited M&C Corporate Services Ltd., P.O. Foreign Company Subsidiary 76.87% 2(87)(ii)
Box 309GT, Ugland House, South
Church St., George Town, Grand
Cayman, Cayman Islands.
98 ± Bristlecone International AG Rheinweg 7, 8200 Schaffhausen Foreign Company Subsidiary 100.00% 2(87)(ii)
99 ± Bristlecone Consulting Limited 1500 Royal Centre 1055 West Foreign Company Subsidiary 100.00% 2(87)(ii)
Georgia Street Vancouver,
BC V6E 4N7.
100 ± Bristlecone Inc. 10 Almaden Blvd, Suite 600 San Foreign Company Subsidiary 100.00% 2(87)(ii)
Jose, CA 95113
101 ± Bristlecone UK Limited 125 Wood Street, London, Foreign Company Subsidiary 100.00% 2(87)(ii)
EC2V 7AN
102 ± Bristlecone (Malaysia) Sdn. Bhd. Unit 30-01, Level 30, Tower A, Foreign Company Subsidiary 100.00% 2(87)(ii)
Vertical Business Suite, Avenue
3, Bangsar South, No. 8, Jalan
Kerinchi, 59200 Kuala Lumpur
103 ± Bristlecone India Limited Gateway Building, Apollo Bunder, U30007MH1991PLC064368 Subsidiary 100.00% 2(87)(ii)
Mumbai-400 001
104 ≤ Bristlecone (Singapore) Pte. Limited 3, Anson Road, # 27-01 Springleaf Foreign Company Subsidiary 100.00% 2(87)(ii)
Tower, Singapore 079909.
105 ≤ Bristlecone GmbH Schiff-Martini & Cie. GmbH, Foreign Company Subsidiary 100.00% 2(87)(ii)
De-Saint-Exupéry-Straße 8, 60549
Frankfurt am Main, Germany
106 Mahindra Automobile Distributor Gateway Building, Apollo Bunder, U34100MH2005PTC153702 Subsidiary 95.00% 2(87)(ii)
Private Limited Mumbai-400 001
107 Mahindra Trucks and Buses Limited Gateway Building, Apollo Bunder, U63040MH1994PLC079098 Subsidiary 100.00% 2(87)(ii)
Mumbai-400 001
108 Mahindra Lifespace Developers 5th Floor, Mahindra Towers, L45200MH1999PLC118949 Subsidiary 50.80% 2(87)(ii)
Limited Worli,Mumbai-400018

Mahindra & Mahindra Limited 63

 Sr. Name of the Company Address of the Company CIN/GLN Holding / % Holdingβ Applicable
No. Subsidiary / Section
Associate
109 ^ Mahindra World City Developers Ground Floor “Mahindra Towers” U92490TN1997PLC037551 Subsidiary 89.00% 2(87)(ii)
Limited 17/18, Pattullous Road,
Chennai-600002.
110 + Mahindra Industrial Park Chennai Mahindra Towers, Ground Floor, U45209TN2014PLC098543 Subsidiary 60.00% 2(87)(ii)
Limited No. 17/18 Patullos Road,
Chennai 600002
111 ^ Mahindra World City (Jaipur) 4th Floor, 411, Neelkanth Towers, U45209RJ2005PLC021207 Subsidiary 74.00% 2(87)(ii)
Limited Bhawani Singh Road, C Scheme,
Jaipur, Rajasthan-302001
112 ^ Mahindra Integrated Township Administrative Block, Central U74140TN1996PLC068288 Subsidiary 99.14% 2(87)(ii)
Limited Avenue, Mahindra World City,
Natham Sub (PO), Chengelpet,
Kancheepuram,
Tamil Nadu-603002
113 ∞ Mahindra Residential Developers Mahindra World City U45200TN2008PLC066292 Subsidiary 100.00% 2(87)(ii)
Limited Administrative Block,
Chegalpattu, Tamil Nadu-603002
114 ^ Mahindra World City (Maharashtra) Mahindra Towers, 5th floor, Worli, U45309MH2005PLC156225 Subsidiary 100.00% 2(87)(ii)
Limited Mumbai-400018
115 ^ Knowledge Township Limited Mahindra Towers, 5th floor, Worli, U72900MH2007PLC173137 Subsidiary 100.00% 2(87)(ii)
Mumbai-400018
116 ^ Mahindra Bebanco Developers Mahindra Towers, 5th floor, Worli, U45203MH2008PLC183107 Subsidiary 70.00% 2(87)(ii)
Limited Mumbai-400018
117 ^ Industrial Township (Maharashtra) Mahindra Towers, 5th floor, Worli, U45203MH2008PLC184190 Subsidiary 100.00% 2(87)(ii)
Limited Mumbai-400018
118 ^ Mahindra Infrastructure Developers Mahindra Towers, P. K. Kurne U45201MH2001PLC131942 Subsidiary 100.00% 2(87)(ii)
Limited Chowk, Worli, Mumbai-400018
119 ^^ Mahindra Water Utilities Limited Gateway bldg., Apollo Bunder, U45205MH1999PLC121235 Subsidiary 99.00% 2(87)(ii)
(w.e.f. 27.07.2015) Mumbai, Maharashtra.
120 ^ Raigad Industrial & Business Park Mahindra Towers, 5th floor, Worli, U70102MH2009PLC193399 Subsidiary 100.00% 2(87)(ii)
Limited Mumbai-400018
121 ^ Anthurium Developers Limited Mahindra Towers, P. K. Kurne U70109MH2010PLC203619 Subsidiary 100.00% 2(87)(ii)
Chowk, Worli, Mumbai-400018
122 ^ Industrial Cluster Private Limited Mahindra Towers, 5th floor, Worli, U70102MH2013PTC241512 Subsidiary 100.00% 2(87)(ii)
Mumbai-400018
123 Mahindra Logistics Limited Mahindra Towers, P. K. Kurne U63000MH2007PLC173466 Subsidiary 84.01% 2(87)(ii)
Chowk, Worli, Mumbai-400018
124 ¥¥ Lords Freight (India) Private Limited Unit no 511, 5th Floor, Crescent U63030MH2011PTC216628 Subsidiary 60.00% 2(87)(ii)
Business Park, Samitha Complex,
Safedpul, Sakinaka, Andheri east,
Mumbai- 400072, India.
125 ¥¥ 2 x 2 Logistics Private Limited Mahindra Towers, P. K. Kurne U63000MH2012PTC237062 Subsidiary 55.00% 2(87)(ii)
Chowk, Worli, Mumbai-400018
126 Mahindra First Choice Services Mahindra Towers, P. K. Kurne U35999MH2008PLC180385 Subsidiary 100.00% 2(87)(ii)
Limited Chowk, Worli, Mumbai-400018
127 Mahindra eMarket Limited Mahindra Towers, P. K. Kurne U72900MH2000PLC129103 Subsidiary 69.00% 2(87)(ii)
(Formerly known as Mriyalguda Chowk, Worli, Mumbai-400018
Farm Solution Limited)
128 Mahindra Automotive Australia 4/20, Buttonwood Place, Foreign Company Subsidiary 100.00% 2(87)(ii)
Pty. Ltd. Willawong, QLD 4110, Australia
129 Defence Land Systems India Mahindra Towers, P. K. Kurne U29268MH2009PTC190702 Subsidiary 100.00% 2(87)(ii)
Limited Chowk, Worli, Mumbai-400018
130 Ssangyong Motor Company 455-12, Dongsak-ro, Foreign Company Subsidiary 72.85% 2(87)(ii)
Pyeongtack-si, South Korea.

64 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Sr. Name of the Company Address of the Company CIN/GLN Holding / % Holdingβ Applicable
No. Subsidiary / Section
Associate

131 = Ssangyong European Parts Center IABC 5253-5254, 4814 RD, Breda, Foreign Company Subsidiary 100.00% 2(87)(ii)
B.V Nethelands

132 = Ssangyong Motor (Shanghai) Beijing City, Chaoyang District, Foreign Company Subsidiary 100.00% 2(87)(ii)
Company Limited 32 Liangmaqiao Lu,
7layer 707-708, China

133 = SY Auto Capital Co., LTD 124, Teheran-ro, Gangnam-gu, Foreign Company Subsidiary 51.00% 2(87)(ii)
(w.e.f. 28.10.2015) Seoul, South Korea

134 EPC Industrié Limited H – 109 , MIDC , Ambad , L25200MH1981PLC025731 Subsidiary 54.76% 2(87)(ii)
Nashik-422010, Maharashtra

135 Mahindra Sanyo Special Steel 74, Ganesh Apartment, opp: U27310MH2011PTC223696 Subsidiary 51.00% 2(87)(ii)
Private Limited Sitaldevi temple, L.J. Road,
MAHIM (West), Mumbai -400016.

136 Mahindra Defence Systems Limited Mahindra Towers, P. K. Kurne U75220MH2012PLC233889 Subsidiary 100.00% 2(87)(ii)
Chowk, Worli, Mumbai-400018

137 ∆ Mahindra Telephonics Integrated Mahindra Towers, P. K. Kurne U75302MH2013PLC242268 Subsidiary 51.00% 2(87)(ii)
Systems Limited Chowk, Worli, Mumbai-400018

138 ∆ Mahindra Defence Naval Systems Mahindra Towers, P. K. Kurne U75144MH2012PTC231267 Subsidiary 100.00% 2(87)(ii)
Private Limited Chowk, Worli, Mumbai-400018

139 Mahindra HZPC Private Limited Mahindra Towers, Near U01403MH2013PTC242474 Subsidiary 59.95% 2(87)(ii)
Doordarshan Kendra, Pandurang
Budhkar Marg, Worli,
Mumbai-400018

140 Mahindra ‘Electoral Trust’ Mahindra Towers, P. K. Kurne U93000MH2013NPL251507 Subsidiary 100.00% 2(87)(ii)
Company Chowk, Worli, Mumbai-400018

141 Orizonte Business Solutions Mahindra towers, Pandurang U60231MH2000PLC128757 Subsidiary 100.00% 2(87)(ii)
Limited (Formerly known as Mega Budhkar Marg, Near.
One Stop Farm Services Limited) Doordarshan kendra, Worli,
(w.e.f. 25.11.2015) Mumbai Maharashtra

142 Mahindra and Mahindra South Mahindra & Mahindra South Foreign Company Subsidiary 100.00% 2(87)(ii)
Africa (Proprietary) Limited Africa (Proprietary) Limited,
PO Box 69079, Highveld
Park 0169, Eco Fusion no 6,
Block C, First floor, 324 Witch
Hazel Street, Highveld X59,
Pretoria, South Africa.

143 NBS International Limited 10 STONE Bldg., Shop No. 1, U18101MH1995PLC095482 Subsidiary 100.00% 2(87)(ii)
Opp. Chowpatty Sea Face,
Mumbai- 400007

144 Mahindra Aerospace Private Mahindra Towers, P. K. Kurne U63033MH2008PTC179520 Subsidiary 66.67% 2(87)(ii)
Limited Chowk, Worli, Mumbai-400018

145 ++ Mahindra Aerostructures Private Mahindra Towers, U35122MH2011PTC212744 Subsidiary 100.00% 2(87)(ii)
Limited P. K. Kurne Chowk, Worli,
Mumbai-400018

146 ++ Mahindra Aerospace Australia Pty. C/-0, Pitcher Partners, level 19, 15 Foreign Company Subsidiary 100.00% 2(87)(ii)
Limited William street, Melbourne
VIC 3000

147 ⊕ Aerostaff Australia Pty. Ltd Latrobe Valley Airfield, 75 Foreign Company Subsidiary 100.00% 2(87)(ii)
Airfield Road, Morwell VIC 3840

148 ⊕ Gipp Aero Investments Pty. Limited Latrobe Valley Airfield, 75 Foreign Company Subsidiary 75.10% 2(87)(ii)
Airfield Road, Morwell VIC 3840

149  Gippsaero Pty. Limited Latrobe Valley Airfield, 75 Foreign Company Subsidiary 100.00% 2(87)(ii)
Airfield Road, Morwell VIC 3840

Mahindra & Mahindra Limited 65

 Sr. Name of the Company Address of the Company CIN/GLN Holding / % Holdingβ Applicable
No. Subsidiary / Section
Associate
150  Airvan10 Pty Ltd (w.e.f. 10.12.2015) C/- Gippsaero Pty Ltd, Latrobe Foreign Company Subsidiary 100.00% 2(87)(ii)
Regional Airport, Airfield Road,
Traralgon VIC 3844
151  GA8 Airvan Pty. Limited Latrobe Valley Airfield, 75 Foreign Company Subsidiary 100.00% 2(87)(ii)
Airfield Road, Morwell VIC 3840
152  GA200 Pty. Limited Latrobe Valley Airfield, 75 Foreign Company Subsidiary 100.00% 2(87)(ii)
Airfield Road, Morwell VIC 3840
153  Airvan Flight Services Pty. Limited Latrobe Valley Airfield, 75 Foreign Company Subsidiary 100.00% 2(87)(ii)
Airfield Road, Morwell VIC 3840
154  Nomad TC Pty. Limited Latrobe Valley Airfield, 75 Foreign Company Subsidiary 100.00% 2(87)(ii)
Airfield Road, Morwell VIC 3840
155 Swaraj Engines Limited Phase IV, Industrial Area, S.A.S. L50210PB1985PLC006473 Associate 33.22% 2(6)
Nagar (Mohali), Punjab
156 Kota Farm Services Limited Mahindra Towers, P. K. Kurne U02005MH2001PLC131699 Associate 45.00% 2(6)
Chowk, Worli, Mumbai-400018
157 Mahindra & Mahindra Contech Gateway Building, Apollo Bunder, U74140MH1992PLC066606 Associate 23.33% 2(6)
Limited Mumbai-400039
158 Tech Mahindra Limited Gateway Building, Apollo Bunder, L64200MH1986PLC041370 Associate 26.48% 2(6)
Mumbai-400001
159 Mitsubishi Mahindra Agricultural 667-1 Iya-machi, Higashiizumo- Foreign Company Associate 33.33% 2(6)
Machinery Co., Ltd. (w.e.f. cho, Matsue-city, Shimane-
01.10.2015) prefecture, Japan
160 Mahindra Sona Limited Gateway Building, Apollo Bunder, U30007MH1994PLC081637 Associate 29.77% 2(6)
Mumbai-400001
161 Mahindra Construction Company Mahindra Towers, P. K. Kurne U45200MH1992PLC068846 Associate 37.49% 2(6)
Limited Chowk, Worli, Mumbai-400018
162 Officemartindia.com Limited Gateway Building, Apollo Bunder, U74999MH2000PLC126610 Associate 50.00% 2(6)
Mumbai-400001

β Percentage holding in Subsidiaries represents aggregate percentage of shares held by the Company and/or its subsidiaries.
# a subsidiary of Mahindra Engineering and Chemical Products Limited. @ @ a subsidiary of MHR Holdings (Mauritius) Limited.
## a subsidiary of Retail Initiative Holdings Limited. $$ a subsidiary of Covington S.ar.l.
### a subsidiary of Mahindra Retail Private Limited. * a subsidiary of Holiday Club Resorts Oy.
• a subsidiary of Mahindra Overseas Investment Company (Mauritius) ** a subsidiary of Holiday Club Sweden Ab Åre.
Ltd. *** a subsidiary of Holiday Club Canarias Investments S.L.
Ω a subsidiary of Mahindra Vehicle Manufacturers Limited. ¥ a subsidiary of Mahindra & Mahindra Financial Services Limited.
ΩΩ a subsidiary of Mahindra Two Wheelers Limited. ± a subsidiary of Bristlecone Limited.
ΩΩΩ a subsidiary of Mahindra Two Wheelers Europe Holdings S.ar.l. ≤ a subsidiary of Bristlecone India Limited.
! a subsidiary of Peugeot Motocycles S.A.S. ^ a subsidiary of Mahindra Lifespace Developers Limited.
£ a subsidiary of Mahindra Intertrade Limited. + a subsidiary of Mahindra World City Developers Limited.
σ a subsidiary of Mahindra USA, Inc. ∞ a subsidiary of Mahindra Integrated Township Limited.
≡ a subsidiary of Mahindra Agri Solutions Limited. ^^ a subsidiary of Mahindra Infrastructure Developers Limited.
~ a subsidiary of Mahindra Consulting Engineers Limited. ¥¥ a subsidiary of Mahindra Logistics Limited.
Ø a subsidiary of Mahindra Holdings Limited. = a subsidiary of Ssangyong Motor Company.
ØØ a subsidiary of Mahindra Susten Private Limited. ∆ a subsidiary of Mahindra Defence Systems Limited.
 a subsidiary of Mahindra Renewables Private Limited. ++ a subsidiary of Mahindra Aerospace Private Limited.
@ a subsidiary of Mahindra Holidays & Resorts India Limited. ⊕ a subsidiary of Mahindra Aerospace Australia Pty. Limited.
$ a subsidiary of MH Boutique Hospitality Limited.  a subsidiary of Gipp Aero Investments Pty. Limited.

66 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

IV. SHAREHOLDING PATTERN (Equity Share Capital Break-up as percentage of Total Equity)
i) Category-wise Shareholding
No. of Shares held at the beginning of the No. of Shares held at the end of the year
year [As on 1st April, 2015] [As on 31st March, 2016] % Change
Category of Shareholders during
Demat Physical Total % of Total Demat Physical Total % of Total the year
Shares Shares

A. Promoters

(1) Indian

a) Individual/ HUF 3998552 0 3998552 0.64 3972046 0 3972046 0.64 0.00

b) Central Govt 0 0 0 0.00 0 0 0 0.00 0.00

c) State Govt(s) 0 0 0 0.00 0 0 0 0.00 0.00

d) Bodies Corp. 71128386 0 71128386 11.45 71128386 0 71128386 11.45 0.00

e) Banks / FI 0 0 0 0.00 0 0 0 0.00 0.00

f) Any other

i) Bharat N Doshi, A. K. 51835214 0 51835214 8.35 51835214 0 51835214 8.35 0.00

Nanda – Trustees –
M&M Benefit Trust

ii) Mahindra And 29700106 0 29700106 4.78 28458577 0 28458577 4.58 -0.20
Mahindra Employees
Stock Option Trust

iii) Rajan Raghunath 2030870 0 2030870 0.33 2030870 0 2030870 0.33 0.00
Surve, Vijay
Bhalchandra
Thakurdesai, Daxa
Jawahar Baxi –
Trustees – M&M
Employees Welfare
Funds

Sub-total (A) (1) 158693128 0 158693128 25.55 157425093 0 157425093 25.35 -0.20

(2) Foreign

a) NRIs - Individuals 605772 0 605772 0.10 563922 0 563922 0.09 -0.01

b) Others - Individuals 0 0 0 0.00 0 0 0 0.00 0.00

c) Bodies Corp 0 0 0 0.00 0 0 0 0.00 0.00

d) Banks / FI 0 0 0 0.00 0 0 0 0.00 0.00

e) Any Other 0 0 0 0.00 0 0 0 0.00 0.00

Sub-total (A) (2) 605772 0 605772 0.10 563922 0 563922 0.09 -0.01

Total Shareholding of Promoter

(A) = (A) (1)+(A) (2) 159298900 0 159298900 25.65 157989015 0 157989015 25.44 -0.21

Mahindra & Mahindra Limited 67

 No. of Shares held at the beginning of the No. of Shares held at the end of the year
year [As on 1st April, 2015] [As on 31st March, 2016] % Change
Category of Shareholders during
Demat Physical Total % of Total Demat Physical Total % of Total the year
Shares Shares

B. Public Shareholding

1. Institutions
a) Mutual Funds / UTI 16522890 1020 16523910 2.66 18738982 1020 18740002 3.02 0.36
b) Banks / FI 1584917 44532 1629449 0.26 994491 44532 1039023 0.17 -0.09
c) Central Govt 300036 0 300036 0.05 415201 0 415201 0.07 0.02
d) State Govt(s) 0 442132 442132 0.07 0 442132 442132 0.07 0.00
e) Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00
f) Insurance Companies 95707419 5912 95713331 15.41 91765099 5912 91771011 14.77 -0.64
g) FIIs 211196535 7736 211204271 34.00 132108961 7736 132116697 21.27 -12.73
h) Foreign Venture Capital
Funds 0 0 0 0.00 0 0 0 0.00 0.00
i) Others (specify)
i) Foreign Portfolio-Corp 22524345 0 22524345 3.63 100010866 0 100010866 16.10 12.47
Sub-total (B)(1)- 347836142 501332 348337474 56.08 344033600 501332 344534932 55.47 -0.61

2. Non-Institutions

a) Bodies Corp.

i) Indian 27942981 68092 28011073 4.51 31431408 68068 31499476 5.07 0.56

ii) Overseas 1607720 240 1607960 0.26 1607720 240 1607960 0.26 0.00

b) Individuals

i) Individual shareholders
holding nominal share
capital upto Rs. 1 lakh 32193062 5007554 37200616 5.99 31584253 4526639 36110892 5.81 -0.18

ii) Individual shareholders

holding nominal share
capital in excess of Rs.1 lakh 8813500 0 8813500 1.42 8590479 182448 8772927 1.42 0.00

c) Others (specify)

i) Non Resident Indians 1567257 359310 1926567 0.31 1603548 337694 1941242 0.31 0.00

ii) Foreign Nationals 569 0 569 0.00 544 0 544 0.00 0.00

iii) Trusts 1673721 0 1673721 0.27 2286196 0 2286196 0.37 0.10

iv) Clearing Members 426549 0 426549 0.07 1443265 0 1443265 0.23 0.16

v) Foreign Corporate Bodies 381622 0 381622 0.06 375352 0 375352 0.06 0.00

Sub-total (B)(2)- 74606981 5435196 80042177 12.89 78922765 5115089 84037854 13.53 0.64

Total Public Shareholding 422443123 5936528 428379651 68.97 422956365 5616421 428572786 69.00 0.03
(B)=(B)(1)+ (B)(2)

C. Shares held by Custodian for GDRs &

ADRs 33412801 1032 33413833 5.38 34529551 1032 34530583 5.56 0.18

Grand Total (A+B+C) 615154824 5937560 621092384 100.00 615474931 5617453 621092384 100.00 0.00

68 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

ii) Shareholding of Promoters

Shareholding at the beginning of the year Shareholding at the end of the year
[As on 1st April, 2015] [As on 31st March, 2016] % change in
No. of Shares % of total % of Shares No. of Shares % of total % of Shares shareholding
Sl. No Shareholder’s Name
Shares of the Pledged / Shares of the Pledged / during the
company encumbered to company encumbered to year
total shares total shares

1 Keshub Mahindra 442296 0.07 0.00 442296 0.07 0.00 0.00

2 Anand Gopal Mahindra 715004 0.12 0.00 715004 0.12 0.00 0.00

3 Anjali Mehra 142604 0.02 0.00 141104 0.02 0.00 0.00

4 Anuja P Sharma 34259 0.00 0.00 34259 0.00 0.00 0.00

5 Anuradha Mahindra 228545 0.04 0.00 228545 0.04 0.00 0.00

6 Gautam P Khandelwal 300 0.00 0.00 300 0.00 0.00 0.00

7 Leena S Labroo 786192 0.13 0.00 706192 0.12 0.00 -0.01

8 Radhika Nath 46808 0.00 0.00 46808 0.00 0.00 0.00

9 Sanjay Labroo 72720 0.01 0.01 72720 0.01 0.01 0.00

10 Sudha K Mahindra 726016 0.12 0.00 726016 0.12 0.00 0.00

11 Uma R Malhotra 779808 0.13 0.00 754802 0.12 0.00 -0.01

12 Deveshwar Jagat Sharma 12000 0.00 0.00 12000 0.00 0.00 0.00

13 Dhruv S Sharma 12000 0.00 0.00 12000 0.00 0.00 0.00

14 Yuthica Keshub Mahindra 605772 0.10 0.00 563922 0.09 0.00 -0.01

15 Nisheeta Labroo 0 0.00 0.00 80000 0.02 0.00 0.02

16 Kema Services International Pvt Ltd 367416 0.06 0.00 367416 0.06 0.00 0.00

17 Prudential Management And Services 70760970 11.39 1.58 70760970 11.39 1.29 0.00
Pvt. Ltd.

18 Mahindra and Mahindra Employees 29700106 4.78 0.00 28458577 4.58 0.00 -0.20
Stock Option Trust

19 Rajan Raghunath Surve, Vijay 1263156 0.21 0.00 1263156 0.21 0.00 0.00
Bhalchandra Thakurdesai, Daxa
Jawahar Baxi – Trustees – M&M
Employees Welfare Fund No. 1

20 Rajan Raghunath Surve, Vijay 682914 0.11 0.00 682914 0.11 0.00 0.00
Bhalchandra Thakurdesai, Daxa
Jawahar Baxi – Trustees – M&M
Employees Welfare Fund No. 2

21 Rajan Raghunath Surve, Vijay 84800 0.01 0.00 84800 0.01 0.00 0.00
Bhalchandra Thakurdesai, Daxa
Jawahar Baxi – Trustees – M&M
Employees Welfare Fund No. 3

22 Bharat N Doshi, A.k. Nanda – 51835214 8.35 0.00 51835214 8.35 0.00 0.00
Trustees – M&M Benefit Trust

Total 159298900 25.65 1.59 157989015 25.44 1.30 -0.21

Mahindra & Mahindra Limited 69

 iii) Change in Promoters’ Shareholding (please specify, if there is no change)
Shareholding at the beginning of the Increase/ Cumulative Shareholding
Sl year [As on 1st April, 2015] Decrease in during the year
Particulars No. of
No. No. of shares % of total shares of No. of shares % of total shares of
shares
the company the company

1 At the beginning of the year - As on 01.04.2015 159298900 25.65

2 Decrease - 21.04.2015 $ -32498 159266402 25.64

3 Decrease - 12.05.2015 $ -181870 159084532 25.61

4 Decrease - 13.05.2015 $ -364 159084168 25.61

5 Decrease - 24.06.2015 $ -116035 158968133 25.59

6 Decrease - 08.07.2015 $ -53585 158914548 25.59

7 Decrease - 20.08.2015 $ -81677 158832871 25.57

8 Decrease - 14.09.2015 $ -64612 158768259 25.56

9 Decrease - 07.10.2015 $ -85766 158682493 25.55

10 Decrease - 24.11.2015 $ -28971 158653522 25.54

11 Decrease - 17.12.2015 $ -74834 158578688 25.53

12 Decrease - 21.12.2015 - Market Sale ^ -5871 158572817 25.53

13 Decrease - 21.12.2015 - Market Sale # -10000 158562817 25.53

14 Decrease - 30.12.2015 - Market Sale ^ -4000 158558817 25.53

15 Decrease - 30.12.2015 - Market Sale # -4500 158554317 25.53

16 Decrease - 31.12.2015 - Market Sale ^ -6000 158548317 25.53

17 Decrease - 31.12.2015 - Market Sale # -1000 158547317 25.53

18 Decrease - 01.01.2016 - Market Sale ^ -9135 158538182 25.53

19 Decrease - 01.01.2016 - Market Sale # -20000 158518182 25.52

20 Decrease - 08.01.2016 $ -67310 158450872 25.51

21 Decrease - 10.02.2016 $ -84310 158366562 25.50

22 Decrease - 17.02.2016 - Transfer by Way of gift * -80000 158286562 25.49

23 Increase - 17.02.2016 - Received by Way of gift * 80000 158366562 25.50

24 Decrease - 24.02.2016 $ -111023 158255539 25.48

25 Decrease - 01.03.2016 - Market Sale α -1500 158254039 25.48

26 Decrease - 01.03.2016 - Market Sale # -5550 158248489 25.48

27 Decrease - 11.03.2016 - Market Sale # -800 158247689 25.48

28 Decrease - 11.03.2016 $ -109854 158137835 25.46

29 Decrease - 23.03.2016 $ -148820 157989015 25.44

30 At the End of the year - As on 31.03.2016 157989015 25.44

$ Transfer of Shares by Mahindra & Mahindra Employees' Stock Option Trust, pursuant to exercise of options by employees.
^ Transfer by Uma Malhotra
# Transfer by Yuthica Mahindra
* Gift by Leena Labroo to Nisheeta Labroo
α Transfer by Anjali Mehra

70 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs)

1. LIFE INSURANCE CORPORATION OF INDIA

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of
No. of Shares % of total shares No. of Shares % of total shares
shares
of the Company of the Company
At the beginning of the
year - 01.04.2015 78203359 12.59
10.04.2015 Increase / Transfer 8000 78211359 12.59
29.05.2015 Decrease / Transfer -20000 78191359 12.59
26.06.2015 Decrease / Transfer -10000 78181359 12.59
10.07.2015 Decrease / Transfer -50000 78131359 12.58
17.07.2015 Decrease / Transfer -25399 78105960 12.58
24.07.2015 Decrease / Transfer -82205 78023755 12.56
07.08.2015 Decrease / Transfer -3847 78019908 12.56
14.08.2015 Decrease / Transfer -12000 78007908 12.56
21.08.2015 Decrease / Transfer -25000 77982908 12.56
11.09.2015 Increase / Transfer 837828 78820736 12.69
18.09.2015 Increase / Transfer 421216 79241952 12.76
25.09.2015 Increase / Transfer 48519 79290471 12.77
16.10.2015 Decrease / Transfer -22913 79267558 12.76
23.10.2015 Decrease / Transfer -1544 79266014 12.76
27.11.2015 Decrease / Transfer -30880 79235134 12.76
04.12.2015 Decrease / Transfer -85750 79149384 12.74
12.02.2016 Decrease / Transfer -3000 79146384 12.74
04.03.2016 Decrease / Transfer -109677 79036707 12.73
11.03.2016 Decrease / Transfer -590197 78446510 12.63
18.03.2016 Decrease / Transfer -119871 78326639 12.61
25.03.2016 Decrease / Transfer -660963 77665676 12.50
31.03.2016 Decrease / Transfer -415405 77250271 12.44
At the end of the year –
31.03.2016 77250271 12.44

2. DODGE AND COX INTERNATIONAL STOCK FUND

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of Shares % of total shares No. of No. of Shares % of total shares
of the Company shares of the Company
At the beginning of the
year – 01.04.2015 14612138 2.35
10.04.2015 Increase / Transfer 29501 14641639 2.36
17.04.2015 Increase / Transfer 315199 14956838 2.41
24.04.2015 Increase / Transfer 647319 15604157 2.51
01.05.2015 Increase / Transfer 516826 16120983 2.60
08.05.2015 Increase / Transfer 230645 16351628 2.63
15.05.2015 Increase / Transfer 171180 16522808 2.66
At the end of the year –
31.03.2016 16522808 2.66

Mahindra & Mahindra Limited 71

 3. NATIONAL WESTMINSTER BANK PLC AS DEPOSITARY OF FIRST STATE ASIA PACIFIC LEADERS FUND A SUB FUND OF FIRST STATE INVESTMENTS ICVC
Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of Shares % of total shares No. of No. of Shares % of total shares
of the company shares of the company
At the beginning of the
year – 01.04.2015 11607861 1.87
10.07.2015 Decrease / Transfer -210290 11397571 1.84
17.07.2015 Decrease / Transfer -771192 10626379 1.71
21.08.2015 Decrease / Transfer -56813 10569566 1.70
28.08.2015 Decrease / Transfer -743871 9825695 1.58
04.09.2015 Decrease / Transfer -840871 8984824 1.45
11.09.2015 Decrease / Transfer -359381 8625443 1.39
At the end of the year –
31.03.2016 8625443 1.39

4. GOVERNMENT OF SINGAPORE
Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of Shares % of total shares No. of No. of Shares % of total shares
of the Company shares of the Company
At the beginning of the
year - 01.04.2015 11566240 1.86
10.04.2015 Increase / Transfer 49582 11615822 1.87
24.04.2015 Decrease / Transfer -4197 11611625 1.87
01.05.2015 Decrease / Transfer -138961 11472664 1.85
08.05.2015 Decrease / Transfer -99698 11372966 1.83
15.05.2015 Increase / Transfer 86327 11459293 1.85
29.05.2015 Decrease / Transfer -85703 11373590 1.83
05.06.2015 Increase / Transfer 138296 11511886 1.85
12.06.2015 Decrease / Transfer -7560 11504326 1.85
03.07.2015 Increase / Transfer 137672 11641998 1.87
10.07.2015 Increase / Transfer 4784 11646782 1.88
31.07.2015 Increase / Transfer 54124 11700906 1.88
07.08.2015 Increase / Transfer 134165 11835071 1.91
21.08.2015 Decrease / Transfer -16919 11818152 1.90
28.08.2015 Increase / Transfer 273207 12091359 1.95
04.09.2015 Increase / Transfer 438260 12529619 2.02
11.09.2015 Decrease / Transfer -191213 12338406 1.99
25.09.2015 Increase / Transfer 14933 12353339 1.99
09.10.2015 Increase / Transfer 336289 12689628 2.04
23.10.2015 Decrease / Transfer -5676 12683952 2.04
30.10.2015 Decrease / Transfer -82227 12601725 2.03
06.11.2015 Decrease / Transfer -12586 12589139 2.03
13.11.2015 Increase / Transfer 207444 12796583 2.06
20.11.2015 Decrease / Transfer -8972 12787611 2.06
27.11.2015 Decrease / Transfer -162563 12625048 2.03
04.12.2015 Decrease / Transfer -58006 12567042 2.02
11.12.2015 Decrease / Transfer -24843 12542199 2.02

72 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

4. GOVERNMENT OF SINGAPORE
Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of Shares % of total shares No. of No. of Shares % of total shares
of the Company shares of the Company
18.12.2015 Increase / Transfer 55388 12597587 2.03
31.12.2015 Decrease / Transfer -29504 12568083 2.02
08.01.2016 Increase / Transfer 125705 12693788 2.04
15.01.2016 Decrease / Transfer -5477 12688311 2.04
22.01.2016 Increase / Transfer 199824 12888135 2.08
29.01.2016 Increase / Transfer 186622 13074757 2.11
05.02.2016 Increase / Transfer 397563 13472320 2.17
12.02.2016 Increase / Transfer 94059 13566379 2.18
04.03.2016 Decrease / Transfer -60331 13506048 2.17
11.03.2016 Decrease / Transfer -3606 13502442 2.17
25.03.2016 Increase / Transfer 22724 13525166 2.18
31.03.2016 Increase / Transfer 73247 13598413 2.19
At the end of the year –
31.03.2016 13598413 2.19

5. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of Shares % of total shares No. of No. of Shares % of total shares
of the Company shares of the Company
At the beginning of the
year - 01.04.2015 11287225 1.82

10.04.2015 Increase / Transfer 36092 11323317 1.82

17.04.2015 Increase / Transfer 51562 11374879 1.83

24.04.2015 Increase / Transfer 10560 11385439 1.83

01.05.2015 Increase / Transfer 7819 11393258 1.83

08.05.2015 Increase / Transfer 159346 11552604 1.86

15.05.2015 Increase / Transfer 30827 11583431 1.87

22.05.2015 Increase / Transfer 72471 11655902 1.88

29.05.2015 Increase / Transfer 15012 11670914 1.88

05.06.2015 Decrease / Transfer -164743 11506171 1.85

12.06.2015 Decrease / Transfer -68523 11437648 1.84

19.06.2015 Increase / Transfer 45025 11482673 1.85

26.06.2015 Decrease / Transfer -3331 11479342 1.85

30.06.2015 Increase / Transfer 3328 11482670 1.85

03.07.2015 Increase / Transfer 11870 11494540 1.85

10.07.2015 Increase / Transfer 43944 11538484 1.86

17.07.2015 Increase / Transfer 44057 11582541 1.86

24.07.2015 Increase / Transfer 13843 11596384 1.87

07.08.2015 Decrease / Transfer -22127 11574257 1.86

Mahindra & Mahindra Limited 73

 5. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD
Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of Shares % of total shares No. of No. of Shares % of total shares
of the Company shares of the Company

14.08.2015 Decrease / Transfer -13558 11560699 1.86

21.08.2015 Increase / Transfer 10614 11571313 1.86

28.08.2015 Increase / Transfer 77030 11648343 1.88

04.09.2015 Increase / Transfer 43717 11692060 1.88

11.09.2015 Increase / Transfer 65618 11757678 1.89

18.09.2015 Decrease / Transfer -16880 11740798 1.89

25.09.2015 Increase / Transfer 35695 11776493 1.90

30.09.2015 Decrease / Transfer -273914 11502579 1.85

09.10.2015 Increase / Transfer 130189 11632768 1.87

16.10.2015 Increase / Transfer 6698 11639466 1.87

23.10.2015 Decrease / Transfer -5023 11634443 1.87

30.10.2015 Increase / Transfer 27433 11661876 1.88

6.11.2015 Increase / Transfer 242756 11904632 1.92

13.11.2015 Increase / Transfer 169407 12074039 1.94

20.11.2015 Decrease / Transfer -9967 12064072 1.94

27.11.2015 Increase / Transfer 55524 12119596 1.95

04.12.2015 Increase / Transfer 27648 12147244 1.96

11.12.2015 Decrease / Transfer -5418 12141826 1.95

18.12.2015 Increase / Transfer 126780 12268606 1.98

25.12.2015 Increase / Transfer 70945 12339551 1.99

31.12.2015 Increase / Transfer 40857 12380408 1.99

08.01.2016 Decrease / Transfer -24539 12355869 1.99

15.01.2016 Increase / Transfer 136952 12492821 2.01

22.01.2016 Increase / Transfer 406225 12899046 2.08

29.01.2016 Increase / Transfer 37490 12936536 2.08

05.02.2016 Increase / Transfer 12603 12949139 2.08

12.02.2016 Increase / Transfer 16751 12965890 2.09

19.02.2016 Increase / Transfer 197979 13163869 2.12

26.02.2016 Increase / Transfer 62131 13226000 2.13

04.03.2016 Decrease / Transfer -39216 13186784 2.12

11.03.2016 Increase / Transfer 118910 13305694 2.14

18.03.2016 Increase / Transfer 3736 13309430 2.14

25.03.2016 Increase / Transfer 68882 13378312 2.15

31.03.2016 Increase / Transfer 8531 13386843 2.16

At the end of the year
31.03.2016 13386843 2.16

74 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

6. EUROPACIFIC GROWTH FUND

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of Shares % of total shares No. of No. of Shares % of total shares
of the Company shares of the Company

At the beginning of the

year - 01.04.2015 10840000 1.75

25.09.2015 Increase / Transfer 2480071 13320071 2.14

30.09.2015 Increase / Transfer 1090739 14410810 2.32

09.10.2015 Increase / Transfer 1959257 16370067 2.64

16.10.2015 Increase / Transfer 2732037 19102104 3.08

23.10.2015 Increase / Transfer 637896 19740000 3.18

30.10.2015 Increase / Transfer 1040000 20780000 3.35

20.11.2015 Increase / Transfer 1904732 22684732 3.65

27.11.2015 Increase / Transfer 788494 23473226 3.78

04.12.2015 Increase / Transfer 1136698 24609924 3.96

18.12.2015 Increase / Transfer 76 24610000 3.96

22.01.2016 Increase / Transfer 212309 24822309 4.00

29.01.2016 Increase / Transfer 290117 25112426 4.04

05.02.2016 Increase / Transfer 77574 25190000 4.06

At the end of the year -

31.03.2016 25190000 4.06

7. ARANDA INVESTMENTS (MAURITIUS) PTE LTD

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of Shares % of total shares No. of No. of Shares % of total shares
of the Company shares of the Company

At the beginning of the

year - 01.04.2015 7950748 1.28

24.04.2015 Increase / Transfer 565511 8516259 1.37

01.05.2015 Increase / Transfer 1399965 9916224 1.60

08.05.2015 Increase / Transfer 951496 10867720 1.75

15.05.2015 Increase / Transfer 461690 11329410 1.82

12.06.2015 Increase / Transfer 183057 11512467 1.85

19.06.2015 Increase / Transfer 402572 11915039 1.92

04.09.2015 Decrease / Transfer -1352430 10562609 1.70

11.09.2015 Decrease / Transfer -1717618 8844991 1.42

18.09.2015 Decrease / Transfer -667799 8177192 1.32

25.09.2015 Decrease / Transfer -1278374 6898818 1.11

30.09.2015 Decrease / Transfer -66802 6832016 1.10

At the end of the year –

31.03.2016 6832016 1.10

Mahindra & Mahindra Limited 75

 8. GENERAL INSURANCE CORPORATION OF INDIA

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of
No. of Shares % of total shares No. of Shares % of total shares
shares
of the Company of the Company

At the beginning of the

year – 01.04.2015 7945400 1.28
30.06.2015 Decrease / Transfer -10000 7935400 1.28
03.07.2015 Decrease / Transfer -20000 7915400 1.27
10.07.2015 Decrease / Transfer -20000 7895400 1.27
24.07.2015 Decrease / Transfer -50000 7845400 1.26
07.08.2015 Decrease / Transfer -50000 7795400 1.26
23.10.2015 Decrease / Transfer -50000 7745400 1.25
30.10.2015 Decrease / Transfer -150000 7595400 1.22
06.11.2015 Decrease / Transfer -50000 7545400 1.21
27.11.2015 Decrease / Transfer -50000 7495400 1.21
04.12.2015 Decrease / Transfer -100000 7395400 1.19
05.02.2016 Decrease / Transfer -80000 7315400 1.18
12.02.2016 Decrease / Transfer -70000 7245400 1.17
26.02.2016 Decrease / Transfer -50000 7195400 1.16
04.03.2016 Decrease / Transfer -50000 7145400 1.15
18.03.2016 Decrease / Transfer -50000 7095400 1.14
31.03.2016 Decrease / Transfer -125606 6969794 1.12
At the end of the year -
31.03.2016 6969794 1.12

9. VANGUARD EMERGING MARKETS STOCK INDEX FUND, ASERIES OF VANGUARD INTERNATIONAL EQUITY INDEX

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of
No. of Shares % of total shares No. of Shares % of total shares
shares
of the Company of the Company

At the beginning of the

year – 01.04.2015 5427634 0.87

01.05.2015 Increase / Transfer 17446 5445080 0.88

08.05.2015 Increase / Transfer 19825 5464905 0.88

24.07.2015 Increase / Transfer 42818 5507723 0.89

14.08.2015 Decrease / Transfer -19825 5487898 0.88

21.08.2015 Decrease / Transfer -47580 5440318 0.88

28.08.2015 Decrease / Transfer -92781 5347537 0.86

04.09.2015 Decrease / Transfer -126880 5220657 0.84

11.09.2015 Decrease / Transfer -66612 5154045 0.83

25.09.2015 Decrease / Transfer -17446 5136599 0.83

30.09.2015 Decrease / Transfer -51113 5085486 0.82

20.11.2015 Decrease / Transfer -20628 5064858 0.82

27.11.2015 Decrease / Transfer -4814 5060044 0.81

76 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

9. VANGUARD EMERGING MARKETS STOCK INDEX FUND, ASERIES OF VANGUARD INTERNATIONAL EQUITY INDEX

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of
No. of Shares % of total shares No. of Shares % of total shares
shares
of the Company of the Company

04.12.2015 Decrease / Transfer -17603 5042441 0.81

18.12.2015 Decrease / Transfer -28362 5014079 0.81

25.12.2015 Decrease / Transfer -21140 4992939 0.80

31.12.2015 Decrease / Transfer -6204 4986735 0.80

15.01.2016 Decrease / Transfer -31752 4954983 0.80

22.01.2016 Decrease / Transfer -51509 4903474 0.79

29.01.2016 Decrease / Transfer -52594 4850880 0.78

05.02.2016 Decrease / Transfer -74894 4775986 0.77

12.02.2016 Decrease / Transfer -22400 4753586 0.77

26.02.2016 Decrease / Transfer -25640 4727946 0.76

04.03.2016 Decrease / Transfer -27646 4700300 0.76

11.03.2016 Increase / Transfer 12300 4712600 0.76

18.03.2016 Decrease / Transfer -19203 4693397 0.76

25.03.2016 Decrease / Transfer -31163 4662234 0.75

At the end of the year –
31.03.2016 4662234 0.75

10. ABU DHABI INVESTMENT AUTHORITY – GULAB

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of
No. of Shares % of total shares shares No. of Shares % of total shares
of the company of the company

At the beginning of the

year – 01.04.2015 5292158 0.85
22.05.2015 Decrease / Transfer -28100 5264058 0.85
05.06.2015 Increase / Transfer 45373 5309431 0.85
24.07.2015 Increase / Transfer 10619 5320050 0.86
21.08.2015 Decrease / Transfer -16963 5303087 0.85
28.08.2015 Decrease / Transfer -86353 5216734 0.84
04.09.2015 Decrease / Transfer -9769 5206965 0.84
20.11.2015 Decrease / Transfer -24584 5182381 0.83
27.11.2015 Decrease / Transfer -82208 5100173 0.82
04.12.2015 Decrease / Transfer -98072 5002101 0.81
22.01.2016 Increase / Transfer 18622 5020723 0.81

26.02.2016 Decrease / Transfer -38895 4981828 0.80

04.03.2016 Decrease / Transfer -11291 4970537 0.80

18.03.2016 Decrease / Transfer -659423 4311114 0.69

At the end of the year –

31.03.2016 4311114 0.69

Mahindra & Mahindra Limited 77

 11. STICHTING PENSIOENFONDS ABP

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of
No. of Shares % of total shares shares No. of Shares % of total shares
of the company of the company
At the beginning of the
year – 01.04.2015 5808006 0.94
24.04.2015 Decrease / Transfer -347139 5460867 0.88
08.05.2015 Decrease / Transfer -11882 5448985 0.88
29.05.2015 Decrease / Transfer -132490 5316495 0.86
30.06.2015 Decrease / Transfer -56271 5260224 0.85
03.07.2015 Decrease / Transfer -197696 5062528 0.82
07.08.2015 Increase / Transfer 11360 5073888 0.82
21.08.2015 Decrease / Transfer -5073888 0 0.00
At the end of the year –
31.03.2016 0 0

12. NEW WORLD FUND INC*

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of
No. of Shares % of total shares shares No. of Shares % of total shares
of the company of the company
At the beginning of the
year – 01.04.2015 1830500 0.29
30.09.2015 Increase / Transfer 324496 2154996 0.35
09.10.2015 Increase / Transfer 718933 2873929 0.46
16.10.2015 Increase / Transfer 1002499 3876428 0.62
23.10.2015 Increase / Transfer 234072 4110500 0.66
11.12.2015 Increase / Transfer 430000 4540500 0.73
26.02.2016 Increase / Transfer 420000 4960500 0.80
At the end of the year –
31.03.2016 4960500 0.80

13. NEW PERSPECTIVE FUND*

Increase or Decrease / Shareholding at the beginning of Increase/ Cumulative Shareholding during the year
Reasons the year [As on 1st April, 2015] Decrease in
No. of
No. of Shares % of total shares shares No. of Shares % of total shares
of the company of the company
At the beginning of the
year – 01.04.2015 0 0.00
09.10.2015 Increase / Transfer 1433820 1433820 0.23
16.10.2015 Increase / Transfer 1999356 3433176 0.55
23.10.2015 Increase / Transfer 466824 3900000 0.63
20.11.2015 Increase / Transfer 816317 4716317 0.76
27.11.2015 Increase / Transfer 312799 5029116 0.81
04.12.2015 Increase / Transfer 450884 5480000 0.88
26.02.2016 Increase / Transfer 205824 5685824 0.92
04.03.2016 Increase / Transfer 364176 6050000 0.97
At the end of the year –
31.03.2016 6050000 0.97

* Not in the list of Top 10 shareholders as on 01-04-2015. The same has been reflected above since the shareholder was one of the Top 10 shareholders as
on 31-03-2016.

78 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

v) Shareholding of Directors and Key Managerial Personnel:

Sl. Shareholding of each of the Directors and Key Managerial Personnel Shareholding at the beginning Increase/ Cumulative Shareholding
No. of the year Decrease in during the year
[As on 1st April, 2015] No. of
No. of shares % of total shares No. of shares % of total
shares of the shares of the
company company
I. Directors
1 Mr. Anand Gopal Mahindra (Chairman and Managing Director, Key
Managerial Personnel)
At the beginning of the year – 01.04.2015 715004 0.12
Date wise Increase / Decrease in Shareholding during the year specifying 0
the reasons for increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the end of the year – 31.03.2016 715004 0.12
2 Dr. Pawan Goenka [Executive Director & Group President (Auto and
Farm Sector), Key Managerial Personnel]
At the beginning of the year - 01.04.2015 157700 0.03
Increase - 12.05.2015 - Exercise of ESOPs 16944 174644 0.03
Decrease - 17.12.2015 - Transfer by way of Gift -174644 0 0.00
Increase - 17.12.2015 - Exercise of ESOPs 18668 18668 0.00
Decrease - 31.12.2015 - Market Sale -8000 10668 0.00
Decrease - 05.01.2016- Transfer by way of Gift -10668 0 0.00
Increase - 24.02.2016 - Exercise of ESOPs 14216 14216 0.00
Decrease - 09.03.2016 - Transfer by way of Gift -14216 0 0.00
At the end of the year – 31.03.2016 0 0.00
3 Mr. Bharat Doshi
At the beginning of the year – 01.04.2015 609724 0.10
Date wise Increase/Decrease in Shareholding during the year specifying
the reasons for increase/decrease (e.g. allotment/transfer/bonus/ sweat
equity etc):
As on 07.08.2015 (ceased to be a Director w.e.f. 07.08.2015) 609724 0.10
4 Mr. Deepak Parekh
At the beginning of the year – 01.04.2015 112180 0.02
Date wise Increase/Decrease in Shareholding during the year specifying 0
the reasons for increase/decrease (e.g. allotment/transfer/bonus/ sweat
equity etc):
At the end of the year – 31.03.2016 112180 0.02
5 Mr. Nadir B Godrej
At the beginning of the year – 01.04.2015 428019 0.07
Increase - 21.12.2015 - Market Purchase 2000 430019 0.07
Increase - 22.12.2015 - Market Purchase 4000 434019 0.07
Increase - 23.12.2015 - Market Purchase 2000 436019 0.07
Increase - 29.12.2015 - Market Purchase 765 436784 0.07
Increase - 30.12.2015 - Market Purchase 5000 441784 0.07
Increase - 31.12.2015 - Market Purchase 5000 446784 0.07
Increase - 04.01.2016 - Market Purchase 6948 453732 0.07
Increase - 05.01.2016 - Market Purchase 2000 455732 0.07
Increase - 06.01.2016 - Market Purchase 6000 461732 0.07
Increase - 08.01.2016 - Market Purchase 3000 464732 0.07
Increase - 16.02.2016 - Market Purchase 2000 466732 0.08
Increase - 17.02.2016 - Market Purchase 2000 468732 0.08
Increase - 03.03.2016 - Market Purchase 1000 469732 0.08
Increase - 08.03.2016 - Market Purchase 1000 470732 0.08
Increase - 10.03.2016 - Market Purchase 1000 471732 0.08

Mahindra & Mahindra Limited 79

Sl. Shareholding of each of the Directors and Key Managerial Personnel Shareholding at the beginning Increase/ Cumulative Shareholding
No. of the year Decrease in during the year
[As on 1st April, 2015] No. of
No. of shares % of total shares No. of shares % of total
shares of the shares of the
company company

Increase - 17.03.2016 - Market Purchase 3000 474732 0.08

Increase - 21.03.2016 - Market Purchase 1000 475732 0.08

Increase - 29.03.2016 - Market Purchase 1000 476732 0.08

Increase - 30.03.2016 - Market Purchase 2000 478732 0.08

Increase - 31.03.2016 - Market Purchase 1000 479732 0.08

At the end of the year – 31.03.2016 479732 0.08

6 Mr. M. M. Murugappan

At the beginning of the year – 01.04.2015 100000 0.02

Date wise Increase/Decrease in Shareholding during the year specifying 0

the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat
equity etc):

At the end of the year – 31.03.2016 100000 0.02

7 Mr. R. K. Kulkarni

At the beginning of the year – 01.04.2015 83088 0.01

Date wise Increase/Decrease in Shareholding during the year specifying 0

the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat
equity etc):

At the end of the year – 31.03.2016 83088 0.01

Note: Mr. Anupam Puri, Dr. Vishakha Desai, Mr. Vikram Singh Mehta and Mr. S.B. Mainak did not hold any shares of the Company during the Financial Year 2015-16.

Sl Shareholding of each of the Directors and Key Managerial Personnel Shareholding at the beginning Increase/ Cumulative Shareholding
No. of the year Decrease in during the year
[As on 1st April, 2015] No. of
shares
No. of shares % of total No. of shares % of total
shares of the shares of the
company company

II. Key Managerial Personnel

1 Mr. V S Parthasarathy

At the beginning of the year - 01.04.2015 60582 0.01

Date wise Increase/Decrease in Shareholding during the year specifying 0

the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat
equity etc):

At the end of the year - 31.03.2016 60582 0.01

2 Mr. Narayan Shankar

At the beginning of the year - 01.04.2015 15756 0.00

Decrease - 18.02.2016 - Market Sale -5600 10156 0.00

At the end of the year - 31.03.2016 10156 0.00

80 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment:
(Rs. lakhs)
Secured Loans Unsecured Deposits Total
excluding Loans Indebtedness
deposits

Indebtedness at the beginning of the financial year

i) Principal Amount 13,334.01 3,53,681.12 5,910.80 3,72,925.93

ii) Interest due but not paid – – – –

iii) Interest accrued but not due 480.18 1,046.62 304.54 1,831.34

Total (i+ii+iii) 13,814.19 3,54,727.74 6,215.34 3,74,757.27

Change in Indebtedness during the financial year

 Addition 1,113.15 60,504.92 371.11 61,989.18

 Reduction 14,926.67 1,25,154.72 4,210.49 1,44,291.88

Net Change (13,813.52) (64,649.80) (3,839.38) (82,302.70)

Indebtedness at the end of the financial year

i) Principal Amount 0.67 2,89,554.18 2,233.37 2,91,788.22

ii) Interest due but not paid – – – –

iii) Interest accrued but not due – 523.76 142.59 666.35

Total (i+ii+iii) 0.67 2,90,077.94 2,375.96 2,92,454.57

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

(Rs. lakhs)
Name of MD/WTD/ Manager
Sl
Particulars of Remuneration
No.
Mr. Anand Mahindra (MD/CEO) Dr. Pawan Goenka (WTD) Total Amount (Rs.)
1 Gross salary
(a) Salary as per provisions contained in Section 17(1) of the
Income-tax Act, 1961 293.86 283.09 576.95
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 5.04 26.30 31.34
(c) Profits in lieu of salary under Section 17(3) Income-tax
Act, 1961
2 Stock Option* 0.00 521.39 521.39

3 Sweat Equity

4 Commission – as % of profit 318.90 288.13 607.03

5 Others – contribution to funds 40.87 40.62 81.49

Total (A) 658.67 1,159.53 1,818.20

Ceiling as per the Act Rs. 41,363.57

(being 10% of the net profits of the Company calculated as per Section 198 of the
Companies Act, 2013)

* The amount indicates perquisite value of ESOPs of the Company exercised during the year.

Mahindra & Mahindra Limited 81

 B. Remuneration to other directors (Rs. lakhs)

82
Name of Directors Total
Amount
Sl. Mr. Deepak S. Mr. Nadir B. Mr. M. M. Mr. R. K. Mr. Anupam Dr. Vishakha Mr. Vikram Mr. Bharat Mr. S.B. Mainak^
Particulars of Remuneration
No. Parekh Godrej Murugappan Kulkarni* Puri N. Desai Singh Mehta Doshi@ (Nominee of LIC)

1 Independent Directors

Fee for attending board/ committee

Annual Report 2015-16

meetings 12.50 16.00 13.50 17.40 6.00 5.30 14.00 – – 84.70

Commission 24.00 20.00 24.00 24.00 20.00 24.00 20.00 – – 156.00

Others, please specify (Perquisite – – – – – – – – – –

value of ESOP)

Total (1) 36.50 36.00 37.50 41.40 26.00 29.30 34.00 – – 240.70

2 Other Non-Executive Directors

Fee for attending board/ committee

meetings – – – – – – – 6.60 4.00 10.60

Commission – – – – – – – 7.07 18.00 25.07

Others – Perquisite value of ESOPs, – – – – – – – 182.31 – 182.31

Housing, Car and Medical

Total (2) – – – – – – – 195.98 22.00 217.98

Total (B)=(1+2) 36.50 36.00 37.50 41.40 26.00 29.30 34.00 195.98 22.00 458.68

Total Managerial Remuneration # – – – – – – – – – 2276.88

Overall Ceiling as per the Act Rs. 4,136.36

(being 1% of the net profits of the Company calculated as per Section 198 of the Companies Act, 2013)

# Total remuneration to Managing Director, Whole-Time Director and other Directors (being the total of A and B).
@ Ceased to be a Director with effect from 7th August, 2015.
* The sitting fees and commission was paid to Khaitan & Co., in which Mr. R. K. Kulkarni is a Partner.
^ The sitting fees and commission was paid to LIC.
 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD (Rs. lakhs)

Sl. Particulars of Remuneration Key Managerial Personnel

No.
CS CFO Total

1 Gross salary

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 96.83 275.91 372.74

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0.82 3.55 4.37

(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 0.00 0.00 0.00

2 Stock Option 0.00 0.00 0.00

3 Sweat Equity 0.00 0.00 0.00

4 Commission – as % of profit 0.00 0.00 0.00

5 Others – contribution to funds 5.40 14.90 20.30

Total 103.05 294.36 397.41

VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES: NIL

Type Section of the Brief Description Details of Penalty / Authority [RD / Appeal made, if
Companies Act Punishment/ NCLT/ COURT] any (give Details)
Compounding fees
imposed

A. COMPANY

Penalty

Punishment

Compounding

B. DIRECTORS

A .
N.
Penalty

Punishment

Compounding

C. OTHER OFFICERS IN DEFAULT

Penalty

Punishment

Compounding

For and on behalf of the Board

ANAND G. MAHINDRA
Chairman & Managing Director
Mumbai, 30 th May, 2016

Mahindra & Mahindra Limited 83

Particulars of loans/advances, etc. pursuant to Para A of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

Loans and advances in the nature of loans to subsidiaries:

Rupees in crores

Name of the Company Balances as on Maximum

31st March 2016 outstanding
during the year

Mahindra Gujarat Tractor Limited 1.00 1.00

Mahindra Agri Solutions Limited (formerly known as Mahindra Shubhlabh Services Limited) 0.68 0.68

Bristlecone Limited 96.73 113.38

Mahindra Overseas Investment Company (Mauritius) Limited 77.18 77.18

Mahindra & Mahindra Financial Services Limited 300.00 300.00

Mahindra Vehicle Manufacturers Limited 1200.00 1200.00

The Company has not made any loans and advances in the nature of loans to associates.

84 Annual Report 2015-16

Management
Discussion and
Analysis
 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Management Discussion and Analysis

Mahindra & Mahindra Limited (M&M) or (Mahindra) is the INDUSTRY STRUCTURE, OVERVIEW AND
flagship company of the Mahindra Group, which consists of TRENDS
154 subsidiary companies with diverse business interests across
The Indian automotive industry comprises of a number of
the globe and aggregate revenues of around US $ 17.8 billion.
Indian-origin and multinational players with varying degrees
The Automotive and Farm Sectors (AFS) of M&M, continue
of presence in different segments. Today, nine of the top ten
to leverage ingenuity for creating products and technology
global automotive manufacturers have a presence in India
led services, which enable its customers and stakeholders to
which clearly points to its importance as a strategic market.
Rise. By focussing on customer centricity, frugal innovation
After more than a decade of establishing manufacturing base
and enhancing people’s capabilities, the Company continues
in India, MNC Original Equipment Manufacturers (OEMs) have
to consolidate its leadership position in the domestic market
garnered 85.6% share of the domestic Passenger Vehicles (PV)
while driving global expansion.
market. Many leading automotive MNCs have established India
For the year under review, The Automotive and Farm development centres and are developing and launching India
improvement in economy and Sectors, along with their specific products. At the same time, they are increasingly using
urban demand helped to drive subsidiary companies and India as an export base. Today, 21.3% of MNC production is
joint ventures, achieved
growth in the automotive exported from India. However, in the Commercial Vehicle (CV)
global sales of 8,81,314
industry. The rural economy space, India Origin OEMs continue to hold a large share (96.8%)
vehicles and tractors
continued to be under pressure (6,40,593 vehicles and of the domestic market.
for the second consecutive year 2,40,721 tractors), a Similarly, the domestic tractor market also has a mix of Indian
because of deficit monsoon. growth of 2.4% over the
origin and international manufacturers and is segmented by
This had an adverse impact on previous year.
horsepower.
the tractor industry and the
rural demand for vehicles.
Global Automotive Industry
In the Financial Year 2015-16, your Company sold 4,94,096
In the Calendar Year (CY) 2015, global automotive sales for
vehicles (a growth of 6.3% in comparison to the previous year)
Passenger and Commercial Vehicles stood at a record 89.6
and 2,14,173 tractors (decline of 8.8% over the previous year).
million, which was a growth of 2.0% over the previous year.
The Company’s Automotive and Farm Sectors, along with their This growth was primarily driven by China, USA, Germany, India
subsidiary companies and joint ventures, achieved global sales and UK, which collectively account for 58.1% of the global
of 8,81,314 vehicles and tractors (6,40,593 vehicles and 2,40,721 automotive market. Source: OICA (Organisation Internationale
tractors), a growth of 2.4% over the previous year. des Constructeurs d’Automobiles).

Mahindra & Mahindra Limited 87

China retained the distinction of being the world’s largest by RBI helped the affordability of finance. New launches by
automotive market for the 7 consecutive year with total sales
th
OEMs created the necessary excitement in the market. Cost of
of 24.6 million vehicles, a growth of 4.7%. However, slowdown ownership of an automobile is an important factor for demand
in the Chinese economy has impacted the auto industry growth and in Financial Year 2015-16, this factor was also on the positive
in the last two years. The US market which had hit a low in side due to benign price hikes and easing of vehicle finance rates.
2008, has recovered fully to attain all time high sales of 17.47 In the Financial Year 2015-16, perhaps the only pain point for the
million vehicles (previous high of 17.44 million in 2005), with a automotive industry was the deep slowdown in rural economy,
growth of 5.7% in 2015. which adversely impacted the demand for LCVs < 3.5T, vans and
motorcycles.
European auto sales continued to be positive on back
of a 9.4% growth by EU15 countries. Growth was seen in key In the PV segment, Cars grew 7.9% while the UV segment
markets like Germany at 5.5%, France at 6.1%, Italy at 15.6% grew 6.3%. Multiple launches in both cars and UVs were the
and UK at 7.7%. key drivers for PV growth. The launch of compact UVs with car
The automotive markets in Brazil and Russia continued to like comfort, fuel economy and competitive prices have led to
decline for the third consecutive year. In CY 2015, Brazil increased preference for UVs and also blurring of boundaries
automotive market was down by 26.6% while the Russian between sedan cars and UVs.
automotive market posted a decline of 44.5%. For Brazil as The Medium and Heavy Commercial Vehicle Goods Segment
well as Russia, the automotive sales were down by 32% and (MHCV), continued on the recovery started in the Financial
54% respectively, from the all-time high of 2012. Year 2014-15 and posted a robust growth of 31.9% in Financial
Year 2015-16. This growth is driven by replacement demand,
Indian Automotive Industry revival in mining and manufacturing sectors and uptick in the
The Financial Year 2015-16 was a turnaround year for the Indian infrastructure sector. However, in spite of two consecutive
automotive industry, with the industry (excluding 2W) growing years of good growth, the MHCV industry is 13.6% below the
7.1%. The PV industry grew 7.2% over the previous Financial Year peak volume of Financial Year 2011-12.
2014-15 and posted an all-time high volume of 2.8 million vehicles. The LCV Goods < 3.5T segment continued to be under pressure
The CV industry posted a due to the prolonged slowdown in Rural economy and poor
growth of 11.5% over the finance availability. The PIK-UP segment (LCV 2 to 3.5T) grew
In the PV
previous year, but the volumes 3.5% over the previous year but the volumes are 5% lower
segment, Cars
were still 15.5% from the all- grew 7.9% while the than the all-time high in Financial Year 2013-14. The LCV <
time high in Financial Year 2011- UV segment grew 6.3%. 2T segment reported positive growth in the fourth quarter
12. This gap is largely due to of the Financial Year 2015-16 after 14 consecutive quarters
the prolonged slowdown in the LCV < 2T segment, that continues of decline.
to suffer due to deep slowdown in the rural economy. The two
The growth in the two wheeler industry was subdued at
wheeler industry also posted an all-time high sales of 16.5 million
3% (was 7% over last 5 years), with motorcycles remaining
on back of robust demand for scooters.
flat on account of weak rural demand. The scooter segment
The demand for automobiles was driven by the Indian economy grew 11.8% driven by urban demand. The share of scooters
continuing on the growth path, coupled with moderate inflation in total two wheelers has grown from 13% in Financial Year
and low commodity prices. The easing of monetary policy 2005-06 to 31% in Financial Year 2015-16.

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The table below shows the size of various segments of the Indian auto industry and their growth rates spanning Financial Year
2013-14 to Financial Year 2015-16.

Auto Industry (Domestic Sales) YOY Growth

Segment
F14 F15 F16 F14 F15 F16

Cars 17,86,826 18,77,706 20,25,479 -4.7% 5.1% 7.9%

Utility Vehicles 5,25,839 5,52,135 5,86,664 -5.0% 5.0% 6.3%

Vans 1,90,844 1,71,395 1,77,535 -19.6% -10.2% 3.6%

Total Passenger Vehicles 25,03,509 26,01,236 27,89,678 -6.1% 3.9% 7.2%

MHCV 2,00,500 2,32,755 3,02,373 -25.4% 16.1% 29.9%

MHCV Passenger 38,709 36,837 43,885 -17.5% -4.8% 19.1%

M+ICV Goods (7.5 to 16.2T) 73,679 70,305 88,591 -30.2% -4.6% 26.0%

HCV Goods (>16.2T) 88,112 1,25,613 1,69,897 -24.2% 42.6% 35.3%

LCV 4,32,221 3,82,193 3,83,331 -17.6% -11.6% 0.3%

LCV Passenger 42,808 44,816 48,960 -10.6% 4.7% 9.2%

LCV Goods < 2T GVW 1,66,974 1,31,455 1,16,560 -32.5% -21.3% -11.3%

LCV Goods 2 to 3.5T GVW 1,93,025 1,77,132 1,83,414 1.4% -8.2% 3.5%

LCV Goods > 3.5T GVW 29,414 28,790 34,397 -24.2% -2.1% 19.5%

Total Commercial Vehicles 6,32,721 6,14,948 6,85,704 -20.2% -2.8% 11.5%

3W Passenger 3,85,384 4,31,984 4,41,091 -12.6% 12.1% 2.1%

3W Goods 94,701 1,00,642 97,001 -2.5% 6.3% -3.6%

Total 3 Wheelers 4,80,085 5,32,626 5,38,092 -10.8% 10.9% 1.0%

Scooters 36,02,744 45,00,920 50,31,678 23.2% 24.9% 11.8%

Motorcycles 1,04,79,817 1,07,26,013 1,07,00,466 3.9% 2.3% -0.2%

Mopeds 7,22,920 7,48,628 7,23,767 -8.3% 3.6% -3.3%

Total 2 Wheelers 1,48,05,481 1,59,75,561 1,64,55,911 7.3% 7.9% 3.0%

Total Domestic 1,84,21,796 1,97,24,371 2,04,69,385 3.5% 7.1% 3.8%

Domestic (Excl. 2W) 36,16,315 37,48,810 40,13,474 -9.5% 3.7% 7.1%

Mahindra & Mahindra Limited 89

Indian Tractor Industry domestic sales. The states of Tamil Nadu, Assam, Andhra
Pradesh and Odisha registered growth of 80%, 59%, 17%
In the Financial Year 2015-16, the Indian tractor market (the
and 16% respectively. The high growth numbers in Tamil
world’s largest by volume), declined by 10.4 % and dropped
Nadu and Assam can be attributed to low base. Uttar
to 4,93,497 units. This is the second successive year of decline,
Pradesh retained its No. 1 position in tractor sales.
resulting in industry being 22.1% below its peak of Financial
Year 2013-14. Analysing the tractor industry by horsepower segments, all the
HP segments declined, while > 50 HP segment remained flat.
The sharp decline in tractor industry can be primarily attributed
The bulk of the market which is 30 to 50 HP segments declined
to a slowdown in the Agri Sector. Two successive years of
11% for the year under review.
deficient monsoon has impacted the Agri Sector both in terms
of income and sentiments. The table below summarises the growth across various HP
segments of the tractor industry.
For the year under review, The sharp
tractor industry in most decline HP Segment Industry
states declined. The worst in tractor F15 F16 Growth
affected states being industry can be
primarily attributed to <20 24,081 22,911 -4.9%
Punjab (29%), Haryana
a slowdown in the Agri
(26%), Madhya Pradesh Sector. Two successive 20–30 35,785 30,043 -16.0%
(24%), Uttar Pradesh years of deficient 30–40 2,02,308 1,81,059 -10.5%
(21%), Chhattisgarh (16%), monsoon has impacted
Maharashtra (15%) and the Agri Sector both in 40–50 2,55,953 2,26,571 -11.5%
Gujarat (14%). These states terms of income and
sentiments. >50 32,836 32,913 0.2%
collectively accounted for
about 52% of the total Total 5,50,963 4,93,497 -10.4%

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Your Company’s Performance

Automotive Sector
During the year under review, your Company maintained its For the year under review, your Company achieved overall
position as the 3rd largest Passenger Vehicle (PV) Company, the volumes of 4,58,065 vehicles in the domestic market, a growth
2nd largest Commercial Vehicle (CV) Company and the largest of 5.4% over the previous year.
Small Commercial Vehicle Company in India. Your Company’s
share of the total Indian auto industry stood at 11.4%.

The table below summarises the performance of your Company across various Industry Segments.

Industry M&M M&M Mkt. Share

Segment
F16 Growth F16 Growth CY PY
Utility Vehicles 5,86,664 6.3% 2,22,324 7.5% 37.9% 37.5%
Cars (Participating) 4,45,597 7.9% 3,395 6.6% 0.8% 0.8%
Vans 1,77,535 3.7% 10,588 -24.1% 6.0% 8.1%
LCV Goods <2T GVW 1,16,560 -11.3% 27,834 82.5% 23.9% 11.6%
LCV Goods 2 to 3.5T GVW 1,83,414 3.5% 1,26,819 -2.3% 69.1% 73.3%
LCV Passenger 48,960 9.2% 3,778 11.3% 7.7% 7.6%
LCV Goods > 3.5T GVW 34,397 19.5% 2,647 31.1% 7.7% 7.0%
HCV Goods (>16.2T) GVW 1,69,897 35.3% 5,705 63.0% 3.4% 2.8%
3W 5,38,092 1.0% 54,975 -3.2% 10.2% 10.7%
AS (Domestic) Total 23,01,116 5.7% 4,58,065 5.4% 19.9% 20.0%

Your Company maintained its leadership position in the The XUV500 continued to grow in strength in the
domestic Utility Vehicle (UV) market with a 37.9% share. In the premium passenger vehicle segment (price range Rs. 12 to
UV2 (UV > 4,400 mm and price upto Rs. 15 lakhs) category, your Rs. 17 lakhs) with sales of over 36,000 vehicles in Financial
Company holds a share of 48.8%, while the share in UV1 (UV Year 2015-16 and a market share of 34.0% (was 13.4% in
< 4,400 mm and price upto Rs. 15 lakhs) category, the share Financial Year 2011-12).
stands at 31.5%.
In the year under review, your Company strengthened its
Bolero retained the title of India’s largest selling SUV for the UV portfolio by launching the much awaited TUV300 and
10 th consecutive year and was the 8 th largest selling PV in India. KUV100 in the UV1 (Compact UV) segment. These launches
were received well at the market and have helped the
Company drive growth and market share. For the second
half of the Financial Year
2015-16, the Company’s UV Bolero retained
volume grew by 19.7% and the title of India’s
have taken the UV market largest selling
SUV for the
share to 39.9% (was 35.5% in
10th consecutive year
second half of the Financial and was the 8th largest
Year 2014-15). selling PV in India.

Mahindra & Mahindra Limited 91

In the market segment LCV goods < 3.5T, which accounts for In the MHCV segment, your Company sold a total of 5,705
50% of total CV industry, your Company has retained the No. 1 trucks which is a growth of 63.0% over the previous year.
position. Your Company’s market share in this segment stands Improvement in product quality, service and focused market
at 51.0%. In the LCV<2T segment, your Company launched approach has helped your Company to grow truck volumes
Jeeto, which helped double the market share from 11.6% from 1,000 trucks in the first quarter of the Financial Year
in the Financial Year 2014-15 to 23.9% in the Financial Year 2015-16 to about 2,000 trucks in the fourth quarter of the
2015-16. In the PIK-UP sub-segment (LCV goods 2 to 3.5T), your Financial Year 2015-16. In February, 2016, your Company
Company launched the lifestyle PIK-UP Imperio and retained launched Blazo series of trucks which are backed by guarantee
the market leader position with a share of 69.1%. on fuel efficiency and service. The performance of the Blazo
series trucks has been appreciated by the customers.
In the LCV > 3.5T segment, your Company sold a total of
6,425 trucks and buses which is a growth of 18.7% over the
previous year. Financial Year 2015-16
was the year of new launches for your
Company. A total of 14 new products
were launched across product segments.

Product Launches and Customer Centricity

Financial Year 2015-16 was the year of new launches for your Company. A total of 14 new products were launched across product
segments (shown in the table below):
Product Segment New Platform Product Refresh Product Variant

UV 1. TUV300 7. All New XUV500 12. XUV500 AT

2. KUV100 8. New Thar CRDe
9. NuvoSport

Vans 3. Supro Minivan

LCV < 2T GVW 4. Jeeto

LCV 2 to 3.5T GVW 5. Supro Maxitruck 10. Imperio

LCV > 3.5 T GVW 13. Excelo range school bus

HCV 6. 49 T Tractor Trailer 11. Blazo Series of Trucks 14. 25T Tipper with 1S cabin

The new launches have helped your Company to strengthen its product portfolio and drive growth. The volume growth for the
second half of the Financial Year 2015-16 was 15.5% as compared to decline of 5.0% in the first half of the Financial Year 2015-16.
The table below shows your Company’s volume growth, for the two halves of the Financial Year 2015-16. Also, for the second half
of the Financial Year 2015-16, your Company posted highest growth amongst India’s top five automotive OEMs by volume.

