APOLLO TYRES LTD

Registered Office: 3rd Floor, Areekal Mansion,

Near Manorama Junction, Panampilly Nagar,
Kochi- 682036 (Kerala)
(CIN-L25111KL1972PLC002449)
Tel: +91 484 4012046 Fax: +91 484 4012048,
Email: investors@apollotyres.com
Web: apollotyres.com

NOTICE

NOTICE is hereby given that the 48thAnnual General Meeting of the Members of APOLLO TYRES LTD
will be held on July 23, 2021, Friday at 3:00 PM through Video Conferencing (VC) for which purpose the
Registered Office of the Company situated at 3rd Floor, Areekal Mansion, Near Manorama Junction, Panampilly
Nagar, Kochi-682036 shall be deemed as the venue for the Meeting and the proceedings of AGM shall be
deemed to be made thereat, to transact the following business:
ORDINARY BUSINESS
1. To consider and adopt:
a. the audited financial statement of the Company for the financial year ended March 31, 2021, the
reports of the Board of Directors and Auditors thereon; and
b. the audited consolidated financial statement of the Company for the financial year ended March 31,
2021 and report of Auditors thereon.
2. To declare dividend of `3.50 per equity share, for the financial year ended March 31, 2021.
3. To appoint a Director in place of Mr. Satish Sharma (DIN: 07527148), who retires by rotation, and being
eligible, offers himself for re-appointment.
4. To appoint a Director in place of Mr. Francesco Gori (DIN: 07413105), who retires by rotation, and being
eligible, offers himself for re-appointment.
SPECIAL BUSINESS
5. Ratification of payment of remuneration to Cost Auditor for the financial year 2021-22.
To consider and if thought fit, to pass the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section 148 and all other applicable provisions
of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any
statutory modification(s) or re-enactment thereof for the time being in force), the Cost Auditor, M/s.
N.P.Gopalakrishnan & Co., Cost Accountants appointed by the Board of Directors of the Company for
carrying out Cost Audit of the Company’s plants at Perambra (Kerala), Limda (Gujarat), Chennai (Tamil
Nadu) and Chinnapandur (Andhra Pradesh) and Company’s leased operated plant at Kalamassery (Kerala)
for the financial year 2021-22 be paid out a remuneration of `3.30 lakhs per annum plus reimbursement
of out of pocket expenses.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised
to do all acts and take all such steps as may be necessary, proper or expedient to give effect to this
resolution.”

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6. Private Placement of Non-Convertible Debentures
To consider and if thought fit, to pass the following resolution as a Special Resolution:
“RESOLVED THAT in accordance with the provisions of Section 42, 71 and all other applicable
provisions, if any, of the Companies Act, 2013 (including any statutory modification(s) or re-enactment
thereof, for the time being in force) read with the rules made thereunder, as may be amended from time to
time and any other applicable laws including the SEBI (Issue & Listing of Debt Securities) Regulations,
2008, as amended from time to time and other applicable SEBI Regulations and Guidelines, the provisions
of the Memorandum and Articles of Association of the Company and subject to the receipt of necessary
approvals as may be applicable and such other approvals, permissions and sanctions, as may be necessary,
consent of the Company be and is hereby accorded to raise funds not exceeding `10,000 Million through
Private Placement of Unsecured/ Secured Non-Convertible Debentures during the period of one year from
the date of passing of this resolution within overall borrowing limits of the Company, as approved by the
Members from time to time, in one or more tranches, to such person or persons, who may or may not be
the debenture holder(s) of the Company, as the Board (or any duly constituted Committee of the Board
or such other authority as may be approved by the Board) may at its sole discretion decide, including
eligible investors (whether residents and/ or non-residents and/ or institutions/ incorporated bodies and/
or individuals and/ or trustees and/ or banks or otherwise, in domestic and/ or one or more international
markets), Non-Resident Indians, Foreign Institutional Investors (FIIs), Foreign Portfolio Investors (FPIs),
Venture Capital Funds, Foreign Venture Capital Investors, Mutual Funds, State Industrial Development
Corporations, Insurance Companies, Development Financial Institutions, Bodies Corporate, Companies,
private or public or other entities, authorities and such other persons in one or more combinations thereof
through Private Placement in one or more tranches and including the exercise of a green-shoe option
(within overall borrowing limits of the Company, as approved by the Members from time to time), if any,
on such terms as may be determined under the guidelines as may be applicable, and on such terms and
conditions as may be finalized by the Board or any duly constituted Committee of the Board or such other
authority as may be approved by the Board.
RESOLVED FURTHER THAT for the purpose of giving effect to Private Placement of Unsecured/
Secured Non-Convertible Debentures, the Board of Directors of the Company (the “Board”) or any duly
constituted Committee of the Board or such other authority as approved by the Board, be and is hereby
authorized to determine the terms of the Issue, including the class of investors to whom the Debentures
are to be allotted, the number of Debentures to be allotted in each tranche, issue price, tenor, interest rate,
premium/ discount to the then prevailing market price, amount of issue, discount to issue price to a class
of Debenture holders, listing, issuing any declaration/ undertaking etc. required to be included in the
Private Placement Offer Letter and any other regulatory requirement for the time being in force.”
7. Remuneration of Mr. Satish Sharma (DIN:07527148), Whole-time Director
To consider and if thought fit, to pass the following resolution as a Special Resolution:
“RESOLVED THAT in continuation of resolution passed by Members of the Company on July 31, 2019
relating to appointment of Mr. Satish Sharma (DIN: 07527148) as Whole-time Director and pursuant to
the provision of Section 196, 197, 198 & 203 read with Schedule V and all other applicable provisions of
the Companies Act, 2013 ( “the Act”) and the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for the time
being in force), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Articles
of Association of the Company and subject to such other approval(s), sanction(s) and permission(s) as
may be applicable/ required and subject to such other conditions and modifications as may be prescribed

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 or imposed by any of the authorities, if required/ applicable, in granting such approvals, permissions,
sanctions and pursuant to the recommendation made by Nomination and Remuneration Committee
and Board of Directors, approval of the Members be and is hereby accorded for payment of overall
remuneration to Mr. Satish Sharma, Whole-time Director of the Company, in the event of absence or
inadequacy of profits, upto a maximum amount of `9.50 Crores (Rupees nine crores fifty lakhs only) for
a period from April 1, 2021 to March 31, 2022 (both days inclusive) with liberty and power to the Board
to fix remuneration within the limits approved by the Members of the Company.
RESOLVED FURTHER THAT all other terms and conditions of his remuneration as the Whole-time
Director of the Company, as approved by the resolution passed at the Annual General Meeting of the
Company, held on July 31, 2019, shall remain unchanged.
RESOLVED FURTHER THAT in the event of absence or inadequacy of profits in aforementioned
period, Mr. Satish Sharma will be paid the aforesaid remuneration as an appropriate remuneration under
Section II of Part II of Schedule V of the Companies Act, 2013, by making such compliances as provided
in the said schedule.
RESOLVED FURTHER THAT the Board of Directors of the Company or Committee thereof, be
and is hereby authorized to do all such acts, deeds, things and execute all such documents, instruments,
writings, in its absolute discretion, as may be considered necessary, expedient or desirable, including
power to sub-delegate, in order to give effect to the foregoing resolution or otherwise as considered by
the Board to be in the best interest of the Company as it may deem fit.”

By Order of the Board

For Apollo Tyres Ltd

SEEMA THAPAR
Place: New Delhi Company Secretary
Date : May 12, 2021 FCS No.: 6690

NOTES:
1. In view of the current extraordinary circumstances due to COVID-19 pandemic, social distancing is a
norm to be followed and pursuant to the Circular No. 14/ 2020 (dated April 8, 2020), Circular No.17/2020
(dated April 13, 2020) Circular No. 20/2020 (dated May 5, 2020), and Circular No. 02/2021 (dated
January 13, 2021) (Collectively referred to as MCA Circulars), issued by the Ministry of Corporate Affairs
(MCA) physical attendance of the Members to the Annual General Meeting (AGM) venue is not required
and AGM be held through Video Conferencing (VC) or Other Audio Visual Means (OAVM). Hence,
Members can attend and participate in the ensuing AGM through VC and Members of the Company
joining through VC shall be reckoned for the purpose of quorum under Section 103 of the Act. Further,
all resolutions in the meeting shall be passed through the facility of e-Voting/ electronic system.
2. Pursuant to the Circular No. 14/2020 dated April 8, 2020, issued by the MCA the facility to appoint proxy
to attend and cast vote for the Members is not available for this AGM. However, the Body Corporates are
entitled to appoint authorised representatives to attend the AGM through VC and participate thereat and
cast their votes through e-Voting.
3. In compliance with MCA Circular No. 20/2020 dated May 5, 2020 and SEBI Circular No. SEBI/HO/
CFD/CMD1/CIR/P/2020/79 dated May 12, 2020 and SEBI Circular No. SEBI/HO/CFD/CMD2/CIR/
P/2021/11 dated January 15, 2021 and owing to the difficulties involved in dispatching of physical copies

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 of the financial statements including Board’s Report, Auditor’s report or other documents required to
be attached therewith (together referred to as Annual Report FY21) and Notice of AGM are being sent
in electronic mode to Members whose e-mail address is registered with the Company or the Depository
Participant(s) as on June 25, 2021 and to all other persons so entitled.
4. The Members can join the AGM in the VC mode 15 minutes before and after the scheduled time of
the commencement of the Meeting by following the procedure mentioned in the Notice. The facility
of participation at the AGM through VC will be made available for 1,000 Members on first come first
served basis. However, this number does not include the large Shareholders i.e. Shareholders holding
2% or more shareholding, Promoters, Institutional Investors, Directors, Key Managerial Personnel,
the Chairman of the Audit Committee, Nomination and Remuneration Committee and Stakeholders
Relationship Committee, Auditors etc. who are allowed to attend the AGM without restriction on account
of first come first served basis.
5. The attendance of the Members attending the AGM through VC will be counted for the purpose of
reckoning the quorum under Section 103 of the Companies Act, 2013.
6. The Register of Members and Share Transfer Books shall remain closed from July17, 2021 to July 23,
2021 (both days inclusive) for payment of dividend on equity shares. The dividend, as recommended by
the Board of Directors, if declared at the meeting, will be paid within 30 days from the date of declaration
to the Members holding equity shares as on the cut-off date i.e. July 16, 2021 on 635,100,946 equity
shares of the Company. In respect of shares held in dematerialised form, dividend will be paid on the
basis of beneficial ownership as per details furnished by the respective depositories for this purpose.
7. Corporate Members are requested to send a duly certified copy of the Board resolution/ authority letter,
authorizing their representative(s) to attend and vote on their behalf at the meeting.
8. The relevant explanatory statement pursuant to Section 102 of the Companies Act, 2013, in respect of the
ordinary/ special business set out above in the notice is annexed hereto.
9. All documents referred to in the notice can be obtained for inspection through secured mode by writing
to the Company at its email ID:investors@apollotyres.com till the date of the meeting.
10. During the AGM, the Register of Directors and Key Managerial Personnel and their shareholding
maintained under Section 170 of the Act, the Register of Contracts or arrangements in which Directors
are interested under Section 189 of the Act shall be available for inspection upon login at NSDL e-Voting
system at https://www.evoting.nsdl.com/.
11. The shares of the Company are under compulsory demat list of Securities & Exchange Board of India
w.e.f. November 11, 1999. The trading in equity shares can now only be done in demat form. In case you
do not hold shares in demat form, you may do so by opening an account with a depository participant and
complete dematerialisation formalities.
12. Members holding shares in dematerialised mode are requested to intimate all changes with respect to
their bank details, mandate, nomination, power of attorney, change of address, e-mail address, change in
name etc. to their depository participant. These changes will be automatically reflected in the Company’s
records which will help the Company to provide efficient and better service to the Members.
13. Members holding shares in physical form are requested to intimate changes with respect to their bank
account (viz. name and address of the branch of the bank, MICR code of branch, type of account and
account number), mandate, nomination, power of attorney, change of address, e-mail address, change in
name etc. immediately to the Company’s Registrar and Share Transfer Agent at einward.ris@kfintech.
com.

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14. Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies
(Management and Administration) Rules, 2014 (as amended) and Regulation 44 of SEBI (Listing
Obligations & Disclosure Requirements) Regulations 2015 (as amended), and the MCA Circulars,
the Company is providing facility of remote e-Voting to its Members in respect of the business to be
transacted at the AGM. For this purpose, the Company has entered into an agreement with National
Securities Depository Limited (NSDL) for facilitating voting through electronic means, as the authorized
agency. The facility of casting votes by a Member using remote e-Voting system as well as e-Voting on
the date of the AGM will be provided by NSDL.
15. In line with the MCA Circulars, the Notice calling the AGM has been uploaded on the website of the
Company at www.apollotyres.com. The Notice can also be accessed from the websites of the Stock
Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and
www.nseindia.com respectively and the AGM Notice is also available on the website of NSDL (agency
for providing the Remote e-Voting facility) i.e. www.evoting.nsdl.com.
16. AGM has been convened through VC/ OAVM in compliance with applicable provisions of the Companies
Act, 2013 read with MCA Circulars.
17. THE INSTRUCTIONS FOR MEMBERS FOR REMOTE E-VOTING AND JOINING GENERAL
MEETING ARE AS UNDER:-
I. The remote e-Voting period begins on Tuesday, July 20, 2021 at 10:00 A.M. and ends on
Thursday, July 22, 2021 at 5:00 P.M. The remote e-Voting module shall be disabled by NSDL for
voting thereafter. The Members, whose names appear in the Register of Members/ Beneficial
Owners as on the record date (cut-off date) i.e. July 16, 2021 may cast their vote electronically.
The voting right of Shareholders shall be in proportion to their share in the paid-up equity
share capital of the Company as on the cut-off date, being July 16, 2021.
How do I vote electronically using NSDL e-Voting system?
The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are
mentioned below:
Step 1: Access to NSDL e-Voting system
A) Login method for e-Voting and joining virtual meeting for Individual Shareholders
holding securities in demat mode
In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed
Companies, Individual Shareholders holding securities in demat mode are allowed to vote
through their demat account maintained with Depositories and Depository Participants.
Shareholders are advised to update their mobile number and email ID in their demat accounts
in order to access e-Voting facility.
Login method for Individual Shareholders holding securities in demat mode is given below:

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Type of Shareholders Login Method
Individual Shareholders holding 1. If you are already registered for NSDL IDeAS facility, please
securities in demat mode with NSDL. visit the e-Services website of NSDL. Open web browser by
typing the following URL: https://eservices.nsdl.com/ either
on a Personal Computer or on a mobile. Once the home page
of e-Services is launched, click on the “Beneficial Owner”
icon under “Login” which is available under “IDeAS” section.
A new screen will open. You will have to enter your User ID
and Password. After successful authentication, you will be
able to see e-Voting services. Click on “Access to e-Voting”
under e-Voting services and you will be able to see e-Voting
page. Click on options available against Company name or
e-Voting service provider-NSDL and you will be re-directed
to NSDL e-Voting website for casting your vote during the
remote e-Voting period or joining virtual meeting & voting
during the meeting.
2. If the user is not registered for IDeAS e-Services, option
to register is available at https://eservices.nsdl.com.
Select “Register Online for IDeAS” Portal or click at
https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
3. Visit the e-Voting website of NSDL. Open web browser by
typing the following URL: https://www.evoting.nsdl.com/ either
on a Personal Computer or on a mobile. Once the home page of
e-Voting system is launched, click on the icon “Login” which is
available under ‘Shareholder/ Member’ section. A new screen
will open. You will have to enter your User ID (i.e. your sixteen
digit demat account number held with NSDL), Password/ OTP
and a Verification Code as shown on the screen. After successful
authentication, you will be redirected to NSDL Depository site
wherein you can see e-Voting page. Click on options available
against Company name or e-Voting service provider-NSDL and
you will be redirected to e-Voting website of NSDL for casting
your vote during the remote e-Voting period or joining virtual
meeting & voting during the meeting.
4. Shareholders/Members can also download NSDL Mobile App
“NSDL Speede” facility by scanning the QR code mentioned
below for seamless voting experience.

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Individual Shareholders holding 1. Existing users who have opted for Easi/ Easiest, they can
securities in demat mode with CDSL login through their user id and password. Option will
be made available to reach e-Voting page without any
further authentication. The URL for users to login to Easi/
Easiest are https://web.cdslindia.com/myeasi/home/login
or www.cdslindia.com and click on New System Myeasi.
2. After successful login of Easi/ Easiest the user will be also
able to see the E Voting Menu. The Menu will have links of
e-Voting service provider i.e. NSDL. Click on NSDL to cast
your vote.
3. If the user is not registered for Easi/ Easiest, option to register is available
at https://web.cdslindia.com/myeasi/Registration/EasiRegistration.
4. Alternatively, the user can directly access e-Voting page by
providing demat Account Number and PAN No. from a link in
www.cdslindia.com home page. The system will authenticate
the user by sending OTP on registered Mobile & Email as
recorded in the demat Account. After successful authentication,
user will be provided links for the respective ESP i.e. NSDL
where the e-Voting is in progress.
Individual Shareholders (holding You can also login using the login credentials of your demat account
securities in demat mode) login through your Depository Participant registered with NSDL/ CDSL
through their depository participants for e-Voting facility. Once login, you will be able to see e-Voting
option. Once you click on e-Voting option, you will be redirected
to NSDL/CDSL Depository site after successful authentication,
wherein you can see e-Voting feature. Click on options available
against Company name or e-Voting service provider-NSDL and
you will be redirected to e-Voting website of NSDL for casting your
vote during the remote e-Voting period or joining virtual meeting &
voting during the meeting.
Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User
ID and Forget Password option available at abovementioned website.
Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related
to login through Depository i.e. NSDL and CDSL.

Login type Helpdesk details

Individual Shareholders holding securities in Members facing any technical issue in login can
demat mode with NSDL contact NSDL helpdesk by sending a request at
evoting@nsdl.co.in or call at toll free no.: 1800
1020 990 and 1800 22 44 30
Individual Shareholders holding securities in Members facing any technical issue in login can
demat mode with CDSL contact CDSL helpdesk by sending a request at
helpdesk.evoting@cdslindia.com or contact at
022-23058738 or 022-23058542-43
B) Login Method for e-Voting and joining virtual meeting for Shareholders other than Individual
Shareholders holding securities in demat mode and Shareholders holding securities in physical
mode.

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 How to Log-in to NSDL e-Voting website?
1. Visit the e-Voting website of NSDL. Open web browser by typing the following
URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile.
2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available
under ‘Shareholder/ Member’ section.
3. A new screen will open. You will have to enter your User ID, your Password/ OTP and a Verification
Code as shown on the screen.
Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at
https://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices
after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your
vote electronically.
4. Your User ID details are given below :

Manner of holding shares i.e. Your User ID is:

Demat (NSDL or CDSL) or
Physical
a) For Members who hold shares in 8 Character DP ID followed by 8 Digit Client ID
demat account with NSDL. For example if your DP ID is IN300*** and
Client ID is 12****** then your user ID is
IN300***12******.
b) For Members who hold shares in 16 Digit Beneficiary ID
demat account with CDSL. For example if your Beneficiary ID is
12************** then your user ID is
12**************
c) For Members holding shares in EVEN Number followed by Folio Number
Physical Form. registered with the Company
For example if folio number is 001*** and
EVEN is 101456 then user ID is 101456001***
5. Password details for Shareholders other than Individual Shareholders are given below:
a) If you are already registered for e-Voting, then you can use your existing password to
login and cast your vote.
b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the
‘initial password’ which was communicated to you. Once you retrieve your ‘initial
password’, you need to enter the ‘initial password’ and the system will force you to
change your password.
c) How to retrieve your ‘initial password’?
(i) If your email ID is registered in your demat account or with the Company, your ‘initial
password’ is communicated to you on your email ID. Trace the email sent to you from
NSDL from your mailbox. Open the email and open the attachment i.e. a .pdf file. Open
the .pdf file. The password to open the .pdf file is your 8 digit client ID for NSDL
account, last 8 digits of client ID for CDSL account or folio number for shares held in
physical form. The .pdf file contains your ‘User ID’ and your ‘initial password’.

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 (ii) If your email ID is not registered, please follow steps mentioned below in process for
those Shareholders whose email IDs are not registered.
6. If you are unable to retrieve or have not received the “Initial password” or have forgotten
your password:
a) Click on “Forgot User Details/ Password?” (If you are holding shares in your demat
account with NSDL or CDSL) option available on www.evoting.nsdl.com.
b) “Physical User Reset Password?” (If you are holding shares in physical mode) option
available on www.evoting.nsdl.com.
c) If you are still unable to get the password by aforesaid two options, you can send a
request at evoting@nsdl.co.in mentioning your demat account number/ folio number,
your PAN, your name and your registered address etc.
d) Members can also use the OTP (One Time Password) based login for casting the votes
on the e-Voting system of NSDL.
7. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the
check box.
8. Now, you will have to click on “Login” button.
9. After you click on the “Login” button, Home page of e-Voting will open.
Step 2: Cast your vote electronically and join General Meeting on NSDL e-Voting system.
How to cast your vote electronically and join General Meeting on NSDL e-Voting system?
1. After successful login at Step 1, you will be able to see all the Companies “EVEN” in which you are
holding shares and whose voting cycle and General Meeting is in active status.
2. Select “EVEN” of Company for which you wish to cast your vote during the remote e-Voting period
and casting your vote during the General Meeting. For joining virtual meeting, you need to click on
“VC/ OAVM” link placed under “Join General Meeting”.
3. Now you are ready for e-Voting as the Voting page opens.
4. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/ modify the number
of shares for which you wish to cast your vote and click on “Submit” and also “Confirm” when
prompted.
5. Upon confirmation, the message “Vote cast successfully” will be displayed.
6. You can also take the printout of the votes cast by you by clicking on the print option on the
confirmation page.
7. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.
General Guidelines for Shareholders
1. Institutional Shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned
copy (PDF/ JPG Format) of the relevant Board Resolution/ Authority letter etc. with attested specimen
signature of the duly authorized signatory (ies) who are authorized to vote, to the Scrutinizer by
e-mail to tenrosekochi@gmail.com with a copy marked to evoting@nsdl.co.in.
2. It is strongly recommended not to share your password with any other person and take utmost
care to keep your password confidential. Login to the e-Voting website will be disabled upon five
unsuccessful attempts to key in the correct password. In such an event, you will need to go through

9
 the “Forgot User Details/ Password?” or “Physical User Reset Password?” option available on www.
evoting.nsdl.com to reset the password.
3. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and
e-Voting user manual for Shareholders available at the download section of www.evoting.nsdl.com
or call on toll free no.: 1800 1020 990 and 1800 22 44 30 or send a request to Ms. Soni Singh,
Assistant Manager, NSDL at evoting@nsdl.co.in
Process for those Shareholders whose email ID are not registered with the depositories for procuring
user id and password and registration of email IDs for e-Voting for the resolutions set out in this
notice and for obtaining Notice and Annual Report:
1. In case shares are held in physical mode please provide Folio No., Name of Shareholder, scanned
copy of the share certificate (front and back), PAN (self-attested scanned copy of PAN card),
AADHAR (self-attested scanned copy of Aadhar Card) by email to investors@apollotyres.com.
2. In case shares are held in demat mode, please provide DPID-CLID (16-digit DPID + CLID or
16 digit beneficiary ID), Name, client master or copy of Consolidated Account statement, PAN
(self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card)
to investors@apollotyres.com. If you are an Individual Shareholders holding securities in demat
mode, you are requested to refer to the login method explained at step 1 (A) i.e. Login method for
e-Voting and joining virtual meeting for Individual Shareholders holding securities in demat
mode.
3. Alternatively Shareholders/ Members may send a request to evoting@nsdl.co.in for procuring user
id and password for e-Voting by providing above mentioned documents.
4. In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies,
Individual Shareholders holding securities in demat mode are allowed to vote through their demat
account maintained with Depositories and Depository Participants. Shareholders are required to
update their mobile number and email ID correctly in their demat account in order to access e-Voting
facility.
THE INSTRUCTIONS FOR MEMBERS FOR E-VOTING ON THE DAY OF THE AGM
ARE AS UNDER:-
1. The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for
remote e-voting.
2. Only those Members/ Shareholders, who will be present in the AGM through VC facility and have
not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from
doing so, shall be eligible to vote through e-Voting system in the AGM.
3. Members who have voted through Remote e-Voting will be eligible to attend the AGM. However,
they will not be eligible to vote at the AGM.
4. The details of the person who may be contacted for any grievances connected with the facility for
e-Voting on the day of the AGM shall be the same person mentioned for Remote e-voting.
5. In case of joint holders attending the meeting, only such joint holder who is higher in the order of
names, will be entitled to vote at the Meeting.

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INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE AGM THROUGH VC ARE AS
UNDER:
1. Member will be provided with a facility to attend the AGM through VC through the NSDL e-Voting
system. Members may access by following the steps mentioned above for Access to NSDL e-Voting
system. After successful login, you can see link of “VC link” placed under “Join General meeting”
menu against Company name. You are requested to click on VC link placed under Join General
Meeting menu. The link for VC will be available in Shareholder/ Member login where the EVEN of
Company will be displayed. Please note that the Members who do not have the User ID and Password
for e-Voting or have forgotten the User ID and Password may retrieve the same by following the
remote e-Voting instructions mentioned in the notice to avoid last minute rush.
2. Members are encouraged to join the Meeting through Laptops for better experience.
3. Further Members will be required to allow Camera and use Internet with a good speed to avoid any
disturbance during the meeting.
4. Please note that participants connecting from Mobile Devices or Tablets or through Laptop connecting
via Mobile Hotspot may experience Audio/ Video loss due to fluctuation in their respective network.
It is therefore recommended to use stable Wi-Fi or LAN connection to mitigate any kind of aforesaid
glitches.
5. Shareholders who would like to express their views/ have questions may send their questions in
advance mentioning their name demat account number/ folio number, email ID, mobile number at
(investors@apollotyres.com). The same will be replied by the Company suitably.
FOR HELP IN CONNECTION WITH VOTING BY ELECTRONIC MEANS OR FOR
PARTICIPATING IN THE AGM THROUGH VC:
Members can directly contact Ms. Soni Singh, NSDL, 4th Floor, ‘A’ Wing, Trade World, Kamala Mills
Compound, Senapati Bapat Marg, Lower Parel, Mumbai- 400 013. email ID: evoting@nsdl.co.in, Toll
free no.: 1800 1020 990 and 1800 22 44 30. Members may also write to the Company Secretary at the
email ID: investors@apollotyres.com.
PROCEDURE TO RAISE QUESTIONS/ SEEK CLARIFICATIONS WITH RESPECT TO
ANNUAL REPORT
1. As the AGM is being conducted through VC, Members are encouraged to express their views/
send their queries in advance mentioning their name, DP ID and Client ID/ Folio No., e-mail ID,
mobile number at investors@apollotyres.com to enable smooth conduct of proceedings at the
AGM. Questions/ Queries received by the Company on or before Friday, July 16, 2021 on the
aforementioned e-mail id shall only be considered and responded to during the AGM.
2. Members who would like to express their views or ask questions during the AGM may register
themselves as a speaker by sending their request from their registered email address mentioning their
Name, DP ID and Client ID/ Folio Number, PAN, Mobile Number at investors@apollotyres.com on
or before Friday, July 16, 2021. Those Members who have registered themselves as a Speaker will
only be allowed to express their views/ ask questions during the AGM.
3. The Company reserves the right to restrict the number of questions and number of speakers,
depending on the availability of time for the AGM.
II. Mr. P.P. Zibi Jose, Practicing Company Secretary, has been appointed as the Scrutinizer to scrutinize
the e-Voting process in a fair and transparent manner.

11
 III. The Scrutinizer shall, immediately after the conclusion of voting at the AGM, unblock the votes cast
through remote e-Voting and e-Voting in the presence of at least two witnesses not in the employment
of the Company and make, not later than 2 working days of conclusion of the meeting, a consolidated
Scrutinizer’s Report of the total votes cast in favour or against, if any, to the Chairman or a person
authorised by him in writing who shall counter sign the same.
IV. The Results shall be declared by the Chairman or the person authorised by him in writing not later
than 2 working days of conclusion of the AGM of the Company. The Results declared alongwith the
Scrutinizer’s Report shall be placed on the Company’s website (www.apollotyres.com) and on the
website of NSDL(www.evoting.nsdl.com) immediately after the result is declared by the Chairman.
Any person, holding shares in physical form and non-individual Shareholders holding securities
in demat mode who acquires shares of the Company and becomes Member of the Company after
sending of the notice and holding shares as on the cut-off date i.e. July 16, 2021, may obtain the login
ID and password by sending a request at evoting@nsdl.co.in or to the Company. However if he/
she is already registered with NSDL for remote e-Voting then he/ she can use his/ her existing User
ID and Password for casting the vote. If you forgot your password, you can reset your password by
using “Forgot User Details/ Password” or “Physical User Reset Password” option available on www.
evoting.nsdl.com or call on toll free no. 1800 1020 990 and 1800 22 44 30. In case of Individual
Shareholders holding securities in demat mode who acquires shares of the Company and becomes
a Member of the Company after sending of the Notice and holding shares as of the cut-off date July
16, 2021 may follow steps mentioned in the Notice of the AGM under “Access to NSDL e-Voting
system.
In case of any grievance connected with the facility for voting by electronic means, Members can
directly contact Ms. Soni Singh, NSDL, 4th Floor, ‘A’ Wing, Trade World, Kamala Mills Compound,
Senapati Bapat Marg, Lower Parel, Mumbai- 400 013. email ID: evoting@nsdl.co.in, Toll free
no.:1800 1020 990 and 1800 22 44 30. Members may also write to the Company Secretary at the
email ID: investors@apollotyres.com.
18. Those Members who have so far not encashed their dividend warrants for the financial year from
FY14-FY20, may claim or approach the Company’s RTA for the payment thereof, as the same will be
transferred to Investor Education and Protection Fund (IEPF) established pursuant to Section 125(1) of
the Companies Act, 2013, if a Member does not claim the dividend amount for a consecutive period of
seven years or more. The due date for transfer of unclaimed dividend for FY14 is September 6, 2021.
In accordance with Section 124 (6) of the Act read with Rule 6 of Investor Education and Protection
Fund Authority (Accounting, Audit, Transfer and Refund)Rules, 2016 (as amended from time to time),
if a Member does not claim the dividend amount for a consecutive period of seven years or more, then
the shares held by him/ her shall be transferred to the DEMAT Account of IEPFA. The details of the
Members whose shares are liable to be transferred are also posted on the website of the Company i.e.
www.apollotyres.com. The unclaimed or unpaid dividend which have already been transferred or the
shares which were transferred can be claimed back by the Members from IEPFA. Upon such transfer, the
Shareholders will be able to claim these equity shares only from the IEPF Authority by making an online
application the details of which are available at www.iepf.gov.in and sending a physical copy of the same
duly signed to the Company along with the requisite documents enumerated in the “Web Form IEPF- 5”.
Members can file only one consolidated claim in a financial year as per the IEPF Rule.
19. The Notice of AGM and the copies of audited financial statements, board’sreport, auditor’s report etc.
will also be displayed on the website (www.apollotyres.com) of the Company.
20. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account

12
 Number (PAN) by every participant in securities market. Members holding shares in electronic form are,
therefore, requested to submit the PAN to their depository participants with whom they are maintaining
their demat accounts. Members holding shares in physical form are requested to submit their PAN details
to the Company.
21. To prevent fraudulent transactions, Members are advised to exercise due diligence and notify the
Company of any change in address or staying abroad or demise of any Member as soon as possible.
Members are also advised not to leave their demat account(s) dormant for a long period. The statement of
holdings should be obtained from the concerned Depository Participants and holdings should be verified
periodically.
22. Information under Regulation 36 (3) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and Secretarial Standard-2 on General Meetings, in respect of the Directors seeking
appointment at the AGM, forms integral part of the notice. The concerned Directors have furnished the
requisite declarations for their appointment and their brief profile forms part of the explanatory statement.
23. Members can also provide their feedback on the Shareholder services of the Company using the
‘Shareholders Satisfaction Survey’ form available on the website of the Company (refer link:https://
corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=Others). This feedback will help
the Company in improving Shareholder Service Standards.
24. The Company has appointed KFin Technologies Private Limited as the RTA w.e.f. April 1, 2021. All
documents, dematerialization requests and other communications in relation thereto should be addressed
directly to the Company’s RTA, KFin Technologies Private Limited, at the address mentioned below:
KFin Technologies Private Limited
Unit: Apollo Tyres Ltd
Selenium, Plot No. 31 & 32, Tower B,
Serilingampally, Nanakramguda,
Financial District, Hyderabad – 500 032
Tel. No.: +91 40 6716 2222;
Fax No.: +91 40 23001153
Toll Free No. 1800 309 4001
E-mail Id: einward.ris@kfintech.com
Website: www.kfintech.com
25. Since the AGM will be held through VC, the Route Map is not annexed in this Notice.
By Order of the Board
For Apollo Tyres Ltd

SEEMA THAPAR
Place: New Delhi Company Secretary
Date : May 12, 2021 FCS No.: 6690

13
EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013
Item No. 5
The Board at its meeting held on May 12, 2021, on the recommendation of the Audit Committee, had re-
appointed M/s. N.P. Gopalakrishnan & Co., Cost Accountants, as the Cost Auditors for carrying out Cost
Audit of the Company’s plants located at Perambra (Kerala), Limda (Gujarat), Chennai (Tamil Nadu) and
Chinnapandur (Andhra Pradesh) as well as Company’s leased operated plant at Kalamassery (Kerala) for
the financial year 2021-22 on a remuneration of `3.30 lakhs per annum plus reimbursement of out of pocket
expenses and applicable taxes.
In accordance with provisions of Section 148 of the Companies Act, 2013 read with Rule 14 of the Companies
(Audit and Auditors) Rules, 2014, the remuneration of the Cost Auditors which is recommended by the Audit
Committee has been considered and approved by the Board of Directors and is required to be ratified by the
Members.
None of the Directors or Key Managerial Personnel (KMP) of the Company or their relatives is concerned or
interested(financial and otherwise) in the resolution.
The Board of Directors recommends resolution set out at item no.5 for your consideration and ratification by
way of passing an ordinary resolution.
Item No. 6
In order to potentially meet the additional funds requirement for growth/ capex and for general corporate
purposes, the Members of the Company through postal ballot on September 24, 2020 had passed the
resolution for raising of funds for an amount not exceeding `10,000 million through Issue of Secured
Non-Convertible Debentures (“NCDs”) through Private Placement, in one or more tranches within overall
borrowing limits of the Company. The above resolution is valid for a period of one year i.e. upto September
23, 2021. During the validity of aforesaid resolution as on the date, the Company has not raised any funds
through issue of NCDs.
In order to meet the funds requirement for growth/ capex and for general corporate purposes,the Board
approved raising of funds through issue of NCDs for an amount not exceeding `10,000 million, in one or
more tranches during the period of one year from the date of passing of this resolution.
In order to enable the Company to offer or invite subscriptions for Non-Convertible Debentures on a Private
Placement basis, in one or more tranches, as per provisions of Section 42 of the Companies Act, 2013, read with
Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014 and Rule 18 of the Companies
(Share Capital and Debentures) Rules, 2014, a Company shall not make a Private Placement of its securities
unless the proposed offer of securities or invitation to subscribe to securities has been previously approved by
the Members of the Company by a Special Resolution for each of the offers or invitations. However, in case
of offer or invitation for “Non-Convertible Debentures”, it shall be sufficient if the Company passes a Special
Resolution only once in a year for all the offers or invitations for such Debentures during the year.
Further, the Board of Directors of the Company or any duly constituted Committee of the Board or such
other authority as may be approved by the Board, shall be authorized to determine the terms of the Issue,
including the class of investors to whom the NCDs are to be allotted, the number of NCDs to be allotted in
each tranche, issue price, tenor, interest rate, premium/ discount to the then prevailing market price, amount of
issue, discount to issue price to a class of bond/ debenture holders, listing, issuing any declaration/ undertaking
etc. required to be included in the Private Placement Offer Letter and any other regulatory requirement for the
time being in force.

14
The Board of Directors of the Company, at its Meeting held on May 12, 2021, had approved the above
proposal and recommended the passing of proposed Special Resolution by Members of the Company.
The approval of the Members is being sought by way of a Special Resolution under Section 42 & 71 of
the Companies Act, 2013, read with the Rules made there under, to enable the Company to offer or invite
subscriptions for NCDs on a Private Placement basis, in one or more tranches, during the period of one year
from the date of passing of the resolution, within the overall borrowing limits of the Company, as approved
by the Members from time to time.
None of the Directors or Key Managerial Personnel (KMP) of the Company or their relatives is concerned or
interested (financial & otherwise) in the resolution.
The Board of Directors recommends resolution set out at item no.6 for your consideration and approval.
Item No. 7
The Members of the Company at the AGM held on July 31, 2019 had appointed Mr. Satish Sharma as a
Whole-time Director of the Company for a period of 5 years with effect from April 1, 2019 and the terms
and conditions of appointment mentioned in the explanatory statement were approved by the Members. His
annual remuneration was subject to an overall ceiling of 1% of the Profit before Tax (PBT).
With the current pandemic the economic recovery could be adversely impacted in FY22. The automobile
industry is also facing a serious semiconductor crisis impacting production of vehicles, with a consequent
impact on the tyre industry, both for OEMs and replacement sales. In this situation the Company could have
a fall in profits during FY22.
As per the provisions of Section 197 of the Companies Act, 2013 read with Part II and Section II of Schedule
V, in case of absence or inadequacy of profits, the remuneration to be paid in excess of the limits specified
in Part II of Section II has to be approved by the Members by way of a Special Resolution. Accordingly, if
the Company’s profits are inadequate due to COVID-19 pandemic, the approval of the Members by way of a
Special Resolution will be required for payment of an overall remuneration exceeding the limits specified in
Schedule V.
Therefore, in order to suitably remunerate Mr. Satish Sharma, Whole-time Director, keeping in view his
entitlement and existing remuneration, as also the competitive market practices, if the Company’s profits
become inadequate due to COVID-19 pandemic, the approval of the Members is sought for payment of a
maximum amount of `9.50 crores for a period from April 1, 2021 to March 31, 2022 (both days inclusive).
The aforesaid remuneration has been recommended by the Nomination and Remuneration Committee and
approved by the Board of Directors.
If the Company’s profits become adequate during the aforesaid period, Mr. Satish Sharma shall be entitled
for higher annual remuneration subject to an overall ceiling of 1% of the Profit before Tax (PBT) as per the
terms & conditions of his remuneration approved by the resolution passed at the Annual General Meeting of
the Company, held on July 31, 2019.
All other terms and conditions of the appointment approved by the Members at the AGM held on July 31,
2019 except the abovementioned shall remain unchanged.
Mr. Satish Sharma is also a Director of Apollo Tyres (Thailand) Limited and Apollo Tyres (Malaysia) Sdn.
Bhd.

15
He is a Member of the Risk Management Committee of the Company. He is not holding any other Committee
positions on the Board of other Companies.
He is not related to any other Director and Key Managerial Personnel (KMP) of the Company.
He is not holding any shares in the Company either directly or in form of beneficial interest for any other
person.
He has attended seven meetings of the Board during FY21. The Company has received from Mr. Satish
Sharma, an undertaking that he is not debarred from holding the office of Director pursuant to order of SEBI
or any other authority and Intimation in Form DIR 8 in terms of Companies (Appointment and Qualification
of Directors) Rules, 2014, to the effect that he is not disqualified under Sub Section (2) of Section 164 of the
Companies Act, 2013.
The Company has not committed any default in payment of dues to any bank or public financial institution or
non-convertible debenture holders or any other secured creditor.
Statement pursuant to the provisions of Part II of Section II of Schedule V of the Companies Act, 2013
1. General Information
(i) Nature of Industry
The Company is engaged in the business of manufacture and sale of tyres.
(ii) Date or Expected date of Commencement of Commercial Production
The Company was incorporated on September 28, 1972.
(iii) In case of new Companies, expected date of Commencement of activities as per project
approved by financial institutions appearing in prospectus
Not Applicable
(iv) Financial Performance based on given indicators
The financial performance of the Company in the last 3 years is as follows:-
(` million)

Particulars Year Ended

March 31, 2021 March 31, 2020 March 31, 2019
Sales 113,545 108,327 120,896
Other Operating Income 3,789 2,356 2,642
Revenue from Operations 117,334 110,683 123,538
Operating Profit (EBITDA excluding Other 20,343 13,992 14,791
Income)
Other Income 1,215 286 1,115
Less: Finance Costs 3,794 2,257 1,379
Less: Depreciation & Amortization Expenses 7,134 6,207 4,463
Profit before exceptional Items & Tax 10,630 5,814 10,064
Exceptional Items (110) - (2,000)

16
Profit before Tax 10,520 5,814 8,064
Less: Provision for Tax 3,292 728 2,143
Profit after Tax 7,228 5,086 5,921
(v) Foreign Investment or Collaborations, if any
The Company follows its vision to become a global tyre brand of choice, it has multiple Subsidiaries
for facilitating these operations in various countries. As on March 31, 2021, the Company has 35
overseas wholly owned Subsidiaries/ Step Subsidiaries.
II. Information about the appointee
(i) Background Details
Mr. Satish Sharma aged 53 years is a Chemical Engineer from the National Institute of Technology,
Raipur, Madhya Pradesh. He also holds a post-graduate diploma in Business Management from
Institute of Management Technology, Ghaziabad.
(ii) Past Remuneration
Mr. Satish Sharma was paid an amount of `6.85 Crores during FY21.
(iii) Recognition or Awards
He was the past Chairman of Automotive Tyre Manufacturers’ Association (ATMA). He is a Member
of the Institute of Engineers, Indian Rubber Institute and All India Management Association (AIMA).
(iv) Job Profile and his suitability
As President (APMEA) of Apollo Tyres, Mr. Satish Sharma guides strategy and oversees the
implementation of key functions like manufacturing, sales and marketing, customer relations
and accounts/ commercial in Asia Pacific, Middle East and Africa (APMEA). A Member of the
Company’s Supervisory Board, he is a man who prefers taking challenges head-on. He is credited
with Apollo’s steady sales growth, in the last 5 years. Known for his innovative marketing initiatives
and exceptional leadership qualities, he continues to mentor and coach business units within the
organisation.
(v) Remuneration proposed
The overall remuneration proposed is up to a maximum amount of `9.50 Crores (Rupees nine crores
fifty lakhs only) for a period from April 1, 2021 to March 31, 2022 (both days inclusive).
(vi) Comparative remuneration profile with respect to industry, size of the Company, profile of
the position and person (in case of expatriates the relevant details would be with respect to the
country of his origin)
The proposed remuneration is sought to be paid as appropriate remuneration due to absence or
inadequacy of profits and comparative remuneration profile would not be a determining factor.
However, taking into consideration the size of the Company, the profile of Mr. Satish Sharma, the
responsibilities shouldered by him, the Nomination and Remuneration Committee at their meeting
had considered the remuneration payable to Mr. Satish Sharma and found the same competitive in
line with his experience, skill and expertise in the tyre Industry.
(vii) Pecuniary relationship directly or indirectly with the Company or relation with the managerial
personnel, if any

17
 Besides the remuneration payable to him as the Whole-time Director, he does not have any pecuniary
relationship with the Company and does not have any relationship with the managerial personnel of
the Company.
III. Other Information
1. Reasons for loss or inadequate profits
Continuing Covid-19 stress on the economy and the semiconductor crisis is going to impact the tyre
industry and Apollo Tyres.
2. Steps taken or proposed to be taken for improvement
Against the bleak global and Indian outlook, the Company has adopted a cautious approach. The
focus is on employee safety and conserving cash. The Company is cutting down on all avoidable
costs and focusing on the good costs – R&D, e-Training, Brand building, etc.
3. Expected increase in productivity and profits in measurable terms etc.
The Company will continue its efforts to increase sales and profitability. The APMEA region is
witnessing some traction in demand in the CV and the Agri space and it has put in place all necessary
plans to tap this demand. In other categories, the Company is continuing its progress through
numerous product developments to compete and gain market share whilst keeping its customer
needs at the forefront. There are new product launches planned in FY22 and the Company has been
using the digital medium and innovative ways like virtual launches to reach the customers.
As prescribed by the Ministry of Corporate Affairs (MCA) Circular No. 20/2020 dated May 5, 2020, the
copies of the resolutions passed at the meeting of the Nomination and Remuneration Committee and the
Board of Directors shall be made availabe for inspection of the Members through electronic mode.
This Explanatory Statement may also be read and treated as disclosure in compliance with the requirements
of Section 190 of the Companies Act, 2013.
None of the Directors or KMP of the Company or their relatives, except Mr. Satish Sharma, himself, is
concerned or interested (financial & otherwise) in the resolution.
The Board of Directors recommends the Resolution set out at item no. 7 for your consideration and approval.

DETAILS OF DIRECTORS SEEKING APPOINTMENT/ RE-APPOINTMENT AS REQUIRED

UNDER REGULATION 36 OF THE LISTING REGULATIONS & SECRETARIAL STANDARD-2
ON GENERAL MEETINGS.
Item No. 3
For the details of Mr. Satish Sharma, please refer to item no.7 under the Explanatory Statement of this Notice.
Item No. 4
Mr.Francesco Gori, aged about 68 years, has a degree in Economics from Universita degli Studi in Florence
and he possesses experience over 33 years with Pirelli Tyre S.p.A Group in the field of product development,
sales & marketing, product management etc. He has had a long and illustrious career in the tyre industry. His
last appointment was as the CEO of Pirelli Tyre, a position that he held from 2006 till he left the Company
in 2012. He has also served as a Member of the Board of Directors of many Companies of Pirelli & C
Group. He had joined the Company as “Advisor for Strategy”effective from October 26, 2015 to support the
goal of international growth, identification and development of new opportunities and has been Member of
Management Board of the Company.

18
Mr. Francesco Gori was first appointed on the Board of the Company on February 9, 2016.
He is not holding Directorship on the Board of other Companies.
He is a Member of Risk Management Committee of the Company.He is not holding any other Committee
positions on the Board of other Companies.
He is not holding any shares in the Company either directly or in form of beneficial interest for any other
person.
He has attended seven Board Meetings during FY21.
He is not related with any other Director and Key Managerial Personnel (KMPs) of the Company.
The sitting fees for attending the Board Meetings and the commission as approved by the Members within
the overall ceiling of 1% of the net profits of the Company, is paid to the Directors of the Company other than
Managing Directors and Whole-time Director in proportion to their tenure of Directorship. Mr. Francesco
Gori is entitled to a remuneration of Rs.5 million as commission, as approved by the Board, for FY21.
The Company has received from Mr. Francesco Gori, an undertaking that he is not debarred from holding the
office of Director pursuant to order of SEBI or any other authority and Intimation in Form DIR 8 in terms of
Companies (Appointment and Qualification of Directors) Rules, 2014, to the effect that he is not disqualified
under Sub Section (2) of Section 164 of the Companies Act, 2013.
The Board considers that his continued association would be of immense benefit to the Company and it is
desirable to continue to avail services of Mr. Francesco Gori.

By Order of the Board

For Apollo Tyres Ltd

SEEMA THAPAR
Place: New Delhi Company Secretary
Date : May 12, 2021 FCS No.: 6690

19
Corporate Office : Apollo Tyres Ltd, 7, Institutional Area, Sector-32, Gurgaon- 122001, India, Tel +91 124 2383002

20
 No challenge
too tough

ANNUAL REPORT 2020-21

 Contents

No challenge
02 Corporate Factsheet
06 Key Performance Indicators

08
too tough
08 From our Leadership
From our 10 Chairman’s Message
Leadership
12 Vice-Chairman’s Message
14 Board of Directors
They say crisis reveals character. Financial Year 2020-21 APOLLO TYRES IN BRIEF
16 Management Team
(FY21) was business as unusual, and at Apollo Tyres Apollo is one of the most
we faced an uphill journey with the onset of the global trusted names in the
pandemic, leading to our first quarterly loss in over two
decades. This, however, did not deter us from driving manufacture and sale of 18 Value Creation at Apollo Tyres
forward in our quest for value creation. On one hand, we tyres. The Company was 20 Creating Value for Stakeholders,
mobilised resources to help the fight against COVID-19 founded in 1972 and is across a Global Value Chain
and on the other, redoubled our efforts to ensure that

18
our long-term growth strategy remained intact.
headquartered in Gurgaon,
Haryana (India). 22 Value Creation Model
So, we launched our Vision 2025, ‘Driving Progress, Value Creation 24 Outcomes across Capitals
Together’, along with a new purpose statement, at Apollo Tyres
CATERING TO ALL TYRE SEGMENTS 26 Interconnectivity between Capitals
values and corporate identity to help us continue to
create value for everyone. We backed our strategy
and inaugurated our 7th plant globally in Andhra
TRUCK AND BUS
Pradesh and a new 2-wheeler radial facility in Gujarat. LIGHT TRUCK 28 Our ESG Performance
Not just that, to take on the pandemic, we launched 30 Governance
an internal global initiative – DRIVE (Discover new PASSENGER 36 Environment
sales opportunities, Re-engineer Apollo, Inventory
and production optimisation, Value of cash and
VEHICLES 40 Social
Eliminate cost). All these, coupled with a strong stated TWO-WHEELER 58 Being Future Ready

28
commitment to superior ESG performance, defined the
year for us. OFF-HIGHWAY
60 Management Discussion & Analysis
After all, it is only challenging times that can validate Our ESG
the Apollo Tyres belief of ‘No Challenge Too Tough’. Performance
78 Statutory Reports
78 Board’s Report
KEY HIGHLIGHTS 2020-21
90 Annual Report on CSR

₹169.5 Bn ₹3.5 Bn 96 Business Responsibility Report

Sales Net Profit 113 Corporate Governance Report

142 Financial Statements

60
Management
142 Standalone
207 Consolidated
Discussion & Analysis
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Corporate Factsheet

Apollo Tyres A truly global business

at a glance
We manufacture tyres in multiple state-of-the-art facilities and
make them available across the world, through our extensive
network of branded, exclusive, and multi-product outlets.

As one of the most trusted tyre

businesses in India and globally,
we persist in our aim to strengthen
our market leadership to drive 7 2 100+
unprecedented growth for Manufacturing locations Global R&D centres Countries served
our stakeholders. across India and Europe

Vision
A strong portfolio of reliable brands
DRIVING PROGRESS,
TOGETHER.
Our two key brands Apollo and Vredestein cater to specific consumer
segments and the product portfolio comprises tyres for passenger,
commercial, off-highway vehicles and two-wheelers. Each has a
distinct positioning and brand language.

Values
We have reshaped our values and simplified them
to all-encompassing three that sit at the heart of
Apollo Tyres Ltd.

FOLLOWING ONE TAKING

OUR PASSION FAMILY RESPONSIBILITY
We champion ideas that inspire us We create an exclusive culture We are committed to building a A choice of global and Indian original equipment The Vredestein brand is over 110 years old and has
to think big, be brave and challenge that brings our people, partners responsible and sustainable business auto players, the Apollo brand is available across all achieved premium brand status in the automotive
the ordinary community together that benefits society categories, including commercial, passenger vehicles, industry. Products include car tyres, tyres for agricultural
two-wheelers, farm and industrial. and industrial applications and bicycle tyres.

2 Apollo Tyres Ltd Annual Report 2020-21 3

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Corporate Factsheet

A people company
The skills, experience, diversity and
productivity of our employees enable
us to deliver on our promises.

18,734
Employees

A calibrated An endeavour for good

financial strategy We have an ambitious sustainability agenda focused on
We approach long-term supporting the society’s holistic growth and preserving
returns with efficiency, the planet that we cohabit.
foresight and prudence.

₹129.9 Mn ~0.7 Mn m3
₹11.9 Bn CSR Spend Water Recycled/Reused
Capital Expenditure Outflow

Nearly Over

₹27.9 Bn a million 36,000 GJ

EBITDA CSR Beneficiaries Energy Saved

4 Apollo Tyres
TyresLtd.
Ltd Annual Report 2020-21 5
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Key Performance Indicators

Delivering Net Debt/EBITDA Net Debt/EBIT

through challenges
(excluding other income) [Ratio] (including other income) [Ratio]

3.10 7.30
2.29
1.45 1.64 1.50 3.58
2.32 2.60
1.75

FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21

Revenue Segmentation
Sales [₹ Bn] Net Profit [₹ Bn] Return on Equity [%] by Geography [%]

172.73 169.55 10.99 15.8 0.9

149.29 160.96
140.53 67.2
7.24 6.80
8.5
4.76 6.9
3.50 4.8
3.3
31.9 APMEA
Europe
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Others
FY17 FY18 FY19 FY20 FY21

Capital Expenditure EBITDA Revenue Segmentation Revenue Segmentation

Outflow [₹ Bn] (excluding other income) [₹ Bn] by Customers [%] by Products [%]

33.19 27.97 17.8 6.3 35

31.02
28.36
22.93 18.61 19.85 19.39 5.5
16.64
11.90 Passenger Vehicle

82.2 10.7 Truck and Bus

Off Highway
Replacement Light Truck
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 OEM
42.5 Others

EBIT
(including other income) [₹ Bn] Net Debt/Equity [Ratio] Natural Rubber Price Movement [₹/KG] Crude Oil Price Movement [$/Barrel]

167 65.7
15.39 16.12 0.61 157
158
55.3 62.3
11.75 12.69 0.45 156
8.24
0.37 0.37 134
142 152 45.1 43.8
0.28 43.3 50.2
127
120 132 41.9
40.8 41.5
116 26.5
32.3
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
20 20 20 20 20 20 20 20 20 21 21 21 20 20 20 20 20 20 20 20 20 21 21 21

6 Apollo Tyres Ltd Annual Report 2020-21 7

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

From our
Leadership
At Apollo Tyres, our Board, Management and
Governance Structure are designed to keep us stable
and moving forward, no matter how tough the terrain
or how long the journey.

Our leadership helps define and implement our

strategy in line with our stakeholder commitments.
We adhere to the strictest principles of compliance
and ethics, while improving our ESG performance,
leading to sustained value-creation
for all stakeholders.

7th
In this section
10 Chairman’s Message
Manufacturing facility globally 12 Vice-Chairman’s Message
(5th in India) inaugurated in 14 Board of Directors
Andhra Pradesh 16 Management Team
8 9
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Chairman’s Message

In pursuit of
enduring value
I have always maintained that we have tried This helped us end the fiscal on a very healthy
to build a culture at Apollo Tyres where we see note with robust revenue growth across market
challenging times as opportunities. Like the segments and geographies.
theme of the annual report, each one of us at
During the year of the pandemic, we left no stone
Apollo Tyres truly believes that ‘No challenge
unturned to ensure that we live by one of our core
too tough’. As difficulties forced all their might
values – ‘Taking Responsibility’. Our teams across
on us, we endured and overcame them, and leapt
the regions extended themselves to distribute
forward living our DNA of ‘go the distance’.
food and other resources to people across the
During the year of At times, adversities bring the best in us and it
was delightful to see Apolloites living the value
country. Further, the best way of beating the
virus was ensuring the right information of
the pandemic, we left of ‘One Family’ during the adversity. As your
trustee of the value system in the company,
COVID-19 across various communities and we
reached out to over a million people creating
no stone unturned to I saw the spirit of empathy and the sense of
togetherness as individuals and teams reached
awareness and safety guidelines. We also joined
the ‘Jan Andolan’ for Tuberculosis (TB) free India
ensure that we live by out to people inside and outside the organisation
to help and support them during the pandemic.
to contribute to India’s National TB Elimination
Programme to meet the ambitious goal of
one of our core values – During such difficult times, we ensured constant
communication with the employees and shared
eradication of TB from India by 2025.
We are not out of the grim situation as the
‘Taking Responsibility’. the challenges of living in a year of COVID-19.
This helped us to continue our relentless focus
second wave has been causing massive disruption
at personal and professional fronts. Yet we
on cost reduction and enhancing manufacturing
Onkar Kanwar efficiencies across the organisation. It is my firm
remain confident!
Chairman and Managing Director believe that we need to drive unnecessary cost We have launched the Vision 2025 – ‘Driving
out of our business, as that is the delta between Progress, Together’ – along with a new purpose
a profitable and a losing organisation in this and values to enable us to continue surging
increasingly global industry. ahead, despite the challenges and adversities.
I am confident that Team Apollo will continue to
be firmly guided by its vision, purpose and values
to take the company to new heights.
I would like to acknowledge every single
We have launched the employee, network partner and business
Vision 2025 – ‘Driving partner for having stood by Apollo Tyres in these
challenging times, and actively contributed to
Progress, Together’ – along this success. I would like to thank each one of
you, our valuable shareholders, for having been
with a new purpose and with us in this exciting journey. The support that
values to enable us to we continue to receive from our banks, financial
institutions and the various State and National
continue surging ahead, Governments where we operate, enable us to
excel and we remain grateful as ever.
Dear Member, despite the challenges and
We, at Apollo Tyres, remain committed and
I hope that you and your family members are In India, the fiscal began with a lockdown adversities. I am confident sincere in our efforts to keep delivering ever
safe and following all precautions and safety resulting in a never before situation for all of
guidelines in these days of crisis. us. The main fallout of the lockdown (and the that Team Apollo will better value to you, our shareholders. I look
forward to having many more exciting updates
first quarter of the fiscal) was the plummeting
We have been a witness to an extremely
demand for products and services. It was an continue to be firmly guided for you in the new year.
challenging and difficult FY21. The COVID-19
pandemic raged across the world and the ensuing
extremely tough quarter for us as well, something by its vision, purpose and Stay safe!
that we have not faced in a long, long time. And
challenges had to be faced by individuals,
communities, organisations and countries.
for the first time in over two decades, we reported values to take the company Regards
a quarterly loss of ₹ 135 crore (Euro 16.1 million)
with both our Indian and European operations to new heights. Onkar Kanwar
reporting losses for the quarter. Chairman and Managing Director

10 Apollo Tyres Ltd Annual Report 2020-21 11

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Vice Chairman’s Message

Ahead with
clear conviction To take on the pandemic, we launched an internal global
initiative – DRIVE (Discover new sales opportunities,
Re-engineer Apollo, Inventory and production optimisation,
Value of cash and Eliminate cost)

Given the pandemic, our first and foremost And the year ended with the introduction of the
concern was the safety of our employees across Apterra Cross tyres for the Indian market. These
the globe. We ensured COVID appropriate are dedicated range of tyres for the fast growing
behaviour was strictly adhered to in all our offices compact SUV segment in India and a first in the
and plants and urged people to follow it when at industry.
home. Within a short time, we created an entire
As I look back, I see the year has indeed passed
eco-system to ensure that our employees could
by quickly, despite the uncertainty all around us.
work from their homes and yet continue business
I don’t see uncertainty changing given the second
as usual.
wave of the virus hitting many countries even as it
While business was unusual, life at Apollo hit India hard. FY22 will not be an easy year and
Tyres remained as usual - fast paced. To take we have our work cut out to post profitable and
on the pandemic, we launched an internal sustainable growth.
global initiative – DRIVE (Discover new sales
We continue to plan ahead. We have launched
opportunities, Re-engineer Apollo, Inventory
our vision for 2025 – ‘Driving Progress, Together’ –
and production optimisation, Value of cash and
along with a new purpose – ‘Enabling Excellence’.
Eliminate cost) and this helped us to not only to
These will be part of the new corporate identity
ease the pain of the pandemic but be ready when
which you have seen in the pages of the annual
the lockdowns were lifted and post a healthy
report.
overall growth for the fiscal.
I am confident that we will continue to be
Digitalisation played a key role in the DRIVE
unstoppable in our pursuit to achieve the vision
journey. We added it to our focus on people,
as I and every colleague at Apollo Tyres firmly
brands and product technology, as we ramped
believe in the power of the theme of the annual
up our investment significantly in this area.
report and this gives us confidence in our ability
A strategy based on these focus areas helped to overcome any challenge.
us to commission our 7th manufacturing unit
I sincerely thank the support of every single
globally, and the 5th in India, in Andhra Pradesh.
member of the Apollo One Family including our
We also inaugurated our two-wheeler radial
employees, our network and business partners
Dear Member, tyre facility in Gujarat as we set our eyes on
and our shareholders. I will continue to update
building a leadership position in highly profitable
I sincerely hope that each one of you and your As a global company, we faced various challenges you on a periodic basis and I do look forward to
premium two-wheeler market.
family members are safe, practising all safety and had to navigate multiple scenarios as the being in touch with you.
protocols and continuing to adhere to all situation was different in each country and kept The fiscal saw the virtual launch of the new
In conclusion I urge you to follow all safety
government guidelines. changing fast. We could not have a consistency Vredestein Wintrac and the new Vredestein
protocols and stay safe!
of approach and had to learn quickly to live visual identity. This will allow us to position
‘No challenge too tough’ is the theme for the
with the added complexity. And yet as the Vredestein as an ultra premium brand and take With best regards,
fiscal’s annual report. It was a fiscal of the COVID
pandemic raged on, we forged a path through our marketing activities to the next level. We
pandemic which disrupted and challenged
these uncertain times. We pushed the envelope launched the Vredestein brand and its specially
everything that we knew as normal.
and went the distance with a firm belief that no
challenge is so tough that it cannot be overcome
designed best-in-class product portfolio for the
North American market.
Neeraj Kanwar
or converted into an opportunity to ensure that Vice-Chairman and Managing Director
we are on our profitable and sustainable growth
journey. FY21 was business as unusual!

