Ashok Leyland Ltd. — Annual Report 2020

Jun 25, 2020

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June 25, 2020

National Stock Exchange of India Limited Exchange Plaza C-1, Block G, Bandra Kurla Complex Bandra (E), Mumbai - 400 051

Scrip Code: ASHOKLEY Through: NEAPS

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001 Stock Symbol: 500477 Through: BSE Listing Centre

Dear Sirs,

Subject: Financial results for the quarter and year ended March 31, 2020

The Board of Directors of the Company, at its meeting held today, have inter alia approved and taken on record the audited standalone financial results of the Company and consolidated financial results of the Company and its subsidiaries for the quarter and financial year ended March 31, 2020. Pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing the statement showing the audited standalone and consolidated financial results for the quarter and year ended March 31, 2020 along with the Statutory Auditors’ Report.

A copy of the communication being released to the Press in this regard is also attached.

We hereby declare that the statutory auditors of the Company M/s. Price Waterhouse & Co, Chartered Accountants LLP have in their report issued an unmodified opinion on the audited standalone and consolidated financial results for the year ended March 31, 2020.

The meeting commenced at 4.30 p.m. and concluded at 8.20 p.m.

A copy of the above will be made available on the website of the Company: www.ashokleyland.com.

Yours faithfully, for ASHOK LEYLAND LIMITED

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N Ramanathan Company Secretary

Encl : a/a

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ASHOK LEYLAND LIMITED
Regd. Office :1 Sardar Patel Road, Guindy, Chennai -600 032 ; CIN : L34101TN1948PLC000105 ; Email id: secretarial@ashokleyland.com
STATEMENT OF STANDALONE AND CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2020
Rs. Crores
S. No Particulars Three Months Ended Year Ended
STANDALONE
31.03.2020 31.03.2019
31.12.2019 31.03.2020 31.03.2019
(Refer Note 13) (Refer Note 13)
Audited Unaudited Audited Audited
Income
1 a. Income from operations 3,814.16 3,973.31 8,722.59 17,267.22 28,614.03
b. Other operating Income (Refer Note 3) 24.30 42.34 123.34 200.25 440.92
Revenue from operations (a+b) 3,838.46 4,015.65 8,845.93 17,467.47 29,054.95
2 Other income 34.44 22.33 9.08 123.34 109.94
3 Total Income (1+2) 3,872.90 4,037.98 8,855.01 17,590.81 29,164.89
4 Expenses
a. Cost of materials and services consumed 1,955.25 1,760.26 5,158.80 10,384.46 20,872.27
b. Purchases of stock-in-trade 200.30 227.38 191.16 793.22 766.10
c. Changes in inventories of finished goods, stock-in-trade and work-in-progress 573.41 965.59 1,079.25 1,191.47 (958.80)
d. Employee benefits expense 409.72 272.79 573.48 1,615.06 2,098.77
e. Finance costs 33.10 33.68 16.61 109.45 70.38
f. Depreciation and amortisation expense 187.66 157.46 159.76 669.80 621.01
g. Other expenses 516.83 564.48 857.80 2,309.61 3,140.87
Total Expenses 3,876.27 3,981.64 8,036.86 17,073.07 26,610.60
5 (Loss) / Profit before exchange gain / (loss) on swap contracts and exceptional items and tax (3-4) (3.37) 56.34 818.15 517.74 2,554.29
6 Exchange gain / (loss) on swap contracts (Refer Note 5) - - 0.03 0.01 (2.63)
7 (Loss) / Profit before exceptional items and tax (5+6) (3.37) 56.34 818.18 517.75 2,551.66
8 Exceptional items (Refer Note 6) (68.73) (2.17) (11.71) (155.83) (54.86)
9 (Loss) / Profit before tax (7+8) (72.10) 54.17 806.47 361.92 2,496.80
10 Tax expense (Refer Note 8)
a. Current tax - (credit) / charge (44.45) 41.17 6.74 71.74 378.20
b. Deferred tax - charge / (credit) 29.67 (14.75) 146.74 50.66 135.40
11 (Loss) / Profit for the period / year (9-10) (57.32) 27.75 652.99 239.52 1,983.20
12 Other Comprehensive Income / (Loss)
A (i) Items that will not be reclassified to Profit or Loss (24.09) (2.00) (11.72) (73.29) (65.46)
(ii) Income tax relating to items that will not be reclassified to Profit or Loss 8.42 0.78 4.09 25.61 22.87
B (i) Items that will be reclassified to Profit or Loss (24.77) 3.17 (0.38) (23.20) (6.28)
(ii) Income tax relating to items that will be reclassified to Profit or Loss 8.64 (0.95) 0.13 8.25 2.19
Other Comprehensive Income / (Loss) (31.80) 1.00 (7.88) (62.63) (46.68)
13 Total Comprehensive Income for the period / year (11+12) (89.12) 28.75 645.11 176.89 1,936.52
14 Earnings per equity share
- Basic (0.20) 0.09 2.22 0.82 6.76
- Diluted (0.20) 0.09 2.22 0.82 6.76
15 Paid-up equity share capital (Face value per share of Re.1/- each) 293.55 293.55 293.55 293.55 293.55
16 Other equity 6,970.44 8,038.88
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Standalone Statement of Assets and Liabilities
Rs. Crores
As at As at
March 31, 2020 March 31, 2019
Particulars
STANDALONE
Audited
A ASSETS
1 Non-current assets
(a) Property, plant and equipment 5,036.66 4,805.98
(b) Capital work-in-progress 420.97 274.64
(c) Right-of-use asset 406.46 -
(d) Goodwill 449.90 449.90
(e) Other intangible assets 910.55 358.63
(f) Intangible assets under development 173.17 382.98
(g) Financial assets
(i) Investments 2,719.63 2,636.50
(ii) Trade receivables 0.58 0.14
(iii) Loans 32.42 31.71
(iv) Other financial assets 69.37 41.44
(h) Income tax assets (net) 124.71 102.34
(i) Other non-current assets 621.70 953.80
10,966.12 10,038.06
2 Current assets
(a) Inventories 1,238.00 2,684.67
(b) Financial assets
(i) Trade receivables 1,179.82 2,505.53
(ii) Cash and cash equivalents 1,279.04 1,364.98
(iii) Bank balances other than (ii) above 43.43 8.61
(iv) Loans 23.00 22.46
(v) Other financial assets 903.17 465.06
(c) Contract Assets 8.53 11.04
(d) Other current assets 748.50 1,123.99
5,423.49 8,186.34
TOTAL ASSETS 16,389.61 18,224.40
B EQUITY AND LIABILITIES
1 Equity
(a) Equity share capital 293.55 293.55
(b) Other equity 6,970.44 8,038.88
Total Equity 7,263.99 8,332.43
Liabilities
2 Non-Current liabilities
(a) Financial liabilities
(i) Borrowings 1,353.86 298.40
(ii) Lease Liabilities 27.55 -
(iii) Other financial liabilities 49.92 34.59
(b) Provisions 180.69 249.63
(c) Deferred tax liabilities (net) 264.82 249.73
(d) Contract liabilities 249.85 269.02
(e) Other non-current liabilities - 1.64
2,126.69 1,103.01
3 Current liabilities
(a) Financial liabilities
(i) Borrowings 1,710.97 100.00
(ii) Trade payables
a) Total outstanding dues of micro enterprises and small enterprises 12.68 12.94
b) Total outstanding dues other than micro enterprises and small enterprises 2,611.23 5,005.99
(iii) Lease liabilities 12.92 -
(iv) Other financial liabilities 1,340.79 1,600.34
(b) Contract liabilities 611.23 790.23
(c) Other current liabilities 74.26 476.69
(d) Provisions 624.85 802.77
6,998.93 8,788.96
TOTAL EQUITY AND LIABILITIES 16,389.61 18,224.40
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Standalone Statement of Cash flows
Rs. Crores
For the year ended
Particulars March 31, 2020 March 31, 2019
STANDALONE
Audited
Cash flow from operating activities
Profit for the year 239.52 1,983.20
Adjustments for :
Income tax expense 122.40 513.60
Prepaid lease rentals - 3.02
Depreciation, amortisation and impairment 648.53 621.01
Amortisation - Right-of-use asset 21.27 -
Share based payments costs 16.06 2.43
Impairment loss allowance, write off on trade receivable / other receivables (net) 39.71 (25.28)
Impairment loss/(reversal) in the value of investments (including impact of capital reduction) 2.13 3.77
Impairment loss in the value of equity investment (net of reversal of provision for obligation) 108.11 35.15
Foreign exchange loss 46.51 17.11
Exchange (gain) / loss on swap contracts (41.06) 2.63
Loss / (Profit) on sale of Property,plant and equipment (PPE) and intangible assets - net (4.18) 12.49
Profit on sale of investments - net (16.81) (46.89)
Net (gain) / loss arising on financial asset mandatorily measured at FVTPL (4.25) 10.45
Finance costs 109.45 70.38
Interest income (56.72) (39.76)
Dividend income (18.90) (1.54)
(Gain) on preclosure of leases (0.99) -
Operating profit before working capital changes 1,210.78 3,161.77
Adjustments for changes in :
Trade receivables 1,314.17 (1,572.34)
Inventories 1,446.67 (926.34)
Non-current and current financial assets 27.26 (55.70)
Contract assets 2.51 (11.04)
Other non-current and current assets 368.29 (766.59)
Redemption/ (Payment) to escrow accounts 75.73 (71.23)
Related party advances/receivables (net) 0.72 (1.95)
Trade payables (2,402.14) 129.13
Non-current and current financial liabilities (325.67) 255.20
Contract liabilities (198.17) 1,059.25
Other non-current and current liabilities (417.96) (1,009.55)
Other non-current and current provisions (67.02) 7.37
Cash generated from operations 1,035.17 197.98
Income tax paid (net of refund) (94.11) (560.33)
Net cash from / (used in) operating activities [A] 941.06 (362.35)
Cash flow from investing activities
Purchase of PPE and intangible assets (1,312.54) (763.12)
Proceeds on sale of PPE and intangible assets 20.27 31.65
Purchase of non-current investments (447.59) (202.63)
Sale proceeds of non-current investments / Capital reduction 0.38 3.40
(Purchase) / sale of proceeds from current investments (net) 16.81 3,202.05
Inter corporate deposits - given (950.00) (735.00)
Inter corporate deposits - repaid 450.00 735.00
Interest received 26.32 38.60
Dividend received 18.90 1.54
Net cash (used in) / from investing activities [B] (2,177.45) 2,311.49
Cash flow from financing activities
Proceeds from issue of equity shares (including securities premium) - 8.64
Proceeds from non-current borrowings 1,215.31 -
Repayments of non-current borrowings (239.66) (631.61)
Receipts / (Payments) relating to swap contracts on non-current borrowings 2.49 (30.45)
Proceeds from current borrowings 12,614.18 10,951.00
Repayments of current borrowings (11,004.92) (10,951.00)
Payments of Lease liability (21.87) -
Interest paid (146.31) (102.90)
Dividend paid and tax thereon (1,270.24) (859.84)
Net cash from / (used in) financing activities [C] 1,148.98 (1,616.16)
Net cash (Outflow) / Inflow [A+B+C] (87.41) 332.98
Opening cash and cash equivalents 1,364.98 1,031.47
Exchange fluctuation on foreign currency bank balances 1.47 0.53
Closing cash and cash equivalents 1,279.04 1,364.98
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ASHOK LEYLAND LIMITED
Regd. Office :1 Sardar Patel Road, Guindy, Chennai -600 032 ; CIN : L34101TN1948PLC000105 ; Email id: secretarial@ashokleyland.com
STATEMENT OF STANDALONE AND CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2020
Rs. Crores
S. No Particulars Three Months Ended Year Ended
Consolidated
31.03.2020
31.12.2019 31.03.2019 31.03.2020 31.03.2019
(Refer Note 13)
Audited Unaudited Unaudited Audited Audited
Income
1 Income from Operations
a. Income from operations 5,062.15 5,148.15 9,749.82 21,748.12 32,753.24
b. Other operating income (Refer Note 3) 25.89 40.69 124.22 203.15 443.60
Revenue from operations (a+b) 5,088.04 5,188.84 9,874.04 21,951.27 33,196.84
2 Other Income 39.07 19.69 26.06 107.83 128.06
3 Total Income (1+2) 5,127.11 5,208.53 9,900.10 22,059.10 33,324.90
4 Expenses
a. Cost of materials and services consumed 2,115.40 1,977.66 5,346.34 11,164.38 21,680.55
b. Purchases of stock-in-trade 216.86 256.90 213.95 874.38 837.48
c. Changes in inventories of finished goods, stock-in-trade and work-in-progress 731.16 948.25 1,043.34 1,307.16 (919.42)
d. Employee benefits expense 569.00 414.92 708.18 2,190.27 2,639.85
e. Finance costs 445.31 468.05 384.40 1,801.65 1,502.24
f. Depreciation and amortisation expense 208.64 180.42 174.63 749.99 675.56
g. Other expenses 750.81 839.34 1,070.23 3,181.73 4,048.38
Total Expenses 5,037.18 5,085.54 8,941.07 21,269.56 30,464.64
Profit before exchange gain / (loss) on swap contracts, share of profit of associates and joint
5 (3-4) 89.93 122.99 959.03 789.54 2,860.26
ventures and exceptional items and tax
6 Exchange gain / (loss) on swap contracts (Refer Note 5) - - 0.03 0.01 (2.63)
7 Profit before share of profit of associates and joint ventures, exceptional items and tax (5+6) 89.93 122.99 959.06 789.55 2,857.63
8 Share of profit of associates and joint ventures (net) 1.09 0.47 4.14 2.89 11.28
9 Profit before exceptional items and tax (7+8) 91.02 123.46 963.20 792.44 2,868.91
10 Exceptional items (Refer Note 6) (2.04) (2.17) (4.51) (53.28) 2.75
11 Profit before tax (9+10) 88.98 121.29 958.69 739.16 2,871.66
12 Tax expense (Refer Note 8)
a) Current tax (credit) / charge (2.86) 65.89 28.98 194.68 525.67
b) Deferred tax - charge / (credit) 34.06 (1.71) 178.00 84.68 151.39
13 Profit for the period / year (11-12) 57.78 57.11 751.71 459.80 2,194.60
14 Other Comprehensive Income
A (i) Items that will not be reclassified to Profit or Loss (24.57) (2.12) (10.26) (74.25) (63.74)
(ii) Income tax relating to items that will not be reclassified to Profit or Loss 7.62 0.81 3.65 24.94 22.31
B (i) Items that will be reclassified to Profit or Loss 107.81 38.12 202.94 247.83 343.95
(ii) Income tax relating to items that will be reclassified to Profit or Loss 20.09 (12.80) (71.14) (25.01) (119.01)
Other Comprehensive Income 110.95 24.01 125.19 173.51 183.51
15 Total Comprehensive Income for the period / year (13+14) 168.73 81.12 876.90 633.31 2,378.11
16 Profit for the period attributable to
- Owners of the Company 18.07 26.79 712.53 336.67 2,078.70
- Non-controlling interest 39.71 30.32 39.18 123.13 115.90
17 Other Comprehensive Income / (Loss) attributable to
- Owners of the Company 58.09 13.46 74.71 85.70 97.07
- Non-controlling interest 52.86 10.55 50.48 87.81 86.44
18 Total Comprehensive Income for the period / year attributable to
- Owners of the Company 76.16 40.25 787.24 422.37 2,175.77
- Non-controlling interest 92.57 40.87 89.66 210.94 202.34
19 Earnings per equity share
- Basic 0.06 0.09 2.43 1.15 7.08
- Diluted 0.06 0.09 2.43 1.15 7.08
20 Paid-up equity share capital (Face value per share of Re.1/- each) 293.55 293.55 293.55 293.55 293.55
21 Other equity 7,495.26 8,452.02
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Consolidated Statement of Assets and Liabilities
Rs. Crores
As at As at
Particulars March 31, 2020 March 31, 2019
CONSOLIDATED
Audited Audited
A ASSETS
1 Non-current assets
(a) Property, plant and equipment 5,314.21 5,070.85
(b) Capital work-in-progress 442.12 294.63
(c) Right-of-use asset 521.45 -
(d) Goodwill (on consolidation) 1,115.56 1,115.56
(e) Other Intangible assets 1,079.71 509.06
(f) Intangible assets under development 131.77 382.98
(g) Investments - Accounted for using equity method 105.01 102.11
(h) Financial assets
(i) Investments 672.09 757.01
(ii) Trade receivables 0.58 0.14
(iii) Loans 12,022.12 12,922.32
(iv) Other financial assets 567.28 321.30
(i) Deferred tax assets (net) 7.71 10.30
(j) Income tax assets (net) 213.24 188.44
(k) Other non-current assets 624.52 959.73
22,817.37 22,634.43
2 Current assets
(a) Inventories 1,536.39 3,063.43
(b) Financial assets
(i) Investments 183.24 632.76
(ii) Trade receivables 1,496.16 2,717.18
(iii) Cash and cash equivalents 2,188.24 1,767.39
(iv) Bank balances other than (iii) above 47.06 9.90
(v) Loans 7,888.95 6,553.63
(vi) Other financial assets 1,123.33 498.22
(c) Contract Assets 10.71 12.76
(d) Other current assets 835.41 1,232.21
15,309.49 16,487.48
TOTAL ASSETS 38,126.86 39,121.91
B EQUITY AND LIABILITIES
1 Equity
(a) Equity Share capital 293.55 293.55
(b) Other equity 7,495.26 8,452.02
Equity attributable to owners of the Company 7,788.81 8,745.57
2 Non-Controlling Interest 1,107.08 1,075.07
Total Equity 8,895.89 9,820.64
Liabilities
3 Non-Current liabilities
(a) Financial liabilities
(i) Borrowings 13,308.70 13,009.65
(ii) Lease Liabilities 142.75 -
(iii) Other financial liabilities 167.90 122.87
(b) Provisions 228.54 316.87
(c) Deferred tax liabilities (net) 338.57 257.76
(d) Contract liabilities 249.85 269.02
(e) Other non-current liabilities - 9.24
14,436.31 13,985.41
4 Current liabilities
(a) Financial liabilities
(i) Borrowings 2,842.68 2,137.75
(ii) Trade payables
a. Total outstanding dues of micro enterprises and small enterprises 13.07 13.79
b. Total outstanding dues other than micro enterprises and small enterprises 2,821.53 5,165.23
(iii) Lease Liabilities 36.77 -
(iv) Other financial liabilities 7,674.26 6,012.47
(b) Contract liabilities 597.52 814.80
(c) Other current liabilities 92.84 562.05
(d) Provisions 715.98 609.50
(e) Current tax liabilities (net) 0.01 0.27
14,794.66 15,315.86
TOTAL EQUITY AND LIABILITIES 38,126.86 39,121.91
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Consolidated Statement of Cash Flows
Rs. Crores
For the year ended
March 31, 2020 March 31, 2019
Particulars
Consolidated
Audited Audited
Cash flow from operating activities
Profit for the year 459.80 2,194.60
Adjustments for :
Income tax expense 279.36 677.06
Share of (profit) of associates and joint ventures (net) (2.89) (11.28)
Depreciation, amortisation and impairment expense 710.82 675.56
Amortisation - right-of-use asset 39.17 -
Prepaid lease rentals - 3.02
Share based payment cost 16.06 3.48
Obligation relating to discontinued products of LCV division 7.69 17.09
Impairment loss allowance / write off on trade receivable / other receivables / loans (net) 233.27 337.19
Net (gain) /loss arising on financial asset mandatorily measured at FVTPL (1.49) (1.91)
Foreign exchange loss 44.83 15.96
Exchange (gain) / loss on swap contracts (41.06) 2.63
Profit on sale of Property,plant and equipment (PPE) and intangible assets - net (4.90) (4.62)
Loss on sale of immovable property - Exceptional item - 15.94
Profit on sale of investments - net (16.81) (46.89)
Impairment reversal in the value of investments (net) (including impact of capital reduction) - (34.79)
(Gain) on disposal of interest in a former associate - (0.99)
(Gain) on preclosure of leases (0.99) -
Finance costs 136.19 100.18
Interest income (58.44) (41.69)
Operating profit before working capital changes 1,800.61 3,900.54
Adjustments for changes in :
Trade receivables 1,201.91 (1,554.67)
Inventories 1,527.04 (855.75)
Non-current and current financial assets (781.64) (4,531.55)
Other non-current and current assets 391.57 (522.18)
Redemption / (payment) to escrow account 75.73 (71.23)
Contract Assets 2.05 (12.76)
Related party advances / receivables (net) 0.71 1.93
Trade payables (2,348.53) 119.06
Non-current and current financial liabilities (450.06) 474.23
Other non-current and current liabilities (501.42) (985.90)
Non-current and current contract liabilities (236.45) 1,083.82
Other non-current and current provisions (77.25) (38.24)
Cash generated from operations 604.27 (2,992.70)
Income tax paid (net of refund) (221.09) (752.79)
Net cash (used in)/from operating activities [A] 383.18 (3,745.49)
Cash flow from investing activities
Purchase of PPE and intangible assets (1,349.08) (1,126.35)
Proceeds on sale of PPE and intangible assets 25.65 30.96
Payments to non controlling interest in relation to a subsidiary - (30.00)
Purchase of stake in a subsidiary (300.00) (1.04)
Proceeds from sale of non-current investments (including escrow bank account) 106.49 148.17
Purchase of non-current investments (22.80) (1.11)
Proceeds from sale of current investments (net) 466.33 2,830.27
Movement in other bank deposits (2.32) 0.36
Inter corporate deposits given (950.00) (780.00)
Inter corporate deposits repaid 495.00 780.00
Interest received 28.06 40.60
Net cash from/(used in) investing activities [B] (1,502.67) 1,891.86
Cash flow from financing activities
Proceeds from issue of equity shares (including securities premium) - 8.64
Issues of shares to Non-controlling interest shareholders 0.44 76.45
Proceeds from non-current borrowings 3,316.64 3,752.22
Repayments of non-current borrowings (1,014.18) (631.61)
Proceeds from current borrowings 17,493.64 11,337.98
Repayments of current borrowings (16,791.66) (11,121.68)
Payment of lease liability (35.69) -
Payments relating to swap contracts on non-current borrowings 2.49 (30.45)
Interest paid (157.10) (133.96)
Dividend paid and tax thereon (1,275.73) (859.84)
Net cash from financing activities [C] 1,538.85 2,397.75
Net cash inflow [A+B+C] 419.36 544.12
Opening cash and cash equivalents 1,767.39 1,218.04
Pursuant to business combination - 0.37
Exchange fluctuation on foreign currency bank balances 1.49 4.86
Closing cash and cash equivalents 2,188.24 1,767.39
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Notes on standalone and consolidated financial results:

(1) The above standalone and consolidated results of the Company were reviewed by the Audit Committee at its meeting held on June 24, 2020 and then approved by the Board of Directors at its meeting held on June 25, 2020.

(2) The Board of Directors have approved an interim dividend of Rs.0.50 per equity share of Re.1 for the year ended March 31, 2020 at their meeting held on March 12, 2020.

(3) Other operating Income includes, "Grant Income" and "Export Incentives" aggregating to Rs. 112.10 crores for the year ended March, 31 2020 [quarter ended March 31, 2020 Rs. 6.19 crores, quarter ended December 31, 2019 Rs.17.41 crores, quarter ended March 31, 2019 Rs. 94.73 crores and year ended March 31, 2019 Rs. 311.94 crores];

(4) The Company has elected the option under Ind AS 101 ‘First-time Adoption of Indian Accounting Standards’ and has continued the policy adopted for accounting of exchange differences arising from translation of long term foreign currency monetary items recognised in the financial statements upto March 31, 2016. Accordingly, exchange difference on translation or settlement of long term foreign currency monetary items at rates different from those at which they were initially recorded or as at April 1, 2007, in so far as it relates to acquisition of depreciable assets are adjusted to the cost of the assets. In other cases, such exchange differences, arising effective April 1, 2011, are accumulated in “Foreign currency monetary item translation difference account” and amortized by recognition as income or expense in each year over the balance term till settlement occurs but not beyond March 31, 2020.

Accordingly,

a) Foreign exchange loss / (gain) relating to acquisition of depreciable assets, capitalised during the year ended March 31, 2020 aggregated Rs.6.04 crores [quarter ended March 31, 2020 Rs.2.85 crores, quarter ended December 31, 2019 Rs.0.34 crores, quarter ended March 31, 2019 Rs.3.25 crores, year ended March 31, 2019 Rs.22.66 crores];

b) Amortised net exchange difference loss / (gain) in respect of long term foreign currency monetary items relating to other than acquisition of depreciable assets, charged to the results during the year ended March 31, 2020 is Rs. 24.75 crores [quarter ended March 31, 2020 Rs. 11.28 crores, quarter ended December 31, 2019 Rs. 3.27 crores, quarter ended March 31, 2019 Rs. 2.30 crores, year ended March 31, 2019 Rs. 13.90 crores]; and

c) The un-amortised net exchange difference in respect of long term monetary items relating to other than acquisition of depreciable assets, is Nil crores as at March 31, 2020 [as at March 31, 2019: loss of Rs 8.16 crores]. These amounts are reflected as part of the “Other equity”.

(5) The Company / Group has currency and interest rate swap contracts (not designated in hedging relationship) in respect of certain foreign currency long-term borrowings. Net exchange differences on settlement and period end fair valuation (mark to market) have been charged / credited to profit and loss for the period and disclosed separately for better comparability and understanding of the results.

(6) Exceptional items consist of:

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Rs. Crores
Three Months Ended Year Ended
Description Standalone
31.03.2020 31.12.2019 31.03.2019 31.03.2020 31.03.2019
Audited Unaudited Audited Audited
Impairment reversal / (loss) in the value of equity instruments in subsidiaries and joint ventures (net) (including impact of
(1.27) - (6.21) (2.13) (3.77)
capital reduction)
Impairment loss in the value of equity investment (net of reversal of provision for obligation) (65.42) - - (100.42) (18.06)
(Loss) on sale of immovable properties - - - - (15.94)
Obligation relating to discontinued products of LCV division (1.67) (1.69) (5.50) (7.69) (17.09)
Voluntary Retirement Scheme (0.37) (0.48) - (45.59) -
Total (68.73) (2.17) (11.71) (155.83) (54.86)
Rs. Crores
Three Months Ended Year Ended
Description Consolidated
31.03.2020 31.12.2019 31.03.2019 31.03.2020 31.03.2019
Audited Unaudited Unaudited Audited
Impairment reversal / (loss) in the value of equity instruments in subsidiaries and joint ventures (net) (including impact of - - - - 34.79
capital reduction)
Obligation relating to discontinued products of LCV division (1.67) (1.69) (5.50) (7.69) (17.09)
Voluntary Retirement Scheme (0.37) (0.48) - (45.59) -
Gain on disposal of interest in former associate - - 0.99 - 0.99
(Loss) on sale of immovable properties - - - - (15.94)
Total (2.04) (2.17) (4.51) (53.28) 2.75
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(7) Segment Information:

(a) Standalone:

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 reporting system. The Board of directors of the Company, which has been identified as being the chief operating 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 'Operating Segments'.

(b) Consolidated:

The Group's reportable segment has been identified as business segment based on nature of products, risks, returns and the internal business reporting system as per Ind AS 108. The Group is engaged in business of Commercial Vehicle and Financial Services mainly relating to vehicle and housing financing.

i. Segment Revenue

Less: Intersegmental Revenue Revenue from Operations Description Commercial Vehicle Financial Services Gross Revenue	Rs. Crores 31.03.2020 31.12.2019 31.03.2019 31.03.2020 31.03.2019 Audited Unaudited Unaudited 4,192.09 4,414.88 9,146.20 18,814.93 30,493.81 895.96 773.96 732.78 3,136.41 2,712.58 5,088.05 5,188.84 9,878.98 21,951.34 33,206.39 0.01 - 4.94 0.07 9.55 5,088.04 5,188.84 9,874.04 21,951.27 33,196.84 5,088.04 5,188.84 #REF! #REF! Year Ended Three Months Ended Audited

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ii. Segment Results

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Rs. Crores
Three Months Ended Year Ended
Description 31.03.2020 31.12.2019 31.03.2019 31.03.2020 31.03.2019
Audited Unaudited Unaudited Audited
Commercial Vehicle (63.14) 28.92 800.73 337.83 2,373.44
Financial Services (after deducting interest expense on loan financing) 151.85 115.74 156.24 480.08 456.31
Total Segment Profit before Interest and Tax 88.71 144.66 956.97 817.91 2,829.75
Interest Expense (37.85) (41.36) (23.97) (136.19) (100.18)
Other Income 39.07 19.69 26.06 107.83 128.06
Share of profit/ (loss) of associates and joint ventures (net) 1.09 0.47 4.14 2.89 11.28
Exceptional items (2.04) (2.17) (4.51) (53.28) 2.75
Profit before tax 88.98 121.29 958.69 739.16 2,871.66
Less: Tax 31.20 64.18 206.98 279.36 677.06
Profit after tax (including share of profit/ (loss) of associates and joint ventures) 57.78 57.11 751.71 459.80 2,194.60
344.91 274.96 550.35 69.95
iii. Segment Assets
Rs. Crores
As at
Description 31.03.2020 31.12.2019 31.03.2019
Audited Unaudited Audited
Commercial Vehicle 15,916.72 15,845.38 17,693.37
Financial Services 22,210.14 21,749.32 21,428.54
Total Segment Assets 38,126.86 37,594.70 39,121.91
9,188.63
iv. Segment Liabilities
Rs. Crores
As at
Description 31.03.2020 31.12.2019 31.03.2019
Audited Unaudited Audited
Commercial Vehicle 10,290.79 9,648.76 10,637.62
Financial Services 18,940.18 18,757.31 18,663.65
Total Segment Liabilities 29,230.97 28,406.07 29,301.27
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(8) Current tax for the reported periods is based on Minimum Alternate Tax (MAT), where applicable, with appropriate tax credit entitlement thereof reflected in deferred tax.

(9) During the year ended March 31, 2020, the Company allotted Nil (March 31, 2019: 8,423,175) equity shares pursuant to the exercise of options under Employee Stock Option Scheme.

(10) The Ministry of Corporate Affairs (MCA), on March 30, 2019, notified Ind AS 116 "Leases" as part of the Companies (Indian Accounting Standards) Amendment Rules, 2018. The new standard is effective for accounting periods beginning on or after April 1, 2019. The Company/Group has applied modified retrospective approach in adopting the new standard and accordingly, the results for the quarter and year ended March 31, 2019 is not comparable with other periods reported. The adoption of the standard did not have any material impact on the financial results of the Company/Group.

(11) With reference to the SEBI circular November 26, 2018, in respect of fund raising by issuance of debt securities by large corporates (LC) and disclosures and compliances thereof by such LC, the Company is coming under the LC category as per the framework provided in the circular.

(12) The Group / Company has taken due care in concluding on accounting judgements and estimates; viz., in relation to recoverability of receivables, assessment of impairment of goodwill and intangibles, investments and inventory, based on the internal and external information available to date, while preparing the Group's / Company’s financial results as of and for the year ended March 31, 2020. The Group / Company continues to monitor the impact of Covid-19 on the operations and take appropriate actions as and when required. The actual impact of the global health pandemic may be different from that which has been estimated, as the COVID-19 situation evolves in India and globally.

Relating to financing activities of the Group:

The outbreak of COVID-19 pandemic across the globe and in India has contributed to a significant decline and volatility in the global and Indian financial markets and slowdown in the economic activities. Reserve Bank of India (RBI) has issued guidelines relating to COVID-19 Regulatory Package dated March 27, 2020 and April 17, 2020 and May 22, 2020 and in accordance therewith, the subsidiary has proposed a moratorium of three months on the payment of all principal instalments and/ or interest to all eligible borrowers classified as standard, even if overdue as on February 29, 2020, excluding the collections made/already made in the month of March 2020, as per the RBI guidelines and approval by Board of directors of the subsidiary involved in financing activities.

(13) The statement includes the results for the quarter ended March 31, 2020 and March 31, 2019, being the balancing figure between audited figures in respect of the full financial year, and the published year to date figures of the Company upto the third quarter of the current and previous financial year.

(14) The Company / Group has charged Rs. 33.18 crores (net of tax of Rs. 17.82 crores ) for the year and Rs. 14.96 crores (net of tax of Rs. 8.04 crores) for the quarter ended March 31, 2020, being the remeasurement of the fair value of plan assets, held by the Company's / Group’s administered provident fund trusts.

(15) The figures for the previous period have been reclassified/ regrouped wherever necessary.

Place : New Delhi Date : June 25, 2020

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Vipin Sondhi Chief Executive Officer and Managing Director

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INDEPENDENT AUDITORS’ REPORT

To the Board of Directors of Ashok Leyland Limited

Report on the Audit of Standalone Financial Results

Opinion

1. We have audited the standalone annual financial results of Ashok Leyland Limited (hereinafter referred to as the ‘Company”) for the year ended March 31, 2020 and the standalone statement of assets and liabilities and the standalone statement of cash flows as at and for the year ended on that date (together referred to as the ‘standalone financial results’), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (‘Listing Regulations’).

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial results:

3. (i) are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and

4. (ii) give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013 (the “Act”) and other accounting principles generally accepted in India, of net profit and other comprehensive l0ss and other financial information of the Company for the year ended March 31, 2020 and the standalone statement of assets and liabilities and the standalone statement of cash flows as at and for the year ended on that date.

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the ‘Auditors’ Responsibilities for the Audit of the Standalone Financial Results’ section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

1. We draw your attention to Note 12 of the standalone financial results which explains the uncertainties and the management’s assessment of the financial impact due to lock-downs and other restrictions and conditions related to the COVID-19 pandemic situation, for which a definitive assessment of the impact in the subsequent period is highly dependent upon circumstances as they evolve.

Our opinion is not modified in respect of this matter.

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Price Waterhouse & Co Chartered Accountants, 8[th] Floor, Prestige Palladium Bayan, 129-140, Greams Road, Chennai – 600 006, India T: +91 (44) 4228 5000, F: +91 (44) 4228 5100

Registered office and Head Office: Plot No. Y-14, Block-EP, Sector-V, Salt Lake Electronic Complex, Bidhan Nagar, Kolkata - 700 091

Price Waterhouse & Co. (a Partnership Firm) Converted into Price Waterhouse & Co Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPINAAC-4362) with effect from July 7, 2014. Post its conversion to Price Waterhouse & Co Chartered Accountants LLP, its ICAI registration number is 304026E/E-300009 (ICAI registration number before conversion was 304026E)

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Ashok Leyland Limited Report on the Standalone Financial Results Page 2 of 3

Board of Directors’ Responsibilities for the Standalone Financial Results

1. These Standalone financial results have been prepared on the basis of the standalone annual Ind AS financial statements. The Company’s Board of Directors are responsible for the preparation and presentation of these standalone financial results that give a true and fair view of the net profit and other comprehensive loss and other financial information of the Company and the standalone statement of assets and liabilities and the standalone statement of cash flows in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Board of Directors of the Company are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial 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 preparation of the standalone financial results by the Directors of the Company, as aforesaid.

2. In preparing the standalone financial results, the Board of Directors of the Company are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

3. The Board of Directors of the Company are responsible for overseeing the financial reporting process of the Company.

Auditors’ Responsibilities for the Audit of the Standalone Financial Results

1. Our objectives are to obtain reasonable assurance about whether the standalone financial results 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 in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial results.

2. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

3. Identify and assess the risks of material misstatement of the standalone financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

4. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls. (Refer paragraph 12 below)

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Ashok Leyland Limited Report on the Standalone Financial Results Page 3 of 3

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the standalone financial results 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 conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial results, including the disclosures, and whether the standalone financial results represent the underlying transactions and events in a manner that achieves fair presentation.

• We communicate with those charged with governance of the Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

1. The Financial Results include the results for the quarter ended March 31, 2020 being the balancing figures between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year, which are neither subject to limited review nor audited by us.

2. The standalone annual financial results dealt with by this report has been prepared for the express purpose of filing with National Stock Exchange of India Limited and BSE Limited. These results are based on and should be read with the audited standalone Ind AS financial statements of the Company for the year ended March 31, 2020 on which we issued an unmodified audit opinion vide our report dated June 25, 2020.

For Price Waterhouse & Co Chartered Accountants LLP

Firm Registration Number: 304026E/E-300009 Chartered Accountants

A.J.Shaikh Partner Membership Number: 203637

UDIN: 20203637AAAACD6346 Bangalore June 25, 2020

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INDEPENDENT AUDITORS’ REPORT

To the Board of Directors of Ashok Leyland Limited

Report on the Audit of Consolidated Financial Results

Opinion

1. We have audited the consolidated annual financial results of Ashok Leyland Limited (hereinafter referred to as the ‘Holding Company’) and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), its associates and joint ventures (refer paragraph 2 below) for the year ended March 31, 2020 and the consolidated statement of assets and liabilities and the consolidated statement of cash flows as at and for the year ended on that date (together referred to as the ‘consolidated financial results’), attached herewith, being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (‘Listing Regulations’).

2. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on separate audited financial statements/financial information of the subsidiaries, associates and joint ventures, the aforesaid consolidated financial results:

3. (a) include the annual financial results of the following entities:

Subsidiaries:

• i. Hinduja Leyland Finance Limited and its subsidiary and associate ii. Gulf Ashley Motor Limited iii. Global TVS Bus Body Builders Limited iv. HLF Services Limited

• v. Optare Plc and its subsidiaries

• vi. Ashok Leyland (Chile) SA vii. Ashok Leyland (Nigeria) Limited viii. Albonair (India) Private Limited

• ix. Albonair GmbH and its subsidiary

• x. Ashok Leyland (UAE) LLC and its subsidiaries xi. Ashley Aviation Limited

Joint Ventures:

• i. Hinduja Tech Limited and its subsidiaries ii. Ashok Leyland John Deere Construction Equipment Company Private Limited iii. Ashley Alteams India Limited

Associates:

• i. Ashok Leyland Defence Systems Limited ii. Mangalam Retail Services Limited iii. Lanka Ashok Leyland Plc

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Price Waterhouse & Co Chartered Accountants LLP, 8[th] Floor, Prestige Palladium Bayan, 129-140, Greams Road, Chennai – 600 006, India T: +91 (44) 4228 5000, F: +91 (44) 4228 5100

Registered office and Head Office: Plot No. Y-14, Block-EP, Sector-V, Salt Lake Electronic Complex, Bidhan Nagar, Kolkata - 700 091

Price Waterhouse & Co. (a Partnership Firm) Converted into Price Waterhouse & Co Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPINAAC-4362) with effect from July 7, 2014. Post its conversion to Price Waterhouse & Co Chartered Accountants LLP, its ICAI registration number is 304026E/E-300009 (ICAI registration number before conversion was 304026E)

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Ashok Leyland Limited Report on the Consolidated Financial Results Page 2 of 6

• (b) are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and

• (c) give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013 (the “Act”) and other accounting principles generally accepted in India, of net profit and other comprehensive income and other financial information of the Group, its associates and joint ventures for the year ended March 31, 2020 and the consolidated statement of assets and liabilities and the consolidated statement of cash flows as at and for the year ended on that date.

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the ‘Auditors’ Responsibilities for the Audit of the Consolidated Financial Results’ section of our report. We are independent of the Group, its associates and joint ventures in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in “Other Matters” paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

1. We draw your attention to Note 12 of the consolidated financial results which explains the uncertainties and the management’s assessment of the financial impact due to lock-downs and other restrictions and conditions related to the COVID-19 pandemic situation, for which a definitive assessment of the impact in the subsequent period is highly dependent upon circumstances as they evolve.

Our opinion is not modified in respect of this matter.

1. The following paragraph were included in the audit report dated June 20, 2020, containing an unmodified audit opinion on the consolidated financial information of Hinduja Leyland Finance Limited, a subsidiary of the Holding Company issued by an independent firm of Chartered Accountants reproduced by us as under:

“We draw attention to Note 3.6 to the consolidated financial statements, which describes that the potential impact of the COVID-19 Pandemic on the results of the Group, and consequently the Group’s results are dependent on future developments, which are highly uncertain.

Our report is not modified in respect of this matter.”

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Ashok Leyland Limited Report on the Consolidated Financial Results Page 3 of 6

Board of Directors’ Responsibilities for the Consolidated Financial Results

1. These Consolidated financial results have been prepared on the basis of the consolidated annual financial statements. The Holding Company’s Board of Directors are responsible for the preparation and presentation of these consolidated financial results that give a true and fair view of the net profit and other comprehensive income and other financial information of the Group including its associates and joint ventures and the consolidated statement of assets and liabilities and the consolidated statement of cash flows in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The respective Board of Directors of the companies included in the Group and of its associates and joint ventures are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and its associates and joint ventures and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial 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 preparation of the consolidated financial results by the Directors of the Holding Company, as aforesaid.

2. In preparing the consolidated financial results, the respective Board of Directors of the companies included in the Group and of its associates and joint ventures are responsible for assessing the ability of the Group and its associates and joint ventures to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Group and its associates and joint ventures or to cease operations, or has no realistic alternative but to do so.

3. The respective Board of Directors of the companies included in the Group and of its associates and joint ventures are responsible for overseeing the financial reporting process of the Group and of its associates and joint ventures.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Results

1. Our objectives are to obtain reasonable assurance about whether the consolidated financial results 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 in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial results.

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Ashok Leyland Limited Report on the Consolidated Financial Results Page 4 of 6

1. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

2. Identify and assess the risks of material misstatement of the consolidated financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

3. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls. (Refer paragraph 17 below)

4. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

5. Conclude on the appropriateness of the Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associates and joint ventures to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial results 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 conditions may cause the Group and its associates and joint ventures to cease to continue as a going concern.

6. Evaluate the overall presentation, structure and content of the consolidated financial results, including the disclosures, and whether the consolidated financial results represent the underlying transactions and events in a manner that achieves fair presentation.

7. Obtain sufficient appropriate audit evidence regarding the financial results of the entities within the Group and its associates and joint ventures to express an opinion on the consolidated financial results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial results of which we are the independent auditors. For the other entities included in the consolidated financial results, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Ashok Leyland Limited Report on the Consolidated Financial Results Page 5 of 6

1. We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

2. We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.

Other Matters

1. We did not audit the consolidated financial information of three subsidiaries and financial statements of five subsidiaries included in the consolidated financial results, whose financial information/ financial statement reflect total assets of Rs. 23,368.26 crores and net assets of Rs. 3,356.75 crores as at March 31, 2020, total revenues of Rs. 4,945.06 crores and Rs. 1,433.73 crores, total net profit after tax of Rs. 176.34 crores and Rs. 67.45 crores, and total comprehensive income of Rs. 406.46 crores and Rs. 207.03 crores for the year ended March 31, 2020 and for the period from January 1, 2020 to March 31, 2020 respectively, and cash flows (net) of Rs. 195.42 crores for the year ended March 31, 2020, as considered in the consolidated financial results. The consolidated financial results also include the Group’s share of net profit after tax of Rs. 2.89 crores and Rs. 1.08 crores and total comprehensive income of Rs. 2.04 crores and Rs. 0.20 crores for the year ended March 31, 2020 and for the period from January 1, 2020 to March 31, 2020 respectively, as considered in the consolidated financial results, in respect of three associates and two joint ventures, whose financial statements/ financial information have not been audited by us. These financial statements/financial information have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, associates and joint ventures, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 12 above.

2. The consolidated financial results includes the unaudited consolidated financial information of one subsidiary and unaudited financial information of two subsidiaries, whose financial information reflect total assets of Rs. 288.83 crores and net assets of Rs. 1.63 crores as at March 31, 2020, total revenue of Rs. 356.34 crores and Rs. 78.87 crores, total net loss after tax of Rs. 33.52 crores and Rs. 9.23 crores, and total comprehensive loss of Rs. 31.25 crores and Rs. 9.77 crores for the year ended March 31, 2020 and for the period from January 1, 2020 to March 31, 2020 respectively, and cash flows (net) of Rs. 10.46 crores for the year ended March 31, 2020, as considered in the consolidated financial results. The consolidated financial results also includes the Group’s share of net profit/(loss) after tax of Rs. 0.08 crores and Rs. (0.04) crores and total comprehensive income/(loss) of Rs. 0.08 crores and Rs. (0.04) crores for the year ended March 31, 2020 and for the period from January 1, 2020 to March 31, 2020, respectively, as considered in the consolidated financial results, in respect of one joint venture, whose financial information have not been audited by us. These financial information are unaudited and have been furnished

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Ashok Leyland Limited Report on the Consolidated Financial Results Page 6 of 6

to us by the Management and our opinion on the consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and joint venture, is based solely on such unaudited financial information. In our opinion and according to the information and explanations given to us by the Management, these financial information are not material to the Group.

1. Our opinion on the consolidated financial results is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial information certified by the Board of Directors.

2. The Consolidated financial results include the results for the quarter ended March 31, 2020 being the balancing figures between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year, which are neither subject to limited review nor audited by us.

3. The consolidated annual financial results dealt with by this report have been prepared for the express purpose of filing with National Stock Exchange of India Limited and BSE Limited. These results are based on and should be read with the audited consolidated financial statements of the group, its associates and joint ventures, for the year ended March 31, 2020 on which we have issued an unmodified audit opinion vide our report dated June 25, 2020.

For Price Waterhouse & Co Chartered Accountants LLP Firm Registration Number: 304026E/E-300009 Chartered Accountants

A.J. Shaikh Partner Membership Number: 203637 UDIN: 20203637AAAACE1305

Place: Bangalore Date: June 25, 2020

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Ashok Leyland FY ’20 Revenues at Rs. 17467 Cr; EBITDA at 6.7%

Chennai, June 26, 2020: Ashok Leyland Limited, flagship of the Hinduja Group, reported a revenue of Rs. 17467 Cr for FY ’20 as against Rs. 29055 Cr for the same period last year. The PBT for the year was at Rs. 362 Cr (Rs. 2497 Cr) and PAT was at Rs. 240 Cr (Rs. 1983 Cr). EBITDA for the year was at 6.7%.

For Q4 FY ‘20, revenue was at Rs. 3838 Cr as against Rs. 8846 Cr for the same period last year. The loss before tax for the quarter was at Rs. 72 Cr (profit of Rs. 806 Cr) and loss after tax was at Rs. 57 Cr (profit of Rs. 653 Cr). EBITDA for Q4 was at 4.8% (11.1%).

Mr. Vipin Sondhi, MD & CEO Ashok Leyland Limited said, “This has been a challenging year for the industry, which witnessed a significant decline in volumes (42%). Consequently, Ashok Leyland also saw a reduction in volume. Despite the drop in the volumes, we have been able to achieve an EBITDA of 6.7%. owing to the pan-company efforts to drive profitability.

Despite the challenging times we continued our legacy of introducing new and innovative technology in the industry. The unique Modular Business Platform “AVTR”, gives our customers the flexibility to choose vehicles as per their requirements. This BS VI Platform with the innovative i-Gen6 technology, which is an indigenous solution using mid-NoX technology suited for Indian conditions, will be a game changer in the industry. There has been a very positive customer response for AVTR and the enquiries received for AVTR, as well as our LCV range is a very encouraging sign for the quarters to follow.”

Mr. Gopal Mahadevan, Whole Time Director & Chief Financial Officer, Ashok Leyland Limited said, “We continue our productivity and cost reduction programs started earlier in the year. These initiatives have helped us achieve a sizeable reduction in costs. We are also focusing on improving cash flows and conserving resources for future growth initiatives”.

For further information/media queries, contact: Rajesh Mani, Head - Marketing and Corporate Communications Rajesh.Mani@ashokleyland.com | +91 9500022922

Meenakshi Anand, Divisional Manager - Corporate Communications Meenakshi.anand@ashokleyland.com|+91 7823957700

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