Product Segment Growth %

H1 H2 F16
UV -5.5% 19.7% 7.5%
Vans -41.6% 7.2% -24.1%
LCV < 2T GVW 46.9% 125.5% 82.5%
LCV 2 to 3.5T GVW -9.0% 4.1% -2.3%
HCV 44.2% 77.3% 63.0%
Total Domestic -5.0% 15.5% 5.4%

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Over the past few years, your Company has worked tirelessly Your Company continued to grow its presence in the
to improve customer satisfaction at the dealership as well as at neighbouring markets of Sri Lanka, Nepal, Bangladesh and
the product level. The results of these efforts can be seen from Bhutan, where volumes grew by 29%. With continued efforts
the improvement in scores and rank received by the Mahindra of building brand in key markets like South Africa and Chile,
brand in the JD Power SSI and CSI studies. For 2015, Mahindra your Company reported a volume growth of 5% and 20%,
respectively. For the year under review, your Company supplied
was ranked No. 1 (along with Toyota) in the JD Power SSI
over 2,500 Bolero and Scorpio vehicles to Philippines Police.
study, while in the JD Power CSI studies, Mahindra was ranked
4th with a score improvement of 17 points. The graphs below Farm Sector
show the consistent improvement made by your Company in For the year under review, your Company continued its focus
the JD Power CSI and SSI scores. on delivering ‘Farm Tech Prosperity’ to the Indian farmers. Your
Company continued to develop and introduce technologically
advanced tractors, agri machinery and farm solutions.
* SSI - Mahindra
Tractor and Farm Mechanisation Business
872
The Financial Year 2015-16 saw the completion of 33 years
of M&M leadership in the domestic tractor market, with a
market share of 40.9% which was a gain of 0.9% over the
previous year.
786 For the period under review, the Company sold 2,14,173 tractors
(domestic plus export), under the Mahindra and Swaraj brands,
as against 2,34,766 tractors sold in the previous year, registering
a decline of 8.8%. This was a result of the steep decline of the
2010 2011 2012 2013 2014 2015
Indian tractor industry. Your Company performed exceptionally
well in the fourth quarter with a growth of 19%, the highest
* J. D. Power Asia Pacific 2015 India Sales Satisfaction Index
growth for fourth quarter in last 5 years.
(SSI) StudySM
In April 2016, your Company launched the Mahindra YUVO
in the 30 to 45 HP tractor segment. The YUVO range comes
** CSI - Mahindra 846
in five models – 265 DI (32HP), 275 DI (35HP), 415 DI (40HP),
475 DI (42HP) and 575 DI (45HP). Built on a completely new
platform with a unique and Industry first 12 Forward+3
Reverse Full constant-mesh gearbox in the category, Mahindra
747 YUVO is extremely versatile and can be used across more than
30 different farming applications. The advanced technology of
the Yuvo range helps to serve the diverse needs of farmers –
from land preparation to harvesting as well as post-harvesting
requirements, helps them do more, faster and better.
2010 2011 2012 2013 2014 2015

** J. D. Power 2015 India Customer Service Index (CSI) Study SM

In line with its philosophy of customer centricity, your Company
continues to expand its network that reaches out to all corners
of India.

Overseas Operations – Automotive Sector

The Automotive Sector of your Company exported a total of
36,031 vehicles during the Financial Year 2015-16, posting a
growth of 19.3% over the previous year. This is the highest
ever vehicle export by your Company.

Mahindra & Mahindra Limited 93

Global Footprint To address these challenges, your Company offers a whole range
For the year under review, your Company exported 11,545 of mechanisation solutions, micro-irrigation systems, agricultural
tractors, a decline of 16.0%. The decline can be attributed inputs and modern agronomy advisory services. In addition,
to weakness in economy of the African countries which your Company works with farmers through the entire crop cycle,
are an important export market. However, your Company to enable them to grow the best quality produce and provides
strengthened its presence in neighbouring markets of Sri them access to domestic as well as international markets.
Lanka and Bangladesh with a growth of 46%.
Farm Mechanisation
Your Company continued to strengthen its global footprint
Farm mechanisation is a key enabler to address the concerns of farm
with a focus on the key markets of USA and China, amongst
productivity and labour shortage. Your Company has presence in
other regions. Total tractor volumes outside India stood at
the mechanisation space through Mahindra AppliTrac (AppliTrac).
36,987 tractors.
Mahindra AppliTrac offers efficient and affordable mechanisation
USA solutions across the spectrum of farming operations. AppliTrac
continued to grow the market for mechanisation in the country,
Mahindra USA, a subsidiary Mahindra USA,
playing its part in boosting agricultural productivity. AppliTrac
of your Company, sold over a subsidiary of
growth was led by rotary tillers with a significant contribution
19,000 tractors, and had its your Company,
sold over 19,000 from harvesters. AppliTrac also offers a wide range of farm
highest ever billings, retails
tractors, and had its machinery including rice transplanters, sprayers, mulchers and
and gained market share
highest ever billings, balers to fulfill the needs of farm mechanisation.
of 0.7% in the relevant retails.
market segment in the North To strengthen the global footprint and bring modern
American market. Mahindra technologies in farm mechanisation into India, your Company
USA continues to expand its reach by making significant has entered into strategic partnership with Mitsubishi
efforts to strengthen the Mahindra brand in this market, and Agricultural Machinery (Japan) and Sampo Rosenlew (Finland).
connecting with the consumer through various mediums. With the introduction of new products, your Company will have
a significant presence in Rice value chain and Harvesters.
China
China, the second largest tractor market in the world, Agri Inputs
continued to face challenging times and decline for the 4th Your Company in an endeavour to deliver Farm Tech prosperity has
consecutive year. China volumes from the Mahindra Yueda been continuously upgrading its product portfolio of agricultural
Yancheng Tractor Company Limited (MYYTCL), a subsidiary of inputs to provide end to end solutions to the farmers. Through
your Company, saw a decline to 10,220 units in the domestic the wide range of crop care products of herbicides, pesticides,
market, as compared to 11,711 units sold in the same period fungicides and plant growth regulators, your Company helps to
last year. At the same time, exports from China declined 58% mitigate the risk of crop loss. Your Company offers hybrid seeds
to 849 units. for field and vegetable crops, which help the farmer obtain high
quality produce and superior yields. This business is growing
Towards Farm Tech Prosperity rapidly and is poised for a more meaningful contribution to
Agriculture in India faces multiple challenges. Key amongst Indian agriculture in the coming years. The business has grown
them being (i) Low productivity as compared to developed 10% over the previous year.
countries (ii) Increasing labour scarcity coupled with high labour
costs (iii) Limited application of modern farming techniques Micro-irrigation
(iv) Improper post-harvest supply chain infrastructure Micro irrigation (MI) can help in significantly reducing water
(v) Difficulty in accessing the markets. consumption and optimising input costs. Your Company through

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EPC Industrié Ltd. (Mahindra Group Company) provides modern Construction Equipment — Mahindra EarthMaster
scientific water management solutions to farmers through With a uptick in infrastructure spending, the Indian backhoe
customized micro irrigation systems, thus helping farmers to loader market grew by 5.5% over the previous year. For
produce more crop per drop of water. In Financial Year 2015-16, Mahindra EarthMaster, key focus has been to improve
MI business posted a strong growth of 21%. sales channel performance and build consumer preference
for EarthMaster. In Financial Year 2015-16, the business
Mahindra Samriddhi
expanded its product portfolio with the launch of lift and
Mahindra Samriddhi is a ‘one-stop-solution’ which acts as an carry crane.
umbrella interface between the organization and the farmers
by offering Mahindra branded seeds, crop care, micro irrigation
products and advisory services under one roof. Today there are OPPORTUNITIES AND THREATS
around 250 Mahindra Samriddhi touch points which delivered Automotive Sector
services to more than 1.5 lakh farmers in the Financial Year
Given the importance of the automobile industry in the
2015-16. Mahindra Samriddhi India Agri Awards, the premier
economy, its potential for employment and its backward and
event in the field of Indian
forward linkages with several sectors, the Government is keen
agriculture was graced by Today there to support its development under the Make in India initiative.
leading luminaries from the are around
Agri fraternity and honoured 250 Mahindra Going forward, the Auto Industry is expected to show
the torch bearers of farm Samriddhi touch positive growth across all segments on back of healthy
points which delivered economic outlook, finance penetration, investment in roads,
prosperity across the nation.
services to more than
Over the last six years since infrastructure and new launches by OEMs.
1.5 lakh farmers in the
its inception, it has grown in Financial Year 2015-16. Growing concerns over
stature and has attracted close Going
air pollution, road safety,
to 2 lakh nominations from farmers across the country. forward,
sustainability and urban
congestion, among consumers the Auto
Fruits and Vegetables Industry is
and society at large will have
expected to show
Your Company is actively engaged in working with grape an impact on regulations and positive growth across
farmers to help them grow international quality grapes. policies for motor vehicles all segments on back of
Further, your Company helps the farmers to achieve high price and urban development. healthy economic outlook,
realisation by connecting them to end customers in India and These will also impact finance penetration,
in international markets. Other crops of interest are banana, ownership patterns and will investment in roads,
apples and potato.
infrastructure and new
have a significant impact on
launches by OEMs.
the future of the automotive
industry.
ALLIED BUSINESSES
Mahindra Powerol Farm Sector
In the Financial Year 2015-16, Mahindra Powerol showed good Strong Government support for improvement in agriculture
growth with a revenue growth of 16.2%. productivity, rural development and greater adoption of
improved agricultural practices is expected to drive sustainable
The business is exploring further growth opportunities through
growth in the agriculture sector.
entry to higher kVA segments and through offering Energy
Management Solutions. The business is also exploring export India, with its large base of small and marginal farmers, has
opportunities to Africa and other markets. several regions with low penetration of farm mechanisation.

Mahindra & Mahindra Limited 95

With increasing labour cost and scarcity, greater adoption of all product sub-segments in Your Company is the
various forms of mechanisation is the way forward. In this Cars and UVs. market leader in the UV
scenario, the market for tractors and other farm equipment is and LCV < 3.5T commercial
With growth in economy, vehicle segments and
expected to grow in the long Strong improvement in infrastructure, continues to invest in new
term. Government product development
likely implementation of GST
support for as well as in technology
Going forward, the and strengthening of the
improvement upgrades and will
competitive intensity in the in agriculture hub and spoke transportation
continue its focus on
farm mechanisation space is productivity, rural model, the demand for delivering customer centric
expected to increase, leading development and greater commercial vehicles across products and build brand.
to new product launches and adoption of improved product categories is expected
product offerings at high value agricultural practices to get a boost. The medium
is expected to drive
points. Also, the customer and heavy commercial vehicle segment features two dominant
sustainable growth in
expectations of performance, the agriculture sector. domestic players and in the recent past, it has also witnessed new
quality and technology are entrants including MNC brands. However, the new entrants have
increasing with time. Staying ahead of competition by offering seen limited success owing to the strong on ground presence of
products with modern technology and features is likely to put current market leaders and deep rooted brand bonding.
pressure on costs.
The LCV < 3.5T commercial vehicle segment is likely to see entry
The rising demand for power and infrastructure development of MNC brands leading to increased competition in this segment.
will create opportunities in the power generation and
Your Company is the market leader in the UV and LCV < 3.5T
infrastructure equipment space. This is an opportunity for
commercial vehicle segments and continues to invest in new
the Company to grow its offerings in power solutions and
product development as well as in technological upgradation.
construction equipment.
Your Company will continue its focus on delivering customer
centric products and build brand.
RISKS AND CONCERNS
India is the world’s largest tractor market by volume and the
Automotive and Farm Sectors Tractor industry has presence of strong Domestic as well as
The Company’s business is exposed to many internal and MNC OEMs. There is intense competition in the market with
external risks and it has consequently put in place robust systems each OEM trying to offer its unique value proposition to the
and processes, along with appropriate review mechanisms to customer.
actively monitor, manage and mitigate these risks.
Your Company intends to remain ahead of the competition by
Competitive Intensity offering continuous product upgrades, introducing superior
technology and by offering a complete range of farming
Keeping in mind the high growth potential of the Indian
solutions to boost farm productivity.
automotive market, all Original Equipment Manufacturers
(OEMs) are actively investing in India specific new product
development and product technology upgrades. Today, Tax and Excise Duty Regulations
multinational OEMs are deeply entrenched in the Indian market India, has traditionally seen differential tax rate between small
with local development centres, a strong local supplier base and and large passenger vehicles. This differential is on the basis of
a good channel penetration. As a result, their cost structures definition based on length of vehicle, engine size, fuel type and
have become competitive and their response to market time has more recently, ground clearance. Also, there is an additional
improved. They are launching products developed in India at environmental and infrastructure cess levied on vehicles, again
very competitive price points. MNC OEMs are competing across differentiated between small and large vehicles. Over the past

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Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

four years the tax rate gap between small and large vehicles was launched in January, 2016 was launched with the mFalcon
has widened. This is a deterrent to the customer from buying Petrol engine.
large vehicles.
New Regulation for Safety and Emission
Beyond the above, certain large passenger vehicles of key
Concerns over safety and environment protection are
competitors have the benefit of lower tax rates through
driving legislation and regulatory reforms. The Government
the Government policies to boost demand for Hybrid and
of India is in the process of introducing the next level of
Electric vehicles.
safety and emission regulations for India. Announcement
Your Company already has presence in the Electric Vehicle (EV) has already been made that all new vehicles will need to
space through the Mahindra e2o and the recently launched meet BS VI emission norms by 2020. Conforming to the next
Verito Electric. Further, the Company is continuously working stage of regulations, both for safety and emission will call
on strengthening the portfolio of vehicles that fall under the for use of advanced technologies and will have an impact
lower tax rates. on costs. Your Company is geared up and is confident of
meeting these regulations.
Increased Preference for Petrol as a fuel
New Products
The Government of India announced policy for partial
In order to meet customer needs and be competitive at the
deregulation of diesel prices in January 2013 and complete
marketplace, your Company is investing in an aggressive
deregulation in October 2014. As a result of this, the gap
new product development and technology development
between Petrol and Diesel fuel prices has narrowed and the
programme. The success of new product launches will have
operating cost advantage that diesel vehicles had over petrol
an important bearing on your Company’s future growth and
vehicles in the past couple of years is now reduced. This has
profitability.
resulted in preference for Petrol vehicles, especially in the
passenger car and van segments. Environment and Alternate fuels
To add to above, the Hon’ble With greater awareness on air quality and the need to reduce
Your Company is
Supreme Court ruling in actively pursuing dependence on fossil fuels, there is a growing trend towards
December, 2015, of banning a strategy to adopting greener and more sustainable fuels for automobiles.
sale of Diesel vehicles with introduce Petrol Your Company has been a pioneer for Electric Vehicles in
engines larger than 2000 cc engines across the India and is focussing on development of the Electric Vehicle
product range. The (EV) market and upgrade EV technology capabilities. Your
in NCR and the discussion of
KUV100 which was
a proposal for imposing an Company’s Electric Vehicle portfolio comprises of the e2o
launched in January, 2016
additional cess on all diesel was launched with the electric car, Verito EV car and the Maxximo EV van.
vehicles has resulted into low mFalcon Petrol engine.
Subsidies through the Your Company has
consumer buying confidence
FAME (Faster Adoption and been a pioneer
for diesel vehicles across the
Manufacturing of Hybrid for Electric
country. Vehicles in
& Electric Vehicles) India
As a combination of the reduced operating benefit and the India and is
scheme, should give the
focussing on development
low consumer confidence on Diesel fuelled vehicles, the share necessary push to make EV of the Electric Vehicle (EV)
of Diesel vehicle sales in total passenger vehicles has dropped technology more affordable. market and upgrade EV
from 58% in the Financial Year 2012-13 to 44% in the Financial technology capabilities.
Year 2015-16. Monsoon
Your Company is actively pursuing a strategy to introduce A normal monsoon is important for both agriculture as
Petrol engines across the product range. The KUV100 which well as the rural economy. The tractor business in particular

Mahindra & Mahindra Limited 97

and the automotive business to some degree, run the Financial Year 2019-20 to be as large as around 5.7 million vehicles
risk of a drop in demand in case of a significant variation (current size 3.2 million). This is a growth rate of 12% CAGR.
in the monsoon. In addition, an untimely monsoon
In the Financial Year 2016-17, automotive industry growth is
and uneven spread have the potential of adversely
likely to be driven by economic growth, increased investment
impacting the business as observed in the Financial Year
in infrastructure, a normal monsoon driving positive sentiment
2014-15 and Financial Year 2015-16.
in rural economy, and an overall improvement in consumer
confidence.
Commodity Prices
For the period 2015-16, commodity prices remained benign. The cost of ownership of vehicle may see marginal increase due
However going forward, keeping the possibility of the to an increase in fuel prices and the movement in commodity
commodity prices firming up, your Company continues to prices reflecting in an increase in price. The interest rates
watch the market situation closely and continues to focus on may soften marginally from
current levels. The mid-term
cost re-engineering and value engineering to remain cost
outlook for the
competitive. For the Financial Year 2016- Indian auto
17, SIAM forecasts a double industry is very
Capacity positive. Society of Indian
digit growth for the Indian
The Company has built The Company Automobile Manufacturers
Auto Industry. PV is expected
adequate manufacturing has built (SIAM) forecasts the
to grow at 11-13%, LCV goods potential size of the
adequate
capacity for the immediate at 12-14%, MHCV Goods at
manufacturing Indian vehicle market
future and is planning to 12-14%, 3W at 6-8% and 2W (PV + CV) by the Financial
capacity for the
invest in additional capacity immediate future and at 7-9%. Year 2019-20 to be as
in preparation for the mid to is planning to invest in large as around 5.7 million
additional capacity in On the export front, vehicles (current size 3.2
long term.
preparation for the mid to new product launches, million). This is a growth
On the supplier end, the long term. complimented by brand rate of 12% CAGR.
Company is working closely building efforts will help drive
with its key suppliers to minimise any supply constraints growth. This growth is expected to be aided by the industry
through capacity planning and longer term contracts. At the turning positive in key markets.
same time, opportunities for global sourcing are also being
On the tractor front, the industry growth is expected to be
actively pursued.
driven by a normal monsoon which will revive the sentiments
in the Indian Agri sector. However, the impact of this is likely to
OUTLOOK – AUTOMOTIVE & FARM SECTORS come only in later part of the Financial Year 2016-17.

Both the Automotive and Farm Sectors strive to maintain On the international front, your Company will focus on
their leadership position in the domestic market and at the strengthening its presence in existing markets of USA, South
same time explore global opportunities. Simultaneously, your & Central America, China, Africa and South East Asia, while
Company continues its focus on achieving cost leadership exploring to expand to newer geographies.
through focused cost optimisation, productivity improvements,
value engineering, supply chain management and exploiting
synergies between its Sectors. STRATEGY
The mid-term outlook for the Indian auto industry is very positive. Automotive Sector
Society of Indian Automobile Manufacturers (SIAM) forecasts With an objective to sustain growth, your Company is pursuing
the potential size of the Indian vehicle market (PV + CV) by the several strategic initiatives in all key areas of business. The

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key elements of strategy include strengthening the product stakeholders (starting with The Group’s
portfolio, refresh and update existing products and strengthen customers and employees) and Human
Research & Development and technological capabilities. In strengthening the core values Resources
Philosophy
addition, your Company is pursuing expansion in overseas of the Group. In the long run,
is guided by
markets. Establishing the channel and building the brand in the ultimate metric for success
the three Rise Pillars
key focus markets remain the priorities for your Company. is continuous improvement in of Accepting No Limits,
With increasing concerns over global warming and the need the total factor productivity, Alternative Thinking
for sustainable mobility, your Company continues to focus while addressing the business and Driving Positive
and invest in development of alternate fuel technologies and imperatives of cash, cost, Change, and the Group’s
competence and confidence. aspiration of being
solutions especially electric vehicles.
among the top 50 most
The emphasis has been on
admired global brands by
Farm Sector aligning all the HR levers 2021, by enabling people
towards achieving these goals. everywhere to Rise.
The Farm Sector’s strategy is aligned to delivering Farm Tech
In line with the above, the
Prosperity to the farmers. In its endeavour to grow and
Group’s Human Resources Philosophy is guided by the three
serve farmers better, the Company will continue to launch
Rise Pillars of Accepting No Limits, Alternative Thinking and
technologically superior tractors and farm machinery. Going
Driving Positive Change, and the Group’s aspiration of being
forward, farm mechanisation is a focus area for your Company.
among the top 50 most admired global brands by 2021, by
Keeping this in mind, your Company has entered into strategic
enabling people everywhere to Rise. Your Company aims to
partnerships with Mitsubishi Agricultural Machinery (Japan) and
support this aspiration by creating Mahindra Leaders who
Sampo Rosenlew (Finland).
will lead Tomorrow’s Company by focusing on a culture of
On 1st October, 2015, your The Farm outperformance, collaboration and partnership built on
Company completed the Sector’s strategy cutting-edge practices in Talent Management and Leadership
transaction with Mitsubishi is aligned to Development. In order to ensure internalisation of this culture,
Agricultural Machinery. delivering Farm the Mahindra Leadership Competency Framework has been
Starting from October, 2015,
Tech Prosperity to
integrated with the HR levers of Recruitment, Performance
the farmers.
the name of the company has Management System, Talent Management, Reward &
been changed to ‘Mitsubishi Recognition and Leadership Development.
Mahindra Agricultural Machinery Co., Ltd.’. With these
developments, Mitsubishi Mahindra Agricultural Machinery is in In this overall architecture, a key strategic initiative that needs
a position to execute business strategies for global expansion, mentioning is Employer Branding, coupled with the Employee
along with a continued focus in the market in Japan. Value Proposition of delivering a uniform One Mahindra
experience to all employees. The template for creating
In March 2016, your Company signed a definitive agreement to Tomorrow’s Leaders and harnessing the power of diversity
acquire a 35% equity stake in Finland based Sampo Rosenlew. (across its many dimensions including gender, age, nationality
This new alliance will help both companies to jointly develop and culture) is also being put in place. Driving diversity in
products to address global opportunities in the harvester space. various lines of business and creating an inclusive workforce
was identified as a key focus area in the Financial Year
MATERIAL DEVELOPMENTS IN HUMAN 2015-16 and accordingly the Group Diversity Council identified
RESOURCES AND EMPLOYEE RELATIONS its key priorities for the year. Based on the recommendations of
The strategic purpose of Human Resources is to be a catalyst and the Group Diversity Council, the Sector Level Councils created
change agent for creating the Human Capital transformation roadmaps which would help them determine their strategy and
required to ensure sustained business outperformance, measure progress in managing diversity and fostering inclusion.
while simultaneously addressing the needs of its multiple A major initiative was the organization-wide awareness

Mahindra & Mahindra Limited 99

and sensitisation program Mahindra World have been designed in-house and administered. Based on
on Diversity and Inclusion of Women the findings of the survey, various strategic interventions are
which would help harness (MWoW) which rolled out and impact of these interventions is measured. The
is a platform for
the productive potential constructs are periodically revalidated and benchmarked with
peer learning to
of the multiple aspects of solve work life challenges other constructs.
Diversity. Prevention of Sexual and derive inspiration The Rise internalisation programs not only cover Officers
Harassment at Workplace from role models
but also Workmen on the shop-floor, with whole-hearted
related awareness and internally and externally,
was launched successfully participation by the latter in each manufacturing plant. Rise
training of Internal Complaints Awards were institutionalised for workmen across the Group,
in major locations.
Committee (ICC) members through competitions at the Plant, Sector and Group Level. To
through classroom program ensure that industrial relations is treated as a critical business
and e-learning courses was also done. Mahindra World of process, the process of including it for assessment in The
Women (MWoW) which is a platform for peer learning to solve Mahindra Way model has started and several plants have been
work life challenges and derive inspiration from role models included in the next assessment cycle.
internally and externally, was launched successfully in major
HR processes that have been re-engineered to drive the Rise
locations.
culture are working well. An in-house Multi-rater feedback
Focus continued on the Talent Management and Leadership instrument has been designed to provide feedback to senior
Development processes which included Development Centres, leadership on the behaviours manifested under the 3 Rise pillars
Individual Development Planning, e-learning, up-skilling viz. Accepting No Limits, Alternative Thinking and Driving
programs, Leadership Lifecycle programs and Action-Learning Positive Change and the
Projects. The Talent Management process is powered by a 5 Leadership characteristics
The
network of Sector Councils, with the Apex Talent Council viz. Mindfulness, Manage fear
Mahindra
playing a pivotal role in Succession Planning, Career Planning, and Leveraging failure, Whole Leadership
Job Rotation, Hi-potential Identification and the talent pipeline Brain Thinking, Multiplier and University
development process. A robust Talent Scorecard process seeks Trust. The manifestation of (MLU), supports the
to ensure succession planning and leadership development the 3 pillars of Rise coupled process of building
capacity and capability in
for both the immediate as well as the longer term, while the with the 5 characteristics of a
the leadership pipeline
Performance Management System helps in the integration of the Mahindra leader will go a long
by leveraging a common
Balanced Score Card with business and individual goals through way in building admiration for virtual platform which
the annual goal setting process. This rigour in implementation the employer brand. delivers Learning and
has helped to create a shared understanding and to focus the Development across the
A formal Leadership
efforts of employees in building a culture of outperformance. Group.
Development process has
All the above processes of Talent Management, Learning been put in place with a
Management System and Performance Management system three-tier approach which addresses entry, middle and senior
have been digitised with the help of Success Factors and Sum management levels. The Mahindra Leadership University (MLU),
Total. In order to ensure that supports the process of building capacity and capability in the
the pulse of the workforce The Mahindra leadership pipeline by leveraging a common virtual platform
is captured, customised Way model has which delivers Learning and Development across the Group.
engagement constructs viz. started and MLU uses the 3E approach (Experience, Exposure and Education)
a) MCARES for officers; and several plants
towards capability building and this has been integrated in
have been included in the
b) Workmen engagement all the programs. Experience is delivered by providing people
next assessment cycle.
construct for Workmen, with meaningful roles/projects, Exposure takes place through

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coaching and mentoring by leaders, and Education by building consisting of Dr. Pawan This year
mental acumen through development programs and classroom Goenka, Mr. Rajeev Dubey and Mahindra &
training. Mr. Rakesh Soni, have Mahindra Limited
emerged as
committed to provide strategic
Working through its the winner
direction and support to the in the “Engineering &
9 Academies, MLU Tie-ups with
the Harvard internal design team. Automotive Sector”
conceptualised, designed
Business category at the annual
and delivered more than 343 A cohort of 34 participants is
School (HBS), Business Today’s Best
offerings during the past one there in the inaugural Batch Companies to Work for
the Wharton
year using the framework of School of Management, of FLP, which is scheduled to Awards 2016.
a ‘Laddered Approach’ for the Ross School of be launched on 21st July, 2016.
the design and roll out of Management – Michigan, The participants will not only experience intensive classroom
programs. This framework the Centre for Creative modules across the globe at Switzerland, India and USA, but
recognizes and addresses Leadership (CCL) – USA, also make several discovery visits to leading global companies
the Indian Institutes of
the need for varying inputs and interact with global leaders in these organisations.
Management and other
tailored to the different leading management Participants will also be engaged in project teams to address
levels of leadership in the institutions in the country a Leadership Stretch Challenge (LSC) which can potentially
Mahindra system. A total have helped enrich the shape the future of the Group. In addition, they will have
coverage of 6,524 people was Company’s leadership access to leadership coaches, and executive mentors, who they
achieved during the year for offerings. The Company can leverage to make their learning journey as personal and as
has also initiated
the programs rolled out by all effective as possible. At the end of the program, participants
collaboration with the
9 academies which included Singapore Management will also be the alumni of these prestigious institutions – IMD,
1,395 employees of the University (SMU) and the Lausanne and Yale School of Management.
Company’s suppliers. Yonsei Business School in
The journey of Reflective Conversations continues with the aim
Korea.
Tie-ups with the Harvard to make Mahindra a Reflective Organization thereby enabling
Business School (HBS), the Company to grow towards the Group’s aspiration. The
the Wharton School of Management, the Ross School of proliferation, which began with Mr. Anand Mahindra and the
Management – Michigan, the Centre for Creative Leadership Group Executive Board in July, 2013, has cascaded down to
(CCL) – USA, the Indian Institutes of Management and other Department Heads and a few Managers, now covering around
leading management institutions in the country have helped 1,000 people across multiple Businesses of the Group. To ensure
enrich the Company’s leadership offerings. The Company has cultural transformation and sustenance, the ecosystem for the
also initiated collaboration with the Singapore Management practice of Reflective Conversations is being strengthened
University (SMU) and the Yonsei Business School in Korea. with more focus on building an internal trainer pool, focused
reinforcement, role-modeling by leaders and partnership
The Company is designing and rolling-out the Future Leaders
with stakeholders across Sectors to fully harness the power
Program (FLP), a strategic Leadership development and
of Reflective Conversations in HR and Business levers for
Talent management journey for the Group. FLP is being
higher engagement, better connect with stakeholders and
designed and implemented as an 18 month journey through
breakthrough Innovation.
a 3-way collaboration between IMD, Lausanne, Yale School
of Management and Mahindra Leadership University. FLP is This year Mahindra & Mahindra Limited emerged as the
the ultimate program in the Company’s laddered approach winner in the “Engineering & Automotive Sector” category
to leadership development and would go a long way in at the annual Business Today’s Best Companies to Work for
strengthening the Company’s leadership pipeline. In order Awards 2016. The web based perception survey, organized in
to facilitate the design and implementation of FLP, a Troika partnership with People Strong and Naukri.com was open to all

Mahindra & Mahindra Limited 101

salaried employees across India wherein they ranked top five extended across two foreign campuses from China and Korea,
companies, across Sectors based on their opinion on the best and finalists from these campuses presented along with the
companies to work for. The final ranking was given out based Indian finalists at the Grand Finale of the Event.
on people practices and culture along the dimensions of career The Transformational Work
growth prospects, financial compensation, work-life balance, Culture initiative which
performance evaluation, etc. This achievement and recognition aims to create an engaged The Mahindra
was mirrored by the rank given out by Great Places to Work workforce and an innovative, War Room,
which is a
earlier in the year, wherein the Company was adjudged the productive and competitive
pioneer in its
25th best place to work in India, followed by 24th best place shop-floor ecosystem,
field, continues to retain
to work in Asia in large organizations category. The leap that continues to grow in strength. its position as the largest
the Company has made year on year in the Great Workplaces The Transformational Work and the most recalled
Culture Committee (TWCC) Employer Branding Events
rankings, from 38 in 2013 to 28 in 2014 and finally to 25 in
continually engages with in the top B-Schools of
2015, has only affirmed the belief that external recognition
long-term strategic initiatives India (as was evident
and strength of the employer brand in the external audiences
which range from anticipated from the Nielsen Campus
is built through working consistently towards providing Track Survey, 2015).
Labour Law reforms to
employees great day to day experience at the workplace. ‘Swachh Bharat Abhiyaan’,
The Group Management Cadre (GMC) Program, which is the Rise for Associates, Industrial
Group’s prestigious strategic leadership development program Relations Skills for Frontline Officers, Cultural Diagnostics
for campus recruits sourced from top B-Schools of India, Projects, e-Compliance, Code of Conduct for Associates, and
continues to strengthen Mahindra’s position as an ’Employer cutting edge ER Practices under MLU.
of Choice’ across premier B-School campuses, and create a The Industrial Relations scenario continued to be largely positive
strong talent pool to drive Mahindra’s future growth. As per across all Mahindra Automotive Manufacturing locations
Nielsen’s B-school Campus Track Survey of 2015, the Company and during the year there have been no wage settlements.
was ranked 11th in the list of India’s top twenty business Settlements for bonus have been a win-win and the Company
schools from where the Company recruits, thus affirming the continues to maintain a harmonious and collaborative work
Company’s position amongst the most sought after employers environment.
at India’s premier business schools. Through this program,
35 GMCs joined the Group across its various sectors and In order to foster togetherness at the workplace skills, training
functions. and engagement programs were rolled out. These training
programs covered a wide range of topics, including Positive
The Mahindra War Room, which is a pioneer in its field, Attitude, Stress Management, Creativity, Team Effectiveness,
continues to retain its position as the largest and the most Safety and Environment, Quality Tools, TPM, Dexterity, Skill
recalled Employer Branding Events in the top B-Schools of India Building Programs and Technical Training.
(as was evident from the Nielsen Campus Track Survey, 2015).
The 8th Edition of the Event was rolled out between September The Mahindra Skill Excellence Initiative is a holistic approach to
and November, 2015, whereby Mahindra reached out to the enhance the skill and capabilities of shop-floor employees and
brightest young minds across the top B-Schools on the country the participation from associates across manufacturing facilities
to provide them with an experiential dimension to learning, has increased from 1,800 of last year to 2,300 in this year. The
thus enabling them to creatively present their solutions for Initiative brought laurels to the Company and the Nation by
real business issues directly to the respective business heads. registering 7th rank at World Skill Competition held at Brazil in
The Grand Finale of the event happened at Grand Hyatt on August, 2015. Ideas were generated to resolve quality concerns,
8th November, 2015 in the presence of the Group Executive reduce cost, ensure safety and improve productivity. For the
Board Members (including Mr. Anand G. Mahindra), who year under review, the shop floor associates generated about
were also the jury for the event . The highlight of the event 17.5 ideas per person resulting into a whopping cost saving of
this year was the fact that for the first time, the event was Rs. 26 crores cumulative for the last 2 years.

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Mahindra & Mahindra Limited had a total of 20,122 employees DISCUSSION ON FINANCIAL PERFORMANCE
on its rolls as on 31st March, 2016. Significant emphasis WITH RESPECT TO OPERATIONAL
has also been put on creating awareness about health and PERFORMANCE
wellness of employees through annual medical check-ups,
Overview
medical software, health awareness activities, introduction of
diet food, etc. The financial statements of the Company have been prepared in
accordance with the generally accepted accounting principles in
Proactive and employee-centric shop floor practices, a focus on
India (Indian GAAP) and comply with the Accounting Standards
transparent communication of business goals through monthly
(“AS”) specified under section 133 of the Companies Act, 2013.
Plant Head communication, an effective concern resolution
mechanism, and the firm belief The Mahindra The Group’s consolidated financial statements have been
that employees are the most Skill Excellence prepared in compliance with the standard AS 21 on Consolidation
valuable assets of the Company, Initiative brought of Accounts and presented in a separate section.
are the cornerstone of the laurels to the Company
Company’s employee relations and the Nation by
approach. An ‘open door policy’ registering 7th rank at FINANCIAL INFORMATION [STANDALONE]
and constant dialogue to create World Skill Competition
win-win situations, have helped held at Brazil in Fixed Assets
the Company to build trust and August, 2015. As at 31st March, 2016, the Fixed Assets stood at Rs. 9518
harmony. All this resulted in zero crores as compared to Rs. 8,108 crores as at 31st March, 2015.
production loss in the Financial Year 2015-16 and helped create During the year, the Company incurred capital expenditure of
a peaceful, healthy and collaborative work environment.
Rs. 2,172 crores (previous year Rs. 2,035 crores). The major items
of capital expenditure were on new product development and
Internal Control Systems capacity enhancement.
Your Company maintains adequate internal control
systems commensurate with the nature of its business and Borrowings:
size and complexity of its operations. These are regularly
tested for their effectiveness by Statutory as well as Internal (Rs. in Crores)
Auditors. Further, the internal control systems have been
Financial Financial
designed to provide reasonable assurance with regard to
Year Year
recording and providing reliable financial and operational
2015-16 2014-15 Inc./(Dec.)
information. In the highly networked IT environment of
the Company, validation of IT Security receives focused Long Term
attention from IT specialists and Statutory Auditors. Your Borrowings 1,495 2,514 (1,019)
Company has a strong and independent internal audit Short Term
function consisting of professionally qualified accountants Borrowings 348 106 242
and engineers. The Chief Internal Auditor reports directly
Current
to the Chairman of the Board. Significant observations
made by the internal audit team and the follow up actions Maturities of
thereon are reported to the Audit Committee. The Audit Long Term
Committee reviews the adequacy and effectiveness of the Borrowings 1,073 1,108 (35)
Company’s internal control environment and monitors Unclaimed
the implementation of audit recommendations. During the Matured
year, the Company has taken steps to review and document
deposits 1 1 –
the adequacy and operating effectiveness of internal
controls. Total 2,917 3,729 (812)

Mahindra & Mahindra Limited 103

Borrowings (including current maturities of long term debt and The increase in raw materials and bought out components
unclaimed matured deposits) have decreased from Rs. 3,729 as a percentage of cost of materials consumed and increase
crores in the previous year to Rs. 2,917 crores in the current in finished goods and stock-in-trade as a percentage of
year. The decrease is primarily on account of repayment of sales of products has been mainly on account of new
loans during the current year. product launches and inventory built-up on expected better
upcoming seasons.
Inventories
Trade Receivable
March 31, 2016 March 31, 2015
Trade Receivable is Rs. 2,512 crores as at March 31, 2016, as
Raw materials and compared with Rs. 2,558 crores as at March 31, 2015. Also,
bought out components as a percentage of gross revenue from sales of products and
as a % of cost of
materials consumed 3.8% 3.7% services, trade receivable is lower at 5.8% for the year ended
March 31, 2016, as compared to 6.4% for the previous year
Finished goods and on account of significant improvements in credit management
Stock-in-trade as a % of
process across divisions supplemented by better collection
sales of products 3.9% 3.5%
efforts.

RESULTS OF OPERATIONS
Income
(Rs. Crores)

Particulars Financial Year 2015-16 Financial Year 2014-15 Inc./(Dec.)

Amount % Amount % %
Sales of Products 42,764 104.6 39,737 103.4 7.6

Sale of Services 354 0.9 342 0.9 3.5

Other Operating revenue 488 1.2 553 1.4 (11.8)

Gross Sales & Income from Operations 43,606 106.7 40,632 105.7 7.3

Less : Excise Duty on Sales 2,722 6.7 2,188 5.7 24.4

Net Sales & Income from Operations 40,884 100.0 38,444 100.0 6.3

Other Income 855 2.1 849 2.2 0.7

Net Sales, Income from Operations & Other Income

The net sales and income from operations of the Company increased by 6.3% as compared to the previous year. The increase is
mainly on account of new product launches in automotive and tractor business aided by significant increase in the revenue of other
businesses mainly Powerol and Agri.

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Other income during the Financial Year 2015-16 at Rs. 855 crores is marginally higher than Rs. 849 crores earned in the previous year.

Particulars Financial Year 2015-16 Financial Year 2014-15 Inc./(Dec.)

Amount % to Net Sales Amount % to Net Sales %

& Income from & Income from
(Rs. crores) (Rs. crores)
Operations Operations

Material Costs 29,566 72.3 27,955 72.7 5.8

Employee Benefits Expense 2,342 5.7 2,317 6.0 1.1

Finance Costs 155 0.4 214 0.6 (27.5)

Depreciation and Amortisation

Expense 1,109 2.7 975 2.5 13.7

Other expenses 4,406 10.8 3,999 10.4 10.2

Total Expenses 37,578 91.9 35,460 92.2 6.0

Expenditure and the impact in the current year on account of capitalisation

The total expenditure during the year as a percentage of net of assets during the year mainly for new product launches and
sales/Income from Operations is 91.9% as compared to 92.2 % capacity enhancements.
in the previous year.
Finance Costs
Material Cost The interest expense for the year ended is lower mainly due to
The decrease in material cost as a percentage of sales is mainly repayment of loans.
due to benign commodity prices, better mix and continued
cost reduction initiatives undertaken by the Company. Exceptional Items
Personnel Cost Exceptional items in the current year is on account of profit
(net) earned on sale of certain long term investments. In
During the year, there has been marginal increase in personnel
the previous year, it was on account of profit earned on
cost. The increase in personnel cost due to annual increments
sale of certain long term investments and also due to the
has been partly offset by gains on actuarial valuations as per
excess of fair value of Tech Mahindra Limited (TML) shares
AS 15 “Employee Benefits”.
received over cost of investment in Mahindra Engineering
Other Expenses Services Limited (MESL), on account of the merger of MESL
with TML.
Other expenses as a percentage of net sales and operating
income shows an increase over the previous year. The expenses
have increased mainly on account of advertisement and sales Provision for taxation
promotion expenses incurred to support and enhance sales in The provision for current tax and deferred tax for the year
a challenging market. ended March 31, 2016 as a percentage to profit before tax
is higher than the previous year mainly due to reduction in
Depreciation and Amortisation tax benefits under section 80 IC (Haridwar plant tax holiday
The increase in depreciation and amortisation is mainly due to expired), reduction in accelerated deduction of R&D expenses
full impact of capitalisation of assets during the previous year and increase in statutory tax rates.

Mahindra & Mahindra Limited 105

Consolidated Financial Position of the M&M Group operating income of Rs. 1,599 crores as compared to Rs. 812
As on 31st March, 2016 the Group for the purpose of crores in the previous year. The consolidated profit after tax
consolidation comprised of the flagship holding company for the year is Rs. 99 crores as compared to Rs. 81 crores in the
Mahindra & Mahindra Limited, 154 Subsidiaries, 8 Joint previous year, an increase of 22%.
Ventures and 16 Associates. Ssyangyong Motor Company (SYMC), the Korean subsidiary of
the Company has reported consolidated revenues of Rs. 19,647
The Gross Revenue and Other Income for the year ended
crores in the current fiscal year as compared to Rs. 18,466
31st March, 2016 of the Consolidated Mahindra Group is
crores in the previous year, a growth of 6%. The consolidated
Rs. 83,207 crores as against Rs. 75,514 crores for the previous
loss after tax for the year is Rs. 177 crores as compared to
year. The Group’s net revenue and other income is Rs. 78,557
Rs. 715 crores in the previous year.
crores in the current year as compared to Rs. 71,973 crores in the
previous year. The profit before exceptional items and tax for the Segment Results (before exceptional item)
current year is Rs. 4,234 crores as compared to Rs. 4,038 crores
The results achieved by major business segments of the Group
in the previous year. The consolidated Group Profit for the year
are given below:
after exceptional items and tax and after deducting minority
(Rs. Crores)
interest is Rs. 3,211 crores as compared to Rs. 3,137 crores in the
Segments F-2016 F-2015
previous year.
1. Automotive 2,197 1,321
Tech Mahindra Limited (TML), the Company’s flagship company 2. Farm Equipment 1,928 1,968
in the IT Sector, has reported a consolidated revenue of
3. Financial Services 1,224 1,394
Rs. 26,494 crores in the current year as compared to Rs. 22,621
4. Steel Trading & Processing 106 106
crores in the previous year, an increase of 17%. Its consolidated
5. Infrastructure 171 448
PAT is Rs. 3,118 crores as compared to Rs. 2,628 crores in the
6. Hospitality 199 92
previous year, an increase of 19%.
7. IT Services 66 46
The Group’s finance company, Mahindra & Mahindra Financial
8. Systech (134) (116)
Services Limited (Mahindra Finance), reported a consolidated
9. Two Wheelers (759) (555)
operating income of Rs. 6,554 crores during the current
10. Others (122) (63)
year as compared to Rs. 6,021 crores in the previous year, a
11. Eliminations (48) (24)
growth of 9%. The consolidated profit after tax for the year
is Rs. 772 crores as compared to Rs. 913 crores in the previous Total 4,828 4,617
year. Mahindra Finance customer base has crossed 4.1 million
Disclaimer
customers. The Company currently has a network of 1,167 offices
and Total Assets under Management of Rs. 40,933 crores as on Certain statements in the Management Discussion and
31st March, 2016 as against Rs. 36,878 crores as on 31st March, Analysis describing the Company’s objectives, projections,
2015, a growth of 11%. estimates, expectations or predictions may be “forward-
looking statements” within the meaning of applicable
Mahindra Lifespace Developers Limited (MLDL), the Group’s securities laws and regulations. Actual results could differ
subsidiary in the business of real estate and infrastructure from those expressed or implied. Important factors that could
registered a consolidated operating income of Rs. 826 crores make a difference to the Company’s operations include raw
as compared to Rs. 1,086 crores in the previous year. The material availability and prices, cyclical demand and pricing
consolidated profit after tax for the year is Rs. 93 crores as in the Company’s principal markets, changes in Government
compared to Rs. 266 crores in the previous year. regulations, tax regimes, economic developments within India
Mahindra Holidays & Resorts India Limited, the Group’s and the countries in which the Company conducts business and
subsidiary in the business of timeshare registered a consolidated other incidental factors.

106 Annual Report 2015-16

Corporate
Governance
Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Corporate Governance

COMPANY’S PHILOSOPHY ON CORPORATE 31st March, 2016 are highly renowned professionals drawn
GOVERNANCE from diverse fields, possess the requisite qualifications
and experience in general corporate management,
Your Company has been following fair, transparent and
finance, banking, insurance, economics and other allied
ethical governance practices. The governance processes and
fields which enable them to contribute effectively to your
practices embedded into the culture of the Organisation
Company and enhance the quality of Board’s decision
ensure that the interest of all the stakeholders are taken
making process.
into account in a balanced and transparent manner.
Your Company believes that good Corporate Governance The maximum tenure of Independent Directors is in compliance
emerges from the application of best management practices with the Companies Act, 2013 (“the Act”). All the Independent
and compliance with the laws coupled with the highest Directors have confirmed that they meet the criteria as
standards of integrity, transparency, accountability and mentioned in Regulation 16(1)(b) of the Listing Regulations
business ethics. and section 149(6) of the Act.
Your Company also believes that sound Corporate Governance As mentioned in the previous Annual Report, Mr. Bharat
is critical to enhance and retain investor trust. Your Company Doshi, Non-Executive Director had conveyed his desire to
continues to strengthen its governance principles to generate relinquish his position as a Director of your Company and
long term value for its stakeholders on sustainable basis thus accordingly ceased to be a Director with effect from the
ensuring ethical and responsible leadership both at the Board conclusion of the 69th Annual General Meeting ("AGM") held on
and at the Management levels. 7th August, 2015.
A Report on compliance with the Corporate Governance Apart from reimbursement of expenses incurred in the
provisions as prescribed under the Securities and Exchange discharge of their duties, the remuneration that these
Board of India (Listing Obligations and Disclosure Directors were entitled to under the Act as Non-Executive
Requirements) Regulations, 2015 (“Listing Regulations”) is Directors and the remuneration that a Director may receive
given below. for professional services rendered to the Company through a
firm in which he is a partner, none of these Directors have
I. BOARD OF DIRECTORS any other pecuniary relationships with your Company, its
Subsidiaries or Associates, or their Promoters, or Directors,
The composition of the Board of your Company is in
during the two immediately preceding financial years or
conformity with Regulation 17 of the Listing Regulations.
during the current financial year. None of the Directors of your
The Chairman & Managing Director of your Company,
Company are inter-se related to each other.
though a Professional Director in his individual capacity,
is a Promoter and the number of Non-Executive and Professional fees for the year under review to Khaitan
Independent Directors is more than one-half of the & Co., Advocates & Solicitors, in which Mr. R. K. Kulkarni,
total number of Directors. Non-Executive and Independent Director is a partner, amounted
to Rs. 124.20 lakhs (including out of pocket expenses).
Mr. Anand G. Mahindra, Chairman & Managing Director and
Dr. Pawan Goenka, Executive Director & Group President The Senior Management of your Company have made
(Auto and Farm Sector) are the Whole-time Directors of disclosures to the Board confirming that there are no material
your Company. The remaining Non-Executive Directors, financial and commercial transactions between them and the
comprising of seven Independent Directors including a Company which could have potential conflict of interest with
Woman Director, and one Non-Independent Director as on the Company at large.

Mahindra & Mahindra Limited 109

A. Composition of the Board
The Board of your Company comprises of ten Directors as on 31st March, 2016. The names and categories of Directors, the number
of Directorships and Committee positions held by them in the companies are given below. None of the Director is a Director in more
than 10 public limited companies (as specified in section 165 of the Act) or acts as an Independent Director in more than 7 listed
companies or 3 listed companies in case he/she serves as a Whole-time Director in any listed company (as specified in Regulation
25 of the Listing Regulations). Further, none of the Directors on the Board is a Member of more than 10 Committees and Chairman
of more than 5 Committees (as specified in Regulation 26 of the Listing Regulations), across all the Indian public limited companies
in which he/she is a Director.

Total Number of Directorships, Committee

Chairmanships and Memberships
Directors' of public limited companies*,
Directors Category Identification as on 31st March, 2016
Number
Directorships$ Committee Committee
Chairmanships+ Memberships+

NON-EXECUTIVE

Mr. Deepak S. Parekh Independent 00009078 9 2 4

Mr. Nadir B. Godrej Independent 00066195 10 1 2

Mr. M. M. Murugappan Independent 00170478 9 4 4

Mr. Bharat Doshi@ Non-Independent 00012541 – – –

Mr. R. K. Kulkarni Independent 00059367 7 3 5

Mr. Anupam Puri Independent 00209113 4 – 2

Dr. Vishakha N. Desai Independent 05292671 1 – 1

Mr. Vikram Singh Mehta Independent 00041197 7 – 1

Mr. S. B. Mainak (Nominee of LIC) Non-Independent 02531129 3 – –

EXECUTIVE

Mr. Anand G. Mahindra Promoter 00004695 6 – 1

– Chairman & Managing Director

Dr. Pawan Goenka – Executive Director 00254502 8 – 1

Executive Director & Group
President (Auto and Farm Sector)

* Excludes private limited companies, foreign companies and companies registered under section 8 of the Act and Government Bodies.
$ Includes Additional Directorships and Directorship in your Company.
+ Committees considered are Audit Committee and Stakeholders Relationship Committee, including that of your Company. Committee
Membership(s) and Chairmanship(s) are counted separately.
@ Ceased to be a Director with effect from the conclusion of the 69 th AGM held on 7th August, 2015.

110 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

B. Board Procedure The Board sets annual performance objectives, oversees the
actions and results of the management, evaluates its own
A detailed Agenda, setting out the business to be transacted
performance, performance of its Committees and individual
at the Meeting(s), supported by detailed notes is sent
Directors on an annual basis and monitors the effectiveness
to each Director at least seven days before the date of
of the Company’s governance practices for enhancing the
the Board Meeting(s) and of the Committee Meeting(s).
stakeholders’ value.
To provide web-based solution, a soft copy of the said
Agenda(s) is also uploaded on the Board Portal which Apart from Board members and the Company Secretary, the
acts as a document repository. The Directors are also Board and Committee Meetings are generally also attended
provided the facility of video conferencing to enable by the Chief Financial Officer and wherever required the
them to participate effectively in the Meeting(s), as and Heads of various corporate functions.
when required.
C. Number of Board Meetings, Attendance of the
To enable the Board to discharge its responsibilities effectively
Directors at Meetings of the Board and at the
and take informed decisions, the Chairman & Managing Annual General Meeting
Director apprises the Board at every Meeting of the overall
During the year 1st April, 2015 to 31st March, 2016, six Board
performance of your Company, followed by a Presentation
Meetings were held on the following dates – 29th May, 2015,
by the Executive Director & Group President (Auto and Farm
7th August, 2015, 6th November, 2015, 21st December, 2015,
Sector). A detailed functional Report is also presented at the
12th February, 2016 and 29th March, 2016. The Board met at
Board Meeting(s).
least once in every Calendar Quarter and the gap between two
The Board also, inter alia, periodically reviews strategy and Meetings did not exceed one hundred and twenty days. These
business plans, annual operating and capital expenditure Meetings were well attended. The 69th AGM of your Company
budget(s), investment and exposure limit(s), compliance was held on 7th August, 2015.
report(s) of all laws applicable to your Company, as well as The attendance of the Directors at these Meetings was as under:
steps taken by your Company to rectify instances of non-
compliances, review of major legal issues, minutes of the Directors Number of Attendance
Board Meetings at the AGM
Committees of the Board and of Board Meetings of your
attended
Company’s subsidiary companies, significant transactions
Mr. Anand G. Mahindra 5# Yes
and arrangements entered into by the unlisted subsidiary
Dr. Pawan Goenka 5 #
Yes
companies, approval of quarterly/half-yearly/annual results,
significant labour problems and their proposed solutions, Mr. Deepak S. Parekh 6 Yes
safety and risk management, transactions pertaining Mr. Nadir B. Godrej 6 Yes
to purchase/disposal of property(ies), major accounting Mr. M. M. Murugappan 6 Yes
provisions and write-offs, corporate restructuring, details of Mr. Bharat Doshi@ 2 Yes
any joint ventures or collaboration agreement, material default Mr. R. K. Kulkarni 6 Yes
in financial obligations, if any, fatal or serious accidents, any Mr. Anupam Puri 4# Yes
material effluent or pollution problems, transactions that Dr. Vishakha N. Desai 4 #
Yes
involve substantial payment towards goodwill, brand equity
Mr. Vikram Singh Mehta 6 Yes
or intellectual property, any issue that involves possible public
Mr. S. B. Mainak 4 Yes
or product liability claims of substantial nature, including
judgement or order which may have passed strictures on @ Ceased to be a Director with effect from the conclusion of
the conduct of your Company, quarterly details of foreign the 69th AGM held on 7th August, 2015.
exchange exposures and the steps taken by Management # In addition, Mr. Anand G. Mahindra, Dr. Pawan Goenka,
to limit the risks of adverse exchange rate movement and Mr. Anupam Puri and Dr. Vishakha N. Desai participated in
information on recruitment of Senior Officers just below the one Board Meeting through audio call. No sitting fees were
Board level. paid to them for participation through audio call.

Mahindra & Mahindra Limited 111

D. Meetings of Independent Directors In 2009, he was conferred the ‘NDTV Profit Business Leadership
Award', 'CNN-IBN Indian of the Year Award’ and 'Dataquest IT
The Independent Directors of your Company meet before
Person of the Year Award'.
the Board Meeting without the presence of the Chairman &
Managing Director, Executive Director, other Non-Independent Mr. Mainak is the Non-Executive Chairman of Credit Analysis
Director(s) or any other Management Personnel. and Research Limited. He is on the Boards of Mahindra &
These Meetings are conducted in an informal and flexible Mahindra Limited and ITC Limited, representing LIC. He
manner to enable the Independent Directors to, inter alia, is also a Member of CSR & Sustainability Committee of
discuss matters pertaining to review of performance of Non- ITC Limited.
Independent Directors and the Board as a whole, review
Mr. Mainak does not hold any shares in your Company.
the performance of the Chairman of the Company (taking
into account the views of the Executive and Non-Executive
Directors), assess the quality, quantity and timeliness of flow F. Codes of Conduct
of information between the Company Management and The Board of your Company has laid down two separate
the Board that is necessary for the Board to effectively and Codes of Conduct (“Codes”), one for all the Board Members
reasonably perform their duties. and the other for Senior Management and Employees of the
Five Meetings of Independent Directors were held during the Company. These Codes have been posted on the Company’s
year and these Meetings were well attended. website http://www.mahindra.com. All the Board Members
and Senior Management Personnel have affirmed compliance
with these Codes. A declaration signed by the Chairman &
E. Director(s) seeking Appointment/Re-appointment
Managing Director to this effect is enclosed at the end of
Mr. S. B. Mainak, Non-Independent Director, Nominee of this Report.
Life Insurance Corporation of India ("LIC") is liable to retire
The Code of Conduct for the Board Members of the Company
by rotation and being eligible for re-appointment at the
also includes Code for Independent Directors which is a guide
forthcoming AGM of your Company, has offered himself for
to professional conduct for Independent Directors, pursuant to
re-appointment.
section 149(8) and Schedule IV of the Act.
Mr. S. B. Mainak, a qualified Chartered Accountant, joined LIC
as a Direct Recruit Officer in 1983 and retired as its Managing
G. CEO/CFO Certification
Director with effect from 1st March, 2016. During his long
tenure at LIC, Mr. Mainak acquired wide range of experience As required under Regulation 17(8) of the Listing Regulations,
in several functions spanning Investments, Finance & Accounts the Chairman & Managing Director (CEO) and Group CFO,
and Marketing and held various positions including Senior/ Group CIO & President (Group Finance and M&A) of the
Branch Manager, Divisional Manager of Pension & Group Company have certified to the Board regarding the Financial
Superannuation and in various capacities in the Investment Statements for the year ended 31st March, 2016.
Department.
Mr. Mainak also had a stint in academics as a Professor H. Board Evaluation
(Life Insurance) and Head of Finance Department in National Pursuant to the provisions of the Act and the Listing
Insurance Academy ("NIA"), Pune, where he was instrumental Regulations, the Board has carried out an annual evaluation
in creating new teaching programmes in Finance & Accounts, of its own performance and that of its Committees as well as
Investment, GAAP Accounting and Insurance Investment performance of all the Directors individually. Feedback was
and Financial Reporting Standards. Mr. Mainak was Deputy sought by way of a structured questionnaire covering various
President of the Insurance Institute of India and a Member aspects of the Board’s functioning such as adequacy of the
of the Governing Board of NIA. He was earlier appointed by composition of the Board and its Committees, Board culture,
the Government of India on the Board of Satyam Computer execution and performance of specific duties, obligations
Services Limited as an Independent Director for restructuring and governance and the evaluation was carried out based on
the company. responses received from the Directors.

112 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

A separate exercise was carried out by the Governance, Nomination B. Remuneration to Non-Executive Directors for the
and Remuneration Committee of the Board to evaluate the year ended 31st March, 2016
performance of individual Directors. The performance evaluation Pursuant to the approval granted by the Shareholders of the
of the Non-Independent Directors and the Board as a whole Company at the 69th Annual General Meeting held on 7th August,
was carried out by the Independent Directors. The performance 2015, the eligible Non-Executive Directors are paid commission
evaluation of the Chairman of the Company was also carried out upto a maximum of 1% of the net profits of the Company for
by the Independent Directors, taking into account the views of each financial year, as computed in the manner laid down in
the Executive Director and Non-Executive Directors. The Directors section 198 of the Act or any statutory modification(s) or re-
expressed their satisfaction with the evaluation process. enactment thereof or Rs. 38 crores in the aggregate, whichever
I. Familiarisation Programme for Independent Directors is lower; provided that none of such Directors, in any Financial
Year individually receive a portion of such remuneration more
Pursuant to Regulation 25(7) of the Listing Regulations, the
than one quarter percent of the net profits of the Company.
Company imparted various familiarisation programmes for
its Directors including visit to Company's Plant, review of During the year under review, the Non-Executive Directors
Strategic Investments of the Company by Strategic Investment were paid a commission of Rs. 207.33 lakhs (provided for in
Committee, industry outlook at the Board Meetings, regulatory the accounts for the year ended 31st March, 2015), distributed
updates at Board and Audit Committee Meetings, Presentations amongst the Directors as under:
on Internal Control over Financial Reporting, Operational (Rs. in Lakhs)
Control over Financial Reporting, Prevention of Insider Trading Commission for the year ended
Directors 31st March, 2015, paid during the
Regulations, SEBI Listing Regulations, Framework for Related
year under review
Party Transactions, etc. Pursuant to Regulation 46 the details
Mr. Deepak S. Parekh 24.00
required are available on the website of your Company at the
Mr. Nadir B. Godrej 20.00
web link: http://www.mahindra.com/resources/investor-reports/
Mr. M. M. Murugappan 24.00
FY16/Annual Reports/Links-AnnualReport.zip.
Mr. Bharat Doshi@ 20.00
Mr. A. K. Nanda @@
II. REMUNERATION TO DIRECTORS 8.55
Mr. Narayanan Vaghul @@ 8.55
A. Remuneration Policy Mr. R. K. Kulkarni 22.58*
Your Company has a well-defined Policy for Remuneration of Mr. Anupam Puri 20.00
the Directors, Key Managerial Personnel and other Employees. Mr. S. B. Mainak 18.00 #
The Policy was approved by the Board of your Company (Nominee of LIC)
at its Meeting held on 31st October, 2014, based on the Mr. Vikram Singh Mehta 20.00
recommendations made by the Governance, Nomination and Dr. Vishakha N. Desai 21.65
Remuneration Committee (“GNRC”). This Policy is furnished in
@ Ceased to be a Director with effect from the conclusion of the
Annexure IV-B to the Board's Report. 69 th AGM held on 7th August, 2015.
GNRC while deciding the basis for determining the @@ Ceased to be Directors with effect from the conclusion of the
compensation, both fixed and variable to the Non-Executive 68th AGM held on 8th August, 2014.
Directors, takes into consideration various factors such as * The commission was paid to Khaitan & Co., in which Mr. R. K.
Kulkarni is a Partner.
Director’s participation in Board and Committee Meetings
# The commission was paid to LIC.
during the year, other responsibilities undertaken, such as
Membership or Chairmanship of Committees, time spent in A commission of Rs. 181.07 lakhs has been provided as payable
carrying out other duties, role and functions as envisaged in to the Non-Executive Directors in the accounts for the year
Schedule IV of the Act and Listing Regulations and such other under review. Non-Executive Directors are also paid sitting
factors as the GNRC may consider deem fit. fees of Rs. 1,00,000 each for every Meeting of the Board and
The elements of remuneration package of Executive Directors Rs. 50,000 each for every Committee Meeting other than
includes salary, benefits, stock options, provident fund, etc. The Stakeholders Relationship Committee. The sitting fees for every
Non-Executive Directors are paid remuneration in the form of Meeting of Stakeholders Relationship Committee is Rs. 10,000
sitting fees and commission. each for Non-Executive Director.

Mahindra & Mahindra Limited 113

The sitting fees paid to Non-Executive Directors and the commission payable to them for the year ended 31st March, 2016 along with
their respective Shareholdings in your Company are as under:

Directors Sitting Fees paid for the Board and Commission for the year ended 31st No. of Ordinary (Equity)
Committee Meetings held during March, 2016, provided as payable Shares held as on
the year ended 31st March, 2016 in the accounts of the Company 31st March, 2016
(Rs. in Lakhs) for the year under review
(Rs. in Lakhs)

Mr. Deepak S. Parekh 12.50 24.00 1,12,180

Mr. Nadir B. Godrej 16.00 20.00 4,79,732

Mr. M. M. Murugappan 13.50 24.00 1,00,000

Mr. Bharat Doshi@ 6.60 7.07 N.A.

Mr. R. K. Kulkarni 17.40* 24.00* 83,088

Mr. Anupam Puri 6.00 20.00 Nil

Mr. S. B. Mainak (Nominee of LIC) 4.00# 18.00# Nil

Dr. Vishakha N. Desai 5.30 24.00 Nil

Mr. Vikram Singh Mehta 14.00 20.00 Nil

@ Ceased to be a Director with effect from the conclusion of the 69 th AGM held on 7th August, 2015. Details of value of perquisites are given separately
in Annexure VII to the Board's Report.
* Sitting fees/commission were paid/ is payable to Khaitan & Co., in which Mr. R. K. Kulkarni is a Partner.
# Sitting fees/commission were paid/ is payable to LIC.

The Non-Executive Directors were not granted stock options during the year under review.

C. Remuneration paid/payable to Managing Director and Executive Director (Whole-time Directors) for the year
ended 31st March, 2016
Remuneration to Whole-time Directors is fixed by the Governance, Nomination and Remuneration Committee which is subsequently
approved by the Board of Directors and Shareholders at a General Meeting.

Following is the remuneration paid/payable to the Whole-time Directors during the year ended 31st March, 2016:

Directors (Rs. in Lakhs) Contract

Period
Salary1 Commission Company’s Perquisites and Total
Contribution Allowances
to Funds2

Mr. Anand G. Mahindra (Chairman & 293.86 318.90 40.87 5.04 658.67 4th April, 2012 to 3rd April,
Managing Director) 2017

Dr. Pawan Goenka [Executive Director & 283.09 288.13 40.62 547.69$ 1159.53 23rd September, 2013 to
Group President (Auto and Farm Sector)] 22nd September, 2018

1
Includes Privilege Leave Encashment.
2
Aggregate of the Company’s contributions to Superannuation Fund and Provident Fund.
$ This includes Rs. 521.39 lakhs being perquisite value of ESOPs of the Company exercised during the year.

Notes:
a. Notice period applicable to each of the Whole-time Directors is six months.
b. Employee Stock Options and Commission are the only components of remuneration that are performance-linked. All other components are fixed.

114 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

D. The Stock Option granted to Directors, the period over which accrued and over which exercisable are as
under:
Name of Directors to whom Stock Designation 2000 Scheme 2010 Scheme
Options have been granted
Options Options Options Options Options Options Options Options Options
granted in granted in granted in granted in granted in granted in granted in granted in granted in
December, June, 2005** October, September, July, 2007 August, September, January, August,
2001* 2005 2006 2008 2012 2011 2015
(1) (2) (3) (4) (5) (6) (7) (8) (9)

Mr. Anand G. Mahindra Chairman & Nil Nil Nil Nil Nil Nil Nil Nil Nil
Managing
Director
Dr. Pawan Goenka Executive 25,290 *7,500*** *15,000*** *11,345*** *12,543*** *37,336*** Nil *71,080 62,635
Director & Group
President (Auto
and Farm Sector)
Mr. Deepak S. Parekh Independent 20,000 *5,000 Nil Nil Nil Nil Nil Nil Nil
Director

Mr. Nadir B. Godrej Independent 20,000 *5,000 Nil Nil Nil Nil Nil Nil Nil
Director
Mr. M. M. Murugappan Independent 20,000 *5,000 Nil Nil Nil Nil Nil Nil Nil
Director
Mr. R. K. Kulkarni Independent 20,000 *5,000 Nil Nil Nil Nil Nil Nil Nil
Director
Mr. Anupam Puri Independent 20,000 @ 5,000*** Nil Nil Nil Nil Nil Nil Nil
Director
Dr. Vishakha N. Desai Independent Nil Nil Nil Nil Nil Nil 10,000 Nil Nil
Director
Mr. Vikram Singh Mehta Independent Nil Nil Nil Nil Nil Nil 10,000 Nil Nil
Director
Mr. S. B. Mainak Nominee Director Nil Nil Nil Nil Nil Nil Nil Nil Nil

@ unexercised options lapsed.

Options granted on Vesting period Exercise period Exercise price

(1) December, 2001 Already vested in December, 2002 Within five years from the date of vesting **Rs. 59 per share***
(2) June, 2005 Already vested in June, 2006 Within five years from the date of vesting **Rs. 454 per share***
(3) October, 2005 Already vested in October, 2006 Within five years from the date of vesting Rs. 361 per share***
(4) September, 2006 Four equal instalments in September, 2007, 2008, On the date of Vesting or within five years Rs. 616 per share***
2009 and 2010 respectively from the date of Vesting
(5) July, 2007 Four equal instalments in July, 2008, 2009, 2010 On the date of Vesting or within five years Rs. 762 per share***
and 2011 respectively from the date of Vesting
(6) August, 2008 Four equal instalments in August, 2009, 2010, 2011 On the date of Vesting or within five years Rs. 500 per share***
and 2012 respectively from the date of Vesting
(7) September, 2012 Four equal instalments in September, 2013, 2014, On the date of Vesting or within five years Rs. 662 per share
2015 and 2016 respectively from the date of Vesting
(8) January, 2011 Five equal instalments in January, 2012, 2013, 2014, On the date of Vesting or within five years Rs. 5 per share
2015 and 2016 respectively from the date of Vesting
(9) August, 2015 Four instalments in February, 2017, 2018, 2019 and On the date of Vesting or within five years Rs. 5 per share
2020 respectively from the date of Vesting

* All these Options have been exercised.

** The Options granted stands augmented by an equal number of Options and the Exercise Price stands reduced to half on account of the 1:1 Bonus Issue made in September, 2005.
*** Further, the number of Stock Options granted and outstanding as on 30 th March, 2010, stands augmented by an equal number of Options and Exercise Price stands reduced to half
on account of Sub-division of each Ordinary (Equity) Share of the Company having a Face Value of Rs. 10 each fully paid-up into 2 (Two) Ordinary (Equity) Shares of the Face Value
of Rs. 5 each fully paid-up.

Mahindra & Mahindra Limited 115

III. RISK MANAGEMENT and the Board of Directors of the Company. It is authorised
Your Company has a well-defined risk management framework to, inter alia, review and monitor the Auditor’s independence
in place. The risk management framework works at various and performance, effectiveness of audit process, oversight of
levels across the Company. These levels form the strategic the Company’s financial reporting process and the disclosure
defence cover of the Company’s risk management. The of its financial information, review with the management,
Company has a robust organisational structure for managing the quarterly and annual financial statements and auditor’s
and reporting on risks. report before submission to the Board for approval, select and
Your Company has constituted a Risk Management Committee establish accounting policies, review Reports of the Statutory
consisting of Board members which is authorised to monitor and the Internal Auditors and meet with them to discuss their
and review risk management plan and risk certificate. The findings, suggestions and other related matters, approve
Committee is also empowered, inter alia, to review and
(wherever necessary) transactions of the Company with
recommend to the Board the modifications to the Risk
related parties including subsequent modifications thereof,
Management Policy. Further, the Board has constituted a
Corporate Risk Council comprising the Senior Executives of grant omnibus approvals for related party transactions subject
the Company. The terms of reference of the Council comprises to fulfilment of certain conditions, scrutinise inter-corporate
review of risks and Risk Management Policy on periodic loans and investments, valuation of undertakings or assets
intervals. of the Company, review the risk assessment and minimisation
The Risk Management Policy approved by the Board, inter alia, procedures, evaluate internal financial controls and risk
includes identification therein of elements of risk, including management systems, monitor end use of the funds raised
those which in the opinion of the Board, may threaten the through public offers and related matters, etc.
existence of the Company. Risk management process has
The Committee is also empowered to, inter alia, recommend
been established across the Company and is designed to
identify, assess and frame a response to threats that affect the the remuneration payable to the Statutory Auditors and
achievement of its objectives. Further, it is embedded across to recommend a change in the Auditors, if felt necessary.
all the major functions and revolves around the goals and Further, the Committee is empowered to recommend to the
objectives of the Company. Board the term of appointment and remuneration of the Cost
Auditor, Internal Auditor and Chief Financial Officer (i.e., the
IV. COMMITTEES OF THE BOARD whole-time Finance Director or any other person heading the
finance function or discharging that function), etc., review
A. Audit Committee the functioning of the Whistleblower Policy/Vigil Mechanism. The
This Committee comprises of the following Directors viz. Committee also reviews Financial Statements and investments
Mr. Deepak S. Parekh (Chairman of the Committee), Mr. Nadir of unlisted subsidiary companies, Management Discussion &
B. Godrej, Mr. M. M. Murugappan and Mr. R. K. Kulkarni. All Analysis of financial condition and results of operations, material
the Directors are Independent Directors. During the year under individual transactions with related parties not in normal course
review, Mr. Bharat Doshi ceased to be a member with effect of business or which are not on an arm’s length basis, if any.
from the conclusion of the 69 Annual General Meeting held
th
The Audit Committee has been granted powers as prescribed
on 7th August, 2015. All the Members of the Committee possess
under Regulation 18(2)(c) of the Listing Regulations and reviews
strong accounting and financial management knowledge. The
all the information as prescribed in Part C of Schedule II of the
Company Secretary is the Secretary to the Committee.
Listing Regulations. The Committee also reviews on quarterly
The terms of reference of this Committee are very wide and basis the Report on compliance under Code of Conduct for
are in line with the regulatory requirements mandated by Prevention of Insider Trading adopted by the Company pursuant
the Act and Part C of Schedule II of the Listing Regulations. to Securities and Exchange Board of India (Prohibition of Insider
Besides having access to all the required information from Trading) Regulations, 2015. Further, Compliance Reports under
within the Company, the Committee can obtain external the Sexual Harassment of Women at Workplace (Prevention,
professional advice whenever required. The Committee acts Prohibition and Redressal) Act, 2013 and Whistleblower Policy
as a link between the Statutory and the Internal Auditors are also placed before the Committee.

116 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

The Meetings of the Audit Committee are also attended by the The Committee also administers the Company’s Employee
Chairman & Managing Director, the Executive Director & Group Stock Option Schemes formulated from time to time including
President (Auto and Farm Sector), the Group CFO Group CIO “Mahindra & Mahindra Limited Employees’ Stock Option
& President (Group Finance and M&A), the President (Group Scheme - 2000”, “Mahindra & Mahindra Limited Employees
M&A, Corporate Accounts & Group Secretarial), the Executive Stock Option Scheme - 2010” and take appropriate decisions in
Vice President – Corporate Finance & Investor Relations, the terms of the concerned Scheme(s).
Statutory Auditors, the Chief Internal Auditor, the Controller The terms of reference of this Committee are in line with the
of Accounts, the Managing Partner – Mahindra Partners & regulatory requirements mandated in the Act and Part D of
President (Group Legal) and the Company Secretary. The Cost Schedule II of the Listing Regulations.
Auditor also attends the Committee Meeting at which the Cost The scope of the Committee also includes review of market
Audit Report(s) are considered. practices and decide on remuneration packages to the Chairman
The Chairman of the Audit Committee, Mr. Deepak S. Parekh & Managing Director, the Executive Director(s), Presidents,
was present at the 69th Annual General Meeting of the etc., lay down performance parameters for the Chairman &
Company held on 7th August, 2015 to address the Shareholders’ Managing Director, the Executive Director(s), Presidents, etc.
and review the same.
queries pertaining to Annual Accounts of the Company.
In addition to the above, the Committee’s role includes
The Committee met six times during the year under review.
identifying persons who are qualified to become Directors and
The Committee Meetings were held on 28th May, 2015,
who may be appointed in Senior Management in accordance
6th August, 2015, 5th November, 2015, 21st December, 2015,
with the criteria laid down, recommending to the Board their
11th February, 2016 and 28th March, 2016. The gap between two appointment and removal and carrying out evaluation of every
Meetings did not exceed one hundred and twenty days. The Director’s performance.
attendance at the Meetings was as under:
The Committee has also formulated the criteria for determining
Members Number of Meetings qualifications, positive attributes and independence of a
attended Director and recommended to the Board a Policy relating to
Mr. Deepak S. Parekh (Chairman) 6 the remuneration for the Directors, Key Managerial Personnel
Mr. Nadir B. Godrej 6
and other Employees.

Mr. M. M. Murugappan 6 The Committee also carries out a separate exercise to evaluate
Mr. R. K. Kulkarni 6 the performance of individual Directors. Feedback is sought by
Mr. Bharat Doshi@ 2 way of structured questionnaires covering various aspects of
the Board’s functioning such as adequacy of the composition
@ Ceased to be a Director and thereby Member of the Committee with
effect from the conclusion of the 69 th AGM held on 7th August, 2015. of the Board and its Committees, Board culture, execution and
performance of specific duties, obligations and governance and
B. Governance, Nomination and Remuneration performance evaluation is carried out based on the responses
Committee received from the Directors.

The Governance, Nomination and Remuneration Committee The performance evaluation of Independent Directors were
has been vested with the authority to, inter alia, recommend based on the criteria viz. attendance at Board and Committee
nominations for Board Membership, develop and recommend Meetings, skill, experience, ability to challenge views of others
policies with respect to composition of the Board commensurate in a constructive manner, knowledge acquired with regard to
with the size, nature of the business and operations of the the Company’s business, understanding of industry and global
Company, establish criteria for selection to the Board with trends, etc.
respect to the competencies, qualifications, experience, The Committee is also empowered to opine, in respect of
track record, integrity, establish Director retirement policies the services rendered by a Director in professional capacity,
and appropriate succession plans and determine overall whether such Director possesses requisite qualification for the
compensation policies of the Company. practice of the profession.

