1) Corporate governance Analysis

A. Management and Stockholders

Balance of Power

One indicator of the power that incumbent managers yield is their

compensation. Here is a comparative on our Five Firms. Maruti Suzuki is
providing more salary where as Hero Honda providing more Salary as well as
more Commission which is based on sales.

Table 1: Remuneration of CEO

Company CEO Salary Commission

Hero Honda Mr.Pawan Munjal 13811534 295000000
1
Tata Motors Mr.Rajendra Sen 1322000 6370000
Maruti Suzuki Mr.Shinzo Nakanishi 16185730 6072000
Bajaj Auto Mr.Rajiv Bajaj 13288610 21600000
Mahindra And Mr.Anand G. 11615000 13085000
Mahindra Mahindra

B. Financial Markets

All Five firms are well followed by external sources. In addition, each company
provides information to the public through its annual and quarterly reports, web-
sites and corporate communication departments.
a. Hero Honda: - the company has regularly furnished, both by post as well as
by fax (within 15 minutes of closure of the Board meeting) the annual
audited as well as quarterly un-audited result s to both the stock exchanges,
BSE & NSE, post approval and adoption of the same by the Board of
Directors of the company. The company half yearly, quarterly and yearly
results have been published in English , Hindi and other regional news
papers. This results also updated and displayed on company’s website:
www.herohonda.com . the website also displays official news realises and

1
Mr.Carl Peter Foster is CEO from 1st jan.2010
 distribution schedule. Company information also available at SEBI web-site
www.corpfiling.co.in.
b. Tata Motors: - The information regarding the performance of the Company
is shared with the shareholders every six months through a half yearly
communiqué and the Annual Report. The official news releases, including
on the quarterly and annual results and presentations made to institutional
investors analysts are also posted on the Company’s website
www.tatamotors.com. The ‘Investor Centre’ section on the Company’s
website keeps the investors updated on material developments in the
Company by providing key and timely information like details of Directors,
Financial Results, Annual Reports, Shareholding Pattern, presentations made
to Analysts etc. Members also have the facility of raising their
queries/complaints on share related matters through a facility provided on
the Company’s website. The Annual Report, Quarterly Results,
Shareholding Pattern of the Company are posted through Corporate Filing
and Dissemination System (CFDS), a portal which is a single source to view
information filed by listed companies. Hard copies of the said disclosures
and correspondence are also filed with the Stock Exchanges.
c. Maruti Suzuki :- Financial results Quarterly and annual financial results are
published in 'The Hindu-Business Line', 'Business Standard', 'Financial
Express' and in Hindi editions of 'Jansatta'. Monthly sales Monthly sales
figures are sent to stock exchanges as well as displayed on Company's
website www.marutisuzuki.com. News releases All official news releases
are sent to stock exchanges as well as displayed on the Company's website
www.marutisuzuki.com. Website The Company's website
www.marutisuzuki.com contains a dedicated segment called 'investors'
where all information needed by shareholders is available including ECS
mandate, nomination form and annual report. The website also displays
information regarding presentation made to media/ analysts/ institutional
investors, etc. Annual report Annual report is circulated to members and all
others entitled there to like auditors, equity analysts, etc. Corporate filing and
dissemination All disclosures and communications to BSE and NSE are filed
electronically through system (Corpfiling) Corpfiling. Hard copies of the
said disclosures and correspondence are also filed with the exchanges.
Exclusive e-mail id's for investors Following e-mail id's have been
exclusively dedicated for the investors queries:
msilinvestorrelations@maruti.co.in mailmanager@karvy.com Queries
relating to annual report may be sent to msilinvestorrelations@maruti.co.in
and queries relating to transfer of shares and splitting/ consolidation / remat
of shares, revalidation of expired dividend warrant.
d. Bajaj Auto Ltd.:- Quarterly, half-yearly and annual financial results are
published in numerous leading dailies, such as Business Standard, Financial
Express, The Economic Times, Kesari, Hindu Business Lines and Times of
 India. The official press release is also issued. The company also sends the
half-yearly financial results, along with a detailed write-up, to each
household of shareholders. Bajaj Auto Limited | 19 Bajaj Auto has its own
website, www.bajajauto.com, which contains all important public domain
information, including presentations made to the media, analysts,
institutional investors. The website also contains information on matters such
as dividend history, answers to Frequently Asked Questions (FAQs) by the
various shareholder categories and details of the corporate contact persons.
All financial and other vital official news releases are also communicated to
the concerned stock exchanges, besides being placed on the company’s
website. The company also files the following information, statements,
reports on the website as specified by SEBI: l Full version of the annual
report including the balance sheet, profit and loss account, directors’ report
and auditors’ report, cash flow statement, half-yearly financial statement and
quarterly financial statements, Corporate governance report. Shareholding
pattern.
e. Mahindra and Mahindra:- The quarterly, half-yearly and yearly results are
published in Business Standard and Sakal which are national and local
dailies respectively. These are not sent individually to the Shareholders. The
Company’s results and official news releases are displayed on the
Company’s website http://www.mahindra.com Presentations are also made
to international and national institutional investors and analysts which are
also put up on the website of the Company. The Company has been regularly
posting information relating to its financial results and shareholding pattern
on Corporate Filing and Dissemination System (CDFS) viz.
www.corpfiling.co.in, the common platform launched by BSE and NSE for
electronic filing by listed companies.
2) Stockholder Composition

