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History of the company corporate governance Directors Chairman speech Press releases about the company Products1History of Ashok LeylandFollowing the independence of India, Pandit Jawaharlal Nehru, India’s first Prime Minister, persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive manufacture. The company began in 1948 as Ashok Motors, to assemble Austin cars. The company was renamed and started manufacturing commercial vehicles in 1955 with equity participati
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History of the company corporate governance Directors Chairman speech Press releases about the company Products
1
History of Ashok Leyland
Following the independence of India, Pandit Jawaharlal Nehru, India’s
first Prime Minister, persuaded Mr. Raghunandan Saran, an
industrialist, to enter automotive manufacture. The company began in
1948 as Ashok Motors, to assemble Austin cars. The company was
renamed and started manufacturing commercial vehicles in 1955 with
equity participation by British Leyland. Today the company is the
flagship of the Hinduja Group, a British-based and Indian originated
transnational conglomerate.
Early products included the Leyland Comet bus which was a passenger
body built on a truck chassis, sold in large numbers to many operators,
including Hyderabad Road Transport, Ahmadabad Municipality,
Travancore State Transport, Bombay State Transport and Delhi Road
Transport Authority. By 1963, the Comet was operated by every State
Transport Undertaking in India, and over 8,000 were in service. The
Comet was soon joined in production by a version of the Leyland Tiger.
In 1968, production of the Leyland Titan ceased in Britain, but was
restarted by Ashok Leyland in India. The Titan PD3 chassis was
modified and a five speed heavy duty constant-mesh gearbox utilized,
together with the Ashok Leyland version of the O.680 engine. The
Ashok Leyland Titan was very successful, and continued in production
for many years.
2
Over the years, Ashok Leyland vehicles have built a reputation for
reliability and ruggedness. This was mainly due to the product design
legacy carried over from British Leyland.
Ashok Leyland had collaboration with the Japanese company Hino
Motors from whom the technology for the H-series engines was bought.
Many indigenous versions of H-series engine were developed with 4 and
6 cylinder and also conforming to BS2 and BS3 emission norms in
India. These engines proved to be extremely popular with the customers
primarily for their excellent fuel efficiency. Most current models of
Ashok Leyland come with H-series engines.
An Ashok Leyland bus run by the Chennai Metropolitan Transport
Corporation
In 1987, the overseas holding by Land Rover Leyland International
Holdings Limited (LRLIH) was taken over by a joint venture between
the Hinduja Group, the Non-Resident Indian transnational group
and IVECO Fiat SpA, part of the Fiat Group and Europe's leading
truck manufacturer. Ashok Leyland’s long-term plan to become a
global player by benchmarking global standards of technology and
quality was soon firmed up. Access to international technology and a
US$200 million investment programmed created a state-of-the-art
manufacturing base to roll out international class products. This
resulted in Ashok Leyland launching the 'Cargo' range of trucks based
3
on European Ford Cargo trucks. These vehicles used Iveco engines and
for the first time had factory-fitted cabs. Though the Cargo trucks are
no longer in production and the use of Iveco engine was discontinued,
the cab continues to be used on the 'ecomet' range of trucks.
In the journey towards global standards of quality, Ashok Leyland
reached a major milestone in 1993 when it became the first in India's
automobile history to win theISO 9002 certification. The more
comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998
and ISO 14001 certification for all vehicle manufacturing units in 2002.
In 2006, Ashok Leyland became the first automobile company in India
to receive the TS16949 Corporate Certification. Editor’s note: This is
part of a series of articles peeking into clean car industries and car
manufacturers of China, India, South Korea and Germany.
Among many other goals, Ashok Leyland aims to expand its operations
to penetrate into overseas markets. Included in the company’s plans is
to acquire smaller car manufacturers in China and in other developing
countries. In October 2006, Ashok Leyland bought a majority stake in
the Czech based- Avia. Called Avia Ashok Leyland Motors s.r.o., this
will give Ashok Leyland a channel into the competitive European
market. According to the company, in 2008 the joint venture sold 518
LCVs in Europe despite tough economic conditions. Furthermore, the
company will expand its product offers into construction equipment,
following a joint venture with John Deere. Newly formed in June 2009,
the John Deere partnership is a 50/50 split between the companies. The
company says negotiation is progressing on land acquisition, and the
production plans are in place. The venture is scheduled to start rolling
4
out wheel loaders and backhoe loaders in October 2010. Aside from the
full expansion planned for the company, Ashok Leyland is also paying
close attention to the environment. In fact, they are one of the
companies showing the strongest commitment to environmental
protection, utilizing eco-friendly processes in their various plants. Even
as they thrust into different directions, Ashok Leyland maintains an
R&D group that aims to uncover ways to make their vehicles more fuel
efficient and reduce emissions.
In fact, even before laws were placed on car emissions, Ashok Leyland
was already producing low-emission vehicles. Back in 1997, they have
already released buses with quiet engines and low pollutant emission
based on the CNG technology. In 2002 it developed the first hybrid
electric vehicle. Ashok Leyland has also launched a mobile emission
clinic that operates on highways and at entry points to New Delhi. The
clinic checks vehicles for emission levels, recommends remedies and
offers tips on maintenance and care. This work will help generate
valuable data and garner insight that will guide further development.
When it comes to the development of environmentally friendly
technologies, Ashok Leyland has developed Hythane engines. In
association with the Australian company Eden Energy, Ashok Leyland
successfully developed a 6-cylinder, 6-liter 92 kW BS-4 engine which
uses Hythane (H-CNG,) which is a blend of natural gas and around
20% of hydrogen. Hydrogen helps improve the efficiency of the engine
but the CNG aspect makes sure that emissions are at a controlled level.
A 4-cylinder 4-litre 63 KW engine is also being developed for H-CNG
5
blend in a joint R&D program with MNRE (Ministry of New and
Renewable Energy) and Indian Oil Corporation.
The H-CNG concept is now in full swing, with more than 5,500 of the
technology’s vehicles running around Delhi. The company is also
already discussing the wide-scale use of Hythane engines with the
Indian government. Hythane engines may be expected in the near
future, but these may not be brought to the United States as yet. Ashok
Leyland’s partnership with Nissan is also focusing on vehicle,
powertrain, and technology development listed under three joint
ventures. With impressive investment, the joint ventures will focus on
producing trucks with diesel engines that meet Euro 3 and Euro 4
emission standards.
In the coming years, Ashok Leyland also has some hybrid trucks and
buses in store for its market. The buses and trucks are set to feature a
new electronic shift-by-wire transmission technology as well as
electronic-controlled engine management for greater fuel efficiency.
Ashok Leyland focuses on improving fuel efficiency without affecting
automotive power and the vehicles will have a 5% improvement on fuel
efficiency. Ashok Leyland is also developing electric batteries and bio-
fuel modes.
Ashok Leyland Ltd’s March quarter results were expected to be
impressive, as its monthly vehicle output reports had indicated a 138%
jump in volumes. But what impressed was its net profit growth of
317%, to Rs223 crore, over the year-ago period, even as sales rose by
139%. Ashok Leyland’s operating profit margin rose to 13% compared
6
with 10.5%. Higher volume growth, a better product mix due to higher
sales of multi-axle vehicles and tractor trailers, and cost reduction were
key reasons for margin expansion. Its estimate for volume growth in
2011 is conservative, at 15% compared with over 30% in FY2010.
