A REPORT ON

A STUDY ON PAYABLE MANAGEMENT AND TREND

ANALYSIS IN AUTOMOTIVE INDUSTRIES WITH
REFERENCE TO ASHOK LEYLAND Ltd.

SUBMITTED TO

KUMAON UNIVERSITY IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION

SUPERVISED BY: SUBMITTED BY:

Dr. Manoj Negi Rajat Adhikari
Associate Professor Roll No. – 200945250062

Faculty of Commerce and Business Management

Amrapali Group of Institutes
Shiksha Nagar, Lamachaur
Haldwani, Uttarakhand
 CERTIFICATE

This is to certify that Rajat Adhikari of BBA 5th semester has successfully completed the
Internship report entitled “A STUDY ON PAYABLE MANAGEMENT AND TREND
ANALYSIS IN AUTOMOTIVE INDUSTRIES WITH REFERENCE TO ASHOK
LEYLAND Ltd.” is prepared under my guidance and submitted for the award of the degree
of Bachelor of Business Administration as per the requirements of the Kumaon University,
Nainital, Uttarakhand.

Dr. Manoj Singh Negi

Associate Professor
Faculty of Commerce & Business Management
Amrapali Group of Institutes
 Declaration

I, hereby declare that the research project report titled “A STUDY ON PAYABLE
MANAGEMENT AND TREND ANALYSIS IN AUTOMOTIVE INDUSTRIES WITH
REFERENCE TO ASHOK LEYLAND Ltd.” is my own original research work and

this report has not been submitted to any University/Institute for the award of any
professional degree

Rajat Adhikari
BBA 5th semester
Roll No. - 210945250096
Amrapali Group of Institutes
 ACKNOWLEDGEMENT

Learning is a never-ending process. We learn during different stages of life. All my learning
during ASHOK LEYLAND Ltd. would guide me ahead in my career.

With profound respect and gratitude, I take this opportunity convey my thanks to the
management of Ashok Leyland Ltd specially MR. VISHAL SINGH (HR MANAGER) for giving
me the opportunity to complete the training here.

I am extremely grateful to all the management staff ASHOK LEYLAND Ltd for their co-
operation & guidance, which have helped me a lot during the course of training. I have learned
a lot of working with them and I will be indented to them for this value addition in me.

SPECIAL THANKS TO Dr Manoj Singh Negi (Associate Professor). He has been a

constant source of inspection to me throughout the period of this industrial training.

And all the faculty member of FCBM DEPARTMENT for their effort and constant co-
operation has been a significant factor in the accomplishment of my industrial training.

Rajat Adhikari
 PREFACE

For management career, it is important to develop managerial skills. In order to achieve

positive and concrete results, along with theoretical concepts, the exposure of real life situation
existing in corporate world is very much needed. To fulfill this need, this practical training is
required.

I took training in fast growing company ASHOK LEYLAND located in Pantnagar . It was my
fortune to get training in a very healthy atmosphere. I got ample opportunity to view the overall
working of the company.

This report is the result of my seven weeks of summer training in ASHOK LEYLAND , as a
part of B.B.A student. The subject of my report is-the study on marketing practices

In the forthcoming pages, an attempt has been made to present a comprehensive report covering
different aspects of my training.

RAJAT ADHIKARI
TABLE OF CONTENT

Section Title Page Range

Certificate From Institution
Declaration
Certificate From Company
Preface
Acknowledgement
CHAPTER 1
1.1 Introduction 1-6

1.2 Literature Review 6-8

1.3 Objective of the study 8

1.4 Research Methodology 10

1.5 Limitations 11
CHAPTER 2
2.1 Industry Profile 13-16

2.2 Company Profile 17-25

CHAPTER 3
3.1 Data Analysis 27-41
CHAPTER 4
4.1 Findings 43

4.2 Recommendation 44

4.3 Conclusion 45
Bibliography 46
Appendix 47-54
CHAPTER-I
1.1 INTRODUCTION
PAYABLES MANAGEMENT

In contrast to cash payments, a sizeable portion of business purchases of products and services
are made on credit terms. While providers of products and services frequently view credit as a
tool for increasing sales or as a non-price instrument of payment.

The buyer typically views it as a loaning of commodities or inventory because of the

competition. Depending on the type of credit offered, the supplier's credit may also be
referred to as Accounts Payable, Trade Credit, Trade Bill, Trade Acceptance, Commercial
Draft, or Bills Payable. The degree to which this "buy-now, pay-later" option is offered will
depend on several criteria, including the nature, quality, and quantity of the things to be
purchased the price paid, the customary business practices, the level of competition, and the
parties' financial standing. A significant portion of current liabilities in many business
companies is made up of trade credits or payables. Additionally, they typically finance
inventory, which in many cases makes up a sizable portion of current assets.

ACCOUNTS PAYABLE PROCESS

Since almost all payments made by a firm outside of payroll are handled through the accounts
payable process, it is a crucial step in every business. In large companies, the accounts
payable department handles the process. In medium-sized businesses, a small team does it. In
a small business, a bookkeeper or possibly the owner handles it. Just paying genuine and
accurate bills and invoices for the organization is the goal of accounts payable. This means
that before a vendor's invoice is scheduled for payment and recorded in the accounting
records, the accountant must check:

➢ what the business had ordered?

➢ what the business has received?
➢ The correct unit costs, totals, terminology, calculations, etc.

Once, the company receives an invoice the process of payables starts. The process of
Accounts payable is as follows:

➢ Review invoice information: When the company receives the invoicethe very
first step in the process is to check whether the invoice lacks any key information.

1
 An invoice must have the following information:
➢ Billing details
➢ Ordered items
➢ Delivered items
➢ The total number of units
➢ The cost per unit
➢ The total order amounts
➢ Date the invoice was issued
➢ Deadline for payment
➢ Any credits or reductions.

Account Payable Process

If any kind of information is missing the company must contact the supplier for the
missing information. The step is completed when the company enters the data regarding
the same in the software or recording it manually.

➢ Matching Invoice to purchase order and receipt: Once all the data has been
gathered, it must be compared to the initial purchase order and the shipping receipt
to ensure that the amount invoiced corresponds to both the items that were ordered
and those that were delivered. This process, known as three-way matching,
confirms the legitimacy and accuracy of the payment that was received.
➢ Apply discounts, credits, and other adjustments: Applying any agreed-upon

2
 discounts, buyer credits, or purchase changes becomes necessary after the invoice
has been compared to the receipt and purchase order. In most cases, there is already
some knowledge or documentation of discounts and credits because they are
frequently mentioned during the negotiation stage of the purchasing process. Any
additional changes, such as those for missing items, overcharging, or late delivery,
must be valued in order to be considered.
➢ Approve Invoice: The invoice is approved and payment can be released once the
accounts payable section has determined that it is correct, not fraudulent, and
approved it.
➢ Release payment: After the invoice is approved by the company the payment to
the supplier can be released.

Updating the accounts: After the payment is made to the supplier the entry regarding
the same in the books of accounts is to be made by the managers to maintain proper
recording of the expenses the company made while purchasing the goods from the
supplier. The following amountis shown in the balance sheet under the liabilities side as
expenses under current liabilities.

