Introduction of Mahindra Finance

Two decades ago, Mahindra and Mahindra Financial Services Limited (MMFSL)
commenced its journey in the rural non-banking finance industry. And with that
was born a vision to transform rural and semi-urban India into a self-reliant,
flourishing landscape. Since then, we have come a long way, empowering
millions of ambitious individuals with personalised finance for a wide range of
vehicles, home development requirements and many other diverse endeavours
all to help them live their dreams and Rise in life.
At Mahindra Finance, we are guided by a firm belief in people, their dreams, and
their potential to achieve those dreams. Hence, our socially inclusive business
model facilitates loans to customers based not on their current financial status, but
their future earning capacity. This philosophy has instilled a sense of confidence
in the minds of rural and semi-urban India a confidence that allows them to
believe that no dream is too big. Today, as one of the leading non-banking finance
companies, we are proud to have touched over 3 million lives.
During the course of our journey, apart from emerging as the top tractor financer
in India, we have constantly strived towards developing skill sets of the local
population. Which is why, we provide employment to over 16,000 people in over
700 branches across India. This not only ensures equal growth opportunity for all,
but also enables us to serve our customers better through local understanding and
expertise.
So be it a humble farmer or a budding entrepreneur we are committed to
empower every individual with resources to help their dreams see the light of day.


Our Vision
To be a leading financial services provider in semi-urban and rural India.
It isn't a matter of chance that we are one of India's leading non-banking finance
companies. A clear vision and determined effort has helped us develop a set of
competencies that not only sets us apart, but also helps us propel ahead with
greater force and self-assurance.

Employee Strength

In-depth Knowledge
Business Model
Large Base of Customers
Strong Parentage
Customer Needs
Wide
Network

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

Core Values
Our Core Values are influenced by our past, tempered by our present, and will
shape our future. They are an amalgam of what we are and what we want to be.
Professionalism
Good Corporate Citizenship
Customer First
Quality Focus
Dignity of the Individual


Rise Philosophy
Core Purpose
We will challenge conventional thinking and innovatively use all our resources to
drive positive change in the lives of our stakeholders and communities across the
world, to enable them to Rise.
Brand Pillars
Accepting No Limits
Alternative Thinking
Driving Positive Change
Core Values
Good Corporate Citizenship | Professionalism
Customer First | Quality Focus | Dignity of the Individual

History
The history of Mahindra Finance has been one of continuous ascent where our
effort to empower our customers has been a constant element. A strong set of
values, an evolved lineage and a group of highly motivated individuals is what we
started with.
What followed was a series of events that helped us grow from strength to
strength. And two decades that witnessed many dreams across the nation see the
light of day. Come, walk with us through the journey of time and take a glimpse
of how Mahindra Finance grew with all those who believed in it.
Board of Directors
Steering Committee
The board consists of eight noted directors vested with the charge of general
supervision, direction and management of the operations of our company. The
primary responsibilities of the Board of Directors include:
Overseeing high standards of corporate governance and compliance with
various laws
Overseeing our financial management and approving various lines of
business
Shaping our policies and procedures
Monitoring our performance and evolving the growth strategy
Setting up counter-party and other prudential risk management limits
The Board of Directors:

Mr. Bharat N. Doshi
Chairman

Mr. Uday Y. Phadke
Director

Mr. Ramesh Iyer
Managing Director

Mr. Dhananjay Mungale
Independent Director

Mr. M. G. Bhide
Independent Director

Mr. Piyush Mankad
Independent Director

Mrs. Rama Bijapurkar
Independent Director

Mr. V. S. Parthasarathy
Director












The Mahindra Group

The Mahindra Group focuses on enabling people to rise through solutions that
power mobility, drive rural prosperity, enhance urban lifestyles and increase
business efficiency.
A USD 16.7 billion multinational group based in Mumbai, India, Mahindra
employs more than 180,000 people in over 100 countries. Mahindra operates in
the key industries that drive economic growth, enjoying a leadership position
in tractors, utility vehicles, after-market, information technology and vacation
ownership. In addition, Mahindra enjoys a strong presence in the agribusiness,
aerospace, components, consulting services, defence, energy, financial services,
industrial equipment, logistics, real estate, retail, steel, commercial vehicles
and two wheeler industries.
In 2012, Mahindra featured on the Forbes Global 2000 list, a listing of the biggest
and most powerful listed companies in the world. In 2013, the Mahindra Group
received the Financial Times 'Boldness in Business' Award in the 'Emerging
Markets' category.






Mutual Fund Investments in Mahindra Group

Fixed Deposits
Mutual Funds
Mutual Fund - Product Details
Mutual Fund - Forms

In today's time, we all realise the need to move from just 'saving' to 'investing' our
money in the right areas. It's only then that we help our money to achieve its
potential for growth. And mutual funds are where your money can really flourish
and easily beat the inflation. At Mahindra Finance, we recognise this opportunity
and have designed various schemes to help you invest your money and gain the
most from it.




Fund Distribution (FINSMART)
Our Mutual Fund Distribution team started its operation in September 2005, and
since then, has spread widely across the Southern, Western and Northern states of
India.
The entire effort here is to provide you with end-to-end solutions to help you
achieve your financial objectives in a hassle-free manner.
When it comes to investing, we understand that everyone has unique needs based
on their own financial objectives and risk profiles. And while many investment
avenues are open to investors, it is usually seen that in the longer run, equities
typically outperform the others. Which is why, we believe that systematic
investment in equity has the potential to help your money reap maximum returns
and in turn, create more wealth for you in a shorter span of time.
However, investing in equity requires thorough understanding of the market and
its myriad complexities. This is where we step in with our expertise. Our advisors
carefully understand your investment objectives and risk appetite. They
accordingly help you allocate your money in schemes that are best suited for your
unique needs. This way, you can hang up your boots, lie back and watch your
money do all the hard work.




Risk Documentation
Mutual fund investments are subject to market risk. Please read the offer
document carefully before investing.
This document has been prepared on the basis of publicly available information,
internally developed data and other sources believed to be reliable. Mahindra &
Mahindra Financial Services Ltd, ('MMFSL') does not warrant its completeness
and accuracy. Whilst we are not soliciting any action based upon this information,
all care has been taken to ensure that the facts are accurate and opinions given fair
and reasonable. This information is not intended as an offer or solicitation for the
purchase or sale of any financial instrument receipt of this information should rely
on their own investigations and take their own professional advice. Neither
MMFSL nor any of its employees shall be liable for any direct, indirect, special,
incidental, consequential, punitive or exemplary damages, including lost profits
arising in any way from the information contained in this material.
MMFSL and its affiliates, officers, directors, and employees, including persons
involved in the preparation or issuance of this material may from time to time,
have long or short positions in, and buy or sell the securities thereof, of company
mentioned herein. MMFSL may at any time solicit or provide, credit, advisory or
other services to the issuer of any security referred to herein, Accordingly,
information may be available to MMFSL, which is not reflected in this material,
and MMFSL may have acted upon or used the information prim to, or
immediately following its publication.



Features & Benefits
Equity Mutual Funds: Predominantly investing in equity and equity-related
instruments (Diversified)
Sector Funds: Technically called Thematic Funds, investing in particular
sectors
Index Funds: Investing in BSE listed stocks, managing the funds passively
Fund of funds: Investing in the best performing mutual funds
Tax Saver Mutual Funds: Section 80 C benefits, where the invested amount
is locked for three years
Debt Mutual Funds: Investing in government-related instruments
Monthly Income Plans: Where the monthly dividend is paid back to the
investor
Liquid Funds: Investing in money market funds with high liquidity
Floating Rate Short term Funds: Invests in debt securities, money market
instruments & floating rate instruments with maturity profile of three
months and upto 2 years
Gilt Funds: Investing in government-related securities
Fixed Maturity Plans: Fixed returns up to the maturity period
Gold Exchange Traded Funds: Predominantly investing in gold commodity
stocks
New Fund Offers: The new funds launched by Fund Houses at a face value
of Rs.10



Eligibility & Documentation

Anybody who would like to invest in mutual funds can invest or start
saving in mutual funds. There is no age, sex or income barrier for
investment
SEBI has made a few changes to the KYC norms after January 1
st
, 2012.
These changes will be effective from December 1
st
, 2012. So all investors
who have complied with their KYC norms prior to January 1
st
, 2012 need
to complete the additional KYC formalities.
KYC Documents: Duly signed KYC form with supported documents such
as self attested PAN card, ID proof, address proof along with 1 photograph.
A photocopy of the KYC documents is mandatory for all mutual fund
investments.

