CHAPTER - 1

1
1.1 INDUSTRY PROFILE
AUTOMOTIVE INDUSTRY
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles,
and is one of the world's most important economic sectors by revenue. The term automotive
industry usually does not include industries dedicated to automobiles after delivery to the
customer, such as repair shops and motor fuel filling stations.
This class consists of units mainly engaged in manufacturing motor vehicles or motor vehicle
engines. The primary activities of this industry are: Motor cars manufacturing & Motor
vehicle engine manufacturing. The major products and services in this industry are:
Passenger motor vehicle manufacturing segment (Passenger Cars, Utility Vehicles & Multi
Purpose Vehicles) Commercial Vehicles (Medium & Heavy and Light Commercial Vehicles)
Two Wheelers Three Wheelers.

INDIAN AUTOMOTIVE SECTOR

The Automotive industry in India is one of the largest in the world and one of the fastest
growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4
wheeled) and exports about 2.33 million every year. It is the world's second largest
manufacturer of motorcycles. India's passenger car and commercial vehicle manufacturing
industry is the seventh largest in the world. In 2009, India emerged as Asia's fourth largest
exporter of passenger cars, behind Japan, South Korea, and Thailand.
As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million
automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the
country the second fastest growing automobile market in the world. According to the Society
of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5
million vehicles by 2015 and more than 9 million by 2020.
A chunk of India's car manufacturing industry is based in and around Chennai, also known as
the "Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan
headquartered in the city and BMW having an assembly plant on the outskirts. Chennai
accounts for 60 per cent of the country's automotive exports.
The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting
about 1.5 million every year. The automotive industry of India is categorised into passenger
cars, two wheelers, commercial vehicles and three wheelers, with two wheelers dominating
the market. More than 75% of the vehicles sold are two wheelers. Nearly 59% of these two

2
wheelers sold were motorcycles and about 12% were scooters. Commercial vehicles are
categorised into heavy, medium and light. They account for about 5% of the market. Three
wheelers are categorised into passenger carriers and goods carriers. Three wheelers account
for about 4% of the market in India. About 91% of the vehicles sold are used by households
and only about 9% for commercial purposes. The industry has attained a turnover of more
than USD 35 billion and provides direct and indirect employment to over 13 million people.
Automobile industry is currently contributing about 5% of the total GDP of India. India’s
current GDP is about $ 1.4 trillion and is expected to grow to $ 3.75 trillion by 2020.

4%
5%

16%

TWO WHELLERS
PASSANGER CARS
COMMERICAL VEHICLES
THREE WHELLERS

75%

Figure 1.1 Manufacturing segment of automotive industry

COMPETITORS
Competition in this industry is high. Competition in this industry is increasing. Automotive
industry is a volume-driven industry, and certain critical mass is a pre-requisite for attracting
the much-needed investment in research and development and new product design and
development. Research and development investment is needed for innovations which is the
lifeline for achieving and retaining competitiveness in the industry. This competitiveness in
turn depends on the capacity and the speed of the industry to innovate and upgrade. The most
important indices of competitiveness are productivity of both labour and capital. The concept
of attaining competitiveness on the basis of low cost and abundant labour, favourable
exchange rates, low interest rates and concessional duty structure is becoming inadequate and

3
therefore, not sustainable. A greater emphasis is required on the development of the factors
like innovation which can ensure competitiveness on a long-term basis.
As per Automotive Mission Plan 2006–2016 (2008), the Indian Government recognises its
role as a catalyst and facilitator to encourage the companies to move to higher level of
competitive performance. The Indian Government wants to create a policy environment to
help companies gain competitive advantage. The government aims that with its policies its
encourage growth, promote domestic competition and stimulate innovation.

 Tata Motors:- Market Share: Commercial Vehicles 63.94%, Passenger Vehicles

16.45%
 Maruti Suzuki India:- Market Share: Passenger Vehicles 45.28%
 Hyundai Motor India:- Market Share: Passenger Vehicles 14-15%
 Mahindra & Mahindra:- Market Share: Commercial Vehicles 10.01%, Passenger
Vehicles 6.50%, Three Wheelers 1.31%
 Ashok Leyland:- Market Share: Commercial Vehicles 27%
 Hero Honda Motors:- Market Share: Two Wheelers 41.35%
 Bajaj Auto:- Market Share: Two Wheelers 26.70%, Three Wheelers 58.60%

4
1.2COMPANY PROFILE

Hinduja Group was established in 1914 in Mumbai, India. Hinduja Group was Entered
Middle East in 1919 to grow trading initiatives. Hinduja Group Privately owned by the
Hinduja Family. Hinduja Group a transnational conglomerate with presence in 25 countries.
Hinduja Group Entered India for major activities in 1986.
Parmanand Deepchand Hinduja (1901-1971)
Parmanand Deepchand Hinduja was the Founder of the Hinduja Group and the Hinduja
Foundation. He believed from his early childhood that health and education were the
fundamental rightsof every person.
This belief led him to establish the National Health and Education Society in 1954. Shri
Parmanand Hinduja would visit the hospital devotedly every day to meet the patients, enquire
after their needs and ensure that they were comfortable and received adequate treatment. He
would pay particular attention to the poor and the needy. His method of screening patients to
qualify for free treatment was quite simple.
He would make the patients declare before the Deities of His Guru and the Almighty that
they did not have the means to pay the bills, and provide them with free medical care. The
Hinduja Hospital continues to fulfil his dream of providing world class medical care to all
sections of the society.
Lalita Girdhar Hinduja (1932-1992)
Smt. Lalita Girdhar Hinduja was the wife of Late Girdhar Hinduja, the eldest son of, Shri
Paramand Hinduja. Widowed at an early age, she was encouraged by her father-in law to step
out of the house and offer her services to the Hospital. Following in his footsteps, Lalita
served the Hospital for thirty years. During her time, the institution grew from strength to
strength.She would spend her entire day from morning to evening in the hospital, personally
visiting and looking after the patients, inspecting the quality of medical care, administering
various aspects of hospital management and constantly devising ways to match the standards
of the hospital with those available in the West.Her affectionate disposition, attention to
detail, humane feelings for the staff and simplicity ensured that the Hinduja Hospital operated
like a family with a strong sense of belonging, among all medical and non medical personnel.
Even today, the staffs remember her with affection and respect.

5
INTRODUCTION
Ashok Leyland is a commercial vehicle manufacturing company based in Chennai, India.
Founded in 1948, the company is one of India's leading manufacturers of commercial
vehicles, such as trucks and buses, as well as emergency and military vehicles. Operating
eight plants, Ashok Leyland also makes spare parts and engines for industrial and marine
applications. It sells about 60,000 vehicles and about 7,000 engines annually. It is the second
largest commercial vehicle company in India in the medium and heavy commercial vehicle
(M&HCV) segment with a market share of 27%. With passenger transportation options
ranging from 19 seaters to 80 seaters, Ashok Leyland is a market leader in the bus segment.
The company claims to carry over 60 million passengers a day, more people than the entire
Indian rail network. In the trucks segment Ashok Leyland primarily concentrates on the 16
ton to 25 ton range of trucks. However Ashok Leyland has presence in the entire truck range
starting from 7.5 tons to 49 tons. The joint venture announced with Nissan Motors of Japan
would improve its presence in the Light Commercial Vehicle (LCV) segment (<7.5 tons).

ORGANISATION PROFILE
Type: Public
Industry: Automotive
Founded: 1948
Headquarters: Chennai, Tamil Nadu, India
Key people: R. Seshasayee, R. J. Shahaney, S. P. Hinduja, D. G. Hinduja , Vinod Dasari.
Products: Buses, Trucks, Engines, Defense & Special
Net Profit: Rs. 565.98 Crores
Turnover: Rs. 11,117.7 Crores
Employees:1,15,812(2011)
Parent: Hinduja Group
No. of Plants: 8 in Chennai (Ennore & Ambattur) and Hosur(Unit I, Unit II, Unit IIA), Tamil
Nadu; Bhandara, Maharashtra; Alwar, Rajasthan; Pant Nagar, Uttarakhand
Subsidiaries:
 Ennore foundries Limited
 Automotive Coaches and Components Limited
 Gulf-Ashley Motors Limited
 Ashley Holdings Limited

6
  Ashley Investments Limited
 Ashley Design and Engineering Services (ADES)
 Avia Ashok Leyland
 Ashok Leyland Defence Systems (ALDS)
 Ashok Leyland Project Services Limited
 Lanka Ashok Leyland
HISTORY
The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by independent
India. Pandit Jawaharlal Nehru, India’s first Prime Minister, persuaded Mr. Raghunandan
Saran, an industrialist, to enter automotive manufacture. The company began in 1948 as
Ashok Motors, to assemble Austin cars at the first plant, at Ennore near Chennai. In 1950
started assembly of Leyland commercial vehicles and soon local manufacturing under license
from British Leyland. With British Leyland participation in the equity capital, in 1954, the
Company was rechristened Ashok Leyland.
Early products included the Leyland Comet bus which was a passenger body built on a truck
chassis, sold in large numbers to many operators, including Hyderabad Road Transport,
Ahmedabad Municipality, Travancore State Transport, Bombay State Transport and Delhi
Road Transport Authority. By 1963, the Comet was operated by every State Transport
Undertaking in India, and over 8,000 were in service. The Comet was soon joined in
production by a version of the Leyland Tiger.
In 1968, production of the Leyland Titan ceased in Britain, but was restarted by Ashok
Leyland in India. The Ashok Leyland Titan was very successful, and continued in production
for many years.
In the journey towards global standards of quality, Ashok Leyland reached a major milestone
in 1993 when it became the first in India's automobile history to win the ISO 9002
certification. The more comprehensive ISO 9001 certification came in 1994, QS 9000 in
1998 and ISO 14001 certification for all vehicle manufacturing units in 2002. In 2006, Ashok
Leyland became the first automobile company in India to receive the TS16949Corporate
Certification. Editor’s note: This is part of a series of articles peeking into clean car industries
and car manufacturers of China, India, South Korea and Germany.
In fact, even before laws were placed on car emissions, Ashok Leyland was already
producing low-emission vehicles. Back in 1997, they have already released buses with quiet
engines and low pollutant emission based on the CNG technology. In 2002 it developed the