Around 1,200 buses under the Jawaharlal Nehru National Urban
Renewal Mission scheme are yet to be delivered of the 5,098 ordered.
Besides, it has orders on hand from state transport undertakings for
another 2,000 buses. The firm is investing to increase its capacity, with
Rs1,200 crore proposed for expansion plans over the next two years;
mainly to increase output of engines and new generation cabs. Besides,
it plans to invest Rs800 crore in joint ventures. Analysts believe that its
Uttarakhand plant is expected to deliver 22,000-25,000 vehicles in fiscal
2011, in its first full year of operation. The company has also steadily
gained market share, from 21-22% in the first quarter of 2010 to 28-
29% in the fourth quarter. One concern is that it is not yet a strong
player in the eastern market. Besides, the southern market, traditionally
its stronghold, has grown by only 15% in volume terms in 2010. The
rest of India (mainly north and west) grew by 40% during the year.
An Ashok Leyland-Nissan joint venture produced light commercial
vehicles (LCVs) from the former's House facility near Bangalore as well
as from Renault-Nissan's car plant near Chennai.
7
REPORT ON CORPORATE GOVERNANCE Annual
Report 2010-11
The Remuneration Policy of the Company is
summarized as follows:
The remuneration is governed by the external
competitive environment, track record, potential,
individual performance, Company’s performance and
industry standards. Remuneration is subject to the
approval of the Board of Directors and shareholders.
i) For the Managing Director and for the Managing
Director (Designate)
The total remuneration consists of:
• a fixed component – consisting of salary,
allowances (including Special Allowance) and
perquisites; the perquisites and benefits are in line
with the Company’s Rules for senior managerial
Personnel.
• A variable component – linked to the performance
Of the Company as well as that of the Managing
Director or the Managing Director (Designate), as
The case may be – consisting of Commission as
Determined by the Remuneration Committee.
No sitting fee is payable
ii) For Non-executive Directors
8
Sitting Fee of Rs.20,000/- was paid to each of the
Non-executive Directors for attending the meetings
Of the Board or Committee thereof. All Directors
Are also reimbursed actual travel costs and
Incidental expenses incurred for attending such
Meetings or in connection with the Company’s
Business. There are no pecuniary relationship or
Transactions between any of the Non-executive
Directors and the Company.
No other remuneration was paid to Non-executive
Directors other than the above.
d) The details of remuneration paid/payable to the
Directors for the year 2010-11 are:
i) Non-executive Directors - Sitting Fees: (excluding
reimbursement of travel and other expenses
incurred for the Company’s business).
Annexure-B to Directors’ Report
REPORT ON CORPORATE GOVERNANCE
Rs. Rs.
Mr R J shahaney 2,20,000 Mr f sahami 1,80,000
Mr dheeraj G Hinduja 2,60,000 Mr sanjay K Asher 80,000
Mr Anil Harish 2,40,000 Mr shardul s shroff nil
Mr d J Balaji Rao 3,40,000 dr V sumantran 2,20,000
Mr A K das 1,40,000 Mr Anders spare 1,20,000
Mr Jean Brunol 40,000 Mr prabal Banerjee 20,000
Mr Ramachandran R Nair (**) 60,000
9
(**) Amount paid to Lick of India by means of cheque30 Ashok
Leyland Limited
5. Shareholders/Investors Grievance
Committee
a) The Shareholders/Investors Grievance Committee was
constituted in 2000. The Committee consists of Mr
Sanjay K Asher, an Independent Director as Chairman
(Mr R J Shahaney was the Chairman up to 20/10/2010),
Mr D J Balaji Rao, an Independent Director as a
member and Mr R Seshasayee, Executive Vice
Chairman as a member.
b) The Committee approves issue of new share
certificates and looks into investor complaints/
grievances on a periodical basis.
c) The Committee also reviews the performance of
the Company’s Registrar & Transfer Agent (R&TA)
and their system of dealing with and responding to
correspondence from all categories of shareholders.
The manner and timeliness of dealing with complaint
letters received from Stock Exchanges/ SEBI/ Ministry
of Corporate Affairs etc., and the responses thereto
are reviewed by this Committee.
d) Based on the delegated powers of the Board
of Directors, the Managing Director/Managing
Director(Designate) approved the share transfers/
transmissions on a fortnightly basis and the same
reported to at the next meeting of the Committee,
10
normally held every quarter.
e) Mr A R Chandrasekharan, Executive Director and
Company Secretary is the Secretary to the Committee
and is also the Compliance Officer appointed for the
compliance of capital market related laws.
f) Meetings and Attendance during the year 2010-11:
April 29, 2010 3
July 27, 2010 3
October 20, 2010 3
January 22, 2011 3
During the year, 2459 complaint/correspondence
letters were received from investors (including 23
letters from SEBI / Stock Exchanges/ MCA); 1983
Annexure-B to Directors’ Report
11
Directors
Mr. Dheeraj Gopichand Hinduja
Mr. Anil Harish
Mr. D. J. Balaji Rao
Mr. A. K. Das
Mr. Jean Brunol
12
Mr. Jorma Antero Halonen
Mr. Sanjay K. Asher
Mr. F. Sahami
Mr. Shardul S. Shroff
Mr. R. Seshasayee
Mr. Vinod K. Dasari
Dr. V. Sumantran
13
Board committee
AUDIT COMMITTEE
Mr. Anil Harish, Chairman
Mr. D.J. Balaji Rao
Mr. F. Sahami
Mr. Sanjay K. Asher
SHAREHOLDERS/INVESTORS GRIEVANCE COMMITTEE
Mr. Sanjay K. Asher (Chairman)
Mr. D. J. Balaji Rao
Mr. R. Seshasayee
NOMINATION AND COMPENSATION COMMITTEE
Mr. D. J. Balaji Rao (Chairman)
Mr. Dheeraj G. Hinduja
Mr. Anil Harish
Mr. A. K. Das
Mr. A. R. Chandrasekharan is the Secretary for all the Committees.
14
Chairman speech
You will be pleased to note that 2010-11 was another successful year for
Ashok Leyland. Taking advantage of a buoyant domestic market and
recovering traditional export markets, Your Company has set a new
watermark by selling 94,106 commercial vehicles, the highest ever in its
history, registering an increase of 47% over the previous year.
The domestic commercial vehicle volume grew in 2010-11 by 27%
within which Ashok Leyland present core medium and heavy segment
was up by 32%. In the medium and heavy segment, you will be happy to
know that your Company has been able to maintain its leadership
position in the bus segment and register share increase in every truck
segment. The export volume has surged by 72% over the previous year
to 10,306 vehicles with footprints in some new markets. The sales
turnover has increased to Rs 11,117.71 Crores (+53.5% YOY) and Net
Profit to Rs 631.30 Crores (+49% YOY). There have also been
significant gains in the Spare Parts, Defense and Power Solutions
businesses. On your behalf, I would like to record my appreciation for
the creditable performance from the Ashok Leyland team during the
year that went by.
Looking in Retrospect
As you are probably aware, your Company is taking strides to realize
the Vision of becoming global. In that journey, in addition to the
15
strengthening of the position in the Indian market, last year witnessed
some significant developments, which I would like to highlight.
Your Company acquired a 26% controlling stake in Optare pic, U.K. a
reputed bus manufacturer with a proven experience in hybrid and
electric vehicles. They manufacture a range of urban buses with integral
architecture including the iconic Solo midi
Bus range. The acquisition will further strengthen the leadership
position of your Company in the domestic market and is also expected
to open up new frontiers in the developed markets.