Fees and Charges
There are no administrative and investment advisory charges incurred by
Mahindra Finance. However, as per SEBI regulations, depending on the Mutual
Funds Schemes, investors have to pay an entry/exit load for each investment.


FAQs
How do I invest in mutual funds and what is the procedure?
You can invest using any of the following investment procedures:
Your respective relationship executive will assist you with all your
investment requirements, at your door step
You can walk into any Mahindra Finance branch and meet the respective
relationship executives to assist you with your investments
You have to fill in the application form and hand it over to the relationship
executive along with a copy of your KYC documents and a cheque/DD in favour
of the scheme in which you want to invest.














Invest in Fixed Depositsof Mahindra Group
Fixed Deposits
Fixed Deposit - Product Details
Fixed Deposit - Forms
Fixed Deposit - Contact Us
Fixed Deposit - Interest Rates
Mutual Funds

FI XED DEPOSI T
Earn more on your savings. Apply for a Fixed Deposit now!


In these uncertain times, get the most of your hard-earned money without the risk
of losing it. Invest your money in our Fixed Deposit schemes that offer you highly
competitive interest rates and help it grow consistently over a period of time.

Features & Benefits
The MMFSL Fixed Deposit has a Crisil rating of 'FAAA', which indicates a
high level of safety
Cumulative as well as non-cumulative options available
0.25% additional rate for senior citizens & Employees Relatives.
0.35% additional interest for all Mahindra group company employees and
Employees Relatives

For Resident Individuals
ID & Address proof
Passport
PAN Card
Voters Identity Card
Driving License
Bank Pass book with photo
Aadhaar Card
Any other Govt/Regulator approved ID proof
Cancel cheque leaf for Bank account verification.
Incase the address mentioned above document differs from the current address, a
copy of anyone of the following documents to be furnished as proof of residential
address.
Telephone bill
Bank account statement
Letter from any recognised public authority
Electricity bill
Ration card
Letter from employer
For Companies
PAN Card
Adress Proof (Bank statement, Telephone Bill)
Certificate of incorporation
Memorandum of Article & association & Latest Board resolution with
specimen signatures.
Authorized Signatory list
Photograph of the signatories
Cancel cheque leaf for Bank account verification.
ID & Address Proof of Authorized signatories
For Non-Resident Indians (NRI)
Passport with valid visa
Overseas employment letter (optional for confirmation of residential status
and overseas address)
A PIO card to establish Indian Origin, if it is a foreign passport.
Pan card
A local address proof if different from the passport address
a) Bank account statement or passbook
b) Local Property papers with registration deed
c) EB Bill card
d) Voter Id or Driving License
Tax Residency Certificate from the Income Tax department of the country
the investor is a resident
Copy of the passport as of the beginning of the current financial year and
end of financial year
For Partnership Firms
PAN Card
Address Proof (Bank statement, Telephone Bill)
Partnership Deed
Resolution copy
ID &Address Proof of all Authorized Signatories
Photograph of the signatories
Cancel cheque leaf for Bank account verification.
For Trusts and Foundations
Names of trustees, settlers, beneficiaries and signatories
Names and addresses of the founder, the managers/directors and the
beneficiaries
Telephone/fax numbers
Please note that we accept deposits from registered trust only and our investment
has not qualified under Sec 11(5) of IT.
For Investment of Rs 1 crore and above, declaration about the source of income
required.
Charitable Trust
Copy of the Registration Certificate AND/OR 12(A) Certificate issued by
Income Tax Dept.
Acknowledgment of registration application if applied for.
Pan Card copy
Address proof
List of signatories
Board Resolution/Consent letter from Trustees
Individual KYC of all Trustees
Photographs .ID & Address proof of Signatories
Cancel cheque leaf for Bank account verification.
Trust Deed
Please note Mahindra & Mahindra Financial Services is not registered U/S 11(5)
of income tax act, hence Charitable Trust may invest in Mahindra Finance FD at
THEIR OWN RISK.
HUF

The below documents should be considered for ID proof:
HUF Pan card
HUF/Kartha Adress Proof & identity proof of Kartha
Photograph
Cancel cheque leaf for Bank account verification.
Family Trust

The below documents should be considered for ID proof:
Copy of the Registration Certificate
Acknowledgment of registration application if applied for.
Pan Card copy
Address proof
List of signatories
Board Resolution/Consent letter from Trustees
Individual KYC of all Trustees
Photographs .ID & Address proof of Signatories
Cancel cheque leaf for Bank account verification.
Trust Deed
If the trust is not registered OR not willing to be registered in future, a letter duly
signed by Authorized Signatories stating the Trust is not registered & not willing
to be registered in future is required.
Sole Propritorship

The below documents should be considered for ID proof:
ID & Address proof of the proprietor
PAN card of proprietor
Address Proof
Photograph
If the sole proprietorship is in different name, the bank statement, OR
registration certificate OR
telephone bill
Cancel cheque leaf for Bank account verification.
CLUB, ASSOCIATION, SOCIETY

The below documents should be considered for ID proof:
Copy of the Registration Certificate ,if registered
Acknowledgment of registration application if applied for.
Pan Card copy
Address proof
List of signatories
MOA & Resolution
Individual KYC of all signatories
Photographs .ID & Address proof of Signatories
Cancel cheque leaf for Bank account verification.

Fixed Deposit
In these times of uncertain returns, fixed deposits have become the most preferred
banking instruments for planning a financially worry-free future for the family.
Which is why Mahindra Finance's Fixed Deposit scheme has been specially
designed to assure you of guaranteed returns at highly competitive interest rates
with this low-risk investment. We offer up to *12.21% p.a. for cumulative deposit
on 5 years for senior citizens. Below is the detailed structure of our Rate of
Interest.





Fixed Deposit Interest Rates


Non-Cumulative Scheme
Period (Months) Interest p.a.*#/(Half Yearly) Interest p.a.*#/(Quarterly)
12 9.00% 8.90%
24 9.75% 9.65%
36 10.00% 9.90%
48, 60 9.50% 9.40%
Minimum Amount Rs. 25,000+ Rs. 50,000+
Cumulative Scheme
Minimum Amount: Rs. 10,000+
Period (Months) Interest */p.a. Effective Yield p.a.**
12 9.25% 9.25%
18 9.75% 10.07%
24 10.00% 10.50%
36 10.25% 11.34%
48 9.75% 11.27%
60 9.75% 11.85%
Note:
+ Additional amount will be accepted in multiples of Rs. 1,000/-
# Interest payment Half Yearly on 30th September and 31st March only
through NECS/NEFT
Interest Payment Quarterly on 30th June, 30th September, 31st December
and 31st March only through NECS/NEFT
** Compounded annually
* Senior Citizens will get an additional rate of 0.25% per
annum/Employees will get an additional rate of 0.35% per annum (all M &
M Group Company Employees)