a. Hero Honda
Table 2: Share holding Pattern of Hero Honda

Share holding pattern as on: 31.03.10

Face Value: 2.00
No. O Shares % holding
Promoter’s Holding
Indian Promoters 57830555 28.96
Foreign Promoters 51918750 26.00
Sub total 109749305 54.96
Non promoter's holding
Institutional investors
Banks Fin. Inst. and Insurance 9240845 4.63
FII's 59819423 29.96
 Sub total 73281272 36.70
Other investors
Private Corporate Bodies 929225 0.47
NRI's/OCB's/Foreign Others 206596 0.10
Others 1458275 0.73
Sub total 2594096 1.30
General public 14062827 7.04
Grand total 199687500 100.00

b. Tata Motors
Table 3: Share holding Pattern of Tata Motors

Share holding pattern as on: 31.03.10

Face Value: 10.00
No. O Shares % holding
Promoter’s Holding
Indian Promoters 187376876 37.00
Sub total 187376876 37.00
Non promoter's holding
Institutional investors
Banks Fin. Inst. and Insurance 79506752 15.70
FII's 90736036 17.92
Sub total 181123079 35.77
Other investors
Private Corporate Bodies 2978660 0.59
NRI's/OCB's/Foreign Others 27471578 5.43
Direcctors/Employees 239972 0.05
Govt 407181 0.08
Others 62719713 12.39
Sub total 93817104 18.53
General public 44064111 8.70
Grand total 506381170 100.00

c. Maruti Suzuki
Table 4: Share holding Pattern of Maruti Suzuki
Share holding pattern as on: 31.03.10
Face Value: 5.00
No. O Shares % holding
Promoter’s Holding
Foreign Promoters 156618440 54.21
 Sub total 156618440 54.21
Non promoter's holding
Institutional investors
Banks Fin. Inst. and Insurance 40250313 13.93
FII's 61017822 21.12
Sub total 109173024 37.79
Other investors
Private Corporate Bodies 16280136 5.64
NRI's/OCB's/Foreign Others 163096 0.06
Others 166817 0.06
Sub total 16609585 5.75
General public 6508547 2.25
Grand total 288909596 100.00