In the medium and heavy truck segment, as you are aware, your
Company has introduced the versatile future ready - U-truck that will
cover the 16-49 Tonne GVW/GCW range and the initial feedback from
the market has been very encouraging. Further range extension would
follow progressively.
To build on the platform as the largest supplier of logistics vehicles to
the Indian Army and leverage on the overseas opportunities in the
segment, your Company has promoted a new entity Ashok Leyland
Defense Systems. To extend the product line-up to include tactical
vehicles and develop other advanced defense systems, a MoU has been
signed with the renowned Krauss-Maffei Wegmann (KMW) of
Germany.
On the export front, forays have been made into Russia, Ukraine and
Mozambique which are new market extensions.
16
Registering the highest ever R&D spend in a year of Rs 312.62 Crores,
Your Company has widened the fully built offerings in bus and truck
and has undertaken focused efforts across the range to further improve
product performance, fuel efficiency and durability, the hallmarks of
Ashok Leyland products.
I am also happy to share with you that Hinduja Leyland Finance, which
finances vehicle purchase, has grown significantly during the year.
Ramping up quickly, in its second year of operations it has disbursed
over Rs 1200 Crores, Operating from 420 locations in 20 States with
nearly 700 employees, Hinduja Leyland Finance provides solid support
to your Company’s growth in volumes.
You are aware of the enlarging profile of Ashok Leyland that includes
an equal JV with John Deere, U.S.A, for construction equipment, a
growing Power Solutions Business, an end-to-end Engineering Services
& Business Consultancy and a high technology emissions solutions
company based in Germany. Some of these initiatives are aimed at de-
risking against cyclically in the bus and truck business and some
opportunistic.
Looking into the future
Building on the strengths of extending product line- up, growing sales
volume and product engineering capability, as the next logical step,
your Company has charted out an aggressive plan of volume growth to
17
be among the Global Top 10 players in trucks in the category of 7.5
Tonne GVW and above and Top 5 in buses in the category of 8m and
above, within the next 5 years. The well-developed R&D infrastructure
now has over 1000 engineering professionals and is still growing. Apart
from maintaining the thrust to develop and position conventional
products and options to global standards, your Company’s R&D has
clear road maps for alternate propulsion and advanced engineering
activities also.
Contemporary cabins developed in-house and the globally
benchmarked, best-in-class Neptune engines for the intermediate,
medium and heavy truck range will enable progressive launch of a slew
of products that can compete well in the global markets.
In the growing intermediate vehicle range, action is already on hand to
renew the current Ecomet models with a major upgrade aimed at both
domestic and overseas markets.
Market extensions are being vigorously pursued. Breakthroughs are
expected soon in South Africa, Middle East, Russia, CIS, Latin America
and some growing markets in the Far East.
To address the evolving trends in freight transportation in the country,
your Company’s truck range gets further reinforced with the LCV
range (3-6 Tonne GVW) through the equal JV with Nissan Motors. I am
happy to inform that the first of the series under this co-operation,
unveiled as Ashok Leyland DOST is planned for launch this year in the
18
3 Tonne truck category. This would be followed by the 6 Tonne range
and subsequently by an award-winning passenger minivan.
2011-12 should also see the launch of the backhoe, first of the
construction equipment range from the JV with John Deere.
In parallel to the product-market initiatives, there is emphasis on
creating a vibrant organization commensurate with the challenges
ahead. To steer your Company through this crucial period, Mr. R
Seshasayee has been elevated by the Board to the position of Executive
Vice Chairman and Mr. Vinod Dasari as the Managing Director. I
would like to congratulate them both and wish them every success.
In this context, I wish to record my deepest respect and regard for the
invaluable contribution and exemplary professionalism of Mr. R J
Shahaney who has stepped down as Chairman since the last Annual
General Meeting. To recognize his invaluable contribution to your
Company over the last 32 years and to continue to benefit from his
extensive experience and wisdom, the Board has conferred on him the
status of Chairman Emeritus. Please join me in wishing Mr. Shahaney
good health and happiness in the future.
I gratefully acknowledge the confidence and faith reposed by the
shareholders on the Board and the Management team which has, in my
view, spurred the Company to take on more challenges. I have great
pleasure in announcing that taking into account the performance and
prospects, the Board has recommended issuance of bonus shares in the
19
ratio of 1:1. I am aware that you have been waiting for a bonus issue for
some time now and I must thank you for your patience.
Finally, I must applaud the tireless efforts, dedication and commitment
of our employees who have helped us reach where we are now and look
forward to the benefit and comfort of their association in the journey
forward. On behalf of your Company, I sincerely appreciate the loyalty
and support of the extended family of dealers and countless customers
as we re-dedicate ourselves to serve them better.
Looking forward to your continuing support,
Yours sincerely,
Dheeraj G Hinduja Chairman, Ashok Leyland Limited
Dated: June 16, 2011
20
Press releases about the company
Net profit up 54%
EBITDA also up 27%
Hinduja Group flagship, Ashok Leyland has reported a 29% increase in
its revenue for the third quarter of the current fiscal at Rs. 2,880 crores
as against Rs. 2,227 crores for the corresponding quarter of 2010-11.
Net profit for the quarter was up by 54% at Rs. 67 crores (Rs. 43
crores). EBITDA was up 27%. Sales volume for the quarter witnessed a
healthy increase of 26% at 23,175 nos. (18,437 nos.).
Employee Cost rose by 12% at Rs. 272 crores (Rs. 244 crores) on the
back of bonus payouts in the quarter. Other Expenditure increased by
42% at Rs. 268 crores as against Rs. 189 crores for the corresponding
quarter of the previous fiscal as also did Financial Expenses, up by 16%
at Rs. 55 crores (Rs. 47 crores) due to increase in working capital and
higher interest costs on CAPEX loans.
Production volume for the quarter improved by 25% at 24,153 nos.
(19,291 nos).
For the nine months ended December 2011, sales revenue was higher by
16% at Rs. 8,470 crores (Rs. 7,289 crores). Net profit was, however,
down 7.8% at Rs. 307 crores (Rs 333 crores).
21
"Despite a substantial improvement in our quarter sales and profits, Q3
was a challenging one due to a few supply chain issues," said Mr. Vinod
K. Dasari, Managing Director, Ashok Leyland. "These have since been
resolved. STU demand was weaker in Q3 but is expected to bounce back
in Q4. The initial feedback from customers for DOST have been very
favorable and we are quickly ramping up production to meet the
demand," added Mr. Dasari.
