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Board of Directors
R J Shahaney, Chairman
D G Hinduja, Co-Chairman (Alternate : Y M Kale)
D J Balaji Rao
A K Das (Alternate : P Banerjee)
P N Ghatalia
S R Krishnaswamy
S Raha
F Sahami
S Shroff
A Spare
R Seshasayee, Managing Director
Vinod K Dasari, Whole-Time Director
Chief Financial Officer
K Sridharan
Executive Directors
J N Amrolia
Aravind S Bharadwaj
S Balasubramanian
A Bhat
A K Jain
R Malhan
N Mohanakrishnan
M Natraj
R Rajagopal Menon
Rajive Saharia
Shekhar Arora
B M Udayashankar
Executive Director and Company Secretary
A R Chandrasekharan
Auditors
M S Krishnaswami & Rajan
Deloitte Haskins & Sells
Cost Auditors
Geeyes & Co.
Bankers
Bank of America
Bank of Baroda
Canara Bank
Central Bank of India
Citibank N.A.
HDFC Bank Limited
ICICI Bank Limited
IDBI Bank Limited
Punjab National Bank
Standard Chartered Bank
State Bank of India
The Hongkong and Shanghai Banking Corporation Limited
Registered office
19, Rajaji Salai, Chennai 600 001
Plants
Ennore and Ambattur, Chennai; Hosur, Tamil Nadu;
Bhandara, Maharashtra; Alwar, Rajasthan.
Website
www.ashokleyland.com
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Ashok Leyland Annual Report 08
Part I – Performance / Operations
The Directors are pleased to present the Annual Report of the Company, together with the audited Accounts, for the year ended
March 31, 2008.
Financial Results (Rs. Millions)
2007-2008 2006-2007
Profit before tax 6,381.50 6,045.06
Less: Provision for taxation 1,688.40 1,632.20
4,693.10 4,412.86
Add: Transfer from / (to):
Debenture redemption reserve 50.00 135.00
Balance profit from last year 3,616.86 2,303.70
General Reserve (1,000.00) (1,000.00)
7,359.96 5,851.56
Add: Excess provision written back
- Dividend (Including Corporate Dividend Tax) - 29.62
Profit available for appropriation 7,359.96 5,881.18
Appropriation:
Dividend 2006-07 - 1,985.81
Proposed Dividend 2007-08 1,997.71 -
Corporate Dividend Tax 339.51 278.51
Balance profit carried to Balance sheet 5,022.74 3,616.86
Earnings per Share (Face Value Re.1/-) - Basic 3.53 3.38
- Diluted 3.53 3.36
Directors’ Report
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Dividend
The Directors recommend a dividend of 150% (Rs.1.50 per
equity share of Re.1/-) for the year ended March 31, 2008.
This Dividend will also be payable on the shares arising from
conversion of Foreign Currency Convertible Notes (FCCNs)
issued in April 2004, to the extent converted upto the Book
Closure Date(s).
Business operations
The domestic market for the Company’s products experienced
a slowdown in the year under review. Your Company was
however able to secure a higher share in the passenger
vehicles market. Total sales of vehicles, engines and spares
registered increases over the previous year.
The highlights are discussed in detail in the Management
Discussion and Analysis Report attached as Annexure-D to
this Report.
External Commercial Borrowings (ECBs)
During the financial year, despite a difficult situation in the
financial market, the Company contracted for ECBs for a sum
of US$ 270 mn. to part fund its capex requirements and
overseas investments. Out of the above, the Company has
drawn US$ 90 mn. during the year 2007-08 and the balance
would be drawn during 2008-09. The Company has fully
complied with the guidelines prescribed by RBI in this regard.
Research and development, technology absorption, energy
conservation etc.
The Company continues to lay emphasis on investing for the
future through Research and Development activities. The
facilities in the Company’s Technical Centre at Chennai have
been further upgraded, to ensure contemporary development
capabilities in order to offer competitive products to the
market place.
The particulars prescribed by the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules,1988
relating to Conservation of Energy, Technology Absorption,
Foreign Exchange are furnished in Annexure-A to this Report.
Other Ventures
Joint Venture with Nissan Motor Co. Ltd., Japan
The Company will be expanding its business and entering the
area of Light Commercial Vehicles with the promotion of Joint
Venture with Nissan Motor Co. Ltd., Japan. Discussions on
the Joint Venture Agreements are in an advanced stage. This
will be a major project and will cater not only to the domestic
market, but also to the export markets.
Ashley Alteams India Private Ltd.
A Joint Venture Agreement was signed on July 3, 2007
with Alteams O.Y. Finland, for the manufacture and sale
of High Pressure Die Casting components for the telecom
and automotive industries, including for the Company’s
own requirements. Ashley Alteams India Private Ltd., the
Joint Venture Company, is making steady progress in the
implementation of the project. Commencement of commercial
production is expected by end 2008.
Automotive Infotronics Private Ltd.
A Joint Venture Agreement was entered into with Siemens
VDO on July 16, 2007 (now known as VDO Automotive A.G.
a Company of Continental Corporation, Germany) for design,
development and adaptation of electrical and electronic
automotive components and customer-specific software
applications. Automotive Infotronics Private Ltd., the Joint
Venture Company is slated to commence commercial activities
during 2008-09.
Ashok Leyland (UAE) LLC, Ras Al Khaimah, UAE
Your Company has made an investment in Ashok Leyland
(UAE) LLC for setting up a manufacturing facility at Ras Al
Khaimah, UAE. The plant is expected to be commissioned in
a phased manner by June 2008. The plant will have capacity
to assemble and produce upto 2000 buses per year and will
cater to the growing market for the Company’s products in
UAE and other neighbouring countries.
Defiance Testing and Engineering Services, Inc.
The investment in Defiance Testing and Engineering Service,
Inc. Michigan, USA was made on July 17, 2007. The
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Ashok Leyland Annual Report 08
company is implementing plans to turnaround, despite
recessionary conditions in the automobile industry in
the USA.
Avia Ashok Leyland Motors s.r.o. (AALM)
The commercial vehicles business of Avia acquired by the
Company in 2006, through a special purpose vehicle,
has made steady progress during the year 2007. During
this period, AALM focused on consolidating its business,
setting up processes, integrating its research and product
development activities with the Company, widening its market
reach, etc. AALM successfully developed and positioned
vehicles meeting Euro IV emission, safety and other standards
prevailing in Europe and achieved sales in excess of 700
units during the previous calendar year.
Albonair GmbH
Your Company has made an investment in Albonair GmbH
for development of vehicle emission treatment / control
systems and products. Albonair GmbH will focus on the
development, production and sales of exhaust after-treatment
systems for environment-friendly diesel engines. Over the
longer term, these cost effective systems are also expected
to find application in Europe and the USA. The venture has
already commenced operations and has been strengthened
with the recruitment of appropriate technical personnel.
Foreign Currency Convertible Notes (FCCNs)
The Foreign Currency Convertible Notes (FCCNs) for USD
100 mn. issued in April 2004 are convertible into shares of
the Company (Fixed Exchange Rate USD 1 = Rs.44.10). As
of March 31, 2008, 99,000 Notes (99%) have already been
converted into underlying shares, thereby increasing the
paid-up capital as of March 31, 2008.
All the procedures consequent to the conversion are being
completed on time and these shares, which rank pari passu
with the earlier shares in all respects, are tradeable on the
Indian Stock Exchanges. The enhanced share capital as on
March 31, 2008 and the corresponding revised shareholding
pattern are shown in the Corporate Governance Report
(Annexure-B) to this Report.
Subdivision of shares
The subdivision of your Company’s shares (from a face value of
Rs.10/- each to a face value of Re.1/- each) was effected in July
2004. The number of shareholders continues to increase and as
on March 31, 2008, the number of shareholders was 303,954
as against 200,091 shareholders as of March 31, 2007.
Part II – Corporate matters
Change in the Registered Office of the Company
Your Directors are happy to inform that your Company
has constructed a modern Corporate Office at a
prestigious location at No.1 Sardar Patel Road, Guindy,
Chennai 600 032. The registered office will be shifted to this
address shortly.
Corporate Governance
Your Company has consistently adopted high standards of
Corporate Governance. The Code of Conduct for the Board
and the Senior Management was adopted by the Company
in March 2005. Your Company is fully compliant with the
latest guidelines, and has even exceeded them in some
aspects. 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 and adherence
with the Code of Conduct. The details are furnished in
Annexure-B to this Report.
The certification by the Managing Director regarding the Code
of Conduct, as required by SEBI guidelines, is also furnished
separately.
The Statutory Auditors of the Company have examined the
Company’s compliance, and have certified the same, as
required under SEBI guidelines. Such certificate is reproduced
as Annexure-C to this Report.
The Directors’ Responsibility Statement as required under
Section 217(2AA) of the Companies Act, 1956 is furnished in
Annexure-E to this Report.
The particulars of employees as prescribed by the Companies
(particulars of employees) Rules, 1975 are furnished in
Annexure-F to this Report.
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The CEO / CFO certification as required under the SEBI
guidelines is attached - as Annexure-G to this Report.
Directors
The present term of Mr R Seshasayee, Managing Director
is due to expire on May 31, 2009. Under his stewardship,
the Company has scaled great heights and has expanded
its operations significantly. The Company has embarked
on several new initiatives, not only in India, but globally.
Bearing in mind the above, the Remuneration Committee
and the Board consider it essential to continue to secure his
leadership of the Company and have decided to foreclose /
overlap the last year of his current term and has re-appointed
him as Managing Director for a period of three years from
1/4/2008 to 31/3/2011 with a suitable revision in the terms
of remuneration, subject to the approval of the shareholders at
the ensuing General Meeting. Necessary resolutions relating
to his re-appointment are being placed before the shareholders
for approval.
Mr Vinod K Dasari, the Chief Operating Officer of the
Company, who was co-opted to the Board as an Additional
Director vacates office at the ensuing Annual General Meeting.
Notice under Section 257 of the Companies Act, 1956 has
been received from a member proposing his appointment as
a Director. Necessary resolution relating to his appointment
as Wholetime Director is also being placed before the
shareholders for approval.
Mr D J Balaji Rao, Mr P N Ghatalia and Mr D G Hinduja,
Directors, retire by rotation at the forthcoming Annual General
Meeting and are eligible for re-appointment.
Necessary resolutions are being placed before the
shareholders for approval.
Mr D J Balaji Rao and Mr P N Ghatalia are Independent
Directors and Chairman of the Remuneration Committee and
Audit Committee of the Board respectively. Mr D G Hinduja is
a Promoter Director.
Cost Auditors
The Government has stipulated Cost Audit of the Company’s
records in respect of motor vehicles as well as engines.
M/s Geeyes & Co., Cost Auditors have carried out these
audits. Their findings have been satisfactory.
Secretarial Audit
As directed by Securities and Exchange Board of India
(SEBI), Secretarial Audit is being carried out at the specified
periodicity by a Practising Company Secretary. The findings of
the Secretarial Audit have been satisfactory.
Auditors
M/s M S Krishnaswami & Rajan, Chartered Accountants and
M/s Deloitte Haskins & Sells, Chartered Accountants, retire at
the close of this Annual General Meeting and are eligible for
re-appointment. 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,
1956. The Audit Committee of the Board has recommended
their re-appointment. The necessary resolution is being placed
before the shareholders for approval.
Acknowledgement
The Directors wish to express their appreciation of the
continued co-operation of the Central and State Governments,
bankers, financial institutions, customers, dealers and
suppliers and also the valuable assistance and advice received
from major shareholders Hinduja Automotive Limited, the
Hinduja Group, and all the shareholders. The Directors also
wish to thank all the employees for their contribution, support
and continued co-operation through the year.
On behalf of the Board of Directors
Chennai R J SHAHANEY
May 8, 2008 Chairman
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Ashok Leyland Annual Report 08
(A) Conservation of Energy
All manufacturing plants have implemented various initiatives
for conservation of energy (around 1.2 mn. electrical units
have been saved leading to significant savings in costs) during
2007-2008.
A few such key initiatives are:
• Maintenance of power factor throughout the year, through
optimum use of capacitor banks.
• Use of wind power (Out of total electricity consumed, 36%
is the share of wind power).
• Optimisation of compressed air system.
(B) Technology absorption
Research and Development (R & D)
1. Specific areas in which R & D carried out by the Company
– ‘H’ series 6 cylinder engines rated at 152 KW (with
common rail) and 135 KW, both meeting Bharat Stage III
norms, now in commercial production.
– Fully built cabs introduced on tractor models with GVW
ratings of 49 and 40 tonnes.
– Pilot batch of 8X2 vehicles being launched in the market.
2. Benefits derived as a result of the above R & D
– Compliance with emission standards, present and proposed
from 2010.
– Wider range of vehicles with enhanced value to customer.
– Safer cabs.
3. Future Plan of Action
– Quantum improvement in processes and skill building to
meet the emerging competitive scenario in the market.
– Development of more environment friendly fuel efficient and
safe vehicles.
4. Expenditure on R & D
(Rs. million)
Capital 954.39
Revenue
(excluding depreciation) 1068.84
Total 2023.23
Total R & D Expenditure
as % of total turnover 2.3%
(C) Foreign Exchange Earnings and Outgo
Details of earnings and outgo of foreign exchange are given in
Schedules 1.5 to 1.8 of Notes to the Accounts. The Company
continues to strive to improve its export earnings.
Annexure A to Directors’ Report
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1. Philosophy on Corporate Governance
The Board of Directors and the Management of Ashok Leyland
commit themselves to:
• strive towards enhancement of shareholder value through
– sound business decisions
– prudent financial management and
– high standards of ethics throughout the organisation
• ensure transparency and professionalism in all decisions
and transactions of the Company
• achieve excellence in Corporate Governance by
– conforming to, and exceeding wherever possible, the
prevalent mandatory guidelines on Corporate Governance
– regularly reviewing the Board processes and the
Management systems for further improvement
The Company has adopted a Code of Conduct for members of
the Board and senior management. All Directors have affirmed
in writing their adherence to the above Code. The full text of
the Code is furnished at the end of this Report, and is also
displayed at the Company’s website www.ashokleyland.com
2. Board of Directors
a) Composition : The Board of Directors of the Company,
headed by a Non-executive Chairman, consisted of the
following Directors, as on March 31, 2008, categorised as
indicated:
i) Non-executive Directors
a) Promoter Group
Mr A K Das (Alternate: Mr P Banerjee)
Mr D G Hinduja (Co-Chairman) (Alternate: Mr Y M Kale)
Mr S Raha
Mr F Sahami
Mr A Spare
Annexure – B to Directors’ Report Report on Corporate Governance
b) Connected with Associate Companies
Mr R J Shahaney (Chairman)
c) Independent
Mr D J Balaji Rao
Mr P N Ghatalia
Mr S R Krishnaswamy (representing LIC as shareholder)
Mr S Shroff
ii) Executive Director
Managing Director
Mr R Seshasayee
None of the Directors is related to each other.
Equity Shares held by Directors
Name of the Director No. of equity shares
Mr R J Shahaney 11,730
Mr R Seshasayee 11,236
There are no other shares or convertible instruments held by
any other Director(s)
b) Attendance at Board Meetings and last Annual General Meeting (AGM) and details of memberships of Directors in other Boards and Board Committees
Board Meetings held during the year 2007-08
Date of Meeting Board StrengthNo. of Directors
present
April 5, 2007 11 6
May 4, 2007 11 10
July 19, 2007 11 10
October 23, 2007 11 11
January 25, 2008 11 9
– The time gap between any two meetings did not exceed four
months.
– The last Annual General Meeting was held on July 20,
2007.
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Ashok Leyland Annual Report 08
Name of Director No. of Board meetings attended
Whether attended last A.G.M. held on July 20, 2007
Membership as on March 31, 2008
Other Boards (excluding Ashok Leyland)(Note 2)
Other Board Committees (excluding Ashok Leyland)(Note 3)
Mr R J Shahaney 5 Yes 2
(Both as Chairman)
2
(1 as Chairman)
Mr D G Hinduja (Note 1) 3 Yes 6 Nil
Mr D J Balaji Rao 5 Yes 8 8
(3 as Chairman)
Mr A K Das 4 Yes 10 1
Mr P N Ghatalia 5 Yes 8 8
(4 as Chairman)
Mr S R Krishnaswamy 5 Yes 1 Nil
Mr S Raha 4 Yes 3 1
Mr F Sahami 4 Yes 1 1
Mr S Shroff 1 No 6 4
Mr A Spare 4 Yes 2 Nil
Mr R Seshasayee 5 Yes 8
(5 as Chairman)
3
Alternate Directors:
Mr P Banerjee 1 No 2 Nil
Mr Y M Kale Nil No 3 1
(1 as Chairman)
Note 1 - Re-designated as Co-Chairman, effective July 19, 2007
Note 2 - The above excludes Foreign companies, Private Limited Companies and Alternate Directorships.
Note 3 - Only Audit Committee, and Shareholders/Investors Grievance Committee are reckoned for this purpose.
The full details of Directors seeking re-appointment at the
ensuing Annual General Meeting have been furnished in the
Notice convening the meeting of the Shareholders.
Secretarial Standards
The Institute of Company Secretaries of India (ICSI) has laid
down Standards on Secretarial Practices relating to meetings
of the Board and Board Committees, General Meetings,
Dividends etc. The Secretarial and the operating practices of
the Company are in line with the above Secretarial Standards.
All the information required under Annexure-I to Clause-49 of
the Listing Agreements with Stock Exchanges are being placed
before the Board at every meeting, with the current status
duly updated.
3. Audit Committee
a) Constitution
The Audit Committee of the Company was constituted in
July 1987 with Terms of Reference, which covered most of
the aspects stipulated by SEBI in the year 2000. These were
comprehensively reviewed once again by the Company’s
Board in the year 2000, and the Audit Committee has been
mandated with the same Terms of Reference as specified in
Clause 49 of the Listing Agreements with Stock Exchanges.
The Terms of Reference also fully conform to the requirements
of Section 292A of the Companies Act, 1956.
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b) Composition, names of members and Chairman
The composition of the Audit Committee:
Independent Directors
Mr P N Ghatalia (Chairman)
Mr D J Balaji Rao
Promoter Director
Mr F Sahami
All the members of the Audit Committee have expertise in Finance as well as in general management. Mr. P N Ghatalia and Mr
F Sahami had been senior partners in leading firms of Chartered Accountants. Mr D J Balaji Rao had been the Deputy Managing
Director of the then ICICI Ltd., (now ICICI Bank) and the Managing Director of Infrastructure Development Finance Company Ltd.
c) Meetings and Attendance
Audit Committee Meetings held during the year 2007-08 and Attendance Details
Attendance: Date of Meeting Committee Strength No. of Directors present
May 2, 2007 3 3
July 18, 2007 3 3
October 23, 2007 3 3
January 25, 2008 3 3
• Mr A R Chandrasekharan, Executive Director and Company Secretary is the Secretary to the Committee effective February 6, 2008.
• Mr N Sundararajan, Executive Director and Company Secretary was the Secretary to this Committee till February 5, 2008 and
has attended the Meetings of the Committee till February 5, 2008.
• Mr N Mohanakrishnan, Executive Director heading the Internal Audit function has attended all the meetings of the Committee.
• Mr K Sridharan, Chief Financial Officer, attended all the meetings of the Committee.
The Statutory Auditors of the Company and the Cost Auditors
are invited to join the Audit Committee Meetings. The Audit
Committee discusses with the Statutory Auditors on the
“Limited Review” of the quarterly/half-yearly accounts, the
Audit Plan for the year, matters relating to compliance with
Accounting Standards, the Auditors’ observations arising
from the annual audit of the Company’s accounts, and other
related matters. The Committee also reviews at every meeting
the significant observations arising from the Reports of the
Internal Audit Department and the adequacy of the follow-up
action taken by the Management. The Committee discusses
with the Cost Auditors about the Annual Cost Audit Reports,
and their observations.
4. Remuneration Committee
a) The Remuneration Committee consists of
Mr D J Balaji Rao, Independent Director, as the Chairman
of the Committee, with Mr R J Shahaney and Mr F Sahami
being the other members.
Mr A R Chandrasekharan, Executive Director and Company
Secretary is the Secretary to the Committee effective
February 6, 2008.
Mr N Sundararajan, Executive Director & Company Secretary
was the Secretary to this Committee till February 5, 2008.
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Ashok Leyland Annual Report 08
The Committee is mandated with the following Terms of
Reference:
- Determination and approval of the quantum of commission,
perquisites and payment of special allowance to the Managing
Director; and
- Determination and approval of the annual increments to the
Managing Director .
The above determinations are based on the overall
performance of the Company and on the Committee’s
assessment of the personal contribution and achievements of
the Managing Director, but within the overall limits approved
by the shareholders.
b) The Committee met once during the year on May 4, 2007.
All the members were present at this meeting.
c) The Remuneration Policy of the Company is summarised as
follows:
(i) For Managing Director
The total remuneration, subject to shareholders’ approval,
consists of
• a fixed component – consisting of salary, allowances
(including Special Allowance) and perquisites; the perquisites
and benefits are in line with the Company’s Rules for senior
managerial personnel.