12 Apollo Tyres Ltd Annual Report 2020-21 13

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Board of Directors

Diversified experience
to deliver strong
governance Pallavi S Shroff

Regional Managing
Gen. Bikram Singh
(Retd.)

Partner, Shardul
Former Chief of
Amarchand
Indian Army
Mangaldas & Co

Onkar Kanwar Neeraj Kanwar Francesco Gori Vinod Rai

Chairman and Vice-Chairman and Former CEO, Ex-Comptroller and

Managing Director Managing Director Pirelli Tyre Auditor General of India

Akshay Chudasama Vikram S Mehta Anjali Bansal Satish Sharma

Regional Former Chairman, Former Global Partner President (APMEA) and

Managing Partner, Shell Group of and MD, Whole-time Director
Shardul Amarchand Companies TPG Private Equity
Mangaldas & Co

Sunam Sarkar Robert Steinmetz Francesco Crispino Vishal Mahadevia

President & Chief Former Chief Co-founder, Managing Director,

Business Officer, of International Greater Pacific Capital Head of India
Apollo Tyres Holdings Business, Continental AG Warburg Pincus
(Singapore) Pte Ltd

14 Apollo Tyres Ltd Annual Report 2020-21 15

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Management Team

A hands-on
team that steers
performance

Onkar Kanwar Neeraj Kanwar Pedro Matos Satish Sharma

Chairman and Vice-Chairman and Global Programme Asia Pacific, Middle East
Managing Director Managing Director Management and and Africa Operations
European OE Business

Daniele Lorenzetti Gaurav Kumar Sunam Sarkar Benoit Rivallant

Research and Finance and Legal Sustainability, Human European
Technology Resources, Corporate Operations
Communications,
Procurement and
Supply Chain

K Prabhakar P K Mohamed Hizmy Hassen Yoichi Sato

Projects (Advisor) Technology Digitalisation and IT Quality, Health, Safety
and Environment

16 Apollo Tyres Ltd Annual Report 2020-21 17

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Value Creation
at Apollo Tyres
Apollo Tyres commenced its integrated reporting journey
in FY18, to articulate its performance across six identified
capitals, its strategic way forward and progress.
We conducted the materiality assessment in FY18 as
per the Integrated Reporting framework. A third-party
study was commissioned to identify the material issues by
mapping stakeholder concerns and the business priorities.

In this section

7,248 MT
Total Recycled Material used
20 Creating Value for Stakeholders,
across a Global Value-Chain
22 Value Creation Model
24 Outcomes across Capitals

22 patents
26 Interconnectivity between Capitals

filed in FY21

18 19
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Creating Value for Stakeholders, across a Global Value Chain

STAKEHOLDER MAP

Six stakeholder
groups play
a pivotal role in
our business
Employees Community Shareholders & Investors Value Chain Partners Customers Environment

MANUFACTURING AND R&D REGIONS

1
MANUFACTURING LOCATIONS

1. Enschede, The Netherlands 2

4
2. Gyöngyöshalász, Hungary
3. Chennai, Tamil Nadu 7
4. Limda, Gujarat
5. Perambra, Kerala
5
6. Kalamassery, Kerala 3
7. Chinnapandur, Andhra Pradesh
2

R&D LOCATIONS
6
1. Enschede, The Netherlands
2. Chennai, Tamil Nadu

*Map not to scale

PROCESS

Our business
processes outline
the key activities
that are intrinsic to
our operations

Research and innovation Manufacturing Marketing and distribution

at R&D locations in Asia at plants in Asia in USA, Europe, the Middle East, India
and Europe and Europe and other parts of Asia

20 Apollo Tyres Ltd Annual Report 2020-21 21

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Value Creation Model

CAPITALS INPUT OUTPUT CONTRIBUTION TO SDGs

Financial ₹11.90 Bn ₹114.43 Bn ₹41.98 Bn ₹24.47 Bn ₹27.97 Bn

Capital Capital Expenditure Capital Employed Net Debt (consolidated) Cash generated by Consolidated
Outflow (consolidated) (consolidated) (as on FY21) operating activities operating profit
(as on FY21) (as on FY21) (consolidated) for FY21 (EBITDA excluding
other income) for FY21

Human 18,734 Safety Culture Apollo Virtual 31% 98,935

Capital Total workforce
Across the operations Academy Reduction in Lost Time Accident prevention
as an enabler For promoting Learning opportunities were identified
(as on FY21) Injury Frequency Rate
and Development 56% higher than the last year
over FY20

Social and ₹129.91 Mn Sampark 2 Apollo Partnership Nearly a 80% 68

Relationship CSR Spend in FY21 A digital platform to Pact [APP]
million APP Endorsements Dedicated
Capital conduct all business For Preferred Upstream
CSR beneficiaries
upstream raw material CV zones
transactions Suppliers suppliers

Intellectual 420 ₹893.28 Mn 22 ₹375.95 Mn

Capital Skilled R&D Workforce Research & Development Patents filed in FY21 Intangible assets worth
allocated capex (standalone) in FY21
(consolidated) for FY21

Manufactured 7 2 ₹145.24 Bn Installed Capacity (MT)

Capital Operating sites across Dedicated R&D Property, plant and • LIMDA: 199,433 • CHINNAPANDUR:

100+
the globe Centres equipment (consolidated) • CHENNAI: 301,556 21,163
(as on FY21) • PERAMBRA: 110,508 • HUNGARY: 56,376
• KALAMASSERY: 41,763 • ENSCHEDE: 59,623 Countries Served

Natural 583,321 MT 4,969 TJ 5.19 Mn m3 7.35 Lakhs Over

Capital Of Raw Material Of energy consumed Water consumed tonnes of CO2 eq 21,000 MT
Consumed in operations Total GHG footprint Of solid waste generated

22 Apollo Tyres Ltd Annual Report 2020-21 23

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

The Value Creation endeavours of the Company has

created the following outcomes across the Capitals.

FINANCIAL CAPITAL HUMAN CAPITAL SOCIAL & RELATIONSHIP CAPITAL INTELLECTUAL CAPITAL MANUFACTURED CAPITAL NATURAL CAPITAL

• Launched Apollo Virtual Academy for

global employee engagement and learning
Community Products Environment
1.50 & development, with 23 in-house and live
Commercialised ₹13.15 Bn
Net debt to EBITDA global (Refresh@Apollo) webinars hosted, Depreciation and
excluding other income and 38 virtual online self-paced courses Amortization
(ratio) (consolidated) offered ₹1 Mn + 34 83 (consolidated) in FY21
Women beneficiaries earned PCR Domestic Export
through mask production
7 1 696,464 m3
• Recognition by Ministry of Health TBR Domestic Export Total water
• ADMIRE programme, focused on sales recycled/reused
and Family Welfare for efforts on TB
₹5.68 2 ₹7.1 Bn
capability development attended by
Eradication
frontline field sales managers, and Winning
Earnings per share with Customers & Apollo ONE designed to • Received an appreciation from Haritha Two Wheeler (2W) and Three Depreciation and
(consolidated) enhance managerial and functional skills. Kerala Mission, Kerala Government for Wheeler (3W) Domestic Amortization
Mangrove Conservation (Standalone) in FY21
14 3
OHT/ TBB Export 7,248 MT
Domestic Total recycled
material used
0.37
• Speak Up for safety programme reached out

Net debt to Equity

to workers on one-on-one basis as part of
micro learning programme. 215,248 Safety Value Chain Intellectual ₹1.17 Bn
Property
Impairment of fixed
(ratio) (consolidated) contacts were made successfully.
assets in FY21
• Close to 250 AVK/ ARD and more than
• Patents filed in FY21
1000 REDs in the rural network
36,795 GJ
22 Nos (total 181 active
• Exclusive rural engagement patents across geographies)
3.3% • 65,590 behavior observations made on the
shop floor to strengthen the safety culture,
vehicle - Apollo Vikas Kendra
• Design registrations in FY21
Total energy
saved in FY21
Return on Equity
₹11.90 Bn
29% higher than last year. 44 Nos (total 193 designs
(consolidated)
across geographies)
Capital Expenditure
• Trademarks filed in FY21
Outflow (consolidated)
12 (approx. 1000+ active
in FY21
• Risk-based training introduced in Customers trademarks across geographies)
Credit Ratings FY21. 18,140 training man-days across
manufacturing operations, 15% higher than
24,500 tonnes
CRISIL AA+/
Stable for Long term
last year.
• Apollo Quick Service and AQS Lite caters
nationally with 915 centres in FY21 Research of CO2
Total amount of
CRISIL A1+ for Short term
• Diversity is critical on our People
• Dedicated Commercial Vehicle Zones Collaboration GHG sequestered
in FY21 - 68
Pillar, focusing on provision of equal
IND AA+/ • Global R&D centre Chennai is now
Stable for Long term opportunities and increasing women • 50 CV Zones certified by third-party for
an approved Research centre of
participation. 21% of workforce is standardisation for better safety and
IND A1+ for Short term IIT Madras
women in Hungary. hygienic environment

• Total 550 digital activities and 50

influencer activities conducted in FY21
as a part of Apollo Tractor Owners Meet
[ATOM] in FY21

24 Apollo Tyres Ltd Annual Report 2020-21 25

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Interconnectivity between Capitals

At Apollo Tyres, we consider our capitals as stocks

of value that interact with each to other to deliver
larger stakeholder and organisational value.
As they interact, they result in key trade-offs,
which we strive to optimise.

Interlinkage of Interlinkage of Interlinkage of Interlinkage of Interlinkage of Interlinkage of

Financial Capital Human Capital Social and Relationship Intellectual Capital Manufactured Capital Natural capital
with other capitals with other capitals Capital with other with other capitals with other capitals with other capitals
Financial capital stock is utilised The Company’s human capital stock is capitals The Company builds its intellectual The manufactured capital stock gets The conservation and efficiency
to build on other forms of capitals. positively impacted when it invests in capital stock through investments positively impacted with the Company’s initiatives align to conservation of
The Organisation invests proactively in
These in return help in contributing skill development initiatives to improve in state-of-the-art R&D facilities strategic focus on growth projects. Natural Capital. This in turn, also
developing its social and relationship
to the financial capital itself, the technical know-how for better together with skilled human resources. Increasing capex on manufacturing helps in improving the Financial
capital stock. This translates into build
and Manufactured and Social & operations. This also benefits the This also augments the rise in plants to access domestic as well as Capital stock. The Company focuses
up in financial capital and natural
Relationship capitals. individuals with career enhancements, Manufactured and Human capitals. global markets impacts financial capital on state-of-the-art operation and
capital stocks over the long term.
and increasing growth prospects, The products developed through and natural capital in the near term. R&D to build manufacturing and
thereby increasing intellectual capital innovation and collaborations with The enhanced manufactured capital in intellectual capital stocks which in
stock as well positively impacting the other institutions consequently terms of new products across segments turn cater to a positive natural capital
financial capital stock by enhanced translate into positive build up will help in achieving growth in market stock. To further reduce impact on
profitability. in financial, natural and social & share. This shall eventually help in natural capital, the Company invests
relationship capitals. building the financial and social & in community development projects
relationship capital. like Environmental Protection thereby
increasing social & relationship capital
through generation of common natural
assets.

26 Apollo Tyres Ltd Annual Report 2020-21 27

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Our ESG
Governance Sustainability
31 Drivers for Sustainability
Roadmap
31 Sustainability Committee
to build oversight 2025 defined

Performance
32 Sustainability Roadmap 2025
32 Framework for Sustainability
35 Policy Framework for
Seamless Governance

At Apollo, we believe in a long-term approach to business.

Environment
37 Raw Material Footprint 13.4%
Hence, we accord equal importance to both financial and 37 Energy Performance Water recycled
non-financial parameters that contribute to our overall growth 38 Sustainable Water Use
or reused in FY21
and business viability. While considering the non-financial 38 Climate Adaptation and
Promoting Biodiversity
parameters, we evaluate our performance across the three 39 Prevention of Pollution
facets of Environmental, Social and Governance (ESG). 39 Beyond the Fence

Social Nearly a million

Approach NOTE: This report covers
information pertaining to the 41 Customers - Central to Existence CSR beneficiaries
Apollo Tyres has developed its own period from April 1, 2020 to March 44 Value Chain - Partners in Progress
31, 2021. The scope of the report

80%
Sustainability Management Framework
includes Apollo Tyres’ European 48 Engaging with Communities
(SMF), aligned to the global standard of operations including Enschede, The
Netherlands and Gyöngyöshalász, 54 Performance against Sustainable
ISO 26000 on Social Responsibility. Development Goals
Hungary; and APMEA operations
The sustainability performance is including Chennai, Tamil Nadu;
presented through a stakeholder lens Limda, Gujarat; Perambra and
56 People - The Inner Core Raw material
under the three pillars of ESG.
Kalamassery (leased unit), Kerala;
and Chittoor, Andhra Pradesh.
suppliers
endorsed APP

58 Being Future Ready

28 Apollo Tyres Ltd Annual Report 2020-21 29
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Governance

Apollo Tyres has invested in processes guided by forward-looking policies to

build an Institution of Tomorrow. Over the years, the Company has created a
solid foundation where values of ethics, integrity and purpose are deep rooted.

Drivers for Sustainability

Apollo Tyres has always believed that sustainability is not This is further manifested through its well-developed and
just a ‘good to have’ but a ‘must have’ attribute for any implemented Sustainability Management Framework. The
organisation aspiring to generate continual value for its framework has supported the integration of sustainability
stakeholders. With this value proposition, the Company has into all levels of the corporate strategy, business model and
taken a framework approach to deep root sustainability value chain.
principles into its core operations and business goals.
In its efforts to make sustainability performance a core
In the reporting year, the Company strengthened its
business objective, the Company started to submit its
commitment to pursue sustainability by re-looking at its
disclosures based on international guidelines from 2010.
review mechanisms, assessing emerging challenges in
These disclosures have been instrumental in assessing the
domains like climate induced risks and setting a roadmap
actual performance, setting benchmarks and supporting
on sustainability for 2025.
continual improvement towards a better growth trajectory in
The Company’s sustainability strategy outlines its all domains of the triple bottom line – social, environmental
inclusive growth approach by syncing with environment and financial.
conservation, social prosperity and economic well-being.

Sustainability Committee to build oversight

The Sustainability Committee, with representations of the oversight on sustainability issues of critical significance
senior members of the Management Board, is a conduit and guide the Company towards achieving sustainability
between the Board and the Company. It serves to provide objectives. The committee is responsible for setting up an
overall vision.

The key responsibilities of the committee are enumerated below:

For an Enabling
01/ 02/

Manage sustainability Develop strategy

statement and and implement
framework priority/focus areas

Ecosystem
03/ 04/

Review sustainability risk Identify focus areas

register or framework and fix overall targets
in the roadmap

At its core Apollo Tyres has a robust governance model 05/

that acts as an enabler to realise far-reaching outcomes Allocate required
with a strong sense of purpose. resources for achieving
projects/objectives

30 Apollo Tyres Ltd Annual Report 2020-21 31

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Governance
Out of the seven core subjects listed under ISO 26000:2010, Subjects adopted by Apollo Tyres
Apollo Tyres has adopted five, addressing 23 issues

Sustainability Roadmap 2025 01 02 03

The Company has defined its Sustainability Roadmap 2025 Community Involvement Fair Operating
with six key focus areas:
Labour Practices
& Development Practices

• Employment and employment • Community involvement • Anti-corruption

relationships • Employment creation • Responsible political involvement
• Conditions of work and social and skills development • Fair competition
protection • Wealth and income creation • Promoting social responsibility
• Social dialogue • Health in the value chain
Combating Working towards Establishing Building a Fostering a Engaging with
• Health & Safety at work • Respect for property rights
Climate Change Circular Economy Sustainability Responsible People Centric Communities
• Human development and training
Governance model Value Chain approach
in the workplace

Action plans are being drawn for each of these focus areas to achieve tangible outcomes by 2025.

02
COMMUNITY 03
INVOLVEMENT AND FAIR
DEVELOPMENT OPERATING
PRACTICES

Framework for sustainability 01

LABOUR
04
Apollo Tyres adopted ISO 26000:2010, an International The standard states seven areas, referred to as ‘Core PRACTICES 7 CONSUMER
Standard on social responsibility, to develop its Subjects’, which any organisation should consider
CORE ISSUES
Sustainability Governance Model. developing a socially responsible entity.
SUBJECTS
07
ORGANISATIONAL
GOVERNANCE 05
ENVIRONMENT
06
HUMAN
RIGHTS

04 05

Consumer Issues Environment

• Fair marketing, factual and unbiased information • Prevention of pollution

and fair contractual practices • Sustainable resource use
• Protecting consumers’ health and safety • Climate change mitigation and adaptation
• Sustainable consumption • Protection of the environment, biodiversity and
• Consumer service, support, complaint restoration of natural habitats
and dispute resolution
• Education and awareness

32 Apollo Tyres Ltd Annual Report 2020-21 33

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Governance

RISKS AND MITIGATION FAIR OPERATING PRACTICES Policy Framework for

The Company has in place a robust risk management Apollo Tyres’ business dealings involve the relationships Seamless Governance
framework that identifies and evaluates business risks and The Company’s risk management between the organisation and its partners, suppliers,
opportunities. The Company’s risk management processes framework operates with the contractors, customers, competitors and associations The Company is guided by appropriate publicly stated
focus on ensuring that these risks are promptly identified, wherein it holds membership. As a responsible organisation, policies to address the needs and expectations of its
following objectives:
and a mitigation action plan is developed and monitored it identifies, adopts, and applies standards of ethical spectrum of stakeholders. Some of the policy provisions
periodically to create sustainable growth. behaviour appropriate to its purpose and activities. are highlighted below. All the policies are available on the
company website.
Sustainability risks are identified through formal and Proactively identify and highlight risks The Company has been able to sustain productive
informal interactions with the stakeholders, and mitigation to the right stakeholders relationships with organisations because of its responsible Read more on our
plans are developed. The risks are prioritised and reported business practices. Its values are key to the way its Sustainability statement:
to the Board each quarter. employees work and interact with customers, suppliers Guiding framework for the company formulated
Facilitate discussions around risk
and colleagues across the business. The Code of Conduct
prioritisation and mitigation
sets out key policies that outline the standards and
behaviours that help to shape and strengthen the
Provide a framework to assess risk organisational culture.
capacity and appetite; develop systems
to identify any red flags Anti-corruption
Apollo Tyres has a zero-tolerance approach towards
corruption. It is in compliance with all applicable legal and
regulatory requirements and has formulated a Code of
Conduct for all employees along with a vigil mechanism
through Whistle Blower Policy to deal with instances of
unethical behaviour, actual or suspected, fraud or violation.
The functioning of the whistle blower mechanism is
periodically reviewed by the Audit Committee of the Board.
There are laid down procedures in reporting breaches of the
Code of Conduct.

Fair competition
Apollo Tyres considers its vendors as long-term business
partners. It is committed to conducting business affairs
in a fair and ethical manner that promotes open and fair
competition in its best interests and its business partners.
The Company has been proactive in ensuring compliance
with all applicable laws, rules and regulations laid down.
It has developed a Competition Compliance Manual to
prevent engaging in anti-competitive behaviour and
conducts employee awareness on legislations related to
fair competition through regular e-mailers, newsletters,
trainings, meetings and manuals.

Task Force on
Climate-related
Financial Disclosures
(TCFD)
Assessment conducted in FY21

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Environment
Apollo Tyres has long considered the environment as one of its most influential
stakeholders. The need to operate in complete harmony with natural systems is
conspicuous in the various initiatives and innovations taken by the Company.
These are aimed at a better future for all stakeholders and a reassurance to Earth –
that we are Partners.

Key aspects while delivering on environmental stewardship:

Raw material Energy Water Climate and carbon Waste

Raw Material Footprint Energy Performance

The three main constituents used for manufacturing tyres Apollo Tyres utilises a mix of renewable and non-renewable
are natural rubber, synthetic rubber and carbon black. fuel types to meet its energy requirements. In its India
These constitute a major part of the raw material while operations, the main source of direct energy continues to be
there are some other materials required to complete coal, while in Europe the main fuel is natural gas. It has also
the raw material requirement. The total raw material invested in renewable energy like solar and wind power as

Operating
consumed in the operations in FY21 stood at 583,321 MT. direct energy sources.

Share of Raw Material Share of Direct and Indirect

Consumed in FY21 [%] Energy Consumed, FY21 [%]

Within the
31
33 33

Ring of Nature
Natural Rubber
Carbon Black 69
11 Synthetic Rubber Direct Energy

23 Other Raw Materials Indirect Energy

True awareness of the limits of nature has augmented 7,248 MT 4,969 TJ

the Company’s philosophy to innovate for a better Total recycled material Total energy consumption (from both direct
environment. Each tyre rolling out of the manufacturing and indirect sources) for the reporting year
site represents the Company’s commitment towards a
‘sustainable habitat’ for all.

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Environment

The Company has been making efforts to achieve energy Climate Adaptation and
efficiency through improvements in its process design,
conversion and retrofitting of equipment and use of
Promoting Biodiversity
energy-efficient equipment. There were several initiatives
Climate adaptation is one of the key considerations in the
that were undertaken during the reporting period resulting
automobile industry. As an important representative of
in 36,795 GJ of energy savings.
the automotive industry value chain, Apollo Tyres has been
working on this aspect within its zone of influence. The
Company has been measuring and monitoring its carbon
footprint. To promote a climate conscious manufacturing
setup, the Company has invested in renewable energy as
well as various energy saving initiatives.

Climate adaption through energy conservation

A substantial reduction of water consumption has
been achieved for both PCR (11.5%) and TBR (10.5%)
tyre production. Nitrogen curing technology has been
implemented in the new tyre plant to reduce further water
Sustainable Water Use consumption. A new process to ensure a uniform cure across

Prevention of Pollution
21,142 MT
the tyre, consistent durability and energy saving has been
introduced. The Apollo Mixing Technology concept has
The primary source of water at the operations is surface
helped increase efficiency in manufacturing by 15% and
water. Other sources included ground water and municipal
water.
extrusion by 20%, thereby saving energy. Apollo Tyres strives towards improving its environmental Total solid waste generated
performance by reducing pollution including emissions in the reporting period. Additionally,
The APMEA operations carried out several initiatives to reduction, water management, waste management,
conserve water. Some of them are enumerated below: Carbon Emission Profile FY21 [tCO2 eq] usage/ disposal of toxic and hazardous chemicals and other
107 kilolitres of liquid hazardous waste was
identifiable forms of pollution. Manufacturing operations also generated in the reporting year.
• Increased reuse of rainwater in the process use state-of-the-art technology to ensure cleaner
• Automatic make up water system for domestic water usage operations.
• Condensate recovery system from steam trap drains 312,633
• Ultrafiltration unit installed to treat ETP Final Water for
Reusing as plant soft water Solid Waste generated
89,291
• Ultrafiltration water treatment for STP by type, FY21 [%]

9.5
Break-Up of Total Water Usage in Scope 1

terms of Recycled Water and Fresh 333,943

Scope 2

Water Withdrawal, FY21 [%]

Scope 3

The carbon footprint has been externally assured by an

13.4 independent 3rd party. The assurance statement is a part
of the Sustainability Report.

During the fiscal, the Company undertook a detailed

90.5 Hazardous
Non Hazardous
climate risk assessment as per the Task Force on Climate-
related Financial Disclosures framework. The Company has
also been reporting to the Carbon Disclosure Project on
86.6 climate change to better respond to the growing needs of
its stakeholders for information related to the Company’s
Withdrawal
preparedness in addressing climate-related impacts.
Recycle
With a view towards enhancing the biodiversity quotient
Beyond the Fence

696,464 m3
within the fence, the Company’s environment programme
The Company partners with like-minded institutions and corporates to promote water
HabitAt Apollo has designed and implemented several
stewardship, waste management and conservation of biodiversity in communities through
activities within the plants including maintaining existing
various initiatives. These are detailed in the Social section of this report.
theme gardens such as butterfly garden and snake repellent
Total recycled or reused water which was plant belt in Kalamassery plant or Apiculture from rubber
13.4 % of total annual water withdrawal trees within the premises at Perambra plant and organic
farming project at Limda, Gujarat.

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Customers – Central to Existence

Customer-centricity has always been critical to Apollo To ensure customer delight, the Company is working on
Tyres. Listening to customers to understand their concepts like Apollo Tyre Service Centre and to doorstep
requirements and identify efficient solutions has been one delivery of services with service tractor in rural areas.
of the greatest strengths that has made the company a
preferred brand over the years. Apollo Tyre Service Centre: Increasing the ease of service
and facilitating customers with a faster resolution with spot
In the tyre industry, beyond quality and a competitive
complaint settlement including tyre replacement. Coupled
price, quality of services also plays a key role in enhancing
with additional tyre services at these centre is helping the
customer loyalty. Customer loyalty begins with the quality
Company create customer delight.
of the products and the quality of services plays a key role
in the engagement levels with the customers. In line with
Service Tractor: The Company has started
the perspective, the Company has realigned its approach to
doorstep services in rural to improve uptime.
customer relationship management into two broad themes –
Customer Care and Transparent Communication.

Enriching and
Apollo Quick Service: Complaints are registered at a single
point of contact – Apollo Customer Care and distributed to
CUSTOMER CARE
nearest dealer to the customer based on pin code mapping.
Safety a priority
The Company lays emphasis on customer safety while Customer engagement
designing and manufacturing the products. It strives to Apollo Tyres continuously engages with its customers

Empowering
provide its customers with a product that is safe, reliable through different forums to gather inputs and suggestions
and efficient, and at the same time has minimum impact on utilised to serve them better. The Company has set in
the environment. These are ensured through a combination place multiple initiatives to capture customer feedback.
of rigorous systems,procedures, adhering to all applicable These include the ‘Voice of Market’ programme which gets
norms and standards and as per the tyre application feedback from touch points like Fitter, Retreader, Casing
recommended by the Company. Products are labelled Dealer, Drivers. ‘Load and Fitment’ studies which provide a

a Prosperous
giving sufficient information to the customers regarding the comparative insight against peers on product parameters
product safety enabling them to make informed decisions like fitment share, brand of choice, current loading trends,
in addition to ensuring compliance with applicable rules and usage practices by customers on various tyre brands, etc.
legislations. Further, the Company gets feedback on its products and
services through its dedicated customer service team and
The Company conducts periodic investigations at each
its Apollo Customer Contact Centres.

Society
stage of the product lifecycle to ensure that the product is
safe for use. It also educates dealers and consumers on the
Commercial vehicle (CV) zone:
proper use of products.
The Company is expanding its CV Zone centres to cater
to the need of truck wheel alignment promoting safety
Customer delight - a lasting commitment
culture. A total of 68 centres are operational in FY21.
The Company invests in customer service function –
equipping it with specialised knowledge on products, To standardise the services and to ensure safety and
technical expertise and commercial understanding to hygienic environment to both visiting customers and
provide value added services to its customers. serving staff at the CV Zones, the company started its
journey of TUV SUD certifications across CV Zones.
The existence of a broad spectrum of stakeholders with Apollo Tyres constantly works towards improving its
products. Regional Inspection Centres set up across India
The certification process has been completed at 50 CV

varied expectations is our biggest propeller towards carries out checks on returned products. The insights
zones in the reporting period.

growth. Each day we step up our efforts to match their gained are shared with the manufacturing and R&D teams
for improving the quality of the products and minimising
aspirations and create shared prosperity in the process. wastes. Further, customer complaints help the Company
to better align products/services to customers’ interests.

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TRANSPARENT COMMUNICATION INNOVATION

There is a strong emphasis on innovation to provide Renew and restore

Apollo Tyres 360˚ Customer Approach customers with world-class products. The Company has There is a focus on using bio-based, eco-friendly and
positioned its R&D as a critical function catering to varied renewable materials to prevent resource depletion.
demands of the consumers. There is a dedicated R&D To further protect the planet and its resources, the
Apollo Certified Fitter (ACF) Apollo Radial Service Assistance (ARSA) Apollo Radial Repair Centre (ARRC) department with 420 skilled, experienced and technically Company is collaborating with ISCC certified partners
A fitter engagement and welfare An initiative to engage with customers to An initiative to motivate and equip qualified employees. The Company’s Global R&D Centre with the latest sustainable technologies that allow for an
initiative to educate customer to follow optimise operational efficiency in their dealers to support customers by in Asia is an approved Research Centre of IIT Madras and increase in bio-based and recycled content in high-quality
recommended fitment practices, fleet. A technically trained and qualified repairing damaged tyres, instead of Anna University Chennai. The Company has also sponsored raw materials. This approach prevents waste generation
inflation pressures for tyre longevity and person is allocated to the fleet for scrapping them. “Sustained the touch doctoral students at various IITs, BITS, MG University, and reduces the emission footprint of raw material, The
using right tools and safety measures. standard checks like vehicle inspection, point and initiated internal audits for etc. Several scientists working in R&D are registered for Company is committed to protecting the environment,
Sustained the touch point and initiated scrap tyre inspection, inflation and better customer service experience”. PhD programmes at multiple universities. In Europe, the health and safety of the society by complying with all
internal audits for better customer other routine work which leads to an Centre has numerous affiliations with research institutes applicable laws.
service experience. The organization enhancement in operational efficiency and dedicated close partnerships with suppliers focused on
has increased its network of Apollo by 15-20%. “Sustained the touch point innovative and sustainability projects. Towards a circular economy
Certified Fitters from 390 in FY20 and no and initiated internal audits for better In the last few years, Apollo Tyres has taken significant
As part of sustainability strategy, the Company has
expansion due to COVID this year. customer service experience”. steps to increase the use of recycled ELT products and
committed to the objectives of the European Green Deal,
reclaiming powdered rubber crumb.
by the introduction of increased bio-based and recycled
Apollo Quick Service (AQS), Apollo Tractor Owners Meet (ATOM) Apollo Direct (Contact Centre raw materials, and reduction of substances of concern in its
Compliance with global regulations
Tubeless Service Point (TSP) Management) products.
A farmer engagement and welfare In support of OEM customers for complying, further
A programme to provide quick redressal initiative to educate tractor owners in A dedicated customer care service The Company’s R&D is at the forefront of this with compliance to other chemical restrictions like REACH, SOCs,
to customers, like complaint redressal tyre care and repair. Dealers, franchisees, centre for grievance redressal. It is open numerous initiatives to enhance product performance, use POPs, PFOA,TSCA, California Prop65 is strictly adhered to.
at business partner counter only. Also fitters and retreaders are invited to all seven days of a week and addresses of renewable material and creating safer, sustainable tyres.
extended service reach in the name of training sessions. Total 550 nos digital queries and complaints in English and
AQS Lite at OEM Franchisee ( M&M and activities and 50 influencer activities regional languages. Customers are Performance
TAFE) at selected outlets with partial conducted during times of COVID. encouraged to approach us with their The Company achieved a low rolling resistance of 5.4 kg/t
empowerment. Added 139 AQS Lite and query, feedback and grievances. concept OEM tyre, containing the latest components and
347 AQS centres in FY21 and now it is tyre construction technology. Additionally, all summer
915 to nos., nationally. Extended our products have A label graded and A/B level grade for
service during the pandemic situation. winter and all-season products for wet grip performance.
The targets set for the coming five years will be mainly be
focussed on the further improvements of rolling resistance,
Customised solutions to Passenger Vehicle (PV) commercial fleet owners grip and wear performance.
The core purpose of this activity continues to engage PV commercial fleet owners. During the fiscal, the Company
conducted 1,057 activities with PV commercial fleets across the geographies. The campaigns were focused on customer
engagement and safety trainings including areas like minimising operational tyre failures. Importantly the campaigns
focused on product information on Amazer 4G Life like helping them understand benefits of the product and how to reduce
operational costs.

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Value Chain - Partners in Progress

The value chain approach has become a significant factor in
The Apollo way becomes the guiding principles of the
embedding sustainability principles across all stakeholders.
sustainable procurement agenda:
Globally, corporates are increasingly including the entire
value chain as a coherent mass in their quest to standardise
1. Driving through governance, transparency
processes and maximise growth opportunities.
and accountability.

RAW MATERIAL SUPPLIERS 2. Enhanced usage of recycled and renewable raw materials
in our products including encouraging RM supply chain
Apollo Tyres has a centralised procurement function with
partners in increasing the content of their recycled &
offices in India, Singapore, and The Netherlands, through
renewable raw materials in their manufacturing processes.
which it is able to work efficiently with its global suppliers
based in Asia, Africa, Europe and USA. 3. Striving towards the highest environment, health & safety
standard in the raw material vendor partner’s manufacturing
Sustainable Procurement processes and operations and to work towards applicable
In line with the Company’s sustainability vision, Apollo Tyres certifications in their respective industries.
continuously works towards achieving sustainability across
4. Integrating international and domestic standards on Human
its operations and value chain. This is done by adopting
Rights as applicable within the raw material vendor partner’s
sustainable procurement policies and by ensuring the
operations.
partners’ participation in promoting sustainable practices
Purchasing Guidelines Green procurement
in the raw material supply chain. 5. Ensuring compliance of international norms on decent work
With a view to promoting lower carbon footprints, logistics Apollo also promotes and encourages suppliers to
agenda and encouraging our ‘One Family’ culture in the raw
In-line with efforts towards sustainability, the Company is costs and supply proximity to the manufacturing locations, embrace environment friendly and green materials in their
material supply chain.
working with the Global Platform for Sustainable Natural the Company encourages sourcing from domestic suppliers, production and packaging processes including usage of
Rubber (GPSNR) promoted by the World Business Council 6. Work on Natural Rubber Sustainability in line with the other factors being equal. The Company continue to work recycled products.
on Sustainable Development (WBCSD), to contribute to the GPSNR guidelines to drive improvements in the Social, on developing import supplier partners as alternate sources
improvement of socio-economic factors in natural rubber Economic and Environmental performance of the Natural of supply and for technical partnerships. REACH Compliance and other regulatory requirements
supply chain. Rubber supply chain. In order to meet the obligations under REACH compliance
Apollo Tyres mandates from its partners to certify
for import into EU, Apollo is geared up to meet all
7. Driving continual improvement in sustainable procurement compliance of their environmental systems to ISO:14001
requirements, as applicable. It is ensured that the raw
agenda in the raw material supply chain. by an accredited third party.
materials sourced are free from chemicals and substances
which impact environment adversely (SVHC – Substances of
Apollo Partnership Pact (APP)
Very High Concern).
Supplier partners are expected to comply with Apollo’s
Partnership Pact (APP) and integrate environmental, Apollo is also geared to meet all raw material related
occupational health & safety, human rights and labour requirements with reference to usage of PAH free materials
policies into their business and decision-making processes. and tyre labeling requirements for the supply of tyres to
To date, more than 80% of the upstream supplier base Europe and other markets.
has signed the Apollo Partnership Pact to pledge their
compliance. Safety @ Suppliers’ Workplace
Apollo Tyres encourages suppliers to follow all applicable
Digital Initiatives in Procurement industrial practices to ensure safe operations. The
Apollo Tyres has introduced an online supplier portal for the programme initiative was continued in the Upstream Supply
day-to-day operational management of purchasing and Chain this year using the virtual collaboration platforms
vendor quality management processes with its suppliers. with the RM suppliers, thereby leveraging IT for a deeper
reach in the supply chain.

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Supplier engagement • Apollo Global Partners’ Summit
ENGAGEMENT WITH DEALERS
The joint engagement with suppliers exists in various Apollo successfully conducted its Global Partners’ Summit
spheres of working through the following supplier 2020 virtually with its global Raw Material Partners this The Company endeavours to enhance the business Customer Hotline for tyre requirement
framework: year. The summit conducted through the virtual medium was processes to offer best-in-class service to its business under essential services
a maiden attempt this time by Apollo Tyres team going the partners. Apollo Tyres has formed a Management Advisory During the lockdown in the pandemic, the movement of
• New supplier selection digital way. Committee of Business partners with a view to gathering essentials such as tractors, ambulances came to a halt due
A stage-wise evaluation and approval process involving constructive market feedback for improvement. to tyres requirement. The Company launched the ‘customer
commercial and technical evaluation of the supplier. • Vendor Quality Meets hotline’ for essential services through its business partners.
Furthering the journey towards enhancing service level
Vendor Quality reviews were periodically conducted with the
for business partners, the Company has introduced three
• Joint development projects RM suppliers to share feedback and identified opportunities Medical care for business partners
robust IT enabled platforms. These are Business Partner
Joint development projects and technical collaborations for improvements and closure of action points with regards The Company has been working with the business partners
Service Centre, a solution for all business transactions,
exist through Technical Seminars & Technical Leadership to product and supply improvement at Apollo plants. and extending all help during the pandemic. Tie ups have
queries, benefits & grievances; Sampark, a 24 by 7 digital
Development Programmes with the raw material suppliers. been made with various doctors and medical professionals
platform for dealers to do all business transactions; and
• Corporate Social Responsibility in Supply Chain to provide free of cost consultation to its Rural Business
Sampark-2, a technology-enabled distribution system for
• Supplier audits and periodic assessments The Company runs a CSR programme at the premises of its Partners. The Company has also introduced a policy to
last-mile connectivity.
Supplier audits and assessment are conducted periodically raw material suppliers to support good health and covers reimburse COVID-19 vaccination cost for the business
by a qualified team of trained auditors at the time of awareness programmes such as HIV / AIDS Prevention and partners and their families.
selection of new suppliers and for existing suppliers as per the ill effects of Substance Abuse. During the current fiscal,
defined frequency and criteria. the initiative was run virtually with the upstream supply Expanding Footprint in rural India
chain which covered 3 supplier companies benefiting about Apollo Tyres has been a significant player in rural markets
Supplier performance evaluation is done on Quality, Delivery 50 participants. with close to 250 AVK/ ARD and more than 1000 REDs in
and Service performance aspects and communicated Easy to do the rural network at the start of FY21. With a vision to be
regularly to the suppliers. • Apollo natural rubber dirt free centres Business the leader in the rural footprint, it launched the ‘Apollo
Apollo Tyres has taken the lead in contributing to the quality Tyres Sarpanch’ initiative in March 2021 to enable it to have
• Apollo Vendor Quality Management Programme 5.0 improvement of natural rubber in India by setting up Dirt the widest tyre distribution network in the rural segment.
Apollo released an updated version of its Vendor Quality Free Centres where natural rubber sheets are sourced from The Company has been quite successful in adding a good
Manual 5.0 to the RM supplier partners. The initiative was the farmers and graded using international practices. number to its secondary network to the AVK/ ARDs despite
rolled out to the upstream supply chain partners to share the the restricted movement due to the pandemic. A total of
Apollo quality management system requirements and with over 4500 touchpoints in rural has been created.
a view to enabling the absorption of benefits of the quality
initiatives across functions in the supplier organisations. Apollo Value Club (AVC)
Service Dealer
The core objective of the programme has been to build a
Excellence Profitability
stronger bond through one of its core value of ‘One Family’
with the dealer network and their families.

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• Vision Care service is targeted towards addressing the diabetes and hypertension. At all the healthcare centres
vision related problems faced by the trucking community. (HCC), diabetes screening and blood pressure check-ups are
Identifying vision impairment as a major health threat to conducted.
the trucking community, Apollo Tyres initiated its vision care
In the reporting year, total of 33,114 people have availed
initiative in the year 2015. The programme provides doorstep
diabetes testing facility. Out of these 7,174 people were
solution for vision care problems. The organisation has
Engaging with Communities
identified as at risk of diabetes.
partnered with Essilor India Pvt Ltd (2.5 NVG) for providing
Also, there are other generic treatment facilities provided
affordable and sustainable vision care services to the
at each healthcare centre for ailments such as fever,
trucking community. Beneficiaries identified with refractive
Apollo Tyres is committed to the sustainable development Key highlights of the programmes in the cough, cold, flu and other basic first aid features.
error issues are provided with low-cost spectacles and
of its communities. The Company’s CSR approach stems reporting year are presented below:
cataract patients are linked with the nearby government
from its vision statement mentioning ‘continuously • Mobile Medical Units (Apollo Tyres Healthcare Express)
hospital for further treatment. In the reporting year 32,611
enhancing stakeholder value’. The CSR efforts resemble started to provide healthcare services to long-distance truck
HEALTHCARE FOR TRUCKING COMMUNITY people availed vision screening facility out of which 17,082
a steadfast focus towards promoting inclusive growth drivers who do not get the opportunity to visit the healthcare
people were identified with refractive error issue and 2,361
and improving the quality of life, in the regions where Linked with Sustainable Development Goal (SDG) -3: Good centres. The mobile medical unit provides its services at the
spectacles were distributed.
the company operates, strengthening relationship with health and wellbeing, preventive healthcare initiative for highways, district borders and trucking halt points. The main
communities. the truck driver community is a pioneering programme run • Tuberculosis Awareness and Treatment objective of this service is to provide doorstep healthcare
by the Company. Apollo Tyres has joined the ‘Jan Andolan’ for Tuberculosis facility for the trucking community.
The CSR programmes are designed to be in consonance
(TB) free India to contribute to India’s National TB
with the national development priorities as well as the To provide quality healthcare services to the mobile
Elimination Programme (NTEP) to meet the ambitious goal There are five mobile medical units (Apollo Tyres Healthcare
United Nations Sustainable Development Goals (SDGs). population, it operates 31 Healthcare Centres in the
of eradication of TB from India by 2025. The organisation Express) currently operational.
In addition to the social stakeholders, the Environment is transshipment hubs spanning across 19 Indian states. The
has partnered with USAID, The Union and Central TB Division
also considered a crucial stakeholder, hence Biodiversity programme provides healthcare services such as Prevention
for TB initiative. In the reporting year two webinars on the The Company also organises health camps (Sakushal
features as a global initiative with projects implemented and Awareness of HIV-AIDS, Vision Care, Integration of
theme of Partnership for Action against Tuberculosis (PAcT) Saarthi) for the benefit of the employees of its fleet owners.
in India, Hungary and The Netherlands. Tuberculosis and other Non-Communicable diseases such
were organised. The main aim of the webinar was to invite
as Diabetes, High Blood Pressure and General Treatment • Oral Hygiene service was introduced in FY20 . This was
The CSR initiatives are categorised under 4 themes, more corporates to join the partnership for TB elimination.
facility. mainly due to the feedback received from the truck drivers
details given below: The work in this domain has earned a recognition certificate
about their addictions like tobacco consumption (smoking
by the Ministry of Health and Family Affairs (MoHFW).
Services Under Healthcare Programme and chewing) and other substance abuse due to various
1. Healthcare for Trucking Community
reasons.
• HIV-AIDS Awareness and Prevention service Apollo Tyres has seven Designated Microscopy Centres
2. Solid Waste Management and Sanitation (SPARSH)
Among India’s millions of truckers, nearly half drive on long (DMC) at Agra, Gwalior, Guwahati, Mundra Port, Delhi, • Tele Medicine Consultation Service was introduced during
3. Livelihood for Underprivileged Women (Navya) distance routes and have been found to be at high risk of HIV Kanpur and Agartala location. Out of the total 7 DMCs, the COVID-19 lockdown period to provide uninterrupted
and other STIs. two in Agartala and Mundra Port were inaugurated in the medical consultation facilities to the trucking community
4. Biodiversity Conservation
reporting year. while keeping in view social distancing requirements. The
Under this initiative spectrum of services are offered tele medicine consultation facilities is available at all the
Additionally, to cater to the customised needs and i.e. Behaviour Change Communication (BCC), Sexually Total 3,659 people were screened for TB testing and total 31 healthcare centres with technical support of Telerad
expectations of the communities, the Company has special Transmitted Infection Treatment (STI), Counselling, 170 positive TB cases were identified. Out of these 151 Foundation, whereby an online consultation service with the
programmes for local initiatives spanning in 25-50 km Awareness through Peer Educators (PE), Condom Promotion, positive cases were linked to DOTS centre for TB treatment. doctor for the beneficiaries is conducted. Total 8,569 people
radius of the manufacturing locations. Additionally, the Integrated Counselling and Testing Centre (ICTC) support. were benefitted through tele consultation facility in the
• Diabetes and Hypertension
Company is also involved in philanthropic endeavours which reporting period.
Due to lifestyle issues, lack of awareness and access to
are implemented through the Taru Foundation. The Foundation delivers this service through staff and Peer
medical facilities, trucking community is more vulnerable and In the reporting year total 597,921 people were outreached
Educators (PE) or volunteers. PEs play an important role in
The Company has been fostering collaborations and at higher risk of getting non-communicable diseases. During from awareness activities which was 18% more from FY20.
creating awareness about health services and referring the
partnership through the Apollo Tyres Foundation for the OPDs, an increase in diabetes and high blood pressure The major reason for increased outreach has been the
beneficiaries to healthcare centres due to their local connect.
reaching out to an expanded base of beneficiaries. cases amongst trucking community was an alarming focused 15 days TB awareness and testing campaigns
sign and therefore the organisation started screening of organised across locations twice in the year.
So far, the programme has mobilised about 1,021 active PEs
across its locations. Periodic training and capacity building
workshops are organised with peer educators to cascade the
health awareness message within the trucking community.
During COVID times, virtual training sessions were organised
for PEs and communities to push the awareness messages
related to protocols.

Total 26,822 people were tested for HIV during FY21 out of
which 49 people were identified as HIV positive. Of these
positive cases, 19 were linked with ART centres for HIV
treatment service.

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SOLID WASTE MANAGEMENT & SANITATION With a view to providing access to sanitation, the
Company has constructed toilet cum bathing space
India faces major environmental challenges associated
for the underprivileged communities around Chennai
with waste generation and inadequate waste collection,
manufacturing location. It has constructed 50 toilets cum
transport, treatment, and disposal. To address the issue of
bathing space in Chennai in the reporting period. Around
Solid Waste Management and supporting the Clean India
200 people have been directly benefitted from these
campaign, the company launched SPARSH programme in
constructed toilets.
2013. This initiative is linked with SDG 6: Clean Water &
Sanitation, SDG 11: Sustainable Cities and Communities, The Company has constructed community toilets for the
SDG 12: Responsible Consumption and Production. trucking community at Agra and Delhi transshipment
hubs. Over 3,000 people have benefitted directly from the
SPARSH (Segregate waste, Practise composting,
community toilets.
Awareness raising, Recycle-reuse, Safe sanitation,
Hygiene for all) programme comprises of four initiatives: Apollo Tyres is also conscious of the perils of irresponsible
Clean My Transport Nagar (CMTN), Clean my Village disposal of used tyres. To reuse the discarded tyres, it has
(CMV), Sanitation Management and End of Life Tyres initiated ELT Playgrounds project. Play structures made
Playground (ELT). from tyres help the school kids in improving their agility and
fitness, and also sensitises them on the concept of reuses
The Company started Clean My Transport Nagar (CMTN)
and recycle. In the reporting year one such playground was
and Clean My Village (CMV) initiatives with the objective
constructed at Karanja Maharashtra location, making the
to improve the conditions of waste management and
total to 14 ELT playgrounds.
cleanliness of identified transshipment hubs and villages in
India. Under this initiative basic services like door-to-door
LIVELIHOOD FOR UNDERPRIVILEGED WOMEN (NAVYA)
waste collection, cleaning of roads/lanes, segregation
of waste, composting from wet waste and awareness The livelihood initiative addresses the Sustainable

6,500
generation are provided to the community. During COVID Development Goals (SDGs) SDG 5-Gender Equality and Achievements

Over
crisis also the waste workers (Nirmal brigade) were in the SDG 1: Poverty. This is a key area of our focus, given that The first achievement is launching the third edition of
forefront and continued their services. India still has the highest percentage of people living in ‘EkNaam…’ Symposium 2021 virtually. ATF, along with
poverty when compared to the world. This initiative is also Institut Francais (IFI) and CSRBox felicitated eight Change
In the reporting period, total 1,300 metric ton (MT) waste
aligned with SDG 8: Decent work and Economic Growth, as Women directly benefitted through Agents from across the country who have brought a
was collected. Out of which 95 MT was biodegradable
it provides income generation opportunity to the women at virtual engagement mode positive impact in their community, to commemorate the
waste and 1,205 MT was a non-biodegradable waste.
their doorsteps. International Women’s Day 2021.
Total 10,503 touch points were covered through door to
door waste collection. Over 2,500 people were reached To address the problem of poverty and poor social status These eight women, not only worked for their own
The outbreak of the pandemic, spawned innovative ideas
through awareness activities. of women in the community, Apollo Tyres has started skill empowerment and livelihood generation, but they also
for providing digital training to the beneficiaries and
building and income generation programme namely Navya, galvanised similar women from their own or nearby villages,
keeping the programmes operational. Over 6,500 women
for the women in the villages around its manufacturing providing income opportunities to them by forming self-help
directly benefitted through virtual engagement mode.
locations (they are agriculture and non-agriculture based groups or have brought social changes in their communities.

1,300 MT
initiatives). In the reporting year, 2,557 women were trained in
The campaign felicitated the winner representing seven
different livelihood activities and 897 women started
Under this, women are reached through Self Help different states including Kerala, Tamil Nadu, Maharashtra,
income generation activities to support their families.
Group (SHGs) or strengthening of existing SHGs. The Gujarat, Rajasthan, Odisha and Madhya Pradesh.
Total waste collected in main objective of this initiative is to create livelihood The biggest landmark of the programme was linking
reporting period This event was followed by a panel discussion on the
opportunities at doorstep and develop entrepreneurship women beneficiaries to various government schemes for
theme ‘#ChoosetoChallenge’. A month-long social media
capabilities of underprivileged women. livelihood generation. Total 3,133 women beneficiaries
campaign was organised to showcase the journey of the
and 9 income generation units were linked with
The women beneficiaries are trained and further linked chosen eight change agents.
government schemes. Total 108 SHG were linked with
with the market to enhance their income. As a result of this
banks for loan purpose. The second achievement has been the partnership with
initiative trained women have started their own business
NABARD for providing livelihood training and developing
where they are not only supporting their own families but Additionally, the programme also supports farmers by
enterprise for rural women under Rural Mart project at
also providing employment opportunities to other women providing them technical knowledge in improved farming
Waghodiya Taluka, Baroda. Under this project, women got
of their villages. practices and livestock care and management. The
opportunity to market their products from a centralised
farmers are trained in improved farming practices like
The programme also provides awareness to women place. With NABARD’s support, a shop (rural mart) was
fodder management, seed selection, organic farming,
beneficiaries about various government funded schemes, established at Waghodiya and total 15 underprivileged
cattle rearing and others. Farmers are also linked with
and supports them to avail those causing a multiplier women got direct benefit to showcase over 14 variety of
various government agriculture schemes. Over 721
effect. products. Additionally, 240 women also received training
male farmers benefitted through such activities in the
in agriculture and non-farm-based activities through
reporting period.
NABARD support.

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BIODIVERSITY CONSERVATION This initiative has not only helped in addressing climate Eco restoration of Ponds: The main objective of this
adaptation, but has also helped the beneficiaries in saving initiative is to improve the condition of water bodies, Corporate Responsibility in Europe
The Company has mapped this initiative with SDG 13:
costs associated with purchasing of conventional fuel. This restoring and enhancing the aqua biodiversity in Chennai,
Climate Action, and Goal 14: Life below Water. Blood donation camps: At the Hungary plant, the
helps women to spend more time in their livelihood activities. Limda and Perambra. Total 10 ponds, covering area of
Biodiversity conservation is the global theme for the Company organised 4 blood donation camps in the
3 lakh square feet have been restored through pond
company, wherein various projects are undertaken in At Enschede, The Netherlands, the Company has reporting year. It partnered with the Heves County
deepening, desilting, bunding and maintenance activity.
India and The Netherlands. undertaken Revitalisation of the City Stream Organization of Hungarian Red Cross and the
(Stadbeek Project). The project is in partnership with Hungarian National Blood Transfusion Service. Over 240
In India, Mangrove conservation is the main initiative, At Baroda, the Company supports government’s pond
Enschede Municipality and European Union. The objective employees donated blood.
implemented at Kannur district of Kerala. Mangroves are deepening initiative under Sujalaf Sufalam Jal Sanchay
of this project is to address issues related to flooding from
remarkably diverse and important ecosystems that keep Abhiyan. The scheme focuses on deepening of lakes, pond,
rainwater and groundwater and improve the Donation drive for child health centre: At Miskolc Hospital
coastal zone healthy and habitat friendly. Our initiative check dams and rivers by removing silt through public
local biodiversity. Gyöngyöshalász, Hungary, Apollo Tyres along with
focuses on conservation of mangroves in Kunhimangalam participation utilising the Mahatma Gandhi National
another regional company provided financial support to
village in Kannur district, which is the largest mangrove The project encourages community participation in the Rural Employment Guarantee Act (MGNREGA). In the
the hospital.
village in Kerala. It has partnered with Wildlife Trust of conservation activity. The project motivated community reporting year, one pond in Tarasva village of Waghodia
India (WTI) for the programme. members to disconnect their downspout to stop the block in Baroda district was restored and provided livelihood
Tyre donation: During the fiscal, the Company donated
rainwater from going into the sewer, opportunity to 180 beneficiaries under MGNREGA.
In the reporting year, mangrove restoration activities were tyres to Gyöngyös Ambulance Service and to Hungarian
now with this intervention rainwater flows into the stream.
conducted in seven locations in association with various National Blood Transfusion Service.
Support to Anganwadi & Public Health Centre (PHC) :
panchayats and Haritha Kerala Mission, Govt of Kerala. Over the years, the project has seen positive change in
The Company provided equipment support like water
the flora and fauna around the Stadbeek. Summer camp: A two-week summer camp was organised
To engage with the stakeholders, the Company filter, medicine rack, furniture, etc to the local PHC at
for school children. The idea was to engage with the
organised eight webinars related to biodiversity Chinnapandur village for the better infrastructure facility
LOCAL INITIATIVES children in creative and fun time activities and also
awareness and mangrove conservation and reaching and smooth functioning of the PHC.
help the parents. Total 20 children benefitted from the
out to over 580 people. In addition to the above four core themes, local initiatives
summer camp.
are implemented within the radius of 25-30 kms of the PHILANTHROPIC INITIATIVES
The Mangrove conservation initiative received an
manufacturing locations.
appreciation from the Haritha Kerala Mission of The Company also supports the underprivileged and Mask donation: During the first COVID-19 wave, there
State Government of Kerala. deprived communities by undertaking philanthropic was a huge shortage of face masks at the hospitals in
Access to purified drinking water: The project aims to provide
initiatives through Taru Foundation. The initiative ranges the Netherland. The organisation donated 1,000 face
This was given for the model ecological restoration RO drinking water to people in Orgadam village, Chennai,
from providing education support to underprivileged masks to the local hospital in The Netherlands to fight
initiatives undertaken by the project and for being a Tamil Nadu and Chinnapandur village, Chittoor in Andhra
girls to providing healthcare facilities to rural people and the pandemic.
partner in the ‘Pachathuruth’ project rolled by the state. Pradesh. Around 1,100 households and over 4,400 people
distributing food items to eradicate hunger and poverty.
are availing the drinking water facility.

~1,100
Households and over 4,400
people are availing the
drinking water facility

The Company also works on climate change mitigation.

It has planted 350,000 teak trees and red sandal trees in
the Tamil Nadu region. As per the estimation, 24,500 tonnes
of CO2 has been sequestered till March 2021. The project
also engages with the farmers for providing agriculture
interventions for soil productivity enhancement.

With a view to promoting the use of renewable energy,

the Company has also installed 231 household biogas units
in various villages of Waghodia Taluka, Vadodara.

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Performance against Sustainable Development Goals

Apart from mapping the core initiatives with SDGs, the Our Partners: Ambuja Cement Foundation, Ashok
Strengthen the means of implementation and Company emphasises on linking the initiative with SDG 17: Leyland, Telerad Foundation, Essilor India Pvt Ltd,
Partnership for Goals. Our focus is on collaborating with The Union, USAID, State AIDS Control Society (SACS),
revitalise global partnerships. like-minded organisations for project implementation and Central TB Division, Wild Life Trust of India, French
a wider outreach. Our ethos is to work in collaboration not Institute in India, CSRBOX, NABARD etc.
in silos.

SDG Goals & Target Mapping

Sr No Initiative Name Linkage with SDG SDG target Performance against the target (cumulative)

1
Healthcare for End the epidemics of AIDS, tuberculosis, malaria and
neglected tropical diseases other communicable diseases.
Total 4,339,290 people outreached and total 1,025,129 people
Trucking Community (Total 1 Cr people outreach by 2025).
have availed treatment facility from 31 healthcare centres.

Total 4 village panchayats were declared

Achieve access to adequate and equitable sanitation Open Defecation Free (ODF).
& hygiene for all and end open defecation.
(Total 10 ODF village panchayat by 2025). Over 1.41 lakh people were outreached under

Solid Waste Management

waste management initiative.
Achieve the environmentally sound management of all wastes.
2
& Sanitation (Total outreach through awareness activities to 4 lakh Total 8,721 metric ton (MT) waste was collected.
beneficiaries by 2025). Out of which 883.2 MT was biodegradable waste and
7,837.8 MT was non- biodegradable waste.
Substantially reduce waste generation through
prevention, reduction, recycling, and reuse. Total 09 ELT playgrounds constructed.
Nearly 1,600 waste tyres were recycled.

Eradicate extreme poverty for all people everywhere Over 8,000 women have received income generation training
Ensure women’s full and effective participation and and are involved in income generation.

3
Livelihood for equal opportunities. (Total 20,000 women in financial and
Over 9,000 women are directly involved in decision-making process.
Underprivileged Women
social inclusion decision by 2025).

Promote decent job creation, entrepreneurship. More than 100 group enterprises established, engaging
(Total women in income generation 15,000 by 2025). 2,000 women directly.

Strengthen resilience and adaptive capacity to 350,000 teak trees are planted under Afforestation project at
Tamil Nadu region. Total 24,000 tonnes of CO2 was sequestered.
Biodiversity
climate-related hazards.
4 Under Mangrove Conservation Project, covering 6.4 acres of land.
Conservation
Improve education, awareness-raising on climate change
mitigation, adaptation (Total awareness outreach to 80,000 people outreached.
5 Lakh people on Environment conservation by 2025). Total 232 biogas units installed at Baroda location.
Protect and restore water-related ecosystems, including
Local Initiative mountains, forests, wetlands, rivers, aquifers and lakes. 10 ponds, covering area of 3.5 lakh square feet were restored.
5 - Eco restoration of ponds
Achieve universal and equitable access to safe and Over 1 lakh people are benefitted from restoration of the ponds.
- Access to purified drinking water
affordable drinking water for all.

