“Cost Analysis” Of Mahindra & Mahindra Ltd.

Subject: CMAF.Y.MBA (Sem-II) Presented By: Alkesh

Mistry (1445)

Presentationon

Mahindra & Mahindra Limited (M&M) is an Indian multinational automobile manufacturing corporation headquartered in Mumbai. It is one of the largest vehicle manufacturers by production in India and the largest seller of tractors across the world. It is a part of Mahindra Group, an Indian conglomerate.

It was ranked as the 10th most trusted brand in India, by The Brand Trust Report, India Study 2014. It was ranked 21st in the list of top companies of India in Fortune India 500 in 2011.

Over the past few years, the company has taken interest in new industries and in foreign markets. They entered the two-wheeler industry by taking over Kinetic Motors in India. M&M also has controlling stake in REVA Electric Car Company and acquired South Korea's SsangYong Motor Company in 2011.

introduction Mahindra & MAhindra

Passenger Cars Manufactured By Mahindra:

Mahindra Scorpio Mahindra Pick-Up in Italy Mahindra Jeep CJ 340 Mahindra Bolero Mahindra XUV 500 Mahindra Quanto Mahindra Axe Mahindra Thar Mahindra Xylo Mahindra Verito

Employees As on 31 March 2013, the company had 34,612 employees, It also

had around 16,000 temporary employees on the same date.

It is a statement which is prepared periodically to provide detailed cost of a cost centre or cost unit. A cost sheet not only shows the total cost but also the various components of the total cost. Period covered by a cost sheet may be a year, a month or a week, etc.

Components of a cost sheet:(i) Prime cost: Direct material + Direct labour + Direct

Expenses(ii) Works Cost: Prime Cost + Factory Overheads(iii) Cost Of Production: Works Cost+ Administration

Overheads(iv) Total Cost Or Cost of Sales: Cost Of Production + Selling

& Distribution Overheads

cost sheet

Particular Amt(2012)In Crore.

Total Amt(2013)In Crore.

Total

Direct Costs:Raw Materials 24,258.94 30,675.27

Prime Cost 24,258.94(76.15%) 30,675.27(75.85%)

Add: Factory Overheads

Power & Fuel Cost175.78(7.16%) 206.39(7.41%)

Employee cost 1,701.78(69.35%) 1,866.45(67.05%)

Depreciation 576.14(23.48%) 2453.70(7.70%) 710.81(25.53%) 2783.65(6.88%)

Gross Works Cost 26712.64(83.86%) 33458.92(82.73%)

Add: Opening stock (WIP)

773.68 794.73

Less: Closing stock(WIP)

794.73 -21.05(-0.06%) 863.48 -68.75(-0.17%)

Net Works Cost 26691.59(83.79%) 33390.17(82.56%)

Add: Selling & Admin. Exps

0 0

Cost Of Production 26691.59(83.79%) 33390.17(82.56%)

Add: Opening Stock FG

1,694.21 2,358.39

Less: Closing Stock FG 2,358.39 -664.18(-2.08%) 2,419.77 -61.38(-0.15%)

Cost of goods sold 26,027.41(81.70%) 33328.79((82.41%)

Total Cost 28,974.63 37,088.34

Profit 2,878.89(9.03%) 3,352.82(8.29%)

Sales 31,853.52 40,441.16

Cost sheet of mahindra & mahindra

C.V.P analysis It is the study of effect on future profit of

changes in fixed cost ,variable cost

BEP and CVP Analysis of Mahindra & Mahindra limited

Particulars 2012 2013

Sales 31853.52 40441.16

Less:Variable cost 24434.72 30881.66

Contribution 7418.80 9559.50

Less: Fixed Cost 2277.92 2577.26

Profit 5140.88 6982.24

BEP and CVP Analysis of Mahindra & Mahindra limited

P/V ratio =Contribution / sales * 100 2012 =7418.80/31853.52*100 =23.29% 2013 = 9559.50/40441.16*100 =23.64%BEP (Rs)=Fixed cost / P/V ratio 2012: =2277.92/23.29% =9780.67 2013=2577.26/23.64% =10902.11

Marginal of safety = Actual sales – BEP sales2012 =31853.52 – 9780.67 =22072.85

2013 =40441.16 – 10902.11 =29539.05

Suppose a company wants to earn a desire profit of Rs. 1,00,000 for the next financial year:

Sales volume to earn a desire profit = Fixed cost + Desire Profit

__________________ P.V. Ratio =6206.68

+ 100000 _______________

23.29% =456018.37 Rs.

THANK YOU