MIRA INFORM REPORT

Report Date :

23^rd May, 2006

IDENTIFICATION DETAILS

Name :	APOLLO TYRES LIMITED
Registered Office :	6^th Floor, Cherupushpam Building, Shanmugham Road, Kochi – 682 031, Kerala, India
Date of Incorporation :	28^th September, 1972
Com. Reg. No.:	09-2449
TAN No.: [Tax Deduction & Collection Account No.]	CHNA01479C
PAN No.: [Permanent Account No.]	AAACA6990Q
Legal Form :	It is a Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of Automobile Tyres, Automobile Tubes, Automobile Flaps and Camel Black/Rethreading Materials.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 23000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Available information indicates high financial responsibility of the company. Their trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for normal for business dealings. It can be regarded as a promising business partner in a medium to long-run.

LOCATIONS

Registered Office :	6^th Floor, Cherupushpam Building, Shanmugham Road, Kochi – 682 031, Kerala, India
Tel. No.:	91-484-22381902 / 22381903 / 22381895 / 22381808 / 22381895 /22372767 / 22370780
Fax No.:	91-484-22370351
E-Mail :	info@apollotyres.com
Website :	http://www.apollotyres.com
Corporate Office :	Apollo House, 7, Institutional Area, Sector 32, Gurgaon - 122 001, Haryana
Tel. No.:	91-124-6383002 (17 Lines)
Fax No.:	91-124-6383017 / 3021
E-Mail :	pnwahal@apollotyres.com
Factory :	v Perambra, P.O. Chalakudy, Trichur – 680 689, Kerala v Limda, Taluka Waghodia, Dist. Vadodara – 391 760, Gujarat v Ranjangaon, Nagar Road, Taluka Shirur, District Pune – 419 209, Maharashtra
Branches :	4^th Floor, 60 Skylark Building, Nehru Place, New Delhi – 110 019
Tel. No.:	91-11-2643 1005
Fax No.:	91-11-2647 1283

DIRECTORS

Name :	Mr. Onkar S. Kanwar
Designation :	Chairman & Managing Director
Name :	Mr. Jean Marc Francois
Designation :	Director (Michelin Nominee Director)
Name :	Mr. K. Jacob Thomas
Designation :	Director
Name :	Mr. John Mathai
Designation :	Director (Kerala Government Nominee)
Name :	Mr. M. R. B. Punja
Designation :	Director
Name :	Mr. Neeraj Kanwar
Designation :	Chief Operating Officer & Whole Time Director
Name :	Mr. Nimesh N. Kampani
Designation :	Director
Name :	Suman Sarkar
Designation :	Director
Name :	Mr. Raaja R. S. Kanwar
Designation :	Director
Name :	Mr. Robert Steinmetz
Designation :	Director
Name :	Mr. Shardul S. Shroff
Designation :	Director
Name :	Mr. K Jose Cyriac
Designation :	Director (Kerala Government Nominee)
Name :	Mr. U. S. Oberoi
Designation :	Chief (Project & Corp. Affairs) & Whole Time Director
Name :	Dr. S. Narayan
Designation :	Director (Michelin Nominee Director
Name :	Mr. P. N. Wahal
Designation :	Company Secretary

Name:	Mr. Onkar S. Kanwar
Designation:	Chairman & Managing Director
Age:	56 years
Qualification:	B.Sc., Bachelor of Administration (California)
Experience:	37 years
Date of Joining:	1^st February, 1988
Previous Employment:	BST Manufacturing Limited

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters ' holdings
Indian Promoters	14315400	37.34
Non Promoter's holdings
Mutual Funds and UTI	3326600	8.68
Banks, Financial Institutions and Insurance Companies	3134486	8.18
FIIs	1679472	4.38
Others
Private Corporate Bodies	4497119	11.73
NRIs / OCBs / Foreign Others	316470	0.83
Government	500000	1.30
Others	5712500	14.90
General Public	4855930	12.67
TOTAL	38337977	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Automobile Tyres, Automobile Tubes, Automobile Flaps and Camel Black/Rethreading Materials.
Products :	Item Code No. (ITC Code)-40111000 Product Description-Passenger/Jeep Tyres Item Code No. (ITC Code)-40112000 Product Description-Bus/Lorries Tyres Item Code No. (ITC Code)-40119901 Product Description-Off the Road Tyres Item Code No. (ITC Code)-40119902 Product Description-Tractor Tyres Item Code No. (ITC Code)-40129004 Product Description-Bus/Lorries Flaps Item Code No. (ITC Code)-40131001 Product Description-Passenger/Jeep Tubes Item Code No. (ITC Code)-40131002 Product Description-Bus/Lorries Tubes Item Code No. (ITC Code)-40139003 Product Description-Off the Road Tubes Item Code No. (ITC Code)-40139004 Product Description-Tractor Tubes
Exports to :	Middle East, Pakistan, Africa & South East Asia
Imports from :	Germany, Singapore and U.K.

