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With the commercial vehicle (CV) industry continuing to see pressure, Ashok Leyland has called a postal ballot of shareholders to approve a cut in pay of 21 per cent for Managing Director Vinod K Dasari.
Notice was given on Monday for approving a remuneration of Rs 2.20 crore for 2013-14 against Rs 2.79 crore in 2012-13 and Rs 2.48 crore in 2011-12. Votes may be sent till March 17. Leyland, the country’s second largest CV manufacturer, had last month said it would bring down the number of working days in a week from six to five, to reduce personnel cost by 15 per cent.
It sent a communication to shareholders on Monday that, consequent to the economic downturn and sluggish market, it was experiencing a demand slowdown for its products, resulting in a net loss for the April-December 2013 period. With the projected demand for the remaining period of 2013-14, it does not expect to report profits. Hence, it said, it expected either inadequate profit or a business loss for 2013-14.
The decision to pay minimum remuneration to Dasari in the form of salary, allowances, perquisites and other benefits was passed by the nomination and compensation committee and the board of directors on January 20 and 21, respectively.
Leyland reported a loss of Rs 167 crore during the quarter ended December 31, as compared to a profit of Rs 74 crore in the same period last year. This was despite raising of Rs 134 crore by diluting stake in non-core businesses and sale of some assets.
The company attributed the reasons to a general slowing of the economy, affecting industry volumes, with a fall in demand. It had, it said, taken various remedial steps.
