History of the company corporate governance Directors Chairman speech Press releases about the company Products

History of Ashok Leyland

Following the independence of India, Pandit Jawaharlal Nehru, Indias first Prime Minister, persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive manufacture. The company began in 1948 as Ashok Motors, to assemble Austin cars. The company was renamed and started manufacturing commercial vehicles in 1955 with equity participation by British Leyland. Today the company is the flagship of the Hinduja Group, a British-based and Indian originated transnational conglomerate. Early products included the Leyland Comet bus which was a passenger body built on a truck chassis, sold in large numbers to many operators, including Hyderabad Road Transport, Ahmadabad Municipality, Travancore State Transport, Bombay State Transport and Delhi Road Transport Authority. By 1963, the Comet was operated by every State Transport Undertaking in India, and over 8,000 were in service. The Comet was soon joined in production by a version of the Leyland Tiger. In 1968, production of the Leyland Titan ceased in Britain, but was restarted by Ashok Leyland in India. The Titan PD3 chassis was modified and a five speed heavy duty constant-mesh gearbox utilized, together with the Ashok Leyland version of the O.680 engine. The Ashok Leyland Titan was very successful, and continued in production for many years.

Over the years, Ashok Leyland vehicles have built a reputation for reliability and ruggedness. This was mainly due to the product design legacy carried over from British Leyland. Ashok Leyland had collaboration with the Japanese company Hino Motors from whom the technology for the H-series engines was bought. Many indigenous versions of H-series engine were developed with 4 and 6 cylinder and also conforming to BS2 and BS3 emission norms in India. These engines proved to be extremely popular with the customers primarily for their excellent fuel efficiency. Most current models of Ashok Leyland come with H-series engines.

An Ashok Leyland bus run by the Chennai Metropolitan Transport Corporation In 1987, the overseas holding by Land Rover Leyland International Holdings Limited (LRLIH) was taken over by a joint venture between the Hinduja Group, the Non-Resident Indian transnational group and IVECO Fiat SpA, part of the Fiat Group and Europe's leading truck manufacturer. Ashok Leylands long-term plan to become a global player by benchmarking global standards of technology and quality was soon firmed up. Access to international technology and a US$200 million investment programmed created a state-of-the-art manufacturing base to roll out international class products. This resulted in Ashok Leyland launching the 'Cargo' range of trucks based
3

on European Ford Cargo trucks. These vehicles used Iveco engines and for the first time had factory-fitted cabs. Though the Cargo trucks are no longer in production and the use of Iveco engine was discontinued, the cab continues to be used on the 'ecomet' range of trucks. In the journey towards global standards of quality, Ashok Leyland reached a major milestone in 1993 when it became the first in India's automobile history to win theISO 9002 certification. The more comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998 and ISO 14001 certification for all vehicle manufacturing units in 2002. In 2006, Ashok Leyland became the first automobile company in India to receive the TS16949 Corporate Certification. Editors note: This is part of a series of articles peeking into clean car industries and car manufacturers of China, India, South Korea and Germany. Among many other goals, Ashok Leyland aims to expand its operations to penetrate into overseas markets. Included in the companys plans is to acquire smaller car manufacturers in China and in other developing countries. In October 2006, Ashok Leyland bought a majority stake in the Czech based- Avia. Called Avia Ashok Leyland Motors s.r.o., this will give Ashok Leyland a channel into the competitive European market. According to the company, in 2008 the joint venture sold 518 LCVs in Europe despite tough economic conditions. Furthermore, the company will expand its product offers into construction equipment, following a joint venture with John Deere. Newly formed in June 2009, the John Deere partnership is a 50/50 split between the companies. The company says negotiation is progressing on land acquisition, and the production plans are in place. The venture is scheduled to start rolling
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out wheel loaders and backhoe loaders in October 2010. Aside from the full expansion planned for the company, Ashok Leyland is also paying close attention to the environment. In fact, they are one of the companies showing the strongest commitment to environmental protection, utilizing eco-friendly processes in their various plants. Even as they thrust into different directions, Ashok Leyland maintains an R&D group that aims to uncover ways to make their vehicles more fuel efficient and reduce emissions. In fact, even before laws were placed on car emissions, Ashok Leyland was already producing low-emission vehicles. Back in 1997, they have already released buses with quiet engines and low pollutant emission based on the CNG technology. In 2002 it developed the first hybrid electric vehicle. Ashok Leyland has also launched a mobile emission clinic that operates on highways and at entry points to New Delhi. The clinic checks vehicles for emission levels, recommends remedies and offers tips on maintenance and care. This work will help generate valuable data and garner insight that will guide further development. When it comes to the development of environmentally friendly technologies, Ashok Leyland has developed Hythane engines. In association with the Australian company Eden Energy, Ashok Leyland successfully developed a 6-cylinder, 6-liter 92 kW BS-4 engine which uses Hythane (H-CNG,) which is a blend of natural gas and around 20% of hydrogen. Hydrogen helps improve the efficiency of the engine but the CNG aspect makes sure that emissions are at a controlled level. A 4-cylinder 4-litre 63 KW engine is also being developed for H-CNG

blend in a joint R&D program with MNRE (Ministry of New and Renewable Energy) and Indian Oil Corporation. The H-CNG concept is now in full swing, with more than 5,500 of the technologys vehicles running around Delhi. The company is also already discussing the wide-scale use of Hythane engines with the Indian government. Hythane engines may be expected in the near future, but these may not be brought to the United States as yet. Ashok Leylands partnership with Nissan is also focusing on vehicle, powertrain, and technology development listed under three joint ventures. With impressive investment, the joint ventures will focus on producing trucks with diesel engines that meet Euro 3 and Euro 4 emission standards. In the coming years, Ashok Leyland also has some hybrid trucks and buses in store for its market. The buses and trucks are set to feature a new electronic shift-by-wire transmission technology as well as electronic-controlled engine management for greater fuel efficiency. Ashok Leyland focuses on improving fuel efficiency without affecting automotive power and the vehicles will have a 5% improvement on fuel efficiency. Ashok Leyland is also developing electric batteries and biofuel modes. Ashok Leyland Ltds March quarter results were expected to be impressive, as its monthly vehicle output reports had indicated a 138% jump in volumes. But what impressed was its net profit growth of 317%, to Rs223 crore, over the year-ago period, even as sales rose by 139%. Ashok Leylands operating profit margin rose to 13% compared
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with 10.5%. Higher volume growth, a better product mix due to higher sales of multi-axle vehicles and tractor trailers, and cost reduction were key reasons for margin expansion. Its estimate for volume growth in 2011 is conservative, at 15% compared with over 30% in FY2010. Around 1,200 buses under the Jawaharlal Nehru National Urban Renewal Mission scheme are yet to be delivered of the 5,098 ordered. Besides, it has orders on hand from state transport undertakings for another 2,000 buses. The firm is investing to increase its capacity, with Rs1,200 crore proposed for expansion plans over the next two years; mainly to increase output of engines and new generation cabs. Besides, it plans to invest Rs800 crore in joint ventures. Analysts believe that its Uttarakhand plant is expected to deliver 22,000-25,000 vehicles in fiscal 2011, in its first full year of operation. The company has also steadily gained market share, from 21-22% in the first quarter of 2010 to 2829% in the fourth quarter. One concern is that it is not yet a strong player in the eastern market. Besides, the southern market, traditionally its stronghold, has grown by only 15% in volume terms in 2010. The rest of India (mainly north and west) grew by 40% during the year. An Ashok Leyland-Nissan joint venture produced light commercial vehicles (LCVs) from the former's House facility near Bangalore as well as from Renault-Nissan's car plant near Chennai.