TREND ANALYSIS
Trend Analysis is a business analytical tool used by the company to see the behavior of
a particular company, product, customer, etc. It forms a study of continuing patterns over
a period. It helps to find how the company has behaved in the past years and if there were
any changes in their working, pattern, or method. A technique used for creating future
predictions based on historical data is trend analysis. The process of gathering data from
numerous distinct time periods and projecting it on a horizontal line for analysis is known
as trend analysis (also known as timeseries data analysis). It can identify patterns of the
past and predict the future course of events by analyzing data over a given time period.
It enables comparing data over a specific time frame and detecting uptrends, downtrends,
and sideway trend.

➢ Uptrend: It's a positive trend where the prices are going up or rising over a period of
time. When the direction of price movement consistently creates new high points and

3
 higher low points, we call it an uptrend on a Silver Chart.
➢ Downtrend: A downtrend in the market is
when prices are generally moving in a
direction where they are going down or
falling over a period of time. It's like going
downhill, where the low points keep getting
lower, indicating a negative trend.
➢ Sideway trend: A sideways trend in the
market is when prices are mostly moving
within a range, neither going significantly
up nor down. It's like a flat road where
prices stay relatively stable, not showing a
clear upward or downward trend.

Trend analysis includes:

➢ Market trends are used to analyses data from an entire industry orsector.
➢ Trend data is used to evaluate changes in business performance overtime.
➢ Benchmark data is used to compare companies of similar nature to understand
their customer purchasing pattern and changing needs.

A trend that remains steady and consistent throughout time conveys consistency and
inspires greater confidence than one that is rapidly shifting positions. Trend analysis can
be used to assess the short-term liquidity status of the company and the long-term
solvency of the enterprise. Also, trend analysis can help to find the profitability of the
business over a specific time period using financial data. It displays the long-term
summary of the data. For conducting the trend analysis, the data must not be of 1-2 years
but it must be between 5-10 years to find out the pattern or behavior of the study
conducted. The study is possiblewhen the data is large.

The limitation of this analysis is that it shows a trend that can be possible in the future
but the prediction may turn out to be different. Also, the analysis is done on historical
data which has limited scope for predicting the future. The study may turn out to be
wrong in case of any changes in political, economic, or pandemic.

4
The reason for selecting trend analysis for the study is that it provides the insights into
financial health of the company and provides a direction. The tool basically serves the
purpose of data-driven business strategies that helps analyze the market conditions of the
company’s products and provides a cushion in future uncertainties. It provides an
estimation of the future trend of the company and thus, based on it the company officials
take corrective measures in their favor.

Ratio analysis
Ratio analysis is a quantitative method of gaining insight into a company's liquidity,
operational efficiency, and profitability by studying its financial statements such as the balance
sheet and income statement.

Ratio analysis can mark how a company is performing over time, while comparing a company
to another within the same industry or sector.

Types of Ratio Analysis

The various kinds of financial ratios available may be broadly grouped into the following:

1. Liquidity Ratios
Liquidity ratios measure a company's ability to pay off its short-term debts as they become
due, using the company's current or quick assets. Liquidity ratios include the current ratio,
quick ratio, and working capital ratio.

2. Solvency Ratios
Also called financial leverage ratios, solvency ratios compare a company's debt levels with
its assets, equity, and earnings, to evaluate the likelihood of a company staying afloat over
the long haul, by paying off its long-term debt as well as the interest on its debt. Examples
of solvency ratios include: debt-equity ratios, debt-assets ratios, and interest coverage ratios.

3. Profitability Ratios
These ratios convey how well a company can generate profits from its operations. Profit
margin, return on assets, return on equity, return on capital employed, and gross margin
ratios are all examples of profitability ratios.

5
4. Efficiency Ratios
Also called activity ratios, efficiency ratios evaluate how efficiently a company uses its
assets and liabilities to generate sales and maximize profits. Key efficiency ratios include:
turnover ratio, inventory turnover, and days' sales in inventory .

5. Coverage Ratios
Coverage ratios measure a company's ability to make the interest payments and other
obligations associated with its debts. Examples include the times interest earned ratio and
the debt-service coverage ratio.

6. Market Prospect Ratios

These are the most commonly used ratios in fundamental analysis. They include dividend
yield, P/E ratio, earnings per share (EPS), and dividend payout ratio. Investors use these
metrics to predict earnings and future performance.

6
1.2 Literature Review
In the current economic climate, businesses have to do more with less, regardless of industry.
Organizations can’t afford to miss opportunities to increase working capital. To be successful,
you have to develop a strategy that gives you more flexibility with the cash-strapped on your
balance sheet. Doing so helps to develop the additional liquidity you need to streamline
processes, reduce costs, fund growth, enhance service, and capture new investment
opportunities (Kamukama, 2017). That all begins with effective accounts payable management.
Significant amount of checking, matching work and wide possibilities for mistakes make
invoice handling in accounts payable labour-intensive, though important to consider for any
company. It goes without saying that nowadays it is hard to imagine a successful company
operating without efficient and properly adjusted invoice handling in accounts payable
department. In case correct practices are implemented, company is able to significantly reduce
internal operational costs. In a modern business world where companies are forced to gain
competitive advantage by any means, optimized internal costs could be a crucial factor of
success or failure (Bragg, 2013).
The last but not least point of focus at internal optimization of invoice handling is general
ledger management. First of all, account payable administration should ensure that general
ledger includes all possible coding combinations of all possible business operations. This
guarantees that all procedures would be coded correctly and no disputes would arise during
future audits. Management should also provide standard account code lists to accounts payable
staff as well as to employees from other departments, which are involved in the invoice
handling processes. This increases staff operational productivity as well as reduces amount of
errors made concerning general ledger coding (Bragg, 2013).
Organizational change is crucial to fostering a working capital culture. For a small business, it
can produce significant benefits (Olivier & Esker, 2012). Refining your payables process
improves cash flow prediction accuracy which enables the payable department to set better
budgeting. Ultimately, this positions a company to improve liquidity and helps to mitigate gaps
in funding while making higher profits. Effective accounts payable management can provide
numerous insights to help strengthen your negotiating power and help you partner with better
suppliers (Deloitte, 2015). Utilizing a company’s cash the correct way means extended
payment terms, special holds on inventory, and increased warranty periods.

7
Implementing Strong Governance Practices can be one of the best payables management
strategy (Deloitte, 2015). This will not only strengthen your internal controls but also reduce
manual error around the entire accounts payable process and contract review. Businesses have
to take a more strategic approach to accounts payable management. The accounts payable team,
along with the procurement department needs to collaborate with senior management to
establish a working capital culture across the company (Olivier & Esker, 2012). A great deal of
this comes down to invoice processing. Are invoices being received and processed in a timely
manner? Organizations need to adopt a management strategy that prioritizes the importance of
freeing up working capital through the optimization of payables. While many businesses may
choose to adopt a custom approach, some strategies work across the board (Olivier & Esker,
2012). Successful firms adopt centralized accounts payable management (Tauringana & Afrifa,
2013). By using a shared service environment for processing and reporting, all employees will
adhere to common standards and practices. It also makes it easier to measure everyone’s
performance against established metrics so that a company can accomplish more tasks in a
shorter amount of time using fewer resources (Deloitte, 2015). This approach is ultimately what
reduces costs. Before you can actively manage Average payment period (APP) you need to be
sure your reports are accurate and current. Without this information, many companies don’t
have a clear picture of how much they are spending, how often they pay, and when they pay
their vendors (Tauringana & Afrifa, 2013). This can make it difficult to get the best payment
terms or choosing the right times to make payments.
Good management practices are compulsory to be able to average payment period. Otherwise
it will spread a negative indication to market place which will make tougher to borrow money
from market, share price will seriously effected and so the creditor supplier connection and
eventually the business will be dead after this catastrophic condition the “average payment
period ratio” helps a lot to monitor this situation (Houston, 2009).