Mahindra & Mahindra Limited 117

All Committee members are Independent Directors including the transfer, provided the transferee does not hold 2,00,000 or
Chairman. The members are Mr. M. M. Murugappan (Chairman more Ordinary (Equity) Shares in your Company. The Committee
of the Committee), Mr. Nadir B. Godrej, Mr. R. K. Kulkarni and is also authorised to approve request for transmission of shares
Mr. Vikram Singh Mehta. Mr. Anand G. Mahindra and Mr. Rajeev and issue of duplicate share certificates.
Dubey, Group President (HR & Corporate Services) & CEO (After- The role and terms of reference of the Committee covers the
Market Sector) are permanent invitees to the Committee. areas as contemplated under Regulation 20 read with Part D
of Schedule II of the Listing Regulations and section 178 of the
As per section 178(7) of the Act and Secretarial Standards,
Act, as applicable, besides the other terms as referred by the
the Chairman of the Committee or, in his absence, any other Board of Directors.
Member of the Committee authorised by him in this behalf shall
As per section 178(7) of the Act and the Secretarial Standards,
attend the General Meetings of the Company. The Chairman
the Chairman of the Committee or, in his absence, any other
of the Committee, Mr. M. M. Murugappan was present at the
Member of the Committee authorised by him in this behalf
69th Annual General Meeting of the Company held on shall attend the General Meetings of the Company. The
7th August, 2015. Chairman of the Committee, Mr. R. K. Kulkarni was present
The Committee met four times during the year under review. at the 69th Annual General Meeting of the Company held on
7th August, 2015.
The Committee Meetings were held on the following dates
28th May, 2015, 6th August, 2015, 5th November, 2015 and During the year, 19 complaints were received from the
29th March, 2016. The attendance at the Meetings was as under: Shareholders, all of which have been attended/resolved to
the satisfaction of the Shareholders. As of date, there are no
Members Number of Meetings pending share transfers pertaining to the year under review.
attended
The Committee met four times during the year under review.
Mr. M. M. Murugappan (Chairman) 4 The Committee Meetings were held on 29th May, 2015,
Mr. Nadir B. Godrej 4 6th November, 2015, 12th February, 2016 and 29th March, 2016.
The attendance at the Meetings was as under:
Mr. R. K. Kulkarni 4
Mr. Vikram Singh Mehta 4 Members Number of Meetings
attended
C. Stakeholders Relationship Committee Mr. R. K. Kulkarni (Chairman) 4
Mr. Anand G. Mahindra 4
The Company’s Stakeholders Relationship Committee functions
Mr. Bharat Doshi@ 1
under the Chairmanship of Mr. R. K. Kulkarni, Independent
Dr. Vishakha N. Desai 3
Director. Mr. Anand G. Mahindra, Dr. Vishakha N. Desai and
Dr. Pawan Goenka^ 3
Dr. Pawan Goenka are the other Members of the Committee.
@ Ceased to be a Director and thereby Member of the Committee with
Mr. Narayan Shankar, Company Secretary is the Compliance effect from the conclusion of the 69 th AGM held on 7th August, 2015.
Officer of the Company. Consequent to the cessation as a ^ Appointed as a Member of the Committee with effect from
Director in the Company, Mr. Bharat Doshi ceased to be a 7th August, 2015.
Member of the Committee with effect from the conclusion
of the 69th Annual General Meeting held on 7th August, 2015. D. Corporate Social Responsibility Committee
Dr. Pawan Goenka was inducted as a Member of the Committee
The Corporate Social Responsibility (“CSR”) Committee is a
in place of Mr. Doshi.
Committee constituted by the Board with powers, inter alia,
The Committee meets, as and when required, to inter alia, to make donations/contributions to any Charitable and/or CSR
deal with matters relating to transfer/transmission of shares, projects or programs to be implemented directly or through an
request for issue of duplicate share certificates and monitor executing agency or other Not for Profit Agency with minimum
redressal of the grievances of the security holders of the three years proven track record or through a Corporate
Company relating to transfers, non-receipt of Annual Report, Foundation or other reputed Non-Governmental Organisation,
non-receipt of dividends declared, etc. With a view to expedite of at least two percent of the Company’s average net profits
the process of share transfers, necessary authority has been during the three immediately preceding Financial Years in
delegated to certain officers of the Company to approve the pursuance of its CSR Policy for the Company’s Corporate Social
transfers of not more than 10,000 Ordinary (Equity) Shares per Responsibility Initiatives.

118 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

The scope of functions of the Committee includes, inter constituted a Risk Management Committee. The Committee
alia, the formulation and recommendation to the Board for is headed by Dr. Pawan Goenka. The other Members are
its approval and implementation, the Business Responsibility Mr. Deepak S. Parekh, Mr. Nadir B. Godrej, Mr. M. M. Murugappan
(“BR”) Policy(ies) of the Company, undertake periodical and Mr. R. K. Kulkarni. Consequent to the cessation as a Director
assessment of the Company’s BR performance, review the draft in the Company, Mr. Bharat Doshi ceased to be a member of the
Business Responsibility Report and recommend the same to the
Committee with effect from the conclusion of the 69th Annual
Board for its approval and inclusion in the Annual Report of
General Meeting held on 7th August, 2015.
the Company.
During the year under review, the Committee met on
The role of this Committee also includes recommendation of
28th May, 2015 and 5th November, 2015 which was attended by
the amount of expenditure to be incurred on the CSR activities
all of its Members.
as enumerated in Schedule VII of the Act and also referred to
in the CSR Policy of the Company, as also to monitor the CSR
F. Research & Development Committee (a voluntary
Policy from time to time, etc.
initiative of your Company)
The CSR Policy for your Company as duly amended is displayed The Research & Development (“R&D”) Committee, which was
on the Company’s website http://www.mahindra.com.
constituted by the Board in 1998, provides direction on the
Dr. Vishakha N. Desai, Independent Director is the Chairperson R&D mission and strategy and key R&D and technology issues.
of the Committee. Mr. Anand G. Mahindra, Dr. Pawan Goenka, The Committee also reviews and makes recommendations on
Mr. R. K. Kulkarni and Mr. Vikram Singh Mehta are the other the skills and competencies required and the structure and
Members of the Committee. Out of the total number of the process needed to ensure that the R&D initiatives result in
Members of the Committee, three are Independent Directors. products that are in keeping with the business needs. Mr. M. M.
Consequent to the cessation as a Director in the Company,
Murugappan is the Chairman of the Committee. Mr. Anand G.
Mr. Bharat Doshi ceased to be a Member of the Committee
Mahindra, Dr. Pawan Goenka and Mr. Nadir B. Godrej are the
with effect from the conclusion of the 69th Annual General
other Members of the Committee. Consequent to the cessation
Meeting held on 7th August, 2015. The Committee met three
as a Director in the Company, Mr. Bharat Doshi ceased to be
times during the year. The Committee Meetings were held
on 28th May, 2015, 5th November, 2015 and 29th March, 2016. a Member of the Committee with effect from the conclusion
The attendance at the Meetings was as under: of the 69th Annual General Meeting held on 7th August, 2015.
The Committee met three times during the year under review
Members Number of Meetings on 28th May, 2015, 5th November, 2015 and 11th February, 2016.
attended
These Meetings were attended by all of its Members.
Dr. Vishakha N. Desai (Chairperson) 2
Mr. Anand G. Mahindra 3 G. Strategic Investment Committee (a voluntary
Dr. Pawan Goenka 3 initiative of your Company)
Mr. Bharat Doshi@ 1 The Strategic Investment Committee is constituted by the Board
Mr. R. K. Kulkarni 3 with powers, inter alia, to evaluate and scrutinise significant
Mr. Vikram Singh Mehta 3 investments/funding including but not limited to business
acquisitions, reviewing and monitoring existing investments
@ Ceased to be a Director and thereby Member of the Committee with
in subsidiaries, joint ventures and other group companies,
effect from the conclusion of the 69 th AGM held on 7th August, 2015.
overseeing and reviewing performance of various subsidiaries
and making necessary recommendations to the Board from time
E. Risk Management Committee to time including disinvestments. Mr. Anand G. Mahindra is the
Regulation 21 of the Listing Regulations mandates constitution Chairman of the Committee. Mr. Deepak S. Parekh, Mr. Nadir B.
of the Risk Management Committee. The Committee is required Godrej, Mr. Vikram Singh Mehta and Mr. Anupam Puri are the
to lay down the procedures to inform to the Board about the other Members of the Committee. Consequent to the cessation
risk assessment and minimisation procedures and the Board as a Director in the Company, Mr. Bharat Doshi ceased to be a
shall be responsible for framing, implementing and monitoring Member of the Committee with effect from the conclusion of
the Risk Management Plan of the Company. The Board has the 69th Annual General Meeting held on 7th August, 2015.

Mahindra & Mahindra Limited 119

The Committee met five times during the year under review V. SUBSIDIARY COMPANIES
on 28th May, 2015, 6th August, 2015, 5th November, 2015,
Regulation 16 of the Listing Regulations defines a “material
11th February, 2016 and 28th March, 2016. The attendance at
subsidiary” to mean a subsidiary, whose income or net worth
the Meetings was as under:
exceeds twenty percent of the consolidated income or net
Members Number of Meetings worth respectively, of the listed entity and its subsidiaries in
attended the immediately preceding accounting year.
Mr. Anand G. Mahindra (Chairman) 5 Under this definition, the Company did not have any unlisted
Mr. Bharat Doshi@ 2 material subsidiary, incorporated in India during the year
Mr. Deepak S. Parekh 5 under review.
Mr. Nadir B. Godrej 5
The subsidiaries of the Company function independently, with
Mr. Vikram Singh Mehta 5 an adequately empowered Board of Directors and adequate
Mr. Anupam Puri 4 resources. For more effective governance, the minutes of Board
@ Ceased to be a Director and thereby Member of the Committee with Meetings of subsidiaries of the Company are placed before the
effect from the conclusion of the 69 th AGM held on 7th August, 2015. Board of Directors of the Company for their review at every
quarterly Meeting.
H. Loans & Investment Committee The other requirement of Regulation 24 of the Listing
(a voluntary initiative of your Company) Regulations with regard to Corporate Governance
The Loans & Investment Committee is authorised to approve loans requirements for Subsidiary Companies have been complied
and investment, disinvestment, borrowing moneys and related with.
aspects of fund management in accordance with the authority
granted and the parameters prescribed by the Board with
VI. DISCLOSURES
Mr. Anand G. Mahindra as the Chairman of the Committee and
the other Members being Dr. Pawan Goenka, Mr. R. K. Kulkarni A. Policy for determining ‘material’ subsidiaries
and Mr. Vikram Singh Mehta. Consequent to the cessation as Your Company has formulated a Policy for Determining
a Director in the Company, Mr. Bharat Doshi ceased to be a ‘Material’ Subsidiaries as defined in Regulation 16 of the
Member of the Committee with effect from the conclusion of Listing Regulations. This Policy has also been posted on the
the 69th Annual General Meeting held on 7th August, 2015. website of the Company and can be accessed through web
The Committee met eight times during the year under review link: http://www.mahindra.com/resources/investor-reports/FY16/
on 21st May, 2015, 23rd July, 2015, 16th September, 2015, Annual Reports/Links-AnnualReport.zip.
27th October, 2015, 14th December, 2015, 5th February, 2016, B. Policy on Materiality of and Dealing with Related
11th February, 2016 and 2nd March, 2016. The attendance at the Party Transactions
Meetings was as under:
Your Company has formulated a Policy on Materiality of
Members Number of Meetings and Dealing with Related Party Transactions which specify
attended the manner of entering into related party transactions. This
Mr. Anand G. Mahindra (Chairman) 7 Policy has also been posted on the website of the Company
and can be accessed through web link: http://www.mahindra.
Dr. Pawan Goenka 5
com/resources/investor-reports/FY16/Annual Reports/Links-
Mr. Bharat Doshi@ 2 AnnualReport.zip.
Mr. R. K. Kulkarni 7

Mr. Vikram Singh Mehta 4*

C. Disclosure of Transactions with Related Parties
During the Financial Year 2015-16, there were no materially
@ Ceased to be a Director and thereby Member of the Committee with
effect from the conclusion of the 69 th AGM held on 7th August, 2015.
significant transactions or arrangements entered into between
* Out of four Meetings, he participated in three Meetings through the Company and its Promoters, Directors or their Relatives or
video-conference facility. the Management, Subsidiaries, etc. that may have potential

120 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

conflict with the interests of the Company at large. Further, Audit Committee through the Chairperson. No personnel has
details of related party transactions are presented in Note been denied access to the Audit Committee. All Employees,
Number 42 to Annual Accounts in the Annual Report. Directors, vendors, suppliers or other stakeholders associated
with the Company can make the Protected Disclosure through
D. Disclosure of Accounting Treatment in preparation an email to whistleblower.mahindra@ethicshelpline.in.
of Financial Statements The Chairperson of the Audit Committee can be reached by
The financial statements of the Company have been prepared in sending an email to chairpersonauditcommittee@mahindra.
accordance with the Generally Accepted Accounting Principles com or by sending a letter to the below address:
in India (Indian GAAP) and comply with the Accounting Chairperson of the Audit Committee
Standards specified under section 133 of the Act. Mahindra & Mahindra Limited
Mahindra Towers,
E. Code for Prevention of Insider Trading Practices Dr. G.M. Bhosale Marg,
The Company has instituted a comprehensive Code of Conduct P.K. Kurne Chowk, Worli,
for Prevention of Insider Trading, in compliance with the Mumbai 400 018.
Securities and Exchange Board of India (Prohibition of Insider
Whistleblower Policy of the Company is available on the
Trading) Regulations, 2015 (“the Regulations”) which came
website of the Company and can be accessed at the web
into force from 15th May, 2015. The Company has formulated
link: http://www.mahindra.com/resources/investor-reports/FY16/
and adopted the ‘Code of Practices and Procedures for
Annual Reports/Links-AnnualReport.zip.
Fair Disclosure of Unpublished Price Sensitive Information’
and ‘Code of Conduct for Prevention of Insider Trading in
Securities of Mahindra & Mahindra Limited’ (“M&M Code VII. MEANS OF COMMUNICATION
of Conduct”). These Codes were also made effective from
Your Company, from time to time and as may be required,
15th May, 2015.
communicates with its security-holders and investors through
M&M Code of Conduct has been formulated to regulate, multiple channels of communications such as dissemination
monitor and ensure reporting of trading by the Employees of information on the website of the Stock Exchanges,
and Connected Persons designated on the basis of their Press Releases, the Annual Reports and uploading relevant
functional role in the Company towards achieving compliance information on its website.
with the Regulations and is designed to maintain the highest
The unaudited quarterly results are announced within forty-
ethical standards of trading in Securities of the Company by five days of the close of each quarter, other than the last
persons to whom it is applicable. M&M Code of Conduct quarter. The audited annual results are announced within
lays down Guidelines, which advises them on procedures to sixty days from the end of the financial year as required under
be followed and disclosures to be made, while dealing with the Listing Regulations. The aforesaid financial results are
shares of the Company and cautions them of the consequences announced to the Stock Exchanges within the statutory time
of violations. period from the conclusion of the Board Meeting(s) at which
these were considered and approved.
F. Whistleblower Policy
Your Company discloses to the Stock Exchanges, all information
The Vigil Mechanism as envisaged in the Act and the required to be disclosed under Regulation 30 read with Part ‘A’
Rules prescribed thereunder and the Listing Regulations is and Part ‘B’ of Schedule III of the Listing Regulations including
implemented through the Whistleblower Policy to provide for material information having a bearing on the performance/
adequate safeguards against victimisation of persons who use operations of the Company and other price sensitive
such mechanism and make provision for direct access to the information. All information is filed electronically on BSE’s
Chairperson of the Audit Committee. online portal – BSE Corporate Compliance & Listing Centre
As such the Whistleblower Policy provides for protected (Listing Centre) and on NSE Electronic Application Processing
disclosure and protection to the Whistleblower. Under the Vigil System (NEAPS), the online portal of National Stock Exchange
Mechanism all Stakeholders have been provided access to the of India Limited.

Mahindra & Mahindra Limited 121

Presentations are also made to international and national The Company’s privately placed Non-Convertible
institutional investors and analysts. These presentations and Debentures of Rs. 500 crores are listed on the Debt
other disclosures which are required to be disseminated on Segment of BSE.
the Company’s website under the Listing Regulations have
been uploaded on the website of the Company and as per Name and Address of Type of Security/ International
the Archival Policy of the Company would be hosted on the the Exchanges Scrip Code Securities
website for a minimum period of five years from the date of Identification
respective disclosures. The Annual Report of the Company, the Number (ISIN)

quarterly/half-yearly and the audited financial statements and

BSE Limited Ordinary (Equity)
the official news releases of the Company are also disseminated
Phiroze Jeejeebhoy Shares/ 500520
on the Company’s website. The quarterly, half-yearly and yearly
Towers,
results are also published in Business Standard and Sakal which Dalal Street, Fort,
are national and local dailies respectively. These are not sent Mumbai 400 001.
individually to the Shareholders.
INE101A01026
National Stock Exchange Ordinary (Equity)
of India Limited Shares/M&M
VIII. GENERAL SHAREHOLDER INFORMATION Exchange Plaza, C-1,
Block G, Bandra-Kurla-
1. 70th Annual General Meeting
Complex, Bandra (East),
Date : 10 th August, 2016 Mumbai-400 051.

Time : 3:00 p.m.

Bourse de Luxembourg Global USY541641194
Venue : Birla Matushri Sabhagar, 19, Sir Vithaldas Society de la Bourse de Depository
Thackersey Marg (New Marine Lines), Luxembourg, Societe Receipts (GDRs)
Mumbai - 400 020. Anonyme/ R.C.B.
6222, B.P. 165, L-2011,
2. Financial Year of the Company Luxembourg.
The financial year covers the period from 1st April to
London Stock Exchange GDRs / MHID
31st March.
Plc, 10, Paternoster
3. Date of Book Closure and Dividend Payment Date Square, London -
EC4M 7LS.
Book Closure for Dividend will be from Saturday, 23rd July,
2016 to Wednesday, 10 th August, 2016, both days inclusive
BSE Limited Debentures/ INE101A08070
and the Dividend would be paid/despatched after Phiroze Jeejeebhoy 949342 / Scrip ID:
10th August, 2016. Towers, 955MML2063
Dalal Street, Fort,
4. Listing of Ordinary (Equity) Shares, Debentures on Stock Mumbai 400 001.
Exchanges and Stock Code
Your Company’s Ordinary (Equity) Shares are listed on BSE
5. Corporate Identity Number: L65990MH1945PLC004558
Limited (BSE) and National Stock Exchange of India Limited
(NSE). The Global Depository Receipts (GDRs) of your
6. Registered Office Address
Company are listed on the Luxembourg Stock Exchange
Mahindra & Mahindra Limited
and are also admitted for trading on International
Gateway Building,
Order Book (IOB) of the London Stock Exchange. The
Apollo Bunder,
requisite listing fees have been paid in full to all these
Mumbai - 400 001.
Stock Exchanges.

122 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

7. Stock Price Data

Equity Shares GDRs

BSE Limited National Stock Exchange of Luxembourg Stock Exchange

India Limited
Month
HIGH LOW HIGH LOW HIGH LOW

Rs. Rs. Rs. Rs. US$ US$

April, 2015 1,289.00 1,139.75 1,290.00 1,137.70 20.59 18.01

May, 2015 1,277.00 1,145.45 1,277.00 1,144.00 19.80 18.17

June, 2015 1,342.15 1,176.90 1,341.90 1,176.00 20.96 18.60

July, 2015 1,378.00 1,246.00 1,382.00 1,245.35 21.29 19.72

August, 2015 1,441.45 1,206.00 1,442.05 1,205.10 21.89 18.38

September, 2015 1,274.75 1,095.00 1,279.10 1,092.15 19.24 16.64

October, 2015 1,300.90 1,175.00 1,301.40 1,173.30 19.95 18.08

November, 2015 1,369.65 1,201.00 1,372.00 1,200.05 20.56 18.43

December, 2015 1,380.80 1,196.30 1,381.50 1,195.50 20.61 18.31

January, 2016 1,278.00 1,102.40 1,279.45 1,101.00 18.76 16.79

February, 2016 1,268.05 1,092.00 1,269.00 1,091.25 18.12 16.49

March, 2016 1,280.00 1,184.00 1,279.70 1,184.00 18.80 17.79

8. Stock Performance

The performance of your Company’s shares relative to the S&P BSE Sensitive Index is given in the chart below:

M&M on BSE S&P BSE Sensex

1600 30,000

28,000
1400
26,000
S&P BSE SENSEX

24,000
1200
M&M ON BSE

22,000

1000 20,000

18,000
800
16,000

14,000
600
12,000

400 10,000
Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16

Closing Price on Last Trading day of the Month

Mahindra & Mahindra Limited 123

The performance of your Company’s shares relative to the NSE Nifty 50 Index is given in the chart below:

M&M on NSE NSE Nifty 50

1600 9000

8000
1400
7000

1200 6000

NSE NIFTY 50
M&M ON NSE

5000
1000
4000

800 3000

2000
600
1000

400 0
Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16

Closing Price on Last Trading day of the Month

9. Registrar and Transfer Agents Group CFO, Group CIO & President (Group Finance and
The Board of Directors of the Company at its Meeting M&A) or Mr. Zhooben Bhiwandiwala, Managing Partner -
held on 30 th May, 2016, decided to appoint M/s. Karvy Mahindra Partners & President (Group Legal) or Mr. S.
Computershare Private Limited, details whereof are given Durgashankar, President (Group M&A, Corporate Accounts
below, as its Registrar and Transfer Agents with effect & Group Secretarial) or Mr. Narayan Shankar, Company
from 13th June, 2016 in place of M/s. Sharepro Services Secretary of the Company have been severally authorised
(India) Private Limited. to approve the transfers of not more than 10,000 Ordinary
(Equity) Shares per transfer, provided the transferee
Karvy Computershare Private Limited
does not hold two lakh or more Ordinary (Equity)
Unit : Mahindra & Mahindra Limited
Shares in the Company. The Stakeholders Relationship
Karvy Selenium Tower B, Plot No. 31-32, Gachibowli,
Committee meets as and when required to inter alia
Financial District, Nanakramguda, Hyderabad,
consider the other transfer proposals, requests for issue
Telangana – 500 032, India.
of duplicate share certificates, attend to Shareholders’
Tel. No. : +91 40 6716 2222
grievances, etc.
Fax No. : +91 40 2342 0814
E-mail : einward.ris@karvy.com 11. Distribution of Shareholding as on 31st March, 2016
Website : www.karvycomputershare.com
Toll Free No. : 1800 3454 001 Number Number Number % of
of of of Shares Share-
10. Share Transfer System Shares held Shareholders held holding

Trading in Ordinary (Equity) Shares of the Company 1 to 1,000 1,57,744 1,52,99,961 2.46
through recognized Stock Exchanges is permitted only in
1,001 to 2,000 4,148 60,12,746 0.97
dematerialized form.
2,001 to 10,000 3,690 1,51,56,016 2.44
Shares sent for transfer in physical form are registered and
returned within a period of fifteen days from the date 10,001 to 20,000 414 57,82,870 0.93
of receipt of the documents, provided the documents are 20,001 and above 760 57,88,40,791 93.20
valid and complete in all respects. With a view to expedite
Total 1,66,756 62,10,92,384 100.00
the process of share transfers, Mr. V S Parthasarathy,

124 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

12. Dematerialisation of Shares and Liquidity 16. Address for correspondence

99.10% of the paid-up Ordinary (Equity) Share Capital Shareholders may correspond with the Registrar and
of your Company is held in a dematerialised form with Transfer Agents at:
National Securities Depository Limited and Central Karvy Computershare Private Limited
Depository Services (India) Limited as on 31st March, 2016. Unit : Mahindra & Mahindra Limited
The market lot of the Share of your Company is one Karvy Selenium Tower B, Plot No. 31-32, Gachibowli,
Share, as the trading in the Equity Share of your Company Financial District, Nanakramguda, Hyderabad,
Telangana – 500 032, India.
permitted only in dematerialised form. Non-Promoters’
Tel. No. : +91 40 6716 2222
holding as on 31st March, 2016 is around 74.56% and the
Fax No. : +91 40 2342 0814
stock is highly liquid.
E-mail : einward.ris@karvy.com
Website : www.karvycomputershare.com
13. Outstanding GDRs/ADRs/Warrants or any Convertible
Toll Free No. : 1800 3454 001
Instruments, Conversion date and likely impact on equity
for all matters relating to transfer/dematerialisation of
3,45,30,583 GDRs were outstanding as on 31st March, 2016.
shares, payment of dividend and any other query relating
Since the underlying Ordinary (Equity) Shares represented
to Equity Shares of your Company.
by GDRs have been allotted in full, the outstanding GDRs
have no impact on the Equity of the Company. There The Registrar and Transfer Agents also have an Office at:
are no other convertible instruments outstanding as on Karvy Computershare Private Limited
31st March, 2016. 24-B, Raja Bahadur Mansion,
Ground Floor,
14. Commodity price risk or Foreign Exchange Risk & hedging Ambalal Doshi Marg,
Behind BSE, Fort,
activities
Mumbai 400 023.
Commodities witnessed a sharp drop in prices in the financial
Tel. No. : +91 22 6623 5454/412/427
year under review led by Crude oil prices. Your Company was
able to capitalise and take benefit of the same along with Your Company has also designated investors@mahindra.com
other value engineering activities in the year. as an exclusive email ID for Investors for the purpose of
Your Company continues to watch the market situation registering complaints and the same has been displayed
closely and continues to focus on mitigating the inflationary on the Company’s website.
impact through “Commodity Risk Management” and Karvy Computershare Private Limited also acts as Registrar
other cost reduction measures. Hedging of commodities and Transfer Agents for the Listed Debentures of the
as a part of “Commodity Risk Management” as well as Company.
Foreign Exchange and Commodity price risks are being Securityholders would have to correspond with the
governed in accordance with the Foreign Exchange Risk respective Depository Participants for Shares held in
Management Policy and Commodity Risk Management demateralised form for transfer/transmission of Shares,
Policy, approved by the Board of Directors of your change of Address, change in Bank details, etc.
Company. For all investor related matters, the Company Secretary &
Compliance Officer can also be contacted at:
The details of Foreign Exchange hedging activities
Mahindra Towers,
undertaken by the Company is disclosed in Note No. 43 of
5th Floor, Dr. G. M. Bhosale Marg,
the Annual Report.
Worli, Mumbai – 400 018.
Tel. No. : +91 22 24975074
15. Plant Locations Fax No. : +91 22 24900833
Your Company’s manufacturing facilities are located at Email : investors@mahindra.com
Kandivali, Nashik, Igatpuri, Nagpur, Zaheerabad, Jaipur, Your Company can also be visited at its website:
Rudrapur, Haridwar and Mohali. http://www.mahindra.com

Mahindra & Mahindra Limited 125

17. Address for correspondence with Debenture Trustee no penalty or strictures were imposed on the Company by
the Stock Exchanges or SEBI or any statutory authority, on
Axis Trustee Services Limited
any matter related to the capital markets. The Company
2nd Floor, E-Wing, Axis House,
has also complied with the requirements of Corporate
Bombay Dyeing Mills Compound,
Governance Report of Paras (2) to (10) mentioned in Part
Pandurang Budhkar Marg,
‘C’ of Schedule V of the Listing Regulations and disclosed
Worli, Mumbai 400 025.
necessary information as specified in Regulation 17 to 27
Tel. No.: +91-22-2425 5216.
and Regulation 46(2) (b) to (i) in the respective places in
this Report.
18. Disclosures with respect to demat suspense account/
unclaimed suspense account
21. Compliance with Mandatory requirements
The Company does not have any shares in the demat Your Company has complied with all the mandatory
suspense account/unclaimed suspense account. requirements of the Listing Regulations relating to
Corporate Governance.
19. Management Discussion and Analysis Report
Management Discussion and Analysis Report forms part of
22. Compliance with Non-mandatory requirements
this Annual Report.
Audit Qualifications:
20. Details of non-compliance etc. During the year under review, there is no audit qualification
Your Company has complied with all the requirements of in your Company’s standalone financial statements. Your
regulatory authorities. During the last three years, there Company continues to adopt best practices to ensure
were no instances of non-compliance by the Company and regime of unqualified financial statements.

126 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

IX. GENERAL BODY MEETINGS:

Details of General Meetings and Special Resolutions passed
Annual General Meetings ("AGM") held during the past 3 years and the Special Resolutions passed therein:

Year Date Time Special Resolutions passed

2013 13th August 2013 3.30 p.m. No Special Resolution was passed.

2014 8th August, 2014 3.30 p.m. 1 Appointment of Dr. Pawan Goenka as an Executive Director and approval of
the remuneration payable to him.

2 Create, offer, issue and allot Ordinary (Equity) shares of Rs. 5 each of the
Company to Mahindra & Mahindra Employees’ Stock Option Trust.

3 Invite/accept/renew unsecured/secured Deposits from the public and/or

Members of the Company

4 Borrow by way of securities including but not limited to secured/unsecured

redeemable Non-Convertible Debentures and/or Commercial Paper to be
issued under Private Placement basis upto Rs. 2,500 crores.

2015 7th August, 2015 3.00 p.m. 1 Borrow by way of securities including but not limited to secured/unsecured
redeemable Non-Convertible Debentures and/or Commercial Paper to be
issued under Private Placement basis upto Rs. 5,000 crores.

2 Approval for creation of mortgage, charge and hypothecation on all or

any of the movable and/or immovable properties, both present and future,
and/or the whole or substantially the whole of the undertaking(s) of the
Company upto Rs. 5,000 crores, for securing loan(s), debentures, bonds, or
any other type of borrowing.

3 Approval and Adoption of new Articles of Association of the Company.

4 Payment of Commission to Non-Executive Directors of the Company.

The above Meetings were held at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg (New Marine Lines), Mumbai - 400 020.
No Extraordinary General Meeting was held during the past 3 years. No Special Resolution(s) requiring a Postal Ballot was passed
last year or is being proposed at the ensuing Annual General Meeting.

Mumbai, 30 th May, 2016.

DECLARATION BY THE MANAGING DIRECTOR UNDER THE SECURITIES AND EXCHANGE BOARD OF
INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
To
The Members of Mahindra & Mahindra Limited
I, Anand G. Mahindra, Chairman & Managing Director of Mahindra & Mahindra Limited declare that all the Members of the
Board of Directors and Senior Management Personnel have affirmed compliance with the Code of Conduct for the year ended
31st March, 2016.

Anand G. Mahindra
Chairman & Managing Director
Mumbai,
30th May, 2016

Mahindra & Mahindra Limited 127

 CERTIFICATE
TO THE MEMBERS OF
MAHINDRA & MAHINDRA LIMITED

1. We have examined the compliance of conditions of Corporate Governance by Mahindra & Mahindra Limited (“the Company”),
for the year ended on 31st March 2016, as stipulated in:
• Clause 49 (excluding clause 49(VII)(E)) of the Listing Agreements of the Company with stock exchange(s) for the period
from April 01, 2015 to November 30, 2015.
• Clause 49(VII)(E) of the Listing Agreements of the Company with the stock exchange(s) for the period from April 01, 2015
to September 01, 2015.
• Regulation 23(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations)
for the period from September 02, 2015 to March 31, 2016 and
• Regulations 17 to 27 (excluding regulation 23(4)) and clauses (b) to (i) of regulation 46(2) and para C, D and E of
Schedule V of the Listing Regulations for the period from December 01, 2015 to March 31, 2016.
2. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited
to the procedures and implementation thereof, adopted by the Company for ensuring compliance with the conditions of the
Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
3. We have examined the relevant records of the Company in accordance with the Generally Accepted Auditing Standards in India,
to the extent relevant, and as per the Guidance Note on Certification of Corporate Governance issued by the Institute of the
Chartered Accountants of India.
4. In our opinion and to the best of our information and according to our examination of the relevant records and the explanations
given to us and the representations made by the Directors and the Management, we certify that the Company has complied
with the conditions of Corporate Governance as stipulated in Clause 49 of the Listing Agreement and regulation 17 to 27 and
clauses (b) to (i) of regulation 46(2) and para C, D and E of Schedule V of the Listing Regulations for the respective periods of
applicability as specified under paragraph 1 above, during the year ended March 31, 2016.
5. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the Management has conducted the affairs of the Company.

For Deloitte Haskins & Sells

Chartered Accountants
(Firm's Registration No. 117364W/W-100018)

Shyamak R. Tata
Partner
MUMBAI, 30 th May, 2016 Membership No.: 38320

128 Annual Report 2015-16

Business
Responsibility
Report
 Company Board’s Management Discussion Corporate Business Standalone Consolidated
Overview Report and Analysis Governance Responsibility Report Accounts Accounts

Business Responsibility Report

for the Financial Year 2015-16

[Pursuant to Regulation 34(2)(f) of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015]

Section A: General Information about the Company Section B: Financial Details of the Company
1. Corporate Identity Number : L65990MH1945PLC004558 1. Paid up Capital (INR) : 296.32 crores
(CIN) of the Company 2. Total Turnover (INR) : 44,461.49 crores
2. Name of the Company : Mahindra & Mahindra 3. Total profit after taxes (INR) : 3,167.48 crores
Limited 4. Total Spending on : 85.90 crores
3. Registered address : Gateway Building, Corporate Social 2.71%
Apollo Bunder, Responsibility (CSR) (INR)
Mumbai - 400 001 and as percentage of profit
after taxes (%)
4. Website : http://www.mahindra.com
5. List of activities in which a. Education
5. E-mail id : investors@mahindra.com
expenditure in 4 above has b. Health
6. Financial Year reported : 01.04.2015 to 31.03.2016
been incurred c. Green Cover
7. Sector(s) that the Company is engaged in (industrial d. Relief & Rehabilitation
activity code-wise):

Industrial Activity Code

Section C: Other Details
Description 1. Does the Company have any Subsidiary Company/
Group Class Sub-class
Companies?
Automotive 291 2910 29101, 29102, 29103,
29104, 29109 Yes. The Company has 154 Subsidiary Companies as on
Farm Equipment 282 2821 28211, 28212 31st March, 2016.

Truck and Bus 282 2824 28243 2. Do the Subsidiary Company/Companies participate in the
BR Initiatives of the Parent Company? If yes, then indicate
8. List three key products/services that the Company
the number of such Subsidiary Company(s)
manufactures/provides (as in balance sheet):
Yes. Every year the Company releases a Sustainability Report
i. Passenger Vehicles (Utility Vehicles, Multi Purpose
as per the GRI framework which is externally assured. The
Vehicles and Cars)
Company has a Code of Conduct for Employees and Directors
ii. Commercial Vehicles
as well as a set of Governance Policies. This Code is followed
iii. Tractors
by the Subsidiary Companies also with modifications
9. Total number of locations where business activity is depending on the business requirement of the entity.
undertaken by the Company: The scope of this report is defined each year. For the year
i. Number of International Locations: 0 2015-16, 19 subsidiaries have been included in the scope of
ii. Number of National Locations: 45 Sustainability Report viz. Mahindra Vehicle Manufacturers
10. Markets served by the Company – Local/State/National/ Limited, Mahindra Reva Electric Vehicles Limited, Mahindra
International: All Agri Solutions Limited, EPC Industrié Limited, Mahindra

Mahindra & Mahindra Limited 131

 Two Wheelers Limited (MTWL), Mahindra Lifespace Division (FD). As regard SD (Swaraj Division), Training &
Developers Limited, Mahindra World City Developers Awareness and Assessment of 60 suppliers (26%) have been
Limited, Mahindra World City (Jaipur) Limited, Mahindra carried out in F15-16. Another 40 Suppliers are planned for
Holidays and Resorts India Limited, Mahindra & Mahindra training & awareness in F16-17; and 40 suppliers in F18-19.
Financial Services Limited, Mahindra Rural Housing Finance The Company has signed MoU with the Institute for
Limited, Mahindra Insurance Brokers Limited, Mahindra Sustainable communities (ISC) to develop EHS Centre for
Sanyo Special Steel Private Limited, Mahindra First Choice suppliers in Pune.
Services Limited, Mahindra Intertrade Limited, Mahindra
Steel Service Centre Limited, Mahindra Logistics Limited, Similarly, majority of dealers are brought under Mahindra
Mahindra Heavy Engines Limited and Mahindra Susten Dealers’ Excellency Programme (MDEP). 245 Dealers out of
Private Limited. 295 have taken part in sustainability drive via MDEP and
this amounts to 83%.
3. Do any other entity/entities (e.g. suppliers, distributors
etc.) that the Company does business with, participate in Section D: BR Information
the BR initiatives of the Company? If yes, then indicate
1. Details of Director/Directors responsible for BR
the percentage of such entity/entities? [Less than 30%,
a. Details of the Director/Directors responsible for
30-60%, More than 60%]
implementation of the BR policy/policies
The Company has long lasting relationships with its
 DIN Number : 00254502
suppliers & dealers. A majority of supplier base has been
 Name : Dr. Pawan Kumar Goenka
already covered by conducting awareness sessions on
‘sustainability’. From F14 a special drive for awareness  Designation : Executive Director & Group
President (Auto and Farm
to suppliers has been started and we have covered 428
Sector).
suppliers. A road map for covering additional 375 suppliers
in the next 3 years has been put in place and actions are b. Details of the BR Head
already underway to cover suppliers from Mahindra Trucks Sr. Particulars Details
and Buses Division (MTBD), MTWL, Swaraj Division (SD) No.
and Construction Equipment (CE) divisions.
1. DIN Number N.A.
For enhancing skills at supplier end, focused activities drive (If applicable)
in the following areas are undertaken and organization 2. Name Mr. Rajeev Dubey
work structure for the same is in place in purchasing group.
3. Designation Group President (HR &
The areas covered are supplier business capability building
Corporate Services) & CEO
(78 suppliers), Mahindra supplier evaluation system (After-Market Sector) Member
(92 suppliers), Supply Risk Management (143 suppliers). of the Group Executive Board
Future roadmap to cover cumulatively 95 suppliers in
4. Telephone +9122 24975192
supplier business capability building, 100 suppliers in
Number +9122 24901441 Extn. 5594
Mahindra supplier evaluation system, 200 suppliers
5. E-mail ID DUBEY.RAJEEV@mahindra.com
in Supply Risk Management in F17 has been put in place.
About 375 suppliers have actively participated in annual
2. Principle-wise (as per NVGs) BR Policy/policies
supplier meets this year.
(Reply in Y/N)
In F16 “Msetu” an IT platform was launched through The Business Responsibility Policy (“BR Policy”) addressing
which technology has been leveraged to interact with the following 9 principles as per the National Voluntary
supplier partners. More than 80% suppliers are currently Guidelines on Social, Environmental and Economic
live on this platform. Responsibilities of Business (NVGs), duly approved by Board,
The percentage of entities covered is between 30 to 60% is in place. This policy is operationalized and supported by
for suppliers for the Automotive Division (AD) & Farm various other policies, guidelines and manuals.

132 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Standalone Consolidated
Overview Report and Analysis Governance Responsibility Report Accounts Accounts

P1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
P2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.
P3: Businesses should promote the wellbeing of all employees.
P4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalized.
P5: Businesses should respect and promote human rights.
P6: Businesses should respect, protect, and make efforts to restore the environment.
P7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
P8: Businesses should support inclusive growth and equitable development.
P9: Businesses should engage with and provide value to their customers and consumers in a responsible manner.
P1: P2: P3: P4: P5: P6: P7: P8: P9:
Sr. Ethics Product Wellbeing Responsiveness Respect Environ- Public Support Engagement
Questions
No. and Responsibility of to Human mental policy inclusive with
Transparency employees Stakeholders Rights Responsibility advocacy growth Customers

1. Do you have a policy/policies for.... Y Y Y Y Y Y Y Y Y

Note 1

2. Has the policy being formulated in Y Y Y Y Y Y Y N Y

Note 2
consultation with the relevant stakeholders?
3. Does the policy conform to any national/ Y Y Y Y Y Y NA Y Y
Note 3
international standards? If yes, specify?
(50 words)
4. Has the policy being approved by the Board? Y Y Y Y Y Y Y Y Y
If yes, has it been signed by MD/owner/
CEO/appropriate Board Director?
5. Does the Company have a specified Y Y Y Y Y Y Y Y Y
committee of the Board/Director/Official to
oversee the implementation of the policy?
6. Indicate the link for the policy to be viewed Y Y Y Y Y Y Y Y Y
Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4
online?
7. Has the policy been formally communicated Y Y Y Y Y Y Y Y Y
to all relevant internal and external
stakeholders?
8. Does the Company have in-house structure Y Y Y Y Y Y Y Y Y
to implement the policy/policies.
9. Does the Company have a grievance redressal Y Y Y Y Y Y NA Y Y
Note 5 Note 3
mechanism related to the policy/policies
to address stakeholders’ grievances related
to the policy/policies?
10. Has the Company carried out independent Y Y Y Y Y Y Y Y Y
audit/evaluation of the working of this policy
by an internal or external agency?
Note 1 – The Company complies with consumers’ awareness through appropriate product labelling and operator manual & instructions which ensure safe usage
by the customer. However, Company’s current control is limited till warranty period. The Company is in the process of addressing this by appropriate
communication to all value chain members for their responsibilities.
Note 2 – While there is no formal consultation with all stakeholders, the relevant policies have evolved over a period of time by taking inputs from concerned
internal stakeholders.
Note 3 – This question is not applicable for influencing public and regulatory policy.
Note 4 – It has been Company’s practice to upload all policies on the intranet site for the information and implementation by the internal stakeholders.
The Code of Conduct for Directors, the Code of Conduct for All Employees, Business Responsibility Policy and CSR Policy are available on the website
http://www.mahindra.com/resources/investor-reports/FY16/Annual Reports/Links-AnnualReport.zip
Note 5 – The Company has a “Whistleblower Policy” to address human rights grievances. There is a Corporate Governance Cell where these issues are dealt with.

Mahindra & Mahindra Limited 133

3. Governance Related to BR Principle 2: Businesses should provide goods and services that
 Indicate the frequency with which the Board of are safe and contribute to sustainability throughout their
Directors, Committee of the Board or CEO meet to life cycle
assess the BR performance of the Company. Within
3 months, 3-6 months, Annually, More than 1 year: 1. List up to 3 of your products or services whose design has
incorporated social or environmental concerns, risks and/
The CSR Committee of the Board meets at an interval
or opportunities.
of every 6 months to assess the BR performance. Other
supporting councils/cells viz. Group Sustainability Product Social & environmental benefits
Council, Group CSR Council, Central Safety Council and
Corporate Governance Cell meet every 3 months. 1. Passenger Vehicles
 Does the Company publish a BR or a Sustainability & LCV:AD
Report? What is the hyperlink for viewing this report?
How frequently it is published? A) Passenger Vehicles KUV 1OO
Mahindra Group Sustainability Report as per the GRI (UV/ MPV/ Cars) KUV 1OO launched with new M
framework is published annually. All Sustainability Falcon engine family series giving
Reports from 2007-08 till 2014-15 are GRI compliant Fuel efficiency of 25.32 km/l in
and are accessible on the Company website at the diesel and 18.15 km/l in Petrol. The
hyperlink (http://www.mahindra.com/How-We-Help/ vehicle has technological features
Environment/Sustainability). The Sustainability Report such as Start stop system, Power/
for 2015-16 is under preparation and will be uploaded Eco mode, Superior suspension with
on the website of the Company in due course of time. Monocoque construction. For safety
it has Dual airbags, Automatic hazard
Section E: Principle-wise performance light on Panic braking, Anti slip clips
for driver floor mats and ABS across
Principle 1: Businesses should conduct and govern themselves all variants.
with Ethics, Transparency and Accountability
1. Does the policy relating to ethics, bribery and corruption TUV 3OO
cover only the Company? Yes/No. Does it extend to the 3rd Generation Chassis for Ride &
Group/Joint Ventures/Suppliers/Contractors/NGOs/Others? Handling, Voice messaging system,
The Company has defined Code of Conduct for Directors Intellipark reverse assist, Micro
as well as all employees of the Company that covers Hybrid technology, Highest safety
issues, inter alia, related to ethics and bribery. It covers rating in the Proposed Bharat New
all dealings with suppliers, customers and other business vehicle safety Assessment programme
partners including Joint Ventures, and other stakeholders. (BNVSAP), High strength steel for
body for Impact protection, Frontal
2. How many stakeholder complaints have been received Crash sensors, ABS with EBD.
in the past financial year and what percentage was
satisfactorily resolved by the management? If so, provide SUPRO
details thereof, in about 50 words or so. Fuel smart technology with a superior
During the reporting year, 19 complaints were received mileage of 23.5 km/l, Dual LSPV
from the shareholders, all of which were attended to/ brakes during sudden braking, Child
resolved till date. An individual who is a shareholder lock for safety.
and former employee whose services with the
Company were terminated in the year 1991 on proven XUV 5OO
misconduct frequently writes to the Company, alleging The new XUV refresh comes with
mismanagement of the affairs of the Company, violations micro hybrid technology, airbags, and
of various statutory provisions as also about his allegedly powerful projector headlights along
unjust termination from the services of the Company. The with light guides and ABS along with
Company has replied to all his allegations. The Company EBD, Touchscreen display integrated
has filed a Criminal Contempt Petition No. 1 of 2015 infotainment system along with GPS,
against him in the High Court of Judicature of Bombay. Bluetooth, USB, iPod connectivity,
The High Court has directed him to file reply to the hands-free calling, configurable
Contempt Petition. The reply filed, if any, by him has not wallpaper and picture viewer.
been served on the Company. The emission norms have been
The Company has different mechanisms for receiving and achieved for Euro 6 for Europe &
dealing with complaints from various stakeholders like Chile export application.
Investors, Customers, Employees, and Suppliers, etc.

134 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Standalone Consolidated
Overview Report and Analysis Governance Responsibility Report Accounts Accounts

3. Tractors: SD 724 & 834 Models

B) Light Commercial JEETO
The improved transmission housing
Vehicles Single Cylinder m-DURA Engine on these 2 models has resulted in
was developed to power the JEETO reduction of 17kg of cast iron and
vehicle for domestic market to deliver 12 litres of fossil oil per tractor.
10% higher peak power and 15%
Separate oil reservoir for power
better Peak Torque with best in class
steering resulting in reduction of
fuel economy and with semi forward
2 litres of fossil oil.
design for safety, Imperio. Engine
immobiliser for theft safety, ELR seat All models: Copper brass radiator
belt for enhanced safety, brake with has been replaced with Aluminum
LSPV (Load sensing proportioning radiator which requires less energy
valve), Fuel Smart technology to to produce & consequently lesser CO2
choose between power and fuel emission.
economy. Hand throttle with reduced effort
(from 6.3 kg to 3.4 kg) on all models.
Reduced clutch operation effort on
2. Tractors: FD Arjun NOVO all DC models (from 26 kg to 19 kg)
Launched with NOVO engine of high on all models.
cubic capacity of 3531 CC along with
optimized rated speed of 2100 rpm 2. For each such product, provide the following details in
and inline fuelling pump under 52-57 respect of resource use (energy, water, raw material etc.)
HP range. Synchromesh transmission per unit of product (optional):
with 15 forward +3 reverse gear
i. Reduction during sourcing/production/distribution
system suitable for agri, CE & Special
achieved since the previous year throughout the
applications, and multispeed PTO
option resulting into increased
value chain?
fuel efficiency & productivity. For the above mentioned products, there is no
Improved fast response hydraulics explicit tracking mechanism in respect of resource
with higher lift capacity & quick use. However, the resource use for entire portfolio is
lifting & lowering, improved clutch. tracked and monitored. Since the products portfolio is
Available in both 2WD & 4WD heavy distributed across various manufacturing locations of
duty axle resulting into customer the Company, the resource use is monitored per unit of
satisfaction. equivalent vehicle or equivalent tractor manufactured.
Arjun NOVO is also available with The performance for current and previous year on
synchro-shuttle option as per Specific Energy Consumption, GHG Emissions and
customer requirement 415 DI- Kheti Specific Water Consumption during production is
ka Boss Launched in 38-40 HP appended below, which is reported in the Group
segment, redesigned engine to Sustainability Reports for the Financial Years 2014-15
deliver higher torque for better and 2015-16:
performance; also the highest
Resource Use Divisions Unit of Current Previous
lift capacity, transmission with
Measurement Year Year
new gear speeds to address key 2015-16 2014-15
customer requirement in rotavation GJ/Equivalent
and puddling applications, best in Automotive 2.249 2.264
Vehicles
class PTO power of 36 HP giving Specific Energy
Consumption Farm Division GJ/Equivalent
customer delight. (Including Tractors 1.458 1.467
Swaraj)
Mahindra 555 Power plus:- kamaal tCO2 /Equivalent
ki keemat par Launched in 57 HP Specific Green Automotive 0.336 0.343
Vehicles
House Gas
segment, with powerful Engine, Farm Division tCO2 /Equivalent
Emissions
8 Forward & 2 reverse speed, Higher (Scope 1 and 2) (Including Tractors 0.227 0.232
lift capacity, reverse PTO operation, Swaraj)
KL/Equivalent
appropriate speed for reaping Automotive 2.313 2.441
Vehicles
operation resulting in value for Specific Water
Farm Division KL/Equivalent
money product. Consumption
(Including Tractors 1.517 1.691
Swaraj)

Mahindra & Mahindra Limited 135

 ii. Reduction during usage by consumers (energy, water) 4. Has the Company taken any steps to procure goods
has been achieved since the previous year? and services from local & small producers, including
Due to constant innovations and focus on fuel communities surrounding their place of work? If yes,
efficiency, there would be a reduction of energy use what steps have been taken to improve their capacity and
by consumers. However, tracking of such reduction is capability of local and small vendors?
not possible as it is highly dependent on individual Yes. The Company has a practice of purchasing goods
customers’ driving habits. and services from local suppliers. The Company does
not have any small suppliers where the owner himself
3. Does the Company have procedures in place for or herself is a worker. The Company has multiple plants
sustainable sourcing (including transportation)? If spread across West, South and North of India. The major
yes, what percentage of your inputs was sourced factors influencing selection of suppliers across these
sustainably? Also, provide details thereof, in about regions are:
50 words or so.
 Capability, performance and on-time delivery.
The Company has been working to enhance the degree
 Compliance on environment, health & safety
of sustainability associated with its sourcing practices
guidelines.
under the umbrella of “ONE SOURCING”. This includes
strategy of one supplier per platform and common  Readiness to participate in sustainable supply chain
supplier basket for multiple businesses, setting up of management program.
vendor parks at its new plants, sourcing from tightly knit  Total cost.
clusters, optimizing logistics to reduce fuel consumption, The purchasing group has a standard practice of sharing
emissions and carbon footprint, re-working packaging to its annual plans and next two year’s tentative plans with
minimize waste and maximize re-use. The Sustainability its key suppliers through communication meets and
road map of the Company covers these areas and the supplier business reviews. These suppliers are provided
Company takes steps to ensure that its sourcing methods with managerial and technical assistance to train them on
are sustainable. practices and procedures that will ensure improvements
Suppliers related to machining & proprietary have been in Productivity, Quality, Cost, Delivery, Safety and Moral
involved to make logistic sustainable & trying to use (PQCDSM). This is done by initiatives like Supplier Business
returnable bins in place of wooden & corrugated boxes Capability Building (SBCB), Mahindra Supplier Evaluation
as an alternate source. Almost the entire sourcing work System (MSES), Technical Capability Building programs,
is done from the country with a very small percentage of Supply Risk Management (SRM), Safety Training &
input being procured from overseas. assessments and technical support for special processes
The Company has Green Supply Chain Management Policy, during new product developments, Associate Value
which has been shared with all suppliers, under which, Specialist Program, etc. The Company has special focus
the Company is committed to improve the awareness with on creating supplier parks near the plants for e.g. Chakan
regard to legal compliances, enhance eco-efficiencies, Supplier Park and Zaheerabad Supplier Park. The Company
employee health and safety initiatives, etc. at supplier end has a focus on buying from local suppliers, geographically
through initiatives such as Supplier Business Capability nearest to the Company’s manufacturing facility.
Building (SBCB), Mahindra Supplier Evaluation System
5. Does the Company have a mechanism to recycle products
(MSES), Mass Manufacturing Approval (MMA) & Supply
and waste? If yes what is the percentage of recycling
Risk Management (SRM). Continuous engagement with
of products and waste (separately as <5%, 5-10%,
suppliers is ensured through supplier meets, business
>10%). Also, provide details thereof, in about 50 words
reviews, and training sessions. To motivate the suppliers
or so.
to take the Sustainability agenda forward, good
practices are recognized, by institutionalizing “Annual It is the Company’s ongoing endeavor to have a mechanism
Sustainability Award”. to recycle our products and limit the waste arising out

136 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Standalone Consolidated
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of production of vehicles and tractors. The Company 6. What percentage of your permanent employees is
has initiated well documented processes to ensure members of this recognized employee association? 94%
compliance with the European Union Directive 2005/64/ 7. Please indicate the Number of complaints relating to child
EC which is now implemented for the vehicles exported labor, forced labor, involuntary labor, sexual harassment in
to the European Union. Our objective is to restrict the the last financial year and pending, as on the end of the
amount of waste produced from End of Life of vehicles financial year.
(ELVs) and increase the recovery and recycling of ELVs that
arise. The information on recyclable parts and manual for Sr. Category No. of No. of
No. complaints complaints
dismantling is provided with export vehicles. We follow filed during pending as
the financial on end of
the ISO 22628:2002, to calculate the recyclability rate, the
year the financial
recoverability rate and reusability rate (RRR) of our export year
vehicles. We have 1 of our UV variants as new certification 1. Child labor/forced labor/involuntary Nil Nil
and 2 models are under the recertification process to comply labor

with the European Union Directive 2005/64/EC norms 2. Sexual harassment 4 Nil
on recyclability. Our Company is actively participating in 3. Discriminatory employment Nil Nil
the committee formed by Society of Indian Automotive
Manufacturers (SIAM) to frame process and procedure 8. What percentage of your under mentioned employees
for Product Recycling in India. At present, the batteries were given safety & skill up-gradation training in the
used in vehicles are recycled in a structured manner last year?
through the battery manufacturing companies in India.  Permanent Employees: 88%
Similarly other parts such as tyres, body components, etc.  Permanent Women Employees: 76.20%
are recycled in an unstructured manner through licensed  Casual/Temporary/Contractual Employees: 81.88%
scrap dealers who either recover the material used or
 Employees with Disabilities: 68.42%
cannibalize/refurbish the parts for reuse.
Principle 4: Businesses should respect the interests of, and be
A simplified LCA is done in the form of compliance responsive towards all stakeholders, especially those who are
with ELV directive for European M1 & N1 products. The disadvantaged, vulnerable and marginalized.
vehicles are exported and certified as per EEC directive
1. Has the company mapped its internal and external
2005/64/ EC. The CO2 emissions are evaluated during
stakeholders? Yes/No
the type approval test at the government approved test
agencies and this data is used to assess the CO2 impact Yes
of products. We have completed an experimental project 2. Out of the above, has the company identified the
to evaluate Full LCA during 2016. For this study one disadvantaged, vulnerable & marginalized stakeholders?
UV pickup model (BMT) was considered for full LCA. Yes

Principle 3: Businesses should promote the wellbeing of all 3. Are there any special initiatives taken by the company
employees to engage with the disadvantaged, vulnerable and
marginalized stakeholders? If so, provide details thereof,
1. Please indicate the Total number of employees: 39,276 in about 50 words or so.
2. Please indicate the Total number of employees hired on
Your Company has designed products specifically
temporary/contractual/casual basis: 19,176
for improving the livelihood and encouraging
3. Please indicate the Number of permanent women entrepreneurship amongst rural and semi-urban persons
employees: 626 through low cost products. Moreover, in the Farm
4. Please indicate the Number of permanent employees with Equipment business vertical, there is a conscious move from
disabilities: 38 Tractor manufacturing to ‘Farm Tech Prosperity’ where
5. Do you have an employee association that is recognized by various products and services are designed to improve
management: Yes farm productivity especially among small & marginalized

Mahindra & Mahindra Limited 137

 farmers. The Integrated Watershed Management projects through which all types of grievances are redressed.
at Damoh being implemented in Public-Private-Partnership Additionally, Employee Satisfaction Survey for workmen is
(PPP) with the Govt. of Madhya Pradesh are in advanced periodically carried out and all low scoring responses are
stage of completion and two other projects are in progress discussed in Focused Group Meetings and duly resolved.
in the catchment area of the Bhopal Lake. The project at Although there is no process to separately maintain
Damoh covers 9,660 hectares and 4,000 households in records for grievances related to Human Rights, the above
32 villages with a population of 20,000. The work done stated mechanism adequately addresses this issue. There
includes 65 check dams and masonry outlets, 68 farm ponds is a mechanism for all employees of Automotive and Farm
and percolation tanks, more than 17,000 stone bunds, Sectors to voice their concerns to the Sector President
outlets gully plugs and gabion structures, more than 67 through a ‘Reach-out’ mailbox which is addressed with
km. of contour trenches and 287 km. of field bunds. In confidentiality.
addition, 65 defunct structures have been rejuvenated.
This has resulted in 1,812 million litres of incremental rain Principle 6: Business should respect, protect, and make efforts
water harvesting capacity, 1,772 ha. of land provided with to restore the environment
supplemental irrigation and 143 ha. of additional land 1. Does the policy related to Principle 6 cover only the
brought under cultivation. 4,071 farmers have benefitted company or extends to the Group/Joint Ventures/Suppliers/
from soil and water conservation, multiple cropping has Contractors/NGOs/others.
become prevalent and three crops are being grown on The Company has various policies related to environmental
more than 140 ha. of land. Area under vegetables has protection. The Green Supply Chain Management Policy
increased almost 30 times, area under sprinkler irrigation includes environment protection and covers suppliers. The
has increased more than 3 times. Almost 400 SHGs, almost subsidiaries/Joint Ventures have their own policies which
all women, are engaged in micro-enterprises of various are in sync with the Company’s environmental policies.
kinds. Consequently daily per capita income has more
2. Does the company have strategies/ initiatives to address
than doubled. Further details of community development
global environmental issues such as climate change,
initiatives are given in Principle 8.
global warming, etc? Y/N. If yes, please give hyperlink for
Principle 5: Businesses should respect and promote human
webpage etc.
rights
Yes.
1. Does the policy of the company on human rights cover
Mr. Anand G. Mahindra, Chairman and Managing Director,
only the company or extend to the Group/Joint Ventures/
was invited as a member on Carbon Pricing Leadership
Suppliers/Contractors/NGOs/Others?
Coalition (CPLC) at the signing of Paris Agreement
The Business Responsibility Policy covers the aspects on
with Heads of State at United Nations Headquarter. He
Human Rights for the Company. Human Rights issues are a
represented the Corporates worldwide and spoke about the
part of the supplier selection process and are also included
importance of climate change and renewable energy. Senior
in the contracts drawn up with them. The Company has put
executives of the Company represented Corporate India
in place a Whistleblower Helpline managed by an external
in COP 21 that gave international branding opportunity
agency to ensure that any violations to its Code of Conduct
through media interactions. The Chairman of Group
(including violation of Human rights) are addressed
Sustainability Council, Mr. Ulhas Yargop represented the
objectively.
Mahindra Group at the CPLC Inaugural High-level assembly
2. How many stakeholder complaints have been received in meeting at Washington DC. Other attendees included Ban
the past financial year and what percent was satisfactorily ki-Moon (UN Sec. Gen.), Christine Lagarde (MD – IMF). The
resolved by the management? Company also hosted a high-level workshop on Carbon
No complaints have till date been received through the Pricing in association with WRI and CDP that comprised of
Whistleblower Helpline. delegates from Yale University, EDF, Total, World Bank etc.
There is an active and a well-defined four step Grievance along with 50+ leading Indian business practitioners and
Redressal Machinery available at each plant for workmen Group companies.

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The Company has signed Energy Productivity Commitment 4. Does the company have any project related to Clean
– EP100 with The Climate Group and has the distinction Development Mechanism? If so, provide details thereof,
of being the first Company to sign this. The Company is in about 50 words or so. Also, if Yes, whether any
also a signatory for India Business Biodiversity Initiative environmental compliance report is filed?
(IBBI). Other strategies and initiatives are elaborated in the Yes. The name of the CDM – PoA 9731: Energy Efficiency
Company’s GRI reports since 2007-08 which are available on through Micro irrigation system – India. The Registered
the Company website http://www.mahindra.com/resources/ Program of Activities (PoA) aims at encouraging energy
pdf/sustainability/Sustainability%20Report%202014-15.pdf efficiency through installation of efficient irrigation
Targets taken in Sustainability Roadmap relate to energy system such as drip and sprinkler irrigation replacing the
conservation, GHG reduction and water conservation. These conventional flood method of irrigation resulting in GHG
strategies and initiatives are also aligned to the National Emission reduction & Water Conservation. It was registered
Action Plan on Climate Change. The strategies and new in September 2013.
initiatives continue year on year. In the current reporting For more details refer https://cdm.unfccc.int/
year, various initiatives on energy saving, water saving, ProgrammeOfActivities/poa_db/4Z28CN6S0DEB5F1PLIXAY9
waste reduction etc. were implemented. An indicative list W3GMRUOQ/view.
in this regard is appended below and complete details
5. Has the Company undertaken any other initiatives on –
will be available in the Sustainability Report for the Financial
clean technology, energy efficiency, renewable energy,
Year 2015-16.
etc? Y/N. If yes, please give hyperlink for web page etc.
Energy Savings:
Yes. Same as stated under point 2 above.
 Demand Controller for air compressor to reduce
6. Are the Emissions/Waste generated by the company within
electrical consumption.
the permissible limits given by CPCB/SPCB for the financial
 Recovering waste heat from furnace / oven and reusing
year being reported?
in the process application.
Yes
 Energy efficient lighting system.
7. Number of show cause/legal notices received from CPCB/
Water Saving: SPCB which are pending (i.e. not resolved to satisfaction)
 Use of STP/ETP treated water for flushing and as on end of Financial Year.
gardening. Nil
 Roof and Surface Rain Water Harvesting to reduce
Principle 7: Businesses, when engaged in influencing public and
withdrawal of water.
regulatory policy, should do so in a responsible manner
 Retrofitting with water saving equipment’s like auto
1. Is your company a member of any trade and chamber or
control valves, level controllers.
association? If Yes, Name only those major ones that your
Waste Reduction: business deals with:
 Use of metal, wooden and rubber scrap to make Yes. The Company is a member of following trade and
furniture. chamber or association (in alphabetical order):
 Packaging waste is reduced by using plastic boxes in a. The Associated Chambers of Commerce and Industry
place of corrugated boxes. of India (ASSOCHAM), b. Bombay Chamber of Commerce
 Reduce paint sludge by technology upgradation, and Industry (BCCI), c. Confederation of Indian Industry
dewatering by use of gunny bags and processing to (CII), d. Employers’ Federation of India (EFI), e. Federation
sludge powder. of Indian Chambers of Commerce & Industry (FICCI),
3. Does the company identify and assess potential f. Indian Merchants Chambers (IMC), g. National Human
environmental risks? Y/N Resource Development Network (NHRDN), h. Society of
Indian Automobile Manufacturers (SIAM), i. The Energy
Yes, the Company has a mechanism to identify and assess
and Resource Institute (TERI), j. Tractor Manufacturer’s
potential environmental risks across all locations.
Association (TMA).

Mahindra & Mahindra Limited 139

2. Have you advocated/lobbied through above associations c. Lifeline Express – A Mobile hospital on a train,
for the advancement or improvement of public good? providing medical interventions and surgeries often in
Yes/No; if yes specify the broad areas (drop box: remote rural areas.
Governance and Administration, Economic Reforms, d. Mahindra Hariyali – Afforestation initiative to improve
Inclusive Development Policies, Energy security, Water, green cover & protect bio-diversity in the country and
Food Security, Sustainable Business Principles, Others). also contribute to the livelihood of farmers.
The Company participates as a stakeholder of SIAM and
e. Swachh Bharat Swachh Vidyalaya – Maintenance of
TMA on policies related to Automotive and Tractor Industry,
4,340 toilets constructed in F15, primarily for girls in
Sustainable Mobility and Farm Tech Prosperity, Economic
government schools, under the Government’s Swachh
Reforms, Sustainable Business Principles (Sustainable Supply
Bharat Swachh Vidyalaya Program. In addition, training
Chain Management) and Vehicle Recall policy. The Company
programmes were carried out to bring about attitudinal
also contributes through Confederation of Indian Industry/
and behavioural changes in the girls, parents and
Bombay Chamber of Commerce and Industry, when views
school authorities.
are solicited on matters such as Securities Law, Corporate
f. Integrated Watershed Development Project – A public
Laws, etc.
private partnership with the government of Madhya
Principle 8: Businesses should support inclusive growth and Pradesh for conservation of soil and water.
equitable development
g. Mahindra Saarthi Abhiyaan – Scholarships to
1. Does the company have specified programmes/initiatives/ daughters of truck drivers which allows them to pursue
projects in pursuit of the policy related to Principle 8? higher education thus reducing drop outs amongst
If yes details thereof. girls.
Yes. Since its inception Mahindra & Mahindra Ltd. has been h. Krishi Mitra – Improving livelihood opportunities and
a socially responsible corporate making investments in the prosperity of farmers by training them in effective
community which go beyond any mandatory legal & statutory farming practices including soil health, crop planning,
requirements. The CSR vision of the Company is to focus creating model farms with bio-dynamic farming
efforts within the constituencies of girls, youth & farmers by practices etc., thereby increasing crop productivity.
innovatively supporting them through programs designed i. Bio Gas Project – Setting up a biogas plant to convert
in the domains of education, health and environment, food waste and other waste into energy.
while harnessing the power of technology. By investing our
j. BAJA – Training under graduate engineering students
CSR efforts in these critical constituencies who contribute
in automotive engineering enabling them to get jobs
to nation building and the economy, we will enable our
in the automobile industry.
stakeholders and communities to RISE. In accordance with
the Companies Act, 2013, Mahindra & Mahindra Ltd. has Employee Social Options (ESOPs): The Company’s ESOPs
committed 2% (PBT) towards CSR initiatives. Further the programme supports employees in creating volunteering
unique Employee Social Options (ESOPs) platform provides projects based on the needs of underprivileged communities
employees a menu of volunteering opportunities enabling in and around their places of work.
them to participate actively in the Company’s CSR initiatives. 2. Are the programmes/projects undertaken through in-
Some of the major initiatives the Company has invested in house team/own foundation/external NGO/government
the last financial year (F16) are as follows: structures/any other organization?
a. Project Nanhi Kali – Provision of educational CSR initiatives are implemented either directly by the
support to underprivileged girls from poor urban, Company through its ESOPs structure where the Mahindra
remote rural and conflict afflicted communities across employees directly implement the CSR programmes or
India. through implementing partners which include NGOs having
b. Mahindra Pride School – Livelihood training an established track record of at least 3 years in carrying on
programme for youth from socially and economically the specific activity. The main implementation partners the
disadvantaged groups. Company works with are the Mahindra Foundation, The

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K. C. Mahindra Education Trust, Tech Mahindra Foundation constructed for the community. This financial year
and Naandi Foundation. (F16) the Company conducted training programmes
3. Have you done any impact assessment of your initiative? for the girls, parents, community & school authorities
aimed to bring about attitudinal and behavioural
In F16 the following impact assessment studies were
changes on issues of health and sanitation. The
undertaken:
goal of these training programs is to ensure that
(a) 3rd party assessment of Project Nanhi Kali by three the community takes over the management of
independent evaluators. the toilets in the long run and ensures that they
(b) Project Hariyali was audited by BNHS for the tree remain functional.
plantation drive Pan India.
(c) INTEGRATED WATERSHED MANAGEMENT PROJECT –
4. What is your company’s direct contribution to community The Project which is a PPP has over 5 years, through
development projects – Amount in INR and the details of constant engagement with the community succeeded in
the projects undertaken? building structures that encourage water conservation.
This has resulted in 1,812 million litres of incremental
The Company’s contribution to community development
rain water being saved and the ground water table
projects amounts to Rs. 85.90 crores during the Financial
has increased by 30%. All the water conservation,
Year 2015-16. Details of some of the major initiatives the
management practices and livelihood initiatives
Company has invested in the last financial year (F16) are
have now been adopted by the villagers, and the
given in Point 1 above.
village level committees and SHGs are running them
5. Have you taken steps to ensure that this community independently.
development initiative is successfully adopted by the
Principle 9: Businesses should engage with and provide
community? Please explain in 50 words, or so.
value to their customers and consumers in a responsible
Where we implement CSR projects, we ensure that the manner
initiative is successfully adopted by the community. Below
1. What percentage of customer complaints/consumer cases
are three examples of the same:
are pending as on the end of financial year.
(a) PROJECT NANHI KALI provided academic and Customer complaints are treated very seriously in the
material support to over 1,20,000 underprivileged organization. We hear our customers through various
girls across 10 states in F16. Of these 14,918 girls were mediums such as emails to customercare@mahindra.
supported by M&M Ltd, while the Mahindra Group com, With You Hamesha 24X7 Call centre toll free no,
as a whole supported 53,049 girls. The balance girls websites, tweet handle, telephone, letter, fax etc. The
are supported by other corporates & individuals. status of pending complaints/cases as on 31st March, 2016 is
When the project is introduced in a new area, we as follows:
ensure that a ‘Village Education Committee’ is set up
Automotive Farm Division Total
who are then sensitised on the importance of girls
Division (Including
education in particular, and other gender related Swaraj)
issues. One of the metrics we monitor, is school Percentage of Consumer 37.01% 39.85% 37.67%
attendance of girls & we have found that in the areas Cases Pending as on
31st March 2016
where we have set up project Nanhi Kali girls attend
school regularly.
Pending Customer complaints AD – 2016
(b) SWACHH BHARAT SWACHH VIDYALAYA – The Receiving Total Open Close Open Close
Period Complaints % %
Company constructed 4,340 toilets pan India Registered
primarily for girls in government schools under the in this
period
Swachh Bharat Swachh Vidyalaya Programme, in F15.
F12-F16 243646 1980 241666 0.81% 99.19%
Further, a large number of public toilets were also

Mahindra & Mahindra Limited 141

 Receiving Total Open Close Open Close Description of the matters pending under the Competition
Period Complaints % % Act, 2002:
Registered
in this 1. Shamsher Kataria- Case No. 3/2011: Based on the information
period
given by the Informant Shamsher Kataria against 3 car
F16 62179 1980 60199 3.18% 96.82%
manufacturers, Honourable Competition Commission
Pending Customer complaints FD – 2016 of India (CCI) had started investigation in respect of 17
car manufacturers about the non-availability of spare
Receiving Total Open Close Open Closed
Period Complaints % % parts in the open market. One of the allegations is OEMs
Registered are restricting the availability of spare parts in the open
in this
period market other than their own distribution network resulting
F11-F16 82174 38 82136 0.05% 99.95% in high prices of the said spare parts and the said spare
parts not being available to the independent car repairers.
Receiving Total Open Close Open Close The DG had initiated the investigation in which we had
Period Complaints % % submitted the detailed information as sought by the DG.
Registered
in this Thereafter the DG submitted a report and based on the
period said report, the Commission had issued notices to the 17
F16 11027 38 10989 0.3% 99.7% car manufacturers to file their respective responses on
the said report. Accordingly, we had filed our reply to the
Pending Customer complaints SD – 2016
said report along with all possible supporting documents.
Receiving Total Open Close Open Close Thereafter, the matter was heard by the CCI and on August
Period Complaints % %
Registered 25, 2014 CCI passed an order (“Order”) against fourteen
in this
period
Automobile companies including Mahindra & Mahindra
(M&M) Limited and has imposed a penalty of Rs. 292.25
F11-F16 683 668 15 2% 98%
crores amounting to 2% of the average annual turnover
Receiving Total Open Close Open Close for the years 2007-08, 2008-09 and 2009-10. M&M vide a
Period Complaints % % Writ Petition W.P.(C) 6610/2014 (“W.P”) filed before the
Registered
in this Hon’ble Delhi High Court (“HC”) has challenged the vires
period of certain sections of the Competition Act, 2002 based
F16 306 291 15 5% 95% on which penalty has been calculated and also the Order
2. Does the company display product information on the has been passed by the CCI. The Hon’ble HC was pleased
product label, over and above what is mandated as per to grant a stay on the operation of the Order and the
local laws? Yes/No/N.A. /Remarks (additional information) matter is presently being heard by the HC and reserved
for orders.
Yes. In addition to mandatory requirements, the Company
also provides service and safety labels as deemed 2. Mohd Ekram Khan – Auto sector dealer from Lucknow
appropriate. e.g.: Product fuel economy data displayed for has filed petition No 106/2008 (before MRTP Commission
each variant at selling points (Dealership). transferred to Competition Appellate Tribunal) for unfair
3. Is there any case filed by any stakeholder against the trade practice under Section 36A, 36B, 36C, 36D and
company regarding unfair trade practices, irresponsible Section 37 of the MRTP Act, 1969; (ii) compensation
advertising and/or anti-competitive behavior during the petition under Section 12 B of the MRTP Act, 1969., alleging
last five years and pending as on end of financial year. If that resignation is taken forcibly and fraudulently by M&M
so, provide details thereof, in about 50 words or so. and for creating monopoly for newly appointed dealer
who has mafia background and does not have required
Yes. The Company has been impleaded in the below
infrastructure and claimed compensation.
listed proceedings that allege violation of provisions of
the Competition/MRTP Act. The Company is vigorously The Applicant has quantified his claims under various
defending itself in these proceedings. heads viz., sales promotional claim for 05-06, 06-07 at

142 Annual Report 2015-16

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Rs. 11,78,905/-; amounts due towards warranty claims, free Mahindra Limited, even in case of loss in the matter may
servicing and wrongly debited warranty at Rs. 4,84,760/; come down heavily.
idle wages to employees and electricity bills etc at Currently, listed for hearing on 12th July 2016.
Rs. 13,88,000/-. The aforesaid claims as alleged amount to
Rs. 30,51,665/-. For each of the above heads, interest @ 4. Did your company carry out any consumer survey/
18% p.a. has been claimed. In addition to the above, the consumer satisfaction trends?
Applicant has also claimed expenditure on construction of Yes, through
workshop at Rs. 1,07,88,536/- along with penal interest of  J. D. Power survey for Automobiles
Rs. 2,50,000/- plus interest @ 18% p.a. Over and above the  MQRS survey for load carriers
purported claims as quantified by the Applicant he has also
 TNS Survey for Tractors and Trucks
made further vague assertions seeking compensation of
 Brand Track Study
Rs. 25 crores towards alleged loss and litigation expenses
of Rs. 50,000/. However, the Hon’ble COMPAT has now  CaPS Study
restricted the scope of the application only to non-grant  CSAT (Customer Satisfaction) Study for commercial
of Scorpio dealership. Hence, the liability on Mahindra & range of vehicles

Mahindra & Mahindra Limited 143

Financial Position at a Glance
Rupees crores
As per Schedule III As per Revised Schedule VI of As per Old Schedule VI of
of The Companies The Companies Act, 1956 The Companies Act, 1956
Act, 2013

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Net Fixed Assets 9518 8108 7105 5821 5088 3904 3703 3214 2361 1871

Investments 13520 13138 11380 11834 10297 8913 6398 5786 4215 2238

Foreign Currency
Monetary Item
Translation Difference
Account Asset/(Liability) — — — — — — (3) 18 — —

Inventories 2688 2438 2804 2420 2358 1694 1189 1061 1084 878

Trade Receivable/
Debtors 2512 2558 2510 2208 1929 1260 1258 1044 1005 701

Other Non Current/

Current Assets 8174 6703 7490 5171 4098 3753 3599 2959 1555 2169

Misc. Expenditure not

written off — — — — — — — 13 14 18

Borrowings 1844 2620 3745 3227 3174 2321 2880 4053 2587 1636

Long Term/Current
Liabilities and Provisions 11614 10090 9863 8953 7964 6535 5197 4798 3240 2666

Deferred Tax Liabilities/

(Assets) (Net) 1248 980 890 615 527 355 240 (18) 57 20

Equity Capital 296 296 295 295 295 294 283 273 239 238

Reserves and Surplus 21411 18959 16496 14364 11810 10019 7544 4989 4111 3315

Net Worth 21707 19255 16791 14659 12105 10313 7827 5262 4350 3553

Book Value Per Share

(Rupees) 366.10 325.41 284.26 248.14 205.32 175.43 @
138.10 192.12 180.87 147.98

@
Book Value Per Share is shown after giving effect to the sub division of each Ordinary (Equity) Share of the face value Rs. 10
each fully paid up into two Ordinary (Equity) Shares of Rs. 5 each fully paid up in March, 2010.
Book Value Per Share is calculated after reducing Misc. Expenditure not written off and Revaluation Reserve from Net Worth.