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Automobile Tyres	Nos.	68,88,640	59,71,492
Automobile Tubes	Nos.	51,76,000	54,10,606
Automobile Flaps	Nos.	--	28,48,843
Camel Black/Retreading Materials	MT	3,000	--

GENERAL INFORMATION

No. of Employees :	5257
Bankers :	v State Bank of India, Kochi, Kerala v Bank of India, Kochi, Kerala v Punjab National Bank, Kochi, Kerala v State Bank of Mysore, Kochi, Kerala v State Bank of Patiala, Kochi, Kerala v State Bank of Travancore, Kochi, Kerala v ICICI Bank Limited, Kochi, Kerala v Union Bank of India, Kochi, Kerala v The Federal Bank Limited, Kochi, Kerala v Canara Bank, Kochi, Kerala v IDBI Bank, Kochi, Kerala v Standard Chartered Grindlays Bank
Facilities :	SECURED As at 31st March, 2005 Debentures Rs./millions 30,10,000 -14.5% Partly Convertible Debentures of Rs. 2221- each . 668.200 Less: Converted into Equity Shares to date 276.900 391.300 Less : Redeemed to date 331.500 5.98 10.00,000 -14.5% Non Convertible Debentures of Rs. 100/- each 100.000 Less: Redeemed to date 100.000 0.000 10,00,000 -11.25% Non Convertible Debentures of Rs. 100/- each 100.000 159.800 Term Loans From International Finance Corporation - Foreign Currency 848.200 - Rupee Loan 643.000 491.200 From Banks: ICICI - Foreign Currency 462.700 G E Capital Services India 284.800 Federal Bank Limited 0.000 Other Loans: Banks - Cash Credit 976.400 Sales Tax Loan 112.600 1009.000 3487.500 UNSECURED Commercial Paper 1500.000 Short Term Loans – From Banks 450.600 - From Others 0.000 1950.600

Banking Relations :	Satisfactory
Auditors :	v Fraser & Ross Chartered Accountants
Associates :	v Dusk Valley Technologies Limited v Travel Tracks Private Limited v Apollo International Limited v Dusk Valley Global Services (Private) Limited v Raunaq Finance Limited v Apollo Tubes Limited v Bharat Gears Limited v Gujarat Perstorp Electronics Limited
Subsidiaries:	Premier Tyres Limited
Membership :	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
48,000,000	Equity Shares	Rs.10/- each	Rs.480.000 millions
200,000	Preference Shares	Rs.100/- each	Rs. 20.000 millions
	GRAND TOTAL		Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38,340,000	Equity Shares	Rs.10/- each	Rs. 383.400 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital	383.400	383.400	363.200
2] Reserves & Surplus	5384.000	5335.900	3831.200
NETWORTH	5767.400	5719.300	4194.400
LOAN FUNDS
1] Secured Loans	3487.500	3764.100	2161.400
2] Unsecured Loans	1950.600	450.000	686.200
TOTAL BORROWING	5438.100	4214.100	2847.600
DEFERRED TAX LIABILITIES	1033.500	0.000	804.800
TOTAL	12239.000	9933.400	7846.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	7501.300	6480.800	4323.600
Capital work-in-progress	843.300	658.400	558.800
INVESTMENTS	544.800	642.100	255.400
CURRENT ASSETS, LOANS & ADVANCES
Inventories	3301.200	2626.600	2164.800
Sundry Debtors	1565.200	877.800	743.700
Cash & Bank Balances	1104.300	1063.500	976.100
Other Current Assets	00.200	0.000	7.500
Loans & Advances	1464.600	3286.900	1188.900
Total Current Assets	7435.500	7854.800	5081.000
Less : CURRENT LIABILITIES & PROVISIONS
Current Liabilities & Provisions	4089.700	5719.200	2433.500
Total Current Liabilities	4089.700	5719.200	2433.500
Net Current Assets		2135.600	2647.500
MISCELLANEOUS EXPENSES	03.800	16.500	61.500
TOTAL	12239.000	9933.400	7846.800

PROFIT & LOSS ACCOUNT

PARTICULARS	30.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	22453.000	23686.800	20270.100
Profit/(Loss) Before Tax	849.100	1052.300	1499.100
Provision for Taxation	172.800	348.100	465.100
Profit/(Loss) After Tax	676.300	704.200	1034.000
Export Value	22.000	NA	48.300
Import Value	NA	NA	2307.200
Total Expenditure	2136.000	22634.500	19359.900

SUMMARISED RESULTS

PARTICULARS	31.03.2006 (Full Year)
Sales Turnover	26255.200
Other Income	69.800
Total Income	26325.000
Total Expenditure	24027.800
Operating Profit	2297.200
Interest	505.600
Gross Profit	1791.600
Depreciation	727.900
Tax	263.400
Reported PAT	781.700
Dividend (%)	450.000

200506 Quarter 1

Expenditure Includes (Increase) / Decrease in Work in Process & Finished Goods Rs (421.30) million Consumption of Raw Materials Rs 3987.30 million Staff Cost Rs 414.60 million Other Expenses Rs 1169.30 million Tax Includes Provision for Current Tax Rs 29.20 million Deferred Tax Rs 43.60 million Fringe Benefit Tax Rs 11.00 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended June 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 06 Complaints disposed off during the quarter 06 Complaints unresolved at the end of the quarter Nil 1. The Company's operation comprises of one segment - Tyres, Tubes & Flaps and therefore, the figures shown above relate to that segment. 2. Company's Plant at Limda was closed for 8 days from May 31, 2005

