MIRA INFORM REPORT

Report Date :

23.06.2014

IDENTIFICATION DETAILS

Name :	ASHOK LEYLAND LIMITED

Registered Office :	No. 1, Sardar Patel Road, Guindy, Chennai – 600 032, Tamilnadu

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	07.09.1948

Com. Reg. No.:	18-000105

Capital Investment / Paid-up Capital :	Rs. 2660.680 Millions

CIN No.: [Company Identification No.]	L34101TN1948PLC000105

Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

Line of Business :	Manufacturing of Commercial Vehicles, Engines and Ferrous Castings.

No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

A (57)

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 178200000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Exist

Comments :	Subject is a well established and reputed company having a good track record. There appears a significant decline in its sales and profitability during the FY14. However, general financial position seems to be acceptable. Fundamental are reported to be healthy. The directors are reported to be well experienced. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. 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 – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Loan = A+ (Downgraded (AA))
Rating Explanation	Adequate degree of safety it carry low credit risk.
Date	September 2013

Rating Agency Name	ICRA
Rating	Short Term Non Fund Based Facilities = A1+
Rating Explanation	Highest degree of safety it carry lowest credit risk.
Date	September 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED

Management Non Cooperative. (91-44-22206000)

LOCATIONS

Registered Office :	No. 1, Sardar Patel Road, Guindy, Chennai – 600032, Tamilnadu, India
Tel. No.:	91-44-22206000
Fax No.:	91-44-22206001
E-Mail :	chandrasekharan.ar@ashokleyland.com secretarial@ashokleyland.com corpserv@integratedindia.com venkatasubramanian.S2@ashokleyland.com
Website :	www.ashokleyland.com

Corporate Office :	19, Rajaji Salai, Chennai – 600 001, Tamilnadu, India
Tel. No.:	91-44-25342141
Fax No.:	91-44-25342493
E-Mail :	sesh@ashokleyland.com jv@alc.global.net.in chandrasekharan.ar@ashokleyland.com

Factory 1 :	Kathivakkam High Road, Ennore, Chennai - 600057, Tamilnadu, India

Factory 2 :	175 Hosur Industrial Complex, Hosur - 635126, Tamilnadu, India

Factory 3 :	77 Electronic Complex, Perandapalli Village, Hosur - 635109, Tamilnadu, India

Factory 4 :	Cab Panel Press Shop, SIPCOT Industrial Complex, Mornapalli Village, Hosur - 635109, Tamilnadu, India

Factory 5 :	Plot No.1 MIDC Industrial Area Village, Gadegaon, Sakoli Taluk, Bhandara - 441904, Maharashtra, India

Factory 6 :	Plot No. SPL 298, Matsya Industrial Area, Alwar - 301030, Rajasthan, India

Factory 7 :	3A/A and 2 North Phase, SIDCO Industrial Estate, Ambattur, Chennai – 600098, Tamilnadu, India

Factory 8 :	Vellivoyalchavadi, Via Manali New Town, Chennai - 600103, Tamilnadu, India

Factory 9 :	Plot No.1, Sector XII, IIE, Pant Nagar - 263153, Uttarakhand, India

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Dheeraj G Hinduja
Designation :	Chairman (Alternate : Y M Kale)

Name :	Mr. R Seshasayee
Designation :	Executive Vice Chairman

Name :	Mr. Anil Harish
Designation :	Director

Name :	Mr. D J Balaji Rao
Designation :	Director

Name :	Mr. A K Das
Designation :	Director

Name :	Mr. Jean Brunol
Designation :	Director (from 20.10.2010 )

Name :	Mr. Jorma Antero Halonen
Designation :	Director (from 19.05.2011)

Name :	Mr. Sanjay K Asher
Designation :	Director (from 21.12.2010)

Name :	Mr. F. Sahami
Designation :	Director

Name :	Mr. Shardul S Shroff
Designation :	Director

Name :	Dr V Sumantran
Designation :	Director (Non Executive Vice Chairman)

Name :	Mr. Vinod K Dasari
Designation :	Managing Director

Name:	Mr. Y. M. Kamle
Designation :	Alternate Director

Name :	Mr. Anup Bhat
Designation :	Executive Directors

Name :	Mr. A K Jain
Designation :	Executive Directors

Name :	Mr. C G Belsare
Designation :	Executive Directors

Name :	Mr. Nitin Seth
Designation :	Executive Directors

Name :	Mr. P G Nilsson
Designation :	Executive Directors

Name :	Mr. Anuj Kathuria
Designation :	Executive Directors

Name :	Mr. Sam Burman
Designation :	Executive Directors

Name :	Mr. Rajive Saharia
Designation :	Executive Directors

Name :	Mr. N V Balachandar
Designation :	Executive Directors

Name :	Mr. B Venkat Subramaniam
Designation :	Executive Directors

Name :	Mr. Sundar Rajan R
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. R J Shahaney
Designation :	Chairman Emeritus

Name :	Mr. K Sridharan
Designation :	Chief Financial Officer

Name :	Mr. S Venkatasubramanian
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2014

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	1104646899	47.85
Sub Total	1104646899	47.85
Total shareholding of Promoter and Promoter Group (A)	1104646899	47.85
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	43749896	1.90
Financial Institutions / Banks	244971581	10.61
Central Government / State Government(s)	2218720	0.10
Insurance Companies	62770449	2.72
Foreign Institutional Investors	338504037	14.66
Any Others (Specify)	1000	0.00
Foreign Bank	1000	0.00
Sub Total	692215683	29.99
(2) Non-Institutions
Bodies Corporate	165872279	7.19
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	282132727	12.22
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	19234785	0.83
Any Others (Specify)	44328621	1.92
Clearing Members	23244617	1.01
Trusts	889573	0.04
Foreign Corporate Bodies	109388	0.00
Non Resident Indians	17423672	0.75
Overseas Corporate Bodies	2000	0.00
Foreign Nationals	160400	0.01
Limited Liability Partnership	580	0.00
Unclaimed Suspense A/c	2498391	0.11
Sub Total	511568412	22.16
Total Public shareholding (B)	1203784095	52.15
Total (A)+(B)	2308430994	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	329200140	0.00
(2) Public	23045500	0.00
Sub Total	352245640	0.00
Total (A)+(B)+(C)	2660676634	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Commercial Vehicles, Engines and Ferrous Castings.

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
Item Code No. (ITC Code)	87080000
Product Description	Spare Parts

PRODUCTION STATUS AS ON 31.03.2011

Installed capacity – Two shifts

Commercial vehicles - 1,50,500 Nos.

Particulars	Unit	Actual Production
Commercial Vehicles	Nos.	95,337
Engines@ and Gensets	Nos.	17,603

@ Engines manufactured against spare capacity of commercial vehicles

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

Bank of America
Bank of Baroda
Canara Bank
Central Bank of India
Citi Bank N.A.
Credit Agricole Corporate and Investment Bank
Deutsche Bank A.G.
HDFC Bank Limited
ICICI Bank Limited
IDBI Bank
Indian Bank
Punjab National Bank
Standard Chartered Bank
State Bank of India
State Bank of Patiala
The Bank of Tokyo - Mitsubishi UFJ Limited
The Hongkong and Shanghai Banking Corporation Limited
The Royal Bank of Scotland N.V.
Vijaya Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2013	Rs. In Millions 31.03.2012
LONG TERM BORROWINGS
Debentures	8900.000	3600.000
Term Loan from banks	3333.333	6000.000
SHORT TERM BORROWINGS
Loans from Banks (Including Working capital demand loan, Packing credit, etc)	6801.265	0.000

TOTAL	19034.598	9600.000


Banking Relations :	--

Auditors :
Name :	M S Krishnaswami and Rajan Chartered Accountants

Name :	Deloitte Haskins and Sells Chartered Accountants

Name :	Geeyes and Company Chartered Accountants

Holding Company :	Hinduja Automotive Limited, United Kingdom

Holding Company of Hinduja Automotive Limited, United Kingdom :	Machen Holdings SA

Holding Company of Machen Holding SA :	Machen Development Corporation, Panama

Holding Company of Machen Development Corporation, Panama :	Amas Holdings SA

Fellow Subsidiaries :	Hinduja Foundries Limited Hinduja Auto Components Limited Hinduja Automotive (UK) Limited

Associates :	Albonair GmbH, Germany Albonair (India) Private Limited Ashley Airways Limited (under liquidation) Ashley Aviation Limited, from November 8, 2012 Ashley Holdings Limited Ashley Investments Limited Ashok Leyland Defence Systems Limited Ashok Leyland (Nigeria) Limited, from March 6, 2013 Ashok Leyland (UAE) LLC, Ras Al Khaimah, UAE Ashok Leyland (UK) Limited Automotive Coaches and Components Limited, upto March 31, 2013 Defiance Technologies Limited Defiance Testing and Engineering Services, Inc. USA Gulf Ashley Motor Limited Irizar TVS Limited Lanka Ashok Leyland, PLC Mangalam Retail Services Limited Optare plc, UK

Joint Ventures :	Ashley Alteams India Limited Automotive Infotronics Limited Ashok Leyland John Deere Construction Equipment Company Private Limited Ashok Leyland Nissan Vehicles Limited Nissan Ashok Leyland Powertrain Limited Nissan Ashok Leyland Technologies Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

4000000000	Equity Shares	Rs.1/- each	Rs. 4000.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount

2014566829	Equity Shares	Rs.1/- each	Rs. 2014.567 Millions
646314480	Equity Shares (Global Depository Receipts)	Rs.1/- each	Rs. 646.314 Millions
	TOTAL		Rs. 2660.881 Millions

Subscribed & Fully Paid-up Capital :

No. of Shares	Type	Value	Amount

2014362154	Equity Shares	Rs.1/- each	Rs. 2014.362 Millions
646314480	Equity Shares (Global Depository Receipts)	Rs.1/- each	Rs. 646.314 Millions
760	Add :- Forfeited Shares		Rs. 0.004 Million
	TOTAL		Rs. 2660.680 Millions

AS ON 24.07.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

4000000000	Equity Shares	Rs.1/- each	Rs. 4000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

2660676634	Equity Shares	Rs.1/- each	Rs. 2660.677 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2660.680	2660.680	1330.342
(b) Reserves & Surplus	41890.366	39462.582	38299.279
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	44551.046	42123.262	39629.621

(3) Non-Current Liabilities
(a) long-term borrowings	27378.418	22933.511	23481.283
(b) Deferred tax liabilities (Net)	5273.669	4903.669	4438.869
(c) Other long term liabilities	17.785	0.000	0.000
(d) long-term provisions	785.126	765.630	784.635
Total Non-current Liabilities (3)	33454.998	28602.810	28704.787

(4) Current Liabilities
(a) Short term borrowings	7669.825	1017.500	0.000
(b) Trade payables	24853.685	25709.672	23085.067
(c) Other current liabilities	17350.634	17500.483	10344.224
(d) Short-term provisions	3086.833	4203.744	4169.446
Total Current Liabilities (4)	52960.977	48431.399	37598.737

TOTAL	130967.021	119157.471	105933.145

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	49184.342	45657.125	43443.804
(ii) Intangible Assets	3634.486	3477.816	2894.113
(iii) Capital work-in-progress	5626.183	4351.906	2007.009
(iv) Intangible assets under development	1263.091	1130.303	1572.652
(b) Non-current Investments	23376.319	15344.789	12299.968
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4796.955	6082.395	3846.303
(e) Other Non-current assets	120.321	74.274	31.579
Total Non-Current Assets	88001.697	76118.608	66095.428

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	18960.208	22306.252	22089.034
(c) Trade receivables	14194.113	12307.642	11644.982
(d) Cash and cash equivalents	139.424	325.558	1795.272
(e) Short-term loans and advances	8909.804	7265.743	3343.942
(f) Other current assets	761.775	833.668	964.487
Total Current Assets	42965.324	43038.863	39837.717

TOTAL	130967.021	119157.471	105933.145

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	124812.000	129043.265	111771.061
		Other Income	623.515	403.503	444.514
		TOTAL (A)	125435.515	129446.768	112215.575

Less	EXPENSES
		Cost of materials consumed	75394.164	91214.833	80645.003
		Purchases of Stock-in-Trade - Traded goods	13117.394	5073.737	2733.697
		Employee benefits expense	10755.134	10203.942	9597.163
		Other expenses	14060.856	11659.934	8310.415
		Changes in inventories of finished goods, work in-progress and Stock-in-Trade	2719.769	(1670.130)	(1652.240)
		Exceptional items	(2895.561)	(15.978)	0.000
		TOTAL (B)	113151.756	116466.338	99634.038

Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12283.759	12980.430	12581.537

Less	FINANCIAL EXPENSES (D)		3768.857	2552.532	1889.234

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8514.902	10427.898	10692.303

Less/ Add	DEPRECIATION/ AMORTISATION (F)		3807.835	3528.132	2674.310

	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		4707.067	6899.766	8017.993

Less	TAX (H)		370.000	1240.000	1705.000

	PROFIT / (LOSS) AFTER TAX (G-H) (I)		4337.067	5659.766	6312.993

	EARNINGS IN FOREIGN CURRENCY
		Export of goods - FOB value	14254.334	15403.597	11090.912
		Royalty, know-how, professional and consultation fees	6.995	112.248	0.000
		Interest and dividend	134.494	90.382	88.049
		Others [ Includes freight, insurance and commission earned]	781.830	853.310	586.693
	TOTAL EARNINGS		15177.653	16459.537	11765.654

	IMPORTS
		Raw Materials	4039.132	4403.902	4445.936
		Trading Goods and Others	333.931	215.180	163.465
		Stores & Spares	50.424	156.808	100.679
		Capital Goods	2806.370	1842.161	924.135
	TOTAL IMPORTS		7229.857	6618.051	5634.215

	Earnings / (Loss) Per Share (Rs.)		1.63	2.13	2.37

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.46	4.37	5.63

Net Profit Margin (PBT/Sales)	(%)	3.77	5.35	7.17

Return on Total Assets (PBT/Total Assets}	(%)	4.67	7.02	8.90

Return on Investment (ROI) (PBT/Networth)		0.11	0.16	0.20

Debt Equity Ratio (Total Debt /Networth)		0.79	0.57	0.59

Current Ratio (Current Asset/Current Liability)		0.81	1.02	1.24

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	1330.342	2660.680	2660.680
Reserves & Surplus	38299.279	39462.582	41890.366
Net worth	39629.621	42123.262	44551.046

long-term borrowings	23481.283	22933.511	27378.418
Short term borrowings	0.000	1017.500	7669.825
Total borrowings	23481.283	23951.011	35048.243
Debt/Equity ratio	0.593	0.569	0.787

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	111771.061	129043.265	124812.000
		15.453	(3.279)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	111771.061	129043.265	124812.000
Profit	6312.993	5659.766	4337.067
	5.65%	4.39%	3.47%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CHENNAI COURT

CASE STATUS INFORMATION SYSTEM

Case Status:	Pending	Pending	Pending
Status Of:	ORIGINAL APPLICATION	WRIT APPEAL	WRIT APPEAL
Case No.:	100	1718	1718
Year :	2014	2012	2012
Petitioner :	M/S. BHARAT MOTORS LIMITED	THE STATE TRANSPORT AUTHORITY	JULIET GRACE
Respondent :	ASHOK LEYLAND LIMITED	M/S.ASHOK LEYLAND LIMITED	M/S ASHOK LEYLAND LIMITED
Pet's Advocate :	M/S.P.B.SAMPATH KUMAR	GOVT PLEADER	M/S.K.VARADHA KAMARAJ
Res's Advocate :		M/S G. KRISHNAKUMAR
Category :	NO CATEGORY MENTIONED	NO CATEGORY MENTIONED	NO CATEGORY MENTIONED
	Last Listed on: No Date Mentioned	Last Listed on: No Date Mentioned	Last Listed on: No Date Mentioned
Case Updated on :	Jun 11 2014	Oct 3 2012	Aug 21 2013

Unsecured Loan	Rs. In Millions 31.03.2013	Rs. In Millions 31.03.2012
LONG TERM BORROWINGS
Long term monetary item in foreign currency External Commercial Borrowings from banks	14476.000	12549.167
Other loans and advances
Interest free sales tax loans	571.476	669.217
Loans from a Financial institution	97.609	115.127
SHORT TERM BORROWINGS
Short term loans (STL)
(i) STL - 1	0.000	508.750
(ii) STL - 2	0.000	508.750
(ii) STL – 3	868.560	0.000

TOTAL	16013.645	14351.011

VIEW INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
1	10412488	25/03/2013 *	3,000,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE,, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	B72035017
2	10377386	26/09/2012 *	3,000,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	B59847954
3	10329292	15/03/2013 *	1,500,000,000.00	STATE BANK OF INDIA	SECURITIES AND SERVICES DIVISION, SBI CHENNAI MAIN BR., 84, RAJAJI SALAI, CHENNAI, TAMIL NADU - 60 0001, INDIA	B72617020
4	10291368	24/05/2011	1,000,000,000.00	THE BANK OF TOKYO-MITSUBISHI UFJ LIMITED	SESHACHALAM CENTRE, 6^TH and 7^TH FLOOR, DOOR NO.636/1, ANNA SALAI, TEYNAMPET, CHENNAI, TAMIL NADU - 600018, INDIA	B14702252
5	10243392	13/10/2010	2,100,000,000.00	STATE BANK OF INDIA	SECURITIES AND SERVICES DIVISION, CHENNAI MAIN BRANCH, NO.84, RAJAJI SALAI, CHENNAI, TAMIL NADU - 600001, INDIA	A96329719
6	10240077	15/03/2013 *	2,100,000,000.00	STATE BANK OF INDIA	SECURITIES AND SERVICES DIVISION, SBI CHENNAI MAIN BR., 84, RAJAJI SALAI, CHENNAI, TAMIL NADU - 600001, INDIA	B72618671
7	10228341	18/06/2010	500,000,000.00	MIZUHO CORPORATE BANK LIMITED	MUMBAI BRANCH, MAKER CHAMBERS III, 1ST FLOOR, JAM NALAL BAJAJ ROAD, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A89042725
8	10218109	18/06/2010 *	2,000,000,000.00	CENTRAL BANK OF INDIA	ADDISON BUILDING, 803, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA	A88596879
9	10190936	18/02/2010 *	3,000,000,000.00	INDIAN BANK	THOUSAND LIGHTS BRANCH, KANNAMAL BUILDINGS,611, ANNA SALAI, CHENNAI, TAMIL NADU - 600006, INDIA	A79528824
10	90286915	22/08/2003 *	250,000,000.00	STATE BANK OF INDIA	84 RAJAJI SALAI MA, MADRAS, TAMIL NADU, INDIA	-
11	90286909	25/11/2002 *	250,000,000.00	STATE BANK OF INDIA	84 RAJAJI SALAI MA, MADRAS, TAMIL NADU, INDIA	-
12	90289031	07/08/2002	350,000,000.00	HDFC BANK LIMITED	759 ANNA SALAI, CHENNAI, TAMIL NADU, INDIA	-
13	90291195	09/01/2004 *	350,000,000.00	HDFC BANK LIMITED	759 ANNA SALAI, CHENNAI, TAMIL NADU, INDIA	-
14	90287734	07/08/2002 *	1,000,000,000.00	STATE BANK OF INDIA	22 RAJAJI SALAI, CHENNAI, TAMIL NADU, INDIA	-
15	80053062	17/04/2002	50,000,000.00	STATE BANK OF INDIA	22 RAJAJI SALAI, CHENNAI, TAMIL NADU - 600001, INDIA	-
16	90286894	27/08/2001 *	500,000,000.00	STATE BANK OF INDIA	22 RAJAJI SALAI MA, MADRAS, TAMIL NADU, INDIA	-
17	90287654	04/05/2011 *	15,000,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH, 18/3,RUKMINI LAKSHMIPATHI ROAD, EGMORE, CHENNAI, TAMIL NADU - 600008, INDIA	B12708863
18	90287645	28/12/2001 *	750,000,000.00	ICICI LIMITED	ICICI TOWER KURLA COMPLEX, MUMBAI, TAMIL NADU, INDIA	-
19	90288995	28/03/2001 *	750,000,000.00	ICICI BANK LIMITED	ICICI TOWER KURLA COMPLEX, MUMBAI, TAMIL NADU, INDIA	-
20	90286888	12/09/2000 *	500,000,000.00	STATE BANK OF INDIA	22 RAJAJI SALAI MA, MADRAS, ORISSA, INDIA	-
21	90288984	26/09/2000 *	500,000,000.00	STATE BANK OF INDIA	22 RAJAJI SALAI, CHENNAI, TAMIL NADU, INDIA	-
22	90286881	31/01/2000 *	1,800,000,000.00	STATE BANK OF INDIA	22 RAJAJI SALAI MA, MADRAS, TAMIL NADU, INDIA	-
23	90288963	30/11/1999	500,000,000.00	STATE BANK OF INDIA	149 GREAMS ROAD, CHENNAI, TAMIL NADU, INDIA	-
24	90287563	19/03/2002 *	250,000,000.00	STATE BANK OF INDIA	149CREAMS ROAD, CHENNAI, TAMIL NADU, INDIA	-
25	90287551	10/03/2000 *	4,250,000,000.00	STATE BANK OF INDIA	149 CREAMS ROAD, CHENNAI, TAMIL NADU, INDIA	-
26	90287525	19/01/1999 *	500,000,000.00	ICICI BANK LIMITED	163 BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA, INDIA	-
27	90287499	10/01/1998	306,200,000.00	EXPORT INMPORT BANK OF INDIA	CENTRE ONE CUFFE PARADE, MUMBAI, MADHYA PRADESH, INDIA	-
28	90287483	15/09/1997	149,000,000.00	BANK OF BARODA	149 CREAMS ROAD 28 RAJAJI SALAI, CHENNAI, TAMIL NADU, INDIA	-
29	90287481	27/08/1997	40,000,000.00	CANARA BANK	THOOSDND LIL, CHENNAI, TAMIL NADU, INDIA	-
30	90287471	27/10/1997 *	1,520,000,000.00	STATE BANK OF INDIA	22 RAJAJI SALAI, MADRAS, TAMIL NADU, INDIA	-
31	90287466	27/10/1997 *	250,000,000.00	THE INDUSTRIAL VREDIT AND INVEST. CORPN. OF INDIA LIMITED	163 BACKBAY, MUMBAI, TAMIL NADU, INDIA	-
32	90286862	14/05/1997	750,000,000.00	STATE BANK OF INDIA	22 RAJAJI SALAI MA, MADRAS, TAMIL NADU, INDIA	-
33	90287451	25/02/1997	143,420,000.00	BANK FO BARODA	28 RAJAJI SALAI, BHUBANESWAR, TAMIL NADU, INDIA	-
34	80033213	04/05/1983	20,000,000.00	RAJASTHAN STATE INDUSTRIAL DEVELOPMENT AND	INVESTMENT CORPORATION LIMITED, UDYOG BHAVAN TILAG MARG, JAIPUR, RAJASTHAN - 302005, INDIA	-
35	90288735	09/03/2000 *	144,000,000.00	STATE BANK OF INDIA	149 GREAMS ROAD, CHENNAI, TAMIL NADU, INDIA	-
* Date of charge modification

COMPANY PERFORMANCE

The year saw a slowdown in the Indian economy with a consequent adverse impact on the commercial vehicle industry. Whilst the overall volume declined by 2% year over year, the medium and heavy duty segment clocked a 25% drop. Despite the above, the Company increased its market share from 23.5% to 26.5% in the M and HCV segment.

In the Light Commercial Vehicle (LCV) segment, 'Dost' continued to grow in volumes. The performance of Power Solution Business and Spares have been very encouraging. Export volumes dropped primarily due to the setback in Sri Lanka which could not be fully recouped in other geographies.

LONG TERM BORROWINGS:

SECURED NON-CONVERTIBLE DEBENTURES

During the year, the Company issued Secured Non-convertible Debentures to the tune of Rs. 3500.000 Millions for a tenor of 3 years (NCD Series AL 17 for Rs. 2000.000 Millions and NCD Series AL 19 for Rs. 1500.000 Millions) and Rs. 2500.000 Millions for a tenor of 5 years (NCD Series AL 18 for Rs. 1000.000 Millions and NCD Series AL 20 for Rs. 1500.000 Millions) aggregating to Rs. 6000.000 Millions for FY 2012-13. During the year, no Secured Non-Convertible Debenture had fallen due for redemption.

EXTERNAL COMMERCIAL BORROWINGS (ECBS)

The Company contracted ECBs in Japanese Yen, equivalent to USD 60 Mn, during FY 2011-12 and USD 115 Mn in 2012-13 from Banks for an average tenor of 5 to 5.6 years (Door to door of 6 to 7 years) on unsecured basis and USD 110 Mn was utilized during FY 2012-13. The funds drawn under ECBs were utilized to fund capital expenditure programme of the Company and other approved end uses as per extant RBI guidelines and the terms of the loan.

The Company repaid ECB loan installments that fell due, in Japanese yen, equivalent to USD 81.66 Mn and USD 16.66 Mn during FY 2012-13.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

MARKET TRENDS

ECONOMY

During FY 2012-13, the Indian economy experienced a low growth rate of about 5-5.5%. Year-on-year GDP growth rate in the 3rd quarter touched 4.5%, the second lowest in recent years.

Agricultural growth at 1.8% year-on-year was lower compared to 3.6% of the previous fiscal because of the delayed onset of monsoon that resulted in food grain production contracting by about 3.5%.

Industrial sectors, too, continued to reel under the severe slowdown. The general IIP index contracted for 6 months out of 11, the manufacturing index for 5 months out of 11 and the mining index for 10 months out of 11. The general index, therefore, grew by a low 0.9% during the period April to February. The manufacturing index demonstrated a mere 1% growth during the same period. The mining index showed a de-growth of 2.5%. As a result, CSO has estimated manufacturing GDP growth of just 1.9% for the full year (2.7% last fiscal) and a mining growth of 0.4% for the full year (-0.6% last fiscal).

Going ahead, most market analysts expect FY 2013-14 GDP to be around 6%, assuming a normal monsoon. The Reserve Bank of India remains focused on containing inflation, and is expected to continue following a conservative policy on interest rates. Some positive movement is visible in the mining policy while the manufacturing slowdown appears to be slowly bottoming out. Lower crude prices are also expected to help the government meet its fiscal targets. However, much work remains to be done to free up core sectors and restart growth, and recovery is expected to be slow. Long term prospects for the Indian economy, however, continue to remain bright, given the favourable demographics and the directional commitment towards liberalisation.

In 2012, the global economy continued to perform weakly. World output was down from 4% in 2011 to 3.2% in 2012. Emerging and developing economies touched a low of 5.1%, reflecting a sharp drop from 6.4% in the previous year. Apart from the Middle East, Africa and ASEAN, most economies shrank significantly. The Euro zone shrank by 0.6%.

Going forward, outlook for the global economy has both areas of concern as well as some bright spots. IMF expects emerging and developing economies to grow relatively strongly at 5.3% and 5.7% for 2013 and 2014 respectively. While US is recovering faster and is expected to clock 1.9% and 3% for the same period, the Euro zone is expected to continue lagging, with bleak scenarios of -0.3% and 1.1% for

2013 and 2014 respectively. Even the stronger economies in Europe, such as Germany and France, have poor growth forecasts. Against this background, the overall global economic growth will remain muted.

COMMERCIAL VEHICLE INDUSTRY

Contrary to predictions made last year, the Commercial Vehicle (CV) industry fell despite the Light Commercial Vehicle (LCV) category performing well. The industry also saw the entry of new players into the market.

The overall CV market registered a de-growth of 2% in April-March 2013 as compared to the corresponding period last year. The overall volumes went down from 809,499 vehicles to 793,150, vehicles. The Medium and Heavy Commercial Vehicles (M and HCVs) segment declined by 23% to an overall volume of 268,623 vehicles while the LCV segment grew at 14% to reach 524,887 vehicles

The LCV segment has been one of the growing segments in the entire automobile space. The 2 - 3.5 T GVW segment, within LCVs, is driving growth with a year-on-year increase of 72% in volumes. This is on the back of strong demand for transportation of consumer goods within cities and replacement demand from upper-end three wheelers.

Reflecting the downtrend in the economy, multi-axle rigid trucks fell by over 32% compared to the previous year to reach 96,424 vehicles. These vehicles are used to transport a wide range of goods such as agricultural produce, cement, other materials used in construction and industrial goods. This drop was due to an overall slowdown in industrial and construction activity and the resultant caution among transporters. It was also in part due to the shift to rigid vehicles with higher capacity (8x2) for greater operating efficiencies. This trend was reflected in the tractor-trailer segment as well which registered a drop of 35% to reach 18,593 vehicles. The ICV (Intermediate Commercial Vehicle) trucks which are in the 10-12 tonne capacity range, also fell from 67,104 vehicles to 57,571 vehicles, a drop of over 14%. Sale of tippers also fell by 28%, mainly due to poor economic activity and the ban on mining in Karnataka and Goa.

The segment level drop was also reflected consistently across the four regions of the country. Among them, the Eastern region recorded the steepest fall of almost 35% in M and HCV sales over last year. This could be attributed mainly due to lack of mining activity across the region.

2012-13 was also a poor year for Indian exports, with sale of commercial vehicles dropping by 13% from 92,258

vehicles to 79,944 vehicles with key markets like Sri Lanka dropping drastically and procuring more from China.

The tepid economic environment and the high base, are bound to have an impact on Total Industry Volume (TIV) in the coming fiscal. Several industry analysts have projected growth rates at 4-8%. SIAM has projected an annual growth rate of 3-5% for medium and heavy duty vehicles and about 12-14% for light vehicles.

ASHOK LEYLAND - THE YEAR (2012-13) IN BRIEF

MEDIUM AND HEAVY COMMERCIAL VEHICLES

Against a backdrop of a major slump in the CV market, Ashok Leyland grew its share in the domestic market in 2012-13 by 3%. The Company sold 70,916 M and HCVs in the domestic market which was 13% less than the previous year. This included 18,976 MandHCV buses and 51,940 M and HCV trucks, 10% less and 14% less respectively, compared to previous year.

The Company grew market share across most segments and regions. One of the biggest gains was in the ICV goods segment with the Company increasing its sales volumes by nearly 55%, resulting in 5% gain in market share. It must be noted that ICV goods, in the long term, remains one of the fastest growing segments.

The financial crunch and slowdown of economy witnessed in Sri Lanka, as well as the overall global economic situation, impacted Ashok Leyland’s international volumes this year. The Company exported 8,778 vehicles in 2012- 13, 32% lower than the previous year. Sri Lanka, a key overseas market, fell by over two-thirds compared to last year. However, the Company grew in other regions across the world, notably in the Middle East, where it registered a growth of 15%.

The Power Solutions Business earned revenues of Rs. 4030.000 Millions in the year 2012-13, achieving a 27% increase compared to the previous year.

Spare Parts business grew by a healthy 18% in 2012-13, with an all time high turnover of Rs. 10040.000 Millions.

The Defence business suffered due to cut-backs and budget constraints of the government resulting in sales of 275 vehicles and 2,463 kits reflecting a drop of 26% and 17% respectively.

In FY 2012-13, the Company produced 112,163 vehicles (including 35,401 nos. of LCV ‘Dost’), a 9% growth compared to the previous year. The Company significantly expanded its dealer network especially in areas where hitherto it had only limited coverage. Full service outlets grew to over 400 and, for the first time, the number of outlets in North exceeded the number in South.

To address the challenges faced in the domestic market, the Company laid considerable emphasis on product development and marketing efforts, targeted at the fastest growing segments and regions which resulted in promising growth in the last quarter of the fiscal. The Company has lined up several ground-breaking products for core segments in the upcoming fiscal, in the ICV as well as MDV segments apart from the Neptune engine that will be launched on multi-axle haulage vehicles.

Substantial focus has been given to improving customer satisfaction levels with targeted initiatives across all hubs that included better organisation of the sales force, customer lifecycle management and enhancement of service levels.

Finally, the Company remains committed to build capabilities in the identified five focus areas wherein it chose to invest heavily – quality, people, brand, innovation and efficiency. The Company has taken on challenging targets in each of these areas and has kicked off several initiatives to achieve them.

In summary, the Company has prepared well for the challenging economic scenario expected next year as well as increasing competition in the M and HCV space.

LIGHT COMMERCIAL VEHICLES BUSINESS

In 2012-13, the Company completed its first full year of participation in the fast-growing LCV segment in India. The first product, Ashok Leyland ‘Dost’, has contributed to transforming the SCV segment, by shifting the market

emphasis from sub 2 tonnes to 2-3.5 tonnes GVW. In FY 2012-13, the Company sold close to 35,000 ‘Dost’ vehicles. Today, ‘Dost’ is the second largest selling product in its segment, with a pan India market share of 18.5%, despite being launched only in 11 States. In States where it is present, ‘Dost’ enjoys market leadership across most, and a market share of 25.6%. The Company has also just started exporting ‘Dost’ to SAARC countries. To support the sale and service of LCVs, the Company has built a new LCV-oriented network of 100 touch points within 18 months.

In the upcoming financial year, the Company is planning to launch several variants of ‘Dost’ including a CNG version, the ‘Partner’ range of trucks and buses in the 4-6T segment, and the ‘Stile’ – a Multi-Functional Vehicle for commercial applications.

The Joint Venture Company, in which the Company is an equal partner with Nissan, is preparing for a new manufacturing facility near Chennai dedicated for LCV. Through these efforts, the Company would have a complete LCV product portfolio by the end of 2013-14 to meet a variety of evolving customer requirements.

HINDUJA LEYLAND FINANCE LIMITED

The Non-banking Finance Company (NBFC), Hinduja Leyland Finance Limited (HLFL) promoted by Ashok Leyland commenced their operations in March 2010. HLFL now has operations in 602 locations with an employee strength of 2350 (that has increased from 1199 in the year 2011-12)

In 2012-13, HLFL continued to grow rapidly and made a disbursement of Rs. 2,100 Crores across a wide range of segments, including M and HCVs, LCVs and 3-wheelers.

ASHOK LEYLAND - JOHN DEERE CONSTRUCTION EQUIPMENT COMPANY LIMITED

This 50:50 joint venture with John Deere was started to tap into the growing demand for construction equipment in the country. 2012-13 was the first full year of operations for this company. Notwithstanding the economic downturn, this JV sold over 660 Backhoe Loaders crossing the 5 percent market share in the Southern region. The product range is expected to grow in this fiscal with the introduction of other variants of the Backhoe Loader and also a new Wheel Loader machine next year. All products embody the best combination of pedigree designs and high degree of localisation. The Company has also achieved ‘best-inclass’ service benchmarks, which is key to productivity and customer profitability.

ALBONAIR GMBH

Albonair GmbH, Germany was established with a vision of being a complete solution provider for reducing automotive diesel emissions for Medium and Heavy Commercial Vehicles. In FY 2012-13, the Company made investments in Albonair to address the dual objectives of acquiring competence and cost-efficiency in the critical

area of future emission technologies and to use it to generate business opportunities in advanced technology components in an increasingly strategic area.

Albonair has already obtained orders from large European firms in the face of stiff competition from established global players. It is expanding its reach to other large automotive players in the international market and is on its way to becoming a significant global automotive supplier.

AUTOMOTIVE INFOTRONICS LIMITED

This Joint Venture Company (JVC) was formed in 2007 with equal equity holding by Continental AG and Ashok Leyland for designing, developing and adapting cost-efficient electric/electronics automotive products and customer specific applications specifically for India and India-like markets. The Company has developed various products like Instrument Clusters and Body Control units, Engine Control Panels for genset engines, on-board diagnostic and sensors for a variety of applications.

ASHLEY ALTEAMS INDIA LIMITED

Ashley Alteams India Limited (AAIL), manufacturer of High Pressure Die Castings, caters to the needs of customers in the Automotive, Telecom and Industrial spaces. AAIL has increased its supplies to existing customers like Ashok Leyland Limited, Delphi TVS, NSN, SFLAutolec and has attracted many new customers like Andrew, Poona Shims, etc. The Company has been facing challenges as a result of the downturn in the Telecom and Auto sectors, and seeks to re-orient its business to remain viable.

AVIA ASHOK LEYLAND MOTORS S.R.O

AVIA Ashok Leyland Motors s.r.o in Prague, has been producing trucks in the total weight class of 7.5 to 12 tonnes. In 2012, the company produced 1003 trucks for the markets of Europe, the United States, and Asia. The

economy in Europe continues to be bearish and continues to put severe strain on Avia.

DEFIANCE TECHNOLOGIES LIMITED

With a vision to be a world-class business solutions company, the focus of Defiance is to provide Engineering, Manufacturing and Enterprise solutions predominantly to the Manufacturing industry, by offering a comprehensive

range of consulting, technology and outsourcing solutions and services to global customers. The company has gained a significant customer base in the Engineering, ERP and IT service spaces both in India and abroad. To enhance its competency, the company plans to further build on its focus areas such as SAP solutions, Automotive, Aerospace and Defence Engineering solutions, Enterprise Mobility solutions, Social Media solutions and Cloud-based Enterprise solutions.

FIXED ASSETS

Freehold and Leasehold Land
Buildings
Plant and Machinery
Furniture, Fittings and Equipment
Computer
Fittings and Equipments
Vehicles and Aircraft
Computer Software
Technical Know how

CHARGES

ENTITY	COMPETENT AUTHORITY	REGULATORY CHARGES	REGULATORY ACTION(S) / DATE OF ORDER	FURTHER DEVELOPMENTS
ASHOK LEYLAND FINANCE LIMITED	BSE	AMALGAMATION/MERGER	DELISTED DUE TO AMALGAMATION/MERGER FROM 30-MAY-2005 19-NOV-2007
ASHOK LEYLAND FINANCE LIMITED	RBI	DID NOT COMPLY WITH THE PROVISIONS OF RBI ACT, 1934	REJECTION OF APPLICATION FOR CERTIFICATE OF REGISTRATION AS NBFC 31-OCT-2007
ASHOK LEYLAND FINANCE LIMITED	EPFO	EXEMPTED AND UNEXEMPTED ESTABLISHMENTS DEFAULTED WITH EPFO INCLUDING PROVIDENT FUND, PENSION AND EDLI CONTRIBUTION, ADMINISTRATION CHARGES AND PENAL DAMAGES OF RS.44.600 MILLIONS	AMONG OTHER ACTIONS, NAMES OF DEFAULTERS PUT ON THE EPFO WEBSITE 31-MAR-2012
ASHOK LEYLAND FINANCE LIMITED	NSE	HIGHEST NUMBER OF COMPLAINTS PENDING AS ON 30-NOVEMBER-2006	PUT UP ON NSE WEBSITE FOR PUBLIC NOTICE 07-DEC-2006	NOT APPEARING IN LIST AS ON 31-DECEMBER-2006
ASHOK LEYLAND FINANCE LIMITED	RBI	DID NOT COMPLY WITH THE PROVISIONS OF RBI ACT, 1934	REJECTION OF APPLICATION FOR CERTIFICATE OF REGISTRATION AS NBFC 31-JUL-2004

STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31^ST MARCH 2014

(Rs. in millions)

Sr. No.	Particular	Three Months Ended	Preceding Three Months Ended	Year Ended
		31.03.2014 (Unaudited)	31.12.2013 (Unaudited)	31.03.2014 (Unaudited)
1.	Income from Operations
	Net Sales	30209.552	19032.828	97357.336
	Other Operating Income	558.219	499.317	2076.931
	Net Sales/Income from Operations	30767.771	19532.145	99434.267

2.	Expenditure
	Cost of Material Consumed	18574.993	10556.513	59096.947
	Purchases of stock-in-trade - trading goods	3046.999	3702.419	12690.276
	Change in Inventories of Finished Goods, Work-In-Progress and Stock In Trade	1541.639	1309.357	4238.710
	Employee Benefits Expenses	2472.887	2396.223	9996.723
	Depreciation and Amortization Expenses	1034.468	883.314	3770.360
	Other Expenses	3291.8711	2536.670	11745.988
	f) Total	29962.857	21384.496	101539.004

3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	804.914	(1852.351)	(2104.737)

4.	Other Income	157.404	154.086	665.207

5.	Profit Before Interest and Exceptional Items (3+4)	962.318	(1698.265)	(1439.530)

6.	Interest	1125.729	1152.590	4529.248

7.	Profit After Interest but before Exceptional Items (5-6)	(163.411)	(2850.855)	(5968.778)

8.	Exceptional Items	3760.941	923.187	5056.589

9.	Profit from Ordinary Activities before Tax (7+8)	3597.530	(927.668)	(912.189)

10.	Tax Expense	(36.400)	(255.600)	(1206.000)

11.	Net Profit from Ordinary Activities after Tax (9-10)	3633.930	(1672.068)	293.811

12.	Extraordinary Item (net of expense)	--	--	--

13.	Net Profit for the period (11-12)	3633.930	(1672.068)	293.811

14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	2660.680	2660.680	2660.680

15.	Reserves Excluding Revaluation Reserve	--	--	30078.896

16.	Debenture Redemption Reserve	--	--	725.000

17.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised	1.37	(0.63)	0.11

18.	Dividend per share (Rs.)			--
19.	Debt Equity Ratio			1.05
20.	Debt Service Coverage Ratio			0.65
21.	Interest Service Coverage Ration			1.71

A.	Public Shareholding
1	-Number of Shares	1,226,829,595	1,243,453,553	1,226,829,595
	- Percentage of Shareholding	46.11%	46.73%	46.11%

2.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	474,104,204	474,104,204	474,104,204
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	33.07%	33.45%	33.07%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	17.82%	17.82%	17.82%

	b) Non Encumbered
	- Number of Shares	959,742,835	943,118,877	959,742,835
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	66.93%	66.55%	66.93%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	36.07%	35.45%	36.07%

Particulars	3 Months ended 31.03.204
Pending at the beginning of the quarter	5
Received during the quarter	76
Disposed of during the quarter	80
Remaining unresolved at the end of the quarter	1

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

Rs. In Millions

Particulars		As at 31.03.2014
	Particulars
A	EQUITY AND LIABILITIES
1	Shareholder’s Funds
	a) Share Capital	2660.700
	b) Reserves & Surplus	41818.200
	c) Money received against share warrants	--
	Sub Total- Shareholders funds	44478.900
2	Share application money pending allotment	--
3	Minority Interest	--
4	Non-current liabilities
	(a) Long term borrowings	32965.000
	(b) Deferred tax liabilities (net)	4067.700
	(c) Other long term liabilities	23.700
	(d) Long term provisions	678.700
	Sub Total- Non Current Liabilities	37735.100
5	Current liabilities
	(a) Short term borrowings	5874.100
	(b) Trade Payables	22141.500
	(c) Other current liabilities	16969.100
	(d) Short term provisions	881.300
	Sub Total- Current Liabilities	45866.000
	TOTAL-EQUITY AND LIABILITIES	128080.000
B	ASSETS
1	Non-current assets
	(a) Fixed assets	58413.900
	(b) Non-current investments	24053.100
	(c) Long term loans and advances	6727.700
	(d) Other non-current assets	330.900
	Sub-Total- Non current assets	89525.600
2	Current assets
	a) Current Investments	3843.800
	b) Inventories	11887.000
	c) Trade Receivables	12990.100
	d) Cash and cash equivalents	116.900
	(e) Short term loans and advances	8007.100
	(f) Other current assets	1709.500
	Sub-Total- current assets	38554.400
	TOTAL ASSETS	128080.000

Notes:

1. The Board of Directors have not recommended a dividend for the year ended March 31, 2014 at their meeting held on May 22, 2014 (Previous year Rs. 0.60 per equity share).

2. 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 as at April 01, 2007, 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, arising effective April 01, 2011, are accumulated in “Foreign currency monetary item translation difference account” and amortized by recognition as income or expense in each year over the balance term till settlement occurs but not beyond March 31, 2020. This is in line with Notification No. G.S.R 913 (E) dated December 29, 2011 issued by the Ministry of Corporate Affairs, Government of India, amending the Companies (Accounting Standards) Rules, 2006.

Accordingly,

a) Foreign exchange (Gain) / Loss relating to acquisition of depreciable assets, capitalized during the year ended March 31, 2014 aggregated Rs.2257.155 Millions [quarter ended March 31, 2014 Rs.(596.895) Millions; quarter ended March 31, 2013 Rs.(224.967) Millions; quarter ended December 31, 2013 : Rs. (247.860) Millions; year ended March 31, 2013 Rs. 1585.833 Millions].

b) The un-amortized net exchange difference in respect of long term monetary items relating to other than acquisition of depreciable assets, is a loss of Rs. 59.289 Millions as at March 31, 2014 [March 31, 2013: Loss of Rs. 9.635 Millions; December 31, 2013: Loss of Rs. 87.195 Millions]. These amounts are reflected as part of the “Reserves and Surplus” in line with the guideline issued by the Institute of Chartered Accountants of India.

3. 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.

4. The Company had adopted the principles of Accounting Standard 30 – Financial instruments: Recognition and measurement, issued by the Institute of Chartered Accountants of India, with effect from April 01, 2008, in respect of forward contracts for firm commitments and highly probable forecast transactions meeting necessary criteria for designation as "Cash flow hedges". The gains and losses on effective Cash flow hedges are recognized in Hedge Reserve Account till the underlying forecast transaction occurs.

5. In respect of previously revalued items of fixed assets sold / disposed, the Company has, during the year changed its earlier accounting practice to adjust the amount in revaluation reserve of such assets against the carrying value of such assets and recognized the consequent profit / sale thereof. The impact of the said change is a higher profit on sale / disposal of immovable properties by Rs. 1075.656 Millions for the year ended March 31, 2014 [the quarter ended March 31, 2014: Rs.1042.050 Millions; quarter ended December 31, 2013: Rs. 33.606 Millions; quarter ended March 31, 2013: NIL; year ended March 31, 2013 : Nil]

6. Tax expense comprises Current Tax, where applicable in respective periods, and Deferred Tax. Current tax is after considering Minimum Alternate Tax (MAT) credit entitlement under Section 115 JAA(1A) of the Income Tax Act, 1961. Deferred tax asset has been recognized on unabsorbed depreciation.

7. The figures set out above of the Company's standalone results for the three months ended March 31, 2014 are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2014 and the published unaudited year to date figures (as regrouped) upto December 31, 2013.

8. The figures for the previous periods have been reclassified / regrouped / amended, wherever necessary.

WEBSITE DETAILS

PRESS RELEASE

DHEERAJ HINDUJA FACES TRIAL BY FIRE AT TRUCKMAKER ASHOK LEYLAND

3/12/2014

The Hinduja brothers, who are the U.K.’s third richest, with a net worth of $10 billion, control the London-headquartered Hinduja Group, founded in India by their father, Parmanand Hinduja, a century ago and now a multinational conglomerate with businesses as diverse as trucks, lubricants, banking and health care. Of the four brothers the older two, Srichand and Gopichand, cochair the group and live in London. Prakash looks after banking interests from Switzerland, and the youngest, Ashok, oversees the family’s businesses in their native country from his Mumbai homestead.

After decades of working together the brothers, who remain tight despite their geographical separation, are now busy grooming their children to take charge of the family empire. Six of the 11 members of the third generation oversee different parts of the group, and each is being mentored also by an uncle. The family doesn’t get involved in operations but is very hands-on in monitoring everything else. Dheeraj Hinduja, the younger son of Gopichand but also under Ashok’s wing, has lately been facing a trial by fire. At age 42 Dheeraj is chairman of the $2 billion (revenues) Ashok Leyland, India’s second-largest truckmaker after Tata Motors TTM -0.15%, which finds itself stuck in a rut amid a prolonged industry downturn.

The once profitable company has run up losses of $54 million in the past three quarters. Moreover, it’s weighed down by debt of $850 million, partly due to an ambitious expansion that involved putting up a new factory and new joint ventures with Nissan Motor and John Deere. No surprise that the shares are down by 30% in the past year. “The last 21 months have been a nightmare,” acknowledges Dheeraj, who lives in London but travels to India every month. “No one could have foreseen that the recession would last this long.”

Sales of commercial vehicles in India have hit a speed bump thanks to the slowing economy and rising diesel prices. According to the Society of Indian Automobile Manufacturers, the commercial-vehicles market contracted by almost one-fifth in the past ten months. Ashok Leyland, too, saw a similar drop in the number of trucks it sold. For the first time in its history the company, which has embarked on a cost-cutting drive, had to lay off executive-level staff, offering a retirement package, and also slash its chief executive’s pay by 21%.

The hard times have forced the company to shelve plans to build a new factory to make smaller trucks with joint venture partner Nissan. To reduce debt it is selling peripheral businesses, sparking rumors that the Hindujas are mulling selling out altogether. “The company has made the right moves,” says automotive expert V.G. Ramakrishnan, Frost & Sullivan’s managing director for South Asia. “But unless the market comes back, it’s going to be a tough haul.”

Despite the overall gloom Dheeraj remains upbeat about what is around the corner. He’s counting on a new range of trucks in the portfolio with snappy names such as Boss, Dost (Hindi for “friend”), Partner and Captain to rev up sales. Some of these are being made in a more modern factory in Uttaranchal state in northern India that opened in 2010 and today accounts for one-third of production and a chunk of debt. But Dheeraj is sanguine: “Had we not invested when we did, I’d have been very worried today.”

He still has the full backing of uncle Ashok: “The market has been on a downward spiral since Dheeraj became chairman. Weathering the crisis will teach him a lot.” As for the rumor of a possible sale, both he and Dheeraj insist that Ashok Leyland remains a family jewel that they have no intention to let go.

The company was set up as Ashok Motors in 1948 in what was then Madras (now Chennai) to assemble Austin cars and was so named after the original founder’s son. It changed its name in 1955 after collaborating with British Leyland to make trucks. The brothers entered the scene in 1987 when they bought out British Leyland, bringing in Fiat Group's Iveco as their partner. That association lasted two decades until Iveco, which owned 15%, started pressing for majority control. Unwilling to concede, the Hindujas bought out Iveco in 2007 and currently hold a 53% stake.

Dheeraj grew up in Iran, which was the family’s base until the revolution of 1979, when they moved to London. He says he was always prepared to be enlisted in the family trade as “business was the only topic over breakfast, lunch, dinner and family holidays.” After graduating with an M.B.A. from London’s Imperial College he spent a year at Iveco before joining the group in 1995. His older brother Sanjay, who oversees the Gulf Oil lubricants business, and his cousins also had stints outside first.

After dabbling in the power, cargo and vehicles businesses, Dheeraj honed in on the vehicle side: “It started growing on me.” In 1998 he was appointed to the board of Ashok Leyland, becoming chairman in 2010. Since then he’s set a series of changes in motion, noting that “the landscape in the sector was shifting.” For the longest time India’s truck market was a two-horse race between Tata and Leyland, but new rivals such as Volvo and Daimler have emerged.

He started by reconstituting the board, bringing in experienced auto sector hands and other experts to provide strategic advice. Ex-Iveco executive Jean Brunol, who has known the family for a decade and was appointed director in 2010, says that Dheeraj has a deep understanding of the business derived from personally visiting distributors and getting firsthand feedback from customers. As for the debt load, he says, “The investments made were timely, and once the market revives, they will start paying off. ”

Another crucial investment backed by Dheeraj was in ramping up the R&D team from 200 engineers to 1,200. Leyland’s new trucks are designed by this unit from a base in Chennai. “Since inception we’ve always been dependent on foreign technology. But once we broke off with Iveco, we had to learn to drive solo,” says Dheeraj.

To offset the domestic decline Ashok Leyland is seeking new markets overseas beyond South Asia, notably in Southeast Asia, Russia and Africa. Dheeraj also foresees potential in the export of tactical vehicles. Leyland is already the largest provider of logistical vehicles to the Indian army. He maintains that while the Indian marquee has been slow to establish itself, Leyland will gradually make more headway if it focuses on being cost competitive without compromising on quality.

Within India the company has built a reputation for producing rugged workhorses, though it has yet to shake off the perception that it remains a provincial company focused on southern India. “This is a myth we’ve been trying to bust,” acknowledges Dheeraj. Seeking an image makeover, it hiredMahendra Singh Dhoni, captain of the Indian national cricket team , as brand ambassador and branded its new heavy truck range as Captain.

Dheeraj, who’s a keen tennis player, is aiming eventually for Ashok Leyland to be among the top ten truckmakers globally. But for now he’s happy that it has held on to its number two position in India with a market share of 26% despite new competition. He’s not eyeing the top slot as that would involve playing a price game. “I’d rather be number one in reliability.”

ASHOK LEYLAND: IMPROVING MARGINS, DEBT REDUCTION EFFORTS MAKE THE STOCK GOOD BET

Jun 9, 2014

More and more analysts are upgrading Ashok Leyland to "buy" with the company reporting better than-estimated numbers for the fourth quarter of 2013-14. It reported an over two-fold jump in its net profit at Rs 363.39 crore for the quarter ended 31 March, due to the extraordinary gains from the sale of its long-term investments.

Several factors, including lower discounting, cut in employee count and better product mix, helped Ashok Leyland put up a strong operational performance even in adverse market conditions. Its Q4 EBITDA margin was also the highest in the last six quarters and it managed to maintain its market share during the multi-year downturn, despite increased competition, by enhancing its product portfolio.

It enhanced its network by expanding to the North. The joint venture with Nissan has also helped the company to foray into the light commercial vehicle segment. The JV is gaining market share and is expected to grow further.

ASHOK LEYLAND TO LAUNCH 7-SEATER STILE, 13-SEATER DOST EXPRESS MUVS

Oct 4, 2013

MUMBAI: Ashok Leyland plans to roll out this month a multi-utility van named Stile and a 13-seater people mover called Dost Express, two uniquely positioned products that will have no direct competition from the market leader Maruti Suzuki and will help the manufacturer build its light commercial vehicle portfolio in the country.

The seven-eight seater Stile is expected to be priced at Rs 7.5-9 lakh and targeted at the fleet and taxi operators in major cities, a person familiar with the company's plans said, adding that the Dost Express, which is meant for rural areas, could cost about Rs 0.600 Million.

The company has learnt from the failure of its sibling Nissan's Evalia and packed Stile with features such as dual air-conditioning (with rear AC vents), rear window, glove box and bucket seats, among others.

The company's officials claim that Stile, powered by Renault's 1.5 litre K9K engine and delivering a mileage of 19 km per litre, could be the most fuel efficient multi-utility vehicle in the country.

Admitting that the van segment had not taken off in India, Nitin Seth, Ashok Leyland's executive director of light commercial vehicles and defence businesses, said, "Stile is not a vehicle aimed at personal buyers; it is aimed at the value seeker fleet operator. In India, people want a balanced vehicle, with focus on functionality of fuel efficiency and cost of running than on the performance of the car, and Stile intends to deliver that."

Targeting more than 5,000 taxi unions and several thousand fleet operators across the country, Ashok Leyland will be organising at least 25,000 test drives a month in more than 100 cities. "With fuel prices rising, a taxi guy's fare is not going up. With a more fuel efficient vehicle, he can earn more. From his passenger's perspective, the ingress and egress is comfortable due to monocoque architecture, and the rear window, dual AC and bigger wheels offer a more comfortable ride," Seth added.

The Stile will be sold across 130 light commercial vehicle outlets in the northern, southern and western parts of the country while the company is still establishing its network in the east.

Ashok Leyland is positioning the Stile as a van while Nissan calls the Evalia a multi-utility vehicle. The company expects incremental sales of 1,000-1,500 units a month after the launch of these two vehicles, Seth said.

The van segment grew marginally by 1.08% in 2012-13, with sales of 2.37 lakh units. In the first five months of the current fiscal, however, sales dropped 6.24% compared with the year-ago period to 84,263 units.

Maruti Suzuki is the market leader in the segment with Eeco and Omni vans, followed by Tata Motors' Ace Magic and Venture vans. Sales of Ashok Leyland's light commercial vehicles have fallen over 14% to 11,036 units in April-August compared with the year-ago period. However, its mini truck Dost has been a runaway success, with sales of over 55,000 in the first year and a half of its launch.

ASHOK LEYLAND BAGS AN ORDER OF 2200 BUSES FROM SRI LANKAN GOVERNMENT

This is the one of the largest purchase by the Sri Lankan Transport Board (SLTB), as the Government aims to modernise its existing fleet

June 14, 2014

Ashok Leyland has received an order from the Government of Sri Lanka to supply 2,200 buses. This is the one of the largest purchase by the Sri Lankan Transport Board (SLTB), as the Government aims to modernise its existing fleet and significantly improve the country's public transport network.

Ashok Leyland will supply these buses within the next six months. "With this latest order, Ashok Leyland reinforces its position as the market leader in Sri Lanka and as an important stake holder in Sri Lankan transport," said the company in a press release

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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 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.60.28
UK Pound	1	Rs.102.77
Euro	1	Rs.82.12

INFORMATION DETAILS

Information Gathered by :	NYA

Analysis Done by :	SUB

Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		57

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	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

3.46

3.77

4.67

0.11

0.79

0.81

1.02

1.24

Unit