Philanthropy Initiatives
The Company also undertakes philanthropic initiatives through
Taru Foundation. These initiatives focus on providing quality
education to underprivileged girls, healthcare facilities
to rural communities and ration to homeless people
to eradicate hunger and poverty.

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People – The Inner Core

CAPABILITY BUILDING TO BE FUTURE READY EMPLOYEE ENGAGEMENT

With the spirit of ‘People First’, the Company offers a talent Talent development is one of the key foundation stones At a global level, Apollo Tyres runs several employee
value proposition that allows it to challenge, enrich and fulfil Region-wise breakup of of human capital deployment at Apollo Tyres. Capability engagement programmes to keep employees motivated
aspirations of its people, so that they can maximise their employees is represented below [%] building has been the focus area, which enables Apolloites and productive.
true potential to ‘make a difference’ and ‘go the distance’. to face challenges, learn, grow and ‘Go The Distance’. The
During lockdown, the management ensured connect with
As of March 31, 2021, Apollo Tyres has 18,734 permanent 10.86 0.12 programmes are designed and linked to achieve business
each and every employee. At the outbreak of COVID,
and contract employees worldwide. In the reporting year, goals and be future ready.
the Company introduced a helpline, voluntary top up for
extensive work was done with regions on aligning existing 4.07 In FY21, it launched the Apollo Virtual Academy (AVA) for parents’ mediclaim and Corona Kvach policy, work from
grades with global grades, using Hay job evaluation
employee engagement and learning & development. During home ergnomics and Sanjeevani programme to take care of
method, and was successfully updated in the Company’s
the pandemic, under the ageis of the AVA, multiple virtual employee health and wellness.
Human Capital Management System.
sessions were conducted.
To strengthen healthy well-being, even during pandemic,
APMEA In Enschede, with the restructuring of employees, Sanjeevani (a fitness and wellness programme) was
Europe various training schemes were offered to enhance the introduced in India, in which regular Yoga sessions and
Corporate
skills. In India, the focus was also on organisational coaching by professional trainers on fitness was done for
84.95 Americas
behavioural programme titled Apollo ONE. This is a change employees.
management programme which aims at building
high-performing and high-trust teams. REWARDS & RECOGNITION
Apollo Tyres provides its workforce with an equal
opportunity to perform and gain recognition and cultivate The Company continued its successful ADMIRE At a global level, Apollo Tyres runs several recognition
an environment of ‘One Family’. With this philosophy, it programme, focused on Sales capability development programmes aimed at rewarding employees including

18,734
engages with them regularly to ensure their well-being and while the specialised training programmes like Winning the Chairman’s Award –‘Employee of the Year’ to senior
levels of engagement. with Customers & Apollo ONE were designed to enhance level employee, and Roll of Honor to to individuals in middle
managerial and functional skills. management. The Long Service Awards, Apollo Pillars
ONBOARDING TALENT FOR A PROMISING FUTURE was introduced to recognise and reward the long-term
Total employees At the plant level, several initiatives were conducted
contribution of the employees, towards the growth and
The Company focused on bringing in global talent that to ensure multi-skilling as well as up skill development
success of the organisation.
can be fostered along its core values. It believes in not just trainings. These included ‘Knowledge House’ in Limda,
lateral hiring, but also building and nurturing talent directly Gujarat, ‘Learning Day’ in Kerala, ‘E-Learning Week’ In FY21, the Company introduced, ‘Chairman’s Recognition

31%
from campuses, in order to groom them as future leaders. and ‘Internal Capability Building’ programme in Andhra Week 2020’ which was celebrated by employees globally as
Pradesh and ‘FLM training’ and ‘Skill Connect’ in Tamil they shared Appreciation Badges with other colleagues for
The Apollo Summer Internship programme, conducted
Nadu. their amazing work and out-of-the-box thinking.
online, saw interns from premier MBA institutes work on live
LTIFR (in FY21) projects closely with the leadership team across functions
HEALTH AND SAFETY
like Sales, Marketing, Supply Chain Management and
Finance. Apollo Tyres steadily moved forward in its Health & Safety
[H&S] culture transformation journey and its integration

21%
FOSTERING SOCIAL DIALOGUE FOR ROBUST INDUSTRIAL with business processes were further strengthened. The
RELATIONS Company is making synergised efforts in key focus areas
across the operating ecosystem to strengthen H&S risk
The Company has consistently worked in collaboration
management. The detailed initiatives for FY21 have been
of workforce is women in with Trade Unions and other employee bodies to improve
mentioned in the MDA section of the annual report.
Hungary the working environment for its people as well as the
productivity and cost-effectiveness of the operations
JOB ENRICHMENT AND ROTATION
globally. For grievance redressal, Total Quality
Management methodology was adopted and all processes As a growing organisation, to meet the challenging
were standardised and therefore addressing their concerns demands of the industry, a lot of learning opportunities are
were also streamlined through the Daily Work Management provided to internal talent in the form of job rotation and
(DWM) model. job enrichment as a win-win arrangement.

In Enschede, the Company successfully implemented

the restructuring plan for the plant.

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Being
Future Ready
As a future focussed company, Apollo Tyres endeavours to find
solutions for the rising expectations in mobility. The Company
consistently keeps itself calibrated to the changing consumer
behaviour and innovates to offer products that suit their needs.

The Paris Agreement and laying down of Sustainable

Development Goals (SDG) in 2015 led to a cultural shift in
thinking across the sectors where ESG has established a foothold.
The Company has embarked upon the journey, whereby it aims to
create a shared value for its stakeholders.

Collaboration with all stakeholders remains the mainstay for the

Company in advancing its journey towards developing mobility
solutions for the future.

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India Market Overview During this quarter, Passenger Vehicle (PV) and Two-
Wheeler (2W) segments gained momentum while
Commercial Vehicle (CV) and Three Wheeler (3W)
ECONOMY segments were in the negative zone. The PV segment led
the recovery quarter-on-quarter with sales at 0.9 million
It was a year of COVID-19 as it subsumed everything in
units, marginally above the previous best sales of 0.8 million
its wake! During the Financial Year 2019-20 (FY20), the
units in January - March 2018. CV sales rebounded strongly
discussion was about US-China trade war along with the
in Q4 with 0.2 million units, accounting for nearly 40% of
ensuing geopolitical tensions and general elections in
total yearly sales.
India among others. FY20 was a witness of the start of
the COVID-19 pandemic. However, FY21 was simply about However, despite the strong performance in the second
the COVID-19 pandemic and its impact on individuals, half, the CV segment continued its FY20 downward spiral,
communities, companies and nations. reporting a 21% drop in sales to 0.57 million units in FY21
from 0.72 million units in FY20. The 2W and 3W business,
According to the International Monetary Fund (IMF), US
which together account for over 80% of the national sales,
GDP de-grew by 3.5% in CY20 as against a growth of 2.3%
witnessed a de-growth of 13% and 66%, respectively, for
in CY19. Overall, Advanced Economies posted negative
the fiscal.
growth of 4.7%, with the sharpest contractions reported
in Spain, the UK and France at 11%, 9.9% and 8.2%, The PV segment reported a 2.2% drop in sales to 2.7 million
respectively. Even the traditionally fast growing Emerging units from 2.8 million units in FY20. The silver lining was the
Markets & Developing Economies could not insulate continued demand for utility vehicles, which resulted in a
themselves against the COVID-19 impact, recording a healthy growth of 12% to 1.1 million units and accounted
2.2% decline in GDP. China was the only bright spot with a for 39% of the total PV market, up from 34% in FY20. The
growth of 2.3%. Electric Vehicle (EV) segment reported registration of 4,588
units compared to 3,000 units in FY20.
India too faced an uncertain FY21. The fiscal year began
with a lockdown leading to multiple socio-economic Overall, the automobile industry remained in the negative
challenges, such as mass exodus of the migrant labour territory with a 13.6% decline over FY20.
population, subdued demand as consumers became
cautious, job losses and reduced salary. The Indian economy Tyre Segment
contracted about 24% in Q1, FY21, with most businesses Invariably, the slowdown in auto sales directly impacted the
recording a washout quarter. As the lockdown gradually tyre industry. In the past, sales of tyres in the replacement
eased, with aggressive government policies to spur the market supported the industry in offsetting any de-growth
economy, industries saw some demand returning. However, in Original Equipment Manufacturers (OEMs). However,
consumer sentiment remained weak, resulting in FY21 was different as lockdowns and poor consumer
low offtake. sentiment led to a negative growth in the tyre sector in
India. According to the data released by the Automotive
As per the data from India’s National Statistical Office, the
Tyre Manufacturers’ Association (ATMA), the tyre industry
country’s GDP contracted by 7.3% for FY21 as compared to
declined nearly 4% as compared with the year-ago period.

Management
the growth rate of 4.2% in the previous fiscal.
As the unlocking phase progressed in India, aggressive
Auto segment measures were implemented to spur demand and,
The industry was already witnessing a slowdown as the consequently, the industry witnessed traction in the
growth rate fell to 5.2% in FY19. It reported further Medium & Heavy Commercial Vehicle (M&HCV) segment—
negative growth with a fall of 14.2% in FY20 owing to with a reduced fall of 3% for FY21 compared to the

Discussion
overall economic slowdown, lack of government stimulus, staggering 12% in FY20. In April 2020, the segment saw
liquidity crisis and poor consumer sentiments in face of the a fall of 96% along with an overall decline of 56% for Q1.
pandemic. The auto industry experienced a considerably However, the tide turned in September 2020 when the
poor Q1, but found the tide turning with steady increase in segment showed a 39% growth over September 2019.
demand during the remaining quarters. According to the If one looks at the performance of this segment since
Society of Indian Automobile Manufacturers (SIAM), the September 2020 till February 2021, it grew by 28%.

and Analysis
industry saw a huge decline of 79% in Q1 numbers. As the
The story for the other major segment, PV, is also similar.
lockdown gradually lifted, demand made a comeback to
While it posted an overall drop of 10% for the 11 months
the market even as the production for Q2 continued to be
period, the segment recouped its losses of the initial period
negative with a de-growth of 7%. Q3 marked the beginning
in the second half of the fiscal. Production from September
of the recovery phase, which can be largely attributed to
2020 to February 2021 accounted for 74% of total units for
the pent-up demand, positive agricultural economics and a
FY21 as compared to only 56% for FY20.
moderate shift from public to private transport.

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Management Discussion and Analysis

Europe Market Overview New car registrations fell by 3 million units compared to Industry Structure and Developments
2019 and all 27 EU markets recorded decline in double-
ECONOMY
digits through 2020. Looking at the region’s biggest car
Europe struggled with further economic slowdown in CY20 markets, Spain faced the sharpest drop of 32% followed India
amid falling demand, persistent global trade tensions closely by Italy with a 28% decline while France de-grew by The tyre industry is directly dependent India constitutes one of the biggest
and uncertainties over Brexit—intensified by the looming 25%. In Germany, full-year losses were significant but less on the business from the OEMs and 2W market in the world with more
challenges of the COVID-19 outbreak. pronounced as it saw a decline of 19%. the replacement market. As the space for growth. Despite the
OEMs for PV and CV continued to pandemic, this segment is witnessing
The start of the year bore witness to the resolution of The EU commercial vehicle segment struggled as the
show poor sales, demand from them demand with people moving away
Brexit as the UK formally parted ways with the European market shrank by 19% to reach 1.7 million units. While the
impacted the tyre industry adversely. from shared/ public transport and
Union (EU) on January 31, 2020. This was followed by the industry did gain momentum in September and November
The replacement market, on the opting for personal vehicles, including
outbreak of COVID-19 pandemic across EU. Additional 2020, lockdowns and poor demand during the first six
other hand, continued to support the two-wheelers. This trend drove the
factors that continued to aggravate the situation in Europe months continued to weigh on the yearly performance. All
industry and partially recouped the demand for tyres as well.
included the falling oil prices threatening bankruptcy for EU markets posted double-digit declines in 2020 with the
losses.
many companies and discouraging consumer sentiments. exception of Denmark. Of the four major markets, Spain On the raw materials front, two

81%
Impacting the overall economic performance, the situation suffered the most at -26% followed by France at -17%, Italy The ATMA data shows replacement distinct themes played out during
demanded a renewed evaluation of growth estimates and at -15% and Germany at -15%. sales for M&HCV accounted for the year. In the first half, lockdowns
forecasts. The labour market showed a positive trend with 81% of total domestic production— led to demand contraction along
reduction in unemployment resulting in purchasing power Tyre segment the highest across categories. A with a decline in raw material cost.
gains. However, private consumption declined indicating Intrinsically connected to the auto industry, the tyre Replacement sales for remarkable increase from 72% in the However, in the second, recovery in
higher household savings amid uncertainties. industry faced a difficult year as well. Imposition of M&HCV accounted for previous fiscal. Exports accounted for automobile production and support

Based on a report issued by Eurostat, the statistical office

lockdowns and mobility restrictions along with the 81% of total domestic around 12% of the total volume for the from the replacement market resulted
economic crisis led to suspension of operations and segment. PV replacement accounted in a sharp rise in cost of raw materials.
of the EU, the GDP for CY20 fell by 6.6% in the Euro markets production—the highest
shutdowns. This situation strongly impacted sales giving for 55% of total domestic availability, The challenges faced by the industry
and by 6.2% in the EU after gains of 1.3% and 1.6%,
rise to unemployment. The OEM sector suffered greatly
across categories. while OEMs contributed to around and its players included shipping and
respectively, in CY19.
with a fall of 23% for consumer tyres and decline of 37% of the business. During the year, logistics management. The industry
18% for trucks. Given the poor consumer sentiment, the demand increased in rural India as is faced shortages of containers, blank
Auto segment
replacement market took a beating. Consumer tyres evident in the double-digit growth in sailings and port congestion leading
According to the European Automobile Manufacturer
reported double digits decline of 12%—with both car winter the Tractor, Tractor Rear and Tractor to sharp spike in ocean freight rates
Associations, CY20 proved to be one of the worst years for
tyres and summer tyres registering falls of 20% and 13%, Trailer segments, which grew by 47%, during the second half of the year,
the passenger car market with the highest yearly decline
respectively. Breathing life into the industry, the shining 70% and 24%, respectively. adding to the cost push.
in car demand. The segment contracted by 24% to 9.9
star was the all season car segment with a growth of 5%
million units as a direct result of the COVID-19 pandemic.
for CY20. The truck tyres segment registered a de-growth
Containment measures including long and complete
lockdowns among other restrictions had an unprecedented
of 4% while agricultural tyre sales remained stable in
comparison to the previous year.
Europe
impact on car sales across the EU. The first wave of the COVID-19 While the truck tyre segment saw
pandemic saw subdued demand from negative trends between March and
the important passenger car tyre July 2020, the segment recovered after
markets, such as Germany and Spain. September 2020 and showed positive
The subpar demand continued from growth.
November due to a mild winter and
After six continuous years of decline,
the uncertainties linked to the second
agricultural tyre sales exhibited
wave. Meanwhile, imports of PV tyres
improved performance this year.
witnessed growth during the year and
This can be attributed to the focus
gained market share with majority
on agricultural goods during the
resting with Ultra-High Performance
pandemic as well as the barriers faced
(UHP) and winter tyres.
by external trade and imports. The
EU agricultural sector demonstrated
resilience during the COVID‑19 crisis.

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Management Discussion and Analysis

SWOT Analysis

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• Apollo Tyres has the advantage of a diversified market • In a rapidly rising raw material cost scenario, the • In India, the Company has maintained a healthy lead over its • The economic downturn or slowdown in the Company’s
base across geographies and therefore, it is not completely Company may be unable to pass on cost escalations to competitors with respect to capacity and market share in the key markets (India and Europe) can result in decreased
dependent on the Indian market alone. Further, the Company consumers, in a timely fashion, due to intense competition Truck Bus Radial (TBR) segment. This is indicative of positive volumes and impact capacity utilisation.
is working towards establishing and expanding its operations and various market dynamics resulting in pressure on growth prospects with increasing ‘radialisation.’
• The continuing lockdown at the Company’s operational
in newer large markets, including Association of Southeast margins.
• The Company is witnessing gains in market leadership gains locations can have a significant impact on the business.
Asian Nations (ASEAN) and North America.
• European operations have been witnessing financial strain in the passenger car tyre due to its strong and robust product
• The Company will continue to invest in the plant in
• With a reasonable presence in the two-wheeler segment, the due to a dwindling market scenario along with pricing portfolio.
Andhra Pradesh. There would be pressure on margins as
Company is recognised as a full-range tyre player in India pressure and an internal operational struggle with a high-
• In the Indian market, the Company’s two-wheeler tyre the utilisations ramp up gradually and reduced demand
with capabilities of servicing the large and growing two- cost plant in Western Europe and a ramping up plant in
product has been widely accepted with opportunities of due to COVID-19 pandemic.
wheeler tyre segment in India. Central-Eastern Europe.
scaling up its market share in a fast-growing and profitable
• A weak Indian currency can result in pressure on margins,
• The Company is powered by strong product brands in its key segment.
since the Company is a net importer.
markets, namely Apollo and Vredestein.
• The Company’s highly automated state-of-the-art
• A growing influence of budget tyres, mainly Tier 2 and
• Apollo Tyres enjoys an extensive distribution network for its Greenfield plant in Hungary is now scaling up and it is well-
3 brands from established manufacturers, could further
products across its two key markets. positioned to grow in the European market due to a new
impact business in Europe.
cost-competitive manufacturing facility.
• In Europe, Vredestein has a legacy of over 110 years with an
• Consolidation in the distribution landscape as
established reputation and premium positioning, especially in • The Company initiated deliveries to European OEMs
independent dealers are disappearing, wholesalers and
the winter and all season segments. endorsing the premium position of its Vredestein brand in an
company owned networks are growing. Internet is playing
effort to generate replacement demand.
• With a strong manufacturing base in India and Europe along a major role in this change and this can impact the
with a wide-spread network, the Company is strategically • Together, the Vredestein brand and the state-of-the-art Company network and profitability.
positioned to distribute and sell its products across the globe. plant in Hungary will prove instrumental in improving the
• High capital intensity resulting in regular need of large
Company’s product offerings leading to a more profitable
• Following the successful launch of its PV range in North capex for growth putting pressure on free cash flows.
premium car tyre segment.
America, the Company has forayed into the truck-bus tyre
• Increase in raw material cost can impact the profitability
segment in this market. • The Company plans to introduce the Vredestein brand in
of the Company.
India which will cater to the higher segment of the market.
• In India, the Company is a leading brand in the CV segment,
which accounts for the bulk of the industry’s revenue. The • The Company has launched truck radial tyres in Europe,
Company is best positioned to maintain its leadership position which will further enhance revenue and market presence.
in the truck radial segment and drive growth through it.
• Growth in premium segment of PV (17” and above) in all
• With a global and culturally diversified management team, product categories (Summer/All Season/Winter) where
the Company drives growth across geographies. Vredestein has a strong presence.

• The Company’s Research & Development (R&D) facilities • The anti-dumping measures in EU against Chinese imports
for PV and CV tyres play a key role in bringing cutting-edge will lend support in expanding Apollo’s TBR footprint.
technology and innovation.

• Increased investment on building the corporate brand has

been effective in strengthening Apollo Tyres’ position in India
and establishing its presence on global platforms.

• Through its long-established relationships with international

OEM manufacturers in India, the Company has entered the
premium OEM segments in India.

• The Company is aggressively pursuing its strategy of

building OEM relationships in Europe and has found success
towards this.

• The Company’s new ranges like Vredestein Wintrac Pro and

Vredestein Quatrac Pro have been awarded high-level ratings
by multiple external media and tyre testing agencies.

64 Apollo Tyres Ltd Annual Report 2020-21 65

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Management Discussion and Analysis

Segment-wise performance In addition, the premium drive tyre, Apollo XT100 HD,

~345,000
was launched. A combination of superior durability, tread
mileage and world-class design, this product is the new
The Company continued to focus on its key regions—India
flagship bias drive tyre in the Apollo TBB range.
and Europe. Also, it continued to build its presence in North
America with product releases and seeding the market. Apollo Tyres took the year to prepare for the high growth
segments in the market. The tipper segment witnessed a
Highest number of Amazer
In FY21, the APMEA (Asia Pacific, the Middle East and
greater demand for 11.00 R20 special application tyres. 4G Life sold in March 2021
Africa) operation continued its focus on key themes for
The Company’s Endutrax is a much-preferred brand in this
the Indian market—consolidating its leadership position
application, and it has garnered major business from OEMs
and expanding market share by introducing new products
and saw strong volumes in the replacement market. In the passenger car segment, the Company saw strong
across segments. During the fiscal, the Company also
growth across all its brands. The Aspire 4G range, which is
inaugurated its new greenfield plant in Andhra Pradesh, In the Light Commercial Vehicle (LCV) segment, the
known for its exceptional high-speed braking and control,
India. Committed investments in R&D and brand building Company continued to play on its strength of radials and
posted a strong growth and reinforced its presence in
continued to fuel the growth journey of the region to attain dominated the market with an extremely high replacement
the luxury segment owing to range expansion, multiple
its vision. The region has seen continued OEMs approvals market share. The product quality gained favour with the
branding initiatives and increasing penetration among
with high satisfaction as well as increased customer OEMs, which led to Apollo earning one of the highest shares
the dealers. Having expanded its Aspire 4G portfolio, the
acknowledgements. For other countries in the APMEA of its business.
Company can cater to a wide range of luxury car brands,
region, the Company continued seeding the markets with
In Pickup and SCV radials, the Company’s EnduMaxx LT such as Audi A6, Ford Mustang, BMW 3 Series, Mercedes
country-specific products, building brand salience and
initiated its journey towards leadership. In the replacement CLS, Mercedes M Class, Porsche Cayenne and VW Touareg.
expanding distribution networks. The Company showed upward growth of 50% in the
market, it gained market share and found fitments in
The other brands for the segment, including the Alnac replacement market in FY21 compared to FY20 and
reputed OEMs, including Ashok Leyland, Tata Motors and
COMMERCIAL VEHICLES and Amazer, posted strong growth. In fact, the Company gained substantial market share in this space. It further
Isuzu. Increased focus on rural journeys also supported the
recorded an unsurpassed figure of about 345,000 units of consolidated its position by increasing its share of business
Apollo continued to consolidate its leadership in the CV growth in this segment.
Amazer 4G Life in the month of March 2021. On the OEM with OEMs.
segment. In the M&HCV category, Apollo Tyres’ truck range
front, Apollo witnessed positive growth due to the revival
registered its highest figures in the replacement market PASSENGER VEHICLES By expanding its already strong portfolio, Apollo created
in OEM sales. It also added OE fitment to its portfolio for
with an all-time high demand. There was a gradual increase a firm foothold for its brand within this segment. Besides
In FY21, the Company continued to cement its market prominent OEMs, such as Creta and Venue from Hyundai
in demand from OEMs and Q3 onwards, it peaked at the its established products, such as Farmking, Virat 23 and
leadership position in India in the PV segment. The growth and Seltos and Sonet from Kia.
highest recorded levels month on month. The Company Krishak Gold, the Company also offers a host of products
strategy was driven by high decibel marketing campaigns,
gained market share during FY21 across bias and radial SUVs have become fastest growing segment in the Indian across special applications, including puddling, compact
expansion of its distribution footprint, new product
segments. New launches, increased network and investing market with the success of the compact SUV (CSUV) tractors and row crop propelled the growth.
launches and increasing the base of OEM clients. Even as
in dealer relationships were some factors that contributed segment outperforming all other car segments in the last
the economic downturn continued, the Company leveraged In the Industrial tyres category, the Company reported
to this growth. 5 years. Every single CSUV launched by OEMs garnered
its strengths to find opportunities in the various challenges unprecedented figures in the replacement market and
record bookings and long waiting periods. The Company has
In the Truck Bus Bias (TBB) segment, the Company it faced across the country. As a result of its initiatives and increased its market share. Moreover, the robust OEM
focused on developing a dedicated CSUV tyre for two years
launched its bias rib tyre, Apollo Abhimanyu, which strong branding, the category recorded good growth over demand from the second half of the fiscal was promising
and through the efforts of the R&D team, the fiscal saw the
became the new benchmark of performance within the FY20 and improved its market share by 2%. with the addition of Case and Indofarm to the client base.
Company successfully launched a dedicated tyre for the
segment. With more than 2.5 million kms of field and indoor
CSUVs—Apterra Cross. The Company outlined a robust During FY21, the Company introduced next generation
testing, the product has been accepted for the growing
plan for the SUV segment while its flagship pattern, Apterra products for backhoe loaders, graders and compactors
performance demand for bias tyres by customers.
HT2, continued to show the highest growth. under the ‘Terra’ brand. The Company offers a wide range of
products for every mass application in this category.
OFF-HIGHWAY TYRES
In the Earthmover category, Apollo Tyres continued to bag
The Company’s Off-Highway Tyres (OHT) category is key tenders with Coal India. The Company’s latest product,
focussed on three key sub-segments: Agriculture, Industrial which has been developed specifically for limestone mining,
and Earthmovers. caters to coal and limestone mining accounting for 80% of
India’s mining activity.
The Agriculture segment proved to be the silver lining for
the economy during the pandemic-laced fiscal. The segment
saw good growth as it was supported by two consecutive

50%
years of normal monsoons, two bumper crops, increase
in agriculture income and higher allocation to Mahatma
Gandhi National Rural Employment Guarantee Scheme
(MGNREGS) by the Government.
Upward growth in Company’s
During the lockdown, India was home to a mass exodus
of migrant labourers returning to their native villages.
OHT replacement market in
This reverse migration pushed farmers to invest more in FY21 compared to FY20
mechanised agriculture, which resulted in a strong growth
in demand for both tractors as well as agricultural tyres.

66 Apollo Tyres Ltd Annual Report 2020-21 67

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Management Discussion and Analysis

TWO WHEELERS RETAIL FOCUS The Company also organised the second edition of
Apollo Farm Power Awards in collaboration with ICFA
Apollo Tyres aims to build a strong foothold in the high Over the years, the tyre industry in India has been
(Indian Chamber of Food & Agriculture) to recognise the
value and profitable premium motorcycle tyre market, witnessing a change in the retail landscape. The major
best tractor models introduced in India across different
which caters to the top 20% of motorcycle market in India. players are focused on enhancing the consumer experience
categories. This event was graced by the Agriculture Union
It continued towards this vision driven by new product at the retail point and Apollo has been at the forefront of
Minister with active participation from all key OEMs.
launches, effective marketing campaigns, increasing this change. Today, over 50% of its sales comes from over
distribution footprint and creating a strong consumer 650 plus branded retail network across 150 cities. The
BEYOND INDIA
demand for technology‑backed products. Company’s branded retail outlets provide
state-of-the-art infrastructure ensuring superior customer With operations in key countries like Thailand, South Africa,
During FY21, the Company inaugurated its motorcycle
experiences through skilled staff. Philippines, UAE, Ethiopia and Indonesia—in the APMEA
tyre plant in Limda, Gujarat, for high-end X-ply and steel
region, the Company continued to invest in creating brand,
radial products. With this advanced and futuristic facility, Driven by its objective of developing its rural distribution
working on the requirements of each region to bring country
the Company has developed a global portfolio of high-end footprint, the Company introduced a new low-cost format
specific products.
bias and steel radial tyres. The fiscal saw the Company ‘Apollo Tyre Sarpanch’ during the year. In the first year, the
extending its steel radials portfolio to the entry-level sports Company set-up more than 550 stores. With this initiative
EUROPE
motorcycle (150-200cc) segment. This has facilitated a added to its existing ‘Apollo Rural Exclusive Dealership’ and
multi-fold increase in its volumes over the previous year ‘AVK/ ARD’ format, the Company has extended its reach to In Europe, the Company largely operates in the
leading to a market share of 20% in the premium sports the hinterland of India. replacement market in PV radials, agriculture, industrial,
motorcycle segment. The Company’s high-decibel digital TBR and bicycle segments, even as it continues to make
For the CV segment, the Company continued to focus on In FY21, the Company launched its first motorcycling-
campaign #TestTheAlphaChallenge encouraged consumers inroads into the OEM segment across all segments.
expanding its retail network of Apollo CV Zones, which offer based web series with PowerDrift. The four-part video
to test its steel radial products with a 30-day return policy
best-in-class tyre service to commercial truck and bus fleets. content series built on different journeys across the country For the Europe region, the fiscal was an important one as it
on payment made, if the consumer was dissatisfied.
The Company has the largest network of 76 CV Zones within with more than 4 million views on YouTube and a much completed the specialisation of its plant in Enschede, The
In the high-end X-ply products for premium motorcycles, the tyre industry. In addition, it has a strong network of higher engagement index on other social media platforms. Netherlands. The Dutch operations were facing challenges
the Company launched a specialised off-road pattern around 50 Apollo Retread Zones offering the most reliable The initiative not only established a shared passion for of economic viability against the accelerated market
for Royal Enfield motorcycles, actiGRIP R6 and actiGRIP re-treading service to ensure maximum value realisation from motorcycling with consumers but also became the first of its transformation. For a long-term sustainable future, the
F6. The product caters to the everlasting need of these truck bus tyres. kind in the industry. Company initiated the specialisation process which entailed
consumers to explore uncharted geographies and offers focus on profitable products, such as agricultural tyres and
The Company also continued connecting with its loyal
them the freedom to ride confidently. BRAND BUILDING high value—niche segment passenger car tyres.
communities across cities via digital variants of its flagship
The Company derives nearly 20% of volume sales from The COVID-19 pandemic called for reduced brand- ‘Bad Road Buddies’ initiative and regional biking. Owing to the dual impact of the COVID-19 pandemic and
rural markets. The wide 2W product portfolio has enabled building initiatives in terms of investments and volume of revamp of the Company’s product portfolio of the ‘Apollo’
In the CV space, the Company continued to build the
cross-selling agricultural and car products. advertisements. Nevertheless, in terms of brand salience branded tyres, volumes for passenger car tyres decreased.
driver connect programme, ‘Apollo Swastha Saathi’. The
and recall, Apollo Tyres held its ground at the second place. However, the market share of the Vredestein brand
programme expanded to include new districts and has
In FY21, the Company’s brand-building campaigns were remained stable over the fiscal. Given the decline in the PV
been recognised by the driver community for ensuring their
primarily designed for digital platforms, including social tyres market, the Company inched its market share up in
health and safety, especially during the pandemic.
media initiatives. UHP and ultra, ultra-high performance (UUHP) segments.
Building a strong brand across segments, the Company
The Company’s initiatives like ‘Vehicle and Tyre Care during In the agricultural segment, the Company witnessed stable
become the first Indian tyre company to introduce the
Lockdown’, ‘How to get tyres during the lockdown?’, etc sales and continued to hold on its market share. While the
branded retail concept in agriculture tyres and opened
were channelised through digital mediums. Further, the region has a significant presence in the OEM sector, its
four ‘Apollo Farm Zones’ during the year. It also expanded
Company also focussed on showcasing its CSR work done sales slightly declined in line with reduced production by
its concept of ‘Apollo Farm Points’ with more than 200
during the year including initiatives done in Gurgaon slums OEMs due to pandemic-related challenges. However, this
additions in FY21.
and for the trucking community to build on brand affinity. was compensated with the increased sales in replacement.
Beyond expanding the retail network, the Company In the Industrial Construction segment, the Company
Beyond brand specific and CSR related promotion, the
connected with end consumers through digital and social added new OEM customers, including Caterpillar and
Company also encouraged people to ‘Maintain the
media platforms. The Company’s digital campaigns for Liebherr, and posted growth as a consequence of strong
Distance’, follow proper sanitisation when travelling, etc.
puddling and compact segment were a huge success replacement volumes.
bringing lot of readers on our social brand handles as well
reaching more then 25 million people and attracting over 5
as on our website. After the lockdown, as the Company
million views on various social media platforms.
witnessed a surge in demand, its hyperlocal initiative to
help consumers locate its nearest dealers worked wonders

200+
to generate footfalls for its partner network.

Apollo Tyres continues to invest heavily in rural markets to

create a brand presence in the hinterland with targeted
campaigns running during farming seasons to promote its
tractor tyres and specific pickup segment vehicle tyres. A Apollo Farm Points
strong rural distribution network was established helping expanded in FY21
the overall business.

68 Apollo Tyres Ltd Annual Report 2020-21 69

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Management Discussion and Analysis

Risk and Concerns from the point of view of the organisation

The Company has in place a robust risk management business objectives and create sustainable value and
framework that identifies and evaluates business risks and growth. The Company’s risk management processes focus
opportunities. The Company recognises that these risks on ensuring that these risks are identified promptly and
need to be handled effectively and mitigated to protect a mitigation action plan is implemented and monitored
the interest of the shareholders and stakeholders, achieve periodically to ensure that the risks are being addressed
accordingly.

The Company’s risk management framework operates with the following objectives:

Proactively identify and Facilitate discussions around risk Provide a framework to assess
In the TBR segment, the Company showed growth in most COVID-19 has grave consequences for the automobile highlight risks to the right prioritisation and mitigation risk capacity and appetite;
countries across Europe and closed the year delivering a industry and all related sectors. In its outlook in April 2021, stakeholders develop systems to warn when
strong performance over FY20. SIAM estimates Passenger Vehicle (PV) sales to grow the appetite is getting breached
between 3-5% and Commercial Vehicle (CV) at 10-12%. The
On the Bicycle tyres segment, the pandemic had both a
Two-Wheeler (2W) segment is expected to grow between
positive and negative impact. While lockdowns lasted,
5-7% and the Three-Wheeler (3W) segment is pegged to
cycling became increasingly popular as anxiety over public
grow between 7-9%. With the imposition of lockdowns
transportation and surge in exercise meant that more The list of key risks and opportunities identified by the Management are the following:
across the country, the outlook might be subject to change.
people choose to use (electric) bicycles. This led to spike
in demand and a growth in sales. On the other hand, the Considering this volatile outlook, Apollo continues to have FINANCIALS
disruption in the supply chain meant shortage of raw a cautious approach. The focus is on employee safety and
1. Raw material price volatility 4. Radialisation levels in India
materials, absence of workers and infrastructural and conserving cash. The Company is re-engineering production
• Natural rubber is an agricultural commodity and subject • Slower than expected increase in the radialisation level
logistical challenges. It proved difficult for the Company to and rethinking avoidable costs while investing in R&D,
to price volatility and production concerns. in the truck tyre segment may affect Indian operations.
optimise on the opportunity in this scenario. eTraining and brand building.
Excess capacity may result in competitive pressures and
• Most other raw materials are affected by the movement
The APMEA region is witnessing some traction in demand in decline in profit.
OUTLOOK in crude prices. Any volatility in crude oil prices may
the CV segment and the agricultural space and has initiated
impact the prices of some of the raw materials. • At the same time, an unexpected quicker increase in
The second wave of COVID-19 pandemic implies further strategic action to tap this demand. In the M&HCV category,
the level of radialisation can result in faster redundancy
challenges for various economies, including India. key launches have been scheduled for FY22 in the TBB and • Both natural rubber and crude prices are controlled
of cross-ply capacities and create a need for fresh
TBR categories, including some future flagship products by external environment and are, therefore, beyond
According to the International Monetary Fund (IMF), global investments.
to expand the market share. In other categories, like LCV/ reasonable control of the management.
prospects remain highly uncertain. New virus mutations
SCV, 2W and OHT, the Company will continue its efforts to 5. Future growth
and the accumulating human toll raise concerns, even as 2. Ability to pass on increasing cost in a timely manner
drive radialisation offering the best value to customers and • Lower profitability due to some of the above factors
growing vaccine coverage lifts people’s sentiments. The • Demand-supply situation must remain in favour of the
maintaining its technology strength. It is confident that the impacts the ability to invest in future growth.
outlook depends not only on the outcome of the battle industry to enable it to undertake price increases.
agricultural segment will continue to hold in FY22 and with
between the virus and vaccines—it also hinges on how • Increased competition from global players such as
a robust product offering, it will continue to see continued 3. Continued economic growth
effectively economic policies are deployed to limit lasting Michelin, Bridgestone, etc. in India, may also hamper
growth momentum in this category. • Demand in the tyre industry is dependent on economic
damage from this unprecedented crisis. growth.
growth and/or infrastructure development. Any
The European region has focused on revamping its portfolio
The IMF is projecting a global growth at 6% in 2021 slowdown in the economic growth across regions • The continuing lockdown situation due to the COVID-19
over the past 2 years. The region is confident that the
moderating to 4.4% in 2022. However, uncertainty impacts the industry. pandemic can lead to a serious impact on the
upgraded products will help it to consolidate and grow its
surrounds this outlook considering the path of the organisation including a significant drop in demand,
position in the market. The region will continue to prioritise • In past few years, the Company has made significant
pandemic, the effectiveness of policy support to provide a drop in profitability, liquidity concerns, etc.
the all season market where the Company has been a pioneer. investments to increase production capacities, both in
bridge to vaccine-powered normalisation and the evolution
Through its latest high-performing products and the widest India and Europe. Any slowdown in economic activities,
of financial conditions. SOCIAL
portfolio of sizes, the Company will strengthen its position in may adversely impact return on such investments.
In Europe, the economic activities are currently undergoing this segment and continue to delivery positive growth. 1. Manpower and Labour
• In Europe, the Company’s tyre sales in winters are
stress due to lockdowns and falling demand. As per the IMF, • Retaining skilled personnel may become increasingly
Further, the Company has refreshed its summer range with subject to seasonal requirement, which can be adversely
the European economy is expected to recover by 4.7% in 2021. difficult in India due to the growth ambitions of other
the new Ultrac and upgraded Vorti+. These new products impacted in case of a mild winter season.
players in the Indian tyre industry.
For India, the IMF holds a bullish outlook. As per its April will help establish a stronger presence in the summer tyre
2021 update, the IMF projected India’s GDP to grow 12.5% category. The region will continue to work on growing its • Tyre manufacturing is significantly dependent on
in FY22—the highest among emerging and advanced overall distribution footprint by recruiting new customers availability of skilled labour. Any labour unrest, shortage
economies. The GDP growth for FY23 is pegged at 6.9%. across Europe and expanding its retail networks. The plan of labour, diversion of labour to other industries may
India is the only country expected to register a double-digit to accelerate the introduction of Apollo branded TBR tyres impact its tyre production
growth this fiscal. However, the rapid spread of the second and Industrial tyres in key European markets will provide
wave of COVID-19 might temper this outlook. the necessary leverage across all levels of the trade.

70 Apollo Tyres Ltd Annual Report 2020-21 71

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Management Discussion and Analysis

Internal Controls and Systems Discussion on financial performance with

The Company believes that Internal Control is one of the revenue and profitability, but also for maintaining financial respect to operational performance
key pillars of governance, which provides freedom to the and commercial discipline. The financial statements have been prepared in accordance with the requirement of the Companies Act, 2013, and applicable
management within a framework of appropriate checks accounting standards issued by the Institute of Chartered Accountants of India. The management of Apollo Tyres Ltd accepts
The Company has a well-established independent in-house
and balances. It has a robust internal control framework, the integrity and objectivity of these financial statements as well as the various estimates and judgments used therein. The
Internal Audit function that is responsible for providing
which has been instituted considering the nature, size estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order
assurance on compliance with operating systems, internal
and risks in the business. The framework comprises, inter that the financial statements are reflected in a true and fair manner and also reasonably present the Company’s state of
policies and legal requirements, as well as suggesting
alia, a well-defined organisation structure, roles and affairs and profit for the year.
improvements to systems and processes. The Company (C Million)
responsibilities, documented policies and procedures and
has also identified and documented key internal financial Year ended Year ended
financial delegation of authority. Information Technology
controls for critical processes across all plants, warehouses Sl.
Particulars March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
(IT) policies and processes also ensure that they mitigate No.
and offices wherein financial transactions are undertaken. Standalone Consolidated
the current business risks. These policies are complimented
The financial controls are evaluated for operating 1. Revenue from operations
by a management information and monitoring system,
effectiveness through management’s ongoing monitoring Sales 113,545 108,327 169,546 160,965
which ensures compliance with internal processes, as well as
and review process, and independently by Internal Audit. Other operating income 3,789 2,356 4,424 2,537
with applicable laws and regulations.
Total (1) 117,334 110,683 173,970 163,502
The Head of Internal Audit reports functionally to the
The Company’s internal control environment ensures 2. Expenses
Audit Committee and administratively to the Chairman
efficient conduct of operations, security of assets, a) Cost of materials consumed 62,383 60,730 70,653 70,498
and Managing Director of the Company. Key internal
prevention and detection of frauds/errors, accuracy b) Purchase of stock in trade 6,948 6,517 20,093 18,342
audit findings are presented to the Audit Committee at its
and completeness of accounting records and the timely c) Changes in inventories of finished goods, 69 1,128 3,198 1,917
quarterly meetings. stock-in-trade and work-in-progress
preparation of reliable financial information. The Company
uses SAP—an Enterprise Resource Planning (ERP) Most importantly, the senior management sets the tone at d) Employee benefits expense 9,109 8,261 25,134 24,822
software—as its core IT system. The systems and processes the top of no tolerance to non-compliance and promotes a e) Other expenses 18,481 20,055 26,917 28,537
Total (2) 96,991 96,691 145,995 144,116
are continuously improved by adopting best-in-class culture of continuous innovation and improvement.
3. Operating profit (EBITDA excluding other income) 20,343 13,992 27,975 19,386
processes and automation and implementing the latest IT
(1 - 2)
tools. The operating management is not only responsible for 4. Other income 1,215 286 1,294 237
5. Less: Finance costs 3,794 2,257 4,430 2,808
6. Less: Depreciation & amortization expenses 7,134 6,207 13,150 11,381
7. Profit before share of profit/ (loss) in associate / joint 10,630 5,814 11,689 5,434
venture, exceptional items & tax
8. Share of profit / (loss) in associate / joint venture - - 0 (0)
9. Exceptional items (110) - (6,077) -
10. Profit before tax 10,520 5,814 5,612 5,434
11. Less: Provision for tax
Current tax 1,904 1,027 2,247 1,274
Deferred tax 1,388 (299) (137) (604)
Total 3,292 728 2,110 670
12. Profit after tax 7,228 5,086 3,502 4,764

KEY FINANCIAL RATIOS

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the
Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately
previous financial year) in key financial ratios. Please note that there is no significant change of 25% or more in Key Ratios viz.
Debtors Turnover, Inventory Turnover, Interest Coverage Ratio and Debt Equity Ratio as compared to the previous year other
than the following:-
Sl.
Particulars FY21 FY20 % Change Explanation
No
1 Current Ratio 1.13 0.71 59% Increase in current ratio is due to increase in working capital.
2 Operating Profit Margin 18.99 13.18 44% Increase in operating profit margin is due to saving in fixed cost and better raw material prices.
3 Net Profit Margin 6.37 4.70 36% Increase in net profit margin is due to saving in fixed cost and better raw material prices.

CHANGE IN RETURN ON NET WORTH

Sl.
Particulars FY21 FY20 % Change
No
1 Return on Net Worth* 8.42 6.63 27%

*Return on Net Worth is computed as Net Profit by Average Net Worth. Increase in Return on Net Worth is primarily due to increase in Net Profit
from ₹ 5,086.24 million to ₹ 7,228.21 million.

72 Apollo Tyres Ltd Annual Report 2020-21 73

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Management Discussion and Analysis

Information Technology Health, Safety and

In FY21, a new Chief Digital Officer, Hizmy Hassen Environment (HSE)
joined the team at Apollo. His introduction has led to the
Apollo Tyres is steadily moving forward in its HSE culture
development of a detailed digital strategy to underpin
transformation journey with strong integration of the
the business goals focused on driving transformation in
practices with business processes. Synergised efforts
customer experience, integrating the global supply chains
are introduced in key focus areas across the Company’s
to deliver target customer service and efficiency gains
eco-system to structure HSE risk management along with
as well as drive the agenda on Industry 4.0. The digital
mechanisms to ensure active participation of members.
strategy will also support the back-office optimisation
project by facilitating the creation of Centres of Excellence During FY21, the Chairman and Vice Chairman and
(CoEs). Managing Director (VCMD) conducted periodic
engagement sessions to inculcate the HSE culture within
The Company has already started its journey to the cloud.
the organisation. HSE KPIs were reviewed and monitored at
All IT users have migrated to the cloud for their mail,
various governance levels and necessary actions were taken
personal files and collaboration, which also facilitates the
to drive the agenda. The impact of this effort was evident
‘new way of working’ post the pandemic. Cloud technology
in the Company’s FY21 Safety performance, where the lost
is also being used to stream data from its production
time injury frequency rate (LTIFR) reduced by 31% over the
plants to use advanced analytics to drive greater machine
previous year.
efficiency.

The Company recognises that cyber threats have increased

Intensive efforts were made to review the Risk Management In view of the challenges posed by the ongoing pandemic,
Development in Human
Resources & Industrial Relations
practices pertaining to the COVID-19 situation. Functional the Company published and reviewed weekly status reports
significantly during the pandemic owing to perimeter
level controls were introduced, new workplace models and to ensure timely interventions were put in place to manage
security issues when employees work from home. To address
guidelines were developed and training and awareness the risk. Proactive changes were introduced to reduce Human Resources (HR) at Apollo Tyres continued to play
this, a major programme has been implemented to enhance
initiatives were conducted periodically. The relevant impact. These included changes in the transportation a pivotal role in managing, guiding and motivating the
security, upgrade servers and network devices and increase
guidelines undergo regular review and updation based on system and manufacturing and non-manufacturing Company’s workforce. As a strategic partner, the function is
awareness across its IT users, globally.
the latest information about COVID-19 risks and controls. operations and introduction of a remote working model aligned with the business needs.
During this pandemic year, there has been increased that prioritised the health and safety of the people.
Safety measures were further consolidated through During the pandemic, the Company focussed on Learning
digitisation in go-to-market across industries. In tandem
technology-based interventions. The Virtual Gemba Functional Ownership HSE leading and lagging indicators and development as a key to future-proof the organization.
with these changing times, the Company launched several
observation and video standard systems were introduced are defined at a functional level and monitored periodically It launched Apollo Virtual Academy (AVA) for employee
digital tools to drive transformation in customer experience.
in line with the leadership’s vision of re-engineering Apollo. through safety council meetings. This has led to proactive engagement and learning and development. Under the
In the APMEA region, it launched a consumer-facing app
Establishing the foundation of Apollo Tyres Health and identification of accident-prevention opportunities through umbrella of AVA, 23 in-house and live global webinars
that enabled online purchase and fitment of tyres in one
Safety mission is underway with the aim to launch in FY22. near-miss reporting, unsafe acts and unsafe conditions were hosted, and 38 virtual online self-paced courses
omni channel experience. It has also extended its B2B
reporting. were offered to employees globally on its digital learning
portal in India to facilitate export orders. In Europe, the With HSE being essential for sustainable progress, several
platform. In Europe, specialised programme was run for Key
B2B platform was upgraded to provide customers with steps were taken to accentuate its importance to the The Company expanded its IRF certification to its CV zones
Account Managers in Sales to build up their skills. Further
access to tyre stocks across the supply chain. This increased management. The ‘Speak Up for Safety’ programme was across India. Apollo Road safety month was celebrated
in the Enschede plant and due to its specialization various
availability and empowered customers through fulfillment introduced in FY21 to personally reach out to associates as with engagement activities across CV zones emphasising
training schemes were put in place to upskill the employees.
choices. part of a micro-learning programme. on COVID-19 preventive controls, vehicle visibility on road,
vehicle health and personnel accident insurance among In India, the focus was also on organisational behavioural
The Company’s supply chain strategy will see an increasing
drivers. Social media campaigns on road safety were programme titled Apollo ONE. This is a change
level of inter and intra-regional product movement. To
rolled out in an effort to promote awareness, including a management programme which aims at building high-
facilitate this, it has been using technology to digitise and
‘Dim the Lights’ campaign focusing on the impact of high performing and high-trust teams. The ADMIRE programme
integrate supply chains into a single global one. Driving
beam systems. on capability development in sales continued to provide
efficiency and agility enabling greater accuracy, this
the necessary learning. Multiple L&D initiatives have
integration will be key to delivering seamless customer The Company’s manufacturing plants further strengthened
been carried out at various plants including Knowledge
service at target working capital levels. An Advanced risk-based approach and established the controls on
House and ASPIRE in Limda plant. A special Learning Day
Supply Chain Management system will be introduced to machine safety and introduced additional guards, interlocks
was celebrated at the Kerala plant to upskill functional
implement this strategy. and physical barriers. No-go inspection parameters were
knowledge. At Andhra plant, apart from conducting
introduced to minimize critical risk behaviours. Emergency
In addition, the Company has implemented several new an E-Learning Week, an Internal Capability Building
mock drills continued to be conducted to test and upgrade
technologies to improve internal controls, especially in the programme was organised. In Chennai, programmes like
the emergency response system in various scenarios with a
purchase-to-pay process. Privileged access to the systems FLM training and Skill Connect were conducted, wherein
focus on the pandemic-laced risk factors.
have been secured with new tools and added governance. under Skill Connect, digitalisation of skill level assessments
Access control has been implemented with stronger Structured and timely awareness and communication were done for employees.
passwords and two-factor authentication. initiatives played an important role in the precautions and
actions undertaken in face of the changing scenario. All
communication adhered to the respective country and
WHO guidelines.

74 Apollo Tyres Ltd Annual Report 2020-21 75

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Management Discussion and Analysis

ENVIRONMENT SOCIAL

During FY21, the Company continued its efforts in the Within the health space, the Company continued to ramp
core areas of Biodiversity Conservation and Waste up its healthcare programme for the trucking community
Management. Local initiatives included activities towards across 32 centres in 19 Indian states. There was extensive
Climate Change Mitigation and Watershed Management. effort to create awareness with the distribution of
resources and information about COVID-19 through various
The Mangrove Conservation initiative was appreciated by
mechanisms and platforms across various communities of
the Haritha Kerala Mission of the state government. The
over a million people.
mission recognised the ecological restoration initiatives
undertaken by the project and its contribution towards the Apollo has joined the ‘Jan Andolan’ to contribute to India’s
‘Pachathuruth’ initiative led by the state. National Tuberculosis (TB) Elimination Programme, which
aims to eradicate TB from India by 2025. Towards this, the
In Europe, the Company joined hands with Municipality of
Company has collaborated with the Union and Central TB
Enschede on the ‘Stadsbeek’ project ,which aims to address
Division. In the reporting year, two webinars on the theme
the issues pertaining to rainwater and groundwater to
of Partnership for Action against TB were organised to
improve the living environment of the area.
encourage corporate partnerships for TB elimination. The
effort has earned recognition from the Ministry of Health
and Family Affairs. The Healthcare Centres continue to
provide COVID-19 awareness and first screening to the
trucking community.

Under the Community Development theme, the focus has

Recognition and Appreciation Badges were given to the been around aiding the livelihood and income generation of
colleagues and leaders for their amazing work and out-of- women and farmers to improve farming practices. As part
the-box thinking. In Europe, the Company joined of this initiative, women who received tailoring training
contributed to the production of face masks and PPE.
With the outbreak of COVID-19, the Company introduced
a COVID Helpline, additional insurance covering parents of
hands with Municipality of Around 100 underprivileged women from various tailoring

employees, the Corona Kavach policy, home ergonomics Enschede on the ‘Stadsbeek’ units across locations stitched over 1 million reusable cloth
masks for employees, communities and other stakeholders
and the Sanjeevani programme to ensure employee health
and wellness. project, which aims to address with earnings over C1 million in a month’s time.

Apollo Tyres believes in providing learning and growth for

its employees through lateral opportunities. The approach
Labour relations remained conducive in all Indian the issues pertaining to One of the Company’s livelihood initiative for
underprivileged, Navya, ran an ongoing campaign in
facilitates the employees’ prospects while the organisation
operations. The Company has consistently worked in
collaboration with trade unions and other employee bodies
rainwater and groundwater. partnership with the French Institute in India to felicitate
can leverage well-inducted candidates with a deep eight exemplary women beneficiaries for the second
to improve the working environment for its people as well
understanding of the business and culture. consecutive year.
as the productivity and cost-effectiveness of operations. In
Employee engagement became paramount in the year Enschede, the focus remained on specialisation in an effort
of the pandemic. In India, the Company explored several to significantly improve the future viability.
engagement initiatives in the form of competitions,
employee forums and interest groups that proved to be
enjoyable and effective.
Sustainability and CSR
In an effort to boost morale and motivate employees,
The sustainability journey started in 2010 and has grown
the Company runs several recognition programmes. The
from strength to strength over the years. As part of
Chairman’s Award ‘Employee of the Year’ is reserved
Sustainability Governance, the Company actioned a plan to
for high performance in senior management while the
adopt the ISO 26000, the international guidelines on social
coveted ‘Roll of Honour’ is awarded for excellence in middle
responsibility and sustainable development whereby the
management. The long service award ‘Apollo Pillars’
Standard Operating Procedures (SOPs) of four core of the
was introduced to recognise and reward the long-term
seven issues - Fair Operating Practices, Consumer Issues,
contribution of the employees towards the growth and
Environment and Community Development – are assured
success of the organisation.
by a third party. The adoption of the fifth core subject on
During FY21, the Company introduced the ‘Chairman’s Labour Practices is under progress. Further, across its key
Recognition Week 2020’ which was celebrated by regions, the Company continued to focus its CSR activities
employees globally. The event recognised the contribution around its two key themes - ‘Environment’ and ‘Social’.
of those who won the Apollo Pillars and Catalysts Within Social, there are two sub themes - Health and
awards. Winners of ‘Roll of Honour’ were announced and, Community Development.

76 Apollo Tyres Ltd Annual Report 2020-21 77

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Board’s Report The year saw availability concerns in key raw materials such
as Nylon Fabric, Carbon Black, Polyester, Beadwire and Steel
Mr. Vinod Rai (DIN: 00041867) was re-appointed as an
Independent Director of the Company, not liable to retire
Tyre Cord. The Company managed to secure the supplies of raw by rotation, to hold office for a second term of 5 consecutive
materials through continued focus on new vendor development, years with effect from February 9, 2021 to February 8, 2026,
Dear Member,
long term contracts and partnership approach with its Raw by the Members through resolution passed by Postal Ballot
Your Directors have pleasure in presenting the 48th Annual Report on the business and operations of Apollo Tyres Ltd. (“the Company”), Material Business Partners. The Company shared its vision and on September 24, 2020. The Board noted that his continuous
together with the audited financial statements for the financial year ended March 31, 2021. expectation from its partners through a virtual Global Partners’ association would be of benefit to the Company.
Summit conducted in Sept 20. The partners were also recognized
Pursuant to the provisions of Section 152(6) of the
FINANCIAL PERFORMANCE for their best practices during the Summit.
Companies Act, 2013, Mr. Satish Sharma (DIN: 07527148)
The financial performance of the Company for the financial year ended March 31, 2021 is summarised below: The Customs duty @20% on imports of Nylon Fabric continued and Mr. Francesco Gori (DIN: 07413105), Directors of the
(` Million) during the year. This together with the duty on Natural Rubber Company, are liable to retire by rotation and being eligible
Year ended Year ended points to a continuing inverted duty structure. The antidumping offers themselves for re-appointment.
Particulars March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 duty on imports of Styrene Butadiene Rubber (SBR) from Korea,
The Board is of the opinion that the Independent Directors
Standalone Consolidated Thailand and Europe and on imports of Rubber Chemicals from
of the Company possess requisite qualifications, experience
Sales 113,545 108,327 169,546 160,965 Europe remained in force during the year.
and expertise and hold highest standards of integrity.
Other operating income 3,789 2,356 4,424 2,537
The global shipping and logistics industry faced shortages of
Revenue from operations 117,334 110,683 173,970 163,502 None of the aforesaid Directors are disqualified under
containers, blank sailings, port congestion leading to sharp spike
Operating profit (EBITDA excluding other income) 20,343 13,992 27,975 19,386 Section 164(2) of the Companies Act, 2013. Further, they
in Ocean Freight rates during the second half of the year adding
Other income 1,215 286 1,294 237 are not debarred from holding the office of Director pursuant
to the cost push. The Company continued its focus on conserving
Less: Finance costs 3,794 2,257 4,430 2,808 to order of SEBI or any other authority.
cash through optimizing the inventory levels.
Less: Depreciation & amortization expenses 7,134 6,207 13,150 11,381
Profit before share of profit/ (loss) in associate/ joint 10,630 5,814 11,689 5,434 B) Changes in Directors and Key Managerial Personnel
DIVIDEND
venture, exceptional items & tax During the year under review and between the end of the
Share of profit/ (loss) in associate/ joint venture - - 0 (0) Your Company has a consistent track record of dividend financial year and on the date of this report, except the
Exceptional items (110) - (6,077) - payment. In compliance with the Dividend Distribution Policy aforementioned Appointments/ Re-appointments of
Profit before tax 10,520 5,814 5,612 5,434 of the Company, the Directors are pleased to recommend a Directors, there are no other change in Directors and Key
Less: Provision for tax 3,292 728 2,110 670 dividend of ` 3.50 (350%) per share of Re. 1/- each on Equity Managerial Personnel of the Company.
Profit after tax 7,228 5,086 3,502 4,764 Share Capital of the Company for FY21 for your approval.
C) Declaration by Independent Directors
OPERATIONS RAW MATERIALS The dividend, if approved, shall be payable to the Members
In terms with Section 149 (7) of the Companies Act, 2013,
holding shares as on cut-off date i.e. July 16, 2021.
In our key market, India, the tyre industry is closely linked to the The year under review had two distinct themes, the first half Independent Directors of the Company have submitted
automobile industry. FY21 saw lockdowns across the country, of the year saw the impact of COVID-19 induced lockdowns declarations that they meet the criteria of Independence
RESERVES
wiping out majority of the first quarter of the fiscal. While the leading to demand contraction and significant fall in the raw as provided in Section 149(6) of the Companies Act, 2013
sales saw a rebound in the second half of the fiscal, it was not material cost. The second half of the year showed a remarkable The amount available for appropriations, including surplus from and also Regulation 16(I)(b) of the SEBI (Listing Obligations
enough to cover the loss of the first half of the year. According recovery in automobile production, return of the demand from previous year amounted to ` 45,339 million. Surplus of ` 42,116 and Disclosure Requirements) Regulations, 2015.
to the data released by ATMA for 11-months, the tyre industry the aftermarket leading to sharp rise in the raw material cost. million has been carried forward to the balance sheet. A general
The Independent Directors have also complied with the
declined by around 8% as compared to the 11-months numbers reserve of ` 1,000 million has been provided.
Oil prices moved to USD 25/barrel in April 20 on account of Code for Independent Directors as per Schedule IV of the
of FY20.
lockdowns in most parts of the world. Increased buying by Companies Act, 2013. All our Independent Directors are
BOARD OF DIRECTORS
In the Company’s other key market, Europe, the tyre industry China led to prices recovering to USD 40/barrel by June. The registered on the Independent Directors Databank.
performed poorly due to multiple reasons. Pandemic along Crude prices staged a comeback from November 20 onwards A) Appointment/ Re-appointment of Directors
with lull in the economic activity saw adverse impact on sales on account of vaccine roll out, return of demand and OPEC Mr. Francesco Crispino (DIN: 00935998) was appointed as D) Formal Annual Evaluation
in the region. A detailed analysis of the tyre industry for India supply management strategy. The year ended with Crude prices an Independent Director of the Company, not liable to retire Pursuant to the provisions of the Companies Act, 2013, the
and Europe has been shared in the Management Discussion and crossing USD 70/bbl. In Q4 FY21 Brent Crude prices were 20% by rotation, to hold office for a term of 5 consecutive years Board is required to carry out annual evaluation of its own
Analysis section of the annual report. higher than the same period last year. with effect from July 3, 2020 to July 2, 2025 by the Members performance and that of its Committees and individual
at the AGM held on August 20, 2020. Directors. The Nomination and Remuneration Committee
The standalone revenue from operations of your Company was The USD/ INR exchange rate averaged 74.0 in FY21 as against
(NRC) of the Board also carries out evaluation of every
` 117,334 million during FY21 as against ` 110,683 million during 70.8 in FY20. The rupee weakened by 5% during the fiscal year. Mr. Vishal Mahadevia (DIN: 01035771) was appointed as a
Director’s performance. Accordingly, the Board and NRC of
the previous financial year. EBIDTA (excluding other income) was Non-Executive Non-Independent Director of the Company,
The weakness in demand due to the lockdowns in Q1 led to Natural your Company have carried out the performance evaluation
at ` 20,343 million as compared to ` 13,992 million during the liable to retire by rotation with effect from August 21, 2020
Rubber prices touching a level of `120/kg. The prices gained during the year under review.
previous financial year. The Net Profit for the year under review by the Members through Postal Ballot dated September 24,
momentum from August 20 onwards clocking a level of `135/
was `7,228 million, as against ` 5,086 million in the previous fiscal. 2020. For annual performance evaluation of the Board as a whole,
kg and breaching the barrier of `160/kg by December 20. The
it’s Committee(s) and individual Directors including the
The consolidated revenue from operations of your Company was decision to hike the Minimum Support Price of Natural Rubber General Bikram Singh (Retd.) (DIN: 07259060) was re-
Chairman of the Board, the Company has formulated a
` 173,970 million during FY21, as compared to ` 163,502 million to `170/kg led to prices climbing to this level in March 21. The appointed as an Independent Director of the Company,
questionnaire to assist in evaluation of the performance.
in FY20. The consolidated EBITDA (excluding other income) was inverted duty on Natural Rubber at 25% or `30/kg whichever is not liable to retire by rotation, to hold office for a second
Every Director has to fill the questionnaire related to the
` 27,975 million for FY21 as compared to ` 19,386 million for lower continued during the year. The demand supply gap to the term of 3 consecutive years with effect from August 11,
performance of the Board, its Committees and individual
the previous financial year. On consolidated basis, Apollo Tyres tune of 45% in India and lack of availability of suitable grades for 2020 to August 10, 2023, by the Members at the AGM held
Directors except himself by rating the performance on each
earned a Net Profit of ` 3,502 million for FY21 as against ` 4,764 radial application led to continued imports of Natural Rubber. on August 20, 2020.The Board noted that his continuous
million for the previous financial year. The port restriction on imports of Natural Rubber remained in association would be of benefit to the Company.
force during the year.