200509 Quarter 2

Expenditure Includes (Increase) / Decrease in Work in Process & Finished Goods Rs (292.10) million Consumption of Raw Materials Rs 4531.20 million Staff Cost Rs 397.70 million Other Expenses Rs 1097.10 million Tax Includes Provision for Current Tax Rs 59.00 million Fringe Benefit Tax Rs 12.00 million Deferred Tax Rs 06.00 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended September 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 08 Complaints disposed off during the quarter 08 Complaints unresolved at the end of the quarter Nil 1. The Companys operation comprises of one segment - Tyres, Tubes & Flaps and therefore, the figures shown above relate to that segment. 2. During the period under review, the Company has re-aligned its relationship with Michelin group. The Company has divested its share-holding in Michelin Apollo Tyres Pvt Ltd, its joint venture Company with Michelin Group and the loss on such divestment (Net of adjustment from Investment Fluctuation Reserve - Rs 08.40 million) is shown as exceptional item. 3. The above results were taken on record by the Board of Directors at its meeting held on October 31, 2005. 4. Previous periods figures have been regrouped / rearranged wherever considered necessary.

200512 Quarter 3

200512 Quarter 3 --------------- Notes Expenditure Includes (Increase) / Decrease in Work in Process & Finished Goods Rs (103.30) million Consumption of Raw Materials Rs 4803.10 million Staff Cost Rs 412.60 million Other Expenses Rs 1137.00 million Tax Includes Provision for Current Tax Rs 62.50 million Fringe Benefit Tax Rs 10.00 million Deferred Tax Rs (2.70)million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended December 31, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 09 Complaints disposed off during the quarter 09 Complaints unresolved at the end of the quarter Nil 1. The Company's operation comprises of one segment - Tyres, Tubes & Flaps and therefore, the figures shown above relate to that segment. 2. The Board approved the proposal to acquire 100% shareholding of Dunlop Tyres (Pte) Ltd., a tyre manufacturing company in South Africa alongwith some of its subsidiaries incorporated in Zimbabwe and United Kingdom. This is subject to regulatory approvals and compliance of contractual and conditions precedent. The company will invest approximately Rs 2850 million for this acquisition through a special purpose vehicle to be set up as a wholly owned subsidiary. 3. The above results were taken on record by the Board of Directors at its meeting held on January 30, 2006. 4. Previous periods figures have been regrouped / rearranged wherever considered necessary.

KEY RATION

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt Equity Ratio	0.84	0.72	0.76
Long Term Debt Equity Ratio	0.42	0.39	0.39
Current Ratio	0.98	1.05	1.01
TURNOVER RATIOS
Fixed Asset Ratio	2.51	2.74	2.94
Inventory	8.96	9.66	11.30
Debtors	21.75	28.55	16.66
Interest Cover Ratio	2.37	4.30	5.55
Operating Profit Margin (%)	6.44	7.82	11.68
Profit Before Interest and Tax Margin (%)	4.30	5.93	10.03
Cash Profit Margin (%)	4.12	4.93	7.57
Adjusted Net Profit Margin (%)	1.98	3.04	5.93
Return on Capital Employed (%)	10.85	16.30	32.18
Return on Net Worth (%)	9.20	14.30	32.89

LOCAL AGENCY FURTHER INFORMATION

The company has been accredited with ISO 9001 Certification.

The company’s fixed assets of important value includes Land, Leasehold Land, Buildings, Water Supply Installation, Plant & Machinery, Electrical Installation, Furniture & Fixture, Office Equipments and Vehicles.

History

The company commenced its commercial production in 1977.

Subject is the flagship company of the Raunaq Singh Group. Mahindra and Mahindra and TAFC are its major OEM clients. The Company has an MoU with United Tyres, a Canada based giant, for a 50% buy-back agreement and a joint venture agreement with Continental, Germany, for passenger car radial tyre factory at Pune.

It was the first to receive the ISO 9001 accreditation in the Indian Tyre Industry for its entire range of brands. ATL took over Premier Tyres in April, 1995 in which its sick Stallions Tyres came under the Apollo Brand name.

In 1999-2000, the projects of radial passenger capacity of 2000 tyres per day at Vadodara plant and 50000 two/three wheeler tyres at conversion unit had been successfully implemented. This has resulted in improving market shares in the respective segment.

It was the first to receive the ISO 9001 accreditation in the Indian Tyre Industry had been successfully implemented, this has resulted in improving market shares in the respective segment.

It has invested Rs. 2300.000 millions in Kerala at its’ Perambra plant and the expansion programme is being implemented in a progressive manner. The company would invest Rs. 1500.000 millions for the manufacture of radial tyres at Vadodara and the project activities is in full swing. The first of the Truck radial Tyres was set to roll out by April, 2004.

