June 28, 2023
National Stock Exchange of India Limited
Exchange Plaza
C-1, Block G, Bandra Kurla Complex
Bandra (E), Mumbai - 400 051
Through: NEAPS
Symbol: ASHOKLEY
BSE Limited
Phiroze Jeejeebhoy Towers
Dalal Street
Mumbai - 400 001
Through: BSE Listing Centre
Scrip Code: 500477
Dear Sir/Madam,
Submission of Annual Report for the year 2022-23
The Seventy Fourth Annual General Meeting (AGM) of the Company is scheduled to be held
through Video Conferencing (“VC”)/ Other Audio-Visual Means (“OAVM”) on Friday, July 21, 2023
at 2.45 p.m.
Pursuant to Regulation 34(1) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, we submit herewith the Annual Report for the year 2022-23 along with AGM
Notice sent to the shareholders.
Kindly take the above on record.
Thanking you,
Yours faithfully,
for Ashok Leyland Limited
N Ramanathan
Company Secretary
Encl.: a/a
NATARAJAN
RAMANATHAN
Digitally signed by NATARAJAN RAMANATHAN
DN: c=IN, o=Personal,
pseudonym=76Ay9IaKzUopoDjMdQaYLKTIH8UEFDer,
2.5.4.20=22ebdb00708268080062bd623ed12444603631a4a
2c6396a6569847037804046, postalCode=600061, st=Tamil
Nadu,
serialNumber=e6c7e692a309c6eac78562d9913f554c20235b
2382a57b04952b55db37396323, cn=NATARAJAN
RAMANATHAN
Date: 2023.06.28 15:10:16 +05'30'
Driving towards a greener future
75 YEARS OF TURNING
DREAMS INTO REALITY
ANNUAL REPORT FY 2022 - 2023
FORWARD - LOOKING STATEMENT
In this Annual Report, we have disclosed forward-looking informaon
to enable investors to fully appreciate our prospects and take informed
investment decisions. This report and other statements – wrien and oral
– that we periodically make, contain forward-looking statements that set
our ancipated results based on management plans and assumpons.
We have tried, where possible to idenfy such statements by using such
words as ‘ancipate’, ‘expect’, ‘project’, ‘intend’, ‘plan’, ‘believe’ and
words of similar substance in connecon with any discussion of future
performance.
We cannot, of course, guarantee that these forward-looking statement
will be realized, although we believe we have been prudent in our
assumpons. Achievement of results is subject to risks, uncertaines,
or potenally inaccurate assumpons. Should known or unknown risks
or uncertaines materialize, or should underlying assumpons prove
inaccurate, actual results could vary materially from those ancipated,
esmated or projected. Readers should bear this in mind.
We undertake no obligaon to publicly update any forward- looking
statements, whether as a result of new informaon, future events, or
otherwise.
* * * * *
Over the last 75 years we have been at the forefront of technology, innovang and achieving
dreams that we thought were impossible at one me. Looking forward, the future of mobility is
going to be nothing like what we have seen. At Ashok Leyland, we have set our focus and we
are on the path to a more sustainable future. Our alternate fuel vehicles that were showcased
at Auto Expo 2023 are a posive step in that direcon and an indicaon of what the future of
mobility will be. We are condent that we will deliver world class products that are sustainable
and future forward.
Annual Report 2022-23 1
Dear Shareholders,
I have great pleasure in informing you that your Company has achieved
excellent results last year. Considering the uncertain industry outlook
which loomed at the beginning of the year, the performance truly
exemplies the immense resilience Ashok Leyland possesses in braving
the odds and emerging successfully. I would like to, on your behalf,
congratulate and thank the enre team in Ashok Leyland and its wider
ecosystem for their conscienous eorts to make it possible.
Reecng on our endeavour last year, it can be noted that our journey
has not been an easy one. There was volality in commodity prices
which pushed up costs, that could not be fully recovered in pricing
due to unprecedented compeve pressures. Due to a combinaon of
economic factors, the commercial vehicle industry had yet to gather
momentum in the laer part of FY22 and the residual eect remained
well into the inial period of FY23. Amid this turmoil, which had an
impact on our market share and protability, Ashok Leyland team
quickly rejigged its product-market eorts, revamped the customer
orientaon and was able to realise the high aspiraons that were set.
While stability in the market from the second half of the year buoyed
up the senment to an extent, our key success factors were superior
product performance, clinical eorts in cost reducon and above all
the “can do – will do” atude of the Ashok Leyland team.
To enumerate some of the high points across business units,
We sold 114,247 Medium and Heavy commercial vehicles in the
domesc market comprising 10,767 buses and 103,480 trucks
including Defence vehicles, registering a growth of 75.5% and
posng a market share increase of approximately 5% over the
previous year, closing at 31.8%. It is grafying that we have
gained share in every region and in almost all the product sub-
segments, aributable to the superior performance of AVTR
models, focused network development and addional thrust
given on customer centricity.
Our used vehicle business – ReAL- made good progress during
the year as was expected.
In the Light vehicle segment, with sales of 66,669 vehicles, the
growth was 27.7% over the previous year. The Bada Dost range
posted its highest ever sales volume since introducon and was
awarded ‘Pick up of the Year’ and a special edion model was
awarded the ‘Markeng campaign of the year’ by ET Now and
World Leadership Congress.
Despite dicult market situaon in target countries which faced
issues of currency depreciaon and forex availability, Internaonal
Operaons could achieve a growth of 2% year over year. We
expanded the reach by adding distributors in 12 countries and
launched 5 new products and their variants.
Power Soluons and Aermarket businesses had clocked a
growth of 9% and 31% respecvely in FY23.
Backing this spectacular market performance, the Operaons
team kept pace with the highest ever LCV producon and the
highest monthly overall vehicles producon along with the
highest ever material cost savings.
All these helped us achieve an all-me high revenue of ` 36,144
Crores with a 67% growth over previous year along with nearly 3
mes growth in EBITDA – from ` 995 Crores in FY22 to ` 2,931 Crores,
operang prot grew by 120 mes and a cash surplus of ₹ 243 Crores
at the end of FY23.
On the product and technology front, which is our passion, we are
making good progress in alternate propulsion development. At the
Auto Expo held in Delhi in January this year, a wide range of alternate
fuel driven products were displayed across our LCV, ICV and MDV
plaorms. This covered CNG, LNG, Hydrogen, Fuel Cell and Baery
Electric opons. Switch Mobility, through which we are posioning the
electric vehicles, has gained considerable momentum in FY23 and has
already made a mark in the industry. The electric LCV is slated for
introducon later this year.
Recognising the importance of building a talent pipeline in an
environment of homogenous culture, our HR team was on an overdrive
launching several iniaves and cascading them across the board. These
iniaves include dening the organisaon purpose as “Transforming
Lives & Businesses through Leadership in Mobility” and driving a new
culture throughout the organisaon. Preparing future leaders saw the
introducon of a new AL-Young Talent Program and the AL-Emerging
Leaders Program. Another signicant milestone in our gender diversity
pathway is the establishing of an all women-run engine assembly line
in our Hosur plant.
I would like to take this opportunity to present some of the key
iniaves in other areas that are relevant to our business. Our plants
have won 13 CII-Environment, Health, and Safety Excellence Awards.
Use of renewable solar power is at the top of the agenda. Renewable
energy now constutes 57% of our total requirement. Furthermore,
your Company believes sustainability is key to its overall strategy and is
consciously moving from compliance to compeveness in the overall
ESG approach. And as part of a holisc approach to sustainability, your
Company has developed an ESG vision: “To create and lead sustainable
pracces, across Environment, Social and Governance iniaves,
delivering outstanding stakeholder value.” This vision has been further
operaonalized into 10 Focus areas deep diving individually in E, S, and
G areas. Moving forward, your Company is also preparing for some
major commitments around becoming carbon-neutral in its operaons
in the medium term and becoming Net Zero in the long term.
CHAIRMAN’S MESSAGE
2 Ashok Leyland Limited
CHAIRMAN’S MESSAGE
Under CSR, our Road To School programme (RTS) is making strides
and the coverage has increased from 98,000 to over 150,000 children.
During the year, the RTS iniave has been extended to J&K and Assam
and is gaining ground gradually. RTS has also received awards from
the Tamil Nadu Government, ASSOCHAM, FICCI and SIAM. The Road to
Livelihood programme, which was introduced this year for Classes 9-12
has been well received by parents and the community. Your Company
is determined to expand this further, not just impacng a greater
number of students but also widening its reach to many more states.
You may recall we had a tagline Aap Ki Jeet Hamari Jeet for about
10 years. It symbolized a mission and a role for us as relevant then.
With the changed business dynamics and our heightened self-belief
together with our aspiraonal vision, Ashok Leyland management felt
that the tag line needs to be renewed and be reecve of our current
outlook. Also, this is our 75
th
year Anniversary and an occasion beng
a suitable tagline that galvanises the organisaon towards a limitless
horizon. On that basis, Koi Manzil Door Nahin (No Dream too far) has
been chosen, which will guide and power all our strategies and acons
from now on.
Moving on, it is reasonably expected that in FY24, the demand
is expected to exceed pre-COVID levels of 2018-19. Government
infrastructure spending, strong replacement demand and a healthy
tracon from core industries like steel, cement and mining are expected
to drive growth. You will be pleased to note that your Company is fully
prepared to take advantage of the ancipated opportunies without
compromising on market share and protability targets.
As we move forward in our aspiraons posively, I would like to gratefully
acknowledge your connued trust and faith in us and would like to
assure you of progressive growth in shareholder value year aer year.
Yours sincerely,
Dheeraj G Hinduja
Chairman
13 June 2023
Annual Report 2022-23 3
CORPORATE INFORMATION
BOARD OF DIRECTORS
Dheeraj G Hinduja, Execuve Chairman
Prof. Dr. Andreas H Biagosch
Dr. C Bhaktavatsala Rao
Jean Brunol
Jose Maria Alapont
Manisha Girotra
Sanjay K Asher
Saugata Gupta
Shom Ashok Hinduja
Shenu Agarwal, Managing Director & Chief Execuve Ocer
(appointed w.e.f. December 8, 2022)
Gopal Mahadevan, Whole-me Director and Chief Financial Ocer
Dr. Andrew C Palmer
(resigned w.e.f. November 3, 2022)
BANKERS
Axis Bank
Bank of Baroda
Central Bank of India
Ci Bank N A
DBS Bank
Federal Bank
HDFC Bank Limited
ICICI Bank Limited
IDBI Bank
Standard Chartered Bank
State Bank of India
MUFG Bank Limited
Yes Bank Limited
COMPANY SECRETARY
N Ramanathan
REGISTERED OFFICE
No.1, Sardar Patel Road, Guindy, Chennai- 600 032
SENIOR MANAGEMENT
Dr. N Saravanan
S Ganesh Mani
Raja Radhakrishnan
Amandeep Singh
Sanjeev Kumar
Sanjay Saraswat
K Ramkumar
Alok Verma
Mahesh Thakar
STATUTORY AUDITOR
Price Waterhouse & Co Chartered Accountants LLP
COST AUDITOR
Geeyes & Co
CORPORATE IDENTIFICATION NUMBER
L34101TN1948PLC000105
PLANTS
Tamil Nadu - Ennore (Chennai), Sriperumbudur (Foundry),
Vellivoyalchavadi (Technical Centre) and Hosur,
Maharashtra - Bhandara, Rajasthan - Alwar,
Uarakhand – Pantnagar, Andhra Pradesh - Vijayawada
WEBSITE
www.ashokleyland.com
REGISTRAR AND SHARE TRANSFER AGENT
Integrated Registry Management Services Private Limited
2
nd
Floor, Kences Towers
1 Ramakrishna Street, North Usman Road
T. Nagar, Chennai-600 017
Tel- +91 44 28140801/03
Fax- 91 44 2814 2479
Email: csdstd@integratedindia.in
4 Ashok Leyland Limited
CONTENTS
A Historical Perspecve of the Company .................................................................................................................................................................. 5
Noce to Shareholders ............................................................................................................................................................................................... 7
Board’s Report ............................................................................................................................................................................................................ 22
Report on Corporate Governance .............................................................................................................................................................................. 32
Management Discussion and Analysis Report .......................................................................................................................................................... 52
Business Responsibility and Sustainability Report .................................................................................................................................................... 66
Standalone Financial Statements (Pages 94 to 181)
Independent Auditors’ Report to the members ............................................................................................................................................ 94
Balance Sheet .................................................................................................................................................................................................. 104
Statement of Prot and Loss ................................................................ .......................................................................................................... 105
Statement of Cash Flows ................................................................................................................................................................................ 106
Statement of Changes in Equity ..................................................................................................................................................................... 108
Notes annexed to and forming part of the Standalone Financial Statements ............................................................................................ 109
Consolidated Financial Statements (Pages 182 to 299)
Independent Auditors’ Report to the members ............................................................................................................................................. 182
Balance Sheet ................................................................................................................................................................................................... 192
Statement of Prot and Loss ........................................................................................................................................................................... 193
Statement of Cash Flows ................................................................................................................................................................................. 194
Statement of Changes in Equity ...................................................................................................................................................................... 196
Notes annexed to and forming part of the Consolidated Financial Statements ........................................................................................... 198
Annual Report 2022-23 5
A HISTORICAL PERSPECTIVE OF THE COMPANY
` Crores
Parculars 2013-14 2014-15
Sales Volume
Vehicles (numbers) 89,337 1,04,902
Engines (numbers) 17,441 14,023
Spare parts and others 1,213 1,392
Revenue (Gross sales) 10,561 14,486
Prot before tax (91) 442
Prot aer tax 29 335
Assets
Fixed assets 5,841 5,376
Non-Current Investments 2,405 2,240
Long term loans and advances 1,002 983
Other non-current assets 33 20
Non-Current Assets 9,281 8,619
Current Investments 384 408
Inventories 1,189 1,398
Trade Receivables 1,299 1,243
Cash and Bank balances 12 751
Short Term loans and Advances 472 564
Other current assets 171 328
Current assets 3,527 4,692
Total 12,808 13,311
Financed by
Share capital 266 285
Reserves and surplus 4,182 4,834
Shareholders funds 4,448 5,119
Long term borrowings 3,297 2,566
Deferred tax liability - Net 407 510
Long-term provisions and Liabilies 70 99
Non-current liabilies 3,774 3,175
Short-term borrowings 587 25
Trade payables 2,214 2,828
Other current liabilies 1,697 1,908
Short-term provisions 88 256
Current liabilies 4,586 5,017
Total 12,808 13,311
Basic Earnings Per Share (`) 0.11 1.20
Dividend per share (`) (Face value ` 1 each) - 0.45
Employees (numbers) 11,552 11,204
6 Ashok Leyland Limited
` Crores
Parculars 2015-16 2016-17 2017-18** 2018-19 2019-20 2020-21 2021-22 2022-23
Sales Volume
Vehicles (numbers) 1,40,457 1,45,066 1,74,873 1,97,366 1,25,200 1,00,725 1,28,326 1,92,205
Engines (numbers) 15,551 16,491 18,751 21,859 20,359 23,923 20,944 22,925
Spare parts and others 1,273 1,694 1,950 1,880 1,766 1,703 2,033 2,578
Revenue (Gross sales) 19,993 21,453 26,633 29,055 17,467 15,301 21,688 36,144
Prot before tax 827 1,330 2,386 2,497 362 (412) 528 2,110
Prot aer tax 390 1,223 1,718 1,983 240 (314) 542 1,380
Assets
Property, Plant and Equipment, CWIP, Right-of-use
asset, Goodwill - Intangible assets and IAUD
4,868 5,177 5,971 6,272 7,398 7,422 6,795 6,437
Investments 1,980 2,002 2,451 2,637 2,720 3,069 3,522 3,892
Trade Receivables# - - - - 1 - - 1
Loans and Other Financial assets 135 182 60 73 102 58 69 97
Income tax asset and other non-current assets 610 579 791 1,056 746 450 441 461
Non-Current Assets 7,593 7,940 9,273 10,038 10,967 10,999 10,827 10,888
Inventories 1,625 2,631 1,758 2,685 1,238 2,142 2,075 2,775
Investments - 877 3,155 - - - 1,298 2,771
Trade Receivables 1,251 1,064 945 2,505 1,188 2,816 3,096 4,062
Cash and Bank balances 1,593 912 1,042 1,374 1,322 823 1,047 501
Loans and Other Financial assets 196 211 414 487 926 829 996 582
Other current assets (including Contract assets) 516 282 749 1,135 749 841 931 941
Current assets 5,181 5,977 8,063 8,186 5,423 7,451 9,443 11,632
Assets classied as held for sale - 123 - - - - 64 72
Total 12,774 14,040 17,336 18,224 16,390 18,450 20,334 22,592
Financed by
Equity Share capital 285 285 293 294 294 294 294 294
Other Equity 5,123 5,841 6,953 8,039 6,970 6,683 7,043 8,132
Equity 5,408 6,126 7,246 8,333 7,264 6,977 7,337 8,426
Borrowings, Lease liabilies and other nancial
liabilies
1,995 1,194 514 333 1,431 2,625 2,914 1,820
Deferred tax liability - Net 329 127 298 249 265 171 144 504
Other Non-current liabilies and provisions
(including Contract liabilies)
152 172 459 520 431 403 391 769
Non-current liabilies 2,476 1,493 1,271 1,102 2,127 3,199 3,449 3,093
Borrowings, Lease liabilies and other nancial
liabilies
1,517 2,172 1,894 1,700 2,651 1,951 1,369 2,367
Trade payables 2,563 3,117 4,888 5,019 3,037 5,165 6,875 7,175
Other current liabilies and provisions (incl.Current
Tax liabilies-net and Contract liabilies)
810 1,132 2,037 2,070 1,310 1,158 1,292 1,520
Current liabilies 4,890 6,421 8,819 8,789 6,999 8,274 9,536 11,062
Liabilies directly associated with assets classied as
held for sale
- - - - - - 12 11
Total 12,774 14,040 17,336 18,224 16,390 18,450 20,334 22,592
Basic Earnings Per Share (`) 1.37 4.24 5.87 6.76 0.82 (1.07) 1.85 4.70
Dividend per share (`) (Face value ` 1 each) 0.95 1.56 2.43 3.10 0.50
@
0.60 1.00 2.60
$
Employees (numbers) 10,352 11,906 11,865 12,133 11,463 10,758 10,101 9,603
Contract asset and Contract liabilies is applicable from 2018-19.
Right-of-use asset and Lease liabilies is applicable from 2019-20.
Figures may not be strictly comparable due to presentaon changes
resulng from adopon of IND AS.
#amount is below rounding o norms adopted by the Group.
@Interim dividend declared by the Board during the year.
**Pursuant to amalgamaon of three wholly owned subsidiaries of
the Company with the Company from April 1, 2017.
$
Proposed Dividend
A HISTORICAL PERSPECTIVE OF THE COMPANY
As per Ind AS noed under the Companies (Indian Accounng Standards) Rules, 2015
Annual Report 2022-23 7
NOTICE is hereby given that the Seventy Fourth Annual General Meeng
(AGM) of Ashok Leyland Limited will be held on Friday, July 21, 2023
at 2.45 P.M. IST through Video Conferencing (‘VC’)/Other Audio-Visual
Means (‘OAVM’) to transact the following businesses:
ORDINARY BUSINESS
1. To receive, consider and adopt:
a) the Audited Standalone Financial Statements of the
Company for the nancial year ended March 31, 2023,
together with the Reports of the Board of Directors and
the Auditors thereon; and
b) the Audited Consolidated Financial Statements of the
Company for the nancial year ended March 31, 2023
together with the Report of Auditors thereon.
2. To declare a dividend for the nancial year ended March 31,
2023.
3. To appoint a Director in place of Mr. Gopal Mahadevan (DIN:
01746102) who reres by rotaon and being eligible, oers
himself for re-appointment.
SPECIAL BUSINESS
4. To consider and if thought t, to pass the following resoluon as
an Ordinary Resoluon:
“RESOLVED that pursuant to the provisions of Secon 148(3)
and other applicable provisions of the Companies Act, 2013
(‘the Act’) read with the Rules made thereunder [including any
statutory modicaon(s) or re-enactment(s) thereof for the me
being in force], the remuneraon payable to Messers. Geeyes
& Co., Cost & Management Accountants, (Firm Registraon No.
000044), appointed by the Board of Directors as Cost Auditors to
conduct the audit of the cost accounng records of the Company
for the nancial year ended March 31, 2023, amounng to
` 7,00,000/- (Rupees Seven lakhs only) plus applicable taxes and
reimbursement of out-of-pocket expenses incurred in connecon
with the aforesaid audit, be and is hereby raed.”
5. To consider and if thought t, to pass the following resoluon as
an Ordinary Resoluon:
“RESOLVED that pursuant to Regulaon 23 of the Securies
and Exchange Board of India (Lisng Obligaons and Disclosure
Requirements) Regulaons, 2015 [including any statutory
modicaon(s) or re-enactment(s) thereof for the me being
in force], the Company’s Policy on dealing with Related Party
Transacons and all other applicable laws and regulaons,
including but not limited to the relevant provisions of the
Companies Act, 2013 as may be applicable, the approval of
the Members, be and is hereby accorded for the Transacons
(whether an individual transacon or transacons taken together
or series of transacons or otherwise) with TVS Mobility Private
Limited, a ‘Related Party’ of the Company’s subsidiary as per
Secon 2(76) of the Companies Act, 2013, with respect to sale
of vehicles/spares/recondioned engines/services/ payment of
incenves & commission, warranty, sales promoon, etc., for FY
2024-25, for an aggregate value which would be in excess of `
1,000 Crores or 10% of the annual consolidated turnover as per
the Company’s last audited nancial statements, whichever is
lower, on such terms and condions as may be decided by the
Board of Directors/Audit Commiee from me to me, provided
that the said contract(s)/arrangement(s)/ transacon(s) shall be
carried out at arm’s length basis and are in the ordinary course
of business of the Company.”
“RESOLVED FURTHER that the Board of Directors of the Company/
the Audit Commiee be and is hereby authorized to do and
perform all such acts, deeds and things, as may be necessary,
including nalizing the terms and condions, modes and
execung necessary documents, including contracts, schemes,
agreements, le applicaons, make representaons thereof and
seek approval from relevant authories, if required and deal
with any maers, take necessary steps as the Board may in its
absolute discreon deem necessary, desirable or expedient, to
give eect to this resoluon and to sele any queson that may
arise in this regard and incidental thereto, without being required
to seek any further consent or approval of the Members and
that the Members shall be deemed to have given their approval
thereto expressly by the authority of this resoluon.”
“RESOLVED FURTHER THAT the Board of Directors be and is
hereby authorized to delegate all or any of the powers herein
conferred, to any Director(s), Chief Financial Ocer, Company
Secretary or any other Ocer(s) of the Company, to do all such
acts and take such steps, as may be considered necessary or
expedient, to give eect to the aforesaid resoluon(s).”
“RESOLVED FURTHER THAT all acons taken by the Board of
Directors/Audit Commiee in connecon with maers referred
to or contemplated in the foregoing resoluons, be and are
hereby approved, raed and conrmed in all respects.”
6. To consider and if thought t, to pass the following resoluon as
an Ordinary Resoluon:
“RESOLVED that pursuant to Regulaon 23 of the Securies
and Exchange Board of India (Lisng Obligaons and Disclosure
Requirements) Regulaons, 2015 [including any statutory
modicaon(s) or re-enactment(s) thereof for the me being
in force], the Company’s Policy on dealing with Related Party
Transacons and all other applicable laws and regulaons
including but not limited to the relevant provisions of the
Companies Act, 2013 as may be applicable, the approval of
the Members, be and is hereby accorded for the Transacons
(whether an individual transacon or transacons taken together
or series of transacons or otherwise) with the Company’s step
down subsidiary - Switch Mobility Automove Limited, a ‘Related
Party’ of the Company as per Secon 2(76) of the Companies
Act, 2013, with respect to sale & purchase of goods, availing
or rendering of services, providing any security or guarantee in
whatever form called, giving of loans, other expenses/income/
transacons etc. for the nancial year 2023-24 for an aggregate
value which would be in excess of ` 1,000 Crores or 10% of the
annual consolidated turnover as per the Company’s last audited
nancial statements, whichever is lower, on such terms and
condions as may be decided by the Board of Directors/Audit
Commiee from me to me, provided that the said contract(s)/
arrangement(s)/transacon(s) shall be carried out at arm’s length
basis and in the ordinary course of business of the Company.”
“RESOLVED FURTHER that the Board of Directors of the Company/
the Audit Commiee be and is hereby authorized to do and
perform all such acts, deeds and things, as may be necessary,
including nalizing the terms and condions, modes and
execung necessary documents, including contracts, schemes,
agreements, le applicaons, make representaons thereof and
seek approval from relevant authories, if required and deal
with any maers, take necessary steps as the Board may in its
NOTICE TO SHAREHOLDERS
8 Ashok Leyland Limited
absolute discreon deem necessary, desirable or expedient, to
give eect to this resoluon and to sele any queson that may
arise in this regard and incidental thereto, without being required
to seek any further consent or approval of the Members and
that the Members shall be deemed to have given their approval
thereto expressly by the authority of this resoluon.”
“RESOLVED FURTHER THAT the Board of Directors be and is
hereby authorized to delegate all or any of the powers herein
conferred, to any Director(s), Chief Financial Ocer, Company
Secretary or any other Ocer(s) of the Company, to do all such
acts and take such steps, as may be considered necessary or
expedient, to give eect to the aforesaid resoluon(s).”
“RESOLVED FURTHER THAT all acons taken by the Board of
Directors/Audit Commiee in connecon with maers referred
to or contemplated in the foregoing resoluons, be and are
hereby approved, raed and conrmed in all respects.”
7. To consider and if thought t, to pass the following resoluon as
a Special Resoluon:
“RESOLVED that pursuant to Secon 14 and other applicable
provisions of the Companies Act, 2013 read with the relevant
Rules made thereunder [including any statutory modicaon(s)
or re-enactment(s) thereof for the me being in force], the
consent of the Members be and is hereby accorded to amend
the Arcles of Associaon of the Company by inserng the
following Arcle 137A aer the exisng Arcle 137.”
137A. In the event of any default as stated in Regulaon 15(1)
(e) of the Securies and Exchange Board of India (Debenture
Trustees) Regulaons, 1993 (as amended from me to me),
the debenture trustee(s) may exercise the right and power to
appoint a person to be a Director of the Company liable to rere
by rotaon. Any person(s) so appointed, may at any me, be
removed by such debenture trustee(s) and any such appointment
or removal shall be in wring, signed by such debenture trustee(s)
and served on the Company.
By Order of the Board
Chennai N Ramanathan
May 23, 2023 Company Secretary
Registered Oce:
1, Sardar Patel Road, Guindy
Chennai - 600 032
CIN: L34101TN1948PLC000105
Tel: +91 44 2220 6000; Fax: +91 44 2220 6001
E-mail: [email protected]
Website: www.ashokleyland.com
NOTES:
1. A dividend of ` 2.60/- per share has been recommended by the
Board of Directors for the year ended March 31, 2023, subject
to approval of shareholders. Dividend, if approved at the Annual
General Meeng (AGM), shall be paid on or before August 19,
2023. The Company has xed Friday, July 7, 2023 as the Record
Date for determining entlement of Members to the dividend for
the nancial year ended March 31, 2023, if approved at the AGM.
2. The Register of Members and the Share Transfer books of the
Company will remain closed from Saturday, July 8, 2023 to Friday,
July 21, 2023 (both days inclusive) for the purpose of ensuing
AGM of the Company and payment of dividend.
3. The Ministry of Corporate Aairs (‘MCA’) has vide its circulars dated
April 8, 2020, April 13, 2020, May 5, 2020 read with circular dated
December 28, 2022 (collecvely referred to as ‘MCA Circulars’)
permied the holding of the AGM through VC/OAVM, without
the physical presence of the Members at a common venue.
In compliance with the provisions of the Companies Act, 2013
(the Act), SEBI (Lisng Obligaons and Disclosure Requirements)
Regulaons, 2015 (‘SEBI Lisng Regulaons’) and MCA Circulars,
the AGM of the Company is being held through VC/OAVM.
4. The relevant Explanatory Statement pursuant to Secon 102
of the Act, seng out material facts in respect of businesses
under item nos. 4 to 7 of the Noce, is annexed hereto. Details
pursuant to Regulaon 36(3) of the SEBI Lisng Regulaons and
Secretarial Standard on General Meengs issued by the Instute
of Company Secretaries of India, in respect of the Director
seeking re-appointment at this AGM are also annexed.
5. Pursuant to the provisions of the Act, a Member entled to
aend and vote at the AGM is entled to appoint a proxy to
aend and vote on his/her behalf and the proxy need not be a
Member of the Company. Since this AGM is being held through
VC/OAVM, physical aendance of Members has been dispensed
with. Accordingly, the facility for appointment of proxies by the
Members will not be available for the AGM and hence the Proxy
Form and Aendance Slip are not annexed to this Noce.
6. Instuonal/Corporate Shareholders (i.e., other than Individuals,
HUF, NRI, etc.) are required to send a scanned copy (PDF/JPEG
format) of its Board or governing body resoluon/authorisaon
etc., authorising its representave to aend the AGM through
VC/OAVM on its behalf and to vote through remote e-vong. The
said resoluon/authorisaon shall be sent to the Scrunizer by
e-mail at their registered e-mail address to scruniserbc@gmail.
com with a copy marked to evo[email protected].
7. Members are requested to note that, dividends if not encashed
for a period of seven years from the date of transfer to Unpaid
Dividend Account of the Company, are liable to be transferred
to the Investor Educaon and Protecon Fund (‘IEPF’). Further,
shares in respect of which dividends have remained unclaimed
for a period of seven consecuve years or more are also liable
to be transferred to the IEPF Authority. In view of this, Members/
claimants are requested to claim their dividends from the
Company, within the spulated meline. The Members, whose
unclaimed dividends/shares have been transferred to IEPF, may
claim the same by making an applicaon to the IEPF Authority,
in Form No. IEPF-5 available on www.iepf.gov.in. The Members/
claimants can le only one consolidated claim in a nancial year
as per the IEPF Rules.
8. In compliance with the MCA Circulars and SEBI Circular dated
January 5, 2023, Noce of the AGM along with the Annual Report
for the FY 2022-23 is being sent only through electronic mode
to those Members whose e-mail addresses are registered with
the Company/Depositories. Members may note that the Noce
and Annual Report for the FY 2022-23 is also available on the
Company’s website www.ashokleyland.com, websites of the Stock
Exchanges i.e., BSE Limited and Naonal Stock Exchange of India
Limited at www.bseindia.com and www.nseindia.com respecvely,
and on the website of NSDL – www.evong.nsdl.com.
NOTICE TO SHAREHOLDERS
Annual Report 2022-23 9
NOTICE TO SHAREHOLDERS
9. Members seeking any informaon with regard to the accounts
or any maer to be placed at the AGM, are requested to write
to the Company on or before July 14, 2023 through e-mail to
secret[email protected]. The same will be replied by the
Company suitably.
10. The Register of Directors and Key Managerial Personnel and
their shareholding, maintained under Secon 170 of the Act,
the Register of Contracts or Arrangements in which the Directors
are interested, maintained under Secon 189 of the Act and the
relevant documents referred to in the Noce will be available,
electronically, for inspecon by the Members during the AGM.
All documents referred to in the Noce will also be available for
inspecon from the date of circulaon of this Noce up to the
date of AGM. Members seeking to inspect such documents can
send an e-mail to secret[email protected].
11. Members holding shares in physical form and desirous of making
a nominaon in respect of their shareholding in the Company as
permied under Secon 72 of the Act, read with the Rules made
thereunder are requested to send the prescribed Form SH-13 to
the Corporate/Registered Oce of the Company. Any change or
cancellaon of the nominaon already given is to be submied
in Form SH-14. Form SH-13 and Form SH-14 are available on the
Company’s website in the Investors Secon for download.
12. Members are requested to inmate changes, if any, pertaining
to their name, postal address, e-mail address, telephone/
mobile numbers, Permanent Account Number, ECS mandate,
nominaons (together called 'KYC'), power of aorney, etc., to
their Depository Parcipant(s), in case shares are held by them
in electronic form and to Integrated Registry Management
Services Private Limited (‘RTA’), ‘Kences Towers’, 2
nd
Floor, No. 1,
Ramakrishna Street, North Usman Road, T Nagar, Chennai - 600
017, in case shares are held by them in physical form.
Members holding shares in physical mode, who have not
registered their above parculars are requested to register the
same with the Company/RTA in prescribed Form ISR-1. Any
claricaons in this regard may be addressed to the RTA at
csdstd@integratedindia.in.
Members are requested to note that in line with SEBI Circular
dated March 16, 2023, RTA will accept only operave PAN (those
linked with Aadhar) with eect from June 30, 2023 or such other
date as may be noed by Central Board of Direct Taxes (CBDT).
Those folios in which PAN is not linked with Aadhar subsequent
to the due date, shall be frozen by the RTA.
Further, in line with this circular, RTAs are required to freeze
folios wherein PAN, KYC and nominaon is not available on or
aer October 1, 2023. Any service request in respect of these
frozen folios will be undertaken only aer the complete details
are lodged with the RTA.
Members may note that with eect from April 1, 2024, the
Company will not be able to pay dividend, in respect of frozen
folios unl the complete details as required including bank account
details are furnished to the RTA. Further, from December 31, 2025
or such due date as may be noed by the Authority, the RTA is
required to refer the details of the frozen folios to the Administering
Authority under the Benami Transacons (Prohibions) Act, 1988
and/or Prevenon of Money Laundering Act, 2002.
Considering the aforemenoned restricons, Members whose
details are not updated with the RTA are urged to immediately
register their details with the RTA in Form ISR-1. Any claricaons
in this regard may be addressed to the RTA at csdstd@
integratedindia.in.
13. Members who hold shares in physical form in mulple folios in
idencal names or joint holding in the same order of names are
requested to send the share cercates to the Company/RTA for
consolidaon into a single folio.
14. As per Regulaon 40 of SEBI Lisng Regulaons, all requests for
transfer of securies including transmission and transposion,
issue of duplicate share cercate; claim from unclaimed suspense
account; renewal/exchange of share cercate; endorsement;
sub-division/spling of share cercate; consolidaon of share
cercate/folios shall be processed only in dematerialized form.
In view of this and to eliminate all risks associated with physical
shares and for ease of porolio management, Members holding
shares in physical form are requested to consider converng
their holdings to dematerialised form.
15. Members aending the AGM through VC/OAVM shall be counted
for the purpose of reckoning the quorum under Secon 103 of
the Act. Subject to receipt of requisite number of votes, the
resoluons shall be deemed to be passed on the date of the
AGM, i.e., Friday, July 21, 2023.
16. Since the AGM will be held through VC/OAVM, the Route Map is
not annexed in this Noce.
17. Vong and joining Annual General Meeng through electronic
means:
(i) Pursuant to the provisions of Secon 108 of the Act
read with Rule 20 of the Companies (Management and
Administraon) Rules, 2014 (as amended from me to
me) and Regulaon 44 of the SEBI Lisng Regulaons,
the Company is providing the facility of remote e-vong to
its Members in respect of the business to be transacted at
the AGM.
For this purpose, the Company has entered into an
agreement with Naonal Securies Depository Limited
(NSDL) for facilitang vong through electronic means, as
the authorized agency. The facility of casng votes by a
Member using remote e-vong system as well as vong on
the date of the AGM will be provided by NSDL.
(ii) The ‘cut-o date’ for determining the eligibility for vong
through electronic vong system is xed as Friday, July 14,
2023. The remote e-vong period commences on Tuesday,
July 18, 2023 at 9.00 a.m. IST and ends on Thursday, July
20, 2023 at 5.00 p.m. IST. During this period, a person
whose name is recorded in the Register of Members
or in the Register of Beneciary Owners maintained by
the Depositories, as on the cut-o date, i.e., Friday, July
14, 2023 shall be entled to avail the facility of remote
e-vong. The remote e-vong module shall be disabled by
NSDL for vong thereaer. Those Members, who will be
present in the AGM through VC/OAVM facility and have
not cast their vote on the resoluons through remote
e-vong and are otherwise not barred from doing so, shall
be eligible to vote through e-vong system during the
AGM. The vong rights of Members shall be in proporon
to their share in the paid-up equity share capital of the
Company as on the cut-o date, being July 14, 2023.
10 Ashok Leyland Limited
The details of the process and manner for remote e-vong and vong during the AGM are explained below:
Step 1: Access to NSDL e-vong system
Step 2: Cast your vote electronically on NSDL e-vong system
Step 1: Access to NSDL e-vong system
i. LOGIN METHOD FOR E-VOTING AND JOINING VIRTUAL MEETING FOR INDIVIDUAL MEMBERS HOLDING SECURITIES IN DEMAT MODE
In terms of SEBI circular dated December 9, 2020 on ‘e-vong facility provided by Listed Companies’, e-vong process has been enabled to all
the individual demat account holders, by way of single login credenal, through their demat account(s)/websites of Depositories/Depository
Parcipant(s) (“DPs”) in order to increase the eciency of the vong process. Individual demat account holders would be able to cast their
vote without having to register again with the e-vong service provider (“ESP”) thereby not only facilitang seamless authencaon but also
ease and convenience of parcipang in e-vong process.
Members are advised to update their mobile number and e-mail address in their demat accounts to access e-vong facility.
Login method for Individual shareholders holding securies in demat mode is given below:
Type of shareholders Login Method
Individual Shareholders
holding securies in
demat mode with NSDL
I. NSDL IDeAS facility:
i. In case you are registered with NSDL IDeAS facility, then –
a. Please visit hps://eservices.nsdl.com either on a personal computer or on a mobile phone.
b. The e-Services home page is displayed. On the e-Services home page, click on the ‘Benecial
Owner’ icon under ‘Login’ available under ‘IDeAS’ secon.
c. You will have to enter your exisng User ID and Password. Aer successful authencaon, you will
be able to see e-vong services.
d. Click on “Access to e-vong” under e-vong services and you will be able to see e-vong page.
e. Click on opons available against company name or e-vong service provider – NSDL and you will
be redirected to the NSDL e-vong website for casng your vote during the remote e-vong period
or vong during the meeng.
ii. If you are not registered for IDeAS e-Services -
a. The opon to register is available at hps://eservices.nsdl.com.
b. Select “Register Online for IDeAS Portal” or click on hps://eservices.nsdl.com/SecureWeb/
IdeasDirectReg.jsp
c. Upon successful registraon, please follow the steps given in point (a) to (e) above.
II. E-vong website of NSDL
a. Visit the e-vong website of NSDL. Open web browser by typing the following URL: hps://www.
evong.nsdl.com/ either on a personal computer or on a mobile phone.
b. Once the home page of e-vong system is launched, click on the ‘Login’ available under the
‘Shareholder/Member’ secon.
c. A new screen will open. You will have to enter your User ID (i.e. your 16-digit demat account number
held with NSDL), Password/OTP and a vericaon code as shown on the screen.
d. Aer successful authencaon, you will be redirected to NSDL Depository site wherein you can see
e-vong page.
e. Click on opons available against company name or e-vong service provider – NSDL and you will be
redirected to the e-vong website of NSDL for casng your vote during the remote e-vong period or
vong during the meeng.
f. Shareholders/Members can also download NSDL Mobile App “NSDL Speed-e” facility by scanning the
QR code menoned below for seamless vong experience.
NOTICE TO SHAREHOLDERS
Annual Report 2022-23 11
Individual Shareholders
holding securies in
demat mode with CDSL
1. Exisng users who have opted for Easi/Easiest can login through their user ID and password. The opon
to reach the e-vong page will be made available without any further authencaon. The URL for users to
login to Easi/Easiest are hps://web.cdslindia.com/myeasi/home/login or www.cdslindia.com and click on
New System Myeasi.
2. Aer successful login of Easi/Easiest, the user will be also able to see the e-vong menu. The menu will
have links of e-vong service provider i.e. NSDL. Click on NSDL to cast your vote.
3. If the user is not registered for Easi/Easiest, the opon to register is available at hps://web.cdslindia.com/
myeasi/Registraon/EasiRegistraon
4. Alternavely, the user can directly access e-vong page by providing demat Account Number and PAN
from a link in www.cdslindia.com home page. The system will authencate the user by sending OTP on
registered Mobile & E-mail as recorded in the demat Account. Aer successful authencaon, the user will
be provided links for the respecve ESP i.e. NSDL where the e-vong is in progress.
Individual Shareholders
(holding securies in
demat mode) login
through their depository
parcipants
1. You can also login using the login credenals of your demat account through your Depository Parcipant
registered with NSDL/CDSL for e-vong facility.
2. Once logged in, you will be able to see e-vong opon. Once you click on the e-vong opon, you will be
redirected to NSDL/CDSL depository site aer successful authencaon, wherein you can see e-vong feature.
3. Click on the opons available against company name or e-vong service provider - NSDL and you will be
redirected to the e-vong website of NSDL for casng your vote during the remote e-vong period or
vong during the meeng.
Important note: Members who are unable to retrieve User ID/Password are advised to use ‘Forget User ID’ and ‘Forget Password’ opon
available at abovemenoned website.
HELPDESK FOR INDIVIDUAL SHAREHOLDERS HOLDING
SECURITIES IN DEMAT MODE FOR ANY TECHNICAL ISSUES
RELATED TO LOGIN THROUGH DEPOSITORY I.E. NSDL AND CDSL.
Login type Helpdesk details
Individual Shareholders
holding securies in
demat mode with
NSDL
Members facing any technical issue
in login can contact NSDL helpdesk
by sending a request at evong@
nsdl.co.in or call at 022 - 4886 7000
and 022 - 2499 7000.
Individual Shareholders
holding securies in
demat mode with
CDSL
Members facing any technical issue
in login can contact CDSL helpdesk
by sending a request at helpdesk.
toll free no. 1800 22 55 33.
II. LOGIN METHOD FOR E-VOTING AND JOINING VIRTUAL MEETING
FOR SHAREHOLDERS OTHER THAN INDIVIDUAL SHAREHOLDERS
HOLDING SECURITIES IN DEMAT MODE AND SHAREHOLDERS
HOLDING SECURITIES IN PHYSICAL MODE.
1. Visit the e-vong website of NSDL. Open web browser by
typing the following URL: hps://www.evong.nsdl.com/
either on a personal computer or on a mobile phone.
2. Once the home page of e-vong system is launched, click
on the icon “Login” available under the ‘Shareholder/
Member’ secon.
3. A new screen will open. You will have to enter your User
ID, your Password/OTP and a vericaon code as shown on
the screen.
4. Alternavely, if you are registered for NSDL e-services
i.e. IDeAS, you can log in at hps://eservices.nsdl.com/
with your exisng IDeAS login. Once you log in to NSDL
e-services using your login credenals, click on e-vong and
you can proceed to Step 2 i.e. Cast your vote electronically
on NSDL e-vong system.
5. Your User ID details are given below:
Manner of holding
shares i.e. Demat
(NSDL or CDSL) or
Physical
Your User ID is:
a) For Members
who hold
shares in demat
account with
NSDL
8 Character DP ID followed by 8
Digit Client ID
For example: if your DP ID
is IN300*** and Client ID is
12****** then your user ID is
IN300***12******.
b) For Members
who hold
shares in demat
account with
CDSL
16 Digit Beneciary ID
For example: if your Beneciary ID
is 12************** then your
user ID is 12**************
c) For Members
holding shares
in physical form
EVEN Number followed by Folio
Number registered with the
Company
For example: if folio number is
001*** and EVEN is 101456 then
user ID is 101456001***
6. Password details for shareholders other than Individual
shareholders are given below:
a. If you are already registered for e-vong, then you
can use your exisng password to login and cast your
vote.
b. If you are using NSDL e-vong system for the rst
me, you will need to retrieve the ‘inial password’
which was communicated to you. Once you retrieve
your ‘inial password’, you need to enter the ‘inial
password’ for the system to prompt you to change
your password.
NOTICE TO SHAREHOLDERS
12 Ashok Leyland Limited
c. How to retrieve your ‘inial password’?
If your e-mail ID is registered in your demat account
or with the Company, your ‘inial password’ is
communicated to you on your e-mail ID. Trace the
email sent to you from NSDL from your mailbox.
Open the email and open the aachment i.e. a .pdf
le. Open the .pdf le. The password to open the
.pdf le is your 8-digit Client ID for NSDL account or
the last 8 digits of Client ID for CDSL account or Folio
Number for shares held in physical form. The .pdf le
contains your ‘User ID’ and your ‘inial password’.
7. If you are unable to retrieve or have not received the
‘Inial password’ or have forgoen your password:
a. Click on ‘Forgot User Details/Password?’(If you hold
shares in your demat account with NSDL or CDSL)
opon available on www.evong.nsdl.com.
b. Physical User Reset Password?” (If you hold shares
in physical mode) opon available on www.evong.
nsdl.com.
c. If you are sll unable to get the password by the
aforesaid two opons, you can send a request to
evo[email protected] menoning your demat account
number/Folio number, your PAN, your name and
your registered address.
d. Members can also use the OTP (One Time Password)
based login for casng the votes on the e-vong
system of NSDL.
8. Aer entering your password, ck on ‘Agree with Terms
and Condions’ by selecng on the check box.
9. Now, you will have to click on ‘Login’ buon.
10. Aer you click on the ‘Login’ buon, the homepage of
e-vong will open.
Step 2: Cast your vote electronically and join General Meeng on
NSDL e-vong system.
1. Aer successfully logging in following Step 1, you will be able
to see the EVEN of all companies in which you hold shares and
whose vong cycle and General Meeng is in acve status.
2. Select the EVEN of Ashok Leyland Limited. For joining virtual
meeng, you need to click on “VC/OAVM” link placed under
“Join Meeng”.
3. Now you are ready for e-vong as the vong page opens.
4. Cast your vote by selecng appropriate opons i.e. assent or
dissent, verify/modify the number of shares for which you wish to
cast your vote and click on ‘Submit’ and ‘Conrm’ when prompted.
5. Upon conrmaon, the message ‘Vote cast successfully’ will be
displayed.
6. You can also take the printout of the votes cast by you by clicking
on the ‘Print’ opon on the conrmaon page.
7. Once you conrm your vote on the resoluon, you will not be
allowed to modify your vote.
GENERAL GUIDELINES FOR MEMBERS
1. Instuonal/Corporate Shareholders (i.e., other than individuals/
HUF, NRI, etc.) are required to send a scanned copy (PDF/JPEG
format) of its Board or governing body resoluon/authorisaon
etc., authorising its representave to aend the AGM through
VC/OAVM on its behalf and to vote through remote e-vong.
The said resoluon/authorisaon shall be sent to the Scrunizer
by e-mail their registered e-mail address to scruniserbc@gmail.
com with a copy marked to evo[email protected]. Instuonal
shareholders (i.e. other than individuals, HUF, NRI etc.) can
also upload their Board Resoluon/Power of Aorney/Authority
Leer etc. by clicking on ‘Upload Board Resoluon/Authority
Leer’ displayed under ‘e-vong’ tab in their login.
2. It is strongly recommended that you do not share your password
with any other person and take utmost care to keep your password
condenal. Login to the e-vong website will be disabled upon
ve unsuccessful aempts to key in the correct password. In
such an event, you will need to go through the “Forgot User
Details/Password?” or “Physical User Reset Password?” opon
available on www.evong.nsdl.com to reset the password.
3. In case of any queries, you may refer the Frequently Asked
Quesons (FAQs) for shareholders and e-vong user manual for
shareholders available in the download secon of www.evong.
nsdl.com or call on help desk: 022-48867000 & 022-24997000
or send a request to evo[email protected], or contact Amit Vishal,
Assistant Vice President, or Pallavi Mhatre, Senior Manager,
Naonal Securies Depository Ltd., at the designated email IDs:
get your grievances on e-vong addressed.
PROCESS FOR THOSE MEMBERS WHOSE E-MAIL ADDRESS ARE NOT
REGISTERED WITH THE DEPOSITORIES FOR PROCURING USER ID AND
PASSWORD AND REGISTRATION OF E MAIL IDS FOR E-VOTING ON THE
RESOLUTIONS SET OUT IN THIS NOTICE:
1. In case shares are held in physical mode, please provide folio
no., name of shareholder, scanned copy of the share cercate
(front and back), PAN (self-aested scanned copy of PAN card),
AADHAR (self-aested scanned copy of Aadhar Card) by e-mail to
csdstd@integratedindia.in.
2. In case shares are held in demat mode, please provide DPID-
CLID (16-digit DPID + CLID or 16-digit beneciary ID), name,
client master or copy of consolidated account statement, PAN
(self-aested scanned copy of PAN card), AADHAR (self-aested
scanned copy of Aadhar Card) to csdstd@integratedindia.in.
3. If you are an Individual Member holding securies in demat mode,
you are requested to refer to the login method explained at Step
1 (A) i.e. Login method for e-vong and joining virtual meeng for
Individual shareholders holding securies in demat mode.
for procuring user ID and password for e-vong by providing
above menoned documents.
5. In terms of SEBI circular dated December 9, 2020, on e-vong
facility provided by Listed Companies, individual shareholders
holding securies in demat mode are allowed to vote through
their demat account maintained with Depositories and Depository
Parcipants. Shareholders are required to update their mobile
number and email ID correctly in their demat account in order
to access e-vong facility.
NOTICE TO SHAREHOLDERS
Annual Report 2022-23 13
INSTRUCTIONS TO MEMBERS FOR ATTENDING THE AGM THROUGH
VC/OAVM ARE AS UNDER:
1. Members will be provided with a facility to aend the AGM
through VC/OAVM through the NSDL e-vong system. Members
may access by following the steps menoned above for ‘Access
to NSDL e-vong system’. The link for VC/OAVM will be available
in ‘Shareholder/Member login’ where the EVEN of the Company
will be displayed. Aer successful login, Members will be
able to see the link of ‘VC/OAVM’ placed under the tab ‘Join
General meeng’ against the Company’s name. On clicking this
link, Members will be able to aend the AGM. Please note
that Members who do not have the User ID and Password for
e-vong or have forgoen the User ID/Password may retrieve the
same by following the remote e-vong instrucons menoned
above in the Noce, to avoid last minute rush.
2. Facility of joining the AGM through VC/OAVM shall open 30
minutes before the me scheduled for the AGM and will be
available for Members on rst come rst served basis.
3. Members may join the Meeng through Laptops, Smartphones
and Tablets. Further, Members will be required to allow Camera
and use Internet with a good speed to avoid any disturbance
during the Meeng. Members will need the latest version of
Chrome, Safari, Internet Explorer, MS Edge or Firefox. Please note
that parcipants connecng from Smartphones or Tablets or
through Laptops connecng via mobile hotspot may experience
Audio/Video loss due to uctuaon in their respecve network. It
is therefore recommended to use stable Wi-Fi or LAN connecon
to migate any glitches.
4. Members who would like to express their views or ask quesons
during the AGM need to pre-register themselves as a Speaker
by sending their request from their registered email address
menoning their name, DP ID and Client ID/folio number, PAN,
mobile number at secret[email protected] from July 11,
2023 (9:00 a.m. IST) to July 12, 2023 (5:00 p.m. IST). Those
Members who have registered themselves as a Speaker will
only be allowed to express their views/ask quesons during the
AGM. The Company reserves the right to restrict the number of
speakers depending on the availability of me for the AGM.
INSTRUCTIONS FOR MEMBERS FOR E-VOTING DURING THE AGM:
1. The procedure for e-vong during the AGM is same as the
instrucons menoned above for remote e-vong.
2. Only those Members/shareholders, who will be present at the
AGM through VC/OAVM facility and have not cast their vote on
the Resoluon(s) through remote e-vong and are otherwise not
barred from doing so, shall be eligible to vote through e-vong
system during the AGM.
3. Members who have cast their vote through remote e-vong prior
to the AGM will be eligible to aend the AGM. However, they
shall not be entled to cast their vote again.
4. The details of the persons who may be contacted for any
grievances connected with the facility for e-vong during the
AGM shall be the same as menoned for remote e-vong.
OTHER GUIDELINES FOR MEMBERS:
1. Any person holding shares in physical form and non-individual
shareholders who acquires shares of the Company and becomes
a Member aer the Company sends the Noce by e-mail and
thereaer holds shares as on the cut-o date i.e., July 14, 2023,
may obtain the User ID and password by sending a request to
csdstd@integratedindia.in. However, if you are already registered
with NSDL for remote e-vong, then you can use your exisng
user ID and password for casng your vote. If you have forgoen
your password, you can reset your password by using ‘Forgot User
Details/Password?’ or ‘Physical User Reset Password?’ opon
available on www.evong.nsdl.com. Individual shareholders
holding securies in demat mode, who acquire shares of the
Company and becomes a Member aer the Company sends the
Noce by e-mail and thereaer holds shares as on the cut-o
date i.e., July 14, 2023, may follow the steps menoned in the
e-vong instrucons.
A person who is not a Member as on the cut-o date is requested
to treat this Noce for informaon purpose only.
2. The Company has appointed B Chandra & Associates, Pracsing
Company Secretaries (Firm Reg. No. P2017TN065700), Chennai,
as the Scrunizer to scrunize the vong during the meeng and
the remote e-vong process, in a fair and transparent manner.
3. The Scrunizer shall aer the conclusion of e-vong at the
AGM, rst download the votes cast at the AGM and thereaer
unblock the votes cast through remote e-vong and shall make a
consolidated scrunizer’s report of the total votes cast in favour
or against, if any, to the Chairman or a person authorised by him
in wring, who shall countersign the same.
4. As per Regulaon 44 of the SEBI Lisng Regulaons, the results
of the e-vong are to be submied to the Stock Exchanges
within two working days of the conclusion of the AGM. The
results declared along with Scrunizer’s report will be placed
on the Company’s website www.ashokleyland.com and the
website of NSDL www.evong.nsdl.com. The results will also be
communicated to the Stock Exchanges.
NOTICE TO SHAREHOLDERS
14 Ashok Leyland Limited
Details on Tax Deducon at Source (TDS) On Dividend Distribuon
Dividend income is taxable in the hands of Shareholders and the Company is required to deduct tax at source from dividend paid to Shareholders
at the prescribed rates under the provisions of the Income Tax Act, 1961. The rate at which the dividend is subject to withholding tax would vary
depending on the residenal status of the shareholders and the documents submied by them and accepted by the Company. We request all the
Shareholders to take note of the applicable TDS rates, as tabulated below and provide the documents to the Company, as applicable to them.
The Shareholders are requested to update their PAN with the Company/ Integrated Enterprises (India) Private Ltd (“Integrated”) (in case of shares
held in physical mode) and with the Depositories/ Depository Parcipants (in case of shares held in demat mode).
Category of
Shareholders
Tax Rate Exempon Applicability/ Documentaon Requirement
Any resident shareholder 10% – Update the valid PAN if not already done with depositories (in case of shares held in DEMAT mode)
and with the Company’s RTA (in case of shares held in physical mode). In case details are already
updated, the same need not be provided.
– No taxes will be deducted in the following cases:
If dividend income to the resident individual shareholder during FY 2023-24 does not exceed
₹ 5,000
If the Shareholder is exempted from TDS provisions through any circular(s) or nocaon(s)
and provides an aested copy of the PAN along with documentary evidence in relaon to the
same
Furnishing of validly lled and signed Form 15G (for individuals, with no tax liability on total
income and income not exceeding the maximum amount which is not chargeable to tax) or
Form 15H (for individuals above the age of 60 years with no tax liability on the total income)
– provided that all prescribed eligibility condions are met.
Note - All elds are mandatory to be lled up and Company may at its sole discreon reject the form
if it does not full the requirement of law
Mutual Funds specied
under clause (23D) of
secon 10 of the Act
Nil – For SEBI registered mutual funds, TDS would not be applied [NIL TDS].
– Declaraon (Annexure 1) to be provided along with self-aested copy of PAN Card and Registraon
cercate containing the SEBI registraon number duly updated in the demat account.
– Mutual Fund List of Folio numbers / accounts mapped to PAN
Insurance Companies Nil – No TDS would be applied for the dividend payable on the shares held by
Life Insurance Corporaon of India, the General Insurance Corporaon of India, the Naonal
Insurance Company Limited, the New India Assurance Company Limited, the Oriental Insurance
Company Limited and the United India Insurance Company Limited.
IRDA registered insurance companies, if Declaraon (Annexure 1) is provided along with self-
aested copy of PAN card and IRDA registraon number which is duly updated in the demat
account.
Category I and II AIF Nil – Declaraon (Annexure 1) that income of the AIF is exempt under secon 10(23FBA) of the Act as
it has been granted a cercate of registraon as a Category I or Category II AIF under the SEBI
(AIF) Regulaons, 2012
– Self-aested copy of PAN and valid SEBI registraon cercate
– Reference is drawn to Circular No. 18/2017 dated 29 May 2017 issued by the Government of India,
Ministry of Finance, Department of Revenue, Central Board of Direct Taxes as regards requirement
of tax deducon at source in case of enes whose income is exempt under secon 10 of the Act
Recognised Provident
Fund / Approved
Superannuaon Fund /
Approved Gratuity Fund
Nil – No TDS is required to be deducted as per Circular No.18/2017 dated 29 May 2017, issued by the
Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes as
regards requirement of tax deducon at source in case of enes whose income is exempt under
secon 10 of the Act subject to specied condions.
– Self-aested copy of a valid order from Commissioner under Rule 3 of Part A or Rule 2 of Part B
or Rule 2 of Part C of Fourth Schedule to the Act, or self-aested valid documentary evidence (e.g.
relevant copy of registraon, nocaon, order, etc.)
Naonal Pension Scheme Nil No TDS is required to be deducted as per Secon 197A(1E) of the Act. A Self- declaraon (Annexure
1) stang that the NPS is exempt under Secon 10 (44) is required.
Corporaon established
by or under a Central
Act, which is, under
any law for the me
being in force, exempt
from income-tax on its
income
Nil – Declaraon (Annexure 1) that it is a corporaon established by or under a Central Act whereby
income- tax is exempt on the income and accordingly, covered under secon 196 of the Act
– Self-aested copy of PAN, registraon cercate and relevant extract of the secon whereby the
income is exempt from tax
NOTICE TO SHAREHOLDERS
Annual Report 2022-23 15
Category of
Shareholders
Tax Rate Exempon Applicability/ Documentaon Requirement
Government (Central/
State)/ RBI
Nil – No TDS is required to be deducted as per Secon 196(i) & (ii) of the Act
Any other enty entled
to exempon from TDS
Nil Declaraon of the nature of enty (Annexure 1) and Valid self-aested documentary evidence (e.g.
relevant copy of registraon, nocaon, order, etc.) in support of the enty being entled to TDS
exempon
Resident shareholder
having lower / nil
withholding Order under
secon 197 of the Act
Rate
provided
as per
Order
Copy of PAN card
Lower/ Nil withholding tax cercate obtained from the Income-tax Authories
Declaraon (Annexure 2) for Sikkimese resident shareholder covered u/s 10(26AAA) of the Act
Other resident
shareholders without
registraon of PAN or
Inoperave PAN (Upon
failure to link PAN-
Aadhaar as per secon
139AA r.w. Circular No
3 of 2023) or having
Invalid PAN or a person
who is considered as
specied person u/s
206AB
20%
without
threshold
limit
Update valid PAN if not already done with depositaries (in case of shares held in Demat mode) and with
the Company’s Registrar and Transfer Agent (in case of shares held in physical mode).
Shareholders are requested to le their appropriate declaraons in the prescribed format with necessary self-aested documentary evidence using
the link at hps://www.integratedindia.in/ExemponFormSubmission.aspx.
Non-resident Shareholders:
Category of
Shareholders
Tax Rate Exempon Applicability/ Documentaon Requirement
Any non-resident
shareholders, FPIs,
FIIs [Who are not
‘Specied Persons’ as
referred / covered by
provisions of secon
206AB of the Act]
20% (plus
applicable
surcharge
and cess)
or Tax
Treaty rate,
whichever
is lower
Non-resident shareholders may opt for tax rate under the Double Taxaon Avoidance Agreement (‘Tax
Treaty’). The Tax Treaty rate may be applied for tax deducon at source on dividend declared by the
Company subject to submission of the following documentaon:
– Self-aested copy of PAN Card, if any, alloed by the Indian authories. In a case where no PAN has
been alloed, requisite informaon as per Rule 37BC (Annexure 8) of the Income-tax Rules, 1962
shall be furnished.
– Self-aested copy of Tax Residency Cercate [‘TRC’], evidencing and cerfying shareholder’s tax
residenal status during the Financial Year 2023-24 or calendar year 2023 valid as on the AGM date,
obtained from the tax authories of the country of which the shareholder is a resident
– Form 10F electronically submied and downloaded from the Income Tax Portal (www.incometax.gov.
in) if PAN is available. In case, PAN is not available, self-declaraon in Form 10F for FY 2023-24
– Self-declaraon in prescribed format (Annexure 3 for FII, FPI) (Annexure 9 for other non-resident
shareholders) containing the following clauses along with adequate documentary evidence
substanang the nature of the enty and eligibility to avail treaty benets:
● The Shareholder does not have a taxable presence or a permanent establishment in India or a
place of eecve management in India during the FY 2023-24
● The transacon/ arrangement/ investments from which the dividend is derived by the
shareholder is not arranged in a manner, as one of its principal purposes whether directly
or indirectly, to result in obtaining a tax benet. The tax benet, if any, derived from such
transacon/arrangement /investments would be in accordance with the object and purpose
of the provisions of the relevant Tax Treaty (‘the Principle Purpose Test’, if applicable to the
respecve Tax Treaty);
● The shareholder is the benecial owner of its shareholding in the Company and dividend
receivable from the Company
● The shareholder has no reason to believe that its claim for the benets of the Tax Treaty is
impaired in any manner;
(Note: Applicaon of benecial Tax Treaty Rate shall depend upon the completeness and sasfactory
review by the Company of the documents submied by the shareholders. In case the documents are
found to be incomplete, the Company reserves the right to not consider the tax rate prescribed under
the tax treaty).
NOTICE TO SHAREHOLDERS
16 Ashok Leyland Limited
Category of
Shareholders
Tax Rate Exempon Applicability/ Documentaon Requirement
Any enty entled to
exempon from TDS
Nil – Valid self-aested documentary evidence (e.g. relevant copy of registraon, nocaon, order, etc.
by the Indian tax authories) in support of the enty being entled to exempon from TDS
– Self-declaraon substanang the applicability of the secon to the enty
Tax resident of any
noed jurisdiconal
area
30% or rate
specied in
the relevant
provision of
the Act or
at the rates
in force,
whichever
is higher
(plus
applicable
surcharge
and cess)
– Where any shareholder is a tax resident of any country or territory noed as a noed jurisdiconal
area under secon 94A (1) of the Act, tax will be deducted at source @ 30% or at the rate specied
in the relevant provision of the Act or at the rates in force, whichever is higher, from the dividend
payable to such shareholder in accordance with Secon 94A (5) of the Act
Sovereign Wealth
Funds and Pension
funds noed by
Central Government
u/s 10(23FE) of the
Act
NIL – Copy of the nocaon issued by CBDT substanang the applicability of secon 10(23FE) of the
Act issued by the Government of India.
– Self-Declaraon (Annexure 5 / Annexure 6) that the condions specied in secon 10(23FE) have
been complied with
Subsidiary of Abu
Dhabi Investment
Authority (ADIA) as
prescribed under
secon 10(23FE) of
the Act
NIL – Self-Declaraon (Annexure 7) substanang the fullment of condions prescribed under secon
10(23FE) of the Act
Other non-resident
shareholders having
Order under secon
197 of the Act
Rate
provided in
the Order
– Lower / Nil withholding tax cercate obtained from the income tax authories
General:
Shareholders holding shares in dematerialized mode, are requested
to update their records such as tax residenal status, permanent
account number (PAN), complete residenal address, registered email
addresses, mobile numbers and other details with their relevant
depositories through their depository parcipants.
Transferring credit to the benecial owner - As per Rule 37BA, in the
case where the dividend is received in the hands of one person but is
assessable in the hands of other person, the tax may be deducted in
the name of such other person if the rst-menoned person provides a
declaraon as prescribed in this regard. The aforesaid declaraon shall
contain (i) name, address, PAN, and residenal status of the person to
whom credit is to be given; (ii) payment in relaon to which credit is
to be given; and (iii) the reason for giving credit to such person etc.
in the format provided in Annexure 10 & 10A. We request you to
provide any such details latest by July 12, 2023 at 5.00 PM and no
request will be entertained for documentaon received beyond the
specied date and me.
Shareholders holding shares in physical mode are requested to
furnish details to the Company’s registrar and share transfer agent.
The Company is obligated to deduct tax at source (TDS) based on
the records available with RTA and no request will be entertained for
revision of TDS return.
In order to enable us to determine the appropriate tax rate at which
tax has to be deducted at source under the respecve provisions of
the Income-tax Act, 1961, we request Resident Shareholders and Non-
Resident Shareholders to upload the details and documents referred to
in this Noce in the format provided by us and as applicable to you on
the link at hps://www.integratedindia.in/ExemponFormSubmission.
aspx
No communicaon on the tax determinaon / deducon, except for
the declaraon under Rule 37BA, shall be entertained beyond 5.00
p.m. on July 07, 2023.
Deducon of tax at a rate lower than statutory rate or no deducon
of tax shall depend upon the completeness of the documents and the
sasfactory review of the forms and the documents, submied by
Resident Shareholders, to the Company/RTA.
Please note that the Company is not obligated to apply the benecial
DTAA rates at the me of tax deducon/withholding on dividend
amounts. Applicaon of benecial DTAA Rate shall depend upon the
completeness and sasfactory review of the documents submied by
Non- Resident Shareholder/ FPI, to the Company/ RTA.
Incomplete and / or unsigned forms, declaraons and documents
will not be considered by the Company for granng any exempon.
Decision of the Company with respect to the validity of any document
will be nal.
In case of any discrepancy in documents submied by the Shareholder,
the Company will deduct tax at higher rate as applicable, without any
further communicaon in this regard. Tax deducted by the Company
is nal and the Company shall not refund /adjust the tax so deducted
subsequently.
NOTICE TO SHAREHOLDERS
Annual Report 2022-23 17
It may be further noted that in case the tax on dividend is deducted
at a higher rate in absence of receipt of the details/ documents, there
would sll be an opon available with the shareholder to le the
return of income and claim an appropriate refund, if eligible. No claim
shall lie against the Company for such higher taxes deducted.
In the event of any income tax demand (including interest, penalty,
etc.) arising from any misrepresentaon, inaccuracy or omission of
informaon provided/to be provided by the Shareholder(s), such
Shareholder(s) will be responsible to indemnify the Company and
also, provide the Company with all informaon / documents and co-
operaon in any appellate proceedings.
Explanatory statement pursuant to Secon 102 of the Companies Act,
2013 (‘the Act’)
As required under Secon 102 of the Act, the following Explanatory
Statement sets out all material facts relang to the businesses
menoned under item nos. 4 to 7 of the accompanying noce.
Item No. 4
Pursuant to the provisions of Secon 148 of the Act and Rule 14
of the Companies (Audit and Auditors) Rules, 2014, the Company is
required to appoint a Cost Auditor to audit the cost accounng records
of the applicable products of the Company. As per the said Rules, the
remuneraon payable to the Cost Auditor is required to be raed by
the Members of the Company. The Board of Directors of the Company
at its meeng held on May 19, 2022 had considered and approved the
appointment of Messers Geeyes & Co., Cost Accountants (Registraon
No. 000044) as the Cost Auditor of the Company for the nancial year
2022-23 on a remuneraon of ` 7,00,000/- (Rupees Seven lakhs only)
plus applicable taxes and out of pocket expenses incurred by them in
connecon with the audit.
None of the Directors or Key Managerial Personnel of the Company
and their relaves, is, in any way, concerned or interested, nancially
or otherwise, in the aforesaid resoluon.
The Board recommends the resoluon set forth in item no. 4 for the
approval/racaon of the Members.
Item No. 5
TVS Mobility Private Limited is one of the prominent dealers of the
Company’s products for the past many years. TVS Mobility Private
Limited (TVS Mobility) also conducts markeng, sales campaigns for
the Company’s products from me to me (as a service) which ensures
beer reach for the Company’s products.
Global TVS Bus Body Builders Limited (‘GTVS’), subsidiary of the
Company is a joint venture between the Company and TVS Mobility.
Ashok Leyland Limited (the Company/AL) holds 66.67% and TVS
Mobility holds 33.33% of the paid-up capital of GTVS. TVS Mobility is
a Related Party under Secon 2(76)(viii)(c) of the Act to GTVS by virtue
of it being the invesng company.
As per the denion of Related Party Transacons under Regulaon
2(zc) of the SEBI Lisng Regulaons, transacons between a listed
enty with the related pares of subsidiaries will be a Related Party
Transacon to the listed enty. Hence, all transacons between
the Company and TVS Mobility shall be treated as a Related Party
Transacon.
Further, pursuant to Regulaon 23(4) of the SEBI Lisng Regulaons,
transacons with a Related Party where the transacon(s) to be
entered individually or taken together with previous transacon(s)
during a nancial year exceeds ` 1,000 Crores or 10% of the annual
consolidated turnover as per last audited nancial statements,
whichever is lower, would be considered as Material Related Party
Transacons and such transacons require prior approval of the
Members through an Ordinary Resoluon.
Considering the quantum of transacons with TVS Mobility during the
previous years, the business projecons for FY 2024-25 and the market
trend, the Company expects that the aggregate value of transacons
with TVS Mobility during the FY 2024-25 is esmated to be in the
range of ` 9,000 Crores to ` 10,000 Crores. Hence, approval of the
Members of the Company is sought by way of an Ordinary Resoluon
for the transacons with TVS Mobility, for the FY 2024-25.
Members are requested to note that the transacons between the
Company and TVS Mobility would be in the ordinary course of business
and at arm’s length basis.
The parculars of the transacon(s) as required under Regulaon 23 of
the SEBI Lisng Regulaons read with SEBI Circular dated November 22,
2021 on disclosure obligaons in relaon to Related Party Transacons
is provided as Annexure to this Noce.
The Audit Commiee and the Board of Directors at their respecve
meengs held on May 22, 2023 and May 23, 2023 have recommended
the Material Related Party Transacons with TVS Mobility for
consideraon and approval by the Members.
The Audit Commiee and the Board of Directors are of the opinion
that the arrangements are commercially benecial to the Company and
hence the transacons are in the best interest of the Company.
It may be noted that no related party shall vote to approve this Resoluon
whether the enty is a related party to the transacon or not.
None of the Directors and Key Managerial Personnel of the Company
and their relaves are, in any way interested or concerned, nancially
or otherwise in the aforesaid Resoluon.
The Board recommends the resoluon set forth in item no. 5 for the
approval of the Members.
Item No. 6
Switch Mobility Automove Limited (SWITCH) is a step-down subsidiary
of the Company, manufacturing and dealing in Electric Vehicles.
The Company in the normal course of business undertakes transacons
with SWITCH covering sale & purchase of vehicles, spares, engines,
materials, assets, technology, rendering and/or availing of services,
sharing of resources, issuance of guarantees, loans etc.
SWITCH, being a step-down subsidiary of the Company is a Related
Party and hence all transacons between the Company and SWITCH
are Related Party Transacons.
Pursuant to the Regulaon 23(4) of the SEBI Lisng Regulaons,
transacons with a Related Party where the transacon(s) to be
entered individually or taken together with previous transacon(s)
during a nancial year exceeds ` 1,000 Crores or 10% of the annual
consolidated turnover as per last audited nancial statements,
whichever is lower, would be considered as Material Related Party
Transacons and such transacons require prior approval of the
Members through an Ordinary Resoluon.
NOTICE TO SHAREHOLDERS
18 Ashok Leyland Limited
Considering the operaonal and business requirements of SWITCH
and the support required from the Company in the form of loan,
Corporate Guarantee/Leer of Comfort/Leer of Support/Leer of
Awareness, or whatever name called etc., the Company expects
that the aggregate value of transacons between the Company and
SWITCH during the FY 2023-24 will be in excess of ` 1,000 Crores and
is esmated to be in the range of ` 4,000 Crores to ` 5,000 Crores.
Hence, approval of the Members of the Company is sought by way
of an Ordinary Resoluon for the transacons with SWITCH for the
FY 2023-24.
Members are requested to note that the transacons between the
Company and SWITCH would be in the ordinary course of business and
at arm’s length basis.
The parculars of the transacon(s) as required under Regulaon 23 of
the SEBI Lisng Regulaons read with SEBI Circular dated November 22,
2021 on disclosure obligaons in relaon to Related Party Transacons
is provided as Annexure to the Noce.
The Audit Commiee and the Board of Directors at their respecve
meengs held on May 22, 2023 and May 23, 2023 have recommended
the Material Related Party Transacons with SWITCH for consideraon
and approval by the Members.
The Audit Commiee and the Board of Directors are of the opinion
that the Related Party Transacons with SWITCH are in the best
interest of the Company.
It may be noted that no related party shall vote to approve this Resoluon
whether the enty is a related party to the transacon or not.
Except for Mr. Dheeraj G Hinduja, Execuve Chairman and Mr. Gopal
Mahadevan, WTD & CFO (by virtue of being Directors in SWITCH),
none of the Directors or Key Managerial Personnel of the Company
and their relaves, is, in any way, concerned or interested, nancially
or otherwise, in the aforesaid resoluon.
The Board recommends the resoluon set forth in item no. 6 for the
approval of the Members.
Item No. 7
SEBI vide nocaon dated February 2, 2023 has noed the SEBI (Issue
and Lisng of Non-Converble Securies) (Amendment) Regulaons,
2023 (hereinaer referred to as SEBI Amendment).
The amendments noed include the requirement for companies
who have listed Non-Converble Debentures, to specically have a
clause in its Arcles of Associaon, enabling appointment of a person
as a Director nominated by a Debenture Trustee in case of default
of interest/principal/creaon of security etc. Regulaon 15(1)(e) of
SEBI (Debenture Trustees) Regulaons, 1993 applicable to Debenture
Trustees, prescribes the duty of a Debenture Trustee to appoint a
Nominee Director on the Board of the company in the event of
default in payment of interest, creaon of security for debentures or
redempon of debentures.
The SEBI Amendment further states that an Issuer whose debt
securies are listed as on February 2, 2023 (date of nocaon of this
amendment) is required to amend its Arcles of Associaon to comply
with this provision, on or before September 30, 2023.
Since the Company has listed Non-Converble Debentures, it is required
to have the relevant clause in the Arcles of Associaon. Accordingly,
the Arcles of Associaon of the Company is being amended by
inseron of Arcle 137A in the following manner.
137A. In the event of any default as stated in Regulaon 15(1)(e)
of the Securies and Exchange Board of India (Debenture Trustees)
Regulaons, 1993 (as amended from me to me), the debenture
trustee(s) may exercise the right and power to appoint a person to be
a Director of the Company liable to rere by rotaon. Any person(s) so
appointed, may at any me, be removed by such debenture trustee(s)
and any such appointment or removal shall be in wring, signed by
such debenture trustee(s) and served on the Company.
Pursuant to Secon 14 and other applicable provisions, if any, of the
Act, approval of the Members of the Company is required for altering
the Arcles of Associaon of the Company through a Special Resoluon.
The Board at its meeng held on May 23, 2023 has recommended the
adopon of the amended Arcles of Associaon. A copy of Arcles of
Associaon of the Company with the proposed alteraon is available
for inspecon at the Registered Oce of the Company at any working
day during business hours and is also uploaded on the website of the
Company www.ashokleyland.com.
None of the Directors or any Key Managerial Personnel of the Company
and their relaves are, in anyway, interested or concerned, nancially
or otherwise in the aforesaid resoluon.
The Board recommends the resoluon set forth in item no. 7 for the
approval of the Members.
By Order of the Board
Chennai N Ramanathan
May 23,2023 Company Secretary
Registered Oce:
1, Sardar Patel Road, Guindy
Chennai - 600 032
CIN: L34101TN1948PLC000105
Tel: +91 44 2220 6000; Fax: +91 44 2220 6001
E-mail: [email protected]
Website: www.ashokleyland.com
NOTICE TO SHAREHOLDERS
Annual Report 2022-23 19
ANNEXURE TO THE NOTICE
DISCLOSURE UNDER REG. 36(3) OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AND CLAUSE 1.2.5 OF
SECRETARIAL STANDARDS ON GENERAL MEETINGS
Name of the Director Mr. Gopal Mahadevan
Date of Birth and Age May 20, 1966; 57 years
Date of Appointment May 24, 2019
Qualicaons B.Com, FCA, ACS
Experse in Specic funconal areas With over 34 years of experience across a spectrum of industries, Mr. Gopal Mahadevan has worked
in Manufacturing, Internet Services, Financial Services, Chemical Industries and Project Companies.
Mr. Gopal Mahadevan joined Ashok Leyland Limited as Chief Financial Ocer (CFO) in July 2013,
and has been one of the core team members leading the turnaround and growth of the Company.
Currently, aside of being CFO, he also leads the IT Funcon. He is a Member of the Board of several
subsidiaries and associate companies of Ashok Leyland Limited.
Earlier to Ashok Leyland Limited, he was Chief Financial Ocer at Thermax Ltd and Amara Raja
Baeries Ltd. Mr. Gopal Mahadevan has worked in diverse roles in Sanmar Group and was General
Manager M&A at Sify Ltd.
In one of the earlier organisaons, Mr. Gopal Mahadevan had also handled HR and Strategy as
addional responsibilies.
Mr. Gopal Mahadevan has received several awards and recognions including from the Instute of
Chartered Accountants of India.
Board Membership of other Companies
as on date of the Noce
(i) Hinduja Tech Limited
(ii) Hinduja Leyland Finance Limited
(iii) Hinduja Housing Finance Limited
(iv) Gro Digital Plaorms Limited
(v) Switch Mobility Automove Limited
(vi) Optare Plc, U.K.
(vii) Lanka Ashok Leyland Limited
Chairmanship(s)/Membership(s) of
Commiees of other Companies as on
date of the Noce
(1) Lanka Ashok Leyland Limited
(a) Audit Commiee (Member)
(b) Related Party Transacons Review Commiee (Member)
(2) Hinduja Tech Limited
(a) Audit Commiee (Member)
(3) Hinduja Leyland Finance Limited
(a) Audit Commiee (Member)
(b) Credit Commiee(Member)
(c) Asset Liability Management Commiee (Member)
(d) Capital Raising Commiee (Chairman)
(e) Risk Management Commiee (Member)
(4) Optare Plc., U.K.
(a) Audit Commiee (Chairman)
(5) Hinduja Housing Finance Limited
(a) Nominaon and Remuneraon Commiee (Member)
(b) Audit Commiee (Member)
(c) Risk Management Commiee (Chairman)
(d) Corporate Social Responsibility Commiee (Member)
(6) Switch Mobility Automove Limited
(a) Allotment Commiee (Member)
(b) Audit Commiee (Member)
(7) Gro Digital Plaorms Limited
(a) Capital Raising Commiee (Member)
(b) Audit Commiee (Member)
Number of shares held in the Company
(self and as a benecial owner)
20,620 equity shares
Remuneraon proposed to be paid Refer Corporate Governance Report
Remuneraon last drawn Refer Corporate Governance Report
Terms and condions of appointment Liable to rere by rotaon and being eligible, Mr. Gopal Mahadevan is proposed to be re-appointed
at the AGM.
Relaonship with other Directors or
KMP of the Company
Nil
Number of meengs of the Board
aended
Refer Corporate Governance Report
Note: Mr. Gopal Mahadevan has not resigned from any listed enty in the last three years (as required under Regulaon 36(3)(d) of SEBI Lisng
Regulaons).
NOTICE TO SHAREHOLDERS
20 Ashok Leyland Limited
DISCLOSURE PURSUANT TO SEBI CIRCULAR DATED NOVEMBER 22, 2021
Parculars of the transacon(s) as required pursuant to the provisions of the Act and SEBI Circular dated November 22, 2021 are as under:
Name of the Related Party TVS Mobility Private Limited Switch Mobility Automove Limited (SWITCH)
Relaonship with the Company or its
subsidiary, including nature of its concern or
interest (nancial or otherwise)
TVS Mobility Private Limited is a Related Party
under Secon 2(76)(viii)(c) of the Act to Global
TVS Bus Body Builders Limited (Company’s
Subsidiary) and hence transacons between
the Company and TVS Mobility is a Related
Party Transacon pursuant to regulaon 2(zc)
of SEBI Lisng Regulaons.
SWITCH is a step-down subsidiary of the
Company.
Nature, material terms, parculars of the
contract or arrangements; and monetary Value
Sale of vehicles/spares/recondioned engines/
services, payment of incenves & commission,
warranty, sales promoon etc.
Transacons entered between the pares will
exceed ` 1,000 Crore or 10% of the annual
consolidated turnover as per the last audited
nancial statements, whichever is lower and
is esmated to be in the range of ` 9,000 to
` 10,000 Crores for the FY 2024-25.
Sale and purchase of goods/vehicles/spares/
engines/materials/service/assets/technology,
tesng charges, Contract manufacturing,
Resource sharing/IT Sharing /Tooling any other
sharing, Rental Income, Fee for Corporate
Guarantee, Trade Advance, Subcontracng, Short
term advance loan, Inter-Corporate Deposit and
Interest, providing guarantees, Leer of Support,
Leer of comfort, Leer of undertaking or any
other support, Reimbursement / Recovery
of expenses, Royalty, investments directly or
indirectly made and any other transacons for
a value in excess of ` 1,000 Crores or 10% of
the annual consolidated turnover as per the
last audited nancial statements, whichever is
lower and is esmated to be in the range of
` 4,000 Crores to ` 5,000 Crores for FY 2023-24.
Tenure of the proposed transacon One year (2024-25) and recurring in nature One year (2023-24) and recurring in nature
The percentage of the listed enty’s annual
consolidated turnover, for the immediately
preceding nancial year, that is represented
by the value of the proposed transacon
(and for an RPT involving a subsidiary, such
percentage calculated on the basis of the
subsidiary’s annual turnover on a standalone
basis shall be addionally provided)
In excess of 10% of the annual consolidated
turnover of the Company as per the last
audited nancial statements.
In excess of 10% of the annual consolidated
turnover of the Company as per the last
audited nancial statements.
The percentage of the subsidiary company’s
standalone turnover for the immediately
preceding nancial year, that is represented
by the value of the proposed transacon
Not applicable In excess of 10% of the annual standalone
turnover of the subsidiary as per the last
audited nancial statements.
Whether the transacon relates to any
loans, inter-corporate deposits, advances or
investments made or given by the listed enty
or its subsidiary
Not applicable The approval is sought for Related Party
Transacons with SWITCH which also covers
transacons relang to nancial commitments
in any form like Equity, Loans/ Advances,
guarantees, etc. made directly or indirectly.
Details of the source of funds in connecon
with the proposed transacon
Not applicable Through internal accruals.
a) where any nancial indebtedness
is incurred to make or give loans,
inter corporate deposits, advances or
investments
- nature of indebtedness
- cost of funds; and
- tenure
Not applicable Since the nancial commitments would be
undertaken through internal accruals, value of
indebtedness, cost of funds and tenure is not
applicable.
b) applicable terms including covenants,
tenure, interest rate and repayment
schedule, whether secured or unsecured,
if secured, the nature of security; and
Not applicable The terms would be as mutually agreed
between the pares. The interest/ fee charged
thereon will be in line with the prevailing
market rates at the me of issuance and on
arm’s length basis.
NOTICE TO SHAREHOLDERS
Annual Report 2022-23 21
Name of the Related Party TVS Mobility Private Limited Switch Mobility Automove Limited (SWITCH)
c) the purpose for which the funds will be
ulised by the ulmate beneciary of
such funds pursuant to the related party
transacons
Not applicable Fund based support will be extended to cover
capital expenditure (wherever applicable),
operang expenditure, general corporate
purposes and working capital requirements.
Non-fund-based support will be extended
to cover the lenders/banking facilies and
counter guarantees to be given as a parent to
end customers.
Juscaon as to why the RPT is in the
interest of the listed enty
TVS Mobility Private Limited is one of the
prominent dealers of the Company on pan
India basis and hence the transacons with
TVS Mobility Private Limited are commercially
benecial and in the best interest of the
Company.
SWITCH is in the technology intensive
Electric Vehicle business and in its inial few
years require support from the Company
for its working capital and other business
requirements. Further, in addion to the
capital support, the Company shall also
undertake transacons viz., purchase/sale
of materials, availing/rendering of services,
sharing of resources, providing loans,
Corporate Guarantee, leer of support, leer
of comfort etc., to enable SWITCH manage its
business and raise resources at compeve
costs. These transacons would support
SWITCH in furthering its business interest of
execung the orders in hand, will also enable
the Company’s electric mobility business
iniave in the long run and help gain market
share and foothold in the future strategy of
the Company.
Valuaon or any other external party report, if
any such report has been relied upon
Not applicable Not applicable
Name of Director (s) or Key managerial
personnel who is related, if any
None Mr. Dheeraj G Hinduja and Mr. Gopal
Mahadevan are Directors on the Board of
SWITCH.
NOTICE TO SHAREHOLDERS
22 Ashok Leyland Limited
BOARD’S REPORT
To the Members,
PERFORMANCE / OPERATIONS
Your Directors have pleasure in presenng the Annual Report of Ashok Leyland Limited (“AL”/ “the Company”) along with the Audited Financial
Statements for the nancial year ended March 31, 2023.
FINANCIAL RESULTS
(` in Crores)
Standalone Consolidated
2022-23 2021-22 2022-23 2021-22
Revenue from operaons 36,144.14 21,688.29 41,672.60 26,237.15
Other Income 116.14 76.13 110.77 86.81
Total Income 36,260.28 21,764.42 41,783.37 26,323.96
Prot/(Loss) before tax 2,110.40 527.61 2,268.59 (199.59)
Less: Tax expenses/(Credit) 730.29 (14.22) 906.93 85.86
Prot/(Loss) aer tax 1,380.11 541.83 1,361.66 (285.45)
Balance prot from last year 3,798.94 3,459.91
Prot available for appropriaon 5,179.05 4,001.74
Appropriaon:
Dividend paid during the year (293.55) (176.13)
Transion adjustment and other adjustment
Other Comprehensive (Loss)/Income arising from re-
measurement of dened benet plan (net of tax)
(10.36) (26.67)
Balance of prot carried to Balance sheet 4,875.14 3,798.94
Earnings per share (Face value of ` 1/-)
- Basic (`) 4.70 1.85 4.23 (1.22)
- Diluted (`) 4.70 1.84 4.22 (1.22)
COMPANY’S PERFORMANCE
In FY23, the Commercial Vehicle market (MHCV & LCV) in India further
grew by 34.3% YoY in total industry volumes (TIV) aer increasing by
26.0% in the previous year to 962,468 units from 716,566 units. This
growth was led by 49.2% growth in M&HCV segment which grew to
359,003 units from 240,577 units. The LCV segment grew by 26.8%
to 603,465 units from 475,989 units in FY22.The growth this year was
led by M&HCV segment which grew faster while LCV segment grew by
26.8%. On the other hand, the exports was less by 14.8% over last year
at 78,645 units from 92,297 units last year.
Your Company sold 114,247 M&HCVs in the domesc market (10,767
M&HCV Buses and 103,480 M&HCV Trucks including Defence vehicles),
registering a growth of 75.5% over last year. LCV with sales of 66,669
vehicles grew by 27.7% over the previous year.
Your Company’s sale in M&HCV Trucks segment (excluding Defence
vehicles) in India grew by 68.6% to 102,753 units in FY23, as compared
to 60,947 units in FY22. Your Company launched key products in MHCV
– Trucks (Domesc) that include Ecomet Star 1815HE, the rst-in-
industry 2620 6X2 LA, Partner Super, 42T & 44T Tractors which helped
AL consolidate market posion in respecve segments. Your Company’s
sale in M&HCV Bus segment (excluding Defence vehicles) in India grew
signicantly to 10,764 units in FY23, from 3,018 units in FY22 consequent
to revival in bus demand. Your Company launched key products in
MHCV – Bus (Domesc) that include 13.5M Intercity coach, Oyster ZX,
Viking CNG, LS< CNG. Your Company launched ‘ELITE’ – Key Account
Engagement Program for its MHCV customers while Digital Iniave
‘LeyKart’ partnered with India Post to service all pin-codes across India.
The Aermarket business showed a growth of 22.0% over last year. Your
Company added 75 new outlets during the year, bringing the total count
to 805 AL touch-points with connued focus on Northern and Eastern
regions of India.
In LCV, your Company achieved highest ever sales of 66,617 vehicles
registering a growth of 27.6% over last year with launches of two new
products under the Bada Dost plaorm - Bada Dost i1 (2.5T) & Bada
Dost i2 (2.8T). FY23 saw launch of several new iniaves like micro
dealerships, rural markeng focus and support for used vehicles, all
of which are aimed at further increasing market penetraon. 23 new
dealerships and 80 new secondary outlets were added taking the
network coverage to a total of 617 outlets. In IO, your Company grew
marginally by 2.5% to 11,289 units in FY23, as compared to 11,014 units
in FY22. SAARC, which contributes to 56% of the sales, saw a 51% drop
in TIV. Most African countries too faced severe headwinds in terms of
currency depreciaon and forex availability leading to severe cut in the
import of CVs. On the other hand, GCC was the market that grew by
55% in TIV, boosted by increased infra spending backed by elevated
crude oil prices and post-covid pent up demand for school buses.
Your Company has achieved sales of 22,925 engines in Power Soluons
Business supported by new business development with corporates
and equipment manufacturers. Your Company supplied 782 units
of completely built-up units (CBUs) in the Defence segment. Some
highlights include seeding BAGH variants in DGBR (Directorate General
Border Roads); Supply of Superstallion 4x4 (RIV – Rapid Intervenon
Vehicle) to Indian Navy and delay in VFJ kits RFP due to MoD Policy
change from direct indent to trade route.
Highlights of performance are discussed in detail in the Management
Discussion and Analysis Report aached as Annexure F to this Report.
During the year, there has been no change in the nature of the
business of the Company.
Annual Report 2022-23 23
BOARD’S REPORT
SHARE CAPITAL
During the year under review, the Nominaon and Remuneraon
Commiee (NRC) issued and alloed 6,00,000 equity shares of face
value ` 1/- each upon exercise of stock opons granted under Ashok
Leyland Employees Stock Opon Plan 2016.
Consequent to the above allotment, the paid-up equity share capital
of the Company stands increased from ` 2,935,527,276/- divided into
2,935,527,276 equity shares of ` 1/- each to ` 2,936,127,276/- divided
into 2,936,127,276 equity shares of ` 1/- each.
DIVIDEND
In line with the policy, your Directors have recommended a dividend of
` 2.60/- per equity share of face value of ` 1/- each for the nancial
year ended March 31, 2023 involving an oulow of ` 763.39 Crores.
The Dividend Distribuon Policy framed in line with Regulaon 43A
of SEBI (Lisng Obligaons and Disclosure Requirements) Regulaons,
2015 (“SEBI Lisng Regulaons”) is hosted on the Company’s website
at hps://www.ashokleyland.com/backend/in/wp-content/uploads/
sites/2/2021/01/Dividend_Distribuon_Policy.pdf#toolbar=0
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL
POSITION OF THE COMPANY BETWEEN THE END OF THE FINANCIAL
YEAR AND THE DATE OF THE REPORT
There are no material changes and commitments aecng the nancial
posion of the Company between the end of the nancial year and the
date of this Report.
TRANSFER TO RESERVES
Your Company does not propose to transfer amounts to the general
reserve out of the amount available for appropriaon.
FINANCE
Long term funding
(a) Secured Non-Converble Debentures (NCDs):
During the year under review, no fresh NCDs were issued by your
Company. No redempons were made during the year.
(b) Rupee Term Loans:
No fresh rupee term loans were availed during the year. Your
Company has repaid ` 137.50 Crores on due dates as per the
repayment schedule and terms of the loan agreement.
(c) External Commercial Borrowings (ECBs):
During the year under review, your Company has not availed any
fresh ECBs. Your Company has repaid ` 238.44 Crores on due dates
as per the repayment schedule and terms of the loan agreement.
As at March 31, 2023, Long term borrowings stood at ` 2,913.47
Crores as against ` 3,245.25 Crores on March 31, 2022. Details
pertaining to the credit rang of the debt instruments are
provided in the Corporate Governance report.
HUMAN RESOURCES
We at Ashok Leyland pride ourselves of providing opportunies
regardless of race, gender, ability and background. While our vision,
mission and values form the bedrock on which our promise is built,
it is our strong and posive culture that enables us to work towards
that common goal. We connue to groom talent with the requisite
competencies to empower them to perform their roles eecvely, while
we connue to drive diversity, inclusion and equity in our workplace.
Some of the key people iniaves undertaken during the year include:
● Dening the “The Ashok Leyland Way” and the purpose of
“Transforming Lives & Businesses through Leadership in Mobility”.
This was cascaded to execuves in the organizaon through selected
Culture Champions, who were trained on ‘The Ashok Leyland Way’-
Purpose, Culture and Values workshop. This was further reinforced
through a sustained ‘internal’ communicaon campaigns.
● AL-Young Talent Program (AL-YTP) & AL-Emerging Leaders
Program (AL-ELP) was launched. Execuves were selected
through a rigorous three stage assessment process and are
undergoing a 12-month development journey. Learning journey
includes business crical projects, peer learning, outbound –
experienal learning, leadership interacons.
● Building future ready talent through channelized Learning &
development was undertaken. Learning Sprint launched for
culvang a culture of learning through quarterly learning weeks
with talk shows by leaders, team-based learning events, gamied
simulaons and new Learning experience plaorm by Disprz .
● Nurtured an environment of Recognion and appreciaon through
dedicated plaorms for recognion like Funconal excellence
awards, Chairman Award, Improve, Long Service Awards etc.
● Targeted sessions on Health & Wellness like Yoga Sessions,
Session on Ausm, Health check-ups, Doctors talks, Mindfulness &
Meditaon, Diabetes care and Cancer awareness were conducted.
● Long term selement signed in Bhandara Unit, covering
372 associates, with specic clauses focusing on exibility in
operaons, Quality, Safety, Total employee involvement etc.,
linked with variable payment for Associates.
● Bonus / Ex-graa for FY22 concluded and memorandum of
understanding was signed covering 8 manufacturing plants.
EMPLOYEE HEALTH & SAFETY (EHS)
Your Company is commied to enhancing the EHS process maturity
connuously to embrace it as the culture of Ashok Leyland. All
manufacturing plants were assessed by CII on EHS process maturity
which laid a foundaon for learning and securing 13 CII EHS awards
(3 – Gold, 4 – Silver, 2 – Bronze & 4 – special category) as part of
the EHS excellence. Through parcipaon in various forums, your
Company connues to re-evaluate and assess its performance to
reach the next level. Your Company iniated a organisaon-wide cross
funconal iniave “Manthan” aimed at Operaonal Excellence. Under
this iniave your Company implemented strategies and programs to
build safety culture across AL. This has aided in reducing the risks and
incidents of personnel injuries.
Towards seamless execuon of the EHS system and driving best EHS
pracces across Ashok Leyland, ‘Corporate EHS Funcon’ has been
formed. As part of seng up benchmark safety standards, your
Company idened the Foundry Sriperumbudur plant as a model plant
and rigorous acons are in progress with the commitment across all
levels from workman to senior-most execuve.
Your Company has instuted rigorous monitoring and review
mechanism of EHS performance through the EHS council meengs
(inclusive of a Board member) on a monthly basis. Health & Safety is
monitored through tracking of leading and lagging indicators.
24 Ashok Leyland Limited
BOARD’S REPORT
CORPORATE GOVERNANCE
Your Company is commied to maintain the highest standard of
Corporate Governance. All the Directors and the Senior Management
personnel have armed in wring their compliance with and adherence
to the Code of Conduct adopted by the Company.
The Annual Report of the Company contains a cercate by the
Managing Director and Chief Execuve Ocer (MD & CEO) in terms of
SEBI Lisng Regulaons on the compliance declaraons received from
the Directors and the Senior Management personnel and is aached
as Annexure. The Corporate Governance Report is aached as
Annexure C to this Report.
The Company has obtained a cercate from a Pracsing Company
Secretary conrming compliance with the Corporate Governance
requirements, as per SEBI Lisng Regulaons. The cercate in this
regard is aached as Annexure D to this Report.
The cercaon from MD & CEO / Chief Financial Ocer as required under
the SEBI Lisng Regulaons is aached as Annexure G to this Report.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
Your Company is commied to climate change targets and in this
endeavor, was one of the rst auto companies to instute an ESG
Commiee at the Board level to drive ESG iniaves right at the
strategic level.
As part of a holisc approach to sustainability, your Company has
developed an ESG vision: “To create and lead sustainable pracces,
across Environment, Social and Governance iniaves, delivering
outstanding stakeholder value.” This vision has been further
operaonalized to 10 Focus areas deep diving individually in E, S, and
G areas. Focus areas have been chosen based on a detailed baselining
and benchmarking exercise. Your Company believes sustainability is key
to its overall strategy and moving from compliance to compeveness
in the overall ESG approach.
Your Company strives to bring technologically innovave and
operaonally ecient commercial vehicles and products to our
customers and as part of that, took a major stride in developing
technology on alternate fuels such as CNG, Biofuel, and Hydrogen. As
part of a special global EV-only organizaon Switch Mobility focuses to
democraze green mobility and towards zero carbon mobility.
It is equally clear that your Company meets the demand for these
ecient products through ecient manufacturing operaons that
are environmentally more sustainable and socially responsible. Our
ambion is to be at the forefront and lead this through improving our
energy producvity, increasing our renewable energy share, reducing
scope 1 and scope 2 Greenhouse gas emissions, water producvity,
resource eciency, biodiversity, ergonomic pracces, and conformance
to global safety standards. We aspire to extend this across our value
chain of suppliers, dealers, and customers and reduce our overall
Scope 3 emissions in the long term.
As part of CSR, the community development iniave of Ashok
Leyland’s “Road to School” focuses on educaon, health, hygiene,
nutrion, and facilies development in government schools that are
situated in and around our facilies. The vision of the Road to School
program is to “provide holisc development opportunies focused on
quality and inclusion leading to educaon as a social leveler”. As of end
FY23, our “Road To School” program had covered 1,373 schools and
beneed 150,786 students across 5 Indian states.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
As spulated under Regulaon 34 of the SEBI Lisng Regulaons, the
Business Responsibility and Sustainability Report (BRSR) describing the
iniaves taken by the Company from an environmental, social and
governance perspecve is aached as Annexure K to this Report.
CONSOLIDATED FINANCIAL STATEMENTS
Pursuant to Secon 129(3) of the Companies Act, 2013 (“the Act”) and
SEBI Lisng Regulaons, the Consolidated Financial Statements prepared
in accordance with the Indian Accounng Standards prescribed by the
Instute of Chartered Accountants of India, is aached to this report.
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
The Company has 35 Subsidiaries, 6 Associates and 3 Joint Ventures
as on March 31, 2023. Hinduja Leyland Finance Limited (“HLFL”) is a
material unlisted subsidiary of the Company.
During the year under review, the Board of Directors of HLFL
have approved the Scheme of Merger by absorpon of HLFL into
NXTDIGITAL Limited, subject to the receipt of approvals from statutory
and regulatory authories, respecve shareholders and creditors at
a share exchange rao of Twenty-ve equity shares of face value of
` 10/- each of NXTDIGITAL for every Ten equity shares of face value
of ` 10/- each held in HLFL. The merger is under progress and the
updates on the same would be inmated to the Stock Exchanges, as
required under the SEBI Lisng Regulaons.
During the year, HLFL alloed equity shares to Qualied Instuonal
Buyers on preferenal basis. Consequently, the Company’s shareholding
in HLFL has decreased from 68.80% to 60.42%.
During the year under review, Hinduja Tech Limited (HTL), a subsidiary
of the Company, acquired Drive System Design Limited (DSD), an
award-winning and globally trusted engineering consultancy known for
developing innovave soluons for electried propulsion systems.
During the year, HTL alloed equity shares to Hinduja Automove
Limited, U.K. on preferenal basis. Consequently, the Company’s
shareholding in HTL decreased from 98.76% to 74.25%. As at
March 31, 2023, the Company's shareholding in HTL stands at 73.83%.
The Company had also invested an amount of ` 16.42 Crores in equity
shares of Ashley Aviaon Limited (AAL), a wholly-owned subsidiary.
Further, during the year, AAL had redeemed preference shares of
` 5.80 Crores issued to the Company. The Company had also invested
` 3.40 Crores in the equity shares of Vishwa Buses and Coaches
Limited, a wholly-owned subsidiary.
During 2021-22, the Company transferred its Electric Vehicle business
to Switch Mobility Automove Limited (SMAL), step-down subsidiary
of the Company on slump sale basis through a Business Transfer
Agreement. In March 2023, SMAL has seled the dues under the
Business Transfer Agreement including the slump sale consideraon
and the interest accrued thereon aggregang to ` 301 Crores through
issuance of 3,01,00,000 8.5% Non-Cumulave Non-Converble
Redeemable Preference Shares of ` 100/- each.
A report on the performance and nancial posion of each of the
subsidiaries, associates and joint venture companies is provided
in the notes to the consolidated nancial statements. Pursuant to
the provisions of Secon 129(3) of the Act, read with Rule 5 of the
Companies (Accounts) Rules, 2014, a statement containing salient
Annual Report 2022-23 25
BOARD’S REPORT
features of the nancial statements of the Company’s subsidiaries,
associates and joint ventures in Form AOC-1 is aached to the nancial
statements of the Company.
Pursuant to the provisions of Secon 136 of the Act, the nancial
statements of the Company, consolidated nancial statements along
with relevant documents and separate audited nancial statements
in respect of the subsidiaries are available on the website of the
Company at hps://www.ashokleyland.com/in/en/investors/investor-
informaon/performance-reports
The Company has formulated a Policy for determining Material
Subsidiaries. The Policy is available on the Company’s website and can
be accessed at hps://www.ashokleyland.com/backend/in/wp-content/
uploads/sites/2/2023/05/Material-Subsidary-Policy.pdf#toolbar=0
DIRECTORS AND KEY MANAGERIAL PERSONNEL
During the year under review, the Board of Directors at their meeng
held on December 8, 2022 had appointed Mr. Shenu Agarwal (DIN:
03485730) as the Managing Director and Chief Execuve Ocer of the
Company for a period of 5 years with eect from December 8, 2022
to December 7, 2027, which was approved by the Members through
Postal Ballot on January 21, 2023.
Dr. Andrew C Palmer, Non-Execuve Non-Independent Director of the
Company resigned from the Board with eect from November 3, 2022.
The Board wishes to place on record its appreciaon for the valuable
contribuons made by him to the Board and the Company during his
tenure.
The Company has received declaraons from all the Independent
Directors of the Company conrming that they meet the criteria of
independence prescribed under the Secon 149(6) of the Act and
Regulaon 16(1)(b) of SEBI Lisng Regulaons and they have registered
their names in the Independent Directors’ Databank. Further, there has
been no change in the circumstances which may aect their status as
Independent Director during the year. The terms and condions of
appointment of the Independent Directors are placed on the website
of the Company at hps://www.ashokleyland.com/in/en/investors/
investor-informaon/compliances-under-the-companies-act-2013
Mr. Gopal Mahadevan, Director reres by rotaon at the forthcoming
Annual General Meeng (“AGM”) and being eligible, oers himself for
re-appointment. The resoluons seeking approval of the Members for
his re-appointment has been incorporated in the Noce convening the
AGM of the Company along with brief details about him.
The Company has disclosed the Director’s familiarizaon programme
on its website at hps://www.ashokleyland.com/in/en/investors/
investor-informaon/familiarizaon-to-directors
During the year, Non-Execuve Directors had no pecuniary relaonship
or transacons with the Company, other than sing fees, commission
and reimbursement of expenses incurred by them for aending
meengs of the Company.
Pursuant to the provisions of Secon 2(51) and 203 of the Act, the
Key Managerial Personnel of the Company are Mr. Shenu Agarwal,
Managing Director and Chief Execuve Ocer, Mr. Gopal Mahadevan,
Whole-me Director and Chief Financial Ocer and Mr. N. Ramanathan,
Company Secretary.
DIRECTORS’ RESPONSIBILITY STATEMENT
Pursuant to the provisions of Secon 134(5) of the Act, the Board of
Directors, to the best of their knowledge and ability, conrm that:
a) in the preparaon of the annual nancial statements for the year
ended March 31, 2023, the applicable Accounng Standards had
been followed along with proper explanaon relang to material
departures;
b) for the nancial year ended March 31, 2023, such accounng
policies as menoned in the Notes to the nancial statements
have been applied consistently and judgments and esmates that
are reasonable and prudent have been made so as to give a true
and fair view of the state of aairs of the Company at the end
of the nancial year and of the prot of the Company for the
nancial year ended March 31, 2023;
c) proper and enough care has been taken for the maintenance of
adequate accounng records in accordance with the provisions
of the Act for safeguarding the assets of the Company and for
prevenng and detecng fraud and other irregularies;
d) the annual nancial statements have been prepared on a going
concern basis;
e) proper internal nancial controls were followed by the Company
and that such internal nancial controls are adequate and were
operang eecvely;
f) proper systems devised to ensure compliance with the provisions
of all applicable laws were in place and that such systems were
adequate and operang eecvely.
AUDITORS
Statutory Auditors
The Board of Directors of the Company at their meeng held on
May 19, 2022 re-appointed M/s. Price Waterhouse & Co Chartered
Accountants LLP (FRN 304026E/E-300009) (PWC) as the Statutory
Auditors of the Company for a second term of ve (5) consecuve
years from the conclusion of 73
rd
AGM ll the conclusion of 78
th
AGM
and was subsequently approved by the Members at their AGM held
on July 29, 2022.
The Statutory Auditor’s report to the Members on the standalone and
consolidated nancial statement for the year ended March 31, 2023
does not contain any qualicaon, reservaon, adverse remark or any
disclaimer. During the year, there were no instances of fraud reported
by the Statutory Auditors as per Secon 143(12) of the Act.
Cost Records and Cost Auditors
During the year under review, in accordance with Secon 148(1) of
the Act, the Company has maintained the accounts and cost records,
as specied by the Central Government. The Board of Directors had
appointed M/s. Geeyes & Co., (Firm Registraon No.: 000044), as Cost
Auditors of the Company, for conducng the audit of cost records for
the nancial year ended March 31, 2023. The audit is in progress and
the report will be led with the Ministry of Corporate Aairs within
the prescribed period.
The proposal for racaon of remuneraon of the Cost Auditors for
the nancial year 2022-23 is placed before the Members for racaon
/ approval.
26 Ashok Leyland Limited
BOARD’S REPORT
Secretarial Auditor
Pursuant to the provisions of Secon 204 of the Act, read with Rule
9 of the Companies (Appointment and Remuneraon of Managerial
Personnel) Rules, 2014, the Board, at its meeng held on November 10,
2022 approved the appointment of Ms. B. Chandra (ACS No.: 20879,
CP No. 7859), Company Secretary in Pracce, Chennai to conduct the
Secretarial Audit of the Company for the nancial year ended March
31, 2023. The Company has received consent from Ms. B. Chandra to
act as the Secretarial Auditor of the Company.
The Secretarial Audit report for the nancial year ended March 31,
2023 is aached as Annexure H to this Report. The Secretarial Audit
report does not contain any qualicaon, reservaon, adverse remark
or any disclaimer.
Pursuant to Regulaon 24(A) of SEBI Lisng Regulaons, the Company
has obtained annual secretarial compliance report from Ms. B.
Chandra, Company Secretary in Pracce, Chennai and the same will
be submied to the Stock Exchanges within the prescribed me. The
Secretarial Compliance Report also does not contain any qualicaon,
reservaon, adverse remark or any disclaimer.
HLFL, a material unlisted subsidiary of the Company has obtained
Secretarial Audit Report from a Pracsing Company Secretary and
it does not have any qualicaon or adverse remark. The report is
aached as Annexure I.
SECRETARIAL STANDARDS
The Board conrms compliance of the provisions of the Secretarial
Standards noed by the Instute of Company Secretaries of India
(ICSI).
ANNUAL RETURN
Pursuant to the provisions of Secon 92(3) read with secon 134(3) of
the Act, the Annual Return as at March 31, 2023 is available on the
Company’s website at hps://www.ashokleyland.com/in/en/investors/
investor-informaon/performance-reports
OTHER LAWS
As per the requirement of the Sexual Harassment of Women at
Workplace (Prevenon, Prohibion and Redressal) Act, 2013 and
Rules made thereunder, your Company has constuted an Internal
Complaints Commiee to consider and resolve all sexual harassment
complaints. Your Company has framed a policy in this regard to ensure
a free and fair enquiry process on complaints received from the women
employee about Sexual Harassment, also ensuring complete anonymity
and condenality of informaon. During the year under review, there
were 2 complaints received / led pursuant to the provisions of the
Sexual Harassment of Women at Workplace (Prevenon, Prohibion
and Redressal) Act, 2013 and were subsequently disposed of, aer
following the due process as required under the policy / Act.
DISCLOSURE UNDER FOREIGN EXCHANGE MANAGEMENT ACT, 1999
With regard to the downstream investments in Indian Subsidiaries, the
Company is in compliance with applicable Rules and Regulaons of
Foreign Exchange Management.
BOARD MEETINGS HELD DURING THE YEAR
During the year, seven meengs of the Board of Directors were held.
The details of the meengs are furnished in the Corporate Governance
Report which is aached as Annexure C to this Report.
REMUNERATION POLICY
The objecve of the Remuneraon Policy is to aract, movate and
retain competent individuals that the Company needs, to achieve its
strategic and operaonal objecves, whilst recognising the societal
context around remuneraon and recognizing the interests of
Company’s stakeholders.
The Remuneraon Policy provides a framework for remuneraon
of Directors, Key Managerial Personnel, Senior Execuves, other
employees and workmen.
The Company’s policy on directors’ appointment and remuneraon
and other maers provided in Secon 178(3) of the Act is available in
the website at hps://www.ashokleyland.com/backend/in/wp-content/
uploads/sites/2/2021/07/Remuneraon-Policy-1.pdf#toolbar=0
PARTICULARS OF EMPLOYEES
Disclosure pertaining to the remuneraon and other details as required
under Secon 197(12) of the Act and the Rules framed thereunder is
enclosed as Annexure B to the Board’s Report.
ASHOK LEYLAND EMPLOYEE STOCK OPTION SCHEMES
During the year under review, the Nominaon and Remuneraon
Commiee has not granted any opons to the employees of the
Company under the Ashok Leyland Limited Employee Stock Opon
Plan 2016 and Ashok Leyland Limited Employee Stock Opon Plan
2018. Both these Schemes are in compliance with the Securies and
Exchange Board of India (Share Based Employee Benets and Sweat
Equity) Regulaons, 2021. Disclosure with respect to AL ESOP 2016
and AL ESOP 2018 of the Company is available in the website at
hps://www.ashokleyland.com/in/en/investors/investor-informaon/
performance-reports
PERFORMANCE EVALUATION OF THE BOARD, ITS COMMITTEES AND
DIRECTORS
Pursuant to the provisions of the Act and Regulaon 17(10) of the SEBI
Lisng Regulaons, the Board of Directors has carried out performance
evaluaon of its own performance, the Directors individually as well
as the evaluaon of the working of its Commiees. The manner in
which the evaluaon has been carried out has been explained in the
Corporate Governance Report aached as Annexure C to this report.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER
SECTION 186 OF THE ACT
The parculars of loans, guarantees and investments under Secon
186 of the Act, read with the Companies (Meengs of Board and its
Powers) Rules, 2014, for the nancial year 2022-23 are given in Note
No. 3.8 of the Notes to the nancial statements.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED
PARTIES
In compliance with the Act and the SEBI Lisng Regulaons, the
Company has formulated a Policy on Materiality of Related Party
Transacons and on dealing with Related Party Transacons (RPTs) as
approved by the Board which is available on the Company’s website
and can be accessed at hps://www.ashokleyland.com/backend/in/wp-
content/uploads/sites/2/2022/05/RPT-policy-AL.pdf#toolbar=0
All contracts / arrangements / transacons entered by the Company
during the nancial year with related pares were in ordinary course
of business and on an arm’s length basis and were placed and
approved by the Audit Commiee. During the nancial year 2022-
Annual Report 2022-23 27
BOARD’S REPORT
23, the Company had not entered into any contract / arrangement /
transacon with related pares which could be considered material in
accordance with the provisions of the Act. Hence, the disclosure of
related party transacons in Form AOC-2 is not applicable.
During the nancial year 2022-23, there were no materially signicant
transacons with the related pares, which were in conict with the
interests of the Company and that require an approval of the Members
in terms of the SEBI Lisng Regulaons. Suitable disclosures as required
under IND AS 24 have been made in Note No. 3.8 of the Notes to the
nancial statements.
During the year ended March 31, 2023, the approval of the Members
was obtained for the material RPTs (under SEBI Lisng Regulaons)
to be entered into with Switch Mobility Automove Limited for the
FY 2022-23 and with TVS Mobility Private Limited for the FY 2022-23
and FY 2023-24.
The proposals with respect to Material RPTs (under SEBI Lisng
Regulaons) with Switch Mobility Automove Limited for the FY 2023-
24 and with TVS Mobility Private Limited for the FY 2024-25 is placed
before the Members at the forthcoming AGM for approval.
CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES
The Company’s CSR policy is available on the website of the Company
at hps://www.ashokleyland.com/backend/in/wp-content/uploads/
sites/2/2021/07/CSR-Policy.pdf#toolbar=0. The composion of the
CSR Commiee is disclosed in the Corporate Governance Report. The
iniaves undertaken by the Company on CSR acvies during the year
are set out in Annexure J of this report. During the year under review,
the Company spent ` 15.16 Crores on CSR acvies which was over
and above over the requirement under the Act.
Further, the Board has taken on record the cercate from the head
of Financial Management that CSR spends of the Company for nancial
year 2022-23 have been ulized for the purpose and in the manner
approved by the Board of Directors of the Company.
COMMITTEES
As at March 31, 2023, the Company has Audit Commiee, Nominaon
and Remuneraon Commiee, Stakeholders Relaonship Commiee,
Risk Management Commiee, Environmental, Social and Governance
Commiee, Corporate Social Responsibility Commiee, Technology and
Investment Commiee, Shares Commiee and Fund-Raising Commiee.
Details of the composion of the Board and its Commiees are
provided in the Corporate Governance Report aached as Annexure
C to this Report.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
Pursuant to the provisions of Secon 177(9) of the Act, read with Rule
7 of the Companies (Meengs of Board and its Powers) Rules, 2014
and Regulaon 22 of the SEBI Lisng Regulaons and in accordance
with the requirements of SEBI (Prohibion of Insider Trading)
Regulaons, 2015, the Board of Directors had approved the Policy on
Vigil Mechanism / Whistle Blower and the same is available on the
Company’s website at hps://www.ashokleyland.com/backend/in/wp-
content/uploads/sites/2/2023/05/Whistle-Blower-Policy.pdf#toolbar=0
This Policy inter-alia provides a direct access to the Chairman of the
Audit Commiee. Your Company hereby arms that no Director/
employee has been denied access to the Chairman of the Audit
Commiee. Brief details about the policy are provided in the Corporate
Governance Report aached as Annexure C to this Report.
DEPOSITS
Your Company has not accepted any deposit within the meaning of
provisions of Chapter V of the Act, read with the Companies (Acceptance
of Deposits) Rules, 2014 for the year ended March 31, 2023.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE
REGULATORS OR COURTS OR TRIBUNALS
There are no signicant and material orders passed by the Regulators
or Courts or Tribunals which would impact the going concern status of
the Company and its future operaons.
OTHER CONFIRMATIONS
There is no applicaon/proceeding pending under the Insolvency and
Bankruptcy Code, 2016 during the year under review. Further, there
are no instances of one-me selement with any Bank or Financial
Instuons.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has designed a proper and adequate internal control
system to ensure the following viz. a) adherence to Company’s policies,
b) safeguarding of assets, and c) that transacons are accurate,
complete and properly authorized prior to execuon. Details are
provided in Management Discussion and Analysis Report in Annexure F
to this report.
RISK MANAGEMENT
Your Company has established a robust Enterprise Risk Management
(ERM) framework embodying the principles of COSO ERM framework
2017 and ISO 31000 standard that fosters a sound risk management
culture to facilitate informed decision making.
The ERM process is overseen by the Risk Management Commiee
of the Board, which is responsible to ensure that the Company has
an appropriate and eecve framework for managing and reporng
signicant enterprise risks.
The Risk Management process is currently handled by internal
team comprising of key members of Senior Leadership and core
Business vercal heads who are responsible for the risk management
process including risk idencaon, impact assessment, eecve
implementaon of risk migaon plans, and risk reporng.
The details of risk management as pracsed by the Company are
provided as a part of the Management Discussion and Analysis Report
which is aached as Annexure F to this report.
RESEARCH AND DEVELOPMENT, CONSERVATION OF ENERGY,
TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND
OUTGO
Your Company connues to focus on Research and Development
acvies with specic reference to emission conformance, fuel
eciency, vehicular performance, innovaon, futurisc technologies
and enhancement of safety, aesthecs and ride comfort. Expenditure
incurred by way of capital and revenue on these acvies is shown
separately.
Informaon as required under Secon 134(3)(m) of the Act read
with Rule 8(3) of the Companies (Accounts) Rules, 2014, relang to
Conservaon of Energy, Technology Absorpon, Foreign Exchange
Earnings and Outgo are furnished in Annexure A to this Report.
28 Ashok Leyland Limited
BOARD’S REPORT
ACKNOWLEDGEMENT
Your Board takes this opportunity to thank the Company’s employees
for their dedicated service and rm commitment to pursuing the goals
and Vision of the Company. Your Board also wishes to express its
appreciaon for the connued support of the Government of India,
Governments of various States in India, bankers, nancial instuons,
customers, dealers and suppliers and also, the valuable assistance and
advice received from the joint venture partners, Hinduja Automove
Limited, the Hinduja Group and the Members. We look forward to the
connued support of all the partners in our progress.
For and on behalf of the Board of Directors
Chennai Dheeraj G Hinduja
23 May 2023 Execuve Chairman
Annual Report 2022-23 29
ANNEXURE A TO THE BOARD’S REPORT
PARTICULARS OF CONSERVATION OF ENERGY,
TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
A. CONSERVATION OF ENERGY
a) Conservaon of Electrical Power:
● As a part of connuous contribuon/eort towards
sustainable operaons, the Company has taken
specic iniaves in energy conservaon, usage
of alternate/renewable resources, green energy,
opmizing power consumpon, etc.
● During the year, about 12.60 million electrical Units
have been saved leading to signicant savings in
energy cost by about ` 10.70 Crores. This was
achieved through high degree of awareness, Energy
audits, Power quality audits and brainstorming. This
is part of the Company’s Mission Gemba iniave.
● The usage of wind energy which was around 20% of
the total power consumpon was at 65.03 million
Units. Similarly, the usage of solar energy was 37%
of the total consumpon at 118.33 million units this
year. Your Company’s Green Energy iniave realized
signicant operang cost savings to the tune of
` 36.54 Crores. While also making a very impressive
reducon in emissions by 1,30,186 t CO
2
e.
● Use of Indian Energy exchange (IEX) power through
online bidding has resulted in savings of ` 6.10
Crores by purchasing 48.77 million units which is
15% of total power consumpon.
● All manufacturing plants have opmized and
maintained towards unity Power factor.
● Your Company has invested ` 2.45 Crores towards
Energy Conservaon iniaves and has saved 12.60
million kwh during FY 2022-23 through energy saving
projects, viz.,
i. Maximum demand reducon to 8900 kVA from
10700 kVA at Ennore and to 3300 kVA from
4800 kVA at Bhandara;
ii. Capacity improvements across all plants for
reducing the per component consumpon;
iii. Replacement of old AC chillers with energy
ecient chiller units;
iv. Technology upgradaon – replacement of
convenonal ceiling fans with BLDC (brushless
DC motor) fans;
v. Grid based operaon of compressed air
distribuon;
vi. Power opmizer and Demand controller
introduced to control the furnace power at
ALFD, Ennore;
vii. Interlocking of cooling tower fan with the
temperature by suitable circuit modicaons;
viii. Incorporaon of harmonic lters panel for
compressors and variable frequency drives for
conveyors;
ix. Reducon of liquid metal power to 630 units /
MT from 670 units / MT;
x. Conversion of pneumac operated hoists with
electric hoists;
xi. Introducon of energy ecient screw
compressor for the high-pressure requirement
of nut runners and eliminaon of air pressure
boosters;
xii. Producvity improvement in Chassis line 1 by
13% resulted in lesser energy per vehicle (4%
reducon);
xiii. Capacity enhancement at paint shop by 60%
resulted in lesser energy consumpon per cab
(10% reducon) since paint shop consumpon
is xed in nature;
xiv. Introducon of high energy ecient motors
with less rang against the high-powered
motors;
xv. Rebuilding of rotary hearth furnace to
accommodate bigger parts processing;
xvi. Capacity improvement in the furnaces at
manufacturing plants and at foundries to
improve the yield;
xvii. Implementaon of producvity improvement
projects i.e. cycle me reducon thru.
modicaons in machine controls and ulizing
advance technology tools;
xviii. Lighng modicaon (LEDcaon) connued at
renovated buildings & oce areas.
With all the connuous eorts and endeavour on energy
conservaon, our Company is moving towards carbon
neutral and becoming a “Cleaner & Greener” organizaon.
b) Towards wood-free Plant:
Usage of wood has been signicantly reduced across Plants
from 11.83 kg/HECU in FY 2021-22 to 9.91 kg/HECU in FY
2022-23 (16% reducon) at vehicle manufacturing plants
and 1.19 kg/MT in FY 2021-22 to 0.77 kg/MT in FY 2022-23
(36% reducon) at foundry division enabled by reusable,
recycled Steel Pallets.
c) Enhancing the greenery towards carbon neutrality:
Intense green drive to create more green spaces, emphasis
has been to plant more trees in and around manufacturing
units. We have created cumulave 29 mullayer dense
forests using Miyawaki Method – a Japanese way. About
57,472 trees were planted in 19,036 Sqm (20 locaons) in a
phased manner so far in FY 2022-23. Total tree plantaons
inside and outside plants in FY 2022-23 is 37,479 Nos.
d) Water Conservaon:
● Ashok Leyland is a ‘Water Posive’ Company cered
by M/s DNV GL.
● Ground water Consumpon has been minimized
across all manufacturing units by implemenng
Rainwater Harvesng and other water eciency
improvements.
30 Ashok Leyland Limited
● Around 65% of the fresh water consumed is
recovered through Sewage/Euent Treatment/Zero
Liquid Discharge. Plants put the treated water into
use both for inland gardening as well as process
applicaons.
● Facility created near buildings with ltering systems
to capture roof top rain water and pumped to the
overhead tank for use.
e) Solar Energy
With cumulave 10.14 MW roof top solar power across
AL units and 75 MWp solar park at Sivagangai District, in
Tamil Nadu through Hinduja Renewable Private Limited,
118 million units were generated for the FY 2022-23 which
amounts to 37% of total power consumpon including
northern plants. This will ensure abatement of 83,780
tonnes of carbon emissions.
With these, there is an overall reducon in the cost of
producon and signicant reducon in CO2 emissions. Your
Company stands at 67% of renewable energy in Tamil Nadu
and 57% throughout India.
Further it is proposed during FY24, to increase the
renewable energy share by expansion of solar park
(+12.4 MWp), and enhancing the roof top solar capacity
(+18.25 MWp) by which the Company will stand at 84%
of renewable energy in Tamil Nadu and 73% throughout
India.
Awards
● AL won 13 presgious CII EHS Excellence awards (9
maturity awards and 4 special category awards). Plant wise
details provided below:
– Pantnagar (sectoral topper), Hosur 2, Foundry
Sriperumbudur – Gold Award
– Hosur 1, Hosur 3, Ennore, Bhandara – Silver Award
– Alwar, Foundry Ennore – Bronze Award
● Pantnagar: Special category award for air quality and
environment restoraon in CII-SR EHS Excellence Award
2022.
● Alwar: Special category award for Safe Employees, Safe
Communies in CII-SR EHS Excellence Award 2022.
● Ennore: Special category award for Water management in
CII-SR EHS Excellence Award 2022.
● Hosur 2 bagged the “Environmental Excellence Award”
from CII-ITC sustainability awards.
● Foundry Sriperumbudur and Pantnagar plant bagged the
SEEM – Gold Naonal Energy Award.
● Bhandara won “First Runner up award” in State level “CII
Maharashtra energy conservaon award 2022” compeon
organized by CII Maharashtra under large scale engineering
industry.
● Pantnagar has won the CII 23
rd
Naonal Energy award for
best energy ecient Organizaon.
B. TECHNOLOGY ABSORPTION
No technology was imported by the Company during the last
three years.
C. RESEARCH AND DEVELOPMENT
1. Specic areas in which R&D was carried out by the
Company.
– Engines and Aggregates
Development of engines for alternate fuels
other than Diesel.
Development of components for Electric
Powertrain.
OBD2 emission for all models SCV, LCV, ICV &
MHCV.
– Vehicles
Development of CNG & LNG variants on
Modular AVTR Plaorm.
New variants of M&HCV trucks in modular
plaorm.
Development of New Bus Variants for Inter-City
applicaon.
2. Benets derived
CNG variants with complete local aggregates, helped
reduce the diesel consumpon & thereby reduce
carbon footprint with use of CNG.
New products launched in SCV, LCV, ICV & M&HCV
Plaorms leading to beer TCO for customers.
Alternate fuel vehicles showcased in Auto Expo 2023
– CNG, LNG, H2 ICE, EV, FCEV – Leading the path
towards green economy.
3. Future plan of acon
CEV V development for Industrial engines.
Modular plaorm for New Energy & export markets.
SCV development for export markets.
Development of Advanced Driver Assist Systems.
4. Expenditure on Research and Development (R&D)
(` in Crores)
Expenditure on R&D 2022-23 2021-22
Capital 30.08 9.74
Revenue (excluding depreciaon) 410.44 377.69
Less: Amount received by R&D
facilies
(10.86) (8.52)
Total 429.66 378.91
Total R&D expenditure as a % of
total turnover
1.19 1.75
D. FOREIGN EXCHANGE EARNINGS AND OUTGO
Earnings in foreign currency and expenditure incurred in foreign
currency amounts to ` 1,792.19 Crores and ` 210.44 Crores
respecvely. The Company connues its eorts to improve its
earnings from exports.
ANNEXURE A TO THE BOARD’S REPORT
PARTICULARS OF CONSERVATION OF ENERGY,
TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
Annual Report 2022-23 31
The informaon required under Secon 197 of the Act, read with Rule
5(1) of the Companies (Appointment and Remuneraon of Managerial
Personnel) Rules, 2014 are given below:
a. The rao of the remuneraon of each director to the median
remuneraon of the employees of the Company for the nancial
year and percentage increase of each Director, MD & CEO, WTD
& CFO and Company Secretary in the nancial year:
S.
No.
Name of the Director/
KMP
Rao to
median
remuneraon
% increase in
remuneraon
in the
nancial year
1 Mr. Dheeraj G Hinduja 162.45 NA@
2 Prof. Dr. Andreas H
Biagosch
6.44 60.63
3 Dr. Andrew C Palmer* NA NA
4 Dr. C Bhaktavatsala Rao 7.45 44.66
5 Mr. Jean Brunol 6.86 46.81
6 Mr. Jose Maria Alapont 7.68 48.21
7 Ms. Manisha Girotra 6.14 62.42
8 Mr. Sanjay K Asher 7.65 62.45
9 Mr. Saugata Gupta 6.95 54.37
10 Mr. Shom Hinduja 4.55 NA
11 Mr. Gopal Mahadevan 127.01 145.56
12 Mr. Shenu Agarwal
#
NA NA
13 Mr. N. Ramanathan 20.30 46.89
@Not applicable, since Mr. Dheeraj G Hinduja was appointed as
the Execuve Chairman from November 26, 2021.
* Dr. Andrew C Palmer had resigned as Director during FY 2022-
23 w.e.f. November 03, 2022
# Not applicable since Mr. Shenu Agarwal was appointed as MD
& CEO during FY 2022-23 w.e.f. December 08, 2022.
b. The median remuneraon for the year 2022-23 is ` 11,08,046/.
c. The Percentage increase/(decrease) in the median remuneraon
of the employees in the nancial year is 26.41%
d. The number of permanent employees on the rolls of Company:
9603
e. Average percenle increase already made in the salaries of
employees other than the managerial personnel in the last
nancial year and its comparison with the percenle increase
in the managerial remuneraon and juscaon thereof and
point out if there are any exceponal circumstances for increase
in the managerial remuneraon:
Increase in remuneraon is based on remuneraon policy of the
Company.
f. Armaon that the remuneraon is as per the remuneraon
policy of the Company:
The Company arms that the remuneraon is as per the
remuneraon policy of the Company.
g. Mr. Dheeraj G Hinduja, as the Co-Chairman of Hinduja Automove
Limited (Holding Company) was in receipt of remuneraon on
a monthly basis and the same for the period April 1, 2022 to
March 31, 2023 was £1,40,000.
Mr. Dheeraj G Hinduja, Execuve Chairman was in receipt of
Commission amounng to ₹ 64.35 lakhs for the FY 2022- 23 from
Hinduja Leyland Finance Limited, a subsidiary of the Company.
h. Mr. Gopal Mahadevan, Whole-me Director and Chief
Financial Ocer was in receipt of Commission amounng to
₹ 20.67 lakhs for FY 2022-23 from Hinduja Leyland Finance
Limited, a subsidiary of the Company.
i. The statement containing top ten employees in terms of
remuneraon drawn and parculars of employees as required
under Secon 197(12) of the Act, read with Rule 5(2) of the
Companies (Appointment and Remuneraon of Managerial
Personnel) Rules, 2014, is provided in a separate annexure
forming part of this report. Further, the report and the accounts
are being sent to the Members excluding the aforesaid annexure.
In terms of Secon 136 of the Act, the said annexure is open for
inspecon. Any shareholder interested in obtaining a copy of the
same may write to the Company Secretary and the same will be
provided free of cost to the shareholder.
ANNEXURE B TO THE BOARD’S REPORT
PARTICULARS OF EMPLOYEES
32 Ashok Leyland Limited
Ashok Leyland’s Philosophy on Code of Governance
a. Your Company considers sound governance pracces are crucial
for its smooth and ecient operaons as well as its ability to
aract investments, balancing the interests of all its stakeholders
and providing shareholder value. This has also helped your
Company remaining relevant for over decades. Your Company
belongs to a legacy where the visionary founders of the Group
laid the stone for good governance through the philosophies
of ‘Work to give’ and ‘Word is bond’ from the founders of the
Hinduja Group. ‘Work to Give’ refers to the duty to work diligently
and to ensure that one gives something back to the stakeholder
around. ‘Word is bond’ refers to the duty of one to be true to his/
her words, enabling one to build trust and condence amongst
stakeholders at large, thereby creang sustainable relaonships
for life. Thus, the standards of governance are guided by the
following principles:
● Adhering to governance standards beyond the leer of law.
● Clear and ethical strategic direcon and sound business
decisions.
● The eecve exercising of ownership.
● Transparent and professional decision making and
disclosures.
● Excellence in corporate governance by abiding the
guidelines and connuous assessment of Board processes
and the management systems for constant improvisaon.
● Greater aenon is paid to the protecon of minority
shareholders rights.
b. Your Company recognises the rights of all the stakeholders
and encourages co-operaon between the Company and the
stakeholders to enable parcipaon in the corporate governance
process.
c. Your Company ensures adequate, mely and accurate disclosure
of all material maers including the nancial situaon,
performance, ownership and governance of the Company to the
stock exchanges and the investors. Informaon is prepared and
disclosed in accordance with the prescribed standards and is
disseminated in a mely manner.
Board of Directors
i. As on March 31, 2023, the Board comprised of eleven Directors.
Of the eleven directors, eight (72.73%) are Non-Execuve
Directors and six (54.55%) are Independent Directors including
a Woman Director. Mr. Dheeraj G Hinduja is the Execuve
Chairman. The composion of the Board is in conformity with
Regulaon 17 of the SEBI Lisng Regulaons and Secon 149 of
the Companies Act, 2013 (“Act”), read with the relevant rules
made thereunder.
ii. The number of Directorships, Commiee memberships/
chairmanships of all Directors is within the respecve limits
prescribed under the Act and SEBI Lisng Regulaons. Necessary
disclosures regarding Board and Commiee posions in other
public companies as on March 31, 2023 have been made by all
the Directors of the Company.
iii. Your Company has received declaraons from all its Independent
Directors conrming that they meet the criteria of independence
prescribed both under the Companies Act, 2013 and the SEBI
Lisng Regulaons. The Board at its meeng held on May 23,
2023 has taken on record these declaraons received from
the Independent Directors. In the opinion of the Board, the
Independent Directors of the Company full the condions
specied in SEBI Lisng Regulaons and are independent of the
Management.
iv. Every Independent Director at the rst meeng of the Board in
every nancial year, gives declaraons under Secon 149(7) of
the Act and Regulaon 16(1)(b) of the SEBI Lisng Regulaons
that he/she meets the criteria of independence as stated in
these provisions/clauses.
v. The Independent Directors have included their names in the
databank of Independent Directors maintained with the Indian
Instute of Corporate Aairs in terms of Secon 150 of the Act
read with Rule 6 of the Companies (Appointment & Qualicaon
of Directors) Rules, 2014.
vi. Your Company has issued formal leer of appointment to all
Independent Directors and the terms and condions of their
appointment have been hosted on the website of the Company.
vii. The names and categories of the Directors on the Board, their aendance at Board meengs held during the year and the number of
directorships and Commiee chairmanships/memberships held by them as on March 31, 2023 is given herein below:
Name of Director Category Number of Board
meengs during
the year 2022-23
Aendance
at last
AGM held
on July 29,
2022
Number of
Directorships in
other public limited
companies
$
Number of
Directorships
in other
companies
Number of
Commiee posions
held in other public
Companies
&
Held Aended Director Chairman Member Chairman
Mr. Dheeraj G Hinduja,
Execuve Chairman
DIN: 00133410
Promoter, Non-
Independent
Execuve
7 7 Yes 5 4 3 - -
Prof. Dr. Andreas H
Biagosch
DIN: 06570499
Independent
Non-Execuve
7 7 Yes - - 4 - -
Mr. Jean Brunol
DIN: 03044965
Independent
Non-Execuve
7 7 Yes 1 - 1 - -
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
Annual Report 2022-23 33
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
Name of Director Category Number of Board
meengs during
the year 2022-23
Aendance
at last
AGM held
on July 29,
2022
Number of
Directorships in
other public limited
companies
$
Number of
Directorships
in other
companies
Number of
Commiee posions
held in other public
Companies
&
Held Aended Director Chairman Member Chairman
Mr. Jose Maria Alapont
DIN: 07712699
Independent
Non-Execuve
7 7 Yes - - 4 - -
Ms. Manisha Girotra
DIN: 00774574
Independent
Non-Execuve
7 6 Yes - - 3 - -
Mr. Sanjay K Asher
DIN: 00008221
Independent
Non-Execuve
7 7 Yes 8 - 4 8 2
Mr. Saugata Gupta
DIN: 05251806
Independent
Non-Execuve
7 7 Yes 3 - 7 2 1
Dr. C Bhaktavatsala Rao
DIN: 00010175
Non-
Independent
Non-Execuve
7 7 Yes - - 3 - -
Mr. Shom Ashok Hinduja
DIN: 07128441
Non-
Independent
Non-Execuve
7 7 Yes 1 - 3 - -
Mr. Shenu Agarwal*
Managing Director &
Chief Execuve Ocer
DIN: 03485730
Non-
Independent
Execuve
3
@
3 NA - - - - -
Mr. Gopal Mahadevan,
Whole-me Director and
Chief Financial Ocer
DIN: 01746102
Non-
Independent
Execuve
7 6 Yes 5 - 2 5 -
*Appointed as the Managing Director & Chief Execuve Ocer with eect from December 8, 2022.
$
Does not include directorships in Private Limited companies, Secon 8 companies and companies incorporated outside India. This is however
covered under number of Directorships in other companies.
@
Number of meengs held during his tenure as a Director.
&Represents Commiee posions in Audit and Stakeholders Relaonship Commiee.
Note: Dr. Andrew C Palmer, Non-Execuve Director resigned from the Board with eect from November 3, 2022. He has aended 3 Board
meengs between April 1, 2022 to November 3, 2022.
Directorships in other listed enes
Name of the
Director
Name of the listed
enty
Category
Mr. Sanjay K
Asher
Deepak Nitrite Limited Non-Execuve
Independent
Director
IndusInd Bank Limited
Meghmani Finechem
Limited
Sonata Soware Limited
Sudarshan Chemical
Industries Limited
Sun Pharmaceucal
Industries Limited
Mr. Saugata
Gupta
Marico Limited Managing Director
& Chief Execuve
Director
Delhivery Limited Non-Execuve
Independent
Director
Mr. Shom
Ashok Hinduja
Gulf Oil Lubricants
India Limited
Non-Execuve
Non-Independent
Director
Changes in Board composion during the nancial year 2022-23
During the FY 2022-23, the following were the changes in the
Board composion:
Name Nature of Change
Dr. Andrew C Palmer,
Non-Execuve Non-
Independent Director
Resigned as a Non-Execuve Non-
Independent Director with eect
from November 3, 2022.
Mr. Shenu Agarwal
Managing Director &
Chief Execuve Ocer
Appointed as the Managing Director
& Chief Execuve Director with
eect from December 8, 2022. His
appointment was approved by the
shareholders through Postal Ballot
on January 21, 2023.
viii. None of the Directors on the Board is a member of more than
ten Commiees or Chairman of more than ve commiees
across the public companies in which he/she is a director.
ix. None of the Directors on the Board serve as Independent
Directors in more than seven listed enes. None of the Execuve
Directors on the Board serve as an Independent Director in more
than three listed enes.
34 Ashok Leyland Limited
x. None of the Directors/Key Management Personnel of the
Company are related to each other (in terms of the Act).
xi. During the year, seven Board meengs were held and the gap
between two meengs did not exceed one hundred and twenty
days.
xii. The dates on which the said meengs were held are:
May 19, 2022, June 16, 2022, July 29, 2022, November 10, 2022,
December 8, 2022, February 1, 2023 and March 22, 2023. The
necessary quorum was present for all the meengs.
xiii. The Board evaluates the Company’s strategic direcon,
management policies, performance objecves and eecveness
of Corporate Governance pracces.
xiv. During the year 2022-23, informaon as menoned in Part A
of Schedule II of the SEBI Lisng Regulaons, has been placed
before the Board for its consideraon. The Board periodically
reviews the compliance reports of all laws applicable to the
Company.
xv. In compliance with the applicable provisions of the Act and the
Rules made thereunder, the Company facilitates the parcipaon
of the Directors in Board/Commiee meengs through video
conferencing or other audio-visual mode.
xvi. Further, the Board fulls the key funcons as prescribed under
the SEBI Lisng Regulaons.
xvii. Your Company has appointed Independent Directors who are
renowned people having experse/experience in their respecve
eld/profession. None of the Independent Directors are
promoters or related to promoters. They do not have pecuniary
relaonship with the Company and further do not hold two
percent or more of the vong power of the Company.
xviii. The details of Directors seeking re-appointment at the ensuing
AGM is furnished in the Noce convening the AGM.
xix. During the nancial year 2022-23, under AL ESOP 2016 and
2018, the Nominaon and Remuneraon Commiee (“NRC”) has
not granted any opons to any of the eligible employees of the
Company.
xx. As at March 31, 2023, Mr. Gopal Mahadevan, Whole-me
Director and Chief Financial Ocer holds 20,620 shares in the
Company.
Dr. C Bhaktavatsala Rao holds 1,690 shares in the Company as at
March 31, 2023 in individual capacity and 6,550 shares as Karta
of HUF. Other Non-Execuve Directors do not hold any shares in
the Company.
xxi. Your Company has not issued any converble instruments.
xxii. During the year, the Independent Directors of the Company
without the presence of non-independent directors and
management team met on May 19, 2022, June 8, 2022,
November 10, 2022, January 27, 2023 and March 23, 2023. The
Independent Directors inter-alia reviewed the performance of the
non-independent directors, Board as a whole and Chairman of
the Company, on parameters of eecveness and to assess the
quality, quanty and meliness of ow of informaon between
the management and the Board.
Prof. Dr. Andreas H Biagosch, Lead Director of these meengs
presented the views of the Independent Directors on maers
relang to Board processes and views, to the Board.
xxiii. The details of familiarisaon programme done for the nancial
year 2022-23 have been hosted in the website of the Company
under the web link hps://www.ashokleyland.com/in/en/
investors/investor-informaon/familiarizaon-to-directors.
xxiv. The skills/experse/competencies idened by the Board for
the eecve funconing of the Company which are currently
available with the Board and the names of the Directors who
have such skills/experse/competence is as below:
Skills/Experse/Competence Name of the Director
Governance, Global Strategic
Management in Automove
sector
Mr. Dheeraj G Hinduja
Prof. Dr. Andreas H Biagosch
Mr. Jose Maria Alapont
Mr. Jean Brunol
Mr. Shom Ashok Hinduja
Mr. Shenu Agarwal
Financial Management, Risk
management, Regulatory and
Legal
Mr. Dheeraj G Hinduja
Prof. Dr. Andreas H Biagosch
Mr. Jose Maria Alapont
Mr. Sanjay K Asher
Ms. Manisha Girotra
Mr. Gopal Mahadevan
Mr. Shenu Agarwal
Engineering, Technology,
Operaons
Mr. Jose Maria Alapont
Mr. Jean Brunol
Prof. Dr. Andreas H Biagosch
Mr. Shom Ashok Hinduja
Mr. Shenu Agarwal
Investment Appraisal,
Financing, Capital Structures
Mr. Dheeraj G Hinduja
Ms. Manisha Girotra
Mr. Gopal Mahadevan
Mr. Jose Maria Alapont
Mr. Shenu Agarwal
Management and Leadership,
Markeng and Branding,
Mr. Dheeraj G Hinduja
Mr. Jose Maria Alapont
Prof. Dr. Andreas H Biagosch
Mr. Jean Brunol
Mr. Saugata Gupta
Dr. C Bhaktavatsala Rao
Mr. Shom Ashok Hinduja
Mr. Shenu Agarwal
Mr. Gopal Mahadevan
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
Annual Report 2022-23 35
COMMITTEES OF THE BOARD
Audit Commiee
Terms of Reference:
Your Company has constuted a qualied independent Audit Commiee
which acts as a link between the management, external and internal
auditors and the Board of Directors of the Company. The Commiee
is responsible for overseeing the Company’s nancial reporng process
by providing direcon to audit funcon and monitoring the scope and
quality of internal and statutory audits. The Members of the Audit
Commiee are nancially literate and possess accounng or related
nancial management experse.
The brief descripon of the terms of reference of the Commiee is
given below:
Financials
● Review of the quarterly/half-yearly/annual nancial statements
with reference to changes, if any, in accounng policies and
reasons for the same.
● Major accounng entries involving esmates based on exercise
of judgment by management, adjustments, if any, arising out of
audit ndings.
● Compliance with lisng and legal requirements relang to nancial
statements, qualicaons, if any, in the dra audit report.
● Changes, if any, in accounng policies and pracces and reasons
for the same.
● Signicant adjustments made in the nancial statements arising
out of audit ndings.
Internal controls and risk management
● Review of internal audit funcon and discussion on internal audit
reports.
● Review of vigil mechanism.
● Review of adequacy of internal control systems.
● Review of enterprise level risks.
Compliance and other related aspects
● Approval and Disclosure of related party transacons and
subsequent modicaons, if any.
● Scruny of inter-corporate loans and investments.
● Valuaon of undertakings or assets of the Company.
● Uses/applicaon of funds raised through an issue.
● Review and recommendaon of appointment, remuneraon and
terms of appointment of statutory auditors.
● Review of other services rendered by the statutory auditors.
● Review and monitor the auditor’s independence and performance
and eecveness of the audit process.
● Review of the management discussion and analysis of the
nancial condions and results of operaons, signicant related
party transacons, management leers issued by statutory
auditors, internal audit reports.
● Review the adequacy of internal audit funcon, if any, including
the structure of internal audit department, stang and seniority
of the ocial heading the department, reporng structure,
coverage and frequency of internal audit.
● Evaluaon of internal nancial controls and risk management
systems.
● Review the compliances of The SEBI (Prohibion of Insider
Trading) Regulaons, 2015.
● Review the funconing of the Whistle Blower Mechanism.
The policy is available on the Company’s website hps://
www.ashokleyland.com/backend/in/wp-content/uploads/
sites/2/2021/11/WhistleBlower-Policy.pdf#toolbar=0.
The Audit Commiee also considers maers which are specically
referred to it by the Board of Directors, besides considering the
mandatory requirements of Regulaon 18 read with Part C of Schedule
II of SEBI Lisng Regulaons and provisions of Secon 177 of the Act.
Composion:
The composion of the Audit Commiee and the details of meengs
aended by its members are given below:
Name Category Number of meengs
during the nancial
year 2022-23
Held Aended
Mr. Sanjay K Asher,
Chairman
Independent,
Non-Execuve
4 4
Mr. Jean Brunol Independent,
Non-Execuve
4 4
Mr. Jose Maria Alapont Independent,
Non-Execuve
4 4
Dr. C Bhaktavatsala Rao Non-Independent,
Non-Execuve
4 3
Mr. Saugata Gupta Independent,
Non-Execuve
4 4
Meengs
During the year, four Audit Commiee meengs were held and the gap
between two meengs did not exceed one hundred and twenty days.
The dates on which the said meengs were held are as follows: May
18, 2022, July 28, 2022, November 09, 2022 and January 31, 2023. The
necessary quorum was present at all the meengs.
The Commiee complies with the SEBI Lisng Regulaons relang to
composion, independence of its members, nancial experse and the
audit commiee charter.
Mr. Sanjay K Asher, Chairman of the Audit Commiee was present at
the AGM held on July 29, 2022.
The Whole-me Director and Chief Financial Ocer and Head - Internal
Audit and Risk Management aend meengs of the Audit Commiee,
as invitees.
The Statutory Auditors/ Cost Auditor aend the Audit Commiee
Meengs for maers relang to discussion on nancials results/
respecve audit reports.
Mr. N Ramanathan, Company Secretary is the Secretary to the
Commiee.
Your Company is governed by a charter adopted by the Commiee
pursuant to the regulatory requirements and the Commiee reviews
the mandatory informaon periodically as required.
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
36 Ashok Leyland Limited
Nominaon and Remuneraon Commiee
Your Company has a Nominaon and Remuneraon Commiee
(“NRC”) constuted pursuant to the provisions of Secon 178 of the
Act and Regulaon 19 of the SEBI Lisng Regulaons. The NRC acts as
the Compensaon Commiee for administraon of AL ESOP 2016 and
AL ESOP 2018 as per the SEBI (Share Based Employee Benets and
Sweat Equity) Regulaons, 2021.
A brief descripon of the terms of reference of the Commiee is given
below:
● Formulate Remuneraon Policy and a Policy on Board Diversity.
● Formulate criteria for evaluaon of Directors and the Board.
● To ensure that the Remuneraon Policy shall also include the
criteria for determining qualicaons, posive aributes and
independence of a Director and recommend to the Board a policy,
relang to the remuneraon for the Directors, Key Managerial
Personnel and other employees and recommend remuneraon
to the Board.
● Idenfy persons who are qualied to become Directors and who
may be appointed in Senior Management in accordance with the
criteria laid down, recommend to the Board their appointment
and removal and shall carry out evaluaon of every Director’s
performance. Evaluate the balance of skills, knowledge and
experience on the Board and consider the appointment of
Independent Directors on the basis of such evaluaon.
● To ensure that the level and composion of remuneraon is
reasonable and sucient to aract, retain and movate Directors
of the quality required to run the Company successfully;
relaonship of remuneraon to performance is clear and meets
appropriate performance benchmarks.
● Remuneraon to Directors, Key Managerial Personnel and Senior
Management involves a balance between xed and incenve
pay reecng short- and long-term performance objecves
appropriate to the working of the Company and its goals.
● Recommend to the Board, all remuneraon, in whatever form,
payable to Senior Management.
Composion
The composion of the NRC and the details of meengs aended by
its members are given below:
Name Category Number of meengs
during the nancial
year 2022-23
Held Aended
Ms. Manisha Girotra,
Chairperson
Independent,
Non-Execuve
5 5
Mr. Jose Maria Alapont Independent,
Non-Execuve
5 5
Mr. Saugata Gupta Independent,
Non-Execuve
5 5
Meengs
During the year, ve NRC meengs were held. The dates on which the
said meengs were held are as follows:
April 06, 2022, May 18, 2022, November 10, 2022, December 06, 2022
and February 01, 2023
The necessary quorum was present for all the meengs.
The Chairperson of the NRC was present at the last AGM held on July
29, 2022.
Performance evaluaon criteria for Directors
The NRC has laid down the criteria for performance evaluaon of all
the Directors of the Company. The performance evaluaon is done
by the enre Board of Directors, except the Director concerned being
evaluated. The criteria for performance evaluaon are as follows:
(a) Role and Accountability
● Understanding the nature and role of Independent
Directors’ posion.
● Understanding of risks associated with the business.
● Applicaon of knowledge for rendering advice to
management for resoluon of business issues.
● Oer construcve challenge to management strategies and
proposals.
● Acve engagement with the management and aenveness
to progress of decisions taken.
(b) Objecvity
● Non-parsan appraisal of issues.
● Own recommendaons given professionally without
tending to majority or popular views.
(c) Leadership and Iniave
● Heading Board Sub-commiees.
● Driving any funcon or idened iniave based on
domain knowledge and experience.
(d) Personal Aributes
● Commitment to role and duciary responsibilies as a
Board member.
● Aendance and acve parcipaon.
● Proacve, strategic and lateral thinking.
During the year, the Nominaon and Remuneraon Commiee/
Board conducted an evaluaon of its own performance, Individual
Directors as well as the working of the Commiees as per the
Board evaluaon framework adopted by it.
(e) Remuneraon Policy
The objecve of the remuneraon policy is to aract, movate
and retain qualied and expert individuals that the Company
needs in order to achieve its strategic and operaonal objecves,
whilst acknowledging the societal context around remuneraon
and recognising the interest of Company’s stakeholders. The
policy is hosted at the website of the Company at hps://
www.ashokleyland.com/backend/in/wp-content/uploads/
sites/2/2021/07/Remuneraon-Policy-1.pdf#toolbar=0.
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
Annual Report 2022-23 37
Remuneraon of Directors
(i) Criteria for making payments to Non-Execuve Directors
The Non-Execuve Directors of the Company are paid remuneraon by way of sing fee and prot related commission based on the criteria
laid down by the NRC and the Board which may include:
Performance of the Company.
Members’ aendance, posion held in the Commiee(s); and
Time spent by each Member.
Details of the remuneraon for Non-Execuve Directors for the year ended March 31, 2023
Sl.
No.
Name of the Director Sing fees
(`)
Commission
(`)
Total
(`)
1. Prof. Dr. Andreas H Biagosch 10,00,000 61,37,000 71,37,000
2. Dr. Andrew C Palmer* 3,00,000 - 3,00,000
3. Mr. Jean Brunol 14,00,000 61,99,000 75,99,000
4. Mr. Jose Maria Alapont 17,00,000 68,13,000 85,13,000
5. Ms. Manisha Girotra 10,80,000 57,22,000 68,02,000
6. Mr. Sanjay K Asher 14,90,000 69,85,000 84,75,000
7. Mr. Saugata Gupta 15,20,000 61,80,000 77,00,000
8. Dr. C Bhaktavatsala Rao 11,20,000 71,37,000 82,57,000
9. Mr. Shom Ashok Hinduja 10,00,000 40,37,000 50,37,000
Total 1,06,10,000 4,92,10,000 5,98,20,000
*Dr. Andrew C Palmer resigned from the Board with eect from November 3, 2022.
None of the Non-Execuve Directors have had any pecuniary relaonship or transacon with the Company other than those relang to
remuneraon in their capacity as Directors and corporate acon entlements in their capacity as Members of the Company.
(ii) Details of Remuneraon for the Execuve Directors for the year ended March 31, 2023
(Amount in `)
Sl.
No.
Parculars of Remuneraon Mr. Dheeraj G Hinduja,
Execuve Chairman
Mr. Shenu Agarwal,
Managing Director and
Chief Execuve Ocer
(from December 8, 2022)
Mr. Gopal Mahadevan,
Whole-me Director and
Chief Financial Ocer
1. Gross salary:
(a) Salary as per provisions contained in
Secon 17(1) of the Income-tax Act,
1961
17,03,57,143 1,27,31,772 13,93,68,215
(b) Value of perquisites under Secon 17(2)
of the Income-tax Act, 1961
88,92,852 13,37,733 6,19,790
2. Employee Stock Opon - - -
3. Others - Rerement benets 7,50,000 - 7,50,000
Total 17,99,99,995 1,40,69,505 14,07,38,005
The above gures are on accrual basis.
Employee Stock Opon is treated as perquisite only at the me of exercise of opon under Income Tax Act, 1961. Accordingly, the expense
charged during the vesng period is not considered here.
Services of the Execuve Chairman, MD & CEO and WTD & CFO may be terminated by either party, giving the other party three months’
noce. There is no separate provision for payment of severance pay.
During the year, no Employee Stock Opons were granted under the Ashok Leyland Limited ESOP 2016 and 2018 Schemes.
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
38 Ashok Leyland Limited
Stakeholders’ Relaonship Commiee
Your Company has constuted a Stakeholders’ Relaonship Commiee
(“SRC”) pursuant to the provisions of Secon 178 of the Act and
Regulaon 20 of the SEBI Lisng Regulaons.
Terms of Reference
The SRC considers and resolves the grievances of the security
holders, reviews the measures taken to ensure mely receipt of
dividends/annual reports etc. and eecve exercise of vong rights
by shareholders. The Commiee also reviews the manner and
melines of dealing with complaint leers received from Stock
Exchanges/ SEBI/ Ministry of Corporate Aairs, etc., and the responses
thereto along with the adherence to service standards. Based on the
delegated powers of the Board of Directors, WTD & CFO approves
the share transfers/transmissions on a regular basis and the same is
reported at the next meeng of the Commiee, normally held every
quarter.
The Board of Directors have also constuted a Shares Commiee
to specically approve requests relang to issuance of duplicate
share cercates. Dr. C Bhaktavatsala Rao and Mr. Gopal Mahadevan
are the Members of the Commiee. Mr. Shenu Agarwal was
inducted as a Member of the Shares Commiee with eect from
February 1, 2023.
Composion
The composion of the SRC and the details of meengs aended by its
members are given below:
Name Category Number of meengs
during the nancial
year 2022-23
Held Aended
Mr. Sanjay K Asher,
Chairman
Independent,
Non-Execuve
4 4
Ms. Manisha Girotra Independent,
Non-Execuve
4 4
Mr. Dheeraj G Hinduja Non- Independent,
Execuve
4 3
Mr. N Ramanathan, Company Secretary is the Secretary to the
Commiee and Compliance Ocer appointed for the purpose of
compliance with the requirements of SEBI Lisng Regulaons.
Meengs
During the year, four SRC meengs were held. The dates on which the
said meengs were held are as follows:
May 18, 2022, July 29, 2022, November 10, 2022 and February 01,
2023. The necessary quorum was present for all the meengs.
Details of Complaints/other Correspondences
During the nancial year, 13 complaint leers and 2,060 correspondences were received from investors (13 complaint leers from the Stock
Exchanges/SEBI SCORES).
Subject Maer of Complaints Pending as on
March 31, 2022
Leers Received Leers replied/
completed
Pending as on
March 31, 2023
Non-Receipt of Dividend / Interest - 1 1 -
Transmission of shares - 5 5 -
Refund of shares from IEPF Authority - 1 1 -
Unclaimed Dividend - 1 1 -
Others - 5 5 -
Total - 13 13 -
Subject Maer of Correspondence Pending as on
March 31, 2022
Leers Received Leers replied/
completed
Pending as on
March 31, 2023
Regarding Share Cercate 1 87 87 1
Regarding Dividend/Interest - 19 19 -
Regarding Annual Report - 9 9 -
Issue of Duplicate Share Cercate - 79 77 2
Loss of Share Cercates 5 204 207 2
Revalidaon of Dividend/Interest 2 82 82 2
Issue of Duplicate Dividend/Interest 2 47 49 -
Procedure for Transmission 4 466 458 12
Change of Address/Bank Mandate - 385 385 -
Other Correspondence 1 102 98 5
Unclaimed share cercate - 11 10 1
Unclaimed Dividend 1 348 339 10
Claims regarding refund of Shares/ Dividend from IEPF
authority
1 221 215 7
Total 17 2,060 2,035 42
Shareholder queries shown pending as on March 31, 2023, have been subsequently resolved within the prescribed me limits.
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
Annual Report 2022-23 39
Corporate Social Responsibility Commiee
Your Company has constuted a Corporate Social Responsibility (“CSR”)
Commiee pursuant to the provisions of Secon 135 of the Act read
with Companies (Corporate Social Responsibility) Rules, 2014.
The CSR Commiee has formulated a CSR Policy indicang the
acvies to be undertaken by the Company as specied in Schedule
VII of the Act. The Commiee recommends the amount of expenditure
to be incurred on the acvies menoned in the CSR Policy, the
annual acon plan, categorisaon of projects as one me and ongoing
projects, transfer of funds to the unspent A/c, if any and monitors the
implementaon of the CSR Policy.
The CSR Report as required under the Companies Act, 2013 for the year
ended March 31, 2023 is aached as Annexure J to the Board’s Report.
Composion
The composion of the CSR Commiee and the details of meengs
aended by its members are given below:
Name Category Number of meengs
during the nancial
year 2022-23
Held Aended
Mr. Dheeraj G
Hinduja, Chairman
Execuve 2 2
Ms. Manisha Girotra Independent, Non-
Execuve
2 2
Mr. Sanjay K Asher Independent, Non-
Execuve
2 2
Mr. Shenu Agarwal* Non- Independent,
Execuve
- -
*Appointed as a Member with eect from February 1, 2023.
Mr. N Ramanathan, Company Secretary is the Secretary to the Commiee.
Meengs
The CSR Commiee met two mes during the year. The dates on which
the said meengs were held are as follows:
May 18, 2022 and July 29, 2022. The necessary quorum was present
for all the meengs.
Risk Management Commiee
(i) Your Company has constuted a Risk Management Commiee
(“RMC”) to assist the Board and the Audit Commiee in their
responsibilies of overseeing Company’s risk management policies
and processes (including processes for monitoring and migang
such risks) and the Company’s exposure to unmigated risks.
The terms of reference of the RMC is as follows:
● Formulaon of a detailed risk management policy which
includes a framework for idencaon of internal and
external risks specically faced by the Company, in parcular
including nancial, operaonal, sectoral, sustainability, ESG
related risks, informaon, cyber security risks or any other
risk as may be determined by the Commiee. The policy
also includes measures for risk migaon including systems
and processes for internal control of idened risks and
the Business connuity plan.
● To ensure that appropriate methodology, processes
and systems are in place to monitor and evaluate risks
associated with the business of the Company;
● To monitor and oversee implementaon of the risk
management policy, including evaluang the adequacy of
risk management systems;
● To periodically review the risk management policy, at least
once in two years, including by considering the changing
industry dynamics and evolving complexity;
● To keep the Board informed about the nature and content
of its discussions, recommendaons and acons to be taken.
(ii) The Chairman of the Commiee apprises the Board of the most
signicant risks along with the status of acon taken by the
Management for migang such risks and the eecveness of
the Enterprise Risk Management (ERM) system.
(iii) Details of Risk Management measures undertaken by the
Company have been provided in the Management Discussion and
Analysis Report which is aached to the Board’s Report.
(iv) A Risk Management status report is provided to the Audit
Commiee on a regular basis for its informaon.
Composion
The composion of the RMC and the details of meeng aended by
its members are given below:
Name Category Number of meengs
during the nancial
year 2022-23
Held Aended
Prof. Dr. Andreas H
Biagosch, Chairman
Independent,
Non-Execuve
2 2
Mr. Sanjay K Asher Independent,
Non-Execuve
2 2
Mr. Gopal Mahadevan Non-Independent,
Execuve
2 1
Mr. Shenu Agarwal* Non- Independent,
Execuve
- -
*Appointed as a Member with eect from February 1, 2023.
Mr. N Ramanathan, Company Secretary is the Secretary to the
Commiee.
Meengs
Two RMC meengs were held during the year on April 27, 2022 and
October 18, 2022 and the gap between two meengs did not exceed
one hundred and eighty days. The necessary quorum was present for
the meengs.
Other Commiees
Technology and Investment Commiee
The Board has constuted a Technology and Investment Commiee
(T & IC) to consider maers relang to new investment proposals,
long term strategic goals in the areas of manufacturing and product
strategy, key decisions with regard to product planning and choice of
technology thereof and helps to prepare the Company to be in step
with or be ahead of emerging global product and technology trends.
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
40 Ashok Leyland Limited
Composion
The composion of the T & IC and the details of meengs aended by
its members are given below:
Name
of the
Commiee
Name Category Number of meengs
during the nancial
year 2022-23
Held Aended
Technology
and
Investment
Commiee
Mr. Dheeraj
G Hinduja,
Chairman
Execuve 3 3
Prof. Dr.
Andreas H
Biagosch
Independent,
Non-Execuve
3 3
Dr. Andrew C
Palmer*
Non-
Independent,
Non-Execuve
1 -
Mr. Jean
Brunol
Independent,
Non-Execuve
3 3
Mr. Jose
Maria Alapont
Independent,
Non-Execuve
3 3
Mr. Shom
Ashok Hinduja
Non-
Independent,
Non-Execuve
3 3
*Ceased to be a Member with eect from November 3, 2022 consequent
to his resignaon from the Board.
Mr. N Ramanathan, Company Secretary is the Secretary to the
Commiee.
Meengs
The Technology and Investment Commiee met thrice during the year
on the following dates:
May 12, 2022, November 09, 2022 and January 31, 2023. The necessary
quorum was present for all the meengs.
Environmental, Social and Governance Commiee
The Board has constuted the Environmental, Social and Governance
Commiee (‘ESG Commiee’) to guide and to assist the Board of
the Company in fullling its oversight responsibilies and also make
recommendaons as appropriate, on maers related to enty-wide
ESG iniaves, key focus areas and benchmarked ESG pracces.
The terms of reference of the ESG Commiee is as below:
i. Oversee, review and assess whether the Company’s strategy,
policy and iniaves are in line with the macro developments
happening in the ESG domain.
ii. Integrate the relevant iniaves on maers relang to
Environmental, Health and Safety, Corporate Social Responsibility,
Sustainability and such other public policy maers, acvies, and
proposals related to ESG with the other Board Commiees.
iii. Review material ESG aspects for the Company and oversee the
development and implementaon of targets, standards and
metrics established by the Management to assess and track the
Company’s ESG performance.
iv. Review and approve the Company’s ESG public disclosures and
oversee the Company’s engagement with the stakeholders on
ESG issues as also review stakeholder feedback from the ESG
disclosures.
v. Review monitoring processes for tracking the ESG performance.
vi. Monitor and review stakeholder percepon of the Company
around ESG topics (including ESG rangs by leading agencies)
vii. Review and ensure compliance to regulatory ESG disclosures as
required and amended from me to me (such as BRSR).
Composion
The composion of the ESG Commiee and the details of meengs
aended by its members are given below:
Name Category Number of meengs
during the nancial
year 2022-23
Held Aended
Mr. Jose Maria Alapont
Chairman
Independent,
Non-Execuve
4 4
Dr. C. Bhaktavatsala Rao Non-Independent,
Non-Execuve
4 4
Mr. Jean Brunol Independent,
Non-Execuve
4 4
Mr. Sanjay K. Asher Independent,
Non-Execuve
4 3
Mr. Saugata Gupta Independent,
Non-Execuve
4 4
Mr. Shom Ashok Hinduja Non-Independent,
Non-Execuve
4 4
Mr. Shenu Agarwal was appointed as a Member of ESG Commiee
with eect from May 23, 2023. Mr. N Ramanathan, Company Secretary
is the Secretary to the Commiee.
Meengs
During the year, four ESG Commiee meengs were held. The dates on
which the said meengs were held are as follows:
May 12, 2022, July 28, 2022, November 09, 2022 and January 31, 2023.
The necessary quorum was present for all the meengs.
Fund Raising Commiee
Your Company has in place a Fund-Raising Commiee (FRC), comprising
of Mr. Sanjay K Asher as the Chairman of the Commiee, Mr. Dheeraj G
Hinduja, Dr. C Bhaktavatsala Rao and Mr. Gopal Mahadevan as members
of the Commiee. The Commiee was constuted in connecon with
the issue and allotment of the Non-Converble Debentures. During the
year, no meengs of the FRC were held.
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
Annual Report 2022-23 41
General Body Meengs
i) Details of locaon and me of holding the last three AGMs:
Year Locaon Date and Time Special resoluons passed
73
rd
AGM
2021-22
Video Conferencing (“VC”)/Other
Audio-Visual Means (“OAVM”)
July 29, 2022
and 3.00 p.m.
(i) Racaon of the remuneraon of Mr. Vipin Sondhi,
MD&CEO for the period April 1, 2022 to December 31,
2022 in view of inadequacy of prots;
(ii) Racaon of the remuneraon of Mr. Gopal Mahadevan,
WTD & CFO for the FY 2021-22 in view of inadequacy of
prots;
(iii) Racaon of the remuneraon of Mr. Dheeraj G Hinduja,
Execuve Chairman for the period November 26, 2021 to
March 31, 2022 in view of inadequacy of prots;
(iv) Revision in remuneraon of Mr. Dheeraj G Hinduja,
Execuve Chairman with eect from April 1, 2022;
(v) Enhancement of limits under Secon 186 of the Companies
Act, 2013.
72
nd
AGM
2020-21
Video Conferencing (“VC”)/Other
Audio-Visual Means (“OAVM”)
September 8, 2021
and 3.00 p.m.
(i) Re-appointment of Mr. Jose Maria Alapont as an
Independent Director;
(ii) Racaon of the remuneraon of Mr. Vipin Sondhi,
MD&CEO for the FY 2020-21 in view of inadequacy of
prots;
(iii) Racaon of the remuneraon of Mr. Gopal Mahadevan,
WTD & CFO for the FY 2020-21 in view of inadequacy of
prots;
(iv) Payment of remuneraon to Non-Execuve Non-
Independent Directors for the FY 2020-21 in view of
inadequacy of prots.
71
st
AGM
2019-20
Video Conferencing (“VC”)/Other
Audio-Visual Means (“OAVM”)
September 2, 2020
and 3.00 p.m.
(i) Re-appointment of Ms. Manisha Girotra as an Independent
Director;
(ii) Re-appointment of Dr. Andrew C Palmer as an Independent
Director.
No Extra-Ordinary General Meeng was held during the year 2022-23.
ii. Postal Ballot:
During the year, approval of the shareholders in respect of the
following maers were obtained by way of Ordinary Resoluons
through Postal Ballot.
Nature of business Period Date of
declaraon
Approval of Material Related
Party Transacon(s) with
TVS Mobility Private Limited
for the FY 2022-23.
May 25, 2022
to June 23,
2022
June 24, 2022
Appointment of Mr. Shenu
Agarwal (DIN: 03485730) as
a Director.
Appointment of Mr. Shenu
Agarwal (DIN: 03485730)
as the Managing Director &
Chief Execuve Ocer
December
23, 2022 to
January 21,
2023
January 23,
2023
No special resoluons were passed through Postal Ballot during
the year.
None of the businesses proposed to be transacted at the ensuing
AGM require passing a resoluon through Postal Ballot.
Disclosures
(i) Related Party Transacons
During the FY 2022-23, there were no materially signicant
transacons with the related pares, which were in conict
with the interests of the Company. The transacons entered
into with the related pares during the nancial year were in
the ordinary course of business and at arm’s length basis and
were approved by the Audit Commiee. During the year, the
Company obtained the approval of the shareholders for material
related party transacons with TVS Mobility Private Limited (for
the FY 2022-23 and FY 2023-24) and Switch Mobility Automove
Limited (for the FY 2022-23) in line with Regulaon 23(4) of SEBI
Lisng Regulaons.
(ii) The policy on Related Party Transacons is hosted on the website
of the Company under the web link hps://www.ashokleyland.
com/backend/in/wp-content/uploads/sites/2/2021/01/
PolicyonRelatedPartyTransacons.pdf#toolbar=0.
(iii) Details of non-compliance by the Company, penales, strictures
imposed on the Company by the stock exchanges or SEBI or any
statutory authority, on any maer related to capital markets,
during the last three nancial years 2020-21, 2021-22 and 2022-
23 respecvely: Nil
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
42 Ashok Leyland Limited
(iv) Whistle Blower Policy
Your Company has established a Vigil Mechanism/Whistle Blower
Policy to enable stakeholders (directors and employees) to report
unethical behaviour, actual or suspected fraud or violaon of the
Company’s Code of Conduct. It is armed that during the year
no Director/Employee has been denied access to the Chairman
of the Audit Commiee.
The Whistle Blower Policy has been hosted on the Company’s
website under the web link: hps://www.ashokleyland.com/
backend/in/wp-content/uploads/sites/2/2021/11/Whistle-
Blower-Policy.pdf#toolbar=0.
(v) Your Company has complied with all applicable mandatory
requirements in terms of SEBI Lisng Regulaons. A report on
the compliances on the applicable laws for the Company is
placed before the Board on a quarterly basis for its review.
(vi) The disclosure in relaon to the provisions of the Sexual
Harassment of Women at Workplace (Prevenon, Prohibion and
Redressal) Act, 2013 for the FY 2022-23 is as below:
a) Number of complaints led during the nancial year: 2
b) Number of complaints disposed o during the nancial
year: 2
c) Number of complaints pending as on end of the nancial
year: 0
(vii) Price Waterhouse & Co Chartered Accountants LLP are the
statutory auditors of the Company. The total fees paid/payable
to the statutory auditors and its network rms by the Company
and its subsidiaries for the year ended March 31, 2023 is given
below (excluding reimbursement of expenses):
S.
No.
Nature of Service ` in Crores
1. Statutory Audit Fees 1.90
2. Other services including cercaon and
auding group reporng pack
1.09
Total 2.99
(viii) Dividend Distribuon Policy
Your Company has formulated the policy on dividend distribuon
with a view to specify the external and internal factors including
nancial parameters that shall be considered while declaring
dividend and the circumstances under which the shareholders
of the Company may or may not expect dividend and how the
retained earnings be ulised etc. The Policy imbibing the above
parameters as per the provisions of SEBI Lisng Regulaons
has been hosted in the Company’s website under the web link:
hps://www.ashokleyland.com/backend/in/wp-content/uploads/
sites/2/2021/01/Dividend_Distribuon_Policy.pdf#toolbar=0.
(ix) Your Company has fullled the following non-mandatory
requirements:
a. The Auditors’ Report on statutory nancial statements of
the Company containing the Audit opinion is unmodied.
b. The Internal Auditors of the Company make presentaons
to the Audit Commiee on their reports on a regular basis.
(x) Reconciliaon of Share Capital Audit
Your Company has engaged a qualied pracsing Company
secretary to carry out share capital audit to reconcile the
total admied equity share capital with the Naonal Securies
Depository Limited (NSDL) and the Central Depository Services
(India) Limited (CDSL) and the total issued and listed equity share
capital of the Company. The audit report conrms that the total
issued/paid-up capital is in agreement with the total number of
shares in physical form and the total number of dematerialised
shares held with NSDL and CDSL.
(xi) Disclosure of Accounng Treatment
Your Company has not adopted any alternave accounng
treatment prescribed dierently from the Ind AS.
(xii) Non-Execuve Directors’ compensaon and disclosures
The Nominaon and Remuneraon Commiee recommends all
fees/compensaon paid to the Non-Execuve Directors (including
Independent Directors) and thereaer, the fees/compensaon is
xed by the Board and approved by the Members in the General
Meeng, if required.
(xiii) Code of Conduct
Your Company has received conrmaons from the Board and the
Senior Management Personnel regarding their adherence to the
Code of Conduct. The Annual Report of the Company contains a
cercate by the Managing Director & Chief Execuve Ocer, on
the compliance declaraons received from the Board and Senior
Management. The Code has been hosted on the Company’s
website under the web link hps://www.ashokleyland.com/in/
en/investors/investor-informaon/corporate-governance.
(xiv) Code of Conduct for Prohibion of Insider Trading
Your Company has adopted a Code of Conduct as per Securies
and Exchange Board of India (Prohibion of Insider Trading)
Regulaons, 2015, as amended. All Designated Persons who could
have access to the Unpublished Price Sensive Informaon of
the Company are governed by the Code. During the year under
review, the Company is in compliance with SEBI (Prohibion of
Insider Trading) Regulaons, 2015. On a quarterly basis, the Audit
Commiee reviews the compliance with these Regulaons. Your
Company has also formulated a Code of Pracses and Procedures
for Fair Disclosure of Unpublished Price Sensive Informaon. The
Codes have been hosted the Company’s website at hps://www.
ashokleyland.com/in/en/investors/investor-informaon/policies.
(xv) Your Company has obtained a cercate from a Company
secretary in pracce that none of the Directors on the Board
of the Company have been debarred or disqualied from being
appointed or connuing as directors of companies by the
Securies and Exchange Board of India/Ministry of Corporate
Aairs or any such statutory authority. The same is aached as
Annexure E.
(xvi) During the year under review, the Company has not raised any
funds through preferenal allotment or public issue or rights
issue or qualied instuons placement and hence the disclosure
as specied under Regulaon 32(4) & 32(7A) of the SEBI Lisng
Regulaons is not applicable.
(xvii) During the year under review, the Company had not granted any
loans/advances in the nature of loans to rms/companies in which
Directors are interested (in terms of Secon 184(2) of the Act).
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
Annual Report 2022-23 43
(xviii) The requirements of Regulaon 17 to Regulaon 27 of the SEBI
Lisng Regulaons and clauses (b) to (i) of Regulaon 46(2) to
the extent applicable to the Company have been complied with
as disclosed in this Report.
Subsidiary companies
Your Company monitors performance of subsidiary companies (list of
subsidiary companies has been provided in the nancial statements),
inter-alia, by the following means:
a) The Audit Commiee reviews the nancial statements, in
parcular, the investments made by the unlisted subsidiary
companies.
b) The minutes of the meengs of the Board of directors of the
unlisted subsidiary companies were placed at the meengs of
the Board of Directors of the Company.
c) The statement of all signicant transacons and arrangements
entered into by the Unlisted subsidiary companies is placed
before the Audit Commiee on a periodical basis.
d) Material Subsidiary: Your Company has a material subsidiary viz.,
Hinduja Leyland Finance Limited (HLFL). The details of HLFL is as
below:
● HLFL was incorporated on November 12, 2008 at No. 1,
Sardar Patel Road, Guindy, Chennai – 600 032. Subsequently,
the Registered Oce of HLFL was shied to Hinduja House,
171, Dr. Annie Besant Road, Worli, Mumbai – 400 018 with
eect from June 8, 2022.
● The names of the Joint Statutory Auditors of HLFL and
their date of appointment is as below:
Name of the
Statutory
Auditors
Date of appointment
M/s. Suresh
Surana &
Associates
LLP, Chartered
Accountants
Appointed at the 14
th
Annual General
Meeng held on September 19, 2022.
Period: 2 years from the conclusion
of the 14
th
Annual General Meeng
held on September 19, 2022 ll the
conclusion of the 16
th
Annual General
Meeng to be held in FY 2023-24.
M/s. Walker
Chandiok
& Co. LLP,
Chartered
Accountants
Appointed at the 14
th
Annual General
Meeng held on September 19, 2022.
Period: 3 years from the conclusion
of the 14
th
Annual General Meeng
held on September 19, 2022 ll the
conclusion of the 17
th
Annual General
Meeng to be held in FY 2024-25.
● Mr. Jean Brunol, Independent Director of the Company
is a Director on the Board of HLFL, as required under
Regulaon 24(1) of SEBI Lisng Regulaons.
e) Your Company has not disposed o any shares in its material
subsidiary resulng in reducon of its shareholding to less than
or equal to y percent or cease control over the subsidiary.
During the year under review, the Board of Directors of HLFL
has approved the Scheme of Merger by absorpon of HLFL
into NXTDIGITAL Limited, subject to the receipt of approvals
from various statutory and regulatory authories, respecve
shareholders and creditors at a share exchange rao of Twenty-
ve equity shares of face value of ` 10/- each of NXTDIGITAL
for every Ten equity shares of face value of ` 10/- each held in
HLFL. The merger is under progress and the updates on the same
would be inmated to the Stock Exchanges as required under the
Regulaons.
f) Your Company has not sold/disposed/leased any of its assets
amounng to more than twenty percent of the assets of the
material subsidiary on an aggregate basis during the current
reporng nancial year.
g) Your Company formulated a Policy on Material Subsidiary
as required under SEBI Lisng Regulaons and the policy is
hosted on the website of the Company under the web link:
hps://www.ashokleyland.com/backend/in/wp-content/uploads/
sites/2/2021/01/PolicyonMaterialSubsidary.pdf#toolbar=0.
Means of Communicaon
(i) Results: The quarterly, half yearly and annual results are normally
published in one leading naonal English business newspaper
(Business Standard) and in one vernacular Tamil newspaper
(Dinamani). The quarterly results and presentaons are also
displayed on the Company’s website www.ashokleyland.com.
(ii) Website: Your Company’s website contains a dedicated secon
“Investors” which displays details/informaon of interest to
various stakeholders. The “Media” secon also provides various
press releases and general informaon about the Company.
(iii) News releases: Ocial press releases are sent to the Stock
Exchanges and the same is hosted on the website of the Company.
(iv) Presentaons to instuonal investors/analysts: Detailed
presentaons, if any, made to instuonal investors and analysts
is hosted on the website of the Company.
A statement whether the Board had not accepted any recommendaon
of any commiee of the Board which is mandatorily required.
During the year, there has been no instance where the Board did not
accept the recommendaon of its Commiees.
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
44 Ashok Leyland Limited
General shareholder informaon
A. Seventy Fourth Annual General Meeng
Day, Date and Time Friday, July 21, 2023 at 2.45 P.M. (IST)
Venue Video Conferencing or other Audio-Visual means
B. Financial Year April 1, 2022 to March 31, 2023
C. Book closure dates Saturday, July 8, 2023 to Friday, July 21, 2023 (both days inclusive)
D. Date of payment of dividend Within 30 days from the AGM date upon declaraon of dividend by the Members at the
ensuing AGM
E. Lisng of Equity Shares BSE Limited (“BSE”),
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001
Naonal Stock Exchange of India Ltd. (“NSE”)
Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051
F. Lisng of Privately placed Secured
Non- Converble debentures
NSE
Lisng Fee Annual lisng fee for the nancial year 2022-23 has been paid to both the Stock Exchanges.
Depository Fee Annual custody fee for the nancial year 2022-23 has been paid to the Depositories.
Corporate Identy Number L34101TN1948PLC000105
G. Stock Code
i) Trading Symbol at BSE 500477
NSE ASHOKLEY
ii) Demat ISIN in NSDL & CDSL
Equity Shares INE208A01029
Non-Converble Debentures ISIN:
INE208A07380
INE208A07398
INE208A07406
Details of Debenture Trustees Trustee 1:
SBICAP Trustee Company Limited
Apeejay House
3, Dinshaw Wachha Road
Churchgate, Mumbai - 400 020
Tel: +91 22 4302 5555/2020
Fax: +91 22 2204 0465
E-mail: corporate@sbicaptrustee.com
Website: www.sbicaptrustee.com
SEBI Reg. No.: IND000000536
Trustee 2:
Axis Trustee Services Limited
The Ruby, 2
nd
Floor, SW, 29 Senapa Bapat Marg,
Dadar West, Mumbai-400 028
Tel No. 022 – 62300451
E-mail: debenturetrustee@axistrustee.com; compliance@axistrustee.in
Website: www.axistrustee.com
SEBI Reg. No.: IND000000494
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
Annual Report 2022-23 45
H. Stock Market Data
Month NSE BSE
Share Price CNX Niy Points Share Price Sensex Points
High (`) Low (`) High Low High (`) Low (`) High Low
Apr-22 132.00 116.30 18,114.65 16,824.70 131.95 116.35 60,845.10 56,009.07
May-22 143.00 113.00 17,132.85 15,735.75 143.10 113.00 57,184.21 52,632.48
Jun-22 149.45 128.20 16,793.85 15,183.40 149.40 128.35 56,432.65 50,921.22
Jul-22 154.50 140.55 17,172.80 15,511.05 154.45 140.60 57,619.27 52,094.25
Aug-22 158.25 139.60 17,992.20 17,154.80 158.15 139.65 60,411.20 57,367.47
Sep-22 169.45 146.30 18,096.15 16,747.70 169.40 146.25 60,676.12 56,147.23
Oct-22 160.50 141.70 18,022.80 16,855.55 160.30 141.70 60,786.70 56,683.40
Nov-22 154.40 141.65 18,816.05 17,959.20 154.70 141.70 63,303.01 60,425.47
Dec-22 150.60 135.20 18,887.60 17,774.25 150.70 135.15 63,583.07 59,754.10
Jan-23 152.80 143.30 18,251.95 17,405.55 152.80 143.35 61,343.96 58,699.20
Feb-23 156.30 137.60 18,134.75 17,255.20 156.25 137.70 61,682.25 58,795.97
Mar-23 146.50 133.10 17,799.95 16,828.35 146.45 133.10 60,498.48 57,084.91
I. Share Price performance in comparison to broad based indices - NSE Niy and BSE Sensex Share Price Movement (NSE and BSE)
BSE - April 2022 to March 2023
60845.1
57184.21
56432.65
57619.27
60411.2
60676.12
60786.7
63303.01
63583.07
61343.96
61682.25
60498.48
131.95
143.10
149.40
154.45
158.15
169.40
160.30
154.70
150.70
152.80
156.25
146.45
116.35
113.00
128.35
140.60
139.65
146.25
141.70 141.70
135.15
143.35
137.70
133.10
₹ 100
₹ 110
₹ 120
₹ 130
₹ 140
₹ 150
₹ 160
₹ 170
₹ 180
₹ 190
₹ 200
₹ 210
₹ 220
45,000
47,000
49,000
51,000
53,000
55,000
57,000
59,000
61,000
63,000
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
Price in Rupees
Numbers
Sensex
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
46 Ashok Leyland Limited
NSE - April 2022 to March 2023
18114.65
17132.85
16793.85
17172.8
17992.2
18096.15
18022.8
18816.05
18887.6
18251.95
18134.75
17799.95
132.00
143.00
149.45
154.50
158.25
169.45
160.50
154.40
150.60
152.80
156.30
146.50
116.30
113.00
128.20
140.55
139.60
146.30
141.70
141.65
135.20
143.30
137.60
133.10
₹ 100
₹ 110
₹ 120
₹ 130
₹ 140
₹ 150
₹ 160
₹ 170
₹ 180
₹ 190
₹ 200
10,000
11,000
12,000
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22Dec-22Jan-23Feb-23Mar-23
Price in Rupees
Numbers
Sensex
J. Registrar and Share Transfer Agents
Integrated Registry Management Services Private Limited, 2nd Floor, Kences Towers, 1 Ramakrishna Street, North Usman Road, T. Nagar,
Chennai - 600 017, E-mail: csdstd@integratedindia.in deals with all aspects of investor servicing relang to shares in both physical and demat
form.
K. Share Transfer System
The Board has authorised the MD & CEO and WTD & CFO to approve all roune transmissions, change of name etc., of shares. Such approval
is being given at frequent intervals (55 mes during 2022-23). Requests for dematerialisaon were conrmed within een days and those
requests for transmission were approved within seven days.
Members may note that transfer of shares in physical mode is prohibited eecve April 01, 2019 pursuant to SEBI’s amendment nocaon
dated June 08, 2018.
L. Details of Unclaimed Securies Suspense Account
Parculars Number of
Shareholders
Number of Shares
Aggregate number of shareholders and the outstanding shares in the Unclaimed Shares
Suspense Account lying as on April 1, 2022
444 3,99,901
Number of shareholders who approached the Company for transfer of shares from Unclaimed
Shares Suspense Account during the year
7 8,200
Number of shareholders to whom shares were transferred from Unclaimed Shares Suspense
Account during the year
7 8,200
Shareholders whose shares are transferred to the demat account of the IEPF Authority as per
Secon 124 of the Act
134 1,29,360
Aggregate number of shareholders and the outstanding shares in the Unclaimed Shares
Suspense Account lying as on March 31, 2023
303 2,62,341
The vong rights on the shares outstanding in the suspense account as on March 31, 2023 shall remain frozen ll the righul owner of such
shares claims the shares.
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
Annual Report 2022-23 47
M. Shares transferred to IEPF Authority
Pursuant to Secons 124 and 125 of the Act read with the
Investor Educaon and Protecon Fund Authority (Accounng,
Audit, Transfer and Refund) Rules, 2016 (“IEPF Rules”), shares in
respect of which dividends have remained unclaimed or unpaid
for a period of seven consecuve years or more is required to
be transferred to the Investor Educaon and Protecon Fund
Authority (‘IEPF Authority’). In terms of the IEPF Rules, 733,362
shares pertaining to 1,166 holders were transferred to the IEPF
Authority during the FY 2022-23. The vong rights on the shares
outstanding in the IEPF Authority as on March 31, 2023 remains
frozen ll the righul owner of such shares claim the same.
N. Instrucon to Members
As per SEBI Circulars dated November 3, 2021 and March 16,
2023, Members holding shares in physical mode are requested
to update their KYC details viz., (i) PAN (ii) Nominaon (iii)
Updaon of complete postal address, Mobile No. and E-mail ID
(iv) Updaon of Bank details (v) Updaon of Specimen signature
of shareholder.
Members holding shares in physical mode are required to furnish
all the above details immediately, failing which all such physical
folios shall stand frozen with eect from October 1, 2023.
Members may get in touch with Integrated Registry Management
Services Private Limited, Registrar and Share Transfer Agent, for
further informaon.
O. (i) Distribuon of Shareholding as on March 31, 2023
Sl.
No.
Category of
shares
Holders % to
holders
Shares % to
capital
1. Up to 50 6,61,933 57.77 1,04,58,476 0.36
2. 51-100 1,60,700 14.03 1,40,05,896 0.48
3. 101-200 1,14,232 9.97 1,87,67,707 0.64
4. 201-500 1,03,801 9.06 3,68,21,689 1.25
5. 501-1000 52,010 4.54 4,13,85,848 1.41
6. 1001-2000 27,983 2.44 4,27,40,516 1.45
7. 2001-5000 17,241 1.50 5,60,47,487 1.91
8. 5001-10000 4,875 0.43 3,52,61,175 1.20
9. 10001 and above 2,957 0.26 2,68,06,38,482 91.30
Total 11,45,732 100.00 2,93,61,27,276 100.00
(ii) Shareholding paern as on March 31, 2023
Sl
No.
Category Shares %
1 Promoters 1,50,06,60,261 51.11
2 Resident Individuals / Associaon
Of Persons / HUF
29,80,18,461 10.15
Sl
No.
Category Shares %
3 IEPF Authority / Unclaimed
Securies Suspense Account
65,43,906 0.22
4 Clearing Members 2,71,893 0.01
5 Financial Instuons/Insurance Co.
/ State Govt./Govt. Companies
21,58,13,750 7.35
6 Foreign Instuonal Investors 7,500 0.00
7 Foreign Porolio Investors 43,25,54,620 14.73
8 NRI / OCB / Corporate Bodies
- Foreign / Foreign Naonal /
Foreign Banks
1,35,31,229 0.46
9 Corporate Bodies / Limited Liability
Partnership
1,13,05,422 0.39
10 Mutual Funds /UTI 42,29,64,220 14.41
11 Trusts 18,82,377 0.06
12 Banks 26,33,104 0.09
13 Alternate Investment Fund 62,22,533 0.21
14 Others - GDR A/C 2,37,18,000 0.81
Grand Total 2,93,61,27,276 100.00
(iii) Details of Shares
Type Number of
Shares
% to paid
up capital
Number of
Holders
Physical 1,00,97,647 0.34 7,963
Electronic - NSDL 2,77,82,98,861 94.63 4,45,309
Electronic - CDSL 14,77,30,768 5.03 6,92,460
Total 2,93,61,27,276 100.00 11,45,732
P. Dematerialisaon of shares and liquidity
Your Company’s shares are compulsorily traded in dematerialised
form on NSE and BSE. Equity shares of the Company represenng
99.66% of the Company’s equity share capital are dematerialised
as on March 31, 2023. The enre Promoter’s holdings are in
electronic form and the same is in line with the direcons issued
by SEBI.
The equity shares of the Company are regularly traded in BSE
and NSE and hence have good liquidity.
Members are requested to note that in line with the SEBI circular
dated January 25, 2022, issuance of share cercates in case of
transmission and requests for duplicate share cercates can
only be undertaken in dematerialised mode.
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
48 Ashok Leyland Limited
Q. Plant Locaons
Ennore
Kathivakkam High Road
Ennore
Chennai - 600 057
Tamil Nadu
Hosur – Unit I
175 Hosur Industrial Complex
Hosur - 635 126
Tamil Nadu
Hosur – Unit II
77 Electronic Complex Perandapalli Village
Hosur - 635 109
Tamil Nadu
Ennore (Foundry)
Kathivakkam High Road Ennore
Chennai - 600 057
Tamil Nadu
Bhandara
Plot No.1 MIDC Industrial Area
Village Gadegaon, Sakoli Taluk
Bhandara - 441 904
Maharashtra
Alwar
Plot No.SPL 298 Matsya Indl. Area,
Alwar - 301 030
Rajasthan
Hosur - Unit IIA
Cab Panel Press Shop
SIPCOT Industrial Complex
Mornapalli village
Hosur - 635 109
Tamil Nadu
Pantnagar
Plot No.1, Sector XII II E, Pantnagar,
Pin - 263 153
Uarakhand
Sriperumbudur (Foundry)
Plot No K2, SIPCOT Industrial Estate,
Arneri Village, Sriperumbudur
Kanchipuram District
Pin - 602 105
Technical Centre
Vellivoyalchavadi
Via Manali New Town
Chennai - 600 103 Tamil Nadu
Vijayawada
Model Industrial Park,
Mallavalli Village,
Krishna District, Andhra Pradesh
R. Outstanding GDR/Warrants and Converble Notes, Conversion date and likely impact on equity
No instrument is outstanding for conversion as on March 31, 2023 having an impact on equity.
S. Commodity price risk or foreign exchange risk and hedging acvies
Your Company being a sizable user of commodies, is exposed to the price risk on account of procurement of commodies. Your Company
uses foreign currency forward contracts to hedge its risks associated with foreign currency uctuaons relang to rm commitments and
highly probable forecast transacons.
T. Disclosure pursuant to SEBI/HO/CFD/CMD1/CIR/P2018/0000000141 circular dated November 15, 2018
Risk management policy of the listed enty with respect to commodies including through hedging: Your Company has framed a policy on
commodity risks.
Exposure of the listed enty to commodity and commodity risks faced by the enty throughout the year:
a) Total exposure of the listed enty to commodies is ` 2,214 Crores.
b) Exposure of the listed enty to various commodies:
Commodity
Name
Exposure in
INR towards
the parcular
commodity in
FY 2022-23
Exposure in Quanty
terms towards the
parcular commodity
% of such exposure hedged through commodity derivaves
Domesc market Internaonal market Total
OTC Exchange OTC Exchange
Flat Steel
procured by us
directly for our
Consumpon
` 2,214 Crores 3.03 lakh metric tons Nil Nil Nil Nil Nil Nil
c) Commodity risks faced by the listed enty during the year and how they have been managed:
Prices for the commodies are managed through long term contract/periodic selement based on commodity trends. The Company
does not have exposure hedge through commodity.
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
Annual Report 2022-23 49
U. Address for Correspondence
Registrar & Share Transfer Agents (R&TA)
(maers relang to Shares, Dividends,
Annual Reports)
Integrated Registry Management Services
Private Limited
2
nd
Floor, Kences Towers 1,
Ramakrishna Street North Usman Road
T Nagar, Chennai - 600 017
Tel : 91-44-2814 0801/03
Fax : 91-44-28142479
e-mail : csdstd@integratedindia.in
For any other general maers or in case of
any dicules/ grievances
Secretarial Department
Ashok Leyland Limited
No.1 Sardar Patel Road Guindy,
Chennai - 600 032
Tel. : 91-44-2220 6000
Fax : 91-44-2230 4410
e-mail : secr[email protected]
csdstd@integratedindia.in
Website Address www.ashokleyland.com
Name of the Compliance Ocer N Ramanathan, Company Secretary
V. Credit Rangs
Name of the
Agency
Type of Instrument Amount
(in ` Crores)
Rang Acon
ICRA
Fund Based Limits 2,000.00 Rearmed ICRA AA (Outlook revised to ‘Stable’ from ‘Negave’) / ICRA A1+
Non-Fund Based Limits 1,200.00 Rearmed ICRA AA (Outlook revised to ‘Stable’ from ‘Negave’) / ICRA A1+
Long Term Loans 1,318.75 Rearmed ICRA AA (Outlook revised to ‘Stable’ from ‘Negave’)
Long term/Short term:
Unallocated
200.00 Rearmed ICRA AA (Outlook revised to ‘Stable’ from ‘Negave’) / ICRA A1+
Short Term: Commercial
Paper
2,000.00 Rearmed ICRA A1+
Long Term: Non-
Converble Debentures
850.00 Rearmed ICRA AA (Outlook revised to ‘Stable’ from ‘Negave’)
CARE
Fund Based Limits 2,000.00 Rearmed CARE AA (Outlook revised to ‘Stable’ from ‘Negave’) / CARE A1+
Non-Fund Based Limits 1,200.00 Rearmed CARE AA (Outlook revised to ‘Stable’ from ‘Negave’) / CARE A1+
Long Term Loans 400.00 Rearmed CARE AA (Outlook revised to ‘Stable’ from ‘Negave’)
Long term/Short term:
Unallocated
500.00 Rearmed CARE AA (Outlook revised to ‘Stable’ from ‘Negave’) / CARE A1+
Short Term: Commercial
Paper
2,000.00 Rearmed CARE A1+
Long Term: Non-
Converble Debentures
600.00 Rearmed CARE AA (Outlook revised to ‘Stable’ from ‘Negave’)
DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL WITH THE COMPANY’S CODE OF
CONDUCT
This is to conrm that for the nancial year ended March 31, 2023 all members of the Board and the Senior Management Personnel have armed
in wring their adherence to the Code of Conduct adopted by the Company.
May 23, 2023 Shenu Agarwal
Chennai Managing Director & Chief Execuve Ocer
ANNEXURE C TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE
50 Ashok Leyland Limited
ANNEXURE D TO THE BOARD’S REPORT
PRACTISING COMPANY SECRETARIES’ CERTIFICATE ON
CORPORATE GOVERNANCE
The Members
ASHOK LEYLAND LIMITED
No. 1, Sardar Patel Road,
Guindy, Chennai – 600032.
We have examined documents, books, papers, minutes, forms and returns led and other relevant records maintained by ASHOK LEYLAND
LIMITED, (L34101TN1948PLC000105) (hereinaer referred to as “the Company”) having its Registered Oce at No. 1, Sardar Patel Road, Guindy,
Chennai – 600032, for the purpose of cerfying compliance of the condions of Corporate Governance under Regulaons 17 to 27 and clauses
(b) to (i) and (t) of regulaon 46(2) and para C, D and E of Schedule V and Regulaon 34 (3) of Securies and Exchange Board of India (Lisng
Obligaons and Disclosure Requirements) Regulaons, 2015 as amended (hereinaer referred to as (“SEBI (LODR) Regulaons 2015”) for the
nancial year ended 31
st
March, 2023. We have obtained all the informaon and explanaons, which to the best of our knowledge and belief
were necessary for the purpose of cercaon.
The compliance of the condions of Corporate Governance is the responsibility of the management. Our examinaon was limited to the procedures
and implementaon thereof, adopted by the Company for ensuring the compliance of the condions of Corporate Governance. It is neither an
audit nor an expression of opinion on the nancial statements of the Company.
In our opinion and on the basis of our examinaon of the records produced, explanaons and informaon furnished, we cerfy that the Company
has complied regarding the condions of Corporate Governance as spulated in Regulaons 17 to 27 and clauses (b) to (i) and (t) of regulaon
46(2) and para C, D and E of Schedule V and Regulaon 34 (3) of SEBI (LODR) Regulaons, 2015 for the nancial year ended 31
st
March, 2023.
This Cercate is neither an assurance as to the future viability of the Company nor of the ecacy or eecveness with which the management
has conducted the aairs of the Company.
Place: CHENNAI
Date : May 23, 2023
For R. Sridharan & Associates
Company Secretaries
CS R. Sridharan
FCS No. 4775
CP No. 3239
PR NO.657/2020
UIN: S2003TN063400
UDIN: F004775E000336557
Annual Report 2022-23 51
ANNEXURE E TO THE BOARD’S REPORT
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
Pursuant to Regulaon 34 (3) read with Schedule V Para-C Sub clause (10) (i) of SEBI (Lisng Obligaons and Disclosure Requirements)
Regulaons, 2015 as amended
The Members,
ASHOK LEYLAND LIMITED
CIN: L34101TN1948PLC000105
No. 1, Sardar Patel Road,
Guindy, Chennai - 600032.
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of ASHOK LEYLAND LIMITED (CIN:
L34101TN1948PLC000105) and having its Registered Oce at No. 1, Sardar Patel Road, Guindy, Chennai- 600032 (hereinaer referred to as “The
Company”) produced before us by the Company for the purpose of issuing this cercate, in accordance with Regulaon 34 (3) read with Schedule
V Part-C Sub clause 10 (i) of the SEBI (Lisng Obligaons and Disclosure Requirements) Regulaons 2015.
In our opinion and to the best of our knowledge and according to the vericaons (including Director Idencaon Number (DIN) Status at
the portal www.mca.gov.in) and based on such examinaon as well as informaon and explanaons furnished to us, which to the best of our
knowledge and belief were necessary for the purpose of issue of this cercate and based on such vericaon as considered necessary, we hereby
cerfy that none of the Directors as stated below on the Board of the Company as on 31
st
March, 2023 have been debarred or disqualied from
being appointed or connuing as Directors of Companies by the Securies and Exchange Board of India/ Ministry of Corporate Aairs or any such
other statutory authority.
S.
NO
DIN NAME OF THE DIRECTOR DESIGNATION DATE OF APPOINTMENT
1 00133410 Mr. DHEERAJ GOPICHAND HINDUJA EXECUTIVE DIRECTOR CHAIRMAN 03/09/1996
2 03044965 Mr. JEAN BRUNOL NON-EXECUTIVE - INDEPENDENT DIRECTOR 20/10/2010
3 00008221 Mr. SANJAY KHATAU ASHER NON-EXECUTIVE - INDEPENDENT DIRECTOR 21/12/2010
4 06570499 Prof. Dr. ANDREAS HUBERTUS BIAGOSCH NON-EXECUTIVE - INDEPENDENT DIRECTOR 10/05/2013
5 00774574 Ms. MANISHA GIROTRA NON-EXECUTIVE - INDEPENDENT DIRECTOR 08/09/2014
6 07712699 Mr. JOSE MARIA ALAPONT NON-EXECUTIVE - INDEPENDENT DIRECTOR 25/01/2017
7 01746102 Mr. GOPAL MAHADEVAN WHOLE TIME DIRECTOR & CHIEF FINANCIAL OFFICER 24/05/2019
8 05251806 Mr. SAUGATA GUPTA NON-EXECUTIVE INDEPENDENT DIRECTOR 08/11/2019
9 00010175 Dr. CANAKAPALLI BHAKTAVATASALA RAO NON-EXECUTIVE - NON INDEPENDENT DIRECTOR 12/08/2020
10 07128441 Mr. SHOM ASHOK HINDUJA NON-EXECUTIVE - NON INDEPENDENT DIRECTOR 12/11/2021
11 03485730 Mr. SHENU AGARWAL MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER 08/12/2022
Ensuring the eligibility of, for the appointment/ connuity of, every Director on the Board is the responsibility of the management of the Company.
Our responsibility is to express an opinion on these based on our vericaon. This cercate is neither an assurance as to the future viability of
the Company nor of the eciency or eecveness with which the management has conducted the aairs of the Company.
Place: CHENNAI
Date : May 23, 2023
For R. SRIDHARAN & ASSOCIATES
COMPANY SECRETARIES
CS R.SRIDHARAN
CP No. 3239
FCS No. 4775
PR.No.657/2020
UIN: S2003TN063400
UDIN: F004775E000336612
52 Ashok Leyland Limited
ANNEXURE F TO THE BOARD’S REPORT
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A. MARKET TRENDS
Economy – India
According to the second advance esmates released by the
Naonal Stascal Oce (NSO) in January this year India’s
real GDP growth for FY23 is placed at 7.0%, driven by private
consumpon and public investment. Economic acvity remained
resilient in Q4. Index of Industrial Producon (IIP) expanded by
5.2% while the output of eight core industries rose even faster
by 8.9% in Jan’23 & 6.0% in Feb’23, indicave of the strength of
industrial acvity. In the services sector, domesc air passenger
trac, port freight trac, e-way bills and toll collecons posted
healthy growth in Q4, while railway freight trac registered a
modest growth. Purchasing Managers Indices (PMI) pointed
towards sustained expansion in both manufacturing (56.4) and
services in March (57.8).
A good rabi crop should strengthen rural demand, while the
sustained buoyancy in contact-intensive services should support
urban demand. The government’s thrust on capital expenditure,
above trend capacity ulizaon in manufacturing, double digit
credit growth and the moderaon in commodity prices are
expected to bolster manufacturing and investment acvity. GOI
in the Union Budget 2023-24 increased total capex outlay by
33.0% to ₹ 10 lakh Crore. 100 crical transport infrastructure
projects, for last and rst mile connecvity for ports, coal, steel,
ferlizer, and food grains sectors have been idened. Budgetary
allocaon for MoRTH saw a 25.0% increase totaling to ₹ 2.6 lakh
Crore. The TIV for e-Buses & e-LCVs is expected to grow at CAGR
of 37% and 73% respecvely ll 2032. The external demand drag
could accentuate, given slowing global trade and output. Taking
all these factors into consideraon, RBI has forecasted India’s real
GDP growth for FY24 at 6.5%.
The inaon trajectory for 2023-24 would be shaped by both
domesc and global factors. The expectaon of a record food
grains producon bodes well for the food prices outlook. The
impact of recent unseasonal rains and hailstorms, however,
needs to be watched. Crude oil prices outlook is subject to high
uncertainty. Taking into account these factors and assuming an
annual average crude oil price (Indian basket) of US$ 85/barrel
and a normal monsoon, CPI inaon is projected at 5.2% for FY24.
Domesc demand in India is expected to be robust and domesc
steel mills are not facing demand constraints. Rising oil stocks
in the US and expectaons of further interest rate increases
are likely to weigh on crude prices. With CNG prices moving
downwards from Apr 2023 and if diesel prices expected to stay
at current levels, the dierence between diesel and CNG prices
is expected to move higher and that could drive higher demand
for CNG vehicles going forward. Overall globally and domescally
commodity costs are expected to be stable for FY24. Going into
2023 automakers are more opmisc about the end of chip
shortage. However, some industry insiders have suggested that
the semiconductor shortage could stretch into 2024 but not with
the same intensity as earlier.
(Source: RBI MPC, Apr 2023)
Economy – World
The global economy appears poised for a gradual recovery
from the devastang eects of the pandemic and of war in
Ukraine. China is rebounding strongly following the reopening
of its economy. Supply-chain disrupons are unwinding, while
the dislocaons to energy and food markets caused by the
war are receding. Simultaneously, the massive and synchronous
ghtening of monetary policy by most central banks should
start to yield results, with inaon slowly going down. Although
inaon has declined as central banks have raised interest
rates and food and energy prices have come down, underlying
price pressures are proving scky, with labor markets ght in a
number of economies. Side eects from the fast rise in policy
rates are becoming apparent, as banking sector vulnerabilies are
coming into focus and fears of contagion have risen across the
broader nancial sector, including nonbank nancial instuons.
Policymakers are taking forceful acons to stabilize the banking
system. Global growth will boom out at 2.8% in 2023 before
rising modestly to 3.0% in 2024. Global inaon will decrease,
from 8.7% in 2022 to 7.0% in 2023 and 4.9% in 2024.
(Source: IMF WEO, Apr 2023)
Commercial Vehicle Market
The Commercial vehicle market (MHCV and LCV) in India grew by
34.3% YoY in total industry volumes (TIV) to 962,468 units from
716,566 units. This growth was led by 49.2% growth in M&HCV
segment which grew to 359,003 units from 240,577 units. The
LCV segment grew by 26.8% to 603,465 units from 475,989
units in FY22.FY23 started with economic acvity stabilizing as
a result of the ebbing of the third wave of COVID-19 and the
easing of restricons. Urban demand expanded while weakness
persisted in rural demand. Investment acvity gained tracon.
Merchandise exports recorded double digit expansion for the
fourteenth consecuve month in April. Non-oil non-gold imports
also grew robustly on the back of improving domesc demand.
In Q1FY23, CV Demand was higher compared to Q1FY22 driven
by both MHCVs & LCVs. CNG prices saw a huge revision in Apr’23
and with Diesel prices being unchanged, the cost dierenal
between them dropped and that started a decline in the CNG
TIV which connued all of FY23.
In Q2FY23, urban consumpon was lied by discreonary
spending ahead of the fesval season and rural demand
gradually improved. Investment demand also gained tracon,
as reected in rising imports and domesc producon of capital
goods, steel consumpon and cement producon. Aggregate
supply condions also improved south-west monsoon rainfall
above the long period average. Acvity in industry and services
sectors remained in expansion, especially the laer, as reected
in PMIs and other high frequency indicators. Demand for
MHCVs and LCVs connued to increase compared to Q1FY23.
RBI’s enterprise surveys pointed to some easing of input cost
and output price pressures across manufacturing, services and
infrastructure rms; however, the pass-through of input costs to
prices remained incomplete.
In Q3FY23, economic acvity exhibited resilience supported by
good progress on the north-east monsoon and above average
reservoir levels. Acvity in the industry and services sectors
was in expansion mode with urban consumpon being lied by
pent-up spending and discreonary expenditure during fesval
season. GST collecons remained above ₹1.4 lakh Crore during
the quarter. Overall demand for MHCVs connued to rise while
& LCVs lagged.
Economic acvity remained resilient in Q4. IIP expanded faster in
Jan & Feb, indicave of the strength of industrial acvity. In the
services sector, domesc air passenger trac, port freight trac,
e-way bills and toll collecons posted healthy growth, while railway
freight trac registered a modest growth. The government’s
thrust on capital expenditure, above trend capacity ulizaon in
manufacturing, double digit credit growth and the moderaon
Annual Report 2022-23 53
ANNEXURE F TO THE BOARD’S REPORT
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
in commodity prices bolstered manufacturing and investment
acvity. With BS VI – OBD II norms coming into eect in Apr’23
and OEMs indicang their intenon to increase prices on account
of OBD II and commodity impact, sales of MHCVs was boosted by
pre-buying. Both MHCV & LCV TIVs were close to previous highs
seen in FY19 with LCV growth lagging MHCV growth.
The LCV Trucks (0-7.5T Segment) grew by 22.6% while the LCV
Bus segment also grew by 122.1% on a low base. CV exports
degrew by 14.8% over last year primarily led by 55.1% drop
in MHCV Trucks and 6.1% drop in LCV Trucks because of the
ongoing global slowdown and currency weakness in key Indian
export markets.
Segment Domesc Exports
2022-23 2021-22 Change 2022-23 2021-22 Change
M&HCV Buses 38,410 11,804 225.4% 10,543 6,499 62.2%
M&HCV Trucks 320,593 228,773 40.1% 11,524 25,682 -55.1%
M&HCV Total 359,003 240,577 49.2% 22,067 32,181 -31.4%
LCV Buses 44,315 19,957 122.1% 1,799 1,785 0.8%
LCV Trucks 559,150 456,032 22.6% 54,779 58,331 -6.1%
LCV Total 603,465 475,989 26.8% 56,578 60,116 -5.9%
CV Total 962,468 716,566 34.3% 78,645 92,297 -14.8%
Source: SIAM Flash Report March 2023
B. ASHOK LEYLAND – THE YEAR (2022-23) IN BRIEF
Your Company sold 114,247 M&HCVs in the domesc market (10,767 M&HCV Buses and 103,480 M&HCV Trucks including Defence vehicles),
registering a growth of 75.5% over last year. LCV with sales of 66,669 vehicles grew by 27.7% over the previous year. Your Company was
able to achieve market share of 31.8% in M&HCV Bus and Truck segment, an increase of 4.7% over last year.
36,867
53,291
79,223
84,588
1,02,826
1,15,613
53,227
43,210
61,301
1,03,480
14,951
13,151
19,586
17,725
13,708
16,323
18,141
2,795
3,789
10,767
2013-142014-15 2015-16 2016-172017-18 2018-19 2019-20 2020-21 2021-22 2022-23
M&HCV Bus M&HCV Trucks
M&HCV Truck segment
Industry sales of commercial vehicles saw steep growth in FY23
on the back of economic acvity supported by Government
intervenons and infrastructure growth. Your Company’s sale
in M&HCV Trucks segment (excluding Defence vehicles) in India
grew by 68.6% to 102,753 units in FY23, as compared to 60,947
units in FY22. Your Company enhanced its product porolio in
the ICV trucks segment with the Partner Super plaorm to cater
to the boost in demand for ecommerce and last-mile delivery
applicaons. Further, product variants for RMC applicaons and
mining ppers helped your Company strengthen its presence in
the Construcon and Mining industry. Your Company pioneered
in launching the 42Ton and 44Ton Tractor trailer models, along
with the introducon of CNG variants in the Haulage segment,
which were well received during the year.
M&HCV Bus segment
Industry sales of M&HCV Bus segment witnessed a mulfold
growth of 225.4% in FY23 compared to FY22, augmented by the
reopening of schools and colleges along with the replenishment
of eets by State Transport Undertakings. Your Company’s sale in
M&HCV Bus segment (excluding Defence vehicles) in India grew
by 256.7% to 10,764 units in FY23, as compared to 3,018 units
in FY22.
Internaonal Operaons
In Internaonal markets, during FY23, your Company made
signicant strides in line with our strategy to expand addressable
market through geographical and product porolio expansion.
Your Company added distributors in 12 countries and launched
5 new products and their variants. It now has presence in
over 25 countries in Africa for retail market operaons. Your
Company connued to strengthen its market leadership posion
in bus segment in SAARC and GCC. LCV products, both in RHD
and LHD, launched in African and GCC markets have helped it
make very good inroads in the Goods segment. Due to acute
forex constraints and depreciaon of local currencies in most of
the markets (except GCC), where your Company is present. Last
year saw industry MHCV exports from India dropping more than
30.0% over FY22. However, your Company sold 11,289 units in IO
markets, an increase of 2.0% over previous year.
54 Ashok Leyland Limited
ANNEXURE F TO THE BOARD’S REPORT
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
LCV segment
In FY23, ‘Bada Dost Plaorm’ has helped your Company reach
highest ever sales of 66,669 nos since incepon. In addion,
for the rst me in the commercial vehicle industry, your
Company released a Limited-Edion variant of the BADA DOST.
This Limited edion Bada Dost, came packed with many Industry
rst oerings such as touchscreen infotainment with Bluetooth,
reverse parking, central locking etc. Your Company Market
share in the SCV category stood healthy and strong at 19.6%
despite economic challenges and semiconductor shortages. Your
Company is on track to launch three new products in FY24 for
the domesc market. Your Company connues to deliver best-
in-industry SSI/CSI, lowest defect product, low warranty cost
and high service retenon through its network of 620 outlets,
achieving a service market share of 71.0%. Bada Dost i2 was
awarded Pick up of the Year 2022-23 and Bada Dost special
edion was awarded the Markeng campaign of the year at the
Global Awards for Retail Excellence presented by ET Now and
World Leadership Congress.
Power Soluons Business
Your Company has achieved a growth of 9.0% in Power Soluons
Business. Aggressive rural and industry development coupled
with ongoing infrastructure expansion acvies has favored
Powergen and Industrial business segments. While there has
been an establishment phase of BS CEV IV in Industrial segment,
our market development measures in new applicaons with
equipment manufacturers has favored the sustained growth
opportunies. Posive trend backed by good monsoon in
Agricultural segment has fueled the demand. Overall, your
Company has achieved sales of 22,925 engines in FY23.
Defence
In FY23, your Company supplied 782 completely built-up units
(CBUs) & was able to reduce dependency on VFJ Kits. Your
Company is proud to execute 360 water bowsers in record me
to Indian Army, expanded into DGBR (Directorate General Border
Roads) with BAGH variants & Indian Navy with HMV 4x4 (RIV
– Rapid Intervenon Vehicle). Your Company also launched Jeet
4x4 in Light vehicles segment during Defence expo.
Aermarket
Your Company is acvely focused on serving the needs of customers
throughout the product life-cycle through its Aermarket oerings.
The Aermarket business grew by 31.0% over last year and added
to the overall protability of the Company. Your Company ensured
connuous availability of its extended range of parts during
disrupon of global supply chain, through early intervenons at
Spare Parts Warehouses, Supplier partners and Channel Partners.
Targeted engagement with suppliers and logiscs partners ensured
that margins of Spare Parts Business were sustained, despite
the commodity price increase. Aermarket channel saw record
parcipaon from independent garages and ended the year with
highest ever number of exclusive retail parts store for seventh
year in a row. Leykart, the online fulllment mobile app for Ashok
Leyland Genuine Spares, delivered growth in order fulllment and
user-parcipaon for the fourth year in a row. Service funcon
connues to improve penetraon in service products. Automaon
and Digitalizaon iniaves enabled the service funcon to reduce
cycle mes of key internal operaons and delivered substanal
operang costs reducon. Signicant focus was accorded in
building capability of Channel partners by way of exhausve and
mul-modal training curriculum. AL Care app connues to serve as
a one-stop soluon to address service needs of our customers.
Network
Your Company connued to expand its primary network in both
MHCV & LCV segments to enhance accessibility of service across
cies in India. Your Company added 80 new MHCV outlets & 73
new LCV outlets during the year, increasing the total count to
809 MHCV touch-points and 620 LCV touchpoints respecvely.
To keep up with the rising commercial vehicle operaons in
Northern and Eastern regions of India, and the booming mining
pockets in Central regions of India, your Company opened more
than half of the new MHCV outlets in these regions.
Foundry Division
The Foundry Division of your Company is mainly catering to the
automove industry in product segments of Cylinder Block, Head
and Tractor Housings. For the year FY23 the Foundry division
achieved the producon of 98,117 MT (increase of 30.4% over
last year) and sales of 94,972 MT (increase of 39.1% over last
year).
Overall Summary
In summary, during FY23, your Company recorded total vehicle
sales of 180,916 units in the domesc market and 11,289 units
in the export market. Your Company worked as one team to
overcome the challenges and ramp up the operaons with single-
minded focus and agility to fulll the demand. Your Company has
set an ambious mission of transformave performance, across
all our business segments, over the coming years. Your Company
is commied more than ever to industry-leading standards of
quality, environment, safety, and health.
C. OPPORTUNITIES AND THREATS
The Indian commercial vehicle industry is opmisc about growth
prospects for FY24, driven by pick-up in construcon and mining,
and steady macro-economic growth. This growth comes from a
higher base (strong rebound in the last 2 scals) and possibly
cross the previous peak TIV seen in FY19. The healthy allocaon
for capital spending in the Union Budget 2023-24 is expected
to lead to infrastructure development in segments like roads,
metros, railways etc. which would in turn drive volumes for the
CV industry. Furthermore, the increased focus on replacement
of old vehicles and on green mobility also augurs well for the
sector. The Naonal Logiscs Policy announced last year aims to
improve the compeveness of Indian goods in domesc and
export markets by enabling smooth movement of goods across
the country. This will provide an all-encompassing plan for the
growth of the logiscs industry as a whole. There are green
shoots (enablers) for an emerging eMaaS business model for
the logiscs industry led by customer’s strong desire to engage
sustainable eet soluons driven by decarbonisaon ambions.
In ICVs growth is expected to be by the e-commerce sector with
a progressive shi to more CNG-powered vehicles. In MHCVs
the growth is primarily driven by movement of bulk goods &
construcon materials; which in-turn will fuel growth in Tippers
& Tractor trailers. Also, migraon from MAVs to higher GVW
Tractors will happen in industries like cement, coal, iron ore etc.
Growth for MHCV Buses is expected to be driven by opening up
of oces, educaonal instutes and post-Covid revival in inter-
city & mofussil segments. Further, scrappage of older government
vehicles is expected to drive replacement demand from State
Transport Undertakings STUs. Downside risks for FY24 growth
could emerge from rising interest rates on the back of persisng
inaon, commodity costs rising on the back of escalang geo-
polical tensions and volale nancial market condions.
Annual Report 2022-23 55
ANNEXURE F TO THE BOARD’S REPORT
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
D. RISK MANAGEMENT
During the year, the overall CV industry witnessed robust
growth in Total Industrial Volume and sales spurred by capital
and infrastructure investments by Government of India, posive
economic acvity, increased movement of people, goods &
services, etc.
Your Company also had an upck in sales volumes in both
M&HCV and LCV segments. Your Company focused on proacvely
managing the external and internal risks through appropriate
business strategies to overcome supply chain constraints,
connued to focus on employee health, safety & well-being,
worked closely to improve dealer & supplier sustainability,
launched several new products to bridge product gaps and
remain compeve, enhanced producvity and iniated cost
opmizaon iniaves. These mul-dimensional eorts have
supported your Company to remain agile and resilient to the
ever-changing business environment while remaining focused on
enhancing stakeholder value.
Your Company’s well-established Enterprise Risk Management
(ERM) framework has proacvely supported in idenfying the
risks and opportunies and addressing them through focused
migaon plans that are measurable and monitored on a
periodical basis. The ERM process of the organizaon is well
integrated with the strategic business planning process.
The risk management process encompasses risk idencaon,
impact assessment, eecve migaon plans, and risk reporng.
The signicant risks idened are tabled to the Risk Management
Commiee (“RMC”) of the Board along with a migaon plan.
The Company’s ERM process is overseen through the RMC of
the Board who ensure that the Company has an appropriate and
eecve ERM framework and apprise the Board on eecveness
of the ERM framework, signicant enterprise risks idened, and
the risk response implemented/planned.
E. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Given the nature of business, size and complexity of operaons,
your Company has designed an adequate internal control system
to ensure:
a. Transacons recorded are accurate, complete, and
authorised;
b. Adherence to accounng standards, complying with
applicable statutes and conforming to Company policies
and procedures;
c. Eecve use of resources and safeguarding assets.
Your Company has complied with the specic requirements
laid out under Secon 134(5)(e) of the Companies Act, 2013
which calls for establishment and implementaon of an Internal
Financial Control framework that supports compliance to the Act
in relaon to the Directors’ Responsibility Statement.
Your Company follows the COSO (Commiee of Sponsoring
Organizaons of the Treadway Commission) Internal Control
Framework, 2013 and The Instute of Chartered Accountants
of India’s Guidance Note on Audit of Internal Financial Controls
Over Financial Reporng that supports in evaluang the design
and operang eecveness of internal controls in a consistent
manner.
Further, your Company, through its inhouse independent and
mul-disciplinary Internal Audit funcon with support of external
experts where appropriate, carries out risk based Internal audit
reviews, based on the annual Internal Audit plan as approved by
the Audit Commiee of the Board. The Internal Audit funcon
reviews compliance with established design of the Internal control,
while ensuring the eciency and eecveness of operaons.
Signicant deciencies in Internal control idened if any, are
tracked for closure and validated.
The summary of the Internal Audit ndings and status of
implementaon of acon plans for risk migaon, are submied
to the Audit Commiee every quarter for review, and concerns
around residual risks if any, are presented to the Board.
F. INFORMATION SECURITY
At Ashok Leyland, we safeguard our vital Informaon from
threats, both internal and external, through adopon of best
pracces in Informaon Security. This has enabled your Company
minimize risks from cyber and other informaon security threats.
In the ever-increasing cyber threat landscape, your Company’s
Management has focused on ensuring adequate and eecve
Informaon Security governance across the organizaon.
Your Company has implemented Informaon Security best
pracces through the adopon of IS standards and building
a robust culture across the organisaon. The IS governance
is overseen by an independent funcon responsible for the
planning, review and improvement of the Informaon Security
processes to protect Condenality, Integrity, and Availability of
informaon assets.
During the year, your Company has undertaken adequate
precauons and implemented relevant Informaon Security
safeguards to ensure security of Informaon assets, along with
cyber security assessment as part of connuous monitoring on
hardware, soware and cloud environment.
G. FINANCIAL REVIEW
Summary of Prot and Loss account is given below:
` Crores
Parculars 2022-23 2021-22 Inc/
(Dec) %
Sales 36,144.14 21,688.29 66.7
Other income 116.14 76.13 52.6
Total 36,260.28 21,764.42 66.6
Expenditure
Material Cost 27,849.15 16,761.07 66.2
Employee benets expenses 2,113.86 1,694.60 24.7
Finance cost 289.09 301.11 (4.0)
Depreciaon and amorzaon 731.96 752.76 (2.8)
Other expenses 3,250.43 2,238.10 45.2
Total 34,234.49 21,747.64 57.4
Prot before exceponal
items and tax
2,025.79 16.78 11972.6
Exceponal items 84.61 510.83 (83.4)
Prot before tax 2,110.40 527.61 300.0
Tax expense 730.29 (14.22) 5235.7
Prot aer tax 1,380.11 541.83 154.7
Basic earnings per share (in `) 4.70 1.85 154.7
56 Ashok Leyland Limited
ANNEXURE F TO THE BOARD’S REPORT
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
During FY ’23, MHCV truck volumes of your Company has grown by
69% vs 40% growth registered by the Industry. This has led to the
market share improvement of your Company by 5.5% over FY ‘22.
Your Company’s domesc truck market share has improved from 26.8%
in FY ’22 to 32.3% in FY ’23. Your Company could also iniate price
increase in every quarter during FY ’23 there by recovering ~ 7.0%
(point to point) in domesc MHCV trucks.
Though the volume growth in terms of percentage is high for Bus
(184%), volumes are yet to catch up with the pre covid level. Total
industry volumes were at 38410 nos. as against a volume of 40000 to
45000 buses in a normal year. Price increases during the year fetched
~ 5.0% (point to point) in domesc MHCV buses.
Your Company’s LCV domesc volumes also grew by about 28% from
52222 nos to 66669 nos in FY ’23. Price increases during the year
fetched ~ 5.0%.
IO volumes for FY ’23 were at 11289 nos. which is 2% higher than
previous year (11014 nos).
Domesc spare parts revenue (including service products) grew by 24%
from ` 1869 Crores in FY ’22 to ` 2311 Crores.
Power soluons (engines) volumes grew by ~10% to 22925 units in
FY ’23.
Consequent to the volume increase as well as the price recoveries,
Your Company’s revenues grew by a signicant 67% to ` 36144 Crores
over previous year (21,688 Crores).
Costs:
Material Cost: Prices of commodies covering at, proprietary & spring
steel, forging, casng and aluminium went up in Q1 only to end up
with a substanal reducon in Q2, Q3 & Q4 of FY ’23. Tyre prices
went up by 2.5% in Q2 and 2% in Q3 resulng in 4.5% increase for full
year. There was no major movement in precious metal prices during
the year.
Through various internal iniaves covering price negoaon, value
engineering, turnover discounts and business share opmizaon, your
Company managed to secure a reducon of about 0.6% during the year.
Sta Costs: Sta costs went up by 25% during FY ’23 primarily due
to the long-term incenves, increments and promoons sanconed
to the execuves during the year. Increase also reects the higher
quantum of bonus provided in FY ’23. Your Company also entered in
to a selement of wages for associates across Hosur and Ennore plants
during FY ’22 the full year impact of which is in FY ’23.
Finance Costs was marginally lower by about 4% primarily due to beer
management of cash and working capital during the year. No fresh
long-term loans were availed during the year. Cash generated from the
business was used to repay the long term and short-term loans.
Depreciaon for the year is at ` 731.96 crores which is marginally
lower than last year.
Other expenses at ` 3250.43 crores is higher than last year by
45% reecng the increase in volume and acvity levels. All
expenses covering delivery charges, producon overheads, sales and
administraon overheads recorded increase over last year in line with
the volumes growth. Thanks to the Reset iniave driven across the
organisaon in FY ‘21, Administraon overheads connued to be at
low levels in FY 2022-23.
Total Capital Employed by your Company increased by about 11% from
` 20,334 crores in FY 2021-22 to ` 22,592 Crores in FY 2022-23.
Total shareholder’s funds as at March 31, 2023 stood at ` 8426 crores
reecng an increase of ` 1089 Crores primarily reecng the prot
for the year ` 1380 crores as reduced by dividend ` 294 Crores, other
comprehensive loss - ` 2 Crores and securies premium on allotment
of shares by exercising ESOP - ` 5 Crores.
Summary of the Balance sheet is given below:
` in Crores
Sources of Funds March 31,
2023
March 31,
2022
Inc /
(Dec) %
Shareholder’s funds 8,425.80 7,336.90 14.8
Non-Current liabilies 3,093.03 3,449.59 (10.3)
Current liabilies 11,061.93 9,535.51 16.0
Liabilies directly associated
with assets classied as held
for sale
10.87 11.78 (7.7)
Total 22,591.63 20,333.78 11.1
Applicaon of Funds
Fixed Assets 4,796.80 5,088.23 (5.7)
Right of use asset 236.98 296.58 (20.1)
Intangible Assets 1,402.89 1,410.36 (0.5)
Investments 3,892.18 3,521.58 10.5
Loans and other non-current
assets
559.16 509.89 9.7
Current assets 11,631.70 9,443.51 23.2
Assets classied as held for
sale
71.92 63.63 13.0
Total 22,591.63 20,333.78 11.1
Capital expenditure and investments
During the year, your Company incurred ` 488 Crores towards capital
expenditure predominantly towards:
a) Improving manufacturing capacity and capability covering Frame
side member, LCV and MHCV Engines and cab paint
b) Meeng OBD II norms for MHCV and LCV as per regulaon
c) new products covering Bada Dost, Project Vayu (CNG), and other
alternate fuel vehicles (H2 IC Engine, Fuel Cell, BEV), Mul Axle
Coach, Partner 9T to 11T, etc.,
d) Design, soware upgradaon, 33KV substaon, and advanced
engineering equipment
e) Unit replacement & maintenance capex for sustenance
During the year, Your Company has invested ` 16 Crores in Ashley
Aviaon, ` 4 Crores in Vishwa Bus and Coaches Limited. Thus, in all
your Company has invested ` 20 Crores in cash in subsidiaries during
the year.
