MIRA INFORM REPORT

Report Date :

27.04.2011

IDENTIFICATION DETAILS

Name :	MAHINDRA AND MAHINDRA LIMITED

Registered Office :	Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	02.10.1945

Com. Reg. No.:	11-004558

CIN No.: [Company Identification No.]	L65990MH1945PLC004558

TAN No.: [Tax Deduction & Collection Account No.]	MUMM01692F

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturers of Light Commercial Vehicles, Agricultural Tractors, Implements and Utility Vehicles.

RATING & COMMENTS

MIRA’s Rating :

A (69)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 313170000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Exists

Comments :	Subject is a Mahindra group company. It is a well established and a reputed company having good track. Financial position appears to be sound. Directors are respectable and experienced businessmen, having satisfactory means of their own. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. It can be regarded as promising business partner in medium to long run.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION DECLINED BY

Management Non Co Operative

LOCATIONS

Registered Office :	Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22021031
Fax No.:	91-22-22028780/22875485
E-Mail :	mahindra@giasbm01.vsnl.net.in narayan.shankar@mahindra.com
Website :	http://www.mahindraworld.com http://www.mahindra.com

Head Office :	Mahindra Towers, G.M. Bhosale Marg, Worli, Mumbai - 400 018, Maharashtra, India

Factory :	Located at: · Akurli Road, Kandivli (East), Mumbai - 400 101, Maharashtra, India · Igatpuri, Nashik 422403, Maharashtra, India · Nasik, Maharashtra, India · Nagpur, Maharashtra, India · Zaheerabad, Andhra Pradesh, India · Rudrapur, Uttar Pradesh, India · Haridwar · Pune

Branches :	Located at : · Dhun Building, 827, Anna Salai, Chennai - 600 827, Tamilnadu, India · 7, Dr. Ishaque Road (Old KYD Street), Kolkata - 700 016, West Bengal · Jeevan Deep Building, No. 8, Parliament Street, New Delhi - 110 001 · Raheja Chambers, First Floor, 12, Museum Road, Bengaluru - 560 001 · Mahindra Towers, 2-A, Bhikaji Cama Place, New Delhi – 110066, India · Mahindra Towers, First Floor, 17/18, Pattulous Road, Chennai – 600002, Tamilnadu, India

DIRECTORS

(As on 31.03.2009)

Name :	Mr. Keshub Mahindra
Designation :	Chairman

Name :	Mr. Anand G. Mahindra
Designation :	Vice Chairman and Managing Director

Name :	Mr. Deepak S. Parekh
Designation :	Director

Name :	Mr. Nadir B. Godrej
Designation :	Director

Name :	Mr. M. M. Murugappan
Designation :	Director

Name :	Mr. Narayanan Vaghul
Designation :	Director

Name :	Mr. A. S. Ganguly
Designation :	Director

Name :	Mr. R. K. Kulkarni
Designation :	Director

Name :	Mr. Anupam Puri
Designation :	Director

Name :	Mr. Arun Kanti Dasgupta
Designation :	Nominee of Life Insurance Corporation of India

Name :	Mr. Bharat Doshi
Designation :	Executive Director

Name :	Mr. A. K. Nanda
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. Narayan Shankar
Designation :	Company Secretary

Name :	Mr. Bharat Doshi
Designation :	Group Chief Financial Officer

Name :	Mr. A. K. Nanda
Designation :	President - Infrastructure Development Sector

Name :	Mr. Anjanikumar Choudhari
Designation :	President – Farm Equipment Sector

Name :	Mr. Rajeev Dubey
Designation :	President – HR, After – Market and Corporate Services

Name :	Mr. Pawan Goenka
Designation :	President – Automotive Sector

Name :	Mr. Hemant Luthra
Designation :	President – Systems and Techonologies Sector

Name :	Mr. Anoop Mathur
Designation :	President – Two-Wheeler Sector

Name :	Mr. Uday Y. Phadke
Designation :	President - Finance, Legal and Financial Services Sector

Name :	Mr. Ulhas N. Yargop
Designation :	President – Information Technology Sector

Audit Committee :	Deepak S. Parekh Nadir B. Godrej M. M. Murugappan R. K. Kulkarni

Share Transfer and Shareholders/ Investors Grievance Committee :	· Keshub Mahindra - Chairman · Anand G. Mahindra · Bharat Doshi · K. Nanda · R. K. Kulkarni

Remuneration/Compensation Committee :	· Narayanan Vaghul · Keshub Mahindra · Nadir B. Godrej · M. M. Murugappan

Loans and Investment Committee :	· Keshub Mahindra · Anand G. Mahindra · Bharat Doshi · K. Nanda · R. K. Kulkarni

Research and Development Committee :	· S. Ganguly · Anand G. Mahindra · Nadir B. Godrej · M. M. Murugappan · Bharat Doshi

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4,136,542	0.72
Bodies Corporate	66,236,030	11.47
Any Others (Specify)	81,764,812	14.16
M&M Benefit Trust	51,835,214	8.98
Employee Welfare Trust	2,096,660	0.36
Any Other	27,832,938	4.82
Sub Total	152,137,384	26.35
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	731,772	0.13
Sub Total	731,772	0.13
Total shareholding of Promoter and Promoter Group (A)	152,869,156	26.47
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	30,438,010	5.27
Financial Institutions / Banks	1,627,706	0.28
Central Government / State Government(s)	453,682	0.08
Insurance Companies	112,718,525	19.52
Foreign Institutional Investors	140,866,236	24.39
Sub Total	286,104,159	49.55
(2) Non-Institutions
Bodies Corporate	62,450,538	10.81
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	42,623,056	7.38
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	9,099,026	1.58
Any Others (Specify)	24,304,731	4.21
Non Resident Indians	1,938,167	0.34
Foreign Nationals	972	-
Overseas Corporate Bodies	1,607,628	0.28
Trusts	191,107	0.03
Clearing Members	674,552	0.12
Foreign Corporate Bodies	19,892,305	3.44
Sub Total	138,477,351	23.98
Total Public shareholding (B)	424,581,510	73.53
Total (A)+(B)	577,450,666	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	36,489,443	-
Sub Total	36,489,443	-
Total (A)+(B)+(C)	613,940,109	-

BUSINESS DETAILS

Line of Business :

Manufacturers of Light Commercial Vehicles, Agricultural Tractors, Implements and Utility Vehicles.

Products :

Product Description	Item Code No.
Tractors	8701
Motor vehicles for the transport of more than six persons, excluding the driver	8702
Other motor vehicles principally designed for the transport of persons	8703

PRODUCTION STATUS (As on 31.03.2008)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
On Road Automobiles having four or more wheels such as light, medium and heavy commercial vehicles, jeep type vehicles and passenger cars covered under sub heading (5) of Heading (7) of First Schedule [Note (iv) below]	Nos.	276000	229000	162400
Three Wheelers	Nos.	111000	54000	34556
Agricultural tractor	Nos.	189000	173000	95301
Tractor Skids	-	-	These are manufactured against spare capacity under 2 (a)	3616
Manufactured and purchased parts and accessories for sale	Nos.	-	These are manufactured against spare capacityunder 1 and 2above	242709
Internal Combustion Piston Engines	Nos.	175000	136000	129236
Petrol and Accessories of motor Vehicles	Nos.	500000	125000	80967
Internal Combustion Engines	Nos.	60000	54000	47597
D. G. Sets	Nos.	24000	Assembly at 3^rd Party Locations	16943
Engines	Nos.	-	These are manufactured against spare capacity under 2 (a)	15129

Note:

· The installed capacity has been certified by Presidents, which the auditors have relied on without verification as this is a technical matter.

· The licensed capacities include/represent, as the case may be, registrations granted and Industrial Entrepreneur Memorandum filed with, and duly acknowledged by, the Government pursuant to the schemes of de-licensing. [Also see note (v) below].

· Within the overall licensed capacity in item 1 above, the Company is permitted to manufacture for outside sale 10,000 petrol/diesel engines and 4,000 tonnes grey iron castings.

· Bullet proof work and fabrication on base vehicles has been carried out at third party facilities. 38 (2007: 190) vehicles were produced and sold using such third party facilities and are included in item (A) 1(a).

· The installed capacity mentioned against item no. (A) 1(a) above includes 48,000 (2007: 42,000) for production of vehicles for third parties.

