Ashok Leyland Limited, a Hinduja Group company, is a popular truck manufacturer in India. In the recent past it has been having a hectic time in its items related to capital employed. We reproduce the relevant portions of the balance sheet from its annual report for FY2005 to appreciate the same.

The annual report also revealed the following redemption plan for its above mentioned debentures:

(a) What is the most visible change in the share capital of Ashok Leyland? What is this popularly called? Does it involve bringing in new capital?

(b) Can you provide accounting records for the change in share capital for the FY2005?

(c) Based on the limited details provided, please explain the meaning and implication of a Global Depository Receipt?

(d) How many debentures does Ashok Leyland Limited have? What could be the reason for issuing so many debentures?

(e) Based on the debenture redemption plan provided above, please provide the accounting records for the redemption of the debentures for all the years.

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Capital: Issued capital Ashok Leyland Limited Schedule on Shareholders Funds (a) 165,025,815 (2004 33,005,163 Equity shares of 25 each issued earlier, consolidated and subdivided into shares of 10 each) Equity shares of Re. 1 (2004:10) each 2005 Millions 165 2004 Millions 165