78 Apollo Tyres Ltd Annual Report 2020-21 79

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

question on the scale of 1 to 5, 1 being Unacceptable and 5 month after month. In the Truck Bus Bias (TBB) segment, the Against such an outlook, the Company continues to have has an initial capacity to produce 30,000 motorcycle radials and
being Exceptionally Good. Company launched its bias rib tyre, Apollo Abhimanyu, which a cautious approach. The focus is on employee safety and 60,000 motorcycle cross ply tyres per month and will cater to the
has been tested for more than 2.5 million kms of field and indoor conserving cash. The Company is re-engineering production and premium segment of the two-wheeler industry.
On the basis of the response to the questionnaire, a matrix
testing. The Company also launched its premium drive tyre, cutting down on all avoidable costs and focusing on the good
reflecting the ratings was formulated and placed before
Apollo XT100 HD, the new flagship Bias drive tyre in the TBB cost – R&D, eTraining, brand building, etc. MATERIAL CHANGES AND COMMITMENTS
the Board for formal annual evaluation by the Board of its
range.
own performance and that of its Committees and individual For the APMEA region, it has planned key launches in the M&HCV Except the impact of COVID-19 as mentioned in this report,
Directors. The Board was satisfied with the evaluation In the Pickups and Small Commercial Vehicle (SCV) category, category for FY22 in TBB and TBR categories including some no material changes and commitments affecting the financial
results. the Company’s Endumaxx LT has found fitments in reputed future flagship products to further improve market share. In other position of your Company have occurred between the end of the
OEMS including Ashok Leyland, Tata Motors and Isuzu, as well categories like LCV/SCV, 2W and OHT, it will continue its efforts financial year of the Company to which the financial statements
E) Separate Meeting of Independent Directors as increased market share in the replacement market. to drive radialisation as it offers the best value to customers and relate and on the date of this report.
In terms of requirements under Schedule IV of the Companies maintaining the strong technology position of the Company.
In the Passenger Vehicle category, the Company launched
Act, 2013 and Regulation 25(3) of SEBI (Listing Obligations SIGNIFICANT MATERIAL ORDERS PASSED BY REGULATORS
Apterra Cross for the Compact SUV segment, even as its flagship Europe region has been working on refreshing its entire portfolio
and Disclosure Requirements) Regulations, 2015, a separate
pattern, Apterra HT2, for the SUV segment continued to be one in last 2 years. The region is confident that these upgraded No significant material orders have been passed during the year
meeting of the Independent Directors was held on February
of highest growing pattern. products will help it to consolidate and grow its position in under review by the regulators or courts or tribunals impacting
5, 2021.
the market. The region will continue to focus on the all season the going concern status and Company’s operations in future.
To cater to the growing and highly profitable luxury car segment,
The Independent Directors at the meeting, inter alia, segment where the Company has been one of the pioneers.
the Company expanded its Aspire 4G portfolio and now has the
reviewed the following:- The newly introduced high performing products and the widest CHANGE IN THE NATURE OF BUSINESS, IF ANY
complete tyre portfolio to cater to luxury car brands.
portfolio of sizes will help consolidate and grow the position in
There is no change in the nature of business of your Company
• Performance of Non- Independent Directors and Board as During the year, the Company inaugurated its motorcycle tyre this segment.
during the year under review.
a whole. plant in Vadodara, Gujarat for high end cross ply and steel radial
Further, the Company has refreshed its summer range with the
products. The fiscal saw the Company launching a specialized
• Performance of the Chairman of the Company, taking new Ultrac and upgraded Vorti+. These new products will help INTERNAL FINANCIAL CONTROLS
off-road pattern for Royal Enfield motorcycles – actiGRIP R6 and
into account the views of Executive Directors and Non- build a position in the summer tyre category. It has firmed up
actiGRIP F6. Internal Financial Control (IFC) means the policies and procedures
Executive Directors. plans to accelerate the introduction of ‘Apollo’ branded TBR tyres
adopted by the Company for ensuring the orderly and efficient
In Europe, the Company completed its specialization of its plant and Industrial tyres in key European markets.
• Assessed the quality, quantity and timeliness of flow of conduct of its business, including adherence to Company’s
in Enschede, The Netherlands. This will help it to make the Dutch
information between the Company Management and policies, the safeguarding of its assets, timely prevention and
operations economically viable as it focusses on profitable COMMISSIONING OF ANDHRA PRADESH GREENFIELD
the Board that is necessary for the Board to effectively detection of frauds and errors, the accuracy and completeness
products like agricultural tires and high value - niche segment FACILITY
and reasonably perform their duties. of the accounting records, and the timely preparation of reliable
passenger car tyres.
The Company’s 7th manufacturing unit globally, and the fifth one financial information.
F) Remuneration Policy
During the fiscal, the Company has revamped the product in India was commissioned on June 25, 2020 virtually and the first
The Board has, on the recommendation of the Nomination The Company has identified and documented key internal
portfolio of Apollo branded tyres in Europe. While the market tyre was rolled out from the Andhra Pradesh greenfield facility in
& Remuneration Committee, laid down a Nomination financial controls as part of Standard Operating Procedures
share of the Vredestein brand remained stable over the fiscal, the southern part of the country.
& Remuneration Policy for selection and appointment (SOPs). The SOPs are designed for critical processes across all
given the decline in the PV tyres market, the Company inched its
of the Directors, Key Managerial Personnel and Senior Located in Chinnapanduru village in Chittoor district of Andhra plants, warehouses and offices wherein financial transactions
market share up in Ultra High Performance (UHP) and Ultra Ultra
Management and their remuneration. The extract of the Pradesh (AP), this facility of the Company is spread over 256 are undertaken. The SOPs cover the standard processes, risks,
High Performance (UUHP) segments. In Industrial Construction
Nomination and Remuneration Policy covering the salient acres. The Company will invest close to `40,000 million in the key controls and each process is identified to a process owner. In
segment, the Company added new OEM customers including
features are provided in the Corporate Governance Report Phase I of this greenfield facility. While the capacity will be addition, the Company has a well-defined Financial Delegation
Caterpillar and Liebherr and posted good growth riding on back
forming part of Board’s Report. ramped up gradually, as the demand improves, by 2022, this of Authority (FDoA), which ensures approval of financial
of a strong replacement volumes.
plant will have a capacity to produce 15,000 passenger car tyres transaction by appropriate personnel.
The Nomination & Remuneration Policy of the Company is
A detailed analysis of the Company’s key initiatives for both and 3,000 truck-bus radials per day. With a modular layout,
available on the website of the Company and the web link The Company uses SAP-ERP to process financial transactions
regions have been shared in the Management Discussion and the capacity at this facility can be increased with minimal
is: https://corporate.apollotyres.com/investors/corporate- and maintain its books of accounts. The SAP has been setup
Analysis section of the annual report. engineering efforts and with economies on investments.
governance/?filter=CodesPolicies to ensure adequacy of financial transactions and integrity &
This highly automated plant uses IT driven systems and reliability of financial reporting. SAP was implemented in the
FUTURE OUTLOOK
G) Code of Conduct for Directors and Senior Management robotics and employs young and skilled associates on the shop European operations in year 2016. SAP was also implemented
The Company has formulated a Code of Conduct for Directors The second wave of COVID-19 pandemic means bad news for the floor, mostly hired locally. The deployment of state-of-the- at Company’s Greenfield plants in Hungary and Andhra Pradesh.
and Senior Management Personnel and has complied with various economies, including India. International Monetary Fund art manufacturing technologies at this facility will enable the
The financial controls are evaluated for operating effectiveness
all the requirements mentioned in the aforesaid code. For (IMF) is projecting a global growth at 6% in 2021, moderating to Company to target premium OEMs and aftermarket customers
through management’s ongoing monitoring and review process,
further details, please refer the Corporate Governance 4.4% in 2022. Of course, high uncertainty surrounds this outlook in India. This will further consolidate the Company’s vision of
and independently by Internal Audit. The testing of controls by
Report. in relation to the path of the pandemic, the effectiveness of policy providing world quality products to global markets.
Internal Audit are divided into three separate categories viz.
support to provide a bridge to vaccine-powered normalization,
a) automated controls within SAP, b) segregation of duties within
PRODUCT & MARKETING and the evolution of financial conditions. In Europe, the economic INAUGURATION OF A TWO WHEELER MANUFACTURING
SAP and restricted access to key transactions, c) manual process
activities are currently undergoing stress due to COVID-19 FACILITY
In FY21, the APMEA operations continued its focus on key themes controls.
induced lockdowns and falling demand. As per the IMF, the
for the Indian market - consolidating its leadership position and A dedicated commercial facility to manufacture two wheeler
European economy is expected to recover by 4.7% in 2021. In its In our view, the SOPs, FDoA, SAP-ERP and independent reviews
expanding market share by introducing new products across radial and cross ply tyres in Company’s Limda Plant was virtually
update in April, IMF said it expects India’s GDP to grow 12.5% in by the Internal Audit help in establishing adequate internal
segments. During the fiscal, the Company inaugurated its new inaugurated on July 15, 2020 by Mr. Onkar Kanwar, Chairman
FY22, the highest among emerging and advanced economies. financial controls with reference to its financial statements and
greenfield plant in Andhra Pradesh, India. and Managing Director.
GDP growth for FY23 is pegged at 6.9%. India is the only country such internal financial controls are operating effectively.
In the Medium and Heavy Commercial Vehicle (M&HCV) expected to register a double-digit growth this fiscal. However, This facility, spread over more than 10,000 square meter area, is
category, the Company’s truck range registered all time highest the rapid spread of the second wave of COVID-19 might temper housed within Company’s Limda plant in Vadodara. This facility
numbers and from Q3 onwards peaked at highest ever sales the bullish outlook.

80 Apollo Tyres Ltd Annual Report 2020-21 81

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

MANAGEMENT DISCUSSION AND ANALYSIS REPORT Launch of a new visual identity for the Vredestein brand, International Ltd), had been appointed as Statutory Auditors of AUDIT COMMITTEE
including an updated logo and a new vibrant colour scheme your Company for a period of 5 years from FY18 to FY22 at the
As required by Regulation 34 (2) of the SEBI (Listing Obligations The details of the Audit Committee including its composition
was a major brand promotion initiative during the year Annual General Meeting held on July 5, 2017.
and Disclosure Requirements) Regulations, 2015, a detailed and terms of reference mentioned in the Corporate Governance
which translated into a complete set of on-line and offline
Management Discussion and Analysis Report is presented in a Report form part of Board’s Report.
advertising campaigns. Three product introductions for AUDITORS’ REPORT
separate section forming part of the Annual Report.
passenger car tyres were launched virtually including the The Board, during the year under review, had accepted all
The report given by M/s. Walker Chandiok & Co LLP, Chartered
creation of a digital experience centre for the Vredestein recommendations made to it by the Audit Committee.
SUBSIDIARY/ ASSOCIATE COMPANIES Accountants, Statutory Auditors on financial statements of the
brand and live streams with Company’s top executives.
Company for FY21 is part of the Annual Report. The comments
As the Company follows its vision to become a global tyre brand VIGIL MECHANISM
FY21 was a landmark year for new product introductions on statement of accounts referred to in the report of the Auditors
of choice, it has multiple Subsidiaries for facilitating these
across segments. are self explanatory. The Auditors’ Report does not contain any The Company has formulated a vigil mechanism through Whistle
operations in various countries. As on March 31, 2021, your
qualification, reservation or adverse remark. Blower Policy to deal with instances of unethical behaviour,
Company had 34 Overseas Subsidiary Companies (including step
b) Apollo Tyres (Hungary) Kft. actual or suspected, fraud or violation of Company’s code of
subsidiaries), 1 wholly owned Subsidiary in India, 1 Associate During the year under review, the Auditors had not reported
Apollo Tyres (Hungary) Kft. is one of the latest manufacturing conduct or ethics policy. The details of the policy are explained
Company and 1 Joint Venture. any matter under Section 143(12) of the Companies Act, 2013.
facility within Apollo Tyres group. The Company produces in the Corporate Governance Report and also posted on the
Therefore, no detail is required to be disclosed under Section
Vredestein Marketing B.V., a wholly owned subsidiary of Apollo both passenger and commercial vehicle tyres. website of the Company.
134(3)(ca) of the Companies Act, 2013.
Vredestein B.V. was liquidated on September 30, 2020.
During FY21, the Company continued to ramp up its
COMMITTEES OF BOARD
Apollo Tyres Centre of Excellence Limited, a wholly owned production capacity for both product categories. COST AUDIT
subsidiary of the Company was incorporated in India on October Pursuant to requirement under Companies Act, 2013 and SEBI
M/s. N.P. Gopalakrishnan & Co., Cost Accountants, were
10, 2020. c) Apollo Tyres Holdings (Singapore) Pte. Ltd. (Listing Obligations and Disclosure Requirements) Regulations,
appointed with the approval of the Board to carry out the cost
The principal activities of the Company is of sourcing raw 2015, the Board of Directors has constituted various Committees
As per the provisions of Section 129 of the Companies Act, audit in respect of the Company’s plants at Perambra (Kerala),
materials for Apollo Tyres manufacturing plants in India and of Board such as Audit Committee, Nomination & Remuneration
2013, the consolidated financial statements of the Company, its Limda (Gujarat), Chennai (Tamil Nadu) and Chinnapandur
Europe besides the provision of other services to the group. Committee, Stakeholders Relationship Committee, Business
Subsidiaries and Associates are attached in the Annual Report. (Andhra Pradesh) as well as Company’s leased operated plant
56% of the raw material procurement is for Natural Rubber Responsibility Committee, Risk Management Committee and
The annual accounts of Subsidiaries and Associates will be made at Kalamassery (Kerala) for FY21.
for the year FY21. Major sourcing countries are Thailand, Corporate Social Responsibility Committee. The details of
available to shareholders on request and will also be kept for
Indonesia and China. Company has also started outsourcing Based on the recommendation of the Audit Committee, M/s. N.P. composition and terms of reference of these Committees are
inspection by any shareholder at the Registered Office and
finished goods for APMEA and Europe regions for certain Gopalakrishnan & Co., Cost Accountants, being eligible, have mentioned in the Corporate Governance Report.
Corporate Office of your Company. A statement in Form AOC-1
specific tyre categories. also been appointed by the Board as the Cost Auditors for FY21
containing the salient features of the financial statements of
subject to Members’ approval. The Company has received a SHARE CAPITAL
the Company’s Subsidiaries, Associates and Joint Venture for Global Supply Chain team based out of Singapore
letter from them to the effect that their re-appointment would
the year ended March 31, 2021 is also attached with financial consolidates and manages Global Ocean Freight, Transport During the year under review the 108,000,000 Compulsorily
be within the limits prescribed under Section 141(3)(g) of the
statements. Optimization, Offtake activities, Supply Chain Cost Convertible Preference Shares (CCPS) having face value of ` 100/-
Companies Act, 2013 and that they are not disqualified for
Analysis, Mould Management and Certification Projects. each were issued and allotted to Emerald Sage Investment Ltd
such re-appointment within the meaning of Section 141 of the
MATERIAL SUBSIDIARIES on April 22, 2020 and October 7, 2020, the same were converted
In addition, Corporate HR team, based out of Singapore, Companies Act, 2013. The remuneration to be paid to M/s. N.P.
to 63,050,966 Equity Shares on December 5, 2020. Consequent
Your Company has following material unlisted Subsidiaries viz. is managing and facilitating the effective deployment Gopalakrishnan & Co., for FY22 is subject to ratification of the
to the aforesaid conversion, the issued and paid up Equity Share
Apollo Vredestein B.V., Apollo Tyres (Hungary) Kft., Apollo Tyres of HR systems and policies, globally, in key areas such as shareholders at the ensuing AGM.
Capital of the Company has increased from 572,049,980 equity
B.V., Apollo Tyres Cooperatief U.A. and Apollo Tyres Holdings Talent Acquisition, Rewards & Mobility, Talent Management
Cost records as specified by the Central Government under Sub- shares to 635,100,946 equity shares.
(Singapore) Pte Ltd. as on March 31, 2021. and core HR processes, which are aligned to the business
Section (1) of Section 148 of the Companies Act, 2013 are made
objectives of Apollo Tyres with the mandate of enhancing The Issued, Subscribed and Paid-up Equity Share Capital of the
Pursuant to Regulation 24(1) of the SEBI (Listing Obligations and maintained by the Company.
organizational effectiveness and human capital utilization. Company as on March 31, 2021 was 635,100,946 equity shares
and Disclosure Requirements) (Amendment) Regulations, 2018,
of Re 1/- each.
Mr. Akshay Chudasama, an Independent Director of the Company SECRETARIAL AUDITOR
d) Apollo Tyres B.V.
was nominated as Director on the Board of Apollo Vredestein B.V.,
Apollo Tyres B.V. incorporated in Netherlands is a Holding Pursuant to the provisions of Section 204 of the Companies a) Issue of equity shares with differential rights
Apollo Tyres (Hungary) Kft., Apollo Tyres Holdings (Singapore)
Company with two Subsidiaries, Apollo Vredestein B.V. and Act, 2013 and the Companies (Appointment and Remuneration Your Company has not issued any equity shares with
Pte Ltd. and Ms. Pallavi Shroff, an Independent Director of the
Apollo Tyres (Hungary) Kft. of Managerial Personnel) Rules, 2014, your Company had differential rights during the year under review.
Company was nominated as Director on the Board of Apollo
re-appointed M/s. PI & Associates, Company Secretaries as
Tyres B.V. & Apollo Tyres Cooperatief U.A, with effect from
e) Apollo Tyres Cooperatief U.A. Secretarial Auditor of the Company for FY21 to undertake b) Issue of sweat equity shares
April 1, 2019.
Apollo Tyres Cooperatief U.A., a direct Subsidiary of the secretarial audit of the Company. Your Company has not issued any sweat equity shares during
Company, is incorporated in The Netherlands. The Company the year under review.
a) Apollo Vredestein B.V. The Secretarial Audit Report does not contain any qualification,
is primarily acting as a Holding Company for all overseas
Apollo Vredestein B.V. focuses on manufacturing, marketing, reservation or adverse remark. Secretarial Audit Report given
operations. c) Issue of employee stock options
sales and distribution of tyres for passenger cars, commercial by Secretarial Auditors is annexed with the report as Annexure I.
Your Company has not issued any employee stock options
vehicles, agricultural and industrial vehicles and bicycles. The
DEPOSITS during the year under review.
Company’s distribution network extends through Europe. MEETINGS OF THE BOARD OF DIRECTORS
During the year under review, your Company did not accept
During the year, the Company has completed specialization A calendar of meetings is prepared and circulated in advance to d) Provision of money by Company for purchase of its own
deposits covered under Chapter V of the Companies Act, 2013.
of its manufacturing plant in Enschede, The Netherlands. the Directors. During the year, 7 (seven) Board meetings were shares by employees or by trustees for the benefit of
After this reorganization, the plant will primarily produce convened and held. The intervening gap between the meetings employees.
AUDITORS
Ultra-high performance segment of passenger car tyres was within the period prescribed under the Companies Act, 2013 Your Company has not made any provision of money for
and continue to focus on premium agricultural tyres and M/s. Walker Chandiok & Co LLP, Chartered Accountants, Firm and SEBI (Listing Obligations and Disclosure Requirements) purchase of its own shares by employees or by trustees for
Spacemaster tyres. Registration No. 001076N/N500013 (the firm licenses audit Regulations, 2015. The details of all Board/ Committee meetings the benefit of employees during the year under review.
software as well as audit methodology from Grant Thornton held are given in the Corporate Governance Report.

82 Apollo Tyres Ltd Annual Report 2020-21 83

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

CONVERSION OF CCPS TO EQUITY SHARES Suitable disclosures as required by the Indian Accounting Executives of the Company. The RMC has a Risk Management CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
Standards have been made in the notes to the financial Charter and Policy that is intended to ensure that an effective FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year under review, the Company had allotted the
statements. The policy on related party transactions as approved Risk Management framework is established and implemented
following Compulsorily Convertible Preference Shares (“CCPS”) Particulars required under Section 134(3)(m) of the Companies
by the Board is uploaded on the Company’s website. within the organisation. The Company has also formed Internal
to Emerald Sage Investment Ltd, an affiliate of Warburg Act, 2013 read with Rule 8 of the Companies (Accounts) Rules,
Risk Committees (IRCs), which review risk registers for Asia
Pincus LLC 2014, regarding conservation of energy, technology absorption
MANAGERIAL REMUNERATION Pacific Middle East Africa (APMEA) Region including India,
and foreign exchange earnings and outgo, are given in Annexure
(a) 54,000,000 (Fifty four million) 6.34% CCPS having face Europe region and Corporate Functions including United States
a) The details required pursuant to Rule 5(1) of the Companies IV, forming part of this report.
value of ` 100/-each (“Tranche 1 CCPS”), at par, for cash, (US) Region headed by President (APMEA), President (Europe)
(Appointment and Remuneration of Managerial Personnel)
for an aggregate amount of ` 5,400,000,000 (Rupees five and Chief Financial Officer as Chairperson of the respective
Rules, 2014, are provided in the Corporate Governance ANNUAL RETURN
thousand four hundred million only) on April 22, 2020. Committees. The IRCs review each risk on a quarterly basis and
Report.
evaluate its impact and plans for mitigation. Further details As per Section 134(3)(a) of the Companies Act, 2013, the
(b) 54,000,000 (Fifty four million) 6.34% CCPS having face
b) During the year under review, Mr. Neeraj Kanwar (DIN: about the RMC including its composition are mentioned in the Annual Return referred to in Section 92(3) has been placed on
value of ` 100/- each (“Tranche 2 CCPS”) at par, for cash,
00058951), Vice Chairman & Managing Director, also Corporate Governance Report which forms part of the Board’s the website of the Company www.apollotyres.com under the
for an aggregate amount of ` 5,400,000,000 (Rupees five
received remuneration from Apollo Tyres (UK) Pvt. Ltd., Report. Investors Section (Refer link: https://corporate.apollotyres.com/
thousand four hundred million only) on October 7, 2020.
wholly owned Subsidiary of the Company. en-in/investors/corporate-governance/?filter=Others ).
The aforementioned Tranche 1 and Tranche 2 CCPS were CORPORATE SOCIAL RESPONSIBILITY
converted to Equity Shares aggregating to 63,050,966 at a PARTICULARS OF EMPLOYEES CORPORATE GOVERNANCE REPORT
The Company initiated its CSR activities way before the
conversion price of ` 171.29 and the allotment to Emerald Sage
Particulars of employees as required in terms of the provisions of Companies Act, 2013 came in existence. The Company has a Your Company always places major thrust on managing its affairs
Investment Ltd. was made on December 5, 2020.
Section 197 of the Companies Act, 2013, read with Rule 5(2) of well-defined CSR policy which is made as per the requirement of with diligence, transparency, responsibility and accountability
The aforesaid Equity Shares allotted to Emerald Sage Investment the Companies (Appointment and Remuneration of Managerial Section 135 of the Companies Act, 2013. All the CSR activities thereby upholding the important dictum that an organisation’s
Ltd have been listed on stock exchanges (NSE and BSE) and Personnel) Rules, 2014, are set out in Annexure A to the Board’s are aligned with National and Sustainable Development Goals. corporate governance philosophy is directly linked to high
permitted for trading effective from December 28, 2020. Report. The Company has a CSR team, who exclusively works towards performance.
achievement of CSR goals of the organisation. All the CSR
After the aforementioned allotment of Equity Shares, the The Company is committed to adopting and adhering to
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE activities of the Company are routed through registered trust
cumulative ownership of affiliates of private equity funds established world-class corporate governance practices. The
(Apollo Tyres Foundation) and runs under the close monitoring
managed by Warburg Pincus LLC, including the Allottee, is Your Company has in place a formal policy for prevention of sexual Company understands and respects its fiduciary role and
and guidance of CSR committee.
approximately 18%. harassment of its employees at workplace and the Company responsibility towards its stakeholders and society at large, and
has complied with provisions relating to the constitution of In the reporting year, the organisation has undertaken various strives to serve their interests, resulting in creation of value and
DEBENTURES Internal Committee under the Sexual Harassment of Women at initiatives related to Healthcare Programme for Trucking wealth for all stakeholders.
Workplace (Prevention, Prohibition and Redressal) Act, 2013. Communities, Solid Waste Management and Sanitation
During the year, the following series of Secured Redeemable The compliance report on corporate governance and a certificate
Programme for Communities, Livelihood for Underprivileged
Non-Convertible Debentures (NCDs) were issued and allotted During the year under review, there were no cases filed pursuant from M/s. Walker Chandiok & Co LLP , Chartered Accountants,
Women, Biodiversity Conservation and Philanthropy Initiatives;
by the Company on Private Placement basis:- to the Sexual Harassment of Women at Workplace (Prevention, Statutory Auditors of the Company, regarding compliance of the
focussing on eradicating hunger and poverty, preventive health
Prohibition and Redressal) Act, 2013. Furthermore, there was conditions of corporate governance, as stipulated under Chapter
Sl.
No. of NCDs @
Date of
and promoting education.
Series of NCDs Face Value `
Value (` in no pending compliant/ case at the beginning as well as ending IV of SEBI (Listing Obligations and Disclosure Requirements)
No. Million) Allotment
10,00,000 each of financial year. Corporate Social Responsibility Report, pursuant to clause Regulations, 2015 is attached herewith as Annexure V to this
1 APT 8.75% NCDs 5,000 5,000 April 9, 2020 (o) of sub section (3) of Section 134 of the Act and Rule 9 of report.
2030
HEALTH, SAFETY & ENVIRONMENT the Companies (Corporate Social Responsibility) Rules, 2014
2 Apollo Tyre 7.70% 5,000 5,000 May 18, 2020
including salient features mentioned under outline of Company’s DIRECTORS’ RESPONSIBILITY STATEMENT
NCDs 2025 As a firm commitment to Health, Safety and Environment (HSE),
CSR policy forms part of this Report as Annexure II.
the year saw multiple initiatives to implement and review the As required by Section 134(3)(c) of the Companies Act, 2013,
The aforesaid NCDs are listed on the debt segment of the
HSE plans and achieve the defined KPIs. For details on HSE, The CSR Policy of the Company is available on the website of your Directors state that:
National Stock Exchange of India Limited (NSE).
please refer to Management Discussion and Analysis Report. the Company and the weblink is: - https://corporate.apollotyres.
(a) in the preparation of the annual accounts for the financial
com/investors/corporate-governance/?filter=CodesPolicies
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS year ended March 31, 2021, the applicable accounting
AWARDS AND RECOGNITIONS
UNDER SECTION 186 standards had been followed along with proper explanation
BUSINESS RESPONSIBILITY REPORT
In its constant quest for growth and excellence, your Company relating to material departures;
During the year under review, your Company has not given
was honoured and recognised at various forums. The prominent SEBI (Listing Obligations and Disclosure Requirements)
any loan or guarantee which is covered under the provisions of (b) the Directors had selected such accounting policies and
Awards are listed below for your reference. Regulations, 2015, as amended from time to time, mandates the
Section 186 of the Companies Act, 2013. However, details of applied them consistently and made judgments and
top 1000 Listed Companies by market capitalisation to include
investments made during the year are given under notes to the Name of the Award Category Awarded by estimates that are reasonable and prudent so as to give a
Business Responsibility Report (“BR Report”) in their Annual
financial statements. ICQCC 2020 Quality Bangladesh Society true and fair view of the state of affairs of the Company at
Report.
for Total Quality the end of the financial year and of the profit and loss of the
RELATED PARTY TRANSACTIONS Management Your Company falls under the top 500 Listed Companies by Company for that period;
Certificate of Recognition for the Ministry of Health market capitalisation. Accordingly, a BR Report describing
All contracts/ arrangements/ transactions entered by the Appreciation efforts and contribution and Family Welfare (c) the Directors had taken proper and sufficient care for the
the initiatives taken by the Company from an environmental,
Company during the financial year with related parties were in towards ending maintenance of adequate accounting records in accordance
Tuberculosis social and governance perspective, forms part of this Report as
the ordinary course of business and on an arm’s length basis and with the provisions of this Act for safeguarding the assets of
Annexure III.
do not attract the provisions of Section 188 of the Companies the Company and for preventing and detecting fraud and
Act, 2013. During the year, the Company had not entered into RISK MANAGEMENT other irregularities;
any contract/ arrangement/ transaction with related parties
The Company has constituted a Risk Management Committee (d) the Directors had prepared the annual accounts on a going
which could be considered material in accordance with the policy
(RMC) of the Board comprising of Directors and Senior concern basis;
of the Company on materiality of related party transactions.

84 Apollo Tyres Ltd Annual Report 2020-21 85

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

ANNEXURE I
(e) the Directors had laid down internal financial controls to be ACKNOWLEDGEMENT FORM NO. MR - 3
followed by the Company and that such internal financial SECRETARIAL AUDIT REPORT
Your Company’s organisational culture upholds professionalism,
controls are adequate and were operating effectively; and FOR THE FINANCIAL YEAR ENDED MARCH 31, 2021
integrity and continuous improvement across all functions, as
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule no.9 of the Companies
(f) the Directors had devised proper systems to ensure well as efficient utilisation of the Company’s resources for
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
compliance with the provisions of all applicable laws and sustainable and profitable growth.
that such systems were adequate and operating effectively.
Your Directors wish to place on record their appreciation to the To, d. The Securities and Exchange Board of India (Share
respective State Governments of Kerala, Gujarat, Haryana, The Members, Based Employees Benefits) Regulations, 2014; (Not
SECRETARIAL STANDARDS
Tamil Nadu and Andhra Pradesh and the National Governments Apollo Tyres Limited applicable to the Company during the audit period)
During the year under review, your Company had complied with of India, Netherlands and Hungary. We also thank our customers, (L25111KL1972PLC002449)
e. The Securities and Exchange Board of India (Issue and
all the applicable Secretarial Standards. business partners, members, bankers and other stakeholders for
We have conducted the secretarial audit of the compliance Listing of Debt Securities) Regulations, 2008; (Not
their continued support during the year. We place on record our
of applicable statutory provisions and the adherence to good applicable to the Company during the audit period)
appreciation for the contribution made by all employees towards
corporate practices by Apollo Tyres Limited (hereinafter called
the growth of your Company. f. The Securities and Exchange Board of India (Registrars
“the Company”). Secretarial Audit was conducted in a manner
and Share Transfer Agents) Regulations, 1993;
For and on behalf of the Board of Directors that provided us a reasonable basis for evaluating the corporate
regarding the Companies Act and dealing with client;
conducts/statutory compliances and expressing our opinion
ONKAR KANWAR (Not applicable to the Company during the audit
thereon.
Place : London Chairman & Managing Director period)
Date : May 12, 2021 DIN: 00058921 Based on our verification of the Company’s books, papers, minute
g. The Securities and Exchange Board of India (Delisting
books, forms and returns filed and other records maintained
of Equity Shares) Regulations, 2009; (Not applicable to
by the Company, the information provided by the Company,
the Company during the audit period)
its officers, agents and authorized representatives during the
conduct of secretarial audit, we hereby report that in our opinion, h. The Securities and Exchange Board of India (Buy - back
the Company has, during the audit period covering the financial of Securities) Regulations, 2018; (Not applicable to the
year ended on March 31, 2021, complied with the statutory Company during the audit period)
provisions listed hereunder and also that the Company has
i. The Securities and Exchange Board of India (Listing
proper Board-processes and compliance-mechanism in place to
Obligations and Disclosure Requirements) Regulations,
the extent and as applicable to the Company, in the manner and
2015.
subject to the reporting made hereinafter:
(vi) We further report that with respect to the compliance of the
Subject to the limitations given in this report, we have examined
below mentioned laws, we have relied on the representations
the books, papers, minute books, forms and returns filed and
made by the Company and its officers for system and
other records maintained by the Company for the financial year
mechanism framed by the Company for compliances
ended on March 31, 2021, according to the provisions of:
under the following Specific laws applicable as mentioned
(i) The Companies Act, 2013 (‘the Act’) and the rules made hereunder:
thereunder;
1. Pneumatic Tyres and Tubes for Automotive Vehicles
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) (Quality Control), Order, 2009;
and the rules made thereunder;
2. Bureau of India Standards Act, 1986 and the Rules made
(iii) The Depositories Act, 1996 and the Regulations and Bye- thereunder as applicable to Tyre Industry; and
laws framed thereunder;
3. Rubber Act, 1947 and Rubber Rules, 1955.
(iv) Foreign Exchange Management Act, 1999 and the rules
We have also examined compliance with the applicable clauses
and regulations made thereunder to the extent of Foreign
of the following:
Direct Investment, Overseas Direct Investment and External
Commercial Borrowings; (i) Secretarial Standards issued by The Institute of Company
Secretaries of India with respect to board and general
(v) The following Regulations and Guidelines prescribed under
meetings.
the Securities and Exchange Board of India Act, 1992 (‘SEBI
Act’): - (ii) The Listing Agreements entered into by the Company with
the BSE Limited and National Stock Exchange of India
a. The Securities and Exchange Board of India (Substantial
Limited read with the Securities and Exchange Board of
Acquisition of Shares and Takeovers) Regulations, 2011;
India (Listing Obligations and Disclosure Requirements)
b. The Securities and Exchange Board of India (Prohibition Regulations, 2015 (hereinafter referred to as (‘Listing
of Insider Trading) Regulations, 2015; Regulations’).

c. The Securities and Exchange Board of India (Issue of Subject to the limitations given in this report, during the period
Capital and Disclosure Requirements) Regulations, under review the Company has complied with the provisions of
2018; the Act, Rules, Regulations, Guidelines, Standards etc.

86 Apollo Tyres Ltd Annual Report 2020-21 87

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

ANNEXURE A
We further report that the Board of Directors of the Company and issue of CCPS (Tranche 2) through Postal Ballot held on To,
is duly constituted with proper balance of Executive Directors, September 24, 2020. The Company had allotted 54,000,000 The Members,
Non-Executive Directors and Independent Directors. The CCPS (Tranche 1) and 54,000,000 CCPS (Tranche 2), for Apollo Tyres Limited
changes in the composition of the Board of Directors that cash, for an aggregate amount of ` 10,800 Million on April
Our Secretarial Audit Report of even date is to be read along with this letter.
took place during the period under review were carried out in 22, 2020 and October 7, 2020 respectively. Pursuant to the
compliance with the provisions of the Act. Agreement, one of the conditions for conversion was met 1. Maintenance of secretarial records is the responsibility of the management of the Company. Our Responsibility is to express an
and accordingly the Company has issued 63,050,966 equity opinion on these secretarial records based on our audit.
Adequate notice was given to all Directors to schedule the Board
shares having a face value of Re 1 per share.
Meetings, agenda and detailed notes on agenda were sent at 2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness
least seven days in advance for meetings other than those held of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
LIMITATIONS
at shorter notice, and a system exists for seeking and obtaining secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
further information and clarifications on the agenda items before It is to be noted that due to Covid-19 situation in the Country and
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
the meeting and for meaningful participation at the meeting. in compliance of the Covid-19 norms issued by the Government
of India and State Governments from time to time, the Firm had 4. Where ever required, we have obtained the Compliance Certificate/Management Representation Letter about the compliance
Majority decision were carried through and there were no carried out the audit virtually and the documents, registers, of laws, rules and regulation and happening of events etc.
instances where any director expressing any dissenting views. forms, etc. were made available to us by the company through
5. The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards are the responsibility of
We further report that there are adequate systems and electronic medium. Further, wherever possible we have also taken
management. Our examination was limited to the verification of procedures on test basis.
processes in the Company commensurate with the size and confirmations from the Company but the audit, as conducted,
operations of the Company to monitor and ensure compliance is subject to limitation of availability of documents due to 6. The Secretarial Audit Report is neither an assurance as to future viability of the Company nor of the efficacy or effectiveness
with applicable laws, rules, regulations and guidelines. continuous restrictions imposed by governments. with which the management has conducted the affairs of the Company.

We further report that during the audit period the following

event(s) occurred during the year which have a major bearing on For PI & Associates For PI & Associates
the Company’s affairs in pursuance of the laws, rules, regulations, Company Secretaries Company Secretaries
guidelines, standards etc. referred to above.

i. On February 26, 2020, the Company executed an agreement Sd/- Sd/-
with Emerald Sage Investment Ltd (an affiliate of Warburg ANKIT SINGHI ANKIT SINGHI
Pincus LLC) to issue 108,000,000 6.34% Compulsorily Partner Partner
Convertible Preference Shares (CCPS) having a face value ACS No.: 20642 ACS No.: 20642
of ` 100 each, at par, for cash, by way of preferential Date : 12/05/2021 C P No.: 16274 Date : 12/05/2021 C P No.: 16274
Place : Noida UDIN: A020642C000282827 Place : Noida UDIN: A020642C000282827
allotment on a private placement basis. The Members of the
Company approved the issue of CCPS (Tranche 1) through
Further, this report is to be read with our letter of even date which is
its Extraordinary General Meeting held on March 23, 2020 annexed as “Annexure A” and forms an integral part of this report.

88 Apollo Tyres Ltd Annual Report 2020-21 89

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

ANNEXURE II
3. Web-link where Composition of CSR committee, CSR Policy off for the financial year, if any:

Annual Report on Corporate Social Responsibilty (CSR)

and CSR projects approved by the Board are disclosed on the
Amount available for Amount required
website of the Company:

Activities
Sl. set-off from preceding to be set-off for the
Financial Year
No. financial years financial year, if any
The Company has framed a CSR Policy in compliance (` Million) (` Million)
with the provisions of the Companies Act, 2013 and the Not Applicable
1. BRIEF OUTLINE ON CSR POLICY OF THE COMPANY Programmes proposed to be undertaken same is placed on the Company’s website and the web
6. Average net profit of the Company as per Section 135(5):
Following are the proposed initiatives which will be undertaken link for the same is : https://staticcdn.apollotyres.com/
Apollo Tyres Ltd being conscious of the triple bottom ₹7,659.49 million
by the Company: CMSOriginal/3987/csr-policy.pdf
line coherence (People, Planet, Profit), has developed a
7. (a) Two percent of average net profit of the Company as per
CSR framework identifying its key stakeholders. The key 1) 
H ealthcare Programme for trucking community at 31 Details of the CSR projects approved by the Board can
Section 135(5): ` 153.19 Million
stakeholders are - Customer, Employees, Supply Chain transhipment locations (ongoing. Incorporate more health be access on the Company website : https://corporate.
Partners and Community. Environment is also considered a services at the locations and explore partnership for greater apollotyres.com/en-in/responsibility/overview/ (b) Surplus arising out of the CSR projects or programmes
crucial stakeholder, hence Biodiversity features as a global outreach). or activities of the previous financial years: Nil
https://corporate.apollotyres.com/en-in/responsibility/
initiative with projects ranging in India and Hungary.
2) 
S olid Waste Management and Sanitation Programme local-initiatives/ (c) Amount required to be set off for the financial year, if
The CSR framework clearly revolves around the principle (SPARSH) in different transhipment hubs and communities any: Nil
4. The details of Impact assessment of CSR projects carried
of three I’s i.e. to involve, Influence and Impact. The CSR around manufacturing locations (ongoing). Introduction of
out in pursuance of sub-rule (3) of rule 8 of the Companies (d) Total CSR obligation for the financial year (7a+7b-7c):
initiatives are delivered through Apollo Tyres Foundation up-cycle products from waste. End of Life Tyre Playgrounds
(Corporate Social Responsibility Policy) Rules, 2014, if ` 153.19 Million
(ATF). ATF has a strong focus on impact, as it delineates the at selected locations and toilet construction initiative to
applicable (attach the report): (NA, in the reporting year
overall influence of its programme. promote safe sanitation at Chennai location. 8. (a) CSR amount spent or unspent for the financial year:
no impact assessment was conducted)
 he programmes are categorised into two broad themes:
T 3) 
Livelihood for underprivileged women: Income generation Total Amount Unspent (in `)
5. Details of the amount available for set off in pursuance of
Environment and Social (which has health and community trainings, linking more number of beneficiaries with financial Amount Total Amount transferred to Amount transferred to any fund
sub-rule (3) of rule 7 of the Companies (Corporate Social Spent Unspent CSR account as per specified under Schedule VII as per
development). Within the themes there are 4 core areas of work: institution and local market for business development and for the Section 135(6) second proviso to Section 135(5)
Responsibility Policy) Rules, 2014 and amount required for set
involving more number of women in livelihood activities. Financial Name
1. Healthcare Programme for Trucking Community Year Amount Date of
of the Amount
Date of
Expansion at Baroda, Kottayam, Chennai and AP location (` Million) (` Million) Transfer transfer
Fund
2. Solid Waste Management and Sanitation (ongoing).
129.91 23.28 28.04.2021 - - -
3. Livelihood for Underprivileged Women 4) B
 iodiversity Conservation: Mangrove conservation project
at Kannur, Kerala. Conservation and maintenance of 8. (b) Details of CSR amount spent against ongoing projects for the financial year:
4. Biodiversity Conservation
biodiversity parks in Kochi, Tree plantation with objective
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
In addition to above there are few local initiatives around of carbon sequestration at Tamil Nadu (ongoing), biogas
Sl. Name of the Item from Local Location of the Project Amount Amount Amount Mode of Mode of implementation
manufacturing locations such as Watershed Management, project at Baroda location (ongoing). No. Project the list of Area project Duration allocated spent transferred implemen- – Through Implementing
activities in (yes/ for the in the to unspent tation Agency
Renewable Energy Proliferation projects and Computer
5) 
Local Initiatives: Computer literacy projects in the villages Schedule VII No) project current CSR account – Direct
Literacy. to the Act (` Million) financial for the (Yes/No)
around Chennai plant. Watershed management project such year project as
In continuation to our efforts to serve our stakeholders, the as pond conservation and drinking water project around (` Million) per Section
135(6)
organisation rolled out various initiatives to combat COVID manufacturing units. (` Million)
given the world is grappling with the pandemic. CSR
6) P
 hilanthropic Initiatives: Sponsorship of education of State District Name Registration
The relief work span from distribution of ration, food packets underprivileged girls in Dehradun, Uttarakhand (Himjyoti Number
1 Healthcare Promoting No Delhi North 2 Years 25.77 13.04 12.73 No Apollo
to local communities to distribution of face masks and PPE School), medicine support to underprivileged (Delhi
programme Preventive West Delhi Tyres
Kits. COVID awareness campaigns were organised across Commonwealth Women’s Association), education support
for trucking Health Foundation
project locations making people aware about COVID to visually impaired people (Lifeline Care Foundation), community
safety guidelines through various awareness mediums like livelihood support underprivileged children (Delhi Sikh 2 TB Promoting No Delhi North 2 Years 2.14 0.44 1.70 No Apollo
hoardings, pamphlets distribution, public announcement Gurudwara Management Committee) and to others during awareness & Preventive West Delhi Tyres
etc. The organisation developed in house digital training the year. prevention Health Foundation
material to sensitise the community. programme
for trucking
2. COMPOSITION OF CSR COMMITTEE:
 o provide continued healthcare consultation services to the
T community
trucking community, the organisation introduced Tele Medicine Number of Number of 3 Healthcare Promoting No Uttar Kanpur 2 Years 5.21 2.63 2.58 No Jan Kalyan
Designation/ meetings of meetings of programme Preventive Pradesh Maha
Consultation facility across its 31 Healthcare Centres. The Sl.
Name of Director Nature of CSR Committee CSR Committee
No. for trucking Health Samiti
facility has an online consultation service with the doctor for Directorship held during the attended
year during the year community
the beneficiaries who visit Apollo healthcare centres.
1 Mr. Onkar Chairman 2 2 4 Skill building Livelihood Yes Gujarat Waghodia, 2 Years 10.03 3.76 6.27 No Apollo
CSR policy of Apollo covered all the activities which are Kanwar & income Enhancement Vadodara Tyres
mentioned in Schedule VII of Companies Act, 2013 but does 2 Mr. Sunam Member 2 2 generation Projects Foundation
Sarkar of the project for
not include the following:
Committee women
1. Activities undertaken in pursuance of normal course of 3 Gen. Bikram Member 2 2 Total 43.15 19.87 23.28
business of the Company Singh (Retd.) of the
Committee
2. Activities that benefit only the employees of the 4 Ms. Anjali Member 2 2
Company and their families Bansal of the
Committee
3. Contribution to any political party

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(1) (2) (3) (4) (5) (6) (7) (8)

8. (c) Details of CSR amount spent against other than ongoing projects for the financial year:
Sl. Name of the Project Item from the list of Local Location of the project Amount Mode of Mode of implementation –
No. activities in Schedule Area spent for implementation Through Implementing agency
(1) (2) (3) (4) (5) (6) (7) (8)
VII to the Act (yes/ the project – Direct (Yes/
Sl. Name of the Project Item from the list of Local Location of the project Amount Mode of Mode of implementation – No) (` Million) No)
No. activities in Schedule Area spent for implementation Through Implementing agency
CSR
VII to the Act (yes/ the project – Direct (Yes/
State District Name Registration
No) (` Million) No)
Number
CSR
State District Name Registration 20 Improved Farming Livelihood No Tamil Nadu Sriperumbudur, 0.85 No National Agro
Number Practices for Enhancement Kanchipuram, Foundation
1 Clean My Transport Ensuring No Uttar Agra 0.51 No Adarsh Seva community Projects Chennai
Nagar Environmental Pradesh Samiti 21 Improved Farming Livelihood No Tamil Nadu Sriperumbudur, 1.10 No National Agro
Sustainability Practices for Enhancement Kanchipuram, Foundation
2 Clean My Transport Ensuring No Delhi North West 2.85 No Apollo Tyres community Projects Chennai
Nagar Environmental Delhi Foundation 22 Skill building & Livelihood No Tamil Nadu Sriperumbudur, 0.02 No Apollo Tyres
Sustainability income generation Enhancement Kanchipuram, Foundation
3 Clean My Transport Ensuring No Uttar Kanpur 1.19 No Adarsh Seva project for women Projects Chennai
Nagar Environmental Pradesh Samiti 23 Skill building & Livelihood No Kerala Kottayam 2.92 No Jawaharlal
Sustainability income generation Enhancement Memorial
4 Clean My Village Ensuring No Gujarat Waghodia, 4.35 No Apollo Tyres project for women Projects Social Welfare
Environmental Vadodara Foundation and Public
Sustainability Co-Operation
5 Clean My Village Ensuring No Tamil Nadu Sriperumbudur, 1.97 No Help Centre
Environmental Kanchipuram, Foundation 24 Drinking Water Making Available No Andhra Chinnapanduru 0.31 No Apollo Tyres
Sustainability Chennai India Project Safe Drinking Water Pradesh Gram Foundation
6 Clean My Village Ensuring No Tamil Nadu Sriperumbudur, 3.83 No World Heritage Panchayath
Environmental Kanchipuram, Trust 25 Education support Promoting Education No Uttarakhand Dehradun 0.75 No Taru
Sustainability Chennai for 50 under Foundation
7 Clean My Village Ensuring No Kerala Kodakara, 5.35 No Plan at Earth privileged girl child
Environmental Thrissur 26 Education support Promoting Education No Haryana Gurgaon 0.20 No Taru
Sustainability for the Visually Foundation
8 Park development Ensuring No Tamil Nadu Sriperumbudur, 0.72 No Apollo Tyres Impaired people
and maintenance Environmental Kanchipuram, Foundation 27 Income generation Livelihood No Delhi Delhi 0.20 No Apollo Tyres
Sustainability Chennai training to under Enhancement Foundation
9 Mangrove Project Ensuring No Kerala Kannur 0.91 No Wild Life Trust privileged children Projects
Environmental of India 28 Computer literacy Promoting Education No Tamil Nadu Sriperumbudur, 0.40 No Bhumi
Sustainability to Govt. School Kanchipuram,
10 Mangrove Project Ensuring No Kerala Kannur 0.55 No Apollo Tyres children Chennai
Environmental Foundation 29 Healthcare Promoting Preventive No Tripura Agartala, West 1.98 No Global
Sustainability programme for Health Tripura Organisation
11 Park development Ensuring No Kerala Chalakudy, 0.21 No Apollo Tyres trucking community for Life
and maintenance Environmental Thrissur Foundation Development
Sustainability 30 Healthcare Promoting Preventive No Uttar Agra 2.81 No Jan Chetna
12 Development and Ensuring No Tamil Nadu Sriperumbudur, 0.39 No Apollo Tyres programme for Health Pradesh Sewa Samiti
maintenance of End Environmental Kanchipuram, Foundation trucking community
of Life Tyres (ELT) Sustainability Chennai 31 Healthcare Promoting Preventive No Karnataka Bangalore 2.95 No Society for
play structure in programme for Health Urban District Peoples
Govt. schools trucking community Action for
13 Pond Restoration Ensuring No Gujarat Waghodia, 0.26 No Apollo Tyres Development
and Maintenance Environmental Vadodara Foundation 32 Healthcare Promoting Preventive No Tamil Nadu Chennai 2.12 No Confederation
Project Sustainability programme for Health of Surface
14 Pond Restoration Ensuring No Kerala Kodakara, 0.40 No Apollo Tyres trucking community Transport Tamil
and Maintenance Environmental Thrissur Foundation Nadu
Project Sustainability 33 Healthcare Promoting Preventive No Madhya Chhindwara 2.02 No Young Men's
15 Tree Plantation Ensuring No Tamil Nadu Sriperumbudur, 3.23 No Apollo Tyres programme for Health Pradesh Christian
Project Environmental Kanchipuram, Foundation trucking community Association
(Afforestation) Sustainability Chennai 34 Healthcare Promoting Preventive No Orrisa Cuttack 1.84 No Utkal Sevak
16 COVID-19 Relief Eradication No Gujarat Waghodia, 0.07 No Apollo Tyres programme for Health Samaj
Work Hunger, Poverty & Vadodara Foundation trucking community
Malnutrition 35 Healthcare Promoting Preventive No Delhi North West 2.68 No Nav Srishti
17 COVID-19 Relief Eradication No Tamil Nadu Sriperumbudur, 0.34 No Apollo Tyres programme for Health Delhi
Work Hunger, Poverty & Chennai Foundation trucking community
Malnutrition 36 Healthcare Promoting Preventive No West Bengal Farakka, 1.06 No Ambuja
18 COVID-19 Relief Eradication No Kerala Kodakara, 1.27 No Apollo Tyres programme for Health Murshidabad Cement
Work Hunger, Poverty & Thrissur Foundation trucking community Foundation
Malnutrition 37 Healthcare Promoting Preventive No Assam Guwahati, 2.20 No Global
19 Improved Farming Livelihood No Gujarat Waghodia, 3.34 No Apollo Tyres programme for Health Kamrup Organisation
Practices for Enhancement Vadodara Foundation trucking community Metropolitan for Life
community Projects district Development

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(1) (2) (3) (4) (5) (6) (7) (8) (1) (2) (3) (4) (5) (6) (7) (8)
Sl. Name of the Project Item from the list of Local Location of the project Amount Mode of Mode of implementation – Sl. Name of the Project Item from the list of Local Location of the project Amount Mode of Mode of implementation –
No. activities in Schedule Area spent for implementation Through Implementing agency No. activities in Schedule Area spent for implementation Through Implementing agency
VII to the Act (yes/ the project – Direct (Yes/ VII to the Act (yes/ the project – Direct (Yes/
No) (` Million) No) No) (` Million) No)
CSR CSR
State District Name Registration State District Name Registration
Number Number
38 Healthcare Promoting Preventive No Haryana Gurgaon 2.65 No Child Survival 58 Support provided Promoting Preventive No Andhra Chinnapanduru, 0.53 No Apollo Tyres
programme for Health India to Public Health Health Pradesh Chittoor District Foundation
trucking community Centre
39 Healthcare Promoting Preventive No Madhya Gwalior 2.27 No Jan Chetna 59 TB prevention and Promoting Preventive No Gujarat Waghodia, 0.03 No Apollo Tyres
programme for Health Pradesh Sewa Samiti awareness for Health Vadodara Foundation
trucking community community
40 Healthcare Promoting Preventive No Telangana Hyderabad 3.11 No Telugu Network 60 TB treatment Promoting Preventive No Delhi Delhi 0.20 No Taru
programme for Health of People Living support to under Health Foundation
trucking community With HIV/AIDS privileged rural
41 Healthcare Promoting Preventive No Madhya Indore 2.37 No Adarsh Jan community
programme for Health Pradesh Seva Sansthan 61 Sanitation project- Promoting Preventive No Tamil Nadu Sriperumbudur, 2.11 No Help
trucking community Toilet construction Health Kanchipuram, Foundation
42 Healthcare Promoting Preventive No Rajasthan Jaipur 2.23 No Institute & Geo Tagging Chennai India
programme for Health for Global Total 103.85
trucking community Development
43 Healthcare Promoting Preventive No Punjab Jalandhar 2.28 No Pahal 8. (d) Amount spent in Administrative Overheads: ` 6.19 Million
programme for Health 8. (e) Amount spent on Impact Assessment, if applicable: Not Applicable
trucking community
8. (f) Total Amount spent for the financial year (8b+8c+8d+8e): ` 129.91 Million
44 Healthcare Promoting Preventive No Rajasthan Jodhpur 2.21 No Institute
8. (g) Excess amount for set off, if any:
programme for Health for Global
trucking community Development Sl. No. Particular Amount (` Million)
45 Healthcare Promoting Preventive No Telangana KarimNagar 1.71 No Telugu Network
(i) Two percent of average net profit of the Company as per section 135(5) Nil
programme for Health of People Living
(ii) Total amount spent for the Financial Year
trucking community With HIV/AIDS
(iii) Excess amount spent for the financial year [(ii)-(i)]
46 Healthcare Promoting Preventive No West Bengal Howrah 1.34 No Ambuja
programme for Health Cement (iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any
trucking community Foundation (v) Amount available for set off in succeeding financial years [(iii)-(iv)]
47 Healthcare Promoting Preventive No Maharashtra Navi Mumbai 2.41 No Alert India
programme for Health
9. (a) Details of unspent CSR amount for the preceding three financial years:
trucking community Sl. Preceding Amount transferred to Unspent Amount spent in the Amount transferred to any fund specified under Amount remaining to
48 Healthcare Promoting Preventive No Gujarat Mundra Port, 2.50 No Shree Sevanidhi No. Financial Year CSR Account under Section 135 reporting financial year Schedule VII as per Section 135(6), if any be spent in succeeding
programme for Health Kutch Trust (6) (` Million) (` Million) Name of the fund Amount Date of financial years
(` Million) transfer (` Million)
trucking community
49 Healthcare Promoting Preventive No Maharashtra Nagpur 2.10 No Young Men's NIL
programme for Health Christian
9. (b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
trucking community Association
50 Healthcare Promoting Preventive No Himachal Nalagarh, Solan 1.24 No Ambuja Sl. Project ID Name of the Financial Year Project Total amount Amount spent on Cumulative amount Status of the project –
programme for Health Pradesh Cement No. Project in which the duration allocated for the project in the spent at the end of Completed/ Ongoing
project was the project reporting financial reporting financial year
trucking community Foundation commenced (` Million) year (` Million) (` Million)
51 Healthcare Promoting Preventive No Tamil Nadu Namakkal 1.90 No Confederation
NIL
programme for Health of Surface
trucking community Transport Tamil 10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR
Nadu
spent in the financial year (asset-wise details):
52 Healthcare Promoting Preventive No Bihar Patna 2.60 No Step
(a) Date of creation or acquisition of the capital asset(s): 14.09.2020
programme for Health Foundation
trucking community
(b) Amount of CSR spent for creation or acquisition of capital asset: ` 30,680.00
53 Healthcare Promoting Preventive No Maharashtra Pune 2.16 No Magmo (c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc.
programme for Health Welfare
Entity/ Public Authority/ Beneficiary Name Address
trucking community Sanstha
Apollo Tyres Foundation BG-218, Sanjay Gandhi Transport Nagar, Delhi-110042
54 Healthcare Promoting Preventive No Chhattisgarh Raipur 1.80 No Kalyani Social
programme for Health Welfare & (d) Provide details of capital asset(s) created or acquired (including complete address and location of the capital asset)
trucking community Research
Organization Details of Capital Assets Address and location of the capital asset
55 Healthcare Promoting Preventive No Gujarat Surat 0.98 No Ambuja Binocular Microscope BG-218, Sanjay Gandhi Transport Nagar, Delhi-110042
programme for Health Cement
trucking community Foundation 11. Specify the reason(s), if the Company has failed to spend 2% of the average net profit as per Section 135(5):
56 Healthcare Promoting Preventive No Uttar Varanasi 2.14 No Jan Kalyan
During the COVID 19 pandemic in FY21, activities could not be carried out during the first quarter. This resulted in an unspent
programme for Health Pradesh Maha Samiti
trucking community
that has been carried forward to the next year and allocated to ongoing projects.
57 Healthcare Promoting Preventive No Andhra Vijayawada, 2.83 No Vasavya Mahila
programme for Health Pradesh Krishna District Mandali
ONKAR KANWAR NEERAJ KANWAR
trucking community Place: London Chairman of CSR Committee Vice Chairman & Managing Director
Date : May 12, 2021 DIN: 00058921 DIN: 00058951

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Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

ANNEXURE III
LIST OF PRINCIPLES

Business Responsibility Report (BRR)

Business Responsibility Report of the Company for the financial year ended on March 31, 2021, pursuant to Regulation 34 (2)(f) of PRINCIPLE PRINCIPLE PRINCIPLE
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is as follows:- 01 02 03

Businesses should conduct Businesses should provide Businesses should promote

SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
and govern themselves goods and services that the wellbeing of all employees.
with Ethics, Transparency are safe and contribute to
1 Corporate Identity Number (CIN) of the Company L25111KL1972PLC002449
2 Name of the Company APOLLO TYRES LTD
and Accountability. sustainability throughout
3 Registered address 3rd Floor, Areekal Mansion, Near Manorama Junction, Panampilly their life cycle.
Nagar, Kochi- 682036 (Kerala)
4 Website apollotyres.com
5 E-mail id investors@apollotyres.com
6 Financial Year reported 2020-21
7 Sector(s) that the Company is engaged in (industrial activity Tyres manufacturing
code-wise) 04 PRINCIPLE 05 PRINCIPLE
06 PRINCIPLE
8 List three key products/services that the Company Tyres, Tubes and Flaps
manufactures/provides (as in balance sheet)
9 Total number of locations where business activity is undertaken 146 locations Businesses should respect the Businesses should respect and Business should respect,
by the Company interests of, and be responsive promote human rights. protect, and make efforts to
A Number of International Locations (Provide details of major 5) Apollo has business activity undertaken in about 110 international towards all stakeholders, restore the environment.
locations. The major ones are Netherlands, Hungary, Middle especially those who are
East, Thailand, Singapore and North America. The Company has disadvantaged, vulnerable and
manufacturing units in Netherlands and Hungary.
marginalized.
B Number of National Locations Apollo has business activity carried out in about 36 domestic
locations. The manufacturing units are located at Gujarat (Limda),
Kerala (Perambra and Kalamassery), Tamil Nadu (SIPCOT Industrial
Growth Centre Oragadam, Chennai) and Chinnapandur (Andhra
PRINCIPLE
08 PRINCIPLE PRINCIPLE
Pradesh).
10 Markets served by the Company – Local/State/National/ National and International 07 09
International
3. Do any other entity/entities (e.g. suppliers, distributors Businesses, when engaged Businesses should support Businesses should engage
SECTION B: FINANCIAL DETAILS OF THE COMPANY etc.) that the Company does business with, participate in influencing public and inclusive growth and with and provide value
in the BR initiatives of the Company? If yes, then indicate regulatory policy, should do equitable development. to their customers and
1. Paid up Capital (INR) ₹ 635.10 million
the percentage of such entity/entities? [Less than 30%, so in a responsible manner. consumers in a responsible
2. Total Turnover (INR) ₹ 113,545 million 30-60%, More than 60%] :- manner.
At present, the BR initiatives have been undertaken at
3. Total profit after taxes (INR) ₹ 7,228 million
Company level.
4. Total Spending on Corporate Social Responsibility (CSR)
as percentage of profit after tax (%) ₹ 129.91 million
SECTION D: BR INFORMATION
5. List of activities in which expenditure in 4 above has
1. Details of Director/Directors responsible for BR
been incurred:-
a. Details of the Director/Director responsible for
During the year under review, the Company has carried implementation of the BR policy/policies
out activities primarily related to promoting preventive i. DIN Number :- 00058859
healthcare, ensuring environmental sustainability, ii. Name :- Mr. Sunam Sarkar
livelihood enhancement projects, rural development iii. Designation :- Director
projects, promoting education and eradication of
hunger, poverty & malnutrition. 2. Details of the BR head
Sl.
Particulars Details
No.
SECTION C: OTHER DETAILS 1 DIN Number (if applicable) NA
2 Name Ms. Seema Thapar
1. Does the Company have any Subsidiary Company/
3 Designation Company Secretary
Companies?
4 Telephone number 0124-2721000
Yes
5 E-mail ID investors@apollotyres.com

2. Do the Subsidiary Company/Companies participate in

the BR Initiatives of the parent Company? If yes, then
indicate the number of such Subsidiary Company(s):
At present, the BR initiatives have been undertaken at
parent Company level.