• a variable component – linked to the performance of the
Company as well as of the Managing Director – consisting
of Commission and allowances as determined by the
Remuneration Committee.
• No Sitting Fee is payable.
(ii) For Non-executive Directors
Sitting Fee is paid as per the Companies Act, 1956, and
the Articles of Association of the Company, for attending
any meeting of the Board or Committees of the Board.
Directors are also reimbursed actual travel costs and
incidental expenses incurred for attending such meetings or
in connection with the Company’s business. There are no
pecuniary relationship or transactions between any of the
Non-executive Directors and the Company. No other fee is
paid to Non-executive Directors other than the above.
d) The details of remuneration paid / payable to the Directors for the year 2007-08 are:
i) Non-executive Directors – Sitting Fees: (excluding reimbursement of travel and other expenses incurred for the Company’s business)
Rs. Rs.
Mr R J Shahaney 320,000 Mr S R Krishnaswamy 100,000
Mr D G Hinduja 120,000 Mr S Raha 80,000
Mr D J Balaji Rao 280,000 Mr F Sahami 180,000
Mr P Banerjee, Alt. Director 20,000 Mr S Shroff 20,000
Mr A K Das 80,000 Mr A Spare 160,000
Mr P N Ghatalia 180,000
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35
ii) Managing Director
(Rs.)
a) Fixed Component
(i) Salary 2,890,000
(ii) Perquisites (**) 5,911,406
(iii) Special Allowance 5,780,000
b) Variable Component
Commission 5,780,000
Total 20,361,406
(**) Certain perquisites are valued as per the Income Tax
Rules. Does not include contribution to Provident Fund
@ 12% and Superannuation Fund @ 15% of the salary.
Mr. Seshasayee, Managing Director is under contract of
employment with the Company. There is also a contract
corresponding to his appointment as Managing Director,
stipulating 3 months’ notice period from either side. There is
no severance fees payable to him.
The Company does not have Employee Stock Options Scheme
in force.
5. Shareholders/Investors Grievance Committee
a) The Shareholders/Investors Grievance Committee has
been functioning since August 2000. Mr R J Shahaney is the
Chairman of the Committee; Mr D J Balaji Rao, Independent
Director and Mr R Seshasayee, Managing Director are the
other members. This Committee presently deals with and
approves all share transfers, transmissions and also all other
matters relating to investor relations and grievances. From
January 31, 2006, the Committee has also been empowered
to allot shares upon conversion of the Foreign Currency
Convertible Notes issued in April 2004.
Mr A R Chandrasekharan, Executive Director and Company
Secretary is the Secretary to Committee effective February 6,
2008 and is also the Compliance Officer nominated for this
purpose.
Mr N Sundararajan, Executive Director & Company Secretary
was the Secretary to this Committee and Compliance Officer
till February 5, 2008.
Meetings and Attendance
Shareholders / Investors Grievance Committee Meetings held
during the year 2007-2008 and attendance details
Date of Meeting Committee strength
No. of Directors Present
May 4, 2007 3 3
July 6, 2007 3 2
July 19, 2007 3 3
August 20, 2007 3 2
October 23, 2007 3 3
January 25, 2008 3 3
c) The Committee 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. The manner and timeliness of
dealing with complaint letters received from Stock Exchanges/
SEBI / Department of Company Affairs (DCA) etc. and the
responses thereto, are reviewed by this Committee.
During the year, 811 complaint letters were received from
investors; 2633 letters (including 19 letters from SEBI / Stock
Exchanges / DCA) were received on routine matters; all these
were dealt with satisfactorily. The very few letters, which
occasionally remained pending beyond the normal time limits
were cases of inadequate documentation or clarifications
being awaited.
For the seventh year in succession, the Company conducted
an Investor Satisfaction Survey through a questionnaire,
which was mailed along with the Notice of AGM 2007. 1567
investors had responded to the Survey. A vast majority of
them have expressed high degree of satisfaction about various
aspects of investor servicing. A few issues raised by some
investors were pursued and dealt with satisfactorily.
At the October 2007 meeting, the Committee also reviewed
the Special Report analysing the feedback from the Investor
Satisfaction Surveys, and approved the steps taken for further
improvements in investor servicing.
d) As on March 31, 2008, there was one share transfer
pending; this was completed within the due date.
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Ashok Leyland Annual Report 08
6. General Body Meetings
a) Details of location and time of holding the last three AGMs.
Year Location Date & Time
56th AGM - 2005Narada Gana Sabha,
314 TTK Road, Chennai – 600 018
July 26, 2005
10.30 a.m.
57th AGM - 2006
Kamaraj Memorial Hall,
492 Anna Salai,
Teynampet, Chennai 600 006
August 1, 2006
10.00 a.m.
58th AGM - 2007Narada Gana Sabha,
314 TTK Road, Chennai – 600 018
July 20, 2007
10.25 a.m.
The Chairman of the Audit Committee was present at all the
above AGMs.
Details of EGMs held in the last three years: NIL
b) All the Special Resolutions placed before the shareholders
at the above meetings were approved. There were no
resolutions requiring approval through Postal Ballot.
7. Disclosures
There have been no materially significant related party
transactions with the Company’s Promoters, Directors, the
Management, their Subsidiaries or relatives which may have
potential conflict with the interests of the Company. The
necessary disclosures regarding the transactions with Related
Parties are given in the Notes to the Annual Accounts for the
year 2007-08.
There have been no instances of non-compliance by the
Company on any matters related to the capital markets, 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.
The Company had no subsidiary company as on
March 31, 2008.
8. Means of Communication
a) Half-yearly mailer communication is being sent since the
year 2001 with an enclosure of half-yearly results. This is also
displayed on the Company’s website www.ashokleyland.com
b) The quarterly results are being generally published in one
leading national (English) business newspaper and in one
vernacular (Tamil) newspaper. The quarterly results are also
displayed on the Company’s website www.ashokleyland.com
c) The Company’s website also displays milestones, official
press / news releases, Presentations made to institutional
investors and analysts, and several other details / information
of interest to various stakeholders.
d) A Management Discussion and Analysis Report is being
presented as a part of the Annual Report.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 37 6/25/2008 7:27:18 PM
37
9. General Shareholder Information
a) 59th Annual General Meeting
– Day, Date and Time
– Venue
Wednesday, July 30 2008 – 10.30 a.m.
Kamaraj Memorial Hall,
492 Anna Salai, Teynampet, Chennai 600 006
b) Financial Calendar
Annual General Meeting
Unaudited results for the quarter ending June 30, 2008
Unaudited results for the quarter/half-year ending September 30, 2008
Unaudited results for the quarter ending December 31, 2008
Audited Results for the year ending March 31, 2009
July 30, 2008
July 29, 2008
Last week of October 2008
Last week of January 2009
Before end of May 2009
c) Book Closure Date From July 18, 2008 to July 30, 2008 (both days inclusive)
d) Dividend payment date Commencing July 30, 2008 – to be completed within the mandatory time limit.
e) Listing of Equity Shares
Listing of Global Depository Receipts
(GDRs)
Listing of Foreign Currency Convertible
Notes (FCCNs)
Madras Stock Exchange Ltd.
Bombay Stock Exchange Ltd.
National Stock Exchange of India Ltd.
London Stock Exchange
London Stock Exchange
The Listing Fees have been paid uptodate, to all the Stock Exchanges
f) Stock Code
Trading Symbol at
Demat ISIN Numbers in NSDL & CDSL
Madras Stock Exchange Ltd.
Bombay Stock Exchange Ltd.
(Physical)
(Demat)
National Stock Exchange of India Ltd.
Equity Shares
ALL
477
500477
ASHOKLEY
INE208A01029
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 38 6/25/2008 7:27:18 PM
38
Ashok Leyland Annual Report 08
39
}
i) Registrar and Transfer Agents:
The Company has appointed M/s Integrated Enterprises
(India) Ltd., 2nd Floor, Kences Towers, 1 Ramakrishna Street,
North Usman Road, T. Nagar, 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. The few residual matters relating to the fixed
deposits are dealt with directly by the Company
j) Share Transfer System
The authority relating to transfer of shares and allied work
relating to servicing of investors has been delegated by the
Board to the Shareholders / Investors Grievance Committee
which consists of Mr R J Shahaney (Chairman), Mr D J Balaji
Rao and Mr R Seshasayee.
In order to further improve and speed up investor servicing,
the Board has authorised the Managing Director individually
to approve all routine transfers, transmissions etc. of shares.
Such approval is being given by the Managing Director
at frequent/regular intervals (30 times during 2007-08).
Transfers, transmissions etc., were generally approved within
10 days; requests for dematerialisation were confirmed
within 9 days (as against the norm of 15 days). In addition,
the Committee met 6 times during the year 2007-08 for
approving specific transfers, transmissions, etc., reviewing
investor grievances and to allot shares upon conversion of
FCCNs.
g) Stock Market Data
Bombay Stock Exchange National Stock Exchange
Share Price Sensex Points Share Price S & P CNX Nifty Points
Month High(Rs.)
Low(Rs.)
High Low High(Rs.)
Low(Rs.)
High Low
April 2007 40.45 35.15 14,383.72 12,425.52 40.50 34.00 4,217.90 3,617.00
May 2007 40.50 36.60 14,576.37 13,554.34 40.50 35.45 4,306.75 3,981.15
June 2007 39.00 35.40 14,683.36 13,946.99 39.00 35.25 4,362.95 4,100.80
July 2007 40.80 36.65 15,868.85 14,638.88 40.90 36.75 4,647.95 4,304.00
Aug 2007 38.70 33.90 15,542.40 13,779.88 38.65 33.10 4,532.90 4,002.20
Sep 2007 46.30 36.70 17,361.47 15,323.05 46.40 36.50 5,055.80 4,445.55
Oct 2007 47.00 34.00 20,238.16 17,144.58 46.95 34.00 5,976.00 5,000.95
Nov 2007 48.85 36.80 20,204.21 18,182.83 49.80 36.40 6,011.95 5,394.35
Dec 2007 55.10 45.25 20,498.11 18,886.40 55.00 45.50 6,185.40 5,676.70
Jan 2008 57.90 25.80 21,206.77 15,332.42 57.50 26.15 6,357.10 4,448.50
Feb 2008 40.00 33.75 18,895.34 16,457.74 40.00 33.70 5,545.20 4,803.60
Mar 2008 38.35 30.60 17,227.56 14,677.24 38.40 30.60 4,947.00 4,468.55
h) Share Price performance in comparison to broad based indices – BSE Sensex and NSE Nifty
Share Price Movement (BSE) See Table above & Chart on page 44.
Share Price Movement (Nifty)
ASHOKLeyland_082-895-1_AR2K7-8_Ord_2 co_pg 26-94.indd 39 7/4/2008 3:54:29 PM
k) (i) Distribution of Shareholding as on March 31, 2008
No. of Shares Shareholders No. of Shares
Number % Number %
Upto 50 45590 15.00 1494673 0.11
51-100 68805 22.64 6665062 0.50
101-200 51230 16.85 9483846 0.71
201-500 69500 22.86 27732338 2.08
501-1000 35230 11.59 30284268 2.28
1001-2000 18778 6.18 29162214 2.19
2001-5000 11007 3.62 35641361 2.68
5001-10000 2327 0.77 17440041 1.31
10001 & above 1487 0.49 1172434514 88.14
Total 303954 100.00 1330338317 100.00
Sl. No.
Category No. of Holders No. of Shares %
1 Promoter – Hinduja Automotive Limited.
(Includes 164600070 shares in GDR Form)
1 678218782 50.98
2 Residents (Individuals / Clearing Members) 299157 191330930 14.38
3 Financial Institutions / Insurance Co. / State Govt. / Govt.
Companies / UTI
23 202097566 15.19
4 Foreign Institutional Investors 75 156390047 11.76
5 Non-Resident Indians/ OCB / Corporate Bodies – Foreign /
Bank – Foreign / Foreign Nationals
2244 23173515 1.74
6 Corporate Bodies 2351 33783599 2.54
7 Mutual Funds 28 29894970 2.25
8 Trusts 26 242730 0.02
9 Banks 47 1094678 0.08
10 Others – GDR 2 14111500 1.06
Total 303954 1330338317 100.00
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 40 6/25/2008 7:27:18 PM
40
(ii) Pattern of Shareholding as on March 31, 2008 (See Chart on page 44)
Ashok Leyland Annual Report 08
l) Dematerialisation of shares and Liquidity
Shares of the Company can be held and traded in electronic form. As stipulated by SEBI, the shares of the Company are accepted in
the Stock Exchanges for delivery only in dematerialisation form.
Status of Dematerialisation of Shares – as on March 31, 2008
Physical Demat Total
Holders No. of Shares % to paid-up capital
No. of Shares(**)
% to paid-up capital
No. of Shares(**)
% to paid-up capital
Hinduja
Automotive
Limited * 441166680 33.16 237052102 17.82 678218782 50.98
Others 21478383*** 1.61 630641152 47.41 652119535 49.02
* held in one consolidated share certificate ** including in GDR Form
*** held by approx. 20850 holders
Shares of the Company are actively traded in the Bombay and
National Stock Exchanges, and hence have good liquidity.
m) Subdivision of Shares
Each equity share of face value of Rs.10/- was subdivided
into 10 equity shares of face value of Re.1/- each, effective
from July 7, 2004. Following the subdivision, there has been
a significant increase in the number of shareholders; as at
March 31, 2008, there were 303954 shareholders.
n) Outstanding GDR / Warrants and Convertible Notes, Conversion date and likely impact on the equity
No GDR is outstanding for conversion as on March 31, 2008
and hence there is no impact on equity.
After obtaining the approval of the shareholders at the
Extraordinary General Meeting held on February 28, 2004,
the Company issued Foreign Currency Convertible Notes
(FCCNs) for USD100 million in April 2004 to investors in the
overseas market. As per the terms of the Issue, these Bonds
are convertible into GDSs or convertible into the underlying
shares @ 1422.581 shares (of face value Re 1/- each) per
Note of USD1000, at a conversion price (reset in 2005) of
Rs 31/- per share at the option of the investors.
Consequent to the declaration of an interim dividend of 150%
(Rs 1.50 per share) for the year 2006-07, the conversion
price has once again been reset in April 2007 to Rs 30/- per
equity share.
From February 2006 the Company has been receiving
requests from the holders of FCCNs seeking to convert
the Notes held by them into underlying shares. Upto
31/03/2008, 99000 (99%) FCCNs have been converted
into 141044117 shares. All the statutory / contractual
obligations relating to such conversions have been fulfilled
in time, and such additional shares (upon conversion) have
admitted for trading at all the listed Stock Exchanges. As of
March 31, 2008 only 1000 FCCNs remained outstanding for
conversion.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 41 6/25/2008 7:27:18 PM
41
o) Plant Locations
Ennore
Ennore
Chennai 600 057
Tamil Nadu
Hosur – Unit I
175 Hosur Indl. Complex
Hosur 635 126
Tamil Nadu
Hosur – Unit II
77 Electronic Complex
Perandapalli Village
Hosur 635 109
Tamil Nadu
Hosur – Unit IIA
Cab Panel Press Shop
SIPCOT Industrial Complex
Mornapalli village
Hosur 635 109
Tamil Nadu
Bhandara
Plot No.1 MIDC Industrial Area Village
Gadegaon,
Sakoli Taluk, Bhandara 441 904
Maharashtra
Alwar
Plot No. SPL 298
Matsya Indl. Area
Alwar 301 030
Rajasthan
Ambattur, Chennai
3A/A & 2 North Phase
SIDCO Industrial Estate
Ambattur
Chennai 600 098
Tamil Nadu
Technical Centre
Vellivayal Chavadi
Via Manali New Town
Chennai 600 103
Tamil Nadu
p) Address for Correspondence
To contact R & TA for all matters
relating to Shares, Dividends,
Annual Reports
M/s Integrated Enterprises
(India) Limited
2nd Floor, Kences Towers
1, Ramakrishna Street
North Usman Road
T. Nagar, Chennai 600 017
Tel: 91-44 – 2814 0801 / 03
Fax: 91-44 – 2814 2479
e-mail: [email protected]
For any other general matters or in
case of any difficulties/ grievances
Secretarial Department
Ashok Leyland Limited
Khivraj Complex II, 5th Floor
477-482 Anna Salai
Nandanam, Chennai 600 035
Tel: 91-44 – 2433 1120 / 2433 1128 /
2433 1129
Fax: 91-44 – 2433 5633
e-mail: [email protected]
For Fixed Deposits Mr R Venugopalan
Dy General Manager – Finance
Ashok Leyland Limited
Ennore, Chennai 600 057
Tel: 91-44 – 2575 1001 / 2575 0233
Fax: 91-44 – 2575 1798
e-mail: [email protected]
Website address www.ashokleyland.com
E-mail ID of Investor
Grievances Section
Name of the Compliance Officer A R Chandrasekharan
Executive Director &
Company Secretary
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 42 6/25/2008 7:27:19 PM
42
Ashok Leyland Annual Report 08
Non Mandatory Requirements
1. Non-executive Chairman
The Company maintains the office of the Non-executive
Chairman and reimburses expenses incurred in the
performance of his duties.
2. Remuneration Committee
The Company has constituted a Remuneration Committee; full
details are furnished under Item 4 of this Report.
3. Shareholder Rights
The statements of quarterly and half-yearly results are being
published in the Press. The Company has been mailing
half-yearly reports to shareholders from October 2001,
along with a letter from the Managing Director highlighting
significant events.
4. Postal Ballot
The Company has had no occasion so far to use the postal
ballot.
5. Whistle Blower Policy
The Company does not have a Whistle Blower Policy, but has
an independent Ombudsman, who is not an employee of the
Company.
Revised SEBI Guidelines on Corporate Governance
The Company is fully compliant with the revised SEBI
Guidelines.
Code of Conduct
Members of the Board and the Senior Management, shall
a) Always act in the best interests of the Company and its
stakeholders.
b) Adopt the highest standards of personal ethics, integrity,
confidentiality and discipline in dealing with all matters
relating to 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, and not be
associated simultaneously with competing organisations
either as a Director or in any managerial or advisory capacity,
without the prior approval of the Board.
d) Always adhere and conform to the various statutory and
mandatory regulations/guidelines applicable to the operations
of the Company avoiding violations or non-conformities.
e) Not derive personal benefit or undue advantages (financial
or otherwise) by virtue of their position or relationship with the
Company, and for this purpose
i) shall adopt total transparency in their dealings with
the Company
ii) shall disclose full details of any direct or indirect
personal interests in dealings/transactions with the
Company.
iii) shall not be party to transactions or decisions
involving conflict between their personal interest and
the Company’s interest.
f) Conduct themselves and their activities outside the
Company in such manner as not to adversely affect the image
or reputation of 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.
h) Bring to the attention of the Board, Chairman or the
Managing Director as appropriate, any information or
development either within the Company (relating to its
employees or other stakeholders) or external, which could
impact the Company’s operations, and which in the normal
course may not have come to the knowledge of the Board/
Chairman or Managing Director.
i) Always abide by the above Code of Conduct, and shall
be accountable to the Board for their actions / violations /
defaults.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 43 6/25/2008 7:27:19 PM
43
Share price movement
25
34
43
52
61
70
Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08
40.50 40.50 39.0040.90
38.65
46.40 46.9549.80
55.00 57.50
40.00 38.40
34.0035.45 35.25 36.75
33.10 36.50 34.0036.40
45.50
26.15
33.7030.60
4087.90 4295.80 4318.304528.85
4464.005021.35
5900.65
5762.75
6138.60
5137.45 5223.50
4734.50
Rs.S&P
CNX NiftyNSE - April 2007 to March 2008
25
34
43
52
61
70Rs. SensexBSE - April 2007 to March 2008
40.45 40.50 39.00 40.8038.70
46.30 47.00 48.85
55.1057.90
40.00 38.35
35.15 36.60 35.40 36.6533.90
36.7034.00
36.80
45.25
25.80
33.7530.60
13,872.37
14,544.46
14,650.51
15,550.99
15,318.60
17,291.10 19,837.99
19,363.19
20,286.99
17,648.71
15,644.44
17,578.72
Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08
0
1400
2800
4200
5600
7000
0
4200
8400
12600
16800
21000
Trusts (0.02%)
Mutual Funds (2.25%)
Promoter Hinduja Automotive Limited (50.98%)
Banks (0.08%)
Others (1.06%)
Financial Institutions / Insurance Co. / State Govt. / Govt. Companies / UTI (15.19%)
Residents (Individuals / Clearing Members) (14.38%)
Foreign Institutional Investors (11.76%)
Non-Resident Indians/ OCB / Corporate Bodies – Foreign / Bank – Foreign / Foreign Nationals (1.74%)
Corporate Bodies (2.54%)
Shareholding pattern as on March 31, 2008
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 44 6/25/2008 7:27:20 PM
44
Ashok Leyland Annual Report 08
Auditors’ Certificate on Compliance with the Conditions of Corporate Governance under Clause 49 of the Listing Agreements
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, 2008 as stipulated in Clause 49 of the listing agreement of the said company with the stock
exchanges in India, 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.