7
first hybrid electric vehicle. Ashok Leyland has also launched a mobile emission clinic that
operates on highways and at entry points to New Delhi. The clinic checks vehicles for
emission levels, recommends remedies and offers tips on maintenance and care. This work
will help generate valuable data and garner insight that will guide further development.
When it comes to the development of environmentally friendly technologies, Ashok Leyland
has developed Hythane engines. An Ashok Leyland-Nissan joint venture produced light
commercial vehicles (LCVs) from the former's Hosur facility near Bangalore as well as from
Renault-Nissan's car plant near Chennai

CURRENT STATUS
Ashok Leyland is the second technology leader in the commercial vehicles sector of India.
The history of the company has been punctuated by a number of technological innovations,
which have since become industry norms. It was the first to introduce multi-axled trucks, full
air brakes and a host of innovations like the rear engine and articulated buses in India. In
1997, the company launched the country’s first CNG bus and in 2002, developed the first
Hybrid Electric Vehicle.
The company has also maintained its profitable track record for 60 years. The annual
turnover of the company was Rs. 11117.7 Crore in 2010-11. Selling 54,431 medium and
heavy vehicles in 2008-09, Ashok Leyland is India's largest exporter of medium and heavy
duty trucks. It is also one of the largest private sector employers in India - with about 15,812
employees working in 8 factories and offices spread over the length and breadth of India.
The company has increased its rated capacity to 95,337 vehicles per annum. Also further
investment plans including putting up two new plants - one in Uttarakhand in North India and
a bus body building unit in middle-east Asia are fast afoot. It already has a sizable presence in
African countries like Nigeria, Ghana, Egypt and South Africa.
Ashok Leyland has also entered into some significant partnerships, seizing growth
opportunities offered by diversification and globalization – with Continental Corporation for
automotive infotronics; with Alteams in Finland for high pressure die casting and recently,
with John Deere for construction equipment.
Ashok Leyland is looking to expand its production operations overseas to make it a more
global company. As part of this global strategy, the company acquired Czech Republic-based
Avia's truck business. The newly acquired company has been named Avia Ashok Leyland
Motors s.r.o. This gives Ashok Leyland a foothold in the highly competitive European truck

8
market. The Hinduja Group also bought out IVECO's indirect stake in Ashok Leyland in
2007. The promoter shareholding now stands at 51%. The company has a joint venture with
Japanese auto giant hiss an (Renault Nissan group) which will share a common
manufacturing facility in chennai, India.

ACHIEVEMENTS OF ASHOK LEYLAND

1966:-Introduce full air brakes.
1967:- Launched double-decker bus.
1968:- Offered power steering in commercial vehicles.
1979:- Introduced multi-axle trucks.
1980:- Introduced the international concept of integral bus with air suspension.
1982:- Introduced vestibule bus.
1992:- Won self-certification status for defence supplies.
1993:- Received ISO 9002 Certification.
1997:- India's first CNG powered bus joined the BEST fleet.
2000:- Euro-I, Engines/vehicles introduced.
2001:- Received ISO 14001 certification for all manufacturing units.
2002:- Launched hybrid electric vehicle.
2003:- E-Comet launched.
2004:- 50,000 mark vehicle produced.
2006:- TS16949Corporate Certification

VISION
Be among the top Indian corporations acknowledged nationally and internationally, For,
 Excellence in quality of its products
 Excellence in customer focus and service.

MISSION
Be a leader in the business of commercial vehicles, excelling intechnology, quality and value
to customer fully supported bycustomer service of the highest order and meeting national
andinternational environmental and safety standards.

9
VALUES
 CUSTOMERS: We value our customers and will constantly endeavour to fulfil their
needs by proactivity offering them products and service appropriate to their diverse
applications.
 EMPLOYEE: We consider our employee as our most valuable asset and are
committed to provide full encouragement and support to them to enhance their
potential and contribution to the company’s business.
 VENDORS: Our vendors are our valued partners in our business development and
we will work with them in a spirit of mutual co-operation to meet our business
objectives.
 DISTRIBUTERS: Our distributers are the vital between the company and the
customers and we are committed to advice and support our distributers to
continuously upgrade their infrastructure, skills and capability to serve our customers
better.
 SHAREHOLDERS: We value the trust reposed in us by our shareholders and strive
unstintingly to ensure a fair and reasonable return on their investments.
 SOCIETY: We are committed to add to the wealth and well-being of our society by
enhancing the quality of life and contributing to this economic development while
maintaining the highest level of environmental and safety standards.

The five Ashok Leyland CORPORATE values are:

 International
 Speedy
 Value creator
 Innovative
 Ethical

10
POLICIES AND OBJECTIVES OF ASHOK LEYLAND

QUALITY POLICY
Ashok Leyland is committed to achieve customer satisfaction, by anticipating and delivering
superior value to the customers in relation to their own business, through the products and
services offered by the company and comply with statutory requirements. Towards this, the
quality policy of Ashok Leyland is to make continual improvements in the process that
constitute the quality management system, to make them more robust and to enhance their
effectiveness and efficiency in achieving stated objectives leading to:
 Superior products manufactured as also services offered by the company.
 Max use of employee potential to contribute to quality and environment by
progressive up gradation of their knowledge and skills as appropriate to their
functions.
 Seamless involvement from vendors and dealers in the mission of the company to
address customer’s changing needs and protection of the environment.

ENVIRONMENTAL POLICY
Ashok Leyland is committed to preserve the environment through a comprehensive
environmental policy and a proactive approach in planning and executing the manufacturing
and service activities. The objective of Ashok Leyland’s environmental policy is to adhere to
all applicable environmental legislations and regulations, adopt pollution preventive
techniques in design and manufacture, conserve all resources such as power, water etc, and
optimize its usage, through scientific means, minimize waste generation by all possible ways
and Reduce, Reuse and Recycle the same through time bound action plan as well as provide a
clean working environment to employees, contractors and neighbours.
Ashok Leyland has proactively developed its engines to meet the progressive emission
norms, including the Bharat Shage II norms. The Ennore unit was recently identified as one
of the model energy – efficient units by a CII-TNEB organized energy conservation
(ENCON) mission. From August 1999 “green energy” has been powering the Hosur Plants.
Even cooking is eco-friendly here. The canteen runs on Solar Heaters and food waste
becomes fodder to cattle at a cattle farm at Mathagiri near Hosur.
To the best out of Ashok Leyland’s eco-friendly engine technology, round the year awareness
and action programmes are held at Operators’ meets and service campaigns. Ashok Leyland

11
has also launched a dedicated mobile emission clinic operating on highways and at entry
points to New Delhi. On an average 250,000 litters of recycled water is pumped into the
garden saving Rs. 1.5 million per annum. We at Ashok Leyland committed personal
environmental measures.
 We follow all legal reasons.
 Adopt pollution prevent technology in design and manufacturing projects.
 Conserve all resources such as power, water, oil, gas, compressed air etc and optimise
their usage through scientific methods.
 Provide clean working environment to employees.
 Set and review objectives and targets for continually improving environment.
ORGANIZATION STRUCTURE
1) MANAGING DIRECTOR
2) EXECUTIVE DIRECTOR
3) SENIOR DIRECTOR
4) GENERAL MANAGER
5) DEPUTY GENERAL MANAGER
6) ASSISTANT GENERAL MANAGER
7) DIVISIONAL MANAGER
8) SENIOR MANAGER
9) MANAGER
10) DEPUTY MANAGER
11) ASSISTANT MANAGER
12) SENIOR OFFICER
13) OFFICER

12
DEPARTMENT FUNCTIONS
The major functional areas of the unit and the major departments which oversee those areas
are catalogued as follows:
1. Personnel and Administration Department
2. Purchase & Material Planning Department
3. Production Department
4. Finance Department
5. Systems Department
6. Research & Development.

PRODUCT OF ASHOK LEYLAND

Ashok Leyland offers a comprehensive product range with trucks from 7.5 tons to 125 tons.
From 19 to 80 seaters a host of special application vehicles and diesel engines from industrial
gensets and marine application. Main Products are:-
 Buses
 Trucks
 Engines
 Defence & Special
BUSES: - Leaders in the Indian bus market, offering unique models such as CNG, Double
Decker and Vestibule bus.

13
TRUCKS: - Pioneers in multi axle trucks and tractor-trailers.

DEFENSE & SPECIAL: - Largest provider of logistic vehicles to the Indian army.