22
Applications: Tarmac Coach
Engine: H Series 4 cylinder BS3
Maximum Power: 120 hp (88 kW) @ 2400 rpm
Maximum Torque: 400 nm (41 mkg) @ 1600 rpm
Gearbox: Automatic transmission
Rear Axle: Fully floating, hypoid gear
Front Suspension: Air suspension
Rear Suspension: Air suspension
Steering: Integral Power steering
Brakes: Full air brakes
Wheelbase: 5100 mm
Overall Length: 11000 mm
Tyres: 10R20 - 16 PR
GVW: 13000 kg
Floor height: 380 mm stepless entry
23
Applications: City bus - 42 seats BRTS one / two door(s) - ahead of
front axle / rear overhang
Engine: "H" Series - 6 CYL. CNG BS4
Maximum Power:124 hp (92 kW) @ 2400 rpm
Maximum Torque: 42.8 mkg (416 nm) @ 1200 rpm
Gearbox: 5 Speed Synchromesh
Clutch: 353 mm dia single plate dry type
Rear Axle: Fully floating, single reduction hypoid axle
Front Suspension: Rubber ended suspension
Rear Suspension: air suspension
Steering: Integral Power steering
Brakes: Full air brakes
Wheelbase: 5639 mm
Overall Length: 10931 mm
Tyres: 10R20 - 16 PR
GVW: 16200 kg
24
Seats: 42
Applications: Voluminous material movement at ports & Surface
transportation
Engine: H Series HA57L165 CRS - BS3 turbocharged intercooled
Power: 225 hp @ 2500 rpm
Torque: 800 nm @ 1400-1900 rpm
Clutch: Axial type 381 mm dia with organic lining and actuated by
clutch booster
Transmission: 9 speed GB - First Gear Ratio (FGR) - 8.83:1, Crawler
Gear Ratio (CGR) - 12.73:1
Suspension: Heavy duty bogie in rear
Cabin: Factory built G91 day cab with sleeping provision; a/c option
Tyre: 11.00 x 20 - 16 PR nylon ply
Max speed: 82 kmph
Grade ability: 33%
GVW: 31000 kgs
25
Wheelbase: 5250 mm
Body Capacity: 19 cum box 22 cum box
Applications: Construction, roadwork, coal
Engine: H Series HA6ETI3K BS3 turbocharged intercooled
Power: 160 hp @ 2400 rpm
Torque: 550 nm @ 1500 -1700 rpm
Clutch: Axial type 352 mm dia with organic lining and mechanical
actuation
Transmission: 6 speed OD GB - First Gear Ratio (FGR) - 8.28:1
Suspension: Semi Elliptical multileaf
Cabin: G45 FES and cabin
Tyre: 10.00 x 20 - 16 PR nylon - ply
Max speed: 96 kmph
Grade ability: 27%
GVW: 16200 kgs
Variants: 1616 1616 XL
26
Wheelbase: 2920 3607
Body Capacity: 4.5 cum Box UBT & 6.5 cum box UBT&FET
6 cum box UBT , 8.5 cum box UBT & FET, 10.5 cum Box FET, 8.5 cum
scow FET and 7.5 cum rock UBT
Applications: Market load, construction, cement, Tankers
Engine: HA135LT3
Power: 180 hp @ 2400 rpm
Torque: 550 nm @ 1500 - 2100 rpm
Clutch: 15" facing dia clutch with superior lining material & booster
Transmission: ZF S6 36 FGR 8.51
Suspension: Semi elliptical laminated multileaf
Cabin: Factory built G45 Cowl
Tyre: 10.00 x 20 - 16 PR Nylon - radial option available
27
Max speed: 76 kmph
Grade ability: 15.03%
GVW: 31000 kgs
Wheelbase: 5200 mm
Loading span: 24.5 feet
Applications: Cement, Steel, ODC
Engine: H Series CRS BS III
Power: 225 hp @ 2500 rpm
Torque: 800 nm @ 1400-1900 rpm
Clutch: 380 mm dia disc with organic lining actuated with clutch
boosters
Transmission: 9 speed synchromesh GB (ZF9S1110); First Gear
Ratio 8.83:1, Crawler Gear Ratio 12.73:1
Front : Parabolic suspension Rear : Semi elliptic multileaf; bogie option
28
Cabin: Factory built G91 sleeper cab
Tyre: 11.00 x 20 - 16 PR cross ply; radial tyres optional
Max speed: 80 kmph
Grade ability: 21%
GVW: 49000 kgs (with tri-axle trailer)
Wheelbase: 3900 mm
RATIO ANALYSIS
GROSS PROFIT
NET PROFIT
RETURN ON NET WORTH
FIXED ASSET TURNOVER RATIO
CURRENT RATIO
LIQUIDITY RATIO
INVENTORY TURNOVER RATIO
DEBTORS TURNOVER RATIO
DIVIDEND PAYOUT RATIO
EARNING PER SHARE
29
GROSS PROFIT
Definition of gross profit ratio:
Gross profit ratio (GP ratio) is the ratio of gross profit to net
sales expressed as a percentage. It expresses the relationship
between gross profit and sales.
Formula:
Following formula is used to calculate gross profit ratios:
[Gross Profit Ratio = (Gross profit / Net sales) × 100]
30
Significance:
Gross profit ratio may be indicated to what extent the selling prices of
goods per unit may be reduced without incurring losses on operations.
It reflects efficiency with which a firm produces its products. As
the gross profit is found by deducting cost of goods sold from net sales,
higher the gross profit better it is.
YEAR 2007 2008 2009 2010 2011
GROSS PROFIT 773.49 877.99 519.05 833.29 1232.89
SALES 7358.88 7972.52 6168.99 7436.18 11407.15
GROSS PROFIT RATIO 10.51 11.01 8.41 11.20 10.80
31
Interpretation
In the year 2007 gross profit ratio was 10.51. It was increased in 2008
11.01 .But in 2009 gross profit ratio was decreased 8.41 and it was lower
in comparing with last five year. 2010 ratio is increased with 2.79%. But
in 2011 ratio was decreased with 0.4%. In 2011 sale is higher even gross
profit.
NET PROFIT RATIO
Definition of net profit ratio:
Net profit ratio is the ratio of net profit (after taxes) to net sales. It is
expressed as percentage.
Formula:
Net Profit Ratio = (Net profit / Net sales) × 100
32
Significance:
NP ratio is used to measure the overall profitability and hence it is very
useful to proprietors. The ratio is very useful as if the net profit is not
sufficient, the firm shall not be able to achieve a satisfactory return on
its investment.
Higher the ratio the better is the profitability. But while interpreting the
ratio it should be kept in minds that the performance of profits also is
seen in relation to investments or capital of the firm and not only in
relation to sales.
YEAR 2007 2008 2009 2010 2011
NET PROFIT 441.29 469.31 190.00 423.68 631.30
NET SALES 7358.88 7972.52 6168.99 7436.18 11407.15
NET PROFIT RATIO 5.99 5.88 3.07 5.69 5.53
33
Interpretation
In 2007 net profit ratio is 5.99 and 2008 ratio is decreased with 0.10%.
2009 ratio is decreased with 2.81% comparing with 2008. But 2010 ratio
is increased up to 2.62%. 2011 ratio is decreased 5.53
Return on Shareholders Investment or Net worth Ratio:
Definition:
It is the ratio of net profit to share holder's investment. It is
the relationship between net profit (after interest and tax) and share
holder's/proprietor's fund.
34
This ratio establishes the profitability from the share holders' point of
view. The ratio is generally calculated in percentage.
Formula of return on shareholder's investment or net
worth Ratio:
[Return on share holder's investment = {Net profit (after interest and
tax / Share holder's fund}
Significance:
This ratio is one of the most important ratios used for measuring the
overall efficiency of a firm. As the primary objective of business is to
maximize its earnings, this ratio indicates the extent to which this
primary objective of businesses being achieved. This ratio is of great
importance to the present and prospective shareholders as well as the
management of the company. As the ratio reveals how well the
resources of the firm are being used, higher the ratio, better are the
results. The inter firm comparison of this ratio determines whether the
investments in the firm are attractive or not as the investors would like
to invest only where the return is higher.
year 2007 2008 2009 2010 2011
Net profit 441.29 469.31 190.00 423.67 631.30
Share holders 132.39 133.03 133.03 133.03 133.03
Return on net worth 3.33 3.52 1.42 3.18 4.74
35
3.333.52 1.42
3.18
4.74
2002
2004
2006
2008
2010
2012
2014
2016
1 2 3 4 5
Return on Net worth
net worth
year
Interpretation
In year 2007 net on net worth ratio is 3.33. But in 2008 ratio increased is
3.52 and 2009 ratio is decreased 1.42 because net profit is decreased.
