REPORT ON APOLLO TYRES

BY ARUN PRASAD R(11AD07) BHUVAN NEHRU N(11AD08

COMPANY INFO
Company Facts - Apollo Tyres Registered Address 6th Cherupushpam Kochi Kerala 682031 Tel: 0484-2381902 Fax: 0484-2370351 Email: investors@apollotyres.com Website: http://www.apollotyres.com Group: Raunaq Management - Apollo Tyres Name Onkar S Kanwar Sunam Sarkar A K Purwar M R B Punja Robert Steinmetz S Narayan Alkesh Kumar Sharma Name Neeraj Kanwar U S Oberoi K Jacob Thomas Nimesh N Kampani Shardul S Shroff V P Joy Designation Chairman and Managing director Wholetime Director & CFO Director Director Director Director Nominee Director Designation Vice Chairman & Mng.Director Whole Time Director Director Director Director Nominee Director Floor, Road

Building,,Shanmugham

0484-2381903

Group

Directors Report Year End : Mar '11

The Directors have pleasure in presenting the Annual Report along with the audited statement of accounts of your Company for the financial year ended March 31, 2011. FINANCIAL PERFORMANCE Rs Million Year Ended Year Ended

31.03.2011 31.03.2010 31.03.2011 31.03.2010 Standalone Net Sales Other Income Operating Profit (EBIDTA) Less: Depreciation Interest Provision for Tax Net profit before Exceptional Items Add: Exceptional Items Less: Share of loss of associates/ minority interest Net Profit OPERATIONS On a standalone basis, your Company registered a net turnover of Rs 54,905 million as against Rs 50,366 million during the previous financial year, a growth of 9%. The Company registered EBIDTA of Rs 5,603 million as compared to Rs 7,949 million during the previous financial year. The net profit for the year under review was Rs 1,983 million, as against Rs 4,150 million in the previous fiscal. The steep hike in raw material prices coupled with production loss, due to labour problems, at one of the units had an adverse impact on the profitability of the Company. The consolidated net turnover of the Company as a group has increased to Rs 88,677 million during FY 2010-11 as compared to Rs 81,207 million during the previous financial year, registering a growth of 9.2 %. The consolidated EBIDTA was Rs 10,042 million for FY 2010-11 as compared to Rs 11,963 million for the previous financial year. On consolidated basis, the Company earned net profit of Rs 4,402 million for FY 2010-11 as against Rs 6,534 million for the previous financial year. The amount available for appropriations, including surplus from previous year amounted to Rs 7,874 million. Surplus of Rs 6,469 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 112 million and general reserve of Rs 1,000 million. 1,983 4,150 1,983 4,150 4,408 5,660 874 5,603 1,474 739 653 7,949 1,228 1,852 1,063 10,042 2,719 1,154 2,607 11,963 2,542 54,905 267 50,366 112 Consolidated 88,677 263 81,207 214

1,493

1,832

4,402

6,534

Industry despite challenging market conditions and production loss caused due to labour problem, at the Perambra unit in India, due to lock out from June 11, 2010 to August 21, 2010. In May 2010 there was also a 2-week strike at the ports in South Africa, affecting the supply of raw materials to the Durban and Ladysmith facilities. In September 2010 your Companys South Africa Operations were again brought to a standstill by an industry-wide labour strike, which was resolved after prolonged negotiations. PRODUCTION During the year under review, your Companys production has shown a consolidated growth of 2.8%, in production tonnage, by generating an output of 438,524 metric tonnes (MT) as against 426,641 MT in the previous year. RAW MATERIALS During the year under review, raw material dynamics in the tyre industry have undergone a significant change, primarily from the perspective of key raw material prices, which have risen beyond expectations. Robust demand from China and India, along with resurgence of output in the industrialised countries, saw prices of natural rubber peaking to US$ 6/kg in the international market. The supply of natural rubber was also adversely impacted in the year due to climatic conditions in rubber growing regions. The domestic rubber prices reached an all time high of Rs 241/kg during the year, registering an increase of almost 70% over the prices in the last fiscal. Crude oil prices also crossed the US$ 100/barrel level on geo-political factors and strong demand growth from major economies across the globe. Crude based items, namely, synthetic rubber, nylon tyre cord fabric, polyester fabric, carbon black and rubber chemicals also showed a rising trend during the course of the year. Moreover, anti-dumping duty on nylon tyre cord fabric, carbon black and rubber chemicals continued. Considering that the global GDP is projected to grow at 4% in 2011-12, fuelling the demand for commodities and base metals, prices of major commodities such as natural rubber, crude oil and steel are likely to remain bullish. Despite a challenging environment with respect to raw materials, your Company strives to remain globally and regionally attractive to customers and investors by continuing to focus on working capital management, alternative energy source development, new vendor development and nurturing existing relationships with business partners. These strategic initiatives are expected to fuel your Companys growth across geographies. DIVIDEND The Directors are pleased to recommend a dividend of Re 0.50 (50%) per share on Equity Share Capital of the Company for the FY 201011 for your approval. There will be no tax deduction at source on dividend payments, but your Company will have to bear tax on dividend @ 16.22%, inclusive of surcharge. The dividend, if approved, shall be payable to the Shareholders registered in the books of the Company and to the beneficial owners as per details furnished by the depositories, determined with reference to the book closure from July 28, 2011 to August 11, 2011 (both days inclusive). MARKETING FY 2010-11 was a landmark year for Apollo Tyres Ltd. For starters, your Company introduced its flagship Apollo brand in the European market at, what is arguably the worlds largest tyre exposition, Reifen in Essen, Germany. Later in the year, coinciding with the opening of the International Geneva Motor Show or Salon International de lAuto, Apollo launched its biggest ever mega billboard campaign for brand Vredestein. During March 2011, the billboards were on view in 37 major European cities placed in prime high traffic locations. In India, Apollo launched a high-voltage passenger car radial advertising campaign titled Road Is A Friend, which was aided by an aggressive consumer promotion scheme called Exchange For A Tubeless Future to promote the use of tubeless PCR tyres. However, the focus was on below-the-line promotional activities, with individual and fleet customers, through initiatives like Apollo ET ZigWheels Awards for recognising excellence amongst automakers and Apollo Safe Drive which promotes safe driving and tyre maintenance. Brand Dunlop, sold in 32 African countries, emerged as the # 1 brand in the tyre category, in a survey commissioned by Rapport and City Press newspapers on South Africas iconic brands. This was an independent survey measuring the usage of more than 8,000 brands under 19 different product categories by South African consumers. The South Africa Operations took forward their Driven By Precision position for brand Dunlop, by launching a new advertisement campaign. The new communication positions the Dunlop Zones exclusive retail outlets as the ultimate destination for a premium tyre fitment experience and outstanding service from committed professionals and experts.

EXPORTS Exports of passenger car radials, despite a demand slump, grew marginally over the previous years sales volumes. Your Company continues to be the largest exporter of passenger car radials from India with a share of over 75% vis--vis exports by domestic industry. Truck-bus cross ply sales volumes fared as per expectations; though price undercutting by competition and increasing preference for radial tyres posed to be a challenge. The year also witnessed the successful pilot launch of Apollos truck-bus radial tyres in select markets of Asia, Africa and the Middle East this category shows tremendous potential for growth in the coming years. Apollos European Operations largely focus on the domestic replacement market and there is not much by way of exports. On the other hand, your Companys South African Operations saw a healthy growth in exports with almost 23.7% of the current financial years revenue coming from this segment, compared to 17.5% in the previous year. EXPANSION PROGRAMME AND FUTURE OUTLOOK The greenfield project of the Company in Chennai, is progressing as per schedule. At present the facility is producing 7,500 passenger car radial (PCR) tyres and 2,000 truck-bus radial (TBR) tyres per day. It would reach its planned capacity of 16,000 PCR tyres per day and 6,000 TBR tyres per day by the last quarter of the current financial year. The unit is supplying to major OEMs like Hyundai, Tata Motors, Ashok Leyland and Mahindra, all of whom have reviewed the product performance favourably. Supplies to other major OEMs like Ford, Nissan and Maruti Suzuki is expected to commence shortly. During the year, the cross ply light truck tyre production was enhanced by 1000 tyres per day to its current 2030 tyres per day, at the Perambra facility. Similarly, an increase in production was also undertaken at the Limda unit 1581 to 2151 tyres per day for light truck cross ply and 351 to 651 tyres per day for rear tractor cross ply; resulting in the total tonnage production going up by approximately 36 MT/day. On the radial front, the PCR and light truck radial (LTR) production at the Limda facility was upped to around 18,000 tyres per day and 2,000 tyres per day, respectively, taking the total radial tonnage production at the said facility to approximately 165 MT/day. The Companys units in South Africa are in the process of further production building from 10,000 PCR tyres per day to 13,000 PCR tyres per day at Ladysmith and from 1000 TBR tyres per day to 1200 TBR tyres per day at Durban. The said production increase and modernisation and quality improvement project includes installation of a new calender line, fischer cutter, triplex extruder, bead apexing and high speed PCR tyre building machines. The total cost of such an expansion in South Africa would be around Rand 275 million (equivalent to Rs 1820 million) and the same is expected to be completed by September 2011. However, the total production increase would be realised only by the last quarter of the current financial year. The European Operations expanded PCR capacity from 5.2 million to 6.4 million tyres per annum, with an investment of 6 million (equivalent to Rs 380 million). The increased capacity is already under utilisation since the last quarter of the year, allowing the Company to sell higher volumes in the European market. MANAGEMENT DISCUSSION AND ANALYSIS REPORT As required by Clause 49 of the Listing Agreement with the Stock Exchanges, a detailed Management Discussion and Analysis Report is presented in a separate section forming part of the Annual Report. SUBSIDIARY COMPANIES As on March 31, 2011, your Company had 35 subsidiaries including indirect subsidiaries. During the year, the following changes have taken place in subsidiary companies: During the year under review, Apollo (Mauritius) Holdings Pvt. Ltd, your Companys subsidiary has incorporated Apollo Tyres Holdings (Singapore) Pte. Ltd w.e.f. September 8, 2010 and Apollo Tyres (Middle East) FZE w.e.f. January 2, 2011 as its wholly owned subsidiaries. The main activity of the Middle East Company will be warehousing and trading of tyres manufactured at various locations in India, South Africa and the Netherlands to cater to customers in Middle Eastern and African countries. Apollo Tyres Holdings (Singapore) Pte. Ltd acquired 95% shareholding in K P Construction and Forestry Development Co. Ltd (name being changed to Apollo Tyres (Lao) Company Ltd) w.e.f. February 15, 2011 which would be engaged in business of natural rubber plantations.

Vredestein Kft your Companys step subsidiary in Hungary through Apollo Vredestein B V formed a wholly owned subsidiary of Vredestein Ro SRL w.e.f. August 18, 2010. Apollo Tyres (Pte) Ltd ceased to be the subsidiary Company of Apollo (Mauritius) Holdings Pvt. Ltd w.e.f. June 4, 2010. The Ministry of Corporate Affairs vide its letter No: 5/12/2007-CL-III dated February 8, 2011, has granted a general exemption to the companies under section 212(8) of the Companies Act, 1956 from attaching a copy of the balance sheet and the profit and loss account of the subsidiary companies, and other documents, to the Annual Report of the companies, subject to fulfilment of certain conditions specified in the aforesaid circular. The annual accounts of the subsidiary companies will be made available to Shareholders on request and will also be kept for inspection by any Shareholder at the Registered Office and Corporate Headquarters of your Company, and its subsidiaries. The consolidated financial statements presented by the Company include the financial statements of each of its subsidiaries. As required, pursuant to the provisions of Section 212 of the Act, a statement of the holding Companys interest in the subsidiary companies forms part of the Annual Report. In view of the ongoing economic uncertainty in Zimbabwe and the long term restriction on financial repatriation, the accounts of Zimbabwe based entities have not been consolidated under Accounting Standard (AS 21) Consolidated Financial Statements. Please refer to note 3 (c) of schedule 12 of the consolidated accounts. FIXED DEPOSITS Your Company is not accepting fixed deposits from the public / Shareholders. In respect of deposits accepted earlier, cheques had been issued for the principal amount and interest thereon amounting to Rs 1.31 million, which remained unencashed as on March 31, 2011. AUDITORS M/s Deloitte Haskins & Sells, Chennai, Chartered Accountants, Statutory Auditors of your Company, will retire at the conclusion of the ensuing Annual General Meeting and be eligible to offer themselves for reappointment as Statutory Auditors for FY 2011-12. AUDITORS REPORT The comments on the statement of accounts referred to in the report of the auditors are self explanatory. COST AUDIT M/s N P Gopalakrishnan & Co., cost accountants, have been appointed as cost auditors to conduct an audit of the Companys cost records, for the year ended March 31, 2011, with the approval of the Central Government. They will submit their report to the Board of Directors, before forwarding it to the Ministry of Corporate Affairs, Government of India. BOARD OF DIRECTORS The Government of Kerala nominated Dr A K Dubey in place of P Prabakaran on the Board of the Company w.e.f. March 26, 2011. Mr Mike J Hankinson resigned from the Directorship of the Company w.e.f. April 2, 2011. The Board places on record its appreciation for the contribution made by Mr Mike J Hankinson during his tenure of Directorship. Mr Shardul S Shroff has been appointed as an additional director of the company w.e.f. May 11, 2011. He holds office till the date of the ensuing Annual General Meeting. The Company has received requisite notice together with deposit, as provided under Section 257 of the Companies Act, 1956, from a Shareholder proposing the appointment of Mr Shardul S Shroff as a director liable to retire by rotation. In accordance with the provisions of the Act and Articles of Association of the Company, Mr T Balakrishnan, Mr Robert Steinmetz and Mr A K Purwar, Directors of the Company, are liable to retire by rotation and being eligible, offer themselves for re-appointment. None of the Directors are disqualified under Section 274(1)(g) of the Companies Act, 1956. AWARDS AND RECOGNITIONS In its constant quest for growth and achievement, your Company was honoured and recognised at various forums. The prominent Awards are listed below for your reference.

CORPORATE SOCIAL RESPONSIBILITY Your Company is a responsible corporate citizen, and strives to create value for the communities it operates in. A detailed report on the Companys community efforts form part of the Annual Report. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO Particulars required under Section 217(1)(e) of the Act, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, regarding conservation of energy, technology absorption and foreign exchange earnings and outgo, are given in Annexure A, forming part of this Report. CORPORATE GOVERNANCE REPORT An organisations Corporate Governance philosophy is directly linked to its excellence in performance. Keeping this important dictum in view, your Company has always placed major thrust on managing its affairs with diligence, transparency, responsibility and accountability. The Company is committed to adopting and adhering to established world-class corporate governance practices. The Company understands and respects its fiduciary role and responsibility towards its stakeholders and society at large, and strives to serve their interests, resulting in creation of value and wealth for all stakeholders. The compliance report on corporate governance and a certificate from M/s Deloitte Haskins & Sells, Chennai, Chartered Accountants, Statutory Auditors of the Company, regarding compliance of the conditions of corporate governance, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges, is attached herewith as Annexure B to this Report. PARTICULARS OF EMPLOYEES In terms of the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, the names and other particulars of the employees are set out in Annexure C to the Directors Report. DIRECTORS RESPONSIBILITY STATEMENT As required by Section 217 (2AA) of the Companies Act, 1956, your Directors state that: i) In preparation of the annual accounts for the year ended March 31, 2011, the applicable accounting standards have been followed and there has been no material departure; ii) The selected accounting policies were applied consistently and the Directors made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as of March 31, 2011, and of the profit of the Company for the year ended as on date; iii) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and iv) The annual accounts have been prepared on a going concern basis.

ACKNOWLEDGEMENT Your Company has been able to operate efficiently because of an organisational culture which upholds professionalism, integrity and continuous improvement across all functions, as well as efficient utilisation of the Companys resources for sustainable and profitable growth. Your Directors wish to place on record their appreciation to the respective State Governments of Kerala, Gujarat, Haryana and Tamil Nadu, and the National Governments of India, South Africa and the Netherlands. We also thank our customers, business partners, members, bankers and other stakeholders for their continued support during the year. We place on record our appreciation of the contribution made by all employees towards the growth of your Company.

Apollo Tyres

MRF

Balkrishna Ind

Goodyear

Ceat

Mar '11 Sep '10

Mar '11

Dec '10

Mar '11

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 50.41 50.41 0.00 0.00 4.24 4.24 0.00 0.00 19.33 19.33 0.00 0.00 812.44 0.00 831.77 385.44 221.59 607.03 1,438.80 Balkrishna Ind 23.07 23.07 0.00 0.00 244.49 3.20 270.76 0.00 0.00 0.00 270.76 Goodyear 34.24 34.24 6.05 0.00 608.85 0.00 649.14 624.13 130.78 754.91 1,404.05 Ceat

1,842.03 1,686.44 3.12 0.00

1,895.56 1,690.68 1,093.30 541.95 814.67 410.54

1,907.97 952.49 3,803.53 2,643.17 Apollo Tyres MRF

Mar '11 Sep '10

Mar '11

Dec '10

Mar '11

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors 3,299.13 3,367.90 915.55 2,038.99 1,008.95 321.51 687.44 146.38 32.24 410.38 324.78 304.26 165.75 138.51 59.47 0.00 61.30 97.66 1,881.55 520.46 1,361.09 123.40 86.53 567.46 468.68

2,383.58 1,328.91 502.83 559.35 497.72 77.67

1,136.33 1,110.68 204.28 811.49

Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets

133.65

52.27

10.96 746.12 487.15 0.03 1,233.30 0.00 298.14 362.41 660.55 572.75 0.00 1,438.81

53.93 212.89 24.84 164.01 401.74 0.00 285.68 43.28 328.96 72.78 0.00 270.76

44.62 1,080.76 159.71 3.26 1,243.73 0.00 1,383.58 27.12 1,410.70 -166.97 0.00 1,404.05

1,474.26 1,974.44 889.36 7.61 142.29 0.52

2,371.23 2,117.25 0.00 0.00

1,277.81 1,202.25 735.65 176.13

2,013.46 1,378.38 357.77 0.00 738.87 0.00

3,803.53 2,643.17

Contingent Liabilities Book Value (Rs)

697.77 37.55

918.85 3,986.38

949.73 86.05

29.57 115.99

269.63 187.80

Source : Dion Global Solutions Limited

Name

Last Price

Market (Rs. cr.) 4,645.54 4,264.05 2,572.09 350.83 338.74 248.97

Cap. Sales Turnover 9,735.34 5,490.74 2,002.88 3,516.33 4,831.22 1,097.26

Net Profit

Total Assets

MRF Apollo Tyres Balkrishna Ind Ceat JK Tyre & Ind TVS Srichakra

10,953.50 84.60 266.10 102.45 82.50 325.15

619.42 198.25 185.66 22.28 61.32 39.17

2,643.17 3,803.53 1,438.81 1,404.05 2,032.75 369.65

PTL Enterprises Elgi Rubber Competition

35.00 21.45

231.66 107.36

40.00 196.29

19.84 18.87

126.53 217.11

Balance Sheet

------------------- in Rs. Cr. -------------------

Dividend Summary For the year ending March 2011, Apollo Tyres has declared an equity dividend of 50.00% amounting to Rs 0.5 per share. At the current share price of Rs 84.60 this results in a dividend yield of 0.59%. The company has a good dividend track report and has consistently declared dividends for the last 5 years. * As per the Profit & Loss account Dividend Declared Announcement Date 11-05-11 31-05-10 04-05-09 09-05-08 12-03-07 05-05-06 Effective Date 26-07-11 14-07-10 29-06-09 27-06-08 23-03-07 21-08-06 Dividend Type Final Final Final Final Interim Final Dividend (%) 50.00 75.00 45.00 50.00 45.00 45.00 Remarks

AGM AGM

Source : Dion Global Solutions Limited

Splits Summary Apollo Tyres had last split the face value of its shares from Rs 10 to Rs 1 in 2007.The share has been quoting on an ex-split basis from August 17, 2007. Splits History (Apollo Tyres) Announcement Date 01-05-2007 Source : Dion Global Solutions Limited Old FV 10 New FV 1 Ex-Split Date 17-08-2007

(A) Shareholding of Promoter and Promoter Group

(1) Indian

Individuals Hindu Undivided Family

5,330,791

5,330,791

1.06

1.06

Bodies Corporate

12

226,496,504

226,489,054

44.94

44.94

87,450,000

38.61

Sub Total

17

231,827,295

231,819,845

46.00

46.00

87,450,000

37.72

(2) Foreign

Individuals (NonResidents Individuals / Foreign Individuals)

1,977,000

1,977,000

0.39

0.39

Sub Total

1,977,000

1,977,000

0.39

0.39

Total shareholding of Promoter and Promoter Group (A)

18

233,804,295

233,796,845

46.39

46.39

87,450,000

37.40

(B) Public Shareholding

(1) Institutions

Mutual Funds / UTI

60

47,861,467

46,604,517

9.50

9.50

Financial Institutions / Banks

17

1,617,555

1,496,805

0.32

0.32

Central Government / State Government(s)

10,000,000

10,000,000

1.98

1.98

Insurance Companies

2,520,745

2,473,995

0.50

0.50

Foreign Institutional Investors

130

113,787,910

113,285,280

22.58

22.58

Sub Total

213

175,787,677

173,860,597

34.88

34.88

(2) NonInstitutions

Bodies Corporate

1,540

37,380,431

37,023,021

7.42

7.42

Individuals

Individual shareholders holding nominal share capital up to Rs. 1 lakh

52,859,751 132,967

41,695,750

10.49

10.49

Individual shareholders holding nominal share capital in excess of Rs. 1 lakh

549,429

549,429

0.11

0.11

Any Others (Specify)

2,289

3,643,187

2,595,547

0.72

0.72

Foreign Corporate Bodies

3,500 1

3,500

Non Resident Indians

2,276

2,920,762

1,873,122

0.58

0.58

Trusts

11

717,925

717,925

0.14

0.14

Foreign Nationals

1,000

1,000

Sub Total

136,799 94,432,798

81,863,747

18.74

18.74

Total Public shareholding (B)

137,012 270,220,475

255,724,344

53.61

53.61

Total (A)+(B)

137,030

504,024,770

489,521,189

100.00

100.00

87,450,000

17.35

(C) Shares held by Custodians and against which Depository Receipts have been issued-m

(1) Promoter and Promoter Group

(2) Public

Sub Total

Total (A)+(B)+(C)

137,030

504,024,770

489,521,189

100.00

87,450,000

17.35

SHARE HOLDING PATTERN

Quarter Ending: December 2011 Shareholding belonging to the category : "Public and holding more than 1% of the Total No.of Shares" No. Name of the Shareholder Total Shares held Shares as % of Total No. of Shares

ICICI Prudential Company Ltd CLSA Mauritius Ltd

Life

Insurance

25,268,477

5.01

2 3

12,164,477 9,171,937

2.41 1.82

Franklin Templeton Investment Funds

Merrill Lynch Capital Markets Espana S 9,040,015 ASV BNY Mellon Emerging Markets Fund 5,606,170

1.79

1.11

IDFC Small And Midcap Equity (SME) 5,300,000 Fund Total 66,551,076

1.05

13.2

Quarter Ending:December 2011 Shareholding belonging to the category : "Promoter and Promoter Group" Total Shares held Shares pledged encumbered or otherwise

No. Name of the Shareholder Number

As a % of grand total Number (A) + (B) + (C)

% of As a % of Total grand total shares (A) + (B) + held (C)

Sunrays Properties & Investment 44,725,648 Company Pvt Ltd Constructive Finance Pvt Ltd Apollo Finance Ltd Neeraj Consultants Ltd Apollo International Ltd Motlay Finance Pvt Ltd Sacred Heart Company Pvt Ltd Investment 38,619,357 36,759,650 39,741,195 17,527,080 12,618,036

8.87

32,350,000 72.33

6.42

2 3 4 5 6

7.66 7.29 7.88 3.48 2.5

2.32 6.75 1.86

11,700,000 31.83 34,000,000 85.55 9,400,000 74.5

9,453,180

1.88

Ganga Kaveri Credit & Holding 7,688,380 Pvt Ltd Classic autotubes Ltd Indus Valley Investment Finance Pvt Ltd Onkar S Kanwar Global Capital Ltd Shalini Chand & 8,818,500

1.53

1.75

10

5,076,040

1.01

11 12 13

4,906,781 3,627,158 1,977,000

0.97 0.72 0.39

14

Kenstar Investment & Finance 1,842,280 Pvt Ltd Neeraj Kanwar Raaja Kanwar Simran Kanwar Taru Kanwar Total 212,380 180,880 18,500 12,250

0.37

15 16 17 18

0.04 0.04 0 0

17.35

233,804,295 46.39

87,450,000 37.4

CALCULATION OF RM AND RI:

Rm=0.01444 Ri=0.066790498

201103 (12)

201003 (12)

200903 (12)

200803 (12)

200703 (12)

INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments

6000.96 510.47 5490.49 29.11 374.66

5425.64 389.08 5036.56 18.4 22.68

4549.63 479.19 4070.44 24.74 -26.59

4246.98 549.11 3697.87 13.94 51.32

3774.34 490.06 3284.28 20.91 39.41

Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Depreciation EBTAD Tax EAT EATBD Total Current Assets Total Current Liabilities WORKING CAPITAL CHANGE IN WORKING CAPITAL FREE CASHFLOW

5894.26

5077.64

4068.59

3763.13

3344.6

4229.08 179.02 282.18 158.95 426.75 48.73 0 5324.71 569.55 147.35 422.2 21.68 400.52 569.55 1820.81 1221.96 598.85 -249.44 818.99 YEAR 2002 2003 2004 2005 2006 2007 2008 2009 2010

3196.65 163.47 248.9 133.83 467.34 57.94 0 4268.13 809.51 122.78 686.73 141.82 544.91 809.51 1220.32 868.95 351.37 -247.48 1056.99 CASHFLOW 234.88 280.2 207 425.22 104.11 364.25 499.55 214.43 1056.99

2910.87 149.29 193.87 102.48 332.12 31.96 0 3720.59 348 98.01 249.99 43.93 206.06 348 1040.9 555.96 484.94 133.57 214.43

2488.47 134.81 208.16 92.96 316.1 41.13 0 3281.63 481.5 87.81 393.69 97.5 296.19 481.5 1125.8 658.91 466.89 -18.05 499.55

2343.2 132.68 186.58 51.31 263.59 32.82 0 3010.18 334.42 74.23 260.19 44.56 215.63 334.42 1268.38 831.32 437.06 -29.83 364.25

2011 2012 2013 2014 2015 2016 DISCOUNTED CASHFLOW 2012 2013 2014 2015 2016 PVIF 744.6532745 757.755849 766.2988622 770.8018878 771.7373132

818.99 794.3886667 862.3571515 930.3256364 998.2941212 1066.262606

SUM OF PRESENT VALUE OF CASH INITIAL FLOWS= 3811.247187 OUTLAY= NPV

1845.15

SUM OF PRESENT VALUE-INITIAL OUTLAY 1966.097187 SUM OF PRESENT VALUE/INITIAL OUTLAY 2.065548702

PROFITABILITY INDEX=

IRR YEAR 2011 2012 2013 2014 2015 2016

CASHFLOW -1845.15 794.3886667 862.3571515 930.3256364 998.2941212 1066.262606 39%

MIRR YEAR 2011 2012 2013 2014 2015 2016 MIRR:-

CASHFLOW -1845.15 794.3886667 862.3571515 930.3256364 998.2941212 1066.262606 5265.768919/1845.15= 2.85384= r= 1.2333-1 (1+r)^5 (1+r)^5

MIRR= CONCLUSION:

0.2333 23.33%

Estimated Cash Flows for 2012-2021

16000 14000 12000 10000 8000 6000 4000 2000 0 2000 -2000 2005 2010 2015 2020 2025 Estimated Cash Flows for 2012-2021

Year Initial outlay 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Present Value Initial Outlay

Discounted Cash flow -1300.65 -700.6268808 347.1986875 2611.651831 3918.285584 3693.393004 2613.73508 3616.410922 272.5497138 6013.755207 6802.481494 29188.83464 1300.65

Ri

Net Present Value (NPV) Net Present Value (NPV) Profitability Index Profitability Index IRR MIRR

Present Value-Initial Outlay 27888.18464 Present Value/Initial Outlay 22.44172886 69% 32%

The projections for the apollo tyres indicates that there is massive growth for the shareholders and investors. The return on investments will yield higher return in the later years.sice the estimated cashflow is negative the cashflow will turns positive during the year 2013.