financial analysis by hritvik

Chapter 1.0: Introduction and Overview

1.1 Company Profile

Ashok Leyland is a commercial vehicle manufacturing company based in Chennai

India. Founded in 1948, the company is one of India's leading manufacturers of

commercial vehicles, such as trucks and buses, as well as emergency and military

vehicles. Operating six plants, Ashok Leyland also makes spare parts and engines

for industrial and marine applications. It sells about 60,000 vehicles and about

7,000 engines annually. It is the second largest commercial vehicle company in

India in the medium and heavy commercial vehicle (M&HCV) segment with a

market share of 28%. With passenger transportation options ranging from 19

seaters to 80 seaters, Ashok Leyland is a market leader in the bus segment. The

company claims to carry over 60 million passengers a day, more people than the

entire Indian rail network. In the trucks segment Ashok Leyland primarily

concentrates on the 16 ton to 25 ton range of trucks. However Ashok Leyland has

presence in the entire truck range starting from 7.5 tons to 49 tons. The joint

venture announced with of Japan would Nissan motors prove its presence in the

Light Commercial Vehicle (LCV) segment (<7.5 tons). An Ashok Leyland bus run by

the Chennai Metropolitan Transport Corporation

Following the independence of India, Pandit Jawaharlal Nehru, India’s first Prime

Minister, persuaded Mr Raghunandan Saran, an industrialist, to enter automotive

manufacture. The company began in 1948 as Ashok Motors, to assemble Austin

cars. The company was renamed and started manufacturing commercial vehicles in

Financial Analysis of Ashok Leyland

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 Leyland’s 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 programme 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 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 the

ISO 9002 certification. The more comprehensive ISO 9001 certification came in

1994, QS 9000 in 1998 and ISO 14001 certification for all vehicle manufacturing

units in 2002. In 2006, Ashok Leyland became the first automobile company in India

to receive the TS16949 Corporate Certification. Editor’s note: This is part of a series

of articles peeking into clean car industries and car manufacturers of China, India,

South Korea and Germany. Among many other goals, Ashok Leyland aims to

expand its operations to penetrate into overseas markets. Included in the

company’s 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 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.

1.2 Current status

Ashok Leyland is the second technology leader in the commercial vehicles sector of

India. The history of the company has been punctuated by a number of

technological innovations, which have since become industry norms. It was the first

to introduce multi-axled trucks, full air brakes and a host of innovations like the rear

engine and articulated buses in India. In 1997, the company launched the country’s

first CNG bus and in 2002, developed the first Hybrid Electric Vehicle.

The company has also maintained its profitable track record for 60 years. The

company has increased its rated capacity to 105,000 vehicles per annum. Also

further investment plans including putting up two new plants - one in uttrakhand in

North India and a bus body building unit in middle-east Asia are fast afoot. It already

has a sizable presence in African countries like Nigeria, Ghana, Egypt and South

Africa.

Ashok Leyland has also entered into some significant partnerships, seizing growth

opportunities offered by diversification and globalization – with Continental

Corporation for automotive infotronics; with Alteams in Finland for high pressure die

casting and recently, with John Deere for construction equipment. In 2010 Ashok

Leyland acquired a 26% stake in the British bus manufacturer Optare, a company

based on the premises of a former British Leyland subsidiary C.H.Roe. In

December 2011 Ashok Leyland increased its stake in Optare to 75.1%.


1.3 Facilities

The company has seven manufacturing locations in India:

o Ennore and Hosur, Tamil nadu (Hosur - 1, Hosur - 2, CPPS)

o Alwar, Rajasthan

o Bhandara, Maharashtra

o Pantnagar, Uttarakhand

Ashok Leyland's Technical Centre, at Vellivoyalchavadi (VVC) in the outskirts

of Chennai, is a state-of-the-art product development facility, that apart from

modern test tracks and component test labs, also houses India's one and only

Six Poster testing equipment

The company had an Engine Research and Development facility in Hosur,

which was shifted to VVC, Chennai

The company has signed an agreement with Ras Al Khaimah Investment

Authority (RAKIA) in UAE for setting up a bus body building unit in the Middle

East

1.4 Achievements

Ashok Leyland buses carry 60 million passengers a day, more people than

the entire Indian rail network

Ashok Leyland has a near 85% market share in the Marine Diesel engines

markets in India

In 2002, all the vehicle-manufacturing units of Ashok Leyland were ISO 14001

certified for their Environmental Management System, making it the first

Indian commercial vehicle manufacture to do so


In 2005, received the BS7799 Certification for its Information Security

Management System (ISMS), making it the first auto manufacturer in India to

do so

In 2006, received the ISO/TS 16949 Corporate Certification, making it the first

auto manufacturer in India to do so

It is one of the leading suppliers of defence vehicles in the world and also the

leading supplier of logistics vehicles to the Indian Army

It is the largest manufacturer of CNG buses in the world

1.5 Purpose and Principles

Always working with integrity

Conducting our operations with integrity and with respect for the many people,

organisations and environments our business touches has always been at the heart

of our corporate responsibility.

Positive impact

We aim to make a positive impact in many ways: through our brands, our

commercial operations and relationships, through voluntary contributions, and

through the various other ways in which we engage with society.

Continuous commitment

We're also committed to continuously improving the way we manage our

environmental impacts and are working towards our longer-term goal of developing

a sustainable business.


Setting out our aspirations

Our corporate purpose sets out our aspirations in running our business. It's

underpinned by our code of business Principles which describes the operational

standards that everyone at Unilever follows, wherever they are in the world. The

code also supports our approach to governance and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to the

same standards we do. Our Business partner code, aligned to our own Code of

business principles, comprises ten principles covering business integrity and

responsibilities relating to employees, consumers and the environment.