2010 ratio increased 3.18 comparing with 2009. Net profit is increased
in 2011 and ratio was 4.74 comparing with last five year.
36
Fixed Assets Turnover Ratio:
Definition:
Fixed assets turnover ratio is also known as sales to fixed assets ratio.
This ratio measures the efficiency and profit earning capacity of the
concern.
Higher the ratio, greater is the intensive utilization of fixed assets.
Lower ratio means under-utilization of fixed assets. The ratio is
calculated by using following formula:
Formula of Fixed Assets Turnover Ratio:
Fixed assets turnover ratio turnover ratio is calculated by the following
formula:
Fixed Assets Turnover Ratio = Cost of Sales / Net Fixed Assets
Year 2007 2008 2009 2010 2011
Cost of sales 7358.88 7972.52 6168.99 7436.18 11407.15
Net fixed assets 1307.04 1525.55 3399.11 4249.56 4633.79
FATO ratio 5.63 5.22 1.81 1.74 2.46
37
Interpretation
Fixed asset turnover ratio of 2007 is 5.63 but in 2008 & 2009 ratio is
deceased from 5.22 to 1.81. 2010 ratio is deceased 1.74 this lower ratio
comparing to last five year.
38
-1
1
3
5
7
Fixed assets turnover ratio
year 2007 2008 2009 2010 2011
Fato ratio 5.63 5.22 1.81 1.74 2.46
1 2 3 4 5
CURRENT RATIO
Definition :
Current ratio may be defined as the relationship between current
assets and current liabilities. This ratio is also known as "working
capital ratio". It is a measure of general liquidity and is most widely
used to make the analysis for short term financial position or liquidity
of a firm. It is calculated by dividing the total of the current assets by
total of the current liabilities.
Formula:
Following formula is used to calculate current ratio:
Current Ratio = Current Assets / Current Liabilities
Or
Current Assets: Current Liabilities
Significance :
A relatively high current ratio is an indication that the firm is liquid
and has the ability to pay its current obligations in time and when they
become due. On the other hand, a relatively low current ratio represents
that the liquidity position of the firm is not good and the firm shall not
be able to pay its current liabilities in time without facing difficulties.
39
YEAR 2007 2008 2009 2010 2011
CURRENT ASSET 1681.75 1644.30 2374.91 2849.22 3573.64
CURRENT LIABILITES 1865.97 2196.49 2207.29 3002.68 3505.26
CURRENT RATIO 0.90 0.74 1.07 0.94 1.01
Interpretation
The rule of thumb of current ratio is 2:1 the ratio and here it shows a
fluctuating. In year 2007 ratio was 0.90 it not good. After 2007 ratio was
going on deceased 0.74 in 2008. But 2009 ratio is increased up to 1.07. In
2010 ratio again decreased because of current liabilities’ but 2011 ratio
is increased up to 1.01.
40
00.2
0.4
0.60.8
1
1.2
1.41.6
1.8
2
1 2 3 4 5
current ratio
year
current ratio
Liquid or Liquidity or Acid Test or Quick Ratio:
Definition:
Liquid ratio is also termed as "Liquidity Ratio",”Acid Test Ratio" or
"Quick Ratio". It is the ratio of liquid assets to current liabilities. The
true liquidity refers to the ability of a firm to pay its short term
obligations as and when they become due.
Formula of Liquidity Ratio / Acid Test Ratio:
[Liquid Ratio = Liquid Assets / Current Liabilities]
Significance:
The quick ratio/acid test ratio is very useful in measuring the liquidity
position of a firm. It measures the firm's capacity to pay off current
obligations immediately and is more rigorous test of liquidity than the
current ratio. It is used as a complementary ratio to the current ratio.
Liquid ratio is more rigorous test of liquidity than the current ratio
because it eliminates inventories and prepaid expenses as a part
of current assets. Usually high liquid ratios and indication that the firm
is liquid and has the ability to meet its current or liquid liabilities in
time and on the other hand a low liquidity ratio represents that the
firm's liquidity position is not good. As a convention, generally, a quick
ratio of "one to one" (1:1) is considered to be satisfactory.
41
YEAR 2007 2008 2009 2010 2011
QUICK ASSET
611.43 420.39 1044.9 1210.98 1364.74
CURRENT LIABILITIES
1865.97 2196.49 2207.29 3002.68 3505.26
Liquid RATIO
0.32 0.19 0.47 0.40 0.38
Interpretation
According to rule ratio must be high it indicate that firm or company is
in good position. But in 2007 ratio was not good because ratio is low last
five year ratio going on decreased. In 2009 ratio is increased up to 0.47
this is highest ratio comparing to five year
42
Inventory Turnover Ratio or Stock Turnover Ratio (ITR):
Every firm has to maintain a certain level of inventory of finished goods
so as to be able to meet the requirements of the business. But the level of
inventory should neither be too high nor too low.
A too high inventory means higher carrying costs and higher risk of
stocks becoming obsolete whereas too low inventory may mean the loss
of business opportunities. It is very essential to keep sufficient stock in
business.
Definition:
Stock turn over ratio and inventory turn over ratio are the same. This
ratio is a relationship between the cost of goods sold during a particular
period of time and the cost of average inventory during a particular
period. It is expressed in number of times. Stock turn over
ratio/Inventory turn over ratio indicates the number of time the stock has
been turned over during the period and evaluates the efficiency with
43
which a firm is able to manage its inventory. This ratio indicates
whether investment in stock is within proper limit or not.
.
Formula of Stock Turnover/Inventory Turnover Ratio :
The ratio is calculated by dividing the cost of goods sold by the amount
of average stock at cost.
(a) [Inventory Turnover Ratio = Cost of goods sold / Average inventory at cost] (b) [Inventory Turnover Ratio = Net Sales / Average Inventory at Cost](c) [Inventory Turnover Ratio = Net Sales / Average inventory at Selling Price](d) [Inventory Turnover Ratio = Net Sales / Inventory]
Significance of ITR :
Inventory turnover ratio measures the velocity of conversion of stock
into sales. Usually a high inventory turnover/stock velocity indicates
efficient management of inventory because more frequently the stocks
are sold; the lesser amount of money is required to finance the
inventory. A low inventory turnover ratio indicates an inefficient
management of inventory.
44
Year 2007 2008 2009 2010 2011
Cost of good sold 6585.39 7094.53 5649.94 6602.89 10174.26
Average inventory 1070.32 1223.91 1330.01 1638.24 2208.90
Inventory turn over ratio
6.15 5.76 4.24 4.03 4.60
Interpretation
45
Inventory turn over ratio of 2007 is higher it show that company is in
good position. But after 2007 ratio is decreased 2008 & 2009 ratio is 5.76
& 4.24 in 2010 ratio is low comparing to last five year because if average
inventory. Last year ratio is higher.
Debtors Turnover Ratio /Accounts
Receivable Turnover Ratio:
A concern may sell goods on cash as well as on credit. Credit is one of
the important elements of sales promotion. The volume of sales can be
increased by following a liberal credit policy.