GENERAL INFORMATION

No. of Employees :

18821 (Approximately)

Bankers :

· Standard Chartered Grindlays Bank Limited, Mumbai

· Bank of America N.T and S.A, Mumbai

· Bank of Baroda, Mumbai

· Bank of India, Mumbai

· Canara Bank, Mumbai

· Central Bank of India, Mumbai

· HDFC Bank Limited, Mumbai

· State Bank of India, Mumbai

· Union Bank of India, Mumbai

Facilities :

Secured Loan	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
(1) Debentures/Bonds	6000.100	6000.100
(2) Foreign Currency Loans from Banks	0.000	1242.900
(3) Loans and Advances on cash credit account from Banks	24.400	30.000
(4) Short-term Foreign Currency Loans From Banks	0.000	2537.000
Total	6024.500	9810.000

Unsecured Loan	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
(1) Fixed Deposits	1662.200	308.500
(2) Short-term Loans from Banks	0.000	800.000
(3) Other Loans	21114.800	29609.100
Total	22777.000	30717.600


Banking Relations :	--

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate, Worli, Mumbai - 400 018, Maharashtra, India

Associates :	· Mahindra Composites Limited · Mahindra Water Utilities Limited · Mahindra Construction Company Limited · Swaraj Automotives Limited · Owens Cornings (India) Limited · Swaraj Engines Limited

Subsidiaries :	· Mahindra Engineering and Chemical Products Limited · Mahindra Logisoft Business Solutions Limited · Mahindra First Choice Wheels Limited (formerly known as First Choice Wheels Limited) · Mahindra USA Inc. · Mahindra Gujarat Tractor Limited · Mahindra (China) Tractor Company Limited · Mahindra Shubhlabh Services Limited · Mahindra and Mahindra South Africa (Proprietary) Limited · Mahindra Europe s.r.l. · Mahindra Engineering Services Limited (formerly known as Mahindra Engineering Design and Development Company Limited) · Mahindra SAR Transmission Private Limited · Mahindra Overseas Investment Company (Mauritius) Limited · Mahindra-BT Investment Company (Mauritius) Limited · Mahindra Intertrade Limited · Mahindra Steel Service Centre Limited · Mahindra Middleeast Electrical Steel Service Centre (FZC) · Mahindra Consulting Engineers Limited · Mahindra Holidays and Resorts India Limited · Mahindra Holidays and Resorts USA Inc. · NBS International Limited · Mahindra Ugine Steel Company Limited · Mahindra and Mahindra Financial Services Limited · Mahindra Insurance Brokers Limited · Tech Mahindra Limited · Tech Mahindra (Americas) Inc. · Tech Mahindra GmbH · Tech Mahindra (Singapore) Pte. Limited · Tech Mahindra (Thailand) Limited · Tech Mahindra FoundationTech Mahindra (R and D Services) Inc. (upto 30^th June, 2008) · Bristlecone Limited · Bristlecone Inc. · Bristlecone UK Limited · Bristlecone India Limited · Bristlecone (Singapore) Pte. Limited · Bristlecone GmbH · Mahindra Renault Private Limited · Mahindra Navistar Automotives Limited (formerly known as Mahindra International Limited) · Stokes Group Limited · Jensand Limited · Stokes Forgings Limited · Stokes Forgings Dudley Limited · Mahindra Engineering Services (Europe) Limited (formerly known as Plexion Technologies (UK) Limited) · Plexion Technologies GmbH · Mahindra Technologies Inc. (formerly known as Plexion Technologies Inc.) · Mahindra Lifespace Developers Limited · Mahindra World City (Jaipur) Limited · Mahindra World City Developers Limited · Mahindra Infrastructure Developers Limited · Mahindra Integrated Township Limited · Mahindra World City (Maharashtra) Limited · PT Tech Mahindra Indonesia · Mahindra Forgings International Limited · CanvasM Technologies Limited · CanvasM (Americas) Inc. · Mahindra Forgings Europe AG · Gesenkschmiede Schneider GmbH · JECO-Jellinghaus GmbH · Falkenroth Umformtechnik GmbH · Mahindra Vehicle Manufacturers Limited (formerly known as Mahindra Automotive Limited) · Schoneweiss and Company GmbH · Mahindra Hinoday Industries Limited · MHR Hotel Management GmbH · Mahindra Forgings Limited · Mahindra Rural Housing Finance Limited · Mahindra Hotels and Residences India Limited · Mahindra Forgings Global Limited · Bristlecone (Malaysia) SDN.BHD · Tech Mahindra (Malaysia) SDN.BHD · Punjab Tractors Limited · Mahindra Castings Private Limited · Mahindra Retail Private Limited (upto 14^th January, 2009) · Mahindra Knowledge City Limited (formerly known as Mahindra Technology Park Limited) · Mahindra Holdings Limited · Mahindra Logistics Limited · Tech Mahindra (Beijing) IT Services Limited · Mahindra Navistar Engines Private Limited · Mahindra Residential Developers Limited · Mahindra Graphic Research Design s.r.l. · Mahindra Aerospace Private Limited · Heritage Bird (M) SDN.BHD · Mahindra First Choice Services Limited · Mahindra Bebanco Developers Limited (w.e.f. 3^rd June, 2008) · Mahindra Gears Global Limited (formerly known as Iven International Gear Mauritius Limited) (w.e.f. 6^th June, 2008) · Mahindra Gears Cyprus Limited (formerly known as Kalbarri Trading Limited) (w.e.f. 6^th June, 2008) · Mahindra Gears International Limited (w.e.f. 10^th June, 2008) · Mahindra Metal Castello S.r.l. (w.e.f. 17^th June, 2008) · Mahindra Industrial Township Limited (w.e.f. 2^nd July, 2008) · Metalcastello S.p.A (w.e.f. 3^rd July, 2008) · Crest Geartech Private Limited (w.e.f. 3^rd July, 2008) · Engines Engineering S.r.l (w.e.f. 5^th Aug, 2008) · Eff Engineering S.r.l (w.e.f. 5^th Aug, 2008) · ID-EE S.r.l (w.e.f. 5^th Aug, 2008) · Mahindra IT Consulting Private Limited (w.e.f. 16^th Sept, 2008) · Mahindra Automotive Australia Pty. Limited (w.e.f. 23^rd Sept, 2008) · Mahindra Two Wheelers Limited (w.e.f. 29^th Sept, 2008) · Mahindra United Football Club Private Limited (w.e.f. 3^rd Nov, 2008) · Mahindra Defence Land Systems Private Limited (w.e.f. 4^th March, 2009) · Mahindra Yeuda (Yancheng) Tractor Company Limited (w.e.f. 28^th November, 2008) · Venturbay Consultants Private Limited (w.e.f. 19^th March, 2009)

Joint Venture Company :	Mahindra Sona Limited

CAPITAL STRUCTURE

(As on 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
1200000000	Ordinary Equity Share	Rs.5/- each	Rs.6000.000 millions
2500000	Unclassified Share	Rs.100/- each	Rs.250.000 millions

	Total		Rs.6250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
578434478	Ordinary Equity Share	Rs.5/- each	Rs.2892.100 millions
12526592	Less :Ordinary Share (Fully Paid up issued to ESOP Trust but not allotted to employees)	Rs.5/- each	Rs.62.600 millions

	Total		Rs.2829.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		2829.500	2726.200	2390.700
2] Employee Stock Options Outstanding		0.000	65.500	40.000
3] Share Application Money		0.000	0.000	0.000
4] Reserves & Surplus		75438.200	49829.100	41070.000
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		78267.700	52620.800	43500.700
LOAN FUNDS
1] Secured Loans		6024.500	9810.000	6172.600
2] Unsecured Loans		22777.000	30717.600	19698.000
TOTAL BORROWING		28801.500	40527.600	25870.600
DEFERRED TAX LIABILITIES		4225.000	0.000	567.200

TOTAL		111294.200	93148.400	69938.500

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		27385.200	25676.000	18144.500
Capital work-in-progress		9642.000	6467.300	5464.500

INVESTMENT		63980.200	57864.100	42150.500
DEFERREX TAX ASSETS		1821.700	182.700	0.000

FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT		0.000	181.100	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11887.800	10606.700	10841.100
	Sundry Debtors	12580.800	10436.500	10048.800
	Cash & Bank Balances	17432.300	15744.300	8612.300
	Other Current Assets	0.000	15.600	132.700
	Loans & Advances	18523.000	13826.200	6918.800
Total Current Assets		60423.900	50629.300	36553.700
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	32600.900	33368.000
	Current Liabilities	1433.700	1834.000	23075.500
	Provisions	17965.400	12775.600	9434.600
Total Current Liabilities		52000.000	47977.600	32510.100
Net Current Assets		8423.900	2651.700	4043.600
MISCELLANEOUS EXPENSES		41.200	125.500	135.300

TOTAL		111294.200	93148.400	69938.500

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	183496.200	129268.200	112817.300
		Other Income	6586.000	6009.300	6385.400
		TOTAL (A)	190082.200	135277.500	119202.700

Less	EXPENSES
		Cost of Materials	123566.100	91179.400	78750.200
		Manufacturing Expenses	2575.300	2123.000	2086.100
		Power and Fuel Cost	1209.700	986.900	913.300
		Employees Remuneration	11904.200	10184.100	8617.000
		Selling and Distribution Expenses	11356.600	8777.400	10628.600
		Stock Adjustments	(236.900)	1562.900	(1491.100)
		Administrative Expenses	5963.400	5535.500	2368.400
		TOTAL (B)	156338.400	120349.200	101872.500

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		33743.800	14928.300	17330.200

Less	FINANCIAL EXPENSES (D)		1568.500	1341.200	875.900

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		32175.300	13587.100	16454.300

Less/ Add	DEPRECIATION/ AMORTISATION (F)		3707.800	2915.100	2386.600

	PROFIT BEFORE TAX (E-F) (G)		28467.500	10672.000	14067.700

Less	TAX (H)		7590.000	1996.900	3034.000

	PROFIT AFTER TAX (G-H) (I)		20877.500	8675.100	11033.700

	Earnings Per Share (Rs.)		--	31.11	--

QUARTERLY RESULTS

PARTICULARS	30.06.2010 1^st Quarter	30.09.2010 2^nd Quarter	31.12.2010 3^rd Quarter
Net Sales	51601.000	54343.600	61210.900
Total Expenditure	43845.200	45393.900	51973.300
PBIDT (Excl OI)	7755.800	8949.700	9237.600
Other Income	204.800	2244.300	641.000
Operating Profit	7960.600	11194.000	9878.600
Interest	(227.000)	156.100	195.200
Exceptional Items	0.000	0.000	1174.800
PBDT	8187.600	11037.900	10858.200
Depreciation	976.200	970.000	1021.800
Profit Before Tax	7211.400	10067.900	9836.400
Tax	1587.500	2483.000	2489.600
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	5623.900	7584.900	7346.800
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	5623.900	7584.900	7346.800