8
1.3 OBJECTIVE OF THE STUDY
➢ To understand the payable process procedure of Ashok Leyland.
➢ To study the trend of the company regarding payable management.
➢ To find out the effect of trade payable on the liquidity and profitability of the company.
➢ To evaluate the future cash requirement using trend analysis of the company.

1.4 RESEARCH METHODOLOGY

COLLECTION OF DATA

Data refers to information or facts however it also includes descriptive facts, non-numerical
information, qualitative and quantitative information.

Data could be broadly classified as: -

• Primary Data

• Secondary Data

➢ Primary data:
Primary data is the data collected for the first time through field survey. It is collected with
a set of objectives to assess the current status of any variable studied. Primary data reveals
the cross-section picture of the object under scrutiny. Therefore, primary data are those
collected by the investigator (or researcher) himself for the first time and thus they are
original in character.

Source: The primary data was collected through an oral conversation with my company
guide.

➢ Secondary data:
Secondary data refers to the information or facts already collected. It is collected with

9
 objective of understanding the past status of any variable or the data collected and
reported by some source is accessed and used for the objective of a study. Normally in
research, the scholar collects published data analyse it in order to explain the relationship
between variables.
Source: The data is collected from the company’s financial statements, journals, money
control, research papers.

TOOLS USED

• Trend analysis
• Ratio calculations

PERIOD OF STUDY

The analysis is based on covering the financial statement of Ashok Leyland at Pantnagar, for a
period of forty-five days.

1.5 LIMITATIONS OF THE STUDY

• The data collected for the purpose of my study was past data.
• The future prediction was made based on the past data. The result can differ based on
the economic, political condition of the country and company.
• The internship period imposed constraints on the extent of data collection and analysis.
A more extended study might yield additional insights. The dynamic nature of Trend
Analysis required a balance between thoroughness and timeliness.
• The study is limited to the analysis of the Account Payable management of the
companies.

10
CHAPTER-2

11
2.1 INDUSTRY PROFILE

INTRODUCTION:

The automotive industry in India is one of the main pillars of the economy. With strong
backward and forward linkages, it is a key driver of growth. Liberalization and conscious
policy interventions over the past few years created a vibrant, competitive market, and brought
several new players, resulting in capacity expansion of the automobile industry and generation
of huge employment.

The contribution of this sector to the National GDP has risen to about 7.1% now from 2.77%
in 1992-93. It provides direct and indirect employment to over 19 million people.

In the automobile market in India, Two-wheelers and passenger cars accounted for 77% and
18% market share respectively during the year 2021-22. Passenger car sales are dominated by
small and midsized cars. Export of the total number of automobiles increased from 4,134,047
in 2020-21 to 5,617,246 in 2021-22, registering a positive growth of 35.9%

India aims to double its auto industry size to Rs. 15 lakh crores by end of year 2024. There
has been an FDI inflow of $33.77 billion in the industry from April 2000 till September 2022
which is around 5.48% of the total FDI inflows in India during the same period.

12
MARKET SIZE

The Indian passenger car market was valued at US$ 32.70 billion in 2021, and it is expected
to reach a value of US$ 54.84 billion by 2027 while registering a CAGR of over 9% between
2022-27. The global EV market was estimated at approximately US$ 250 billion in 2021 and
by 2028, it is projected to grow by 5 times to US$ 1,318 billion.

In July 2023, the total production of passenger vehicles*, three wheelers, two wheelers, and
quadricycles was 2.08 units.

In the first quarter of 2023-24*, total production of passenger vehicles, commercial vehicles,
three wheelers, two wheelers, and quadricycles was 6.01 million units.

India accomplished a significant milestone, with the sale of 8,32,434 EVs in 2023-24 (till
August 2023).

The electric vehicle (EV) market is estimated to reach Rs. 50,000 crore (US$ 7.09 billion) in
India by 2025.

A study by CEEW Centre for Energy Finance recognised a US$ 206 billion opportunity for
electric vehicles in India by 2030. This will necessitate a US$ 180 billion investment in
vehicle manufacturing and charging infrastructure.

13
According to NITI Aayog and the Rocky Mountain Institute (RMI), India's EV finance
industry is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) by 2030. A report by the India
Energy Storage Alliance estimated that the EV market in India is likely to increase at a
CAGR of 36% until 2026. In addition, the projection for the EV battery market is expected to
expand at a CAGR of 30% during the same period.

Indian automotive industry is targeting to increase the export of vehicles by five times during
2016-26. In FY23, total automobile exports from India stood at 47,61,487. Indian automobile
exports of two-wheelers stood at 36,52,122 in FY23.

INVESTMENTS

To keep up with the growing demand, several auto makers have started investing heavily in
various segments of the industry during the last few months. The industry attracted Foreign
Direct Investment equity inflow (FDI) worth US$ 34.74 billion between April 2000-March
2023, accounting for 5.45% of the total equity FDI during the period. India is on track to
become the largest EV market by 2030, with a total investment opportunity of more than
US$ 200 billion over the next 8-10 years.

Some of the recent/planned investments and developments in the automobile sector in

India are as follows:

14
 ➢ India accomplished a significant milestone, with the sale of 8,47,439 EVs in FY24 (till
August 2023). A y-o-y growth of 209.17% was witnessed with 1.02 million registered
EVs in FY23, as compared to FY22.
➢ In July 2023, Renault Nissan announced plans to invest US$ 1,68,762.86 (Rs. 1.4
crore) to upgrade infrastructure at eight schools near Chennai.
➢ In July 2023, Mahindra & Mahindra was in advanced talks with British International
Investment (BII) and some other global investors to raise up to US$ 602.72 million
(Rs. 5,000 crore) for its electric vehicles (EV) unit.
➢ In June 2023, Tata Motors announced to invest US$ 2 billion towards developing new
products and platforms over the next four years.
➢ In June 2023, Hero MotoCorp revealed plans to invest up to US$ 180.81 million (Rs.
1,500 crore) for developing premium bikes and EVs in India.
➢ In June 2023, Kinetic Green Energy and Power Solutions revealed plans to raise up to
US$ 100 million by selling a 10-15% stake in the company to investors.
➢ In May 2023, Maruti Suzuki India revealed plans to invest over US$ 5.5 billion to
double capacity by 2030.

WAY FORWARD:

The Indian Automotive industry has made great strides over the past two decades, capturing
the eye-balls at a global level and is considered as a contender for a top-table position. In
terms of global rankings in manufacturing output, it is second largest in two-wheelers,
seventh largest in commercial vehicles, sixth largest in passenger vehicles and the largest in
tractors. Over the past ten years, India has emerged as one of the most preferred locations in
the world for manufacturing high-quality automotive components and vehicles of all kinds,
narrowing its gap over several established locations in the process.