Definition:
Debtor’s turnover ratio or accounts receivable turnover ratio indicates
the velocity of debt collection of a firm. In simple words it indicates the
number of times average debtors (receivable) are turned over during a
year.
Formula of Debtors Turnover Ratio:
Debtors Turnover Ratio = Net Credit Sales / Average Trade Debtors
Significance of the Ratio:
Accounts receivable turnover ratio or debtor’s turnover ratio indicates
the number of times the debtors are turned over a year. The higher the
46
value of debtor’s turnover the more efficient is the management of
debtors or more liquid the debtors are. Similarly, low debtors turnover
ratio implies inefficient management of debtors or less liquid debtors. It
is the reliable measure of the time of cash flow from credit sales. There
is no rule of thumb which may be used as a norm to interpret the ratio
as it may be different from firm to firm.
year 2007 2008 2009 2010 2011
Net credit sales 8513.93 9178.82 6826.96 8071.74 12393.36
Average trade debtors 522.88 375.84 957.97 1022.06 1185.21
Debtors turn over ratio 16.28 24.42 7.12 7.89 10.4
1 2 3 4 5
year drstor0
5
10
15
20
25
30
Debtors turn over ratio
year
drstor
47
Interpretation
In 2007the ratio was 16.28 time and it increased to 24.42 in 2008. But in
2009 ratio decreased to 7.12 and 2010 slightly increased up to 7.89 in
2011 ratio is increased 10.4 times this highest comparing to last two
years 2009&2010.
It implies in efficient management of the company in reducing
its sales and increasing the net credit sales.
Dividend Payout Ratio:
Dividend payout ratio is calculated to find the extent to which earnings
per share have been used for paying dividend and to know what portion
of earnings has been retained in the business. It is an important ratio
because plaguing back of profits enables a company to grow and pay
more dividends in future.
Formula of Dividend Payout Ratio:
Following formula is used for the calculation of dividend payout ratio
Dividend Payout Ratio = Dividend per Equity Share / Earnings per
Share
A complementary of this ratio is retained earnings ratio. Retained
earning ratio is calculated by using the following formula:
48
Retained Earning Ratio = Retained Earning Per Equity Share / Earning
Per Equity Share
Significance of the Ratio :
The payout ratio and the retained earning ratio are the indicators of the
amount of earnings that have been ploughed back in the business. The
lower the payout ratio, the higher will be the amount
of earnings ploughed back in the business and vice versa. A lower
payout ratio or higher retained earnings ratio means a stronger
financial position of the company
year 2007 2008 2009 2010 2011Dividend 150 150 110 150 200EPS 5.09 6.24 5.20 6.81 9.08Dividend pay out ratio
29.4 24.0 19.23 22.02 22.02
49
Dividend Payout ratio
0
5
10
15
20
25
30
1 2 3 4 5 6
Year
Rti
o year
DPR
Interpretation
According to significance higher ratio mean company finance position is
good. In 2007 ratio is good 29.4 and 2008 ratio was decreased 24.0.
Again ratio was decreased 19.23 in 2009. But ratio is increased because
of earning per share was increased and 2011 ratio was 22.02
Earnings per Share (EPS) Ratio:
Definition:
Earnings per share ratio (EPS Ratio) are a small variation of return on
equity capital ratio and is calculated by dividing the net profit after
taxes and preference dividend by the total number of equity shares.
Formula of Earnings per Share Ratio:
The formula of earnings per share is:
Earnings per share (EPS) Ratio = (Net profit after tax
− Preference dividend) / No. of equity shares (common shares)
Significance:
The earnings per share are a good measure of profitability and when
compared with EPS of similar companies, it gives a view of the
comparative earnings or earnings power of the firm. EPS ratio
50
calculated for a number of years indicates whether or not the earning
power of the company has increased.
Year 2007 2008 2009 2010 2011Net profit 631.30 423.67 190.00 469.31 441.29Equity share
132.39 133.03 133.03 133.03 133.03
EPS ratio 4.76 3.18 1.42 3.52 3.31
Interpretation
In 2007 ratio was good comparing last five year. After that ratio is
decreased in 2008 &2009 that is not good for the company 3.18 &1.42.
But 2010 ratio is increased up to 3.52 and then again it decreased in
2011.
51
EPS Ratio
0
1
2
3
4
5
2006 2007 2008 2009 2010 2011 2012
Year
Rat
io EPS
STATISTICAL ANALYSIS
1. SALES TREND
2. NET PROFIT TREND
3. WORKING CAPITAL TREND
4. DIVIDEND TREND
52
Year Sales Sales trend2007 7358.88 6556.7042008 7972.52 7312.7242009 6168.99 8068.7442010 7436.18 8824.7642011 11407.15 9580.7842012 10337.804 10336.802013 11092.824 11092.82
Note: Expected value for the year of 2012 & 2013 (10336.80 &11092.82).
These values are finding on the base sales value
a= Ey/n
53
b=Exy/x2
y= a+b(x)
a= 40343.72/5 =8068.744
b= 7560.2/10=756.02
YEAR NET PROFIT NET PROFIT TREND
2007 441.29 364.2382008 469.31 397.6762009 190.00 431.1142010 423.67 464.5522011 631.30 497.9902012 531.428 531.4282013 564.866 564.866
Note: Expected value for the year 2012 & 2013 (531.428 & 564.866). These
values are finding on base of net profit.
54
a= Ey/n
b=Exy/x2
y= a+b(x)
a= 2155.57/5 = 431.114
b= 334.38/10=33.438
YEAR WORKINGCAPITAL
WORKING CAPITALTREND
2007 407.70 49.6342008 661.08 336.7672009 1043.19 623.92010 619.71 911.0332011 387.82 1198.1662012 599.561 1485.2992013 591.448 1772.432
55
Note: Expected value for the year 2012 & 2013 (1485.299 & 1772.432).
These values are finding on base of working capital..
a= Ey/n
b= Exy/x2
y= a+b(x)
a= 3119.5/5 = 623.9
b= 2871.33/10=287.133
Year Dividend Dividend trend2007 150 1302008 150 1402009 100 1502010 150 1602011 200 1702012 180 1802013 190 190
56
Note: Expected value for the year 2012 & 2013 (180 &190). These values
are finding on base of Dividend.
a= Ey/n
b= Exy/x2
y= a+b(x)
a= 750/5 = 150
b= 100/10=10
CORRELATION ANALYSIS
SALE SAND NET PROFIT
SALES AND DIVIDEND PAID
NET PROFIT AND DIVIDEND PAID
DIVIDEND PER SHARE AND EARNING PER SHARE
WORKING CAPITAL AND NET PROFIT
57
Correlation Co-efficient Definition:
A measure of the strength of linear association between two variables.
Correlation will always between -1.0 and +1.0. If the correlation is positive,
we have a positive relationship. If it is negative, the relationship is negative.