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	10.98	6.41	9.25

Net Profit Margin (PBT/Sales)	(%)	15.51	8.25	12.46

Return on Total Assets (PBT/Total Assets}	(%)	32.41	13.98	25.71

Return on Investment (ROI) (PBT/Networth)		0.36	0.20	0.32

Debt Equity Ratio (Total Liability/Networth)		1.08	1.68	1.34

Current Ratio (Current Asset/Current Liability)		1.16	1.06	1.12

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008

Total outstanding dues of micro and small enterprises	59.900	59.900	NA
Total outstanding dues of creditors other than micro and small enterprises	30808.500	32061.900	NA
Dues to subsidiaries	1732.500	1246.200	NA
Total	32600.900	33368.000	NA

HISTORY

The Mahindra brothers joined hands with a distinguished gentleman called Ghulam Mohammed and to make the birth of Mahindra and Mahindra in October 2nd, 1945 as Mahindra and Mohammed, a franchise for assembling jeeps from Willys, USA. Two years later, India became an independent nation and in 1948 Mahindra and Mohammed changed its name to Mahindra and Mahindra (M and M). The Steel trading business was commenced in association with suppliers in UK. Since then, Subject has grown steadily in size and stature and evolved into a Group that occupies a premier position in almost all key sectors of the economy. Mahindra Group is among the top 10 industrial houses in India. Its products and services is grouped into seven groups, such as Automotive, Farm Equipment, Trade and Financial Services, Information Technology, Infrastructure Development, Systech and Speciality Business. The first business was with Mitsubishi Corporation commenced and 5000 tons of wagon building plates from Yawata Iron and Steel were supplied during the period of 1950. In the year 1953 Otis Elevator Company (India) was established. A joint venture was made with Rubery Owen and Company Limited, UK and established a company under the name of Mahindra Owen. The company's Machine Tools Division was commenced its operations in the year 1958. During the year 1960 the Mahindra Sintered Products Limited was established based on a joint venture with Bir Field (GKN Group, UK) and the year later, the Mahindra Ugine Steel Company was established with a joint venture between the company and Ugine Kuhlmann, France. The company's major milestone was happened in the year 1963, the International Tractor Company of India established - a joint venture with International Harvester Company, USA and now the thing is subject is the only Indian company among the top three tractor manufacturers in the world. The company entered into light commercial vehicles segment also, the manufacture of light commercial vehicles was commenced in the year 1965. Vickers Sperry of India Limited established - a joint venture with Sperry Rand Corporation, USA in the same year. 1969 was the year to company; Subject entered the world market with export of utility vehicles and spare parts. Mahindra Engineering and Chemical Products Limited was originated its operations during the year 1970. In the year 1977, the International Tractor Company of India merged with subject to become its Tractor Division and within two years Mahindra brand of tractors was launched. The company entered into Information Technology by the way of leading Tech Mahindra (formerly known as Mahindra British Telecom) established - a joint venture with British Telecommunications Plc (BT), UK. During the year 1991 the company introduced Commander range of vehicles and the Mahindra Financial Services Limited was established as a wholesale fund provider. Merged diverse activities of Steel, Machine Tools and Graphics into Intertrade Division in the year 1992. In 1993 subject incorporated the Mahindra British Telecom International Inc., USA a wholly owned subsidiary of Mahindra British Telecom. The company established Mahindra Steel Service Centre Limited in association with Mitsubishi Corporation and Nissho Iwai Corporation of Japan. The company and Acres International Limited (Canada) was jointly instituted the Mahindra Acres Consulting Engineers Limited to provide multidisciplinary engineering consultancy service. During the period of 1994, Mahindra Realty and Infrastructure Developers Limited was brought its existence. Mahindra USA Inc. was established for distribution of tractors in the USA. The EAC Graphics (India) Limited also was established in the same year by collaboration with The East Asiatic Company Limited A/S, Denmark. Mahindra Allwyn Nissan Limited was merged with the company. In the year 2005, Mahindra Holding and Finance Limited became a subsidiary of subject to carry out business as an investment company and the company made a technical collaboration with Mitsubishi / Samcor to manufacture the Mitsubishi L300. During the year 1996 the company made prestigious actions, the USA's Ford Motor Company was joined with the company and established Mahindra Ford India Limited to manufacture passenger cars. The company made a Foreign Currency Convertible Bond (FCCB) issue of US$ 115 million. The Mahindra Holidays and Resorts India Limited was established and also the Mahindra Consulting (now Bristlecone) was established in the equivalent year. A public private partnership initiative between Mahindra World City and Southern Railway, the Paranur railway station was the first to be redesigned and maintained by the corporate sector in the year 2007. During the same year 2007, the company's Farm Equipment Sector (FES) showcased India's first bio-diesel tractor at the Kisan Mela in Pune on December 14, 2007. Mahindra World City, Jaipur signed MoU with Deutsche Bank on the sidelines of the Resurgent Rajasthan - Partnership Summit' being held in Jaipur to set up campuses. Subject launched the Scorpio V-series, a new line-up of India's leading SUV, with the introduction of the Scorpio VLX. A wholly owned affiliate of Navistar International Corporation (Other OTC: NAVZ), signed a joint venture agreement with the company to produce diesel engines for medium and heavy commercial trucks and buses in India. As in part of Corporate Social Responsibility, the company inaugurated Impact India Foundation's Lifeline Express, world's first hospital on rails on October of the year. The company has been awarded the ISO/IEC 27001:2005 certificate. This completes the company's successful migration from BS 7799 to ISO 27001. Mahindra inaugurated its state -of-the-art Blanking Line facility in Nashik backed by German technology. Subject Auto Sector's Zaheerabad plant has won the First Prize in the National Energy Conservation Awards - 2007. Subject was awarded the 'Excellence in Innovation' Award at the Indira International Innovation Summit (3i's Summit) in February 2008. The company won the BSE award for Best Corporate Social Responsibility Practice at the Social and Corporate Governance Awards (Innovative strategies - Measurable Impacts), presented by BSE and NASSCOM Foundation. As like above the company credited lot of awards from various reputed raters and sources. Acquired Auto Designing co., G.R. Grafica Ricerca Design S.r.l (GRD), an Italian auto designing, feasibility and styling company based out of Turin, Italy during the year 2008. Mahindra Holidays and Resorts India Limited (MHRIL) signs an MOU with West Bengal Tourism Development Corp. (WBTDC) and Sunderban Infrastructure Development Corp. (SIDC) for development of Tourism in West Bengal in February 2008. On March 2008, Mahindra signs MoU with Government of Maharashtra to invest an additional Rs.15000 millions in Chakan Greenfield. As on April of the same year, a consortium of subject and ICICI Venture Funds Managements Limited, India's leading PE player with AUM of over $ 2 billion, has signed a definitive agreement agreeing to acquire 100% stake in Metalcastello S.p.A, a leading Italian independent gear manufacturer and in the same month of the same year launched Mahindra Scorpio SUV in Chile in partnership with Fortaleza of the Automotores Gildemeister Group. Mahindra launched new After-Market Business Vertical, Inaugurates first multi-brand car service centre in Mumbai on April 2008. As on May 2008, the company launched the Mahindra Pik Up Double Cab in Paraguay, in partnership with the Rieder Group.

FINANCIAL HIGHLIGHTS

The year was an extremely trying one. The market place witnessed unprecedented turbulence in the wake of the Global Financial meltdown. A runaway inflation touching a high point of 12% early in the year, the tight monetary policies followed by the authorities for most of the year to control inflation with the consequent high interest rates, the precipitous fall in the value of the Rupee by 26% during the year and weak consumer demand all led to an extremely challenging environment in which the Company had to operate. Despite these daunting conditions, the net income of the Company grew by 14.5% to 133640 millions in the year from Rs.116720 under review in the financial year 2008. However, the difficult global economic climate of the year exerted considerable pressure on the Company and the profit after tax for the current year was Rs.8370 under review against Rs.11030 under review for the previous year.

AUTOMOTIVE SECTOR

The global economic downturn and softening of growth in the Indian economy had an adverse impact on the Indian automotive industry due to strong linkages of the industry with the economy and the Company took corrective steps to align the Company’s production to reduced demand accordingly.

A total of 1,81,842 vehicles and 43,278 three-wheelers were produced as against 2,00,132 vehicles and 34,556 three-wheelers in the last year. These include 8,723 light commercial vehicles (LCVs) and 14,404 cars (previous year 11,079 LCVs and 26,653 cars) manufactured and supplied to two of the Company’s subsidiaries viz. Mahindra Navistar Automotives Limited (MNAL) and Mahindra Renault Private Limited (MRPL).

The Company recorded total sales of 1,61,882 vehicles and 44,806 three-wheelers as compared to 1,61,001 vehicles and 34,076 three-wheelers in the previous year registering a growth of 0.5% and 31% in vehicle sales and three-wheeler sales respectively.

The domestic sales volume of 1,53,654 vehicles [includes 1,53,653 Multi Utility Vehicles (MUVs) and 1 LCV] was higher by 3.3% than the previous year’s volume of 1,48,791 vehicles (includes 1,48,761 MUVs and 30 LCVs) and the domestic sales volume of 44,533 three-wheelers was higher by 31.3% than the previous year’s volume of 33,927 three wheelers. The Company’s domestic MUV sales volume grew by 3.3% as against the industry MUV sales de-growth of 7.4%. In the process, the Company strengthened its dominant position in the domestic MUV segment by increasing its market share to 57.2% over the previous year’s market share of 51.3% - the highest since fiscal 2000.

The Bolero Brand once again demonstrated its popularity by registering a significant growth over the previous year. It remains India’s largest selling MUV brand for the fourth consecutive year.

The Company’s exports were severely impacted by the global downturn. During the year, the Company exported 8,501 vehicles [including 693 LCVs sourced from MNAL and 273 three-wheelers] as compared to the exports of 12,359 vehicles [including 363 LCVs sourced from MNAL and 149 three-wheelers] in the financial year 2008 registering a de-growth of 31%.

Spare parts sales for the year stood at Rs.3627.000 millions (Exports Rs.270 millions) as compared to Rs.3883.000 millions (Exports Rs.399.000 millions) in the previous year.

FARM EQUIPMENT SECTOR

The financial year ending March, 2009 saw the merger of erstwhile Punjab Tractors Limited (PTL) with the Company, with effect from 1^st August, 2008, the Appointed Date of the merger. The merger became effective from 16^th February, 2009 and from the said date it operates as a part of the Farm Equipment Sector of the Company, as its Swaraj Division. Therefore, the current year business figures of the Company include PTL’s financials for the period from 1^st August, 2008 to 15^th February, 2009. During the year, the Company achieved a production of 1,19,098 tractors compared to 98,917 tractors in the previous year. In addition, 52,131 engines were produced for Mahindra Powerol Brand compared to 32,072 engines last year. Following the merger, the two tractor manufacturing plants of the erstwhile PTL at Mohali and Chappercheri along with its foundry facility at Sialba Majri, near Mohali, stands added to the existing tractor manufacturing plants of the Company at Rudrapur, Nagpur, Kandivali and Jaipur.

For the financial year ending on March, 2009, the Company recorded sales of 1,20,202 tractors as against 99,042 tractors sold in the previous year. This included domestic tractor sales of 1,13,269 tractors as compared to domestic sales of 90,509 tractors in the previous year, recording a growth of 25.1%. This performance should be considered against the backdrop of an almost flat industry (+0.6%), faced with the impact of: a) liquidity crunch following the global economic crisis b) stringent lending norms for farm loans due to higher NPA’s and c) high interest rates prevalent throughout the year. The sharp rise in raw material prices in the first half of the year and the consequent price increases by all tractor manufacturers’ also impacted demand.

As a result of the merger of the erstwhile PTL, the Company has firmly established its dominance in the Indian tractor industry, ending the financial year 2009 with a market share of 40.8%, compared to a market share of 29.8% in the previous financial year. This is the 26^th consecutive year of leadership in the Indian tractor industry.

The global economic crisis and the subsequent impact on economies across the globe, including adverse changes in some international currencies had a negative impact on exports from India, including tractors. As a result, this year the Company exported 6,933 tractors, registering a degrowth of 19%, as compared to 8,533 tractors exported last year.

In the farm mechanisation space beyond tractors, the Company sells farm implements and other equipments. The Swaraj Division Plant at Chappercheri is an established manufacturer of harvester combines in the organised Sector in India.

Beyond the Agri space, under the Mahindra Powerol Brand, the Company sold 52,350 engines and gensets in this financial year, as against 31,922 engines and gensets last year - a growth of 64%. With this performance, the Company retained its leadership position in the genset market catering to the telecom space, while strengthening its presence in the retail segment.

Mahindra Defence Systems Division (MDS): With the opening up of the Defence Sector for Private Sector participation in February, 2001, the Company constituted a separate Division viz. MDS to pursue a wide range of Defence Sector activities.

The Company provides world class armouring solutions for light combat vehicles and Sports Utility Vehicles (SUVs) as well as high mobility vehicles for defence, police and paramilitary use.

During the financial year 2009, the Company has commenced operations at the newly commissioned Mahindra Special Military Vehicles (“MSMV”) facility at Prithla, near Faridabad in Haryana. This is the first such dedicated defence vehicle facility in the private sector in India and is designed to provide up-armoured and high mobility vehicles to the armed forces, police and paramilitary forces. Currently, the Plant has an annual capacity of 500 such vehicles and during the financial year 2010 this capability is likely to be expanded further.

In its endeavor to continuously offer technologically better and a wider range of products to the defence forces, the Company has established a Product Development Centre at MSMV. Based on work carried out in the Product Development Centre, product improvements have been effected in the Bullet Proof Scorpio and Rakshak. The Product Development Centre has carried out development of the AXE high mobility vehicle, Marksman and Light Bullet Proof Vehicle based on the specifications of various Government customers. These products have been procured by all the State Governments who are facing problems of insurgency and militancy.

Currently, MDS is engaged in two lines of Defence Businesses (a) Land Systems and (b) Naval Systems.

The Company through MDS has obtained licenses from the Government of India to manufacture a wide range of products which include light armored vehicles, weapon effect simulators, platforms for surveillance sensors and sea mines for the Navy. Through these initiatives, the Company has positioned itself to play a major role in the Indian Defence Sector for the manufacture and integration of weapon systems and platforms. The Company has been exploring opportunities for partnerships with companies equipped with globally proven high end defence technologies and willing to invest in India on a long term basis.

With this objective, the Company is evaluating various options and identifying possibilities for forming separate joint ventures/alliances with strategic partners for carrying on both the Land Systems and Naval Systems Businesses respectively. Accordingly, the Company had proposed to transfer Land Systems and Naval Systems Businesses of MDS together with congeries of rights of the Company in such businesses, to two separate subsidiaries of the Company. In terms of section 293(1)(a) of the Companies Act, 1956 (“the Act”) and in terms of section 192A of the Act read with Clause 4(f) of the Companies (Passing of the Resolution by Postal Ballot) Rules, 2001, approval of the Shareholders was obtained by means of a Postal Ballot. Currently, the Company is in the process of transferring these Businesses into two separate subsidiaries.

PROFITS

The Profit for the year before Depreciation, Interest, Exceptional items and Taxation was Rs.13629.700 millions as against Rs.14969.400 millions in the previous year, a decline of 8.95%. Profit after tax after considering the profits earned by the erstwhile Mahindra Holdings and Finance Limited for the period 1^st February, 2008 to 31^st March, 2008 was Rs.8675.100 millions as against Rs.11033.700 millions in the previous year, a decline of 21.38%. The Company continues with its rigorous cost restructuring exercises and efficiency improvements which have resulted in significant savings through continuous focus on cost controls, process efficiencies and product innovations that exceed customer expectations in almost all areas thereby enabling the Company to take full advantage of the recovery in the economy, as and when it happens

FINANCE

The financial year 2009 has been a very challenging year for corporates in the wake of the unprecedented global

financial crisis. The financial markets world wide faced massive falls in equity values, collapse of fixed income markets, liquidity crunch and huge foreign exchange fluctuations. All Banks resorted to credit freeze which was a major action that posed a major challenge to operations of companies. Inspite of it being a very tough year for all

the companies across the globe and in India, the Company has successfully managed its cash flows efficiently and preserved its credit lines to maintain a comfortable liquidity position. The Bankers continue to rate the Company as a prime customer and extend facilities/services at prime rates.

During the year, the Company has successfully accessed both domestic and overseas capital markets with diverse instruments, maturities and interest rates to part finance its requirements.

In the domestic market, the Company raised Rs.4000 millions by way of private placement of Secured, Non- Convertible Redeemable Debentures (“NCDs”) with an average maturity of 6 years. The Company managed to raise the NCDs at highly competitive rates inspite of there being a severe credit freeze and liquidity crunch in the market. ICRA Limited has assigned a “LAA+” rating to these NCDs indicating high credit quality.

In the last year’s Directors Report, details were mentioned about the Company’s successful offering of Rs.7000 millions comprising of 93,95,974 Unsecured Fully and Compulsorily Convertible Debentures (“FCD”), each FCD having a face value of Rs. 745 and convertible into one Equity Share of Rs. 10 each in the Company at a price of Rs.745 per Share at anytime within 18 months from the date of allotment of the FCD at the option of the Investor and mandatorily convertible into Equity Shares on the date falling 18 months from the date of allotment. These FCD were issued in July, 2008 after the funds were received.

During the year, Reserve Bank of India (“RBI”) announced a Scheme granting general permission to issuers of Foreign Currency Convertible Bonds (“FCCBs”) to buyback the FCCBs, subject to certain parameters. The Company was amongst the first few to avail of this opportunity. To date, the Company has bought back 105 FCCBs of face value of USD 1,00,000 aggregating USD 10.50 million. The FCCBs bought back were part of the USD 200 million outstanding FCCBs issued in the financial year 2006. The Company also raised Unsecured External Commercial Borrowings (ECB), at competitive cost to re-finance the buyback.

The Company follows a prudent financial policy and aims to maintain optimum financial gearing at all times. The Company’s total Debt to Equity Ratio was 0.56 as at 31^st March, 2009.

The Company has been rated by CRISIL, ICRA Limited (ICRA) and Credit Analysis and Research Limited (CARE) for its banking facilities under Basel II norms.

During the year, CRISIL has assigned a rating of “AA/ Negative Outlook” for Long Term banking facilities. This has been revised from the earlier rating of “AA+/Negative Outlook”. CRISIL’s rating indicates high safety on timely payment of financial obligations. The revision is a reflection of the significant impact of the weakening business environment on the revenues and profitability of your Company’s Automotive and Tractor businesses as also CRISIL’s estimate of the Company’s financial risk profile in view of the ongoing capital expenditure plans.

ICRA and CARE have maintained a Long Term Rating of ‘LAA+’ and ‘CARE AA+’ respectively. CRISIL, ICRA and

CARE have all assigned the highest rating for your Company’s Short Term facilities.

MANAGEMENT DISCUSSION AND ANALYSIS

For most of the year, the global economy faced unparalleled pressures. While the first few months witnessed a sharp rise in the price of oil, food and other commodities, inflationary fears soon gave way to concern about depression and deflation as the financial crisis in the advanced economies snowballed into a global economic crisis of unprecedented magnitude. International trade and financial flows froze and financial institutions crumbled, leading to rising bankruptcies and widespread unemployment across the globe. India is neither insulated nor isolated from global events and has been significantly impacted by this global meltdown. Exports from, and capital flows to the country have contracted sharply, leading to a slowdown in the country’s economic growth. However, in spite of the contraction of many world economies, India is expected to grow close to 6% in the coming fiscal, making it one of the very few countries in the world which would show any growth in the next two years.

Against this backdrop, the Company’s performance has been satisfactory; indeed, the Company has outperformed industry in many of the segments in which it operates.

INDUSTRY STRUCTURE

The Automotive Sector

The automotive industry occupies a place of pre-eminence in the Indian economy, accounting for about 5% of GDP and over 13 mn direct and indirect jobs, and contributing about 17% of indirect taxes

Domestic sales in the segments in which the Company participates - Multi Utility Vehicles (or MUVs) including soft tops, hard tops and pick-ups, Light Commercial Vehicles (LCVs), three wheelers, and C-segment cars - declined by 1.7% during the year over the previous year and stood at 917,260 vehicles. The Company sold 220,213 vehicles in the domestic market during the same period, a growth of 0.6% over the previous year.

MUVs are a family of vehicles capable of versatile applications such as passenger transport, goods transport or a combination of the two. There are six manufacturers of MUVs in India. The Company is the largest manufacturer

of MUVs in India, offering a range of over 20 models. In F-09 industry-wide domestic sales of MUVs were 268,753, a decline of 7.4 % over F-08

LCVs (gross vehicle weight from 3.5MT to 7.5 MT) are used mostly for intra-state movement of goods and short distance transport of passengers. In F-09, 52,705 LCVs were sold in the domestic market – a decline of 13.0% over F-08. The Company competes in this segment through its subsidiary Mahindra Navistar Automotives Limited (MNAL). There are six manufacturers in India in this specific LCV segment.

India is the largest organised market in the world for threewheelers. In F-09 this segment declined by 4.1% over F-08, with sales of 349,719 three-wheelers in the domestic market.

In F-09, the C-Segment of passenger cars sold 246,011 vehicles, a growth of 12% over the previous year. The C-segment is second largest segment of the passenger car market comprising 19% of the total car sales in India. There are nine players competing in this segment.

The Farm Equipment Sector

Agriculture plays an important role in the Indian economy and society. It accounts for a little less than 20% of the country’s Gross Domestic Product (GDP) yet contributes to nearly 60% of employment in rural India.

The Indian tractor market is one of the largest markets in the world by volume, despite a low penetration level of tractors. The domestic tractor industry is fragmented, with about 13 national players and some regional players. In

the current year, all the tractor manufacturers in India together sold 303,921 tractors. Additionally, 38,910 tractors were exported.

The domestic tractor market is traditionally segmented by horsepower into the low horsepower 20 HP - 30 HP segment, the mid segment of 30 - 40 HP and the higher segment of above 40 HP. Most of the major players cater

to all the three segments. However, their relative strengths and market positions differ from segment to segment.

Many factors affect tractor sales including monsoons, availability of irrigation, reservoir water levels, government declared support prices for key crops, commodity prices, crop production expenses (such as seeds, fuel, fertilizer,

pesticides and other costs) and credit availability. The availability of finance is one of the most significant factors influencing tractor demand, as approximately 80% to 90% of tractors are sold through finance from banks and other financial institutions.

The Company’s Farm Equipment Sector (FES), which designs, develops, manufactures and markets tractors for Indian and overseas markets is the largest manufacturer of tractors in India and has sustained its market leadership in the Indian tractor market for over 26 years.

INDUSTRY DEVELOPMENTS

The Automotive Sector

Over the past one year, the global economic environment has undergone significant turmoil. Global economy is expected to shrink in 2009 for the first time in many decades, and may remain weak in the medium term. Financial markets have seen an unprecedented level of stress and volatility. The automobile industry worldwide is

bearing the brunt of this general economic distress – with precipitous decline in volumes, financial losses and significant restructuring. India also witnessed lowered economic growth during the year which impacted the automotive industry adversely.

After several years of strong growth, the Indian automotive industry experienced significant challenges in F-09, particularly in the second half of the fiscal. A sharp deterioration in liquidity conditions in the financial markets significantly reduced availability of credit for automobile buyers. In addition, economic growth slowed down rapidly

over the course of the fiscal year. As a result, F-09 saw a drop in domestic sales of motor vehicles of 5.0%. The commercial vehicle segment was the worst affected with a 21.7% drop in sales, while the three-wheeler segment

declined by 4.1%, and passenger vehicles sales were flat.

Given the importance of the automobile industry to the economy, the government provided active support through fiscal stimulus (particularly by reducing the applicable excise duty) and by making liquidity and credit available. Interest rates and fuel prices were also reduced. As a result, domestic sales showed a partial recovery in the last quarter of the fiscal.

In addition, the automotive industry was also adversely affected by a sharp rise in commodity prices, especially in the first half of F-09. An unprecedented increase in the prices of major input materials, along with the pricing pressures due to the economic slowdown, put significant pressures on the margins of the automobile manufacturers.

The Farm Equipment Sector

The first monsoon (between June and September) of FY 08-09 was 98% of the Long Period Average, resulting in a good Kharif crop. However, during the second half of the year, the country experienced a deficient north-east rainfall (-31%) in 30 of the 36 meteorological districts. In spite of overall lower rainfall and lower reservoir levels in F09, the total food grain production during the year (Rabi + Kharif) is expected to be almost equal to last year at 230 mn tonnes, based on the latest estimates.

Substantial increases in Minimum Support Prices for various crops announced by the Government have positively

impacted rural disposable incomes. In addition, in the 2008-09 Union budget, credit allocation to agriculture saw an increase of Rs.500000 millions to reach Rs.2800000 millions. There was an increase in other outlays for supporting the development of the rural economy. India’s agricultural GDP is expected to have grown by around 2% in F-09.

Yet, the domestic tractor industry was faced with the simultaneous impact of a liquidity crunch (following the global economic crisis), stringent lending norms for farm loans due to higher NPA’s and high interest rates. The sharp rise in raw material prices in the first half of the year with resultant price increases by all tractor manufacturers’ also impacted demand. Hence, the year saw a flat domestic tractor industry which ended the year at 303,921 tractors (+0.6% vs. previous year).

Indian tractor exports totalled 38,910 tractors in F-09, 12.1% lower than last year due to the impact of global economic turbulence, recessionary trends and sharp changes in exchange rates in some markets.

COMPANY’S PERFORMANCE

The Automotive Sector

The Automotive Sector (AS) of the Company is engaged in the Multi Utility Vehicle (MUV) and three-wheeler segments directly. It competes in the Light Commercial Vehicle (LCV) segment through its joint venture subsidiary MNAL, and in the passenger car segment through another joint venture subsidiary Mahindra Renault Private Limited (MRPL). The Company manufactures LCVs for MNAL and passenger cars for MRPL on a contract basis. The Company also distributes these LCVs and cars for the two joint venture companies respectively under a distribution contract for a fee.

Despite the challenging business environment, the Company maintained its vehicle sales. On the domestic sales front, the Company along with its subsidiaries MNAL and MRPL sold a total of 220,213 vehicles (including 44,533 three-wheelers, 8,603 LCVs through MNAL and 13,423 cars through MRPL), recording a growth of 0.6% over the

previous year.

The Company’s domestic MUV sales volumes increased by 3.3%, as against a decline of 7.4% for industry MUV

sales. A record number of 153,653 MUVs were sold in the domestic market in F-09 compared to 148,761 MUVs in the previous year. Indeed, in the month of March 2009, against the backdrop of a tough business scenario, the Company sold an all time record 25,748 vehicles in the domestic market, by undertaking the target in mission mode (christened Mission 25001). Hence, the Company further strengthened its domination of the domestic MUV sub-segment during the year, increasing its market share to 57.2% over the previous year’s market share of 51.3%.

The continued success of the Company’s Bolero range and the launch of the new Xylo (in January 2009) contributed to MUV sales in a significant manner during the year. The refreshed version of the Bolero that was launched in March 2007 continues to attract customers and the Bolero brand continues to be India’s largest selling MUV, for the fourth year in a row. The Company has recently launched a refreshed version of the Scorpio (positioned as “the Mighty Muscular Scorpio”), with an improved value proposition, and has received an encouraging response. The Scorpio became the first brand in the country to offer a BS-IV compliant version to consumers.

In LCVs, subject, through its subsidiary MNAL, has a presence in the 3.5-7.5MT GVW segment of the market. In F-09, the Company’s sales in this segment declined by 17% against a decline of 13% for the industry segment. MNAL is currently developing products to address the full range of the commercial vehicle market. Mahindra Navistar Engines Private Limuted (MNEL), another joint venture company is also in the process of developing a new power train for the commercial vehicle range.

In the passenger car segment, MRPL sold 13,423 cars (Logan), a decline of 48% over the previous year, due to increased competitive activity in its market segment. Industry sales in the C-segment, where Logan competes, increased 12% in F-09

In the three-wheeler segment, the Company’s sales increased 31.3% to 44,533 units, as against a decline of 4.1% in the industry sales. This decline in the three wheeler industry was caused by a significant deterioration in credit availability for buyers. The Company’s growth was on account of the success of the passenger version of the Company’s Alfa three wheeler (launched in Feb 2008). The Company now has a 12.7% market share in the three wheeler segment.

The Company believes that the Indian automotive market is amongst the top growth markets in the world. Hence

the Company is continuing with its expansion plans as envisioned. Construction work at the new manufacturing site at Chakan (near Pune) is in full swing. This state-ofthe- art plant will be set up by Mahindra Vehicle Manufacturers Limited (MVML), a wholly owned subsidiary of the Company. It will have the capabilities to manufacture the Company’s range of new generation MUVs as well as commercial application vehicles. It will also manufacture CVs for MNAL. Another subsidiary, MNEL (Mahindra Navistar Engines Limited) will manufacture engines at this facility.

In the global markets, the Company’s sales declined 31% in F-09 to 8,501 units due to the challenging macroeconomic conditions and trade environment. The Company also sold 1,611 Logan cars in overseas markets through its subsidiary MRPL.

Going forward, growth in overseas markets is a strategic focus area for the Company and all plans for overseas

expansion are on track. The Company continues to expand its footprint in niche overseas markets with a strong

emphasis on building the MAHINDRA brand. In F-09, the Xylo was launched in South Africa. The Company formed a new joint venture Mahindra Automotive Australia Pty. Limited, to focus on the Australian Market. The Company also made its presence felt at several international motor shows such as ones in Italy (Bologna), Chile, Johannesburg (South Africa) and Sao Paulo (Brazil).

In Operations, the Company focused on rigorous cost reduction through productivity improvement and waste reduction. Energy conservation was an area of particular focus. The impact of these efforts has been recognized through a plethora of awards. The Zaheerabad plant was awarded the National Energy Conservation Award (1^st

rank) for the second consecutive year. The Nashik plant was awarded the National Certificate of Merit, instituted by the Bureau of Energy Efficiency and Ministry of Power, in recognition of its energy conservation initiatives and also won the CII National Award for Excellence in Water Management.

Quality improvement and customer satisfaction is a thrust area for the Company. The Company maintained its standing at 3^rd rank on Sales Satisfaction and was ranked 4^th on Customer Satisfaction, in syndicated studies conducted by J.D. Power.

The Farm Equipment Sector

16^th February, 2009 and from the said date it operates as a part of the Farm Equipment Sector of the Company, as its Swaraj Division. Therefore, the current year business figures of the Company include PTL’s financials for the period from 1^st August, 2008 to 15^th February, 2009. PTL is a good strategic fit for the Company. Its strong ‘Swaraj’ brand equity and nationwide dealer network complement the Company’s existing network, sound financial fundamentals and dedicated and experienced workforce.

Following the acquisition, the Company has firmly established its dominance in the Indian tractor industry with 40.8% market share marking the 26th consecutive year of leadership in the Indian tractor industry. In addition, the Company has reaped the benefits of enhanced capacities and economies of scale along with an expanded network and product portfolio.

As a result, in this period, the Company achieved a production of 119,098 tractors. In addition, 52,131 engines were produced for the Mahindra Powerol brand. Following the merger, the two tractor manufacturing plants of the

erstwhile PTL at Mohali and Chappercheri along with its foundry facility at Sialba Majri, near Mohali, stands added

to the existing tractor manufacturing plants of the Company at Rudrapur, Nagpur, Kandivali and Jaipur.

The Company recorded sales of 120,202 tractors against 99,042 tractors sold in the previous year. This included domestic tractor sales of 113,269 tractors - a growth of 25.1%, compared to 90,509 tractors sold in the previous year, against the backdrop of a flat industry scenario. In the farm mechanization space, besides tractors, the Company sold farm implements and other equipment under both the ‘Mahindra’ and the ‘Swaraj’ brand. The Swaraj Division plant at Chappercheri is also an established producer of Harvester combines in the organized sector in India.

In 2008, under the Mahindra brand, the Company had launched the 295 DI Super Turbo tractors in the 30 to 40 HP segment, in a few select states. This model has been well appreciated by the customers for its fuel efficiency

and power and this year 295DI was offered across the country. Upgraded models of the large selling 475DI and 575DI models were also introduced.

The Arjun Ultra-1 has now been transformed into a versatile product which has demonstrated superlative performance both on and off the field. The Mahindra Shaan - a 25 HP multi-utility tractor launched by the Company in 2007 - has proved very successful in the brick kiln segment.

The Company is the first tractor manufacturer in the country to offer radial tyres with its tractors. Under the ‘Swaraj’ brand, a new series called “XM” (Xtra Mileage) has been launched, which has a better fuel efficiency, new look and added features of convenience and comfort. This has been well received in the market. To cater to the market requirement in the less than 30 HP segment, the Company has re-launched model 722 Super with

improvements in ergonomics, steering effort, operator comfort and usability.

FES has been awarded the prestigious Golden Peacock Award ’08 in the Innovative Product/Services category for its in-house development of a Load Car, the first of its kind in Indian tractor industry.

Two of its advertising campaigns (for ‘Bhoomiputra 235 DI’ and ‘Arjun Ultra-1’) won Golds at the 2^nd Rural Marketing Awards, organised by the Rural Marketing Association of India (RMAI). FES also bagged five awards, the most by a single brand, at the 1^st WoW Awards organised by EventFaqs - a renowned web portal, to celebrate excellence in Events and Experiential Marketing.

The Company has launched a unique initiative called Samriddhi that aims to bring the latest innovative farming technologies within the reach of the Indian farmer. This initiative includes soil and water testing labs, productivity

demo farms, agri-clinics and counselling centres. One of the projects under this program - ‘Project Bhoomi’ - (Mobile Soil Testing Laboratory), was awarded the ‘Order of Merit’ by the Promotion Marketing Awards of Asia ‘08 fraternity in the category of ‘Best Cause’ Campaign.

The Company’s tractors are now being sold in 6 continents of the world. The Company has continued to focus on the African states. Africa is one of the Company’s largest export markets apart from the US. The Company has set up an assembly plant in Ghana, inaugurated by the President of that country. This is in addition to the assembly plants set up in Tchad and Mali, Nigeria and Gambia last year. This year, the Company has made forays into the new African markets of Botswana, Egypt, Niger, Congo and Brazzaville. To meet the demand of the higher HP segment in Africa, the Company launched the Mahindra 705DI as a ‘value for money’ offering in the 70 HP segment. The 8000 tractor series was launched in Africa in 2008. The product’s success has now led to its introduction in Latin America and Australia.

Other new markets were Yemen in the Middle East, Cambodia in South East Asia and Argentina in Latin America. Under the Mahindra brand, the compact range of tractors (35 series) was introduced by the Company in the US market and in ANZ. The neighbouring countries of Sri Lanka, Bangladesh and Nepal continue to be large overseas markets for the Company. As a result of the global economic slowdown, the Company exported 6,933 tractors i.e. 19% less than last year.

The Company has strengthened its presence in the growing Chinese tractor market by entering into a JV in China with the Chinese Jiangsu Yueda Group. This is the Company’s 2^nd JV in China. The JV’s manufacturing facility is located in Yancheng city, Jiangsu Province and sells tractors under the Jinma brand. Jinma’s product portfolio includes tractors ranging from 16 - 125 HP. The new entity is named Mahindra Yueda (Yancheng) Tractor Company Limited (MYYTCL).

The Company’s first JV in China, Mahindra (China) Tractor Company Limited (MCTCL) was able to grow by 21% over the previous year despite the stagnant industry situation. This was enabled through the launch of Mahindra branded red tractors in the domestic market and the expansion of the product range up to the 40HP segment on the current platform. This year, MCTCL made the change over from selling tractors under the MCTCL Feng Shou brand to the new Mahindra Feng Shou brand. In line with the Mahindra strategy of customer service as a differentiating factor, MCTCL launched customer support initiatives to support Mahindra brand. MCTCL has embarked on a new product development program to expand into higher HP segments. Products up to 55HP are being seeded in select domestic markets before commercial launch in the next financial year. On the exports front, MCTCL opened up new markets in East Europe, Africa and Iran and has also completed product homologation for European markets. All these initiatives will enable MCTCL to gain a significant presence in the China tractor industry.

In the US, the 0-80 HP tractor industry declined by 16% between April 2007 and March 2008. The economic crisis

and the collapse of the housing market are the prime reasons. In this challenging environment, the sales of Mahindra USA Inc. (MUSA) declined by 32 %. On a positive note, MUSA was rated highest in Overall Satisfaction

amongst dealers in the US market, in a survey conducted by North American Equipment Dealers Association. This is a significant achievement in a market in which every leading global tractor manufacturer has a presence.

Under the Mahindra Powerol brand, the Company has sold 52,350 engines in this financial year, as against 31,922 engines last year - a growth of 64%. Mahindra Powerol has retained its leadership position in the genset market that caters to the telecom industry adding prestigious clients to its list such as Indus Towers, Xcel Telecom, TCS, 3i Infotech, Nutek, Barista, Tanishq, Levis, Kotak Life and Maharashtra State Road Transport Corporation (MSRTC). To ensure a high degree of interaction with corporate customers, your Company has introduced the web based MAGIEC interface.

The Company expanded the Mahindra Powerol genset product range from the prevalent 62.5 kVA to 140 kVA. In

addition, it has also launched engines for cranes, locomotives and marine applications. Mahindra Powerol also has a presence in the retail segment, with 55 branded show-rooms operated across India. Mahindra Powerol has

initiated exports to Nepal, Bangladesh, UAE and Brazil. It opened its first international showroom in Kathmandu.

After winning the most coveted International Quality accolades – the Deming Prize and the Japan Quality Medal- FES has continued on the TQM path with its own Assessment Model - the Mahindra Excellence Model. To further strengthen its manufacturing capability, the sector is pursuing the path of Total Productive Maintenance (TPM) under the guidance of Japan Institute of Plant Maintenance. The rich TQM experience of FES is now horizontally deployed in the Swaraj Division to accelerate the implementation of best practices. The FES journey towards business excellence continues with unabated vigour.

Plants of the Mahindra and Swaraj division are already certified for various internationally recognized Quality and Safety Management Systems. From this year, the Powerol Business is also covered under certification for the ISO 9000: 2000

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010

(Rs. in Millions)

Particulars	31.12.2010 Quarter Ended	31.12.2010 Nine Months Ended
Operating Income
Gross sales / Income from Operations	65954.500	180369.500
Less: Excise Duty / Sale Tax recovered	5209.900	15270.600
a) Net Sales / Income from Operations	60744.600	165098.900
b) Other Operating Income	466.300	2056.600
Total Operating Income	61210.900	167155.500
Expenditure
(a) (Increase)/decrease in Stock in Trade	323.700	(1389.500)
(b) Consumption of Raw Materials	37773.500	105713.800
(c) Purchase of Traded goods	4260.700	10432.500
(d) Employees Cost	3475.300	10184.700
(e) Depreciation	1021.800	2968.000
(f) Other Expenditure	6140.100	16260.900
Total Expenditure	52995.100	144180.400
Profit / (Loss) From Operations before other Income Interest & Exceptional Items	8215.800	22975.100
Other Income	418.700	2621.200
Profit/(Loss) before Interest and Exceptional items	8634.500	25596.300
Interest	(27.100)	(344.600)
Profit / (Loss) after interest before Exceptional items	8661.600	25940.900
Exceptional Items	1174.800	1174.800
Net Profit/(Loss) after exceptional item	9836.400	27115.700
Tax Expenses	2489.600	6560.100
Net Profit/(Loss) after tax	7346.800	20555.600
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )	2935.600	2935.600
Reserve and Surplus excluding Revaluation Reserve	0.000	0.000
Basic Earning per Share	12.59	35.91
Diluted Earning per Share	12.28	34.39
Public Share Holding
Number of Shares	427466428	427466428
Percentage of Shareholding	71.65%	71.65%
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	12200876	12200876
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	8.98%	8.98%
- Percentage of shares(as a % of the total share capital of the company)	2.05%	2.05%
b) Non-encumbered
- Number of Shares	123591677	123591677
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	91.02%	91.02%
- Percentage of Share (as a % of the total share capital of the company)	20.72%	20.72%

Segment wise Revenue, Results and Capital Employed as on 31.12.2010

(Rs. in Millions)

Particulars	31.12.2010 Quarter Ended	31.12.2010 Nine Months Ended
1. Segment Revenue
Automotive Segment	34715.900	96752.900
Farm Equipment Segment	26382.800	69971.300
Other Segments	209.600	694.600
Total	61308.300	167418.800
Less : Intersegment Revenues	97.400	263.300
Net Sales / Income from Operations and Other Operating Income	61210.900	167155.500

2. Segment Results
Automotive Segment	4265.600	12985.600
Farm Equipment Segment	4871.500	12327.100
Other Segments	6.000	35.900
Total	9143.100	25348.600
Less :
Interest Expenses (Net)	(27.100)	(344.600)
Other un-allocable expenditure net off un-allocable income	(666.200)	(1422.500)
Total Profit Before Tax	9836.400	27115.700

3. Capital Employed (Segment assets – Segment liabilities)
Automotive Segment	28856.100	28856.100
Farm Equipment Segment	11323.500	11323.500
Other Segments	274.100	274.100
Total Segment Capital Employed	40453.700	40453.700

Notes :

Other Income includes dividend received from subsidiaries / joint ventures.
Interest Expenses *Net) is after adjusting Interest income.
Exceptional item of Rs.1174.800 Millions for the quarter is due to a profit on exercise of a put option the company held on a certain long term investments.
During the quarter Foreign Currency Convertible Bonds (FCCB Bonds 2011) aggregating USD 171.80 million have been converted into 16533895 equity share of Rs.5/- each at a predetermined premium of Rs.456.02 per share, thereby increasing the paid up Equity Share Capital of the company and the Securities Premium Account by Rs.82.700 Millions and Rs.7539.800 Millions respectively. Also Bonds aggregating USD 1.10 million have been repaid.
Each Ordinary (Equity) Share of the face value of Rs.10 each fully paid up was sub-divided into two Ordinary (Equity) Shares of Rs.5 each fully paid up in March, 2010. Accordingly, all comparative references to the number of shares in the previous period have been resisted to make them comparable. In accordance with Accounting Standard 20 on Earning per Share, the company has given affect to the above mentioned sub-division of shares in computing the earning per share for the previous period.
Other Segments include Defence Services, Special Services Group etc.
During the quarter, the company received 7 investor complaints, all of which have been resolved by the end of the quarter.
Previous figures have been regrouped / restated wherever necessary.
The above results were approved by the Board of Directors of the company at the Board meeting held on 8^th February, 2011.
In compliance with Clause 41 of the Listing Agreement with the Stock Exchange, a limited review of the results for the quarter ended 31^st December, 2010 has been carried out by the Statutory Auditors.

CONTINGENT LIABILITY

Guarantee Given by the company

(As on 31.03.2009)

Rs. in millions

	Amount of Guarantees	Outstanding amounts against the Guarantees
For Employees	10.500	*
For other companies	1684.600	1636.700

NOTES

In the previous year, gain of Rs.1727.300 millions arising from the schemes of arrangement (merger) between the Company’s subsidiaries Mahindra Stokes Holding Company Limited (MSHCL), Mahindra Forgings Overseas Limited (MFOL) and Mahindra Forgings Mauritius Limited (MFML) with Mahindra Forgings Limited (MFL); and between Plexion (India) Private Limited with Mahindra Engineering Design and Development Company Limited (MEDDCL) approved by the High Court of Bombay. The schemes are operative from the appointed date of 1^st April, 2007. Consequently MFL became a subsidiary of the Company and MSHCL, MFOL, MFML and Plexion (India) Private Limited, ceased to be subsidiaries of the Company. In compliance with Accounting Standard (AS) 13 - ’Accounting for investments’, the Company is required to value the additional shares received of MFL and MEDDCL, by referencing them to the fair value of the shares of MSHCL, MFOL, MFML and Plexion (India) Private Limited respectively.

Scheme of Amalgamations

(a) Pursuant to the Scheme of Amalgamation (the scheme) of Mahindra Holdings and Finance Limited (MHFL) a wholly owned subsidiary of the Company, with the Company as sanctioned by the Honourable High Court of Bombay vide its order dated 18^th July, 2008, the entire business and all the assets and liabilities, duties and obligations of MHFL were transferred to and vested in the Company, from 1^st February, 2008 (the appointed date). The scheme became effective on 11^th August, 2008.

The accounting for the amalgamation was done as per the pooling of interest method as modified under the scheme and approved by the Honourable High Court and the same has been given effect to in the financial statements as under :

(i) The assets, liabilities and reserves of MHFL were recorded in the books of the Company, at their book values.

(ii) The Company transferred, out of its total holding in MHFL as on 1^st February, 2008, 5,13,10,208 shares to a trust, to hold the shares and any additions or accretions thereto exclusively for the benefit of the Company and the Company has under the scheme issued to the trust one share in itself for every four shares held by it in MHFL. The balance shares held by the Company in MHFL were cancelled.

(iii) The Company credited to the existing Investment Fluctuation Reserve Account Rs.1296.100 millions, being the excess of the value of the net assets of MHFL over the face value of the shares allotted, the face value of the shares cancelled and the amount of General Reserve and Profit and Loss Account of MHFL transferred to the Company. MHFL was engaged in the business of investing and financing. The MHFL profit after tax of Rs.307.300 millions for the period 1^st February, 2008 to 31^st March, 2008, has been recognised in the current year and disclosed separately in the Profit and Loss Account.

Had the scheme not prescribed the above treatment, the General Reserve of the Company would have been higher by Rs.1296.100 millions and the Investment Fluctuation Reserve Account lower by the same amount.

FIXED ASSETS

· Land Freehold

· Land Leasehold

· Buildings

· Plant and Machinery

· Furniture and Fitting

· Vehicles, Cycles etc.

· Development Expenditure

· Software Expenditure

WEB DETAILS

News

Mahindra Jeep: Another American-Indian Deal in the Works?

Mahindra and Mahindra, India's leading manufacturer of sport-utility vehicles and pickups, reportedly is discussing the possible acquisition of the Jeep brand from Chrysler, even as it prepares to launch its vehicles in North America in mid-2009.

Rumors of the talks between Mahindra and Chrysler, former partners in India, were reported in the Economic Times, one of India's major financial publications.

The family-owned Mahindra trading group got into the auto business during World War II as a contract assembler of the Willys Jeep, and later licensed production of the CJ series. Mahindra still builds a CJ-derived model called Commander in both soft-top and hardtop versions.

In recent months, Mahindra has been outbid by rival Indian automaker Tata for the right to acquire Jaguar and Land Rover from Ford. Mahindra also has withdrawn from a billion-dollar deal to assemble small cars in partnership with Renault-Nissan in Chennai. A Mahindra-Ford alliance in India was dissolved several years ago.

According to the Economic Times, Mahindra and Chrysler now are discussing several options, including one scenario that would see Mahindra doing some contract engineering work in India for the U.S. automaker, as well as the possibility of the companies exchanging equity stakes.

At the recent Delhi auto show, Mahindra executives said the company is pursuing an aggressive product expansion program that will see the launch of several new platforms and vehicles over the next three years, including an entry-level SUV designed to seat five passengers and powered by a small turbodiesel engine. Later this year, it will unveil the all-new Ingenio SUV, which will be joined in 2009 by a pickup derivative.

In the meantime, Mahindra is gearing up to sell versions of its older Scorpio SUV and pickup next year in North America, through an independent distributor, Global Vehicles USA, based in Alpharetta, Georgia. The distributor has said it may assemble the pickup, which will be rebranded as the Mahindra Appalachian, in Ohio from knocked-down kits to avoid a 25 percent tariff imposed on imported trucks. The company also has said it plans to offer a diesel-hybrid powertrain in 2010.

PRESS RELEASE

Mumbai

April 16, 2010

M And M AND RENAULT ANNOUNCE RESTRUCTURING OF THEIR JV

MAHINDRA RENAULT PVT. LTD. (MRPL)

Mahindra and Renault today announced the restructuring plans for their 51:49 JV, Mahindra Renault Private Limited, through which the Logan car is manufactured.

Under a Framework Agreement, which was signed today by senior executives of both companies, the parties have in principle agreed that M and M will take over the operations of the company. Renault will continue to support M and M and the product through a License Agreement and supply of key components, including the engine and transmission. As previously stated by leaders of both companies, the aim of the restructuring is to ensure continuity and build on the positive customer equity that exists for the Logan in India.

“Renault is fully committed to the success of the Logan in India where it has achieved a high level of customer satisfaction. We will continue to extend our support to Mahindra to help it gain market share,” said Mr. Katsumi Nakamura, EVP, Asia / Africa for Renault s.a.s. He went on to add, “We reiterate our long

term commitment to India through the recent inauguration of their manufacturing facility in Chennai and our plan to launch a range of Renault cars from 2011”.

“The new agreement between Mahindra and Renault will give us the opportunity to chart out a new strategy to help drive the Logan brand in India which will also include engineering changes, in keeping with customer requirements,” said Dr. Pawan Goenka, President, Automotive & Farm Equipment Sectors, Mahindra and Mahindra Limited..

Key features of the restructuring are:

Mahindra and Mahindra (M and M) will buy Renault’s equity stake in MRPL, resulting in MRPL becoming a 100% Mahindra group owned company

M and M will be responsible for the management of the Logan in the Indian market

The Renault name and logo will continue to be used on the Logan till the end of this calendar year

Over the course of a transition period of about 18 months, M&M will:

- Rename the car to a Mahindra owned brand name and the car shall then only display the Mahindra logo

- Create a refresh and other modifications in line with customer expectations

- Execute additional localisation to reduce costs

Other vehicles built on the Logan platform by Renault globally, such as the Sandero, are not included in this new agreement.

M and M and Renault will continue to work together on an ongoing basis to explore areas of synergy for mutual benefit on several fronts.

Mahindra Renault Private Limited was established as a 51:49 JV between M and M and Renault sas in 2005 to manufacture and sell the Logan car. The Logan is manufactured at Mahindra’s plant in Nashik and sold through more than 100 Mahindra dealer outlets around the country.

The Logan was commercially launched in the Indian market in July 2007 and has more than 44,000 satisfied customers in India today. More than 2,600 units have also been exported to South Africa and Nepal.

PRESS RELEASE :

Mahindra First Choice Wheels inaugurates authorised dealership in Lajpat Nagar, New Delhi

July 17, 2010, New Delhi:

Mahindra First Choice Wheels Limited (MFCWL), India’s largest multi-brand pre-owned car company, today inaugurated its authorised dealership in Lajpat Nagar, New Delhi. The showroom, JKM Auto Private Limited was inaugurated by Mr. Rajeev Dubey, President (HR, After-Market and Corporate Services) and Member of the Group Executive Board, Mahindra and Mahindra Limited.

“I am delighted to inaugurate our newest dealership in Delhi, where Mahindra FirstChoice has already established itself as a leading multi-brand pre-owned car company. The pre-owned car market in Delhi is growing at a rapid rate and has immense scope for growth. With its extensive infrastructure and the array of services it offers to customers, JKM Auto Pvt. Limited is well poised to tap the potential of this market,” said Mr. Rajeev Dubey.

“Our showroom is spread across 1800 sq. ft. with a parking area of 2,500 Sq.ft.and will display a wide variety of cars, catering to a range of budgets. Services offered at JKM Auto will include purchase and sale of pre-owned cars, car finance and insurance, a commitment card which covers both 24X7 road assistance across the country and a conditional warranty on pre-owned cars, accessories and RTO transfer,” said Mr. Pankaj Nagpal, Managing Director, JKM Auto Private Limited.

The size of the pre owned car market in Delhi-NCR is approx. 20,000 cars per annum, implying great potential for companies such as Mahindra FirstChoice Wheels. MFCW’s current dealer strength in North India stands at 11 Dealerships.

The Mahindra FirstChoice value proposition

Mahindra FirstChoice is the country’s preferred pre-owned car mart and is India’s only organized multi-brand player, with 125 outlets in 80 towns across India. The company plans to expand this number to 300 outlets in the next three years. This implies that customers will soon be able to choose from a range of certified pre-owned cars throughout India, including the metros and tier-2 towns and cities.

Tremendous attention to detail is required to ensure that each pre-owned car meets a high level of quality. Before purchasing the car, a trained engineer thoroughly inspects the vehicle and also sees to it that all papers are in order. After purchase, every car is refurbished and undergoes an extensive 118 point quality check by a trained engineer, as part of the company’s robust certification process. The objective behind the care and diligence exercised is to present the customer with a car in mint condition.

In short, buying a pre-owned car from Mahindra FirstChoice offers several advantages, including quality assurance, safety and a hassle-free driving experience.

Mahindra FirstChoice also offers 24x7 Road Side Assistance and warranty on certified pre-owned cars. The warranty, subject to specific terms and conditions, covers the important parts of the car. The 24x7 Road Side Assistance, subject to specific terms and conditions, assures the certified used car buyer that should the car break-down, he will be provided assistance. This warranty and road side assistance gives tremendous peace of mind to buyers.

Mahindra FirstChoice also has retail finance relationships with major banks and NBFCs in the country. As an industry first, Mahindra FirstChoice has recently partnered with Syndicate Bank to offer consumers finance rates comparable to those for new cars.

Mahindra FirstChoice also has a website – www.mahindrafirstchoice.com – which offers consumers the luxury of buying and selling pre-owned cars from the comfort of their own homes.

About The Mahindra Group

Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $7.1 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image.

Mahindra is the only Indian company among the top tractor brands in the world. It is today a full-range player with a presence in almost every segment of the automobile industry, from two-wheelers to CVs, UVs, SUVs and sedan. Mahindra recently acquired a majority stake in REVA Electric Car Company Limited. (now called Mahindra REVA), strengthening its position in the Electric Vehicles domain.

The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam.

Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.

For further information, please contact:

Roma Balwani

Senior Vice President & Head - Corporate Communications

Mahindra & Mahindra Ltd.

Mumbai, India

Phone: (+91-22) 2490 1441

Email: balwani.roma@mahindra.com

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.59
UK Pound	1	Rs.73.43
Euro	1	Rs.64.81

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		69

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

10.98

6.41

15.51

8.25

32.41

13.98

0.36

0.20

1.08

1.68

1.16

1.06