During the year 2002-03 the capacity of the Perambra plant was increased from 147 tons to 200 tons per day. The expansion programme was completed in March, 2003. As of May 2003 the Share Capital of the company stands reduced to 326.300 millions due to buy back of 3.690 millions shares @ Rs. 90/- per share. The expansion programme for its subsidiary company which is under lease with company viz Premier Tyres Limited is being implemented in progressive manner. After the expansion programme the capacity would be enhanced from 58 tons per day to 78 tons per day.

Press Releases

14/06/2005

Apollo Tyres Ltd.

Apollo Tyres Ltd. Limda plant returns to normalcy
In three shifts work resumes in full swing

Limda, Baroda, 14 June 2005: Normalcy has returned to the Apollo Tyres Ltd’s state-of-the-art facility in Limda, outside Baroda city. Since the beginning of the week, production has been underway at the plant in the normal practice of three shifts. Speaking on the same, Mr Satish Agarwal, Head, Limda Plant said, “We are glad that almost all our employees have reported back to work. Our strength lies in the positive spirit that our employees have shown during these past two weeks. Regrettably, some employees had been taken in by vested interests, however their maturity and commitment to the organisation is clearly evident. I am glad to have the Apollo Limda Family together again.”

Apart from impacting production at the plant, the strike would also mean a substantial loss of revenue to the Gujarat government in terms of excise tax paid by the company to the state. Other states will stand to lose revenue in sales tax, at the point of sales.

09/06/2005

Apollo Tyres Ltd.

Apollo Tyres’ Limda facility returning to normalcy

Limda, Baroda, 9 June, 2005: Apollo Tyres Ltd. (ATL) is a leader of the Indian tyre industry and one of the fastest-growing global tyre companies. The Baroda plant of Apollo Tyres is the biggest tyre manufacturing facility not only in India, but also across neighbouring countries in South East Asia. The plants contribution to the group’s annual turnover is in excess of Rs 1,2000.000 Millions. The company closed FY 2004-05 with a gross turnover of Rs 2,6560.000 Millions , a 15% growth over last year.

The Limda facility was set up in 1991 and currently produces 13 to 14,000 tyres a day, both radial and bias tyres for India and the export market. In the past two years Rs 3000.000 Millions have been invested here making it a state-of-the-art facility.

The factory had been running on full capacity when on the midnight of 30 May 2005, the leadership of one of the three trade unions forced work to come to a standstill. Such stoppages without prior notice are deemed illegal by existing labour laws and was prohibited by an order issued by the Government of Gujarat on 7 June 2005. Post which the factory resumed operations.

Certain members of the union issued death threats to workers reporting for duty and even threatened the management of the factory with dire consequences.

Given that only a few individuals are involved in furthering their vested interests, Apollo wishes to stand by all its employees and their welfare. These vested interests have managed to create a temporary distraction. However, the company is of the firm belief that all employees will see through the current situation and return to the Apollo fold. The company has immense faith in its employees who have contributed to its growth over the years and wishes to create a harmonious environment for their growth.

Currently, it has focussed all its efforts in ensuring workers can perform in a safe environment.

Said Mr Satish Agarwal, Head, Limda Plant: "At Apollo Tyres our employees are part of our larger family. They have always been out biggest asset and will continue to be so. We will take all safeguards to ensure their well-being. To ensure their growth in future, we plan to continue to upgrade and increase capacity at the Limda plant over the next few years to make it one of the best in the world and a point of pride for Gujarati, and all Indians."

Said Mr Neeraj Kanwar, Chief Operating Officer, Apollo Tyres Ltd: "Apollo believes in adhering to the laws of the land while running its operations. It is currently one of biggest employers and revenue generators for the state of Gurajat with the highest industrial wage and perquisites in Baroda. We will continue to work towards the benefit of our employees and other stakeholders."

Apollo Tyres also believes in contributing to the society from which it receives so much support. In keeping with this philosophy, it runs HIV/AIDS awareness Clinics across the country for long-distance truck drivers. In Limda and Ishwarpura villages of Wagodia Taluka, Vadodara, it provides support to the local school, provides healthcare facilities to the villagers and runs women’s adult literacy programmes.

These projects will be scaled up substantially over the coming year. Apollo is also one a sponsors to the Emergency Medical Service being set up for Baroda residents to ensure fast and efficient medical attention in case of an emergency.

07/06/2005

Apollo Tyres Ltd.

Apollo Tyres registers highest ever quarterly sales in Q4 2005

Gurgaon, Haryana, June 7, 2005: Apollo Tyres Ltd. (ATL) leaders of the Indian tyre industry and one of the fastest-growing global tyre companies, today announced its audited financial performance for Q4 2004-05 and FY 2004-05.

For the year ending 2004-05 Apollo Tyres Ltd. posted a gross turnover of Rs 2,6560.000 Millions a 15% growth over the previous year. The company has also registered the highest quarterly sales ever achieved in its history, of over Rs 7500.000 Millions in the last quarter of 2004-05. This marks a 21% topline growth over the same quarter last year.

Despite a year of uncertainties in the tyre industry, ATL continued to maintain its reputation of being the fastest growing and the most profitable large tyre company in India, with a 3% net profit.