During Feb ’23 amount owed by Switch Mobility Automove India Ltd
(SMAL) towards the Business Transfer Agreement consideraon with
accrued interest and working capital adjustments for ` 301 Crores was
converted into 8.5% Non-Cumulave, Non-Converble redeemable
preference shares of 3,01,00,000 shares of nominal and issue price of
` 100 each.
Annual Report 2022-23 57
ANNEXURE F TO THE BOARD’S REPORT
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Your Company has considered a fair value gain of its equity investment
in Hinduja Energy Limited for ` 65.67 Crores. There had also been
other fair value / impairment changes of ` 16 Crores (adverse) during
FY 2022-23.
Current assets as at March 31, 2023 were at ` 11,632 Crores when
compared to previous year level of ` 9,444 Crores. The increase of
` 2,188 Crores was due to increase in inventory by ` 699 Crores
(Finished goods inventory ` 497 Crores, raw material and components
` 157 Crores and stock in trade ` 45 crores) increase in investment in
mutual fund units ` 1473 Crores, increase in receivables ` 966 Crores;
decrease in bank balances, cash & cash equivalents ` 546 Crores
(mainly due to redempon of deposit of ` 500 Crores during the year),
decrease in other nancial assets ` 414 Crores (deposits reducon (net)
` 100 Crores, slump sale consideraon received ` 279 Crores), increase
in other current assets ` 10 crores.
Liquidity
Your Company could generate cash during the year primarily due to
beer prots. Internal accruals enabled your Company to meet capital
expenditure, dividend commitment, long term loan repayments as
well as working capital requirements. No fresh long-term loan was
borrowed during the year. Your Company manages its liquidity through
rigorous weekly monitoring of cash ows.
Details of signicant changes in key nancial raos:
Raos Formula used FY 2023 FY 2022
Debtors
turnover
Revenue from operaons
/ average debtors
10.10 7.32
Inventory
turnover
COGS / average inventory 11.48 7.95
Interest
coverage rao
Earnings before interest
and tax / interest expense
11.18 3.53
Current rao Current assets / current
liabilies
1.05 0.99
Debt equity
rao – Net
Net Debt / equity - 0.10
Operang prot
margin (%)
EBITDA / Revenue from
operaons
8.11 4.59
Net prot
margin (%)
PAT without exceponal
items / revenue from
operaons
3.58 0.14
Return on net
worth (%)
PAT without exceponal
items / total equity
15.4 0.4
The reason for change in raos by more than 25% is mainly due to
higher volumes and protability achieved during the year ended March
31, 2023 in comparison with year ended March 31, 2022.
Protability
Domesc MHCV volumes started improving gradually quarter on
quarter in FY 2022-23. Commodity costs primarily steel prices which
went up in Q1 started receding in subsequent quarters. Further your
Company could improve the price recovery on domesc MHCV and
LCV quarter on quarter consequent to concerted price increases
every quarter. Various iniaves covering product cost reducons,
value engineering, overhead cost reducon acons were iniated and
carried out during the year. Performance of other businesses covering
exports, spare parts and power soluons (engines) was also good and
supported your Company’s performance throughout the year. All these
augured well from the protability point of view. All the above acons,
enabled Your Company to post consistent improvement in operang
prot (EBITDA) quarter on quarter. The operang prot went up from
4.4% of net sale revenue in Q1 to 6.5% in Q2, to 8.8% in Q3 to 11.0%
in Q4 (Full year 8.1%).
The nancial rangs of long term and short-term facilies / commercial
paper as given by rang agencies viz., CARE and ICRA in FY ’23 are
given below. During Oct/Nov ’22 both the rang agencies have revised
the outlook from negave to Stable.
Agency Long Term Short Term Facilies /
Commercial Paper
CARE CARE AA; Stable Outlook CARE A1+
ICRA ICRA AA; Stable Outlook ICRA A1+
Your Company has serviced all its debt obligaons on me.
Results of Operaons
Your Company generated an aer-tax prot from operaons of
` 2563 Crores in FY 2022-23 which is higher than ` 1077 Crores in FY
2021-22. For the second consecuve year, in FY 2022-23, demand for
Medium and heavy commercial vehicles went up quarter on quarter
from 75,685 nos in Q1 to 117990 nos. in Q4. Consequently, working
capital requirement was higher at the end of the year to meet the
improvement in demand. Trade receivables and inventory went up by
` 968 Crores and ` 699 Crores respecvely. This is parally oset by
an increase in trade payables (` 295 Crores), non-current and current
nancial liabilies (` 338 Crores), Other current liabilies (` 227
Crores), other non-current and current provisions (` 361 Crores) and
others (` 20 Crores). All these have resulted in increase in working
capital by ` 426 Crores.
Cash oulow for acquision of xed assets for FY 2022-23 was at
` 488 crores as against ` 393 Crores last year reecng an increase
of about ` 95 Crores in FY 2022-23. ` 63 Crores proceeds have
been received by way of surrender of leasehold land in FY 2022-23.
FY 2022-23 indicates a net cash oulow of ` 1309 Crores represenng
` 1440 crores of investments in mutual fund units, purchase of non-
current investments (net) ` 13 Crores oset by net receipt of ₹ 100
Crores from deposits as well as interest receipts of ` 44 Crores during
the year. Cash oulow of ` 940 crores from nance acvies primarily
reect the repayment of non-current borrowings ` 376 Crores, interest
& other payments of ` 277 Crores, dividend payment of ` 294 Crores
oset by proceeds from current borrowings (net) ` 2 Crores and sale
of equity shares ` 5 Crores.
Dividend
The Directors have recommended a dividend of ` 2.60 per share per
equity share of Re. 1/- each for the nancial year ended Mar ’23.
Cash ow statement
` in Crores
Parculars 31.03.2023 31.03.2022
Prot from operaons aer tax 2562.55 1077.31
(Inc)/Dec in Net working capital (426.54) 1569.62
Net cash (oulow) / inow from
operang acvies
2136.01 2646.93
Payment for acquision of assets – net (488.35) (393.32)
Cash inow / (oulow) for invesng
acvies
(1246.18) (1065.59)
Cash inow (oulow) from nancing
acvies
(940.17) (723.76)
Net cash inow / (oulow) (538.69) 464.26
58 Ashok Leyland Limited
ANNEXURE F TO THE BOARD’S REPORT
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The year ahead
FY’23 has been a remarkable year for Ashok Leyland. Not only your
Company could signicantly increase its market share, it did so with an
acute focus on protability and cash generaon. FY23 performance has
been truly wholesome – as your Company grew its market share in all
major markets and also in all major product segments.
While inaon connued to aect every one of us during the year,
your Company was able to more than neutralize through beer price
realizaon. This was backed by excellent response to our new product
plaorms – specically AVTR in MHCV and Bada Dost in LCV segment.
Also, your Company’s consistent focus on expanding its network both
in MHCV and LCV businesses immensely helped in increase its market
penetraon.
Auto Expo held at New Delhi in January this year provided a great
opportunity to demonstrate the technological readiness for the future.
Your Company displayed a wide range of alternave fuel products
ranging from CNG and LNG, to Baery Electric, to Hydrogen ICE and
even FECV – across our LCV, ICV and MDV plaorms.
Going forward, your Company connue to remain opmisc about
CV Demand as well its ability to beat the industry growth. FY ’24 CV
demand is likely to surpass the previous peak of FY ’19. Your Company
believes that the CV industry in FY24 will grow by 8-10% over FY23,
supported by government infrastructure spending, strong replacement
demand and a healthy tracon from core industries like steel, cement
and mining.
Crisil expects shi in demand from ICVs due to the non-availability of
CNG related arbitraging opportunies, to medium duty commercial
vehicles (16.2T to 25.0T). This will aid the growth of 14% - 16% in the
Haulage segment. Vehicles with higher load carrying capacity are being
preferred by Large Fleet Operators (LFOs) which will drive the demand
for Mul Axle Vehicles (MAVs) which is set to grow by 16% - 18% in
FY ‘24. Demand for ppers is set to grow by 10-12% aided by increase
in construcon, infrastructure and mining acvies.
Bus sales is set to grow at a faster pace due to sharp increase in mobility
post the pandemic. Further growth is possible with enforcement of
scrappage policy as well as increasing urbanizaon and replacement of
JNNURM buses bought in FY 10-13.
Tonnage addion is expected to further improve due to a beer product
mix, that is trend of higher growth in MAV and tractor trailers demand.
Factors driving the long term MHCV sales will be a) improvement in
industrial acvity in the country, b) steady agricultural output and c)
the governments focus on infrastructure.
The soening of commodity prices, parcularly steel, has impacted the
margins posively. Your Company expect this trend to connue through
the current year, with an excepon of Q1 where some upward trend of
commodity prices is seen.
Your Company, even while growing market share has been raising
prices, is backed by beer acceptance of its AVTR product plaorm.
LCV - both Dost and Bada Dost – are gaining inroads and have been
growing stronger by the day. Both these products hold immense
potenal for exports and are a perfect t in our addressable markets.
Aer Market and power soluon business connue to perform well.
Your Company is also pung greater eorts in reducing costs – both
product costs as well as overheads. In fact, FY23 has been a record
year in eciency improvements. Many of the iniaves started last
year covering value engineering, waste reducon, digizaon of
manual processes, other overhead reducon etc., have yielded good
results and are connued in FY’24 with even a greater rigor.
Switch is very strategic to us and we are commied to develop Switch
as a global electric vehicle company. We have established a name and
a plaorm as a credible EV manufacturer. Our sales order pipeline is
robust. We are in the process of nalizing our plans to ulize growth
opportunies fully by placing high-quality cost-eecve products across
various customer segments. Switch is also expected to launch electric
versions of Dost and Bada Dost vehicles within this scal year.
Your Company is condent and extremely well posioned as a pure
play CV player with New gen products and talented people to reach
new heights in terms of volume and prots as the market demand
picks up.
H. HUMAN RESOURCES
During the year under review, the total number of people on the
rolls of the Company is 9,603.
Material developments in the Human Resource / Industrial
Relaons front have been detailed under the head “Human
Resource” in the Board’s Report.
Annual Report 2022-23 59
ANNEXURE G TO THE BOARD’S REPORT
CERTIFICATION BY MANAGING DIRECTOR AND CHIEF
EXECUTIVE OFFIER AND WHOLE TIME DIRECTOR AND
CHIEF FINANCIAL OFFICER TO THE BOARD
To
The Board of Directors,
Ashok Leyland Limited,
Chennai 600 032.
We, Shenu Agarwal, Managing Director and Chief Execuve Ocer and Gopal Mahadevan, Whole-me Director and Chief Financial ocer of
Ashok Leyland Limited cerfy that:
A. We have reviewed the Financial Statements and the Cash Flow Statement for the year and to the best of our knowledge and belief:
1. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be
misleading;
2. These statements present a true and fair view of the state of aairs of the Company and of the results of operaons and cash ows.
The Financial Statements have been prepared in conformity, in all material respects, with the exisng Generally Accepted Accounng
Principles including Accounng Standards, applicable laws and regulaons.
B. There are, to the best of our knowledge and belief, no transacons entered into by the Company during the year which are fraudulent,
illegal or violave of Company’s Code of Conduct.
C. We accept responsibility for establishing and maintaining internal controls for nancial reporng and that we have evaluated the eecveness
of internal control systems of the Company pertaining to nancial reporng and we have disclosed to the auditors and the Audit Commiee,
deciencies in the design or operaon of such internal controls, if any, of which we are aware and the steps we have taken or propose to
take to recfy these deciencies.
D. We have indicated to the Auditors and to the Audit Commiee:
1. That there are no signicant changes in internal control over nancial reporng during the year;
2. That there are no signicant changes in accounng policies during the year;
3. That there are no instances of signicant fraud of which we have become aware of and which involve management or other employees
who have signicant role in the company’s internal control system over nancial reporng.
Shenu Agarwal Gopal Mahadevan
Date : May 23, 2023
Place : Chennai
Managing Director and
Chief Execuve Ocer
Whole-me Director and
Chief Financial Ocer
60 Ashok Leyland Limited
To
The Members
ASHOK LEYLAND LIMITED
No. 1, Sardar Patel Road
Guindy, Chennai – 600 032
My report of even date is to be read along with this leer.
1. Maintenance of secretarial record is the responsibility of the management of the Company. My responsibility is to express an opinion on
these secretarial records based on my audit.
2. I have followed the audit pracces and processes as were appropriate, to obtain reasonable assurance about the correctness of the contents
of the secretarial records. The vericaon was done on test basis to ensure that correct facts are reected in secretarial records. I believe
that the processes and pracces we followed, provide a reasonable basis for our opinion.
3. I have not veried the correctness and appropriateness of nancial records and Books of Accounts of the Company.
4. Wherever required, I have obtained the Management representaon about the compliance of laws, rules and regulaons and happening of
events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulaons, standards is the responsibility of management.
My examinaon was limited to the vericaon of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the ecacy or eecveness with which
the management has conducted the aairs of the Company.
7. I further add due to the inherent limitaons of an audit including internal, nancial and operang controls, there is an unavoidable risk
that some mis-statements or material non-compliances may not be detected even though the audit is properly planned and performed in
accordance with the standards.
Signature:
Name of Company Secretary in Pracce : B.CHANDRA
Place : Chennai ACS No.: 20879
Date : 23 May 2023 C P No.: 7859
Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023
Pursuant to Secon 204(1) of the Companies Act, 2013 and rule No.9 of the Companies
(Appointment and Remuneraon of Managerial Personnel) Rules, 2014]
To
The Members,
ASHOK LEYLAND LIMITED,
No. 1, Sardar Patel Road,
Guindy, Chennai – 600 032
I have conducted the secretarial audit of the compliance of applicable
statutory provisions and the adherence to good corporate pracces
by ASHOK LEYLAND LIMITED bearing CIN L34101TN1948PLC000105
(hereinaer called the Company). Secretarial Audit was conducted
in a manner that provided me a reasonable basis for evaluang the
corporate conducts/statutory compliances and expressing my opinion
thereon.
Based on my vericaon of the Company’s books, papers, minute
books, forms and returns led and other records maintained by the
Company and also the informaon provided by the Company, its
ocers, agents and authorised representaves during the conduct of
secretarial audit, I hereby report that in my opinion, the Company has,
during the audit period covering the nancial year ended on March
31, 2023, complied with the statutory provisions listed hereunder and
also that the Company has proper Board processes and compliance-
mechanism in place to the extent, in the manner and subject to the
reporng made hereinaer:
I have examined the books, papers, minute books, forms and returns
led and other records maintained by the Company for the nancial
year ended on March 31, 2023, according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made there
under;
(ii) The Securies Contracts (Regulaon) Act, 1956 (‘SCRA’) and the
rules made there under;
(iii) The Depositories Act, 1996 and the Regulaons and Bye-laws
framed there under;
(iv) Foreign Exchange Management Act, 1999 and the rules and
regulaons made there under to the extent of Foreign Direct
Investment, Overseas Direct Investment and External Commercial
Borrowings;
(v) The following Regulaons and Guidelines prescribed under the
Securies and Exchange Board of India Act, 1992 (‘SEBI Act’):-
a. The Securies and Exchange Board of India (Substanal
Acquision of Shares and Takeovers) Regulaons, 2011;
b. The Securies and Exchange Board of India (Prohibion of
Insider Trading) Regulaons, 1992 and The Securies and
Exchange Board of India (Prohibion of Insider Trading)
Regulaons 2015;
ANNEXURE H TO THE BOARD’S REPORT
SECRETARIAL AUDIT REPORT
Annual Report 2022-23 61
ANNEXURE H TO THE BOARD’S REPORT
SECRETARIAL AUDIT REPORT
c. The Securies and Exchange Board of India (Lisng
Obligaons and Disclosure Requirements) Regulaons
2015;
d. Securies and Exchange Board of India (Share Based
Employee Benets) Regulaons, 2014
e. The Securies and Exchange Board of India (Issue and
Lisng of Debt securies) Regulaons 2018
(vi) I am informed that the Company, during the year, was not required
to comply with the following regulaons and consequently not
required to maintain any books, papers, minute books or other
records or le any forms/ returns under:
a. The Securies and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulaons, 2018
b. The Securies and Exchange Board of India (Buy back of
Securies) Regulaons, 2018;
c. Securies and Exchange Board of India (Issue and Lisng
of Non- Converble and Redeemable Preference Shares)
Regulaons, 2013
(vii) In addion to the compliance with Factory and Labour Laws as
are applicable to a factory, based on the study of the systems
and processes in place and a review of the reports of (1) the
heads of the Departments; (2) Occupier/Manager of the factories
located in Ennore, Sriperumbudur; Hosur (3 units), Bhandara,
Alwar, Pantnagar, Vellivoyalchavadi and Vijayawada which
manufacture Automobiles and Spare Parts; (3) the compliance
reports made by the funconal heads of various departments
which are submied to the Board of Directors of the Company;
(4) a test check on the licences and returns made available on
other applicable laws, I report that the Company has complied
with the provisions of the following industry specic statutes and
the rules made there under as well as other laws to the extent it
is applicable to them:
● Motor Vehicles Act, 1988
● The Motor Transport Workers Act, 1961
● The Explosive Act, 1884
● The Petroleum Act, 1934
● The Environment (Protecon) Act, 1986
● The Water( Prevenon and Control of Polluon) Act, 1974
● The Air (Prevenon and Control of Polluon) Act, 1981
I have also examined compliance with the applicable clauses of the
following:
(i) Secretarial Standards issued by The Instute of Company
Secretaries of India.
(ii) The Lisng Agreements entered into by the Company with BSE
Limited and Naonal Stock Exchange of India Limited.
During the period under review, the Company has, substanally,
complied with the provisions of the Act, Rules, Regulaons, Guidelines,
Standards, etc., menoned above.
I further report that
● The Board of Directors of the Company is duly constuted with
proper balance of Execuve Directors, Non-Execuve Directors
and Independent Directors. The changes in the composion of the
Board of Directors that took place during the period under review
were carried out in compliance with the provisions of the Act.
● Adequate noce is given to all the Directors to schedule the
Board Meengs, agenda and detailed notes on agenda were
sent at least seven days in advance, and a system exists for
seeking and obtaining further informaon and claricaons
on the agenda items before the meeng and for meaningful
parcipaon at the meeng.
● Based on the minutes made available to us, we report that
majority decision is carried through and that there were no
dissenng votes from any Board member that was required to
be captured and recorded as part of the minutes.
I further report that there are adequate systems and processes in the
Company commensurate with the size and operaons of the Company
to monitor, report deviaons to the Board, take correcve acons and
ensure compliance with applicable laws, rules, regulaons and guidelines.
I further report that during the year under review
a. Mr. Dheeraj G Hinduja was appointed as Execuve Chairman
(Whole Time) during 2021-22 and approval of Central
Government pursuant to provisions of Schedule V Secon I, Part
I of Companies Act 2013 has been received.
b. Mr. Shenu Agarwal was appointed as Managing Director
and CEO of the Company, with the approval of shareholders
w.e.f 8.12.2022.
c. The Company has alloed 6,00,000 Equity shares to an eligible
employee of the Company pursuant to exercise of opons granted
under the Ashok Leyland Employees Stock Opon Plan 2016.
d. The Board of Directors of the Material subsidiary Viz., Hinduja
Leyland Finance Limited had approved the Scheme of Merger
by Absorpon of Hinduja Leyland Finance Limited (“Transferor
Company”) into NXTDIGITAL Limited (“Transferee Company”)
and their respecve shareholders under Secons 230 to 232 and
other applicable provisions of the Companies Act, 2013 read with
rules framed thereunder (“Scheme”). The process of merger is
under progress.
e. The Company was alloed 3,01,00,000, 8.5% Non-Cumulave
Non-Converble Redeemable Preference Shares (NCRPS) of
` 100/-each aggregang to ` 301 Crores by Switch Mobility
Automove Limited during the year in lieu of the consideraon
and dues payable on account of the transfer of EV business to
Switch Mobility Automove Limited on a slump sale basis in FY
2021-22.
Signature:
Name of Company Secretary in Pracce : B.CHANDRA
ACS No.: 20879 C P No.: 7859
Place : Chennai PEER REVIEW Cercate No 602/2019
Date : 23 May 2023 UDIN: A020879E000355611
62 Ashok Leyland Limited
ANNEXURE I TO THE BOARD’S REPORT
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2023
[Pursuant to Secon 204(1) of the Companies Act, 2013 and rule No.9 of the Companies
(Appointment and Remuneraon of Managerial Personnel) Rules, 2014]
To
The Members,
M/s. Hinduja Leyland Finance Limited
CIN# U65993MH2008PLC384221
Hinduja House, 171, Dr. Annie Besant Road,
Worli, Mumbai,
Maharashtra 400018
We have conducted the secretarial audit of the compliance of
applicable statutory provisions and the adherence to good corporate
pracces by M/s. Hinduja Leyland Finance Limited (hereinaer called
the company). Secretarial Audit was conducted in a manner that
provided me a reasonable basis for evaluang the corporate conducts/
statutory compliances and expressing my opinion thereon.
Based on our vericaon of the books, papers, minute books, forms
and returns led and other records maintained by the company and
also the informaon, explanaons and claricaons provided by the
Company, its ocers, agents and authorized representaves during
the conduct of secretarial audit, we hereby report that in our opinion,
the company has, during the audit period covering the nancial
ended 31
st
March, 2023 complied with the statutory provisions listed
hereunder and also that the Company has proper Board-processes
and compliance-mechanism in place to the extent, in the manner and
subject to the reporng made hereinaer:
We have examined the books, papers, minute books, forms and returns
led and other records maintained by M/s. Hinduja Leyland Finance
Limited for the nancial year ended on 31
st
March, 2023 according to
the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securies Contracts (Regulaon) Act, 1956 (‘SCRA’) and the
rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulaons and Bye-laws
framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and
regulaons made thereunder to the extent of Foreign Direct
Investment, Overseas Direct Investment and External Commercial
Borrowings;
(v) SEBI (Issue and Lisng of Non-Converble Securies) Regulaons
2021.
(vi) SEBI (Lisng Obligaons and Disclosure Requirements)
Regulaons, 2015 (‘SEBI LODR’) to the extent applicable.
(vii) Securies and Exchange Board of India (Prohibion of Insider
Trading) Regulaons, 2015
(viii) Reserve Bank of India Act, 1934 read with applicable Rules and
Regulaons relang to the:
(a) Master Direcon - Non-Banking Financial Company -
Systemically Important Non-Deposit taking Company and
Deposit taking Company (Reserve Bank) Direcons, 2016.
(b) Master Direcon- Non-Banking Financial Company Returns
(Reserve Bank) Direcons, 2016.
(c) Scale Based Regulaon (SBR): A Revised Regulatory
Framework for NBFC’s dated 22nd October, 2021 and
various Directors / Guidelines issued thereunder.
We have also examined compliance with the applicable clauses of the
Secretarial Standards issued by The Instute of Company Secretaries
of India.
During the period under review the Company has complied with the
provisions of the Act, Rules, Regulaons, Guidelines, Standards, etc.
menoned above.
We report that
The Board of Directors of the Company is duly constuted with
proper balance of Execuve Directors, Non-Execuve Directors and
Independent Directors. The changes in the composion of the Board of
Directors that took place during the period under review were carried
out in compliance with the provisions of the Act.
Adequate noce is given to all directors before schedule of the Board/
Commiee Meengs, agenda and detailed notes on agenda were sent
at least seven days in advance and a system exists for seeking and
obtaining further informaon and claricaons on the agenda items
before the meeng and for meaningful parcipaon at the meeng.
Notes on agenda which are circulated less than the specied period,
the necessary compliances under the Act and Secretarial Standards on
Board meeng are complied with.
During the year under review, directors have also parcipated in
the board / commiees’ meengs through video conferencing, such
meengs were properly convened and recorded in compliance with
the provisions of Secon 173(2) of the Companies Act read with Rule
3 & 4 of the Companies (Meengs of Board and its Powers) Rules,
2014. All decisions in the Board meengs are approved by Directors
unanimously and recorded as part of the minutes.
We further report that there are adequate systems and processes
in the company commensurate with the size and operaons of the
company to monitor and ensure compliance with applicable laws,
rules, regulaons and guidelines.
We further report that during the audit period under review;
1) The Company at the meeng of the shareholders held on 2nd
March, 2022 approved the amendment to Clause II of the
Memorandum of Associaon of the Company and shiing of
Registered oce from State of Tamil Nadu to Maharashtra. The
Company received an order dated 13th May, 2022 passed by
Regional Director, Southern Region, Ministry of Corporate Aairs,
Chennai granng approval for the same.
The Board took a note of the above said order on 17th May,
2022 and passed the resoluon for shiing of registered oce
of the Company to Mumbai.
2) Pursuant to the provisions of Secons 230 to 232 and other
applicable provisions if any of the Companies Act, 2013 read with
applicable rules made thereunder, the Board of Directors at their
meeng held on 25th November, 2022 accorded its approval for
the dra Scheme of Merger of Hinduja Leyland Finance Limited
with M/s. NXTDIGITAL Limited, which is subject to the consent
/ approval of the shareholders, Naonal Company Law Tribunal
and such other regulatory authories as may be applicable.
3) The company issued and alloed 1,27,000 equity shares of ` 10/-
each to its Equity Shareholders under Employee Stock Opons
Plan of the Company as detailed below:
S.
No.
Date of
Allotment
Face Value Per
Share (in `)
Premium
(in `)
Number of
Equity shares
1 27.07.2022 10 44.40 4,000
2 18.11.2022 10 100.00 1,00,000
10 44.40 21,000
3 09.02.2023 10 44.40 2,000
TOTAL 1,27,000
Annual Report 2022-23 63
ANNEXURE I TO THE BOARD’S REPORT
4) The company issued and alloed 6,50,00,000 equity shares of
` 10/- each at a Premium of ` 130/- each aggregang ` 910
Crores on a Preferenal basis to Qualied Instuonal Buyers on
13th October, 2022.
5) The Company issued and alloed 8,000 Secured Redeemable
Non-Converble Debentures of ` 1,00,000/- each aggregang
` 80 Crores. The Company redeemed the Redeemable Non-
Converble Debentures on various dates.
6) The Company transferred an amount of ` 5,07,70,758/-
remaining unspent relang to ongoing projects to a separate
bank account on 28th April, 2023, as required under Secon 135
of the Companies Act, 2013 read with the Companies (Corporate
Social Responsibility Policy) Rules, 2014.
7) Mr. Kishore Kumar Lodha Chief Financial Ocer of the Company
resigned on 8th September, 2022.
8) On the recommendaon of Nominaon and Remuneraon
commiee, the Board of Directors at their meeng held on 19th
September, 2022 approved the appointment of Mr. Vikas Jain
as Chief Financial ocer of the Company with eect from 9th
September, 2022.
9) The Board of Directors at their meeng held on 21st March,
2023 appointed Dr. Mandeep Maitra (DIN 06937451) as
Addional Director in the category of an Independent Director
for a period of ve years with eect from 21st March, 2023. The
said appointment was approved by the Shareholders at their
Extra-ordinary General meeng held on 28th April, 2023.
10) Ms. Bhumika Batra (DIN 03502004) an Independent Director of
the Company resigned from the Board with eect from 27th
February, 2023. Consequent to her resignaon, the Corporate
Social Responsibility Commiee was re-constuted on 10th May
2023 by inducng Dr. Mandeep Maitra Independent Director
in compliance of Secon 135 of the Companies Act, 2013.
With respect to the Nominaon and Remuneraon commiee,
we were informed that the company had reconstuted the
commiee in line with the Regulaon 19 of SEBI LODR at the
Board meeng held on 18th May, 2023.
11) Mr. S. Nagarajan (DIN 00009236) Execuve Vice Chairman of the
company rered on 31st March, 2023 on compleon of tenure
of his oce.
12) Pursuant to the RBI Guidelines for Appointment of Statutory
Central Auditors (SCAs)/Statutory Auditors (SAs) of Commercial
Banks (excluding RRBs), UCBs and NBFCs (including HFCs) dated
27th April, 2021, the shareholders at their Annual General
Meeng held on 19th September, 2022 appointed M/s. Walker
Chandiok & Co LLP, Chartered Accountants (Firm Registraon
No. 001076N/N500013) as the Joint Statutory Auditors of the
Company for a period of three years and M/s. Suresh Surana
& Associates LLP, Chartered Accountants (Firm Registraon No.
121750W/W100010) as Joint Statutory Auditors of the Company
for a period of two years.
For M/s. G Ramachandran & Associates
Company Secretaries
G. RAMACHANDRAN
Proprietor
FCS No.9687 CoP. No.3056
Place : Chennai PR No.: 2968/2023
Date : 18
th
May, 2023 UDIN: F009687E000302067
This Report is to be read with our leer of even date which is annexed
as Annexure A and forms an integral part of this report.
ANNEXURE-A SECRETARIAL AUDIT REPORT OF EVEN DATE
To
The Members,
Hinduja Leyland Finance Limited
CIN# U65993MH2008PLC384221
Hinduja House, 171, Dr. Annie Besant Road,
Worli, Mumbai,
Maharashtra 400018
Our Report of even date is to be read along with this leer.
1. Maintenance of Secretarial record is the responsibility of the
management of the company. Our responsibility is to express an
opinion on these secretarial records based on our audit.
2. We have followed the audit pracces and processes as were
appropriate to obtain reasonable assurance about the correctness
of the contents of the secretarial records. The vericaon was
done on test basis to ensure that correct facts are reected in
secretarial records. We believe that the processes and pracces,
we followed provide a reasonable basis for our opinion.
3. We have not veried the correctness and appropriateness of
nancial records and books of accounts of the Company.
4. Wherever required, we have obtained the Management
representaon about the compliance of laws, rules and
regulaons and happening of events etc.
5. The compliance of the provisions of corporate and other
applicable laws, rules, regulaons, standards is the responsibility
of management. Our examinaon was limited to the vericaon
of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the
future viability of the Company nor of the ecacy or eecveness
with which the management has conducted the aairs of the
Company.
For M/s. G Ramachandran & Associates
Company Secretaries
G. RAMACHANDRAN
Proprietor
FCS No.9687 CoP. No.3056
Place : Chennai PR No.: 2968/2023
Date : 18
th
May, 2023 UDIN: F009687E000302067
64 Ashok Leyland Limited
1. Brief outline on CSR Policy of the Company:
The Company has always been in the forefront of providing a dedicated approach to social development through various Corporate Social
Responsibility iniaves. Recognizing the need and the tremendous opportunity to transform the lives, the Company is commied to work
on intervenons that lead to sustainable development of the society in areas which are of importance at a naonal level. The projects
undertaken by the Company are within the broad framework of Schedule VII of the Companies Act, 2013 and as per the Company’s CSR
Policy. The Company’s CSR policy has been uploaded in the website of the Company at hps://www.ashokleyland.com/in/en/community/
csr-policy.
2. Composion of CSR Commiee:
Sl.
No.
Name of Director Nature of Directorship / Designaon Number of meengs
of CSR Commiee
held during the year
Number of meengs
of CSR Commiee
aended during the
year
1. Mr. Dheeraj G Hinduja Execuve Chairman / Chairman of the CSR Commiee 2 2
2. Ms. Manisha Girotra Independent Director / Member of the CSR Commiee 2 2
3. Mr. Sanjay K Asher Independent Director / Member of the CSR Commiee 2 2
4. Mr. Shenu Agarwal* Managing Director & Chief Execuve Ocer /
Member of the CSR Commiee
- -
*Appointed as a Member with eect from February 1, 2023.
3. Web-link(s) where Composion of CSR Commiee, CSR Policy and CSR Projects approved by the Board are disclosed on the website of the
Company: hps://www.ashokleyland.com/in/en/community
4. Execuve summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3) of rule 8, if
applicable.: During the FY 2021-22, the Company had contributed an amount of ` 2.02 Crores to M/s. Hinduja Foundaon towards Diabec
Research and Water projects. The impact assessment study for this project has commenced in April 2023 and is expected to be completed
during the FY 2023-24. Hence, a summary of the impact assessment study report will be provided in the Annual Report for the FY 2023-24.
5. (a) Average net prot of the Company as per sub-secon (5) of Secon 135: ` 5.50 Crores
(b) Two percent of average net prot of the Company as per sub-secon (5) of Secon 135: ` 0.11 Crores
(c) Surplus arising out of the CSR Projects or programmes or acvies of the previous nancial years: Nil
(d) Amount required to be set-o for the nancial year, if any: Nil
(e) Total CSR obligaon for the nancial year [(b)+(c)-(d)]: ` 0.11 Crores
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project): ` 14.40 Crores*
(b) Amount spent in Administrave overheads: ` 0.76 Crores
(c) Amount spent on Impact Assessment, if applicable: Nil
(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: ` 15.16 Crores
*During the FY 2022-23, for the Road to School project, the Implemenng Agency has ulised an amount of ` 0.85 Crores which was yet to
be disbursed by the Company as at end of the year and hence the Company has recognised the CSR spend based on actual fund disbursed.
(e) CSR amount spent or unspent for the Financial Year:
Total Amount
Spent for the
Financial Year
(in ` Crores)
Amount Unspent (in ` Crores)
Total Amount transferred to Unspent
CSR Account as per subsecon (6) of
Secon 135.
Amount transferred to any fund specied under Schedule VII
as per second proviso to sub-secon (5) of Secon 135.
Amount Date of transfer Name of the Fund Amount Date of transfer
15.16 Nil Nil Nil Nil Nil
ANNEXURE J TO THE BOARD’S REPORT
ANNUAL REPORT ON CSR ACTIVITIES FOR THE FY 2022-23
Annual Report 2022-23 65
ANNEXURE J TO THE BOARD’S REPORT
ANNUAL REPORT ON CSR ACTIVITIES FOR THE FY 2022-23
(f) Excess amount for set-o, if any:
Sl.
No.
Parculars Amount
(in ` Crores)
(i) Two percent of average net prot of the Company as per sub-secon (5) of Secon 135 0.11
(ii) Total amount spent for the nancial year 15.16
(iii) Excess amount spent for the nancial year [(ii)-(i)] 15.05
(iv) Surplus arising out of the CSR projects or programmes or acvies of the previous nancial years, if any Nil
(v) Amount available for set o in succeeding nancial years [(iii)-(iv)] 15.05
7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:
1 2 3 4 5 6 7 8
Sl.
No.
Preceding
Financial
Year(s)
Amount
transferred
to Unspent
CSR Account
under sub-
secon (6) of
Secon 135
(in `)
Balance
Amount in
Unspent
CSR Account
under sub-
secon (6) of
Secon 135
(in `)
Amount
Spent in the
Financial Year
(in `)
Amount transferred to a Fund
as specied under Schedule
VII as per second proviso to
sub-secon (5) of Secon
135, if any
Amount
remaining to
be spent in
succeeding
Financial
Years (in `)
Deciency,
if any
Amount
(in ` Crores)
Date of
transfer
1. FY 2019-20 - - - - -
2. FY 2020-21 15.51 9.59 5.30 0.17 20.09.2021 4.29 -
3. FY 2021-22 0.32 0.32 0.32 0.09 20.09.2022 - -
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year: No
If Yes, enter the number of Capital assets created/ acquired: Not applicable
Details relang to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year: Not
applicable
Sl.
No.
Short parculars of the
property or asset(s) [including
complete address and
locaon of the property]
Pin code
of the
property or
asset(s)
Date of
creaon
Amount
of CSR
amount
spent
Details of enty/ Authority / beneciary
of the registered owner
CSR Registraon
Number, if
applicable
Name Registered
address
Not applicable
9. Specify the reason(s), if the company has failed to spend two per cent of the average net prot as per sub-secon (5) of Secon 135: Not
applicable
Dheeraj G Hinduja Shenu Agarwal
May 23, 2023
Chennai
Execuve Chairman and
Chairman of CSR Commiee
Managing Director &
Chief Execuve Ocer
66 Ashok Leyland Limited
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
SECTION A: GENERAL DISCLOSURES
I. Details of the listed enty
1 Corporate Identy
Number (CIN) of the
Company
L34101TN1948PLC000105
2 Name of the
Company
Ashok Leyland Limited
3 Year of incorporaon 1948
4 Registered oce
address
No. 1, Sardar Patel Road, Guindy,
Chennai – 600 032
5 Corporate address No. 1, Sardar Patel Road, Guindy,
Chennai – 600 032
7 Telephone 044 – 2220 6000
8 Website www.ashokleyland.com
9 Financial year for
which reporng is
being done
April 1, 2022 to March 31, 2023
10 Name of the Stock
Exchange(s) where
shares are listed
BSE Ltd and Naonal Stock Exchange
of India Limited
11 Paid-up Capital ` 293.61 Crores
12 Name and contact
details (telephone,
email address) of the
person who may be
contacted in case of
any queries on the
BRSR report
Mr. Alok Verma
Head Corporate Strategy & ESG
Telephone: 044 – 2220 6081
Email: Alok.Verma@ashokleyland.com
13 Reporng boundary Standalone
II. Products/services
14. Details of business acvies (accounng for 90% of the turnover):
S.
No.
Descripon of Main
Acvity
Descripon
of
Business
Acvity
% of
Turnover
of the
enty
1 Manufacture and sale of Medium
and Heavy Commercial Vehicles
Automobile
Manufacturing
75.8
2 Manufacture and sale of Light
Commercial Vehicles
Automobile
Manufacturing
12.0
3 Sale of Power Soluon Systems Automobile
Manufacturing
1.8
15. Products/Services sold by the enty (accounng for 90% of the
enty’s Turnover):
S.
No.
Product/Service NIC Code % of total
Turnover
contributed
1 Trucks (M&HCV) Medium & Heavy
Commercial Vehicles
29102 67.2
2 Bus (M&HCV) Medium & Heavy
Commercial Vehicles
29109 8.6
3 LCV – Light Commercial Vehicles 29104 12.0
III. Operaons
16. Number of locaons where plants and/or operaons/oces of
the enty are situated:
Locaon Number of
plants
Number of
oces
Total
Naonal 10 1 11
Internaonal 0 0 0
17. Markets served by the enty:
a. Number of locaons
Locaons Number
Naonal (No. of States) Pan-India
Internaonal (No. of Countries) 38
*The number of internaonal countries served by Ashok Leyland is for
vehicles exported to its aliates in the respecve countries.
b. What is the contribuon of exports as a percentage of the total
turnover of the enty? –
The Company’s contribuon to exports is 5.16% of its total
turnover.
c. A brief on types of customers
Ashok Leyland (AL) is India’s second-largest medium and heavy
commercial vehicle manufacturer. The Company manufactures
and sells its product in light, medium, and heavy commercial
vehicle segments which are used for the transportaon of goods
as well as people. Therefore, the Company caters to a variety of
customer bases in the market both in India and abroad based on
dierent categories such as eet size, type of vehicles, purchase
type, use of government/private, etc. The customers of AL cuts
across all geographies of India and Abroad. AL has delivered more
than 2 million vehicles to customers in the last two decades. This
reects the respect that the customers bestowed upon AL for its
products and services. The Company sells its products catering
to the needs of goods carriers, passenger transportaon, power
soluons, agricultural engines, industrial engines, and Defence.
IV. Employees
18. Details as at the end of Financial Year:
a. Employees and workers (including dierently abled):
S.
No.
Parculars Total
(A)
Male Female
No.
(B)
% (B /
A)
No.
(C)
% (C /
A)
EMPLOYEES
1. Permanent (D) 4,782 4,511 94% 271 6%
2. Other than
Permanent (E)
0 0 0 0 0
3. Total employees
(D + E)
4,782 4,511 94% 271 6%
WORKERS
4. Permanent (F) 4,821 4,777 99% 44 1%
5. Other than
Permanent (G)*
18,111 17,579 97% 532 3%
6. Total workers
(F + G)
22,932 22,356 97% 576 3%
Annual Report 2022-23 67
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
b. Dierently abled Employees and workers:
S.
No
Parculars Total (A) Male Female
No. (B) % (B / A) No. (C) % (C / A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 13 13 100% 0 0
2. Other than Permanent (E) 0 0 0 0 0
3. Total dierently abled employees (D + E) 13 13 100% 0 0
DIFFERENTLY ABLED WORKERS
4. Permanent (F) 63 63 100% 0 0
5. Other than permanent (G) 0 0 0 0 0
6. Total dierently abled workers (F + G) 63 63 100% 0 0
19. Parcipaon/Inclusion/Representaon of women
Total (A) No. and percentage of Females
No. (B) % (B / A)
Board of Directors 11 1 9.09%
Key Management Personnel 3* 0 0
*In terms of Secon 203 of the Companies Act, 2013
20 Turnover rate for permanent employees and workers
(Disclose trends for the past 3 years)
FY 2022-23 FY 2021-22 FY 2020-21
Male Female Total Male Female Total Male Female Total
Permanent Employees 5.16% 11.51% 5.53% 6.06% 11.96% 6.43% 5.87% 7.09% 5.95%
Permanent Workers 9.78% 4.94% 9.66% 6.8% 0 6.8% 4.07% 0 4.07%
V. Holding, Subsidiary and Associate Companies (including joint ventures)
21. (a) Names of holding / subsidiary / associate companies / joint ventures
Sl.
No
Name of the Holding / Subsidiary / Associate companies /
Joint Ventures as at March 31, 2023 (A)
Indicate whether Holding / Subsidiary /
Associate/ Joint Venture
% of shares
held by listed enty
(directly and through
subsidiaries)
1 Hinduja Automove Limited, U.K. Holding 50.87
2 Albonair GmbH, Germany Wholly owned subsidiary 100
3 Albonair(Taicang) Automove Technology Co., Ltd, China Wholly owned subsidiary (Step down) 100
4 Albonair (India) Private Limited Wholly owned subsidiary 100
5 Ashok Leyland Nigeria Limited Wholly owned subsidiary 100
6 Ashok Leyland (Chile), S.A. Wholly owned subsidiary 100
7 Gulf Ashley Motor Limited Subsidiary 93.15
8 Optare Plc., U.K. Subsidiary 91.63
9 Optare UK Limited Subsidiary (Step down) 91.63
10 Switch Mobility Limited, UK (formerly Optare Group Limited) Subsidiary (Step down) 90.18
11 Switch Mobility Automove Limited Subsidiary (Step down) 90.18
12 OHM Internaonal Mobility Limited Subsidiary (Step down) 72.15
13 OHM Global Mobility Private Limited Subsidiary (Step down) 72.15
14 Optare Australia Pty Limited Subsidiary (Step down) 90.18
15 Switch Mobility Europe S.l., Spain Subsidiary (Step down) 90.18
16 Global TVS Bus Body Builders Limited Subsidiary 66.67
17 Hinduja Tech Limited Subsidiary 73.83
18 Hinduja Tech GmbH, Germany Subsidiary (Step down) 73.83
19 Hinduja Tech Inc., USA Subsidiary (Step down) 73.83
20 Hinduja Tech (Shanghai) Co., Limited Subsidiary (Step down) 73.83
21 Hinduja Tech Canada Inc., Canada Subsidiary (Step down) 73.83
22 Drive System Design Limited, UK Subsidiary (Step down) 73.83
23 Drive System Design Inc., USA Subsidiary (Step down) 73.83
24 Drive System Design s.r.o., Czech Subsidiary (Step down) 73.83
25 Hinduja Tech Limited, U.K. Subsidiary (Step down) 73.83
26 Hinduja Leyland Finance Limited Subsidiary 60.42
68 Ashok Leyland Limited
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
Sl.
No
Name of the Holding / Subsidiary / Associate companies /
Joint Ventures as at March 31, 2023 (A)
Indicate whether Holding / Subsidiary /
Associate/ Joint Venture
% of shares
held by listed enty
(directly and through
subsidiaries)
27 Hinduja Housing Finance Limited Subsidiary (Step down) 60.42
28 Hinduja Insurance Broking and Advisory Services Limited (under
liquidaon)
Subsidiary (Step down) 60.42
29 Gaadi Mandi Digital Plaorms Limited Subsidiary (Step down) 60.42
30 HLF Services Limited Subsidiary 81.73
31 Ashley Aviaon Limited Wholly owned subsidiary 100.00
32 Ashok Leyland (UAE) LLC (including shareholding held in benecial
posion)
Subsidiary 100.00
33 Mangalam Retail Services Limited Associate 37.48
34 Lanka Ashok Leyland PLC Associate 27.85
35 LLC Ashok Leyland Russia Subsidiary (Step down) 100
36 Ashok Leyland West Africa SA Subsidiary (Step down) 100
37 Ashok Leyland Defence Systems Limited Associate 48.49
38 Rajalakshmi Wind Energy Limited Associate (under Companies Act, 2013) 26.00
39 Ashley Alteams India Limited Joint Venture 50.00
40 Ashok Leyland John Deere Construcon Equipment Company Private
Limited (Under liquidaon process)
Joint Venture 4.85
41 Vishwa Buses and Coaches Limited Wholly owned subsidiary 100.00
42 Gro Digital Plaorms Limited Subsidiary 80.21
43 Prathama Solar Connect Energy Private Limited Associate (under Companies Act, 2013) 26.00
44 HR Vaigai Private Limited Associate (under Companies Act, 2013) 26.00
45 ZeBeyond Limited, U.K. Joint Venture of Subsidiary 36.91
Does the enty indicated at column A, parcipate in the Business Responsibility iniaves of the listed enty? (Yes/No)
Subsidiaries / Associates / Joint Ventures have their own business responsibility iniaves. However, there are instances where joint iniaves
have been carried out.
VI. CSR Details
22. (i) Whether CSR is applicable as per Secon 135 of the Companies Act, 2013: Yes
(ii) Revenue from operaons (in `): INR 36,144 Crores
(iii) Net worth (in `): INR 8,426 Crores
VII. Transparency and Disclosures Compliances
23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the Naonal Guidelines on Responsible Business Conduct:
Stakeholder group from
whom complaint is
received
Grievance
Redressal
Mechanism in
Place (Yes/No)
(If yes, then
provide web-link
for grievance
redress policy)
FY 2022-23
Current Financial Year
FY 2021-22
Previous Financial Year
Remarks
Number of
complaints
led during
the year
Number of
complaints
pending
resoluon
at close of
the year
Remarks Number of
complaints
led during
the year
Number of
complaints
pending
resoluon
at close of
the year
Local Communies No 0 0 - 0 0 -
Shareholders Yes 13 0 - 20 0 -
Employees and workers Yes 19 0 - 73 7 Long term policy change
Customers Yes 1041 179 - 780 96 Reach us and secretarial
Or directly to MD
AL India ocial twier
account
*The policies guiding Ashok Leyland Limited’s conduct with all its stakeholders are available on the Company’s website. The link to the policies is
available at: hps://www.ashokleyland.com/in/en/investors/investor-informaon/policies
Annual Report 2022-23 69
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
24. Overview of the enty’s material responsible business conduct issues
Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social maers that present a
risk or an opportunity to your business, raonale for idenfying the same, and approach to adapt or migate the risk along with its nancial
implicaons, as per the following format
S.
No.
Material issue
idened
Indicate
whether risk
or opportunity
(R/O)
The raonale for idenfying
the risk/opportunity
In case of risk, an approach to
adapt or migate
Financial implicaons of
the risk or opportunity
1 Product Safety,
Quality, and
Innovaon
Opportunity Leveraging innovaon to
ensure all products of the
Company are safe and match
the desired quality standards
contributes to enhanced
brand value and customer
trust
- Reduced product
recalls
2 Customer
Relaonships
and
Sasfacon
Risk Failing to oer products
and services that sasfy
customer’s expectaons may
result in lengthy and costly
ligaon, diminished trust
with customers, and lower
sales
- Providing transparent informaon and fair
advice on the Company’s products and
services to its customers
- Improving relaonships held with
customers and the manner in which the
Company caters to the needs/preferences
of the customer base, through iniaves
and plaorms such as PRISM 2.0, LEAD,
SELECT, and i-alert.
- With the help of a robust aersales
service which includes mediums such as
a 24x7 call center toll-free no, website,
social media, etc., the Company can
pay aenon to customers. A dedicated
complaint management system is also in
place to help monitor as well as facilitate
swi resoluon of customer complaints
- Lower revenue
- Financial obligaon
due to ligaon
3 Business
Growth and
Protability
Risk Inability to absorb losses
owing to unforeseen
conngencies
and sudden external
shocks can lead to dire
consequences
impacng the viability of the
business
Implemenng sound ESG policies, systems
and processes to build a sustainable
business model that can weather
disturbances
- Financial losses
- Depleon of reserves
4 Regulatory
Compliance
Risk Violang regulatory
compliance oen results in
legal punishment, including
nes and penales
- Creang a strong ethical organisaonal
culture with a focus on transparency and
compliance
- Regularly carrying out risk assessments
to idenfy areas of potenal exposure to
compliance-related risks
- Fines and Penales
5 Road and
Occupaonal
Safety
Opportunity Adopng health and
wellbeing measures may
lead to enhanced employee
producvity in turn reducing
the employee
arion rate. Road safety
awareness programmes
enable the
community and drivers to
follow the safety rules.
- Lower talent
acquision costs
- Lower injury rate
70 Ashok Leyland Limited
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
S.
No.
Material issue
idened
Indicate
whether risk
or opportunity
(R/O)
The raonale for idenfying
the risk/opportunity
In case of risk, an approach to
adapt or migate
Financial implicaons of
the risk or opportunity
6 Inclusive
growth with
community
development
Opportunity Ensuring goodwill with
local, and marginalised
communies through the
community development
programmes that can validate
the Company’s social license
to operate
Increase in revenue
share from socially
conscious customers
7 Sustainable
supply chain
and sourcing
Opportunity Ensuring a green, local, and
socially sound supply chain
can contribute to stability
and diversity while also
creang local employment
- Lower raw material
procurement cost
- Reducon in
transportaon costs
8 Recruitment
and talent
retenon
Opportunity Iniang employee benet
plans, oering compeve
pay packages, and focusing
on a diverse workforce can
help retain the right talent
and bring about a diverse
perspecve during the
decision-making process
Reduced recruitment
cost
9 Grievance
Mechanism
Opportunity Establishing a robust
grievance redressal
mechanism ensures
compliance with rules and
regulaons, therefore,
building the trust of the
customers, investors, and
employees
- Legal nes and
penales
- Dissoluon of business
10 Cybersecurity Risk Lack of adequate data
security and privacy systems
can lead to economic losses,
reputaonal losses, and loss
of customer condence in
the Company
- Implemenng sound informaon
security systems and policies to manage
customers’ sensive data.
- The Company has an Informaon
Security/Cybersecurity policy in place
that is available to all employees in the
organisaon.
- Regulatory ne and
penalty
- Legal fees in case of
customer lawsuits
- Loss of customers
11 Resource
opmisaon
and
operaonal
eco-eciency
Opportunity With an aim to opmise
resource ulisaon, the
Company can not only
improve its operaonal
eciency but also aract
environmentally conscious
customers
- Lower Operaonal Cost
- Increase in revenue
share from
environmentally
conscious customers
12 Human Rights Risk Non-adherence to human
rights principles may lead
to reputaonal damage and
penales
Ensuring compliance with internaonal and
naonal human rights standards within the
organisaon and its value chain
- Regulatory ne and
penalty
- Reduced access to
capital from socially
conscious investors
- Reduced costs relang
to talent acquision
13 An-bribery
and corrupon
Risk The Company can be exposed
to legal nes, penales,
damaged reputaon, business
disrupon, and erosion of
trust in the case of non-
adherence to ethical business
pracces
- Implemenng internal controls to
strengthen compliance with applicable
laws
- Devising a plan to conduct awareness
programmes and training for internal
stakeholders on ethical pracces
- Instung an eecve whistle-blower and
grievance redressal mechanism
- Legal nes and
penales
- Dissoluon of business
Annual Report 2022-23 71
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
S.
No.
Material issue
idened
Indicate
whether risk
or opportunity
(R/O)
The raonale for idenfying
the risk/opportunity
In case of risk, an approach to
adapt or migate
Financial implicaons of
the risk or opportunity
14 Training and
Educaon
Opportunity Ensuring opportunies are
provided to employees that
can upgrade their skills and
aain the qualicaons
required in order to achieve
career progression resulng
in a higher employee
retenon rate
Reduced costs relang to
talent acquision
15 Labour
Management
Relaonship
Risk Promong freedom of
associaon and collecve
bargaining agreements for
its workers and employees
resulng in employee and
worker sasfacon
- Supporng employees and workers to be
a part of independent unions
- Iniang engagements with union
leaders to promote worker and employee
wellness
Reduced costs relang to
talent acquision
16 An-
compeve
pracces
Risk The Company can be exposed
to legal nes, penales,
damaged reputaon, business
disrupon, and erosion of
trust in the case of non-
adherence to ethical business
pracces
- Implemenng internal controls to
strengthen compliance with applicable
laws
- Devising a plan to conduct awareness
programmes and training to internal
stakeholders on ethical pracces
- Instung an eecve whistle-blower and
grievance redressal
- Legal nes and
penales
- Dissoluon of business
SECTION B: MANAGEMENT AND PROCESS DISCLOSURES
This secon is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopng the NGRBC Principles
and Core Elements.
Disclosure Quesons P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and Management Processes
1 a. Whether your enty’s policy/policies cover each principle and its
core elements of the NGRBCs. (Yes/No)
Y Y Y Y Y Y Y Y Y
b. Has the policy been approved by the Board? (Yes/No) Y Y Y Y Y Y Y Y Y
c. Web Link of the Policies, if available Policies are uploaded on the website of the Company at
www.ashokleyland.com and on the Company’s intranet portal.
2 Whether the enty has translated the policy into procedures. (Yes / No) Y Y Y Y Y Y Y Y Y
3 Do the enlisted policies extend to your value chain partners? (Yes/No) Y Y Y Y Y Y Y Y Y
4 Name of the naonal and internaonal codes/cercaons/ labels/
standards (e.g., Forest Stewardship Council, Fairtrade, Rainforest Alliance,
Trustee) standards (e.g., SA 8000, OHSAS, ISO, BIS) adopted by your
enty and mapped to each principle.
Yes. Policies are developed considering relevant naonal acts
like the Factories Act, of 1948, the Companies Act of 2013,
the SEBI (Lisng Obligaons and Disclosure Requirements)
Regulaons of 2015, and various other Statutes which refers
to Naonal / Internaonal codes, cercaons, labels and
standards
5 Specic commitments, goals, and targets set by the enty with dened
melines, if any.
Y Y Y Y Y Y Y Y Y
6 Performance of the enty against the specic commitments, goals, and
targets along with reasons in case the same are not met.
Ashok Leyland has commied to the ESG-related goals
and targets in the current FY, i.e., FY 2022-23. Hence, the
performance will be monitored in the following FY.
72 Ashok Leyland Limited
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
Governance, leadership and oversight
7. Statement by director responsible for the business responsibility report, highlighng ESG related challenges, targets and achievements
On the product and technology front, which is our passion, we are making good progress in alternate propulsion development. At the
Auto Expo held in Delhi in January this year, a wide range of alternate fuel driven products were displayed across our LCV, ICV and MDV
plaorms. This covered CNG, LNG, Hydrogen, Fuel Cell, and Baery Electric opons. Switch Mobility, through which we are posioning
the electric vehicles, has gained considerable momentum in FY23, and has already made a mark in the industry. The electric LCV is slated
for introducon later this year.
Recognising the importance of building a talent pipeline in an environment of homogenous culture, our HR team was on an overdrive
launching several iniaves and cascading them across the board. These iniaves include dening the organisaon purpose as
“Transforming Lives & Businesses through Leadership in Mobility” and driving a new culture throughout the organisaon. Preparing future
leaders saw the introducon of a new AL-Young Talent Program and the AL-Emerging Leaders Program. Another signicant milestone in
our gender diversity pathway is the establishing of an all women-run engine assembly line in our Hosur plant.
I would like to take this opportunity to present some of the key iniaves in other areas that are relevant to our business. Our plants
have won 13 CII-Environment, Health, and Safety Excellence Awards. Use of renewable solar power is at the top of the agenda. Renewable
energy now constutes 57% of our total requirement. Furthermore, your Company believes sustainability is key to its overall strategy
and is consciously moving from compliance to compeveness in the overall ESG approach. And as part of a holisc approach to
sustainability, your Company has developed an ESG vision: “To create and lead sustainable pracces, across Environment, Social and
Governance iniaves, delivering outstanding stakeholder value.” This vision has been further operaonalized into 10 Focus areas deep
diving individually in E, S, and G areas. Moving forward, your Company is also preparing for some major commitments around becoming
carbon-neutral in its operaons in the medium term and becoming Net Zero in the long term.
Under CSR, our Road to School programme (RTS) is making strides and the coverage has increased from 98,000 to over 150,000 children.
During the year, the RTS iniave has been extended to J&K and Assam and is gaining ground gradually. RTS has also received awards
from the Tamil Nadu Government, ASSOCHAM, FICCI and SIAM. The Road to Livelihood programme, which was introduced this year for
Classes 9-12 has been well received by parents and the community. Your Company is determined to expand this further, not just impacng
a greater number of students but also widening its reach to many more states.
8. Details of the highest authority responsible
for implementaon and oversight of the
Business Responsibility policy (ies).
Mr. Alok Verma,
Head of Corporate Strategy & ESG
9. Does the enty have a specied
Commiee of the Board/ Director
responsible for decision-making on
sustainability-related issues? (Yes / No). If
yes, provide details.
Yes, The Board has constuted the Environmental, Social and Governance Commiee
(‘ESG Commiee’) to guide and assist the Board of the Company in fullling its oversight
responsibilies and also make recommendaons as appropriate, on maers related to
enty wide ESG iniaves, key focus areas and benchmarked ESG pracces.
The terms of reference of the ESG Commiee are as below:
- Oversee, review and assess whether the Company’s strategy, policy and iniaves are in
line with the macro developments happening in the ESG domain.
- Integrate the relevant iniaves on maers relang to Environmental, Health and Safety,
Corporate Social Responsibility, Sustainability, and other public policy maers, acvies,
and proposals related to ESG with the other Board Commiees.
- Review material ESG aspects for the Company and oversee the development and
implementaon of the Management’s targets, standards, and metrics to assess and track
the Company’s ESG performance.
- Review and approve the Company’s ESG public disclosures and oversee the Company’s
engagement with the stakeholders on ESG issues and also review stakeholder feedback
from the ESG disclosures.
- Review monitoring processes for tracking ESG performance.
- Monitor and review stakeholder percepon of the Company around ESG topics (including
ESG rangs by leading agencies)
- Review and ensure compliance with regulatory ESG disclosures as required and amended
from me to me (such as BRSR).
Annual Report 2022-23 73
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10. Details of Review of NGRBCs by the Company:
Subject for Review Indicate whether review was undertaken
by the Director/Commiee of the Board/
Any other Commiee
Frequency (Annually/ Half yearly/
Quarterly/ Any other – please specify)
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance against the above policies and
follow-up acon
Y Y Y Y Y Y Y Y Y Policies are reviewed periodically or on a
need basis from me to me and necessary
updates are made wherever required
Compliance with statutory requirements of
relevance to the principles, and reccaon
of any non-compliances
Y Y Y Y Y Y Y Y Y Annual basis
11. Has the enty carried out an independent assessment/ evaluaon of the working of its
policies by an external agency? (Yes/No). If yes, provide name of the agency
P1 P2 P3 P4 P5 P6 P7 P8 P9
No*
*Most of the policies of the Company are reviewed internally on a periodic basis. No review is conducted through external partners.
12. If answer to queson (1) above is No i.e. not all Principles are covered by a policy, reasons to be stated:
Quesons P1 P2 P3 P4 P5 P6 P7 P8 P9
The enty does not consider the principles material to its business (Yes/No) NA
The enty is not at a stage where it is in a posion to formulate and implement the policies on
specied principles (Yes/No)
NA
The enty does not have the nancial or/human and technical resources available for the task
(Yes/No)
NA
It is planned to be done in the next nancial year (Yes/No) NA
Any other reason (please specify) NA
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
This secon is aimed at helping enes demonstrate their performance in integrang the Principles and Core Elements with key processes and
decisions. The informaon sought is categorized as “Essenal” and “Leadership”. While the essenal indicators are expected to be disclosed by
every enty that is mandated to le this report, the leadership indicators may be voluntarily disclosed by enes which aspire to progress to a
higher level in their quest to be socially, environmentally and ethically responsible.
PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable.
Essenal Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the nancial year:
Segment Total number
of training
and awareness
programmes held
Topics / principles covered under the training and its impact %age of persons in
respecve category
covered by the
awareness programmes
Board of Directors 7 Compliance Management, Environment, Social, Governance,
Human Resource, Social Well-Being, Customer Sasfacon
97%
Key Managerial
personnel including
the leadership team
338
(Including digital
modules)
Culture workshop
Leadership training
Funconal training such as TQBM, BBS, Products and sales
80.4%
Employees other
than BoD and KMPs
/ Leadership team
3,766
(Including digital
modules)
Training programmes covering Behavioral, emerging skills,
funconal competencies, technical training
99.3%
Workers 95 Upskilling of the associates on SG operaons, Tie-up with the
Instute of Indian Foundrymen for Technical Training, Behaviour
Based Training on safety, EHS, MGI, Basic of hand tools, JH
Training, BSVI Awareness, Department specic skill upgradaon,
Quality Iniave, Basic of TQBM, Skill Development Program,
POSH, Safety Awareness, Health Awareness
Hands-on Training of Assembly and Machining. Foundry
Technology, Health Awareness Cognive Skills, Dexterity Training
97.5%
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2. Details of nes / penales /punishment/ award/ compounding fees/ selement amount paid in proceedings (by the enty or by directors
/ KMPs) with regulators/ law enforcement agencies/ judicial instuons, in the nancial year, in the following format (Note: the enty
shall make disclosures on the basis of materiality as specied in Regulaon 30 of SEBI (Lisng Obligaons and Disclosure Obligaons)
Regulaons, 2015 and as disclosed on the enty’s website):
Monetary
NGRBC
Principle
Name of the
regulatory/
enforcement agencies/
judicial instuons
Amount
(In INR)
Brief of the
Case
Has an
appeal been
preferred?
(Yes/No)
Penalty/ Fine - - - - -
Selement - - - - -
Compounding - - - - -
fee - - - - -
Non-Monetary
NGRBC
Principle
Name of the
regulatory/
enforcement agencies/
judicial instuons
Amount
(In INR)
Brief of the
Case
Has an
appeal been
preferred?
(Yes/No)
Imprisonment - - - - -
Punishment - - - - -
3. Of the instances disclosed in Queson 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-monetary
acon has been appealed.
Not Applicable
4. Does the enty have an an-corrupon or an-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy.
Ashok Leyland has an-corrupon and an-bribery covered as part of employment terms and condions of an employee. The policy is
available to all employees on the Company Intranet.
5. Number of Directors/KMPs/employees/workers against whom disciplinary acon was taken by any law enforcement agency for the
charges of bribery/ corrupon:
FY 2022-23 FY 2021-22
Directors - -
KMPs - -
Employees - -
Workers - -
6. Details of complaints with regard to conict of interest:
FY 2022-23 FY 2021-22
Number Remarks Number Remarks
Number of complaints received in relaon to issues of
Conict of Interest of the Directors
Nil Not Applicable Nil Not Applicable
Number of complaints received in relaon to issues of
Conict of Interest of the KMPs
Nil Not Applicable Nil Not Applicable
7. Provide details of any correcve acon taken or underway on issues related to nes / penales / acon taken by regulators/ law
enforcement agencies/ judicial instuons, on cases of corrupon and conicts of interest.
Not Applicable
Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the nancial year:
Total number of awareness
programmes held
Topics / principles
covered
under the
training
%age of value chain
partners covered (by value
of business done with such
partners) under the
awareness programmes
Not Available Not Available 0
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2. Does the enty have processes in place to avoid/ manage conict of interests involving members of the Board? (Yes/No) If Yes, provide
details of the same.
Yes. The Company receives disclosures/declaraons from its Board members regarding their Directorship/Commiee/shareholding on an
annual basis. The Company ensures that all requisite approvals are in place as required under various statutes before transacng with such
enes/individuals. The interested Directors do not parcipate in agenda items at the Board/Commiee Meengs in which they are deemed
to be interested.
PRINCIPLE 2 Businesses should provide goods and services in a manner that is sustainable and safe
Essenal Indicators
1. Percentage of R&D and capital expenditure (capex) investments in specic technologies to improve the environmental and social impacts
of product and processes to total R&D and capex investments made by the enty, respecvely.
FY 2022-23 FY 2021-22 Details of improvements in environmental and social impacts
R&D 1.11% 1.70% Alternate fuel vehicles developed & showcased in Auto Expo 2023 – CNG,
LNG, H2 ICE, EV, FCEV – Leading the path towards green economy.
Capex 0.08% 0.05% Ashok Leyland has developed Vehicle models with CNG, LNG fuelled
engines. The company is also invesng to develop Hydrogen IC engine
towards sustainable mobility
2. a. Does the enty have procedures in place for sustainable sourcing? (Yes/No)
No
b. If yes, what percentage of inputs were sourced sustainably?
Ashok Leyland currently does not have a sustainable sourcing policy and does not monitor materials that are sourced sustainably.
However, the general purchases agreement covers the ESG-related requirements and the same is signed o.
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plascs
(including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
Currently, there are no processes in place to safely reclaim products for reusing, recycling and disposing at the end of life.
4. Whether Extended Producer Responsibility (EPR) is applicable to the enty’s acvies (Yes / No). If yes, whether the waste collecon
plan is in line with the Extended Producer Responsibility (EPR) plan submied to Polluon Control Boards? If not, provide steps taken to
address the same.
Yes, Extended Producer Responsibility (EPR) registraon has been done in the Central Polluon Control Board (CPCB) Portal. Waste collecon
plan is in alignment with EPR plan and would be submied shortly as per the mandate given by CPCB by Oct 23. Recycling cercates from
vendors have been aligned towards ling.
Leadership Indicators
1. Has the enty conducted Life Cycle Perspecve / Assessments (LCA) for any of its products (for manufacturing industry) or for its services
(for service industry)? If yes, provide details in the following format?
NIC Code Name of Product/
Service
% of total Turnover
contributed
Boundary for
which the Life
cycle Perspecve
/ Assessment was
conducted
Whether conducted
by independent
external agency
(Yes/No)
Results
communicated in
public domain (Yes/
No) If yes, provide
the web-link.
Not conducted LCA for any products
2. If there are any signicant social or environmental concerns and/or risks arising from the producon or disposal of your products/
services, as idened in the Life Cycle Perspecve / Assessments (LCA) or through any other means, briey describe the same along-with
acon taken to migate the same.
Name of Product / Service Descripon of the risk/ concern Acons Taken
Not conducted LCA for any products
3. Percentage of recycled or reused input material to total material (by value) used in producon (for manufacturing industry) or providing
services (for service industry).
Indicate input material Recycled or re-used input material to total material
FY 2022-23 FY 2021-22
Steel Not Available Not Available
Aluminium Not Available Not Available
76 Ashok Leyland Limited
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4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed, as
per the following format:
FY 2022-23 FY 2021-22
Re-used Recycled Safely
Disposed
Re-used Recycled Safely
Disposed
Plascs (including packaging) NA NA NA NA NA NA
E-waste NA NA NA NA NA NA
Hazardous waste NA NA NA NA NA NA
Other waste NA NA NA NA NA NA
*NA – Not Available
5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Indicate product category Reclaimed products and their packaging materials as % of total
products sold in respecve category
Not Available Not Available
PRINCIPLE 3 Businesses should respect and promote the well-being of all employees, including those in their value chains
Essenal Indicators
1. a. Details of measures for the well-being of employees:
Category % of employees covered by
Total (A) Health insurance Accident insurance Maternity Benets Paternity Benets Day Care facilies
Number
(B)
%
(B/A)
Number
(C)
%
(C/A)
Number
(D)
%
(D/A)
Number
(E)
%
(E/A)
Number
(F)
%
(F/A)
Permanent Employees
Male 4,511 4,511 100% 4,511 100% 0 0 223 5% 0 0
Female 271 271 100% 271 100% 28 10% 0 0 0 0
Total 4,782 4,782 100% 4,782 100% 28 1% 223 5% 0 0
Other than Permanent Employees
Male 0 0 0 0 0 0 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0 0
Total 0 0 0 0 0 0 0 0 0 0 0
Note:
All permanent employees are covered by well-being measures such as health insurance, accident insurance, maternity benets (if applicable),
paternity benets (if applicable), day care facilies (if applicable).
b. Details of measures for the well-being of workers:
Category % of workers covered by
Total
(A)
Health insurance Accident insurance Maternity Benets Paternity Benets Day Care facilies
Number
(B)
% (B/A) Number
(C)
% (C/A) Number
(D)
% (D/A) Number
(E)
% (E/A) Number
(F)
% (F/A)
Permanent Workers
Male 4,777 4,777 100% 4,777 100% 0 0 0 0 0 0
Female 44 44 100% 44 100% 44 100% 0 0 44 100%
Total 4,821 4,821 100% 4,821 100% 44 1% 0 0 44 1%
Other than Permanent Workers
Male 17,579 17,579 100% 17,579 100% 0 0 0 0 0 0
Female 532 532 100% 532 100% 532 100% 0 0 532 100%
Total 18,111 18,111 100% 18,111 100% 532 3% 0 0 532 3%
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2. Details of rerement benets, for Current FY and Previous Financial Year
Benets FY 2022-23 FY 2021-22
No. of
employees
covered as
a % of total
employees
No. of workers
covered as a %
of total workers
Deducted and
deposited with
the authority
(Y/N/N.A.)
No. of
employees
covered as
a % of total
employees
No. of workers
covered as a %
of total workers
Deducted and
deposited with
the authority
(Y/N/N.A.)
PF 100% 100% Y 100% 100% Y
Gratuity 100% 100% Y 100% 100% Y
ESI as per statute
as applicable
100% Y 100% 100% Y
Others – please specify 0 0 NA 0 0 NA
3. Accessibility of workplaces
Are the premises / oces of the enty accessible to dierently abled employees and workers, as per the requirements of the Rights
of Persons with Disabilies Act, 2016? If not, whether any steps are being taken by the enty in this regard.
Yes, the oces of Ashok Leyland provide infrastructure support for dierently abled individuals. The Company has thoughully taken concrete
acons of all its plant units with improved facilies for managing mobility needs. Addional support for individuals with disabilies is available
at all premises/oces/units on need basis. The Company encourages inputs from employees, workers and visitors in improving accessibility
for creang an inclusive workplace for each individual. A feasibility study is planned to understand the requirements of such cases unit-wise.
4. Does the enty have an equal opportunity policy as per the Rights of Persons with Disabilies Act, 2016? If so, provide a web-link
to the policy?
Yes, Ashok Leyland has an equal opportunity policy as per the Rights of Persons with Disabilies Act, 2016. The policy is part of the general
terms and condions of employment in the Company Intranet.
5. Return to work and Retenon rates of permanent employees and workers that took parental leave.
Permanent employees Permanent workers
Gender Return to work rate Retenon rate Return to work rate Retenon rate
Male 100% 92% NA NA
Female 100% 95% NA NA
Total 100% 94% NA NA
*NA-Not Available
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes, give details
of the mechanism in brief.
Yes. Ashok Leyland has ensured to maintain an eecve complaint redressal mechanism to ensure that any concerns are addressed promptly
and eecvely, The Company has a well-established PoSH policy and related governance to redress grievances registered by all Employees.
In consonance with the leer and spirit of the Sexual Harassment of Women at Workplace (Prevenon, Prohibion and Redressal) Act, 2013
directed at ensuring that a workplace is safe and free of harassment and discriminaon. The Policy has been adopted by the Company in
the following way:
– Lays down certain protocols to be followed with due regard to respect the dignity of all co-workers
– Sets out a mechanism for redressal of complaints of workplace harassment against women
– Prescribes that punishment meted out should be commensurate with the gravity of any oence commied and also lay down a
prevenve framework with zero-tolerance mandate.
Yes/No (If Yes, then give details of the mechanism in brief)
Permanent Workers Yes
Other than Permanent Workers Yes
Permanent Employees Yes
Other than Permanent Employees Yes
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7. Membership of employees and worker in associaon(s) or Unions recognized by the listed enty:
Category FY 2022-23 FY 2021-22
Total
employee/
workers in
the respecve
category
(A)
No. of
employees /
workers in
respecve
category, who
are part of
associaon(s)
or Union
(B)
% (B / A) Total
employees
/ workers in
the respecve
category (C )
No. of
employees /
workers in
the respecve
category, who
are part of
associaon(s)
or Union
(D)
% (D / C)
Total Permanent Employees NA NA NA NA NA NA
- Male NA NA NA NA NA NA
- Female NA NA NA NA NA NA
Total Permanent Workers 4,821 4,821 100% 5,020 5,020 100%
- Male 4,777 4,777 100% 4,993 4,993 100%
- Female 44 44 100% 27 27 100%
*NA-Not Available
8. Details of training given to employees and workers:
Category FY 2022-23 FY 2021-22
Total (A) On Health and
Safety Measures
On Skills
upgradaon
Total (D) On Health and
Safety Measures
On Skills
upgradaon
No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees
Male 4,511 1,294 29% 4,011 89% 4,760 1,572 33% 4,309 91%
Female 271 223 82% 255 94% 311 154 50% 292 94%
Total 4,782 1,517 32% 4,266 89% 5,071 1,726 34% 4,601 91%
Workers
Male 4,777 4,777 100% 4,060 85% 4,993 4,993 100% 3,583 72%
Female 44 44 100% 44 100% 27 27 100% 27 100%
Total 4,821 4,821 100% 4,104 85% 5,020 5,020 100% 3,610 72%
*Training data given for permanent workers.
9. Details of performance and career development reviews of employees and worker:
Category FY 2022-23 FY 2021-22
Total (A) No. (B) % (B/A) No. (C) Total (D) % (C/A)
Employees
Male 4,511 4,511 100% 4,760 4,760 100%
Female 271 271 100% 311 311 100%
Total 4,782 4,782 100% 5,071 5,071 100%
Workers
Male NA NA NA NA NA NA
Female NA NA NA NA NA NA
Total NA NA NA NA NA NA
*NA-Not Applicable
10. Health and safety management system:
a. Whether an occupaonal health and safety management system has been implemented by the enty? (Yes/ No). If yes, the
coverage such system?
Yes. Ashok Leyland has adopted and implemented the ISO 45001 by integrang all crical business acvies and applying principles
and processes in order to provide safe and healthy workplaces at all its manufacturing sites. The Company further takes measures to
prevent work-related injury and ill health, minimizes risks and connuously improve safety performance.
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b. What are the processes used to idenfy work-related hazards and assess risks on a roune and non-roune basis by the enty?
All the manufacturing facilies are cered with ISO 45001 OHS management system. Accordingly, the facilies adopt the processes
of Hazard Idencaon and Risk Assessment (HIRA) techniques for roune acvies and Job Safety Analysis (JSA) for non-roune
acvies. The Company regularly conducts audits and inspecons of its occupaonal health and safety management systems. The team
at the site has individually set an internal review mechanism to check performance and take control measures. The EHS management
system gets audited from me to me, and leadership reviews are conducted on a monthly basis. The Company has a well-dened
EHS policy and EHS performance is reviewed and governed by the EHS council.
c. Whether you have processes for workers to report work-related hazards and to remove themselves from such risks. (Y/N)
Yes, Ashok Leyland has a process of involving workers as a part of the Safety Commiee to proacvely idenfy and address potenal
risks. The Company fosters a culture in which empowers them to report work-related Hazards in a place where safety-related incidents
are reported and these include but are not limited to injury-related incidents, safety incidents, near misses, mechanical risks, road
accidents, etc. The workers are included in the process of correcve/prevenve acon and also during implementaon of the same.
They are also given the opportunity to formally give feedback and suggesons on all safety related concerns.
d. Do the employees/ worker of the enty have access to non-occupaonal medical and healthcare services? (Yes/ No)
Yes, all employees and other than permanent employees have access to non-occupaonal medical and healthcare services and medical
insurance facilies.
11. Details of safety related incidents, in the following format:
Safety Incident/Number Category FY 2022-23 FY 2021-22
Lost Time Injury Frequency Rate (LTIFR) (per one million person hours worked) Employees 0.06 0.02
Workers 0.05 0.04
Total recordable work-related injuries Employees 3 1
Workers 20 13
No. of fatalies Employees 0 0
Workers 1 0
High-consequence work-related injury or ill health (excluding fatalies) Employees 0 0
Workers 2 0
12. Describe the measures taken by the enty to ensure a safe and healthy workplace.
The Company has established a well-dened EHS policy and EHS management system with a robust monitoring plan, operang with a mul-
year approach, to ensure the eecve implementaon of the EHS policy. This system is designed according to the Plan-Do-Check-Act cycle
of connual improvement. This approach includes the undertaking of assessments of various risks such as workplace risks, re risks, process
safety, ergonomics machinery risk, occupaonal health, and chemical risks, and so on and so forth. Ashok Leyland has also instuonalised
an EHS system which is adopted from the global safety processes and policies. All plants and oces are ISO 14001, and ISO 45001 cered.
Ashok Leyland conducts a monthly review of the EHS performance and the ndings from this review are discussed during the country EHS
commiee meeng under the able leadership of MD and other senior leadership of Ashok Leyland.
13. Number of Complaints on the following made by employees and workers:
FY 2022-23 FY 2021-22
Filed during the
year
Pending
resoluon at
the end of year
Remarks Filed during the
year
Pending
resoluon at
the end of year
Remarks
Working Condions 18 0 - 0 0 -
Health & Safety 1 0 - 0 0 -
14. Assessments for the year:
% of your plants and oces that were assessed
(by enty or statutory authories or third pares)
Health and safety pracces 100% of plants
Working Condions 100% of plants
15. Provide details of any correcve acon taken or underway to address safety-related incidents (if any) and on signicant risks/concerns
arising from assessments of health & safety pracces and working condions.
For any safety-related incidents, proper invesgaon and detailed 6M (Man, Machine, Method, Material, Measurement, and Mother Nature)
and Why-Why analysis are done to idenfy the root cause and appropriate correcve acons implemented in all applicable areas. The
Hazard Idencaon and Risk Assessment (HIRA) is carried out on various acvies and control measures are planned to migate risks
according to the hierarchy of controls. As per the hierarchy of controls, the eliminaon of hazards is the most eecve control and followed
by the Substuon of hazards, Engineering Controls, Administrave Controls, and Use of Personal Protecve Equipment (PPE). Further, the
acon taken report is submied to the concerned stakeholder.
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Leadership Indicators
1. Does the enty extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N).
Yes, Ashok Leyland extends compensatory packages to employees as well as workers in the event of death.
2. Provide the measures undertaken by the enty to ensure that statutory dues have been deducted and deposited by the value chain
partners.
Business agreements, as applicable, entered with the value chain partners covers the clause relang to deducon, deposit and payment of
statutory dues.
3. Provide the number of employees / workers having suered high consequence work- related injury / ill-health / fatalies (as reported
in Q11 of Essenal Indicators above), who have been rehabilitated and placed in suitable employment or whose family members have
been placed in suitable employment:
Total no. of aected employees/ workers No. of employees/workers that are rehabilitated
and placed in suitable employment or whose family
members have been placed in suitable employment
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
Employees 0 0 0 0
Workers 2 0 0 0
4. Does the enty provide transion assistance programs to facilitate connued employability and the management of career endings
resulng from rerement or terminaon of employment? (Yes/ No)
Yes, all rered execuves who were on the Ashok Leyland permanent payroll and their spouses are covered under Rered Execuve Health
Insurance.
5. Details on assessment of value chain partners:
% of value chain partners (by value of business done
with such partners) that were assessed
Health and safety pracces 21%
Working Condions 21%
6. Provide details of any correcve acons taken or underway to address signicant risks /concerns arising from assessments of health and
safety pracces and working condions of value chain partners.
No signicant risks were observed through assessments conducted on health and safety pracces and the working condion of the supply
chain associated with the Company.
PRINCIPLE 4 Businesses should respect the interests of and be responsive to all its stakeholders
Essenal Indicators
1. Describe the processes for idenfying key stakeholder groups of the enty.
Ashok Leyland has idened the key internal and external stakeholders through peer review and analysis of stakeholder groups that could
have a potenal impact or inuence on its business operaons and the Company’s impact on them. Ashok Leyland commits to acvely
engage with the stakeholders to understand their key expectaons and develop strategies to address them.
2. List stakeholder groups idened as key for your enty and the frequency of engagement with each stakeholder group
Stakeholder
group
Whether
idened as
Vulnerable &
Marginalized
Group (Yes/No)
Channels of communicaon
(Emails, SMS, Newspapers,
Pamphlets, Adversement,
Community meengs, Noces
Board, Website)
Frequency of
engagement
(Annually/ Half yearly/
Quarterly/others)-
Please specify
Purpose and scope of engagement
including key topics and concerns raised
during such engagements
Employees No • Monthly and quarterly meet
• Personal review and visits
• Surveys
• Training
• Annual day
• Events
• Monthly
• Quarterly
• Annual
• Need-based
• Beer prospects
• Safe work environment
• Skill management
• Knowledge management
• Fair remuneraon
• Employee volunteering for CSR acvies
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Stakeholder
group
Whether
idened as
Vulnerable &
Marginalized
Group (Yes/No)
Channels of communicaon
(Emails, SMS, Newspapers,
Pamphlets, Adversement,
Community meengs, Noces
Board, Website)
Frequency of
engagement
(Annually/ Half yearly/
Quarterly/others)-
Please specify
Purpose and scope of engagement
including key topics and concerns raised
during such engagements
Suppliers Yes • Suppliers meet
• Tech days
• Mutual visits
• Need-based meengs with
leadership team
• Company events
• Monthly
• Annual
• Need-based
• Long-term business commitments
• Economic scenario with respect to
commercial vehicle industry
• Scheduling
• Supplier development
* Ease of doing business for MSME
suppliers through portal
Local
Communies
Yes • Community welfare
programmes
• Project assessment reviews
• Need-based
• Periodic
• Community safety and development
• Engagement and communicaon
Customers
(Instuonal
and Retail)
No • Surveys
• Company events
• Iniaves like rewards for
purchases
• Need-based
• Periodic
• Delivery
• Technical communicaon
• Aersales service
• Quality of service
Government
and
Regulatory
Authories
No • One-to-one meengs
• Events and conferences
• Need-based
• Periodic
• Compliance
• Tax payment
Channel
Partners
No • Monthly and Quarterly meet
• Personal reviews and visits
• Surveys
• Training
• Events – dealer conference
• Monthly
• Quarterly
• Annual
• Need-based
• Business targets, commitment, and
development plan
• Training and development
• Customer engagement and sasfacon
Leadership Indicators
1. Provide the processes for consultaon between stakeholders and the Board on economic, environmental, and social topics or if
consultaon is delegated, how is feedback from such consultaons provided to the Board.
The Stakeholder Relaonship Commiee of the Company ensures the respect of and is responsible towards all its investors. The Company
has necessary procedures in place to ensure compliance with all relevant regulaons. The compliance report underlining the Code of
Conduct (CoC) is reviewed by the senior management group of the organisaon on a periodic basis, provides feedback on maers relang
to Environmental, Health and Safety, Corporate Social Responsibility, Sustainability, and other public policy maers, acvies, and proposals
related to ESG.
2. Whether stakeholder consultaon is used to support the idencaon and management of environmental, and social topics (Yes / No).
If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into the policies
and acvies of the enty.
The Company conducted its Materiality Assessment in consultaon with its key idened stakeholder groups. The Company engaged with
its stakeholder groups (both internal and external stakeholders) through one-on-one interacon and gathered their inputs to determine and
priorize the sustainability issues that maer most to the business operaons of Ashok Leyland.
3. Provide details of instances of engagement with, and acons taken to, address the concerns of vulnerable/ marginalized stakeholder
groups.
As part of Jal Jeevan and Road to School iniaves, the Company engages with underserved & marginalized communies which falls below
poverty line, landless laborer and communies in remote hilly locaons
Iniaves /
Intervenon
Project Descripon Beneciaries
Engaged
Locaon Remarks
Water
Iniave
Spring Shed water management:
Through the rejuvenaon of Springs,
sustainable drinking water is recharged
for community ulizaon. Aorestaon
eorts to improve the vegetaon cover
Sustainable water management: The
project aims to provide and create
water resources for the community
through sustainable water conservaon
techniques.
Beneficiaries
of this project
belongs to
agriculture and
agricultural labor.
- Spring shed Management is
implemented in Nainital District,
Uarakhand.
- Sustainable Water Management
Project is implemented in 11
villages of Alwar district, Rajasthan.
- As part of Spring water recharge
program, aorestaon drive done
to improve the vegetaon cover.
In all our
intervenons more
than 80% of the
beneciaries belong
to the underserved
and marginalized
communies.
82 Ashok Leyland Limited
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Iniaves /
Intervenon
Project Descripon Beneciaries
Engaged
Locaon Remarks
Educaon:
Road to
School
Providing Foundaonal Literacy &
numeracy, Awareness on wellness,
health & hygiene, social & emoonal
development for Government School
Students. Strengthening Road to
School Community and SMC for School
Development.
Beneficiaries
are Government
School students
from interior
rural villages.
Tamil Nadu, Jammu & Kashmir,
Rajasthan and Assam
Educaon:
Road to
Livelihood
To prepare adolescent students from
rural areas for life beyond school with
focus on employability skills and career
guidance for students from High and
Higher Secondary Schools
Beneficiaries
are Government
School students
from interior
rural villages.
Tamil Nadu
Supply Chain
: MSME
suppliers
Portal for supporng the MSME smooth
selement of payment dues
52 Vendors who
are registered
as MSME and
supplying
components to
Ashok Leyland
PAN India
PRINCIPLE 5 Businesses should respect and promote human rights
Essenal Indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the enty, in the following format:
Category FY 2022-23 FY 2021-22
Total (A) No. employees
/ workers
covered (B)
% (B / A) Total
(C)
No. employees
/ workers
covered (D)
% (D/C)
Employees
Permanent 4,782 4,085 85% 5,071 4,293 84%
Other than permanent 0 0 0 0 0 0
Total Employees 4,782 4,085 85% 5,071 4,293 84%
Workers
Permanent 4,821 4,821 100% 5,020 5,020 100%
Other than permanent 18,111 18,111 100% 16,236 16,236 100%
Total Workers 22,932 22,932 100% 21,256 21,256 100%
2. Details of minimum wages paid to employees and workers, in the following format:
Category FY 2022-23 FY 2021-22
Total (A) Equal to
Minimum Wage
More than
Minimum Wage
Total (D) Equal to
Minimum Wage
More than
Minimum Wage
No. (B) % (B/A) No (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees
Permanent 4,782 0 0 4,782 100% 5,071 0 0 5,071 100%
Male 4,511 0 0 4,511 100% 4,760 0 0 4,760 100%
Female 271 0 0 271 100% 311 0 0 311 100%
Other than Permanent 0 0 0 0 0 0 0 0 0 0
Male 0 0 0 0 0 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0
Workers
Permanent 4,821 0 0 4,821 100% 5,020 - - 5,020 100%
Male 4,777 0 0 4,777 100% 4,993 - - 4,993 100%
Female 44 0 0 44 100% 27 - - 27 100%
Other than Permanent 18,111 10,760 59% 7,351 41% 16,236 9,628 59% 6,608 41%
Male 17,579 10,547 60% 7,032 40% 15,664 9,399 60% 6,265 40%
Female 532 213 40% 319 60% 572 229 40% 343 60%
Note: The Company is currently in the process of seng up a mechanism to track its other than permanent employees based on gender.
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3. Details of remuneraon/salary/wages, in the following format:
Please refer to “Annexure B – Parculars of Employees” of Board’s report in the Annual Report for FY 2022-23.
4. Do you have a focal point (Individual/ Commiee) responsible for addressing human rights impacts or issues caused or contributed to
by the business? (Yes/No)
Yes, Ashok Leyland has a well-established PoSH Policy and related governance framework to address all the grievances registered by the
employees of AL. All employees and workers of the Company are well sensized and educated on the importance of such mechanism and
the process of its working.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
Ashok Leyland has a well-dened process devised in the organisaon where there are awareness drives conducted on sexual harassment to
prevent and deter its occurrence in the workplace. AL has also constuted an internal commiee named ‘Internal Complaints Commiee’
(ICC) which has the responsibility to address, invesgate and arrive at a decision on all complaints of sexual harassment that it receives
directly or indirectly.
6. Number of Complaints on the following made by employees and workers:
FY 2022-23 FY 2021-22
Filed
during the
year
Pending resoluon
at the end of the
year
Remarks Filed
during the
year
Pending resoluon
at the end of the
year
Remarks
Sexual Harassment 2 0 - 0 0 -
Discriminaon at workplace 0 0 - 0 0 -
Child Labour 0 0 - 0 0 -
Forced Labour/Involuntary Labour 0 0 - 0 0 -
Wages 0 0 - 0 0 -
Other human rights-related issues 0 0 - 0 0 -
*Union Charters or demands are not captured as a complaint as it is having a separate resoluon mechanism through collecve bargaining in place.
7. Mechanisms to prevent adverse consequences to the complainant in discriminaon and harassment cases.
Ashok Leyland has a well-dened mechanism to prevent adverse consequences to the complainant in discriminaon and harassment cases
and it is covered as part of general terms and condions of employment in the Company’s Intranet. This is applicable to all employees.
8. Do human rights requirements form part of your business agreements and contracts? (Yes/No)
Yes, in business agreements and contracts where relevant.
9. Assessments for the year:
% of your plants and oces that were assessed (by enty or
statutory authories or third pares)
Child labour 100%
Forced/involuntary labour 100%
Sexual harassment 100%
Discriminaon at workplace 100%
Wages 100%
10. Provide details of any correcve acons taken or underway to address signicant risks / concerns arising from the assessments at
Queson 9 above.
Not Applicable, as Ashok Leyland conducts reviews on an annual basis and collects declaraons from all employees and workers. Addionally,
awareness programs on the global disciplinary frameworks are conducted for all employees and workers.
Leadership Indicators
1. Details of a business process being modied/introduced as a result of addressing human rights grievances/complaints.
NIL. The Company did not receive any grievances/complaints regarding Human Rights principles and guidelines.
2. Details of the scope and coverage of any Human rights due-diligence conducted.
Yes, Ashok Leyland has conducted human rights due-diligence as part of long-term selement term of welfare.
3. Is the premise/oce of the enty accessible to dierently abled visitors, as per the requirements of the Rights of Persons with
Disabilies Act, 2016?
Yes, the oces of Ashok Leyland are accessible to dierently abled visitors and other areas based on need.
84 Ashok Leyland Limited
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4. Details on assessment of value chain partners:
% of value chain partners (by value of business done
with such partners) that were assessed
Sexual Harassment NA
Discriminaon at workplace NA
Child Labour 100%
Forced Labour/Involuntary Labour 100%
Wages NA
Others – please specify NA
*NA-Not Available
5. Provide details of any correcve acons taken or underway to address signicant risks/concerns arising from the assessments at Queson
4 above.
Not Applicable
PRINCIPLE 6 Businesses should respect and make eorts to protect and restore the environment
Essenal Indicators
1. Details of total energy consumpon (in Joules or mulples) and energy intensity, in the following format:
Parameter FY 2022-23 FY 2021-22
Total electricity consumpon (A) - 000’ GJ 1,128.94 887.4
Total fuel consumpon (B) - 000’ GJ 492.59 367.76
Energy consumpon through other sources (c) - 000’ GJ 0 0
Total energy consumpon (A+B+C) - 000’ GJ 1,621.53 1,255.00
Energy intensity per rupee of turnover (Total energy consumpon/turnover in rupees) – GJ/INR Crore 44.86* 57.87
Energy intensity (oponal) – the relevant metric may be selected by the enty
*Above is the consolidated gure for the Automove and Foundry operaons. For purposes of like-to-like comparison with Industry, please
nd below the detailing of Energy Intensity for Automove operaons
Energy Intensity for Automove operaons = 27.08 GJ/INR Crore
Energy Intensity – Foundry operaons (Energy consumed in Foundry/Total revenue generated by Foundry) = 565.84 GJ/INR Crore and Energy
Intensity – Automove (Energy Consumed in Automove Locaon/Total Revenue generated by Automove Locaon) = 27.08 GJ/ INR Crore
Note: Indicate if any independent assessment/ evaluaon/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
Yes, third party vericaon was carried out by DNV
2. Does the enty have any sites/facilies idened as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme
of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have
not been achieved, provide the remedial acon taken, if any.
Ashok Leyland does not have sites/facilies idened as designated consumer under the Performance, Achieve and Trade (PAT) Scheme of
the Government of India.
3. Provide details of the following disclosures related to water, in the following format:
Parameter FY 2022-23 FY 2021-22
Water withdrawal by source (in kilolitres)
(i) Surface water 8,601 0
(ii) Groundwater 640,385 481,920
(iii) Third party water 505,407.16 550,730
(iv) Seawater / desalinated water 0 0
(v) Others 3,403.00 140
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 1,157,796.16 1,032,780
Total volume of water consumpon (in kilolitres) 1,192,320.66 1,074,360
Water intensity per rupee of turnover (Water consumed / turnover) kL/INR Crore 32.03* 49.54
Water intensity (oponal) – the relevant metric may be selected by the enty
*Above is the consolidated gure for the Automove and Foundry operaons. For purposes of like-to-like comparison with Industry, please
nd below the detailing of Water Intensity for Automove operaons
Annual Report 2022-23 85
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Water Intensity for Automove operaons is 27.59 kL/INR Crore
The Water Intensity – Foundry (Water consumed in Foundry/Total revenue generated by Foundry) = 162.26 kL/INR Crore and Water Intensity
– Automove (Water Consumed in Automove Locaon/Total Revenue generated by Automove Locaon) = 27.59 kL/INR Crore
Note: Indicate if any independent assessment/ evaluaon/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
Yes, third party vericaon was carried out by DNV
4. Has the enty implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementaon.
Ashok Leyland has accomplished ‘Zero Liquid Discharge’ at all its automobile manufacturing facilies through the appropriate reuse of
Euent Treatment Plant (ETP) and Sewerage Treatment Plant (STP) discharge as per the consent to operate issued by the regulatory bodies.
5. Please provide details of air emissions (other than GHG emissions) by the enty, in the following format:
Parameter Unit FY 2022-23 FY 2021-22
NOx MT 80.21 74.25
SOx MT 19.56 45.43
Suspended Parculate maer (SPM) MT 94.25 96.65
Volale Organic Compound (VOC) MT 5.81 0.14
Parculate Maer (PM) MT 0.06 62.21
Others MT 0.77 2.06
6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:
Parameter Unit FY 2022-23 FY 2021-22
Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O,
HFCs, PFCs, SF6, NF3, if available)
Metric tonnes of CO2 equivalent 33,567.84 25,301.10
Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O,
HFCs, PFCs, SF6, NF3, if available)
Metric tonnes of CO2 equivalent 97,947.41 55,381.29
Total Scope 1 and Scope 2 emissions per rupee of turnover tCO2e/INR Crore 3.64* 3.72
*Above is the consolidated gure for the Automove and Foundry operaons. For purposes of like-to-like comparison with Industry, please
nd below the detailing of Emission Intensity for Automove operaons.
Emission Intensity for Automove operaons is 2.15 tCO2e/INR Crore
The Emission Intensity – Foundry (Emission generated in Foundry/Total revenue generated by Foundry) = 47.21 tCO2e/INR Crore
and Emission Intensity – Automove (Emission generated in Automove Locaon/Total Revenue generated by Automove Locaon) =
2.15 tCO2e/INR Crore
Note: Indicate if any independent assessment/ evaluaon/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
Yes, third party vericaon was carried out by DNV.
7. Does the enty have any project related to reducing Green House Gas emission? If Yes, then provide details.
As part of connuous contribuon/eort towards sustainable operaon, the Company has taken specic iniaves in energy conservaon,
usage of alternate/renewable resources, green energy, opmising power consumpon, etc.
During the nancial year, about 12.60 million electrical units have been saved leading to signicant savings in energy of about INR 106.98
million. This was achieved through high degree of awareness, energy audits, and power quality audit. This is a part of the Company’s Mission
Gemba Iniave. The usage of wind energy was about 20% of the total power consumpon and it was 65.03 million units and solar energy
of 37% of total power consumpon and it was 118.33 million units.
86 Ashok Leyland Limited
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8. Provide details related to waste management by the enty, in the following format:
Note: Indicate if any independent assessment/ evaluaon/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
Parameter FY 2022-23 FY 2021-22
Total Waste generated (in metric tonnes)
E-Waste (A) 10.49 12.25
Biomedical Waste (B) 0.49 0.28
Baery Waste (C) 59.98 68.62
Used oil 464.71 354.78
Miscellaneous Hazardous Waste (Process Waste, ETP sludge, etc.) (D) 2,652.90 2,112.76
Paper and Cardboard Waste (E) 4,053.52 2,759.35
Plasc Waste (F) 960.57 17,348.24
Metal Scrap (G) 32,930.12 18,886.55
Glass Waste (H) 0 0
Wood Waste (I) 2,038.15 1,572.01
Miscellaneous Non-Hazardous Waste (J) 117,254.80 146,882.19
Total (A + B + C + D + E + F + G + H + I + J) 160,441.93 189,997.03
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operaons (in metric tonnes)
Category of waste
(i) Recycled 157,791.84 187,887.02
(ii) Re-used 507.44 493.76
(iii) Co-processing 2,142.17 1,597.48
Total 160,271.78 189,978.26
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
(i) Incineraon 0.49 0.28
(ii) Landlling 0 0
(iii) Other disposal operaons 0 0
Total 0.49 0.28
Note: Indicate if any independent assessment/ evaluaon/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
Yes, third party vericaon was carried out by DNV.
9. Briey describe the waste management pracces adopted in your establishments. Describe the strategy adopted by your company to
reduce usage of hazardous and toxic chemicals in your products and processes and the pracces adopted to manage such wastes.
The company is commied to regularly improve its waste management iniaves at all its facilies. All plants dispose waste in compliance
with operang permits and hazardous waste authorisaon. Company engages with waste disposal facilies/waste recyclers/cement companies
aer due validaon of the vendors. As per the Company’s strategic drive to divert hazardous wastes away from landll and incineraon, a
number of recycling opons have been explored and implemented across organisaon level.
10. If the enty has operaons/oces in/around ecologically sensive areas (such as naonal parks, wildlife sanctuaries, biosphere reserves,
wetlands, biodiversity hotspots, forests, coastal regulaon zones etc.) where environmental approvals / clearances are required, please
specify details in the following format:
9 out of 11 plant locaons of Ashok Leyland are not in ecologically sensive area. However, Ennore and Ennore – Foundry plant locaons
come under the Coastal Regulaon Zone.
Sl.
No
Locaon of Operaons/Oces Type of Operaon Whether the condions of environmental approval /
clearance are being complied with? (Y/N). If no, the
reasons thereof and correcve acon taken, if any.
1 Ennore Automobile Manufacturing Yes
2 Ennore – Foundry Foundry Yes
11. Details of environmental impact assessments of projects undertaken by the enty based on applicable laws, in the current nancial year:
During the reporng period, Ashok Leyland has not conducted any environment impact assessment.
Name and brief
details of project
EIA Nocaon
No.
Date Whether conducted by
independent external
agency (Y/N)
Results communicated
in public domain
(Y/N)
Relevant Web link
Not Applicable
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12. Is the enty compliant with the applicable environmental law/ regulaons/ guidelines in India; such as the Water (Prevenon and Control
of Polluon) Act, Air (Prevenon and Control of Polluon) Act, Environment protecon act and rules thereunder (Y/N). If not, provide
details of all such non-compliances, in the following format:
During the reporng period, there were no cases of non-compliance to applicable laws, regulaons, guidelines in India. The Company is
complying with all applicable environmental law/regulaons/guidelines in India such as Water (Prevenon and Control of Polluon) Act, Air
(Prevenon and Control of Polluon) Act, Environment Protecon Act, and rules thereunder.
Sl.
No.
Specify the law/regulaon/
guidelines which was not
complied with
Provide the details of the
non-compliance
Any nes/ penales/acon taken by
regulatory agencies such as polluon
control boards or by courts
Correcve acon taken,
if any
Not Applicable
Leadership Indicators
1. Provide break-up of the total energy consumed (in Joules or mulples) from renewable and non-renewable sources, in the following format:
Parameter FY 2022-23 FY 2021-22
From renewable sources (in GJ)
Total electricity consumpon (A) - 000’ GJ 657.03 634.87
Total fuel consumpon (B) - 000’ GJ 0 0
Energy consumpon through other sources© 0 0
Total energy consumed from renewable sources (A+B+C) - 000’ GJ 657.03 634.8
From non-renewable sources (in GJ)
Total electricity consumpon (D) - 000’ GJ 471.91 252.37
Total fuel consumpon (E) - 000’ GJ 492.59 367.76
Energy consumpon through other sources (F) 0 0
Total energy consumed from non-renewable sources (D+E+F) - 000’ GJ 964.50 620.13
Note: Indicate if any independent assessment/ evaluaon/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
Yes, third party vericaon was carried out by DNV
2. Provide the following details related to water discharged:
Parameter FY 2022-23 FY 2021-22
Water discharge by desnaon and level of treatment (in kilolitres)
(i) To Surface water 0 0
- No treatment
With treatment – please specify level of treatment
(ii) To Groundwater 0 0
With treatment – please specify level of treatment
(iii) To Seawater 0 0
- No treatment
With treatment – please specify level of treatment
(iv) Sent to third-pares 0 0
- No treatment
With treatment – please specify level of treatment
(v) Others 0 0
- No treatment
With treatment – Terary Treatment
Total water discharged (in kilolitres) 0 0
The water discharge of the Company is treated through ETP plant and is used for gardening and other ulisaon purpose.
Note: Indicate if any independent assessment/ evaluaon/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
Yes, third party vericaon was carried out by DNV
88 Ashok Leyland Limited
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3. Water withdrawal, consumpon and discharge in areas of water stress (in kilolitres):
For each facility / plant located in areas of water stress, provide the following informaon:
(i) Name of the area: Ennore, Bhandara, Sriperumbudur, Alwar, Hosur, Pantnagar
(ii) Nature of operaons: Automobile Manufacturing and Foundry Operaons
(iii) Water withdrawal, consumpon and discharge in the following format:
Parameter FY 2022-23 FY 2021-22
Water withdrawal by source (in kilolitres)
(i) Surface water 8,601 0
(ii) Groundwater 640,385 481,920
(iii) Third party water 505,407.16 550,730
(iv) Seawater / desalinated water 0 0
(v) Others 3,403 140
Total volume of water withdrawal 1,157,796.16 1,032,780
(in kilolitres)
Total volume of water consumpon 1,192,320.66 1,032,780
(in kilolitres)
Water intensity per rupee of turnover (Water consumed / turnover) kL/INR Crore 32.03 49.54
Water intensity (oponal) – the relevant metric may be selected by the enty
Water discharge by desnaon and level of treatment (in kilolitres)
(i) Into Surface water 0 0
- No treatment
With treatment – please specify level of treatment
(ii) Into Groundwater 0 0
- No treatment
With treatment – please specify level of treatment
(iii) Into Seawater 0 0
- No treatment
With treatment – please specify level of treatment
(iv) Sent to third-pares 0 0
- No treatment
With treatment – please specify level of treatment
(v) Others 0 0
- No treatment
With treatment – please specify level of treatment
Total water discharged (in kilolitres) 0 0
Note: Indicate if any independent assessment/ evaluaon/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency.
Yes, third party vericaon was carried out by DNV.
4. Please provide details of total Scope 3 emissions & its intensity, in the following format:
Parameter Unit FY 2022-23 FY 2021-22
Total Scope 3 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs,
PFCs, SF6, NF3, if available)
Metric tonnes of CO2
equivalent
133,897.15 43,961.24
Total Scope 3 emissions per rupee of turnover tCO2e/INR Crore 3.70 2.03
Total Scope 3 emission intensity (oponal) – the relevant metric may be
selected by the enty
Note: Indicate if any independent assessment/ evaluaon/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
Yes, third party vericaon was carried out by DNV.
Annual Report 2022-23 89
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
5. With respect to the ecologically sensive areas reported at Queson 10 of Essenal Indicators above, provide details of signicant direct
& indirect impact of the enty on biodiversity in such areas along-with prevenon and remediaon acvies.
9 out of 11 plant locaons of Ashok Leyland are not in ecologically sensive area. However, Ennore and Ennore – Foundry plant locaon
come under the Coastal Regulaon Zone.
6. If the enty has undertaken any specic iniaves or used innovave technology or soluons to improve resource eciency, or reduce
impact due to emissions / euent discharge / waste generated, please provide details of the same as well as outcome of such iniaves,
as per the following format:
Wood intensity reducon:
Usage of wood has been signicantly reduced across Plants from 11.83 kg/HECU in FY22 to 9.91 kg/HECU in FY23 (16% reducon) at vehicle
manufacturing plants and 1.19 kg/MT in FY22 to 0.77 kg/MT in FY23 (36% reducon) at foundry division enabled by reusable, recycled Steel
Pallets.
Water Conservaon:
Ashok Leyland is a ‘Water Posive’ Company cered by M/s DNV
All the manufacturing plants of the Company follow Zero liquid discharge process
Ground water consumpon has been minimized across all manufacturing units by implemenng Rainwater Harvesng and other water
eciency improvements.
Around 65% of the fresh water consumed is recovered through Sewage/Euent Treatment/Zero Liquid Discharge. Plants put the
treated water into use both for inland gardening as well as process applicaons.
Facility created near the buildings having ltering systems to capture roof top rainwater and pumped to the overhead tank for use.
7. Does the enty have a business connuity and disaster management plan? Give details in 100 words/ web link.
Ashok Leyland has a Business connuity plan and Disaster recovery plan with respect to Informaon technology with the objecve
- To ensure IT connuity and availability of crical systems and services.
- To ensure that the condenality and integrity of crical informaon is not compromised during a disaster or recovery process
- To idenfy the systems, resources and funcons necessary for connued operaons in the event of disaster
- To execute an established plan to resume normal services within predened me limit upon a disaster
- To minimize the operaonal impact to various stake holders within and outside the enterprise including dealerships, channel partners,
supplier and current / prospecve customers thereby enhancing the condence in Ashok Leyland.
IT Business connuity plan and Disaster recovery plan is available in the company intranet portal. A similar business connuity plan and
disaster recovery plan is also available for Corporate oce.
In future Ashok Leyland is planning to develop a business connuity and disaster management plan at organisaon level.
8. Disclose any signicant adverse impact to the environment, arising from the value chain of the enty. What migaon or adaptaon
measures have been taken by the enty in this regard.
Ashok Leyland currently have not conducted any environmental impact assessment.
9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.
21%
90 Ashok Leyland Limited
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
PRINCIPLE 7 Businesses, when engaging in inuencing public and regulatory policy, should do so in a manner that is responsible and transparent
1. a. Number of aliaons with trade and industry chambers/ associaons.
Ashok Leyland is an acve member of CII, SIAM, FICCI and ASSOCHAM.
b. List the top 10 trade and industry chambers/ associaons (determined based on the total members of such body) the enty is a
member of/ aliated to.
S.
No.
Name of the trade and industry chambers/ associaons Reach of trade and industry chambers/
associaons (State/Naonal)
1 Federaon of Indian Chambers of Commerce and Industry (FICCI) Naonal and Internaonal
2 Confederaon of Indian Industry (CII) Naonal and Internaonal
3 The Associated Chambers of Commerce & Industry of India (ASSOCHAM) Naonal and Internaonal
4 Society of Indian Automobile Manufacturers (SIAM) Naonal and Internaonal
5 Automobile Components Manufacturer Associaon (ACMA) Naonal
6 Federaon of Automobile Dealers Associaon Naonal
7 Society of Indian Defence Manufacturers (SIDM) Naonal
2. Provide details of correcve acon taken or underway on any issues related to an-compeve conduct by the enty, based on adverse
orders from regulatory authories.
Not Applicable since there were no cases of an-compeve conduct by Ashok Leyland in FY 2022-23.
Leadership Indicators
1. Details of public policy posions advocated by the enty:
Ashok Leyland works closely with various trade and industry associaons including industry representaons to the government and
regulators. The Company ensure that policy advocacy is carried out in a transparent and responsible manner taking into account its larger
naonal interest.
PRINCIPLE 8 Businesses should promote inclusive growth and equitable development
Essenal Indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the enty based on applicable laws, in the current nancial year.
Social impact assessments have been conducted by the Madras School of Economics. The Impact assessment indicates posive outcomes in
terms of the learning level improvement among the children and also a posive outlook towards the organizaon
2. Provide informaon on project(s) for which ongoing Rehabilitaon and Reselement (R&R) is being undertaken by your enty, in the
following format:
There have been no projects for which ongoing Rehabilitaon and Reselement (R&R) is being undertaken by Ashok Leyland.
3. Describe the mechanisms to receive and redress grievances of the community.
The iniaves of the Company are focused on the areas of educaon, health, and water in underserved communies based on their
needs. Communies and NGOs can reach out to the Company through emails and corporate inbox [email protected]om for any
grievances.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
FY 2022-23 FY 2021-22
Directly sourced from MSMEs/
small producers
Total producon vendor code count: 1,049; total business spend:
INR 26,500 Crore
Total MSME vendors with MSME cercaon (producon vendors): 52
with a business spend of INR 71 Crore
For small vendors considered < INR 5 Crore business spend with AL as below;
Vendor count: 550 with spend < 5 Crore (also includes 52 MSME
vendors) and their business spend is INR 751 Crore
% input material (parts) sourced from 550 small/MSME = 2.8%
% Input material (parts) sourced from 52 MSME alone = 0.26%
NA
Sourced directly from within the
district and neighbouring districts
NA NA
*NA- Not Available
Annual Report 2022-23 91
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
Leadership Indicators
1. Provide details of acons taken to migate any negave social impacts idened in the Social Impact Assessments (Reference: Queson
1 of Essenal Indicators above):
There were no negave social impacts idened in the Social Impact Assessment.
2. Provide the following informaon on CSR projects undertaken by your enty in designated aspiraonal districts as idened by
government bodies:
S.
no
State Aspiraonal District Amount spent (in INR)
1 Jammu & Kashmir, Uarakhand AL’s CSR intervenons are carried out in
Aspiraonal District (Baramulla, Kupwara
& Udham Singh Nagar – 3 districts)
INR 87 lakhs
3.
a. Do you have a preferenal procurement policy where you give preference to purchase from suppliers comprising marginalized /
vulnerable groups? (Yes/No)
No, Ashok Leyland current does not have preferenal procurement policy.
b. From which marginalized /vulnerable groups do you procure?
Not Applicable
c. What percentage of total procurement (by value) does it constute?
Not Applicable
The criteria for procurement are quality, cost, and delivery performance, the Company gives preference to diversied supply chain
partners which includes MSMEs and small-scale vendors. The Company is engaged with total of 52 MSME vendors with MSME
cercaon (producon vendors), with business spend of INR 71 Crores. While with 550 vendors (with spend < INR 5 Crores) inclusive
of 52 MSME vendors and their business spend is INR 751 Crores.
4. Details of the benets derived and shared from the intellectual properes owned or acquired by your enty (in the current nancial
year), based on tradional knowledge:
S.
No.
Intellectual Property based
on tradional knowledge
Owned/Acquired
(Yes/No)
Benet shared
(Yes/No)
Basis of calculang
benet share
NA NA NA NA
*NA- Not Applicable
5. Details of correcve acons taken or underway, based on any adverse order in intellectual property related disputes wherein usage of
tradional knowledge is involved.
The Company did not have any cases of intellectual property related disputes in FY 2022-23.
6. Details of beneciaries of CSR Projects:
S.
No.
CSR Project No. of persons beneed from CSR Projects % of beneciaries from vulnerable and
marginalized groups
1 1. Educaon
1.1 Road To School
1.2 Road To Livelihood
1,14,000+ Government School Students from
2
nd
to 8
th
grade.
36,000+ Government School students from 9
th
to 12
th
grade
In all the intervenons by the Company
more than 80% of the beneciaries belong
to the underserved and marginalized
communies.
2 Water Iniaves 10,000 + Community People
92 Ashok Leyland Limited
PRINCIPLE 9 Businesses should engage with and provide value to their consumers in a responsible
Essenal Indicators
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Towards gathering customer queries, opinions, or feedback, Ashok Leyland has established a comprehensive aer-sales service which includes
mediums such as a 24X7 call center toll-free number, website, social media, and so on. The Company ensures to pay careful aenon to its
customer’s feedback and opinions. Along with this, a dedicated complaint management system is also put in place to help monitor as well
as facilitate swi resoluon of customer complaints and a mechanism for gathering customer queries, opinions, and feedback.
