MIRA
INFORM REPORT
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Report Date : |
11.05.2007 |
IDENTIFICATION DETAILS
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Name : |
ASHOK LEYLAND
LIMITED |
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Registered Office : |
19 Rajaji Salai,
Chennai – 600 001, Tamilnadu |
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Country : |
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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
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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
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Registered
Office : |
19 Rajaji Salai,
Chennai – 600 001, |
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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 : |
Located at : Ennore Post Box No. 3,
Ennore, Chennai 600 057, Tamil Nadu Hosur – Unit IIA Cab Panel Press
Shop, SIPCOT Industrial Complex, Hosur - Unit I 175 Hosur Indl.
Complex, Hosur 635 126, Tamil Nadu Ductron Castings,
B-15, IDA-Uppal, Bhandara Plot No.l MIDC
Industrial Area, Village Gadegaon, .Sakoli Taluk, Bhandara 441 904, Ambattur, Chennai 3A/A&2 North Phase,
Sidco Industrial Estate, Ambattur, Chennai 600 098 Tamil Nadu Hosur - Unit II 77 Electronic
Complex, 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 |
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Tel. No.: |
91-44-24341536 |
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Fax No.: |
91-44-24346220 |
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E-Mail : |
DIRECTORS
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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 |
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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
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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 / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Bodies Corporate |
513618712 |
38.80% |
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Mutual Funds /UTI |
100598546 |
7.60% |
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Financial
institutions Bank |
2428139 |
0.18% |
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Central
Government / State Government |
1109360 |
0.08% |
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Insurance Companies |
168119449 |
12.70% |
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Foreign
Institutional Investors |
142604925 |
12.45% |
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Indian / Foreign
Overseas |
33434545 |
2.53% |
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Nominal Share
Capital upto Rs.1lakh |
137662559 |
10.40% |
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Nominal share Capital
in excess of rs.1lakh |
19255784 |
1.45% |
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Clearing members |
947525 |
0.075% |
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Trusts |
517863 |
0.04% |
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Body Foreign bodies |
2516565 |
0.19% |
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Any other OCB |
1000 |
0.00% |
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Depository receipts have been issued |
178716570 |
13.50% |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of
Commercial Vehicles, Engines and Ferrous Castings. |
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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 : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Commercial
Vehicles |
Nos. |
77200 |
65085 |
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Ferrous Castings |
Tonnes |
-- |
7190 |
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Engines @ |
Nos. |
-- |
-- |
GENERAL INFORMATION
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No. of Employees : |
13218 |
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Bankers : |
·
Bank of ·
Bank of ·
Canara Bank ·
Central Bank of ·
Citibank N.A. ·
HDFC Bank Limited ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Punjab National Bank ·
Standard Chartered Bank ·
State Bank of ·
The Hongkong and Shanghai Banking Corporation
Limited ·
ANZ Grindlays Bank Limited , 232 , ·
Central Bank of 11, 2nd Line Beach , ·
Canara
Bank, Ana Nagar (East) Branch, 600102 Chennai (TN) |
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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 : |
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Name : |
M Deloitte Haskins
and Sells Chartered Accountants |
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Cost Auditors
: |
Geeyes and
Company |
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Collaboration:
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IVECO Fiat |
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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
24, 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, 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 Capital :
|
No. of Shares |
Type |
Value |
Amount |
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165,025,815 341,742,940 323,157,240 359,572,880 32,292,576 |
Equity shares Equity shares issued by way of
conversion of debentures Equity shares issued through
Global depository receipts Equity shares Equity shares 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 |
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Total |
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Rs. 1221.790 millions |
Subscribed
& Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
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1,221,586,776 |
Equity shares
fully paid up |
Rs.1/- each |
Rs.1221.587 millions |
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Add |
Forfeited shares
(Rs.3,800/-) |
|
Rs. 0.003 |
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Total |
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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 |
|
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SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
1221.590 |
1189.290 |
1189.290 |
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3] Reserves &
Surplus |
12902.940 |
10489.360 |
9328.680 |
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NETWORTH
|
14124.530 |
11678.650 |
10517.970 |
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LOAN FUNDS |
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|
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1] Secured Loans |
1846.910 |
2634.960 |
3103.560 |
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2] Unsecured
Loans |
5072.370 |
6169.100 |
1885.520 |
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TOTAL BORROWING
|
6919.280 |
8804.06 |
4989.080 |
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DEFERRED TAX
LIABILITIES |
1796.890 |
1708.480 |
1802.860 |
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TOTAL
|
22840.700 |
22191.190 |
17309.910 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
9432.710 |
8938.460 |
8748.290 |
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Capital work-in-progress
|
1414.170 |
851.550 |
462.710 |
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INVESTMENT
|
3681.780 |
2291.900 |
1466.020 |
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CURRENT ASSETS, LOANS &
ADVANCES
|
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Inventories
|
9025.610
|
5680.810
|
5069.410 |
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Sundry Debtors
|
4243.370
|
4587.660
|
4056.190 |
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Cash & Bank Balances
|
6028.760
|
7966.820
|
3249.740 |
|
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Loans & Advances
|
3026.390
|
3337.340
|
2261.330 |
Total Current Assets
|
22324.130
|
21572.630
|
14636.670 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
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Current Liabilities
|
11468.950
|
9611.870
|
6856.710 |
|
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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 |
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MISCELLANEOUS EXPENSES
|
73.070 |
193.320 |
323.240 |
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TOTAL
|
22840.700 |
22191.190 |
17309.910 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
52806.310 |
42361.330 |
34106.390 |
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|
|
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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 |
|
|
|
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Export Value
|
4513.050 |
5228.750 |
3028.560 |
|
|
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Import Value
|
1457.420 |
1062.740 |
841.300 |
|
|
|
|
|
Total Expenditure
|
48500.460 |
38715.400 |
31146.600 |
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 |
|
Type |
|
|
Full
Year |
|
Sales
Turnover |
|
|
71681.800 |
|
Other
Income |
|
|
708.000 |
|
Total
Income |
|
|
72389.800 |
|
Total
Expenditure |
|
|
64785.700 |
|
Operating
Profit |
|
|
7604.100 |
|
Interest |
|
|
53.300 |
|
Gross
Profit |
|
|
7550.800 |
|
Depreciation |
|
|
1505.700 |
|
Tax |
|
|
1402.000 |
|
Reported
PAT |
|
|
4412.900 |
|
Dividend
(%) |
|
|
1500.000 |
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
The company, the
flagship company of Hinduja Group was a leading manufacturer of commercial
vehicles in
In 1955, the
company entered into an agreement with Leyland motors,
The company is the
second largest manufacturer of medium/heavy-duty vehicles in
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
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
The company has
obtained contemporary rear axles technology support from Dana Corporation,
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,
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
Since then subject has been a major presence in
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
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
Subject is the second largest manufacturer of medium/heavy duty vehicles
and also manufactures industrial marine engines.
The company started by assembling
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,
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
As Per Web
Profile
Eight out of ten
metro state transport buses in
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 their customers. Offering transport solutions and
after-market support wherever their products operate - which is almost
everywhere.
They are spread
throughout
They are committed
to maintaining their 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
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,
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
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
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
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.
Turnover
crosses Rs 80 billion
Date:4/5/2007 Published
from :Corporate Office
Date : May 4, 2007 Published from
: Corporate
Press Release
Ashok
Leyland 2006-07 Turnover crosses Rs 80 billion Net Profit at Rs 4.4 billion, up
35% Earnings per share rise 23%
Ashok
Leyland, the Hinduja Group flagship company in
The
Company’s Gross Operating Margin moved up by 30%, to Rs 7,026.85 million (Rs
5,400.70 million). Better management of funds has resulted in lower financial
expense of Rs 53.32 million (Rs 164.53 million). Gross profit for the year is
at Rs 7,681.56 million (Rs 5,565.91 million), up 38%.
There
is a 34% improvement in profit before tax of Rs 6,045.06 million (Rs 4,523
million), after depreciation of Rs 1,505.74 million (Rs 1,260.06 million), and
an extra ordinary item: an expenditure of Rs 130.76 million (Rs 84.51 million)
for VRS compensation amortised. In 2005-06, there was a one-time extra ordinary
gain of Rs 301.66 million on the sales of DCU to Ennore Foundries.
Provisions
for taxation are higher for 2006-07: current taxation is at Rs 1,350.50 million
(Rs 1,130.50 million); deferred taxation at Rs. 230.20 million (Rs 72.30
million) and fringe benefit tax at Rs 51.50 million (47.00 million).
On an
enlarged paid-up equity share capital of Rs 1,323.87 million (Rs 1,221.59
million), earnings per share have risen 23%, to Rs 3.38 (Rs 2.74) for a one-
rupee share.
“Our
figures this year reflect how well we rode the boom in the market,” said Mr R
Seshasayee, Managing Director. Significantly, this is the second consecutive
year we improved our market share when total industry volume grew. “We fielded
products that improved customer profitability and supported them with a host of
value-added services. We fully utilized our enhanced capacities and helped
suppliers realize theirs through de-bottle necking. We reduced our operating
cost by 200 basis points thanks to Gemba initiatives”.
During
2006-07, the Company’s total sales volume reached an all-time high of 83,094
vehicles (61,655 vehicles), a rise of 35%. The Company’s market share in the
M&HCV segment rose by 0.8% to 28%.
There
were a few other revenue boosters. International Operations grew by 23.5% over
the previous year’s sales by selling 6,025 vehicles (4,879 vehicles). Engines
sales grew by 23% while Leyparts saw record sales of Rs. 3,288 million
reflecting a growth of 26%. With the market seeking more and more fully-built
solutions, the nascent Fully Built Vehicle division of the Company added nearly
Rs. 2,300 million to the top line.
Going
forward, Mr. Seshasayee said that at Prague-based AVIA Ashok Leyland Motors,
operations had been stabilized and an annual output of 1,400 vehicles was
targeted. As for the Chassis and Bus assembly plant at RAKIA, the Company expected
operations to kick off by March’08. Closer home, the integrated manufacturing
plant being set up at Pantnagar, Uttaranchal, the first phase of production
start up is being scheduled to be completed by the second half of FY 08-09 and
the second phase by March’10. State-of-the-art technology is being sourced from
across the globe with layouts being made for Lean Manufacturing and Automation.
As
part of the thrust to offer fully built vehicles, there are quite a few buses
and trucks in the pipeline. The Company is targeting a share of the airport bus
market and has lined up 3 buses under the brand name Avion for this segment. In
the area of trucks, on the anvil are the 4921, the 3135 Tipper and the 2518
Mining Tipper.
Work
is on in full swing on development work on Euro IV compliant engine.
Among
other business streams, the Company, through Ashley Design and Engineering
Services (ADES), recently acquired a Detroit-based testing services firm which
would help ADES to expand its customer base and serve leading auto makers in
the
Ashok
Leyland is all set to launch ALTRUX that will market quality pre-owned trucks
that will help customers improve the residual value of their assets.
While
continued thrust on infrastructure development and sustained economic growth
would be the key drivers fuelling growth, increase in input costs and hardened
interest rates could slow down the rate of growth, commented Mr Seshasayee.
|
Rs.
Million |
|||||
|
AUDITED
FINANCIAL RESULTS FOR THE QUARTER, NINE MONTHS AND YEAR ENDED 31-03-2007 |
|||||
|
|
Nine
Months Ended |
Quarter
Ended |
YEAR
ENDED (AUDITED) |
||
|
|
31.12.2006 |
31.03.2007 |
31.03.2006 |
31.03.2007 |
31.03.2006 |
|
Gross Sales / Income from
operations |
56
399.76 |
26
647.41 |
20
033.80 |
83
047.17 |
60
531.08 |
|
Less Excise duty |
7
627.92 |
3
737.49 |
2
685.58 |
11
365.41 |
8
054.51 |
|
Net sales / Income from
operations |
48
771.84 |
22
909.92 |
17
348.12 |
71
681.76 |
52
476.57 |
|
Expenditure |
|
|
|
|
|
|
a) (Increase) / Decrease in
finished / trading goods |
(2
327.36) |
1
680.43 |
1
961.16 |
(646.93) |
(2
049.46) |
|
b) Consumption of raw
materials (including work-in-progress) |
38
659.48 |
15
378.79 |
10
876.71 |
54
038.27 |
39
739.45 |
|
c) Staff cost |
3
643.76 |
1
163.19 |
815.58 |
4
806.95 |
4
038.87 |
|
d) Other expenditure |
4
418.43 |
2
038.19 |
1
507.84 |
6
456.62 |
5
347.01 |
|
Total |
44
394.31 |
20
260.60 |
15
161.29 |
64 654.91 |
47
075.87 |
|
Gross Operating Margin |
4
377.53 |
2
649.32 |
2
186.83 |
7
026.85 |
5
400.70 |
|
Other Income |
538.97 |
169.06 |
85.33 |
708.03 |
329.74 |
|
Financial Expenses - net |
34.53 |
18.79 |
73.14 |
53.32 |
164.53 |
|
Gross Profit |
4 881.97 |
2
799.59 |
2
199.02 |
7
681.56 |
5
565.91 |
|
Depreciation and impairment |
1
024.48 |
481.26 |
330.28 |
1
505.74 |
1
260.06 |
|
Profit before extraordinary
item and tax |
3
857.49 |
2
318.33 |
1
868.74 |
6
175.82 |
4
305.85 |
|
Extraordinary item - VRS
compensation amortised |
100.32 |
30.44 |
20.85 |
130.76 |
84.51 |
|
- Profit on |
0.00 |
- |
- |
|
(301.66) |
|
Profit Before Tax |
3
757.17 |
2
287.89 |
1
847.89 |
6
045.06 |
4
523.00 |
|
Provision - Current Taxation |
880.50 |
470.00 |
547.80 |
1
350.50 |
1
130.50 |
|
- Deferred Taxation |
152.00 |
78.20 |
(45.50) |
230.20 |
72.30 |
|
- Fringe benefit tax |
27.00 |
24.50 |
11.00 |
51.50 |
47.00 |
|
Net Profit |
2
697.67 |
1
715.19 |
1
334.59 |
4 412.86 |
3
273.20 |
|
Paid-up Equity Share
Capital'(Face value per share Re 1 each) |
1
323.30 |
1
323.87 |
1
221.59 |
1
323.87 |
1
221.59 |
|
Reserves excl. Revaluation
Reserve |
|
|
|
17
392.26 |
12
663.49 |
|
Basic Earnings Per Share (Rs) |
2.08 |
1.32 |
1.12 |
3.38 |
2.74 |
|
Basic Earnings Per Share
excluding extra ordinary items net of tax (Rs) |
2.13 |
1.33 |
1.13 |
3.45
|
2.59 |
|
Diluted earnings per share
(Rs.) |
2.07 |
1.30 |
0.99 |
3.36 |
2.58 |
|
Diluted earnings per share excluding
extraordinary items net of tax (Rs.) |
2.12 |
1.32 |
1.00 |
3.43 |
2.45 |
|
Dividend per share (in Rs.) -
Interim |
|
|
|
1.50
|
- |
|
Dividend per share (in Rs.) -
Final |
|
|
|
- |
1.20 |
|
Aggregate of non-promoter shareholding
- Number of shares |
630,966,033 |
631,535,035 |
600,834,526 |
631,535,035 |
600,834,526 |
|
- Percentage of shareholding |
47.68 |
47.70 |
49.18 |
47.70 |
49.18 |
1. Out of 77,300 Foreign currency convertible notes (FCCN)
of US $ 1,000 each outstanding as at March 31, 2006, holders of 71,900 FCCN
aggregating to US$ 71.90 million exercised their option to convert during the
year and were allotted 102,283,541 equity shares of face value of Re.1 at the
prevailing conversion price of Rs. 31. Cumulatively upto March 31, 2007,
holders of FCCN aggregating to US$ 94.60 million have exercised their option to
convert and were accordingly allotted 134,576,117 equity shares, leaving a
balance of FCCN amounting to US$ 5.40 million.
2. As per the terms and conditions of the Foreign Currency
Convertible Note issue in April 2004, upon declaration of interim dividend on
March 21, 2007 conversion price has been reset at Rs.30 (earlier Rs. 31) for a
Re.1 share. Note holders have an option to convert each note of US $ 1000 into
1470 shares of Re.1 each. Diluted earnings per share have been worked out on
this basis.
3. Other expenditure includes exchange difference arising
out of restatement of foreign currency assets and liabilities. For the nine
months ended December 31, 2006 this amounts to a net loss of Rs. 23.82 million.
For the quarter ended March 31, 2007, this amounts to a net gain of Rs. 53.79
million (against a net gain of Rs. 46.06 million for quarter ended March 31,
2006). For the year ended March 31, 2007 this was a net gain of Rs. 29.97
million (against the net loss of Rs. 35.33 million for the year ended March 31,
2006).
4. The Company has reckoned employee benefits for the year
ended March 31, 2007 in accordance with the revised Accounting Standard 15 -
Employee Benefits. In terms of transitional provisions of the said Standard,
Gross liability of Rs. 781.54 million (Rs 517.90 million net of tax) pertaining
to prior years has been adjusted from the opening General Reserve.
5. The Company declared an interim dividend of 150% i.e. Rs.
1.50 per share of face value of Re. 1 for the financial year 2006-07 at its
Board meeting held on March 21, 2007 which has been paid to the shareholders on
the record date (i.e. March 29, 2007). The Board of directors has not
recommended any final dividend for the said financial year.
6. Avia Ashok Leyland Motors s.r.o and Ashok Leyland (UAE)
LLC have ceased to be subsidiaries during the quarter following restructuring
of ownership pattern.
7. 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’.
8. Figures for the previous periods are regrouped wherever
necessary.
9. The above financial results were reviewed by the Audit
committee and then approved by the Board of Directors at its meeting held on
May 04, 2007.
10. At the beginning of the quarter, no investor complaint
was pending. During the quarter, 173 complaints were received. Of these, 169
were resolved and 4 complaints were pending at the end of the quarter. These
were resolved by April 4, 2007.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.41.34 |
|
|
1 |
Rs.81.81 |
|
Euro |
1 |
Rs.55.74 |
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 EXPLANATIONS
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|