Improvement and Performance in Mahindra Capital
& Financial Services through Rural and Semi Urban
areas
Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is one of
Indias leading non-banking finance companies focused on providing finance for
utility vehicles, tractors and cars in the rural and urban and semi-urban sectors.
Mahindra Finance is a subsidiary of Mahindra & Mahindra, a leading tractor and
utility vehicle manufacturer. The company has positioned itself between the
organized banking sector and local moneylenders, offering customers
competitive, flexible and speedy lending services and has customized packages
for customers every need.
Mahindra Finance has a network of 436 branches covering more than 80% of the
districts in India. It has entered into more than 600,000 customer contracts and
has disbursements of around Rs. 21000 crore since inception. Almost all the top
mutual funds in the country have reposed their trust in the company and have
invested in it. Mahindra Finance listed on National Stock Exchange of India
Limited and Bombay Stock Exchange Ltd. on March 17, 2014 . CRISIL has
assigned a AA+/ stable rating to the Companys long term debt reflecting a high
degree of safety. This itself shows the level of commitment to the service of this
company.
MMFSL is the largest amongst NBFCs covering rural and semi-urban areas. This
network has enabled it to develop and maintain the customer relationships. It is
believed that its branch network enables MMFSL to service and support the
existing customers from proximate locations, which gives customers easy access
to our services, and also enables us to reach new customers. The broad geographic
spread of the network also provides some protection against crop failures or
natural calamities, which can from time to time affect parts of India.
Over the years Mahindra & Mahindra Financial Services Ltd (Mahindra Finance)
has increased estimated value of assets. Total assets under management is Rs.
8543 Crores. Its financed amount has increased from Rs. 3152crs to Rs.3966crs
year-on-year basis. MMFSL recorded total revenues of INR 5,784 million and
profit after tax of INR 752 million for the Nine Months ended December 31, 2014
and had Total assets of INR 59,524 million as of December 31, 2014 . As said
above MMFSL has an extensive distribution network with presence in 25 states
and 2 union territories in India through 400 branches. Its market has been
categorised into five zones and 16 regions with branches reporting into their
respective regional officeBranches provided authority to approve loans within
prescribed guidelines.
Graph-1:
Total Branches of Mahindra & Mahindra Financial Services Ltd in the
Country

Auto Industry and Non Banking Finance Companies
This kind of business has become both cause and effect of auto industry, as it has
propelled the growth of sale of vehicles many fold and also enjoyed the benefit of
diversification of vehicle industry especially due to the process of Liberlisation,
Privatisation and Globalisation (LPG).
Over a million passenger cars and utility vehicles are sold in India. The
total demand for cars and utility vehicles is expected to grow at a CAGR more
than 20 % for the period 2013 -12. This is to be taken into notice that the ready
availability of finance has enabled the growth in auto sales. Mahindra and
Mahindra Finance Services Limited is the integral part of this stratagem and
system.
The key drivers for growth in demand for automobiles are:
0
50
100
150
200
250
300
350
400
450
Series1
Growing incomes have resulted in the increased affordability of
vehicles.
Broader distribution network (both of manufacturers and financiers)
has enabled a larger population to be targeted resulting in greater
demand for vehicles.
Constant fall in equated monthly installments has resulted in the
increased demand for automobiles. This has given rise only after
emergence of competitive market.
Drop in holding period from 10 -12 years to 4 - 5 years also further
increased demand for new vehicles.
Widely spread network of Non-Banking Financial Institutions as
institutionalized system of financing at very competitive rate with
fair policies and open strategy.
More importantly, these kinds of institutions try to cater the demand of customers
and auto companies both, and serve as significant chain between the two. It is
simply recognized as trusted way of business at low risk but high ease. This
organized sector of financing accounts for 71% of the entire auto finance market
with the balance being serviced by the local money lenders. The total organized
auto finance market was expected to grow at a CAGR of 20.57% over the period
2014 -2010.
Table-1:
Market Trend of Auto Industry Growth and Finance
Availability
(Rs.
billion)
2001-02 2004-05 2012 -06 2013 -10 2002-
2014
(CAGR
%)
2014 -2010
(CAGR%)
New Car
Finance
108 206 216 379 18.98 15.07
New UV
Finance
36 67 7 149 20.73 18.10
Total
New
Auto
Finance
Market
144 273 283 628 19.42 1.88
Used
Vehicle
Finance
N.A. 57 81 262 34.09
Total
Auto
Finance
330 374 781 20.67
Market

If one compares the performance of Mahindra finance with that of other
institutions or companies, one finds very remarkable figure that gives the
testimony of market trust with customers and its performance in this particular
business. The following table depicts the position of M&M vis--vis other similar
companies and its robust performance in the market.
Table-2:
M&Ms Performance and Finance Market for Auto Industry in India
1H F-0 1H F-07 % Growth
Total Industry
(Auto)
845,300 1,034,100 22%
M&M 64,160 74,054 15%
Total Industry
(FES)
113,000 154,000 37%
M&M 36,000 47,000 30%

History of Mahindra & Mahindra Financial Services Limited
Mahindra & Mahindra Financial Services Limited initially began its service on
January 1, 1991 as Maxi Motors Financial Services Limited and received
certificate of commencement of business on February 19, 1991. Its name was
changed to Mahindra & Mahindra Financial Services Limited (MMFSL) on
November 3, 1992. It is registered with the RBI as an NBFC with effect from
September 4, 1998 under Section 45IA of the Reserve Bank of India Act 1934. It
has now travelled a long journey in the area of financial services and also gained
the reputation of being one of the finest service providers in the country. First of
all in 1993, Mahindra & Mahindra Financial Services Limited (MMFSL)
commenced its service of financing for Mahindra & Mahindra Utility Vehicles
(MMUVs). It opened its first branch outside Mumbai at Jaipur in 1995. A
detailed history of Mahindra Finance can be displayed in a chronological manner
in the following box:
Feature Box-1

In 1993,
commenced financing of M&M UVs
In 1995,
opened our first branch outside Mumbai, at Jaipur
In 1996,
commenced financing M&M dealers for purchase of
tractors
In 1998,
launched pilot project for retail tractor financing
In 1999,
commenced tractor retail financing in rural and semi-
urban areas
In 2001,
Total Assets crossed Rs. 10 billion
In 2002,
Commenced financing of non-M&M vehicles
Received Tier II debt from International Finance
Corporation
Made first securitisation transaction of Rs. 434.8 million
In 2004,
Received a long-term credit rating of AA+/Stable
Opened a branch in Port Blair
Listing of non convertible debentures on BSE on the
wholesale debt market segment
In 2012 ,
Tied up with HPCL
Made MIBL our wholly owned subsidiary

In 2014 ,
Issued IPO
Tied up with Maruti
Launched M&M marketing campaign
Reached a new benchmark with 400 branches



Vision and Mission of Mahindra and Mahindra Finance Service Ltd
(MMFSL)
Vision:
Mahindra Finance envisions to be the leading Rural Finance Company and
continues to retain the leadership position for Mahindra Products.



Mission:
Mahindra Finance or MMFSL has mission to be recognised as the premier
provider of financial services on the basis of its contribution to sale of
Mahindra range of vehicles, tractors, services and help M&M protect its
sale through availability of finance.
MMFSL will specialise in financing products based on applications and
build on the competence developed in its focus area. It will target all
segments of vehicle financing and deploy the skills acquired through an in-
depth understanding of the chosen product market.
MMFSL will provide products and services tailored to the needs of M&M,
its most favoured customer, and always meet their needs. In case of
demand-supply mismatch of funds, it will do everything to find a solution.
MMFSL will help M&M develop better products by providing first-hand
information received from the target market.
Strength of MMFSL
In order to achieve the target of company in its financial business, keeping in
view the reality of market requirements, customers needs and their capacity to
expend in auto market, MMFSL has developed a stout strength. These are given
as:
In-depth knowledge of the rural and semi-urban market
Its relationship with Mahindra & Mahindra
Its branch network
Its association with dealers
Its client base
Its loan approval and administration procedures
Its ability to borrow at competitive rates
Experienced Board and executive management team

MMFSLs Relationship with Mahindra & Mahindra
MMFSL was originally set up to provide finance to M&M dealers for the
purchase of M&M vehicles and tractors and M&M. M&M provided MMFSL
(and continues to provide) with capital and a ready market. MMFSL believe that
it has been benefited substantially from the M&M brand as well as their credit
rating. MMFSL continues to be closely associated with its majority shareholder,
M&M. It has also been able to draw on a range of resources from M&M such as
company secretarial, legal and taxation advice as well as management support.