M&HCV queries: 1800-266-3340, Timing: 24*7 (Everyday)
LCV queries: 1800-1022-666, Timing: 6 am to 10 pm
Power Soluons inquiries: 1800-419-19216 Toll-free
Timing: 6 am to 10 pm (every day)
Apart from the above, queries are also captured from the ocial Twier handle of Ashok Leyland @ALIndiaOcal and tracked for resoluon
2. Turnover of products and/ services as a percentage of turnover from all products/service that carry informaon about:
As a percentage of total turnover
Environmental and social parameters relevant to the product 100% (All products complying with the mandated emission norms)
Safe and responsible usage 100% (CMVR compliance)
Recycling and/or safe disposal Not Available
3. Number of consumer complaints in respect of the following:
FY 2022-23 FY 2021-22
Received
during the
year
Pending
resoluon at
end of year
Remarks Received
during the
year
Pending
resoluon at
end of year
Remarks
Data privacy 0 0 - 0 0 -
Adversing 0 0 - 0 0 -
Cyber-security 0 0 - 0 0 -
Delivery of essenal 0 0 - 0 0 -
services 0 0 - 0 0 -
Restricve Trade Pracces 0 0 - 0 0 -
Unfair Trade Pracces 01 01 Complaints
related to DTI
0 0 -
Other 1040 178 - 780 96 -
In the regular course of business, the Company receives and resolves all its consumer queries in a mely manner. Currently, there are no
ligaons in respect of the enlisted maers.
4. Details of instances of product recalls on account of safety issues:
Number Reasons for recall
Voluntary recalls 0 NA
Forced recalls 0 NA
*NA-Not Applicable
5. Does the enty have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link
of the policy.
Yes, Ashok Leyland has an Informaon Security policy in place and it is available to all employees in the intranet portal.
6. Provide details of any correcve acons taken or underway on issues relang to adversing, and delivery of essenal services; cyber
security and data privacy of customers; re-occurrence of instances of product recalls; penalty/acon taken by regulatory authories on
the safety of products/services.
For FY 2022-23, there were no complaints received for issues pertaining to the delivery of essenal services, adversing, or acon taken by
regulatory authories on the safety of products/services.
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
Annual Report 2022-23 93
Leadership Indicators
1. Channels / plaorms where informaon on products and services of the enty can be accessed (provide web link, if available).
Informaon related to all the products and services can be found on the Company website: www.ashokleyland.com
2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
As part of Driver training, the following steps are undertaken:
Develop sector-specic skills of rural youth towards making them employable/self-employed. Develop a fresh cadre of high-quality drivers
to meet the demand for driving professionals, inculcate trac discipline, insll good driving pracces resulng in a reducon of fuel
consumpon to save petroleum products, and improve Road Safety awareness thereby reducing accidents.
Training imparted as per regulaons of MV Rules and Act
- Tesng & evaluaon done before issuing of the cercate
- Process adherence to ISO standards
Mechanics and dealer personnel also go through a robust training program as part of the Company Service Training Centers
3. Mechanisms in place to inform consumers of any risk of disrupon/disconnuaon of essenal services.
Not Applicable
4. Does the enty display product informaon on the product over and above what is mandated as per local laws? (Yes/No/Not Applicable)
If yes, provide details in brief. Did your enty carry out any survey with regard to consumer sasfacon relang to the major products
/ services of the enty, signicant locaons of operaon of the enty or the enty as a whole? (Yes/No)
The details given in informaon label are as per the Legal Metrology (Packaged Commodies) Rules 2011. The Company voluntarily and
acvely informs all its dealers about product improvements through Service Circulars. It also informs the customers to operate vehicles in a
more fuel-ecient manner through ps in the Operator Manual. The spare parts label has the details of customer care number, exclusive
e-mail ID and contact address, where consumers can reach out to the execuves to share their feedback or updates or grievances. Besides
this, consumers can also log on to the website of the Company give their feedback or register complaints. The Company conducts periodic
training sessions on product genuineness through their Mechanic and Retailer Meets. The spare parts team also conducts raids on vendors
selling spurious products and circulates such inputs among the consumers and urges them to remain vigilant and use only genuine parts.
The Company commissions reputable third-party agencies to conduct annual surveys for measuring the customer sasfacon index.
5. Provide the following informaon relang to data breaches:
a. Number of instances of data breaches along-with impact
No instances of data breaches were recorded in FY 2022-23.
b. Percentage of data breaches involving personally idenable informaon of customers
No instances of data breaches were recorded in FY 2022-23.
ANNEXURE K TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
94 Ashok Leyland Limited
INDEPENDENT AUDITORS’ REPORT
Standalone
To the Members of Ashok Leyland Limited
Report on the Audit of the Standalone nancial statements
Opinion
1. We have audited the accompanying standalone nancial
statements of Ashok Leyland Limited (“the Company”), which
comprise the Balance Sheet as at March 31, 2023, and the
Statement of Prot and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and the
Statement of Cash Flows for the year then ended, and notes
to the standalone nancial statements, including a summary of
signicantaccounngpoliciesandotherexplanatoryinformaon.
2. In our opinionand to thebest ofour informaonand according
totheexplanaonsgiventous,theaforesaidstandalonenancial
statementsgivethe informaonrequiredby the CompaniesAct,
2013 (“the Act”) in the manner so required and give a true and
fair view in conformity with the accounng principles generally
accepted in India, of the state of aairs of the Company as at
March 31, 2023, and total comprehensive income (comprising of
prot and other comprehensive loss), changes in equity and its
cashows forthe yearthen ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on
Auding (SAs) specied under Secon 143(10) of the Act. Our
responsibilies under those Standards are further described in
the “Auditor’s Responsibilies for the Audit of the standalone
nancial statements” secon of our report. We are independent
of the Company in accordance with the Code of Ethics issued by
the Instute of Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of the standalone
nancial statements under the provisions of the Act and the Rules
thereunder, and we have fullled our other ethical responsibilies
in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence we have obtained is sucient and
appropriate to provide a basis for our opinion.
Key audit maers
4. Key audit maers are those maers that, in our professional
judgment,wereofmostsignicanceinourauditofthestandalone
nancial statements of the current period. These maers were
addressedinthecontextofouraudit ofthestandalonenancial
statements as a whole and in forming our opinion thereon, and
wedo not providea separateopinionon these maers.
Key audit maer How our audit addressed the key audit maer
I. Impairment
a. Carrying value of Investments in equity instruments of
subsidiaries, joint ventures and associates
(Refer to Note 1B.17, Note 1B.11 and Note 1C to the standalone
nancial statements regarding the recognion, valuaon and
disclosure methods of equity instruments in subsidiaries,
joint ventures and associates, ‘Impairment Losses’ and
‘Crical accounng judgements and key sources of esmaon
uncertainty’ respecvely)
In the standalone nancial statements of the Company, the
gross carrying value of equity investments in subsidiaries, joint
ventures and associates is ` 3,971.74 crores against which
a cumulave provision for impairment of ` 515.62 crores is
carried as at March 31, 2023.
Determinaon of carrying value of investments is a key audit
maerastheamountsaresignicanttothestandalonenancial
statements and the determinaon of recoverable value and /
or impairment assessment involves signicant management
judgement.
The key inputs and judgements involved in the model for
impairmentassessmentofinvestmentsincludefuturecashows
of the respecve enes, the discount rate and the long-term
growth rates used.
As part of our audit, our procedures included the following:
● We obtained an understanding and assessed the design,
implementaon and operang eecveness of management’s
relevant internal controls to idenfy whether there are any
indicators of impairment and where such indicators exists,
the method by which the recoverable amount is determined
by the management. Specically, we focused on management
controls to conclude on the appropriateness of future cash
ows(includingterminalcashow)andkeyassumponsusedin
arriving at the recoverable amount and fair value, as applicable.
● We evaluated the following:
- Terminal growth rate by comparing with the long-term
outlook based on the relevant macroeconomic outlook
forthe geography in which theenes areoperang.
- Board approved budgets considering growth and other
cash ow projecons provided by the Company’s
management and compared these with the actual results
of earlier years to assess the appropriateness of forecast.
- The competence, capabilies and objecvity of the
management’s expertinvolvedin the valuaonprocess.
AnnualReport 2022-23 95
INDEPENDENT AUDITORS’ REPORT
Key audit maer How our audit addressed the key audit maer
b. Fair value of investments in other equity and in preference
instruments
(Refer to Note 1B.17 and Note 1C to the standalone nancial
statements regarding the recognion, valuaon and disclosure
methodsofequityinstrumentsinothers’and‘Cricalaccounng
judgements and key sources of esmaon uncertainty’
respecvely)
In the standalone nancial statements of the Company,
Investment in other equity and preference share instruments are
` 174.79 crores and ` 236.62 crores respecvely, carried at fair
value,and whereno listedprice in an acvemarketis available.
The valuaonofthese otherequity instrumentsand preference
share investments are a key audit maer as the determinaon
of fair value involves signicant management judgement as no
acvemarket,observableinputs are available.
The key inputs and judgements involved in the model for fair
value assessment of investments include future cash ows of
the respecve enes, the discount rate and the long-term
growth rates used.
● We along with the auditors’ experts evaluated the
appropriateness of the measurement model and reasonableness
ofkeyassumpons liketerminalgrowth rate and discountrate.
● We performed sensivity tests on the model by analysing the
impact of using other possible growth rates and discount rates
within a reasonable and foreseeable range.
● We evaluated the adequacy of the disclosures made in the
standalonenancial statements.
Based on the above proceduresperformed, we did not idenfy
any signicant excepons in the management’s assessment
in relaon to the carrying value of equity investments in
subsidiaries, joint ventures, and associates, fair value of
investment in other equity instruments and that of fair value of
investment in preference instruments and the related disclosures
thereof.
II. Assessment of provision for warranty obligaon
(Refer to Note 1B.14, Note 1.19, Note 1.25 and Note 1C to
the standalone nancial statements regarding the ‘Provisions
- Warranes’ for recognion and valuaon methods,
Non-CurrentProvisions and CurrentProvisions respecvely, and
‘Crical accounng judgements and key sources of esmaon
uncertainty- Provisionforproduct warranty’ respecvely)
In the standalone nancial statements, the Company has
recognised a provision of `652.32croresforwarrantyobligaons
as on March 31, 2023.
We determined this maer as key audit maer since the
product warranty obligaons and esmaons thereof are
determined by management using a model which incorporates
historicalinformaon onthetype ofproduct,nature,frequency
and average cost of warranty claims, the esmates regarding
possible future incidences of product failures and discount rate.
Changesinesmatedfrequencyandamountof futurewarranty
claimscan materiallyaectwarrantyexpenses.
As part of our audit, our procedures included the following:
● We obtained an understanding and assessed the design,
implementaon and operang eecveness of management’s
relevant internal controls with regards to the appropriateness
of recording of warranty claims, provisioning of warranty, and
the periodic review of provision created.
● We veried the appropriateness of the process and controls
around IT systems as established by the management.
Specically, we focused on controls around periodic review
of warranty provision and that of the appropriateness and
adequacy of provision.
● We evaluated the model used by the management for provisioning
of warranty to evaluate the appropriateness of the methodology
followedbythemanagementandthemathemacalaccuracyof
themodel. Tothis eect,we evaluated the following:
- the inputs tothe model on asample basis
- esmaon of expected paern of future claims and
esmatedreplacement cost
- computaonof provisionforwarrantycosts
- computaonfordeterminingthepresentvalueinthecase
ofwarrantyforperiods exceedingone year
- management’s esmaon process by performing a look-
back analysis for warranty costs accruals made in prior
year
● We evaluated the adequacy of the disclosures made in the
standalonenancial statements.
Based on the above audit procedures performed, we did not note
any material excepons with regard to the management assessment
of provision for warranty costs and the related disclosures thereof.
96 Ashok Leyland Limited
Other Informaon
5. The Company’s Board of Directors is responsible for the other
informaon. The other informaon comprises the informaon
included in the Annual report (i.e. Board’s report, Report on
Corporate Governance and Management discussion and Analysis
report),butdoesnotincludethestandalonenancialstatements
and our auditors’ report thereon.
Our opinion on the standalone nancial statements does not
coverthe other informaon and we do not expressany formof
assurance conclusion thereon.
In connecon with our audit of the standalone nancial
statements, our responsibility is to read the other informaon
and, in doing so, consider whether the other informaon is
materially inconsistent with the standalone nancial statements
or our knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement
ofthis other informaon,weare requiredto reportthat fact.
We have nothing to report in this regard.
Responsibilies of management and those charged with governance
for the standalone nancial statements
6. The Company’s Board of Directors is responsiblefor the maers
statedinSecon134(5)oftheActwithrespecttothepreparaon
ofthesestandalonenancialstatementsthatgiveatrueandfair
view of the nancial posion, nancial performance, changes
in equity and cash ows of the Company in accordance with
the accounng principles generally accepted in India, including
the Accounng Standards specied under Secon 133 of the
Act. This responsibility also includes maintenance of adequate
accounng records in accordancewith the provisions of the Act
forsafeguardingoftheassetsoftheCompanyandforprevenng
and detecng frauds and other irregularies; selecon and
applicaonofappropriateaccounngpolicies;makingjudgments
and esmates that are reasonable and prudent; and design,
implementaon and maintenance of adequate internal nancial
controls, that were operang eecvely for ensuring the
accuracy and completeness of the accounng records, relevant
to the preparaon and presentaon of the standalone nancial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
7. Inpreparingthestandalonenancialstatements,managementis
responsible for assessing the Company’s ability to connue as a
goingconcern, disclosing, asapplicable, maersrelated to going
concern and using the going concern basis of accounng unless
management either intends to liquidate the Company or to cease
operaons,orhasnorealiscalternavebuttodoso.TheBoard
of Directors are also responsible for overseeing the Company’s
nancialreporng process.
Auditor’s responsibilies for the audit of the standalone nancial
statements
8. Ourobjecvesaretoobtainreasonableassuranceaboutwhether
the standalone nancial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that
an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
intheaggregate,theycouldreasonablybeexpectedtoinuence
the economic decisions of users taken on the basis of these
standalonenancial statements.
9. As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional scepcism
throughout the audit. We also:
● Idenfy and assess the risks of material misstatement of
thestandalone nancial statements, whether due tofraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sucient
and appropriate to provide a basis for our opinion. The
risk of not detecng a material misstatement resulng
from fraud is higher than for one resulng from error, as
fraudmay involve collusion, forgery, intenonal omissions,
misrepresentaons, or theoverride of internalcontrol.
● Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under Secon 143(3)(i)
of the Act, we are also responsible for expressing our
opinion on whether the company has adequate internal
nancial controls with reference to standalone nancial
statementsinplaceandtheoperangeecvenessofsuch
controls.
● Evaluate the appropriateness of accounng policies used
and the reasonableness of accounng esmates and
related disclosures made by management.
● Conclude on the appropriateness of management’s use of
the going concern basis of accounng and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or condions that may cast
signicantdoubtontheCompany’sabilitytoconnueasa
going concern. If we conclude that a material uncertainty
exists, we are required to draw aenon in our auditors’
reporttotherelateddisclosuresinthestandalonenancial
statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditors’
report. However, future events or condions may cause
theCompany tocease to connueas a goingconcern.
● Evaluate the overall presentaon, structure and content
of the standalone nancial statements, including the
disclosures, and whether the standalone nancial
statements represent the underlying transacons and
eventsin amanner that achievesfairpresentaon.
10. We communicate with those charged with governance regarding,
amongothermaers,theplannedscopeandmingoftheaudit
andsignicantauditndings,includinganysignicantdeciencies
ininternal controlthatwe idenfyduring our audit.
INDEPENDENT AUDITORS’ REPORT
AnnualReport 2022-23 97
INDEPENDENT AUDITORS’ REPORT
11. We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all
relaonshipsand other maersthat mayreasonably be thought
to bear on our independence, and where applicable, related
safeguards.
12. From the maers communicated with those charged with
governance, we determine those maers that were of most
signicance in the audit of the standalone nancial statements
of the current period and are therefore the key audit maers.
We describe these maers in our auditors’ report unless law
or regulaon precludes public disclosure about the maer or
when, in extremely rare circumstances, we determine that a
maer should not be communicated in our report because the
adverseconsequencesofdoingsowouldreasonablybeexpected
tooutweigh the publicinterestbenets ofsuch communicaon.
Report on other legal and regulatory requirements
13. As required by the Companies (Auditor’s Report) Order, 2020
(“the Order”), issued by the Central Government of India in
termsofsub-secon(11)ofSecon143oftheAct,wegiveinthe
AnnexureBastatementonthemaersspeciedinparagraphs3
and4 of the Order, tothe extentapplicable.
14. Asrequiredby Secon 143(3)of the Act, wereport that:
(a) We have sought and obtained all the informaon and
explanaonswhichtothebestofourknowledgeandbelief
were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law
have been kept by the Company so far as it appears from
ourexaminaonof those books.
(c) The Balance Sheet, the Statement of Prot and Loss
(including other comprehensive income), the Statement of
Changes in Equity and the Statement of Cash Flows dealt
with by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid standalone nancial
statementscomplywiththeAccounngStandardsspecied
underSecon 133 of the Act.
(e) On the basis of the wrien representaons received from
the directors as on March 31, 2023 taken on record by the
Board of Directors,none of the directors is disqualied as
on March 31, 2023 from being appointed as a director in
termsof Secon 164(2) ofthe Act.
(f) With respect to the adequacy of the internal nancial
controls with reference to standalone nancial statements
of the Company and the operang eecveness of such
controls,refertoour separateReportin “Annexure A”.
(g) With respect to the other maers to be included in
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014 (as amended),
in our opinion and to the best of our informaon and
accordingtothe explanaonsgiven tous:
i. The Company has disclosed the impact of pending
ligaons on its nancial posion in its standalone
nancial statements – Refer Note 3.9 to the
standalonenancial statements.
ii. The Company was not required to recognise a
provision as at March 31, 2023 under the applicable
laworaccounngstandards,asitdoesnot haveany
material foreseeable losses on long-term contract
including derivave contracts.
iii. There has been no delay in transferring amounts,
requiredtobetransferred, tothe InvestorEducaon
and Protecon Fund by the Company during the
year.
iv. (a) The management has represented that, to the
best of its knowledge and belief, as disclosed
in the notes to the accounts, no funds have
been advanced or loaned or invested (either
from borrowed funds or share premium or any
other sources or kind of funds) by the Company
to or in any other person(s) or enty(ies),
including foreign enes (“Intermediaries”),
with the understanding, whether recorded in
wring or otherwise, that the Intermediary
shall, whether, directly or indirectly, lend or
invest in other personsor enes idened in
any manner whatsoever by or on behalf of the
Company (“Ulmate Beneciaries”) or provide
any guarantee, security or the like on behalf of
the Ulmate Beneciaries (Refer Note 3.19 to
thestandalone nancialstatements);
(b) The management has represented that, to
the best of its knowledge and belief, as
disclosed in the notes to the accounts, no
funds have been received by the Company
from any person(s) or enty(ies), including
foreign enes (“Funding Pares”), with the
understanding, whether recorded in wring or
otherwise, that the Company shall, whether,
directly or indirectly, lend or invest in other
persons or enes idened in any manner
whatsoever by or on behalf of the Funding
Party (“Ulmate Beneciaries”) or provide any
guarantee, security or the like on behalf of the
Ulmate Beneciaries (Refer Note 3.19 to the
standalonenancial statements); and
(c) Based on such audit procedures that we
considered reasonable and appropriate in
the circumstances, nothing has come to our
noce that has caused us to believe that the
representaons under sub-clause (a) and (b)
contain any material misstatement.
98 Ashok Leyland Limited
v. The dividend declared and paid during the year by
the Company is in compliance with Secon 123 of
the Act.
vi. As proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 (as amended), which provides for books
of account to have the feature of audit trail, edit
log and related maers in the accounng soware
used by the Company, is applicable to the Company
only with eect from nancial year beginning
April 1, 2023, the reporng under clause (g) of
Rule 11 of the Companies (Audit and Auditors) Rules,
2014 (as amended), is currently not applicable.
15. The Company has paid / provided for managerial remuneraon
in accordance with the requisite approvals mandated by the
provisionsof Secon 197read with Schedule Vto the Act.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraonNumber: 304026E/E-300009
A.J.Shaikh
Partner
Membership Number : 203637
UDIN: 23203637BGXOZF6371
Place : Chennai
Date : May 23, 2023
INDEPENDENT AUDITORS’ REPORT
AnnualReport 2022-23 99
ANNEXURE A TO INDEPENDENT AUDITORS’ REPORT
Referred to in paragraph 14 (f) of the Independent Auditors’ Report of even date to the members of Ashok Leyland Limited on the standalone
nancial statements for the year ended March 31, 2023
Report on the Internal Financial Controls with reference to Financial Statements under clause (i) of sub-secon 3 of Secon 143 of the Act
1. Wehaveauditedtheinternalnancialcontrolswithreferenceto
nancial statements of Ashok Leyland Limited (“the Company”)
as of March 31, 2023
in conjuncon with our audit of the
standalone nancial statements of the Company for the year
ended on that date.
Management’s Responsibility for Internal Financial Controls
2. The Company’s management is responsible for establishing and
maintaining internal nancial controls based on the internal
control over nancial reporng criteria established by the
Company considering the essenal components of internal
control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporng (“the Guidance Note”) issued
by the Instute of Chartered Accountants of India (“ICAI”).
These responsibilies include the design, implementaon and
maintenance of adequate internal nancial controls that were
operang eecvely for ensuring the orderly and ecient
conduct of its business, including adherence to company’s
policies, the safeguarding of its assets, the prevenon and
detecon of frauds and errors, the accuracy and completeness
ofthe accounngrecords,andthe melypreparaonofreliable
nancialinformaon,as requiredunder the Act.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on the Company’s
internal nancial controls with reference to nancial statements
based on our audit. We conducted our audit in accordance with
the Guidance Note and the Standards on Auding deemed to
be prescribed under Secon 143(10) of the Act to the extent
applicable to an audit of internal nancial controls, both
applicable to an audit of internal nancial controls and both
issued by the ICAI. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether
adequate internal nancial controls with reference to nancial
statements was established and maintained and if such controls
operated eecvelyin allmaterial respects.
4. Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal nancial controls
system with reference to nancial statements and their
operang eecveness. Our audit of internal nancial controls
with reference to nancial statements included obtaining an
understanding of internal nancial controls with reference to
nancialstatements,assessing therisk that a materialweakness
exists, and tesng and evaluang the design and operang
eecveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement
ofthe nancial statements,whether due tofraud orerror.
5. Webelievethattheauditevidencewehaveobtainedissucient
and appropriate to provide a basis for our audit opinion on the
Company’s internal nancial controls system with reference to
nancialstatements.
Meaning of Internal Financial Controls with reference to nancial
statements
6. Acompany’sinternalnancialcontrolswithreferencetonancial
statements is a process designed to provide reasonable assurance
regardingthereliabilityofnancialreporngandthepreparaon
of nancialstatementsforexternalpurposes in accordance with
generally accepted accounng principles. A company’s internal
nancial controlswith referenceto nancial statements includes
those policies and procedures that (1) pertain to the maintenance
ofrecordsthat, in reasonabledetail, accurately and fairlyreect
the transacons and disposions of the assets of the company;
(2) provide reasonable assurance that transacons are recorded
as necessary to permit preparaon of nancial statements in
accordance with generally accepted accounng principles, and
that receipts and expenditures of the company are being made
only in accordance with authorisaons of management and
directors of the company; and (3) provide reasonable assurance
regarding prevenon or mely detecon of unauthorised
acquision, use, or disposion of the company’s assets that
couldhavea materialeecton the nancial statements.
Inherent Limitaons of Internal Financial Controls with reference to
nancial statements
7. Because of the inherent limitaons of internal nancial controls
with reference to nancial statements, including the possibility
of collusion or improper management override of controls,
material misstatements due to error or fraud may occur and not
be detected. Also, projecons of any evaluaon of the internal
nancial controls with reference to nancial statements to
future periods are subject to the risk that the internal nancial
controls with reference to nancial statements may become
inadequatebecauseofchangesin condions,orthatthe degree
of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an
adequate internal nancial controls system with reference to
nancial statements and such internal nancial controls with
reference to nancial statements were operang eecvely as
at March 31, 2023
, based on the internal control over nancial
reporng criteria established by the Company considering
the essenal components of internal control stated in the
Guidance Note issued by ICAI.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraonNumber: 304026E/E-300009
A.J.Shaikh
Partner
Membership Number : 203637
UDIN: 23203637BGXOZF6371
Place : Chennai
Date : May 23, 2023
100 Ashok Leyland Limited
ANNEXURE B TO INDEPENDENT AUDITORS’ REPORT
Referred to in paragraph 13 of the Independent Auditors’ Report of even date to the members of Ashok Leyland Limited on the standalone
nancial statements as of and for the year ended March 31, 2023
i. (a) (A) The Company is maintaining proper records showing full parculars, including quantave details and situaon, of property,
plant and equipment.
(B) The Companyis maintainingproperrecordsshowing full parcularsof intangibleassets.
(b) The property, plant and equipment are physically veried by the management according to a phased programme designed to cover
all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the
natureof its assets. Pursuant to the programme,a poron of the property, plant and equipment has been physicallyveried by the
Managementduring the yearand no materialdiscrepancieshavebeen noced on such vericaon.
(c) The tle deeds of all the immovable properes (other than properes where the Company is the lessee and the lease agreements
areduly executed in favourof the lessee), as disclosed in Note 1.1 on property, plant and equipment and Note 1.1A on right-of-use
asset,to the standalonenancial statements, areheld in the name ofthe Company,exceptforthe following:
Descripon of
property
Gross
carrying
value
(` Crores)
Held in the name of Whether
promoter, director
or their relave
or employee
Period held
(i.e date of
capitalisaon)
Reason for not being
held in the name of the
Company
Ennore,
Tamil Nadu -
Freehold land
81.00 Hinduja Foundries Limited No Refer Note 1
below
Refer Note 1.1 of the
standalonenancial
statements
Uppal,Telangana-
Freehold land
123.00 Hinduja Foundries Limited No Refer Note 1
below
Refer Note 1.1 of the
standalonenancial
statements
Mallavalli,
AndhraPradesh-
Freehold land
13.02 Agreement for sale is
registered in the name
of the Company. Final
conveyance deed is to be
executed.
No March 2018 Refer Note 1.1 of the
standalonenancial
statements
Sriperumbudur,
Tamil Nadu -
Leasehold land
11.47 Hinduja Foundries Limited No Refer Note 1
below
Refer Note 1.1A of the
standalonenancial
statements
Pillaipakkam,
Tamil Nadu -
Leasehold land
48.96 Ashok Leyland Nissan
Vehicles Limited
No Refer Note 2
below
Refer Note 1.1A of the
standalonenancial
statements
Bhandara,
Maharashtra -
Leasehold land
0.01 Ashok Leyland Limited
(underregularisaon)
No May 1982 Refer Note 1.1A of the
standalonenancial
statements
Note 1 – Hinduja Foundries Limited (amalgamang company)merged with the Company eecve October 01, 2016 pursuant to the
orderreceivedfrom NaonalCompanyLaw Tribunal on April 24, 2017.
Note2–AshokLeylandNissanVehiclesLimited(amalgamangcompany)mergedwiththeCompanyeecveApril01,2018pursuant
tothe orderreceived fromNaonalCompany LawTribunalon December 17, 2018.
(d) The Company has chosen cost model for its property, plant and equipment (including right-of-use asset) and intangible assets.
Consequently, the queson of our commenng on whether the revaluaon is based on the valuaon by a registered valuer, or
specifying the amount of change, if the change is 10% or more in the aggregate of the net carrying value of each class of property,
plantand equipment (including right-of-useasset) or intangibleassets does notarise.
(e) Basedontheinformaonandexplanaonsfurnishedtous,noproceedingshavebeeniniatedonorarependingagainsttheCompany
for holding benami property under the Prohibion of Benami Property Transacons Act, 1988 (as amended in 2016) (formerly the
BenamiTransacons(Prohibion)Act,1988(45 of1988))andRulesmadethereunder,andthereforethequesonof ourcommenng
onwhether the Companyhas appropriatelydisclosed the detailsin its standalonenancial statementsdoes not arise.
ii. (a) ThephysicalvericaonofinventoryexcludingstockswiththirdpareshasbeenconductedatreasonableintervalsbytheManagement
during the year and, in our opinion, the coverage and procedure of such vericaon by Management is appropriate. In respect of
inventorylyingwiththirdpares,thesehavesubstanallybeenconrmedbythem.Thediscrepanciesnocedonphysicalvericaon
of inventory as compared to book records were not 10% or more in aggregate for each class of inventory.
AnnualReport 2022-23 101
(b) Duringtheyear,theCompanyhasbeensanconedworkingcapitallimitsinexcessof`5crores,inaggregate,frombanksandnancial
instuons on the basis of security of current assets. The Company has led quarterly returns or statements with such banks and
nancialinstuons, which arein agreementwith theunaudited booksof account(Also Refer Note 3.6.1to thestandalone nancial
statements).
iii. (a) The Company has made investments in four companies and eight mutual funds and granted unsecured loan to one company and
stoodguaranteetothreecompanies.The aggregate amountduring theyear, andbalance outstandingatthebalance sheetdatewith
respectto such loansor advances and guarantees or security to subsidiaries,joint venturesand associatesand to paresother than
subsidiaries, joint ventures and associates are as per the table given below:
Amount in ` Crores
Guarantees Security Loans Advances in
nature of loans
Aggregate amount during the year
Subsidiaries 463.39 - 200.00 -
JointVentures - - - -
Associates - - - -
Others - - - -
Balance outstanding as a balance sheet date
Subsidiaries 885.84 - 200.00 -
JointVentures 6.88 - - -
Associates - - - -
Others - - - -
(Also ReferNote3.8 tothe standalonenancial statements)
(b) In respect of the aforesaid investments, guarantees and loans, the terms and condions under which such loans were granted,
investments were made, guarantees provided are not prejudicial to the Company’s interest.
(c) Inrespectof theaforesaidloan,theschedule ofrepaymentofprincipaland paymentofinteresthasbeenspulated,andthe pares
arerepayingthe principal amounts,as spulated,and arealso regularin paymentof interestas applicable.
(d) In respect of the aforesaid loan, there is no amount which is overdue for more than ninety days.
(e) Following loan was granted to one step down subsidiary, which has fallen due during the year and was extended. Further, no fresh
loanswas grantedtostepdown subsidiary to selethe exisngloans / advancesin natureof loan.
Name of the pares Aggregate amount of dues
renewed or extended
(` Crores)
Percentage of the aggregate
to the total loans granted
during the year
SwitchMobility AutomoveLimited 200 100%
(Also ReferNote1.12 (e) tothe standalonenancial statements)
(f) Theloansgrantedduringtheyeartorelatedpareshadspulatedthescheduledrepaymentofprincipalandpaymentofinterestand
the same were not repayable on demand. Further there are no loans / advances in nature of loans which were granted during the
year to promoters.
iv. In our opinion, and according to the informaonand explanaonsgiven to us, the Companyhas complied with the provisions of Secons
185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it, as
applicable.
v. The Company has not accepted any deposits or amounts which are deemed to be deposits referred in Secons 73, 74, 75 and 76 of the
Actand the Rules framedthere underto the extentnoed.
vi. PursuanttotherulesmadebytheCentralGovernmentofIndia,theCompanyisrequiredtomaintaincostrecordsasspeciedunderSecon
148(1) of the Act in respect of its products. We have broadly reviewed the same and are of the opinion that, prima facie, the prescribed
accountsandrecordshavebeen madeand maintained.Wehavenot,however,made a detailedexaminaonof the records with aview to
determine whether they are accurate or complete.
ANNEXURE B TO INDEPENDENT AUDITORS’ REPORT
102 Ashok Leyland Limited
vii. (a) According to the informaon and explanaons given to us and the records of the Company examined by us, in our opinion, the
Company is regular in deposing the undisputed statutory dues, including goods and services tax, provident fund, employees’ state
insurance,incometax,salestax,servicetax,dutyofcustoms,dutyofexcise,valueaddedtax,cess,andothermaterialstatutorydues,
as applicable, with the appropriate authories. Also, Refer Note 3.9 to the standalone nancial statements regarding management’s
assessmenton certainmaersrelangto providentfund.
(b) AccordingtotheinformaonandexplanaonsgiventousandtherecordsoftheCompanyexaminedbyus,theparcularsofstatutory
duesreferredto in sub-clause (a) asat March31, 2023 which havenot beendeposited on accountof a dispute,are asfollows:
Name of the
Statute
Nature of Dues Amount
(` in crores)
Period Forum where the dispute is pending
State and Central
SalesTax Act
Salestax and
Value added Tax
111.76 Various periods from1985 - 2018 Appellate Authority upto Commissioner
Level
147.31 Various periods from1987 - 2017 AppellateAuthority - Tribunal
1.09 Various periods from2006 - 2011 High Court
CentralExciseAct,
1944
Exciseduty and
Cess thereon
4.34 Various periods from2006 - 2016 Appellate Authority upto Commissioner
Level
5.64 Various periods from1996 - 2018 AppellateAuthority - Tribunal
0.03 Various periods from1995 - 2002 High Court
Customs Act, 1962 Customs Duty 0.02 Variousperiodsfrom 2006 -2007 AppellateAuthority - Tribunal
Service Tax -
Finance Act, 1994
Service Tax and
Cess thereon
55.88 Various periods from2007 - 2016 AppellateAuthority - Tribunal
48.26 Various periods from2005 - 2017 Appellate Authority upto Commissioner
Level
Goods and
Services Tax
Goods and
Services Tax
18.89 Various periods from2017 - 2020 Appellate Authority upto Commissioner
Level
TheIncome Tax
Act, 1961
Incometax 0.37 Assessmentyear 2009- 2010 Commissionerof Income - Tax (Appeals)
3.42 Assessmentyear 2010 -2011 Commissioner ofIncome - Tax (Appeals)
-
#
Assessmentyear 2013- 2014 Commissionerof Income - Tax (Appeals)
0.15 Assessmentyear 2017 -2018 Commissioner ofIncome - Tax (Appeals)
-* Assessmentyear 2018- 2019 Commissionerof Income - Tax (Appeals)
2.90 Assessmentyear 2019 -2020 Commissioner ofIncome - Tax (Appeals)
#
Disputed amount consideredaboveis net of refundadjustedagainstearlier yearamounng to` 0.04 crores.
*Disputed amount consideredaboveis net of ` 5.92 crores paid under protest.
viii. AccordingtotheinformaonandexplanaonsgiventousandtherecordsoftheCompanyexaminedbyus,therearenotransaconsinthe
booksofaccountthathasbeensurrenderedordisclosedasincomeduringtheyearinthetaxassessmentsundertheIncomeTaxAct,1961,
that has not been recorded in the books of account.
ix. (a) According to the records of the Company examined by us and the informaon and explanaon given to us, the Company has not
defaulted in repayment of loans or other borrowings or in the payment of interest to any lender during the year.
(b) Accordingtotheinformaonandexplanaonsgiventousandonthebasisofourauditprocedures,wereportthattheCompanyhas
notbeen declared Wilful Defaulter by anybank or nancial instuonor governmentor anygovernmentauthority.
(c) According to the records of the Company examined by us and the informaon and explanaons given to us, the Company has not
obtained any term loans during the year.
(d) Accordingtotheinformaonandexplanaonsgiventous,andtheproceduresperformedbyus,andonanoverallexaminaonofthe
standalone nancial statements of the Company, we report that no funds raised on short-term basis have been used for long-term
purposes by the Company.
(e) Accordingtotheinformaonandexplanaonsgiventousandonanoverallexaminaonofthestandalonenancialstatementsofthe
Company, we report that the Companyhas not taken anyfunds from any enty or personon accountof or to meet the obligaons
of its subsidiaries, associates or joint ventures.
(f) According to the informaon and explanaons given to us and procedures performed by us, we report that the Company has not
raisedloans during theyear on thepledge of securies heldin its subsidiaries, jointventuresor associatecompanies.
x. (a) The Company has not raised any money by wayof inial public oeror further public oer (including debt instruments) during the
year. Accordingly, the reporngunder clause 3(x)(a) of theOrder is notapplicable to theCompany.
(b) The Company has not made any preferenal allotment or private placement of shares or fully or parally or oponally converble
debenturesduring theyear. Accordingly, the reporngunder clause 3(x)(b) ofthe Order is notapplicable to theCompany.
ANNEXURE B TO INDEPENDENT AUDITORS’ REPORT
AnnualReport 2022-23 103
ANNEXURE B TO INDEPENDENT AUDITORS’ REPORT
xi. (a) DuringthecourseofourexaminaonofthebooksandrecordsoftheCompany,carriedoutinaccordancewiththegenerallyaccepted
audingpraccesin India, andaccordingto theinformaonand explanaonsgivento us,we haveneithercome acrossanyinstance
of materialfraudby the Company or on the Company, noced or reportedduring the year, nor havewe been informedof any such
case by the Management.
(b) DuringthecourseofourexaminaonofthebooksandrecordsoftheCompany,carriedoutinaccordancewiththegenerallyaccepted
audingpraccesinIndia,andaccordingtotheinformaonandexplanaonsgiventous,areportundersecon143(12)oftheAct,in
FormADT-4,asprescribedunderrule13ofCompanies(AuditandAuditors)Rules,2014wasnotrequiredtobeledwiththeCentral
Government.Accordingly, the reporngunder clause 3(xi)(b) ofthe Order isnot applicable tothe Company.
(c) DuringthecourseofourexaminaonofthebooksandrecordsoftheCompanycarriedoutinaccordancewiththegenerallyaccepted
auding praccesin India, and accordingto the informaonand explanaons given tous, the Companyhas received whistle-blower
complaintsduring the year,which havebeen consideredby us foranybearing on our audit andreporng under this clause.
xii. As the Companyis not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the reporng under clause 3(xii) of the Order
is not applicable to the Company.
xiii. The Companyhas enteredintotransaconswith relatedpares in compliancewith the provisionsofSecons 177 and 188of the Act.The
details of such related party transacons have been disclosed in the standalone nancial statementsas required under Indian Accounng
Standard24 “Related PartyDisclosures” specied underSecon 133 of the Act.
xiv. (a) Inouropinionandaccordingtotheinformaonandexplanaongiventous,theCompanyhasaninternalauditsystemcommensurate
with the size and nature of its business.
(b) The reportsof the InternalAuditor forthe period underaudit havebeen consideredby us.
xv. TheCompanyhasnot enteredintoanynon-cashtransaconswith itsdirectorsorpersonsconnectedwiththem. Accordingly,the reporng
oncompliance with the provisionsof Secon 192of the Act under clause 3(xv)of the Orderis not applicable tothe Company.
xvi. (a) The Companyis not requiredtobe registeredunder Secon 45-IA of the ReserveBank ofIndia Act, 1934. Accordingly, the reporng
underclause 3(xvi)(a) of the Orderis not applicableto the Company.
(b) The Company has not conducted non-banking nancial / housing nance acvies during the year. Accordingly, the reporng under
clause3(xvi)(b) of the Orderis not applicable tothe Company.
(c) TheCompany is not aCore Investment Company (CIC) asdened in the regulaonsmade by the ReserveBank of India. Accordingly,
thereporng under clause3(xvi)(c) ofthe Order isnot applicable tothe Company.
(d) Based on the informaon andexplanaons providedby the managementof the Company, the Groupdoes not haveanyCICs, which
arepartoftheGroup.Wehavenot,however,separatelyevaluatedwhethertheinformaonprovidedbythemanagementisaccurate
andcomplete. Accordingly, thereporng under clause 3(xvi)(d)of the Orderis not applicable tothe Company.
xvii. The Companyhas not incurredany cashlosses in the nancial yearor in theimmediately precedingnancial year.
xviii. Therehas beenno resignaonofthe statutoryauditorsduring theyearand accordinglythe reporngunderclause (xviii) isnot applicable.
xix. Accordingto the informaonand explanaonsgiven to us and on the basis of the nancial raos (Also Refer Note 3.17 to the standalone
nancial statements), ageing and expected dates of realisaon of nancial assets and payment of nancial liabilies, other informaon
accompanying the standalone nancial statements, our knowledge of the Board of Directors and management plans and based on our
examinaonof the evidence supporng the assumpons, nothing has cometo our aenon,which causes us tobelieve that anymaterial
uncertainty exists as on the date of the audit report that Company is not capable of meeng its liabilies exisngat the date of balance
sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance
as tothe future viabilityof the Company. We further statethat ourreporng is based on thefacts up tothe date ofthe audit report and
weneithergive anyguarantee noranyassurancethat allliabilies fallingduewithin aperiod ofone yearfromthe balancesheetdatewill
get discharged by the Company as and when they fall due.
xx. Asatbalancesheetdate,theCompanydoesnothaveanyamountremainingunspentunderSecon135(5)oftheAct.Accordingly,reporng
under clause 3(xx) of the Order is not applicable. Further, the Company has transferred the amount of Corporate Social Responsibility
remaining unspent under sub-secon (5) of Secon 135 of the Act in respect of “other than ongoing projects” pertaining to the previous
nancialyear toa Fund specied inSchedule VII tothe Act within aperiod of six monthsof the expiryof the nancialyear incompliance
withsecond provisoto sub-secon (5) ofSecon 135 of the Act.(Also ReferNote3.15 to thestandalone nancialstatements)
xxi. The reporng under clause 3(xxi) of the Order is not applicable in respect of audit of standalone nancial statements. Accordingly, no
comment in respect of the said clause has been included in this report.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraonNumber: 304026E/E-300009
A.J.Shaikh
Partner
Membership Number : 203637
UDIN:23203637BGXOZF6371
Place : Chennai
Date : May 23, 2023
104 Ashok Leyland Limited
Parculars Note As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
ASSETS
Non-current assets
Property, plant and equipment 1.1 4,747.85 4,977.12
Capitalwork-in-progress 1.1 48.95 111.11
Right-of-useasset 1.1A 236.98 296.58
Goodwill 449.90 449.90
Otherintangibleassets 1.2 869.42 877.30
Intangible assets under development 1.2 83.57 83.16
Financial assets
(i) Investments 1.3 3,892.18 3,521.58
(ii) Tradereceivables 1.4 0.63 0.03
(iii) Other nancial assets 1.5 97.30 68.63
Incometaxassets(net) 1.6A 133.91 103.42
Othernon-currentassets 1.7 327.32 337.81
10,888.01 10,826.64
Current assets
Inventories 1.8 2,774.48 2,075.20
Financial assets
(i) Investments 1.9 2,771.42 1,298.05
(ii) Tradereceivables 1.10 4,062.08 3,096.35
(iii) Cash and cash equivalents 1.11A 454.11 994.25
(iv) Bank balances other than (iii) above 1.11B 47.18 52.71
(v) Other nancial assets 1.12 581.44 995.58
Othercurrentassets 1.13 940.99 931.37
11,631.70 9,443.51
Assetclassiedas held forsale 1.5A 71.92 63.63
TOTAL ASSETS 22,591.63 20,333.78
EQUITY AND LIABILITIES
Equity
Equity share capital 1.14 293.61 293.55
Otherequity 1.15 8,132.19 7,043.35
8,425.80 7,336.90
Liabilies
Non-current liabilies
Financialliabilies
(i) Borrowings 1.16 1,766.23 2,850.61
(ii) Lease liabilies 31.02 34.42
(iii) Other nancial liabilies 1.17 23.01 29.41
Contract liabilies 1.18 250.04 190.58
Provisions 1.19 519.22 200.21
Deferred tax liabilies (net) 1.20 503.51 144.36
3,093.03 3,449.59
Current liabilies
Financialliabilies
(i) Borrowings 1.21 1,413.87 656.49
(ii) Lease liabilies 13.71 12.36
(iii) Trade payables
a) Total outstandingdues of microenterprisesand small enterprises 1.22 73.75 59.84
b) Total outstanding dues of creditors other than micro enterprises and small
enterprises 7,101.37 6,815.39
(iv) Other nancial liabilies 1.23 939.48 699.73
Contract liabilies 1.24 362.83 416.20
Provisions 1.25 519.32 470.25
Othercurrentliabilies 1.26 514.13 281.78
Currenttaxliabilies (net) 1.6B 123.47 123.47
11,061.93 9,535.51
Liabiliesdirectlyassociatedwith assets classiedas held forsale 1.5B 10.87 11.78
TOTAL EQUITY AND LIABILITIES 22,591.63 20,333.78
Theabove Balance Sheetshould be readin conjuncon with the accompanying notes.
Thisis theBalance Sheet referred to inour report ofevendate. For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
Dheeraj G Hinduja
ExecuveChairman
DIN: 00133410
Shenu Agarwal
Managing Director and
ChiefExecuveOcer
DIN : 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
BALANCE SHEET AS AT MARCH 31, 2023
AnnualReport 2022-23 105
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED
MARCH 31, 2023
Parculars Note Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
Income
Revenuefromoperaons 2.1 36,144.14 21,688.29
Other income 2.2 116.14 76.13
Total Income 36,260.28 21,764.42
Expenses
Cost of materials and services consumed 27,246.95 15,913.16
Purchasesof stock-in-trade 1,160.69 896.90
Changes ininventoriesof nished goods,stock-in-tradeand work-in-progress 2.3 (558.49) (48.99)
27,849.15 16,761.07
Employeebenets expense 2.4 2,113.86 1,694.60
Finance costs 2.5 289.09 301.11
Depreciaonand amorsaon expense 2.6 731.96 752.76
Other expenses 2.7 3,250.43 2,238.10
Total Expenses 34,234.49 21,747.64
Prot before exceponal items and tax 2,025.79 16.78
Exceponalitems 2.8 84.61 510.83
Prot before tax 2,110.40 527.61
Tax expense:
Currenttax- Charge 780.00 10.11
Deferredtax -Credit (49.71) (24.33)
730.29 (14.22)
Prot for the year 1,380.11 541.83
Other Comprehensive (Loss) / Income
A (i) Itemsthat will not bereclassied toProt or Loss
- Remeasurementof DenedBenet Plans (15.93) (41.00)
(ii) Income taxrelangto itemsthat willnot be reclassied toProtor Loss 5.57 14.33
B (i) Itemsthat willbe reclassied toProt orLoss
- Eecve poron of gains and loss on designated poron of hedging
instrumentsin a cashow hedge 11.87 34.99
(ii) Income taxrelangto itemsthat willbe reclassied toProt orLoss (4.15) (12.23)
Total Other Comprehensive Loss (2.64) (3.91)
Total Comprehensive Income for the year 1,377.47 537.92
Earnings per share (Face value ` 1 each) 3.3
- Basic (in`) 4.70 1.85
- Diluted(in `) 4.70 1.84
Theabove Statementof Prot andLoss should be readin conjuncon with theaccompanying notes.
Thisis theStatementofProtand Loss referred to inour report ofevendate. For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
Dheeraj G Hinduja
ExecuveChairman
DIN: 00133410
Shenu Agarwal
Managing Director and
ChiefExecuveOcer
DIN : 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
106 Ashok Leyland Limited
Parculars Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
Cash ow from operang acvies
Prot for the year 1,380.11 541.83
Adjustments for :
Incometaxcharge /(credit) 730.29 (14.22)
Depreciaonand amorsaonexpense 714.70 736.66
Depreciaonof Right-of-use asset 17.26 16.10
Share based payment cost (0.03) (2.09)
Impairment/ (Reversal) of loss allowance,write o ontrade receivable/
other receivable (net) 9.82 (5.38)
ImpairmentLoss / (Reversal) in the valueof equity instrumentsin subsidiaries (net) 16.42 (537.83)
(Gain)/ Loss on fairvaluaonof investmentin fellowsubsidiary (65.67) 107.13
Reversalof provisionforobligaon - (33.26)
Obligaonrelangtodisconnued productsof LCV division(net of reversal) (14.90) 3.67
Reversalof provisionrelangto long terminvestment - (1.17)
Foreignexchangeloss / (gain) 0.50 (4.83)
Exchangelosson swap contracts - 17.10
Proton sale ofProperty, plantand equipment (PPE)and intangible assets- net (8.97) (3.02)
Prot(net) inrelaon toEV and relatedexpenses (25.44) (104.96)
Provisionrelangto EMAASbusiness classied as asset heldfor sale - 26.84
Proton sale ofinvestments- net (30.05) (13.31)
Netgain arisingon nancial asset mandatorilymeasuredat FVTPL (10.02) (2.36)
Finance costs 289.09 301.11
Interest income (39.60) (21.91)
Dividend income (0.82) (0.07)
Loss/ (Gain) on preclosureof leases 0.07 (0.14)
Operang prot before working capital changes 2,962.76 1,005.89
Adjustments for changes in :
Tradereceivables (967.97) (291.60)
Inventories (699.28) 20.85
Othernon-current andcurrent nancialassets 16.62 160.21
Othernon-current andcurrent assets (4.87) (97.40)
Ulisaonfrom /(Paymentto)escrow account 5.32 (9.59)
Related party advances/ receivables(net) 5.99 (2.80)
Tradepayables 295.30 1,732.00
Non-currentand currentnancial liabilies 338.14 (5.93)
Assetand liabilies classied as heldfor sale (9.20) -
Contractliabilies 6.09 (80.83)
Othercurrent liabilies 226.54 98.68
Othernon-current andcurrent provisions 360.78 46.03
Cash from operaons 2,536.22 2,575.51
Incometax(paid) / refundreceived(net) (400.21) 71.42
Net cash from operang acvies [A] 2,136.01 2,646.93
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
MARCH 31, 2023
AnnualReport 2022-23 107
Parculars Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
Cash ow from invesng acvies
Purchase of PPE and intangible assets (502.05) (400.02)
ProceedsonsaleofPPEandintangibleassetsincludingsaleofimmovableproperes 13.70 6.70
Proceeds on surrender of Leasehold land 62.70 97.61
Purchaseof non-currentinvestments (19.81) (16.50)
Saleproceeds of non-currentinvestments 5.80 0.07
Purchase of current investments (net) (1,439.64) (1,283.82)
Intercorporate deposits - givento a subsidiary (200.00) -
Investment in bank deposits (215.00) (650.00)
Proceeds from bank deposits 515.00 750.00
Redemponof escrowaccount - 2.82
Interest received 43.95 34.16
Dividend received 0.82 0.07
Net cash used in invesng acvies [B] (1,734.53) (1,458.91)
Cash ow from nancing acvies
Proceedsfromissue of equity shares(including securies premium) 5.01 -
Proceedsfromnon-current borrowings - 650.00
Repayments of non-currentborrowings (375.94) (12.50)
Proceeds from current borrowings 2,926.28 4,624.41
Repayments of current borrowings (2,924.52) (5,518.68)
Payments of Lease liability (17.66) (15.32)
Interest paid (259.79) (275.54)
Dividend paid (293.55) (176.13)
Net cash used in nancing acvies [C] (940.17) (723.76)
Net cash (oulow) / inow [A+B+C] (538.69) 464.26
Opening cash and cash equivalents 994.25 530.13
Exchangeuctuaonon foreigncurrencybank balances (1.45) (0.14)
Closing cash and cash equivalents [Refer Note 1.11A to the standalone nancial statements] 454.11 994.25
Theabove Statementof Cash Flows shouldbe read in conjunconwith the accompanyingnotes.
Thisis theStatementofCash Flows referredtoinour report of evendate. For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
Dheeraj G Hinduja
ExecuveChairman
DIN: 00133410
Shenu Agarwal
Managing Director and
ChiefExecuveOcer
DIN : 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
MARCH 31, 2023
108 Ashok Leyland Limited
A. Equity Share Capital
` Crores
Balance at the beginning of
April 1, 2021
Changes in equity share capital
during the year
Balance at the end of
March 31, 2022
Changes in equity share capital
during the year
Balance at the end of
March 31, 2023
293.55 - 293.55 0.06 293.61
B. Other Equity ` Crores
Parculars Reserves and Surplus Other
Comprehensive
Income
Total
Capital
Reserve
Securies
Premium
Capital
Redempon
Reserve
Share Opons
Outstanding
Account
General
Reserve
Retained
Earnings
Cash Flow
Hedge Reserve
Balance as at the beginning of April 1, 2021 263.87 1,908.75 3.33 42.21 1,018.33 3,459.91 (12.75) 6,683.65
Protforthe year - - - - - 541.83 - 541.83
Othercomprehensiveincome / (loss) - - - - - (26.67) 22.76 (3.91)
Total Comprehensive Income for the year - - - - - 515.16 22.76 537.92
Transacons with owners:
Dividendsincluding tax thereon - - - - - (176.13) - (176.13)
Transfer togeneralreserve pursuanttolapse of ESOP - - - (2.22) 2.22 - - -
(Reversal)/ Recognionof sharebased payments - - - (2.09) - - - (2.09)
Balance as at the end of March 31, 2022 263.87 1,908.75 3.33 37.90 1,020.55 3,798.94 10.01 7,043.35
Protforthe year - - - - - 1,380.11 - 1,380.11
Othercomprehensive(loss) / income - - - - - (10.36) 7.72 (2.64)
Total Comprehensive Income for the year - - - - - 1,369.75 7.72 1,377.47
Transacons with owners:
Dividendsincluding tax thereon - - - - - (293.55) - (293.55)
Transfer togeneralreserve pursuanttolapse of ESOP - - - - - - - -
(Reversal)/ Recognionof sharebased payments - 4.95 - (0.03) - - - 4.92
Balance as at the end of March 31, 2023 263.87 1,913.70 3.33 37.87 1,020.55 4,875.14 17.73 8,132.19
Theabove Statementof Changes in Equityshould be readin conjuncon with theaccompanyingnotes.
Thisis theStatementofChangesin Equity referred to in our report of evendate. For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
Dheeraj G Hinduja
ExecuveChairman
DIN: 00133410
Shenu Agarwal
Managing Director and
ChiefExecuveOcer
DIN : 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR
ENDED MARCH 31, 2023
AnnualReport 2022-23 109
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
A. Equity Share Capital
` Crores
Balance at the beginning of
April 1, 2021
Changes in equity share capital
during the year
Balance at the end of
March 31, 2022
Changes in equity share capital
during the year
Balance at the end of
March 31, 2023
293.55 - 293.55 0.06 293.61
B. Other Equity ` Crores
Parculars Reserves and Surplus Other
Comprehensive
Income
Total
Capital
Reserve
Securies
Premium
Capital
Redempon
Reserve
Share Opons
Outstanding
Account
General
Reserve
Retained
Earnings
Cash Flow
Hedge Reserve
Balance as at the beginning of April 1, 2021 263.87 1,908.75 3.33 42.21 1,018.33 3,459.91 (12.75) 6,683.65
Protforthe year - - - - - 541.83 - 541.83
Othercomprehensiveincome / (loss) - - - - - (26.67) 22.76 (3.91)
Total Comprehensive Income for the year - - - - - 515.16 22.76 537.92
Transacons with owners:
Dividendsincluding tax thereon - - - - - (176.13) - (176.13)
Transfer togeneralreserve pursuanttolapse of ESOP - - - (2.22) 2.22 - - -
(Reversal)/ Recognionof sharebased payments - - - (2.09) - - - (2.09)
Balance as at the end of March 31, 2022 263.87 1,908.75 3.33 37.90 1,020.55 3,798.94 10.01 7,043.35
Protforthe year - - - - - 1,380.11 - 1,380.11
Othercomprehensive(loss) / income - - - - - (10.36) 7.72 (2.64)
Total Comprehensive Income for the year - - - - - 1,369.75 7.72 1,377.47
Transacons with owners:
Dividendsincluding tax thereon - - - - - (293.55) - (293.55)
Transfer togeneralreserve pursuanttolapse of ESOP - - - - - - - -
(Reversal)/ Recognionof sharebased payments - 4.95 - (0.03) - - - 4.92
Balance as at the end of March 31, 2023 263.87 1,913.70 3.33 37.87 1,020.55 4,875.14 17.73 8,132.19
Theabove Statementof Changes in Equityshould be readin conjuncon with theaccompanyingnotes.
Thisis theStatementofChangesin Equity referred to in our report of evendate. For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
Dheeraj G Hinduja
ExecuveChairman
DIN: 00133410
Shenu Agarwal
Managing Director and
ChiefExecuveOcer
DIN : 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
1A. General informaon
Company Background:
Ashok Leyland Limited (“the Company”) (CIN: L34101TN1948PLC000105) is a public limited company incorporated and domiciled in India
and governed by the Companies Act, 2013 (“Act”). The Company’s registered oce is situated at 1, Sardar Patel Road, Guindy, Chennai,
Tamil Nadu, India. The main acvies of the Companyare those relangto manufactureand sale of a wide range of commercialvehicles.
TheCompany also manufacturesengines forindustrial and marine applicaons,forgingsand casngs.
1B. Signicant Accounng Policies
1B.1 Basis of Preparaon and Presentaon
The standalone nancial statements have been prepared in accordance with Indian Accounng Standards (Ind AS) noed under Secon
133of the CompaniesAct, 2013 (theAct) [Companies (IndianAccounngStandards)Rules, 2015] andother relevantprovisionsofthe Act,
asamended from meto me.
Thestandalonenancialstatementshavebeenpreparedonthehistoricalcostbasisexceptforcertainassetsandliabiliesthataremeasured
atfairvalues atthe end of each reporngperiod, as explainedin the accounngpolicies below.
Historicalcostisgenerally basedonthefairvalueoftheconsideraongiveninexchangeforgoodsandservices. Fairvalueisthepricethat
wouldbe receivedtosell an assetor paid totransferaliability in an orderlytransaconbetweenmarketparcipants atthe measurement
date,regardless of whetherthat price isdirectly observableor esmatedusinganother valuaontechnique. Inesmangthe fairvalue of
an asset or a liability, the Company takes into account the characteriscs of the asset or liability if market parcipants would take those
characteriscs into account when pricing the asset or liability at the measurement date. Fair value for measurement and / or disclosure
purposes in these standalone nancial statements is determined on such a basis, except for share-based payment transacons that are
withinthescopeofIndAS102,leasingtransaconsthatarewithinthescopeofIndAS116,andmeasurementsthathavesomesimilaries
to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
In addion, for nancial reporng purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which
the inputs to the fair valuemeasurements are observable and the signicance of the inputs to the fair value measurement in its enrety,
which are described as follows:
● Level 1 inputs are quoted prices (unadjusted) in acve markets for idencal assets or liabilies that the enty can access at the
measurementdate;
● Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly
orindirectly; and
● Level 3 inputs are unobservable inputs for the asset or liability.
All assets and liabilies have been classied as currentor non-currentas per the Company’s normal operang cycle and other criteria set
outin thescheduleIII totheAct. Basedon thenatureofproductsand theme betweentheacquision ofassetsforprocessingand their
realisaon in cash and cash equivalents, the Company has determined its operang cycle as twelve months for the purpose of current –
non-currentclassicaonof assets and liabilies.
The standalonenancialstatementsarepresentedin Indian Rupees(`) whichis the funconalcurrency ofthe Companyand allvaluesare
roundedto thenearestcrores,exceptwhereotherwise indicated.
The standalonenancial statementswereapprovedfor issueby the Boardof Directorson May23, 2023.
Recent accounng pronouncements
MinistryofCorporateAairs(“MCA”)noesnewstandardsoramendmentstotheexisngstandardsunderCompanies(IndianAccounng
Standards)Rules. OnMarch 31, 2023,MCA amended the Companies (IndianAccounng Standards)AmendmentRules, 2023, as below:
a) Ind AS1 - Presentaonof Financial Statements
This amendment requires the enes to disclose their material accounng policies rather than their signicant accounng policies.
Theeecvedateforadopon of this amendmentis annual periods beginning on oraer April 1,2023.
b) Ind AS 12- Income Taxes
This amendment has narrowedthe scope of the inial recognionexemponso that it does not apply to transacons thatgive rise
to equal and oseng temporarydierences. The eecvedate for adopon of this amendment is annual periods beginning on or
aerApril 1, 2023.
110 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
c) Ind AS 8- AccounngPolicies, Changesin Accounng Esmatesand Errors
Thisamendmenthasintroducedadenionof‘accounngesmates’andincludedamendmentstoIndAS8tohelpenesdisnguish
changes in accounng policies from changes in accounng esmates. The eecve date for adopon of this amendment is annual
periodsbeginning on or aerApril 1, 2023.
TheseamendmentsarenotexpectedtohaveamaterialimpactontheCompanyinthecurrentorfuturereporngperiodsandonforeseeable
futuretransacons.
The signicant accounng policies are detailed below.
1B.2 Revenue recognion
Ind AS 115 establishes a ve-step model to account for revenue arising from contracts with customers and requires that revenue be
recognised at an amount that reects the consideraon to which an enty expects to be entled in exchange for transferring goods or
services to a customer.
IndAS115requiresenestoexercisejudgement,takingintoconsideraonallof therelevantfactsand circumstanceswhenapplying each
step of the model to contracts with their customers. The standard also species the accounng for the incremental costs of obtaining a
contract and the costsdirectly relatedto fullling a contract.
Revenue from contract with customer
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount
that reects the consideraon to which the Company expects to be entled in exchange for those goods or services. The Company has
generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods or services before transferring
them to the customer.
Sale of Products
Revenue from sale of products is recognised at the point in me when control of the asset is transferred to the customer, generally on
deliveryofthe product.TheCompanyoperatespredominantly oncashand carrybasisexcepngsaletoStateTransportUndertaking(STU),
Governmentprojectcustomersbasedontendertermsandcertainexport/domesccustomerswhichareoncreditbasis.Theaveragecredit
period is in the range of 7 days to 90 days.
The Companyconsiderswhether there areother promisesin the contractthat areseparateperformanceobligaonsto which a poronof
thetransaconpriceneedstobe allocated(e.g.,extendedwarranes, freight&insuranceetc).Indeterminingthetransaconpriceforthe
saleof product, theCompany considersthe eectsof variable consideraon,the existenceof consideraonpayableto the customer, etc.
Sale of Service
Revenue from services is recognised over a period of me as and when the services are rendered in accordance with the specic terms
of contract with customer. The receipt of consideraon for extended warranty services, free services, AMC and freight and insurance is
generallyreceivedwhen consideraonreceivable fromsale of products is received fromcustomer. In certaincases, the AMC contractsare
soldasaseparateproductoncashbasisoroncreditasperthecontractwithcustomer.Ontherecognionofthereceivablefromcustomer,
the Company recognises a contract liability which is then recognised as revenue as once the services are rendered. Using the praccal
expedient in Ind AS 115, the Company does not adjust the promised amount of consideraon for the eects of a signicant nancing
componentif it expects, at contract incepon, thatthe period between the transfer of the promised good or service to the customerand
when the customerpays forthat good or service will be one year or less. For other cases, the revenue reectsthe cash selling price that
thecustomerwouldhavepaidforthepromisedserviceswhentheservicesaretransferredtocustomer.Thusthereisnosignicantnancing
component.
Variable consideraon
Iftheconsideraoninacontractincludesavariableamount,theCompanyesmatestheamountofconsideraontowhichitwillbeentled
in exchangefor transferring the goods to the customer. The variable consideraon is esmatedat contract incepon and constrained unl
itishighly probablethatasignicantrevenuereversalintheamountof cumulaverevenuerecognisedwillnot occurwhen theassociated
uncertaintywith thevariable consideraonis subsequentlyresolved.
Incenves
The Company provides retrospecve volume rebates to certain customers once the quanty of products purchased during the period
exceeds a threshold specied in the contract. To esmate thevariable consideraonforthe expectedfuture rebates,the Companyapplies
themost likelyamount methodforcontractswith a single-volumethreshold and the expectedvaluemethod forcontractswith morethan
one volume threshold. The selected method that best predicts the amount of variable consideraon is primarily driven by the number of
volumethresholdscontainedinthecontract.TheCompanythenappliestherequirementsonconstrainingesmatesofvariableconsideraon
andrecognises arefund liability forthe expectedfuturerebates.
AnnualReport 2022-23 111
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Signicant nancing component
The Company receivesshort-termadvances from its customers. Using the praccalexpedient in Ind AS 115, the Company does not adjust
thepromisedamountofconsideraonfortheeectsofasignicantnancingcomponentifitexpects,atcontractincepon,thattheperiod
between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be one
yearor less. Thus, thereis no signicantnancing component.
Warranty obligaons
Refer Note 1B.14 onwarrantyobligaons
Contract balances
Contract assets
A contract asset is the right to consideraon in exchange for goods or services transferred to the customer. If the Company performs by
transferringgoodsorservicestoacustomerbeforethecustomerpaysconsideraonorbeforepaymentisdue,acontractassetisrecognised
forthe earnedconsideraonthat is condional.
Trade receivables
Tradereceivablesis part of contractbalancesas per Ind AS 115.
Contract liabilies
A contract liability is the obligaon to transfer goods or services to a customer for which the Company has received consideraon (or an
amountofconsideraonisdue)fromthecustomer.IfacustomerpaysconsideraonbeforetheCompanytransfersgoodsorservicestothe
customer, a contractliability is recognised when the payment is made or the payment is due (whichever is earlier). Contractliabilies are
recognised as revenue when the services are provided as set out in the contract.
Refund liabilies
Arefundliabilityistheobligaontorefundsomeoralloftheconsideraonreceived(orreceivable)fromthecustomerandismeasuredatthe
amounttheCompanyulmatelyexpectsitwillhavetoreturntothecustomer.TheCompanyupdatesitsesmatesofrefundliabilies(andthe
correspondingchangeinthetransaconprice)attheendofeachreporngperiod.Refertoaboveaccounngpolicyonvariableconsideraon.
Other Operang Revenues:
Other operangrevenuescompriseof incomefromancillary acviesincidentaltothe operaonsofthe Companyandis recognisedwhen
the right to receive the income is established as per the terms of the contract.
Dividend, Interest Income and Other Income:
Dividend income from investments is recognised when the Company’s right to receive payment has been established (provided that it is
probablethat theeconomic benets willow to theCompany and theamount of incomecan be measuredreliably).
Interestincomeis accrued on ame basis, by reference tothe principal outstandingand atthe eecveinterestrateapplicable(provided
thatit is probablethat the economicbenets will owto the Companyand the amountof income canbe measuredreliably).
Feeon nancial guaranteeprovidedby theCompany is accruedas Other income.
1B.3 Foreign currency transacons
The Company’s foreignoperaons (including foreignbranches)areanintegralpartof the Company’s acvies.In preparingthe standalone
nancialstatements,transaconsincurrenciesotherthantheenty’sfunconalcurrency(foreigncurrencies)arerecognisedattheratesof
exchangeprevailingatthedatesofthetransacons.Attheendofeachreporngperiod,monetaryitemsdenominatedinforeigncurrencies
arerestatedattheratesprevailingatthatdate.Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyare
not restated.
Exchangedierenceson monetaryitems arerecognisedin protor loss in the periodin which they arise except for:
● Exchange dierence on translaon of derivave instruments designated as cash ow hedge (see Note 1B.17 below for hedging
accounngpolicies).
1B.4 Borrowing costs
Borrowing costs (general and specic borrowings) that are aributable to the acquision, construcon or producon of qualifying assets,
whichareassetsthatnecessarilytakeasubstanalperiodofmetogetreadyfortheirintendeduseorsale,areaddedtothecostofthose
assets,unl such meas the assets aresubstanallyreadyfor theirintended use orsale.
All other borrowingcostsare recognisedin protor loss in theperiod in which theyare incurred.
112 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1B.5 Government Grants
Government grants (including export incenves and incenves on specied goods manufactured in the eligible unit) are recognised only
whenthere is reasonableassurancethat the Companywill complywith the condions aachedto themand the grantswill be received.
GovernmentgrantsrelangtoincomearerecognisedinprotorlossonasystemacbasisovertheperiodsinwhichtheCompanyrecognises
asexpensestherelatedcostsforwhichthegrantsareintendedtocompensate.Grantrelangtoassetsareneedoagainsttheacquision
cost of the asset.
Thebenetofa governmentloanatabelowmarketrateof interestis treated asagovernmentgrant, measuredatthedierence between
proceeds received and the fair value of the loan based on prevailing market rates.
1B.6 Employee benets
Rerementbenet costsand terminaonbenets:
Payments todenedcontribuonplansi.e.,Company’scontribuontosuperannuaonfund,employeestateinsuranceandotherfunds are
determinedundertherelevantschemesand/ orstatuteandchargedtotheStatementofProtandLossin theperiodofincurrencewhen
the services are rendered by the employees.
For dened benet plans i.e. Company’s liability towards gratuity (funded), Company’s contribuon to provident fund, other rerement /
terminaonbenets and compensated absences, the costof providing benets is determined using the projectedunit credit method with
actuarialvaluaonsbeingcarriedoutattheendofeachannualreporngperiod.Inrespectofprovidentfund,contribuonsmadetotrusts
administered by the Company, the interest rate payable to the members of the trust shall not be lower than the statutory rate of interest
declaredbytheCentralGovernmentundertheEmployeesProvidentFund andMiscellaneousProvisionsAct,1952andshorall,ifany,shall
becontributedby the Companyand chargedto the Statement of Protand Loss.
Dened benetcostsare comprisedof:
● servicecost (including currentservice cost,past service cost,as wellas gainsand losses on curtailmentsand selements);
● netinterestexpenseor income;and
● re-measurement.
The Company presents the rst two components of dened benet costs in prot or loss in the line item ‘Employee benets expense’.
Curtailment gains and losses are accounted for as past service costs.
Re-measurement of net dened benet liability / asset pertaining to gratuity and remeasurement of net dened liability pertaining to
providentfund comprise of actuarial gains/ losses (i.e. changes in the present value resulngfrom experience adjustments and eectsof
changesinactuarialassumpons)andisreectedimmediatelyinthebalancesheetwithachargeorcreditrecognisedinothercomprehensive
incomeinthe periodin which theyoccur.Re-measurementrecognisedinother comprehensiveincomeis reectedimmediatelyinretained
earningsand is not reclassiedto protor loss.
LiabilityforterminaonbenetslikeexpenditureonVoluntaryRerementSchemeisrecognisedattheearlierofwhentheCompanycanno
longerwithdrawthe oerof terminaonbenet or whenthe Company recognisesanyrelatedrestructuringcosts.
Short-termand otherlong-term employeebenets:
A liability is recognised for benets accruing to employees in respect of salaries, wages, performance incenves, medical benets and
othershort termbenetsin theperiod therelatedservice isrendered,atthe undiscountedamountofthe benetsexpectedtobe paidin
exchange forthat service.
Liabilies recognised in respect of other long-term employee benets are measured at the present value of the esmated future cash
oulowsexpectedto be madeby the Companyin respectof services provided byemployeesup to the reporngdate.
1B.7 Share-based payment arrangements
Equity-seled share-based payments to employees (primarily employee stock opon plan) are measured by reference to the fair value of
the equity instruments at the grant date.
Thefairvaluedeterminedatthegrantdateoftheequity-seledshare-basedpayments isexpensedonastraight-linebasisoverthevesng
period, based on the Company’s esmate of equity instruments that will eventually vest, with a corresponding increase in equity. At the
endofeachyear,theCompanyrevisesitsesmateofthenumberofequityinstrumentsexpectedtovest.Theimpactoftherevisionofthe
originalesmates,ifany,isrecognisedinprotorlosssuchthatthecumulaveexpensereectstherevisedesmate,withacorresponding
adjustmenttothe share oponsoutstanding account.
AnnualReport 2022-23 113
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1B.8 Income Taxes
Income taxexpenserepresentsthe sumof the taxcurrentlypayableand deferred tax.Currentand deferredtaxarerecognisedin protor
loss, except when they relateto items thatare recognisedin other comprehensiveincome or directly in equity, in which case,the current
anddeferredtaxare alsorecognised inother comprehensiveincome or directlyin equity respecvely.
Current tax:
Currenttaxisdeterminedontaxableprotsfortheperiodchargeabletotaxinaccordancewith theapplicabletaxratesandtheprovisions
ofthe Income Tax Act, 1961 includingother applicable taxlaws thathavebeen enacted.
Deferred tax:
Deferred tax is recognised on temporary dierences between the carrying amounts of assets and liabilies in the standalone nancial
statementsand the corresponding tax bases used in the computaon of taxableprot. Deferredtax liabilies are generally recognised for
all taxable temporary dierences. Deferred tax assets are generally recognised for all deducble temporary dierences to the extent that
it is probable that taxableprots will be available againstwhich those deducble temporarydierences can be ulised. Such deferredtax
assetsandliabiliesarenotrecognisedifthetemporarydierencearisesfromtheinialrecognion(otherthaninabusinesscombinaon)
ofassets and liabilies in atransacon thataectsneither the taxableprot nor theaccounng prot.
Deferred tax asset is recognised for the carry forward of unused tax losses and unused tax credits (MAT credit entlement) to the extent
thatit is probablethat futuretaxableprotwill be availableagainstwhich the unusedtax lossesand unused taxcredits canbe ulised.
The carrying amount of deferred tax assets is reviewedat the end of each reporng period and reducedto the extentthat it is no longer
probablethat sucienttaxableprotswill be availabletoallow all or part ofthe asset tobe recovered.
Deferred taxliabilies and assets are measuredat the taxratesthat are expectedto apply in the period in which the liability is seled or
theassetisrealised,basedontaxrates(andtaxlaws)thathave beenenactedorsubstanvely enactedbytheendofthereporngperiod.
The measurement of deferred tax liabilies and assets reects the tax consequences that would follow from the manner in which the
Companyexpects,at the endof the reporng period,to recoverorsele the carrying amountof its assets andliabilies.
Uncertainty over income tax treatments
Ifthereisuncertaintyovertaxtreatmentofanitem,companywillpredicttheresoluonoftheuncertainty.Ifitisprobablethatthetaxaon
authority will accept the tax treatment,there will be no impact on the amounts of taxableprots / losses, tax bases, unused tax losses /
creditsand taxrates.If itis not probablethat taxauthority will acceptthe taxtreatment,companywill show the eectof the uncertainty
foreach uncertaintaxtreatmentby using either themost likelyoutcomeor the expectedoutcomeof the uncertainty.
1B.9 Property, plant and equipment
Cost:
Property, plant and equipment held for use in the producon or supply of goods or services, or for administrave purposes, are stated in
thebalancesheetatcost(netofduty/taxcreditavailed)lessaccumulateddepreciaonandaccumulatedimpairmentlosses.Costofallcivil
works(including electricaon and ngs) is capitalisedwith the exceponof alteraons and modicaonsof a capitalnature to exisng
structureswherethe costof such alteraonormodicaon is ` 100,000 and below.
Properesinthecourseofconstruconforproducon,supplyoradministravepurposesarecarriedatcost,lessanyrecognisedimpairment
loss. Cost includes professional fees, and other direct costs and, for qualifying assets, borrowing costs capitalised in accordance with the
Company’saccounngpolicy.Suchproperesareclassiedtotheappropriatecategoriesofproperty,plantandequipmentwhencompleted
andreadyforintendeduse.Depreciaonoftheseassets,onthesamebasisasotherpropertyassets,commenceswhentheassetsareready
for their intended use.
Fixtures, plant and equipment (including paernsand dies) where the cost exceeds ` 10,000 and the esmateduseful life is two yearsor
more,is capitalisedand statedat cost(net of duty/ taxcredit availed)lessaccumulated depreciaonand accumulatedimpairmentlosses.
Subsequent expenditure is capitalised only if it is probable that the future economic benets associated with the expenditure will ow to
the Company and the cost of the item can be measured reliably.
Depreciaon / amorsaon:
Depreciaon is recognised so as to write o the cost of assets (other than freehold land and properes under construcon) less their
residual values over their useful lives, using the straight-line method. The esmateduseful lives, residual values and depreciaon method
arereviewedatthe end of each reporngperiod, with the eectof any changesin esmateaccountedforon a prospecvebasis.
114 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Esmatedusefullivesoftheassets,basedontechnicalassessment,whicharedierentincertaincasesfromthoseprescribedinScheduleII
to the Act, are as follows:
Classes of Property, Plant and Equipment Useful life (years) Useful life (years)
As per Schedule II
Buildings 30 /60 30 / 60
Non-factoryservice installaons:
-In customerpremises 12 10
Qualityequipment, canteenassets, majorJigs and xtures andhand tools 5 – 12 15
Otherplant and machinery 15– 20 15
Paerns and dies 5 15
Furnitureand ngs 8 10
Aircra 18 20
Vehicles:
- Trucks and buses 5 / 10 8
- Carsand motorcycles 3 8 / 10
Oceequipment 8 5
Oceequipment – Dataprocessingsystem(including servers) 5 6
When signicant parts of an item of property, plant and equipment have dierent useful lives, they are accounted for as separate items
(majorcomponents)ofProperty,PlantandEquipmentand accordinglythedepreciaoniscomputedbasedonesmatedusefullivesofthe
assets.
De-recognion:
Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenetsareexpectedtoarisefromthe
connueduseoftheasset.Anygainorlossarisingonthedisposalorrerementofanitemofproperty,plantandequipmentisdetermined
asthe dierencebetweenthe sales proceedsand the carrying amountof the asset andis recognisedin prot orloss.
1B.10 Intangible assets
Intangible assets acquired separately:
Intangible assets with nite useful lives that are acquired separately, where the cost exceeds ` 10,000 and the esmated useful life is
two years or more, is capitalised and carried at cost less accumulated amorsaon and accumulated impairment losses. Amorsaon is
recognisedona straight-linebasis overtheir esmatedusefullives.The esmateduseful lifeandamorsaonmethod arereviewedatthe
endof each reporng period,with the eectof anychanges inesmatebeing accountedforon a prospecvebasis.
Internally-generated intangible assets - research and development expenditure:
Expenditureon researchacvies is recognisedas an expensein the period inwhich it is incurred.
An internally generated intangible asset arising from development (or from development phase of internal project) is recognised, if and only
if, all of the following have been demonstrated:
● technicalfeasibilityof complengthe intangibleasset;
● intenon to completethe intangibleasset and intenon/ ability to useor sell it;
● howthe intangibleasset will generate probablefuture economicbenet;
● availabilityofadequatetechnical,nancialandotherresourcestocompletethedevelopmentandtouseorsellthe intangibleassets;
and
● theability to measurereliablythe aributable expenditureduringthe developmentstage.
The amount inially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when
the intangible asset rst meets the recognion criteria listed above. Where no internally-generated intangible asset can be recognised,
developmentexpenditureis recognisedin protor loss in theperiod in which it is incurred.
Subsequenttoinialrecognion,internally-generatedintangibleassetsarereportedatcostlessaccumulatedamorsaonandaccumulated
impairment losses, on the same basis as intangible assets that are acquired separately.
De-recognion of intangible assets:
An intangible asset is derecognised on disposal, or when no future economic benets are expected from use or disposal. Gains or losses
arisingfromde-recognionof an intangibleasset,measuredas the dierence betweenthe netdisposal proceedsand thecarrying amount
ofthe asset, is recognisedin protor loss when theasset is derecognised.
AnnualReport 2022-23 115
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Useful lives of intangible assets:
Esmateduseful livesof the intangibleassets, basedon technical assessment,are asfollows:
Classes of Intangible Assets Useful life (years)
ComputerSoware:
Acquired 5
Developed 5/ 10
Technical Knowhow:
Acquired 5/ 6
Developed 6/ 10
1B.11 Impairment losses
Attheendofeachreporngperiod,theCompanydetermineswhetherthereisanyindicaonthatitsassets(property,plantandequipment,
intangible assets and investments in equity instruments in subsidiaries, joint ventures and associates carried at cost) have suered an
impairmentlosswith referencetotheir carryingamounts.If anyindicaonofimpairmentexists,the recoverableamount(i.e. higherof the
fairvalueless costsof disposal andvalue inuse) of such assetsis esmatedand impairmentis recognised,if the carryingamount exceeds
the recoverable amount. In assessing value in use, the esmated future cash ows are discounted to their present value using a pre-tax
discountratethatreectscurrentmarketassessmentsofthemevalueofmoneyandtherisksspecictotheassetforwhichtheesmates
offuture cashows havenot been adjusted.
Intangible assets under development and goodwill are tested for impairment annually at each balance sheet date. When it is not possible
to esmatethe recoverableamount of an individual asset, the Company esmates the recoverable amount of the cash-generang unit to
which the asset belongs.
Whenan impairmentloss subsequentlyreverses (otherthan impairmentofgoodwill),the carryingamountof theasset (orcash-generang
unit) is increased to the revised esmate of its recoverable amount, so that the increased carrying amount does not exceed the carrying
amountcarried hadno impairment loss beenrecognisedfor theasset (or cash-generangunit) in prior years.A reversalofan impairment
lossis recognised immediatelyin protor loss.
1B.12 Leases
TheIndianAccounngStandardonleases(IndAS116)requiresentytodeterminewhetheracontractisorcontainsaleaseattheincepon
of the contract.
IndAS116requireslesseetorecognisealiabilitytomakeleasepaymentsandanassetrepresenngtheright–of-useassetduringthelease
termforall leases exceptforshort termleases and leases oflow-valueassets, ifthey choose toapply such exempons.
Paymentsassociatedwithshort-termleasesandlowvalueassetsarerecognizedasexpensesinprotorloss.Short-termleasesareleaseswith
aleasetermof12monthsorless.Lowvalueassetscompriseofoceequipmentsandsmallitemsofplantandequipmentandocefurniture.
At the commencement date,Company recognise a right-of-use asset measured at cost and a lease liability measured at the present value
oftheleasepaymentsthatarenotpaid atthatdate.Theleasepaymentsshallbediscountedusingtheinterestrateimplicit inthelease, if
that rate can be readily determined. If that rate cannot be readily determined, the lessee shall use the lessee’s incremental borrowing rate.
The costofthe right-of-use assetcomprise of,the amountof the inialmeasurementof the leaseliability, anylease paymentsmadeator
before the commencementdate,less any leaseincenves received.
At the commencement date, the lease payments included in the measurement of the lease liability comprise (a) xed payments less any
lease incenves receivable; (b) variable lease payments that depend on an index or a rate, inially measured using the index or rate as
at the commencement date (c) amounts expected to be payableby the lessee under residual value guarantees;(d) the exercise price of a
purchase opon if the lessee is reasonably certain to exercise that opon and (e) payments of penales for terminang the lease, if the
leaseterm reectsthe lessee exercising an oponto terminatethe lease.
Depreciaon on Right-of-use asset is recognised in statement of prot and Loss on a straight line basis over the period of lease and the
Companyseparatelyrecognisesinterest on lease liability as acomponent of nancecost instatementof protand Loss.
1B.13 Inventories
Inventories are stated at lower of cost and net realisable value.
Costofrawmaterialsandcomponents,stores,spares,consumabletoolsandstockintradecomprisescostofpurchasesandincludestaxesand
dues andis net of eligible creditsunder CENVAT / VAT / GSTschemes. Cost of work-in-progress,work-madecomponentsand nished goods
comprises direct materials, direct labour and an appropriate proporon of variable and xed overheads, which is allocated on a systemac
basis.Cost of inventories also includes all other relatedcosts incurredin bringing the inventories to theirpresent locaonand condion.
116 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Netrealisablevaluerepresentstheesmatedsellingpriceforinventorieslessallesmatedcostsofcompleonandcostsnecessarytomake
the sale.
Cost of inventories are determined as follows:
● Rawmaterialsand components,stores,spares, consumabletools, stockin trade:on moving weightedaverage basis; and
● Work-in-progress,works-madecomponentsandnishedgoods:onmovingweightedaveragebasisplusappropriateshareofoverheads.
Cost ofsurplus / obsolete/ slow moving inventories areadequately providedfor.
1B.14 Provisions and Conngent liabilies
Provisions:
Provisions are recognised when the Company has a present obligaon (legal, contractual or construcve) as a result of a past event, it is
probablethat theCompany will berequiredto sele theobligaon, anda reliable esmatecan be made ofthe amount of the obligaon.
The amount recognisedas a provision is the best esmateof the consideraonrequiredto sele the presentobligaon at the end of the
reporng period, taking into account the risks and uncertaines surrounding the obligaon. When a provision is measured using the cash
owsesmated to selethe presentobligaon, its carrying amount is the presentvalue of those cash ows (when the eectof the me
value of money is material).
When some or all of the economic benets required to sele a provision are expected to be recovered from a third party, a receivable
is recognised as an asset if it is virtually certain that reimbursements will be received and the amount of the receivable can be measured
reliably.
Warranes:
Provisions for expected cost of warranty obligaons under legislaon governing sale of goods are recognised on the date of sale of the
relevant products at the Management’s best esmate of the expenditure required to sele the obligaon which takes into account the
empirical data on the nature, frequency and average cost of warranty claims and regarding possible future incidences.
Conngent liabilies:
A disclosureforconngentliabilies is madewhere thereis apossible obligaonor a presentobligaonthatmayprobably notrequirean
oulowof resources.When thereisa possibleor apresentobligaonwherethelikelihoodofoulow ofresourcesisremote,no provision
or disclosure is made.
1B.15 Business Combinaons
A common control business combinaon, involving enes or businesses in which all the combining enes or businesses are ulmately
controlledbythesamepartyorparesbothbeforeandaerthebusinesscombinaonandwherethecontrolisnottransitory,isaccounted
forin accordancewith Appendix Cto Ind AS 103‘Business Combinaons’.
Otherbusiness combinaons,involvingenesorbusinessesareaccountedforusingacquision method.Consideraontransferredinsuch
businesscombinaons is measuredat fairvalueas on the acquision date,which comprisesthe following:
● Fair values of the assets transferred
● Liabiliesincurred tothe formerownersof the acquired business
● Equity interests issued by the Company
Goodwill is recognised and is measured as the excess of the sum of the consideraon transferred, the amount of any non-controlling
interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree over the net fair value of assets
andliabilies acquired.
1B.16 Goodwill
Goodwill arising on businesscombinaon is carriedat costless accumulatedimpairment losses,if any.
For the purposes of impairment tesng, goodwill is allocated to the Company’s cash-generang unit that is expected to benet from the
synergiesof the combinaon.
A cash-generang unitto whichgoodwill hasbeen allocatedistestedforimpairment annually, or whenthereis an indicaonthatthe unit
may be impaired. The recoverable amount of cash generang unit is determined for each cash generang unit based on a value in use
calculaonwhichusescashowprojeconsandappropriatediscountrateisapplied.Thediscountratetakesintoaccounttheexpectedrate
ofreturntoshareholders,theriskofachievingthebusinessprojecons,risksspecictotheinvestmentsandotherfactors.Iftherecoverable
amount of the cash-generang unit is less than its carrying amount, the impairment loss is allocated rst to reduce the carrying amount
of any goodwill allocated to the unit and then to the other assets of the unit, pro rata based on the carrying amount of each asset in the
unit.Any impairmentloss forgoodwillis recogniseddirectlyin protor loss. Animpairment loss recognisedforgoodwillis not reversed in
subsequent periods.
On disposal of the relevantcash-generangunit, the aributableamount of goodwill is included in the determinaon of the protor loss
on disposal.
AnnualReport 2022-23 117
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1B.17 Financial instruments
FinancialassetsandnancialliabiliesarerecognisedwhentheCompanybecomesapartytothecontractualprovisionsoftheinstruments.
Financial assets and nancial liabilies areinially measured at fair value.Transacon costs thatare directly aributableto the acquision
orissue of nancialassets and nancialliabilies (other thannancial assets andnancial liabilies atfairvalue throughprotor loss) are
addedtoordeductedfromthefairvalueofthenancialassetsornancialliabilies,asappropriate,oninialrecognion.Transaconcosts
directlyaributabletotheacquisionofnancialassetsornancialliabiliesatfairvaluethroughprotorlossarerecognisedimmediately
inprot or loss.
Financial assets:
Allregularwaypurchasesorsalesofnancialassetsarerecognisedandderecognisedon atradedatebasis. Regularwaypurchasesorsales
arepurchasesorsalesofnancialassetsthatrequiredeliveryofassetswithinthemeframeestablishedbyregulaonorconvenoninthe
marketplace.
Classicaon of nancial assets
The nancial assets are inially measured at fair value.Transaconcosts that are directly aributableto the acquision of nancial assets
(exceptfornancialassetscarriedatfairvaluethroughprotorloss)areaddedtothefairvalueofthenancialassetsoninialrecognion.
Transaconcostsof nancial assets carriedat fairvaluethrough protor loss areexpensed in protor loss.
Subsequent measurement:
(i) Financial assets (otherthan investments and derivaveinstruments)are subsequentlymeasuredatamorsed costusing theeecve
interest method.
Eecve interest method is a method of calculang the amorsed cost of a debt instrument and of allocang interest income over the
relevantperiod.Theeecveinterestrateistheratethatexactlydiscountsesmatedfuturecashreceipts(includingallfeesandpointspaid
orreceivedthatformanintegralpartoftheeecveinterestrate,transaconcostsandotherpremiumsordiscounts)throughtheexpected
lifeof thedebt instrument,or, whereappropriate,a shorterperiod, to thenet carrying amounton inial recognion.
Investmentsin debt instrumentsthat meetthe followingcondions aresubsequently measuredat amorsed cost:
● theasset is heldwithin a business model whose objecveis to holdassets in orderto collectcontractualcash ows;and
● the contractual terms of the instrument give rise on specied dates to cash ows that aresolely paymentson principal and interest
on the principal amount outstanding.
Income onsuch debt instrumentsis recognisedin protor loss and is included inthe “Other Income”.
The Companyhas not designatedanydebt instrumentsas fairvalue throughother comprehensiveincome.
(ii) Financial assets (i.e. derivave instruments and investments in instruments other than equity of subsidiaries, joint ventures and
associates) are subsequently measured at fair value.
Such nancial assets are measured at fair value at the end of each reporng period, with any gains or losses arising on re-measurement
recognisedin protor loss and includedin the “Other Income”.
Investments in equity instruments of subsidiaries, joint ventures and associates
The Company measures its investments in equity instruments of subsidiaries, joint ventures and associates at cost in accordance with Ind
AS 27.
Impairment of nancial assets:
A nancial asset is regarded as credit impaired or subject to signicant increase in credit risk, when one or more events that may have
a detrimental eect on esmated future cash ows of the asset have occurred. The Company applies the expected credit loss model for
recognising impairment loss on nancial assets (i.e. the shorall between the contractual cash ows that are due and all the cash ows
(discounted)thatthe Companyexpects toreceive).
De-recognion of nancial assets:
The Company derecognises a nancial asset when the contractual rights to the cash ows from the asset expire, or when it transfers the
nancial asset and substanallyall the risks and rewardsof ownership of the asset to another party. If the Company neither transfers nor
retains substanally all the risks and rewards of ownership and connues to control the transferred asset, the Company recognises its
retainedinterestintheassetandanassociatedliabilityforamountsitmayhavetopay.Onde-recognionofanancialassetinitsenrety,
thedierencebetweentheasset’scarryingamountandthesumoftheconsideraonreceivedandreceivableisrecognisedintheStatement
ofprot and loss.
118 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Financial liabilies and equity instruments:
Classicaon as debt or equity
DebtandequityinstrumentsissuedbytheCompanyareclassiedaseithernancialliabiliesorasequityinaccordancewiththesubstance
ofthe contractualarrangementsand thedenions of a nancial liabilityand an equity instrument.
Equity instruments
An equity instrument is any contractthat evidences a residualinterestin the assets of an enty aerdeducng all of its liabilies. Equity
instrumentsissued bya group entyare recognisedatthe proceedsreceived, netof direct issuecosts.
Repurchaseof the Company’s own equity instrumentsis recognised and deducted directlyin equity. No gain or loss is recognised in prot
orloss on the purchase,sale, issue or cancellaonof the Company’s own equity instruments.
Financial liabilies
All nancialliabilies (otherthan derivave instruments)aresubsequentlymeasuredatamorsed costusingthe eecve interestmethod.
Theeecveinterestmethodisamethodofcalculangtheamorsedcostofanancialliabilityandofallocanginterestexpenseoverthe
relevant period. The eecve interest rateis the ratethat exactlydiscounts esmated future cash payments (including all feesand points
paid or received that form an integral part of the eecve interest rate, transacon costs and other premiums or discounts) through the
expectedlifeof thenancial liability, or (whereappropriate)a shorterperiod, to the netcarrying amount oninial recognion.
Interestexpensethat isnot capitalisedas part of costof an assetis included in the “Finance Costs”.
Financial guarantee contracts
A nancialguaranteecontract is acontractthatrequiresthe issuertomakespecied paymentstoreimbursetheholder foraloss it incurs
becausea specied debtorfails tomakepaymentswhen due inaccordance with theterms of adebt instrument.
Financial guarantee contracts issued by the Company are inially measured at their fair values and are subsequently measured (if not
designatedas atFairvalue though protor loss) atthe higher of:
● theamount of impairmentloss allowancedetermined in accordancewith requirements of Ind AS 109; and
● theamount inially recognisedless, whenappropriate,the cumulaveamount of incomerecognised
De-recognion of nancial liabilies
TheCompanyderecognisesnancialliabilieswhen,andonlywhen,theCompany’sobligaonsaredischarged,cancelledorhaveexpired.An
exchangewithalenderofdebtinstrumentswithsubstanallydierenttermsisaccountedforasanexnguishmentoftheoriginalnancial
liability and the recognion of a new nancial liability. Similarly, a substanal modicaon of the terms of an exisng nancial liability
(whetheror not aributableto the nancial dicultyof the debtor) isaccounted foras anexnguishment of theoriginal nancial liability
and the recognion of a new nancial liability. The dierencebetween the carrying amount of the nancial liability derecognised and the
consideraon paid and payableis recognisedin protor loss.
Derivave nancial instruments:
TheCompanyentersintoavarietyofderivavenancialinstrumentstomanageitsexposuretointerestrateandforeignexchangeraterisks,
including foreignexchangeforwardcontractsand cross currency interest rateswaps. Further details of derivave nancial instruments are
disclosed in Note 3.6.
Derivavesare inially recognised at fairvalue at the date the derivavecontracts are entered into and are subsequently re-measured to
theirfairvalueattheendofeachreporngperiod.Theresulnggainorlossisrecognisedinprotorlossimmediatelyunlessthederivave
isdesignatedandeecveasahedging instrument,inwhicheventthemingoftherecognioninprotor lossdependsonthe natureof
thehedging relaonship andthe natureof the hedged item.
Embedded derivaves
Derivavesembedded in non-derivavehost contractsthatare not nancial assetswithin the scope of IndAS 109 are treatedas separate
derivaveswhentheirrisksandcharacteriscsarenotcloselyrelatedtothoseofthehostcontractsandthehostcontractsarenotmeasured
atFairvalue throughprotor loss.
Financial assetswith embedded derivaves areconsideredin their enretywhendeterminingwhether their cashowsare solelypayment
ofprincipalandinterest.Derivavesembeddedinallotherhostcontractsareseparatedonlyiftheeconomiccharacteriscsandrisksofthe
embedded derivave are not closely related to the economic characteriscs and risks of the host and are measured at fair value through
protor loss.
AnnualReport 2022-23 119
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Hedge accounng:
The Company designates certain derivaves as hedging instruments in respect of foreign currency risk, as either fair value hedges or
cashow hedges. Hedgesof foreignexchangerisk on rm commitmentsareaccountedfor ascash ow hedges.
At the incepon of the hedge relaonship, the enty documents the relaonship between the hedging instrument and the hedged item,
along with its risk management objecves and its strategy for undertaking various hedge transacons. Furthermore, at the incepon of
the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly eecve in oseng changes in
fairvaluesor cash owsof the hedgeditem aributableto the hedgedrisk.
Note 3.6sets out detailsof the fairvaluesof the derivaveinstrumentsused forhedging purposes.
Fair value hedges
Changes infair valueof the designatedporon of derivavesthatqualify as fairvalue hedgesare recognisedin protor loss immediately,
togetherwith any changes in the fairvalue of the hedged asset or liability that are aributableto the hedged risk. The change in the fair
valueofthedesignatedporonofhedginginstrumentandthechangeinthe hedgeditemaributabletothe hedgedriskarerecognisedin
protor loss inthe line item relangtothe hedged item.
Hedge accounng is disconnued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualies
for hedge accounng. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amorsed to
protor loss fromthat date.
Cash ow hedges
The eecve poron of changes in the fair value of derivaves that are designated and qualify as cash ow hedges is recognised in
other comprehensive income and accumulated under the heading of cash ow hedge reserve. The gain or loss relang to the ineecve
poronis recognised immediatelyin protor loss andis included in the “OtherIncome”.
Amounts previouslyrecognised in other comprehensiveincome and accumulatedin equity relang toeecveporon as described above
arereclassiedtoprotorlossintheperiodswhen thehedgeditemaectsprotorloss, inthesameline astherecognisedhedgeditem.
However,when thehedgedforecasttransacon resultsinthe recognionofanon-nancialasset oranon-nancial liability, suchgainsand
losses aretransferred fromequity (but not as a reclassicaonadjustment) andare included in the inial measurementof the costof the
non-nancialasset or non-nancialliability.
Hedge accounng is disconnued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualies
forhedgeaccounng.Anygainorlossrecognisedinothercomprehensiveincomeandaccumulatedinequityatthatmeremainsin equity
andisrecognisedwhentheforecasttransacon isulmatelyrecognised inprotorloss.Whenaforecasttransaconisno longerexpected
tooccur,the gain orloss accumulatedin equity is recognisedimmediatelyin prot orloss.
1B.18 Segment Reporng
The Company is principally engaged in a single business segment viz. commercial vehicles and related components based on nature of
products, risks, returns and the internal business reporng system. The Board of directors of the Company, which has been idened as
being the chief operang decision maker (CODM), evaluates the Company’s performance, allocate resources based on the analysis of the
various performance indicators of the Company as a single unit. Accordingly, there is no other reportable segment in terms of Ind AS 108
‘OperangSegments’.The Companyhasoptedforexemponunder IndAS 108‘OperangSegments’,as thesegment reporngisreported
inits consolidatednancial statements.
1B.19 Assets held for sale
Non-current assets or disposal groups are classied as held for sale if their carrying amount will be recovered principally through a sale
transaconratherthanthroughconnuinguse. Thiscondion isregardedasmet onlywhen theasset isavailableforimmediatesalein its
presentcondionsubject only to termsthat areusual and customaryforsales of such assetand its sale is highly probable.
Non-current assets and disposal groups classied as held for sale are measured at the lower of their carrying amount and fair value less
coststosellanddisclosedseparatelyinbalancesheet.Liabiliesassociatedwithassetsclassiedasheldforsaleareesmatedanddisclosed
separately in the balance sheet.
1B.20 Exceponal Items
TheCompanyconsidersfactorsincludingmateriality,thenatureandfunconoftheitemsofincomeandexpenseindeterminingexceponal
itemand discloses the samein Note 2.8 tothe nancial statements.
120 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1C. Crical accounng judgments and key sources of esmaon uncertainty:
The preparaon of standalonenancial statementsinconformitywith IndAS requiresthe Managementtomakejudgments, esmatesand
assumpons about the carrying amounts of assets and liabilies recognised in the standalone nancial statements that are not readily
apparentfrom other sources. The judgements,esmates and associated assumpons are based on historicalexperience and other factors
includingesmaonofeectsofuncertainfutureeventsthatareconsideredtoberelevant.Actualresultsmaydierfromtheseesmates.
Theesmatesandunderlyingassumponsarereviewedonanongoingbasis.Revisionstoaccounngesmates(accountedonaprospecve
basis) arerecognised in the period in which the esmate isrevised if the revisionaectsonly that period, or in the period of the revision
andfuture periods if therevision aectsbothcurrent andfuture periods.
ThefollowingarethecricaljudgementsandesmaonsthathavebeenmadebytheManagementintheprocessofapplyingtheaccounng
policiesand that havethe mostsignicant eecton the amounts recognisedin thestandalone nancial statement and /or keysourcesof
esmaonuncertainty atthe end of the reporng period that mayhave a signicantrisk of causing a materialadjustment to the carrying
amountsof assets and liabilieswithin the next nancialyear.
Inventories
An inventory provision is recognised for cases where the realisable value is esmated to be lower than the inventory carrying value. The
inventoryprovisionisesmatedtakingintoaccountvariousfactors,includingprevailingsalepricesofinventoryitem,changesintherelated
laws/ emission norms and losses associatedwith obsolete/ slow-moving / redundantinventoryitems. The Company has, based on these
assessments, made adequate provision in the books.
Taxaon
Tax expense is calculated using applicable tax rate and laws that have been enacted or substanally enacted. In arriving at taxable prot
andalltaxbasesofassetsandliabilies,theCompanydeterminesthetaxabilitybasedontaxenactments,relevantjudicialpronouncements
and tax expert opinions, and makes appropriate provisions which includes an esmaon of the likely outcome of any open tax
assessments/ ligaons.Anydierenceis recognisedon closureof assessment or inthe period in which the theyare agreed.
Deferred income tax assets are recognizedto the extent that it is probable that future taxable income will be available against which the
deducbletemporary dierences, unused taxlosses, unabsorbed depreciaonand unused taxcreditscould be ulised.
Provision for product warranty
The product warranty obligaons and esmaons thereof are determined using historical informaon on the type of product, nature,
frequency and average cost of warranty claims and the esmates regarding possible future incidences of product failures. Changes in
esmatedfrequency and amountof future warrantyclaims, which areinherentlyuncertain, canmaterially aectwarrantyexpense.
Impairment of goodwill
ThecarryingamountofgoodwillsignicanttotheCompanyarestatedinNote3.16.Therecoverableamountshavebeendeterminedbased
onvalueinusecalculaonswhichusescashowprojeconscoveringgenerallyaperiodofveyears(whicharebasedonkeyassumpons
such as margins, expected growth rates based on past experience and Management’s expectaons / extrapolaon of normal increase /
steadyterminal growth rate which approximates the long term industry growth rates)and appropriatediscount rates that reects current
marketassessmentsofmevalueofmoneyandrisksspecictotheseinvestments.TheManagementbelievesthatanyreasonablepossible
change in key assumpons on which recoverable amount is based is not expected to cause the aggregate carrying amount to exceed the
aggregaterecoverable amount of thecash generangunit.
Fair value measurements and valuaon processes
Some ofthe assetsand liabiliesaremeasured atfairvaluefornancial reporngpurposes.The Managementdeterminesthe appropriate
valuaontechniquesand inputs forthe fairvalue measurements.
In esmang the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where
Level 1 inputs are not available, third party qualied valuers perform the valuaons. The Management works closely with the qualied
externalvaluerstoestablishthe appropriatevaluaontechniques and inputs tothe model.
Informaon about the valuaon techniques and inputs used in determining the fair value of various assets and liabilies are disclosed in
Notes 3.6 and 3.25.
AnnualReport 2022-23 121
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1.1 PROPERTY, PLANT AND EQUIPMENT AND CAPITAL WORK-IN-PROGRESS
` Crores
DESCRIPTION GROSS CARRYING AMOUNT ( COST ) DEPRECIATION NET
CARRYING
AMOUNT
Property, plant and equipment
(PPE)
01.04.2022 Addions Disposals 31.03.2023 01.04.2022 Charge during
the year
Disposals 31.03.2023 31.03.2023
Freehold land 717.25 - - 717.25 - - - - 717.25
Buildings 1,792.14 40.61 6.17 1,826.58 420.61 76.63 6.16 491.08 1,335.50
Buildings given on lease 13.24 - - 13.24 1.79 0.29 - 2.08 11.16
Plant and equipment 5,523.60 271.59 18.45 5,776.74 2,735.20 449.15 16.51 3,167.84 2,608.90
Plant and equipment given on lease 0.03 - - 0.03 0.01 # - 0.01 0.02
Furnitureand ngs 73.32 0.91 0.07 74.16 53.58 4.78 0.07 58.29 15.87
Furnitureand ngs givenon lease 0.25 - - 0.25 0.25 - - 0.25 -
Vehicles including electric vehicles 57.90 2.67 6.81 53.76 54.45 2.35 6.54 50.26 3.50
Aircra given onlease 77.99 - - 77.99 54.17 9.74 - 63.91 14.08
Oceequipment 173.82 18.90 0.97 191.75 132.36 18.69 0.87 150.18 41.57
Total 8,429.54 334.68 32.47 8,731.75 3,452.42 561.63 30.15 3,983.90 4,747.85
Descripon 01.04.2022 Addions /
Adjustments
Capitalised
during the
year
31.03.2023
Capital work-in-progress(CWIP) 111.11 272.04 334.20 48.95
#amount is below roundingo norms adoptedby the Company.
CWIP Ageing Schedule
` Crores
Parculars Amount in CWIP for a period of
Less than
1 year
1-2 years 2-3 years More than
3 years
Total
Projects in progress 37.54 0.83 0.42 10.16 48.95
Ofthe above, thereareno projects wherethe costhas exceededthe budget.Projectwhose compleon isdelayed(temporarilysuspended) is as follows:
Parculars To be completed in
Less than
1 year
1-2 years 2-3 years More than
3 years
Total
Projectrelangto certainfacilies/
infrastructure development
10.44 - - - 10.44
122 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Title deeds of Freehold land not held in the name of the Company
` Crores
Property
Descripon
Asset
Class
Address Total
Acres
(Approx.)
Gross
/ Net
carrying
value
(Refer
Sub-Note
5)
Reason for not in the name of the Company Property in the name of
Ennore,
Tamil Nadu
Freehold
Land
Kathivakkam High Road,
Ennore, Chennai 600 057
35.22 81.00 This land was acquired from Hinduja Foundries Limited by
the Company by virtue of the amalgamaon order passed
bytheNaonalCompanyLawTribunal,Chennai.Thename
changein the recordsofregistrarhas tobe eected.
Hinduja Foundries Limited
(merged with Ashok Leyland
Limited)
Uppal,
Telangana
Freehold
Land
Industrial Development Area,
Uppal, Ranga Reddy District,
Telangana
15.36 123.00 This land was acquired from Hinduja Foundries Limited by
the Company by virtue of the amalgamaon order passed
bytheNaonalCompanyLawTribunal,Chennai.Thename
changein the recordsofregistrarhas tobe eected.
Hinduja Foundries Limited
(merged with Ashok Leyland
Limited)
Mallavalli,
Andhra
Pradesh
Freehold
Land
Plotno. 2 & 3 of Model
Industrial Park situated
atMallavalliVillage,
Bapulapadu Mandal,
Krishna District
75.00 13.02 The Agreement for Sale has been registered in the name
of the Company. The Conveyance Deed is to be executed
by the Authority upon fullment of the certain condions
by the Company.
Agreement for sale registered
in the name of the Company.
Final Conveyance deed is to be
executed.
Notes:
1. Cost of Buildings as at March 31, 2023 includes:
a) `0.03 croresbeing costof shares inHousing Co-operaveSociety represenng ownership rightsin residenalats andfurniture and ngs thereat.
b) `1.32 croresrepresenngcostof residenalats including undividedinterestin land.
2. For details of assets given as security against borrowings, Refer Note 3.11(a).
3. Foramount of contractualcommitments forthe acquision of PPE,ReferNote3.10(a).
4. Expenses capitalised` Nil - ReferNotes2.4, 2.5 and 2.7to the standalonenancial statements.
5. The grosscarryingvalueand netcarrying valueof buildingslocatedon freeholdand leaseholdland forwhichtle is yettobe transferredin thename of theCompanyamounts to
` 221.78 crores and `186.61croresrespecvely.
AnnualReport 2022-23 123
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1.1 PROPERTY, PLANT AND EQUIPMENT AND CAPITAL WORK-IN-PROGRESS
` Crores
DESCRIPTION GROSS CARRYING AMOUNT ( COST ) DEPRECIATION NET
CARRYING
AMOUNT
Property, plant and equipment
(PPE)
01.04.2021 Addions Disposals Reclassied
as held for
sale (Refer
Note 1.5A)
31.03.2022 01.04.2021 Charge
during the
year
Disposals Reclassied
as assets
held for
sale (Refer
Note 1.5A)
31.03.2022 31.03.2022
Freehold land 732.18 0.22 15.15 - 717.25 - - - - - 717.25
Buildings 1,770.67 33.06 10.61 0.98 1,792.14 358.68 72.60 10.58 0.09 420.61 1,371.53
Buildings given on lease 13.24 - - - 13.24 1.50 0.29 - - 1.79 11.45
Plant and equipment 5,249.20 294.43 19.62 0.41 5,523.60 2,295.93 450.80 11.50 0.03 2,735.20 2,788.40
Plant and equipment given on lease 0.03 - - - 0.03 0.01 # - - 0.01 0.02
Furnitureand ngs 73.63 0.35 0.54 0.12 73.32 48.85 4.96 0.20 0.03 53.58 19.74
Furnitureand ngs givenon lease 0.25 - - - 0.25 0.25 - - - 0.25 -
Vehicles including electric vehicles 144.95 0.25 2.37 84.93 57.90 57.96 16.20 1.93 17.78 54.45 3.45
Aircra given onlease 77.99 - - - 77.99 44.43 9.74 - - 54.17 23.82
Oceequipment 170.36 7.42 3.90 0.06 173.82 115.23 20.62 3.48 0.01 132.36 41.46
Total 8,232.50 335.73 52.19 86.50 8,429.54 2,922.84 575.21 27.69 17.94 3,452.42 4,977.12
Descripon 01.04.2021 Addions/
Adjustment
Capitalised
during the
year
Reclassied
as held for
sale (Refer
Note 1.5A)
31.03.2022
Capitalwork-in-progress (CWIP) 228.78 218.87 335.73 0.81 111.11
#amount is below roundingo norms adoptedby the Company.
CWIP Ageing Schedule
` Crores
Parculars Amount in CWIP for a period of Total
Less than
1 year
1-2 years 2-3 years More than
3 years
Projects in progress 97.27 2.29 2.22 9.33 111.11
Ofthe above thereareno projects wherethe costhas exceededthe budget.Projectwhere compleonis delayedis as follows:
Parculars To be completed in Total
Less than
1 year
1-2 years 2-3 years More than
3 years
Projectrelangto certainfacilies/
infrastructure development
10.54 - - - 10.54
124 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Title deeds of Freehold land not held in the name of the Company
` Crores
Property
Descripon
Asset
Class
Address Total
Acres
(Approx.)
Gross
/ Net
carrying
value
(Refer
Sub-Note
5)
Reason for not in the name of the Company Property in the name of
Ennore,
Tamil Nadu
Freehold
Land
Kathivakkam High Road,
Ennore, Chennai 600 057
35.22 81.00 This land was acquired from Hinduja Foundries Limited by
the Company by virtue of the amalgamaon order passed
bytheNaonalCompanyLawTribunal,Chennai.Thename
changein the recordsofregistrarhas tobe eected.
Hinduja Foundries Limited
(merged with Ashok Leyland
Limited)
Uppal,
Telangana
Freehold
Land
Industrial Development Area,
Uppal, Ranga Reddy District,
Telangana
15.36 123.00 This land was acquired from Hinduja Foundries Limited by
the Company by virtue of the amalgamaon order passed
bytheNaonalCompanyLawTribunal,Chennai.Thename
changein the recordsofregistrarhas tobe eected.
Hinduja Foundries Limited
(merged with Ashok Leyland
Limited)
Mallavalli,
Andhra
Pradesh
Freehold
Land
Plotno. 2 & 3 of Model
Industrial Park situated
atMallavalliVillage,
Bapulapadu Mandal, Krishna
District
75.00 13.02 The Agreement for Sale has been registered in the name
of the Company. The Conveyance Deed is to be executed
by the Authority upon fullment of the certain condions
by the Company.
Agreement for sale registered
in the name of the Company.
Final Conveyance deed is to be
executed.
Notes:
1. Cost of Buildings as at March 31, 2022 includes:
a) `0.03 croresbeing costof shares inHousing Co-operaveSociety represenng ownership rightsin residenalats andfurniture and ngs thereat.
b) `1.32 croresrepresenngcostof residenalats including undividedinterestin land.
2. For details of assets given as security against borrowings, Refer Note 3.11(a).
3. Foramount of contractualcommitments forthe acquision of PPE,ReferNote3.10(a).
4. Expenses capitalised` Nil - ReferNotes2.4, 2.5 and 2.7to the standalonenancial statements.
5. The grosscarryingvalueand netcarrying valueof buildingslocatedon freeholdand leaseholdland forwhichtle is yettobe transferredin thename of theCompanyamounts to
` 217.76 crores and `191.20croresrespecvely.
AnnualReport 2022-23 125
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1.1A RIGHT-OF-USE ASSET ` Crores
Descripon Net Carrying
Amount
01.04.2022
Addions Closure /
Pre closure
Depreciaon Net Carrying
Amount
31.03.2023
Leasehold Land 256.85 - 54.15 2.91 199.79
Building 19.81 11.81 - 8.13 23.49
Plant and equipment 6.46 - - 1.00 5.46
Vehicle 13.46 - - 5.22 8.24
Total 296.58 11.81 54.15 17.26 236.98
Title deeds of Leasehold land not held in the name of the Company ` Crores
Property
Descripon
Asset
Class
Address Total
Acres
(Approx.)