1.6 Products of Ashok Leyland

The products of Ashok Leyland have been divided as per the following segments:

• Buses

• Trucks

• Light Vehicles

• Defense Vehicles

• Power Solution

Buses

People move to keep their lives ticking and the buses move some 70 million people

every day. From 18 seaters to 80 seaters, Ashok Leyland has an extensive range of


buses that fits almost every requirement. Following are the categories in the bus

segment:

City Bus

Sub-Urban Bus

Inter-City Bus

School and Staff Bus

Special Bus

Models:

o ULE CNG BS4

o ULE Diesel BS4

o Lynx BS3

o Stag BS3

o Vestibule Bus – BS3

o Titan Double Decker BS3

o RE SLF BS4

o FE SLF CNG BS4

o FE SLF BS4

o Cheetah BS3 (IL MECH)

o Cheetah – BS3 (EDC)

o Viking BS4

o Viking BS3 (EDC)

o Viking BS3 (IL MECH)


o AVION ULF

Trucks

Trucks have been the wheels of our country’s economy for decades with their highly

comprehensive range of trucks for a variety of applications: long-hauls, distribution,

construction or mining. Available in a wide array of configurations and driveline

options, chances are high that whatever be your need to move goods, Ashok

Leyland will have a truck to meet it. Following are the categories in the truck

segment in accordance to their application:

Long Haul

Mining and Construction

Distribution Truck


Models:

o Multi Axle Vehicles

o Tractors

o 4x2 – Trucks

o Multi – Axel Tripper Trucks

o 4x2 Haulage

o ICV

o U – Truck

o AVIA Truck

Light Vehicles

The Light Vehicles segment has come to the fore with fractional, last mile deliveries

of consumables becoming critical. Our DOST, a vehicle with a rated payload of 1.25

tonnes, is positioned to meet an evolving market need for slightly heavier tonnage

vehicles due to higher aggregation of small loads.


The Dost Story

Ever since the beginning of human civilization, men have felt the need for a

trustworthy companion for their journeys and to take care of their transportation

requirements. This need led to the growth, spread and prosperity of civilization. For

years, men experimented with various means to transport their goods and travel.

Each time they came up with better and innovative results. From first cart on wheels

to bullock carts and horse carriages, to bicycles and rickshaws, men have come a

long way in making both transportation and life easier. In India, new entrepreneurs

are setting out to build their businesses. Their search for independence, their quest

for economic growth demands a trusted and reliable partner who will bravely travel

the distance with them.

Presenting Ashok Leyland’s DOST :

DOST is a brand new offering which in comparison to the products presently

available in the SCV (Small Commercial Vehicle) segment, promises a new

experience and technology at an increased payload of 1.25 Tons. It is equipped with

a state-of-the-art 55 hp, 3 cylinder, 1.5 litre TDCR engine that is tuned for fuel

economy as well as the driveability and gradeability required for Indian roads thanks

to the Common Rail technology and a substantial torque of 150Nm. Completing the

powertrain package is a five-speed manual gear box. DOST’s practicality is further

increased by its tight turning circle radius of just 4.8 m, designed to easily negotiate

both congested city roads and narrow rural lanes. The Euro-look cab is roomy,

comfortable with superior ergonomics and an in-built safety structure. The unique

Front Transverse leaf suspension matches ride quality with high durability. The Load

Sensing Proportioning Valve (LSPV) technology measures the weight on the load

body and applies the brake force accordingly to ensure stable braking irrespective of

whether the vehicle is fully loaded or empty. DOST will be available in three versions

with the top-end version featuring air-conditioning, power steering and fabric seats.

The customer will also have a palette of three colours to choose from: white, beige

and blue. Dost is envisaged as ‘the’ next-generation product in the Indian LCV

industry, rapidly evolving on the lines of the passenger car segment. It is meant for

discerning customers who want to exert their economic and social status. It is a


contemporary, powerful and highly efficient product, bringing forth to its users,

“Japanese Quality at Indian Cost”.

Defence Vehicles

Ashok Leyland Defence Systems (ALDS) offers logistical, tactical and special

purpose defence solutions on its Fox, Stallion and Rhino vehicle platforms.

The Fox provides armed forces, an all-wheel drive (4X4), multi-purpose, all-terrain

vehicle that is a versatile performer, even in inhospitable terrain. The Fox, with a

military payload of 1.5 tonnes, lends itself to multiple applications or roles and is

available in both armoured and non-armoured body options.

The Stallion, which is designed for reliability, high mobility, off-road tactical

capabilities and protection, provides an end-to-end logistical defence solution to

global armed forces. The Stallion 4x4 and Stallion 6x6, with military payloads from

2.5 tonnes to 7.5 tonnes, are available as a complete package to customers along

with modular solutions such as Fleet Management System, maintenance kits,

training packages, and electronic publications, along with Global Warehouse

Support.

The Rhino provides armed forces a logistical and tactical option in the heavy duty

defence vehicle category with military payloads from 8 tonnes to 10 tonnes.

ALDS’ vehicles range includes Light Specialty Vehicles (LSV), Mine Protected

Vehicles (MPV), General Services Role, Light Recovery Vehicles, High Mobility

Vehicles, Fire Fighting Trucks, Field Artillery Tractors and other special applications.

Products have been classified as follows:

Logistical Vehicles

Tactical Vehicles

Special Purpose Vehicles


Logistical Vehicles

Missions for armed forces today range from humanitarian relief and reconstruction,

peace enforcement, counter terrorism or counter insurgency operations to major

combat. These varied missions call for logistical vehicles that offer maximum

operational flexibility and robust capabilities at lower costs.

Ashok Leyland Defence’s family of multi-purpose logistical support vehicles

provides proven, reliable vehicle platforms – viz. Stallion, Rhino and Fox. The three

vehicle platforms offer operational flexibility with high levels of reliability at lower

costs.

Fox

An all-wheel drive (4X4), multi-purpose, all-terrain vehicle with payload of 1.5

tonnes.

Stallion

A medium duty defence vehicle with military payloads from 2.5 tonnes to 7.5 tonnes

and logistical, tactical and special purpose applications.


http://defence.ashokleyland.com/content/stallion-0

http://defence.ashokleyland.com/content/fox-0

Rhino

A logistical and tactical option in the heavy duty defence vehicle category with

military payloads from 8 tonnes to 10 tonnes.

