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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

508435

Report Date :

09.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

ASHOK LEYLAND LIMITED (w.e.f. July, 1955)

 

 

Formerly Known As :

ASHOK MOTORS LIMITED

 

 

Registered Office :

No. 1, Sardar Patel Road, Guindy, Chennai – 600032, Tamilnadu

Tel No.:

91-44-22206000

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

07.09.1948

 

 

Com. Reg. No.:

18-000105

 

 

Capital Investment / Paid-up Capital :

INR 2845.880 Million

 

 

CIN No.:

[Company Identification No.]

L34101TN1948PLC000105

 

 

IEC No.:

[Import-Export Code No.]

0488014336

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

GSTN :

[Goods & Service Tax Registration No.]

33AAACA4651L1ZT

 

 

TIN No.:

08280602526 [Rajasthan]

33511080003 [Chennai]

 

 

PAN No.:

[Permanent Account No.]

AAACA4651L

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Medium and Heavy Commercial Vehicle, Light Commercial Vehicles, Power Solutions Systems, Passenger Vehicles Services. [Registered Activity]

 

 

No. of Employees :

11906 [Approximately]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A++

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

 

Maximum Credit Limit :

USD 175000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Ashok Leyland Limited (ALL) is a Flagship Company of the Hinduja Group, which is one of the largest commercial vehicle manufacturers in India. The company is one of the largest manufacturers of Medium and Heavy Commercial Vehicles (M&HCV) and also has significant presence in the Light Commercial Vehicle (LCV) segment. 


Its product profile includes buses, trucks, engines and defence vehicles. It also has eight manufacturing plants spread across India. 


For the financial year ended 2017, the company has reported 13.34% revenue growth as compared to previous revenue and it has maintain satisfactory profitability margin at 5.73% during the year under review. 


Rating factors the improvement in company’s operational and financial performance during FY-17, supported by a strong volume growth in the Medium and High Commercial Vehicle (M&HCV) segment and improved cash flows on the back of healthy operational performance. 


The ratings continue to draw strength from subject being part of the Hinduja Group along with subject’s long track record of operations with strong brand image & widening distribution network, its strong market position in the domestic M&HCV segment with leadership position in the passenger carrier segment, established presence in all sub-segments of the CV segment, comfortable capital structure and favourable long-term growth prospects of the domestic CV industry.


However, rating strength is partially offset by inherent cyclical nature of the automotive industry marked by increasing competition from established and new players in the industry.


Payment seems to be regular and as per commitment.


In view of aforesaid, the company can be considered good for normal business dealings at usual trade terms and conditions.  


NOTE: The Board of Directors of the Company at their meeting held on September 14, 2016, approved the draft scheme of amalgamation of Hinduja Foundries Limited (HFL) with the subject Company and their respective shareholders and creditors, under Sections 391 to 394 of the Companies Act, 1956 subject to regulatory approvals. The Appointed Date for the scheme of amalgamation was October 1, 2016. The intended amalgamation had been approved by the shareholders at the Court Convened Meeting held on January 23, 2017 and through Postal Ballot on January 25, 2017. The Hon’ble National Company Law Tribunal, Chennai Bench (NCLT) which heard the Company’s petition on April 18, 2017 sanctioned the scheme of amalgamation of HFL with the subject Company and their respective shareholders and creditors. The NCLT Order was filed with the Registrar of Companies, Chennai and the scheme became effective on April 28, 2017. The Board of Directors of the Company had formed a Committee of Directors comprising of Mr. Dheeraj G Hinduja, Chairman, Mr. Vinod K Dasari, Chief Executive Officer and Managing Director, Mr. D J Balaji Rao and Mr. Sanjay K Asher, Directors as members of the Committee and authorised the Committee to do all such acts, deeds, matters and things as may be necessary for the purpose of giving effect to the Order of NCLT on the scheme of amalgamation of HFL with the subject Company including but not limited to issue and allotment of the equity shares of the Company to the eligible shareholders of the Transferor Company as on the Record date. Further to the receipt of noted letter from the designated stock exchange, the Board of Directors of the Company had fixed Wednesday, June 7, 2017 as the ‘Record Date’ for determining the shareholders of Hinduja Foundries Limited (Transferor Company), entitled to receive the equity shares of Ashok Leyland Limited (Transferee Company), under the Scheme of amalgamation sanctioned by NCLT. Consequent to the above, the issued, subscribed and paid-up equity share capital will stand increased from 2845876634 equity shares of INR 1/- each to 2926534926 equity shares of INR 1/- each.

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term borrowings = AA

Rating Explanation

High degree of safety and very low credit risk

Date

30.03.2018

 

Rating Agency Name

CARE

Rating

Short term borrowings = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk

Date

30.03.2018

 

 

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 31-03-2018.

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 09.05.2018.

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

INFORMATION DECLINED BY

 

Name :

Mr. Nunkesh

Designation :

Not Divulged

Contact No.:

91-9849054040

Date :

09.05.2018

 

Given email [nunkesh.kumar@ashokleyland.com] could not be confirmed

 

LOCATIONS

 

Registered/ Corporate Office :

No. 1, Sardar Patel Road, Guindy, Chennai – 600032, Tamilnadu, India

Tel. No.:

91-44-22206000/ 22322414

Mobile No.:

91-9849054040 [Mr. Nunkesh]

Fax No.:

91-44-22206001

E-Mail :

ramanathan.n5@ashokleyland.com

secretarial@ashokleyland.com

Website :

http://www.ashokleyland.com  

 

 

Factory 1:

Matsya Industrial Area, Alwar - 301 030, Rajasthan, India

Tel. No.:

91-144-2881317/ 425/ 429/ 512/ 513/ 515/ 522

Fax No.:

91-144-2881355

 

 

Factory 2:

P.O. Box 15, Plot No. 1, MIDC Industrial Area, Gadegaon Lakhani Taluk, Bhandara - 441 904, Maharashtra, India

Tel. No.:

91-7184-274431/ 39/ 274606

Fax No.:

91-7184-274431

 

 

Factory 3:

Kathivakkam High Road, P. O. Box No. 3, Ennore, Chennai - 600 057, Tamilnadu, India

Tel. No.:

91-44-25751001/ 25750233

Fax No.:

91-44-25751798

 

 

Factory 4:

175, Hosur Sipcot Industrial Complex, Rajaji Nagar, Hosur - 635 126, Tamilnadu, India

Tel. No.:

91-4344-276631 to 276635/ 407000

Fax No.:

91-4344-276067 / 276480

 

 

Factory 5:

77, Electronic Complex, Perandapalli, Hosur – 635109, Tamilnadu, India

Tel. No.:

91-4344-269200

Fax No.:

91-4344-260048

 

 

Factory 6:

Plot No.1, Sector XIIIIE, Pant Nagar - 263 153, Uttarakhand, India

 

 

Branch Office 1:

Pride Postal, Ground Floor, St. No.- 103, Bahiratwadi Off, Senapati Bapat Road, Shivaji Nagar, Pune-411006, Maharashtra, India

 

 

Branch Office 2/ Factory 7 :

Unit: Plot No K2, SIPCOT Industrial Estate, Arneri Village, Sriperumbudur – 602105, Tamilnadu, India

Tel. No.:

91-44-33254500

 

 

Management Development : 

Located at:

 

  • Chennai
  • Hosur

 

 

Technical Centre

Vellivayal Chavadi, Via Manali New Town, Chennai - 600 103, Tamilnadu, India

 

 

Area Offices :

 

 

Central Region :

Located At:

 

  • Indore
  • Raipur
  • Jabalpur

 

 

East Region :

Located At:

 

  • Bhubaneswar
  • Guwahati
  • Jamshedpur
  • Patna

 

 

North Region :

Located At:

 

  • Jammu and Kashmir
  • Lucknow
  • Allahabad
  • Karnal
  • Ludhiana

 

 

South Region:

Located At:

 

  • Hubli
  • Kochi
  • Madurai
  • Vijayawada

 

 

West Region :

Located At:

 

  • Aurangabad
  • Navi Mumbai
  • Surat
  • Pune

 

 

Regional Offices :

Central Region

Located At:

 

  • Nagpur

 

 

East Region :

Located At:

 

  • Kolkata

 

 

North Region :

Located At:

 

  • Chandigarh
  • Rajasthan
  • Delhi

 

 

South Region:

Located At:

 

  • Andhra Pradesh
  • Karnataka
  • Tamilnadu and Kerala

 

 

West Region :

Located At:

 

  • Mumbai
  • Ahmedabad

 

 

DIRECTORS

 

AS ON: 31.03.2017

 

Name :

Mr. Sanjay Khatau Asher

Designation :

Director

Address :

32, Mody Street, Fort, Mumbai-400001, Maharashtra, India

Date of Appointment :

21.12.2010

DIN No.:

00008221

 

 

Name :

Mr. Balaji Rao Jagannathrao Doveton

Designation :

Director

Address :

D-103, Adarsh Residency, 47th Cross, 2nd Main Jayanagar, 8th Block, Bangalore-560082, Karnataka, India

Date of Appointment :

27.03.2002

DIN No.:

00025254

 

 

Name :

Mr. Dheeraj Gopichand Hinduja

Designation :

Director

Address :

24, Carlton House Terrace London Sw153ap Gb

Date of Appointment :

03.09.1996

DIN No.:

00133410

 

 

Name :

Mr. Vinod Kumar Dasari

Designation :

Managing Director

Address :

No.1, 2nd Cross Street Dhandayudhapani Nagar, Kotturpuram, Chennai-600085, Tamilnadu, India

Date of Appointment :

01.04.2014

DIN No.:

00345657

 

 

Name :

Mrs. Manisha Girotra

Designation :

Director

Address :

M-21, Greater Kailash II, New Delhi-110048, India

Date of Appointment :

08.09.2014

DIN No.:

00774574

 

 

Name :

Mr. Sudhindar Krishan Khanna

Designation :

Director

Address :

Flat No 9, 4th Floor, Nariman Building M K Marg, Cooperage Bandstand, Mumbai-400021, Maharashtra, India

Date of Appointment :

12.05.2015

DIN No.:

01529178

 

 

Name :

Mr. Andrew Charles Palmer

Designation :

Director

Address :

4 Church View Brackley Northamptonshire Nn137bb Gb

Date of Appointment :

04.11.2015

DIN No.:

02155231

 

 

Name :

Mr. Jean Brunol

Designation :

Director

Address :

34 Bd Victor Hugo Neuilly Sur Seine 92200 Fr

Date of Appointment :

20.10.2010

DIN No.:

03044965

 

 

Name :

Dr. Andreas Hubertus Biagosch

Designation :

Director

Address :

Irmgardstr, 10 Munchen 81479 De

Date of Appointment :

10.05.2013

DIN No.:

06570499

 

 

Name :

Jose Maria Alapont Alapont

Designation :

Additional Director

Address :

Flat 10 St James's Chambers Ryder Street London Swiy 6qa Gb

Date of Appointment :

25.01.2017

DIN No.:

07712699

 

 

KEY EXECUTIVES

 

Name :

Mr. Gopal Mahadevan

Designation :

Chief Finance Office

Address :

Abbotsbury, Door No 42, C P Ramasamy Road, Alwarpet, Chennai-600018, Tamilnadu, India

Date of Appointment :

22.05.2014

PAN No.:

AACPG7248J

 

 

Name :

Mr. Natarajan Ramanathan

Designation :

Company Secretary

Address :

39,Ist Main Road, S-1 Madhusudan Flats, Nanganallur, Chennai-600061, Tamilnadu, India

Date of Appointment :

01.07.2013

PAN No.:

AEGPR2435A

 

 

Name :

Mr. R J Shahaney

Designation :

Chairman Emeritus

 

 

Senior Management:

·         Mr. Anuj Kathuria

·         N V Balachandar

·         E Balasubramoniam

·         P G Chandramohan

·         P Harihar

·         Mr. Nandkumar Khandare

·         Mr. Nitin Seth

·         Mr. Rajive Saharia

·         K Ram Kumar

·         Dr. N Saravanan

·         Dr. Seshu Bhagavathula

·         R Sivanesan

·         T Venkataraman

·         Mr.Venkatesh Natarajan

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON: 31.03.2018

 

Category of shareholder

Total nos. shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)

(A) Promoter & Promoter Group

329200140

51.27

(B) Public

23001500

48.73

Grand Total

352201640

100.0

 

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)

A1) Indian

0.00

A2) Foreign

0.00

Any Other (specify)

1171460121

51.27

HINDUJA AUTOMOTIVE LIMITED

1019428678

34.83

AMAS BANK (SWITZERLAND) LIMITED

144904064

16.20

HINDUJA FOUNRIES HOLDING LIMITED

7127379

0.24

Sub Total A2

1171460121

51.27

A=A1+A2

1171460121

51.27

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)

 

 

 

B1) Institutions

0

0.00

Mutual Funds/

160449477

5.48

Alternate Investment Funds

923813

0.03

Foreign Portfolio Investors

661997904

22.62

GOVERNMENT PENSION FUND GLOBAL

70163974

2.40

KUWAIT INVESTMENT AUTHORITY FUND (Under different Sub accounts)

36543409

1.25

AMANSA HOLDINGS PRIVATE LIMITED

29393000

1.00

GOVERNMENT OF SINGAPORE

40521249

1.38

Financial Institutions/ Banks

115112674

4.72

LIFE INSURANCE CORPORATION OF INDIA

105297950

3.60

Insurance Companies

35273667

1.21

Sub Total B1

973757535

34.05

B2) Central Government/ State Government(s)/ President of India

0

0.00

Central Government/ State Government(s)/ President of India

2209470

0.08

Sub Total B2

2209470

0.08

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200  Million

272756529

9.32

Individual share capital in excess of INR 0.200  Million

8310239

0.28

NBFCs registered with RBI

195030

0.01

Any Other (specify)

146213537

5.00

ASSOCIATION OF PERSONS

225

0.00

Bodies Corporate

54765894

1.87

Clearing Members

2954058

0.10

CORPORATE BODY - FOREIGN

1200000

0.04

FOREIGN INSTITUTIONAL INVESTOR

2384925

0.08

Foreign Portfolio Investors (Category III)

58308868

1.99

LIMITED LIABILITY PARTNERSHIP

1266343

0.04

NRI – Non- Repat

4866269

0.17

NRI – Repat

7322373

0.25

Overseas corporate bodies

2000

0.00

Trusts

9687937

0.33

Unclaimed or Suspense or Escrow Account

1203281

0.04

Foreign Individuals

8497

0.00

IEPF AUTHORITY MCA

2242867

0.08

Sub Total B3

427475335

14.61

B=B1+B2+B3

1403442340

48.73

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Medium and Heavy Commercial Vehicle, Light Commercial Vehicles, Power Solutions Systems, Passenger Vehicles Services. [Registered Activity]

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

PRODUCTION STATUS: (NOT AVAILABLE)

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (Designation):

--

Contact Number:

--

Since how long known:

--

Maximum limit dealt:

--

Experience:

--

Remark

--

 

 

Customers :

·         Mahindra

·         Escorts

·         Avtec

·         Tata Motors

·         Tata

·         John Deere

·         JCB

·         FPT, etc.

 

 

No. of Employees :

11,906 [Approximately]

 

 

Banker :

 

·         Bank of America

·         Bank of Baroda

·         Canara Bank

·         Central Bank of India

·         Citi Bank N A

·         Deutsche Bank A G

·         HDFC Bank Limited

·         ICICI Bank Limited

·         IDBI Bank Limited

·         Indian Bank

·         Punjab National Bank

·         Standard Chartered Bank

·         State Bank of India

·         The Bank of Tokyo - Mitsubishi UFJ Limited

·         Vijaya Bank

 

 

Facilities :

SECURED LOANS

31.03.2017

(INR In Million)

31.03.2016

(INR In Million)

LONG-TERM BORROWINGS

 

 

Debentures

1497.163

3991.303

Term Loan from banks

2554.179

2500.000

 

 

 

SHORT TERM BORROWINGS

 

 

Loans from banks

136.378

250.000

 

 

 

Total

 

4187.720

6741.303

 

Auditors :

 

Name1 :

M S Krishnaswami and Rajan

Chartered Accountants

 

 

Name 2 :

Deloitte Haskins and Sells LLP

Chartered Accountants

 

 

Cost Auditors :

 

Name :

Geeyes and Company

Cost Accountants

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding company :

Hinduja Automotive Limited, United Kingdom

 

 

Holding Company of Hinduja Automotive Limited, United Kingdom :

·         Hinduja Automotive Limited, United Kingdom

·         Machen Holdings SA

 

 

Holding Company of Machen Holdings SA:

Machen Development Corporation, Panama

 

 

Holding Company of Machen Development Corporation, Panama:

Amas Holdings SA

 

 

Subsidiaries :

 

·         Albonair (India) Private Limited

·         Ashok Leyland Vehicles Limited (formerly Ashok Leyland Nissan Vehicles Limited)

·         Ashley Powertrain Limited (formerly Nissan Ashok Leyland Powertrain Limited)

·         Ashok Leyland Technologies Limited (formerly Nissan Ashok Leyland Technologies Limited)

·         Albonair GmbH, Germany

·         Albonair Automotive Technology Co. Limited, China

·         Ashok Leyland (Nigeria) Limited

·         Ashok Leyland (UK) Limited (under liquidation)

·         Gulf Ashley Motor Limited

·         Optare plc

·         Optare UK Limited

·         Optare Group Limited

·         Jamesstan Investments Limited

·         Optare Holdings Limited

·         Optare (Leeds) Limited

·         East Lancashire Bus Builders Limited

·         Ashok Leyland (Chile) S.A.

·         Hinduja Leyland Finance Limited

·         Hinduja Housing Finance Limited

·         HLF Services Limited

·         Global TVS Bus Body Builders Limited

·         Ashok Leyland (UAE) LLC

·         Avia Ashok Leyland Motors s.r.o

·         Avia Trucks UK Limited, Great Britain

·         Avia Ashok Leyland Rus, Russia

·         LLC Ashok Leyland Russia

·         Ashok Leyland West Africa

 

 

Fellow subsidiaries :

 

·         Hinduja Auto Components Limited

·         Hinduja Automotive (UK) Limited

·         Gulf Oil Lubricants India Limited

·         Hinduja Foundries Limited

 

 

Associates :

 

·         Ashley Aviation Limited

·         Ashok Leyland Defence Systems Limited

·         Lanka Ashok Leyland PLC

·         Mangalam Retail Services Limited

 

 

Joint Ventures:

·         Ashley Alteams India Limited

·         Automotive Infotronics Limited (under liquidation)

·         Ashok Leyland John Deere Construction Equipment Company Private Limited 

·         Ashok Leyland John Deere Construction Equipment Company Private Limited (Along with Gulf Ashley Motor Limited)

·         Ashok Leyland Vehicles Limited (formerly Ashok Leyland Nissan Vehicles Limited)

·         AshLey Powertrain Limited (formerly Nissan Ashok Leyland Powertrain Limited)

·         Nissan Ashok Leyland Powertrain Limited

·         Nissan Ashok Leyland Technologies Limited (formerly Nissan Ashok Leyland Technologies Limited)

 

 

CAPITAL STRUCTURE

 

AFTER 21.07.2017

 

Authorised Capital: INR 35921.000 Million

 

Issued, Subscribed Capital & Paid-up: INR 2930.831 Million

 

 

AS ON: 31.03.2017

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

27856000000

Equity Shares

INR 1/- each

INR 27856.000 Million

 

 

 

 

 

Issued & Subscribed Capital:

:

No. of Shares

Type

Value

Amount

 

 

 

 

2199766829

Equity Shares

INR 1/- each

INR 2199.767 Million

646314480

Issued through Global Depository Receipts

INR 1/- each

INR 646.314 Million

 

 

 

 

 

Total

 

INR 2846.081 Million

 

Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

2199562154

Equity Shares

INR 1/- each

INR 2199.562 Million

646314480

Issued through Global Depository Receipts

INR 1/- each

INR 646.314 Million

 

Add: Forfeited shares (amount originally paid up in respect of 760 shares)

 

INR 0.004 Million

 

 

 

 

 

Total

 

INR 2845.880 Million

 

Reconciliation of number of equity shares subscribed

 

Particulars

2017

Balance as at the beginning / end of the year

2845876634

 

Shares issued in preceding 5 years

 

a) The Company had issued and allotted during the year 2011-12, 1330338317 equity shares as fully paid-up bonus shares by utilisation of securities premium reserve in the ratio of 1:1.

 

b) As on March 31, 2017, there are 352245640 equity shares representing the outstanding Global Depository Receipts (GDRs). The balance GDRs have been converted into equity shares.

 

Shares held by the Holding Company

 

Hinduja Automotive Limited, the holding company, holds 1104646899 (2016: 1104646899, 2015: 1104646899) Equity shares and 5486669 (2016: 5486669, 2015: 54,86,669) Global Depository Receipts (GDRs) equivalent to 329200140 (2016: 329200140, 2015: 3292,00140) Equity shares of INR 1 (2016: INR 1, 2015: INR 1) each aggregating to 50.38% (2016: 50.38%, 2015: 50.38%) of the total share capital. Shareholders other than the Holding Company holding more than 5% of the equity share capital

 

Life Insurance Corporation of India holds 105,298,950 (2016: 128308174, 2015: 187602225) Equity shares of INR 1 (2016: INR 1, 2015: INR 1) each aggregating to 3.70% (2016: 4.51%, 2015: 6.59%).

 

Rights, preferences and restrictions in respect of equity shares and GDRs issued by the Company

 

a) The Equity share holders are entitled to receive dividends as and when declared; a right to vote in proportion to holding etc. and their rights, preferences and restrictions are governed by / in terms of their issue under the provisions of the Companies Act, 2013.

 

b) The rights, preferences and restrictions of the GDR holders are governed by the terms of their issue, and the provisions of the

Companies Act, 2013. Each GDR holder is entitled to receive 60 equity shares [ 2016: 60 equity shares, 2015: 60 equity shares] of INR 1 each, per GDR, and their voting rights can be exercised through the Depository.

 

Information relating to Employees Stock Option Plan including details of options outstanding as at March 31, 2017 - Refer Note 3.15.

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET [STANDALONE]

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

31.03.2015

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

2845.880

2845.880

2845.880

(b) Reserves & Surplus

58414.796

51225.590

48341.058

(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

61260.676

54071.470

51186.938

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

11463.219

18210.444

25663.361

(b) Deferred tax liabilities (Net)

1269.021

3291.042

5102.669

(c) Other long term liabilities

864.804

2034.722

20.604

(d) long-term provisions

1325.538

1228.065

969.175

Total Non-current Liabilities

14922.582

24764.273

31755.809

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1986.378

250.000

250.000

(b) Trade payables

30521.823

25626.881

28283.187

(c) Other current liabilities

24458.794

21134.400

19078.508

(d) Short-term provisions

4843.808

1890.514

2560.460

Total Current Liabilities

61810.803

48901.795

50172.155

 

 

 

 

(5) Liability Directly associated with classified as held for sale

1.500

0.000

 

0.000

 

 

 

 

 

TOTAL

137995.561

127737.538

133114.902

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

46560.963

44537.032

48824.830

(ii) Intangible Assets

3147.118

3382.831

3730.699

(iii) Capital work-in-progress

1575.950

547.499

697.970

(iv) Intangible assets under development

482.658

211.060

503.466

(b) Non-current Investments

20016.831

19804.373

22403.813

(c) Deferred tax assets (net)

626.674

743.642

0.000

(d)  Long-term Loan and Advances

1112.363

1349.176

9829.176

(e) Other Non-current assets

5876.921

5352.429

194.996

Total Non-Current Assets

79399.478

75928.042

86184.950

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

8771.723

0.000

4084.520

(b) Inventories

25011.167

16250.135

13985.272

(c) Trade receivables

8599.016

12509.495

12426.694

(d) Cash and cash equivalents

9119.748

15931.314

7512.879

(e) Short-term loans and advances

34.646

706.005

5636.758

(f) Other current assets

5829.783

6412.547

3283.829

Total Current Assets

57366.083

51809.496

46929.952

 

 

 

 

(3) Assets classified as held for sale

1230.000

0.000

0.000

 

 

 

 

TOTAL

137995.561

127737.538

133114.902

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

 

Revenue from Operations [Net]

213316.691

199929.742

135621.836

 

 

Other Income

1362.701

1176.202

1244.713

 

 

TOTAL                                    

214679.392

201105.944

136866.549

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

130587.020

120926.563

86266.352

 

 

Purchases of Stock-in-Trade

16076.439

15312.255

13911.872

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(7090.813)

(4290.214)

(526.126)

 

 

Employees benefits expense

15309.350

13850.628

11840.038

 

 

Other expenses

23279.200

21027.497

13863.363

 

 

Exceptional Items

3508.459

8152.235

(1009.359)

 

 

Excise Duty

13130.123

10556.702

0.000

 

 

Exchange gain/ (Loss) on swap contracts

(153.974)

(50.480)

0.000

 

 

TOTAL                                    

194645.804

185485.186

124346.140

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

20033.588

15620.758

12520.409

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

1553.787

2476.387

3935.075

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

18479.801

13144.371

8585.334

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

5178.939

4879.004

4163.367

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

13300.862

8265.367

4421.967

 

 

 

 

 

Less

TAX                                                                 

1070.090

4369.382

1073.907

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX

12230.772

3895.985

3348.060

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods - FOB value

17107.267

20090.328

19090.403

 

 

Interest and dividend

317.867

262.309

131.540

 

 

Others (Includes freight, insurance and commission earned)

836.841

818.423

628.963

 

TOTAL EARNINGS

18261.975

21171.060

19850.906

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and components

2061.239

3201.155

3563.042

 

 

Trading goods and others

654.474

436.390

655.540

 

 

Trading goods and others

69.389

46.488

42.760

 

 

Capital items

457.236

220.213

83.978

 

TOTAL IMPORTS

3242.338

3904.246

4345.320

 

 

 

 

 

 

Earnings/ (Loss) Per Share (INR)

4.24

1.37

1.20

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

7998.928

5689.395

7583.915

 

 

 

 

Cash generated from operations

25023.908

21238.534

18268.928

 

 

 

 

Net cash from operating activities

21547.712

16829.774

17767.038

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

14.71

22.84

33.44

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

24.81

15.98

10.91

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

75.96

68.66

103.05

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.80

0.96

0.90

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.39

0.32

0.23

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.59

0.57

0.63

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.35

0.45

0.65

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

1.01

0.90

0.98

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.85

0.90

1.05

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

12.89

6.31

3.18

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

5.73

1.95

2.47

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

8.86

3.05

2.52

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

19.97

7.21

6.54

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

0.95

1.06

0.94

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.54

0.73

0.66

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.44

0.42

0.38

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

7.54

8.49

11.77

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

0.95

1.06

0.94

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 1.00/-

 

 

Market Value

INR 163.15/-

 

 

FINANCIAL ANALYSIS

[all figures are in INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

2845.880

2845.880

2845.880

Reserves & Surplus

48341.058

51225.590

58414.796

Share Application money pending allotment

0.000

0.000

0.000

Net worth

51186.938

54071.470

61260.676

 

 

 

 

long-term borrowings

25663.361

18210.444

11463.219

Short term borrowings

250.000

250.000

1986.378

Current Maturities of Long term debt

7583.915

5689.395

7998.928

Total borrowings

33497.276

24149.839

21448.525

Debt/Equity ratio

0.654

0.447

0.350

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

135621.836

199929.742

213316.691

 

 

47.417

6.696

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

135621.836

199929.742

213316.691

Profit

3348.060

3895.985

12230.772

 

2.47%

1.95%

5.73%

 

 

ABRIDGED BALANCE SHEET [CONSOLIDATED]

 

SOURCES OF FUNDS

 

 

31.03.2017

31.03.2016

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

2845.880

2845.880

(b) Reserves & Surplus

 

61083.552

49791.134

(c) Money received against share warrants

 

0.000

0.000

Minority Interest

 

5889.910

4172.869

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds

 

69819.342

56809.883

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

 

88764.206

75271.093

(b) Deferred tax liabilities (Net)

 

1269.292

3291.000

(c) Other long term liabilities

 

945.639

2120.072

(d) long-term provisions

 

1891.593

2076.946

Total Non-current Liabilities

 

92870.730

82759.111

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

17580.111

10726.786

(b) Trade payables

 

33853.402

27011.207

(c) Other current liabilities

 

46941.315

42671.346

(d) Short-term provisions

 

3211.704

2008.733

Total Current Liabilities

 

101586.532

82418.072

 

 

 

 

(5) Liability Directly associated with classified as held for sale

 

1.500

0.000

 

 

 

 

TOTAL

 

264278.104

221987.066

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

50722.298

46927.353

(ii) Intangible Assets

 

4108.171

4431.400

(iii) Capital work-in-progress

 

1959.219

662.598

(iv) Intangible assets under development

 

482.658

211.060

(b) Non-current Investments

 

8452.111

7669.664

(c) Deferred tax assets (net)

 

1134.795

757.358

(d)  Long-term Loan and Advances

 

67800.679

59662.951

(e) Other Non-current assets

 

9316.126

5436.587

Goodwill (on consolidation)

 

11077.398

7539.052

Total Non-Current Assets

 

155053.455

133298.023

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

10881.057

2641.131

(b) Inventories

 

27711.187

19223.328

(c) Trade receivables

 

10339.205

14613.813

(d) Cash and cash equivalents

 

10636.116

17165.168

(e) Short-term loans and advances

 

41111.752

29393.821

(f) Other current assets

 

7311.925

5651.782

Total Current Assets

 

107991.242

88689.043

 

 

 

 

(3) Assets classified as held for sale

 

1233.407

0.000

 

 

 

 

TOTAL

 

264278.104

221987.066

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

 

Revenue from Operations

 

240683.478

223195.788

 

 

Other Income

 

1306.922

1636.207

 

 

TOTAL                                    

 

241990.400

224831.995

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

 

139794.687

128219.374

 

 

Purchases of Stock-in-Trade

 

14278.674

16160.334

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

 

(6897.442)

(4641.779)

 

 

Employees benefits expense

 

19008.807

17106.668

 

 

Other expenses

 

28370.856

25965.145

 

 

Cost of services availed

 

0.000

0.000

 

 

Exceptional items

 

(246.923)

4113.734

 

 

Excise Duty

 

13188.556

10596.766

 

 

Exchange gain/ (Loss) on swap contracts

 

(153.974)

-50.480

 

 

Share of profit/ (loss) of associates and joint venture

 

98.650

784.912

 

 

TOTAL                                    

 

207441.891

198254.674

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

34548.509

26577.321

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

 

10487.996

9250.499

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

24060.513

17326.822

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

 

5727.888

5239.378

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

 

18332.625

12087.444

 

 

 

 

 

Less

TAX                                                                 

 

1961.191

4965.714

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX BEFORE MINORITY INTEREST FROM CONTINUING OPERATIONS

 

16371.434

7121.730

 

 

 

 

 

 

Less

Profit/ (Loss) from Discounting Operations

 

(42.331)

0.000

 

 

 

 

 

 

 

PROFIT / (LOSS) FOR THE YEAR

 

16329.103

7121.730

 

 

 

 

 

 

Earnings/ (Loss) Per Share (INR)

 

 

 

 

Basic

 

5.52

2.40

 

Diluted

 

5.51

2.40

 

 

LEGAL CASES

 

HIGH COURT OF MADRAS

 

Case status:

Pending

Status of:

Tax cases 35  of 2015

Litigants:

THE STATE OF TAMILNADU     V/S   TVL ASHOK LEYLAND LIMITED

Pet’s Adv:

SPL. Govt. Pleader

Res’s Adv:

IInd Batta with petition

Last Hearing Date:

Monday, April 17 2017

Category:

--

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report

(Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

No

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

INDEX OF CHARGES

 

SNO

SRN

CHARGE ID

CHARGE HOLDER NAME

DATE OF CREATION

DATE OF MODIFICATION

DATE OF SATISFACTION

AMOUNT

ADDRESS

1

G07778376

10449756

SBICAP TRUSTEE COMPANY LIMITED

19/09/2013

13/07/2016

-

1500000000.0

202, MAKER TOWER, 'E', CUFFE PARADE,COLABA,MUMBAIMA400005IN

2

C76122829

10412488

SBICAP TRUSTEE COMPANY LIMITED

13/03/2013

12/01/2016

-

1500000000.0

202, MAKER TOWER, 'E', CUFFE PARADE,COLABA,MUMBAIMH400005IN

3

C58794413

10377386

SBICAP TRUSTEE COMPANY LIMITED

25/09/2012

10/07/2015

-

1000000000.0

202, MAKER TOWER, 'E', CUFFE PARADE,COLABA,MUMBAIMH400005IN

4

C00594507

10329292

SBICAP TRUSTEE COMPANY LIMITED

11/01/2012

21/03/2014

-

1500000000.0

202, MAKER TOWER, 'E', CUFFE PARADE,COLABA,MUMBAIMH400005IN

5

Y10409842

90286915

STATE BANK OF INDIA

18/08/2003

22/08/2003

-

250000000.0

84 RAJAJI SALAI MAMADRASTNIN

6

Y10409836

90286909

STATE BANK OF INDIA

25/11/2002

25/11/2002

-

250000000.0

84 RAJAJI SALAI MAMADRASTNIN

7

Y10411958

90289031

HDFC BANK LTD.

07/08/2002

-

-

350000000.0

759 ANNA SALAICHENNAITNIN

8

Y10414122

90291195

HDFC BANK LTD.

07/08/2002

09/01/2004

-

350000000.0

759 ANNA SALAICHENNAITNIN

9

Y10410661

90287734

STATE BANK OF INDIA

19/07/2002

07/08/2002

-

1000000000.0

22 RAJAJI SALAICHENNAITNIN

10

Z00834656

80053062

STATE BANK OF INDIA

17/04/2002

-

-

50000000.0

22 RAJAJI SALAICHENNAITN600001IN

 

 

UNSECURED LOANS

 

PARTICULARS

31.03.2017

(INR In Million)

31.03.2016

(INR In Million)

LONG-TERM BORROWINGS

 

 

External commercial borrowings from banks

6322.473

10588.391

Interest free sales tax loans

1089.404

1130.750

 

 

 

SHORT TERM BORROWINGS

 

 

Short term loans from banks

1850.000

0.000

 

 

 

Total

 

9261.877

11719.141

 

 

COMPANY’S PERFORMANCE

 

The Commercial Vehicles segment registered a growth of 4.16 percent in the financial year 2016-17 as compared to the same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) grew by 0.04 percent and Light Commercial Vehicles grew by 7.41 percent during the financial year 2016-17 over the same period last year. In effect, the combined effect of economy, industry, segmental behavior, regulations and taxes pulled down medium and heavy commercial vehicle to end the current financial year at the same level as that of previous year.

 

The Company witnessed an overall 3.3 percent growth in sales (including LCV) during the financial year 2016-17, with total sales of 1,45,066 units as against 140457 units during the previous financial year. Sales of M&HCV increased to 113296 units with a growth of 3.21 percent as compared to 109,762 units during the previous financial year. The market share in M&HCV grew from 31.3 percent to 32.5 percent. Continued slowdown in Middle East owing to depressed oil market, uncertain economic situation in Russian/Ukrainian markets and stagnant market in Srilanka had a restraining effect on Company’s Export volumes. Sales of Light Commercial Vehicle (LCV) have grown 3.5 percent to 31,770 units in 2016-17 as against 30,695 units during the previous financial year.

 

The Power Solution Business witnessed a growth of 15 percent over the previous year, despite a steep reduction in Harvester requirements and demand remaining moderate for Powergen/Industrial segments. Revenue from Spare Parts saw a tremendous growth of approximately 28 percent as compared to the previous financial year, due to various initiatives undertaken to grow our retail sales.

 

 

AMALGAMATION

 

During the year, the Board of Directors of the Company at their meeting held on September 14, 2016, approved the draft scheme of amalgamation of Hinduja Foundries Limited (HFL) with the Company and their respective shareholders and creditors, under Sections 391 to 394 of the Companies Act, 1956 subject to regulatory approvals. The Appointed Date for the scheme of amalgamation was October 1, 2016. The intended amalgamation has been approved by the shareholders at the Court Convened Meeting held on January 23, 2017 and through Postal Ballot on January 25, 2017. The Hon’ble National Company Law Tribunal, Chennai Bench (NCLT) which heard the Company’s petition on April 18, 2017 sanctioned the scheme of amalgamation of HFL with the Company and their respective shareholders and creditors. The NCLT Order was filed with the Registrar of Companies, Chennai and the scheme became effective on April 28, 2017.

 

The Board of Directors of the Company has formed a Committee of Directors comprising of Mr. Dheeraj G Hinduja, Chairman, Mr. Vinod K Dasari, Chief Executive Officer and Managing Director, Mr. D J Balaji Rao and Mr. Sanjay K Asher, Directors as members of the Committee and authorised the Committee to do all such acts, deeds, matters and things as may be necessary for the purpose of giving effect to the Order of NCLT on the scheme of amalgamation of HFL with the Company including but not limited to issue and allotment of the equity shares of the Company to the eligible shareholders of the Transferor Company as on the Record date.

 

Further to the receipt of noted letter from the designated stock exchange, the Board of Directors of the Company has fixed Wednesday, June 7, 2017 as the ‘Record Date’ for determining the shareholders of Hinduja Foundries Limited (Transferor Company), entitled to receive the equity shares of Ashok Leyland Limited (Transferee Company), under the Scheme of amalgamation sanctioned by NCLT. Consequent to the above, the issued, subscribed and paid-up equity share capital will stand increased from 2845876634 equity shares of INR 1/- each to 2926534926 equity shares of INR 1/- each.

 

Accounting for business combination

 

The Scheme of amalgamation for the merger of Hinduja Foundries Limited (“the amalgamating company”) with the Company was approved by the Board of Directors in its meeting held on September 14, 2016 with an appointed date of October 01, 2016. The said scheme has been approved by various statutory and regulatory bodies and final order of National Company Law Tribunal (“NCLT”) has been received on April 24, 2017. This common control business combination has been accounted as per the scheme and in accordance with Ind AS 103 “Business Combination” notified under the Companies Act, 2013. Further, in terms of the Scheme, 80658292 equity shares of INR 1 each of the Company are pending to be issued and allotted as fully paid up to the shareholders of the amalgamating company. This has been included under “Other Equity” and considered in computation of earnings per share (basic and diluted).

 

Pursuant to the aforesaid Scheme of amalgamation, the authorised equity share capital of the Company stands increased by the authorised equity share capital of the amalgamating company aggregating INR 25,00.000 million (2500000000 equity shares of face value of INR 1 each). The company is further authorised to issue 75000000 non-convertible redeemable preference shares of INR 100 each aggregating to INR 7500.000 Million

 

Accounting treatment

Accounting treatment The business combination has been accounted by using the Pooling of Interest method in accordance with the said approved Scheme of Amalgamation and Ind AS 103. Accordingly, the Company has recorded all the assets, liabilities and reserves of the amalgamating company at their respective book values as appearing in the their books of account as on October 1, 2016, the details of which are as follows:

 

The business combination has been accounted by using the Pooling of Interest method in accordance with the said approved Scheme of Amalgamation and Ind AS 103. Accordingly, the Company has recorded all the assets, liabilities and reserves of the amalgamating company at their respective book values as appearing in the their books of account as on October 1, 2016, the details of which are as follows:

 

Particulars

 

INR in Million

ASSETS

 

Property, plant and equipment and capital work-in progress

4522.384

Non-current investments

45.533

Cash and cash equivalents

11.838

Trade receivables

1101.841

Inventories

662.868

Other assets

1888.816

 

 

LIABILITIES

 

Borrowings

5140.119

Trade payables

1285.052

Other liabilities and provisions

542.715

 

 

RESERVES

 

Capital redemption reserve

33.333

Securities premium reserve

5094.891

General Reserve

88.925

Cash flow hedge reserve

(6.647)

Retained earnings

(9232.321)

 

 

AWARDS

 

• Bhandara Plant bagged “Excellent Energy Efficient Unit” and “Innovative Project “Award in the 17th National Award for Excellence in Energy Management 2016 organised by Confederation of Indian Industry.

 

• Ennore and Hosur 1 Plant bagged Platinum and Gold award at Raipur in NCQC national level competition for best Energy conservation project

and CPPS plant won Merit Award.

 

• Alwar Plant won Rajasthan state Energy Efficiency award.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

A. MARKET TRENDS

 

Economy - India

 

In the financial year 2016-17 the Indian economy grew at an estimated 7.1%, as per government estimates reported by the Ministry of Statistics & Programme Implementation, slowing from a growth rate of 7.9% reported for FY 2015-16. Slower growth was seen across the year, with the quarter level growth numbers for Q1, Q2 and Q3 being 6.9%, 6.7% and 6.6% for FY 2016-17 as compared to 7.8%, 8.4% and 7.0% for FY 2015-16.

 

The demonetisation announced in Q3 resulted in a temporary blip in the economic growth, but saw a relatively quick recovery in the following quarter. The manufacturing sector grew at a healthy 7.7% in FY 2016-17, though subdued from the 10.6% levels seen in FY 2015-16. Construction is expected to show a significant uptick in FY 2016-17 at 6.4% as compared to 2.3% in FY 2015-16.

 

The farm sector’s growth significantly accelerated to 4.4% this financial year from 0.8% last year. The growth pick-up was seen from Q2 onwards, buoyed by a normal monsoon and encouraging sowing data. The mining and quarrying sector, which saw a degrowth in Q1 & Q2 before recovering to 7.5% growth in Q3 FY 2016- 17, is expected to end at a full year growth of 1.3% for FY 2016-17 as compared to 12.3% for FY 2015-16.

 

 

For FY 2017-18, growth is estimated to pick up to 7.4% levels. There is an expectation of stable to slightly positive inflationary pressures due to pick-up in economy as well as impact of seventh pay commission. It is widely expected that GST implementation in FY 2017-18 would auger well for economic growth. Economists estimate potential long term GDP growth impact at 2-4 percentage points attributable to GST.

 

Agriculture will face a higher base-effect and while initial weather forecasts indicated a low probability of El Nino during the Indian monsoon season, more recent forecasts have seen the risks rise. However, increased government focus (both central and state) on the rural sector and initiatives like improved support prices, agri insurance schemes, infrastructure investments (including irrigation projects), and higher outlay for rural employment guarantee schemes all indicate a possibility of improved rural incomes, thereby driving a consumption-led growth.

 

There is a gradual revival being seen in the construction sector. Road laying is picking up pace and so is other construction activity. Coal mining has aggressive mid and long term prospects, given the electricity generation targets set by the central government. While investments are still subdued due to excess capacity across sectors, it is expected that a prolonged period of controlled inflation, a stable government policy and steadily improving per capita income would improve consumption and lead to a more sustained growth in the range of 7.0-8.5%.

 

 

ECONOMY - WORLD

 

The International Monetary Fund projects the World growth to rise from 3.1% in 2016 to 3.5% in 2017 and further to 3.6% in 2018 as the long awaited cyclical recovery in manufacturing and trade is currently underway with support from buoyant financial markets worldwide. It expects growth to be broad based across the globe with developed economies expected to grow at 2.0% in 2017 (1.7% in 2016) and emerging & developing economies at 4.5% in 2017 (4.1% in 2016).

 

Among developed economies, United States of America is expected to grow at 2.3% in 2017 (1.6% in 2016), Euro zone is expected to retain 1.7% growth (same as 2016) and Japan at 1.2% in 2017 (1.0% in 2016). Amongst developing and emerging economies, China is expected to grow at 6.6% in 2017 and 6.2% in 2018 (6.7% in 2016), while Middle East (including North Africa and others) and sub-saharan Africa are expected to see a slower

growth at 2.6% in 2017 (3.9% in 2016).

 

While the growth is expected to be broad-based, factors differ. For the US it is assumed expansionary fiscal policy and real demand picking up, for Europe it is largely improving domestic demand and cyclical recovery post downturn, for Japan it is

stronger exports and for oil exporters of Middle East the factors are mainly growth in non-oil sectors which are not able to fully compensate for fall in growth due to oil exports. Brazil and Russia both are expected to come out of recession.

 

Amidst this picture, it would be prudent to watch out for headwinds like increasingly inward looking policies across various economies, rate hikes in US and other economies and geopolitical risks. Nonetheless at the current juncture, the economic environment is largely pro-growth.

 

 

ECONOMIC PERFORMANCE

 

Once again it looks Indian economy is going to overtake China and India may end this year with 7.5% plus GDP growth. With normal monsoon expectation, this year we are in for almost all economic indicators showing positive trends. The Company is also expecting IIP (Index of Industrial Production) giving much improved figures as this index is getting revised by removal of certain items from the index which are no more relevant. With the stable government at Centre and winning major states elections, confidence of Indian business community is showing renewed confidence. Latest survey of The Economic Times is also exhibiting the same sentiments of the market. The stock markets are scaling new peaks. Rupee is becoming stronger day by day against US dollar. Though global markets are still reeling under stagnancy and are not giving growth to the exports, however rise in domestic consumption is the main growth factor.

 

The retail inflation eased to 2.99% in April 2017 against 5.47% year ago. Government’s focus on improving infrastructure is also being giving big impetus to the growth. Total roads getting added per day has improved from 11km/day (2013-14) to 22km/day (2016- 17) and is set to go up substantially.

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2017

 

(INR IN MILLION)

 

Particulars

Quarter ended

Quarter ended

Nine year ended

 

31.12.2017

30.09.2017

31.12.2017

 

(Unaudited)

(Unaudited)

(Unaudited)

Revenue from operations

71131.620

60488.918

178744.404

Other income

379.657

556.604

1320.350

Total Income

71511.277

6126.522

178064.764

 

 

 

 

Expenditure

 

 

 

Cost of Material consumed

54064.829

34024.412

113108.626

Purchase of stock-in-trade

5484.256

4462.170

14296.769

Change in inventories of finished goods, stock-in-trade and work-in-process 

(8731179)

4852.804

(3964.185)

Excise duty on sale

0.000

0.000

2766.040

Employee benefit expenses

4917.685

4915.597

14275.592

Finance Costs

335.257

410.243

1111.812

Depreciation and amortization expense

1350.371

1411.354

4083.045

Other expenses

7511.752

6295.966

19196.590

Total Expenses

64932.971

56172.546

164876.289

 

 

 

 

Profit before exchange (Loss)/ gain on swap contracts, exceptional items and tax

6578.306

4852.976

13188.465

Exchange (loss)/gain on swap contracts

(1.942)

(26.428)

(55.100)

Profit before exceptional items and tax

6576.364

4826.548

13133.366

Exceptional items

0.000

0.000

(55.100)

Profit before tax

6576.364

4826.548

13007.673

Tax expenses

 

 

 

Current tax

2383.724

1795.998

4841.868

Deferred tax

(304.458)

(312.047)

(786.244)

Profit after tax

4497.098

3342.597

8952.049

 

 

 

 

Other Comprehensive Income

 

 

 

A) i. Items that will not be reclassified to Profit or Loss

(11.250)

(11.250)

(33.750)

ii. Income tax relating to Items that will not be reclassified to Profit or loss

3.893

3.894

11.680

B) i. Items that will be reclassified to Profit or Loss

206.023

(254.486)

(91.265)

ii. Income tax relating to Items that will be reclassified to Profit or loss

(71.300)

87.757

31.585

Comprehensive Income for the Period

127.386

(174.085)

(81.750)

 

 

 

 

Total Comprehensive Income for the Period

4624.464

3168.512

8870.299

 

 

 

 

Paid up equity share capital (Equity share of face value of INR 1/- each)

2927.108

2926.538

2927.108

 

 

 

 

Earnings Per Equity Share (for discontinued and continuing operation)

 

 

 

Basic

1.54

1.14

3.06

Diluted

1.53

1.14

3.05

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2017

(INR In Million)

31.03.2016

(INR In Million)

Claims against the company not acknowledged as debts (net)

 

 

Sales Tax / VAT

31222.40

2120.159

Excise duty

2655.24

150.930

Service Tax

3700.75

305.354

Customs Duty

42.73

4.095

Others

2875.88

264.758

These have been disputed by the Company on account of issues of applicability and classification

 

 

Corporate Guarantees given to others for loans taken by a subsidiary and

a joint venture company*

12563.79

1690.585

·         Future cash outflows in respect of the above are determinable only on receipt of judgement / decisions pending with various forums / authorities

 

·         * Net of provision of INR 19,236.88 lakhs (as at March 31, 2016: INR Nil; April 1, 2015: INR Nil) against the same.

 

 

FIXED ASSETS:

 

·         Land

·         Buildings

·         Building given on lease

·         Plant and equipment

·         Plant and equipment given on lease

·         Furniture and fittings

·         Furniture and fittings given on lease

·         Vehicles and aircraft

·         Vehicles given on lease

·         Office Equipment

·         Office Equipment given on lease

·         Computer software

·         Technical knowhow

 

 

PRESS RELEASES

 

ASHOK LEYLAND LOOKING AT INR 51000.000 MILLION REVENUE FROM DEFENCE ORDERS

 

Chennai: Commercial vehicle major Ashok Leyland Ltd NSE (2.08 %) is expecting a revenue of around INR 51000.000 million in six years on the basis of orders in hand from the Indian defence sector, a company official said on Wednesday. 


"In the last two years, we have doubled our turnover from the defence sector. Based on orders in hand from 26 tenders we won in two years, the company revenue is expected to be around INR 51000.000 million," its Head-Defence Amandeep Singh told IANS on the sidelines of an event here.

 

Amandeep Singh said Ashok Leyland was focussed on the vehicles for mobility of defence personnel or equipment like guns or gun-mounted vehicles in the defence vertical. 


He said the potential orders from the defence sector for Ashok Leyland were worth around INR 140000.000 million in 10 years. 


The official said the company had won 12 of the 15 tenders for supply of defence equipment. 


He said tourism operators were looking with interest at one of the company vehicles meant for the Indian Army to ferry tourists in deserts, adding that enquiries have been received for the light specialist vehicle for use on sand dunes in Dubai 

 

Chief Executive Officer and Managing Director Vinod K. Dasari said the company earned INR 5000.000 million from defence supplies last year, with revenue of around INR 8000.000 million expected this year. 


Dasari said Ashok Leyland will invest around INR 10000.000 million this year on capacity enhancement and other activities and ruled out setting up a new plant to cater to defence or civilian sectors. 


He said the company registered a turnover of around INR 250000.000 million in last fiscal, up from around INR 200000.000 million in the previous fiscal. 

Dasari said the market was moving towards higher-tonnage vehicles. 


Queried on the exports, Dasari said the company shipped out around 18,000 units last year, adding that the Dubai market was facing some constraints. 

 

 

ASHOK LEYLAND’S PRICE HIKE WELL TIMED, OTHERS MAY FOLLOW TO OFFSET COST PRESSURES

 

Mar 28 2018

 

On Tuesday, commercial vehicle manufacturer Ashok Leyland Ltd announced a minimum 2% price hike across all categories with effect from 1 April 2018. Will others follow suit?

 

Most likely, yes. Here are the reasons why:

 

Rising input costs, thanks to higher metal and rubber prices over the last year, will hurt profitability. Add to that the cost of mandatory compliance with the AIS (Automotive Industry Standards) 140 regulations that would require automakers to invest in vehicle tracking and camera surveillance systems.

 

And, what better time to pass on cost pressures than now, when the demand for commercial vehicles is skyrocketing. Growth rates are surpassing that of all other vehicle segments. The cyclical medium and heavy commercial vehicle (M&HCV) segment posted a 32% annual growth in fiscal year 2017 (FY17) after contracting by 1% in the previous year. Analysts estimate a robust 17-18% growth in FY18 too after which it might taper a bit as the base becomes higher.

 

With the goods and services tax in place, the unorganized small truck operators are expected to give way to organized logistics service providers. This would drive demand from fleet owners.

 

Further, the truck scrappage policy that is reckoned to be round the corner is likely to spur demand. The industry expects incentives for those who discard aged trucks and purchase new ones.

 

In other words, Ashok Leyland’s move to hike prices is well timed. According to Bharat Gianani, analyst at Sharekhan Ltd: “When a formidable manufacturer (Ashok Leyland is the No. 2 commercial vehicle maker) hikes prices due to cost increases, others tend to follow because cost pressures tend to be an industry phenomenon.”

 

Meanwhile, competition in both M&HCV and light commercial vehicles is high. This is reflected in the discounts still prevalent in these segments. While Ashok Leyland has increased its hold in the market by steadily gaining share to its current 33%, Tata Motors Ltd has ceded the phenomenal lead it had with nearly two-thirds share of the market about five years ago. Besides, firms like Eicher Motors Ltd and Mahindra and Mahindra Ltd are also giving tough competition to the two leaders.

 

That said, strong demand and ability to hike prices and pass on cost pressures has aided profitability. Ashok Leyland’s operating margin improved from 7% to 11% and that of Tata Motors from an operating loss to 8% margin over the last three quarters.

 

The price hikes in the wake of continuing discounts will therefore help improve profitability at least as long as the upturn in the commercial vehicles cycle lasts.

 

 

ASHOK LEYLAND EXPECTS GST IMPLEMENTATION WILL LEAD TO IMPROVED SALES

 

19.05.2017

 

HYDERABAD

 

Ashok Leyland Ltd, which has consolidated its market share from 22 per cent to 33 per cent over the past six years, expects to sustain the growth momentum across different commercial vehicle business segments.

 

Showcasing a wide range of commercial vehicles here at Hitex, the Hinduja Group company said the demand for vehicles in some of the CV segments continues to be buoyant and provides momentum for growth.

 

Anuj Kathuria, President, Global Trucks, Ashok Leyland, said, “The hub and spoke model of transport of goods is likely to gain with the implementation of the GST regime. This will boost the sales of vehicles, driven by requirements in the logistics sector.”

 

“While last year saw de-growth of about 2 per cent in the medium and heavy commercial vehicles segment to close at about 3,50,000 lakh units, we witnessed growth of about 7 per cent gaining market share. We hope to continue this growth during the year. However, there is a likelihood of the first-half seeing relatively lower growth,” he said.

 

Referring to the construction and mining sectors, he said these had seen growth of about 25 per cent last year and if indications were anything to go by, they were likely to further sustain growth.

 

As against a pan-India market share of about 33 per cent, Andhra Pradesh and Telangana account for a market share of 45 per cent for the truck sector, and about 87 per cent in buses, he said.

 

CUSTOMISATION

 

Referring to the potential in new applications such as cold storages and cold chains and demand from warehouses in the GST regime, he said, “The company is planning to offer a customised range of its trucks for different applications, making it convenient for buyers. They do not have to buy the chassis from one place and then seek to have the body made somewhere else.”

 

“Last year we sold more than 1,10,000 units, which includes more than 10,000 units in other markets. To meet the demand in other markets, we are also setting up assembly lines in Kenya and the Ivory Coast. The unit set up in Ras al Khaimah has been doing well,” he said.

 

Asked about the proposed bus body building unit in Telangana, he said it was in the planning stage.

 

 

ASHOK LEYLAND IN EV PACT WITH SUN MOBILITY

 

Sun’s Maini to bring smart-battery tech

 

CHENNAI, JULY 18, 2017

 

In a significant step towards embracing the evolving future, commercial vehicle maker Ashok Leyland Ltd. (ALL) has roped in Sun Mobility, a globally recognisable name in the area of electric mobility and clean energy, to provide world standard mobility solutions.

 

Sun Mobility is promoted by Chetan Maini, founder of Reva, the country’s first electric car maker.

 

The alliance could not have been formed at any better time. It comes in the wake of an ambitious announcement made by the Centre to shift all the cars sold in India to electric vehicles by 2030.

 

It is an exclusive partnership between the two for all kinds of electric vehicles.

 

“We are proud of this partnership and hope to bring several new innovative products to the market at the earliest,’’ said Vinod K. Dasari, CEO and managing director, Ashok Leyland, while addressing the media on Tuesday.

 

Mr. Maini expressed optimism that the “partnership will help the nation move masses via an efficient, pollution-free and cost-competitive solution for electric mobility.’’

 

Fielding a range of questions, both insisted that the common goal of the alliance was to bring about operational efficiency in running a vehicle. “The focus will be on how to make the operating environment much better, and keep the operating cost less than that of diesel,’’ said Mr. Dasari.

 

 

 

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 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

INR

US Dollar

1

INR 67.08

UK Pound

1

INR 91.14

Euro

1

INR 80.01

 

 

INFORMATION DETAILS

 

Information Gathered by:

GYT

 

 

Analysis Done by:

PRY

 

 

Report Prepared by:

ARC

 

 

SCORE FACTORS

 

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

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and opera     tions size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.