144 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Summary of Operations
Rupees crores
As per Schedule III As per Revised Schedule VI of As per Old Schedule VI of
of The Companies The Companies Act, 1956 The Companies Act, 1956
Act, 2013

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Income 44461 41481 43838 43962 34820 25989 20724 15072 13301 11645
Materials 29566 27955 29432 30425 23500 16264 12333 9274 7726 6828
Excise Duty (Net) 2722 2188 2612 2972 2501 2095 1807 1587 1584 1335
Personnel 2342 2317 2164 1866 1701 1432 1198 1025 868 666
Finance Costs/
Interest 155 214 259 191 163 72 157 134 87 20
Depreciation and
Amortisation
Expense 1109 975 863 711 576 414 371 292 239 209
Other Expenses 4406 3999 4191 3441 2881 2310 2102 1734 1563 1271
Exceptional items 69 336 52 91 108 118 91 10 173 122
Profit before tax for
the year 4230 4169 4369 4447 3606 3520 2847 1036 1407 1438
Tax for the year 1063 848 611 1094 727 858 759 199 304 351
Adj. pertaining to
Prev. Years — — — — — — — 31 — (19)
Balance profit 3167 3321 3758 3353 2879 2662 2088 868 1103 1068
Dividends #+842 +847 +963 +894 +869 + 803 +624 +312 +321 +325
Equity Dividend (%) 240 240 280 260 250 230 190 100 115 115
Earnings Per Share
(Rupees) 53.51 56.23 63.67 56.85 48.97 46.21 37.97 15.92 23.12 22.58
Vehicles produced/
purchased (Units) 496859 464799 506035 555510 474145 355500 284516 201993 196956 169557
Vehicles sold (Units) 494096 464850 507176 551469 469345 354073 282119 206688 195077 169679
Tractors
produced (Units) 217383 224330 277425 219893 246475 216388 173276 119098 98917 103847
Tractors sold (Units) 214173 234766 268487 224844 236666 214325 175196 120202 99042 102531

# Proposed Dividend.
+ Including Income-tax on Proposed Dividend/Dividends.
 Profit of Mahindra Holdings and Finance Limited for the period 1st February, 2008 to 31st March, 2008.

Mahindra & Mahindra Limited 145

Financial Highlights

Debt Equity Ratio Net Income and PAT (Rupees crores)

0.70 45000 5000

Net Income
41226 41739
PAT 40990
40000 39293 4500
0.60

3758 4000
35000
32319
0.50 3353 3321 3500
30000 3167
2879 3000

Net Income
0.40 25000
Times

PAT
2500
0.29 20000
0.30
0.24 2000
0.24
15000
0.19 1500
0.20
0.13 10000
1000
0.10
5000 500

0.00 0 0

FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016

Earnings Per Share (Rs.) Net Segmental Revenue

F-2016
70.00
63.67
Others
60.00 56.85 0.1%
56.23
53.51
48.97 Farm
50.00
Equipment
31.1%

40.00
EPS (Rs.)

30.00

20.00

10.00

Automotive
68.8%
0.00

FY2012 FY2013 FY2014 FY2015 FY2016

146 Annual Report 2015-16

Standalone
Accounts
 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Independent Auditor’s Report to the Members of Mahindra & Mahindra Limited

Report on the Standalone Financial Statements those risk assessments, the auditor considers internal financial
1. We have audited the accompanying standalone financial control relevant to the Company’s preparation of the financial
statements of Mahindra & Mahindra Limited (“the Company”), statements that give a true and fair view in order to design audit
which comprise the Balance Sheet as at 31 March, 2016, the
st procedures that are appropriate in the circumstances. An audit
Statement of Profit and Loss and the Cash Flow Statement for the also includes evaluating the appropriateness of the accounting
year then ended, and a summary of the significant accounting policies used and the reasonableness of the accounting estimates
policies and other explanatory information. made by the Company’s Directors, as well as evaluating the
overall presentation of the financial statements.
Management’s Responsibility for the Standalone Financial Statements
5. We believe that the audit evidence we have obtained is sufficient
2. The Company’s Board of Directors is responsible for the matters and appropriate to provide a basis for our audit opinion on the
stated in Section 134(5) of the Companies Act, 2013 (“the standalone financial statements.
Act”) with respect to the preparation of these standalone
financial statements that give a true and fair view of the Opinion
financial position, financial performance and cash flows of the 6. In our opinion and to the best of our information and according
Company in accordance with the accounting principles generally to the explanations given to us, the aforesaid standalone financial
accepted in India, including the Accounting Standards prescribed statements give the information required by the Act in the
under Section 133 of the Act as applicable. This responsibility manner so required and give a true and fair view in conformity
also includes maintenance of adequate accounting records in with the accounting principles generally accepted in India, of the
accordance with the provisions of the Act for safeguarding the state of affairs of the Company as at 31st March, 2016, and its
assets of the Company and for preventing and detecting frauds profit and its cash flows for the year ended on that date.
and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are Report on Other Legal and Regulatory Requirements
reasonable and prudent; and design, implementation and 7. As required by Section 143(3) of the Act, we report that:
maintenance of adequate internal financial controls, that were (a) We have sought and obtained all the information and
operating effectively for ensuring the accuracy and completeness explanations which to the best of our knowledge and belief
of the accounting records, relevant to the preparation and were necessary for the purposes of our audit.
presentation of the financial statements that give a true and fair
(b) In our opinion, proper books of account as required by law
view and are free from material misstatement, whether due to
have been kept by the Company so far as it appears from
fraud or error.
our examination of those books.
Auditor’s Responsibility (c) The Balance Sheet, the Statement of Profit and Loss, and
3. Our responsibility is to express an opinion on these standalone the Cash Flow Statement dealt with by this Report are in
financial statements based on our audit. We have taken into agreement with the books of account.
account the provisions of the Act, the accounting and auditing (d) In our opinion, the aforesaid standalone financial statements
standards and matters which are required to be included in the comply with the Accounting Standards prescribed under
audit report under the provisions of the Act and the Rules made Section 133 of the Act, as applicable.
thereunder and the Order under Section 143(11) of the Act. (e) On the basis of the written representations received from
We conducted our audit of the standalone financial statements the directors as on 31st March, 2016 taken on record by the
in accordance with the Standards on Auditing specified under Board of Directors, none of the directors is disqualified as
Section 143(10) of the Act. Those Standards require that we on 31st March, 2016 from being appointed as a director in
comply with ethical requirements and plan and perform the terms of Section 164(2) of the Act.
audit to obtain reasonable assurance about whether the financial
(f) With respect to the adequacy of the internal financial
statements are free from material misstatement.
controls over financial reporting of the Company and
4. An audit involves performing procedures to obtain audit evidence the operating effectiveness of such controls, refer to our
about the amounts and the disclosures in the financial statements. separate Report in “Annexure A”. Our report expresses
The procedures selected depend on the auditor’s judgment, an unmodified opinion on the adequacy and operating
including the assessment of the risks of material misstatement of effectiveness of the Company’s internal financial controls
the financial statements, whether due to fraud or error. In making over financial reporting.

Mahindra & Mahindra Limited 149

 (g) With respect to the other matters to be included in iii. There has been no delay in transferring amounts,
the Auditor’s Report in accordance with Rule 11 of the required to be transferred, to the Investor Education
Companies (Audit and Auditors) Rules, 2014, in our opinion and Protection Fund by the Company.
and to the best of our information and according to the
8. As required by the Companies (Auditor’s Report) Order, 2016
explanations given to us:
(“the Order”) issued by the Central Government in terms of
i. The Company has disclosed the impact of pending
Section 143(11) of the Act, we give in “Annexure B” a statement
litigations on its financial position in its financial
on the matters specified in paragraphs 3 and 4 of the Order.
statements in accordance with generally accepted
accounting practice – also Refer Note 34 to the financial For DELOITTE HASKINS & SELLS
statements. Chartered Accountants
ii. The Company has made provision, where required (Firm’s Registration No. 117364W)
under any law or accounting standard for material Shyamak R Tata
foreseeable losses on long-term contracts including Partner
derivative contracts. Mumbai, 30 th May, 2016 (Membership No. 38320)

150 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Annexure “A” to the Independent Auditor’s Report

(Referred to in paragraph 7(f) under ‘Report on Other Legal and We believe that the audit evidence we have obtained is sufficient and
Regulatory Requirements’ of our report of even date) appropriate to provide a basis for our audit opinion on the Company’s
Report on the Internal Financial Controls Over Financial Reporting internal financial controls system over financial reporting.
under Clause (i) of Sub-section 3 of Section 143 of the Companies Meaning of Internal Financial Controls Over Financial Reporting
Act, 2013 (“the Act”)
A company’s internal financial control over financial reporting is a
We have audited the internal financial controls over financial process designed to provide reasonable assurance regarding the
reporting of Mahindra & Mahindra Limited (“the Company”) as reliability of financial reporting and the preparation of financial
of March 31, 2016 in conjunction with our audit of the standalone statements for external purposes in accordance with generally
financial statements of the Company for the year ended on that date. accepted accounting principles. A company’s internal financial control
over financial reporting includes those policies and procedures
Management’s Responsibility for Internal Financial Controls that (1) pertain to the maintenance of records that, in reasonable
The Company’s management is responsible for establishing and detail, accurately and fairly reflect the transactions and dispositions
maintaining internal financial controls based on the internal of the assets of the company; (2) provide reasonable assurance that
control over financial reporting criteria established by the Company transactions are recorded as necessary to permit preparation of
considering the essential components of internal control stated financial statements in accordance with generally accepted accounting
in the Guidance Note on Audit of Internal Financial Controls Over principles, and that receipts and expenditures of the company are
Financial Reporting issued by the Institute of Chartered Accountants being made only in accordance with authorisations of management
of India. These responsibilities include the design, implementation and directors of the company; and (3) provide reasonable assurance
and maintenance of adequate internal financial controls that were regarding prevention or timely detection of unauthorised acquisition,
operating effectively for ensuring the orderly and efficient conduct use, or disposition of the Company’s assets that could have a material
of its business, including adherence to company’s policies, the effect on the financial statements.
safeguarding of its assets, the prevention and detection of frauds and
Inherent Limitations of Internal Financial Controls Over Financial
errors, the accuracy and completeness of the accounting records, and
Reporting
the timely preparation of reliable financial information, as required
under the Companies Act, 2013. Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper
Auditor’s Responsibility management override of controls, material misstatements due to
Our responsibility is to express an opinion on the Company’s internal error or fraud may occur and not be detected. Also, projections of any
financial controls over financial reporting based on our audit. We evaluation of the internal financial controls over financial reporting
conducted our audit in accordance with the Guidance Note on Audit to future periods are subject to the risk that the internal financial
of Internal Financial Controls Over Financial Reporting (the “Guidance control over financial reporting may become inadequate because
Note”) issued by the Institute of Chartered Accountants of India and of changes in conditions, or that the degree of compliance with the
the Standards on Auditing prescribed under Section 143(10) of the policies or procedures may deteriorate.
Companies Act, 2013, to the extent applicable to an audit of internal
Opinion
financial controls. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform In our opinion, to the best of our information and according to the
the audit to obtain reasonable assurance about whether adequate explanations given to us, the Company has, in all material respects, an
internal financial controls over financial reporting was established and adequate internal financial controls system over financial reporting
maintained and if such controls operated effectively in all material and such internal financial controls over financial reporting were
respects. operating effectively as at March 31, 2016, based on the internal
control over financial reporting criteria established by the Company
Our audit involves performing procedures to obtain audit evidence
considering the essential components of internal control stated in the
about the adequacy of the internal financial controls system over
Guidance Note on Audit of Internal Financial Controls Over Financial
financial reporting and their operating effectiveness. Our audit of
Reporting issued by the Institute of Chartered Accountants of India.
internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial
For DELOITTE HASKINS & SELLS
reporting, assessing the risk that a material weakness exists, and
Chartered Accountants
testing and evaluating the design and operating effectiveness of
(Firm’s Registration No. 117364W)
internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgement, including the assessment of the Shyamak R Tata
risks of material misstatement of the financial statements, whether Partner
due to fraud or error. Mumbai, 30 th May, 2016 (Membership No. 38320)

Mahindra & Mahindra Limited 151

Annexure “B” to the Independent Auditor’s Report
(Referred to in paragraph 8 under ‘Report on Other Legal and iv. In our opinion and according to the information and explanations
Regulatory Requirements’ section of our report of even date) given to us, the Company has complied with the provisions of
Sections 185 and 186 of the Companies Act, 2013 in respect of
i. (a) The Company has maintained proper records showing full
grant of loans, making investments and providing guarantees
particulars, including quantitative details and situation of
and securities, as applicable.
the fixed assets.
v. According to the information and explanations given to us,
(b) The fixed assets were physically verified during the year by the Company has not accepted any deposit during the year
the Management in accordance with a regular programme and accordingly the question of complying with Section 73
of verification which, in our opinion, provides for physical and 76 of the Companies Act, 2013 does not arise. In respect
verification of all the fixed assets at reasonable intervals. of unclaimed deposits, the Company has complied with the
According to the information and explanations given to us, provisions of Sections 74 and 75 or any other relevant provisions
no material discrepancies were noticed on such verification. of the Companies Act, 2013. According to the information and
(c) With respect to immovable properties of acquired land and explanations given to us, no order has been passed by the
Company Law Board or the National Company Law Tribunal or
buildings that are freehold, according to the information
the Reserve Bank of India or any Court or any other Tribunal on
and explanations given to us and the records examined by us
the Company.
and based on the examination of the registered sale deed/
transfer deed/conveyance deed/court orders approving vi. The maintenance of cost records has been prescribed by the
schemes of arrangements/amalgamations provided to Central Government under Section 148(1) of the Companies Act,
us, we report that, the title deeds of such immovable 2013 in respect of specified products of the Company. For such
properties are held in the name of the Company as at the products, we have broadly reviewed the cost records maintained
balance sheet date. In respect of immovable properties by the Company, pursuant to the Companies (Cost Records and
of land and buildings that have been taken on lease and Audit) Rules, 2014, as amended, and are of the opinion that,
disclosed as fixed assets in the financial statements, the prima facie, the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination
lease agreements are in the name of the Company, where
of the cost records with a view to determine whether they are
the Company is the lessee in the agreement.
accurate or complete.
ii. As explained to us, the inventories were physically verified
vii. According to the information and explanations given to us, in
during the year by the Management at reasonable intervals
respect of statutory dues:
and no material discrepancies were noticed on such physical
(a) The Company has been regular in depositing undisputed
verification.
statutory dues, including Provident Fund, Employees’ State
iii. The Company has not granted any loans, secured or unsecured, Insurance, Income-Tax, Sales Tax, Service Tax, Customs Duty,
to companies, firms, Limited Liability Partnerships or other Excise Duty, Value Added Tax, Cess and other material
parties covered in the Register maintained under Section 189 of statutory dues applicable to it with the appropriate
the Companies Act, 2013. authorities.

152 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

(b) Details of dues of Income-Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty and Value Added Tax which have not been deposited as
on 31 March, 2016 on account of disputes are given below:

Nature of Statute Nature of Dues Forum where dispute is pending Period to which Amount
the amount relates (Rs. in crores)
(Various years
covering the period)
Income Tax Act, Income Tax High Court 1999-2000 0.03
1961
Income-Tax Appellate Tribunal 2005-2012 158.28
Commissioner of Income-Tax (Appeals) 2006-2014 22.78
Central Excise Act, Excise High Court 2004-2008 26.98
1944
Appellate Authority – Tribunal Level 1988-2015 956.66
Appellate Authority – Commissioner 1991-2016 646.14
Sales Tax and Value Sales Tax High Court 2005-2016 182.25
Added Tax Laws
Appellate Authority – Tribunal Level 1987-2013 30.38
Appellate Authority – Commissioner 1994-2016 621.08
Appellate Authority – Revisional Board 2006-2010 17.02
Finance Act, 1994 Service Tax High Court 2005-2012 0.11
Appellate Authority – Commissioner 2003-2015 2.07
Appellate Authority – Tribunal Level 2001-2014 72.77
Customs Act, 1962 Custom Duty High Court 1996-2001 1.49
Appellate Authority – Tribunal Level 1990-1994 1.14

viii. In our opinion and according to the information and explanations transactions with the related parties and the details of related
given to us, the Company has not defaulted in the repayment party transactions have been disclosed in the financial statements
of loans or borrowings to financial institutions, banks and etc. as required by the applicable accounting standards.
government and dues to debenture holders.
xiv. During the year the Company has not made any preferential
ix. The Company has not raised moneys by way of initial public offer allotment or private placement of shares or fully or partly
or further public offer (including debt instruments) during the convertible debentures and hence reporting under clause (xiv)
year. According to the information and explanations given to us, of the Order is not applicable to the Company.
the term loans raised have been applied by the Company during
xv. In our opinion and according to the information and explanations
the year for the purposes for which they were raised.
given to us, during the year the Company has not entered into
x. To the best of our knowledge and according to the information any non-cash transactions with its directors or directors of its
and explanations given to us, no fraud by the Company and no holding, subsidiary or associate company or persons connected
material fraud on the Company by its officers or employees has with them and hence provisions of Section 192 of the Companies
been noticed or reported during the year. Act, 2013 are not applicable.

xi. In our opinion and according to the information and explanations xvi. The Company is not required to be registered under
given to us, the Company has paid/provided managerial Section 45-IA of the Reserve Bank of India Act, 1934.
remuneration in accordance with the requisite approvals
mandated by the provisions of Section 197 read with Schedule V
to the Companies Act, 2013. For DELOITTE HASKINS & SELLS

xii. The Company is not a Nidhi Company and hence reporting under Chartered Accountants
clause (xii) of the Order is not applicable. (Firm’s Registration No. 117364W)

xiii. In our opinion and according to the information and explanations Shyamak R Tata
given to us, the Company is in compliance with Sections 177 Partner
and 188 of the Companies Act, 2013, where applicable, for all Mumbai, 30 th May, 2016 (Membership No. 38320)

Mahindra & Mahindra Limited 153

Balance Sheet as at 31 st
March, 2016
Rupees crores
Note 2016 2015
I. EQUITY AND LIABILITIES
SHAREHOLDERS’ FUNDS :
(a) Share Capital .................................................................................... 2 296.32 295.70
(b) Reserves and Surplus....................................................................... 3 21,410.87 18,959.39
21,707.19 19,255.09
NON CURRENT LIABILITIES :
(a) Long Term Borrowings.................................................................... 4 1,495.42 2,514.13
(b) Deferred Tax Liabilities (Net) ......................................................... 5 1,247.51 979.70
(c) Other Long Term Liabilities ............................................................ 6 596.41 614.34
(d) Long Term Provisions ...................................................................... 7 672.14 607.34
4,011.48 4,715.51
CURRENT LIABILITIES :
(a) Short Term Borrowings ................................................................... 8 348.13 106.25
(b) Trade Payables :
– Micro and Small enterprises ........................................................ 121.74 79.53
– Other than Micro and Small enterprises (including acceptances) 6,641.89 5,285.92
9 6,763.63 5,365.45
(c) Other Current Liabilities ................................................................. 10 2,242.57 2,041.13
(d) Short Term Provisions ..................................................................... 11 1,339.34 1,461.44
10,693.67 8,974.27
Total ............. 36,412.34 32,944.87
II. ASSETS
NON CURRENT ASSETS :
(a) Fixed Assets
Tangible Assets ................................................................................ 12 (A) 6,902.60 5,795.44
Intangible Assets ............................................................................. 12 (B) 1,050.26 134.02
Capital Work-in-Progress ................................................................ 234.90 755.67
Intangible Assets Under Development ......................................... 1,330.62 1,423.09
9,518.38 8,108.22
(b) Non Current Investments................................................................ 13 (A) 11,144.66 11,372.74
(c) Long Term Loans and Advances .................................................... 14 4,057.44 3,232.26
(d) Other Non Current Assets .............................................................. 15 58.66 103.44
24,779.14 22,816.66
CURRENT ASSETS :
(a) Current Investments ........................................................................ 13 (B) 2,375.71 1,765.42
(b) Inventories ........................................................................................ 16 2,687.93 2,437.57
(c) Trade Receivables ............................................................................ 17 2,512.05 2,558.03
(d) Cash and Bank Balances ................................................................. 18 2,297.03 2,064.77
(e) Short Term Loans and Advances.................................................... 19 1,179.25 773.10
(f) Other Current Assets....................................................................... 20 581.23 529.32
11,633.20 10,128.21
Total ............. 36,412.34 32,944.87

}
The accompanying notes 1 to 50 are an integral part of the Financial Statements

In terms of our report attached.

Deepak S. Parekh Anand G. Mahindra Chairman & Managing Director
For Deloitte Haskins & Sells Nadir B. Godrej
M. M. Murugappan Dr. Pawan Goenka Executive Director & Group President
Chartered Accountants (Auto and Farm Sector)
R. K. Kulkarni
Directors
Anupam Puri V. S. Parthasarathy Group Chief Financial Officer, Group CIO &
Vishakha N. Desai President (Group Finance and M&A)
Shyamak R Tata
Vikram Singh Mehta
Partner S. B. Mainak Narayan Shankar Company Secretary
Mumbai, 30 th May, 2016 Mumbai, 30 th May, 2016

154 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Statement of Profit and Loss for the year ended 31 st

March, 2016
Rupees crores
Note 2016 2015
Gross Revenue from Sale of Products and Services...................................... 21 43,118.32 40,078.71
Less : Excise Duty ............................................................................................. 2,721.66 2,187.69
Net Revenue from Sale of Products and Services......................................... 21 40,396.66 37,891.02
Other Operating Revenue ............................................................................... 21 488.32 553.81
Revenue from Operations (Net) ..................................................................... 40,884.98 38,444.83
Other Income .................................................................................................... 22 854.85 848.94
Total Revenue ................................................................................................... 41,739.83 39,293.77

EXPENSES :
Cost of Materials Consumed ........................................................................... 23 19,373.16 20,272.48
Purchases of Stock-in-Trade ............................................................................. 24 10,409.26 7,359.37
Changes in Inventories of Finished Goods, Work-in-Progress,
Stock-in-Trade and Manufactured Components ........................................... 25 (215.80) 323.63
Employee Benefits Expense............................................................................. 26 2,342.15 2,316.93
Finance Costs .................................................................................................... 27 155.29 214.30
Depreciation and Amortisation Expense ....................................................... 28 1,108.61 974.90
Other Expenses ................................................................................................. 29 4,485.26 4,099.98
37,657.93 35,561.59
Less : Cost of Manufactured Products Capitalised ...................................... 79.26 100.99
Total Expenses .................................................................................................. 37,578.67 35,460.60
Profit Before Exceptional Items and Tax ....................................................... 4,161.16 3,833.17
Add : Exceptional Items .................................................................................. 40 68.74 335.72
Profit Before Tax............................................................................................... 4,229.90 4,168.89
Less : Tax Expense
Current Tax ............................................................................................ 857.65 835.92
Less : MAT Credit Entitlement ............................................................. 52.02 92.72
Net Current Tax ..................................................................................... 805.63 743.20
Deferred Tax (Net) ................................................................................ 256.79 104.58
1,062.42 847.78
Profit for the year ............................................................................................ 3,167.48 3,321.11

Earnings per equity share 41

(Face value Rs. 5/- per share) (Rupees)
Basic ................................................................................................................... 53.51 56.23
Diluted ............................................................................................................... 51.00 53.66

}
The accompanying notes 1 to 50 are an integral part of the Financial Statements

In terms of our report attached.

Deepak S. Parekh Anand G. Mahindra Chairman & Managing Director
For Deloitte Haskins & Sells Nadir B. Godrej
M. M. Murugappan Dr. Pawan Goenka Executive Director & Group President
Chartered Accountants (Auto and Farm Sector)
R. K. Kulkarni
Directors
Anupam Puri V. S. Parthasarathy Group Chief Financial Officer, Group CIO &
Vishakha N. Desai President (Group Finance and M&A)
Shyamak R Tata
Vikram Singh Mehta
Partner S. B. Mainak Narayan Shankar Company Secretary
Mumbai, 30 th May, 2016 Mumbai, 30 th May, 2016

Mahindra & Mahindra Limited 155

Cash Flow Statement for the year ended 31st March, 2016
Rupees crores
2016 2015
A. CASH FLOW FROM OPERATING ACTIVITIES :
Profit before exceptional items and tax ................................................................................................ 4,161.16 3,833.17
Adjustments for :
Depreciation and Amortisation ........................................................................................................... 1,108.61 974.90
Loss on Exchange (Net) ........................................................................................................................ 147.92 81.30
Investment and Interest Income .......................................................................................................... (679.05) (713.93)
Interest, Commitment and Finance Charges ...................................................................................... 155.29 214.30
Employee Stock Compensation Expense ............................................................................................ 88.37 35.07
Write off of Intangible Assets Under Development ......................................................................... 9.44 19.38
Profit on sale of investments (Net) ..................................................................................................... (49.03) (5.84)
(Profit)/Loss on fixed assets sold/scrapped/written off (Net) .......................................................... 27.31 (1.78)
Excess of cost over fair value of current investments (Net) ............................................................. (2.91) (0.76)
805.95 602.64

Operating Profit before Working Capital changes ............................................................................... 4,967.11 4,435.81

Changes in :
Trade and other receivables ................................................................................................................. 143.42 (183.73)
Inventories.............................................................................................................................................. (250.36) 366.06
Trade and other payables..................................................................................................................... 1,546.24 (551.90)
1,439.30 (369.57)
Cash generated from operations ............................................................................................................ 6,406.41 4,066.24
Income Taxes paid (Net of refunds) ....................................................................................................... (927.88) (846.75)
NET CASH FROM OPERATING ACTIVITIES .............................................................................................. 5,478.53 3,219.49

B. CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of fixed assets ........................................................................................................................... (2,172.44) (2,034.55)
Sale of fixed assets ................................................................................................................................... 12.78 12.00
Purchase of long term investments – Subsidiaries ................................................................................ (3,242.53) (1,325.20)
Purchase of long term investments – Joint Venture ............................................................................. (170.13) —
Purchase of other long term investments.............................................................................................. (1.50) (6.95)
Purchase of current investments ............................................................................................................. (77,402.40) (70,378.25)
Sale of current investments ..................................................................................................................... 76,893.30 70,292.97
Interest received ....................................................................................................................................... 182.85 192.73
Dividends received .................................................................................................................................... 416.97 413.00
Bank Deposits placed ............................................................................................................................... (2,179.45) (1,991.00)
Bank Deposits matured ............................................................................................................................ 1,876.00 2,089.65
Increase in Earmarked Balances & Margin account .............................................................................. (3.61) (1.50)
Inter corporate deposits given ................................................................................................................ (300.00) (1.53)
Inter corporate deposits refunded.......................................................................................................... 27.68 239.97
Loan given ................................................................................................................................................. (1,200.00) —
Repayment of loan given......................................................................................................................... 14.95 35.15
Exceptional Items :
Sale of long term investments ............................................................................................................. 3,701.40 40.42
NET CASH USED IN INVESTING ACTIVITIES ............................................................................................ (3,546.13) (2,423.09)

156 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Cash Flow Statement (contd.)

Rupees crores
2016 2015
C. CASH FLOW FROM FINANCING ACTIVITIES :
Proceeds from Issue of Share Capital (including Securities Premium)................................................ — 2.60
Proceeds from borrowings....................................................................................................................... 348.39 104.31
Repayments of borrowings .................................................................................................................... (1,298.41) (488.97)
Net decrease in Cash Credit Facilities ..................................................................................................... — (0.05)
Dividends paid [including income-tax on dividends Rs. 101.64 crores (2015 : Rs. 100.76 crores)].. (846.06) (960.85)
Interest, commitment and finance charges paid .................................................................................. (211.03) (241.86)

NET CASH USED IN FINANCING ACTIVITIES ........................................................................................... (2,007.11) (1,584.82)

NET DECREASE IN CASH AND CASH EQUIVALENTS.............................................................................. (74.71) (788.42)

OPENING CASH AND CASH EQUIVALENTS ............................................................................................ 917.19 1,705.61

CLOSING CASH AND CASH EQUIVALENTS ............................................................................................. 842.48 917.19

Mahindra & Mahindra Limited 157

Notes to the Cash Flow Statement for the year ended 31st March, 2016

Rupees crores
2016 2015

1. The above Cash Flow Statement has been prepared under the ‘indirect method’ as set out in
Accounting Standard 3 ‘Cash Flow Statement’

2. Cash and Cash Equivalents ................................................................................................................... 842.48 917.19

Unrealised Loss on foreign currency Cash and Cash Equivalents..................................................... (0.17) (0.08)

842.31 917.11
Other Bank Balances ............................................................................................................................. 1,454.72 1,147.66

Cash and Bank Balances (Note 18) ...................................................................................................... 2,297.03 2,064.77

3. (a) The Company acquired shares in its subsidiary by converting its deposits ............................ — 76.50

(b) Also refer Note 37 and 38

(c) These arrangements/transfers are non-cash transactions.

}
In terms of our report attached.
Deepak S. Parekh Anand G. Mahindra Chairman & Managing Director
For Deloitte Haskins & Sells Nadir B. Godrej
M. M. Murugappan Dr. Pawan Goenka Executive Director & Group President
Chartered Accountants (Auto and Farm Sector)
R. K. Kulkarni
Directors
Anupam Puri V. S. Parthasarathy Group Chief Financial Officer, Group CIO &
Vishakha N. Desai President (Group Finance and M&A)
Shyamak R Tata
Vikram Singh Mehta
Partner S. B. Mainak Narayan Shankar Company Secretary
Mumbai, 30 May, 2016
th
Mumbai, 30 th May, 2016

158 Annual Report 2015-16

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Overview Report and Analysis Governance Report Accounts Accounts

Notes forming part of the Financial Statements for the year ended 31st March, 2016

1. Significant Accounting Policies :

(A) Basis of Accounting :
The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India
(Indian GAAP) and comply with the Accounting Standards prescribed under Section 133 of the Companies Act, 2013.

(B) Tangible Assets :

(a) (i) Tangible assets are carried at cost less depreciation except as stated in (ii) below. Cost includes financing cost relating to
borrowed funds attributable to the construction or acquisition of qualifying tangible assets upto the date the assets are ready
for use. Where the acquisition of depreciable tangible assets are financed through long term foreign currency loans (having a
term of 12 months or more at the time of their origination) the exchange differences on such loans are added to or subtracted
from the cost of such depreciable tangible assets.
When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account
and resultant profit (including capital profit) or loss, if any, is reflected in the Statement of Profit and Loss.
(ii) Land and Buildings, had been revalued as at 31st October, 1984 at depreciated replacement values on the basis of a valuation
made by a firm of Chartered Surveyors and Valuers. The indices, if any, used are not stated in the valuation.
(b) (i) Leasehold land is amortised over the period of the lease.
(ii) Depreciation is calculated on Straight Line method over the estimated useful life of all assets. These lives are in accordance
with Schedule II to the Companies Act, 2013, other than the following asset classes based on the Company’s expected usage
pattern supported by technical assessment :
(a) Certain items of Plant and Equipment – 2 years, 3 years, 5 years, 7 years, 10 years, 20 years and 25 years as the case may be.
(b) Buildings (Roads) – 15 years.
(c) Vehicles – 5 years.

(C) Intangible Assets :

Intangible assets are carried at cost and amortised on a Straight Line Basis so as to reflect the pattern in which the asset’s economic
benefits are consumed.
(a) Technical Knowhow :
The expenditure incurred is amortised over the estimated period of benefit, not exceeding six years commencing with the year of
purchase of the technology.
(b) Development Expenditure :
The expenditure incurred on technical services and other project/product related expenses are amortised over the estimated period
of benefit, not exceeding five years.
(c) Software Expenditure :
The expenditure incurred is amortised over three financial years equally commencing from the year in which the expenditure is
incurred.
(d) Others :
The expenditure incurred is amortised over the estimated period of benefit, not exceeding ten years.

(D) Impairment of Assets :

The carrying value of assets/cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds
their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived
at by discounting the future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its
useful life to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised
for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the
Statement of Profit and Loss, except in case of revalued assets.

Mahindra & Mahindra Limited 159

 (E) Investments :
Long term investments are valued at cost. However, provision for diminution in value is made to recognise a decline other than
temporary in the value of investments. Current investments are valued at the lower of cost and fair value, determined by category
of investment.

(F) Inventories :
Inventories comprise all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and
condition.
Raw materials and bought out components are valued at the lower of cost or net realisable value. Cost is determined on the basis of
the weighted average method.
Finished goods produced and purchased for sale, manufactured components and work-in-progress are carried at cost or net realisable
value whichever is lower. Excise duty is included in the value of finished goods inventory.
Stores, spares and tools other than obsolete and slow moving items are carried at cost. Obsolete and slow moving items are valued at
cost or estimated net realisable value, whichever is lower.

(G) Foreign Exchange Transactions :

Transactions in foreign currencies (other than firm commitments and highly probable forecast transactions) are recorded at the
exchange rates prevailing on the date of transaction. Monetary items are translated at the year-end rates. The exchange difference
between the rate prevailing on the date of transaction and on the date of settlement as also on translation of monetary items at the
end of the year (other than those relating to long term foreign currency monetary items) is recognised as income or expense, as the
case may be.
Exchange differences relating to long term foreign currency monetary items, to the extent they are used for financing the acquisition
of depreciable assets are added to, or subtracted from, the cost of such depreciable assets and the balance accumulated in ‘Foreign
Currency Monetary Item Translation Difference Account’, under Reserves and Surplus, and amortised over the balance term of the long
term monetary item.
Any premium or discount arising at the inception of a forward exchange contract is recognised as income or expense over the life of the
contract, except where the contract is designated as a cash flow hedge.

(H) Derivative Instruments and Hedge Accounting :

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency
fluctuations relating to certain firm commitments and highly probable forecast transactions. The Company does not hold derivative
financial instruments for speculative purposes. The Company has applied to such contracts the hedge accounting principles set
out in Accounting Standard 30 ‘Financial Instruments : Recognition and Measurement’ (AS 30) by marking them to market at each
reporting date.
Changes in the fair value of the contracts that are designated and effective as hedges of future cash flows are recognised directly in
Hedging Reserve Account and the ineffective portion is recognised in the Statement of Profit and Loss.

(I) Revenue Recognition :

Sale of products and services including export benefits thereon are recognised when the products are shipped or services rendered.
Excise duty recovered on sales is included in “Revenue from Operations”.
Dividend from investments are recognised in the Statement of Profit and Loss when the right to receive payment is established.

(J) Government Grants :

The Company, directly or indirectly through a consortium of Mahindra Group Companies, is entitled to various incentives from government
authorities in respect of manufacturing units located in developing regions. The Company accounts for its entitlement as income on
accrual basis.

(K) Employee Benefits :

In respect of Defined Contribution Plans/Defined Benefit Plans/Long term Compensated Absences :
Company’s contributions paid/payable during the year to Superannuation Fund, ESIC and Labour Welfare Fund are recognised in the
Statement of Profit and Loss.

160 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Contributions to Provident Fund are made to a Trust administered by the Company/Regional Provident Fund Commissioner and are
charged to Statement of Profit and Loss as incurred. The Company is liable for the contribution and any shortfall in interest between the
amount of interest realised by the investments and the interest payable to members at the rate declared by the Government of India in
respect of the Trust administered by the Company.
Company’s liability towards gratuity, long term compensated absences, post retirement medical benefit and post retirement
housing allowance schemes are determined by independent actuaries, using the projected unit credit method. Past services are
recognised on a straight line basis over the average period until the benefits become vested. Actuarial gains and losses are recognised
immediately in the Statement of Profit and Loss as income or expense. Obligation is measured at the present value of estimated future
cash flows using a discounted rate that is determined by reference to the market yields at the Balance Sheet date on Government
Bonds where the currency and terms of the Government Bonds are consistent with the currency and estimated terms of the defined
benefit obligation.

In respect of Employee Stock Option Scheme :

The compensation cost of stock options granted to employees is measured by the Intrinsic Value Method. The intrinsic value, which
is the excess of the market price of the underlying equity shares as of the date of the grant over the exercise price of the option,
is recognised and amortised on straight line basis over the vesting period.

(L) Borrowing Costs :

All borrowing costs are charged to the Statement of Profit and Loss except :
(i) Borrowing costs that are attributable to the acquisition or construction of qualifying tangible and intangible assets that
necessarily take a substantial period of time to get ready for their intended use, which are capitalised as part of the cost of
such assets.
(ii) Expenses incurred on raising long term borrowings are amortised over the period of borrowings. On early buyback, conversion or
repayment of borrowings, any unamortised expenditure is fully written off in that year.

(M) Product Warranty :

In respect of warranties given by the Company on sale of certain products, the estimated costs of these warranties are accrued at the
time of sale. The estimates for accounting of warranties are reviewed and revisions are made as required.

(N) Leases :
The Company’s significant leasing arrangements are in respect of operating leases for premises (residential, office, stores, godowns,
computer hardware etc.). The leasing arrangements, which are not non-cancellable, range between eleven months and five years
generally, and are usually renewable by mutual consent on agreed terms. The aggregate lease rentals payable are charged
as rent.

(O) Taxes on Income :

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised, subject to
consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising on account of unabsorbed
depreciation or carry forward of tax losses are recognised only to the extent that there is virtual certainty supported by convincing
evidence that sufficient future tax income will be available against which such deferred tax assets can be realised.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax against
which the MAT paid will be adjusted.

(P) Segment Reporting :

Segments are identified having regard to the dominant source and nature of risks and returns and internal organisation and
management structure.
Revenues and expenses have been identified to the segment based on their relationship to the business activity of the segment.
Income/Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as
unallocated corporate income/expenses. Inter-segment transfers are at prices which are generally market led.

Mahindra & Mahindra Limited 161

2. Share Capital :
Rupees crores
2016 2015
Authorised :
1,20,00,00,000 Ordinary (Equity) Shares of Rs. 5 each................................................................... 600.00 600.00
25,00,000 Unclassified Shares of Rs. 100 each ........................................................................ 25.00 25.00

625.00 625.00

Issued and Subscribed :

62,10,92,384 (2015 : 62,10,92,384) Ordinary (Equity) Shares of Rs. 5 each fully paid up. ....... 310.55 310.55
Less :
2,84,58,577 (2015 : 2,97,00,106) Ordinary (Equity) Shares of Rs. 5 each fully paid up issued
to ESOP Trust but not allotted to employees ....................................................... 14.23 14.85

Adjusted : Issued and Subscribed Share Capital................................................................................. 296.32 295.70

(A) Reconciliation of number of Ordinary (Equity) Shares and amount outstanding :

2016 2015
No. of shares Rupees crores No. of shares Rupees crores
Issued and Subscribed :
Balance as at the beginning of the year .......................... 62,10,92,384 310.55 61,58,92,384 307.95

Add :
Shares issued to ESOP Trust ............................................... — — 52,00,000 2.60

Balance as at the end of the year ..................................... 62,10,92,384 310.55 62,10,92,384 310.55

Less :
Shares issued to ESOP Trust but not allotted to
Employees [Note 3(K)] ........................................................ 2,84,58,577 14.23 2,97,00,106 14.85

Adjusted : Issued and Subscribed Share Capital.............. 59,26,33,807 296.32 59,13,92,278 295.70

(B) The Ordinary (Equity) Shares of the Company rank pari-passu in all respects including voting rights and entitlement to dividend.

(C) Details of Ordinary (Equity) Shares held by shareholders holding more than 5% of the aggregate shares in the Company :

2016 2015
Name of the Shareholder
No. of shares % shareholding No. of shares % shareholding

(i) Life Insurance Corporation of India .......................... 7,72,50,271 12.44 7,82,03,359 12.59

(ii) Prudential Management and Services Pvt. Ltd. ...... 7,07,60,970 11.39 7,07,60,970 11.39

(iii) M&M Benefit Trust ..................................................... 5,18,35,214 8.35 5,18,35,214 8.35

(iv) The Bank of New York Mellon (for GDR holders) .... 3,45,30,583 5.56 3,34,13,833 5.38

(D) Issued and Subscribed Share Capital includes an aggregate of 40,647 (2015 : 40,647) Ordinary (Equity) Shares of Rs. 5 each allotted as
fully paid-up pursuant to Schemes of Arrangement without payment having been received in cash, for a period of five years immediately
preceding the end of the financial year.

162 Annual Report 2015-16

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3. Reserves and Surplus : (contd.)

Rupees crores
2016 2015
(A) Capital Reserve :
Balance as at the beginning of the year ..................................................................................... 10.13 10.13
Balance as at the end of the year................................................................................................ 10.13 10.13

(B) Securities Premium Account :

Balance as at the beginning of the year ..................................................................................... 2,538.74 2,493.04
Add :
On account of exercise of employee stock options ................................................................... 52.09 45.77
2,590.83 2,538.81
Less :
Writing-off of debenture issue expenses [Net of Tax of Rs. 0.02 crores (2015 :
Rs. 0.03 crores)] .............................................................................................................................. 0.03 0.07
2,590.80 2,538.74

Less :
Premium on shares issued to ESOP Trust but not allotted to employees [Note 3(K)] .......... 256.78 258.30

Balance as at the end of the year................................................................................................ 2,334.02 2,280.44

(C) Revaluation Reserve :

Balance as at the beginning of the year ..................................................................................... 10.79 10.79

Balance as at the end of the year................................................................................................ 10.79 10.79

(D) General Reserve :

Balance as at the beginning of the year ..................................................................................... 1,729.63 1,705.55
Add :
On account of employee stock options*..................................................................................... — 24.00
On account of employee stock options lapsed .......................................................................... 0.23 0.08
1,729.86 1,729.63

Add :
Bonus shares issued to ESOP Trust but not allotted to employees [Note 3(K)] ..................... 0.50 0.81
Balance as at the end of the year................................................................................................ 1,730.36 1,730.44

* relating to shares other than those allotted by the Company to the ESOP Trust

(E) Debenture Redemption Reserve :

Balance as at the beginning of the year ..................................................................................... 105.01 88.22
Add :
Transfer from Surplus in Statement of Profit and Loss ............................................................. 2.50 16.79
107.51 105.01
Less :
Transfer to Surplus in Statement of Profit and Loss .................................................................. 100.01 —
Balance as at the end of the year ............................................................................................... 7.50 105.01

Mahindra & Mahindra Limited 163

3. Reserves and Surplus : (contd.)
Rupees crores
2016 2015
(F) Investment Fluctuation Reserve* [Note 37 and 39] :
Balance as at the beginning of the year ..................................................................................... 64.59 130.74
Add :
Provision no longer required written back................................................................................. 61.48 267.47

126.07 398.21
Less :
Utilisation during the year............................................................................................................ 126.07 333.62

Balance as at the end of the year................................................................................................ — 64.59

* pursuant to Schemes of Arrangement/Amalgamation approved by the Honourable

High Courts

(G) Hedging Reserve Account :

Balance as at the beginning of the year ..................................................................................... (18.53) (26.31)
Net movement, on hedging instruments, designated and effective as hedges and
transfers to statement of profit and loss on occurrence of forecasted hedge transactions
(Net of tax of Rs. 11.04 crores (2015 : Rs. 3.74 crores)) ............................................................ 20.87 7.78

Balance as at the end of the year................................................................................................ 2.34 (18.53)

(H) Employee Stock Options Outstanding :

Balance as at the beginning of the year ..................................................................................... 142.79 223.11
Add :
On account of options granted during the year ........................................................................ 357.05 —

499.84 223.11
Less :

Transfer to Securities Premium Account on exercise of options during the year .................. 52.09 45.77

Transfer to General Reserve on account of employee stock options* .................................... — 24.00

For options lapsed/forfeited during the year ............................................................................ 3.76 10.55

Balance as at the end of the year................................................................................................ 443.99 142.79

Less :
Deferred Employee Compensation Expense .............................................................................. 296.07 36.20

Balance as at the end of the year................................................................................................ 147.92 106.59

* relating to shares other than those allotted by the Company to the ESOP Trust

164 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

3. Reserves and Surplus : (contd.)

Rupees crores
2016 2015
(I) Foreign Currency Monetary Item Translation Difference Account :
Balance as at the beginning of the year ................................................................................... (79.58) (121.01)
Add :
Arising on revaluation of long term monetary assets and liabilities (net) ............................. (82.41) (41.86)

(161.99) (162.87)
Less :
Amortisation during the year....................................................................................................... 157.04 83.29

Balance as at the end of the year................................................................................................ (4.95) (79.58)

(J) Surplus in Statement of Profit and Loss :

Balance as at the beginning of the year ..................................................................................... 14,749.51 12,324.71
Add :
Profit for the year .......................................................................................................................... 3,167.48 3,321.11
Transfer from Debenture Redemption Reserve.......................................................................... 100.01 —
Reversal of income tax on dividend paid for 2013-14 ............................................................... — 2.80

18,017.00 15,648.62

Less :
Transfer to Debenture Redemption Reserve .............................................................................. 2.50 16.79
Depreciation on transitional provision as specified in Schedule II of the Companies Act,
2013 - [Net of Tax of Rs. Nil crores (2015 : Rs. 18.24 crores)] ................................................... — 35.43
Proposed Dividend [Rs. 12.00 per share (2015 : Rs. 12.00 per share)] .................................... 745.31 745.31
Income-tax on Proposed Dividend............................................................................................... 96.37 101.58
Income-tax on dividend paid for 2014-15 ................................................................................... 0.06 —

Balance as at the end of the year................................................................................................ 17,172.76 14,749.51

Total Reserves and Surplus .......................................................................................................... 21,410.87 18,959.39

(K) The Guidance Note on Accounting for Employee Share-based Payments issued by The Institute of Chartered Accountants of India
requires that shares allotted to a Trust but not transferred to employees be reduced from Share Capital and Reserves and Surplus.
Accordingly, the Company has reduced the Share Capital by Rs. 13.73 crores (2015 : Rs. 14.04 crores) and Securities Premium Account by
Rs. 256.78 crores (2015 : Rs. 258.30 crores) for the 2,74,61,619 shares of Rs. 5 each (2015 : 2,80,82,384 shares of Rs. 5 each) held by the
Trust pending transfer to the eligible employees.
The Share Capital of the Company has also been reduced and the General Reserve increased by Rs. 0.50 crores (2015 : Rs. 0.81 crores)
for the 9,96,958 bonus shares of Rs. 5 each (2015 : 16,17,722 bonus shares of Rs. 5 each) issued by the Company in September, 2005 to
the Trust but not yet transferred by the Trust to the employees.
The above monies which are treated as advance received from the Trust, is included under Other Current Liabilities and Other Long Term
Liabilities.

Mahindra & Mahindra Limited 165

4. Long Term Borrowings :

Rupees crores
2016 2015
Unsecured :
(i) Debentures .................................................................................................................................... 500.00 500.00
(ii) Term Loans from Banks ................................................................................................................ — 937.50
(iii) Fixed Deposits ............................................................................................................................... — 21.69
(iv) Other Loans ................................................................................................................................... 995.42 1,054.94

1,495.42 2,514.13

Debentures are Senior Redeemable Non-Convertible Debentures carrying an interest rate of 9.55% with a tenure of 50 years, repayable in
July, 2063.

(a) Term loans from banks comprise of :

USD External Commercial Borrowings carrying an average margin of 142 basis points over three month USD Libor and are repayable after
five years and one day from the date of respective availment of loan. Rs. 662.55 crores payable in August, 2016 and Rs. 331.28 crores
payable in September, 2016 are shown under current maturities of long term borrowings.

Fixed deposits are repayable three years from the date of deposit and carry an interest rate of 9.75%. Rs. 21.36 crores is shown under
current maturities of long term borrowings.

(b) Other loans comprise deferred sales tax loans which are interest free and repayable in five equal installments after ten years from the
year of availment of respective loan. These loans are repayable :
Rupees crores
2016 2015
(i) In the second year ................................................................................................................ 79.72 59.51
(ii) In the third to fifth year ...................................................................................................... 339.92 269.89
(iii) After five years...................................................................................................................... 575.78 725.54

995.42 1,054.94

(c) Current maturities in respect of long term borrowings have been included in Note 10 as under :
Rupees crores
2016 2015
(i) Debentures/Bonds ................................................................................................................ 0.01 133.34
(ii) Term Loans from Banks ........................................................................................................ 993.83 937.50
(iii) Fixed Deposits ....................................................................................................................... 21.36 36.62
(iv) Other Loans ........................................................................................................................... 58.17 0.62

1,073.37 1,108.08

166 Annual Report 2015-16

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Overview Report and Analysis Governance Report Accounts Accounts

5. Deferred Tax Liabilities (Net) :

The components of Deferred Tax Liabilities and Assets are as under :
Rupees crores
2016 2015
Deferred Tax Liabilities :
(i) On fiscal allowances on fixed assets............................................................................................ 1,527.32 1,241.41
(ii) Others.............................................................................................................................................. 22.72 49.31

1,550.04 1,290.72

Deferred Tax Assets :

(i) On provision for employee benefits ............................................................................................ 188.64 200.49
(ii) On provision for doubtful debts/advances ................................................................................. 38.52 23.83
(iii) Others.............................................................................................................................................. 75.37 86.70

302.53 311.02

Net Deferred Tax Liabilities ................................................................................................................... 1,247.51 979.70

6. Other Long Term Liabilities :

Rupees crores
2016 2015
Trade Payables ........................................................................................................................................ 23.66 25.69
Others ...................................................................................................................................................... 572.75 588.65

596.41 614.34

Others include dealer deposits, advance from customers, payable for investments, gratuity payable and monies adjusted from share capital
and reserves and surplus on account of shares held by ESOP Trust pending transfer to the eligible employees.

7. Long Term Provisions :

Rupees crores
2016 2015
Provision for Employee Benefits ........................................................................................................... 455.38 430.50
Provision for Warranty [Note 32] ......................................................................................................... 216.76 176.84

672.14 607.34

8. Short Term Borrowings :

Rupees crores
2016 2015
Unsecured :
Term Loan from Bank ............................................................................................................................ 348.13 106.25

348.13 106.25

Term loan from banks consist of Export packing credit facility carrying interest rate of 0.3315% and Rupee packing credit facility under
interest equalization scheme carrying fixed interest rate ranging from 5.15% to 5.75%. These loans are repayable within a year from the date
of availment of loan.

Mahindra & Mahindra Limited 167

9. Trade Payables :
Rupees crores
2016 2015
Acceptances............................................................................................................................................. 656.11 575.43
Trade Payables – Micro and Small enterprises .................................................................................... 121.74 79.53
Trade Payables – Other than Micro and Small enterprises ................................................................ 5,985.78 4,710.49

6,763.63 5,365.45

Micro, Small and Medium enterprises have been identified by the Company on the basis of the information available. Total outstanding dues
of Micro and Small enterprises, which are outstanding for more than the stipulated period are given below :
Rupees crores
2016 2015
(a) Dues remaining unpaid as at 31st March
Principal........................................................................................................................................... 39.45 54.95
Interest on the above ................................................................................................................... 0.50 0.56
(b) Interest paid in terms of Section 16 of the Micro, Small and Medium Enterprises
Development Act, 2006 (hereinafter referred to as “the Act”), along with the amount of
payment made to the supplier beyond the appointed day during the year
Principal paid beyond the appointed date ................................................................................. 690.76 564.84
Interest paid in terms of Section 16 of the Act ......................................................................... 3.00 2.39
(c) Amount of interest due and payable for the period of delay on payments made beyond
the appointed day during the year ............................................................................................ 3.11 2.97
(d) Further interest due and payable even in the succeeding years, until such date when the
interest due as above are actually paid to the small enterprises ........................................... 1.17 1.18
(e) Amount of interest accrued and remaining unpaid as at 31st March ...................................... 4.78 4.71

10. Other Current Liabilities :

Rupees crores
2016 2015
Current Maturities of Long Term Borrowings ..................................................................................... 1,073.37 1,108.08
Advance from Customers ...................................................................................................................... 412.08 255.04
Interest accrued but not due on borrowings ..................................................................................... 6.66 18.31
Dividend Payable .................................................................................................................................... 15.48 14.59
Unclaimed Matured Deposits................................................................................................................ 0.97 0.79
Others ...................................................................................................................................................... 734.01 644.32
2,242.57 2,041.13

Others mainly include capital creditors, government dues and taxes payable, gratuity payable and salary deductions payable.
There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund.

11. Short Term Provisions :

Rupees crores
2016 2015
Provision for Employee Benefits ........................................................................................................... 107.18 168.87
Provision for Warranty [Note 32] ......................................................................................................... 200.64 193.34
Proposed Dividend ................................................................................................................................. 745.31 745.31
Provision for Tax on Proposed Dividend.............................................................................................. 96.37 101.58
Provision for Taxation ............................................................................................................................ 189.84 252.34
1,339.34 1,461.44

168 Annual Report 2015-16

 12. Fixed Assets :
(A) Tangible Assets :
Rupees crores
Overview
Company

Description of Assets Cost/ Additions Other Deductions and Cost/ Accumulated Depreciation as Depreciation Deductions and Accumulated Net Balance as
Professional during the adjustments adjustments Professional Depreciation per transitional for adjustments of Depreciation at 31st March,
valuation as year during the year during the year valuation as at upto 31st provision 2015-2016 Depreciation upto 31st 2016
at 31st March, 31st March, March, 2015 specified in March, 2016
2015 2016 Schedule II of
the Companies
Act, 2013
Land – Freehold................ 267.22 0.57 — 0.03 267.76 — — — — — 267.76
Report

264.62 2.60 — — 267.22 — — — — — 267.22

Board’s

Land – Leasehold ............. 107.50 7.94 — — 115.44 7.45 — 1.10 — 8.55 106.89
63.34 44.16 — — 107.50 6.37 — 1.08 — 7.45 100.05
Buildings ............................ 1,514.18 140.34 7.30 7.15 1,654.67 337.20 — 43.94 4.07 377.07 1,277.60
1,425.28 85.17 4.63 0.90 1,514.18 292.87 3.21 41.36 0.24 337.20 1,176.98
Plant and Equipment ....... 8,405.37 1,718.63 69.75 267.79 9,925.96 4,511.82 — 774.02 242.75 5,043.09 4,882.87
7,689.00 719.63 34.58 37.84 8,405.37 3,833.18 32.09 681.50 34.95 4,511.82 3,893.55
Office Equipment ............. 99.40 15.20 0.25 11.81 103.04 61.24 — 14.15 10.12 65.27 37.77
87.04 12.82 0.17 0.63 99.40 32.85 13.02 15.96 0.59 61.24 38.16
and Analysis

Furniture and Fixtures ..... 176.43 17.32 0.13 15.38 178.50 100.15 — 16.87 13.50 103.52 74.98
165.19 12.50 0.10 1.36 176.43 79.19 3.30 18.90 1.24 100.15 76.28
Aircraft .............................. 103.46 — — — 103.46 17.01 — 4.81 — 21.82 81.64
103.46 — — — 103.46 12.20 — 4.81 — 17.01 86.45
Management Discussion

Vehicles.............................. 302.33 81.48 0.04 44.86 338.99 145.58 — 56.81 36.49 165.90 173.09
274.00 53.79 0.02 25.48 302.33 108.97 2.05 53.54 18.98 145.58 156.75
10,975.89 1,981.48 77.47 347.02 12,687.82 5,180.45 — 911.70 306.93 5,785.22 6,902.60
10,071.93 930.67 39.50 66.21 10,975.89 4,365.63 53.67 817.15 56.00 5,180.45 5,795.44
Corporate

(B) Intangible Assets (acquired, unless otherwise stated) :

Governance

Rupees crores
Description of Assets Cost/ Additions Other Deductions and Cost/ Accumulated Amortisation Amortisation Deductions and Accumulated Net Balance as
Professional during the adjustments adjustments Professional Amortisation as per for adjustments of Amortisation at 31st March,
valuation as year during the year during the year valuation as at upto 31st transitional 2015—2016 Amortisation upto 31st 2016
at 31st March, 31st March, March, 2015 provision March, 2016
2015 2016 specified in
Schedule II of
the Companies
Report

Act, 2013
Technical Knowhow ......... — — — — — — — — — — —
2.58 — — 2.58 — 2.58 — — 2.58 — —
Development Expenditure – 646.29 1,090.62 8.38 246.60 1,498.69 536.79 — 177.55 246.60 467.74 1,030.95
Internally Generated........ 606.90 97.27 0.03 57.91 646.29 460.68 — 134.02 57.91 536.79 109.50
Computer Software ......... 73.53 14.02 — 21.49 66.06 54.13 — 17.01 21.49 49.65 16.41
Business Responsibility

75.38 20.35 — 22.20 73.53 56.85 — 19.48 22.20 54.13 19.40

Others ................................ 42.80 0.13 — — 42.93 37.68 — 2.35 — 40.03 2.90
39.33 3.47 — — 42.80 33.43 — 4.25 — 37.68 5.12
762.62 1,104.77 8.38 268.09 1,607.68 628.60 — 196.91 268.09 557.42 1,050.26
Accounts

724.19 121.09 0.03 82.69 762.62 553.54 — 157.75 82.69 628.60 134.02
Standalone

Notes :
(a) Other adjustments during the year comprise of difference in exchange and interest capitalised.
(b) Buildings include Rs. * crores (2015 : Rs. * crores) being the value of shares in co-operative housing societies.
(c) In accordance with the requirements of Companies Act, 2013, the company has effective 1st April, 2014 reviewed and revised the estimated useful lives of its fixed assets generally in accordance with the provisions of Schedule II of the
Companies Act, 2013 (refer Note 1 (b)(ii)). Consequently, in respect of assets, whose useful life is exhausted as at 1st April, 2014, the related carrying amount aggregating to Rs. Nil crores (2015: Rs. 35.43 crores) (net of deferred tax of

Mahindra & Mahindra Limited

Accounts

Rs. Nil crores (2015: Rs. 18.24 crores)) was adjusted against opening balance of Surplus in the Statement of Profit and Loss in the previous year.
(d) Intangible - Others include congeries of rights, non compete fees, trade mark etc.
Consolidated

* denotes amounts less than Rs. 50,000

169
Current year figures are in bold.
13. (A) Non Current Investments : (contd.)
2016 2015
Face Value
Per Unit Long Term Long Term
(Rupees) Number Rupees crores Number Rupees crores

Investments (At Cost, unless otherwise specified) :

Investments in Equity Instruments (Trade and fully paid-up unless
otherwise specified) :
Unquoted
(i) In Subsidiary Companies
Mahindra Engineering and Chemical Products Limited ......................... 10 6,52,98,462 604.82 4,84,98,462 436.82
Mahindra Intertrade Limited [including 1,50,00,000 shares partly
paid-up Rs. 3 per share] ............................................................................. 10 — — 2,71,00,006 16.60
Mahindra USA Inc. .................................................................................... + US $ 0.25 5,60,00,000 66.37 5,60,00,000 66.37
Mahindra Gujarat Tractor Limited ............................................................ + 10 16,83,218 3.55 16,83,218 3.55
Mahindra Agri Solutions Limited (formerly known as Mahindra
Shubhlabh Services Limited) ...................................................................... 10 1,34,14,514 18.09 1,22,12,400 12.37
Mahindra First Choice Wheels Limited ..................................................... + 10 3,35,96,424 45.83 3,35,96,424 45.83
Bristlecone Limited .................................................................................... US $ 0.001 42,22,250 19.26 42,22,250 19.26
Mahindra and Mahindra South Africa (Proprietary) Limited ................ + ZAR 1 5,20,00,000 28.54 5,20,00,000 28.54
Mahindra Overseas Investment Company (Mauritius) Limited ............. + US $ 1 11,54,87,709 598.72 10,15,39,039 505.75
Mahindra Automobile Distributor Private Limited ................................ 10 7,40,000 0.31 7,40,000 0.31
Mahindra Trucks and Buses Limited ........................................................ + 0.20 114,79,25,600 74.12 114,79,25,600 74.12
Mahindra Vehicle Manufacturers Limited .............................................. + 10 316,22,50,000 3,162.25 96,22,50,000 962.25
Mahindra Logistics Limited ........................................................................ + 10 5,14,78,330 51.48 5,14,78,330 51.48
Mahindra Heavy Engines Limited (formerly known as Mahindra Heavy
Engines Private Limited) ............................................................................. 10 — — 50,80,00,000 439.28
Mahindra Aerospace Private Limited........................................................ + 10 15,35,34,824 289.94 15,35,34,824 289.94
Mahindra First Choice Services Limited .................................................... 10 23,43,00,000 234.30 19,19,00,000 191.90
Mahindra Holdings Limited ....................................................................... 10 17,91,86,535 179.19 9,65,86,534 96.59
Mahindra Consulting Engineers Limited .................................................. 10 11,51,000 1.25 11,51,000 1.25
NBS International Limited .......................................................................... 10 95,50,490 14.57 50,490 5.07
Mahindra Two Wheelers Limited .............................................................. 10 — — 186,20,97,350 1,862.10
Mahindra Automotive Australia Pty. Limited .......................................... AUD 1 45,75,000 21.16 45,75,000 21.16
Defence Land Systems India Limited ........................................................ + 10 11,10,00,000 111.00 11,10,00,000 111.00
Mahindra Reva Electric Vehicles Limited (formerly known as Mahindra
Reva Electric Vehicles Private Limited) ..................................................... 10 — — 2,70,20,466 380.16
Mahindra Defence Systems Limited .......................................................... 10 84,62,005 98.75 71,69,294 74.65
Mahindra Sanyo Special Steel Private Limited ........................................ + 10 55,35,365 232.18 51,00,000 214.33
Mahindra 'Electoral Trust' Company ........................................................ 10 50,000 0.05 50,000 0.05
Mahindra HZPC Private Limited ............................................................... 10 47,30,000 4.73 47,30,000 4.73
Mahindra eMarket Limited (formerly known as Mriyalguda Farm
Solution Limited) ......................................................................................... 10 3,59,865 0.36 3,59,865 0.36
Swaraj Automotives Limited ...................................................................... 10 — — 17,06,925 18.28
Orizonte Business Solutions Limited (formerly known as Mega One
Stop Farm Services Limited) ....................................................................... 10 57,80,000 5.35 — —
5,866.17 5,934.10
(ii) In Associate Companies
Officemartindia.com Limited ..................................................................... 10 7,49,997 0.22 7,49,997 0.22
Mahindra Construction Company Limited ............................................... 10 9,00,000 0.97 9,00,000 0.97
Orizonte Business Solutions Limited (formerly known as Mega One
Stop Farm Services Limited) ....................................................................... 10 — — 3,51,000 0.35
Kota Farm Services Limited ........................................................................ 10 2,73,420 0.27 2,73,420 0.27
Mahindra & Mahindra Contech Limited................................................... 10 35,000 0.04 35,000 0.04
PSL Media & Communications Limited ..................................................... 5 19,750 0.01 19,750 0.01
1.51 1.86

170 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

13. (A) Non Current Investments : (contd.)

2016 2015
Face Value
Per Unit Long Term Long Term
(Rupees) Number Rupees crores Number Rupees crores
(iii) In Joint Venture Company
Mahindra Sona Limited .............................................................................. + 10 32,75,000 1.64 13,10,000 1.64
Mitsubishi Mahindra Agricultural Machinery Co., Limited .................... +
– Equity share .............................................................................................. NA 1 42.53 — —
– Class A Shares ........................................................................................... NA 3 127.60 — —

171.77 1.64

(iv) In Other Companies (Non-trade and fully paid-up unless otherwise

specified)
Montreal Engineering International Limited........................................... 100 312 * 312 *
Machinery Manufacturers Corporation Limited...................................... + 10 8,55,646 0.94 8,55,646 0.94
Judricks (India) Private Limited ................................................................. 10 1,00,000 0.10 1,00,000 0.10
NTTF Industries Limited.............................................................................. 10 75,000 0.15 75,000 0.15
Indian NGOs.com Private Limited ............................................................. 10 50,000 0.06 50,000 0.06
Sixth Sense Studios Private Limited ......................................................... 10 20,000 0.02 20,000 0.02
Utility Engineers (India) Limited ............................................................... 10 2,85,000 0.28 2,85,000 0.28
Business Standard Limited ......................................................................... 10 5,00,000 0.09 5,00,000 0.09
New Tirupur Area Development Corporation Limited ........................... + 10 75,00,000 7.50 75,00,000 7.50
Triton Overwater Transport Agency Limited ........................................... 10 4,98,000 0.58 4,98,000 0.58
Hadoti Krishi Vihar Private Limited .......................................................... 100 1,000 0.01 1,000 0.01
Harsolia Agri Sales and Services Private Limited..................................... 10 30,000 0.03 30,000 0.03
Yadgiri Farm Solutions Private Limited .................................................... 100 200 * 200 *
Srinivasa Farm Solutions Private Limited.................................................. 10 2,000 * 2,000 *
Farm Vision Agri-Tech Private Limited...................................................... 10 15,180 0.01 15,180 0.01
Sowbhagya Krishi Vikas Private Limited .................................................. 10 20,000 0.02 20,000 0.02
Bhuvi Care Private Limited ......................................................................... 100 1,800 0.02 1,800 0.02
Richfield Crop Solutions India Private Limited ........................................ 10 6,000 0.01 6,000 0.01
Covai Crop Care India Private Limited ..................................................... 10 6,000 0.01 6,000 0.01
Manjara Agri Tech Private Limited............................................................ 10 8,000 0.01 8,000 0.01
Sai Wardha Power Limited : Class 'A' Equity Shares (Trade Investment) + 10 19,45,867 1.95 19,45,867 1.95
New Democratic Electoral Trust ............................................................... 10 1,000 * 1,000 *
Others @ * *

11.79 11.79
Quoted
(i) In Subsidiary Companies
Mahindra Lifespace Developers Limited .................................................. 10 2,08,46,126 276.94 2,08,46,126 276.94
Mahindra & Mahindra Financial Services Limited .................................. 2 29,12,07,660 150.91 29,12,07,660 150.91
Mahindra Holidays & Resorts India Limited ........................................... 10 6,65,85,642 27.46 6,65,85,642 27.46
Ssangyong Motor Company (Listed on a Stock Exchange outside India) + KRW 5000 9,99,64,502 2,133.94 9,99,64,502 2,133.94
EPC Industrie Limited.................................................................................. 10 1,51,44,433 77.75 1,51,44,433 77.75
2,667.00 2,667.00

* denotes amounts less than Rs. 50,000

Mahindra & Mahindra Limited 171

13. (A) Non Current Investments : (contd.)
2016 2015
Face Value
Per Unit Long Term Long Term
(Rupees) Number Rupees crores Number Rupees crores
(ii) In Associate Companies
Swaraj Engines Limited............................................................................... 10 41,26,417 1.63 41,26,417 1.63

Mahindra CIE Automotive Limited............................................................ 10 — — 6,52,71,407 531.48

Tech Mahindra Limited ............................................................................... 5 25,62,48,704 1,003.98 25,62,48,704 1,003.98

1,005.61 1,537.09

(iii) In Other Companies (Non-trade and fully paid-up)

Jardine Henderson Limited ........................................................................ 100 25 * 25 *

IDBI Bank Limited........................................................................................ 10 2,85,440 2.29 2,85,440 2.29

2.29 2.29

Investments in Equity Instruments 9,726.14 10,155.77

Investments in Preference Shares (Trade and fully paid-up unless otherwise

specified) :

Unquoted

(i) In Subsidiary Companies

Series 'A' Preference Shares : Bristlecone Limited................................... US $ 0.001 77,75,147 31.72 77,75,147 31.72

Series 'B' Preference Shares : Bristlecone Limited .................................. US $ 0.001 69,20,000 15.13 69,20,000 15.13

5% Non-Cumulative Compulsory Convertible Preference Shares :

Mahindra Aerospace Private Limited........................................................ 10 50,00,000 5.00 50,00,000 5.00

51.85 51.85

(ii) In Associate Company

10.00% Non-Cumulative Redeemable Participating Preference Shares :
Mahindra Construction Company Limited ............................................... 100 5,40,000 5.40 5,40,000 5.40

5.40 5.40

(iii) In Other Companies (Non-trade and fully paid-up unless otherwise

specified)

4.00% Tax-free Cumulative Preference Shares : Machinery

Manufacturers Corporation Limited ......................................................... + 100 2,296 0.02 2,296 0.02

11.00% Redeemable Preference Shares : Sixth Sense Studios Private

Limited.......................................................................................................... 100 1,78,000 1.78 1,78,000 1.78

8.00% Non-Cumulative Redeemable Preferred Stock : Prana Holdings

Inc. USA ........................................................................................................ + 23,00,423 13.83 23,00,423 13.83

0.01% Class 'A' Redeemable Preference Shares : Sai Wardha Power

Limited (Trade Investment) ........................................................................ + 10 24,54,133 2.45 24,54,133 2.45

18.08 18.08

Investments in Preference Shares ........................................................................ 75.33 75.33

* denotes amounts less than Rs. 50,000

172 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

13. (A) Non Current Investments : (contd.)

2016 2015
Face Value
Per Unit Long Term Long Term
(Rupees) Number Rupees crores Number Rupees crores
Investments in Government/Trust Securities :
Unquoted, other than Trade

(i) Government Securities

6 Years National Savings Certificates ....................................................... 12,000^ * 12,000^ *

* *

(ii) Trust Securities

Sunrise Initiatives Trust............................................................................... 114.30 114.30

M&M Benefit Trust ..................................................................................... 1,459.77 1,459.77

Mahindra World Motor Driving School Trust .......................................... 0.01 0.01

M&M Fractional Entitlement Trust ........................................................... 0.01 0.01

1,574.09 1,574.09

Investments in Government/Trust Securities ................................................... 1,574.09 1,574.09

Investments in Debentures/Bonds (Non-trade and fully paid-up unless

otherwise specified) :
Unquoted
In Other Company
0.50% Bond: The East India Clinic Limited ....................................................... 100 13 * 13 *
* *
Investments in Debentures/Bonds .................................................................... * *
Other Non Current Investments
Unquoted
Investment in Alternate Investment Fund
Class A Units: Faering Capital India Evolving Fund II (A SEBI Category II
AIF) ......................................................................................................................... ++ 1,000 15,000 1.50 — —

Other Non Current Investments ........................................................................ 1.50 —

Total Non Current Investments (Gross) ............................................................ 11,377.06 11,805.19

Less : Provision for diminution in value of investments ................................... (232.41) (432.45)
Total Non Current Investments (Net) ................................................................ 11,144.66 11,372.74
Other Disclosures
(i) Aggregate amount of quoted investments (Gross) ................................ 3,674.90 4,206.38
Market Value of quoted investments (includes Rs. 4,801.44 crores
(2015 : Rs. 5,111.76 crores) in respect of investment listed on a Stock
Exchange outside India) ............................................................................. 28,035.30 33,312.06
(ii) Aggregate amount of unquoted investments (Gross) ........................... 7,702.16 7,598.81

Notes :
@ Shares (unquoted) in other companies comprise :
# The United Spices Importers Limited (Equity 'B' Shares) ............. 100 21 * 21 *
# Engineering & Metal Works, Tehran ............................................... Rials 16,667 74 * 74 *
* *

# Written off to Re. 1

+ Equity investments in these companies carry certain restrictions on transfer of shares due to contractual or regulatory restrictions
++ Investments in units of Alternate Investment Fund carry certain restrictions on transfer due to contractual restrictions
^ Total Face Value
* denotes amounts less than Rs. 50,000

Mahindra & Mahindra Limited 173

13. (B) Current Investments (At Cost, unless otherwise specified) : (contd.)

Face Value Per 2016 2015

Unit (Rupees) Number Rupees crores Number Rupees crores
Investments in Equity Instruments (Non-trade and fully paid-up) :
Quoted
In Other Company
Power Trading Corporation of India Limited............................................. 10 900 * 900 *

Investments in Equity Instruments....................................................................... * *

Investments in Government Securities :

Quoted
(i) Government of India Securities ................................................................... 100 1,92,700 1.91 1,92,700 1.91
(ii) 1.44% Inflation Indexed Government Stock, 2023 ................................... 100 — — 10,00,000 10.87

1.91 12.78
Less : Adjustment of cost as lower than fair value, by category ............ — (2.85)
Investments in Government Securities .............................................................. 1.91 9.93

Investments in Debentures/Bonds (Non-trade and fully paid-up) :

Quoted

In Others
6.70% Bond Indian Railway Finance Corporation Limited....................... 100,000 500 5.00 500 5.00
6.30% Bond Indian Railway Finance Corporation Limited ...................... 100,000 1,000 10.00 1,000 10.00
6.05% Bond Indian Railway Finance Corporation Limited ...................... 100,000 — — 500 5.00
6.32% Bond Indian Railway Finance Corporation Limited ...................... 100,000 500 5.00 500 5.00
6.72% Bond Indian Railway Finance Corporation Limited....................... 100,000 1,000 10.00 1,000 10.00
8.20% Bond National Highway Authority of India................................... 1,000 1,23,619 12.37 1,23,619 12.37

Investments in Debentures/Bonds ...................................................................... 42.37 47.37

Investments in Mutual Funds :

Unquoted

Axis Mutual Fund - Banking Debt Fund - Direct Plan - Growth ............. 1,000 3,26,052 45.25 1,95,833 25.00

Axis Mutual Fund - Liquid Fund - Direct Growth ..................................... 1,000 9,23,656 155.00 — —

Birla Sun life Mutual Fund - Cash Plus - Growth....................................... 100 66,00,325 160.00 — —

Birla Sun Life Mutual Fund - Savings Fund - Growth - Direct ................. 100 13,72,334 40.23 — —

BOI AXA Mutual Fund - Liquid Fund - Direct Plan - Growth .................. 1,000 28,679 5.00 — —

Canara Robeco Mutual Fund - Savings Plus Fund - Direct Growth......... 10 1,06,30,212 25.12 — —

HDFC Mutual Fund - Floating Rate Income Fund - Short Term Plan -
Direct Plan - Wholesale Option - Growth Option..................................... 10 2,51,00,275 65.34 2,09,65,767 50.00

ICICI Prudential Mutual Fund - Money Market Fund - Growth............... 100 83,75,117 175.00 — —

ICICI Prudential Mutual Fund - Savings Fund - Direct Plan - Growth ..... 100 11,01,843 25.21 — —

IDFC Mutual Fund - Cash Fund - Growth - (Direct Plan).......................... 1,000 10,87,705 200.00 — —

* denotes amount less than Rs. 50,000

174 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

13. (B) Current Investments (At Cost, unless otherwise specified) : (contd.)

Face Value Per 2016 2015

Unit (Rupees) Number Rupees crores Number Rupees crores

JM Financial Mutual Fund - High Liquidity Fund - Growth option ........ 10 12,11,637 5.00 — —

Kotak Mutual Fund - Floater Short Term - Growth (Regular Plan) ........ 1,000 5,44,655 135.00 — —

Kotak Mutual Fund - Treasury Advantage Fund - Direct Plan - Growth .. 10 2,68,90,467 65.31 — —

L&T Mutual Fund - Liquid Fund - Growth .................................................. 1,000 4,82,690 100.00 — —

LIC Nomura Mutual Fund - Savings Plus Fund - Direct - Growth Plan ... 10 85,41,699 20.15 — —

Principal Mutual Fund - Cash Management Fund - Direct Plan - Growth 1,000 1,69,742 25.00 — —

Reliance Mutual Fund - Medium Term Fund - Direct Plan - Growth ...... 10 79,55,980 25.17 — —

SBI Mutual Fund - Ultra Short Term Debt Fund - Direct Plan - Growth 1,000 2,32,034 45.14 2,79,743 50.00

Sundaram Mutual Fund - Money Fund Regular Growth.......................... 10 2,51,14,112 80.00 2,37,63,129 70.00

Sundaram Mutual Fund - Ultra Short Term Fund Direct Plan - Growth 10 96,13,129 20.10 1,56,23,617 30.00

Tata Mutual Fund - Money Market Fund Regular Plan - Growth ........... 1,000 4,28,816 101.99 — —

UTI Mutual Fund - Floating Rate Fund - Short Term Plan - Direct Growth 1,000 1,01,398 25.19 — —

UTI Mutual Fund - Money Market Fund - Institutional Plan - Growth 1,000 10,34,581 175.00 — —

Axis Mutual Fund - Liquid Fund - Growth ................................................. 1,000 — — 8,07,733 125.00

Baroda Pioneer Mutual Fund - Treasury Advantage Fund - Plan B -

Growth ........................................................................................................... 1,000 — — 1,56,965 25.00

Birla Sun Life Mutual Fund - Floating Rate Fund Short Term Plan -
Growth - Regular Plan .................................................................................. 100 — — 1,07,55,695 200.00

BOI AXA Mutual Fund - Liquid Fund - Regular Plan - Growth ............... 1,000 — — 31,115 5.00

DSP BlackRock Mutual Fund - Liquidity Fund - Institutional Plan -

Growth ........................................................................................................... 1,000 — — 10,01,310 200.01

ICICI Prudential Mutual Fund - Liquid Plan - Regular - Growth.............. 100 — — 79,80,240 165.00

ICICI Prudential Mutual Fund - Ultra Short Term Plan - Direct Plan -
Growth ........................................................................................................... 10 — — 2,45,93,159 35.00

IDFC Mutual Fund - Cash Fund - Growth - (Regular Plan) ....................... 1,000 — — 9,72,390 165.00

IDFC Mutual Fund - Money Manager Fund - Treasury Plan - Growth -

Direct Plan...................................................................................................... 10 — — 1,58,63,016 35.00

JM Financial Mutual Fund - Floater Long Term Fund - (Direct) - Growth

Option ............................................................................................................ 10 — — 1,17,26,354 25.00

Principal Mutual Fund - Cash Management Fund- Regular Plan -

Growth ........................................................................................................... 1,000 — — 1,84,209 25.00

SBI Mutual Fund - Premier Liquid Fund - Regular Plan - Growth ........... 1,000 — — 1,36,697 30.00

Tata Mutual Fund - Money Market Fund - Plan A - Growth ................... 1,000 — — 6,82,404 150.00

Taurus Mutual Fund - Liquid Fund - Existing Plan - Super Institutional

- Growth ......................................................................................................... 1,000 — — 1,65,405 25.00

Investments in Mutual Funds ................................................................................ 1,719.20 1,435.01

Mahindra & Mahindra Limited 175

13. (B) Current Investments (At Cost, unless otherwise specified) : (contd.)

Face Value Per 2016 2015

Unit (Rupees) Number Rupees crores Number Rupees crores
Other Investments :

Certificate of Deposits

Unquoted

Andhra Bank .................................................................................................. 100,000 7,500 72.55 5,000 49.76

Axis Bank Limited.......................................................................................... 100,000 2,500 23.62 10,000 98.72

Bank of Maharashtra .................................................................................... 100,000 5,000 48.62 — —

Corporation Bank .......................................................................................... 100,000 17,500 166.79 2,500 24.59

HDFC Bank Limited ....................................................................................... 100,000 2,500 24.67 — —

IDBI Bank Limited.......................................................................................... 100,000 6,500 61.52 — —

Indian Overseas Bank ................................................................................... 100,000 7,500 71.74 — —

State Bank of Hyderabad ............................................................................. 100,000 10,000 92.80 — —

Vijaya Bank .................................................................................................... 100,000 5,000 49.92 — —

Allahabad Bank ............................................................................................. 100,000 — — 7,600 75.51

Punjab National Bank ................................................................................... 100,000 — — 2,500 24.59

612.23 273.17
Less : Adjustment of cost as lower than fair value, by category ............ — (0.06)

Investments in Certificate of Deposits ............................................................... 612.23 273.11

Total Current Investments .................................................................................... 2,375.71 1,765.42

Other Disclosures

(i) Aggregate amount of quoted investments (Gross) .................................. 44.28 60.15

Market Value of quoted investments ......................................................... 44.67 58.09

(ii) Aggregate amount of unquoted investments (Gross) ............................. 2,331.43 1,708.18

(iii) Aggregate excess of cost over fair value, by category ............................ — 2.91

176 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

14. Long Term Loans and Advances :

Rupees crores
2016 2015
(A) Capital Advances :
Unsecured, considered good .................................................................... 400.34 583.35
Doubtful....................................................................................................... 2.54 2.99
402.88 586.34
Less : Provision for doubtful capital advances ....................................... 2.54 2.99
400.34 583.35
(B) Security Deposits :
Unsecured, considered good .................................................................... 38.28 38.43
Doubtful....................................................................................................... 0.19 0.19
38.47 38.62
Less : Provision for doubtful security deposits ........................................ 0.19 0.19
38.28 38.43
(C) Loans and Advances to Related Parties :
Unsecured, considered good .................................................................... 1,218.27 85.09
Doubtful....................................................................................................... 10.00 10.00
1,228.27 95.09
Less : Provision for doubtful loans and advances to related parties .... 10.00 10.00
1,218.27 85.09
(D) Other Loans and Advances :
Unsecured, considered good .................................................................... 2,400.55 2,525.39
Doubtful....................................................................................................... 9.19 —
2,409.74 2,525.39
Less : Provision for doubtful other loans and advances ........................ 9.19 —
2,400.55 2,525.39
4,057.44 3,232.26

(a) Long Term Loans and Advances to Related Parties includes :

(i) Share Application Money pending allotment Rs. Nil crores (2015 : Rs. 55.00 crores) to subsidiaries.
(ii) Loans to Subsidiary company Rs. 1,200.00 crores (2015 : Rs. Nil crores).
(iii) Capital Advances of Rs. Nil crores (2015 : Rs. 4.49 crores).
(iv) Loan to a Director of Rs. 5.80 crores (2015 : Rs. 1.09 crores).
(b) Other Loans and Advances includes :
(i) Payment towards income-tax and surtax Rs. 465.45 crores (2015 : Rs. 457.72 crores).
(ii) MAT Credit entitlement Rs. 718.89 crores (2015 : Rs. 666.87 crores).
(iii) VAT receivable, other recoverable expenses, prepaid expenses and advances to employees.
(c) Loans given to employees as per the Company’s policy are not considered for the purposes of disclosure under Section 186(4) of the
Companies Act, 2013.
15. Other Non Current Assets :
Rupees crores
2016 2015
(i) Export Benefits Receivable ........................................................................................................... 77.71 121.60
(ii) Others.............................................................................................................................................. 2.08 2.97
79.79 124.57
Considered Good .................................................................................................................................... 58.66 103.44
Doubtful .................................................................................................................................................. 21.13 21.13
79.79 124.57
Less :
Provision for doubtful other non current assets ................................................................................ 21.13 21.13
58.66 103.44

Mahindra & Mahindra Limited 177

16. Inventories :
Rupees crores
2016 2015
(i) Raw Materials and Bought-out Components [includes in transit Rs. 93.45 crores
(2015 : Rs. 83.16 crores)]................................................................................................................ 738.57 748.06
(ii) Work-in-Progress ............................................................................................................................ 95.53 90.93
(iii) Finished Products Produced ........................................................................................................ 1,108.81 976.26
(iv) Stock-in-Trade [includes in transit Rs. 60.58 crores (2015 : Rs. 37.49 crores)] ......................... 543.47 417.11
(v) Manufactured Components .......................................................................................................... 110.54 116.08
(vi) Stores and Spares .......................................................................................................................... 53.21 49.83
(vii) Tools ................................................................................................................................................ 37.80 39.30
2,687.93 2,437.57

17. Trade Receivables :

Rupees crores

2016 2015
(A) Outstanding for a period exceeding six months from the date they
are due for payment
Unsecured, considered good ..................................................................... 102.55 56.36
Doubtful....................................................................................................... 58.06 46.14
160.61 102.50
Less : Provision for doubtful trade receivables ....................................... 58.06 46.14
102.55 56.36
(B) Others – Unsecured, considered good..................................................... 2,409.50 2,501.67
2,512.05 2,558.03

18. Cash and Bank Balances :

Rupees crores

2016 2015
(A) Cash and Cash Equivalents :
Balances with Banks :
(i) On Current Accounts ........................................................................ 257.10 239.39
(ii) Fixed Deposits with original maturity less than 3 months ............ 193.64 286.12
450.74 525.51
Cheques, drafts on hand............................................................................ 391.15 390.94
Cash on hand ............................................................................................. 0.42 0.66
842.31 917.11

(B) Other Bank Balances :

Earmarked balances with banks .............................................................. 15.58 14.69
Balances with Banks :
(i) On Margin Accounts ......................................................................... 9.66 6.94
(ii) Fixed Deposits with original maturity greater than 3 months* ... 1,429.48 1,126.03
1,439.14 1,132.97
1,454.72 1,147.66
2,297.03 2,064.77

* Includes deposits of Rs. 10.00 crores (2015 : Rs. Nil crores) with maturity greater than 12 months from Balance Sheet date

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19. Short Term Loans and Advances :

Rupees crores

2016 2015
(A) Loans and Advances to Related Parties :
Unsecured, considered good .................................................................... 487.35 207.13
Doubtful....................................................................................................... 10.12 10.57

497.47 217.70
Less : Provision for doubtful loans and advances to related parties .... 10.12 10.57

487.35 207.13

(B) Other Loans and Advances :

Unsecured, considered good .................................................................... 691.90 565.97
Doubtful....................................................................................................... 30.40 29.65

722.30 595.62
Less : Provision for doubtful other loans and advances ....................... 30.40 29.65

691.90 565.97

1,179.25 773.10

(a) Loans and Advances to Related Parties includes Fixed/Call deposits with/loans to limited companies Rs. 485.04 crores
(2015 : Rs. 201.36 crores) including Rs. 480.45 crores (2015 : Rs. 196.77 crores) to subsidiary companies.

(b) Other Loans and Advances also includes balances with government authorities, advance to suppliers, other recoverable expenses, prepaid
expenses, advance to employees and deposits.

20. Other Current Assets :

Rupees crores
2016 2015
Government Grant receivable ............................................................................................................... 178.92 135.03
Interest accrued ...................................................................................................................................... 143.39 109.99
Other receivables including export benefits ....................................................................................... 265.29 290.10

587.60 535.12

Considered Good .................................................................................................................................... 581.23 529.32

Doubtful .................................................................................................................................................. 6.37 5.80

587.60 535.12
Less :
Provision for doubtful other current assets ........................................................................................ 6.37 5.80

581.23 529.32

Mahindra & Mahindra Limited 179

21. Revenue from Operations :
Rupees crores

2016 2015
Sale of Products ................................................................................................... 42,764.35 39,736.80
Sale of Services ................................................................................................... 353.97 341.91

Gross Revenue from Sale of Products and Services (Refer Note A below) .. 43,118.32 40,078.71

Other Operating Revenues :

(i) Scrap Sales ................................................................................................... 84.57 123.84
(ii) Government Grant and Incentives (including export benefits) ............ 236.97 274.48
(iii) Others........................................................................................................... 166.78 155.49

488.32 553.81

43,606.64 40,632.52
Less : Excise Duty attributable to products sold.............................................. 2,721.66 2,187.69

40,884.98 38,444.83

(A) Details of Gross Revenue from Sale of Products and Services :

Rupees crores

2016 2015
Sale of Products :
Manufactured Goods :
(i) Vehicles – Four Wheelers ..................................................................................................... 19,407.57 18,335.51
(ii) Vehicles – Three Wheelers ................................................................................................... 796.97 794.21
(iii) Tractors................................................................................................................................... 10,180.20 11,034.11
(iv) Others..................................................................................................................................... 1,572.00 1,311.42
31,956.74 31,475.25

Traded Goods :
(i) Vehicles – Four Wheelers ..................................................................................................... 7,624.12 5,549.54
(ii) Tractors and Agricultural Implements ................................................................................ 176.63 191.93
(iii) Spares* ................................................................................................................................... 2,361.09 2,153.22
(iv) Others..................................................................................................................................... 645.77 366.86
10,807.61 8,261.55

Sale of Products ............................................................................................................................. 42,764.35 39,736.80

Sale of Services :
(i) Annual Maintenance Contracts ........................................................................................... 129.22 155.96
(ii) Others..................................................................................................................................... 224.75 185.95

Sale of Services .............................................................................................................................. 353.97 341.91

Gross Revenue from Sale of Products and Services................................................................... 43,118.32 40,078.71

* Sale of goods shown consists of purchased and manufactured spares. The bifurcation of sales into purchased and manufactured spares
is not practicable.

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22. Other Income :

Rupees crores

2016 2015
(a) Interest Income :
(i) Interest – Current Investments.......................................................... 3.47 4.75
(ii) Interest – Others ................................................................................. 209.35 215.29
212.82 220.04
(b) Dividend on investments in subsidiaries .................................................. 246.04 272.73
(c) Dividend on other long term investments............................................... 170.93 139.34
(d) Dividend on current investments .............................................................. 49.26 81.82
(e) Profit on sale of current investments (Net) ............................................. 49.03 5.84
(f) Others........................................................................................................... 126.77 129.17
854.85 848.94

23. Cost of Materials Consumed :

Rupees crores
2016 2015
Opening Stock ........................................................................................................................................ 748.06 816.72
Add : Purchases [including outside processing charges Rs. 539.89 crores (2015 : Rs. 551.90 crores)] 19,363.67 20,203.82
20,111.73 21,020.54
Less : Closing Stock................................................................................................................................. 738.57 748.06
19,373.16 20,272.48

(A) Cost of Materials Consumed comprises the following :

Rupees crores
2016 2015
(i) Steel Items, paints and other materials ............................................................................. 550.40 603.27
(ii) Tyres and Tubes ..................................................................................................................... 1,239.18 1,366.06
(iii) Components other than Tyres and Tubes (including processing charges) ..................... 16,935.60 17,615.41
(iv) Material handling and transportation charges etc. incurred on the above items not
separately allocable .............................................................................................................. 647.98 687.74
19,373.16 20,272.48

(B) Value of Imported and Indigenous Raw Materials and Components Consumed* :
Rupees crores
2016 2015
(i) Imported ............................................................................................................................... 429.01 539.80
2.21% 2.66%
(ii) Indigenous ............................................................................................................................. 18,944.15 19,732.68
97.79% 97.34%
19,373.16 20,272.48
100.00% 100.00%

* Includes items used for other than production, amount not ascertained.

Mahindra & Mahindra Limited 181

24. Purchases of Stock-in-Trade :
Rupees crores

2016 2015
(i) Vehicles – Four Wheelers .............................................................................................................. 8,529.13 5,823.28
(ii) Tractors and Agricultural Implements ......................................................................................... 158.43 179.28
(iii) Spares .............................................................................................................................................. 1,124.06 994.01
(iv) Others.............................................................................................................................................. 597.64 362.80
10,409.26 7,359.37

25. Changes in Inventories of Finished Goods, Work-in-Progress, Stock-in-Trade and Manufactured Components :
Rupees crores

2016 2015
Opening Stock :
(i) Finished Products Produced....................................................................... 976.26 1,249.49
(ii) Work-in-Progress ......................................................................................... 90.93 113.42
(iii) Stock-in-Trade .............................................................................................. 417.11 410.94
(iv) Manufactured Components ....................................................................... 116.08 129.52
1,600.38 1,903.37
Less : Closing Stock :
(i) Finished Products Produced....................................................................... 1,108.81 976.26
(ii) Work-in-Progress ......................................................................................... 95.53 90.93
(iii) Stock-in-Trade .............................................................................................. 543.47 417.11
(iv) Manufactured Components ....................................................................... 110.54 116.08
1,858.35 1,600.38
(257.97) 302.99
Excise duty on changes in inventories of finished goods ............................... 42.17 20.64
(Increase)/decrease in Stock ............................................................................... (215.80) 323.63

Details of Opening and Closing Stock of Work-in-Progress :

Rupees crores

2016 2015
Opening Stock :
(i) Automotive ..................................................................................................................................... 34.77 45.44
(ii) Farm Equipment ............................................................................................................................. 56.16 67.98
90.93 113.42

Closing Stock :
(i) Automotive ..................................................................................................................................... 42.73 34.77
(ii) Farm Equipment ............................................................................................................................. 52.80 56.16
95.53 90.93

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 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
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26. Employee Benefits Expense :

Rupees crores
2016 2015
Salaries, Wages, Bonus etc. ................................................................................................................... 1,889.23 1,884.12
Contribution to Provident and other funds ........................................................................................ 172.36 213.05
Employee Stock Compensation Expense [Note 33] ............................................................................ 88.37 35.07
Welfare .................................................................................................................................................... 192.19 184.69
2,342.15 2,316.93

27. Finance Costs :

Rupees crores
2016 2015
Interest Expense .................................................................................................................................... 108.11 156.59
Discounting Charges ............................................................................................................................. 43.51 53.68
Other Borrowing Costs ......................................................................................................................... 3.67 4.03
155.29 214.30

28. Depreciation and Amortisation Expense :

Rupees crores
2016 2015
Depreciation on Tangible Assets ......................................................................................................... 911.70 817.15
Amortisation on Intangible Assets ....................................................................................................... 196.91 157.75
1,108.61 974.90

29. Other Expenses :

Rupees crores

2016 2015
Stores consumed .................................................................................................. 112.85 138.61
Tools consumed ................................................................................................... 40.20 41.18
Power and fuel ................................................................................................... 230.64 222.41
Rent including lease rentals .............................................................................. 91.67 87.84
Rates and taxes .................................................................................................. 25.87 26.51
Insurance .............................................................................................................. 34.22 32.06
Repairs and Maintenance :
Buildings ........................................................................................................... 36.18 31.34
Machinery ......................................................................................................... 212.89 180.96
Others ............................................................................................................... 109.27 93.26
358.34 305.56
Advertisement ..................................................................................................... 477.98 332.99
Service coupon..................................................................................................... 95.95 72.66
Freight outward................................................................................................... 665.15 641.15
Sales promotion expenses .................................................................................. 266.99 242.99
Dealer and other sales incentives ...................................................................... 189.56 184.19
Donations and contributions ............................................................................. 52.45 58.16
Excess of carrying cost over fair value of current investments, reversed (Net).. (2.91) (0.76)
Provision for doubtful debts/advances (Net) .................................................. 21.53 (5.79)
Miscellaneous expenses ...................................................................................... 1,824.77 1,720.22
4,485.26 4,099.98

Mahindra & Mahindra Limited 183

29. Other Expenses : (contd.)
(a) Repairs and Maintenance to machinery includes machinery spares consumed Rs. 46.72 crores (2015 : Rs. 45.71 crores) but does not include
items included under Consumption of Raw Materials and Bought-out Components and amounts charged to salaries and wages (amounts
not ascertained).
Value of Imported and Indigenous Spare Parts consumed is as follows :
Rupees crores
2016 2015
(i) Imported ................................................................................................................................ 3.15 2.66
6.74% 5.82%
(ii) Indigenous ............................................................................................................................. 43.57 43.05
93.26% 94.18%
46.72 45.71
100.00% 100.00%

(b) Donation and contributions include contributions to :

Rupees crores
2016 2015
(a) Indian National Congress — 5.00
(b) Bhartiya Janata Party — 5.00
(c) Shiv Sena — 1.00
(d) Nationalist Congress Party — 1.00
(e) Maharashtra Navnirman Sena — 0.50
— 12.50

(c) Miscellaneous Expenses include :

Amounts paid/payable to Auditors (Net of service tax where applicable) :
Rupees crores
Statutory Auditors Cost Auditors
(i) Audit Fees .............................................................................................................................. 2.91 0.09
2.61 —
(ii) Taxation Matters ................................................................................................................... 0.50 —
0.71 —
(iii) Other Services ....................................................................................................................... 1.33 —
1.18 0.01
(iv) Reimbursement of expenses................................................................................................ 0.02 *
0.01 *
4.76 0.09
4.51 0.01

The above includes amounts paid/payable for professional services rendered by firm in which some of the partners of the statutory
auditors’ firm are partners Rs. 0.51 crores (2015: Rs. 0.32 crores)
Current year figures are in bold
* denotes amounts less than Rs. 50,000.
(d) Other expenses includes expenditure incurred on Corporate Social Responsibilty (CSR) under section 135 of the Companies Act, 2013
Rs. 85.90 crores (2015 Rs. 83.24 crores).
30. Interest capitalised during the year on qualifying assets Rs. 35.25 crores (2015 : Rs. 26.12 crores).

31. Employee Benefits :

General description of defined benefit plans :
Gratuity
The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the
Payment of Gratuity Act or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous
service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the
gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life
Insurance Corporation of India through its Gratuity Trust Fund.

184 Annual Report 2015-16

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Post retirement medical

The Company provides post retirement medical cover to select grade of employees to cover the retiring employee and their spouse upto a specified
age through mediclaim policy on which the premiums are paid by the Company. The eligibility of the employee for the benefit as well as the
amount of medical cover purchased is determined by the grade of the employee at the time of retirement.
Post retirement housing allowance
The Company operates a post retirement benefit scheme for a certain grade of employees in which a monthly allowance determined on the basis
of the last drawn basic salary at the time of retirement, is paid to the retiring employee in lieu of housing.
Defined benefit plans – as per actuarial valuation on 31st March, 2016
Rupees crores
Funded Plan Unfunded Plans
Gratuity Post retirement Post retirement
medical housing allowance
2016 2015 2016 2015 2016 2015
I. Expense recognised in the Statement of Profit and Loss for the year
ended 31st March
1. Current service cost ............................................................................. 44.08 36.58 1.04 0.88 2.64 2.04
2. Interest cost ......................................................................................... 50.61 49.46 1.69 1.50 3.54 3.05
3. Expected return on plan assets ......................................................... (28.13) (25.86) — — — —
4. Actuarial (Gain)/Loss ........................................................................... (13.81) 37.44 2.19 2.65 (0.87) 5.79
5. Total expense included in Employee Benefits Expense .................. 52.75 97.62 4.92 5.03 5.31 10.88
6. Actual return on plan assets .............................................................. 37.03 34.91 — — — —
II. Net Asset/(Liability) recognised in the Balance Sheet as at 31st March
1. Present value of defined benefit obligation as at 31st March ....... 671.01 641.47 24.67 20.36 45.44 42.00
2. Fair value of plan assets as at 31st March ......................................... 473.01 413.02 — — — —
3. Surplus/(Deficit) ................................................................................... (198.00) (228.45) (24.67) (20.36) (45.44) (42.00)
4. Current portion of the above ............................................................ (54.66) (52.96) (0.72) (0.56) (1.88) (1.01)
5. Non current portion of the above .................................................... (143.34) (175.49) (23.95) (19.80) (43.56) (40.99)
III. Change in the obligation during the year ended 31st March
1. Present value of defined benefit obligation at the beginning of
the year ................................................................................................ 641.47 554.19 20.36 15.90 42.00 32.13
2. Current service cost ............................................................................. 44.08 36.58 1.04 0.88 2.64 2.04
3. Interest cost ......................................................................................... 50.61 49.46 1.69 1.50 3.54 3.05
4. Actuarial (Gain)/Loss ........................................................................... (4.91) 46.49 2.19 2.65 (0.87) 5.79
5. Benefit payments ................................................................................ (60.24) (45.25) (0.61) (0.57) (1.87) (1.01)
6. Present value of defined benefit obligation at the end of the year 671.01 641.47 24.67 20.36 45.44 42.00
IV. Change in fair value of assets during the year ended 31st March
1. Fair value of plan assets at the beginning of the year ................... 413.02 374.00 — — — —
2. Expected return on plan assets ......................................................... 28.13 25.86 — — — —
3. Actuarial Gain/(Loss) ........................................................................... 8.90 9.05 — — — —
4. Contributions by employer (including benefit payments
recoverable) ......................................................................................... 83.20 49.36 0.61 0.57 1.87 1.01
5. Benefit payments ................................................................................ (60.24) (45.25) (0.61) (0.57) (1.87) (1.01)
6. Fair value of plan assets at the end of the year .............................. 473.01 413.02 — — — —
7. Actual return on plan assets .............................................................. 37.03 34.91 — — — —
V. Expected Employer's Contribution next year 30.00 30.00 0.71 0.57 1.87 1.01
VI. The Major categories of plan assets as percentage of total plan
Insurer managed funds*............................................................................. 100.00% 100.00% — — — —
VII. Actuarial assumptions
1. Discount rate........................................................................................ 7.85% 8.00% 7.85% 8.00% 7.85% 8.00%
2. Expected rate of return on plan assets ............................................ 7.50% 7.50% — — — —
3. Attrition rate........................................................................................ 7.00% 7.00% 7.00% 7.00% — —
4. Medical premium inflation ................................................................. — — 7.00% 7.00% — —

* In the absence of detailed information regarding plan assets which is funded with Insurance Companies, the composition of each major category
of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.

Mahindra & Mahindra Limited 185

 Rupees crores

VIII. Effect of one percentage point change in the assumed medical One percentage point increase One percentage point decrease
inflation rate in medical inflation rate in medical inflation rate

2016 2015 2016 2015

1. Effect on the aggregate service and interest cost of post

employment medical benefits .......................................................... 0.58 0.47 (0.49) (0.39)

2. Effect on the accumulated post employment medical benefits

obligation ............................................................................................ 3.50 2.93 (3.01) (2.45)

IX. Experience Adjustments Period Ended

2016 2015 2014 2013 2012

Gratuity

1. Defined Benefit Obligation ............................................................... 671.01 641.47 554.19 479.14 430.04

2. Fair value of plan assets .................................................................... 473.01 413.02 374.00 352.82 326.66

3. Surplus/(Deficit) .................................................................................. (198.00) (228.45) (180.19) (126.32) (103.38)

4. Experience adjustment on plan liabilities [(Gain)/Loss] ................. (11.88) (7.22) 74.57 6.82 19.64

5. Experience adjustment on plan assets [Gain/(Loss)] ...................... 8.90 9.05 6.66 6.82 8.85

Post retirement medical

1. Defined Benefit Obligation ............................................................... 24.67 20.36 15.90 15.28 13.59

2. Plan assets ........................................................................................... — — — — —

3. Surplus/(Deficit) .................................................................................. (24.67) (20.36) (15.90) (15.28) (13.59)

4. Experience adjustment on plan liabilities [(Gain)/Loss] ................. 1.71 0.13 1.35 (0.60) (0.16)

Post retirement housing allowance

1. Defined Benefit Obligation ............................................................... 45.44 42.00 32.13 31.46 24.95

2. Plan assets ........................................................................................... — — — — —

3. Surplus/(Deficit) .................................................................................. (45.44) (42.00) (32.13) (31.46) (24.95)

4. Experience adjustment on plan liabilities [(Gain)/Loss] ................. (1.55) 1.56 0.75 2.55 6.28

The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the fund during the
estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant
factors, such as supply and demand in the employment market.

The Company’s contribution to Provident Fund and Superannuation Fund aggregating Rs. 119.23 crores (2015 : Rs. 115.12 crores) has been
recognised in the Statement of Profit and Loss under the head Employee Benefits Expense.

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32. Provision :
(a) Provision for warranty relates to warranty provision made in respect of sale of certain products, the estimated cost of which is accrued
at the time of sale. The products are generally covered under a free warranty period ranging from 6 months to 5 years.

(b) The movement in provision for warranty is as follows :

Rupees crores
2016 2015
Balance as at 1 April...................................................................................................................
st
370.18 338.54
Add : Provision made during the year ....................................................................................... 295.67 295.64
Less : Utilisation during the year ................................................................................................ 248.45 264.00
Balance as at 31 March ..............................................................................................................
st
417.40 370.18
Out of the above,
Classified as Non Current ............................................................................................................ 216.76 176.84
Classified as Current ..................................................................................................................... 200.64 193.34
417.40 370.18

33. The Company has allotted 55,24,219 Ordinary (Equity) Shares of Rs. 10 each, 10,00,000 Ordinary (Equity) Shares of Rs. 10 each, 1,73,53,034
Ordinary (Equity) Shares of Rs. 5 each, 19,11,628 Ordinary (Equity) Shares of Rs. 5 each and 52,00,000 Ordinary (Equity) Shares of Rs. 5 each
in the years ended 31st March, 2002, 31st March, 2010, 31st March, 2011, 31st March, 2014 and 31st March, 2015 respectively to the Mahindra
& Mahindra Employees’ Stock Option Trust set up by the Company. The trust holds these shares for the benefit of the employees and issues
them to the eligible employees as per the recommendation of the Compensation Committee.
Options granted under Mahindra & Mahindra Limited Employees Stock Option Scheme - 2000 ("2000 Scheme") vest in 4 equal installments
on the expiry of 12 Months, 24 Months, 36 Months and 48 Months from the date of grant. The options may be exercised on any day over
a period of five years from the date of vesting. Number of vested options exercisable is subject to a minimum of 50 or number of options
vested whichever is lower.
Options granted under Mahindra & Mahindra Limited Employees Stock Option Scheme - 2010 ("2010 Scheme") vest in
i) 5 equal instalments on the expiry of 12 Months, 24 Months, 36 Months, 48 Months and 60 Months from the date of grant or
ii) 4 instalments bifurcated as 20% on the expiry of 18 months, 20% on the expiry of 30 months, 30% on the expiry of 42 months and 30%
on the expiry of 54 months.
The options may be exercised on any day over a period of 5 years from the date of vesting. Number of vested options exercisable is subject
to a minimum of 50 or number of options vested whichever is lower.
The compensation costs of stock options granted to employees are accounted by the Company using the intrinsic value method.
Summary of stock options
No. of stock Weighted average
options exercise price (Rs.)
Options outstanding on 1st April, 2015 ............................................................................................ 34,19,272 150.84
Options granted during the year (including 27,61,957 options with 4 years vesting grants) ... 29,20,567 5.00
Options forfeited/lapsed during the year (including 39,591 options forfeited from 4 years
vesting grants) .................................................................................................................................... 1,80,930 167.82
Options exercised during the year ................................................................................................... 12,41,529 143.45
Options outstanding on 31 March, 2016 (including 2,722,366 options outstanding from
st

4 years vesting grants) ....................................................................................................................... 49,17,380 65.46

Options vested but not exercised on 31st March, 2016 .................................................................. 15,04,649 200.41

Average share price on the date of exercise of the options are as under
Weighted average
Date of exercise share price (Rs.)
21st April, 2015 - 23rd March, 2016 .................................................................................................... 1,241.24

Mahindra & Mahindra Limited 187

 Information in respect of options outstanding as at 31st March, 2016
Range of exercise price Number of options Weighted average
remaining life
Rs. 5.00 ................................................................................................................................................ 39,68,252 7.04 Years
Rs. 250.00 ............................................................................................................................................ 4,78,506 1.37 Years
Rs. 381.00 ............................................................................................................................................ 3,18,746 0.33 Years
Rs. 362.00 ............................................................................................................................................ 1,31,876 2.59 Years
Rs. 662.00 ............................................................................................................................................ 20,000 3.98 Years
The fair values of options granted during the year are as follows:
Grant dated 25th August, 2015 (4 years vesting) : Rs. 1173.49 per share
Grant dated 5th November, 2015 (5 years vesting) : Rs. 1186.77 per share
Grant dated 5th November, 2015 (4 years vesting) : Rs. 1184.56 per share

The fair value has been calculated using the Black Scholes Options Pricing Model and the significant assumptions made in this regard are as
follows
Grant dated
25th August 2015 5th Nov 2015 5th Nov 2015
(4 years vesting) (4 years vesting) (5 years vesting)
Risk free interest rate .................................................................................. 7.88% 7.64% 7.63%
Expected life ................................................................................................. 5.71 years 5.70 years 5.50 years
Expected volatility ........................................................................................ 31.53% 30.92% 31.05%
Expected dividend yield .............................................................................. 0.97% 0.96% 0.96%
Exercise Price (Rs.) ........................................................................................ 5.00 5.00 5.00
Stock Price (Rs.) ............................................................................................ 1,243.25 1,254.30 1,254.30

In respect of Options granted under the Employee Stock Option Plan, in accordance with guidelines issued by SEBI, the accounting value of
the options is accounted as deferred employee compensation, which is amortised on a straight line basis over the period between the date
of grant of options and eligible dates for conversion into equity shares. Consequently, salaries, wages, bonus etc. includes Rs. 88.37 crores
(2015 : Rs. 35.07 crores) being the amortisation of deferred employee compensation, after adjusting for reversals on account of options
lapsed. The amount excludes Rs. 5.26 crores (2015 : Rs. 2.68 crores) charged to its subsidiaries for options issued to their employees.

Had the Company adopted fair value method in respect of options granted on or after 1st April, 2005, the employee compensation cost would
have been lower by Rs. 5.01 crores, Profit after tax higher by Rs. 5.01 crores and the basic and diluted earnings per share would have been
higher by Rs. 0.08 and Rs. 0.08 respectively.

34. Contingent Liability & Commitments :

(A) Contingent Liability :
(a) Guarantees given by the Company :
Rupees crores
Amount of guarantees Outstanding amounts against
guarantees
2016 2015 2016 2015
For other companies ............................................................... 1,455.26 1,344.48 1,389.01 1,281.98

(b) Claims against the Company not acknowledged as debts comprise of :

(i) Excise Duty, Sales Tax and Service Tax claims disputed by the Company relating to issues of applicability and classification
aggregating Rs. 2,846.51 crores before tax (2015 : Rs. 2,003.26 crores before tax).
(ii) Other matters (excluding claims where amounts are not ascertainable) : Rs. 27.65 crores before tax (2015 : Rs. 28.53 crores
before tax).

188 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

(c) Taxation matters :

(i) Demands against the Company not acknowledged as debts and not provided for, relating to issues of deductibility and
taxability in respect of which the Company is in appeal and exclusive of the effect of similar matters in respect of assessments
remaining to be completed :
– Income-tax : Rs. 564.56 crores (2015 : Rs. 526.49 crores).
(ii) Items in respect of which the Company has succeeded in appeal, but the Income-tax Department is pursuing/likely to pursue
in appeal/reference and exclusive of the effect of similar matters in respect of assessments remaining to be completed :
– Income-tax matters : Rs. 112.30 crores (2015 : Rs. 153.65 crores).
– Surtax matters : Rs. 0.13 crores (2015 : Rs. 0.13 crores).
(d) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) by its order dated 7th December, 2009 has rejected the Company’s
appeal against the order dated 30 th March, 2005 passed by the Commissioner of Central Excise (Adjudication), Navi Mumbai
confirming the demand made on the Company for payment of differential excise duty (including penalty) of Rs. 304.10 crores in
connection with the classification of Company’s Commander range of vehicles, during the years 1991 to 1996. Whilst the Company
had classified the Commander range of vehicles as 10-seater attracting a lower rate of excise duty, the Commissioner of Central
Excise (Adjudication), Navi Mumbai, has held that these vehicles could not be classified as 10-seater as they did not fulfil the
requirement of 10-seater vehicles, as provided under the Motor Vehicles Act, 1988 (MVA) read with Maharashtra Motor Vehicles
Rules, 1989 (MMVR) and as such attracted a higher rate of excise duty. The Company has challenged the CESTAT order in the
Supreme Court.
In earlier collateral proceedings on this issue, the CESTAT had, by an order dated 19 th July, 2005 settled the controversy in the
Company’s favour. The CESTAT had accepted the Company’s submission that MVA and MMVR could not be referred to for
determining the classification for the purpose of levy of excise duty and rejected the Department’s appeal against the order of
the Collector, Central Excise classifying the Commander range of vehicles as 10-seater. The Department had challenged the CESTAT
order in the Supreme Court.
Without prejudice to the grounds raised in this appeal, the Company has paid an amount of Rs. 40.00 crores in January, 2010. The
Supreme Court has admitted the Company’s appeal and has stayed the recovery of the balance amount till further orders.
Both these orders of the Tribunals were heard and disposed off by the Honourable Supreme Court, in August 2014. Since
contrary views were expressed by the Tribunals in two parallel proceedings, the Honourable Supreme Court directed
that a larger bench of the Tribunal be constituted to hear the appeals without expressing any opinion on the issues.
The Larger Bench of the CESTAT heard the matter in February, 2015 and by an order dated 27 February, 2015,
remanded the matter to the Commissioner of Central Excise for consideration of the case afresh keeping all issues open.
The company strongly believes, based on legal advice it has received, that it has a good case on merits so as to ultimately succeed
in the matter.
In another case relating to Armada range of vehicles manufactured during the years 1992 to 1996, by the Company at its Nashik
facility, the Commissioner of Central Excise, Nashik passed an order dated 20 th March, 2006 confirming a demand of Rs. 24.75 crores,
on the same grounds as adopted for Commander range of vehicles. The CESTAT has given an unconditional stay against this order.
The final hearing in this matter has been adjourned till the disposal of the appeal by the Supreme Court in the matter relating to
Commander range of vehicles.
As such, the Company does not expect any liability on this account. However, in view of the CESTAT orders and subsequent
proceedings, pending their final outcome, the Company has reflected the above amount aggregating Rs. 328.85 crores
(2015 : Rs. 328.85 crores) and the interest of Rs. 377.64 crores (2015 : Rs. 341.44 crores) accrued on the same upto 31st March, 2016,
under Note (b)(i) above.
(e) In respect of (b) & (c) above, it is not practicable for the Company to estimate the closure of these issues and the consequential
timings of cash flows, if any.

(B) Commitments :
(a) Uncalled liability on equity shares partly paid Rs. Nil crores (2015 : Rs. 10.50 crores).

(b) The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2016 is
Rs. 924.74 crores (2015 : Rs. 745.08 crores) and other commitment as at 31st March 2016 is Rs. 8.50 crores (2015: Rs. Nil crores)

35. Research and Development expenditure :

(a) In recognised Research and Development units :
(i) Debited to the Statement of Profit and Loss, including certain expenditure based on allocations made by the Company, aggregate
Rs. 730.93 crores (2015 : Rs. 702.76 crores) [excluding depreciation and amortisation of Rs. 287.02 crores (2015 : Rs. 206.98 crores)].
(ii) Development expenditure incurred during the year Rs. 905.41 crores (2015 : Rs. 634.25 crores).
(iii) Capitalisation of assets Rs. 104.65 crores (2015 : Rs. 162.29 crores).

Mahindra & Mahindra Limited 189

 (b) In other units :
(i) Debited to the Statement of Profit and Loss, including certain expenditure based on allocations made by the Company, aggregate
Rs. 68.27 crores (2015 : Rs. 45.28 crores) [excluding depreciation and amortisation of Rs. 9.78 crores (2015 : Rs. 39.77 crores)].
(ii) Development expenditure incurred during the year Rs. 106.22 crores (2015 : Rs. 41.64 crores).
(iii) Capitalisation of assets Rs. 22.38 crores (2015 : Rs. 0.91 crores).

36. The net difference in foreign exchange loss debited to the Statement of Profit and Loss is a loss of Rs. 109.01 crores (2015 : Rs. 45.99 crores).
37. The Board of Directors of the Company during the year ended 31st March, 2014, approved entering into a transaction in the Auto Components
business with CIE Automotive S.A., Spain (CIE). The transaction was to be completed in parts with the first part being completed in the
financial year ended 31st March, 2014. During the year ended 31st March, 2015, the second (and final) part of the transaction involving
the merger through a scheme of arrangement of Mahindra Ugine Steel Company Limited (MUSCO), Mahindra Gears International Limited
(MGIL), Mahindra Investments (India) Private Limited (MIIPL), Mahindra Hinoday Industries Limited, Mahindra Composites Limited and a
CIE subsidiary with Mahindra CIE Automotive Limited (MCIE) was approved by the High Court of Bombay and became operative from the
appointed date of 1st October, 2013 and came into effect (effective date) from 10 th December, 2014. In terms of the scheme the company has
received shares in MCIE which has been accounted for in accordance with AS 13 – Accounting for Investments. Having regard to the substance
of the transaction, the excess of the fair value of MCIE Shares received and carrying cost of investment in MUSCO, MIIPL and MGIL of
Rs. 267.47 crores, has been credited to the Investment Fluctuation Reserve to offset the losses recognised in the year ended 31st March, 2015.
38. During the year ended 31st March, 2015, the Scheme of Arrangement (Scheme) between the Company's subsidiary Mahindra
Engineering Services Limited (MESL) with Tech Mahindra Limited (TML), an associate of the Company, was approved by the High
Court of Bombay. The scheme was operative from the appointed date of 1st April, 2013 and had come into effect (effective date) from
8th December, 2014. Consequently, during the year ended 31st March, 2015, MESL along with its subsidiaries Mahindra Engineering
Services (Europe) Limited, Mahindra Engineering GmbH, Mahindra Technologies Services Inc. ceased to be subsidiaries of the Company.
In accordance with AS 13 - Accounting for Investments, Rs. 299.34 crores, being the excess of fair value of TML shares received in terms of
the scheme over the carrying cost of investments in MESL had been recorded as an exceptional item during the year ended 31st March, 2015.

39. Provision for diminution in the value of long term investments for the year comprises:
Rupees crores
2016 2015
Provision for diminution in value of certain long term investments ...................................................... 126.07 333.62
Less :
Transfer from Investment Fluctuation Reserve pursuant to the Schemes of Arrangement/
Amalgamation approved by the Honourable High Courts ...................................................................... 126.07 333.62
— —
In addition also refer note 40 below.

40. Exceptional items of Rs. 68.74 crores (2015 : Rs. 335.72 crores) comprise of :
(a) profit on sale of certain long term investments Rs. 68.74 crores (2015 : Rs. 36.38 crores). This includes Rs. 62.75 crores (net of
Rs. 61.48 crores credited to Investment Fluctuation Reserve) on transfer of the Company’s entire investments in certain subsidiaries
and associate engaged in domestic automotive manufacturing and support business at fair values to Mahindra Vehicle Manufacturers
Limited, a wholly owned subsidiary.
(b) due to scheme of arrangement as referred to in Note 38 Rs. Nil crores (2015 : Rs. 299.34 crores)

41. Earnings per Share :

2016 2015
Profit for the year (Rupees crores) .............................................................................................................. 3,167.48 3,321.11
Profit for the year for diluted earnings per share (Rupees crores) ......................................................... 3,167.48 3,321.11
Weighted average number of Ordinary (Equity) Shares used in computing basic earnings
per share ........................................................................................................................................................ 59,19,19,448 59,06,11,467
Effect of potential Ordinary (Equity) Shares on conversion of bonds and employee stock options .. 2,91,78,280 2,83,05,150
Weighted average number of Ordinary (Equity) Shares used in computing diluted earnings
per share ........................................................................................................................................................ 62,10,97,728 61,89,16,617
Basic Earnings per share (Rs.) (Face value of Rs. 5 per share) ................................................................. 53.51 56.23
Diluted Earnings per share (Rs.) .................................................................................................................. 51.00 53.66

190 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

42. Related Party Disclosures :

(a) Related parties where control exists :
(i) Subsidiaries :

Sl. No. Name of the Company Sl. No. Name of the Company
1 Mahindra Engineering and Chemical Products Limited 52 Retail Initiative Holdings Limited
2 Mahindra Steel Service Centre Limited 53 Mahindra Retail Private Limited
3 Mahindra First Choice Wheels Limited 54 Mahindra Aerospace Australia Pty. Limited
4 Mahindra USA Inc. 55 Aerostaff Australia Pty. Limited
5 Mahindra Gujarat Tractor Limited 56 Bristlecone Consulting Limited
6 Mahindra and Mahindra South Africa (Proprietary) Limited 57 Anthurium Developers Limited
7 Mahindra Overseas Investment Company (Mauritius) Limited 58 Gippsaero Pty. Limited
8 Mahindra Europe S.r.l. 59 GA8 Airvan Pty. Limited
9 Mahindra-BT Investment Company (Mauritius) Limited 60 GA200 Pty. Limited
10 Mahindra Intertrade Limited 61 Airvan Flight Services Pty. Limited
11 Mahindra MiddleEast Electrical Steel Service Centre (FZC) 62 Gipp Aero Investments Pty. Limited
12 Mahindra Consulting Engineers Limited 63 Nomad TC Pty. Limited
13 Mahindra Holidays & Resorts India Limited 64 Mahindra Emirates Vehicle Armouring FZ-LLC
14 Mahindra Hotels and Residences India Limited 65 Mahindra Integrated Business Solutions Private Limited
15 Mahindra Holdings Limited 66 Mahindra Aerostructures Private Limited
16 NBS International Limited 67 Ssangyong Motor Company
17 Mahindra & Mahindra Financial Services Limited 68 Ssangyong European Parts Center B.V.
18 Mahindra Insurance Brokers Limited 69 Ssangyong Motor (Shanghai) Company Limited
19 Mahindra Rural Housing Finance Limited 70 Bristlecone International AG
20 Bristlecone Limited 71 EPC Industrie Limited
21 Bristlecone Inc. 72 Mahindra Telecommunications Investment Private Limited
22 Bristlecone UK Limited 73 Mahindra Sanyo Special Steel Private Limited
23 Bristlecone India Limited 74 Mahindra Racing S.p.A (Formerly known as Mahindra
24 Bristlecone (Singapore) Pte. Limited Racing S.r.l.)
25 Bristlecone GmbH 75 Mahindra Defence Naval Systems Private Limited
26 Bristlecone (Malaysia) Sdn.Bhd. 76 Mahindra Defence Systems Limited
27 Mahindra Automobile Distributor Private Limited 77 Gables Promoters Private Limited
28 Mahindra Trucks and Buses Limited 78 2 x 2 Logistics Private Limited
29 Mahindra Lifespace Developers Limited 79 Mahindra Tractor Assembly Inc.
30 Mahindra Infrastructure Developers Limited 80 MH Boutique Hospitality Limited
31 Mahindra World City (Jaipur) Limited 81 Infinity Hospitality Group Company Limited
32 Mahindra Integrated Township Limited 82 Mahindra Telephonics Integrated Systems Limited
33 Mahindra Residential Developers Limited 83 Mahindra Asset Management Company Private Limited
34 Mahindra World City Developers Limited 84 Mahindra Trustee Company Private Limited
35 Mahindra World City (Maharashtra) Limited 85 Cleansolar Renewable Energy Private Limited
36 Knowledge Township Limited 86 Brightsolar Renewable Energy Private Limited
37 Mahindra Vehicle Manufacturers Limited 87 Mahindra Auto Steel Private Limited
38 Mahindra Logistics Limited 88 Mahindra ‘Electoral Trust’ Company
39 Mahindra Aerospace Private Limited 89 Peugeot Motocycles S.A.S.
40 Heritage Bird (M) Sdn.Bhd. 90 Peugeot Motocycles Italia S.p.A
41 Mahindra First Choice Services Limited 91 Peugeot Motocycles Deutcshland GmbH
42 Mahindra Graphic Research Design S.r.l. 92 Divine Solren Private Limited (w.e.f. 8th May, 2015)
43 Mahindra Bebanco Developers Limited 93 Neo Solren Private limited (w.e.f. 1st July, 2015)
44 Industrial Township (Maharashtra) Limited 94 Mahindra Water Utilities Limited (w.e.f. 27th July, 2015)
45 Mahindra Two Wheelers Limited 95 Are Semesterby A (w.e.f. 2nd September, 2015)
46 Mahindra Automotive Australia Pty. Limited 96 Holiday Club Resorts Oy (w.e.f. 2nd September, 2015)
47 Mahindra Internet Commerce Private Limited 97 HCR Management Oy (w.e.f. 2nd September, 2015)
48 Defence Land Systems India Limited 98 Holiday Club Sweden Ab Åre (w.e.f. 2nd September, 2015)
49 Mahindra Yueda (Yancheng) Tractor Company Limited 99 Ownership Services Ab (w.e.f. 2nd September, 2015)
50 Mahindra Electrical Steel Private Limited 100 Holiday Club Canarias Investments S.L.
51 Raigad Industrial & Business Park Limited (w.e.f. 2nd September, 2015)

Mahindra & Mahindra Limited 191

42. Related Party Disclosures : (contd.)
Sl. No. Name of the Company Sl. No. Name of the Company
101 Holiday Club Canarias Sales & Marketing S.L. 140 Himos Hillside Golf Oy (ceased w.e.f. 1st October, 2015)
(w.e.f. 2nd September, 2015) 141 Kiinteistö Oy Pisterinniementie 2 (ceased w.e.f. 1st October, 2015)
102 Holiday Club Canarias Resort Management S.L. 142 Holiday Club Katinkullan Villas Oy (ceased w.e.f. 1st October,
(w.e.f. 2nd September, 2015) 2015)
103 Suomen Vapaa-aikakiinteistöt Oy LKV 143 Kiinteistö Oy Katinpalsta (ceased w.e.f. 1st October, 2015)
(w.e.f. 2nd September, 2015) 144 Kiinteistö Oy Rauhan Ranta 6 (ceased w.e.f. 1st October, 2015)
104 Kiinteistö Oy Himos Gardens (w.e.f. 2nd September, 2015) 145 Kiinteistö Oy Rauhan Parkki (ceased w.e.f. 1st October, 2015)
105 Kiinteistö Oy Himoksen Tähti 2 (w.e.f. 2nd September, 2015) 146 Saimaan Palvelukiinteistöt Oy (ceased w.e.f. 1st October, 2015)
106 Sallan Tunturipalvelut Oy (w.e.f. 2nd September, 2015 & 147 Kiinteistö Oy Paviljongin Pysäköinti (ceased w.e.f. 1st October,
ceased w.e.f. 31st March, 2016) 2015)
107 Kiinteistö Oy Tunturinrivi (w.e.f. 2nd September, 2015) 148 Oü Holiday Club Tallinn (ceased w.e.f. 1st September, 2015)
108 Kiinteistö Oy Vanha Ykköstii (w.e.f. 2nd September, 2015) 149 Kiinteistö Oy Hakan Perusyhtiö 79 (ceased w.e.f. 1st October,
109 Kiinteistö Oy Katinkullan Villas Parkki (w.e.f. 2nd September, 2015)
2015 & ceased w.e.f. 31st March, 2016) 150 Swaraj Automotives Limited (ceased w.e.f. 1st February, 2016)
110 Kiinteistö Oy Katinnurkka (w.e.f. 2nd September, 2015) 151 Divine Heritage Hotels Private Limited
111 Kiinteistö Oy Tenetinlahti (w.e.f. 2nd September, 2015) (ceased w.e.f. 31st March, 2016)
112 Kiinteistö Oy Mällösniemi (w.e.f. 2nd September, 2015) 152 Competent Hotels Private Limited (ceased w.e.f. 31st March, 2016)
113 Holiday Club Golf Saimaa Oy (w.e.f. 2nd September, 2015 & 153 Holiday on Hills Resorts Private Limited
ceased w.e.f. 31st March, 2016) (ceased w.e.f. 31st March, 2016)
114 Kiinteistö Oy Rauhan Ranta 1 (w.e.f. 2nd September, 2015) 154 Kiinteistö Oy Jalomella (ceased w.e.f. 31st March, 2016)
115 Kiinteistö Oy Rauhan Ranta 2 (w.e.f. 2nd September, 2015) 155 Kiinteistö Oy Outapalas (ceased w.e.f. 31st March, 2016)
156 Kiinteistö Oy Ulkuvuoma (ceased w.e.f. 31st March, 2016)
116 Kiinteistö Oy Tiurunniemi (w.e.f. 2nd September, 2015)
157 Mahindra Agri Solutions Limited (Formerly known as
117 Kiinteistö Oy Rauhan Liikekiinteistöt 1
Mahindra Shubhlabh Services Limited)
(w.e.f. 2nd September, 2015)
158 Mahindra Heavy Engines Limited (Formerly known as
118 Saimaa Action Park Oy (w.e.f. 2nd September, 2015 & ceased
Mahindra Heavy Engines Private Limited)
w.e.f. 31st March, 2016)
159 Auto Digitech Private Limited (Formerly known as Mahindra
119 Supermarket Capri Oy (w.e.f. 2nd September, 2015)
Punjab Tractors Private Limited)
120 Kiinteistö Oy Kylpyläntorni 1 (w.e.f. 2nd September, 2015)
160 Mahindra Namaste Private Limited
121 Kiinteistö Oy Spa Lofts 2 (w.e.f. 2nd September, 2015)
161 Mahindra Reva Electric Vehicles Limited (Formerly known as
122 Kiinteistö Oy Spa Lofts 3 (w.e.f. 2nd September, 2015) Mahindra Reva Electric Vehicles Private Limited)
123 Kiinteistö Oy Kulennoinen (w.e.f. 2nd September, 2015 & 162 Mahindra Susten Private Limited (formerly known as
ceased w.e.f. 31st March, 2016) Mahindra EPC Services Private Limited)
124 Kiinteistö Oy Kuusamon Pulkkajärvi 1 (w.e.f. 2nd September, 2015) 163 Industrial Cluster Private Limited
125 Kongressi- ja Kylpylähotelli Caribia Oy (w.e.f. 2nd September, 164 Mahindra HZPC Private Limited
2015 & ceased w.e.f. 31st March, 2016) 165 Mahindra eMarket Limited (formerly known as Mriyalguda
126 Caribia Service Oy (w.e.f. 2nd September, 2015) Farm Solution Limited)
127 Marvel Solren Private Limited (w.e.f. 10 th October, 2015) 166 Holiday Club Sport and Spa AB (w.e.f. 1st December, 2015)
128 Astra Solren Private Limited (w.e.f. 14th October, 2015) 167 Mahindra Renewables Private Limited (formerly known as
129 Orizonte Business Solutions Limited (Formerly known as Mega Mahindra Offgrid Services Private Limited)
One Stop Farm Services Limited) (w.e.f. 25th November, 2015) 168 Mahindra North American Technical Center, Inc.
130 Airvan10 Pty. Ltd. (w.e.f. 10 th December, 2015) 169 Mahindra Racing UK Limited
131 SY Auto Capital Co., LTD (w.e.f. 28th October, 2015) 170 Mahindra UNIVEG Private Limited
132 Mahindra International UK Ltd. (w.e.f. 13th October, 2015) 171 MHR Holdings (Mauritius) Limited
133 MachinePulse Tech Private Limited (w.e.f. 5th January, 2016) 172 Convington S.a.r.l.
134 Saimaa Gardens Arena Oy (w.e.f. 19 th January, 2016) 173 Lords Freight (India) Private Limited
135 Gateway Housing Company Limited (w.e.f. 10 th March, 2016) 174 Mahindra Two Wheelers Europe Holdings S.a.r.l.
136 Kiinteistö Oy Lappeenrannan Saimaan Kreivi (w.e.f. 175 Mahindra Industrial Park Chennai Limited
2nd September, 2015 & ceased w.e.f. 15th September, 2015) 176 Are Semesterby B (w.e.f. 2nd September, 2015)
137 Holiday Club Rus LLC (w.e.f. 2nd September, 2015) 177 Are Semesterby C (w.e.f. 2nd September, 2015)
138 Mahindra Business & Consulting Services Private Limited 178 Are Semesterby D (w.e.f. 2nd September, 2015)
(ceased w.e.f. 18th April, 2015) 179 Are Villas 1 Ab (w.e.f. 2nd September, 2015)
139 Saariselkä Resort Oy (ceased w.e.f. 1st October, 2015) 180 Are Villas 2 Ab (w.e.f. 2nd September, 2015)

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Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
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42. Related Party Disclosures : (contd.)

(b) Other parties with whom transactions have taken place during the year.
(i) Associates :
Sl. No. Name of the Company Sl. No. Name of the Company
1. Mahindra Construction Company Limited 5. Tech Mahindra Limited
2. Swaraj Engines Limited 6. Mahindra CIE Automotive Limited
3. Mahindra & Mahindra Contech Limited 7. PSL Media & Communications Limited
4. Kota Farm Services Limited

(ii) Associate of a Subsidiary :

Sl. No. Name of the Company

1. Mahindra Tsubaki Conveyor Systems Private Limited

(iii) Joint Venture :

Sl. No. Name of the Company

1. Mahindra Sona Limited

2. Mitsubishi Mahindra Agricultural Machinery Co., Limited (w.e.f. 1st October, 2015)

(iv) Joint Venture of a Subsidiary :

Sl. No. Name of the Company

1. Mahindra Inframan Water Utilities Private Limited

2. Mahindra Solar One Private Limited

3. Mahindra Homes Private Limited

(v) Key Management Personnel (KMP) :

Chairman and Managing Director.............................................. Mr. Anand G. Mahindra

Executive Director and Group President

(Auto & Farm Sector) ................................................................... Dr. Pawan Goenka

(vi) Enterprise over which KMP is able to exercise significant influence :

Sl. No. Name of the Company

1. Prudential Management & Services Private Limited

(vii) Welfare Funds :

Sl. No. Name of the Fund

1. M&M Employees' Welfare Fund No. 1 (formerly known as M&M Employees' Welfare Fund)

2. M&M Employees' Welfare Fund No. 2 (formerly known as M&M Employees' Farm Equipment Sector Employees' Welfare Fund)

3. Mahindra World School Education Trust

4. M&M Benefit Trust

5. M&M Employees' Welfare Fund No. 3 (formerly known as Mahindra Spicer Limited Employees' Welfare Fund)

Mahindra & Mahindra Limited 193

 (c) The related party transactions are as under : (contd.)
Rupees crores
Sl. Nature of Transactions Subsidiaries Associates/ Joint KMP/KMP Welfare
No. Associates of Ventures/ Exercising Funds
Joint Significant
Subsidiaries Ventures of influence
Subsidiaries
1. Purchases :
Goods ................................................................................. 9,303.03 1,407.00 177.26 — —
(6,494.72) (1,422.54) (172.73) (—) (—)
Fixed Assets ....................................................................... 32.59 2.62 — — —
(19.06) (22.98) (—) (—) (—)
Services .............................................................................. 1,792.44 118.22 — — —
(1,659.36) (136.38) (—) (—) (—)
2. Sales :
Goods ................................................................................. 1,893.49 10.96 36.01 — —
(1,990.87) (9.21) (—) (—) (—)
Fixed Assets ....................................................................... 0.22 0.43 — — —
(0.84) (0.42) (—) (—) (—)
Services .............................................................................. 72.48 10.99 0.09 — —
(57.75) (3.11) (0.09) (—) (—)
3. Investments :
Purchases/Subscribed/Conversion ................................... 3,297.53 — — — —
(1,348.92) (885.60) (—) (—) (—)
Sales/Redemption/Conversion ........................................ 3,677.51 — — — —
(—) (318.79) (—) (—) (—)
4. Deputation of Personnel :
From Parties ...................................................................... 1.69 0.79 — — —
(1.45) (0.67) (—) (—) (—)
To Parties ........................................................................... 19.89 5.68 — — —
(16.31) (7.80) (—) (—) (—)
5. Managerial Remuneration............................................... — — — 12.97 —
(—) (—) (—) (11.96) (—)
6. Stock Options .................................................................... — — — # —
(—) (—) (—) (#) (—)
7. Finance :
Inter Corporate Deposits given....................................... 300.00 — — — —
(1.53) (—) (—) (—) (—)
Inter Corporate Deposits refunded by parties .............. 25.81 — — — —
(274.65) (41.83) (—) (—) (—)
Loan given ......................................................................... 1,200.00 — — 9.00 —
(—) (—) (—) (—) (—)
Refund of loan given ....................................................... — — — 4.50 —
(—) (—) (—) (—) (—)
Interest Income ................................................................. 39.58 — — 0.19 —
(33.81) (1.78) (—) (0.03) (—)
Interest Expense ............................................................... — — — — —
(0.03) (—) (—) (—) (—)
Dividend Received ............................................................ 246.04 167.36 3.55 — —
(272.73) (135.80) (3.54) (—) (—)
Security Deposits Paid ...................................................... 0.35 0.03 — — —
(0.19) (—) (—) (—) (—)
Security Deposits Received .............................................. 0.32 0.01 — — —
(0.06) (—) (—) (—) (—)
Share Application Money Given/(Converted) (Net) ..... — — — — —
(52.78) (—) (—) (—) (—)
# Refer Clause VI of Annexure VII to the Board's Report.
Previous year's figures are in brackets.

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(c) The related party transactions are as under : (contd.)

Rupees crores
Sl. Nature of Transactions Subsidiaries Associates/ Joint KMP/KMP Welfare
No. Associates of Ventures/ Exercising Funds
Joint Significant
Subsidiaries Ventures of influence
Subsidiaries
8. Dividends Distributed ...................................................... — — — 85.98 64.64
(—) (—) (—) (100.24) (75.29)

9. Guarantees given on behalf of Subsidiaries during the — — — — —

year, absorbed .................................................................. (469.48) (—) (—) (—) (—)
10. Other Transactions :
Other Income .................................................................... 18.03 0.85 — — 62.19
(13.40) (1.79) (—) (—) (72.57)
Other Expenses ................................................................. 20.42 0.17 — — —
(6.75) (0.12) (—) (—) (—)
Reimbursements received from parties ......................... 72.81 7.71 0.21 — 0.75
(166.44) (49.62) (0.06) (—) (—)
Reimbursements made to parties................................... 20.85 4.82 — — 0.08
(49.84) (7.16) (—) (—) (0.07)
Advances Received from parties, Refunded .................. — — — — —
(0.59) (—) (—) (—) (—)
Advances Given to parties ............................................... — — — 0.02 —
(5.94) (—) (—) (—) (—)
Advances given to parties Refunded/Converted .......... — — — — —
(5.15) (—) (—) (—) (—)
11. Outstandings :
Payable .............................................................................. 1,185.74 146.26 41.80 3.19 —
(471.73) (130.21) (35.23) (2.86) (—)
Receivable ......................................................................... 1,972.77 18.57 4.83 5.80 17.00
(935.26) (30.14) (1.98) (1.09) (17.00)
Inter Corporate Deposits given....................................... 479.77 4.59 — — —
(196.09) (4.59) (—) (—) (—)
12. Share Application Money Outstanding (Net) ............... — — — — —
(55.00) (—) (—) (—) (—)

13. Provision for Doubtful debts/advances ......................... 4.85 6.80 — — 10.00

(4.85) (7.22) (—) (—) (10.00)

14. Guarantees given on behalf of subsidiaries, absorbed. 1,455.26 — — — —

Amount of guarantees as on 31st March ....................... (1,344.48) (—) (—) (—) (—)

Previous year's figures are in brackets.

Mahindra & Mahindra Limited 195

The Significant related party transactions are as under : (contd.)

Sl. Nature of Subsidiaries Rupees Associates/Associates Rupees Joint Ventures/ Rupees

No. Transactions crores of Subsidiaries crores Joint Ventures crores
of Subsidiaries
1. Purchases — Mahindra Vehicle 8,974.51 Swaraj Engines 622.50 Mahindra Sona 175.12
Goods Manufacturers Limited (6,141.00) Limited (626.14) Limited (172.73)
Mahindra CIE 784.50
Automotive Limited (796.31)

2. Purchases — Mahindra Logistics Limited 1,189.83 Tech Mahindra Limited 113.58

Services (1,212.98) (131.13)

Mahindra Vehicle 271.44

Manufacturers Limited (—)
3. Sales — Goods Mahindra Vehicle 810.66 Swaraj Engines 10.61 Mitsubishi 36.01
Manufacturers Limited (813.52) Limited (5.22) Mahindra (—)
Agricultural
Mahindra USA Inc. 527.65 Tech Mahindra Limited 0.14 Machinery Co.,
(653.55) (3.44) Ltd.
NBS International Limited 188.74
(—)
Mahindra and Mahindra 163.85
South Africa (Proprietary) (—)
Limited
4. Sales — Services Mahindra Automobile 9.25 Mahindra CIE 4.19 Mahindra Sona 0.09
Distributor Private Limited (9.44) Automotive Limited (0.47) Limited (0.09)
Mahindra & Mahindra 13.03 Swaraj Engines 0.30
Financial Services Limited (14.94) Limited (—)
Mahindra Vehicle 12.81 Tech Mahindra Limited 6.49
Manufacturers Limited (—) (2.42)

Mahindra Holidays & 7.42

Resorts India Limited (9.46)
Mahindra Two Wheelers 5.77
Limited (6.33)

5. Investments — Mahindra Holdings Limited 5.71 Tech Mahindra Limited —

Purchases/ (—) (359.30)
Subscribed/ Mahindra Engineering and 168.00 Mahindra CIE —
Conversion Chemical Products Limited Automotive Limited
(—) (526.30)

Mahindra Reva Electric 209.00

Vehicles Limited (—)

Mahindra Two Wheelers 400.00

Limited (748.59)

Mahindra Vehicle 2,200.00

Manufacturers Limited (—)

Mahindra Heavy Engines —

Limited (180.00)

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The Significant related party transactions are as under : (contd.)

Sl. Nature of Subsidiaries Rupees Associates/Associates Rupees Joint Ventures/ Rupees

No. Transactions crores of Subsidiaries crores Joint Ventures crores
of Subsidiaries
6. Investments— Mahindra Vehicle 3,677.51 Tech Mahindra Limited —
Sales/Redemption/ Manufacturers Limited (—) (59.96)
Conversion

Mahindra CIE —
Automotive Limited (258.83)
7. Loan Given Mahindra Vehicle 1,200.00
Manufacturers Limited (—)

8. Advances Given Mahindra Lifespace —

Developers Limited (5.94)

9. Inter Corporate Mahindra & Mahindra 300.00

Deposits Given Financial Services Limited (—)

Mahindra HZPC Private —

Limited (1.53)
10. Inter Corporate Mahindra Two Wheelers — Mahindra CIE —
Deposits refunded Limited (235.50) Automotive Limited (41.83)
by parties

Bristlecone Limited 22.12

(—)

Mahindra Overseas 3.69

Investment Company (—)
(Mauritius) Limited

11. Guarantees Given Mahindra Two Wheelers —

Limited (469.48)

The Significant related party transactions with Key Management Personnel are as under :
Sl. Nature of Transaction Name of KMP Rupees crores
No.
1. Managerial Remuneration Mr. Anand Mahindra 6.59
(5.98)
Dr. Pawan Goenka 6.38
(5.98)
Previous year’s figures are in brackets.
Note:
1. Consequent to the Scheme of Arrangement referred to in Note 37 transactions entered into from 1st April, 2014 to 9 th December, 2014 with
the companies mentioned below, have been disclosed as transactions entered into with Mahindra CIE Automotive Limited.
a. Mahindra Ugine Steel Company Limited
b. Mahindra Gears International Limited
c. Mahindra Investments (India) Private Limited

2. Consequent to the Scheme of Arrangement referred to in Note 38 transactions entered into from 1st April 2014 to 7th December, 2014 with
Mahindra Engineering Services Limited, have been disclosed as transactions entered into with Tech Mahindra Limited.

Mahindra & Mahindra Limited 197

3. (a) Disclosure required under Section 186(4) of the Companies Act, 2013 for loans and guarantees:

(Rupees crores)
Sl. Name Relation Amount as at 31 st
Amount as at 31st
No. March, 2016 March, 2015
(Net of provision) (Net of provision)
1. Inter Corporate deposits and Loans
Bristlecone Limited Subsidiary 96.73 113.38
Mahindra Overseas Investment Company (Mauritius) Limited Subsidiary 77.18 76.86
Mahindra Gujarat Tractors Limited Subsidiary 1.00 1.00
Mahindra Agri Solutions Limited (Formerly known as Mahindra Subsidiary 0.68 0.68
Shubhlabh Services Ltd.)
Mahindra World School Education Trust Welfare Fund 7.00 7.00
Mahindra & Mahindra Financial Services Limited Subsidiary 300.00 —
Mahindra Vehicle Manufacturers Limited Subsidiary 1,200.00 —

2. Guarantees
Mahindra Overseas Investment Company (Mauritius) Limited Subsidiary 927.57 875.00
Mahindra Two Wheelers Limited Subsidiary 527.69 469.48

Note: During the year inter corporate deposit of Rs. Nil crores (2015 : Rs. 1.53 crores) was given to Mahindra HZPC Private Limited
(a subsidiary) and the same has been repaid during the year.
Above inter corporate deposits and loans have been given for general business purposes (including investment purposes) and
guarantees have been given for meeting their investment purchase obligations.
(b) Refer Note 13(A) for investments.

43. The outstanding derivative instruments and unhedged foreign currency exposures as on 31st March, 2016 :
The Company has outstanding foreign exchange forward contracts to sell US $ 9.90 crores (2015 : US $ 13.30 crores), EURO 0.60 crores
(2015 : EURO 0.50 crores), AUD 0.90 crores (2015 : Nil crores) & ZAR 16.00 crores (2015 : Nil crores). In addition, the Company has also taken
foreign exchange forward contract for US $ 1.71 crores to buy US $ (2015 : Nil crores)
The foreign currency exposures not hedged by derivative instruments or otherwise as on 31st March, 2016 are – Receivables of
ZAR 11.80 crores, US $ 4.68 crores, KRW 5.12 crores, AUD 0.72 crores, GBP 0.20 crores, EURO 0.12 crores and Payables (excluding Borrowings,
covered in the paragraph below) of JPY 16.22 crores, SEK 0.01 crores and CHF * crores (2015 : Receivables of US $ 8.83 crores, AUD 0.58 crores,
GBP 0.25 crores and Payables (excluding Borrowings, covered in the paragraph below) of JPY 33.46 crores, KRW 7.42 crores, EURO 0.46 crores,
ZAR 0.15 crores, SEK 0.04 crores and CHF * crores).
The Company has outstanding foreign currency borrowings of US $ 15.50 crores (2015 : US $ 31.70 crores). Currency risk on US $ liability of
US $ 5.50 crores has been hedged by way of forward contracts (2015 : US $ 1.70 crores). The US $ interest rate risk on borrowings worth
US $ 15.00 crores has been hedged using interest rate swaps.
* denotes amounts less than 50,000 of respective currency.

44. Joint Venture Disclosure :

(i) The Company’s Jointly Controlled Entity is :
Name of the Entity Country of % of ownership interest
Incorporation 2016 2015
Mahindra Sona Limited ................................................................................... India 29.77% 29.77%
Mitsubishi Mahindra Agricultural Machinery Co., Limited Japan 33.33%
(w.e.f. 1st October, 2015)#................................................................................

# In addition to JPY 750 million Common Stock (which represents 33.33% of the Common Stock), the Company owns the entire JPY 2,250
million "Class A" shares (shares with no voting rights); "Class A" shares have rights over dividend and liquidation on an equal basis with
Common Stock.

