1.  Contingent Liabilities
 
 PARTICULARS                                  2010-11        2009-10
 
                                           Rs Million       Rs Million
 
 Sales Tax                                    94.61          108.24
 
 Income Tax-Disputed Demands under Appeal        -               -
 
 Claims not acknowledged as debts 
 
 - Employee Related                           23.90           21.54
 
 - Property Disputes 2.60 2.60
 
 - Others                                      8.83            5.83 
 
 Provision of Security (Bank Deposits 
 pledged with a Bank against
 
 which working capital loan has been 
 availed by Apollo Finance Ltd,               73.30           99.52 
 an Associate Company)
 
 Guarantee given by Company for the 
 loan taken by Sub-Subsidiary
 Companies                                 2,570.40          673.50
 
 Guarantees given by bankers on behalf 
 of the Company                              528.00          497.66
 
 Custom Duty                                  23.50           23.50
 
 Excise Duty*                                177.30           56.34
 
 Irrevocable Letters of Credit             2,916.73        3,865.72
 
 * Excludes demand of Rs 532.12 Million (Rs 532.12 Million) raised on
 one of the Companys units relating to issues which have been decided
 by the Appellate Authority in Companys 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.
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for as on 31st March, 2011 is Rs 4,076.59
 Million (Rs 8,323.09 Million).
 
 3.  Lock Out at Perambra Plant
 
 A Lock out was declared at Companys manufacturing facility at Perambra
 in the state of Kerala on 11th June 2010.  The same was lifted on 21st
 August 2010 after signing of the Long Term Settlement Agreement with
 the workers.
 
 4.  Status of Chennai Project
 
 The first phase of passenger car vehicle segment of the Chennai project
 had commenced operations from 11th March 2010 and the Truck/Bus radial
 segment had commenced operations from 11th May 2010. The construction
 of the second and third phase of the project to enhance the production
 capacities of the passenger car and Truck/Bus radial tyres has started
 in the current financial year.
 
 5.  MAT Credit Entitlement
 
 In view of the consistent profits over the years and also considering
 the future profit projections, the management believes that there is
 convincing evidence with regard to the earning of future taxable income
 and payment of tax under normal tax within the specified period.
 Accordingly, MAT Credit Entitlement of Rs 315.93 Million has been
 recognized during the year.
 
 6. Based on and to the extent of information received from the
 Suppliers by the Company, regarding their status under the Micro, Small
 and Medium Enterprises Development Act, 2006 (MSMED Act) and relied
 upon by the auditors, the relevant particulars as at March 31, 2011 are
 furnished below:
 
 7.  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 Increase in
 Work in Process and Finished Goods.
 
 8.  Borrowing costs capitalized/transferred to capital work in progress
 during the year is Rs 251.28 Million (Rs 257.42 Million). This includes
 Rs 69.90 Million (Rs 31.57 Million) towards loan processing fees and Rs
 14.71 Million (Rs 15.44 Million) towards Bank Charges.
 
 9A Employee Benefits
 
 Gratuity
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service receives gratuity on leaving
 the Company at 15 days salary (last drawn salary) for each completed
 year of service.  The scheme is funded with Life Insurance Corporation
 of India.
 
 The following table summarizes the components of net benefit expense
 recognized in the profit and loss account and the funded status and
 amounts recognized in the balance sheet for the respective plan:
 
 10B Employees Phantom Stock Plan 2010
 
 a) During the year the company had announced Cash-settled Employee
 Share-based Payment Plan (Phantom Stock Plan) for eligible employees of
 the company. Under the scheme, 12 Lacs phantom stock units have been
 granted on April 1, 2010 by the board appointed committee and the same
 will vest as per the following schedule:
 
 Pursuant to the above scheme, the eligible employees are entitled to
 get cash compensation upon exercise of the phantom stock unit within
 seven years of the vesting date
 
 b) Details of the expense recognized during the year and outstanding
 phantom stock units of the company under the Phantom Stock Plan 2010
 are as under:
 
 Phantom Stock Scheme - Proforma P&L and EPS
 
 Had compensation cost for the Phantom Stock units granted under the
 Scheme been determined based on fair value approach, the Companys net
 profit and earnings per share would have been as per the proforma
 amounts indicated below:
 
 11. The Companys operations comprise of only one business segment –
 Automobile Tyres, Automobile Tubes & Automobile Flaps in the context of
 reporting business/geographical segment as required under mandatory
 accounting standards AS -17 Segment Reporting 
 
 The geographical segments considered for disclosure are - India and
 Rest of the world.  All the manufacturing facilities are located in
 India:
 
 Note: Related Parties and their Relationships are as identified by the
 management and relied upon by the Auditors.
 
 Notes:
 
 (a) During the year, the management decided to deregister Pollock and
 Atiken (Pty.) Ltd. Notice of deregistration has been received from
 local authorities on February 17, 2011 and the company would be
 deregistered on the expiry of two months from the date of publication
 of the notice.
 
 (b) The management had initiated the voluntary dissolution of Apollo
 Tyres, Zrt during the last financial year. The dissolution process was
 completed during the year with effect from October 1, 2010.
 
 (c) The management had initiated the winding up of Apollo Tyres Pte
 Ltd. during the last financial year. The winding-up process was
 completed during the year and the name of Apollo Tyres Pte Ltd. was
 struck off the register of companies with effect from June 4, 2010.
 
 (d) During the year the company has incorporated a new subsidiary
 company named Apollo Tyres Middle East FZE for trading activity in the
 Middle Eastern countries of the tyres sourced from various group
 companies.
 
 (e) The company acquired 95% shareholding of KP Construction & Forestry
 Development Co. Ltd. (name being changed to Apollo Tyres (LAO) Co.
 Ltd.) through newly incorporated company in Singapore, Apollo Tyres
 Holdings (Singapore) Pte.  Ltd. (ATHS).
 
 (f) During the year, the management decided to liquidate Apollo Tyres
 (Nigeria) Ltd. Liquidation process is underway and is expected to be
 completed during the next financial year.
 
 (g) The associate companies Apollo Radial Tyres Ltd. & Apollo
 Automotive Tyres Ltd. applied for voluntary dissolution during the
 year. Notice pursuant to Section 560(3) of the Companies Act, 1956 has
 been issued by Registrar of Companies on March 10, 2011 & March 7, 2011
 respectively. Consequently, the companies have been dissolved and their
 names struck-off from the register upon expiry of 30 days from the date
 of said notices.
 
 12.  Operating Lease
 
 The Company has acquired assets under the operating lease agreements
 that are renewable on a periodic basis at the option of both the lessor
 and lessee. Rental expenses under those leases were Rs 400 Million (Rs
 250 Million)
 
 13.  Previous Years figures have been regrouped or rearranged wherever
 considered necessary to conform to the classifications for the current
 year. Figures in brackets relate to previous year.