1. Summary Information
|
Country |
India |
||
|
Company Name |
APOLLO TYRES LIMITED |
Principal Name 1 |
Mr. Onkar S.
Kanwar |
|
Status |
Excellent |
Principal Name 2 |
Mr. Arun Kumar Purwar |
|
Registration # |
09-002449 |
||
|
Street Address |
6th Floor, |
||
|
Established Date |
28.09.1972 |
SIC Code |
-- |
|
Telephone# |
91-484-2381902 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-484-2370351 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Automobile Tyres |
|
|
# of employees |
5257 [Approximately] |
Product Name 2 |
Automobile Tubes, Automobile Flaps |
|
Paid up capital |
Rs.504.090
Millions |
Product Name 3 |
Camel Black/ Rethreading Materials |
|
Shareholders |
Shareholding of
Promoter and Promoter Group 43.47 %,
Public Shareholding 56.63 % |
Banking |
Bank of India |
|
Public Limited Corp. |
Yes |
Business Period |
40 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Aa (73) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries
|
-- |
Apollo (Mauritius) Holdings Private limited (AMHPL) |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
9,341,280,000 |
Current Liabilities |
12,393,880,000 |
|
Inventories |
11,114,170,000 |
Long-term Liabilities |
20,132,400,000 |
|
Fixed Assets |
28,506,320,000 |
Other Liabilities |
4,692,520,000 |
|
Deferred Assets |
000 |
Total Liabilities |
37,218,800,000 |
|
Invest& other Assets |
8,733,070,000 |
Retained Earnings |
19,971,950,000 |
|
|
|
Net Worth |
20,476,040,000 |
|
Total Assets |
57,694,840,000 |
Total Liab. & Equity |
57,694,840,000 |
|
Total Assets (Previous Year) |
52,486,560,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
81,578,750,000 |
Net Profit |
1,813,330,000 |
|
Sales(Previous yr) |
54,904,860,000 |
Net Profit(Prev.yr) |
1,982,530,000 |
MIRA INFORM REPORT
|
Report Date : |
12.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
APOLLO TYRES LIMITED |
|
|
|
|
Registered
Office : |
6th Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
28.09.1972 |
|
|
|
|
Com. Reg. No.: |
09-002449 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.504.090
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25111KL1972PLC002449 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
CHNA01479C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA6990Q |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of Automobile Tyres, Automobile Tubes, Automobile Flaps
and Camel Black/ Rethreading Materials. |
|
|
|
|
No. of Employees
: |
5257 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (73) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 82000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exists |
|
|
|
|
Comments : |
Subject is a well established company having good track. Financial
position of the company appears to be sound. Directors are reported to be experienced
and respectable businessmen. Trade relations are fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in medium to long
run. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including industrial
deregulation, privatization of state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of persistently
high inflation and interest rates and little progress on economic reforms. High
international crude prices have exacerbated the government's fuel subsidy
expenditures contributing to a higher fiscal deficit, and a worsening current
account deficit. Little economic reform took place in 2011 largely due to
corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA (Long Term Rating) |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
27.08.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short term Rating) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
27.08.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
6th
Floor, |
|
Tel. No.: |
91-484-2381902 to
03/ 2381895/ 2381808/ 2381895/2372767/ 2370780 |
|
Fax No.: |
91-484-2370351 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head/
Corporate Office : |
Apollo House, 7,
Institutional Area, Sector 32, Gurgaon - 122001, |
|
Tel. No.: |
91-124-6383002 to
18/ 2721000 |
|
Fax No.: |
91-124-6383017/
3021 |
|
E-Mail : |
|
|
|
|
|
Factory 1: |
P.O Perambra Thrissur,
District Kerala - 680689, India |
|
Tel. No.: |
91-480-2725901 to 09 |
|
|
|
|
Factory 2: |
Premier Tyres Limited, Kalamassery Always, Ernakulam
(Kerala) – 683104, India |
|
Tel. No.: |
91-484-2540261 to 66 |
|
|
|
|
Factory 3: |
SIPCOT Industrial Growth Centre
Orgadam, Tamilnadu, India |
|
|
|
|
Factory 4 : |
Village Limda, Tal. Waghodia, Baroda, Gujarat, India |
|
|
|
|
Branch Office
: |
4th
Floor, 60 Skylark Building, Nehru Place, New Delhi – 110019, India |
|
Tel. No.: |
91-11-2643 1005 |
|
Fax No.: |
91-11-2647 1283 |
|
|
|
|
Overseas
Office : |
LOCATED AT: ·
·
·
|
DIRECTORS
AS ON 31.03.2012
|
Name: |
Mr. Onkar S.
Kanwar |
|
Designation: |
Chairman and
Managing Director |
|
Qualification: |
B.Sc., Bachelor
of Administration ( |
|
|
|
|
Name : |
Mr. Arun Kumar Purwar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Jacob
Thomas |
|
Designation : |
Managing
Director, Vaniamapara Rubber Company Limited |
|
|
|
|
Name : |
Mr. Neeraj Kanwar |
|
Designation : |
Vice Chairman and
Managing Director |
|
|
|
|
Name : |
Mr. Nimesh N.
Kampani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Raaja Kanwar |
|
Designation : |
Managing
Director, Apollo international Limited |
|
|
|
|
Name : |
Mr. Robert
Steinmetz |
|
Designation : |
Formal Chief of
international Business Continental Ag |
|
|
|
|
Name : |
Mr. K Jose Cyriac |
|
Designation : |
Director (Kerala
Government Nominee) |
|
|
|
|
Name : |
Mr. U. S. Oberoi |
|
Designation : |
Chief (Project
and Corp. Affairs) and Whole Time Director |
|
|
|
|
Name : |
Mr. Machael J.
Hankison |
|
Designation : |
Chairman, The
Spar Group Limited, |
KEY EXECUTIVES
|
Name : |
Mrs. Suman Sarkar |
|
Designation : |
Chief Financial
Officer |
|
|
|
|
Name : |
Mr. Shardul S.