REPORT ON CORPORATE GOVERNANCE Annual Report 2010-11

The Remuneration Policy of the Company is summarized as follows: The remuneration is governed by the external competitive environment, track record, potential, individual performance, Companys performance and industry standards. Remuneration is subject to the approval of the Board of Directors and shareholders. i) For the Managing Director and for the Managing Director (Designate) The total remuneration consists of: a fixed component consisting of salary, allowances (including Special Allowance) and perquisites; the perquisites and benefits are in line with the Companys Rules for senior managerial Personnel. A variable component linked to the performance Of the Company as well as that of the Managing Director or the Managing Director (Designate), as The case may be consisting of Commission as Determined by the Remuneration Committee. No sitting fee is payable ii) For Non-executive Directors
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Sitting Fee of Rs.20,000/- was paid to each of the Non-executive Directors for attending the meetings Of the Board or Committee thereof. All Directors Are also reimbursed actual travel costs and Incidental expenses incurred for attending such Meetings or in connection with the Companys Business. There are no pecuniary relationship or Transactions between any of the Non-executive Directors and the Company. No other remuneration was paid to Non-executive Directors other than the above. d) The details of remuneration paid/payable to the Directors for the year 2010-11 are: i) Non-executive Directors - Sitting Fees: (excluding reimbursement of travel and other expenses incurred for the Companys business). Annexure-B to Directors Report REPORT ON CORPORATE GOVERNANCE Rs. Rs. Mr R J shahaney 2,20,000 Mr f sahami 1,80,000 Mr dheeraj G Hinduja 2,60,000 Mr sanjay K Asher 80,000 Mr Anil Harish 2,40,000 Mr shardul s shroff nil Mr d J Balaji Rao 3,40,000 dr V sumantran 2,20,000 Mr A K das 1,40,000 Mr Anders spare 1,20,000 Mr Jean Brunol 40,000 Mr prabal Banerjee 20,000 Mr Ramachandran R Nair (**) 60,000

(**) Amount paid to Lick of India by means of cheque30 Ashok Leyland Limited 5. Shareholders/Investors Grievance Committee a) The Shareholders/Investors Grievance Committee was constituted in 2000. The Committee consists of Mr Sanjay K Asher, an Independent Director as Chairman (Mr R J Shahaney was the Chairman up to 20/10/2010), Mr D J Balaji Rao, an Independent Director as a member and Mr R Seshasayee, Executive Vice Chairman as a member. b) The Committee approves issue of new share certificates and looks into investor complaints/ grievances on a periodical basis. c) The Committee also reviews the performance of the Companys 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/ Ministry of Corporate Affairs etc., and the responses thereto are reviewed by this Committee. d) Based on the delegated powers of the Board of Directors, the Managing Director/Managing Director(Designate) approved the share transfers/ transmissions on a fortnightly basis and the same reported to at the next meeting of the Committee,
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normally held every quarter. e) Mr A R Chandrasekharan, Executive Director and Company Secretary is the Secretary to the Committee and is also the Compliance Officer appointed for the compliance of capital market related laws. f) Meetings and Attendance during the year 2010-11: April 29, 2010 July 27, 2010 October 20, 2010 January 22, 2011 3 3 3 3

During the year, 2459 complaint/correspondence letters were received from investors (including 23 letters from SEBI / Stock Exchanges/ MCA); 1983 Annexure-B to Directors Report

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Directors

Mr. Dheeraj Gopichand Hinduja

Mr. Anil Harish

Mr. D. J. Balaji Rao

Mr. A. K. Das

Mr. Jean Brunol

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Mr. Jorma Antero Halonen

Mr. Sanjay K. Asher

Mr. F. Sahami

Mr. Shardul S. Shroff

Mr. R. Seshasayee

Mr. Vinod K. Dasari

Dr. V. Sumantran
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Board committee AUDIT COMMITTEE

Mr. Anil Harish, Chairman Mr. D.J. Balaji Rao Mr. F. Sahami Mr. Sanjay K. Asher Mr. Sanjay K. Asher (Chairman) Mr. D. J. Balaji Rao Mr. R. Seshasayee Mr. D. J. Balaji Rao (Chairman) Mr. Dheeraj G. Hinduja Mr. Anil Harish Mr. A. K. Das

SHAREHOLDERS/INVESTORS GRIEVANCE COMMITTEE

NOMINATION AND COMPENSATION COMMITTEE

Mr. A. R. Chandrasekharan is the Secretary for all the Committees.

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Chairman speech
You will be pleased to note that 2010-11 was another successful year for Ashok Leyland. Taking advantage of a buoyant domestic market and recovering traditional export markets, Your Company has set a new watermark by selling 94,106 commercial vehicles, the highest ever in its history, registering an increase of 47% over the previous year. The domestic commercial vehicle volume grew in 2010-11 by 27% within which Ashok Leyland present core medium and heavy segment was up by 32%. In the medium and heavy segment, you will be happy to know that your Company has been able to maintain its leadership position in the bus segment and register share increase in every truck segment. The export volume has surged by 72% over the previous year to 10,306 vehicles with footprints in some new markets. The sales turnover has increased to Rs 11,117.71 Crores (+53.5% YOY) and Net Profit to Rs 631.30 Crores (+49% YOY). There have also been significant gains in the Spare Parts, Defense and Power Solutions businesses. On your behalf, I would like to record my appreciation for the creditable performance from the Ashok Leyland team during the year that went by. Looking in Retrospect