Mr Onkar S Kanwar, Chairman and Managing Director, Apollo Tyres Ltd. said: “Apollo’s performance reflects our ability to consistently deliver high performance by providing quality products to our customers. sales growth has allowed us to maintain a robust bottomline even in a very tough year. The demand outlook for the industry continues to remain healthy and we believe we are best positioned to convert these opportunities into reality. For the coming year, we will continue to focus on new products, on increasing efficiency across facilities and on expansion of our existing markets and operations.”

What has marked the year gone by is a sharp rise in nearly all crude-based raw materials. Raw material costs have increased by over 19%, putting pressure on the bottomline.

Speaking on the occasion, Mr Neeraj R S Kanwar, Chief Operating Officer, said: “Managing rising raw materials costs has been a huge challenge this year and this is reflected in the erosion of our net profit. However, we continue to remain, by far, the most profitable tyre company in India due to various measures that we have undertaken over the course of the year, including achieving double the industry growth rate in the light commercial vehicle (LCV), farm and passenger car radial (PCR) tyre segments.”

In 2004-05, the industry’s LCV tyre production grew by 21% compared to ATL’s 44%, farm tyre production was up 30% where ATL grew by 78%; and the PCR tyre segment grew by 19% in 2004-05, while ATL notched growth of 58%.

Added Neeraj Kanwar, “Our thrust in the coming year will continue to lie in increasing our market share in each of the key segments, by bringing in high technology products catering to specific customer needs. Our increasing market share in the passenger car replacement and OEM segments is a telling story of the success of Acelere, India’s first range of ‘H’ speed-rated tubeless tyres that we launched last year. It is apparent that Indian customers are as savvy as their counterparts abroad and keen to use high technology products. We will continue to fulfil this need.”

The Annual General Meeting will be held in Cochin, Kerala, on the 22 July 2005, to approve among other matters, the payout of a 45% dividend for the year gone by.

31/05/2005

Apollo Tyres Ltd.

Production stopped at Limda Plant of Apollo Tyres Ltd.

The management of the Limda plant of Apollo Tyres Ltd. has urged workers to resume work following an illegal action initiated by the President of the Apollo Tyres Employees Union, one of the three unions at the plant. Production stopped at 11.30 pm on May 30th 2005.

The concerned employee exhorted a group of employees to strike work on the issue of future staffing at the plant. This unwarranted action was taken even as the company was actively engaged in a constructive dialogue with the union representatives on the matter. This also included the concerned individual.

We view the call to strike work by this group as illegal, unjustified and an attempt to coerce the company. Apollo Tyres stands firm to its values and will be initiating appropriate steps to resolve this situation.

We remain obligated to developing a sustainable and a profitable business that creates value for all its stakeholders – customers, employees, partners and shareholders.

Press contact:
Moneeta Passi
genesis public relations
e-mail: mpassi@genesispr.com
Fax: 0124-500XXXXX

27/05/2005

Business Standard

Rising rubber rates may force tyre-markers hand

The Rs. 120000.000 Millions Indian tyre industry is bracing for a yet another price hike following a steep increase in the price of domestic natural rubber. "The prices of natural rubber this time has been shot up due to slightly delay in the arrival of monsoon in Kerala. Though this need not have resulted in a price increase it has managed to do so due to speculations." Said Apollo tyres.

22/04/2005

The Hindu Business Line

HIGH INPUT COSTS TO PUSH UP TYRE PRICES

Kochi: High input costs, following increase in natural rubber and crude oil prices, might compel the tyre industry to raise the prices of tyres this year also, according to Mr Neeraj Kanwar, Chief Operating Officer, Apollo Tyres Ltd (APL). Talking to media persons here on Wednesday on the occasion of the company completing 30 years of operations of its first tyre manufacturing unit in the country at Perambra in Kerala's Thrissur district, he said 50-80 per cent of the raw material was crude oil based products and the remaining is natural rubber

17/04/2005

The Hindu Business Line

APOLLO'S PERAMBRA UNIT COMPLETES 30 YEARS OF OPERATIONS

Kochi: The first tyre-manufacturing unit of the Apollo Tyres Ltd (APL) at Perambra in Thrissur district celebrated its 30 years of successful operations. The unit, which was set up on April 13,1975 and started commercial production in March 1977 with an initial capacity of 50 tonne a day, has so far manufactured 16 million tyres, according to an official release here. Today, it is the largest private sector unit in Kerala with a production of Rs 9000.000 Millions , Mr Onkar S. Kanwar, Chairman and Managing Director, APL, said on the occasion. The unit currently employs 2,500 people and produces an entire range of tyres for trucks, passenger cars, light commercial vehicles, rear and front tractor tyres as well as farm radial rear tractor tyres, he said.

13/04/2005

Financial Express, Amar Ujala, Hindustan, Deccan Chronicle, Nav Bharat Times, City Express

Bharti to invest $900bn.