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2. Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N) The Company has rolled out Code of Conduct mandatory 2. For each such product, provide the following details in
online training for all the employees. The Code of Conduct respect of resource use (energy, water, raw material
P1 P2 P3 P4 P5 P6 P7 P8 P9
explicitly guides our people on ethical dealings with external etc.) per unit of product(optional):
1. Do you have a policy /policies for.... Y Y Y Y Y Y Y Y Y
stakeholders. a) Reduction during sourcing/production/distribution
2. Has the policy being formulated in consultation with the Y Y Y Y Y Y Y Y Y
relevant stakeholders? achieved since the previous year throughout the value
3. Does the policy conform to any national /international Y Y Y Y Y Y Y Y Y 2. How many stakeholder complaints have been received chain?
standards? If yes, specify? (50 words)(1) in the past financial year and what percentage was Comparative Details for FY21 against reference of
4. Has the policy being approved by the Board? If yes, has it been Y Y Y Y Y Y Y Y Y satisfactorily resolved by the management? If so, FY20 on
signed by MD/owner/CEO/appropriate Board Director?(2) provide details thereof, in about 50 words or so.
(i) Water consumed per kg of product [Litre/Kg]: PCR
5. Does the Company have a specified Committee of the Board/ Y Y Y Y Y Y Y Y Y During the year under review, there were no cases on the
Director/Official to oversee the implementation of the policy?(3) --11.46 & TBR 10.53% reduction
violation of the Company’s Code of Conduct. During the past
6. Indicate the link for the policy to be viewed online?(4) Y Y Y Y Y Y Y Y Y financial year, 11 Shareholders Complaints were received (ii) Progressive reduction of tyre weight in PCR by
7. Has the policy been formally communicated to all relevant Y Y Y Y Y Y Y Y Y and 1 complaint was pending as on March 31, 2021. No 5%: which directly corresponds to reduction in the
internal and external stakeholders?
Complaints are pending as on the date of this report. All the consumption of Hydrocarbon and thereby resulting
8. Does the Company have in-house structure to implement the Y Y Y Y Y Y Y Y Y
Complaints were attended and resolved to the satisfaction in the reduced carbon footprint per tyre.
policy/policies?
of the shareholders.
9. Does the Company have a grievance redressal mechanism Y Y Y Y Y Y Y Y Y (iii) S ilica based tyre production for PCR category
related to the policy/policies to address stakeholders’ increased by 50% in last year, which thus reduced
grievances related to the policy/policies? 02 PRINCIPLE
the consumption of carbon black, a fossil fuel based
10. Has the Company carried out independent audit/evaluation of Y Y Y Y Y Y Y Y Y
1. List up to 3 of your products or services whose design reinforcing agent.
the working of this policy by an internal or external agency
has incorporated social or environmental concerns, risks
(1)
The policies are in compliance with applicable national/international laws, rules, regulations, guidelines and standards. The policies are in conformance (iv) Recycled material usage expanded to many
to the spirit of international standards like ISO 9001, ISO 14001 and ISO 45001. and/or opportunities.
components beyond Inner liner to reduce virgin
At Apollo Tyres, we follow state of the art and efficient design
(2)
As per Company practice the policies that are approved by the Board are posted on the website of the Company www.apollotyres.com. material consumption by 10%.
& manufacturing practices. Our Passenger Car Radial Tyres
(3)
The Business Responsibility(BR) Committee shall oversee the implementation of the Policies.
and Truck / Bus Radial Tyres are designed to meet all the (v) A new process– “Gas Circulation Unit” employed
(4)
https://corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=CodesPolicies
international norms and are duly certified accordingly. These for ensuring uniform cure across the tyre resulting
tyres comply with all the relevant International Regulations in consistent durability and energy saving.
2a. If the answer to S. No.1 against any principle, is ‘No’, please explain why: (Tick upto 2 options)-Not Applicable
such as, Conflict Minerals rule, REACh, PAH, ROHS California
P1 P2 P3 P4 P5 P6 P7 P8 P9 (vi) Apollo Mixing Technology (AMT) concept was
Prop65 etc. and also aligned to the requirements of ELV
1. The Company has not understood the Principles developed for increased efficiency in manufacturing
norms. In FY21, Apollo improved fuel efficiency of all TBR and
2. The Company is not at a stage where it finds itself in a position by 15%, Extrusion Efficiency was also improved by
to formulate and implement the policies on specified principles PCR tyres and enhanced its’ presence on New BSVI vehicles
20%, thereby resulting in substantial savings in
3. The Company does not have financial or manpower resources and Electric vehicles. Range expansion of energy efficient
energy.
available for the task tyre, new fuel efficiency series tyre called nRG continued in
4. It is planned to be done within next 6 months TBR with tubeless tyre sizes. New range of PCR / SUV tyres (vii) Nitrogen curing technology has been implemented
5. It is planned to be done within the next 1 year in Amazer XP & Apterra Cross launched to deliver significant in the new plant to reduce water consumption.
6. Any other reason (please specify) saving potential in the fuel bill for the customers. Amazer 4G
Life continued to deliver High life to reduce tyre consumption b) Reduction during usage by consumers (energy, water)
3. Governance related to BR and support sustainability. The indigenously developed has been achieved since the previous year?
products (under Atmanirbhar Bharat), EnduTerraMaxx-A for The rolling resistance of the PCR tyres is reduced through
(a) Indicate the frequency with which the Board of SECTION E: PRINCIPLE-WISE PERFORMANCE supplies to Defence dept has enabled Govt of India to reduce the year from 8.0 Kg/T to 7.0Kg/T. This translates into
Directors, Committee of the Board or CEO to assess
import costs of such tyres. Another development targeting reduction of rolling loss and reduced fuel consumption
the BR performance of the Company. Within 3 months,
01 PRINCIPLE fuel efficiency, the Durable Ultra Low Rolling resistance without compromising any other performance.
3-6 months, Annually, More than 1 year.
(DULRR) tyre with improved Product durability has been
The Business Responsibility (BR) Committee reviews 1. Does the policy relating to ethics, bribery and corruption Usage of efficient techniques for Retreading of Truck
the first of its kind product development in India. Ultra low
the business performance annually and as and when cover only the Company? Yes/ No. Does it extend to the tyres to provide Extended life cycle of the tyre body
noise (ULN) tyre was developed with an innovative pattern
required. Group/Joint Ventures/ Suppliers/ Contractors/ NGOs/ material to 2-3 times, thus avoiding the need for frequent
to reduce interior noise to meet stringent OE requirements.
Others? replacement. Retreading is also a green process as it
Several developments were aimed to support farming
(b) Does the Company publish a BR or a Sustainability The Company has designed a global “Code of Conduct Policy” extends the usage life of the tyre significantly.
community such as introduction of Farm Plus Haulage tyre
Report? What is the hyperlink for viewing this report? (“Code”) to conduct its business with honesty and integrity
(patented) having dual function as a Farming tyre and as Improvement of wear life for all tyres ensures improved
How frequently it is published? and in compliance with all applicable legal and regulatory
well as a Haulage tyre for transporting farm produce to the re-use of the non consumable part of tyres to a longer
Yes, the Company publishes Annual Sustainability requirements. This Code sets out the fundamental standards
market. Introduction of Agri tyre with Steel breaker also period.
Report as a part of the Annual Report. From FY17, to be followed by all employees of the Company including
helped the farmers to get rid of frequent puncture due to
the BR Report was also part of the Annual Report. Associates, Subsidiaries and Joint Ventures. Product failure rate is reduced by almost 14%, thus
stub penetrations to a considerable extend.
Both BR and Sustainability Report are published on enhancing the application life of tyres and improve full
The Code is also to act as a deterrent from unethical doings
the website https://corporate.apollotyres.com/en-in/ Weight reduction journey of Apollo continues to reduce utilization of tyres till end of life.
and to promote ethical values and is the manifestation of
responsibility/policies-documents. per tyre Raw Material consumption and also the energy
the Company’s commitment to successful operation of the Apart from nRG series fuel efficient series in TBR, we are
consumption for processing to produce the tyre. Increased
Company’s business in the best interest of the shareholders, reducing the RRc of all major SKUs by around 4%, which
Recycled material usage effectively supported the
creditors, employees, other business associates and can reduce the fuel consumption of vehicles especially
sustainability drive practised by the Company. Further to this,
stakeholders. for the fastest growing compact SUV segment .
our Company ensured consistent supply of tyres in the market
to fill the vacuum created due to import restriction of tyres
and thereby saving huge foreign exchange for the country.

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All steel radial tyres (14.00R20 & 16.00R20) exclusively standards as well as others as per Apollo’s Sustainability proximity to Apollo’s plants, lower transit lead times, 7. Please indicate the Number of complaints relating to
used for Defence have been developed indigenously and standards and Apollo’s Partnership Pact. The supplier need to maintain lower inventory and lower carbon child labour, forced labour, involuntary labour, sexual
thereby reducing logistics cost and foreign exchange. audit is conducted by Apollo’s certified professionals as footprint. harassment in the last financial year and pending, as on
per the Company’s audit criteria and plan. the end of the financial year.
The Company has initiated and established natural
3. Does the Company have procedures in place for No complaints relating to child labour, forced labour,
The Company encourages its suppliers to implement rubber collection centres near its plants and provides
sustainable sourcing (including transportation)? involuntary labour, sexual harassment has been received
Apollo’s Partnership Pact not only in their business but employment opportunities to the nearby communities.
a) If yes, what percentage of your inputs was sourced during the last financial year ending on March 31, 2021.
also to promote this initiative to the next tier suppliers The Company has also been providing training to the
sustainably? Also, provide details thereof, in about 50
within their respective supply chains. In this regard, the employees in aforesaid centres to enhance their skills
words or so. 8. What percentage of your under mentioned employees
supplier partners are expected to gather information and capability. These centres have employed women
Apollo Tyres’ Sustainable Procurement Vision is to were given safety & skill upgradation training in the last
from the upstream supply chain regarding the source and trained them in NR grading and provided them
work towards minimizing the environmental and year?
of raw material that are used in their manufacturing livelihood. In this way, the domestic NR is made suitable
social impacts to its business by adopting sustainable
process to ensure the full traceability of the source of for critical applications and helps the Company in Permanent employees 88%
procurement policies and in this regard ensure the
product as a part of Apollo Raw Material Supply Chain import substitution. Permanent women employees Not Captured
partners’ participation in promoting sustainable
Risk mapping. Casual/Temporary/Contractual 100%
practices in the raw material supply chain. The Company has initiated partnership program Employees
Apollo Tyres mandates from its partners to develop with select suppliers for training and development Employees with Disabilities Not Captured
In this regard, the organisation further strives to
their environmental systems in compliance with the activities towards promotion of safe work culture and
continuously enhance customer satisfaction by
requirements of ISO14001 and to get their systems practices at the supplier plant premises. The Company
providing cost effective and quality materials on a 04 PRINCIPLE
certified by an accredited third party. The organisation aims to develop & upgrade its raw material suppliers
timely basis, while working together with supply chain
works together with the partners to promote the by educating and encouraging them on measures,
partners on environmental, economic and social aspects 1. Has the Company mapped its internal and external
use of sustainable practices at its supplier partners’ to reduce and ultimately eliminate incidents at its
to enable sustainable business practices. stakeholders? Yes/No
manufacturing plants, offices and urges them to be workplace which may lead to human injury and illness.
Yes. The organisation has mapped its key stakeholders
In-line with its efforts towards sustainability, the eco-conscious. Partners must comply with all applicable The supplier assessment for safety culture at workplace
across its value chain. These are stated below -
organisation is also working with the Global Platform environmental laws, regulations and standards, includes on-site assessment of the selected suppliers in
for Sustainable Natural Rubber [GPSNR] promoted by such as requirements regarding chemical and waste a region for safety culture at workplace. a. Employees
the World Business Council on Sustainable Development management and disposal, recycling, industrial
b. Customers (OEM & Replacement)
[WBCSD] to contribute to the improvement of Socio- wastewater treatment and discharge, air emissions 5. Does the Company have a mechanism to recycle
Economic factors in Natural Rubber supply chain. controls, environmental permits and environmental products and waste? If yes what is the percentage of c. Dealers & suppliers
reporting. Currently, most of its suppliers are ISO 14001 recycling of products and waste (separately as <5%,
The Company believes that supply chain is a key d. Investors & analysts
certified, complying with local government laws and 5-10%, > 10%). Also, provide details thereof, in about 50
contributor to the development and implementation
regulations. words or so. e. Shareholders
of its Corporate Social Responsibility Programme.
Yes, Apollo encourages its Raw Material vendors towards
As a leading responsible corporate, the Company The Company is continuously working on optimizing f. Regulatory bodies and
reduce, reuse and recycle concepts in their operations
expects its Business Partners to consider social and transportation, logistics and packaging in order to
and expects that its vendors to run their manufacturing g. Community
environmental impacts of their actions as they conduct reduce carbon footprint and other environmental
operations in a manner that is protective of the environment.
their businesses. The focus in the upstream supply chain impacts. The Company also emphasises on usage of Continuous engagement with the stakeholder groups is
extends to sourcing of raw materials, their processing, environment friendly, re-usable, recyclable packing In this regard, recycled material usage stands at 1~2 % crucial to the organisation’s growth and sustainability.
and their use in the manufacture of intermediate and material like returnable pallets, returnable metal to replace virgin rubber in various applications of tyre
final products. boxes, returnable metallic spools for the supply of raw manufacturing. 2. Out of the above, has the Company identified the
material to its manufacturing plant locations globally. disadvantaged, vulnerable & marginalized stakeholders.
In order to drive the implementation of the Sustainable
The packaging of raw material should be “wood-free”. It 03 PRINCIPLE Out of the stakeholder groups, women and children forming
Supply Chain Policy in its upstream supply chain,
also ensures that the raw material sourced is free from a part of the community stakeholder group have been
Apollo’s Partnership Pact (APP) has been rolled-
chemicals impacting environment and complying with 1. Please Indicate Total number of employees- 15,821 identified as disadvantaged, vulnerable & marginalised.
out to its business partners in the upstream supply
international norms. Another group identified under this classification are the
chain. Business Partners are expected to ensure their 2. Please indicate the Total number of employees hired on
truck drivers – which comprise of a significant part amongst
operations and the products supplied to Apollo Tyres Along with the guidelines to safeguard the environment, temporary / contractual / casual basis- 8,394
the customers. Because of their nomadic lifestyle, they
comply with all national and other applicable laws and the Company has set-up natural rubber processing units
3. Please indicate the Number of permanent women experience vulnerability and fall under this category.
regulations. to support the community nearby and empower women.
employees- 54
Furthermore, health check-up facilities were provided
The Raw Material supplier partners are expected 3. Are there any special initiatives taken by the Company
by the Company to promote socially responsible 4. Please indicate the Number of permanent employees with
to comply with Apollo’s Partnership Pact (APP) and to engage with the disadvantaged, vulnerable and
practices amongst partners in the region. disabilities- 50
integrate environmental, occupational health & safety, marginalized stakeholders. If so, provide details thereof,
ethical practices, human rights and labour policies into 5. Do you have an employee association that is recognized by in about 50 words or so.
4. Has the Company taken any steps to procure goods
their business and decision-making processes. management? Yes, the organisation lays special emphasis to address the
and services from local & small producers, including
Yes needs of these identified stakeholders. Care for society, one
The organisation is committed to work jointly with its communities surrounding their place of work?
of the core values at Apollo Tyres, is a guiding practice. The
Partners to promote and encourage compliance. Till a) If yes, what steps have been taken to improve their 6. What percentage of your permanent employees is members
organisation’s vision is to create value for its stakeholders by
date, more than 80% of the upstream supplier base capacity and capability of local and small vendors? of this recognized employee association?
bringing about positive change in their lives through its CSR
has signed the Apollo Partnership Pact to pledge their The Company promotes a policy towards encouraging Limda - 54%
initiatives. Some of the Company’s community engagement
compliance. The compliances to APP are verified during local procurement from domestic suppliers in the Perambra - 92%
programmes addressing these marginalised groups is listed
on-site supplier audits. The scope of audits covers respective regions as a purchasing principle and in this Chennai - 78%
below -
various elements like quality management system, regard, all other things being equal, the organisation Kalamassery - 88%
environment standards, occupational health and safety prefers domestic suppliers because of benefits like

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1. Healthcare for Trucking Community a) Tree plantation and Livelihood Generation Programme 7. Number of show cause/ legal notices received from Apart from mapping the core initiatives with SDGs, the
Our afforestation project has a two pronged focus CPCB/SPCB which are pending (i.e. not resolved to organisation emphasises on linking the initiative with SDG
2. Sanitation Programme in Chennai & transhipment
on carbon sequestration and livelihood generation satisfaction) as on end of Financial Year. 17: Partnership for Goals. Our focus is on collaborating with
locations
for farmers in the water starved areas of Tamil Nadu. There were no show cause notices issued or pending in the like-minded organisations for project implementation and a
3. Livelihood and income generation for underprivileged This project is being carried out in Kanchipuram, reporting period. wider outreach. Our ethos is to work in collaboration not in
women Tiruvannamalai and Tiruvallur districts in Tamil Nadu. silos.
Through this project, a total of 350,000 trees have been 07 PRINCIPLE
4. Improved / Organic farming practices for farmers The organisation has categorised its CSR initiatives in 4 core
planted since the inception of this project in 2013. We
1. Is your Company a member of any trade and chamber thematic areas:
In addition, the organisation also undertakes philanthropic have been able to sequester over 24,500 tonnes of CO2
or association? If Yes, Name only those major ones that
work through Taru Foundation like – from the plantation project. 1. Healthcare for Trucking Community;
your business deals with.
1) Supporting education for underprivileged girls Yes. The Company actively engages with Industry bodies. 2. Solid Waste Management and Sanitation;
b) Renewable Energy: Use of Biogas
The major bodies in which the Company is a member are
2) Monthly ration support to the underprivileged Within the Climate change mitigation strategy, we 3. Livelihood for underprivileged Women ;
listed below –
are promoting the use of biogas in villages near our
3) Education support for differently abled children 4. Biodiversity Conservation.
manufacturing location in Limda, Gujarat. Apart from a. Confederation of Indian Industry [CII]
4) Medicine support to underprivileged section providing an eco-friendly alternative source of energy, In addition to the above there are a few Local Initiatives
b. Federation of Indian Chamber of Commerce and
the programme offers additional benefits of organic around our manufacturing locations. These are Watershed
Industry [FICCI]
05 PRINCIPLE manure from slurry, utilisation of cow dung (which is a Management and Renewable Energy Proliferation projects.
solid waste) and savings accruing from fuel replacement c. PHD Chamber of Commerce and Industry
1. Does the policy of the Company on human rights Further, the organisation also undertakes philanthropic
from LPG to Biogas. We provide individual household
cover only the Company or extend to the Group/Joint d. Society of Indian Automobile Manufacturers initiatives through Taru Foundation.
type Biogas units. Since the inception of the project in
Ventures/Suppliers/Contractors/NGOs/Others?
2016, a total of 230 units have been installed. e. Automotive Tyre Manufacturers’ Association In continuation to our efforts to serve our stakeholders,
Respect for human rights is fundamental part of the DNA of
the organisation rolled out various initiatives to combat
the Company and the communities in which we operate. In
3. Does the Company identify and assess potential 2. Have you advocated/lobbied through above associations COVID given the world is grappling with the pandemic. The
our Company and across our system, we are committed to
environmental risks? Y/N for the advancement or improvement of public good? relief work span from distribution of ration, food packets
ensure that people are treated with dignity and respect. The
Yes, environmental aspects & impacts are assessed and Yes/No; if yes specify the broad areas (drop box: to local communities to distribution of face masks and PPE
Company promote the awareness and realization of human
reviewed periodically by the management. Organization Governance and Administration, Economic Reforms, Kits. COVID awareness campaigns were organised across
rights across our value chain and among our stakeholders.
strive to minimize impact on environment by developing Inclusive Development Policies, Energy security, Water, project locations making people aware about COVID
The Company believe in core Apollo Value of “One Family” environmental improvement programs and operational Food Security, Sustainable Business Principles, Others) safety guidelines through various awareness mediums like
where every individual is respected and is treated equally, control procedures. Chennai, Kalamassery, Limda & Yes, the Company through various Industry associations, hoardings, pamphlets distribution, public announcement
regardless of caste, color, nationality etc. Perambra manufacturing units certified for ISO14001: 2015 participates in advocating matters for the advancement etc. The organisation developed in house digital training
and environmental risk and controls reviewed by third party of the Industry and Public Good. As a member of the material to sensitise the community.
2. How many stakeholder complaints have been received auditors. Automotive Tyre Manufacturers Association (ATMA), the
in the past financial year and what percent was Company strives to be an active participant in policy making 1. Healthcare Programme for Trucking Community
satisfactorily resolved by the management? 4. Does the Company have any project related to Clean process of ATMA and also is a frequent participant in the  Linked with Sustainable Development Goal (SDG) - 3:
The Company did not receive any Stakeholder Complaint Development Mechanism? If so, provide details thereof, meetings with the Government departments to discuss the Good health and wellbeing, preventive healthcare
during the past financial year regarding Human Rights. in about 50 words or so. Also, if Yes, whether any challenges being faced by the industry in the ever-changing initiative for the truck driver community is a pioneer
environmental compliance report is filed? economic environment. Mr. Satish Sharma, President programme run by the organisation. Because of their
06 PRINCIPLE No (APMEA) and Whole-time Director of the Company, was mobile nature of work, truck drivers spend maximum
the past Chairman of ATMA. time on the roads and lack access to quality healthcare
1. Does the policy related to Principle 6 cover only the
5. Has the Company undertaken any other initiatives on – facilities.
Company or extends to the Group/Joint Ventures/ The Company has a Public and Regulatory Policy to ensure
clean technology, energy efficiency, renewable energy,
Suppliers/Contractors/NGOs/others. that the highest standards of business conduct are followed  To provide quality healthcare services to the mobile
etc.? Y/N. If yes, please give hyperlink for web page etc.
Policy related to principle 6 is limited to parent Company. while engaging with aforesaid Trade associations/ Industry population, the organisation operates 31 Healthcare
Yes, combining effective strategy with practical measures
Chennai, Kalamassery, Limda & Perambra manufacturing bodies. Centres in the transhipment hubs spanning across 19
is key to achieving successful energy management. We
units are ISO 14001:2015 certified. Environmental indicators Indian states. The programme provides healthcare
focus on reducing our energy consumption by being energy
are part of vendor assessment criteria for upstream suppliers.
efficient. There are several initiatives that were undertaken 08 PRINCIPLE services such as Prevention and Awareness of HIV-AIDS,
Vision Care, Integration of Tuberculosis and other Non-
during the reporting period in the Indian Operations 1. Does the Company have specified programmes/
2. Does the Company have strategies/ initiatives to Communicable diseases such as Diabetes, High Blood
which resulted in energy savings of 26,356 GJ. We are initiatives/projects in pursuit of the policy related to
address global environmental issues such as climate Pressure and General Treatment facility.
continuously making efforts to achieve energy efficiency Principle 8? If yes, details thereof.
change, global warming, etc.? Y/N. If yes, please give
through improvements in our process design, conversion The main aim of the CSR activities is to create a positive
hyperlink for webpage etc. Services Under Healthcare Programme:
and retrofitting of equipment and use of energy efficient impact on the everyday lives of our stakeholders. Environment
Yes, the Company has strategies to address global a. HIV-AIDS Awareness and Prevention service:
equipments. is also considered as a crucial stakeholder, hence Biodiversity
environmental issues. The Company also has a sustainability Among India’s millions of truckers, nearly half drive
features as a global initiative with projects ranging in India
statement that covers the aspects of environment on long distance routes and have been found to be at
6. Are the Emissions/Waste generated by the Company and Hungary.
conservation and community development. Various high risk of HIV and other STIs. Inadequate access to
within the permissible limits given by CPCB/SPCB for
sustainability initiatives taken by the Company includes The CSR initiatives are delivered through Apollo Tyres treatment of STI aggravates the risk of contracting and
the financial year being reported?
energy management, waste reduction, emission reduction, Foundation (ATF) registered in 2008 as a Trust. All the CSR transmitting the virus.
Emissions concentration across all our operating units are
water management, and biodiversity conservation. Below initiatives of the organisation are aligned with National
under prescribed limit. Under this initiative spectrum of services are offered
are the projects to mitigate climate change:- Goals and Sustainable Development Goals (SDGs).
i.e. Behaviour Change Communication (BCC), Sexually
Transmitted Infection Treatment (STI,) Counselling,

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Awareness through Peer Educators (PE), Condom patients are linked with the nearby government hospital started screening of diabetes and hypertension. At all lockdown and fear of COVID infection, lesser number
Promotion, Integrated Counselling and Testing Centre for further treatment. the HCC diabetes screening and blood pressure check- of people visited the healthcare centres for treatment.
(ICTC) support. ups are conducted.
 In the reporting year 32,611 people availed vision
2. Solid Waste Management and Sanitation
We deliver this service through staff and Peer Educators screening facility out of which 17,082 people were In the reporting year total 33,114 people have availed
India faces major environmental challenges associated
(PE) or volunteers. PEs are a vital connect between identified with refractive error issue and 2,361 diabetes testing facility. Out of these 7,174 people were
with waste generation and inadequate waste collection,
the organisation and the beneficiaries. They play an spectacles were distributed. identified at risk of diabetes.
transport, treatment, and disposal. To address the
important role in creating awareness about health
Also, there are other generic treatment facilities issue of Solid Waste Management and supporting the
services and referring the beneficiaries to healthcare c. Tuberculosis Awareness and Treatment
provided at each healthcare centre for ailments such as Clean India campaign, the Company launched SPARSH
centres for availing the treatment facilities. Due to their Over the recent years, India had been on its way
fever, cough, cold, flu and other basic first aid features. programme in 2013. This initiative is linked with SDG 6:
local connect, PEs are able to reach more number of to towards achieving the target of End TB by 2025,
Clean Water & Sanitation, SDG 11: Sustainable Cities
truck drivers through awareness activities and motivate declared by WHO. Nationally, the unprecedented
e. Mobile Medical Units (Apollo Tyres Healthcare and Communities, SDG 12: Responsible Consumption
them to avail healthcare services. COVID-19 has slowed down the momentum gained
Express) have been started to provide healthcare and Production.
by the TB programme. The routine TB related services
PEs are drawn upon from small restaurant (‘dhaba’) services to long-distance truck drivers who do not
were adversely affected due to COVID containment SPARSH stands for –
owners, mechanics, barber shop and street vendors etc. get the opportunity to visit the healthcare centres.
measures.
who are based at transhipment hubs and remain in close The mobile medical unit provides its services at the S – Segregate Waste; P – Practise Composting; A –

contact with truck drivers. Apollo Tyres has joined the ‘Jan Andolan’ for Tuberculosis highways, district borders and trucking halt points. Awareness Generation; R – Reduce, Reuse & Recycle;
(TB) free India to contribute to India’s National TB The main objective of this service is to provide doorstep S – Safe Sanitation; H – Hygiene for All. The strategy of
So far, the programme has mobilised about 1021 active
Elimination Programme (NTEP) to meet the ambitious healthcare facility for the trucking community. SPARSH remains to engage with its stakeholders create
PEs across its locations. They run awareness activities
goal of eradication of TB from India by 2025. The There are five (5) mobile medical units (Apollo Tyres awareness on the 3 R’s, i.e., Reduce, Reuse and Recycle.
independently. The organisation invests in building the
organisation has partnered with USAID, The Union and Healthcare Express) currently operational.
capacity of the peer educators. Periodic training and SPARSH programme comprises of four initiatives:
Central TB Division for TB initiative. In the reporting
capacity building workshops are organised with peer The Company also organises health camps (Sakushal Clean My Transport Nagar (CMTN), Clean my Village
year two webinars on the theme of Partnership for
educators to cascade the health awareness message Saarthi) for the benefit of the employees of its fleet (CMV), Sanitation Management and End of Life Tyres
Action against Tuberculosis (PAcT) were organised. The
within trucking community. During COVID times, owners. Playground (ELT).
main aim of the webinar was to invite more corporates
virtual training were organised to push the awareness
to join the partnership for TB elimination. The work in f. Oral Hygiene service was introduced in FY 19-20. The The organisation started Clean My Transport Nagar
messages related to protocols to follow.
this domain has earned a recognition certificate by the major factors that cause oral diseases include irregular (CMTN) and Clean My Village (CMV) initiatives with
They actively help in reaching out to the target audience Ministry of Health and Family Affaires (MoHFW). brushing habits, tobacco and alcohol consumption, lack the objective to improve the conditions of waste
at most opportune time, thereby becoming effective of awareness, etc. management and cleanliness of identified trans-
Company’s TB initiative primarily aims at awareness
messengers of healthcare programme and services. shipment hubs and villages in India. Under this initiative
generation, early diagnosis, and treatment adherence, During the field engagement with truck drivers, majority
basic services like door-to-door waste collection,
Total 26,822 people were tested for HIV during FY21 to reduce morbidity and mortality due to TB amongst of them reported addictions like tobacco consumption
cleaning of roads/lanes, segregation of waste,
out of which 49 people were identified as HIV positive. the trucking community. Apollo Tyres has opened (smoking and chewing) and other substance abuse due
composting from wet waste and awareness generation
Of these positive cases, 19 were linked with ART centres Designated Microscopy Centre (DMC) in Public Private to various reasons. Poor oral hygiene was identified as
are provided to the community. During COVID crisis
for HIV treatment service. Model at Agra, Gwalior, Guwahati, Mundra Port, Delhi, the health risk for this category, as poor dental health
also our waste workers (Nirmal brigade) were in the
Kanpur and Agartala location (seven centres). Out of increases the risk of oral cancer.
b. Vision Care service is targeted towards addressing forefront and continued their services.
the total 7 DMRC centres 02 (Agartala and Mundra
the vision related problems faced by the trucking Due to COVID pandemic and oral hygiene service was
Port) were inaugurated in the reporting year. In the reporting period total 1,300 metric ton (MT) waste
community. kept on hold in the reporting year.
was collected. Out of which 95 MT was biodegradable
Even though at national level TB eradication programme
Globally, an estimated 253 million people live with vision g. Tele Medicine Consultation Service was introduced waste and 1,205 MT was non-biodegradable waste.
was impacted due to COVID-19, however at Apollo
impairment, out of these nearly 14% are blind, and rest during COVID lockdown period to provide uninterrupted Total 10,503 touch points were covered through door
we were able to achieve significant result under TB
have moderate to severe vision impairment. Most of the medical consultation facilities to the trucking community to door waste collection. Over 2,500 people were
eradication initiative. Total 3,659 people were screened
visually impaired people are aged 50 years and above. while keeping in view social distancing requirements. outreached through awareness activities.
for TB testing and total 170 positive TB cases were
The burden of visual impairment in India is estimated at ATF has introduced tele medicine consultation facilities
identified. Out of these 151 positive cases were linked With a view to provide access to sanitation, the
62 million; which is about 24% of the global burden. at all the 31 healthcare centres with technical support
to DOTS centre for TB treatment. Company has constructed toilet cum bathing space
of Telerad Foundation. The facility has an online
Identifying vision impairment as a major health threat for the underprivileged communities around Chennai
consultation service with the doctor for the beneficiaries
to the trucking community, Apollo Tyres initiated its d. Diabetes and Hypertension: manufacturing location. The organisation constructed
who visit Apollo healthcare centres.
vision care initiative in the year 2015. The programme Non communicable disease like diabetes, cardiovascular 50 toilets cum bathing space in Chennai in the reporting
provides doorstep solution for vision care problems. disease and cancer are the leading global cause of death Total 8,569 people were benefitted through tele period. Around 200 people have been directly benefitted
All healthcare centres have specialised vision testing and are responsible for 70% deaths worldwide. In India consultation facility in the reporting period. from these constructed toilets.
facility and periodic vision testing camps are also 61% of deaths are from non-communicable diseases.
In the reporting year total 597,921 people were ATF has also constructed community toilets for the
organised in the transhipment hubs. The organisation Diabetes and hypertension are identified as 2 types of
outreached from awareness activities which was 18% trucking community at Agra and Delhi transhipment
has partnered with Essilor India Pvt Ltd (2.5 NVG) non-communicable diseases which affect the health of
more from 2019-20. The major reason for increased hubs. Total 4 toilets have been constructed and
for providing affordable and sustainable vision care the trucking community.
outreach has been the focused 15 days TB awareness maintained by ATF. Over 3,000 people have benefitted
services to the trucking community. Essilor India has
Due to lifestyle issues, lack of awareness and access to and testing campaigns organised across locations twice directly from the community toilets.
established customised vision care facilities at 6 Apollo
medical facilities, trucking community is more vulnerable in the year.
Healthcare Centres. The organisation is also conscious about the perils
and at higher risk of getting non-communicable
Total 104,422 people availed treatment facility at the of irresponsible disposal of used tyres. To reuse the
Beneficiaries identified with refractive error issues diseases. During our OPDs an increase in diabetes and
healthcare centres, which recorded a 40% decline in used tyres, organisation has initiated End of Life Tyre
are provided with low-cost spectacles and cataract high blood pressure cases amongst trucking community
comparison to the previous year. Due to nationwide
was an alarming sign and therefore the organisation

104 Apollo Tyres Ltd Annual Report 2020-21 105

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Playgrounds project. Various play structures like swings, Conservation is the main initiative, implemented at beneficiaries in saving costs associated with purchasing P hilanthropic Initiatives: The organisation also
climb walk etc. have been put up in these playgrounds Kannur district of Kerala. of conventional fuel. Beneficiaries have also received supports the underprivileged and deprived communities
for the children. In the reporting year 01 End of Life Tyre additional benefits as they utilise the slurry of the biogas by undertaking philanthropic initiatives through Taru
Mangroves are remarkably diverse and important
playground was constructed at Karanja Maharashtra as compost in their agriculture field which has helped in Foundation. The initiative ranges from providing
ecosystems that keep coastal zone healthy and habitat
location. Total 75 waste tyres were used and 350 improving the soil quality and cost saving on fertiliser education support to underprivileged girls to providing
friendly.
children shall be benefitted. purchase. Women gets more time to spend with family healthcare facilities to rural people and distributing
Our initiative focuses on conservation of mangroves and or engage themselves in income generation activity, as food items to eradicate hunger and poverty.
3. Livelihood for Underprivileged Women restoration of endangered species. The actual site of the they do not need to go out for collecting firewood.
The livelihood initiative addresses the Sustainable mangrove conservation project is in Kunhimangalam 2. Are the programmes/projects undertaken through in-
L ocal Initiatives: In addition to the above four

Development Goals (SDGs) SDG 5-Gender Equality and village in Kannur district, which is the largest mangrove house team/own foundation/external NGO/government
core themes, within the radius of 25-30 kms of our
SDG 1: Poverty. This is a key area of our focus, given that village in Kerala. The organisation has partnered with structures/any other organization?
manufacturing locations, various local initiatives are
India still has the highest percentage of people living Wildlife Trust of India (WTI) for the implementation of The Company’s CSR initiatives are implemented through
implemented which are based on local stakeholder
in poverty when compared to the world. This initiative mangrove conservation initiative in Kerala region. Apollo Tyres Foundation (ATF) which was registered in 2008.
requirement. Details of such initiatives are:
is also aligned with SDG8: Decent work and Economic Apollo Tyres Foundation has in-house team of experts and
In the reporting year, mangrove restoration activities
Growth. As it provides income generation opportunity Access to purified drinking water: The organisation has
 field staff to undertake the CSR activities.
were conducted in seven locations in association with
to the women at their doorsteps. set up a RO drinking water plant at Orgadam village,
various panchayats and Haritha Kerala Mission, Govt. The organisation focuses on building partnership for
Chennai Tamil Nadu and Chinnapanduru village,
COVID pandemic has worsened the condition of of Kerala. Around 2,600 saplings were planted. Due to implementation of CSR activities wherever it is possible. The
Chittoor Andhra Pradesh. Through this initiative
rural women, as lockdown restrictions has negatively COVID pandemic Mangrove restoration activities were idea is to maximise outreach through strategic partnerships
beneficiaries have access to purified drinking water.
impacted businesses & agriculture value chain. impacted. to avoid duplication of efforts, thereby ensuring optimum
Around 1,100 households and over 4,400 people are
utilisation of the available resources.
In the reporting year total 263 women were outreached To engage with the stakeholders the project had availing the drinking water facility.
through Self Help Group (SHGs) formation and organised series of webinars related to biodiversity We work with partner organisations which have similar
Eco restoration of Ponds: The organisation has mapped

strengthening activity. Our livelihood programme awareness and mangrove conservation. Total 08 interests and respect our organisation’s core CSR values.
the condition of water bodies through research study in
(Navya) was also impacted due to the COVID crisis. webinars were organised reaching out to over 580 ATF has established key linkages with government and
the communities around the manufacturing locations.
However, we focused on creating livelihood opportunity people. other support agencies to ensure stronger stakeholder
Based on the findings the organisation has restored
for rural women in their vicinity. 2,557 women were engagement for a sustained value through the programmes.
To commemorate the International Mangrove Day, a few ponds in Chennai, Limda and Perambra locations.
trained in different livelihood activities and 897 women
mangrove photography competition was organised. 79 The main objective of this initiative is improving the The organisation has adopted Public Private Partnership
started income generation activities to support their
participants submitted their entries under 3 different condition of water bodies, restoring and enhancing the (PPP) model, to explore synergies for realising shared goals
families.
categories i.e (1. Mangrove Habitat, 2. Mangrove Flora aqua biodiversity. Total 10 ponds, covering area of 3 effectively. Partnerships have augmented wider outreach
The programme also came up with the innovative idea and Fauna, 3. Mangrove and humans). lakh square feet have been restored by the organisation with enhanced services. For instance, Technical partnership
of digital engagement with community stakeholders through pond deepening, desilting, bunding and with USAID, The Union & Central TB Division for eradication
An inter State Environment and Nature Quiz for college
by providing them virtual trainings over whatsapp maintenance activity. of TB in Healthcare programme; partnership with Essilor
students was also organised, with the objective of
and video calls. Over 6,500 women received trainings Vision Pvt Ltd for setting up the vision testing facility and
creating awareness on mangrove, environment, and At Baroda location, the organisation also supports
on SHG management, government welfare schemes, affordable spectacles for the trucking community. For tele
nature conservation. Following the COVID protocol, the government’s pond deepening initiative under Sujalaf
agriculture related trainings among others. medicine consultation, ATF has partnered with Telerad
quiz was conducted online. 46 Students from 23 colleges Sufalam Jal Sanchay Abhiyan (SSJA). SSJA is a Gujarat
Foundation and has introduced teleconsultation facility at
We also ensured linking more women beneficiaries to of four different coastal states viz, Kerala, Maharashtra, state government’s water conservation programme
31 Healthcare centres. Other partnerships such as Ashok
various government schemes for livelihood generation. Andhra Pradesh, and Tamil Nadu competed in the quiz. to deepen water bodies in the state before monsoon.
Leyland, Ambuja Cement Foundation have led to pooling of
Total 3,133 women were linked to government welfare The scheme focuses on deepening of lakes, pond,
Over 2,000 people were outreached from various funds for better services to the beneficiaries.
schemes while 9 income generation units were linked check dams and rivers by removing silt through public
awareness activities in the reporting year.
with government schemes (Kudumbshree, MGNREGA, participation utilising the Mahatma Gandhi National Under community development, linkages have been
Government e-marketplace etc.) for product marketing Our Mangrove Conservation initiative received an Rural Employment Guarantee Act (MGNREGA). developed with National Rural Livelihood Mission for credit
and subsidy purpose. Total 108 SHG were linked with appreciation from the Haritha Kerala Mission of state linkage, NABARD for livelihood training and setting up rural
Under this same scheme, ATF has restored 01 pond in
banks for loan purpose. government of Kerala. This was given for the model mart for underprivileged women, Agriculture Universities
Tarasva village of Waghodia block in Baroda district.
ecological restoration initiatives undertaken by the and Agriculture Training Management Agency (ATMA) for
Additionally, the programme also supports male farmers This pond deepening project has provided livelihood
project and for being a partner in the ‘pachathuruth’ agriculture and livestock development related trainings
by providing them technical knowledge in improved opportunity to 180 beneficiaries under the MGNREGA
project of the Mission. and others. Apart from these, linkages with District Rural
farming practises and livestock care and management. scheme. The monetary value for the MGNREGA work
Development Authority (DRDA) and Kudumbshree for
The farmers are trained in improved farming practises The organisation also works on climate change done by 180 beneficiaries is estimated to be around
creating livelihood opportunities for rural women have been
like fodder management, seed selection, organic mitigation. Apollo Tyres has planted 350,000 teak trees ` 255,556.
developed. Other partnerships with the French Institute in
farming, cattle rearing and others. Farmers are also and red sandal trees in Tamil Nadu region. As per the
Support to Anganwadi & Public Health Centre (PHC) : India and NGO Box were introduced to enhance livelihood
linked with various Government agriculture schemes. estimation 24,500 tonnes of CO2 has been sequestered
The organisation provided equipment support like water for women in the rural sector.
Over 721 male farmers were benefitted through such till March 2021. The project also engages with the
filter, medicine rack, furniture etc. to the local PHC
activities in the reporting period. farmers for providing agriculture interventions for soil
at Chinnapandur village for the better infrastructure 3. Have you done any impact assessment of your initiative?
productivity enhancement.
facility and smooth functioning of the PHC. The material No impact assessment was conducted in the reporting year.
4. Biodiversity Conservation
With a view to promote use of renewable energy, the is provided after assessing the need and requirement
The organisation has mapped this initiative with SDG
organisation has also installed 231 household biogas of the local PHC. Additionally, to provide mid-day
13: Climate Action and Goal 14: Life below Water.
units in various villages of Waghodia Taluka, Vadodara. meal service to children below 5 years, some kitchen
Biodiversity conservation is the global theme for the
This initiative has not only helped in addressing equipment and utensils were also provided to the local
Company, wherein various projects are undertaken at
the climate adaptation, but has also helped the anganwadi centre at Chinnapandur village, Chittoor
Hungary and Netherlands location. In India, Mangrove
Andhra Pradesh.

106 Apollo Tyres Ltd Annual Report 2020-21 107

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

ANNEXURE IV
4. What is your Company’s direct contribution to 2. Does the Company display product information on
community development projects- Amount in INR and
the details of the projects undertaken?
the product label, over and above what is mandated
as per local laws? Yes/ No/ N.A./ Remarks (additional
Conservation of Energy, Technology Absorption, Foreign
Broad Areas of CSR Programs
Ensuring environmental sustainability
₹ Million
26.72
information)
The Company adheres to all legal requirements with respect
Exchange Earnings and outgo
Eradication hunger, poverty & 1.68 to product labelling and display of product information. All A) CONSERVATION OF ENERGY which can be implemented horizontally all across the
malnutrition data as per current laws are available on the tyre sidewall. location that will improve sustainability and profitability.
Livelihood enhancement projects 12.19 (i) The steps taken or impact on conservation of energy
Product labels are available on PCR Tyres as of now basis
Promoting Education 1.35 Practicing Energy Management Standard (ISO :50001)
current laws in India. • Deployment of energy efficient products to reduce fixed
Making Available Safe Drinking Water 0.31 all across Apollo Plants, which helped to improve & sustain
consumption.
Promoting Preventive Health 81.47 energy performance at Work Centre and also certified for
3. Is there any case filed by any stakeholder against the
Total 123.72 improved version of ISO 50001: 2018 from the year 2021. • Energy saving projects identified for more efficient usage
Company regarding unfair trade practices, irresponsible
Administrative Cost (5% over total 6.19 of utilities.
advertising and/ or anti-competitive behavior during the The Energy Saving Projects (energy consumption reduction,
expense)
Grand Total 129.91
last five years and pending as on end of financial year. If improving utility generation efficiency, heat recovery • Replacing old energy inefficient equipment’s with more
so, provide details thereof, in about 50 words or so. projects, alternated method and automated process) energy efficient equipment with quick & attractive
In various Consumer cases complainants allege about unfair identified in the process of practicing ISO:50001 are payback period along with proper life-cycle assessment
5. Have you taken steps to ensure that this community
trade practice by Apollo on warranty policies. No indent of implemented across locations. done.
development initiative is successfully adopted by the
such complaint in Competition Commission except a pending
community? Please explain in 50 words, or so Internal and External Energy Audits are conducted to • Power Generation by installing back pressure steam
CCI case initiated on the complaint of a dealers’ federation
Yes, Community is our key stakeholder, and the Company improve the Energy performance. turbine generator.
i.e. AITDF.
believes that development of the community is possible only
Energy Projects & Activities strengthened up:- • Energy saving projects related to Heat conservation
through continuous engagement and follow ups.
4. Did your Company carry out any consumer survey/ identified.
• New Improvement opportunity identified in Utility system
Under livelihood initiative across locations, women who consumer satisfaction trends?
(Chilled water, Steam & HVAC) and study of Distribution • Alternate method for curing being looked into to reduce
received tailoring training were involved in face masks and The Company regularly engages with customers through
network to identify gap & opportunities for improvement. the water consumption.
PPE production activity. Around 100 underprivileged women call center to get their feedback on the resolution provided
from various tailoring units across locations stitched over 1 for complaints registered through various channels to gauge • Energy Efficient LED Light deployment/replacement • Pilot of Project implementation of Automatic On Line
million reusable cloth masks for employees, community and their satisfaction levels. The Company has also empowered activities continues across all plants to reduce fixed condenser tube cleaning system to improve the chiller
other stakeholders and earned over `1 million in a month’s dealers with AQS (Apollo Quick Service) App for on the consumption. Energy efficiency.
time. Spot complaint disposition resulting in quick turn around
• Forward planning for optimized usage of energy sources • Pilot Project Implementation of Energy Efficient vacuum
and enhanced satisfaction trends for year under review.
09 PRINCIPLE The Company expanded its footprint for better and quick
(Direct & In-Direct) to control cost. Pump to improve the energy efficiency.

customer complaint resolution by empowering partially • Implementation of SCADA system to Monitor, Analyze & • Coal fired Boiler reliability improvement to reduce the
1. What percentage of customer complaints/ consumer
to selected Tractor OE Dealerships (M&M and TAFE). The control process side specific consumption. Hot standby of FO Boiler to reduce the FO consumption.
cases are pending as on the end of financial year.
findings of the feedback study are used to improve existing
The Company has a robust system for addressing customer • Horizontal deployment of identified energy saving • Pilot Project Implementation of Energy Efficient AHU
systems & processes in alignment to organizational goals.
complaints. As on March 31, 2021, there are no customer projects analyzed & reviewed for improving group’s with EC Fan and Sub colling system to improve the Energy
complaint pending. The total number of legal cases pending For and on behalf of the Board of Directors energy foot prints. efficiency improvement.
are 220 at Pan India level.
• Improvement carried out at coal fired boilers to reduce B) TECHNOLOGY ABSORPTION:
ONKAR KANWAR
the in-house steam consumption of power boiler.
Place : London Chairman & Managing Director (i) Efforts made towards Technology absorption
Date : May 12, 2021 DIN: 00058921 • Strengthened up training to identify the energy efficiency Technology leadership is at the core of all Research &
improvement projects. Development activities of the Company. Multidisciplinary
teams of scientists & technologists with a synergistic blend
• Focused Energy review meetings by Management.
of knowledge, experience & hard work are actively engaged
• Interplant Energy efficiency comparison and review by all in retaining Company’s technological leadership in India as
the plants. well as in overseas locations. It has made vital contributions
in product development, manufacturing and also improved
(ii) Steps taken by the Company for utilizing alternate
the productivity & efficiency of the Company. Despite the
sources of energy
hindrances caused by COVID 19 pandemic, Global R&D
As per Apollo’s vision to increase the percentage of renewable
centre Asia has undertaken and completed many projects
power contribution & reduce the carbon emission reduction,
in key areas of technology that have a direct bearing on
this year 13 MW on site solar power plant has been initiated
business growth for the Company. Membership with Centire
and additional 16 MW on site solar Power plant is being
research center of Virginia tech., USA, is giving access for our
evaluated in different manufacturing locations .
Company to many new avenues in research. PhD students
In addition, off-site Solar Power Plant of 30MW also has have been sponsored for research work with various IITs and
been initiated for implementation during this year. universities in India such as; IIT Madras, IIT Kharagpur, BITS
Goa, SRM University, Chennai & MG University, Kottayam.
(iii) Additional investment and proposal for reduction of
Global R&D centre having recognized by Anna University as
energy usage: (Investment in Energy front to reduce
an approved R&D Centre is giving opportunity to some of
cost & consumption)
our employees to enroll for the PhD programmes with the
This year also continued to identify energy saving projects

108 Apollo Tyres Ltd Annual Report 2020-21 109

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

University. Collaborative research projects are ongoing with (ii) Benefits derived like product improvement, cost Under the Motorcycle tyre category, the Company was achieved with innovative cavity design & carcass
IIT Bombay, Simulation software providers and also with reduction, product development or import substitution developed a range of products in with an aim to establishing architecture along with the development of cooler running
major steel cord manufacturers such as Bekaert. Company has emerged as a leader in the Passenger car a strong foothold in the high-value, highly profitable compounds. Also introduced XT-100HD, the most advanced
tyre segment in India Apterra Cross (5 sizes) series of tyres premium motorcycle tyre market, which caters to top 20% cross-ply lug tyre that offers the best of both worlds in load-
Collaborative work with multiple partners & suppliers of
was developed for the fast-growing compact SUV (CSUV) of the motorcycle market in India, entire markets in Europe carrying capacity and mileage, at the same time ensuring
the raw materials used across the tyre manufacturing,
segment in India. This product line has an aggressive design and Americas. We now have a global portfolio of high-end an extremely durable casing. Complementing with this was
secures the competitive advantage for our Company and
that performs well in all conditions, offering a quiet and bias and steel radial tyres for the two-wheeler segment. the new high NSD lug tyre, XT100HD capable of delivering
increases the engagement in knowledge, expertise, and
comfortable ride as well as extra durability for driving on Further to this, Company has made a strategy to focus more higher mileage along with better loading capacity which
resource sharing to make better products. Intense research
rough roads. In order to cater to the fast emerging segment on premium OEMs such as Royal Enfield, KTM, Bajaj, HMCL & ably blends two highly successful products of Apollo, the
on filler technology lead to enhanced longevity of the
of Eco-friendly and Fuel-efficient passenger vehicles, Apollo Harley-Davidson. Apollo was approved by Royal Enfield UK high mileage product XT100K & the high loading tyre XT7
tyres without sacrificing the fuel efficiency characteristics.
Amazer XP tyres (10 sizes) was introduced which is a new age Tech center for their new Classic model. Other OEM samples Gold HD, into one. This product is launched as 295/95D20
Functionally active chemicals were explored to improve the
product offering excellent comfort and is Eco-friendly. This evaluation are in progress. Also the focus continues on the size. New generation ply skim with heat aging resistant
interaction between rubber and filler aiming to meet the
product is also BS-VI compliant and electric vehicle ready. growth of EV segment and market expectations of the properties, developed on HEART platform has delivered 30%
critical electrical vehicle tyre performance. The use of new
These products have very low rolling resistance coefficient energy-efficient tyre in 2W category. Initial development improvement in durability.
generation process aids to assist in improving the rubber
(RRc) with superior comfort and silent ride, without jointly with an emerging EV OEM is in progress to meet the
filler interactions is being explored to get the maximum Newly commenced Global function of Process Technology
compromising the tyre wear life Export to EU continues performance targets in terms of low power consumptions,
benefit out of the compound without any compromise Development has made significant contributions over the
to be a major focus area for the Company. This year handling and grip characteristics.
on the productivity/processability. Unconventional and last two years since its inception.High Energy Electron
Company started production of 7 product lines covering the
innovative techniques have been employed to increase In continuation to previous year, high-power sport-touring Beam radiation technology has been successfully evaluated
summer, winter and all season product requirement of EU
the usage of recycled and regenerative materials in the motorcycle tyre was on high priority and our Company has and with the implementation, ~200 gm weight reduction
region. To meet the internal demand arising out of import
compound as a move towards sustainability to preserve the extended the range to cover the entire market with “Zero- can be achieved and can contribute towards improvement
restriction, Company swiftly introduced a full range of
environment. Attempts were made to develop environment Degree technology” under the Vredestein brand. Being a in Rolling resistance. New process of Steam-Nitrogen
products in the UHP range under the name of Apollo Aspire
friendly materials for a greener and safer environment. New sport-touring category, all the SKUs were evaluated for Wet/ circulation technology was developed to reduces bladder
4G+. Company also entered the premium luxury segment
generation reinforcement (steel cord and fabric) material Dry tests in track conditions. Also, Company has decided to surface temperature variation within 2°C ensuring uniform
with the introduction of Ultrac Vorti and Vorti under
is utilized to realize the benefit of RRC and Traction in introduce high-performance motorcycle tyres to the Indian cure across the tyre and ensure consistent durability.
Vredestein brand. Company also introduced a latest and
Commercial vehicle segment. New test methods have been market soon.. Centauro tubeless 17” Sizes were developed Apollo Mixing Technology (AMT) concept was developed
high performing range of product in SUV category as Apollo
developed for the characterization of rubber chemicals to cater to the Europe and US markets. In order to satisfy for increased efficiency in manufacturing by 15%, concept
Apterra HT2 and Apollo Apterra AT2. These products have
used in tyres and this has given the Company an additional the long hauling requirements of the Indian motorcycle proven after series of trials conducted at Chennai plant
been introduced in the US market as Vredestein Pinza
competitive advantage by way of know-how and tyre enthusiast, a new adventure series platform was developed and is planned to be implemented in Andhra plant in the
property enhancement through synergistic effect by To cater to the requirements of the fast growing SCV with good Off-road handling and durability characteristics. next expansion phase. Extrusion Efficiency was improved
different chemicals. The study of modified performance segment, Company introduced a new range of tyres under 1st phase SKUs of product ActiGRIP F6/R6 were introduced by 20% by devising a method to utilize third extruder in
resins has been a focal point in the development of high- the name of Altrust Grip. for premium motorcycles. This will cover the multiple Royal TBR triplex extruder. Similarly, effective utilization of
performance compounds. All these compound developments Enfield high potential models. quadruplex extruder is achieved to improve the extrusion
The Company’s leadership in the Truck & Bus Radial
ensured strict compliance of global regulatory requirements speed at least by 15%. Perennial problem of TBR tyre stuck-
category has continued in the year to deliver superior value Development of new products in 24.00-35 completed for
like REACh, PAH, ROHS, California Prop65, etc. up in top mould and damage to top bladder ring has been
to stakeholders. This includes commercialization of large cement mines with an aim to establishing leadership in
completely eliminated by introduction of dynamic drain
Recent advancements in simulation include method All Steel Radial Defense Tyres. The indigenously developed Cost Per Hour (CPH) performance. Successful introduction
time during the end of the cure cycle. Single Pass Mixing
development for predicting the influence of tyre tread products (under Atmanirbhar Bharat), 14.00R20 and of haulage special radial tyre for tractor application in size
Technology Concept is developed and implemented for
patterns on wet grip performance of tyres. An exclusive wear 16.00R20 EnduTerraMaxx-A have been commercialized 380/85R28 was completed as well.
soft Compounds at Tandem Mixer. 15% Energy efficiency
code developed in-house is being implemented in design for supplies to Defense and OEMs post approval from
With the commissioning of the multi-featured R&D skid trailer, improvement in mixing was successfully achieved.
process. This will reduce the cost of testing significantly. In the respective agencies. This also opens opportunities
despite the challenges during the period of pandemic, we are Quality and consistency improvement projects in Mixing,
the vehicle-level simulation, F-tire model establishment for for collaboration across globe for Defence supplies on a
now able to indigenize tests that were previously outsourced Calendering, and extrusion were undertaken and achieved
Truck Bus Radial tyres enabled to providing necessary input large scale.
from international test centres. Labelling/Certification tests best in class quality consistency in all the areas and is being
files to OEMs. This also facilitated realistic full vehicle model
Apollo also joined the elite group of global companies like Wet grip index test was approved by RDWin European horizontally deployed across all Apollo plants.
simulations to improve durability and vehicle ride comfort.
making large All Steel Radial tyres and is the first Indian Union, Traction & Handling characterization tests like Mu-
New simulation methodology developed for prediction and
player in this category. This year we were able to develop Slip and Force & Moment were all acknowledged by OEMs (iii) In case of imported technology (imported during last 3
analysis of pass-by-noise emitted by tyres at the accelerated
a popular basket of products for entry into the US market as great strides in capability building by the Company. years reckoned from the beginning of the financial year)
condition helped in tyre noise reduction to comply with new
and commercial production started in the new premium These capability building efforts have resulted in Significant Details of technology imported- No Technology was
a) 
legislation. Automation of layout design process for TBR
product name “EnduCombi”. Phase I of the development, savings in development cost and time. Increased simulation imported during this financial year.
have been done to reduce development time. Simulation
completed with 22 SKUs cover 35% of the market and Phase capability for tyre modeling and validation has also helped
time reduction and its process optimization has been a major b) Year of import- Not Applicable.
2 development of another 20 SKUs to increase the coverage the Company to be considered as the Preferred partner of
requirement and we have been successful in establishing a
to 60% is in progress. Range expansion of energy-efficient OEMs with the quick submission of tyre characteristic data Whether the technology been fully absorbed- We are
c) 
simulation automation tool for Truck Bus Radials. All these
tyre series continued with the introduction of nRG tubeless in real world usage pattern. focusing on the development of our own technology
developments will significantly increase the speed to market
tyre in 295/80R22.5 size, with significant saving potential through in house R&D efforts.
for the products. Employing these techniques has led to the The new generation Rib tyre, ABHIMANYU was developed
in the fuel bill for heavy commercial vehicles. Actions taken
development of many key products such as Ultra Low Noise with the latest tread technology delivering 15% extra d) If not fully absorbed, areas where absorption has
to upgrade existing products to retain a competitive edge
(ULN) tyre with new pattern concepts to reduce interior mileage with better durability and best in class casing not taken place and reasons therefore– The present
in the changing scenario post Axle load norms and BSVI
noise to meet stringent OE requirements. Durable Ultra value, proven after conducting extensive field evaluation in technology is based on our own R&D efforts.
implementation have paid well.
Low Rolling Resistance (DULRR) tyre with improved Product complex market conditions. This outstanding performance
durability has been first of its kind product development in
India.

