MIRA INFORM REPORT

Report Date :

02.05.2014

IDENTIFICATION DETAILS

Name :	APOLLO TYRES LIMITED
Registered Office :	6th Floor, Cherupushpam Building, Shanmugham Road, Ernakulam – 682031, Kerala
Country :	India
Financials (as on) :	31.03.2013
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 Exchanges.
Line of Business :	Manufacturing of Automobile Tyres, Automobile Tubes, Automobile Flaps and Camel Black/Rethreading Materials.
No. of Employees :	Information Decline by the management

RATING & COMMENTS

MIRA’s Rating :

A (62)

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 93650000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established and reputed tyre manufacturer in India having fine track record. The rating reflect Apollo’s strong market position in the Indian tyre industry, and diverse revenue profile with a presence across geographies, products and consumer categories. Further rating also reflects healthy financial risk profile and sound profitability levels. Trade relations are reported as 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.

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
India	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

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	AA (Long Term Rating)
Rating Explanation	High degree of safety and very low credit risk.
Date	24.01.2014

Rating Agency Name	CRISIL
Rating	A1+ (Short Term Rating)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	24.01.2014

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.

INFORMATION DECLINED

Management non-cooperative (Tel. No.: 91-124-2721100)

LOCATIONS

Registered Office :	6^th Floor, Cherupushpam Building, Shanmugham Road, Ernakulam – 682031, Kerala, India
Tel. No.:	91-484-2381902 to 03/ 2381895/ 2381808/ 2381895/2372767/ 2370780
Fax No.:	91-484-2370351
E-Mail :	info@apollotyres.com pn.wahal@apollotyres.com
Website :	http://www.apollotyres.com
Head/ Corporate Office :	Apollo House, 7, Institutional Area, Sector 32, Gurgaon - 122001, Haryana, India
Tel. No.:	91-124-6383002 to 18/ 2721000
Fax No.:	91-124-6383017/ 3021
E-Mail :	pn.wahal@apollotyres.com
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 :	4^th 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: · South Africa · Zimbabwe · Netherlands

DIRECTORS

As on: 31.03.2013

Name:	Mr. Onkar S. Kanwar
Designation:	Chairman and Managing Director
Qualification:	B.Sc., Bachelor of Administration (California)
Name :	Mr. Neeraj Kanwar
Designation :	Vice Chairman and Managing Director
Name :	Mr. Arun Kumar Purwar
Designation :	Non-Executive Independent Director
Name :	Mr. K. Jacob Thomas
Designation :	Non-Executive Independent Director
Name :	Mr. K S Srinivas
Designation :	Nominee Director – Govt of Kerala (Equity Investor)
Name :	Mr. M R B Punja
Designation :	Non-Executive Independent Director
Name :	Mr. Nimesh N. Kampani
Designation :	Non-Executive Independent Director
Name :	Mr. Robert Steinmetz
Designation :	Non-Executive Independent Director
Name :	Mr. Suman Sarkar
Designation :	Chief Financial Officer and Whole Time Director
Name :	Mr. Shardul S. Shroff
Designation :	Non-Executive Independent Director
Name :	Dr. S. Narayan
Designation :	Non-Executive Independent Director
Name :	Mr. U. S. Oberoi
Designation :	Chief (Corporate Affairs) and Whole Time Director
Name :	Dr. V P Joy
Designation :	Nominee Director – Govt of Kerala (Equity Investor)
Name :	Mr. Vikram S Mehta
Designation :	Non-Executive Independent Director
Name :	Mr. Alkesh Kumar Sharma
Designation :	Nominee Director – Govt. of Kerala (Equity Investor)

KEY EXECUTIVES

Name :	Mr. P N Wahal
Designation :	Head (Sectt. and Legal) and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	5330791	1.06
Bodies Corporate	211949951	42.05
Sub Total	217280742	43.11
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	1977000	0.39
Sub Total	1977000	0.39
Total shareholding of Promoter and Promoter Group (A)	219257742	43.50
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	20390563	4.05
Financial Institutions / Banks	167918	0.03
Central Government / State Government(s)	10000000	1.98
Insurance Companies	1645000	0.33
Foreign Institutional Investors	173869283	34.50
Any Others (Specify)	7419144	1.47
Any Other	7419144	1.47
Sub Total	213491908	42.36
(2) Non-Institutions
Bodies Corporate	16852708	3.34
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	27333821	5.42
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1710050	0.34
Any Others (Specify)	25378541	5.04
Non Resident Indians	2246260	0.45
Trusts	18985800	3.77
Foreign Nationals	1000	0.00
Clearing Members	2685751	0.53
Unclaimed Suspense A/c	1459730	0.29
Sub Total	71275120	14.14
Total Public shareholding (B)	284767028	56.50
Total (A)+(B)	504024770	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	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.

GENERAL INFORMATION

No. of Employees :

Information Decline by the management

Bankers :

• State Bank of India
• Union Bank of India
• Canara Bank
• State Bank of Mysore
• ICICI Bank Limited
• Axis Bank Limited
• IDBI Bank Limited
• Standard Chartered Bank
• BNP Paribas
• State Bank of Travancore
• Yes Bank Limited
• The Hong Kong and Shanghai Banking Corporation Limited
• Kotak Mahindra Bank Limited
• Deutsche Bank
• Credit Agricole CIB
• DBS Bank Limited
• The Bank of Nova Scotia
• Citibank N.A.
• HDFC Bank Limited
• ING Vysya Bank Limited
• Corporation Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013
LONG TERM BORROWINGS
1,000 - 9.40 % Non-Convertible Debentures of Rs. 1 Million each	1000.000
1,000 - 10.15 % Non-Convertible Debentures of Rs. 1 Million each	1000.000
1,000 - 10.15 % Non-Convertible Debentures of Rs. 1 Million each	1000.000
1,250 - 11.50 % Non-Convertible Debentures of Rs. 1 Million each	833.330
Term Loans
From Banks:
External Commercial borrowings (ECB)	3408.110
Rupee Term Loans	500.000
From Others:
International Finance Corporation - Loan A	1128.430
International Finance Corporation - Loan B Bharat	798.280
Earthmovers Limited (BEML)	494.940
Deferred Payment Liabilities:
Deferred Payment Credit I	199.880
Deferred Payment Credit II	20.710
SHORT TERM BORROWINGS
Buyer’s Credit - Raw Material *	451.430
Banks - Cash Credit (Repayable on Demand) *	49.010
Short Term Loan from banks	0.000
Total	10884.12