Airtel also launched India’s longest car rally inviting participants from all around in partnership with Federation of Motor Sports Club of India, Ernst&Young, Ericson and Apollo tyres

11/04/2005

The Hindu Business Line

APOLLO TYRES HIKES PRICES BY 3-4 PC

New Delhi: Apollo Tyres Ltd (ATL) has hiked product prices by 3-4 per cent with effect from April 1. The latest increase has been effected on the company's entire product range which caters to the replacement market, according to Mr Neeraj Kanwar, Chief Operating Officer, ATL. "We are also in negotiations with the various original equipment manufacturers for a price increase," Mr Kanwar told Business Line here. The latest price increase came nearly a month after the company cut product prices (2-4.5 per cent) across different categories to pass on the benefits arising from the duty changes announced in the Union Budget.

17/05/2006

Apollo Tyres Ltd moves closer to being a complete tyre solution provider
Launches DuraTreads – a brand of high quality pre-cured tread rubber

Gurgaon, Haryana, May 17, 2006: Keeping with the company’s plans of becoming a 360-degree product and service provider, Apollo Tyres Ltd has launched the DuraTreads brand of re-treading material for commercial vehicles in Southern India. Manufactured in Apollo’s Kalamassery plant near Cochin, DuraTreads will subsequently be available across the country by leveraging Apollo’s operations network.

The re-treading material has been tested extensively by Apollo Tyres to establish its quality standards. Testing against existing brands showed DuraTreads’ higher performance on parameters of life and mileage, lower fuel consumption and the crucial aspect of better bonding between tyre tread and casing.

Speaking on the occasion, Mr Neeraj R S Kanwar said, “With better road infrastructure and the arrival of multi-axle commercial vehicles, this is the right time to offer our customers high quality re-treading material that will extend the life of their tyres. The market is largely unorganised, but has shownconsistent growth every year. With our presence we hope to bring in quality standards in both the product and the process of re-treading. For this we will undertake extensive training of re-treaders. We have begun with re-treads for light and heavy commercial vehicles, but will expand our portfolio to cater to the export market and the high demand re-treading of Off-The-Road (OTR) vehicles.”

DuraTreads is part of Apollo Tyres’ larger forward integration plan. This initiative follows the introduction of a range of alloy wheels for passenger cars called Acelere Wheelz, the training and setting up of Tubeless Service Points for the correct repair of tubeless tyres and the training and establishment of Expert Tyre Fitters for proper fitment of commercial vehicle tyres.

05/05/2006

Apollo Tyres crosses the Rs 3,000 crore turnover milestone.
Notches up an 18% sales growth in Q4 & FY 2005-06 with a net profit jump of 30% in Q4. Company maintains annual profitability position in challenging times.

Gurgaon, Haryana, May 5, 2006: The Board of Directors of Apollo Tyres Ltd. today approved the company’s audited financial results for the fourth quarter and the financial year 2005-06. The Board also recommended a dividend payout of 45%, which will need ratification at the company’s AGM later in the year. At the close of this financial year, Apollo Tyres Ltd. crossed the Rs 3,000 crore (3002.1) turnover mark, compared to Rs 2656.8 crore in 2004-05.

The company also retained its net profit margin for the year at 3%, despite an exponential rise in prices of natural rubber and crude over the course of the year. Between FY2004-05 and FY2005-06 prices of natural rubber went up by 28% and of crude by 35%. These two items account for over 65% of all raw material costs.

Performance Highlights
Q4 FY2005-06 (January-March) vs Q4 FY 2004-05
• Net sales grows by 17% to Rs 850.7 crore from Rs 752.7 crore
• Operating profit, excluding other income, at Rs 56.4 crore, higher by 38%, from Rs 40.9 crore
• Net profit at Rs 26.4 crore, 30% higher, from Rs 20.3 crore

Financial Year 2005-06 (April-March) vs Financial Year 2004-05
• Net sales up 18% to Rs 2625.5 crore from Rs 2225.4 crore
• Operating profit, excluding other income, at Rs 222.7 crore, higher by 35%, from Rs 164.8 crore
• Net profit stood at Rs 78.2 crore, an increase of over 15%, from Rs 67.6 crore

Commenting on the results, Mr Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd, said: “It is the third consecutive year of high raw material costs, with a sharp increase of over 15% compared to the previous year. However, our product price increases have not been in line with this. To balance the cost-push on this front, we have taken steps within the company to increase efficiencies across functions. We will have to continue to do this, since the challenge of high raw material prices will be with the industry for this year also.” Mr Kanwar further added that the company has set steep targets for the coming years which would allow Apollo Tyres to attain global scales of operation, while continuing to play a leading role in the Indian tyre industry.

Annual Corporate Highlights
• The acquisition of Dunlop Tyres International in South Africa, making Apollo the first Indian tyre manufacturer to have a global footprint
• A 12% growth in overall production
• A double digit growth of 18% over the course of the year, compared to the industry average of over 11%, in segments Apollo is present *
• A growth of over 36% in sales of passenger car tyres – the highest in the industry *
• A growth of over 11% in sales of jeep tyres, where the industry has witnessed a negative rate of 
growth *
• Activation of Apollo Mobile, an sms-based dealer and sales force, stock and credit facility allowing them instant data updates at all times
• Development of dual-bead light truck tyres to increase safety even under high loads
• Partnerships with Reliance Petroleum, ONGC (Oval) and Tata Motors to market the Apollo’s commercial vehicle tyre range
• The launch of Acelere Wheelz, high quality alloy wheels to complement passenger car tyres
• Setting up of 160 Tubeless Service Points across India to facilitate the repair of tubeless tyres
• The setting up of Expert Tyre Fitter outlets, with the requisite training, to ensure proper fitment of truck tyres for greater safety and mileage
• Switchover to energy efficient systems resulting in reduction of power and fuel consumption per metric tonne
• Sponsorship of all training costs of the 13-year-old Indian tennis prodigy Yuki Bhambri
• Opening of three new HIV/AIDS clinics for truckers in Udaipur in Rajasthan, Kanpur in Uttar Pradesh and Ukkadam in Tamil Nadu, to create awareness and the prevention and cure of sexually infectious diseases, among truckers and the associated service community.

24/04/2006

Apollo Tyres Ltd concludes the acquisition of Dunlop, South Africa

Gurgaon, Haryana, April 24, 2006: Apollo Tyres Ltd has formally concluded the process of acquiring Dunlop Tyres International (Pyt) Ltd (Dunlop South Africa) in a Rs 290 crore all cash deal. Apollo’s Board of Directors had approved this acquisition on January 31, 2006, at a board meeting in Mumbai. All regulatory approvals in India and South Africa alongside the transfer of shares have already been completed. Dunlop South Africa will now become a part of the Apollo Tyres Group.

Dunlop South Africa is headquartered in Durban and owns subsidiaries in Zimbabwe and the United Kingdom. Through this acquisition, Apollo’s base of manufacturing units enlarges to include facilities in Durban and Ladysmith in South Africa and in Bulawayo and Harare in Zimbabwe. This acquisition
will lead to a distinct set of synergies for the Apollo Tyres Group in product profile, market access, R&D, manpower resources and the ability to optimise on cost, product and manufacturing facilities.

Speaking on the acquisition Mr Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd, said: “Dunlop marks the first of Apollo’s global footprint, expanding the reach of our exports and enlarging our customer base. This is our springboard into the global arena. We will use the Dunlop distribution channels for our exports and to take the Apollo brand into Africa, even as we bring in brands made by Dunlop for our Indian customers. The two management teams are already working together to ensure a quick and effortless transition where the best products and services can be delivered to all customers and distributors at the earliest.”

As part of the Apollo Tyres Group, Dunlop South Africa will continue to be managed by the existing management team in South Africa and Zimbabwe. Chief Executive Officer of Dunlop South Africa, Mr Mike J Hankinson said: “This acquisition establishes the first truly global link between India and South Africa, with all the opportunities that both countries have to offer to each other. Added to that the cultural similarities that our two companies share is going to ensure a seamless integration resulting in greater business effectiveness.”

Brief Profile: Dunlop Tyres International (Pty) Ltd’s three manufacturing units in South Africa and Zimbabwe produce the entire range of bias and radial products – from high-end truck and bus tyres to industrial, farm, light truck, off-road and mining tyres, high-speed passenger car radials and ultra high performance car tyres. Apart from tyres made under the world renowned Dunlop brand, it is also the manufacturer of high-value brands like Regal and India; has exports to Europe, Central Asia, Australia and South America and has contract manufacturing with key international players. In addition, Dunlop SA is the sole distributor of Cooper Tyres in Southern Africa. Like Apollo’s exclusive dealerships, Apollo Tyre World, Apollo Radial World, and Apollo Pragati Kendra, Dunlop SA has over 230 exclusive multi-brand dealerships called Dunlop Accredited Distributors or DAD across South Africa and Zimbabwe. Through the acquisition, Apollo will also gain a substantial shareholding in National Tyre Services (NTS), Zimbabwe – a major tyre distributor and re-treading company with a manufacturing unit in Harare. NTS has a technology tie-up with Bandag, the worldwide leader in the field of re-treading technology.

OPERATIONS: 

During the financial year ended March 31, 2005, sales from operations recorded all time high of Rs.2,6568.100 millions as against Rs.23143.100 millions during the previous year, recording a growth of 14.80 per cent. Operating profit, before interest and depreciation, amounted to Rs.1846.400 millions, as against Rs.1675.800 millions during the previous year. Net profit, after providing for interest, depreciation and tax amounted to Rs.676.300 millions, as against Rs.704.200 millions during the previous year. The Company has achieved sustainable growth in its operations supported by aggressive marketing policy, motivated management team, better operating and financial efficiencies. The cost management and strategic management techniques helped in maintaining a good profitable track record despite increase in input costs which could not be fully passed on to the customers. "Michelin Apollo Tyres Private Ltd." (MATL) a Joint Venture Company was formed last year when your company entered into astrategic alliance with Compagnie Financiere Michelin, France for producing dual branded truck and bus radial tyres in India. MATL has undertaken import of radial tyres for sale in India, pending implementation of project being planned for manufacture of dual

branded TBR tyres.

JOINT VENTURE WITH MICHELIN: 

 Reaching better horizons by fostering new partnerships. 