ENGINES: - Diesel engines for Industrial, Genset and Marine applications, in collaboration
with technology leaders.
SWOT ANALYSIS
The SWOT Analysis of the company is done.
STRENGH OF THE COMPANY
1. Good Training System.
2. Good Organizational Climate.
3. High Market Share
4. Skilled Employees
5. Strong Functional Structure
6. Standard Quality Product

14
WEAKNESS OF THE COMPANY
1. Low margin
2. High price
3. Sales representatives are less
4. There is no proper mechanism to handle the grievance of the customers
OPPORTUNITIES FOR THE COMPANY
1. Due to liberalization, demand for heavy vehicle has stepped up all over the globe.
2. National market through good advertisement.
3. Company provides better credit facility to dealers.
4. Company introduces promotional programmes

THREATS FACED BY THE COMPANY

1. High completion
2. Liberal credit policy of other brand
3. Promotional programmes of other brand
4. Complicated national market
5. Good replacement facility if other brands.

SHOPS
 SHOP I (Chassis Shop) : - The chassis assembly is designed to be extremely
dexterous to produce the smallest to the largest of vehicles in Ashok Leyland’s
product range, including the U-Truck range and other cab bed vehicles. 
 SHOP II (Frame Side Manufacturing Shop) : - For the first time in India, CNC
flexible roll forming technology has been introduced for frame manufacture, offering
manufacturing flexibility to form the entire variety of frames and accommodating
future model requirements and design changes with no fresh tooling.   The flexibility
comes with minimum model changeover time, allowing low batch quantities in the
manufacturing plan.  Frame painting- Powder coating instead of conventional liquid
painting eliminates hazardous pollutants while bestowing high corrosion resistance to
withstand well over 500 hours of salt spray bath.   The change of technology also
ensures zero wastage of paint.
 SHOP III A (Crown Wheel and Pinion Shop) : - Even as it significantly speeds up
operations, migration to dry cutting with carbide blades has eliminated, use of cutting

15
 oil pollution.  Closed loop software connected to inspection and cutting machines
dramatically quickens the fine-tuned machine setting, in managing the complicated
three dimensional geometry of the aggregate. Clean propane instead of LPG makes
for environmental protection and low operating cost.   
 SHOP III B (Axle Shop) : - The integrated axle machining and assembly shop has
highly automated front axle machining lines and conveyorised front / rear assemblies,
all in one shop.    Hazardous operations are performed by robots.
 SHOP IV (Vehicle Testing Shop) : - The single chassis testing line can test all the
models and variants covering various tests, to generate instant test reports.
 SHOP VI (Cab Weld Shop) : - High on automation, the shop employs robotics in
framing and rear body lines, for better quality and improved ergonomics. 
Manufacture of door assemblies is performed by robotic roller hemming. 
 SHOP V (Cylinder and Block Head Machine Shop) :- It is a part of engine shop ,
as the head of engine is rough so it is being furnished and then it is to be fit in engine.
 SHOP VII (Cab Paint Shop) : - The CED coating system is led / tin free, employing
robotics and reducing paint wastage.  While propane gas cuts atmospheric pollution,
the camel back type baking ovens reduces fuel consumption and heat dissipation.   
All material movement is automated to enhance operational safety and output quality.
 SHOP VIII (Engine Shop) : - Integrated Horizontal Machining Centres (HMC)
complex fed by Automated Guided Vehicles (AGV) bestow great flexibility to
manufacture a range of engine variants, using components rough machined in an
adjoining shop.  Auto docking and in-process verification systems directly reduce
testing cycle time and optimize test cell requirements.

All the shops have real-time manufacturing monitoring systems installed which will get
hooked and integrated to a centralized computer controlled automated manufacturing
management system. This will facilitate order tracking, maximization of machine utilization,
quality trend monitoring, prediction of tool life and prompts for preventive maintenance,
among others.

16
SUPPORT SERVICES
The plant has a state-of-the-art Fire Hydrant System, backup power generators (75%), 24 kms
of rain water drains and wide concrete roads for taking care inbound / outbound logistics. The
latest generation electrical lighting reduces energy consumption significantly. The
manufacturing, canteen, office buildings have been designed on the principles of green
building.
Ashok Leyland seeks to utilize its presence in this new location to spread the benefits of
industrialization to reach the youth of the region, by creating a stepping stone for them to
start a career. Ashok Leyland will sponsor them for 3-4 year courses offered in association
with a reputed technical training institute. During the training, they will learn and earn. The
curriculum will cover contemporary management and manufacturing concepts, side by side
with an opportunity for practical hands on learning at the modern plant. This training will
give them the skills and knowledge to be effective shop floor associates and will qualify them
for managerial positions eventually, cueing a breakthrough practice aptly called the integrated
workforce as it seeks to break the conventional hierarchical divisions on the shop floor.
The primary considerations for Ashok Leyland in putting up the new NELLORE plant have
been to maximize local value utilization and create employment both directly and indirectly
for the local population of NELLORE and its immediate vicinity. The Company aims at
reaching over 50% of local procurement by the end of the year. The increase in procurement
and utilization of local resources from areas like Uttarakhand and Himachal Pradesh translate
into excise duty exemptions and VAT rebates which can be passed on to the end customer.
Several key vendor partners of the Company, accorded Preferred Supplier Status, have
accepted the invitation to set up their own facilities in Uttarakhand. For Ashok Leyland, this
translates into better supply chain management, obviates the need for stores and enables
‘produce to deliver’. The suppliers, on the other hand, enjoy the accruing tax benefits apart
from the guarantee of assured business from a captive client. Another positive is the creation
of direct and indirect employment opportunities for local talent.

17
WORKING OF FINANCE DEPARTMENT IN NELLORE

DIVISIONAL
MANAGER
(1)

FINANCE MANAGER
FINANCE MANAGER FINANCE MANAGER
(ACCOUNTS PAYABLE,
(COSTING) SALE TAX, EXCISE (CAPAX, GENERAL
DUTY) LEDGER, INCOME TAX)
(1) (1)
(1)

DEPUTY ASSISTANT DEPUTY

MANAGER MANAGER MANAGER
(2) (1) (1)

SENIOR OFFICER SENIOR OFFICER

(2) (2)

EXECUTIVE OFFICER
OFFICER
(1)
(3)

18
CHAPTER – 2

19
THEORETICAL FRAME WORK
WORKING CAPITAL ANALYSIS
As we know working capital is the life blood and the centre of a business. Adequate amount
of working capital is very much essential for the smooth running of the business. And the
most important part is the efficient management of working capital in right time. The
liquidity position of the firm is totally effected by the management of working capital. So, a
study of changes in the uses and sources of working capital is necessary to evaluate the
efficiency with which the working capital is employed in a business. This involves the need
of working capital analysis.
STATEMENT SHOWING SCHEDULE OF CHANGES IN WORKING
CAPITAL
Statement of changes in the working capital is prepared to show the changes in the working
capital between the two balance sheet dates. This statement is prepared with the help of the
current asset and current liabilities derived from the 2 balance sheets so,
1. An increase in current asset increases working capital.
2. A decrease in current assets decreases in working capital
3. An increase in current liabilities decreases working capital.
4. A decrease in current liabilities increases working capital.
It is worth noting that schedule of changes in working capital is prepared only from current
assets and current liabilities and the other information is not of any use for preparing this
statement. The company should look in to the proper current liabilities.
RATIO ANALYSIS
Ratios should be taken as guides that are useful in evaluating a company’s financial position
and operations and making comparisons with results in previous years or with other
companies. The primary purpose of ratios is to point out areas needing further investigations.
Ratios will not carry meaningful business reasoning if there is no supporting quantitative and
financial information. A ratio is a simple arithmetical expression one number to another. The
technique of ratio analysis can be employed for measuring short-term liquidity or working
capital position of a firm. The following ratios can be calculated for these purposes: Ratios
are relationship expressed in mathematical terms between 2 individual groups of figures
connected with each other. Different ratios are calculated to analyze and study different

20
aspects of a firm. Ratios have been classified into the following groups: Liquidity Ratios,
Current Asset Movement Ratios, and Profitability Ratios
LIQUIDITY RATIO
Liquidity refers to the ability of a firm to meet its short-term financial obligations when and
as they fall due. The main concern of liquidity ratio is to measure the ability of the firms to
meet their short-term maturing obligations. Failure to do this will result in the total failure of
the business, as it would be forced into liquidation. Common liquidity ratios include the
current ratio, and the quick ratio.
 CURRENT RATIO
The current ratio is a popular financial ratio used to test a company's liquidity (also referred
to as its current or working capital position) by deriving the proportion of current assets
available to cover current liabilities. The concept behind this ratio is to ascertain whether a
company's short-term assets (cash, cash equivalents, marketable securities, receivables and
inventory) are readily available to pay off its short-term liabilities (notes payable, current
portion of term debt, payables, accrued expenses and taxes). In theory, the higher the current
ratio, the better. Interpretation of current ratio as:
1. Relatively high ratio values mean that the business is liquid, but cash is not working.
2. If the current ratio is greater than 1.0, the business is liquid.
3. If the current ratio is less than 1.0, the business is illiquid.

TOTAL CURRENT ASSETS

CURRENT RATIO =
TOTAL CURRENT LIABILITIES

 QUICK RATIO
The quick ratio -the quick assets ratio or the acid-test ratio -is a liquidity indicator that further
refines the current ratio by measuring the amount of the most liquid current assets there are to
cover current liabilities. The quick ratio is more conservative than the current ratio because it
excludes inventory and other current assets, which are more difficult to turn into cash.
Therefore, a higher ratio means a more liquid current position.
A high ratio is an indication that the firm is liquid and has the ability to meet its current
liabilities in time and on the other hand a low quick ratio represents that the firms’ liquidity
position is not good.

21
As a rule of thumb ratio of 1:1 is considered satisfactory. It is generally thought that if quick
assets are equal to the current liabilities then the concern may be able to meet its short-term
obligations. However, a firm having high quick ratio may not have a satisfactory liquidity
position if it has slow paying debtors. On the other hand, a firm having a low liquidity
position if it has fast moving inventories.

TOTAL CURRENT ASSETS - INVENTORY

QUICK RATIO =
TOTAL CURRENT LIABILITIES

CURRENT ASSETS MOVEMENT RATIOS

Funds are invested in various assets in business to make sales and earn profits. The efficiency
with which assets are managed directly affects the volume of sales. The better the
management of assets, large is the amount of sales and profits. Current assets movement
ratios measure the efficiency with which a firm manages its resources. These ratios are called
turnover ratios becausethey indicate thespeed with which assets are converted or turned over
into sales. Depending upon the purpose, a number of turnover ratios can be calculated. These
are:
 Inventory Turnover or Stock Turnover Ratio
 Debtors Turnover Ratio
 Creditors Turnover Ratio
 Working Capital Turnover Ratio
The current ratio and quick ratio give misleading results if current assets include high amount
of debtors due to slow credit collections and moreover if the assets include high amount of
slow moving inventories. As both the ratios ignore the movement of current assets, it is
important to calculate the turnover ratio.
 INVENTORY TURNOVER RATIO
Every firm has to maintain a certain amount of inventory of finished goods so as to meet the
requirements of the business. But the level of inventory should neither be too high nor too
low. Because it is harmful to hold more inventory as some amount of capital is blocked in it
and some cost is involved in it. It will therefore be advisable to dispose the inventory as soon
as possible.
SALES
INVENTORY TURNOVER RATIO =
INVENTORY

22
Inventory turnover ratio measures the speed with which the stock is converted into sales.
Usually a high inventory ratio indicates an efficient management of inventory because more
frequently the stocks are sold; the lesser amount of money is required to finance the inventory
whereas low inventory turnover ratio indicates the inefficient management of inventory. A
low inventory turnover implies over investment in inventories, dull business, poor quality of
goods, stock accumulations and slow moving goods and low profits as compared to total
investment.
The number of day’s inventory is also known as average inventory period and inventory
holding period. A high number of days inventory indicates that there is a lack of demand for
the product being sold. A low days inventory ratio (inventory holding period) may indicate
that the company is not keeping enough stock on hand to meet demands.

360 DAYS
NO. OF DAYS INVENTORY =
INVENTORY TURNOVER RATIO

 DEBTORS TURNOVER RATIO

A concern may sell its goods on cash as well as on credit to increase its sales and a liberal
credit policy may result in tying up substantial funds of a firm in the form of trade debtors.
Trade debtors are expected to be converted into cash within a short period and are included in
current assets. So liquidity position of a concern also depends upon the quality of trade
debtors.

SALES
DEBTORS TURNOVER RATIO =
DEBTORS

Debtor’s velocity indicates the number of times the debtors are turned over during a year.
Generally higher the value of debtor’s turnover ratio the more efficient is the management of
debtors/sales or more liquid are the debtors. Whereas a low debtors turnover ratio indicates
poor management of debtors/sales and less liquid debtors. This ratio should be compared with
ratios of other firms doing the same business and a trend may be found to make a better
interpretation of the ratio.
The average collection period ratio represents the average number of days for which a firm
has to wait before its receivables are converted into cash. It measures the quality of debtors.

23
Generally, shorter the average collection period the better is the quality of debtors as a short
collection period implies quick payment by debtors and vice-versa.

360 DAYS
AVERAGE COLLECTION PERIOD =
DEBTORS TURNOVER RATIO
 CREDITORS TURNOVER RATIO
Creditors are a vital part of effective cash management and should be managed carefully to
enhance the cash position. Creditor’s turnover ratio indicates the pattern of payment of
accounts payable. As accounts payable arise on account of credit purchases, it expresses
relationship between credit purchases and accounts payable. It is calculated as follows:
PURCHASES
CREDITORS TURNOVER RATIO =
CREDITORS

It reveals average payment period. Lower ratio means credit allowed by the supplier is for a
long period or it may reflect delayed payment to suppliers which is not a very good policy as
it may affect the reputation of the business. The average period of payment can be worked
out by days/months in a year by the turnover rate.

360 DAYS
CREDITORS COLLECTION PERIOD =
CREDITORS TURNOVER RATIO

 WORKING CAPITAL TURNOVER RATIO

Working capital turnover ratio indicates the velocity of utilization of net working capital.
This ratio indicates the number of times the working capital is turned over in the course of the
year. This ratio measures the efficiency with which the working capital is used by the firm. A
higher ratio indicates efficient utilization of working capital and a low ratio indicates
otherwise. But a very high working capital turnover is not a good situation for any firm.
SALES
WORKING CAPITAL TURNOVER RATIO =
NET WORKING CAPITAL

24
PROFITABILITY RATIO
Profit margin analysis uses the percentage calculation to provide a comprehensive measure of
a company's profitability on a historical basis (3-5 years) and in comparison to peer
companies and industry benchmarks.

 NET PROFIT MARGIN

Often referred to simply as a company's profit margin, the so-called bottom line is the most
often mentioned when discussing a company's profitability? While undeniably an important
number, investors can easily see from a complete profit margin analysis that there are several
income and expense operating elements in an income statement that determine a net profit
margin. It behoves investors to take a comprehensive look at a company's profit margins on a
systematic basis.

PROFIT AFTER TAX

NET PROFIT MARGIN =
NET SALES

 GROSS PROFIT MARGIN

The gross profit margin reflects the efficiency with which management produces each unit of
product. This ratio indicates the average spread between the cost of goods sold and the sales
revenue. The high gross profit margin relative to the industry average implies that the firm is
able to produce at relatively lower cost.
GROSS PROFIT
GROSS PROFIT MARGIN =
NET SALES

GROSS PROFIT = SALES - COST OF GOODS SOLD

OPERATING CYCLE
Operating cycle refers to the time duration required to convert sales, after the conversion of
recourses into inventories, into cash .the operating cycle of a manufacturing company like
Ashok Leyland includes:
1. Accusation of resources such as raw materials, labour, power and fuel etc.
2. Manufacture of the product which includes conversion of materials into work-in-
progress into finished goods.

25
 3. Sale of the product either for cash or on credit. Credit sales create account receivables
for collection.
In manufacturing concern, working capital cycle starts with the purchase of raw materials and
ends with realization of cash from the sale of finished goods. The cycle involves the purchase
of raw materials and ends with the realization of cash from the sale of finished products. The
cycle involves purchase of raw materials and stores, its conversion in to stock of finished
goods through work in progress with progressive increment of labour and service cost,
conversion of finished stock in to sales and receivables and ultimately realization of cash and
this cycle continuous again from cash to purchase of raw materials and so on.

RAW
CASH
MATERIAL

DEBTORS
& BILLS OPERATING CYCLE WORK IN
RECEIVAB PROGRESS
LES

FINISH
SALES
GOODS

Figure5.1 Operating Cycle

The duration or time required to complete the sequence of events right from purchase of raw
material for cash to the realization of sales in cash is called the operating cycle or working
capital cycle. The need for working capital can also be explained with the help of operating
cycle. Operating cycle of a manufacturing concern involves five phases:
1. Conversion of cash into raw material.
2. Conversion of raw material into work-in-progress.
3. Conversion of work-in-progress into finished goods.
4. Conversion of finished goods into debtors by credit sales.
5. Conversion of debtors into cash by realizing cash from them.

26
Thus, the operating cycle starts from cash and then again restarts from cash. Need for
working capital depends upon period of operating cycle. Greater the period more will be the
need of working capital. Period of operating cycle in a manufacturing concern is greater than
a period of operating cycle in a trading concern because in trading units cash is directly
converted into finished goods.
Each component of working capital (namely inventory, receivables and payables) has two
dimensions, TIME and MONEY. When it comes to manage working capital - TIME IS
MONEY. If you can get money to move faster around the cycle (e.g. collect monies due from
debtors more quickly) or reduce the amount of money tied up (e.g. reduce inventory levels
relative to sales), the business will generate more cash or it will need to borrow less money to
fund working capital. As a consequence, you could reduce the cost of bank interest or you'll
have additional free money available to support additional sales growth or investment.
Similarly, if you can negotiate improved terms with suppliers e.g. get longer credit or an
increased credit limit; you effectively create free finance to help fund future sales
IF you….. Then……
Collect receivables (Debtors) faster You release cash from the cycle
Collect receivables (Debtors) slower Your receivables soak up cash
Get better credit (in terms of duration or amount)from You increase your cash
your supply resources
Shift inventory (stocks) faster You free up cash
Move inventory (stocks) slower You consume more cash

Because of the time involved in a operating cycle, there is a need of working capital in the
form of current assets. Firms have to keep adequate stock of raw-material to avoid risk of
non-availability of raw materials. Similarly, concerns must have adequate stock of finished
goods to meet the demand in market on continuous basis and to avoid competition which
necessitates the money tied up in debtors and bills receivables. In addition to all these,
concerns have to necessarily keep cash to pay the manufacturing expenses etc. and to meet
the contingencies.