Over the next decade, the automotive industry is likely to see some significant
transformations at a global level. Principal transformations being the shift of growth in
demand for automobiles from developed nations to developing nations (mainly BRICS); a
dramatic increase in the share of electronics in automobiles, making them a “computer on
wheels and connected to the Internet”; a relentless pursuit of economies of scale and scope in
design and engineering of automobiles and components, while also pursuing low-cost
manufacturing destinations.

15
2.2 COMPANY PROFILE

Company History

Ashok Leyland Ltd is the 2nd largest manufacturer of commercial vehicles in India the 4th
largest manufacturer of buses in the world and the 12th largest manufacturer of trucks
globally. The company's products include buses trucks engines defence and special vehicles.
From 18 seaters to 82 seaters double-decker buses from 7.5 ton to 49 ton in haulage vehicles
from numerous special application vehicles to diesel engines for industrial marine and genset
applications Ashok Leyland offers a range of products. The company is the flagship of the
Hinduja Group. Headquartered in Chennai India Ashok Leyland's manufacturing footprint
spreads across the globe with 9 plants; including one each at Great Britain and Ras Al
Khaimah (UAE). The company's Joint Venture partners include John Deere (USA) for
Construction Equipment Continental AG (Germany) for Automotive Infotronics and the AL
teams Group for the manufacture of high-press die-casting extruded aluminium components
for the automotive and telecommunications sectors.

16
Ashok Leyland Ltd was incorporated in the year 1948 with the name Ashok Motors. The
company was set up in collaboration with Austin Motor Company England for the assembly
of Austin cars.

Hinduja Group

In 2007, the Hinduja Group bought out Iveco's indirect stake in Ashok Leyland. The
promoter shareholding now stands at 51%. Today the company is the flagship of the Hinduja
Group, a British-based and Indian originated trans-national conglomerate.

Ashok Leyland launched India's first electric bus and Euro 6 compliant truck in 2016.

In June 2020, Ashok Leyland launched its new range of modular trucks, AVTR.

In September 2020, Ashok Leyland launched the Bada Dost based on its indigenously
developed LCV platform called Phoenix.

Vision

The vision of Ashok Leyland is to be among top Indian corporation acknowledged nationally
and internationally for-

➢ Excellence in quality of its products.

➢ Excellence in customer focus and services.

Mission

Be a leader in the business of commercial vehicles excelling in technology quality value to

customer fully supported by customer service of the highest order & meeting nationally and
international environment and safety standards.

Technology used in Ashok Leyland ltd

The history of the company has been punctuated by a number of technological

innovations. Ashok Leyland was the first to introduce multi-axle trucks, full air brakes
and a host of innovations like the rear engine and articulated buses in India. In 1997, the
17
company launched the country’s first CNG bus and in 2002. In 2002 they developed the
first hybrid electric vehicle.

Ashok Leyland at Pantnagar (Uttarakhand)

Using the latest technology and processes, this fully-integratedplant (established in

2010) manufactures all future-gazing products across trucks and buses. Spread over 200
acres of land and with an annual capacity of 70,000 vehicles, the plant also
produces aggregates such as engines, gear-boxes, and axles. Pantnagar Plant recently
launched BOSS and CAPTAIN, which are class-leading products.

Capital model Boss model

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 Assembly Unit Manufacturing of Bus

Current Scenario of Ashok Leyland:

Ashok Leyland reported a 10 percent increase in total sales at 12,974 units in April 2023,
as compared to last year. The company registered total sales of 11,847 units last year.
Domestic sales also increased by 10 percent to 12,366 units, as compared to 11,197 units
in April 2022. Exports were marginally down at 608 units as compared to 650 units in
the year-ago period.

Ashok Leyland Share Price- 146.652.15 (1.49%)

Volume: 71,29,440

Market Share of Ashok Leyland:

Leading truck and bus maker Ashok Leyland, which has reported strong growth in profit
and revenue for the September 2022 quarter, seeks to maintain its market share of 30

19
percent plus in the medium and heavy commercial vehicle (M&HCV) market, supported
by acceptance of its new product range, plugging of gaps in its portfolio and network.

Ongoing New Projects:

➢ Battery Electric Vehicle.

➢ Hydrogen Internal Combustion Engine (ICE) Vehicle.
➢ Liquefied Natural Gas Vehicle.
➢ Intercity CNG Bus.
➢ A mini-passenger bus.

Ashok Leyland different from Others:

It was the first in India to introduce multi-axled trucks, full air brakes and innovations
like the rear engine and articulated buses. In 1997, the company launched the country's
first CNG bus, and in 2002 developed the first hybrid electric vehicle. The USP of our
products have low maintenance cost and are highly reliable and durable. Ashok Leyland
offers vehicles both in cowl and fully built versions. The cowl versions are designed to
the same levels of standards and have the added advantage of customers building the
body customized to their requirements.

20
 New Tractors Model

New Haulage Model

ICV Distribution

FUNCTIONAL AREAS:
The major functional areas of the unit and the major
departments which oversee those areas are catalogued as
follows:
a) HR Department
b) Finance Department
c) Marketing Department
d) Production Department.

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a) HUMAN RESOURCE DEPARTMENT
HUMAN RESOURCE MANAGEMENT
Human resource management is defined as the managing function of employees,
developing and compensating HR resulting in creation and development of human
relations with the view to contribute proportionately to the organizational, individual and
social goal.
VALUE STATEMENT
“We consider our employees as our most valuable asset and are committed to provide full
encouragement and support to them, to enhance their potential and contribution to the
company’s business”.

b) FINANCE DEPARTMENT
A company's finance department serves a fundamental role in making financial decisions for
internal and external affairs. A business’s activities depend on the competence of a company’s
finance department and the individuals who comprise it. A finance department is organized
by, and runs according to, specific roles and duties.

Jobs within a finance department

Accountant: An accountant prepares financial statements and documents monetary

transactions and income statements. The accountant role has a seniority hierarchy, with
the accounting manager being the topmost in the ranks.

Auditor: The auditor's primary role is to evaluate the documents prepared by the rest of the
teams and authenticate their accuracy. They identify all insufficiencies and mistakes for
accountability.

Budget analyst: The budget analyst is skilled in preparing and maintaining a balanced budget
throughout the year. They plan for the future financial responsibilities of the business.

Finance controller: Also referred to as comptroller, they oversee the activities performed by
other finance roles, such as auditing and accounting. The finance controller audits and
prepares financial reports on tax compliance and risk management, among other financial
documents.

22
Finance administrator: The finance administrator helps plan and verify business documents
for completeness. They also manage cash flows, prepare budgets and present reports to
management for advisory and accountability purposes.

Payroll officer: Payroll officers prepare documentation related to employees' salaries,

taxation, commissions and any other benefit for timely and accurate payment.

