BUSINESS
INFORMATION REPORT
1. Summary Information
|
Country |
|
||
|
Company Name |
ASHOK LEYLAND
LIMITED |
Principal Name 1 |
MR. R J SHAHANEY |
|
Status |
GOOD |
Principal Name 2 |
MR. D G HINDUJA |
|
Registration # |
18-000105 |
||
|
Street Address |
NO. 1, |
||
|
Established Date |
07.09.1948 |
SIC Code |
-- |
|
Telephone# |
91-44-22206000 |
Business Style 1 |
MANUFACTURING |
|
Fax # |
91-44-22206001 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
COMMERCIAL
VEHICLES |
|
|
# of employees |
13218 |
Product Name 2 |
ENGINES |
|
Paid up capital |
Rs.1,330,342,000/- |
Product Name 3 |
FERROUS CASTINGS |
|
Shareholders |
PROMOTER AND PROMOTER GROUP-44.60% PUBLIC SHAREHOLDING-55.40% |
Banking |
BANK OF |
|
Public Limited Corp. |
YES |
Business Period |
62 YEARS |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
A (62) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
HOLDING COMPANY |
|
HINDUJA AUTOMOTIVE LIMITED |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
25,014,443,000
|
Current Liabilities |
25,920,657,000
|
|
Inventories |
16,382,400,000
|
Long-term Liabilities |
22,038,918,000 |
|
Fixed Assets |
42,495,592,000 |
Other Liabilities |
8,173,268,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
56,132,843,000 |
|
Invest& other Assets |
8,927,989,000 |
Retained Earnings |
35,357,239,000 |
|
|
|
Net Worth |
36,687,581,000 |
|
Total Assets |
92,820,424,000 |
Total Liab. & Equity |
92,820,424,000 |
|
Total Assets (Previous Year) |
78,362,667,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
72,447,105,000 |
Net Profit |
4,236,748,000 |
|
Sales(Previous yr) |
59,810,737,000 |
Net Profit(Prev.yr) |
1,899,963,000 |
MIRA INFORM REPORT
|
Report Date : |
20.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
ASHOK LEYLAND
LIMITED |
|
|
|
|
Registered Office : |
No. 1, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
07.09.1948 |
|
|
|
|
Com. Reg. No.: |
18-000105 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L34101TN1948PLC000105 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHEA00171D /
CHEA07627E |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACA4651L |
|
|
|
|
Legal Form : |
Public Limited
Liability Company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturing of Commercial
Vehicles, Engines and Ferrous Castings. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
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 |
|
Maximum Credit Limit : |
USD 146750000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track.
Financial position of the company appears to be sound. Directors are reported
to be experienced and respectable businessmen. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office : |
No. 1, |
|
Tel. No.: |
91-44-22206000 |
|
Fax No.: |
91-44-22206001 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate
Office : |
19, Rajaji Salai,
Chennai – 600 001, |
|
Tel. No.: |
91-44-25342141 |
|
Fax No.: |
91-44-25342493 |
|
E-Mail : |
chandrasekharan.ar@ashokleyland.com
|
|
|
|
|
Factory : |
Located at : Ennore Hosur – Unit I 175 Hosur
Industrial Complex, Hosur - 635 126, Hosur – Unit II 77 Electronic
Complex, Hosur – Unit IIA Cab Panel Press Shop,
SIPCOT Industrial Complex, Bhandara Plot No.1 Alwar Plot No. SPL 298,
Matsya Industrial Area, Alwar - 301 030, Ambattur 3A/A and 2 North
Phase, SIDCO Industrial Estate, Ambattur, Chennai - 600 098 Technical Centre Vellivoyalchavadi,
Via Manali New Town, Chennai - 600 103, Pant Nagar Plot No.1, Sector
XII, IIE, Pant Nagar - 263 153, |
|
|
|
|
Sales and Marketing
Division : |
480 Anna Salai,
Nandanam, Chennai – 600 035, |
|
Tel. No.: |
91-44-24341536 |
|
Fax No.: |
91-44-24346220 |
|
E-Mail : |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. R J Shahaney |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. D G Hinduja |
|
Designation : |
Vice Chairman (Alternate : Y M Kale) |
|
|
|
|
Name : |
Anil Harish (from 30.10.2009) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D J Balaji Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A K Das (Alternate : P. Banerjee) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P
N Ghatalia (upto 12.08.2009) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ramachandran R Nair |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. F Sahami |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shardul S Shroff |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Anders Spare |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. V Sumantran |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R Seshasayee |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Vinod K. Dasari |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. K Sridharan |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. A R Chandrasekharan |
|
Designation : |
Executive Director and Company Secretary |
|
|
|
|
Name : |
Mr. J |
|
Designation : |
Executive Director
(Construction and Allied Businesses) |
|
|
|
|
Name : |
Mr. Anup Bhat |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. S Balasubramanian |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. A K Jain |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Jayendra Parikh |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. R.R.G. Menon |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. N Mohanakrishnan |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. M Nataraj |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Rajinder Malhan |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Rajive Saharia |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Shekhar Arora |
|
Designation : |
Executive Director (HR) |
|
|
|
|
Name : |
Mr. B M Udayashankar |
|
Designation : |
Executive Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
513,618,712 |
44.60 |
|
|
513,618,712 |
44.60 |
|
Total shareholding
of Promoter and Promoter Group (A) |
513,618,712 |
44.60 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
66,093,447 |
5.74 |
|
|
580,825 |
0.05 |
|
|
1,109,360 |
0.10 |
|
|
157,179,809 |
13.65 |
|
|
175,109,628 |
15.21 |
|
|
500 |
- |
|
|
500 |
- |
|
|
400,073,569 |
34.74 |
|
|
|
|
|
|
89,891,746 |
7.81 |
|
|
|
|
|
|
118,732,575 |
10.31 |
|
|
13,869,865 |
1.20 |
|
|
15,441,780 |
1.34 |
|
|
2,850,165 |
0.25 |
|
|
304,800 |
0.03 |
|
|
381,596 |
0.03 |
|
|
11,874,019 |
1.03 |
|
|
1,000 |
- |
|
|
30,200 |
- |
|
|
237,935,966 |
20.66 |
|
Total Public shareholding
(B) |
638,009,535 |
55.40 |
|
Total (A)+(B) |
1,151,628,247 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
164,600,070 |
- |
|
|
14,110,000 |
- |
|
|
178,710,070 |
- |
|
Total
(A)+(B)+(C) |
1,330,338,317 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Commercial Vehicles, Engines and Ferrous Castings. |
||||||||||||||||
|
|
|
||||||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2010)
Installed capacity – Two shifts
Commercial vehicles - 1,50,500 Nos.