MMFSL and Dealers
MMFSL provides finance to customers of approximately 1,000 M&M and other
dealers. Its relationship with these dealers is a critical resource in sourcing
customers and in its efforts to provide customers with financial products and
services suited for the rural and semi-urban markets.

Client Base
The numerous strong relationships that MMFSL have developed with its large
client base provide it with opportunities to offer them customised products and
services to meet their needs.



MMFSLs Loan Approval and Administration Procedure
MMFSL experiences in the rural finance market have enabled it to price its
products appropriately and its relationship with dealers and customers has enabled
it to develop prudent credit appraisal procedures. MMFSL reviews process and
the regular visits by field executives enable it to monitor and evaluate its
customers ability to repay on a regular basis. MMFSL collection and
enforcement procedures are designed to maximise recoveries following any
payment default.

MMFSLs Ability of Borrowing
CRISIL has assigned AA+/stable rating to MMFSL long-term debt and P1+ rating
to its short-term debt. MMFSL has been able to constantly reduce its Average
Cost of Borrowings. It believes that it has achieved reduction in cost of funds as a
consequence of its rating and effective treasury management and innovative fund
raising programs (for example our securitization program) aided by a declining
interest rate environment. Although the interest rates payable by it have recently
increased, in line with increases in rates in India. Generally, MMFSL believes that
it is able to borrow form a range of sources at competitive rates.

Business of MMFSL
MMFSL has devised following business strategy, which are vigorously followed
with full esteem and enthusiasm:
The loan products designed by MMFSL, both in
terms of amount and tenure, are based on usage and the economic
life of the vehicle Commercially, UVs are used both for passenger
as well as goods transport. Tractors are used for both farm and
haulage applications.
Its innovative and flexible repayment schedule is
designed on a case to case basis and suits the need of every
borrower, with convenient and comfortable repayment schedules
and methods. MMFSL offers quarterly, monthly, half-yearly
repayment schedules and one can repay via post-dated cheques,
demand drafts and cash.
MMFSL customers for retail loans are small
entrepreneurs or self-employed individuals such as transport
operators, taxi operators and agriculturists. It also provides trade
finance to automobile and tractor dealers, which following the
sale of a vehicle, are converted into direct retail customer loans.
Its customers usually provide part of the amount and the balance
of the vehicles price is financed by it.
MMFSL believes that to operate effectively in
rural and semi-urban areas, it is necessary to be familiar with the
local culture, practices and environment. Accordingly, it
endeavours to recruit local employees into its branches and
provide them training on tailor-made training programmes. It
conducts most of its business through its own field executives and
branch personnel, which it believes is preferable to relying on
outsourced marketing agents and sales agents.
MMFSLs business has grown extensively since
the time it was established. Its loan assets, total income and profit
after tax have all grown considerably over the last few years.
Management of MMFSL
Management: At Mahindra Finance currently have 10 Directors vested
with the charge of the general supervision, direction and management of
the operations and business of the Company.
The primary responsibility of the Board of Directors
includes:
Overseeing high standards of corporate governance and
compliance with various laws.
Shaping policies and procedures.
Monitoring MMFSLs performance and evolving the
growth strategy.
Setting up counter-party and other prudential risk
management limits.
Overseeing its financial management and approving
various lines of business.
Feature Box-2:
Name of Board of Directors
MR. BHARAT N. DOSHI
MR. UDAY Y. PHADKE
MR. ANJANIKUMAR
CHOUDHARI
MR. DHANANJAY MUNGALE
MR. MANOHAR G. BHIDE
MR. M.B.N. RAO
DR. PAWAN GOENKA
MR. PIYUSH MANKAD
MR. RAMESH G. IYER
Ms. RAMA BIJAPURKAR

Day-to-day management is carried out by a
Management Committee comprising:
Mr. Ramesh Iyer - Managing
Director
Mr. V.Ravi - Chief Financial Officer
Mr. Apurv Verma - Vice President
(Operations)


Code of Conduct for Directors
Mahindra & Mahindra Financial Services Limited is committed to conducting its
business in accordance with applicable laws, rules and regulations and the highest
standards of business ethics and ethical conduct.

This Code of Conduct (Code) reflects the business practice and principles of
behaviour that support this commitment. The Board of Directors (the Board) is
responsible for setting the standards of conduct contained in the Code and for
updating these standards as appropriate to reflect legal and regulatory
developments. The Code is intended to provide guidance and help in recognizing
and dealing with ethical issues and to help foster a culture of honesty and
accountability. Every Director is expected to read and understand this Code and
its application to the performance of his or her duties, functions and
responsibilities.
Every Director must
represent the interests of the shareholders of the Company;
exhibit high standards of integrity, commitment and
independence of thought and judgement;
dedicate adequate time, energy and attention to ensure the
diligent performance of his/her
duties including making all reasonable efforts to attend Board
or Committee Meetings; and
comply with every provision of this Code.
Compliance Officer
The Company has designated Mr. Ramesh Iyer, Managing Director to administer
this Code.
Directors, at their discretion, may make any report or complaint provided for in
this Code to the Chairman of the Board of the Company or to the Compliance
Officer. The Compliance Officer will refer complaints submitted to the Chairman
of the Board.

Compliance with Applicable Laws
In the discharge of their duties and responsibilities, Directors must comply with
all applicable laws, rules and regulations. These would include securities laws,
insider trading laws and the Companys insider trading compliance policies.

Conflict of Interest
Directors must avoid conflicts of interest. Directors should also be mindful of, and
seek to avoid, conduct which could reasonably be construed as creating an
appearance of a conflict of interest.
While Directors should be free to make personal investments and enjoy social
relations and normal business courtesies, they must not have any interests that
adversely influence the performance of their duties, functions and responsibilities
as Directors of the Company. A conflict of interest can arise when a Director or a
Member of his/her immediate family receives improper personal benefits as a
result of his/her position as a Director of the Company. A conflict situation can
also arise when a Director takes an action or has an interest that may make it
difficult for him or her to perform his or her duties, functions and responsibilities
objectively and effectively.
While the Code does not attempt, and indeed it would not be possible, to describe
all conceivable conflicts of interest that could develop, the following are some
examples of situations which may constitute conflicts of interest:
Working, in any capacity, for a competitor, customer, supplier
or other third party while employed by the Company.
Competing with the Company for the purchase or sale of
property, products, services or other interests.
Directing business to a supplier owned or managed by, or
which employs, a relative or friend.
Receiving loans or guarantees of obligations as a result of
ones position as a Director.
Accepting bribes, kickbacks or any other improper payments
for services relating to the conduct of the business of the
Company.
Accepting, or having a Member of a Directors family accept,
a gift from persons or entities that deal with the Company,
where the gift is being made in order to influence the
Directors actions as a Member of the Board, or where
acceptance of a gift could otherwise reasonably create the
appearance of a conflict of interest.
Conflicts of interest may not always be clear-cut. Any question
therefore about a Directors actual or potential conflict of
interest with the Company should be brought promptly to the
attention of the Chairman of the Board, who will review the
question and determine a proper course of action, including
whether consideration or action by the full Board is necessary.
Directors involved in any conflict or potential conflict
situations shall recuse themselves from any discussion or
decision relating thereto.

Corporate Opportunity
Directors shall not
a. compete with the Company; or
b. take for themselves personally any business opportunities that
belong to the Company or are
c. discovered through the use of corporate property, information or
position; or
d. use corporate property, information or position for personal
gain.
Confidentiality
All Directors must maintain the confidentiality of confidential information
entrusted to them or disclosed or acquired by them in carrying out their duties and
responsibilities, except where such disclosure is authorised by the Company or is
required by laws, regulations or legal proceedings.
The term confidential information includes, but is not limited to, non-public
information that might be of use to competitors of the Company or harmful to the
Company or its customers, if disclosed. Whenever feasible, Directors should
consult the Chairman of the Board or the Compliance Officer if they believe they
have a legal obligation to disclose confidential information.

Fair Dealing
Directors should endeavour to deal fairly with the Companys customers,
suppliers, competitors, officers and employees. No Director shall take unfair
advantage of the Companys customers, suppliers, competitors or employees
through manipulation, concealment, abuse of privileged information,
misrepresentation of material facts or any other unfair dealing practice. Gifts or
entertainment in any form that is likely to result in a feeling of expectation of
personal obligation should not be extended or accepted.

Protection and Proper Use of Company Assets
Directors should perform their duties in a manner that protects the Companys
assets and ensures their efficient use. The Companys assets should be used for
legitimate business purposes.
Directors are encouraged to promptly contact the Chairman of the Board or the
Compliance
Officer if the Director believes that he or she has observed illegal or unethical
behaviour by any employee, officer or director, or by any one purporting to be
acting on the Companys behalf or any violation or possible violation of this Code
and the reporting Director has any doubt as to the best course of action in a
particular situation. Confidentiality will be maintained, to the extent permitted by
law.
Public Company Reporting
As a public company, it is of critical importance that the Companys filings with
the Securities and Exchange Board of India, the Reserve Bank of India and/or the
concerned Stock Exchange(s) on which the securities of the Company are or may
be listed be full, fair, accurate, timely and understandable. The Directors shall
provide information necessary to ensure that the Companys published reports
meet these requirements. The Company expects Directors to provide prompt and
accurate answers to enquiries relating to its public disclosure requirements.
This Code may be amended, modified or waived only by the Companys Board of
Directors and must be publicly disclosed if required by any applicable law or
regulation. As a general policy, the Board will not grant waivers to the Code.

Group Structure of MMFSL
MMFSL is a company with a strong foundation and a shining legacy, growing
every day to create a legacy of its own. Its leading promoter Mahindra &
Mahindra holds the majority of its Equity Shares and is also a leading tractor and
UV manufacturer with over 60 years experience in the Indian market. As a
supplement to its business, in May 2004, we started an insurance broking business
through our wholly owned subsidiary, Mahindra Insurance Brokers Limited.
Mahindra Finance has pride on having pioneered rural finance in India. It has
grown with each passing year, met targets, exceeded expectations and in the
process created wealth for its shareholders. Here MMFSL has a dedicated section
of up-to-date information, from financials to our events and presentationseasy
access to information, at the click of a button. Much like most of it quick and
simple processes at Mahindra Finance.

Investors Zone
Mahindra Finance have a wide range of products and services, with something to
suit everyones needs. Right from finance for two wheelers, tractors, farm
equipment, cars and utility vehicles to commercial vehicles and construction
equipment. It also has a group of experts providing investment
advice, surveying available market products and choosing the most suitable to its
customers needs.
Funding of MMFSL
MMFSL has consistently enjoyed a good credit rating enabling it to borrow funds
at competitive rates. Rating linked to credit rating of M&M, decline in rating in
FY03 due to rating downgrade of M&M. Total Consortium Size of Rs. 7,500
Million. MMFSL has also securitised part of its loan portfolio to raise funds. The
first securitisation transaction was done in FY02 and since has done 22
securitisation / Assignment transactions till date aggregating Rs. 18 bn.
Key Investment Themes of MMFSL
Immense potential in the rural and semi urban markets
Strong Capital Base
M&M Parentage
Extensive Branch Network / Dealer Relationships
Consistent financial performance
Client Base
Prudent loan approval and administration procedures
Ability to borrow at competitive rates
Early entry and knowledge of the rural and semi urban market
Experienced Board and executive management team
Sources of Borrowings
Since there are many sources of borrowing, these can, however, be shown as:


Graph-2


Graph-3



Mutual Funds
Insurance Co.
Others
Banks
Series1
0%
10%
20%
30%
Series1
Assets Securitization
MMFSL securitises parts of its loan portfolio to improve its cash flows and
reduce borrowings.
The company did its first securitisation / Assignment transaction in FY02 and has
done 22 securitisation transactions till date aggregating Rs. 18 bn. All
securitisation programs (except bilateral deals) have been rated AAA (so) by
CrisilCredit enhancements in form of cash collateral, Subordinate Class B
PTCsetc. As a prudent measure, MMFSL makes enhanced loan and expense
provision on securitisation upfront even though it is not required as per
accounting guidance.
Assets Securitization
MMFSL securitises parts of its loan portfolio to improve its cash flows and
reduce borrowings.
The company did its first securitisation / Assignment transaction in FY02 and has
done 22 securitisation transactions till date aggregating Rs. 18 bn. All
securitisation programs (except bilateral deals) have been rated AAA (so) by
CrisilCredit enhancements in form of cash collateral, Subordinate Class B PTCs
etc. As a prudent measure, MMFSL makes enhanced loan and expense provision
on securitisation upfront even though it is not required as per accounting
guidance. This can be drawn as:


Feature Box-4



FY11 FY12


FY13 Dec12 Dec13
Receivable Securitised

3190 5428 553 2396 2807



Discount Rate
%


5.48-
6.15
5.10-
.67
5.20-
6.48
5.40-
6.50
6.25-
7.50



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




Nate Income from
Securitisation) 146 193 489 252 248










Graph-4








0
1000
2000
3000
4000
5000
6000
FY04 FYO5 FY06 5-Dec ec0
Receivable Securitised
Discount Rate %
Consideration Received (Rs. Mn.)
Nte Income from Securitisation)
Profit and Loss Statement of MMFSL
Table-2
Rs. in Mn. December 2012 Dec 2013 March 2014
Income from
Operation
3913 5669 5823
Other Income 70 115 141
Total Income 3983 5784 5964
Interest Cost 1518 2283 2194
Administrative
Cost
1502 2315 2096
Depreciation 36 45 52
Total
Expenditure
3056 4643 4342
PBT 927 1141 1622
PAT 611 752 1083





Profit & Loss Statement
(excluding securitization prov. Write back)
Table-3
Rs. in Mn. December 2012 Dec 2013 March 2014
Income from
Operation
3785 5613 5695
Other Income 70 115 141
Total Income 3855 5728 5836
Interest Cost 1518 2283 2194
Administrative
Cost
1502 2315 2096
Depreciation 36 45 52
Total
Expenditure
3056 4643 4342
PBT 799 1085 1494
PAT 482 696 998





Balance Sheet: Liabilities
Table-4
Rs. in Mn. December 2012 Dec 2013 March 2014
Net Worth 4011 7541 6819
Equity Share
Capital
705 833 833
Reserve and
Surplus
3306 6708 5986
Employee Stock
Option
2 22 8
Preference Share
Capital
500 ---- 500
Secured Loans 28834 41435 34837
Unsecured Loans 7183 5228 3993
Current
Liabilities and
Provs.
3586 5298 4044

Consolidated Profit and Loss
Table-5
Rs. in Mn. December 2012 Dec 2013 March 2014
Income from
Operation
3946 5732 5861
Other Income 68 103 119
Total Income 4014 5835 5980
Interest Cost 1517 2282 2194
Administrative
Cost
1502 2315 2096
Depreciation 36 45 52
Total
Expenditure
3051 4641 4334
PBT 963 1184 1646
PAT 634 776 1091




