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Annual Report 2010-2011 Annual Report 2010-11 17 .
18 Ashok Leyland Limited .
Rajasthan.A. chairman (Alternate : Y M Kale) R seshasayee. uttarakhand www.ashokleyland.10. Managing director K sridharan A R chandrasekharan Anup Bhat A K Jain Jayendra parikh R R G Menon p G nilsson nitin seth Rajive saharia shekhar Arora M s Krishnaswami & Rajan deloitte Haskins & sells Geeyes & co. credit Agricole corporate and investment Bank Hdfc Bank Limited icici Bank Limited idBi Bank Limited punjab national Bank standard chartered Bank state Bank of india state Bank of patiala the Hongkong and shanghai Banking corporation Limited 1.2011) sanjay K Asher (from 21. Maharashtra.2010 ) Jorma Antero Halonen (from 19. Bhandara. tamil nadu. chennai 600 032 chennai (ennore & Ambattur) and Hosur. Executive Vice Chairman Anil Harish d J Balaji Rao A K das Jean Brunol (from 20.BoARd of diRectoRs cHief finAnciAL officeR executiVe diRectoR And coMpAny secRetARy executiVe diRectoRs AuditoRs cost AuditoRs BAnKeRs ReGisteRed office pLAnts WeBsite dheeraj G Hinduja. sardar patel Road.05. pant nagar. Bank of America Bank of Baroda canara Bank central Bank of india citibank n.2010) f sahami shardul s shroff dr V sumantran Vinod K dasari. Guindy.12.com Annual Report 2010-11 19 . Alwar.
085 44.220 9.63.130 60.611 7.562 64.400 3.239 13.20.479 4.073 90.030 88.00.870 2.70.815 2.194 2.550 1.50 13.310 88.758 74.75 12.920 11.801 5.000 54.730 4.389 2.389 - 22.214.171.1245 7.100 97.073 3.82.826 25.477 42.655 38.080 6.893 2.129 63.81.750 1.356 32.70.801 5.118 3.055 3.303 1.451 44.258 54.662 2.300 49.23.28 2.06.361 60.926 19.141 45.050 94.06.183 126.96.36.199 17.63 2.) 11.094 8.710 48.867 1.303 13.00 11.000 83.040 19.040 3.664 7.444 5.31.890 84.00 15.303 13.750 16.757 79.090 69.180 63.367 80.990 26.75 0.00 12.54.010 12.550 1.377 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 88.890 12.472 8.924 47.45 13.95.980 2.931 20. Lakhs 2001-02 Sales Volume Vehicles (numbers) engines (numbers) spare parts and others Revenue (Gross sales) Profit before tax Profit after tax Assets net fixed Assets investments net current assets Total Financed by shareholder's funds .38 3.50 13.310 13.680 54.715 6.176 22.980 2.673 5.684 83.202 54.470 22.50 12.06.01 1.303 13.27.A HISTORICAL PERSPECTIVE Rs.53 1.08.capital .646 19.501 27.94.Reserves Loan funds deferred Liability defered tax liability .840 18.17.920 36.654 5.890 11.05.890 91.452 2.775 1.815 46.964 6.980 15.43 3.960 1.993 188.8.131.52 54.964 6.969 63.20 11.900 1.744 3.84.245) 8.040 17.845 1.250 93.307 11.178 1.110 14.net Total Basic Earnings per share (Rs.007 1.431 21.690 88.611 7.190 17.09.99.392 1.740 6.230 17. 1 each) Employees (nos.506 1.220 13.10.845 19.897 29.900 18.28.850 11.92.171 78.680 2.39.938 1.812 20 Ashok Leyland Limited .) (face value Re.30.74 2.304 1.02.744 3.26.021 28.812 92.260 12.980 11.19.78 1.26.970 - 1.) Dividend per share (Rs.31.net foreign currency translation difference account .66.109 94.84.358 35.050 184.108.40.2061 4.860 0.125 1.660 63.53.870 2.69.332 1.230 32.218 0.344 384 7.124 54.919 99.960 1.732 220.127.116.110 1.818 82.07.366 3.615 1.56.103 4.454 (1.02.87.447 79.060 71.18 4.680 0.05.730 98.161 36.50 11.380 83.600 61.382 26.
179. Dividend The Directors recommend a dividend of 200% (Rs. The Commercial Vehicles industry witnessed strong growth on the back of adequate freight availability and higher capacity utilization. Technology Absorption.1/-) – Basic (in Rs.98 26.48 12. 4th and 5th year and fully redeemed Secured Non-convertible Debentures Series AL 11 of Rs.A to this Report.98 2009-2010 54.93 17. The particulars prescribed by the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. technology absorption. FINANCIAL RESULTS (Rs.19 Highlights of performance are discussed in detail in the Management Discussion and Analysis Report attached as Annexure-D to this Report.041. With the above background.00) 81.34 80. lakhs) 2010-2011 Profit before tax Less: provision for taxation Profit after tax Balance profit from last year transfer from/(to): debenture redemption reserve 416.6% facilitated by policy stimulus and encouraging agricultural output.000.93 57.00) 1.00 42.57 416. enhancement of comforts and development of New Generation engines.744.000.DIRECTORS’ REPORT Part I .955.744.21000 lakhs repayable at the end of 3rd. Annual Report 2010-11 21 .110. energy conservation etc.06.77 4. Long Term Borrowings: During the financial year 2010-11. your Company recorded highest ever sales for the year ended March 31.118.1988 relating to Conservation of Energy.2/. Company Performance The Indian economy is estimated to have registered a broad-based growth of about 8.18 75.477.230. Expenditure incurred by way of capital and revenue on these activities are shown separately.129. your Company issued Secured Non-convertible Debentures Series AL 13 to AL 15 to the tune of Rs.250. 2011 supported by a record performance in exports. Debentures / Term Loans were utilized to fund capital expenditure programmes of the Company as per the terms thereof.07 3.) 4.48 48.316.5000 lakhs (final installment of Rs. 2011. Foreign Exchange are furnished in Annexure .367. fuel efficiency. for the year ended March 31.per equity share of Re.Performance / Operations The Directors have pleasure in presenting the Annual Report of the Company.28 19.52 57.75 3.25000 lakhs during FY 2010-11 from a Bank for a tenor of five years.67 (10. Research and development.050. Your Company has continued to focus on Research and Development activities with specific reference to green initiatives.62% in value terms.014.29 (10.67 lakh paid during FY 2010-11). 2011.1666. Sales increased by 47% over the previous year by volume and by 53.606.66 (5.314.1/-) for the year ended March 31. Availment of Rupee Term Loans Your Company availed Secured Rupee Term Loans to the tune of Rs.00) General reserve Profit available for appropriation Appropriation: proposed dividend corporate dividend tax thereon Balance profit carried to Balance sheet earnings per share (face value Re. together with the audited Accounts.00 63.
U.DIRECTORS’ REPORT Strategic Alliances Optare plc. The Board of Directors wishes to place on record its deep appreciation of Mr Shahaney’s contribution during his tenure as a member of the Board since 1978 and as Chairman since 1997. as required by SEBI guidelines.C to this Report. to these markets.B to this Report. the Board has honoured him with the title of Chairman Emeritus.F forming part of this Report. Related Party disclosures/transactions are detailed in Note 7 of the Notes to the Accounts. 1956 and the Rules made thereunder. Your Board of Directors place on record the resignation of Mr Ramachandran R Nair and Mr Anders Spare from the directorship and wishes to record its appreciation for the valuable contributions made by them. 1956 is furnished in Annexure . The Statutory Auditors of the Company have examined the requirements of Corporate Governance with reference to Clause 49 of the Listing Agreement and have certified the compliance. 2010.Corporate matters Corporate Governance Your Company is fully compliant with the Corporate Governance guidelines. Many of the clauses of Corporate Governance Voluntary Guidelines 2009 issued by Ministry of Corporate Affairs are being followed by your Company. a leading bus manufacturer in U. Directors Mr R J Shahaney resigned as Director and Chairman of the Company with effect from October 20. The CEO / CFO certification as required under the SEBI guidelines is attached as Annexure . The Executive Vice Chairman has given a 22 Ashok Leyland Limited . The information required under Section 217(2A) of the Companies Act..G to this Report. Ashok Leyland (UAE) LLC. as required under SEBI guidelines.K. U. This facility will cater to the needs of the African/Middle East markets and also facilitate launching of AVIA range of trucks manufactured by Avia Ashok Leyland Motors s. The state-of-the-art factory built as a venture between your Company and Ras Al Khaimah Investment Authority (RAKIA). as laid out in Clause 49 of the Listing Agreement. The certificate is reproduced as Annexure .. In recognition of his outstanding contribution to your Company. in respect of employees is provided in the Annexure . at Ras Al Khaimah was inaugurated on December 16.E to this Report. which will benefit the Company in its endeavour to address new markets. Ashok Leyland Defence Systems Limited In order to continue to participate in the defence business of the Company and to exploit opportunities available in the defence industry. Part II .K. your Company has made a strategic investment of 26% of the equity shares capital in Ashok Leyland Defence Systems Limited. The details of the Code of Conduct are furnished in Annexure . certificate of compliance with the Code of Conduct. The Directors’ Responsibility Statement as required under Section 217(2AA) of the Companies Act. and to accelerate technology development.K. your Company acquired 26% in the equity share capital of Optare plc.r.o. All the Directors (and also the members of the Senior Management – of the rank of General Managers and above) have confirmed in writing their compliance with and adherence to the Code of Conduct adopted by the Company. 2010. In line with the Company’s strategy.
2010 and May 19. 2011. The term of Mr R Seshasayee as Managing Director expired on March 31. retire at the close of this Annual General Meeting and are eligible for re-appointment. support and continued co-operation through the year. Acknowledgement The Directors wish to express their appreciation of the continued co-operation of the Central and State Governments. Chartered Accountants. Their term of office expires at the end of the ensuing Annual General Meeting. the major shareholders Hinduja Automotive Limited. Mr Sanjay K Asher and Mr Jorma Antero Halonen were appointed as Additional Directors at the Board Meetings held on October 20. 2011 respectively. the Hinduja Group and all the shareholders. In line with the succession plan drawn up and in recognition of the contributions made by Mr Vinod K Dasari. 2011 On behalf of the Board of Directors Dheeraj G Hinduja Chairman Annual Report 2010-11 23 . your Board of Directors appointed Mr Vinod K Dasari as Managing Director with effect from April 1. Necessary resolutions relating to the same are being placed before the shareholders for approval. M/s Geeyes & Chennai May 19. The Directors also wish to thank all the employees for their contribution. The necessary resolution proposing his appointment and the remuneration payable to him is being placed before the shareholders for approval. Necessary resolutions are being placed before the shareholders for approval. The Company has received confirmation from both the firms that their appointment will be within the limits prescribed under Section 224(1B) of the Companies Act. dealers and suppliers and also the valuable assistance and advice received from the joint venture partners. Secretarial Audit Secretarial Audit is being carried out by a practising professional on voluntary basis. Auditors M/s M S Krishnaswami & Rajan. Mr Jean Brunol. 2011. financial institutions. In order to secure his leadership to realize the Company’s Vision.. 1956.DIRECTORS’ REPORT Mr D J Balaji Rao. Cost Auditors The Government has stipulated Cost Audit of the Company’s records in respect of motor vehicles as well as engineering industries(diesel engines). Mr Dheeraj G Hinduja and Dr V Sumantran Directors. 2011. The Audit Committee of the Board has recommended their re-appointment. customers. retire at the forthcoming Annual General Meeting and are eligible for re-appointment. Cost Auditors have carried out these audits. The Company has received Notices under Section 257 of the Companies Act proposing them for appointment as Directors of the Company. The necessary resolution proposing his appointment and the remuneration payable to him is being placed before the shareholders for approval. The findings of the Secretarial Audit have been satisfactory. your Board of Directors appointed him as Executive Vice Chairman with effect from April 1. December 21. Their findings have been satisfactory. The necessary resolution is being placed before the shareholders for approval. 2010. Chartered Accountants and M/s Deloitte Haskins & Sells. Co. bankers.
132. Use of natural lighting and ventilation. Expenditure on R & D Awards and recognition : Bhandara plant was awarded 1st prize in “ National level Innovation Quest 2011” conducted by Indian Institute of Industrial Engineering for the Case study “Energy conservation through Innovative approach (Questioning status quo)" B) Technology Absorption 1. higher fuel efficiency.2 Mn electrical units have been saved leading to significant savings in energy costs during 2010-11. Rs.262.8 of Notes to the Accounts.61 31. Benefits derived as a result of R&D: Compliance to all emission standards at lower cost than competition. This was possible by the high degree of awareness and involvement of employees through Mission Gemba Cost Management Initiative. 24 Ashok Leyland Limited . 2. Future plan of action: Next generation of truck platform being taken up Next generation of cab being developed Upgradation of engine families to Euro 5 emission levels New medium duty platform of vehicles is under development 4. About 3.59% C) Foreign Exchange Earnings and Outgo Details of earnings and outgo of foreign exchange are given in 1. 3. Specific areas in which R&D carried out by the Company Engines Innovative development of Bharat Stage III Engine by using in line mechanical pump which is both friendly to the customer as well as to the quality of fuel. Use of solar energy initiated. Next generation of vehicle models launched with superior price-performance points. ‘N’ series engines with superior fuel efficiency applicated on vehicles. higher comfort levels and better driver environment. Maintenance of Power factor throughout the year through optimum use of capacitor banks. Innovative development of Bharat Stage IV Engine families with world-class Exhaust Gas Recirculation (EGR) and Selective Catalytic Reduction (SCR) technologies. Development of a modern and contemporary engine package protected for Euro-6 emission standards. The Company continues to strive to improve its export earnings.129.Annexure-A to Directors’ Report PARTICULARS OF CONSERVATION OF ENERGy. Some Key initiatives were: Use of wind power.5 to 1. Lakhs 2010-11 capital Revenue (excluding depreciation) total total R & d expenditure as a% of total turnover 13.13 2.52 18. about 61% of total savings in cost was through the use of wind power. Vehicle models New platform of truck models called “U” Truck developed and launched providing superior features. TECHNOLOGy ABSORPTION AND FOREIGN ExCHANGE A) Conservation of Energy All manufacturing plants have implemented various initiatives for conservation of energy.
The full text of the Annual Report 2010-11 25 . Pursuant to Clause 49 of the Listing Agreement. Board appointments are made by the issue of formal letters of appointment.f. The Code aims at ensuring consistent standards of conduct and ethical business practices across the Company.e. 2. Code is furnished at the end of this Report. a confirmation from the Executive Vice Chairman of the Company regarding compliance with the Code by all members of the Board and senior management is given on Page 36 of the Annual Report. The Board is headed by Mr Dheeraj G Hinduja as a non-executive Chairman and is categorized as follows: i) Non-Executive and Independent directors: Mr Anil Harish Mr D J Balaji Rao Mr Jean Brunol Mr Sanjay K Asher Mr Shardul S Shroff Other Non-Executive Directors Mr Dheeraj G Hinduja –Chairman (Alternate: Mr Y M Kale) Mr A K Das Mr F Sahami Dr V Sumantran ii) Executive Directors: Mr R Seshasayee Managing Director .Annexure-B to Directors’ Report REPORT ON CORPORATE GOVERNANCE The Company is committed to good Corporate Governance.1956 and Listing Agreement entered into with the Stock Exchanges. com. and • achieve excellence in Corporate Governance by – conforming to the prevalent mandatory stipulations/guidelines on Corporate Governance – regular review of the Board processes and the management systems for further improvement Following Voluntary Guidelines 2009 issued by the Ministry of Corporate Affairs The Company has adopted a Code of Conduct for members of the Board and senior management. Board of Directors: In compliance of the Companies Act.2011.ashokleyland. 1.f. separation of supervisory role from the executive management and the constitution of Committees to oversee critical areas. and is also displayed at the Company’s website www. 2011) None of the above Directors are related to each other. April 1. April 1. 2011 (Appointed as Executive Vice Chairman w. the Board of Directors consisted of 11 members. 2011) Mr Vinod K Dasari Managing Director-Designate (Appointed as Managing Director w. the Company has a broad based Board of Directors with composition and constitution of Committees as detailed below: a) Composition: As at March 31. based on an effective independent Board.e.upto March 31. Philosophy on Corporate Governance Ashok Leyland’s Corporate Governance philosophy encompasses not only regulatory and legal requirements but also practices to strive towards enhancement of shareholder value through – – – sound business decisions prudent financial management and high standards of ethics throughout the organization It strives to: • nsure transparency and professionalism in all e decisions and transactions of the Company. The Company has received confirmations from all concerned regarding their adherence to the above Code.
Annexure-B to Directors’ Report REPORT ON CORPORATE GOVERNANCE b) Attendance at Board Meetings and last Annual General Meeting (AGM) and details of memberships of Directors in other Boards and Board Committees name of director no.f october 20.f december 21.e. of directorship in other meetings attended public companies registered attended during last A. 2010 Resigned as an Alternate director w.e. december 30. held under companies the year on Act (#) 2010-11 July 27. 2010 as Member as chairman (Note 1) 3 6 6 5 5 (Note 2) 2 3 4 (Note 4) (Note 5) 3 nil 3 6 5 6 (Note 6) 1 nil yes yes yes yes yes not applicable yes yes not applicable no yes yes yes yes not applicable not applicable 1 7 13 5 1 14 5 6 13 9 10 1 nil nil 1 2 nil nil nil nil no. october 20.e.e. 26 Ashok Leyland Limited .M.G. 1956. of Board Whether no. 2010 ceased to be a director w.f. 2010 (#) excludes Alternate directorships (**) Represents memberships in Audit committee.f.f. october 20. public companies exclude foreign companies. 2010 Appointed as a director w.e.e. Appointed as a director w. december 6.f. and shareholders/investors Grievance committee of public companies governed by the companies Act. 2010 and ceased to be the chairman. of committee position in other public companies registered under companies Act (**) as Member 2 9 8 3 nil 1 9 2 3 3 nil as chairman nil 3 4 nil nil nil 4 nil 1 nil nil Mr R J shahaney Mr dheeraj G Hinduja Mr Anil Harish Mr d J Balaji Rao Mr A K das Mr Jean Brunol Mr f sahami Mr sanjay K Asher Mr shardul s shroff Mr Anders spare dr V sumantran Mr R seshasayee Mr Vinod K dasari Alternate Directors : Mr prabal Banerjee Mr y M Kale note – 1 note – 2 note – 3 note – 4 note – 5 note – 6 not applicable – see note 1 Mr Ramachandran R nair (Note 3) not applicable – see note 3 not applicable – see note 5 2 4 2 not applicable – see note 6 nil 1 1 Resigned as a director w. 2010 Resigned as a director w.
General Meetings. 2010 december 21. The Committee holds discussion with external auditors before the audit commences regarding the nature and scope of audit and post audit discussion to ascertain any area of concern.The last Annual General Meeting was held on July 27. Secretarial Standards The Institute of Company Secretaries of India (ICSI) has published Standards on secretarial practices relating to meetings of the Board / Committees. of equity shares held 11. 3. of Directors 12 12 13 12 11 11 No. Annual Report 2010-11 27 . 2010 october 20. 20. 2010 July 27. Before submission to the Board for approval. etc. No. Audit Committee: The Audit Committee of the Company has been in existence from July 1987.Annexure-B to Directors’ Report REPORT ON CORPORATE GOVERNANCE None of the Directors of the Company was a member of more than 10 specified Committees or acted as Chairman of more than 5 such Committees in companies in which he was a Director. It also reviews the Company’s financial and risk management policies especially enterprise level risks.236 30. Details of Directors seeking re-appointment at the ensuing Annual General Meeting have been furnished in the Notice convening the meeting of the Shareholders. Name of the Director Mr R seshasayee Mr Vinod K dasari for conversion into shares. 2011 four months.000 The Company does not have any outstanding instruments Board Meetings held during the year 2010-11 Date of Meeting April 29.for attending to each of the Board/Committee Meeting(s). The Head of Internal Audit function reports to the Audit Committee. Information required as per Annexure-I to Clause 49 of the Listing Agreement with Stock Exchanges is provided to the Board at every meeting. The Committee also looks into the matters as are specifically referred to it by the Board of Directors Dividends. The Secretarial and the operating practices of the Company are in line with the above Secretarial Standards. No other compensation was paid to them. compliance with listing and legal requirements relating to financial statements. The details of shares held by the Directors of the Company are furnished below: a) Terms of Reference: The Audit Committee is responsible for overseeing the Company’s financial reporting process by providing direction to audit function and monitor the scope and quality of internal and statutory audits. external and internal auditors and the Board of Directors of the company. major accounting entries involving estimates based on exercise of judgment by management. qualifications if any in the draft audit report and above all adequacy of internal control systems. The Committee acts as a link between the management. the Committee reviews the quarterly/half yearly/annual financial statements with reference to changes if any in accounting policies and reasons for the same. Total no. 2010 January 22. Non-Executive Directors are entitled to a Sitting Fee of Rs. adjustments if any arising out of audit findings. disclosure of related party transactions. of Directors present 11 11 11 6 9 10 The time gap between any two meetings did not exceed . 2011 March 10 &11.000/. 2010.