2. The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination has been
limited to procedures and implementation thereof, adopted by the Company for ensuring the said compliance. It is neither an
audit nor an expression of opinion on the financial statements of the Company.
3. Based on the aforesaid examination and according to the information and explanations given to us, we certify that the Company
has complied with the said conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.
4. 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.
For M S Krishnaswami & Rajan
Chartered Accountants
M K Rajan
Partner
Membership No. 4059
For Deloitte Haskins & Sells
Chartered Accountants
R Laxminarayan
Partner
Membership No. 33023
May 8, 2008
Chennai
Annexure – C to Directors’ Report
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 45 6/25/2008 7:27:20 PM
45
A. Economy and Market trends
Global economy
Global economy grew strongly although the current turbulence
in financial markets has clouded prospects. The growth
was supported by generally sound fundamentals and strong
momentum in emerging market economies.
Looking ahead, contribution from developing countries to the
total GDP growth is expected to sustain at higher levels. This
is likely to result in huge capital inflows into the developing
countries. The share of the developing countries in world trade
will also continue to increase, resulting in significant export
opportunities. However, global inflation levels, fuelled by the
sharp increase in global commodity prices as well as by the
growth of developing countries such as China and India, are
expected to remain high.
Indian Economy
After robust growth over the past few years, Indian economy
witnessed a slowdown during 2007-08. GDP growth for
2007-08 as projected by the Government at 8.7% shows
a deceleration from the high growth of 9.4% and 9.6%,
respectively, in the previous two years. With the economy
modernizing, globalizing and growing rapidly, some degree of
cyclical fluctuation is to be expected.
Last year, inflation flared up driven primarily by increase in
the prices of coal and crude oil. This has, to some extent,
adversely impacted the pace of economic growth in the short
term, particularly the growth in the industrial sector, compared
to the previous year.
Accompanying the recent moderation in industrial growth, the
growth performance of some segments of the infrastructure
sector such as power generation and movement of railway
freight, as also the production of universal intermediates
such as steel, cement and petroleum, have shown subdued
performance.
Annexure D to Directors’ Report
Management Discussion and Analysis ReportIndia’s Eleventh five year plan paper projects a GDP growth
of 8.5% through a boost to growth in the agriculture sector,
improving infrastructure aggressively and encouraging
Public Private Partnerships for construction and operations
of infrastructure services such as highways, airports and
ports etc. The country is expected to continue the strong
momentum of the past and take the economy back on the
growth path of around 9%.
Commercial Vehicle (CV) Industry
The share of ‘Second hemisphere’ markets in the Global
Commercial Vehicle market is increasing. BRIC (Brazil,
Russia, India and China) countries are emerging as the key
markets among the ‘Second hemisphere’ countries. Other
‘Second hemisphere’ markets such as Eastern Europe, Latin
America, and ASEAN are also witnessing strong growth.
With India being the next large and lucrative market after
China, global players are entering the Indian market in
association with local partners. Besides, local players are
also diversifying their business to have a sizeable share in the
total commercial vehicle market. With global majors planning
to invest around Rs. 60 billion in the coming year to create
capacities, the Indian CV market is likely to get crowded.
Technology trends in the global commercial vehicle industry
are being increasingly driven by tighter emission standards
and demanding customer requirements. These are set to
dictate tougher tasks to new product development teams
worldwide in terms of providing products with high ‘value-cost’
equation.
The Indian commercial vehicle market continues to accelerate
towards the “hub and spoke” model present in the mature
markets worldwide. Of the total industry volume in the
Indian commercial vehicle industry over the last few years,
contribution from vehicles in the sub 7.5 T GVW and greater
than 16 T GVW segments has been continuously increasing.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 46 6/25/2008 7:27:20 PM
46
Ashok Leyland Annual Report 08
Economic growth in agricultural and industrial sectors
coupled with the Government’s emphasis on infrastructure
development will continue to fuel the demand in India for
commercial vehicles. The Automotive Mission Plan 2016,
approved by the Government, is focusing on doubling the
contribution of automobile industry to the country’s GDP
by 2016. The Government has indicated that a balanced
approach would be pursued with regard to trade agreements
with countries / regions such as ASEAN, China, Sri Lanka,
Latin America and Middle East to provide growth opportunities
for the Indian automotive industry.
Product trends in the Indian commercial vehicle market point
towards an increase in the electronics content in vehicles
and a shift towards higher power to-weight ratios. These
trends will also be driven by legislations pertaining to vehicle
safety and comfort including the imminent “Bus Body Code”
and “Truck Code”. These measures to create an organized
and regulated commercial vehicle industry in the country
will enable commercial vehicle manufacturers to broaden
their presence across the value chain and offer
products with much higher levels of value addition
than those presently available.
The logistics industry in India is expected to undergo
large scale consolidation with the emergence
of more organized players who would use high
end commercial vehicles for long hauls and light
commercial vehicles for the last mile distribution.
Increasing awareness of all stakeholders in the
Indian transport and logistics sector will drive the
demand for fully built vehicle solutions that are
engineered for specific applications.
Increasing urbanization has highlighted the need for mass
rapid passenger transportation within the cities. Government
bodies are looking at a Bus Rapid Transport Systems (BRTS)
as a possible solution. Product trends for city buses will be
significantly driven by these developments. In addition to
this, the development of the road network between cities will
influence product trends for inter-city buses.
B. Ashok Leyland – The year in brief
Indian medium and heavy commercial vehicle industry
shrunk marginally during 2007-08 compared to 2006-07.
The Company sold 76,045 vehicles in the Indian market
during the fiscal 2007-08. The Company registered significant
market share improvement in the bus segment but lost
market share in the truck segment mainly due to production
constraints arising out of supply chain bottlenecks. These have
been addressed satisfactorily and the Company is on course to
recover lost ground. The “New Gen” cabin, expected to be bulk
produced in 2008-09, will further aid this exercise.
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02 8420 19103
23969
33518
37151
65069
42608
57847
27523
33894
44872
47928
77075
56776
76045
9925
11354
10777
14168
12006
18198
Domestic SalesBuses Trucks
0
10
20
30
40
50
60
70
80
90
100
2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02
Up to 7.5-ton > 7.5 - 16.2-ton > 16.2-ton
-
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 47 6/25/2008 7:27:20 PM
47
The Company sold 7,285 vehicles in the overseas markets
during 2007-08 – representing an increase of approximately
21% over the previous year.
Engines business has shown robust growth during 2007-08.
A total of 12,169 engines were sold, including engines sold
under the LEYPOWER brand of generator sets, a new line of
business being pursued by the Company.
Spare parts sales amounted to Rs. 7,236 million during
2007-08, registering a growth of 45%. This includes the sale
of knocked down kits to the Indian Defence establishment.
The Company fully utilized its production capacity of 84,000
vehicles across the five existing manufacturing units. The
development activities for the new facility at Uttarakhand
have been progressing as scheduled. This unit, designed for
an annual capacity of 50,000 vehicles, is expected to be
functional before June 2010.
The ‘Mission Summit’ initiative that was kick started last
year to promote innovation, was responsible for the concept
and development of the iBus, exhibited at the Auto Expo
in January 2008. The team has since been involved in
developing a strategy for the commercialization of the iBus.
Besides this, the ‘Mission Summit’ team is exploring many
other innovative concepts.
The Six Sigma initiative has been extended to all functional
areas and the second wave of training and associated projects
have successfully concluded. The third wave of training is
all set to roll out shortly. With this, the Six Sigma initiative is
expected to mature into a self sustaining process.
The Company’s initiative to nurture future leaders is showing
promising results. A number of initiatives put forward
by the cross functional team of Young Executives (YEs)
as part of their annual business plan are on their way to
implementation.
The Company has always endeavoured to offer its customers
the best value proposition in the market through product
innovations and refinement and is pursuing the same with
ever increasing vigour. Development programmes to bring out
the next generation of key aggregates are currently underway.
The Company is executing a transformational change
programme, with external assistance, to facilitate the
development and marketing of winning products to suit the
changing customer requirements. This would be facilitated by
enhancing competence in project management, lean product
development process, decision making and governance,
portfolio and pipeline management as well as technology
management.
JV with Nissan Motors
To become a full range player, the Company has entered into
a joint venture with Nissan Motors Co. Ltd., Japan to develop
and produce light commercial vehicles for both the domestic
and export markets. The two organizations have been working
closely over the past few months and the alliance is expected
to roll out its first product by 2010-11.
JV with Continental AG
Vehicle electronics is expected to play an increasingly
important role in the Indian automotive sector in the years to
come. The Company has entered into a joint venture with the
Europe based Continental Group (who acquired Siemens VDO
in September 2007) to develop and produce cutting edge
vehicle electronics products.
Albonair GmbH
The Company has made an investment in Albonair GmbH
for development of cost effective vehicle emission treatment/
control systems and products, which, over the longer term,
are expected to find application in the first hemisphere
markets as well. The venture has already commenced
operations and has been strengthened with the recruitment of
appropriate technical personnel.
Ashley Alteams India Private Ltd.
The Company entered into a joint venture with Alteams O.Y.,
Finland, for the manufacture and sale of High Pressure Die
Casting components. Ashley Alteams India Private Ltd., the
joint venture Company, is making steady progress in the
implementation of the project and will cater to telecom
and automotive industry. Commencement of commercial
production is expected by end 2008.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 48 6/25/2008 7:27:20 PM
48
Ashok Leyland Annual Report 08
Avia Ashok Leyland Motors s.r.o. (AALM)
The Commercial Vehicles business of Avia made steady
progress during the year 2007. AALM focused on initiatives
to consolidate its business, set up the processes, integrate
product development activities with the Company and widen
its market reach. The company achieved sales in excess of
700 units during the previous calendar year.
C. Risk Management
The Commercial Vehicles business has a specific set of
risk characteristics, which need to be carefully evaluated,
managed and mitigated. In order to effectively manage the
cyclical nature of demand, Management has adopted an
internal risk management protocol. Risk Management
covers the entire process of business, including, inter alia,
capital investment, technology development and customer
acquisition / retention.
Continuance of the reform process and emphasis on
infrastructure and agriculture augur well for the road transport
sector. However, given the cyclical nature of demand in the
Commercial Vehicles industry, capacity build up plans are
periodically reassessed, taking into account market conditions
and demand forecast.
The Company has plans to increase its annual capacity
to 184,000 vehicles (medium and heavy duty vehicles)
over next two / three years. Capacity addition through
de-bottlenecking engine / gear box manufacturing facilities
at Ennore unit is nearing completion. This would enable
the Company to overcome capacity constraints during the
coming years. In addition, the Company is moving ahead
with capacity addition of 50000 vehicles per year at the
Uttarakhand plant which needs to be completed before
March 2010 to avail the fiscal benefits. The Company is
pursuing plans to increase the share of non-cyclical business
including exports, non-auto engines and sale to Defence
sector to mitigate the impact of cyclicality.
Competition in the domestic Commercial Vehicles market
has increased significantly with many global OEMs setting up
manufacturing base. Consequent to the policy of progressive
opening up of the market, customs duty, as a trade barrier, is
likely to lose its influence. The Company is preparing to face
these challenges through focused R & D efforts in designing /
developing vehicles that offer appropriate transport solutions
and meet the changing preferences of customers.
Rising fuel prices in the international market, coupled with
competitive pressures to contain freight rates, could lead to
erosion in vehicle operators’ margins, thereby leading to lower
demand. However, increased use of heavy tonnage vehicles
for moving large freight loads has reduced the tonne / km
cost. This has helped improve the operational viability for the
vehicle operators.
There are continuing concerns on input cost increases
particularly steel and rubber, due to commodity price
movements. In a competitive market, the Company may
not be able to pass on the cost increases fully through
pricing action. Hence, margins may come under pressure.
The Company is taking steps to competitively procure
components through global sourcing, reduce cost through
Value Engineering and improve productivity through shop floor
initiatives.
The Company’s foreign exchange exposure has increased
manifold, through contracting External Commercial
Borrowings of US$ 315 mn. over the years. Exports are
likely to cross US$ 250 mn. in the next 3 to 4 years.
Strengthening of the Rupee, if it continues, can adversely
affect realization from exports. However, the Company has an
active, centralized treasury department, assisted by technical
experts to mitigate adverse effects of currency / interest rate
fluctuations. Considering the extent of capital expenditure
(over Rs. 30,000 mn.) in the next three years, the Company
may face uncertainty in fund availability at reasonable costs.
However, given the low gearing at present, the Company
believes it would be able to raise the required funds at
competitive rates. The Company manages liquidity risk
through tie-up of short term facilities from banks which could
be used in case of requirement.
D. Internal Control systems and their adequacy
Based on the nature of business and size of operations, the
Company’s internal control system has been designed to
provide for:
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 49 6/25/2008 7:27:20 PM
49
50
• Accurate recording of transactions with internal checks and
prompt reporting.
• Adherence to applicable Accounting Standards and Policies.
• Review of capital investments and long term business
plans.
• Periodic review meetings to guide optimum utilization of
resources.
• Compliance with applicable statutes, policies, listing
requirements and management policies and procedures.
• Effective use of resources and safeguarding of assets.
The internal control system provides for well documented
policies / guidelines, authorizations and approval procedures.
The Company, through its own Corporate Internal Audit
Department, carries out periodic audits at all locations
and all functions and brings out any deviation to internal
control procedures. The observations arising out of audit
are periodically reviewed and compliance ensured. The
summary of the Internal Audit observations is submitted
to Audit Committee of the Board of Directors. The status
of implementation of the recommendations is reviewed by
the Committee on a regular basis and concerns, if any, are
reported to the Board.
Information security and IPR protection initiatives
While the Company endeavours continuously to align
IT investments to business strategies, efforts have
simultaneously been made to safeguard the Company’s
invaluable information assets and intellectual property. As
a part of this initiative, the Company implemented, during
2005, BS7799 – 2:2002, the most widely accepted security
standard and got the coveted certification, the first among all
auto majors in India.
Continuing this journey further, the Company migrated
to ISO27001 during 2006, consequent to ISO adopting
BS7799, as part of the ISO standard for information security.
Subsequently, the scope of the certification was extended to
Advanced Engineering activities of the Company during 2007,
as a part of Company’s strategy to extend the scope to all
critical business units, where intellectual property and critical
information are either created, handled or stored.
During April 2008, STQC (MIT, Govt. of India) renewed
the ISO27001 certificate for a further period of three
years, subject to periodical surveillance audits, following
an assessment and detailed review of maintenance of
the implemented standard, best practices and further
improvements over the last three years.
E. Financial Review
During the year under review, growth in profits has been
commensurate with growth in revenues. The Company
achieved an overall growth in sale revenue by 7.8% over
the previous year. Drop in domestic vehicle sales by 1.4%
over previous year was adequately compensated by 21%
increase in export volumes. The Company improved its non-
auto Engine sales by 37%, supported by sale of “Leypower
Gensets”, a new line of revenue stream. Parts sales (including
supply of kits to Vehicle Factory, Jabalpur) registered 50%
growth. The share of non-cyclical revenues (covering revenues
from Buses / Chassis for buses, non-auto Engines, Defence,
Exports and Spare Parts) improved from 24% to 33% in
2007-08.
ASHOKLeyland_082-895-1_AR2K7-8_Ord_2 co_pg 26-94.indd 50 6/26/2008 5:32:58 PM
Ashok Leyland Annual Report 08
Summary of Profit and Loss Account
Rs millions
2007-08 2006-07 Inc / (Dec) %
Income
Sales (Net of Excise Duty)
Other Income
77,291
740
71,682
708
7.8
4.5
Total 78,031 72,390 7.8
Expenditure
Material Cost
Employee Expenses
Other Expenses
Depreciation
Financial Expenses
57,647
6,162
5,443
1,774
497
54,632
4,807
5,216
1,506
53
5.5
28.2
4.4
17.8
838.5
Total 71,523 66,214 8.0
Profit Before Extraordinary item 6,508 6,176 5.4
Extraordinary item – VRS Expenses Amortisation (127) (131) (2.6)
Profit Before Tax 6,381 6,045 5.5
Tax Provision – Current 1,014 1,351 (24.9)
– Deferred 604 230 162.7
– Fringe benefit tax 70 51 37.3
Profit After Tax 4,693 4,413 6.3
Basic Earnings Per Share (in Rs.) 3.53 3.38 4.4
Diluted Earnings Per Share (in Rs.) 3.53 3.36 5.1
Revenues:
The Company was able to earn revenue through the following streams of business activities:
i) Vehicles: Income from vehicles was Rs 68,819 mn. 4.1%
over the previous year level of Rs 66,092 mn.
ii) Engines: Income from Engines increased to Rs 1,921
mn., 59% growth over the previous year level of Rs 1,210
mn. During the year the Company offered factory built genset
engines, which accounted for 17% of total engine volume .
iii) Spare Parts and others: Income from Spare parts
including sale of kits to Vehicle Factory, Jabalpur increased to
Rs 6,551 mn., a jump of 50% over the previous year level of
Rs 4,380 mn.
Other income registered an increase by Rs. 32 mn. mainly
due to better realization on sale of investments during the
current year.
Costs:
Material Cost: Steel, the major input material, witnessed
a steep increase during the year (62% increase on point to
point basis compared to March 2007). The other major input,
rubber also witnessed an increase of 10% in commodity
prices. However, the Company mostly neutralized these
increases through continued efforts in value engineering
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 51 6/25/2008 7:27:20 PM
51
initiatives and better product mix. The Company also
managed to secure from global sources (including from
China where it has recently set up an office) components at
lower costs to offset the commodity price induced input cost
increases. The Company was also able to get the full year
benefit of VAT, introduced by Tamil Nadu Government in
January 2007. Average pricing action of about 4.5% effected
by the Company in a phased manner helped to protect the
margins.
Staff costs: The increase is mainly due to full year impact
of salary revision made in the previous year and incremental
manpower for ongoing activities at Uttarakhand and Product
Development initiatives.
Other expenses: These increased by 4.4% (excluding R &
D activities), mainly due to the activity levels and inflation.
Reduction in rates and taxes is due to full year impact of
abolition of Additional Sales tax in Tamil Nadu consequent to
introduction of VAT effective January 2007.
Depreciation for the year has increased to Rs 1,774 mn.
compared to Rs 1,506 mn. in the previous year due to
deployment of resources to augment capacity and incremental
provision for impairment of assets by Rs. 28 mn.
Financial expenses
Interest cost has gone up due to borrowings to meet the
capital expenditure and working capital requirements. The
Company is regulating its borrowing in line with capital
expenditure requirements. Centralised Treasury Department is
active in the money market to manage day-to-day investment
of surplus funds and raise short-term funds as required and
bring down cost by such borrowings.
Capital employed
Total capital employed by the Company increased by 21%
from Rs 27,075 mn. to Rs 32,680 mn., mainly due to
investments in facility creation.
Total Shareholders’ funds as at March 31, 2008 aggregated
Rs 21,267 mn. of which equity capital was Rs 1,330 mn.
comprising of 1,330 mn. shares of Re 1 each. Out of the
above, 6,468,000 shares were issued during the year by way
of conversion of Foreign Currency Convertible Notes.
BALANCE SHEET
Rs millions
2007-08 2006-07 Inc / (Dec) %
Sources of Funds
Shareholders’ Funds
Loan Funds
Deferred Tax Liability - Net
21,267
8,875
2,538
18,702
6,404
1,969
13.7
38.6
28.9
Total 32,680 27,075 20.7
Application of Funds
Fixed Assets
Investments
Net Current Assets
20,548
6,099
6,033
15,445
2,211
9,419
33.0
175.8
(35.9)
Total 32,680 27,075 20.7
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52
Ashok Leyland Annual Report 08
Dividend
The Directors have recommended 150% dividend for the year
2008, i.e. Rs 1.50 per share.
Capital expenditure and Investments
During the year, the Company incurred Rs 6,959 mn. towards
capital expenditure. This expenditure covers investments
related to capacity expansion in the existing plants and in
the new plant at Uttarakhand and R & D programmes. The
Company also started making investments in Ashley Alteams
India Private Limited (Joint Venture Company with Alteams
O.Y. Finland) and Automotive Infotronics Private Limited (Joint
Venture with Continental AG). These two companies will focus
on supplies to meet specific component requirements for
fitment in Commercial Vehicles.
In addition the Company made investments in a vehicle
manufacturing / assembly plant at Ras Al Khaimah, Design
Engineering services business viz., Defiance Testing and
Engineering Services Inc. USA and Albonair GmbH, Germany
which is engaged in the development of fuel emission
treatment / control systems.
Net Current Assets (excluding cash / bank balances) as on
March 31, 2008 stood at Rs 1,519 mn. compared to the
previous year level of Rs 5,069 mn. mainly due to reduction
in trade debtor levels. Inventories have gone up to Rs 12,239
mn. as on March 31, 2008 compared to Rs 10,703 mn. as
at March 31, 2007. The increase is mainly due to increased
activity levels and higher level of finished vehicles and
engines. Focussed effort on collections reduced the sundry
debtors level to Rs 3,758 mn. from Rs 5,229 mn.