d. Bajaj Auto
Table 5: Share holding Pattern of Hero Honda

Share holding pattern as on: 31.03.10

Face Value: 10.00
No. O Shares % holding
Promoter’s Holding
Indian Promoters 71786886 49.62
Sub total 71786886 49.62
Non promoter's holding
Institutional investors
Banks Fin. Inst. and Insurance 4682232 3.24
FII's 25774534 17.81
Sub total 35189421 24.32
Other investors
Private Corporate Bodies 12429050 8.59
NRI's/OCB's/Foreign Others 598999 0.41
Others 127902 0.09
Sub total 13155935 9.09
General public 24551252 16.97
Grand total 144683494 100.00

e. Mahindra and Mahindra

 Table 6: Share holding Pattern of Mahindra and Mahindra

Share holding pattern as on: 31.03.10

Face Value: 5.00
No. O Shares % holding
Promoter’s Holding
Indian Promoters 138114984 23.88
Foreign Promoters 14254608 2.46
Sub total 152369592 26.34
Non promoter's holding
Institutional investors
Banks Fin. Inst. and Insurance 119657640 20.69
FII's 135337813 23.40
Sub total 279081526 48.25
Other investors
Private Corporate Bodies 44223273 7.65
NRI's/OCB's/Foreign Others 22122061 3.82
Govt 445132 0.08
Others 30600421 5.29
Sub total 97389943 16.84
General public 49592473 8.57
Grand total 578433534 100.00

From above Table 2 it is clearly seen that in Hero Honda Ltd promoters holding
controlling stake in company. And there is balance between Indian and Foreign
Promoter. After that FII’s investor holding more share i.e. 29.96% in company.

From above Table 3 it can be concluded that Promoters holding controlling

stake in company. There is no foreign Promoter. Tata Motors also provide stock
option for Directors/Employee.
In Maruti Suzuki company promoters holding more share, so they are
controlling company. There is no Indian promoter so company is controlled by
foreign promoter. After that institutional investors are at number two position.

Bajaj Auto is controlled by Indian promoters. There is no foreign promoters.

After that institutional investors have more shares. In other investors general
public holding more shares.

From table 6 it can be concluded that institutional investors have more share in
company. Promoters are at number two position in share holding.
From above it can be concluded that in case of Hero Honda and Maruti Suzuki
the promoters have controlling Stake in the company. While in case of other 3
companied the promoters have average stake of 37.65%. Tata Motors and Bajaj
Auto Promoters have more share than other stockholder. But in case of
Mahindra and Mahindra the Non promoter's holding Institutional investors
share is more.
3) Dividend Policy

Company Face Value EPS Dividend Dividend

(Rs.) (Rs.) paid Payout ratio
(Rs.)
Hero Honda 2.00 102.16 110.00 115.04
Tata Motors 10.00 24.19 15.00 44.28
Maruti 5.00 83.15 6.00 8.09
Suzuki
Bajaj Auto 10.00 123.60 40.00 39.63
Mahindra 5.00 36.19 9.50 29.87
And
Mahindra

a. Hero Honda:- Over the years, the Company has consistently followed a
policy of paying high dividends, keeping in mind the cash generating
capacities, the expected capital needs of the business and strategic
considerations. For 2009-10, the board has recommended a dividend of
1,500 percent higher than 1,000 percent declared in previous year and has
maintained a payout ratio of 31.3 percent vis-a-vis 36.5 percent in the
previous year. Further, board has also declared 4,000 percent interim
dividend on the occasion of 25th year. Celebrating the strength of its
operations and the resulting strong financial position, declared and paid
an interim silver jubilee special Dividend of 4000%. i.e. 80 per equity
share of the face value of Rs.2 each, aggregating to Rs.1597.5 crores. The
dividend, in percentage terms, is the highest pay out by an Indian
company till date. Further the policy laid down by the company in
regards to funds which, if not reinvested for capital investments, should
be optimally distributed to shareholders.
b. Tata Motors:- Considering the Company’s financial performance, the
Directors have recommended a dividend of Rs.10/- each (previous year-
Rs.6/- per share) and Rs.15.50 per share on 64,176,560 ‘A’ Ordinary
Shares of Rs.10/- each (previous year- Rs 6.50 per share) and any further
Ordinary Shares and/or ‘A’ Ordinary Shares that may be allotted by the
Company prior to August 12, 2010 (being the book closure date for the
purpose of the said dividend entitlement) for 2009-10.

