MIRA INFORM REPORT
|
Report
Date : |
18.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ASHOK LEYLAND LIMITED |
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Registered
Office : |
19 Rajaji
Salai, Chennai – 600 001, Tamilnadu, India |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
07.09.1948 |
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Com.
Reg. No.: |
18-105 |
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CIN
No.: [Company
Identification No.] |
L34101TN1956PLC00105 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
CHEA00171D / CHEA07627E |
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PAN
No.: [Permanent
Account No.] |
AAACA4651L |
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Legal
Form : |
Public Limited Liability Company. The company’s shares are
listed on the Stock Exchanges. |
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Line
of Business : |
Manufacturing
of Commercial Vehicles, Engines and Ferrous Castings. |
RATING & COMMENTS
|
MIRA’s
Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum
Credit Limit : |
USD
56000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Usually
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a well-established and reputed company having satisfactory track. The
company is a part of Hinduja Group. Available information indicates high
financial responsibility of the company. Directors are reported as
experienced, respectable and resourceful businessmen. Their trade relations
are reported as fair. Payments are reported as correct and as per
commitments. The company can be considered good for normal business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
19 Rajaji
Salai, Chennai – 600 001, Tamilnadu, India |
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Tel.
No.: |
91-44-25342141 |
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Fax
No.: |
91-44-25342493 |
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E-Mail
: |
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Website
: |
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Factory
1 : |
Ennore Post Box
No. 3 Ennore Chennai
600 057 Tamil
Nadu Hosur – Unit IIA Cab Panel
Press Shop SIPCOT
Industrial Complex Mornapalli
Village Hosur 635
109 Tamil
Nadu Hosur -
Unit I 175 Hosur
Indl. Complex Hosur 635
126 Tamil
Nadu Hyderabad
(***) Ductron
Castings B-15,
IDA-Uppal Hyderabad
500 039 Andhra
Pradesh Bhandara Plot No.l
MIDC Industrial Area Village
Gadegaon .Sakoli
Taluk Bhandara
441 904 Maharashtra Ambattur,
Chennai 3A/A&2
North Phase Sidco
Industrial Estate Ambattur,
Chennai 600 098 Tamil
Nadu Hosur -
Unit II 77
Electronic Complex Perandapalli
Village Hosur 635
109 Tamil
Nadu Alwar Plot
No.SPL 298 Matsya
Indl. Area Alwar 301
030 Rajasthan Technical
Centre Vellivayal
Chavadi Via
Manali New Town Chennai
600 103 |
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Sales
and Marketing Division : |
480 Anna
Salai, Nandanam, Chennai – 600 035, Tamilnadu Tel.
91-44-24341536 Fax.
91-44-24346220 E-Mail. edm@alm.sprintrpg.ems.vsnl.net |
DIRECTORS
|
Name : |
Mr. R J
Shahaney |
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Designation
: |
Chairman |
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|
Name : |
Mr. D G
Hinduja |
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Designation
: |
Vice
Chairman (Alternate : Y M Kale) |
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|
Name : |
Mr. D J
Balaji Rao |
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Designation
: |
Director |
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Name : |
Mr. F J
Colon Martinez (Alternate : G Sagone) |
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Designation
: |
Director |
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Name : |
Mr. A K
Das (Alternate : IN Chatterjee) |
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Designation
: |
Director |
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Name : |
Mr. P N Ghatalia |
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Designation
: |
Director |
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Name : |
Mr. H
Klingele (Alternate : A Spare) |
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Designation
: |
Director |
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Name : |
Mr. S R
Krishnaswamy (Representing LIC) |
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Designation
: |
Director |
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Name : |
Mr. E A
Kshirsagar |
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Designation
: |
Director |
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Name : |
Mr. F
Sahami |
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Designation
: |
Director |
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Name : |
Mr. R Seshasayee,
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Designation
: |
Managing
Director |
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Name : |
Mr. A Spare |
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Designation
: |
Director |
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Name : |
Mr. S V Young |
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Designation
: |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Vinod K Dasari |
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Designation
: |
Chief
Operating Officer |
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|
Name : |
Mr. J N
Amrolia |
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Designation
: |
Executive
Directors |
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Date
of Joining : |
16/05/1980 |
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Qualification
: |
BA(Hons.), M. A.(P.M & L.W) |
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Previous
Employment : |
Selection and Training Manager, Brooke Bond India
Ltd, Kolkata |
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E-mail
: |
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|
Name : |
Mr. S
Balasubramanian |
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Designation
: |
Executive
Directors |
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Name : |
Mr. K S
Kumar |
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Designation
: |
Executive
Directors |
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Name : |
Mr. R
Malhan |
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Designation
: |
Executive
Directors |
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Name : |
Mr. S
Nagarajan • |
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Designation
: |
Executive
Directors |
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Name : |
Mr. M
Natraj |
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Designation
: |
Executive
Directors |
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Name : |
Mr. K
Sridharan |
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Designation
: |
Executive Directors |
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Name : |
Mr. A Bhat |
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Designation
: |
Executive Director |
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Name : |
Mr. A R Chandrasekharan |
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Designation
: |
Executive Director |
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Name : |
Mr. B M Udayshankar |
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Designation
: |
Executive Director |
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Name : |
Mr. N
Sundararajan |
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Designation
: |
Executive
Director Company Secretary |
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E-mail
: |
MAJOR
SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Bodies
Corporate |
513618712 |
38.80% |
|
Mutual
Funds /UTI |
100598546 |
7.60% |
|
Financial
institutions Bank |
2428139 |
0.18% |
|
Central
Government / State Government |
1109360 |
0.08% |
|
Insurance Companies |
168119449 |
12.70% |
|
Foreign
Institutional Investors |
142604925 |
12.45% |
|
Indian /
Foreign Overseas |
33434545 |
2.53% |
|
Nominal
Share Capital upto Rs.1lakh |
137662559 |
10.40% |
|
Nominal
share Capital in excess of rs.1lakh |
19255784 |
1.45% |
|
Clearing
members |
947525 |
0.075% |
|
Trusts |
517863 |
0.04% |
|
Body Foreign bodies |
2516565 |
0.19% |
|
Any other OCB |
1000 |
0.00% |
|
Depository receipts have been issued |
178716570 |
13.50% |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing
of Commercial Vehicles, Engines and Ferrous Castings. |
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|
|
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Products
: |
Item Code No. (ITC Code) 87060042 Product Description Commercial
Vehicles Item Code No. (ITC Code) 84089010 Product Description Engines Item Code No. (ITC Code) 73259910 Product Description Ferrous
Castings |
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Imports
from : |
Germany, Italy and Japan |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Commercial
Vehicles |
Nos. |
77200 |
65085 |
|
Ferrous
Castings |
Tonnes |
-- |
7190 |
|
Engines @ |
Nos. |
-- |
-- |
GENERAL INFORMATION
|
No. of
Employees : |
13218 |
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Bankers
: |
·
Bank of America ·
Bank of Baroda ·
Canara Bank ·
Central Bank of India ·
Citibank N.A. ·
HDFC Bank Limited ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Punjab National Bank ·
Standard Chartered Bank ·
State Bank of India ·
The Hongkong and Shanghai Banking Corporation
Limited ·
ANZ Grindlays Bank Limited , 232 , NSC Bose Road ,
600001 Chennai (TN) ·
Central Bank of India , Chennai Stock Exchange Bldg,
11, 2nd
Line Beach , P.O. Box 190 , 600001 Chennai (TN) India ·
Canara
Bank, Ana Nagar (East) Branch, 600102 Chennai (TN) India. |
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Facilities : |
SECURED
LOANS Debentures Rs.
1390.000 millions Term
loans -
From
banks
Rs. 450.000 millions -
From
financial institutions
Rs. 6.910 millions UNSECURED LOANS Fixed deposits Rs.
0.000 millions Loans and advances - From banks Rs. 0.000 millions - Deferred Sales Tax Rs.
1623.630 millions • Foreign currency convertible
notes Rs.
3448.740 millions |
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Banking Relations : |
Satisfactory |
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Auditors
: |
M S
Krishnaswami and Rajan Deloitte
Haskins and Sells Chartered Accountants |
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Cost
Auditors : |
Geeyes and Company |
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Collaboration:
|
IVECO Fiat SpA, Italy |
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Holding
Company : |
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Subsidiaries
: |
v
Ashok
Leyland Information Technology Limited v Ashok Leyland Investment Services
Limited |
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Membership
: |
Confederation of Indian Industry |
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Associates
: |
v
Automotive
Coaches & Components Limited C1&D6 Sipcot Industrial Complex, Gummidipoondi – 601
201, Tamilnadu Tel No. 91-4119-222568 Fax No. 91-4119-222560 E-Mail: snb@smc.sprintrpg.net v
Lanka
Ashok Leyland, Sri Lanka 24, Duplication Road, Colombo – 4, Sri Lanka Tel No. 0094-1-502532 Fax No. 0094-1-502286 E-Mail: cowsik@alm.sprintpg.net.in v
PL
Haulwel Trailers 480, Anna Salai, Nandanam, Chennai – 600 035, Tamilnadu Tel No. 91-44-24330824 Fax No. 91-44-24346840 E-Mail: al@ashokleyland.com v
Ashok
Leyland Finance Limited 86, Chamiers Road, Chennai, Tamilnadu Tel No. 91-44-24351934 Fax No. 91-44-24343646 E-Mail: agm.bp@alf.sprintrpg.ems.vsnl.net.in v
Ennore
Foundries Limited Ennore, Chennai – 600 057, Tamilnadu Tel No. 91-44-25733103 Fax No. 91-44-25733390 E-Mail: al@ashokleyland.com v
Ashok
Leyland Project Services Limited 477-480, Anna Salai, Nandanam, Chennai – 600 035,
Tamilnadu Tel No. 91-44-24331120 Fax No. 91-44-24338344 E-Mail: afc@alc2.global.net.in v
Ashley
Holdings Limited v
Ashley
Investments Limited |
CAPITAL STRUCTURE
Authorised
Capital:
|
No. of
Shares |
Type |
Value |
Amount |
|
1500,000,000 |
Equity
Shares |
Rs.1/- each |
Rs.1500.000 millions |
Issued,
Subscribed & Paid-up Capital:
|
No. of
Shares |
Type |
Value |
Amount |
|
|
Issued Capital |
|
|
|
165,025,815 341,742,940 323,157,240 359,572,880 32,292,576 |
(2005:
165,025,815) Equity shares (2005: Rs.1/-) (2005:
341,742,940) Equity shares (2005:
Rs.1/-) issued by way of conversion of debentures (2005:
323,157,240) Equity shares (2005:
Rs.1/-) issued through Global depository receipts (2005:
359,572,880) Equity shares (2005: Rs.1/-) (2005:
Nil) Equity shares (2005: Rs.1/-) issued by way of conversion of Foreign
currency convertible notes (FCCN) |
Rs.1/- each Rs.1/- each Rs.1/- each Rs.1/- each Rs.1/- each |
Rs. 165.030 millions Rs. 341.740 millions Rs. 323.160 millions Rs. 359.570 millions Rs. 32.290 millions |
|
|
Total |
|
Rs. 1221.790
millions |
|
|
Subscribed & Paid-up Capital |
|
|
|
1,221,586,776 |
(2005 :
1,189,294,200) Equity shares (2005: Re.l) fully paid up |
Rs.1/- each |
Rs.1221.590 millions |
|
Add |
Forfeited
shares (Rs.3,800/-) |
|
|
|
|
Total |
|
Rs. 1221.590
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
1221.590 |
1189.290 |
1189.290 |
|
|
3]
Reserves & Surplus |
12902.940 |
10489.360 |
9328.680 |
|
NETWORTH
|
14124.530 |
11678.650 |
10517.970 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
1846.910 |
2634.960 |
3103.560 |
|
|
2]
Unsecured Loans |
5072.370 |
6169.100 |
1885.520 |
|
TOTAL
BORROWING
|
6919.280 |
8804.06 |
4989.080 |
|
|
DEFERRED
TAX LIABILITIES |
1796.890 |
1708.480 |
1802.860
|
|
|
|
|
|
|
|
TOTAL
|
22840.700 |
22191.190 |
17309.910 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
9432.710 |
8938.460 |
8748.290 |
|
Capital work-in-progress
|
1414.170 |
851.550 |
462.710 |
|
|
|
|
|
|
|
INVESTMENT
|
3681.780 |
2291.900 |
1466.020 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
9025.610
|
5680.810
|
5069.410 |
|
|
Sundry Debtors
|
4243.370
|
4587.660
|
4056.190 |
|
|
Cash & Bank Balances
|
6028.760
|
7966.820
|
3249.740 |
|
|
Loans & Advances
|
3026.390
|
3337.340
|
2261.330 |
Total Current Assets
|
22324.130
|
21572.630
|
14636.670 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
11468.950
|
9611.870
|
6856.710 |
|
|
Provisions
|
2616.210
|
2044.80
|
1470.310 |
Total Current Liabilities
|
14085.160
|
11656.670
|
8327.020 |
|
Net
Current Assets
|
8238.970
|
9915.960
|
6309.650 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
73.070 |
193.320 |
323.240 |
|
|
|
|
|
|
|
TOTAL
|
22840.700 |
22191.190 |
17309.910 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
52806.310 |
42361.330 |
34106.390 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
4523.000 |
3550.100 |
2864.600 |
Provision for Taxation
|
1249.800 |
836.000 |
928.800 |
Profit/(Loss) After Tax
|
3273.200 |
2714.100 |
1935.800 |
|
|
|
|
|
Export Value
|
4513.050 |
5228.750 |
3028.560 |
|
|
|
|
|
Import Value
|
1457.420 |
1062.740 |
841.300 |
|
|
|
|
|
Total Expenditure
|
48500.460 |
38715.400 |
31146.600 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st Qtr |
2nd Qtr |
3rd Qtr |
|
Sales Turnover |
14238.700 |
16757.200 |
1,7775.900 |
|
Other Income |
138.800 |
336.600 |
63.500 |
|
Total Income |
14377.500 |
17093.800 |
1,7839.400 |
|
Total Expenditure |
13090.600 |
15437.600 |
1,5966.400 |
|
Operating Profit |
1286.900 |
1656.200 |
1873.000 |
|
Interest |
5.100 |
3.700 |
25.600 |
|
Gross Profit |
1281.800 |
1652.500 |
1847.400 |
|
Depreciation |
327.700 |
264.500 |
332.300 |
|
Tax |
183.200 |
289.100 |
434.900 |
|
Reported PAT |
691.800 |
953.600 |
1052.600 |
200606 Quarter 1 --------------- Notes: Expenditure Includes
(Increase)/Decrease in finished / trading goods Rs (821.36) million Consumption
of Raw Material & movement in work-in-progress Rs 11266.69 million Staff
Cost Rs 1291.24 million Other expenditure Rs 1315.59 million Tax Includes
Provision for Current Taxation Rs 175.70 million Deferred Taxation Rs 79.10
million Fringe Benefit Tax Rs 7.50 million Extraordinary Items Indicates
Voluntary Retirement Scheme compensation amortised EPS is Basic Status of
Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at
the beginning of the quarter 02 Complaints Received during the quarter 227
Complaints disposed off during the quarter 221 Complaints unresolved at the end
of the quarter 08* These complaints were resolved by July 05, 2006 1. Out of
77,300 Foreign currency convertible notes (FCCN) of US $ 1,000 each outstanding
as at March 31, 2006, holders of 62,080 FCCN aggregating to US$ 62.08 million
exercised their option to convert during the quarter and were allotted
88,313,803 equity shares of face value of Re 1 at the prevailing conversion
price of Rs 31. Cumulatively, holders of FCCN aggregating to US$ 84.78 million
have exercised their option to convert and were accordingly allotted equity
shares, leaving a balance of FCCN amounting to US$ 15.22 million. There is no
dilution in earnings per share as at June 30, 2006. 2. LRLIH Ltd has again
become the holding Company effective June 21, 2006 consequent to exercising the
option to convert their FCCN holding into equity shares. 3. Other expenditure
includes exchange difference arising out of restatement of foreign currency
assets and liabilities. For the quarter ended June 30, 2006, this was a net
loss of Rs 26.19 million (against a net gain of Rs 32.48 million for quarter
ended June 30 2005). For the year ended March 31, 2006 this was a net loss of
Rs 35.33 million. 4. The Company is principally engaged in a single business
segment viz., Commercial vehicles and related components and operates in one
geographical segment as per Accounting Standard 17 on Segment Reporting' issued
by the Institute of Chartered Accountants of India. 5. The Company has signed a
framework agreement to acquire the truck business unit of AVIA a.s. in Prague,
Czech Republic. The acquisition is subject to completion of certain conditions
as well as corporate and statutory approvals by both parties. These are
expected to be completed by end of August 2006. 6. Figures for the previous
periods are regrouped wherever necessary. 7. The above financial results were
reviewed by the Audit committee and then approved by the Board of Directors at
its meeting held on July 30, 2006.
200609 Quarter 2 --------------- Notes Expenditure Includes
(Increase)/Decrease in finished / trading goods Rs (554.36) million Consumption
of Raw Material Rs 13215.60 million (including work in progress) Staff Cost Rs
1203.48 million Other expenditure Rs 1542.05 million Tax Includes Provision for
Current Taxation Rs 282.40 million Deferred Taxation Rs 45.30 million Fringe
Benefit Tax Rs 6.68 million Extraordinary Items Indicates Voluntary Retirement
Scheme compensation amortised EPS is Basic Status of Investor Complaints for
the quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter 08 Complaints Received during the quarter 471 Complaints disposed off
during the quarter 463 Complaints unresolved at the end of the quarter 16 1.
Out of 77,300 Foreign currency convertible notes (FCCN) of US $ 1,000 each
outstanding as at March 31, 2006, holders of 62,080 FCCN aggregating to US$
62.08 million exercised their option to convert during the half year period and
were allotted 88,313,803 equity shares of face value of Re 1 at the prevailing
conversion price of Rs 31. Cumulative upto September 30, 2006, holders of FCCN
aggregating to US$ 84.78 million have exercised their option to convert and
were accordingly allotted equity shares, leaving a balance of FCCN amounting to
US$ 15.22 million. 2. LRLIH Ltd has become the holding Company effective June
21, 2006 consequent to exercising the option to convert their FCCN holding into
equity shares. 3. Other expenditure includes exchange difference arising out of
restatement of foreign currency assets and liabilities. For the quarter ended
September 30, 2006. this was a net-gain of Rs 30.48 million (against a net loss
of Rs 34.16 million for quarter ended September 30, 2005). For the six months
ended September 30, 2006 this was a net gain of Rs 4.29 million (against a net
loss of Rs 1.68 million for six months ended September 30, 2005). For the year
ended March 31, 2006 this was a net loss of Rs 35.33 million. 4. In October
2006 the company's wholly owned foreign subsidiary Avia Ashok Leyland Motors
s.r.o. completed the acquisition of truck business unit of Avia a.s. in Czech
Republic in pursuance of the framework agreement signed earlier. The subsidiary
has begun its business operations post acquisition. 5. The company has reckoned
employee benefits during the period in accordance with the revised Accounting
Standard '15 The said liability for prior years will be adjusted against
opening revenue reserves. 6. The company is principally engaged in a single
business segment viz., Commercial vehicles and related components and operates
in one geographical segment as per Accounting standard 17 on 'Segment
Reporting' issued by the Institute of Chartered Accountants of India. 7.
Figures for the previous periods are regrouped wherever necessary. 8. The above
financial results were reviewed by the Audit committee and then approved by the
Board of Directors at its meeting held on October 30, 2006. 9. The above financial
results were subjected to limited review by the statutory auditors.
200612 Quarter 3 --------------- Notes Expenditure Includes
(Increase)/Decrease in finished / trading goods Rs (951.64) million Consumption
of Raw Material Rs 14177.19 million (including work in progress) Staff Cost Rs
1149.04 million Other expenditure Rs 1560.78 million Tax Includes Provision for
Current Taxation Rs 422.40 million Deferred Taxation Rs 27.60 million Fringe
Benefit Tax Rs 12.50 million Extraordinary Items indicates Voluntary Retirement
Scheme compensation amortised EPS is Basic Status of Investor Complaints for
the quarter ended December 31, 2006 Complaints Pending at the beginning of the
quarter 16 Complaints Received during the quarter 323 Complaints disposed off during
the quarter 339 Complaints unresolved at the end of the quarter Nil 1. Out of
77,300 Foreign currency convertible notes (FCCN) of US $ 1,000 each outstanding
as at March 31, 2006, holders of 71,500 FCCN aggregating to US$ 71.50 million
exercised their option to convert during the nine months period and were
allotted 101,714,509 equity shares of face value of Re 1 at the prevailing
conversion price of Rs 31. Cumulative upto December 31, 2006, holders of FCCN
aggregating to US$ 94.20 million have exercised their option to convert and
were accordingly allotted 134,007,085 equity shares, leaving a balance of FCCN
amounting to US$ 5.80 million. 2. Other expenditure includes exchange
difference arising out of restatement of foreign currency assets and liabilities.
For the quarter ended December 31, 2006. this was a net-gain of Rs 28.11
million (against a net loss of Rs 79.73 million for quarter ended December 31,
2005). For the nine months ended December 31, 2006 this was a net loss of Rs
23.82 million (against a net loss of Rs 81.39 million for nine months ended
December 31, 2005). For the year ended March 31, 2006 this was a net loss of Rs
35.33 million. 3. During the period, the Company has established a subsidiary
company (Ashok Leyland(UAE), LLC) in Ras Al Khaimah, UAE for putting up a bus
body assembly plant to cater to the Middle East and neighbouring markets. 4.
The Company has reckoned employee benefits for the nine months ended December
31, 2006 in accordance with the revised Accounting Standard 15 - Employee
Benefits in terms of transitional provisions of the said Standard, Gross
liability of Rs 774.22 million (Rs 513.62 million net of tax) pertaining to
prior years has been adjusted from the opening General Reserve. 5. The Company
is principally engaged in a single business segment viz, Commercial vehicles
and related components and operates in one geographical segment as per
Accounting Standard 17 on 'Segment Reporting'. 6. Figures for the previous
periods are regrouped wherever necessary. 7. The above financial results were
reviewed by the Audit committee and then approved by the Board of Directors at
its meeting held on January 31, 2007. 8. The statutory auditors have conducted
a limited review of the above results.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.62 |
0.64 |
0.62 |
|
Long Term Debt-Equity Ratio |
0.62 |
0.64 |
0.62 |
|
Current Ratio |
1.50 |
1.54 |
1.58 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.02 |
2.55 |
2.19 |
|
Inventory |
8.39 |
9.09 |
8.68 |
|
Debtors |
13.97 |
11.31 |
8.62 |
|
Interest Cover Ratio |
12.79 |
12.68 |
5.82 |
|
Operating Profit Margin (%) |
9.99 |
10.12 |
11.11 |
|
Profit Before Interest And Tax Margin (%) |
7.95 |
7.89 |
8.69 |
|
Cash Profit Margin (%) |
7.35 |
7.79 |
7.29 |
|
Adjusted Net Profit Margin (%) |
5.30 |
5.55 |
4.86 |
|
Return On Capital Employed (%) |
24.07 |
22.04 |
22.00 |
|
Return On Net Worth (%) |
25.86 |
25.02 |
19.75 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 48.00 |
|
Low |
Rs. 46.15 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was
incorporated on 7th September 1948 at Chennai in Tamilnadu having
Company Registration Number 105.
The company
was incorporated under the name & style of ASHOK MOTORS LIMITED and started
with manufacture of diesel engines and vehicles chases. The Leyland Group of
UK, acquired a controlling interest in 1955. In that year, the company started
production of vehicles using Leyland designs. Leyland’s stake was held through
LRLIH Limited. LRLIH was purchased jointly by the Hinduja Group and IVECO with
70:30 contributions.
The
company, the flagship company of Hinduja Group was a leading manufacturer of
commercial vehicles in India. All incorporated in 1948 as Ashok Motors started
business as assembler of Austin car parts in India.
In 1955,
the company entered into an agreement with Leyland motors, UK, to manufacture
Leyland vehicles and changed its’ name to the company. The Hinduja Group and
IVECO, Italy (a subsidiary of Fiat) acquired Leyland, UK in 1987 thus making
Land Rover Leyland International, UK as the holding company of the company. The
holding company holds 50.9% of stake in company’s equity.
The company
is the second largest manufacturer of medium/heavy-duty vehicles in India
today. The company is also into manufacture of industrial marine engines. The
company’s manufacturing facilities are located at Ennore (Chennai, Tamilnadu),
Hosur (Tamilnadu), Bhandara (Maharashtra) and Alwar (Rajasthan).
The company
has given a lot of thrust to new range of intermediates commercial vehicles,
which fall between the light and heavy range of commercial vehicles, with the
technical assistance from IVECO. Commercial production of the 709 and 909
models had commenced and the range was expected to be expanded in future. Under
the first phase of expansion cum modernisation, a substantial sum had been
invested. The company proposes to further expand and modernise capacities over
the next four years, for which it raised Rs. 4360.000 millions through a GDR
issue in 1995.
The company
obtained the ISO 9002 certification from the India Register of Quality Systems
(IRQS) for the Hosur and Ennore units. It also obtained ISO 9001-94
certification covering design/development, manufacturing and service functions.
The company
supplies both to State Transport undertakings (STUs) and Defence. The company
and ministry of Defence’s vehicle factory in Jabalpur had signed manufacturing
agreements, which facilitate manufacture of a new bree of commercial vehicles
for defece applications. The company had supplied specially developed light
recovery vehicles (LRVs) to the Indian Army. The company had also pioneered
Buses running on CNGT fuel in India and this type of buses are running
successfully in Mumbai and Delhi.
The company
and Sundaram Industries had together joined hands with Irizar of Spain, an
internationally acclaimed luxury bus manufacturer, to float a joint venture
company, Irizar TVS, to manufacture bus bodies in India. The assets of TVS
Coach (the erstwhile JV of Sundaram Industries and company), which owns two bus
body building factories in Tamilnadu will be transferred to the new JV Company
Irizar TVS in which all the three partners will have equal shareholdings.
The company
has obtained contemporary rear axles technology support from Dana Corporation,
USA and Arvin Meritor, USA. The gear box proposed to be manufactured at its’
Bhandara plant was a transmission designed for medium and heavy duty commercial
vehicle application to permit both the higher torque output demanded of drive
lines envolving in India as well as higher realibility and durability.
In 2002-03,
the company has successfully developed indigenously, the upgraded versions of 5
and 6 speed gear boxes and this will be offered for select vehicle
applications.
The new
technology had been obtained from ZF Friedchshafen, Germany, for a new 6 speed
synchromesh gear box and this will be introduced during 2003-04 in the
company’s products.
The company
had set up its’ Centralised R & D facility near Chennai to cater to all
chasis engineering activities.
During the
year 2002-03, the company has successfully upgraded IT infrastucture at its’
manufacturing units and marketing offices.
The company
has promoted a new company called Ashley Transport Services Limited (ATSL)
during November 2004 to provide information exchange and integrated logistic
service to handle the business of freight contractors, etc. It has subscribed
Rs. 70.000 millions (0.700 million shares of Rs. 100/- each) to the equity
capital of ATSL and shares were allotted during November 2004 which represent
70% of the paid up capital of ATSL, thus making it a subsidiary of company with
effect from 16.11.2004.
In 1948
Subject was born. Subject was
assembling Austin Cars at the first plant, at Ennore near Chennai. In 1950 it started assembly of Leyland
commercial vehicles and soon local manufacturing under license from British
Leyland. With British Leyland
participation in the equity capital, 1954, the company was rechrishtened Ashok
Leyland.
Since
then subject has been a major presence in India's commercial vehicle industry.
These years have been punctuated by a number of technological innovations,
which went on to become industry standards. This tradition of technological
leadership was achieved through tie-ups with international technology leaders
and through vigorous in-house R&D.
The company’s vehicles have built a reputation for reliability
and raggedness. The 375,000 vehicles
put on the roads have shared the additional pressure placed on road
transportation in independent India.
The share of goods movement by road, rose from 12% in 1950 to 60% in
1995. In passenger transportation, the
jump is equally dramatic: from 25% to 80%. At 60 million passengers a day, the
subject’s buses carry more people than the entire Indian rail network. In the
populous Indian metros, four out of the five State Transport Undertaking (STU)
buses come from the company. Some of
them like double decker and vestibuled buses are unique models from subject,
tailor-made for high density routes.
In 1987, the overseas holding by LRLIH (Land Rover Leyland
International Holdings Limited) 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.
Subject is the second largest manufacturer of medium/heavy
duty vehicles and also manufactures industrial marine engines.
The company started by assembling Austin car parts in India.
In 1955, the company entered into an agreement with Leyland Motors, UK, to
manufacture Leyland vehicles and changed its name to Ashok Leyland, In 1987,
the Hinduja Group and IVECO, Italy (a subsidiary of Fiat), purchased shares of
Leylan, UK. Land Rover Leyland International, UK is the holding company of ALL
with a 50.93% stake.
Today, the company is the second-largest manufacturer of
medium/heavy duty vehicles and also manufactures industrial marine engines. The
company has factories at Alwar, Rajasthan, Chennai, Hosur, and Ambattur all in
Tamilnadu, Bhandara, Maharashtra, Hyderabad and Andhra Pradesh.
Business Operations
The year 2005-06 continued to
be a good year when the Company achieved several new records and milestones
riding on the overall economy and buoyancy in the market. The highlights are
discussed in detail in the Management Discussion and Analysis Report attached
as Annexure-D to this Report.
Corporate Governance
The Company has consistently adopted high standards of Corporate Governance
even before the SEBI Guidelines on this subject. were mandated in the year
2000.
The revised and more stringent Guidelines stipulated by SEBI through the Listing
Agreements with Stock Exchanges became effective from January 1, 2006. The Code
of Conduct for the Board and the Senior Management was adopted by the Company
in March 2005. Board has implemented the necessary actions, and Company is
fully compliant with the revised Guidelines from April 1, 2005. All the
Directors (and also the members of the Senior Management - of the rank of
General Managers and above) have confirmed in writing about their compliance
and adherence with the Code of Conduct. The details are furnished in Annexure-B
to this Report.
Downstream Business Support
Activities
Ashley Transport Services Limited
The activity in this Company had to be curtailed during the year in order to
revamp and strengthen some of the controls and operating procedures required
for this pioneering business venture.
Gulf Ashley Motor Limited
This Company was formed primarily to strengthen the dealer network and customer
servicing in the Eastern parts of the country. The initiative has started
yielding good results as reflected by the increased sales and market share for
this Company in these regions.
FOREIGN CURRENCY CONVERTIBLE NOTES
(FCCNS)
The Foreign Currency Convertible Notes (FCCNs) for USD 100 mn. issued in April
2004 are convertible into shares of the Company (Fixed Exchange Rate USD 1 =
Rs.44.10); Conversion Price (reset in 2005) of Rs.31/- per share of face value
Re.1/- each. The market price of the Company's equity shares in the Indian
Stock Market has improved considerably in the Last few months. Starting from
February 2006, the Company has received 9 requests upto March 31, 2006 for
conversion of 22700 FCCNs into 32292576 equity shares. From April 1, 2006 upto
April 29, 2006, the Company has received 3 more requests for conversion of 8050
FCCNs into 11451773 equity shares. These requests have been approved and
conversions have taken place. All the procedures consequent to the conversion
are being completed on time and these shares, which rank pari passu with the
earlier shares in all respects, are tradable in the Indian Stock Exchanges. The
details of the enhanced share capital as on March 31, 2006 and the
corresponding revised shareholding pattern are given, as part of the Corporate
Governance Report (Annexure-B) to this Report.
Subdivision Of Shares
During the year 2004-05, Company's shares were subdivided (from a face value of
Rs.10/- each to a face value of Re.1/- each) w.e.f. July 7, 2004. Such action
has resulted in substantially increasing the shareholders base of the Company;
the number of shareholders as on March 31, 2006 has increased to 137244 (from
about 72000 before subdivision).
The company imports raw materials
and components
The company’s fixed assets of important value include
Freehold & Leasehold Land, Buildings, Plant & Machinery, Furniture,
Computer, Fittings & Equipments and Vehicles.
As Per Web
Profile
Eight out
of ten metro state transport buses in India are from Ashok Leyland. At 70 million passengers a day, Ashok
Leyland buses carry more people than the entire Indian rail network.
From 18 seater to 82 seater double decker buses, from 7.5 tonne to 49 tonne in
haulage vehicles, from numerous special application vehicles to diesel engines
for industrial, marine and genset applications, Ashok Leyland offers a wide
range of products.
For over
five decades, Ashok Leyland has been the technology leader in India's
commercial vehicle industry, moulding the country's commercial vehicle profile
by introducing technologies and product ideas that have gone on to become
industry norms.
"We
consider our employees as our most valuable asset and are committed to provide
full encouragement and support to them, to enhance their potential and
contribution to the Company's business" - From Ashok Leyland's value
statement..
They are close to 12,000 people, moulding and managing technology. And reaching
the benefits of technology to our customers. Offering transport solutions and
after-market support wherever our products operate - which is almost
everywhere.
They are
spread throughout India, and even outside India. Tasks vary, so do our skills.
But they are bound together by a healthy chain of interdependence, to
deliver value to the customer.
They are
committed to maintaining our technological leadership. They manage this through
continuous learning. So that
they can master ever-evolving technologies. And meet changing customer needs.
Understandably,
a career with Ashok Leyland offers a lifetime of learning.
Structured training programmes address the needs of workmen, apprentices,
graduate engineering trainees, executives in the managerial levels for
knowledge and skills upgradation, computerization, attitudinal changes,
self-development, supervisory and managerial skills orientation to new
technologies as also requirements specific to various functional areas. This
breadth is reflected in the comprehensive annual training calendar.
Annually, five executive days are invested in training.
Besides nominations to external training programmes in IIMs, ASCI Hyderabad and
other Indian and international institutions of repute, Ashok Leyland also has
arrangements for ongoing distant
learning and residential programmes with management institutes. An
instance is the modular programme for marketing executives developed in
collaboration with TA Pai Management Institute, Manipal.
Ashok
Leyland has a tie-up with BITS, Pilani for a custom-designed, off-campus 2-year
MS course in Engineering Management. Aimed at making Managers out of Engineers,
assignments and projects are central to the learning process thus bridging the
classroom with the engineers' workplace. From 2000, a BS programme in
Industrial Engineering and Technology, is offered for diploma holders, again in
collaboration with BITS. Apart from updating their knowledge base, the
programme empowers engineers to acquire multiple skills.
Ashok Leyland is one of the moving forces behind an M.Tech course in Automobile
Engine Technology jointly managed by the automobile industry (Indian Society
for Automotive Technology, made up of auto manufacturers), IIT, Madras and
Institut Francais du Petrole, the French institute for IC engines.
Employee Motivation
Ashok
Leyland targets 100% of its employees to be involved in its continuous
improvement activities. Breaking Thresholds by Involving Total Employees
(BITES) is an integrated approach that brings under one umbrella all Total
Employees Initiatives. These initiatives or platforms are available for
employees to team up or to individually champion any improvement project.
The platforms comprise Cross Functional Teams, Quality Circles, Small Group Activities,
Suggestions Schemes, Individual Improvement Projects, Company / Family
interfaces and many more.
Reward systems abound and include "RISE" (Reward for Individual
Search for Excellence), "Improve" (Annual company-wide contest) for
rewarding the best team projects, BITES (Shield for the best unit in total
employee involvement), 100% club (apex company reward for exemplary individual
or team performance), Green Shield (best unit for environmental sustenance),
etc.
Integration and participation is also an outcome of investment in IT that
offers space on the intranet / Internet to interact for collaborative learning,
sharing and communicating.
The open culture in Ashok Leyland has arrived and this is well timed when there
is large-scale entry of young men and women into the 2000 plus strong executive
workforce.
In the Media
Ties-up Technology for Hydrogen -
Natural Gas mix engines
"Hythane" engines will meet BS4 emission norms and beyond
Date : December 18, 2006 Published
from : Corporate Office
Ashok
Leyland, the Hinduja Group flagship in India, has signed an agreement with Brehon
Energy PLC, Australia, for technology for the use of ecologically superior
Hythane gas in CNG engines. Brehon Energy PLC has acquired and developed
patents, technology and know-how for the production, storage, dispensing and
use of Hythane.
This agreement
with Brehon would enable Ashok Leyland to offer its 6-cylinder ‘H’ series
engines to operate on Hythane. Use of Hythane, which is a prepared blend of
hydrogen and natural gas, dramatically reduces gaseous emissions compared to
CNG, which is by itself a ‘clean’ fuel.
Currently,
Ashok Leyland produces BS3 compliant diesel and CNG engines. The re-engineered
engines using Hythane will meet the more stringent, future emission norms
starting with BS4. The use of CNG in vehicular applications is expected to grow
in line with the Indian Government’s plans to make available CNG in more parts
of the country. The Government is also actively encouraging R&D on Hydrogen
– natural gas mix as an alternate fuel for automobile engines.
Since
rolling out India’s first CNG-powered bus in 1997 on Mumbai’s roads, Ashok
Leyland spearheaded the large-scale induction of this eco-friendly technology
in the bus fleet of Delhi. In 2002, the Company developed India’s first Hybrid
Electric bus.
At 03,101 vehicles, Ashok Leyland
annual sales up 35 %
Date:
04.043.2007 Published from: Corporate Office
Ashok
Leyland, the Hinduja Group flagship in India has closed the year ended 31st
March 2007 with an all-time high sale of 83,101 vehicles. This represents a 35
% growth over its 2005-06 sales 61,655 vehicles. Sales in the domestic
M&HCV segment touched 76,741 numbers, reflecting a 37% growth. Exports
volumes are also up 23 % at 6,025 vehicles
These
annual numbers were helped by the overall buoyancy of the economy and industry and
the robust growth in the MAV (Multi –Axle Vehicles) and Tractor – Trailer
segments which have long been Ashok Leyland’s strong holds.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited transactions
or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders, director,
officer or employee of the company is a government official or a family member
or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.37 |
|
UK Pound |
1 |
Rs.83.11 |
|
Euro |
1 |
Rs.56.50 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |