CRISIL has assigned a 'CRISIL GVC Level 1' rating to Mahindra & Mahindra Limited (M&M). The rating indicates that M&M''s capability with regard to corporate governance and value creation for all its stakeholders is the highest.

M&M's levels of corporate governance practices have traditionally been very high, reflecting the management's commitment to the highest standards of corporate conduct. This is reflected in all aspects of the company's functioning. The M&M board provides good strategic direction, and rigorous management oversight.

Independent directors at M&M, who are experts with rich experience in the areas of finance, law, and research & development, comprise a majority on the board, and contribute strongly and meaningfully to board discussions. The company''s competent operating management ably supports the board. M&M's leadership in its core automotive and tractors businesses, and its presence across various segments of the automobile industry, reflect the capabilities of its operating management.

M&M's audit committee has been functional since 1988, long before regulatory reforms mandated the establishment of one. A unique feature at M&M is its strong and independent internal audit function. Besides process controls, the internal audit department is involved in process improvements and transmission of best practices across the M&M group.

M&M has adequate standards of dissemination of corporate, financial, and operational information to all stakeholders.

M&M has a strong value system, and continues to strengthen and institutionalise its governance processes. CRISIL believes that the current management''s openness in adopting appropriate best practices will ensure lasting good governance.

M&M has created consistent and widespread value for all its stakeholders. M&M's equity holders have been rewarded over the long term and its debt holders have been well protected. M&M's value creation for its employees is evident from it featuring among the top employers in India, and it''s focused initiatives to train and nurture talent. M&M also has a track record of exemplary fulfillment of its corporate social responsibilities; the company has earmarked one per cent of its group profits for social causes.

M&M is India's largest multi-utility vehicle (MUV) and tractor manufacturer. It also manufactures light commercial vehicles (LCVs) and three-wheelers. The company currently has nine manufacturing facilities in India for manufacture of utility vehicles, tractors, light commercial vehicles and three-wheelers.

M&M operates through farm equipment (FE) and automotive divisions. The FE division manufactures tractors and implements and the automotive division manufactures the entire range of MUVs, sports utility vehicles, LCVs and three-wheelers. M&M''s range of tractor models includes 'Yuvraj', 'Bhoomiputra', 'Sarpanch' and 'Arjun'. The automotive division''s portfolio includes 'Scorpio', its existing range of MUVs, 'Bolero', 'Maxx' and the 'CL/MM' range of vehicles, and three-wheelers.