c. Maruti Suzuki: - The board recommends a dividend of Rs. 6.00 per equity
share of Rs. 5.00 each for the year ended 31st March 2010 amounting to
Rs.1733 million.

d. Bajaj Auto ltd: - The directors recommend for consideration of the

shareholders at the ensuing annual general meeting, payment of a
dividend of Rs.40 per share, (400 per cent) for the year ended 31 March
2010. The amount of dividend and the tax thereon aggregates to Rs.
6,748.5 million. Dividend paid for the year ended 31 March 2009 was
Rs.22 per share (220 per cent). The amount of dividend and the tax
thereon aggregated to Rs. 3,724 million.

e. Mahindra and Mahindra:- Your Directors are pleased to recommend a

dividend of Rs.8.75 per Ordinary (Equity) Share and also a Special
Dividend of Rs.0.75 per Ordinary (Equity) Share aggregating Rs.9.50 per
Ordinary (Equity) Share of the face value of Rs.5 each, payable to those
Shareholders whose names appear in the Register of Members as on the
Book Closure Date. The Special Dividend is being recommended in the
light of the very successful listing of Mahindra Holidays & Resorts India
Limited Equity Shares on the Stock Exchanges. In recognition of the
impressive performance of the Company, a substantial increase is being
made in the proposed dividend as compared to the dividend of Rs.10 per
Equity Share paid in the previous year. Also the proposed dividend will
be paid on a slightly enlarged capital base of Rs.289.21 crores (as against
Rs.278.82 crores in the previous year). The equity dividend outgo for the
Financial Year 2009-10, inclusive of tax on distributed profits (after
reducing the tax on distributed profits of Rs.17.04 crores payable by the
subsidiaries on the dividends receivable from them during the current
Financial Year) would absorb a sum of Rs.623.75 crores (as against
Rs.312.06 crores comprising the dividend of Rs.10 per Equity Share of
Rs.10 each paid for the previous year).
 4) Return Analyses
Evaluation of Past Returns

The table summarizes are results for ROE for each of our Five firms. The
formula for ROE is
PAT-Preference Dividend / Book Value of equity (Equity Capital
+Reserves and Surplus - Miscellaneous Expenditure)

Hero Honda 2010 2009 2008 2007 2006

ROE 64.41% 33.72 32.41 34.73 48.34

Average over five years 42.72

Tata Motors 2010 2009 2008 2007 2006

ROE 15.16 8.22 25.99 28.00 27.82

Average over five years 21.04

Maruti Suzuki 2010 2009 2008 2007 2006

ROE 21.10 13.04 20.57 22.78 21.81

Average over five years 19.86

Bajaj Auto 2010 2009 2008 2007 2006

ROE 58.06 38.81 47.61 22.35 23.55

Average over five years 38.07

Mahindra and Mahindra 2010 2009 2008 2007 2006

ROE 26.74 16.11 25.52 30.33 29.79

Average over five years 25.70

The table summarizes are results for ROE for each of our Five firms. The
formula for ROE is
PAT-Preference Dividend+interst / Book Value of equity (Equity Capital
+Reserves and Surplus - Miscellaneous Expenditure) + Book Value of Debt