Tactical Vehicles

There has been a fundamental change in military operations, which has meant that

armed forces’ missions have gone beyond direct-fire battles to contemporary

conflict scenarios which include counter insurgency and peace enforcement.

The change in conflict scenarios has in turn changed the mission scope and threat

levels faced by the armed forces’ tactical vehicles. The focus has shifted from

vehicle performance and payload to crew protection, high mobility, improved

reliability and lower operational costs.

Ashok Leyland Defence Systems’ tactical vehicles on the Stallion and Fox platforms

are suited for different kinds of missions across varied terrains, with superior

reliability and off-road mobility.

MPV

An all-wheel drive (4x4), multi-purpose, all-terrain vehicle with high mobility, high

protection and multi-mission capabilities.


http://defence.ashokleyland.com/content/mpv

http://defence.ashokleyland.com/content/rhino-0

Special Purpose Vehicles

Armed forces require a range of special purpose vehicles for roles as varied as

armoured transport to fire-fighting roles. Special purpose vehicles gain significance

in today’s scenario of counter-terrorist operations and urban conflict areas.

Ashok Leyland Defence Systems designs special purpose vehicles including

armoured, non-armoured buses and crash fire tenders. Ashok Leyland Defence

Systems’ special purpose vehicles are designed with high-mobility and provide

reliability in logistical and special application roles.

The buses are designed to provide both mobility and protection to the crews and

personnel being transported. The crash fire tenders are designed as fire-fighting

vehicles and are equipped with modern fire-fighting equipment with superior

performance in terms of speed, acceleration, carrying capacity and on-road and off-

road capability.

Buses

Buses provide mobility and protection to the crews and personnel being transported

in hostile environments.


http://defence.ashokleyland.com/content/buses-0

Power Solution

LEYPOWER Power Solutions is the fastest growing genset provider in India. With

state-of-the-art technology in engine, alternator and controllers, LEYPOWER

provides a fully integrated power system at par with global standards at a very

competitive overall cost of ownership.

LEYPOWER ready-to-use diesel generating sets meet with the latest CPCB norms

in India and built to comfortably meeting international norms. These sets are

powered by the compact 4, 6 and 8 cylinder series of diesel engines. Aesthetically

designed, these DG sets are silent, environment-friendly require minimum

maintenance and are low on operating costs.

Leypower diesel generating sets are manufactured in the state-of-the-art plants

located across 6 units in the country using the latest machinery and skill sets to roll

out well engineered DG sets.

The present range extends from 10-2000 kVA with generating sets manufactured to

operate under arduous conditions.

Products in the segment

Leypower

Leymarine

Special Engines

Leygas

Leyfire


Chapter 2.0: Financial Analysis

Board of directors:The following are the other functional heads at Ashok Leyland:

1. Mr. Vinod Dasari - Managing Director

2. Mr. K.Sridharan- Chief Financial Officer

3. Mr. J.N.Amrolia, Executive Director - Construction and Allied Businesses

4. Mr. Anup Bhat, Executive Director - Strategic Sourcing

5. Mr. S.Balasubramanian, Executive Director - Projects

6. Mr. A.K.Jain, Executive Director - Project Planning

7. Mr. R.R.G.Menon, Executive Director - Product Development

8. Mr. N.Mohanakrishnan, Executive Director - Internal Audit

9. Mr. M.Nataraj, Executive Director - Global Bus Strategy

10.Mr. Rajindar Malhan, Executive Director - International Operations

11.Mr. Rajive Saharia, Executive Director - Marketing

12.Mr. B.M.Udayashankar, Executive Director - Manufacturing

13.Mr. Shekar Arora, Executive Director - Human Resources

14.Mr. A.R.Chandrasekaran, Executive Director - Secretarial and Company

Secretary

Objectives

There are different objectives for which the study has been completed. They are as

follows:

1) To understand the importance of financial statement analysis, calculate

the ratios, and also analyze them

2) To study the Ashoka Leyland financial position and market standing

3) To study the Ashoka Leyland’s financial programme

4) To find out profitability, liquidity of Ashoka Leyland (hinduja group)


Methodology

The main objective of the study is to determine and analyze the financial position of

the Ashoka Leyland Ltd. For this purpose, the information was collected by two

ways:

1. Primary Data:

Primary data is that which is not published but it is very useful data. So the

information was collected by discussion held with the executives of accounts

and finance department.

2. Secondary Data:

Secondary data consist of the information that already exists or someone has

collected it for specific purpose. This data was collected by:

a) The company profile was collected from website of Ashoka

Leyland www.ashokaleyland.com

b) The other analytical information was collected from annual

report and books and discussion with finance manager.


http://www.ashokaleyland.com/

Financial Statement Analysis

The term financial statements are used in business refers to two statement the

balance sheet or statement of financial position reflecting the assets, liabilities,

capital and reserve as on a particular date and income statement or profit and loss

statement showing the results achieved during a certain period which are prepared

at the end of accounting period for a business enterprises. Financial statement also

called, as financial reports are account balances arranged in effective and

meaningful order so that the facts and concepts they portray may be readily

interpreted and used as bases for decision by all who are interested in the affairs of

business. The purpose of preparing financial statement is to convey to owners,

creditors and the general public about the financial position of the enterprises.

Financial statement used by the management as the basis for decision making,

planning operations like procurement of adequate financial and as a means

exercising control over financial position of the business and efficient and profitable

use of assets. According to American institute of certified public Accounts the

financial statement have been declared to process the following nature: the

financial statements are prepared for the purpose of presenting a periodical reviews

or report on the progress by the managements and deal with the status of

investment in the business and results achieved during the period under review.

They reflect a combination of recorded facts; accounting conventions applied affect

them materially.

The Usefulness of Financial Statement

The usefulness statement is the business mirror, which reflects the financial

position and operating strength and weakness of the concern. These statements

are useful to management, investors, bankers, workers, and government and public

at large.


The major uses of financial statements are:

As a report of stewardship.

As a basis of fiscal policies.

As a basis of granting credit.

USES AND OBJECTIVE OF FINANCIAL STATEMENT ANALYSIS

Financial Statement Analysis seeks to spotlight the significant facts and relationship

concerning managerial performance, corporate efficiency, financial strength &

weakness and credit worthiness of the company. With the help of the financial

analysis the manager can rationalize his decision and reach the business goal

easily. The financial statement such as income statement, balance sheet. The

income statement, the statement of retained and the statement of changes in

financial position report what has actually happened to earnings during a specified

period. The balance sheet presents a summary of financial position of the company

at a given point of time. The statement of retained earnings reconciles income

earned during the year and any dividends distributed with the change in retained

earnings between the start and end of the financial year under study. The statement

of changes in financial position provides a summary of funds flow during the period

of financial statement.

2.4 Significant Accounting Policies

A. Basis of preparation

The financial statements have been prepared to comply with the mandatory

Accounting Standards issued by the Institute of Chartered Accountants of India

(’ICAI’) and the relevant provisions of the Companies Act, 1956 (the ’Act’). The

financial statements have been prepared under the historical cost convention on


accrual basis. The accounting policies have been consistently applied by the

Company unless otherwise stated.

B. Fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment

losses. Cost comprises the purchase price and any attributable cost of bringing the

asset to its working condition for its intended use. Borrowing costs directly

attributable to acquisition or construction of fixed assets which necessarily take a

substantial period of time to get ready for their intended use are capitalized.

C. Intangibles

Patents, Trademarks, Designs and Licenses

Costs relating to patents, trademarks, designs and licenses which are acquired, are

capitalized and amortized on a straight-line basis over a period of 5 years.

Computer software

Software which is not an integral part of the related hardware, is classified as an

intangible asset and is being amortized over a period of 6 years, being the

estimated useful life.

Non-compete

Non-compete compensation is capitalized and amortized on a straight-line basis

over the life of the non-compete agreement.

Product Development

Cost incurred for acquiring rights for product under development are recognized as

intangible assets and amortized on a straight-line basis over a period of 5 years

from the date of regulatory approval. Subsequent expenditures on development

of such products are also added to the cost of intangibles.


D. Depreciation

Depreciation on fixed assets is provided on straight-line method at the rates and in

the manner prescribed in Schedule XIV of the Act. Premium paid on perpetual

leasehold land is charged to revenue on termination / renewal of lease agreements.

E. Leases

Operating lease payments are recognised as an expense in the Profit and Loss

account on a straight-line basis over the lease term.

F. Investments

Investments that are readily realisable and intended to be held for not more than a

year are classified as current investments. All other investments are classified as

long-term investments. Current investments are carried at lower of cost and fair

value determined on an individual investment basis. Long-term investments are

carried at cost. However, provision for diminution in value is made to recognise a

decline other than temporary in the value of the investments. Profit / loss on sale of

investments is computed with reference to their average cost.

G. Inventories

Inventories are valued as follows:

Raw materials, stores and spares and packaging materials

Lower of cost and net realisable value. However, materials and other items held for

use in the production of finished goods are not written down below cost if the

products in which they will be incorporated are expected to be sold at or above cost.

Cost is determined on a weighted average basis.

Finished goods


Lower of cost and net realisable value. Cost includes direct materials and labour

and a proportion of manufacturing overheads based on normal operating capacity.

Cost of finished goods includes excise duty.

Work-in-process

At cost up to estimated stage of process. Cost includes direct materials and labour

and a proportion of manufacturing overheads based on normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business,

less estimated costs of completion and the estimated costs necessary to make the

sale. Where duty paid / indigenous materials are consumed, in manufacture of

products exported prior to duty-free import of materials under the Advance License

Scheme, the estimated excess cost of such materials over that of duty free

materials is carried forward in the carrying cost of raw materials and charged to

revenue on consumption of such duty-free materials.

H. Revenue recognition

Revenue is recognised to the extent that it can be reliably measured and is

probable that the economic benefits will flow to the Company.

Sale of Goods:

Revenue from sale of goods is recognised when the significant risks and rewards of

ownership of the goods are transferred to the customer and is stated net of trade

discounts, excise duty, sales returns and sales tax.

Royalties, Technical know-how and licensing income:

Revenue is recognised on accrual basis in accordance with the terms of the

relevant agreement.

Interest:


Revenue is recognised on a time proportion basis taking into account the amount

outstanding and the rate applicable.

Dividends:

Revenue is recognised when the right to receive is established.

I. Research and development costs

Revenue expenditure incurred on research and development is charged to profit

and loss account in the year it is incurred. Capital expenditure is included in the

respective heads under fixed assets.

J. Expenditure on regulatory approvals

Expenditure incurred for obtaining regulatory approvals and registration of products

for overseas markets and product acquisitions is charged to revenue.

K. Employee stock option plan

The accounting value of stock options representing the excess of the market price

over the exercise price of the shares granted under "Employees Stock Option

Scheme" of the Company, is amortised as "Deferred employees compensation" on

a straight-line basis over the vesting period in accordance with the SEBI (Employee

Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.

L. Foreign currency translation

Investments in foreign entities are recorded at the exchange rates prevailing on the

date of making the investments. Transactions in foreign currencies are recorded at

the rates prevailing on the date of the transaction. Monetary items denominated in

foreign currency are restated at the rate prevailing on balance sheet date.

Exchange differences arising on the settlement of monetary items or on reporting


company’s monetary items at rates different from those at which they were initially

recorded during the year, or reported in the previous financial statements, are

recognised as income or expenses in the year in which they arise, except for

exchange differences arising on loans denominated in foreign currencies utilised for

acquisition of fixed assets from outside India, where the exchange gains/losses are

adjusted to the cost of such assets.

M. Retirement benefits

Provisions for liabilities in respect of gratuity, pension and leave encashment

benefits are made based on actuarial valuation made by an independent actuary as

at the balance sheet date. Contributions in respect of provident fund,

superannuation and gratuity are made to Trust set up by the Company for the

Purpose and charged to profit and loss account.

N. Taxes on income

Tax expenses comprise current tax, deferred tax and fringe benefit tax. The

provision for current income-tax is the aggregate of the balance provision for tax for

three months ended March 31, 2005 and the estimated provision based on the

taxable profit of remaining nine months up to December 31, 2005, the actual tax

liability, for which, will be determined on the basis of the results for the period April

1, 2005 to March 31, 2006. Deferred income tax reflects the impact of current year

timing differences between taxable income/ losses and accounting income for the

year and reversal of timing differences of earlier years. Deferred tax is measured

based on the tax rates and the tax laws enacted or substantively enacted at the

balance sheet date. Deferred tax assets are recognised only to the extent that there

is reasonable certainty that sufficient future taxable income will be available against

which such deferred tax assets can be realised. In respect of carry forward losses,

deferred tax assets are recognised only to the extent there is virtual certainty that

sufficient future taxable income will be available against which such losses can be

set off. Consequent to the introduction of Fringe Benefit Tax (FBT) effective April 1,


2005, the Company has made provision for FBT in accordance with applicable

Income-tax laws.

O. Export benefits / incentives

Export entitlements under the Duty Entitlement Pass Book ("DEPB") Scheme are

recognised in the profit and loss account when the right to receive credit as per the

terms of the scheme is established in respect of the exports made. Obligation /

entitlements on account of Advance Licence Scheme for import of raw materials are

accounted for on purchase of raw materials and / or export sales.

P. Contingent liabilities

Depending on the facts of each case and after due evaluation of relevant legal

aspects, the Company makes a provision when there is a present obligation as a

result of a past event where the outflow of economic resources is probable and a

reliable estimate of the amount of obligation can be made. The disclosure is made

for all possible or present obligations that may but probably will not require outflow

of resources as contingent liability in the financial statement.

Q. Use of estimates

In preparing Company’s financial statements in conformity with accounting

principles generally accepted in India, management is required to make estimates

and assumptions that affect the reported amounts of assets and liabilities and the

disclosure of contingent liabilities at the date of the financial statements and the

reported amounts of revenues and expenses during the reporting period; actual

results could differ from those estimates.

R. Earnings per share


Basic earnings per share are calculated by dividing the net profit or loss for the

period attributable to equity shareholders by the weighted average number of equity

shares outstanding during the period. The weighted average number of equity

shares outstanding during the period is adjusted for events of bonus issue and

share split. For the purpose of calculating diluted earnings per share, the net profit

or loss for the period attributable to equity shareholders and the weighted average

number of shares outstanding during the period are adjusted for the effects of all

dilutive potential equity shares.

S. Impairment of assets

The Company on an annual basis makes an assessment of any indicator that may

lead to impairment of assets. If any such indication exists, the Company estimates

the recoverable amount of the assets. If such recoverable amount is less than the

carrying amount, then the carrying amount is reduced to its recoverable amount by

treating the difference between them as impairment loss and is charged to the profit

and loss account.

TOOLS AND TECHNIQUES OF FINANCIAL STATEMENT ANALYSIS

The analysis of financial statement consists of a study of relationship and trends to

determine whether or not the financial position and results of operating as well as

the financial progress of the company are satisfactory or unsatisfactory. The

analysis of facts and related data was important and a number of techniques of

analysis are:

1) balance sheet

2) profit & loss accounts

3) cash flow statement

4) fund flow statement

5) ratio analysis


2.2 BALANCE SHEET

A financial statement that summarizes a company's assets, liabilities

and shareholders' equity at a specific point in time. These three balance sheet

segments give investors an idea as to what the company owns and owes, as well as

the amount invested by the shareholders. It's called a balance sheet because the

two sides balance out. This makes sense: a company has to pay for all the things it

has (assets) by either borrowing money (liabilities) or getting it from shareholders

(shareholders' equity). Each of the three segments of the balance sheet will have

many accounts within it that document the value of each. Accounts such as cash,

inventory and property are on the asset side of the balance sheet, while on the

liability side there are accounts such as accounts payable or long-term debt.

The exact accounts on a balance sheet will differ by company and by industry, as

there is no one set template that accurately accommodates for the differences

between different types of businesses.


Balance sheet

Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Sources of funds

Owner's fund

Equity share capital 133.03 133.03 133.03 133.03 132.39

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 2,523.65 2,190.10 1,976.00 1,993.57 1,739.23

Loan funds

Secured loans 1,272.22 788.12 304.41 190.24 360.22

Unsecured loans 1,385.97 1,492.33 1,657.57 697.26 280.18

Total 5,314.88 4,603.57 4,071.02 3,014.11 2,512.01

Uses of funds

Fixed assets

Gross block 6,691.89 6,018.63 4,953.27 2,942.44 2,620.20

Less : revaluation reserve 1,306.28 1,333.17 1,364.86 22.38 22.96

Less : accumulated depreciation 2,058.10 1,769.07 1,554.16 1,416.89 1,313.16

Net block 3,327.52 2,916.39 2,034.25 1,503.17 1,284.08

Capital work-in-progress 387.82 619.71 1,043.19 661.08 407.7

Investments 1,230.00 326.15 263.56 609.9 221.09

Net current assets

Current assets, loans & advances 4,360.81 4,107.53 3,195.70 2,759.38 2,544.92

Less : current liabilities & provisions 3,995.59 3,371.37 2,475.37 2,541.72 1,970.20

Total net current assets 365.23 736.15 720.33 217.66 574.72

Miscellaneous expenses not written 4.31 5.17 9.69 22.29 24.42

Total 5,314.88 4,603.57 4,071.02 3,014.11 2,512.01

Notes:

Book value of unquoted investments 1,117.49 244.01 101.69 365.07 43.22

Market value of quoted investments 524.13 328.36 193.98 391.84 281.39

Contingent liabilities 881.77 445.03 754.37 1,783.97 1,129.49

Number of equity shares outstanding

(Lacs)13303.4 13303.4 13303.4 13303.4 13238.7


2.3PROFIT & LOSS ACCOUNT

A financial statement that summarizes the revenues, costs and expenses

incurred during a specific period of time - usually a fiscal quarter or year. These

records provide information that shows the ability of a company to generate profit

by increasing revenue and reducing costs. The P&L statement is also known as a

"statement of profit and loss", an "income statement" or an "income and expense

statement".The statement of profit and loss follows a general form as seen in this

example. It begins with an entry for revenue and subtracts from revenue the costs

of running the business, including cost of goods sold, operating expenses,

tax expense and interest expense. The bottom line (literally and figuratively) is net

income (profit). Many templates can be found online for free, that can be used in

creating your profit and loss, or income statement. The balance sheet, income

statement and statement of cash flows are the most important financial statements

produced by a company. While each is important in its own right, they are meant

to be analyzed together

Profit loss account

(Amount in Crores)


Income

Operating income 11,407.15 7,436.18 6,168.99 7,972.52 7,358.88

Expenses

Material consumed 8,230.64 5,282.39 4,553.31 5,855.39 5,521.20

Manufacturing expenses 151.22 89.98 88.72 102.76 87.13

Personnel expenses 974.6 671.61 566.26 616.17 480.7

Selling expenses 761.38 571.69 430.77 194.63 170.7

Administrative expenses 95.81 74.36 65.04 399.76 413.1

Expenses capitalised -24.06 -15.25 -8.2 -0.67 -0.13

Cost of sales 10,189.60 6,674.79 5,695.90 7,168.04 6,672.71

Operating profit 1,217.56 761.4 473.08 804.48 686.18

Other recurring income 38.7 36.39 62.8 70.3 63.19


Adjusted PBDIT 1,256.25 797.79 535.88 874.78 749.37

Financial expenses 188.92 101.85 157.3 83.63 31.82

Depreciation 267.43 204.11 178.41 177.36 150.57

Other write offs - - - 0.49 0.3

Adjusted PBT 799.9 491.83 200.17 613.3 566.67

Tax charges 170.5 121.1 18.45 168.84 163.22

Adjusted PAT 629.4 370.73 181.72 444.46 403.45

Non recurring items 1.9 52.95 8.27 24.85 37.83

Other non cash adjustments - - 0.26 - 2.96

Reported net profit 631.3 423.67 190.25 469.31 444.25

Earnings before

appropriation1,208.75 905.98 692.53 831 674.62

Equity dividend 266.07 199.55 133.03 199.77 198.58

Preference dividend - - - - -

Dividend tax 43.16 33.14 22.61 33.95 27.85

Retained earnings 899.52 673.28 536.89 597.27 448.19

2.4CASH FLOW STATEMENT

3 Complementing the balance sheet and income statement, the cash flow

statement (CFS), a mandatory part of a company's financial reports since 1987,

records the amounts of cash and cash equivalents entering and leaving a

company. The CFS allows investors to understand how a company's operations

are running, where its money is coming from, and how it is being spent. Here you

will learn how the CFS is structured and how to use it as part of your analysis of

a company.

1. It is a statement that depicts change in cash position from one period to

another

2. A revenue or expense stream that changes a cash account over a given

period. Cash inflows usually arise from one of three activities - financing,

operations or investing - although this also occurs as a result of donations


or gifts in the case of personal finance. Cash outflows result from

expenses or investments. This holds true for both business and personal

finance.

3. An accounting statement called the "statement of cash flows", which

shows the amount of cash generated and used by a company in a given

period. It is calculated by adding noncash charges (such as depreciation)

to net income after taxes. Cash flow can be attributed to a specific project,

or to a business as a whole. Cash flow can be used as an indication of a

company's financial strength

Cash flow


Profit before tax 801.8 544.77 208.45 638.15 604.51

Net cash flow-operating activity 591.38 1,090.17 -525.58 1,065.69 499.95

Net cash used in investing activity -917.73 -783.17 -664.18 -809.68 -749.69

Net cash used in fin. activity -13.64 123.31 459.18 364.52 -289.38

Net inc/dec in cash and equivlnt -339.98 430.32 -730.58 620.53 -539.12

Cash and equivalnt begin of year 515.36 85.15 815.73 195.2 850.32

Cash and equivalnt end of year 175.37 515.46 85.15 815.73 311.21


2.5 DIVIDEND

1. A distribution of a portion of a company's earnings, decided by the board of

directors, to a class of its shareholders. The dividend is most often quoted in

terms of the dollar amount each share receives (dividends per share). It can

also be quoted in terms of a percent of the current market price, referred to as

dividend yield.Also referred to as "Dividend per Share (DPS)."

2. Mandatory distributions of income and realized capital gains made to

mutual fund investors.

3. Dividends may be in the form of cash, stock or property. Most secure and

stable companies offer dividends to their stockholders. Their share prices

might not move much, but the dividend attempts to make up for this. High-

growth companies rarely offer dividends because all of their profits are

reinvested to help sustain higher-than-average growth.

4. Mutual funds pay out interest and dividend income received from their

portfolio holdings as dividends to fund shareholders. In addition, realized

capital gains from the portfolio's trading activities are generally paid out

(capital gains distribution) as a year-end dividend.

Dividend Summary

For the year ending March 2011, Ashok Leyland has declared an equity dividend of

200.00% amounting to Rs 2 per share. At the current share price of Rs 27.40 these

results in a dividend yield of 7.3%.

The company has a good dividend track report and has consistently declared

dividends for the last 5 years.