Summary Results
Table-6
Rs. in Mn. December 2012 Dec 2013 March 2014
Total Income 3983 5784 5964
Profit before Tax 927 1141 1622
Profit after Tax 611 752 1083
Dividend -- -- 35
Equity Share
Capital
705 833 833
Reserves &
Surplus
3306 6708 5987
Net Worth 4011 7541 6819
EPS (Basic) 8.42 8.91 14.59
Market
Capitalistaion
-- 24110 20830
No. of Branches 295 400 305
New Contracts
during the Period
(No.)
92477 127289 131,158
No. of Employees 2322 2575 2296



Ratio Analysis
Table-7
December 2012 Dec 2013 March 2014
PBT/Total
Income
23.3% 19.7% 27.2%
PBT/Total Asset 2.6% 2.4% 3.3%
RONW (Avg. Net
Worth)
19.0% 13.2% 20.1%
Overheads/Total
Assets
2.7% 3% 2.7%
Debt/Equity 8.81:1 6.08:1 5.65:1
Book Value
Multiple
- 3.1% 3%
Capital Adequacy 14.3% 15.2% 18.2%
Tier-I 8.4% 11.8% 13.2%
Tier II 5.9% 3.4% 5%
Book Value 57.4 90.5% 81.9%




Key Risks & Management Strategy
Volatility in interest rates Matching of
Asset Liabilities
Rising competition Increasing
Branch Network
Funds at competitive rates Maintaining Credit Rating &
Asset Quality
Dependence on M&M Increasing Non-
M&M Portfolio
Vagaries of nature Increasing
Geographical Spread
Controlling write-offs Improving the
Portfolio Mix
Employee retention Job Rotation / ESOP /
Group Opportunity
Handling cash Insurance & Effective
Internal Control





Treasury & Risk Management of MMFSL
Table-8

Treasury Management Risk Management

The treasury department
undertakes liquidity management
by maintaining optimum level of
liquidity and complying with
RBI requirement of asset liability
management.


The surplus funds are invested in
accordance with the investment
policy of the board

Surplus funds are invested in
Government securities, liquid
debt based mutual funds and
bank fixed deposits

As of Dec 31, 2014 , Rs500.00
million was invested in mutual
funds and Rs13.4 million was
invested in Government
securities


The Risk management team is a
eight member team which
identifies, assesses and monitors
the principal risks of the
Company, in accordance with the
defined policies and procedures

The Audit Committee overseas
the risk management policies and
procedures and also reviews the
credit risk of the Company

The Asset Liability Management
Committee reviews risk
management policies in relation
to various risks including
liquidity, interest rate, investment
policies and strategy

We have also appointed a
number of audit firms across the
country to review and audit our
branch operations and their audit
reports are reviewed by the Audit
Committee


Performance of MMFSL in the Year 2008
Mahindra Finance Top Line grew by 15% at Rs.988 crores
Disbursement up by 7% at Rs. 4843 crores
April to December08 ( 9 months) Results Highlights
Total Income up by 15% at Rs. 987.80crores
PAT up 5% to Rs 109.73 Crores
Disbursement up by 7% at Rs. 4843 crores

Q3 Highlights :
Total Income up by 11% at Rs. 357.74 crores
PAT up 6% at Rs .45.61 crores

Press release from Mumbai on January 23, 2013 presented the performance
of Mahindra Finance as: Mahindra & Mahindra Financial Services Ltd
(Mahindra Finance), a leading player in providing financial services in the rural
and semi-urban markets, has registered a growth of 15% in its consolidated
Income at Rs. 987.80 Crores for the first 9 months period (April to December08)
as compared to Rs. 858.36 crores registered during similar period in the previous
year. Profit After Tax (PAT) for this period stood at Rs 109.73 Crores, up by 5%
from Rs 104.23 Crores as compared to the same period of the previous year.
During the third quarter, the Companys income was at Rs.357.74 crores as
against Rs. 321.53 crores for similar period in the last year. The Profit After Tax
(PAT) stood at Rs. 45.61 crores as against Rs.43.13 crores in the previous year.
The Companys disbursement registered a growth of 7% at Rs. 4843 crores for the
first nine months period as compared to Rs.4546 crores during last year. The
Company continues to be the largest retail financier for Mahindra range of
vehicles and tractors. Taking full advantage of the wide branch network spread
across semi-urban and rural markets coupled with encouraging cash flow from the
rural centres, the Company has been able to reduce the impact of the pressure of
economic meltdown witnessed in this quarter.

Performance of Mahindra Finance in the Year 2013
Quarter 1
Consolidated Q1 PAT up by 52% at Rs.43 crores,
Consolidated
Q1 Highlights F10
Total Income up by 10.61% at Rs. 336 crores
PAT up by 52.48% at Rs. 43.16 crores
Standalone
Q1 Highlights F10
Total Income up by 10% at Rs. 329.31 crores
PAT up by 49.48% at Rs. 40.00 crores
Press release from Mumbai on July 27, 2013 describes the performance as:
Mahindra & Mahindra Financial Services Ltd (Mahindra Finance), a leading
player in providing financial services in the rural and semi-urban markets, has
registered on a standalone basis a growth of 10% in its Total Income at Rs. 329.31
crores during the first quarter ended 30th June, 2013 as compared to Rs. 299.43
crores during the same period previous year. The company made a Profit After
Tax (PAT) during the quarter ended 30th June, 2013 of Rs 40.00 crores, an
increase of 49.48% from Rs. 26.76 crores for the same period previous year.
During the period, the Company increased its focus on NPA reduction and funds
from various sources were raised at very competitive rates bringing down the
overall cost of borrowings thereby resulting in increased PAT during the quarter.
The Companys disbursement registered a growth of 8% at Rs. 1617 crores for the
first quarter ended 30th June, 2013 as compared to Rs.1496 crores during the
same period previous year. The Company continues to be the largest retail
financier for Mahindra range of vehicles and tractors.
On a consolidated basis the Total Income for the quarter ended 30th June, 2013
increased by 10.61% to Rs.336.00 crores from Rs.303.78 crores & the Profit After
Tax (PAT) increased by 52.48% to Rs.43.16 crores from Rs. 28.30 crores in the
corresponding period of the previous year.
SUBSIDIARIES
Mahindra Insurance Brokers Limited (MIBL)
During the first quarter, MIBL registered a growth of 23% in its income at
Rs.7.70 crores as against Rs.6.23 crores in the previous year. The profit after tax
(PAT) also rose by 53% at Rs. 2.95 crores as against Rs.1.92 crores registered for
the same period a year ago.
Mahindra Rural Housing Finance Limited (MRHFL)
MRHFL has disbursed Rs.11.99 crores during the three months period ended
June13 as against Rs.4.75 crores disbursed during the same period a year ago.
The Company presently operates in Western and Southern Regions. The
Company made a profit of 0.19 crore during the first quarter ended 30th June,
2013 as compared to loss of Rs.0.38 crore made during the quarter ended 30th
June, 2008.

Mahindra Finance Q4 PAT up by 43% at Rs. 108 crores, proposes a
dividend of Rs. 5.50 per share
Standalone
Q4 Highlights
Total Income up by 10% at Rs. 398 crores
PAT up by 43% at Rs. 108 crores

F-09 - Results : Highlights
Total Income up by 13% at Rs. 1385 crores
PAT up by 21% at Rs. 215 crores
Disbursement up by 7% at Rs. 6281 crores

Consolidated
Q4 Highlights
Total Income up by 10% at Rs. 402 crores
PAT up by 43% at Rs. 110 crores

F-09 - Results : Highlights
Total Income up by 13% at Rs. 1400 crores
PAT up by 21% at Rs. 220 crores

Press Release from Mumbai on April 22, 2013 about the recent
performance of MMFSL as: Mahindra & Mahindra Financial Services Ltd
(Mahindra Finance), a leading player in providing financial services in the rural
and semi-urban markets, has registered on a standalone basis a growth of 10.07%
in its Total Income at Rs. 397.69 crores during the quarter ended 31st March,
2013 as compared to Rs. 361.30 crores during the same period previous year.
The company on a standalone basis made a Profit After Tax (PAT) during the
quarter ended 31st March, 2013 of Rs 108.04 crores, an increase of 43.30% from
Rs. 75.39 crores for the same period.
The Companys Total Income on a standalone basis for the year ended 31st
March, 2013 increased by 12.86% to Rs. 1384.66 crores from Rs. 1226.80 crores
during the previous year. The Profit After Tax (PAT) increased by 21.18% to Rs.
214.52 crores from Rs. 177.02 crores in the previous year.
The Companys disbursement registered a growth of 7% at Rs. 6281 crores for the
financial year ended 31st March, 2013 as compared to Rs.5850 crores during last
year. The Company continues to be the largest retail financier for Mahindra range
of vehicles and tractors.
On a consolidated basis the Total Income during the year ended 31st March, 2013
increased by 13.24% to Rs.1400.45 crores from Rs.1236.65 crores in the previous
year. The Profit After Tax (PAT) for the same period increased by 21.28 % to Rs.
219.69 crores from Rs. 181.14 crores. The Consolidated Income for the quarter
ended 31st March, 2013 increased by 10.27 % to Rs.401.51 crores from
Rs.364.10 crores & the Profit After Tax (PAT) increased by 42.97% to Rs.109.96
crores from Rs. 76.91 crores.
The Board of Directors has recommended a Dividend of Rs.5.50 per share on
equity of Rs. 10/ each as against Rs.4.50 per share declared last year.
Our disbursement and collection both have been very encouraging in the
last quarter. The cash flow from rural segment continues to be steady, said
Ramesh Iyer, Managing Director, Mahindra Finance.
Even during the financial tightness, we were able to tie-up funds required
to meet our business demands at competitive price. The Company was able
to discharge all its liabilities without a single day of default. said, Mr. V.
Ravi, Chief Financial Officer, Mahindra Finance.
SUBSIDIARIES
During the year ended period, the Companys insurance broking business
(Mahindra Insurance Brokers Limited) registered a growth of 28.55% in its
income at Rs.23.15 crores as against Rs. 18.01 crores in the previous year. The
profit after tax (PAT) also rose by 30.44% at Rs. 6.47 crores as against Rs.4.96
crores registered during last year.
The Companys rural housing business (Mahindra Rural Housing Finance
Limited) has disbursed Rs.43.39 crores during the twelve months period with
operations from Western and Southern Regions.
SUBSIDIARIES
During the nine months period, the Companys insurance broking business
(Mahindra Insurance Brokers Limited) registered a growth of 41% in its income
at Rs.17.23 crores as against Rs. 12.20 crores in the same period of the previous
year. The profit after tax (PAT) also rose by 44% at Rs. 4.28 crores as against Rs.
2.97 crore registered during the nine month period of the last year.
The Companys rural housing business (Mahindra Rural Housing Finance
Limited) has disbursed Rs.31.42 crores during the nine months period with
operations from Western and Southern Regions. During the third quarter, National
Housing Bank took a stake of 12.5% in the Company.
New Feather in the Cap of Mahindra Finance
Mahindra Finance wins coveted Pioneer Award Project MF Connect
3000 adjudged best in its category.
Mahindra & Mahindra Financial Services Ltd (Mahindra Finance has won the
Pioneer Award in the individual category of the Enterprise Connect Award 07,
instituted by Cybermedia India Online Ltd (CIOL) and Dataquest. This award has
been given in recognition of MMFSLs innovative project called MF Connect
3000, which has been designed to enhance the quality of delivery to the
customers.
The Enterprise Connect Award recognizes a CIOs leadership qualities, business-
technology understanding, people orientation and performance. MF Connect
3000 was adjudged the best.
Mr. Suresh Shanmugam, National Head (Information Systems & Technology),
MMFSL said, This award is recognition of MMFSLs commitment towards its
customers. The whole concept of MF Connect 3000 revolves round 3Cs
Corporate, Customer & Care and 3S Support, Solutions & Services. The
challenge was to expand MMFSLs presence in the semi-urban and rural areas
and to deliver hassle free and prompt service to the customers. The customer
satisfaction has enhanced and the transaction costs have been curtailed.


The project was developed under the leadership of Mr. Suresh Shanmugam and
demonstrates the benefits of deploying large-scale IT systems both within the
organisation as well as outside business environment. MF Connect 3000 has
been designed in line with Mahindra Groups customer centricity approach. As a
leading player in rural finance, MMFSL has always been in the forefront of
innovation with products that benefit a larger customer base.

MF Connect 3000 works with the help of a hand held device referred to as a
mini computer. The software & process have been developed in-house.
The service level to the customer is substantially enhanced in the rural geography
through the hand held device capability and it also has the ability of covering our
CRM initiatives. To & fro communication between the corporate office and the
field level is on real time basis. It is a one-of-its-kind process in the industry.
In turn, MMFSL benefits by eliminating duplication of work; mapping incentives
& performances on real time basis; security of critical data in the central server;
lower IT administration and support cost; complete monitoring of cash flow in the
market; and a robust control system.


OBJECTIVES
With an objective to make the investors aware of functioning of mutual
funds and other investments, an attempt has been made to provide information in
question-answer format which may help the investors in taking investment
decisions.

To find out the benefits given to the investor by Mahindra Finance
1-To know the benefits getting by promoting Mutual Fund of Mahindra Finance
2-To find out the role of Mutual Fund and FD in improvement of the growth of
Mahindra Finance.
3-To find out the Risk factor in investment in Mahindra Finance.
4-To find out the awareness of Financial Services of Mahindra Finance.









RESEARCH
METHODOLOGY
Research Problem:
The research problem was to find out Financial Services like Fixed
Deposit & Mutual Fund of Mahindra finance in Market and Investors
Perception. The research conducted was descriptive in nature.

Research Design:
The research problem is the preparation of the design of the research
project, popularly known as the Research Design.
A research design is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance design is the
conceptual structure within which research is conducted.

Sample Design:
The sample was constructed in which the respondents were in adolescence.
a) Area Selected for research:
The survey was conducted in the Varanasi city.
b) Sampling Units:
Each respondent was considered as a single unit in the survey.
c) Sample size:
The sampling was done taking 100 units

Collection Of Data:
The data that is used for the survey is primary data i.e., first hand data is
used. The method used for collection of data is through questionnaire
method. The questions were asked related to the problems and feedback
was received.






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

OPTIONS No. OF RESPONDENTS PERCENTAGE
YES 92 92%
NO 8 8%
TOTAL 100 100%
Interpretation
From the above diagram, it can be interpreted that investment in the
Mahindra Finance is 92%. Respondents saying no is 8%. It shows a
good indication towards the Mahindra Finance market.

0
20
40
60
80
100
No. Of
Respondents In
%
92
8
Yes No
Q.2 If yes, you have invested in
OPTIONS No. OF RESPONDENTS
PERCENTAGE
Fixed Deposit 25 25%
Mutual Fund 36 36%
Both 28 28%
No Answer 11 11%
TOTAL 100 100%

Interpretation

It can be assumed from the above bar diagram that among 100
respondents 25% have interest in investing in FD, 36% are invested in
mutual funds, 28% for investing in both and rest 11% are those who
have not made any investment.
0
5
10
15
20
25
30
35
40
Percentage
F D
Mutual Fund
Both
No Answer
Q.3 Are you satisfied with your investment?