Liquidity
As at March 31, 2008, net debt (net of cash & bank
balances) to equity ratio was 0.2. During the year the
Company had tied up External Commercial Borrowings (ECB)
for USD 270 mn. Against these facilities, the Company
drew USD 90 mn. to fund imported capital expenditure/
investments. The balance of USD 180 mn. would be drawn
during the ensuing year. FCCNs issued during April 2004 has
been converted except for USD 1 mn., representing 1% of the
total issue size of USD 100 mn. Assuming conversion of this
balance portion, the equity of the Company will increase to
Rs 1331.8 mn. The Company manages its liquidity through
rigorous weekly monitoring of cash flows and surplus funds
are invested, mainly in units of mutual funds and in bank
deposits.
The Company’s principal sources of liquidity are:
a) Existing cash and cash equivalents
b) Cash generated by operations
c) Unutilised limits with banks
d) Unutilised limits out of term funding limits tied up with
financial institutions and Banks.
Fitch has awarded ratings at “AA (IND) / stable” for the
Company’s long term borrowings. ICRA has assigned the rating
LAA (L double A) for long-term loans and also assigned special
rating of A1+ (A one plus) for short-term loans. CRISIL has
given the ratings for long-term borrowings at “AA / negative”. On
Commercial Paper programme (short term borrowing), CRISIL
maintained the earlier rating of P1+. The Company believes that
it has sufficient liquidity to meet its working capital requirements
and other anticipated cash outflows.
Results of operation
The Company generated profit from operations after tax of
Rs 6,956 mn. After meeting working capital requirements
and extraordinary item of payments for Voluntary Retirement
Scheme of Rs 48 mn., the Company earned net cash inflow
of Rs 10,657 mn. from its operations.
Cash flow from financing activities significantly improved
mainly due to payment of dividend for 2006-07 in March-07
itself. This enabled the Company utilise internal generation
for meeting capital expenditure (including capital advance)
requirements and minimise the borrowings during 2007-08.
Profit before tax and extra-ordinary items improved by 4.5% to
Rs 6,508 mn. During the year, the Company charged Rs 127
mn. towards amortisation of VRS expenses. After providing
for taxes at Rs 1,688 mn. (including deferred tax and fringe
benefit tax), profit after tax for the current year improved by
6.3 % to Rs.4,693 mn.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 53 6/25/2008 7:27:21 PM
53
F. The Years ahead
The Company has set itself the task of consolidating and
enhancing its position in the Indian commercial vehicle
market, both in terms of volumes as well as in customer
satisfaction, in the medium term. The Company is
executing various initiatives in terms of process and product
improvements to achieve this goal.
The Company aspires to widen its footprint in the global
commercial vehicle industry through organic and inorganic
growth and is examining opportunities towards this end.
Cash Flow Statement
Rs. millions
2007-08 2006-07
Profit from operations after tax 6,956 4,958
Dec. in Net Working Capital 3,749 372
Net Cash Flow from operating activities (before extraordinary item) 10,705 5,330
Payments under Voluntary Retirement Scheme (48) (330)
Net Cash flow from operating activities 10,657 5,000
Payment for Assets acquisition – net (6,095) (6,704)
Other cash flow from Investing activities – net (2,002) (519)
Cash flow from Financing activities 3,645 (2,908)
Net Cash Inflow / (Outflow) 6,205 (5,131)
Development programmes for the next generation products
and aggregates are currently underway. These include the
“Future Vehicle Development Programme”, the “New Engine
Platform” development programme among others. The
successful culmination of these programmes should give the
Company significant competitive advantages.
In order to compensate for the cyclic nature of the domestic
commercial vehicle industry, the Company has been focussing
on increasing its presence in allied businesses like
non-auto engine, Defence, Exports and Parts so as to achieve
a significant portion of its revenues from such non-cyclical
businesses.
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54
Ashok Leyland Annual Report 08
Responsibility in relation to financial statements
The financial statements have been prepared in conformity, in
all material respects, 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. The Directors believe that the financial
statements reflect true and fair view of the financial position
as on 31.3.2008 and of the results of operations for the year
ended 31.3.2008.
The financial statements have been audited by
M/s M S Krishnaswami & Rajan and M/s Deloitte Haskins &
Sells in accordance with generally accepted auditing standards,
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.
Going Concern
In the opinion of the Directors, the Company will be in a position
to carry on its existing commercial vehicles / engines business
and accordingly it is considered appropriate to prepare the
financial statements on the basis of going concern.
Maintenance of accounting records & Internal controls
The Company has taken proper and sufficient care for the
maintenance of adequate accounting records as required by
various Statutes.
Annexure E to Directors’ Report
Directors’ Responsibility statement as per Section 217(2AA) of the Companies Act, 1956
Directors have overall responsibility for the Company’s internal
control system, which is designed to provide a reasonable
assurance for safeguarding of assets, reliability of financial
records and for preventing and detecting fraud and other
irregularities.
The system of internal control is monitored by the internal audit
function, 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. Internal Audit Department interacts with all
levels of management and the Statutory Auditors, and reports
significant issues to the Audit Committee of the Board.
Audit Committee supervises the financial reporting process
through review of accounting and reporting practices,
financial and accounting controls and financial statements.
Audit Committee also periodically interacts with internal and
statutory auditors to ensure quality and veracity of Company’s
accounts.
Internal Auditors, Audit Committee and Statutory Auditors
have full and free access to all the information and records
as considered necessary to carry out their responsibilities. All
the issues raised by them have been suitably acted upon and
followed up.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 55 6/25/2008 7:27:21 PM
55
We, R Seshasayee, Managing Director and K Sridharan, Chief Financial Officer of Ashok Leyland Limited, certify that:
1. 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;
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. The financial statements have been prepared in conformity, in all material respects, with the existing generally
accepted accounting principles including Accounting Standards, applicable laws and regulations.
2. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the company’s code of conduct.
3. We accept overall responsibility for establishing and monitoring the company’s internal control system for financial reporting and
evaluating its effectiveness. Internal audit function monitors the internal control system for financial reporting, which encompasses
the examination and evaluation of the adequacy and effectiveness. Internal audit works with all levels of management and
statutory auditors, and reports significant issues to the Audit Committee of the Board. The auditors and Audit Committee are
appraised of any corrective action taken with regard to significant deficiencies and material weaknesses.
4. We indicate to the auditors and to the Audit Committee:
a) significant changes in internal control over financial reporting during the year;
b) significant changes in accounting policies during the year;
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.
However, during the year there were no such changes or instances.
R Seshasayee K Sridharan
Managing Director Chief Financial Officer
May 8, 2008
Chennai
Code of Conduct for the Senior ManagementThis is to confirm that for the financial year March 31, 2008 all members of the Senior Management have affirmed in writing their
adherence to the Code of Conduct adopted by the Company.
R Seshasayee
Managing Director
May 8, 2008
Chennai
Annexure – G to Directors’ Report
Certification by Managing Director and Chief Financial Officer to the Board
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 56 6/25/2008 7:27:21 PM
56
Ashok Leyland Annual Report 08
Auditors’ Report
To the Members of
ASHOK LEYLAND LIMITED
1. We have audited the attached Balance Sheet of ASHOK
LEYLAND LIMITED as at March 31, 2008, the Profit and
Loss Account and the Cash Flow Statement (financial
statements) for the year ended on that date, annexed
thereto, signed by us under reference to this report. These
financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing and
assurance standards generally accepted in India. Those
standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles
used and significant estimates made by management,
as well as evaluating the overall financial statement
presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. We report that:
3.1 we have obtained all the information and explanations,
which, to the best of our knowledge and belief, were
necessary for the purposes of our audit.
3.2 in our opinion, proper books of account, as required by
law, have been kept by the Company so far as appears
from our examination of those books.
3.3 the financial statements dealt with by this report are in
agreement with the books of account.
3.4 in our opinion, the aforesaid financial statements comply
in all material respects with the applicable Accounting
Standards referred to in Section 211(3C) of the Companies
Act, 1956 (the Act).
3.5 on the basis of written representations received from the
Directors as on March 31, 2008, and taken on record by
the Board of Directors, we report that none of the directors
is prima facie disqualified as on March 31, 2008 from
being appointed as a director in terms of Section 274 (1)
(g) of the Act.
3.6 in our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
financial statements read with the Statement on Significant
Accounting Policies and Notes to the Accounts, give the
information required by the Act, in the manner so required
and also give a true and fair view, in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of
affairs of the Company as at March 31, 2008;
(ii) in the case of the Profit and Loss Account, of the
profit for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash
flows for the year ended on that date.
4. As required by the Companies (Auditor’s Report) Order,
2003 issued by the Government of India in terms of
Section 227(4A) of the Companies Act, 1956, and on the
basis of such checks as we considered appropriate and
according to the information and explanations given to us,
we further report that:
4.1 (i) the Company is maintaining proper records showing
full particulars including quantitative details and
situation of fixed assets.
(ii) the fixed assets are being physically verified under
a phased programme of verification, which, in our
opinion, is reasonable having regard to the nature
and value of its assets, and no material discrepancies
have been noticed on such verification.
(iii) the Company has not disposed off substantial part
of its fixed assets during the year.
4.2 (i) inventories have been physically verified during the
year by the management at reasonable intervals.
(ii) the procedures of physical verification of the inventory
followed by the management are reasonable and
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 57 6/25/2008 7:27:21 PM
57
adequate in relation to the size of the Company and
the nature of its business.
(iii) the company is maintaining proper records of its
inventories and no material discrepancies were
noticed on physical verification.
4.3 the Company has neither granted nor taken any loans,
secured or unsecured, to / from companies, firms or other
parties covered in the register maintained under Section
301 of the Act.
4.4 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. Further, on the basis of our
examination of the books and records of the Company,
we have neither come across nor have been informed of
any continuing failure to correct major weaknesses in the
aforesaid internal control system.
4.5 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.
4.6 the company has complied with the provisions of section
58A and 58AA or any other relevant provisions of the Act
and the Companies (Acceptance of Deposit) Rules, 1975
with regard to deposits accepted from public.
4.7 the Company has an internal audit system commensurate
with its size and nature of its business.
4.8 we have broadly reviewed the books of account and records
maintained by the Company relating to the manufacture
of commercial vehicles, diesel engines, 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.
4.9 (i) the Company is regular in depositing undisputed
statutory dues including provident fund, investor
education and protection fund, employees’ state
insurance, income tax, sales tax, wealth tax,
service tax, customs duty, excise duty, cess and
other material statutory dues as applicable with the
appropriate authorities during the year.
(ii) there are no dues of income tax/wealth tax, service
tax, customs duty, which have not been deposited
on account of any dispute. Details of dues towards
sales tax, excise duty and cess that have not been
deposited on account of dispute are as stated
below:
Rs. Millions
Nature of
dues
Dues Forum where
the dispute is
pending
Amount stayed
not included in
dues
Sales Tax 19.28 Appellate Deputy/
Additional
Commissioner
197.40
0.88 Tribunal 25.77
Excise Duty
and cess.
2.10 Commissioner
of Central Excise
(Appeals)
–
4.10 the Company does not have any accumulated losses as at
March 31, 2008 and has not incurred any cash losses in
the financial year ended on that date or in the immediately
preceding financial year.
4.11 the Company has not defaulted in repayment of dues to
any financial institution, bank or debenture holders during
the year.
4.12 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, debentures
and other securities.
4.13 the provisions of any special statute applicable to a
chit fund, nidhi, mutual benefit fund / societies are not
applicable to the Company.
4.14 the Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly the
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 58 6/25/2008 7:27:21 PM
58
Ashok Leyland Annual Report 08
provisions of clause 4 (xiv) of the Companies’ (Auditor’s
report) Order 2003 are not applicable to the Company.
4.15 the terms and conditions of guarantees given during the
year by the Company, for loans taken by others from banks
or financial institutions, are not prima facie prejudicial to
the interest of the Company.
4.16 the term loans availed by the Company were prima facie,
applied for the purpose for which they were obtained. The
loan funds pending application was temporarily deployed
as deposits with banks.
4.17 on an overall examination of the financial statements
of the Company, funds raised on short-term basis have,
prima facie, not been used during the year for long-term
investment.
4.18 the Company has not made any preferential allotment of
shares during the year to any party.
4.19 the Company has created securities / charges in respect of
debentures issued and outstanding.
4.20 the Company has not raised any money by public issues
during the year.
4.21 considering the size and nature of the Company’s
operations, no fraud of material significance on or by the
Company has been noticed or reported during the year.
For M.S. Krishnaswami & Rajan For Deloitte Haskins & Sells
Chartered Accountants Chartered Accountants
M.K. Rajan R. Laxminarayan
Partner Partner
Membership No. 4059 Membership No. 33023
May 08, 2008
Chennai
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(Rs. Millions)Schedule 2008 2007
SOURCES OF FUNDSShareholders’ funds Capital 1.1 1,330.34 1,323.87 Reserves and surplus 1.2 20,159.48 17,621.81
21,489.82 18,945.68Loan funds Secured loans 1.3 1,902.40 3,602.16 Unsecured loans 1.4 6,972.61 2,801.82
8,875.01 6,403.98Deferred tax liability – net 2,538.20 1,969.29Total 32,903.03 27,318.95APPLICATION OF FuNDSFixed assets 1.5 Gross block 29,424.38 26,201.97
Less Depreciation 14,168.88 13,131.64
Net block 15,255.50 13,070.33
Capital work-in-progress 5,292.45 2,374.9120,547.95 15,445.24
Investments 1.6 6,099.00 2,210.94Current assets, loans and advances Inventories 1.7 12,239.14 10,703.21 Sundry debtors 1.8 3,758.35 5,228.75 Cash and bank balances 1.9 4,513.70 4,349.39 Loans and advances 1.10 8,241.37 6,695.79
28,752.56 26,977.14Less Current liabilities and provisions 1.11 Liabilities 19,267.09 16,516.25 Provisions 3,452.31 1,042.30
22,719.40 17,558.55Net current assets 6,033.16 9,418.59Miscellaneous expenditure(to the extent not written off or adjusted)
1.12 222.92 244.18
Total 32,903.03 27,318.95
Statement on significant accounting policies, Schedules 1.1 to 1.12 andNotes to the Accounts form part of this Balance Sheet.
For and on behalf of the Board
K. SRIDHARAN A.R. CHANDRASEKHARAN R. SESHASAYEE R. J. SHAHANEYChiefFinancialOfficer ExecutiveDirector& ManagingDirector Chairman Company Secretary
This is the Balance Sheet referred to in our report of even date.
For M.S. KRISHNASWAMI & RAJAN For DELOITTE HASKINS & SELLSChartered Accountants Chartered Accountants
M.K. RAJAN R. LAXMINARAYANPartner Partner
May 08, 2008Chennai
Balance Sheet as at March 31, 2008
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Ashok Leyland Annual Report 08
(Rs. Millions)
Schedule 2008 2007INCOME Sales 2.1 89,336.90 83,047.17
Less Excise duty 12,045.67 11,365.41
77,291.23 71,681.76
Other income 2.2 739.99 708.03
78,031.22 72,389.79 ExPENDITuRE Manufacturing and other expenses 2.3 69,251.34 64,654.91
Depreciation, amortisation and impairment 2.4 1,773.61 1,505.74
Financial expenses 2.5 497.40 53.32
71,522.35 66,213.97
Profit before extraordinary items 6,508.87 6,175.82 Extraordinary items Voluntary retirement scheme compensation amortised 127.37 130.76
Profit before tax 6,381.50 6,045.06 Provision for taxation – Current tax 1,014.00 1,350.50
– Deferred tax 604.40 230.20
– Fringe benefit tax 70.00 51.50
Profit after tax 4,693.10 4,412.86 Excess provision written back – Dividend – 25.98
– Corporate dividend tax thereon – 3.64
Balance profit from last year 3,616.86 2,303.70
Transfer from / (to) – Debenture redemption reserve 50.00 135.00
– General reserve (1,000.00) (1,000.00)
7,359.96 5,881.18 Dividend – Interim – 1,985.81
– Proposed final 1,997.71 –
Corporate dividend tax thereon 339.51 278.51
Balance profit carried to Balance Sheet 5,022.74 3,616.86 Earnings per share (Face value Re.1) – Basic (in Rs.) 3.53 3.38
– Diluted (in Rs.) 3.53 3.36
Profit and Loss account for the year ended March 31, 2008
Statement on significant accounting policies, Schedules 2.1 to 2.5 andNotes to the Accounts form part of this Profit and Loss Account.
For and on behalf of the Board
K. SRIDHARAN A.R. CHANDRASEKHARAN R. SESHASAYEE R. J. SHAHANEYChiefFinancialOfficer ExecutiveDirector& ManagingDirector Chairman Company Secretary
This is the Profit and Loss Account referred to in our report of even date.
For M.S. KRISHNASWAMI & RAJAN For DELOITTE HASKINS & SELLSChartered Accountants Chartered Accountants
M.K. RAJAN R. LAXMINARAYANPartner Partner
May 08, 2008Chennai
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(Rs. Millions)
2008 2007
Cash flow from operating activities
Profit before tax 6,381.50 6,045.06
Adjustments for:
Depreciation, amortisation and impairment 1,773.61 1,505.74
Other amortisations 143.49 164.76
Foreign exchange (gains)/losses (63.60) (65.30)
Interest expense net of interest capitalisation 615.01 196.46
Interest income (214.67) (160.94)
Income from investments (22.85) (98.85)
(Profit)/Loss on disposal of fixed assets/long term investments (375.86) (323.15)
Diminution in value of investments written back – net – (168.13)
Transfer from General Reserve – Employee benefits – (781.54)
Operating profit before working capital changes 8,236.63 6,314.11
Adjustments for changes in :
Inventories (1,535.93) (1,677.60)
Debtors 1,426.87 (1,005.76)
Advances 261.52 (1,047.41)
Current liabilites and provisions 3,596.82 4,102.54
Cash generated from operations 11,985.91 6,685.88
Income tax including Fringe benefit tax paid (1,280.65) (1,356.00)
Net cash flow from operating activities before extraordinary expenditure 10,705.26 5,329.88
Compensation under Voluntary retirement scheme (48.41) (330.37)
Net cash flow from operating activities after extraordinary expenditure 10,656.85 4,999.51
Cash flow from investing activities
Payments for assets acquisition (6,209.04) (6,812.87)
Proceeds on sale of fixed assets 113.65 108.49
Purchase of Investments (373.82) (50.64)
Sale/redemption of investments 474.95 817.93
Income from investments – Interest 106.61 59.43
– Dividend 22.85 129.39
Changes in advances (2,231.98) (1,473.70)
Net cash flow used in investing activities (8,096.78) (7,221.97)
Cash Flow Statement for the year ended March 31, 2008
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Ashok Leyland Annual Report 08
Cash Flow Statement for the year ended March 31, 2008 (Contd.)
For and on behalf of the Board
K. SRIDHARAN A.R. CHANDRASEKHARAN R. SESHASAYEE R. J. SHAHANEYChiefFinancialOfficer ExecutiveDirector& ManagingDirector Chairman Company Secretary
This is the Cash Flow Statement referred to in our report of even date.
For M.S. KRISHNASWAMI & RAJAN For DELOITTE HASKINS & SELLSChartered Accountants Chartered Accountants
M.K. RAJAN R. LAXMINARAYANPartner Partner
May 08, 2008Chennai
(Rs. Millions)
2008 2007
Cash flow from financing activities
Long term borrowings – Raised 3,672.10 2,162.35
– Repaid (404.71) (829.95)
Changes in short term borrowings 993.32 –
Debenture/Loan raising expenses paid (68.94) (2.47)
Interest paid – net (546.59) (181.67)
Dividend paid and tax thereon – (1,792.34)
Interim dividend and tax thereon – (2,264.32)
Net cash flow from financing activities 3,645.18 (2,908.40)
Net cash inflow/(outflow) 6,205.25 (5,130.86)
Opening cash and cash equivalents 1,952.02 7,082.88
Closing cash and cash equivalents 8,157.27 1,952.02
Net increase/(decrease) in cash and cash equivalents 6,205.25 (5,130.86)
Notes to the cash flow statement
1 Components of cash and cash equivalents:
Cash and bank balances, cash credit excluding those relating to unclaimed dividend 4,491.75 1,953.31
Investments in money market instruments 3,650.73 –
Unrealised foreign exchange gains – net 14.79 (1.29)
8,157.27 1,952.02
2 The conversion of Foreign Currency Convertible Notes into equity shares has not been considered in the above statement. Refer Note 8 to the Accounts.
3 Cash flows from Investing activities includes acquisition of 100% shares in Albonair GmbH (cost Rs. 1.59 million) and Defiance Testing & Engineering Services (cost Rs. 141.05 million) and disposal of 60% (Rs. 0.95 million) and 51% (Rs. 71.94 million) shares respectively therein.