Hero Honda 2010 2009 2008 2007 2006

ROC
63.79 33.38 31.47 33.08 44.96
Average over five years 41.34

Tata Motors 2010 2009 2008 2007 2006

ROC
11.10 6.74 17.75 21.85 22.28
Average over five years 15.94

Maruti Suzuki 2010 2009 2008 2007 2006

ROC
20.00 12.64 19.22 21.37 21.89
Average over five years 19.02

Bajaj Auto 2010 2009 2008 2007 2006

ROC
39.98 20.74 26.04 17.35 18.01
Average over five years 24.43

Mahindra and Mahindra 2010 2009 2008 2007 2006

ROC
28.01 10.52 17.23 21.10 23.51
Average over five years 20.07
VI. Optimal Capital Structure
Current cost of Capital for each firm
YEA
Mahindra
Hero Maruti and
Honda Tata Suzuki Bajaj Mahindra
Cost of 31.23% 12.79% 4.08%
debt 0.45% 31.43%
Cost of 6.78% 2.96% 8.54% 17.15% 6.67%
equity
Cost of 6.82% 8.45%
Capital 5.69% 15.75% 8.79%
R Teradyne KLAC LAM Research AMAT
The average cost of capital for the four firms is 15.975%. In order for all of the
firms to get to their
respective optimal cost of capital (and thus maximize firm value), they all will
have to take on more debt.