Gross
carrying
value *
(Also
Refer
Note 1.1
Sub -
Note 5)
Net
carrying
value *
(Also
Refer
Note 1.1
Sub -
Note 5)
Reason for not in the name of
the Company
Property in the name
of
Sriperumbudur,
Tamil Nadu
Leasehold
Land
Plot Nos. Phase II,
K-1,K-2SIPCOT
Industrial Park,
Sriperumbudur,
Tamil Nadu
79.44 11.47 10.63 Theleaseholdrightswereoriginally
granted to Hinduja Foundries
Limited by State Industries
Promoon Corporaon of
TamilnaduLimitedandacquiredby
the Company vide amalgamaon
order passed by the Naonal
Company Law Tribunal, Chennai.
Thenamechangeintherecordsof
registrar has tobe eected.
Hinduja Foundries
Limited (merged with
Ashok Leyland Limited)
Pillaipakkam,
Tamil Nadu
(Refer
Sub-Note6)
Leasehold
Land
PlotNo.A-1/A
SIPCOTIndustrial
Park, Pillaipakkam,
Sriperumbudur,
Tamil Nadu
113.00 48.96 46.38 Theleaseholdrightswereoriginally
granted to Ashok Leyland Nissan
VehiclesLimitedbyStateIndustries
Promoon Corporaon of
TamilnaduLimitedandacquiredby
the Company vide amalgamaon
order passed by the Naonal
Company Law Tribunal, Chennai.
Thenamechangeintherecordsof
registrar has tobe eected.
Ashok Leyland Nissan
Vehicles Limited
(merged with Ashok
Leyland Limited)
Bhandara,
Maharashtra
Leasehold
Land
PO Box 15,
Plot No.1, MIDC
Industrial Area,
Gadegao Lakhani
Taluk, Bhandara,
Maharashtra
15.82 0.01 0.01 ThisisalandleasedtotheCompany
by the Maharashtra Industrial
development Corporaon.
However, a poron of the land
(6.40 hectares) occupied and used
by the Company for factory building
has been considered unauthorised
being a Forest Land. The Company
had approached the Mumbai High
Court and subsequently pursuant
to its orders has applied for the
regularisaon of the said poron
of forest land in exchange of
alternatelandfor aorestaon.
Ashok Leyland Limited
(underregularisaon)
*excludessecurity deposit
Notes:
1. Escalaonclause- the percentage of escalaon is up to a maximumof 15%.
2. Discounngrateused forthe purposeof compung righttouse asset rangesfrom6%to8.50%.
3. Rental amount per annum ranges from ` 0.01 crores to `1.87crores,whichalsocarries aclauseforextensionofagreementbasedonmutualunderstanding
between Lessor and Lessee.
4. Thelease period rangesfrom2yearsto90yearsoverwhich the righttouse asset is depreciatedon a straightline basis.
5. Leasetermsarenegoatedonanindividualbasisandcontainawiderangeofdierenttermsandcondions.Theleaseagreementsdonotimposeanymajor
covenants other than the security interests in the leased assets that are held by the lessor. Leased assets are not used as security for borrowing purposes.
6. During the year a poron of leasehold land has been surrendered to State Industries Promoon Corporaonof Tamil Nadu (SIPCOT) and surrender value is
receivedbythe Company. The Companyis in the process of registeringthe modied lease deed forthebalance poron of leasehold land.
126 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1.1A RIGHT-OF-USE ASSET ` Crores
Descripon Net Carrying
Amount
01.04.2021
Addions Closure /
Pre closure
Reclassied as
Held for sale
(Refer Note 1.5A)
Depreciaon Net Carrying
Amount
31.03.2022
Leasehold Land 259.98 - - - 3.13 256.85
Building 21.71 13.34 0.99 5.87 8.38 19.81
Plant and equipment 7.47 - - - 1.01 6.46
Vehicle 0.38 16.66 - - 3.58 13.46
Total 289.54 30.00 0.99 5.87 16.10 296.58
Title deeds of Leasehold land not held in the name of the Company ` Crores
Property
Descripon
Asset
Class
Address Total
Acres
(Approx.)
Gross
carrying
value *
(Also
Refer
Note 1.1
Sub-
Note 5)
Net
carrying
value *
(Also
Refer
Note 1.1
Sub-
Note 5)
Reason for not in the name of
the Company
Property in the name
of
Sriperumbudur,
Tamil Nadu
Leasehold
Land
Plot Nos. Phase II,
K-1,K-2
SIPCOTIndustrial
Park,
Sriperumbudur,
Tamil Nadu
79.44 11.47 10.77 Theleaseholdrightswereoriginally
granted to Hinduja Foundries
Limited by State Industries
Promoon Corporaon of
TamilnaduLimitedandacquiredby
the Company vide amalgamaon
order passed by the Naonal
Company Law Tribunal, Chennai.
Thenamechangeintherecordsof
registrar has tobe eected.
Hinduja Foundries
Limited (merged with
Ashok Leyland Limited)
Pillaipakkam,
Tamil Nadu
Leasehold
Land
PlotNo.A-1/A
SIPCOTIndustrial
Park, Pillaipakkam,
Sriperumbudur,
Tamil Nadu
210.00 90.99 87.16 The leasehold rights were
originally granted to Ashok
Leyland Nissan Vehicles Limited
by State Industries Promoon
Corporaon of Tamilnadu Limited
and acquired by the Company vide
amalgamaonorderpassed by the
Naonal Company Law Tribunal,
Chennai. The name change in
the records of registrar has to be
eected.
Ashok Leyland Nissan
Vehicles Limited
(merged with Ashok
Leyland Limited)
Bhandara,
Maharashtra
Leasehold
Land
PO Box 15,
Plot No.1, MIDC
Industrial Area,
Gadegao Lakhani
Taluk, Bhandara,
Maharashtra
15.82 0.01 0.01 ThisisalandleasedtotheCompany
by the Maharashtra Industrial
development Corporaon.
However, a poron of the land
(6.40 hectares) occupied and used
by the Company for factory building
has been considered unauthorised
being a Forest Land. The Company
had approached the Mumbai High
Court and subsequently pursuant
to its orders has applied for the
regularisaon of the said poron
of forest land in exchange of
alternatelandfor aorestaon.
Ashok Leyland Limited
(underregularisaon)
*excludessecurity deposit
Notes:
1. Escalaonclause- the percentage of escalaon is up to a maximumof 15%.
2. Discounngrateused forthe purposeof compung righttouse asset rangesfrom6%to8%.
3. Rental amount per annum ranges from ` 0.01 crores to `1.36crores,whichalsocarries aclauseforextensionofagreementbasedonmutualunderstanding
between Lessor and Lessee.
4. Thelease period rangesfrom2yearsto90yearsoverwhich the righttouse asset is depreciatedon a straightline basis.
5. Leasetermsarenegoatedonanindividualbasisandcontainawiderangeofdierenttermsandcondions.Theleaseagreementsdonotimposeanymajor
covenants other than the security interests in the leased assets that are held by the lessor. Leased assets are not used as security for borrowing purposes.
AnnualReport 2022-23 127
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1.2 OTHER INTANGIBLE ASSETS AND INTANGIBLE ASSETS UNDER DEVELOPMENT
` Crores
DESCRIPTION GROSS CARRYING AMOUNT (COST) AMORTISATION NET
CARRYING
AMOUNT
Other intangible assets 01.04.2022 Addions Disposals 31.03.2023 01.04.2022 Charge during
the year
Disposals 31.03.2023 31.03.2023
Computersoware
- Developed 103.38 - - 103.38 100.11 3.27 - 103.38 -
- Acquired 129.15 10.31 0.19 139.27 109.81 11.07 0.19 120.69 18.58
Technical knowhow
- Developed 1,314.49 134.88 - 1,449.37 486.11 130.63 - 616.74 832.63
- Acquired 40.48 - - 40.48 14.17 8.10 - 22.27 18.21
Total 1,587.50 145.19 0.19 1,732.50 710.20 153.07 0.19 863.08 869.42
Descripon 01.04.2022 Addions /
Adjustments
Capitalised
during the
year
31.03.2023
Intangible assets under development (IAUD) 83.16 145.60 145.19 83.57
Ageing of Intangible assets under development
Parculars Amount in IAUD for a period of Total
Less than
1 year
1-2 years 2-3 years More than
3 years
Projects in progress 47.36 11.45 3.16 21.60 83.57
Ofthe above, thereareno projects wherethe costhas exceededthe budget.Projectswhose compleon isdelayed(includes temporarilysuspended projects)is as follows:
Parculars To be completed in Total
Less than
1 year
1-2 years 2-3 years More than
3 years
Projectsrelangto Technical knowhow-
Product development
46.37 - - - 46.37
Notes:
1. Addions toother intangibleassets and Intangibleassets under developmentinclude:
Expenses capitalised` 131.88 crores- Refer Notes2.4, 2.5 and 2.7to the standalonenancial statements.
2. Foramount of contractualcommitments forthe acquision of intangibleassets,ReferNote3.10(a).
128 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1.2 OTHER INTANGIBLE ASSETS AND INTANGIBLE ASSETS UNDER DEVELOPMENT
` Crores
DESCRIPTION GROSS CARRYING AMOUNT (COST) AMORTISATION NET
CARRYING
AMOUNT
Other intangible assets 01.04.2021 Addions Disposals 31.03.2022 01.04.2021 Charge during
the year
Disposals 31.03.2022 31.03.2022
Computersoware
- Developed 114.21 - 10.83 103.38 88.82 15.44 4.15 100.11 3.27
- Acquired 130.18 4.39 5.42 129.15 99.98 14.17 4.34 109.81 19.34
Technical knowhow
- Developed* 1,300.79 146.82 133.12 1,314.49 389.50 123.74 27.13 486.11 828.38
- Acquired 40.48 - - 40.48 6.07 8.10 - 14.17 26.31
Total 1,585.66 151.21 149.37 1,587.50 584.37 161.45 35.62 710.20 877.30
*ReferSub-Note6 of Note1.12 to the standalonenancial statements
Descripon 01.04.2021 Addions /
Adjustments
Capitalised
during the
year
31.03.2022
Intangible assets under development (IAUD) 143.07 91.30 151.21 83.16
Ageing of Intangible assets under development
Parculars Amount in IAUD for a period of Total
Less than
1 year
1-2 years 2-3 years More than
3 years
Projects in progress 38.69 12.94 19.77 11.76 83.16
Ofthe above, thereareno projects wherethe costhas exceededthe budget.Projectswhose compleon isdelayedis as follows:
Parculars To be completed in Total
Less than
1 year
1-2 years 2-3 years More than
3 years
Projectsrelangto Technical knowhow-
Product development
54.80 - - - 54.80
Notes:
1. Addions toother intangibleassets and Intangibleassets under developmentinclude:
Expenses capitalised` 87.60 crores- Refer Notes2.4, 2.5 and 2.7to the standalonenancial statements.
2. Foramount of contractualcommitments forthe acquision of intangibleassets,ReferNote3.10(a).
AnnualReport 2022-23 129
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
1.3 NON-CURRENT FINANCIAL ASSETS - INVESTMENTS
DESCRIPTION As at March 31, 2023 As at March 31, 2022
Nos ` Crores Nos ` Crores
A) Investments in Equity Instruments (unquoted)
(fully paid up unless otherwise stated)
1) Subsidiaries (at cost)
a) Equity Shares of ` 10 each
Global TVSBus Body BuildersLimited 66,00,000 14.50 66,00,000 14.50
HLF Services Limited 27,000 0.56 27,000 0.56
AshleyAviaonLimited 3,87,00,000 37.70 2,22,76,290 21.28
Albonair(India) PrivateLimited (Refer Sub-Note3) 4,50,00,000 56.15 4,50,00,000 56.15
Hinduja LeylandFinance Limited (Refer Sub-Note4 and 9) 32,32,46,338 1,931.16 32,32,46,338 1,931.16
Hinduja Tech Limited(ReferSub-Note3) 15,39,50,000 167.57 15,39,50,000 167.57
b) Equity Shares of ` 10 each
Vishwa Buses and Coaches Limited (2022: ` 5.50 each
partly paid up face value ` 10.00 each) [Conversion of
partly paid up equity shares of ` 5.50 each to fully paid up
equity shares of `10 each] 3,64,00,000 36.40 6,00,00,000 33.00
c) Equity Shares of ` 100 each
GulfAshley Motor Limited(ReferSub-Note3) 27,66,428 27.94 27,66,428 27.94
d) Equity Shares
OptarePlc(ReferSub-Note3)
Ordinaryshares of BrishPence 0.1each 88,15,37,04,162 931.58 88,15,37,04,162 931.58
Deferredsharesof Brish Pence0.9 each 19,55,57,828 - 19,55,57,828 -
e) Deemed Equity
SwitchMobility AutomoveLimited (Refer Sub-Note5) - 129.60 - -
f) Equity shares of Naira 1 each
Ashok Leyland (Nigeria) Limited 99,99,999 0.36 99,99,999 0.36
g) Equity shares of USD 20 each
Ashok Leyland (Chile) S.A. 28,499 3.76 28,499 3.76
h) Equity Shares of Euro 1 each
AlbonairGmbH (ReferSub-Note3 and 10) 5,24,95,000 460.09 5,24,95,000 460.09
i) Equity shares of UAE Dirhams of 1,000 each
AshokLeyland (UAE)LLC (Refer Sub-Note 3) 35,770 110.49 35,770 110.49
(including benecialinterestof ` 56.41 crores)
2) Associates (at cost)
a) Equity Shares of ` 10 each
AshokLeyland DefenceSystemsLimited(ReferSub-Note 3) 50,27,567 5.03 50,27,567 5.03
Mangalam Retail Services Limited 37,470 0.04 37,470 0.04
b) Equity shares of Srilankan Rupees 10 each - (quoted)
Lanka Ashok Leyland, Plc 10,08,332 0.57 10,08,332 0.57
3) Joint Ventures (at cost)
Equity Shares of ` 10 each
AshleyAlteams India Limited(ReferSub-Note 3) 7,59,47,500 46.51 7,59,47,500 46.51
AshokLeyland John DeereConstrucon EquipmentCompany
PrivateLimited (under liquidaon) 17,27,270 1.73 17,27,270 1.73
GRODigital PlaormsLimited 1,00,00,000 10.00 1,00,00,000 10.00
Sub Total 3,971.74 3,822.32
Less: Impairment in Value of Investments
Ashok Leyland John Deere Construcon Equipment Company
PrivateLimited (under liquidaon) 1.73 1.73
AshleyAviaonLimited 37.70 21.28
Gulf Ashley Motor Limited 12.34 -
OptarePlc(ReferNote3.25) - -
AlbonairGmbH (ReferSub-Note10) 460.09 460.09
Albonair (India) Private Limited - 12.34
Ashok Leyland (Chile) S.A. 3.76 3.76
Aggregate of Impairment in Value of Investments 515.62 499.20
Sub Total 3,456.12 3,323.12
130 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
DESCRIPTION As at March 31, 2023 As at March 31, 2022
Nos ` Crores Nos ` Crores
4) Others (At Fair value through prot or loss)
a) Equity Shares of ` 10 each
Rajalakshmi Wind Energy Limited
(formerly Ashok Leyland Wind Energy Limited) 78,12,950 9.12 78,12,950 9.12
Chennai WillingdonCorporateFoundaon(Cost ` 900) 100 # 100 #
Hinduja Energy(India) Limited(ReferSub-Note10) 6,11,47,058 147.00 6,11,47,058 81.33
Kamachi Industries Limited 5,25,000 - 5,25,000 0.53
ARS Energy Private Limited - - 640 0.01
Prathama Solarconnect Energy Private Limited 1,86,56,912 18.67 1,86,56,912 18.67
HRVaigai PrivateLimited(Cost ` 26,000) 2,600 # - -
b) Equity shares of ` 100 each partly paid-up
Adyar Property Holding Co. Limited (` 65 paid up)
[Cost ` 19,500] 300 # 300 #
Sub Total 174.79 109.66
Total Investments in Equity Instruments (net) 3,630.91 3,432.78
B) Investments in Preference Shares (At Fair value through prot or
loss) (unquoted)
1) Subsidiaries
Ashok Leyland (UAE) LLC
6%Non-Cumulave Non-ConverbleRedeemable
Preference shares of AED 1,000 each 23,000 42.89 23,000 44.17
AshleyAviaonLimited
6%Non-Cumulave RedeemableNon-Converble
Preference shares of ` 10 each - - 40,00,000 0.07
6%Cumulave RedeemableNon-ConverblePreference
shares of ` 10 each - - 18,00,000 #
SwitchMobility AutomoveLimited (Refer Sub-Note5)
8.5%Non-Cumulave Non-ConverbleRedeemable
Preference shares of ` 100 each 3,01,00,000 171.40 - -
Hinduja Tech Limited
1%Non-Cumulave Non-ConverbleRedeemable
Preference shares of ` 10 each 2,39,00,000 15.40 2,39,00,000 16.11
2) Associates
Ashok Leyland Defence Systems Limited
6%Non-Cumulave Non-ConverbleRedeemable
Preference shares of ` 10 each 1,00,00,000 6.93 1,00,00,000 6.89
Total Investments in Preference Shares 236.62 67.24
C) Investment in Special Limited Partnership (At Fair value through
prot or loss)
Vasuki SCSp (Refer Sub-Note 7) 24.65 21.56
24.65 21.56
Total 3,892.18 3,521.58
#amount is below roundingo norms adoptedby the Company.
AnnualReport 2022-23 131
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Notes:
1. Parculars March 31, 2023 March 31, 2022
` Crores ` Crores
Aggregate value of unquoted investments (including deemed equity investment of ` 129.60 crores) 4,407.23 4,020.21
Aggregate value of quoted investments 0.57 0.57
Aggregate value of impairment in value of investments 515.62 499.20
2. Investments arefully paid-up unless otherwise stated.
3. The equity investments in a joint venture company can be transferred / pledged / disposed o / encumbered only with the consent of
banks/nancialinstuonswhohavegivenloanstothejointventurecompany.Theequityinvestmentsincertainsubsidiariesandassociates
canbe disposed o only withthe consent ofbanks / nancial instuonswho havegiven loansto these companies.
4. Lock-in commitment inthe shareholdersagreement:[Also ReferNote 3.10(c)]
Parculars No of Shares
Hinduja Leyland Finance Limited 2,84,72,743
5. During the year, Switch Mobility Automove Limited, a step-down subsidiary of the Company, seled the consideraon on transfer
of Electric vehicle business along with the interest accrued and working capital adjustments thereon, aggregang to ` 301 crores by
issuing 3,01,00,000 8.5% Non-Cumulave Non-Converble Redeemable Preference Shares (NCRPS), at a nominal value and issue price of
` 100/- each. Consequently, the Company recogniseda deemed equity poron on fair valuaonof the aforemenonedpreference shares
ofSwitch Mobility AutomoveLimited,being a transaconbetween commoncontrolenes. Also refer Note3.8.
6. Numberof shares heldby the Companyincludes joint holding /benecial interest.
7. TheCompany holds 9.09%of Class A units inthe special limited partnership.
8. The investmentsmade by the Company is in compliance with secon 180 and 186 with respect to layers of investment permied under
the Companies Act, 2013.
9. Hinduja Leyland Finance Limited (HLFL), a subsidiary of the Company has made an applicaon to BSE Limited (Stock Exchange) for the
proposed Merger with Nxtdigital Limited on November 25, 2022 and the said applicaon is under process. HLFL is also in the process of
lingapplicaontoCompeonCommissionofIndia(CCI)fortheproposedmergerandinthisregardhadapre-lingconsultaonmeengs
withCCIduringMarch/April2023.NxtdigitalLimited(TransfereeCompany,whosenamehasbeenchangedtoNDLVenturesLimitedw.e.f.
April 20, 2023) has also submied applicaon to Bombay Stock Exchange(BSE) and Naonal Stock Exchangeof India Ltd(NSE) where its
sharesarelistedandformergertheywillbealsolingapplicaontoCCIfortheproposedmerger.NDLVenturesLimitedhasalsosubmied
applicaonto RBIfor registraon as NBFCon December 23, 2022.
10. The Company has recorded a gain on fair valuaon of equity investment in Hinduja Energy (India) Limited (HEIL) amounng to
` 65.67 crores (March 31, 2022: loss on fair valuaon ` 107.13 crores) under exceponal item based on business plan of HEIL, external
factors and the independent valuers report.
During the year ended March 31, 2022, the Company has recorded an impairment loss on equity investment in its subsidiary viz
Albonair GmbH (Cash Generang Unit (CGU)) amounng to ` 239.36 crores based on future business plan, internal and external factors
and the independent valuers report.
The Company has used discounted cash ow method for arriving at the value in use of the CGU. The discountedcash ow method uses
post tax discount rate ranging between 10% - 20% for current and previous years for the aforemenoned enes. Both pre tax discount
rate and post taxdiscountrategivesthe same recoverable amount.
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.4 NON-CURRENT FINANCIAL ASSETS - TRADE RECEIVABLES
(Unsecured, considered good)
Tradereceivables
Relatedpares (Refer Note3.8) 0.63 0.03
0.63 0.03
Refer Note 1.10 for ageing of trade receivables
Note:
Theseare carriedat amorsed cost.
132 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.5 NON-CURRENT - OTHER FINANCIAL ASSETS
(Unsecured, considered good unless otherwise stated)
a) Other receivables*
Considered good - -
Considereddoubul 3.99 3.99
Less: Allowancefordoubul receivables 3.99 3.99
- -
b) Derivavesdesignatedas hedging instrumentscarried atfairvalue 43.14 26.69
c) Others
i. Employee advances 0.94 2.13
ii. Others(includes refund receivable,etc) 14.17 14.17
15.11 16.30
d) Security deposits
Considered good 39.05 25.64
Considereddoubul 0.43 0.23
Less: Allowancefordoubul receivables 0.43 0.23
39.05 25.64
97.30 68.63
Ofthe Employee advancesabove,
Duefrom Ocers# - 0.00
*includes receivableon sale of windmill undertakingof the Company.
#amount is below roundingo norms adoptedby the Company.
Notes:
1. These(exceptderivaves)arecarriedatamorsedcost.Derivavesarecarriedatfairvaluethroughprotorloss/othercomprehensive
income.
2. Movementin allowancefor doubulother receivablesis as follows:
Parculars March 2023 March 2022
Opening 3.99 4.34
Add: Addions - -
Less: Ulisaons/ Reversals - 0.35
Closing 3.99 3.99
3. Movementin allowancefor doubulsecurity deposits is as follows:
Parculars March 2023 March 2022
Opening 0.23 -
Add: Addions 0.33 0.23
Less: Ulisaons/ Reversals 0.13 -
Closing 0.43 0.23
AnnualReport 2022-23 133
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.5A ASSETS CLASSIFIED AS HELD FOR SALE
Property, plantand equipment and Capitalwork-in-progress (netof provisionfor assetsheld for
salerelang toEMAAS business) (Refer Notes 1.1and 1.2) 47.15 42.53
Right of use asset (Refer Note 1.1A) 5.87 5.87
Non-currentand currentnancial assets(includes tradeand other receivables,etc) 13.82 11.74
Non-currentand currentassets 0.73 0.66
Inventories 4.35 2.83
71.92 63.63
1.5B LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE
Non-currentand currentnancial liabilies (includestrade andother payables,etc) 10.76 9.90
Non-currentand currentliabilies (includes contract liabilies, etc) 0.05 1.74
Non-currentand currentprovision(includes provisionforemployee benets) 0.06 0.14
10.87 11.78
Note:
In the meeng held on November 12, 2021, the Board of Directors of the Company had approved the transfer of “Electric Vehicle
Mobility As A Service (EMAAS)” business to Ohm Global Mobility Private Limited (step down Subsidiary of the Company) with eect from
October1,2021.The Companyhassincereceivedtheregulatoryapprovalsandaccordinglyclassiedthe associatedassetsandliabilies as
“Heldfor sale”. Theprovision relangto EMAASbusiness classied as assetsheld for saleis shown under Note2.8.
The fair value of the EMAAS business was determined using the Income approach. In this approach, the discounted cash ow method is
usedtocapturethepresentvalueoftheexpectedfutureeconomicbenetstobederivedfromthebusiness.Thisisalevel3measurement
asper the fairvalue hierarchyset outin fair valuemeasurementdisclosures. Thekeyinputs are:
a) the esmatedcash ows;and
b) the discountratetocompute the presentvalueof the futureexpectedcash ows
Thetransferof businesswill be consummatedon receiptof certain otherapprovalsexpectedwithin the nexttwelve months.
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.6A NON-CURRENT - INCOME TAX ASSETS (NET)
Advanceincome tax(netof provision) 133.91 103.42
133.91 103.42
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.6B CURRENT TAX LIABILITIES (NET)
Provisionfortaxaon(netof advancetax) 123.47 123.47
123.47 123.47
134 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.7 OTHER NON-CURRENT ASSETS
(Unsecured, considered good unless otherwise stated)
a) Capital advances
Considered good 41.24 46.98
Considered doubul 1.66 0.82
Less: Allowance fordoubul advances 1.66 0.82
41.24 46.98
b) Balances with GovernmentAuthories - Goodsand Services,customs, porttrust, central
excise etc. (includingpaid under protest)
Considered good 5.98 8.34
Considered doubul 2.90 2.90
Less: Allowance fordoubul balances 2.90 2.90
5.98 8.34
c) Others
i. Salestax paid(including paid under protest) 213.53 207.41
ii. Otheradvances(includes prepaid expenses,etc.) 66.57 75.08
280.10 282.49
327.32 337.81
Note :
1. Movementin allowancefor doubuladvances towards capital advancesis as follows:
Parculars March 2023 March 2022
Opening 0.82 1.91
Add: Addions 0.84 -
Less: Ulisaons/ Reversals - 1.09
Closing 1.66 0.82
2. Movement in allowance for doubul balances towards balances with Government Authories - Goods and services, customs,
porttrust, centralexciseetc.is as follows:
Parculars March 2023 March 2022
Opening 2.90 -
Add: Addions /Reclassicaon - 2.90
Less: Ulisaons - -
Closing 2.90 2.90
AnnualReport 2022-23 135
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.8 INVENTORIES
(a) Raw materials and components 1,036.53 894.86
(b) Work-in-progress 284.43 266.75
(c) Finished goods 1,099.34 602.79
(d) Stock-in-trade
Spare parts and auto components (including works made) 264.72 220.46
(e) Stores, spares and consumable tools 89.46 90.34
2,774.48 2,075.20
Notes:
March 2023 March 2022
1. Goods-in-transitincluded above areas below:
(a) Raw materials and components 6.60 9.65
(b) Stock-in-trade
Spares parts and auto components (including works made) 2.81 #
2. Cost of inventories (including cost of stock-in-trade purchased and write down of inventories) recognised as an expense during the
year are `27,849.15crores(2021-22: ` 16,761.07 crores).
3. Fordetails of assetsgiven as securityagainstborrowings -ReferNotes3.11 and 3.12
#Amount below roundingo norms of theCompany
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.9 CURRENT FINANCIAL ASSETS - INVESTMENTS
(Unquoted)
Units in mutual funds 2,771.42 1,298.05
(March 31, 2023: 1,90,75,596.56 units March 31, 2022: 3,16,00,536.79 units)
2,771.42 1,298.05
Note:
Theseare carriedat fairvalue throughprotor loss
136 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.10 CURRENT FINANCIAL ASSETS - TRADE RECEIVABLES
(Unsecured)
Considered good
Relatedpares (Refer Note3.8) 259.75 163.46
Others 3,802.33 2,932.89
4,062.08 3,096.35
Considereddoubul
Others 117.43 116.51
117.43 116.51
Less: Loss allowance 117.43 116.51
4,062.08 3,096.35
Ageing for trade receivable (Refer Notes 1.4 and 1.10) ` Crores
Year ended March 31, 2023 Outstanding for following periods from due date of payment
Not due Less than
6 months
6 months-
1 year
1-2 years 2-3 years More than
3 years
Total
(i) Undisputed Trade Receivables
- considered good 3,389.54 348.94 129.17 6.89 3.80 31.27 3,909.61
(ii) Disputed Trade Receivables
- considered good - 13.02 6.05 17.94 19.27 214.25 270.53
Gross Receivables 3,389.54 361.96 135.22 24.83 23.07 245.52 4,180.14
Less: Provisions 117.43
Total
4,062.71
Year ended March 31, 2022 Outstanding for following periods from due date of payment
Not due Less than
6 months
6 months-
1 year
1-2 years 2-3 years More than
3 years
Total
(i) Undisputed Trade Receivables
- consideredgood 2,657.96 231.74 7.03 8.97 4.83 34.57 2,945.10
(ii) Disputed Trade Receivables
- consideredgood - 23.65 9.99 19.27 22.48 192.40 267.79
Gross Receivables 2,657.96 255.39 17.02 28.24 27.31 226.97 3,212.89
Less: Provisions 116.51
Total 3,096.38
Notes :
1. Movement in loss allowance is as follows:
Parculars March 2023 March 2022
Opening 116.51 129.09
Add:Addions 6.39 15.35
Less:Ulisaons / Reversals 5.47 27.93
Closing 117.43 116.51
2. Theseare carriedat amorsed cost.
3. Fordetailsof assets givenas security againstborrowings- ReferNotes 3.11 and 3.12.
AnnualReport 2022-23 137
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.11A. CASH AND CASH EQUIVALENTS
i) Balance with banks:
a) In current accounts 7.77 21.43
b) In cash credit accounts 446.22 472.73
c) In deposit accounts* - 500.00
ii) Cash and stamps on hand 0.12 0.09
454.11 994.25
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.11B. BANK BALANCES OTHER THAN (A) ABOVE
i) Unclaimed dividend accounts (earmarked) 10.30 10.51
ii) Escrow bank account (earmarked) 36.88 42.20
47.18 52.71
*This representsdeposits with original maturityof less than orequal to 3 months.
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.12 CURRENT - OTHER FINANCIAL ASSETS
(Unsecured, considered good unless otherwise stated)
a) Interest accrued 8.88 13.23
b) Employee advances 22.99 20.55
c) Derivavesdesignatedas hedging instrumentscarriedat fairvalue 55.70 19.14
d) Relatedpares (Refer Note3.8)
i. Advances in foreign currency # 0.85 0.00
ii. Otherreceivable - 6.84
0.85 6.84
e) Intercorporate deposits
RelatedPares(Refer Note 3.8) 200.00 -
f) Revenue grants receivable
Considered good 25.69 38.03
Considereddoubul 8.89 8.89
34.58 46.92
Less: Allowancefordoubul receivable 8.89 8.89
25.69 38.03
g) Receivable from Governmentauthories
Considered good 3.75 11.25
Considereddoubul 3.90 3.90
7.65 15.15
Less:Allowancefor doubulamount 3.90 3.90
3.75 11.25
h) Others(includes expenses recoverable, etc.)
Considered good 60.62 104.51
Considereddoubul 36.55 20.51
97.17 125.02
Less:Allowancefor doubulamount 36.55 20.51
60.62 104.51
138 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.12 CURRENT - OTHER FINANCIAL ASSETS (Contd.)
i) Security deposits
Considered good 2.96 3.02
Considereddoubul 0.07 -
3.03 3.02
Less:Allowancefor doubuldeposits 0.07 -
2.96 3.02
j) Bank deposits with original maturity of greater than 12 months 200.00 500.00
k) Receivable on slump sale from related party - 279.01
(Refer Notes 1.3 and 3.8)
581.44 995.58
Ofthe Employee advancesmenoned above
Duefrom Ocers# - 0.00
#amount is below roundingo norms adoptedby the Company.
Notes:
1. These(exceptderivaves)arecarriedatamorsedcost.Derivavesarecarriedatfairvaluethroughprotorloss/othercomprehensive
income.
2. Movementin Allowancefor doubulreceivable(Revenuegrantsreceivable)is as follows:
Parculars March 2023 March 2022
Opening Balance 8.89 1.93
Add: Addions - 6.96
Less: Ulisaons/ Reversals - -
Closing Balance 8.89 8.89
3. Movementin Allowancefor doubulreceivable(others) isas follows:
Parculars March 2023 March 2022
Opening Balance 20.51 20.52
Add: Addions 7.04 -
Add: Reclassicaon 9.00 -
Less: Ulisaons/ Reversals - 0.01
Closing Balance 36.55 20.51
4. Movementin Allowancefor doubulreceivable(Receivablefrom governmentauthories) is as follows:
Parculars March 2023 March 2022
Opening Balance 3.90 -
Add: Transfer - 3.90
Less: Ulisaons/ Reversals - -
Closing Balance 3.90 3.90
5. Movementin Allowancefor doubulsecurity deposits is as follows:
Parculars March 2023 March 2022
Opening Balance - -
Add: Addion 0.07 -
Less: Ulisaons/ Reversals - -
Closing Balance 0.07 -
AnnualReport 2022-23 139
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.13 OTHER CURRENT ASSETS
(Unsecured, considered good unless otherwise stated)
a) Supplier advances
Considered good
RelatedPares(ReferNote3.8) - 5.16
Others 27.25 35.54
Considereddoubul 0.97 0.97
28.22 41.67
Less: Allowancefordoubul advances 0.97 0.97
27.25 40.70
b) Balances with GovernmentAuthories - Goodsand Services,customs, porttrust,
centralexcise etc. 827.32 776.77
c) Others* 86.42 113.90
940.99 931.37
* Includes:
-Prepaid expenses 85.42 111.73
Note:
Movementin Allowancefordoubul advancesis as follows:
Parculars March 2023 March 2022
Opening 0.97 0.64
Add: Addions - 0.65
Less: Ulisaons/ Reversals - 0.32
Closing 0.97 0.97
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.14 EQUITY SHARE CAPITAL
Authorised
27,85,60,00,000 (March 2022: 27,85,60,00,000) Equity shares of ` 1 each 2,785.60 2,785.60
2,785.60 2,785.60
Issued
a) 2,28,98,12,796 (March 2022: 2,28,92,12,796) Equity shares of ` 1 each 228.98 228.92
b) 64,63,14,480 (March 2022: 64,63,14,480) Equity shares of ` 1 each issued through
Global Depository Receipts 64.63 64.63
293.61 293.55
Subscribed and fully paid up
a) 2,28,98,12,796 (March 2022: 2,28,92,12,796) Equity shares of ` 1 each 228.98 228.92
b) 64,63,14,480 (March 2022: 64,63,14,480) Equity shares of ` 1 each issued through
Global Depository Receipts 64.63 64.63
293.61 293.55
Add: Forfeited shares (amount originally paid up in respect of 760 shares) # 0.00 0.00
293.61 293.55
#amount is below roundingo norms adoptedby the Company.
140 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Shares held by promoters as at March 31, 2023
S.
No
Name of the Promoter No. of Shares %of total shares % Change during
the year
1 Hinduja AutomoveLimited (including sharesheld throughGDRs
throughCibank N A, NewYork)
1,34,86,28,818 45.93 0.01
2 Hinduja Bank (Switzerland) Ltd (held on behalf of Hinduja Automove
Limited)
14,49,04,064 4.94 -
3 Hinduja Foundries Holdings Limited 71,27,379 0.24 -
Total 1,50,06,60,261 51.11 0.01
Shares held by promoters as at March 31, 2022
S.
No
Name of the Promoter No. of Shares %of total shares % Change during
the year
1 HindujaAutomoveLimited(includingsharesheldthroughGDRsthrough
CibankN A, New York)
1,34,86,28,818 45.94 -
2 Hinduja Bank (Switzerland) Ltd (held on behalf of Hinduja Automove
Limited)
14,49,04,064 4.94 -
3 Hinduja Foundries Holdings Limited 71,27,379 0.24 -
Total 1,50,06,60,261 51.12 -
Notes:
1. Reconciliaon of number of equity shares subscribed
Parculars March 2023 March 2022
Balance as at the beginning of the year 2,93,55,27,276 2,93,55,27,276
Add: Issued during the year (Refer Note 3.4) 6,00,000 -
Balance as at end of the year 2,93,61,27,276 2,93,55,27,276
2. Shares issued in preceding 5 years for consideraon other than cash
HindujaFoundriesLimited(amalgamangcompany)mergedwiththeCompanyeecve October1,2016pursuanttothe order
received from Naonal Company Law Tribunal on April 24, 2017. Consequently, 80,658,292 equity shares of ` 1 each of the
Companyhas been alloedon June 13, 2017as fully paid up tothe shareholdersof the amalgamangcompany.
3. As on March 31, 2023, there are 35,29,18,140 (March 2022: 35,31,58,140) equity shares represenng the outstanding Global
DepositoryReceipts (GDRs).The balance GDRs havebeen convertedintoequity shares.
4. Shares held by the Holding Company
Hinduja Automove Limited, the holding company, holds 1,16,43,32,742 (March 2022: 1,16,43,32,742) Equity shares and
54,86,669 (March 2022: 54,86,669) Global Depository Receipts (GDRs) equivalent to 32,92,00,140 (March 2022: 32,92,00,140)
Equity shares of ` 1 (March 2022: ` 1) each aggregangto50.87% (March2022: 50.88%) of the totalsharecapital.
5. Shareholders other than the Holding Company holding more than 5% of the equity share capital
Thereare noshareholdersholding more than 5% ofthe equity share capitalof the Companyother than theHolding Company
as at March 31, 2023 and March 31, 2022.
6. Rights, preferences and restricons in respect of equity shares and GDRs issued by the Company
a) TheEquity shareholdersare entled to receivedividends as and when declared; a right to vote in proporon to holding
etc. and their rights, preferences and restricons are governed by / in terms of their issue under the provisions of the
Companies Act, 2013.
b) The rights, preferences and restricons of the GDR holders are governed by the terms of their issue, and the provisions
of the Companies Act, 2013. Each GDR holder is entled to receive 60 equity shares [March 2022: 60 equity shares] of
`1 each, per GDR, andtheir vong rightscan be exercised throughthe Depository.
7. TheCompanyalloed6,00,000(March2022:Nil)equitysharespursuanttotheexerciseofoponsunderEmployeeStockOpon
Plan Scheme. For Informaon relang to Employees Stock Opon Plan Scheme including details of opons outstanding as at
March31, 2023 -ReferNote3.4.
AnnualReport 2022-23 141
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
Note ` Crores ` Crores
1.15 OTHER EQUITY
Capital Reserve A 263.87 263.87
SecuriesPremium B 1,913.70 1,908.75
CapitalRedemponReserve C 3.33 3.33
ShareOpons OutstandingAccount D 37.87 37.90
General Reserve E 1,020.55 1,020.55
Cash Flow Hedge Reserve F 17.73 10.01
Retained Earnings G 4,875.14 3,798.94
8,132.19 7,043.35
Refer "Statementof Changes in Equity"foraddions / deleons ineach reserve.
Notes:
A. Capital reserverepresentsreservecreatedpursuantto the business combinaons.
B. Securiespremiumrepresentspremiumreceivedonequitysharesissued,whichcanbeulisedonlyinaccordancewiththeprovisions
ofthe Companies Act, 2013 (theAct) forspecied purposes.
C. Capitalredemponreserve representthereserve arising pursuanttothe business combinaonduring 2016-17.
D. Share opons outstanding accountrelates tostock opons grantedby the Company to employeesunder an employee stock opons
plan. (Refer Note 3.4)
E. General reserve is createdfrom me to me by transferring prots from retainedearnings and can be ulised for purposes such as
dividend payout, bonus issue, etc.
F. Cash ow hedge reserve represents the cumulave eecve poron of gains or losses arising on changes in fair value of hedging
instrumentsenteredintoforcashowhedges.Thecumulavegainorlossarisingonchangesinfairvalueofthehedginginstruments
that are recognised and accumulated in this reserve are reclassied to prot or loss only when the hedged transacon aects the
protor loss.
G. In respect of the year ended March 31, 2023, the Board of Directors has declared a dividend of ` 2.60 per equity share (March 2022:
` 1.00 per equity share) subject to approval by shareholders at the ensuing Annual General Meeng aer which dividend will be
accountedand paid out of the retained earnings available for distribuon in accordance with the provisions of the Act. Revaluaon
reserveamounng to` 1,210.21 crorestransferredto retainedearnings on transiondatemaynot be availablefordistribuon.
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.16 NON-CURRENT FINANCIAL LIABILITIES - BORROWINGS
a) Secured borrowings
i. Term loanfrom banks 1,083.75 1,300.00
ii. SIPCOT so loan 31.18 31.18
iii. Non-converbledebentures 199.03 795.88
b) Unsecured borrowings
i. Externalcommercialborrowings frombanks 385.86 657.14
ii. Interestfreesales taxloans 66.41 66.41
1,766.23 2,850.61
Notes:
1. These arecarried atamorsed cost.
2. Refer Note 1.21for currentmaturiesof non-currentborrowings.
3. Refer Note 3.11 for security and terms of the borrowing.
4. The Companyhas beenauthorised to issue36,500,000 (March2022: 36,500,000) Non-CumulaveRedeemableNon-ConverblePreference
Shares of ` 10 each valuing ` 36.50 crores (March 2022: ` 36.50 crores) and 77,000,000 (March 2022: 77,000,000) Non-Converble
Redeemable Preference Shares of ` 100 each valuing ` 770.00 crores (March 2022: ` 770.00 crores). No preference shares has been issued
during the year.
5. Refer Note 3.6 for details on debt covenants.
6. The Company has not obtained any freshterm loans during the year. Forthe previousyear the borrowings were ulizedfor the purposes
asmenoned in the respecveagreements.
7. The Companyis not declaredas a wilful defaulter by anybank or nancial instuonor governmentor anygovernmentauthority.
142 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.17 NON-CURRENT - OTHER FINANCIAL LIABILITIES
a) Derivavesdesignated inhedging relaonshipscarried atfair value - 5.05
b) Capital creditors 0.99 3.71
c) Others(includes security deposit payable,etc) 22.02 20.65
23.01 29.41
Note:
These (except derivaves) are carried at amorsed cost. Derivaves are carried at fair value through prot or loss / other comprehensive
income.
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.18 NON-CURRENT CONTRACT LIABILITIES
Income received in advance (Refer Note 3.7) 250.04 190.58
250.04 190.58
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.19 NON-CURRENT PROVISIONS
a) Provision foremployeebenets
i. Compensated absences 103.83 98.77
ii. Othersincluding post rerementbenets 62.48 7.29
b) Others
i. Productwarranes 348.14 90.11
ii. Others(including ligaonmaers) 4.77 4.04
519.22 200.21
Notes:
1. Movementin Provisionforproduct warranesis as follows:
Parculars March 2023 March 2022
Opening (Current(Refer Note 1.25) andNon-current) 320.60 260.80
Add: Provided during the year (includes unwinding of discount) 643.79 192.12
Less: Ulisaons(net) 312.07 132.32
Closing (Current(ReferNote 1.25) andNon-current) 652.32 320.60
This provision is recognised once the products are sold. The esmated provision takes into account historical informaon, frequency and
averagecostofwarrantyclaimsandtheesmateregardingpossiblefutureincidenceofclaims.Theprovisionforwarrantyclaimsrepresents
the present valueof management's bestesmate of the future economic benets. The outstandingprovision for product warranes as at
the reporng dateis for the balance unexpired period of the respecvewarraneson the variousproducts which ranges upto 72 months
(March 31 2022: upto 24 months).
2. Movementin Provisionforothers (including ligaonmaers)is as follows:
Parculars March 2023 March 2022
Opening 4.04 8.26
Add: Addions 0.73 26.84
Less: Transfer / Reversal - 31.06
Closing 4.77 4.04
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.20 DEFERRED TAX LIABILITIES (NET)
a) Deferredtaxliabilies 922.48 962.53
b) Deferredtax (assets) (418.97) (818.17)
503.51 144.36
Notes:
1. Refer Note 3.1for detailsof deferred taxliabilies and assets.
2. Deferredtaxassetsincludes Unused taxcredits (MAT credit entlement)of ` 174.57 crores (March 2022: ` 584.85 crores).
AnnualReport 2022-23 143
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.21 CURRENT FINANCIAL LIABILITIES - BORROWINGS
Secured borrowings
Bills discounted 13.06 -
Unsecured borrowings
Short term loans from banks 150.00 150.00
Bills discounted 105.57 116.83
Currentmaturiesof long-term debts 1,145.24 389.66
1,413.87 656.49
Notes:
1. These arecarried atamorsed cost.
2. Refer Note 3.12 for security and terms of the borrowings.
3. Commercialpaper - maximum balanceoutstanding duringthe year is` 1,000 crores (March 2022: ` 1,250 crores).
4. Refer Note 3.6 for details of debt covenants.
5. The Companyhas ulised the borrowingsforthe purpose forwhich it isobtained as menonedin the agreements.
6. Currentmaturies of longterm debts:
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
Secured 815.60 137.50
Unsecured 329.64 252.16
7. Net debtreconciliaon:
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
Cash and cash equivalents 454.11 994.25
Liquid investments 2,771.42 1,298.05
Current borrowings (269.65) (267.37)
Non-currentborrowings (2,961.17) (3,290.15)
DerivaveAsset / (Liability) 97.41 33.92
Lease Liability (44.73) (46.78)
Net debt 47.39 (1,278.08)
Other assets Liabilies from nancing acvies Total
Cash
and cash
equivalents
Liquid
investments
Non-
current
borrowings
Current
borrowings
Derivave
Asset /
(Liability)
Lease
Liabilies
Net debt as at March 31, 2021 530.13 - (2,617.72) (1,162.17) (8.95) (30.06) (3,288.77)
Cash ows(net) 464.26 1,283.82 (637.50) 894.27 - 15.32 2,020.17
Foreignexchangeadjustments(Realised / Unrealised) (0.14) - (31.23) 1.51 - - (29.86)
Prot/ (loss) onsale of liquid investments(net) - 13.31 - - - - 13.31
Interestexpense - - (196.93) (83.29) - (3.17) (283.39)
Interest paid - - 193.23 82.31 - - 275.54
Other non-cashmovements
- Fair value adjustments - 0.92 - - 42.87 - 43.79
- Addion/ Deleon (Net) relangtolease
liability
- - - - - (28.87) (28.87)
Net debt as at March 31, 2022 994.25 1,298.05 (3,290.15) (267.37) 33.92 (46.78) (1,278.08)
Cash ows(net) (538.69) 1,439.64 375.94 (1.76) - 17.66 1,292.79
Foreignexchangeadjustments(Realised / Unrealised) (1.45) - (44.15) (0.04) - - (45.64)
Prot/ (loss) onsale of liquid investments(net) - 30.05 - - - - 30.05
Interestexpense - - (229.21) (33.87) - (3.72) (266.80)
Interest paid - - 226.40 33.39 - - 259.79
Other non-cashmovements
- Fair value adjustments - 3.68 - - 63.49 - 67.17
- Addion/Deleon(Net)relangtoleaseliability - - - - - (11.89) (11.89)
Net debt as at March 31, 2023 454.11 2,771.42 (2,961.17) (269.65) 97.41 (44.73) 47.39
Note:
Non-currentborrowingsand interestexpenseis grossof impact on accountof eecveinterestratechanges.
144 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.22 CURRENT FINANCIAL LIABILITIES - TRADE PAYABLES
Tradepayables- including acceptances
a) Totaloutstandingdues of micro enterprisesand smallenterprises [Refer Note3.14] 73.75 59.84
b) Total outstandingdues of creditors other than microenterprises andsmall enterprises 7,101.37 6,815.39
7,175.12 6,875.23
Trade Payables ageing schedule ` Crores
As at March 31, 2023
Outstanding for following periods from due date of payment
Parculars Un-billed
(includes accrued
expenses /
liabilies)
Not due Less than
1 year
1-2 years 2-3 years More
than 3
years
Total
(i) Undisputeddues - Microand Small Enterprises 0.97 72.46 0.32 - - - 73.75
(ii) Undisputeddues - Others 912.71 5,604.13 581.02 2.04 1.21 0.26 7,101.37
(iii) Disputed dues- Micro andSmall Enterprises - - - - - - -
(iv) Disputed dues -Others - - - - - - -
Total 913.68 5,676.59 581.34 2.04 1.21 0.26 7,175.12
As at March 31, 2022
Outstanding for following periods from due date of payment
Parculars Un-billed
(includes accrued
expenses /
liabilies)
Not due Less than
1 year
1-2 years 2-3 years More
than 3
years
Total
(i) Undisputeddues - Microand Small Enterprises 3.69 52.90 3.21 - 0.04 - 59.84
(ii) Undisputeddues - Others 936.00 5,629.55 224.31 9.24 11.38 4.91 6,815.39
(iii) Disputed dues- Micro andSmall Enterprises - - - - - - -
(iv) Disputed dues -Others - - - - - - -
Total 939.69 5,682.45 227.52 9.24 11.42 4.91 6,875.23
Notes:
1. These are carriedat amorsedcost.
2. Includes acceptances amounngto ` 269.73 crores (March 2022: ` 673.21 crores).
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.23 CURRENT - OTHER FINANCIAL LIABILITIES
a) Interest accrued but not due on borrowings 48.72 45.43
b) Unclaimed dividends 10.30 10.51
c) Employeebenets 401.10 183.13
d) Capital creditors
i) Total outstandingdues of microenterprisesand small enterprises[ReferNote 3.14] 6.17 8.06
ii) Totaloutstandingduesofcreditorsotherthanmicroenterprisesandsmallenterprises 61.82 147.16
e) Derivavesdesignatedin hedging relaonshipscarriedat fairvalue 1.43 6.86
f) Others* 409.94 298.58
939.48 699.73
*Includes:
-Refund liabilies 361.66 261.39
Notes:
1. Refer Note 3.11 for security and terms of the borrowings.
2. These (except derivaves) are carried at amorsed cost. Derivaves are carried at fair value through prot or loss / other comprehensive
income.
3. Refer Note 3.6 for details of debt covenants.
AnnualReport 2022-23 145
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.24 CURRENT CONTRACT LIABILITIES
a) Income received in advance 256.50 292.94
b) Advance from customers 106.33 123.26
362.83 416.20
Note:
Refer Note3.7 fordisclosures relangto revenuefromcontractswith customers.
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.25 CURRENT PROVISIONS
a) Provision foremployeebenets
i. Compensated absences 22.03 23.22
ii. Othersincluding post rerementbenets 84.34 82.22
b) Others
i. Productwarranes 304.18 230.49
iii. Others (including ligaonmaers) 108.77 134.32
519.32 470.25
Notes:
1. Formovement inProvision forproductwarranesRefer Note 1.19.
2. Movementin Provisionforobligaons (Optareplc) is as follows:
Parculars March 2023 March 2022
Opening - 33.26
Add: Addions - -
Less: Reversal (Refer Note 2.8) - 33.26
Closing - -
3. Movementin Provisionforothers (including ligaonmaers)is as follows:
Parculars March 2023 March 2022
Opening 134.32 133.42
Add: Addions /Transfer 4.99 3.64
Less: Ulisaons/ Reversal 30.54 2.74
Closing 108.77 134.32
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
1.26 OTHER CURRENT LIABILITIES
a) Statutoryliabilies 506.21 275.51
b) Accrued gratuity (Refer Note 3.2) 7.70 6.12
c) Others 0.22 0.15
514.13 281.78
146 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
2.1 REVENUE FROM OPERATIONS
a) Sale of products
- Commercialvehicles 31,646.05 18,003.09
- Engines andgensets 633.84 514.64
- Ferrouscasngsand paerns 609.33 469.02
- Spareparts and others 2,577.88 2,033.47
(A) 35,467.10 21,020.22
b) Sale of services (B) 1,106.88 855.41
c) Other operangrevenues
- Grantincome 0.44 -
- Export incenves 47.10 40.16
- Scrapsales 108.56 72.40
- Others 11.11 7.98
(C) 167.21 120.54
(A+B+C) 36,741.19 21,996.17
Less: Rebates and discounts 597.05 307.88
36,144.14 21,688.29
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
2.2 OTHER INCOME
a) Interestincome fromnancial assetsmeasured atamorsed cost
i. Loansto relatedpares 12.72 0.06
(Refer Note 3.8)
ii. Others 26.88 21.85
39.60 21.91
b) Dividend incomefrom associates- Non-currentinvestments(Refer Note3.8) 0.82 0.07
c) Proton sale of investments- net Currentinvestments 30.05 13.31
d) Other non-operangincome
i. Proton saleof Property,Plant and Equipment(net) 8.97 3.02
ii. Netgain/ (loss) arising onnancial asset mandatorilymeasured atFVTPL 10.02 2.36
iii. Others 26.68 35.46
45.67 40.84
116.14 76.13
AnnualReport 2022-23 147
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
2.3 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
Changes in inventories
- Finishedgoods and stock-in-trade (540.81) (75.19)
- Work-in-progress (17.68) 26.20
Net change (558.49) (48.99)
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
2.4 EMPLOYEE BENEFITS EXPENSE
a) Salaries and wages 1,821.75 1,434.32
b) Contribuon toprovidentand other funds 112.61 105.17
c) Sharebased paymentscosts* (0.03) (2.09)
d) Stawelfareexpenses 201.40 170.21
2,135.73 1,707.61
Less:Expenses capitalised 21.87 13.01
2,113.86 1,694.60
*For shareopons given bythe Companyto employeesunder employeestock oponplan (ReferNote 3.4).
Note:
Employeebenets expenseinclude:
- CSRExpenditure (Refer Note3.15) 0.47 0.64
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
2.5 FINANCE COSTS
Interestexpense(including impact of unwinding of discountrate) 288.06 300.27
Less:Expenses capitalised 2.69 2.33
285.37 297.94
Interest on lease liability 3.72 3.17
289.09 301.11
Note:
The capitalisaonrateused to determinethe amount of borrowing coststo be capitalised is the weightedaverage interestrateapplicable
tothe Company'sgeneralborrowings duringthe year -7.67% p.a (March 31,2022 - 8.36% p.a).
148 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
2.6 DEPRECIATION AND AMORTISATION EXPENSE
A) Property, plant and equipment
(i) Buildings 76.63 72.60
(ii) Plant and equipment 449.15 450.80
(iii) Furnitureandngs 4.78 4.96
(iv) Vehiclesincluding electricvehicles 2.35 16.20
(v) Oce equipment 18.69 20.62
(vi) Assets given on lease
- Buildings 0.29 0.29
- Plantand equipment # #
- Aircra 9.74 9.74
561.63 575.21
B) Other intangible assets
(i) Computersoware
- Developed 3.27 15.44
- Acquired 11.07 14.17
(ii) Technical knowhow
- Developed 130.63 123.74
- Acquired 8.10 8.10
153.07 161.45
C) Depreciaon of Right-of-use asset 17.26 16.10
731.96 752.76
#amount is below roundingo norms adoptedby the Company.
Note:
Also Refer Notes 1.1, 1.2 and 1.1A.
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
2.7 OTHER EXPENSES
(a) Consumpon of stores and tools 106.36 68.04
(b) Power and fuel 253.91 179.53
(c) Rent (Refer Note 3.5) 4.92 7.25
(d) Repairs and maintenance
- Buildings 56.44 44.80
- Plantand machinery 177.37 157.71
(e) Insurance 28.07 30.63
(f) Rates and taxes,excludingtaxeson income 8.60 12.92
(g) Researchand development(includes materialsconsumed and tesngcharges) 135.60 134.51
(h) Service andproduct warranes 766.80 388.73
(i) Packing and forwarding charges 795.19 545.44
(j) Selling andadministraonexpenses -net (includes hirecharges,travelexpenditure,
adversementexpenditure,consultancycharges,etc (Refer Note3.13))
768.28 530.14
(k) Annual maintenance contracts 246.39 216.04
(l) Impairmentloss allowance /write o on tradereceivable(net) 1.66 (12.03)
(m) Impairment lossallowance / writeo on other receivable(net) 8.16 6.65
3,357.75 2,310.36
Less:Expenses capitalised 107.32 72.26
3,250.43 2,238.10
Note:
Sellingand administraonexpensesinclude:
-Directors'sing fees 1.06 1.23
-Commission to Non Whole-meDirectors 4.92 3.00
-CSR Expenditure (Refer Note3.15) 15.54 16.70
AnnualReport 2022-23 149
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
2.8 EXCEPTIONAL ITEMS
a) Impairment (Loss) / reversal in the valueof investments
- OptarePlc (Refer Note3.25) - 781.19
- Gulf AshleyMotor Limited (12.34) -
- AshleyAviaonLimited (16.42) (4.00)
- Albonair (India)PrivateLimited 12.34 -
- Albonair GmbH(ReferNote1.3) - (239.36)
b) Reversal of provisionfor obligaonin relaontoOptarePlc (ReferNote 3.25) - 33.26
c) Gain / (Loss) onfair valuaonof Investmentin Hinduja EnergyIndia Limited
(Refer Note 1.3 and 3.6) 65.67 (107.13)
d) Reversal of provisionrelang tosale of long terminvestments - 1.17
e) Obligaonrelangto disconnuedproductsof LCV division (netof reversal) 14.90 (3.67)
f) Voluntary rerementscheme (4.98) (28.75)
g) Prot(net) inrelaon toEV and relatedinterestand expenses(ReferNote1.12) 25.44 104.96
h) Provisionrelang toEMAAS business classied as assetsheld forsale
(Refer Notes 1.5A and 1.5B) - (26.84)
84.61 510.83
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
3.1 INCOME TAXES RELATING TO CONTINUING OPERATIONS
3.1.1 Income tax recognised in prot or loss
Current tax
In respect of the current year 780.00 10.11
(A) 780.00 10.11
Deferred tax
In respect of the current year (49.71) (24.33)
(B) (49.71) (24.33)
Total income tax expense recognised in prot or loss (A + B) 730.29 (14.22)
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
3.1.2 Income tax expense for the year reconciled to the accounng prot:
Prot before tax 2,110.40 527.61
Incometaxrate 34.944% 34.944%
Incometaxexpense 737.46 184.37
Eect of incomethat is taxed atlower rate 0.04 -
Eect of previouslyunrecognisedand unused taxlosses and deducble temporarydierences (10.50) (38.22)
Eect of concessionsand other allowances 20.45 (29.25)
Eect of exceponal items, disallowancesand reversals (net) (17.21) (131.16)
Eect of dierent taxratesof branchesoperangin overseasjurisdicons 0.05 0.04
Income tax expense recognised in prot or loss 730.29 (14.22)
150 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.1 INCOME TAXES RELATING TO CONTINUING OPERATIONS (Contd.)
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
3.1.3 Income tax recognised in other comprehensive income
Deferred tax
Arisingon income and expensesrecognisedin other comprehensiveincome:
Fairvalueremeasurementof hedging instrumentsenteredintoforcash owhedges 9.54 5.39
Remeasurementof dened benetobligaon (5.57) (14.33)
A 3.97 (8.94)
Arisingon income and expensesreclassied fromequity toprot orloss:
Relangtocash ow hedges (5.39) 6.84
B (5.39) 6.84
Total income tax recognised in other comprehensive income (A+B) (1.42) (2.10)
3.1.4 Analysis of deferred tax assets / liabilies: ` Crores
March 31, 2023 Opening
balance
Recognised in
prot or loss
Recognised
in other
comprehensive
income
Unused tax
credits -
(ulised)
Closing
balance
Deferred tax (liabilies) / assets in relaon to:
Property, Plant& Equipmentand intangibleassets (950.16) 39.16 - - (911.00)
Right-of-useasset (6.98) 5.04 - - (1.94)
Lease Liability 6.46 (3.38) - - 3.08
Voluntary rerement scheme compensaon 28.11 (8.66) - - 19.45
Expenditureallowed uponpayments 100.52 9.78 5.57 - 115.87
Unusedtax credit(MAT creditentlement) 584.85 - - (410.28) 174.57
Cashow hedges (5.39) - (4.15) - (9.54)
Othertemporarydierences 98.23 7.77 - - 106.00
(144.36) 49.71 1.42 (410.28) (503.51)
March 31, 2022 Opening
balance
Recognised in
prot or loss
Recognised
in other
comprehensive
income
Unused tax
credits -
(ulised)
Closing
balance
Deferred tax (liabilies) / assets in relaon to:
Property, Plant& Equipmentand intangibleassets (1,040.84) 90.68 - - (950.16)
Right-of-useasset (10.97) 3.99 - - (6.98)
Lease Liability 10.70 (4.24) - - 6.46
Voluntary rerement scheme compensaon 27.86 0.25 - - 28.11
Expenditureallowed uponpayments 90.20 (4.01) 14.33 - 100.52
Unusedtax credit(MAT creditentlement) 574.78 10.07 - - 584.85
Cashow hedges 6.84 - (12.23) - (5.39)
Othertemporarydierences 80.31 17.92 - - 98.23
Unusedtax losses /unabsorbed depreciaon 90.33 (90.33) - - -
(170.79) 24.33 2.10 - (144.36)
Deferredtax assets and liabilies are recognisedfor the future tax consequences of temporary dierences between the carrying values of
assetsand liabilies and their respecve taxbases, unused taxcredits. Deferred taxassets arerecognised tothe extentthat it is probable
that future taxableincome will be available against which the deducble temporary dierences,unused tax losses and unused tax credits
couldbe ulised.
AnnualReport 2022-23 151
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.1 INCOME TAXES RELATING TO CONTINUING OPERATIONS (Contd.)
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
3.1.5 Unrecognised deducble temporary dierences, unused tax losses and unused tax credits
-Unused taxlosses (capital) 41.91 71.39
41.91 71.39
Notes:
1 These will expirein variousyearsupto 2026-27.
2 The above aregrossamounts on which appropriate taxrateswould apply.
3.2 Rerement benet plans
3.2.1 Dened contribuon plans
Paymentstodenedcontribuonplansi.e., Company’scontribuontosuperannuaonfund,employeestate insuranceandotherfundsare
determinedundertherelevantschemesand/ orstatuteandchargedtotheStatementofProtandLossin theperiodofincurrencewhen
the services are rendered by the employees.
The total expense recognised in prot or loss of ` 28.40 crores (2021-22: ` 25.6 crores) represents contribuon paid/ payable to these
schemesby the Companyat rates specied in the schemes.
3.2.2 Dened benet plans
The Company has an obligaon towards gratuity as per payment of gratuity act, 1972, a dened benet rerement plan covering eligible
employees.Theplanprovidesforalump-sumpaymenttovestedemployeesatthemeofrerement,separaon,deathwhileinemployment
or on terminaon of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesng occurs
upon compleon of ve years of service. The Company accounts for the liability for gratuity benets payable in the future based on an
actuarialvaluaon.TheCompanymakesannualcontribuonsthroughtruststoafundedgratuityschemeadministeredbytheLifeInsurance
CorporaonofIndia.
Eligible employees of the Company are entled to receive benets in respect of provident fund, a dened benet plan, in which both
employeesandtheCompanymakemonthlycontribuonsataspecied percentageofthecoveredemployees’salary.Thecontribuonsare
madetotheprovidentfundandpensionfundsetupasirrevocabletrustsbytheCompany.Theinterestratesdeclaredandcreditedbytrusts
tothe membershavebeen higher than / equalto the statutory rateof interestdeclared by theCentralGovernment.
Company’sliabilitytowardsgratuity(funded),providentfund,otherrerementbenetsandcompensatedabsencesareactuariallydetermined
atthe end of eachreporng period using theprojectedunit credit methodas applicable.
Theseplans typically exposethe Companyto actuarial riskssuch as: investmentrisk, interestrate risk, longevityrisk and salary risk.
Investment risk The presentvalue of thedened benetplan liability is calculatedusing a discountratedetermined byreference
to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is
belowthis rate,it willcreatea plan decit.
Interest rate risk A decrease in the bond interest rate will increase the plan liability. However, this will be parally oset by an
increase in the return on the plan’s debt investments.
Longevity risk The present value of the dened benet plan liability is calculated by reference to the best esmate of the
mortality of plan parcipants both during and aer their employment. An increase in the life expectancy of the
planparcipants will increasethe plan's liability.
Salary risk The present value of the dened benet plan liability is calculated by reference to the future salaries of plan
parcipants.As such, an increasein the salary of theplan parcipants will increasethe plan’s liability.
152 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.2 Rerement benet plans (connued)
As at
March 31, 2023
As at
March 31, 2022
3.2.3 The principal assumpons used for the purposes of the actuarial valuaons were as follows:
Gratuity
Discount rate 7.18% 7.18%
Expectedrateof salary increase 5.50% 5.50%
Average past service 17.50 16.80
Average Longevityat rerementage - futureservice 10.70 11.20
Arionrate 3.00% 3.00%
Compensated absences
Discount rate 7.18% 7.18%
Expectedrateof salary increase 5.50% 5.50%
Arionrate 3.00% 3.00%
Other dened benet plans
Discount rate 7.18% 7.18%
The esmates of future salary increases, considered in actuarial valuaon, takes into account inaon, seniority, promoon and other
relevant factors, such as supply and demand in the employment market.
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
3.2.4 Amounts recognised in total comprehensive income in respect of these dened benet plans
are as follows:
Gratuity
Current service cost 20.52 19.74
Netinterestexpense/ (income) (0.43) (1.95)
Components of dened benet costs recognised in prot or loss 20.09 17.79
Remeasurementon the netdened benet liability comprising:
Actuarial(gain)/ loss arisingfrom changesin nancial assumpons - (10.34)
Actuarial(gain)/ loss arisingfrom experienceadjustments 7.89 53.50
Actuarial(gain)/ loss onplan assets (2.08) (2.16)
Components of dened benet costs recognised in other comprehensive income 5.81 41.00
Total 25.90 58.79
Compensated absences and other dened benet plans
Current service cost 17.05 18.66
Netinterestexpense 9.10 8.40
Actuarial(gain)/ loss arisingfrom changesin nancial assumpons 0.18 (3.46)
Actuarial(gain)/ loss arisingfrom experienceadjustments (15.67) (12.18)
Components of dened benet costs recognised in prot or loss 10.66 11.42
The current service cost and the net interest expense for the year are included in "contribuon to provident and other funds" and
"Salariesand wages" underemployee benetsexpense inprot or loss(ReferNote2.4).
AnnualReport 2022-23 153
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.2 Rerement benet plans (connued)
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
3.2.5 The amount included in the balance sheet arising from the Company's obligaon in respect of
its dened benet plans is as follows:
Gratuity
Presentvalueof dened benetobligaon 433.44 409.16
Fair value of plan assets 425.74 403.04
Net liability / (asset) arising from dened benet obligaon (funded) 7.70 6.12
Compensated absences and other dened benet plans
Presentvalueof dened benetobligaon 133.81 130.09
Fair value of plan assets - -
Net liability arising from dened benet obligaon (unfunded) 133.81 130.09
Gratuityisreectedin other currentasset incase of Netasset and reectedin "Accruedgratuity"under other currentliabilies in caseof
Netliabilityandcompensatedabsencesisreectedin "Provisionfor employeebenets"underprovisions.[ReferNotes1.19,1.25and1.26].
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
3.2.6 Movements in the present value of the dened benet obligaon were as follows:
Gratuity
Openingdened benet obligaon 409.16 365.12
Current service cost 20.52 19.74
Interest cost 28.22 23.46
Actuarial(gain)/lossarising fromchanges in nancial assumpons - (10.34)
Actuarial(gain)/lossarising fromexperience adjustments 7.89 53.50
Benetspaid (32.35) (42.32)
Closing dened benet obligaon 433.44 409.16
Compensated absences and other dened benet plans
Openingdened benet obligaon 130.09 127.39
Current service cost 17.05 18.66
Interest cost 9.10 8.40
Actuarial(gain)/lossarising fromchanges in nancial assumpons 0.18 (3.46)
Actuarial(gain)/lossarising fromexperience adjustments (15.67) (12.18)
Benetspaid (6.94) (8.72)
Closing dened benet obligaon 133.81 130.09
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
3.2.7 Movements in the fair value of the plan assets were as follows:
Gratuity
Openingfair valueof plan assets 403.04 383.69
Interest on plan assets 28.65 25.41
Remeasurements due to Actual return on plan assets less interest on plan assets 2.08 2.16
Contribuons 24.32 34.10
Benetspaid (32.35) (42.32)
Closing fair value of plan assets 425.74 403.04
TheCompanyfundsthe costofthegratuityexpectedtobeearnedon ayearlybasis toLifeInsuranceCorporaon ofIndia, whichmanages
the plan assets.
Theactual return onplan assets was` 30.73 crores(2021-22: ` 27.57 crores).
154 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.2 Rerement benet plans (connued)
3.2.8 Signicant actuarial assumpons for the determinaon of the dened obligaon are discount rate and expected salary increase. The
sensivity analysis below has been determined based on reasonably possible changes of the respecve assumpon occurring at the end
of the reporng period.
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
Gratuity
Ifthe discount rate is 50 basis pointshigher / lower, thedened benet obligaonwould:
decrease by 13.77 13.67
increase by 14.56 14.48
If the expected salary increases / decreases by 50 basis points, the dened benet obligaon
would:
increase by 15.03 14.93
decrease by 14.33 14.22
Compensated absences
Ifthe discount rate is 50 basis pointshigher / lower, thedened benet obligaonwould:
decrease by 4.71 4.36
increase by 5.02 4.66
If the expected salary increases / decreases by 50 basis points, the dened benet obligaon
would:
increase by 4.82 4.69
decrease by 4.55 4.43
The sensivity analysispresentedabove may not be representaveof the actual change in the dened benet obligaon,since the above
analysis are based on change in an assumpon while holding other assumpons constant. In pracce, it is unlikely that the change in
assumponswould occur in isolaonof one another assome of the assumpons maybe correlated.
Furthermore, in presenng the above sensivity analysis, the present value of the dened benet obligaon has been calculated using
the projectedunit credit method atthe end of each reporngperiod, which is the same as thatapplied in calculangthe dened benet
obligaonliability recognisedin thebalance sheet.
Therewas nochange in the methodsand assumpons used in preparingthe sensivity analysisfrom previousyear.
TheCompanyexpectstomakeacontribuonof` 35.00 crores (March 2022: `36.00crores)tothedenedbenetplans(gratuity-funded)
duringthe next nancial year.
Theaverageduraonof thebenet obligaon(gratuity)is 7.2 years(March2022: 7.5 years).
AnnualReport 2022-23 155
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.2 Rerement benet plans (connued)
3.2.9 Provident Fund Trust - actuarial valuaon of interest guarantee :
Ashok Leyland has an obligaon to fund any shorall on the yield of the trust's investments over the administered interest rates on an
annualbasis.Theadministeredratesaredeterminedannuallypredominantlyconsideringthesocialratherthantheeconomicfactorsandin
mostcases,theactualreturnearnedbytheCompanyhasbeenhigherinthepastyears.Theactuaryhasprovidedavaluaonforprovident
fundliabilies on the basis of guidanceissued by the Actuarial Societyof India and based onthe assumpons providedbelow.
The principal assumpons used for the purposes of the actuarial valuaons were as follows:
As at
March 31, 2023
As at
March 31, 2022
Provident Fund
Discount rate 7.18% 7.18%
Remainingtermto maturity ofporolio (years) 10.70 11.20
Expectedguaranteedinterest rate
First year 8.15% 8.10%
Thereaer 8.15% 8.10%
Arionrate 3.00% 3.00%
The amount included in the balance sheet arising from the Company's obligaon in respect of its provident fund plan is as follows:
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
Provident Fund
Presentvalueof dened benetobligaon 1,463.01 1,367.99
Fair value of plan assets 1,382.41 1,293.88
Net (liability) arising from dened benet obligaon (funded) (80.60) (74.11)
TheNet liability is reectedin"Provision foremployeebenets" under provisions.[Refer Note 1.25].
The amount recognised in total comprehensive income and the movement in fair value assets and present value obligaons pertaining to
year ended March 31, 2023 is as follows :
Amounts recognised in total comprehensive income in respect of these provident fund are as follows:
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
Provident Fund
Current service cost 51.08 47.47
Netinterestexpense 5.31 4.71
Components of provident fund recognised in prot or loss 56.39 52.18
Remeasurementon the netdened benet liability comprising:
Actuarial(gain)/ loss arisingfrom changesin nancial assumpons - (0.69)
Actuarial(gain)/ loss arisingfrom experienceadjustments 10.73 (1.98)
Actuarial(gain)/ loss onplan assets (0.61) 2.67
Components of provident fund recognised in other comprehensive income 10.12 -
Total 66.51 52.18
Thecurrentservicecostandthenetinterestexpensefortheyearareincludedin"contribuontoprovidentandotherfunds" and"Salaries
andwages" under employeebenetsexpense in protor loss (Refer Note2.4).
156 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.2 Rerement benet plans (connued)
Movements in the present value of the dened benet obligaon were as follows:
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
Openingdened benet obligaon 1,367.99 1,310.79
Adjustmentrelangto openingpresent valueobligaon (0.07) 0.21
EmployerContribuon 46.31 42.10
EmployeeContribuon 131.40 104.83
Value of InterestRateGuarantee 4.77 5.37
Interest cost 97.57 88.24
Actuarial(gain)/ loss arisingfrom changesin nancial assumpons - (0.69)
Actuarial(gain)/ loss arisingfrom experienceadjustments 10.73 (1.98)
Benetspaid (195.69) (180.88)
Closing dened benet obligaon 1,463.01 1,367.99
Movements in the fair value of the plan assets were as follows:
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
Provident Fund
Openingfair valueof plan assets 1,293.88 1,241.60
Interest on plan assets 92.26 83.53
Actuarialgain / (loss)on plan assets 0.61 (2.67)
Contribuons 191.35 152.30
Benetspaid (195.69) (180.88)
Closing fair value of plan assets 1,382.41 1,293.88
TheCompany funds thecontribuon toadministeredtrusts, which managesthe plan assetsin accordancewith providentfund norms.
The breakup of the plan assets into various categories is as follows:
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
CentralandStateGovernment Securiesincluding Public Sector Undertakingsecuries 75% 67%
Corporate Bonds 19% 25%
Mutual Funds 1% 3%
Special Deposit Scheme 5% 5%
Signicant actuarial assumpons for the determinaon of the provident fund are discount rate and interest rate guarantee. The sensivity
analysis below has been determined based on reasonably possible changes of the respecve assumpon occurring at the end of the
reporng period.
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
Ifthe discount rate is 50 basis pointshigher/lower, the denedbenet obligaonwould:
decrease by 1.22 0.93
increase by 1.26 0.97
The Company is sensive to Interest rate guarantee wherein any increase or decrease in the interest rate by 25 basis points results in an
increasein presentvalueobligaon by0.2% (March2022: 0.5%) or decreasein presentvalue obligaonby3% (March 2022:3%.)
The sensivity analysispresentedabove may not be representaveof the actual change in the dened benet obligaon,since the above
analysis are based on change in an assumpon while holding other assumpons constant. In pracce, it is unlikely that the change in
assumponswould occur in isolaonof one another assome of the assumpons maybe correlated.
AnnualReport 2022-23 157
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
3.3 Earnings per share
Basic earnings per share 4.70 1.85
Diluted earnings per share 4.70 1.84
Face value per share 1.00 1.00
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
3.3.1 Basic earnings per share
Protforthe yearaributable toequity shareholders 1,380.11 541.83
Year ended
March 31, 2023
Year ended
March 31, 2022
Nos. Nos.
Weighted average number ofequity shares used inthe calculaon ofbasic earnings per share 2,93,58,16,591 2,93,55,27,276
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
3.3.2 Diluted earnings per share
Theearnings and weightedaveragenumber of equity sharesused in the calculaonof diluted
earnings per share are as follows:
Protforthe yearaributable toequity shareholders 1,380.11 541.83
Year ended
March 31, 2023
Year ended
March 31, 2022
Nos. Nos.
Weighted average number ofequity shares used inthe calculaon ofbasic earnings per share 2,93,58,16,591 2,93,55,27,276
Adjustments :
Diluveeect- Number ofshares relangto employeestockopons 31,59,351 23,15,920
Weighted average number ofequity shares used inthe calculaon ofdiluted earnings per share 2,93,89,75,942 2,93,78,43,196
158 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.4 Share based payments
3.4.1 Details of employees stock opon plan of the Company
TheCompanyhasEmployeesStockOponsPlan(ESOP)schemegrantedtoemployeeswhichhasbeenapprovedbytheshareholdersofthe
Company. Inaccordancewith the termsof theplan, eligibleemployees maybegrantedoponsto purchaseequity sharesofthe Company
if they are in service on exercise of the grant. Each employee share opon convertsinto one equity share of the Company on exercise at
the exercise price as per the scheme. The opons carry neither rights to dividend nor vong rights. Opons can be exercised at any me
fromthe dateof vesngto thedate of theirexpiry.
Thefollowing sharebased paymentarrangementswerein existence during the currentor prior year:
Opon series Number Grant date Expiry date Exercise price
`
Fair value at
grant date
`
ESOP3 (Refer Note below) 20,00,000 July 19, 2017 July 19, 2027 83.50 57.42
ESOP4 (Refer Note below) 10,00,000 November 13, 2018 November 13, 2028 109.00 55.47
ESOP5 (Refer Note below) 1,31,00,000 March 20, 2019 March 20, 2030 91.40 40.19
ESOP6 (Refer Note below) 70,10,000 February 11, 2020 February 11, 2031 82.90 38.58
ESOP 1 & ESOP 2 have got vested / lapsed before April 1, 2019. ESOP 4, a poron of ESOP 5 and ESOP 6 has got lapsed/forfeited during
theyear ended March31, 2022. Duringthe year ended March31, 2023,a poron of ESOP 3and a poron of ESOP5 havegot forfeited.
Note:
UnderESOP3andESOP5sharesvestonvaryingdateswithintheexpirydatemenonedabovewithanoponlifeof5yearsaervesng.
3.4.2 Fair value of share opons granted during the year
There are no opons granted during the year. The weighted average fair value of the stock opons granted during the nancial year is
`Nil(2021-22:`Nil).Oponsgrantedin theearlieryearswerepricedusinga binomialoponpricingmodel.Whererelevant,theexpected
life used in the model has been adjusted based on Management’s best esmate for the eects of non-transferability, exercise restricons
andbehaviouralconsideraons.Expected volalityis based onthe historicalshare price volality.
3.4.3 Movements in share opons during the year
Year ended
March 31, 2023
Numbers
Weighted
average
exercise price `
Year ended
March 31, 2022
Numbers
Weighted
average
exercise price `
Openingat the beginning of theyear 1,27,70,000 90.41 2,27,10,000 88.99
Granted during the year - - - -
Forfeited/lapsed during theyear 25,35,000 90.78 99,40,000 87.18
Exercised during the year 6,00,000 83.50 - -
Balance at the end of the year 96,35,000 90.74 1,27,70,000 90.41
Weighted Average shareprice on dateof exerciseof opon ` 156.50 (2022: ` Nil)
3.4.4 Share opons vested but not exercised during the year
ESOP 3: 2,00,000 opons (Year ended March 31, 2022: ESOP 3: 4,00,000 opons), ESOP 5: 44,17,500 (Year ended March 31, 2022: ESOP
5:Nil opons)
3.4.5 Share opons outstanding at the end of the year
Theshareoponsoutstandingatthe endoftheyearhadaweightedaverageexercisepriceof` 90.74 (as at March 31, 2022: ` 90.41) and
a weighted average remaining contractual life of 5.71 years (as at March 31, 2022: 6.58 years).
3.5 Lease arrangements
Company as lessee
Companyhas applied followingpraccalexpedientsforthe purpose of leaseon inial recognion:
1) Singlediscount ratehas been applied forleases with same characteriscs.
2) Non- lease componentwhich are dicultto be separatedfrom the leasecomponents aretakenas thepart of lease calculaon.
3) Shorttermleasesi.e.leaseshavingleasetermof12monthsorlesshadbeenignoredforthepurposeofcalculaonofright-of-useasset.
Expenses forthe year ended March 31, 2023 includes lease expense classied as Short term lease expenses aggregangto ` 15.54 crores
(March 31, 2022: `18.11crores)andvariableleasepaymentsaggregangto` 63.55 crores (March 31, 2022: ` 64.82 crores) which are not
requiredtobe recognisedas part of the praccalexpedient underInd AS 116 ‘Leases’ menonedabove.
AnnualReport 2022-23 159
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.6 Financial Instruments
3.6.1 Capital management
The Company manages its capital to ensure that it will be able to connue as going concern while maximising the return to stakeholders
throughthe opmisaonof the debt andequity balance.
The Company determines the amount of capital requiredon the basis of annual master planning and budgeng and ve year’s corporate
planforworkingcapital,capitaloutlayandlong-termproductandstrategicinvolvements.Thefundingrequirementsaremetthroughequity,
internalaccruals and acombinaon of bothlong-term and short-term borrowings.
The Company monitors the capital structure on the basis of total debt to equity and maturity prole of the overall debt porolio of the
Company.
March 31, 2023 March 31, 2022
` Crores ` Crores
Debt(long-term and short-term borrowingsand lease liabilies net oeecveinterestrate
adjustment)
3,224.83 3,553.88
TotalEquity 8,425.80 7,336.90
Debtequity rao 0.38 0.48
Thequarterlyreturnsorstatements ofcurrentassetsledbythe CompanywithBanksandFinancial Instuonsareinagreementwiththe
books of account.
TheCompany has compliedwith covenantsgivenunder the facilityagreements executed forits borrowings.
3.6.2 Financial risk management
In course of its business, the Company is exposed to certain nancial risks that could have signicant inuence on the Company’s business
and operaonal / nancial performance. These include market risk (including currency risk, interest rate risk and other price risk), credit risk
and liquidity risk.
TheBoardofDirectorsreviewsandapprovesriskmanagementframeworkandpoliciesformanagingtheserisksandmonitorssuitablemigang
aconstakenby themanagement tominimise potenaladverseeectsand achieve greaterpredictabilityto earnings.
Inlinewiththeoverallriskmanagementframeworkandpolicies,thetreasuryfunconprovidesservicestothebusiness,monitorsandmanages
throughan analysisof the exposuresby degreeand magnitude of risks.
The Company uses derivave nancial instruments to hedge risk exposures in accordance with the Company’s policies as approved by the
board of directors.
(A) Market risk
Market risk represent changes in market prices, liquidity and other factors that could have an adverse eect on realisable fair values
or future cash ows to the Company. The Company’s acvies expose it primarily to the nancial risks of changes in foreign currency
exchange ratesand interest ratesasfuture specic market changes cannotbe normally predictedwith reasonable accuracy.
(1) Foreign currency risk management:
The Company undertakes transacons denominated in foreign currencies and thus it is exposed to exchange rate uctuaons. The
Companyacvelymanagesitscurrencyrateexposures,arisingfromtransaconsenteredanddenominatedinforeigncurrencies,through
acentralisedtreasurydivisionandusesderivaveinstrumentssuchasforeigncurrencyforwardcontractsandcurrencyswapstomigate
therisks fromsuch exposures.The use of derivaveinstruments is subjectto limits and regularmonitoring byManagement.
The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilies at the end of the
reporngperiod areas follows:
As on March 31, 2023 (all amounts are in equivalent ` in Crores):
Currency Liabilies Assets Net overall
exposure on
the currency
- net assets /
(net liabilies)
Gross
exposure
Exposure
hedged
using
derivaves
Net liability
exposure on
the currency
Gross
exposure
Exposure
hedged
using
derivaves
Net asset
exposure on
the currency
USD 770.57 641.23 129.34 393.50 359.48 34.02 (95.32)
EUR 11.95 6.63 5.32 1.74 - 1.74 (3.58)
GBP 0.07 - 0.07 0.85 - 0.85 0.78
JPY 1.17 0.32 0.85 - - - (0.85)
SGD 172.21 172.21 - - - - -
AED 0.53 - 0.53 51.60 - 51.60 51.07
Others 6.52 - 6.52 2.81 - 2.81 (3.71)
160 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.6 Financial Instruments (contd.)
As on March 31, 2022 (all amounts are in equivalent ` in Crores):
Currency Liabilies Assets Net overall
exposure on
the currency
- net assets /
(net liabilies)
Gross
exposure
Exposure
hedged
using
derivaves
Net liability
exposure on
the currency
Gross
exposure
Exposure
hedged
using
derivaves
Net asset
exposure on
the currency
USD 920.57 815.20 105.37 351.67 187.32 164.35 58.98
EUR 45.81 42.18 3.63 2.49 - 2.49 (1.14)
GBP 0.67 - 0.67 0.36 - 0.36 (0.31)
JPY 1.64 1.64 - - - - -
SGD 153.69 153.69 - - - - -
AED 0.32 - 0.32 48.50 - 48.50 48.18
Others 5.09 - 5.09 14.40 - 14.40 9.31
Foreign currency sensivity analysis:
MovementinthefunconalcurrenciesofthevariousoperaonsoftheCompanyagainstmajorforeigncurrenciesmayimpacttheCompany’s
revenuesfromitsoperaons.Anyweakeningofthe funconal currencymayimpactthe Company’sexportproceeds, importpaymentsand
cost of borrowings.
Theforeignexchangeratesensivityiscalculatedforeachcurrencybyaggregaonofthenetforeignexchangerateexposureofacurrency
andaparallelforeignexchangeratesshiintheforeignexchangeratesofeachcurrencyby2%,whichrepresentsManagement’sassessment
ofthe reasonably possible changein foreignexchange rates.
Thesensivityofprotorlosstochangesintheexchangeratesarisesmainlyfromforeigncurrencydenominatednancialinstrumentsand
theimpactontheothercomponentsofequityarisesfromforeigncurrencyforwardcontractsdesignatedascashowhedges.Thefollowing
tabledetailsthe Company’s sensivitymovement inthe increase / decreasein foreigncurrenciesexposures(net):
` Crores
USD impact
March 31, 2023 March 31, 2022
Protor loss 1.91 1.18
Equity 1.91 1.18
EUR impact
March 31, 2023 March 31, 2022
Protor loss 0.07 0.02
Equity 0.07 0.02
GBP impact
March 31, 2023 March 31, 2022
Protor loss 0.02 0.01
Equity 0.02 0.01
JPY impact
March 31, 2023 March 31, 2022
Protor loss 0.02 -
Equity 0.02 -
SGD impact
March 31, 2023 March 31, 2022
Protor loss - -
Equity - -
AED impact
March 31, 2023 March 31, 2022
Protor loss 1.02 0.96
Equity 1.02 0.96
Impact of other currencies
March 31, 2023 March 31, 2022
Protor loss 0.07 0.19
Equity 0.07 0.19
AnnualReport 2022-23 161
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.6 Financial Instruments (contd.)
Thefollowing tabledetailsthe foreigncurrency forward contractsoutstandingat theend of the reporngperiod:
Figures in Crores
March 31, 2023 Foreign currency Noonal
value
in `
Fair value
assets /
(liabilies)
in `
(Refer Note)
Maturity date Hedge
rao
Weighted
Average rate
Cash ow hedges:
SellUSD - Buy INR USD 1.01 82.85 0.52 April2023 - June2023 1 : 1 USD 1 : INR 82.88
BuyUSD - Sell INR USD 1.01 82.86 (0.62) April 2023 - June 2023 1 : 1 USD 1 : INR 82.98
BuyJPY - Sell INR JPY 0.68 0.42 # April 2023 1 : 1 JPY 1 :INR 0.62
Fair value hedges:
BuyUSD - Sell INR USD 1.12 92.12 (0.62) April 2023 - June 2023 1 : 1 USD 1 : INR 82.92
SellUSD - Buy INR USD 4.37 359.48 1.12 April 2023- June 2023 1 : 1 USD 1 : INR 82.63
BuyEUR - Sell INR EUR 0.07 6.63 0.08 May 2023 1 : 1 EUR 1 : INR 89.02
BuyJPY - Sell INR JPY 0.51 0.32 # April 2023 -May 2023 1 : 1 JPY1 : INR 0.62
Figures in Crores
March 31, 2022 Foreign currency Noonal
value
in `
Fair value
assets /
(liabilies)
in `
(Refer Note)
Maturity date Hedge
rao
Weighted
Average rate
Cash ow hedges:
SellUSD - Buy INR USD 0.43 32.21 0.47 May 2022 1 : 1 USD 1 : INR 77.37
BuyUSD - Sell INR USD 0.20 15.16 (0.25) May 2022 1 : 1 USD 1 : INR 77.50
BuyEUR - Sell INR EUR 0.20 16.84 (0.06) May 2022 1 : 1 EUR 1 : INR 85.22
Fair value hedges:
BuyUSD - Sell INR USD 0.75 56.59 (1.20) April 2022 - June 2022 1 : 1 USD 1 : INR 77.89
SellUSD - Buy INR USD 2.47 187.32 (0.29) April 2022 1 : 1 USD 1 : INR 75.87
BuyEUR - Sell INR EUR 0.50 42.18 (4.64) April2022 - March2023 1 : 1 EUR 1 : INR 97.36
BuyJPY - Sell INR JPY 2.64 1.64 # April 2022 1 : 1 JPY 1 :INR 0.62
Note:
Includedin the balance sheet under‘Current -other nancial assets’ and ‘Current-other nancial liabilies’. [ReferNotes 1.12 and 1.23]
#amount is below roundingo norms adoptedby the Company.
(2) Interest rate risk management:
The Company is exposed to interest rate risk pertaining to funds borrowed at both xed and oang interest rates. The risk is
managed bythe Companyby maintaining an appropriatemix between xedand oang rateborrowings by the use of interestrate
swapcontracts.Hedgingacviesareevaluatedregularlytoalignwithinterestrateviewsanddenedriskappete,ensuringthemost
cost-eecve hedging strategies. Further, in appropriate cases, the Company also eects changes in the borrowing arrangements to
convertoang interestratesto xedinterest rates.
The exposureof company'sborrowingsto interestratechangesat the endof the reporng periodare as follows:
March 31, 2023 March 31, 2022
` Crores ` Crores
Variable rateBorrowings 612.50 487.50
FixedrateBorrowings* 2,503.19 2,958.17
3,115.69 3,445.67
* includes variablerateborrowingsamounngto ` 715.88 crores (March 31, 2022: `910.16 crores)subsequentlyconvertedtoxed
rate borrowings through swap contracts
162 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.6 Financial Instruments (contd.)
Interest rate sensivity analysis
The sensivity analysis below has been determined based on the exposure to interest rates at the end of the reporng period. For
oang rate liabilies, the analysis is prepared assuming that the amount of the liability as at the end of the reporng period was
outstanding for the whole year. A 25 basis point increase or decrease is used when reporng interest rate risk internally to key
management personnel and represents Management’s assessment of the reasonably possible change in interest rates.
If inte rest rates had been 25 basis points higher/ lower, the Company’s prot / loss for the year ended March 31, 2023 would
decrease/increaseby`0.77crores(March31,2022decrease/increaseby`0.69crores).ThisismainlyaributabletotheCompany’s
exposuretointerestrates on its variablerateborrowings.
(3) Foreign currency and interest rate sensivity analysis for swap contracts:
The Company has taken foreign currency and interest rate swap (FCIRS) contracts for hedging its foreign currency and interest rate
risks related to certain external commercial borrowings. The mark-to-market gain / (loss) as at March 31, 2023 is ` 96.93 crores
(March 31, 2022: ` 39.89 crores). If the foreign currency movement is 2% higher / lower and interest rate movement is 200 basis
pointshigher/lowerwithallothervariablesremainingconstant,theCompany’sprot/lossfortheyearendedMarch31,2023would
approximatelydecrease/increase by` Nil (yearended March 31,2022: decrease /increase by ` Nil).
(4) Equity price risk:
Equitypriceriskisrelatedtothechangeinmarketreferencepriceoftheinvestmentsin quotedequitysecuries.Thefairvalueofsome
ofthe Company’s investments exposesthe Company toequity price risks.In general,these securies arenot held fortradingpurposes.
(B) Credit risk
CreditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligaonsresulnginnanciallosstotheCompany.The
Companyhasadoptedapolicyofonlydealingwithcreditworthycounterparesandobtainingsucientcollateral,whereappropriate,
as a means of migangthe risk of nancial loss fromdefaults. The Company’s exposureand the credit rangsof its counterpares
areconnuouslymonitored andthe aggregatevalueof transaconsconcluded is spreadamongst approvedcounterpares.
Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit
evaluaonisperformedonthenancialcondionofaccountsreceivableand,whereappropriate,creditguaranteecoveristaken.The
Company operates predominantly on cash and carry basis excepng sale to State Transport Undertaking (STU), Government project
customers based on tenderterms and certainexport /domesc customerswhichare on creditbasis. The average creditperiod is in
therangeof7daysto90days.However,inselectcases,creditisextendedwhichisbackedbySecuritydeposit/Bankguarantee/Leer
of credit and other forms. The Company’s trade and other receivables consists of a large number of customers,across geographies,
hencethe Company isnot exposed toconcentraonriskexceptin case ofa STU.
The Company makes a loss allowance using simplied approach for expected credit loss (ECL) and on a case to case basis.
ECL arethe weighted average of creditlosses with the expected risk of defaultoccurring as the weights (historicallynot signicant).
ECL is dierence between all contractual cash ows that are due to the Company in accordance with the contract and all the cash
owsthat theCompany expectsto receive.
Expected credit loss for other than trade receivables has been assessed and based on life-me expected credit loss, loss allowance
provisionhas been made.The ageing on tradereceivableis givenin Note1.10.
Thecreditriskonliquidfundsandderivavenancialinstrumentsislimitedbecausethecounterparesarebankswithhighcredit-rangs.
(C) Liquidity risk
Liquidity risk refers to the risk that the Companycannot meet its nancial obligaons.The objecve of liquidity risk management is
tomaintainsucient liquidity andensure thatfunds areavailablefor useas per requirements.TheCompany hasobtained fundand
non-fundbasedworkingcapitallimitsfromvariousbanks.Furthermore,theCompanyhasaccesstofundsfromdebtmarketsthrough
commercialpaperprograms,non-converbledebentures,and otherdebt instruments.TheCompanyinvestsitssurplus funds inbank
xeddeposit andmutual funds, which carry minimalmark to marketrisks.
The companyhad access tothe followingundrawnborrowingfacilies atthe end of the reporngperiod:
March 31, 2023 March 31, 2022
` Crores ` Crores
From Banks
- Secured 1,986.95 2,200.00
- Unsecured 503.09 786.33
Total 2,490.04 2,986.33
Further to the above, the Company has an opon to issue commercial paper for an amount of ` 2,000 crores
(March 31, 2022 : ` 2,000 crores). The Company also constantly monitors funding opons availablein the debt and capital markets
witha view tomaintain nancial exibility.
AnnualReport 2022-23 163
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.6 Financial Instruments (contd.)
The table below summarises the maturity prole remaining contractual maturity period at the balance sheet date for its non-derivave
nancialliabilies based on the undiscountedcash ows.
` Crores
March 31, 2023 Due in 1st year Due in 2nd to 5th year Due aer 5th year Total
Tradepayables 7,175.12 - - 7,175.12
Othernancial liabilies 889.33 23.01 - 912.34
Borrowings 1,612.99 1,905.55 86.41 3,604.95
Leaseliabilies 16.57 28.84 26.94 72.35
9,694.01 1,957.40 113.35 11,764.76
` Crores
March 31, 2022 Due in 1st year Due in 2nd to 5th year Due aer 5th year Total
Tradepayables 6,875.23 - - 6,875.23
Othernancial liabilies 647.44 24.36 - 671.80
Borrowings 847.05 2,985.91 240.88 4,073.84
Leaseliabilies 14.83 32.97 27.71 75.51
8,384.55 3,043.24 268.59 11,696.38
Asthereisnoexpectedcreditlossonthenancialguaranteesgiventogroupcompanies,theCompanyhasnotrecognisedaliabilitytowards
nancialguaranteeas at theend of the reporngperiod. Accordingly, not included in theabove table.
Thetablebelowsummarisesthematurityproleforitsderivavenancialliabiliesbasedontheundiscountedcontractualnetcashinows
and oulows on derivave liabilies that sele on a net basis, and the undiscountedgross inows and oulows on those derivavesthat
requiregrossselement. When theamount payableor receivableis not xed,the amountdisclosed has been determinedby reference to
theprojectedinterestratesas illustratedby theyield curves atthe end of the reporngperiod.
` Crores
March 31, 2023 Due in 1st year Due in 2nd to 5th year Carrying amount
Currency and interest rate swaps - - -
Foreignexchangeforwardcontracts 1.43 - 1.43
1.43 - 1.43
March 31, 2022 Due in 1st year Due in 2nd to 5th year Carrying amount
Currency and interest rate swaps 0.34 5.05 5.39
Foreignexchangeforwardcontracts 6.52 - 6.52
6.86 5.05 11.91
164 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.6 Financial Instruments (contd.)
3.6.3 Categories of Financial assets and liabilites: ` Crores
As at
March 31, 2023
As at
March 31, 2022
Financial assets
a. Measured at amorsed cost:
Investments (net of impairment) 3,456.12 3,323.12
Cash and cash equivalents 454.11 994.25
Other bank balances 47.18 52.71
TradeReceivables(net of allowance) 4,062.71 3,111.05
Others(net of allowance) 579.90 1,018.38
b. Mandatorily measured at fair value through prot or loss (FVTPL) / other
comprehensive income (OCI):
Investments 3,207.48 1,496.51
Derivavesdesignatedin hedge accounngrelaonships 98.84 45.83
Financial liabilies
a. Measured at amorsed cost:
Borrowings 3,180.10 3,507.10
TradePayables 7,175.12 6,875.23
Other nancial liabilies 961.06 717.23
Lease liabilies 44.73 46.78
b. Mandatorily measured at fair value through prot or loss (FVTPL) / other comprehensive
income (OCI):
Derivavesdesignatedin hedge accounngrelaonships 1.43 11.91
3.6.4 Fair value measurements:
(A) Financial assets and liabilies that are not measured at fair values but in respect of which fair values are as follows:
The carrying amounts of trade receivables,trade payables, capital creditors and cash and cash equivalentsare considered to be the
same as their fair values, due to their short-term nature. The fair values for loans, security deposits were calculated based on cash
owsdiscounted using a currentlending rate.The fair values of non-currentborrowings are based on discountedcash ows using a
currentborrowing rate.For nancial assets and liabilies that are measuredat fair value,the carrying amounts are equal to the fair
values.
(B) Financial assets and nancial liabilies that are measured at fair value on a recurring basis as at the end of each reporng period:
Some of the Company’s nancial assets and nancial liabilies are measured at fair value at the end of each reporng period. The
following table gives informaon about how the fair values for material nancial assets and material nancial liabilies have been
determined(in parcular, the valuaontechnique(s) andinputs used).
Financial assets/
nancial liabilies
Fair value as at Fair value
hierarchy
Valuaon technique(s) and key input(s)
March 31, 2023 March 31, 2022
Derivaveinstruments, i.e.
forward foreign currency
contracts, currency and
interest rate swaps
Assets–
`98.84 crores;
andLiabilies –
` 1.43 crores
Assets–
`45.83 crores;
andLiabilies –
` 11.91 crores
Level 2 Discountedfuturecashowswhichareesmatedbasedon
forward exchangerates(fromobservable forwardexchange
rates at the end of the reporng period) and contract
forward rates, discounted at a rate that reects the credit
riskof the Company/ various counterpares.
Further,incaseofswapcontracts,thefutureesmatedcash
ows also consider forward interest rates (from observable
yieldcurvesattheendofthereporngperiod)andcontract
forward rates, discounted at a rate that reects the credit
riskof the Company/ various counterpares.
AnnualReport 2022-23 165
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.6 Financial Instruments (contd.)
Financial assets Fair value as at Fair value
hierarchy
Valuaon technique(s) and
key input(s)
Signicant
unobservable input(s)
Relaonship of
unobservable
inputs to fair
value
March 31,
2023
March 31,
2022
Investments in
mutual funds
` 2771.42
crores
` 1298.05
crores
Level 1 Net assets value in an
acvemarket
Not applicable Not applicable
Investments in
unquoted preference
shares
Preference
shares of:
Switch
Mobility
Automove
Limited-
` 171.40
crores
(Refer Note
1.3)
HindujaTech
Limited-
` 15.40 crores
Ashok Leyland
(UAE) LLC
` 42.89 crores
Others-
` 6.93 crores
(Refer Note
1.3)
Preference
shares of:
HindujaTech
Limited-
` 16.11 crores
Ashok Leyland
(UAE) LLC
` 44.17 crores
Others-
` 6.96 crores
(Refer Note
1.3)
Level 3 Income approach– in this
approach, the discounted
cashow method usedto
capture the present value
ofthe expectedfuture
economicbenets tobe
derived from the ownership
of these preference shares
Thesignicant inputs
were:
a)the esmated
cashows fromthe
dividends on these
preference shares
andthe redempon
proceedson maturity;
and
b) the discount rate
to compute the
present value of the
futureexpectedcash
ows
A slight decrease
inthe esmated
cashinows
inisolaon
would result
ina signicant
decrease in the
fair value.
(Note 2)
Investments in
unquoted equity
shares& Investment
in special limited
partnership
Equity shares
of:
Hinduja
(Energy)
Limited-
` 147.00
crores
Others-
` 52.44
crores
(Refer Note
1.3)
Equity shares
of:
Hinduja
(Energy)
Limited-
` 81.33 crores
Others-
` 49.89
crores
(Refer Note
1.3)
Level 3 Income approach and Net
AssetValue(Realisable
value)approach– in these
approaches, the cash
owmethod was usedto
capture the present value
ofthe expectedfuture
economicbenets tobe
derived from the ownership
of these equity instruments
Thesignicant inputs
were:
a)the esmatedcash
ows;and
b) the discount rate
to compute the
present value of the
futureexpectedcash
ows
A slight decrease
inthe esmated
cashinows
inisolaon
would result
ina signicant
decrease in the
fair value.
(Note 3 and 4)
Notes:
1) Therewereno transfers betweenLevel1, 2 and 3 during theyear.
2) Other things remaining constant,a 5% increase / decrease in the WACCor discountrate used would decrease / increase the fair value of
the unquoted preference shares by ` 83.66 crores/ ` 165.18 crores (as at March 31, 2022: `14.61 crores/ ` 20.27 crores).
3) Other things remaining constant, a 50 basis points increase / decrease in the WACC or discount rate used would decrease / increase the
fair value of the unquoted equity instruments by `14.98 crores/ ` 14.37 crores (as at March 31, 2022: ` 12.96 crores/ ` 13.70 crores).
4) Otherthings remainingconstant,a5% increase/ decreasein the revenuewouldincrease/ decreasethe fairvalueof the unquotedequity
instruments by `48.61 crores/ ` 49.59 crores (as at March 31, 2022: `44.82 crores/ ` 44.76 crores).
5) Gain / loss recognised in prot or loss included in other income (Refer Note 2.2) arising from fair value measurement of Level 3
nancial assets is a gain of ` 6.34 crores (as at March 31, 2022: gain of ` 1.44 crores). The Company has also recorded a fair value gain
of ` 65.67 crores (March 31, 2022: loss of ` 107.13 crores) in equity investment of Hinduja Energy India Limited and presented the same
underexceponalitems inNote 2.8.
166 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.7 Revenue from contracts with customers:
3.7.1 Disaggregated revenue informaon
Parculars March 31, 2023 March 31, 2022
` Crores ` Crores
Type of goods andservice
a) Sale of products
- Commercialvehicles 31,646.05 18,003.09
- Engines andgensets 633.84 514.64
- Ferrouscasngsand paerns 609.33 469.02
- Spareparts and others 2,577.88 2,033.47
35,467.10 21,020.22
b) Sale of services
- Freightand Insurance 570.15 342.65
- Annual MaintenanceContracts 253.26 226.42
- Warranty services 128.77 187.56
- Others 154.70 98.78
1,106.88 855.41
c) Other operangrevenues
- Scrapsales 108.56 72.40
- Others 11.11 7.98
119.67 80.38
Less: Rebates and discounts 597.05 307.88
Total revenue from contract with customers 36,096.60 21,648.13
India 34,230.04 20,092.10
Outside India 1,866.56 1,556.03
Total revenue from contract with customers 36,096.60 21,648.13
Timing of revenue recognion March 31, 2023 March 31, 2022
Parculars At a point
in me
Over a period
of me
At a point
in me
Over a period
of me
- Sale of productsand other operang
revenue
35,575.66 - 21,100.60 -
- Sale ofServices -Freight andInsurance - 570.15 - 342.65
- Saleof Services - Annual Maintenance
Contracts, warranty services and others
75.32 472.52 47.58 465.18
Less: Rebates and discounts 597.05 - 307.88 -
Total revenue from contract with customers 35,053.93 1,042.67 20,840.30 807.83
AnnualReport 2022-23 167
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.7 Revenue from contracts with customers: (contd.)
3.7.2 Contract balances
Parculars March 31, 2023 March 31, 2022
` Crores ` Crores
Tradereceivables(Refer Notes 1.4 &1.10) 4,062.71 3,096.38
Contractliabilies (Refer Notes1.18 & 1.24) 612.87 606.78
Tradereceivablesarenon - interestbearingand are generallyon termsof 7 to90 days(Refer Credit riskNote 3.6.2 (B)).
Contractliabilies includes advancereceivedfrom customers and income receivedin advance arisingdue to allocaonof transacon price
towardsfreightandinsuranceservicesonshipmentsnotyetdeliveredtocustomerandunexpiredservicewarranes.Thereisnosignicant
changein contractliabilies.
3.7.3 Revenue recognised in relaon to contract liabilies
March 31, 2023 March 31, 2022
` Crores ` Crores
Revenuerecognised fromcontractliabilies atthe beginning of the year 407.07 468.23
Revenuerecognised fromperformanceobligaonssased inprevious years 5.22 0.81
3.7.4 Reconciliaon of revenue recognised in the statement of prot and loss with the contracted price
Parculars March 31, 2023 March 31, 2022
` Crores ` Crores
Contracted price 36,693.65 21,956.01
Adjustments
Rebates and discounts (597.05) (307.88)
Revenue from contract with customers 36,096.60 21,648.13
3.7.5 Unsased or parally unsased performance obligaon
Thetransacon priceallocated tothe remainingperformance obligaons(unsasedor parally unsased)areas follows:
Parculars March 31, 2023 March 31, 2022
` Crores ` Crores
Within one year 425.14 457.70
More than one year 256.24 223.60
681.38 681.30
The remaining performance obligaons expected to be recognised in more than one year relate to the extended warranty and other
obligaonwhich isexpectedto be recognisedovera period of 24 monthsto 72 months.
168 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.8 Related party disclosure
a) List of pares where control exists
Holding company
HindujaAutomove Limited,United Kingdom
Machen Holdings SA
(HoldingCompany of HindujaAutomove Limited,United Kingdom)
MachenDevelopment Corporaon,Panama
(Holding Company of Machen Holdings SA)
AmasHoldings SPF*
(HoldingCompany of MachenDevelopment Corporaon,Panama)
Subsidiaries
Albonair (India) Private Limited
Albonair GmbH, Germany
- Albonair (Taicang) AutomoveTechnology Co. Limited., China
Ashok Leyland (Nigeria) Limited
Gulf Ashley Motor Limited
OptarePlc,UK
- OptareUK Limited.
- SwitchMobility Limited,UK (Formerly OptareGroupLimited)
- OHM Global Mobility Limited ................................................................................. Liquidated on September 16, 2022
- SwitchMobility Automove Limited ................................................................................................ From June 14, 2021
- SwitchMobility Europe S.I, Spain .......................................................................................... From December 14, 2021
- OHM InternaonalMobility Limited,United Kingdom .............................................................. From August 24, 2022
- OHM Global Mobility PrivateLimited .......................................................................................... From August 24, 2022
- JamesstanInvestmentsLimited ....................................................................................... Liquidated on April 13, 2021
- OptareHoldings Limited .................................................................................................... Liquidated on April 13, 2021
- Optare(Leeds) Limited ...................................................................................................... Liquidated on April 13, 2021
- EastLancashireBus BuildersLimited ........................................................................................ Liquidated on April 13, 2021
- OptareAustraliaPTYLTD ................................................................ ........................................ Deregistered on April 10, 2023
Ashok Leyland (Chile) S.A.
Hinduja Leyland Finance Limited
- Hinduja Housing FinanceLimited
- Hinduja InsuranceBrokingand Advisory Services Limited (underliquidaon)
- Gaadi MandiDigtal PlaormsLimited
HLF Services Limited
GlobalTVS Bus Body BuildersLimited
Ashok Leyland (UAE) LLC
- LLCAshok Leyland Russia
- Ashok LeylandWestAfricaSA
AshleyAviaonLimited
HindujaTech Limited
- Hinduja Tech (Shanghai) Co.,Limited
- Hinduja Tech GmbH, Germany
- Hinduja Tech Inc, UnitedStatesof America
- Hinduja Tech Canada Inc,Canada ......................................................................................................... From August 26, 2021
- Hinduja Tech Limited,UK .......................................................................................................................... From May 26, 2022
- DriveSystemDesign Limited,UK .................................................................................................... From November 30, 2022
- DriveSystemDesign Inc, USA ......................................................................................................... From November 30, 2022
- DriveSystemDesign SRO,Chez ...................................................................................................... From November 30, 2022
Vishwabuses and coachesLimited
GrodigitalplaormsLimited ....................................................................................................................................... From April 14, 2021
AnnualReport 2022-23 169
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.8 Related party disclosure (Contd.)
b) Other related pares
Fellow subsidiaries
GulfOil Lubricants IndiaLimited
Hinduja Energy (India) Limited
DA Stuart India Private Limited
Hinduja Renewables Private Limited
Prathama Solarconnect Energy Private Limited
OHMInternaonalMobility Limited, UnitedKingdom ..................................................... From August 02, 2021, Upto August 23, 2022
OHMGlobal Mobility PrivateLimited ................................................................................ From March 08, 2021, Upto August 23, 2022
GOCLCorporaonLimited
HRVaigai PrivateLimited
Associates
Ashok Leyland Defence Systems Limited
Lanka Ashok Leyland Plc
Mangalam Retail Services Limited
Joint Ventures
Ashley Alteams India Limited
AshokLeylandJohnDeereConstruconEquipmentCompanyPrivateLimited[AlongwithGulfAshleyMotorLimited](underliquidaon)
ZebeyondLimited, UK ..................................................................................................................................... From December 21, 2022
Enes where control exist
AshokLeyland EducaonalTrust
Enes where signicant inuence exist
Ashok Leyland Employees Gratuity Fund
AshokLeyland SuperannuaonFund
AshokLeyland EmployeesEnnore ProvidentFund Trust
AshokLeyland Senior ExecuvesProvidentFund Trust
AshokLeyland EmployeesHosur ProvidentFund Trust
AshokLeyland EmployeesBhandara ProvidentFund Trust
AshokLeyland EmployeesAlwar ProvidentFund Trust
Ennore Foundries Limited Employees Provident Fund
Ennore Foundries Gratuity Fund
Ennore Foundries Employees Pension cum Insurance Fund
EnnoreFoundries SeniorExecuvesSuperannuaonFund
Key management personnel
Mr. Dheeraj GHinduja, ExecuveChairman ...................................................................................................... From November 26, 2021
Mr. Dheeraj GHinduja, Non-execuveChairman ............................................................................................... upto November 25, 2021
Mr. Vipin Sondhi, Managing Directorand CEO ................................................................................................... upto December 31, 2021
Mr. Shenu Agarwal,Managing Directorand CEO ................................................................................................ From December 8, 2022
Mr. Gopal Mahadevan,Whole-me Directorand Chief Financial Ocer
Prof. Dr. Andreas H Biagosch
Dr. Andrew C Palmer ....................................................................................................................................... Upto November 3, 2022
Mr. Jean Brunol
Mr. Jose Maria Alapont
Ms. Manisha Girotra
Mr. Sanjay K Asher
Mr. Shom Ashok Hinduja .................................................................................................................................... From November 12, 2021
Mr. Saugata Gupta
Dr. C B Rao
Note:
TransaconwithRajalakshmi WindEnergyLimited (erstwhileAshok LeylandWind EnergyLimited)and PrathamaSolarconnectEnergy
Private Limited have not been disclosed as being with an associate since the Company does not have signicant inuence over
Rajalakshmi Wind Energy Limited and Prathama Solarconnect Energy Private Limited, although the Company holds 26% of the equity
sharecapitalof Rajalakshmi Wind EnergyLimited andPrathamaSolarconnect EnergyPrivateLimitedrespecvely.
*TheCompanyhasinmatedOcorianTrust(IsleOfMan)LimitedassignicantbenecialownerpursuanttotheCompanies(Signicant
BenecialOwners) Rules,2018
170 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.8 Related party disclosure (contd.)
c) Related Party Transacons - summary
` Crores
Subsidiaries Fellow
Subsidiaries
Associates Joint
Ventures
Holding
Company
Enes where
control exist
Enes where
signicant
inuence exist
Key
Management
Personnel
Total
Transacons during the year ended
March 31
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
1 Purchase of raw materials, components and
tradedgoods(net of GST)
1,217.39 582.22 173.96 97.78 1.64 1.73 130.61 56.66 - - - - - - - - 1,523.60 738.39
2 Salesand services (net of GST) 845.97 550.37 53.50 32.19 42.35 99.97 0.60 0.74 - - 0.88 (0.15) - - - - 943.30 683.12
3 OtheroperangIncome - - - - - - 2.18 2.13 - - - - - - - - 2.18 2.13
4 Otherexpenditureincurred/(recovered)
(net)
47.38 54.92 49.06 46.46 6.17 0.82 (0.04) 0.01 1.51 2.44 (0.85) (0.36) - - - - 103.23 104.29
5 Interest and other income 26.98 10.82 - - 0.85 0.78 0.19 0.31 - - - - - - - - 28.02 11.91
6 Purchase of assets 0.12 - - - - - 5.05 - - - - - - - - - 5.17 -
7 Sale of asset 1.90 2.42 - - - - - - - - - - - - - 0.29 1.90 2.71
8 Dividend payments - - - - - - - - 149.35 89.61 - - - - - - 149.35 89.61
9 Dividend Income - - - - 0.82 0.07 - - - - - - - - - - 0.82 0.07
10 Remuneraon tokeymanagement
personnel**
- - - - - - - - - - - - - - 35.75 24.82 35.75 24.82
11 Commissionand sing feestokey
managementpersonnel*
- - - - - - - - - - - - - - 5.98 4.23 5.98 4.23
12 Financial guarantees issued @ 463.39 130.98 - - - - - 12.50 - - - - - - - - 463.39 143.48
13 Financial guarantees released - 130.98 - - - - 3.13 14.70 - - - - - - - - 3.13 145.68
14 Investments in shares of 19.82 14.00 # - - - - 2.50 - - - - - - - - 19.82 16.50
15 Inter-corporatedepositsgiven 200.00 - - - - - - - - - - - - - - - 200.00 -
16 Loan converted into equity - 4.30 - - - - - - - - - - - - - - - 4.30
17 Consideraontowards saleof Electric vehicle
business including interest thereon
25.44 279.01 - - - - - - - - - - - - - - 25.44 279.01
18 Conversion of receivable on slump sale into
preference shares
301.00 - - - - - - - - - - - - - - - 301.00 -
19 Contribuontoemployeerelatedtrusts
made during the year including loans and
interest recovered
- - - - - - - - - - - - 211.88 203.83 - - 211.88 203.83
#amount is belowrounding o normsadoptedby the Company.