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(ii) The Company's share of each of the Assets, Liabilities, Income and Expenses (each without elimination of the effect of transactions
between the Company and the Joint Venture) with respect to its interest in this Jointly Controlled Entity is :
Rupees crores
2016 2015
I. ASSETS
1. Fixed Assets ........................................................................................................................... 429.55 19.03
2. Non-Current Investments .................................................................................................... 58.73 —
3. Long Term Loans and Advances ......................................................................................... 1.93 1.18
4. Current Investments ............................................................................................................. 0.01 0.01
5. Inventories ............................................................................................................................. 334.38 14.36
6. Trade Receivables ................................................................................................................. 515.59 30.20
7. Cash and Bank Balances ...................................................................................................... 312.03 5.08
8. Short Term Loans and Advances......................................................................................... 1.81 1.31
9. Other Current Assets ........................................................................................................... 28.67 2.46
10. Deferred Tax Assets.............................................................................................................. 6.90 —
11. Other Non-Current Assets ................................................................................................... 57.44 —
II. LIABILITIES
1. Deferred Tax Liabilities ........................................................................................................ 2.95 1.67
2. Other Long Term Liabilities ................................................................................................. 227.14 1.63
3. Long Term Provisions ........................................................................................................... 7.87 1.63
4. Short Term Borrowings ........................................................................................................ 122.79 2.23
5. Trade Payables ...................................................................................................................... 686.87 16.83
6. Other Current Liabilities ...................................................................................................... 105.46 1.96
7. Short Term Provisions .......................................................................................................... 17.33 5.74
8. Long Term Borrowings......................................................................................................... 2.88 —
III. INCOME
1. Revenue from Operations ................................................................................................... 1,024.78 116.53
2. Other Income ........................................................................................................................ 2.69 1.14
IV. EXPENSES
1. Materials consumed and changes in inventories .............................................................. 797.22 74.43
2. Manufacturing, Selling expenses, Interest and Finance charges .................................... 224.35 27.78
3. Depreciation and Amortisation Expense ........................................................................... 10.52 2.10
4. Exceptional Items ................................................................................................................. 1.34 —
5. Extraordinary (gain)/loss ..................................................................................................... (14.64) —
6. Provision for taxation .......................................................................................................... 17.59 4.13
V. OTHER MATTERS
1. Contingent Liabilities ........................................................................................................... 183.14 5.69
2. Capital Commitments .......................................................................................................... 5.74 1.20

45. Value of Imports on C.I.F. basis accounted for during the year :
Rupees crores
2016 2015
(i) Raw Materials .............................................................................................................................. 3.97 5.27
(ii) Components, Spare Parts etc. ..................................................................................................... 431.06 461.76
(iii) Capital Goods ............................................................................................................................... 255.04 259.09
(iv) Items imported for Resale ........................................................................................................... 3.53 1.03
693.60 727.15

Notes :
(i) Credits, if any, recoverable in respect of short landings etc. are not considered.
(ii) The value of imports shown above includes :
(a) Imports on C&F basis as per supplier's invoices Rs. 0.25 crores (2015 : Rs. 63.03 crores).
(b) Imports on 'cost' basis Rs. 479.45 crores (2015 : Rs. 595.12 crores).

Mahindra & Mahindra Limited 199

46. Expenditure in Foreign Currencies (Subject to deduction of tax where applicable) :
Rupees crores
2016 2015
(i) Professional and Consultancy fees [including Rs. 32.64 crores (2015 : Rs. 23.70 crores)
capitalised] ................................................................................................................................. 115.38 133.45
(ii) Interest and Commitment charges .......................................................................................... 67.97 70.46
(iii) Royalty ........................................................................................................................................ 2.26 1.14
(iv) Development Expenditure & Computer Software in Intangible Assets ............................. 426.08 299.04
(v) Others [including Rs. 8.78 crores (2015 : Rs. 21.85 crores) capitalised] .............................. 184.31 205.77

796.00 709.86

47. Remittance in Foreign Currency on account of dividends to non-resident shareholders :

Number of Amount remitted Dividend relating to
Shareholders Equity shares Rupees crores

2016 : 1 3,51,21,534 42.15 Year ended 31st March, 2015

2015 : 1 3,21,15,429 44.96 Year ended 31st March, 2014

48. Earnings in foreign exchange :

Rupees crores
2016 2015
(i) Export of goods on F.O.B. basis................................................................................................ 2,341.80 2,224.79
(ii) Interest ........................................................................................................................................ 13.90 15.64
(iii) Consultancy fees......................................................................................................................... — 4.19
(iv) Others (freight etc.) ................................................................................................................... 72.22 91.38

2,427.92 2,336.00

Note :
F.O.B. value of exports includes local sales which qualify for export benefits and for which payment is receivable in foreign currency and local/
export sales under rupee credit which qualify for export benefits.

200 Annual Report 2015-16

 49. Segment Information :
Segment Report For the year ended 31st March, 2016
Overview
Company

Primary Segment Disclosure - Business Segment :

Rupees crores
Particulars 2016 2015
Automotive Farm Other Total Eliminations Total Automotive Farm Other Total Eliminations Total
Equipment Segment Equipment Segment
Report
Board’s

Revenue

Net External Sales ..................................... 28,132.92 12,731.73 20.33 40,884.98 — 40,884.98 25,223.62 13,197.59 23.62 38,444.83 — 38,444.83
Inter Segment Sales .................................. 17.52 9.52 — 27.04 (27.04) — 11.63 9.42 — 21.05 (21.05) —
Total Revenue ............................................ 28,150.44 12,741.25 20.33 40,912.02 (27.04) 40,884.98 25,235.25 13,207.01 23.62 38,465.88 (21.05) 38,444.83
Result

Segment Result.......................................... 2,116.64 1,997.75 3.00 4,117.39 — 4,117.39 1,833.08 1,967.43 4.82 3,805.33 — 3,805.33
and Analysis

Less :
Finance costs .............................................. 155.29 214.30
Unallocated corporate income net of
Management Discussion

unallocated expense ................................. (199.06) (242.14)

Exceptional items unallocable to
segments .................................................... (68.74) (335.72)
Profit before tax ....................................... 4,229.90 4,168.89
Corporate
Governance

Income Taxes.............................................. 1,062.42 847.78

Profit after tax .......................................... 3,167.48 3,321.11

OTHER INFORMATION

Segment Assets ......................................... 12,195.80 5,375.71 54.07 17,625.58 — 17,625.58 10,874.43 5,366.78 11.89 16,253.10 — 16,253.10
Report

Unallocated Corporate Assets ................. 18,786.76 16,691.77

Total Assets................................................ 12,195.80 5,375.71 54.07 17,625.58 — 36,412.34 10,874.43 5,366.78 11.89 16,253.10 — 32,944.87

Segment Liabilities .................................... 6,605.84 2,111.58 13.54 8,730.96 — 8,730.96 5,171.51 1,846.32 7.04 7,024.87 — 7,024.87
Business Responsibility

Unallocated Corporate Liabilities ............ 5,974.19 6,664.91

Total Liabilities .......................................... 6,605.84 2,111.58 13.54 8,730.96 — 14,705.15 5,171.51 1,846.32 7.04 7,024.87 — 13,689.78

Capital Expenditure .................................. 1,883.88 335.31 17.02 2,236.21 — 2,236.21 1,654.99 336.39 1.14 1,992.52 — 1,992.52
Accounts
Standalone

Depreciation and Amortisation Expense 847.15 228.43 0.28 1,075.86 — 1,075.86 716.94 221.43 0.30 938.67 — 938.67

Non cash expenses other than

depreciation ............................................... 8.56 — — 8.56 — 8.56 19.38 — — 19.38 — 19.38

Mahindra & Mahindra Limited

Accounts
Consolidated

201
 Secondary Segment Disclosure - Geographical Segment :
Rupees crores
Particulars 2016 2015
Domestic Overseas Total Domestic Overseas Total
Revenue from External Customers .... 37,916.06 2,968.92 40,884.98 35,645.94 2,798.89 38,444.83
Segment Assets.................................... 17,625.58 — 17,625.58 16,253.10 — 16,253.10
Capital Expenditure ............................ 2,236.21 — 2,236.21 1,992.52 — 1,992.52

Notes :
1 Business Segments :
The Company has considered business segments as the primary segment for disclosure.
The segment have been identified taking into account the organisational structure as well as the differing risks and returns of these
segments.
Automotive Segment comprises of sale of automobiles, spare parts and related services.
Farm Equipment Segment comprises of sale of tractors, spare parts and related services.

2 Secondary Segments :
The geographical segments are considered for disclosure as secondary segment.
Domestic Segment includes sales to customers located in India and service income accrued in India.
Overseas Segment includes sales and services rendered to customers located outside India.

50. Previous year's figures have been regrouped/restated wherever necessary.

Signatures to Notes 1 to 50

}
Deepak S. Parekh Anand G. Mahindra Chairman & Managing Director
Nadir B. Godrej
M. M. Murugappan Dr. Pawan Goenka Executive Director & Group President
R. K. Kulkarni (Auto and Farm Sector)
Directors
Anupam Puri V. S. Parthasarathy Group Chief Financial Officer, Group CIO &
Vishakha N. Desai President (Group Finance and M&A)
Vikram Singh Mehta
S. B. Mainak Narayan Shankar Company Secretary

Mumbai, 30 th May, 2016

202 Annual Report 2015-16

Consolidated
Accounts
 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Independent Auditors’ Report to the members of Mahindra & Mahindra Limited

Report on the Consolidated Financial Statements Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance
1. We have audited the accompanying consolidated financial
about whether the consolidated financial statements are free
statements of Mahindra & Mahindra Limited (hereinafter
from material misstatement.
referred to as “the Holding Company”) and its subsidiaries (the
Holding Company and its subsidiaries together referred to as “the 5. An audit involves performing procedures to obtain audit evidence
Group”), its associates and jointly controlled entities, comprising about the amounts and the disclosures in the consolidated
of the Consolidated Balance Sheet as at 31st March, 2016, the financial statements. The procedures selected depend on the
Consolidated Statement of Profit and Loss, the Consolidated auditor’s judgement, including the assessment of the risks of
Cash Flow Statement for the year then ended, and a summary material misstatement of the consolidated financial statements,
of the significant accounting policies and other explanatory whether due to fraud or error. In making those risk assessments,
information (hereinafter referred to as “the Consolidated the auditor considers internal financial control relevant to the
Financial Statements”). Holding Company’s preparation of the consolidated financial
statements that give a true and fair view in order to design audit
Management’s Responsibility for the Consolidated Financial procedures that are appropriate in the circumstances. An audit
Statements also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates
2. The Holding Company’s Board of Directors is responsible for the
made by the Holding Company’s Board of Directors, as well as
preparation of these consolidated financial statements in terms of
evaluating the overall presentation of the consolidated financial
the requirements of the Companies Act, 2013 (hereinafter referred
statements.
to as “the Act”) that give a true and fair view of the consolidated
financial position, consolidated financial performance and 6. We believe that the audit evidence obtained by us and the
consolidated cash flows of the Group including its Associates audit evidence obtained by the other auditors in terms of their
and Jointly controlled entities in accordance with the accounting reports referred to in para 8 of the Other Matters paragraph
principles generally accepted in India, including the Accounting below, is sufficient and appropriate to provide a basis for our
Standards prescribed under Section 133 of the Act, as applicable. audit opinion on the consolidated financial statements.
The respective Board of Directors of the companies included in
Opinion
the Group and of its associates and jointly controlled entities are
responsible for maintenance of adequate accounting records in 7. In our opinion and to the best of our information and according
accordance with the provisions of the Act for safeguarding the to the explanations given to us, the aforesaid consolidated
assets of the Group and for preventing and detecting frauds and financial statements give the information required by the Act
other irregularities; the selection and application of appropriate in the manner so required and give a true and fair view in
accounting policies; making judgments and estimates that are conformity with the accounting principles generally accepted
reasonable and prudent; and the design, implementation and in India, of the consolidated state of affairs of the Group, its
maintenance of adequate internal financial controls, that were associates and jointly controlled entities as at 31st March, 2016,
operating effectively for ensuring the accuracy and completeness and their consolidated profit and their consolidated cash flows
of the accounting records, relevant to the preparation and for the year ended on that date.
presentation of the financial statements that give a true and
Other Matters
fair view and are free from material misstatement, whether
due to fraud or error, which have been used for the purpose 8. We did not audit the financial statements of one hundred and
of preparation of the consolidated financial statements by the twenty two subsidiaries and six jointly controlled entities, whose
Directors of the Holding Company, as aforesaid. financial statements reflect the Group’s share of total assets of
Rs. 66,428.38 crores as at 31 March, 2016, and the Group’s share
Auditor’s Responsibility of total revenues of Rs. 36,037.68 crores and net cash outflows
3. Our responsibility is to express an opinion on these consolidated amounting to Rs. 171.41 crores for the year ended on that date,
financial statements based on our audit. While conducting the as considered in the consolidated financial statements. The
audit, we have taken into account the provisions of the Act, consolidated financial statements also include the Group’s share
the accounting and auditing standards and matters which are of net profit of Rs. 148.44 crores for the year ended 31 March,
required to be included in the audit report under the provisions 2016, as considered in the consolidated financial statements,
of the Act and the Rules made thereunder. in respect of nine associates, whose financial statements have
not been audited by us. These financial statements have been
4. We conducted our audit in accordance with the Standards on audited by other auditors whose reports have been furnished
Auditing specified under Section 143(10) of the Act. Those to us by the Management and our opinion on the consolidated

Mahindra & Mahindra Limited 205

 financial statements, in so far as it relates to the amounts and (f) With respect to adequacy of internal financial controls
disclosures included in respect of these subsidiaries, jointly over financial reporting and the operating effectiveness of
controlled entities and associates, based solely on the reports of such controls, refer to our separate Report in “Annexure
the other auditors. A”, which is based on auditors’ reports of the Holding
company, subsidiary companies, associate companies and
9. Our opinion on the consolidated financial statements, and our
jointly controlled companies incorporated in India, where
report on Other Legal and Regulatory Requirements below, is
applicable. Our report expresses an unmodified opinion on
not modified in respect of the above matters with respect to our
the adequacy and operating effectiveness of the Holding
reliance on the work done and the reports of the other auditors
company’s, subsidiary company’s, associate company’s and
and the financial statements.
jointly controlled company’s (incorporated in India) internal
Report on Other Legal and Regulatory Requirements financial controls over financial reporting.

10. As required by Section 143(3) of the Act, we report, to the extent (g) With respect to the other matters to be included in
applicable, that: the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditor’s) Rules, 2014, in our opinion
(a) We have sought and obtained all the information and
and to the best of our information and according to the
explanations which to the best of our knowledge and
explanations given to us:
belief were necessary for the purposes of our audit of the
aforesaid consolidated financial statements. i) The consolidated financial statements disclose the
impact of pending litigations on the consolidated
(b) In our opinion, proper books of account as required by
financial position of the Group, its associates and jointly
law relating to preparation of the aforesaid consolidated
controlled entities in accordance with the generally
financial statements have been kept so far as it appears
accepted accounting practice – also refer Note 33(A) to
from our examination of those books and the reports of
the consolidated financial statements.
the other auditors.
ii) The Group, its associates and jointly controlled entities
(c) The Consolidated Balance Sheet, the Consolidated Statement
has made provision where required under any law or
of Profit and Loss, and the Consolidated Cash Flow
accounting standards for material foreseeable losses
Statement dealt with by this Report are in agreement with
on long-terms contracts including derivative contracts.
the relevant books of account maintained for the purpose
of preparation of the consolidated financial statements. iii) There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
(d) In our opinion, the aforesaid consolidated financial
and Protection Fund by the Holding Company and its
statements comply with the Accounting Standards
subsidiary companies, associate companies and jointly
prescribed under Section 133 of the Act, as applicable.
controlled companies incorporated in India.
(e) On the basis of the written representations received from
the directors of the Holding Company as on 31st March, 2016
taken on record by the Board of Directors of the Holding For DELOITTE HASKINS & SELLS
Company and the reports of the statutory auditors of its Chartered Accountants
subsidiary companies, associate companies and jointly (Firm’s Registration No. 117364W)
controlled companies incorporated in India, none of the
directors of the Group companies, its associate companies Shyamak R Tata
and jointly controlled companies incorporated in India is Partner
disqualified as on 31st March, 2016 from being appointed as (Membership No. 38320)
a director in terms of Section 164 (2) of the Act. Mumbai, 30 th May, 2016.

206 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Annexure A to the Independent Auditor’s Report

(Referred to in paragraph 10(f) under ‘Report on Other Legal and Regulatory Requirements’ of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Meaning of Internal Financial Controls Over Financial Reporting
Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 A company’s internal financial control over financial reporting is a process
(“the Act”) designed to provide reasonable assurance regarding the reliability of
In conjunction with our audit of the consolidated financial statements financial reporting and the preparation of financial statements for
of the Company as of and for the year ended 31st March, 2016, we external purposes in accordance with generally accepted accounting
have audited the internal financial controls over financial reporting of principles. A company’s internal financial control over financial reporting
Mahindra & Mahindra Limited (hereinafter referred to as “the Holding includes those policies and procedures that (1) pertain to the maintenance
Company”) and its subsidiary companies, its associate companies and of records that, in reasonable detail, accurately and fairly reflect the
jointly controlled companies, which are companies incorporated in India, transactions and dispositions of the assets of the company; (2) provide
as of that date. reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally
Management’s Responsibility for Internal Financial Controls
accepted accounting principles, and that receipts and expenditures of
The respective Boards of Directors of the Holding Company, its subsidiary the company are being made only in accordance with authorisations of
companies, its associate companies and jointly controlled companies, management and directors of the company; and (3) provide reasonable
which are companies incorporated in India, are responsible for establishing assurance regarding prevention or timely detection of unauthorised
and maintaining internal financial controls based on the internal control acquisition, use, or disposition of the company’s assets that could have a
over financial reporting criteria established by the Company considering material effect on the financial statements.
the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting Inherent Limitations of Internal Financial Controls Over Financial
issued by the Institute of Chartered Accountants of India (ICAI). These Reporting
responsibilities include the design, implementation and maintenance Because of the inherent limitations of internal financial controls over
of adequate internal financial controls that were operating effectively financial reporting, including the possibility of collusion or improper
for ensuring the orderly and efficient conduct of its business, including management override of controls, material misstatements due to error or
adherence to the respective company’s policies, the safeguarding fraud may occur and not be detected. Also, projections of any evaluation
of its assets, the prevention and detection of frauds and errors, the of the internal financial controls over financial reporting to future periods
accuracy and completeness of the accounting records, and the timely are subject to the risk that the internal financial control over financial
preparation of reliable financial information, as required under the reporting may become inadequate because of changes in conditions,
Companies Act, 2013. or that the degree of compliance with the policies or procedures may
deteriorate.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal Opinion
financial controls over financial reporting based on our audit. We In our opinion to the best of our information and according to the
conducted our audit in accordance with the Guidance Note on Audit explanations given to us, the Holding Company, its subsidiary companies,
of Internal Financial Controls Over Financial Reporting (the “Guidance its associate companies and jointly controlled companies, which are
Note”) issued by the Institute of Chartered Accountants of India and companies incorporated in India, have, in all material respects, an
the Standards on Auditing, prescribed under Section 143(10) of the adequate internal financial controls system over financial reporting and
Companies Act, 2013, to the extent applicable to an audit of internal such internal financial controls over financial reporting were operating
financial controls. Those Standards and the Guidance Note require that effectively as at 31st March, 2016, based on the internal control over
we comply with ethical requirements and plan and perform the audit to financial reporting criteria established by the Company considering the
obtain reasonable assurance about whether adequate internal financial essential components of internal control stated in the Guidance Note on
controls over financial reporting was established and maintained and if Audit of Internal Financial Controls Over Financial Reporting issued by the
such controls operated effectively in all material respects. Institute of Chartered Accountants of India.

Our audit involves performing procedures to obtain audit evidence about Other Matters
the adequacy of the internal financial controls system over financial
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy
reporting and their operating effectiveness. Our audit of internal financial
and operating effectiveness of the internal financial controls over financial
controls over financial reporting included obtaining an understanding of
reporting insofar as it relates to forty six subsidiary companies, eleven
internal financial controls over financial reporting, assessing the risk that
associate companies and two jointly controlled companies, which are
a material weakness exists, and testing and evaluating the design and
companies incorporated in India, is based on the corresponding reports
operating effectiveness of internal control based on the assessed risk.
of the auditors of such companies incorporated in India.
The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. For DELOITTE HASKINS & SELLS

We believe that the audit evidence we have obtained and the audit Chartered Accountants
evidence obtained by the other auditors of the subsidiary companies, (Firm’s Registration No. 117364W)
associate companies and joint controlled companies, which are companies Shyamak R Tata
incorporated in India, in terms of their reports referred to in the Other Partner
Matters paragraph below, is sufficient and appropriate to provide a basis (Membership No. 38320)
for our audit opinion on the Company’s internal financial controls system
over financial reporting. Mumbai, 30 th May, 2016.

Mahindra & Mahindra Limited 207

Consolidated Balance Sheet as at 31 st
March, 2016
Rupees crores
Note 2016 2015
I. EQUITY AND LIABILITIES
SHAREHOLDERS’ FUNDS :
(a) Share Capital .................................................................................... 4 296.32 295.70
(b) Reserves and Surplus....................................................................... 5 28,323.32 25,560.68
28,619.64 25,856.38
MINORITY INTEREST 6,327.03 5,892.23
NON-CURRENT LIABILITIES :
(a) Long Term Borrowings.................................................................... 6 25,096.30 22,327.03
(b) Deferred Tax Liabilities (Net) ......................................................... 7A 1,552.03 1,286.83
(c) Other Long Term Liabilities ............................................................ 8 2,980.44 2,508.76
(d) Long Term Provisions ...................................................................... 9 3,590.33 3,239.95
33,219.10 29,362.57
CURRENT LIABILITIES :
(a) Short Term Borrowings ................................................................... 10 8,250.69 7,177.44
(b) Trade Payables : 11
– Micro and Small enterprises .................................................. 168.59 112.45
– Other than Micro and Small enterprises (including
acceptances) ............................................................................ 13,459.03 11,308.82
13,627.62 11,421.27
(c) Other Current Liabilities ................................................................. 12 15,868.23 12,771.87
(d) Short Term Provisions ..................................................................... 13 2,310.58 2,362.22
40,057.12 33,732.80
Total ............. 1,08,222.89 94,843.98

II. ASSETS
NON-CURRENT ASSETS :
(a) Fixed Assets :
Tangible Assets ................................................................................ 14A 19,578.42 17,247.09
Intangible Assets ............................................................................. 14B 2,171.49 1,035.38
Capital Work-in-Progress ................................................................ 806.00 1,272.54
Intangible Assets Under Development ......................................... 1,630.03 1,759.60
24,185.94 21,314.61
(b) Goodwill on Consolidation ............................................................. 779.46 764.27
(c) Non Current Investments................................................................ 15A 8,744.17 7,898.99
(d) Deferred Tax Assets (Net)............................................................... 7B 709.14 467.77
(e) Long Term Loans and Advances .................................................... 16 26,604.06 24,066.47
(f) Other Non Current Assets .............................................................. 17 655.13 581.76
61,677.90 55,093.87
CURRENT ASSETS :
(a) Current Investments ........................................................................ 15B 3,432.68 2,128.15
(b) Inventories ........................................................................................ 18 10,628.99 8,453.39
(c) Trade Receivables ............................................................................ 19 6,419.04 5,476.16
(d) Cash and Bank Balances ................................................................. 20 4,906.48 4,911.83
(e) Short Term Loans and Advances.................................................... 21 20,018.29 17,811.80
(f) Other Current Assets....................................................................... 22 1,139.51 968.78
46,544.99 39,750.11
Total ............. 1,08,222.89 94,843.98

}
The accompanying notes 1 to 43 are an integral part of the Financial Statements

In terms of our report attached.

Deepak S. Parekh Anand G. Mahindra Chairman & Managing Director
For Deloitte Haskins & Sells Nadir B. Godrej
M. M. Murugappan Dr. Pawan Goenka Executive Director & Group President
Chartered Accountants (Auto and Farm Sector)
R. K. Kulkarni
Directors
Anupam Puri V. S. Parthasarathy Group Chief Financial Officer, Group CIO &
Vishakha N. Desai President (Group Finance and M&A)
Shyamak R Tata
Vikram Singh Mehta
Partner S. B. Mainak Narayan Shankar Company Secretary
Mumbai, 30 th May, 2016 Mumbai, 30 th May, 2016

208 Annual Report 2015-16

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Overview Report and Analysis Governance Report Accounts Accounts

Consolidated Statement of Profit and Loss for the year ended 31 st

March, 2016
Rupees crores
Note 2016 2015
Revenue from Operations 23
Gross Revenue from Sale of Products and Services........................................................................ 74,436.05 66,903.19
Less : Excise Duty ............................................................................................................................... 4,650.08 3,541.23
Net Revenue from Sale of Products and Services........................................................................... 23 69,785.97 63,361.96
Other Operating Revenue ................................................................................................................. 23 8,229.63 8,086.04
Revenue from Operations (Net) ....................................................................................................... 78,015.60 71,448.00
Other Income ...................................................................................................................................... 24 541.00 525.03
Total Revenue .................................................................................................................................... 78,556.60 71,973.03

EXPENSES :
Cost of Materials Consumed ............................................................................................................. 25 43,173.41 40,386.83
Purchases of Stock-in-Trade ............................................................................................................... 2,690.53 2,188.73
Changes in Inventories of Finished Goods, Work-in-Progress, Stock-in-Trade and Manufactured
Components ........................................................................................................................................ 26 (524.37) 274.13
Employee Benefits Expense............................................................................................................... 27 7,992.24 7,202.49
Finance Costs ...................................................................................................................................... 28 3,372.94 3,156.69
Depreciation and Amortisation Expense ......................................................................................... 2,581.64 2,123.83
Other Expenses ................................................................................................................................... 29 15,524.95 12,887.31
74,811.34 68,220.01
Less : Cost of Manufactured/Purchased Products Capitalised ...................................................... 488.55 284.78
Total Expenses .................................................................................................................................... 74,322.79 67,935.23
Profit Before Exceptional Items and Tax ......................................................................................... 4,233.81 4,037.80
Add : Exceptional Items (Net) ........................................................................................................... 37 5.03 274.90
Profit Before Tax................................................................................................................................. 4,238.84 4,312.70
(Add)/Less : Tax Expense
Current Tax ................................................................................................................... 1,879.38 1,770.11
Less : MAT Credit Entitlement ................................................................................... 54.42 92.72
Net Current Tax ............................................................................................................ 1,824.96 1,677.39
Deferred Tax (Net) ....................................................................................................... 38.69 42.63
1,863.65 1,720.02
Profit for the year before share of Profit/(Loss) of Associates and Minority Interest ............... 2,375.19 2,592.68
Add/(Less) : Share of Profit/(Loss) of Associates for the year ...................................................... 975.93 788.70
Profit before Minority Interest ......................................................................................................... 3,351.12 3,381.38
Minority Share in (Profit)/Loss .......................................................................................................... (139.86) (243.91)
Net Profit for the year ....................................................................................................................... 3,211.26 3,137.47

Earnings per equity share 38

(Face value Rs. 5/- per share) (Rupees)
Basic ..................................................................................................................................................... 54.25 53.12
Diluted ................................................................................................................................................. 51.70 50.69

}
The accompanying notes 1 to 43 are an integral part of the Financial Statements
In terms of our report attached.
Deepak S. Parekh Anand G. Mahindra Chairman & Managing Director
For Deloitte Haskins & Sells Nadir B. Godrej
M. M. Murugappan Dr. Pawan Goenka Executive Director & Group President
Chartered Accountants (Auto and Farm Sector)
R. K. Kulkarni
Directors
Anupam Puri V. S. Parthasarathy Group Chief Financial Officer, Group CIO &
Vishakha N. Desai President (Group Finance and M&A)
Shyamak R Tata
Vikram Singh Mehta
Partner S. B. Mainak Narayan Shankar Company Secretary
Mumbai, 30 th May, 2016 Mumbai, 30 th May, 2016

Mahindra & Mahindra Limited 209

Consolidated Cash Flow Statement for the year ended 31st March, 2016

Rupees crores
2016 2015
A. CASH FLOW FROM OPERATING ACTIVITIES :
Profit before exceptional items and tax ............................................................................................. 4,233.81 4,037.80
Adjustments for :
Depreciation, Amortisation and Impairment ............................................................................. 2,612.30 2,127.58
Loss on Exchange (Net) ................................................................................................................ 164.10 83.51
Investment and Interest Income [Excluding Rs. 0.19 crores (2015 : Rs. 0.12 crores) in
respect of financial enterprises consolidated] ........................................................................... (347.70) (398.66)
Interest, Commitment and Finance charges [Excluding Rs. 2,867.60 crores (2015 :
Rs. 2,643.00 crores) in respect of financial enterprises consolidated] .................................... 505.34 513.69
Employee Stock Compensation Expense..................................................................................... 113.33 51.51
Profit on sale of Investments (Net) ............................................................................................. (59.80) (21.31)
Loss on fixed assets sold/scrapped/written off (Net)................................................................ 24.02 24.72
Write off of Intangible Assets Under Development ................................................................. 9.44 19.38
Provision for diminution in value of long term investment ..................................................... — 16.08
Excess of cost over fair value of current investments, reversed (Net) .................................... (2.90) (0.76)
3,018.13 2,415.74
Operating Profit before Working Capital changes ............................................................................ 7,251.94 6,453.54
Changes in :
Trade and other receivables ......................................................................................................... (240.53) (575.09)
Loans against Assets * .................................................................................................................. (4,966.82) (4,228.64)
Inventories ...................................................................................................................................... (1,275.44) (62.46)
Trade and other payables ............................................................................................................. 2,245.21 1,168.63
(4,237.58) (3,697.56)

Cash generated from operations ......................................................................................................... 3,014.36 2,755.98

Income Taxes paid (Net of refunds) .................................................................................................... (2,043.67) (1,701.12)
NET CASH FROM OPERATING ACTIVITIES ........................................................................................... 970.69 1,054.86
* In respect of financial enterprises consolidated.
B. CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of fixed assets ........................................................................................................................ (4,334.27) (4,758.93)
Sale of fixed assets ................................................................................................................................ 78.14 43.13
Purchase of investments ....................................................................................................................... (88,000.00) (80,046.58)
Sale of investments................................................................................................................................ 86,749.00 79,737.21
Interest received .................................................................................................................................... 279.28 355.56
Dividends received from Associate Companies .................................................................................. 192.15 155.89
Dividends received from others ........................................................................................................... 12.05 12.98
Bank deposits (Net) ............................................................................................................................... (330.52) (277.95)
Decrease in Earmarked & Margin account .......................................................................................... 122.30 220.93
Inter corporate deposits given ............................................................................................................. (4.00) (26.50)
Inter corporate deposits refunded....................................................................................................... 6.50 4.00
Repayment of loan given...................................................................................................................... 14.95 35.15
Purchase consideration paid on acquisition of holding interest in Subsidiaries & Joint (239.88) (60.96)
Ventures (Net) ........................................................................................................................................
Subscription (Net) received on divesture of Interest in Subsidiaries/Sale proceeds on disposal of
Subsidiaries ............................................................................................................................................. 199.95 400.78
Exceptional Items :
Sale of Long Term Investments.................................................................................................... 15.98 40.42
NET CASH USED IN INVESTING ACTIVITIES ......................................................................................... (5,238.37) (4,164.87)

210 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Consolidated Cash Flow Statement (contd.)

Rupees crores
2016 2015
C. CASH FLOW FROM FINANCING ACTIVITIES :
Proceeds from Issue of Share Capital (including Securities Premium)............................................. — 2.60
Proceeds from borrowings.................................................................................................................... 98,427.10 47,957.34
Repayments of borrowings ................................................................................................................... (94,097.75) (44,328.40)
Net increase/(decrease) in Loans repayable on demand and cash credit ....................................... 1,250.64 (273.75)
Dividends paid........................................................................................................................................ (1,067.94) (1,199.64)
Interest, Commitment and Finance charges paid .............................................................................. (540.59) (488.77)

NET CASH FROM FINANCING ACTIVITIES ............................................................................................ 3,971.46 1,669.38

NET DECREASE IN CASH AND CASH EQUIVALENTS........................................................................... (296.22) (1,440.63)

OPENING CASH AND CASH EQUIVALENTS ......................................................................................... 2,999.67 4,632.88
CASH AND BANK BALANCE ON ACQUISITION/(DISPOSAL) OF SUBSIDIARIES (NET) ..................... 88.57 (192.58)

CLOSING CASH AND CASH EQUIVALENTS .......................................................................................... 2,792.02 2,999.67

Notes to the Consolidated Cash Flow Statement for the year ended 31st March, 2016
Rupees crores

2016 2015
1. The above Cash Flow Statement has been prepared under the ‘indirect method’ as set out in
Accounting Standard 3 ‘Cash Flow Statement’

2. Cash and Cash Equivalents ................................................................................................................... 2,792.02 2,999.67

Unrealised Loss on foreign currency Cash and Cash Equivalents..................................................... (0.19) (0.08)

2,791.83 2,999.59
Other Bank Balances ............................................................................................................................. 2,114.65 1,912.24

Cash and Bank Balances ........................................................................................................................ 4,906.48 4,911.83

}
In terms of our report attached.
Deepak S. Parekh Anand G. Mahindra Chairman & Managing Director
For Deloitte Haskins & Sells Nadir B. Godrej
M. M. Murugappan Dr. Pawan Goenka Executive Director & Group President
Chartered Accountants (Auto and Farm Sector)
R. K. Kulkarni
Directors
Anupam Puri V. S. Parthasarathy Group Chief Financial Officer, Group CIO &
Vishakha N. Desai President (Group Finance and M&A)
Shyamak R Tata
Vikram Singh Mehta
Partner S. B. Mainak Narayan Shankar Company Secretary
Mumbai, 30 th May, 2016 Mumbai, 30 th May, 2016

Mahindra & Mahindra Limited 211

Notes forming part of the Consolidated Financial Statements for the year ended 31st March, 2016

1. The Consolidated Financial Statements relate to Mahindra & Mahindra Limited (M&M, the Company) and its subsidiaries, joint ventures and
associates. The Consolidated Financial Statements have been prepared in accordance with Accounting Standard 21 (AS 21) “Consolidated
Financial Statements”, Accounting Standard 23 (AS 23) “Accounting for Investment in Associates in Consolidated Financial Statements” and
Accounting Standard 27 (AS 27) “Financial Reporting of Interests in Joint Ventures” notified by the Companies (Accounting Standard) Rules,
2006. The Consolidated Financial Statements have been prepared on the following basis :
(a) Investments in Subsidiaries :
(i) The Financial Statements of the Company and its subsidiary companies have been combined on a line by line basis by adding
together the book values of like items of assets, liabilities, income and expenses. Intra group balances, intra group transactions and
unrealised profits or losses have been fully eliminated.
(ii) The difference between the costs of investment in the subsidiaries and the Company’s share of equity at the time of acquisition of
shares in the subsidiaries is recognised in the Financial Statements as Goodwill on consolidation or Capital Reserve on consolidation.
(iii) The difference between the proceeds from disposal of investment in a subsidiary and the carrying amount of its assets less liabilities
as of date of disposal is recognised in the Statement of Profit and Loss as profit or loss on disposal of investment in subsidiaries.
(iv) Minority Interest in the net assets of consolidated subsidiaries consists :
(a) the amount of equity attributable to minorities at the date on which investment in a subsidiary is made; and
(b) the minorities’ share of movements in equity since the date the parent subsidiary relationship comes into existence.
(v) The Financial Statements of the subsidiaries are drawn up to 31st March, 2016.
The subsidiaries (which along with Mahindra & Mahindra Limited, the parent, constitute the group) considered in the presentation of these
Consolidated Financial Statements are:
Proportion of ownership Proportion of voting power
Country of interest* where different
Name of the Subsidiary Company
Incorporation as at as at as at as at
31-03-2016 31-03-2015 31-03-2016 31-03-2015
Indian Subsidiaries
1. Mahindra First Choice Wheels Limited ........................................ India 45.50% 45.50%
2. Mahindra Lifespace Developers Limited ...................................... India 50.80% 50.83%
3. Mahindra Consulting Engineers Limited ..................................... India 59.01% 54.16%
4. Bristlecone India Limited ............................................................... India 76.87% 77.71% 100.00% 100.00%
5. Mahindra Engineering and Chemical Products Limited............. India 100.00% 100.00%
6. Mahindra Gujarat Tractor Limited ................................................ India 60.00% 60.00%
7. Mahindra Holidays & Resorts India Limited ................................ India 75.62% 75.64%
8. Mahindra Infrastructure Developers Limited .............................. India 50.80% 50.83% 100.00% 100.00%
9. Mahindra Intertrade Limited ........................................................ India 100.00% 100.00%
10. Mahindra & Mahindra Financial Services Limited ...................... India 51.58% 51.62%
11. Mahindra Steel Service Centre Limited........................................ India 61.00% 61.00%
12. Mahindra Agri Solutions Limited (Formerly known as
Mahindra Shubhlabh Services Limited) ....................................... India 100.00% 100.00%
13. NBS International Limited ............................................................. India 100.00% 100.00%
14. Mahindra Insurance Brokers Limited ........................................... India 43.84% 43.88% 85.00% 85.00%
15. Mahindra World City Developers Limited ................................... India 45.21% 45.24% 89.00% 89.00%
16. Mahindra Trucks and Buses Limited ............................................. India 100.00% 100.00%
17. Mahindra World City (Maharashtra) Limited .............................. India 50.80% 50.83% 100.00% 100.00%
18. Mahindra Automobile Distributor Private Limited ..................... India 95.00% 95.00%
19. Mahindra World City (Jaipur) Limited ......................................... India 37.59% 37.61% 74.00% 74.00%
20. Mahindra Integrated Township Limited ...................................... India 48.92% 48.95% 99.14% 99.14%
21. Mahindra Vehicle Manufacturers Limited ................................... India 100.00% 100.00%
22. Mahindra Hotels and Residences India Limited .......................... India 75.62% 75.64% 100.00% 100.00%
23. Knowledge Township Limited....................................................... India 50.80% 50.83% 100.00% 100.00%
24. Mahindra Holdings Limited........................................................... India 100.00% 100.00%
25. Mahindra Logistics Limited ........................................................... India 84.01% 84.01%

212 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Proportion of ownership Proportion of voting power

Country of interest* where different
Name of the Subsidiary Company
Incorporation as at as at as at as at
31-03-2016 31-03-2015 31-03-2016 31-03-2015
26. Mahindra Rural Housing Finance Limited ................................... India 45.13% 45.17% 87.50% 87.50%
27. Mahindra Residential Developers Limited ................................... India 48.92% 48.95% 100.00% 100.00%
28. Mahindra Aerospace Private Limited ........................................... India 66.67% 66.67%
29. Mahindra First Choice Services Limited ....................................... India 100.00% 100.00%
30. Mahindra Heavy Engines Limited (Formerly known as
Mahindra Heavy Engines Private Limited)................................... India 100.00% 100.00%
31. Mahindra Bebanco Developers Limited ....................................... India 35.56% 35.58% 70.00% 70.00%
32. Industrial Township (Maharashtra) Limited ................................ India 50.80% 50.83% 100.00% 100.00%
33. Mahindra Two Wheelers Limited ................................................. India 91.26% 88.91%
34. Defence Land Systems India Limited............................................ India 100.00% 100.00%
35. Mahindra Internet Commerce Private Limited............................ India 98.96% 96.22% 100.00% 100.00%
36. Retail Initiative Holdings Limited ................................................. India 100.00% 100.00%
37. Mahindra Retail Private Limited ................................................... India 98.96% 96.22%
38. Mahindra Electrical Steel Private Limited .................................... India 100.00% 100.00%
39. Raigad Industrial & Business Park Limited .................................. India 50.80% 50.83% 100.00% 100.00%
40. Auto Digitech Private Limited (Formerly known as Mahindra
Punjab Tractors Private Limited) ................................................... India 100.00% 100.00%
41. Mahindra Namaste Private Limited .............................................. India 59.01% 100.00% 100.00%
42. Mahindra Reva Electric Vehicles Limited (Formerly known as
Mahindra Reva Electric Vehicles Private Limited) ....................... India 93.70% 75.72%
43. Anthurium Developers Limited..................................................... India 50.80% 50.83% 100.00% 100.00%
44. Mahindra Integrated Business Solutions Private Limited .......... India 100.00% 100.00%
45. Mahindra Aerostructures Private Limited.................................... India 66.67% 66.67% 100.00% 100.00%
46. Mahindra Susten Private Limited (formerly known as
Mahindra EPC Services Private Limited) ...................................... India 100.00% 100.00%
47. Mahindra Telecommunications Investment Private Limited ...... India 100.00% 100.00%
48. Mahindra Sanyo Special Steel Private Limited ............................ India 51.00% 51.00%
49. Swaraj Automotive Limited (upto 1st February, 2016) India 71.19%
50. EPC Industrie Limited ..................................................................... India 54.76% 54.78%
51. Mahindra Defence Naval Systems Private Limited ..................... India 100.00% 100.00%
52. Mahindra Defence Systems Limited ............................................. India 100.00% 100.00%
53. Divine Heritage Hotels Private Limited # .................................... India 75.64% 100.00%
54. Gables Promoters Private Limited ................................................ India 75.62% 75.64% 100.00% 100.00%
55. 2 x 2 Logistics Private Limited....................................................... India 46.20% 46.20% 55.00% 55.00%
56. Holiday on Hills Resorts Private Limited # ................................... India 75.64% 100.00%
57. Industrial Cluster Private Limited ................................................. India 50.80% 50.83% 100.00% 100.00%
58. Mahindra Telephonic Integrated Systems Limited ..................... India 51.00% 74.00%
59. Mahindra HZPC Private Limited .................................................... India 59.95% 59.95%
60. Mahindra Asset Management Company Private Limited .......... India 51.58% 51.62% 100.00% 100.00%
61. Mahindra Renewables Private Limited (Formerly known as
Mahindra Offgrid Services Private Limited ................................. India 100.00% 100.00%
62. Mahindra Trustee Company Private Limited ............................... India 51.58% 51.62% 100.00% 100.00%
63. Brightsolar Renewable Energy Private Limited ........................... India 51.00% 100.00%
64. Cleansolar Renewable Energy Private Limited ............................ India 100.00% 100.00%
65. Mahindra Auto Steel Private Limited ........................................... India 51.00% 51.00%
66. Mahindra ‘Electoral Trust’ Company ............................................ India 100.00% 100.00%
67. Competent Hotels Private Limited # ............................................ India 75.64% 100.00%
68. Mahindra UNIVEG Private Limited ............................................... India 60.00% 60.00%
69. Lords Freight (India) Private Limited............................................ India 50.41% 50.41% 60.00% 60.00%
70. Mahindra eMarket Limited (formerly known as Mriyalguda
Farm Solution Limited) .................................................................. India 69.00% 69.00%

Mahindra & Mahindra Limited 213

 Proportion of ownership Proportion of voting power
Country of interest* where different
Name of the Subsidiary Company
Incorporation as at as at as at as at
31-03-2016 31-03-2015 31-03-2016 31-03-2015
71. Mahindra Industrial Park Chennai Limited.................................. India 27.13% 45.24% 60.00% 100.00%
72. Mahindra Water Utilities Limited (w.e.f. 27th July, 2015) ........... India 50.29% 99.00%
73. Gateway Housing Company Limited (w.e.f. 10 th March, 2016) . India 100.00%
74. MachinePulse Tech Private Limited (w.e.f. 5th January, 2016) ... India 100.00%
75. Divine Solren Private Limited (w.e.f. 8th May, 2015) ................... India 100.00%
76. Neo Solren Private Limited (w.e.f. 1st July, 2015) ........................ India 100.00%
77. Marvel Solren Private Limited (w.e.f. 10 th October, 2015).......... India 100.00%
78. Astra Solren Private Limited (w.e.f. 14th October, 2015)............. India 100.00%
79. Orizonte Business Solutions Limited (Formerly known as Mega
One Stop Farm Services Limited) (w.e.f. 25th November, 2015)........ India 100.00%

Foreign Subsidiaries
80. Mahindra Automotive Australia Pty. Limited ............................. Australia 100.00% 100.00%
81. Mahindra Aerospace Australia Pty. Limited ................................ Australia 66.67% 66.67% 100.00% 100.00%
82. Aerostaff Australia Pty. Limited ................................................... Australia 66.67% 66.67% 100.00% 100.00%
83. Gipp Aero Investments Pty. Limited............................................. Australia 50.07% 50.07% 75.10% 75.10%
84. Gippsaero Pty. Limited................................................................... Australia 50.07% 50.07% 100.00% 100.00%
85. GA8 Airvan Pty. Limited ................................................................ Australia 50.07% 50.07% 100.00% 100.00%
86. GA200 Pty. Limited ........................................................................ Australia 50.07% 50.07% 100.00% 100.00%
87. Airvan Flight Services Pty. Limited ............................................... Australia 50.07% 50.07% 100.00% 100.00%
88. Nomad TC Pty. Limited .................................................................. Australia 50.07% 50.07% 100.00% 100.00%
89. Airvan10 Pty. Limited (w.e.f. 10 th December, 2015) .................... Australia 50.07% 100.00%
90. Bristlecone Consulting Limited ..................................................... Canada 76.87% 77.71% 100.00% 100.00%
91. Bristlecone Limited ......................................................................... Cayman Islands 76.87% 77.71%
92. Mahindra Yueda (Yancheng) Tractor Company Limited ............ China 51.00% 51.00%
93. Ssangyong Motor (Shanghai) Company Limited ........................ China 73.23% 73.23% 100.00% 100.00%
94. Peugeot Motocycles S.A.S. ............................................................ France 46.54% 45.34% 51.00% 51.00%
95. Bristlecone GmbH ........................................................................... Germany 76.87% 77.71% 100.00% 100.00%
96. Peugeot Motocycles Deutschland GmbH..................................... Germany 46.54% 45.34% 100.00% 100.00%
97. Mahindra Europe S.r.l. .................................................................. Italy 100.00% 100.00%
98. Mahindra Graphic Research Design S.r.l. .................................... Italy 100.00% 100.00%
99. Mahindra Racing S.p.A. (formerly known as Mahindra Racing S.r.l.) ... Italy 100.00% 100.00%
100. Peugeot Motocycles Italia S.p.A. .................................................. Italy 46.54% 45.34% 100.00% 100.00%
101. Ssangyong Motor Company .......................................................... South Korea 73.23% 73.23%
102. SY Auto Capital Co., LTD. (w.e.f. 28th October, 2015) ................ South Korea 37.35% 51.00%
103. Convington S.a.r.l. .......................................................................... Luxemburg 75.62% 75.64% 100.00% 100.00%
104. Mahindra Two Wheelers Europe Holdings S.a.r.l. ...................... Luxemburg 91.26% 88.91% 100.00% 100.00%
105. Mahindra Overseas Investment Company (Mauritius) Limited . Mauritius 100.00% 100.00%
106. Mahindra-BT Investment Company (Mauritius) Limited ............ Mauritius 57.00% 57.00%
107. MHR Holdings (Mauritius) Limited .................................................. Mauritius 75.62% 75.64% 100.00% 100.00%
108. Bristlecone (Malaysia) Sdn. Bhd. ................................................. Malaysia 76.87% 77.71% 100.00% 100.00%
109. Heritage Bird (M) Sdn. Bhd. ........................................................ Malaysia 75.62% 75.64% 100.00% 100.00%
110. Ssangyong European Parts Center B.V. ........................................ Netherlands 73.23% 73.23% 100.00% 100.00%
111. Bristlecone (Singapore) Pte. Limited ............................................ Singapore 76.87% 77.71% 100.00% 100.00%
112. Mahindra and Mahindra South Africa (Proprietary) Limited ............. South Africa 100.00% 100.00%
113. Bristlecone International AG ......................................................... Switzerland 76.87% 77.71% 100.00% 100.00%
114. Mahindra MiddleEast Electrical Steel Service Centre (FZC) ...... U.A.E. 90.00% 90.00%
115. Mahindra Emirates Vehicle Armouring FZ-LLC ............................ U.A.E. 51.00% 51.00%
116. Bristlecone UK Limited .................................................................. U.K. 76.87% 77.71% 100.00% 100.00%

214 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Proportion of ownership Proportion of voting power

Country of interest* where different
Name of the Subsidiary Company
Incorporation as at as at as at as at
31-03-2016 31-03-2015 31-03-2016 31-03-2015
117. Mahindra Racing UK Limited ........................................................ U.K. 100.00% 100.00%
118. Mahindra International UK Ltd (w.e.f. 13th October, 2015)........ U.K. 100.00%
119. Mahindra USA Inc. ......................................................................... U.S.A. 100.00% 100.00%
120. Bristlecone Inc. .............................................................................. U.S.A. 76.87% 77.71% 100.00% 100.00%
121. Mahindra Tractor Assembly Inc. .................................................. U.S.A. 100.00% 100.00%
122. Mahindra North American Technical Center, Inc. ..................... U.S.A. 100.00% 100.00%
123. Infinity Hospitality Group Company Limited .............................. Thailand 55.94% 55.97% 100.00% 100.00%
124. MH Boutique Hospitality Limited ................................................. Thailand 37.05% 37.07% 49.00% 49.00%
125. Holiday Club Resort Oy (w.e.f. 2nd September, 2015) ................. Finland 64.73% 85.61%
126. HCR Management Oy (w.e.f. 2nd September, 2015).................... Finland 75.62% 100.00%
127. Kiinteistö Oy Himos Gardens (w.e.f. 2nd September, 2015)........ Finland 64.73% 100.00%
128. Suomen Vapaa-aikakiinteistöt Oy LKV (w.e.f. 2nd September, 2015) .... Finland 64.73% 100.00%
129. Kiinteistö Oy Himoksen Tähti 2 (w.e.f. 2nd September, 2015) ... Finland 64.73% 100.00%
130. Kiinteistö Oy Vanha Ykköstii (w.e.f. 2nd September, 2015) ........ Finland 64.73% 100.00%
131. Kiinteistö Oy Katinnurkka (w.e.f. 2nd September, 2015) ............ Finland 64.73% 100.00%
132. Kiinteistö Oy Tenetinlahti (w.e.f. 2nd September, 2015) .............. Finland 64.73% 100.00%
133. Kiinteistö Oy Mällösniemi (w.e.f. 2nd September, 2015) ............. Finland 64.73% 100.00%
134. Kiinteistö Oy Rauhan Ranta 1 (w.e.f. 2nd September, 2015) ...... Finland 64.73% 100.00%
135. Kiinteistö Oy Rauhan Ranta 2 (w.e.f. 2nd September, 2015) ...... Finland 64.73% 100.00%
136 Kiinteistö Oy Tiurunniemi (w.e.f. 2nd September, 2015) ............. Finland 64.73% 100.00%
137. Kiinteistö Oy Rauhan Liikekiinteistöt 1 (w.e.f. 2nd September, 2015)..... Finland 64.73% 100.00%
138. Supermarket Capri Oy (w.e.f. 2nd September, 2015) ................... Finland 64.73% 100.00%
139. Kiinteistö Oy Kylpyläntorni 1 (w.e.f. 2nd September, 2015) ....... Finland 64.73% 100.00%
140. Kiinteistö Oy Spa Lofts 2 (w.e.f. 2nd September, 2015) .............. Finland 64.73% 100.00%
141. Kiinteistö Oy Spa Lofts 3 (w.e.f. 2nd September, 2015) .............. Finland 64.73% 100.00%
142. Kiinteistö Oy Tunturinrivi (w.e.f. 2nd September, 2015).............. Finland 64.73% 100.00%
143. Caribia Service Oy (w.e.f. 2nd September, 2015) .......................... Finland 64.73% 100.00%
144. Kiinteistö Oy Kuusamon Pulkkajärvi 1 (w.e.f. 2nd September, 2015) ..... Finland 64.73% 100.00%
145. Saimaa Gardens Arena Oy (w.e.f. 19 th January, 2016) ................ Finland 64.73% 100.00%
146. Ownership Services Ab (w.e.f. 2nd September, 2015).................. Sweden 64.73% 100.00%
147. Are Semesterby A (w.e.f. 2nd September, 2015) .......................... Sweden 64.73% 100.00%
148. Are Semesterby B (w.e.f. 2nd September, 2015) .......................... Sweden 64.73% 100.00%
149. Are Semesterby C (w.e.f. 2nd September, 2015) .......................... Sweden 64.73% 100.00%
150. Are Semesterby D (w.e.f. 2nd September, 2015) .......................... Sweden 64.73% 100.00%
151. Are Villas 1 Ab (w.e.f. 2nd September, 2015) ............................... Sweden 64.73% 100.00%
152. Are Villas 2 Ab (w.e.f. 2nd September, 2015) ............................... Sweden 64.73% 100.00%
153. Holiday Club Sweden Ab Åre (w.e.f. 2nd September, 2015) ....... Sweden 64.73% 100.00%
154. Holiday Club Sport and Spa AB (w.e.f. 1st December, 2015) ...... Sweden 33.01% 51.00%
155. Holiday Club Rus LLC (w.e.f. 2nd September, 2015) ......................... Russia 64.73% 100.00%
156. Holiday Club Canarias Investments S.L.(w.e.f. 2nd September, 2015) .. Spain 64.73% 100.00%
157. Holiday Club Canarias Sales & Marketing S.L.
(w.e.f. 2nd September, 2015) ........................................................... Spain 64.73% 100.00%
158. Holiday Club Canarias Resort Management S.L.
(w.e.f. 2nd September, 2015) .......................................................... Spain 64.73% 100.00%
* excluding shares issued to ESOP Trusts of the respective entities/their holding companies but not allotted to employees as per the Guidance
Note on Accounting for Employee Share Based Payments issued by ‘The Institute of Chartered Accountants of India’.
# represents companies which ceased to be subsidiaries during the year as per scheme of arrangement. The appointed date and effective date
is 1st April, 2015 and 31st March, 2016 respectively.

Mahindra & Mahindra Limited 215

(b) Interests in Joint Ventures :
The Group’s interests in jointly controlled entities of the Group are :
Country of Percentage of ownership Percentage of ownership
Name of the Entity
Incorporation interest as at 31-03-2016 interest as at 31-03-2015
1. Mahindra Sona Limited .................................................................. India 29.77% 29.77%
2. Mahindra Water Utilities Limited** (upto 26th July, 2015) ......... India 50.00%
3. Mahindra Inframan Water Utilities Private Limited** ................ India 50.00% 50.00%
4. Mahindra Solar One Private Limited #$ ....................................... India 26.00% 26.00%
5. Mahindra Homes Private Limited^ ................................................ India 50.00% 50.00%
6. Mahindra Finance USA LLC@ ......................................................... U.S.A. 49.00% 49.00%
7. Arabian Dreams Hotel Apartments LLC £ .................................... U.A.E. 49.00% 49.00%
8. Jinan Qingqi Peugeot Motocycles Company Limited € .............. China 50.00% 50.00%
9. Mitsubishi Mahindra Agricultural Machinery Co., Ltd
(w.e.f 1st October, 2015) § .............................................................. Japan 33.33%
** Shareholding is through a subsidiary, Mahindra Infrastructure Developers Limited.
# Shareholding is through a subsidiary, Mahindra Holdings Limited.
@ Shareholding is through a subsidiary, Mahindra & Mahindra Financial Services Limited.
^ Shareholding is through a subsidiary, Mahindra Lifespace Developers Limited.
£ Shareholding is through a subsidiary, Mahindra Holidays & Resorts India Limited.
$ Mahindra Solar One Private Limited has two subsidiaries; Mahindra Suryaprakash Private Limited where it holds 69.90% and Mahindra Suryaurja Private Limited
where it holds 100%.
€ Shareholding is through a subsidiary, Peugeot Motocycles S.A.S.
§ In addition to JPY 750 million Common Stock (which represents 33.33% of the Common stock), the Company owns the entire JPY 2,250 million “Class A” shares
(shares with no voting rights); “Class A” shares have rights over dividend and liquidation on an equal basis with Common Stock.

The financial statements of the Joint Ventures are drawn up to 31st March, 2016
(c) Investments in Associates :
The Group’s Associates are :
Country of Percentage of ownership Percentage of ownership
Name of the Entity
Incorporation interest as at 31-03-2016 interest as at 31-03-2015
1. Mahindra Construction Company Limited.................................... India 37.49% 37.49%
2. Officemartindia.com Limited ......................................................... India 50.00% 50.00%
3. Rathna Bhoomi Enterprises Private Limited ** ............................ India 25.40% 25.41%
4. Kota Farm Services Limited ............................................................ India 45.00% 45.00%
5. Mega One Stop Farm Services Limited (upto 24th November, 2015) India 45.00%
6. Swaraj Engines Limited ................................................................... India 33.22% 33.22%
7. Mahindra & Mahindra Contech Limited # .................................... India 46.66% 46.66%
8. PSL Media & Communications Limited # ...................................... India 36.11% 36.11%
9. Tech Mahindra Limited ##.............................................................. India 26.51% 26.71%
10. Mahindra CIE Automotive Limited ................................................ India 20.18% € 20.21%
11. CIE Automotive, S.A. @................................................................... Spain 12.44% 12.44%
12. Kismat Developers Private Limited ^ ............................................ India 42.86% 42.86%
13. Topical Builders Private Limited ^ ................................................. India 50.00% 50.00%
14. Mahindra Tsubaki Conveyor Systems Private Limited † ............. India 49.00% 49.00%
15. Holiday Club Resort Oy (upto 1st September, 2015) £ ................. Finland 22.34%
16. Koy Sallan Kylpyla (w.e.f. 2nd September 2015) ≤ ........................ Finland 41.95%
17. Kiinteistö Oy Seniori-Saimaa (w.e.f. 2nd September 2015) ≤ ....... Finland 26.67%
18. Holiday Club Adventures Oy (w.e.f. 2nd September 2015) ≤ ....... Finland 25.68%
The financial statements of the Associates are drawn upto 31st March, 2016, other than for CIE Automotive, S.A. where it is upto 31st December, 2015.
** Shareholding is through a subsidiary, Mahindra Infrastructure Developers Limited.
# Shareholding is through the Company and its subsidiary, Mahindra Holdings Limited.
^ Shareholding is through a subsidiary, Mahindra Lifespace Developers Limited.
@ Shareholding is through a subsidiary, Mahindra Overseas Investment Company (Mauritius) Limited.
£ Shareholding is through a subsidiary, Convington S.à.r.l.
† Shareholding is through a subsidiary, Mahindra Engineering and Chemical Products Limited.
## Shareholding is through the Company and its subsidiaries, Mahindra Holdings Limited and Mahindra-BT Investment Company (Mauritius) Limited.
€ Shareholding is through a subsidiary, Mahindra Vehicle Manufacturers Limited
≤ Shareholding is through a subsidiary, Holiday Club Resort Oy.

216 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

2. Significant Accounting Policies :

(A) Basis of Accounting :

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India
(Indian GAAP) and comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with rule 7 of
the Companies (Accounts) Rules, 2014.

(B) Tangible Assets :

(a) (i) Tangible assets are carried at cost less depreciation except as stated in (ii) below. Cost includes financing cost relating to
borrowed funds attributable to the construction or acquisition of qualifying tangible assets upto the date the assets are ready
for use. Where the acquisition of depreciable tangible assets are financed through long term foreign currency loans (having a
term of 12 months or more at the time of their origination) the exchange differences on such loans are added to or subtracted
from the cost of such depreciable tangible assets.
When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account
and resultant profit (including capital profit) or loss, if any, is reflected in the Statement of Profit and Loss.
(ii) Land and Buildings, of the parent company had been revalued as at 31st October, 1984 at depreciated replacement values on
the basis of a valuation made by a firm of Chartered Surveyors and Valuers. The indices, if any, used are not stated in the
valuation.
(b) (i) Leasehold land is amortised over the period of the lease.
(ii) Depreciation on assets is calculated on Straight Line Method over its useful life estimated by management/the Company’s
expected usage pattern supported by technical assessment or on the basis of depreciation rates/useful lives prescribed under
respective local laws.

(C) Intangible Assets :

Intangible Assets are initially measured at cost and amortised so as to reflect the pattern in which the asset’s economic benefits are
consumed.
(a) Technical Knowhow :
The expenditure incurred is amortised over the estimated period of benefit, not exceeding six years commencing with the year of
purchase of the technology.

(b) Development Expenditure :

The expenditure incurred on technical services and other project/product related expenses are amortised over the estimated period
of benefit, not exceeding five years.

(c) Software Expenditure :

The expenditure incurred is amortised over three financial years equally commencing from the year in which the expenditure is
incurred.

(d) Websites :
The expenditure incurred is amortised over the estimated period of benefit, not exceeding five years.

(e) Vacation Ownership :

The expenditure incurred on vacation ownership is amortised over a period of ten years.

(f) Trademarks :
The expenditure incurred is amortised over the estimated period of benefit, not exceeding ten years.

(g) Non-Compete Fees :

Non-Compete payments are amortised equally over the estimated period of benefit, not exceeding ten years.

(D) Impairment of Assets :

The carrying value of assets/cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds
their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived
at by discounting the future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its
useful life to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised
for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the
Statement of Profit and Loss, except in case of revalued assets.

Mahindra & Mahindra Limited 217

 (E) Investments :
Long term investments, other than in Associates, are carried at cost. However, provision for diminution in value is made to recognise a
decline other than temporary, in the value of investments. Current investments are valued at the lower of cost and fair value, determined
by category of investment. Investments in Associates are accounted using the equity method.
(F) Inventories :
Inventories are stated at cost or net realisable value, whichever is lower. Cost is arrived at on a weighted average method and
includes, where appropriate, manufacturing overheads and excise duty. Cost of the inventory, includes interest, where appropriate, for
long term projects.
(G) Foreign Exchange Transactions :
Transactions in foreign currencies (other than firm commitments and highly probable forecast transactions) are recorded at the exchange
rates prevailing on the date of transaction. Monetary items are translated at the year-end rates. The exchange difference between the
rate prevailing on the date of transaction and on the date of settlement as also on translation of monetary items at the end of the year
(other than those relating to long term foreign currency monetary items) is recognised as income or expense, as the case may be.
Exchange differences relating to long term foreign currency monetary items, to the extent they are used for financing the acquisition
of depreciable assets are added to or subtracted from the cost of such depreciable assets and the balance accumulated in ‘Foreign
Currency Monetary Item Translation Difference Account’, under Reserves and Surplus, and amortised over the balance term of the long
term monetary item.
Any premium or discount arising at the inception of a forward exchange contract is recognised as income or expense over the life of the
contract, except in the case where the contract is designated as a cash flow hedge.
(H) Derivative Instruments and Hedge Accounting :
The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations
relating to certain firm commitments and highly probable forecast transactions. The Company does not hold derivative financial instruments
for speculative purposes. The Company has applied to such contracts the hedge accounting principles set out in Accounting Standard 30
‘Financial Instruments : Recognition and Measurement’ (AS 30) by marking them to market at each reporting date.
Changes in the fair value of the contracts that are designated and effective as hedges of future cash flows are recognised directly
in Hedging Reserve Account and the ineffective portion is recognised immediately in the Statement of Profit and Loss.
(I) Revenue Recognition :
(a) Sale of products and services including export benefits thereon are recognised when the products are shipped or services rendered.
Excise duty recovered on sales is included in “Revenue from Operations”.
(b) Long Term Contracts and Property Development Activity :
Income from real estate sales is recognised on the transfer of all significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. However
if, at the time of transfer substantial acts are yet to be performed under the contract, revenue is recognised on proportionate basis
as the acts are performed, i.e. on the percentage of completion basis.
In accordance with the Guidance Note on Accounting for Real Estate Transactions (Revised 2012) issued by the Institute of Chartered
Accountants of India, in case of projects commencing on or after 1st April, 2012 or in case of projects which have already commenced
but where revenue is being recognised for the first time on or after 1st April, 2012, revenues will be recognised from these real
estate projects only when;
i. the actual construction and development cost incurred is at least 25% of the total construction and development cost (without
considering land cost) and
ii. when at least 10% of the sales consideration is realised and
iii. where 25% of the total saleable area of the project is secured by contracts of agreement with buyers.
Income from long term contracting assignments is also recognised on the percentage of completion basis. As the long term contracts
necessarily extend beyond one year, revision in costs and revenues estimated during the course of the contract are reflected in the
accounting period in which the facts requiring the revision become known. Any expected loss on a project is recognised in the year
in which costs incurred together with the balance costs to completion are likely to be in excess of the estimated revenues from
project. Unbilled costs are carried as construction work-in-progress.
Determination of revenues under the percentage of completion method necessarily involves making estimates by the Company,
some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the
expected revenues from the project/activity and the foreseeable losses to completion.
Project Management Fees receivable on fixed period contracts is accounted over the tenure of the contract/agreement. Where
the management fee is linked to the input costs, revenue is recognised as a proportion of the work completed based on progress
claims submitted. Where the fee is linked to the revenue generation from the project, revenue is recognised on the percentage of
completion basis.

218 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

(c) Lease and Rental Income :

Land lease premium is recognised as income upon creation of leasehold rights in favour of the Lessee or upon an agreement to
create leasehold rights with handing over of possession.
Property lease rental, income from operation and maintenance charges and water charges are recognised on an accrual basis as per
terms of the agreement with the lessees.

(d) Income from Loan :

Interest Income from loan transactions is accounted for by applying the interest rate implicit in such contracts. Service charges,
documentation charges and other fees on loan transactions are recognised at the commencement of the contract. Subvention
received from dealers/manufacturers on retail cases is booked over the period of the contract.

(e) Income from Assignment :

Receivables under the assignment transactions are de-recognized in the Balance Sheet when they are sold subject to the
portion of loan assets which is required under the Minimum Retention Criteria and reflected as Loans and Advances. The amount
of profit in cash on such transactions is held under an accounting head styled as “Cash profit on loan transfer transactions
pending recognition” maintained on an individual transaction basis. The amortisation of cash profit arising out of loan assignment
transaction is done at the end of every financial year based on the prescribed formula.

(f) Vacation Ownership Business :

The activity of selling vacation ownership and providing holiday facilities to members for a specified period each year, over a
number of years, for which membership fee is collected either in full up front, or on a deferred payment basis. Admission fee,
which is non-refundable, is recognised as income on admission of a member. Entitlement fee (disclosed under Deferred Income
– Entitlement fee), which entitles the vacation ownership member for the vacation ownership facilities is recognised as income
equally over the period of membership commencing from the year of admission of each member. Requests for cancellation of
membership is accounted for when it is accepted. In respect of instalments considered doubtful of recovery by the management,
the same is treated as a cancellation and related revenues are de-recognised.
Revenue from timeshare weeks is recognised when the Company has transferred the property in goods to the buyer for a
consideration, which coincides with transfer of significant risks and rewards of ownership.
Income from Villas apartments is recognised by using the percentage of completion method. Under the percentage of completion
method, contract revenue is recognised as revenue in the Statement of Profit and Loss in the accounting periods in which the work
is performed. Contract costs are usually recognised as an expense in the Statement of Profit and Loss in the accounting periods in
which the work to which they relate is performed. However, any expected excess of total contract costs over total contract revenue
for the contract is recognised as an expense immediately.

(g) Dividends from investments are recognised in the Statement of Profit and Loss when the right to receive payment is established.

(J) Government Grants :

The Company, directly or indirectly through a consortium of Mahindra Group Companies, is entitled to various incentives from government
authorities in respect of manufacturing units located in developing regions. The Company accounts for its entitlement as income on
accrual basis.

(K) Employee Benefits :

In respect of Defined Contribution Plan/Defined Benefit Plan/Long Term Compensated Absences.
Group’s contributions paid/payable during the year to Superannuation Fund, ESIC and Labour Welfare Fund are recognised in the
Statement of Profit and Loss.
Contributions to Provident Fund are made to Trusts administered by Group Companies or Regional Provident Fund Commissioners
and are charged to Statement of Profit and Loss as incurred. The group companies are liable for the contribution and any shortfall in
interest between the amount of interest realised by the investments and the interest payable to members at the rate declared by the
Government of India in respect of the Trusts administered by the group companies.
The Group’s liability towards gratuity, long term compensated absences, post retirement medical benefit and post retirement
housing allowance schemes are determined by independent actuaries, using the projected unit credit method. Past services are
recognised on a straight line basis over the average period until the benefits become vested. Actuarial gains and losses are recognised
immediately in the Statement of Profit and Loss as income or expense. Obligation is measured at the present value of estimated future
cash flows using a discounted rate that is determined by reference to the market yields at the Balance Sheet date on Government
Bonds where the currency and terms of the Government Bonds are consistent with the currency and estimated terms of the defined
benefit obligation.

Mahindra & Mahindra Limited 219

 In respect of Employee Stock Option Scheme :
The compensation cost of stock options granted to employees is measured by the Intrinsic Value Method. The intrinsic value, which is the
excess of the market price of the underlying equity shares as of the date of the grant over the exercise price of the option, is recognised
and amortised on straight line basis over the vesting period.

(L) Borrowing Costs :

All borrowing costs are charged to the Statement of Profit and Loss except :
(i) Borrowing costs that are attributable to the acquisition or construction of qualifying tangible and intangible assets that necessarily
take a substantial period of time to get ready for their intended use, which are capitalised as part of the cost of such assets.
(ii) Expenses incurred on raising long term borrowings are amortised over the period of borrowings. On early buyback, conversion or
repayment of borrowings, any unamortised expenditure is fully written off in that year.

(M) Product Warranty :

In respect of warranties given by the Company on sale of certain products, the estimated costs of these warranties are accrued at the
time of sale. The estimates for accounting of warranties are reviewed and revisions are made as required.

(N) Leases :
The Company’s significant leasing arrangements are in respect of operating leases for premises (residential, office, stores, godowns,
computer hardware etc.). The leasing arrangements, which are not non-cancellable, range between eleven months and five years
generally, and are usually renewable by mutual consent on agreed terms. The aggregate lease rentals payable are charged as rent.

(O) Taxes on Income :

Current Tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax is recognised,
subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income
that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets arising on account
of unabsorbed depreciation or carry forward of tax losses are recognised only to the extent that there is virtual certainty supported
by convincing evidence that sufficient future taxable income will be available against which such Deferred Tax Assets can be realised.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax against
which the MAT paid will be adjusted.

(P) Segment Reporting :

The accounting policies adopted for segment reporting are in line with the accounting policies of the Group. Segments are identified
having regard to the dominant source and nature of risks and returns and internal organisation and management structure.
Revenues and expenses have been identified to the segments based on their relationship to the business activity of the segment.
Income/Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as
unallocated corporate income/expenses. Inter-segment transfers are at prices which are generally market led.

3. Certain changes in Group Structure : During the year ended 31st March, 2016, the following changes in Group structure have taken place and
the same have been appropriately dealt with in the Consolidated Financial Statements.
(i) Holiday Club Resorts Oy, Finland (HCR) & HCR Management Oy (HCRM) : From September 2, 2015, Holiday Club Resorts Oy, Finland
(HCR) and HCR Management Oy (HCRM) and its subsidiaries and associates became the subsidiaries and associates of the MHRIL and in
turn of the Company.
(ii) Mitsubishi Mahindra Agricultural Machinery Co., Ltd : During the year the Company has acquired JPY 750 million Common Stock (which
represents 33.33% of the Common stock), and also acquired entire JPY 2,250 million “Class A” shares (shares with no voting rights);
“Class A” shares have rights over dividend and liquidation on an equal basis with Common Stock, resulting in Joint venture of the
Company.
(iii) Swaraj Automotives Limited : During the year, the Company has sold its entire stake in Swaraj Automotive Limited on February 2, 2016,
consequently ceased to be subsidiary of the company.
(iv) Mahindra Water Utilities Limited : During the year, Mahindra Infrastructure Developers Limited (MIDL) a subsidiary of the Company has
acquired further stake in Mahindra Water Utilities Limited resulting in increase in voting power from 50.00% to 99.00%.
The current year’s figures are to that extent not strictly comparable to those of the previous year.

220 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

4. Share Capital :
Rupees crores
2016 2015
Authorised :
1,20,00,00,000 Ordinary (Equity) Shares of Rs. 5 each................................................................... 600.00 600.00
25,00,000 Unclassified Shares of Rs. 100 each ........................................................................ 25.00 25.00

625.00 625.00

Issued and Subscribed :

62,10,92,384 (2015 : 62,10,92,384) Ordinary (Equity) Shares of Rs. 5 each fully paid up ................ 310.55 310.55
Less :
2,84,58,577 (2015 : 2,97,00,106) Ordinary (Equity) Shares of Rs. 5 each fully paid up issued to
ESOP Trust but not allotted to employees ................................................................... 14.23 14.85

Adjusted : Issued and Subscribed Share Capital................................................................................. 296.32 295.70

(A) Reconciliation of number of Ordinary (Equity) Shares and amount outstanding :

2016 2015
No. of shares Rupees crores No. of shares Rupees crores
Issued and Subscribed :
Balance as at the beginning of the year .......................... 62,10,92,384 310.55 61,58,92,384 307.95

Add :
Shares issued to ESOP Trust ............................................... — — 52,00,000 2.60

Balance as at the end of the year ..................................... 62,10,92,384 310.55 62,10,92,384 310.55

Less :
Shares issued to ESOP Trust but not allotted to
Employees [Note 5(O)] ....................................................... 2,84,58,577 14.23 2,97,00,106 14.85

Adjusted : Issued and Subscribed Share Capital.............. 59,26,33,807 296.32 59,13,92,278 295.70

(B) The Ordinary (Equity) Shares of the Company rank pari-passu in all respects including voting rights and entitlement to dividend.

(C) Details of Ordinary (Equity) Shares held by shareholders holding more than 5% of the aggregate shares in the Company :

2016 2015
Name of the Shareholder
No. of shares % shareholding No. of shares % shareholding

(i) Life Insurance Corporation of India .......................... 7,72,50,271 12.44 7,82,03,359 12.59
(ii) Prudential Management and Services Pvt. Ltd. ...... 7,07,60,970 11.39 7,07,60,970 11.39
(iii) M&M Benefit Trust ..................................................... 5,18,35,214 8.35 5,18,35,214 8.35
(iv) The Bank of New York Mellon (for GDR holders) ... 3,45,30,583 5.56 3,34,13,833 5.38

(D) Issued and Subscribed Share Capital includes an aggregate of 40,647 (2015 : 40,647) Ordinary (Equity) Shares of Rs. 5 each allotted as
fully paid-up pursuant to schemes of arrangement without payment having been received in cash, for a period of five years immediately
preceding the end of the financial year.

Mahindra & Mahindra Limited 221

5. Reserves and Surplus : (contd.)
Rupees crores
2016 2015
(A) Capital Reserve :
Balance as at the beginning of the year ..................................................................................... 23.52 23.54
Less :
Consequent to change in Group's Interest ................................................................................. — 0.02
Balance as at the end of the year................................................................................................ 23.52 23.52

(B) Capital Reserve on Consolidation :

Balance as at the beginning of the year ..................................................................................... 1,204.15 1,204.15
Add :
Consequent to change in Group’s Interest ................................................................................. 23.05 —
On acquisition during the year .................................................................................................... 334.50 —
Balance as at the end of the year................................................................................................ 1,561.70 1,204.15

(C) Securities Premium Account :

Balance as at the beginning of the year ..................................................................................... 2,579.70 2,533.93
Add :
On account of exercise of employee stock options ................................................................... 52.09 45.77
Consequent to change in Group’s Interest ................................................................................. — 0.07
2,631.79 2,579.77
Less :
Writing-off of debenture issue expenses [Net of Tax of Rs. 0.02 crores (2015 : Rs. 0.03 crores)] .... 0.03 0.07
2,631.76 2,579.70
Less :
Premium on shares issued to ESOP Trust but not allotted to employees [Note 5(O)] .......... 256.78 258.30
Balance as at the end of the year................................................................................................ 2,374.98 2,321.40

(D) Revaluation Reserve :

Balance as at the beginning of the year ..................................................................................... 13.67 13.67
Balance as at the end of the year................................................................................................ 13.67 13.67

(E) General Reserve :

Balance as at the beginning of the year ..................................................................................... 2,938.94 2,875.28
Add :
Transfer from Surplus in Statement of Profit and Loss ............................................................. 44.54 72.27
On account of employee stock options*..................................................................................... — 24.00
On account of employee stock options lapsed .......................................................................... 0.23 0.08
2,983.71 2,971.63
Less :
Consequent to change in Group’s Interest ................................................................................. 0.22 32.69
Consequent to sale/disposal of subsidiary .................................................................................. 1.42 —
2,982.07 2,938.94
Add :
Bonus shares issued to ESOP Trust but not allotted to employees [Note 5(O)] .................... 0.50 0.81
Balance as at the end of the year................................................................................................ 2,982.57 2,939.75

*relating to shares other than those allotted by the Company to the ESOP Trust.