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1. Accounting convention
1.1 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.
1.2 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, disclosure of contingent liabilities and reported amounts of revenues and expenses for the year. Estimates are based on historical experience, where applicable, and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known/ materialise.
2. Fixed assets and depreciation/amortisation
2.1 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 100,000 and below. Other fixed assets, including intangible assets and assets given on lease, where the cost exceeds Rs. 10,000 and the estimated useful life is two years or more, is capitalised. Cost of initial spares and tools is capitalised along with the respective assets. Cost of fixed assets is net of credits under Cenvat / Vat Scheme. Expenditure directly related and incidental to construction are capitalised upto the date of attainment of commercial production. Interest and other related costs, including amortised cost of borrowings attributable only to major projects are capitalised as part of the cost of the respective assets.
2.2 Assets are depreciated / amortised, as below, on straight line basis:
(a) Leasehold land, over 40 years or the period of the lease, whichever is less, from its commencement;
(b) Leasehold land and buildings subject to revaluation, is calculated on the respective revalued amounts, 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;
(c) Buildings, plant and machinery (except assets subject matter of impairment) and other assets, including intangible assets and assets given on lease, over their estimated useful lives or lives derived from the rates specified in Schedule XIV to the Companies Act, 1956, whichever is lower;
(d) Assets subject to impairment, on the asset’s revised carrying amount, over its remaining useful life.
2.3 Depreciation/amortisation is charged for the full year on the additions made during the first half of the year and for six months on the additions made during the second half of the year. No depreciation is provided for in respect of assets disposed off during the year.
3. Investments
Long term investments are stated at cost less provision for diminution other than temporary, if any. Current investments are valued at lower of cost and fair value.
4. Inventories
4.1 Inventories are valued at lower of cost and net realisable value; cost being ascertained on the following basis:
– Stores, spares, consumable tools, raw materials and components: on monthly moving weighted average basis. In respect of works-made components, cost includes applicable production overheads.
– Work-in-progress, finished / trading goods: under absorption costing method.
4.2 Cost includes taxes and duties and is net of credits under Cenvat / Vat Scheme.
4.3 Cost of patterns and dies is amortised equally over five years.
4.4 Surplus / obsolete / slow moving inventories are adequately provided for.
5. Foreign currency transactions
Foreign currency transactions (including booking / cancellation of forward contracts) are recorded at the rates prevailing on the date of the transaction. Monetary assets and liabilities (including forward contracts) in foreign currency are translated at year
Statement on significant accounting policies
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Ashok Leyland Annual Report 08
Statement on significant accounting policies
end rates. Exchange differences arising on settlement of transactions and translation of monetary items and financial derivatives (including forward contracts) are recognised as income or expense.
5.2 The premium or discount arising on forward contracts is amortised over the life of the contract.
5.3 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.
5.4 Income/expenditure of overseas branches is recognised at the average rate prevailing during the month in which transaction occurred.
6. Amortisation of deferred expenditure
Expenditure incurred on issue of debentures / raising loans is amortised over the period of such borrowings. Premium paid on prepayment of any borrowing is amortised over the unexpired period thereof or sixty months, whichever is less.
7. 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, but net of incentive on sales including commission, rebates and discounts. Revenue arising due to price escalation claim is recognised in the period when such claim is made in accordance with terms of sale.
8. Government grants
Grants in the form of capital / investment subsidy are treated as Capital Reserve. Export incentives and incentives in the nature of subsidies given by the Government are reckoned in revenue in the year of eligibility.
9. Research and development costs
Expenditure on the design and production of prototypes is charged to revenue as incurred. Product development costs, including knowhow developed / acquired, incurred on new vehicle / engine platforms, variants on existing platforms and aggregates are recognised as Intangible assets and amortised.
10. Employee benefits
10.1 Short term employee benefit obligations are estimated and provided for.
10.2 Post employment benefits and other long term employee benefits
Defined contribution plans:
Company’s contribution to provident fund, superannuation fund, employee state insurance and other funds are determined under the relevant schemes and / or statute and charged to revenue.
Defined benefit plans and compensated absences:
Company’s liability towards gratuity, other retirement benefits and compensated absences are actuarially determined at each balance sheet date using the projected unit credit method. Actuarial gains and losses are recognised in revenue.
10.3 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, 2010.
11. 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.
12. Deferred tax
Deferred tax is recognised on timing differences, 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.
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.
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(Rs. Millions)
2008 2007
Schedule – 1.1 CAPITAL
Authorised
1,500,000,000 (2007 : 1,500,000,000) Equity shares of Re.1 (2007 :Re.1) each 1,500.00 1,500.00
Issued
a) 524,598,695 (2007: 524,598,695) Equity shares of Re 1 (2007: Re.1) each 524.60 524.60
b) 341,742,940 (2007: 341,742,940) Equity shares of Re.1 (2007: Re.1) each issued by way of conversion of debentures 341.74 341.74
c) 323,157,240 (2007: 323,157,240) Equity shares of Re.1 (2007: Re.1) each issued through Global Depository Receipts 323.16 323.16
d) 141,044,117 (2007: 134,576,117) Equity shares of Re.1(2007: Re.1) each issued by way of conversion of Foreign Currency Convertible Notes (FCCN) 141.04 134.57
1,330.54 1,324.07
Subscribed
a) 524,394,020 (2007: 524,394,020) Equity shares of Re 1 (2007: Re.1) each 524.40 524.40
b) 341,742,940 (2007: 341,742,940) Equity shares of Re.1 (2007: Re.1) each issued by way of conversion of debentures
341.74 341.74
c) 323,157,240 (2007: 323,157,240) Equity shares of Re.1 (2007: Re.1) each issued through Global Depository Receipts
323.16 323.16
d) 141,044,117 (2007: 134,576,117) Equity shares of Re.1(2007: Re.1) each issued by way of conversion of Foreign Currency Convertible Notes (FCCN)
141.04 134.57
1,330.34 1,323.87
Add Forfeited shares (Rs.3,800) (2007: Rs.3,800)
1,330.34 1,323.87
Schedules annexed to and forming part of the Balance Sheet as at March 31, 2008
Of the above,
1. 14,788,880 (2007: 14,788,880) Equity shares were allotted under an agreement without payment being received in cash.
2. 62,308,110 (2007: 62,308,110) Equity shares were allotted as fully paid up by way of bonus shares by capitalisation out of
General Reserve and from Securities Premium Account.
3. Hinduja Automotive Limited ( formerly LRLIH Limited ), the holding company, holds 513,618,712 (2007: 513,618,712) Equity
Shares of Re.1 (2007: Re.1) each and 5,486,669 (2007: 5,486,669) Global Depository Receipts equivalent to 164,600,070
(2007: 164,600,070) Equity shares of Re. 1 (2007: Re.1) each.
4. Refer Note 8 to the Accounts for option on unissued shares.
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Schedules annexed to and forming part of the Balance Sheet as at March 31, 2008
(Rs. Millions)2008 2007
Schedule – 1.2 RESERVES AND SURPLUSCapital reserveAs per last Balance Sheet 8.95 8.95 Revaluation reserveAs per last Balance Sheet 229.55 239.45 Less Reduction on reconstruction of building – 4.12 Less Transfer to Profit and Loss Account(Refer Note 3.7 (b) to the Accounts) 5.78 223.77 5.78 229.55 Securities premium As per last Balance Sheet 8,715.80 5,647.29 Add Premium on issue of shares upon conversion of FCCN (Refer Note 8 to the Accounts) 187.57 8,903.37 3,068.51 8,715.80Debenture redemption reserveAs per last Balance Sheet 212.50 347.50 Less Transfer to Profit and Loss Account 50.00 162.50 135.00 212.50General reserveAs per last Balance Sheet 4,838.15 4,356.05 Add Transfer from Profit and Loss Account 1,000.00 1,000.00 Less Adjustment towards provision for liability for employee benefits – net of tax(Refer Note 12(a) to the Accounts) – 5,838.15 517.90 4,838.15 Surplus-balance in Profit and Loss Account 5,022.74 3,616.86
20,159.48 17,621.81
2008 2007Schedule – 1.3 SECURED LOANSDebentures 650.00 850.00 Loans from banks – Term loans 1,252.40 1,319.40 – Cash credit – 1,432.76
1,902.40 3,602.16
1 a) Debentures and term loans from banks aggregating Rs.1,902.40 million (2007: Rs. 2,169.40 million) are secured by a first charge created on certain immovable properties and movable assets of the Company
b) Cash credit facility is secured by a first charge on certain movable assets and goods-in-transit and book debts (excluding deferred receivables ) and also by a charge on the immovable properties subordinate to the existing charge created in favour of the lenders till 12th October, 2007.
2. a) The Company has powers to reissue debentures aggregating Rs. Nil (2007: Rs.200.00 million)
b) Debentures are to be redeemed at par in single/equal instalments, as stated below:
Debenture Series 2008 2007 Dates of RedemptionRs. Millions Rs. Millions
AL 4 133.33 266.67 10 January, 2008 and 2009AL 6 16.67 33.33 15 February, 2008 and 2009AL 9(A) – 50.00 15 October, 2007AL 11 500.00 500.00 17 September, 2008, 2009 and 2010
650.00 850.00 3. Loans include Rs. 517.27 million (2007: Rs. 1,632.76 million) due within 12 months.
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Schedules annexed to and forming part of the Balance Sheet as at March 31, 2008
(Rs. Millions)
2008 2007
Schedule – 1.4 UNSECURED LOANS
Loans and advances – From banks 5,607.12 1,086.75
– Deferred sales tax 1,325.37 1,480.33
Foreign Currency Convertible Notes (refer Note 8 to the Accounts) 40.12 234.74
6,972.61 2,801.82
Of the above, amount due within 12 months
Loans and advances – From banks 993.32 –
– Deferred sales tax 301.18 155.96
Schedule – 1.5 FIxED ASSETS
DescriptionGross Block (Cost/Valuation) Depreciation / Impairment Net Block
01.04.2007 Additions Deductions 31.03.2008 Upto31.03.2008
Upto31.03.2007
31.03.2008 31.03.2007
Land – Freehold 318.59 11.91 0.46 330.04 – – 330.04 318.59
– Leasehold 141.23 1,056.38 – 1,197.61 56.24 52.64 1,141.37 88.59
Buildings 3,123.58 382.91 31.21 3,475.28 1,081.28 980.87 2,394.00 2,142.71
Plant and machinery 18,546.00 1,962.27 718.37 19,789.90 10,991.30 10,440.68 8,798.60 8,105.32
Furniture,fittings and equipment 1,211.18 214.90 11.26 1,414.82 934.73 810.27 480.09 400.91
Vehicles and aircraft 1,394.10 18.88 54.02 1,358.96 325.30 276.77 1,033.66 1,117.33
Assets given on lease
Leasehold land 4.84 7.80 – 12.64 3.00 1.03 9.64 3.81
Buildings – 80.48 – 80.48 1.16 – 79.32 –
Plant and machinery – windmills 562.21 0.98 – 563.19 107.25 60.74 455.94 501.47
Furniture, fittings and equipment – 7.87 – 7.87 0.77 – 7.10 –
Intangible assets
Computer software
– Developed 248.14 – 3.46 244.68 226.40 204.19 18.28 43.95
– Acquired 250.42 154.77 – 405.19 213.49 165.01 191.70 85.41
Technical knowhow-acquired 401.68 142.04 – 543.72 227.96 139.44 315.76 262.24
26,201.97 4,041.19 818.78 29,424.38 14,168.88 13,131.64 15,255.50 13,070.33
Previous year 21,384.99 5,174.45 357.47 26,201.97 13,131.64 –
Capital work-in-progress 5,292.45 2,374.91
20,547.95 15,445.24
1. Certain Freehold and Leasehold land and buildings were revalued as at December 31, 1984.
2. Execution of lease deed and registration is in progress for ‘leasehold land’ at Uttrakhand. Amounts pertaining to a portion of leasehold land at Hosur, sublet during the year, have been reclassified.
3. A portion of buildings in Bhandara {estimated gross value Rs. 7.20 million (2007: Rs.7.20 million)} is on a land, title for which is yet to be transferred to the Company.
4. Cost / Valuation of Buildings as at March 31, 2008 includes:
a) Rs.0.34 million (2007: Rs.0.34 million) being cost of shares in Housing Co–operative Society representing ownership rights in residential flats and furniture and fittings there at.
b) Rs.13.24 million (2007: Rs.13.24 million) representing cost of residential flats including undivided interest in land.
5. Depreciation / amortisation / impairment for the year is disclosed in Schedules 2.3(C) and 2.4 to the Profit and Loss Account.
6. Cost of additions and capital work-in-progress includes borrowing cost Rs. 73.18 million (2007: Rs. 29.83 million) and other expenses in the course of construction Rs. 2.25 million (2007: Rs. Nil).
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Schedules annexed to and forming part of the Balance Sheet as at March 31, 2008
2008 2007Schedule 1.6 INVESTMENTS Nos. Rs. Millions Nos. Rs. MillionsI. Current investments – other than trade 1) Mutual Fund Units of Rs.10 each Birla cash plus institutional premium dividend 59,894,733 600.12 – – Birla sunlife cash manager IP dividend 29,996,127 300.05 – – HDFC cash management fund savings plan dividend 28,210,335 300.06 – – ICICI prudential liquid super IP dividend 80,013,259 800.17 – – Kotak liquid institutional premium dividend 16,359,194 200.04 – – LIC MF liquid fund dividend 18,218,261 200.04 – – Reliance liquidity fund dividend 34,996,240 350.07 – – 2) Mutual Fund Units of Rs. 1,000 each UTI Liquid Fund Cash Plan IP dividend 883,005 900.18 – – 3) Non convertible redeemable bonds of Rs. 1 million each IndusInd Bank Limited 1,140 1,140.00 1,140 1,140.00 ICICI Bank Limited 20 20.05 20 20.05 II. Long term investments A) Trade 1) Equity Shares of Rs. 10 each Arkay Energy (Rameswarm) Limited 600,000 6.00 600,000 6.00 Ashley Alteams India Private Limited 5,000 0.05 – – Automotive Coaches and Components Limited 1,410,664 11.23 1,410,664 11.23 Automotive Infotronics Private Limited 25,000 0.25 – – Hinduja Foundries Limited (formerly Ennore Foundries Limited) 3,424,449 143.06 3,424,449 143.06 Irizar – TVS Limited 1,400,000 14.00 1,400,000 14.00 2) Equity Shares of Rs.100 each Ashley Transport Services Limited 420,000 42.00 300,000 30.00 Gulf Ashley Motor Limited 354,000 35.40 354,000 35.40 3) Equity shares of Srilankan Rs. 10 each Lanka Ashok Leyland Limited 1,008,332 5.75 1,008,332 5.75 4) 6 % Cumulative Non–Convertible Redeemable Preference shares of Rs. 100 each Hinduja Foundries Limited 2,500,000 250.00 2,500,000 250.00 5) Ownership interest in share capital in Czech Koruna Avia Ashok Leyland Motors s.r.o. – ownership interest 40% 0.15 40% 0.15 6) Equity shares of UAE Dhirams of 1,000 each Ashok Leyland (UAE) LLC 2,450 30.26 2,450 30.26 7) Equity Shares of US Dollars 0.01 each Defiance Testing and Engineering Services, Inc. USA 49 69.11 – – 8) Equity shares of Euro 1 each Albonair GmbH 10,000 0.64 – – B) Other than trade 1) Equity shares of Rs. 10 each Ashley Airways Limited 1,470,000 14.70 – – Ashley Holdings Limited 1,250,000 12.50 750,000 7.50 Ashley Investments Limited 1,250,000 12.50 750,000 7.50 Ashok Leyland Project Services Limited 3,442,400 34.42 3,442,400 34.42 Chennai Willingdon Corporate Foundation (Cost Rs. 900) 100 100 Hinduja TMT Global Solutions Limited 2,029 0.40 – – Hinduja Ventures Limited (formerly Hinduja TMT Limited) 2,029 0.41 4,058 0.81 ICICI Bank Limited 24,231 1.05 24,231 1.05 IndusInd Bank Limited 28,581,764 577.25 29,031,764 511.67 2) Equity shares of Rs. 100 each, partly paid–up Adyar Property Holding Co. Limited (Rs. 65 paid up) 400 0.03 400 0.03 3) 2% Non–Cumulative Non–Convertible Redeemable Preference shares of Rs. 10 each Ashley Holdings Limited 3,250,000 32.50 – – Ashley Investments Limited 3,250,000 32.50 – –
6,136.94 2,248.88 Less Provision for diminution in value 37.94 37.94
6,099.00 2,210.94
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4. Purchase and sales / redemption of investments during the year are as under :
Acquisition Disposals Description Nos. Cost
Rs. Millions Nos. Cost
Rs. Millions a) Units in schemes of mutual funds Birla Mutual Fund 1,784,568,335 17,876.18 1,694,677,475 16,976.01 Chola Mutual Fund 212,595,702 2,130.55 212,595,702 2,130.55 Deutsche Mutual Fund 171,215,044 1,715.49 171,215,044 1,715.49 DSP Merrill Lynch Mutual Fund 149,993 150.02 149,993 150.02 Franklin Templeton Mutual Fund 349,981 350.07 349,981 350.07 HDFC Mutual Fund 487,064,626 5,248.81 458,854,290 4,948.75 HSBC Mutual Fund 296,203,847 2,963.94 296,203,847 2,963.94 ING VYSYA Mutual Fund 118,077,419 1,181.34 118,077,419 1,181.34 JM Financial Mutual Fund 34,952,070 350.10 34,952,070 350.10 Kotak Mahindra Mutual Fund 337,023,005 4,121.15 320,663,811 3,921.11 LIC Mutual Fund 327,047,883 3,591.02 308,829,622 3,390.98 Principal Mutual Fund 95,013,923 950.21 95,013,923 950.21 Prudential ICICI Mutual Fund 974,446,678 9,744.84 894,433,419 8,944.67 Reliance Mutual Fund 265,769,457 3,465.81 230,773,216 3,115.74 SBI Mutual Fund 157,039,537 1,575.50 157,039,537 1,575.50 Standard Chartered Mutual Fund 300,062 300.12 300,062 300.12 Sundaram Mutual Fund 57,270,074 578.16 57,270,074 578.16 Tata Mutual Fund 26,369,961 3,433.80 26,369,961 3,433.80 UTI Mutual Fund 24,858,246 13,236.81 23,975,241 12,336.63 b) Equity Shares Associate companies Albonair GmbH 25,000 1.59 15,000 0.95 Ashley Airways Limited 1,470,000 14.70 – – Ashley Alteams India Private Limited 5,000 0.05 – – Ashley Holdings Limited 500,000 5.00 – – Ashley Investments Limited 500,000 5.00 – – Ashley Transport Services Limited 120,000 12.00 – – Automotive Infotronics Private Limited 25,000 0.25 – – Defiance Testing and Engineering Services, Inc. USA 100 141.05 51 71.94 Others IndusInd Bank Limited 2,700,000 129.17 3,150,000 63.60 c) Preference Shares in Associate companies Ashley Holdings Limited 3,250,000 32.50 – – Ashley Investments Limited 3,250,000 32.50 – – 5. During the year, the Company has been alloted 2,029 shares in HTMT Global Solutions Limited pursuant to demerger and transfer of IT / ITES
undertaking belonging to Hinduja TMT Limited. After demerger, there has been a reduction of face value of equity shares in Hinduja TMT Limited and simultaneous consolidation of face value with the result the Company holds 2,029 equity shares of Rs. 10 each. Hinduja TMT Limited has changed its name to Hinduja Ventures Limited.
(Rs. Millions)2008 2007
Schedule 1.6 INVESTMENTS (CONTINuED)1. Investments are fully paid–up unless otherwise stated.2. Quoted Investments – Cost 1,882.23 1,816.65 – Market value 3,918.38 2,813.85 Unquoted Investments – Units in Mutual funds – cost/fair value 3,650.73 – – others – cost 603.98 432.23 3. 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) Automotive Coaches and Components Limited b) Hinduja Foundries Limited
Schedules annexed to and forming part of the Balance Sheet as at March 31, 2008
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Schedules annexed to and forming part of the Balance Sheet as at March 31, 2008
(Rs.Millions)2008 2007
Schedule 1.7 INVENTORIESStores and spares 418.33 279.17 Consumable tools 196.00 149.88 Raw materials and components (including patterns and dies) 4,229.29 3,853.39 Work-in-progress 1,140.47 1,095.07 Finished/Trading goods 6,255.05 5,325.70
12,239.14 10,703.21
Schedule 1.8 SuNDRY DEBTORSTrade 3,742.11 5,194.43 Others 22.54 85.22
3,764.65 5,279.65 Less Provision 6.30 50.90
3,758.35 5,228.75 Of the above,1 Unsecured – Considered good 3,758.35 5,228.75 – Considered doubtful 6.30 50.90 2 Age analysis of debts – Outstanding for more than six months
(includes deferred receivables Rs. Nil (2007:Rs.1.16 million))
585.75 696.04
– Other debts 3,178.90 4,583.61 3 Debtors include Bills receivable 3,635.22 1,414.49
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(Rs. Millions)
2008 2007
Schedule 1.9 CASH AND BANK BALANCES
Cash and stamps on hand 2.82 4.05
Cheques on hand and remittances in transit 0.98 1.37
Balances with scheduled banks
– Current account 381.11 867.18
– Deposit account 4,031.96 3,450.74
Balances with other banks
– Current account 60.57 12.86
– Deposit account 36.26 13.19
4,513.70 4,349.39
Balances with other banks
– Current account
ABSA Bank – South Africa – Denominated in South African Rand 49.17 4.16
Bank of America – Hong Kong – Denominated in US$ 0.01 –
Citi Bank – New York – Denominated in US$ 0.02 0.03
HSBC – Egypt – Denominated in US$ 0.03 0.06
Indian Oceanic International Bank – Mauritius – Denominated in Mauritius Rupees 5.20 4.65
National Bank of Sharjah – Sharjah – Denominated in Dirham 0.79 0.23
National Bank of Sharjah – Sharjah – Denominated in US$ 5.10 2.60
Standard Chartered Bank – Ghana – Denominated in Ghana Cedis 0.06 0.39
Standard Chartered Bank – Ghana – Denominated in US$ 0.04 –
State Bank of Bangladesh – Bangladesh – Denominated in Taka 0.15 0.74
– Deposit account
Bank of America – Hong Kong – Denominated in US $ 24.19 –
Standard Chartered Bank – Ghana – Denominated in Ghana Cedis 12.07 13.19
Maximum balance at any time during the year
– Current account
ABSA Bank – South Africa – Denominated in South African Rand 54.99 7.60
Bank of America – Hong Kong – Denominated in US$ 483.90 –
Citi Bank – New York – Denominated in US$ 0.03 0.04
HSBC – Egypt – Denominated in US$ 0.42 0.48
Indian Oceanic International Bank – Mauritius – Denominated in Mauritius rupees 8.24 4.65
National Bank of Sharjah – Sharjah – Denominated in Dirham 14.10 7.85
National Bank of Sharjah – Sharjah – Denominated in US$ 35.57 6.97
Standard Chartered Bank – Ghana – Denominated in Ghana Cedis 7.09 0.40
Standard Chartered Bank – Ghana – Denominated in US$ 0.50 0.11
State Bank of Bangladesh – Bangladesh – Denominated in Taka 0.74 2.68
– Deposit account
Bank of America – Hong Kong – Denominated in US$ 121.33 –
Standard Chartered Bank – Ghana – Denominated in Ghana Cedis 13.39 13.38
Schedules annexed to and forming part of the Balance Sheet as at March 31, 2008
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Schedules annexed to and forming part of the Balance Sheet as at March 31, 2008
(Rs. Millions)2008 2007
Schedule 1.10 LOANS AND ADVANCES7,443.54 5,718.07 Advances recoverable in cash or in kind or for value to be received
Balances with customs, port trust, central excise, etc. 486.49 617.37 Other receivables 454.15 507.61
8,384.18 6,843.05 Less Provision 142.81 147.26
8,241.37 6,695.79 Of the above,1. Unsecured – Considered good 8,241.37 6,695.79 – Considered doubtful 142.81 147.26 2. Due from a Director/Officers – At the end of the year 1.20 0.94 – Maximum amount due at any time during the year 1.54 1.30 3. Advances for capital items and investments 1,318.38 1,702.13 4. Interest accrued on investments 53.40 53.48
Schedule 1.11 CuRRENT LIABILITIES AND PROVISIONSLiabilitiesAcceptances 4,425.50 4,199.76 Creditors for materials and expenses – Micro and Small enterprises 663.55 347.79 – Others 12,262.03 9,789.33 Other liabilities 1,834.77 2,127.30 Interest accrued but not due on loans 81.24 52.07
19,267.09 16,516.25 Provisions Current income tax-net – 124.56Fringe benefit tax-net 1.30 1.30 Proposed dividend 1,997.71 – Corporate dividend tax on proposed dividend 339.51 – Product warranties 502.65 357.29Employee benefits 611.14 559.15
3,452.31 1,042.30 22,719.40 17,558.55
Of the above,1. Provision made during the year – Product warranties 145.36 83.38 – Employee benefits 51.99 324.502. Other liabilities include – Unclaimed matured fixed deposit and interest accrued thereon 0.08 0.47 – Unclaimed dividends 21.95 963.32 – Unclaimed debenture interest – 1.533. Creditors for materials and expenses include – Gratuity 98.42 212.034. Provision for employee benefits relates to – Compensated absences 539.61 482.26 – Other defined benefit plans 71.53 76.89
Schedule 1.12 MISCELLANEOuS ExPENDITuRE (to the extent not written off or adjusted)Debenture issue/loan raising expenses 69.17 2.57Premium on prepayment of borrowings 2.95 11.85Compensation under voluntary retirement scheme 150.80 229.76
222.92 244.18
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Schedules annexed to and forming part of the Profit and Loss Account for the year ended March 31, 2008
Unit ofMeasurement
2008 2007
Volume Rs. Millions Volume Rs. Millions
Schedule 2.1 SALES
Commercial vehicles Nos 83,307 81,016.63 83,094 77,760.03
Engines and gensets Nos 11,757 2,354.17 8,202 1,525.77
Spare parts and others 7,912.43 5,468.41
91,283.23 84,754.21
Less Commission, rebate and discounts 1,946.33 1,707.04
89,336.90 83,047.17
(Rs.Millions)
2008 2007
Schedule 2.2 OTHER INCOME
Income from current investments
Dividend 19.84 65.53
Interest 104.93 110.34
124.77 175.87
Income from long term investments
Dividend – Trade 3.54 96.82
– Others 19.31 2.03
22.85 98.85
Lease Rent 77.50 36.60
Profit on disposal of fixed assets - net 41.90 90.33
Profit/(loss) on disposal of investments - net
– Current 0.03 255.05
– Long term 333.93 (4.41)
333.96 250.64
Miscellaneous income 139.01 55.74
739.99 708.03
Of the above,
Tax deducted at source from income on:
– Trade investments 0.35 0.45
– Other investments 23.70 25.70
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Schedules annexed to and forming part of the Profit and Loss Account for the year ended March 31, 2008
(Rs. Millions)2008 2007
Schedule 2.3 MANuFACTuRING AND OTHER ExPENSESA Materials
Consumption of raw materials and components - net 57,480.59 54,081.14 Less Scrap sales 504.95 385.10
56,975.64 53,696.04 Purchase of trading goods 1,635.27 1,241.79
B Employees’ remuneration and benefits Salaries, wages and bonus 4,984.56 4,442.28 Contribution to provident, gratuity and other funds 506.40 534.74 Welfare expenses 670.76 611.47
6,161.72 5,588.49 Less Transfer from General Reserve – 781.54
6,161.72 4,806.95 C Other expenses
Power and fuel 452.78 454.35 Consumption of stores and tools 412.75 378.88 Repairs and maintenance – Buildings 169.28 131.50 – Machinery 574.84 416.97 Rent 130.47 112.56 Rates and taxes 11.63 275.95 Insurance 39.81 60.56 Selling and administration expenses – net 3,315.36 3,250.43 Research and development 305.66 294.85 Provision for diminution in value of investments written back - net – (168.13) Bad and doubtful debts/advances provided/written–off – Net of recovery/write back 30.25 8.16
5,442.83 5,216.08 D Movement in value of stock of finished/
trading goods and work-in-progress Opening stock 6,420.77 5,930.97 Closing stock 7,395.52 6,420.77 (Increase)/Decrease (974.75) (489.80)
E Excise duty in value of finished/trading goodsIncrease/(Decrease) 17.30 185.10
69,258.01 64,656.16 F Less Expenses capitalised 6.67 1.25
69,251.34 64,654.91
1. Rent includes amortisation of cost/value of leasehold assets as reduced by transfer from Revaluation reserve (Refer Note 3.7(b) to the Accounts) 4.88 3.03 2. Selling and administration expenses include Directors’ sitting fees 1.54 2.08
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Schedules annexed to and forming part of the Profit and Loss Account for the year ended March 31, 2008
(Rs. Millions)
2008 2007
Schedule 2.4 DEPRECIATION, AMORTISATION AND IMPAIRMENT
Buildings 117.75 85.28
Plant and machinery 1,220.37 1,064.83
Furniture, fittings and equipment 135.12 112.32
Vehicles and aircraft 97.81 76.97
Assets given on lease
Buildings 1.16 –
Plant and machinery – windmills 46.51 38.63
Furniture, fittings and equipment 0.77 –
Intangible assets
Computer software
– Developed 22.21 32.29
– Acquired 48.48 38.68
Technical know-how – Acquired 88.52 61.83
1,778.70 1,510.83
Less Transfer from Revaluation reserve
(Refer Note 3.7(b) to the Accounts)
5.09 5.09
1,773.61 1,505.74
Of the above,
Impairment of Plant and machinery 29.69 16.97
Impairment of Buildings 15.20 –
2008 2007
Schedule 2.5 FINANCIAL EXPENSES
Interest 688.19 226.29
Others 148.11 91.91
836.30 318.20
Less Interest earned on bills receivable, deposits and other accounts 214.67 160.94
Cash discounts earned 51.05 74.11
265.72 235.05
Borrowing cost capitalised 73.18 29.83
497.40 53.32
Of the above,
1. Debenture issue/loan raising expenses amortised 2.34 0.27
2. Premium on prepayment of borrowings amortised 8.90 30.70
3. Tax deducted at source from interest earned 13.67 18.32
(Rs. Millions)
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Notes to the Accounts for the year ended March 31, 2008
Unit of Measurement
2008 2007
1. Information regarding goods manufactured, importsand foreign currency transactions
1.1 Installed capacities – Two shifts(as certified by the Managing director)Commercial vehicles Nos. 84,000 84,000
1.2 Production Commercial vehicles Nos. 84,006 83,549 Engines@ and gensets Nos. 12,652 8,294 @ Engines manufactured against spare capacity of commercial vehicles
1.3 Finished / trading goods and work-in-progress Rs. Millions Rs. MillionsOpening stockCommercial vehicles Nos. 6,076 4,415.96 5,652 3,752.77 Engines and gensets Nos. 303 46.31 222 35.31 Parts for sale – Bought out finished 609.75 508.46 – Works made 253.68 197.13 Work-in-progress 1,095.07 1,437.30 Closing stock Commercial vehicles Nos. 6,748 4,851.40 6,076 4,415.96 Engines and gensets Nos. 1,168 69.83 303 46.31 Parts for sale – Bought out finished 996.23 609.75 – Works made 337.59 253.68 Work-in-progress 1,140.47 1,095.07 Capitalised/transferred for internal use and others – Commercial vehicles Nos. 27 31 – Engines and gensets Nos. 30 11
1.4 Consumption of raw materials and components Plates, sheets and angles Tonnes 54,063 1,704.27 66,981 1,930.93 Bars Tonnes 531 48.35 386 18.51 Steel tubes Metres 30,468 1.62 2,807 0.65 Tyres, tubes and flaps Sets 726,909 5,004.22 755,713 5,247.29 Forgings and castings 5,411.06 5,397.40 Finished and other items 45,311.07 41,486.36
57,480.59 54,081.14 Of the above – Imported items 2,129.76 1,815.29
3.71% 3.36% – Indigenous items 55,350.83 52,265.85
96.29% 96.64%1.5 Imports (c.i.f.)
Raw materials 1,637.24 1,370.07 Trading goods and others 65.57 14.03 Spares and tools 65.66 61.56 Capital goods 1,361.72 2,435.24
3,130.19 3,880.90
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2008 20071.6 Expenditure remitted in foreign currency
Royalty 1.74 16.12 Technical knowhow 409.70 257.57 Interest and commitment charges 260.79 9.14 Commission paid on sales 470.84 605.03 Research and development 136.48 107.91 Travel 33.59 51.03 Consultancy 243.13 57.87 Other expenses 460.96 191.40
2,017.23 1,296.06 1.7 Earnings in foreign currency
Export – FOB value 7,560.48 6,292.15 Interest 141.91 63.77 Others (Freight, insurance, dividend and commission earned) 425.32 226.62
8,127.71 6,582.54 1.8 Dividend remitted in foreign currency
Number of non-resident shareholders 1 1Number of shares on which dividend was remitted 441,166,680 441,166,680 Dividend remitted during the year relating to previous year 661.75 529.40
2. Information regarding managerial remuneration2.1 Remuneration to Managing Director
Salary 8.67 7.80 Contribution to provident and superannuation fund 1.65 1.48 Commission 5.78 5.20 Perquisites 5.91 5.73
22.01 20.21 Perquisites include amounts evaluated as per Income tax Rules in respect of certain items.
2.2 Computation of net profits under Section 198/349of the Companies Act, 1956 Profit before tax 6,381.50 6,045.06 Add – Depreciation/impairment as per books 1,773.61 1,505.74 – Directors’ remuneration 23.55 22.29 – Amortisation of expenses relating to raising /
repayment of loans
11.24
30.97 8,189.90 7,604.06
Deduct – Depreciation as per Section 350 of the Act 1,759.86 1,490.62 – Capital profit on sale of fixed assets and
investments
346.06
269.65 – Expenses relating to raising/repayment of loans 67.84 2.47 – Reversal of provision for dimunition in value of
investments –
168.13
Net Profit 6,016.14 5,673.18 The total remuneration as stated in 2.1 above is within the maximum permissible limit under the Act.
Notes to the Accounts for the year ended March 31, 2008
(Rs. Millions)
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2008 20073. Other financial information3.1 Capital commitments (net of advances) not
provided for (including Rs. 729.48 million (2007 : Rs. 582.13 Million) in respect of Intangible assets)
6,885.63
3,281.57 3.2 Contingent liabilities
a) Guarantees 663.94 66.65 b) Partly paid shares 0.01 0.01 c) Claims (net) against the company not
acknowledged as debt – Sales tax
52.81
15.18 – Others 207.83 125.44 d) Bills discounted 10,029.52 7,806.01
3.3 Interest charge ona) Debentures 61.87 88.81 b) Fixed loans 358.75 52.41
3.4 Auditors’ remuneration Included under Selling and administration expenses For financial audit 3.00 2.40 For cost audit 0.15 0.24 For taxation matters 0.55 0.44 For company law matters 0.03 0.03 For other matters 2.77 3.04 Expenses reimbursed 0.48 1.04
3.5 Total Research and development costs charged to the Profit and Loss account (including amount shown under Schedule 2.3)
1,085.21
791.30
3.6 a) Net exchange difference debited / (credited) to Profit and Loss account
(476.33)
(70.26)
b) Of the above, unrealised gains / loss debited / (credited) to Profit and Loss account
(112.70)
(29.97)
3.7 a) In respect of the following fixed assets useful lives lower than those derived from the rates specified in Schedule XIV to the Companies Act, 1956 have been reckoned in computing depreciation / amortisation for the year.
Useful lives Buildings Revalued buildings are depreciated over the balance useful life as determined by the valuers Plant and machinery Assets subjected to impairment – revised carrying amount over its remaining useful life Windwills 12 Furniture and fittings and equipment Furniture and fittings 8 Office equipment 8 Data processing system 5 Vehicles Cars and motorcycles 3 Trucks and buses 5 Intangible assets Computer software – Developed 5 – Acquired 5 Technical knowhow – acquired 5 / 6b) Depreciation for the year computed on revalued assets over the balance useful life on straight line method includes a net charge of
Rs.5.78 million (2007:Rs. 5.78 million) [Rs. 0.69 million (2007: Rs. 0.69 million) in Schedule 2.3 and Rs. 5.09 million (2007: Rs.5.09 million) in Schedule 2.4] 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.
Notes to the Accounts for the year ended March 31, 2008
(Rs. Millions)
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2008 2007 4. Earnings per sharea) Basic earnings per share
Profit after taxation as per Profit and Loss account (in Rs. million) (A) 4,693.10 4412.86Weighted average number of equity shares outstanding (B) 1,328,598,817 1,303,890,649Basic earnings per share (Face value Re. 1) (in Rs.) (A/B) 3.53 3.38Profit before extraordinary items net of tax (in Rs. million) (C) 4,777.18 4,499.61Basic earnings per share (Face value Re. 1) excluding extraordinary item net of tax (in Rs.) (C/B) 3.60 3.45
b) Diluted earnings per shareProfit after taxation as per Profit and Loss account (in Rs. million) 4,693.10 4,412.86 Add Interest and other costs net of tax (3.20) (5.28)Adjusted profits (in Rs. million) (D) 4,689.90 4,407.58 Weighted average number of potential equity shares on conversion of FCCN (E) 1,470,000 7,938,000 Weighted average number of equity shares (F= B+E) 1,330,068,817 1,311,828,649 Diluted earnings per share (Face value Re.1)(in Rs.) (D/F) 3.53 3.36 Diluted earnings per share (Face value Re. 1) excluding extraordinary items net of tax (in Rs.)
3.59
3.43
5. Composition of net deferred tax liability Rs. MillionsDeferred tax liabilities – Depreciation/Research and development expenditure 2,673.59 2,138.48 – Other timing differences 24.22 4.98 Deferred tax assets – Voluntary retirement scheme compensation (32.87) (35.13) – Other timing differences (126.74) (139.03)
2,538.20 1,969.29 6. Segment information
The Company is principally engaged in a single business segment viz., Commercial vehicles and related components and operates in one geographical segment as per Accounting Standard 17 on ‘Segment Reporting’.
7. Related party disclosure a) List of parties where control exists Holding company Hinduja Automotive Limited (formerly LRLIH Limited ), United Kingdom Machen Holdings SA (Holding Company of Hinduja Automotive Limited) Machen Development Corporation, (Holding Company of Machen Holdings SA) Amas Holdings SA (Holding Company of Machen Development Corporation)b) Other related parties with whom transactions have taken place during the year Fellow subsidiary Hinduja Foundries Limited, a company under same management Associates Albonair GmbH, Germany Ashley Airways Limited Ashley Alteams India Private Limited Ashley Holdings Limited Ashley Investments Limited Ashley Transport Services Limited Ashok Leyland Project Services Limited Ashok Leyland (UAE) LLC, Ras Al Khaimah, UAE Automotive Coaches and Components Limited Automotive Infotronics Private Limited Avia Ashok Leyland Motors s.r.o, Czech Republic
Notes to the Accounts for the year ended March 31, 2008
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Defiance Testing and Engineering Services, Inc. USA Gulf Ashley Motor Limited Irizar TVS Limited Lanka Ashok Leyland Limited, Sri Lanka Key management personnel Mr. R. Seshasayee, Managing Director
(Rs. Millions)2008 2007
(c) Material Transactions with related parties (i) Purchase of raw materials and components Hinduja Foundries Limited 2,184.52 2,743.15 Automotive Coaches and Components Limited 911.04 992.02 Irizar TVS Limited 634.16 477.68 Other associate companies – 5.41 (ii) Sales Lanka Ashok Leyland Limited 1,090.63 1,228.49 Gulf Ashley Motor Limited 515.98 549.03 (iii) Other expenditure Lanka Ashok Leyland Limited 61.15 50.78 Avia Ashok Leyland Motors s.r.o. 10.76 – Ashok Leyland Project Services Limited 3.35 22.50 (iv) Expenses recoverable to/(from) Defiance Testing & Engineering Services Inc. (62.23) – Lanka Ashok Leyland Limited (50.04) – Other associate companies (11.70) – Gulf Ashley Motors Limited (1.99) (2.01) Hinduja Automotive Limited 1.58 0.92 (v) Interest and other income Avia Ashok Leyland Motors s.r.o. 111.10 39.78 Defiance Testing & Engineering Services Inc. 35.66 – Other associate companies 10.01 14.77 (vi) Dividend income Hinduja Foundries Limited – 92.31 Lanka Ashok Leyland Limited 3.54 4.51 Other associate companies – 1.71 (vii) Dividend Hinduja Automotive Limited 1,017.33 1,191.15 Managing Director 0.02 0.03 (viii) Remuneration to key management personnel Refer 2.1 of Notes to the Accounts (ix) Guarantees given Avia Ashok Leyland Motors s.r.o. 281.75 – Ashok Leyland (UAE) LLC 273.13 – (x) Sale of fixed assets Hinduja Foundries Limited – 7.79 (xi) Acquisition/disposal of investments Associate companies 171.75 (130.59) (Refer Note 4 in Schedule 1.6) (xii) Advance given for share capital Ashley Alteams India Private Limited 27.58 – Automotive Infotronics Private Limited 0.92 –
Notes to the Accounts for the year ended March 31, 2008
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(Rs. Millions)2008 2007
(xiii) Loans given Avia Ashok Leyland Motors s.r.o. 1,185.90 – Defiance Testing and Engineering Services, Inc. 544.05 – Ashok Leyland (UAE) LLC 176.33 – Albonair GmbH 46.73 – (xiv) Outstanding balances – Debtors Lanka Ashok Leyland Limited 125.24 – Gulf Ashley Motors Limited 24.07 55.70 Other associate companies 15.28 0.88 – Loans and advances (including interest accrued) Avia Ashok Leyland Motors s.r.o 2,616.02 1,582.96 Defiance Testing and Engineering Services Inc. 623.02 – Other associate companies 296.13 89.50 Machen Development Corporation 206.56 206.56 Key management personnel 0.24 0.31 – Creditors for materials and expenses Hinduja Foundries Limited 122.69 204.39 Automotive Coaches and Components Limited – 43.15 Other associate companies 46.50 9.18 Key management personnel 6.08 5.20 – Financial guarantees Avia Ashok Leyland Motors s.r.o 281.75 – Ashok Leyland (UAE) LLC 273.13 – Automotive Coaches and Components Limited 66.50 66.50 (xv) Advances to associate companies in the nature of loan (excluding interest accrued) included in (xiv) above Avia Ashok Leyland Motors s.r.o 2,611.81 1,582.96 Defiance Testing and Engineering Services Inc. 541.62 – Ashok Leyland (UAE) LLC 183.89 6.43 Albonair GmbH 48.97 – – Maximum loan (excluding interest accrued) outstanding during the year from associate companies Avia Ashok Leyland Motors s.r.o 2,611.81 1,582.96 Defiance Testing and Engineering Services Inc. 551.88 – Ashok Leyland (UAE) LLC 183.89 6.43 Albonair GmbH 48.97 – Ashley Holdings Limited – 16.20 Ashley Investments Limited – 17.80 Ashok Leyland Project Services Limited – 10.00
Notes to the Accounts for the year ended March 31, 2008
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Ashok Leyland Annual Report 08
8. The Company raised US$ 100 million (notes of US $ 1000 each) during April 2004 by way of Foreign currency convertible notes (FCCN) bearing interest rate of 0.5% per annum. Note holders have an option to convert each note of US$ 1000 into 1,470 shares of Re. 1 each at the prevailing conversion price of Rs.30. During the year, 6,468,000 (2007: 102,283,541) equity shares were allotted consequent to conversion of 4,400 (2007: 71,900) FCCN aggregating to US$ 4.40 million (2007: US$ 71.90 million). Cumulatively upto March 31, 2008, holders of FCCN aggregating to US$ 99.00 million have exercised their option and were allotted 141,044,117 equity shares. The balance notes unless previously converted, redeemed or repurchased and cancelled, will be redeemed on April 30, 2009 at 100% of their principal value.
9. The Company has entered into operating lease arrangements with various parties for leasing out windmills. Ashok Leyland Project Services Limited, an associate company, through its wind energy division, maintains these assets and has guaranteed the following minimum lease rentals:
(Rs. Millions)2008 2007
(a) Receivable within one year from the end of the year 77.00 55.00(b) Receivable between one year and five years 365.00 255.00(c) Receivable after five years 293.00 285.00(d) Amount recognized during the year 77.50 36.60
10. In terms of the FCCN issue and on the basis of the legal opinion obtained in this regard, the note holders, who have exercised their option to convert the notes upto the record date for the dividend that may be declared for the year ended March 31, 2008, will be entitled to the said dividend. Accordingly, the Company has provided for the proposed dividend (including corporate dividend tax thereon) on the basis that all the FCCNs remaining outstanding as of March 31, 2008 would get converted into equity shares before the record date.
11. Derivatives
The Company uses derivative financial instruments such as forward contracts, currency swap to hedge certain currency exposures, present and anticipated, denominated mostly in US dollars, EURO, Japanese YEN and Great Britain Pounds. Generally such contracts are taken for exposures materialising in the next six months. The Company actively manages its currency/interest rate exposures through a centralised treasury division and uses derivatives to mitigate the risk from such exposures. The use of derivative instruments is subject to limits and regular monitoring by appropriate levels of management. The limits and monitoring systems are periodically reviewed by management and the Board. The market risk on derivatives is mitigated by changes in the valuation of underlying assets, liabilities or transactions, as derivatives are used only for risk management.
Notes to the Accounts for the year ended March 31, 2008
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 83 6/25/2008 7:27:28 PM
83
The information on derivative instrument is as follows:A] Dervative instruments outstandings: (Millions)Details Buy/ Sell Amount in foreign currency
2008 2007Foreign Exchange Contracts – USD/INR Sold $62.50 $31.89 – USD/INR Bought $8.63 $10.07 – EUR/USD Bought €6.28 €2.62 – GBP/USD Bought £1.35 £0.50 – USD/JPY Sold $15.17 $2.91 – USD/CHF Sold $0.83 – Currency Swaps – USD/JPY Bought $85.00 $20.00 Refer Note 5 in Significant Accounting Policies for accounting treatment of such derivatives
B] Foreign currency exposure not hedged by derivative instrument: (Millions)
Details Amount (Foreign currency) Amount Rs.2008 2007 2008 2007
Amount receivable on account of sale of goods, loans, deposits, etc.
$97.98
$68.03
3,930.92
2,957.26
Others Others 49.42 37.93 Amount payable on account of purchase of goods, loans, interest etc. $169.90 $97.55 6,816.27 4,240.50
€46.51 €39.70 2,950.48 2,297.44 ¥800.20 ¥839.70 322.98 309.41
£1.41 £2.61 112.35 222.13 CHF 5.55 CHF 0.20 224.22 7.01
Notes to the Accounts for the year ended March 31, 2008
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 84 6/25/2008 7:27:28 PM
84
Ashok Leyland Annual Report 08
12. Employee Benefits
a) In the previous year, the Company had determined the liability for Employee benefits as at March 31, 2007 in accordance
with the revised Accounting Standard 15 – and adjusted Rs. 517.90 million (net of tax of Rs. 263.64 million) relating to
the period upto March 31, 2006 from the opening General Reserve, in terms of the said Standard.
b) Defined benefit plans – As per Acturial valuation on March 31, 2008 (Rs. Millions)
Gratuity Compensated absences
Other defined benefit plans
2008 2007 2008 2007 2008 2007
A Expense recogonised in the statement of Profit & Loss
Account for the year ended March 31, 2008
1 Current service cost 84.82 77.02 57.54 57.23 10.57 14.25
2 Interest cost 93.52 77.84 36.58 32.80 5.55 4.55
3 Expected return on plan assets (85.60) (69.54) – – – –
4 Net actuarial (gain) / loss recognised during the year 6.39 126.71 14.03 0.60 (6.42) 7.03
5 Total expense 99.13 212.03 108.15 90.63 9.70 25.83
B Actual return on plan assets
1 Expected return on plan assets 85.60 69.54 – – – –
2 Actuarial gain/ (loss) on plan assets 27.53 20.49 – – – –
3 Actual return on plan assets 113.13 90.03 – – – –
C Net Asset/ (Liability) recognised in the Balance Sheet
1 Present value of the obligation 1,423.77 1,282.38 539.61 482.26 71.53 76.89
2 Fair value of plan assets 1,325.34 1,070.35 – – – –
3 Funded status [surplus/ (deficit)] (98.42) (212.03) (539.61) (482.26) (71.53) (76.89)
4 Unrecognised past service cost – – – – – –
5 Net Asset/(Liability) recognised in the Balance Sheet (98.42) (212.03) (539.61) (482.26) (71.53) (76.89)
D Change in Present value of the Obligation during the year
1 Present value of obligation as at beginning of the year 1,282.38 1,074.15 482.26 428.49 76.89 62.62
2 Current service cost 84.82 77.02 57.54 57.23 10.58 14.25
3 Interest cost 93.52 77.84 36.58 32.80 5.55 4.55
4 Benefits paid 70.87 93.83 50.80 36.86 15.07 11.56
5 Actuarial (gain) / loss on obligation 33.92 147.20 14.03 0.60 (6.42) 7.03
6 Present value of obligation as at end of the year 1,423.77 1,282.38 539.61 482.26 71.53 76.89
E Change in Assets during the year
1 Fair value of plan assets as at beginning of the year 1,070.35 874.16 – – – –
2 Expected return on plan assets 85.60 69.54 – – – –
3 Contributions 212.74 199.99 – – – –
4 Benefits paid 70.87 93.83 – – – –
5 Actuarial gain / (loss) on plan assets 27.53 20.49 – – – –
6 Fair value of plan assets as at end of the year 1,325.35 1,070.35 – – – –
F Experience adjustments in
1 Plan liabilities – loss/(gain) 33.92 147.20 26.85 1.01 (6.42) 7.03
2 Plan assets – loss/(gain) (27.53) (20.49) – – – –
Notes to the Accounts for the year ended March 31, 2008
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 85 6/25/2008 7:27:29 PM
85
G Major categories of plan assets as a percentage of total
plan
100% Unfunded Unfunded
Qualifying
insurance policy
H Actuarial Assumptions
1 Discount rate
2 Salary escalation
3 Expected rate of return on plan assets
2008
8.0%
6.3%
8.0%
2007
7.5%
5.0%
7.5%
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.
d) During the year the Company has recognised the following amounts in the Profit and Loss Account in Schedule 2.3 B
– Salaries and wages include compensated absences Rs. 108.15 million (2007: Rs. 90.63 million) and other defined
employee benefits Rs. 0.43 million ( 2007: Rs. 0.40 million)
– Contribution to provident, gratutiy and other funds include Provident fund and family pension Rs. 264.67 million
(2007: Rs. 226.65 million), super annuation Rs.71.13 million (2007: Rs. 54.05 million), gratuity fund Rs.99.13
million (2007: Rs. 212.03 million) and other funds Rs.69.03 million (2007 Rs. 42.01 million)
– Welfare expenses include contribution to employee state insurance plan Rs. 2.64 million (2007: Rs. 2.17 million) and
other defined employee benefits Rs. 9.27 million (2007: Rs. 25.43 million).
e) In the previous year, the Company had adopted the Revised Accounting Standard 15 on Employee benefits. Accordingly,
the comparitives for four prior years have not been disclosed.
13. 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.
14. Figures for the previous year have been regrouped / amended wherever necessary.
Signatures to Statement of Significant Accounting Policies, Schedules and Notes to the Accounts.
Notes to the Accounts for the year ended March 31, 2008
For and on behalf of the Board
K. SRIDHARAN A.R. CHANDRASEKHARAN R. SESHASAYEE R. J. SHAHANEYChiefFinancialOfficer ExecutiveDirector& ManagingDirector Chairman Company Secretary
May 08, 2008Chennai
Gratuity Compensated absences
Other defined benefit plans
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 86 6/25/2008 7:27:29 PM
86
Ashok Leyland Annual Report 08
87
Balance Sheet Absract and Company’s General Business Profile
I. Registration Details
Registration No. State Code
Balance Sheet Date
Date Month Year
II. Capital Raised during the year (Amount in Rs. Thousands) (See note below)
Public Issue Rights Issue
Bonus Issue Private Placement
III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)
Total Liabilities Total Assets
Sources of Funds
Paid-up Capital Reserves & Surplus
Secured Loans Unsecured Loans
Deferred Tax Liability
Application of Funds
Net Fixed Assets Investments
Net Current Assets Misc. Expenditure
Accumulated Losses
IV. Performance of Company (Amount in Rs. Thousands)
Turnover Total Expenditure
Profit/LossbeforeTax Profit/LossafterTax
Earnings Per Share in Rs. DIvidend Rate %
V. Generic Names of Three Principal Products of Company
Item Code No. (ITC Code) Product Description
Note:
SharecapitaloftheCompanyhasincreasedduringtheyearbyRs.6,468,000/- due to allotment of 6,468,000 equity shares on conversion of FCCNs (Refer Note 8 in Notes to the Accounts).
3 1 0 3 2 0 0 8
+ +
0 0 0 1 0 5
N I L
N I L
5 5 6 2 2 4 2 8
1 3 3 0 3 3 8
1 9 0 2 4 0 0
2 5 3 8 1 9 5
2 0 5 4 7 9 5 0
6 0 3 3 1 6 4
N I L
7 8 0 3 1 2 2 4
8 7 0 6 0 0 4 2 C o M M E R C I A L v E h I C L E S
E N G I N E S
S P A R E P A R T S
6 3 8 1 5 0 4
8 4 0 8 9 0 1 0
3 . 5 3
8 7 0 8 0 0 0 0
1 8
N I L
N I L
5 5 6 2 2 4 2 8
2 0 1 5 9 4 8 4
6 9 7 2 6 1 2
6 0 9 9 0 0 0
2 2 2 9 1 5
7 1 6 4 9 7 2 0
4 6 9 3 1 0 4
1 5 0
+ – + –
For and on behalf of the Board
K. SRIDHARAN A.R. CHANDRASEKHARAN R. SESHASAYEE R. J. SHAHANEYChiefFinancialOfficer ExecutiveDirector& ManagingDirector Chairman CompanySecretary
May 08, 2008Chennai
ASHOKLeyland_082-895-1_AR2K7-8_Ord_2 co_pg 26-94.indd 87 6/27/2008 7:28:58 PM
Sl.
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ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 88 6/25/2008 7:27:30 PM
88
Ashok Leyland Annual Report 08
Sl.
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g.
37H
arih
ar P
.46
Gen
eral
Man
ager
- H
osur
II01
.08.
0550
4733
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c., D
BM
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or -
Sour
cing
, GE
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ontro
ls
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arih
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eput
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anag
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udge
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and
R
epor
ting
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6.96
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688.
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Com
, AIC
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23
Exec
utiv
e M
anag
er, C
hem
plas
t San
mar
Ltd
.
39H
omba
li V.
M.
55Sp
ecia
l Dire
ctor
- Cu
stom
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ort
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9.82
4610
700.
00B
.Tec
h., M
BA
31En
gine
er -
Mar
ket P
lann
ing,
HM
T Lt
d.
40In
dira
banu
G.T
.58
Assi
stan
t Gen
eral
Man
ager
- Pr
oduc
t Dev
elop
men
t01
.10.
7331
7780
6.00
DM
E37
----
41Ja
iraj S
harm
a*50
Spec
ial D
irect
or -
Cons
truct
ion
Equi
pmen
t Pro
ject
01.1
1.07
1498
119.
00B
E, P
GD
MM
, PD
ME
30As
soci
ate
Vice
-Pre
side
nt -
Tech
nica
l, Es
cort
s Co
nstru
ctio
n Eq
uipm
ent L
td.
42Ja
nard
hana
n T.
C.56
Dep
uty
Gen
eral
Man
ager
- M
ater
ial
Plan
ning
Sec
tion
01.0
7.74
3385
477.
00D
ME
34---
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 89 6/25/2008 7:27:30 PM
89
Sl.
No.
Nam
eA
geD
esig
natio
n D
ate
of
Com
men
cem
ent
of E
mpl
oym
ent
Rem
uner
atio
nR
ecei
ved
/R
ecei
vabl
eR
s.
Qua
lifica
tion
Tota
lExp
erie
nce
(Yea
rs)
Part
icul
ars
of P
revi
ous
Exp
erie
nce
43Ja
yara
man
M.
58As
sist
ant G
ener
al M
anag
er -
Purc
hase
13.0
2.82
2663
622.
00B
E33
---
44Je
yago
pu E
.54
Hea
d - R
elia
bilit
y13
.10.
7934
1703
7.75
B.S
c., D
MIT
28---
45K
alsi
S.S
.58
Dep
uty
Gen
eral
Man
ager
- Pa
rts
01.0
2.78
2691
427.
75B
E30
---
46K
arl R
ober
tson
*65
Hea
d - C
ab a
nd B
ody
Engi
neer
ing
14.0
5.07
4497
855.
00M
E22
Seni
or E
ngin
eer,
Dai
mle
r Ch
rysl
er
47K
haita
n B
.58
Spec
ial D
irect
or -
Def
ence
05
.08.
7954
6538
4.75
B.E
.35
Reg
iona
l Ser
vice
Eng
inee
r, H
indu
stan
Mot
ors
48K
rishn
an R
. Iye
r41
Dep
uty
Gen
eral
Man
ager
- Pr
oduc
tion
29.0
3.06
3364
592.
75B
E16
Div
nl. M
gr. -
Mfg
., Ta
ta C
umm
ins
Ltd.
49Ku
mar
V.S
.55
Dep
uty
Gen
eral
Man
ager
- Ex
port
s01
.10.
7625
0417
2.75
BE,
PG
DB
A, P
GD
FT, M
BA
31---
50La
kshm
inar
ayan
an
P.A.
Dr.
58H
ead
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ine
Res
earc
h an
d D
evel
opm
ent
16.0
5.02
4186
753.
25B
.Tec
h., M
.S.,
Ph.D
29Sr
. GM
- R
esea
rch
, Kirl
oska
r O
il En
gine
s Lt
d.
51Lo
bo A
.53
Gen
eral
Man
ager
- Ex
port
s21
.08.
8033
8461
0.75
BE
27---
52M
enon
C.B
.S.
62D
eput
y G
ener
al M
anag
er -
Prod
uct
Dev
elop
men
t28
.01.
9129
0702
5.75
B.S
c. (
Engg
), M
E36
Chie
f Dev
elop
men
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inee
r, Te
lco
53M
ohan
R.S
.54
Dep
uty
Gen
eral
Man
ager
- St
rate
gic
Sour
cing
17.0
4.96
3082
146.
75B
E, P
GD
MM
, PG
DB
A33
Purc
hase
Man
ager
, Baj
aj T
empo
Ltd
.
54M
ohan
a S
riniv
asan
Mrs
.53
Dep
uty
Gen
eral
Man
ager
- Fi
nac
Serv
ices
05.1
2.96
3751
110.
75B
.Sc.
, ACA
; CA
IIB29
Vice
-Pre
side
nt, A
pple
Cre
dit C
orpo
ratio
n
55M
ohan
akris
hnan
N.
56Ex
ecut
ive
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ctor
- In
tern
al A
udit
01.0
7.77
8439
749.
25B
.Sc.
, ACA
.32
Gro
up A
ccou
nts
Offi
cer,
Eas
tern
Coa
l Fie
lds
Ltd.
56M
ural
i S.
50G
ener
al M
anag
er -
Nep
tune
Pro
ject
10.1
0.81
4462
310.
00B
E (H
ons)
26---
57M
ural
ithar
an N
.50
Gen
eral
Man
ager
- En
gine
R
esea
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& D
evel
opm
ent
09.0
2.07
2451
122.
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ons)
, MB
A26
Sr G
M -
R&
D, I
ndia
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58M
urug
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n N
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Plan
t Dire
ctor
- En
nore
01.0
5.75
5349
968.
25B
.E.
31---
59M
uthu
subr
aman
ian
C.S.
58G
ener
al M
anag
er -
Expo
rts
01.0
7.74
4699
909.
75B
.E.
32---
60N
agar
ajan
S.*
63Ex
ecut
ive
Dire
ctor
- Au
to
Com
pone
nts
Bus
ines
s02
.04.
9780
6720
8.00
B.E
., PG
Dip
. in
Indu
stria
l Ad
mn.
40M
anag
ing
Dire
ctor
, MAC
Indu
stria
l Pro
duct
s,
Chen
nai
61N
ages
h B
asav
anah
alli*
43
Exec
utiv
e D
irect
or -
Ashl
ey D
esig
n an
d En
gine
erin
g Se
rvic
es04
.09.
0610
7946
3.80
BE,
MS,
MB
A16
Chry
sler
, USA
62N
ages
h Pr
akas
h K
.51
Hea
d - M
issi
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emba
16.1
0.81
3265
203.
75B
E, M
S26
---
63N
air
M.K
.R.
61G
ener
al M
anag
er -
Spec
ial P
roje
cts
01.1
0.72
4758
121.
00B
.Sc.
(En
gg.)
, DIM
38---
64N
ares
h G
upta
57G
ener
al M
anag
er -
Stra
tegi
c So
urci
ng13
.12.
0633
7752
1.28
B.T
ech,
MA
(Mgt
Sci
ence
)31
Coun
try
Hea
d, C
ontin
enta
l Eng
ines
Ltd
.
65N
atar
ajan
S.
59As
sist
ant G
ener
al M
anan
ger
- Pr
oduc
t Dev
elop
men
t01
.10.
7228
3098
2.00
DEE
, B.S
c.37
---
66N
atra
j M.
66Ex
ecut
ive
Dire
ctor
- Pr
oduc
t D
evel
opm
ent
07.0
4.78
1089
9792
.00
B.E
.44
Man
ager
- Pl
g. &
Dev
pt. B
imet
al B
earin
gs
Ltd.
, Coi
mba
tore
67Pa
dman
abha
n K
.G.
51D
eput
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ener
al M
anag
er -
Man
ufac
turin
g01
.07.
7438
0617
1.75
B.S
c.(E
ngg)
33---
68Pa
dman
abha
n M
.49
Chie
f Exe
cutiv
e O
ffice
r - T
elem
atic
s07
.12.
0532
7553
7.95
BE,
PG
DM
24Vi
ce-P
resi
dent
(O
pera
tions
), T
ata
Tele
serv
ices
Lt
d.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 90 6/25/2008 7:27:30 PM
90
Ashok Leyland Annual Report 08
Sl.
No.
Nam
eA
geD
esig
natio
n D
ate
of
Com
men
cem
ent
of E
mpl
oym
ent
Rem
uner
atio
nR
ecei
ved
/R
ecei
vabl
eR
s.
Qua
lifica
tion
Tota
lExp
erie
nce
(Yea
rs)
Part
icul
ars
of P
revi
ous
Exp
erie
nce
69Pa
ram
esw
aran
R.
52D
eput
y G
ener
al M
anag
er -
Net
wor
k Pl
anni
ng21
.07.
8031
1394
0.50
B.S
c., D
MIT
27---
70Pa
rtha
sara
thy
K.
61D
eput
y G
ener
al M
anag
er -
Prod
uct
Dev
elop
men
t15
.10.
7431
3340
2.75
M.T
ech.
, MB
A36
Met
allu
rgis
t, Te
lco
71Pa
tel A
.K.*
59D
eput
y G
ener
al M
anag
er -
Purc
hase
01.1
0.81
2421
099.
75B
E35
Engi
neer
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C, T
elco
72Pa
ttabi
ram
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.59
Assi
stan
t Gen
eral
Man
ager
- Ex
port
s01
.03.
8422
5117
3.00
M.T
ech.
MB
A37
---
73Pi
llai N
.S.N
.59
Dep
uty
Gen
eral
Man
ager
- In
form
atio
n Se
curit
y an
d R
isk
Man
agem
ent
20.0
1.82
3268
813.
75B
.Sc,
ACA
, CIA
, CIS
M34
---
74Pr
akas
h C.
54D
eput
y G
ener
al M
anag
er -
Prod
uct
Dev
elop
men
t01
.03.
7827
4254
6.75
BE,
M.T
ech.
30---
75Pr
asan
n D
eshp
ande
54G
ener
al M
anag
er -
Engi
ne
Res
earc
h an
d D
evel
opm
ent
03.0
1.00
3043
749.
75M
.Tec
h.29
Man
ager
- D
esig
n, T
exm
aco
76R
ajag
opal
R.
58D
eput
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ener
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anag
er -
Man
ufac
turin
g Se
rvic
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.06.
8131
5358
2.75
BE,
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DM
M35
Mai
nten
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Eng
inee
r, B
est &
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mpt
on L
td.
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ajag
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a M
enon
R.
53Sp
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l Dire
ctor
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oduc
t D
evel
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09.0
8.80
5085
824.
50B
.Tec
h.27
---
78R
ajar
aman
N.
53D
eput
y G
ener
al M
anag
er -
Mat
eria
ls12
.09.
7925
3381
9.00
BE,
MB
A28
---
79R
ajen
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ar K
.44
Dep
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Gen
eral
Man
ager
- St
rate
gic
Sour
cing
03.0
7.06
3055
124.
80B
E, P
GD
BA
22G
M -
Stra
tegi
c So
urci
ng, R
oyal
Enfi
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Mot
ors
80R
ajes
h S.
48D
eput
y G
ener
al M
anag
er -
Mar
ketin
g Se
rvic
es20
.01.
8326
5335
2.50
BE
24---
81R
ajin
der
Mal
han
59Ex
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ctor
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tern
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nal
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ratio
ns29
.05.
0211
1534
77.0
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.Sc
(Eng
g.)
42Co
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tant
82R
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haria
*49
Exec
utiv
e D
irect
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ketin
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.06.
0739
7866
8.00
BE
(Hon
s)26
Pres
iden
t, B
rose
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a Au
tom
otiv
e Sy
stem
s P.
Ltd
.
83R
aju
S.K
.61
Hea
d - C
urre
nt V
ehic
le E
ngin
eerin
g19
.04.
7868
0131
9.50
M.E
.36
Seni
or D
evel
opm
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O
84R
akes
h G
upta
49G
ener
al M
anag
er -
Corp
orat
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uman
Res
ourc
es10
.11.
0035
6710
8.75
B.T
ech
(Mec
h), P
GD
IE, F
ICW
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Bus
ines
s D
evpt
Man
ager
, BO
C In
dia
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85R
ama
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56G
ener
al M
anag
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ect
Plan
ning
01.0
4.75
3789
451.
50B
E33
---
86R
ama
Rao
K.K
.*59
Dep
uty
Gen
eral
Man
ager
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b Pa
nel P
ress
Sho
p17
.05.
0025
1963
8.95
BE,
M.T
ech.
35As
soci
ate
Vice
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side
nt, J
BM
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ls
87R
amac
hand
ran
S.59
Hea
d - C
orpo
rate
Qua
lity
Engi
neer
ing
01.0
7.74
3659
375.
75B
E, D
ip in
SQ
C &
OR
33---
88R
amad
urai
S.G
.56
Spec
ial D
irect
or -
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ects
10.0
5.82
5188
195.
00B
.E.
33Sa
les
Exec
utiv
e, G
reav
es C
otto
n &
Co.
Ltd
.
89R
amak
umar
M.
58D
eput
y G
ener
al M
anag
er -
Prod
uct
Dev
elop
men
t01
.01.
7531
2232
9.75
DM
E, B
S33
---
90R
aman
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.55
Dep
uty
Gen
eral
Man
ager
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rts
10.0
8.85
2587
852.
50B
E, D
IM34
Asst
. Sal
es M
anag
er, S
hard
low
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a Lt
d.
91R
aman
i N.V
.50
Reg
iona
l Man
ager
- W
est
23.0
4.83
2558
538.
00B
E, M
BA
25---
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 91 6/25/2008 7:27:31 PM
91
Sl.
No.
Nam
eA
geD
esig
natio
n D
ate
of
Com
men
cem
ent
of E
mpl
oym
ent
Rem
uner
atio
nR
ecei
ved
/R
ecei
vabl
eR
s.
Qua
lifica
tion
Tota
lExp
erie
nce
(Yea
rs)
Part
icul
ars
of P
revi
ous
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erie
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92R
ames
h V.
50D
eput
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ener
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anag
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uct
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elop
men
t28
.02.
8331
0905
1.75
B.T
ech.
25---
93R
amji
Nar
ayan
awam
y55
Gen
eral
Man
ager
- So
uth
01.0
3.81
3316
898.
75B
E34
Sale
s As
st.,
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ery
Stru
ctur
als
94R
amku
mar
K.
44D
eput
y G
ener
al M
anag
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orat
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easu
ry07
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6476
4.75
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CS20
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ager
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nanc
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AC In
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ries
95R
anga
nath
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51D
eput
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ur13
.11.
8537
1272
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om, A
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CWA
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. Vis
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coun
tant
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anga
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eput
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ener
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anag
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Prod
uctio
n19
.01.
8332
2255
4.75
BE,
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A25
---
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ao R
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ctor
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ce30
.09.
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s En
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.
98R
avic
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50D
eput
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ener
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anag
er -
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tegi
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urci
ng23
.10.
8125
5604
3.50
BE
26---
99R
avic
hand
ran
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52R
egio
nal M
anag
er -
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th12
.09.
7928
7786
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BE
28---
100
Sam
son
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46D
eput
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anag
er -
Hum
an
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ourc
es14
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0624
8650
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BA,
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L18
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iden
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d - H
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ritta
nia
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strie
s
101
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vana
n N
. Dr.
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anag
er -
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t26
.09.
0552
8935
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anni
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anag
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ntel
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pora
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SA
102
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kara
n G
.50
Dep
uty
Gen
eral
Man
ager
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rson
nel &
Adm
inis
tratio
n10
.07.
0331
1921
7.75
BA,
MA
(SW
)27
DG
M -
P&A,
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dust
an A
eron
autic
s Lt
d.
103
Sath
ya P
rasa
d M
. Dr.
40Se
ctio
n H
ead
- Adv
ance
d En
gine
erin
g 18
.04.
0430
3710
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inci
pal E
ngin
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a Co
rpor
atio
n, U
SA
104
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yana
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Dep
uty
Gen
eral
Man
ager
- Sy
stem
s19
.01.
8325
7267
6.50
BE
(Hon
s)25
---
105
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hara
man
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54D
eput
y G
ener
al M
anag
er -
Expo
rt
Fina
nce
04.0
2.81
2625
002.
50B
.Com
, ICW
AI32
Acco
unts
Ass
t., In
dian
Org
anic
Che
mic
als
106
Seng
odan
P.
59As
sist
ant G
ener
al M
anag
er -
Engi
nes
01.1
0.76
2086
016.
00B
E37
---
107
Sesh
adri
A.52
Dep
uty
Gen
eral
Man
ager
- M
issi
on
Sum
mit
12.0
9.79
2482
895.
50B
.Sc.
, DM
IT, M
BA
28---
108
Sesh
adri
K.S
.55
Dep
uty
Gen
eral
Man
ager
- Pr
oduc
t D
evel
opm
ent
01.0
4.75
2610
245.
50D
ME,
B.T
ech.
33---
109
Sesh
asay
ee R
. 60
Man
agin
g D
irect
or21
.01.
7621
3251
81.0
0B
.Com
., A
.C.A
.37
Man
ager
- Ac
coun
ts,
Hin
dust
an L
ever
Ltd
., M
umba
i
110
Shek
har
Aror
a55
Spec
ial
Dire
ctor
- M
anag
emen
t D
evel
opm
ent
02.0
1.81
5615
326.
75B
.A.,
MSW
31Pe
rson
nel O
ffice
r, O
swal
Ste
el
111
Siva
ram
an L
.*47
Dep
uty
Gen
eral
Man
ager
- Pr
oduc
t D
evel
opm
ent
15.1
0.07
1209
498.
00B
E, P
GD
BA
23Jo
int G
M, L
&T
e-En
gg. S
olut
ions
112
Soun
dara
raja
n G
.59
Gen
eral
Man
ager
- H
osur
I01
.03.
7443
2832
7.00
B.E
. DIM
33
---
113
Srid
hara
n B
alaj
i K.
53G
ener
al M
anag
er -
Man
ufac
turin
g21
.10.
7932
8082
0.75
BE
28---
114
Srid
hara
n K
.54
Chie
f Fin
anci
al O
ffice
r06
.03.
8210
8830
85.0
0B
.Com
., A
CA, G
rad.
CWA
31Sr
. Sys
tem
Ana
lyst
, Tat
a Co
nsul
tanc
y Se
rvic
es, M
umba
i
115
Srik
ant S
riniv
asan
51Sp
ecia
l D
irect
or -
Hum
an
Res
ourc
es26
.03.
8226
6130
0.75
B.C
om.,
MA
(Per
s M
gt)
29Pe
rson
nel O
ffice
r, AC
C L
td.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 92 6/25/2008 7:27:31 PM
92
Ashok Leyland Annual Report 08
Sl.
No.
Nam
eA
geD
esig
natio
n D
ate
of
Com
men
cem
ent
of E
mpl
oym
ent
Rem
uner
atio
nR
ecei
ved
/R
ecei
vabl
eR
s.
Qua
lifica
tion
Tota
lExp
erie
nce
(Yea
rs)
Part
icul
ars
of P
revi
ous
Exp
erie
nce
116
Srin
ivas
an R
.59
Gen
eral
Man
ager
- Fi
nanc
e01
.08.
7639
7766
7.25
B.S
c., A
CA31
---
117
Srin
ivas
an S
.R.
55D
eput
y G
ener
al M
anan
ger
- In
tern
al A
udit
10.0
7.82
2964
753.
75B
.Com
, ACA
30Ch
ief A
ccou
ntan
t, Cy
max
Dis
tribu
tors
P. L
td.
118
Stan
ley
John
ston
e A.
54D
eput
y G
ener
al M
anag
er -
Chas
sis
Asse
mbl
y06
.01.
8024
4901
9.50
BE
28---
119
Subr
aman
ian
K.V
.58
Gen
eral
Man
ager
- Pr
ojec
t Pl
anni
ng01
.07.
7435
3883
7.25
BE,
DIIT
33---
120
Subr
aman
ya G
.60
Gen
eral
Man
ager
- Pl
anni
ng &
Q
ualit
y24
.07.
9643
9495
9.25
BE,
Dip
. in
Mkg
. & A
dvg.
37AG
M -
Proj
ects
Her
o H
onda
Mot
ors
Ltd
.
121
Sudh
ir Ku
mar
Jai
swal
*41
Spec
ial D
irect
or -
Proj
ects
12.1
1.07
2207
239.
00B
.Sc.
(Eng
g.),
CFA
, MB
A18
Chie
f, Co
rp &
Pro
ject
Fin
ance
, Tat
a St
eel
122
Sund
aram
Par
thas
arat
hi55
Spec
ial D
irect
or -
Bus
ines
s Pl
anni
ng01
.10.
7848
4270
2.00
B.E
., M
.S.
29---
123
Sund
arar
ajan
M.S
.51
Dep
uty
Gen
eral
Man
ager
- Q
ualit
y En
gg.
25.0
7.80
2397
144.
50B
E27
---
124
Sund
arar
ajan
N.
58Ex
ecut
ive
Dire
ctor
05.0
6.96
9872
742.
45B
.Com
., AI
CWA,
FCS
, PG
DB
M36
Pres
iden
t, Su
ndar
am In
dust
ries
Ltd.
,
125
Sure
ndra
n J.
55D
eput
y G
ener
al M
anag
er -
Man
ufac
turin
g20
.06.
9624
0906
1.50
BE
30---
126
Sure
ndra
nath
M.
48D
eput
y G
ener
al M
anan
ger
- Te
chni
cal S
ervi
ces
14.1
0.84
2688
450.
50B
E, M
BA
23---
127
Suria
nara
yana
n V.
N.S
.58
Dep
uty
Gen
eral
Man
ager
- Co
rpor
ate
Qua
lity
Engg
.02
.02.
7933
1300
3.50
BE
35---
128
Swam
inat
han
R.
57D
eput
y G
ener
al M
anan
ger
- Cu
stom
er S
uppo
rt G
roup
01.1
1.75
2618
457.
75B
E, M
BA
32---
129
Thya
gara
jan
V.60
Cons
ulta
nt16
.03.
8121
7727
4.75
B.E
.38
Engi
neer
, The
Eng
lish
Elec
tric
Com
pany
of
Indi
a Lt
d.
130
Tiw
ari S
.D.
51D
eput
y G
ener
al M
anan
ger
- Pr
oduc
tion
& P
lant
Eng
g.27
.11.
8332
5441
8.00
BE
25---
131
Uda
yash
anke
r B
.M.
58Ex
ecut
ive
Dire
ctor
- M
anuf
actu
ring
01.0
7.74
1048
6048
.00
B.E
.37
---
132
Um
apat
hy K
.63
Dep
uty
Gen
eral
Man
ager
- Pr
oduc
t D
evel
opm
ent
05.1
0.78
3300
965.
75D
ME,
DB
M40
Engi
neer
- IE
D, E
nfiel
d In
dia
Ltd.
133
Um
esh
Chan
dra*
48Ch
ief E
xecu
tive
Offi
cer
- Ash
ley
Des
ign
& E
ngin
eerin
g Se
rvic
es06
.06.
0726
7232
1.00
BE,
MB
A, M
.Tec
h.21
Dire
ctor
- En
gg. S
ervi
ces,
Que
st E
ngg.
&
Softw
are
Tech
nolo
gies
(P)
Ltd
.
134
Upa
dhya
y D
.C.
58D
eput
y G
ener
al M
anag
er -
Sale
s02
.11.
8732
8035
6.75
B.S
c.(E
ngg)
, DB
M36
Asst
. Sal
es M
anag
er, A
ssoc
iate
d En
gg. I
nds.
Lt
d.
135
Ush
a So
man
Mrs
.54
Dep
uty
Gen
eral
Man
ager
- Tr
aini
ng09
.12.
9626
9997
4.75
B.S
c., M
BA
30Sr
. Exe
c. -
CHR
M, N
atio
nal D
airy
D
evel
opm
ent B
oard
136
Vara
dara
jan
V.51
Dep
uty
Gen
eral
Man
ager
- Sy
stem
s13
.11.
8132
4618
3.75
B.T
ECH
, PG
DB
M, A
MIE
, PG
DFM
, PG
DM
M, E
RP(
SAP)
, SM
S &
DD
S
26---
137
Vasu
deva
n N
.S.
60G
ener
al M
anag
er -
Proj
ects
19.0
8.81
4234
524.
75B
.Sc.
, DM
IT36
Seni
or E
ngin
eer,
Inte
rnat
iona
l Ins
trum
ents
Lt
d.
138
Venk
at S
ubra
man
iam
B.
46Sp
ecia
l Dire
ctor
- M
arke
ting
01.0
8.03
5434
501.
75B
.Tec
h. P
GD
BM
21G
M -
Sale
s, T
VS M
otor
Co.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 93 6/25/2008 7:27:32 PM
93
Sl.
No.
Nam
eA
geD
esig
natio
n D
ate
of
Com
men
cem
ent
of E
mpl
oym
ent
Rem
uner
atio
nR
ecei
ved
/R
ecei
vabl
eR
s.
Qua
lifica
tion
Tota
lExp
erie
nce
(Yea
rs)
Part
icul
ars
of P
revi
ous
Exp
erie
nce
139
Venk
atas
ubra
man
ian
S.H
. Dr.
46Se
ctio
n H
ead
- Adv
ance
d En
gine
erin
g 23
.06.
0431
0168
6.75
BE,
M.T
ech.
, Ph.
D19
Mec
hani
cal E
ngin
eer,
GE
Indi
a Te
ch C
entre
P.
Ltd
.
140
Venk
ates
h N
atar
ajan
45D
eput
y G
ener
al M
anag
er -
Syst
ems
15.0
3.00
3492
074.
75B
E, M
E (M
gt.)
, M.T
ech,
PG
D in
Co
mpu
ter
22ER
P Co
nsul
tant
, Con
tinen
tal I
nfor
mat
ion
141
Venk
ates
h S.
55
Spec
ial D
irect
or -
Prod
uct
Dev
elop
men
t02
.01.
0665
4136
3.75
B.E
. M.T
ech.
31H
ead
- Eng
g., T
ata
Mot
ors
142
Venk
atar
aman
S.
50D
eput
y G
ener
al M
anag
er -
Lega
l22
.11.
0429
2849
6.75
B.C
om.,
BL
24Sr
. Man
ager
- Le
gal,
Tata
Tel
eser
vice
s Lt
d.
143
Venk
atar
aman
i N.
57D
eput
y G
ener
al M
anag
er -
Proj
ects
30
.11.
7935
1478
0.75
BE
33Jr
. Exe
cutiv
e, D
alal
Con
sulta
nts
& E
ngin
eers
144
Venu
gopa
lan
R.
56D
eput
y G
ener
al M
anag
er -
Fina
nce,
Enn
ore
01.1
2.83
3240
448.
75B
.Com
, ACA
30Ac
coun
ts-c
um-A
dmn.
Offi
cer,
Gee
p In
dust
rial
Synd
icat
e Lt
d.
145
Vija
yaku
mar
Unn
i V.K
.54
Dep
uty
Gen
eral
Man
ager
- Pr
ojec
t Pl
anni
ng29
.03.
7927
2134
1.75
BE
32En
gine
er, A
CC V
icke
rs B
abco
ck L
td.
146
Vino
d K
. Das
ari
41Ch
ief O
pera
ting
Offi
cer
01.0
4.05
1543
0174
.00
BS
(Eng
g.),
ME,
MB
A (K
ello
g)19
JMD
, Cum
min
s In
dia
Ltd.
147
Visw
anat
han
C.V.
59As
sist
ant G
ener
al M
anag
er -
Logi
stic
s08
.05.
8126
5204
0.50
DAM
E33
---
148
Visw
anat
han
G.
54D
eput
y G
ener
al M
anag
er -
Prod
uct
Dev
elop
men
t26
.05.
7830
6362
7.75
BE,
MS
29---
*Par
t of
the
yea
r
1.
Gro
ss r
emun
erat
ion
sho
wn
abo
ve i
s s
ubje
ct t
o ta
x a
nd c
ompr
ises
Sal
arie
s, B
onus
, Al
low
ance
s, M
edic
al b
enefi
ts,
Leav
e Tr
avel
Ass
ista
nce
as a
pplic
able
in
acc
orda
nce
with
the
Com
pany
’s r
ules
, Co
mm
issi
on, C
ompa
ny’s
Con
tribu
tion
to P
rovi
dent
Fun
d a
nd S
uper
annu
atio
n F
und
and
per
quis
ites
eva
luat
ed a
s p
er I
ncom
e-Ta
x ru
les.
In
addi
tion
to th
e ab
ove,
the
em
ploy
ees
are
ent
itled
to
G
ratu
ity.
2.
All
appo
intm
ents
are
con
tract
ual.
3.
Non
e o
f th
e e
mpl
oyee
s is
a r
elat
ive
of
any
Dire
ctor
of
the
Com
pany
.4.
Th
e a
bove
lis
t do
es n
ot i
nclu
de e
mpl
oyee
s on
dep
utat
ion.
ASHOKLeyland_082-895_AR2K7-8_Ord_2 col.indd 94 6/25/2008 7:27:32 PM
94