OPTIONS PERCENTAGE
Yes 83%
No 17%

TOTAL 100%

Interpretation
From the above diagram it can be seen that there are diversified interest
of the respondents which drives them towards the Mahindra Finance .
83% are satisfied with there investment in Mahindra Finance and
17%(including those who had not invested in Mahindra Finance) are
not satisfied with their investment.
0
10
20
30
40
50
60
70
80
90
Percentage
Yes
No
Q.4 If you have invested in Mutual Fund , are you happy with the growth rate
of price?


OPTIONS PERCENTAGE

Yes 58%

No 22%

To an extent 20%

TOTAL 100%




Interpretation

The diagram shows that 58% of the respondents are happy with the
growth in the market price of their Mutual Fund; 22% said they are not
happy and 20% said that to an extent there investment is giving the
returns are nice.

0
10
20
30
40
50
60
No. of Respondents in
%
58
Yes
No
To an extent
Q.5 In which sectors () you have invested your money?


OPTIONS PERCENTAGE

Mutual Fund 51%

Fixed Deposit 39%

Others 10%

TOTAL 100%

Interpretation


The respondent seems to be very diversified and investment are done
after deep thinking. 51% of respondent agreed that they have invested
in Mutual Fund; 39% says their investment is in F D and 10% for
others.

Mutual fund
Fixed Deposit
Others
Q.6 Have made any investment in Mutual Funds?

OPTIONS PERCENTAGE

Yes 84%

No 16%

TOTAL 100%



Interpretation

The pie chart shows that almost maximum number of public are
interested in investing in mutual funds of Mahindra Finance. The
percentage also says that which is 84%. 16% have not made any
investment in mutual fund as they have invested in shares or are new in
this market



Yes
No
Q.7 If yes, in which fund you have invested?

OPTIONS PERCENTAGE

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



Interpretation

In the above diagram we can get a rough picture of the respondents who
have made investment in mutual fund. In the sample size of 100 64%
have invested in Mahindra Finance, 38% in HDFC, 51% in ICICI,
28% in Kotak, 15% in Tata, 42% in others. In others the option mostly
given by respondents are Reliance, Birla, Franklin.

0
10
20
30
40
50
60
70
No. of Respondent in %
64
38
51
28
15
42
Mahindra Finance
HDFC
ICICI
Kotak
Tata
Others
Q.8. What is your option in which you have invested in Mahindra Finance?

OPTIONS PERCENTAGE

Growth 22%

Dividend-Reinvest 35%

Dividend Payout 43%

TOTAL 100%


Interpretation


In the above bar chart shows that 43% of the respondent are interested
in Dividend Payout option, 35% in dividend reinvest and 22% opted for
growth.



0
10
20
30
40
50
No. of
Respondents in %
22
35
43
Growth
Dividend
Reinvest
Dividend
Payout
Q.9. Investment you made in Mahindra Finance is


OPTIONS PERCENTAGE

One-time 64%

S.I.P 36%

TOTAL 100%





Interpretation

From the above graph it shows that 64% of the respondent prefers
investing the amount one time; and 36% are interested in investing SIP
(Systematic Investment Plan).

0
10
20
30
40
50
60
70
Onetime SIP
64
36
Q.10 What is the S.I.P amount you pay each month?


OPTIONS PERCENTAGE

500-1000 74%

1000-2000 12%

Others 14%

TOTAL 100%


Interpretation

The graph shows that the respondent invests their money mostly in the
monthly installment amounting to Rs. 500-1000. The percentage of the
investors are 74%. For amount Rs. 1000-2000 the percentage is 12%
and for others it is 14%.

0
10
20
30
40
50
60
70
80
Percentage
500-1000
1000-2000
Others

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


OPTIONS PERCENTAGE

10% 67%

20% 5%

Dont Know 28%


TOTAL 100%


Interpretation

According to this bar graph 67% of the respondent said that they get
dividend at the rate of 10%. 5% said that the dividend given by their
AMC is 20% and 28% says that they dont know the rate of dividend.



0
10
20
30
40
50
60
70
Percentage
10%
20%
Dont Know

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


OPTIONS PERCENTAGE

Yes 76%

No 24%

TOTAL 100%












Interpretation

The respondents are more sincere about getting the statement of their
investment. 76% says they get the statement regularly and 24% says
they dont get statement.

0
10
20
30
40
50
60
70
80
Percentage
Yes
No

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


OPTIONS PERCENTAGE

Through Broker 83%

Directly 17%

TOTAL 100%


Interpretation


The above graph shows that 83% investors do their investment through
brokers and 17% directly.





0
10
20
30
40
50
60
70
80
90
Percentage
Through broker
Directly

Q.14. Are the other services provided by the AMC/Trustee of your fund in
Mahindra Finance is satisfactory
OPTIONS No. OF RESPONDENTS PERCENTAGE

YES 35 35%

NO 15 15%

To an extent 50 50%

TOTAL 100 100%
Interpretation

The above diagram exhibits that 35% of the respondent believes that
other services provided by the AMC/Trustee is satisfactory. Theyget
the statement from the AMCs. Whereas 15% says the services are not
satisfactory or which do not meet there requirements. Large number of
people says that the services provided by the AMC are satisfactory to
an extent.
Yes
No
To an Extent

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

OPTIONS PERCENTAGE

Less Risk 33%

Nice Return 14%

Easy to Understand 28%

All Three 25%

TOTAL 100%

Interpretation
From the above graph it can be conclude that the investor thinks that
investing in mutual fund is better than investing in shares. They feel
that there is less risk in mutual fund in comparison to shares. The
percentage tends to 33% for Less risk, 145 for Nice return, 28% foreasy
to understand, 25% for All three.
0
5
10
15
20
25
30
35
Percentage
Less Risk
Nice Return
Easy Return
All Three
CONCLUSIONS

It is well known that now-a-day, Services of Mahindra Finance like mutual funds
and Fixed Deposit are most popular and safe parameter for an investor to invest.
Keeping the present and future aspects regarding the mutual funds in the India, it
is easily concluded that this market will give enough to an investor for long
period.
The Sharpe Index model is easily understood and helps investors to decide which
mutual funds are performing well and which funds are not.

Instead of concluding anything, I would like to show the comparisons of the
various investments opportunities concerning their safety, interest rate, liquidity,
etc. through following table:


INSTRUMENTS

RETURN

SAFETY

VOLATILITY

LIQUIDITY
STOCKS

HI

LO

HI

HI / LO
BONDS MOD HI MOD MOD
FIXED
DEPOSITS
LO HI LO HI
MUTUAL
FUNDS
HI HI MOD HI

Where;
HI= High,
LO= Low,
MOD= Moderate.
Now it depends from person to person what they predict from the above table and
what are their likings.

So we can conclude that the performance of Mahindra Finance is much better than
ever, which is a sign of stableness in the economy and which also win the faith of
investors.






















SUGGESTIONS



POINTS TO BE REMEMBER:

Be logical with expectations of returns from your investment.

Do not invest in the stock market on the basis of rumors and hearsay.

Investors should invest into the stock market with a proper strategy,
not as a fashion statement.

Always remember the stock market is neither a lottery centre nor a
source of entertainment that the investors will be entertained in all
respect.

Invest in shares is in accordance to your age and after reading Red
Herring Prospectus for risk factor.

Investing does not mean where one buys and sells quickly.

Do selling or buying on the basis of market analysis, not on profit or
loss of the company.

When buying or selling do not wait for best price. It is mythical.

It is okay to be contrarians but it should not become a religion.

Lastly, ensure that your seed capital is absolutely safe.


























BIBLIOGRAPHY


Research Methodology : C. R. Kothari.



Statistical Method : Dr. S. P. Gupta



Magazines Referred : Business India.
Business Today.
Business World.
.



Websites: : http://www.mahindrafinance.com/
www.amfiindia.com
www.camsonline.com
www.bseindia.com