As you are probably aware, your Company is taking strides to realize the Vision of becoming global. In that journey, in addition to the
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strengthening of the position in the Indian market, last year witnessed some significant developments, which I would like to highlight. Your Company acquired a 26% controlling stake in Optare pic, U.K. a reputed bus manufacturer with a proven experience in hybrid and electric vehicles. They manufacture a range of urban buses with integral architecture including the iconic Solo midi Bus range. The acquisition will further strengthen the leadership position of your Company in the domestic market and is also expected to open up new frontiers in the developed markets. In the medium and heavy truck segment, as you are aware, your Company has introduced the versatile future ready - U-truck that will cover the 16-49 Tonne GVW/GCW range and the initial feedback from the market has been very encouraging. Further range extension would follow progressively. To build on the platform as the largest supplier of logistics vehicles to the Indian Army and leverage on the overseas opportunities in the segment, your Company has promoted a new entity Ashok Leyland Defense Systems. To extend the product line-up to include tactical vehicles and develop other advanced defense systems, a MoU has been signed with the renowned Krauss-Maffei Wegmann (KMW) of Germany. On the export front, forays have been made into Russia, Ukraine and Mozambique which are new market extensions.
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Registering the highest ever R&D spend in a year of Rs 312.62 Crores, Your Company has widened the fully built offerings in bus and truck and has undertaken focused efforts across the range to further improve product performance, fuel efficiency and durability, the hallmarks of Ashok Leyland products. I am also happy to share with you that Hinduja Leyland Finance, which finances vehicle purchase, has grown significantly during the year. Ramping up quickly, in its second year of operations it has disbursed over Rs 1200 Crores, Operating from 420 locations in 20 States with nearly 700 employees, Hinduja Leyland Finance provides solid support to your Companys growth in volumes. You are aware of the enlarging profile of Ashok Leyland that includes an equal JV with John Deere, U.S.A, for construction equipment, a growing Power Solutions Business, an end-to-end Engineering Services & Business Consultancy and a high technology emissions solutions company based in Germany. Some of these initiatives are aimed at derisking against cyclically in the bus and truck business and some opportunistic. Looking into the future Building on the strengths of extending product line- up, growing sales volume and product engineering capability, as the next logical step, your Company has charted out an aggressive plan of volume growth to
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be among the Global Top 10 players in trucks in the category of 7.5 Tonne GVW and above and Top 5 in buses in the category of 8m and above, within the next 5 years. The well-developed R&D infrastructure now has over 1000 engineering professionals and is still growing. Apart from maintaining the thrust to develop and position conventional products and options to global standards, your Companys R&D has clear road maps for alternate propulsion and advanced engineering activities also. Contemporary cabins developed in-house and the globally

benchmarked, best-in-class Neptune engines for the intermediate, medium and heavy truck range will enable progressive launch of a slew of products that can compete well in the global markets. In the growing intermediate vehicle range, action is already on hand to renew the current Ecomet models with a major upgrade aimed at both domestic and overseas markets. Market extensions are being vigorously pursued. Breakthroughs are expected soon in South Africa, Middle East, Russia, CIS, Latin America and some growing markets in the Far East. To address the evolving trends in freight transportation in the country, your Companys truck range gets further reinforced with the LCV range (3-6 Tonne GVW) through the equal JV with Nissan Motors. I am happy to inform that the first of the series under this co-operation, unveiled as Ashok Leyland DOST is planned for launch this year in the
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3 Tonne truck category. This would be followed by the 6 Tonne range and subsequently by an award-winning passenger minivan. 2011-12 should also see the launch of the backhoe, first of the construction equipment range from the JV with John Deere. In parallel to the product-market initiatives, there is emphasis on creating a vibrant organization commensurate with the challenges ahead. To steer your Company through this crucial period, Mr. R Seshasayee has been elevated by the Board to the position of Executive Vice Chairman and Mr. Vinod Dasari as the Managing Director. I would like to congratulate them both and wish them every success. In this context, I wish to record my deepest respect and regard for the invaluable contribution and exemplary professionalism of Mr. R J Shahaney who has stepped down as Chairman since the last Annual General Meeting. To recognize his invaluable contribution to your Company over the last 32 years and to continue to benefit from his extensive experience and wisdom, the Board has conferred on him the status of Chairman Emeritus. Please join me in wishing Mr. Shahaney good health and happiness in the future. I gratefully acknowledge the confidence and faith reposed by the shareholders on the Board and the Management team which has, in my view, spurred the Company to take on more challenges. I have great pleasure in announcing that taking into account the performance and prospects, the Board has recommended issuance of bonus shares in the
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ratio of 1:1. I am aware that you have been waiting for a bonus issue for some time now and I must thank you for your patience. Finally, I must applaud the tireless efforts, dedication and commitment of our employees who have helped us reach where we are now and look forward to the benefit and comfort of their association in the journey forward. On behalf of your Company, I sincerely appreciate the loyalty and support of the extended family of dealers and countless customers as we re-dedicate ourselves to serve them better. Looking forward to your continuing support,

Yours sincerely, Dheeraj G Hinduja Chairman, Ashok Leyland Limited Dated: June 16, 2011

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Press releases about the company

Net profit up 54% EBITDA also up 27% Hinduja Group flagship, Ashok Leyland has reported a 29% increase in its revenue for the third quarter of the current fiscal at Rs. 2,880 crores as against Rs. 2,227 crores for the corresponding quarter of 2010-11. Net profit for the quarter was up by 54% at Rs. 67 crores (Rs. 43 crores). EBITDA was up 27%. Sales volume for the quarter witnessed a healthy increase of 26% at 23,175 nos. (18,437 nos.). Employee Cost rose by 12% at Rs. 272 crores (Rs. 244 crores) on the back of bonus payouts in the quarter. Other Expenditure increased by 42% at Rs. 268 crores as against Rs. 189 crores for the corresponding quarter of the previous fiscal as also did Financial Expenses, up by 16% at Rs. 55 crores (Rs. 47 crores) due to increase in working capital and higher interest costs on CAPEX loans. Production volume for the quarter improved by 25% at 24,153 nos. (19,291 nos). For the nine months ended December 2011, sales revenue was higher by 16% at Rs. 8,470 crores (Rs. 7,289 crores). Net profit was, however, down 7.8% at Rs. 307 crores (Rs 333 crores).

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"Despite a substantial improvement in our quarter sales and profits, Q3 was a challenging one due to a few supply chain issues," said Mr. Vinod K. Dasari, Managing Director, Ashok Leyland. "These have since been resolved. STU demand was weaker in Q3 but is expected to bounce back in Q4. The initial feedback from customers for DOST have been very favorable and we are quickly ramping up production to meet the demand," added Mr. Dasari.

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Applications: Tarmac Coach Engine: H Series 4 cylinder BS3 Maximum Power: 120 hp (88 kW) @ 2400 rpm Maximum Torque: 400 nm (41 mkg) @ 1600 rpm Gearbox:
Automatic transmission

Rear Axle: Fully floating, hypoid gear Front Suspension: Air suspension Rear Suspension: Air suspension Steering: Integral Power steering Brakes: Full air brakes Wheelbase: 5100 mm Overall Length: 11000 mm Tyres: 10R20 - 16 PR GVW: 13000 kg Floor height: 380 mm stepless entry

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Applications:

City bus - 42 seats BRTS one / two door(s) - ahead of

front axle / rear overhang

Engine: "H" Series - 6 CYL. CNG BS4 Maximum Power:124 hp (92 kW) @ 2400 rpm Maximum Torque:
42.8 mkg (416 nm) @ 1200 rpm

Gearbox: 5 Speed Synchromesh Clutch: 353 mm dia single plate dry type Rear Axle: Fully floating, single reduction hypoid axle Front Suspension: Rubber ended suspension Rear Suspension: air suspension Steering: Integral Power steering Brakes: Full air brakes Wheelbase: 5639 mm Overall Length: 10931 mm Tyres: 10R20 - 16 PR GVW: 16200 kg
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Seats:

42

Applications: Voluminous
transportation

material movement at ports & Surface

Engine: H Series HA57L165 CRS - BS3 turbocharged intercooled Power: 225 hp @ 2500 rpm Torque: 800 nm @ 1400-1900 rpm Clutch: Axial
clutch booster type 381 mm dia with organic lining and actuated by

Transmission: 9 speed GB - First Gear Ratio (FGR) - 8.83:1, Crawler

Gear Ratio (CGR) - 12.73:1

Suspension: Heavy duty bogie in rear Cabin: Factory built G91 day cab with sleeping provision; a/c option Tyre: 11.00 x 20 - 16 PR nylon ply Max speed: 82 kmph Grade ability: 33% GVW: 31000 kgs
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Wheelbase:

5250 mm 19 cum box 22 cum box

Body Capacity:

Applications: Construction, roadwork, coal Engine: H Series HA6ETI3K BS3 turbocharged intercooled Power: 160 hp @ 2400 rpm Torque: 550 nm @ 1500 -1700 rpm Clutch: Axial
actuation type 352 mm dia with organic lining and mechanical

Transmission: 6 speed OD GB - First Gear Ratio (FGR) - 8.28:1 Suspension: Semi Elliptical multileaf Cabin: G45 FES and cabin Tyre: 10.00 x 20 - 16 PR nylon - ply Max speed: 96 kmph Grade ability: 27% GVW: 16200 kgs Variants: 1616 1616 XL
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Wheelbase: 2920 3607 Body Capacity: 4.5 cum Box UBT & 6.5 cum box UBT&FET
6 cum box UBT , 8.5 cum box UBT & FET, 10.5 cum Box FET, 8.5 cum

scow FET and 7.5 cum rock UBT

Applications: Market load, construction, cement, Tankers Engine: HA135LT3 Power: 180 hp @ 2400 rpm Torque: 550 nm @ 1500 - 2100 rpm Clutch: 15" facing dia clutch with superior lining material & booster Transmission: ZF S6 36 FGR 8.51 Suspension: Semi elliptical laminated multileaf Cabin: Factory built G45 Cowl Tyre: 10.00 x 20 - 16 PR Nylon - radial option available
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Max speed: 76 kmph Grade ability: 15.03% GVW: 31000 kgs Wheelbase: 5200 mm Loading span: 24.5 feet

Applications: Cement, Steel, ODC Engine: H Series CRS BS III Power: 225 hp @ 2500 rpm Torque: 800 nm @ 1400-1900 rpm Clutch: 380
boosters mm dia disc with organic lining actuated with clutch

Transmission: 9 speed synchromesh GB (ZF9S1110); First Gear Ratio

8.83:1, Crawler Gear Ratio 12.73:1
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Front : Parabolic suspension Rear : Semi elliptic multileaf; bogie option Cabin: Factory built G91 sleeper cab Tyre: 11.00 x 20 - 16 PR cross ply; radial tyres optional Max speed: 80 kmph Grade ability: 21% GVW: 49000 kgs (with tri-axle trailer) Wheelbase: 3900 mm

RATIO ANALYSIS
GROSS PROFIT NET PROFIT RETURN ON NET WORTH FIXED ASSET TURNOVER RATIO CURRENT RATIO LIQUIDITY RATIO INVENTORY TURNOVER RATIO DEBTORS TURNOVER RATIO DIVIDEND PAYOUT RATIO EARNING PER SHARE
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GROSS PROFIT

Definition of gross profit ratio:

Gross profit ratio (GP ratio) is the ratio of gross profit to net sales expressed as a percentage. between gross profit and sales. It expresses the relationship

Formula:
Following formula is used to calculate gross profit ratios: [Gross Profit Ratio = (Gross profit / Net sales) 100]

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Significance:
Gross profit ratio may be indicated to what extent the selling prices of goods per unit may be reduced without incurring losses on operations. It reflects efficiency with which a firm produces its products. As the gross profit is found by deducting cost of goods sold from net sales, higher the gross profit better it is. YEAR GROSS PROFIT SALES GROSS PROFIT RATIO 2007
773.49 7358.88 10.51

2008
877.99 7972.52 11.01

2009
519.05 6168.99 8.41

2010
833.29 7436.18 11.20

2011
1232.89 11407.15 10.80

GROSS PROFIT
2011 10.8 5 4 3 2 1 1995

2010 2009 2008 10.51 2000 2007 2005 YEAR 2010 GROSS PROFIT 8.41 11.01

2015

11.2 2020 2025

Interpretation
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In the year 2007 gross profit ratio was 10.51. It was increased in 2008 11.01 .But in 2009 gross profit ratio was decreased 8.41 and it was lower in comparing with last five year. 2010 ratio is increased with 2.79%. But in 2011 ratio was decreased with 0.4%. In 2011 sale is higher even gross profit.

NET PROFIT RATIO

Definition of net profit ratio:

Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed as percentage.

Formula:
Net Profit Ratio = (Net profit / Net sales) 100

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Significance:
NP ratio is used to measure the overall profitability and hence it is very useful to proprietors. The ratio is very useful as if the net profit is not sufficient, the firm shall not be able to achieve a satisfactory return on its investment. Higher the ratio the better is the profitability. But while interpreting the ratio it should be kept in minds that the performance of profits also is seen in relation to investments or capital of the firm and not only in relation to sales.

YEAR NET PROFIT NET SALES NET PROFIT RATIO

2007
441.29 7358.88

2008
469.31 7972.52

2009
190.00 6168.99

2010
423.68 7436.18

2011
631.30 11407.15

5.99

5.88

3.07

5.69

5.53

NET PROFIT
2012 2011 2010 2009 2008 2007 2006 2005 1 2 3 4 5 6 7 6 5 4 3 2 YEAR NET PROFIT

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1 0

Interpretation
In 2007 net profit ratio is 5.99 and 2008 ratio is decreased with 0.10%. 2009 ratio is decreased with 2.81% comparing with 2008. But 2010 ratio is increased up to 2.62%. 2011 ratio is decreased 5.53

Return on Shareholders Investment or Net worth Ratio:

Definition:
It is the ratio of net profit to share holder's investment. It is the relationship between net profit (after interest and tax) and share holder's/proprietor's fund.

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This ratio establishes the profitability from the share holders' point of view. The ratio is generally calculated in percentage.

Formula of return on shareholder's investment or net worth Ratio:

[Return on share holder's investment = {Net profit (after interest and tax / Share holder's fund}

Significance:
This ratio is one of the most important ratios used for measuring the overall efficiency of a firm. As the primary objective of business is to maximize its earnings, this ratio indicates the extent to which this primary objective of businesses being achieved. This ratio is of great importance to the present and prospective shareholders as well as the management of the company. As the ratio reveals how well the resources of the firm are being used, higher the ratio, better are the results. The inter firm comparison of this ratio determines whether the investments in the firm are attractive or not as the investors would like to invest only where the return is higher. year Net profit Share holders Return2016net worth on
2014 2012 2010 2008 2006 2004 2002 1 2 3 3.52 3.33 1.42 3.18 net worth year

2007 2008 2009 Return 469.31 441.29 on Net worth 190.00 132.39 133.03 133.03 3.33 3.52 1.42
4.74

2010 423.67 133.03 3.18

2011 631.30 133.03 4.74

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4 5

Interpretation
In year 2007 net on net worth ratio is 3.33. But in 2008 ratio increased is 3.52 and 2009 ratio is decreased 1.42 because net profit is decreased. 2010 ratio increased 3.18 comparing with 2009. Net profit is increased in 2011 and ratio was 4.74 comparing with last five year.