* As per the Profit & Loss account

Dividend Declared

Announcement Date Effective Date Dividend Type Dividend (%) Remarks

19/05/2011 29/06/2011 Final 200 -

29/04/2010 16/07/2010 Final 150 -

15/05/2009 14/07/2009 Final 100 -

08/05/2008 16/07/2008 Final 150 -

14/03/2007 28/03/2007 Interim 150 -

03/05/2006 12/07/2006 Final 120 AGM

2.6 RATIOS

The ratio analyses concentrates on inter-relationship among the figures appearing in

the aforementioned four financial statements. The ratio analysis helps the

management to analyses the past performance of the firm and to make further

projection. Ratio analysis allows interested parties like shareholder, investors,

creditors, Government and analysts to make an evaluation of certain aspects of a

firm performance. Ratio analysis is a process of comparison of one figure against

another, which makes a ratio and the appraisal of the ratios to make proper analyses

about the strength and weakness of the firms operations. The calculation of ratios is

a relatively easy and simple task but the proper analyses and interpretation of the

ratios can be made only by the skilled analyst. While interpreting the financial

information, the analyst has to be careful in limitations imposed by the accounting

concepts and methods of valuation. Information of non-financial nature will also be

taken into consideration before a meaningful analyses is made. Ratio analysis is

extremely helpful in providing valuable insight into a company s financial picture.

Ratios normally pinpoint a business strength and weakness in two ways Ratios

provide an easy way to compare today performance with past Ratios depict the

areas in which a particular business is competitively advantaged or disadvantages


through comparing ratios to those of other business of the same size within the

same industry.

Classification of Ratio

Ratio may be classified in a number of ways keeping in view the particular purpose.

Ratio indicating profitability is calculated on the basis of the profit and loss A/ C;

those indicating financial are computed on the basis of balance sheet. To achieve

analysis effective understanding of the profitability and financial position of

business, ratio may be classified as:

A. LIQUIDITY RATIO:

The short-term liquidity ratio, which measures the liquidity of the firm and its ability

to meet it maturing short term obligations. Liquidity is defined as the ability to realize

value in money, the most liquid of assets. It refers to the ability to pay n cash, the

obligations that are due. Following are the main types of the liquidity ratio.

o Current Ratio

o Quick Ratio`

o Net-Working Capital Ratio

B. LEVERAGE RATIO:

The long-term financial stability of the firm may be consider upon its ability to meet

all its liabilities, including those not currently payable. The ratios which are important

in measuring the long term solvency ratio are as follows:-

o Total Debt to Equity Ratio

o Debt to total Capital Ratio

o Interest Coverage Ratio

C. PROFITABILITY RATIO:

The purpose of study and analysis of profitability ratios are to help assess the

adequacy of profits earned by the company and also to discover whether the

Profitability is increasing or declining. The profitability of the firm is the net result of


a large number of the policies and decisions. The profitability ratios show the

combined effects of liquidity, asset management and debt management on

operating results. Profitability ratios are measured with reference to sales, capital

employed, total assets employed, shareholders fund etc. The major profitability

rates are as follows:-

o EBIT to Sales Ratio

o EAT To Sales

o Working Capital to Net Assets

o Return on Capital

D. TURNOVER RATIO:

Activity ratio or turnover ratio measure how effectively the firm employs its

resources. These ratios are called turnover ratios which involve comparison

between the level of sales and investment in various accounts inventories, debtors,

fixed assets, etc, activity ratios are used to measure the speed with which various

accounts are converted into sales or cash. The following activity ratios are

calculated for analysis.

o Inventory Ratio

o Fixed Assets Turnover Ratio

o Fixed Assets Turnover Ratio

o Debtors Turnover Ratio

o Debtor Collection Period

Profitability ratios

Profitability ratios measure the company's use of its assets and control of its

expenses to generate an acceptable rate of return

Gross margin, Gross profit margin or Gross Profit Ratio

OR


Operating margin, Operating Income Margin, Operating profit

margin or Return on sales (ROS)

Note: Operating income is the difference between operating revenues and

operating expenses, but it is also sometimes used as a synonym for EBIT

and operating profit. This is true if the firm has no non-operating income.

(Earnings before interest and taxes / Sales)

Profit margin, net margin or net profit margin

Return on equity (ROE)

Return on investment (ROI ratio or Du Pont Ratio)

Liquidity ratios

Liquidity ratios measure the availability of cash to pay debt.

Current ratio (Working Capital Ratio)

Acid-test ratio (Quick ratio)


Cash ratio

Financial Leverage Ratio

Total Debts to Assets

Provides information about the company's ability to absorb asset

reductions arising from losses without jeopardizing the interest of

creditors.

Total Liabilities

Total Assets

Capitalization Ratio

Indicates long-term debt usage.

Long-Term Debt

Long-Term Debt + Owners' Equity

Debt to Equity

Indicates how well creditors are protected in case of the company's

insolvency.

Total Debt

Total Equity

Interest Coverage Ratio (Times Interest Earned)

Indicates a company's capacity to meet interest payments. Uses EBIT

(Earnings Before Interest and Taxes)

EBIT

Interest Expense


Long-term Debt to Net Working Capital

Provides insight into the ability to pay long term debt from current

assets after paying current liabilities.