The directors are glad to inform you that November 17, 2003 was not only a significant moment for the Indian tyre industry but a historic moment, when company, Apollo Tyres Ltd. (ATL) entered into a strategic alliance with Michelin, France for setting up a joint venture company "Michelin Apollo Tyres Pvt. Ltd." for producing dual branded truck & bus radial tyres in India. Both parties intend to make an investment of $75 million in the ratio of 51:49 at the upcoming plant in Ranjangaon in Maharashtra. This new facility is likely to commence commercial production by September 2005 and produce 0.350 millions truck and bus radial tyres by 2007. 

Michelin will also provide technical assistance to Apollo for manufacturing of passenger car radial tyres. This would enhance the Company's capability to provide world-class products to its customers. 

 Pursuant to the joint venture with Michelin, your company allotted 5.712 millions equity shares representing 14.9% of share capital, to Compagnie Financiere Michelin at a price of Rs. 236 (including Rs. 226 towards share premium) for an aggregate sum of Rs. 1348.200 millions by way of preferential allotment. The allotment was made in accordance with the SEBI Guidelines on receipt of necessary regulatory approvals etc. The funds raised through preferential allotment have been utilised for financing the above Joint Venture project, besides working capital and for other general corporate purposes. 

PRODUCTION: 

Increased production for increased profits 

During the year 2004-05, your company has achieved 10% growth in production tonnage by registering production of 22.400 millions MT as against 20.300 millions MT in the previous year. All the expansion programmes were implemented successfully as envisaged by

increasing the total capacity across the plants to 628 MT/day from 532 MT/day.

EXPORTS:  

Augmented exports despite fierce competition 

The world tyre market is characterized by increased radialization and enhanced influence of Chinese Tyres. Both these are posing a challenge to the Indian tyre manufacturers who predominantly export Bias tyres. We have been able to rise to the occasion and

have substantially increased export volumes and prices during the year under review.

EXPANSION PROGRAMME/FUTURE OUTLOOK:

Fortifying production for higher market shares. 

The company has plans for a rapid expansion in passenger car and light truck radial tyre categories in near future, increasing thecapacity of the passenger car radiais to 0.3 millions units per month and light truck radials to 0.05 millions units per month at our radial facility at Vadodara. To optimise the upstream capacityavailable, further expansions are proposed at both Vadodara & Kochi plants to reach to achieve production capacity of 360 MT/day & 270 MT/day respectively.It is constant endeavour to optimise the capacity utilisation and enhance productivity levels to achieve company's objective by z de-bottlenecking methodology and utilising full capacity of upstream equipment.

SUBSIDIARY COMPANY

Pursuant to the exemption granted by the Central Government vide their letter No.47/160/2005-CL-lll dated 26*1 May, 2005, the annual report of PTL Enterprises Ltd. (formerly known as M/s Premier Tyres Ltd) (PTL), a subsidiary of your company, for the year

ended 31s1 March, 2005 has not been annexed in terms of section 212 of the Companies Act, 1956. However, the information of the subsidiary company is annexed with the consolidated accounts attached herewith in accordance with the requirements of government order and the accounting standards. The copy of the annual report of the subsidiary company, PTL, will be made available to the shareholders on request and will also be kept for inspection by any investor in the registered office and corporate office of Apollo Tyres Ltd. and the subsidiary company.

BUSINESS OUTLOOK

The Company has made rapid strides in developing and producing hi-tech radial tyres, which culminated in the successful launch of the new 'H' rated Acelere range of tyres. The Company plans to produce ultra high performance tyres and complete rapid expansion of Passenger Radials and Light Truck Radial Production. The Light Truck Radial output is likely to leapfrog to thrice the existing capacity. In addition, planned expansions of cross-ply truck tyre capacity, in line with the increasing domestic market demand, are under completion at both Baroda and Cochin Plants to 270 MT/day. It is a constant endeavor to optimize the capacity utilization and enhance product capability to achieve the Company's objectives.

Contacts

Registered Office

Apollo Tyres Ltd.
6th Floor, Cherupushpam Bldg., Shanmugham Road, Cochin-682031 (Kerala)
Tel : 0484-2381902, 2381903, 2380720, 2372767, 2363760

Head Office

Apollo Tyres Limited
Apollo House, 7 Institutional Area, Sector-32, Gurgaon Haryana - 122001, India
Tel : +91 (124) 2383002-18

General Enquiries --------------------------------------------	info@apollotyres.com
Marketing & Sales -------------------------------------------	marketing@apollotyres.com
Business Development & Strategies -----------------	corporate.strategy@apollotyres.com
Exports ---------------------------------------------------------	corporate.strategy@apollotyres.com
Secretarial - Investor Grievances ----------------------	secretarial@apollotyres.com
Shares & Debentures --------------------	secretarial@apollotyres.com
Careers -------------------------------------------------------	careers@apollotyres.com
Corporate Communication ------------------------------	corporate.comm@apollotyres.com
Training -------------------------------------------------------	management.development@apollotyres.com
Purchase - Raw Material ---------------------------------	corporatepurchase.rm@apollotyres.com
Manufacturing -------------------------------	corporatepurchase.mfg@apollotyres.com
Information Technology -----------------------------------	dheeraj.sinha@apollotyres.com

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 45.52
UK Pound	1	Rs. 85.79
Euro	1	Rs. 58.46

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		65

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions