Ashok Leyland seeks shareholders' nod to cut MD's pay by 21 per cent

CHENNAI: Due to the sluggish market and poor financial performance, Hinduja Group flagship company Ashok Leyland has proposed to cut the remuneration of its Managing Director by 21 per cent.

The shareholders' approval has been sought for the proposal to cut the remuneration.

In its communication to shareholders yesterday, Ashok Leyland has sought their approval through postal ballot, "to consider and if thought fit, to give assent or dissent to the resolution that Vinod K Dasari, Managing Director of the company, be paid remuneration by way of salary, prerequisites and allowances upto Rs 2.20 crore for period from April one 2013-to March 31, 2014".

Vinod K Dasari, 48, was appointed as the Managing Director of the company for period of three years from April one, 2011 to March 31, 2014.

A graduate engineer from University of Louisville, USA, Dasari was paid Rs 2.79 crore and Rs 2.48 crore as "annual remuneration" during the period 2012-13 and 2011-12 respectively, it said.

The last date for receipt of postal ballot forms is March 17,2014, it said.

Dasari also serves as Automotive Research Association of India (ARAI) President and Society of Indian Automobile Manufacturers (SIAM) Vice-President.

Ashok Leyland reported a 26 per cent decline in its total sales at 7,847 units in January 2013. It had sold 10,561 units during the same month of previous year.

The company had reported a net loss of 167.20 crore for the third quarter ended December 31 due to decline in sales.

The company had posted a net profit of Rs 74.14 crore during the same period of the previous financial year.

Net sales of the company for the quarter ending December 31 last declined by 18.95 per cent to Rs 1,903.28 crore as compared to Rs 2,348.36 crore registered during the same period of previous year.