222 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

5. Reserves and Surplus : (contd.)

Rupees crores
2016 2015

(F) Debenture Redemption Reserve :

Balance as at the beginning of the year ..................................................................................... 277.45 263.61
Add :
Transfer from Surplus in Statement of Profit and Loss ............................................................. 42.84 81.35
320.29 344.96
Less :
Transfer to Surplus in Statement of Profit and Loss .................................................................. 167.50 67.51
Balance as at the end of the year................................................................................................ 152.79 277.45

(G) Investment Fluctuation Reserve :

Balance as at the beginning of the year ..................................................................................... 56.29 122.44
Add :
Transfer from Surplus in Statement of Profit and Loss ............................................................. 61.48 —
Provision no longer required written back................................................................................. — 267.47
117.77 389.91
Less :
Utilisation during the year [Note 36] .......................................................................................... 82.37 184.52
Transfer to Surplus in Statement of Profit and Loss .................................................................. 35.40 149.10
Balance as at the end of the year................................................................................................ — 56.29

(H) Capital Redemption Reserve :

Balance as at the beginning of the year ................................................................................... 73.69 90.32
Add :
Transfer from Surplus in Statement of Profit and Loss ............................................................. 29.41 —
103.10 90.32
Less :
Consequent to change in Group’s Interest ................................................................................. 0.04 16.63
Balance as at the end of the year................................................................................................ 103.06 73.69

(I) Statutory Reserve (under regulatory compliances) :

Balance as at the beginning of the year ..................................................................................... 584.64 491.33
Add :
Transfer from Surplus in Statement of Profit and Loss ............................................................. 80.25 93.69
664.89 585.02
Less :
Consequent to change in Group’s Interest ................................................................................. 0.40 0.38
Balance as at the end of the year................................................................................................ 664.49 584.64

(J) Hedging Reserve Account :

Balance as at the beginning of the year ................................................................................... (15.13) (71.86)
Net movement, on hedging instruments, designated and effective as hedges
and transfers to Statement of Profit and Loss on occurrence of forecasted hedge
transactions (Net of Tax)............................................................................................................... 70.55 56.73
Balance as at the end of the year................................................................................................ 55.42 (15.13)

(K) Foreign Currency Translation Reserve :

Balance as at the beginning of the year ..................................................................................... 997.27 936.64
Add :
On currency translation during the year (Net)........................................................................... 23.90 60.63
Balance as at the end of the year................................................................................................ 1,021.17 997.27

Mahindra & Mahindra Limited 223

5. Reserves and Surplus : (contd.)
Rupees crores
2016 2015
(L) Employee Stock Options Outstanding :
Balance as at the beginning of the year ..................................................................................... 142.79 223.11
Add :
On account of options granted during the year ........................................................................ 357.05 —
499.84 223.11
Less :
Transfer to Securities Premium Account on exercise of options during the year .................. 52.09 45.77
Transfer to General Reserve on account of employee stock options* .................................... — 24.00
For options lapsed/forfeited during the year ............................................................................ 3.76 10.55
Balance as at the end of the year................................................................................................ 443.99 142.79
Less :
Deferred Employee Compensation Expense .............................................................................. 296.07 36.20
Balance as at the end of the year................................................................................................ 147.92 106.59
* relating to shares other than those allotted by the Company to the ESOP Trust.

(M) Foreign Currency Monetary Items Translation Difference Account :

Balance as at the beginning of the year ..................................................................................... (79.58) (121.01)
Add :
Arising on revaluation of long term monetary assets and liabilities (Net) ............................ (82.41) (41.86)
(161.99) (162.87)
Less :
Amortisation during the year....................................................................................................... 157.04 83.29
Balance as at the end of the year................................................................................................ (4.95) (79.58)

(N) Surplus in Statement of Profit and Loss :

Balance as at the beginning of the year ..................................................................................... 17,056.97 14,769.49
Add :
Profit for the year .......................................................................................................................... 3,211.26 3,137.47
Consequent to change in Group’s Interest ................................................................................. — 229.35
Reversal of income tax on dividend paid for 2013-14 ............................................................... — 2.80
Transfer from Investment Fluctuation Reserve........................................................................... 35.40 149.10
Transfer from Debenture Redemption Reserve.......................................................................... 167.50 67.51
20,471.13 18,355.72
Less :
Transfer to Debenture Redemption Reserve .............................................................................. 42.84 81.35
Transfer to General Reserve ......................................................................................................... 44.54 72.27
Transfer to Statutory Reserve ....................................................................................................... 80.25 93.69
Transfer to Capital Redemption Reserve .................................................................................... 29.41 —
Transfer to Investment Fluctuation Reserve ............................................................................... 61.48 —
Consequent to change in Group’s Interest ................................................................................. 51.18 72.83
Group’s share of subsidiaries and associates’ dividend tax ...................................................... 92.71 72.56
Proposed Dividend [Rs. 12.00 per share (2015 : Rs. 12.00 per share)] .................................... 745.31 745.31
Income-tax on Proposed Dividend............................................................................................... 96.37 101.58
Income-tax on Dividend Paid for 2014-15 ................................................................................... 0.06 —
Depreciation on transitional provision specified in Schedule II to the Companies Act, 2013
[Net of Tax of Rs. Nil crores (2015 : Rs. 27.09 crores)]** .......................................................... — 52.10
Deferred tax on Special Reserve .................................................................................................. — 7.06
1,244.15 1,298.75
Balance as at the end of the year................................................................................................ 19,226.98 17,056.97
Total Reserves and Surplus * ....................................................................................................... 28,323.32 25,560.68

* [including Group Share of Joint Ventures Rs. 68.09 crores (2015 : Rs. 46.63 crores)]
** excluding share attributable to minority interest of Rs. Nil crores (2015 : Rs. 6.31 crores).

224 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

(O) The Guidance Note on Accounting for Employee Share-based Payments issued by The Institute of Chartered Accountants of India requires
that shares allotted to a Trust but not transferred to employees be reduced from Share Capital and Reserves and Surplus. Accordingly,
the Company has reduced the Share Capital by Rs. 13.73 crores (2015 : Rs. 14.04 crores) and Securities Premium Account by Rs. 256.78
crores (2015 : Rs. 258.30 crores) for the 2,74,61,619 shares of Rs. 5 each (2015 : 2,80,82,384 shares of Rs. 5 each) held by the Trust pending
transfer to the eligible employees.
The Share Capital of the Company has also been reduced and the General Reserve increased by Rs. 0.50 crores (2015 : Rs. 0.81 crores)
for the 9,96,958 bonus shares of Rs. 5 each (2015 : 16,17,722 bonus shares of Rs. 5 each) issued by the Company in September, 2005 to
the Trust but not yet transferred by the Trust to the employees.
The above monies which are treated as advance received from the Trust, is included under Other Current Liabilities and Other Long Term
Liabilities.
6. Long Term Borrowings :
Rupees crores
2016 2015
(A) Secured :
(i) Debentures/Bonds ................................................................................................................. 8,418.90 4,595.40
(ii) Term Loan from Banks .......................................................................................................... 8,799.96 8,419.98
(iii) Term Loan from Other Parties ............................................................................................. 559.66 461.72
(iv) Other Loans............................................................................................................................ 74.73 121.25
17,853.25 13,598.35
Group Share of Joint Ventures ..................................................................................................... 1,289.51 820.13
19,142.76 14,418.48

(B) Unsecured :
(i) Debentures/Bonds ................................................................................................................. 1,744.10 1,509.10
(ii) Term Loan from Banks .......................................................................................................... 63.91 1,873.86
(iii) Fixed Deposits ........................................................................................................................ 2,878.51 3,238.63
(iv) Other Loans............................................................................................................................ 1,106.93 1,126.87
5,793.45 7,748.46
Group Share of Joint Ventures ..................................................................................................... 160.09 160.09
5,953.54 7,908.55
25,096.30 22,327.03

Secured borrowings are secured by a pari-passu charge on immovable properties of certain entities both present and future, subject to certain
exclusions and are also secured by pari-passu charge on the movable properties of certain entities including movable machinery, machinery
spares, tools and accessories, both present and future, subject to certain exclusions.
The borrowings carry varying rates of interest ranging from 0% to 12.30% and have maturities starting from 2016 and ending with 2063.
Rupees crores
2016 2015
Borrowings repayable schedule :
(a) Secured * :
(i) In the first year [Note 12]..................................................................................................... 8,578.61 7,469.89
(ii) In the second year ................................................................................................................. 6,274.67 6,312.52
(iii) In the third to fifth year ....................................................................................................... 10,854.44 7,328.78
(iv) Above five years .................................................................................................................... 2,013.65 777.18
27,721.37 21,888.37

(b) Unsecured * :
(i) In the first year [Note 12]..................................................................................................... 2,604.60 1,301.22
(ii) In the second year ................................................................................................................. 1,957.64 2,694.49
(iii) In the third to fifth year ....................................................................................................... 1,950.86 3,012.30
(iv) Above five years .................................................................................................................... 2,045.04 2,201.76
8,558.14 9,209.77

* Above amount includes current maturities of long term debt in note 12 and Group Share of Joint Ventures.

Mahindra & Mahindra Limited 225

7A. Deferred Tax Liabilities (Net) :
The components of Deferred Tax Liabilities and Assets are as under :
Rupees crores
2016 2015
Deferred Tax Liabilities :
(i) On fiscal allowances on fixed assets........................................................................................... 1,884.59 1,583.95
(ii) Others............................................................................................................................................. 43.28 91.59

1,927.87 1,675.54
Group Share of Joint Ventures ............................................................................................................ 3.69 3.55

Total Deferred Tax Liabilities ............................................................................................................... 1,931.56 1,679.09

Deferred Tax Assets :

(i) On provision for employee benefits ........................................................................................... 197.59 209.52
(ii) On provision for doubtful debts/advances ................................................................................ 45.30 33.22
(iii) Others............................................................................................................................................. 135.91 148.87

378.80 391.61
Group Share of Joint Ventures ............................................................................................................ 0.73 0.65

Total Deferred Tax Assets .................................................................................................................... 379.53 392.26

Net Deferred Tax Liabilities ................................................................................................................. 1,552.03 1,286.83

7B. Deferred Tax Assets (Net) :

The components of Deferred Tax Liabilities and Assets are as under :
Rupees crores
2016 2015

Deferred Tax Liabilities :

(i) On fiscal allowances on fixed assets............................................................................................ 13.01 1.80
(ii) Others.............................................................................................................................................. 21.18 11.12
Total Deferred Tax Liabilities ................................................................................................................ 34.19 12.92

Deferred Tax Assets :

(i) On provision for employee benefits ............................................................................................ 12.32 11.07
(ii) On provision for doubtful debts/advances ................................................................................. 602.91 417.57
(iii) Others.............................................................................................................................................. 111.32 46.48

726.55 475.12
Group Share of Joint Ventures ............................................................................................................. 16.78 5.57

Total Deferred Tax Assets ..................................................................................................................... 743.33 480.69

Net Deferred Tax Assets ....................................................................................................................... 709.14 467.77

226 Annual Report 2015-16

 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

8. Other Long Term Liabilities :

Rupees crores
2016 2015
(i) Trade Payables .............................................................................................................................. 83.03 48.83
(ii) Deferred Income – Entitlement Fee .......................................................................................... 1,689.32 1,508.66
(iii) Interest accrued but not due on borrowings ............................................................................ 314.69 197.92
(iv) Others............................................................................................................................................. 798.32 751.05
2,885.36 2,506.46
Group Share of Joint Ventures ............................................................................................................ 95.08 2.30
2,980.44 2,508.76

Others include dealer deposits, advance from customers, payable for investments, gratuity payable and monies adjusted from share capital
and reserves & surplus on account of shares held by ESOP Trust pending transfer to the eligible employees.

9. Long Term Provisions :

Rupees crores
2016 2015
(i) Provision for Employee Benefits ................................................................................................. 2,597.19 2,363.74
(ii) Provision for Warranty [Note 31] ................................................................................................ 748.62 663.99
(iii) Provision for Standard assets [Note 31] ..................................................................................... 84.13 75.05
(iv) Provision others............................................................................................................................. 67.59 135.43
3,497.53 3,238.21
Group Share of Joint Ventures : Includes Provision for Warranty Rs. 0.14 crores (2015 : Rs. 0.13 crores) ...... 92.80 1.74
3,590.33 3,239.95

10. Short Term Borrowings :

Rupees crores
2016 2015
(A) Secured :
(i) Loans repayable on demand from banks and cash credit accounts from banks .......... 1,745.60 1,250.78
(ii) Term Loan from Bank .......................................................................................................... 781.58 977.35
(ii) Debentures and Bonds ........................................................................................................ 50.00 —
(iv) Other loans and advances ................................................................................................... 704.56 583.26
3,281.74 2,811.39
Group Share of Joint Ventures .................................................................................................... 553.69 362.90
3,835.43 3,174.29
(B) Unsecured :
(i) Loans repayable on demand from banks .......................................................................... 683.45 268.49
(ii) Term Loan from Bank .......................................................................................................... 466.64 158.25
(iii) Fixed Deposits ....................................................................................................................... 161.55 69.43
(iv) Commercial Papers ............................................................................................................... 2,979.55 3,475.00
(v) Other loans and advances ................................................................................................... 2.24 31.90
4,293.43 4,003.07
Group Share of Joint Ventures .................................................................................................... 121.83 0.08
4,415.26 4,003.15
8,250.69 7,177.44

Loans and Advances from Banks are secured by a first charge on certain current assets namely inventories, certain book debts, outstanding
monies, receivables, claims, etc. both present and future.

Mahindra & Mahindra Limited 227

11. Trade Payables :
Rupees crores
2016 2015
(i) Acceptances ................................................................................................................................... 1,916.00 2,629.33
(ii) Other Trade Payables ................................................................................................................... 10,986.44 8,768.64
12,902.44 11,397.97
Group Share of Joint Ventures ............................................................................................................ 725.18 23.30
13,627.62 11,421.27

12. Other Current Liabilities :

Rupees crores
2016 2015
(i) Current maturities of long term debt ........................................................................................ 10,622.74 8,406.99
(ii) Interest accrued but not due on borrowings ............................................................................ 655.01 481.04
(iii) Interest accrued and due on borrowings................................................................................... 7.18 6.95
(iv) Deferred Income – Entitlement Fee .......................................................................................... 191.41 166.91
(v) Dividend Payable .......................................................................................................................... 15.48 14.59
(vi) Unclaimed matured deposits and interest accrued thereon ................................................... 0.97 0.84
(vii) Other payables .............................................................................................................................. 3,681.30 3,223.96
15,174.09 12,301.28
Group Share of Joint Ventures: Includes Current maturity of long term debt Rs. 560.47 crores
(2015 : Rs. 364.12 crores) ...................................................................................................................... 694.14 470.59
15,868.23 12,771.87

Other payables mainly include advance from customers, capital creditors, government dues and taxes payable, gratuity payable and salary
deductions payable.

13. Short Term Provisions :

Rupees crores
2016 2015
(i) Provision for Employee Benefits ................................................................................................. 309.85 351.27
(ii) Proposed Dividend........................................................................................................................ 745.31 745.31
(iii) Provision for Tax on Proposed Dividend .................................................................................... 96.37 101.58
(iv) Provision for Warranty [Note 31] ................................................................................................ 582.53 563.36
(v) Provision for Estimated Loss/Expenses on Assignment ............................................................ — 67.57
(vi) Provision for Standard assets [Note 31] ..................................................................................... 68.37 59.69
(vii) Provision for Taxation................................................................................................................... 225.92 269.83
(viii) Others............................................................................................................................................. 256.84 201.88

2,285.19 2,360.49
Group Share of Joint Ventures : Includes Provision for Warranty Rs. 16.43 crores (2015 :
Rs. 0.26 crores) 25.39 1.73

2,310.58 2,362.22

228 Annual Report 2015-16

 14. Fixed Assets :
Rupees crores
Description of Assets Cost/ Additions Other Deductions Cost/ Depreciation Depreciation Deductions and Depreciation Net Balance Impairment Net Balance
Overview
Company

Professional during the Adjustments and Professional upto 31st for 2015-2016 Adjustments of upto 31st before as at 31st after
valuation as year during the Adjustments valuation March, 2015 Depreciation March, 2016 Impairment March, 2016 Impairment
at 31st March, year during the as at 31st as at 31st as at 31st
2015 year March, 2016 March, 2016 March, 2016

A : Tangible Assets
Land – Freehold............................. 3,120.10 49.36 80.67 4.61 3,245.52 — — — — 3,245.52 — 3,245.52
Report
Board’s

2,907.19 213.84 24.57 25.50 3,120.10 — — — — 3,120.10 — 3,120.10

Land – Leasehold .......................... 573.26 61.77 10.97 12.83 633.17 50.61 29.20 (0.61) 80.42 552.75 — 552.75
513.70 71.07 3.13 14.64 573.26 37.87 13.02 0.28 50.61 522.65 — 522.65

Buildings – Freehold ..................... 7,595.50 606.42 121.65 14.41 8,309.16 2,180.12 226.54 (53.69) 2,460.35 5,848.81 1,077.15 4,771.66
7,121.44 740.05 43.55 309.54 7,595.50 1,885.78 333.97 39.63 2,180.12 5,415.38 1,048.35 4,367.03

Buildings – Leasehold ................... 70.63 69.74 0.30 11.16 129.51 39.51 51.03 7.55 82.99 46.52 2.13 44.39
70.83 6.90 0.04 7.14 70.63 31.98 11.11 3.58 39.51 31.12 1.00 30.12
and Analysis

Plant and Equipment – Freehold 25,264.99 2,964.57 502.05 396.00 28,335.61 15,528.19 1,699.70 (25.92) 17,253.81 11,081.80 1,536.57 9,545.23
22,887.48 3,048.89 141.46 812.84 25,264.99 14,055.95 2,343.47 871.23 15,528.19 9,736.80 1,483.79 8,253.01

Plant and Equipment – Leasehold 20.39 0.28 0.63 5.20 16.10 4.13 2.17 2.13 4.17 11.93 — 11.93
Management Discussion

138.96 14.00 (1.70) 130.87 20.39 87.25 2.14 85.26 4.13 16.26 — 16.26

Office Equipment .......................... 268.19 77.62 1.23 19.62 327.42 165.62 47.00 (1.06) 213.68 113.74 0.61 113.13
229.48 51.13 0.25 12.67 268.19 97.03 59.13 (9.46) 165.62 102.57 0.30 102.27

Furniture and Fixtures .................. 909.22 115.25 13.04 63.58 973.93 508.54 99.60 44.99 563.15 410.78 26.07 384.71
Corporate
Governance

1,109.38 78.14 3.77 282.07 909.22 650.54 97.90 239.90 508.54 400.68 28.42 372.26

Aircraft ........................................... 103.46 — — — 103.46 17.01 4.81 — 21.82 81.64 — 81.64

103.46 — — — 103.46 12.20 4.81 — 17.01 86.45 — 86.45

Vehicles........................................... 511.17 146.93 2.20 71.99 588.31 255.65 89.02 54.37 290.30 298.01 6.14 291.87
469.34 88.53 0.22 46.92 511.17 204.07 81.24 29.66 255.65 255.52 7.65 247.87
Report

Batteries ......................................... 6.68 10.62 — — 17.30 0.56 1.69 — 2.25 15.05 — 15.05
0.49 6.19 — — 6.68 0.22 0.34 — 0.56 6.12 — 6.12

Sub Total ........................................ 38,443.59 4,102.56 732.74 599.40 42,679.49 18,749.94 2,250.76 27.76 20,972.94 21,706.55 2,648.67 19,057.88
35,551.75 4,318.74 215.29 1,642.19 38,443.59 17,062.89 2,947.13 1,260.08 18,749.94 19,693.65 2,569.51 17,124.14
Business Responsibility

Group Share of Joint Ventures ... 150.11 1,286.33 0.01 55.11 1,381.34 27.16 875.67 42.03 860.80 520.54 — 520.54
136.06 14.31 — 0.26 150.11 17.96 9.11 (0.09) 27.16 122.95 — 122.95
Sub Total A .................................... 38,593.70 5,388.89 732.75 654.51 44,060.83 18,777.10 3,126.43 69.79 21,833.74 22,227.09 2,648.67 19,578.42
35,687.81 4,333.05 215.29 1,642.45 38,593.70 17,080.85 2,956.24 1,259.99 18,777.10 19,816.60 2,569.51 17,247.09
Accounts
Standalone

Mahindra & Mahindra Limited

Accounts
Consolidated

229
 14. Fixed Assets : (contd.)

230
Rupees crores
Description of Assets Cost/ Additions Other Deductions Cost/ Depreciation/ Depreciation/ Deductions and Depreciation/ Net Balance Impairment as Net Balance
Professional during the Adjustments and Professional Amortisation Amortisation Adjustments of Amortisation before at 31st after
valuation as year during the Adjustments valuation as upto 31st for 2015-2016 Depreciation/ upto 31st Impairment March, 2016 Impairment
at 31st year during the at 31st March, 2015 Amortisation March, 2016 as at 31st as at 31st
March, 2015 year March, 2016 March, 2016 March, 2016

B : Intangible Assets

Technical Knowhow ....................... 101.51 — — — 101.51 94.92 6.13 — 101.05 0.46 — 0.46
104.80 — — 3.29 101.51 79.00 18.99 3.07 94.92 6.59 — 6.59

Annual Report 2015-16

Development Expenditure ............ 1,626.99 1,478.07 24.71 246.61 2,883.16 737.48 358.61 239.40 856.69 2,026.47 4.20 2,022.27
1,351.87 587.67 (8.05) 304.50 1,626.99 585.02 215.93 63.47 737.48 889.51 — 889.51

Computer Software ....................... 430.28 99.84 4.72 22.04 512.80 314.39 102.93 17.90 399.42 113.38 — 113.38
417.17 64.10 0.13 51.12 430.28 282.98 86.43 55.02 314.39 115.89 — 115.89

Websites .......................................... 4.34 0.42 — — 4.76 4.14 0.07 — 4.21 0.55 — 0.55
4.11 0.23 — — 4.34 4.06 0.06 (0.02) 4.14 0.20 — 0.20

Non-Compete Fees......................... 0.55 0.43 — — 0.98 — 0.06 — 0.06 0.92 — 0.92

2.23 0.32 — 2.00 0.55 2.00 — 2.00 — 0.55 — 0.55

Trademarks...................................... 24.57 5.18 0.55 — 30.30 11.59 3.64 (0.32) 15.55 14.75 0.29 14.46
29.94 5.24 0.47 11.08 24.57 17.91 2.88 9.20 11.59 12.98 0.29 12.69

Other Intangibles ........................... 16.35 3.20 0.42 — 19.97 2.83 1.11 (0.08) 4.02 15.95 4.01 11.94
65.01 2.80 (0.05) 51.41 16.35 21.87 0.62 19.66 2.83 13.52 3.76 9.76

Sub Total ......................................... 2,204.59 1,587.14 30.40 268.65 3,553.48 1,165.35 472.55 256.90 1,381.00 2,172.48 8.50 2,163.98
1,975.13 660.36 (7.50) 423.40 2,204.59 992.84 324.91 152.40 1,165.35 1,039.24 4.05 1,035.19

Group Share of Joint Ventures .... 0.61 19.80 — — 20.41 0.42 12.35 (0.13) 12.90 7.51 — 7.51
0.63 0.03 — 0.05 0.61 0.26 0.17 0.01 0.42 0.19 — 0.19

Sub Total B ...................................... 2,205.20 1,606.94 30.40 268.65 3,573.89 1,165.77 484.90 256.77 1,393.90 2,179.99 8.50 2,171.49
1,975.76 660.39 (7.50) 423.45 2,205.20 993.10 325.08 152.41 1,165.77 1,039.43 4.05 1,035.38
Grand Total (A+B) .......................... 40,798.90 6,995.83 763.15 923.16 47,634.72 19,942.87 3,611.33 326.56 23,227.64 24,407.08 2,657.17 21,749.91
37,663.57 4,993.44 207.79 2,065.90 40,798.90 18,073.95 3,281.32 1,412.40 19,942.87 20,856.03 2,573.56 18,282.47
Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

14. Fixed Assets : (contd.)

The above includes following assets given on operating lease : Rupees crores
As at 31st March, 2016 2016
Particulars Gross Block Accumulated Net Block Depreciation
Depreciation charge for
the year
Buildings – Freehold.......................................................................... 111.15 14.62 96.53 2.40
111.05 12.21 98.84 2.46
Plant and Equipment – Freehold ..................................................... 11.93 4.75 7.18 1.31
11.86 3.45 8.41 1.18
Furniture and Fixtures....................................................................... 13.91 10.48 3.43 1.49
13.91 8.98 4.93 1.65
Batteries ............................................................................................. 17.30 2.25 15.05 1.69
6.68 0.56 6.12 0.34
Total .................................................................................................... 154.29 32.10 122.19 6.89
143.50 25.20 118.30 5.63
Current year figures are in Bold.
(a) Other Adjustments during the year includes translation difference of opening balance, difference in exchange and Interest capitalised.
(b) Depreciation charge for the year excludes :
(i) An amount of Rs. 0.13 crores (2015 : 0.14 crores), representing depreciation on the assets used for development work transferred
to Capital Work-in-Progress.
(ii) In accordance with the requirements of Companies Act, 2013, the parent company, its Indian subsidiaries and joint ventures has
effective 1st April, 2014 reviewed and revised the estimated useful lives of its fixed assets generally in accordance with the provisions
of Schedule II of the Companies Act, 2013. Consequently, in respect of assets, whose useful life is exhausted as at 1st April, 2014,
the related carrying amount aggregating to Rs. Nil crores (2015 : Rs 85.50 crores) was adjusted against opening balance of Surplus
in the Statement of Profit and Loss in the previous year.
(c) Impairment charge for the year to Statement of Profit & Loss is given below :
Rupees crores
Particulars Charge for the year
Building – Leasehold ............................................................................................................................................ 2.13
Plant and Equipment – Freehold ........................................................................................................................ 22.71
Office Equipment ................................................................................................................................................. 0.61
Furniture and Fixtures.......................................................................................................................................... 0.78
Vehicles .................................................................................................................................................................. 0.10
Development Expenditure................................................................................................................................... 4.32
Other Intangibles ................................................................................................................................................. 0.01
Total ....................................................................................................................................................................... 30.66

(d) Addition to tangible and intangible assets and depreciation/amortisation for the year include the following assets and accumulated
depreciation/amortisation taken over on acquisition of subsidiaries and joint ventures :
Rupees crores
As at 31st March, 2016 As at 31st March, 2015
Description of Assets Cost Accumulated Cost Accumulated
Depreciation/ Depreciation/
Amortisation Amortisation
Land – Freehold ................................................................. 160.75 — 0.26 —
Land – Leasehold ............................................................... 49.05 21.70 10.99 5.21
Buildings – Freehold.......................................................... 421.53 154.20 167.44 165.46
Buildings – Leasehold........................................................ 56.98 37.60 — —
Plant and Equipment – Freehold ..................................... 503.99 375.74 973.35 971.98
Plant and Equipment – Leasehold ................................... 140.63 67.56 — —
Furniture and Fixtures....................................................... 369.36 344.05 2.35 1.79
Vehicles ............................................................................... 5.40 4.85 0.07 0.05
Office Equipment .............................................................. 0.09 0.08 10.43 10.27
Trademarks ......................................................................... 0.47 0.06 — —
Computer Software........................................................... 50.19 23.64 0.64 0.39
Other Intangibles .............................................................. 0.21 0.08 2.28 2.19
Total .................................................................................... 1,758.65 1,029.56 1,167.81 1,157.34

Mahindra & Mahindra Limited 231

15. (A) Non Current Investments (At Cost, unless otherwise specified)
Rupees crores
2016 2015
Long Term Long Term
Investments in Equity Instruments : (Trade and fully paid-up)
Unquoted :
(i) In Associate Companies ................................................................................................................ 34.92 146.50
(ii) In Other Companies...................................................................................................................... 9.38 9.38
44.30 155.88
Quoted :
(i) In Associate Companies ................................................................................................................ 6,177.71 5,377.59
6,222.01 5,533.47
Investments in Equity Instruments : (Non-trade and fully paid-up)
Unquoted :
(i) In Other Companies...................................................................................................................... 132.08 127.69
Quoted :
(i) In Other Companies...................................................................................................................... 2.35 2.35
Investment in Equity Instruments....................................................................................................... 6,356.44 5,663.51
Investment in Preference Shares : (Trade and fully paid-up)
Unquoted :
(i) In Associate Companies ................................................................................................................ 5.53 5.53
(ii) In Other Companies...................................................................................................................... 11.82 11.82
17.35 17.35
Investment in Preference Shares : (Non-trade and fully paid-up)
Unquoted :
(i) In Other Companies...................................................................................................................... 35.36 36.00
Investment in Preference Shares......................................................................................................... 52.71 53.35
Investment in Government/Trust Securities
Unquoted :
(i) Trust Securities .............................................................................................................................. 1,574.10 1,574.10
Quoted :
(i) Government Securities ................................................................................................................. 632.21 506.13
Investment in Government/Trust Securities ...................................................................................... 2,206.31 2,080.23
Investment in Debentures/Bonds : (Trade and fully paid-up)
Unquoted :
(i) In Joint Venture Companies ........................................................................................................ 160.09 160.09
Quoted :
(i) In Other Companies...................................................................................................................... 20.00 53.54
Investment in Debentures/Bonds : (Trade and fully paid-up) ........................................................ 180.09 213.63
Other Investments :
Unquoted :
(i) In Other Companies...................................................................................................................... 4.80 3.21
8,800.35 8,013.93
Group Share of Joint Ventures ............................................................................................................ 58.74 —
8,859.09 8,013.93
Less : Provision for diminution in value of Long Term Investments................................................ 114.92 114.94
8,744.17 7,898.99
Other Disclosures :
(i) Aggregate amount of quoted Investments (Gross) .................................................................. 6,832.27 5,886.07
Market Value of quoted Investments ......................................................................................... 15,566.22 19,997.59
(ii) Aggregate amount of unquoted Investments (Gross) ............................................................. 2,026.82 2,127.86

232 Annual Report 2015-16

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15. (B) Current Investments (At Cost, unless otherwise specified)

Rupees crores
2016 2015
Current Current
Investment in Equity Instruments (Unquoted) ................................................................................. — 0.10
Investment in Government Securities (Quoted) .............................................................................. 1.91 12.78
Investment in Debentures/Bonds (Quoted) ..................................................................................... 135.16 126.12
Other Investments (Unquoted) :
(i) Units of Mutual Funds .................................................................................................................. 2,271.21 1,703.86
(ii) Certificate of Deposits.................................................................................................................. 860.44 273.16
(iii) Commercial Paper ......................................................................................................................... 150.00 15.00
3,418.72 2,131.02
Group Share of Joint Ventures ............................................................................................................ 14.00 0.07
3,432.72 2,131.09
Less : Aggregate excess of cost over fair value, by category ........................................................... 0.04 2.94
3,432.68 2,128.15
Other Disclosures :
(i) Aggregate amount of quoted Investments (Gross) .................................................................. 137.07 138.90
Market Value of quoted Investments ......................................................................................... 137.46 136.84
(ii) Aggregate amount of unquoted Investments (Gross) ............................................................. 3,295.65 1,992.19

16. Long Term Loans and Advances : (contd.)

Rupees crores
2016 2015
(A) Capital Advances :
Unsecured, considered good ..................................................................... 445.93 671.12
Doubtful....................................................................................................... 2.75 3.21
448.68 674.33
Less : Provision for doubtful Capital Advances ...................................... 2.75 3.21
445.93 671.12
(B) Security Deposits :
Unsecured, considered good .................................................................... 270.77 265.00
Doubtful....................................................................................................... 1.81 1.71
272.58 266.71
Less : Provision for doubtful Security Deposits ....................................... 1.81 1.71
270.77 265.00
(C) Loans and Advances to Related Parties :
Unsecured, considered good .................................................................... 12.81 8.04
Doubtful....................................................................................................... 10.00 10.00
22.81 18.04
Less : Provision for doubtful Loans and Advances to Related Parties .... 10.00 10.00
12.81 8.04
(D) Loans and Advances against Assets :
Secured, considered good.......................................................................... 20,133.92 17,907.23
Doubtful....................................................................................................... 779.36 519.59
20,913.28 18,426.82
Less : Provision for doubtful Loans and Advances against Assets ........ 384.22 257.75
20,529.06 18,169.07

Mahindra & Mahindra Limited 233

16. Long Term Loans and Advances : (contd.)
Rupees crores
2016 2015

(E) Other Loans and Advances :

Secured, considered good.......................................................................... 5.60 6.85
Unsecured, considered good .................................................................... 3,341.40 3,600.10
Doubtful....................................................................................................... 19.05 7.89
3,366.05 3,614.84
Less : Provision for doubtful Other Loans and Advances ...................... 19.05 7.89
3,347.00 3,606.95
24,605.57 22,720.18
Group Share of Joint Ventures .................................................................. 1,998.49 1,346.29
26,604.06 24,066.47

Other Loans and Advances includes VAT receivable, payment towards income-tax & surtax, MAT Credit entitlement, other recoverable
expenses and advances to employees.

17. Other Non-Current Assets :

Rupees crores
2016 2015
(A) Long Term Trade Receivables:
Unsecured, considered good ........................................................................................................ 561.64 444.35
Doubtful.......................................................................................................................................... 6.67 0.49
568.31 444.84
Less : Provision for doubtful Long Term Trade Receivables ...................................................... 6.67 0.49
561.64 444.35

(B) Others: 92.04 121.86

653.68 566.21
Group Share of Joint Ventures ..................................................................................................... 1.45 15.55
655.13 581.76

18. Inventories :
Rupees crores
2016 2015
(i) Raw Materials and Bought-out Components [includes in transit Rs. 748.66 crores
(2015 : Rs. 798.89 crores)] ............................................................................................................ 3,477.89 3,159.83
(ii) Contracts and Work-in-Progress................................................................................................... 507.28 462.36
(iii) Work-in-Progress – Property Development Activity and Long Term Contracts ..................... 2,583.77 1,735.99
(iv) Manufactured Components .......................................................................................................... 119.47 125.33
(v) Finished Products produced ......................................................................................................... 2,526.59 2,109.62
(vi) Stock-in-Trade [includes in transit Rs. 66.66 crores (2015 : Rs. 40.11 crores)] ........................ 738.48 541.54
(vii) Stores and Spares ........................................................................................................................... 133.25 122.30
(viii) Loose Tools ..................................................................................................................................... 46.79 47.77
(ix) Food, Beverages, Smokes and Operating Supplies .................................................................... 11.32 5.84
10,144.84 8,310.58
Group Share of Joint Ventures ............................................................................................................ 484.15 142.81
10,628.99 8,453.39

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19. Trade Receivables :

Rupees crores
2016 2015
(A) Secured, considered good
Outstanding for a period exceeding six months from the date they are due for payment 6.86 6.74
Others.............................................................................................................................................. 389.76 194.07
396.62 200.81
(B) Unsecured, considered good
Outstanding for a period exceeding six months from the date they are due for payment 645.05 647.75
Others.............................................................................................................................................. 5,004.91 4,603.35
5,649.96 5,251.10
(C) Doubtful
Outstanding for a period exceeding six months from the date they are due for payment 167.04 122.44
Others.............................................................................................................................................. 1.54 2.22
168.58 124.66
Less : Provision for doubtful Trade Receivables ......................................................................... 168.58 124.66
— —

6,046.58 5,451.91
Group Share of Joint Ventures ..................................................................................................... 372.46 24.25

6,419.04 5,476.16

20. Cash and Bank Balances :

Rupees crores
2016 2015
(A) Cash and Cash Equivalents :
Balances with Banks :
(i) On Current Accounts .......................................................................... 1,352.11 951.88
(ii) Fixed Deposits with original maturity less than 3 months ............ 673.97 1,599.96
2,026.08 2,551.84
Cheques, drafts on hand............................................................................ 399.00 398.36
Cash on hand .............................................................................................. 31.14 22.55
Group Share of Joint Ventures .................................................................. 335.61 26.84
2,791.83 2,999.59

(B) Other Bank Balances :

Earmarked Balances with Banks ................................................................ 24.25 26.59
Balances with Banks :
(i) On Margin Accounts .......................................................................... 126.27 244.66
(ii) Fixed Deposits with original maturity greater than 3 months* ... 1,960.65 1,635.96
2,086.92 1,880.62
Group Share of Joint Ventures .................................................................. 3.48 5.03
2,114.65 1,912.24
4,906.48 4,911.83

* Includes deposits of Rs. 18.32 crores (2015 : Rs. 48.73 crores) with maturity greater than 12 months from Balance Sheet date.

Mahindra & Mahindra Limited 235

21. Short Term Loans and Advances :

Rupees crores
2016 2015
(A) Loans and Advances to Related Parties :
Unsecured, considered good ..................................................................... 6.38 4.55
Doubtful....................................................................................................... 5.35 5.80

11.73 10.35
Less : Provision for doubtful Loans and Advances to Related Parties ... 5.35 5.80

6.38 4.55

(B) Loans and Advances against Assets :

Secured, considered good.......................................................................... 14,962.68 13,445.37
Doubtful....................................................................................................... 2,152.97 1,361.03

17,115.65 14,806.40
Less : Provision for doubtful Loans and Advances against Assets ........ 1,135.12 709.88

15,980.53 14,096.52

(C) Other Loans and Advances :

Secured, considered good.......................................................................... 10.64 60.69
Unsecured, considered good ..................................................................... 3,297.04 3,101.57
Doubtful....................................................................................................... 75.21 66.90

3,382.89 3,229.16
Less : Provision for doubtful other Loans and Advances ....................... 75.21 66.90

3,307.68 3,162.26

19,294.59 17,263.33
Group Share of Joint Ventures .................................................................. 723.70 548.47

20,018.29 17,811.80

Other Loans and Advances includes balances with government authorities, MAT credit entitlement, advance to suppliers, other recoverable
expenses, deposits and prepaid expenses.

22. Other Current Assets :

Rupees crores
2016 2015
(i) Government Grant Receivable...................................................................................................... 319.54 302.11
(ii) Others.............................................................................................................................................. 751.05 644.22
1,070.59 946.33

Less : Provision for doubtful other current assets ............................................................................. 3.87 3.88
1,066.72 942.45
Group Share of Joint Ventures ............................................................................................................. 72.79 26.33
1,139.51 968.78

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23. Revenue from Operations :

Rupees crores
2016 2015
Sale of Products ................................................................................................... 70,318.11 64,552.74
Sale of Services .................................................................................................... 3,275.63 2,251.59
Group Share of Joint Ventures ......................................................................... 842.31 98.86
Gross Revenue from Sale of Products and Services......................................... 74,436.05 66,903.19
Other Operating Revenues
(i) Income from long term contracts ............................................................. 643.15 878.88
(ii) Lease and rental income ............................................................................ 48.94 141.83
(iii) Scrap Sales ................................................................................................... 168.59 210.60
(iv) Interest income of financial enterprises consolidated............................ 6,326.40 5,840.21
(v) Dividend Income of Investment enterprises consolidated ..................... 0.19 0.12
(vi) Government Grant and Incentives ............................................................ 363.95 462.24
(vii) Others........................................................................................................... 567.70 469.94
Group Share of Joint Ventures ......................................................................... 110.71 82.22
8,229.63 8,086.04
82,665.68 74,989.23
Less: Excise Duty attributable to products sold............................................... 4,650.08 3,541.23
78,015.60 71,448.00

24. Other Income :

Rupees crores
2016 2015
(i) Interest Income :
(a) Interest – Current Investments.......................................................... 40.93 17.98
(b) Interest – others ................................................................................. 243.11 284.29
284.04 302.27
(ii) Dividend on long term Investments ......................................................... 0.15 0.17
(iii) Dividend on current Investments .............................................................. 61.44 94.94
(iv) Profit on sale of current Investments (Net) ............................................. 59.80 21.31
(v) Other non operating Income .................................................................... 117.86 105.05
523.29 523.74
Group Share of Joint Ventures .......................................................................... 17.71 1.29
541.00 525.03

25. Cost of Materials Consumed :

Rupees crores
2016 2015
Opening Stock ........................................................................................................................................ 3,159.83 2,988.12
Add : Purchases ..................................................................................................................................... 42,748.22 40,403.40
45,908.05 43,391.52
Add : Stock on Acquisition/(Disposal) .................................................................................................. (2.55) 65.58
45,905.50 43,457.10
Less : Closing Stock................................................................................................................................. 3,477.89 3,159.83
42,427.61 40,297.27
Foreign currency translation ................................................................................................................. 83.25 15.51
Group Share of Joint Ventures ............................................................................................................. 662.55 74.05
43,173.41 40,386.83

Mahindra & Mahindra Limited 237

26. Changes in Inventories of Finished Goods, Work-in-Progress, Stock-in-Trade and Manufactured Components :
Rupees crores
2016 2015
Opening Stock :
(i) Finished Products Produced.......................................................................................................... 2,109.62 2,256.48
(ii) Contracts and Work-in-Progress................................................................................................... 462.36 544.21
(iii) Stock-in-Trade ................................................................................................................................. 541.54 572.93
(iv) Manufactured Components .......................................................................................................... 125.33 144.43
3,238.85 3,518.05
Add : Stock on Acquisition/(Disposal) :
(i) Finished Products Produced.......................................................................................................... (0.79) 100.49
(ii) Contracts and Work-in-Progress................................................................................................... (1.32) (103.37)
(iii) Manufactured Components .......................................................................................................... — (2.18)
(2.11) (5.06)
Less : Closing Stock :
(i) Finished Products Produced.......................................................................................................... 2,526.59 2,109.62
(ii) Contracts and Work-in-Progress................................................................................................... 507.28 462.36
(iii) Stock-in-Trade ................................................................................................................................. 738.48 541.54
(iv) Manufactured Components .......................................................................................................... 119.47 125.33
3,891.82 3,238.85
(655.08) 274.14
Excise Duty paid on changes in inventories of finished goods......................................................... 66.87 28.25
Foreign currency translation ................................................................................................................. 32.59 (26.54)
Group Share of Joint Ventures ............................................................................................................ 31.25 (1.72)
(Increase)/decrease in Stock .................................................................................................................. (524.37) 274.13

27. Employee Benefits Expense :

Rupees crores
2016 2015
(i) Salaries, Wages, Bonus, etc. ......................................................................................................... 6,350.15 5,551.01
(ii) Contribution to Provident and other funds ............................................................................... 599.00 915.32
(iii) Employee Stock Compensation Expense ..................................................................................... 113.33 51.51
(iv) Welfare............................................................................................................................................ 782.01 668.51
7,844.49 7,186.35
Group Share of Joint Ventures ............................................................................................................ 147.75 16.14
7,992.24 7,202.49

28. Finance Costs :

Rupees crores
2016 2015
(i) Interest Expense ............................................................................................................................ 3,221.35 3,017.42
(ii) Other Borrowing Costs ................................................................................................................. 104.36 107.15
3,325.71 3,124.57
Group Share of Joint Ventures ........................................................................................................... 47.23 32.12
3,372.94 3,156.69

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29. Other Expenses :

Rupees crores
2016 2015
(i) Stores consumed ...................................................................................... 330.96 358.14
(ii) Tools consumed ........................................................................................ 49.53 48.65
(iii) Power and Fuel......................................................................................... 780.73 786.96
(iv) Rent including lease rentals.................................................................... 496.25 375.18
(v) Rates and Taxes ........................................................................................ 115.62 116.58
(vi) Insurance ................................................................................................... 115.94 89.06
(vii) Repairs and Maintenance :
(a) Buildings ........................................................................................... 108.87 79.07
(b) Machinery ......................................................................................... 296.89 274.62
(c) Others ............................................................................................... 241.58 220.40

647.34 574.09

(viii) Advertisement .......................................................................................... 871.55 668.02

(ix) Commission on sales/contracts (Net) ..................................................... 1,113.09 893.10
(x) Freight outward ....................................................................................... 2,094.65 1,961.78
(xi) Sales Promotion Expenses ....................................................................... 1,264.61 957.18
(xii) Dealer and other sales incentives .......................................................... 576.34 533.08
(xiii) Travelling and Conveyance Expenses ..................................................... 464.79 396.64
(xiv) Cost of Projects, Property etc ................................................................. 589.57 490.38
(xv) Subcontracting, Hire and Service Charges ............................................ 1,171.23 1,082.13
(xvi) Provision for doubtful trade and other receivables, loans and 619.30 372.31
advances ....................................................................................................
(xvii) Donations and contributions .................................................................. 100.29 96.11
(xviii) Excess of carrying cost over fair value of current investments, (2.90) (0.76)
reversed (Net) ...........................................................................................
(xix) Miscellaneous expenses .......................................................................... 3,889.98 3,030.80

15,288.87 12,829.43
Group Share of Joint Ventures ......................................................................... 236.08 57.88

15,524.95 12,887.31

30. During the year, Mahindra & Mahindra Financial Services Limited (MMFSL) has without recourse securitised on “at par” basis vide PTC
route loan receivables of 30,940 contracts (2015: 27,907 contracts) amounting to Rs. 855.87 crores (2015 : Rs. 722.30 crores) for a consideration of
Rs. 855.87 crores (2015: Rs. 722.30 crores) and de-recognised the assets from the books.

Mahindra & Mahindra Limited 239

31. (a) Provision for warranty relates to warranty provision made in respect of sale of certain products, the estimated costs of which are accrued
at the time of sale.

(b) Provision on standard assets relates to those created under regulatory compliances of certain financial enterprises consolidated.
The movement in above provisions is as follows :
Rupees crores
Warranty Standard Assets
2016 2015 2016 2015
Balance as at 1 April...........................................................
st
1,227.74 1,149.23 134.74 121.43
Add :
Provision made during the year ......................................... 605.21 563.27 17.76 13.31
Subsidiaries acquired during the year................................ 13.63 16.43 — —
1,846.58 1,728.93 152.50 134.74
Less :
Utilisation during the year .................................................. 520.68 506.40 — —
1,325.90 1,222.53 152.50 134.74
Add :
Adjustments due to Exchange Difference ......................... 21.82 5.21 — —
Balance as at 31 March ......................................................
st
1,347.72 1,227.74 152.50 134.74

Out of the above,*

Classified as Current ............................................................. 598.96 563.62 68.37 59.69
Classified as Non-Current .................................................... 748.76 664.12 84.13 75.05
Total ....................................................................................... 1,347.72 1,227.74 152.50 134.74

* Includes Group Share of Joint Ventures

32. Employee Defined Benefits :

General description of defined benefit plans:

Gratuity

Some of the group entities operate a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated
as per the Payment of Gratuity Act or the Company scheme applicable to the employee. The benefit vests upon completion of five years of
continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in
service, the gratuity is payable irrespective of vesting. Some entities make annual contribution to the group gratuity scheme administered by
the Life Insurance Corporation of India through its Gratuity Trust Fund.

Ssangyong Motor Company provides certain severance benefit to employees on leaving service. The benefit is payable after one year of
service and is one month’s salary for every completed year of service. Additionally based on number of years of service an additional benefit
is provided on normal retirement.

Post Retirement medical

Few entities in the group provide post retirement medical cover to select grade of employees to cover the retiring employee and their spouse
upto a specified age through mediclaim policy on which the premiums are paid by the Company. The eligibility of the employee for the
benefit as well as the amount of medical cover purchased is determined by the grade of the employee at the time of retirement.

Post Retirement housing allowance

The Company operates a post retirement benefit scheme for a certain grade of employees in which a monthly allowance determined on the
basis of the last drawn basic salary at the time of retirement, is paid to the retiring employee in lieu of housing.

240 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Defined Benefit Plans – as per Actuarial valuation on 31st March, 2016

Rupees crores
Funded Plan Unfunded Plan
Gratuity Gratuity Post Retirement Post Retirement
Medical Benefits Housing Allowance
2016 2015 2016 2015 2016 2015 2016 2015
A. Expense recognised in the Statement of Profit
and Loss for the year ended 31st March
1. Current Service Cost........................................ 74.42 54.98 259.91 214.71 1.17 0.98 2.64 2.04
2. Interest Cost ..................................................... 58.23 55.34 41.06 45.33 1.74 1.54 3.54 3.05
3. Expected return on Plan Assets..................... (35.22) (31.40) — — — — — —
4. Actuarial (Gains)/Losses .................................. (14.28) 35.79 (2.98) 179.56 2.38 2.62 (0.87) 5.79
5. Past Service Cost .............................................. — — 0.13 166.71 — — — —
6. Payments on account of employees
transferred ....................................................... 0.05 (1.86) 0.03 — — — — —
7. Effect of the limit in Para 59(b) of the
Revised AS 15 ................................................... — (0.01) — — — — — —
8. Total expense recognised in Employees
Benefits Expense ............................................. 83.20 112.84 298.15 606.31 5.29 5.14 5.31 10.88

B. Net Asset/(Liability) recognised in the Balance

Sheet as at 31st March
1. Present Value of Defined Benefit
Obligation as at 31st March ............................ 932.12 782.63 2,013.82 1,711.43 25.57 20.94 45.44 42.00
2. Fair value of Plan Assets as at 31st March .... 646.78 500.91 — — — — — —
3. Trust Fund Receivable ..................................... — — 7.28 8.03 — — — —
4. Net Asset/(Liability) as at 31st March ............ (285.34) (281.72) (2,006.54) (1,703.40) (25.57) (20.94) (45.44) (42.00)
5. Current Portion of the above ........................ (64.25) (60.23) (3.18) (2.67) (0.81) (0.65) (1.88) (1.01)
6. Non Current Portion of the above ................ (221.09) (221.49) (2,003.36) (1,700.73) (24.76) (20.29) (43.56) (40.99)

C. Change in the obligations during the year

ended 31st March
1. Present Value of Defined Benefit
Obligation at the beginning of the year...... 782.63 636.96 1,711.43 1,162.75 20.94 16.37 42.00 32.13
2. Adjustment to the opening balance/
exchange rate variation .................................. 7.81 0.40 56.89 (1.32) — — — —
3. Obligations arising on account of
acquisitions/Change in group interest
during the year ................................................ 98.38 58.34 86.91 0.22 — — — —
4. Consequent to sale/disposal of the
subsidiaries ....................................................... (5.27) (16.42) — (0.06) — — — —
5. Current Service Cost........................................ 74.42 54.98 259.91 214.71 1.17 0.98 2.64 2.04
6. Interest Cost ..................................................... 58.23 55.34 41.06 45.33 1.74 1.54 3.54 3.05
7. Actuarial (Gains)/Losses .................................. (10.20) 43.74 (2.98) 179.56 2.38 2.62 (0.87) 5.79
8. Benefits paid .................................................... (73.88) (50.71) (139.53) (56.47) (0.66) (0.57) (1.87) (1.01)
9. Past Service Cost .............................................. — — 0.13 166.71 — — — —
10. Present Value of Defined Benefit Obligation
at the end of the year .................................... 932.12 782.63 2,013.82 1,711.43 25.57 20.94 45.44 42.00

Mahindra & Mahindra Limited 241

 Rupees crores
Funded Plan Unfunded Plan
Gratuity Gratuity Post Retirement Post Retirement
Medical Benefits Housing Allowance
2016 2015 2016 2015 2016 2015 2016 2015
D. Change in the fair value of Plan Assets during
the year ended 31st March

1. Fair value of Plan Assets at the beginning

of the year ....................................................... 500.91 448.30 — — — — — —
2. Adjustment to the opening balance/
exchange rate variation .................................. 2.95 0.69 — — — — — —
3. Fair value of Plan Assets arising on account
of acquisitions during the year...................... 77.43 18.06 — — — — — —
4. Fair value of Plan Assets transferred on
disposal/sale of subsidiaries ........................... (2.40) (13.29) — — — — — —
5. Expected return on Plan Assets..................... 35.22 31.40 — — — — — —
6. Actuarial Gains/(Losses) .................................. 4.08 7.95 — — — — — —
7. Contributions by employer ............................ 102.47 58.51 — — 0.66 0.57 1.87 1.01
8. Actual Benefits paid........................................ (73.88) (50.71) — — (0.66) (0.57) (1.87) (1.01)
9. Fair value of Plan Assets at the end of the
year ................................................................... 646.78 500.91 — — — — — —
10. Actual return on Plan Assets ......................... 39.30 38.94 — — — — — —

E. Major category of Plan Assets as a percentage

of total plan

Insurer Managed Funds* ......................................... 100.00% 100.00% — — — — — —

F. Actuarial Assumptions

1. Discount Rate ................................................... 0.99%- 0.84% - 1.87%- 2.28% - 7.81%- 8.00% - 7.85% 8.00%
8.40% 9.00% 8.10% 9.10% 8.00% 8.05%
2. Expected rate of return on plan assets ........ 1.85%- 1.85% - — — — — — —
9.50% 9.30%
3. Attrition rate.................................................... 1.00%- 1.00% - 1.00%- 1.00% - 1.00%- 1.00% - — —
35.76% 43.91% 25.00% 25.00% 9.00% 9.00%
4. Medical premium inflation............................. — — — — 3.00%- 3.00% - — —
7.00% 7.00%

* In the absence of detailed information regarding plan assets which is funded with Insurance Companies, the composition of each major category of plan
assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.

Rupees crores
One percentage point increase One percentage point decrease
in medical inflation rate in medical inflation rate
2016 2015 2016 2015
G. Effect of one percentage point change in the assumed
medical inflation rate
Effect on the aggregate service and interest cost of Post
Employment Medical benefits ......................................................... 0.60 0.48 (0.52) (0.39)
Effect on the accumulated Post Employment Medical benefit
obligations ......................................................................................... 3.60 2.99 (3.12) (2.50)

242 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

Rupees crores
H. Experience Adjustments Period ended
2016 2015 2014 2013 2012
Gratuity (Funded)
Defined Benefit Obligation ................................................................. 932.12 782.63 636.96 569.32 500.99
Fair value of plan assets ...................................................................... 646.78 500.91 448.30 425.19 384.51
Surplus/(Deficit) .................................................................................... (285.34) (281.72) (188.70) (144.14) (116.48)
Experience adjustment on plan liabilities [(Gain)/Loss] ................... (14.88) (7.61) 74.10 7.86 20.90
Experience adjustment on plan assets [Gain/(Loss)] ........................ 5.47 9.01 6.50 10.89 8.97
Gratuity (Unfunded)
Defined Benefit Obligation ................................................................. 2,006.54 1,703.40 1,154.54 857.05 1,024.92
Surplus/(Deficit) .................................................................................... (2,006.54) (1,703.40) (1,154.54) (857.05) (1,024.92)
Experience adjustment on Plan Liabilities [(Gain)/Loss] .................. 39.54 0.08 (1.20) 21.38 4.10
Post Retirement Medical Benefits (Unfunded)
Defined Benefit Obligation ................................................................. 25.57 20.94 16.37 15.53 13.87
Surplus/(Deficit) .................................................................................... (25.57) (20.94) (16.37) (15.53) (13.87)
Experience adjustment on Plan Liabilities [(Gain)/Loss] .................. 1.91 0.09 1.07 (0.67) (0.16)
Post Retirement Housing Allowance (Unfunded)
Defined Benefit Obligation ................................................................. 45.44 42.00 32.13 31.46 24.95
Surplus/(Deficit) .................................................................................... (45.44) (42.00) (32.13) (31.46) (24.95)
Experience adjustment on Plan Liabilities [(Gain)/Loss] .................. (1.55) 1.56 0.75 2.55 6.28

33. Contingent Liability and Commitments :

(A) Contingent Liability
(i) Claims against the Company not acknowledged as debts comprise :

(a) Excise Duty, Sales Tax and Service Tax claims disputed by the Company relating to issues of applicability and classification aggregating
Rs. 3,085.97 crores before tax (2015 : Rs. 2,100.10 crores before tax).

(b) Other matters (excluding claims where amounts are not ascertainable) : Rs. 332.31 crores before tax (2015 : Rs. 410.96 crores before
tax).

(c) Claims on capital account : Rs. 2.50 crores (2015 : Rs. 1.37 crores).

(d) Group Share of Joint Ventures : Rs. 1.49 crores before tax (2015 : Rs. 1.19 crores before tax).

(ii) Taxation matters :

(a) Demands not acknowledged as debts and not provided for, relating to issues of deductibility and taxability in respect of which the
matters are in appeal and exclusive of the effect of similar matters in respect of assessments remaining to be completed :

– Income Tax matters : Rs. 869.08 crores (2015 : Rs. 922.28 crores).

– Group Share of Joint Ventures : Rs. 4.19 crores (2015 : Rs. 1.48 crores).

(b) Items which have succeeded in appeal, but the Income Tax Department is pursuing/likely to pursue in appeal/reference and exclusive
of the effect of similar matters in respect of assessments remaining to be completed :

– Income Tax matters : Rs. 385.74 crores (2015 : Rs. 353.94 crores).

– Surtax matters : Rs. 0.13 crores (2015 : Rs. 0.13 crores).

– Group Share of Joint Ventures : Rs. 1.09 crores (2015 : Rs. Nil crores).

(iii) Bills discounted not matured Rs. 6.45 crores (2015 : Rs. 19.78 crores).

Mahindra & Mahindra Limited 243

 (iv) Corporate undertaking on assignment by Mahindra & Mahindra Financial Services Limited Rs. 325.28 crores (2015 : Rs. 396.46 crores).

(v) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) by its order dated 7th December, 2009 has rejected the Company’s
appeal against the order dated 30th March, 2005 passed by the Commissioner of Central Excise (Adjudication), Navi Mumbai confirming
the demand made on the Company for payment of differential excise duty (including penalty) of Rs. 304.10 crores in connection with the
classification of Company’s Commander range of vehicles, during the years 1991 to 1996. Whilst the Company had classified the Commander
range of vehicles as 10-seater attracting a lower rate of excise duty, the Commissioner of Central Excise (Adjudication), Navi Mumbai, has
held that these vehicles could not be classified as 10-seater as they did not fulfil the requirement of 10-seater vehicles, as provided under
the Motor Vehicles Act, 1988 (MVA) read with Maharashtra Motor Vehicles Rules, 1989 (MMVR) and as such attracted a higher rate of excise
duty. The Company has challenged the CESTAT order in the Supreme Court.

In earlier collateral proceedings on this issue, the CESTAT had, by an order dated 19th July, 2005 settled the controversy in the Company’s
favour. The CESTAT had accepted the Company’s submission that MVA and MMVR could not be referred to for determining the classification
for the purpose of levy of excise duty and rejected the Department’s appeal against the order of the Collector, Central Excise classifying
the Commander range of vehicles as 10-seater. The Department had challenged the CESTAT order in the Supreme Court.

Without prejudice to the grounds raised in this appeal, the Company has paid an amount of Rs. 40.00 crores in January, 2010.
The Supreme Court has admitted the Company’s appeal and has stayed the recovery of the balance amount till further orders.

Both these orders of the Tribunals were heard and disposed off by the Honourable Supreme Court, in August 2014. Since contrary views
were expressed by the Tribunals in two parallel proceedings, the Honourable Supreme Court directed that a larger bench of the Tribunal
be constituted to hear the appeals without expressing any opinion on the issues. The Larger Bench of the CESTAT heard the matter in
February, 2015 and by an order dated 27 February, 2015, remanded the matter to the Commissioner of Central Excise for consideration
of the case afresh keeping all issues open.

The Company strongly believes, based on legal advice it has received, that it has a good case on merits so as to ultimately succeed
in the matter.

In another case relating to Armada range of vehicles manufactured during the years 1992 to 1996, by the Company at its Nashik facility,
the Commissioner of Central Excise, Nashik passed an order dated 20th March, 2006 confirming a demand of Rs. 24.75 crores, on the same
grounds as adopted for Commander range of vehicles. The CESTAT has given an unconditional stay against this order. The final hearing in
this matter has been adjourned till the disposal of the appeal by the Supreme Court in the matter relating to Commander range of vehicles.

As such, the Company does not expect any liability on this account. However, in view of the CESTAT orders and subsequent proceedings,
pending their final outcome, the Company has reflected the above amount aggregating Rs. 328.85 crores (2015 : Rs. 328.85 crores) and
the interest of Rs. 377.64 crores (2015 : Rs. 341.44 crores) accrued on the same upto 31st March, 2016, under Note (i)(a) above.

(vi) In respect (i) and (ii) of the above, It is not practicable for the Company to estimate the closure of these issues and the consequential
timings of cash flows, if any.

(B) Commitments

The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2016
is Rs. 1,008.89 crores (2015 : Rs. 1,345.07 crores) and other commitment as at 31st March 2016 is Rs. 8.50 crores (2015: Rs. Nil crores).

Group Share of Joint Ventures : Rs. 6.34 crores (2015 : Rs. 2.01 crores).

34. Research and Development Expenditure debited to the Statement of Profit and Loss, including certain expenditure based on allocations made
aggregate Rs. 1,442.66 crores (2015 : Rs. 1,419.16 crores).

Group Share of Joint Ventures : Rs. 14.83 crores (2015 : Rs. 0.37 crores).

35. The net difference in foreign exchange loss debited to the Statement of Profit and Loss is Rs. 350.74 crores (2015 : gain of Rs. 66.82 crores).

36. Investment fluctuation reserve utilised during the year comprises :

Rupees crores
2016 2015
(i) Provision for diminution in value of certain long term investments ............................................. — 7.50
(ii) Impairment of goodwill on consolidation......................................................................................... 82.37 177.02
82.37 184.52

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Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

37. Exceptional items (net) of Rs. 5.03 crores (credit) [2015 : Rs. 274.90 crores (credit)], comprise :
Rupees crores
2016 2015
Profit on change in ownership interest in subsidiaries / disposal of subsidiaries (Net)............... 5.03 274.90
5.03 274.90

38. Earnings per Share :

2016 2015
Profit for the year (Rupees crores) ............................................................................................................. 3,211.26 3,137.47
Profit for the year for diluted earnings per share (Rupees crores) ........................................................ 3,211.26 3,137.47
Weighted average number of Ordinary (Equity) Shares used in computing basic earnings per share 59,19,19,448 59,06,11,467
Effect of potential Ordinary (Equity) Shares on conversion of bonds and employee stock options 2,91,78,280 2,83,05,150
Weighted average number of Ordinary (Equity) Shares used in computing diluted earnings per share 62,10,97,728 61,89,16,617
Basic Earnings per share (Rs.) (Face value of Rs. 5 per share) ................................................................ 54.25 53.12
Diluted Earnings per share (Rs.) ................................................................................................................. 51.70 50.69

39. Related Party Disclosures :

(a) Names of related parties where transactions have taken place during the year :
(i) Associates :

Sl. No. Name of Company Sl. No. Name of Company

1. Mahindra Construction Company Limited 7. Topical Builders Private Limited
2. Mahindra & Mahindra Contech Limited 8. CIE Automotive, S.A.
3. Swaraj Engines Limited 9. Mahindra Tsubaki Conveyor Systems Private Limited
4. Mahindra CIE Automotive Limited 10. PSL Media & Communications Limited
5. Tech Mahindra Limited 11. Kota Farm Services Limited
6. Kismat Developers Private Limited

(ii) Joint Ventures :

Sl. No. Name of the Company
1. Mahindra Sona Limited
2. Mitsubishi Mahindra Agricultural Machinery Co., Ltd

(iii) Joint Ventures of a Subsidiary :

Sl. No. Name of Company Sl. No. Name of Company
1. Mahindra Solar One Private Limited 4. Mahindra Homes Private Limited
2. Mahindra Finance USA LLC 5. Jinan Qingqi Peugeot Motocycles Company Limited
3. Arabian Dreams Hotel Apartments LLC 6. Mahindra Inframan Water Utilities Private Limited

(iv) Key Management Personnel (KMP) :

1. Chairman and Managing Director............................................................................................... Mr. Anand G. Mahindra
2. Executive Director and Group President (Auto & Farm Sector) ............................................... Dr. Pawan Goenka

(v) Enterprise over which KMP is able to exercise significant influence :

Sl. No. Name of the Company
1. Prudential Management & Services Private Limited
(vi) Welfare Funds :
Sl. No. Name of the Funds
1. M&M Benefit Trust
2. M&M Employees’ Welfare Fund No. 1 (formerly known as M&M Employees’ Welfare Fund)
3. M&M Employees’ Welfare Fund No. 2 (formerly known as M&M Employees’ Farm Equipment Sector Employees’ Welfare Fund)
4. Mahindra World School Education Trust
5. M&M Employees’ Welfare Fund No. 3 (formerly known as Mahindra Spicer Limited Employees’ Welfare Fund)

Mahindra & Mahindra Limited 245

(b) The related party transactions are as under :
Rupees crores
Sl. Nature of Transactions Associate Joint KMP/KMP Welfare
No. Companies Ventures/Joint Exercising Funds
Ventures of Significant
Subsidiaries ** Influence
1. Purchases :
Goods ............................................................................................. 1,410.90 719.80 — —
(1,459.50) (176.54) (—) (—)
Fixed Assets ................................................................................... 3.22 — — —
(23.74) (—) (—) (—)
Services .......................................................................................... 135.90 21.15 — —
(157.93) (8.75) (0.29) (—)

2. Sales :
Goods ............................................................................................. 148.49 38.54 — —
(326.69) (9.50) (—) (—)
Fixed Assets ................................................................................... 0.43 — — —
(0.42) (—) (—) (—)
Services .......................................................................................... 31.12 0.71 — —
(39.81) (3.81) (—) (*)
3. Investments :
Purchases/Subscribed/Conversion ............................................... — — — —
(890.96) (—) (—) (—)
Sales/Redemption/Conversion .................................................... — — — —
(322.98) (—) (—) (—)
4. Deputation of Personnel :
From Parties .................................................................................. 1.11 — — —
(1.00) (—) (—) (—)
To Parties ....................................................................................... 5.68 — — —
(7.80) (—) (—) (—)
5. Managerial Remuneration........................................................... — — 12.97 —
(—) (—) (11.96) (—)
6. Stock Options ................................................................................ — — # —
(—) (—) (#) (—)
7. Finance :
Inter Corporate Deposits given................................................... — — — —
(0.30) (3.11) (—) (—)
Inter Corporate Deposits Refunded by parties ......................... 0.55 — — —
(41.83) (0.28) (—) (—)
Loan given ..................................................................................... — — 9.00 —
(—) (—) (—) (—)
Refund of loan given ................................................................... — — 4.50 —
(—) (—) (—) (—)
Interest Income ............................................................................. 0.28 58.11 0.19 —
(2.10) (58.02) (0.03) (—)
Dividend received ......................................................................... 192.15 3.55 — —
(155.89) (3.54) (—) (—)
Dividend distributed .................................................................... — — 86.17 64.64
(—) (—) (100.89) (75.29)

Previous year’s figures are in brackets

* Denotes amounts loss than Rs. 50,000.
** Transactions with Joint Ventures/Joint Ventures of Subsidiaries has been reported at full value.
# Refer Clause VI of Annexure VII to the Board’s Report.

246 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

(b) The related party transactions are as under : (contd.)

Rupees crores
Sl. Nature of Transactions Associate Joint KMP/KMP Welfare
No. Companies Ventures/Joint Exercising Funds
Ventures of Significant
Subsidiaries ** Influence
8. Other Transactions :
Other Income ................................................................................ 0.85 0.59 — 62.19
(1.79) (1.46) (—) (72.57)
Other Expenses ............................................................................. 0.24 0.01 — —
(0.17) (*) (—) (—)
Reimbursements received from parties ..................................... 7.71 0.21 — 0.75
(49.62) (0.06) (—) (—)

Reimbursements made to parties............................................... 4.82 — — 0.08

(7.24) (—) (—) (0.07)
9. Outstandings :
Payable .......................................................................................... 148.18 98.72 3.19 —
(140.21) (36.84) (2.86) (—)
Receivable ..................................................................................... 32.33 64.33 5.80 17.00
(76.32) (106.77) (1.09) (17.00)
Debenture/Bonds issued by parties ........................................... — 320.17 — —
(—) (320.17) (—) (—)
Inter Corporate Deposits Given .................................................. 7.80 14.36 — —
(8.35) (12.79) (—) (—)

10. Provision for Doubtful debts/advances ..................................... 11.24 — — 10.00

(11.70) (—) (—) (10.00)

11. Security Deposit paid ................................................................... 0.05 — — —

(0.02) (—) (—) (—)

12. Advances given ............................................................................. 1.73 — 0.02 —

(—) (—) (—) (—)

13. Advances Refunded...................................................................... 0.16 — — —

(—) (—) (—) (—)

14. Security Deposit received ............................................................ 0.01 — — —

(—) (—) (—) (—)
Previous year’s figures are in brackets
* Denotes amounts loss than Rs. 50,000.
** Transactions with Joint Ventures/Joint Ventures of Subsidiaries has been reported at full value.

Mahindra & Mahindra Limited 247

The Significant related party transaction are as under :
Rupees crores
Sl. Nature of Transactions Associate Companies Amount Joint Ventures/Joint Ventures Amount
No. of Subsidiaries **
1. Purchases – Goods Swaraj Engines Limited 622.50 Mitsubishi Mahindra 372.31
(626.14) Agricultural Machinery Co., Ltd (—)

Mahindra CIE Automotive 788.40 Mahindra Sona Limited 199.08

Limited (827.35) (176.54)

Jinan Qingqi Peugeot 148.41

Motocycles Company Limited (—)

2. Purchases – Fixed Assets Tech Mahindra Limited 1.19

(13.76)

Mahindra Tsubaki Conveyor 0.44

Systems Private Limited (3.16)

Mahindra CIE Automotive 1.60

Limited (6.82)

3. Purchases – Services Tech Mahindra Limited 131.26 Mahindra Homes 11.71

(152.56) Private Limited (3.62)

Arabian Dreams Hotel 9.44

Apartments LLC (5.14)

4. Sales – Goods Mahindra CIE Automotive 126.49 Mahindra Solar One Private —
Limited (316.49) Limited (9.50)
Mitsubishi Mahindra 36.01
Agricultural Machinery Co., Ltd (—)

5. Sales – Fixed Assets Mahindra CIE Automotive 0.43

Limited (0.39)
6. Sales – Services Tech Mahindra Limited 18.08 Mahindra Solar One Private 0.62
(28.49) Limited (3.10)
Mahindra CIE Automotive 12.28 Mahindra Sona Limited 0.09
Limited (10.47) (0.70)

7. Purchases/Subscribed/Conversion Tech Mahindra Limited —

– Investments (364.66)

Mahindra CIE Automotive —

Limited (526.30)

8. Sales/Redemption/Conversion – Tech Mahindra Limited —

Investments (64.15)
Mahindra CIE Automotive —
Limited (258.83)

9. Deputation of Personnel from Mahindra & Mahindra 0.32

related parties Contech Limited (0.33)

Swaraj Engines Limited 0.79

(0.67)

248 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

The Significant related party transaction are as under : (contd.)

