Apollo Tyres

1.  Loan from International Finance Corporation is secured by:
 
 - A pari passu first charge along with other lenders on the companys
 land at Chalakudy, Kerala State and at village Limda, Gujarat State
 together with the Factory Buildings, Plant & Machinery and Equipments,
 both present and future.
 
 - A first and fixed charge on the Companys Land and premises situated
 at Gurgaon, Haryana State together with all existing and future
 buildings, erections and structures.
 
 - A pari passu first charge on all the movable assets except current
 assets of the company.
 
 - A second charge on all the current assets of the company.
 
 2.  Loan from State Bank of India is secured by:
 
 - A pari passu first charge along with other lenders on the companys
 land at Chalakudy, Kerala State and at village Limda, Gujarat State
 together with the Factory Buildings, Plant & Machinery and Equipments,
 both present and future.
 
 - A second charge on all the current assets of the company.
 
 3.  Loan from GE Capital Services India is secured by:
 
 - A pari passu first charge along with other lenders on the companys
 land at Chalakudy, Kerala State and at village Limda, Gujarat State
 together with the Factory Buildings, Plant & Machinery and Equipments,
 both present and future.
 
 - A pari passu first charge on all the moveable assets except current
 assets at Chalakudy, Kerala State and at village Limda, Gujarat State.
 
 4.  Loan from BNPParibas is secured by:
 
 - A pari passu first charge along with other lenders by way of mortgage
 (created on 21st April, 2009 ) on the companys land at village Limda,
 Gujrat State together with the factory Building, Plant and Machinery
 and equipments, both present and future. Further, this has to be
 secured by way of mortgage on all the immovable assets of the company,
 both present and future.
 
 - A pari passu first charge along with other lenders by way of
 hypothecation over all movables assets of the company, both present and
 future (except stocks & book debts)
 
 5.  Loan from Standard Chartered Bank is secured by;
 
 - A pari passu first charge along with other lenders by way of mortgage
 (created on 21st April, 2009) on the companys land at village Limda,
 Gujrat State together with the factory Building, Plant and Machinery
 and equipments, both present and future. Further, this has to be
 secured by way of mortgage on all the immovable assets of the company,
 both present and future.
 
 - A pari passu first charge along with other lenders by way of
 hypothecation over all movable fixed assets of the company, both
 present & f uturefexcept current assets); and
 
 - A second charge by way of hypothecation over all current assets of
 the company.
 
 6.  Loan from BEML is secured by:
 
 - Hypothecation on the assets to be created out of the proceeds of the
 loan taken from BEML.
 
 7.  1,250 (Nil) 11.50% Secured Redeemable Non-Convertible Debentures of
 Rs.l Million each aggregating to Rs 1,250 Millions (Nil) subscribed by
 Life Insurance Corporation of India is secured by a pari passu first
 charge (created on 21st April, 2009) along with other lenders by way of
 mortgage on the Companys Land & Premises at Chalakudy, Kerala State &
 at Village Limda, Gujrat State together with the factory buildings,
 Plant & machinery & Equipments, both present & future.
 
 8.  Cash Credits and Guarantees from Banks are secured by Hypothecation
 of Raw materials, Work-in-Process, Stocks, Stores and Book Debts
 ranking in priority to the charge created in respect of the IFC Loan
 and also by second charge on the Companys land at Chalakudy, Kerala
 State and at Village Limda, Gujarat State together with the Factory
 Buildings, Plant & Machinery and Equipments, both present and future.
 
 9.  Deferred payment credit is secured by specific assets purchased
 under the scheme and includes Rs. 24.11 Million (Rs.20.94 Millions)
 repayable within one year.
 
 10.  The company had availed interest free Sales Tax Loan from Gujarat
 State Government amounting to Rs. 112.61 Millions. This loan is secured
 by a pari-passu charge on the entire fixed assets of the company, both
 present and future situated at Village Limda in Gujarat State. The said
 loan is repayable in six equal annual installments on the expiry of 14
 years from the commencement of commercial production i.e. 31st May,
 2006. Accordingly, a sum of Rs 18.53 Millions (Rs. 18.53 Millions) was
 paid during the year and a similar amount is repayable within one year.
 
 11.  Secured Loans include Rs. 576.74 Millions (Rs. 602.65 Millions)
 repayable within one year.
 
 12.  Maximum amount outstanding on Commercial papers at any time during
 the year is Rs. 2,250 Millions (Rs. 2,450 Millions).
 
 13.  CONTINGENT LIABILITIES
 
 PARTICULARS                                    2008-09        2007-08  
 
                                              Rs./Millions   Rs./Millions
 
 Sales Tax                                        65.64         68.59
 
 Income Tax-Disputed Demands under Appeal        247.10        145.60
 
 Claims not acknowledged as debts 
 
                        - Employee Related        28.22         17.81
 
                        - Property Disputes        2.60          2.60
 
                        - Others                  16.53         11.29 
 
 Provision of Security                           168.13        156.75 
 
 Guarantees given by bankers on behalf of 
 the Company                                     588.18        370.88 
 
 Custom Duty                                      23.50         23.50 
 
 Excise Duty                                     125.68        297.30 
 
 Irrevocable letters of credit                 1,562.98      1,141.22
 
 
 Excludes demands of Rs. 533.31 Millions (Rs. 533.31 Millions) raised on
 one of the companys units relating to the issues which have been
 decided by the Appellate Authority in companys favour in appeals
 pertaining to another unit of the company.
 
 In the opinion of the management, no provision is considered necessary
 for the disputes mentioned above on the grounds that there are
 reasonable chances of successful outcome of appeals.
 
 14.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for as on 31st March, 2009 is Rs. 6,314.31
 Millions (Rs. 3,882.86 Millions).
 
 15.  a) Split of equity shares
 
 Pursuant to the resolution passed by the shareholders at the annual
 general meeting held on 26th July, 2007, the equity shares of Rs.10
 each of the company were sub divided into 10 equity shares of Re.l per
 share with effect from record date i.e., 27th August, 2007.
 
 b) Preferential allotment of equity share to the promoter group through
 conversion of Equity share warrants
 
 During 2006-07, the company had received Rs. 117.20 Millions towards
 10% security deposit against preferential allotment of 4 Million equity
 share warrants to the promoter group (in accordance with SEBI (DIP)
 guidelines, 2000) at Rs.293.00 each to be converted into 40 Million
 equity shares of Rs.1.00 each at a premium of Rs.28.30 per equity share
 (4 Million equity shares of Rs. 10.00 each at a premium of Rs.  283.00
 each prior to share split) on exercise of option by warrant holders
 before the expiry of 18 months from 19th October, 2006.  During the
 year, the company has issued 15,580,000 (24,420,000) equity shares
 consequent upon conversion of the remaining 1,558,000 (2,442,000)
 warrants into equity shares on exercise of option by promoter group.
 Accordingly, Rs. 410.84 Millions (Rs. 643.96 Millions) equivalent to
 90% of the conversion price in respect of 15,580,000 (24,420,000)
 equity shares has been received during the year and utilised towards
 meeting the normal capital expenditure and other general business needs
 of the company.
 
 c) Buy Back of the Shares:
 
 During the year, the Board of Directors at its meeting held on 19th
 March 2009 has approved a proposal to buy back equity shares of the
 company from open market through stock exchange route up to an amount
 not exceeding Rs 1,220 Million at a maximum buy back price of Rs 25 per
 equity share.
 
 16.  Based on information available with the company and relied upon by
 the auditors, the information as required to be disclosed under Micro,
 Small and Medium Enterprises Development Act, 2006 (MSMDA) as on 31st
 March, 2009 is given below:
 
 PARTICULARS                                  2008-09       2007-08 
 
                                            Rs./Millions  Rs./Millions
 
 Principal amount unpaid as at year-end        38.85         104.79
 
 Amount paid after appointed date during 
 the year                                     104.54         346.85
 
 Amountof interest accrued and unpaid as 
 at year-end                                    5.03           4.67
 
 17. Excise duty relating to sales has been disclosed as a reduction from 
 turnover. Excise duty related to difference between the closing stock
 and opening stock has been disclosed in Schedule 10 (IncreaseJ/Decrease 
 in Work in Process and Finished Goods.
 
 18. Borrowing costs capitalized / transferred to capital work in progress 
 during the year is Rs. 215.48 Millions (Re.0.31 Millions).