Treasury analyst: A treasury analyst analyses the transaction and investment accounts to
evaluate expenses and advise management on how they can best minimize costs.

c) MARKETING DEPARTMENT
Marketing departments are often responsible for a wide variety of business and marketing
tasks. This team plans, creates and distributes the promotion for an organization. They may
also take on other business and image-related responsibilities. To function in the most
efficient manner possible, marketing teams may divide their responsibilities into different
positions. Each of these individuals helps the marketing department to perform well and
therefore plays an important role in the overall function of the organization. A few different
positions that may make up a marketing department include:

Chief marketing officer: This position, also known as CMO, oversees all other marketing
personnel and helps drive all brand and promotion strategies.

Vice president of marketing: The VP of marketing supports the CMO's efforts to oversee the
branding and marketing efforts and strategy of the company overall.

Director of marketing: This individual works to develop and manage new projects, from
research and development to completion. This may involve work regarding budget, schedule
and project team.

Marketing manager: This individual may oversee the business side of the marketing
department, working to budget and market research to help create an efficient plan. They may
also hire and delegate to more junior positions.

Brand manager: A brand manager maintains the image of the company. They ensure that the
branding choices are effective and that they match the company's values.

23
d)PRODUCTION DEPARTMENT

Production is an organized process of

manufacturing/producing goods and services through the use
of input resources of men, materials, money, machine, methods.
Production management strategies:
➢ Long range strategies
➢ Effective management of technology.
➢ Innovation in product management and process
➢ technology.
➢ Globalization in industry.
➢ Goodwill inside and outside the organization.
➢ An aggressive marketing strategy and risk taking ability.

Short range strategies

➢ Location and layout.
➢ Product selection and technology.
➢ Capital selection and investment.
➢ Flexible strategy of production.
➢ Standardization of design.
➢ Economy of size and variety.
Production system:
Ashok Leyland employs a continuous production system, making
use of special purpose machines and produces standardized
items in large quantities.

Characteristics
➢ Standard products are manufactured.
➢ Small work in progress in involved.
➢ More maintenance is required.
➢ Minimum cost of production per unit
➢ Division of labour is made more efficient.

24
CHAPTER-3

25
3.1 DATA ANALYSIS AND
INTERPRETATION

Ratio Analysis:

➢ Creditors turnover ratio: It measures how many times the company pays to their
creditors/ suppliers in an accounting year. The frequency of payment is calculated here.

Formula:

NET CREDIT PURCHASES / AVERAGE ACCOUNT CREDITORS

Average
Net Credit
Accounts Ratio in
Year Purchases
Payable times
(Crore)
(crore)

2018-19 19218.26 4953.41 3.87

2019-20 21598.61 3821.41 5.65

2020-21 13345.92 3894.3 3.42

2021-22 12047.28 6019.96 2.00

2022-23 17613.27 7025.17 2.50

26
 CLOSING
AVERAGE
OPENING TRADE TRADE
TRADE
PAYABLES (crore) PAYABLES
PAYABLES
YEAR (crore)

2018-19 4887.90 5018.93 4953.41

2019-20 5018.93 2623.91 3821.41

2020-21 2623.91 5164.69 3894.3

2021-22 5164.69 6875.23 6019.96

2022-23 6875.23 7175.12 7025.17

GRAPH:

25000 6
21598.61
19218.26 5
20000
17613.27
4
15000 13345.92
12047.28
3
10000
7175.12 2
6019.96
4953.41
5000 3821.41 3894.3
1

0 0
2018-19 2019-20 2020-21 2021-22 2022-23

Net credit Purchases Average Accounts Payable

Ratio on times Linear (Ratio on times)

INTERPRETATION: The creditors turnover ratio depicts the number of times the company
pays its debt in a year. A high creditor turnover ratio depicts the company has enough cash
flow in the business to pay off its short-term debt to its creditors. A high ratio is an indication
of better cash management in the company.

27
 The graph shows a downward-sloping line that shows the company has decreased cash flow
over the years. Using the linear trend analysis, depicted by the red dotted line it can be
interpreted that the cash requirement of the company over the years has declined, and in
the future years, they need to manage their cash balance in order to timely pay off their
short-term obligations. The red dotted line is cutting the net credit purchases which show
that the purchases were higher as compared to the cash balance. The trend line is downward
sloping from left to right depicting that over the years the ratio will decrease leading to a
cash shortfall.

➢ Average payment period: The days payable outstanding (DPO) ratio, which evaluates a
company's solvency, monitors how long it takes a corporation to pay its short-term
liabilities, particularly for purchases it makes on credit. The average payment term is a
crucial financial indicator used by firms to assess how effectively they settle their debts
quickly.

Formula:

AVERAGE PAYMENT PERIOD :365/CREDITOR TURNOVER RATIO

TABLE

Average Average
Net Credit Creditor
Accounts Payment
Year Purchases Turnover
Payable Period (Days)
(Crore) Ratio
(crore)

2018-19 19218.26 4953.41 3.87 94.31

2019-20 21598.61 3821.41 5.65 64.6

2020-21 13345.92 3894.3 3.42 106.72

2021-22 12047.28 6019.96 2.00 182.5

2022-23 17613.27 7025.17 2.50 146

28
INTERPRETATION: The average payment period is calculated by (94+65+107+183+146/5)
which is equal to 119 days approximately. Thus, we can say that the average pay-off time of
short-term debt is within a period of 3.9 months. For the years 2019-20, the payment period is
less than the average payment period which is an indication that the company pays off its debt
on time to the suppliers.

The dotted linear trend line is an indication that the company over the years has increased
its payment period days from 2.6 months to 5.3 months. The company takes a longer time
to pay off its bills thus, will have more cash available for other purposes.

Average Payment Period

25000 200
182.5 180
20000 160
146 140
15000 120
106.72
100
94.31
10000 80
64.6 60
5000 40
20
0 0
2018-19 2019-20 2020-21 2021-22 2022-23

Net Credit Purchases (Crore) Average Accounts Payable (crore)

Average Payment Period (Days) Linear (Average Payment Period (Days))

➢ INTEREST COVERAGE RATIO: A financial statistic called the Interest Coverage

statistic (ICR) is used to assess a company's ability to pay the interest on its existing
obligations. Lenders, creditors, and investors frequently use the ICR to assess how risky it
is to lend money to a business. The "times interest earned" ratio is another name for the
interest coverage ratio.

29
FORMULA:

EBIT/ INTEREST EXPENSES

Interest Expenses Interest

Year EBIT (crore)
(crore) Coverage Ratio

2018-19 4373.90 1502.24 2.91

2019-20 2540.81 1801.65 1.41

2020-21 1833.56 1900.64 0.96

2021-22 1669.46 1869.05 0.89

2022-23 4362.09 2093.5 2.08

Interest Coverage Ratio

5000 3.5
4500
3
4000
3500 2.5
3000 2
2500
2000 1.5

1500 1
1000
0.5
500
0 0
2018-19 2019-20 2020-21 2021-22 2022-23

EBIT (crore) Interest Expenses (crore)

Interest Coverage Ratio Linear (Interest Coverage Ratio)

INTERPRETATION: Interest coverage ratio depicts the payment of interest on their

borrowing. The company with a higher ratio is efficient because it means that the company can
pay all its debt and related interest on time. The interest coverage ratio is linked with the EBIT
of the company. If the company earns a profit in the year, it will be able to settle off its debt
and interest payments. The graph above shows that the company had positive EBIT for the

30
years 2018-2020 but later the company incurred losses. Thus, the graph over the years shows
that the company had less income over the past years, and because of that, the company had a
downward-sloping interest coverage ratio. Considering the trend line, it is evident that the
earning of the company had declined, and the interest coverage ratio from 2.91 to 0.89 the ratio
has decreased. Thus, the cash availability in the company declined and because of it the interest
coverage ratio has declined.

➢ CASH RATIO: The ability of a corporation to pay off short-term debt commitments with
its cash and cash equivalents is measured by the cash ratio, also known as the cash-asset
ratio. The cash ratio is a stricter, more conservative metric than other liquidity ratios like
the current ratio and quick ratio since it only considers a company's most liquid assets, cash,
and cash equivalents.
➢
FORMULA:

CASH AND CASH EQUIVALENT / TOTAL CURRENT LIABILITIES

TABLE

Cash and cash

Total Current
Year equivalents Cash Ratio
Liabilities (crore)
(crore)

2018-19 1373.59 8788.96 0.15

2019-20 1322.47 6998.93 0.18

2020-21 822.95 8273.84 0.09

2021-22 1046.96 9547.29 0.11

2022-23 501.29 11072.8 0.04

31
GRAPH

Cash Ratio
12000 0.2
0.18
10000
0.16
0.14
8000
0.12
6000 0.1
0.08
4000
0.06
0.04
2000
0.02
0 0
2018-19 2019-20 2020-21 2021-22 2022-23

Cash and cash equivalents (crore) Total Current Liabilities (crore) Cash Ratio

INTERPRETATION: Cash is needed to run a business and to pay the company’s obligations.
The above graph shows the cash and cash equivalent over the years. Initially, the cash inflow
has increased but overtime it shows the declining trend. The declining cash is an indication that
the company was not able to pay off its creditors and hence the interest coverage ratio showed
a negative balance above. The company finances are linked to the impact of one impact on the
other. In this case company’s lower cash impacted the liability to pay off its creditors. Due to a
lower cash inflow in the business, the average credit period was also increased from 94 days to
146 days. Thus, a lower cash ratio is an indication that the company is not able to pay off its
suppliers on time. Since it is a ratio between debt and cash a higher cash ratio is considered
good for business.

32
➢ DEBT RATIO: When calculating the total assets and comparing them to the total debt
owed by the company, the debt ratio accounts for both short-term and long-term assets.
This gives a clear idea of how much leverage a company has. Divide total debt by total
assets to calculate a company's debt ratio. Total assets include current, fixed, and intangible
assets (such as property, equipment, goodwill, etc.) while total debt includes a company's
short- and long-term liabilities (such as lines of credit, and bank loans).

FORMULA:

TOTAL DEBT / TOTAL ASSETS

TABLE

Total Debt Total Assets

Year Debt Ratio
(crore) (crore)

2018-19 9891.97 18224.4 0.54

2019-20 9125.62 16389.91 0.55

2020-21 11472.71 18449.91 0.62

2021-22 12996.88 20333.78 0.63

2022-23 14165.83 22591.63 0.62

33
GRAPH

Chart Title
16000 0.66

14000 0.64

0.62
12000
0.6
10000
0.58
8000
0.56
6000
0.54
4000
0.52
2000 0.5

0 0.48
2018-19 2019-20 2020-21 2021-22 2022-23

Total Debt (crore) Total Debt (crore)2 Debt Ratio Linear (Debt Ratio)

25000
20000
15000
10000
5000
0
2018-19 2019-20 2020-21 2021-22 2022-23

Total Debt (crore) Total Assets (crore) Series 3

INTERPRETATION: A higher debt Ratio depicts higher debt over assets in a company. If the
Ratio is over 1, a company has more debt than assets. If the ratio is below 1, the company has
more assets than debt. In general, many inverters look for a company to have a debt ratio
between 0.3 to 0.6. From a pure risk perspective, debt ratios of 0.4 or lower are considered
better, while a debt ratio of 0.6 or higher makes it more difficult to borrow money. Graph1
clearly shows that over the years the debt obligation of the company has increased leading to a
higher debt ratio but the condition is favourable. As shown in graph 2 the line graph depicts
the total debt and total assets of the company over 5 years. The debt component in the company

34
is always less than the assets. Thus, it is evident that the company has good financial health.
The company is able to manage its production without borrowing much from outside funds.

➢ WORKING CAPITAL RATIO OR CURRENT RATIO: The money a business needs

for short-term running expenses is known as working capital. Any assets or liabilities that
must be settled within a year are deemed to be "short-term" assets. Working capital differs
from longer-term investments in fixed assets due to its short-term nature. The working
capital ratio is a liquidity indicator that shows whether a company can meet its financial
obligations. The ratio illustrates a company's ability to cover its current liabilities with its
current assets by comparing its current assets to its current liabilities.

FORMULA:

CURRENT ASSETS / CURRENT LIABILITIES

TABLE

Current Assets Current Liabilities Working

Year
(crore) (crore) Capital Ratio

2018-19 8186.34 8788.96 0.93

2019-20 5423.49 6998.93 0.77

2020-21 7451.53 8273.84 0.90

2021-22 9521.81 9547.29 0.99

2022-23 11703.62 11072.80 1.05

35
 Chart Title
14000 1.2

12000 1

10000
0.8
8000
0.6
6000
0.4
4000

2000 0.2

0 0
2018-19 2019-20 2020-21 2021-22 2022-23

Current Assets (crore) Current Liabilities (crore)

Working Capital Ratio Linear (Working Capital Ratio)

CA and CL
14000

12000

10000

8000

6000

4000

2000

0
2018-19 2019-20 2020-21 2021-22 2022-23

Current Assets (crore) Current Liabilities (crore)

INTERPRETATION: The working capital ratio depicts the portion of current assets over
current liabilities. The healthy working capital ratio is 1.2 to 2. Graph 1 shows the working
capital trend that has increased in the years. The dotted linear trend line is indicating that the
current assets over the years have increased as compared to current liabilities. This has led to a
increase in the working capital ratio and an decrease in the cash required to pay off its short-

36
term debt. But still the company lacks sufficient liquid assets to satisfy the short term liabilities.
A low ratio indicates that the company has obligations to pay its creditors. Having fewer current
assets company is not able to convert its current asset to cash. Thus, the company needs to
maintain a higher cash reserve in order to pay its suppliers. It is a clear indication of the
company’s short-term financial health and depicts the amount of cash that they need to maintain
for the same. Graph 2 clearly depicts that over a period of 5 years, the company increased its
current assets but still the company have to increase its current assets. Thus, going as per trend
analysis the company needs to maintain a higher cash reserve to maintain a higher profitability
and liquidity in the business.

37
38
INTREPRETATION:

Using trend analysis, the net purchases, average trade payables, and, the payment ratio
for the next five are calculated by Excel function. The three tables shown above show the
estimated purchases, trade payables, and payment ratio for the next five years. It is clearly
seen over the span of 2024-2028 the net purchases are going to decrease and the trade
payables are going to increase. The tool used to calculate the trend over the next five
years uses the previous year’s data and the calculation is made based on it. The payment
period has also increased from an average 146 to 286 days in the coming years.

Analysis:

From the tables above it is clear that a decrease in net purchases of the company implies
fewer creditors therefore, less cash reserve needs to be maintained by the company or the
excess cash can be invested for a short period for future earnings. An increase in the
payment ratio implies that the company is keeping funds and investing in other
opportunities and because of it is taking time to convert the payment period into cash.
Having a higher payment ratio is an indication of higher future profitability and liquidity
in the business in the coming years.

39
 Net Purchases and Tradepayable
25000

20000

15000

10000

5000

0
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Net credit Purchases AverageAccounts payable (crore)

Linear (Net credit Purchases) Linear (AverageAccounts payable (crore))

Analysis:

Looking at graph it is seen that the net purchases over the next five years will decline and the
average trade payables will increase. The dotted linear trend line is a clear indication that the
company over the years the company’s cash requirement will be less. The shortage of cash
currently will be met by the company in the future years. As graph shows that over the years
the net purchases are inclining with the trade payables thus the company’s expenses are met
and in coming years there will be no shortage of cash. This may lead to increase in profitability
and liquidity of the company.

40
CHAPTER-4

41
4.1 FINDINGS

➢ The average credit payment period of the company is 119 days and the company is taking
a longer time to settle off its short-term debt.
➢ The company had negative EBT for the years 2021,2022 which affected the company’s
payment cycle.
➢ Due to negative earnings in the years the credit payment cycle days have increased over 94
days to 146 days in those years.
➢ In the first three years (2018-2020) earnings of the company were sufficient in funding its
operations.
➢ The negative earnings for the years 2021 and 2022 impacted the cash flow and the
operations of the business.
➢ The company saw an upward trend in average payables over the coming years.
➢ Study conducted through trend analysis depicts that over the coming years, the company’s
net purchases are going to decrease due to which the cash will not be lost and can be used
for investment purposes in the short term.
➢ Over the years, the current assets tend to be more as compared to current liabilities.

42
4.2 RECOMMENDATIONS

➢ Payables of the company are an important aspect in maintaining the liquidity and
profitability of the company. The company needs to maintain a high credit turnover ratio
which is currently declining.
➢ It is recommended to have a high working capital ratio which is currently declining in the
business. It means that the company has more short-term debt over current assets which
impacts the company’s liquidity and profitability.
➢ Using the trend analysis, it is found that the company has a credit payment period that needs
to be low in order to maintain good relations with the suppliers.
➢ Proper and effective monitoring of cash is important since the company suffered a loss in
the previous two years.
➢ Net purchases are decreasing which means company is self-reliant. So, they should try and
improve their performance.

43
4.3 CONCLUSION

Ashok Leyland is one of the leading companies in the manufacturing of heavy vehicle industry.
The company’s vehicles have built a reputation for reliability and ruggedness. The blueprint of
the company has reflected global standards and the global market reach of the company.

The company’s liquidity and profitability are currently negatively impacted due to losses in the
years. Trade payables play a vital role in it. The liquidity and profitability are linked with the
creditors of the company. The higher the time period company takes off its debt more cash is
available with the company for investments. Less turnover ratio can sometimes negative for
the company as it impacts its relations with suppliers. Moreover, in long-term debt, the interest
payment needs to be made which in turn requires more cash by the company which impacts
the liquidity in the business. Thus, managing the trade payable in any organization is
mandatory.

The company is performing on average. In the past two years, the company suffered a net loss
but such a big company like Leyland can easily manage their losses. It is observed that potential
growth will be implicated through effective planning. It has the advantage of being the second-
largest in-production commercial vehicle in India. However, proper strategy and risk
management will lead to profitability.

44
BIOBLIOGRAPHY

• Money Control

• Scanner

• Company's website- https://www.ashokleyland.com/in/en

• Research Papers

• Articles through Academia, Scribd

• https://www.moneycontrol.com/financials/ashokleyland/balance-
sheetVI/AL
• https://www.equitymaster.com/research-it/annual-results-
analysis/ASOK/ASHOK-LEYLAND-2020-21-Annual-Report-
Analysis/1093
• https://www.researchgate.net/profile/Chimsunum-
Osanebi/publication/333867498_The_Impact_of_Credit_Manageme
nt_Strategies_on_Liquidity_and_Profitability/links/6294de4ec660ab
61f852a118/The-Impact-of-Credit-Management-Strategies-on- Liquidity-
and-Profitability.pdf

45
ANNEXURE
Balance Sheet

BALANCE SHEET OF ASHOK MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

LEYLAND (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 293.61 293.55 293.55 293.55 293.55

TOTAL SHARE CAPITAL 293.61 293.55 293.55 293.55 293.55

Reserves and Surplus 8,094.32 7,043.35 6,683.65 6,947.25 8,031.75

TOTAL RESERVES AND 8,094.32 7,043.35 6,683.65 6,947.25 8,031.75

SURPLUS

TOTAL SHAREHOLDERS 8,425.80 7,336.90 6,977.20 7,263.99 8,332.43

FUNDS

NON-CURRENT LIABILITIES

Long Term Borrowings 1,766.23 2,850.61 2,558.01 1,353.86 298.40

Deferred Tax Liabilities [Net] 503.51 144.36 384.29 264.82 249.73

Other Long Term Liabilities 304.07 254.41 67.00 327.32 305.25

Long Term Provisions 519.22 200.21 189.57 180.69 249.63

TOTAL NON-CURRENT 3,093.03 3,449.59 3,198.87 2,126.69 1,103.01

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 1,413.87 656.49 1,158.24 1,710.97 100.00

Trade Payables 7,175.12 6,875.23 5,164.69 2,623.91 5,018.93

46
Other Current Liabilities 1,964.49 1,545.32 1,485.95 2,039.20 2,867.26

Short Term Provisions 519.32 470.25 464.96 624.85 802.77

TOTAL CURRENT 11,072.80 9,547.29 8,273.84 6,998.93 8,788.96

LIABILITIES

TOTAL CAPITAL AND 22,591.63 20,333.78 18,449.91 16,389.61 18,224.40

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 4,984.83 5,273.70 5,599.20 5,443.12 4,805.98

Intangible Assets 1,319.32 1,327.20 1,451.19 1,360.45 808.53

Capital Work-In-Progress 48.95 111.11 228.78 420.97 274.64

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 6,436.67 6,795.17 7,422.24 7,397.71 6,272.13

Non-Current Investments 3,892.18 3,521.58 3,068.72 2,719.63 2,636.50

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00

Long Term Loans And 0.00 0.00 20.50 32.42 31.71

Advances

Other Non-Current Assets 559.16 495.22 486.92 816.36 1,097.72

TOTAL NON-CURRENT 10,888.01 10,811.97 10,998.38 10,966.12 10,038.06

ASSETS

CURRENT ASSETS

Current Investments 2,771.42 1,298.05 0.00 0.00 0.00

Inventories 2,774.48 2,075.20 2,142.29 1,238.00 2,684.67

Trade Receivables 4,062.08 3,111.02 2,816.00 1,179.82 2,505.53

Cash And Cash Equivalents 501.29 1,046.96 822.95 1,322.47 1,373.59

47
Short Term Loans And 0.00 0.00 20.62 23.00 22.46
Advances

OtherCurrentAssets 1,594.35 1,990.58 1,649.67 1,660.20 1,600.09

TOTAL CURRENT ASSETS 11,703.62 9,521.81 7,451.53 5,423.49 8,186.34

TOTAL ASSETS 22,591.63 20,333.78 18,449.91 16,389.61 18,224.40

OTHER ADDITIONAL
INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS

Contingent Liabilities 1,588.58 1,314.80 0.00 856.79 927.91

CIF VALUE OF IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares And Loose 0.00 0.00 0.00 0.00 0.00