Rupees crores
Sl. Nature of Transactions Associate Companies Amount Joint Ventures/Joint Ventures Amount
No. of Subsidiaries **
10. Deputation of Personnel Swaraj Engines Limited 4.53
to related parties (4.53)
Mahindra CIE Automotive —
Limited (1.71)
Tech Mahindra Limited 1.10
(1.52)

11. Inter Corporate Deposits Given Topical Builders Private — Arabian Dreams Hotel —
Limited (0.30) Apartments LLC (3.09)

12. Inter Corporate Deposits Mahindra CIE Automotive — Mahindra Water Utilities —
refunded by parties Limited (41.83) Limited (0.30)
Topical Builders Private 0.55
Limited (—)

13. Interest Income Mahindra CIE Automotive — Mahindra Homes Private 56.51
Limited (1.78) Limited (56.51)

Topical Builders Private 0.28

Limited (0.32)
14. Dividend Received Tech Mahindra Limited 153.87 Mahindra Sona Limited 3.55
(121.35) (3.54)
CIE Automotive, S.A. 24.45
(19.11)
15. Other Income Tech Mahindra Limited 0.75 Mahindra Solar One Private 0.59
(0.52) Limited (1.46)
Mahindra CIE Automotive 0.10
Limited (1.27)
16. Other Expenses Mahindra CIE Automotive 0.06 Mahindra Sona Limited 0.01
Limited (0.06) (*)
Swaraj Engines Limited 0.17
(0.12)
17. Reimbursement received from Mahindra CIE Automotive 4.84 Mahindra Sona Limited 0.04
parties Limited (12.29) (0.04)
Tech Mahindra Limited 2.54 Mahindra Water Utilities —
(37.20) Limited (0.02)
Mahindra Homes Private 0.17
Limited (—)
18. Reimbursement made to parties Mahindra CIE Automotive 1.27
Limited (2.33)
Tech Mahindra Limited 3.55
(4.90)
Previous year’s figures are in brackets
* denotes amounts less than Rs. 50,000.
** Transactions with Joint Ventures/Joint Ventures of Subsidiaries has been reported at full value
The Significant related party transactions with Key Management Personnel are as under :
Rupees crores
Sl. No. Nature of Transaction Name of KMP Amount
1. Managerial Remuneration Mr. Anand G. Mahindra 6.59
(5.98)
Dr. Pawan Goenka 6.38
(5.98)
Previous year’s figures are in brackets

Mahindra & Mahindra Limited 249

40. Investment in Associates :
Rupees crores
No. of % of Cost of Goodwill/ Share in Carrying Cost
Equity shares Holding Investments Capital accumulated
held (Equity Reserve Profit/(Loss)/
Shares) Reserves
Unquoted :
Mahindra Construction Company Limited.......... 9,00,000 37.49% 0.97 — (0.97) —
9,00,000 37.49% 0.97 — (0.97) —
Officemartindia.com Limited ............................... 7,49,997 50.00% 0.22 — (0.22) —
7,49,997 50.00% 0.22 — (0.22) —
Rathna Bhoomi Enterprises Private Limited ....... 500 25.40% * — * —
500 25.41% * — * —
Kota Farm Services Limited .................................. 2,73,420 45.00% 0.27 — (0.27) —
2,73,420 45.00% 0.27 — (0.27) —
Mega One Stop Farm Services Limited ............... — — — — — —
3,51,000 45.00% 0.35 0.03 (0.35) —
Mahindra & Mahindra Contech Limited ............. 70,000 46.66% 1.73 — 2.64 4.37
70,000 46.66% 1.73 — 2.31 4.04
PSL Media & Communications Limited ............... 39,498 36.11% 0.01 — (0.01) —
39,498 36.11% 0.01 — (0.01) —
Kismat Developers Private Limited ...................... 15 42.86% * — * —
15 42.86% * — * —
Topical Builders Private Limited........................... 175 50.00% * — * —
175 50.00% * — * —
Mahindra Tsubaki Conveyor Systems Private
Limited .................................................................... 1,53,76,025 49.00% 18.31 — 11.02 29.33
1,53,76,025 49.00% 18.31 — 10.63 28.94
Holiday Club Resorts Oy ....................................... — — — — — —
7,07,777 22.34% 114.28 28.10 (0.76) 113.52
Kiinteistö Oy Seniori-Saimaa ................................ 9,50,000 26.67% 7.12 — (5.90) 1.22
— — — — — —
Koy Sallan Kylpylä ................................................. 49 41.95% 3.23 — (3.23) —
— — — — — —
Holiday Club Adventures Oy ................................ 30 25.68% 0.01 — (0.01) —
— — — — — —
Total - Unquoted ................................................... 34.92
146.50
Quoted:
Swaraj Engines Limited ......................................... 41,26,417 33.22% 1.63 (10.33) 60.75 62.38
41,26,417 33.22% 1.63 (10.33) 60.13 61.76
Tech Mahindra Limited ......................................... 25,66,93,512 26.51% 2,691.53 496.31 1,954.07 4,645.60
25,66,93,512 26.71% 2,691.53 496.31 1,261.20 3,952.73
Mahindra CIE Automotive Limited ...................... 6,52,71,407 20.18% 531.48 131.58 21.15 552.63
6,52,71,407 20.21% 531.48 131.58 (18.65) 512.83
CIE Automotive, S.A.
(Quoted on a stock exchange outside India) ..... 1,60,40,706 12.44% 870.26 294.23 46.84 917.10
1,60,40,706 12.44% 821.60 312.30 28.67 850.27
Total - Quoted ....................................................... 6,177.71
5,377.59
Total ........................................................................ 6,212.63
5,524.09
Current Years Figures are in Bold
* denotes amount less than Rs. 50,000
Share of Profit/(Loss) for Associates for the year Rs. 975.93 crores (2015 : Rs. 788.70 crores) includes Group Share of Joint Ventures
(Rs. 0.79 crores) (2015 : Rs. Nil crores)

250 Annual Report 2015-16

 41. Segment Information
Segment Report for the year ended 31st March, 2016
Primary Segment Disclosure - Business Segment
Overview
Company

Rupees crores
Automotive Farm IT Financial Steel Infrastructure Hospitality Systech Two Others Total Eliminations Consolidated
Equipment Services Services Trading and Wheelers Total
Processing
REVENUE
Gross External Revenue 50,332.55 17,330.47 382.39 6,578.46 1,063.89 830.29 1,598.24 894.47 1,493.34 2,161.58 82,665.68 — 82,665.68
Report
Board’s

45,984.28 15,903.82 314.13 6,037.61 1,146.46 1,106.69 770.89 1,112.82 919.62 1,692.91 74,989.23 — 74,989.23
Less : Excise Duty on Sales 4,210.84 149.11 — — 111.92 — — 91.10 72.91 14.20 4,650.08 — 4,650.08
3,128.60 133.74 — — 106.08 — — 98.52 59.68 14.61 3,541.23 — 3,541.23
Net External Sales 46,121.71 17,181.36 382.39 6,578.46 951.97 830.29 1,598.24 803.37 1,420.43 2,147.38 78,015.60 — 78,015.60
42,855.68 15,770.08 314.13 6,037.61 1,040.38 1,106.69 770.89 1,014.30 859.94 1,678.30 71,448.00 — 71,448.00
Inter Segment Revenue 176.28 31.03 51.72 15.06 300.78 4.48 0.38 8.78 1.09 1,350.42 1,940.02 (1,940.02) —
139.16 19.29 38.93 15.83 279.59 3.60 41.24 7.38 0.09 1,375.92 1,921.03 (1,921.03) —

Total Revenue 46,297.99 17,212.39 434.11 6,593.52 1,252.75 834.77 1,598.62 812.15 1,421.52 3,497.80 79,955.62 (1,940.02) 78,015.60
and Analysis

42,994.84 15,789.37 353.06 6,053.44 1,319.97 1,110.29 812.13 1,021.68 860.03 3,054.22 73,369.03 (1,921.03) 71,448.00

RESULT
Segment Result before exceptional 2,197.11 1,927.81 65.94 1,223.67 106.10 171.05 199.13 (133.98) (759.43) (121.48) 4,875.92 (47.94) 4,827.98
items 1,321.30 1,967.59 45.34 1,394.34 105.40 448.43 91.98 (115.70) (554.68) (63.18) 4,640.82 (23.83) 4,616.99
Management Discussion

Add/(Less) : Exceptional Items — — — — — — — — — — — — —

allocated to Segments — — — — — — — — — — — — —
Segment Result after exceptional 2,197.11 1,927.81 65.94 1,223.67 106.10 171.05 199.13 (133.98) (759.43) (121.48) 4,875.92 (47.94) 4,827.98
items 1,321.30 1,967.59 45.34 1,394.34 105.40 448.43 91.98 (115.70) (554.68) (63.18) 4,640.82 (23.83) 4,616.99
Corporate

Unallocable Corporate Expenses (net of Income) 374.49

Governance

369.03
Operating Profit 4,453.49
4,247.96
Less : Interest Expense not allocable to segments 505.33
513.72
Add : Interest Income not allocable to segments 285.65
Report

303.56
Add/(Less) : Exceptional Items unallocable to segment 5.03
274.90
Profit before tax 4,238.84
4,312.70
(Add)/Less : Income Taxes – Current Tax 1,879.38
Business Responsibility

1,770.11
– MAT Credit Entitlement (54.42)
(92.72)
– Deferred Tax 38.69
Accounts

42.63
Standalone

Profit for the year before Share of Profit/(Loss) of Associates 2,375.19

2,592.68
Add/(Less) : Share of Profit/(Loss) of Associates for the year 975.93
788.70
Profit for the year before Minority Interest 3,351.12

Mahindra & Mahindra Limited

Accounts

3,381.38
Consolidated

251
 41. Segment Information (Contd.)

252
Rupees crores
Automotive Farm IT Financial Steel Infrastructure Hospitality Systech Two Others Total Eliminations Consolidated
Equipment Services Services Trading and Wheelers Total
Processing

OTHER INFORMATION
Segment Assets 27,309.18 8,969.48 385.08 41,666.58 851.05 3,750.06 3,649.53 1,005.18 1,170.91 2,836.37 91,593.42 — 91,593.42
26,121.04 7,035.17 336.11 36,493.64 757.28 3,133.50 2,446.43 1,041.03 1,098.67 2,247.37 80,710.24 — 80,710.24
Unallocable Corporate Assets 16,629.47
14,133.74

Annual Report 2015-16

Total Assets 108,222.89
94,843.98

Segment Liabilities 13,561.32 3,961.46 82.69 36,317.46 234.73 646.20 2,339.25 253.29 825.22 814.93 59,036.55 — 59,036.55
12,565.95 2,618.99 62.26 31,345.69 204.31 564.74 1,865.71 292.86 585.29 625.10 50,730.90 — 50,730.90

Unallocable Corporate Liabilities 14,239.67

12,364.47

Total Liabilities 73,276.22

63,095.37

Capital Expenditure 3,106.39 383.93 12.43 55.47 35.50 22.77 134.89 64.49 66.85 393.06 4,275.78
3,687.47 358.43 2.44 44.70 56.02 38.01 135.07 54.77 97.31 241.33 4,715.55

Depreciation and Amortisation 1,927.36 280.48 5.72 45.70 19.29 19.40 94.59 38.79 69.51 48.05 2,548.89
Expense 1,563.76 243.70 5.62 45.51 16.45 13.35 66.35 35.05 45.42 52.39 2,087.60
 Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

41. Segment Information (Contd.) :

Secondary Segment Disclosure - Geographical Segment
Rupees crores
Domestic Overseas Total
Revenue From External Customers .............................................................................................. 54,042.74 28,622.94 82,665.68
50,418.86 24,570.37 74,989.23
Segment Assets................................................................................................................................ 70,623.37 20,970.05 91,593.42
63,190.12 17,520.12 80,710.24
Capital Expenditure ........................................................................................................................ 3,095.79 1,179.99 4,275.78
2,980.73 1,734.82 4,715.55

Notes :
1. Business Segments :
The Group has considered business segments as the primary segment for disclosure.
The segments have been identified taking into account the organisational structure as well as the differing risks and returns of these segments.
Automotive Segment comprises of sale of automobiles, spare parts and related services.
Farm Equipment Segment comprises of sale of tractors, spare parts and related services.
IT Services comprise of Business Consulting, Software Implementation and related support activities.
Financial Services comprise of services relating to financing, leasing and hire purchase of automobiles and tractors.
Steel Trading and Processing comprises of trading and processing of steel.
Infrastructure comprise of operating of commercial complexes, project management and development.
Hospitality comprises of sale of Timeshare.
Systech comprises of automotive components and other related products and services.
Two wheelers comprises of sale of two wheelers, spare parts and related services.
Others comprise of Logistics, After-market, Investments etc.

2. Secondary Segments :
The geographical segments are considered for disclosure as secondary segment.
Domestic Segment includes sales to customers located in India and service income accrued in India.
Overseas Segment includes sales and services rendered to customers located outside India.

Segment Revenue comprises of :

Rupees crores
2016 2015
Sale of Products .................................................................................................................................................. 71,078.84 64,648.01
Sale of Services ................................................................................................................................................... 3,357.20 2,255.18
Income from long term contracts .................................................................................................................... 643.15 887.12
Lease and rental income ................................................................................................................................... 48.94 141.83
Interest income of Financial Enterprises Consolidated .................................................................................. 6,426.89 5,906.23
Other allocable income* ................................................................................................................................... 1,110.66 1,150.86
Total ............................................. 82,665.68 74,989.23
Rupees crores
2016 2015
* Other allocable income includes :
Scrap Sales ........................................................................................................................................................... 169.27 211.44
Commission ......................................................................................................................................................... 8.94 10.28
Dividend Income of Investment Enterprises Consolidated ............................................................................ 0.19 0.12
Others .................................................................................................................................................................. 932.26 929.02
Total ............................................. 1,110.66 1,150.86

Mahindra & Mahindra Limited 253

42. Additional information as required by Schedule III to the Companies Act, 2013 (Contd.)
Additional information as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as Subsidiaries / Associates /
Joint Ventures
Rupees crores
Name of the Enterprise Net assets, i.e., total assets minus Share of profit or loss
total liabilities
As % of Amount As % of Amount
consolidated net consolidated
assets profit or loss
PARENT
Mahindra and Mahindra Limited 75.85% 21,707.19 98.64% 3,167.48

SUBSIDIARIES
Mahindra Automobile Distributor Private Limited 0.03% 9.01 0.44% 14.23
Mahindra Heavy Engines Limited 0.76% 217.06 -0.67% (21.47)
Mahindra Vehicle Manufacturers Limited 13.63% 3,899.67 8.67% 278.52
Mahindra Reva Electric Vehicles Limited 0.53% 151.76 -2.85% (91.55)
NBS International Limited -0.01% (2.40) -0.08% (2.42)
Mahindra Trucks and Buses Limited 0.10% 28.87 0.29% 9.32
Mahindra Gujarat Tractor Limited 0.01% 4.27 0.02% 0.74
Swaraj Automotive Limited (upto 1st February 2016) 0.00% – 0.05% 1.62
Mahindra Agri Solutions Limited 0.09% 25.70 0.14% 4.42
EPC Industrie Limited 0.43% 124.02 0.29% 9.18
Mahindra UNIVEG Private Limited 0.03% 8.54 -0.06% (1.89)
Mahindra HZPC Private Limited 0.05% 15.57 0.00% 0.02
Auto Digitech Private Limited 0.00% (0.01) 0.00% *
Mahindra & Mahindra Financial Services Limited 21.27% 6,088.11 20.95% 672.60
Mahindra Rural Housing Finance Limited 0.96% 275.77 1.95% 62.68
Mahindra Insurance Brokers Limited 0.75% 215.73 1.51% 48.49
Mahindra Asset Management Company Private Limited 0.20% 56.04 -0.14% (4.45)
Mahindra Trustee Company Private Limited 0.00% 0.08 0.00% (0.05)
Mahindra Lifespace Developers Limited 4.90% 1,400.94 3.25% 104.49
Mahindra World City (Jaipur) Limited 0.92% 262.74 0.40% 12.86
Mahindra Water Utilities Limited 0.18% 50.18 0.18% 5.66
Mahindra World City Developers Limited 0.42% 119.74 0.09% 2.81
Mahindra Residential Developers Limited 0.32% 92.66 0.14% 4.52
Mahindra Consulting Engineers Limited 0.04% 12.55 0.07% 2.22
Mahindra Bebanco Developers Limited 0.03% 8.35 0.06% 1.92
Anthurium Developers Limited 0.00% 0.10 0.00% 0.05
Industrial Township (Maharashtra) Limited 0.02% 4.86 0.00% *
Knowledge Township Limited 0.07% 20.55 0.00% (0.01)
Industrial Cluster Private Limited 0.00% 0.03 0.00% *
Mahindra Infrastructure Developers Limited 0.01% 1.83 0.00% (0.10)
Mahindra Industrial Park Chennai Limited 0.62% 177.66 -0.04% (1.33)
Mahindra Integrated Township Limited 0.28% 78.75 0.16% 4.99
Mahindra World City (Maharashtra) Limited 0.00% 0.03 0.00% *
Raigad Industrial & Business Park Limited 0.00% – 0.00% –
Bristlecone India Limited 0.21% 61.53 0.67% 21.37
Mahindra Susten Private Limited 0.78% 221.93 0.66% 21.06
Mahindra Renewables Private Limited 0.39% 112.28 0.11% 3.67
Marvel Solren Private Limited 0.00% (0.01) 0.00% (0.02)
Neo Solren Private Limited 0.04% 12.25 -0.02% (0.49)

254 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

42. Additional information as required by Schedule III to the Companies Act, 2013 (Contd.)
Additional information as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as Subsidiaries / Associates /
Joint Ventures
Rupees crores
Name of the Enterprise Net assets, i.e., total assets minus Share of profit or loss
total liabilities
As % of Amount As % of Amount
consolidated net consolidated
assets profit or loss
Astra Solren Private Limited 0.00% – 0.00% (0.01)
Brightsolar Renewable Energy Private Limited 0.07% 20.74 0.02% 0.55
Cleansolar Renewable Energy Private Limited 0.21% 60.01 -0.02% (0.55)
Divine Solren Private Limited 0.05% 14.46 -0.02% (0.72)
Mahindra Engineering and Chemical Products Limited 1.83% 522.52 -4.25% (136.53)
Mahindra Retail Private Limited 0.05% 13.19 -2.90% (93.07)
Retail Initiative Holdings Limited -0.48% (136.95) -4.86% (156.06)
Mahindra Internet Commerce Private Limited 0.00% 1.10 -0.89% (28.69)
Mahindra Logistics Limited 1.06% 303.75 1.16% 37.30
2 x 2 Logistics Private Limited 0.01% 4.04 0.00% (0.07)
Lords Freight (India) Private Limited 0.01% 2.79 -0.04% (1.37)
Mahindra Two Wheelers Limited 0.95% 272.22 -19.16% (615.17)
Mahindra Defence Systems Limited 0.35% 99.04 -0.08% (2.41)
Defence Land Systems India Limited 0.31% 89.01 -0.29% (9.31)
Mahindra Defence Naval Systems Private Limited 0.05% 14.88 -0.05% (1.66)
Mahindra Telephonics Integrated Systems Limited 0.12% 35.27 -0.15% (4.75)
Mahindra Telecommunications Investment Private Limited 0.02% 6.74 0.02% 0.50
Mahindra First Choice Services Limited 0.03% 8.60 -2.09% (67.15)
Mahindra First Choice Wheels Limited 0.25% 72.52 -0.33% (10.58)
Mahindra eMarket Limited 0.00% (0.04) 0.00% (0.04)
Mahindra Namaste Private Limited 0.00% 0.06 -0.07% (2.26)
Mahindra Holdings Limited 0.70% 201.40 -0.04% (1.17)
Mahindra Integrated Business Solutions Private Limited 0.02% 5.86 0.01% 0.44
Mahindra ‘Electoral Trust’ Company 0.00% 0.04 0.00% –
Gateway Housing Company Limited 0.01% 1.89 0.00% 0.09
MachinePulse Tech Private Limited 0.00% – 0.00% –
Orizonte Business Solutions Limited 0.01% 2.68 -0.06% (1.77)
Mahindra Intertrade Limited 1.52% 436.09 1.94% 62.38
Mahindra Electrical Steel Private Limited -0.01% (1.89) 0.01% 0.43
Mahindra Steel Service Centre Limited 0.34% 97.43 0.17% 5.49
Mahindra Auto Steel Private Limited 0.26% 74.83 0.20% 6.54
Mahindra Aerospace Private Limited 1.03% 294.80 -4.36% (140.08)
Mahindra Aerostructures Private Limited 0.11% 30.52 -1.63% (52.27)
Mahindra Sanyo Special Steel Private Limited 0.61% 174.52 -1.62% (52.09)
Mahindra Holidays & Resorts India Limited 2.42% 691.86 3.65% 117.35
Gables Promoters Private Limited 0.17% 49.14 -0.02% (0.49)
Mahindra Hotels and Residences India Limited 0.00% (0.09) 0.00% (0.01)

Foreign
Ssangyong Motor Company ≈ 14.23% 4,073.51 -5.06% (162.44)
Ssangyong European Parts Center B.V. € -0.07% (20.89) 0.02% 0.61
Ssangyong Motor (Shanghai) Company Limited > 0.06% 17.84 -0.42% (13.61)
SY Auto Capital Co., Ltd. ≈ 0.41% 116.74 0.01% 0.34

Mahindra & Mahindra Limited 255

42. Additional information as required by Schedule III to the Companies Act, 2013 (Contd.)
Additional information as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as Subsidiaries / Associates /
Joint Ventures
Rupees crores
Name of the Enterprise Net assets, i.e., total assets minus Share of profit or loss
total liabilities
As % of Amount As % of Amount
consolidated net consolidated
assets profit or loss
Mahindra Automotive Australia Pty. Limited ^ 0.05% 15.43 0.20% 6.36
Mahindra Europe S.r.l. € 0.05% 14.91 0.13% 4.16
Mahindra Graphic Research Design S.r.l. € 0.02% 6.41 0.00% 0.07
Mahindra International UK Ltd. £ 0.04% 10.86 -0.11% (3.42)
Mahindra and Mahindra South Africa (Proprietary) Limited » 0.26% 74.67 0.41% 13.18
Mahindra North American Technical Center, Inc. $ 0.05% 13.50 0.08% 2.69
Mahindra Tractor Assembly Inc. $ 0.01% 2.03 -2.99% (96.12)
Mahindra USA Inc. $ 0.38% 109.78 1.10% 35.43
Mahindra Yueda (Yancheng) Tractor Company Limited > 0.85% 242.14 -4.24% (136.13)
Bristlecone Limited $ 0.15% 43.56 0.32% 10.24
Bristlecone GmbH € 0.07% 20.96 0.27% 8.60
Bristlecone Inc. $ 0.41% 118.35 1.56% 50.10
Bristlecone Consulting Limited @ 0.01% 3.62 0.00% (0.03)
Bristlecone ( Malaysia) Sdn.Bhd. ** 0.02% 5.54 0.09% 2.78
Bristlecone (Singapore) Pte. Limited ++ 0.00% 0.10 0.00% (0.14)
Bristlecone (UK) Limited £ 0.01% 2.99 -0.04% (1.16)
Bristlecone International AG < 0.02% 6.26 0.13% 4.03
Mahindra-BT Investment Company (Mauritius) Limited $ 0.56% 160.58 0.01% 0.40
Mahindra Two Wheelers Europe Holdings S.a.r.l. € 0.39% 111.35 -0.01% (0.35)
Peugeot Motocycles S.A.S. € -0.33% (94.96) -5.82% (186.82)
Peugeot Motocycles Italia S.p.A € 0.01% 1.93 0.00% 0.13
Peugeot Motocycles Deutschland GmbH € 0.01% 1.80 0.02% 0.75
Mahindra Emirates Vehicle Armouring FZ-LLC • 0.06% 17.41 0.23% 7.36
Mahindra Overseas Investment Company (Mauritius) Limited $ 1.91% 545.42 -0.15% (4.92)
Mahindra Racing S.p.A. € 0.02% 5.41 0.00% 0.01
Mahindra Racing UK Limited £ 0.00% (0.04) 0.00% (0.15)
Mahindra MiddleEast Electrical Steel Service Centre (FZC) • 0.11% 31.47 0.01% 0.37
Aerostaff Australia Pty. Limited ^ -0.01% (2.86) -0.03% (1.06)
Airvan Flight Services Pty. Limited ^ 0.00% (0.02) 0.00% (0.02)
Airvan10 Pty. Limited ^ 0.00% (0.02) 0.00% (0.02)
Gipp Aero Investments Pty. Limited ^ 0.33% 94.91 -3.01% (96.78)
GA8 Airvan Pty. Limited ^ 0.00% (0.02) 0.00% (0.02)
GA200 Pty. Limited ^ 0.00% (0.02) 0.00% (0.02)
Gippsaero Pty. Limited ^ -0.13% (38.58) -2.17% (69.59)
Mahindra Aerospace Australia Pty. Limited ^ 0.33% 93.90 -4.20% (134.73)
Nomad TC Pty. Limited ^ 0.00% (0.03) 0.00% (0.03)
Convington S.a.r.l. € 0.58% 167.29 -0.18% (5.76)
HCR Management Oy € 0.01% 4.21 -0.01% (0.18)
Infinity Hospitality Group Company Limited # 0.03% 7.92 0.00% 0.09
MH Boutique Hospitality Limited # 0.00% 0.17 -0.02% (0.51)
Heritage Bird (M) Sdn. Bhd. ** 0.00% (0.79) 0.00% (0.14)
MHR Holdings (Mauritius) Limited € -0.03% (8.10) -0.25% (7.99)
Holiday Club Resorts Oy € 1.44% 411.40 -0.87% (27.80)

256 Annual Report 2015-16

Company Board’s Management Discussion Corporate Business Responsibility Standalone Consolidated
Overview Report and Analysis Governance Report Accounts Accounts

42. Additional information as required by Schedule III to the Companies Act, 2013 (Contd.)
Additional information as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as Subsidiaries / Associates /
Joint Ventures
Rupees crores
Name of the Enterprise Net assets, i.e., total assets minus Share of profit or loss
total liabilities
As % of Amount As % of Amount
consolidated net consolidated
assets profit or loss
Holiday Club Sweden Ab Åre << 0.40% 113.25 -0.21% (6.77)
Kiinteistö Oy Himos Gardens € 0.03% 7.96 0.00% 0.10
Holiday Club Rus LLC >> -0.03% (7.73) -0.08% (2.46)
Suomen Vapaa-aikakiinteistöt Oy LKV << 0.00% 0.15 0.00% (0.01)
Kiinteistö Himoksen Tähti 2 Oy € 0.02% 5.02 0.00% (0.06)
Kiinteistö Oy Vanha Ykköstii € 0.00% 0.39 0.00% (0.01)
Kiinteistö Oy Katinnurkka € 0.01% 2.32 0.00% (0.01)
Kiinteistö Oy Tenetinlahti € 0.00% 0.82 0.00% (0.01)
Kiinteistö Oy Mällösniemi € 0.01% 2.25 -0.13% (4.06)
Kiinteistö Oy Rauhan Ranta 1 € 0.00% 0.94 0.00% (0.03)
Kiinteistö Oy Rauhan Ranta 2 € 0.01% 1.55 0.00% (0.05)
Kiinteistö Oy Tiurunniemi € 0.01% 2.73 -0.14% (4.38)
Kiinteistö Oy Rauhan Liikekiinteistöt 1 € 0.05% 14.65 -0.05% (1.65)
Supermarket Capri Oy € 0.00% 0.88 -0.02% (0.59)
Kiinteistö Oy Kylpyläntorni 1 € 0.01% 1.89 0.00% 0.01
Kiinteistö Oy Spa Lofts 2 € 0.00% 1.09 0.00% (0.02)
Kiinteistö Oy Spa Lofts 3 € 0.00% 1.07 0.00% (0.03)
Kiinteistö Oy Kuusamon Pulkkajärvi 1 € 0.01% 2.05 0.00% 0.05
Saimaa Gardens Arena Oy € 0.00% 0.02 0.00% *
Ownership Services Ab << 0.01% 1.69 0.00% (0.04)
Holiday Club Canarias Investments S.L. € 0.00% – 0.00% (0.01)
Holiday Club Sport and Spa AB << 0.04% 12.06 0.04% 1.43
Holiday Club Canarias Sales & Marketing S.L. € 0.10% 28.89 -0.04% (1.37)
Holiday Club Canarias Resort Management S.L. € 0.07% 20.64 0.06% 2.05
Kiinteistö Oy Tunturinrivi € 0.00% 0.86 0.00% (0.04)
Caribia Service Oy € 0.00% 0.03 0.00% (0.01)
Are Semesterby A << 0.00% 0.07 0.00% *
Are Semesterby B << 0.00% 0.07 0.00% *
Are Semesterby C << 0.00% 0.07 0.00% *
Are Semesterby D << 0.00% 0.07 0.00% *
Are Villas 1 Ab << 0.01% 1.46 0.03% 0.95
Are Villas 2 Ab << 0.00% 1.21 0.03% 0.95

Associates (Investment as per the equity method)

Indian
Mahindra Construction Company Limited 0.00% – 0.00% –
Officemartindia.com Limited 0.00% – 0.00% –
Rathna Bhoomi Enterprises Private Limited 0.00% – 0.00% –
Kota Farm Services Limited 0.00% – 0.00% –
Mega One Stop Farm Services Limited (Up to 24th November, 2015) 0.00% – 0.00% –
Swaraj Engines Limited 0.22% 62.38 0.53% 17.01
Mahindra & Mahindra Contech Limited 0.02% 4.37 0.01% 0.34
PSL Media & Communications Limited 0.00% – 0.00% –

Mahindra & Mahindra Limited 257

 42. Additional information as required by Schedule III to the Companies Act, 2013 (Contd.)
Additional information as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as Subsidiaries / Associates /
Joint Ventures
Rupees crores
Name of the Enterprise Net assets, i.e., total assets minus Share of profit or loss
total liabilities
As % of Amount As % of Amount
consolidated net consolidated
assets profit or loss
Tech Mahindra Limited 16.23% 4,645.60 25.74% 826.65
Kismat Developers Private Limited 0.00% – 0.00% –
Topical Builders Private Limited 0.00% – 0.00% –
Mahindra Tsubaki Conveyor Systems Private Limited 0.10% 29.33 0.03% 0.85
Mahindra CIE Automotive Limited 1.93% 552.63 0.88% 28.40

Foreign
CIE Automotive, S.A. € 3.20% 917.10 3.57% 114.66
Holiday Club Resort Oy € (up to 1st September, 2015) 0.00% – -0.35% (11.19)
Koy Sallan Kylpyla € 0.00% – 0.00% –
Kiinteistö Oy Seniori-Saimaa € 0.01% 2.87 0.00% –
Holiday Club Adventures Oy € 0.00% 0.01 0.00% –

Joint Ventures (as per proportionate consolidation)

Indian
Mahindra Sona Limited 0.16% 46.40 0.27% 8.71
Mahindra Water Utilities Limited (up to 26th July, 2015) 0.00% – 0.00% –
Mahindra Inframan Water Utilities Private Limited 0.00% 0.04 0.00% (0.01)
Mahindra Solar One Private Limited 0.10% 28.36 0.02% 0.60
Mahindra Homes Private Limited -0.01% (3.18) 0.10% 3.31

Foreign
Mahindra Finance USA LLC $ 0.80% 229.64 0.57% 18.39
Arabian Dreams Hotel Apartments LLC • -0.01% (3.72) 0.00% (0.07)
Jinan Qingqi Peugeot Motorcycles Co. Limited > 0.16% 46.48 0.15% 4.72
Mitsubishi Mahindra Agricultural Machinery Co., Ltd § 1.83% 523.15 -0.55% (17.63)

Minority Interest -22.11% (6,327.03) -4.36% (139.86)

Inter Company Adjustments -61.73% (17,668.21) -0.29% (9.24)
Total 100.00% 28,619.64 100.00% 3,211.26
* denotes amounts less than Rs. 50,000.
# Converted into Indian Rupees at the exchange rate, 1THB = Rs. 1.89 as on 31st March, 2016
$ Converted into Indian Rupees at the exchange rate, 1USD = Rs. 66.35 as on 31st March, 2016
• Converted into Indian Rupees at the exchange rate, 1 AED = Rs. 18.03 as on 31st March, 2016
** Converted into Indian Rupees at the exchange rate, 1MYR = Rs. 17.09 as on 31st March, 2016
@ Converted into Indian Rupees at the exchange rate, 1CAD = Rs. 50.96 as on 31st March, 2016
^ Converted into Indian Rupees at the exchange rate, 1AUD = Rs. 49.10 as on 31st March, 2016
£ Converted into Indian Rupees at the exchange rate, 1GBP = Rs. 95.21 as on 31st March, 2016
€ Converted into Indian Rupees at the exchange rate, 1EUR = Rs. 74.97 as on 31st March, 2016
++ Converted into Indian Rupees at the exchange rate, 1SGD = Rs. 49.10 as on 31st March, 2016
< Converted into Indian Rupees at the exchange rate, 1CHF = Rs. 68.67 as on 31st March, 2016
> Converted into Indian Rupees at the exchange rate, 1CNY = Rs. 10.27 as on 31st March, 2016
» Converted into Indian Rupees at the exchange rate, 1ZAR = Rs. 4.44 as on 31st March, 2016
≈ Converted into Indian Rupees at the exchange rate, 1KRW = Rs. 0.0582 as on 31st March, 2016
§ Converted into Indian Rupees at the exchange rate, 1 JPY = Rs. 0.5904 as on 31st March, 2016
>> Converted into Indian Rupees at the exchange rate, 1 RUB = Rs. 0.98 as on 31st March, 2016
<< Converted into Indian Rupees at the exchange rate, 1 SEK = Rs. 8.17 as on 31st March, 2016
43. Previous years figures have been regrouped/restated where ever necessary.

258 Annual Report 2015-16

 FORM AOC-1
Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014
Statement Containing salient features of the financial statements of subsidiaries/associate companies/joint ventures as included in the Consolidated Financial Statements
Overview
Company

Part “A” : Subsidiaries (Contd.) Rupees Crores

Sr. Name of Subsidiary Reporting Exchange Capital Reserves Total Total Investments Gross Profit/ Provision Profit/ Proposed Proportion Proportion
No. Currency Rate (including & Surplus Assets Liabilities (excluding Turnover (Loss) for Tax (Loss) Dividend of of voting
Preference investments before after and Tax ownership power
Capital) in Tax Tax thereon interest @ where
subsidiaries) different
Report
Board’s

1 Mahindra Automobile
Distributor Private Limited INR 1.00 1.00 8.01 33.90 24.89 4.98 84.24 21.66 7.43 14.23 14.20 95.00%
2 Mahindra Heavy Engines
Limited INR 1.00 548.40 (331.34) 490.38 273.32 – 441.02 (21.47) – (21.47) – 100.00%
3 Mahindra Vehicle
Manufacturers Limited INR 1.00 3,162.25 737.42 8,297.33 4,397.66 1,711.97 9,121.83 432.69 154.17 278.52 99.40 100.00%
4 Mahindra Reva Electric
Vehicles Limited INR 1.00 138.55 13.21 273.47 121.71 8.69 67.83 (91.55) – (91.55) – 93.70%
5 NBS International Limited INR 1.00 9.55 (11.95) 37.12 39.52 – 188.86 (2.42) – (2.42) – 100.00%
6 Mahindra Trucks and Buses
and Analysis

Limited INR 1.00 22.96 5.91 63.89 35.02 5.50 117.88 13.82 4.50 9.32 6.91 100.00%
7 Mahindra Automotive Australia
Pty. Limited AUD 49.10 22.46 (7.03) 61.38 45.95 – 110.35 4.94 (1.42) 6.36 – 100.00%
8 Mahindra Europe S.r.l. EUR 74.97 10.65 4.26 68.59 53.68 – 119.78 3.01 (1.15) 4.16 – 100.00%
9 Mahindra Graphic Research
Management Discussion

Design S.r.l. EUR 74.97 7.20 (0.79) 16.73 10.32 – 31.26 0.42 0.35 0.07 – 100.00%
10 Mahindra International
UK Ltd*** GBP 95.21 14.28 (3.42) 13.26 2.40 – – (3.42) – (3.42) – 100.00%
11 Mahindra and Mahindra South
Africa (Proprietary) Limited ZAR 4.44 23.09 51.58 165.82 91.15 – 319.37 20.81 7.63 13.18 – 100.00%
Corporate

12 Mahindra North American

Governance

Technical Center, Inc. USD 66.35 * 13.50 13.90 0.40 – 0.64 (0.09) (2.78) 2.69 – 100.00%
13 Mahindra Tractor Assembly Inc. USD 66.35 103.56 (101.53) 78.82 76.79 – 5.11 (95.89) 0.23 (96.12) – 100.00%
14 Ssangyong Motor Company# KRW 0.0582 3,972.36 101.15 11,312.87 7,239.36 – 20,080.83 (162.44) – (162.44) – 73.23%
15 Ssangyong European Parts
Center B.V.# EUR 74.97 5.25 (26.14) 51.37 72.26 – 92.66 0.73 0.12 0.61 – 73.23% 100.00%
16 Ssangyong Motor (Shanghai)
Report

Company Limited# CNY 10.27 30.80 (12.96) 22.62 4.78 – 5.49 (13.54) 0.07 (13.61) – 73.23% 100.00%
17 SY Auto Capital Co., Ltd.# KRW 0.0582 116.40 0.34 256.24 139.50 – 36.99 1.51 1.17 0.34 – 37.35% 51.00%
18 Mahindra Gujarat Tractor
Limited INR 1.00 20.30 (16.03) 63.68 59.41 – 92.95 1.54 0.80 0.74 – 60.00%
19 Mahindra Agri Solutions
Limited INR 1.00 13.41 12.29 100.95 75.25 – 153.98 6.76 2.34 4.42 – 100.00%
Business Responsibility

20 EPC Industrie Limited INR 1.00 27.66 96.36 168.85 44.83 – 207.35 10.94 1.76 9.18 – 54.76%
21 Mahindra UNIVEG Private
Limited INR 1.00 5.55 2.99 19.07 10.53 – 46.58 (1.89) – (1.89) – 60.00%
22 Mahindra HZPC Private
Limited INR 1.00 7.89 7.68 26.53 10.96 – 22.22 0.02 – 0.02 – 59.95%
Accounts

23 Auto Digitech Private Limited INR 1.00 0.01 (0.02) * 0.01 – * – * – – 100.00%
Standalone

24 Mahindra USA Inc. USD 66.35 92.89 16.89 1,349.28 1,239.50 – 3,345.31 41.39 5.96 35.43 1.86 100.00%
25 Mahindra Yueda (Yancheng)
Tractor Company Limited# CNY 10.27 527.88 (285.74) 878.22 636.08 – 520.62 (136.13) – (136.13) – 51.00%
26 Mahindra & Mahindra
Financial Services Limited INR 1.00 112.92 5,975.19 39,579.48 33,491.37 1,296.39 5,905.10 1,038.18 365.58 672.60 271.27 51.58%
27 Mahindra Rural Housing

Mahindra & Mahindra Limited

Accounts

Finance Limited INR 1.00 75.73 200.04 3,301.24 3,025.47 – 495.45 96.70 34.02 62.68 – 45.13% 87.50%
Consolidated

28 Mahindra Insurance Brokers

Limited INR 1.00 2.58 213.15 239.39 23.66 133.90 149.20 75.20 26.71 48.49 4.65 43.84% 85.00%

259
 Part “A” : Subsidiaries (Contd.) Rupees Crores

260
Sr. Name of Subsidiary Reporting Exchange Capital Reserves Total Total Investments Gross Profit/ Provision Profit/ Proposed Proportion Proportion
No. Currency Rate (including & Surplus Assets Liabilities (excluding Turnover (Loss) for Tax (Loss) Dividend of of voting
Preference investments before after and Tax ownership power
Capital) in Tax Tax thereon interest @ where
subsidiaries) different
29 Mahindra Asset Management
Company Private Limited** INR 1.00 60.55 (4.51) 57.23 1.19 55.70 1.20 (4.45) – (4.45) – 51.58% 100.00%
30 Mahindra Trustee Company
Private Limited** INR 1.00 0.15 (0.07) 0.09 0.01 – – (0.05) – (0.05) – 51.58% 100.00%
31 Mahindra Lifespace
Developers Limited INR 1.00 41.03 1,359.91 2,572.06 1,171.12 524.16 600.16 141.74 37.25 104.49 27.99 50.80%

Annual Report 2015-16

32 Mahindra World City (Jaipur)
Limited INR 1.00 200.00 62.74 671.02 408.28 4.22 86.76 20.44 7.58 12.86 10.23 37.59% 74.00%
33 Mahindra Water Utilities
Limited INR 1.00 0.10 50.08 56.20 6.02 0.03 18.95 8.70 3.04 5.66 – 50.29% 99.00%
34 Mahindra World City
Developers Limited INR 1.00 20.00 99.74 560.12 440.38 – 213.55 4.86 2.05 2.81 – 45.21% 89.00%
35 Mahindra Residential
Developers Limited INR 1.00 0.26 92.40 134.49 41.83 – 33.83 5.66 1.14 4.52 – 48.92% 100.00%
36 Mahindra Consulting
Engineers Limited INR 1.00 1.95 10.60 17.45 4.90 – 25.39 3.32 1.10 2.22 0.59 59.01%
37 Mahindra Bebanco
Developers Limited INR 1.00 0.05 8.30 150.18 141.83 – 57.21 2.87 0.95 1.92 – 35.56% 70.00%
38 Anthurium Developers Limited INR 1.00 0.05 0.05 2.40 2.30 – 0.08 0.07 0.02 0.05 – 50.80% 100.00%
39 Industrial Township
(Maharashtra) Limited INR 1.00 5.00 (0.14) 5.17 0.31 – 0.01 * – * – 50.80% 100.00%
40 Knowledge Township Limited INR 1.00 21.00 (0.45) 44.95 24.40 – – (0.01) – (0.01) – 50.80% 100.00%
41 Industrial Cluster Private Limited INR 1.00 0.05 (0.02) 0.04 0.01 – – * – * – 50.80% 100.00%
42 Mahindra Infrastructure
Developers Limited INR 1.00 18.00 (16.17) 3.11 1.28 0.03 0.04 (0.10) – (0.10) – 50.80% 100.00%
43 Mahindra Industrial Park
Chennai Limited INR 1.00 170.00 7.66 235.25 57.59 – – (1.33) – (1.33) – 27.13% 60.00%
44 Mahindra Integrated
Township Limited INR 1.00 50.44 28.31 223.51 144.76 – 58.29 6.43 1.44 4.99 – 48.92% 99.14%
45 Mahindra World City
(Maharashtra) Limited INR 1.00 1.17 (1.14) 0.04 0.01 – * * – * – 50.80% 100.00%
46 Raigad Industrial & Business
Park Limited INR 1.00 0.11 (0.11) 0.06 0.06 – – – – – – 50.80% 100.00%
47 Bristlecone India Limited INR 1.00 19.05 42.48 98.54 37.01 – 222.14 35.06 13.69 21.37 – 76.87% 100.00%
48 Bristlecone Limited USD 66.35 0.16 43.40 212.83 169.27 – 29.26 10.24 – 10.24 – 76.87%
49 Bristlecone GmbH EUR 74.97 0.37 20.59 32.39 11.43 – 87.14 11.79 3.19 8.60 – 76.87% 100.00%
50 Bristlecone Inc. USD 66.35 45.45 72.90 168.07 49.72 – 258.41 19.68 (30.42) 50.10 – 76.87% 100.00%
51 Bristlecone Consulting Limited CAD 50.96 – 3.62 3.67 0.05 – – (0.04) (0.01) (0.03) – 76.87% 100.00%
52 Bristlecone ( Malaysia) Sdn.Bhd. MYR 17.09 0.17 5.37 9.96 4.42 – 18.77 3.73 0.95 2.78 – 76.87% 100.00%
53 Bristlecone (Singapore) Pte.
Limited SGD 49.10 8.20 (8.10) 0.12 0.02 – 0.17 (0.14) – (0.14) – 76.87% 100.00%
54 Bristlecone (UK) Limited GBP 95.21 22.37 (19.38) 3.29 0.30 – * (1.16) – (1.16) – 76.87% 100.00%
55 Bristlecone International AG CHF 68.67 0.34 5.92 14.75 8.49 – 21.29 4.05 0.02 4.03 – 76.87% 100.00%
56 Mahindra-BT Investment
Company (Mauritius) Limited USD 66.35 78.82 81.76 160.64 0.06 11.54 0.94 0.40 – 0.40 – 57.00%
57 Mahindra Susten Private Limited INR 1.00 70.27 151.66 530.97 309.04 1.18 1,009.67 32.50 11.44 21.06 – 100.00%
58 Mahindra Renewables Private
Limited INR 1.00 108.91 3.37 112.85 0.57 12.30 6.06 3.67 – 3.67 – 100.00%
59 Marvel Solren Private Limited INR 1.00 0.01 (0.02) * 0.01 – – (0.02) – (0.02) – 100.00%
60 Neo Solren Private Limited INR 1.00 1.86 10.39 12.27 0.02 12.00 0.13 (0.49) – (0.49) – 100.00%
61 Astra Solren Private Limited INR 1.00 0.01 (0.01) 0.01 0.01 – – (0.01) – (0.01) – 100.00%
 Part “A” : Subsidiaries (Contd.) Rupees Crores
Sr. Name of Subsidiary Reporting Exchange Capital Reserves Total Total Investments Gross Profit/ Provision Profit/ Proposed Proportion Proportion
No. Currency Rate (including & Surplus Assets Liabilities (excluding Turnover (Loss) for Tax (Loss) Dividend of of voting
Overview
Company

Preference investments before after and Tax ownership power

Capital) in Tax Tax thereon interest @ where
subsidiaries) different
62 Brightsolar Renewable Energy
Private Limited INR 1.00 9.52 11.22 87.90 67.16 – 3.30 0.61 0.06 0.55 – 51.00%
63 Cleansolar Renewable Energy
Private Limited INR 1.00 9.62 50.39 219.33 159.32 1.50 1.02 (0.54) 0.01 (0.55) – 100.00%
Report
Board’s

64 Divine Solren Private Limited INR 1.00 2.42 12.04 17.67 3.21 1.40 0.02 (0.72) – (0.72) – 100.00%
65 Mahindra Engineering and
Chemical Products Limited INR 1.00 65.30 457.22 524.08 1.56 23.43 2.49 (136.08) 0.45 (136.53) – 100.00%
66 Mahindra Retail Private Limited INR 1.00 688.46 (675.27) 142.85 129.66 – 203.97 (93.07) – (93.07) – 98.96%
67 Retail Initiative Holdings Limited INR 1.00 20.55 (157.50) 357.51 494.46 – – (156.06) – (156.06) – 100.00%
68 Mahindra Internet Commerce
Private Limited INR 1.00 33.00 (31.90) 20.36 19.26 – 25.22 (28.69) – (28.69) – 98.96% 100.00%
69 Mahindra Logistics Limited INR 1.00 100.71 203.04 556.23 252.48 68.04 2,027.35 56.87 19.57 37.30 – 84.01%
70 Lords Freight (India) Private Limited INR 1.00 2.36 0.43 15.60 12.81 0.01 75.02 (1.45) (0.08) (1.37) – 50.41% 60.00%
and Analysis

71 2 x 2 Logistics Private Limited INR 1.00 4.01 0.03 30.04 26.00 – 16.00 (0.10) (0.03) (0.07) – 46.20% 55.00%
72 Mahindra Two Wheelers
Limited INR 1.00 2,658.39 (2,386.17) 758.29 486.07 – 704.18 (615.17) – (615.17) – 91.26%
73 Peugeot Motocycles S.A.S.# EUR 74.97 73.54 (168.50) 411.60 506.56 – 707.00 (186.82) – (186.82) – 46.54% 51.00%
74 Peugeot Motocycles Italia S.p.A.# EUR 74.97 1.98 (0.05) 40.04 38.11 – 54.12 0.13 – 0.13 – 46.54% 100.00%
Management Discussion

75 Peugeot Motocycles
Deutschland GmbH# EUR 74.97 0.19 1.61 11.88 10.08 – 121.02 0.75 – 0.75 – 46.54% 100.00%
76 Mahindra Two Wheelers
Europe Holdings S.a.r.l. EUR 74.97 111.71 (0.36) 195.96 84.61 – – (0.35) – (0.35) – 91.26% 100.00%
77 Mahindra Defence Systems Limited INR 1.00 8.46 90.58 124.68 25.64 45.90 40.11 (3.51) (1.10) (2.41) – 100.00%
Corporate

78 Defence Land Systems India

Governance

Limited INR 1.00 179.00 (89.99) 105.63 16.62 – 23.40 (9.31) – (9.31) – 100.00%
79 Mahindra Defence Naval
Systems Private Limited INR 1.00 15.03 (0.15) 21.36 6.48 – 9.08 (2.46) (0.80) (1.66) – 100.00%
80 Mahindra Telephonics
Integrated Systems Limited INR 1.00 50.78 (15.51) 38.16 2.89 – 5.39 (4.75) – (4.75) – 51.00%
81 Mahindra Telecommunications
Investment Private Limited INR 1.00 0.47 6.27 6.86 0.12 – 0.70 0.66 0.16 0.50 – 100.00%
Report

82 Mahindra Emirates Vehicle

Armouring FZ-LLC AED 18.03 18.03 (0.62) 33.39 15.98 – 47.82 7.36 – 7.36 – 51.00%
83 Mahindra First Choice Services
Limited INR 1.00 234.30 (225.70) 39.01 30.41 – 60.60 (67.15) – (67.15) – 100.00%
84 Mahindra First Choice Wheels
Limited INR 1.00 73.84 (1.32) 113.60 41.08 7.01 62.44 (10.58) – (10.58) – 45.50%
Business Responsibility

85 Mahindra eMarket Limited INR 1.00 0.80 (0.84) 0.10 0.14 – – (0.04) – (0.04) – 69.00%
86 Mahindra Namaste Private
Limited INR 1.00 9.01 (8.95) 0.22 0.16 – 1.87 (2.26) – (2.26) – 59.01% 100.00%
87 Mahindra Holdings Limited INR 1.00 179.19 22.21 201.59 0.19 46.16 2.87 (1.17) – (1.17) – 100.00%
Accounts

88 Mahindra Overseas Investment

Standalone

Company (Mauritius) Limited USD 66.35 766.26 (220.84) 1,523.29 977.87 1,259.33 27.91 (4.92) – (4.92) – 100.00%
89 Mahindra Integrated Business
Solutions Private Limited INR 1.00 1.50 4.36 10.91 5.05 2.69 15.01 1.13 0.69 0.44 0.24 100.00%
90 Mahindra Racing S.p.A. EUR 74.97 6.01 (0.60) 14.13 8.72 – 42.54 0.40 0.39 0.01 – 100.00%
91 Mahindra Racing UK Limited GBP 95.21 0.19 (0.23) 13.13 13.17 – 56.30 0.07 0.22 (0.15) – 100.00%
92 Mahindra ‘Electoral Trust’

Mahindra & Mahindra Limited

Accounts

Company INR 1.00 0.05 (0.01) 0.04 * – – – – – – 100.00%

93 Gateway Housing Company
Consolidated

Limited INR 1.00 1.76 0.13 1.94 0.05 – 0.14 0.13 0.04 0.09 – 100.00%

261
 Part “A” : Subsidiaries (Contd.) Rupees Crores

262
Sr. Name of Subsidiary Reporting Exchange Capital Reserves Total Total Investments Gross Profit/ Provision Profit/ Proposed Proportion Proportion
No. Currency Rate (including & Surplus Assets Liabilities (excluding Turnover (Loss) for Tax (Loss) Dividend of of voting
Preference investments before after and Tax ownership power
Capital) in Tax Tax thereon interest @ where
subsidiaries) different
94 MachinePulse Tech Private
Limited** ^ INR 1.00 – – – – – – – – – – 100.00%
95 Orizonte Business Solutions
Limited INR 1.00 5.78 (3.10) 4.84 2.16 – 0.59 (1.77) – (1.77) – 100.00%
96 Mahindra Intertrade Limited INR 1.00 16.60 419.49 604.37 168.28 35.57 1,110.17 95.02 32.64 62.38 23.98 100.00%
97 Mahindra Electrical Steel

Annual Report 2015-16

Private Limited** INR 1.00 0.05 (1.94) 7.40 9.29 – 0.75 0.53 0.10 0.43 – 100.00%
98 Mahindra Steel Service Centre
Limited INR 1.00 16.54 80.89 215.71 118.28 – 215.71 8.12 2.63 5.49 1.39 61.00%
99 Mahindra MiddleEast Electrical
Steel Service Centre (FZC) AED 18.03 3.64 27.83 47.11 15.64 – 37.57 0.37 – 0.37 – 90.00%
100 Mahindra Auto Steel Private
Limited INR 1.00 68.50 6.33 134.77 59.94 0.47 69.67 6.00 (0.54) 6.54 0.41 51.00%
101 Mahindra Aerospace Private
Limited INR 1.00 235.29 59.51 297.29 2.49 3.74 3.03 (139.87) 0.21 (140.08) – 66.67%
102 Mahindra Aerostructures
Private Limited INR 1.00 160.36 (129.84) 187.20 156.68 – 7.64 (52.27) – (52.27) – 66.67% 100.00%
103 Aerostaff Australia Pty. Limited AUD 49.10 24.30 (27.16) 4.55 7.41 – 9.78 (1.06) – (1.06) – 50.07% 100.00%
104 Airvan Flight Services Pty.
Limited AUD 49.10 * (0.02) * 0.02 – – (0.02) – (0.02) – 50.07% 100.00%
105 Airvan10 Pty. Limited AUD 49.10 * (0.02) * 0.02 – – (0.02) – (0.02) – 50.07% 100.00%
106 Gipp Aero Investments Pty.
Limited AUD 49.10 34.45 60.46 94.99 0.08 – – (96.78) – (96.78) – 50.07% 75.10%
107 GA8 Airvan Pty. Limited AUD 49.10 * (0.02) * 0.02 – – (0.02) – (0.02) – 50.07% 100.00%
108 GA200 Pty. Limited AUD 49.10 * (0.02) * 0.02 – – (0.02) – (0.02) – 50.07% 100.00%
109 Gippsaero Pty. Limited AUD 49.10 167.19 (205.77) 224.34 262.92 – 48.97 (69.59) – (69.59) – 50.07% 100.00%
110 Mahindra Aerospace Australia
Pty. Limited AUD 49.10 223.59 (129.69) 215.69 121.79 – 5.08 (134.73) – (134.73) – 66.67% 100.00%
111 Nomad TC Pty. Limited AUD 49.10 0.05 (0.08) * 0.03 – – (0.03) – (0.03) – 50.07% 100.00%
112 Mahindra Sanyo Special Steel
Private Limited INR 1.00 10.85 163.67 583.90 409.38 14.00 852.11 (52.09) – (52.09) – 51.00%
113 Mahindra Holidays & Resorts
India Limited INR 1.00 88.06 603.80 2,900.53 2,208.67 58.43 962.61 172.09 54.74 117.35 53.43 75.62%
114 Gables Promoters Private Limited** INR 1.00 49.68 (0.54) 57.05 7.91 – * (0.49) – (0.49) – 75.62% 100.00%
115 Infinity Hospitality Group
Company Limited# THB 1.89 28.35 (20.43) 40.01 32.09 0.08 8.21 0.09 – 0.09 – 55.94% 100.00%
116 Mahindra Hotels and
Residences India Limited INR 1.00 0.05 (0.14) * 0.09 – – (0.01) – (0.01) – 75.62% 100.00%
117 Convington S.a.r.l. EUR 74.97 0.09 167.20 401.05 233.76 – – (5.76) – (5.76) – 75.62% 100.00%
118 MH Boutique Hospitality
Limited THB 1.89 1.89 (1.72) 7.19 7.02 – * (0.51) – (0.51) – 37.05% 49.00%
119 Heritage Bird (M) Sdn. Bhd. MYR 17.09 0.51 (1.30) 7.39 8.18 – 1.55 (0.13) 0.01 (0.14) – 75.62% 100.00%
120 MHR Holdings (Mauritius)
Limited EUR 74.97 1.09 (9.19) 330.27 338.37 – 3.26 (7.99) – (7.99) – 75.62% 100.00%
121 HCR Management Oy EUR 74.97 0.02 4.19 15.71 11.50 – – (0.18) – (0.18) – 75.62% 100.00%
122 Holiday Club Resorts Oy EUR 74.97 89.66 321.74 896.60 485.20 2.59 1,239.55 (27.83) (0.03) (27.80) 7.13 64.73% 85.61%
123 Holiday Club Sweden Ab Åre SEK 8.17 0.08 113.17 222.16 108.91 – 50.65 (6.77) – (6.77) 0.11 64.73% 100.00%
124 Kiinteistö Oy Himos Gardens EUR 74.97 0.02 7.94 7.97 0.01 – – 0.12 0.02 0.10 – 64.73% 100.00%
125 Holiday Club Rus LLC# RUB 0.98 0.03 (7.76) 4.07 11.80 – 0.91 (3.04) (0.58) (2.46) – 64.73% 100.00%
126 Suomen Vapaa-aikakiinteistöt
Oy LKV SEK 8.17 0.02 0.13 0.15 – – – (0.01) – (0.01) – 64.73% 100.00%
 Part “A” : Subsidiaries (Contd.) Rupees Crores
Sr. Name of Subsidiary Reporting Exchange Capital Reserves Total Total Investments Gross Profit/ Provision Profit/ Proposed Proportion Proportion
No. Currency Rate (including & Surplus Assets Liabilities (excluding Turnover (Loss) for Tax (Loss) Dividend of of voting
Overview
Company

Preference investments before after and Tax ownership power

Capital) in Tax Tax thereon interest @ where
subsidiaries) different
127 Kiinteistö Himoksen Tähti 2 Oy EUR 74.97 0.02 5.00 5.03 0.01 – – (0.06) – (0.06) – 64.73% 100.00%
128 Kiinteistö Oy Vanha Ykköstii EUR 74.97 0.02 0.37 0.39 – – – (0.01) – (0.01) – 64.73% 100.00%
129 Kiinteistö Oy Katinnurkka EUR 74.97 0.02 2.30 2.32 – – – (0.01) – (0.01) – 64.73% 100.00%
130 Kiinteistö Oy Tenetinlahti EUR 74.97 0.02 0.80 0.82 * – – (0.01) – (0.01) – 64.73% 100.00%
Report
Board’s

131 Kiinteistö Oy Mällösniemi EUR 74.97 0.07 2.18 2.26 0.01 – 0.06 (4.06) – (4.06) – 64.73% 100.00%
132 Kiinteistö Oy Rauhan Ranta 1 EUR 74.97 0.02 0.92 0.95 0.01 – – (0.03) – (0.03) – 64.73% 100.00%
133 Kiinteistö Oy Rauhan Ranta 2 EUR 74.97 0.02 1.53 1.57 0.02 – – (0.05) – (0.05) – 64.73% 100.00%
134 Kiinteistö Oy Tiurunniemi EUR 74.97 0.02 2.71 2.73 * – – (4.38) – (4.38) – 64.73% 100.00%
135 Kiinteistö Oy Rauhan
Liikekiinteistöt 1 EUR 74.97 0.02 14.63 77.01 62.36 – 9.83 (1.65) – (1.65) – 64.73% 100.00%
136 Supermarket Capri Oy EUR 74.97 0.75 0.13 1.18 0.30 – 5.51 (0.59) – (0.59) – 64.73% 100.00%
137 Kiinteistö Oy Kylpyläntorni 1 EUR 74.97 0.02 1.87 1.89 * – 0.02 0.01 – 0.01 – 64.73% 100.00%
138 Kiinteistö Oy Spa Lofts 2 EUR 74.97 0.02 1.07 1.10 0.01 – – (0.02) – (0.02) – 64.73% 100.00%
and Analysis

139 Kiinteistö Oy Spa Lofts 3 EUR 74.97 0.02 1.05 1.08 0.01 – – (0.03) – (0.03) – 64.73% 100.00%
140 Kiinteistö Oy Kuusamon
Pulkkajärvi 1 EUR 74.97 0.02 2.03 2.73 0.68 – 0.17 0.06 0.01 0.05 – 64.73% 100.00%
141 Saimaa Gardens Arena Oy EUR 74.97 0.02 * 1.38 1.36 – 1.34 * – * – 64.73% 100.00%
Management Discussion

142 Ownership Services Ab SEK 8.17 0.08 1.61 7.92 6.23 – – (0.04) – (0.04) 1.61 64.73% 100.00%
143 Holiday Club Canarias
Investments S.L. EUR 74.97 0.02 (0.02) 1.04 1.04 – – (0.01) – (0.01) – 64.73% 100.00%
144 Holiday Club Sport and Spa AB SEK 8.17 0.82 11.24 39.94 27.88 – 45.40 1.84 0.41 1.43 11.24 33.01% 51.00%
145 Holiday Club Canarias Sales &
Marketing S.L. EUR 74.97 0.02 28.87 142.87 113.98 – 39.02 (2.18) (0.81) (1.37) – 64.73% 100.00%
Corporate
Governance

146 Holiday Club Canarias Resort

Management S.L. EUR 74.97 0.02 20.62 64.97 44.33 – 18.77 2.85 0.80 2.05 – 64.73% 100.00%
147 Kiinteistö Oy Tunturinrivi EUR 74.97 0.12 0.74 0.86 – – – (0.04) – (0.04) – 64.73% 100.00%
148 Caribia Service Oy EUR 74.97 0.06 (0.03) 0.03 – – – (0.01) – (0.01) – 64.73% 100.00%
149 Are Semesterby A# SEK 8.17 0.08 (0.01) 0.07 – – – * – * – 64.73% 100.00%
150 Are Semesterby B# SEK 8.17 0.08 (0.01) 0.07 – – – * – * – 64.73% 100.00%
Report

151 Are Semesterby C# SEK 8.17 0.08 (0.01) 0.07 – – – * – * – 64.73% 100.00%
152 Are Semesterby D# SEK 8.17 0.08 (0.01) 0.07 – – – * – * – 64.73% 100.00%
153 Are Villas 1 Ab SEK 8.17 0.04 1.42 1.47 0.01 – 10.15 0.95 – 0.95 – 64.73% 100.00%
154 Are Villas 2 Ab SEK 8.17 0.04 1.17 1.22 0.01 – 10.15 0.95 – 0.95 – 64.73% 100.00%
Notes :
* denotes amounts less than Rs. 50,000.
Business Responsibility

** denotes companies yet to commence operations

*** Mahindra International UK Ltd. was incorporated on 13 th October, 2015 and will prepare its first statutory accounts for the year ending March 31, 2017.
^ MachinePulse Tech Private Limited was incorporated on 5th January, 2016 and will prepare its first statutory accounts for the year ending March 31, 2017.
@ excluding shares issued to ESOP Trusts of the respective entities/their holding companies but not allotted to employees as per the Guidance Note on Accounting for Employee Share Based Payments
issued by ‘The Institute of Chartered Accountants of India’.
Accounts

# denotes companies where reporting period is 1st January, 2015 to 31st December, 2015. The financial year for all other subsidiaries is 1st April, 2015 to 31st March, 2016.
Standalone

Names of subsidiaries which have ceased to exist during the year on account of Liquidation/Sale/Merger through scheme of arrangement are as under (also refer note 1 of Consolidated Financial
Statements):
Saariselkä Resort Oy Kiinteistö Oy Katinpalsta Kiinteistö Oy Kulennoinen
Kiinteistö Oy Jalomella Holiday Club Golf Saimaa Oy Kongressi- ja Kylpylähotelli Caribia Oy
Kiinteistö Oy Outapalas Kiinteistö Oy Rauhan Ranta 6 Oü Holiday Club Tallinn
Kiinteistö Oy Ulkuvuoma Kiinteistö Oy Rauhan Parkki Kiinteistö Oy Hakan Perusyhtiö 79
Himos Hillside Golf Oy Saimaan Palvelukiinteistöt Oy Swaraj Automotives Limited

Mahindra & Mahindra Limited

Accounts

Sallan Tunturipalvelut Oy Kiinteistö Oy Paviljongin Pysäköinti Divine Heritage Hotels Private Limited
Kiinteistö Oy Pisterinniementie 2 Saimaa Action Park Oy Holiday on Hills Resorts Private Limited
Consolidated

Holiday Club Katinkullan Villas Oy Kiinteistö Oy Lappeenrannan Saimaan Kreivi Competent Hotels Private Limited

263
Kiinteistö Oy Katinkullan Villas Parkki
Part “B” Details of Associates / Joint Ventures
Rupees crores
Name of Associates / Joint Ventures Audited No. of Equity % of Cost of Networth Profit / (Loss) for the year
Balance Sheet shares Holding Investments attributable to
Considered in Not considered
Date held (Equity Shareholding as
Consolidation in
Shares) per latest audited
consolidation
Balance Sheet
Associates ~
Mahindra Construction Company Limited 31/03/2014 9,00,000 37.49% 0.97 (3.55) – (7.13)
Officemartindia.com Limited 31/03/2015 7,49,997 50.00% 0.22 (0.12) – *
Rathna Bhoomi Enterprises Private Limited ** 31/03/2016 500 25.40% * 0.06 – *
Kota Farm Services Limited 31/03/2016 2,73,420 45.00% 0.27 (0.14) – 0.01
Mega One Stop Farm Services Limited (upto 24th November, 2015) – – – – – –
Swaraj Engines Limited 31/03/2016 41,26,417 33.22% 1.63 71.11 17.01 34.19
Mahindra & Mahindra Contech Limited # 31/03/2016 70,000 46.66% 1.73 3.30 0.34 0.39
PSL Media & Communications Limited # 31/03/2016 39,498 36.11% 0.01 0.74 – 0.11
Tech Mahindra Limited ## 31/03/2016 25,66,93,512 26.51% 2,691.53 3,808.86 826.65 2,291.39
Mahindra CIE Automotive Limited *** 31/12/2015 6,52,71,407 20.18% 531.48 405.77 28.40 112.32
CIE Automotive, S.A. @ 31/12/2015 1,60,40,706 12.44% 870.26 520.63 114.66 807.45
Kismat Developers Private Limited ^ 31/03/2016 15 42.86% * (0.22) – *
Topical Builders Private Limited ^ 31/03/2016 175 50.00% * (2.86) – (0.20)
Mahindra Tsubaki Conveyor Systems Private Limited † 31/03/2016 1,53,76,025 49.00% 18.31 28.72 0.85 0.88
Holiday Club Resort Oy (upto 1st September, 2015) £ – – – – (11.19) (55.00)
Koy Sallan Kylpyla ££ $ 49 41.95% 3.23 – – (0.29)
Kiinteistö Oy Seniori-Saimaa ££ 31/12/2015 9,50,000 26.67% 7.12 2.87 – (9.93)
Holiday Club Adventures Oy ££ 31/12/2015 30 25.68% 0.01 0.01 – –
Joint Ventures
Mahindra Sona Limited 31/03/2016 32,75,000 29.77% 1.64 46.40 8.71 20.55
Mahindra Water Utilities Limited ** (upto 26th July, 2015) – – – – – – –
Mahindra Inframan Water Utilities Private Limited ** 31/03/2016 25,000 50.00% 0.03 0.04 (0.01) (0.01)
Mahindra Solar One Private Limited $$ 31/03/2016 27,81,640 26.00% 27.73 28.36 0.60 1.73
Mahindra Homes Private Limited ^ 31/03/2016 2,06,017 50.00% 0.21 (3.18) 3.31 3.31
Mahindra Finance USA LLC @@ 31/03/2016 2,69,17,323 49.00% 153.17 229.64 18.39 19.14
Arabian Dreams Hotel Apartments LLC > 31/03/2016 147 49.00% 0.52 (3.72) (0.07) (0.07)
Jinan Qingqi Peugeot Motorcycles Company Limited € 31/12/2015 1 50.00% 46.25 46.48 4.72 4.72
Mitsubishi Mahindra Agricultural Machinery Co., Ltd § 31/03/2016 4 33.33% 170.13 523.15 (17.63) (8.81)
* denotes amounts less than Rs. 50,000.
~ Significant influence is excercised through shareholding except CIE Automotive, S.A. where it is through contractual representation on the board of the
company
** Shareholding is through a subsidiary, Mahindra Infrastructure Developers Limited.
# Shareholding is through the Company and its subsidiary, Mahindra Holdings Limited.
^ Shareholding is through a subsidiary, Mahindra Lifespace Developers Limited.
@ Shareholding is through a subsidiary, Mahindra Overseas Investment Company (Mauritius) Limited.
*** Shareholding is through a subsidiary, Mahindra Vehicle Manufacturers Limited
£ Shareholding is through a subsidiary, Convington S.à.r.l.
† Shareholding is through a subsidiary, Mahindra Engineering and Chemical Products Limited.
## Shareholding is through the Company and its subsidiaries, Mahindra Holdings Limited and Mahindra-BT Investment Company (Mauritius) Limited.
@@ Shareholding is through a subsidiary, Mahindra & Mahindra Financial Services Limited.
$$ Shareholding is through a subsidiary, Mahindra Holdings Limited.
££ Shareholding is through a subsidiary, Holiday Club Resort Oy.
> Shareholding is through a subsidiary, Mahindra Holidays & Resorts India Limited.
$ Koy Sallan Kylpyla was incorporated during the year and will prepare its first statutory accounts for the period ending December 31, 2016.
€ Shareholding is through a subsidiary, Peugeot Motocycles S.A.S.
§ In addition to JPY750 million Common Stock (which represents 33.33% of the Common stock),the Company owns the entire JPY 2,250 million “Class A”
shares (shares with no voting rights); “Class A” shares have rights over dividend and liquidation on an equal basis with Common Stock.”
Notes :
1. No associates/ Joint ventures are yet to commence operations.
2. No associates/ Joint ventures have been liquidated or sold during the year.

}
Deepak S. Parekh Anand G. Mahindra Chairman & Managing Director
Nadir B. Godrej
M. M. Murugappan Dr. Pawan Goenka Executive Director & Group President
R. K. Kulkarni (Auto and Farm Sector)
Directors
Anupam Puri V. S. Parthasarathy Group Chief Financial Officer, Group CIO &
Vishakha N. Desai President (Group Finance and M&A)
Vikram Singh Mehta
S. B. Mainak Narayan Shankar Company Secretary

Mumbai, 30 th May, 2016

264 Annual Report 2015-16

 ATTENDANCE SLIP
Mahindra & Mahindra Limited
Registered Office: Gateway Building, Apollo Bunder, Mumbai – 400 001.
CIN: L65990MH1945PLC004558
website: www.mahindra.com • email: investors@ mahindra.com • Tel: +91 22 22895500 • Fax: +91 22 22875485

PLEASE COMPLETE THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL. Joint Shareholders desiring to attend
the Meeting may obtain additional Attendance Slips on request. Such request should reach the Company or its Registrar & Transfer Agents,
Karvy Computershare Private Limited at Karvy Selenium, Tower B, Plot No. 31 & 32, Gachibowli, Financial District, Nanakramguda, Hyderabad,
Telangana – 500 032 on or before 25th July, 2016.

I hereby record my presence at the SEVENTIETH ANNUAL GENERAL MEETING of the Company being held at Birla Matushri Sabhagar,
19, Sir Vithaldas Thackersey Marg (New Marine Lines), Mumbai – 400 020 on 10th August, 2016 at 3.00 pm.
Name(s) of the Shareholder(s)/Proxy (IN BLOCK LETTERS)

Signature(s) of Shareholder(s) or Proxy

Note: You are requested to bring your copy of the Annual Report to the Meeting.

 

(To be retained throughout the Meeting)

E-VOTING SLIP

Mahindra & Mahindra Limited

Registered Office: Gateway Building, Apollo Bunder, Mumbai – 400 001.
CIN: L65990MH1945PLC004558
website: www.mahindra.com • email: investors@ mahindra.com • Tel: +91 22 22895500 • Fax: +91 22 22875485

ELECTRONIC VOTING PARTICULARS

EVEN
USER ID PASSWORD/PIN
(E-Voting Event Number)

2430

Note: 1. The remote e-voting period will commence on Friday, 5th August, 2016 (9:00 a.m. IST) and will end on Tuesday,
9th August, 2016 (5:00 p.m. IST).
2. Please read instructions given overleaf before voting electronically.
Instructions for e-voting :

Members are requested to follow the instructions given below before they cast their votes through remote e-voting:
1. New Users
(i) User ID and password/PIN for e-voting is provided in the table overleaf. Please note that the password is
an initial password.
(ii) Launch internet browser by typing the URL: https://www.evoting.karvy.com
(iii) Enter the login credentials (i.e. User ID and password). In case of physical folio, User ID will be EVEN
(E-Voting Event Number) followed by folio number. In case of Demat account, User ID will be your DP ID
and Client ID.
(iv) 
You will now reach password change menu wherein you are required to mandatorily change your
password/PIN with a new password of your choice with minimum 8 characters. The system will prompt
you to change your password and update your contact details like mobile number, email ID etc. on first
login. You may also enter a secret question and answer of your choice to retrieve your password in case
you forget it. It is strongly recommended not to share your password with any other person and take
utmost care to keep your password confidential.
(v) You need to login again with the new credentials.
(vi) On successful login, the system will prompt you to select the “EVENT” i.e. Mahindra & Mahindra Limited.
(vii) Now you are ready for e-voting as voting page opens.
(viii) You may then cast your vote by selecting an appropriate option and click on “Submit” and also click on
“OK” to confirm else “CANCEL” to modify.
(ix) Once you have voted on the resolution, you will not be allowed to modify your vote.
(x) Corporate/Institutional Members (i.e. other than individuals, HUF, NRI etc.) are required to send
scanned certified true copy (PDF Format) of the Board Resolution/Authority letter etc. together with
attested specimen signature(s) of the duly authorized representative(s), to the Scrutinizer at e-mail ID
sbhagwatcs@yahoo.co.in with a copy marked to evoting@karvy.com. The scanned image of the above
mentioned documents should be in the naming format “Corporate Name_EVEN.”

2. Existing Users

If you are already registered with Karvy Computershare Private Limited (“Karvy”) for e-voting then you can use
your existing user ID and password/PIN for casting your vote. Please follow the steps from Sl. No. (vi) to (x).

Voting at the General Meeting:

The facility for voting through e-voting system of Karvy shall also be made available at the Annual General Meeting
(“AGM”) and Members attending the AGM who have not already cast their vote through ‘remote e-voting’ shall be
able to exercise their right to vote at the AGM. Members who have cast their vote through ‘remote e-voting’ may also
attend the meeting but shall not be entitled to cast their vote again.

General Instructions :
I. In case of any queries and/or grievances, in respect of voting by electronic means, Members may refer to the
Help & Frequently Asked Questions (FAQs) and E-voting user manual available at the download section of
https://evoting.karvy.com (Karvy Website) or contact investors@ mahindra.com or evoting@ karvy.com or
call 040 – 6716 1500 or Karvy’s toll free No. 1800-3454-001 for any further clarifications.
II. Once the vote on a resolution is cast by the Member, the Member shall not be allowed to change it subsequently.
III. The voting rights of Members shall be in proportion to their share in the paid up equity share capital of the
Company as on the cut-off date i.e. 3rd August, 2016.
IV. Mr. Sachin Bhagwat, Practicing Company Secretary (Membership No. ACS10189) has been appointed as the
Scrutinizer to scrutinize the e-voting process in a fair and transparent manner.
 PROXY FORM
[Pursuant to section 105(6) of the
Companies Act, 2013 and rule 19(3)
of the Companies (Management
and Administration) Rules, 2014]

Mahindra & Mahindra Limited

Registered Office: Gateway Building, Apollo Bunder, Mumbai – 400 001.
CIN: L65990MH1945PLC004558
website: www.mahindra.com • email: investors@ mahindra.com • Tel: +91 22 22895500 • Fax: +91 22 22875485

Name of the member(s) :

Registered address :

E-mail Id :

Folio No./Client Id :

DP ID :

I/We, being the member(s) of shares of the above named company, hereby appoint:

1. Name: E-mail Id:

Address:

Signature: , or failing him

2. Name: E-mail Id:

Address:

Signature: , or failing him

3. Name: E-mail Id:

Address:

Signature:

as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 70 th Annual General Meeting of the Company, to be held on
the 10 th day of August, 2016 at 3.00 p.m. at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg (New Marine Lines), Mumbai - 400 020 and
at any adjournment thereof in respect of such resolutions as are indicated below:

Resolution
Description For Against
No.

1. To receive, consider and adopt the Audited Financial Statement (including Audited Consolidated
Financial Statement) of the Company for the Financial Year ended 31st March, 2016 and the Reports
of the Board of Directors and Auditors thereon.

2. Declaration of Dividend on Ordinary (Equity) Shares.

3. Re-appointment of Mr. S. B. Mainak (DIN: 02531129) as a Director, who retires by rotation and, being
eligible, offers himself for re-appointment.

4. Ratification of appointment of Messrs Deloitte Haskins & Sells, Chartered Accountants, (ICAI Firm
Registration Number 117364W) as Auditors of the Company until the conclusion of the Seventy-
First Annual General Meeting of the Company to be held in the year 2017 and approve their
remuneration.

[P.T.O.]
 Resolution
Description For Against
No.

5. Ratification of the remuneration payable to Messrs D. C. Dave & Co., Cost Accountants, (Firm
Registration Number 000611), appointed as the Cost Auditors of the Company.

6. Borrow by way of securities, including but not limited to, secured/unsecured redeemable
Non-Convertible Debentures and/or Commercial Paper to be issued under Private Placement basis
upto Rs. 5,000 crores.

7. Approval for change in the place of keeping the Registers and Index of Members, Debenture
Holders and other security holders, if any, and copies of Annual Returns of the Company.

Signed this day of 2016.

Affix
Revenue
Stamp
Signature of Shareholder Signature of Proxy holder(s)

Note:
1. This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than
48 hours before the commencement of the Meeting.
2. A person can act as proxy on behalf of Members not exceeding fifty and holding in the aggregate not more than ten percent of the total share
capital of the Company carrying voting rights. Further, a Member holding more than ten percent, of the total share capital of the Company
carrying voting rights may appoint a single person as proxy and such person shall not act as proxy for any other Member.
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