*includes commissionand sing feestootherdirectorsaggregangto ` 5.98 crores (2022: ` 4.13 crores)
@Includes nancial guaranteesissuedbut not yetulised by a subsidiary amounng to ` 130.98 crores for the year ended March 31, 2022.
Allthe transacons are atarms length in linewith the relatedpartytransaconspolicy of the Company
**pursuanttoseparaonofthe directoran amount of` 10.33croresisreversedinprotand loss accountdueto forfeitureofESOPs.
Forthe year ended March31,2022, the remuneraonpaidtocertaindirectorsamounngto` 17.81 croreswasinexcessofthe limit prescribedunder the Companies Act, 2013 and it wasapprovedbythe
shareholdersinthe Annual GeneralMeeng,in accordance with the provisions of theCompanies Act, 2013, as amendedfromme tome.
AnnualReport 2022-23 171
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.8 Related party disclosure (Contd.)
d) Related Party balances - summary ` Crores
Subsidiaries Fellow
Subsidiaries
Associates Joint
Ventures
Holding
Company
Enes
where
control exist
Enes
where
signicant
inuence
exist
Key
Management
Personnel
Total
Balances as on March 31 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
1 Tradereceivables(ReferNote1.4and 1.10) 217.05 97.97 19.25 10.64 22.86 55.42 0.13 0.52 - - 1.09 0.18 - - - - 260.38 164.73
2 Othernancial and non-nancialassets
(Refer Note 1.12)
200.85 284.79 - 1.06 - - - 5.16 - - - - - - - - 200.85 291.01
3 Tradeandother payables 241.91 210.22 35.81 25.89 8.21 0.63 6.48 5.56 0.07 0.07 - - 18.52 16.85 23.83 4.46 334.83 263.68
4 Shareapplicaonmoney(Refer Note1.12) - # - - - - - - - - - - - - - - - #
5 Financial guarantees 885.84 412.29 - - - - 6.88 10.00 - - - - - - - - 892.72 422.29
#amount is belowrounding o normsadoptedby the Company.
172 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.8 Related party disclosure (Contd.)
e) Signicant Related Party Transacons
` Crores
Transacons during the year ended March 31 2023 2022
1 Purchase of raw materials, components and traded goods (net of GST)
Ashley Alteams India Limited 130.61 56.66
GulfOil Lubricants IndiaLimited 161.39 91.21
GlobalTVS Bus Body BuildersLimited 86.52 68.65
Albonair (India) Private Limited 974.44 494.77
Vishwabuses and coachesLimited 74.81 9.63
2 Sales and services (net of GST)
Gulf Ashley Motor Limited 205.33 224.33
Ashok Leyland (UAE) LLC 513.40 282.00
Lanka Ashok Leyland Plc 23.01 80.35
SwitchMobility AutomoveLimited 112.61 40.63
GulfOil Lubricants IndiaLimited 53.33 32.19
3 Other Operang Income
Ashley Alteams India Limited 2.18 2.13
4 Other expenditure incurred / (recovered) (net)
HindujaAutomove Limited,United Kingdom 1.51 2.44
Gulf Ashley Motor Limited 2.43 6.34
HLF Services Limited 10.01 8.91
Ashok Leyland Defence Systems Limited (1.47) 0.18
HindujaTech Limited 28.79 26.14
Lanka Ashok Leyland Plc 7.64 0.64
Albonair GmbH 2.21 1.76
Ashok Leyland (UAE) LLC (0.99) 0.26
Hinduja Renewables Private Limited 7.42 6.70
GrodigitalplaormsLimited 11.04 9.47
Prathama Solarconnect Energy Private Limited 41.45 40.67
SwitchMobility AutomoveLimited (4.73) (2.82)
5 Interest and other income
Ashok Leyland Defence Systems Limited 0.85 0.78
GlobalTVS Bus Body BuildersLimited - 3.62
Albonair (India) Private Limited 0.51 0.48
AshleyAviaonLimited 2.26 2.26
SwitchMobility AutomoveLimited 20.72 1.31
Albonair GmbH 0.59 0.66
OptarePlc 1.43 1.02
Vishwabuses and coachesLimited 0.87 0.87
6 Purchase of assets
Ashley Alteams India Limited 5.05 -
7 Sale of assets
Vishwabuses and coachesLimited 0.11 0.36
GrodigitalplaormsLimited - 2.06
SwitchMobility AutomoveLimited 1.79 -
Mr. Vipin Sondhi - 0.29
8 Dividend payment
HindujaAutomove Limited,United Kingdom 149.35 89.61
9 Dividend income
Ashok Leyland Defence Systems Limited 0.60 -
Lanka Ashok Leyland Plc 0.22 0.07
10 Financial guarantees issued
OptarePlc - 130.98
Switch Mobility Limited 463.39 -
Ashley Alteams India Limited - 12.50
11 Financial guarantees released
Ashley Alteams India Limited 3.13 14.70
Switch Mobility Limited - 130.98
12 Investment in shares of
AshleyAviaonLimited 16.42 4.00
Vishwabuses and coachesLimited 3.40 -
GrodigitalplaormsLimited - 10.00
Ashley Alteams India Limited - 2.50
HRVaigai PrivateLimited # -
13 Inter-corporate deposits given
SwitchMobility AutomoveLimited 200.00 -
AnnualReport 2022-23 173
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.8 Related party disclosure (Contd.)
e) Signicant Related Party Transacons
` Crores
Transacons during the year ended March 31 2023 2022
14 Commission and sing fees to key management personnel
Mr. Dheeraj G Hinduja - 0.10
Commissionand sing feesto other directors in aggregate 5.98 4.13
15 Contribuon to employee related trusts made during the year including loans and interest
recovered
AshokLeyland EmployeesEnnore ProvidentFund Trust 52.95 47.10
AshokLeyland EmployeesHosur ProvidentFund Trust 47.35 41.95
AshokLeyland Senior ExecuvesProvidentFund Trust 49.38 45.77
Ashok Leyland Employees Gratuity Fund 19.36 30.00
AshokLeyland SuperannuaonFund 16.06 15.21
Ennore Foundries Gratuity Fund 5.37 4.11
Ennore Foundries Limited Employees Provident Fund 12.52 11.35
16 Loan converted into equity
Albonair GmbH - 4.30
17 Consideraon towards sale of Electric vehicle business including interest thereon
SwitchMobility AutomoveLimited 25.44 279.01
18 Conversion of receivable on slump sale into preference shares (Refer Note 1.3)
SwitchMobility AutomoveLimited 301.00 -
19 Remuneraon to key management personnel *
Mr. Vipin Sondhi
Short termemployee benets - 14.65
Other long termemployeebenets - 0.08
Mr. Shenu Agarwal
Short termemployee benets 1.41 -
Mr. Gopal Mahadevan
Short termemployee benets 14.00 5.65
Other long termemployeebenets 0.08 0.08
Share-basedpayment 2.26 2.62
Mr. Dheeraj G Hinduja
Short termemployee benets 17.92 1.66
Other long termemployeebenets 0.08 0.08
#Amount is below roundingo norms adoptedby theCompany.
@pursuantto separaon of the director an amount of ` 10.33 croreswere reversed in prot and loss account due to forfeiture of ESOPs
during the year ended March 31, 2022.
*Excludescontribuonforgratuityandcompensatedabsencesandlongtermincenveplanastheincrementalliabilityhasbeenaccounted
for the Company as a whole.
f. Details of loans / intercorporate deposits (excluding interest accrued) as required under regulaon 53(1)(f) of SEBI (Lisng Obligaons
and Disclosure Requirements) Regulaons
` Crores
Name of the company March 2023 March 2022
Status Outstanding
amount
Maximum
loan
outstanding
during the
year
Investment
in shares
of the
Company
Status Outstanding
amount
Maximum
loan
outstanding
during the
year
Investment
in shares
of the
Company
AlbonairGmbH* Subsidiary - - - Subsidiary - 4.48 4.3 *
Switch Mobility
AutomoveLimited
Subsidiary 200.00 200.00 - Subsidiary - - -
* During the yearended March 31,2022, loan outstanding,has been convertedtoinvestmentinequity shares.
174 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.8 Related party disclosure (Contd.)
g. Disclosure as required under secon 186(4) of the Companies Act, 2013:
` Crores
Parculars As at
March 31,
2023
As at
March 31,
2022
Maximum amount
outstanding
during the year
Purpose
i) Intercorporate deposits outstanding
- SwitchMobility AutomoveLimited 200.00 - 200.00 Funding of operaons
ii) Investments (Refer Note 1.3) 4,496.90 4,181.88
iii) Guaranteesavailed[Refer Notebelow]
- Optareplc 300.88 294.39 300.88 Guarantees for working capital loan
- SwitchMobility Limited, UK 459.74 - 459.74 Guaranteesfortermloan/workingcapitalloan
- AshleyAlteams India Limited 6.88 10.00 10.00 Guarantees for term loan
- Albonair GmbH 125.22 117.90 125.22 Guarantees for working capital loan
Note
Guarantees given during the year amounts to ` 463.39 crores (2022: ` 140.97 crores), which are given for the borrowings availed by Switch
Mobility Limited, UK (March 31, 2022: Optare Plc and Ashley Alteams India Limited). Guarantees released during the year amounts to
` 3.12 crores (2022: ` 14.70 crores), pertaining to borrowing availed by Ashley Alteams India Limited.
Theterms arein compliance with Secon186(7) of the Companies Act,2013.
3.9 Conngent liabilies
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
a) Claims against the Company not acknowledged as debts (net)
i) Sales tax/ VAT / GST# 257.22 246.25
ii) Exciseduty # 9.20 8.68
iii) Service Tax # 110.72 110.80
iv) Customs Duty # 0.43 0.43
v) Income tax$ - 142.95
vi) Others 43.02 42.97
b) Corporate guarantees given to others for loans taken by subsidiaries and a joint venture
company
892.72 422.29
$Theserelatestoissuesof deducbilityandtaxabilityinrespectof whichtheCompanyis inappealand inclusiveofthe eectofsimilar maers
in respect of assessments remaining to be completed.
#These havebeen disputed bythe Companyon account ofissues of applicability and classicaon.
Futurecashoulowsinrespectoftheabovearedeterminableonlyonreceiptofjudgement/decisionspendingwithvariousforums/authories.
Notes :
TheCompanyevaluatedtheimpactoftherecentSupremeCourtJudgementinrelaontonon-exclusionofcertainallowancesfromthedenion
of“basicwages”oftherelevantemployeesforthepurposesofdeterminingcontribuontoprovidentfundundertheEmployees’ProvidentFunds
& Miscellaneous Provisions Act, 1952 and the Management believes that further clarity is required on this maer for the me period prior to
31stMarch2019.However,itisnotlikelytohaveasignicantimpactandaccordingly,noprovisionhasbeenmadeintheseFinancialStatements.
TheCompanyisinvolvedinvariousclaimsandaconsintheordinarycourseofbusiness.TheCompanyaccruesaliabilitywhenalossisconsidered
probableandtheamountcanbereasonablyesmated.Intheopinionofthemanagementtheoutcomeofanyexisngclaims,legalandregulatory
proceedings,ifdecidedadversely,is notexpectedtohaveamaterialadverse eect onthebusiness, nancialcondion,resultsofoperaonsand
cashows of theCompany basedon the currentposion of such claims /legal acons.
3.10 Commitments
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
a) Capital commitments (net of advances) not provided for 275.27 313.43
[including ` 9.70 crores (March 2022: `19.55 crores)in respect of intangibleassets]
b) Uncalled liability onpartly paid shares/ investments[Refer Note1.3] # 27.00
c) Other commitments
i) Financial support given to certain subsidiaries, joint ventures, etc.
(including undertaking provided to customers of certain subsidiaries).
ii) Lock-incommitmentin shareholdersagreement[ReferNote1.3]
Theoulow in respectof the aboveis not praccableto ascertainin view of theuncertaines involved.
#Amount is below roundingo norms adoptedby theCompany.
AnnualReport 2022-23 175
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.11 Details of Non-current borrowings:
` Crores
As at March 31, 2023 As at March 31, 2022
Non-
current
Current
Maturies
Total Parculars of Redempon /
Repayment
Non-
current
Current
Maturies
Total
a. Secured borrowings:
i. Term loans:
TL- 12 300.00 100.00 400.00 Repayable annually in 5 equal
installments starng from
September 9, 2022
400.00 100.00 500.00
TL- 13 225.00 75.00 300.00 Repayable annually in 4 equal
installments starng from
May 12, 2023
300.00 - 300.00
TL- 14 37.50 25.00 62.50 Repayable semi annually in
8 equal installments starng
from February 28, 2022
62.50 25.00 87.50
TL- 15 96.25 3.75 100.00 Repayable quarterly in
20 installments of varying
amounts starng from July 1,
2023
100.00 - 100.00
TL- 16 200.00 - 200.00 Repayable annually in 5 equal
installments starng from
March 25, 2025
200.00 - 200.00
TL- 17 225.00 12.50 237.50 Repayable semi annually in
12 installments of varying
amounts starng from
September 30, 2022
237.50 12.50 250.00
1,083.75 216.25 1,300.00 1,300.00 137.50 1,437.50
ii. Non-Converble
Debentures (NCD)
Series 3 200.00 - 200.00 Bullet repayment at the end
of 5 years from the date of
allotment i.e. March 17, 2027.
The Company has a call opon
toredeemthe debenturesaer
the end of 3 years.
200.00 - 200.00
Series 2 - 200.00 200.00 Bullet repayment at the end
of 3 years from the date of
allotment i.e. June 23, 2023
200.00 - 200.00
Series 1 - 400.00 400.00 Bullet repayment at the end
of 3 years from the date of
allotment i.e. May 19, 2023
400.00 - 400.00
200.00 600.00 800.00 800.00 - 800.00
iii. SIPCOTSo loan 31.18 - 31.18 August 1, 2025 31.18 - 31.18
31.18 - 31.18 31.18 - 31.18
176 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.11 Details of Non-current borrowings: (Contd.)
(i) TL -12 - Term loan was secured by way of rst ranking charge on the specied plant and machinery of a manufacturing unit of the
Companylocatedat Pantnagartothe extentof ` 400 crores.
(ii) TL - 13 - Term loan was secured by wayof rst ranking charge on the specied plant and machinery of the manufacturing units of
theCompany locatedatHosur to the extent of 1.25 mes of theamount of loan.
(iii) TL- 14- Termloan wassecuredbywayofexclusivechargeonthe speciedplantand machineryand othermoveablexedassetsof
amanufacturing unit ofthe Company locatedat Pantnagarto the extentof1.10 mes of the amountof loan.
(iv) TL -15- Termloan wassecuredbywayofexclusivechargeonthe speciedplantand machineryand othermoveablexedassetsof
themanufacturing units ofthe Company locatedat Pantnagarand Hosur to theextentof 1.25 mes of theamount of loan.
(v) TL-16-Termloan wassecuredbywayofrstrankingchargeonthespeciedplantandmachineryofthemanufacturingunitsofthe
Companylocatedat Chennaito the extentof` 200 crores.
(vi) TL-17-Termloanwassecuredbyway ofrstrankingchargeonthespeciedplantandmachineryofthemanufacturingunitsofthe
Companylocatedat Hosurand Bhandarato the extentof 1.10mes of the amountof loan.
(vii) NCD - Series 1 - 8% AL 2023 are secured by way of rst ranking charge over specic plant and machinery of manufacturing and
research and development units situated at Ennore, Pantnagar, Hosur and Vellivoyalchavadi and specic immoveable properes of
manufacturingunit atEnnore tothe extentof 1.10 mesof the amount of debenturesand interestaccrued thereon.
(viii) NCD - Series 2 - 7.65% AL 2023 are secured by way of First Ranking charge over specic plant and machinery of the manufacturing
units situated at Hosur and Alwar and specic immoveable properes situated at manufacturing unit at Ennore to the extent of
1.10mes of the amountof debenturesand interestaccrued thereon.
(ix) NCD- Series 3 - 7.30% AL 2027 are securedby way of FirstRanking charge overspecic plant and machinery of manufacturingunit
situatedatHosur to the extentof 1.10 mes of the amountof debenturesand interestaccrued thereon.
(x) The above SIPCOTso loan are securedby wayof rstcharge on the xedassets createdand the same shall be on pari passu with
otherrstcharge holdersof LCVdivision.
The companyhas registered the charges/ sasfaconofcharges withthe RegistrarofCompanies within the spulatedperiod.
` Crores
As at March 31, 2023 As at March 31, 2022
Non-
current
Current
Maturies
Total Parculars of Redempon /
Repayment
Non-
current
Current
Maturies
Total
b. Unsecured borrowings:
i. ECB loans
ECB-16 112.05 56.03 168.08 Repayable annually in 3 equal
installments starng from
November 18, 2023
152.24 - 152.24
ECB-15 54.78 54.78 109.56 Repayable annually in 3 equal
installments starng from
February 28, 2023
101.06 50.53 151.59
ECB-14 219.12 219.12 438.24 Repayable annually in 3 equal
installments starng from
September 23, 2022
404.22 202.11 606.33
385.95 329.93 715.88 657.52 252.64 910.16
ii. Interest free salestax
loans Programme II
66.41 - 66.41 Varying amounts repayable on a
periodical basis ending in June
2028
66.41 - 66.41
66.41 - 66.41 66.41 - 66.41
The above termloans, externalcommercial borrowings and loans from otherscarry varying ratesof interest rangingwith maximum rateof interest
goingupto9.25%p.a.(March31, 2022:8.45%p.a.). Theweightedaveragerateof interest oftheseloans isaround7.62%p.a. (2021-22:7.53%p.a.).
AnnualReport 2022-23 177
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.12 Details of current borrowings
As at
March 31, 2023
Parculars of Repayment As at
March 31, 2022
` Crores ` Crores
a. Secured borrowings
i - Billsdiscounted 13.06 Repayable on various dates upto August 2023 -
13.06 -
Workingcapitaldemandloanfrombanks/BillsdiscountedaresecuredbywayofhypothecaonofthewholestocksofRawMaterials,Semi
Finished and Finished goods, Stores and Spares not related to Plant and Machinery (Consumable stores and spares) Bills Receivable, Book
Debts and all other movables both present and future now lying or stored about the factory premises, godowns, warehouses, yards and any
otherlocaons tothe extentof ` 2,000 crores (March 31, 2022: ` 2,000 crores).
As at
March 31, 2023
Parculars of Repayment As at
March 31, 2022
` Crores ` Crores
b. Unsecured borrowings
i. - STL 24 - Repaid on August 30, 2022 150.00
ii. - STL 25 150.00 Repayable on August 25, 2023 -
150.00 150.00
i. - Bills discounted 105.57 Repayable /Repaid on variousdatesupto
December2023 / October 2022
116.83
105.57 116.83
The above outstanding borrowings carry varying rates of interest with the maximum rate of interest going upto 8.04% p.a.
(March31, 2022: 4.70%p.a.). The weightedaveragerateof interest of these borrowingsis around8.04% (2021-22: 4.70%) p.a.
The carrying value of the above borrowings (as reected in Notes 1.16 and 1.21) are measured at amorsed cost using eecve interest
method while the above borrowings represents principal amount outstanding.
3.13 Other Informaon (including foreign currency transacons)
Year ended
March 31, 2023
Year ended
March 31, 2022
` Crores ` Crores
3.13.1 Auditors' remuneraon
Includedunder selling and administraonexpenses- net [Refer Note2.7]
i) Fornancial audit 1.90 1.30
ii) Forother services - limited review, cercaonwork, etc. 1.09 0.80
iii) For reimbursementof expenses 0.10 0.05
3.13.2 Total research and development costs charged to the Statement of Prot and Loss
(including expenses capitalised) [including amount shownunder Note 2.7]
591.72 554.03
3.13.3 Impact of exchange (gain) / loss for the year in the Statement of Prot and Loss due to:
a) Translaon/selement (net)* 54.96 24.79
b) Exchangedierenceon swapcontracts* - 17.10
* Included under sellingand administraonexpenses- net and nance cost
[Refer Notes2.5 and 2.7]
c) Depreciaonon exchangedierencecapitalised# 55.67 62.75
#Included under depreciaonand amorsaon expense[ReferNote 2.6]
3.14 The informaon required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined
on the basis of informaon available with the Company. The amount of principal and interest outstanding is given below:
` Crores
Parculars March 2023 March 2022
i) Principalamount paid aerappointeddate during theyear 5.85 176.70
ii) Amount of interest due and payable for the delayed payment of principal amount 0.02 -
iii) Principal amount remaining unpaid as at year end (over due) - 2.95
iv) Principal amount remaining unpaid as at year end (not due) 79.60 64.65
v) Interest due and payable on principal amount unpaid as at the year end - 0.09
vi) Totalamount of interest accrued and unpaidas at yearend 0.32 0.30
vii) Further interest remaining due and payable for earlier years 0.30 0.21
Also Refer Notes 1.22 and 1.23
178 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.15 CSR Expenditure:
` Crores
Parculars Year ended March 31, 2023 Year ended March 31, 2022
Gross amount required to be spent by the Company
duringtheyearasperSecon135oftheCompanies
Act, 2013 read with schedule VII (including unspent
amount of previous year, as applicable)
0.11 17.34
Amountof expenditureincurred
(i) Construcon/ acquision of anyasset - -
(ii) Ongoingprojects* 13.99 12.23
(iii) On purposes other than (i) & (ii) above**
(includes ` 0.85 crores remaining unpaid for 2023)
2.02 5.11
Totalamount of expenditureincurred 16.01 17.34
*Includesamounttobedepositedinearmarkedbank
account for designated ongoing projects as at March
31, 2022 (subsequently deposited in April 2022)
- 0.32
**Includes amount to be deposited in specic fund
as menonedin Schedule VII (relangto other than
ongoing projects) as at March 31, 2022
- 0.09
Shorall if any excluding amounts transferrable to
earmarkedbank account /Schedule VII
- -
Totalof previous yearsshorall - -
Reasonforshorall Not applicable Not applicable
Natureof CSRacvies - Educaon,
-Environmental sustainability,
-Eradicanghunger,poverty,malnutrion
andprevenvehealth care
-Educaon,
-Environmental sustainability,
-Eradicanghunger,poverty,malnutrion
andprevenvehealth care,
-COVID-19
Details of related party transacons where CSR is
entrusted to a related party
Not applicable Not applicable
Openingbalanceofearmarkedbankaccountrelang
toCSR acvies
9.59 15.51
Addionfor the year 0.32 -
Ulisaonfrom thebalance forthe year 5.65 5.92
Closing balance of earmarked bank account relang
toCSR acvies
4.26 9.59
OpeningbalanceofprovisionrelangtoCSRacvies 10.00 15.68
Addion 0.85 0.41
Ulisaon 5.71 6.09
Closingbalanceof provisionrelangtoCSRacvies 5.14 10.00
3.16 Goodwill
As at
March 31, 2023
As at
March 31, 2022
` Crores ` Crores
GrossGoodwill atthe beginning / end of theyear 449.90 449.90
Accumulatedimpairmentat the beginning /end of the year - -
Carrying amount of Goodwill 449.90 449.90
Allocaon of goodwill to cash-generang units
Pursuanttobusinesscombinaon,LightCommercialVehicledivision(LCVdivision)isidenedasa separate cashgenerangunit.Goodwill
hasbeen allocatedfor impairmenttesngpurposes to this cash-generang unit.
Cash-generang units to which goodwill is allocated are tested for impairment annually at each reporng date, or more frequently when
thereisanindicaonthattheunitmaybeimpaired.Iftherecoverableamountofthecash-generangunitislessthanthecarryingamount
of the unit, the impairment loss is allocated rst to reduce the carrying amount of any goodwill allocated to that unit. The Company has
used post tax discount rate of 17% (March 2022: 16%) and terminal growth rate of 3% (March 2022: 3%) for the purpose of impairment
tesngbasedon thenext veyearsprojectedcashows.Both pretaxand posttaxdiscountratesgivethe samerecoverableamount.The
Companybelievesthat anyreasonablefurther changein the keyassumponson which recoverableamountis based, wouldnot causethe
carryingamount toexceedits recoverable amount.
Also Refer Notes 1B.16 and 1C.
AnnualReport 2022-23 179
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.17 Financial Raos
Raos FY 2022-2023 FY 2021-2022 % of Change
Debtequity rao 0.38 0.49 -22%
Debtservicecoveragerao 3.51 3.58 -2%
Currentrao 1.05 0.99 6%
Tradereceivableturnoverrao 10.10 7.32 38%
Inventoryturnover rao 11.48 7.95 44%
Tradepayableturnoverrao 4.65 3.18 46%
Netcapital turnoverrao 151.30 (48.22) -414%
Return on capital employed (%) 20.45% 2.51% 715%
Return on equity (%) 17.51% 7.57% 131%
Netprot margin% 3.82% 2.50% 53%
TheCompany earns areturn oninvestmentrangingfrom 3%to 7.7% p.a onxeddeposit and mutual funds.
The reason for change in raos by more than 25% is mainly due to higher volumes and protability achieved during year ended
March 31, 2023 in comparison with year ended March 31, 2022.
Raos Numerator Denominator
Debtequity rao(in mes) Grosstotalborrowings(beforededucngun-amorsed
loanraising expense)
Equityshare capital+ Otherequity
Debt service coverage rao (in
mes)
Prot / (loss) before exceponal items and tax +
Financecosts+Depreciaonandamorsaonexpense
–Tax expense
Interest paid + Lease payments + Principal
repayments for long term borrowings
Currentrao(in mes) Current assets (excluding Asset classied as held for
sale)
Current liabilies (excluding liabilies
directlyassociated with assets classied as
held for sale)
Trade receivable turnover rao (in
mes)
Revenuefrom operaons Average trade receivable
Inventoryturnover rao(inmes) (Cost of materials and services consumed + Purchases
of stock-in-trade + Changes in inventories of nished
goods,stock-in-tradeand work-in-progress)
Average inventory
Trade payable turnover rao (in
mes)
Purchases + other expenses - service and product
warranes
Average trade payable
Netcapitalturnoverrao(inmes) Revenuefromoperaons Average Working capital
Return on capital employed (%) Prot / (Loss) before exceponal items and tax,
Financecosts and Otherincome
(Equity share capital + Other equity)
- Goodwill - Other intangible assets -
Intangible asset under development +
Deferred tax Liabilies (net) + Gross
Borrowings
Return on equity (%) Prot /(Loss) aertax Average total equity
Netprot margin(%) Prot/ (Loss) aertax Revenue from operaons
3.18 The Companydoesnot haveanytransaconswith strucko companiesunder CompaniesAct, 2013or Companies Act,1956, duringthe year.
3.19 TheCompanyhasnotadvancedor loanedor invested fundstoanyother personorenes,including foreign enes(Intermediaries)with
the understanding that the Intermediary shall:
a. directlyor indirectlylend orinvestin otherpersons orenes idenedin anymanner whatsoeverbyor on behalfof the Company
(UlmateBeneciaries)or
b. provideanyguarantee,securityor the liketo oron behalf of the ulmatebeneciaries
The Company has not received any fund from any person or enty, including foreign enes (Funding Party) with the understanding
(whetherrecordedin wring or otherwise)that the Companyshall:
a. directly or indirectly lend or investin other persons or enes idened in any manner whatsoeverby or on behalf of the Funding
Party(UlmateBeneciaries) or
b. provideanyguarantee,securityor the likeon behalf ofthe ulmate beneciaries.
180 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.20 No proceedings have been iniated on or are pending against the Company for holding benami property under the Benami Transacons
(Prohibion)Act, 1988 (45of 1988) and Rules made thereunder.
3.21 TheCompanyhas complied with thenumber of layersprescribed under theCompanies Act.
3.22 Thereis no income surrenderedor disclosed as income during the currentor previous year in the tax assessments under the Income Tax
Act, 1961, that has not been recorded in the books of account.
3.23 TheCompanyhas not tradedor investedin crypto currencyor virtual currencyduring the currentor previousyear.
3.24 The Code on Social Security, 2020 (‘Code’) relang to employee benets during employment and post-employment benets received
Presidenal assent in September 2020. The Code has been published in the Gazee of India. However, the date on which the certain
provisions of the Code will come into eect and the rules thereunder has not been noed. The Company will assess the impact of the
Codewhen it comes intoeectand will record anyrelatedimpact in the period theCode becomes eecve.
3.25 Impairment loss reversal in Optare PLC
The Companyholds91.63% equitystakein OptarePlcand hasinvested` 931.58croresll March31,2022. OptarePlchas around98.90%
stakeinSwitchMobilityLimited,UKandSwitchMobilityLimited,UKinturnholds100%stakeinSwitchAutomoveMobilityLimited(India),
withfocusonmanufactureandsaleofelectriccommercialvehiclesglobally.TillMarch31,2021,theCompanyhasrecognisedanimpairment
of ` 781.19 Croresagainstthe equity investmentmade in OptarePlc.
As at March 31, 2022, the Company idened certain triggers for reversal of the previously recorded impairment based on both external
and internal indicators.
The keydrivers forthis improvedoutlook include:
- Improvedmarketcondions especially on accountof growingdemand foradopon of electric vehicles
- Productposioning in marketswhereit did not haveapresence earlier
- Global Sourcingand Costreducon iniaves
- Restructuringof operaons
Considering factors above, the recoverable amount has been determined using fair value less costs of disposal which is based on recent
equity infusion by an external investor in Switch Mobility Limited, UK at a valuaon of approximately$ 1.6 Bn and the interest shown by
potenalinvestors in SwitchMobility Limited, UK which indicatesthat the fair value of the investment is signicantly higher than the cost
of investment in the books.
The fair value of investment determined is also supported by a report obtained from an independent valuer. The fair value less cost of
disposal has been determined using a discounted cash ow model, which requires the use of assumpons. The valuaon is considered to
be Level 3 in the fair value hierarchy. The calculaons include cash ow projecons based on nancial budgets for the next nine years,
approved by the Board. Cashows beyond the nine years period are extrapolated using the esmated growth rate of 1.5% and post-tax
discount rate of 15% has been used. Other key assumpons include revenue growth rate and EBITDA margins. The management believes
thatany reasonable further changein the keyassumpons (if revenueand EBITDA changes by 5% - 10%) on which recoverableamount is
based,wouldnotcausethecarryingamounttoexceeditsrecoverableamount.Thefairvaluerangeobtainedbydiscountedcashowmodel
isalso corroborated by the fairvalueof similar companies listedin global stockexchanges.
Based on the above the Company has reversed the impairment of ` 781.19 crores and ` 33.26 crores of provisions for obligaons in the
previousnancial year.
3.26 TheCompanyhas not enteredintoanyscheme of arrangementwhich hasan accounng impacton currentor previous nancialyear.
AnnualReport 2022-23 181
NOTES ANNEXED TO AND FORMING PART OF THE
STANDALONE FINANCIAL STATEMENTS
3.27 Thegures forthe previousyear havebeen reclassied/ regroupedwherevernecessaryincluding for amendmentsrelang toSchedule III
ofthe Companies Act, 2013 forbeerunderstandingand comparability.
For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
Dheeraj G Hinduja
ExecuveChairman
DIN: 00133410
Shenu Agarwal
Managing Director and
ChiefExecuveOcer
DIN : 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
182 Ashok Leyland Limited
INDEPENDENT AUDITORS’ REPORT
Consolidated
To the Members of Ashok Leyland Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
1. We have audited the accompanying consolidated nancial
statements of Ashok Leyland Limited (hereinaer referred
to as the “Holding Company”) and its subsidiaries (the
Holding Company and its subsidiaries together referred to as
“the Group”), its associate companies and joint ventures
(ReferNote3.1totheaachedconsolidatednancialstatements),
which comprise the consolidated Balance Sheet as at March 31,
2023,andtheconsolidatedStatementofProtandLoss(including
Other Comprehensive Income), the consolidated Statement of
Changes in Equity and the consolidated Statement of Cash Flows
forthe year then ended, and notesto the consolidatednancial
statements, including a summary of signicant accounng
policies and other explanatory informaon (hereinaer referred
toas “the consolidatednancial statements”).
2. In our opinion and to the best of our informaonand according
to the explanaons given to us, the aforesaid consolidated
nancial statements give the informaon required by the
Companies Act, 2013 (“the Act”) in the manner so required
and give a true and fair view in conformity with the accounng
principles generally accepted in India, of the consolidated state of
aairs of the Group, its associate companies and joint ventures
as at March 31, 2023, of consolidated total comprehensive
income (comprising of prot and other comprehensive income),
consolidatedchangesinequityanditsconsolidatedcashowsfor
the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on
Auding (SAs) specied under Secon 143(10) of the Act. Our
responsibilies under those Standards are further described in
the “Auditor’s Responsibilies for the Audit of the Consolidated
FinancialStatements”seconofour report.Weareindependent
of the Group, its associate companies and joint ventures in
accordance with the ethical requirements that are relevant to
our audit of the consolidated nancial statements in India in
terms of the Code of Ethics issued by the Instute of Chartered
Accountants of India and the relevant provisions of the Act, and
we have fullled our other ethical responsibilies in accordance
with these requirements. We believe that the audit evidence
we have obtained and the audit evidence obtained by the other
auditors in terms of their reports referred to in sub-paragraph 16
of the Other Maers secon below, other than the unaudited
nancialinformaonasceredbythemanagementandreferred
to in sub-paragraph 17 of the Other Maers secon below, is
sucientand appropriatetoprovide abasis for ouropinion.
4. Key audit maers are those maers that, in our professional
judgment, were of most signicance in our audit of the
consolidated nancial statements of the current period. These
maers were addressed in the context of our audit of the
consolidatednancialstatements asa whole,and in formingour
opinion thereon, and we do not provide a separate opinion on
thesemaers.
a. Fair value of investments in other equity and in preference instruments of the Holding Company
(Refer to Note 1B.19 and Note 1C to the consolidated
nancial statements regarding the recognion, valuaon
and disclosure methods of equity instruments in others’ and
‘Crical accounng judgements and key sources of esmaon
uncertainty’ respecvely)
In the consolidated nancial statements of the Group,
Investment in other equity and preference share instruments
by the Holding Company are `174.79 croresand ` 6.93 crores
respecvely, carried at fair value, and where no listed price in
anacve marketis available.
Thevaluaonoftheseotherequityinstrumentsandpreference
shareinvestmentsarea keyaudit maeras the determinaon
of fair value involves signicant managementjudgement as no
acvemarket,observableinputs are available.
The key inputs and judgements involved in the model for fair
value assessment of investments include future cash ows of
the respecve enes, the discount rate and the long-term
growth rates used.
As part of our audit, our procedures included the following:
● Weobtainedan understanding and assessedthe design,implementaon
and operang eecveness of management’s relevant internal controls
to idenfy whether there are any indicators of impairment and where
such indicators exists, the method by which the recoverable amount is
determinedbythemanagement.Specically,wefocusedonmanagement
controls to conclude on the appropriateness of future cash ows
(including terminal cash ow) and key assumpons used in arriving at
the recoverable amount and fair value, as applicable.
● Weevaluatedthe following:
– Terminal growth rate by comparing with the long-term outlook
based on the relevant macroeconomic outlook for the geography
inwhich the enes areoperang.
– Board approved budgets considering growth and other cash ow
projeconsprovidedbythemanagementandcomparedthesewith
the actual results of earlier years to assess the appropriateness of
forecast.
– The competence, capabilies and objecvity of the management’s
expertinvolvedin thevaluaon process.
● We along with the auditors’ experts evaluated the appropriateness of
the measurement model and reasonableness of key assumpons like
terminal growth rate, discount rate.
● We performedsensivity testson the model by analysing the impact of
using other possible growth rates and discount rates within a reasonable
and foreseeable range.
● Weevaluatedthe adequacy of the disclosuresmade in the consolidated
nancialstatements.
Based on the above procedures performed, we did not idenfy any signicant
excepons in the management’s assessment in relaon to the fair value of
investment in other equity instruments and that of fair value of investment in
preference instruments of the Holding Company and the related disclosures
thereof.
Annual Report 2022-23 183
INDEPENDENT AUDITORS’ REPORT
(Refer to Note 1B.18, Note 1.23, Note 1.30 and Note 1C to
the consolidated nancial statements regarding the ‘Provisions
- Warranes’ for recognion and valuaon methods, Non-
Current Provisions and Current Provisions respecvely, and
‘Crical accounng judgements and key sources of esmaon
uncertainty- Provisionforproduct warranty’ respecvely)
In the consolidated nancial statements, the Group has
recognised a provision of ` 652.32 crores for warranty
obligaons pertaining to Holding Company as on March 31,
2023.
We determined this maer as key audit maer since the
product warranty obligaons and esmaons thereof are
determined by management using a model which incorporates
historicalinformaononthetypeofproduct,nature,frequency
and average cost of warranty claims, the esmates regarding
possible future incidences of product failures and discount rate.
Changesinesmatedfrequencyandamountoffuturewarranty
claimscan materiallyaectwarrantyexpenses.
As part of our audit, our procedures included the following:
● Weobtainedan understanding and assessedthe design,implementaon
and operang eecveness of management’s relevant internal controls
with regards to the appropriateness of recording of warranty claims,
provisioning of warranty, and the periodic review of provision created.
● We veried the appropriateness of the process and controls around IT
systems as established by the management. Specically, we focused on
controls around periodic review of warranty provision and that of the
appropriateness and adequacy of provision.
● We evaluated the model used by the management for provisioning of
warranty to evaluate the appropriateness of the methodology followed
bythemanagementandthemathemacalaccuracyofthemodel.Tothis
eect,we evaluatedthefollowing:
– the inputs to the model on a sample basis
– esmaon of expected paern of future claims and esmated
replacement cost
– computaonof provisionfor warrantycosts.
– computaon for determining the present value in the case of
warranty for periods exceeding one year.
– management’s esmaon process by performing a look-back
analysis for warranty costs accruals made in prior year.
● Weevaluatedthe adequacy of the disclosuresmade in the consolidated
nancialstatements.
Based on the above audit procedures performed, we did not note any material
excepons with regard to the management assessment of provision for
warranty costs and the related disclosures thereof.
(RefertoNote1B.4,Note1CandNote3.14Dtotheconsolidated
nancial statements regarding the recognion, valuaon
and disclosure methods of ‘Goodwill’, ‘Crical accounng
judgements and key sources of esmaon uncertainty’ and
‘Goodwill’respecvely)
IntheconsolidatednancialstatementsoftheGroup,thegross
carrying value of goodwill (excluding goodwill forming part of
LCV business) is ` 1,342.19 crores against which a cumulave
provision for impairment of ` 616.98 crores is carried in the
books as at March 31, 2023.
As per Ind AS 36, Impairment of Assets, the Holding Company
is required to assess annually the impairment of goodwill
acquiredin business combinaons.
The key inputs and judgements involved in the model for
impairment assessment of goodwill include future cash ows
of the respecve enes, the discount rate and the long-term
growth rates used.
As part of our audit, our procedures included the following:
● Weobtainedan understanding and assessedthe design,implementaon
and operang eecveness of management’s relevant internal controls
to idenfy whether there are any indicators of impairment and where
such indicators exist, the method by which the recoverable amount is
determinedbythemanagement.Specically,wefocusedonmanagement
controls to conclude on the appropriateness of future cash ows
(including terminal cash ow) and key assumpons used in arriving at
the recoverable amount and fair value, as applicable.
● Weevaluatedthe following:
– terminal growth rate, by comparing with the long-term outlook
based on the relevant macroeconomic outlook for the geography
inwhich the respecveenes areoperang.
– budgets, considering growth and other cash ow projecons
provided by the management and compared these with the actual
results of earlier years to assess the appropriateness of forecast.
– the competence, capabilies and objecvity of the management’s
expertinvolvedin thevaluaon process.
● We, along with the auditors’ experts, evaluated the appropriateness of
the measurement model and reasonableness of key assumpons like
terminal growth rate and discount rate.
● We performedsensivity testson the model by analysing the impact of
using other possible growth rates and discount rates within a reasonable
and foreseeable range.
● Weevaluatedthe adequacy of the disclosuresmade in the consolidated
nancialstatements.
Based on the aboveproceduresperformed, wedid not idenfy any signicant
exceponsinthemanagement’sassessmentinrelaontothecarryingvalueof
goodwill (excluding goodwill forming part of LCV business) in the Consolidated
Financial statements and the related disclosures thereof.
AlsorefertotheKeyAuditMaersincludedbyusinourauditreportofevendateontheStandalonenancialstatementsoftheHoldingCompany.
184 Ashok Leyland Limited
INDEPENDENT AUDITORS’ REPORT
5. The following Key Audit Maers were included in the audit report dated May 18, 2023, containing an unmodied audit opinion on the
consolidatednancialinformaonof Hinduja LeylandFinance Limited, asubsidiary of theHolding Company issuedby an independentrm
of Chartered Accountants reproduced by us as under:
As at 31 March 2023, the Company reported total gross loans of
`23,064.71crores(2022:` 18,837.03 crores) and expected credit loss
provisions of ` 635.99 crores (2022: ` 773.88 crores).
Ind AS 109, Financial Instruments (‘Ind AS 109’) requires the Company
to provide for impairment of its nancial assets using the expected
credit loss (‘ECL’) approach involving an esmaon of probability of
loss on the nancial assets, considering reasonable and supportable
informaon about past events, current condions and forecasts of
future economic condions which could impact the credit quality of
theCompany’s nancial assets.
Expected credit loss cannot be measured precisely but can only be
esmatedthrough use ofstascs.The esmaonof impairmentloss
allowance on nancial instruments involvessignicant judgement and
esmates and applying appropriate measurement principles, including
addionalconsideraonsonaccountofReserveBankofIndiaguidelines
in relaon to COVID-19 regulatory package and restructuring. The
Company has involved an external expert to measure probability of
default(PD),loss given default(LGD)in accordancewith Ind AS 109.
The Company measures 12-month ECL for Stage 1 loan assets
and at lifeme ECL for Stage 2 and Stage 3 loan assets. Signicant
managementjudgment and assumpons involvedin measuring ECL is
required with respect to:
● Segmentaon of loan book in buckets based on common risk
characteriscs
● Stagingofloansandinparculardeterminingthecriteria,which
includesqualitavefactorsforidenfyingasignicantincreasein
credit risk (i.e. Stage 2) and credit-impaired (i.e.Stage-3)
● factoring in future macro-economic and industry specic
esmatesand forecasts
● past experience and forecast data on customer behaviour on
repayments
● varied stascal modelling techniques to determine probability
of default, loss given default and exposure at default basis the
default history of loans, subsequent recoveries made and other
relevant factors using probability-weighted scenarios.
● eect of discounng the cash ows by esmang the ming of
expectedcreditshorallsassociated with thedefaults
Impairment losses in addion to the model-driven ECL results are
recorded as overlays by management, to address known impairment
model limitaons or emerging trendsas well as risks not capturedby
models. As at 31 March 2023, overlays represent approximately 19% of
theECLbalances. Theseadjustmentsrequiredsignicantmanagement
judgement.
Determining ECL on the nancial assets also requires compliance
with key disclosure requirements as prescribed under the standards
and by the Reserve Bank of India, to explain the key judgements and
assumponsmade by the managementin the measurement.
Considering the signicance of the above maer to the nancial
statements and since the maer required our signicant aenon to
test the calculaon of expected credit losses, we have idened this
asa keyaudit maerforcurrentyear audit.
Our audit focused on assessing the appropriateness of management’s
judgment and esmates used in the expected credit losses through
procedures which included, but were not limited to, the following:
– Examined the policy approved by the Board of Directors
(‘Board’) with respect to process and procedures for assessing
and measuring credit risk on the lending exposures of the
Company and evaluated it appropriateness in accordance with
the requirements of Ind AS 109.
– Evaluated the design and tested the operang eecveness
of controls across the process relevant to ECL measurement,
including around the judgements and esmates made by the
management.These controls,amongst others, included controls
overtheallocaonofassetsintostagesalongwithmanagement’s
monitoring of and completeness of the underlying data used in
the models, credit monitoring, passing of journal entries and
preparing disclosures.
– With respect to management expert involved for Company’s
modelling approach, we obtained the deliverables of the expert
submied to the management and assessed the professional
competenceand objecvityof such managementexpert.
– TestedthecompletenessofloansincludedintheECLcalculaons
as of 31 March 2023 by reconciling such data with the balances
as per loan book register.
– Tested,onasamplebasis,thedatausedinthePDandLGDmodel
for ECL calculaon by reconciling it to the source informaon
systems of the Company. Further, tested classicaon of assets
into stage 1, 2 and 3 categories, on a sample basis, to verify that
these were allocated to the appropriate stage.
– Obtained an understanding of the modelling techniques adopted
by the Company including the key inputs and assumpons.
Challenged the management on post model adjustments,
considering the size and complexity of management overlays, in
order to assess the reasonableness of the adjustments.
– Performed an overall assessment of the ECL provision levels
at each stage, including management’s assessment and
provision on account of the Company’s porolio as well as the
macroeconomic environment.
– On a test check basis, ensured compliance with RBI Master
Circular on ‘Prudenal Norms on Income Recognion, Asset
Classicaon and Provisioning pertaining to advances’ (‘IRACP’)
read with RBI circular on ‘Prudenal norms on Income
Recognion, Asset Classicaon and Provisioning pertaining to
Advances – Claricaons’ dated 12 November 2021 along with
RBI nocaon RBI/2021-2022/158 dated 15 February 2022, in
relaon to idencaon, upgradaon and provisioning of non-
performing assets (NPAs) and ensured that the Company has
considered NPAs as credit impaired loans.
– Obtained wrien representaons from the management in
relaon to appropriateness of such ECL methodology and
reasonablenessof the judgementsand assumpons used.
– Assessed the appropriateness and adequacy of the related
presentaon and disclosures in the accompanying nancial
statements in accordance with the applicable accounng
standards and relatedRBI circularsand ResoluonFramework.
Annual Report 2022-23 185
INDEPENDENT AUDITORS’ REPORT
The Company has loans amounng to ` 14,914.87 crores as at
31 March 2023 that are carried and measured at fair value through
other comprehensive income (FVOCI) in accordance with Ind AS 109.
TheclassicaonofsuchloansatFVTOCIisdependentonthebusiness
model adopted by the Company to manage such nancial assets in
order to generate cash ows. The management has determined
that their business model of aforesaid loans is to collect contractual
cash ows (solely payments of principal and interest on the amount
outstanding) and also to sell such nancial assets, and hence, such
loans areclassied at FVTOCIin accordancewith the principlesof Ind
AS 109.
Inmeasuringtheseloans,valuaonmethodsareusedbasedoninputs
that are not directly observable from market informaon and certain
other unobservable inputs. The management has used the services
of an independent professional valuer for arriving at the fair value of
aforesaid loan assets. Such fair value is derived using discounted cash
ow models wherein the key assumpons include discount rate and
adjustment for credit risk including default risk.
Giventhesubjecvity involvedinascertaining thebusinessmodel and
the fair valuaon of the aforesaid loans, relave signicance of these
loans to the nancial statements and the nature and extent of audit
proceduresinvolved,we determinedthis to bea keyaudit maer
Our audit procedures in relaon to nancial assets measured at
FVTOCIincluded, butwere notlimited, tothe following:
– Obtained an understanding of the ‘Business Model Policy
Note’ approved by the Board of Directors of the Company, and
evaluatedwhethertheidenedloanporoliowouldsasfythe
condionsof Ind AS 109 formeasurementatFVTOCI.
– Assessed the design and tested the operang eecveness of
managements’ key internal controls over inputs used in the
valuaonmodel.
– Obtained the valuaon report of the management’s valuaon
expert involved and assessed the expert’s competence and
objecvityin performingthe valuaonof these loans.
– With the support of our valuaon specialists, assessed whether
thevaluaonmethodologyadoptedbythemanagement’sexpert
is appropriate and tested the reasonableness of the underlying
assumpons used such as discount rates to esmate the fair
value of the said loans by performing independent sensivity
analysis. Also, tested the completeness of source data and
arithmecalaccuracyof the managementworking.
– Assessed the appropriateness and adequacy of disclosures made
in the nancial statements with respect to Company’s exposure
tonancialinstrumentvaluaonriskas perthe requirements of
theIndian Accounng standards.
– Obtained wrien representaons from the management in
relaon to reasonableness of the assumpons and judgements
usedin the valuaonof these loans.
The Company is highly dependent on its informaon technology (IT)
systems for carrying on its operaons which require large volume of
transacons to be processed in numerous locaons on a daily basis.
The nancial accounng system of the Company is integrated with
several other modules including Loan Management and Originang
modulesand other workows.
As a result, there is a high degree of reliance and dependency on
such IT systems for the nancial reporng process of the Company.
AppropriateITgeneralcontrolsandapplicaoncontrolsarerequiredto
ensurethatsuch IT systems areable to processthe data,asrequired,
completely, accuratelyand consistentlyforreliablenancial reporng.
Theaccuracyandreliability ofthe nancialreporngprocessdepends
onthe IT systemsand the relatedcontrolenvironment,including:
● IT general controls over user access management and change
management across applicaons, networks, database, and
operangsystems;
● IT applicaoncontrols.
Due tothe pervasivenature and importanceof the roleof IT systems
andrelatedcontrolenvironmentonthe Company’s nancialreporng
process, we have idened tesng of such IT systems and related
controlenvironmentas a key audit maerfor thecurrentyear audit.
In our audit, our focus was on user access management, change
management, segregaon of dues, system reconciliaon controls
and system applicaon controls over key nancial accounng and
reporngsystems.Weperformedarangeofauditprocedureswiththe
involvementof ourIT specialists, whichincluded but werenot limited
to, the following:
● Obtained an understanding of the Company’s IT related control
environment, IT applicaons, databases and IT Infrastructure.
Based on our understanding, we have evaluated and tested
relevant IT general controls and IT applicaon controls on the
systems idened as relevant for our audit of the nancial
statements.
● On such in-scope IT systems, we have tested key IT general
controls with respect to the following domains:
a. User access management, which includes user access
provisioning, de-provisioning, access review, password
policies, sensive access rights and segregaon of dues
to ensure that privileged access to applicaons, operang
systemanddatabasesintheproduconenvironmentwere
granted only to authorized personnel.
b. Program change management, which includes controls on
moving program changes to producon environment by
authorisedpersonnelasperdenedpolicyandprocedures
alongwith adequate segregaon of environment.
Other areas that were assessed under the IT control
environment included backup management, incident
management, batch processing and interfaces.
186 Ashok Leyland Limited
INDEPENDENT AUDITORS’ REPORT
● Reviewed the report of Informaon System Audit carried out
in the previous year by an independent rm of Chartered
Accountants pertaining to IT systems general controls including
accessrightsoverapplicaons,operangsystemsanddatabases
relieduponfornancialrepornganddiscussedthedeciencies
with the management along with corresponding migang
aconsundertaken.
● Evaluated the design and tested the operang eecveness
of key automated controls within various business processes,
including tesng of relevant system logic and corresponding
automated calculaons and process for automated accounng
entries,asapplicable.Wheredeciencieswereidened,tested
compensang controls and/or performed addional substanve
audit procedures as required to migate any risk of material
misstatement with respect to related nancial statement line
item.
● Obtainedwrienrepresentaonsfrommanagementonwhether
IT general controls and automated IT controls are designed and
wereoperangeecvely during the year.
6. The following Key Audit Maers were included in the audit report dated April 21, 2023, containing an unmodied audit opinion on
the nancial informaon of Lanka Ashok Leyland Plc, an associate of the Holding Company issued by an independent rm of Chartered
Accountants reproduced by us as under:
a. Carrying value of Inventories
Changes in economic senment or consumer preferences, demands
and the introducon of newer models with the latest design and
technologies could result in inventories in hand no longer being sought
aer or being sold at a discount below their cost. Esmang the
future demand and the related selling prices of vehicles, generators
and spare parts are inherently subjecve and uncertain because it
involves management esmang the extent of markdown of selling
prices necessary to sell the older or slow-moving models in the period
subsequenttothereporngdate.Weidenedvaluaonofinventories
as key audit maer because of the signicant judgment exercised by
management in determining appropriate carrying value in inventories.
Our audit procedures included:
● Evaluang whether the inventory provisions at the end of the
reporng period were determined in a manner consistent
with the Company’s inventory provision policy by recalculang
the inventory provisions based on the percentages and other
parameters in the Company’s inventory provision policy.
● Assessing, on a sample basis, whether items in the inventory
ageing report were classied within the appropriate ageing
category by comparing individual items with the underlying
documentaon which included purchase invoices and goods
receipt notes.
● Enquiring of management about any expected changes in
plans for markdowns or disposals of slow moving or obsolete
inventories and comparing their representaons with actual
transacons subsequent to the reporng date and assumpons
adopted in determining the inventory provisions.
● Comparing, on a sample basis, the carrying value of inventories
withsales prices subsequent tothe end of thereporng period.
● Aending inventory counts as at the year end to ensure the
existence and condion of inventories as atthe reporng date.
b. Recoverability of rental and trade receivables
AssessingtheallowanceforimpairmentofRentalandTradereceivables
remains one of the signicant judgements made by management
parcularlyin lightofthe uncertaineconomicoutlook inSri Lankadue
to the ongoing economic crises within the country and the impact of
GlobalCOVID-19outbreak.Weidenedassessingtherecoverabilityof
tradedebtorsasakeyauditmaerbecauseofthesignicanceoftrade
debtorsto the nancial statements as a whole and the assessment of
therecoverabilityoftradedebtorsisinherentlysubjecveand requires
signicantmanagementjudgementinaccordancewithSLFRS09,which
increasesthe risk of erroror potenalmanagementbias.
Management provisioning methodology is based on the Expected Credit
Loss (ECL) model as required under SLFRS 9 “ Financial Instruments”.
Our audit procedures included:
● Obtaining an understanding of and assessing the design and
implementaon of management’s key internal controls relang
to credit control, debt collecons and making allowances for
doubuldebtors.
● Reviewing the appropriateness of the provisioning methodology
used by management in determining the impairment allowances
against the requirements of SLFRS 09.
● Recompung management’s calculaon for the impairment
allowance determined based on expected credit loss method.
Annual Report 2022-23 187
INDEPENDENT AUDITORS’ REPORT
● Obtaining an understanding of the key parameters and
assumpons of the expected credit loss model adopted by the
management, including historical default data and management’s
esmatedloss rates.
● Assessing the reasonableness of management’s loss allowance
esmate by examining the informaon used by management
to form such judgments, including tesng the accuracy of the
historical default data and evaluang whether the historical loss
rates are appropriately adjusted based on current economic
condionsand forwardlooking informaon.
● Challenging management’s assumpons for the expected
cashows and the ming of the expected cashows in the
scenario-based probability weighted impairment assessment of
individually signicantcustomers.
● Assessing,onasamplebasis,whetheritemsinthedebtorsageing
report were classied within the appropriate ageing category by
comparing individual items in the report with the underlying
documentaonsuchas sales invoices.
● Requesngforconrmaonsfrommajordebtorsand/orverifying
subsequentselementsas an alternaveprocedure.
7. The Holding Company’s Board of Directors is responsible for
the other informaon. The other informaon comprises the
informaon included in the Annual report (i.e Board’s report,
Report on Corporate Governance and Management Discussion
and Analysis Report) but does not include the consolidated
nancialstatementsand ourauditors’ reportthereon.
Our opinion on the consolidated nancial statements does not
coverthe other informaon and we do not express any formof
assurance conclusion thereon.
In connecon with our audit of the consolidated nancial
statements, our responsibility is to read the other informaon
and, in doing so, consider whether the other informaon is
materiallyinconsistentwiththeconsolidatednancialstatements
or our knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we have
performed and the reports of the other auditors as furnished
to us (Refer paragraph 16 below), we conclude that there is a
materialmisstatementof thisotherinformaon,wearerequired
to report that fact.
We have nothing to report in this regard.
for the Consolidated Financial Statements
8. The Holding Company’s Board of Directors is responsible forthe
preparaon and presentaon of these consolidated nancial
statements in term of the requirements of the Act that give a true
and fairview of the consolidated nancial posion, consolidated
nancial performance and consolidated cash ows, and changes
in equity of the Group including its associate companies and joint
ventures in accordance with the accounng principles generally
accepted in India, including the Accounng Standards specied
under Secon 133 of the Act. The respecve Board of Directors
of the companies included in the Group and of its associate
companies and joint ventures are responsible for maintenance of
adequateaccounngrecordsinaccordancewiththeprovisionsof
the Act for safeguarding the assets of the Group and its associates
and joint ventures and for prevenng and detecng frauds and
other irregularies; selecon and applicaon of appropriate
accounng policies; making judgments and esmates that are
reasonable and prudent; and the design, implementaon and
maintenance of adequate internal nancial controls, that were
operang eecvely for ensuring accuracy and completeness
of the accounng records, relevant to the preparaon and
presentaon of the consolidated nancial statements that give
a true and fair view and are free from material misstatement,
whether due to fraud or error, which have been used for the
purpose of preparaon of the consolidated nancial statements
bythe Directorsof theHolding Company,as aforesaid.
9. Inpreparingtheconsolidatednancialstatements,therespecve
Board of Directors of the companies included in the Group and
of its associate companies and joint ventures are responsible for
assessing the ability of the Group and of its associate companies
and joint ventures to connueas a going concern, disclosing, as
applicable,maersrelatedto going concern and using the going
concern basis of accounng unless management either intends
toliquidatethe Groupor tocease operaons,or hasno realisc
alternavebutto do so.
10. The respecve Board of Directors of the companies included in
the Group and of its associate companies and joint ventures are
responsible for overseeing the nancial reporng process of the
Group and of its associate companies and joint ventures.
Statements
11. Ourobjecvesaretoobtainreasonableassuranceaboutwhether
the consolidated nancial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that
an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
intheaggregate,theycouldreasonablybeexpectedtoinuence
the economic decisions of users taken on the basis of these
consolidatednancial statements.
188 Ashok Leyland Limited
12. As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional scepcism
throughout the audit. We also:
● Idenfy and assess the risks of material misstatement of
theconsolidatednancialstatements,whetherduetofraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sucient
and appropriate to provide a basis for our opinion. The
risk of not detecng a material misstatement resulng
from fraud is higher than for one resulng from error, as
fraud may involve collusion, forgery, intenonal omissions,
misrepresentaons, or theoverride of internalcontrol.
● Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
Secon 143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Holding company
has adequate internal nancial controls with reference
to consolidated nancial statements in place and the
operangeecvenessof such controls.
● Evaluate the appropriateness of accounng policies used
and the reasonableness of accounng esmates and
related disclosures made by management.
● Conclude on the appropriateness of management’s use
of the going concern basis of accounng and, based
on the audit evidence obtained, whether a material
uncertaintyexistsrelated toevents or condions that may
cast signicant doubt on the ability of the Group and its
associate companies and joint ventures to connue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw aenon in our auditor’s
report to the related disclosures in the consolidated
nancial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s
report. However, future events or condions may cause
the Group and its associate companies and joint ventures
tocease to connueas agoing concern.
● Evaluate the overall presentaon, structure and content
of the consolidated nancial statements, including the
disclosures, and whether the consolidated nancial
statements represent the underlying transacons and
eventsin amanner that achievesfairpresentaon.
● Obtain sucient appropriate audit evidence regarding the
nancial informaon of the enes or business acvies
within the Group and its associate companies and joint
ventures to express an opinion on the consolidated
nancial statements. We are responsible for the direcon,
supervision and performance of the audit of the nancial
statements of such enes included in the consolidated
nancial statements of which we are the independent
auditors.Fortheotherenesincludedintheconsolidated
nancial statements, which have been audited by other
auditors, such other auditors remain responsible for the
direcon, supervision and performance of the audits
carried out by them. We remain solely responsible for our
audit opinion.
13. We communicate with those charged with governance of
the Holding Company and such other enes included in the
consolidatednancialstatementsofwhichwearetheindependent
auditorsregarding,among othermaers,the plannedscope and
ming of the audit and signicant audit ndings, including any
signicantdeciencies in internal controlthat we idenfy during
our audit.
14. Wealso provide those chargedwith governancewith a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relaonships
andothermaersthatmayreasonablybethoughttobear onour
independence, and where applicable, related safeguards.
15. From the maers communicated with those charged with
governance, we determine those maers that were of most
signicance in the audit of the consolidated nancial statements
of the current period and are therefore the key audit maers.
We describe these maers in our auditor’s report unless law or
regulaonprecludespublicdisclosureaboutthemaerorwhen,
in extremely rare circumstances, we determine that a maer
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweighthe public interestbenets of such communicaon.
16. We did not audit the consolidated nancial statements/nancial
informaonoffoursubsidiariesandnancialstatementsofseven
subsidiaries included in the consolidated nancial statements,
whose nancial statements/ nancial informaon reect total
assets of ` 35,808.18 crores and net assets of ` 5,475.39 crores
as at March 31, 2023, total revenue of ` 7,320.41 crores, total
netprot aertaxof ` 9.33 crores, total comprehensive income
(comprisingofprotandothercomprehensiveincome)of` 82.59
crores and net cash ows amounng to ` 395.37 crores for the
year ended March 31, 2023, as considered in the consolidated
nancial statements. The consolidated nancial statements also
include the Group’s shareof net protaer tax of ` 8.74 crores
and total comprehensive income (comprising of prot and other
comprehensive loss) of ` 8.72 crores for the year ended March
31, 2023 as considered in the consolidatednancial statements,
in respect of three associate companies and one joint venture,
whose nancial statements/nancial informaon havenot been
audited by us. These nancial statements/ nancial informaon
have been audited by other auditors whose reports have been
furnished to us by the Management, and our opinion on the
consolidated nancial statements insofar as it relates to the
amounts and disclosures included in respect of these subsidiaries,
joint venture and associate companies and our report in terms of
sub-secon(3)ofSecon143oftheActincludingreportonOther
Informaoninsofarasitrelatestotheaforesaidsubsidiaries,joint
ventures and associate companies, is based solely on the reports
of the other auditors.
17. We did not audit the consolidated nancial informaon of one
subsidiaryandnancialinformaonoftwosubsidiariesandthree
step down subsidiaries, whose nancial informaon reect total
assets of ` 272.89 crores and net assets of ` 20.42 crores as at
March 31, 2023, total revenue of ` 382.24 crores, total net loss
aer tax of ` 8.16 crores, total comprehensive loss (comprising
of loss and other comprehensive loss) of ` 8.35 crores and
net cash ows amounng to ` 3.19 crores for the year ended
March 31, 2023, as considered in the consolidated nancial
statements. The consolidated nancial statements also include
INDEPENDENT AUDITORS’ REPORT
Annual Report 2022-23 189
the Group’s share of net prot aer tax of ` 0.27 crores and
total comprehensive loss (comprising of prot and other
comprehensive loss) of ` 0.15 crores for the year ended March
31,2023, as consideredinthe consolidatednancial statements,
in respect of two joint ventures whose nancial informaon
have not been audited by us. These nancial informaon are
unaudited and have been furnished to us by the Management,
andour opinion on the consolidatednancial statementsinsofar
as it relates to the amounts and disclosures included in respect
of these subsidiaries and joint ventures and our report in terms
of sub-secon (3) of Secon 143 of the Act including report on
OtherInformaoninsofarasitrelatestotheaforesaidsubsidiaries
and joint ventures, is based solely on such unaudited nancial
informaon.Inouropinionandaccordingtotheinformaonand
explanaons given to us by the Management, these nancial
informaonare not materialtothe Group.
Our opinion on the consolidated nancial statements, and our
report on Other Legal and Regulatory Requirements below, is
notmodiedinrespectoftheabovemaerswith respecttoour
reliance on the work done and the reports of the other auditors
andthe nancial informaoncered bythe Management.
Report on Other Legal and Regulatory Requirements
18. As required by paragraph 3(xxi) of the Companies (Auditor’s
Report) Order, 2020 (“CARO 2020”), issued by the Central
Governmentof India in terms of sub-secon (11) of Secon 143
of the Act, we reportthat there are no qualicaons or adverse
remarks included by the respecve auditors in their CARO 2020
reports issued in respect of the standalone nancial statements
of the companies which are included in these Consolidated
Financial Statements.
19. AsrequiredbySecon143(3)oftheAct,wereport,totheextent
applicable, that:
(a) We have sought and obtained all the informaon and
explanaons which to the best of our knowledge and
belief were necessary for the purposes of our audit of the
aforesaid consolidatednancial statements.
(b) In our opinion, proper books of account as required by
law relang to preparaon of the aforesaid consolidated
nancial statements have been kept so far as it appears
from our examinaon of those books and the reports of
the other auditors.
(c) The Consolidated Balance Sheet, the Consolidated
StatementofProtandLoss(includingothercomprehensive
income), the Consolidated Statement of Changes in Equity
and the Consolidated Statement of Cash Flows dealt with
by this Report are in agreement with the relevant books
of account and records maintained for the purpose of
preparaonof the consolidatednancial statements.
(d) In our opinion, the aforesaid consolidated nancial
statementscomplywiththeAccounngStandardsspecied
underSecon 133 of the Act.
(e) On the basis of the wrien representaons received from
the directors of the Holding Company as on March 31,
2023 taken on record by the Board of Directors of the
Holding Company and the reports of the statutory auditors
of its subsidiary companies, associate companies and joint
ventures incorporated in India, none of the directors of
the Group companies, its associate companies and joint
ventures incorporated in India is disqualied as on March
31, 2023 from being appointed as a director in terms of
Secon164(2) of the Act.
(f) With respect tothe adequacy of internalnancial controls
with reference to consolidated nancial statements of the
Group, its associates and joint ventures incorporated in
Indiaandtheoperangeecvenessofsuchcontrols,refer
to our separate report in Annexure A.
(g) With respect to the other maers to be included in
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditor’s) Rules, 2014, in our
opinion and to the best of our informaon and according
tothe explanaonsgiven tous:
i. The consolidated nancial statements disclose
the impact, if any, of pending ligaons on the
consolidated nancial posion of the Group, its
associate companies and joint ventures– Refer Note
3.11to the consolidatednancial statements.
ii. The Group, its associate companies and joint
ventures were not required to recognise a provision
as at March 31, 2023 under the applicable law
or accounng standards, as it does not have any
material foreseeable losses on long-term contract
including derivave contracts.
iii. There has been no delay in transferring amounts
required to be transferred to the Investor Educaon
andProteconFundbytheHoldingCompanyandits
subsidiary companies, associate companies and joint
ventures incorporated in India during the year.
(iv) (a) The respecve Managements of the Company
and its subsidiaries, joint venture and associate
companies which are companies incorporated
in India whose nancial statements have been
audited under the Act have represented to us
and the other auditors of such subsidiaries,
joint venture and associate companies
respecvely that, to the best of their
knowledge and belief, other than as disclosed
in the notes to the accounts, no funds (which
are material either individually or in the
aggregate) have been advanced or loaned or
invested (either from borrowed funds or share
premium or any other sources or kind of funds)
by the Company or any of such subsidiaries,
joint venture and associate companies to
or in any other person or enes, including
foreign enes (“Intermediaries”), with the
understanding, whether recorded in wring or
otherwise, that the Intermediary shall, directly
or indirectly, lend or invest in other persons or
enes idened in any manner whatsoever
by or on behalf of the Company or any of
such subsidiaries, joint venture and associate
companies(“UlmateBeneciaries”)orprovide
any guarantee, security or the like on behalf of
the Ulmate Beneciaries. (Refer note 3.20 to
theConsolidated nancial statements);
INDEPENDENT AUDITORS’ REPORT
190 Ashok Leyland Limited
(b) The respecve Managements of the Company
and its subsidiaries, joint venture and associate
companies which are companies incorporated
in India whose nancial statements have been
audited under the Act have represented to us
and the other auditors of such subsidiaries, joint
venture and associate companies respecvely
that, to the best of their knowledge and
belief, other than as disclosed in the notes
to the accounts, no funds (which are material
either individually or in the aggregate) have
been received by the Company or any of
such subsidiaries, joint ventures and associate
companies from any person(s) or enty(ies),
including foreign enes (“Funding Pares”),
with the understanding, whether recorded in
wring or otherwise, thatthe Company or any
of such subsidiaries, joint venture and associate
companies shall, directly or indirectly, lend or
invest in other persons or enes idened
in any manner whatsoever by or on behalf of
the Funding Party (“Ulmate Beneciaries”) or
provide any guarantee, security or the like on
behalfoftheUlmateBeneciaries.(Refernote
3.20to the Consolidatednancial statements);
(c) Based on the audit procedures, that has been
considered reasonable and appropriate in the
circumstances, performed by us and those
performed by the auditors of the subsidiaries,
joint venture and associate companies which
are companies incorporated in India whose
nancial statements have been audited under
the Act, nothing has come to our or other
auditor’snocethathascausedusortheother
auditors to believe that the representaons
under sub-clause (i) and (ii) of Rule 11(e)
contain any material misstatement.
(v) The dividend declared and paid during the year by
the Holding Company, associate companies and joint
ventures,asapplicable,is incompliancewithSecon
123 of the Act.
(vi) As proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 (as amended), which provides for books
of account to have the feature of audit trail, edit
log and related maers in the accounng soware
used by the Group, associate companies and joint
ventures, is applicable to the Group, associate
companies and joint ventures only with eect from
nancial year beginning April 1, 2023, the reporng
under clause (g) of Rule 11 of the Companies (Audit
and Auditors) Rules, 2014 (as amended), is currently
not applicable.
20. The Group, its associate companies and joint ventures, as
applicable have paid / provided for managerial remuneraon
in accordance with the requisite approvals mandated by the
provisionsof Secon 197read with Schedule Vto the Act.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraonNumber:304026E/E-300009
A.J. Shaikh
Partner
Membership Number : 203637
UDIN: 23203637BGXOZG8407
Place : Chennai
Date : May23, 2023
INDEPENDENT AUDITORS’ REPORT
Annual Report 2022-23 191
of the Act
1. In conjuncon with our audit of the consolidated nancial
statements of the Company as of and for the year ended
March 31, 2023, we have audited the internal nancial controls
with reference to nancial statements of Ashok Leyland Limited
(hereinaer referred to as “the Holding Company”) and its
subsidiary companies, its associate companies and joint venture
companies, which are companies incorporated in India, as of that
date.Reporngunderclause (i)of sub secon3 ofSecon 143 of
theActinrespectoftheadequacyoftheinternalnancialcontrols
with reference to nancial statements is not applicable to a joint
venture company incorporated in India namely Ashok Leyland John
DeereConstrucon EquipmentCompanyPrivateLimited,pursuant
toMCA nocaonGSR 583(E) dated13 June 2017.
Management’s Responsibility for Internal Financial Controls
2. The respecve Board of Directors of the Holding Company, its
subsidiary companies, its associate companies and joint venture
companies, to whom reporng under clause (i) of sub secon
3 of Secon 143 of the Act in respect of the adequacy of the
internal nancial controls with reference to nancial statements
is applicable, which are companies incorporated in India, are
responsible for establishing and maintaining internal nancial
controls based on internal control over nancial reporng
criteria established by the Company considering the essenal
components of internal control stated in the Guidance Note
on Audit of Internal Financial Controls Over Financial Reporng
(“the Guidance Note”) issued by the Instute of Chartered
Accountants of India (“ICAI”). These responsibilies include the
design, implementaon and maintenance of adequate internal
nancialcontrolsthatwereoperang eecvely forensuringthe
orderlyandecientconductofitsbusiness,includingadherence
to the respecve company’s policies, the safeguarding of its
assets, the prevenon and detecon of frauds and errors, the
accuracy and completeness of the accounng records, and the
mely preparaon of reliable nancial informaon, as required
under the Act.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on the Company’s
internal nancial controls with reference to nancial statements
based on our audit. We conducted our audit in accordance
with the Guidance Note issued by the ICAI and the Standards
on Auding deemed to be prescribed under Secon 143(10) of
the Companies Act, 2013, to the extent applicable to an audit
of internal nancial controls, both applicable to an audit of
internal nancial controls and both issued by the ICAI. Those
Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal nancial
controls with reference to nancial statements was established
and maintained and if such controls operated eecvely in all
material respects.
4. Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal nancial controls
systemwithreferencetonancialstatementsandtheiroperang
eecveness.Ourauditofinternalnancialcontrolswithreference
to nancial statements included obtaining an understanding of
internalnancial controls with reference to nancial statements,
assessing the risk that a material weakness exists, and tesng
andevaluangthe designand operangeecvenessof internal
control based on the assessed risk. The procedures selected
depend on the auditor’s judgement, including the assessment of
the risks of material misstatement of the nancial statements,
whether due to fraud or error.
5. We believe that the audit evidence we have obtained and the
audit evidence obtained by the other auditors in terms of their
reports referred to in the Other Maers paragraph below is
sucientandappropriatetoprovideabasisforourauditopinion
onthe HoldingCompany’sinternalnancial controlssystemwith
reference toconsolidatednancial statements.
statements
6. A company’s internal nancial controlwith reference to nancial
statements is a process designed to provide reasonable assurance
regardingthereliabilityofnancialreporngandthepreparaon
of nancial statementsfor external purposes in accordancewith
generally accepted accounng principles. A company’s internal
nancial control with reference to nancial statements includes
those policies and procedures that (1) pertain to the maintenance
of recordsthat, in reasonable detail, accuratelyand fairlyreect
the transacons and disposions of the assets of the company;
(2) provide reasonable assurance that transacons are recorded
as necessary to permit preparaon of nancial statements in
accordance with generally accepted accounng principles, and
that receipts and expenditures of the company are being made
only in accordance with authorisaons of management and
directors of the company; and (3) provide reasonable assurance
regarding prevenon or mely detecon of unauthorised
acquision,use,ordisposionofthecompany’sassetsthatcould
haveamaterial eectonthe nancial statements.
7. Because of the inherent limitaons of internal nancial controls
with reference to nancial statements, including the possibility
of collusion or improper management override of controls,
material misstatements due to error or fraud may occur and not
be detected. Also, projecons of any evaluaon of the internal
nancial controls with reference to nancial statements to
future periods are subject to the risk that the internal nancial
control with reference to nancial statements may become
inadequatebecauseof changes in condions,or that thedegree
of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Holding Company, its subsidiary companies,
its associate companies and joint venture company, which are
companies incorporated in India, have, in all material respects,
an adequate internal nancial controls system with reference
to nancial statements and such internal nancial controls with
reference to nancial statements were operang eecvely as
at March 31, 2023, based on the internal control over nancial
reporng criteria established by the Company considering the
essenal components of internal control stated in the Guidance
Note issued by the ICAI.
9. Our aforesaid reports under Secon 143(3)(i) of the Act on the
adequacy and operang eecveness of the internal nancial
controlswithreferencetonancialstatementsinsofarasitrelates
to nine subsidiary companies, two associate companies and
one joint venture company, which are companies incorporated
in India, is based on the corresponding reports of the auditors
of such companies incorporated in India. Our opinion is not
modiedin respect of thismaer.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraonNumber:304026E/E-300009
A.J. Shaikh
Partner
Membership Number : 203637
UDIN: 23203637BGXOZG8407
Place : Chennai
Date : May23, 2023
ANNEXURE A TO INDEPENDENT AUDITORS’ REPORT
192 Ashok Leyland Limited
CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2023
Note
As at
As at
` Crores ` Crores
Property, plant and equipment 1.1 5,363.61 5,317.15
Capital work-in-progress 1.1 139.15 139.38
Right-of-use asset 1.1a 399.34 427.29
Goodwill(including consolidaon) 1,175.11 1,031.83
Other Intangible assets 1.2 1,190.77 1,118.31
Intangible assets under development 1.2 128.97 100.63
Investments - Accounted for using equity method 1.3 55.27 46.60
Financial assets
(i) Investments 1.3 1,285.74 951.89
(ii) Tradereceivables 1.4 2.84 0.03
(iii) Loans 1.5 19,646.38 14,890.73
(iv) Other nancial assets 1.6 496.21 358.85
Deferredtaxassets(net) 1.7 49.08 27.13
Income tax assets (net) 1.8 222.10 213.37
Other non-current assets 1.9 330.52 339.29
Current assets
Inventories 1.10 3,440.43 2,540.55
Financial assets
(i) Investments 1.11 3,511.34 1,653.63
(ii) Tradereceivables 1.12 4,187.36 3,264.09
(iii) Cash and cash equivalents 1.13a 1,908.58 2,030.96
(iv) Bank balances other than (iii) above 1.13b 278.14 107.20
(v) Loans 1.14 8,681.43 6,818.03
(vi) Other nancial assets 1.15 782.14 922.45
CurrentTax Assets (Net) 1.8a 1.84 -
Contract Assets 1.16 32.84 21.84
Other current assets 1.17 1,347.42 1,215.92
Assetclassied as held forsale 1.17A 71.92 63.63
Equity share capital 1.18 293.61 293.55
Other equity 1.19 8,260.32 7,010.34
Non-controlling interest 2,244.81 1,286.27
Total equity
Financialliabilies
(i) Borrowings 1.20 19,502.86 15,297.30
(ii) LeaseLiabilies 188.97 160.57
(iii) Other nancial liabilies 1.21 164.01 143.20
Contractliabilies 1.22 250.04 193.83
Provisions 1.23 633.28 283.99
Deferredtaxliabilies(net) 1.24 722.00 315.83
Othernon-currentliabilies 1.25 13.68 -
Financialliabilies
(i) Borrowings 1.26 11,417.58 8,642.05
(ii) LeaseLiabilies 51.52 45.10
(iii) Trade payables 1.27
a) Total outstanding dues ofmicroenterprisesandsmall enterprises 77.09 62.63
b) Total outstandingdues of creditorsother than micro enterprises and small enterprises 7,504.78 7,187.28
(iv) Other nancial liabilies 1.28 1,601.76 1,188.06
Contractliabilies 1.29 458.35 498.75
Provisions 1.30 586.52 532.68
Othercurrentliabilies 1.31 618.18 323.75
Currenttaxliabilies(net) 1.32 128.30 123.82
Liabiliesdirectlyassociatedwith assets classied asheld for sale 1.17B 10.87 11.78
TheaboveConsolidatedBalance Sheet should bereadin conjuncon with the accompanyingnotes.
Thisis theConsolidatedBalance Sheet referred to inour report ofevendate.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
ExecuveChairman
DIN: 00133410
Shenu Agarwal
ManagingDirectorand
ChiefExecuveOcer
DIN: 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
Annual Report 2022-23 193
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR
THE YEAR ENDED MARCH 31, 2023
Note
` Crores ` Crores
Income
Revenuefromoperaons 2.1 41,672.60 26,237.15
Other income 2.2 110.77 86.81
Total Income
Cost of materials and services consumed 28,272.18 16,619.60
Purchases of stock-in-trade 1,176.21 945.42
Changes ininventoriesof nished goods,stock-in-tradeand work-in-progress (629.49) 48.24
Employeebenets expense 2.3 3,234.38 2,616.76
Finance costs 2.4 2,093.50 1,869.05
Depreciaonand amorsaon expense 2.5 900.22 865.96
Other expenses 2.6 4,526.42 3,241.89
Shareof protof associatesand joint ventures(net) 10.75 7.52
Exceponalitems 2.7 47.89 (324.15)
Currenttax- charge/ (credit) 967.02 102.65
Deferredtax -(credit) / charge (60.09) (16.79)
906.93 85.86
A (i) Itemsthat will not bereclassied toProt or Loss
- Remeasurementof denedbenet plans (14.11) (39.57)
- Share of other comprehensive income in associates and joint ventures 0.03 0.06
(ii) Income taxrelangto itemsthat willnot be reclassied toProtor Loss 4.85 13.75
B (i) Itemsthat willbe reclassied toProt orLoss
- Exchangedierencesintranslangthe nancialstatementsofforeignoperaons (11.29) 4.71
- Eecve poron of gainsand loss on designatedporon of hedging instruments
ina cash ow hedge 11.87 34.99
- Gain / (Loss) on fairvaluaonof loans relangtonancing acvies 122.97 (278.36)
- Change in allowancesforexpectedcredit loss relangtonancing acvies - -
- Share of other comprehensive income in associates and joint ventures (0.80) (10.75)
(ii) Income taxrelangto itemsthat willbe reclassied toProt orLoss (35.10) 57.83
Owners of the Company 1,240.81 (358.61)
Non-controlling interests 120.85 73.16
Owners of the Company 45.98 (152.96)
Non-controlling interests 32.44 (64.38)
Owners of the Company 1,286.79 (511.57)
Non-controlling interests 153.29 8.78
Earnings/ (Loss) perequity share (Facevalue` 1 each) 3.4
- Basic (in `) 4.23 (1.22)
- Diluted(in `) 4.22 (1.22)
Theabove ConsolidatedStatementof Protand Loss should beread in conjunconwith the accompanyingnotes.
Thisis theConsolidatedStatementofProtand Loss referred to inour report ofevendate.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
ExecuveChairman
DIN: 00133410
Shenu Agarwal
ManagingDirectorand
ChiefExecuveOcer
DIN: 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
194 Ashok Leyland Limited
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE
YEAR ENDED MARCH 31, 2023
` Crores ` Crores
Income tax expense 906.93 85.86
Shareof protof associatesand joint ventures(net) (10.75) (7.52)
Depreciaonand amorsaonexpense 839.20 816.00
Depreciaonof right-of-useasset 61.02 49.96
Share based payment costs 3.54 0.64
Impairment(reversal)/ allowancein valueof goodwill and netassets of subsidiaries (1.39) 236.91
Provisionrelangto EMAASbusiness classied as asset heldfor sale - 26.84
Lossin relaonto transfer of EV business - 3.02
Reversalof provisionforobligaon - (81.00)
Obligaonrelangtodisconnued productsof LCV division(net of reversal) (14.90) 3.67
Reversalof provisionrelangto sale oflong term investments - (1.17)
Impairment(reversal)/lossallowance/writeoontradereceivable/otherreceivables
/loans (net) (82.28) (12.96)
Netgain arisingon nancial asset mandatorilymeasuredat FVTPL (6.72) (1.14)
Foreignexchangeloss / (gain) 37.18 (4.40)
Exchange loss on swap contracts - 17.10
Proton sale ofProperty, plantand equipment (PPE)and intangible assets- net (13.54) (0.93)
Proton sale ofinvestments- net (36.79) (13.31)
(Gain)/ Loss on fairvaluaonof investmentin fellowsubsidiary (65.67) 107.13
Loss/ (Gain) on preclosureof leases 0.07 (0.14)
Finance costs 376.74 334.94
Interest income (31.03) (27.73)
Tradereceivables (902.17) (254.12)
Inventories (899.88) (47.53)
Non-currentand currentnancial assets (6,724.98) 56.88
Other non-current and current assets (113.82) (203.94)
Assetand liabilies classied as heldfor sale (9.20) -
Ulisaonfrom /(Paymentto)escrow account 5.32 (9.59)
Contract assets (7.13) (2.12)
Related party advances/ receivables(net) 1.19 (6.11)
Tradepayables 320.02 1,915.84
Non-currentand currentnancial liabilies 384.10 46.78
Othernon-current andcurrent liabilies 280.72 96.82
Non-currentand currentcontractliabilies (0.43) 4.84
Other non-current and current provisions 405.03 56.71
Incometaxpaid net o refund (561.30) (56.22)
[A]
Annual Report 2022-23 195
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE
YEAR ENDED MARCH 31, 2023
` Crores ` Crores
Purchase of PPE and intangible assets (929.10) (508.72)
Proceedson sale ofPPE and intangibleassets including sale of immovableproperes 12.68 9.49
Proceeds on surrender of leasehold land 62.70 97.61
Purchase of controlling stake in a subsidiary (218.44) -
Proceeds from sale of non-current investments - 0.07
Purchase of non-current investments - (2.50)
Purchase of current investments (net) (1,439.64) (1,283.82)
Proceedsfromsale of non-currentinvestmentsrelangtonancing acvies 568.49 627.07
Purchaseof non-currentinvestmentsrelang tonancing acvies (818.99) (876.33)
Proceedsfromsale of currentinvestmentsrelangtonancing acvies 1,584.15 170.29
Purchaseof currentinvestmentsrelang tonancing acvies (1,968.50) (281.35)
Proceeds from bank deposits 515.00 752.61
Investment in bank deposits (391.57) (663.71)
Redemponof escrowaccount - 2.82
InterCorporateDepositsgiven (60.00) -
InterCorporateDepositsrepaid 113.00 -
Interest received 35.26 39.80
[B]
Proceedsfromissue of equity shares(including securies premium) 5.05 -
Issue of shares to non-controlling interest shareholders 1,053.03 137.77
Proceeds from non-current borrowings 15,140.13 9,006.81
Repayments of non-current borrowings (8,832.36) (8,173.75)
Proceeds from current borrowings 5,431.27 5,249.79
Repayments of current borrowings (4,826.06) (6,066.60)
Payments of lease liability (66.97) (50.55)
Interest paid (329.95) (304.97)
Dividendpaid (293.55) (176.13)
[C]
[A+B+C]
Opening cash and cash equivalents
Pursuanttobusiness combinaon 28.47 -
Exchangeuctuaonon foreigncurrencybank balances 2.78 (0.34)
Theabove ConsolidatedStatementof CashFlows should be readin conjuncon withthe accompanyingnotes.
Thisis theConsolidatedStatementofCash Flows referredtoinour report of evendate.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
ExecuveChairman
DIN: 00133410
Shenu Agarwal
ManagingDirectorand
ChiefExecuveOcer
DIN: 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
196 Ashok Leyland Limited
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED MARCH 31, 2023
A. ` Crores
Balance as at
the beginning of
Changes in
equity share capital
during the year
Balance as at
the end of
Changes in equity
share capital during
the year
Balance as at
the end of
293.55 - 293.55 0.06 293.61
` Crores
Shares
money
pending
Allotment
subsidiary
Reserves and Surplus
Items of Other
comprehensive income
Capital
Reserve
Premium
Capital
Reserve
Outstanding
Account
General
Reserve
Statutory
Reserve
Retained
Foreign
Currency
Reserve
Fair
of Loans
Financing
Cash Flow
Hedge
Reserve
to owners of
the Company
controlling
Interests
(Loss)/ Protfortheyear - - - - - - (358.61) - - - (358.61) 73.16
Othercomprehensive(loss) / income - - - - - - (26.35) (6.04) (143.33) 22.76 (152.96) (64.38)
Total Comprehensive Income for the year
Dividendsincluding taxthereon (176.13) (176.13)
On issue of equity shares - 1.13 - 1.13 -
Recognionofsharebased payments (0.24) - (0.24) -
Issue of equity shares to Non-controlling
interest (NCI) and change in interests between
the owners and NCI - (0.03) (0.50) (21.30) 150.77 (0.26) - 128.68 9.21
Transferto / fromESOP - - 0.13 - (0.13) - - - - - -
Transferto generalreservepursuanttolapse
of ESOP - - - (2.22) 2.22 - - - - - -
Transferto / fromretainedearnings - - - - - - 68.18 (68.18) - - - -
Annual Report 2022-23 197
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED MARCH 31, 2023
` Crores
Shares
money
pending
Allotment
subsidiary
Reserves and Surplus
Items of Other
comprehensive income
Capital
Reserve
Premium
Capital
Reserve
Outstanding
Account
General
Reserve
Statutory
Reserve
Retained
Foreign
Currency
Reserve
Fair
of Loan
Financing
Cash Flow
Hedge
Reserve
to owners of
the Company
controlling
interests
-
Prot/(Loss) fortheyear - - - - - - 1,240.81 - - - 1,240.81 120.85
Othercomprehensiveincome/ (loss) - - - - - - (5.25) (12.09) 55.60 7.72 45.98 32.44
Total Comprehensive Income for the year
Dividendsincluding taxthereon (293.55) (293.55)
Recognionofsharebased payments 1.87 1.87 -
On issue of shares 0.04 543.72 - 543.76 -
Issue of equity shares to Non-controlling
interest (NCI) and change in interests between
the owners and NCI - (12.88) (0.85) (72.49) (161.52) 1.42 (42.57) - (288.89) 805.25
Transferto / fromretainedearnings - - - - - - 98.75 (98.75) - - - -
Theabove Consolidated StatementofChanges in Equityshould be readin conjuncon with the accompanyingnotes.
Thisis theConsolidatedStatementofChangesin Equity referred to in our report of evendate.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
ExecuveChairman
DIN: 00133410
Shenu Agarwal
ManagingDirectorand
ChiefExecuveOcer
DIN: 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
198 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Background:
Ashok Leyland Limited (“the ParentCompany”) (CIN: L34101TN1948PLC000105) is a public limited company incorporated and domiciled in
Indiaand governedbytheCompanies Act,2013 (“Act”). TheParentCompany’sregisteredoceissituatedat1, SardarPatelRoad,Guindy,
Chennai, Tamil Nadu, India. The Parent Company has fourteen subsidiaries, two joint ventures and three associates. The main acvies
of the Parent Company along with its subsidiaries, joint ventures and associates relate to manufacture, sale, vehicle and housing nance,
IT services and services related to a wide range of commercial vehicles. Also Refer Note 3.14. The Parent Company also manufactures
engines for industrial and marine applicaons, forgings and casngs. The Parent Company together with its subsidiaries is hereinaer
referred to as the “Group”.
The Consolidatednancial statementshavebeen preparedin accordancewith Indian AccounngStandards (IndAS) noed under Secon
133of the CompaniesAct, 2013 (theAct) [Companies (IndianAccounngStandards)Rules, 2015] andother relevantprovisionsofthe Act,
asamended from meto me.
The consolidated nancial statements have been prepared on the historical cost basis except for certain nancial instruments that are
measuredat fairvaluesat the endof each reporng period,as explained inthe accounng policiesbelow.
Historicalcostisgenerally basedonthefairvalueoftheconsideraongiveninexchangeforgoodsandservices. Fairvalueisthepricethat
wouldbe receivedtosell an assetor paid totransferaliability in an orderlytransaconbetweenmarketparcipants atthe measurement
date, regardless of whether that price is directly observable or esmated using another valuaon technique. In esmang the fair value
of an asset or a liability, the Group takes into account the characteriscs of the asset or liability if market parcipants would take those
characteriscs into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure
purposes in these consolidated nancial statements is determined on such a basis, except for share-based payment transacons that are
withinthescopeofIndAS102,leasingtransaconsthatarewithinthescopeofIndAS116,andmeasurementsthathavesomesimilaries
to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
In addion, for nancial reporng purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which
the inputs to the fair valuemeasurements are observable and the signicance of the inputs to the fair value measurement in its enrety,
which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in acve markets for idencal assets or liabilies that the enty can access at the
measurementdate;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly
orindirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
All assets and liabilies have been classied as current or non-current as per the Group’s normal operang cycle and other criteria set
out in the Schedule III to the Act. Based on the nature of products and the me between the acquision of assets for processing and
their realisaon in cash and cash equivalents, the Group has determined its operang cycle as twelve months for the purpose of
current– non-currentclassicaonof assets and liabilies.
The consolidated nancial statements are presented in Indian Rupees (`) and all values are rounded to the nearest crores, except where
otherwise indicated.
The consolidatednancial statements wereapprovedforissue by the Boardof DirectorsonMay 23, 2023.
MinistryofCorporateAairs(“MCA”)noesnewstandardsoramendmentstotheexisngstandardsunderCompanies(IndianAccounng
Standards)Rulesasissuedfrommetome.OnMarch31,2023,MCAamendedtheCompanies(IndianAccounngStandards)Amendment
Rules, 2023, as below:
a) Ind AS1 - Presentaonof Financial Statements
This amendment requires the enes to disclose their material accounng policies rather than their signicant accounng policies.
Theeecvedateforadopon of this amendmentis annual periods beginning on oraer April 1,2023.
b) Ind AS 12 - IncomeTaxes
This amendment has narrowedthe scope of the inial recognion exempon so that it does not apply to transaconsthat give rise
to equal and oseng temporarydierences. The eecvedate for adopon of this amendment is annual periods beginning on or
aerApril 1, 2023.
Annual Report 2022-23 199
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
c) Ind AS8 - AccounngPolicies, Changesin AccounngEsmatesand Errors
Thisamendmenthasintroducedadenionof‘accounngesmates’andincludedamendmentstoIndAS8tohelpenesdisnguish
changes in accounng policies from changes in accounng esmates. The eecve date for adopon of this amendment is annual
periodsbeginning on or aerApril 1, 2023.
These amendments are not expected to have a material impact on the Group in the current or future reporng periods and on
foreseeablefuture transacons.
The consolidated nancial statements of the Group incorporate the nancial statements of the Parent Company and its subsidiaries. The
ParentCompanyhascontroloverthesubsidiariesas itisexposed,or hasrights,to variablereturnsfromitsinvolvement withthe investee;
andhas the ability to aectits returnsthrough its powerover thesubsidiaries.
When the Parent Company has less than a majority of the vong rights of an investee, it has power over the investee when the vong
rightsaresucienttogive itthe praccalabilitytodirectthe relevant acviesof theinvesteeunilaterally. TheParentCompanyconsiders
all relevantfacts and circumstances in assessing whether or not the Parent Company’s vong rights in an investee are sucient to give it
power, including rights arising from other contractual arrangements.
Consolidaon of a subsidiary begins when the Parent Company obtains control over the subsidiary and ceases when the Parent Company
losescontrolofthesubsidiary.Specically,incomeandexpensesofasubsidiaryacquiredordisposedofduringtheyearareincludedinthe
consolidated statement of prot or loss and other comprehensive income from the date the ParentCompany gains control unl the date
when the Parent Company ceases to control the subsidiary.
Prot or loss and each component of other comprehensive income are aributed to the owners of the Parent Company and to the non-
controlling interests. Total comprehensive income of subsidiaries is aributed to the owners of the Parent Company and to the non-
controllinginterestsevenif this results inthe non-controllinginterestshavinga decitbalance.
Adjustments are made to the nancial statements of subsidiaries, as and when necessary, to bring their accounng policies into line with
theGroup’s accounngpolicies.
All intragroup assets and liabilies, equity, income, expenses and cash ows relang to transacons between members of the Group are
eliminatedin full onconsolidaon.
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted
forasequitytransacons.ThecarryingamountsoftheGroup’sinterestsandthenon-controllinginterestsareadjustedtoreectthechanges
intheir relaveinterestsin thesubsidiaries.
Any dierence between the amount by which the non-controlling interests are adjusted and the fair value of the consideraon paid or
receivedis recognized directlyin equity and aributedto ownersof the ParentCompany.
A common control business combinaon, involving enes or businesses in which all the combining enes or businesses are ulmately
controlledbythesamepartyorparesbothbeforeandaerthebusinesscombinaonandwherethecontrolisnottransitory,isaccounted
forusing thepooling of interestmethodin accordancewith Ind AS 103 ‘Business Combinaons’.
Otherbusiness combinaons,involvingenesorbusinessesareaccountedforusingacquision method.Consideraontransferredinsuch
businesscombinaonsismeasuredatfairvalue,whichiscalculatedasthesumoftheacquisiondatefairvaluesoftheassetstransferredby
theGroup,liabiliesincurredby theGrouptotheformerownersoftheacquireeand theequityinterestsissuedbytheGroupin exchange
of control of the acquiree.
Goodwill is recognised and is measured as the excess of the sum of the consideraon transferred, the amount of any non-controlling
interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree, over the net fair value of assets
andliabilies acquired.
200 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Goodwill arisingon anacquision ofa businessis carriedatcostas establishedatthedateof acquisionof thebusiness lessaccumulated
impairment losses, if any.
For the purposes of impairment tesng, goodwill is allocated to each of the Group’s cash-generang units (or groups of cash-generang
units)that is expectedto benetfromthe synergiesof the combinaon.
A cash-generang unitto whichgoodwill hasbeen allocatedistestedforimpairment annually, or whenthereis an indicaonthatthe unit
maybe impaired. The recoverable amount of cash-generangunit is determined foreach legal entyand LCVdivision of ParentCompany
basedon a value inuse calculaon whichuses cash owprojecons and appropriatediscount rateis applied.
Thediscountratetakesintoaccounttheexpectedrateofreturntoshareholders,theriskofachievingthebusinessprojecons,risksspecic
totheinvestmentsandotherfactors.Iftherecoverableamountofthecash-generangunitislessthanitscarryingamount,theimpairment
loss is allocated rst to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit, pro
rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in prot or loss. An
impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevantcash-generangunit, the aributableamount of goodwill is included in the determinaon of the protor loss
on disposal.
AnassociateisanentyoverwhichtheGrouphassignicantinuence.Signicantinuenceisthepowertoparcipateinthenancialand
operangpolicydecisions of the investee but is not controlorjoint controloverthose policies.
A joint ventureis a joint arrangementwhereby the pares that havejoint controlof the arrangementhave rightsto the net assets of the
joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about
therelevantacvies requireunanimous consentof the pares sharingcontrol.
The results and assets and liabilies of associates or joint ventures are incorporated in these consolidated nancial statements using the
equity method of accounng. Under the equity method, an investment in an associate or a joint venture is inially recognised in the
consolidated balance sheet at cost and adjusted thereaer to recognise the Group’s share of the prot or loss and other comprehensive
income of the associate or joint venture. When the Group’s share of losses of an associate or a joint venture exceeds the Group’s interest
inthatassociateorjointventure,theGroupdisconnuesrecognisingitsshareoffurtherlosses.Addionallossesarerecognisedonlytothe
extentthat the Grouphas incurredlegal or construcveobligaonsormade paymentson behalf of the associateor jointventure.
On acquision of the investment in an associate or a joint venture, any excess of the cost of the investment over the Group’s share of
the net fair value of the idenable assets and liabilies of the investee is recognised as goodwill, which is included within the carrying
amountoftheinvestment.AnyexcessoftheGroup’s shareofthenetfairvalueoftheidenableassetsandliabiliesoverthecostofthe
investment, aerreassessment,is recogniseddirectly in equity ascapital reservein the period inwhich the investmentis acquired.
When there is any objecve evidence of impairment, the enre carrying amount of the investment (including goodwill) is tested for
impairment in accordance with Ind AS 36 ‘Impairment of Assets’ as a single asset by comparing its recoverable amount (higher of value in
use and fair value less costs of disposal) with its carrying amount, any impairment loss recognised forms part of the carrying amount of the
investment. Any reversal of that impairment loss is recognised in accordance with Ind AS 36 to the extent that the recoverable amount of
the investment subsequently increases.
The Groupdisconnues theuse of the equity methodfrom the datewhen the investment ceases tobe an associateor a joint venture, or
when the investment is classied as held for sale. When the investment becomes a subsidiary, the Group accounts for its investment in
accordance with Ind AS 103 ‘Business Combinaon’. When the Group retains an interest in the former associate or joint venture and the
retainedinterestis anancialasset,theGroupmeasuresitatfairvalueatthatdateandthefairvalueisregardedasitsfairvalueoninial
recognion in accordance with Ind AS 109. The dierence between the carrying amount of the associate or joint ventureat the date the
equitymethod wasdisconnued, andthe fairvalue ofany retainedinterest and anyproceedsfromdisposing of a partinterestis included
inthe determinaonof the gainor loss on disposal ofthe associate orjoint venture.
Ind AS 115 establishes a ve-step model to account for revenue arising from contracts with customers and requires that revenue be
recognised at an amount that reects the consideraon to which an enty expects to be entled in exchange for transferring goods or
services to a customer.
IndAS115requiresenestoexercisejudgement,takingintoconsideraonallof therelevantfactsand circumstanceswhenapplying each
step of the model to contracts with their customers. The standard also species the accounng for the incremental costs of obtaining a
contract and the costsdirectly relatedto fullling a contract.
Revenue from contract with customer:
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount
thatreectsthe consideraon towhichthe Groupexpectsto beentled inexchangeforthosegoods orservices.The Grouphas generally
concluded that it is the principal in its revenue arrangements, because it typically controls the goods or services before transferring them
to the customer.
Annual Report 2022-23 201
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Sale of Products:
Revenue from sale of products is recognised at the point in me when control of the asset is transferred to the customer, generally on
delivery of the product. The Group operates predominantly on cash and carry basis excepng sale to State Transport Undertaking (STU),
Governmentprojectcustomersbasedontendertermsandcertainexportcustomersanddomesccustomerswhichareoncreditbasis.Sale
ofengines and gensets andferrouscasngsare generallysold oncredit basis tocustomers.
TheGroupprovidesretrospecverebatestocertaincustomersbasedonachievementoftargetedvolumesandothermeasures.Toesmate
thevariable consideraonforthe expectedfuturerebates,the Groupapplies the expectedvaluemethod.
TheGroupconsiderswhetherthereareotherpromisesinthe contract thatareseparate performanceobligaonstowhichaporonofthe
transaconpriceneedstobeallocated(e.g.,extendedwarranes,freight&insuranceetc.).Indeterminingthetransaconpriceforthesale
ofproduct, the Groupconsidersthe eectsof variableconsideraon,the existence of consideraonpayabletothe customer, etc.
Sale of Service:
Revenue from services is recognised over a period of me as and when the services are rendered in accordance with the specic terms
of contract with customer. The receipt of consideraon for extended warranty services, free services, AMC and freight and insurance is
generallyreceivedwhen consideraonreceivable fromsale of products is received fromcustomer. In certaincases, the AMC contractsare
soldasaseparateproductoncashbasisoroncreditasperthecontractwithcustomer.Ontherecognionofthereceivablefromcustomer,
theGrouprecognisesacontractliabilitywhichisthenrecognisedasrevenueasoncetheservicesarerendered.Usingthepraccalexpedient
in Ind AS 115, the Group does not adjust the promised amount of consideraon for the eects of a signicant nancing component if
it expects, at contract incepon, that the period between the transfer of the promised good or service to the customer and when the
customerpaysforthatgoodorservicewillbeoneyearorless.Forothercases,therevenuereectsthecashsellingpricethatthecustomer
wouldhavepaidforthepromisedserviceswhentheservicesaretransferredtocustomer.Thusthereisnosignicantnancingcomponent.
If the consideraon in a contractincludes avariable amount,the Group esmatesthe amount of consideraonto which it will beentled
in exchangefor transferring the goods to the customer. The variable consideraon is esmatedat contract incepon and constrained unl
itishighly probablethatasignicantrevenuereversalintheamountof cumulaverevenuerecognisedwillnot occurwhen theassociated
uncertaintywith thevariable consideraonis subsequentlyresolved.
The Groupprovidesretrospecvevolumerebatestocertain customersonce the quantyof productspurchased duringthe period exceeds
a threshold specied in the contract. Rebates are oset against amounts payable by the customer. To esmate the variable consideraon
for the expected future rebates, the Group applies the most likely amount method for contracts with a single-volume threshold and the
expectedvaluemethodforcontractswith morethanonevolumethreshold.Theselectedmethodthatbestpredictstheamountofvariable
consideraon is primarily driven by the number of volume thresholds containedin the contract.The Group then applies the requirements
onconstrainingesmatesof variableconsideraonand recognisesa refundliability forthe expectedfuture rebates.
The Group receives short-term advances from its customers. Using the praccal expedient in Ind AS 115, the Group does not adjust the
promised amount of consideraon for the eects of a signicant nancing component if it expects, at contract incepon, that the period
between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be one
yearor less. Thus thereis no signicantnancing component.
Refer Note 1B.18 onwarrantyobligaons
Contract balances:
Contract assets
A contract asset is the right to consideraon in exchange for goods or services transferred to the customer. If the Group performs by
transferringgoodsorservicestoacustomerbeforethecustomerpaysconsideraonorbeforepaymentisdue,acontractassetisrecognised
forthe earnedconsideraonthat is condional.
Trade receivables
Tradereceivableis part of contractbalancesas per Ind AS 115.
AcontractliabilityistheobligaontotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsideraon(oranamount
ofconsideraonisdue) fromthecustomer.If a customerpaysconsideraonbefore theGroup transfers goodsor services tothecustomer,
acontractliability is recognisedwhenthe paymentis made orthe paymentis due(whichever is earlier).Contractliabilies arerecognised
as revenue when the services are provided as set out in the contract.
202 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
A refund liability is the obligaon to refund some or all of the consideraon received (or receivable) from the customer and is measured at
the amountthe Group ulmatelyexpectsit will haveto returnto the customer. The Groupupdates its esmatesof refund liabilies (and the
correspondingchangeinthetransaconprice)attheendofeachreporngperiod.Refertoaboveaccounngpolicyonvariableconsideraon.
Under Ind AS109, interestincomeis recordedusing the eecveinterestrate method forall nancial instrumentsmeasuredat amorsed
cost and nancial instrument measured at FVOCI. The EIR is the rate that exactly discounts esmated future cash receipts through the
expectedlifeof thenancial instrument or, when appropriate,a shorter period,to the netcarrying amount of thenancial asset.
The EIR (and therefore,the amorsed cost of the asset) is calculated by taking into accountany discount or premium on acquision, fees
andcoststhatareanintegralpartoftheEIR.TheGrouprecognisesinterestincomeusingarateofreturnthatrepresentsthebestesmate
ofa constantrateofreturn overthe expectedlifeof the nancial instrument.
If expectaons regardingthecash owson thenancial assetare revisedforreasonsother thancredit risk,the adjustmentis bookedas a
posiveor negaveadjustmenttothe carrying amountof the assetin the balance sheetwith an increaseor reducon ininterestincome.
Theadjustment is subsequentlyamorsed throughInterestincomein the statementof protand loss.
Interest Income
The Group calculates interest income by applying EIR to the gross carrying amount of nancial assets other than credit impaired assets.
When a nancial asset becomes credit impaired and is, therefore, regarded as ‘stage 3’, the Group calculates interest income on the net
basis.If the nancial asset curesand is no longercredit impaired,the Grouprevertsto calculanginterestincomeon a grossbasis.
OtheroperangrevenuescompriseofincomefromancillaryacviesincidentaltotheoperaonsoftheGroupandisrecognisedwhenthe
right to receive the income is established as per the terms of the contract.
Dividend income from investments is recognised when the Group’s right to receive payment has been established (provided that it is
probablethat theeconomic benets willow to theGroup and theamount of incomecan be measuredreliably).
Interestincomeis accrued on ame basis, by reference tothe principal outstandingand atthe eecveinterestrateapplicable(provided
thatit is probablethat the economicbenets will owto the Groupand the amountof income canbe measured reliably).
Feeon nancial guaranteeprovidedby theParentCompanyis accrued as Other income.
Inpreparingtheconsolidatednancialstatements,transaconsincurrenciesotherthantheenty’sfunconalcurrency(foreigncurrencies)
are recognised at the rates of exchange prevailing at the dates of the transacons. At the end of each reporng period, monetary items
denominated in a foreign currency are restated at the rates prevailing at that date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are not restated.
Exchangedierenceson monetaryitems arerecognisedin protor loss in the periodin which they arise except for:
• Exchange dierence on translaon of derivave instruments designated as cash ow hedge (see Note 1B.19 below for hedging
accounngpolicies).
• Forthepurposesofpresenngtheseconsolidatednancialstatements,theassetsandliabiliesoftheGroup’seneswhosefunconal
currency is other than INR are translated into Currency Units using exchange rates prevailing at the end of each reporng period.
Income and expense items are translated at the average exchange rates for the period, unless exchange rates uctuate signicantly
during that period, in which case the exchange rates at the dates of the transacons are used. Exchange dierences arising, if any,
are recognised in other comprehensive income and accumulated in equity as foreign currency translaon reserve (and aributed to
non-controlling interests as appropriate).
Borrowingcosts(GeneralBorrowingandSpecicBorrowing)directlyaributabletotheacquision,construconorproduconofqualifying
assets,whichareassetsthatnecessarily take asubstanalperiodofmetogetreadyfortheirintendeduse orsale,areadded tothecost
ofthose assets, unlsuch me as the assetsare substanallyreadyfortheir intendeduse or sale.
All other borrowingcostsare recognisedin protor loss in theperiod in which theyare incurred.
Annual Report 2022-23 203
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Government grants (including export incenves and incenves on specied goods manufactured in the eligible unit) are recognised only
whenthere is reasonableassurancethat the Groupwill comply withthe condions aachedto themand the grantswill be received.
Governmentgrantsrelangtoincomearerecognisedinprotorlossona systemacbasisovertheperiods inwhichthe Grouprecognises
asexpenses,therelatedcostsforwhichthegrantsareintendedtocompensate.Grantrelangtoassetsareneedoagainsttheacquision
cost of the asset.
Thebenetofa governmentloanatabelowmarketrateof interestis treated asagovernmentgrant, measuredatthedierence between
proceeds received and the fair value of the loan based on prevailing market rates.
Payments to dened contribuon plans i.e., Group’s contribuon to superannuaon fund, employee state insurance and other funds are
determinedundertherelevantschemesand/ orstatuteandchargedtotheStatementofProtandLossin theperiodofincurrencewhen
the services are rendered by the employees.
For dened benet plans i.e. Group’s liability towards gratuity (funded and unfunded), Group’s contribuon to provident fund, other
rerement/ terminaon benets and compensated absences, the cost of providing benets is determined using the projected unit credit
methodwith actuarial valuaonsbeing carried out atthe end of each annual reporng period. In respect of providentfund, contribuons
made to trusts administered by the Group, the interest rate payable to the members of the trust shall not be lower than the statutory rate
ofinterestdeclaredbythe CentralGovernmentunderthe EmployeesProvidentFund andMiscellaneous ProvisionsAct, 1952and shorall,
ifany, shallbe contributedby the Groupand chargedto the Statementof Protand Loss.
Dened benetcostsare comprisedof:
• service cost(including currentservice cost,pastservicecost, aswell as gainsand losses on curtailmentsand selements);
• net interest expense orincome; and
• re-measurement.
The Group presents the rst two components of dened benet costs in consolidated prot & loss in the line item ‘Employee benets
expense’. Curtailment gains and losses are accounted for as past service costs.
Re-measurement of net dened benet liability / asset pertaining to gratuity and remeasurement of net dened liability pertaining to
provident fund comprise of actuarial gains / losses (i.e. changes in the present value resulng from experience adjustments and eects
of changes in actuarial assumpons) and is reected immediately in the consolidated balance sheet with a charge or credit recognised in
other comprehensive income in the period in which they occur. Re-measurement recognised in other comprehensive income is reected
immediatelyin retainedearningsand is not reclassiedto protor loss.
Liability for terminaon benets like expenditure on Voluntary Rerement Scheme is recognised at the earlier of when the Group can no
longerwithdrawthe oerof terminaonbenet or whenthe Group recognisesanyrelatedrestructuringcosts.
A liability is recognised for benets accruing to employees in respect of salaries, wages, performance incenves, medical benets and
othershort termbenetsin theperiod therelatedservice isrendered,atthe undiscountedamountofthe benetsexpectedtobe paidin
exchange for that service.
Liabilies recognised in respect of other long-term employee benets are measured at the present value of the esmated future cash
oulowsexpectedto be madeby the Groupin respectof servicesprovided byemployees upto the reporngdate.
Equity-seled share-based payments to employees (primarily employee stock opon plan) are measured by reference to the fair value of
the equity instruments at the grant date.
Thefairvaluedeterminedatthegrantdateoftheequity-seledshare-basedpayments isexpensedonastraight-linebasisoverthevesng
period,basedontheGroup’sesmateofequityinstrumentsthatwilleventuallyvest,withacorrespondingincreaseinequity.Attheendof
eachreporngperiod,theGrouprevisesitsesmateofthenumberofequityinstrumentsexpectedtovest.Theimpactoftherevisionofthe
originalesmates,ifany,isrecognisedinprotorlosssuchthatthecumulaveexpensereectstherevisedesmate,withacorresponding
adjustmenttothe share oponsoutstanding account.
204 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Income taxexpenserepresentsthe sumof the taxcurrentlypayableand deferred tax.Currentand deferredtaxarerecognisedin protor
loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current
anddeferredtaxare alsorecognised inother comprehensiveincome or directlyin equity respecvely.
Current tax is determined on taxableprots for the year chargeable to tax in accordance with the applicable tax rates and the provisions
oftheIncomeTaxAct,1961 includingotherapplicabletaxlawsthathavebeenenacted.Foreigncompaniesrecognisetax assets/liabilies
in accordance with applicable local laws.