Tools

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE IN FOREIGN
EXCHANGE

Expenditure In Foreign 210.44 166.28 0.00 168.97 237.47

Currency

REMITTANCES IN FOREIGN
CURRENCIES FOR
DIVIDENDS

Dividend Remittance In Foreign -- -- -- -- --

Currency

EARNINGS IN FOREIGN
EXCHANGE

FOB Value Of Goods 1,792.19 1,440.25 -- 1,389.56 1,486.88

Other Earnings -- -- -- -- 74.58

48
BONUS DETAILS

Bonus Equity Share Capital 139.26 139.26 139.26 139.26 139.26

NON-CURRENT
INVESTMENTS

Non-Current Investments -- -- -- -- --
Quoted Market Value

Non-Current Investments 3,891.61 3,521.01 -- 2,719.06 2,635.93

Unquoted Book Value

CURRENT INVESTMENTS

Current Investments Quoted -- -- -- -- --

Market Value

Current Investments Unquoted 2,771.42 1,298.05 -- -- --

Book Value

BALANCE SHEET OF ASHOK MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

LEYLAND (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 293.61 293.55 293.55 293.55 293.55

TOTAL SHARE CAPITAL 293.61 293.55 293.55 293.55 293.55

Reserves and Surplus 8,094.32 7,043.35 6,683.65 6,947.25 8,031.75

TOTAL RESERVES AND 8,094.32 7,043.35 6,683.65 6,947.25 8,031.75

SURPLUS

TOTAL SHAREHOLDERS 8,425.80 7,336.90 6,977.20 7,263.99 8,332.43

FUNDS

NON-CURRENT LIABILITIES

Long Term Borrowings 1,766.23 2,850.61 2,558.01 1,353.86 298.40

49
Deferred Tax Liabilities [Net] 503.51 144.36 384.29 264.82 249.73

Other Long Term Liabilities 304.07 254.41 67.00 327.32 305.25

Long Term Provisions 519.22 200.21 189.57 180.69 249.63

TOTAL NON-CURRENT 3,093.03 3,449.59 3,198.87 2,126.69 1,103.01

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 1,413.87 656.49 1,158.24 1,710.97 100.00

Trade Payables 7,175.12 6,875.23 5,164.69 2,623.91 5,018.93

Other Current Liabilities 1,964.49 1,545.32 1,485.95 2,039.20 2,867.26

Short Term Provisions 519.32 470.25 464.96 624.85 802.77

TOTAL CURRENT LIABILITIES 11,072.80 9,547.29 8,273.84 6,998.93 8,788.96

TOTAL CAPITAL AND 22,591.63 20,333.78 18,449.91 16,389.61 18,224.40

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 4,984.83 5,273.70 5,599.20 5,443.12 4,805.98

Intangible Assets 1,319.32 1,327.20 1,451.19 1,360.45 808.53

Capital Work-In-Progress 48.95 111.11 228.78 420.97 274.64

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 6,436.67 6,795.17 7,422.24 7,397.71 6,272.13

Non-Current Investments 3,892.18 3,521.58 3,068.72 2,719.63 2,636.50

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00

Long Term Loans And 0.00 0.00 20.50 32.42 31.71

Advances

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Other Non-Current Assets 559.16 495.22 486.92 816.36 1,097.72

TOTAL NON-CURRENT 10,888.01 10,811.97 10,998.38 10,966.12 10,038.06

ASSETS

CURRENT ASSETS

Current Investments 2,771.42 1,298.05 0.00 0.00 0.00

Inventories 2,774.48 2,075.20 2,142.29 1,238.00 2,684.67

Trade Receivables 4,062.08 3,111.02 2,816.00 1,179.82 2,505.53

Cash And Cash Equivalents 501.29 1,046.96 822.95 1,322.47 1,373.59

Short Term Loans And 0.00 0.00 20.62 23.00 22.46

Advances

OtherCurrentAssets 1,594.35 1,990.58 1,649.67 1,660.20 1,600.09

TOTAL CURRENT ASSETS 11,703.62 9,521.81 7,451.53 5,423.49 8,186.34

TOTAL ASSETS 22,591.63 20,333.78 18,449.91 16,389.61 18,224.40

OTHER ADDITIONAL
INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS

Contingent Liabilities 1,588.58 1,314.80 0.00 856.79 927.91

CIF VALUE OF IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares And Loose 0.00 0.00 0.00 0.00 0.00

Tools

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE IN FOREIGN
EXCHANGE

51
Expenditure In Foreign 210.44 166.28 0.00 168.97 237.47
Currency

REMITTANCES IN FOREIGN
CURRENCIES FOR
DIVIDENDS

Dividend Remittance In Foreign -- -- -- -- --

Currency

EARNINGS IN FOREIGN
EXCHANGE

FOB Value Of Goods 1,792.19 1,440.25 -- 1,389.56 1,486.88

Other Earnings -- -- -- -- 74.58

BONUS DETAILS

Bonus Equity Share Capital 139.26 139.26 139.26 139.26 139.26

NON-CURRENT
INVESTMENTS

Non-Current Investments -- -- -- -- --
Quoted Market Value

Non-Current Investments 3,891.61 3,521.01 -- 2,719.06 2,635.93

Unquoted Book Value

CURRENT INVESTMENTS

Current Investments Quoted -- -- -- -- --

Market Value

Current Investments Unquoted 2,771.42 1,298.05 -- -- --

Book Value

52
Cash Flow Statement:

CASH FLOW OF ASHOK MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

LEYLAND (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

NET PROFIT/LOSS BEFORE 1,361.66 -285.45 -69.60 459.80 2,194.60

EXTRAORDINARY ITEMS AND
TAX

Net CashFlow From Operating - 2,844.56 - 383.18 -

Activities 4,499.26 1,065.13 3,745.49

Net Cash Used In Investing - - -991.10 - 1,891.86

Activities 2,934.96 1,916.67 1,502.67

Net Cash Used From Financing 7,280.59 -377.63 1,330.67 1,538.85 2,397.75
Activities

Foreign Exchange Gains / Losses 2.78 -0.34 8.99 1.49 4.86

Adjustments On Amalgamation 28.47 0.00 9.37 0.00 0.37

Merger Demerger Others

NET INC/DEC IN CASH AND -122.38 549.92 -707.20 420.85 549.35

CASH EQUIVALENTS

Cash And Cash Equivalents Begin 2,030.96 1,481.04 2,188.24 1,767.39 1,218.04
of Year

Cash And Cash Equivalents End 1,908.58 2,030.96 1,481.04 2,188.24 1,767.39
Of Year

53