20.40. No other remuneration was paid to Non-executive Directors other than the above. Company’s performance and industry standards.000 1.000 40. No sitting fee is payable ii) For Non-executive Directors Sitting Fee of Rs. potential.000 2.000 2.Annexure-B to Directors’ Report REPORT ON CORPORATE GOVERNANCE c) The Remuneration Policy of the Company is summarized as follows: The remuneration is governed by the external competitive environment. the perquisites and benefits are in line with the Company’s Rules for senior managerial personnel.000 60.000 3. individual performance.000/. • variable component – linked to the performance a of the Company as well as that of the Managing Director or the Managing Director(Designate).60.20. Mr R J shahaney Mr dheeraj G Hinduja Mr Anil Harish Mr d J Balaji Rao Mr A K das Mr Jean Brunol Mr Ramachandran R nair (**) 2.40.20. 1.40.was paid to each of the Non-executive Directors for attending the meetings of the Board or Committee thereof. a allowances (including Special Allowance) and perquisites. as the case may be – consisting of Commission as determined by the Remuneration Committee. There are no pecuniary relationship or transactions between any of the Non-executive Directors and the Company.000 80.Sitting Fees: (excluding reimbursement of travel and other expenses incurred for the Company’s business).20.000 1.000 nil 2. track record.000 20.000 Mr f sahami Mr sanjay K Asher Mr shardul s shroff dr V sumantran Mr Anders spare Mr prabal Banerjee Rs. d) The details of remuneration paid/payable to the Directors for the year 2010-11 are: i) Non-executive Directors . All Directors are also reimbursed actual travel costs and incidental expenses incurred for attending such meetings or in connection with the Company’s business. Rs. Remuneration is subject to the approval of the Board of Directors and shareholders.000 (**) Amount paid to Lic of india by means of cheque Annual Report 2010-11 29 . i) For the Managing Director and for the Managing Director (Designate) The total remuneration consists of: • fixed component – consisting of salary.80.
There is no severance fees payable to them. the Managing Director/Managing Director(Designate) approved the share transfers/ transmissions on a fortnightly basis and the same reported to at the next meeting of the Committee.Annexure-B to Directors’ Report REPORT ON CORPORATE GOVERNANCE iii) Executive Directors: (Rs.) Managing Director a) fixed component (i) salary (ii) perquisites (**) (iii) special Allowance b) Variable component .360 2.439 36.46. stipulating 3 months’ notice period from either side. 2010 October 20.754 36.400 20. 2011 3 3 3 3 During the year. Managing Director (Designate) 31. 5. Executive Director and Company Secretary is the Secretary to the Committee and is also the Compliance Officer appointed for the compliance of capital market related laws.994 31. 2010 July 27. Shareholders/Investors Grievance Committee a) The Shareholders/Investors Grievance Committee was constituted in 2000.620 2. 2010 January 22.000 79. The manner and timeliness of dealing with complaint letters received from Stock Exchanges/ SEBI/ Ministry of Corporate Affairs etc.. normally held every quarter. e) Mr A R Chandrasekharan.64.20.07. c) The Committee also reviews the performance of the Company’s Registrar & Transfer Agent (R&TA) and their system of dealing with and responding to correspondence from all categories of shareholders. 2459 complaint/correspondence letters were received from investors (including 23 letters from SEBI / Stock Exchanges/ MCA).84.45. an Independent Director as Chairman (Mr R J Shahaney was the Chairman upto 20/10/2010).60.20.000 88.000 45. d) Based on the delegated powers of the Board of Directors. and the responses thereto are reviewed by this Committee. b) The Committee approves issue of new share certificates and looks into investor complaints/ grievances on a periodical basis.42.96. Executive Vice Chairman as a member. The Company has no Employee Stock Options Scheme in force at present. f) Meetings and Attendance during the year 2010-11: April 29.859 Mr Seshasayee and Mr Vinod K Dasari are under contract of employment with the Company. 1983 30 Ashok Leyland Limited .commission c) contribution to provident fund and superannuation fund Total (**) Certain perquisites valued as per the Income Tax Rules.800 24.34. an Independent Director as a member and Mr R Seshasayee. Mr D J Balaji Rao.72.60.75. The Committee consists of Mr Sanjay K Asher.000 98.
which occasionally remained pending beyond the normal time limits were cases of inadequate documentation or clarifications being awaited. Esplanade Road. The necessary disclosures regarding the transactions with related parties are given in the Notes to the Annual Accounts for the year 2010-11. there were 2 share transfers pending. 2011. Year 59th AGM 2008 Location Kamaraj Memorial Hall. Chennai 600 006 Tamil Isai Sangam.2010 2. 2011. www. 3 unresolved complaints as at March 31. 2011. 2011 have since been resolved by April 5. including press releases.30 a. 492 Anna Salai. 7. The quarterly results are also displayed on the Company’s website 60th AGM 2009 July 28. Annual Report 2010-11 31 .30 a. A vast majority of them have expressed high degree of satisfaction on various aspects of investor servicing. Disclosures There have been no materially significant related party transactions with the Company’s Promoters. Means of Communication a) Investor mailer is being sent since 2001 as an enclosure to the half-yearly results and the same is available on the Company’s website www. which have since been resolved. 492 Anna Salai. 61st AGM 2010 July 27. The Company had no subsidiary company as on March 31. their Subsidiaries or relatives which may have potential conflict with the interests of the Company. 664 Investors had responded to the Survey. Teynampet. Teynampet. 6) General body meetings a) Details of location and time of holding the last three AGMs. 2008 10. g) As on March 31. Issues raised by some investors were pursued and dealt with satisfactorily. The very few letters. the Company conducted an Investor Satisfaction Survey through a questionnaire.45 p. nor have any penalty/strictures been imposed on the Company by the Stock Exchanges or SEBI or any other statutory authority on such matters during the last three years.ashokleyland. ashokleyland. There were no resolutions requiring approval through Postal Ballot. Chennai 600 108 Date & Time July 30. There have been no instances of non-compliance by the Company on any matters related to the capital markets. 8. 2009 10. No Special Resolution is proposed to be conducted through postal ballot . At the October 2010 meeting. No EGM was held in the last three years. the Committee also reviewed the Special Report analysing the feedback from the Investor Satisfaction Survey and approved the steps taken for further improvements in investor servicing. Chennai 600 006 Kamaraj Memorial Hall. this was completed on April 12.Annexure-B to Directors’ Report REPORT ON CORPORATE GOVERNANCE letters were received on routine matters. all these were dealt with satisfactorily.com c) The Company’s website also displays several other details / information of interest to various stakeholders.com b) The quarterly results have been published in one leading national (English) business newspaper and in one vernacular (Tamil) newspaper. The Chairman of the Audit Committee was present at all the above AGMs. the Management. which was mailed along with the Notice of AGM 2010.m. Directors. For the tenth year in succession.m. 2011. Rajah Annamalai Mandram. b) All the Special Resolutions placed before the shareholders at the above meetings were approved. 5.m.
05 68.70 18.86 17.45 57.80 6.276.45 70.872.65 5.047.10 5. T.96 18.786.00 81.50 6.20 78. and reviewing investor grievances..50 6.27 20.819..56 18.768.90 national stock exchange share price Low (Rs.80 64. of shares.20 59.10 52.00 74.30 6.25 68. Kences Towers.80 71.399.90 75.338.05 46.366.45 4.) 60.39 17.549.20 s&p cnx nifty points High Low h) Share Price performance in comparison to broad based indices – BSE Sensex and NSE Nifty Share Price Movement (BSE and NSE) . were generally approved within 15 days.177.97 19.395.690.65 5.50 5.919.75 59. transmissions. In order to further improve and speed up investor servicing.05 5.64 20. Chennai 600 017 as the Registrar and Transfer Agent (R&TA) of the Company for all aspects of investor servicing relating to shares in both physical and demat form.17 sensex points High Low High (Rs.00 5.80 15.954.90 4.12 19.60 65.60 5.99 18.03 20.70 59.62 18.10 6.15 59.854.75 79.35 65. etc.45 62.536. i) Registrar and Transfer Agents The Company has appointed M/s Integrated Enterprises (India) Ltd.25 5.58 17.90 5.475.30 45. Mr D J Balaji Rao and Mr R Seshasayee.Annexure-B to Directors’ Report REPORT ON CORPORATE GOVERNANCE g) Stock Market Data Bombay stock exchange Month share price High (Rs. issue of duplicate shares etc.55 56.05 5.75 61.70 5.960.792. transmissions.62 17.108.75 5.35 5.98 20.10 53. etc.30 70.073.60 71.15 56. requests for dematerialization were confirmed within 7 days (as against the norm of 15 days).721.80 18.690.50 5.267. Annual Report 2010-11 33 .15 16.75 68.15 5.318.961.027.575.82 19.181.284.664.552.30 60.25 45.225.86 17. North Usman Road.85 65.90 71.16 17.403.00 78.) 53.55 21. j) Share Transfer System The authority relating to transfer of shares and allied work relating to servicing of investors have been delegated by the Board to the Shareholders / Investors Grievance Committee which consists of Mr Sanjay K Asher (Chairman).) 53.15 74.348.90 57.20 52.074.160.) April 2010 May 2010 June 2010 July 2010 Aug 2010 sep 2010 oct 2010 nov 2010 dec 2010 Jan 2011 feb 2011 Mar 2011 60. In addition.40 81. Nagar.00 77.57 18.10 46.295. Such approval is being given by the Managing Director at frequent intervals ( 29 times during 2010-11).70 79. the Committee met 4 times during the year 2010-11 for approving transfers.348.416..278.90 75. 1 Ramakrishna Street.See Table above and Chart on Page 89.599. the Board has authorized the Managing Director to approve all routine transfers.15 74.05 5.00 71.237.90 Low (Rs.038.48 17.937.70 5.50 62. transmissions.147.477.. Transfers. 2nd Floor.
21.52.722 0.65.700 22.060 18.104.22.168.76 3.686 38 138 2.00 No.19.781 48 21 36 2 2.55 1.155 Electronic Mode .41. (includes 16.45 Total 2.no.38.884 3.38.874 0.92 2001-5000 8. Status of Dematerialisation of Shares .00 No.as on March 31.70.102 17.10.081 (ii) Pattern of Shareholding as on March 31.782 22.214.171.1249 0.45.21.Annexure-B to Directors’ Report REPORT ON CORPORATE GOVERNANCE k.800 2.82 67.945 91. of shares % to paid-up no.02.18.817 9.668 5.475 1.44.foreign / foreign nationals corporate Bodies Mutual funds trusts Banks others .69 10001 & above 1.Hinduja Automotive Ltd.59. of shares % to paid.000 1.317 % 50.62 1001-2000 14.39.NSDL .070 shares in GdR form) Residents (individuals / clearing Members) financial institutions/insurance co.605 17.54.69 65. of Holders 1 2.46.315 8. 2011 no.09.79.36 2.197 3.79. 1 2 3 4 5 6 7 8 9 10 l.51.GdR TOTAL (i) no.27.46 51-100 54.93 6.47.68 201-500 46.00.317 100. the shares of the Company are accepted in the Stock Exchanges for delivery only in dematerialisation form.03.02 1.771 holders 34 Ashok Leyland Limited .205 17.91.CDSL .77.93 1.82.91. of Shares 67.811 1.301 1.42.106 0.47. Category promoter . 2011 Physical Demat Total Holders no.87.352 1.23.04.51 2.32.526 1.13 51. companies/uti foreign institutional investors non-Resident indians/ ocB / corporate Bodies foreign / Bank .90.01.700 0.11.347 14.00 Dematerialisation of shares and Liquidity Shares of the Company can be held and traded in electronic form.019 1.31 5001-10000 1.33. distribution of shareholding as on March 31.02 ** including in GdR form *** held by 17. / state Govt. As stipulated by SEBI.851 0.24.22.95 1.081 .39 65.628 1.16 126.96.36.199.02 0.98.77 501-1000 23.82.680 188.8.131.52.12.49 1.740 1.553 24.06 100.562 100.52.20 13. 2011 Sl No.562 No.38.782 13. of shares number % 17.69 0.66.18 13. of shares shareholders number % upto 50 60.3.746 4. of shares Physical .56.98 others (***) 1. of shares % to paidup capital (**) capital (**) up capital Hinduja Automotive Limited (**) 44.16 0.88.47.64.10 101-200 36./Govt.474 18.03.98 10.10.33 63.535 49.69 2.
com A R Chandrasekharan Executive Director & Company Secretary Annual Report 2010-11 35 .1 MIDC Industrial Area Village Gadegaon.com Website address Email ID of Investor Grievances Section Name of the Compliance Officer www. Kences Towers 1. m. Area Alwar 301 030 Rajasthan Pant Nagar Plot No. Plant Locations Ennore Kathivakkam High Road Ennore Chennai 600 057 Tamil Nadu Hosur – Unit IIA Cab Panel Press Shop SIPCOT Industrial Complex Mornapalli village Hosur 635 109. Nagar. Sakoli Taluk.com secretarial@ashokleyland. Chennai 600 032 Alwar Plot No. Tamil Nadu Bhandara Plot No. Address for Correspondence To contact R&TA for all matters relating to Shares.Annexure-B to Directors’ Report REPORT ON CORPORATE GOVERNANCE Shares of the Company are actively traded in the Bombay and National Stock Exchanges. Sector XII II E. : 91-44-2220 6000 Fax : 91-44-2220 4410 e-mail : secretarial@ashokleyland. Complex Hosur 635 126 Tamil Nadu Hosur – Unit II 77 Electronic Complex Perandapalli Village Hosur 635 109. Bhandara 441 904 Maharashtra Technical Centre Vellivoyalchavadi Via Manali New Town Chennai 600 103 Tamil Nadu M/s.ashokleyland.com For any other general matters or in case of any difficulties / grievances Tel. n. Tamil Nadu Ambattur 3A/A&2 North Phase Sidco Industrial Estate Ambattur.SPL 298 Matsya Indl.1. Chennai 600 098 Tamil Nadu o. Integrated Enterprises (India) Limited 2nd Floor. Outstanding GDR/ Warrants and Convertible Notes. Annual Reports Hosur – Unit I 175 Hosur Indl. 2011 having an impact on equity. Ramakrishna Street North Usman Road T.com corpserv@iepindia. Pin -263 153 Uttarakhand Tel : 91-44 – 2814 0801 / 03 Fax : 91-44 – 28142479 e-mail : corpserv@iepindia. and hence have good liquidity. Pant Nagar. Conversion date and likely impact on the equity No GDR is outstanding as on March 31.1 Sardar Patel Road Guindy. Chennai 600 017 Secretarial Department Ashok Leyland Limited No. Dividends.
without the prior approval of the Board. The Company has been mailing half-yearly reports to shareholders from October 2001. full details are furnished under Item 4 of this Report. along with a letter from the Managing Director highlighting significant events. Remuneration Committee The Company has constituted a Remuneration Committee. Code of Conduct for the Senior Management This is to confirm that for the financial year ended March 31. 2011 Chennai R Seshasayee Executive Vice Chairman 36 Ashok Leyland Limited . 3. avoiding violations or non-conformities. f) Conduct themselves and their activities outside the Company in such manner as not to adversely affect the image or reputation of the Company. which could impact the Company’s operations. iii) shall not be party to transactions or decisions involving conflict between their personal interest and the Company’s interest. ii) shall disclose full details of any direct or indirect personal interests in dealings/transactions with the Company. and for this purpose i) shall adopt total transparency in their dealings with the Company. g) Inform the Company immediately if there is any personal development (relating to his/her business/ professional activities) which could be incompatible with the level and stature of his position and responsibility with the Company. May 19. well before the date by which the Company is required to fill in the vacancy caused by the cessation of Mr Ramachandran R Nair as Director. 4. integrity.Annexure-B to Directors’ Report REPORT ON CORPORATE GOVERNANCE Non mandatory requirements 1. SEBI Guidelines on Corporate Governance The Company is compliant with the SEBI Guidelines. h) Bring to the attention of the Board. and not be associated simultaneously with competing organisations either as a Director or in any managerial or advisory capacity. Chairman or the Managing Director as appropriate. Whistle Blower Policy The Company does not have a Whistle Blower Policy. who is not an employee of the Company. The requirement relating to composition of the Board is met by Mr Jorma Antero Halonen agreeing to join the Board as Independent Director from May 2011. Non-Executive Chairman The Company maintains the office of the NonExecutive Chairman and reimburses expenses incurred in the performance of his duties. and which in the normal course may not have come to the knowledge of the Board/Chairman or Managing Director. and be accountable to the Board for their actions/violations/ defaults. 2011 all members of the Senior Management have affirmed in writing their adherence to the Code of Conduct adopted by the Company. d) Always adhere and conform to the various statutory and mandatory regulations/guidelines applicable to the operations of the Company. c) Apply themselves diligently and objectively in discharging their responsibilities and contribute to the conduct of the business and the progress of the Company. 5. i) Always abide by the above Code of Conduct. e) Not derive personal benefit or undue advantages (financial or otherwise) by virtue of their position or relationship with the Company. Postal Ballot The Company has had no occasion to use the postal ballot during the year. shall a) Always act in the best interests of the Company and its stakeholders. Shareholder Rights The statements of quarterly and half yearly results are being published in the Press. confidentiality and discipline in dealing with all matters relating to the Company. Code of Conduct Members of the Board and the Senior Management. b) Adopt the highest standards of personal ethics. 2. but has an independent Ombudsman. any information or development either within the Company (relating to its employees or other stakeholders) or external.
KRisHnAsWAMi & RAJAn Chartered Accountants Registration no: 01554s M. 4. for M. The compliance of conditions of Corporate Governance is the responsibility of the management. 33023 Annual Report 2010-11 37 . we certify that the Company has complied with the said conditions of Corporate Governance as stipulated in the above mentioned listing agreement.s. RAJAn Partner Membership no. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. It is neither an audit nor is this certificate an expression of opinion on the financial statements of the Company. 2. 2011as stipulated in clause 49 of the listing agreement of the said company with the stock exchanges in India.K. with the relevant records and documents maintained by the Company and furnished to us and the report on Corporate Governance as approved by the Board of Directors.4059 May 19. 3. Based on the aforesaid examination and according to the information and explanations given to us. 2011 chennai for deLoitte HAsKins & seLLs Chartered Accountants Registration no: 117366W R. LAxMinARAyAn Partner Membership no. adopted by the Company for ensuring the said compliance. Our examination has been limited to procedures and implementation thereof.Annexure-C to Directors’ Report AUDITORS’ CERTIFICATE ON COMPLIANCE wITH THE CONDITIONS OF CORPORATE GOVERNANCE UNDER CLAUSE 49 OF THE LISTING AGREEMENT To the Members of Ashok Leyland Limited 1. We have examined the compliance with the conditions of Corporate Governance by Ashok Leyland Limited (the Company) for the year ended March 31.
and moderate fiscal incentives provided for hybrid and electric vehicle components are being considered. will dampen growth in several sectors. and Ethiopia. Mumbai. Index of Industrial Production (IIP) grew 7.8% respectively. and consequently. following the severely deficient one the year before.6%. with the US and EU growing at 2. Though broad based.000 crore (US$ 46.5%. However. With global prices of crude oil continuing to remain high and volatile. especially real estate and automobiles. your Company remains cautiously optimistic about global economic growth. South America’s largest economies. your Company remains cautiously positive about the continued growth of the Indian economy. oil marketing companies have hiked the prices of petroleum products. the second largest nation.5%). was driven largely by developing economies across Asia. albeit with a few minor setbacks. Similarly. Nonetheless.5%. whilst developed markets are expected to grow more slowly at 2. in turn. Given these factors.8%. The Government has targeted a GDP growth rate of 9% in 2011-12 and with conscious efforts to support it through the Union Budget. High inflation persisted throughout 2010-11. Growth can be expected in the cold chain business which should increase demand for reefer trucks and power generators. The launch of a ‘National Mission for Hybrid and Electric Vehicles’ has been announced. Some announcements made in the Union Budget are expected to impact commercial vehicles positively like financial assistance for metro projects in Delhi. particularly oil. Economy and Market Trends Global Economy The global economy continued to recover from the fall of 2008.6% in 2010-11. fears of a double dip recession seem to have receded. forcing the Reserve Bank of India to make several calibrated interventions to contain it. commodity and stock . Bengaluru. is expected to remain a cause for concern. An allocation of Rs. during the year. IMF has estimated real GDP growth to be 5% in 2010. a shade below the previous year. without sacrificing growth. The US continued to cope with high per capita debt (~USD 46000 in March 2011).Annexure-D to Directors’ Report MANAGEMENT DISCUSSION AND ANALySIS REPORT A. the commercial vehicle industry.4% primarily due to a normal monsoon.3% over 2010-11. Whilst Indian economy grew at 8. Africa and Latin America. on the other hand.5% in 2011-12 with emerging economies leading the charge (growth rate of 6. grew at 7. Brazil and Argentina. Africa’s largest nation. Indian Economy The Economic Survey of India revealed that India’s real GDP grew by about 8% in 2009-10 and by about 8. These countries recorded an average growth of 8%. Growth. growth during 2010-11 was driven significantly by a rebounding Agriculture sector which is estimated to have grown by about 5. Recent moves by RBI include a 50 basis points increase in repo rates which will impact interest rates. 214. grew at 6. The year was marked by imbalances in the US. commodity inflation. which. In light of the above.5 billion) for infrastructure in 2011-12 reflects an increase of 23. The Federal Reserve resorted to a second infusion of USD 600bn in November 2010 to stimulate the economy.8% and 1. 38 Ashok Leyland Limited . The resultant liquidity impacted several global markets – currency. Nigeria. at 7%. which is yet to be restored. though uneven.8% in April 2010-February 2011. Africa and South America. especially given the geopolitical uncertainties in oil producing regions. grew more sedately at around 3%. while continuing to maintain interest rates at near zero levels.which also created considerable volatility. Many metro phases are expected to go live in 2011-12. IMF has forecast global GDP to grow at 4. particularly in emerging markets across Asia. that demonstrated greater buoyancy. the world’s largest economy. Developed economies. Kolkata and Chennai.
infrastructure and heavy engineering industries.76.721 26.91% 18.4 percentage point market share in the Indian M&HCV segment during the same period. The contribution of M&HCV grew to about 48% of the overall commercial vehicle segment. Buses and trucks in the LCV range registered growth rates of 40% and 98% respectively over the previous year. However.Annexure-D to Directors’ Report MANAGEMENT DISCUSSION AND ANALySIS REPORT Commercial Vehicle (CV) Industry The domestic Commercial Vehicle (CV) industry continued to grow robustly during 2010-11 as it recovered from the lows of 2008. Commodity price inflation could apply pressure on margins.The year (2010-11) in brief Against the backdrop of rising demand for commercial vehicles. Medium and Heavy Commercial Vehicles (M&HCV) grew by 32%. Exports of M&HCV buses registered a substantial growth of 75%.53.97% Overall economic growth indicators remain positive. 25% and 54% respectively more than the previous year.235 2. a growth of 47% compared to the previous year.226 76.31 tonne capacity range.605 6.620 units.32. the Company sold 83. The Total Industry Volumes registered in 2010-11 and 2009-10 were: DOMESTIC 2010 – 11 2009 – 10 change M&HcV Bus M&HcV truck LcV Bus LcV truck Total CV 47. Rising interest rates as well as any upward revisions in diesel prices to contain the extent of subsidy could also dampen growth. Within multi-axle vehicles.069 74. triggering the launch of upgraded vehicles across the product range of all OEMs. sales of multi-axle trucks. 2010 respectively.78% 6.01. estimates that M&HCV will grow by 13-14% and LCV by 17 -18% during 2011-12. also grew significantly at 207% as against 158% in 2009-10. thus moving towards greater operating efficiencies. a 72% growth against the previous year largely attributable to a revival in the Annual Report 2010-11 39 .878 97. The new emission norms (Bharat Stage IV for identified metros and Bharat Stage III for the rest of India) were introduced with effect from April 1. Data published by SIAM reveal that tractor-trailers with capacities greater than 35 tonnes reported sales growth of 66% against 73% over the previous year.306 vehicles in 2010-11. Ashok Leyland . CRISIL. Multi-axle rigid trucks and trailers. with the highest ever number of vehicles being exported worldwide. B.75.140 2.425 buses and 62.356 30. auguring well for the CV Industry in 2011-12. Your Company gained 2.413 8.799 43. Your Company registered its highest ever sales of 94.706 40. compared to 46% in the previous year. 2010-11 was also a watershed year for Indian exports.667 3.74% 2. 45% more than the previous year that included 20. the same dampeners of GDP growth could slow down the growth of CVs too. while M&HCV trucks registered 30% over the previous year.861 36.480 34. in the 25 . 2010 & October 1. which act as good indicators of economic activity.35% 37. recording the highest ever sales surpassing the previous high of 275.39% 21.03% 2. Exports demonstrated phenomenal growth clocking 10. used for transportation of materials used in construction.58% 45.556 units in 2006-07.38% EXPORTS 2010 – 11 2009 – 10 change 10. the market demonstrated a pronounced shift to rigid vehicles with higher capacity (8X2).083 10.553 43.098 M&HCV. the rating agency. The thrust on infrastructure and a normal monsoon should drive truck sales. to touch 322.297 14.364 24.106 vehicles.009 69.788 numbers.408 5.16.673 trucks. Light Commercial Vehicles (LCV) posted 23% growth and reached volumes of 353.51% 3. continued to grow at a scorching pace. while the continued focus on urban renewal should give a fillip to bus sales. In the domestic market. Ashok Leyland registered several ‘firsts’ in 2010-11.
Annexure-D to Directors’ Report
MANAGEMENT DISCUSSION AND ANALySIS REPORT
customers to obtain trained drivers, your Company opened a new driver training centre in Kaithal, Haryana, to increase the number of such Ashok Leyland supported institutes to three. Your Company continued to invest heavily in Product Development in 2010-11. The New Generation Cab and the Neptune Engine programmes are on track and will be progressively integrated into the U-Truck range. Substantial effort is being made to revamp the range of Intermediate Commercial Vehicles and offer a global product to the Indian market, drawing upon the strengths of AVIA, Ashok Leyland’s associate company in the Czech Republic. Your Company’s wide portfolio of buses and coaches are further being enhanced. The acquisition of 26% equity stake in Optare, a UK based manufacturer of contemporary rear-engine city buses and a leader in ‘green’ technology, has added to Ashok Leyland’s bus building capabilities. A range of products incorporating best practices from this range is under development. In addition, your Company continued to invest in drive train technologies of the future, particularly in Hybrid and Electric vehicles, by enhancing the HYBUS portfolio. The Company’s present Enterprise Resource Planning (ERP) system is a well-established home-grown system that connects end-to-end, addressing most enterprise transaction needs. Also in use is a Product Lifecycle Management platform to support the Design Release process, to manage Bill of Material and to integrate with Product Performance Reports filed by field service for issue of clarifications based on severity, analysis and resolution. Given the pace of growth, your Company has launched a large scale project to upgrade its systems to address future needs more effectively – be it system aided centralized constraint based planning, higher levels of integration with suppliers, collaborative planning and build or demand planning. Mission GenNext has been launched as a business process transformation initiative that will re-engineer your Company’s processes to be futureready and enable easy migration to the world class SAP platform. Hinduja Leyland Finance Your Company had promoted a non-banking finance company named Hinduja Leyland Finance Limited (HLFL) as its financing arm to boost sales. With approximately 690 employees, HLFL operates in over 400 centres across over 20 States. In its first full year of operation, it financed approximately 5,300 Ashok Leyland vehicles and made a total disbursement of Rs. 1200 Crores. JV with Nissan Motors The Joint Venture with Nissan Motor Company has recently unveiled its first product branded DOST, which is powered by a specially-developed, 55 hp high-torque, 3-cylinder, turbo-charged common rail diesel engine and having a payload capacity of 1.25 Tonnes. Mirroring the evolution of the Indian light truck market, the small commercial vehicle segment (vehicles less than 3.5 Tonnes) has been witnessing a perceptible upward shift in terms of features, performance and payload and the DOST has been positioned as a contemporary, powerful yet highly efficient product. With the hub-and-spoke model fast gaining ground, it is well-placed to ride the robust demand for vehicles making last-mile deliveries. The product from the JV aims to blend the best in terms of Japanese engineering from Nissan, with the insight into local relevance that Ashok Leyland brings to the table. It represents a very attractive value proposition to the small and medium businesses that it is targeted at. JV with John Deere The Company Ashok Leyland John Deere Construction Equipment Company Private Limited, incorporated in July 2009, as a 50:50 Joint Venture between Ashok Leyland and John Deere Construction & Forestry Company marks a fast growing market with state-of-the-art products. A 48-acre manufacturing facility at Gummidipoondi, on the outskirts of Chennai was inaugurated in October 2010.
Annual Report 2010-11 41
Annexure-D to Directors’ Report
MANAGEMENT DISCUSSION AND ANALySIS REPORT
The first product – the backhoe loader -- is undergoing field trials and is expected to be launched by third quarter of 2011-12. JV with Continental AG Leveraging Ashok Leyland’s market knowledge and Continental’s technology leadership, this JV aims to become an innovation centre for delivering automotive infotronics solutions at value price points. The JV displayed its products capability at Continental’s booth at the International Motor Show, IAA, Hanover and is currently in the process of developing a portfolio of products for mass application. Albonair GmbH Albonair GmbH, established with a vision of being a complete solution provider for reducing automotive emissions, has in the short period since inception, developed the complete solution for Selective Catalytic Reduction (SCR) and Urea Dosing System (UDS) conforming to Euro 4, 5 and 6 emission standards for commercial as well as passenger vehicles. Albonair has succeeded in securing orders from Global OEMs and is gearing to develop and deliver the same. Ashok Leyland Defence Systems Limited (ALDS) Ashok Leyland has a long standing relationship with Indian Army for supply of logistics vehicles. ALDS, a newly formed associate company, will provide increased focus to address the opportunities in the Indian and overseas Defence markets. Further ALDS has signed a Memorandum of Understanding with Krauss-Maffei Wegmann (KMW) GmbH, Germany, in order to develop advanced Defence systems for the Indian Defence establishment as well as other Defence forces worldwide. Leveraging this and other partnerships, ALDS is engaged in the development of tactical vehicles for Defence. Ashley Alteams India Limited (AAIL) The 50:50 JV partnership between Ashok Leyland and Alteams OY, Finland aims to be a world-class aluminium die-casting manufacturer and become a ‘partner of choice’ to their customers by providing innovative product solutions. The state-of-the-art foundry and machine shop at Cheyyar, Tamil Nadu, provides complete die-casting solutions with the latest technological expertise. Ashley Alteams is strongly backed by European technology and has an annual installed capacity of 7000 MT, with the capability to produce high pressure die-casting components ranging from 0.5 kg to 20 kg. In order to cater to the fast growing needs of Telecom customers, AAIL is setting up an Electroplating Project. AVIA Ashok Leyland Motors s.r.o. (AALM) AVIA Ashok Leyland Motors s.r.o., based in Prague, is part of Ashok Leyland since October 2006. AALM, offers the D Series trucks (consisting of 6T, 7.5T, 9T and 12T GVW models) that are marketed in the Czech Republic, Hungary, UK, Ireland, Slovakia and Spain. The economic recovery in Central Europe has helped AALM post higher sales number of diesel vehicles. In 2010, AALM launched the 7.5T and 12T vehicles in the Middle East market and its strategy of focused expansion into electric vehicles in supplier arrangement with Smith Electric, USA has begun to yield results, with several chassis for Electric trucks being exported to the USA. Defiance Technologies Limited Defiance Technologies Limited is a leading provider of Engineering, ERP and IT services to global customers leveraging the global delivery model. Headquartered at Chennai, Defiance has world-class development centres at Chennai and Bangalore in India, state-of-the-art testing facilities at Troy and Westland, Michigan and business offices in USA, Europe, Middle East, South Africa and
42 Ashok Leyland Limited
that could affect the Company’s business. value engineering and alternate sourcing to sustain profitability to the extent feasible. operational. Physical Risk: The Company has a comprehensive insurance coverage and breakdown coverage for all its electronic equipments to protect all its assets from such damages. Ashok Leyland’s associate company Albonair is working on competitive emission treatment systems. The Company has Annual Report 2010-11 43 . Environmental Risk: The Company is presently fully equipped to meet the environmental legislation prescribed by the Government for Commercial Vehicles. prioritise. Political Risk: Many of our target overseas markets suffer from political instability. Several initiatives on interest rates (both floating and fixed) have been taken in order to leverage the rate fluctuations. To address this issue. the leader in multidisciplinary simulation solutions that accelerate product innovation. not a separate function for specialists. Risk Management The Company has initiated a focused approach towards Enterprise Risk Management across the organisation based on the Committee of Sponsoring Organisations (COSO) framework to identify. your Company has undertaken a wide range of product cost reduction exercises through deep dives. Defiance become one of the first few companies in India to receive the AS 9100 Revision ‘C’ certification which is considered as the gold standard for Aerospace and Defence customers globally. Financial Risk: Unanticipated demand recession results in mismatch between production and sale. to help customers improve design development while minimizing software costs. safety norms for trucks and upcoming requirements for onboard diagnostics. analyse. airport and Benelux region. The Company has revised its working capital policy in order to minimize such risks. In 2010. Defiance has set up its European headquarters in Cologne in 2010. Rising material cost poses a major risk to profitability. your Company has the capability to add modules of capacity at short cycle times to meet demand increases. Your Company’s entry into the relatively less volatile Light Commercial Vehicles business in 201112 will further de-risk the business. C. across all functions and at all levels. Your Company has also proactively launched programmes with its strategic partners to develop power trains to meet upcoming emissions norms equivalent to Euro 5 and 6. Ashok Leyland has also ensured that its products under development meet all norms expected in the near future. your Company has built adequate manufacturing capacity to meet such increases.. because of the strategic advantage of its location in terms of access to roadways. etc. mitigate and monitor all the risks including strategic. The Company partnered with MSC Software Corporation. increase in interest rates and fuel prices could dampen demand to a certain extent. natural calamities.Annexure-D to Directors’ Report MANAGEMENT DISCUSSION AND ANALySIS REPORT India. industry and regulatory in nature. The Company also has a currency related policy to mitigate Foreign Exchange risks. In case of surge in demand. such as the bus body code. Your Company is addressing this through increased focus on export markets and on non-cyclical businesses such as spares. Risk Management is an integral part of management. war. To mitigate this risk. Defence and power solutions. Legislation will continue to put pressure on technology advancements resulting in higher investment and product cost. terrorism. which in turn causes strain on liquidity. The Company’s foreign exchange exposure has increased considerably on account of External Commercial Borrowings and increase in exports. These risks are mitigated by taking ECGC cover wherever necessary and also delivering vehicles against confirmed letters of credit. Though the Indian CV market continues to grow rapidly. With review of the production plan at regular intervals.
27 544.16 5.52 665. E.5 (78. authorisations and approval procedures.13 6.per vehicle. Financial Review Summary of Profit and Loss Account Rs. through its own Internal Audit Department. strategically decided to expand the scope on a modular manner to critical areas handling particularly IPR and / or sensitive information.000/.1 36.121. Internal Control Systems and their Adequacy: Given the nature of business and size of operations.68 3.0 (51.45 7.7 52.43 financial expenses 163. 329 Crores.71 70.18 53.30 Basic earnings per share (in Rs.15 .33 Total 11.0 49.11 548.315. 309 E Crores. are periodically reviewed and compliance ensured.80 exceptional item – VRs expenses Amortisation profit Before tax 801. the Company’s internal control system has been designed to provide for • ccurate recording of transactions with internal checks A and prompt reporting • dherence to applicable accounting standards and A policies • ompliance with applicable statutes.17 employee expenses 959.2) 52.244. Crores 2010-11 2009-10 inc / (dec)% Income sales (net of excise duty) 11.767.35 profit After tax 631.0 Revenues The Company’s revenues came through the following streams of business activities: • Vehicles: Income from vehicles was at Rs. The status of implementation of the recommendations is reviewed by the Committee on a regular basis and concerns.2 100. arising out of audit.836 Crores.098 Crores. policies and C management policies and procedures • ffective use of resources and safeguarding of assets E The internal control system provides for well documented policies / guidelines.71 other income 15. among the first auto majors in India to be certified under BS7799 in 2005. The summary of the Internal Audit observations and status of implementation are submitted to the Audit Committee of the Board of Directors.133. 9.7 46. 89.7 44.0) 49. As part of this strategy. a growth of 61% over the previous year level of Rs. D. largely due to capacity constraints and 44 Ashok Leyland Limited .current 111.0) 47. 6.deferred 59. carries out periodic audits at all locations and functions based on the plan approved by the Audit Committee and brings out any deviation to internal control procedures. • ngines: Revenue from engines reduced to Rs.331.42 204. your Company migrated to ISO 27001 during 2006 and expanded the scope to Advanced Engineering during 2007 and Business Continuity and Disaster Recovery site in 2010.) 4. The Company.117.10 423. are reported to the Board.0 101.04 Expenditure Material cost 8.93 598. The observations.9 31.80 tax provision . Considering the increase in input costs and operations aided by the legislation on emission requirements.66 Total 10.75 7.11 81.217.24 profit Before exceptional item 801.78 121.3 (100. the Company revised the prices on four occasions to register cumulative increase of about Rs.Annexure-D to Directors’ Report MANAGEMENT DISCUSSION AND ANALySIS REPORT activated a system monitored by centralised Treasury Department to mitigate adverse effects of currency/ interest rate fluctuations. a 6% drop over the previous year level of Rs. The increase in revenue was attributable mainly to a 47% growth in vehicle sale volumes in 2010-11.72 other expenses 819. Information Security and IPR protection initiatives Ashok Leyland.05 3. if any.26 depreciation 267.2 55.
6. • pare Parts and others: Income from spare parts S including sale of kits to Vehicle Factory.5 15.17 838.29 3. • ther expenses were higher by 37% primarily due O to higher incurrence in power. 818 Crores.230. Interest cost on these fresh loans.93 443.45) 7.77 2. mainly due to gain on sale of investments during previous year. mainly due to fresh acquisitions.26 2. Further.89 76.321. 133 Crores comprising of 133 Crore shares of Re.04 6. investments in joint ventures. 973 Crores. 460 Crores during the year to meet investments and capital expenditure. 2011 aggregated to Rs. • inancial expenses doubled to Rs. cost pressures were severe. • Staff costs: Employee expenses rose significantly in 2010-11 primarily due to increase in executive strength and enhanced compensation.5 17.97 1.0) 11.29 Capital Expenditure and Investments During the year.065.8 Sources of Funds shareholders’ funds Loan funds deferred Liability deferred tax Liability-net foreign currency Monetary item translation difference -net Total Application of Funds fixed Assets investments net current Assets Miscellaneous expenditure Total 4. 490 Crores towards capital expenditure.065 Crores.568. Total Shareholders’ funds as at March 31. The rest of the capital expenditure was towards capacity optimisation programmes in existing plants.321.89 89.065. mainly development of infrastructure. interest cost during the previous year was lower due to capitalization of interest amounting to Rs.321 Crores to Rs.962. an increase of 19% over the previous year level of Rs. 7.55 384.03 1.178. Other income registered a drop of Rs. facility creation and higher finished vehicle inventory. Jabalpur increased to Rs.203.4 (100. 3. The Company also incurred capital expenditure towards implementing a new ERP system. BALANCE SHEET Rs.7) 11. Annual Report 2010-11 45 . cabs.0 16.8) (16. Costs • aterial Cost: In the first half of 2009-10 the Company M managed to mitigate the impact of cost increases through pricing actions and value engineering. resulted in higher interest costs for the year. engine.8 277.93 7. cab.811. Capital Employed Total capital employed by the Company increased by 12% from Rs.31 326. 267 Crores D compared to Rs. etc. higher bonuses / exgratia and annual performance pay as well as the impact of long term wage settlement at the Ennore Unit. frame and chassis assembly at Pantnagar for setting up integrated manufacturing facilities as well as for development of new aggregates such as engines.96 3.76 4. relating to capital expenditure on Pantnagar.36 Crores. However. together with the full year impact of the interest on loans availed at the end of 2009-10.1 (28. In line with its funding policy. the Company borrowed fresh term loans to the extent of Rs. • epreciation for the year increased to Rs.54 (12. 164 Crores during F the year.991.04 6.963 Crores of which equity capital was Rs. crores 2010-11 2009-10 inc (dec) % 8. 204 Crores in the previous year primarily due to fuller utilization of Pantnagar plant in the current year. in the second half of 2009-10.8 3.668.00 4.Annexure-D to Directors’ Report MANAGEMENT DISCUSSION AND ANALySIS REPORT lower sales to telecom sector as explained in Para B above. fuel and maintenance costs in line with the higher production during 2010-11. Centralised Treasury Department is active in the money market to manage day-to-day investment of surplus funds and to raise short term funds as required and to optimize the overall cost of borrowings. the Company incurred Rs.16 5.1 each. 55 Crores.
083 Crores. 4. 167 Crores primarily due to conversion of loans given to associate companies into equity. better product mix and increased benefits consequent to increased volumes from Pantnagar. Liquidity The Company continued with the ‘cash and carry’ system of sales during the year. Similarly. 180 Crores in 2010-11.022 Crores as on March 31. Loans and Advances were lower by Rs. though the activity levels increased by 47% over previous year. the Company’s debts have been rated by CRISIL and ICRA. 460 Crores were raised to meet investing activities.(positive outlook) LAA. 2010 mainly due to increase in finished vehicles and production inventory. 3. 2011 at Rs. This has enabled the Company manage the increased liquidity requirements better. are invested. 591 Crores from its operations. Inventories increased to Rs. The Company managed to recover some portion of material cost increases sanctioned to the suppliers through pricing. 1.179 Crores despite increase in activity level by about 47%. After providing for taxes at Rs.18 per share in 2009-10 to Rs. 631 Crores. Profit before tax and exceptional items was Rs. These funds were utilized for capital expenditure and investments. 2010 mainly due to higher sales to and dues from State Transport Undertakings. Net Current Assets as on March 31. 2.(positive outlook) Short Term Loan p1+ (reaffirmed) A1+ (reaffirmed) Results of Operation The Company generated cash profits from operations after tax of Rs. UK in pursuit of its objective to become one of the top five bus manufacturers in the world. After meeting working capital requirements. Cash outflow for investing activities for FY 2010-11 amounted to Rs. Increase in inventory and receivables has necessitated additional requirement of funds. This is evident from the drop in cash and bank balances from Rs. additional costs to comply with emission standards were also recovered through pricing action. The earnings per share (EPS) increased by 49% from Rs. Profitability The Company improved its profitability during the year consequent to improvement in volumes in core business. the Company acquired 26% stake in Optare plc.185 Crores as on March 31. 1. 99 Crores in FY 2009-10. The Company manages its liquidity through rigorous weekly monitoring of cash flows and surplus funds. thus improving margins. if any. The Company managed the commodity price based cost increases during the year through savings from various cost reduction programmes.638 Crores as at March 31. 839 Crores compares well with previous year level of Rs. Presently. 519 Crores in 2009-10 to Rs.209 Crores as on March 31. The Company invested Rs.75 per share in the year under review. Receivables increased to Rs. During the year. 2011 from Rs. 460 Crores which are secured by a first pari passu charge created / to be created on certain immovable properties and movable assets. the Company availed term loans and non-convertible debentures totalling to Rs. profit after tax for the current year is Rs. 802 Crores. Fresh loans for Rs. 46 Ashok Leyland Limited . 2011 compared to Rs. 568 Crores as against an outflow of Rs. the Company registered a net cash inflow of Rs. The rating agencies have reaffirmed the Company’s ratings at FY 2009-10 level with revision in outlook from negative to stable and again to positive now which is as under: Agency cRisiL icRA Long Term fAA. mainly in units of mutual funds and in bank deposits.171 Crores (including deferred tax).1.Annexure-D to Directors’ Report MANAGEMENT DISCUSSION AND ANALySIS REPORT During the year. 1. 102 Crores in Hinduja Leyland Finance Limited during the year and made investments in JVs for LCV and in the JV for Construction Equipment.1.
albeit at a slower rate.090.98) profit from operations after tax (inc) / dec. With global economies recovering. your Company is confident of meeting the growing competition in the domestic market and improve its market share both in domestic and in international markets.92 1.63) With the economy still reasonably buoyant. equivalent to Rs.42) 591. Africa and CIS. Another year of good monsoon should act as a great fillip for the agricultural sector.Annexure-D to Directors’ Report MANAGEMENT DISCUSSION AND ANALySIS REPORT Dividend The Directors have recommended 200% dividend for the year 2010-11.38 591.64) (339.38 (350.net (567.082.41) (98. your Company is cautiously positive about the future.06 (684. 2011-2012 will be a year of growth and consolidation for Ashok Leyland in quest of the vision to be among the global top 10 in trucks and top 5 in buses in volume terms. in net Working capital net cash flow from operating activities (before exceptional item) net cash flow from operating activities payment for Assets acquisition .80 (491. 2 per share. opportunities are arising for Ashok Leyland to spread its global footprint beyond the SAARC countries to the growing markets of Asia. overall. On the domestic front. Therefore.09) (13.06 1.net cash flow from financing activities net cash inflow / (outflow) Looking Ahead other cash flow from investing activities . CASH FLOw STATEMENT the CV industry should be able to hold its growth trend in 2011-12. rising interest costs and diesel prices are going to be growth dampeners but since the fundamentals remain strong and the economy continues to be on a growth trajectory. Your Company is well placed and well equipped to meet demand spikes and also to meet the challenges of upgraded products compliant to stricter emission norms. crores 2010-11 2009-10 656.14 433. continued accent on infrastructure development and construction activities and growth across freight generating sectors augurs well.090. With the launch of the U Truck platform with improved aggregates like the Next Generation Cab and Neptune Engine.76) 123.31 430. Rs.21 1. Annual Report 2010-11 47 .
in all material respects. 48 Ashok Leyland Limited .3. Internal controls and compliances The company has taken proper and sufficient care for the maintenance of adequate accounting records as required by various Statutes. Going Concern In the opinion of the Directors. which include an assessment of the systems of internal controls and tests of transactions to the extent considered necessary by them to support their opinion. Internal Auditors. financial and accounting controls and financial statements. Directors have overall responsibility for the Company’s internal control system. the Company will be in a position to carry on its existing commercial vehicles / engines business and accordingly it is considered appropriate to prepare the financial statements on the basis of going concern.Annexure-E to Directors’ Report DIRECTORS’ RESPONSIBILITy STATEMENT AS PER SECTION 217(2AA) OF THE COMPANIES ACT. and reports significant issues to the Audit Committee of the Board. The system of internal control is monitored by the internal audit function. Krishnaswami & Rajan and M/s Deloitte Haskins & Sells in accordance with generally accepted auditing standards. Audit Committee and Statutory Auditors have full and free access to all the information and records as considered necessary to carry out their responsibilities. which encompasses the examination and evaluation of the adequacy and effectiveness of the system of internal control and quality of performance in carrying out assigned responsibilities. Audit Committee supervises the financial reporting process through review of accounting and reporting practices.S. 1956 Responsibility in relation to financial statements The financial statements have been prepared in conformity. with the generally accepted accounting principles in India and the Accounting Standards prescribed by the Institute of Chartered Accountants of India in a consistent manner and supported by reasonable and prudent judgements and estimates.2011 and of the results of operations for the year ended 31. Internal Audit Department interacts with all levels of management and the Statutory Auditors. Audit Committee also periodically interacts with Internal and Statutory Auditors to ensure quality and veracity of Company’s accounts. The Directors believe that the financial statements reflect true and fair view of the financial position as on 31. Maintenance of accounting records. Proper systems are in place to ensure compliance of all laws applicable to the Company.2011.3. which is designed to provide a reasonable assurance for safeguarding of assets. The financial statements have been audited by M/s M. reliability of financial records and for preventing and detecting fraud and other irregularities. All the issues raised by them have been suitably acted upon and followed up.
We accept overall responsibility for establishing and monitoring the Company’s internal control system for financial reporting and evaluating its effectiveness. Sridharan Chief Financial Officer Annual Report 2010-11 49 . to the best of our knowledge and belief. which encompasses the examination and evaluation of the adequacy and effectiveness. illegal or violative of the Company’s code of conduct. Vinod K Dasari. The financial statements have been prepared in conformity. There are. and reports significant issues to the Audit Committee of the Board. no transactions entered into by the Company during the year which are fraudulent. 2. there was no such instance. Managing Director and K. applicable laws and regulations. with the existing Generally Accepted Accounting Principles including Accounting Standards. Chief Financial Officer of Ashok Leyland Limited. in all material respects. May 19. c) instances of significant fraud of which we have become aware of and which involve management or other employees who have significant role in the Company’s internal control system over financial reporting. 4. We have reviewed the financial statements for the year and that to the best of our knowledge and belief: a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading. Internal audit works with all levels of management and Statutory Auditors. 2011 Chennai Vinod K Dasari Managing Director K. The Statutory Auditors and Audit Committee are appraised of any corrective action taken or proposed to be taken with regard to significant deficiencies and material weaknesses. 3. b) significant changes in accounting policies during the year. certify that: 1.Annexure-G to Directors’ Report CERTIFICATION By MANAGING DIRECTOR AND CHIEF FINANCIAL OFFICER TO THE BOARD We. We have indicated to the Auditors and to the Audit Committee: a) significant changes in internal control over financial reporting during the year. b) these statements present a true and fair view of the state of affairs of the Company and of the results of operations and cash flows.Sridharan. Internal audit function monitors the internal control system for financial reporting. However.
50 Ashok Leyland Limited .
finAnciAL stAteMents Annual Report 2010-11 51 .
52 Ashok Leyland Limited .
the aforesaid financial statements read with the Statement on Significant Accounting Policies and Notes to the Accounts. give the information required by the Act. 2011.S. (ii) in the case of the Profit and Loss account. 2011. and taken on record by the Board of Directors. An audit includes examining. c. Krishnaswami & Rajan Chartered Accountants Registration No. as required by law. Laxminarayan Partner Membership No. 4. on a test basis. 1956. to the best of our knowledge For M. These financial statements are the responsibility of the company’s management. of the profit for the year ended on that date. Rajan Partner Membership No. in our opinion and to the best of our information and according to the explanations given to us. we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 2003 issued by the Central Government in terms of Section 227(4A) of the Companies Act. in our opinion. 2011. 117366W R. signed by us under reference to this report. the Profit and Loss Account and the Cash Flow Statement for the year ended on that date. 3. as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.AUDITORS’ REPORT TO THE MEMBERS OF ASHOK LEyLAND LIMITED 1. 2. We conducted our audit in accordance with auditing and assurance standards generally accepted in India.4059 May 19. the financial statements dealt with by this report are in agreement with the books of account.33023 Annual Report 2010-11 53 . evidence supporting the amounts and disclosures in the financial statements. d. 2011 from being appointed as a director in terms of Section 274 (1)(g)of the Act. Further to our comments in the Annexure referred to in paragraph 3 above. we have obtained all the information and explanations. in conformity with the accounting principles generally accepted in India: (i) in the case of the Balance Sheet. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 2011 Chennai and belief. of the cash flows for the year ended on that date. As required by the Companies (Auditor’s Report) Order. proper books of account. in our opinion. 1956 (the Act). 01554S M. of the state of affairs of the Company as at March 31.K. On the basis of written representations received from the directors as on March 31. in the manner so required and also give a true and fair view. we report that none of the directors is prima facie disqualified as on March 31. the aforesaid financial statements comply in all material respects with the applicable Accounting Standards referred to in Section 211(3C) of the Companies Act. we report as follows: a. b. We have audited the attached Balance Sheet of ASHOK LEyLAND LIMITED (“the Company”) as at March 31. For Deloitte Haskins & Sells Chartered Accountants Registration No. e. Our responsibility is to express an opinion on these financial statements based on our audit. (collectively referred to as the financial statements). An audit also includes assessing the accounting principles used and significant estimates made by management. which. were necessary for the purposes of our audit. 5. and (iii) in the case of the Cash Flow Statement. both annexed thereto. have been kept by the Company so far as appears from our examination of those books.
diesel engines. on the basis of our examination (ii) (Referred to in paragraph 3 of our report of even date on the accounts for the year ended March 31. 1975 apply. 9. is reasonable having regard to the nature and value of its assets. cess and other material statutory dues as applicable with the appropriate authorities during the year. which. (ii) the procedures of physical verification of the inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. 5. we have broadly reviewed the books of account and records maintained by the Company relating to the manufacture of commercial vehicles. secured or unsecured. 4. and no material discrepancies have been noticed on such verification. (i) the Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. there are no dues of income tax. (i) the Company is regular in depositing undisputed statutory dues including provident fund. employees’ state insurance. 1956. and on the basis of such checks as we considered appropriate and according to the information and explanations given to us. Details of dues towards sales tax.ANNExURE TO THE AUDITORS’ REPORT As required by the Companies (Auditor’s Report) Order. 7. 2003 (CARO) issued by the Government of India in terms of Section 227(4A) of the Companies Act. of the books and records of the Company. 2. sales tax. in our opinion. excise duty. (i) inventories have been physically verified during the year by the management at reasonable intervals. customs duty. (iii) the Company is maintaining proper records of its inventories and no material discrepancies were noticed on physical verification. service tax. gensets and auto components pursuant to the order made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the Act and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. the Company has neither granted nor taken any loans. Further. we report that: 1. 8. (ii) the fixed assets are being physically verified under a phased programme of verification. excise duty. 3. there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for sale of goods and services. the Company has an internal audit system commensurate with its size and nature of its business. 6. service tax and cess that 54 Ashok Leyland Limited . the Company has not accepted any deposits from the public to which the provisions of Section 58A and 58AA or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules. to / from companies. wealth-tax and customs duty which have not been deposited on account of any dispute. investor education and protection fund. to the best of our knowledge there are no contracts or arrangements referred to in Section 301 of the Act which need to be entered in the register maintained under the said section. income tax. (iii) the Company has not disposed off substantial part of its fixed assets during the year. 2011 of Ashok Leyland Limited). we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system. firms or other parties covered in the register maintained under Section 301 of the Act. wealth tax.
01554S M.33023 Annual Report 2010-11 55 . Rajan Partner Membership No. the Company has not defaulted in repayment of dues to any financial institution. no fraud of material significance on or by the Company has been noticed or reported during the year. bank or debenture holders during the year.384. 21. 2011 Chennai For Deloitte Haskins & Sells Chartered Accountants Registration No.4059 May 19. applied for the purpose for which they were obtained. the Company has not raised any money by public issues during the year. mutual benefit fund / societies are not applicable to the Company. prima facie.419. the Company is not dealing or trading in shares. the Company does not have any accumulated losses as at March 31.23 sales tax 1. the term loans availed by the Company were prima facie.70 commissioner of central excise (Appeals) 1. securities. 15. the Company has maintained adequate documents and records where it has granted loans and advances on the basis of security by way of pledge of shares. the terms and conditions of guarantees given during the year by the Company. Lakhs nature of dues dues forum where the dispute is pending Amount stayed not included in dues 1.12 tribunal 24. debentures and other investments. 12.ANNExURE TO THE AUDITORS’ REPORT have not been deposited on account of dispute are as stated below: 13. 11. and cess thereon – – 17.29 Appellate deputy / Additional commissioner 15. the provisions of any special statute applicable to a chit fund. Laxminarayan Partner Membership No. 230. (Referred to in paragraph 3 of our report of even date on the accounts for the year ended March 31. 16.K. 117366W R. funds raised on shortterm basis have.09 – excise duty. debentures and other securities. 2011 of Ashok Leyland Limited). considering the size and nature of the Company’s operations.S. For M. 2011 and has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. the Company has created securities / charges in respect of debentures issued and outstanding. on an overall examination of the financial statements of the Company. for loans taken by others from banks or financial institutions. service tax and cess thereon 10. nidhi.31 tribunal (cestAt) 18. Rs. 14. the Company has not made any preferential allotment of shares during the year to any party. are not prima facie prejudicial to the interest of the company. not been used for long-term investment. Krishnaswami & Rajan Chartered Accountants Registration No.284.66 tribunal (cestAt) 697. Accordingly the provisions of clause 4 (xiv) of the CARO are not applicable to the Company. 19. 20.
654.82.999.36.49 1.69.12 and notes to the accounts form part of this Balance sheet. 01554s M.892.38.43 6.87 2.453.K.77 49.69 4.63.85 38.81 71.89 32.303.32.63.05 184.108.40.206 1.00 1.72 1.955.869.504.7 1.39 3.57 36.33 17.10 1.8 1. 117366W R. for M. Lakhs 2010 Rs.72 79.5 6.59.890.303.96.17.05 96. for and on behalf of the Board K.220.127.116.11 3.615.01) 6.724.42 3.KRisHnAsWAMi & RAJAn Chartered Accountants Chartered Accountants for deLoitte HAsKins & seLLs Registration no.15 51.05.1 18.104.22.168.18 7.596.14 4.075.824. RAJAn Partner Partner May 19. loans and advances inventories sundry debtors cash and bank balances Loans and advances Less: Current liabilities and provisions Liabilities provisions Rs.24.40 83.97 4.12 (to the extent not written off or adjusted) Total statement on significant accounting policies.50 2.892. 2011 2011 schedule Sources of funds Shareholders' funds capital Reserves and surplus Loan funds secured loans unsecured loans Deferred liability Deferred tax liability .20.18.06.34 1.794.2 13.48 8.92 22.214.171.1246.18.63 3.79 1.52 2.388.53 126.96.36.1991. Lakhs Rs.6 1.18 35.05 2.3 1.02.897.796.23 4.75 1. schedules 1.69 (1.sesHAsAyee Vinod K dAsARi Managing Director this is the Balance sheet referred to in our report of even date.52.968.907.296.43 Net current assets Miscellaneous expenditure 1.20.504. sRidHARAn Chief Financial Officer A.952.9 1.79 3.06.232.LAxMinARAyAn Registration no.68 6.net Total Application of funds Fixed assets Gross block Less: depreciation net block capital work-in-progress Investments Current assets.61 1.245.67 44.1 to 1.73 2.s.net Foreign currency monetary item translation difference .71 517.875.572.R.37 1.15 2.032.360.046.52 1.56.863.BALANCE SHEET AS AT MARCH 31.01.175.992.379.229.389. 2011 chennai 56 Ashok Leyland Limited . Lakhs 1.81.13.03.69 – 7.827.809.68 1.21 13. cHAndRAseKHARAn Executive Director & Company Secretary Chairman dHeeRAJ G HinduJA Executive Vice Chairman R.156.45 188.8.131.522.188.13 431.11 3.45 4.
63 327.00) 81. Lakhs 7.66 (5.PROFIT AND LOSS ACCOUNT FOR THE yEAR ENDED MARCH 31. schedules 2.788.110.67 – (10.00 42. 2.04 6. RAJAn Partner Partner May 19.K.00) 1.10 184.108.40.206 6. Lakhs 2010 Rs.589.744.15 54.115.606.87.4 2.5 K.471.2 2. Lakhs 12.33 9. amortisation and impairment financial expenses Profit before exceptional item Exceptional item Voluntary retirement scheme compensation amortised Profit before tax provision for taxation .90 1.77 4.R.366.54 7.533.5 and notes to the accounts form part of this profit and Loss account.69 7.13 20.955.34 19.General reserve proposed dividend corporate dividend tax thereon Balance profit carried to Balance Sheet earnings per share (face value Re.57 26.74 62.40 80. 2011 2011 schedule Income sales and services Less: excise duty other income Expenditure Manufacturing and other expenses depreciation.179.19 416.98 416. 2011 chennai Annual Report 2010-11 57 .129.16 26.015.124.14 10.79 8.187. for M.316.06.s.00) (10.Basic (in Rs.00 63.935.96 54.1 Rs.93 57.13.477.014.000.98 3.75 Rs.18 2.sesHAsAyee Vinod K dAsARi Managing Director this is the profit and Loss account referred to in our report of even date.93 11.041.1) .00 5.250.1 to 2.179.11. sRidHARAn for and on behalf of the Board Chief Financial Officer A.48.24.31.debenture redemption reserve .804.044.744.000.78 11.29 57.43 11.48 48.07 3.52 4.259.05 7.113. 117366W R.09. 01554s M.LAxMinARAyAn Registration no.515.367.710.68 97.28 75.770.33.410.743.230.48 – 12.KRisHnAsWAMi & RAJAn Chartered Accountants Chartered Accountants for deLoitte HAsKins & seLLs Registration no.76.deferred tax Profit after tax Balance profit from last year transfer from / (to) .314.93 80.360.current tax (Refer note 15 to the Accounts) .) statement on significant accounting policies.304.3 2. cHAndRAseKHARAn Executive Director & Company Secretary Chairman dHeeRAJ G HinduJA Executive Vice Chairman R.
43 264.net diminution in value of investments Operating profit before working capital changes Adjustments for changes in : inventories debtors Advances current liabilities and provisions Cash generated from operations income tax paid Net cash flow from operating activities Cash flow from investing activities payments for assets acquisition proceeds on sale of fixed assets proceeds on sale of division purchase of investments sale / redemption of investments income from investments .026.08 81.05) 36.02 458.35) (16.49) 137.306.69 (15.29 (14.909.35 1.83 (90.interest .32) (188.060.35 80.516.09) 1. Lakhs Cash flow from operating activities Profit before tax Adjustments for: depreciation.91 (91.69 74.41 17.260.95) (12.45) (144.242.23.002.066. Lakhs 54.91) (57.42 (2.33) 363.772.26) 250.121.477.477.06) (220.127.116.110.27 26.10 1.268.net of capitalisation other amortisations foreign exchange (gains) / losses interest expense net of capitalisation interest income income from investments profit on disposal of fixed assets / long term investments .29) (5.89) 19.138.09.934.472.743.32) (264.00 (19.32 32.70) 58 Ashok Leyland Limited .234.822.50) 1.21 (8.65 (1.64 3.04) (390.dividend changes in Advances (net) Net cash flow used in investing activities (35.08 1.179.068.222.743.48 20.610.006.13) 1.928.164.645.70 390.57) 9.75 (2.22 668.93 2010 Rs.225.79 860.56) (8.CASH FLOw STATEMENT FOR THE yEAR ENDED MARCH 31.542.316.42) 59.532.660. amortisation and impairment .536.12 (69. 2011 2011 Rs.101.24) 74.47 (30.
36) (1.514.Raised .84 Notes to the cash flow statement components of cash and cash equivalents: cash and bank balances.536.331.29) 12.91 (14. 2011 2011 Rs.K.00 (8.998.000.26) 51.53 17.69 51. 117366W R.551.535. 2011 chennai Annual Report 2010-11 59 .KRisHnAsWAMi & RAJAn Chartered Accountants Chartered Accountants for deLoitte HAsKins & seLLs Registration no.564.53 43.50 (0.26) 2010 Rs.535.net 17.537. for M. sRidHARAn for and on behalf of the Board Chief Financial Officer A.269. RAJAn Partner Partner May 19.822.62) (33.423.52) (15.R.601. 01554s M.50 (9.41) (14.LAxMinARAyAn Registration no.28) (15. Lakhs Cash flow from financing activities Long term borrowings . Lakhs 52.sesHAsAyee Vinod K dAsARi Managing Director this is the cash flow statement referred to in our report of even date.27 (33.Repaid debenture / Loan raising expenses paid interest paid .86) (23.363. cash credit excluding those relating to unclaimed dividend unrealised foreign exchange loss .CASH FLOw STATEMENT FOR THE yEAR ENDED MARCH 31. cHAndRAseKHARAn Executive Director & Company Secretary Chairman dHeeRAJ G HinduJA Executive Vice Chairman R.84 8.97) 51.12) (69.64) 17.020.318.86) (21.535.998.020.578.42 43.53 K.net dividend paid and tax thereon Net cash flow from financing activities Net cash inflow / (outflow) Opening cash and cash equivalents Closing cash and cash equivalents Net increase / (decrease) in cash and cash equivalents 46.27 51.s.537.
on the asset's revised carrying amount. Depreciation / amortisation is provided on a pro-rata basis from the month the assets are put to use during the financial year. if any. is calculated on the respective revalued amounts. c) Buildings. Other fixed assets. Cost of fixed assets is net of eligible credits under CENVAT / VAT Scheme. Cost of initial spares and tools is capitalised along with the respective assets. 1. Interest and other related costs. where the cost exceeds Rs. 2.1. 3.STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES 1. 1. Actual results could vary from these estimates and any such differences are dealt within the period in which the results are known / materialize. Expenditure directly related and incidental to construction are capitalised upto the date of attainment of commercial production.2 below. including assets given on lease and assets in leased premises / customer premises. as below. 2. Exchange differences are capitalised to the extent dealt with in para 5. is capitalised. 1. 2. In respect of assets sold or disposed off during the year. over 40 years or the period of the lease. plant and machinery (except assets subject to impairment) and other assets. whichever is less. disclosure of contingent liabilities and reported amounts of revenues and expenses for the year. 2. 10. on straight line basis: a) Leasehold land. including amortised cost of borrowings attributable only to major projects are capitalised as part of the cost of the respective assets.00. Assets are depreciated / amortised.000 and the estimated useful life is two years or more. d) Assets subject to impairment. Estimates are based on historical experience. Use of estimates The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements. over their estimated useful lives or lives derived from the rates prescribed in Schedule XIV to the Companies Act. Investments Long term investments are stated at cost less provision for diminution other than temporary. including intangible assets and assets given on lease. over its remaining useful life. where applicable and other assumptions that management believes are reasonable under the circumstances.3. over their estimated useful life. whichever is lower and in the case of intangible assets.1.2. Current investments are valued at lower of cost and fair value. depreciation / amortisation is provided till the month of sale or disposal of the assets.000 and below. 1956.2. b) Leasehold land and buildings subject to revaluation. 60 Ashok Leyland Limited . over the balance useful life as determined by the valuers in the case of buildings and as per (a) above in the case of land. Accounting convention Financial statements are prepared in accordance with the generally accepted accounting principles including accounting standards in India under historical cost convention except so far as they relate to revaluation of certain land and buildings. Fixed assets and depreciation / amortisation Cost of all civil works (including electrification and fittings) is capitalised with the exception of alterations and modifications of a capital nature to existing structures where the cost of such alteration or modification is Rs.
5. raw materials and components: on monthly moving weighted average basis. 6. Gains and losses on certain forward contracts designated as effective Cash flow hedges as per Accounting Standard 30 . Amortisation of deferred expenditure Expenditure incurred on issue of debentures / raising loans is amortised over the period of such borrowings. Income / expenditure of overseas branches are recognized at the average rate prevailing during the month in which transaction occurred. cost includes applicable production overheads.2. 4. 5. 5.“Financial Instruments” are recognised in the Hedge Reserve Account till the underlying forecasted transaction occurs.2.1. Foreign currency transactions and derivatives Foreign currency transactions are recorded at the rates prevailing on the date of the transaction. insofar as it relates to acquisition of depreciable assets are adjusted to the cost of the assets. Monetary assets and liabilities in foreign currency are translated at closing rate. Exchange differences on translation or settlement of long term foreign currency monetary items (i. In respect of works-made components. Revenue recognition Revenue from sale of products is recognised on despatch or appropriation of goods in accordance with the terms of sale and is inclusive of excise duty and export incentives. finished / trading goods: under absorption costing method.e. whichever is less. 5. Inventories Inventories are valued at lower of cost and net realisable value. but net of incentive on sales including Annual Report 2010-11 61 . Cost of patterns and dies is amortised equally over five years. 7. 4.3. Cost includes taxes and duties and is net of eligible credits under CENVAT / VAT Schemes. spares. Surplus / obsolete / slow moving inventories are adequately provided for. 4. Gains and losses on all other derivatives (including forward contracts not designated as Cash flow hedge) are recognised in the Profit and Loss Account.5. 5. 2011.4.6. Premium paid on prepayment of any borrowing is amortised over the unexpired period thereof or sixty months. consumable tools.STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES 4.1. Premium or discount on forward contracts is amortized over the life of the contract.3.4. these are accumulated in “Foreign currency monetary item translation difference account” and amortised by recognition as income or expense in each period over the balance term of such items till settlement occurs but not beyond March 31. Exchange differences arising on settlement or translation of monetary items other than those mentioned in para 5. whose term of settlement exceeds twelve months from date of its origination) at rates different from those at which they were initially recorded or reported in the previous financial statements. cost being ascertained on the following basis: Stores. 5. Investments in equity capital of companies registered outside India are carried in the Balance Sheet at the rates prevailing on the date of the transaction. 5. In other cases. Work-in-progress. 4.2 below are recognized as income or expense in the Profit and Loss Account.
Research and Development Costs Expenditure on the design and production of prototypes is charged to revenue as incurred. 10. Product development costs. Post-employment benefits and other long term employee benefits Defined contribution plans: Company’s contribution to provident fund. Revenue from services is recognised in accordance with the specific terms of contract on performance. Deferred tax assets on unabsorbed depreciation and carry forward of losses are recognised only to the extent there is a virtual certainty of its realisation. Termination benefits Compensation under voluntary retirement scheme is amortised over lesser of thirty six months and the period from incurrence of expenditure to March 31. Government grants Grants in the form of capital / investment subsidy are treated as Capital reserve. being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.3. rebates and discounts. Employee benefits Short term employee benefit obligations are estimated and provided for. 8. Deferred tax Deferred tax is recognised on timing differences. Defined benefit plans and compensated absences: Company’s liability towards gratuity. including knowhow developed / acquired. 10. 10. incurred on new vehicle/ engine platforms. superannuation fund. 2011. 10. Revenue arising due to price escalation claim is recognised in the period when such claim is made in accordance with terms of sale. 11.2. variants on existing platforms and aggregates are recognised as Intangible assets and amortised. Actuarial gains and losses are recognised in revenue. 9. Product warranties Provision for product warranties is made for contractual obligations in accordance with the policy in force and is estimated for the unexpired period. other retirement benefits and compensated absences are actuarially determined at each balance sheet date using the projected unit credit method. 62 Ashok Leyland Limited . employee state insurance and other funds are determined under the relevant schemes and / or statute and charged to revenue. Export incentives and incentives in the nature of subsidies given by the Government are reckoned in revenue in the year of eligibility.1. 12.STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES commission.
45.88.86.00.99 (2010 : 2.08.00.18.880 (2010: 1.44 13.57 3.57 3.669) Global depository receipts equivalent to 16.31.23. 6.410.940) equity shares of Re.00.410.417.04 13.305.17.303.44. 1.1 (2010: Re.695 34.231.88.020) equity shares of Re 1 (2010: Re.43 5.46. 3.31. holds 18.104.22.168 3.57.117) equity shares of Re.940) equity shares of Re.070) Equity shares.1 (2010: Re.240) equity shares of Re.303.00 2010 Rs.43 5.1(2010: Re.94.712) equity shares and 54.98.43.000.22.214.171.124.17.1) each 20.231.00.880) Equity shares were allotted under an agreement without payment being received in cash.38 0.231.417. 2011 2011 Rs.695) equity shares of Re 1 (2010: Re.00 20.04 13.245.110 (2010: 6.940 32.94 1.410.110) Equity shares were allotted as fully paid up by way of bonus shares by capitalisation out of General reserve and from Securities premium account. Lakhs Of the above.240 14.1 (2010: Re.303.43.000 Issued a) b) c) d) 52.57 3.99 5.1) each issued by way of conversion of debentures (2010: 32.44.1) each issued through Global depository receipts (2010: 14.57.1) each (2010: 34.1) each issued by way of conversion of foreign currency convertible notes (fccn) Add: forfeited shares 1.42 3.47.1 CAPITAL Authorised 2.1 (2010: Re.410.47.417.243.00.44.417.303.070 (2010: 16.42.44 13.117 (2010: 52.08.42 1.1 (2010: Re.17.23.000) equity shares of Re.94 5.42.020 34.44. Hinduja Automotive Limited.231.36.117 (2010: 52.240) equity shares of Re.57.44 13.712 (2010: 51.940 32.00.94.31.10.SCHEDULES ANNExED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.1) each issued through Global depository receipts (2010: 126.96.36.1995.1 (2010 :Re.000.1) each issued by way of conversion of debentures (2010: 32.1) each issued by way of conversion of foreign currency convertible notes (fccn) Subscribed a) b) c) d) 52.117) equity shares of Re.57.240 14.44 13.10.1) each (2010: 34. 188.8.131.529 (2010: 54.38 0.00.00. Annual Report 2010-11 63 .43 3.57 3.36.43 3. Lakhs 1.42. the holding company. 1.43 1.243.86.
52 3.00 416.33 (33.2 RESERVES AND SURPLUS Capital reserve As per last Balance sheet Revaluation reserve As per last Balance sheet Less: transfer to profit and Loss account (Refer note 3. a) debentures and term loans from banks aggregating Rs.422.30.00 2. 2015 36.118.33 36.000.68) (129.33.14) (96.744.33) 3.000. 1.6184.108.40.2066. 6.000.3 SECURED LOANS debentures Long term monetary liabilities in foreign currency – external commercial borrowing from bank – exchange loss on translation term loans from banks 36.666.00 1.033.000. 2014 and 2015 AL 13 7.000.00 october 31. 2013 AL 14 7.000 lakhs (2010: Rs.net (Refer note 11.74 1.226.00 134. b) 64 Ashok Leyland Limited . 4.09 2.66 5.911.36.75 80.253.42 lakhs (2010: Rs. 3.7 (b) to the Accounts) transfer to General reserve on sale of asset deletion occasioned on extinguishment of asset Loss on disposal of revalued asset Securities premium As per last Balance sheet Debenture redemption reserve As per last Balance sheet Add: transfer from profit and Loss account Less: transfer to profit and Loss account General reserve As per last Balance sheet Add: transfer from profit and Loss account transfer from Revaluation reserve on sale of asset Hedge reserve As per last Balance sheet Add: unrealised gains / (losses) on cash flow hedges .75 16.66 69.118.490.317.69 10.66 3.67 september 17.33 10.000.000.79 (3.685.75 lakhs (2010: Rs.896.000.39 1.50 1.000. Lakhs AL 11 1.66 4.67 lakhs) due within 12 months.453. 2010 AL 12 15.60 89.000. 2.82.229. 3.992.229.00 79.40 89.53.982.44 2.01 50. 2012. Lakhs 89.67 4. debentures are to be redeemed at par in equal installments.64 4.455.000.583. Lakhs 1.82) 75.67 1.98 3.18. 2013.06 4.00 16.00 71.00 July 22.253.317.SCHEDULES ANNExED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.229.10 22.64 29.00 July 22.250.486.66 9.572.balance in Profit and Loss account 2010 Rs.50 1.01 lakhs) is secured by a first charge on the Aircraft of the company.000.490. as stated below: debenture 2011 2010 dates of Redemption series Rs.67 lakhs) are secured by a first paripassu charge created / to be created on certain immovable properties and movable assets of the company. 2011 2011 Rs.40 2.47 134.166.83 89.66 4.00 July 22.166.68 1.33 (33. Lakhs Rs. 2.2 to the Accounts) Surplus .33 416.00 69.033. 2014 AL 15 7.00 15.19 59. external commercial borrowing from bank aggregating to Rs. 2011.68 4.67 Loans include Rs.33.666. cash credit facility is secured by a first charge on certain movable assets and goods-in-transit and book debts (excluding deferred receivables). 66.14) 57.666.156.
56 0.009.fittings and equipment 102.376.379.27 88.61 lakhs) Land and Buildings.632.92 42.52 – 2.29.55 Previous year 4.028. A portion of buildings in Bhandara revalued at Rs.44 lakhs.05 8.582.32 3.20. 9.39 601.75 687.75 1.39 36.62 1.34 lakhs (2010: Rs.40.21 711.59 technical knowhow .90 1. Annual Report 2010-11 65 .757. This valuation superseded the previous valuation done as at December 31.459.71 .344.13 292.02 2.44 3.99.486.82 76. Lakhs 1.21.16 6.304.72 126. 14.23 1.446. Rs.346.596.567.455.703. Lakhs 1.plant and machinery . 8.16 furniture.51 capital work-in progress 1.748.80 1.000. 879.717.108. 1.760.92 1.11.42 lakhs (2010: Rs. Additions to fixed assets and capital work in progress include: a) Exchange gain of Rs.757. 2011 2011 Rs.00 220.127.116.113.188.20 6.741.748. title for which is yet to be transferred to the company. 950.42 .955.01.00 lakhs is on a land.632.24 3.27 lakhs) and c) Other expenses capitalised Rs.Leasehold land 126.318.382.98 307. The amount of increase on such revaluation was Rs.48 205.567.53 9.549. Depreciation / amortisation / impairment for the year is disclosed in Schedules 2.087.66 4.757.4 UNSECURED LOANS Long term monetary liabilities in foreign currency – external commercial borrowings from banks – exchange loss on translation interest free sales tax loans Loans and advances from – Banks – others of the above.175.84. on the governing principles of current cost.61 56.583.79 4.050.505.31 65.80 1. 2.71 2.22.Acquired 8.38 lakhs (2010: Rs.43 125.613.03.16 Vehicles and aircraft 13.337.38 lakhs (2010: Rs.69 1. 1.102. Nil).84 7.146.97 4.82 .5 FIXED ASSETS GRoss BLocK (cost / VALuAtion) descRiption 01.36 2. Cost of Buildings as at March 31.04.21 1.51.78 plant and machinery 3.00 5.Leasehold 40.188.81 1.67 710.123.792.52 2.51 37. 0.703.76.37 2.796.51 lakhs (2010: Rs.03.3(C) and 2.809.43 4. Additions to Land .511.21 51.Freehold include Rs. 2009 after considering depreciation / amortisation upto that date as per external valuer’s report.21 2.78 depReciAtion / net BLocK AMoRtisAtion / iMpAiRMent Upto upto 2011 2010 31.64 5.446.05.132.14.24 14. 2.843.992.48 5. 10.2010 .82 4. amount due within 12 months – Long term monetary liabilities in foreign currency – interest free sales tax loans – Loans and advances from .59 1.44 13.73 14.37 35.72 34.77 1.fittings and equipment 19.70 (5. Lakhs Land . 4.56 6.21 7.418.87 2.36.84 .windmills 5.93 12.2011 31.97 85.00.97 4.292.Acquired 5.828. 1984.41 .41 805.10 lakhs (2010: Rs.37 68. 3.442.98 Rs.00 2. Consequent to the cancellation of lease in respect of windmills during the year.504.297.76.907.424.70) .395.3.developed .703.27.63.46 1.10 5.49 240.293.72 3.SCHEDULES ANNExED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.66 41.24.446.70 2.67 9. b) Rs.49 763.01.2010 Additions deductions 31. 132.furniture.60 18.104.22.168 35.42 lakhs (2010: Rs.60 .21.913.19 .389.050.05 4. 5.13 .50 149.863.others 1.317.748.787. 3.094.Buildings 805.76.18 4.09.47 20.51 37.420.814.50.980. other than those given on lease and installations.2011 2010 Rs.developed 2.4 to the Profit and Loss account.05 6.27 38.960.14.96 6.57 14.316. .733.714.39 51.50 3.675. title for which is yet to be transferred to the company.82 1.34 2.052. 2011 includes: a) Rs.38.34 lakhs) b) Borrowing cost of Rs.934.42 lakhs) being cost of shares in Housing Co-operative Society representing ownership rights in residential flats and furniture and fittings thereat.04.668. 3.84 (93.396.839.89 22.214.171.124.00 8.79 132.81 - 2.949.499.50 125.691. 3.81.38 lakhs) representing cost of residential flats including undivided interest in land.freehold 76.45 4.536.24 17. Buildings include installations of gross value Rs.19 557.12) Buildings 1. were revalued as at March 31.78 intangible assets computer software .77 Assets given on lease: .232.155.93 lakhs).93.39 .447. 5.71 192. 7.70 lakhs has been reclassified from assets given on lease to Plant and Machinery.33 748.08 57.894. 175.145.179.
00 1.26 1.33 2.000 30.500.45.500 34.000 1.00.58 720.04.236.000 irizar tVs Limited 33.698 400 1.26 10.08.025.567 Ashok Leyland John deere construction equipment company private Limited 126.96.36.199 0.05 4.27 500.00 305.18 5.00.75 457.92.000 83. 1 million each icici Bank Limited # 20 5) National Savings Certificate of the face value of Rs.00.08.25. Limited (Rs.231 indusind Bank Limited # 1.500 Ashley Bio-fuels Limited 75.00 1.000 4) Non convertible redeemable bonds of Rs.50.56 0.00.04.000 14.00.00.500 45. 10 each Ashley Holdings Limited 1.100 each Ashley transport services Limited 6.615.57.05 4.07 2. 10 each Lanka Ashok Leyland Limited 10.20. 2011 1.000 20 - 0.61.23. 0.56 0.705 nissan Ashok Leyland technologies Limited 2.92.82 16.36 147.00 1.SCHEDULES ANNExED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.46 2.164.50 5.57.136. partly paid-up Adyar property Holding co.000 2.000 2.18 3.50.500.32.068. uK 19.5188.8.131.52.166.400 7) Equity shares of US Dollars 0.00 838.326.000 Ashley Holdings Limited 14.52 123.000 9) Equity Shares of Pence 5 each optare plc.000 34.793 Hinduja Leyland finance Limited 10.000 5) Ownership interest in share capital in Czech Koruna Avia Ashok Leyland Motors s.000 Ashok Leyland defence systems Limited 17.750 3.000 1.00 1.000 5.00 200.828 Other than trade 1) Equity shares of Rs.00.430.00 579.353.12. 10 each Albonair (india) private Limited 40.26 1.924.45 2.70. 100 each.50. Lakhs 400. inc.00.70.77.000 47.00 488.76 4.762 defiance technologies Limited 3.24.029 icici Bank Limited # 24.22.68 600.500 20.24 14.67 1.029 24.41.40 600.05.000 Gulf Ashley Motor Limited 5.40 2.50 lakh Less: provision for diminution in value 2011 Rs.50 33.00 2.06 10.500 Ashok Leyland project services Limited 34.48 1.70.920.500. Lakhs nos 2010 Rs.50.06 10.550.79. usA 49 8) Equity shares of Euro 1 each Albonair GmbH 96.231 184.108.40.206 Ashok Leyland nissan Vehicles Limited 16.50 1.664 50.332 25. 65 paid up) 400 3) 2 % Non-Cumulative Non-Convertible Redeemable Preference shares of Rs.37 0.52 9.75 14.24 4.55.00 488.210.500 Ashley investments Limited 14.500.00. 900) 100 Hinduja Global solutions Limited # 2.000 Ashley Alteams india Limited 3.16 2. 100 each Hinduja foundries Limited 25.r.50 691.00 3.30.400 100 2.400 chennai Willingdon corporate foundation (cost Rs.190 10.24 4.00.50.49 B) 66 Ashok Leyland Limited .42.19 57.449 72.190 3) Equity shares of Srilankan Rs.000 2) Equity shares of Rs.500.6 A) INVESTMENTS descRiption Nos Long term investments Trade 1) Equity shares of Rs.04.00.01 each defiance testing and engineering services.00.00.980 2) Equity shares of Rs.000 220.127.116.11.52 7.000 49 10.55.75 344.000 Ashley investments Limited 1.07.40 2.70 14.68 4.15 6.619 Hinduja foundries Limited # 54.029 2.46 2.500.599.33% 6) Equity shares of UAE Dirhams of 1000 each Ashok Leyland (uAe) LLc 9.963.00.15.980 2.332 4) 6 % Cumulative Non-Convertible Redeemable Preference shares of Rs.000 40% 1.00 200.15 752.55.029 Hinduja Ventures Limited # 2.166.o.923 Mangalam Retail services Limited 24.421.40.40 600.88.68.77.50.00 1.00 32.818.104.22.168.550.52 691.08 3.00 470.999.67 13.00.80.49 600.50.014 51.27 1.00 1.014 Automotive coaches and components Limited 51.000 nissan Ashok Leyland powertrain Limited 5.60.15 5.457.600.664 Automotive infotronics private Limited 1. 10 each Ashley Airways Limited (under liquidation) 14.19 57.75 344. 48.13.00 579.00 367.443.
00.112.42.537 73.32.38 canara Robeco Mutual fund 22.214.171.124.10 31.55 53.02.26.37.925 29.000 13.95.40 21.62 1.90 the shares in the following companies can be disposed off / encumbered only with the consent of Banks / financial institutions who have given loans to / subscribed to the debentures of those companies: (a) Ashley Alteams india Limited (b) Automotive coaches and components Limited (c) Hinduja foundries Limited 126.96.36.199.188.8.131.52.03 66.066.980 59.958 53. 2. Lakhs 2010 Rs.000 184.108.40.206 39.07 uti Mutual fund 5.007.006 16.95.78 .10 Lic Mutual fund 35.953.81.445 1.619 1.288 50.00.516.796 39.13 220.127.116.11.758 39. Lakhs 8.537.88 28.318.104.22.168.cost 11.10 1.90.516.955.91 59.42.00 Avia Ashok Leyland Motors s.31.19.445 1.20.110.000.13 dsp Black Rock Mutual fund 22.214.171.124 5.204.7126.96.36.1996 1.30.SCHEDULES ANNExED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.958 53.95.879 69. 2011 Rs. Lakhs a) units of Rs.758 39.37.12 99.60 Baroda pioneer Mutual fund 15.000.537 73.503.43 taurus Mutual fund 74.590 1.320.818.883.879 69.60 30.818.320.00.796 39.836.242 23.25 15.19.724 31.60.79.00 Ashley investments Limited 14.006 16.13.43.Market value 52.503.658. Lakhs Rs. 13.642 188.8.131.52.45.62 Religare Mutual fund 28.46 unquoted investments .401.707.00.112.36.45 JM Mutual fund 53.50.17 franklin templeton Mutual fund 39.55 23.cost 1.17 34.83.25 Birla sunlife Mutual fund 69.971 25.99.242 23.266 82.15. cost Rs.305 34.99.707.116. Quoted investments (#) .14 32. purchase and sales / redemption of investments during the year are as under: Acquisition disposals / Redemptions description nos.50.02.594 30.971 25.36.55 sundaram Mutual fund 21.007.55 Kotak Mahindra Mutual fund 1.908.14 24.57.266 82.91 inG Mutual fund 29.69.35 investments are fully paid-up unless otherwise stated.69.93 8.6 INVESTMENTS (CONTINUED) 1.others .45.642 74. 2011 184.108.40.2063.763.724 31.507.38 69.861 33.861 220.127.116.11.25.20.980 59.74.46 Hdfc Mutual fund 18.104.22.1684.814.83.26.r.12 35.318.537.43.000 14.344 990.288 50.57.10 fidelity Mutual fund 34.573 16.81.619 1.82 deutsche Mutual fund 56.806.45 22.214.171.124.09 Reliance Mutual fund 1.43 6.73.65 b) equity shares (Long term) Fellow subsidiaries Hinduja foundries Limited 19.90.09 16.12 principal Mutual fund 16.885 22.93.281.885 126.96.36.199.850.763.908.573 16.414. cost nos.590 1.658.594 30.o.188.8.131.52.369 184.108.40.206.88 sBi Mutual fund 23.07 74.67.96 irizar tVs Limited 2.76.000.79.13.90.806.925 29.305 34.906 1.11.40 tata Mutual fund 6.281.955.36.68 Associate companies Ashley Holdings Limited 220.127.116.113.90.03 HsBc Mutual fund 99.82 23.93 idfc Mutual fund 59.12 icici prudential Mutual fund 8.369 57.95.10 each in schemes of mutual funds (current) Axis Mutual fund 18.104.22.1687. 22.214.171.124 - Annual Report 2010-11 67 .
11.116.956.63.15 63.045.99 1.18.03 90.02. cost Rs.00 1. 2011 1.18.37 17.70 4.502.17 1.50 5.403.26 64. Lakhs 126.96.36.1991.7 INVENTORIES stores and spares consumable tools Raw materials and components (including patterns and dies) Work-in -progress finished / trading goods 2011 Rs.28.15 1.57 1.104.584.07.77 2.02 5.283.18 13. 1 unsecured – considered good – considered doubtful 2 Age analysis of debts – outstanding for more than six months [includes deferred receivables Rs.619 Mangalam Retail services Limited 24.000 Hinduja Leyland finance Limited 10.96 15.00 1.34 63.53 94.588.923.29.8 SUNDRY DEBTORS trade others Less: provision of the above.075.890.766.606. Lakhs 3.60 2.30 - Ashok Leyland (uAe) LLc 8.067.24 1.00.225 * 90% of share capital received during members’ voluntary liquidation 2.76 1.51. 6.475.000.640.81.656.312.74 disposals / Redemptions nos.02.00 399.27.025.108.37.000 Automotive infotronics private Limited 1. uK 19.725 Ashok Leyland John deere construction equipment company private Limited 1.67 1.20. Lakhs 5.6 INVESTMENTS (CONTINUED) description Acquisition nos.824.02.10.54 34.87 lakhs)] – other debts 3 debtors include Bills receivable 1.40 58.400 Albonair GmbH 96.33 63.16 63. 35.33 1.95 2.34 2010 Rs.000 defiance technologies Limited 2. cost Rs.828 Ashok Leyland defence systems Limited 17.38 3.567 Ashley Airways Limited * Joint Ventures Ashley Alteams india Limited 1.282.01 1.01 1.521.516.96 - - 1.55.269.89 68 Ashok Leyland Limited .980 optare plc.983.02. Lakhs 1.82 750.841.18 lakhs (2010 : Rs.68 2.16.327.206.762 Ashok Leyland nissan Vehicles Limited 13.12 1.400 Others indusind Bank Limited 8.00 10.46 1.18.00.00.045.00.45 26.31.38 88.000 nissan Ashok Leyland powertrain Limited 4.66.000 Ashley Bio-fuels Limited 75.01 14.SCHEDULES ANNExED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 188.8.131.528.515.865.332.200.01 30.79 87.00.000 Albonair india private Limited 39.16 2.
Lakhs Balances with other banks Balances with other banks Currency Balance 2011 Maximum balance at any time during the year 317.15 0.75 14.01 Balance 2010 Maximum balance at any time during the year 731.Mauritius national Bank of sharjah .30 0. Lakhs 1.892.50 128.474.718.36 17.000.10 3.23 130.42 114.egypt indian ocean international Bank .London HsBc .12 7.Ghana state Bank of Bangladesh .01 Annual Report 2010-11 69 . 2011 2011 Rs.90 4.97 0.06 6.70 0.57 58.84 5.42 20.Ghana standard chartered Bank .952.99 1.57 32.29 293.23 39.11 221.SCHEDULES ANNExED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.Bangladesh – deposit account standard chartered Bank .81 1.30 0.9 CASH AND BANK BALANCES cash and stamps on hand cheques on hand and remittances in transit Balances with scheduled banks – – – current account deposit account current account 17.10 51.Ghana Ghana cedis south African Rand us$ us$ us$ Mauritian rupees dirham us$ Ghana cedis us$ taka 119.49 182.02 24.01 – current account ABsA Bank .56 68.84 1.01 64.55 33.sharjah standard chartered Bank .Hong Kong citibank .south Africa Bank of America .72 18.83 8.sharjah national Bank of sharjah .30 6.48 2010 Rs.85 – 263.05 32.36 104.15 0.45 156.
474.320.20 Less: provision 1.06 41.67 2010 Rs.55 11.23 1.04 5. other receivables 9.72 3.91 7.428.457.319.74 714.180.14 1.32 2.395.428.06 96.907.32 2.SCHEDULES ANNExED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. 4.93 97.360.93 79.10 LOANS AND ADVANCES Advances recoverable in cash or in kind or for value to be received Long term monetary assets in foreign currency . 5. Lakhs 1.429.06 96.27 18.60 1. unsecured – considered good – considered doubtful 2.046. etc. port trust.805.191.97 5.27 14.568.77 11. 2011 2011 Rs.615.789.exchange gain on translation 13.692.091.457.429.92 Balances with customs.67 46.08 627.14 of the above 1.985.23 49.046. due from directors / officer – At the end of the year – Maximum amount due at any time during the year 3.Loans to overseas body corporates .23 41. central excise.29 1.06 79. Advances for capital items and investments interest accrued on investments Advance income tax (net of provision) 0.35 1.84 14.360. Lakhs 70 Ashok Leyland Limited .70 80.
47.39 1.77 4.95 1. provision / (withdrawal) made for the year – – 2.51 6.144.912.782.075.16 1.43 Annual Report 2010-11 71 .96. product warranties employee benefits 3.11 CURRENT LIABILITIES AND PROVISIONS Liabilities Acceptances creditors for materials and expenses – – Micro and small enterprises others 17.59 2010 Rs.72 8. Lakhs 1.916.88) 19.316.26 4.03 2.314.40 of the above.085.07 3.75 2.371.032.86 (67.16 1.45 431.39 808.869.056. creditors for materials and expenses include – Gratuity 2.094.794.29 8.15 2.505.459.560.43 517.59.206. provision for employee benefits relates to – – compensated absences other defined benefits plans 6.28 11.650.26 4.04 184.108.40.2062.901.03.07 563. 1.955.59 28.84 2.25 3.56 5.63 3.45 517.827. Lakhs other liabilities interest accrued but not due on loans other liabilities include – unclaimed dividends 400.364.884.55 76.99 4.SCHEDULES ANNExED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.81 638.933. 2011 2011 Rs.122.011.55 3.23 36.120.07 49.12 MISCELLANEOUS EXPENDITURE (to the extent not written off or adjusted) debenture issue / loan raising expenses 431.81 355.606.77 Provisions proposed dividend corporate dividend tax on proposed dividend product warranties employee benefits 26.57 57.
109.360.828.106 17.60 – 1.net profit on sale of division profit on disposal of investments .23 36.581.56 395.511.64 35.188.46 1.377 10.71 7.19 12.50 – 30. rebate and discounts 24.82 188.251.90 132.43 of the above. Lakhs 2011 Rs.06. 2011 unit of Measurement 2. Lakhs 2010 Rs.net – – current Long term 1.77 7.193.926 19.2 OTHER INCOME income from current investments dividend .044.949.77 12.22 profit on sale of fixed assets .09.304.56 1.SCHEDULES ANNExED TO AND FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE yEAR ENDED MARCH 31.00 12.40 327.55 Rs.87 Less: commission.87.567.74 88.74 Volume 2011 Rs.70 8.82 307.07 4.050 6. Lakhs Volume 2010 Rs.34.24 – 4.05 72 Ashok Leyland Limited .84 7.90 405.74.949.884.87 services 2.943.54 3. Lakhs 257.505.001.1 SALES AND SERVICES sales commercial vehicles engines and gensets spare parts and others nos nos 94.53 233.48 1.60 Miscellaneous income 498.259.99. Lakhs 2.68 63.76 737.other than trade income from long term investments dividend – trade – other than trade interest – other than trade 62.879. tax deducted at source on income from long term investments: – trade 6.92 14.61 439.81 3.558.533.31.03. Lakhs Rs.90.51 16.
88 99. employees’ remuneration and benefits salaries.79 (144.46.05) 60.765.797.184.867.16 767.19 77.90.701. 1. other expenses power and fuel consumption of stores and tools Repairs and maintenance – Buildings – Machinery Rent (net) Rates and taxes insurance selling and administration expenses .349.25 51.059.01 54.447.187.20 384.25.45 220.127.116.11(b) to the Accounts) selling and administration expenses include directors’ sitting fees 1.97 8.818.06.49.460.02 650.net Research and development diminution in value of investments . Rent includes amortisation of cost / value of leasehold assets as reduced by transfer of Rs. Lakhs Rs.530. gratuity and other funds Welfare expenses c.161.72 1.603.421.28.488.553.514.94 8.30 7.73 67.06 19.05 15.336.58 27.28 3.05 475.439.21.38 (25.01 82.712.525. 1.04 9.48 8.50) 60.73 24.59 1.07 6.860.406.658.071.net of recovery .08 97.80 2.506.47 41.48.38 1.031.518.55 5. wages and bonus contribution to provident.94 lakhs) from Revaluation reserve (Refer note 3. Lakhs 408.SCHEDULES ANNExED TO AND FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE yEAR 2011 2010 ENDED MARCH 31.662. Annual Report 2010-11 73 . Lakhs 2.26 1.757.135.27 6.86 8.677.557.13 99.98 (17.244.619.36 5.412.32 4.60) 74.04 (288.16.39 8.616.92.09 Rs.65 4.54 557. 2011 Rs.97 5.3 MANUFACTURING AND OTHER EXPENSES A Materials consumption of raw materials and components-net Less: scrap sales purchase of trading goods B.20 2.015.968.24) 6.072.charge / (write-back) d Movement in value of stock of finished / trading goods and work-in-progress opening stock closing stock (increase) e excise duty in value of finished/ trading goods increase / (decrease) f Less: expenses capitalised 1.550.07 11.010.01.55 4.602.35 – 1. Lakhs Rs.50 527.40 1.20 9.15 3.429.523.71 lakhs (2010: Rs.51 6.99 3.55 5.provided / (Written-back) Bad and doubtful debts / advances provided / written-off .649.
2011 2011 2010 Rs.79 292. Lakhs Rs.46 2.541.92 15.726. 2.25 21. deposits and other accounts cash discounts earned 2. Lakhs – 333.69 879.086.864.913.63 27.712.734.4 DEPRECIATION.794. of the above impairment of – Buildings – plant and machinery – furniture. Lakhs 65.49 – 700.31 3.323.65 164.11 11.14 155.170.861.45 1.68 1.40 2.34 16.73 13.35 – 1.69 1. AMORTISATION AND IMPAIRMENT Buildings plant and machinery furniture. depreciation on plant and machinery is net of amount capitalised 2011 Rs. others include debenture issue / Loan raising expenses amortised tax deducted at source from interest earned 175.355.26 – 182.94 12.366.55 15.08 361.07 185.70 478. fittings and equipment Vehicles and aircraft Assets given on lease – Buildings – plant and machinery .41 762.036.20 16.48 Less: Borrowing cost capitalised 1.84 2.734.09 1.89 14.063. Lakhs 2.16 19.74 799.798. fittings and equipment – technical knowhow 2.03 – 14.93 20.410.32 1.743.06 2.97 2.59 19. Lakhs 18.104.22.168 22.613.60 3.716.7(b) to the Accounts) 26.526.SCHEDULES ANNExED TO AND FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE yEAR ENDED MARCH 31.44 0.14 440.072.03 17.74 2010 Rs.windmills – furniture.5 FINANCIAL EXPENSES interest others Less: interest earned on bills receivable.53 5.42 843.71 277.067.27 8.93 802.42 Rs.04 145.10 1. fittings and equipment intangible assets computer software – developed – Acquired technical knowhow – developed – Acquired Less: transfer from Revaluation reserve (Refer note 3.926. Lakhs 74 Ashok Leyland Limited .113.26 150.89 12.08 Rs.
85.47 862. nos. nos.08 7.32 376.13 583.71 8.25 4.20 92.92 693.3 finished / trading goods and work-in-progress Opening stock commercial Vehicles engines and Gensets parts for sale – Bought out finished – Works made Work-in-progress – chassis for body building – others Closing stock commercial Vehicles engines and Gensets parts for sale – Bought out finished – Works made Work-in-progress – chassis for body building – others capitalised / transferred for internal use and others – commercial Vehicles – engines and Gensets 1.536.279.523. nos.50.521.428.89 nos.85 22.214.171.124 9.062 406 54. nos.855.934 Rs.500 2010 @ engines manufactured against spare capacity of commercial vehicles Annual Report 2010-11 75 .98 2.13 583.840. sheets and angles Bars steel tubes tyres.50.874 5.358 1.575.612 18.74 1.25 1.97 49.884.79 37.74 7.37 6.590 18.67 2.96% 40.97 69.1 installed capacity .891.25 5.073.337 17.337.33 42.68 26.96.502.06.603 Rs.500 1.677.90. imports and foreign currency transactions unit of Measurement 1.24 8.33 85.04% 7.561 48.664 2.49.54 7.953.2 production commercial Vehicles engines@ and Gensets 1.321. 1.25. 8.4 consumption of raw materials and components plates.00 nos.858 2.073. 35 44 43 39 nos.285.656. 12 126.96.36.199.34% tonnes tonnes Metres sets 46. Information regarding goods manufactured.35 34.656.853.704.078 8.062 406 54.502.428. 2011 2011 1.28 nos.913.66% 4.82 8.92 1. Lakhs 64.727.422.573 5.673 17. 95.43 92.822.two shifts (as certified by the Managing director) commercial vehicles 1.85 34.408.699.26 10. Lakhs nos.99 nos. tubes and flaps forgings and castings finished and other items of the above – imported items – indigenous items 56.27 2.246 588 76.238. 7.NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31.971.89 10.25 1.486 5.
investments and division .365.27 58.29 459.1 above is within the maximum permissible limit under the Act.12 818.35 56.558.21 492.78 2.909.07.48 105.55 254.79 451.63 548.725.i. 2011 2011 Rs.006.66.69 perquisites include amounts evaluated as per income tax Rules in respect of certain items.735.166.74 50.617.10 – directors’ remuneration 511.54 2010 Rs.1956 profit before tax 80. Lakhs 28.18 the total remuneration as stated in 2.8 2 2.90 – Amortisation of expenses relating to raising / repayment of loans 155.445. insurance.052.15 8.680 44.464.337.65 (144.466.459.46 – capital profit on sale of fixed assets. computation of net profits under section 198 / 349 of the companies Act.93 1.179.2 dividend remitted in foreign currency number of non-resident shareholders 1 1 number of shares on which dividend was remitted 44.net 20.241.76 deduct: – depreciation as per section 350 of the Act 25.856.55 60.21 145.521.48 20.6 1.42 38.87 5.03 2.23 28.62 5.66.) Raw materials trading goods and others spares and tools capital items expenditure remitted in foreign currency Royalty technical knowhow interest and commitment charges commission paid on sales Research and development travel consultancy other expenses earnings in foreign currency export .25 435.634.60 contribution to provident.95 321.28 3.413.470.477.5 imports (c.36 1.65 1.10. Lakhs 1.41 54.680 dividend remitted during the year relating to previous year 6.1 2.653.71 6.24) 75.15 79.89 19. 4.020.14 1.26 – provision / (write back of provision) for diminution in value of capital assets 38.09 5.33 1.92 64.929.45 76 Ashok Leyland Limited .89 perquisites 134.78 399.13 1.7 1.11.410.804.612.340.85 41.31 575.810.29 1.57 1.342.395.363.55 54.48 net profit 81.f.013.410.11.83 165. dividend and commission earned ) 44.743.93 Add: – depreciation / impairment as per books 26.64 – expenses relating to raising / repayment of loans 68.79 9.08 6.foB value interest other income (includes freight.628.656.67 122.99 commission 177.50 Information regarding managerial remuneration Remuneration to Managing director and Wholetime director / Managing director (designate) salary 135.61 19.42 21.83 20. gratuity and other funds 44.09 1.07 4.NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31.17.411.
722.50 0.71 lakhs (2010: Rs.219.65 b) Guarantees 37.00 1.96 lakhs (2010 : Rs.86 lakhs) in respect of intangible assets) 44.143.others 2.47 lakhs) [Rs.09 Auditors’ remuneration included under selling and Administration expenses for financial audit 50.394. 3.87 c) uncalled Liability on partly paid shares / investments 0.50 9.514.00 30.68 14.689.50 for taxation matters 8.489. 1. 3.50 c) depreciation on exchange differences capitalised 269.71 b) Amortisation of exchange differences 122.14 d) Bills discounted 243.53 total Research and development costs charged to the profit and Loss account (including amount shown under schedule 2.60 for other matters 31.7 Annual Report 2010-11 77 . 1.15 a) useful life of fixed Assets Useful life (yrs) (i) useful life lower than that derived from the rates specified in schedule xiV to the companies Act.33 26.90 – interest charge on a) debentures 3. 1956 Buildings Revalued buildings are depreciated over the balance useful life as determined by the valuers. 2009 over the balance useful life on straight line method includes a net charge of Rs.27 .58 expenses reimbursed 7.41 533. 497.00 for cost audit 2.lease improvements 3 office equipment 8 data processing system 5 Vehicles cars and motorcycles 3 trucks and buses 5 (ii) useful life not prescribed in schedule xiV to the companies Act.57 1.194.35 lakhs (2010: Rs.2 Rs.853.14 0.49 27.579.76 537.76 10.60 8. fittings and equipments furniture and fittings 8 furniture and fittings .874. 2.685.3 3.96 b) fixed loans 12.98 13.275. 1956 intangible assets computer software – developed 5 – Acquired 5 technical knowhow – developed 6 – Acquired 5/6 b) depreciation for the year computed on assets revalued as on March 31. Lakhs Other financial information capital commitments (net of advances) not provided for (including Rs.658. Lakhs Rs.00 for company law matters 0.75 1.1 3.21 contingent liabilities a) claims (net) against the company not acknowledged as debts .55 1.78 2.6 3.revised carrying amount over its remaining useful life Windmills 12 furniture.4 3. 220.089. non-factory service installations customer premises 12 Lease improvements 3 plant and machinery Assets subjected to impairment .06 lakhs (2010: Rs.10 impact of exchange (gain) / loss (other than considered as finance cost) for the year in profit and Loss Account due to: a) translation / settlement 581.sales tax 3.5 3.170. 2.982.3 and Rs. 2011 2011 2010 3.323.53 lakhs) in schedule 2. 1.NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31.074.93 lakhs) in schedule 2.925.4] respectively being the excess over the depreciation computed by the method followed by the company prior to revaluation and the same has been transferred from Revaluation reserve to the profit and Loss Account. 1.032.3) 20.
the company is principally engaged in a single business segment viz.69 5.74 (348. united Kingdom) Machen development corporation.263..o. sri Lanka Mangalam Retail services Limited optare plc. uAe Automotive coaches and components Limited Avia Ashok Leyland Motors s. risks.03. 7.) Composition of net deferred tax liability deferred tax liabilities – depreciation/ Research and development expenditure – other timing differences deferred tax assets – Voluntary retirement scheme compensation – unabsorbed depreciation – other timing differences 2011 (A) 63.69 2010 42. 2011 4.NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31.388.47) (1. returns and the internal business reporting system and secondary segment is identified based on the geographical location of the customers as per Accounting standard 17.72) 44. Ras Al Khaimah. a company under the same management Hinduja Auto components Limited Hinduja Automotive (uK) Limited Associates Albonair GmbH.955.38.75 Rs.910.83) – (2.367. Earnings per share Basic earnings per share profit after taxation as per profit and Loss account (in Rs. panama (Holding company of Machen Holdings sA) Amas Holdings sA (Holding company of Machen development corporation. Managing director Mr.317 (A/B) 4. Managing director (designate) 78 Ashok Leyland Limited .129. lakhs) Weighted average number of equity shares outstanding Basic earnings per share (face value Re. Related party disclosure a) List of parties where control exists Holding company Hinduja Automotive Limited. Lakhs 46.38. inc.73) 38. Segment information the company’s primary segment is identified as business segment based on nature of products.03.33. Germany Albonair india private Limited Ashley Airways Limited (under liquidation) Ashley Bio-fuels Limited Ashley Holdings Limited Ashley investments Limited Ashley transport services Limited Ashok Leyland defence systems Limited Ashok Leyland (uAe) LLc. 6.93 (B) 1. czech Republic defiance technologies Limited defiance testing and engineering services.95 150.18 Rs. usA Gulf Ashley Motor Limited Hinduja Leyland finance Limited irizar tVs Limited Lanka Ashok Leyland Limited. commercial vehicles and related components.500.r. Vinod K dasari. R seshasayee. united Kingdom Machen Holdings sA (Holding company of Hinduja Automotive Limited. 1) (in Rs.33.61 (78. Lakhs 40.48 1.63 230.317 3.80) (303.453. uK Joint Ventures Ashley Alteams india Limited Automotive infotronics private 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 Key management personnel Mr. panama) b) Other related parties Fellow subsidiary Hinduja foundries Limited.
71 16.66 21.037.50 4.092.58 2.108.013.75 1.85) 408.91 0.50 2.849.087.03 1.535.40 5.11 225.288.028.71 13.39 104.292.459.71 2.77 13.44 393.16 24.57 1.22 52. 2011 Annual Report 2010-11 79 * relates to Hinduja foundries Limited .49 29.13 1.86 30.80 843.50 68.866.11 35.071.05 174.6) 15 Advance given for share capital 16 Loans given 17 Loans repaid Balances as on March 31 1 debtors 2 Loans and advances (including interest accrued) 3 Advance for share capital 4 creditors for materials and expenses 5 deferred Liability (including interest accrued) 6 8.260.62 7.751.617.00 20.91 668.868.152.00 24.01 180.125.29 9.84 880.89 (0.49 13.90 30.61 40.013.32 2.445.541.952.53 530.00 8.20 7.867.19 186.89 - 250.92 6.00 2.78 604.55 393.27 246.339.52 7.03 947.42) 2.14 668.747.59 436.29 18.05 7.52 5.00 990.53 100.654.13 2.92 30.548.72 91.91 109.91 66.854.00 0.81 51.01 108.35 424.181.919.83 0.53 14.19 2.919.26 4.79 (447.44 1.14 7.617.338.78 1 purchase of raw materials and components (net of scrap sales) 2 sales and services (net of excise duties) 3 other expenditure incurred / (recovered) 4 Advance / current account .62 76.039.411.56 - 388.676. Lakhs RELATED PARTY TRANSACTION SUMMARY Transactions during the year ended March 31 21.67 1.00 104.58 186.00 30.00 922.842.74 1.58 1.75 13 Guarantees given 14 Acquisition / (disposal) of investments (Refer note 4 in sch 1.411.15 35.788.643.065.007.189.754.59 45.c) Related Party Transactions Fellow Subsidiary* 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 Associates Joint Ventures Holding Company Key Management Personnel Total Rs.97 321.defiance technologies Limited 8 sale of Asset 9 purchase of Asset 10 dividend income 11 dividend payments # 12 Remuneration to key management personnel (Refer note 2 to notes to the Accounts) 8.92 1.732.322.81 6.359.06 1.192.19 - 388.18 16.49 3.15 financial guarantees 542.81 233.45 397.02 6.12) 516.82 1.594.354.00 6.152.670.77 35.83 10.348.81 21.986.910.53 4.007.559.70 542.53 1.150.654.22 393.06 4.05 250.670.76 9.260.81 7.14 20.594.57 604.993.86 8.200.58 (166.55 41.53 - 2.51 9.78 88.52 – for working capital (maximum limit usd 2 millions) # relates to Hinduja Automotive Limited – others NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31.930.net increase / ( decrease ) 5 interest and other income 6 interest expense 7 sale of division .339.32 45.071.06 6.253.18 2.15) 0.94 (652.55 6.67 76.06 1.93 393.76 68.322.666.22 1.30 604.60 177.16 24.18 46.
132.27 (163.464.02) 21. Lakhs 6.60) 1.637.85 198.51) (243.48 Associate Associate Joint Venture Joint Venture 2 Associate Associate Associate Joint Venture Joint Venture 10.61 990. Dividend income Lanka Ashok Leyland Limited Ashley Airways Limited 2011 Rs.813.26 26.18) 1.789.050.Net increase / (decrease) Ashok Leyland (uAe) LLc Ashley Bio-fuels Limited Automotive coaches and components Limited Hinduja Leyland finance Limited Interest and other income Avia Ashok Leyland Motors s.r.08 6.o.319.31 134.299.516.79 199.47 87.35 430.36 398.09 8.69 112. Lakhs 8. defiance technologies Limited Gulf Ashley Motor Limited Hinduja Leyland finance Limited Lanka Ashok Leyland Limited Ashok Leyland nissan Vehicles Limited Automotive infotronics private Limited nissan Ashok Leyland technologies Limited Advance / Current account .21 39.90 2010 Rs.91 7 Associate Associate 62.402.o.15) (1.84 4 Associate Associate Associate Associate 870.84 143.000.100.28 2.150.64 76. defiance testing & engineering services inc.58 28.o.25 17.143.814.66 395.11 - 5 Associate Associate Joint Venture Joint Venture 314.52 30.35) (339.69 432.31 2. Ashok Leyland nissan Vehicles Limited nissan Ashok Leyland technologies Limited Interest expense Avia Ashok Leyland Motors s.390.NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31.40 14.17 - 6 Associate 104.12 155.72 114.52 3 Holding company Associate Associate Associate Associate Associate Associate Joint Venture Joint Venture Joint Venture 52.18 281.81 110.r.40 14.00 166.53 - 80 Ashok Leyland Limited .64 (1.09 3.00 15. 2011 d) Significant Related Party Transactions Category 1 Purchase of raw materials and components (net of scrap sales) Automotive coaches and components Limited irizar tVs Limited Ashley Alteams india Limited Automotive infotronics private Limited Sales and Services Ashok Leyland (uAe) LLc Gulf Ashley Motor Limited Lanka Ashok Leyland Limited Automotive infotronics private Limited nissan Ashok Leyland technologies Limited Other Expenditure incurred / (recovered) Hinduja Automotive Limited Ashok Leyland (uAe) LLc Avia Ashok Leyland Motors s.63 (286.49 7.r.66 (199.32 45.69) 85.
81 57. defiance technologies Limited irizar tVs Limited Guarantees given Ashley Alteams india Limited Remuneration to key management personnel Mr.57 - e.85 95.o.182.774.380.254.29 7. Ashok Leyland (uAe) LLc defiance technologies Limited Albonair GmbH Automotive coaches and components Limited irizar tVs Limited 3.58 - 8 Advance given for share capital Albonair GmbH Ashley investments Limited Loans given by the Company Albonair GmbH Avia Ashok Leyland Motors s.10 6.930.r.23 7.30 95.10 1.00 Annual Report 2010-11 81 . 2011 d) Significant Related Party Transactions (Continued) Category 2011 Rs. defiance testing & engineering services inc.30 95.02 4.020. Lakhs 390.r.o.23 7.863.14 3.23 7.337.524.78 604.81 50.62 1.85 95. Purchase of asset Avia Ashok Leyland Motors s. Details of Advances in the nature of Loan (excluding interest accrued) to Associate companies 2011 company name Outstanding amount Maximum loan outstanding during the year 30. R seshasayee Mr.74 - 11 Associate Associate Associate 1.061.o.00 7.709.29 6.28 6.959.r. Vinod K dasari Associate Associate 9 Associate Associate 885.50 3.72 104.00 2010 outstanding amount Rs.361.07 27.04 10 Associate Associate 8.74 5. Lakhs 880. Loans repaid to the Company Albonair GmbH Avia Ashok Leyland Motors s.361.654.709.86 - 12 Joint Venture 1.11 250. Lakhs Maximum loan outstanding during the year 25.610.00 2010 Rs.r.53 13 Managing director Managing director(designate) 284.56 28.00 Associates Avia Ashok Leyland Motors s.o.078.78 4.33 4.00 25.128.353.97 6.88 28.740.254.380.88 28.NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31.128.235.
689.235. Lakhs expenses As at March 31.04 (1.220. 2011 1 Ashok Leyland nissan Vehicles Limited 2 nissan Ashok Leyland powertrain Limited 3 nissan Ashok Leyland technologies Limited 4 Ashok Leyland John deere construction equipment company private Limited 5 Ashley Alteams india Limited 6 Automotive infotronics private Limited commercial production yet to start commercial production yet to start commercial activities yet to start JV entered into in the year 2009-10.94) 11.22 (491.68 (2.594. commenced commercial operation.504. 2011 205.87) 9.592.277.237.832.35 (40.893.71) 315.02 (8.42) 355.06% 48.129. design.58) 6.92 (1.59) 813.91) 931.commercial production yet to start commenced commercial production. Disclosures in respect of Joint Ventures a) List of joint ventures sl name of the Joint Venture no.153.368.41 (264.82 (100.57% 49% 50% 5 6 50% india 50% india b) Financial interest in jointly controlled entities sl no name of the Joint Venture current status of operations and financials Assets company’s share of Liabilities income Rs.682.64 1.26) 3.86 (734.63) 5.880.23) for the year ended March 31.49) 117.87 (28.40 (493.68) 28.71 5.79 (83.600.326. development and adoption of digital electronics products for transportation sector 49. 2011 8.17 (7.14 2.43) 10.387.80 (3.35) 16.229.566.228.68) (1. 1 2 3 4 Ashok Leyland nissan Vehicles Limited nissan Ashok Leyland powertrain Limited nissan Ashok Leyland technologies Limited Ashok Leyland John deere construction equipment company private Limited Ashley Alteams india Limited Automotive infotronics private Limited name of the Business proportion of ownership interest country of residence / incorporation india india india india Manufacture of Light commercial Vehicles (LcV) Manufacture of powertrain for LcV vehicles development of related Automotive technology Manufacture of construction equipment Manufacture of aluminum high pressure die casting.32) 82 Ashok Leyland Limited .790.26 (3. 15.55) (73.94 (545.NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31.98 (1.61) 315.18) 162.09 (14.31) (1.10 (21.442.09 (2.70) 4.883.94 (12.92) 5.53) 6.98) 414.
denominated mostly in US dollars. currency swap to hedge certain currency exposures. EURO. Generally such contracts are taken for exposures materialising in the next twelve months.422.15 lakhs (2010: Rs. 7 Figures given above in expenses are excluding taxes. The company had entered into operating lease arrangements with various parties during earlier years. Nil) Share in Capital commitments of joint ventures themselves as on March 31. Nil (2010: Rs. Nil (2010: Rs. Lakhs 770. for leasing out windmills. The limits and monitoring systems are periodically reviewed by management and the Board. operated and maintained these assets. 2011 Rs. Japanese YEN and Great Britain Pounds. 2011 is Rs. present and anticipated. 2. through its wind energy division. Annual Report 2010-11 83 . 2011 Rs. in relation to interests in joint ventures as on March 31.17 lakhs) 4 5 Capital commitments. Contingent liabilities. Nil) Share in contingent liabilities of joint ventures themselves for which the company is contingently liable as on March 31. liabilities or transactions. Lakhs – 2010 Rs. incurred in relation to interest in joint ventures as on March 31. The company actively manages its currency / interest rate exposures through a centralized treasury division and uses derivatives to mitigate the risk from such exposures. The market risk on derivatives is mitigated by changes in the valuation of underlying assets. Ashok Leyland Project Services Limited. 979.NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31. 2011 Rs. 203. 9. Derivatives The Company uses derivative financial instruments such as forward contracts. 2010. 2011 Rs.188. The use of derivative instruments is subject to limits and regular monitoring by appropriate levels of management. as derivatives are used only for risk management.49 Lakhs) 6 The information furnished above in regard to the current year is based on unaudited figures made available to the company.01 Amount recognized during the year 10.60 lakhs (2010: Rs. 2011 Notes: 1 2 3 Figures in brackets relate to year ended March 31. 3.
In other cases.225 (E) dated March 31. Accounting for long term monetary items in foreign currency and forward contracts designated as cash flow hedge 11.694. 2008.70 7.292. 2007.550.096.640. Exchange difference on translation or settlement of long term foreign currency monetary items at rates different from those at which they were initially recorded or April 1.793. exercised its option irrevocably to account for exchange difference on Long term monetary items in foreign currency (i. deposits.00 Refer clause 5 in significant accounting policies for accounting treatment of such derivatives B] foreign currency exposures not hedged by a derivative instrument details Amount receivable on account of sale of goods. 2009 issued by Ministry of Corporate Affairs.828. in so far as it relates to acquisition of depreciable assets are adjusted to the cost of the assets. the Company during the earlier year.63 $3.15 £5. 2010 76.09 $6.324.255.31 $292. in respect of forward contracts for firm commitments and highly probable forecast transactions meeting necessary criteria for designation as “Cash flow hedges”.60 382.24 2011 81.60 6.R.1 Exchange difference in Long term monetary items in foreign currency Pursuant to the notification G. Accordingly. all long term assets and liabilities outstanding in foreign currency are translated at closing rates.43 1.377.013.30 $467.33 2010 $1.764.31 Buy / sell 2011 in Lakhs Amount in foreign currency 2010 11.23 $263. etc. 11.51.S.96 £25.500.99 £5.73 ¥3.91 1. The gains and losses on effective Cash flow hedges are recognized in Hedge Reserve Account till the underlying forecasted transaction occurs. 2011.461.51 2.714. 2011 The information on derivative instrument is as follows: A] derivative instruments outstanding: details foreign exchange contracts – usd/inR – usd/inR – euR/usd – GBp/usd – euRo/usd – usd/Jpy currency swaps – usd/Jpy Bought $2. such exchange differences are accumulated in “Foreign currency monetary item translation difference account” and amortised by recognition as income or expense in each year over the balance term till settlement occurs but not beyond March 31.507.38 ¥11.80 € 120.00 € 15. loans. issued by the Institute of Chartered Accountants of India.91 € 14.42 5. interest etc. whose term of settlement exceeds twelve months from date of its origination) as directed in the said notification.24 1.79 $3.00 $2.48.84 € 13.741. with effect from April 1.2 Forward contracts designated as cash flow hedges The Company had adopted the principles of Accounting Standard 30 – Financial instruments: Recognition and measurement. loans. 84 Ashok Leyland Limited .99 sold Bought Bought Bought sold sold $431.00 $20. Amount payable on account of purchase of goods.89 6.49 € 106. Amount (foreign currency) 2011 $1.38 in Lakhs Amount Rs.30 € 112.e.554.NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31.
60 575.91 935.31 768.50 848.011.327.494.07 5.88 110.49 (64.39) (718.92) (715.966.00) (5. 2011 847.714. 2011 A) Expense recognised in the statement of Profit and Loss Account for the year ended March 31.80 6 present value of obligation as at end of the year .21 142.47 70.80 10.081.011.396.942.32) (6.45 906.29 768.32 60.16) 607.396.86 572.88 575.97 1.599.966.43) 4.72) 6.96 4.101.02 (18.54 157.10 719.16 1.56 525.16 715.78 13.062.63 1.34 2.823.16 63.76 366. Lakhs Gratuity 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 Compensated absences Other defined benefit plans Employee benefits a) defined benefit plans .60) 1.81 507.49 847.062.339.89 848.01 1.71 48.38 938.19) 97.16) (563.011.23 1.60) 4 net Asset/ (Liability) recognised in the Balance sheet NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31.67 (64.47 115.07 639.466.88 2.76 508.50 14.00) (5.53 78.26) 563.21 778.78 (758.11 1.43) 1.83 39.As per Actuarial valuation on March 31.17 1.97 (1.27 778.92 1 present value of obligation as at beginning of the year 2 current service cost 3 interest cost 4 Benefits paid 5 Actuarial (gain) / loss on obligation Annual Report 2010-11 85 18.267.51 137.17) 563.237. 2011 D) Change in Present value of the obligation during the year 16.10 14.966.26 (638.44) (2.17 1.56 628.11 56.09) (4.966.78 6.81 4.02 (18.877.50 45.92 105.43) 140.88 406.16 770.28 5.36 365.728.81) (4.420.101.17) (1.31 258.22 10.43 727.60 855.339.73 1.63 (758.50 708.92) 1 present value of the obligation 2 fair value of plan assets 3 funded status [ surplus/ (deficit)] (984.36 133.89 848.822.66 12.227.81 328.599.822.284.72 991.07) (4.327.253.823.822.87 1.28 214.49) 63.54 5.83 56.93 1.26 607.120.29 223.29 60.29) (768.75 55.08 927.62 15.96 695.011.16 1.471.21 795.40) 607.481.07 (855.28 5.54 406.703.60 563.11 1.406.03 275.08 743.18 15.71 105.823.62 15.31 1.04 142.30 204.40) 28.53 (144.92 48.16 770.05 368.396.406.60) (717.74 339.406.822.29) (768.494.52) (743.015.09 4.227.09 4.11) (607.966.91 935.72) (722.80 16.599.73 1.102.82 795.942.44) (2.92 (715.822.50 14.48 40.32 1.48 (2.28 - 1 current service cost 2 interest cost 3 expected return on plan assets 4 net actuarial (gain) / loss recognised during the year 5 total expense B) Actual return on plan assets 1 expected return on plan assets 2 Actuarial gain/ (loss) on plan assets 3 Actual return on plan assets C) 18.32) (6.57 70.66 12.36 572.75 55.120.09 508.481.81 4.07 4.17) 79.81) (4.19) 715.396.51 (80.741.27 639.26 900.494.237.60) (984.00 (80.60) 4.62 719.00 525.53) (743.07) (4.09) (4.11) 715.39) (2.62 15.29 626.54 873.595.63 1.56 365.00 Net Asset/ (Liability) recognised in the Balance Sheet 5.25 328.70 198.942.120.11 (607.02 638.237.33 110.02 658.16 (563.96) (695.131.942.942.50 14.339.11 768.420.23 111.98 4.41 1.92 123.015.98 111.38 369.25 63.57 16.05 39.57 16.66 12.12 Rs.32 40.00 4.48 139.60 638.11) (1.96 140.285.56 369.50 45.02 366.26) (638.49 150.396.10 (717.50 848.
Gratuity 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007
Other defined benefit plans
E) 15,877.10 1,494.18 809.53 1,714.63 16,466.18 1,420.88 100% Qualifying insurance policy 2011 8.0% 4.0% 8.0% 8.0% 8.0% 8.0% 7.5% 5.1% 5.7% 6.3% 5.0% 8.0% 8.0% 8.0% 7.5% 2010 2009 2008 2007 unfunded 223.03 275.30 204.87 110.53 78.54 339.23 1,471.96 719.78 (181.28) (717.43) 140.28 5.98 111.02 (3.73) 15,877.10 14,595.56 13,253.45 10,703.48 223.03 275.30 204.87 (95.57) unfunded 873.08 927.50 708.74 938.31 (658.62) (157.63) (139.23) (123.02) 748.51 983.98 2,127.45 1,999.89 658.62 157.63 139.23 123.02 1,406.11 1,062.60 855.96 695.43 (64.19) 14,595.56 13,253.45 10,703.48 8,741.60 -
Change in Assets during the year 70.31 -
fair value of plan assets as at beginning of the year
expected return on plan assets
NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31, 2011
86 Ashok Leyland Limited
Actuarial gain / (loss) on plan assets
fair value of plan assets as at end of the year
Experience adjustments in
plan liabilities - loss / (gain)
plan assets - (loss) / gain
Major categories of plan assets as a percentage of total plan
expected rate of return on plan assets
the estimates of future salary increases have reckoned inflation, seniority, promotion and other relevant factors.
NOTES TO THE ACCOUNTS FOR THE yEAR ENDED MARCH 31, 2011
b) c) Gratuity is administered through Group gratuity scheme with Life insurance corporation of india. the expected return on plan assets is based on market expectation at the beginning of the year, for the returns over the entire life of the related obligation. during the year the company has recognised the following amounts in the profit and Loss Account in schedule 2.3 B – – salaries and wages includes compensated absences Rs. 1,728.36 lakhs (2010: Rs. 133.70 lakhs). contribution to provident, gratuity and other funds includes provident fund and family pension Rs. 4,111.61 lakhs (2010: Rs. 3,017.66 lakhs), super annuation Rs. 1,175.93 lakhs (2010: Rs.755.39 lakhs), gratuity Rs. 2,085.39 lakhs (2010: Rs. 808.26 lakhs) and other funds Rs. 1,088.14 lakhs (2010: Rs. 817.51 lakhs). Welfare expenses includes contribution to employee state insurance plan Rs. 76.02 lakhs (2010: Rs. (42.47 lakhs)), retirement benefits Rs. 139.27 lakhs (2010: Rs. 43.33 lakhs) and other defined employee benefits Rs. 74.85 lakhs (2010: Rs. 36.69 lakhs).
the information required to be disclosed under the Micro, small and Medium enterprises development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. there are no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made. deferred liability of Rs. 8,992.67 lakhs (2010: Rs. nil) is due within 12 months.
details of expenditure incurred on in-house Research and development (R & d) facilities approved by department of scientific and industrial Research, Ministry of science and technology, Government of india under section 35 (2AB) of income tax Act, 1961. Rs. Lakhs Particulars (i) capital expenditure (a) Land (b) Buildings (c) capital equipments (ii) Revenue expenditure (net) (a) salaries/Wages (b) Material/consumables/spares (c) utilities (d) other expenditure directly related to R&d (e) total revenue expenditure (total of (ii) (a) to (ii) (d)) (iii) total R&d expenditure on approved R & d facilities (total of (i) (c) and (ii) (e)) (iv) Less: Amount received by R & d facilities (v) net amount of R & d expenditure (iii) - (iv) schedule 2.3 A & c schedule 2.3 B schedule 2.3 c schedule 2.3 c schedule 2.3 c 9,607.22 4,907.52 389.62 3,698.81 18,603.17 30,659.20 473.56 30,185.64 6,080.95 4,097.93 357.01 2,796.04 13,331.93 23,435.91 208.16 23,227.75 schedule 1.5 - Additions and capital work-in-progress 113.95 962.54 1,076.49 12,056.03 22.91 157.52 180.43 10,103.98 Included in 2011 2010
current tax expense for the year is after considering credit of Minimum Alternate tax (MAt) of Rs. 4,855.90 lakhs (2010: Rs. 9,215.46 lakhs) under section 115 JAA (1A) of the income-tax Act, 1961. figures for the previous year have been regrouped / amended wherever necessary. signatures to statement of significant Accounting policies, schedules and notes to the Accounts. for and on behalf of the Board
Chief Financial Officer
A.R. cHAndRAseKHARAn May 19, 2011 chennai
Executive Director & Company Secretary
dHeeRAJ G HinduJA
Executive Vice Chairman
Vinod K dAsARi
Annual Report 2010-11 87
BALANCE SHEET ABSTRACT AND COMPANy’S GENERAL BUSINESS PROFILE
i. Registration details Registration no. Balance sheet date 0 0 0 1 0 5 3 1 0 3 2 0 1 1 date Month year state code 1 8
ii. capital raised during the year (Amount in Rs thousands) public issue Bonus issue n i n i L L Rights issue private placement n i n i L L
iii. position of Mobilisation and deployment of funds (Amount in Rs. thousands) total Liabilities Sources of Funds paid-up capital secured Loans deferred Liability deferred tax Liability Application of Funds net fixed Assets net current Assets Accumulated Losses 4 9 9 1 7 5 7 9 8 3 8 9 7 1 3 n i L investments Miscellaneous expenditure 1 2 2 9 9 9 6 8 4 3 1 4 5 1 3 3 0 3 4 2 1 1 8 2 2 9 7 5 8 9 9 2 6 7 4 4 3 8 8 6 9 Reserves and surplus unsecured Loans foreign currency monetary item translation difference - net 3 8 2 9 9 2 7 9 1 3 8 5 9 6 7 3 n i L 1 0 5 9 3 3 1 4 5 total Assets 1 0 5 9 3 3 1 4 5
iV. performance of company (Amount in Rs. thousands) turnover profit/Loss Before tax earning per share in Rs. 1 + + 1 1 3 3 0 4 3 3 8 0 1 7 9 9 3 4 . 7 5 profit/Loss After tax dividend Rate% total expenditure 1 0 3 3 1 2 4 4 0 + + 6 3 1 2 9 9 3 2 0 0
V. Generic names of three principal products of company item code no. (itc code) 8 product description c 7 0 6 0 0 4 2 o M M e R c i 4 0 8 9 0 1 0 n G i n e s 7 0 8 0 0 0 0 p A R e p A R t s
for and on behalf of the Board
V e H i c L e s
item code no. (itc code) 8 product description e
item code no. (itc code) 8 product description
Chief Financial Officer
A.R. cHAndRAseKHARAn May 19, 2011 chennai
Executive Director & Company Secretary
dHeeRAJ G HinduJA
Executive Vice Chairman
Vinod K dAsARi
88 Ashok Leyland Limited
construction and Allied Business special director.10.06 05.33.64.(p . Kudremukh iron ore Ltd ceo.63.01.81 18.37..68 01.388 42 42 30 19 29 39 35 37 35 43 15 Be (Metal).166 1.tech.03.291 83. LLB BA(Hons).10 14.26.267 68.04 17. HoMBALi V M * JAnARdHAnAn t c * systems Analyst.06.82 01.09.s.967 B.10.08 06.sc.tech.Maintenance.08.A. HMt Ltd --director &ceo American Megatrends india Ltd.engine Research & development . Voltas Ltd – executive Manager-sales.85 16.07 16.23. General Motors.tech B.93. Hosur 06. nAMe AGe yeARs 1 2 3 AdHinAtHAn K AKBAR KHAn A AMRoLiA J n 4 5 6 7 AnuJ KAtHuRiA Anup BHAt AVinAsH KuMAR JAin BALAcHAndRAn B * Vice president. MMs B.08 01. Mumbai special director-customer support deputy General Manager Master production scheduling Head . piaggio Vehicles p Ltd Asst supdt.229 73. dMit Bsc .M. orchid chemicals & pharmaceuticals Ltd Manager .02.pricing & product cost engineering General Manager -systems special director .in sQc & oR.e. MBA Be. Acs. MBA B.50.11. dip. B.sc.32.614 B.04.sc.077 1.73. pGd .. dubai – 13 14 15 16 17 18 cHAndRAseKAR s cHAndRAseKARAn n * cHAndRAseKHARAn A R cHAtteRJee A K deVARAJAn R * feLix RAdiZi 19 20 21 22 23 GuptA ALoK KuMAR HARiHAR p HesLop WW capt.10. corporate Head .e. GM .sc.com.937 1. Kirloskar oil engines Ltd .07.86 01.97 01.08.74.407 B.80 06.e. dip in prodn. (Mech.08 65. tata Motors sr.77. 30 30 38 executive director-Advanced engg and Mission summit Head-Reliability special director-defence General Manager-product development. B.) 27 34 40 ReMuneRAtion ReceiVed / ReceiVABLe Rs.55. carnation Auto india (p) Ltd dy Mgr. General Manager.projects – B.113 6.36.tech MA.09.79 05.08. uttarkhand plant director-Hosur pilot.93. cAiiB B.19.066 99.ANNEXURE-F TO DIRECTORS’ REPORT Information as per Section 217(2A)(b(ii) read with the Companies (particulars of Employees) Rules. LLB. WG forge & Allied inds Ltd 8 BALAsuBRAMAniAn s 9 10 11 12 BeGG JRW * BeLsARe c G BHiMA senA RAu H cHAndRAMoHAn p G General Manager (engg.product development Head . Ge power controls – engineer-Market planning .87.097 60.363 1.. Me. 19 32 30 36 74. MBA B..54. Brooke Bond india Ltd..56.629 79.708 93.W.04. director-sourcing. icWA (inter).38.47.12.sc.51. corporate executive director .352 1.) MBA Be Be.05. pdGM 30 25 37 34 37 27 83.Manufacturing executive director -project planning deputy General Manager total Quality Management. B.tech.00 13. transmobile Ltd. tata Motors divisional GM.telematics 01. Msc Head-Vehicle engineering special director .10.09 13.62. travancore titanium products Ltd selection & training Manager.tech. chennai staff Researcher-R&d.09 18.information technology executive director & company secretary plant director -Bhandara special director .08.468 1.tech. dMit B. Al Aquili Group.11. MBA dMe B.d 21 32 sL.tech.660 66. MBA B. Lakshmi precision engg. dMit B. icWA B.. Mgt.69. 1975 and forming part of the Directors’ Report for the year ended March 31.87 01.Research. esix technologies president. Ms B.42.tech.no. M.defence exports Head .05. dBM Aircraft pilot's Licence B.22. 2011 desiGnAtion dAte of coMMenceMent of eMpLoyMent 03.57.05..power solutions Business Resident director-dubai special director ..& L. & R&d)..650 84. own consultancy GM.73.04.73 07.sc. Aircraft division.04.sc.31.350 1.06 03.192 77.185 1..47.12.74 13.strategic sourcing executive director .00. ph.79 1..02 01.35. eicher Royal enfield Motors director-operations. dBM.06 01.77.286 66. AcA.351 59.02 62.15. pGdBM B.06.81 30..Marketing General Manager-personnel & Administration executive director .215 Be .02.54. M.01.engg.11. QuALificAtion totAL expeRience (yeARs) pARticuLARs of pReVious expeRience 90 Ashok Leyland Limited 50 55 63 43 54 51 59 63 66 52 51 54 58 59 58 59 69 36 51 49 62 58 59 52 57 57 61 43 61 General Manager . Germany senior Metallurgist.720.pantnagar plant.177 70.96.414 71.05 01. usA --Regional service engineer...04 16.655 1.com(Hons). B.01. Hindustan Motors 24 JAyARAM KRisHnAn 25 JAyendRA pARiKH 26 27 28 JeyAGopu e KHAitAn B * KRisHnAn s 29 LAKsHMinARAyAnAn pA dr* AGM (engines). MAn ferrostaal AG.
e.08 LoBo A MoHAnAKRisHnAn n * MuRALi s MuRALitHARAn n 56 59 53 53 34 35 36 37 38 39 MuRuGAppAn n * MutHuKuMAR t nAGesH pRAKAsH K nAiR M K R nAResH GuptA nAtRAJ M * special director-exports executive director . B. Russia 42 piLLAi n s n * 43 44 45 46 47 48 49 puRsHotAM HinduJA cApt RAJAGopAL Menon R RAJindeR MALHAn * RAJiVe sAHARiA RAJu s K RAMA RAo A * RAMAduRAi s G * 37 22 30 45 29 39 36 ------consultant president. AcA. B.) Be (Hons) Me Be 25 dMit.sc.015 B..177 78.78 01. M.45.sc).842 executive director .international operations 01.20.80 29.88.08.02.330 66.e. Mumbai executive director-product development executive director . Aircraft division.991 1.245 64.04.10.883 2.07 01.215 1. AcA. B. coimbatore president & coo.02 02. Bangalore ceo-MAn cis.83 07.A. B.80. eastern coal fields Ltd --sr GM-R&d.Business planning executive director .29.10.. Bimetal Bearings Ltd. B.57.68.790 81.03. B.15.74 06.422 20. Acs Be.defiance technologies 04.20.81 01.com.international operations exective director -Marketing special director .52.07. --chief Accountant.44.72 13.04..71.579 1.e.53.75 21.sc (engg.e. international instruments Ltd .10. cisM Aircraft pilot's Licence B.internal Audit special director .Manufacturing General Manager-projects 26. doctorial studies in Business Admn B.Human Resources General Manager -finance General Manager .(soc.579 62.(pol.45. indian pistons ReMuneRAtion ReceiVed / ReceiVABLe Rs.821 88.389 53.. AicWA.04.10.03.77 10. cymax distributors p Ltd ------senior engineer.sc.defence & special Vehicles General Manager .96 19. .82 60. AcA. oswal steel --sr.24.07 19.08.tech.81 09.77. MMM dMe.996 80.78 01.09.890 B. dMit 36 28 23 28 34 36 40 34 36 34 32 34 33 36 32 40 39 Annual Report 2010-11 91 59 60 61 62 63 64 65 sRiKAnt sRiniVAsAn sRiniVAsAn R * sRiniVAsAn s R suBRAMAniAn K V sundARAM pARtHAsARAtHi udAyAsAnKAR B M VAsudeVAn n s * sales executive.80 01.065 67.37.product development 40 pARtHAsARAtHy p * 41 peR GustAV RAGnAR niLsson --------country Head.81 1.02.) . Grad.21. AcA B. nAMe AGe yeARs desiGnAtion dAte of coMMenceMent of eMpLoyMent 21.61. MsW B.01..054 1.82 01.02.Manufacturing. Moscow.10 chief operating officer .97.82 28. continental engines Ltd Manager . Acc Ltd.cWA B.com.544 60.08.82.sc. B.com. Ms B.tech. Ltd. Brose india Automotive systems p Ltd senior development engineer. Hosur 2 General Manager .03. MBA 30 35 29 29 – Group Accounts officer. diit B.com.737 1.neptune project General Manager engine Research & development plant director. AcA Be. teLco --- 50 51 52 53 54 55 56 57 58 RAMesH V RAMKuMAR K RAnGAnAtHAn t R RAo R n sesHAdRi K s * sesHAsAyee R sHeKAR ARoRA soundARARAJAn G sRidHARAn K deputy General Manager .597 85.. MAc industries --sales engineer .c. MA (pers Mgt) B.sc).tech.30.plg.76.special projects General Manager -Global sourcing executive director . & devpt.product planning & portfolio Management General Manager-product development General Manager-treasury & Accounting General Manager-Manufacturing special director-sales & Marketing deputy General Manager-product development Managing director executive director -HR General Manager . Greaves cotton & co.07. Mumbai personnel officer. 34 28 29 41 34 46 66.74 19.sc. QuALificAtion totAL expeRience (yeARs) pARticuLARs of pReVious expeRience 30 31 32 33 61 54 54 64 60 69 58 55 62 47 56 62 52 64 59 59 53 46 53 57 58 63 58 62 57 54 62 58 61 58 61 63 special director .product development General Manager-project planning special director .60. Lucas tVs Ltd --Manager . personnel officer. M. B.08.701 71.10.01.32.996 61.12.81 01.09.sL.01.07.s.05.s.83 30.430 92.75 29.sc. B. 41 1.789 1.e.981 74.28.26.01.07 09..84.e.10.76 02.special projects chief financial officer B.A. Hindustan Lever Ltd.no.734 85.167 62.596 10. A.06 07.05.Accounts.04.06.07.20. Msc.00.78 26.03.46.(u.50. --Manager-finance.00. system Analyst.sc.internal Audit General Manager-project planning special director ..com.888 63.88.09.201 Be B. ciA.82 05.. diM B.33.83 16.96.75.03. tata consultancy services.ennore General Manager .(engg.75 60.sc.A) B.275 2.35.information security and Risk Management pilot.07.18.76 10.74 01. diM B. Be.01.54.28.tech.99.82 01.375 42. MA (Mgt science) B.000 1. Be (Hons) Be (Hons).tech.05.e. tVs-e technologies Ltd.sc. MBA B.577 64.67.021 74.93 01.
finance General Manager-project planning Managing director . Allowances.sales . nAMe AGe yeARs desiGnAtion dAte of coMMenceMent of eMpLoyMent 01.18..24.no. Geep industrial syndicate Ltd engineer. tVs Motor co.com.11. none of the employees is a relative of any director of the company. pGd in computer B. AcA 27 36 25 33 76. BL Be Be.tech.45. Ms 35 22 32 60.936 61. commission.com. cummins india Ltd. in addition to the above.tech. company's contribution to provident fund and superannuation fund and certain perquisites evaluated as per income-tax rules. QuALificAtion totAL expeRience (yeARs) pARticuLARs of pReVious expeRience 66 VenKAt suBRAMAniAM B 49 92 Ashok Leyland Limited special directorfuture Vehicles development program General Manager-Legal General Manager-projects General Manager-systems General Manager .08.sL. Be. Annual performance pay.89.271 82. 4. Acc Vickers Babcock Ltd JMd.83 29.79 15.03 22.944 61.04 30. Leave travel Assistance as applicable in accordance with the company's rules.79 01.12.03.designate General Manager-product development sr Manager-Legal.307 2.307 B. tata teleservices Ltd Jr executive.234 B. continental information Accounts-cum-Admn officer. Me (Mgt).04.644 Be Bs (engg). .09. – 67 68 69 70 VenKAtARAMAn s VenKAtARAMAni n VenKAtesH nAtARAJAn VenuGopALAn R * 53 60 48 59 71 72 73 ViJAyAKuMAR unni V K Vinod K dAsARi VisWAnAtHAn G 57 44 57 * part of the year as employee 1. the above list does not include employees on deputation.00 01.19. MeM.78 60. Gross remuneration shown above is subject to tax and comprises of salaries.69.03. the employees are entitled to Gratuity. M. pGdBM 24 GM . dalal consultants & engineers eRp consultant. 3.579 64. 2. ReMuneRAtion ReceiVed / ReceiVABLe Rs.05 26.11. Medical benefits.05.53.06. MBA. All appointments are contractual.
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