Formula:
Correlation Co-efficient :
Correlation(r) =[ NΣXY - (ΣX)(ΣY) / Sqrt([NΣX2 - (ΣX)2][NΣY2 -
58
(ΣY)2])]
where
N = Number of values or elements
X = First Score
Y = Second Score
ΣXY = Sum of the product of first and Second Scores
ΣX = Sum of First Scores
ΣY = Sum of Second Scores
ΣX2 = Sum of square First Scores
ΣY2 = Sum of square Second Scores
1. Correlation coefficient between sales and net profit is 0.895
Year 2007 2008 2009 2010 2011Sales (x) 7358.88 7972.52 6168.99 7436.18 11407.15Net profit (y) 441.29 469.31 190.00 423.67 631.30
2. correlation coefficient between sales and dividend paid is 0.935
Year 2007 2008 2009 2010 2011Sales (x) 7358.88 7975.52 6168.99 7436.18 11407.15Dividend paid (y) 150 150 150 150 200
3. correlation coefficient between net profit and dividend paid is 0.987
Year 2007 2008 2009 2010 2011Net profit (x) 441.29 469.31 190.00 423.67 631.30Dividend paid (y) 150 150 150 150 200
59
4. correlation coefficient dividend per share and earning per share is 0.987
Year 2007 2008 2009 2010 2011DPS (x) 1.50 1.50 100 1.50 2.00EPS (y) 3.33 3.53 1.43 3.18 4.75
5. correlation coefficient working capital and net profit is 0.892
Year 2007 2008 2009 2010 2011Working capital (x) 407.70 661.08 1043.19 619.71 387.82Net profit (y) 441.29 469.31 190.00 423.67 631.30
FINANCIAL ANALYSIS
BALANCE SHEET
PROFIT AND LOSS
CASH FLOW
CAPITAL STRUCTURE
DIVIDEND
YEARLY RESULT
60
Balance Sheet of Ashok Leyland
------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of FundsTotal Share Capital 133.03 133.03 133.03 133.03 132.39
Equity Share Capital 133.03 133.03 133.03 133.03 132.39
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 2,523.65 2,190.10 1,976.00 1,993.57 1,739.23
Revaluation Reserves 1,306.28 1,333.17 1,364.86 22.38 22.96
Networth 3,962.96 3,656.30 3,473.89 2,148.98 1,894.58
Secured Loans 1,272.22 788.12 304.41 190.24 360.22
Unsecured Loans 1,385.97 1,492.33 1,657.57 697.26 280.18
Total Debt 2,658.19 2,280.45 1,961.98 887.50 640.40
Total Liabilities 6,621.15 5,936.75 5,435.87 3,036.48 2,534.98
61
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of FundsGross Block 6,691.89 6,018.63 4,953.27 2,942.44 2,620.20
Less: Accum. Depreciation 2,058.10 1,769.07 1,554.16 1,416.89 1,313.16
Net Block 4,633.79 4,249.56 3,399.11 1,525.55 1,307.04
Capital Work in Progress 387.82 619.71 1,043.19 661.08 407.70
Investments 1,230.00 326.15 263.56 609.90 221.09
Inventories 2,208.90 1,638.24 1,330.01 1,223.91 1,070.32
Sundry Debtors 1,185.21 1,022.06 957.97 375.84 522.88
Cash and Bank Balance 179.53 188.92 86.93 44.55 88.55
Total Current Assets 3,573.64 2,849.22 2,374.91 1,644.30 1,681.75
Loans and Advances 787.17 928.31 819.63 708.26 516.78
Fixed Deposits 0.00 330.01 1.15 406.82 346.39
Total CA, Loans & Advances 4,360.81 4,107.54 3,195.69 2,759.38 2,544.92
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 3,505.26 3,002.68 2,207.29 2,196.49 1,865.97
Provisions 490.33 368.69 268.08 345.23 104.23
Total CL & Provisions 3,995.59 3,371.37 2,475.37 2,541.72 1,970.20
Net Current Assets 365.22 736.17 720.32 217.66 574.72
Miscellaneous Expenses 4.31 5.17 9.69 22.29 24.42
Total Assets 6,621.14 5,936.76 5,435.87 3,036.48 2,534.97
Contingent Liabilities 881.77 445.03 754.37 1,783.97 1,129.49
Book Value (Rs) 19.97 17.46 15.85 15.99 14.14
Profit & Loss account of Ashok Leyland
------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
IncomeSales Turnover 12,393.36 8,071.74 6,826.96 9,178.82 8,513.93Excise Duty 986.21 635.56 657.97 1,206.30 1,155.05Net Sales 11,407.15 7,436.18 6,168.99 7,972.52 7,358.88Other Income 40.60 89.34 71.07 95.15 101.02Stock Adjustments 175.54 251.85 1.05 97.48 48.98Total Income 11,623.29 7,777.37 6,241.11 8,165.15 7,508.88
62
ExpenditureRaw Materials 8,406.17 5,534.24 4,554.36 5,952.86 5,570.18Power & Fuel Cost 65.19 44.47 38.42 45.28 45.44Employee Cost 974.60 671.61 566.26 616.17 480.70Other Manufacturing Expenses 86.04 45.51 50.30 57.48 41.70Selling and Admin Expenses 857.00 645.89 495.68 263.55 259.50Miscellaneous Expenses 0.19 0.16 0.13 330.84 324.31Preoperative Exp Capitalised -24.06 -15.25 -8.20 -0.67 -0.13Total Expenses 10,365.13 6,926.63 5,696.95 7,265.51 6,721.70
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 1,217.56 761.40 473.09 804.49 686.16PBDIT 1,258.16 850.74 544.16 899.64 787.18Interest 188.92 101.85 157.30 83.63 31.82PBDT 1,069.24 748.89 386.86 816.01 755.36Depreciation 267.43 204.11 178.41 177.36 150.57Other Written Off 0.00 0.00 0.00 0.49 0.30Profit Before Tax 801.81 544.78 208.45 638.16 604.49Extra-ordinary items 0.00 0.00 0.26 0.00 2.96PBT (Post Extra-ord Items) 801.81 544.78 208.71 638.16 607.45Tax 170.50 121.10 18.45 168.84 163.22Reported Net Profit 631.30 423.67 190.00 469.31 441.29Total Value Addition 1,958.96 1,392.39 1,142.59 1,312.66 1,151.50Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 266.07 199.55 133.03 199.77 198.58Corporate Dividend Tax 43.16 33.14 22.61 33.95 27.85Per share data (annualised)Shares in issue (lakhs) 13,303.38 13,303.38 13,303.38 13,303.38 13,238.70Earning Per Share (Rs) 4.75 3.18 1.43 3.53 3.33Equity Dividend (%) 200.00 150.00 100.00 150.00 150.00Book Value (Rs) 19.97 17.46 15.85 15.99 14.14
63
Cash Flow of Ashok Leyland
------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Net Profit Before Tax 801.80 544.77 208.45 638.15 604.51
Net Cash From Operating Activities 591.38 1090.17 -525.58 1065.69 499.95
Net Cash (used in)/fromInvesting Activities
-917.73 -783.17 -664.18 -809.68 -749.69
Net Cash (used in)/from Financing Activities
-13.64 123.31 459.18 364.52 -289.38
Net (decrease)/increase In Cash and Cash
-339.98 430.32 -730.58 620.53 -539.12
64
EquivalentsOpening Cash & Cash Equivalents 515.36 85.15 815.73 195.20 850.32
Closing Cash & Cash Equivalents 175.37 515.46 85.15 815.73 311.21
Capital Structure (Ashok Leyland)
Period Instrument Authorized Capital
Issued Capital
- P A I D U P -
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital
2010 2011 Equity Share 200 133.05 1330338317 1 133.03
2009 2010 Equity Share 200 133.05 1330338317 1 133.03
2008 2009 Equity Share 150 133.05 1330338317 1 133.03
2007 2008 Equity Share 150 133.05 1330338317 1 133.03
2006 2007 Equity Share 150 132.41 1323870317 1 132.39
2005 2006 Equity Share 150 122.18 1221586776 1 122.16
2004 2005 Equity Share 150 118.95 1189294200 1 118.93
2003 2004 Equity Share 150 118.93 118929420 10 118.93
2002 2003 Equity Share 150 118.93 118929420 10 118.93
2001 2002 Equity Share 150 118.93 118929420 10 118.93
2000 2001 Equity Share 150 118.93 118929420 10 118.93
65
1994 2000 Equity Share 150 118.93 118929420 10 118.93
1993 1994 Equity Share 100 100 69513696 10 69.51
1992 1993 Equity Share 100 69.51 69513696 10 69.51
1991 1992 Equity Share 100 31.5 31496309 10 31.5
1990 1991 Equity Share 50 31.5 31496309 10 31.5
1989 1990 Equity Share 50 31.34 31342976 10 31.34
1986 1989 Equity Share 25 21.39 21390000 10 21.39
1984 1986 Equity Share 25 18.13 18130000 10 18.13
1981 1984 Equity Share 25 16.5 16500000 10 16.5
1979 1981 Equity Share 25 16.5 33000000 5 16.5
1977 1978 Equity Share 25 14.02 28038651 5 14.02
1975 1976 Equity Share 15 9.35 18692434 5 9.35
1972 1973 Equity Share 10 7.79 15577029 5 7.79
1969 1972 Equity Share 10 7.79 15578549 5 7.79
1965 1966 Equity Share 10 8.62 12575068 5 6.29
1963 1964 Equity Share 10 5.53 11047464 5 5.52
1960 1963 Equity Share 10 4.97 9942998 5 4.97
1959 1960 Equity Share 3.25 3.25 4000000 5 2
1957 1958 Equity Share 3.25 2 3742000 5 1.87
1956 1957 Equity Share 2 1.5 1713360 5 0.86
1952 1955 Equity Share 2 0.75 1091360 5 0.55
Announcement Date
Effective Date
Dividend Type
Dividend (%) Remarks
19-05-11 29-06-11 Final 200.00 -
29-04-10 16-07-10 Final 150.00 -
15-05-09 14-07-09 Final 100.00 -
08-05-08 16-07-08 Final 150.00 -
14-03-07 28-03-07 Interim 150.00 -
03-05-06 12-07-06 Final 120.00 AGM
66
Yearly Results of Ashok Leyland
------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Sales Turnover 11,117.71 7,244.71 5,981.07 7,729.12 7,168.18
Other Income 15.33 70.45 49.62 74.00 70.80
Total Income 11,133.04 7,315.16 6,030.70 7,803.12 7,238.98
Total Expenses 9,900.15 6,481.87 5,511.64 6,925.13 6,465.49
Operating Profit 1,217.56 762.84 469.43 803.99 702.69
Profit On Sale Of Assets -- -- -- -- --
Profit On Sale Of Investments -- -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- -- --
VRS Adjustment -- -- -- -- --
Other Extraordinary Income/Expenses -- -- -- -- --
Total Extraordinary Income/Expenses -- -3.27 -13.49 -8.41 -13.08
Tax On Extraordinary Items -- -- -- -- --
Net Extra Ordinary Income/Expenses -- -- -- -- --
Gross Profit 1,232.89 833.29 519.05 877.99 773.49
Interest 163.66 81.13 118.71 49.74 5.33
PBDT 1,069.23 748.89 386.86 819.84 755.08
Depreciation 267.43 204.11 178.41 177.36 150.57
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Depreciation On Revaluation Of Assets -- -- -- -- --
PBT 801.80 544.78 208.45 642.48 604.51
Tax 170.50 121.10 18.45 173.17 163.22
Net Profit 631.30 423.68 190.00 469.31 441.29
Prior Years Income/Expenses -- -- -- -- --
Depreciation for Previous Years Written Back/ Provided
-- -- -- -- --
Dividend -- -- -- -- --
Dividend Tax -- -- -- -- --
Dividend (%) -- -- -- -- --
Earnings Per Share 4.75 3.18 1.43 3.53 3.33
Book Value -- -- -- -- --
Equity 133.03 133.03 133.03 133.03 132.39
Reserves 2,523.65 2,202.55 1,976.00 1,993.57 1,739.23
Face Value 1.00 1.00 1.00 1.00 1.00
FINDINGS AND SUGGESTION
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FINDINGS
In 2009 gross profit ratio was decreased 8.41 and it was lower
Comparing with last five year
Net profit 2009 ratio is decreased with 2.81% .Because of the
expenses is increased
Return on net worth also fluctuating in 2009 &2010 ratio was
decreased 1.42 to 3.18 because of the net profit
Fixed asset also effected in 2009 & 2010 ratio is lower than 2007 &
2008 because cost of sales is reduce
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Current ratio is decreased because company not maintained
current asset because of that ratio is decreased still it was 1.01 in
2011
Liquid ratio was decreasing from date of calculation in 2007 and
2008 ratio was 0.32 & 0.19. Because of current liabilities is
increasing
Inventory turn over ratio was slightly decrease in 2010
debtors turn over ratio was decreased in 2009 and 2010 slightly
increased up to 7.89 in 2011 ratio is increased 10.4 times this
highest comparing to last two year 2010 &2011.
Dividend pay out ratio in 2007 ratio is good 29.4 and 2008 ratio
was decreased 24.0. Again ratio was decreased 19.23 in 2009
Earning per share was decreased in 2009 because of net profit is
deceased.
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SUGGESTION
The current ratio and absolute ratio was maintained lower cash
than ideal ratio. So, the company cab take step to increase the
cash position to meet its expenses.
The company is allowed credit period for 50 days. The debt
collection period can be reduced with in 30days.
The company have to maintained there expenses and liabilities
To reduce the investor cost of the company must follow average
inventory system,
Otherwise, the company was making investment in current asset
and reducing cost of sales at the same time increasing sales
and profit was good in earlier days.
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MY EXPERIENCE
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MY EXPERIENCE
My first day started with small work like filling the form and enter the
value of VAT in ms excel. This work is done by me nearly five day and I
was successfully done. After then they given some bill books like sales
bill book and purchases bill book bank document etc, they briefly
explain about all things. I have to complete that work within three day
because they have to pay the tax to government so my supervisor going
putting pressure on me that you have to complete within time. Whole
day I enter all the sales entries in tally. Second day all most work was
completed I feel very happy that I completed my work within the time
limited. I told to my supervisor they check my work there was some
mistake in entries that time I feel little sad but my supervisor told me
the way to find mistake. Next day they given work for the income tax
department and pan card work laxmi madam help me to fill the form
and procedure regarding the pan card and each me the E-filing,
calculation of income. next step is to auditing and preparing the balance
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sheet gopal ji was old person among us and great experience in auditing
he teach me the auditing and that day old client have some problem in
regarding tax so gopal ji told me that read and find out the problem and
I am totally blank because I don’t have any idea I read all document I
find out that client was not preparing the proper bills. gopal ji told the
problem and find out solution and prepared report and paid previous
year tax and increased the bank balance.
When I gone for internship I feel nervous because I never done any
work like that and I have to completed project because without project I
can’t completed my graduation. When I started working there I feel
comfortable and it increased my willingness and confidence level. This
internship given me great experience it teaches me that if you doing the
work then only you get success.
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BIBLIOGRAPHY
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WWW.ashokleyland.comWWW.wikipedia.com
WWW.money controller.com
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