110 Apollo Tyres Ltd Annual Report 2020-21 111

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

ANNEXURE V

Corporate Governance Report

C) FOREIGN EXCHANGE EARNINGS AND OUTGO
(iv) Expenditure incurred on Research and Development
Apollo Tyres’ governance framework enjoins the highest (b) Accountability is a key pillar, where there cannot be
(` Million) (i) Foreign Exchange Earnings ₹ Million
standards of ethical and responsible conduct of business to a compromise in any aspect of accountability and
On account of direct - export sales from 10,132.43
a) Capital 403.89 Apollo Tyres Ltd (FOB value) create value for all stakeholders. It continues to focus on good full responsibility, even as the management pursues
b) Deferred Revenue Expenditure –  On account of royalty from Foreign 51.31 corporate governance, in line with emerging local and global profitable growth for the Company;
c) Revenue 1,415.31 Subsidiary Companies standards. It understands and respects its fiduciary role in the
(c) Professionalism ensures that management teams
d) Total 1,819.20 On account of Cross Charge of 298.96 corporate world. Besides adhering to the prescribed corporate
at all levels are qualified for their positions, have a
e) Total R&D expenditure as a % turnover 1.60% Management Expenses from Foreign governance practices as per Regulation 4(2) read with Chapter
Subsidiary Companies
clear understanding of their roles and are capable of
IV of the SEBI (Listing Obligations and Disclosure Requirements)
On account of Reimbursement of 495.76 exercising their own judgment, keeping in view the
Regulations, 2015 (“Listing Regulations”), the Company
Expenses from Foreign Subsidiary Company’s interests, without being subject to undue
voluntarily governs itself as per highest standards of ethical and
Companies influence from any external or internal pressures;
responsible conduct of business in all facets of its operations and
(ii) Foreign Exchange outgo (other than 3,888.37
CIF value of imports) - in all interactions with its stakeholders, including shareholders, (d) Trusteeship brings into focus the fiduciary role of the
employees, consumers, lenders and the community at large. management to align and direct the actions of the
For and on behalf of the Board of Directors organisation towards creating wealth and shareholder’s
The prime focus of Companies Act, 2013 (the “Act”), is
value in the Company’s quest to establish a global
ONKAR KANWAR on shareholders’ democracy, higher transparency and
network, while abiding with global norms and cultures;
Place : London Chairman & Managing Director more disclosures, E- Governance, investor protection/
Date : May 12, 2021 DIN : 00058921 minority shareholders and on Professionals’ enhanced role & (e) As part of Corporate Responsibility, the Company
accountability. The current annual report of your Company believes in working towards sustainable development-
contains all the information and disclosures which are required environmental and social. Though the journey on
to be given under Companies Act, 2013 / Listing Regulations. sustainability is recent, it is already a key pillar in its
next five year growth journey;
This report, along with the report on Management Discussion
and Analysis and additional shareholders information provides (f) Safeguarding integrity ensures independent verification
the details of implementation of the corporate governance code and truthful presentation of the Company’s financial
by your Company as contained in the Listing Regulations. position. For this purpose, the Company has also
constituted an Audit Committee which pays particular
1. CORPORATE GOVERNANCE PHILOSOPHY attention to the financial management process;

At Apollo Tyres Ltd (‘Apollo”), corporate governance brings (g) C ontinuous focus on training and development of
direction and control to the affairs of the Company in a employees and workers to achieve the overall corporate
fashion that ensures optimum return for stakeholders. objectives while ensuring employee integration across
Corporate governance is the broad framework which defines national boundaries.
the way the Company functions and interacts with its
Your Company is open, accessible and consistent with its
environment. It is in compliance with laws and regulations
communication. Apollo Tyres shares a long term perspective
in each of the markets the Company operates, leading
and firmly believes that good corporate governance practices
to effective management of the organisation. Moreover,
underscore its drive towards competitive strength and
Apollo in its journey towards sustainability is integrating
sustained performance. Thus, overall corporate governance
sustainability practices in its corporate governance system
norms have been institutionalised as an enabling and
which goes beyond compliance.
facilitating business process at the Board, Management and
The Company is guided by a key set of values for all its at all operational levels.
internal and external interactions.
2. BOARD OF DIRECTORS
Simultaneously, in keeping with the best practices, your
Company seeks to execute the practices of corporate At Apollo, we believe that an active, well-informed and
governance by maintaining strong business fundamentals independent Board is necessary to ensure highest standards
and by delivering high performance through relentless focus of Corporate Governance. The Board of Directors of Apollo
on the following: Tyres, being at the core of its Corporate Governance
practice, plays the most pivotal role in overseeing how the
(a) Transparency by classifying and explaining the
management serves and protects the long term interests of
Company’s policies and actions to those towards
all our stakeholders.
whom it has responsibilities, including its employees.
This implies the maximum possible disclosures without Apollo’s Board consists of an optimal combination of
hampering the interests of the Company and those of Executive Directors and Independent Directors, representing
its stakeholders. The Company believes in promotion of a judicious mix of professionalism, knowledge and
ethical values and setting up exemplary standards of experience. The Directors bring in expertise in the fields of
ethical behaviour in our conduct towards our business strategy, management, human resource development, legal,
partners, colleagues, shareholders and general public; finance and economics, among others. The Board provides
leadership, strategic guidance, objective and independent

112 Apollo Tyres Ltd Annual Report 2020-21 113

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

(1) 
This includes Directorships held in Public Ltd. Companies
view to the Company’s management while discharging its fiduciary responsibilities, thereby ensuring that the management and Subsidiaries of Public Ltd. Companies and excludes their opinion and decisions are taken on the basis of
adheres to high standards of ethics, transparency and disclosure. Directorships in Private Ltd. Companies, Section 8 Companies and consensus arrived at after detailed discussions. They
Overseas Companies. are also free to bring up any matter for discussion at the
(a) Composition of Board: The size and composition of the Board meet the requirements of Regulation 17(1) of Listing (2) 
For the purpose of Committees of Board of Directors, only Audit Board Meetings.
Regulations. The Company’s Board of Directors consists of 14 Executive and Non-Executive Directors, including leading and Stakeholders’ Relationship Committees in other Public
professionals in their respective fields. The following is the percentage of Executive and Non-Executive Directors of the Ltd. Companies and Subsidiaries of Public Ltd. Companies Apollo Tyres’ Board meets at least once in every quarter
Company as on March 31, 2021: are considered. to discuss and review the quarterly results and other
(3)
During FY21, 7 (seven) Board Meetings were held. items of agenda, including the information required
% of Total no. of
Category of Directors No. of Directors (4)
Appointed as an Independent Director w.e.f. July 3, 2020. to be placed before the Board, as required under
Directors
Executive 3 21 (5)
Appointed as an Non-Independent Director w.e.f. August 21, 2020 Regulation 17(7) read with Part A, Schedule II of the
Non-Executive (including Independent Directors) 11 79 None of the Directors of your Company is a member of Listing Regulations and additional meetings are held
Total 14 100 more than 10 Committees or is the Chairman of more than as and when required. The meeting dates are usually
5 Committees across all the Companies in which he/ she is finalized well before the beginning of the year. The
The constitution of the Board and attendance record of Directors as on March 31, 2021 are given below:
a Director. Chairman/Vice Chairman of the Board, Chief Financial
No. of positions held in Other Directorship in listed Officer and the Company Secretary discuss the items
Companies Company(s) No. of Board
Attendance Ms. Pallavi Shroff and Mr. Akshay Chudasama are Managing
Name/Designation of
Executive/ Meetings to be included in the agenda and the detailed agenda,
Director
Non-Executive/
Board Committee
Name of the Position Attended(3)
at last AGM Partners of M/s. Shardul Amarchand Mangaldas & Co.,
Independent
(1) (2)
Company Held management reports and other explanatory statements
Solicitors and Advocates on record, to whom the Company
Member Chairman are circulated well in advance of the meeting. Senior
has paid fee of ₹ 9.13 million during FY21 for professional
Mr. Onkar Kanwar Promoter – 3 - 1 PTL Enterprises Chairman 7 Yes Management officials are called to provide additional
advice rendered by the firm in which they are interested. The
Chairman & Executive Ltd. inputs on the matters being discussed by the Board/
Managing Director Artemis Medicare Chairman Board has determined that such payment in the context of
Committee. Overseas operating subsidiaries are
Services Ltd. overall expenditure by the Company is not significant and
represented through President of respective regions
Mr. Neeraj Kanwar Executive 2 3 - PTL Enterprises NED 7 Yes does not affect their independence.
who make detailed presentations about working of their
Vice Chairman & Ltd.
As required under Regulation 25(3) of the Listing Regulations, respective Companies.
Managing Director Artemis Medicare NED
Services Ltd.
a separate meeting of the Independent Directors was held
Paperless Board Meetings: With a view to leverage
Mr. Akshay Non-Executive 1 1 - Bata India Ltd. ID 7 Yes on February 5, 2021. The Independent Directors at the
technology and reducing paper consumption, the Company
Chudasama Independent meeting, inter alia, reviewed the following:-
has adopted a web-based application for transmitting
Ms. Anjali Bansal Non-Executive 8 3 - Bata India Ltd. ID 7 Yes
• Performance of Non-Independent Directors and Board as Board/Committee Agenda. The Directors of the Company
Independent The Tata Power ID
a whole; receive the Agenda in electronic form through this
Co. Ltd.
application, which can be accessed through Browsers or
Voltas Ltd. ID • Performance of the Chairman of the Company, taking
iPads. The application meets high standards of security and
Siemens Ltd. ID into account the views of Executive Directors and Non-
Piramal ID
integrity that is required for storage and transmission of
Executive Directors;
Enterprises Ltd. Board/Committee Agenda in electronic form.
Gen. Bikram Singh Non-Executive - - - None - 7 Yes • Assessed the quality, quantity and timeliness of flow of
Post Meeting follow up procedure: The Board has an
(Retd.) Independent information between the Company management and
effective post meeting follow up procedure. Items
Mr. Francesco Gori Non-Executive - - - None - 7 Yes the Board that was necessary for the Board to effectively
arising out of previous Board Meeting and their follow up
Non-Independent and reasonably perform their duties.
Mr. Francesco Non-Executive - - - None - 4 Yes
action report are placed at the immediately succeeding
Crispino(4) (Appointed Independent In addition to formal meetings, interactions outside the meeting for information of the Board.
w.e.f. July 3, 2020) Board Meetings also take place between the Chairman and
Ms. Pallavi Shroff Non-Executive 5 3 - Trident Ltd. ID 5 Yes Independent Directors to discuss the issues and concerns, (d) Information placed before the Board of Directors
Independent Asian Paints Ltd. ID if any. The Board has complete access to all the information
Inter Globe ID available within the Company. The following
Aviation Ltd. (b) Performance evaluation of Independent Directors information, inter-alia, is provided periodically by the
PVR Ltd. ID The Company has devised a policy for performance management to the Board for its review:
Mr. Robert Steinmetz Non-Executive - - - None - 6 Yes evaluation of Independent Directors, Board, Committees
Non-Independent • Quarterly/ Half yearly/ Yearly financial results
and other individual Directors which includes criteria for
Mr. Satish Sharma Executive - - - None - 7 Yes (consolidated & standalone) and items arising out
performance evaluation of the Non-Executive Directors
Mr. Sunam Sarkar Non-Executive - - - None - 7 Yes of Annual Accounts.
and Executive Directors.
Non-Independent
Mr. Vikram S. Mehta Non-Executive 6 4 1 Colgate ID 7 Yes • Proceedings of various Committees of the Board
 For annual performance evaluation, the Company has
Independent Palmolive I Ltd. (on quarterly basis).
formulated a questionnaire to assist in evaluation of the
Mahindra & ID
performance. Every Director has to give rating for each • Minutes of the Subsidiaries (on quarterly basis).
Mahindra Ltd.
HT Media Ltd. ID question on the scale of 1 to 5, 1 being Unacceptable
• Internal/External Audit findings & recommendations
L & T Ltd. ID and 5 being Exceptionally Good. On the basis of the
(on quarterly basis).
Jubilant ID response to the questionnaire, a matrix reflecting the
Foodworks Ltd. ratings was formulated. • Report on Share Capital Audit (on quarterly basis).
Mr. Vinod Rai Non-Executive 3 3 1 IDFC Ltd. ID 7 Yes
Independent (c) Board Functioning & Procedure: Apollo Tyres’ Board is • Secretarial Audit Report (on Annual basis).
Mr. Vishal Non-Executive 2 1 - IDFC First Bank Non-ID 3 N.A. committed to ensure good governance through a style
Mahadevia(5) Non-Independent Ltd. • Related Parties Transactions (on quarterly basis).
of functioning that is self-governing. The members of
(Appointed w.e.f.
the Board always have complete liberty to express • Information on Cost Audit (on Annual basis).
August 21, 2020)

114 Apollo Tyres Ltd Annual Report 2020-21 115

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

• Compliance certificates on applicable laws of ATL & (e) Core Skills /Expertise/ Competencies available with S. No. Name of Director Expertise/ Skills management practices and their successful application
its Subsidiaries (on quarterly basis). the Board 10. Mr. Sunam Expert in sourcing of Raw Materials, in business.
The Board comprises of qualified members who possess Sarkar HR, IT, Sustainability, Business
• Compliance Reports, Investors Complaints, Corporate He has been conferred with ‘Ernst & Young Entrepreneur
required skills, expertise and competencies that allow Operations and Corporate Strategy.
Governance, Transfer/Transmission/Demat of shares of the Year Award – Manufacturing’ for the year 2012.
them to make effective contributions to the Board and 11. Mr. Satish Expert in the field of key functions
(on quarterly basis). He has recently been awarded with Hungarian ‘Order of
its Committees. Sharma like manufacturing, sales and
marketing, projects and R&D. Merit’, and Government of Japan’s ‘Order of Rising Sun,
• Foreign Exchange exposure & steps taken to limit the
The following skills / expertise / competencies have been Gold and Silver Star’.
risk (on quarterly basis). 12. Mr. Vikram S. Expert in the field of Sales/
identified/ available with the Board for the effective Mehta Marketing, Strategy and Profile of the Vice Chairman & Managing Director: As

• Material legal cases (on quarterly basis). functioning of the Company: Management. the Vice Chairman & Managing Director of Apollo Tyres,
• Investment/deployment of funds & borrowings (on 13. Mr. Vinod Rai Ex-Comptroller and Auditor Mr. Neeraj Kanwar plays a pivotal role in Apollo’s journey
• Leadership / Operational experience. General of India. Expert in Audit,
quarterly basis). towards becoming one of the most admired automotive
Banking, Finance and Corporate
• Legal Expertise. tyre brands. Mr. Neeraj Kanwar has pioneered key
• Annual Report (on Annual basis). Governance.
initiatives in enhancing the competitiveness of the
• Expertise in Strategy, Human Resource Development 14. Mr. Vishal Expert in the field on Finance,
• Capital and Revenue Budgets (on Annual basis). Company’s Operations and Products across the Board.
and Administration. Mahadevia Economics and Private Equity
Investments. He is responsible for crafting Apollo’s growth story taking
• Overall business scenario, operations of the Company
• Building effective Sales and Marketing strategies. the Company from US$450 million to US$2 billion within
(on quarterly basis).
(f) Relationship amongst Directors: Mr. Neeraj Kanwar, a 5-year time span. Under his able leadership, Apollo
• Expertise in International Tyre Business and
• Growth & Expansion plans at various operations, Vice Chairman & Managing Director is the son of acquired Dunlop Tyres International in South Africa
Technical Operations.
capital spent, business/financial justification and Mr. Onkar Kanwar, Chairman & Managing Director. and Zimbabwe in 2006, Vredestein Banden B V in the
time frame (as and when required). • Expertise in sourcing of Raw Materials, IT and None of the other Directors are related to each other. Netherlands in 2009, and the setting up of a Greenfield
Business Operations. facility in Hungary, thereby transforming itself into a
• Sales Forecast, Margin outlook etc. (on quarterly (g) Profile of the Chairman & Managing Director: As the
Company with operations across geographies.
basis). • Expertise in Auditing, Banking, Finance, Economics Chairman of Apollo Tyres Ltd, Mr. Onkar Kanwar is
and Corporate Governance. the chief architect of the Company’s vision and value- Mr. Neeraj Kanwar began his career with Apollo Tyres
• Banking facilities and its utilization (on quarterly
driven business strategy. Under his able leadership, as Manager, Product & Strategic Planning, where he
basis). • Expertise in Manufacturing, Projects and R&D.
Apollo became a professionally managed and a played a crucial role in creating a bridge between the
• Review of Material Events and Transactions (on • Expertise in Investment Banking and Private Equity globally recognised tyre manufacturer. As a visionary two key functions of Manufacturing and Marketing.
quarterly basis). Investments. entrepreneur, he plays a critical role in the articulation In 1998, he joined the Board of Directors and was
of Company’s business philosophy. promoted to Chief, Manufacturing and Strategic
• Global growth plans (as and when required). While all the Board members possess the skills identified,
Planning. His people management skills helped him
their area of core expertise is given below: Modernisation, excellence and quality are his guiding
• Codes and Policies (as and when required). bring overarching changes in Industrial Relations,
principles. Registered in 1972, Apollo Tyres under
upgradation of technology and benchmarking on
• Investment in Subsidiary Companies & providing S. No. Name of Director Expertise/ Skills his guidance transformed itself from an Indian
product and efficiency parameters.
guarantee etc.(as and when required). 1. Mr. Onkar Leadership/ Operational experience, manufacturer of commercial vehicle tyres, to a global
Kanwar expert in Strategy, Tyre Business entity with a full-fledged product portfolio. Mr. Onkar In 2002, he took over as the Chief Operating Officer
• Update on statutory compliance requirements and and Management. Kanwar is highly regarded for his constant emphasis of the organisation, wherein he introduced value-
implementation process (as and when required).
2. Mr. Neeraj Leadership/ Operational experience, on bettering the lives of people -- be it employees, driven process improvements in Human Resources
• Details on Labour Relations covering the Plants (on Kanwar expert in Strategy, Tyre Business customers, business partners, shareholders or any and Information Technology. Mr. Neeraj Kanwar
and Management.
quarterly basis). other stakeholder -- and responsiveness to change and was appointed Joint Managing Director in 2006 and
3. Mr. Akshay A lawyer, specialized in Mergers continuous learning. elevated to Vice Chairman in 2008, and soon after took
• Statement of all significant transactions and Chudasama and Acquisitions, Joint Ventures,
over as the Managing Director in 2009 for his initiatives
arrangements entered into by the Subsidiary Cross Border Investments, Private He is the Past President of the Federation of Indian
in establishing the Company in the global arena.
Companies (on quarterly basis). Equity etc. Chambers of Commerce and Industry (FICCI) and a
4. Ms. Anjali Bansal Expert in Strategy, International former Chairman of the Automotive Tyre Manufacturers’ As a business leader, Mr. Neeraj Kanwar is associated
• Noting of Report on Health & Safety (on quarterly
Finance and Business and Human Association. Currently, he is the Chairman of BRICS with leading industry associations and was recently
basis). Resource Development. Business Council, India. the Chairman of the Automotive Tyre Manufacturer’s
• Disclosure of interest/ declaration of independence/ 5. Gen. Bikram Former Chief of Indian Army and Association, India.
Singh (Retd.) an expert in Administration and Mr. Onkar Kanwar has a keen interest in the field of
declaration u/s 164 received from Directors (on
Strategy. education and health care. Artemis Health Sciences, Mr. Neeraj Kanwar is a people-centric leader and
Annual Basis).
6. Mr. Francesco Expert in the field of International promoted by him, is an enterprise focusing on state- believes in empowering employees to undertake
• Fixation of Statutory Responsibilities/ Grant of Gori Strategy, Product Development of-the-art medical care and runs a cutting edge multi- effective and efficient decisions at all times. Within
Power of Attorney (as and when required). & Management, Sales and specialty medical facility which focuses on holistic Apollo, he is known for his affable management style,
Marketing. treatment. An initiative close to his heart is Apollo Tyres’ and combine work with liberal doses of fun.
• Operation of Bank Accounts (as and when required).
7. Mr. Francesco Expert in the field of Investment HIV-AIDS awareness and prevention programme for the
An engineering graduate from Lehigh University in
• Re-appointment of Secretarial Auditor (on Annual Crispino Banking and Corporate Law. commercial vehicle driver community, implemented
Pennsylvania, USA, Mr. Neeraj Kanwar is an avid
Basis). 8. Ms. Pallavi A lawyer, with an expertise through Apollo Tyres Foundation’s Health Care centres
sportsperson. He prefers to spend his leisure time with
Shroff in ad-hoc arbitrations and located in large transshipment hubs across India.
The Chairman, Vice Chairman, CFO and Company institutional arbitrations and his family or playing tennis, swimming and travelling.
Secretary keep the members of the Board informed handling legal disputes. A Science and Administration graduate from the
(h) No. & Dates of Board Meetings held: During the FY21,
about any material development/business update 9. Mr. Robert Expert in International Tyre University of California, Mr. Onkar Kanwar is a widely
7 (seven) Board Meetings were held on April 17, 2020,
through various modes viz. emails, letters, telecon etc. Steinmetz Business and Technical Operations. travelled individual. He devotes a large part of his time
April 21, 2020, May 19, 2020, August 5, 2020, November
from time to time. to reading and is passionate about learning modern
4, 2020, February 3, 2021 and March 22, 2021. The gap

116 Apollo Tyres Ltd Annual Report 2020-21 117

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

between any two meetings never exceeded 120 days as the Statutory Auditors during the meetings of the • Reviewing and monitoring the auditor’s independence • Review of management letters/letters of internal
per the requirements of Regulation 17(2) of the Listing Committee and the quarterly/half-yearly and annual and performance, and effectiveness of audit process; control weaknesses issued by the statutory auditors;
Regulations. audited financials of the Company are reviewed by the
• Approval or any subsequent modification of • Review of internal audit reports relating to internal
Audit Committee before consideration and approval
(i) Statutory Compliance of Laws: The Board periodically transactions of the Company with related parties; control weaknesses and the appointment, removal
by the Board of Directors. The Committee also reviews
reviews the compliance report of the laws applicable to and terms of remuneration of the internal auditor;
Internal Control Systems and IT systems. • Scrutiny of inter-corporate loans and investments;
the Company as well as steps taken by the Company to
• Review of statement of deviations, if any:-
rectify the instances of non-compliance, if any. As per Regulation 18(3) read with Part C of Schedule • Valuation of undertakings or assets of the Company,
II of the Listing Regulations and Section 177 of the wherever it is necessary; a) Quarterly statement of deviation(s) including report
(j) Recommendation of Committees: During the FY21, the
Act, the Audit Committee has been entrusted with the of monitoring agency, if applicable, submitted to
Board has accepted all the recommendations of the • Evaluation of internal financial controls and risk
following responsibilities:- stock exchange(s) in terms of Regulation 32(1).
Committees. management systems;
b) Annual statement of funds utilized for purposes
(k) Compliance by Independent Directors: In the opinion • Oversight of the Company’s financial reporting • Reviewing, with the management, performance of
other than those stated in the offer document/
of the Board, the Independent Directors fulfill the process and the disclosure of its financial information statutory and internal auditors, adequacy of the
prospectus/notice in terms of Regulation 32(7).
conditions specified in the Listing Regulations and are to ensure that the financial statement is correct, internal control systems;
independent of the management. sufficient and credible; The Chairman of the Audit Committee has confirmed
• Reviewing the adequacy of internal audit function,
to the Board that the Audit Committee during the year
(l) Independent Director Databank Registration: • Recommendation for appointment, remuneration if any, including the structure of the internal audit
under review has complied with all the roles assigned to
Pursuant to a notification dated October 22, 2019, and terms of appointment of auditors of the department, staffing and seniority of the official
it pursuant to the Act and Listing Regulations.
issued by the Ministry of Corporate Affairs (MCA), all Company; heading the department, reporting structure
the Independent Directors, subject to the guidelines coverage and frequency of internal audit;
• Approval of payment to statutory auditors for any (b) Meetings of Audit Committee and attendance of
prescribed by the MCA, were required to register online
other services rendered by the statutory auditors; • Discussion with internal auditors of any significant members during the year
with the Indian Institute of Corporate Affairs (IICA)
findings and follow up thereon; During the FY21, 4 (four) Audit Committee Meetings
within the stipulated time for inclusion of their names • Reviewing with the management, the annual
were held on May 18, 2020, August 4, 2020, November
in the Independent Directors Databank. Accordingly, financial statements and auditor’s report thereon • Reviewing the findings of any internal investigations
3, 2020 and February 2, 2021.
all our Independent Directors have completed the before submission to the Board for approval; by the internal auditors into matters where there is
registration with the Independent Directors Databank. suspected fraud or irregularity or a failure of internal Name of
No. of
• Reviewing matters required to be included in the Designation Category of Director meetings
control systems of a material nature and reporting Director
attended
(m) Resignation by Independent Director: During the year, Director’s Responsibility Statement to be included
the matter to the Board; Mr. Vinod Rai Chairman Non- Executive 4
no Independent Director has resigned. in the Board’s report in terms of clause (c) of sub-
Independent
section (3) of Section 134 of the Companies Act, • Discussion with statutory auditors before the audit
(n) Total fee paid to Statutory Auditors on consolidated Mr. Akshay Member Non- Executive 4
2013; commences, about the nature and scope of audit as
basis: An amount of ` 15.21 million was paid/ payable to Chudasama Independent
well as post-audit discussion to ascertain any area
Statutory Auditors (excluding out of pocket expenses) • Reviewing changes, if any, in accounting policies and Ms. Pallavi Member Non- Executive 3
of concern; Shroff Independent
for all services provided to the Company and its practices and reasons for the same;
Subsidiaries during FY21, on a consolidated basis and • To look into the reasons for substantial defaults in Mr. Robert Member Non- Executive 3
• Reviewing major accounting entries involving Steinmetz Non-Independent
all entities in the network firm/ network entity of which the payment to the depositors, debenture holders,
estimates based on the exercise of judgment by
the Statutory Auditor is a part. shareholders (in case of non-payment of declared
management; In addition to the members of the Audit Committee,
dividends) and creditors;
these meetings were attended by Vice Chairman &
3. AUDIT COMMITTEE • Reviewing significant adjustments made in the
• Review of the functioning of Whistle Blower Managing Director, Chief Financial Officer, President
financial statements arising out of audit findings;
The primary objective of the Audit Committee is to monitor Mechanism; (APMEA), President (Europe), Group Head (Corporate
and provide effective supervision of the Management’s • Reviewing compliance with listing and other legal Accounts & Taxation), Internal Auditor, Cost Auditor
• Approval of appointment of Chief Financial Officer
financial reporting process with a view to ensuring requirements relating to financial statements; and Statutory Auditor of the Company, wherever
after assessing the qualifications, experience and
accurate and timely disclosures, with the highest levels of necessary, and those executives of the Company who
• Reviewing disclosure of any related party background etc. of the candidate;
transparency, integrity and quality of financial reporting. were considered necessary for providing inputs to the
transactions;
• Review of investments made by the unlisted Committee.
(a) Composition & Terms of Reference of Committee • Reviewing modified opinion(s) in the draft audit Subsidiary;
The Company Secretary acts as Secretary of the
The Board of Directors constituted an Audit Committee report;
• Reviewing the utilisation of loans and/or advances Committee.
in the year 1992. The powers, role and terms of reference
• Reviewing with the management, the quarterly from/investment by the Holding Company in the
of the Audit Committee cover the areas as contemplated The Chairman of the Audit Committee, Mr. Vinod Rai,
financial statements before submission to the Board Subsidiary exceeding `100 Crore or 10% of the asset
under Regulation 18 of Listing Regulations and Section was present at the Annual General Meeting of the
for approval; size of the Subsidiary, whichever is lower including
177 of the Act. Company held on August 20, 2020.
existing loans/ advances/investments;
• Reviewing with the management, the statement of
The Audit Committee comprises of four Directors viz. The Committee invites the Directors who are not the
uses/application of funds raised through an issue • Consider and comment on rationale, cost-benefits
Mr. Vinod Rai, Mr. Akshay Chudasama, Mr. Robert members of the Committee, to attend the meeting as
(public issue, right issue, preferential issue etc.), the and impact of schemes involving merger, demerger,
Steinmetz and Ms. Pallavi Shroff, with two-thirds an invitee.
statement of funds utilized for purposes other than amalgamation etc., on the Company and its
of the members as Independent Directors. Mr. Vinod
those stated in the offer document/prospectus/ shareholders;
Rai, Independent Director, acts as the Chairman (c) Role of Internal Auditor
notice and the report submitted by the monitoring
of the Committee. All the members are financially • Review of Management Discussion and Analysis of The Company has a well-established and independent
agency, monitoring the utilization of proceeds of
literate and possess the requisite financial/business financial condition and results of operations; Internal Audit function, which provides assurance to the
a public or rights issue, and making appropriate
acumen to specifically look into the internal controls management, on design and operating effectiveness
recommendations to the Board to take up steps in • Review statement of significant related party
and audit procedures. Members have discussions with of internal controls and systems, as well as suggest
this matter; transactions submitted by Management;

118 Apollo Tyres Ltd Annual Report 2020-21 119

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

improvements to systems and processes. Internal three members which are Non-Executive Independent (c) Policy for appointment and remuneration Executive Officer/Managing Director/Whole Time Director/
Audit assesses and promotes strong ethics and values Directors viz. Mr. Vinod Rai, Mr. Akshay Chudasama and In terms of Section 178 of the Companies Act, 2013 Manager (including Chief Executive Officer/Manager, in
within the organisation and facilitates maintaining Ms. Pallavi Shroff. Mr. Vinod Rai is the Chairman of the and Regulation 19 of Listing Regulations, this policy case they are not part of the Board) and shall specifically
and monitoring the internal control environment. Committee. on nomination and remuneration of Directors, Key include Company Secretary and Chief Financial Officer.
Internal Audit responsibilities encompass all locations, Managerial Personnel (KMP), Senior Management and
The Nomination and Remuneration Committee has The Nomination and Remuneration Committee shall have
operating entities and geographies of the Company, in other employees of the Company has been formulated
devised a policy on Board diversity in terms with the discretion to consider and fix any other criteria or norms for
which all aspect of business, viz. operational, financial, by the Nomination and Remuneration Committee of the
requirement under Regulation 19 of Listing Regulations. selection of the most suitable candidate(s).
information systems and regulatory compliances are Company and approved by the Board of Directors. The
reviewed periodically. The Company Secretary acts as the Secretary of the salient features of the aforesaid policy is given as below:
2. Criteria for Determining Positive Attributes &
Committee.
The Internal Audit has a well laid down internal audit Independence of Directors
1. Criteria for Appointment of Director and Senior
methodology, which emphasis on risk based internal Criteria for determining positive attributes:
(b) Brief description of the Terms of Reference Management
audits using data analytics. The Internal Audit prepares The Committee shall consider the following factors for
 The Nomination and Remuneration Committee has The Committee shall consider the following factors
a rolling annual internal audit plan, comprising of determining positive attributes of Directors (including
been entrusted with the responsibilities to review for identifying the persons who are qualified to
operational, financial, compliance and information Independent Directors):
and grant annual increments, vary and/or modify the becoming Director and who can be appointed in Senior
systems audits, covering all the locations, operations
terms and conditions of appointment/re-appointment Management: 2.1 Directors are to demonstrate integrity, credibility,
and geographies of the Company. The audit plan for the
including remuneration and perquisites, commission trustworthiness, ability to handle conflict constructively,
year is reviewed and approved by the Audit Committee 1.1 The Committee shall identify and ascertain the integrity,
etc. payable to Managing Directors within the overall and the willingness to address issues proactively.
at the beginning of each financial year. qualification, expertise and experience of the person for
ceiling of remuneration as approved by the members.
appointment as Director or at Senior Management level 2.2 Actively update their knowledge and skills with the
The Internal Auditor reports to both, the Chairman and
The Committee in its meeting held on May 15, 2014, and recommend to the Board his/her appointment. latest developments in the Tyre/ Automobile industry,
the Audit Committee of the Company. On quarterly
had noted the following terms of reference pursuant to market conditions and applicable legal provisions.
basis, the Internal Auditor reports to the Audit 1.2 A person should possess adequate qualification,
Section 178 of the Act & Regulation 19(4) read with Part
Committee, the key internal audit findings, and action expertise and experience for the position he/she is 2.3 Willingness to devote sufficient time and attention to the
D Schedule II of Listing Regulations:-
plan agreed with the management, the status of audits considered for appointment. The Committee has Company’s business and discharge their responsibilities.
vis-à-vis the approved annual audit plan and status of discretion to decide whether qualification, expertise
• Formulation of the criteria for determining 2.4 To assist in bringing independent judgment to bear
open audit issues. Direct reporting to the Chairman and experience possessed by a person are sufficient/
qualifications, positive attributes and independence on the Board’s deliberations especially on issues of
and the Audit Committee establishes Internal Audit as satisfactory for the concerned position.
of a Director and recommend to the Board a policy, strategy, performance, risk management, resources,
a function independent from the business.
relating to the remuneration of the Directors, Key 1.3 An Independent Director shall mainly possess key appointments and standards of conduct.
Managerial Personnel and Other Employees. appropriate skills, experience and knowledge in one
(d) Subsidiary Companies 2.5 Ability to develop a good working relationship with
or more fields of finance, law, management, sales,
The Company does not have any material non-listed • Formulation of criteria for evaluation of performance other Board members and contribute to the Board’s
marketing, administration, research, corporate
Indian Subsidiary Company. However, the Company has of Independent Directors and the Board of Directors. working relationship with the senior management of
governance, technical operations or other disciplines
5 material non-listed overseas Subsidiaries. the Company.
• Devising a policy on diversity of Board of Directors. related to the Company’s business.
The Audit Committee of the Company reviews the 2.6 To act within their authority, assist in protecting the
• Identifying persons who are qualified to become 1.4 The Company may appoint or continue the employment
financial statements, in particular the investments legitimate interests of the Company, its shareholders
Directors and who may be appointed in Senior of any person as Whole-time Director who has attained
made by all unlisted overseas Subsidiary Companies. and employees.
Management in accordance with the criteria the age of seventy years subject to the approval of
Significant issues pertaining to Subsidiary Companies
laid down, and recommend to the Board their shareholders by passing a special resolution. The
are also discussed at Audit Committee meetings. A Criteria for determining Independence:
appointment and removal. explanatory statement annexed to the notice for such
summarised statement of important matters reflecting The Independent Director shall qualify the criteria of
motion shall indicate the justification for appointing
all significant transactions and arrangements entered • To see that the level and composition of remuneration independence mentioned in Section 149(6) of the Companies
such person.
into by the Subsidiary Companies, included in the is reasonable and sufficient to attract, retain and Act, 2013 and rules related thereto and in Regulation 16(b)
minutes of the above overseas Subsidiary Companies motivate Directors of the quality required to run the 1.5 The Company should ensure that the person so & 25 of Listing Regulations.
are placed before the Board of Directors of the Company Company successfully. appointed as Director/Independent Director/Senior
and are duly noted by it. The performance of all its Management Personnel shall not be disqualified under 3. Remuneration of Directors, Key Managerial Personnel
• To see that the relationship of remuneration
Subsidiaries is also reviewed by the Board periodically. the Companies Act, 2013, rules made thereunder, or any (KMP) and Other Employees
to performance is clear and meets appropriate
other enactment for the time being in force. On the appointment or re-appointment of Managing
The Company has a Policy for determining material performance benchmarks.
Director, Whole-time Director and KMPs, the Committee
Subsidiaries and the same is available on website 1.6 The Director/Independent Director/Senior Management
• To see that remuneration to Directors, Key will recommend to the Board for their approval, the
of the Company (Refer link: https://corporate. Personnel shall be appointed as per the procedure laid
Managerial Personnel and Senior Management remuneration to be paid to them. The Committee shall
a p o l l o t y r e s . c o m /e n - i n / i n v e s t o r s /c o r p o r a t e down under the provisions of the Companies Act, 2013,
involves a balance between fixed and incentive recommend to the Board, all remuneration to be paid to
governance/?filter=CodesPolicies ). rules made thereunder, or under Listing Regulations or
pay reflecting short and long-term performance the Senior Management Personnel. The remuneration
any other enactment for the time being in force.
objectives appropriate to the working of the to all other employees shall be as per HR policy of the
4. NOMINATION AND REMUNERATION COMMITTEE
Company and its goals. 1.7 Independent Director shall meet all criteria specified in Company.
(a) Constitution and Composition of the Committee Section 149(6) of the Companies Act, 2013 and rules
• To decide whether to extend or continue the term The annual increment of remuneration for Managing
The Board of Directors had constituted a Remuneration made thereunder and/or as specified in Regulation
of appointment of the independent director, on the Director/Whole-time Directors shall be made on the
Committee in the year 2003. The powers, role and terms 16(b) & 25 of Listing Regulations.
basis of the report of performance evaluation of basis of the resolution approved by the shareholders.
of reference of the Nomination and Remuneration
Independent Directors. The term “Senior Management” means the officers/ The annual increment in Salary of KMP (other than
Committee covers the areas as contemplated under
personnel of the Company who are members of its core Managing Director/Whole-time Directors), Senior
Listing Regulations and Section 178 of the Act. The • Recommend to the Board, all remuneration, in
management team excluding Board of Directors, comprising Management Personnel shall be recommended by
Nomination and Remuneration Committee comprises of whatever form, payable to Senior Management.
of all members of management one level below the Chief the Committee to the Board. The annual increment in

120 Apollo Tyres Ltd Annual Report 2020-21 121

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Salary for all other employees shall be made as per HR Remuneration to Non- Executive Independent/Non- No. of 435, Mr. Neeraj Kanwar- 380 and Mr. Satish
Name of
policy of the Company. Independent Director: Designation Category of Director meetings Sharma- 71.
Director
attended
Sitting Fees:
The level and composition of remuneration as Mr. Vinod Rai Chairman Non- Executive 3 3) The percentage increase in the remuneration of
determined by the Committee shall be reasonable and The Non-Executive/Independent Director may receive Independent Mr. Onkar Kanwar and Mr. Neeraj Kanwar for FY21
sufficient to attract, retain and motivate Directors, Key remuneration by way of fees for attending meetings of Mr. Akshay Member Non- Executive 3 is 81% over FY20 which is in line with increase in
Chudasama Independent
Managerial Personnel and Senior Management of the Board or Committee thereof. Provided that the amount profits. The increase is mainly due to payment of
Ms. Pallavi Member Non- Executive 3
quality required to run the Company successfully. of such fees shall not exceed One lakh per meeting of the higher commission linked to sharp rise in profits in
Shroff Independent
Board or Committee. The quantum of sitting fees will be FY21. The percentage increase in remuneration of
The relationship of remuneration to performance
determined as per the recommendation of Nomination Mr. Onkar Kanwar and Mr. Neeraj Kanwar is only
should be clear and meet appropriate performance (e) Payment of remuneration/sitting fee to the
and Remuneration Committee and approved by the 5% when compared with FY19.
benchmarks. The remuneration should also involve a Directors etc.
Board of Directors of the Company. Further, the
balance between fixed and incentive pay reflecting short The details of remuneration paid to Directors during The percentage increase in the remuneration
boarding and lodging expenses shall be reimbursed to
and long-term performance objectives appropriate to FY21 are given below. of Mr. Satish Sharma is 18% for FY21 over the
the Directors.
the working of the Company and its goals. previous financial year. The increase is mainly due
Commission: (i) Executive Directors/CFO/Company Secretary: to payment of variable component of performance
3.1 General (₹ million) bonus resulting from higher profits in FY21.
The profit-linked Commission shall be paid within the Mr. Satish
3.1.1 N omination and Remuneration Committee shall Mr. Onkar Mr.Neeraj
monetary limit approved by the Board/Shareholders Kanwar, Kanwar,
Sharma, There is no change in the remuneration of
recommend to the Board for its approval, the Particulars Whole-
of the Company subject to the same not exceeding 1% Managing Managing
time Mr. Gaurav Kumar, Chief Financial Officer.
remuneration, including the commission based on Director Director
of the net profits of the Company computed as per the Director
the net profits of the Company for the Non-Executive The percentage increase in the remuneration of
applicable provisions of the Act. Salary 45.00 39.48 13.08
Directors and Whole-time Director and other Executive Contribution to PF/ 14.32 12.56 4.16 Ms. Seema Thapar, Company Secretary, is 6%
Directors. The remuneration shall be subject to Stock Options: Superannuation/ during FY21 over the previous financial year.
the prior/post approval of the shareholders of the Gratuity
Pursuant to the provisions of the Act, an Independent The amount of total commission provided to Non-
Company. Commission/ 296.38 264.81 21.56
Director shall not be entitled to any stock option of the Executive Directors in FY21 is ₹45 million against
Performance Bonus
Company. Only such employees of the Company and ₹40 million paid in the FY20.
3.2 Remuneration to Whole-time/Executive/Managing Perquisites 65.12 51.36 29.72
its Subsidiaries as approved by the Nomination and Total Remuneration 420.82 368.21 68.52
Director The ratios of remuneration of Non-Executive
Remuneration Committee will be granted ESOPs. Stock Option NA NA NA
3.2.1 Fixed pay: Directors to median remuneration of employees
Criteria of making payments to Non- Executive Directors Service contracts, NA NA NA are as under:-
The Whole-time Director shall be eligible for notice period, severance
is disseminated on the website and same can be viewed
remuneration as may be approved by the shareholders fees Remunera- % increase in
Ratio to
at:-https://corporate.apollotyres.com/en-in/investors/ median
of the Company on the recommendation of the As per Section 198 of the Companies Act, 2013, Net Profit Name of tion for remuneration
remunera-
corporate-governance/?filter=CodesPolicies of the Company is amounting to ₹ 11,422.95 Million. Director FY21 (commission)
Committee and the Board of Directors. The break-up (₹Million) during FY21
tion of
employees
of the pay scale, performance bonus and quantum
Remuneration to KMP, Senior Management Personnel (₹ million) Mr. Akshay 5.00 21 5.17
of perquisites including employer’s contribution to
and Other Employees Mr. Gaurav
Ms. Seema
Chudasama
P.F, pension scheme, medical expenses, club fees etc. Kumar,
The KMP, Senior Management Personnel and other Thapar, Ms. Anjali 5.00 21 5.17
Particulars Chief Financial
shall be decided and approved by the Board on the Company Bansal
employees of the Company shall be paid monthly Officer
Secretary
recommendation of the Committee and shall be within Gen. Bikram 5.00 21 5.17
remuneration as per the Company’s HR policies and/or
the overall remuneration approved by the shareholders. Salary 11.25 1.80 Singh (Retd.)
as may be approved by the Committee. The break-up
Contribution to PF/ 3.04 0.49 Mr. Francesco 5.00 21 5.17
of the pay scale and quantum of perquisites including, Superannuation/
Minimum Remuneration: Gori
employer’s contribution to P.F, pension scheme, medical Gratuity Ms. Pallavi 5.00 21 5.17
If, in any financial year, the Company has no profits
expenses, club fees etc. shall be as per the Company’s Commission/ 10.12 1.38 Shroff
or its profits are inadequate, the Company shall pay
HR policies. Performance Bonus Mr. Robert 5.00 21 5.17
remuneration to its Whole-time Directors and Non-
Perquisites 22.70 4.03 Steinmetz
Executive Directors including Independent Directors The annual variable pay of managers is linked to the
Total Remuneration 47.11 7.70 Mr. Sunam 5.00 21 5.17
exclusive of sitting fees, in accordance with the performance of the Company in general and their
Stock Option N.A N.A Sarkar
provisions of the Companies Act, 2013 read with individual performance for the relevant year measured Service contracts, notice N.A N.A Mr. Vikram S. 5.00 21 5.17
Schedule V. against Company’s objectives fixed in the beginning of period, severance fees Mehta
the year. Mr. Vinod Rai 5.00 21 5.17
Provisions for excess remuneration: Disclosure pursuant to Section 197 (12) of the
This Remuneration Policy shall apply to all future/
If any Whole-time Director draws or receives, directly Companies Act, 2013 read with Rule 5(1) of the 4) The percentage increase in the median
continuing employment/engagement(s) with the
or indirectly by way of remuneration any such sums in Companies (Appointment and Remuneration of remuneration of employees is 11.5%.
Company. In other respects, the Remuneration Policy
excess of the limits prescribed under the Act or without Managerial Personnel) Rules, 2014 as amended:
shall be of guidance for the Board. 5) The total number of employees of Company as on
the approval required under the Act, he/ she shall
1) Managing Director(s)/Whole-time Director are March 31, 2021, were 15,821 out of which 7,427
refund such sums to the Company, within two years or
(d) Meetings of Nomination and Remuneration entitled to performance linked incentive in the form were permanent employees on the rolls of the
such lesser period as may be allowed by the Company
Committee and Attendance of members during of commission/ bonus, as a variable component, as Company.
and until such sum is refunded, hold it in trust for the
the year approved by the members.
Company. The Company shall not waive recovery 6) The average percentage increase in the salaries
During FY21, 3 (three) Nomination and Remuneration
of such sum refundable to it unless approved by the 2) The ratio of remuneration of each Director to the of employees other than the managerial
Committee Meetings were held on May 18, 2020,
Company by special resolution within two years from median remuneration of the employees of the personnel is 6% in FY21 over FY20. These figures
August 4, 2020 and December 18, 2020.
the date the sum becomes refundable. Company for FY21 is as follows: Mr. Onkar Kanwar- are not comparable with increase in managerial

122 Apollo Tyres Ltd Annual Report 2020-21 123

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

remuneration since due to voluntary surrender of 5. STAKEHOLDERS RELATIONSHIP COMMITTEE (d) No. of shareholders’ complaints received 7. BUSINESS RESPONSIBILITY (BR) COMMITTEE
partial remuneration, there was a decrease in the During FY21, the Company received 11 complaints
Stakeholders Relationship Committee oversees, inter-alia,  he Listing Regulations mandates the top 1000 listed
T
remuneration of Managing Directors in FY20. out of which one complaint was pending as on March
redressal of shareholder and Investor grievances, transfer/ Companies by market capitalisation to provide Business
31, 2021, which was received on March 31, 2021 and
7) Remuneration paid to the Directors is in accordance transmission of Shares, non-receipt of dividend declared, Responsibility Report (“BR Report”) in their Annual Report
dematerialistaion/ rematerialisation of shares and other replied within stipulated time. However, as on date of
with the remuneration policy of the Company. describing the initiatives taken by the Company from an
related matters. The roles and responsibilities of the this report, no complaints are pending other than those, environmental, social and governance perspective in the
Stakeholders Relationship Committee as prescribed under which are under litigation, disputes or court orders. Also format specified by the SEBI.
(ii) Non-Executive Directors:
the Act and Listing Regulations are mentioned under the there was no pending complaints at the beginning of
Sitting fees and commission paid/to be paid to the Non- The Company follows following nine core principles as
terms of reference of the Committee. the FY21.
Executive Directors is in pursuance of the resolution prescribed by SEBI and the entire BR Report is based on
passed by the Board. All other complaints were attended and resolved to the actions taken by the Company for the adoption of these
(a) Constitution and Composition of the Committee
satisfaction of the shareholders. principles:
Commission No. of Shares
The present Stakeholders Relationship Committee
Sitting fee provided for held as on comprises of three Directors viz. Mr. Onkar Kanwar, i. Businesses should conduct and govern themselves with
Name of Director
(₹Million) FY21 March 31, Mr. Sunam Sarkar and Mr. Akshay Chudasama.
6. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Ethics, Transparency and Accountability.
(₹ Million) 2021
Mr. Sunam Sarkar, Non-Executive Non-Independent COMMITTEE
Mr. Akshay 0.83 5.00 - Director, acts as the Chairman of the Committee. ii. Businesses should provide goods and services that are
(a) A brief outline of the Company’s CSR Policy
Chudasama safe and contribute to sustainability throughout their
Pursuant to Regulation 6 of Listing Regulations, The Company is committed to incorporating policies,
Ms. Anjali 0.54 5.00 - life cycle.
Bansal Ms. Seema Thapar, Company Secretary, acts as the systems and approaches to achieve its positive impact
Gen. Bikram 0.54 5.00 - Compliance Officer of the Company and Secretary to growth objectives. Deeply inherent in our vision iii. 
Businesses should promote the wellbeing of all
Singh (Retd) the Committee. statement are the principles of sustainability. The CSR employees.
Mr. Francesco 0.57 5.00 - approach stems from our vision statement focusing iv. Businesses should respect the interests of, and be
Gori (b) Terms of reference on “continuously enhancing stakeholder value”, which responsive towards all stakeholders, especially those
Mr. Francesco NIL NIL - This Committee has been formed with a view to includes the larger society and environment in which who are disadvantaged, vulnerable and marginalized.
Crispino* undertake the following: - the Company operates. The CSR philosophy of the
Ms. Pallavi 0.59 5.00 - Company rests on the principle of sustainability v. Businesses should respect and promote human rights.
Shroff • Approval of transmission of shares/debentures issued and self-reliance. It also embeds a dimension of vi. Business should respect, protect, and make efforts to
Mr. Robert 0.64 5.00 - by the Company, issue of duplicate certificates and philanthropy. At the core of Apollo’s responsibility restore the environment.
Steinmetz certificates after split/consolidation/replacement. belief is stakeholder engagement. Consequently, all
Mr. Sunam 0.69 5.00 - vii. Businesses, when engaged in influencing public and
Sarkar • Looking into the redressal of shareholders’ and the projects the Company has link to its stakeholders,
regulatory policy, should do so in a responsible manner.
Mr. Vikram S. 0.60 5.00 6,000 investors’ complaints and other areas of investor the issues they face and the issues organization has
Mehta services. identified to support on philanthropy front. viii. B usinesses should support inclusive growth and
Mr. Vinod Rai 0.77 5.00 - equitable development.
• Resolving the grievances of the security holders of the
Mr. Vishal NIL NIL
listed entity including complaints related to transfer/
(b) Composition of CSR Committee
ix. Businesses should engage with and provide value to
Mahadevia* The Board of Directors had constituted a Corporate
transmission of shares, non-receipt of annual report, their customers and consumers in a responsible manner.
non-receipt of declared dividends, issue of new/ Social Responsibility Committee in the year 2014. The
* Mr. Francesco Crispino and Mr. Vishal Mahadevia, Directors The Board of Directors at the meeting held on May 10, 2016,
had surrendered the sitting fees and commission payable to duplicate certificates, general meetings etc. present Corporate Social Responsibility Committee
them as Non-Executive Directors during the year. comprises of following four Directors viz. Mr. Onkar had constituted a Business Responsibility (BR) Committee.
• Review of measures taken for effective exercise of
Kanwar, Ms. Anjali Bansal, Mr. Sunam Sarkar and
An amount of ₹45 million be paid and disbursed as voting rights by shareholders. (a) Composition of BR Committee
General Bikram Singh (Retd.). Mr. Onkar Kanwar acts
commission, amongst the Directors of the Company The BR Committee comprises of four Directors viz.
• Review of adherence to the service standards as the Chairman of the Committee.
(other than Managing Directors and Whole-time Mr. Onkar Kanwar, Mr. Neeraj Kanwar, Mr. Sunam
adopted by the listed entity in respect of various
Director) equally in proportion to their tenure of Sarkar and Mr. Akshay Chudasama. Mr. Onkar Kanwar
services being rendered by the Registrar & Share (c) Meeting of CSR Committee and attendance of
Directorship for the financial year ended March 31, Transfer Agent. acts as the Chairman of the Committee.
members during the year
2021.
• Review of the various measures and initiatives taken During FY21, 2(two) meetings of CSR Committee were
(b) Meeting of BR Committee and attendance of
No convertible instruments of the Company were by the listed entity for reducing the quantum of held on May 19, 2020 and February 3, 2021.
members during the year
outstanding as on March 31, 2021. unclaimed dividends and ensuring timely receipt of No. of During FY21, a meeting of BR Committee was held on
Name of
dividend warrants/annual reports/statutory notices Designation Category of Director meetings May 18, 2020.
Save as otherwise provided in this report, apart from Director
attended
by the shareholders of the Company.
receiving Directors Remuneration, none of the Non- Mr. Onkar Chairman Executive 2 No. of
Name of
Executive Directors has any pecuniary relationships or (c) Meetings of Stakeholders Relationship Committee Kanwar Director
Designation Category of Director meetings
attended
transactions vis-a-vis the Company and attendance of members during the year Ms. Anjali Member Non-Executive 2
During FY20, 1(one) meeting of the Stakeholders Bansal Independent Mr. Onkar Chairman Executive 1
Kanwar
4. Directors and Officers Liability Insurance (D&O) Relationship Committee was held on February 3, 2021. Mr. Sunam Member Non-Executive 2
Sarkar Non-Independent Mr. Neeraj Member Executive 1
As per the provisions of the Act, the Company has taken Kanwar
No. of
a Directors and Officers Liability Insurance (D&O) on Name of Director Designation Category of Director meetings
Gen. Bikram Member Non-Executive 2
Singh (Retd.) Independent Mr. Sunam Member Non-Executive 1
attended
behalf of all Directors including Independent Directors, Sarkar Non-Independent
Mr. Onkar Member Executive 1
Officers, Managers and Employees of the Company Mr. Akshay Member Non-Executive 1
Kanwar Your Company has also laid down a CSR Policy in order
for indemnifying any of them against any liability in Chudasama Independent
Mr. Sunam Chairman Non-Executive 1 to execute its various CSR Initiatives.
respect of any negligence, default, misfeasance, breach Sarkar Non-Independent  The Company Secretary acts as the Secretary to the
of duty or breach of trust for which they may be guilty Mr. Akshay Member Non-Executive 1 The Company Secretary acts as the Secretary to the
Committee.
in relation to the Company. Chudasama Independent Committee.

124 Apollo Tyres Ltd Annual Report 2020-21 125

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

• Spearhead Risk Management initiative within the

8. RISK MANAGEMENT COMMITTEE Voting Pattern of the resolution passed through Postal dispatch of the notice. However, during FY21, the
Company.
Ballot, is as follows: Company has not send the physical Ballot Paper due to
 he Board at its meeting held on February 5, 2019, had
T
• Monitor emerging issues and share best practices. relaxation provided by Ministry of Corporate Affairs.
constituted a Risk Management Committee (RMC) of the Board 1) Appointment of Mr. Vishal Mahadevia (DIN:01035771)
Your Company has followed the aforesaid procedure
comprising of Directors and Senior Executives of the Company. • Improve Risk Management techniques and enhances as a Non-Executive Non–Independent Director
stipulated in the Companies Act, 2013 and has carried
awareness.

During FY21, 4 (four) meetings of RMC were held on May 18, Particulars Remote e-Voting out Postal Ballot for the item mentioned above.
2020, August 4, 2020, November 3, 2020 and February 2, 2021. • Set standards for risk documentation and monitoring. Total number of Valid Votes 1,558
As on date of this report, your Company does not
Votes cast in favour of the Resolution 418,834,889
No. of • Recommend training programs for relevant official with propose to pass any Special Resolution for the time
Name of Director/
Designation
Category of Director/
meetings
Votes cast against the Resolution 23,692,679
Official Official
attended specific Risk Management responsibilities. Number of Invalid Votes - being by way of Postal Ballot.
Mr. Sunam Sarkar Chairman Non-Executive 4 • Assess and manage risk for Company as a whole at global
Non-Independent 2) Private Placement of Non-Convertible Debentures 11. DISCLOSURES
level.
Mr. Francesco Member Non- Executive 4
Particulars Remote e-Voting (a) Related Party Transactions
Gori Non- Independent • Review and approve the Risk Register prepared by the
Total number of Valid Votes 1,557
Mr. Robert Member Non-Executive 3 Chief Risk Officers. In Compliance with Section 188 of the Companies Act,
Votes cast in favour of the Resolution 452,085,344
Steinmetz Non-Independent 2013, Regulation 23 of Listing Regulations and rules as
• Any other role or responsibility as may be delegated by Votes cast against the Resolution 24,481
Mr. Satish Sharma Member Executive 4 applicable, the Company has framed a Policy on Related
the Board of Directors from time to time. Number of Invalid Votes -
Mr. Vikram S. Member Non-Executive 4 Party Transactions including policy on materiality of
Mehta Independent
In addition to the above, the Committee also adheres to the 3) Amendment in Articles of Association of the Company related party transactions. The policy is to regulate
Mr. Benoit Member President 4
roles and responsibilities as specified in Clause C of Part D transactions between the Company and its related
Rivallant (Europe) Particulars Remote e-Voting
under Schedule II of Listing Regulations. parties based on the laws and regulations applicable
Mr. Gaurav Kumar Member Chief Financial 4 Total number of Valid Votes 1,544
Officer to the Company. The policy had become effective from
The Chairman of the Risk Management Committee makes Votes cast in favour of the Resolution 334,541,907
October 1, 2014.
Ms. Seema Thapar, Company Secretary, acts as Secretary the presentation before the Board on the major high risks of Votes cast against the Resolution 69,610,400
APMEA, Europe Region and Corporate Functions. Number of Invalid Votes - Further, there is no transaction of the Company with any
to the Committee.
person or entity belonging to the promoter/promoter
The roles and responsibilities of the Risk Management 4) Issuance of Compulsorily Convertible Preference Shares
9. CEO/CFO CERTIFICATION group which hold(s) 10% or more shareholding in the
Committee are as follows:- by way of preferential issue on a private placement
Company.
The Chairman & Managing Director and CFO have submitted basis
• Develop and maintain Risk Management charter and During the year, no transaction of material nature has
certificate, in terms of Regulation 17(8) read with Part B of
policies. Particulars Remote e-Voting
Schedule II of Listing Regulations to the Board. been entered into by the Company with its Promoters,
Total number of Valid Votes 1,551
• Advise business units and corporate functions on risk the Directors or the Management, their subsidiary or
Votes cast in favour of the Resolution 449,274,793
initiatives. relatives etc. that may have a potential conflict with the
Votes cast against the Resolution 2,836,374
Number of Invalid Votes - interests of the Company. Related Parties transactions
10. GENERAL BODY MEETINGS
with them as required under Indian Accounting
(a) The last three Annual General Meetings were held as under: 5) Revision in remuneration of Mr. Satish Sharma Standard (Ind AS-24) are furnished under Notes on
Financial
Date Time Venue
Special Resolution (DIN:07527148), Whole-time Director Accounts attached with the financial statements for
Year Passed
the year ended March 31, 2021.
2019-20 August 20, 03:10 PM Through Video Re-appointment of Gen. Bikram Singh (Retd.) (DIN: 07259060) as an Particulars Remote e-Voting
2020 Conference Independent Director. Total number of Valid Votes 1,550
(b) Disclosure of accounting treatment
2018-19 July 31, 2019 10:00 AM Kerala Fine Arts 1) Appointment of Mr. Robert Steinmetz (DIN: 00178792) as a Director. Votes cast in favour of the Resolution 450,649,206
Theatre, 2) Re-appointment of Mr. Akshay Chudasama (DIN: 00010630) as an There has not been any change in accounting policies of
Votes cast against the Resolution 1,461,485
Fine Arts Avenue, Independent Director. Number of Invalid Votes - the Company during the year.
Foreshore Road, 3) Re-appointment of Mr. Vikram S. Mehta (DIN: 00041197) as an
Ernakulam, Independent Director. 6) Re-appointment of Mr. Vinod Rai (DIN:00041867) as an (c) Risk Management
Kochi (Kerala) 4) Authorization for Private Placement of NCDs Independent Director The Company has a well laid out Risk Management
2017-18 August 1, 2018 -do- -do- Authorization for Private Placement of NCDs Policy, covering the process of identifying, assessing,
Particulars Remote e-Voting
mitigating, reporting and reviewing critical risks
(b) Resolutions passed last year through Postal Ballot: Total number of Valid Votes 1,554
impacting the achievement of Company’s objectives.
Resolution passed during FY21: Pursuant to Section 110 of the Companies Act, 2013, read with the Rule 22 of the Companies Votes cast in favour of the Resolution 435,601,869
There is an ongoing process to track the evolution of
(Management and Administration) Rules, 2014, the Company had conducted the following voting through Postal Ballot Votes cast against the Resolution 6,921,341
Number of Invalid Votes - risks and delivery of mitigating action plans. During the
(Including Electronic Voting) and sent the Postal Ballot Notice to members. The following resolutions were passed through
year under review, the risk assessment and mitigation
Postal Ballot:-
(i) Mr. P.P. Zibi Jose, Practicing Company Secretary, was procedures are periodically updated to the Board
Resolutions passed on September 24, 2020 appointed as the Scrutinizer to conduct the Postal through the Audit Committee.
Ballot process in a fair and transparent manner.
Last Date of Dispatch Ordinary/
Item approved by the shareholders
 The Company has formed Internal Risk Committees
of Postal Ballot Notice Special Resolution
(ii) Procedure for Postal Ballot: Where a Company is (IRCs), which review risk registers for Asia Pacific Middle
August 25, 2020 Ordinary 1) Appointment of Mr. Vishal Mahadevia (DIN: 01035771) as a Non-Executive Non-
required or decides to pass any resolution by way East Africa (APMEA) including India, Europe region and
Resolution Independent Director.
of Postal Ballot, it shall send a notice to all the Corporate Functions including United States (US) region
Special Resolution 2) Private Placement of Non-Convertible Debentures.
shareholders, along with a draft resolution explaining headed by President (APMEA), President (Europe) and
Special Resolution 3) Amendment in Articles of Association of the Company.
Special Resolution 4) Issuance of Compulsorily Convertible Preference Shares by way of preferential issue on
the reasons thereof and requesting them to send their Chief Financial Officer as Chairman of the respective
a private placement basis. assent or dissent in writing on a Postal Ballot because Committees and represented by the functional heads
Special Resolution 5) Revision in remuneration of Mr. Satish Sharma (DIN:07527148), Whole-time Director. Postal Ballot means voting by post or through electronic as Chief Risk Officers. The Committees review each risk
Special Resolution 6) Re-appointment of Mr. Vinod Rai (DIN:00041867) as an Independent Director. means within a period of thirty days from the date of on a quarterly basis and evaluate its impact and plans

126 Apollo Tyres Ltd Annual Report 2020-21 127

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

No. of No. of
for mitigation. Few cross-functioning teams have been Particulars
Shareholders shares
website and Stock Exchange websites www.nseindia. interactions, quarterly earnings calls and analyst meets
formed to share the common risks between dependent Aggregate number of 21 3,130 com and www.bseindia.com. were organised during the year. Your Company always
functions to avoid overlap of risks. The risks duly aligned shareholders and the believes in leading from the front with emerging best
- All material information about the Company is promptly
with the organisation objectives, documented in form outstanding shares in the practices in IR and building a relationship of mutual
sent to the stock exchanges and the Company regularly
of risk register are placed before Risk Management suspense account lying at the understanding with investor/analysts.
beginning of the year, i.e. April updates the media and investor community about its
Committee. The Risk Management Committee of the
1, 2020 financial as well as other organisational developments.
Company reviews the risks of APMEA, Europe and US 2) General Shareholder Information
Number of shareholders who Nil Nil
region, corporate functions and provides its directions - The transcript of the Analyst/Investor Conference Call (a) Registered Office 3rd Floor
approached to the Company
to the management, if any. for transfer of shares from
is posted on the website of the Company. Areekal Mansion, Near
suspense account during the Manorama Junction,
In the opinion of the Board, there has been no identified - This year in view of the outbreak of COVID-19 pandemic
year Panampilly Nagar,
element of risk that may threaten the existence of the and owing to the difficulties involved in dispatching
Number of shareholders to Nil Nil Kochi- 682036, Kerala, India
Company. of physical copies of Annual Report, the Ministry of
whom shares were transferred Ph:-91 484 4012046, 4012047
from suspense account during Corporate Affairs (“MCA”) has vide its Circular No.
Fax: 91 484 4012048
(d) Compliance by the Company the year 14/2020 (dated April 8, 2020), Circular No.17/2020
The Company has materially complied with the Shares transferred to IEPFA 21 3,130 (dated April 13, 2020) Circular No. 20/2020 (dated May
(b) Annual General Meeting (AGM):
requirements of the SEBI and other statutory authorities Account 5, 2020), and Circular No. 02/2021 (dated January 13,
The ensuing AGM of the Company will be held on Friday,
on all matters relating to capital markets during the Aggregate number of Nil Nil 2021), and SEBI vide its Circular No. SEBI/HO/CFD/
shareholders and the
July 23, 2021, at 3:00 PM through video conferencing or
last three years. No penalties or strictures have been CMD1/CIR/P/2020/79 (dated May 12, 2020) and
outstanding shares in the other audio visual means. Notice of the ensuing AGM is
imposed on the Company by the stock exchanges, SEBI Circular No.SEBI/HO/CFD/CMD2/CIR/P/2021/11
suspense account lying at the separately provided along with the Annual Report.
or any other statutory authoritiy. The Company has (dated January 15, 2021), directed the Companies to
end of the year, i.e. March 31,
developed an integrated compliance dashboard which 2021 send the Annual Report only by e-mail to all the Members
(c) Financial Calendar for FY22
provides reasonable assurance to the Management of the Company. Therefore, the Annual Report for FY21
Quarter Period ending Date / Period
and the Board of Directors regarding effectiveness of In terms of Section 124(6) of the Companies Act, 2013 and Notice of the AGM of the Company is being sent
First quarter June 30, 2021 On or before
timely compliances. All the Compliances applicable to (“Act”) read with Rule 6 of Investors Education and to the Members at their registered e-mail addresses in August 14, 2021
the Company have been captured in the Dashboard and Protection Fund Authority (Accounting, Audit, Transfer accordance with MCA and SEBI Circulars. The Annual Second quarter/ September 30, On or before
are mapped amongst the respective users. The timelines and Refund) Rules, 2016 (as amended from time to Report containing, inter-alia, Notice of Annual General half yearly 2021 November 14,
are fixed based on the legal requirement and the system time) (“Rules”), members whose dividend amount Meeting, Audited Financial Statement, Consolidated 2021
is aligned in such a manner that it alerts the users on a has not been paid or claimed for seven consecutive Financial Statement, Board’s Report, Management Third quarter December 31, 2021 On or before
February 14, 2022
timely manner. years or more, shares held by them shall be credited Discussion and Analysis, Corporate Governance Report,
Fourth quarter/ March 31, 2022 On or before
to the DEMAT Account of the Investor Education and Auditors’ Report and other important information May 30, 2022
The Company in order to further strengthen its year
Protection Fund Authority (IEPFA). During FY21, 3,130 are also displayed on the Company’s website (www.
compliance reporting and management system
shares held by aforesaid members, were transferred to apollotyres.com).
for its overseas subsidiaries, had also rolled out a (d) Trading window closure
the DEMAT Account of IEPFA constituted in accordance
Global Regulatory Compliance System (“Compliance - NSE Electronic Application Processing System (NEAPS)- The trading restriction period shall be made applicable
with the Rules, on December 28, 2020.
Management System/Tool”). is a web-based application designed by NSE for from the end of every quarter till 48 hours after the
The unclaimed or unpaid dividend which have already Corporates. All periodical and other compliance filings declaration of financial results.
The Compliance Dashboard captures the compliances
been transferred and the shares which are transferred, are filed electronically on NEAPS.
applicable to the Company at Indian level as well
can be claimed back by the shareholders from IEPFA by (e) Dates of Book Closure
as the international laws applicable to the overseas - BSE Listing Centre (Listing Centre)- BSE’s Listing Centre
following the procedure given on its website i.e. http:// The dates of the book closure shall be from July 17, 2021
subsidiaries. The Compliance dashboard also covers the is a web-based application designed for corporates. All
iepf.gov.in/IEPFA/refund.html. to July 23, 2021 (both days inclusive).
compliances relating to the codes and policies. periodical and other compliance related filings are filed
Nodal Officer:- Pursuant to Rule 7(2A) of the IEPF Rules, electronically on the listing centre.
The dashboard has been documented to provide a (f) Dividend Payment
Ms. Seema Thapar, Company Secretary & Compliance
comprehensive view of: - SEBI Complaints Redress System (SCORES): The The dividend of ₹3.50 per equity share for the FY21,
Officer, is appointed as Nodal Officer of the Company.
investors’ complaints are also being processed through subject to approval from shareholders, has been
• applicable laws to the Company;
the centralised web-based complaint redressal system. recommended by the Board of Directors. The same shall
(f) Disclosure in terms of Regulation 34(3) read with
• key control points; The salient features of SCORES are availability of be paid on or before 30 days from the date of AGM.
Schedule V Part C of Listing Regulations
centralised database of the complaints and uploading
• allocation of responsibilities. There are no inter-se relationships between the Board
online action taken reports by the Company. Through (g) Unclaimed Dividends
members except Mr. Onkar Kanwar and Mr. Neeraj
(e) Transfer of Unclaimed/ Undelivered Shares SCORES the investors can view online, the actions taken In terms of Section 124(5) of the Companies Act, 2013
Kanwar being father and son.
In terms with the provisions of Regulation 39(4) and current status of the complaints. In its efforts to (“Act”) if a member does not claim the dividend amount
read with Schedule VI of Listing Regulations, the improve ease of doing business, SEBI has launched a for a consecutive period of seven years or more, the
1) Means of Communication
unclaimed/undelivered shares lying in the possession mobile app “SEBI SCORES”, making it easier for investors unclaimed amount shall be transferred to the Investor
- As per Regulation 47(1)(b) of the Listing Regulations
of the Company are required to be dematerialised to lodge their grievances with SEBI, as they can now Education and Protection Fund (IEPF) established by
an extract of the detailed format of Quarterly/Annual
and transferred into a “Unclaimed Suspense Account” access SCORES at their convenience of a smart phone. the Central Government.
Financial Results is filed with the Stock Exchanges under
held by the Company. The status of unclaimed shares
Regulation 33 of the Listing Regulations. The results in - Investor Relations (IR)- Your Company continuously During the year, the Company had transferred
as on March 31, 2021 lying in “Unclaimed Suspense
prescribed format are published in the Newspapers viz. strives for excellence in its IR engagement with ₹2,592,128/- lying unclaimed in Unpaid Dividend
Account”/”Transferred to IEPFA Account” is as under:-
Financial Express (National Daily) and Mangalam/ International and Domestic investors. Structured Account in respect of Dividend for the year 2012-13 to
Kerala Kaumudi (Regional Daily). The Quarterly/Annual conference calls and periodic investor/analyst the said Fund on December 22, 2020.
Financial Results are also available on the Company’s

128 Apollo Tyres Ltd Annual Report 2020-21 129

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

(h) Listing at Stock Exchanges The Company’s share price on BSE and Sensex
1. National Stock Exchange of India Ltd 2. BSE Ltd
BSE SENSEX
Exchange Plaza, Bandra Kurla Complex, Phiroje Jeejeebhoy Towers, 1st Floor, Dalal Street Month
High (`) Low(`) Volume (in million) High Low
Bandra (E), Mumbai-400 051 Mumbai 400 001
T: +91 22 26598100-14 T: +91 22 22721233/34 April,2020 104.80 76.80 8.41 33,887.25 27,500.79
F: +91 22 26598237-38 F: +91 22 22721919/ 3027 May,2020 100.80 81.60 8.72 32,845.48 29,968.45
E: cmlist@nse.co.in E: corp.relations@bseindia.com June,2020 114.95 98.00 12.74 35,706.55 32,348.10
July,2020 119.50 105.90 7.32 38,617.03 34,927.20
The annual listing fee for FY21 has been paid to all the aforesaid stock exchanges. August,2020 138.95 107.60 13.65 40,010.17 36,911.23
September,2020 135.55 109.60 9.57 39,359.51 36,495.98
(i) Stock Code October,2020 152.55 124.10 6.16 41,048.05 38,410.20
BSE Ltd. 500877 November,2020 185.35 138.75 10.40 44,825.37 39,334.92
December,2020 200.00 170.25 12.98 47,896.97 44,118.10
National Stock Exchange of India Ltd. APOLLOTYRE
January,2021 239.60 174.65 21.21 50,184.01 46,160.46
February,2021 256.55 192.30 21.13 52,516.76 46,433.65
(j) Stock Market Price Data for FY21:
March,2021 261.20 208.10 9.56 51,821.84 48,236.35
The Company’s share price on NSE and Nifty Index
Apollo Tyres Shares Closing Price (₹) vis-à-vis BSE Sensex Close
NSE Nifty Index
Month
High (`) Low(`) Volume (in million) High Low
250 60000
April,2020 103.30 76.45 75.87 9889.05 8055.80
May,2020 100.80 81.05 187.84 9598.85 8806.75
June,2020 114.95 97.50 236.03 10553.15 9544.35 50000
200
July,2020 119.60 105.90 136.69 11341.40 10299.60
August,2020 139.00 107.55 240.34 11794.25 10882.25 40000
September,2020 135.55 109.55 172.05 11618.10 10790.20 150
October,2020 152.65 124.10 144.72 12025.45 11347.05
30000
November,2020 185.50 138.75 164.37 13145.85 11557.40
December,2020 200.00 170.35 202.78 14024.85 12962.80 100
January,2021 239.70 174.50 368.47 14753.55 13596.75 20000
February,2021 256.50 192.40 325.90 15431.75 13661.75 Apollo Tyres Shares Closing Price (`)
March,2021 261.25 208.00 168.06 15336.30 14264.50 50
BSE Sensex Close 10000

Apollo Tyres Shares Closing Price (`) vis-à-vis NSE Nifty Close
0 0
Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
250 16000

14000 (k) Shares Traded during April 1, 2020 to March 31, 2021
200 Particulars BSE NSE
12000 No. of shares traded (in million) 141.85 2,423.21
Highest Share Price (in `) 261.20 261.25
10000
150 Lowest Share Price (in `) 76.80 76.45
8000 Closing Share Price (as on March 31, 2021) 223.75 223.70
Market Capitalisation (as on March 31, 2021) ( ₹ in million) 142,104 142,072
100 6000
(l) Elimination of Duplicate Mailing
4000
50 Apollo Tyres Shares Closing Price (`) The shareholders who are holding physical shares in more than one folio in identical name, or in joint holder’s name in similar
Nifty Close 2000 order, may send the Share Certificate(s), along with request for consolidation of holding in one folio, to avoid mailing of
multiple annual reports.
0 0
Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 (m) Share Transfer System
SEBI has mandated that, effective April 1, 2019, no share can be transferred in physical mode. Hence, the Company has
stopped accepting any fresh lodgment of transfer of shares in physical form. The Company had sent communication to the
shareholders encouraging them to dematerialise their holding in the Company. The communication, inter alia, contained
procedure for getting the shares dematerialised. Shareholders holding shares in physical form are advised to avail the facility
of dematerialisation.

As per the requirement of Regulation 40(9) & 61 (4) of Listing Regulations the Company has obtained the half yearly
certificates from the Company Secretary in practice for due compliance of share transfer formalities.

130 Apollo Tyres Ltd Annual Report 2020-21 131

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

(n) Distribution of Shareholding Identification Number (ISIN) of the Company, as other document, to members in electronic form at the
The following is the distribution of shareholding of equity shares of the Company as on March 31, 2021:- allotted by NSDL and CDSL, is INE438A01022. e-mail address provided by them and/or available to the
Company by the Depositories.
Category No. of Shareholders % of Shareholders No. of Shares Held % of shareholding As on March 31, 2021, 98.74% of the share capital
UPTO 5000 236,477 99.56 39,422,820 6.21 stands dematerialised. BSE and NSE have permitted Members who have not yet registered their e-mail
5001 - 10000 452 0.19 3,404,121 0.54 trading of Apollo Tyres’ share into future and option address (including those who wish to change their
10001 - 20000 170 0.07 2,504,961 0.39 (F&O) segment w.e.f. February 19, 2010. already registered e-mail address) may get the same
20001 - 30000 49 0.02 1,206,065 0.19 registered/updated either with their depository
30001 - 40000 37 0.02 1,293,643 0.20 (q) Share Transfer/Demat Registry work participants or by writing to the Registrar & Transfer
40001 - 50000 31 0.01 1,410,908 0.22 All permitted share transfers/demat are being Agent of the Company.
50001 – 100000 63 0.03 4,539,392 0.72 processed in house. The Company has established direct
100001 AND ABOVE 225 0.10 581,319,036 91.53
connectivity with NSDL/CDSL for carrying out demat (u) Plant Location:
Grand Total 237,504 100.00 635,100,946 100.00
completely in house. 1. Perambra, P O Chalakudy,
Trichur 680 689, Kerala
The Promoter and Promoter group hold 236.98 million shares constituting 37.31% of the share capital of the Company as With effect from April 1, 2021, the Company has
on March 31, 2021. appointed the following Registrar and Transfer Agent :- 2. Limda, Taluka Waghodia,
Dist. Vadodara 391 760, Gujarat
Categories of shareholders as on March 31, 2021 KFin Technologies Private Limited
Selenium, Plot No. 31 & 32, Tower-B, 3. SIPCOT Industrial Growth Centre,
Category No. of shares %age
Serilingampally, Nanakramguda, Oragadam, Chennai, Tamil Nadu
Promoters 236,980,831 37.31
Financial District, Hyderabad-500032,
Mutual Funds/Bank/FIs Etc. 73,285,493 11.54 4. Kalamassery,
Govt. Of Kerala/KSIDC 10,000,000 1.57
State of Telangana
Alwaye,
FII/NRI etc. 156,527,758 24.65 Tel No. 040 67162222; Fax No. 040 23001153
Kerala – 683 104
Foreign Body Corporate 63,050,966 9.93 Toll Free Number: 1800 309 4001
Public 95,255,898 15.00 Email: einward.ris@kfintech.com 5. Chinnapandur Village,
Total 635,100,946 100.00 Website: https://kfintech.com/ Varadaiahpalem Mandal, Near Sricity,
Chitoor District- 517541
(r) Share Transfer Department Andhra Pradesh
All communications regarding change of address for
Public 6. Ir. Schiffstraat 370,
15.00%
shares held in physical form, dividend etc. should be sent
7547 RD Enschede, The Netherlands
Promoters at the Company’s RTA Office at:-
37.31%
Foreign Body 7. H-3212 Gyöngyöshalász,
KFin Technologies Private Limited
Corporate Road no.: 3210, Plot no.: 0106, Hungary
Selenium, Plot No. 31 & 32, Tower-B,
9.93%
Serilingampally, Nanakramguda,
(v) Address for correspondence for share transfer/demat
Financial District, Hyderabad-500032,
of shares, payment of dividend and any other query
State of Telangana
relating to shares.
Tel No. 040 67162222; Fax No. 040 23001153
KFin Technologies Private Limited
Toll Free Number: 1800 309 4001
Selenium, Plot No. 31 & 32, Tower-B,
Email: einward.ris@kfintech.com
Serilingampally, Nanakramguda,
Website: https://kfintech.com/
Financial District, Hyderabad-500032,
State of Telangana
FII/NRI etc. (s) ECS Mandate
Mutual Tel No. 040 67162222; Fax No. 040 23001153
24.65% All shareholders are requested to update their bank
Funds/Bank/FIs Etc. Toll Free Number: 1800 309 4001
Govt. of account details with their respective depositories
Kerala/KSIDC 11.54% Email: einward.ris@kfintech.com
urgently. This would facilitate transfer of dividend
1.57% Website: https://kfintech.com/
directly to the bank account of the shareholders.
(w) As on March 31, 2021, there were no outstanding GDRs/
(t) Participation & Voting at AGM ADRs/ Warrants or any convertible instruments.
Pursuant to the General Circular numbers 20/2020,
14/2020, 17/2020, 02/2021 issued by the Ministry (x) Adoption of mandatory and discretionary requirements
of Corporate Affairs and Circular numbers SEBI/HO/ of Corporate Governance as specified in Regulations 17
(o) Reconciliation of Share Capital Audit exchanges, where the Company’s shares are listed and
CFD/CMD1/CIR/P/2020/79, SEBI/HO/CFD/CMD2/ to 27 and Regulation 34(3) read with Schedule V (C) of
As stipulated by SEBI, a qualified Company Secretary also placed before the Board.
CIR/P/2021/11 issued by SEBI, the 48th AGM of the the Listing Regulations.
in practice conducts the Reconciliation of Share Capital
Company will be held through video conferencing and
Audit of the Company for the purpose of reconciliation (p) Dematerialisation of Shares and Liquidity 
T he Company has complied with all mandatory
the detailed instructions for participation and voting at
of total admitted capital with the depositories, i.e. The equity shares of the Company are being traded requirements of corporate governance with respect
the meeting is available in the notice of the 48th AGM.
NSDL and CDSL, and the total issued and listed capital under compulsorily demat form as per SEBI notification. to Regulations 17 to 27 and clauses (b) to (i) of Sub-
of the Company. The Company’s shares are tradable compulsorily Register e-mail address Regulation (2) of Regulation 46 of Listing Regulations.
in electronic form and are available for trading in
The Company Secretary in practice conducts such audit To contribute towards greener environment, the
the depository systems of both National Securities
in every quarter and issues a Reconciliation of Share Company proposes to send documents like shareholders
Depository Ltd. (NSDL) and Central Depository Services
Capital Audit Certificate to this effect to the Company. meeting notice/other notices, audited financial
(India) Ltd. (CDSL). The International Securities
A copy of such audit report is submitted to the stock statements board’s report, auditors’ report or any

132 Apollo Tyres Ltd Annual Report 2020-21 133

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Furthermore, the Company has complied with the requirements of the Schedule V of SEBI Listing Regulations in connection The Company enters into a variety of derivative financial (c) Credit Rating
with disclosures in this report. instruments like options, forwards & futures contract During the year, the following rating agencies, rated our
and currency & interest rate swaps, to hedge foreign bank facilities and other debt programs as under:-
CG Compliances
exchange rate risk and interest rate risk. The hedging is
i) On May 13, 2020, CRISIL has reaffirmed the
Particulars Regulation
Compliance Status done as per the Board approved policy. The Company, at
(Yes/No/NA) following rating:
all the times, comply with all the RBI hedging guidelines
Independent Director(s) have been appointed in terms of specified criteria of 16(1)(b) & 25(6) YES
that are prescribed from time to time. Long-Term Rating: CRISIL AA+/Stable (Includes
‘independence’ and/or ‘eligibility’
Loan-Term Loan, Fund Based Banking Facilities like
Board composition 17(1), 17(1A) & 17(1B) YES The Company’s exchange rate risk arises mainly from
Cash Credit etc.)
Meeting of Board of Directors 17(2) YES import (of raw material and capital items) and export
Quorum of Board Meeting 17(2A) YES (of finished goods) and follows a policy of matching of Short-Term Rating: CRISIL A1+ (Commercial Paper,
Review of Compliance Reports 17(3) YES import and export exposures (natural hedge) to reduce Non-Fund Based Banking Facilities like Letter Of
Plans for orderly succession for appointments 17(4) YES the net exposure in any foreign currency. Whenever the Credit etc.)
Code of Conduct 17(5) YES natural hedge is not available or is not fully covering
Fees/compensation 17(6) YES ii) On March 3, 2021, India Ratings and Research (Ind-
the foreign currency exposure of the Company,
Minimum Information 17(7) YES Ra) has affirmed the following rating:
the Company uses the above mentioned derivative
Compliance Certificate 17(8) YES
instruments to manage its exposure. Long-Term Rating: IND AA+/Stable (Includes Loan-
Risk Assessment & Management 17(9) YES
Term Loan, Fund Based Banking Facilities like Cash
Performance Evaluation of Independent Directors 17(10) YES The Company’s interest rate risk arises as the Company
Credit etc.)
Recommendation of Board 17(11) YES borrows funds at both fixed and floating interest
Maximum number of Directorships 17A YES rates. Some amount of this risk is managed by the Short-Term Rating: IND A1+ (Commercial Paper,
Composition of Audit Committee 18(1) YES Company through maintaining an appropriate mix of Non-Fund Based Banking Facilities like Letter Of
Meeting of Audit Committee 18(2) YES fixed and floating rate borrowings and also through an Credit etc.)
Composition of Nomination & Remuneration Committee 19(1) & (2) YES appropriate amount of interest rate swaps, especially,
Quorum of Nomination and Remuneration Committee meeting 19(2A) YES to hedge the floating rate borrowings to fixed one. (d) Auditors
Meeting of Nomination and Remuneration Committee 19(3A) YES M/s. Walker Chandiok & Co LLP, Chartered Accountants.
Composition of Stakeholder Relationship Committee 20(1), 20(2) & YES
3) Additional Information
20(2A)
(a) Investor Relations Section (e) Cost Auditors
Meeting of Stakeholders Relationship Committee 20(3A) YES
Composition and role of Risk Management Committee 21(1),(2),(3),(4) YES
The Investors Relations Section is located at the M/s. N.P. Gopalakrishnan & Co., Cost Accountants.
Meeting of Risk Management Committee 21(3A) YES Corporate Office of the Company.
With reference to the General Circular No. 15/2011
Vigil Mechanism 22 YES Contact person : M s. Seema Thapar, Compliance – 52/5/CAB-2011 dated April 11, 2011, issued by the
Policy for related party transaction 23(1), (1A), (5), (6), YES Officer Government of India, Ministry of Corporate Affairs,
(7) & (8)
Time : 10:00 AM to 6:00 PM on all working Cost Audit Branch, New Delhi, following are the details
Prior or Omnibus approval of Audit Committee for all related party transactions 23 (2) & (3) YES
days of the Company (except of Cost Auditor and filing of cost audit report with
Approval for material related party transactions 23(4) YES
Saturdays and Sundays) Central Government:
Disclosure of related party transactions on consolidated basis 23(9) YES
Composition of Board of Directors of unlisted material Subsidiary 24(1) YES
T: : +91 124 2721000
Details of Cost Audit
Other Corporate Governance requirements with respect to Subsidiary of listed entity 24(2),(3),(4),(5) YES F: : +91 124 2383351 Report filed for the
Particulars of the Cost Auditor
E: : investors@apollotyres.com period ended March 31,
& (6) 2020
Annual Secretarial Compliance Report 24(A) YES Mr.N.P.Sukumaran Filing date:
Alternate Director to Independent Director 25(1) N.A. (b) Bankers (M No.4503) September 8, 2020
Maximum Tenure 25(2) YES Axis Bank Ltd. Apartment No.311,
Meeting of Independent Directors 25(3) & (4) YES Bank of India 4th Floor, D.D.Vyapar Bhawan,
Familiarization of Independent Directors 25(7) YES BNP Paribas K.P.Vallon Road, Kadavanthra P O,
Declaration from Independent Director 25(8) & (9) YES Canara Bank Kochi - 682 020(Kerala)
D & O Insurance for Independent Directors 25(10) YES E-mail : npgco@gmail.com
Citibank N.A.
Memberships in Committees 26(1) YES Federal Bank
Affirmation with compliance to code of conduct from members of Board of Directors 26(3) YES ICICI Bank Ltd. (f) Code of Conduct for Prevention of Insider Trading
and Senior Management Personnel
IDBI Bank Ltd. In compliance with the SEBI regulations on prevention
Disclosure of Shareholding by Non-Executive Directors 26(4) YES
Kotak Mahindra Bank Ltd. of insider trading, the Company has formulated a
Policy with respect to Obligations of Directors and Senior Management 26(2) & 26(5) YES
Mizuho Bank Ltd. comprehensive Code of Conduct for ‘Prevention of
The Company has adopted following discretionary requirements of Regulation 27 read with Schedule II Part E of the Listing Standard Chartered Bank Insider Trading’ in the securities of the Company. This
Regulations:- State Bank of India Code of Conduct is applicable to Promoters, Directors,
Sumitomo Mitsui Banking Corporation Chiefs, Vice Presidents/ Group Heads, Heads and such
Modified Opinion(s) in audit report
The Bank of Nova Scotia other employees of the Company and others who are
The Company is in the regime of financial statements with unmodified audit opinion. MUFG Bank Ltd. expected to have access to unpublished price sensitive
The Hongkong and Shanghai Banking Corporation information.
Reporting of internal auditor
Limited
The Board at its meeting held on May 12, 2015, has
The internal auditor is reporting directly to the Audit Committee. Union Bank of India
approved the Code of Conduct for Prevention of Insider
RBL Bank Ltd.
(y) As on March 31, 2021, our shares were not suspended from trading. Trading, in terms with the SEBI (Prohibition of Insider

(z) Commodity price risk or foreign exchange risk and hedging activities during the FY21.

134 Apollo Tyres Ltd Annual Report 2020-21 135

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Trading) Regulations, 2015, effective from May 15, shows serious malpractice or irregularity within act of sexual harassment results in the violation of (n) Integrated Reporting
2015. the Company and/or to report to the management the fundamental rights. Such acts violate the right to The Company being one of the top 500 Companies in the
instances of unethical behavior, actual or suspected, equality, right to life and to live with dignity and right Country in terms of market capitalization, has adopted
The Code of Conduct lays down guidelines advising
fraud or violation of Company’s Code of Conduct or to practice any profession or to carry on any occupation, Integrated Reporting describing initiatives undertaken
them on procedures to be followed and disclosures to
Ethics Policy. The Audit Committee of the Company trade or business, which also includes a right to have by the Company for enhancing stakeholders’ value
be made while dealing with the shares of the Company,
periodically reviews the functioning of whistle blower a safe and healthy work environment free from sexual in the long term. The report on Integrated Reporting
and cautioning them of consequences of violations. The
mechanism. harassment. is provided in a separate section forming part of this
Company Secretary of the Company is the Compliance
Annual Report.
Officer. In terms with the policy, an Internal Grievance Redressal In keeping with its belief and in terms of the Sexual
Committee (IC) has been constituted by the Company, Harassment of Women at Workplace (Prevention,
Pursuant to SEBI (Prohibition of Insider Trading) (o) Industrial Relations
which is headed by the Chairman of the Audit Committee Prohibition and Redressal) Act, 2013 and Rules thereof,
(Amendment) Regulations, 2018, which was effective  The Company maintained healthy, cordial and
of the Board. Company Secretary of the Company the Company adopts the policy to prevent and deal with
from April 1, 2019, the existing Code of Conduct to harmonious industrial relations at all levels. The
acts as an Ombudsman who, on receipt of complaint, sexual harassment at the workplace. The Company is
Regulate, Monitor and Report Trading by Insiders was enthusiasm and unstinting efforts of employees have
examines the possible intentions and genuineness of committed to provide to all employees who are present
amended to align with the SEBI (Prohibition of Insider enabled the Company to remain at the leadership
the disclosure in advance before referring it to the IC at the workplace, a work environment free from sexual
Trading) Amendment Regulations, 2018. position in the industry. It has taken various steps to
for investigations. The IC, after investigation, submits harassment, intimidation and exploitation.
improve productivity across organization.
The Company has put in place, all the systems and a report to the Audit Committee.
Status of the Complaint received relating to Sexual
procedures to ensure the compliances of Insider Trading
No personnel of the Company has been denied access harrassment during FY21:- (p) Dividend Distribution Policy
Regulations. The Company has an “Insider Trading Tool”
to the Audit Committee. The Company has formulated a Dividend Distribution
which acts as the structured digital database of the Particulars No. of Complaints
Policy in compliance of Regulations 43A of Listing
designated persons/ insiders. No complaint under whistle blower policy has been Number of complaints filed during Nil
the financial year Regulations which inter-alia specifies the external
received during FY21.
Number of complaints disposed off N.A. and internal factors including financial parameters
(g) Code of Conduct for Directors and Senior Management
during the financial year that shall be considered while declaring dividend
The Board of Directors of Apollo Tyres Ltd. has laid (i) Code of Practices and Procedures for Fair Disclosure
Number of complaints pending as N.A. and the circumstances under which the shareholders
down a code of business conduct called “The Code of The Board at its meeting held on May 12, 2015, has
on end of the financial year of the Company may or may not expect dividend.
Conduct for Directors and Senior Management”. The approved the Code of Practices and Procedures for Fair
Dividend Distribution Policy is available on the
Code envisages that Board of Directors and Senior Disclosure of Unpublished Price Sensitive Information,
(k) Familiarisation Programme for Independent Directors website of the Company (Refer link: https://
Management must act within the bounds of the in terms with the SEBI (Prohibition of Insider Trading)
The Company has adopted a familiarisation programme corporate.apollotyres.com/en-in/investors/corporate-
authority conferred upon them and with a duty to make Regulations, 2015, effective from May 15, 2015.
for Independent Directors with an objective of making governance/?filter=CodesPolicies ).
and keep themselves informed about the development
The Code lays down broad standards of compliance the Independent Directors of the Company accustomed
in the industry in which the Company is involved and the The dividend declared in last five years are as follows:
and ethics, as required by Listing Regulations and with the business and operations of the Company
legal requirements to be fulfilled.
other applicable SEBI regulations. The Code is required through various structured oriented programme. The Period Dividend (%)
The Code is applicable to all the Directors and Senior to be complied in respect of all corporate disclosures familiarisation programme also intends to update the FY21* 350
Management of the Company. The Company Secretary in respect of the Company and/or its Subsidiary Directors on a regular basis on any significant changes FY20 300
of the Company is the Compliance Officer. Companies, including Overseas Subsidiaries. therein so as to be in a position to take well informed FY19 325
and timely decision. FY18 300
The Company Secretary of the Company is the FY17 300
Declaration Affirming Compliance of provisions of the
Compliance Officer. The details of familiarisation programme imparted to FY16 200
Code of Conduct
Independent Directors during FY21 are available on
To the best of my knowledge and belief and on the Pursuant to SEBI (Prohibition of Insider Trading)
the website of the Company. The weblink is https:// * The Board of Directors at its meeting held on May 12, 2021
basis of declarations given to me, I hereby affirm that (Amendment) Regulations, 2018 which was effective had recommended a Dividend of ₹ 3.50/- (350%) per share of
staticcdn.apollotyres.com/CMSOriginal/3984/details-
all the Board members and the Senior Management from April 1, 2019, the existing Code of Practices and ₹ 1/- each on Equity Share Capital of the Company.
of-familiarisation-programme-fy21.pdf
Personnel have fully complied with the provisions of Procedures for Fair Disclosure of Unpublished Price
(q) Global Code of Conduct
the Code of Conduct for Directors and Senior Sensitive Information was amended to align with
(l) Succession Policy The Company has designed a global “Code of Conduct
Management Personnel during the financial year ended the SEBI (Prohibition of Insider Trading) Amendment
In terms with the Nomination & Remuneration Policy Policy” (“Code”) to conduct its business with honesty
March 31, 2021. Regulations, 2018. The Code of Practices and Procedures
of the Company, the Nomination & Remuneration and integrity and in compliance with all applicable legal
for Fair Disclosure of Unpublished Price Sensitive
ONKAR KANWAR Committee reviews the succession policy from time to and regulatory requirements. This Code sets out the
Information was approved/ratified by the Board on
Chairman & Managing Director time and assists the Board to ensure that the plans are fundamental standards to be followed by all employees
May 9, 2019.
in place for succession for appointments to the Board of the Company including Associates, Subsidiaries and
(h) Whistle Blower Policy/Vigil Mechanism The Board has also approved/ratified the Policy and and to Senior Management. Joint Ventures. The Company has rolled out mandatory
Apollo Tyres Ltd. believes in the conduct of its business Procedure for reporting and inquiry in case of leak online training of all the employees for successful
affair in a fair and transparent manner by adopting or suspected leak of unpublished price sensitive (m) Shareholders Satisfaction Survey implementation of the Code.
highest standards of professionalism, honesty, integrity information as per SEBI (Prohibition of Insider Trading) An online survey is posted on the Company’s
and ethical behavior. In order to inculcate accountability (Amendment) Regulations, 2018. website at https://s3.eu-central-1.amazonaws.com/ (r) Governance of Subsidiary Companies
and transparency in its business conduct, the Company apolloproduc t s/3985/shareholder-satisfac tion-  The Company has a well-established corporate
has been constantly reviewing its existing systems and (j) Policy to prevent and deal with sexual harassment survey.pdf. governance framework to create sound governance
procedures. Your Company has approved a Whistle The Company is an equal employment opportunity practices and promote best practices for its various
Shareholders who have not yet participated in the
Blower Policy which will enable all employees, Directors employer and is committed to creating a healthy and Subsidiaries in multiple jurisdictions across the
survey can go to the above link and take part in the
and other stakeholders to raise their genuine concerns productive work environment that enables employees world. The Company ensures that the governance of
survey and provide us their valuable feedback.
internally in a responsible and effective manner if and to work without fear of prejudice, gender bias and Subsidiaries especially the material Subsidiaries reflect
when they discover information which they believe sexual harassment. The Company believes that an

136 Apollo Tyres Ltd Annual Report 2020-21 137

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

ANNEXURE A
the same values, ethics, controls and processes as being (t) Declaration by Independent Directors under sub-
followed at the parent Company level. section (6) of Section 149 & Regulation 16(1)(b) of the
Listing Regulations
The Company maintains close relationship with the
Subsidiaries Board and regularly review and encourage
regular feedback on the operation of subsidiary
During FY21, the Company received declaration in
terms of the provisions of Section 149(6) & 149(7) of the
Certificate of Non-Disqualification of Directors
(Pursuant to Regulation 34(3) and Schedule V Para C clause (10) (i) of the SEBI (Listing Obligations and Disclosure Requirements)
governance framework. The Company follows a fair, Companies Act, 2013 and Regulation 16(1)(b) of Listing
Regulations, 2015)
transparent and ethical governance practices for its Regulations from the following Independent Directors
overseas Subsidiaries which is essential for achieving viz. Mr. Akshay Chudasama, Ms. Anjali Bansal, Gen.
long term corporate goals and to enhance stakeholder’s Bikram Singh (Retd.), Mr. Francesco Crispino, Ms. Pallavi
To,
value. Shroff, Mr. Vinod Rai and Mr. Vikram S. Mehta.
The Members of
APOLLO TYRES LIMITED.
(s) Personal Data Protection And Privacy Program (u) Name of the Debenture Trustee
3rd Floor, Areekal Mansion, Panampilly Nagar
We have analysed the regulations, their applicability Vistra ITCL (India) Limited
Kochi, Ernakulam, Kerala-682036
and impact on our organization and have a roadmap to The IL&FS Financial Centre,
ensure we address any gaps which require remediation Plot C- 22, G Block, 7th Floor
to ensure compliance. We have updated our policies and Bandra Kurla Complex
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of APOLLO TYRES
various processes to ensure compliance to the EU GDPR Bandra (East), Mumbai - 400 051
LIMITED. having CIN: L25111KL1972PLC002449 and having registered office at Apollo Tyres Limited 3rd Floor, Areekal Mansion,
requirements. Tel No. (022) 26533535
Panampilly Nagar, Kochi, Ernakulam, Kerala-682036 (hereinafter referred to as ‘the Company’), produced before us by the Company
Fax No. (022) 26533297
for the purpose of issuing this Certificate, in accordance with the Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of
the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
(v) Web link for various documents
The following documents/information are linked with the website of the Company, i.e. www.apollotyres.com:- In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN)
status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company and the respective
Particulars Web link
Directors, we hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ended on
Familiarization programme for https://corporate.apollotyres.com/en-in/investors/directors-information/?filter=Familiarisatio
Independent Directors nProgramme March 31, 2021 have been debarred or disqualified from being appointed or continuing as Directors of Companies by the Securities
Policy for determining ‘material’ https://corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=CodesPolicies and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.
subsidiaries
S. No. DIN Name of Director Date of appointment in Company
Policy on Related Party https://corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=CodesPolicies
1. 00010630 Akshaykumar Narendrasinhji Chudasama 11/11/2013
Transactions
2. 00013580 Pallavi Shardul Shroff 15/05/2014
CSR policy https://corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=CodesPolicies
3. 00041197 Vikram Singh Mehta 06/02/2013
Code of Conduct for Directors https://corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=CodesPolicies
4. 00041867 Vinod Rai 09/02/2016
and Senior Management
5. 00058859 Sunam Sarkar 28/01/2004
Whistle Blower Policy/Vigil https://corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=CodesPolicies
6. 00058921 Onkar Kanwar 03/06/1982
Mechanism
7. 00058951 Neeraj Singh Kanwar 28/05/1999
Policy on preservation and https://corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=CodesPolicies
archival of documents 8. 00178792 Robert Friedrich Johannes Adolf Steinmetz 10/09/1999
Policy on determination https://corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=CodesPolicies 9. 00207746 Anjali Bansal 01/11/2017
of materiality of events or 10. 00935998 Francesco Crispino 03/07/2020
information 11. 01035771 Vishal Kashyap Mahadevia 21/08/2020
Code of Practices and https://corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=CodesPolicies 12. 07259060 Bikram Singh 11/08/2015
Procedures for Fair Disclosure 13. 07413105 Francesco Gori 09/02/2016
of UPSI 14. 07527148 Satish Sharma 01/04/2019

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of
(w) Details of Utilisation of funds raised through CCPS
the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as
Particulars of the funds raised through CCPS (₹ million)
to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs
Deposits placed with Banks 10,800
of the Company.
(x) Certificate from Practicing Company Secretary
The Company has received a certificate from M/s. PI & Associates, Practicing Company Secretaries, confirming that none
For PI & Associates,
of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as
Company Secretaries
Directors of Companies by the Board/Ministry of Corporate Affairs or any such authority.

The Certificate is attached as Annexure A to the Corporate Governance Report.

Sd/-
Declaration Affirming Compliance of Whistle Blower Policy Ankit Singhi
Partner
To the best of my knowledge and belief, I hereby affirm that no personnel of the Company has been denied access to the
ACS No.: 20642
Audit committee during FY21.
C P No.: 16274
For and on behalf of the Board of Directors UDIN: A020642C000285489

ONKAR KANWAR Date : 12/05/2021

Place : London Chairman & Managing Director
Place : Noida
Date : May 12, 2021 DIN: 00058921

138 Apollo Tyres Ltd Annual Report 2020-21 139

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Independent Auditor’s Certificate on Corporate CEO and CFO Certificate

Governance [Under Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

To the Members of Apollo Tyres Limited

May 4, 2021
1. This certificate is issued in accordance with the terms of our engagement letter dated 22 July 2020.

2. We have examined the compliance of conditions of corporate governance by Apollo Tyres Limited (‘the Company’) for the year
The Board of Directors
ended on 31 March 2021, as stipulated in Regulations 17 to 27, clauses (b) to (i) of Regulation 46(2), and paragraphs C, D and
Apollo Tyres Ltd.
E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
No. 7, Apollo House,
2015 (‘Listing Regulations’).
Institutional Area, Sector- 32,
Gurgaon, Haryana -122001
MANAGEMENT’S RESPONSIBILITY

3. The compliance of conditions of corporate governance is the responsibility of the management. This responsibility includes the
designing, implementing and maintaining operating effectiveness of internal control to ensure compliance with the conditions We hereby certify that :-
of corporate governance as stipulated in the Listing Regulations.
a) We have reviewed the financial statements including the cash flow statement of the Company for the year ended as on March
31, 2021 and that to the best of our knowledge and belief :
AUDITOR’S RESPONSIBILITY
i these statements do not contain any materially untrue statement or omit any material fact or contain statements that
4. Pursuant to the requirements of the Listing Regulations, our responsibility is to express a reasonable assurance in the form of an
might be misleading;
opinion as to whether the Company has complied with the conditions of corporate governance as stated in paragraph 2 above.
Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring ii these statements including cash flow statement present a true and fair view of the Company’s affairs and are in compliance
the compliance with the conditions of corporate governance. It is neither an audit nor an expression of opinion on the financial with existing accounting standards, applicable laws and regulations.
statements of the Company.
b) To the best of our knowledge and belief, there are no transactions entered into by the Company during the year which are
5. We have examined the relevant records of the Company in accordance with the applicable Generally Accepted Auditing fraudulent, illegal or violative of the Company’s code of conduct.
Standards in India, the Guidance Note on Certification of Corporate Governance issued by the Institute of Chartered Accountants
c)  We accept the responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the
of India (‘ICAI’) , and Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which requires that we
effectiveness of internal control systems of the Company pertaining to financial reporting and have disclosed to the auditors.
comply with the ethical requirements of the Code of Ethics issued by the ICAI.
Further, no deficiencies have been observed in design or operation of such internal controls for the period covered by this report.
6. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control
d) During the period under review, no significant changes were observed in the internal controls over financial reporting and
for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services
accounting policies of the Company. Furthermore, no instance of fraud found by management or employees having a significant
Engagements
role in the company’s internal control system over financial reporting.

OPINION

7. Based on the procedures performed by us and to the best of our information and according to the explanations provided to us,
For Apollo Tyres Ltd
in our opinion, the Company has complied, in all material respects, with the conditions of corporate governance as stipulated
in the Listing Regulations during the year ended 31 March 2021.

We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness (Onkar Kanwar) (Gaurav Kumar)
with which the management has conducted the affairs of the Company. Chairman & Managing Director Chief Financial Officer

RESTRICTION ON USE

8. This certificate is issued solely for the purpose of complying with the aforesaid regulations and may not be suitable for any other
purpose.

For Walker Chandiok & Co LLP

Chartered Accountants
Firm's Registration No. 001076N/N500013

Sd/-
Neeraj Goel
Partner
Membership No. 099514
UDIN: 21099514AAAACS1870

Place : Gurugram
Date : 12 May 2021

140 Apollo Tyres Ltd Annual Report 2020-21 141

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Independent Auditor’s Report

Key audit matter How our audit procedures addressed the key audit matter
To the Members of Apollo Tyres Limited BASIS FOR OPINION
Our procedures included, but were not limited to, the following:
B. Litigations and claims: provisions and contingent
3.  e conducted our audit in accordance with the Standards
W
REPORT ON THE AUDIT OF THE STANDALONE liabilities a) 
Obtained an understanding from the management with
on Auditing specified under section 143(10) of the Act.
FINANCIAL STATEMENTS As included under Note C15 [contingent liability note] and Note respect to process and controls followed by the Company for
Our responsibilities under those standards are further C6 [Provision for contingencies note] to the standalone financial identification and monitoring of significant developments in
OPINION described in the Auditor’s Responsibilities for the Audit statements, the Company is involved in direct and indirect tax relation to the litigations, including completeness thereof;
of the Financial Statements section of our report. We are litigations (‘litigations’) amounting to ` 3,695.22 million that are
1.  e have audited the accompanying standalone financial
W b) 
Obtained the list of litigations from the management and
independent of the Company in accordance with the Code pending with various tax authorities.
statements of Apollo Tyres Limited (‘the Company’), which reviewed their assessment of the likelihood of outflow of
of Ethics issued by the Institute of Chartered Accountants Whether a liability is recognised or disclosed as a contingent economic resources being probable, possible or remote in respect
comprise the Balance Sheet as at 31 March 2021, the
of India (‘ICAI’) together with the ethical requirements that liability in the financial statements is inherently judgmental of the litigations. This involved assessing the probability of an
Statement of Profit and Loss (including Other Comprehensive
are relevant to our audit of the financial statements under and dependent on a number of significant assumptions and unfavorable outcome of a given proceeding and the reliability of
Income), the Cash Flow Statement and the Statement of assessments. These include assumptions relating to the likelihood estimates of related amounts;
the provisions of the Act and the rules thereunder, and we
Changes in Equity for the year then ended, and a summary and/or timing of the cash outflows from the business and the
have fulfilled our other ethical responsibilities in accordance c)  erformed substantive procedures including tracing from
P
of the significant accounting policies and other explanatory interpretation of local laws and pending assessments at various
with these requirements and the Code of Ethics. We believe underlying documents / communications from the tax authorities
information. levels of the statute. We placed specific focus on the judgements in
that the audit evidence we have obtained is sufficient and and re-computation of the amounts involved;
respect to these demands against the Company.
2. I n our opinion and to the best of our information and appropriate to provide a basis for our opinion. d) 
Assessed management’s conclusions through discussions held
Determining the amount, if any, to be recognised or disclosed
according to the explanations given to us, the aforesaid with their in house tax experts and understanding precedents in
in the standalone financial statements, is inherently subjective.
standalone financial statements give the information KEY AUDIT MATTERS similar cases;
The amounts involved are potentially significant and due to the
required by the Companies Act, 2013 (‘Act’) in the manner range of possible outcomes and considerable uncertainty around e)  btained and evaluated the independent confirmations from
O
4.  ey audit matters are those matters that, in our professional
K
so required and give a true and fair view in conformity the various claims the determination of the need for creating a the consultants representing the Company before the various
judgment, were of most significance in our audit of the
with the accounting principles generally accepted in India provision in the financial statements is inherently subjective and authorities;
standalone financial statements of the current period. These
including Indian Accounting Standards (‘Ind AS’) specified therefore is considered to be a key audit matter in the current year
matters were addressed in the context of our audit of the f) Engaged auditor’s experts, who obtained an understanding of
under section 133 of the Act, of the state of affairs of the the current status of the litigations, conducted discussions with
financial statements as a whole, and in forming our opinion
Company as at 31 March 2021, and its profit (including the management, reviewed independent legal advice received
thereon, and we do not provide a separate opinion on these
other comprehensive income), its cash flows and the changes by the Company, if any and considered relevant legal provisions
matters.
in equity for the year ended on that date. and available precedents to validate the conclusions made by the
management; and

g) Assessed and validated the adequacy and appropriateness of the

5. We have determined the matters described below to be the key audit matters to be communicated in our report.
disclosures made by the management in the standalone financial
Key audit matter How our audit procedures addressed the key audit matter statements.
A. Provision for sales related obligations Our audit procedures included, but were not limited to the following:
As at 31 March 2021, the Company carries provisions for sales INFORMATION OTHER THAN THE FINANCIAL  ESPONSIBILITIES OF MANAGEMENT AND THOSE
R
a) Obtained an understanding from the management with respect
related obligations amounting to ` 1,411.91 million (Refer note C6). STATEMENTS AND AUDITOR’S REPORT THEREON CHARGED WITH GOVERNANCE FOR THE STANDALONE
to process and controls followed by the Company to ensure
Such provision is recognised based on past trends, frequency, appropriateness of recognition, measurement and completeness FINANCIAL STATEMENTS
6. T he Company’s Board of Directors is responsible for the
expected cost of obligations, management estimates regarding of the sales related obligations;
possible future incidences and appropriate discount rates for non-
other information. The other information comprises the 7.  he accompanying standalone financial statements have
T
b) 
Tested the management’s computation of sales related information included in the Management Discussion and been approved by the Company’s Board of Directors. The
current portion of the obligations.
obligations by evaluating the reasonability of the key Analysis, Report on Corporate Governance and Director’s Company’s Board of Directors is responsible for the matters
These estimates require high degree of management judgement assumptions, reviewing the contractual terms, comparing the
Report, but does not include the standalone financial stated in section 134(5) of the Act with respect to the
with respect to the underlying assumptions, thus giving rise to assumptions to historical data and analysing the expected costs
inherent subjectivity in determining the amounts to be recorded in of incidences; statements and our auditor’s report thereon. preparation of these standalone financial statements that
the financial statements. give a true and fair view of the financial position, financial
c)  raced the inputs used in the computations, to the relevant
T Our opinion on the standalone financial statements does not
performance including other comprehensive income, changes
Considering the materiality of the above matter to the financial accounting records, including discussions with the relevant cover the other information and we do not express any form
in equity and cash flows of the Company in accordance
statements, complexities and judgement involved, and the management personnel and tested the arithmetical accuracy of of assurance conclusion thereon.
significant auditor attention required to test such management’s the computation; with the accounting principles generally accepted in India,
judgement, we have identified this as a key audit matter for current I n connection with our audit of the standalone financial including the Ind AS specified under section 133 of the Act.
d)  ompared the amounts recognized as provision in the past years
C
year audit. statements, our responsibility is to read the other This responsibility also includes maintenance of adequate
with the corresponding settlements and assessed whether the
information and, in doing so, consider whether the other accounting records in accordance with the provisions of the
aggregate provisions recognized as at the current year-end were
sufficient to cover expected costs in light of known and expected information is materially inconsistent with the standalone Act for safeguarding of the assets of the Company and for
incidences; financial statements or our knowledge obtained in the audit preventing and detecting frauds and other irregularities;
or otherwise appears to be materially misstated. If, based selection and application of appropriate accounting policies;
e)  erformed sensitivity analysis on the management’s computation
P
by evaluating the impact of change on the obligation by changing
on the work we have performed, we conclude that there is making judgments and estimates that are reasonable and
certain key assumptions such as discount rates used; and a material misstatement of this other information, we are prudent; and design, implementation and maintenance of
required to report that fact. We have nothing to report in adequate internal financial controls, that were operating
f) Assessed and validated the adequacy and appropriateness of
this regard. effectively for ensuring the accuracy and completeness of
the disclosures made by the management in the standalone
financial statements. the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and
fair view and are free from material misstatement, whether
due to fraud or error.

142 Apollo Tyres Ltd Annual Report 2020-21 143

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

8. I n preparing the financial statements, management is uncertainty exists related to events or conditions that 17. F
 urther to our comments in Annexure I, as required by i. t he Company, as detailed in note C15 to the
responsible for assessing the Company’s ability to continue may cast significant doubt on the Company’s ability to section 143(3) of the Act, based on our audit, we report, to standalone financial statements, has disclosed
as a going concern, disclosing, as applicable, matters related continue as a going concern. If we conclude that a material the extent applicable, that: the impact of pending litigations on its financial
to going concern and using the going concern basis of uncertainty exists, we are required to draw attention position as at 31 March 2021;
a)  e have sought and obtained all the information and
w
accounting unless management either intends to liquidate in our auditor’s report to the related disclosures in the
explanations which to the best of our knowledge and ii. t he Company has made provision, as required
the Company or to cease operations, or has no realistic financial statements or, if such disclosures are inadequate,
belief were necessary for the purpose of our audit of the under the applicable law or Ind AS, for material
alternative but to do so. to modify our opinion. Our conclusions are based on the
accompanying standalone financial statements; foreseeable losses, if any, on long-term contracts
audit evidence obtained up to the date of our auditor’s
9. Those Board of Directors is also responsible for overseeing including derivative contracts;
report. However, future events or conditions may cause b) i n our opinion, proper books of account as required by
the Company’s financial reporting process.
the Company to cease to continue as a going concern; law have been kept by the Company so far as it appears iii. t here has been no delay in transferring amounts,
from our examination of those books; required to be transferred, to the Investor Education
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE • Evaluate the overall presentation, structure and content
and Protection Fund by the Company other than
FINANCIAL STATEMENTS of the financial statements, including the disclosures, and c) the standalone financial statements dealt with by this
INR 4.86 million (31 March 2020: INR 4.30 million)
whether the financial statements represent the underlying report are in agreement with the books of account;
10. O
 ur objectives are to obtain reasonable assurance about pertaining to amount of dividend which has not
transactions and events in a manner that achieves fair
whether the financial statements as a whole are free from d) in our opinion, the aforesaid standalone financial been transferred as per the orders/ instructions
presentation;
material misstatement, whether due to fraud or error, statements comply with Ind AS specified under section dated 14 June 2001 of the Special Court (Trial of
and to issue an auditor’s report that includes our opinion. 133 of the Act; Offences Relating to Transactions in Securities)
12. W
 e communicate with those charged with governance
Reasonable assurance is a high level of assurance, but is Act, 1992; and
regarding, among other matters, the planned scope and e) on the basis of the written representations received
not a guarantee that an audit conducted in accordance
timing of the audit and significant audit findings, including from the directors and taken on record by the Board of iv. t he disclosure requirements relating to holdings
with Standards on Auditing will always detect a material
any significant deficiencies in internal control that we Directors, none of the directors is disqualified as on 31 as well as dealings in specified bank notes were
misstatement when it exists. Misstatements can arise from
identify during our audit. March 2021 from being appointed as a director in terms applicable for the period from 8 November 2016 to
fraud or error and are considered material if, individually
of section 164(2) of the Act; 30 December 2016, which are not relevant to these
or in the aggregate, they could reasonably be expected to 13. W
 e also provide those charged with governance with a
standalone financial statements. Hence, reporting
influence the economic decisions of users taken on the basis statement that we have complied with relevant ethical f)  e have also audited the internal financial controls with
w
under this clause is not applicable.
of these financial statements. requirements regarding independence, and to communicate reference to financial statements of the Company as
with them all relationships and other matters that may on 31 March 2021 in conjunction with our audit of the
11. A
 s part of an audit in accordance with Standards on For Walker Chandiok & Co LLP
reasonably be thought to bear on our independence, and standalone financial statements of the Company for the
Auditing, we exercise professional judgment and maintain Chartered Accountants
where applicable, related safeguards. year ended on that date and our report dated 12 May
professional skepticism throughout the audit. We also: Firm’s Registration No.: 001076N/N500013
2021 as per Annexure II expressed unmodified opinion; and
14. F
 rom the matters communicated with those charged with
• Identify and assess the risks of material misstatement governance, we determine those matters that were of most g) with respect to the other matters to be included in Neeraj Goel
of the financial statements, whether due to fraud or significance in the audit of the financial statements of the the Auditor’s Report in accordance with rule 11 of the Partner
error, design and perform audit procedures responsive to current period and are therefore the key audit matters. We Companies (Audit and Auditors) Rules, 2014 (as amended), Membership No.: 99514
those risks, and obtain audit evidence that is sufficient describe these matters in our auditor’s report unless law or in our opinion and to the best of our information and UDIN: 21099514AAAACX6007
and appropriate to provide a basis for our opinion. The regulation precludes public disclosure about the matter or according to the explanations given to us:
risk of not detecting a material misstatement resulting when, in extremely rare circumstances, we determine that Place: Gurugram
from fraud is higher than for one resulting from error, as a matter should not be communicated in our report because Date: 12 May 2021
fraud may involve collusion, forgery, intentional omissions, the adverse consequences of doing so would reasonably be
misrepresentations, or the override of internal control; expected to outweigh the public interest benefits of such
communication.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
REPORT ON OTHER LEGAL AND REGULATORY
appropriate in the circumstances. Under section 143(3)
REQUIREMENTS
(i) of the Act, we are also responsible for expressing our
opinion on whether the Company has adequate internal 15. As
 required by section 197(16) of the Act, based on our
financial controls with reference to financial statements audit, we report that the Company has paid and provided
in place and the operating effectiveness of such controls; remuneration to its directors during the year in accordance
with the provisions of and limits laid down under section 197
• Evaluate the appropriateness of accounting policies used
read with Schedule V to the Act.
and the reasonableness of accounting estimates and
related disclosures made by management; 16. A
 s required by the Companies (Auditor’s Report) Order, 2016
(‘the Order’) issued by the Central Government of India in
• Conclude on the appropriateness of management’s use
terms of section 143(11) of the Act, we give in the Annexure
of the going concern basis of accounting and, based
I a statement on the matters specified in paragraphs 3 and
on the audit evidence obtained, whether a material
4 of the Order.