Fixed Assets Turnover Ratio:

Definition: Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the concern.
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Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio means under-utilization of fixed assets. The ratio is calculated by using following formula: Formula of Fixed Assets Turnover Ratio: Fixed assets turnover ratio turnover ratio is calculated by the following formula: Fixed Assets Turnover Ratio = Cost of Sales / Net Fixed Assets

Year Cost of sales Net fixed assets FATO ratio

2007 7358.88 1307.04 5.63

2008 7972.52 1525.5 5 5.22

2009 6168.99 3399.11 1.81

2010 7436.18 4249.56 1.74

2011 11407.15 4633.79 2.46

Fixed assets turnover ratio

7 5 3 1 -1 year Fato ratio

1 2007 5.63

2 2008 5.22

3 2009 1.81

4 2010 1.74

5 2011 2.46

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Interpretation
Fixed asset turnover ratio of 2007 is 5.63 but in 2008 & 2009 ratio is deceased from 5.22 to 1.81. 2010 ratio is deceased 1.74 this lower ratio comparing to last five year.

CURRENT RATIO Definition:

Current ratio may be defined as the relationship between current assets and current liabilities. This ratio is also known as "working capital ratio". It is a measure of general liquidity and is most widely used to make the analysis for short term financial position or liquidity of a firm. It is calculated by dividing the total of the current assets by total of the current liabilities.
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Formula:
Following formula is used to calculate current ratio: Current Ratio = Current Assets / Current Liabilities Or

Current Assets: Current Liabilities

Significance:
A relatively high current ratio is an indication that the firm is liquid and has the ability to pay its current obligations in time and when they become due. On the other hand, a relatively low current ratio represents that the liquidity position of the firm is not good and the firm shall not be able to pay its current liabilities in time without facing difficulties.

YEAR CURRENT ASSET CURRENT LIABILITES CURRENT RATIO

2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

2007 1681.75 1865.97

2008 2009 1644.30 2374.91 2196.49 2207.29 1.07

2010 2849.22 3002.68 0.94

2011 3573.64 3505.26 1.01

ratio 0.90current 0.74

year current ratio

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1 2 3 4 5

Interpretation
The rule of thumb of current ratio is 2:1 the ratio and here it shows a fluctuating. In year 2007 ratio was 0.90 it not good. After 2007 ratio was going on deceased 0.74 in 2008. But 2009 ratio is increased up to 1.07. In 2010 ratio again decreased because of current liabilities but 2011 ratio is increased up to 1.01.

Liquid or Liquidity or Acid Test or Quick Ratio:

Definition:
Liquid ratio is also termed as "Liquidity Ratio",Acid Test Ratio" or "Quick Ratio". It is the ratio of liquid assets to current liabilities. The true liquidity refers to the ability of a firm to pay its short term obligations as and when they become due.
40

Formula of Liquidity Ratio / Acid Test Ratio:

[Liquid Ratio = Liquid Assets / Current Liabilities]

Significance:
The quick ratio/acid test ratio is very useful in measuring the liquidity position of a firm. It measures the firm's capacity to pay off current obligations immediately and is more rigorous test of liquidity than the current ratio. It is used as a complementary ratio to the current ratio. Liquid ratio is more rigorous test of liquidity than the current ratio because it eliminates inventories and prepaid expenses as a part of current assets. Usually high liquid ratios and indication that the firm is liquid and has the ability to meet its current or liquid liabilities in time and on the other hand a low liquidity ratio represents that the firm's liquidity position is not good. As a convention, generally, a quick ratio of "one to one" (1:1) is considered to be satisfactory.

YEAR QUICK ASSET CURRENT LIABILITIES Liquid 2 RATIO 1.8 1.6

1.4 1.2 1 0.8 0.6 0.4 0.2 0 1

2007 611.43 1865.97 0.32

2008 420.39

2009 1044.9

2010 1210.98 3002.68 0.40

2011 1364.74 3505.26 0.38

2196.49 RATIO LIQUIDITY 2207.29 0.19 0.47

41
2 3 4 5 6

Interpretation
According to rule ratio must be high it indicate that firm or company is in good position. But in 2007 ratio was not good because ratio is low last five year ratio going on decreased. In 2009 ratio is increased up to 0.47 this is highest ratio comparing to five year

Inventory Turnover Ratio or Stock Turnover Ratio (ITR):

Every firm has to maintain a certain level of inventory of finished goods so as to be able to meet the requirements of the business. But the level of inventory should neither be too high nor too low.
42

A too high inventory means higher carrying costs and higher risk of stocks becoming obsolete whereas too low inventory may mean the loss of business opportunities. It is very essential to keep sufficient stock in business. Definition:

Stock turn over ratio and inventory turn over ratio are the same. This ratio is a relationship between the cost of goods sold during a particular period of time and the cost of average inventory during a particular period. It is expressed in number of times. Stock turn over ratio/Inventory turn over ratio indicates the number of time the stock has been turned over during the period and evaluates the efficiency with which a firm is able to manage its inventory. This ratio indicates whether investment in stock is within proper limit or not. .

Formula of Stock Turnover/Inventory Turnover Ratio:

The ratio is calculated by dividing the cost of goods sold by the amount of average stock at cost.

(a) [Inventory Turnover Ratio = Cost of goods sold / Average inventory at cost]
43

(b) [Inventory Turnover Ratio = Net Sales / Average Inventory at Cost] (c) [Inventory Turnover Ratio = Net Sales / Average inventory at Selling Price] (d) [Inventory Turnover Ratio = Net Sales / Inventory]

Significance of ITR: Inventory turnover ratio measures the velocity of conversion of stock into sales. Usually a high inventory turnover/stock velocity indicates efficient management of inventory because more frequently the stocks are sold; the lesser amount of money is required to finance the inventory. A low inventory turnover ratio indicates an inefficient management of inventory.

44

Year Cost of good sold

2007

2008

2009

2010

2011

6585.39 7094.53 5649.94 6602.89 10174.26

Average inventory 1070.32 1223.91 1330.01 1638.24 2208.90 Inventory turn over ratio 6.15 5.76 4.24 4.03 4.60

Inventory turn over ratio

6 5 4 3 2 1

4.6 4.03 4.24 5.79 6.15

2011 2010 2009 2008 2007 intor year

Interpretation
Inventory turn over ratio of 2007 is higher it show that company is in good position. But after 2007 ratio is decreased 2008 & 2009 ratio is 5.76 & 4.24 in 2010 ratio is low comparing to last five year because if average inventory. Last year ratio is higher.