Long-term Debt

Current Assets - Current Liabilities


Key Financial Ratios of Ashok LeylandMar '11 Mar '10 Mar '09 Mar '08 Mar '07

Investment Valuation Ratios

Face Value 1 1 1 1 1

Dividend Per Share 2 1.5 1 1.5 1.5

Operating Profit Per Share (Rs) 9.15 5.72 3.56 6.05 5.18

Net Operating Profit Per Share (Rs) 85.75 55.9 46.37 59.93 55.59

Free Reserves Per Share (Rs) 18.25 16.1 14.43 14.69 12.79

Bonus in Equity Capital 4.68 4.68 4.68 4.68 4.7

Profitability Ratios

Operating Profit Margin(%) 10.67 10.23 7.66 10.09 9.32

Profit Before Interest And Tax

Margin(%)8.3 7.45 4.72 7.79 7.21

Gross Profit Margin(%) 8.32 7.49 4.77 7.86 9.66

Cash Profit Margin(%) 7.83 7.69 5.77 7.73 7.97

Adjusted Cash Margin(%) 7.83 7.69 5.77 7.73 7.46

Net Profit Margin(%) 5.51 5.66 3.04 5.83 5.94

Adjusted Net Profit Margin(%) 5.51 5.66 3.04 5.83 5.43

Return On Capital Employed(%) 18.6 12.89 8.78 23.12 23.82

Return On Net Worth(%) 23.8 18.27 9.05 22.3 23.58

Adjusted Return on Net Worth(%) 23.72 15.99 8.65 21.12 21.84

Return on Assets Excluding

Revaluations19.94 17.42 15.78 15.82 13.95

Return on Assets Including Revaluations 29.76 27.45 26.04 15.99 14.13

Return on Long Term Funds(%) 18.6 12.89 8.78 23.15 25.51

Liquidity And Solvency Ratios

Current Ratio 1.09 1.22 1.29 1.08 1.12

Quick Ratio 0.53 0.72 0.72 0.6 0.74

Debt Equity Ratio 1 0.98 0.93 0.42 0.34

Long Term Debt Equity Ratio 1 0.98 0.93 0.42 0.25

Debt Coverage Ratios

Interest Cover 5.23 5.83 2.27 8.33 18.81

Total Debt to Owners Fund 1 0.98 0.93 0.42 0.34


Financial Charges Coverage Ratio 6.65 7.83 3.41 10.46 23.55

Financial Charges Coverage Ratio Post

Tax5.76 7.16 3.34 8.74 19.61

Management Efficiency Ratios

Inventory Turnover Ratio 5.86 5.11 5.36 7.9 6.93

Debtors Turnover Ratio 10.34 7.51 9.25 17.74 15.54

Investments Turnover Ratio 5.86 5.11 5.36 7.9 8.29

Fixed Assets Turnover Ratio 1.73 1.25 1.26 2.77 5.43

Total Assets Turnover Ratio 2.19 1.65 1.54 2.7 2.99

Asset Turnover Ratio 1.73 1.25 1.26 2.77 2.86

Average Raw Material Holding 42.33 40.15 44.36 26.49 25.65

Average Finished Goods Held 32.96 36.3 41.55 31.11 28.68

Number of Days In Working Capital 11.53 35.64 42.04 9.83 28.12

Profit & Loss Account Ratios

Material Cost Composition 73.69 74.42 73.82 74.66 75.69

Imported Composition of Raw Materials

Consumed7.04 7.65 5.37 3.7 3.35

Selling Distribution Cost Composition 6.67 7.68 6.98 2.44 2.31

Expenses as Composition of Total Sales 10.31 8.66 15.93 10.19 8.94

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 48.98 54.92 81.91 49.8 51.31

Dividend Payout Ratio Cash Profit 34.4 37.06 42.24 36.11 38.23

Earning Retention Ratio 50.87 37.24 14.36 47.42 43.88

Cash Earning Retention Ratio 65.52 59.53 56.79 62.45 59.16

Adjusted Cash Flow Times 2.96 3.97 5.45 1.43 1.16

Earnings Per Share 4.75 3.18 1.43 3.53 3.33

Book Value 19.97 17.46 15.85 15.99 14.14


2.7 Shareholders

Shareholders are the owners of a company. They have the potential to profit if the

company does well, but that comes with the potential to lose if the company does

poorly.

Shareholding belonging to the category: "Public and holding more than 1% of the

Total No. of Shares"

No. Name of the Shareholder Total Shares heldShares as % of Total

No. of Shares

1 Life Insurance Corporation of India 269,273,442 10.12

2 PCA India Equity Open Ltd 50,294,128 1.89

3

The Master Trust Bank of Japan Ltd as

Trustee of PCA Asia Oceania High

Dividend Equity Mother Fund

56,766,917 2.13

4 Matthews India Fund 38,022,554 1.43

5Reliance Capital Trustee Co Ltd A/c

Reliance Equity Opportunities Fund 34,855,102 1.31

6 Bajaj Allianz Life Insurance Co Ltd 30,407,983 1.14

7 General Insurance Corporation of India 30,150,000 1.13

8 Birla Sun Life Insurance Company Ltd 26,811,162 1.01

Total 536,581,288 20.17

REPORT: - This is the yearly report of Ashok Leyland for last five yearsYearly Report (Amount in Rs. Cr.)

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Sales Turnover 11,117.71 7,244.71 5,981.07 7,729.12 7,168.18

Other Income 15.33 70.45 49.62 74 70.8

Total Income 11,133.04 7,315.16 6,030.70 7,803.12 7,238.98

Total Expenses 9,900.15 6,481.87 5,511.64 6,925.13 6,465.49

Operating Profit 1,217.56 762.84 469.43 803.99 702.69

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 -- -3.27 -13.49 -8.41 -13.08

Tax On Extraordinary Items -- -- -- -- --

Net Extra Ordinary Income/Expenses -- -- -- -- --

Gross Profit 1,232.89 833.29 519.05 877.99 773.49

Interest 163.66 81.13 118.71 49.74 5.33

PBDT 1,069.23 748.89 386.86 819.84 755.08

Depreciation 267.43 204.11 178.41 177.36 150.57

Depreciation On Revaluation Of

Assets-- -- -- -- --

PBT 801.8 544.78 208.45 642.48 604.51

Tax 170.5 121.1 18.45 173.17 163.22

Net Profit 631.3 423.68 190 469.31 441.29

Prior Years Income/Expenses -- -- -- -- --

Depreciation for Previous Years

Written Back/ Provided-- -- -- -- --

Dividend -- -- -- -- --

Dividend Tax -- -- -- -- --

Dividend (%) -- -- -- -- --

Earnings Per Share 4.75 3.18 1.43 3.53 3.33

Book Value -- -- -- -- --

Equity 133.03 133.03 133.03 133.03 132.39

Reserves 2,523.65 2,202.55 1,976.00 1,993.57 1,739.23

Face Value 1.00 1.00 1.00 1.00 1.00


Bibliography

Goel D. K. (2007), Accounting for Management.

http://en.wikipedia.org/ (Financial Ratio)

http://en.wikipedia.org/ (Financial Analysis)

http://www.ashokleyland.com


http://en.wikipedia.org/%20(Financial%20Ratio

http://en.wikipedia.org/%20(Financial%20Ratio

financial analysis by hritvik

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