Shroff |
|
Designation : |
Senior Partner,
Amarchand and Mangaldas and Suresh A
Shroff and Company |
|
|
|
|
Name : |
Dr. S. Narayan |
|
Designation : |
Former principal Secretary to the prime minister of |
|
|
|
|
Name: |
Mr. T. Balakrishna |
|
Designation: |
Principal Secretary, industries Government of Kerala |
|
|
|
|
Name : |
Mr. P. N. Wahal |
|
Designation : |
Head –
Secretarial and Company Secretary |
|
|
|
|
Name : |
Mr. P. Prabakaran |
|
Designation : |
Additional Chief Secretary Finance Government of Kerala |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
5330791 |
1.06 |
|
|
211274951 |
41.92 |
|
|
216605742 |
42.98 |
|
|
|
|
|
|
1977000 |
0.39 |
|
|
1977000 |
0.39 |
|
Total shareholding of Promoter and Promoter Group (A) |
218582742 |
43.37 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
44279568 |
8.79 |
|
|
291960 |
0.06 |
|
|
10000000 |
1.98 |
|
|
2040000 |
0.40 |
|
|
112410647 |
22.30 |
|
|
169022175 |
33.53 |
|
|
|
|
|
|
48647965 |
9.65 |
|
|
|
|
|
|
42123919 |
8.36 |
|
|
862346 |
0.17 |
|
|
24785623 |
4.92 |
|
|
3500 |
0.00 |
|
|
2630784 |
0.52 |
|
|
19046078 |
3.78 |
|
|
1000 |
0.00 |
|
|
3104261 |
0.62 |
|
|
116419853 |
23.10 |
|
Total Public shareholding (B) |
285442028 |
56.63 |
|
Total (A)+(B) |
504024770 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
504024770 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Automobile Tyres, Automobile Tubes, Automobile Flaps
and Camel Black/Rethreading Materials. |
||||||||||||||||||||
|
|
|
||||||||||||||||||||
|
Products : |
·
Truck ·
Light Truck ·
Passenger Car ·
Farm |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity* |
Actual Production@ |
|
|
|
|
|
|
Automobile Tyres |
Nos. |
15260280 |
12311542 |
|
Automobile Tubes |
Nos. |
- |
7390015 |
|
Automobile Flaps |
Nos. |
- |
4294937 |
|
Others |
Nos. |
344256 |
280941 |
* As certified by Management (Includes
capacity under lease agreement)
@ Includes production under Lease Arrangement
and purchases/ conversion of finished Goods by conversion Agents as per details
given hereunder:
|
Particulars |
2010-11 Nos. |
|
|
|
|
Tyres |
275238 |
|
Tubes |
7390015 |
|
Flaps |
4294937 |
|
Others |
280941 |
GENERAL INFORMATION
|
No. of Employees : |
5257 [Approximately] |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
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|
Bankers : |
· State Bank of India · Bank of India · Union Bank of India · Canara Bank · State Bank of Patiala · State Bank of Mysore · ICICI Bank · Axis Bank · IDBI Bank · Standard Chartered Bank · BNP Paribas · Punjab National Bank · State Bank of Travancore · Yes Bank Limited · Citi Bank N.A. · HSBC Bank · DBS Bank · Credit Agricole Corporate and Investment Bank (Calyon) · Kotak Mahindra Bank · Bank of Nova Scotia · Deutsche Bank |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
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|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Chennai, Tamilnadu, India |
|
|
|
|
Cost Auditors : |
N P Gopalakrishnan and Company Cost Accountants |
|
|
|
|
Associates : |
· PanAridus LLC, USA |
|
|
|
|
Subsidiary : |
· Apollo Vredestein BV-(AVBV) Netherlands (Subsidiary through Apollo Coop) · Apollo Tyres B.V. (ATBV) (Subsidiary through Apollo Coop) · Apollo Tyres (UK) Private Limited (Subsidiary through ATBV) · Apollo Tyres (Brasil) LTDA. (Subsidiary through Apollo Coop) |
|
|
|
|
Other Related Parties : |
|
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
730000000 |
Equity Shares |
Re.1/- Each |
Rs.730.000 millions |
|
200000 |
Cumulative Redeemable Preference Shares |
Rs.100/- Each |
Rs.20.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
504024770 |
Equity Shares |
Re.1/- Each |
Rs.504.020
Millions |
|
|
Add Forfeited Shares |
|
Rs.0.070
Million |
|
|
|
|
|
|
|
Total |
|
Rs.504.090 Millions |
NOTE:
· Equity Share of Rs.10 each have been sub-divided into ten equity shares of Re.1/- each pursuant to the resolution passed by the shareholders at the Annual General Meeting held on July 26, 2007.
· Details of Shareholders holding more than5%of the Paid Up Equity Share Capital of the Company with Voting Rights:
|
Name of the Shareholder |
As at March 31,
2012 |
As at March 31, 2011 |
||
|
|
No. of Shares |
% |
No. of Shares |
% |
|
|
|
|
|
|
|
Sunrays Properties and Investment Company Private Limited |
44,725,648 |
8.87% |
41,841,629 |
8.30% |
|
Neeraj Consultants Limited |
42,508,141 |
8.43% |
36,201,963 |
7.18% |
|
Constructive Finance Private Limited
|
38,619,357 |
7.66% |
37,924,357 |
7.52% |
|
Apollo Finance Limited |
36,759,650 |
7.29% |
36,759,650 |
7.29% |
·
The
rights, preferences and restrictions attached to equity shares of the Company:
The Company has only one class of shares referred to as equity shares having a par value of Re. 1 each. The holder of equity shares are entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividends proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
· In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
504.090 |
504.090 |
504.090 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
19971.950 |
18451.510 |
16761.870 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
20476.040 |
18955.600 |
17265.960 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13487.100 |
8795.700 |
8759.460 |
|
|
2] Unsecured Loans |
6645.300 |
8146.700 |
2570.160 |
|
|
TOTAL BORROWING |
20132.400 |
16942.400 |
11329.620 |
|
|
DEFERRED TAX LIABILITIES |
2958.610 |
2410.710 |
1974.510 |
|
|
|
|
|
|
|
|
TOTAL |
43567.050 |
38308.710 |
30570.090 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
28506.320 |
23835.770 |
16102.250 |
|
|
Capital work-in-progress |
3106.560 |
3577.750 |
5360.440 |
|
|
|
|
|
|
|
|
INVESTMENT |
5626.510 |
5593.470 |
5593.760 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
11114.170
|
11363.340
|
5527.280
|
|
|
Sundry Debtors |
3639.130
|
2042.800
|
1375.430
|
|
|
Cash & Bank Balances |
1155.930
|
1412.630
|
2588.280
|
|
|
Other Current Assets |
0.000
|
0.000
|
44.180
|
|
|
Loans & Advances |
4546.220
|
4660.800
|
2629.480
|
|
Total
Current Assets |
20455.450
|
19479.570
|
12164.650
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
8160.850
|
7429.090
|
5810.800
|
|
|
Other Current Liabilities |
4233.030
|
4931.740
|
1095.800
|
|
|
Provisions |
1733.910
|
1817.020
|
1744.410
|
|
Total
Current Liabilities |
14127.790
|
14177.850
|
8651.010
|
|
|
Net Current Assets |
6327.660
|
5301.720
|
3513.640
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
43567.050 |
38308.710 |
30570.090 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
81578.750 |
54904.860 |
50365.610 |
|
|
|
Other Income |
181.940 |
485.510 |
111.830 |
|
|
|
TOTAL (A) |
81760.690 |
55390.370 |
50477.440 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
74681.120 |
53316.410 |
42754.970 |
|
|
|
Increase/(Decrease) in Work in Process and
Finished Goods |
234.510 |
(3746.580) |
(226.760) |
|
|
|
TOTAL (B) |
74915.630 |
49569.830 |
42528.210 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6845.060 |
5601.940 |
7949.230 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2413.010 |
1492.920 |
739.460 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4432.050 |
4109.020 |
7209.770 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1856.920 |
1473.540 |
1227.820 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2575.130 |
2635.480 |
5981.950 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
761.800 |
652.950 |
1832.070 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1813.330 |
1982.530 |
4149.880 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
5891.910 |
3245.330 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
NA |
1000.000 |
1000.000 |
|
|
|
Debenture Redemption Reserve |
NA |
112.500 |
62.500 |
|
|
|
Proposed Dividend |
NA |
252.010 |
378.020 |
|
|
|
Dividend Tax |
NA |
40.880 |
62.780 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
6469.050 |
5891.910 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
7731.170 |
4846.780 |
3135.720 |
|
|
|
|
0.000 |
0.000 |
2.520 |
|
|
TOTAL EARNINGS |
7731.170 |
4846.780 |
3138.240 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
27587.600 |
19253.29 |
12426.540 |
|
|
|
Stores & Spares |
59.800 |
42.760 |
78.200 |
|
|
|
Capital Goods |
2403.040 |
3464.700 |
3666.400 |
|
|
TOTAL IMPORTS |
30050.440 |
22760.750 |
16171.140 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.60 |
3.93 |
8.23 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
21523.660 |
22828.670 |
|
Total Expenditure |
|
19308.590 |
20572.460 |
|
PBIDT (Excl OI) |
|
2215.070 |
2256.210 |
|
Other Income |
|
49.770 |
84.690 |
|
Operating Profit |
|
2264.840 |
2340.900 |
|
Interest |
|
617.880 |
694.660 |
|
PBDT |
|
1646.960 |
1646.240 |
|
Depreciation |
|
547.950 |
547.950 |
|
Profit Before Tax |
|
1099.010 |
1098.290 |
|
Tax |
|
346.240 |
346.350 |
|
Profit After Tax |
|
752.770 |
751.940 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
752.770 |
751.940 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.22
|
3.58
|
8.22
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.16
|
4.80
|
11.88
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.26
|
6.08
|
21.16
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.14
|
0.36
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.67
|
1.64
|
1.16
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.45
|
1.37
|
1.41
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
KERALA HIGH COURT
CASE STATUS
INFORMATION SYSTEMS
|
STATUS OF WRIT
APPEAL 1922 OF 2011 |
|||||
|
THE DEPUTY
COMMISSIONER OF CENTRAL EXCIE APOLLO TYRES LIMITED VS. |
|||||
|
Pet’s Adv: |
Mr. John
Varghese, SC, CEN. |
||||
|
|
|
||||
|
Res’s Adv: |
Mr. V. Abraham
Markos |
||||
|
|
|
||||
|
Last Listed On: |
Thursday,
February 09, 2012 |
||||
|
|
|
||||
|
Category : |
Central Excise
Act and Rules |
||||
|
|
|
||||
Case Updated On:
Monday, February 13, 2012 |
|||||
|
STATUS OF REVIEW
PETITION 533 OF 2011 |
|||||
|
THE DEPUTY
COMMISSIONER OF CENTRAL EXCISE APOLLO TYRES LIMITED VS. |
|||||
|
Pet’s Adv: |
Mr. John
Varghese, SC, CEN. |
||||
|
|
|
||||
|
Res’s Adv: |
Mr. Joseph
Kodianthara (S) |
||||
|
|
|
||||
|
Last Listed On: |
Wednesday,
October 19, 2011 |
||||
|
|
|
||||
|
Category : |
Central Excise
Act and Rules |
||||
|
|
|
||||
Case Updated On:
Friday, November 11, 2011 |
|||||
MANAGEMENT DISCUSSION AND ANALYSIS
MARKET OVERVIEW
The
year under discussion closed with a 37% addition to the company’s revenues, with
a 18% growth in operating profits and with net profits being maintained at
earlier levels, despite a 32% increase in raw material costs over the previous
year. Raw material prices escalated in the first half of FY12 and stabilised to
a large extent in the second half of the year. However, relief on natural
rubber prices was nullified due to higher cost of oil-based raw materials –
compounded by an unstable political situation in the Middle East.
From
a revenue segmentation position, India Operations accounted for 67% of net
sales, Europe 23% and Africa 10%. The ratio between Original Equipment
Manufacturers or OEM to Replacement (including exports from respective
manufacturing locations) was maintained at 27% and 73% respectively. In terms
of products, truck bus tyres and passenger vehicle tyres account for the
largest share at48%and33%respectively.
Overall,
FY12 was a year of introduction of more advanced products across every single
customer segment and the implementation of robust quality processes for the
future.
ZONALOVERVIEWS
After
a decade of stable growth, barring the slowdown in 2008, the Indian economy
fell short of steam with weak industrial growth bringing down overall economic
growth to 6.5% in FY12. The year was marked by rising interest rates and
inflation, and hikes in fuel prices.
According
to the Society of Indian Automobile Manufacturers, the auto industry registered
limited growth, with passenger vehicle sales growing by 4.6% and commercial
vehicle sales growing by 18.2% -- the latter being driven by a demand boost in
the light commercial vehicle category.
In
the past fiscal, according to the Automotive Tyre Manufacturers’ Association,
the Indian tyre industry, which closely mirrors prevailing sentiments in the
automotive sector, is estimated to have clocked a turnover of around Rs 300
billion, with exports accounting for Rs.36 billion. Dominated by few large
manufacturers, the total production was recorded at around 1.5 million metric
tonnes.
The commercial
vehicle tyre segment grew by a marginal 3% over the previous year, in terms of
units produced. Largely gaining from an increase in profitability of fleet
owners due to a multitude of factors – ranging from ability to pass on
increased fuel cost to consumers and better efficiencies in operations. The
light commercial vehicle and industrial tyre segments registered maximum
growth, with both growing a healthy 11%. The light commercial vehicle segment
benefitted hugely from the spike in small commercial vehicle sales.
Overall
tyre imports rose by nearly 17% in FY12, boosted by demand amongst original
equipment manufacturers. Imports in the passenger car tyres category grew at
13%.
Throughout
the period under discussion, the European Union’s economy experienced
considerable turbulence for various reasons, including high level of sovereign
debt, slowdown in global demand and low consumer confidence. The impact was
felt on the GDP growth which was around 1.4%, a decline from the previous
year’s 1.9%, with the central and eastern European countries marginally
outperforming their western counterparts. Though the strongest and largest
economy in Europe, Germany, continued to provide economic leadership with GDP
growth at almost 3%.
During
early 2012, the European Central Bank injected significant liquidity into the
banking system which calmed down markets and brought much needed stability. The
Euro appeared to be volatile against all major currencies with the exchange
rate against the US$ peaking to 1.44 before touching a low of 1.28 and
averaging at 1.37 during FY12.
Despite
uncertain economic conditions, new car registrations in Europe grew by 2% over
the previous year.
For
the European tyre industry, the year started with continued strong demand for
passenger vehicle tyres. With inventories at a low level, it was difficult to
satisfy demand from all customers. However, sales slowed down following a warm
winter leaving inventory both with manufacturers and dealers. In Europe, winter
tyre sales accounted for 33% of total sales. The tyre market saw a degrowth
of2%in CY11.
In
South Africa, GDP growth was at 3.1% for CY11. The country’s Central Bank kept
borrowing costs unchanged for a record 16 months after inflation slowed in
February, easing concerns that price pressures may be spreading in the African
continent’s largest conomy. However,
economic hurdles appeared in the guise of exchange rate fluctuations - with an
almost30%swing against the US$ – and precariously balanced relationship with
labour and unions.
In
the South African automobile market, the domestic passenger car segment grew as
much as 17.5%; but well below peak levels witnessed in 2005-07. The light
commercial vehicle market expanded by 11.6%, while demand in the medium and
heavy vehicle segment rose by around 21%. The tyre import market in CY11
accounted for almost 50% of products sold across all segments, putting severe
pressure on the domestic industry and restricting its growth.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Indian tyre
industry, in comparison to its western counterparts, lags behind in
radialisation trends. Radialisation levels for passenger vehicle tyres were
maintained at 98%, while for commercial vehicle segment it was pegged at 22% –
a significant growth of nearly25%over last year.
The top 5 players
– Apollo, Birla, Ceat, JK Tyres and MRF – command over 70% of the market, with
product offerings across all major categories. India continues to be driven by
the commercial vehicle tyre segment, where truck and bus tyres contribute as
much as 55% of the industry’s revenue. The replacement market accounts for 70%
of the revenues, though the OE segment continues to play a crucial role in
terms of volumes and ensuring
product
acceptability in the consumers’ mind.
Amongst those who
set up new manufacturing units in the country were Bridgestone, JK Tyres and
MRF. Bridgestone’s Rs 4.3 billion plant in central India was completed in July
2011. The unit is geared to produce 12,000 truck-bus radials and 120,000
passenger car radials every month. Both JK Tyres and MRF, like Apollo, chose
the southern Indian state of Tamil Nadu as their preferred manufacturing
location. JK Tyres’ facility, which was completed in February 2012 with an
investment of Rs 10 billion, is equipped to manufacture around 208,000
passenger car radials and 33,000 truck-bus radials each month. MRF’s facility,
built with an investment of Rs.9 billion, has a capacity of 350,000 passenger
car radials and 60,000 truck-bus radials per month. Ceat also ramped up
capacity at its unit in Western India with a radial capacity of 150 tonnes per
day. The Michelin facility in Tamil Nadu with a capacity of 2 million truck-bus
radial tyres per year, is currently under construction and expected to begin
production later in the year.
Apollo’s
manufacturing unit in Tamil Nadu, which will attain full capacity in December
2012, has been constructed
to accommodate a manufacturing capability of 480,000 passenger car radials and
180,000 truck-bus radials each month.
Apollo,
Birla, BKT, Falcon, JK Tyres and MRF also sought to expand capacities in their
existing facilities – with combined investment to the tune of Rs 35 billion.
In
FY12, while production of truck-bus and passenger car tyres went up by a
marginal 3% and 4% respectively, light commercial vehicle and industrial tyre
production jumped 11%. The total production in the industry grew by around 5% –
a trend which is expected to continue in the near future.
Exports
out of India grew in most categories and registered the highest growth of 65%
in the off-the road tyre segment.
In
policy developments, legislation on tyre labeling is scheduled to be
implemented in Europe in November 2012; most manufacturers are working towards
achieving compliance for the same. With the new tyre labelling system,
consumers will be informed upfront on where each tyre stacks up on the 3 key
areas of rolling resistance, wet grip and exterior noise.
In
South Africa, the 4 local manufacturers – Apollo, Bridgestone, Continental and
Goodyear – continue to compete in a market which is dominated by imports.
Growth plans were mostly put on hold due to political and economic concerns in
various African countries.
In
CY11 for domestic manufacturers, while the passenger car tyre category grew
marginally, truck bus tyres had a flat year in South Africa
SEGMENT WISE
PERFORMANCE
For
FY12, Apollo Tyres’ India operation’s sales were over Rs 81 billion, a growth
of around 47% over the same period last year. In terms of overall revenue
segmentation, 56% of revenues came from the Indian replacement and 34% from
original equipment manufacturers, with the remaining from exports. The two
large product segments continued to be truck-bus and passenger car accounting
for 65%and16%of revenues.
For
India operations, the area of concern was passenger car tyre sales, which
remained flat, compared to the high growth of previous years. This may be
attributed to low growth in car sales, which took a blow from high interest
rates and rising fuel prices in FY12.
For
the company’s India operations, FY12 was a year of new export markets in Japan,
Malaysia, Sri Lanka, Taiwan, Thailand, Uzbekistan and Vietnam. However, the
area of focus was the Middle East, with Dubai as the hub of operations. Towards
this, Apollo opened its largest office outside its operations in India, South
Africa and the Netherlands, in Dubai.
To
boost consumer sentiment and reward loyal business partners, the company
introduced a slew of initiatives.
For the passenger car category emphasis was
on service and delivery. To begin with, Apollo Direct – a toll free helpline,
to enable customers to select and buy the appropriate tyre was launched. Apollo
Super Zone, large branded retail outlets with a host of facilities like
wireless internet, lounges and entertainment centres, were opened in cities
like Delhi, Dubai and Mumbai to ensure that consumers have a pleasant tyre
buying experience. The company sponsored the 2012 to recognise and facilitate
achievers in the automobile space. For its offroading customers, it brought out
the perfect offering in the form of a premium coffee table book – which covered
a variety of subjects in the 4x4 category. In association with Mahindra and
Mahindra, its OE partner, Apollo co-sponsored the annual monsoon driving
adventure. Safe Drive campaigns to create awareness amongst consumers regarding
tyre maintenance and care continued unabated, much like previous years.
In the commercial vehicle category, while service
and delivery continued to be important, the focus was on empowering customers
to derive the maximum out of their tyres. To this end, India Operations
announced the 1st which recognised and upheld best practice in the
transport sector. While the Apollo Radial Service Assistance programme looked
at improving operational efficiencies of fleet owners. Over 100 retreaders, now
known as Apollo Certified Retreaders, were trained and equipped by the company
for the benefit of its commercial vehicle customers. Similarly, the company
also trained and equipped over 200 tyre fitters, referred to as Expert Tyre
Fitters. The concept of branded retail outlets was also introduced for the
commercial category, with 2 such outlets being opened in transport hubs in Delhi
and Tamil Nadu. Trust Built on Millions of Miles, the all-India customer
connect programme, was launched for the commercial cross ply consumers to
identify and address their concerns.
A
significant milestone was achieved in Q4 FY12 when Apollo’s iconic tyre
manufacturing facility in Chennai produced its millionth truck-bus radial tyre;
the unit went on-stream with an initial production of 250 tyres a day in April
2010, and was gradually ramped up to cross 4,000 a day. In terms of new
products, India operations launched XT-7 Gold+, a benchmark product in the
moderate load segment.
For
the European operations, Apollo Vredestein B V registered an impressive topline
growth of 16% in FY12 over the previous year. This translates into a growth of
around3%in passenger car tyres and5% in agriculture tyres, in volume terms; the
rest is a result of price hikes and an improved sales mix. Apollo Vredestein is
an established player in the replacement market in Europe. Not surprisingly
then, 78% of the revenue came from replacement while original equipment
manufacturers accounted for remaining 19%. The passenger car tyre category
constituted 83% of the total revenue, agriculture tyres contributed 14%.
In
FY12, new product development was led by ultra high performance and high
performance passenger car tyres for both Apollo and Vredestein brands. Europe
operations successfully organised 2 major product launches. Apollo Aspire 4G
was unveiled at the 82nd Geneva Motor Show. It was closely followed by
Vredestein Ultrac Vorti and Sportrac 5, the next generation in this range being
showcased in Budapest at the Hungaroring Formula 1 race track. Critics and
consumers alike appreciated these latest offerings from the company.
Moreover,
the successful introduction of Aspire 4G in Geneva was given an extra push by
“highly recommended” test results of the Apollo Amazer 3G Maxx. The latter
received a favourable report card from the European summer tyre tests conducted
by ADAC, TCS and OEMTC; the results assure customers of the highest quality.
During the year under consideration, Apollo Vredestein also presented its white
sidewall classic tyre, making a clear statement about its ambition to grow in
this niche market as well as its technological capabilities.
OUTLOOK
With
the Indian economy showing a moderate growth trend, reasonable growth is
expected in the automotive industry. As per the Society of Indian Automobile
Manufacturers, the Indian automotive industry is expected to grow about 10-12%
on the back of unfulfilled demand from FY12 and expected interest rate cuts in
FY13. Subsequently, the Indian tyre industry is estimated to grow by around
10%, though challenged by an inverted duty structure and continued high raw
material prices.
Rural
pockets of the country have gradually emerged as promising markets for both
commercial and passenger vehicle products. In keeping with this, almost all
major tyre manufacturers are preparing to build their passenger car and light
truck tyre production capacities.
In
terms of raw materials, the global tyre industry’s focus is likely to be on
efficient inventory management, vendor relationship management, procurement
from low cost sources and raw material substitution. In the near future, major
raw material prices are expected to exhibit an upward trend in the first half
of FY13 with natural rubber and crude oil based raw materials like synthetic
rubber and carbon black also firming up.
In
Europe, most economists are forecasting moderate growth within the Eurozone in
the near future. Individual governments are expected to strike a delicate
balance between spending cuts to manage the deficit and economic growth
initiatives leading to job creation. Austerity programmes together with
continued liquidity injection by the European Central Bank will help in
regaining investor confidence and assist economic stability. Inflation remains
a concern on the back of high prices of crude oil, which is the result of the
political situation in various countries in the Middle East.
Outlook
for Apollo Vredestein B V is largely positive, even though it is expected that
market growth in Europe will be limited. For brand Vredestein, key to growth will be new product development and
entry into new markets. Products from the premium segment under brand
Vredestein are slated to be introduced in key growth markets including India,
South Africa and the Middle East. Brand Apollo, which is now well-positioned in
Europe, is now marketed in Austria, Denmark, Switzerland and Greece in addition
to the existing markets of Germany, Netherlands, United Kingdom and Italy.
In
South Africa, domestic economic growth remains constrained. However, improved
performance of the African economy in Q4 FY12 and a few positive developments
in the global economy indicate a slightly better outlook than the previous
year. Yet FY13 looks to be challenging with South Africa’s economic environment
being affected by the global economic outlook, an impact of the European debt
crisis and commodity price volatility in particular.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
PERFORMANCE
The
financial statements have been prepared in accordance with the requirements of
the Companies Act 1956, and applicable accounting standards issued by the
Institute of Chartered Accountants of India. The management of company accepts
the integrity and objectivity of these financial statements as well as the
various estimates and judgments used therein. The estimates and judgments
relating to the financial statements have been made on a prudent and reasonable
basis, in order that the financial statements are reflected in a true and fair
manner, and also reasonably present the company’s state of affairs and profit
for the year.
OPERATIONS
Subject registered
revenue growth of37%during FY12.
On a standalone
basis, the Company saw a net turnover of Rs 81,579 million as against Rs 54,905
million during the previous financial year. EBIDTA was at Rs 6,845 million as
compared to Rs 5,699 million during the previous financial year. The net profit
for the year was Rs 1,813 million, as against Rs 1,983 million in the previous
fiscal. The raw material cost push continued to pose a challenge.
The consolidated
net turnover of the Company increased to Rs 1,21,533 million during FY12, as
compared to Rs 88,677 million in FY11. The consolidated EBITDA was Rs 11,987
million for FY12 as compared to Rs 10,160 million for the previous financial
year. On consolidated basis, Apollo Tyres earned net profit of Rs 4,099 million
for FY12 as against Rs 4,402 million for the previous financial year.
The amount
available for appropriations, including surplus from previous year amounted to
Rs 8,282 million. Surplus of Rs 6,710 million has been carried forward to the
balance sheet after providing for dividend of Rs 252 million, dividend tax of
Rs 41 million, debenture redemption reserve of Rs 279 million and general
reserve of Rs 1,000 million.
The Company
entered new markets and consolidated its operations in existing ones, with
focus on profitability and internal efficiencies.
PRODUCTION
The Company's
production has shown a consolidated growth of 16%, in production tonnage, by
generating an output of 510,537 metric tonnes (MT) as against 438,524 metric
tonnes in the previous year.
RAW MATERIALS
Raw material
prices continued their upward march in the first half of the year on back of
rising commodity prices. The Euro Zone economic issues and relatively lower GDP
growth rates in China and India had a moderating effect on demand for major
commodities. This in turn acted as a check on soaring prices of major
commodities in the second half of the year with prices stabilizing at high
levels. However, the impact of stabilization in major commodities prices in the
second half of the year in India was partially offset by the weakening of the
rupee against the US Dollar.
The natural rubber
consumption in India has overtaken production leading to a deficit in the
country. The price intervention scheme announced by the Government of Thailand
led to firming up of international prices in latter part of the year.
Crude oil prices
breached the US$ 100 per barrel level, despite decelerating rate of growth in
the wake of a global slump.
There was an increase
of 18% in the prices of crude over previous year. Derivatives of crude, which
are used as raw materials, surpassed the crude trend line and registered a
disproportionate increase leading to a steep increase in the prices of
synthetic rubber and carbon black.
In India, the
antidumping duty continued on import of nylon tyre cord fabric, carbon black
and rubber chemicals. Further a safeguard duty recommendation was also made on
carbon black imports from China.
For FY12, Apollo
Tyres continued its focus on vendor relationship management, procurement from
low cost sources, raw material substitution and efficient current asset
management.
MARKETING
FY12 was a year of
new markets for the Company's operations which commenced exports to Japan,
Malaysia, Sri Lanka, Taiwan, Thailand, Uzbekistan and Vietnam. However, the
area of focus was the Middle East, where Apollo opened its largest office
outside its 3 geographical manufacturing operations.
For the passenger
car tyre category, emphasis was on service and delivery. To begin with, Apollo
Direct tyre helpline, which enables customers to select and buy the appropriate
Apollo tyre for their vehicle by calling on a toll free number, was launched.
Apollo Super Zone, large branded retail outlets with a host of facilities like
wireless internet, lounges and entertainment centres, were opened in cities
like Delhi, Dubai and Mumbai to ensure that consumers have a pleasant tyre
buying experience. The company sponsored the ET Zigwheels Awards 2012 to
recognise and facilitate the achievers in the automobile space. Safe Drive
campaigns to create awareness amongst consumers regarding tyre maintenance and
care continued unabated, muchlike previous year.
In the commercial
vehicle category, while service and delivery continued to be important, the
focus was on empowering customers to derive most out of their tyres. To this
end, Indian operations announced the 1st Apollo Fleet of the Year Awards which
recognised and upheld best practice in the transport sector; while the Apollo
Radial Service Assistance programme looked at improving operational
efficiencies of fleet owners. The concept of branded retail outlets was
introduced for the said category as well, with 2 such outlets being opened in
transhipment hubs in Delhi and Tamil Nadu. Trust built on Millions of Miles,
the all-India customer connect programme, was launched to understand consumer
opinions regarding Apollo tyres and, identify and address their concerns.
In the company's
Europe operations, in FY12, the focus area was new product development and it
was led by ultra high performance and high performance passenger car tyres for
both Apollo and Vredestein brand. Europe operations successfully organised two
major product launches. Apollo Aspire 4G was the first and was unveiled at
Geneva Motor Show. This was closely followed by Vredestein Ultrac Vorti and
Sportrac 5, a new range of ultra high performance and high performance tyres,
being showcased in Budapest.
EXPORTS
India operation's
exports grew the most in the light truck cross ply category by almost 29%. The
other major export categories were truck-bus cross ply and passenger car
radials, with a growth of 17% and 19% respectively. Once again, passenger car
tyres emerged as the highest revenue earners in the export basket. A highlight
of the past year was the introduction of truck bus radial tyres in South East
Asian and Middle Eastern markets.
Like the previous
year, in FY12, the company's European operations largely focused on demand
fulfillment in domestic replacement market and there wasn't much remaining for
exports. South African operations saw export contribute a healthy32%to the
revenue pie, an increase of almost 8% over last year.
EXPANSION PROGRAMME/FUTURE OUTLOOK
In FY12, the company,
at its India operations, successfully completed a 20 MT/day expansion for
production of off highway tyres at its Kalamassery unit in Kerala with an
investment of Rs.400 million.
Apollo Tyres' most
recent greenfield facility in Chennai, India is quickly reaching its planned
capacity. Currently, Chennai unit manufactures 8,100 passenger car tyres per
day and 4,200 truck-bus radial tyres per day; production levels are expected to
achieve 16,000 passenger car and 6000 truck-bus radial tyres per day by Q3
FY13.
At Europe
operations, a state-of-the-art mixer was installed at the Company's facility in
Enschede, the Netherlands. This will make the Company self-sufficient in
compound mixing capacity.
To improve product
quality, Apollo Tyres South Africa decided to invest in a world class Steel
Cord Calendaring facility at its manufacturing unit in Ladysmith; it's expected
to go on line by end ofQ2FY13.
Considering the
current economic and business environment, prevailing sentiments in the
industry and consumer expectations, the company is working on various proposals
to augment production capacities to meet the challenges of a rising market
demand.
CONTINGENT LIABILITIES
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In
Millions) |
|
|
|
|
|
|
Sales Tax |
153.370 |
110.260 |
|
|
|
|
|
Claims against
the company not acknowledged as debts – Employee
Related |
26.970 |
23.900 |
|
– Property
Disputes |
-- |
2.600 |
|
– Others |
19.830 |
8.830 |
|
|
|
|
|
Provision of Security
(Bank Deposits pledged with a Bank against which working capital loan has
been availed by Apollo Finance Limited, an Associate Company) |
63.500 |
73.300 |
|
|
|
|
|
Guarantee given
by Company for the loan taken by Sub-Subsidiary Companies |
-- |
2570.400 |
|
Custom Duty |
-- |
23.500 |
|
Excise Duty* |
253.120 |
199.830 |
*Excludes demand
of (Rs.532.12 Million) raised on one of the Company’s units relating to issues
which have been decided by the Appellate Authority in Company’s favour in appeals
pertaining to another unit of the Company. Show-cause notices received from
various Government Agencies pending formal demand notices have not been
considered as contingent liabilities.
In the opinion of
the management, no provision is considered necessary for the disputes mentioned
above on the grounds that there are fair chances of successful outcome of
appeals.
FIXED ASSETS:
· Freehold Land
·
· Buildings
· Plant and Machinery
· Electrical Installation
· Furniture, Fixtures
· Office Equipments
· Vehicles
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2012
Rs. in Millions
|
Sr. No. |
Particular |
Quarter Ended |
Half Year Ended |
|
|
|
|
30.09.2012 (Unaudited) |
30.06.2012 (Unaudited) |
30.09.2012 (Unaudited) |
|
1. |
Net Sales/Income
from Operations |
22828.670 |
21523.660 |
44352.330 |
|
|
Other operating
income |
0.000 |
0.000 |
0.000 |
|
|
Total Income |
22828.670 |
21523.660 |
44352.330 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
16150.050 |
16365.500 |
32515.550 |
|
|
Purchase
of stock in trade |
666.530 |
642.270 |
1308.800 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
208.390 |
(1313.110) |
(1104.720) |
|
|
Employee
benefits expenses |
1073.260 |
1093.620 |
2166.880 |
|
|
Depreciation
and amortization expenses |
547.950 |
547.950 |
1095.590 |
|
|
Other
expenses |
2474.230 |
2520.310 |
4994.540 |
|
|
Total Expenses |
21120.410 |
19856.540 |
40976.950 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
1708.260 |
1667.120 |
3375.380 |
|
|
|
|
|
|
|
4. |
Other
Income |
84.690 |
49.770 |
134.460 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
1792.950 |
1716.890 |
3509.840 |
|
|
|
|
|
|
|
6. |
Interest |
694.660 |
617.880 |
1312.540 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
1098.290 |
1099.010 |
2197.300 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
1098.290 |
1099.010 |
2197.300 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
346.350 |
346.240 |
692.590 |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
751.940 |
752.770 |
1504.710 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
751.940 |
752.770 |
1504.710 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Re. 1/- Each) |
504.090 |
504.090 |
504.090 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
1.49 |
1.49 |
2.99 |
|
|
b) Basic
and diluted EPS after extraordinary items |
1.49 |
1.49 |
2.99 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
285442028 |
267453528 |
285442028 |
|
|
-
Percentage of Shareholding |
56.63 |
53.06 |
56.63 |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
35109050 |
36700400 |
35109.050 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
16.06 |
15.51 |
16.06 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
6.97 |
7.28 |
6.97 |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
183473692 |
199870842 |
183473692 |
|
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
83.94 |
84.49 |
83.94 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
36.40 |
39.66 |
36.40 |
|
Particulars |
Quarter Ended 30.09.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
9 |
|
Disposed of during the quarter |
9 |
|
Remaining unresolved at the end of the
quarter |
Nil |
STANDALONE STATEMENT OF
ASSETS AND LIABILITIES
Rs. in Millions
|
PARTICULARS |
30.09.2012 Unaudited |
|
Equity and liabilities |
|
|
Shareholders' fund |
|
|
Share capital |
504.090 |
|
Reserve & surplus |
21476.660 |
|
Sub-total
- Shareholders' funds |
21980.750 |
|
Non - current liabilities |
|
|
Long term borrowings |
13505.600 |
|
Deferred tax liability (net) |
3182.340 |
|
Other long term liabilities |
64.370 |
|
Sub-total
- Non-current liabilities |
16752.310 |
|
Current liabilities |
|
|
Short term borrowings |
8283.200 |
|
Trade payables |
7039.180 |
|
Other current liabilities |
5746.070 |
|
Short term provisions |
1570.670 |
|
Sub-total
- Current liabilities |
22639.120 |
|
|
|
|
Total -
Equity & Liabilities |
61372.180 |
|
|
|
|
Assets |
|
|
Non-current assets |
|
|
Fixed assets |
32733.770 |
|
Non-current investment |
5913.660 |
|
Long term loans & advances |
2138.230 |
|
Sub-total
- Non-current Assets |
40785.660 |
|
Current
assets |
|
|
Inventories |
12133.210 |
|
Trade receivables |
3174.000 |
|
Cash & bank balances |
2199.450 |
|
Short term loans & advances |
3079.860 |
|
Sub-total
- Current Assets |
20586.520 |
|
|
|
|
Total –
Assets |
61372.180 |
NOTE:
- The Company's operation comprises of one business segment -
Automobile Tyres, Automobile Tubes and Automobile Flaps.
- Previous period's figures have been regrouped I reclassified
wherever necessary to correspond with the current period’s classification
/ disclosure.
- The Board of Directors of the Company at its meetings held on
October 01, 2012 and November 02, 2012, have approved the Qualified
institutions placement to qualified institutional buyers
("QIBs") up to US$ 150 million (equivalent to approx.
Rs.8000.000 Millions) and preferential allotment of convertible warrants
upto 27,500,000 to certain promoter / promoter group entities,
respectively in accordance with applicable laws and subject to the
approval of shareholders.
- The Competition Commission of India (CCI) has issued an order on
30th October 2012 stating that they have not found sufficient evidence
against allegation of cartelization by certain Indian Tyre Companies,
including Apollo Tyres Limited.
- The above results were reviewed by the Audit Committee and approved
by the Board of Directors at their meetings held on 2nd November 2012. The
stand-alone results of the Company have undergone limited review by the
Statutory Auditors.
WEBSITE DETAILS:
PROFILE:
Subject is a high-performance company and the Indian tyre manufacturer.
Head quartered in Gurgaon, a corporate-hub in the National Capital Region of
India, Apollo is a young, ambitious and dynamic organisation, which takes pride
in its unique identity. Registered as a company in 1976, Apollo is built around
the core principles of creating stakeholder value through reliability in its
products and dependability in its relationships.
Apollo’s present strength and market dynamism steps from its early years of
strife in establishing itself as a tyre manufacturer within the closed Indian
economy. Over two decades, Apollo worked on a portfolio of products, tuned to
customer needs and an array of innovative marketing initiatives to establish
itself as a leader in its home market. Some of these include segmenting
customers by their load and mileage requirements, running tyre loyalty
programmes, establishing customer contact programmes which resulted in better
health and driving habits, introducing India’s first farm radials and India’s
first range of high-speed tubeless passenger car tyres.
For the first time, in 2006 Apollo ventured outside
In 2009, Apollo acquired Vredestein Banden B V in the
The company currently produces the entire range of automotive tyres for ultra
and high speed passenger cars, truck and bus, farm, Off-The-Road, industrial
and specialty applications like mining, retreaded tyres and retreading material.
These are produced across Apollo’s eight manufacturing locations in
In the three domestic markets of
For Subject, offering the right product to the right customer is essential.
Special efforts are made to understand customer needs and segment the market
accordingly. After which, products are developed for niche applications within
a larger category to enable the company to provide efficient, fuel and
cost-saving products to each customer segment. Innovation has always been an
integral part of the Apollo way of doing business, this applies as much to
product development and marketing as to how the company as a whole is focused
on challenging existing boundaries.
An integral part of the Subject world is its community involvement and giving
programmes directly related to its business. In
Apollo is one of the largest corporate investors in developing sporting talent
through its Mission 2018, which is focused on nurturing and training youngsters
in the sport of tennis to enable an Indian to win a Singles Grand Slam
Championship by the year 2018.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.54.32 |
|
|
1 |
Rs.87.36 |
|
Euro |
1 |
Rs.70.36 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
73 |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.