45

Debtors Turnover Ratio /Accounts Receivable Turnover Ratio:

A concern may sell goods on cash as well as on credit. Credit is one of the important elements of sales promotion. The volume of sales can be increased by following a liberal credit policy.

Definition:
Debtors turnover ratio or accounts receivable turnover ratio indicates the velocity of debt collection of a firm. In simple words it indicates the number of times average debtors (receivable) are turned over during a year.

Formula of Debtors Turnover Ratio:

Debtors Turnover Ratio = Net Credit Sales / Average Trade Debtors

Significance of the Ratio:

Accounts receivable turnover ratio or debtors turnover ratio indicates the number of times the debtors are turned over a year. The higher the value of debtors turnover the more efficient is the management of debtors or more liquid the debtors are. Similarly, low debtors turnover ratio implies inefficient management of debtors or less liquid debtors. It is the reliable measure of the time of cash flow from credit sales. There is no rule of thumb which may be used as a norm to interpret the ratio as it may be different from firm to firm.

46

year Net credit sales Average trade debtors Debtors turn over ratio

2007 8513.93 522.88 16.28

2008 9178.82 375.84 24.42

2009 6826.96 957.97 7.12

2010 8071.74 1022.06 7.89

2011 12393.36 1185.21 10.4

Debtors turn over ratio

30 25 20 15 10 5 0 1 2 3 4 5 drstor year year drstor

Interpretation
In 2007the ratio was 16.28 time and it increased to 24.42 in 2008. But in 2009 ratio decreased to 7.12 and 2010 slightly increased up to 7.89 in 2011 ratio is increased 10.4 times this highest comparing to last two years 2009&2010. It implies in efficient management of the company in reducing its sales and increasing the net credit sales.
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Dividend Payout Ratio:

Dividend payout ratio is calculated to find the extent to which earnings per share have been used for paying dividend and to know what portion of earnings has been retained in the business. It is an important ratio because plaguing back of profits enables a company to grow and pay more dividends in future.

Formula of Dividend Payout Ratio:

Following formula is used for the calculation of dividend payout ratio Dividend Payout Ratio = Dividend per Equity Share / Earnings per Share A complementary of this ratio is retained earnings ratio. Retained earning ratio is calculated by using the following formula: Retained Earning Ratio = Retained Earning Per Equity Share / Earning Per Equity Share

Significance of the Ratio:

The payout ratio and the retained earning ratio are the indicators of the amount of earnings that have been ploughed back in the business. The lower the payout ratio, the higher will be the amount of earnings ploughed back in the business and vice versa. A lower

48

payout ratio or higher retained earnings ratio means a stronger financial position of the company

year Dividend EPS Dividend pay out ratio

2007 150 5.09 29.4

2008 150 6.24 24.0

2009 110 5.20 19.23

2010 150 6.81 22.02

2011 200 9.08 22.02

Dividend Payout ratio

30 25 20 Rtio 15 10 5 0 1 2 3 Year 4 5 6 year DPR

Interpretation
According to significance higher ratio mean company finance position is good. In 2007 ratio is good 29.4 and 2008 ratio was decreased 24.0. Again ratio was decreased 19.23 in 2009. But ratio is increased because of earning per share was increased and 2011 ratio was 22.02

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Earnings per Share (EPS) Ratio:

Definition: Earnings per share ratio (EPS Ratio) are a small variation of return on equity capital ratio and is calculated by dividing the net profit after taxes and preference dividend by the total number of equity shares. Formula of Earnings per Share Ratio: The formula of earnings per share is: Earnings per share (EPS) Ratio = (Net profit after tax

Preference dividend) / No. of equity shares (common shares) Significance: The earnings per share are a good measure of profitability and when compared with EPS of similar companies, it gives a view of the comparative earnings or earnings power of the firm. EPS ratio calculated for a number of years indicates whether or not the earning power of the company has increased.

Year Net profit Equity share EPS ratio

2007 631.30 132.39 4.76

2008 423.67 133.03 3.18

2009 190.00 133.03 1.42

2010 469.31 133.03 3.52

2011 441.29 133.03 3.31

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EPS Ratio
5 4 Ratio 3 EPS 2 1 0 2006

2007

2008

2009 Year

2010

2011

2012

Interpretation In 2007 ratio was good comparing last five year. After that ratio is decreased in 2008 &2009 that is not good for the company 3.18 &1.42. But 2010 ratio is increased up to 3.52 and then again it decreased in 2011.

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STATISTICAL ANALYSIS
1. SALES TREND 2. NET PROFIT TREND 3. WORKING CAPITAL TREND 4. DIVIDEND TREND

52

Year 2007 2008 2009 2010 2011 2012 2013

Sales 7358.88 7972.52 6168.99 7436.18 11407.15 10337.804 11092.824

Sales trend 6556.704 7312.724 8068.744 8824.764 9580.784 10336.80 11092.82

Note: Expected value for the year of 2012 & 2013 (10336.80 &11092.82). These values are finding on the base sales value

a= Ey/n b=Exy/x2 y= a+b(x) a= 40343.72/5 =8068.744 b= 7560.2/10=756.02

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YEAR 2007 2008 2009 2010 2011 2012 2013

NET PROFIT 441.29 469.31 190.00 423.67 631.30 531.428 564.866

NET PROFIT TREND 364.238 397.676 431.114 464.552 497.990 531.428 564.866

Note: Expected value for the year 2012 & 2013 (531.428 & 564.866). These values are finding on base of net profit.

a= Ey/n b=Exy/x2 y= a+b(x) a= 2155.57/5 = 431.114 b= 334.38/10=33.438

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YEAR 2007 2008 2009 2010 2011 2012 2013

WORKING CAPITAL 407.70 661.08 1043.19 619.71 387.82 599.561 591.448

WORKING CAPITAL TREND 49.634 336.767 623.9 911.033 1198.166 1485.299 1772.432

Note: Expected value for the year 2012 & 2013 (1485.299 & 1772.432). These values are finding on base of working capital..

a= Ey/n b= Exy/x2 y= a+b(x) a= 3119.5/5 = 623.9 b= 2871.33/10=287.133

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Year 2007 2008 2009 2010 2011 2012 2013

Dividend 150 150 100 150 200 180 190

Dividend trend 130 140 150 160 170 180 190

Note: Expected value for the year 2012 & 2013 (180 &190). These values are finding on base of Dividend.

a= Ey/n b= Exy/x2 y= a+b(x) a= 750/5 = 150 b= 100/10=10

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CORRELATION ANALYSIS
SALE SAND NET PROFIT SALES AND DIVIDEND PAID
NET PROFIT AND DIVIDEND PAID

DIVIDEND PER SHARE AND EARNING PER SHARE WORKING CAPITAL AND NET PROFIT

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Correlation Co-efficient Definition:

A measure of the strength of linear association between two variables. Correlation will always between -1.0 and +1.0. If the correlation is positive, we have a positive relationship. If it is negative, the relationship is negative.