Deferred tax is recognised on temporary dierences between the carrying amounts of assets and liabilies in the consolidated nancial
statementsand the corresponding tax bases used in the computaon of taxableprot. Deferredtax liabilies are generally recognised for
all taxable temporary dierences. Deferred tax assets are generally recognised for all deducble temporary dierences to the extent that
it is probable that taxableprots will be available againstwhich those deducble temporarydierences can be ulised. Such deferredtax
assetsandliabiliesarenotrecognisedifthetemporarydierencearisesfromtheinialrecognion(otherthaninabusinesscombinaon)
ofassets and liabilies in atransacon thataectsneither the taxableprot nor theaccounng prot.
Deferredtaxassetisrecognisedforthecarryforwardofunusedtaxlossesandunusedtaxcredits(Minimumalternatetaxcreditentlement)
tothe extentthat it is probablethat futuretaxableprot will be availableagainstwhich the unused taxlosses and unused taxcredits can
beulised.
The carrying amount of deferred tax assets is reviewedat the end of each reporng period and reducedto the extentthat it is no longer
probablethat sucienttaxableprotswill be availabletoallow all or part ofthe asset tobe recovered.
Deferred taxliabilies and assets are measuredat the taxratesthat are expectedto apply in the period in which the liability is seled or
theassetisrealised,basedontaxrates(andtaxlaws)thathave beenenactedorsubstanvely enactedbytheendofthereporngperiod.
ThemeasurementofdeferredtaxliabiliesandassetsreectsthetaxconsequencesthatwouldfollowfromthemannerinwhichtheGroup
expects,at theend of the reporngperiod, to recover or sele the carryingamount of itsassets and liabilies.
If there is uncertainty over tax treatment of an item, Group will predict the resoluon of the uncertainty. If it is probable that the
taxaon authority will accept the tax treatment, there will be no impact on the amounts of taxable prots / losses, tax bases,
unused tax losses /credits and tax rates. If it is not probable that tax authority will accept the tax treatment, Group will show the eect
of the uncertainty for each uncertain tax treatment by using either the most likely outcome or the expected outcome of the uncertainty.
Cost:
Property, plant and equipment held for use in the producon or supply of goods or services, or for administrave purposes, are stated in
thebalancesheetatcost(netofduty/taxcreditavailed)lessaccumulateddepreciaonandaccumulatedimpairmentlosses.Costofallcivil
works(including electricaon and ngs) is capitalisedwith the exceponof alteraons and modicaonsof a capitalnature to exisng
structureswherethe costof such alteraonormodicaon is `100,000 and below.
Properesinthecourseofconstruconforproducon,supplyoradministravepurposesarecarriedatcost,lessanyrecognisedimpairment
loss. Cost includes professional fees and other direct costs and, for qualifying assets, borrowing costs capitalised in accordance with the
Group’s accounng policy. Such properes are classied to the appropriate categories of property, plant and equipment when completed
andreadyforintendeduse.Depreciaonoftheseassets,onthesamebasisasotherpropertyassets,commenceswhentheassetsareready
for their intended use.
Fixtures, plant and equipment (including paerns and dies) where the cost exceeds `10,000 and the esmated useful life is two years or
more,is capitalisedand statedat cost(net of duty/ taxcredit availed)lessaccumulated depreciaonand accumulatedimpairmentlosses.
Subsequent expenditure is capitalised only if it is probable that the future economic benets associated with the expenditure will ow to
the Group and the cost of the item can be measured realiably.
Annual Report 2022-23 205
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Depreciaon is recognised so as to write o the cost of assets (other than freehold land and properes under construcon) less their
residual values over their useful lives, using the straight-line method. The esmateduseful lives, residual values and depreciaon method
arereviewedatthe end of each reporngperiod, with the eectof any changesin esmateaccountedforon a prospecvebasis.
Esmated useful lives of the assets, based on technical assessment, which are dierent in certain cases from those prescribed in
Schedule II to the Act, are as follows:
As per Schedule II
Buildings 30 / 60 30 / 60
Non-factoryservice installaons:
- In customer premises 12 10
Qualityequipment, canteenassets, majorJigs and xtures andhand tools 5 -12 15
Other plant and machinery 15 - 20 15
Paerns and dies 5 15
Furnitureand ngs 8 10
Aircra 18 20
Vehicles (including given on lease)
-Trucksand buses
- Cars and motorcycles
5/ 10
3
8
8/ 10
Oceequipment 8 5
Oceequipment – Dataprocessingsystem(including servers) 5 6
When signicant parts of an item of property, plant and equipment have dierent useful lives, they are accounted for as separate items
(majorcomponents)ofProperty,PlantandEquipmentand accordinglydepreciaoniscomputedbasedon theesmatedusefullivesofthe
assets.
Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenetsareexpectedtoarisefromthe
connueduseoftheasset.Anygainorlossarisingonthedisposalorrerementofanitemofproperty,plantandequipmentisdetermined
asthe dierencebetweenthe sales proceedsand the carrying amountof the asset andis recognisedin prot orloss.
Intangible assets acquired separately:
Intangible assets with nite useful lives that are acquired separately, where the cost exceeds `10,000 and the esmated useful life is
two years or more, is capitalised and carried at cost less accumulated amorsaon and accumulated impairment losses. Amorsaon is
recognisedona straight-linebasis overtheir esmatedusefullives.The esmateduseful lifeandamorsaonmethod arereviewedatthe
endof each reporng period,with the eectof anychanges inesmatebeing accountedforon a prospecvebasis.
Expenditureon researchacvies is recognisedas an expensein the period inwhich it is incurred.
An internally generated intangible asset arising from development (or from development phase of internal project) is recognised, if and only
if, all of the following have been demonstrated:
• technicalfeasibility ofcompleng the intangibleasset;
• intenonto completethe intangibleasset andintenon/ ability to useor sell it;
• how the intangibleasset willgenerateprobablefuture economicbenet;
• availabilityofadequatetechnical,nancialandotherresourcestocompletethedevelopmentandtouseorselltheintangibleassets;and
• the ability tomeasure reliablythe aributableexpenditureduring the developmentstage.
The amount inially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when
the intangible asset rst meets the recognion criteria listed above. Where no internally-generated intangible asset can be recognised,
developmentexpenditureis recognisedin protor loss in theperiod in which it is incurred.
Subsequenttoinialrecognion,internally-generatedintangibleassetsarereportedatcostlessaccumulatedamorsaonandaccumulated
impairment losses, on the same basis as intangible assets that are acquired separately.
206 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
An intangible asset is derecognised on disposal, or when no future economic benets are expected from use or disposal. Gains or losses
arisingfromde-recognionof an intangibleasset,measuredas the dierence betweenthe netdisposal proceedsand thecarrying amount
ofthe asset, is recognisedin protor loss when theasset is derecognised.
Esmateduseful livesof the intangibleassets, basedon technical assessment,are asfollows:
Classes of Intangible Assets
ComputerSoware:
Acquired 3 - 10
Developed 5 / 10
Technical Knowhow:
Acquired 5 / 6
Developed 6 / 10
Customerrelaonship 8
Trademark 10
At the end of each reporng period, the Group determines whether there is any indicaon that its assets (tangible, intangible assets and
investments inequity instrumentsinjointventuresandassociatescarriedat cost)havesuered animpairmentloss withreference totheir
carryingamounts.If anyindicaonofimpairmentexists,therecoverableamountof suchassetsis esmatedandimpairmentisrecognised,
if the carrying amount exceeds the recoverable amount. Recoverable amount is higher of the fair value less costs of disposal and value
in use. In assessing value in use, the esmated future cash ows are discounted to their present value using a pre-tax discount rate that
reectscurrent market assessments of the me value of money and the risks specic to the asset for which the esmatesof future cash
owshavenot been adjusted.
Intangible assets under development are tested for impairment annually at each balance sheet date.
When it is not possible to esmate the recoverable amount of an individual asset, the Group esmates the recoverable amount of the
cash-generang unit towhich the asset belongs.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generang unit) is increased to the revised
esmateofitsrecoverableamount,sothattheincreasedcarryingamountdoesnotexceedthecarryingamountcarriedhadnoimpairment
loss been recognised for the asset (or cash-generang unit) in prior years. A reversal of an impairment loss is recognised immediately in
protor loss.
TheIndianAccounngStandardonleases(IndAS116)requiresentytodeterminewhetheracontractisorcontainsaleaseattheincepon
of the contract.
IndAS 116requireslesseetorecognisealiability tomakeleasepaymentsandanassetrepresenngtheright-of-use assetduringthe lease
termforall leases exceptforshort termleases and leases oflow-valueassets, ifthey choose toapply such exempons.
Paymentsassociatedwithshort-termleasesandlowvalueassetsarerecognizedasexpensesinprotorloss.Short-termleasesareleaseswith
aleasetermof12monthsorless.Lowvalueassetscompriseofoceequipmentsandsmallitemsofplantandequipmentandocefurniture.
At the commencement date, Group recognise a right-of-use asset measured at cost and a lease liability measured at the present value of
the lease payments that are not paid at that date. The lease payments shall be discounted using the interest rate implicit in the lease, if
that rate can be readily determined. If that rate cannot be readily determined, the lessee shall use the lessee’s incremental borrowing rate
The costofthe right-of-use assetcomprise of,the amountof the inialmeasurementof the leaseliability, anylease paymentsmadeator
before the commencementdate,less any leaseincenves received.
At the commencement date, the lease payments included in the measurement of the lease liability comprise (a) xed payments less any
lease incenvesreceivable;(b) variable lease paymentsthat depend on an index or a rate,inially measured using the index or rateas at
the commencement date (c) amounts expected to be payable by the lessee under residual value guarantees; (d) the exercise price of a
purchase opon if the lessee is reasonably certain to exercise that opon and (e) payments of penales for terminang the lease, if the
leaseterm reectsthe lessee exercising an oponto terminatethe lease.
DepreciaononRighttouseassetrecognisedinstatementofprotandLossonastraightlinebasisovertheperiodofleaseandtheGroup
separately recognisesintereston lease liabilityas a componentof nance costin statementof prot andloss.
Annual Report 2022-23 207
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Inventories are stated at lower of cost and net realisable value.
Cost of raw materials and components, stores, spares, consumable tools and traded goods (stock in trade) comprises cost of purchases
and includes taxes and dues and is net of eligible credits under CENVAT / VAT / GST schemes. Cost of work-in-progress, work-made
components and nished goods comprises direct materials, direct labour and an appropriate proporon of variable and xed overheads,
whichisallocatedonasystemacbasis.Costofinventoriesalso includesallotherrelatedcostsincurredinbringing theinventories totheir
presentlocaonand condion.
Netrealisablevaluerepresentstheesmatedsellingpriceforinventorieslessallesmatedcostsofcompleonandcostsnecessarytomake
the sale.
Cost of inventories are determined as follows:
• Raw materialsand components,stores,spares,consumable tools, tradedgoods:on moving weightedaverage basis; and
• Work-in-progress,works-madecomponentsandnishedgoods:onmovingweightedaveragebasisplusappropriateshareofoverheads.
Cost ofsurplus / obsolete/ slow moving inventories areadequately providedfor.
Provisions:
Provisions are recognised when the Group has a present obligaon (legal, contractual or construcve) as a result of a past event, it is
probablethat theGroup will berequiredto sele the obligaon,anda reliable esmatecanbe made of theamount of the obligaon.
The amount recognisedas a provision is the best esmateof the consideraonrequiredto sele the presentobligaon at the end of the
reporng period, taking into account the risks and uncertaines surrounding the obligaon. When a provision is measured using the cash
owsesmated to selethe presentobligaon, its carrying amount is the presentvalue of those cash ows (when the eectof the me
value of money is material).
When some or all of the economic benets required to sele a provision are expected to be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain that reimbursements will be received and the amount of the receivable can be measured reliably.
Provisions for expected cost of warranty obligaons under legislaon governing sale of goods are recognised on the date of sale of the
relevant products at the Management’s best esmate of the expenditure required to sele the obligaon which takes into account the
empirical data on the nature, frequency and average cost of warranty claims and regarding possible future incidences.
A disclosureforconngentliabilies is madewhere thereis apossible obligaonor a presentobligaonthatmayprobably notrequirean
oulowof resources.When thereisa possibleor apresentobligaonwherethelikelihoodofoulow ofresourcesisremote,no provision
or disclosure is made.
Financial assets andnancial liabilies are recognisedwhen theGroup becomesa party to thecontractualprovisionsof the instruments.
Financial assets and nancial liabilies areinially measured atfair value.Transacon coststhat aredirectly aributableto the acquision
orissue ofnancial assetsand nancialliabilies (otherthan nancialassets andnancial liabiliesat fairvaluethroughprotorloss) are
addedtoordeductedfromthefairvalueofthenancialassetsornancialliabilies,asappropriate,oninialrecognion.Transaconcosts
directlyaributabletotheacquisionofnancialassetsornancialliabiliesatfairvaluethroughprotorlossarerecognisedimmediately
inprot or loss.
Financial assets:
Allregularwaypurchasesorsalesofnancialassetsarerecognisedandderecognisedonatradedatebasis.Regularwaypurchasesorsales
are purchases or sales of nancial assets that require delivery of assets within the me frame established by regulaon or convenon in
the marketplace.
The nancial assets are inially measured atfair value. Transaconcosts that aredirectly aributable to the acquision of nancial assets
(exceptfornancialassetscarriedatfairvaluethroughprotorloss)areaddedtothefairvalueofthenancialassetsoninialrecognion.
Transaconcostsof nancial assets carriedat fairvaluethrough protor loss areexpensed in protor loss.
208 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Subsequent measurement:
(i) Financialassets (otherthaninvestmentsandderivaveinstruments)aresubsequentlymeasuredatamorsedcostusingtheeecve
interest method.
Eecveinterestmethodisamethodofcalculangtheamorsedcostofadebtinstrumentandofallocanginterestincomeoverthe
relevantperiod.Theeecveinterestrateistheratethatexactlydiscountsesmatedfuturecashreceipts(includingallfeesandpoints
paidor receivedthat forman integral part of theeecveinterestrate,transaconcosts andother premiumsor discounts) through
theexpected lifeofthe debt instrument,or, whereappropriate,a shorterperiod, tothe net carrying amounton inial recognion.
Investmentsin debtinstruments thatmeet the followingcondionsare subsequentlymeasured atamorsed cost:
• the asset isheld within a business model whoseobjecve is tohold assets in orderto collectcontractualcash ows;and
• the contractual terms of the instrument give rise on specied dates to cash ows that are solely payments on principal and
interest on the principal amount outstanding.
Income on such debtinstruments isrecognised inprot or loss andis included in the “OtherIncome”.
The Group has not designated any debt instruments as fair value through other comprehensive income except in case of debt
instrumentsrelangto nancingacvies.
(ii) Financial assets (i.e. derivave instruments and investments in instruments other than equity of joint ventures and associates) are
subsequently measured at fair value.
Suchnancialassetsaremeasuredatfairvalueattheendofeachreporngperiod,withanygainsorlossesarisingonre-measurement
recognisedin protor loss and includedin the “Other Income”.
The Group measures its investments in equity instruments of joint ventures and associates at cost in accordance with Ind AS 27 and
Ind AS 110.
Business model assessment
The Group determines its business model at the level that best reects how it manages groups of nancial assets to achieve its business
objecve.
TheGroup’sbusinessmodelisnotassessedonaninstrument-by-instrumentbasis,butatahigherlevelofaggregatedporoliosandisbased
on observable factors such as:
a) How the performanceof the business model andthe nancial assets held within thatbusiness model areevaluatedand reportedto
the Group’s key management personnel.
b) The risks that aect the performance of the business model (and the nancial assets held within that business model) and, in
parcular, the waythoserisks aremanaged.
c) How managers of the business are compensated for example, whether the compensaon is based on the fair value of the assets
managed.
d) The expectedfrequency, value andming of sales arealso importantaspects of the Group’sassessment.
Asasecondstepofitsclassicaonprocess,theGroupassessesthecontractualtermsofnancialassettoidenfywhethertheymeetSPPI
test.
‘Principal’ for the purpose of this test is dened as the fair value of the nancial asset at inial recognion and may change over the life
ofnancial asset (forexample,if thereare repayments of principal or amorsaonof the premium/ discount).
Themostsignicantelementsofinterestwithinalendingarrangementaretypicallytheconsideraonforthemevalueofmoneyandcredit
risk. To make the SPPI assessment, the Group applies judgement and considers relevant factors such as the period for which the interest
rate is set.
In contrast, contractual terms that introduce a more than de minimis exposure to risks or volality in the contractual cash ows that are
unrelated to a basic lending arrangement do not give rise to contractual cash ows that are solely payments of principal and interest on
theamount outstanding.In such cases,the nancial asset is requiredtobe measuredat FVTPL.
Annual Report 2022-23 209
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Accordingly, nancial assets aremeasuredas follows:
a) Financial assetscarried atamorsed cost(AC)
A nancial asset is measured at amorsed cost if it is held within a business model whose objecve is to hold the asset in order to
collectcontractualcashowsandthecontractualtermsofthenancialassetgiveriseonspecieddatestocashowsthataresolely
payments of principal and interest on the principal amount outstanding.
b) Financialassets at fairvaluethrough other comprehensiveincome (FVTOCI)
AnancialassetismeasuredatFVTOCIifitisheldwithinabusinessmodelwhoseobjecveisachievedbybothcollecngcontractual
cashows and selling nancial assets and the contractual terms of the nancial asset give rise on specied dates to cashows that
are solely payments of principal and interest on the principal amount outstanding. Since, the loans and advances are held to sale and
collectcontractualcash ows,they aremeasuredat FVTOCI.
c) Financial assets atfair valuethroughprot or loss (FVTPL)
A nancial asset which isnot classied in anyof the abovecategoriesaremeasured atFVTPL.
d) Other equity investments
All other equity investments are measured at fair value, with value changes recognised in Other Comprehensive Income.
In accordance with Ind AS 109, the Group uses ECL model, for evaluangimpairment of nancial assets other than those measured
atfairvalue throughprot andloss (FVTPL).
Expected credit losses are measured through a loss allowance at an amount equal to:
i) The 12-months expectedcredit losses (expectedcreditlosses that result fromthose default eventson the nancial instrument
thatare possiblewithin 12 months aerthe reporngdate); or
ii) Fulllifemeexpectedcreditlosses(expectedcreditlossesthatresultfromallpossibledefaulteventsoverthelifeofthenancial
instrument)
Both LifeTime Expected CreditLoss (LTECL)and 12 months ECLsarecalculated oncollecve basis.
Based on the above, the Group categorises its loans into Stage 1, Stage 2 and Stage 3, as described below:
Whenloansarerstrecognised,theGrouprecognisesanallowancebasedon12monthsECL.Stage1loansincludesthoseloanswhere
thereisno signicantcreditriskobservedand alsoincludes facilieswherethecreditrisk hasbeen improvedandtheloan hasbeen
reclassiedfromstage2 or stage3.
When a loan has shown a signicant increase in credit risk since originaon the Group records an allowance for the life me ECL.
Stage2 loansalso includes facilieswhere the creditrisk has improvedand theloan has been reclassiedfrom stage3.
Loans considered credit impaired are the loans which are past due for more than 90 days. The Group records an allowance for life
meECL.
Loan commitments:
WhenesmangLTECLsforundrawnloancommitments,theGroupesmatestheexpectedporonoftheloancommitmentthatwill
bedrawndownover itsexpectedlife.The ECListhen based onthe presentvalueofthe expectedshorallsincash owsif theloan
is drawn down.
210 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The mechanics of ECLcalculaons areoutlined below and thekeyelements are,as follows:
Probability of Default (“PD”) is an esmate of the likelihood of default over a given me horizon. A default may only happen at a
certainme overthe assessed period, if thefacility hasnot been previouslyderecognised and issll in the porolio.
Exposure at Default (“EAD”) is an esmate of the exposure at a future default date, taking into account expected changes in the
exposureaerthe reporngdate,including repaymentsof principal and interest.
Loss Given Default (“LGD”) is an esmate of the loss arising in the case where a default occurs at a given me. It is based on the
dierence between the contractualcash owsdue and those that the lender would expectto receive,including from the realisaon
ofany collateral. It is usually expressedasa percentageof theEAD.
TheGrouphascalculatedPD,EADandLGDtodetermineimpairmentlossontheporolioofloansanddiscountedatanapproximaon
totheEecveInterest Rate(EIR).Ateveryreporngdate,the abovecalculated PDs,EADandLGDsarereviewedandchangesinthe
forward looking esmatesareanalysed.
The mechanics of the ECLmethod aresummarised below:
The12monthsECLiscalculatedastheporonofLTECLsthatrepresenttheECLsthatresultfromdefaulteventsonanancialinstrument
that are possible within the 12 months aer the reporng date. The Group calculates the 12 months ECL allowance based on the
expectaon of a default occurring in the 12 months following the reporng date. These expected 12-months default probabilies are
appliedto a forecastEAD andmulplied by the expectedLGDand discountedby anapproximaonto theoriginal EIR.
When a loan has shown a signicant increase in credit risk since originaon, the Group records an allowance for the LTECLs. The
mechanics are similar to those explained above, but PDs and LGDs are esmated over the lifeme of the instrument. The expected
cashshoralls arediscountedby an approximaon to theoriginal EIR.
For loans consideredcredit-impaired, the Group recognisesthe lifeme expectedcreditlosses for these loans. The method is similar
tothat forStage2 assets, withthe PD set at100%.
TheECLsforloansandadvancesmeasuredatFVOCIdonotreducethecarryingamountofthesenancialassetsinthebalancesheet,
which remains at fair value. Instead, an amount equal to the allowance that would arise if the assets were measured at amorsed
costisrecognisedinOCI asan accumulatedimpairmentamount,with acorrespondingchargetoprotor loss. Theaccumulatedloss
recognisedin OCIis recycledto the protand loss upon de-recognionof the assets
In its ECL models, the Group relies on a broad rangeof forward looking macroparametersand esmatedthe impact on the default
ata given pointof me.
i) Gross xedinvestment (% of GDP)
ii) Oil price
iii) Interest rates
Financial assets are wrien o when the Group has stopped pursuing the recovery. If the amount to be wrien o is greater than the
accumulated loss allowance, the dierence is rst treated as an addion to the allowance that is then applied against the gross carrying
amount.Anysubsequent recoveriesarecreditedto impairmenton nancial instrumentsin the statementof protand loss.
The Group derecognises a nancial asset when the contractual rights to the cash ows from the asset expire, or when it transfers the
nancial asset and substanally all the risks and rewards of ownership of the asset to another party. If the Group neither transfers
nor retains substanally all the risks and rewards of ownership and connues to control the transferred asset, the Group recognises its
retained interest in the asset and an associated liability for amounts it may have to pay. On de-recognion of a nancial asset in its
enrety,the dierencebetweenthe asset’scarrying amountand thesum of theconsideraonreceivedandreceivableisrecognisedin the
ConsolidatedStatementofprot and loss.
Annual Report 2022-23 211
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
De-recognionof nancial assets due tosubstanalmodicaonof terms andcondion
TheGroupderecognisesanancialasset,suchasaloantoacustomer,whenthetermsandcondionshavebeenrenegoatedtothe
extentthat,substanally,itbecomesanewloan,withthedierencerecognisedasade-recogniongainorloss,totheextentthatan
impairmentlosshas not alreadybeenrecorded.Thenewly recognisedloansareclassied asStage1 forECLmeasurementpurposes.
De-recognionof nancial assets other thandue to substanalmodicaon
A nancial asset (or, where applicable, a part of a nancial asset or part of a group of similar nancial assets) isderecognised when
thecontractualrightstothecashows fromthenancialasset expiresorittransferstherightstoreceivethecontractualcashows
ina transaconin which substanallyall of therisks and rewards of ownershipof the nancial assetare transferredor in which the
Groupneithertransfersnorretainssubstanallyalloftherisksandrewardsofownershipanditdoesnotretaincontrolofthenancial
asset.
On de-recognionof a nancial asset in itsenrety, the dierencebetweenthe carrying amount (measuredat the dateof de-recognion)
and the consideraon received (including any new asset obtained less any new liability assumed) is recognised in the statement of prot
and loss.
Accordingly, gainonsaleor de-recognionofassignedporolioarerecordedupfront inthestatementofprotandlossas perIndAS 109.
Also,the Grouprecognisesservicing income as apercentageof interestspread overtenureof loan incases whereit retainsthe obligaon
toservice the transferred nancial asset.
Debt and equity instruments issued by the Group are classied as either nancial liabilies or as equity in accordance with the substance
ofthe contractualarrangementsand thedenions of a nancial liabilityand an equity instrument.
An equity instrument is any contractthat evidences a residualinterestin the assets of an enty aerdeducng all of its liabilies. Equity
instrumentsissued bya group entyare recognisedatthe proceedsreceived, netof direct issuecosts.
Repurchaseof the Group’s own equity instrumentsis recognised and deducted directly in equity. No gain or loss is recognised in prot or
losson the purchase,sale, issue or cancellaonof the Group’sown equity instruments.
All nancial liabilies (other than derivave instruments) are subsequently measured at amorsed cost using the eecve interest rate
method.
Theeecveinterestmethodisamethodofcalculangtheamorsedcostofanancialliabilityandofallocanginterestexpenseoverthe
relevant period. The eecve interest rateis the ratethat exactlydiscounts esmated future cash payments (including all feesand points
paid or received that form an integral part of the eecve interest rate, transacon costs and other premiums or discounts) through the
expectedlifeof thenancial liability, or (whereappropriate)a shorterperiod, to the netcarrying amount oninial recognion.
Interest expense that is not capitalised as part of cost of an asset is included in the “Finance Costs”.
Financial guarantee contracts
A nancialguaranteecontract is acontractthatrequiresthe issuertomakespecied paymentstoreimbursetheholder foraloss it incurs
becausea specied debtorfails tomakepaymentswhen due inaccordance with theterms of adebt instrument.
FinancialguaranteecontractsissuedbytheGroupareiniallymeasuredattheirfairvaluesandaresubsequentlymeasured(ifnotdesignated
asat FVTPL) atthe higher of:
• the amountof loss allowance determinedin accordancewith impairmentrequirementsof Ind AS 109;and
• the amountinially recognised less,when appropriate,the cumulaveamount ofincome recognised.
The Group derecognises nancial liabilies when, and only when, the Group’s obligaons are discharged, cancelled or have expired. An
exchangewithalenderofdebtinstrumentswithsubstanallydierenttermsisaccountedforasanexnguishmentoftheoriginalnancial
liability and the recognion of a new nancial liability. Similarly, a substanal modicaon of the terms of an exisng nancial liability
(whetheror not aributableto the nancial dicultyof the debtor) isaccounted foras anexnguishment of theoriginal nancial liability
and the recognion of a new nancial liability. The dierencebetween the carrying amount of the nancial liability derecognised and the
consideraon paid and payableis recognisedin protor loss.
212 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The Group enters into a varietyof derivavenancial instruments to manageits exposure tointerestrateand foreignexchangerate risks,
including foreignexchangeforwardcontractsand cross currency interest rateswaps. Further details of derivave nancial instruments are
disclosed in Note 3.6.
Derivaves are inially recognised at fair value at the date the derivave contracts are entered into and are subsequently remeasured to
theirfairvalueattheendofeachreporngperiod.Theresulnggainorlossisrecognisedinprotorlossimmediatelyunlessthederivave
isdesignatedandeecveasahedging instrument,inwhicheventthemingoftherecognioninprotor lossdependsonthe natureof
thehedging relaonship andthe natureof the hedged item.
Derivavesembedded in non-derivavehost contractsthatare not nancial assetswithin the scope of IndAS 109 are treatedas separate
derivaveswhentheirrisksandcharacteriscsarenotcloselyrelatedtothoseofthehostcontractsandthehostcontractsarenotmeasured
atFVTPL.
Financial assetswith embedded derivaves areconsideredin their enretywhendeterminingwhether their cashowsare solelypayment
ofprincipalandinterest.Derivavesembeddedinallotherhostcontractareseparatedonly iftheeconomiccharacteriscsand risksofthe
embedded derivave are not closely related to the economic characteriscs and risks of the host and are measured at fair value through
protor loss.
As ofthe transiondate,the Grouphasassessed whetheran embedded derivaveis requiredtobe separatedfromthe hostcontractand
accountedforasaderivaveonthebasisofthe condionsthatexistedonthelaterofthedateofitrstbecomingapartytothecontract
and the datewhen there has been change in the terms of the contractthat signicantlymodies the cashows that otherwise would be
required under the contract.
The Group designates certain derivaves as hedging instruments in respect of foreign currency risk, as either fair value hedges, cash ow
hedges.Hedges of foreignexchangerisk on rmcommitments areaccountedforas cash owhedges.
At the incepon of the hedge relaonship, the enty documents the relaonship between the hedging instrument and the hedged item,
alongwithits riskmanagementobjecvesandits strategyforundertakingvarioushedgetransacons.Furthermore,attheincepon ofthe
hedgeandonanongoingbasis,theGroupdocumentswhetherthehedginginstrumentishighlyeecveinosengchangesinfairvalues
orcash owsof the hedged itemaributableto the hedgedrisk.
Note 3.6sets out detailsof the fairvaluesof the derivaveinstrumentsused forhedging purposes.
Fair value hedges
Changes infair valueof the designatedporon of derivavesthatqualify as fairvalue hedgesare recognisedin protor loss immediately,
togetherwith any changes in the fairvalue of the hedged asset or liability that are aributableto the hedged risk. The change in the fair
valueofthedesignatedporonofhedginginstrumentandthechangeinthe hedgeditemaributabletothe hedgedriskarerecognisedin
protor loss inthe line item relangtothe hedged item.
Hedge accounng is disconnued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualies
for hedge accounng. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amorsed to
protor loss fromthat date.
The eecveporon of changes in the fair value of derivaves that aredesignated and qualify as cash ow hedges is recognised in other
comprehensiveincomeand accumulatedunder the heading of cashow hedge reserve.The gainor loss relangtothe ineecveporon
isrecognised immediatelyin protor loss, and isincluded in the “OtherIncome” line item.
Amounts previouslyrecognised in other comprehensiveincome and accumulatedin equity relang toeecveporon as described above
arereclassiedtoprotorlossintheperiodswhen thehedgeditemaectsprotorloss, inthesameline astherecognisedhedgeditem.
However,when thehedgedforecasttransacon resultsinthe recognionofanon-nancialasset oranon-nancial liability, suchgainsand
losses aretransferred fromequity (but not as a reclassicaonadjustment) andare included in the inial measurementof the costof the
non-nancialasset or non-nancialliability.
Hedge accounng is disconnued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualies
forhedgeaccounng.Anygainorlossrecognisedinothercomprehensiveincomeandaccumulatedinequityatthatmeremainsin equity
andisrecognisedwhentheforecasttransacon isulmatelyrecognised inprotorloss.Whenaforecasttransaconisno longerexpected
tooccur,the gain orloss accumulatedin equity is recognisedimmediatelyin prot orloss.
Annual Report 2022-23 213
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The Group’s operang segment is idened as business segment based on nature of products, risks, returns and the internal business
reporngsystemasperIndAS108. TheGroupisengagedinthebusinessofmanufacturingofCommercialVehiclesand renderingFinancial
Services mainly relangtovehicle and housingnancing.
Non-current assets or disposal groups are classied as held for sale if their carrying amount will be recovered principally through a sale
transaconratherthanthroughconnuinguse. Thiscondion isregardedasmet onlywhen theasset isavailableforimmediatesalein its
presentcondionsubject only to termsthat areusual and customaryforsales of such assetand its sale is highly probable.
Non-current assets and disposal groups classied as held for sale are measured at the lower of their carrying amount and fair value less
coststosellanddisclosedseparatelyinbalancesheet.Liabiliesassociatedwithassetsclassiedasheldforsaleareesmatedanddisclosed
separately in the balance sheet.
The Group considers factorsincluding materiality, the nature and funcon of the items of income and expense in determining exceponal
itemand discloses the samein Note 2.7 tothe nancial statements.
The preparaon of consolidated nancial statements in conformity with Ind AS requires the Group’s Management to make judgments,
esmatesand assumponsaboutthe carryingamountsof assetsand liabiliesrecognisedin theconsolidatednancialstatementsthatare
not readily apparent from other sources. The judgements, esmates and associated assumpons are based on historical experience and
other factors including esmaon of eects of uncertain future events that are considered to be relevant. Actual results may dier from
theseesmates.
Theesmatesandunderlyingassumponsarereviewedonanongoingbasis.Revisionstoaccounngesmates(accountedonaprospecve
basis) arerecognised in the period in which the esmate isrevised if the revisionaectsonly that period, or in the period of the revision
andfuture periods if therevision aectsbothcurrent andfuture periods.
Thefollowingarethe cricaljudgementsandesmaonsthathavebeenmade bytheManagementin theprocessof applyingtheGroup’s
accounngpoliciesandthathavethemostsignicanteectontheamountsrecognisedintheconsolidatednancialstatementsand/orkey
sources of esmaon uncertainty at the end of the reporng period that may have a signicant risk of causing a material adjustment to
thecarrying amounts of assetsand liabilies within the nextnancial year.
Impairment of goodwill
The carrying amount of goodwill signicant to the Group are stated in Note 3.14. The recoverableamounts have been determined based
onvalueinusecalculaonswhichusescashowprojeconscoveringgenerallyaperiodofveyears(whicharebasedonkeyassumpons
such as margins, expected growth rates based on past experience and Management’s expectaons/ extrapolaon of normal increase/
steadyterminal growth rate which approximates the long term industry growth rates)and appropriatediscount rates that reects current
marketassessmentsofmevalueofmoneyandrisksspecictotheseinvestments.TheManagementbelievesthatanyreasonablepossible
change in key assumpons on which recoverable amount is based is not expected to cause the aggregate carrying amount to exceed the
aggregaterecoverableamountofthe cashgenerangunit.Duringtheyear,basedon theimpairmentassessmentcarriedoutbytheGroup,
the Management has determined that one of the subsidiary requires an impairment.
The measurement of impairment losses across all categories of nancial assets requires judgement, in parcular, the esmaon of the
amount and ming of future cash ows and collateral values when determining impairment losses and the assessment of a signicant
increasein creditrisk. These esmatesaredriven bya number of factors,changes in which canresult indierentlevelsof allowances.
TheGroup’sexpectedcreditloss(“ECL”)calculaonsareoutputsofcomplexmodelswithanumberofunderlyingassumponsregardingthe
choiceofvariableinputsandtheirinterdependencies.ElementsoftheECLmodelsthatareconsideredaccounngjudgementsandesmates
include:
a) The Group’s criteria for assessing if there has been a signicant increase in credit risk and so allowances for nancial assets should
bemeasured on alife meexpected creditloss (“LTECL”) basis.
b) Developmentof ECL models,including the variousformulas and thechoice of inputs.
c) Determinaon of associaons between macroeconomic scenarios and economic inputs, such as gross domesc products, lending
interestratesandcollateralvalues, andthe eectonprobabilityof default(“PD”), exposureatdefault(“EAD”)and loss givendefault
(“LGD”).
d) Selecon of forward-looking macroeconomicscenarios and their probability, to derivethe economic inputsinto ECLmodels.
214 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Inventories
An inventory provision is recognised for cases where the realisable value is esmated to be lower than the inventory carrying value. The
inventoryprovisionisesmatedtakingintoaccountvariousfactors,includingprevailingsalespricesofinventoryitem,changesintherelated
laws / emission norms and losses associated with obsolete / slow-moving / redundant inventory items. The Group has, based on these
assessments, made adequate provision in the books.
DeterminingofincometaxliabiliesusingtaxratesandtaxlawsthathavebeenenactedorsubstanallyenactedrequirestheManagement
to esmate the level of tax that will be payable based upon the Group’s/ expert’s interpretaon of applicable tax laws, relevant judicial
pronouncementsand anesmaon of thelikelyoutcomeof any opentax assessmentsincluding ligaonsor closuresthereof.
Deferred income tax assets are recognizedto the extent that it is probable that future taxable income will be available against which the
deducbletemporary dierences, unused taxlosses, unabsorbed depreciaonand unused taxcreditscould be ulized.
Provision for product warranty
The Group’s product warranty obligaons and esmaons thereof are determined using historical informaon on the type of product,
nature,frequency and average cost of warranty claims and the esmatesregarding possible futureincidences of productfailures. Changes
inesmatedfrequency and amountof future warranty claims, which areinherentlyuncertain, canmaterially aectwarrantyexpense.
Some of the Group’s assets and liabilies are measured at fair value for nancial reporng purposes. The Management determines the
appropriatevaluaon techniquesand inputs forthe fairvalue measurements.
In esmang the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where Level 1
inputsarenotavailable,theGroupengagesthirdpartyqualiedvaluerstoperformthevaluaons.TheManagementworkscloselywiththe
qualiedexternal valuerstoestablishthe appropriatevaluaontechniques and inputsto the model.
Informaon about the valuaon techniques and inputs used in determining the fair value of various assets and liabilies are disclosed in
Note 3.6.
Classicaon and measurement of nancial assets depends on the results of business model and the solely payments of principal and
interest (“SPPI”) test. The Group determines the business model at a level that reects how groups of nancial assets are managed
togetherto achieve a parcular business objecve. This assessment includes judgement reecng all relevant evidence including how the
performanceoftheassetsisevaluated andtheirperformancemeasured,therisksthataecttheperformanceoftheassetsandhowthese
are managed and how the managers of the assets are compensated. The Group monitors nancial assets measured at amorsed cost or
fair value through other comprehensive income that are derecognised prior to their maturity to understand the reason for their disposal
andwhether the reasonsare consistentwith theobjecve of the business forwhich theasset was held. Monitoringis part of the Group’s
connuousassessmentofwhether thebusiness modelforwhichthe remainingnancialassets areheldconnuestobe appropriateandif
itis not appropriatewhether therehas been achange inbusiness model and soa prospecvechangeto theclassicaon ofthose assets.
Annual Report 2022-23 215
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
through business
Charge during
the year
Freehold land 779.07 42.55 6.26 2.94 - 830.82 - - - - - 830.82
Buildings 1,961.63 44.39 12.13 10.46 (7.24) 2,021.37 468.18 84.30 2.74 (7.23) 547.99 1,473.38
Buildings given on lease 13.24 - - - - 13.24 1.79 0.29 - - 2.08 11.16
Plant and equipment 5,717.80 293.94 17.29 7.03 (19.89) 6,016.17 2,854.52 464.60 5.08 (17.27) 3,306.93 2,709.24
Plant and equipment given on lease 0.04 - - - - 0.04 0.02 # - - 0.02 0.02
Furnitureand ngs 117.25 6.11 7.36 1.35 (1.91) 130.16 86.45 8.31 1.23 (1.80) 94.19 35.97
Furnitureand ngs givenon lease 0.25 - - - - 0.25 0.25 - - - 0.25 -
Vehicles including electric vehicles 139.58 164.33 0.05 1.20 (8.05) 297.11 87.31 15.76 0.93 (7.45) 96.55 200.56
Aircra givenon lease 77.99 - - - - 77.99 54.17 9.74 - - 63.91 14.08
Commercial vehicles given on lease - 14.96 - - - 14.96 - 0.11 - - 0.11 14.85
OceEquipment 240.97 41.44 1.93 (7.36) (4.68) 272.30 178.28 29.15 (4.29) (4.08) 199.06 73.24
Electrical and other installaons on lease
hold premises 1.47 0.03 - - - 1.50 1.17 0.04 - - 1.21 0.29
TOTAL
Capitalised during
Capital work-in-progress (CWIP) 139.38 571.22 (571.45) 139.15
*Adjustments include currencymovementsrelangto foreignoperaons.
** Amount of ` 36.30 crores directly capitalised in Property, plant and equipment.
CWIP Ageing Schedule
Amount in CWIP for a period of
Less than
More than
Total
Projects in progress 124.77 3.8 0.42 10.16 139.15
Oftheabove,therearenoprojectswherethecosthasexceededthebudget.Projectswhosecompleon(temporarilysuspended) isdelayedis asfollows:
To be Completed In
Less than
More than
Total
Projectrelangto certainfacilies/ infrastructuredevelopment 10.44 - - - 10.44
#amount is below roundingo norms adoptedby the Group.
216 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Title deeds of Freehold land not held in the name of the Group
` Crores
Sl
No
Asset Class Address
Total
carrying value
Reason for not in the name of the
Parent Company
Property in
the name of
1 Ennore, Tamil Nadu Freehold Land Kathivakkam High
Road, Ennore,
Chennai 600 057
35.22 81.00 This land was acquired from Hinduja
Foundries Limited by the Parent Company
by virtue of the amalgamaon order
passed by the Naonal Company Law
Tribunal, Chennai. The name change in
therecordsofregistrar hastobeeected.
Hinduja Foundries
Limited (merged with
Ashok Leyland Limited)
2 Uppal, Telangana Freehold Land Industrial
DevelopmentArea,
Uppal, Ranga Reddy
District,
Telangana
15.36 123.00 This land was acquired from Hinduja
Foundries Limited by the Parent Company
by virtue of the amalgamaon order
passed by the Naonal Company Law
Tribunal, Chennai. The name change in
therecordsofregistrar hastobeeected.
Hinduja Foundries
Limited (merged with
Ashok Leyland Limited)
3 Mallavalli, Andhra Pradesh Freehold Land Plot no. 2 & 3of
Model Industrial
Park situated at
Mallavalli Village,
Bapulapadu Mandal,
KrishnaDistrict
75.00 13.02 TheAgreementforSalehasbeenregistered
in the name of the Parent Company. The
ConveyanceDeedistobeexecutedbythe
Authority upon fulllment of the certain
condionsby the ParentCompany.
Agreement for sale
registered in the name
of the Parent Company.
Final Conveyance deed
is to be executed.
Notes:
1. Cost of Buildings pertaining to Parent Company as at March 31, 2023 includes:
a) `0.03 croresbeing costof shares inHousing Co-operaveSociety represenng ownership rightsin residenalats andfurniture and ngs thereat.
b) ` 1.32croresrepresenngcostof residenalats including undivided interest in land.
2. For details of assets given as security against borrowings, Refer Note 3.13.
3. Foramount of contractualcommitments forthe acquision of PPE,ReferNote3.12 (a).
4. Title toFreehold Land relangtoa subsidiary at Jainamore,Jharkhand (carrying value` 0.08 crores) is yet to be conveyed to the subsidiary.
5. Expenses capitalised `Nil - ReferNotes 2.3, 2.4and 2.6 to theConsolidatedFinancial statements.
6. The gross carrying value and net carrying value of buildings located on freehold and leasehold land for which tle is yet to be transferred in the name of the Parent Company
amounts to ` 221.78 crores and ` 186.61croresrespecvely.
Annual Report 2022-23 217
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
as assets
held for Sale
Charge
during the
year
as assets
held for Sale
Freehold land 793.58
0.64 - - (15.15) 779.07
-
-
-
- -
- 779.07
Buildings 1,938.70 33.71 4.44 (0.98) (14.24) 1,961.63 399.57 81.88 1.02 (14.20) (0.09) 468.18
1,493.45
Buildings given on lease 13.24 - - - - 13.24 1.50 0.29 - - - 1.79
11.45
Plant and equipment 5,470.30 302.33 0.13 (0.41) (54.55) 5,717.80 2,439.95 467.93 0.41 (53.74) (0.03) 2,854.52
2,863.28
Plant and equipment given on lease 0.04 - - - - 0.04 0.02
#
- - - 0.02
0.02
Furnitureand ngs 119.77 2.51 (0.90) (0.12) (4.01) 117.25 80.88 9.62 (0.13) (3.89) (0.03) 86.45
30.80
Furnitureand ngs givenon lease 0.25 - - - - 0.25 0.25 - - - - 0.25 -
Vehicles including electric vehicles 197.90 38.66 (2.51) (84.93) (9.54) 139.58 88.30 23.26 (0.26) (6.21) (17.78) 87.31 52.27
Aircragiven on lease 77.99 - - - - 77.99 44.43 9.74 - - - 54.17 23.82
OceEquipment 227.43 17.68 0.64 (0.06) (4.72) 240.97 154.38 28.57 (0.12) (4.54) (0.01) 178.28 62.69
Electrical and other installaons on lease hold
premises 1.47 - - - - 1.47 1.13 0.04 - - - 1.17
0.30
TOTAL
Capitalised
Capital work-in-progress (CWIP) 233.27 250.40 (343.48) (0.81) 139.38
*Adjustments include currencymovementsrelangto foreignoperaons.
** Amount of ` 52.05 crores directly capitalised in Property, plant and equipment.
CWIP Ageing Schedule
Amount in CWIP for a period of
Total
Projects in progress 125.26 2.57 2.22 9.33 139.38
Ofthe above, thereareno projects wherethe costhas exceededthe budget.Projectswhose compleon isdelayedis as follows:
To be Completed In
Total
Projectrelangto certainfacilies/ infrastructuredevelopment 10.54 - - - 10.54
#amount is below roundingo norms adoptedby the Group.
218 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Title deeds of Freehold land not held in the name of the Group
` Crores
Sl
No
Asset Class Address
Total
value
Reason for not in the name of the
Parent Company
Property in
the name of
1 Ennore, Tamil Nadu Freehold Land Kathivakkam
High Road,
Ennore, Chennai
600057
35.22 81.00 This land was acquired from Hinduja
Foundries Limited by the Parent Company
by virtue of the amalgamaon order
passed by the Naonal Company Law
Tribunal, Chennai. The name change in
therecordsofregistrar hastobeeected.
Hinduja Foundries
Limited (merged with
Ashok Leyland Limited)
2 Uppal, Telangana Freehold Land Industrial
DevelopmentArea,
Uppal, Ranga Reddy
District,
Telangana
15.36 123.00 This land was acquired from Hinduja
Foundries Limited by the Parent Company
by virtue of the amalgamaon order
passed by the Naonal Company Law
Tribunal, Chennai. The name change in
therecordsofregistrar hastobeeected.
Hinduja Foundries
Limited (merged with
Ashok Leyland Limited)
3 Mallavalli, Andhra Pradesh Freehold Land Plot no. 2 & 3of
Model Industrial
Park situated at
Mallavalli Village,
Bapulapadu Mandal,
KrishnaDistrict
75.00 13.02 TheAgreementforSalehasbeenregistered
in the name of the Parent Company. The
ConveyanceDeedistobeexecutedbythe
Authority upon fulllment of the certain
condionsby the ParentCompany.
Agreement for sale
registered in the name
of the Parent Company.
Final Conveyance deed
is to be executed.
Notes:
1. Cost of Buildings pertaining to Parent Company as at March 31, 2022 includes:
a) `0.03 croresbeing costof shares inHousing Co-operaveSociety represenng ownership rightsin residenalats andfurniture and ngs thereat.
b) ` 1.32croresrepresenngcostof residenalats including undivided interest in land.
2. For details of assets given as security against borrowings, Refer Note 3.13.
3. Foramount of contractualcommitments forthe acquision of PPE,ReferNote3.12 (a).
4. Title toFreehold Land relangtoa subsidiary at Jainamore,Jharkhand (carrying value` 0.08 crores) is yet to be conveyed to the subsidiary.
5. Expenses capitalised `Nil - ReferNotes 2.3, 2.4and 2.6 to theConsolidatedFinancial statements.
6. The gross carrying value and net carrying value of buildings located on freehold and leasehold land for which tle is yet to be transferred in the name of the Parent Company
amounts to ` 217.76 crores and ` 191.20croresrespecvely.
Annual Report 2022-23 219
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
Net Carrying
Amount
Charge during the
year
Net Carrying
Amount
Leasehold land 316.78 44.74 (0.01) 54.15 20.30 287.06
Buildings 51.66 13.21 0.56 0.37 18.99 46.07
Plant and equipment 6.46 - - - 1.00 5.46
Vehicles 16.45 1.46 0.07 - 7.11 10.87
Computersoware 35.94 32.48 - 4.92 13.62 49.88
TOTAL
**Adjustments include currencymovementsrelangto foreignoperaons.
Title deeds of leasehold land not held in the name of the Group ` Crores
SL
No
Property
Asset Class Address
Total Acres
Gross
carrying
Net
carrying
Reason for not in the name
of the Parent Company
Property in the
name of
1. Sriperumbudur,
Tamil Nadu
Leasehold Land Plot Nos. Phase
II,K-1, K-2
SIPCOTIndustrial
Park,
Sriperumbudur,
Tamil Nadu
79.44 11.47 10.63 TheleaseholdrightswereoriginallygrantedtoHindujaFoundries
LimitedbyStateIndustriesPromoonCorporaonofTamilnadu
LimitedandacquiredbytheParentCompanyvideamalgamaon
order passed by the Naonal Company Law Tribunal, Chennai.
Thename changein therecordsofregistrarhasto beeected.
Hinduja Foundries
Limited (merged
with Ashok Leyland
Limited)
2. Pillaipakkam,
Tamil Nadu
(Refer Sub-Note 6)
Leasehold Land Plot No.A-
1/ASIPCOT
Industrial Park,
Pillaipakkam,
Sriperumbudur,
Tamil Nadu
113.00 48.96 46.38 The leasehold rights were originally granted to Ashok Leyland
Nissan Vehicles Limited by State Industries Promoon
Corporaon of Tamilnadu Limited and acquired by the Parent
Company vide amalgamaon order passed by the Naonal
Company Law Tribunal, Chennai. The name change in the
records of registrarhasto be eected.
Ashok Leyland
Nissan Vehicles
Limited
(merged with
Ashok Leyland
Limited)
3. Bhandara,
Maharashtra
Leasehold Land P O Box 15,
PlotNo.1, MIDC
Industrial Area,
Gadegao Lakhani
Taluk, Bhandara,
Maharashtra
15.82 0.01 0.01 ThisisalandleasedtotheParentCompanybytheMaharashtra
Industrial development Corporaon. However, a poron of the
land(6.40 hectares)occupied andused by theParentCompany
for factory building has been considered unauthorised being a
Forest Land. The ParentCompany had approachedthe Mumbai
High Court and subsequently pursuant to its orders has applied
for the regularisaon of the said poron of forest land in
exchange of alternateland foraorestaon.
Ashok Leyland
Limited (under
regularisaon)
Notes:
1. Escalaonclause - the percentageof escalaon isup to a maximumof 15%.
2. Discounngrateused forthe purpose of compungright touse asset rangesfrom2.00% to8.50%.
3. Rental amount per annum ranges from ` 0.01 crores to ` 5.00 crores, which also carries a clause for extension of agreement based on mutual understanding between Lessor and
Lessee.
4. The lease periodrangesfrom 2 yearsto 90 yearsoverwhich the rightto use assetis depreciatedon a straight line basis.
5. Leasetermsarenegoatedonanindividualbasis andcontainawiderangeofdierenttermsandcondions.Theleaseagreementsdonotimpose anymajorcovenantsother than
the security interests in the leased assets that are held by the lessor. Leased assets are not used as security for borrowing purposes.
6. During the year a poron of leasehold land has been surrendered toState IndustriesPromoon Corporaonof Tamil Nadu (SIPCOT)and surrender value is receivedby the Parent
Company. The ParentCompany isin the processof registeringthe modied leasedeed forthe balance poron of leasehold land.
7. The lease agreementsis forcompositeuse of infrastructureand doesn’t seggregatebetween theuse of the class ofunderlying assets.
220 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
Net Carrying
Amount
Charge during the
year
Net Carrying
Amount
Leasehold land 316.29 10.21 2.29 - - 12.01 316.78
Buildings 63.10 17.82 (0.14) 2.59 5.87 20.66 51.66
Plant and equipment 7.47 - - - - 1.01 6.46
Vehicles 3.98 17.49 0.42 - - 5.44 16.45
Computersoware 26.32 19.56 0.90 - - 10.84 35.94
TOTAL
**Adjustments include currencymovementsrelangto foreignoperaons.
Title deeds of leasehold land not held in the name of the Group ` Crores
SL
No
Property
Asset Class Address
Total Acres
Gross
carrying
Net carrying
value
Reason for not in the name
of the Parent Company
Property in the
name of
1. Sriperumbudur,
Tamil Nadu
Leasehold Land Plot Nos. Phase
II,K-1, K-2
SIPCOTIndustrial
Park,
Sriperumbudur,
Tamil Nadu
79.44 11.47 10.77 TheleaseholdrightswereoriginallygrantedtoHindujaFoundries
LimitedbyStateIndustriesPromoonCorporaonofTamilnadu
LimitedandacquiredbytheParentCompanyvideamalgamaon
order passed by the Naonal Company Law Tribunal, Chennai.
Thename changein therecordsofregistrarhasto beeected.
Hinduja Foundries
Limited (merged
with Ashok Leyland
Limited)
2. Pillaipakkam,
Tamil Nadu
Leasehold Land Plot No.A-
1/ASIPCOT
Industrial Park,
Pillaipakkam,
Sriperumbudur,
Tamil Nadu
210.00 90.99 87.16 The leasehold rights were originally granted to Ashok Leyland
Nissan Vehicles Limited by State Industries Promoon
Corporaon of Tamilnadu Limited and acquired by the Parent
Company vide amalgamaon order passed by the Naonal
Company Law Tribunal, Chennai. The name change in the
records of registrarhasto be eected.
Ashok Leyland
Nissan Vehicles
Limited
(merged with
Ashok Leyland
Limited)
3. Bhandara,
Maharashtra
Leasehold Land P O Box 15,
PlotNo.1, MIDC
Industrial Area,
Gadegao Lakhani
Taluk, Bhandara,
Maharashtra
15.82 0.01 0.01 ThisisalandleasedtotheParentCompanybytheMaharashtra
Industrial development Corporaon. However, a poron of the
land(6.40 hectares)occupied andused by theParentCompany
for factory building has been considered unauthorised being a
Forest Land. The ParentCompany had approachedthe Mumbai
High Court and subsequently pursuant to its orders has applied
for the regularisaon of the said poron of forest land in
exchange of alternateland foraorestaon.
Ashok Leyland
Limited (under
regularisaon)
Notes:
1. Escalaon clause -the percentageof escalaonis up toa maximumof 15%.
2. Discounng rate used forthe purpose of compungright to useasset rangesfrom1.83% to 8.30%.
3. Rental amount per annum ranges from ` 0.01 crores to ` 5.00 crores, which also carries a clause for extension of agreement based on mutual understanding between Lessor and
Lessee.
4. The lease period rangesfrom2 yearsto 90yearsover which theright touse asset is depreciatedona straightline basis.
5. Leasetermsarenegoatedonanindividualbasis andcontainawiderangeofdierenttermsandcondions.Theleaseagreementsdonotimpose anymajorcovenantsother than
the security interests in the leased assets that are held by the lessor. Leased assets are not used as security for borrowing purposes.
6. Leasetermsarenegoatedonanindividualbasis andcontainawiderangeofdierenttermsandcondions.Theleaseagreementsdonotimpose anymajorcovenantsother than
the security interests in the leased assets that are held by the lessor. Leased assets are not used as security for borrowing purposes.
Annual Report 2022-23 221
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
AMORTISATION
Other Intangible Assets
through
business
Charge
during the
year
Computersoware
- Developed 114.57 - - - - 114.57 105.08 5.44 - - 110.52 4.05
- Acquired 181.75 17.53 5.08 10.54 (5.27) 209.63 153.11 17.08 7.32 (0.19) 177.32 32.31
Technical knowhow
- Developed 1,649.82 159.36 - 13.02 (0.76) 1,821.44 595.95 179.23 6.23 (0.76) 780.65 1,040.79
- Acquired 40.48 28.09 - 0.36 - 68.93 14.17 21.90 0.36 - 36.43 32.50
Customerrelaonships - - 60.99 - - 60.99 - 2.49 - - 2.49 58.50
Trademark - - 23.38 - - 23.38 - 0.76 - - 0.76 22.62
TOTAL
Capitalised during
Intangible assets under development 100.63 227.66 (199.32) 128.97
*Adjustments include currencymovementsrelangto foreignoperaons.
** Amount of ` 5.66 crores directly capitalised in Intangible assets.
Total
Projects in progress 47.53 17.01 3.16 - 67.70
Projects temporarily suspended 36.04 3.63 - 21.60 61.27
Ofthe above, thereareno projects wherethe costhas exceededthe budget.Projectswhose compleon isdelayed(includes temporarilysuspended projects)is as follows:
To be Completed In
Total
Projectsrelangto Technical knowhow- Productdevelopment 46.37 - - - 46.37
Notes:
1. Addions toOther Intangibleassets and Intangibleassets under developmentinclude:
a) Expenses capitalised ` 201.22 crores- ReferNotes2.3, 2.4 and 2.6to the Financial Statements.
2. Foramount of contractualcommitments forthe acquision of intangibleassets,ReferNote3.12 (a).
222 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
AMORTISATION
Other Intangible Assets
Charge
during the
year
Computersoware
-Developed 99.68 - 14.89 - 114.57 88.76 16.52 (0.20) - 105.08 9.49
- Acquired 189.04 11.57 (18.12) (0.74) 181.75 132.50 22.26 (0.91) (0.74) 153.11 28.64
Technical knowhow
- Developed 1,588.33 115.62 (9.15) (44.98) 1,649.82 494.17 147.79 (1.12) (44.89) 595.95 1,053.87
- Acquired 40.48 - - - 40.48 6.07 8.10 - - 14.17 26.31
TOTAL
Capitalised during
Intangible assets under development 102.27 108.77 (110.41) 100.63
*Adjustments include currencymovementsrelangto foreignoperaons.
** Amount of ` 16.78 crores directly capitalised in Intangible assets.
Total
Projects in progress 52.74 12.94 19.77 11.76 97.21
Projects temporarily suspended - 3.42 - - 3.42
Ofthe above, thereareno projects wherethe costhas exceededthe budget.Projectswhose compleon isdelayedis as follows:
To be Completed In
Total
Projectsrelangto Technical knowhow- Productdevelopment 54.80 - - - 54.80
Notes:
1. Addions toOther Intangibleassets and Intangibleassets under developmentinclude:
a) Expenses capitalised ` 100.70 crores- ReferNotes2.3, 2.4 and 2.6to the Financial Statements.
2. Foramount of contractualcommitments forthe acquision of intangibleassets,ReferNote3.12 (a).
Annual Report 2022-23 223
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Nos. ` Crores Nos. ` Crores
`
Ashok LeylandDefenceSystemsLimited(ReferSub-Note3)
Costof Acquision (including goodwillof `0.02 crores) 50,27,567 5.03 50,27,567 5.03
Add: Group shareof prot 10.06 8.57
Less:Dividend Income 0.60 -
Carrying amount of Investment
Mangalam Retail Services Limited
Costof Acquision (including goodwillof `0.01 crores) 37,470 0.04 37,470 0.04
Add: Group shareof Prot# - -
Carrying amount of Investment
Lanka Ashok Leyland PLC (Quoted)
Costof Acquision (including goodwillof `0.21 crores) 10,08,332 0.57 10,08,332 0.57
Add: Group shareof Prot 20.93 21.81
Less:Dividend Income 0.22 0.07
Carrying amount of Investment
`
Ashley Alteams India Limited (Refer Sub-Note 3)
Costof Acquision 7,59,47,500 46.51 7,59,47,500 46.51
Less : Group share of Loss 33.98 42.75
Carrying amount of Investment
Ashok Leyland JohnDeere ConstruconEquipment Company
PrivateLimited (under liquidaon)
Costof Acquision 1,77,92,123 17.81 1,77,92,123 17.81
Less : Group share of Loss 11.27 11.27
Less: Impairment in value of investment 6.54 6.54
Carrying amount of Investment
ZebeyondLimited
Costof Acquision 150 8.84 -
Less : Group share of Loss 0.45 -
Carrying amount of Investment
`
ARS Energy Private Limited - - 640 0.01
Rajalakshmi Wind Energy Limited (formerly Ashok Leyland
Wind Energy Limited) 78,12,950 9.12 78,12,950 9.12
Chennai Willingdon CorporateFoundaon(Cost ` 900) 100 # 100 #
Hinduja Energy (India) Limited (Refer Sub-Note 7) 6,11,47,058 147.00 6,11,47,058 81.33
KamachiIndustries Limited 5,25,000 - 5,25,000 0.53
Prathama Solarconnect Energy Private Limited 1,86,56,912 18.67 1,86,56,912 18.67
HR Vaigai Private Limited (Cost ` 26,000) 2,600 # - -
`
Adyar Property Holding Co. Limited (` 65 paid up)
[Cost ` 19,500] # 300 0.00 300 0.00
A
224 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Nos. ` Crores Nos. ` Crores
Associates
`
AshokLeyland DefenceSystemsLimited B 1,00,00,000 6.93 1,00,00,000 6.89
Non-converbleRedeemable Debentures(relangto nancingacvies)
(atamorsed cost) C 57.40 37.79
Non-converbleRedeemable Debentures(relangto nancingacvies)
(atamorsed cost) 54.18 -
57.43 50.58
F 172.35 221.87
G 699.82 480.41
H 36.73 30.02
Vasuki SCSp (Refer sub note 5) I 24.65 21.56
#Amount is below roundingo norms adoptedby theGroup.
Notes:
1.
` Crores ` Crores
Aggregate value of quoted investments 112.19 52.33
Aggregate value of unquoted investments 1,235.36 952.70
Aggregate value of impairment in value of investments 6.54 6.54
2. Investments are fully paid-up shares unless otherwise stated.
3. The equity investments in a joint venture company can be transferred / pledged / disposed o / encumbered only with the consent of
banks / nancial instuons who have given loans to the joint venture company. The equity investments in certain associates can be
disposedo only with the consentof banks /nancial instuons who havegivenloans to thesecompanies.
4. Numberof shares heldby the Groupincludes joint holding /benecial holding.
5. TheGroup holds 9.09%of Class A units in thespecial limited partnership.
6. The investments made by the Group is in compliance with secon 180 and 186 with respect to layers of investmentpermied under the
Companies Act, 2013.
7. The Parent Company has recorded a gain on fair valuaon of equity investment in Hinduja Energy (India) Limited (HEIL) amounng to
` 65.67 crores (March 31, 2022: loss on fair valuaon ` 107.13 crores) under exceponal item based on business plan of HEIL, external
factors and theindependent valuersreport.The ParentCompanyhas used discountedcashow methodforarriving at thevalue inuse of
the CGU. The discounted cash ow method uses post tax discount rate ranging between10%-20% for currentand previous yearsfor the
aforemenoned enty. Both pre taxdiscountrateand posttaxdiscount rategives the same recoverable amount.
Annual Report 2022-23 225
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
Related pares (Refer Note 3.9) 0.63 0.03
Others 2.21 -
Refer Note 1.12 for ageing of trade receivables
Note:
Theseare carriedat amorsed cost.
As at
As at
` Crores ` Crores
Loanto customerunder nancing acvies
Considered good 19,219.26 15,121.51
Considereddoubul 741.44 212.52
Less: Allowance for loans (as per expected credit loss model) 314.32 443.30
Notes:
1. Loan tocustomer under nancingacvies carried atfair valuethroughother
comprehensive income
9,543.45 6,389.02
2. These arecarried atamorsed costexceptNote1 above.
3. Refer Note 3.6for disclosuresrelangto expectedcreditloss.
4. Movementin allowancefor loansis as follows:
Opening
Closing
March 2023 443.30 (128.98) 314.32
March 2022 522.63 (79.33) 443.30
226 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
a) Other receivables *
Considered good - -
Considereddoubul 3.99 3.99
Less:Allowance fordoubul receivables 3.99 3.99
b) Security Deposits
Considered good 50.53 33.98
Considereddoubul 0.75 0.57
Less:Allowance fordoubul receivables 0.75 0.57
c) Derivavesdesignated ashedging instrumentscarried at fairvalue 43.14 26.69
d) Others
i) Employee advances 0.94 2.13
ii) Otheradvances (includes refundreceivableand itemsrelangto nancing acvies) 401.60 295.18
iii) Bank depositsheld as security (relangto nancingacvies) - 0.87
[collateral towardssecurisaon/ assignment ofreceivables]
Ofthe employee advancesmenonedabove,
Duefrom Ocers# - 0.00
* Includes receivable on sale of windmill undertaking of the Parent Company.
#Amount is below roundingo norms adoptedby theGroup.
Notes:
1. These (except derivaves) are carried at amorsed cost. Derivaves are carried at fair value through prot or loss / other comprehensive
income.
2. Movementin allowancefordoubul other receivablesis asfollows:
Opening balance 3.99 4.34
Add:Addions - -
Less:Ulisaons / Reversals - 0.35
Closing balance 3.99 3.99
3. Movementin allowancefordoubul security deposits isas follows:
Opening balance 0.57 -
Add:Addions 0.35 0.57
Less:Ulisaons / Reversals / Reclassicaons 0.17 -
Closing balance 0.75 0.57
Annual Report 2022-23 227
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
i) Deferred taxassets 54.07 27.13
ii) Deferred tax(liabilies) (4.99) -
As at
As at
` Crores ` Crores
Advance income tax (net of provision) 222.10 213.37
As at
As at
` Crores ` Crores
Advance income tax (net of provision) 1.84 -
228 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
a) Capital Advances
Considered good 43.98 48.02
Considereddoubul 1.66 0.82
Less:Allowance fordoubul advances 1.66 0.82
b) Balances with GovernmentAuthories - Goods andServices,customs, port trust,
central excise etc. (including paid under protest)
Considered good 5.98 8.34
Considereddoubul 2.96 2.96
Less:Allowance fordoubul balances 2.96 2.96
c) Others
i) Sales tax paid (including paid under protest) 213.53 207.41
ii) Other advances (includes prepaid expenses, etc.) 67.03 75.52
Notes:
1. Movementin Allowancefordoubul advancestowardscapitaladvances is asfollows:
Opening balance 0.82 1.91
Add:Addions 0.84 -
Less:Ulisaons / Reversals - 1.09
Closing balance 1.66 0.82
2. MovementinAllowancefordoubulbalancestowardsbalanceswithGovernmentAuthories-GoodsandServicesTax,customs,porttrust,
central excise, etc. is as follows:
Opening balance 2.96 0.06
Add:Addions / Reclassicaons - 2.90
Less:Ulisaons - -
Closing balance 2.96 2.96
Annual Report 2022-23 229
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
a) Raw materials and components 1,482.83 1,220.50
b) Work-in-progress 332.98 309.30
c) Finished goods 1,237.92 679.06
d) Stock-in-trade
i) Commercial vehicles 8.87 6.03
ii) Spare parts and auto components (including works made) 281.64 227.18
e) Stores, spares and consumable tools 96.19 98.48
Notes:
1. Goods-in-transit included above are as follows:
a) Raw materials and components 43.72 80.48
b) Stock-in-trade
(i) Commercial vehicles 8.39 5.43
(ii) Spares parts and auto components (including works made) 2.81 #
2. Cost of inventories (including cost of stock-in-trade purchased and write down of inventories)
recognised as an expense during the year are `28,818.90 crores (2021-22: `17,613.26 crores).
3. For details of assets given as security against borrowings - Refer Note 3.13.
#Amount below roundingo norms of theGroup
As at
As at
` Crores ` Crores
i) Investmentsin mutualfunds (carried atfair valuethrough protor loss)
(March2023: 33,602,943.56 unitsMarch 31, 2022:31,600,536.79 units)
(relangtonancing acvity March31, 2023: 14,527,347 units andMarch 31, 2022:Nil) 3,171.40 1,298.05
ii) Investments in pass throughsecuries (relangtonancing acvies)
(Carriedat amorsed cost) 100.57 133.69
iii) Investmentsin non-converble redeemabledebentures(relangtonancing acvies)
(Carriedat amorsed cost) 98.78 71.76
iv) Investmentin security receipts(relang tonancing acvies)
(measuredat fairvaluethrough protand loss) 79.27 135.07
i) Investmentsinnon-converbleredeemabledebentures(relangtonancing acvies)
(Carriedat amorsed cost) 61.32 15.06
230 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
Considered good
Relatedpares (Refer Note3.9) 44.52 68.00
Others 4,142.84 3,196.09
Considereddoubul
Others 146.41 140.36
Less: Loss allowance 146.41 140.36
` Crores
Outstanding for following periods from due date of payment
Not due
Less than
More than
Total
(i) UndisputedTradereceivables
- considered good 3,568.46 426.45 10.60 18.49 5.65 32.64 4,062.29
(ii) DisputedTrade Receivables
- considered good - 13.36 6.09 20.04 19.27 215.56 274.32
Gross Receivables
Less: Provision 146.41
Total
` Crores
Outstanding for following periods from due date of payment
Not due
Less than
More than
Total
(i) UndisputedTradereceivables
- considered good 2,724.74 321.47 34.19 13.83 5.74 35.28 3,135.25
(ii) DisputedTrade Receivables
- considered good - 23.65 9.99 19.27 22.48 193.84 269.23
Gross Receivables
Less: Provision 140.36
Total
Notes:
1. Movement in loss allowance is as follows:
Opening balance 140.36 152.84
Add: Addions /Transfer 13.98 16.73
Less: Ulizaons/ Reversals 7.93 29.21
Closing balance 146.41 140.36
2. These arecarried atamorsed cost.
3. For details of assets given as security against borrowings - Refer Note 3.13.
Annual Report 2022-23 231
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
i) Balances with banks:
a) In current accounts 1,334.40 827.47
b) In cash credit accounts 446.22 472.73
c) In deposit accounts * 57.76 521.37
ii) Cheques on hand 47.25 161.92
iii) Cash and stamps on hand 22.95 47.47
i) Unclaimed dividend accounts (earmarked) 10.30 10.51
ii) Escrow bank account (earmarked) 36.88 42.20
iii) Deposits withoriginal maturity of morethan 3 monthsbut less than 12 months 230.96 54.49
*This representsdeposits with original maturityof less than orequal to 3 months.
As at
As at
` Crores ` Crores
Loanto customerunder nancing acvies
Considered good 8,537.05 6,311.54
Considereddoubul 559.16 897.84
Less: Allowance for loans (as per expected credit loss model) 414.78 391.35
Notes:
1. Loan tocustomer under nancingacvies carried atfair valuethroughother
comprehensive income. 5,371.42 3,838.89
2. These arecarried atamorsed costexceptNote1 above.
3. Refer Note 3.6for disclosuresrelangto expectedcreditloss.
4. Movementin allowancefor loansis as follows:
Opening
Closing
March 2023 391.35 23.43 414.78
March 2022 325.73 65.62 391.35
232 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
a) Interest accrued :
-Relang tonancing acvies - 0.23
- Others 9.14 13.37
b) Employee advances 24.75 21.78
c) Derivavesdesignated ashedging instrumentscarried at fairvalue 55.79 19.32
d) Relatedpares (Refer Note 3.9)
- Other advances 0.31 1.29
e) Intercorporate deposits - 53.00
f) Revenue grants receivable
- Considered good 25.65 38.03
- Considered doubul 8.89 8.89
Less: Allowance fordoubul receivables 8.89 8.89
g) Bank deposits with original maturity of greater than 12 months 200.10 500.00
h) ReceivablefromGovernment authories
- Considered good 3.75 11.25
- Considered doubul 3.90 3.90
Less: Allowance fordoubul receivables 3.90 3.90
i) Security Deposits
- Considered good 11.20 25.64
- Considered doubul 0.07 -
Less: Allowance fordoubul receivables 0.07 -
j) Subsidy receivable from Government 155.50 -
k) Others (includes expensesrecoverable, items relangtonancing acvity, etc.)
Considered good* 295.95 238.54
Considered doubul 36.86 20.82
Less: Allowance fordoubul receivables 36.86 20.82
Ofthe employee advancesmenonedabove,
Duefrom Ocers# 0.00 0.00
#Amount is below roundingo norms adoptedby theGroup.
Annual Report 2022-23 233
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Notes:
1. These(exceptderivaves)arecarriedatamorsedcost.Derivavesarecarriedatfairvaluethroughprotorloss/othercomprehensive
income.
2. For details of assets given as security against borrowings - Refer Note 3.13.
3. Movementin Allowancefordoubul receivables(Revenuegrantreceivable)areas follows:
Opening balance 8.89 1.93
Add:Addions - 6.96
Less:Ulisaons / Reversals - -
Closing balance 8.89 8.89
4. MovementinAllowancefordoubulreceivables-Others(includesexpensesrecoverable, itemsrelangtonancingacvity, etc.)are
as follows:
Opening balance 20.82 20.83
Add:Addions 7.04 -
Add:Reclassicaon 9.00 -
Less:Ulisaons / Reversals - 0.01
Closing balance 36.86 20.82
5. Movementin Allowancefordoubul receivable(Receivablefromgovernmentauthories) is as follows:
Opening balance 3.90 -
Add:Transfer - 3.90
Less:Ulisaons / Reversals - -
Closing balance 3.90 3.90
6. Movementin Allowancefordoubul deposits is asfollows:
Opening Balance - -
Add:Addion 0.07 -
Less:Ulisaons / Reversals - -
Closing Balance 0.07 -
As at
As at
` Crores ` Crores
Unbilled revenue (Refer note 3.7) 32.84 21.84
As at
As at
` Crores ` Crores
a) Supplier advances
Considered good
RelatedPares(ReferNote3.9) - 5.16
Others 174.22 151.96
Considereddoubul 1.13 1.04
Less:Allowance fordoubul advances 1.13 1.04
b) Balances with Government Authories - Goods and Services, customs, port trust,
central excise etc. 1,017.45 824.60
c) Others * 155.75 234.20
* Includes:
- Sales tax paid under protest 0.01 0.66
- Prepaid expenses 149.15 229.49
- Gratuity (Refer Note 3.3) 0.28 -
234 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Note:
Movementin allowancefordoubul advancesis as follows:
Opening balance 1.04 0.69
Add:Addions / Reclassicaons 0.09 0.67
Less:Ulisaons / Reversals - 0.32
Closing balance 1.13 1.04
As at
As at
` Crores ` Crores
Property, plant and equipment and Capital work-in-progress (net of provision for assets held
forsale relangtoEMAAS business) (ReferNotes 1.1 and1.2) 47.15 42.53
Right-of-use asset (Refer Note 1.1a) 5.87 5.87
Non-currentand currentnancial assets(includes tradeand other receivables,etc.) 13.82 11.74
Non-current and current assets 0.73 0.66
Inventories 4.35 2.83
As at
As at
` Crores ` Crores
Non-currentand currentnancial liabilies (includestrade andother payables,etc.) 10.76 9.90
Non-currentand currentliabilies (includes contract liabilies, etc.) 0.05 1.74
Non-currentand currentprovision(includes provisionforemployee benets) 0.06 0.14
Note:
In the meeng held on November 12, 2021, the Board of Directors of the Company had approved the transfer of "Electric Vehicle
Mobility As A Service (EMAAS)" business to Ohm Global Mobility Private Limited (step down Subsidiary of the Company) with eect from
October1,2021.The Companyhassince receivedtheregulatoryapprovalsandaccordinglyclassiedtheassociatedassetsand liabiliesas
"Heldfor sale".The provision relangtoEMAAS business classied as assetsheld forsale is shown under note2.8.
The fair value of the EMAAS business was determined using the Income approach. In this approach, the discounted cash ow method is
usedtocapturethepresentvalueoftheexpectedfutureeconomicbenetstobederivedfromthebusiness.Thisisalevel3measurement
asper the fairvalue hierarchyset outin fair valuemeasurementdisclosures. Thekeyinputs are:
a)the esmatedcash ows;and
b)the discount rate to computethe presentvalueof the futureexpected cashows
Thetransferof businesswill be consummatedon receiptof certain otherapprovalsexpectedwithin the nexttwelve months.
Annual Report 2022-23 235
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
Authorised
27,85,60,00,000 (March 2022: 27,85,60,00,000) Equity shares of ` 1 each 2,785.60 2,785.60
Issued
a) 2,28,98,12,796 (March 2022: 2,28,92,12,796) Equity shares of ` 1 each 228.98 228.92
b) 64,63,14,480 (March 2022: 64,63,14,480) Equity shares of ` 1 each issued through
GlobalDepository Receipts 64.63 64.63
Subscribed and fully paid up
a) 2,28,98,12,796 (March 2022: 2,28,92,12,796) Equity shares of ` 1 each 228.98 228.92
b) 64,63,14,480 (March 2022: 64,63,14,480) Equity shares of ` 1 each issued through
GlobalDepository Receipts 64.63 64.63
Add: Forfeited shares (amount originally paid up in respect of 760 shares) # 0.00 0.00
#Amount is below roundingo norms adoptedby theGroup.
the year
S.No Name of the Promoter No. of Shares
1. HindujaAutomove Limited(including shares heldthrough GDRs through
CibankN A, New York) 1,34,86,28,818 45.93 0.01
2. HindujaBank(Switzerland)Ltd(heldonbehalfofHindujaAutomoveLimited) 14,49,04,064 4.94 -
3. Hinduja Foundries Holdings Limited 71,27,379 0.24 -
Total
the year
S.No Name of the Promoter No. of Shares
1. HindujaAutomove Limited(including shares heldthrough GDRs through
CibankN A, New York) 1,34,86,28,818 45.94 -
2. HindujaBank(Switzerland)Ltd(heldonbehalfofHindujaAutomoveLimited) 14,49,04,064 4.94 -
3. Hinduja Foundries Holdings Limited 71,27,379 0.24 -
Total
236 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Notes:
Balance as at the beginning 2,93,55,27,276 2,93,55,27,276
Add: Issued during the year (Refer Note 3.5) 6,00,000 -
Balance as at the end of the year 2,93,61,27,276 2,93,55,27,276
HindujaFoundriesLimited(amalgamangcompany)mergedwiththeParentCompanyeecveOctober1,2016pursuanttotheorder
receivedfromNaonalCompanyLawTribunal onApril24,2017.Consequently,80,658,292equity sharesof` 1 each of the Company
hasbeen alloed on June13, 2017 as fully paidup to the shareholdersofthe amalgamangcompany.
AsonMarch31,2023,thereare35,29,18,140(March2022:35,31,58,140)equitysharesrepresenngtheoutstandingGlobalDepository
Receipts(GDRs). Thebalance GDRs havebeen convertedinto equity shares.
Hinduja Automove Limited, the holding company, holds 1,16,43,32,742 (March 2022: 1,16,43,32,742) Equity shares and 54,86,669
(March 2022: 54,86,669) Global Depository Receipts (GDRs) equivalent to 32,92,00,140 (March 2022: 32,92,00,140) Equity shares of
` 1 (March 2022: `1) each aggregangto 50.87% (March2022: 50.88%) of thetotal sharecapital.
Therearenoshareholdersholdingmorethan5%oftheequity sharecapitalof theParent CompanyotherthantheHoldingCompany
as at March 31, 2023 and March 31, 2022.
a) The Equity share holders are entled to receive dividends as and when declared; a right to vote in proporon to holding etc.
and their rights, preferences and restricons are governed by / in terms of their issue under the provisions of the Companies
Act, 2013.
b) The rights,preferences and restriconsof the GDR holdersare governedby theterms of their issue, andthe provisions ofthe
Companies Act, 2013. EachGDR holder is entled to receive60 equity shares(March 2022: 60 equity shares) of ` 1 each, per
GDR,and their vong rightscan be exercised throughthe Depository.
The Parent Company alloed 600,000 (March 2022: Nil) equity shares pursuant to the exercise of opons under Employee Stock
Opon Plan Scheme. For Informaonrelang to Employees Stock Opon Plan Scheme including details of opons outstanding as at
March 31, 2023 - Refer Note 3.5.
Annual Report 2022-23 237
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
a) Share applicaonmoney pending allotment A 0.04 -
b) Capital Reserve B 263.87 263.87
c) Securies Premium C 2,544.36 2,013.52
d) Capital RedemponReserve J 3.33 3.33
e) ShareOpons OutstandingAccount D 42.50 41.48
f) General Reserve E 1,020.55 1,020.55
g) Cash Flow Hedge Reserve F 17.73 10.01
h) Statutory Reserve G 306.17 279.91
i) ForeignCurrency TranslaonReserve H (19.43) (8.76)
j) Retained Earnings I 3,718.69 3,036.95
k) OtherComprehensive Income- Fairvaluaonon loans relangto nancing acvies K 362.51 349.48
Refer “ConsolidatedStatementof Changesin Equity”for addions /deleons in each reserve.
Notes:
A. Share applicaon money pending allotment is relang to share applicaon money received by a subsidiary and which is pending
allotment as on March 31, 2023.
B. Capitalreserve representsreservecreatedpursuanttothe business combinaons.
C. Securiespremiumrepresentspremiumreceivedonequitysharesissued,whichcanbeulisedonlyinaccordancewiththeprovisions
ofthe Companies Act, 2013 (theAct) forspecied purposes.
D. Share opons outstanding account relates to stock opons granted by the Group to employees under an employee stock opons
plan. (Refer Note 3.5)
E. General reserve is createdfrom me to me by transferring prots from retainedearnings and can be ulised for purposes such as
dividend payout, bonus issue, etc.
F. Cash ow hedge reserve represents the cumulave eecve poron of gains or losses arising on changes in fair value of hedging
instrumentsenteredintoforcashowhedges.Thecumulavegainorlossarisingonchangesinfairvalueofthehedginginstruments
that are recognised and accumulated in this reserve are reclassied to prot or loss only when the hedged transacon aects the
protor loss.
G. The statutoryreservehas been createdpursuanttostatutoryregulaonsat a percentageof protfor theyear.
H. Foreign currency translaon reserve represents exchange dierences relang to the translaon of the results and net assets of the
Group's foreign operaons from their funconal currencies to the Group's presentaon currency (i.e. Indian Rupees) which are
recogniseddirectlyinothercomprehensiveincomeandaccumulatedinthisforeigncurrencytranslaonreserve.Exchangedierences
previously accumulated in the foreign currency translaon reserve are reclassied to prot or loss on the disposal of the foreign
operaon.
I. In respect of the year ended March 31, 2023, the Board of Directors has declared a dividend of `2.60 per equity share (dividend
for March 2022: ` 1.00 per equity share) subject to approval by shareholders at the ensuing Annual General Meeng aer which
dividend will be accounted and paid out of the retained earnings available for distribuon in accordance with the provisions of the
Act. Revaluaon reserve amounng to` 1,210.21 crores transferred toretained earnings on transiondate maynot be availablefor
distribuon.
J. Capital redemponreserve representthe reservearising pursuantto the business combinaonduring 2016-17.
K. OtherComprehensiveIncome-Fairvaluaononloansrelangtonancingacviesrepresentsgains/(losses)arisingonfairvaluaon
ofloan relangto nancing acvies carriedat fairvalue throughother comprehensiveincome.
238 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
Secured borrowings
i) Redeemablenon-converbledebentures 278.80 1,674.39
ii) Term loanfrom banks 17,822.25 11,826.77
iii) SIPCOTsoloan 31.18 31.18
i) Subordinated Redeemable non-converble debentures 843.43 966.55
ii) External commercial borrowings from banks 385.86 657.14
iii) Interest free sales tax loans 66.41 66.41
iv) Other subordinated loans 74.93 74.86
Notes:
1. Theseare carriedat amorsed cost.
2. Refer Note1.25 forCurrent maturiesof long-termdebt.
3. Refer Note 3.13 for security and terms of the borrowings.
4. TheParentCompanyhasbeenauthorisedtoissue36,500,000(March2022:36,500,000)Non-CumulaveRedeemableNon-Converble
Preference Shares of ` 10 each valuing ` 36.50 crores (March 2022: ` 36.50 crores) and 77,000,000 (March 2022: 77,000,000)
Non-ConverbleRedeemablePreferenceSharesof ` 100 each valuing ` 770.00 crores (March 2022: ` 770.00 crores). No preference
shares has been issued during the year.
5. Refer Note 3.6 for details on debt covenants.
6. TheGroup has ulisedthe borrowings forthe purposefor whichit is obtained asmenoned in the agreements.
7. The Group is not declared as a willful defaulter by any bank or nancial instuon or government or any government authority,
wherever applicable.
8. Ofthe above, borrowingsrelangto nancingacvies are givenbelow:
As at
As at
` Crores ` Crores
Secured borrowings
9,600(March 31, 2022:13,300) Redeemablenon-converbledebentures 79.77 878.51
Term loans frombanks 16,037.22 10,526.77
9,750 (March 31, 2022: 11,550) Subordinated Redeemable non-converble
debentures 843.43 966.55
Other subordinated loans 74.93 74.86
As at
As at
` Crores ` Crores
a) Capital creditors 0.99 3.71
b) Derivavesdesignatedin hedging relaonshipscarried atfair value - 5.05
c) Others (Includes security deposit payable, etc.)* 104.19 134.44
d) Earnout liability relangtoa subsidiary** 58.83 -
Note:
These(exceptderivavesandearnoutliability)arecarriedatamorsedcost.DerivavesandEarnoutliabilityarecarriedatfairvaluethrough
protor loss /other comprehensiveincome.
*Includes RSP Parcipaonfeepayablerelangtonancing acvies amounng to` 82.17 crores (March 31, 2022: ` 113.76 crores)
**Representsfairvalueofconngentconsideraonpayableinrelaontoasubsidiary,payableoveraperiodof3years. Also refer note 3.18.
Annual Report 2022-23 239
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
Income received in advance (Refer Note 3.7) 250.04 193.83
As at
As at
` Crores ` Crores
a) Provision foremployeebenets
i) Compensated absences 110.68 104.70
ii) Othersincluding postrerementbenets[ReferNote3.3] 72.98 16.41
b) Provision forproductwarranes 425.56 130.35
c) Provision in relaontonet assets of asubsidiary (ReferNote3.25) 18.77 27.97
d) Other provisions(includes provision forligaon) 5.29 4.56
Notes:
1. Movementin Provisionforproductwarranesis as follows:
Opening balance (Current (Refer Note 1.30) and Non-current) 415.42 351.46
Add: Provided during the year (includes unwinding of discount) 740.87 235.80
Less:Ulisaons (net) 368.64 171.84
Closing balance (Current (Refer Note 1.30) and Non-current) 787.65 415.42
This provision is recognised once the products are sold. The esmatedprovision takes into accounthistorical informaon,frequency
andaveragecostofwarrantyclaimsandtheesmateregardingpossiblefutureincidenceofclaims. Theprovisionforwarrantyclaims
represents the presentvalue of management's best esmate of the future economic benets. The outstandingprovision forproduct
warranes as at the reporng date is for the balance unexpired period of the respecve warranes on the various products which
ranges upto 72 months (March 31 2022: upto 60 months).
2. Movementin OtherProvisions (includesprovision forligaon)is as follows:
Opening balance 4.56 8.26
Add:Addions 0.73 27.36
Less:Transfer / Reversal - 31.06
Closing balance 5.29 4.56
3. Movementin Provisionsin relaontonet assets of asubsidiary is as follows:
Opening balance 27.97 -
Add:Addions - 27.97
Less:Ulisaons / Reversals 9.20 -
Closing balance 18.77 27.97
240 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
i) Deferred taxliabilies 1,045.26 1,056.36
ii) Deferred tax(assets)* (323.26) (740.53)
*Includes Unused taxcredits (MAT credit entlement)of ` 174.57crores(March 2022: ` 584.85crores).
Note:
Refer Note3.2 fordetails of deferredtaxliabilies and assets.
As at
As at
` Crores ` Crores
Others 13.68 -
As at
As at
` Crores ` Crores
Secured borrowings
Loans from banks 1,496.46 927.48
Bills discounted 13.06 -
Loans from banks 512.43 739.34
Commercial papers 196.42 -
Loanfrom relatedpares (Refer Note3.9) 85.89 -
Bills discounted 105.57 116.83
c) Current maturiesof long-term debt 9,007.75 6,858.40
Notes :
1. These arecarried atamorsed cost.
2. Out of theabove, borrowingsrelangto nancing acvies:
- Secured - Loans from Banks 848.10 640.71
-Current maturiesof long-termdebt 7,855.51 6,468.74
- Commercial papers 196.42 -
3. Currentmaturiesof long termdebts:
Secured 8,678.11 6,606.24
Unsecured 329.64 252.16
4. Commercial paper - maximum balance outstanding during the year is ` 1,000 crores (March 2022: ` 1,250 crores).
5. TheGroup has ulisedthe borrowings forthe purposefor whichit is obtained asmenoned in the agreements.
6. Refer Note3.13 forsecurity, termsof the borrowingsand net debt reconciliaon.
7. Refer Note 3.6 for details of debt covenants.
Annual Report 2022-23 241
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
Tradepayables- including acceptances
a) Totaloutstandingdues of microenterprises and smallenterprises (Refer Note3.17) 77.09 62.63
b) Totaloutstandingdues of creditorsother thanmicro enterprisesand small enterprises 7,504.78 7,187.28
Trade Payables ageing schedule
` Crores
Outstanding for following periods from due date of payment
accrued
Not due
year
years
Total
(i) Undisputed dues - Micro and Small Enterprises 0.97 75.49 0.63 - - - 77.09
(ii) Undisputed dues - Others 940.07 5,737.79 822.31 2.93 1.20 0.48 7,504.78
(iii) Disputed dues– Micro andSmall Enterprises - - - - - - -
(iv) Disputed dues -Others - - - - - - -
Total
` Crores
Outstanding for following periods from due date of payment
accrued
Not due
year
years
Total
(i) Undisputed dues - Micro and Small Enterprises 3.72 55.66 3.21 - 0.04 - 62.63
(ii) Undisputed dues - Others 1,018.24 5,872.66 270.12 9.42 11.63 5.13 7,187.20
(iii) Disputed dues– Micro andSmall Enterprises - - - - - - -
(iv) Disputed dues -Others - - - - 0.05 0.03 0.08
Total
Notes:
1. These arecarried atamorsed cost.
2. Includes acceptancesamounng to` 269.73 crores (March 2022: ` 673.21 crores)
242 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
a) Interest accrued but not due on borrowings 237.55 219.33
b) Unclaimed dividends 10.30 10.51
c) Employee benets 462.72 229.41
d) Capital creditors
i) Total outstandingdues ofmicro enterprisesand small enterprises[Refer Note 3.17] 6.17 8.06
ii) Total outstandingdues of creditors other than microenterprises
and small enterprises 80.34 147.53
e) Derivavesdesignatedin hedging relaonshipscarriedat fairvalue 1.43 6.86
f) Assignees towardscolleconsin assigned assets (relangtonancing acvies) 223.76 242.69
g) EarnoutLiability relang toa subsidiary (RefNote3.18) 31.51 -
h) Others* 547.98 323.67
* Includes:
Refundliabilies 361.66 261.42
RSPParcipaonfeespayablerelangto nancing acvies 27.32 -
Notes :
1. These(exceptderivaves)arecarriedatamorsedcost.Derivavesarecarriedatfairvaluethroughprotorloss/othercomprehensive
income.
2. Refer Note3.13 forsecuries and termsof the borrowings.
3. Interest accrued but not due on borrowings include ` 181.20 crores (2022: ` 172.98 crores)relangto nancing acvies.
4. Refer Note 3.6 for details of debt covenants.
As at
As at
` Crores ` Crores
a) Income received in advance 293.22 301.14
b) Advance from customers 165.13 197.61
Note:
Refer Note3.7 fordisclosures relangto revenuefromcontractswith customers
Annual Report 2022-23 243
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
a) Provision foremployeebenets
i) Compensated absences 25.88 26.15
ii) Othersincluding Postrerement benets [Refer Note3.3] 89.47 87.14
b) Others
i) Provisionforproductwarranes 362.09 285.07
ii) Otherprovisions (including ligaonmaers) 109.08 134.32
Notes:
1. Movementin ProvisionforproductwarranesReferNote 1.23
2. Movementin OtherProvisions (including ligaonmaers) is as follows:
Opening Balance 134.32 133.42
Add:Addions / Transfer 5.25 3.64
Less:Ulisaons / Reversals 30.49 2.74
Closing Balance 109.08 134.32
As at
As at
` Crores ` Crores
a) Statutoryliabilies 586.94 317.45
b) Accrued gratuity (Refer Note 3.3) 8.29 6.12
c) Others 22.95 0.18
As at
As at
` Crores ` Crores
Provisionfortaxaon(netof advancetax) 128.30 123.82
244 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores ` Crores
a) Sale of products
- Commercial vehicles
Manufactured 32,508.71 18,384.30
Traded 232.44 360.35
- Engines and gensets 991.41 985.76
-Ferrouscasngs and paerns 609.33 469.02
- Spare parts and others 2,587.26 2,069.77
(A)
b) Sale of services (B) 1,530.37 952.83
c) Interest/ other nanceincome relangto nancing acvies (C) 3,647.88 3,216.12
d) Other operangrevenues
- Grant Income 0.75 0.08
-Export incenves 50.39 40.87
- Scrap sales 118.19 76.84
- Others 14.97 9.10
(D)
(A+B+C+D)
Less : Rebates and discounts 619.10 327.89
` Crores ` Crores
a) Interestincomefrom nancial assetsmeasured atamorsed cost
i) Others 31.03 27.73
b) Prot on saleof investments(net)- Currentinvestments 30.05 13.31
c) Other non-operangincome
i) Proton saleof Property,Plant and Equipment(net) 13.54 0.93
ii) Netgain/ (loss) arising on nancial assetmandatorily measuredat FVTPL 6.72 1.14
iii) Others 29.43 43.70
Annual Report 2022-23 245
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores ` Crores
a) Salaries and wages 2,869.23 2,283.15
b) Contribuon toprovidentand other funds 179.98 157.77
c) Share based payment costs * 3.54 0.64
d) Sta welfare expenses 239.65 194.85
Less: Expenses capitalised 58.02 19.65
. * For shareopons givenby the Groupto employeesunder employeestockopon plan - Refer Note3.5.
` Crores ` Crores
a) Interest expense 364.93 328.55
(including impact of unwinding of discount rate)
b) Interest and other borrowingcostsrelang tonancing acvies 1,716.76 1,534.11
c) Interest on Lease Liability 14.50 8.72
Less: Expenses capitalised 2.69 2.33
Note:
The capitalisaonrateused to determine the amount of borrowingcosts to be capitalisedis the weighted average interestrateapplicable
to the Group’s general borrowings during the year - 7.67% p.a. (March 31, 2022 - 8.36% p.a.).
246 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores ` Crores
i) Buildings 84.30 81.88
ii) Plant and equipment 464.60 467.93
iii) Furnitureand ngs 8.31 9.62
iv) Vehicles including electric vehicles 15.76 23.26
v) Commercial vehicles given on lease 0.11 -
vi) Oce equipment 29.15 28.57
vii) Assets given on lease
- Buildings 0.29 0.29
- Plant and equipment # #
-Aircra 9.74 9.74
viii) Electricaland other installaonson leasehold premises 0.04 0.04
Other Intangible assets
i) Computersoware
-Developed 5.44 16.52
- Acquired 17.08 22.26
ii) Technicalknowhow
-Developed 179.23 147.79
- Acquired 21.90 8.10
iii) Customerrelaonships 2.49 -
iv) Trademark 0.76 -
61.02 49.96
#Amount is below roundingo norms adoptedby theGroup.
Also Refer Notes 1.1, 1.2, and 1.1A.
Annual Report 2022-23 247
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores ` Crores
(a) Consumponof storesandtools 116.65 73.56
(b) Power and fuel 279.44 189.67
(c) Rent (Refer Note 3.10) 13.69 15.27
(d) Repairs and maintenance
- Buildings 59.27 49.36
- Plant and machinery 187.18 162.20
- Others 16.72 11.64
(e) Insurance 47.86 45.85
(f) Rates and taxes, excluding taxes on income 18.61 19.54
(g) Research and development(includes materialsconsumed and tesngcharges) 140.56 129.83
(h) Serviceand product warranes 852.02 455.85
(i) Packing and forwarding charges 819.03 540.90
(j) Selling and administraonexpenses (net)(includes hirecharges, travel expenditure,
adversementexpenditure,consultancycharges,etc) 1,141.19 605.24
(k) Annual maintenance contracts 249.60 218.75
(l) Serviceproviderfees(includingsourcingandcommissionexpensesrelangtonancing
acvies) 64.34 59.62
(m) Impairmentloss allowance/ writeo on tradereceivable(net) 4.75 (10.74)
(n) Impairmentloss allowance/ writeo on other receivable(net) 9.24 6.65
(o) Impairmentloss allowance/ writeo relangto nancing acvies 646.78 747.42
Less: Expenses capitalised 140.51 78.72
Note:
Sellingand administraonexpensesinclude items relangto Parent Company:
-Directors'sing fees 1.06 1.23
-Commission to Non Whole-meDirectors 4.92 3.00
` Crores ` Crores
a) Impairment in valueof goodwill &Net assets of Subsidiaries
- Albonair GmbH (Refer Note 3.25) 9.20 (236.91)
-Ashley Aviaon (7.81) -
b) Provision forobligaonsrelangto asubsidiary
- Optare plc (29.09) -
c) Reversalof provisionforObligaonin relaonto OptarePlc - 81.00
d) Loss on fairvaluaonof Investmentin HindujaEnergy (India) Limited
(Refer Note 1.3) 65.67 (107.13)
e) VoluntaryRerementScheme (4.98) (28.75)
f) Obligaonrelangto disconnuedproducts of LCVdivision (net ofreversal) 14.90 (3.67)
g) Loss(net) inrelaon toEV and relatedexpenses - (3.02)
h) Provision relangtoEMAAS business classied as assetheld forsale
(Refer Notes 1.17A and 1.17B) - (26.84)
i) Reversalof provisionrelangto saleof long term investments - 1.17
248 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
3.1.1 The Consolidated Financial Statements relate to Ashok Leyland Limited (the "Parent Company") and its subsidiaries (the Parent Company
andits subsidiaries togetherconstute"the Group"),its joint venturesandassociates.
3.1.2
a. The Consolidated Financial Statements have been prepared in accordance with Indian Accounng Standard 110 (Ind AS 110)
“Consolidated Financial Statements”, Indian Accounng Standard 28 (Ind AS 28) “Investments in Associates and Joint Ventures"
prescribedunder Secon 133 ofthe Companies Act, 2013 (the "Act").
b. The Consolidated Financial Statements of the Group have been combined on a line-by-line basis by adding together like items of
assets, liabilies, income and expenses. The intra-group balances and intra-grouptransacons and unrealised protshave been fully
eliminated.
c. The dierence between the proceeds from the disposal of investments in the subsidiary and the carrying amount of its assets and
liabilies as on the date of disposal is recognised as prot or loss on disposal of investments in the subsidiary in the Consolidated
Statementof Protand Loss.
d. Non-controlling interests in the net assets of consolidated subsidiaries consists of the amount of equity aributable to the non-
controlling shareholders at the dates on which investments are made by the Parent Company in the subsidiary companies and further
movements in their share in the equity, subsequent to the dates of investments as stated above.
e. The followingsubsidiaries areconsideredin the ConsolidatedFinancial Statements:
Sl.
No.
Name of the Subsidiary
Country of
1. Hinduja Leyland Finance Limited and its subsidiaries India 60.42% 68.80%
2. Global TVS BusBody Builders Limited India 66.67% 66.67%
3. Gulf Ashley Motor Limited India 93.15% 93.15%
4. Optare PLC and its subsidiaries UK 91.63% 91.63%
5. Ashok Leyland (Nigeria) Limited Nigeria 100.00% 100.00%
6. Ashok Leyland (Chile) SA* Chile 100.00% 100.00%
7. HLF Services Limited India 81.73% 85.58%
8. Albonair (India) Private Limited India 100.00% 100.00%
9. Albonair GmbH and its subsidiary* Germany 100.00% 100.00%
10. Ashok Leyland (UAE) LLC and its subsidiaries UAE 100.00% 100.00%
11. AshleyAviaonLimited India 100.00% 100.00%
12. Hinduja Tech Limited,its subsidiaries and jointventure India 73.83% 98.91%
13. Vishwa Buses and Coaches Limited India 100.00% 100.00%
14. GroDigitalPlaormsLimited (fromApril 14, 2021) India 80.21% 84.40%
Ownershipinterestincludes joint holding and benecialinterest.
* The nancial statements of the subsidiary companies used in the consolidaon are drawn upto the same reporng date as of the
Parent Company i.e. year ended March 31, 2023.
f. ThefollowingJointVentureshavebeenconsideredinthepreparaonofConsolidatedFinancialStatementsoftheGroupinaccordance
with Ind AS 28 “Investments in Associates and Joint Ventures”:
Sl.
No.
Country of
1. Ashley Alteams India Limited India 50.00% 50.00%
2. ZebeyondLimited, UnitedKingdom (Jointventureof Hinduja Tech
Limited and its subsidiaries)
UK
50.00% -
3. Ashok Leyland JohnDeere ConstruconEquipment Company
PrivateLimited # (Under liquidaon) India 50.00% 50.00%
# The ParentCompany along with its subsidiary, Gulf Ashley Motor Limited holds 50% interest.The nancial statements of the joint
venture has not been preparedusing going concern assumpon as it is under liquidaon. The operaonsof the joint ventureis not
signicantto theoperaonsof the Group.
g. The following associates have been considered in the preparaon of Consolidated Financial Statements of the Group in accordance
withIndian Accounng Standard(Ind AS)28 “Investmentsin Associatesand JointVentures”:
Sl.
No.
Name of the Associate Country of
interest
interest
1. Ashok Leyland DefenceSystemsLimited India 48.49% 48.49%
2. Mangalam Retail Services Limited India 37.48% 37.48%
3. Lanka Ashok Leyland PLC Sri Lanka 27.85% 27.85%
Rajalakshmi Wind Energy Limited (formerly Ashok Leyland Wind Energy Limited) and Prathama Solarconnect Energy Private Limited,
where the Parent Company holds 26% is not treated as an associate under Ind AS 28, as the Group does not exercise signicant
inuenceover theenes.
Annual Report 2022-23 249
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
S No Net Assets
Share in Other
comprehensive income
Share in Total comprehensive
income
Consolidated
Net Assets
Amount
` Crores
Consolidated
Amount
` Crores
Consolidated
Other
comprehensive
income
Amount
` Crores
Consolidated
Total
comprehensive
income
Amount
` Crores
Parent Company
1. Ashok Leyland Limited 98.50 8,425.80 111.23 1,380.11 (5.74) (2.64) 107.04 1,377.47
Indian Subsidiaries
2. Hinduja Leyland Finance Limited and its subsidiaries 65.43 5,596.62 39.78 493.61 202.50 93.11 45.60 586.72
3. Global TVSBus Body BuildersLimited 0.43 36.79 - 0.03 (0.20) (0.09) - (0.06)
4. Gulf Ashley Motor Limited 0.07 5.95 (0.41) (5.08) (0.11) (0.05) (0.40) (5.13)
5. HLF Services Limited 0.17 14.52 0.19 2.34 2.52 1.16 0.27 3.50
6. Albonair (India) Private Limited 1.70 145.32 5.81 72.09 0.24 0.11 5.61 72.20
7. Ashley AviaonLimited 0.07 6.30 (0.38) (4.70) (0.15) (0.07) (0.37) (4.77)
8. Hinduja Tech Limited,its subsidiaries and jointventure 2.40 205.69 1.65 20.51 7.59 3.49 1.87 24.00
9. Vishwa Buses and Coaches Limited 0.32 27.72 (0.38) (4.67) (0.02) (0.01) (0.36) (4.68)
10. GroDigital PlaormsLimited(from April14, 2021) 0.12 10.45 (0.76) (9.38) (0.30) (0.14) (0.74) (9.52)
Foreign Subsidiaries
11. Ashok Leyland (Nigeria) Limited 0.01 0.87 0.07 0.88 - - 0.07 0.88
12. Ashok Leyland (Chile) S.A # 0.00 0.26 - (0.04) - - - (0.04)
13. OptarePLCUK and its subsidiaries (7.17) (613.19) (46.97) (582.79) (59.00) (27.13) (47.40) (609.92)
14. Ashok Leyland (UAE) LLC and its subsidiaries 0.44 37.85 2.50 31.01 5.20 2.39 2.60 33.40
15. Albonair GmbH and its subsidiary 0.22 18.77 (0.73) (9.00) (0.43) (0.20) (0.71) (9.20)
Non controlling Interest in all subsidiaries
Indian
17. Ashok LeylandDefenceSystemsLimited# 0.25 21.42 0.12 1.52 0.00 0.00 0.12 1.52
18. Mangalam Retail Services Limited # 0.00 0.04 0.00 0.00 - - 0.00 0.00
Foreign
19. Lanka Ashok Leyland PLC 0.25 21.28 0.09 0.94 (1.68) (0.77) 0.01 0.17
Indian
20. Ashley Alteams India Limited 0.15 12.53 0.70 8.74 - - 0.67 8.74
21. Ashok LeylandJohn Deere ConstruconEquipment
CompanyPrivateLimited(under liquidaon) - - - - - - - -
Sub Total
Add/ (Less): Eect of intercompany adjustments/
eliminaons (37.13) (3,176.25) (2.77) (34.46) 20.13 9.26 (1.97) (25.20)
Total
Note:
In case of subsidiaries, the net assets and the prot and loss are as per the Standalone / Consolidated Financial Statements of the respecve enes from the date of
acquisionwhereverapplicable.Incaseofassociatesandjointventures,the shareinnetassetsandshareinprotandloss oftheParentCompany areaspertheStandalone
/Consolidated Financial Statementsof the respecveenes fromthe dateof acquision whereverapplicable.
#Amount below roundingo norms adoptedby the Group
250 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores ` Crores
In respect of the current year
Domesc enes 965.61 101.79
Foreignenes 1.29 0.35
In respect of prior years
Domesc enes 0.12 0.51
A
In respect of the current year
Domesc enes (40.67) (1.44)
Foreignenes (19.42) (15.35)
B
` Crores ` Crores
Domescenes 2,845.72 166.87
Foreignenes (577.13) (366.46)
Income tax rate 34.944% 34.944%
Income tax expense 792.74 (69.74)
Eect of incomethat is taxed atlower rate 20.72 221.99
Eect of exceponal items, disallowancesand reversals (net) (17.21) (131.16)
Eect of previouslyunrecognisedand unused taxlosses and deducble temporarydierences (10.60) (44.44)
Eect of concessionsand other allowances 20.45 (29.25)
Eect of dierent taxratesof subsidiaries/ branchesoperangin overseasjurisdicons
98.85 131.95
Eect of otheradjustments 1.98 6.51
Annual Report 2022-23 251
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores ` Crores
Arising on income and expenses recognised in other comprehensive income:
Fairvalueremeasurementof hedging instrumentsenteredintoforcash owhedges 9.54 5.39
Gain/(Loss) onfair valuaonof loans(relang tonancing acvies) 30.95 (70.06)
Remeasurementof dened benetobligaon (4.85) (13.75)
A
Arisingon income and expensesreclassied fromequity toprot orloss:
Relangtocash ow hedges (5.39) 6.84
B
Itemsthat will notbe reclassied toprot orloss (4.85) (13.75)
Itemsthat will bereclassied toprot or loss 35.10 (57.83)
` Crores
Opening
balance
Recognised
loss
Recognised
in other
comprehensive
income
Other
business
Closing
balance
Property, plant, and equipment and Intangible Assets 13.96 (17.07) - - - (3.11)
Right-of-use Asset (2.01) 0.13 - - - (1.88)
Unusedtax losses (includingunabsorbed depreciaon) 7.34 37.01 - 0.25 - 44.60
Expenditure allowed upon payments 0.27 0.18 0.03 - - 0.48
Provisionforother employeebenets - 0.87 - - - 0.87
Othertemporarydierences 7.57 0.44 0.05 0.06 - 8.12
Property, plant and equipment and Intangible Assets 948.98 (38.33) - - - 910.65
Right-of-use Asset 7.37 (5.04) - - - 2.33
Lease Liability (6.86) 3.37 - - - (3.49)
Voluntary rerement compensaon scheme (28.11) 8.66 - - - (19.45)
Expenditure allowed upon payments (101.28) (9.66) (4.77) - - (115.71)
Provisionforimpairment of nancialassets and gainon
fairvaluaonof loan relangto nancingacvies (Refer
Note below) 44.40 (17.43) 30.95 - - 57.92
Prepaidexpensesrelang tonancing acvies 60.67 4.15 - - - 64.82
Unusedtax credit(MAT creditentlement) (584.85) - - - 410.28 (174.57)
Cashow hedges 5.39 - 4.15 - - 9.54
Othertemporarydierences (29.55) 15.75 - 4.10 - (9.70)
Unusedtax losses /unabsorbed depreciaon (0.33) - - (0.01) - (0.34)
252 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
Opening
balance
Recognised
loss
Recognised
in other
comprehensive
income
Other
Closing
balance
Property, plant, and equipment and Intangible Assets - 13.96 - - - 13.96
Right-of-use Asset 0.16 (2.17) - - - (2.01)
Unusedtax losses (includingunabsorbed depreciaon) 5.53 1.81 - - - 7.34
Expenditure allowed upon payments 0.23 0.04 - - - 0.27
Othertemporarydierences 2.99 4.61 (0.02) (0.01) - 7.57
Property, plant, and equipment and Intangible Assets 1,040.47 (91.49) - - - 948.98
Right-of-use Asset 10.97 (3.60) - - - 7.37
Lease Liability (10.51) 3.84 - (0.19) - (6.86)
Voluntary rerement compensaon scheme (27.86) (0.25) - - - (28.11)
Expenditure allowed upon payments (91.26) 3.83 (13.86) 0.01 - (101.28)
Provisionforimpairment of nancialassets and gainon
fairvaluaonof loan relangto nancingacvies
(Refer Note below) 89.64 24.89 (70.06) (0.07) - 44.40
Prepaidexpensesrelang tonancing acvies 65.17 (4.50) - - - 60.67
Unusedtax credit(MAT creditentlement) (574.06) (10.07) - (0.72) - (584.85)
Cashow hedges (6.84) - 12.23 - - 5.39
Othertemporarydierences (19.23) (11.26) 0.09 0.85 - (29.55)
Unusedtax losses /unabsorbed depreciaon (90.40) 90.07 - - - (0.33)
Deferredtax assets and liabilies are recognisedfor the future taxconsequences of temporary dierences betweenthe carrying values of
assets and liabilies and their respecve tax bases, unused tax losses and unused tax credits. Deferred tax assets are recognised to the
extentthatitisprobablethatfuturetaxableincomewillbeavailableagainstwhichthededucbletemporarydierences,unusedtaxlosses
and unused taxcredits could be ulised. Such deferredtax assetsand liabilies are computedseparatelyfor each taxable entyand each
taxable jurisdicon.
Note:
` Crores
Opening
balance
Recognised
loss
Recognised
in other
comprehensive
income
Other
Closing
balance
Provisionforimpairment of nancialassets (143.28) (17.43) - - - (160.71)
Gainon fair valuaonof loanrelang tonancing
acvies 187.68 - 30.95 - - 218.63
Net Total
Opening
balance
Recognised
loss
Recognised
in other
comprehensive
income
Other
Closing
balance
Provisionforimpairment of nancialassets (168.17) 24.89 - - - (143.28)
Gainon fair valuaonof loanrelang tonancing
acvies 257.81 - (70.06) (0.07) - 187.68
Net Total
Annual Report 2022-23 253
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Contd.
As at
As at
` Crores ` Crores
- Unused tax losses 2,600.40 1,813.24
- Unused capital losses 41.91 71.39
-Unabsorbed depreciaon 0.22 0.15
Notes:
1. These will expire in various years upto 2031-32 (March 2022: 2029-30), except unabsorbed depreciaon and unused tax loss in
jurisdicon wherethereis no me limit forexpiry.
2. Theabove aregross amountson which appropriatetaxrateswould apply.
Payments to dened contribuon plans i.e., Group’s contribuon to provident fund, superannuaon fund, employee state insurance and
otherfunds are determinedunder therelevantschemes and /or statuteandcharged tothe Statementof Protand Loss in the periodof
incurrence when the services are rendered by the employees.
In case of group companies operang in foreign jurisdicon, the payments in the form of dened contribuon towards pension/social
security schemes is made as per the laws and regulaons of local jurisdicon in which the companies operate.These paymentsare made
tothe appropriateauthority/enty which is managing the funds/schemes.The assets of the funds / schemes managed by the authories/
enesare heldseparatelyfromthat of these groupcompanies andthere areno further obligaononce the contribuonsaremade.
Thetotalexpenserecognisedinconsolidatedprotorlossof `94.03crores(2021-22:`69.73crores)represents contribuonpaid/payable
tothese schemes bythe Group atratesspecied in theschemes.
The Grouphasan obligaontowardsgratuity, adened benetrerementplancoveringeligible employees.Theplan providesfora lump-
sumpayment tovestedemployeesat the me of rerement, separaon,death while in employmentor on terminaonof employmentof
anamountequivalentto15dayssalarypayableforeachcompletedyearofservice.Vesngoccursuponcompleonofveyearsofservice.
The Group accounts for the liability for gratuity benets payable in the future based on an actuarial valuaon. The Group makes annual
contribuonsto afunded gratuityscheme administeredbythe LifeInsurance Corporaonof India/ SBI LifeInsurance.
EligibleemployeesoftheGroupareentledtoreceivebenetsinrespectofprovidentfund,adenedbenetplan,inwhichbothemployees
and the Group make monthly contribuons at a specied percentage of the covered employees’ salary. The contribuons are made to
the provident fund and pension fund set up as irrevocable trusts by the Group. The interest rates declared and credited by trusts to the
membershavebeen higher than/ equal to thestatutoryrateof interest declared bythe CentralGovernment.
Group’sliabilitytowardsgratuity(funded)/(unfunded),providentfund,otherrerementbenetsandcompensatedabsencesareactuarially
determinedat theend of each reporngperiod using the projectedunit creditmethod as applicable.
These plans typicallyexpose theGroup toactuarial risks such as:investmentrisk, interest raterisk, longevityrisk and salary risk.
Investment risk The presentvalueof thedened benetplan liabilityis calculatedusing adiscountratedeterminedby
reference to the market yields on government bonds denominated in Indian Rupees. If the actual return
onplan asset is belowthis rate,it will createa plan decit.
Interest rate risk Adecreasein the bondinterestrate will increasetheplan liability. However, this willbe parallyoset
by an increase in the return on the plan’s debt investments.
Longevity risk The present value of the dened benet plan liability is calculated by reference to the best esmate
of the mortality of plan parcipants both during and aer their employment. An increase in the life
expectancyofthe plan parcipants will increasethe plan's liability.
Salary risk The present value of the dened benet plan liability is calculated by reference to the future salaries
of plan parcipants. As such, an increase in the salary of the plan parcipants will increase the plan’s
liability.
254 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Grouphasanobligaontofundanyshorallontheyieldofthetrust'sinvestmentsovertheadministeredinterestratesonanannualbasis.
The administered rates are determinedannually predominantlyconsidering the social ratherthan the economic factors and in most cases,
the actual returnearned by the Group has been higher in the pastyear The actuary has provided a valuaonforprovident fund liabilies
onthe basis of guidance issued bythe Actuarial Society ofIndia and based on the assumponsprovided below:
Provident Fund
As at
As at
Discountrate 7.18% 7.18%
Remainingtermto maturity ofporolio (years) 10.70 11.20
Expected guaranteed interest rate
First year 8.15% 8.10%
Thereaer 8.15% 8.10%
Arionrate 3.00% 3.00%
Provident Fund
As at
As at
` Crores ` Crores
Presentvalueof benet obligaon 1,463.01 1,367.99
Fair value of plan asset 1,382.41 1,293.88
Net(liability) arising fromdened benetobligaon (funded)
The Netliabilityis reectedin “Provisionforemployee benets”under provisions.[ReferNote1.30].
Theamountrecognisedintotalcomprehensiveincomeandthemovementinfairvalueassetandpresentvalueobligaonpertainingtoyear
ended March 31, 2023 is as follows :
Amounts recognised in total comprehensive income in respect of these provident fund are as follows:
` Crores ` Crores
Provident Fund
Current service cost 51.08 47.47
Net interest expense 5.31 4.71
Actuarial(gain)arising fromchanges in nancialassumpons - (0.69)
Actuarial(gain)/ loss arisingfrom experienceadjustments 10.73 (1.98)
Actuarialloss / (gain) onplan assets (0.61) 2.67
Components of provident fund recognised in other comprehensive income
Total
Thecurrentservicecostandthenetinterestexpensefortheyearareincludedin “contribuontoprovidentandotherfunds”and“Salaries
andwages” under employeebenetsexpense in protor loss (Refer Note2.3)
Annual Report 2022-23 255
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores ` Crores
Openingdened benet obligaon 1,367.99 1,310.79
Adjustmentrelangto openingpresent valueobligaon (0.07) 0.21
EmployerContribuon 46.31 42.10
EmployeeContribuon 131.40 104.83
Value of Interest Rate Guarantee 4.77 5.37
Interest cost 97.57 88.24
Actuarial(gain)/ loss arisingfrom changesin nancial assumpons - (0.69)
Actuarial(gain)/ loss arisingfrom experienceadjustments 10.73 (1.98)
Benetspaid (195.69) (180.88)
Movements in the fair value of the plan assets were as follows:
` Crores ` Crores
Opening fair value of plan assets 1,293.88 1,241.60
Interest on plan assets 92.26 83.53
Actuarialgain / (loss)on plan assets 0.61 (2.67)
Contribuons 191.35 152.30
Benetspaid (195.69) (180.88)
Closing fair value of plan assets
The Groupfunds the contribuonto administeredtrusts,which manages theplan assets in accordancewith providentfund norms.
The breakup of the plan assets into various categories is as follows:
As at
As at
CentralandStateGovernment Securiesincluding Public Sector Undertakingsecuries 75% 67%
Corporate Bonds 19% 25%
Mutual Funds 1% 3%
SpecialDeposit Scheme 5% 5%
As at
As at
` Crores ` Crores
Ifthe discount rate is 50 basis pointshigher / lower, thedened benet obligaonwould:
decrease by 1.22 0.93
increase by 1.26 0.97
The Group is sensive to Interest rate guarantee wherein any increase or decrease in the interest rate by 25 basis points results in an
increasein presentvalueobligaon by0.2% (March2022: 0.5%) or decreasein presentvalue obligaonby3.0% (March 2022:3.0%.).
The sensivity analysis presentedabovemay not be representave of the actual change in the denedbenet obligaon,since the above
analysis are based on change in an assumpon while holding other assumpons constant. In pracce, it is unlikely that the change in
assumponswould occur in isolaonof one another assome of the assumpons maybe correlated.
256 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
Gratuity
Discountrate 7.00%to 7.40% 5.20% to 7.36%
Expected rate of salary increase 5.00% to 11.80% 4.00% to12.00%
Average Longevityat rerementage - pastservice 1.94to17.50 2.73 to 16.80
Average Longevityat rerementage - futureservice 3.50 to 19.80 4.90 to17.76
Arionrate 1.00% to 38.00% 1.00% to 25.00%
Compensated Absences
Discountrate 7.00%to 7.40% 5.70% to 7.36%
Expected rate of salary increase 5.00% to 11.80% 4.00% to12.00%
Arionrate 1.00% to 38.00% 1.00% to 20.00%
Discountrate 7.18% 7.18%
Theesmatesoffuturesalaryincreases,consideredinactuarialvaluaon,takeaccountofinaon,seniority,promoonandotherrelevant
factors, such as supply and demand in the employment market.
` Crores ` Crores
Gratuity
Current service cost 25.76 24.22
Netinterestexpense/ (income) (0.42) (1.72)
Remeasurementon the netdened benet liability comprising:
Actuarial(gain)/ loss arisingfrom changesin nancial assumpons (1.36) (10.88)
Actuarial(gain)/ loss arisingfrom experienceadjustments 7.49 52.80
Actuarial(gain)/ loss onplan assets (2.14) (2.35)
Current service cost 20.51 20.21
Net interest expense 9.46 8.73
Actuarial(gain)/ loss arisingfrom changesin nancial assumpons (0.51) (4.10)
Actuarial(gain)/ loss arisingfrom experienceadjustments (15.89) (12.14)
Thecurrentservicecostandthenetinterestexpensefortheyearareincludedin‘’Contribuontoprovidentandotherfunds’’and“Salaries
andwages” under employeebenetsexpense in Consolidatedprotor loss [Refer Note 2.3].
Annual Report 2022-23 257
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
follows:
Gratuity
As at
As at
` Crores ` Crores
Presentvalueof dened benetobligaon 455.69 430.14
Fair value of plan assets 446.08 422.36
Funded (8.59) (6.86)
Unfunded (1.02) (0.92)
Presentvalueof dened benetobligaon 142.59 136.83
Fair value of plan assets - -
Fundedgratuityisreectedin‘Accruedgratuity’underothercurrentliabilies/Gratuityassetunderothercurrentassets,unfundedgratuity
andCompensated absencesis reectedin ‘Provisionforemployee benets’. [ReferNotes1.17, 1.23, 1.30 and1.31]
` Crores ` Crores
Gratuity
Openingdened benet obligaon 430.14 382.47
Adjustment/ Addion pursuanttobusiness combinaon - 1.21
Current service cost 25.76 24.22
Interest cost 29.48 24.49
Actuarial(gain)/ loss arisingfrom changesin nancial assumpons (1.36) (10.88)
Actuarial(gain)/ loss arisingfrom experienceadjustments 7.49 52.80
Benetspaid (35.82) (44.17)
-
Openingdened benet obligaon 136.83 133.43
Adjustment/ addion pursuanttobusiness combinaon - 0.20
Current service cost 20.51 20.21
Interest cost 9.46 8.73
Actuarial(gain)/ loss arisingfrom changesin nancial assumpons (0.51) (4.10)
Actuarial(gain)/ loss arisingfrom experienceadjustments (15.89) (12.14)
Benetspaid (7.81) (9.50)
258 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Movements in the fair value of plan assets were as follows:
` Crores ` Crores
Gratuity
Opening fair value of plan assets 422.36 396.79
Addionpursuant tobusiness combinaon - 1.84
Interest on plan assets 29.90 26.21
Remeasurements due to actual return on plan assets less interest on plan assets 2.14 2.35
Contribuons 27.50 39.34
Benetspaid (35.82) (44.17)
Closing fair value of plan assets
The actual returnon plan assetswas ` 32.04crores(2021-22: `28.56 crores).
As at
As at
` Crores ` Crores
Gratuity
Ifthe discount rate is 50 basis pointshigher / lower, thedened benet obligaonwould:
decrease by 14.20 14.30
increase by 15.01 15.15
Iftheexpectedsalaryincreases/decreasesby50basispoints,thedenedbenetobligaon
would:
increase by 15.64 15.85
decrease by 14.76 15.08
Compensated Absences
Ifthe discount rate is 50 basis pointshigher / lower, thedened benet obligaonwould:
decrease by 4.89 4.60
increase by 5.21 4.99
Iftheexpectedsalaryincreases/decreasesby50basispoints,thedenedbenetobligaon
would:
increase by 5.02 5.00
decrease by 4.73 4.66
The sensivity analysis presentedabovemay not be representave of the actual change in the denedbenet obligaon,since the above
analysis are based on change in an assumpon while holding other assumpons constant. In pracce, it is unlikely that the change in
assumponswould occur in isolaonof one another assome of the assumpons maybe correlated.
Furthermore, in presenng the above sensivity analysis, the present value of the dened benet obligaon has been calculated using
the projectedunit credit method atthe end of each reporngperiod, which is the same as thatapplied in calculangthe dened benet
obligaonliability recognisedin thebalance sheet.
Therewas no changein the methods and assumponsused in preparingthe sensivity analysis frompreviousyear.
The Group expects to makea contribuon of ` 37.46 crores(March 2022: ` 38.93 crores)to the dened benet plans (gratuity - funded)
duringthe next nancial year.
The average duraonof the benetobligaon(gratuity)is 7.2 years(March2022: 7.5 years).
Annual Report 2022-23 259
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` `
Basic earnings per share 4.23 (1.22)
Dilutedearnings per share 4.22 (1.22)
Face value per share 1.00 1.00
` Crores ` Crores
Prot/ (Loss) forthe yearaributableto ownersof the Parent Company 1,240.81 (358.61)
Nos. Nos.
Weightedaveragenumberofequitysharesusedinthecalculaonofbasicearningspershare 2,93,58,16,591 2,93,55,27,276
Diluveeect- Number ofshares relangto employeestockopons 31,59,351 23,15,920
Weighted average number ofequity shares used inthe calculaon ofdiluted earnings per share
TheParentCompanyhasEmployeesStockOponsPlan(ESOP)schemegrantedtoemployeeswhichhasbeenapprovedbytheshareholders
of the Parent Company. In accordance with the terms of the plan, eligible employees may be granted opons to purchase equity shares
of the Parent Company if they are in service on exercise of the grant. Each employee share opon converts into one equity share of the
ParentCompanyonexerciseattheexercise priceasperthe scheme.Theoponscarryneither rightstodividendnorvongrights.Opons
canbe exercised at anyme fromthe dateof vesngto the dateof theirexpiry.
The followingsharebased paymentarrangementswerein existenceduring thecurrent orprior year:
Number Grant date
`
Fair value
at grant date
`
ESOP 3 (Refer Note below) 20,00,000 July 19, 2017 July 19, 2027 83.50 57.42
ESOP4 (Refer Note below) 10,00,000 November 13, 2018 November 13, 2028 109.00 55.47
ESOP 5 (Refer Note below) 1,31,00,000 March 20, 2019 March 20, 2030 91.40 40.19
ESOP 6 (Refer Note below) 70,10,000 February 11, 2020 February 11, 2031 82.90 38.58
Note:
UnderESOP3and ESOP5sharesvestonvaryingdateswithintheexpirydatemenonedabovewithanoponlifeof5yearsaervesng.
ESOP1 & ESOP2 havegot vested/lapsed beforeApril 1, 2019. ESOP4, aporon of ESOP5 and ESOP6 has gotlapsed / forfeited during
theyear ended March31, 2022. Duringthe year ended March31, 2023,a poron of ESOP 3and a proonof ESOP 5 havegotforfeited.
Therearenooponsgrantedduringtheyear.Theweightedaveragefairvalueofthestockoponsgrantedduring thenancialyearis` Nil
(2021-22: `Nil). Opons grantedin the earlier yearswerepriced using a binomial opon pricing model. Whererelevant,the expectedlife
used in the model has been adjusted based on Management’s best esmatefor the eects of non-transferability, exercise restricons and
behavioural consideraons.Expected volalityis based onthe historicalshare price volality.
260 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Numbers
Weighted average
`
Numbers
Weighted average
`
Opening at the beginning of the year 1,27,70,000 90.41 2,27,10,000 88.99
Granted during the year - - - -
Forfeited / Lapsedduring the year 25,35,000 90.78 99,40,000 87.18
Exercised during the year 6,00,000 83.50 - -
Balance at the end of the year 96,35,000 90.74 1,27,70,000 90.41
WeightedAverage share priceon date ofexerciseof opon ` 156.50 (2022: ` Nil)
ESOP 3: 2,00,000 opons (Year ended March 31, 2022: ESOP 3: 4,00,000 opons), ESOP 5: 44,17,500 (Year ended March 31, 2022:
ESOP5: Nil opons)
Theshareoponsoutstandingattheendoftheyearhadaweightedaverageexercisepriceof `90.74(asatMarch31,2022:` 90.41)and
a weighted average remaining contractual life of 5.71 years (as at March 31, 2022: 6.58 years).
One of the Subsidiary of the Group has Employees Stock Opons Plan (ESOP) scheme grantedto employees which has been approvedby
its shareholders. In accordance with the terms of the plan, eligible employees may be granted opons to purchase equity shares of the
subsidiary.Eachemployeeshareoponconvertsintooneequityshareofthesubsidiaryonexerciseattheexercisepriceasperthescheme.
The opons carry neither rights to dividend nor vong rights. These are graded vesng opons which vests on varying dates within the
expirydatemenonedbelowwithanoponlifeof5yearsaervesng.Oponscanbeexercisedatanymewithin5yearsfromtheexpiry
date.
The followingsharebased paymentarrangementswerein existenceduring thecurrent orprior year:
Number Grant date
`
ESOP 1 70,58,500 July 19, 2018 July 18, 2021 10.00
ESOP 2 70,000 November 15, 2018 November14, 2021 10.00
ESOP 3 2,55,000 February 12, 2019 February 11, 2022 10.00
ESOP4 3,50,000 July 29, 2019 July 28, 2022 10.00
ESOP 5 1,90,000 November 6, 2019 November 5, 2022 10.00
ESOP 6 1,00,000 January 6, 2020 July 19, 2023 10.00
ESOP 7 1,95,000 April 23, 2021 July 19, 2023 12.00
ESOP 8 4,46,750 August 16, 2021 July 19, 2023 12.00
ESOP 9 62,46,000 November 30, 2022 November 30, 2026 11.97
ESOP 10 18,00,000 February 22, 2023 November 30, 2026 21.00
There are 80,46,000 stock opons issued during the nancial year (the weighted average fair value of the stock opons granted during
the year ended March 31, 2023 is `10.17). Opons were priced using a binomial opon pricing model. Where relevant, the expectedlife
used in the model has been adjusted based on Management’s best esmatefor the eects of non-transferability, exercise restricons and
behavioural consideraons.Expected volalityis based onthe historicalshare price ofsimilar listedCompanies.
Annual Report 2022-23 261
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Numbers
Weighted average
Numbers
Weighted average
Opening at the beginning of the year 59,53,500 10.00 71,53,500 10.00
Granted during the year 80,46,000 13.99 6,41,750 12.00
Exercised during the year * 14,51,000 10.05 17,01,250 10.00
Lapsed during the year 2,87,500 10.00 1,40,500 10.00
Balance at the end of the year 1,22,61,000 12.61 59,53,500 10.21
* Includes 41,000stock oponswhich are pendingfor allotmentas on March31, 2023.
Number of stockopons vestedbut not exercised: 37,43,276 (March31, 2022 : 50,67,250)
Theshareoponsoutstandingattheendoftheyearhadaweightedaverageexercisepriceof` 12.61 (as at March 31, 2022: ` 10.21) and
a weighted average remaining contractual life of 5 years (as at March 31, 2022: 5 years).
One ofthe Subsidiaryof theGroup,has grantedcertainstockoponstoits employeesunderEmployeestockopon scheme,2013 (“ESOP
Scheme”). The employee stock opons granted entle the employees to purchase equity shares at an exercise price either at ` 10/- per
opon or fair value at the date of the grant as determined by the Nominaon and Remuneraon Commiee of the said subsidiary at
the date of grant. During the current year, the Subsidiary has not granted opons to its employees under the ESOP Scheme.Opons to
employeesareusuallygrantedwithafour-yeargradedvesng.Theoponswouldneedtobeexercisedwithina5years(Till2021-3years)
periodfrom the dateof vesng.
The followingsharebased paymentarrangementswerein existenceduring thecurrent orprior year:
Number Grant date
`
Fair value at
grant date
`
ESOP 1 25,500 March26, 2014 Refer Note Below 10.00 to 37.95 27.95
ESOP 2 5,24,000 November 10, 2016 Refer Note Below 54.40 79.00
ESOP4 2,60,000 January 29, 2018 Refer Note Below 110.00 110.00
ESOP 5 50,000 May 16, 2018 Refer Note Below 110.00 110.00
ESOP 6 50,000 October 17, 2018 Refer Note Below 110.00 110.00
ESOP 7 50,000 March 20, 2019 Refer Note Below 110.00 110.00
ESOP 8 1,60,000 May 22, 2019 Refer Note Below 110.00 110.00
ESOP 10 3,25,000 June 2, 2021 Refer Note Below 92.97 100.00
Note:
TheExercisePeriodshallcommencefromthedateofVesngandtheVestedOponscanbeExercisedwithin aperiodof5yearsfromdate
ofVesngofOpon or ll it iscancelled as per theprovisions of theScheme.
The Subsidiary measures the compensaon cost relangto the stock opon using fair value method. The compensaon cost is amorsed
over the vesng period of the stock opon. The Subsidiary has accounted for the Employee stock opons granted as per Ind AS 102
‘Sharebased payment’. Accordingly, the subsidiary has recognised an expense of ` 0.80 crores towards employee stock compensaon
expense for the year ended March 31, 2023 (March 31, 2022: ` 1.59 crores).
262 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Numbers
Weighted average
`
Numbers
Weighted average
`
Opening at the beginning of the year 14,44,500 84.55 12,19,000 81.79
Granted during the year - - 3,25,000 92.97
Reiniated during the year - - 1,48,500 48.00
Forfeited during the year 7,000 54.40 1,84,000 61.95
Exercised during the year 1,27,000 88.89 64,000 55.10
Lapsed during the year - - - -
Balance at the end of the year 13,10,500 84.20 14,44,500 84.55
9,12,000 oponswere vestedand outstanding asat the end ofcurrent year(March31, 2022: 9,78,500).
The shareopons outstandingat the endof the yearhad a weightedaverage exercise price of ` 84.20 (March31, 2022:` 84.55)
The Group manages its capitalto ensure that enes in the Group will be able to connue as going concern while maximising the return
tostakeholders throughthe opmisaon ofthe debt and equity balance.
TheGroupdeterminesthe amountofcapitalrequiredonthe basisofannual masterplanningand budgengandveyear’s corporate plan
for working capital, capital outlay and long-term product and strategic involvements. The funding requirements are met through equity,
internalaccruals and acombinaon of bothlong-term and short-term borrowings.
TheGroupmonitorsthecapitalstructureonthebasisoftotaldebttoequityandmaturityproleoftheoveralldebtporoliooftheGroup.
` Crores ` Crores
Debt(long-termand short-termborrowingsand leaseliabilies neto eecve interest rate
adjustment)* 31,160.93 24,145.02
Totalequity 10,798.74 8,590.16
Debtequity rao 2.89 2.81
*includes borrowing inrelaon tonancing acvity 25,987.79 19,595.37
The capitaladequacy raorelangto subsidiariesengagedin nancing acvies is 18.56% (March2022: 18.71%).
The quarterly returns or statements of current assets led by the Group with Banks and Financial Instuons are in agreement with the
books of account.
The Grouphas complied with covenantsgiven under the facilityagreementsexecuted forits borrowings.
Annual Report 2022-23 263
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
In course of its business, the Group is exposed to certain nancial risks that could have signicant inuence on the Group’s business and
operaonal / nancial performance. These include market risk (including currency risk, interest rate risk and other price risk), credit risk
and liquidity risk.
Therespecvecompany’sBoardapprovesriskmanagementframeworkandpoliciesformanagingtheserisksandmonitorsuitablemigang
aconstakenby themanagement tominimise potenaladverseeectsand achieve greater predictabilityto earnings.
In line with the overall risk management framework and policies, the treasury funcon provides services to the business, monitors and
manages through an analysis of the exposures by degree and magnitude of risks.
The Group usesderivavenancial instruments to hedgerisk exposuresin accordance with the Group’s policies as approvedby the board
of directors.
Market risk represent changes in market prices, liquidity and other factors that could have an adverse eect on realisable fair values or
futurecashowstotheGroup.TheGroup’sacviesexposesitprimarilytothenancialrisksofchangesinforeigncurrencyexchangerates
andinterestratesasfuture specic marketchanges cannot benormally predictedwith reasonable accuracy.
The Group undertakes transacons denominated in foreign currencies and thus it is exposed to exchange rate uctuaons. The Group
acvelymanagesitscurrencyrateexposures,arisingfromtransaconsenteredanddenominatedinforeigncurrencies,throughacentralised
treasurydivision and uses derivaveinstrumentssuch as foreigncurrency forwardcontractsand currency swapstomigatethe risks from
suchexposures.The use of derivaveinstrumentsis subject tolimits and regularmonitoring by Management.
Thecarrying amountsofGroup’sforeigncurrencydenominatedmonetaryassetsandmonetaryliabiliesat theendofthe reporngperiod
are as follows:
`
Currency Assets Net overall
Net liability
currency
Net asset
currency
USD 1,000.08 641.23 358.85 332.55 361.41 (28.86) (387.71)
EUR 25.70 6.63 19.07 1.90 - 1.90 (17.17)
GBP 0.07 - 0.07 2.32 - 2.32 2.25
JPY 2.33 0.32 2.01 - - - (2.01)
SGD 172.21 172.21 - - - - -
CAD - - - 2.07 - 2.07 2.07
AED 0.53 - 0.53 - - - (0.53)
Others 8.39 - 8.39 5.97 - 5.97 (2.42)
`
Currency Assets Net overall
Net liability
currency
Net asset
currency
USD 979.63 815.20 164.43 284.47 190.62 93.85 (70.58)
EUR 63.95 42.18 21.77 3.11 0.29 2.82 (18.95)
GBP 0.65 - 0.65 2.35 1.56 0.79 0.14
JPY 2.99 1.64 1.35 - - - (1.35)
SGD 153.69 153.69 - - - - -
AED 0.32 - 0.32 - - - (0.32)
CAD - - - 1.73 0.38 1.35 1.35
Others 6.20 - 6.20 21.53 - 21.53 15.33
264 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Movement in the funconal currencies of the various operaons of the Group against major foreign currencies may impact the Group’s
revenuesfromitsoperaons.AnyweakeningofthefunconalcurrencymayimpacttheGroup’sexportproceeds,importpaymentsandcost
of borrowings.
Theforeignexchangeratesensivityiscalculatedforeachcurrencybyaggregaonofthenet foreign exchangerate exposureofacurrency
andaparallelforeignexchangeratesshiintheforeignexchangeratesofeachcurrencyby2%,whichrepresentsManagement’sassessment
of the reasonably possible change in foreign exchange rates.
Thesensivityofprotorlosstochangesintheexchangeratesarises mainlyfromforeigncurrencydenominatednancialinstrumentsand
theimpactontheothercomponentsofequityarisesfromforeigncurrencyforwardcontractsdesignatedascashowhedges.Thefollowing
tabledetailsthe Group’s sensivity movementin increase/decreaseinforeigncurrency exposures(net):
` Crores
Protor loss 7.75 1.34
Equity 7.75 1.34
Protor loss 0.34 0.37
Equity 0.34 0.37
Protor loss - -
Equity - -
GBP impact
Protor loss # 0.05 0.00
Equity # 0.05 0.00
Protor loss 0.04 0.03
Equity 0.04 0.03
Protor loss 0.04 0.03
Equity 0.04 0.03
Protor loss 0.01 0.01
Equity 0.01 0.01
Impact of other currencies
Protor loss 0.05 0.31
Equity 0.05 0.31
# Amountis below roundingo norms adoptedby the Group.
Annual Report 2022-23 265
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The followingtabledetails the foreigncurrency forwardcontractsoutstandingat the end ofthe reporng period:
Foreign
currency
value
`
Fair value
`
Maturity
Hedge
Weighted
Average Rate
SellUSD - Buy INR USD 1.01 82.85 0.52 April 2023 - June 2023 1 : 1 USD 1 :INR 82.88
BuyUSD - Sell INR USD 1.01 82.86 (0.62) April 2023 - June 2023 1 : 1 USD 1 : INR82.98
BuyJPY - Sell INR JPY 0.68 0.42 # April 2023 1 : 1 JPY 1 : INR0.62
Fair value hedges:
BuyUSD - Sell INR USD 1.12 92.12 (0.62) April 2023 - June 2023 1 : 1 USD 1 : INR82.92
SellUSD - Buy INR USD 4.43 364.41 1.21 April 2023 - June 2023 1 : 1 USD1 : INR 82.63
Buy EUR - Sell INR EUR 0.07 6.63 0.08 May 2023 1 : 1 EUR 1 : INR 89.02
BuyJPY - Sell INR JPY 0.51 0.32 # April 2023 - May 2023 1 : 1 JPY 1 :INR 0.62
Foreign
currency
value
`
Fair value
`
Maturity
Hedge
Weighted
Average Rate
SellUSD - Buy INR USD 0.43 32.21 0.47 May 2022 1 : 1 USD 1 : INR77.37
BuyUSD - Sell INR USD 0.20 15.16 (0.25) May 2022 1 : 1 USD 1 :INR 77.50
Buy EUR - Sell INR EUR 0.20 16.84 (0.06) May 2022 1 : 1 EUR 1 : INR 85.22
Fair value hedges:
BuyUSD - Sell INR USD 0.75 56.59 (1.20) April 2022 - June 2022 1 : 1 USD 1 : INR77.89
SellUSD - Buy INR USD 2.64 199.83 (0.21) April2022- December 2022 1 : 1 USD 1 : INR75.94
Buy EUR - Sell INR EUR 0.50 42.18 (4.64) April 2022 - March 2023 1 : 1 EUR 1 : INR 97.36
BuyJPY - Sell INR JPY 2.64 1.64 # April 2022 1 : 1 JPY 1: INR 0.62
Sell EUR - Buy INR EUR 0.01 1.01 0.02 December 2022 1 : 1 EUR 1 : INR 86.20
Sell GBP - Buy INR GBP 0.02 1.49 0.07 December 2022 1 : 1 GBP 1 : INR 101.30
SellCAD - Buy INR CAD 0.01 0.73 0.01 June 2022 1 : 1 CAD1 : INR 60.85
*included in the balance sheetunder ‘Current-othernancial assets’ and ‘Current-other nancial liabilies’. [Refer notes 1.15and 1.28]
#amount is below roundingo norms adoptedby the Group.
The Group is exposed to interest rate risk pertaining to funds borrowed at both xed and oang interest rates. The risk is managed
by the Group by maintaining an appropriate mix between xed and oang rate borrowings by the use of interest rate swap contracts.
Hedgingacviesareevaluatedregularlytoalignwithinterestrateviewsanddenedriskappete,ensuringthemostcost-eecvehedging
strategies.Further, inappropriatecases,the Groupalsoeectschangesin the borrowingarrangements toconvertoanginterestratesto
xedinterest rates.
The exposureof the group’s borrowingsto interest ratechangesat the end ofthe reporng period areas follows:
` Crores ` Crores
Variable rate Borrowings 26,145.58 18,370.18
Fixed rate Borrowings * 4,710.45 5,507.74
*includes variable rate borrowings amounng to ` 715.88 crores (March 31, 2022: ` 910.16 crores) subsequently converted to xed rate
borrowings through swap contracts
Of the above, variable rate borrowings amounng to ` 23,736.50 crores (March 31, 2022: ` 17,006.57 crores) and xed rate borrowings
amounngto ` 2,198.88crores(March 31, 2022:2,549.57 crores)relatestonancing acvity.
266 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The sensivity analysis below has been determined based on the exposure to interest rates at the end of the reporng period. For
oang rate liabilies, the analysis is prepared assuming that the amount of the liability as at the end of the reporng period was
outstandingfor the whole year. Interestratesensivity is performedat 25 basis points, as these ratesare used by the Management
regularly in assessing the reasonable possible changes in the interest rates.
If interest rates had been 25 basis points higher / lower, the Group’s prot / loss for the year ended March 31, 2023 would
decrease/increaseby`6.02crores(2021-22:decrease/increaseby`3.41crores).ThisismainlyaributabletotheGroup’sexposure
to interest rates on its variable rate borrowings.
Thesensivityanalysisbelow hasbeendeterminedbasedontheexposuretointerestratesfornon-derivaveinstrumentsattheend
of the reporng period. The weighted average interest rateon variable rate borrowing is around 7.88% p.a (March 31, 2022: 7.58%
p.a). For oang rate liabilies, the analysis is prepared assuming that the amount of the liability as at the end of the reporng
period was outstanding for the whole year. Interest rate sensivity is performed at 25 basis points, as these rates are used by the
Management regularly in assessing the reasonable possible changes in the interest rates.
Ifinterestrateshadbeen25basispointshigher/lowerandallothervariableswereheldconstant,theGroup’sprotfortheyearended
March 31, 2023 would decrease / increase by ` 50.93 crores (2021-22: decrease / increase by ` 48.89 crores). The corresponding
impactonprotaertaxandequityis` 38.11 crores (2021-22 `36.58crores). ThisismainlyaributabletotheGroup’sexposureto
interest rates on its variable rate borrowings.
Allthenancialassetsexcepthousingloansarexedrateinstruments.Inrelaontohousingloanstheinterestratesensivityanalysis
are provided below :
` Crores ` Crores
Increase/ decreaseof 100 basis pointsfor Housingloans 46.29 28.63
TheGrouphastakenforeigncurrencyandinterestrateswap(FCIRS)contractsforhedgingitsforeigncurrencyandinterestraterisksrelated
to certain external commercial borrowings. The mark-to-market gains / (loss) as at March 31, 2023 is ` 96.93 crores (March 31, 2022:
`39.89 crores).Ifthe foreigncurrencymovementis2% higher/ lowerand interest ratemovementis200 basispoints higher/ lowerwith
allothervariablesremainingconstant,theGroup’sprot/lossfortheyearendedMarch31,2023wouldapproximatelydecrease/increase
by `Nil (year endedMarch 31, 2022:decrease / increaseby ` Nil).
Equitypriceriskisrelatedtothechangeinmarketreferencepriceoftheinvestmentsinquotedequitysecuries.Thefairvalueof someof
theGroup’s investmentsexposes the Groupto equityprice risks. In general,these securies arenot held fortrading purposes.
Creditrisk refersto therisk thata counterpartywilldefaulton itscontractualobligaonsresulnginnancial loss tothe Group.The
Group has adopted a policy of only dealing with creditworthy counterpares and obtaining sucient collateral, where appropriate,
asa meansof migangtherisk ofnancial loss fromdefaults.TheGroup’sexposureand thecreditrangsof itscounterparesare
connuouslymonitoredand the aggregate value of transaconsconcludedis spread amongstapprovedcounterpares.
Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit
evaluaonisperformedonthenancialcondionofaccountsreceivableand,whereappropriate,creditguaranteecoveristaken.The
Group’s trade and other receivables, consists of a large number of customers, across geographies, hence the Group is not exposed to
concentraon risk exceptin case of a STU in relaon to the ParentCompany. The average credit period is in the rangeof 7 days to
90 days.
TheGroupmakesalossallowanceusingsimpliedapproachforexpectedcreditlossandonacasetocasebasis.ECLaretheweighted
average of credit losses with the expected risk of default occurring as the weights (historically not signicant). ECL is dierence
betweenall contractualcash ows that are due tothe Groupin accordance with the contractand all the cash ows that the Group
expects to receive.
Expected credit loss for other than trade receivables has been assessed and based on life-me expected credit loss, loss allowance
provisionhasbeenmade.The ageingontradereceivableisgiveninnote1.12. Thecreditriskon liquidfundsand derivavenancial
instrumentsis limitedbecause the counterparesarebanks withhigh credit-rangs.
Annual Report 2022-23 267
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
CreditRiskrefers totheriskthat acounterpartywilldefaultonitscontractualobligaonsresulnginnancial losstotheGroup.The
Group has adopted a policy of only dealing with creditworthy counterpares and obtaining sucient collateral, where appropriate,
asa meansof migangtherisk ofnancial loss fromdefaults.TheGroup’sexposureand thecreditrangsof itscounterparesare
connuously monitored and the aggregate value of transacons concluded is spread amongst approved counterpares. Receivables
consistof a large number of customers, spread across diversecategoriesof products.Ongoing credit evaluaonis performed on the
nancialcondion of accountsreceivableand, where appropriate, credit guarantee coveris taken.The Groupdoes not havea credit
riskto an individual customerin excessof 5%. TheGroup’s concentraons ofrisk are managedby client / counterpartyand industry
sector. The followingtableshows the risk concentraon by industryfor thesignicant componentsof the nancial assets:
` Crores
Financial
services
Retail and
wholesale
Total Financial
services
Retail and
wholesale
Total
Investments 1,817.83 - 1,817.83 1,176.25 - 1,176.25
Loans 1,605.24 26,810.35 28,415.59 1,004.37 20,763.15 21,767.52
The Group considers a nancial instrument defaulted and therefore Stage 3 (credit-impaired) for ECL calculaons in all cases when
theborrowerbecomes90dayspastdue onits contractualpayments. TheGroupruns modelsforits keyporolioswhich incorporate
both qualitave and quantave informaon and, in addion to informaon specic to the borrower, ulise supplemental external
informaonthat couldaectthe borrower’sbehaviour. Probabilityof Defaults(PD) arethen adjustedforInd AS 109ECL calculaons
toincorporateforward looking informaonand the IndAS 109 Stageclassicaon ofthe exposure.
The exposure at default (EAD) represents the gross carrying amount of the nancial instruments subject to the impairment
calculaon,addressingboththeclient’s abilitytoincreaseitsexposurewhileapproachingdefaultand potenalearlyrepaymentstoo.
TocalculatetheEADforaStage1loan,theGroupassessesthepossibledefaulteventswithin12monthsforthecalculaonofthe12
monthECL.ForStage2andStage3nancialassets,theexposureatdefaultisconsideredforeventsoverthelifemeoftheinstruments.
The Group determines EADs by modelling the range of possible exposure outcomes at various points in me, corresponding the
mulplescenarios.
The accounts which were restructured under the Resoluon Framework for COVID-19 related stress as per RBI circular dated
August06, 2020 (ResoluonFramework1.0) andMay 05, 2021(Resoluon Framework2.0) wereinially classied under Stage2.
The credit risk assessment is based on a standardised Loss Given Default (LGD) assessment framework that results in a certain LGD
rate.TheseLGDratestakeintoaccounttheexpectedEADincomparisontotheamountexpectedtoberecoveredorrealisedfromany
collateralheld.TheGroupsegmentsitslendingproductsintosmallerhomogeneousporolios.Theapplieddataisbasedonhistorically
collectedlossdataandinvolvesawidersetoftransaconcharacteriscs(e.g.,producttype,widerrangeofcollateraltypes)aswellas
borrowercharacteriscs. Furtherrecentdataand forward-lookingeconomicscenarios areused inorder todeterminethe IndAS 109
LGD rate for each group of nancial instruments. When assessing forward-lookinginformaon, the expectaon is based on mulple
scenarios.
Expected creditloss provisionmatrix fornancing acvies isas follows:
Staging Provisions
0-30 days past due Stage 1 12 month provision 0.14% 0.15%
30-90 days past due Stage 2 Lifeme provision 5.80% 3.86%
More than 90 days past due Stage 3 Lifemeprovision 39.52% 41.38%
Grouping
As perInd AS109, the Groupis requiredtogroupthe poroliobasedon the sharedriskcharacteriscs.The Grouphasassessed the
risk and its impact on the various porolios and has divided the porolio into Two wheeler loans, Commercial vehicle loans, Loan
againstproperty, Construcon equipment and Three wheeler loans. The below table representsgross exposures excluding the value
of the underlying collaterals.
268 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
Total
Investments
Esmatedgrosscarrying amountat default 1,817.85 - - 1,817.85
Expected probability of default - - - -
Expected credit losses (0.02) - - (0.02)
Carrying amount net of impairment provision
Loans
Esmatedgrosscarrying amountat default 24,833.03 2,924.14 1,299.74 29,056.91
Expected probability of default 0.10% to4.74% 1.67% to 9.70% 100% 0.10% to 100%
Expected credit losses (43.18) (239.52) (446.40) (729.10)
Carrying amount net of impairment provision
Total
Investments
Esmatedgrosscarrying amountat default 1,176.47 - - 1,176.47
Expected probability of default - - - -
Expected credit losses (0.22) - - (0.22)
Carrying amount net of impairment provision
Loans
Esmatedgrosscarrying amountat default 15,631.50 5,471.10 1,440.81 22,543.41
Expected probability of default 0.03% to4.64% 1.67% to 52.91% 100% 0.03% to 100%
Expected credit losses (25.91) (298.12) (510.62) (834.65)
Carrying amount net of impairment provision
` Crores
Total
Assets derecognised or repaid (3.27) (3.00) (105.55) (111.82)
Assets originated or purchased 11.05 26.09 4.55 41.69
Change in the measurement from 12 month to
lifeme expectedlossesand vice versa (26.13) 184.22 197.34 355.43
Write os - - (299.01) (299.01)
Assets derecognised or repaid (2.71) (22.71) (103.94) (129.36)
Assets originated or purchased 24.08 36.62 15.95 76.65
Change in the measurement from 12 month to
lifeme expectedlossesand vice versa (7.87) (71.93) 263.71 183.91
Write os 3.77 (0.58) (239.94) (236.75)
The Credit risk on liquid funds and derivave nancial instruments is limited because the counterpares are banks with high
credit-rangs.
Annual Report 2022-23 269
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The subsidiaries engagedinnancing acvies monitorsconcentraonof creditrisk as below:
Type of counter party
As at
As at
` Crores ` Crores
- Commercial and other vehicles Retail 17,057.28 14,725.67
- Loan against property Retail 4,407.50 3,108.99
- Housing loans Retail 5,986.89 3,704.38
- Term loans Corporate 1,605.24 1,004.37
Total
In India 29,056.91 22,543.41
Outside India - -
Thesubsidiariesengagedinnancingacvieshas consideredmacroeconomicfactors suchasGrossDomescProductandIndustrial
ProduconforcalculaonofProbabilityofDefault(PD). RBIvide CirculardatedNovember12,2021and furtherclaried videcircular
dated February 15, 2022. - “Prudenal norms on Income Recognion, Asset Classicaon and Provisioning (IRACP) pertaining to
Advances-Claricaons”hasclaried/harmonizedcertainaspectsofextantregulatoryguidelineswithaviewtoensuringuniformity
in the implementaon of lRACP norms across all lending instuons. The subsidiaries engaged in nancing acvies has complied
withthesaid normswith eectfrom01October2022.In addiontothe abovethesesubsidiariesmakeinvestmentsinpass through
securies,debentures,funds, and securityreceipts allof which areexposurestoother nancial instuonsin India. The exposureto
suchpares as at March31, 2023 andMarch 31, 2022are ` 1,817.83 crores and `1,176.25 croresrespecvely.
The carryingamountof nancialassets representsthemaximumcreditexposure.The maximumexposureisthe totalofthe carrying
amountofbalanceswithbanks,shorttermdepositswithbanks,tradereceivables,marginmoneyand othernancialassetsexcluding
equity investments.
Thereis nosignicantchangesas comparedtothepreviousyearin theobjecves,policies andprocessesfollowedby theGroupfor
managing the risk.
UnderIndAS109,allnancialassetsneedtobeassessedbasedontheircashowcharacteriscsandthebusinessmodelinwhichthey
areheldinordertodeterminetheirclassicaon.Onthebasisofsuchassessment,inthepreviousyear,theGrouphadclassiedand
measuredloanto customers atamorsed cost.Thiswason the basisthatthe assignmenttransaconsaregenerallyinsignicantand
outliersinthecontextoftransaconstomeetcapitaladequacynormsonone-obasiscannotbeconsideredtoviatethebusinessmodel.
As at April 1, 2018, the Group reassessed its business model and concluded that loan to customers excluding two wheeler, three
wheelerandtractorloans,arenotintendedtobeheldformaturity.Accordingly,loantocustomersoriginangaerApril1,2018have
beenaccountedat FairValue Through OtherComprehensive Income(‘FVOCI’).”
Osengofcashandcashequivalentstoborrowingsaspertheconsorumagreementisavailableonlytothebankintheeventofa
default.Groupdoesnothavetherighttoosetincaseofthecounterparty’sbankruptcy,therefore,thesedisclosuresarenotrequired.
LiquidityriskreferstotheriskthattheGroupcannotmeetitsnancialobligaons.Theobjecveofliquidityriskmanagementistomaintain
sucient liquidity and ensure that funds are available for use as per requirements. The Group has obtained fund and non-fund based
working capital limits from various banks. Furthermore, the Group has access to funds from debt markets through commercial paper
programs, non-converble debentures, and other debt instruments. The Group invests its surplus funds in bank xed deposit and mutual
funds, which carry minimal mark-to-market risks.
270 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The Grouphad access tothe followingundrawnborrowing faciliesat theend of the reporngperiod:
` Crores ` Crores
From Banks
- Secured 10,956.10 9,525.36
- Unsecured 699.50 786.73
Total
Furthertotheabove,theParentCompanyhasanopontoissuecommercialpaperforanamountof` 2,000 crores (March 31, 2022 ` 2,000
crores).The Group also constantly monitors funding opons available in the debt and capital markets with a view to maintaining nancial
exibility.
The table below summarises the maturity prole remaining contractual maturity period at the balance sheet date for its non-derivave
nancialliabilies based on the undiscountedcash ows:
` Crores
Total
Tradepayables 7,581.87 - - 7,581.87
Othernancial liabilies 1,362.78 164.01 - 1,526.79
Borrowings 11,805.53 18,418.52 1,310.07 31,534.12
LeaseLiabilies 61.90 156.72 84.37 302.99
Total
Tradepayables 7,249.91 - - 7,249.91
Othernancial liabilies 961.87 138.15 - 1,100.02
Borrowings 9,006.51 14,763.16 910.31 24,679.98
LeaseLiabilies 58.57 146.54 75.09 280.20
Asthereisnoexpectedcreditlossonthenancialguaranteesgiventogroupcompanies,theParentCompanyhasnotrecognisedaliability
towards nancial guaranteeas atthe end of thereporng period. Accordingly, not includedin the abovetable.
Thetablebelowsummarisesthematurityproleforitsderivavenancialliabiliesbasedontheundiscountedcontractualnetcashinows
and oulows on derivave liabilies that sele on a net basis, and the undiscountedgross inows and oulows on those derivavesthat
requiregrossselement. When theamount payableor receivableis not xed,the amountdisclosed has been determinedby reference to
theprojectedinterestratesas illustratedby theyield curves atthe end of the reporngperiod.
` Crores
Carrying amount
Currency and interest rate swaps - - -
Foreign exchange forward contracts 1.43 - 1.43
Carrying amount
Currency and interest rate swaps 0.34 5.05 5.39
Foreign exchange forward contracts 6.52 - 6.52
Annual Report 2022-23 271
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
Financial assets
a.
Investments (net of impairment) 429.68 308.88
Investments - Accounted for using equity method 55.27 46.60
Cash and cash equivalents 1,908.58 2,030.96
Other bank balances 278.14 107.20
Tradereceivables(net of allowance) 4,190.20 3,264.12
Loans (net of allowance) 13,412.94 11,480.85
Others (net of allowance) 1,179.42 1,235.29
b.
Investments 4,367.40 2,296.64
Loans (net of allowance)* 14,914.87 10,227.91
Derivavesdesignated ashedging instruments 98.93 46.01
a.
Borrowings 30,920.44 23,939.35
Tradepayables 7,581.87 7,249.91
Othernancial liabilies 1,674.00 1,319.35
LeaseLiabilies 240.49 205.67
b.
Derivavesdesignated ashedging instruments 1.43 11.91
Earnout liability 90.34 -
*These are loans relangto nancing acvies which are measuredat fair valuethrough OCI (recurring fairvalue measurements-Level 3)
and the fair value loss accounted during the year amounts to ` 122.97 crores (March 31, 2022: gain ` 278.36 crores)
Thecarryingamountsoftradereceivables,tradepayables,capitalcreditorsandcashandcashequivalentsareconsideredtobethesameas
theirfairvalues,duetotheirshort-termnature.Thefairvaluesforloans,securitydepositswerecalculatedbasedoncashowsdiscounted
usinga currentlending rate.The fairvaluesof non-currentborrowingsare basedon discountedcash owsusing acurrentborrowing rate.
Fornancialassetsandliabiliesthataremeasuredatfairvalue,thecarryingamountsareequaltothefairvaluesexceptforthefollowing:
` Crores
Carrying amount Fair value Carrying amount Fair value
Financial assets
Financial assetsheld at amorsedcost:
-Investmentsrelangto nancing acvies 429.68 429.68 308.88 308.88
-Loans relangto nancing acvies 13,412.94 13,412.94 11,480.85 12,383.25
-Other nancial assets relangto nancingacvies 613.11 613.11 436.49 436.49
Financial liabiliesheld at amorsed cost:
-Redeemable non-converbledebentures
(relangtonancing acvies) 1,084.10 1,084.10 1,328.16 1,328.16
-Subordinatedredeemable non-converbledebentures
andloan (relangto nancing acvies) 918.36 918.36 1,221.41 1,221.41
- Commercial Paper 196.41 196.41 - -
-Term loans(relang tonancing acvies) 23,736.50 23,736.50 17,006.57 17,006.57
272 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Fair value hierarchy as at
Total
Financial assets
Financial assetsheld at amorsedcost:
- Investments relangto nancing acvies - - 429.68 429.68
- Loans relangtonancing acvies - - 13,412.94 13,412.94
- Other nancial assetsrelangto nancing acvies - - 613.11 613.11
Financial liabiliesheld at amorsed cost:
- Redeemablenon-converbledebentures
(relangtonancing acvies) - 1,084.10 - 1,084.10
- Subordinatedredeemablenon-converbledebentures
andloans (relangto nancing acvies) - 918.36 - 918.36
- Commercial Paper - 196.41 - 196.41
- Term loans (relangto nancingacvies) - - 23,736.50 23,736.50
Fair value hierarchy as at
Total
Financial assets
Financial assetsheld at amorsedcost:
- Investments relangto nancing acvies - - 308.88 308.88
- Loans relangtonancing acvies - - 12,383.25 12,383.25
- Other nancial assetsrelangto nancing acvies - - 436.49 436.49
Financial liabiliesheld at amorsed cost:
- Redeemablenon-converbledebentures
(relangtonancing acvies) - 1,328.16 - 1,328.16
- Subordinatedredeemablenon-converbledebentures
andloans (relangto nancing acvies) - 1,221.41 - 1,221.41
- Term loans (relangto nancingacvies) - - 17,006.57 17,006.57
The fair values of the nancial liabilies included in the level 2 and level3 categories havebeen determined in accordance with generally
acceptedpricingmodelsbasedon adiscountedcashowanalysis,withthemostsignicantinputsbeingthe discountratethatreectsthe
creditrisk of counterpares.
Discounted cash ow method has been used to determine the fair value. The discounng factor used has been arrived at aer adjusng
therateof interestfor thenancial assets by thedierencesin the ratesfrom dateof inial recogniontothe reporng dates
The carrying valueand fairvalueof investmentsand loansat amorsed costis net ofECL provision.
The signicantinputs were:
a) the esmate of cash ows;and
b) the discount rate to computethe presentvalueof the futureexpected cashows
A decreasein the esmatedcashinows in isolaonwould resultin a signicantdecrease inthe fair value.
Annual Report 2022-23 273
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Some of the Group’s nancial assets and nancial liabilies are measured at fair value at the end of each reporng period. The following
table gives informaon about how the fair values for material nancial assets and material nancial liabilies have been determined (in
parcular, the valuaontechnique(s)and inputs used) :
Fair value as at
Fair value
hierarchy
Derivave
instruments, i.e.
forward foreign
currency contracts,
currency and
interest rate swaps
Assets –
` 98.93
crores;and
Liabilies
– ` 1.43
crores
Assets –
`46.01
crores;
and
Liabilies
– ` 11.91
crores
Level 2 Discounted future cash ows which are esmated based on forward exchange
rates (from observable forward exchange rates at the end of the reporng
period) and contractforwardrates,discounted at a rate that reectsthe credit
riskof the Group/various counterpares.
Further,incaseofswapcontracts,thefutureesmatedcashowsalsoconsider
forward interestrates(fromobservableyield curvesatthe end ofthe reporng
period) and contractforwardrates,discounted at a rate that reectsthe credit
riskof the Group/various counterpares.
Fair value as at
Fair value
hierarchy
unobservable inputs
to fair value
Investments in
mutual funds
`3,171.40 crores ` 1,298.05 crores Level 1 Net assets value in
anacve market
Not applicable Not applicable
Investments
in unquoted
preference shares
Preference shares
of:
Ashok Leyland
DefenceSystems
Limited - ` 6.93
crores
(Refer Note 1.3)
Preference shares
of:
Ashok Leyland
DefenceSystems
Limited - ` 6.89
crores
(Refer Note 1.3)
Level 3 Income approach
– in this approach,
the discounted
cashow method
used to capture the
present value of
the expected future
economicbenets to
be derived from the
ownership of these
preference shares
Thesignicant inputs
were:
a)the esmated
cashows fromthe
dividends on these
preference shares
andthe redempon
proceeds on
maturity;and
b) the discount rate
to compute the
present value of the
future expected cash
ows
A slight decrease in
theesmatedcash
inowsin isolaon
would result in a
signicantdecrease
in the fair value.
(Note 2)
Loansrelang to
nancingacvies
`14,914.87 crores ` 10,227.91 crores Level 3 Income approach
– in this approach,
the discounted
cashow method
used to capture the
present value of
the expected future
economicbenets
Thesignicant inputs
were:
a)the esmated
cashows, and
b) the discount rate
to compute the
present value of the
future expected cash
ows
A slight decrease in
the discount rate
used would result in
asignicant increase
in the fair value.
(Note 5)
274 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Fair value as at
Fair value
hierarchy
unobservable inputs
to fair value
Investments in
unquoted equity
shares and
Investment in
special limited
partnership
Equity shares of:
Hinduja (Energy)
Limited - `147.00
crores
Others - `52.44
crores
(Refer Note 1.3)
Equity shares of:
Hinduja (Energy)
Limited - ` 81.33
crores
Others - `49.89
crores
(Refer Note 1.3)
Level 3 Income approach
and Net Asset Value
(Realisable value)
approach – in these
approaches, the
cashow method
was used to capture
the present value of
the expected future
economicbenets to
be derived from the
ownership of these
equity instruments
Thesignicant inputs
were:
a)the esmated
cashows; and
b) the discount rate
to compute the
present value of the
future expected cash
ows
A slight decrease in
theesmatedcash
inowsin isolaon
would result in a
signicantdecrease
in the fair value.
(Note3 and 4)
Notes:
1) Therewereno transfers betweenLevel1, 2 and 3 during theyear.
2) Otherthingsremainingconstanta5%increase/decreaseinthe WACCor discountrateusedwoulddecrease/increasethefairvalueofthe
unquoted preference shares by ` 1.63 crores/ ` 2.36 crores (as at March 31, 2022: `1.73 crores/ ` 2.61 crores).
3) Otherthings remainingconstant,a50 basispointsincrease/ decreaseinthe WACCor discountrateused woulddecrease/increasethefair
value of the unquoted equity instruments by `14.98 crores/ `14.37 crores(as at March31, 2022: `12.96 crores/ ` 13.7 crores).
4) Other things remaining constant, a 5% increase/ decrease in the revenuewould increase/ decrease the fair value of the unquoted equity
instruments by `48.61 crores/ ` 49.59 crores(as atMarch 31,2022: ` 44.82 crores/ `44.76 crores).
5) A 100 basis points increase / decrease in the discount rate used would decrease / increase the fair value of loans relang to nancing
acviesby ` 286.09 crores/ ` 297.03 crores (as at March 31, 2022: `189.38crores/ ` 196.57 crores).
6) Gain / loss recognised in prot or loss included in other income (Refer Note 2.2) arising from fair value measurement of Level 3 nancial
assets is gain of ` 2.63 crores ( as at March 31, 2022: gain of `0.18crores).TheGrouphasalsorecordedafairvaluegainof` 65.67 crores
(March 31, 2022: loss of `107.13 crores)in equity investmentof Hinduja Energy India Limited and presented the same under exceponal
items in Note 2.7.
TheGrouptransfersnancereceivablesinsecurizaontransacons.Insuchtransacons,theGroupsurrenderscontroloverthereceivables,
though it connues to act as an agentfor the collecon and monitoring of the receivables.The Group also provides creditenhancements
to the transferee in respect of securizaon transacons on account of which the Group connues to have the obligaon to pay to the
transferee, limited to the extent of credit enhancements even if it does not collect the equivalent amounts from the original assets and
accordinglyconnuesto retainsubstanallyall risks and rewards associatedwith the receivables.
As at March 31, 2023, the carrying amount of these loans that have been transferred but have not been derecognised amounted to ` Nil
(March 31, 2022: `89.34 crores)and thecarrying amount of theassociated liabilityis ` Nil (March 31, 2022: ` 89.34crores).
Theamountandtypeofcollateralrequireddependsonanassessmentofthecreditriskofthecounterparty.Guidelinesareinplacecovering
theacceptabilityand valuaonofeach typeof collateral. The maintypes ofcollateralobtainedarevehicles,loan poroliosandmortgaged
properes based on the nature of loans. Management monitors the market value of collateral and will request addional collateral in
accordancewiththeunderlying agreement.TheGroupadvancesloantomaximum extentof70% ofthe valueofthemortgagedproperes
and100% in case ofvehicles respecvely.
Annual Report 2022-23 275
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores ` Crores
Type of goods and service
a) Sale of products
- Commercial vehicles 32,741.15 18,744.65
- Engines and gensets 991.41 985.76
- Ferrouscasngsand paerns 609.33 469.02
- Spare parts and others 2,587.26 2,069.77
b) Sale of services
- Freight and Insurance 596.25 353.90
- Annual Maintenance Contracts (AMC) 253.26 226.42
- IT andengineering services 354.40 225.63
- Others (includes warranty services) 326.46 146.88
c) Other operangrevenues
- Scrap sales 118.19 76.84
- Others 14.97 9.10
Less: Rebates and discounts 619.10 327.89
Total revenue from contracts with customers
India 34,339.99 20,155.56
Outside India 3,633.59 2,824.52
Total revenue from contracts with customers
` Crores
At a point in
Over a period of
At a point in
Over a period of
-Sale of productsand other operangrevenue 37,050.14 12.17 22,346.04 -
- Sale of Services - Freight and Insurance 23.05 573.20 - 353.90
-Sale of Services - IT and engineering - 354.40 - 225.63
- Sale of Services - AMC and Others
(includes extended warranty services) 229.68 350.04 55.09 327.31
Less: Rebates and discounts 619.10 - 327.89 -
Total revenue from contracts with customers
276 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
Tradereceivables(Refer Notes 1.4 and1.12) 4,190.20 3,264.12
Contract assets (Refer Note 1.16) 32.84 21.84
Contractliabilies (Refer Notes1.22 and 1.29) 708.39 692.58
Contract assets are unbilled revenue earned from AMC and other services which are recognised upon compleon of service. Upon billing
asper the terms ofthe contract,the amountsrecognised ascontractassets arereclassied totradereceivables.
Contractliabiliesincludesadvancesreceivedfromcustomers andincomereceivedinadvancearisingduetoallocaonoftransaconprice
towardsfreightandinsuranceservicesonshipmentsnotyetdeliveredtocustomerandunexpiredservicewarranes.Thereisnosignicant
changein contractliabilies.
` Crores ` Crores
Revenuerecognised fromcontractliabilies atthe beginning of the year 489.19 475.80
Revenuerecognised fromperformanceobligaonssased inprevious years 5.22 10.40
` Crores ` Crores
Contracted price 38,592.68 23,307.97
Rebates and discounts (619.10) (327.89)
Revenue from contracts with customers
The transaconprice allocatedto theremaining performanceobligaons(unsasedor parally unsased)as follows:
As at
As at
` Crores ` Crores
Within one year 520.66 540.25
More than one year 256.24 226.85
The remaining performance obligaons expected to be recognised in more than one year relate to the extended warranty and other
obligaonwhich isexpectedto be recognisedovera period of 24 monthsto 72 months.
Annual Report 2022-23 277
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The Group’s operang segment is idened as business segment based on nature of products, risks, returns and the internal business
reporngsystemasperIndAS108. TheGroupisengagedinthebusinessofmanufacturingofCommercialVehiclesand renderingFinancial
Services mainly relangtovehicle and housingnancing.
` Crores ` Crores
i Segment Revenue
Commercial vehicle 38,024.72 23,021.03
Financial service 3,649.54 3,216.92
Gross Revenue
Less: Inter-segmental revenue 1.66 0.80
ii Segment Results
Commercial vehicle 1,819.40 (82.46)
Financial service (aerdeducng interest expense onloan nancing) 656.52 447.63
Interest Expense (376.74) (334.94)
Other Income 110.77 86.81
Shareof protof associatesand joint ventures(net) 10.75 7.52
Exceponalitems 47.89 (324.15)
Less:Tax 906.93 85.86
iii Segment Assets
Commercial vehicle 22,398.80 19,188.53
Financial service 32,329.73 24,412.25
Total Segment Assets
iv
Commercial vehicle 17,108.90 14,637.49
Financial service 26,820.89 20,373.13
v
Commercial vehicle 1,155.73 910.28
Financial service 62.56 25.09
The Group's segment based on geography is given below:
In India 38,039.01 23,412.63
Outside India 3,633.59 2,824.52
Total
In India 7,938.12 6,883.70
Outside India 789.35 558.35
Total
278 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Holding company
HindujaAutomove Limited,United Kingdom
Machen Holdings SA
(HoldingCompany of HindujaAutomove Limited,United Kingdom)
MachenDevelopment Corporaon,Panama
(Holding Company of Machen Holdings SA)
Amas Holdings SPF*
(HoldingCompany of MachenDevelopment Corporaon,Panama)
Fellow subsidiaries
Gulf Oil Lubricants India Limited
Hinduja Energy (India) Limited
DAStuart India PrivateLimited
Prathama Solarconnect Energy Private Limited
Hinduja Renewables Private Limited
GulfRAK Lube Oil (Ras Al Khaimah)
GulfOil InternaonalLimited
Gulf Oil Middle East Limited
HR Vaigai Private Limited
OHMInternaonalMobility Limited, UnitedKingdom ................................................ From August 2, 2021, Upto August 23, 2022
OHM Global Mobility Private Limited ...........................................................................From March 8, 2021, Upto August 23, 2022
GOCLCorporaonLimited
Associates
AshokLeyland DefenceSystemsLimited
Lanka Ashok Leyland PLC
Mangalam Retail Services Limited
Ashley Alteams India Limited
AshokLeylandJohnDeereConstruconEquipmentCompanyPrivateLimited(AlongwithGulfAshleyMotorLimited)[underliquidaon]
ZebeyondLimited, UK ...................................................................................................................................fromDecember21, 2022
AshokLeyland EducaonalTrust
Hinduja Investments and Project services limited
Annual Report 2022-23 279
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Ashok Leyland Employees Gratuity Fund
AshokLeyland SuperannuaonFund
AshokLeyland EmployeesEnnore ProvidentFund Trust
AshokLeyland Senior ExecuvesProvidentFund Trust
AshokLeyland EmployeesHosur ProvidentFund Trust
AshokLeyland EmployeesBhandara ProvidentFund Trust
AshokLeyland EmployeesAlwar ProvidentFund Trust
Ennore Foundries Limited Employees Provident Fund
Ennore Foundries Gratuity Fund
Ennore Foundries Employees Pension cum Insurance Fund
EnnoreFoundries SeniorExecuvesSuperannuaonFund
GlobalTVS EmployeesGratuityFund
Key Management Personnel
Mr. Dheeraj GHinduja, ExecuveChairman ............................................................................................... From November 26, 2021
Mr. Dheeraj GHinduja, Non-ExecuveChairman ....................................................................................... Upto November 25, 2021
Mr. Vipin Sondhi, Managing Directorand CEO ............................................................................................. uptoDecember 31, 2021
Mr. Shenu Agarwal,Managing Directorand CEO .......................................................................................... From December8, 2022
Mr. Gopal Mahadevan,Whole-me Directorand Chief Financial Ocer
Prof. Dr. AndreasH Biagosch
Dr. Andrew CPalmer ...................................................................................................................................... Upto November 3, 2022
Mr. Jean Brunol
Mr. Jose Maria Alapont
Ms. Manisha Girotra
Mr. Sanjay KAsher
Mr. Saugata Gupta
Mr. Shom Ashok Hinduja ............................................................................................................................. From November 12, 2021
Dr. CB Rao
Note:
TransaconwithRajalakshmi WindEnergyLimited (erstwhileAshok LeylandWind EnergyLimited)and PrathamaSolarconnectEnergy
Private Limited have not been disclosed as being with associate since the Parent Company does not have signicant inuence over
Rajalakshmi Wind Energy Limited and Prathama Solarconnect Energy Private Limited, although the Parent Company holds 26% of the
equityshare capitalof Rajalakshmi WindEnergy Limitedand PrathamaSolarconnectEnergy PrivateLimitedrespecvely.
* The Parent Company has inmated Ocorian Trust (Isle Of Man) Limited as signicant benecial owner pursuant to the Companies
(SignicantBenecial Owners)Rules, 2018
280 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
Fellow Subsidiaries Associates Holding Company
Management
Personnel
Key Management
Personnel
Total
the year ended
1 Purchase of raw materials,
components and traded
goods(net of GST)
181.99
103.30 1.64 1.73
130.61 56.66 - - - - - - - - - -
314.24
161.69
2 Sales and services (net
ofGST)
53.50 32.28 42.35 99.97 0.60 0.74 - - 0.88 (0.15) - - - - - - 97.33
132.84
3 Other operangincome
- - - - 2.18 2.13 - - - - - - - - - - 2.18 2.13
4 Other expenditure
incurred/ (recovered)
(net) 49.06 46.46 6.17 0.82 (0.04) 0.01 1.90 2.60 (0.85) (0.16) - - 0.38 - - - 56.62 49.73
5 Interest and other income
2.11 2.12 0.85 0.78 0.19 0.31 - 0.70 - - - - - - - - 3.15 3.91
6 Interest expense
- - - - - - 1.80 0.01 - - - - - - - - 1.80 0.01
7 Financial Guarantee Given
- - - - - 12.50 - - - - - - - - - - - 12.50
8 Financial Guarantee
Released - - - - 3.13 14.70 - - - - - - - - - - 3.13 14.70
9 Sale of asset
- - - - - - - - - - - - - - - 0.29 - 0.29
10 Dividend payments
- - - - - -
149.35 89.61 - - - - - - - -
149.35 89.61
11 Remuneraontokey
management personnel** - - - - - - - - - - - - - - 47.67 49.14 47.67 49.14
12 Commission andsing
fees to key management
personnel* - - - - - - - - - - - - - - 6.56 5.33 6.56 5.33
13 Investments in shares of
# - - - - 2.50 - - - - - - - - - - # 2.50
14 Borrowings taken
- - - - - -
131.63 0.36 - - - - - - - -
131.63 0.36
15 Borrowings repaid
- - - - - - - 0.36 - - - - - - - - - 0.36
16 Contribuon to employee
related trusts made during
the year - - - - - - - - - -
212.14
204.21 - - - -
212.14
204.21
17 Sale of asset in lieu of
allotment of equity shares - - - - 8.74 - - - - - - - - - - - 8.74 -
18 Purchase of Asset
- - - - 5.05 - - - - - - - - - - - 5.05 -
19 Allotment of Equity Shares
- - - - - -
144.92 - - - - - - - - -
144.92 -
*Includes commission and sing feestootherdirectorsaggregangto ` 6.40crores(2022: ` 4.57 crores)
Allthe transacons are atarms length.
**pursuanttoseparaonofthe directoran amount of` 10.33croresisreversedinprotand loss accountdueto forfeitureofESOPs.
FortheyearendedMarch31,2022,theremuneraon paidtocertaindirectors of theParentCompanyamounngto` 17.81 crores was in excess of the limit prescribed under the Companies Act, 2013 and it
wasapprovedbythe shareholdersin the Annual GeneralMeeng, inaccordancewith the provisionsof the CompaniesAct, 2013, as amended frommeto me.
Annual Report 2022-23 281
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
Fellow Subsidiaries Associates Holding Company
Management
Personnel
Key Management
Personnel
Total
the year ended
1 Purchase of raw materials,
components and traded
goods(net of GST)
181.99
103.30 1.64 1.73
130.61 56.66 - - - - - - - - - -
314.24
161.69
2 Sales and services (net
ofGST)
53.50 32.28 42.35 99.97 0.60 0.74 - - 0.88 (0.15) - - - - - - 97.33
132.84
3 Other operangincome
- - - - 2.18 2.13 - - - - - - - - - - 2.18 2.13
4 Other expenditure
incurred/ (recovered)
(net) 49.06 46.46 6.17 0.82 (0.04) 0.01 1.90 2.60 (0.85) (0.16) - - 0.38 - - - 56.62 49.73
5 Interest and other income
2.11 2.12 0.85 0.78 0.19 0.31 - 0.70 - - - - - - - - 3.15 3.91
6 Interest expense
- - - - - - 1.80 0.01 - - - - - - - - 1.80 0.01
7 Financial Guarantee Given
- - - - - 12.50 - - - - - - - - - - - 12.50
8 Financial Guarantee
Released - - - - 3.13 14.70 - - - - - - - - - - 3.13 14.70
9 Sale of asset
- - - - - - - - - - - - - - - 0.29 - 0.29
10 Dividend payments
- - - - - -
149.35 89.61 - - - - - - - -
149.35 89.61
11 Remuneraontokey
management personnel** - - - - - - - - - - - - - - 47.67 49.14 47.67 49.14
12 Commission andsing
fees to key management
personnel* - - - - - - - - - - - - - - 6.56 5.33 6.56 5.33
13 Investments in shares of
# - - - - 2.50 - - - - - - - - - - # 2.50
14 Borrowings taken
- - - - - -
131.63 0.36 - - - - - - - -
131.63 0.36
15 Borrowings repaid
- - - - - - - 0.36 - - - - - - - - - 0.36
16 Contribuon to employee
related trusts made during
the year - - - - - - - - - -
212.14
204.21 - - - -
212.14
204.21
17 Sale of asset in lieu of
allotment of equity shares - - - - 8.74 - - - - - - - - - - - 8.74 -
18 Purchase of Asset
- - - - 5.05 - - - - - - - - - - - 5.05 -
19 Allotment of Equity Shares
- - - - - -
144.92 - - - - - - - - -
144.92 -
*Includes commission and sing feestootherdirectorsaggregangto ` 6.40crores(2022: ` 4.57 crores)
Allthe transacons are atarms length.
**pursuanttoseparaonofthe directoran amount of` 10.33croresisreversedinprotand loss accountdueto forfeitureofESOPs.
FortheyearendedMarch31,2022,theremuneraon paidtocertaindirectors of theParentCompanyamounngto` 17.81 crores was in excess of the limit prescribed under the Companies Act, 2013 and it
wasapprovedbythe shareholdersin the Annual GeneralMeeng, inaccordancewith the provisionsof the CompaniesAct, 2013, as amended frommeto me.
` Crores
Fellow
Subsidiaries
Associates
Holding
Company
Management
Personnel
Key
Management
Personnel
Total
1 Tradereceivables(Refer
Notes1.4 and 1.12) 21.07 11.91 22.86 55.42 0.13 0.52 - - 1.09 0.18 - - - - - - 45.15 68.03
2 Other nancial and non-
nancialassets (Refer
Notes 1.9, 1.15 and 1.16) - 1.06 - - 0.10 5.17 - - - - 0.21 0.22 - - - - 0.31 6.45
3 Borrowings
(Refer Note 1.25) - - - - - - 85.89 - - - - - - - - - 85.89 -
4 Tradeand other payables 36.17 26.74 8.21 0.63 6.48 5.56 4.10 0.07 - 0.12 18.52 16.85 0.35 - 23.83 5.08 97.66 55.05
5 Financial guarantees - - - - 6.88 10.00 - - - - - - - - - 6.88 10.00
282 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
1.
Gulf Oil Lubricants India Limited 166.11 95.22
Ashley Alteams India Limited 130.61 56.66
2.
Gulf Oil Lubricants India Limited 53.33 32.28
Lanka Ashok Leyland PLC 23.01 80.35
AshokLeyland DefenceSystemsLimited 19.34 19.62
3.
Ashley Alteams India Limited 2.18 2.13
4.
HindujaAutomove Limited,United Kingdom 1.90 2.60
Lanka Ashok Leyland PLC 7.64 0.64
AshokLeyland DefenceSystemsLimited (1.47) 0.18
Prathama Solar Connect Energy Private Limited 41.45 40.67
Hinduja Renewables Private Limited 7.42 6.70
5. Interest and other income
AshokLeyland DefenceSystemsLimited 0.85 0.78
Gulf Oil Middle East Limited 2.11 1.79
HindujaAutomove Limited,United Kingdom - 0.70
GulfOil InternaonalLimited - 0.33
6.
HindujaAutomove Limited,United Kingdom 149.35 89.61
7. Investment in shares of
Ashley Alteams India Limited - 2.50
HR Vaigai Private Limited # -
8.
HindujaAutomove Limited,United Kingdom 144.92 -
9. Sale of asset in lieu of allotment of equity shares
ZebeyondLimited, UK 8.74 -
10. Purchase of asset
Ashley Alteams India Limited 5.05 -
11. Sale of asset
Mr. Vipin Sondhi - 0.29
12. Borrowing taken
HindujaAutomove Limited,United Kingdom 131.63 0.36
13. Borrowing repaid
HindujaAutomove Limited,United Kingdom - 0.36
14.
HindujaAutomove Limited,United Kingdom 1.80 0.01
15.
interest recovered
AshokLeyland EmployeesEnnore ProvidentFund Trust 52.95 47.10
AshokLeyland EmployeesHosur ProvidentFund Trust 47.35 41.95
AshokLeyland Senior ExecuvesProvidentFund Trust 49.38 45.77
Ashok Leyland Employees Gratuity Fund 19.36 30.21
AshokLeyland SuperannuaonFund 16.06 15.21
Ennore Foundries Gratuity Fund 5.37 4.11
Ennore Foundries Limited Employees Provident Fund 12.52 11.35
Annual Report 2022-23 283
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
16.
Mr. Dheeraj GHinduja 0.16 0.76
Commissionand sing feesto other directors in aggregate 6.40 4.57
17. Financial Guarantee Given
Ashley Alteams India Limited - 12.50
18. Financial Guarantee Released
Ashley Alteams India Limited 3.13 14.70
19.
Mr. Vipin Sondhi
Shortterm employeebenets - 14.65
Otherlong term employeebenets - 0.08
Share-based payment@ - -
Mr. Shenu Agarwal
Shortterm employeebenets 1.41 -
Otherlong term employeebenets - -
Mr. Gopal Mahadevan
Shortterm employeebenets 14.00 5.65
Otherlong term employeebenets 0.08 0.08
Share-based payment 2.26 2.62
Mr. Andrew C Palmer
Employeebenets paidby subsidiary 11.92 24.32
Mr. Dheeraj GHinduja
Shortterm employeebenets 17.92 1.66
Otherlong term employeebenets 0.08 0.08
#Amount is below roundingo norms adoptedby theGroup.
@pursuant to separaon of the director an amount of ` 10.33 crores were reversed in prot and loss account due to forfeiture of
ESOPs during the year ended March 31, 2022.
* Excludes contribuon for gratuity and compensated absences and long term incenve plan as the incremental liability has been
accounted for the Group as a whole.
Group as lessee
1) Single discountratehas been appliedfor leaseswith same characteriscs.
2) Non - leasecomponents which aredicult tobe separatedfromthe lease componentsare taken as a partof the lease calculaon.
3) Short term leases i.e., leases having lease term of 12 months or less has been ignored forthe purpose of calculaon of right-of-use
asset.
Expenses for the year ended March 31, 2023 includes lease expense classied as short term lease of `24.20 crores (March 31, 2022:
`24.90crores),lowvalueleasesof` 0.03 crores (March 31, 2022: `0.01crores)andvariableleasepaymentsaggregangto` 63.55 crores
(March 31, 2022: `64.82 crores)which are not required to be recognised as per praccal expedient under Ind AS 116 'Leases' menoned
above.
284 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
a) Claims against the Group not acknowledged as debts (net)
i)Sales tax /VAT/ GST # 276.78 273.80
ii) Excise duty # 9.20 8.68
iii)Service Tax # 111.88 111.43
iv)Customs Duty# 0.43 0.43
v) Income tax $ 8.43 143.19
vi) Others 43.42 46.49
b) Corporate guarantees given to others for loans taken by a joint venture company 6.88 10.00
c) Share of conngentliabilies ofjoint ventures 1.71 3.15
d) Bank guarantees 2.08 2.00
$Theserelatestoissuesof deducbilityandtaxabilityinrespectofwhichtheGroupisinappealandinclusiveoftheeectofsimilar
maers in respectof assessments remainingto be completed
#These havebeen disputed bythe Group onaccount of issuesof applicability and classicaon.
Futurecashoulowsin respectofthe abovearedeterminableonlyon receiptofjudgement/ decisionspending withvariousforums
/authories.
Notes:
The Group (enes operang in India) evaluated the impact of the recent Supreme Court Judgment in relaon to non-exclusion of
certain allowances from the denion of "basic wages" of the relevant employees for the purposes of determining contribuon to
providentfundundertheEmployees'ProvidentFunds&MiscellaneousProvisionsAct,1952andtheManagementbelievesthatfurther
clarityisrequiredonthismaerforthemeperiodpriortoMarch31,2019.However,itisnotlikelytohaveasignicantimpactand
accordingly, noprovision has beenmade in the consolidatednancial statement.
The Group is involved in various claims and acons in the ordinary course of business. The Group accrues a liability when a loss is
considered probable and the amount can be reasonably esmated. In the opinion of the management the outcome of any exisng
claims, legal and regulatory proceedings, if decided adversely, is not expected to have a material adverse eect on the business,
nancialcondion, results ofoperaonsand cash owsof the Groupbased on the currentposion of suchclaims / legalacons.
As at
As at
` Crores ` Crores
a) Capital commitments (net of advances) not provided for 295.56 317.25
[including ` 9.70 crores (March 2022: `19.55 crores)in respectof intangibleassets]
b) Share of commitments of joint ventures 0.18 0.88
c) Uncalled liabilityon partly paid shares/ investments # #
d) Other commitments
(i) Financial support given to certain joint ventures
Theoulow in respectof the aboveis not praccableto ascertainin view of theuncertaines involved.
#Amount is below roundingo norms adoptedby theGroup.
Annual Report 2022-23 285
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
current
Current
Total
current
Current
Total
` Crores ` Crores ` Crores ` Crores ` Crores ` Crores
a. Secured Borrowings:
i.
7.45%p.a. to 9.25%p.a (March
2022: 7.45% p.a to 9.25%
p.a.) Secured redeemable non-
converbledebenturesSub 1
79.77 1,004.33 1,084.10 8,800 debentures with a face value of
` 10,00,000/- and 8,000 debentures with face
value of ` 1,00,000/- (31 March 2022 13,300)
were outstanding as on 31 March 2023.
Redempon period ranging from 24 months to
3 years from the date of allotment
878.51 629.65 1,508.16
Series 3 200.00 - 200.00 Bullet repayment at the end of 5 years from
the date of allotment i.e. March 17, 2027. The
Parent Company has a call opon to redeem
thedebenturesaerthe end of 3 year
200.00 - 200.00
Series 2 - 200.00 200.00 Bullet repayment at the end of 3 years from the
date of allotment i.e. June 23, 2023
200.00 - 200.00
Series 1 - 400.00 400.00 Bullet repayment at the end of 3 years from the
date of allotment i.e. May 19, 2023
400.00 - 400.00
ii. Term loans:
TL- 1 - Sub 1 16,037.22 6,851.18 22,888.40 5.25% to 9.40% p.a. repayable in varying
installments in 3 months to 5 years
10,526.77 5,839.09 16,365.86
TL-12 300.00 100.00 400.00 Repayable annually in 5 equal installments
starngfromSeptember9,2022
400.00 100.00 500.00
TL-13 225.00 75.00 300.00 Repayable annually in 4 equal installments
starngfromMay12,2023
300.00 - 300.00
TL-14 37.50 25.00 62.50 Repayable semi annually in 8 equal installments
starngfromFebruary28,2022
62.50 25.00 87.50
TL-15 96.25 3.75 100.00 Repayable quarterly in 20 installments of
varyingamountsstarngfromJuly 1, 2023
100.00 - 100.00
TL-16 200.00 - 200.00 Repayable annually in 5 equal installments
starngfromMarch25,2025
200.00 - 200.00
TL-17 225.00 12.50 237.50 Repayable semi annually in 12 installments of
varying amounts starng from September 30,
2022
237.50 12.50 250.00
TL-1-Sub 2 254.49 - 254.49 Repayableby November 29, 2024 in two equal
half yearly installments.The term loan has a
moratorium period of 2 years
- - -
TL-2-Sub 2 234.89 - 234.89 ` 160 Croresto be repaidbyMarch31, 2025;
balance by September 28, 2029
- - -
TL-3-Sub 2 59.43 - 59.43 Repayable in equal monthly installments
commencingfromApril 1, 2024
- - -
TL-1- Sub 3 152.47 - 152.47 The loan is repayable in quarterly installments
overaperiodofsevenyearsstarngfromApril
2024
- - -
286 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1. (i) TL -12- Term loan wassecuredby wayofrstrankingchargeon the speciedplant andmachinery of amanufacturing unitof
the Parent Company located at Pantnagar to the extent of `400crores.
(ii) TL-13-Termloanwassecuredbywayofrstrankingchargeonthespeciedplantandmachineryof themanufacturingunits
ofthe ParentCompanylocatedat Hosur tothe extentof 1.25mes of the amountof loan.
(iii) TL - 14 - Term loan was secured by way of exclusive charge on the specied plant and machinery and other moveable xed
assetsof amanufacturing unitof the ParentCompanylocatedatPantnagartothe extentof1.10 mesof the amountof loan.
(iv) TL - 15 - Term loan was secured by way of exclusive charge on the specied plant and machinery and other moveable xed
assets of the manufacturing units of the Parent Company located at Pantnagar and Hosur to the extent of 1.25 mes of the
amount of loan.
(v) TL-16 -Term loanwas securedbywayofrstrankingchargeonthe specied plantandmachinery ofthe manufacturingunits
of the Parent Company located at Chennai to the extent of ` 200 Crores.
(vi) TL -17- Term loanwassecuredby wayofrstrankingchargeonthe speciedplantand machinery ofthe manufacturingunits
ofthe ParentCompanylocatedat Hosur andBhandara tothe extentof 1.10 mesof the amount ofloan.
(vii) NCD - Series 1 - 8% AL 2023 relang to Parent Company are secured by way of rst ranking charge over specic plant and
machinery of manufacturing and research and development units situated at Ennore, Pantnagar, Hosur and Vellivoyalchavadi
and specic immoveable properes of manufacturing unit at Ennore to the extentof 1.10 mes of the amount of debentures
and interest accrued thereon.
(viii) NCD - Series 2 -7.65% AL 2023 relangto Parent Companyare securedby wayof FirstRanking chargeoverspecic plant and
machineryofthemanufacturingunitssituatedatHosurandAlwarandspecicimmoveableproperessituatedatmanufacturing
unitat Ennoreto the extentof 1.10mes of the amountof debenturesand interestaccrued thereon.
(ix) NCD -Series 3 - 7.30% AL 2027relang toParentCompanyaresecured by wayofFirstRanking chargeover specic plantand
machineryofmanufacturingunitsituatedatHosurtotheextentof1.10mesoftheamountofdebenturesandinterestaccrued
thereon.
2. Debenturesofasubsidiary(Sub1)aresecuredbyarstrankingmortgageof animmovablepropertyinfavouroftrusteesinaddion
toexclusivechargeon hypothecaonof specic loan receivableswith a securitycover of110% as per the termsof issue.
3. Term loans availed by a subsidiary from various banks (TL-1 - Sub 1) are secured by exclusive charge by way of hypothecaon of
specicreceivablesand investmentsin passthrough cercateswith security covers rangingfrom 102%to 112% of loanamount.
4. The assets pledged as security for borrowings relang to subsidiaries engaged in nancing acvies includes nancial assets
(loans and investments)amounng to ` 30,233.42 crores (March 2022: nancial assets (loans and investments)and land amounng
to ` 22,947.28 crores).
5. Term loan availed by a subsidiary (TL -1- Sub 3) is secured by way of an exclusive charge over stocks, current assets and plant and
machinery of the subsidiary and guarantee.
6. Termloanavailedbyasubsidiary(TL-1-Sub2,TL-2-Sub2,TL-3-Sub2)issecuredbywayofanexclusivechargeonallspecicproject
assets and receivables of the subsidiary.
iii. Other loans:
current
Current
Total
current
Current
Total
` Crores ` Crores ` Crores ` Crores ` Crores ` Crores
SIPCOTSo Loan 31.18 - 31.18 Repayable by August 1, 2025 31.18 - 31.18
Loan - Sub 1 - 7.00 7.00 Repayable on April 21, 2023 - - -
1. The above SIPCOT so loan availed by the Parent Company are secured by way of rst charge on the xed assets created and the
sameshall be on pari passu withother rstchargeholders of LCVdivision.
2. Loan - Sub 1 relangtoa subsidiary is securedby wayof hypothecaonofinventoryand debtorsof the subsidiary
The companies in theGroup, whereapplicable, has registered the charges /sasfaconof charges withthe Registrarof Companies within
thespulatedperiod.
Annual Report 2022-23 287
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
b.
i.
current
Current
Total
current
Current
Total
` Crores ` Crores ` Crores ` Crores ` Crores ` Crores
ECB - 16 112.05 56.03 168.08 Repayable annually in 3 equal installments
starngfromNovember 18,2023
152.24 - 152.24
ECB - 15 54.78 54.78 109.56 Repayable annually in 3 equal installments
starngfromFebruary 28,2023
101.06 50.53 151.59
ECB- 14 219.12 219.12 438.24 Repayable annually in 3 equal installments
starngfromSeptember 23,2022
404.22 202.11 606.33
ii.
9.20% p.a. to 11.60% p.a.
- Subordinated redeemable
non-converbledebentures
- Sub 1
843.43 - 843.43 9,750 (March 31, 2022: 11,550)
debentures with a face value of
` 10,00,000/-were outstandingas on
March31, 2023. Redemponperiod
rangingfrom5.4 yearsto 7years
966.55 - 966.55
current
Current
Total
current
Current
Total
` Crores ` Crores ` Crores ` Crores ` Crores ` Crores
iii.
loans:
Programme II 66.41 - 66.41 Varying amounts repayable on a periodical
basis ending on June 2028
66.41 - 66.41
iv. Other subordinated loans:
11.31% p.a. - Subordinated
loans - Sub 1
74.93 - 74.93 Redemponperiod is 5.5years 74.86 - 74.86
Theabove debentures,termloans, externalcommercial borrowingsand loans fromotherscarry varyingratesof interestwith the
maximum rate of interest going upto 11.60% p.a. (as at March 31, 2022: 11.60% p.a.) .
288 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
II Current borrowings:
As at
As at
` Crores ` Crores
a Secured borrowings
-STL 1 Sub 1 848.10 Repayable on demand 640.71
-STL 3 Sub 6 18.00 Repayable on demand 31.00
-STL 1 Sub 7 9.00 Repayable on demand 3.00
-STL 2 Sub 7 8.38 Repayable on demand 11.53
-STL 2 Sub 5 125.22 Repayable within 6 months 117.91
-STL 3 Sub 5 17.89 Repayable on May 31, 2023 16.84
-STL 1 Sub 8 115.77 Repayable on demand 60.46
-STL 1 Sub 9 - Repayable on demand 16.19
-STL 1 Sub 12 30.49 Rollover annually on June 3, 2023 29.84
-STL 1 Sub 10 3.44 Repayable on demand -
- Bills discounted 13.06 Repayable on various dates upto August 2023 -
-STL 2 Sub 12 304.94 Repayable on July 25, 2023 -
-STL 1 Sub 11 15.23 Repayable on demand -
1. STL 1 Sub 1 relangto a subsidiary are cashcredit facilies and working capital demand loans from banks which are securedby way of a
paripassu chargeon the receivablesdue tothe subsidiary other than those thatare specicallychargedto the lendersof the subsidiary.
2 STL 3 Sub 6 relang to a subsidiary is a working capital demand loan which is secured by way of hypothecaonof bills receivables, book
debt, inventoriesand all other moveable assets both present and future of the subsidiary amounng to ` 37.24 crores. (March 31, 2022:
` 50.85 crores).
3. STL 1 and STL 2 Sub 7 relang to a subsidiary are secured by way of a pari passu rst charge on current assets (including stocks of raw
materials,storesand spares, work-in-progress, nished goods and books debts) both present and future of the subsidiary to the extentof
` 25.00 crores (March 31, 2022: ` 25.00 crores).
4. STL1Sub8relangtoasubsidiaryaresecuredbywayofachargeontradereceivables,inventoriesandassignmentofriskinsurancepolicy
coveringinventories of the subsidiary companyand alsobackedby leerof comfortissued by theParentCompany.
5. STL 2and STL3Sub 5 relangtoasubsidiary isin thenatureof anoverdrafacilitywhichis securedbycorporateguaranteegivenbythe
Parent Company.
6. STL 1 Sub 9 relang to a subsidiary is in the nature of a working capital demand loan which is secured against inventories and trade
receivablesofthe subsidiary amounng to` 269.86 crores (March 31, 2022: ` 261.21 crores).
7. STL1Sub10relangtoasubsidiaryisinthenatureofaoverdrafacilitywhichissecuredbyhypothecaonofbookdebtsofthesubsidiary.
8. Workingcapitaldemandloansfrombanks/ BillsdiscountedrelangtoParentCompanyaresecuredbywayofhypothecaonofthewhole
stocks of Raw Materials, Semi Finished and Finished goods, Stores and Spares not related to Plant and Machinery (Consumable stores
and spares) Bills Receivable, Book Debts and all other movables both present and future now lying or stored about the factory premises,
godowns,warehouses,yardsand anyother locaons tothe extentof ` 2,000 crore (March 31, 2022: ` 2,000 crores).
9. STL 1 Sub12 and STL 2 Sub12 relangto a subsidiary issecured againstassetsand undertakings of thesubsidiary.
Annual Report 2022-23 289
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
As at
As at
` Crores ` Crores
b
-STL 25 150.00 Repayable on August 25, 2023 -
-STL 24 - Repaid on August 30, 2022 150.00
-STL 1 Sub 8 82.16 Repayable on demand 75.78
-STL 2 Sub 3 250.05 Repayable on July 11, 2023 244.66
-STL 4 Sub 3 9.89 Repayable on demand -
-STL 5 Sub 3 85.89 Repayable on 30th June 2023 -
-STL 6 Sub 3 20.33 Repayable on October 6, 2023 19.89
-STL 7 Sub 3 - Repaidon December31, 2022 249.01
- Bills discounted 105.57 Repayable/ Repaidon variousdates uptoDecember 2023 /
October 2022
116.83
- Commercial Paper 196.42 Commercial papers are issued for a period ranging from 36 days to
93 days
-
Theaboveoutstandingborrowingscarry varyingratesofinterest withthemaximumrateofinterestgoingupto9.40%p.a. (asatMarch31,
2022: 8.00% p.a.).
The carrying value of the above borrowings (as reected in Notes 1.20 and 1.26) are measured at amorsed cost using eecve interest
method while the above borrowings represents principal amount outstanding.
` Crores ` Crores
1. Cash and cash equivalents 1,908.58 2,030.96
2. Liquid investments 3,171.40 1,298.05
3. Current borrowings (2,418.48) (1,785.11)
4.Non-current borrowings (28,560.31) (22,205.58)
5.DerivaveAsset / (Liability) 97.50 34.10
6.Lease Liabilies (240.49) (205.67)
Net debt
290 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores
Other assets
Cash and Cash
Liquid
investments
borrowings
Current
borrowings
Lease
Total
1,481.04 - (21,339.66) (2,603.66) (8.95) (187.06) (22,658.29)
Cashows (net) 550.26 1,283.82 (833.06) 816.81 - 50.55 1,868.38
Foreign exchange adjustments (0.34) - (31.23) 3.65 - 0.36 (27.56)
Prot/ (loss) onsale of liquid
investments (net) - 13.31 - - - - 13.31
Interest expense - - (196.93) (111.58) - (8.72) (317.23)
Interest paid - - 193.23 111.74 - - 304.97
Other non-cash movements
- Addion / Deleon(Net)
relangtolease liabilies - - - - - (60.80) (60.80)
- Fair value adjustments - 0.92 - - 43.05 - 43.97
- Conversion of loan into
equity by a subsidiary - - 2.07 (2.07) - - -
Cashows (net) (153.63) 1,839.62 (6,307.77) (605.21) - 66.97 (5,160.02)
Pursuanttobusiness combinaon 28.47 - - - - - 28.47
Foreign exchange adjustments 2.78 - (44.15) (20.97) - (62.34)
Prot/ (loss) onsale of liquid
investments (net) - 30.05 - - - - 30.05
Interest expense - - (233.74) (106.21) - (14.50) (354.45)
Interest paid - - 230.93 99.02 - - 329.95
Other non-cash movements
- Addion / Deleon(Net)
relangtolease liabilies - - - - - (87.29) (87.29)
- Fair value adjustments - 3.68 - - 63.40 - 67.08
Note:
Non-currentborrowingsand interestexpense is grossof impact onaccount of eecveinterestrate changes.
Annual Report 2022-23 291
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Name of subsidiary
As at
As at
Hinduja Leyland Finance Limited and
its subsidiaries
Relangtonancing acvies Chennai - India 60.42% 68.80%
GlobalTVS Bus Body BuildersLimited Relangto commercialvehicle Madurai - India 66.67% 66.67%
Gulf Ashley Motor Limited Tradingin commercialvehicle Chennai - India 93.15% 93.15%
Optare PLC and its subsidiaries Manufacturing of commercial vehicle UnitedKingdom 91.63% 91.63%
Ashok Leyland (Nigeria) Limited Tradingin commercialvehicle Nigeria 100.00% 100.00%
Ashok Leyland (Chile) SA Tradingin commercialvehicle Chile 100.00% 100.00%
HLF Services Limited Manpower supply services Chennai - India 81.73% 85.58%
Ashok Leyland (UAE) LLC and its
subsidiaries
Manufacturing of commercial vehicle UAE 100.00% 100.00%
Albonair (India) Private Limited Relangto commercialvehicle India 100.00% 100.00%
Albonair GmbH and its subsidiary Relangtocommercialvehicle Germany 100.00% 100.00%
AshleyAviaonLimited Relangtoair chartering services India 100.00% 100.00%
HindujaTech Limited,its subsidiaries
and joint venture
RelangtoIT services Chennai - India 73.83% 98.91%
Vishwa Buses and Coaches Limited Relangto commercialvehicle Chennai - India 100.00% 100.00%
GroDigitalPlaormsLimited
(fromApril 14, 2021)
Relangtocommercialvehicle Chennai - India 80.21% 84.40%
Ownershipinterestincludes joint holding and benecialinterest.
Informaonabout thecomposion of the Groupat the endof the reporngperiod is as follows:
Manufacturing of commercial vehicle UAE 1 1
Tradingin commercialvehicle Russia* 1 1
Tradingin commercialvehicle Ivory Coast* 1 1
Tradingin commercialvehicle Nigeria 1 1
Tradingin commercialvehicle Chile 1 1
Relangtocommercialvehicle India 2 2
Relangtocommercialvehicle Germany 1 1
Relangtocommercialvehicle China* 1 1
Relangtoair chartering services India 1 1
* wholly owned step down subsidiaries
Also refer Note 3.1
Relangtonancing acvies Chennai - India 4 3
Relangtocommercialvehicle Madurai - India 1 1
Relangtocommercialvehicle Chennai - India 1 1
Manufacturing of commercial vehicle UnitedKingdom** 8 7
Tradingin commercialvehicle Chennai - India 1 1
Manpower supply services Chennai - India 1 1
RelangtoIT services Chennai - India** 9 5
**includes 8 stepdown subsidiaries relangtoIT servicesand 7 stepdown subsidiaries relangtomanufacturing of commercialvehicles
292 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The tablebelow shows detailsof non wholly-ownedsubsidiariesof the Groupthat havematerialnon-controllinginterests:
Name of subsidiary
Place of
principal place of
business
interests
Total comprehensive income
interests
interests
` Crores ` Crores ` Crores ` Crores
Hinduja Leyland Finance
Limited and its subsidiaries Chennai - India 39.58% 31.20% 207.64 41.25 2,215.14 1,278.54
Individually immaterial
subsidiaries with non-
controlling interests (54.35) (32.47) 29.67 7.73
Summarisednancial informaoninrespectofeach ofthe Group’s subsidiariesthathas materialnon-controlling interestsis setoutbelow.
Thesummarised nancial informaonbelow representsamounts beforeintra-groupeliminaons.
As at
As at
` Crores ` Crores
Current assets 11,076.85 8,252.12
Non-current assets 21,340.66 16,218.89
Total assets
Currentliabilies 9,446.99 7,610.02
Non-currentliabilies 17,373.90 12,763.11
Equityaributableto ownersof the Company 3,381.48 2,819.34
Non-controlling interests 2,215.14 1,278.54
Annual Report 2022-23 293
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
` Crores ` Crores
Revenue 3,501.55 3,097.96
Expenses (including tax) 3,007.94 2,758.25
Protaributableto ownersof the Company 318.92 233.72
Protaributableto the non-controllinginterests 174.69 105.99
OtherComprehensive Incomeaributableto ownersof the Company 60.16 (142.76)
OtherComprehensive Incomeaributableto the non-controllinginterests 32.95 (64.74)
Other Comprehensive Income for the year
TotalComprehensive Incomeaributableto ownersof the Company 379.08 90.96
TotalComprehensive Incomeaributableto the non-controllinginterests 207.64 41.25
Total Comprehensive Income for the year
Dividendspaid to non-controllinginterests - -
Netcash (oulow) /inow fromoperangacvies (6,173.91) 295.59
Netcash oulow frominvesngacvies (830.11) (396.31)
Netcash inowfrom nancing acvies 7,240.09 92.71
Hinduja Leyland Finance Limited (HLFL), a subsidiary of the Group engaged in nancial services segment of the Group, has made an
applicaontoBSELimited(StockExchange)fortheproposedMergerwithNxtdigitalLimitedonNovember25,2022andthesaidapplicaon
is under process. HLFL is also in the process of ling applicaon to Compeon Commission of India (CCI) for the proposed merger and
in this regard had a pre-ling consultaon meengs with CCI during March / April 2023. Nxtdigital Limited (Transferee Company, whose
name has been changed to NDL Ventures Limited w.e.f. April 20, 2023) has also submied applicaon to Bombay Stock Exchange (BSE)
andNaonal Stock Exchangeof IndiaLtd(NSE) where its sharesare listedand formergerthey will bealso ling applicaon toCCI forthe
proposedmerger. NDL Ventures Limitedhas also submiedapplicaon toRBI forregistraonas NBFC on December23, 2022.
As at As at
` Crores ` Crores
Gross Goodwill at the beginning of the year 1,641.00 1,641.00
Add: Recognised during the year (Refer Note 3.18) 151.09 -
Gross Goodwill at the end of the year
Opening accumulated impairment 609.17 400.23
Add: Impairment during the year (Refer Note 3.25) 7.81 208.94
Closing accumulated impairment
Carrying amount of Goodwill
294 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Allocaonof goodwillto cash-generangunits
Eachofthesubsidiaries/LightCommercialVehicledivisionofParentCompanyisidenedasaseparatecashgenerangunit.Goodwillhas
beenallocatedfor impairmenttesngpurposes to these cash-generang units.
Thecarrying amount of goodwillwas allocatedtomajor cash-generangunitsas follows:
As at As at
` Crores ` Crores
Hinduja Leyland Finance Limited and its subsidiaries 426.47 426.47
Light commercial vehicle division of parent company 449.90 449.90
HindujaTech Limitedand its subsidiaries 276.30 125.21
Others 22.44 30.25
Cash-generang units to which goodwill is allocated are tested for impairment annually at each reporng date, or more frequently when
thereisanindicaonthattheunitmaybeimpaired.Iftherecoverableamountofthecash-generangunitislessthanthecarryingamount
ofthe unit,the impairmentlossis allocatedrsttoreducethecarrying amountofanygoodwill allocatedtothatunit.The Grouphasused
post tax discount rate ranging from 12.00% to 17.50% (March 2022: 10.50% to 18.50%) and terminal growth rate ranging from 1.00% to
4.00%(March 2022:1.00% to5.00%) forthe purpose ofimpairment tesngbased onthe nextfour tosix yearsprojectedcashows.Both
pre tax and post tax discount rategives the same recoverable amount. The Group believes that any reasonable further change in the key
assumponson which recoverable amount is based,would not causethe carrying amountto exceedits recoverable amount.
AlsoReferNotes1B.4, 1C, 3.18 and3.25.
Therearenoassociateswhichareindividually materialandthus,only aggregateinformaon ofassociatesthatarenotindividually material
is given below:
` Crores ` Crores
TheGroup's shareof prot 2.46 7.02
TheGroup's shareof other comprehensiveloss (0.77) (10.72)
As at As at
` Crores ` Crores
Aggregate carrying amount of the Group's interests in these associates 42.74 42.84
Annual Report 2022-23 295
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
There areno joint ventureswhich areindividually material and thus, only aggregateinformaonof joint venturesthat are not individually
material is given below:
` Crores ` Crores
TheGroup's shareof prot 8.29 0.50
TheGroup's shareof other comprehensiveincome - 0.03
The Group's share of total comprehensive income
As at As at
` Crores ` Crores
Aggregate carrying amount of the Group’s interests in these joint ventures 20.92 3.76
Also refer note 3.18
` Crores
i) Principalamount paid aerappointeddate during theyear 5.85 176.70
ii) Amount of interest due and payable for the delayed payment of Principal amount 0.02 -
iii) Principal amount remaining unpaid as at year end (over due) 0.86 2.96
iv) Principal amount remaining unpaid as at year end (not due) 82.07 67.43
v) Interest due and payable on principal amount unpaid as at the year end - 0.09
vi) Totalamount of interest accrued and unpaidas at yearend 0.33 0.30
vii) Further interest remaining due and payable for earlier years 0.30 0.21
Also refer notes 1.27 and 1.28
- On November 30, 2022, Hinduja Tech UK Limited (HTUK) and Hinduja Tech Inc, USA, wholly owned subsidiaries of Hinduja Tech Limited,
entered into a Share Purchase Agreement (SPA) to acquire 100% of the issued capital of Drive System Design Limited, UK (DSDUK) along
with its subsidiaries Drive SystemDesign SRO,Czech and Drive SystemDesign Inc, USA (DSD-USA) (collecvely referredto as ‘DSD Group’)
respecvelyforan upfrontcashconsideraonof GBP 21.7 millionand earn-out paymentsbased on futureperformance.
- Consequently the acquired enes became step-down subsidiaries of Hinduja Tech Limited, India eecve from November 30, 2022 on
sasfactory compleon ofthe closing condions underthe SPA and has beenconsolidatedwith eectfrom thatdate.
- The DSD group provides advanced engineering soluons to automove, commercial vehicle, o-highway, defence and aviaon industries
andspecialises in developing soluonsfor electriedpropulsion systems.
-Thefairvalueofthepurchaseconsideraonis`308.78crores,whichcomprisesofanupfrontconsideraonof`218.44crores,conngent
consideraon of ` 90.34 Croressubject tothe sasfaconof certaincondions.
- The fair value of the conngent consideraon, recognised on the acquision date is determined by discounng the esmated amount
payable to the previous owners on sasfacon of the condions by applying the discounted cash ow approach. The key inputs used for
theesmaon of fairvaluesare discountrateof3.5% and probabilies ofachievementof condions (assumed tobe 100%).
- As required by Ind-AS 103, Business Combinaons, the Company has accounted for the assets and liabilies of the DSD Group at their
respecvefairvalues,including the intangiblesand resultantgoodwill arising fromsuch acquision.
- Theacquisionisaccountedforbasedonprovisionalamountsinaccordancewithparagraph45ofIndAS103,pendingnaldeterminaon
of the fair value.
296 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The fair value of the idenable assets and liabilies of the DSD Group as at the date of the acquision were provisionally esmated as
below:
` Crores
Assets
Property, plant and equipment 45.03
Intangible assets 89.45
Otherassets (Net of liabilies)* 23.21
Total 157.69
Fairvalueof purchaseconsideraon(including fairvalue of conngentconsideraon) 308.78
Provisionalgoodwill arisingon acquision 151.09
* Includes cash and cash equivalents acquired of ` 28.47 crores
OnDecember21,2022,DriveSystemDesignLtd,UK(DSD)andAlvierMechatronicsAB(Alvier)formeda50:50jointventure,ZebeyondLtdin
theformofaPrivateLimitedCompany.TheJointventureCompanywasincorporatedinEnglandandWales.DSD-UKcontributedtechnology
intheformofsoware,whileAlviercontributedEUR1millionfortheirrespecvestakeinthejointventure.ThescopeoftheJointventure
is the development and commercializaon of the soware by way of granng user licenses to customers and delivering special bespoke
customer projects. This 50:50 Joint venture partnership ensures equal ownership and shared responsibilies between DSD and Alvier in
drivingthe success of ZebeyondLtd.
ThegroupdoesnothaveanytransaconswithstruckocompaniesunderCompaniesAct,2013orCompaniesAct,1956,duringtheyear,as
applicableexceptincaseof asubsidiary whichhad transaconwiththree companieswhichwas struckobeforeitwas declaredasstruck
oand there is nooutstanding balancetowardsthese pares.
TheGroup(exceptincaseofasubsidiary)[whereapplicable]hasnotadvancedorloanedorinvestedfundstoanyotherpersonsorenes,
including foreign enes (Intermediaries)with the understanding that the Intermediaryshall:
a. directly or indirectly lend or invest in other persons or enes idened in any manner whatsoever by or on behalf of the Group
(UlmateBeneciaries)or
b. provideanyguarantee,securityor the liketo oron behalf of the ulmatebeneciaries
The Group (except in case of a subsidiary) [where applicable] has not received any fund from any persons or enes, including foreign
enes(Funding Party)with the understanding(whetherrecordedin wring or otherwise)that the Groupshall:
a. directly or indirectly lend or investin other persons or enes idened in any manner whatsoeverby or on behalf of the Funding
Party(UlmateBeneciaries) or
b. provideanyguarantee,security or the like on behalf of the ulmatebeneciaries.
HindujaTechLimited(HTL)[Intermediary1],asubsidiaryoftheParentCompany,hasraised`88.00croresfromHindujaAutomoveLimited
(HoldingCompany)[FundingParty]bywayofissueofequitysharecapitalonNovember22,2022.ThishasbeenfurtherinvestedinHinduja
TechUK Limited(whollyownedsubsidiary ofHTLincorporatedduringthecurrentnancialyear)[Intermediary2]as equitysharecapitalby
subscribing to 10,000 shares and 1,08,00,000 shares of GBP 1 each on November 10, 2022 and March 06, 2023 at GBP 1.08 crores. The
funding raised and the subsidiary incorporated is for the purpose of acquision of Drive system Design Limited, UK (along with its wholly
ownedsubsidiary Drive SystemDesign SO,Czech)and DriveSystemDesign Inc,USA, forwhich Hinduja Tech UK Limitedhas paid GBP 2.17
crores (as upfront consideraon) to the erstwhile shareholders [ulmate benciary] of Drive system Design Limited, UK and Drive System
DesignInc, USAon November28, 2022. Therelevantprovisionsof theForeignExchangeManagementAct, 1999and Companies Act,2013
havebeencomplied with forsuch transaconsand the transaconsare notviolave of thePrevenonof Money-LaunderingAct, 2002.
No proceedings have been iniated on or are pending against the Group for holding benami property under the Benami Transacons
(Prohibion)Act, 1988 (45of 1988) and Rules made thereunder, where applicable.
TheGrouphas complied with thenumber of layersprescribed under the CompaniesAct, where applicable.
Annual Report 2022-23 297
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Thereis no income surrenderedor disclosed as income during the currentor previous year in the tax assessments under the Income Tax
Act, 1961, that has not been recorded in the books of account, where applicable.
TheGrouphas not tradedor investedin crypto currencyor virtual currencyduring the currentor previousyear, where applicable.
DuringtheyearendedMarch31,2023,theGrouphasrecordedanreversalofimpairmentof` 9.20 crores (March 31, 2022: impairment loss
on Goodwill and net assets `236.91crores)ofnetassetsofitssubsidiaryvizAlbonairGmbH(CashGenerangUnit(CGU))basedonfuture
business plan, internal and external factors and the independent valuers report. The discounted cash ow method uses post tax discount
rate rangingbetween10.50% - 13.50% forcurrentand previousyearsfortheaforemenonedenes.Both pretaxdiscount rate and post
tax discount rate gives the same recoverable amount.
TheGrouphas not enteredintoany schemeof arrangementwhich hasan accounng impacton currentor previous nancialyear.
The Code on Social Security, 2020 (‘Code’) relang to employee benets during employment and post-employment benets received
Presidenal assent in September 2020. The Code has been published in the Gazee of India. However, the date on which the certain
provisionsofthe Code willcome intoeectandthe rules thereunderhas notbeen noed. TheGroup willassess the impactof theCode
whenit comes intoeectand will recordany relatedimpactin the period the Code becomeseecve.
Thegures forthe previousyear havebeen reclassied/ regroupedwherevernecessaryincluding for amendmentsrelang toSchedule III
ofthe Companies Act, 2013 forbeerunderstandingand comparability.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
ExecuveChairman
DIN: 00133410
Shenu Agarwal
ManagingDirectorand
ChiefExecuveOcer
DIN: 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
298 Ashok Leyland Limited
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Part "A": Subsidiaries
(Statementpursuantto Secon 129 (3)of the Companies Act, 2013read with Rule5 of Companies (Accounts)Rules, 2014)
` Crores
S.no Subsidiary Acquired on
Country of
Currency
Share capital
money pending
Other
equity
Total
Total assets
Investments
of investments
Turnover
before
Other
Comprehensive
Income
Total
Comprehensive
Income
Shareholding
1 Hinduja Leyland Finance
Limited and its subsidiaries
April 1, 2013 India INR 535.02 5,061.60 26,820.89 32,417.51 1,817.83 3,501.55 656.52 162.91 493.61 93.11 586.72 60.42%
2 Global TVS BusBody Builders
Limited
December10, 2013 India INR 9.90 26.89 32.43 69.22 - 148.43 0.05 0.02 0.03 (0.09) (0.06) 66.67%
3 Gulf Ashley Motors Limited April 1, 2013 India INR 29.70 (23.75) 55.37 61.32 0.02 231.73 (5.70) (0.62) (5.08) (0.05) (5.13) 93.15%
4 Optare PLC and its subsidiaries April 1, 2013 UK GBP 899.37 (1,504.73) 2,203.28 1,597.92 - 229.72 (602.74) (19.95) (582.79) (27.13) (609.92) 91.63%
5 AshleyAviaonLimited January 1, 2019 India INR 38.70 (32.40) 9.93 16.23 - 14.88 (4.70) - (4.70) (0.07) (4.77) 100.00%
6 Ashok Leyland (Nigeria) Limited April 1, 2013 Nigeria NGN 0.36 0.51 14.90 15.77 - 11.91 1.31 0.43 0.88 - 0.88 100.00%
7 Ashok Leyland (Chile) SA April 1, 2013 Chile CLP 3.76 (3.50) 0.01 0.27 - - (0.04) - (0.04) - (0.04) 100.00%
8 HLF Services Limited April 1, 2013 India INR 0.05 14.47 20.15 34.67 - 182.79 3.28 0.94 2.34 1.16 3.50 81.73%
9 Ashok Leyland (UAE) LLC and
its subsidiaries
April 1, 2015 UAE AED 96.52 (58.67) 483.25 521.10 - 1,468.12 31.54 0.53 31.01 2.39 33.40 100.00%
10 Albonair (India) Private Limited April 1, 2013 India INR 45.00 100.32 231.23 376.55 - 1,048.48 96.80 24.71 72.09 0.11 72.20 100.00%
11 Hinduja Tech Limited, its
subsidiaries and joint venture
February 25, 2021 India INR 208.52 (2.83) 388.93 594.62 8.39 401.34 28.52 8.01 20.51 3.49 24.00 73.83%
12 Albonair GmbH, Germany and
its subsidiary
April 1, 2013 Germany EUR 372.38 (353.61) 235.33 254.10 - 373.28 (8.14) 0.86 (9.00) (0.20) (9.20) 100.00%
13 Vishwa Bus and Coaches
Limited
November 19, 2020 India INR 36.40 (8.68) 46.00 73.72 - 99.99 (5.36) (0.69) (4.67) (0.01) (4.68) 100.00%
14 GroDigitalPlaormsLimited April14, 2021 India INR 20.00 (9.55) 35.70 46.15 - 17.50 (9.30) 0.08 (9.38) (0.14) (9.52) 80.21%
Notes:
1 Reporngperiod of all enes menoned aboveis April toMarch
2 Thereis nodividend proposed by the above enes
3 Exchange rate used in case of foreign subsidiaries, associates and joint ventures are given below:
GBP CLP NGN LKR
Closing Rate 89.44 101.65 0.10 82.17 0.18 22.37 0.25
Average Rate 83.66 96.82 0.09 80.37 0.19 21.88 0.23
Annual Report 2022-23 299
NOTES ANNEXED TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
(Statementpursuantto Secon 129 (3)of the Companies Act, 2013read with Rule5 of Companies (Accounts)Rules, 2014)
` Crores
Sl.No
Latest Audited Balance
Sheet date
Shares held by the Parent Company
as at the year end
Reason for not
Networth
Total comprehensive
income for the year
No.
Investment
Held
`
Considered in
Not
considered in
1 Ashok LeylandDefenceSystems
Limited
31-Mar-23 50,27,567 5.03 48.49% VongPower Not Applicable 30.73 1.52 1.62
2 Lanka Ashok Leyland PLC 31-Mar-23 10,08,332 0.57 27.85% VongPower Not Applicable 96.73 0.17 0.42
3 Mangalam Retail Services Limited 31-Mar-23 37,470 0.04 37.48% Vong Power Not Applicable 0.09 ## ##
1 Ashley Alteams India Limited 31-Mar-23 7,59,47,500 75.94 50.00% VongPower Not Applicable 25.29 8.74 8.70
2 Ashok LeylandJohn Deere
ConstruconEquipmentCompany
PrivateLimited # (under liquidaon)
24-Sep-21 17,27,270 1.73 50.00% Vong Power Not Applicable 12.12 - 0.57
# The Companyalong with its subsidiary Gulf AshleyMotor Limitedholds 50% interest.
##amount is below roundingo norms adoptedby the Group.
For Price Waterhouse & Co Chartered Accountants LLP
FirmRegistraon Number : 304026E/E-300009
ExecuveChairman
DIN: 00133410
Shenu Agarwal
ManagingDirectorand
ChiefExecuveOcer
DIN: 03485730
A.J. Shaikh
Partner
Membership Number : 203637
Gopal Mahadevan
Whole-meDirectorand
ChiefFinancial Ocer
DIN: 01746102
N. Ramanathan
Company Secretary
May 23, 2023
Chennai
May 23, 2023
Chennai
NOTE
Registered Office - Ashok Leyland Limited, No. 1, Sardar Patel Road, Guindy, Chennai - 600032,
Tel. - 91 44 2220 6000 | E-mail - r[email protected] | Website - www.ashokleyland.com
CIN: L34101TN1948PLC000105