(Rs. In Millions)

Secured Loans	31.03.2012
Debentures
1000-9.40% Non-Convertible De4bentures of Rs.1 Million each	1000.000
1,000 - 10.15% Non-Convertible Debentures of Rs. 1 Million each	1000.000
1,000 - 10.15%NonConvertible Debentures of Rs. 1 Million each	1000.000
1,250-11.50 % Non-Convertible Debentures of Rs.1,000,000/- each	1250.000
Term Loans
From Bank
External Commercial borrowings (ECB)	4782.150
Rupee Term Loans	500.000
Buyers Credit - Capex	--
From Others
International Finance Corporation – Loan A	1354.120
International Finance Corporation – Loan B	898.060
Bharat Earthmovers Limited (BEML)	577.430
Deferred Payment Liabilities:
Deferred Payment Credit I	241.360
Deferred Payment Credit II	16.760
Buyer’s Credit – RM	753.080
Banks – Cash Credit (Repayable in Demand)	114.140
Total	13487.100

Notes:

* Cash Credits and Secured Buyers Credit for Raw Materials are secured by a first charge on Raw materials, Workin- Process, Stocks, Stores and Book Debts and by a second charge on the Company’s land at Village Kodakara in Kerala, at Oragadam and Mathur Village in Tamil Nadu and at Head Office in Gurgaon, Haryana together with the Factory Buildings, Plant and Machinery and Equipments, both present and future.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Chennai, Tamilnadu, India
Cost Auditors :	N P Gopalakrishnan and Company Cost Accountants
Subsidiaries :	Apollo (Mauritius) Holdings Private Limited (AMHPL) Apollo (South Africa) Holdings (Pty) Limited (ASHPL) (Subsidiary through AMHPL) Apollo Tyres South Africa (Pty) Limited(ATSA) (Subsidiary through ASHPL) Dunlop Africa Marketing (UK) Limited(DAMUK) (Subsidiary through ATSA) Dunlop Zimbabwe (Private) Limited (DZL) (Subsidiary through DAMUK) Radun Investments (Private) Limited, Zimbabwe (Subsidiary through DAMUK) AFS Mining (Private) Limited, Zimbabwe (Subsidiary through DZL) Apollo Tyres (Cyprus) Private Limited ( ATCPL) (Subsidiary through AMHPL) Apollo Tyres AG, Switzerland (AT AG) (Subsidiary through ATCPL) Apollo Tyres Holdings (Singapore) PTE. Limited, (ATHS) (Subsidiary through AMHPL) Apollo Tyres (LAO) Company Limited (Subsidiary through ATHS) Apollo Tyres (Middle East) FZE, Dubai (ATFZE) (Subsidiary through AMHPL) Apollo Tyres Co -operatief U.A., Netherlands (Apollo Coop) (Subsidiary through AMHPL) 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) Apollo Tyres Global RandD B.V. (Subsidiary through Apollo Coop) Apollo Tyres (Thailand) Limited (Subsidiary through Apollo Coop) Apollo Vredestein B.V., Netherlands (AVBV) (Subsidiary through ATBV)
Subsidiaries of Apollo Vredestein B.V (AVBV) :	Vredestein GmbH Vredestein Norge A.S. Vredestein U.K. Limited N.V. Vredestein S.A. Vredestein GesmbH Vredestein Schweiz A.G. Vredestein Nordic A.B. Apollo Vredestein Srl Vredestein Iberica S.A Vredestein Tyres North America Inc. Vredestein Kft Vredestein R.O Srl Vredestein Polska Sp. Z o.o Vredestein France S.A. Vredestein consulting B.V. Finlo B.V. Vredestein Marketing B.V. Vredestein Marketing Agentur B.V. and Company KG
Joint Ventures :	PanAridus LLC, USA
Companies in which Directors are interested :	Apollo International Limited (AIL) Apollo International Trading LLC, Middle East Encorp E Services Limited UFO Moviez India Limited Landmark Farms and Housing (Private) Limited Sunlife Tradelinks (Private) Limited Travel Tracks Limited Bespoke Tours and Travels Limited Dusk Valley Technologies Limited Classic Auto Tubes Limited PTL Enterprises Limited (PTL) Apollo Finance Limited Artemis Medicare Services Limited Artemis Health Sciences Limited National Tyre Service, Zimbabwe Pressurite (Pty) Limited, South Africa Regent Properties CLS Logistics Private Limited Swaranganga Consultants Private. Limited J and S Systems Corporation, U.K. Sacred Heart Investment Company Private Limited Milers Global Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

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

(C) Equity Shares of Rs. 10 each have been sub-divided into ten equity shares of Rs. 1 each pursuant to the resolution passed by the shareholders at the Annual General Meeting held on July 26, 2007.

(D) Details of Shareholders holding more than 5% of the Paid Up Equity Share Capital of the Company with Voting Rights:

		As at Mar 31, 2013
S.No.	Name of the Shareholder	No. of Shares	%age
1	Neeraj Consultants Limited	42508142	8.43%
2	Apollo Finance Limited	36759650	7.29%
3	Sunrays Properties and Investment Company Private Limited	35725648	7.09%
4	Constructive Finance Private Limited	29630857	5.88%
5	CLSA (Mauritius) Limited	28787736	5.71%
6	ICICI Prudential Life Insurance Company Limited	26665390	5.29%

The rights, preferences and restrictions attached to equity shares of the Company:

(E) The Company has only one class of shares referred to as equity shares having a par value of Rs. 1 each. The holder of equity shares are entitled to one vote per share.

(F) 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	31.03.2013
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	504.090
(b) Reserves & Surplus	22802.390
(c) Money received against share warrants	107.750
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	23414.230
(3) Non-Current Liabilities
(a) long-term borrowings	13383.680
(b) Deferred tax liabilities (Net)	3518.400
(c) Other long term liabilities	124.100
(d) long-term provisions	0.000
Total Non-current Liabilities (3)	17026.180
(4) Current Liabilities
(a) Short term borrowings	5394.150
(b) Trade payables	6000.950
(c) Other current liabilities	4625.630
(d) Short-term provisions	1910.920
Total Current Liabilities (4)	17931.650
TOTAL	58372.060
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	30633.900
(ii) Intangible Assets	79.640
(iii) Capital work-in-progress	2489.730
(iv) Intangible assets under development	0.000
(b) Non-current Investments	6126.950
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	1689.940
(e) Other Non-current assets	0.000
Total Non-Current Assets	41020.160
(2) Current assets
(a) Current investments	0.000
(b) Inventories	11208.260
(c) Trade receivables	2731.360
(d) Cash and cash equivalents	1541.920
(e) Short-term loans and advances	1869.660
(f) Other current assets	0.700
Total Current Assets	17351.900
TOTAL	58372.060

SOURCES OF FUNDS		31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		504.090	504.090
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		19971.950	18451.510
4] (Accumulated Losses)		0.000	0.000
NETWORTH		20476.040	18955.600
LOAN FUNDS
1] Secured Loans		13487.100	8795.700
2] Unsecured Loans		6645.300	8146.700
TOTAL BORROWING		20132.400	16942.400
DEFERRED TAX LIABILITIES		2958.610	2410.710
TOTAL		43567.050	38308.710
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		28506.320	23835.770
Capital work-in-progress		3106.560	3577.750
INVESTMENT		5626.510	5593.470
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS LOANS & ADVANCES
	Inventories	11114.170	11363.340
	Sundry Debtors	3639.130	2042.800
	Cash & Bank Balances	1155.930	1412.630
	Other Current Assets	0.000	0.000
	Loans & Advances	4546.220	4660.800
Total Current Assets		20455.450	19479.570
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	8160.850	7429.090
	Other Current Liabilities	4233.030	4931.740
	Provisions	1733.910	1817.020
Total Current Liabilities		14127.790	14177.850
Net Current Assets		6327.660	5301.720
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		43567.050	38308.710

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	85074.910	81578.750	54904.860
		Other Income	573.770	181.940	485.510
		TOTAL (A)	85648.680	81760.690	55390.370
Less	EXPENSES
		Manufacturing and Other Expenses	--	74681.120	53316.410
		Increase/(Decrease) in Work in Process and Finished Goods	(73.710)	234.510	(3746.580)
		Cost of Materials Consumed	58673.640	--	--
		Purchase of Stock-in-Trade	2538.950	--	--
		Employee Benefits Expense	4268.520	--	--
		Other Expenses	10685.650	--	--
		TOTAL (B)	76093.050	74915.630	49569.830
Less	PROFIT BEFORE INTEREST TAX DEPRECIATION AND AMORTISATION (A-B) (C)		9555.630	6845.060	5601.940
Less	FINANCIAL EXPENSES (D)		2609.730	2413.010	1492.920
	PROFIT BEFORE TAX DEPRECIATION AND AMORTISATION (C-D) (E)		6945.900	4432.050	4109.020
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2200.710	1856.920	1473.540
	PROFIT BEFORE TAX (E-F) (G)		4745.190	2575.130	2635.480
Less	TAX (H)		1619.910	761.800	652.950
	PROFIT AFTER TAX (G-H) (I)		3125.280	1813.330	1982.530
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	6469.050	5891.910
Less	APPROPRIATIONS
		General Reserve	NA	NA	1000.000
		Debenture Redemption Reserve	NA	NA	112.500
		Proposed Dividend	NA	NA	252.010
		Dividend Tax	NA	NA	40.880
	BALANCE CARRIED TO THE B/S		NA	NA	6469.050
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	8091.670	7731.170	4846.780
	TOTAL EARNINGS		8091.670	7731.170	4846.780
	IMPORTS
		Raw Materials	26222.050	27587.600	19253.29
		Stores & Spares	65.460	59.800	42.760
		Capital Goods	1623.420	2403.040	3464.700
	TOTAL IMPORTS		27910.930	30050.440	22760.750
	Earnings Per Share (Rs.)		6.20	3.60	3.93

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.65	2.22	3.58
Net Profit Margin (PBT/Sales)	(%)	5.58	3.16	4.80
Return on Total Assets (PBT/Total Assets}	(%)	9.54	5.26	6.08
Return on Investment (ROI) (PBT/Networth)		0.20	0.13	0.14
Debt Equity Ratio (Total Debt/Networth)		0.80	1.00	0.89
Current Ratio (Current Asset/Current Liability)		0.97	1.45	1.37

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	54,904.860	81,578.750	85,074.910
		48.582	4.286

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	54,904.860	81,578.750	85,074.910
Profit	1,982.530	1,813.330	3,125.280
	3.61%	2.22%	3.67%

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	No
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	Yes
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

LITIGATION DETAILS

KERALA HIGH COURT
CASE STATUS INFORMATION SYSTEM
Case Status         :	PENDING
Status of	INCOME TAX APPEAL   140        of    2013
THE COMMISSIONER OF INCOME TAX                 Vs.                  M/S. APOLLO TYRES LIMITED
Pet's Adv.            :	SRI.P.K.R.MENON,SR.COUNSE
Res's Adv.	SRI.JOSEPH MARKOSE (SR.)
Last Listed On :	Monday, November 11, 2013
Category             :	INCOME TAX APPEAL
CONNECTED APPLICATION (S) No Connected Application.	CONNECTED MATTER (S) No Connected Cases.
Case Updated on:   Wednesday, February 05, 2014

UNSECURED LOAN

(Rs. In Millions)

	As on 31.03.2013
LONG TERM BORROWINGS
2,000 - 10.10 % Non-Convertible Debentures of Rs. 1 Million each	2000.000
1,000 - 9.70 % Non-Convertible Debentures of Rs. 1 Million each	1000.000
SHORT TERM BORROWINGS
Commercial Paper #	3150.000
Buyers Credit - Raw Material	458.760
Packing Credits	1284.950
Total	7893.710

Unsecured Loans	31.03.2012
Commercial Paper	2200.000
Buyer Credit RM	2095.300
Short Terms Loans from banks	2350.000
Total	6645.300

Notes:

# Maximum Amount Outstanding during the year Rs.5850.000 Millions (Rs.9000.000 Millions).

OPERATIONS

Subject witnessed revenue growth to the tune of 5.28% during FY13 despite pressures on the bottom line due to an industry-wide slowdown.

On a standalone basis the Company achieved a net turnover of Rs 85075.000 millions as against Rs 81579.000 millions during the previous financial year. EBIDTA was at Rs 9555.000 millions as compared to Rs 6845.000 millions during the previous financial year. The net profit for the year was Rs 3125.000 millions as against Rs 1813.000 millions in the previous fiscal a growth of almost 72.4%.

The consolidated net turnover of the Company increased to Rs 127946.000 millions during FY13 as compared to Rs 121533.000 millions in FY12. The consolidated EBITDA was Rs 15511.000 millions for FY13 as compared to Rs 11987.000 millions for the previous financial year. On consolidated basis Apollo Tyres earned net profit of Rs 6126.000 millions for FY13 as against Rs 4099.000 millions for the previous financial year a growth of 49.4%.

The amount available for appropriations including surplus from previous year amounted to Rs 9836.000 millions. Surplus of Rs 7887.000 millions has been carried forward to the balance sheet after providing for dividend of Rs 252 million dividend distribution tax of Rs 43.000 millions debenture redemption reserve of Rs 654.000 millions and general reserve of Rs 1000.000 millions

In the year under consideration Apollo Tyres entered new markets launched high performing products for both the passenger and commercial vehicle categories and redesigned its R and D structure with a focus on profitability internal efficiencies and customer delight.

MANAGEMENT DISCUSSIONS AND ANALYSIS

MARKET OVERVIEW

The past fiscal saw the Indian economy growing a shade over 5%, the lowest in a decade. At the same time, the industrial output (IIP) was at about 1 % as compared to 3.4% the previous year. Mining and agriculture were the two sectors that were under the weather inFY13.

The automotive industry, often considered to be a barometer of the usually buoyant Indian economy, was not immune to the global slowdown. In FY13, the Indian automotive industry was beset with weak customer sentiment and high interest rates. Passenger car sales crashed for the first time in 10 years, with the market shrinking by 1%. The sharpest drop was seen in sales of commercial vehicles - multi and heavy - by almost 26%.Off road vehicle market too remained lackadaisical with tractor sales declining by around4%. The light commercial vehicle market managed a weak growth of 1 %.

The Indian tyre industry, in particular, was affected by decreased demand from the OEMs, moderate consumption in the replacement market and muted exports. Price corrections to the tune of about 2% were rolled out, while profitability got a boost with depreciating raw material cost.

In FY13, the European economy continued to be plagued with a difficult domestic situation. The limited success of the austerity programmes translated to higher levels of sovereign debt. Moreover, rising unemployment and lower disposable Income added up to poor consumer sentiments, finally resulting in a decline in demand - posing an even greater challenge to an economic recovery. The governments of two of the biggest economies in Europe, France and Italy, were unable to survive the mandate of the people and lost on populist promises. More recently, the Cyprus situation has again fuelled the fear of adebt crisis.

The overall GDP growth in Euro zone countries in CY12 was less than 1%. Germany continued to provide economic leadership in the region. Euro was volatile against all major currencies with the exchange rate versus USD averaging to 1.29 with a low of 1.21and a high of 1.36 in FY13. New car registrations in Europe dropped by 8% in CY12,compared to the previous year.

The financial year began with a low demand for summer tyres. With winter tyre inventories piling up, customers were not willing to order big numbers. Sales slowed down even further in the second half of CY12, due to the European economic situation. A late winter added to the woes, hugely impacting the sale of winter tyres. The replacement market was about 13% of the consumer tyre market in FY13, with conservative sales in almost all categories. The demand contracted even more sharply in southern countries as compared to the western and eastern European countries.

Raw material prices remained at a high in the first half of the fiscal, declining in the latter part of the year. However, gains on natural rubber prices were moderated by oil based raw material.

At the South African Operations, the low growth in the economy, in FY13, could be attributed to the crisis that hit Europe, pressures on the mining industry and the country’s relatively high unemployment rate. The country's GDP is expected to be at 2.8%in FY13. The Consumer Price Index was at 5.9%, driven by food prices amongst others.

In August 2012, the South African government launched the National Development Plan2030 with a view to eliminate poverty and reduce inequality by expanding economic opportunity for all. According to the World Economic Forum's Global Competiveness Survey published in September 2012, South Africa was rated first for regulation of securities exchanges, second for soundness of banks, second for availability of financial services and third for financing through the local equity market.

The local car market grew a bit more than the anticipated 9%. This is likely to bode well for the replacement market in the years to come. The light commercial vehicle category showed a growth of 6.7% in the past fiscal, while the heavy commercial vehicle market grew by 3.1%. Although the vehicle market registered growth, it was not enough tohave a significant impact on the replacement market

The excessive imports have woken up the South African tyre industry to the need of being competitive and maintaining an edge. The South African Operations too bore the bruntof the imports as it lost some market share in the commercial vehicle category. To address the situation, the local tyre manufacturing industry implemented a system of assisting the South African Revenue Services (SARS) in highlighting potential cases of under invoicing of imported tyres, leading to a reduction in the number of cheaper tyres being dumped into the market. The weakening of the Rand against the US dollar during the last quarter of the financial year also hindered the extent of cheap imports flooding the market.

The Integrated Waste Tyre Management Plan by the Recycling and Development Initiative of South Africa (REDISA) obligates local tyre manufacturers and importers of tyres to subscribe to the plan and pay a levy of R2.30 + VAT on every kilogram of new rubber tyre. The introduction of this plan has led to majority of the tyre manufacturers and importers increasing their prices in order to fund the fee.

On the raw material front, in FY13, crude stabilised and the demand for inputs declined during the latter part of the year. Natural rubber, the largest contributor to tyre costs, declined over this period against market forecasts of a spike, as tyre producers were forecast to increase demand.

SEGMENT WISE PERFORMANCE

For the company's Indian Operations, FY13 was a year of change. The commercial vehicle segment - which traditionally has contributed to the bulk of the revenue - saw a shift. The average sales volumes for the truck-bus cross ply category shrank by about 4%.Similarly, the light truck-bus cross ply tyre category's average sales volume dipped by about 5% as compared to the previous fiscal.

The radial categories did well, with sales picking up marginally in the passenger vehicle category and by about 141 % in light-truck (small commercial vehicle) radial tyre category. There is a clear indication of radialisation taking place quicker than expected, Largely due to OEM acceptance and partially due to growing consumer awareness.

On the other hand, while off road tyre sales dipped, the industrial tyres category sawa massive sales volume growth of about 103% in FY13.

The company, as always, brought forth a slew of sales and marketing initiatives, inFY13, aimed at creating customer delight. To begin with, the company launched concept retail outlet in Dubai, UAE, the first ever Apollo Super Zone outside India, an important step in the regional growth strategy.

On the new product development front, the company introduced products across different categories. In December 2012, Apollo launched XTRAX 40.00-57, the largest tyre produced in India, at the 11th International Mining and Machinery Exhibition (IMME) 2012 in Kolkata, India. Each of these tyres weigh 3500 kg and has a total height of 11.7 feet To boost consumer sentiment in the truck-bus cross ply segment, the company introduced a new Steer Axle tyre 'XMR', in March 2013. The tyre is designed for superior mileage and structural durability to deliver best cost of ownership in terms of total mileage. In the same month, Mahindra and Mahindra launched its 1st electric car e2o, with Apollo Amazer 3G as the standard fitment tyre. This specially developed tyre resulted from in-depth research by the Apollo RandD team to meet the specifications of low rolling resistance, which translated into better mileage with lesser power being drawn from the battery.

In Europe, despite significant contraction in the market, Apollo Vredestein BV managed to achieve a stable top line. In terms of volume, passenger vehicle tyre sales declined by5%. However, the company's market share went up amidst a shrinking market. Furthermore, amore customer-centric sales mix resulted in a higher average sales price. The company largely continued to be a replacement market player and in FY13, 79% of the revenue came from the said segment, while original equipment manufacturers accounted for the remaining21 %. Passenger vehicle segment constituted 82% of the total revenue and agriculture tyres contributed another 14%.

The past fiscal also saw a host of new product launches under both Apollo andVredestein, as well as new marketing and research initiatives by the company.

In April 2012, the company presented its Ultimate High Performance tyre to visitors at Top Marques Monaco, fitted on the Concept One electric supercar developed by Rimac Automobili. In August 2012, the company Introduced its best winter soft tyre-the Nord-Trac2 specifically designed for extreme Nordic winter weather, being safe and reliable throughout the winter season - in Stockholm.

In March 2013, the company launched two new high performing passenger vehicle tyres at the Geneva Motor Show -the Apollo Alnac 4G and Vredestein Ultrac Vorti R. Apollo Alnac 4Gis specially designed for compact and mid-size car segments, which will be available in V and H speed ratings. Vredestein Ultrac Vorti R is an ultra high performance tyre from Apollo Vredestein with an increased focus on grip and spottiness, all within a distinctivesize range, developed in close cooperation with the Italian design house, Giugiaro. Good test results for both Aspire 4G and Alnac 4G gave a boost to brand Apollo in the last quarter of FY13.

Moreover, the Vredestein summer tyres also earned good results in the year under consideration. In the agricultural tyres category, a complete new range of grass and lawn tyres was introduced at the SIMA show in Paris. The Apollo industrial tyres were also successfully unveiled here.

In FY13, Apollo Tyres established a global Research and Development structure with a view to synergise resources across operations for critical product segments.

Following this, the company opened its global R and D Centre in the Netherlands for the development and testing of passenger vehicle tyres, since Europe is considered to be the toughest market with regards to regulations and customer expectations.

In May 2012, Apollo Vredestein also began researching alternatives to natural rubber. The continuous search for sustainable materials resulted in the development of two prototype tyres made out of rubber of the Dandelion, This was the result of the EU Pearls project In which the company participated as the sole tyre manufacturer,

For South Africa, bulk of the revenues came in from the replacement market, while exports also contributed significantly

With the Introduction of brand Apollo products, the South African Operations were able to venture into segments where it had Inadequate coverage previously and this has paid dividends. Similarly, introduction of brand Vredeste in tyres has afforded Apollo Tyres South Africa an opportunity to bring a premium Ultra High Performance (UHP) tyre into the African market

OUTLOOK

With the Indian economy showing a moderate growth trend, slow or no growth is expected in the automotive industry. As per the Society of Indian Automobile Manufacturers, the Indian automotive Industry is expected to grow about 8% In FY14. Similarly the Indian tyreindustry is estimated to show moderate growth. Raw material prices are expected to be stable and could move up a little during the year.

As expected, the slowdown In the Indian economy has resulted in lower capacityutilisation for all the tyre players and some have even begun reconsidering their growth projects. The situation is likely to continue with slower ramp up of capacities across the industry.

In terms of raw materials, the global tyre Industry's focus is likely to be inefficient inventory management, vendor relationship management, procurement from low cost sources and raw material substitution. In FY14, raw material prices are expected to exhibit a slow upward trend.

In Europe, most economists are forecasting zero to low growth, within the European Union, 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 European Central Bank could help in regaining Investor confidence and assist economic stability.

Outlook for Apollo Vredestein B V Is largely positive, even though it is expected that market growth In Europe may not take place. For brand Vredestein, key to growth will be new product development and entry in new markets. Premium products under brand Vredesteinare slated to be introduced in growth markets like India. Brand Apollo, which is now wellpositioned in Europe, will continue to work towards establishing a larger footprint.

In South Africa, domestic economic growth is constrained and local challenges remain. There was improvement in performance in FY13 and the company will continue to make efforts to expand the Apollo and Vredestein brands in the region. New markets are being explored to Increase capacity utilisation even as efforts to cut costs are being rolled out.

Apollo Tyres Limited, during the course of its sustainability journey in the coming year, will also work towards improving not only its financial performance, but also its performance across various social and environment driven parameters. The global trend of disclosure, be It South Africa's King 3 guidelines or Europe's social-environmental norms, is being driven by legislative compliance and investor interest

The World Economic Forum's Global Risk Report 2012 has identified 5 major risk categories -economic, environment, social, geopolitical and technological. It goes on to further define these risks in terms of livelihood and impact The company has taken cognizance of these risks and is working towards mitigation of the identified risks across all its operations.

Within the domain of sustainability, there are certain issues that are garnering the attention of corporates across the globe and are becoming business imperatives. These include, but are not limited to, corporate, social and environmental governance, climate change, workplace diversity, emissions, sustainable supply chain, consumption style and human rights. Apollo Tyres has been studying these developments and has created a charter to manage these issues. The company has also undertaken several initiatives to address the said issues, discussed throughout this annual report.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2013	31.03.2012
Sales Tax	204.940	153.370
Claims against the Company not acknowledged as debts – Employee Related	53.950	26.970
Others	27.540	19.830
Provision of Security (Bank Deposits pledged with a Bank against which working capital loan has been availed by Apollo Finance Limited, an Associate Company)	68.140	63.500
Excise Duty*	1381.350	253.120

Notes:

* Excludes demand of Rs. 532.120 Millions (Rs.532.120 Millions) 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.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2013

(Rs. In Millions)

Sr. No.	Particular	Quarter Ended		Nine months Ended
		31.12.2013 (Unaudited)	30.09.2013 (Unaudited)	31.12.2013 (Unaudited)
1	Net Sales/Income from Operations	21435.610	21068.480	64151.150
	Other operating income	842.000		842.000
	Total Income	22277.610	21068.480	64993.150
2	Expenditure
	Cost of materials consumed	14320.910	14555.960	43512.170
	Purchase of stock in trade	608.360	703.270	1954.740
	Changes in inventories of finished goods, work in progress and stock in trade	(437.500)	(1005.410)	(1796.100)
	Employee benefits expenses	1254.540	1144.920	3545.660
	Depreciation and amortization expenses	649.220	609.440	1852363.000
	Other expenses	3460.020	2939.270	9434.680
	Total Expenses	19855.550	18947.450	58503.780
3	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	2422.060	2121.030	6489.370
4	Other Income	421.200	158.120	659.270
5	Profit Before Interest and Exceptional Items (3+4)	2843.260	2279.150	7148.640
6	Interest	634.570	614.910	1882.430
7	Profit After Interest but before Exceptional Items (5-6)	2208.690	1664.240	5266.210
8	Exceptional Items	548.000	50.000	598.000
9	Profit from Ordinary Activities before Tax (7+8)	1660.690	1614.240	4668.210
10	Tax Expense	557.660	522.990	1538.260
11	Net Profit from Ordinary Activities after Tax (9-10)	1103.030	1091.250	3129.950
12	Extraordinary Item (net of expense)
13	Net Profit for the period (11-12)	1103.030	1091.250	3129.950
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	2.19	2.17	6.21
	b) Basic and diluted EPS after extraordinary items	2.19	2.17	6.21
17	Public Shareholding
	-Number of Shares	284767028	284767028	284767028
	- Percentage of Shareholding	56.50%	56.50%	56.50%
18	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	37343267	38255300	37343267
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	17.03%	17.45%	17.03%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	7.41%	7.59%	7.41%
	b) Non Encumbered
	- Number of Shares	181914475	181002442	181914475
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	82.97%	82.55%	82.97%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	36.09%	35.91%	36.09%

Particulars	Quarter Ended 31.12.2013
Pending at the beginning of the quarter	1
Received during the quarter	9
Disposed of during the quarter	10
Remaining unresolved at the end of the quarter	Nil

Notes:

The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on February 12, 2014. The stand-alone results of the Company have undergone limited review by the Statutory Auditors.

The Company's operation comprises of one business segment - Automobile Tyres, Automobile Tubes and Automobile Flaps.

Exceptional item for the nine month period ended December 31, 2013 represents expenses incurred in connection with the proposed acquisition of Cooper Tire & Rubber Company (Cooper) which was terminated by Cooper.

Other Operating Income represents incentive related to Output VAT and CST refund from the Government of Tamil Nadu (GoTN) as part of the Structure Package of Assistance as mentioned in the supplementary MOD signed by the Company with GoTN dated January 11, 2011 in connection with its investment at Oragadam near Chennai.

Previous period's figures have been regrouped / reclassified wherever necessary to correspond with the current period's classification / disclosure.

FIXED ASSETS

TANGIBLE ASSETS

• Land
• Buildings
• Plant and Machinery
• Electrical Installation
• Furniture and Fixtures
• Office Equipments
• Vehicles

INTANGIBLE ASSETS:

• Computer Software

AS PER WEBSITE DETAILS

PRESS RELEASE

THE DESIGNER TYRES DEBUT IN INDIA

December 5, 2013

Apollo Tyres introduces its premium European brand, Vredestein to cater to high-end cars and SUVs

Strengthening its product offering further in the Indian market, Apollo Tyres today announced the introduction of its premium European brand, Vredestein into India. Today’s announcement will be followed by a complete adrenalin rushing ‘Driving Experience’ tomorrow for Vredestein tyres, in association with Audi India, at the F1 Circuit in Greater Noida, outside of New Delhi.

Vredestein brand, known for its designer and high quality tyres, is entering India with tyre sizes of 15” to 20”, primarily catering to the luxury coupes, premium luxury sedans and SUVs, with speeds upto 240 to 300 kph (speed rating of ‘V’ to ‘Y’). This, the company says, would complement the existing product range from Apollo Tyres in the passenger vehicle tyres space.

The tyres being introduced currently, under the Vredestein brand, are Ultrac Sessanta, Ultrac SUV Sessanta, Ultrac Cento and Sportrac 5, all with the signature touch of renowned automobile designer, Giorgetto Giugiaro. Vredestein’s ongoing commitment to excellence has also been ratified by some of the renowned German, Austrian, Dutch and Swiss automotive and touring publications in the recent past, who gave high ratings to these tyres.

Commenting on the introduction of Vredestein brand into India, Onkar S Kanwar, Chairman, Apollo Tyres Ltd, said “India has been and will continue to be a very important market for us. India will benefit immensely from the globalisation efforts of the company. Our investments in R and D centres of excellence, positioning of the brand and other marketing initiatives will endear us more to the discerning Indian customers. A major differentiator for this 100 year old brand, Vredestein, which we are introducing today for the Indian customers, is its premium styling and ultra-high performance, the two most important factors considered by owners of luxury cars, before buying a tyre.”

Vredestein tyres will be distributed through a hand-picked set of Business Partners in India, mostly in the tier I and tier II cities. These premium tyres would be sold through multi-branded outlets, including existing Apollo Zones. As a new entrant into India, Vredestein has a distinct advantage of access to the robust network of Apollo Tyres, its trained sales force and the promise of 24 hour service.

APOLLO TYRES CLOSES AFRICAN DEAL WITH SUMITOMO RUBBER INDUSTRIES

Move aimed at consolidating on two global brands -- Apollo and Vredestein

Apollo Tyres today announced the closure of the transaction with Sumitomo Rubber Industries (SRI), where in SRI takes over Apollo Tyres South Africa (ATSA) including the Ladysmith passenger car tyre plant, and the Dunlop brand rights that Apollo had in 32 countries of Africa, for US$ 60 million. Apollo retains the Durban plant which manufactures Truck & Bus Radial (TBR) tyres and Off Highway tyres (OHT) used in the mining and construction industries.

Post this transaction, Apollo Tyres will continue to sell Apollo, Vredestein and Regal branded tyres in Africa, and at the same time focus on creating and strengthening its sales and distribution network across the continent. As agreed, both companies will also undertake contract manufacturing of their respective brands at each other’s facility to have locally manufactured products available for the market.

Commenting on the closure of this transaction with Sumitomo Rubber Industries, Onkar S Kanwar, Chairman, Apollo Tyres Limited said, “It has been a very eventful journey for us in Africa, since our entry in 2006 with the acquisition of Dunlop Tires International. This has given us a very sound understanding of the growing African market and helped us develop the market for our products in Latin America as well. Using South Africa as the base, we will now focus on brands where we own global rights, which we have already been selling in South Africa for the past few years, for the African and Latin American markets.”

The employees, retained by Apollo in South Africa, post this transaction closure, will be working for the newly formed company, Apollo Durban (Pty) Limited No jobs have been lost in this transaction between the two entities -- Apollo and SRI.

Apollo Tyres announced this transaction with Sumitomo Rubber Industries on May 29, 2013.

October 09, 2013

APOLLO TYRES APPOINTS THE BROOKLYN BROTHERS AS ITS GLOBAL CREATIVE PARTNER

Apollo Tyres, a leading tyre major, today announced the appointment of The Brooklyn Brothers as its global creative agency. The agency’s London office will service the account, which it won after a multi-agency pitch process. The new creative partners would be tasked to help build the global Apollo brand using the print, electronic and digital mediums.

The Brooklyn Brothers will also work on the recently announced three-year partnership deal with Manchester United Football Club (MUFC). While, Apollo became the Club's official Tyre Partner in the UK and India, it will leverage this high profile partnership with Manchester United to raise awareness of its brand among potential customers, business partners and consumer audiences in India and the UK. 

Commenting on this association with The Brooklyn Brothers, Marco Paracciani, Chief Marketing Officer, Apollo Tyres Limited said “At Apollo, we were looking at having an agency on board who not only understands the automotive business, but is also in a position to work closely with us on this new phase of growth for Apollo Tyres. Their unique methodology -- ‘Invite, Activate, Amplify’-- along with their community-focused approach on our association with Manchester United Football Club, led to their selection over others.” 

Apollo Tyres has recently set-up a Global Marketing Office in London, which is responsible for global product strategy, marketing communications and product mix management. 

On winning the Apollo Tyres account, George Bryant, Planning Partner, The Brooklyn Brothers commented, "Apollo Tyres is a highly ambitious company which continues to set new benchmarks in this dynamic global industry. Together, we share a great passion for football and the value of 'people power' and we're really looking forward to working with Apollo Tyres and help them reach out to Manchester United’s 46 million followers in the UK and India. " 

About The Brooklyn Brothers: 

The Brooklyn Brothers are an independent creative agency with offices in New York, London, LA, Shanghai and Sao Paulo.  The agency was set-up to respond to today’s new communications challenges and to get the clients’ brands talked about by a new, empowered, digitally literate consumer.  Their clientele includes Land Rover, Jaguar. Virgin, Apple, Tate, BBC Worldwide, New Era, Rockstar Games and the New York Rangers.   

The Brooklyn Brothers was named European Effectiveness Agency of the Year 2011 and recently picked up a Gold Effectiveness for this year and two Bronze Lions at Cannes for their ‘Inspired by Iceland’ campaign. 

May 29, 2013

APOLLO TYRES AND SUMITOMO RUBBER INDUSTRIES STRIKE DEAL IN AFRICA

Apollo Tyres today announced a transaction with Sumitomo Rubber Industries (SRI), by which SRI takes over Apollo Tyres South Africa (ATSA) including the Ladysmith passenger car tyre plant. Apollo will retain the Durban plant which manufactures Truck and Bus Radial (TBR) tyres and Off Highway tyres (OHT) used in the mining and construction industries. 

Speaking on this development, Onkar S Kanwar, Chairman, Apollo Tyres Limited said, “This partnership with SRI is a win-win situation for both organisations. SRI gets a manufacturing location on the continent and control over the Dunlop brand which they also use in many other countries across the world. Apollo retains one plant in South Africa and has the ability to develop further the markets for its global brands -- Apollo and Vredestein.” 

For a consideration of US$ 60 million, SRI will acquire ATSA, including the Ladysmith plant. All employees of the company, other than those in the Durban plant, will continue with ATSA. Apollo will retain the Durban plant and all employees attached to it. It may be noted that the two entities have made sure that there are no jobs lost in this entire process. 

Apollo Tyres will continue to sell the Apollo, Vredestein and Regal brand tyres in Africa while focusing on creating and strengthening its own sales and distribution network across the continent. Both companies will also undertake contract manufacturing of their respective brands at each other’s facility to have locally manufactured products available for the market. 

Commenting further, Mr Kanwar said, “While we have 2 global brands -- Apollo and Vredestein -- which we are looking at expanding across the world, we had the brand rights for selling Dunlop brand only in 32 countries of Africa. We have retained the manufacturing facility in Durban, as we would like to increase the presence of Apollo and Vredestein branded tyres in Africa, which we have already been selling in South Africa for the past few years.” 

Apollo Tyres acquired Durban, South Africa headquartered Dunlop Tyres International (later renamed Apollo Tyres South Africa Pty Limited) in 2006.

June 12, 2013

APOLLO TYRES TO ACQUIRE COOPER TIRE AND RUBBER COMPANY

Combination Creates World’s Seventh-Largest Tyre Company with Over Rs 350000.000 Millions 

GURGAON, India and FINDLAY, Ohio, USA – June 12, 2013 – Apollo Tyres Limited (NSE: Apollo TYR.NS) and Cooper Tire and Rubber Company (NYSE: CTB) today announced the execution of a definitive merger agreement under which a wholly-owned subsidiary of Apollo will acquire Cooper in an all-cash transaction valued at approximately Rs 145000.000 Millions (US$2.5bn**). Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Cooper stockholders will receive $35.00 per share in cash.  The transaction represents a 40% premium to Cooper’s 30-day volume-weighted average price.   

This strategic combination will bring together two companies with highly complementary brands, geographic presence, and technological expertise to create a global leader in tire manufacturing and distribution.  Apollo, founded in 1972, has an international reputation for high performance tires across a portfolio of well-known premium and mid-tier brands, including the flagship Apollo brand and Vredestein.  Cooper, the 11th-largest tire company in the world by revenue, was founded in 1914 and today supplies premium and mid-tier tires worldwide through renowned brands such as Cooper, Master craft, Starfire, Chengshan, Road master and Avon. 

The combined company will be the seventh-largest tire company in the world and will have a strong presence in high-growth end-markets across four continents.  With a combined $6.6 billion in total sales in 2012, the combined company will have a full range of brands and greater ability to satisfy customer needs worldwide.  

The combination is expected to deliver value creation benefits of approximately Rs 465-700 crores (US$80-120 million) per annum at the EBITDA level. These ongoing benefits are expected to be fully achieved after three years and derived from operating scale, sourcing benefits, technology, product optimization, and manufacturing improvements. The transaction is expected to be immediately accretive to Apollo’s earnings. 

Onkar S Kanwar, Chairman, Apollo Tyres Limited, stated, “This transformational transaction provides an unprecedented opportunity to serve customers across a host of geographies in both developed and fast-growing emerging markets around the world.  Cooper is one of the most respected names in the tire industry, with an extensive distribution network and manufacturing infrastructure, and a particularly robust presence in North America and China.  The combined company will be uniquely positioned to address large, established markets, such as the United States and the European Union, as well as the fast-growing markets of India, China, Africa, and Latin America where there is significant potential for further growth.  Our combined portfolio of brands and products will be amongst the most comprehensive in the industry.” 

Roy Armes, Cooper’s Chairman, Chief Executive Officer and President, said, “This is a compelling transaction that is in the best interest of Cooper’s stockholders and offers attractive benefits to our customers and employees.  We have watched Apollo’s successful transformation into a major global tire group, and have a great deal of respect for the company and its leadership.  Together, our two organizations have almost no geographic overlap and significant opportunities for growth.  We share a commitment to innovation, quality, and customer service, as well as to the core values of safety, environmental sustainability, the development of our people and giving back to our communities.  We look forward to working together to drive continued growth in a dynamic global tire business where increased scale and expanded manufacturing footprint help to ensure long-term success.” 

Neeraj Kanwar, Vice Chairman and Managing Director, Apollo Tyres Limited, said, “The combined company’s diversified product offering will serve the passenger car, light and heavy truck, farm, and off-the-road vehicle segments.  Our extended global reach will create opportunities to provide our customers and distributors around the world with increased access to the quality tires they have come to expect from each of our respective brands.  Together, we will have a significant presence in each of the three largest automotive markets in the world, namely the United States, Europe and China.” 

Neeraj Kanwar added, “Importantly, both Apollo and Cooper have built strong reputations on the strength of their people, and this transaction will maintain the networks and workforces in each organization’s respective regions, while creating new opportunities in others. We are excited by the possibilities created by our partnership and look forward to welcoming Cooper’s employees to the Apollo family.”   

The close of the transaction, assuming timely regulatory approvals and other customary closing conditions, as well as approval by Cooper’s stockholders, is expected to take place within the second half of 2013.  Following the close, Cooper will become a privately held company and its common stock will no longer be traded on the New York Stock Exchange.  It is expected that Cooper will continue to be led by members of its current management team and will continue to operate out of its facilities located around the world.  Cooper will continue to recognize the labor unions and honor the terms of collective bargaining agreements presently in effect while generally maintaining compensation and benefit levels for non-union employees. 

Morgan Stanley and Company LLC and Deutsche Bank Securities Inc. served as financial advisors and investment firm Greater Pacific Capital acted as strategic and financial advisor to Apollo. 

Standard Chartered is the sole provider of transaction financing at the Apollo Tyres level and is also the structuring advisor.  Morgan Stanley Senior Funding, Inc., Deutsche Bank Securities Inc., Standard Chartered and Goldman Sachs Bank USA are joint lead arrangers providing committed funding to Apollo’s acquisition subsidiary. 

Sullivan and Cromwell LLP and Amarchand and Mangaldas and Suresh A Shroff and Co served as legal advisors to Apollo.  BofA Merrill Lynch served as financial advisor and Jones Day served as legal advisor to Cooper.

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 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 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. 60.34
UK Pound	1	Rs. 101.45
Euro	1	Rs. 83.31

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	KAR
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
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	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

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	--

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.