Formula:
Correlation Co-efficient : Correlation(r) =[ NXY - (X)(Y) / Sqrt([NX2 - (X)2][NY2 (Y)2])] where N = Number of values or elements X = First Score Y = Second Score XY = Sum of the product of first and Second Scores X = Sum of First Scores Y = Sum of Second Scores X2 = Sum of square First Scores Y2 = Sum of square Second Scores

1. Correlation coefficient between sales and net profit is 0.895 Year Sales (x) Net profit (y) 2007 7358.88 441.29 2008 7972.52 469.31 58 2009 6168.99 190.00 2010 7436.18 423.67 2011 11407.15 631.30

2. correlation coefficient between sales and dividend paid is 0.935

Year Sales (x) Dividend paid (y)

2007 7358.88 150

2008 7975.52 150

2009 6168.99 150

2010 7436.18 150

2011 11407.15 200

3. correlation coefficient between net profit and dividend paid is 0.987

Year Net profit (x) Dividend paid (y) 2007 441.29 150 2008 469.31 150 2009 190.00 150 2010 423.67 150 2011 631.30 200

4. correlation coefficient dividend per share and earning per share is

0.987
Year DPS (x) EPS (y) 2007 1.50 3.33 2008 1.50 3.53 2009 100 1.43 2010 1.50 3.18 2011 2.00 4.75

5. correlation coefficient working capital and net profit is 0.892 Year Working capital (x) Net profit (y) 2007 407.70 441.29 2008 661.08 469.31 2009 1043.19 190.00 2010 619.71 423.67 2011 387.82 631.30

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FINANCIAL ANALYSIS
BALANCE SHEET PROFIT AND LOSS CASH FLOW CAPITAL STRUCTURE DIVIDEND YEARLY RESULT

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Balance Sheet of Ashok Leyland

Mar '11 12 mths

------------------- in Rs. Cr. -------------------

Mar '10 12 mths

Mar '09 12 mths

Mar '08 12 mths

Mar '07 12 mths

Sources Of Funds
Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves 133.03 133.03 0.00 0.00 2,523.65 1,306.28 3,962.96 1,272.22 1,385.97 2,658.19 6,621.15 Mar '11 12 mths 133.03 133.03 0.00 0.00 2,190.10 1,333.17 3,656.30 788.12 1,492.33 2,280.45 5,936.75 Mar '10 12 mths 133.03 133.03 0.00 0.00 1,976.00 1,364.86 3,473.89 304.41 1,657.57 1,961.98 5,435.87 Mar '09 12 mths 133.03 133.03 0.00 0.00 1,993.57 22.38 2,148.98 190.24 697.26 887.50 3,036.48 Mar '08 12 mths 132.39 132.39 0.00 0.00 1,739.23 22.96 1,894.58 360.22 280.18 640.40 2,534.98 Mar '07 12 mths

Networth
Secured Loans Unsecured Loans

Total Debt Total Liabilities

Application Of Funds
Gross Block Less: Accum. Depreciation 6,691.89 2,058.10 4,633.79 387.82 1,230.00 2,208.90 1,185.21 179.53 3,573.64 787.17 0.00 4,360.81 0.00 3,505.26 490.33 3,995.59 365.22 4.31 6,621.14 6,018.63 1,769.07 4,249.56 619.71 326.15 1,638.24 1,022.06 188.92 2,849.22 928.31 330.01 4,107.54 0.00 3,002.68 368.69 3,371.37 736.17 5.17 5,936.76 4,953.27 1,554.16 3,399.11 1,043.19 263.56 1,330.01 957.97 86.93 2,374.91 819.63 1.15 3,195.69 0.00 2,207.29 268.08 2,475.37 720.32 9.69 5,435.87 2,942.44 1,416.89 1,525.55 661.08 609.90 1,223.91 375.84 44.55 1,644.30 708.26 406.82 2,759.38 0.00 2,196.49 345.23 2,541.72 217.66 22.29 3,036.48 2,620.20 1,313.16 1,307.04 407.70 221.09 1,070.32 522.88 88.55 1,681.75 516.78 346.39 2,544.92 0.00 1,865.97 104.23 1,970.20 574.72 24.42 2,534.97

Net Block
Capital Work in Progress

Investments
Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions

Net Current Assets

Miscellaneous Expenses

Total Assets

61

Contingent Liabilities Book Value (Rs)

881.77 19.97

445.03 17.46

754.37 15.85

1,783.97 15.99

1,129.49 14.14

Profit & Loss ------------------- in Rs. Cr. ------------------account of Ashok Leyland

Mar '11 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths Mar '07 12 mths

12,393.36 986.21 11,407.15 40.60 175.54 11,623.29 8,406.17 65.19 974.60 86.04 857.00 0.19 -24.06 10,365.13 Mar '11 12 mths

8,071.74 635.56 7,436.18 89.34 251.85 7,777.37 5,534.24 44.47 671.61 45.51 645.89 0.16 -15.25 6,926.63 Mar '10 12 mths 761.40 850.74 101.85 748.89 204.11 0.00 544.78 0.00

6,826.96 657.97 6,168.99 71.07 1.05 6,241.11 4,554.36 38.42 566.26 50.30 495.68 0.13 -8.20 5,696.95 Mar '09 12 mths 473.09 544.16 157.30 386.86 178.41 0.00 208.45 0.26

9,178.82 1,206.30 7,972.52 95.15 97.48 8,165.15 5,952.86 45.28 616.17 57.48 263.55 330.84 -0.67 7,265.51 Mar '08 12 mths 804.49 899.64 83.63 816.01 177.36 0.49 638.16 0.00

8,513.93 1,155.05 7,358.88 101.02 48.98 7,508.88 5,570.18 45.44 480.70 41.70 259.50 324.31 -0.13 6,721.70 Mar '07 12 mths 686.16 787.18 31.82 755.36 150.57 0.30 604.49 2.96

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items

1,217.56 1,258.16 188.92 1,069.24 267.43 0.00 801.81 0.00 62

PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

801.81 170.50 631.30 1,958.96 0.00 266.07 43.16 13,303.38 4.75 200.00 19.97

544.78 121.10 423.67 1,392.39 0.00 199.55 33.14 13,303.38 3.18 150.00 17.46

208.71 18.45 190.00 1,142.59 0.00 133.03 22.61 13,303.38 1.43 100.00 15.85

638.16 168.84 469.31 1,312.66 0.00 199.77 33.95 13,303.38 3.53 150.00 15.99

607.45 163.22 441.29 1,151.50 0.00 198.58 27.85 13,238.70 3.33 150.00 14.14

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Cash Flow of Ashok Leyland

Mar '11 12 mths

------------------- in Rs. Cr. ------------------Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths Mar '07 12 mths

Net Profit Before Tax

Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities

801.80 591.38 -917.73

544.77 1090.17 -783.17

208.45 -525.58 -664.18

638.15 1065.69 -809.68

604.51 499.95 -749.69

-13.64

123.31

459.18

364.52

-289.38

Net (decrease)/increase In Cash and Cash Equivalents

Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

-339.98

430.32

-730.58

620.53

-539.12

515.36 175.37

85.15 515.46

815.73 85.15

195.20 815.73

850.32 311.21

64

Capital Structure (Ashok Leyland)

Period From 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1994 1993 1992 1991 1990 1989 1986 1984 1981 1979 1977 1975 1972 1969 1965 1963 1960 1959 1957 1956 1952 To 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1994 1993 1992 1991 1990 1989 1986 1984 1981 1978 1976 1973 1972 1966 1964 1963 1960 1958 1957 1955 Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Instrument Authorized Issued Capital Capital
(Rs. cr) (Rs. cr)

-PAIDUPShares (nos) 1330338317 1330338317 1330338317 1330338317 1323870317 1221586776 1189294200 118929420 118929420 118929420 118929420 118929420 69513696 69513696 31496309 31496309 31342976 21390000 18130000 16500000 33000000 28038651 18692434 15577029 15578549 12575068 11047464 9942998 4000000 3742000 1713360 1091360 Remarks Face Value 1 1 1 1 1 1 1 10 10 10 10 10 10 10 10 10 10 10 10 10 5 5 5 5 5 5 5 5 5 5 5 5 Capital 133.03 133.03 133.03 133.03 132.39 122.16 118.93 118.93 118.93 118.93 118.93 118.93 69.51 69.51 31.5 31.5 31.34 21.39 18.13 16.5 16.5 14.02 9.35 7.79 7.79 6.29 5.52 4.97 2 1.87 0.86 0.55

200 200 150 150 150 150 150 150 150 150 150 150 100 100 100 50 50 25 25 25 25 25 15 10 10 10 10 10 3.25 3.25 2 2

133.05 133.05 133.05 133.05 132.41 122.18 118.95 118.93 118.93 118.93 118.93 118.93 100 69.51 31.5 31.5 31.34 21.39 18.13 16.5 16.5 14.02 9.35 7.79 7.79 8.62 5.53 4.97 3.25 2 1.5 0.75

Announcement Date

Effective Date Dividend Type Dividend (%)

65

19-05-11 29-04-10 15-05-09 08-05-08 14-03-07 03-05-06

29-06-11 16-07-10 14-07-09 16-07-08 28-03-07 12-07-06

Final Final Final Final Interim Final

200.00 150.00 100.00 150.00 150.00 120.00

AGM

Yearly Results of Ashok Leyland

66

------------------- in Rs. Cr. -------------------

Mar '11 Sales Turnover Other Income Total Income Total Expenses Operating Profit Profit On Sale Of Assets Profit On Sale Of Investments Gain/Loss On Foreign Exchange VRS Adjustment Other Extraordinary Income/Expenses Total Extraordinary Income/Expenses Tax On Extraordinary Items Net Extra Ordinary Income/Expenses Gross Profit Interest PBDT Depreciation Depreciation On Revaluation Of Assets PBT Tax Net Profit Prior Years Income/Expenses Depreciation for Previous Years Written Back/ Provided Dividend Dividend Tax Dividend (%) Earnings Per Share Book Value Equity Reserves Face Value 11,117.71 15.33 11,133.04 9,900.15 1,217.56 --------1,232.89 163.66 1,069.23 267.43 -801.80 170.50 631.30 -----4.75 -133.03 2,523.65 1.00

Mar '10 7,244.71 70.45 7,315.16 6,481.87 762.84 ------3.27 --833.29 81.13 748.89 204.11 -544.78 121.10 423.68 -----3.18 -133.03 2,202.55 1.00

Mar '09 5,981.07 49.62 6,030.70 5,511.64 469.43 ------13.49 --519.05 118.71 386.86 178.41 -208.45 18.45 190.00 -----1.43 -133.03 1,976.00 1.00

Mar '08 7,729.12 74.00 7,803.12 6,925.13 803.99 ------8.41 --877.99 49.74 819.84 177.36 -642.48 173.17 469.31 -----3.53 -133.03 1,993.57 1.00

Mar '07 7,168.18 70.80 7,238.98 6,465.49 702.69 ------13.08 --773.49 5.33 755.08 150.57 -604.51 163.22 441.29 -----3.33 -132.39 1,739.23 1.00

67

FINDINGS AND SUGGESTION

FINDINGS
68

 In 2009 gross profit ratio was decreased 8.41 and it was lower Comparing with last five year Net profit 2009 ratio is decreased with 2.81% .Because of the expenses is increased

Return on net worth also fluctuating in 2009 &2010 ratio was decreased 1.42 to 3.18 because of the net profit

Fixed asset also effected in 2009 & 2010 ratio is lower than 2007 & 2008 because cost of sales is reduce Current ratio is decreased because company not maintained current asset because of that ratio is decreased still it was 1.01 in 2011 Liquid ratio was decreasing from date of calculation in 2007 and 2008 ratio was 0.32 & 0.19. Because of current liabilities is increasing Inventory turn over ratio was slightly decrease in 2010 debtors turn over ratio was decreased in 2009 and 2010 slightly increased up to 7.89 in 2011 ratio is increased 10.4 times this highest comparing to last two year 2010 &2011.

69

 Dividend pay out ratio in 2007 ratio is good 29.4 and 2008 ratio was decreased 24.0. Again ratio was decreased 19.23 in 2009 Earning per share was decreased in 2009 because of net profit is deceased.

SUGGESTION

70

 The current ratio and absolute ratio was maintained lower cash than ideal ratio. So, the company cab take step to increase the cash position to meet its expenses. The company is allowed credit period for 50 days. The debt collection period can be reduced with in 30days. The company have to maintained there expenses and liabilities To reduce the investor cost of the company must follow average inventory system, Otherwise, the company was making investment in current asset and reducing cost of sales at the same time increasing sales and profit was good in earlier days.

71

 MY EXPERIENCE

MY EXPERIENCE
72

My first day started with small work like filling the form and enter the value of VAT in ms excel. This work is done by me nearly five day and I was successfully done. After then they given some bill books like sales bill book and purchases bill book bank document etc, they briefly explain about all things. I have to complete that work within three day because they have to pay the tax to government so my supervisor going putting pressure on me that you have to complete within time. Whole day I enter all the sales entries in tally. Second day all most work was completed I feel very happy that I completed my work within the time limited. I told to my supervisor they check my work there was some mistake in entries that time I feel little sad but my supervisor told me the way to find mistake. Next day they given work for the income tax department and pan card work laxmi madam help me to fill the form and procedure regarding the pan card and each me the E-filing, calculation of income. next step is to auditing and preparing the balance sheet gopal ji was old person among us and great experience in auditing he teach me the auditing and that day old client have some problem in regarding tax so gopal ji told me that read and find out the problem and I am totally blank because I dont have any idea I read all document I find out that client was not preparing the proper bills. gopal ji told the problem and find out solution and prepared report and paid previous year tax and increased the bank balance. When I gone for internship I feel nervous because I never done any work like that and I have to completed project because without project I cant completed my graduation. When I started working there I feel comfortable and it increased my willingness and confidence level. This
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internship given me great experience it teaches me that if you doing the work then only you get success.

BIBLIOGRAPHY
74

75

WWW.ashokleyland.com WWW.wikipedia.com WWW.money controller.com

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