Debt Ratio Mahindra

Hero Maruti and
Honda Tata Suzuki Bajaj Mahindra
0%
6.78 2.96 8.54 17.15 6.67
10%
9.23 3.94 8.09 15.48 9.15
20%
11.67 4.93 7.65 13.81 11.62
30%
14.12 5.91 7.20 12.14 14.1
40%
16.56 6.89 6.76 10.47 16.57
50%
19.01 7.88 6.31 8.80 19.05
60%
21.45 8.86 5.86 7.13 21.53
70%
23.90 9.84 5.42 5.46 24.00
80%
26.34 10.82 4.97 3.79 26.48
90%
28.79 11.81 4.53 2.12 28.95
100%
31.23 12.79 4.08 0.45 31.43
Tata
 bajaj
The CSR activities of Bajaj Group are guided by the vision and
philosophy of its Founding Father, Shri Jamnalal Bajaj, who
enunciated the value of Trusteeship in business and laid the
foundation stone for its ethical and value-based functioning.
The core elements of CSR activities include ethical functioning,
respect for all stake-holders, protection of human rights and care
for the environment.
The Company and Bajaj Group generally implements the above
initiatives through its employees, Welfare Funds and Group
NGOs / Trusts / Charitable Bodies operating at various locations
in the country. It also enlists the help of non-Group NGOs, Local
Authorities, Business Associations and Civil Society, wherever
deemed necessary.
Some of the major initiatives taken up during the year under
review are summarised below :-
A. By the Company
Code of conduct and affirmative action
Your company believes that its success is interlinked with the
well-being of all sections of the society and equal opportunity for
all sections. The company continues to ensure no discrimination
of any type to socially disadvantaged sections in the work place.
In the year under review, the company recruited 1182 new
employees, of which 161 (13.62%) belong to weaker sections, in
line with the affirmative action planned by the company. In the
previous year, the same was 6.58%.
Education
Under the Public Private Partnership program (PPP), the company
has undertaken to upgrade 2 Industrial Training Institutes (ITI) in
Pune and one in Pantnagar. During the year, your company took
actions to ensure better quality of output from the Institute and
also followed up with the concerned agencies for approval of
Institute Development Plan. At Ramgarh in Pantnagar, the new
structure is coming up and will be available for the current year.
Economically weaker, brilliant, underprivileged children,
who qualify for the coaching of IIT entrance examination, are
encouraged to seek financial assistance.
Health
The Anti Retroviral Treatment Centre (ART centre) set up by
your company at Yeshwantrao Chavan Municipal Hospital (YCM
Hospital) has registered 3500 patients with 1900 cases under ART
Centre. This centre is now a bench-mark for new centres and is the
largest-one run by industry. The Director General, NACO visited
the ART centre and later CII awarded its recognition to Bajaj Auto
for its initiatives and long-time commitment in the matter.
B. Through Charitable and other Trusts, NGOs
and Group Companies
In addition to the activities carried out by the Group Companies,
numerous charitable and rural development activities are carried
out through its various Trusts / NGOs etc. Some of those are
highlighted below :
1. Jamnalal Bajaj Foundation (JBF – Foundation)
Activities carried out by JBF are highlighted as under :-
AWARDS:
The Foundation gives 4 Awards annually - each of the value of
Rs.5 lakhs. Of these, three are given to individuals in India for
outstanding contribution in the fields of constructive work on
Gandhian lines, application of science and technology for rural
development and uplift and welfare of women and children. The
fourth one is an International Award - given to individuals other
than Indian citizens from foreign countries for their contribution
to the promotion of Gandhian values outside India.
RURAL DEVELOPMENT:
The Foundation has been undertaking rural development work in
select villages of Wardha District, Maharashtra (since 1987) and in
Shikohabad, Dist. Firozabad, U.P. (since 1992).
The activities are undertaken on the basis of the need of the
local people. Special emphasis is given on health, family welfare,
immunisation, supply of potable drinking water, sanitation and
alternative source of renewable energy.
OTHER CHARITABLE ACTIVITIES :
l Employment Generation Programmes
Programmes of employment generation in the rural area have
helped the women-folk and scheduled castes and the poorer
sections to develop self-confidence in themselves.
l School under National Child Labour Project
Schools running with the financial support of National
Child Labour Project (GOI), are monitored and controlled by
JBF. 200 students and 20 staff members are part of these
4 schools.
l Balwadi (Child Training Centre)
Balwadi is a pre-school, where under-privileged children are
taught by trained teachers. The Foundation is running 24
Balwadis i.e. Bal Sanskar Kendra in rural areas for poor children
below six years of age. It also runs free computer training
classes, tailoring classes and stitching classes for poor and
needy people.
Bajaj Auto Limited | 31
l Community Awareness Campaign & Health Camp
The Foundation carried out people-to-people base awareness
programmes about population control, usage of toilet, health,
hygiene etc. and organised health camps for women and
handicapped persons.
2. Jankidevi Bajaj Gram Vikas Sanstha (JBGVS)
During the year under review, JBGVS undertook a number
of development initiatives for economic and environment
development, health care and prevention of HIV / AIDS, basic
education and literacy, women empowerment and social
development.
Activities carried out by JBGVS for community development and
empowerment of women are highlighted below :
Rural Development
The company continued with its rural development activities in
Pune and Aurangabad districts of Maharashtra through JBGVS.
JBGVS aims at integrated development of 43 selected villages,
to be carried out by the villagers under their own leadership
and through unified efforts forged by Government and local
organisations with JBGVS acting as a catalyst. From April, 2010, it
plans to increase the number of villages to 61, which includes
11 villages of Sikar District, Rajasthan, birth place of Late Jamnalal
Bajaj, founder of the Bajaj Group and additional 13 villages in Pune
& Aurangabad districts.
Healthcare
It conducted about 60 health check-up camps, including
camps held in conjunction with Kamalnayan Bajaj Hospital at
Aurangabad. JBGVS runs a mobile clinic, in 20 villages in Pune with
a lady doctor and a nurse to provide primary health care services
at the doorstep of the poor.
Tribal Development
A tribal development project, for 1000 tribal families, called Aamrai was
launched on 21 August 2009. Rahul Bajaj, Chairman, BAL launched the
project. This seven year project involves planting and tending of
27,000 mango trees and 18,000 amla trees on 900 acres of tribal
wasteland and distribution of goats, buffaloes & vermi-compost beds
for 100 landless tribal families. It is a Rs.3.50 crore project to be done
over seven years in partnership with National Bank for Agriculture &
Rural Development (NABARD). The project is expected to generate
about Rs.4 crores annually from 8th year onwards and substantially
improve the quality of life of 1000 tribal families.
3. Trusts for Colleges
l Shiksha Mandal, Wardha founded in 1914 by Late Shri Jamnalal
Bajaj runs seven colleges with around 10,000 students on its
rolls. These include colleges for commerce, science, agriculture,
engineering polytechnic and rural studies. Its mission is to
provide high quality education at an affordable cost & to
inculcate socially desirable values. One of its Colleges, the
Jankidevi Bajaj College of Science has recently been selected
by the University Grants Commission as a College with
Potential for Excellence. Ten of its students appeared in the
University merit list.
Two of its colleges have received UGC grants to run remedial
coaching classes and training for competitive exams for
SC/ST students.
A new Bajaj College of Engineering, funded by a Rs 25 crore
donation from the Bajaj trusts is in the process of being formed.
It is the only educational institution chosen as a resource NGO by
the Maharashtra Government for implementing a Rs.600 crore
project aimed at increasing farmer incomes in Vidarbha.
l Bajaj Science Centre was started in 2007 as a place for middle
and high school children to enjoy science by doing it. For the
last two years, one of its students has bagged a medal in the
national level Homi Bhabha Bal Vaigyanik competition. Its new
Rs 5 crore complex has been funded by the Bajaj trusts and the
fees at the center are subsidised at Rs 100/month.
l Gandhi Vichar Parishad runs a 6 month PG Diploma course on
Gandhian thought, which attracts students from all over India
and recently from abroad too. It organised an international
seminar in November 2009 on the occasion of the centennial
of the publication of Gandhiji’s “Hind Swaraj”.
4. Bajaj Allianz Insurance Companies
Bajaj Allianz initiated a `special awards ceremony’ and gave
away Recognition Awards to `disabled / physically challenged’
individuals under different categories ranging from sports,
entertainment, business, employment and national service. It
was a step to recognise and make a difference to the lives of the
physically challenged in India.
5. Kamalnayan Bajaj Hospital
Kamalnayan Bajaj Hospital, located in Aurangabad in Marathwada
region, is providing super speciality and tertiary care medical
facilities, not available elsewhere in this region. Bajaj Auto with
its group companies, is supporting the Trust, named – MMRI
(Marathwada Medical & Research Institute), which runs the
hospital. In the last one year, hospital has expanded its capacity
from 150 beds to 250 beds and major part of the expansion has
been for general category patients. Recently, it has added cancer
treatment facilities, including Linac Accelerator & Brachy therapy.
Also added are MRI 1.5 Tesla equipment, new generation Siemens
Cath Lab for heart patients, latest ophthalmology equipment and
other advanced facilities.
The hospital has been providing annually relief for close to
55,000 patients on OPD basis and close to 7,000 patients, who
are admitted to hospital for various treatments. It also provides
intensive care unit and cardiac care unit, with a capacity of 22 beds
and generally with an occupancy rate of more than 95%.
The hospital also runs a programme of providing relief to Below
Poverty Line (BPL) and Economically Weaker Section (EWS) of the
society with free / subsidised treatment. It holds camps in the
villages of the district of Aurangabad and close to 400 BPL patients
have been treated at a cost of Rs. 41 lakhs.
The Trust is in the process of starting a Nursing College in 2010-11.
The Group has another 20 Trusts, which are also engaged in many
CSR initiatives. Thus, what is listed above is not exhaustive, but
only illustrative to give a glimpse of the importance being given
by the company and the Group towards CSR.
A publication of the Group “Beyond Profits – Philanthropic
Activities of the Bajaj Group”, setting out in greater detail the CSR
activities of the Group can be made available to any shareholder
on request.

Mnm
Corporate Social Responsibility
From educating a girl child in Udaipur, providing healthcare
to inaccessible areas in Uttarkhand, enabling socially
disadvantaged youth become self reliant in Pune, to
planting a million trees in India, your Company’s Corporate
Social Responsibility (“CSR”) initiatives continue to provide
strategic interventions that help the Nation help itself.
At Mahindra we call it “Transform-nation”.
CSR continues to be an integral part of the vision of the
Mahindra Group and this year too, the Company has
pledged 1% of its Profit after Tax for CSR initiatives, largely
to benefit the socially and economically disadvantaged
sections of Society.
Some of the major initiatives your Company has invested
in are described below:
Mahindra Pride Schools:
Mahindra Pride Schools (“MPS”) unique partnership model
speeds its graduates’ integration into the workforce, where
they earn not only a salary but also the respect of their
family and peers. Since inception in March, 2007, 1,720
students from socially disadvantaged communities have
completed the 3 month course at MPS. MPS provides
these youth with livelihood training in sunshine industries
4
i.e. Hospitality, Customer Relationship Management,
Hardware & Networking and Call Centre Training. All
students are required to undergo mandatory courses in
English, Life skills and computer applications. There has
been 100% placement of all students participating in the
placement process.
Nanhi Kali:
Nanhi Kali, which supports the education of the
disadvantaged girl child has been the flagship programme
of the K. C. Mahindra Education Trust. Nanhi Kali brings
about a complete transformation, by allowing the girls to
attend school and learn with dignity. Nanhi Kali sponsorship
provides not only academic support classes where concepts
of Maths, Science and language are taught to the girls but
also provides uniforms, school bags, shoes, etc. which free
her family from hidden costs of education. The Mahindra
Group independently supports 11,000 girls across India.
With support from thousands of individuals and Corporate
donors, Project Nanhi Kali now supports the education of
over 54,000 underprivileged girl children, in poor urban,
remote rural and conflict afflicted tribal communities across
8 States of India. The goal of Nanhi Kali is to provide
educational support to 1,00,000 underprivileged girls by
2011.
Mahindra All India Talent Scholarships (MAITS):
Instituted in 1995, MAITS are awarded to students from
lower socio-economic strata to enable them to pursue a
job oriented diploma course at a recognised Government
Polytechnic Institute in India. Approximately 500
scholarships are given every year for students who undergo
a three year course. As a result in the last Financial Year,
1,525 students all over India received financial support
through MAITS. Till date, 4,772 students have been MAITS
Scholars. A survey of students who have graduated indicate
that they have got good jobs and the living standards and
economic status of their families have improved.
Gifting Cochlear Implants:
By gifting the power of sound through the donation of
Cochlear Implants, the Mahindra Group has changed the
life and future of 60 profoundly hearing-impaired,
underprivileged children till date. Operations are performed
by Dr. Milind Kirtane, India’s leading ENT surgeon and his
Team. All beneficiaries are hearing impaired children below
the age of 5, belonging to the lower socio-economic strata
of Society.
Bihar Rehabilitation Project:
The river Kosi wreaked havoc in Bihar in 2008 with floods
causing incalculable loss of life and property besides
snatching away the livelihood of lakhs of people in the
State. Following the same, Mahindra Foundation and
Mahindra Consulting Engineers Limited (“MACE”), a
subsidiary of the Company have entered into a
Memorandum of Understanding (“MOU”) with the
Collector, Madhepura District, Bihar to support the
rehabilitation and reconstruction activities in Pattori Gram
Panchayat, Singheswar Block, Madhepura District of Bihar
for those ravaged by the Kosi floods in 2008. Under the
terms of the MOU, MACE would create the complete social
infrastructure in Pattori Gram Panchayat. This
comprehensive programme includes the construction of
permanent houses with provision of basic infrastructural
facilities such as water supply and sanitation.
Employee Social Options:
Employee Social Options (“ESOPs”) is the unique
programme at the Mahindra Group where each employee
can do social work by volunteering in various CSR initiatives.
Till date, 31,317 employees have volunteered in various
initiatives in their local communities. ESOPs were formally
launched in 3 new locations of Mahindra Group – Mahindra
Two Wheelers; Pune, Mahindra Two Wheelers; Pithampur
and Mahindra Retail; Bangalore.