|
Particulars |
Unit |
|
|
Actual
Production |
|
Commercial Vehicles |
Nos. |
|
|
64,673 |
|
Engines@ and Gensets |
Nos. |
|
|
17,934 |
|
|
|
|
|
|
@ Engines manufactured against spare capacity of commercial vehicles
GENERAL INFORMATION
|
No. of Employees : |
13218
(Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
Note 1. a) Debentures
and term loan from banks aggregating Rs.6666.667 millions (2009: Rs.2283.333
millions) are secured by a first paripassu charge created / to be created on
certain immovable properties and movable assets of the Company. External
commercial borrowing from banks aggregating to Rs.449.001 millions (2009:
Rs.760.800 millions) is secured by a first charge on the Aircraft of the
company. b) Cash credit
facility is secured by a first charge on certain movable assets and goods-in-transit
and book debts (excluding deferred receivables). 2. Debentures
are to be redeemed at par in equal installments, as stated below:
3. Loans include Rs.391.167 millions (2009: Rs.870.267 millions) due
within 12 months.
Note
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name 1 : |
M Chartered Accountants |
|
|
|
|
Name 2 : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Cost Auditors
: |
Geeyes and
Company |
|
|
|
|
Collaboration:
|
IVECO Fiat |
|
|
|
|
Membership : |
Confederation of
Indian Industry |
|
|
|
|
Holding
Company : |
|
|
|
|
|
Fellow subsidiary : |
|
|
|
|
|
Associates : |
|
|
|
|
|
Joint
Ventures : |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Re.1/- each |
Rs.2000.000
millions |
|
|
|
|
|
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
524598695 |
Equity shares |
Re.1/- each |
Rs.524.599 millions |
|
341742940 |
Equity shares of issued by way of conversion
of debentures |
Re.1/- each |
Rs.341.743
millions |
|
323157240 |
Equity shares of issued through Global
Depository Receipts |
Re.1/-
each |
Rs.323.157
millions |
|
141044117 |
Equity shares of issued by way of conversion
of Foreign Currency Convertible Notes (FCCN) |
Re.1/- each |
Rs.141.044
millions |
|
|
|
|
Rs.1330.543
millions |
Subscribed
& Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
524394020 |
Equity shares |
Re.1/- each |
Rs.524.394 millions |
|
341742940 |
Equity shares of issued by way of
conversion of debentures |
Re.1/- each |
Rs.341.743
millions |
|
323157240 |
Equity shares of issued through Global
Depository Receipts |
Re.1/-
each |
Rs.323.157
millions |
|
141044117 |
Equity shares of issued by way of
conversion of Foreign Currency Convertible Notes (FCCN) |
Re.1/- each |
Rs.141.044
millions |
|
|
Add: Forfeited shares |
|
Rs.0.004
million |
|
|
|
|
Rs.1330.342
millions |
Of the above,
1. 1,47,88,880 Equity shares were allotted under an agreement without payment being received in cash.
2. 6,23,08,110 Equity shares were allotted as fully paid up by way of bonus shares by capitalisation out of General reserve and from Securities premium account.
3. Hinduja Automotive Limited, the holding company, holds 51,36,18,712 equity shares of Re.1 each and 54,86,669 Global depository receipts equivalent to 16,46,00,070 Equity shares of Re. 1 each.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
1330.342 |
1330.342 |
1330.340 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
35357.239 |
33408.648 |
20159.480 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
36687.581 |
34738.990 |
21489.820 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7115.668 |
3044.133 |
1902.400 |
|
|
2] Unsecured
Loans |
14923.250 |
16537.306 |
6972.610 |
|
TOTAL BORROWING
|
22038.918 |
19581.439 |
8875.010 |
|
|
DEFERRED TAX
LIABILITIES |
3845.369 |
2634.369 |
2538.200 |
|
|
Deferred
Liability |
765.485 |
0.000 |
0.000 |
|
|
Foreign Currency
Monetary Item Translation Difference - net |
(124.501) |
38.411 |
0.000 |
|
TOTAL
|
63212.852 |
56993.209 |
32903.030 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
42495.592 |
33991.163 |
15255.500 |
|
Capital work-in-progress
|
5614.697 |
9982.894 |
5292.450 |
|
|
|
|
|
|
|
INVESTMENT
|
3261.549 |
2635.571 |
6099.000 |
|
|
DEFERRED TAX
ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
16382.400
|
13300.144
|
12239.140
|
|
|
Sundry Debtors
|
10220.615
|
9579.742
|
3758.350
|
|
|
Cash & Bank Balances
|
5189.205
|
880.836
|
4513.700
|
|
|
Loans & Advances
|
9604.623
|
7895.435
|
8241.370
|
Total Current Assets
|
41396.843
|
31656.157
|
28752.560
|
|
Less : CURRENT
LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Sundry Creditors
|
15625.520
|
11100.420
|
|
|
|
Other Current Liabilities
|
10295.137
|
7588.221
|
|
|
|
Provisions
|
3686.915
|
2680.817
|
3452.310
|
Total Current Liabilities
|
29607.572
|
21369.458
|
22719.400
|
|
Net Current Assets
|
11789.271
|
10286.699
|
6033.160
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
51.743 |
96.882 |
222.920 |
|
|
|
|
|
|
|
TOTAL
|
63212.852 |
56993.209 |
32903.030 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
72447.105 |
59810.737 |
77291.230 |
|
|
|
Other Income |
704.454 |
496.228 |
739.990 |
|
|
|
TOTAL (A) |
73151.559 |
60306.965 |
78031.220 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses
|
64818.713 |
55116.386 |
69251.340 |
|
|
|
Voluntary retirement scheme compensation amortised |
32.715 |
134.887 |
127.370 |
|
|
|
TOTAL (B) |
64851.428 |
55251.273 |
69378.710 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8300.131 |
5055.692 |
8652.510 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
811.304 |
1187.087 |
497.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7488.827 |
3868.605 |
8155.110 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION, AMORTISATION AND
IMPAIRMENT
(F) |
2041.079 |
1784.142 |
1773.610 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5447.748 |
2084.463 |
6381.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
624.729 |
184.500 |
1688.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4236.748 |
1899.963 |
4693.100 |
|
|
|
|
|
|
|
|
|
|
Excess provision written back - Dividend |
-- |
2.205 |
NA |
|
|
|
- Corporate dividend tax thereon |
-- |
0.375 |
NA |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4823.019 |
5200.738 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer from / (to) - Debenture redemption reserve |
(41.667) |
295.833 |
NA |
|
|
|
- General reserve |
1000.000 |
250.000 |
NA |
|
|
|
Proposed dividend |
1995.507 |
1330.338 |
NA |
|
|
|
Corporate dividend tax thereon |
331.429 |
226.091 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
5774.498 |
4823.019 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export – FOB Value |
6041.093 |
8630.774 |
7560.482 |
|
|
|
Interest |
101.328 |
288.130 |
141.905 |
|
|
|
Others (Includes freight, insurance, dividend and
commission earned) |
302.092 |
911.648 |
425.323 |
|
|
TOTAL EARNINGS |
6444.513 |
9830.552 |
8127.71 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2833.714 |
2476.209 |
1637.240 |
|
|
|
Trading goods and others |
165.378 |
85.074 |
65.570 |
|
|
|
Spares & Tools |
39.923 |
55.618 |
65.660 |
|
|
|
Capital Goods |
2711.536 |
2938.178 |
1361.720 |
|
|
TOTAL IMPORTS |
5750.551 |
5555.079 |
3130.190 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.18 |
1.43 |
3.53 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
23479.780 |
27139.550 |
22272.450 |
|
Total Expenditure |
21125.770 |
24076.960 |
20612.180 |
|
PBIDT (Excl OI) |
2354.010 |
3062.590 |
1660.270 |
|
Other Income |
47.300 |
48.140 |
16.730 |
|
Operating Profit |
2401.310 |
3110.730 |
1677.000 |
|
Interest |
316.180 |
394.850 |
474.810 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
2085.130 |
2715.880 |
1202.190 |
|
Depreciation |
614.690 |
640.590 |
646.910 |
|
Profit Before Tax |
1470.440 |
2075.290 |
555.280 |
|
Tax |
244.000 |
404.700 |
121.600 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1226.440 |
1670.590 |
433.680 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1226.440 |
1670.590 |
433.680 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.79
|
3.15
|
6.01
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.52
|
3.49
|
8.26
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.49
|
3.18
|
11.52
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.06
|
0.30
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.41
|
1.18
|
1.47
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.40
|
1.48
|
1.27
|
LOCAL AGENCY FURTHER INFORMATION
BUSINESS OPERATIONS
The commercial vehicle
industry which was severely impacted during the previous year, as a result of
the economic slowdown, continued to be sluggish in the first half of the year.
However, thanks to the stimuli provided by the Government, primarily in the
form of excise duty reduction and improved availability of bank finance, the
market witnessed a robust revival of demand during the second half of the year.
A number of supply constraints came in the way of fully exploiting the new
available opportunities. Overall, during the year, with a focus on marketing
efforts, cost control, and effective working capital management, the Company
considerably improved profitability.
BORROWINGS
During the year,
the Company continued to make investments for capacity expansion and for strategic
purposes, both within the Company and through associate companies. In order to
fund such programs, besides using internal accruals, the Company focused on
liquidating non-core investments and augmenting resources through
cost-effective borrowings. Accordingly, during the year, the Company disposed
off investments in long-term bonds and raised Rs.1120.000 millions besides
availing term loans of Rs.5000.000 millions. The total long-term borrowings of
the Company in the form of external commercial borrowings, debentures and term
loans, outstanding at the end of the year, aggregated to Rs.22040.000 millions.
PANTNAGAR PLANT, UTTARAKHAND
With the
commissioning of the modern, fully integrated plant at Pantnagar (Uttarakhand)
in March 2010, additional capacity for 75,000 vehicles/year has been created.
Overall annual capacity for the Company is now 1,50,500 vehicles (on a
two-shift basis).
OTHER KEY VENTURES
Ashley Alteams India Limited
The
state-of-the-art manufacturing facility at Cheyyar, near Kanchipuram (Tamil
Nadu) was inaugurated during the year. The Company has begun supplies meeting
the stringent requirements of customers in the Automotive and Telecommunication
Sectors.
Albonair (
During 2007, the
Company established Albonair GmbH for development of vehicle emission treatment
/ control systems and products. In order to cater to the emerging markets in
Defiance Technologies Limited
With the
experience of the management team in providing manufacturing services to global
customers integrating Process, IT and Operations backed by the manufacturing
services capability available, the Company is expected to exploit the
opportunity in providing services through Defiance Technologies Limited,
promoted by it during the year. Considering the synergy between the activities
of Ashley Design and Engineering Services (ADES), a Division of Subject
(subsequently rechristened as Defiance Technologies Division) engaged in
engineering services and the activities of Defiance Technologies Limited,
Defiance Technologies Division was, through a slump sale, integrated with
Defiance Technologies Limited during the year.
Future plan of action:
- Next generation
cabs and engine platforms under development.
- Process and
methodologies being developed in order to ensure that drive line selection is
suitable for the intended application in terms of performance like fuel
efficiency, turnaround time, etc.
- Migration of
Haulage models to the ‘U Truck’ platform in order to modularize vehicle
concepts completely and thereby introduce flexibility in manufacturing and
sourcing.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
A. Economy and Market Trends
Global Economy
After the
unprecedented global economic downfall, World GDP dropped by 0.5 percent (IMF)
in 2009. However, the revival has been better than expected, moderate in many
developed economies but strong in most emerging economies. In most countries,
Government initiatives and support have been key to kick start the recovery.
This is an important turnaround after the free fall in world trade, industrial
production, asset prices and global credit availability in early 2009 which
threatened to push the global economy into the abyss of a new great depression.
For the year
2010-11, IMF has predicted an increase of about 4.2 percent in World GDP.
However, the United Nations expects the world economy to bounce back with a
mild 2.4 per cent growth in 2010. Economies that are off to a strong start are
likely to remain in the lead, as growth in others is likely to be held back due
to the lasting damage to financial sectors and household balance sheets.
Activity remains dependent on highly accommodative macroeconomic policies and
is subject to downside risks.
Indian Economy
As per Reserve
Bank of India (RBI), real GDP growth for 2009-10 was at 7.5 percent, however,
baseline projection of real GDP growth for 2010-11 is placed at 8 percent with
an upside bias. Further, the Economic Survey and RBI point out that a strong
domestic demand will support the recovery in
The partial
rollback of indirect tax cuts is not expected to significantly affect the
economy’s growth prospects. Tax concessions offered to the middle class,
expected to benefit 60 percent of the tax payers, will boost private
consumption and offset the impact of rise in excise duties. Further, the budget
significantly raises the allocation to key infrastructure sectors. A whopping
Rs.1735520.000 millions has been provided for infrastructure development, which
accounts for over 46 percent of the total plan allocation. Budget allocation
for road transport has increased by over 13 percent from Rs.75200.000 millions
to Rs.198940.000 millions. Both these measures will help raise
Industrial growth
is expected to remain at 2009-10 levels on the back of sustained increase in
demand – both exports and domestic. In the event of a normal monsoon, agriculture
is expected to grow at a higher rate than its trend because of a low base of
2009-10, when the sector had contracted due to severe drought.
Commercial Vehicle (CV) Industry
Among the Auto
segments, the CV industry (and in particular the medium and heavy auto segment)
was the worst hit by the sudden recession witnessed during 2008-09
characterised by plant shutdowns and production cuts. However, various quick
initiatives by the Government, in particular, the reduction in excise duty to 8
percent on both buses and trucks, 50 percent accelerated depreciation on new
trucks and for buses purchased under the JNNURM scheme, cut in fuel prices,
etc. boosted CV sales from a low of 20,282 vehicles in December'08 to 33,072
vehicles in May 2009.
After a sharp drop
in 2008-09, recovery in the economy, the Government's stimulus package and easy
finance rates helped the CV industry record 38 percent growth in domestic sales
during 2009-10. Within the CV segment, Light Commercial Vehicles (LCVs) posted
a 43 percent growth, while the M and HCV segment grew 34 percent. LCVs
contributed to about 54 percent of the overall commercial vehicle segment,
compared to 52 percent in the previous year.
Sales of
multi-axle trucks and trailers are one of the best indicators to gauge the
momentum of economic activity in the country. Data from
However, it should
be noted that overall sales figures for M and HCV are still lower than the
pre-recession sales figures. Doubtless, the segment is witnessing a turnaround
but needs to grow even more to achieve the targets laid down in the Automotive
Mission Plan. For the upcoming year, it is expected that the LCV segment will
continue to grow at a rapid pace.
Exports for the
industry is yet to recover since 2008-09. Exports of buses registered a
negative growth of 32 percent, while trucks registered 22 percent drop over
previous year.
Overall, the
industry has been back to good shape and there is a positive feeling about the
current fiscal (2010-11). However, there is reason to be cautious as a result
of a combination of four factors – the excise hike, new emission norms, (and
consequent increase in vehicle price) rising commodity prices and a possible
hike in interest rates. As per
Going ahead,
whilst market demand is robust, the vehicle industry is facing a severe
challenge of capacity constraints among domestic suppliers, with manufacturers
having no option but to import specific items. The Finance Ministry had imposed
an anti-dumping duty on some parts imported from
It is expected
that the Government will extend the deadline for BS-III compliant emission
norms until October’10, as a result of non-availability of appropriate fuel.
B. Ashok Leyland - The Year (2009-10) in Brief
Against the
backdrop of increase in demand for commercial vehicles, the Company registered
sales of 57,139, 21 percent more than the previous year. This includes 16,405
buses and 40,734 trucks, 2 percent and 31 percent respectively more than the
previous year. The Company lost 2.4 percentage points market share in the
Indian medium and heavy commercial vehicle market during the financial year
2009-10, mainly due to loss in share of the bus segment.
The Company sold
5,979 vehicles in the overseas markets during 2009-10. This represents a
decrease of approximately 12 percent over the previous year, which was largely
due to the reduced demand especially in the Middle East (economic downturn),
where volume dropped from 2,525 units in 2008-09 to 868 units in 2009-10 i.e. a
fall of 66 percent.
The Company lost
market share in Q1 of 2009-10. Market share dropped from 25.7 percent in
2008-09 to 17 percent in Q1 of 2009-10. During this period, the Company
switched over to ‘cash and carry’ policy in order to augment the liquidity and
used this opportunity to run down stock in the distribution pipeline.
At the same time, the
Northern and Western parts of the country witnessed some revival from the
downturn, whereas the Southern region remained in a slowdown phase. Moreover,
at that time, buyers seemed to be less focused on the bigger multi-axle
vehicles and trailers which are the best selling products of the Company.
Reason for this buying pattern was lower availability of load in the market;
hence smaller vehicles provide better capacity utilization. Revival of the
Southern market has helped the Company regain most of its lost market share and
overall, in year 2009-10, the Company achieved 23.3 percent market share.
Engines business
volume dropped by 11 percent compared to 2008-09. A total of 19,388 engines
were sold by the Company including 8,732 engines sold under the LEYPOWER brand
of generators. Spare parts sales accounted for Rs.6420.000 millions during
2009-10 against Rs.5730.000 millions during previous year. Defence sales volume
of the Stallion kits registered a growth of 8 percent over last year and
achieved a sales volume of 2,371 units.
Several steps were
taken to contain costs and conserve cash. The Company worked only at about 50
percent of the working week in all its manufacturing units during first half of
the year. Overall, the Company produced 64,673 vehicles in the year compared to
a production of 54,049 units in previous year, an increase of 20 percent, due
to rise in demand in the latter half of the year.
To remain
competitive whilst adding value to the customer, the Company introduced the
U-Truck, its latest range of products during Auto Expo in January 2010. The
U-Truck range is designed and developed in line with the Company’s strategic
objective of becoming a low cost producer alongside maximizing of customer
value. This range provides a flexible platform to meet various customer
requirements (different applications, emission norms, load requirements)
through a large number of variants/ combinations (from 16 tonne GVW to 49 tonne
GCW) that can be derived from a small number of modules in a shorter time
frame. This will also lead to lower cost of production. Customers will be
benefited as the U-Truck will provide world-class features at Indian prices.
For customers with a fleet of U-trucks, spare parts inventory cost will reduce
due to the modularity of parts. The launch of the U-Truck Tractor and Tipper
range is planned in Q2 of the current financial year.
With better road
conditions,
To make commercial
vehicle driving an attractive profession, it is imperative to improve driving
conditions. To resolve this challenge, the Company has initiated a programme
called Next Generation Cab (NGC), which will provide cabs with world-class
standards related to noise/heat insulations, ventilation, ergonomics, comfort
and driver safety all at affordable cost. NGC will be launched on the U-Truck
range and will redefine the way vehicles are developed in
The Company seeks
to utilise its presence in Pantnagar to spread the benefits of
industrialisation to reach the youth of the region, by creating a stepping
stone for them to start a career. The Company will sponsor them for 3-4 year
courses offered in association with a reputed technical training institute.
During training, they will learn and earn. The curriculum will cover
contemporary management and manufacturing concepts, side by side with an
opportunity for practical hands-on learning at the modern plant. This training
will give them the skills and knowledge to be effective shop floor associates
and will qualify them for managerial positions eventually, cueing a
breakthrough practice aptly called the “integrated workforce” as it seeks to
break the conventional hierarchical divisions on the shop floor.
Hinduja Leyland Finance
In a move aimed at
increasing sales, the Company has set up a non-banking finance company Hinduja
Leyland Finance (HLF) a captive financing arm. HLF kicked off operations across
130 centers in 16 cities and plans to expand the business to 300 centers. The
new company would fulfill the needs of the commercial vehicle buyers as banks
and other financial institutions still show some reluctance in funding
commercial vehicle purchases and are very selective in providing financial
assistance.
JV with Nissan Motors
As already
informed, the Company entered into a JV with Nissan Motors to address the
tremendous growth opportunities in the Light Commercial Vehicles segment. During
2009-10, contribution of LCVs increased to 54 percent of the total commercial
vehicle volumes. Due to the slowdown in the economy and in the commercial
vehicle industry, the JV modified its manufacturing strategy to optimise
investments. This new strategy helped leverage the surplus capacities available
at the two parent companies, with the ability to increase JV production
capacity at the appropriate time. The JV is expected to roll out its first LCV
product in April 2011.
JV with John Deere
The company Ashok
Leyland John Deere Construction Equipment Company Private Limited was
incorporated in July 2009 as a 50:50 Joint Venture with Ashok Leyland and John
Deere Construction and Forestry Company, as partners. John Deere (JD),
The project is on
schedule and orders for manufacturing equipment have been placed. Discussions
are on with key suppliers to ensure cost and time readiness. The Marketing Plan
is being developed. Product specs appropriate to the Indian markets have been
worked out along with the JV Partner and engineering work is in full swing to
ensure product readiness in time.
Recruitment of key
personnel is in progress as per the JV’s plans. Approvals from relevant
Government Authorities have also been obtained. While the initial range of products
have been identified and firmed up, options for additional product lines are
being evaluated.
JV with Continental AG
The JV focused on
consolidating the execution plan for the existing projects, which were aligned
with a roadmap for stabilization and growth. Key thrust areas during the last
year were building technical competence, developing innovative low cost
products for the Company and Continental and engaging in engineering services
to align with Continental’s product development process.
Albonair GmbH
Albonair GmbH was
established in December 2007 to provide cost-effective after treatment systems
for commercial vehicles in emerging markets to leverage the opportunities
created due to the introduction of stringent exhaust regulations similar to
Euro 4 regulations and above from 2010. The company would provide exhaust after
treatment solutions based on Selective Catalytic Reduction (SCR) technology and
other technologies like Diesel Particulate Filter or Oxidation Catalysts to the
Company and to other commercial vehicle manufacturers.
During 2009-10,
Albonair GmbH successfully developed the complete after-treatment system based
on SCR for emerging markets. In order to be locally present in
Results of Operation
The Company
generated cash profits from operations after tax of Rs.6560.000 millions. After
reckoning working capital requirements, the Company registered a net cash
inflow of Rs.10900.000 millions from its operations.
Cash outflow in
investing activities for FY 2009-10 amounted to Rs.990.000 millions against an
inflow of Rs.940.000 millions in FY 2008-09. Cash inflow from financing
activities is lower mainly due to lower quantum of long-term borrowings raised
during 2009-10.
Profit before tax
and exceptional item is Rs.5480.000 millions. During the year, the Company
charged Rs.30.000 millions towards amortisation of VRS expenses. After
providing for taxes at Rs.1210.000 millions (including deferred tax), profit
after tax for the current year is Rs.4240.000 millions. The Earnings per Share
(EPS) increased by 123% from Rs.1.43 per share in 2008-09 to Rs.3.18 per share
in the year.
The Years Ahead
There is a growing
consensus across the world that the worst of the financial crisis is under
control. Economies globally have started to stabilise and recover from the
recession experienced in past two years. The Indian economy has emerged much
stronger from the global liquidity/economic crisis. FY 2010-11 has begun with a
positive outlook towards growth and sustainability. In further support of this
optimism in the CV industry, the Government has enhanced the allocation for
road building for FY 2010-11 at Rs.199 bn., which is higher than last year by
13%. The Company is well positioned to meet the demand surge and technology
challenges. The Company is poised to consolidate its position in the Indian CV
market, by offering enhanced product features at competitive costs thus
offering increased value to the customers.
Going Concern
In the opinion of
the Directors, the Company will be in a position to carry on its existing
commercial vehicles / engines business and accordingly it is considered
appropriate to prepare the financial statements on the basis of a going
concern.
FINANCIAL
RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2010
(Rs.
in millions)
|
Particulars |
Three Months Ended 31.12.2010 (Unaudited) |
Nine Months Ended 31.12.2010 (Unaudited) |
|
1. Net Sales / Income from operations |
22272.451 |
72891.777 |
|
|
|
|
|
2.
Expenditure |
|
|
|
a) (Increase) / Decrease in stock of finished/ trading
goods |
(1493.953) |
(3554.906) |
|
b) Consumption of raw materials and movement in
work-in-progress |
17178.599 |
55073.748 |
|
c) Purchase of traded goods |
609.011 |
2089.908 |
|
d) Employees cost |
2439.233 |
6579.062 |
|
e) Depreciation |
646.908 |
1902.189 |
|
f) Other expenditure |
1879.295 |
5627.098 |
|
g) Total |
21259.093 |
67717.099 |
|
|
|
|
|
3. Profit from operations before other income, interest and
exceptional Items (1-2) |
1013.358 |
5174.678 |
|
4. Other income |
16.733 |
112.172 |
|
5. Profit before Financial expenses and exceptional Items
(3+4) |
1030.091 |
5286.850 |
|
6. Financial expenses – net |
474.810 |
1185.839 |
|
7.
Profit after Financial expenses but before Exceptional Items (5-6) |
555.281 |
4101.011 |
|
8. Exceptional Items |
-- |
-- |
|
9.
Profit (+)/Loss(-) from Ordinary Activities before tax (7+8) |
555.281 |
4101.011 |
|
10. Tax expense – Income tax |
121.600 |
770.300 |
|
11.
Net Profit (+)/Loss(-) from Ordinary Activities after tax (9-10) |
433.681 |
3330.711 |
|
12. Extraordinary Item (net of tax) |
-- |
-- |
|
13. Net Profit for the period (11-12) |
433.681 |
3330.711 |
|
14. Paid up equity share capital (Face value of Re.1/- per
share) |
1330.342 |
1330.342 |
|
15. Reserves excluding revaluation reserves as per balance
sheet of previous accounting year |
-- |
-- |
|
16. Basic Earning per share (EPS) (Rs.) (not annualised) |
0.33 |
2.50 |
|
17. Dividend per share (Rs.) |
-- |
-- |
|
18. Public shareholding |
|
|
|
- Number of shares |
652119535 |
652119535 |
|
- Percentage of shareholding |
49.02 |
49.02 |
|
19. Promoters and Promoters group Shareholding- |
|
|
|
a) Pledged /Encumbered |
|
|
|
Number of shares |
237052102 |
237052102 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
34.95 |
34.95 |
|
Percentage of shares (as a % of total share capital of the
company) |
17.82 |
17.82 |
|
b) Non Encumbered |
|
|
|
Number of shares |
441166680 |
441166680 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
65.05 |
65.05 |
|
Percentage of shares (as a % of total share capital of the
company) |
33.16 |
33.16 |
(1) The above financial results were reviewed by the Audit committee and
then approved by the Board of Directors at its meeting held on January 22,
2011.
(2) The statutory auditors have conducted a limited review of the above results,
(3) (i) Pursuant to the notification G.S.R.225 (E) dated March 31, 2009
issued by Ministry of Corporate Affairs, the Company has opted (in the year
ended March 31, 2009), to account for exchange difference on Long term monetary
items in foreign currency (i.e. those items whose term of settlement exceeds
twelve months from date of its origination) as directed in the said
notification. Accordingly, all long term assets and liabilities outstanding in
foreign currency are translated at the closing rates.
Exchange difference on translation or settlement of long term foreign
currency monetary items at rates different from those at which they were
initially recorded or April 1, 2007, whichever is later, in so far as it
relates to acquisition of depreciable assets are adjusted to the cost of the
assets. In other cases, such exchange differences on translation are
accumulated in “Foreign currency monetary item translation difference account
and amortised by recognition as income or expense in each period over the
balance term till settlement occurs but not beyond March 31, 2011. As of
December 31, 2010, the unamortised exchange difference on account of above
adjustment is a net loss of Rs.25.968 millions (as against a net loss of
Rs.45.468 millions as of December 31, 2009 and a net loss of Rs.124.501
millions as of March 31, 2010)
(ii) The Company has adopted the principles of Accounting Standard 30 —
Financial Instruments:
Recognition and measurement, issued by Institute of Chartered
Accountants of India, with effect from April 1, 2008, in respect of forward
contracts for firm commitment and highly probable forecast transaction meeting
necessary criteria as “Cash flow hedges”. The gains and losses on effective
cash flow hedges are recognized in Hedge reserve till the underlying forecasted
transaction occurs.
(4) Tax expense includes deferred tax which for the quarter and nine
months ended December 31, 2010 is an expense of Rs.150.700 millions and
Rs.544.600 millions respectively (against an expense for the quarter and nine
months ended December 31, 2009 of Rs.350.900 millions and Rs.443.200 millions
respectively) and for the year ended March 31, 2010 was an expense of
Rs.1211.000 millions. The balance tax expense for the quarter and nine months
ended December 31, 2010 comprises current tax expense for the said periods
after considering credit available under section 11 5JAA (IA) of the Income tax
Act, 1961 of Rs.139.013 millions and Rs.581.121 millions respectively.
There is no current tax expense for the quarter and nine months ended
December 31, 2009 and for the year ended March 31, 2010 as the Minimum
Alternate Tax for the said periods of Rs.238.248 millions, Rs.417.216 millions
and Rs.921.546 millions respectively was available as credit under section 115JAA
(1A) of the Income tax Act, 1961 and hence recognised as an asset.
(5) The company’s primary segment is identified as business segment
based on nature of products, risks, returns and the internal business reporting
system and secondary segment is identified based on the geographical location
of the customers as per Accounting Standard 17. The company is principally
engaged in a single business segment viz., Commercial vehicles and related
components.
(6) Number of Investor complaints: at the beginning of the quarter — 4,
received during the quarter — 140, disposed of during the quarter — 144 and
unresolved at the end of the quarter — Nil.
(7) Figures for the previous periods are regrouped I amended wherever
necessary.
Contingent
liabilities
|
Particulars |
31.03.2010 (Rs.
in millions) |
|
a) Guarantees |
2739.487 |
|
b) Partly paid shares |
0.014 |
|
c) Claims (net) against the Company not acknowledged as debts – Sales
tax |
268.927 |
|
– Others |
114.365 |
|
d) Bills discounted |
-- |
FIXED ASSETS:
·
Freehold and
·
Buildings
·
Plant and
Machinery
·
Furniture, Fittings and Equipment
·
Computer
·
Fittings and
Equipments
·
Vehicles and Aircraft
·
Computer Software
·
Technical Know how
WEBSITE DETAILS:
HISTORY
The origin of Ashok Leyland can be traced to the urge for
self-reliance, felt by independent
Since then Ashok Leyland has been a major presence in
Access to international technology enabled the Company to set a tradition to be first with technology. Be it full air brakes, power steering or rear engine busses, Ashok Leyland pioneered all these concepts. Responding to the operating conditions and practices in the country, the Company made its vehicles strong, over-engineering them with extra metallic muscles. "Designing durable products that make economic sense to the consumer, using appropriate technology", became the design philosophy of the Company, which in turn has moulded consumer attitudes and the brand personality.
Ashok Leyland vehicles have built a reputation
for reliability and ruggedness. The 5,00,000 vehicles they have put on
the roads have considerably eased the additional pressure placed on road
transportation in independent
In the populous Indian metros, four out of the five State Transport Undertaking
(STU) buses come from Ashok Leyland. Some of them like the double-decker and
vestibule buses are unique models from Ashok Leyland, tailor-made for high-density routes.
In 1987, the overseas holding by Land Rover Leyland International Holdings
Limited (LRLIH) was taken over by a joint venture between the Hinduja Group,
the Non-Resident Indian transnational group and IVECO. (Since July 2006, the
Hinduja Group is 100% holder of LRLIH).
The blueprint prepared for the future reflected the global ambitions of the
company, captured in four words: Global Standards, Global Markets. This was at
a time when liberalisation and globalisation were not yet in the air. Ashok
Leyland embarked on a major product and process up gradation to match
world-class standards of technology.
In the journey towards global standards of quality, Ashok Leyland reached a
major milestone in 1993 when it became the first in
PROFILE:
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.
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.
PRESS RELEASES
ASHOK
Date:
22/1/2011 Published from :Corporate
Ashok Leyland today announced the appointment of Mr. R. Seshasayee as Executive Vice Chairman effective 1st April 2011 to lead the new strategic direction of the Company. Mr Seshasayee, the present Managing Director of Ashok Leyland and Executive Vice Chairman of the holding Company, Hinduja Automotive Limited, will continue to have overall responsibility for Ashok Leyland.
The Company also today announced that Mr. Vinod K. Dasari will be Managing Director (designate) of Ashok Leyland with immediate effect and will assume responsibility as Managing Director with effect from 1st April 2011. Mr Dasari is currently Chief Operating Officer and a Whole-time Director of the Company.
Speaking on the new role for Mr Seshasayee, Mr. Dheeraj G Hinduja, Chairman, Ashok Leyland, said, “Under Mr Seshasayee’s leadership, Ashok Leyland has consistently grown from strength to strength to its present position. His contribution to the Company’s transformation has been immense and the Board is very keen that the organisation should continue to benefit from his insightful thinking, deep knowledge and wide experience. He will now focus on strategic initiatives towards globalisation of the Company’s operations as well as leadership development.”
Mr Seshasayee has been Managing Director from 1998 and his current term was due to expire on 31st March 2011.
“This is a planned transition,” said Dheeraj Hinduja, “Vinod was being groomed for this move over the last few years and he was progressively being entrusted with the responsibilities relating to Marketing, Manufacturing, Strategic Sourcing and Product Development. I am confident that Vinod will be able to successfully lead from the front. The Company is on the threshold of significant growth and the blend of experience and youth in the top leadership team will be a great asset.”
Mr Dasari joined Ashok Leyland in 2005, prior to which he
was Joint Managing Director of Cummins India Limited. Having started his career
with General Electric USA in 1986, Mr. Dasari worked at Timken for two years:
the assignments being as President, Global Rail division and Managing Director,
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.44.68 |
|
|
1 |
Rs.72.56 |
|
Euro |
1 |
Rs.63.53 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.