COMPONENTS OF WORKING CAPITAL CYCLE ARE

CALCULATED AS FOLLOWS:

27
 1. Raw Materials Storage Period=Average stock of raw materials/Average cost of raw
material consumption per day.
2. W-I-P Holding period=Average w-i-p in inventory/Average cost of production per
day.
3. Finished goods conversion period= Average stock of finished goods/Average cost of
goods sold per day.
4. Debtors collection period=Average book debts/Average credit sales per day.
5. Credit period availed=Average trade creditors/Average credit purchase per day.

Operating Cycle= Raw Material Holding Period +WIP Holding Period +FG Holding
Period +Debtors Collection Period -Creditors Collection Period

28
 CHAPTER - 3

3.1 NEED FOR THE STUDY

The main aim of any firm is to maximize the wealth of shareholders. This can be achieved
only by a steady flow of profits which in turn depends on successful sales activity? To

29
generate sales, investment of sufficient funds in current assets is required. The need of current
assets should be emphasized, as the sales don’t convert into cash immediately but it involved
a cycle of operations, namely operating cycle.
The capital requirement for each department in an organization is large which (depends on
the product target for that particular year) calls for an effective working capital management.
Monitoring the operation on cycle duration is an important aspect of working capital.
Managing working capital in a manufacturing firm is very difficult and risky position. It is
required to maintain the liquidity position of any firm to be good. This is the main problem
for all firms. So, components of working capital like inventory management, cash
management and receivables management should be managed well.
Thus a detailed study regarding the working capital management in Ashok Leyland is to be
done to consider the effectiveness of working capital management, identify the shortcoming
in management and to suggest for improvement in working capital management.

3.2 SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted. The Study of
working capital is based on tools like Ratio Analysis, statement of flow of working capital,

30
operating cycle etc. Further the study is based on last 5 years Annual Reports of Ashok
Leyland.

3.3 OBJECTIVE OF THE STUDY

Study of the working capital management is important because unless the Working capital is
managed effectively, monitored efficiently, planned properly and reviewed periodically at

31
regular intervals to remove bottlenecks if any the Company cannot earn profits and increase
its turnover. With this primary Objective of the study, the following further objectives are
framed for a depth Analysis.

 To study in general the working capital management procedure in Ashok Leyland.

 To study the optimum level of current assets and current liabilities of the Company.
 To study the liquidity position through various working capital related Ratios.
 To study the working capital components such as debtor management, creditors
management, Inventory position.

3.4 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done systematically.

32
It is important for research to know not only the research method but also know
methodology. The procedures by which researchers go about their work of describing,
explaining and predicting phenomenon is called methodology. Methods comprise the
procedures used for generating, collecting and evaluating data. All this means that it is
necessary for the researcher to design his methodology for his problem as the same may
differ from problem to problem. Data collection is an important step in any project and
success of any project will largely depend upon how much accurate you will be able to
collect and how much time, money and effort will be required to collect that necessary data,
this is also important step. Data collection plays an important role in research work. Without
proper data available for analysis you cannot do the research work accurately.

TYPES OF DATA COLLECTION

There are two types of data collection methods available, primary data collection and
secondary data collection.
Primary Data:
The primary data is that data which is collected fresh or first hand, and for first time which is
original in nature. Primary data can be collected through personal interview, questionnaire
etc. to support the secondary data.
Secondary Data Collection Method:
The secondary data are those which have already collected and stored. Secondary data easily
get those secondary data from records, journals, annual reports of the company etc. It will
save the time, money and efforts to collect the data. Secondary data also made available
through trade magazines, balance sheets, books etc.

This project is based on primary data collected through personal interview of managers of
finance department and other concerned employees of finance department. But primary data
collection had limitations such as matter confidential information thus project is based on
secondary information collected through five years annual report of the company, supported
by various books and internet sides. The data collection was aimed at study of working
capital management of the company. Project t is based on

• Annual report of Ashok Leyland ltd 2012-13

• Annual report of Ashok Leyland ltd 2013-14

33
 • Annual report of Ashok Leyland ltd 2014-15
• Annual report of Ashok Leyland ltd 2015-16
• Annual report of Ashok Leyland ltd 2016-17

The statement of changes in working capital for the past 5 years is done using the data taken
from these financial reports. Similarly the analysis of operating cycle and calculations of
ratios is done. Apart from this, the website of Ashok Leyland is referred to know the
products, product facilities, network etc. Industry analysis is done based on the information
gathered from newspapers and websites of Indian automotive & other sector related websites.

3.5 LIMITATIONS OF THE STUDY

Following limitations were encountered while preparing this project:

34
 Limited data: - This project has completed with annual reports; it just constitutes one
part of Data collection i.e. Secondary. There were limitations for primary data
Collection because of confidentiality.
 Limited period: - This project is based on five year annual reports. Conclusions and
Recommendations are based on such limited data. The trend of last five year may or
may not reflect the real working capital position of the company.
 Limited area: - Also it was difficult to collect the data regarding the competitors and
their financial information. Industry figures were also difficult to get.

35
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

36
Data analysis is an important part in any study as it fulfils the purpose for which it is made. In
this part of study the analysis of data is done on the basis of information collected through the
annual reports of Ashok Leyland and the data collected through the managers of Ashok
Leyland in Chennai Plant with the help of table and graphs.

4.1 EVALUATION OF WORKING CAPITAL

Working capital is the life blood and centre of business. Adequate amount of working capital
is very much essential for the smooth running of the business. And the most important part is
the efficient management of working capital in right time. The liquidity position of the firm is
totally effected by the management of working capital. So, a study of changes in the uses and
sources of working capital is necessary to evaluate the efficiency with which the working
capital is employed in a business. This involves the need for working capital analysis.

4.1.1 STATEMENT SHOWING SCHEDULE OF CHANGES IN

WORKING CAPITAL

37
 TABLE 4.1:- FOR THE YEAR 2012-2013(Rs. IN MILLIONS)
PARTICULARS 2012 2013 INCREASE DECREASE
CURRENT
ASSETS
Inventories 9025.61 10703.21 1677.6
Sundry debtors 4243.37 5228.75 985.38
Cash and bank balances 6028.76 4349.39 1679.37
Loan & advances 3026.39 6695.79 3669.4
(A) 22324.13 26977.14
CURRENT
LIABILITIES
Liabilities 11468.95 16516.25 5047.3
Provisions 2616.21 1042.3 1573.91
(B) 14085.16 17558.55
(A-B) WORKING
8238.97 9418.59
CAPITAL
Increasing in WC 1179.62 1179.62
TOTAL 9418.59 9418.59 7906.29 7906.29

INTERPRETATION:
The above table shows that there has been increase in need for working capital to the extent
of 1179.62 from the year 2012 to 2013.

TABLE 4.2:- FOR THE YEAR 2013-2014(Rs. IN MILLIONS)

PARTICULARS 2013 2014 INCREASE DECREASE

38
 CURRENT
ASSETS
Inventories 10703.21 12239.14 1535.93
Sundry debtors 5228.75 3758.35 1470.4
Cash and bank balances 4349.39 4513.7 164.31
Loan & advances 6695.79 8241.385 1545.595
(A) 26977.14 28752.581
CURRENT
LIABILITIES
Liabilities 16516.25 19267.084 2750.834
Provisions 1042.3 3452.31 2410.01
(B) 17558.55 22719.394
(A-B) WORKING
9418.59 6033.19
CAPITAL
Decreasing in WC 3385.4 3385.4
TOTAL 9418.59 9418.59 6631.235 6631.235

INTERPRETATION:
The above table shows that there has been decrease in need for working capital to the extent
of 3385.40 from the year 2013 to 2014.

TABLE 4.3:- FOR THE YEAR 2014-2015(Rs. IN MILLIONS)

PARTICULARS 2014 2015 INCREASE DECREASE
CURRENT
ASSETS
39
 Inventories 12239.14 13300.144 1061
Sundry debtors 3758.35 9579.742 5821.391
Cash and bank balances 4513.7 880.836 3632.865
Loan & advances 8241.385 7895.44 346.25
(A) 28752.581 31656.14
CURRENT
LIABILITIES
Liabilities 19267.084 18688.641 5784.43
Provisions 3452.31 2680.82 771.49
(B) 22719.394 21369.461
(A-B) WORKING
6033.19 10286.679
CAPITAL
Increasing in WC 4253.5 4253.5
TOTAL 10286.68 10286.68 8232.32 8232.32

INTERPRETATION:
The above table shows that there has been increase in need for working capital to the extent
of 4253.50 from the year 2014 to 2015.

TABLE 4.4:- FOR THE YEAR 2015-2016 (Rs. IN MILLIONS)

PARTICULARS 2015 2016 INCREASE DECREASE
CURRENT
ASSETS

40
 Inventories 13300.144 16382.40 3082.26
Sundry debtors 9579.742 10226.90 647.16
Cash and bank balances 880.836 5189.20 4308.36
Loan & advances 7895.44 9604.60 1709.16
(A) 31656.14 41403.10
CURRENT
LIABILITIES
Liabilities 18688.641 25920.60 7231.96
Provisions 2680.82 3686.90 1006.08
(B) 21369.461 29607.50
(A-B) WORKING
10286.679 11795.60
CAPITAL
Increasing in WC 1508.92 1508.92
TOTAL 11795.60 11795.60 9746.94 9746.96

INTERPRETATION:
The above table shows that there has been increase in need for working capital to the extent
of 1508.92 from the year 2015 to 2016.

TABLE 4.5:- FOR THE YEAR 2016-2017 (Rs. IN MILLIONS)

PARTICULARS 2016 2017 INCREASE DECREASE
CURRENT
ASSETS
Inventories 16382.40 22089.034 5706.634

41
 Sundry debtors 10226.90 11852.133 1625.233
Cash and bank balances 5189.20 1795.272 3393.928
Loan & advances 9604.60 7936.014 1668.586
(A) 41403.10 43672.453
CURRENT
LIABILITIES
Liabilities 25920.60 30379.477 4458.877
Provisions 3686.90 4903.263 1216.363
(B) 29607.50 35282.74
(A-B) WORKING
11795.60 8389.713
CAPITAL
Decreasing in WC 3405.887 3405.887
TOTAL 11795.60 11795.60 10737.754 10737.754

INTERPRETATION:
The above table shows that there has been decrease in need for working capital to the extent
of 3405.887 from the year 2016 to 2017.

4.6) RATIO ANALYSIS

LIQUIDITY RATIOS:
4.6.1) CURENT RATIO: (Rs. IN MILLIONS)

42
 YEAR CURRENT CURRENT CURRENT INDUSTRY
ASSESTS LIABILITIES RATIO AVERAGE
2012-13 26977.14 17558.55 1.54 1.55
2013- 14 28752.58 22719.39 1.27 1.55
2014- 15 31656.14 21369.46 1.48 1.55
2015-16 41396.83 29607.56 1.40 1.55
2016-17 43672.45 35282.74 1.23 1.55
1.55 1.55
1.54 1.55 1.55 1.55
1.6 1.48
1.4 1.27 1.4

1.2 1.23
1
0.8
0.6
0.4
0.2
0
2012-13
2013-14
2014-15
2015-16
2016-17
CURRENT RATIO INDUSTRY AVERAGE

INTERPRETATION:
Here industry ratio is 1.55. Except in 2013- 14 and 2016-17 remaining all year’s company’s
current ratio is almost near to industry average ratio. In the year 2012-13 company had power
to affect the industry.

4.6.2) LIQUID RATIO (Rs. IN MILLIONS)

YEAR QUICK CURRENT CURRENT INDUSTRY
ASSESTS LIABILITIES RATIO AVERAGE
2012-13 16273.93 17558.55 0.93 1.07

43
 2013- 14 16513.44 22719.39 0.73 1.07
2014- 15 18356.00 21369.46 0.86 1.07
2015-16 25014.43 29607.56 0.84 1.07
2016-17 21583.42 35282.74 0.61 1.07

1.07 1.07 1.07 1.07

1.2 1.07
0.93
1
0.86
0.8 0.73 0.84

0.6
0.61
0.4

0.2

0
2012-13
2013-14
2014-15
2015-16
CURRENT RATIO INDUSTRY AVERAGE 2016-17

INTERPRETATION:
Here industry ratio is 1.07. In 2012-13 it is higher and then started to decline slowly up to
2013- 14. In 2014- 15 it started increasing and came near to the industry average and again
decline in 2016-17.

CURRENT ASSET MOVEMENT RATIOS:

4.6.3) INVENTORY PROPORTION: (Rs. IN MILLIONS)
YEAR RAW WORK-IN- FINISHED OTHERS INVENTORY

44
 MATERIAL PROGRESS GOODS
2012-13 3853.39 1095.07 5325.70 429.05 10703.21
2013- 14 4229.28 1140.46 6255.05 614.33 12239.14
2014- 15 5325.74 940.82 6465.16 568.41 13300.14
2015-16 5860.65 3465.62 6458.81 597.30 16382.40
2016-17 9484.14 2628.20 9051.59 925.09 22089.03
25000

20000

15000 RAW MATERIAL

WORK-IN-PROGRESS
FINISHED GOODS
10000 OTHERS
INVENTORY

5000

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
Raw materials consumed are increasing from year by year. WIP is almost constant for years
and in 2015-16 the WIP increased drastically. FG is in increasing condition as it is the major
part of inventory. This was a good sign to firm. Total inventory is increasing from year to
year.

4.6.4) INVENTORY TURN OVER RATIO & INVENTORY HOLDING PERIOD

(Rs. IN MILLIONS)
YEAR SALES INVENTORY DAYS ITOR IHP

45
 2012-13 71681.76 10703.21 360 6.69 54
2013- 14 77425.80 12239.14 360 6.32 57
2014- 15 59810.73 13300.14 360 4.49 80
2015-16 72447.10 16382.40 360 4.42 81
2016-17 111177.09 22089.03 360 5.03 72
90 80 81
80 72
70
57
54
60
50
40
30
20
6.69 6.32 4.49 4.42 5.03
10
0
2012-13 2013-14 2014-15 2015-16 2016-17

ITOR IHP

INTERPRETATION:
During the 2012-13 the company has very high inventory ratio of 6.69, which means more
capital is being locked up in the inventory. From the year 2012-13 the ratio was decreased
from 6.69 to 4.42 but in 2016-17 there was a slight increase in inventory. The Inventory
holding period was good but from 2014- 15 to 2015-16 it was increased. But in 2016-17 it
decrease.

4.6.5) DEBTORS TURN OVER RATIO: (Rs. IN MILLIONS)

YEAR SALES DEBTORS DAYS RTR DCP

46
 2012-13 71681.76 5228.75 360 13.70 26
2013- 14 77425.80 3758.35 360 20.60 17
2014- 15 59810.73 9579.74 360 6.24 58
2015-16 72447.10 10220.61 360 7.08 51
2016-17 111177.09 11852.13 360 9.38 38
70

60 58
51
50

40 38
RTR
30 26 DCP
20.6
20 17
13.7
9.38
10 6.24 7.08

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
Receivables turnover ratio is highest in 2013- 14. Receivables turnover ratio is lowest in
2014- 15 but now it shows an increasing trend, which implies that recovery position is good.
From 2012-13 to 2013- 14 debtors collection period was decreasing. But in the year 2014- 15
the collection period increased to more than 100% and now it declines shows that
management is effective in collecting the payments from debtors.

4.6.6 CREDITORS TURN OVER RATIO: (Rs. IN MILLIONS)

YEAR PURCHASES AVERAGE DAYS CTR CCP
CREDITORS
2012-13 55212.0 8528.47 360 6.47 56

47
 2013- 14 58553.9 11531.35 360 5.07 71
2014- 15 45533.1 12013.00 360 3.79 95
2015-16 52823.9 13362.75 360 3.95 91
2016-17 82306.4 18454.71 360 4.45 81

100 95
91
90
81
80
71
70
60 56
50 CTR
CCP
40
30
20
10 6.47 5.07 3.79 3.95 4.45
0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
2012-13 year has highest creditor turnover ratio. 2014- 15 year has lowest creditor turnover
ratio. It is seen that it follows a decreasing trend which is good sign for the company. So, we
can say it enjoys a very good credit facility from the suppliers. In the year 2012-13 creditors’
collection period are low 56. In the year 2014- 15 the creditor’s collection period is very high
95.

4.6.7RAW MATERIALS TURN OVER RATIO :( Rs. IN MILLIONS)

YEAR RAW AVERAGE RAW DAYS RW TR RM HP
MATERIALS MATERIAL
2012-13 54018.14 3290.86 360 16.43 22

48
 2013- 14 57480.59 4041.34 360 14.22 25
2014- 15 43218.57 4777.52 360 9.04 40
2015-16 52552.32 5593.15 360 9.39 38
2016-17 80667.79 7672.39 360 10.51 34
40
38
40 34
35 22 25
30
25 16.43
20 14.22 RW TR
15
10 9.04 RM HP
9.39 10.51
5
0
RM HP
2012-13
2013-14 RW TR
2014-15
2015-16
2016-17

INTERPRETATION:
In 2012-13 RM TR is highest. From 2012-13 to 2014- 15 it was decreased and from 2014- 15
to 2016-17 it was increasing. Raw material holding period is constant in all years.But it was
slightly increased in 2014- 15.

4.6.8 WORK IN PROGRESS TURN OVER RATIO: (Rs. IN MILLIONS)

YEAR COST OF AVERAGE WIP DAYS WIP TR WIP HP
PRODUCTIO
N

49
 2012-13 56083.3 1266.19 360 44.29 8
2013- 14 59581.5 1117.77 360 53.35 7
2014- 15 46420.3 1040.65 360 44.60 8
2015-16 53723.7 2203.20 360 24.38 15
2016-17 83818.6 3046.91 360 27.51 13
60 53.35

50 44.29 44.6

40
27.51
30 24.38 WIP TR
WIP HP
20 15 13
8 7 8
10

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
In 2013- 14 WIP TR is highest. Remaining all years it was similar. In 2015-16 it is lowest.
WIP holding period is highest in 2015-16. WIP holding period is lowest in 2013- 14.

4.6.9 FINISHED GOODS TURNOVER RATIO: (Rs. IN MILLIONS)

YEAR COST OF AVERAGE FG DAYS FG TR FGHP

50
 GOODS SOLD
2012-13 64000.16 4909.69 360 13.03 28
2013- 14 69143.30 5790.38 360 11.94 30
2014- 15 55807.23 6360.11 360 8.77 41
2015-16 64925.50 6461.98 360 10.04 36
2016-17 100484.79 7755.20 360 12.95 28

41
45 36
40 30
28 28
35
30
25 FG TR
FGHP
20
13.03 11.94 12.95
15 8.77 10.04
10
5 FGHP
0 FG TR
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
Finished goods turnover ratio is decreasing from 2012-13 to 2014- 15. 2014- 15 is the lowest
and 2012-13 is the highest. Finished goods holding period is highest in 2014- 15. Finished
goods holding period is lowest in 2012-13 and in 2016-17.

TO STUDY OVERALL EFFECIENCY OF WORKING CAPITAL:

4.6.10 NET WORKING CAPITAL (Rs. IN MILLIONS)

51
 YEAR CURRENT CURRENT NET WORKING
ASSESTS LIABILITIES CAPITAL
2012-13 26977.14 17558.55 9418.59
2013- 14 28752.58 22719.39 6033.19
2014- 15 31656.14 21369.46 10286.68
2015-16 41396.83 29607.56 11789.27
2016-17 43672.45 35282.74 8389.71

45000
40000
35000
30000
25000 CURRENT ASSEST
20000 CURRENT LIABILITIES
NET WORKING CAPITAL
15000
10000
5000
0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
Net working capital of Ashok Leyland Ltd is maintained balanced in all years except in 2013-
14 and 2016-17. In 2013- 14 year the net working capital is very low and in 2015-2016 the
net working capital is high and again in 2016-17 the net working capital is low.

4.6.11 WORKING CAPITAL TURN OVER RATIO (Rs. IN MILLIONS)

YEAR SALES NET.WORKING TURN OVER
CAPITAL RATIO

52
 2012-13 71681.76 9418.59 7.61
2013- 14 77425.80 6033.19 12.83
2014- 15 59810.73 10286.68 5.81
2015-16 72447.10 11789.27 6.14
2016-17 111177.09 8389.71 13.25
WORKING CAPITAL TURN OVER RATIO

12.83
13.25

7.61

5.81 6.14

2012-13
2013-14
2014-15
2015-16
2016-17

INTERPRETATION:
The working capital turnover ratio of Ashok Leyland Ltd is increasing from 2012-13 to 2013-
14. But suddenly there is a dip in 2014- 15. In the year 2014- 15 Indian automobile industry
was slowed down due to market slowdown. In the year 2016-17, the performance of Ashok
Leyland Ltd is in peak position.

TO STUDY THE STRUCTURE OF WORKING CAPITAL

4.6.12 CURRENT ASSETS TO TOTAL ASSETS: (Rs. IN MILLIONS)
YEAR CURRENT ASSESTS TOTAL ASSESTS CA/TA RATIO

53
 2012-13 26977.14 44633.32 0.60
2013- 14 28752.58 55399.52 0.52
2014- 15 31656.14 78265.77 0.40
2015-16 41396.83 92768.65 0.45
2016-17 43672.45 105889.98 0.41

2016-17

2015-16

2014-15 CA/TA RATIO

2013-14

2012-13

0 0.1 0.2 0.3 0.4 0.5 0.6

INTERPRETATION:
This CA to TA ratio is of reducing tendency. In 2012-13 it is highest and in 2014- 15 it is
lowest. The portion of current assets is reducing year by year.

4.6.13 CURRENT LIABILITIES TO TOTAL LIABILITIES (Rs. IN MILLIONS)

YEAR CURRENT TOTAL LIABILITIES CL/TL RATIO
LIABILITIES
2012-13 17558.55 44877.50 0.39

54
 2013- 14 22719.39 55622.42 0.41
2014- 15 21369.46 78362.67 0.27
2015-16 29607.56 92820.45 0.32
2016-17 35282.74 105933.14 0.33

2016-17

2015-16

2014-15 CL/TL RATIO

2013-14

2012-13

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45

INTERPRETATION:
CL to TL ratio is increasing from 2012-13 to 2013- 14. There is a decrease in 2014- 15. But
company is capable of recover in 2015-2016 and 2013- 14 has highest ratio.

PROFITABILITY RATIOS:
4.6.14) GROSS PROFIT RATIO (Rs. IN MILLIONS)
YEAR GROSS PROFIT SALES GROSS PROFIT

55
 RATIO
2012-13 7681.6 71681.76 10.71
2013- 14 8282.5 77425.80 10.69
2014- 15 4003.5 59810.73 6.69
2015-16 7521.6 72447.10 10.38
2016-17 10692.3 111177.09 9.61
12
10.71 10.69 10.38
10
9.61

8
6.69
6 GROSS PROFIT RATIO

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
From the table shown above gross profit of the firm is satisfactory in all the years except in
2014- 15. But it was recovered very soon by next year and it is still doing well.

4.6.15) NET PROFIT RATIOS: (Rs. IN MILLIONS)

YEAR NET PROFIT SALES NET PROFIT
RATIO
2012-13 4412.86 71681.76 6.16

56
 2013- 14 4693.10 77425.80 6.06
2014- 15 1899.96 59810.73 3.18
2015-16 4236.74 72447.10 5.85
2016-17 6312.99 111177.09 5.67

6 6.16 6.06 5.85 5.67

5

4
3.18 NET PROFIT RATIO
3

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
From the data given in the above table it is clear that the net profit of the company is almost
maintained constant except in the year 2014- 15. Due to market slow down the net profit of
the company effected. But in 2015-16 it shot up as the company recovered very fast.

4.6.16) OPERATING CYCLE

YEAR RM HP WIP HP FG HP DCP CCP OPERATING
CYCLE
2012-13 22 8 28 26 56 28

57
 2013- 14 25 7 30 17 71 8
2014- 15 40 8 41 58 95 52
2015-16 38 15 36 51 91 49
2016-17 34 13 28 38 81 32

60
52
49
50

40
32
28
30 OPERATING CYCLE

20
8
10

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
From the table given above it is clear that, in 2013- 14 it is very low that is 8. It is best one. In
2014- 15 it is increased from 8 to 52. There is a rapid change in operating cycle.

ACCOUNT PAYABLE PROCESS

Enterprise Resource Planning systems integrate internal and external management

information across an entire organization and embrace finance, manufacturing, sales and

58
service, customer relationship management etc. ERP system automate this activity with an
integrated software application. Thr purpose is to spread the flow of information between all
business functions across the boundaries of the organization and manage the connections to
outside stakeholders. ERP systems can run on a variety of computer hardware and network
configurations, typically employing a database as a repository for information.

This software consists of many enterprise software modules that an enterprise would
purchase, based on what best meets its specific needs and technical capabilities. Each ERP
module is focused on one area of business processes, such as product development or
marketing. Some of the more common ERP modules include those for product planning,
material purchasing, inventory control, distribution. As the ERP methodology is the need of
the hour, software applications have emerged to help business managers implement ERP in
other business activities and may also incorporate modules such as CRM and business
intelligence and present them as a single unified package. The basic goal is to provide one
central repository for all information to smooth the flow of data across the organization.

Hinduja has developed a customised ERP system for Ashok Leyland, the commercial vehicle
manufacturer and is implementing the system in ALL's six manufacturing units and 60
locations across India."The system seamlessly integrates all the manufacturing units which
provides a 360 degree view of the entire organisation," an HTMT press release said. The ERP
system, a major part of ALL's Rs 52-crore IT initiative, involves HTMT developing
customised software for various transactions (e-commerce with suppliers and dealers and
CRM systems, among others), with Compaq as the hardware vendor and Oracle 8i as the
basic software, it was stated.

Ashok Leyland the flagship company of The Hinduja Group of companies, is the second
largest commercial vehicle manufacturer in India. Ashok Leyland Ltd. has chosen HP as its
partner to provide Infrastructure, System, Integration and Management Services. Ashok
Leyland is using state of the art HP Alpha Servers and Proliant Series of systems for running
their in house built ERP applications.

ASHOK LEYLAND

59
Welcome to the HP Managed Services at Ashok Leyland. You are the 17801547 user
browsing this page.

The following screen appears while clicking on the ERP:

Login Screen

ASHOK LEYLAND ENTERPRISE SOLUTION

User Id

Password

User Name

Database

Clear Connect Change Password Exit

Working in ERP during the training session was a wonderful experience and recently the
system of the company has shifted to SAP. So I got little exposure to work in SAP also.
Ashok Leyland, the unit of Chennai manufacturers only Trucks. As soon as the need for
material is needed, the request is sent to the vendors and the material is received. Thu
supplier itself generates ASN i.e, Advanced Shipping Note and on basis of this, the material
is allowed to enter in the plant by checking quantity, price, freight charges etc. mentioned on
the invoice. Then this procedure is followed by sending the material to the different
concerned shops like chasis shop, Axle shop etc. In the shops the inspection of the material
is done and if it does not match the requirement, the material is rejected and hence called
Rejected Material Note.

After inspection the GRN i.e. Goods Receipt Number is created and submitted to the Finance
department. At this stage the invoices are passed in ERP(Code:002,Bill Entry At Finance) by
checking quantity, price, rate etc. The total amount in the system should match the amount
mentioned on the invoice. Then the invoice is passed after checking all the required things. If
the bill is passed properly, the payment is made to the vendor directly or through cheque.
Sometimes it happens so that the amount in decimal is left and not paid to the vendor. That is
said to be supplementary and are cleared separately in different programme. The invoice is

60
not passed if the requirements are not met. Ashok Leyland deals with different parties and
they have different terms of payment. Some suppliers ask for advance payment and hence
called HUNDIS. Hundis are always the first priority and due care is taken for their payment.
Many suppliers are made payment within 45 days and these are MS Meda parties. The rest of
the suppliers are Non-Ms meda and are paid on their due date.

HOW THE BILL IS PASSED

1. Bill processing is of two types
2. Production and non production
3. GRN creation through ALMAP for production and non production module for non
production modules.
4. With reference to GRN, end user has to enter GRN number in GRN tab, all relevant
data will get appear. End user has to ensure below mentioned points:
 To check supplier name
 To check supplier address in invoice.
 With referncce to above point, end user can ensure whether supplier is within state or
outside state.
 With reference to point 3, end user will ensure status of tax i.e, VAT or CST.
 Supplier code, invoice number and data is also to be ensured.
 Value of invoice to be matched with system computer value.

LIST OF HUNDI PARTIES

 Auto Clutch
 Ferrolinks
 Steel Strips
 Madras Engineering
 Dighvijay Plastics
 Paracoat Products Ltd.
 Fern Equipments
 Bhaghya Induction
 Mod Forge Pvt. Ltd.
 RSB Transmission Ltd.
 Jai Suspension
 Kross Manufacturers Pvt. Ltd.
 Techno Rings
 Sound Casting Pvt. Ltd.
 Nelcast
 Precitech
 SAS Autocom Engineering India

61
 Paul Components Pvt. Ltd.
 Metal Forms
 Proxon Tools
 Lamina Flexible
 Vindhya Vasini
 Taurus Flexibles Pvt. Ltd.
 Mahle IPL Ltd.
 MRP Autorub Pvt Ltd.
 Clutch Auto

62
CHAPTER -5

63
 FINDINGS
Statement Showing Schedule Of Changes In Working Capital

1. There is increase in need for working capital to the extent of 1179.62 from the year
2012 to 2013.
2. There has been decrease in need for working capital to the extent of 3385.40 from the
year 2013 to 2014.
3. There has been increase in need for working capital to the extent of 4253.50 from the
year 2014 to 2015.
4. There has been increase in need for working capital to the extent of 1508.92 from the
year 2015 to 2016.
5. There has been decrease in need for working capital to the extent of 3405.887 from
the year 2016 to 2017.
6. Current Ratio: Industry ratio is 1.55. Except in 2013- 14 and 2016-17 remaining all
year’s company’s current ratio is almost near to industry average ratio. In the year
2012-13 company had power to affect the industry.
7. Liquidty Ratio: Industry ratio is 1.07. In 2012-13 it is higher and then started to decline
slowly up to 2013- 14. In 2014- 15 it started increasing and came near to the industry
average and again decline in 2016-17.
8. Net Working Capital of Ashok Leyland is maintained balanced in all years.
9. The portion of current assets in total assets is reducing year by year.

LEARNING FROM SIP

It was a wonderful experience to do training in Ashok Leyland Ltd. in Chennai plant. I came
to know exactly the meaning of working capital and how it is managed. Liquidity position is
maintained through working capital related ratios. Working capital is financed through
different short and long term sources. Beside this, I was also taught how to work in ERP of
Ashok Leyland. It was a good learning to do work in SAP also and especially at the time of
audits. Even I was also given targets to complete and completing them was a great
achievement for me. In this way, I learnt how to survive in corporate and deal with pressure.

64
 RECOMMENDATIONS AND CONCLUSION

RECOMMENDATIONS
Recommendations can be used by the firm for the betterment of firm after study and analysis
of project report on the study and analysis of working capital. I would like to recommend.
 Company should raise funds through short term sources for short term requirement of
funds, which comparatively economical as compare to long term funds.
 Company should utilize the fixed assets effectively to generate more revenues and to
maximize the profit in the forthcoming years.
 The level of working capital should be reduced to maximize the earnings of the
company and the company has to take measures to control the level of working
capital.
 Company should take control on debtor’s collection period which is major part of
current assets.
 Company should reduce the inventory holding period with use of minimum inventory
concepts.
 Company has a good liquidity position but it has to take necessary steps to meet the
liquidity of current liabilities as by using more efficient software than ERP like SAP.
 Company should make a policy in respect of investment of excess cash, if any; in
marketable securities and overall cash policy should be introduced.
 Management should develop a credit policy and proper self realization system from
customers so that efficient and effective management of accounts receivable can be
ensured. This will significantly improve the profitability and liquidity of the company.
Over all company has good liquidity position and sufficient funds to repayment of
liabilities. Company is increasing sales volume per year which supported to company to
increase the market share year by year.

65
 CONCLUSION

Working capital management is important aspect of financial management. The study of

working capital management in Ashok Leyland Ltd has revealed that the current ratio was as
per the standard industrial practice but the liquidity position of the company showed an
increasing trend. The study has been conducted on working capital ratio analysis, working
capital components which helped the company to manage its working capital efficiency and
affectively.
 Working capital of the company was increasing and showing positive working capital
per year. It shows good liquidity position.
 Positive working capital indicates that company has the ability of payments of short
terms liabilities.
 Working capital increased because of increment in the current assets is more than
increase in the current liabilities.
 Company’s current assets were always more than requirement it affect on profitability
of the company.
 Current assets are more than current liabilities indicate that company used long term
funds for short term requirement, where long term funds are most costly then short
term funds.
 Current assets components shows sundry debtors were the major part in Current assets
it shows that the inefficient receivables collection management.

The company has a good operating cycle, liquidity position, and has sufficient funds to repay
its liabilities. It is being found that components of working capital like inventory
management, receivables management and cash management was managing effectively. It is
being found that the production target of the company has been achieved in time; thereby the
profit percentage of company is good. Ashok Leyland sales position is also very good. Its
excellent performance is attributed to reduced cost of product The objective of the company
now is to increase the scale of its business by increasing its profits and the turnover and also
by venturing into new line of business.
The company is matured one and it has contributed towards the countries growth and
development and will also continue to perform and contribute to the whole nation by

66
continuum of existing management policies, checking exchange rate risk, competing with
domestic and global players in terms of quality & quantity.
To conclude company has sound and effective management of working capital, which helps
them to control the cost and increase the profit.

67
 APPENDIX
BALANCE SHEET

PARTICULARS 2012-13 2013- 14 2014- 15 2015-16 2016-17

SOURCE OF FUNDS
Shareholders Fund
Capital 1,323.87 1,330.34 1,330.34 1,330.34 1,330.34
Reserves And Surplus 17,621.81 20,159.48 33,408.65 35,357.23 38,299.27
18,945.68 21,489.83 34,738.99 36,687.57 39,629.62
Loan Funds
Secured Loans 3,602.16 1,902.40 3,044.13 7,115.66 11,822.97
Unsecured Loans 2,801.82 6,972.61 16,537.31 14,923.32 13,859.67
6,403.98 8,875.01 19,581.44 22,038.98 25,682.64
Deferred Liability - - - 765.48 899.26
Deferred Tax Liability-Net 1,969.29 2,538.20 2,634.37 3,845.36 4,438.86
Foreign Currency Monetary Item
38.41 (124.50) -
Translation Difference-Net
Total 27,318.95 32,903.03 56,993.21 63,212.89 70,650.40

APPLICATION OF FUNDS
Fixed Assets
Gross Block 26,201.97 29,424.38 49,532.72 60,186.33 66,918.88
Less Depreciation 13,131.64 14,168.88 15,541.56 17,690.74 20,580.96
Net Block 1,3070.33 15,255.50 33,991.16 42,495.59 46,337.9
Capital work in progress 2,374.91 5,292.45 9,982.89 5,614.67 3,579.66
15,445.24 20,547.95 43,974.06 48,110.28 49,917.57
Investments 2,210.94 6,098.99 2,635.57 3,261.54 12,299.96
Current Assets, Loans And
Advances
Inventories 10,703.21 12,239.14 13,300.14 16,382.4 22,089.03
Sundry Debtors 5,228.75 3,758.35 9,579.74 10,220.61 11,852.13
Cash And Bank Balances 4,349.39 4,513.7 880.836 5,189.2 1,795.27
Loans And Advances 6,695.79 8,241.39 7,895.44 9,604.62 7,936.01
26,977.14 28,752.58 31,656.14 41,396.83 43,672.45
Less Current Liabilities And
Provisions
Liabilities 16,516.25 19,267.08 18,688.64 25,920.65 30,379.47
Provisions 1,042.3 3,452.31 2,680.82 3,686.91 4,903.26
17,558.55 22,719.39 21,369.46 29,607.56 35,282.74
Net Current Assets 9,418.59 6,033.187 10,286.68 11,789.27 8,389.71
Miscellaneous Expenditure 244.18 222.91 96.88 51.74 43.14
Total 27,318.95 32,903.03 56,993.21 63,212.83 70,650.40
�

68
 BIBLIOGRAPHY

[1] Khan, M.Y. and Jain, P.K. “Management Accounting”, fifth edition, Noida Tata
Mcgraw Hill Publication, 2014.
[2] Pandey, I. M. 2014. “Finacial Management”, Vikas Publishing House Pvt Ltd., New
Delhi, 2014.
[3] http://www.business-standard.com/india/news/ashok-leyland-chennai-rudrapur-plant-
launch/387497/
[4] http://www.indiaprwire.com/pressrelease/auto/2016030444861.htm
[5] http://www.ashokleyland.com/aboutus.jsp
[6] http://en.wikipedia.org/wiki/Ashok_Leyland
[7] Annual report of Ashok Leyland ltd 2012-13
[8] Annual report of Ashok Leyland ltd 2013- 14
[9] Annual report of Ashok Leyland ltd 2014- 15
[10] Annual report of Ashok Leyland ltd 2015-16
[11] Annual report of Ashok Leyland ltd 2016-17

69