144 Apollo Tyres Ltd Annual Report 2020-21 145

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Annexure I
Based on the audit procedures performed for the purpose of (ii) In our opinion, the management has conducted physical (viii) The Company has not defaulted in repayment of loans or (xiv) D
 uring the year, the Company has made preferential
reporting a true and fair view on the financial statements of the verification of inventory at reasonable intervals during borrowings to any financial institution or a bank or any dues allotment of shares. In respect of the same, in our opinion,
Company and taking into consideration the information and the year and no material discrepancies between physical to debenture-holders during the year. The Company has no the Company has complied with the requirement of Section
explanations given to us and the books of account and other inventory and book records were noticed on physical loans or borrowings payable to government. 42 of the Act and the Rules framed thereunder. Further,
records examined by us in the normal course of audit, and to the verification. in our opinion, the amounts so raised were applied for the
(ix) T
 he Company did not raise moneys by way of initial public
best of our knowledge and belief, we report that: purposes for which these securities were issued, though idle
(iii) The Company has not granted any loan, secured or unsecured offer or further public offer (including debt instruments). In
funds which were not required for immediate utilisation have
(i) (a) The Company has maintained proper records showing to companies, firms, Limited Liability Partnerships (LLPs) our opinion, the term loans were applied for the purposes for
been invested in liquid investments, payable on demand.
full particulars, including quantitative details and or other parties covered in the register maintained under which the loans were obtained, though idle/surplus funds
During the year, the company did not make preferential
situation of property, plant and equipment’s (including Section 189 of the Act. Accordingly, the provisions of clauses which were not required for immediate utilisation have been
allotment or private placement of fully or partly convertible
right-of –use assets). 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are not applicable. invested in liquid investments, payable on demand.
debentures.
(b) T he Company has a regular program of physical (iv) I n our opinion, the Company has complied with the provisions (x) No fraud by the Company or on the Company by its officers
(xv) I n our opinion, the Company has not entered into any non-
verification of its property, plant and equipment’s of Sections 185 and 186 of the Act in respect of investments or employees has been noticed or reported during the
cash transactions with the directors or persons connected
(including right-of-use assets) under which property, and guarantees. There are no loans and security given by the period covered by our audit.
with them covered under Section 192 of the Act.
plant and equipment’s (including right-of-use assets) Company.
(xi) M
 anagerial remuneration has been paid and provided for
are verified in a phased manner over a period of three (xvi) The Company is not required to be registered under Section
(v) I n our opinion, the Company has not accepted any deposits by the Company in accordance with the requisite approvals
years, which, in our opinion, is reasonable having regard 45-IA of the Reserve Bank of India Act, 1934.
within the meaning of Sections 73 to 76 of the Act and mandated by the provisions of Section 197 of the Act read
to the size of the Company and the nature of its assets.
the Companies (Acceptance of Deposits) Rules, 2014 (as with Schedule V to the Act.
In accordance with this program, certain property, plant For Walker Chandiok & Co LLP
amended). Accordingly, the provisions of clause 3(v) of the
and equipment’s (including right-of-use assets) were (xii) I n our opinion, the Company is not a Nidhi Company. Chartered Accountants
Order are not applicable.
verified during the year and no material discrepancies Accordingly, provisions of clause 3(xii) of the Order are not Firm’s Registration No.: 001076N/N500013
were noticed on such verification. (vi) W
 e have broadly reviewed the books of account maintained applicable.
by the Company pursuant to the Rules made by the Central Neeraj Goel
(c) T
 he title deeds of all the immovable properties are held (xiii) In our opinion all transactions with the related parties are
Government for the maintenance of cost records under Partner
in the name of the Company, except for certain lands in compliance with Sections 177 and 188 of Act, where
sub-section (1) of Section 148 of the Act in respect of Membership No.: 99514
included under the head ‘Capital work in progress’, applicable, and the requisite details have been disclosed in
Company’s products and are of the opinion that, prima UDIN: 21099514AAAACX6007
{admeasuring 8,836,150 square feet and carrying a cost the financial statements etc., as required by the applicable
facie, the prescribed accounts and records have been made
of ` 297.70 million}, the title deeds to which, according to Ind AS.
and maintained. However, we have not made a detailed Place: Gurugram
the information and explanation given to us, are yet to
examination of the cost records with a view to determine Date: 12 May 2021
be transferred in the name of the Company as explained
whether they are accurate or complete.
in Note B1 to the financial statements. Immovable
properties in the nature of land whose title deeds have (vii) (a) U
 ndisputed statutory dues including provident fund,
been pledged as security for loans are held in the name employees’ state insurance, income-tax, sales-tax,
of the Company, which is verified from confirmations service tax, duty of customs, duty of excise, value
directly received by us from lenders. In respect of added tax, cess and other material statutory dues, as
immovable properties in the nature of land and building applicable, have generally been regularly deposited
that have been taken on lease and disclosed under the to the appropriate authorities, though there has been
head right-of-use assets in the standalone financial a slight delay in a few cases. Further, no undisputed
statements, the lease agreements are in the name of amounts payable in respect thereof were outstanding
the Company, where the Company is the lessee as per at the year-end for a period of more than six months
the agreements. from the date they became payable.

(b) T
 he dues outstanding in respect of income-tax, sales-tax, service-tax, duty of customs, duty of excise and value added tax
on account of any dispute, are as follows:

Statement of Disputed Dues

Amount paid
Amount Period to which the
Name of the statute Nature of dues under Protest Forum where dispute is pending
(` million) amount relates
(` million)

Sales Tax Act applicable to Sales tax 203.51 85.14 1992-93 to 2020-21 Various appellate authorities/
various states Revenue board/ High Court
Central Excise Act, 1944/ Excise duty, Custom 578.16 19.22 2002-03 to 2017-18 Various appellate authorities/
Customs Act, 1962 duty and additional Supreme Court
excise duty
Finance Act, 1994 Service tax 545.39 37.63 2004-05 to 2017-18 Various appellate authorities
Income-tax Act, 1961 Income tax 2,510.16 232.10 1990-91 to 2015-16 Various appellate authorities/
High Court

146 Apollo Tyres Ltd Annual Report 2020-21 147

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Annexure II
Independent Auditor’s Report on the internal financial controls with reference to the standalone financial statements under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

1. I n conjunction with our audit of the standalone financial 4.  ur audit involves performing procedures to obtain audit
O INHERENT LIMITATIONS OF INTERNAL FINANCIAL OPINION
statements of Apollo Tyres Limited (‘the Company’) as at evidence about the adequacy of the internal financial controls CONTROLS WITH REFERENCE TO FINANCIAL
8. I n our opinion, the Company has, in all material respects,
and for the year ended 31 March 2021, we have audited with reference to financial statements and their operating STATEMENTS
adequate internal financial controls with reference to
the internal financial controls with reference to financial effectiveness. Our audit of internal financial controls with
7.  ecause of the inherent limitations of internal financial
B financial statements and such controls were operating
statements of the Company as at that date. reference to financial statements includes obtaining an
controls with reference to financial statements, including effectively as at 31 March 2021, based on the internal
understanding of such internal financial controls, assessing
the possibility of collusion or improper management override financial controls with reference to financial statements
RESPONSIBILITIES OF MANAGEMENT AND THOSE the risk that a material weakness exists, and testing and
of controls, material misstatements due to error or fraud criteria established by the Company considering the
CHARGED WITH GOVERNANCE FOR INTERNAL evaluating the design and operating effectiveness of
may occur and not be detected. Also, projections of any essential components of internal control stated in the
FINANCIAL CONTROLS internal control based on the assessed risk. The procedures
evaluation of the internal financial controls with reference Guidance Note issued by the ICAI.
selected depend on the auditor’s judgement, including the
2. T he Company’s Board of Directors is responsible for to financial statements to future periods are subject to the
assessment of the risks of material misstatement of the
establishing and maintaining internal financial controls risk that the internal financial controls with reference to For Walker Chandiok & Co LLP
financial statements, whether due to fraud or error.
based on the internal financial controls with reference to financial statements may become inadequate because of Chartered Accountants
financial statements criteria established by the Company 5. We believe that the audit evidence we have obtained is changes in conditions, or that the degree of compliance with Firm’s Registration No.: 001076N/N500013
considering the essential components of internal control sufficient and appropriate to provide a basis for our audit the policies or procedures may deteriorate.
stated in the Guidance Note on Audit of Internal Financial opinion on the Company’s internal financial controls with Neeraj Goel
Controls over Financial Reporting (‘ the Guidance Note’) reference to financial statements. Partner
issued by the Institute of Chartered Accountants of Membership No.: 99514
India (‘ICAI’). These responsibilities include the design, MEANING OF INTERNAL FINANCIAL CONTROLS WITH UDIN: 21099514AAAACX6007
implementation and maintenance of adequate internal REFERENCE TO FINANCIAL STATEMENTS
financial controls that were operating effectively for Place: Gurugram
6.  company's internal financial controls with reference
A
ensuring the orderly and efficient conduct of the Company’s Date: 12 May 2021
to financial statements is a process designed to provide
business, including adherence to the Company’s policies, the
reasonable assurance regarding the reliability of financial
safeguarding of its assets, the prevention and detection of
reporting and the preparation of financial statements for
frauds and errors, the accuracy and completeness of the
external purposes in accordance with generally accepted
accounting records, and the timely preparation of reliable
accounting principles. A company's internal financial
financial information, as required under the Act.
controls with reference to financial statements include those
policies and procedures that (1) pertain to the maintenance
AUDITOR’S RESPONSIBILITY FOR THE AUDIT OF THE
of records that, in reasonable detail, accurately and fairly
INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO
reflect the transactions and dispositions of the assets of the
FINANCIAL STATEMENTS
company; (2) provide reasonable assurance that transactions
3. Our responsibility is to express an opinion on the Company's are recorded as necessary to permit preparation of financial
internal financial controls with reference to financial statements in accordance with generally accepted
statements based on our audit. We conducted our audit in accounting principles, and that receipts and expenditures
accordance with the Standards on Auditing issued by the of the company are being made only in accordance with
ICAI prescribed under Section 143(10) of the Act, to the authorisations of management and directors of the
extent applicable to an audit of internal financial controls company; and (3) provide reasonable assurance regarding
with reference to financial statements, and the Guidance prevention or timely detection of unauthorised acquisition,
Note issued by the ICAI. Those Standards and the Guidance use, or disposition of the company's assets that could have
Note require that we comply with ethical requirements and a material effect on the financial statements.
plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls with
reference to financial statements were established and
maintained and if such controls operated effectively in all
material respects.

148 Apollo Tyres Ltd Annual Report 2020-21 149

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Balance Sheet Statement of Profit and Loss

as on March 31, 2021 for the year ended March 31, 2021

` Million ` Million
As on As on Year ended Year ended
Notes Notes
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
A. ASSETS 1. REVENUE FROM OPERATIONS:
1. Non-current assets Sales 113,545.12 108,326.97
(a) Property, plant and equipment B1 96,720.48 86,321.83 Other operating income B23 3,788.89 2,356.21
(b) Capital work-in-progress 10,299.55 12,720.71
117,334.01 110,683.18
(c) Right of use assets C5 5,244.92 6,209.73
2. OTHER INCOME B24 1,215.23 286.08
(d) Intangible assets B1 375.95 320.36
(e) Financial assets 3. TOTAL INCOME (1 +2) 118,549.24 110,969.26
i. Investments B2 24,097.21 24,095.19 4. EXPENSES :
ii. Other financial assets B3 3,688.30 2,326.12 (a) Cost of materials consumed B25 62,383.17 60,729.50
(f) Other non-current assets B4 2,232.35 3,650.49 (b) Purchase of stock-in-trade B25 6,948.31 6,517.26
Total non-current assets 142,658.76 135,644.43 (c) Changes in inventories of finished goods, stock-in-trade and work-in- B26 69.15 1,128.28
2. Current assets progress
(a) Inventories B5 20,766.00 18,082.51
(d) Employee benefits expense B25 9,109.01 8,261.17
(b) Financial assets
(e) Finance costs B27 3,794.14 2,256.96
i. Investments B6 900.68 -
ii. Trade receivables B7 7,320.36 4,450.83 (f) Depreciation and amortisation expense B1 7,133.77 6,207.05
iii. Cash and cash equivalents B8 2,258.12 2,256.26 (g) Other expenses B25 18,481.14 20,055.19
iv. Bank balances other than (iii) above B9 11,744.38 109.58 Total expenses 107,918.69 105,155.41
v. Other financial assets B10 2,896.99 747.36 5. PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (3 - 4) 10,630.55 5,813.85
(c) Other current assets B11 3,089.19 3,528.92 6. EXCEPTIONAL ITEMS C28 110.16 -
Total current assets 48,975.72 29,175.46
7. PROFIT BEFORE TAX (5 - 6) 10,520.39 5,813.85
TOTAL ASSETS (1+2) 191,634.48 164,819.89
8. TAX EXPENSE:
B. EQUITY AND LIABILITIES
1. Equity (a) Current tax 1,904.39 1,026.56
(a) Share capital B12 635.10 572.05 (b) Deferred tax C7(ii) 1,387.79 (298.95)
(b) Other equity 94,090.51 76,349.42 Total 3,292.18 727.61
Total equity 94,725.61 76,921.47 9. NET PROFIT FOR THE YEAR (7 - 8) 7,228.21 5,086.24
Liabilities 10. OTHER COMPREHENSIVE INCOME
2. Non-current liabilities I i. Items that will not be reclassified to profit or loss
(a) Financial liabilities a. Remeasurements of the defined benefit plans 69.68 (245.40)
i. Borrowings B13 36,604.31 32,083.24
b. Income tax (24.35) 85.75
ii. Other financial liabilities B14 4,682.32 5,319.45
(b) Provisions B15 494.75 503.32 45.33 (159.65)
(c) Deferred tax liabilities (net) C7(ii) 6,733.74 5,312.69 II i. Items that may be reclassified to profit or loss
(d) Other non-current liabilities B16 5,104.79 3,754.95 a. Effective portion of (loss) on designated portion of hedging 25.51 (163.71)
Total non-current liabilities 53,619.91 46,973.65 instruments in a cash flow hedge
3. Current Liabilities b. Income tax (8.91) 57.21
(a) Financial liabilities 16.60 (106.50)
i. Borrowings B17 1,004.85 11,180.69 Other comprehensive profit/ (loss) (I + II) 61.93 (266.15)
ii. Trade payables
Total comprehensive income for the year (9 + 10) 7,290.14 4,820.09
- Total outstanding dues of micro enterprises and small enterprises 629.03 170.80
- Total outstanding dues of creditors other than micro enterprises and B18 18,663.55 15,936.37 Earnings per share (of Re 1 each) C30
small enterprises (a) Basic (`) 11.72 8.89
iii. Other financial liabilities B19 18,168.87 10,182.59 (b) Diluted (`) 11.72 8.89
(b) Other current liabilities B20 2,191.42 1,092.90
(c) Provisions B21 1,923.37 1,801.91
(d) Current tax liabilities (net) B22 707.87 559.51 See accompanying notes forming part of the financial statements
Total current liabilities 43,288.96 40,924.77 In terms of our report attached For and on behalf of the Board of Directors
TOTAL EQUITY AND LIABILITIES (1+2+3) 191,634.48 164,819.89 For Walker Chandiok & Co LLP
Chartered Accountants
See accompanying notes forming part of the financial statements Firm’s Registration No. 001076N/N500013 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
In terms of our report attached For and on behalf of the Board of Directors Chairman & Managing Director Vice Chairman & Managing Director Director
For Walker Chandiok & Co LLP Neeraj Goel DIN 00058921 DIN 00058951 DIN 00041867
Chartered Accountants Partner
Firm’s Registration No. 001076N/N500013 ONKAR KANWAR NEERAJ KANWAR VINOD RAI Membership No. 99514 GAURAV KUMAR SEEMA THAPAR
Chairman & Managing Director Vice Chairman & Managing Director Director Chief Financial Officer Company Secretary
Neeraj Goel DIN 00058921 DIN 00058951 DIN 00041867 Gurugram London Membership No - FCS 6690
Partner May 12, 2021 May 12, 2021
Membership No. 99514 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Gurugram London Membership No - FCS 6690
May 12, 2021 May 12, 2021

150 Apollo Tyres Ltd Annual Report 2020-21 151

152
Statement of Changes in Equity
for the year ended March 31, 2021
OTHER EQUITY
` Million
Items of other
Reserves and surplus
comprehensive income
Capital Capital Effective
Particulars Debenture Capital Total
Securities General reserve on Capital reserve on Retained portion of Revaluation
redemption redemption
premium reserve AMHPL subsidy forefeiture of earnings cash flow surplus
reserve reserve
merger shares hedge
Balance as on March 31, 2019 20,866.72 14,006.63 1,383.68 1,039.50 25.50 44.40 0.07 38,449.25 (7.41) 31.22 75,839.56
Profit for the year - - - - - - - 5,086.24 - - 5,086.24
Effective portion of cash flow hedge - - - - - - - - (163.71) - (163.71)
Income tax on effective portion of cash flow - - - - - - - - 57.21 - 57.21
hedge
Remeasurements of the defined benefit plans - - - - - - - (245.40) - - (245.40)
Income tax on Remeasurements of the defined - - - - - - - 85.75 - - 85.75
benefit plans
Total comprehensive income for the year - - - - - - - 4,926.59 (106.50) - 4,820.09
Payment of dividend (` 3.25 per share) - - - - - - - (1,859.16) - - (1,859.16)
Payment of interim dividend (` 3.00 per share) - - - - - - - (1,716.15) - - (1,716.15)
Tax on dividend - - - - - - - (734.92) - - (734.92)
Transfer from retained earnings - 1,000.00 - - - - - (1,000.00) - - -
Balance as on March 31, 2020 20,866.72 15,006.63 1,383.68 1,039.50 25.50 44.40 0.07 38,065.61 (113.91) 31.22 76,349.42
Profit for the year - - - - - - - 7,228.21 - - 7,228.21
Effective portion of cash flow hedge - - - - - - - - 25.51 - 25.51
Income tax on effective portion of cash flow hedge - - - - - - - - (8.91) - (8.91)
Remeasurements of the defined benefit plans - - - - - - - 69.68 - - 69.68
Factsheet
Corporate

Income tax on Remeasurements of the defined - - - - - - - (24.35) - - (24.35)

benefit plans
Total comprehensive income for the year - - - - - - - 7,273.54 16.60 - 7,290.14
Share premium on issue of shares, 10,450.95 - - - - - - - - - 10,450.95
net (refer note C27)
Transfer from retained earnings - 1,000.00 - - - - - (1,000.00) - - -
Balance as on March 31, 2021 31,317.67 16,006.63 1,383.68 1,039.50 25.50 44.40 0.07 44,339.15 (97.31) 31.22 94,090.51

In terms of our report attached For and on behalf of the Board of Directors
From our

For Walker Chandiok & Co LLP

Leadership

Chartered Accountants
Firm's Registration No. 001076N/N500013

ONKAR KANWAR NEERAJ KANWAR VINOD RAI

Chairman & Managing Director Vice Chairman & Managing Director Director
Neeraj Goel DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 99514 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Apollo Tyres

Gurugram London Membership No - FCS 6690

Value Creation at

May 12, 2021 May 12, 2021

Apollo Tyres Ltd

B
A
(i)

(ii)
Our ESG
Performance

liabilities:
Inventories
Finance cost

Trade payables
Interest income

Interest received
Profit before tax

Trade receivables

Annual Report 2020-21

Add: Adjustments for:

Other current assets

Other financial liabilities

Investments in mutual funds

Unwinding of deferred income

Changes in working capital

Less: Direct taxes paid (net of refund)

Investments in fixed deposits, net

(iii) Cash generated from operations

Non-current investment made, net

Provisions (current and non-current)
for the year ended March 31, 2021

Net cash used in investing activities

Management

Depreciation and amortisation expenses

Other liabilities (current and non current)

Discussion & Analysis

Purchase of property, plant and equipment

CASH FLOW FROM INVESTING ACTIVITIES
CASH FLOW FROM OPERATING ACTIVITIES

Net cash generated from operating activities

Cash Flow Statement

Other financial assets (current and non current)

Operating profit before working capital changes
Dividend from non-current and current investments

Proceeds from sale of property, plant and equipment

(Profit) on sale of property, plant and equipment (net)

Unrealised (gain)/ loss on foreign exchange fluctuations

Adjustments for increase / (decrease) in operating

Dividends received from current and non-current investments

Reports
Statutory

Adjustments for (increase) / decrease in operating assets:

662.46
2.88
105.93
112.89
1,051.99
2,186.59
3,363.49
482.16
3,794.14
7,133.77

(11,650.00)
(1.24)
(900.00)
(9,825.83)
(3,809.44)
(2,872.41)
(2,683.49)
(175.19)
(816.20)
(1,572.57)
(2.88)
(20.34)
Financial
Statements

March 31, 2021

Year ended

14,936.87
1,756.03
16,692.90
6,714.96
18,861.12
8,340.73
10,520.39

(8,883.18)

(21,605.80)
162.89
2.67
-
-
192.87
146.62
1,285.87
2,090.54
3,420.61
2,432.28
253.54
2,256.96
6,207.05

(1,769.46)
(25,340.32)
(1,670.37)
(8.23)
(227.50)
(38.01)
(1,735.41)
(2.67)
(0.32)
March 31, 2020
Year ended
` Million

18,953.74
1,271.07
20,224.81
1,852.66
5,617.16
12,754.99
6,941.14
5,813.85

(26,751.35)

153
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Cash Flow Statement A. Notes

for the year ended March 31, 2021 forming Part of the Financial Statements

` Million
1 CORPORATE INFORMATION Statement of profit and loss:
Year ended Year ended
March 31, 2021 March 31, 2020 • Additional disclosures relating to Corporate Social
The principal business activity of Apollo Tyres Limited (‘the
C CASH FLOW FROM FINANCING ACTIVITIES Responsibility (CSR), undisclosed income and crypto
Company’) is manufacturing and sale of automotive tyres.
Proceeds from issue of compulsory convertible preference shares 10,800.00 - or virtual currency specified under the head ‘additional
The Company started its operations in 1972 with its first
Proceeds from non-current borrowings 10,750.00 7,318.75 information’ in the notes forming part of the financial
manufacturing plant at Perambra in Kerala.
(Repayment) of non-current borrowings (589.04) (166.85) statements
Proceeds from/ (Repayment) of current borrowings (net) (10,180.00) 8,378.10 The Company’s largest operations are in India and
 he amendments are extensive and the Company will
T
Payment of dividend (including dividend tax) - (4,310.23) comprises five tyre manufacturing plants, two located in
evaluate the same to give effect to them as required by law.
Payment of lease liabilities (1,269.98) (1,358.86) Cochin and one each at Vadodara, Chennai and Andhra
Finance charges paid (2,844.34) (1,788.36) Pradesh and various sales and marketing offices spread
6,666.64 8,072.55
2.2 Amended standards adopted by the Company
Net cash generated from financing activities across the country. The Company’s European subsidiaries
The company has applied the following standards and
Net (decrease) / increase in cash and cash equivalents (2.29) 274.94 Apollo Vredestein BV (‘AVBV’) and Apollo Tyres (Hungary)
amendments for the first time for their annual reporting
Cash and cash equivalents as at the beginning of the year 2,256.26 2,103.80 Kft. have a manufacturing plant in the Netherlands
period commencing 1 April 2020:
Less: Cash credits as at the beginning of the year 0.69 123.17 and Hungary respectively and has sales and marketing
Adjusted cash and cash equivalents as at beginning of the year 2,255.57 1,980.63 subsidiaries all over Europe. The Company also has sales • Definition of material - amendments to Ind AS 1 and Ind
Cash and cash equivalents as at the end of the year 2,258.12 2,256.26 and marketing subsidiaries in Middle East, Africa and AS 8
Less: Cash credits as at the end of the year 4.85 0.69 ASEAN region.
2,253.27 2,255.57 • Covid-19 related concessions - amendments to Ind AS
(Gain)/loss on re-statement of foreign currency cash and cash 0.01 - 116
2.1 Recent accounting prouncements
equivalents
 n March 24, 2021, the Ministry of Corporate Affairs
O
Adjusted cash and cash equivalents as at the end of the year 2,253.28 2,255.57  he amendments listed above did not have any impact
T
(“MCA”) through a notification, amended Schedule III of
on the amounts recognised in prior periods and are not
In terms of our report attached For and on behalf of the Board of Directors the Companies Act, 2013. The amendments revise Division
expected to significantly effect the current or future
For Walker Chandiok & Co LLP I, II and III of Schedule III and are applicable from April 1,
periods.
Chartered Accountants 2021. Key amendments relating to Division II which relate
Firm’s Registration No. 001076N/N500013 ONKAR KANWAR NEERAJ KANWAR VINOD RAI to companies whose financial statements are required to
Chairman & Managing Director Vice Chairman & Managing Director Director 3 BASIS OF ACCOUNTING AND PREPARATION OF
comply with Companies (Indian Accounting Standards)
Neeraj Goel DIN 00058921 DIN 00058951 DIN 00041867 FINANCIAL STATEMENTS
Rules 2015 are:
Partner
3.1 Statement of Compliance
Membership No. 99514 GAURAV KUMAR SEEMA THAPAR
Balance Sheet: The financial statements have been prepared to comply in
Chief Financial Officer Company Secretary
Gurugram London Membership No - FCS 6690 • Lease liabilities should be separately disclosed under all material respects with the Indian Accounting Standards
May 12, 2021 May 12, 2021 the head ‘financial liabilities’, duly distinguished as (Ind AS) as notified by Ministry of Corporate Affairs under
current or non-current. Section 133 of the Companies Act, 2013 (‘the Act’) read
with the Companies (Indian Accounting Standards) Rules,
• Certain additional disclosures in the statement of
2015, as amended and other relevant provisions of the Act.
changes in equity such as changes in equity share
capital due to prior period errors and restated balances  he financial statements are presented in Indian Rupee
T
at the beginning of the current reporting period. (‘INR’), which is also the functional currency of the
Company.
• Specified format for disclosure of shareholding of
promoters. The financial statements for the year ended March 31,
2021 were authorised and approved for issue by the Board
• Specified format for ageing schedule of trade
of Directors on May 12, 2021.
receivables, trade payables, capital work-in-progress
and intangible asset under development.
3.2 Basis of preparation and presentation
• If a company has not used funds for the specific purpose The financial statements have been prepared on accrual
for which it was borrowed from banks and financial basis under the historical cost convention except for
institutions, then disclosure of details of where it has certain financial instruments that are measured at fair
been used. values at the end of each reporting period, as explained
in the accounting policies below.
• Specific disclosure under ‘additional regulatory
requirement’ such as compliance with approved schemes  istorical cost is generally based on the fair value of the
H
of arrangements, compliance with number of layers of consideration given in exchange for goods and services.
companies, title deeds of immovable property not held
Fair value is the price that would be received to sell an
in name of company, loans and advances to promoters,
asset or paid to transfer a liability in an orderly transaction
directors, key managerial personnel (KMP) and related
between market participants at the measurement date,
parties, details of benami property held etc
regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating
the fair value of an asset or a liability, the Company takes

154 Apollo Tyres Ltd Annual Report 2020-21 155

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

into account the characteristics of the asset or liability (iv) T

 he balance of the retained earnings appearing in the liabilities in a transaction that affects neither the taxable property assets, commences when the assets are ready
if market participants would take those characteristics financial statements of the transferor is aggregated profit nor the accounting profit. for their intended use.
into account when pricing the asset or liability at the with the corresponding balance appearing in the
 he carrying amount of deferred tax assets is reviewed
T Fixtures and equipment are stated at cost less accumulated
measurement date. Fair value for measurement and/ financial statements of the transferee.
at the end of each reporting period and reduced to the depreciation and accumulated impairment losses.
or disclosure purposes in these financial statements
extent that it is no longer probable that sufficient taxable
is determined on above basis, except for share-based 3.4 Inventories Property, plant and equipment are capitalised at costs
profits will be available to allow all or part of the asset to
payment transactions that are within the scope of Ind AS I nventories are valued at the lower of cost and estimated relating to the acquisition and installation (net of tax
be recovered.
102 - Share Based Payment, and measurements that have net realizable value (net of allowances) after providing credits wherever applicable) and include finance cost on
some similarities to fair value but are not fair value, such for obsolescence and other losses, where considered M inimum alternate tax (‘MAT’) credit entitlement is borrowed funds attributable to acquisition of qualifying
as net realisable value in Ind AS 2 - Inventories or value in necessary. The cost comprises cost of purchase, cost recognised as an asset only when and to the extent there fixed assets for the period up to the date when the asset
use in Ind AS 36 - Impairment of Assets. of conversion and other costs including appropriate is convincing evidence that normal income tax will be paid is ready for its intended use, and adjustments arising
production overheads in the case of finished goods and during the specified period. In the year in which MAT credit from foreign exchange differences arising on foreign
I n addition, for financial reporting purposes, fair value work in progress, incurred in bringing such inventories to becomes eligible to be recognised as an asset is created currency borrowings to the extent they are regarded as an
measurements are categorised into Level 1, 2 or 3 their present location and condition. Trade discounts or by way of a credit to the Standalone Statement of Profit adjustment to interest costs. Other incidental expenditure
based on the degree to which the inputs to the fair value rebates are deducted in determining the costs of purchase. and Loss and shown as MAT credit entitlement. This is attributable to bringing the fixed assets to their working
measurements are observable and the significance of the Net realisable value represents the estimated selling price reviewed at each balance sheet date and the carrying condition for intended use are capitalized. Subsequent
inputs to the fair value measurement in its entirety, which for inventories less all estimated costs of completion and amount of MAT credit entitlement is written down to the expenditure relating to fixed assets is capitalised only
are described as follows: costs necessary to make the sale. extent it is not reasonably certain that normal income tax if such expenditure results in an increase in the future
will be paid during the specified period. benefits from such asset beyond its previously assessed
• Level 1 inputs are quoted prices (unadjusted) in active In case of raw materials, stores and spares and traded
standard of performance.
markets for identical assets or liabilities that the entity goods, cost (net of tax credits wherever applicable) is  eferred tax liabilities and assets are measured at the tax
D
can access at the measurement date; determined on a moving weighted average basis, and, rates that are expected to apply in the period in which the Depreciation is recognised so as to write off the cost
in case of work in progress and finished goods, cost is liability is settled or the asset realised, based on tax rates or valuation of assets (other than freehold land and
• Level 2 inputs are inputs, other than quoted prices
determined on a First In First Out basis. (and tax laws) that have been enacted or substantively properties under construction) less their residual values
included within Level 1, that are observable for the asset
enacted by the end of the reporting period. over their useful lives, using the straight-line method. The
or liability, either directly or indirectly; and
3.5 Taxation estimated useful lives, residual values and depreciation
The measurement of deferred tax liabilities and assets
• Level 3 inputs are unobservable inputs for the asset or I ncome tax expense recognised in Standalone Statement method are reviewed at the end of each reporting period,
reflects the tax consequences that would follow from the
liability. of Profit and Loss comprised the sum of deferred tax with the effect of any changes in estimate accounted for
manner in which the Company expects, at the end of the
and current tax except the ones recognised in other on a prospective basis.
reporting period, to recover or settle the carrying amount
The principal accounting policies are set out below: comprehensive income or directly in equity.
of its assets and liabilities. The management believes that these estimated useful
lives are realistic and reflect fair approximation of the
3.3 Business Combinations Current Tax
Current and Deferred tax for the year period over which the assets are likely to be used.
Common control business combinations includes Current tax is the amount of tax payable on the taxable
Current and deferred tax are recognised in the Statement
transactions, such as transfer of subsidiaries or businesses, income for the year as determined in accordance with the A ssets held under leases are depreciated over their
of Profit and Loss, except when they relate to items that
between entities within a Company. applicable income tax laws of India. Taxable profit differs expected lease term on the same basis as owned assets.
are recognised in other comprehensive income or directly
from ‘profit before tax’ as reported in the standalone However, when there is no reasonable certainty that
 usiness combinations involving entities or businesses
B in equity, in which case, the current and deferred tax are
statement of profit and loss because of items of income or ownership will be obtained by the end of the lease term,
under common control are accounted for using the pooling also recognised in other comprehensive income or directly
expense that are taxable or deductible in other years and assets are depreciated over the shorter of the lease term
of interests method. in equity respectively. Where current tax or deferred
items that are never taxable or deductible. The current tax and their useful lives.
tax arises from the initial accounting for a business
The pooling of interest method is considered to involve the is calculated using tax rates that have been enacted or
combination, the tax effect is included in the accounting
following: substantively enacted by the end of the reporting period.  he estimated average useful life considered for the assets
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for the business combination.
are as under.
(i) The assets and liabilities of the combining entities are
Deferred tax
reflected at their carrying amounts. 3.6 Property, plant and equipment (‘PPE’) Category of assets No. of years
D eferred tax is recognized on temporary differences
Land and buildings held for use in the production or supply Building 5 - 60
(ii) N
 o adjustments are made to reflect fair values, or between the carrying amount of assets and liabilities
of goods or services, or for administrative purposes, are Plant and equipment 3 - 25
recognise any new assets or liabilities. The only in the financial statements and quantified using the tax Electrical installations 1 - 10
stated in the balance sheet at cost less accumulated
adjustments that are made are to harmonise rates and laws enacted or substantively enacted as on the Furniture and fixtures 4 - 10
depreciation and accumulated impairment losses.
accounting policies. Balance Sheet date. Deferred tax liabilities are recognised Vehicles 4 - 10
Freehold land is not depreciated.
for all taxable temporary differences. Deferred tax assets Office equipment 4 - 10
(iii) T
 he financial information in the financial statements
are generally recognised for all deductible temporary Properties in the course of construction for production,
in respect of prior periods is restated as if the business  easehold land / Improvements thereon are amortized
L
differences to the extent that it is probable that taxable supply or administrative purposes are carried at cost, less
combination had occurred from the beginning of over the primary period of lease.
profits will be available against which those deductible any recognised impairment loss. For qualifying assets,
the preceding period in the financial statements,
temporary differences can be utilised. Such deferred tax borrowing costs are capitalised in accordance with Ind An item of property, plant and equipment is derecognised
irrespective of the actual date of the combination.
assets and liabilities are not recognised if the temporary AS 23 - Borrowing costs. Such properties are classified upon disposal or when no future economic benefits are
However, if business combination had occurred
difference arises from the initial recognition of assets and to the appropriate categories of property, plant and expected to arise from the continued use of the asset. Any
after that date, the prior period information shall be
equipment when completed and ready for intended use. gain or loss arising on the disposal or retirement of an item
restated only from that date.
Depreciation of these assets, on the same basis as other

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 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

of property, plant and equipment is determined as the what amount, the five-step model is applied. By applying defined benefit liability are recognised directly in the 3.12 Foreign currency transactions and translations
difference between the sales proceeds and the carrying the five-step model distinct performance obligations other comprehensive income in the period in which they Foreign currency transactions are recorded at rates of
amount of the asset and is recognised in the Statement are identified. The transaction price is determined and arise. Past service cost is recognised in the Statement of exchange prevailing on the date of transaction. Monetary
of Profit and Loss. allocated to the performance obligations according to Profit and Loss in the period of a plan amendment. Net assets and liabilities denominated in foreign currencies
the requirements of Ind AS 115. Performance obligations interest is calculated by applying the discount rate at the as at the balance sheet date are translated at the rate
3.7 Intangible assets are deemed to have been met when the control of goods is beginning of the period to the net defined benefit liability of exchange prevailing at the year-end. Non-monetary
I ntangible assets with finite useful lives are carried at transferred to the customer, i.e., generally when the goods or asset. Defined benefit costs are categorised as follows: items carried at fair value that are denominated in foreign
cost less accumulated amortisation and impairment have been delivered to the customer. currencies are retranslated at the rates prevailing at the
a. s ervice cost (including current service cost, past
losses, if any. The cost of an intangible asset comprises date when the fair value was determined. Non-monetary
 evenues for services are recognised when the service
R service cost, as well as gains and losses on curtailments
its purchase price, including any import duties and items that are measured in terms of historical cost in a
rendered has been completed. and settlements);
other taxes (other than those subsequently recoverable foreign currency are not retranslated.
from the tax authorities), and any directly attributable b. net interest expense or income; and
3.9 Other income  xchange differences on monetary items are recognised in
E
expenditure on making the asset ready for its intended use
 ividend income from investments is recognised when the
D c. re-measurement the Statement of Profit and Loss in which they arise except
and net of any trade discounts and rebates. Subsequent
right to receive payment has been established (provided for:
expenditure on an intangible asset after its purchase / The retirement benefit obligation recognised in the
that it is probable that the economic benefits will flow to
completion is recognised as an expense when incurred balance sheet represents the actual deficit or surplus in a. exchange differences on foreign currency borrowings
the Company and the amount of income can be measured
unless it is probable that such expenditure will enable the the Company’s defined benefit plans. Any surplus resulting relating to assets under construction for future
reliably).
asset to generate future economic benefits in excess of its from this calculation is limited to the present value of any productive use, which are included in the cost of those
originally assessed standards of performance and such I nterest income from a financial asset is recognised when economic benefits available in the form of refunds from assets when they are regarded as an adjustment to
expenditure can be measured and attributed to the asset it is probable that the economic benefits will flow to the the plans or reductions in future contributions to the plans. interest costs on those foreign currency borrowings;
reliably, in which case such expenditure is added to the Company and the amount of income can be measured
b.  xchange differences on transactions entered into in
e
cost of the asset. reliably. Interest income is accrued on a time basis, Other current and non-current employee benefits
order to hedge certain foreign currency risks; and
by reference to the principle outstanding and at the Liabilities recognised in respect of short-term employee
The intangible assets are amortized over their respective
effective interest rate applicable, which is the rate that benefits are measured at the undiscounted amount of the c. exchange differences on monetary items receivable
individual estimated useful lives on a straight-line basis,
exactly discounts estimated future cash receipts through benefits expected to be paid in exchange for the related from or payable to a foreign operation for which
commencing from the date the asset is available to the
the expected life of the financial asset to that asset’s net service. settlement is neither planned nor likely to occur
Company for its use. The amortisation period are reviewed
carrying amount on initial recognition. (therefore forming part of the net investment in the
at the end of each financial year and the amortisation Liabilities recognised in respect of other long-term
foreign operation), which are recognised initially
method is revised to reflect the changed pattern. Royalty income is recognised on accrual basis in employee benefits are measured at the present value
in other comprehensive income and reclassified
accordance with the substance of the relevant agreement of the estimated future cash outflows expected to be
from equity to the Statement of Profit and Loss on
Derecognition of intangible assets (provided that it is probable that the economic benefits made by the Company in respect of services provided by
repayment of the monetary items.
An intangible asset is derecognised upon disposal or when will flow to the Company and the amount of income can employees up to the reporting date.
no future economic benefits are expected to arise from be measured reliably).  ccording to Appendix B of Ind AS 21 “Foreign currency
A
the continued use of the asset. Gains or losses arising 3.11 Government grants, subsidies and export incentives transactions and advance consideration”, purchase or
from derecognition of an intangible asset, measured 3.10 Employee benefits G overnment grants and subsidies are recognised when sale transactions must be translated at the exchange
as the difference between the net disposal proceeds  mployee benefits include wages and salaries, provident
E there is reasonable assurance that the Company will rate prevailing on the date the asset or liability is initially
and the carrying amount of the asset, are recognised fund, superannuation fund, employee state insurance comply with the conditions attached to them and the recognized. In practice, this is usually the date on which
in the Statement of Profit and Loss when the asset is scheme, gratuity fund and compensated absences. grants / subsidy will be received. the advance payment is paid or received. In the case of
derecognised. multiple advances, the exchange rate must be determined
 overnment grants whose primary condition is that the
G
Defined Contribution Plans for each payment and collection transaction.
The useful life considered for the intangible assets are as Company should purchase, construct or otherwise acquire
Contributions to defined contribution plans are recognised
under: non-current assets are recognised as deferred revenue in
as an expense when employees have rendered service 3.13 Employee share based payments
the balance sheet and transferred to the Statement of
Category of Assets No. of Years entitling them to the contributions.  tock appreciation rights (Phantom stock units) are
S
Profit and Loss on a systematic basis over the expected
Computer Software 3-6 granted to employees under the Cash-settled Employee
useful life of the related assets.
Defined Benefit Plans Share-based Payment Plan (Phantom Stock Plan).
3.8 Revenue recognition For defined benefit retirement plans, the cost of providing  overnment grants related to the income are deferred
G
For cash-settled share-based payments, a liability is
I n accordance with Ind AS 115, the Company recognises benefits is determined using the projected unit credit and recognized in the Statement of Profit and Loss as an
recognised for the goods or services acquired, measured
the amount as revenue from contracts with customers, method, with actuarial valuations being carried out at the income in the period in which related obligations are met.
initially at the fair value of the liability. At the end of
which is received for the transfer of promised goods to end of each annual reporting period. Re-measurement,
 xport incentives under various schemes notified by
E each reporting period until the liability is settled, and
customers in exchange for those goods. The relevant comprising actuarial gains and losses, the effect of
the Government have been recognised on the basis of at the date of settlement, the fair value of the liability is
point in time or period of time is the transfer of control of the changes to the asset ceiling (if applicable) and the
applicable regulations, and when reasonable assurance remeasured, with any changes in fair value recognised in
the goods (control approach). The Company recognises return on plan assets (excluding net interest), is reflected
to receive such revenue is established. the Statement of Profit and Loss.
revenue at point in time. Revenue is reduced for customer immediately in the Balance Sheet with a charge or credit
returns, taxes on sales, estimated rebates and other similar recognised in other comprehensive income in the period  xport incentives earned in the year of exports are netted
E
3.14 Borrowing costs
allowances. To determine when to recognise revenue and at in which they occur. The re-measurements of the net off from cost of raw material imported.
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are

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 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

assets that necessarily take a substantial period of time present value of lease payments. Lease liabilities are re individual cash-generating units, or otherwise they are obligations arising from past events where it is not
to get ready for their intended use or sale, are added to measured with a corresponding adjustment to the related allocated to the smallest Company of cash-generating probable that an outflow of resources will be required to
the cost of those assets, until such time as the assets are ROU asset if the Company changes its assessment as to units for which a reasonable and consistent allocation settle the obligation or a reliable estimate of the amount
substantially ready for their intended use or sale. whether it will exercise an extension or a termination basis can be identified. of the obligation cannot be made. When some or all of
option. the economic benefits required to settle a provision are
All other borrowing costs are recognised in the Statement I ntangible assets with indefinite useful lives and intangible
expected to be recovered from a third party, a receivable
of Profit and Loss in the period in which they are incurred.  ease liability and ROU assets have been separately
L assets not yet available for use are tested for impairment
is recognised as an asset if it is virtually certain that
Other finance costs includes interest on other contractual presented in the Balance sheet and the payment of at least annually, or whenever there is an indication that
reimbursement will be received and the amount of the
obligations. principal portion of lease liabilities has been classified as the asset may be impaired.
receivable can be measured reliably.
financing cash flows.
Recoverable amount is the higher of fair value less costs
3.15 Leases Provisions for the expected cost of sales related obligations
 he weighted average incremental borrowing rate applied
T of disposal and value in use. In assessing value in use,
The Company as lessee are recognised at the date of sale of the relevant products,
to lease liabilities is 8% p.a. the estimated future cash flows are discounted to their
The Company’s lease asset classes primarily consist at the management’s best estimate of the expenditure
present value using a pre-tax discount rate that reflects
of leases for Building and Plant and Machinery. The required to settle the Company’s obligation.
3.16 Earnings per share current market assessments of the time value of money
Company assesses whether a contract contains a lease,
 asic earnings per share is computed by dividing the
B and the risks specific to the asset for which the estimates
at inception of a contract. A contract is, or contains, a 3.19 Financial instruments
profit / (loss) after tax (including the post tax effect of of future cash flows have not been adjusted.
lease if the contract conveys the right to control the use  inancial assets and financial liabilities are recognised
F
extraordinary items, if any) by the weighted average
of an identified asset for a period of time in exchange for I f the recoverable amount of an asset (or cash-generating when an entity becomes a party to the contractual
number of equity shares outstanding during the year.
consideration. To assess whether a contract conveys the unit) is estimated to be less than its carrying amount, the provisions of the instruments.
right to control the use of an identified asset, the Company Diluted earnings per share is computed by dividing the
 carrying amount of the asset (or cash-generating unit) is
Financial assets and financial liabilities are initially
assesses whether: (1) the contract involves the use of an profit / (loss) after tax (including the post tax effect of reduced to its recoverable amount. An impairment loss is
measured at fair value. Transaction costs that are directly
identified asset, (2) the Company has substantially all of extraordinary items, if any) as adjusted for dividend, recognised immediately in the Statement of Profit and
attributable to the acquisition or issue of financial assets
the economic benefits from the use of the asset through interest and other charges to expense or income (net of Loss, unless the relevant asset is carried at a revalued
and financial liabilities (other than financial assets and
the period of the lease, and (3) the Company has the right any attributable taxes) relating to the dilutive potential amount, in which case the impairment loss is treated as a
financial liabilities at fair value through profit and loss) are
to direct the use of the asset. equity shares, by the weighted average number of equity revaluation decrease.
added to or deducted from the fair value of the financial
shares considered for deriving basic earnings per share
At the date of commencement of the lease, the Company  hen an impairment loss subsequently reverses, the
W assets or financial liabilities, as appropriate, on initial
and the weighted average number of equity shares which
recognizes a Right of use (ROU) asset and a corresponding carrying amount of the asset (or a cash-generating unit) recognition. Transaction costs directly attributable to the
could have been issued on the conversion of all dilutive
lease liability for all lease arrangements under which it is increased to the revised estimate of its recoverable acquisition of financial assets or financial liabilities at fair
potential equity shares. Potential equity shares are
is a lessee, except for short-term leases and low value amount, but so that the increased carrying amount does value through profit and loss are recognised immediately
deemed to be dilutive only if their conversion to equity
leases. For short-term leases and low value leases, the not exceed the carrying amount that would have been in the Statement of Profit and Loss.
shares would decrease the net profit per share from
Company recognizes the lease payments as an expense determined had no impairment loss been recognised
continuing ordinary operations. Potential dilutive equity
on a straight-line basis over the term of the lease. for the asset (or cash-generating unit) in prior years. A 3.20 Financial assets
shares are deemed to be converted as at the beginning of
reversal of an impairment loss is recognised immediately All regular way purchases or sales of financial assets
 ertain lease arrangements include options to extend or
C the period, unless they have been issued at a later date.
in the Statement of Profit and Loss, unless the relevant are recognised and derecognised on a trade date basis.
terminate the lease before the end of the lease term. ROU The dilutive potential equity shares are adjusted for the
asset is carried at a revalued amount, in which case the Regular way purchases or sales are purchases or sales of
assets and lease liabilities include these options when it is proceeds receivable had the shares been actually issued
reversal of the impairment loss is treated as a revaluation financial assets that require delivery of assets within the
reasonably certain that they will be exercised. at fair value (i.e., average market value of the outstanding
increase. time frame established by regulation or convention in the
shares). Dilutive potential equity shares are determined
 he ROU assets are initially recognized at cost, which
T marketplace.
independently for each period presented. The number of
comprises the initial amount of the lease liability 3.18 Provisions and contingencies
equity shares and potentially dilutive equity shares are All recognised financial assets are subsequently measured
adjusted for any lease payments made at or prior to the  provision is recognized when the Company has a present
A
adjusted for share splits / reverse share splits and bonus in their entirety at either amortised cost or fair value,
commencement date of the lease plus any initial direct obligation (legal / constructive) as a result of past events
shares, as appropriate. depending on the classification of the financial assets.
costs less any lease incentives. They are subsequently and it is probable that an outflow of resources will be
measured at cost less accumulated depreciation and required to settle the obligation, in respect of which a
3.17 Impairment of tangible and intangible assets 3.20.1 Classification of financial asset
impairment losses. reliable estimate can be made.
 t the end of each reporting period, the Company reviews
A a. Loans and receivable
 OU assets are depreciated from the date of
R the carrying amounts of its tangible and intangible assets  he amount recognised as a provision is the best estimate
T Financial assets that meet the following conditions are
commencement of the lease on a straight -line basis over or cash generating units to determine whether there is any of the consideration required to settle the present subsequently measured at amortised cost less impairment
the shorter of the lease term and the useful life of the indication that those assets have suffered an impairment obligation at the end of the reporting period, taking loss (except for investments that are designated as at
underlying asset. loss. If any such indication exists, the recoverable amount into account the risks and uncertainties surrounding FVTPL on initial recognition):
of the asset is estimated in order to determine the extent the obligation. When a provision is measured using the
The lease liability is initially measured at amortized cost i. t he asset is held within a business model whose
of the impairment loss (if any). When it is not possible cash flows estimated to settle the present obligation, its
at the present value of the future lease payments. For objective is to hold assets in order to collect
to estimate the recoverable amount of an individual carrying amount is the present value of those cash flows
leases under which the rate implicit in the lease is not contractual cash flows; and
asset, the Company estimates the recoverable amount (when the effect of the time value of money is material).
readily determinable, the Company uses its incremental
of the cash-generating unit to which the asset belongs. ii. t he contractual terms of the instrument give rise on
borrowing rate based on the information available at the Contingent liability is disclosed for (i) Possible obligation
When a reasonable and consistent basis of allocation specified dates to cash flows that are solely payments
date of commencement of the lease in determining the which will be confirmed only by future events not
can be identified, corporate assets are also allocated to of principal and interest on the principal amount
wholly within the control of the Company or (ii) Present
outstanding.

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The effective interest method is a method of calculating recognition to present subsequent changes in fair value in significantly since initial recognition, the Company the cumulative gain or loss that had been recognised in
the amortised cost of a debt instrument and of allocating other comprehensive income for equity instruments which measures the loss allowance for that financial instrument other comprehensive income and accumulated in equity
interest income over the relevant period. The effective are not held for trading. at an amount equal to 12-month expected credit is recognised in the Statement of Profit and Loss if such
interest rate is the rate that exactly discounts estimated losses.12-month expected credit losses are portion of the gain or loss would have otherwise been recognized in the
Debt instrument that do not meet the amortised cost
future cash receipts (including all fees and points paid or life-time expected credit losses and represent the lifetime Statement of Profit and Loss on disposal of that financial
criteria or fair value through other comprehensive income
received that form an integral part of the effective interest cash shortfalls that will result if default occurs within the asset.
criteria (see above) are measured at FVTPL. In addition,
rate, transaction costs and other premiums or discounts) 12 months after the reporting date and thus, are not cash
debt instruments that meet the amortised cost criteria  n de-recognition of a financial asset other than in its
O
through the expected life of the debt instrument, or, where shortfalls that are predicted over the next 12 months.
or the fair value through other comprehensive income entirety (e.g. when the Company retains an option to
appropriate, a shorter period, to the net carrying amount
criteria but are designated as at FVTPL are measured at I f the Company measured loss allowance for a financial repurchase part of a transferred asset), the Company
on initial recognition.
FVTPL. instrument at lifetime expected credit loss model in the allocates the previous carrying amount of the financial
Income is recognised on an effective interest basis for debt previous period, but determines at the end of a reporting asset between the part it continues to recognise under
 financial asset may be designated as at FVTPL upon
A
instruments other than those financial assets classified as period that the credit risk has not increased significantly continuing involvement, and the part it no longer
initial recognition if such designation eliminates or
at FVTPL. Interest income is recognised in the Statement since initial recognition due to improvement in credit recognises on the basis of the relative fair values of those
significantly reduces a measurement or recognition
of Profit and Loss and is included in the ‘Other Income’ line quality as compared to the previous period, the Company parts on the date of the transfer. The difference between
inconsistency that would arise from measuring assets or
item. again measures the loss allowance based on 12- month the carrying amount allocated to the part that is no longer
liabilities or recognising the gains and losses on them on
expected credit losses. recognised and the sum of the consideration received for
different bases.
b. Assets available for sale the part no longer recognised and any cumulative gain
 hen making the assessment of whether there has been
W
Financial assets that meet the following conditions  inancial assets at FVTPL are measured at fair value at
F or loss allocated to it that had been recognised in other
a significant increase in credit risk since initial recognition,
are subsequently measured at fair value through other the end of each reporting period, with any gains or losses comprehensive income is recognised in the Statement of
the Company uses the change in the risk of a default
comprehensive income (‘FVTOCI’) (except for investments arising on re-measurement recognised in the Statement Profit and Loss if such gain or loss would have otherwise
occurring over the expected life of the financial instrument.
that are designated as at FVTPL on initial recognition):” of Profit and Loss. The net gain or loss recognised in the been recognized in the Statement of Profit and Loss on
To make that assessment, the Company compares the risk
Statement of Profit and Loss is included in the ‘other disposal of that financial asset. A cumulative gain or
i. t he asset is held within a business model whose of a default occurring on the financial instrument as at the
income’ line item. Dividend on financial assets at FVTPL loss that had been recognised in other comprehensive
objective is achieved both by collecting contractual reporting date with the risk of a default occurring on the
is recognised when the Company’s right to receive the income is allocated between the part that continues to
cash flows and selling financial assets; and financial instrument as at the date of initial recognition
dividends is established, it is probable that the economic be recognised and the part that is no longer recognised
and considers reasonable and supportable information,
ii. t he contractual terms of the instrument give rise on benefits associated with the dividend will flow to the on the basis of the relative fair values of those parts.
that is available without undue cost or effort, that is
specified dates to cash flows that are solely payments entity, the dividend does not represent a recovery of part
indicative of significant increases in credit risk since initial
of principal and interest on the principal amount of cost of the investment and the amount of dividend can 3.20.4 Foreign Exchange gains and losses
recognition.
outstanding. be measured reliably. The fair value of financial assets denominated in a foreign
 or trade receivables or any contractual right to
F currency is determined in that foreign currency and
 ll other financial assets are subsequently measured at
A
3.20.2 Impairment of financial assets receive cash or another financial asset that result from translated at the spot rate at the end of each reporting
fair value.
The Company applies the expected credit loss model for transactions that are within the scope of Ind AS 115 - period.
recognising impairment loss on financial assets measured Revenue from contracts with customers, the Company
c. Assets held for trading For foreign currency denominated financial assets
at amortised cost, debt instruments at FVTOCI, lease always measures the loss allowance at an amount equal to
A financial asset is held for trading if: measured at amortised cost and FVTPL, the exchange
receivables, trade receivables, other contractual rights lifetime expected credit losses. Credit impaired balances
i. it has been acquired principally for the purpose of differences are recognised in the Statement of Profit and
to receive cash or other financial assets, and financials are disclosed under provision for doubtful debts.
selling it in the near term; or Loss except for those which are designated as hedging
guarantees not designated as at FVTPL.
instruments in hedging relationship.
ii.  n initial recognition it is part of a portfolio of
o 3.20.3 De-recognition of financial assets
 xpected credit losses are the weighted average of credit
E
identified financial instruments that the Company The Company derecognises a financial asset when the
losses with the respective risks of default occurring as 3.21 Financial liabilities and equity instruments
manages together and has a recent actual pattern contractual rights to the cash flows from the asset expire,
the weights. Credit loss is the difference between all 3.21.1 Classification as debt or equity
of short-term profit-taking; or or when it transfers the financial asset and substantially
contractual cash flows that are due to the Company in Debt and equity instruments issued by the Company
all the risks and rewards of ownership of the asset to
iii. i t is a derivative that is not designated and effective accordance with the contract and all the cash flows that are classified as either financial liabilities or as equity
another party. If the Company neither transfers nor
as a hedging instrument or a financial guarantee. the Company expects to receive (i.e., all cash shortfalls), in accordance with the substance of the contractual
retains substantially all the risks and rewards of ownership
discounted at the original effective interest rate (or arrangements and the definitions of a financial liability
D ividends on these investments in equity instruments and continues to control the transferred asset, the
credit-adjusted effective interest rate for purchased or and an equity instrument.
are recognised in the Statement of Profit and Loss when Company recognises its retained interest in the asset and
originated credit-impaired financial assets). The Company
the right to receive the dividends is established and it an associated liability for amounts it may have to pay.
estimates cash flows by considering all contractual terms 3.21.2 Equity instruments
is probable that the economic benefits associated with If the Company retains substantially all the risks and
of the financial instrument (for example, prepayment, An equity instrument is any contract that evidences a
the dividend will flow to the entity, the dividend does not rewards of ownership of a transferred financial asset, the
extension, call and similar options) through the expected residual interest in the assets of an entity after deducting
represent a recovery of part of cost of the investment and Company continues to recognise the financial asset and
life of that financial instruments. all of its liabilities. Equity instruments issued by the
the amount of dividend can be measured reliably. also recognises a collateralised borrowing for the proceeds
Company are recognised at the proceeds received, net of
 he Company measures the loss allowance for a financial
T received.
direct issue costs.
d. Financial assets at fair value through profit and loss instrument at an amount equal to the lifetime expected
 n de-recognition of a financial asset in its entirety, the
O
(‘FVTPL’) credit losses if the credit risk on that financial instrument
difference between the asset’s carrying amount and the
Investments in equity instruments are classified as at has increased significantly since initial recognition. If the
sum of the consideration received and receivable and
FVTPL, unless the Company irrevocably elects on initial credit risk on a financial instrument has not increased

162 Apollo Tyres Ltd Annual Report 2020-21 163

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

3.21.3 Financial liabilities subsequently measured at amortised cost are determined 3.22 Derivative financial instruments accumulated under the heading of cash flow hedging
All financial liabilities are subsequently measured at based on the effective interest method. Interest expense  he Company enters into a variety of derivative financial
T reserve. The gain or loss relating to the ineffective portion
amortised cost using the effective interest method that is not capitalised as part of costs of an asset is instruments to manage its exposure to interest rate and is recognised immediately in the Statement of Profit
or at FVTPL. However, financial liabilities that arise included in the ‘finance costs’ line item. foreign exchange rate risks, including options, foreign and Loss, and is included in the ‘Other income’/ ‘Other
when a transfer of a financial asset does not qualify exchange forward contracts and cross currency swaps. expense’ line item. Amounts previously recognised in other
The effective interest method is a method of calculating
for derecognition or when the continuing involvement comprehensive income and accumulated in equity relating
the amortised cost of a financial liability and of allocating Derivatives are initially recognised at fair value at the
approach applies, financial guarantee contracts issued to (effective portion as described above) are reclassified
interest expense over the relevant period. The effective date the derivative contracts are entered into and are
by the Company are measured in accordance with the to the Statement of Profit and Loss in the periods when
interest rate is the rate that exactly discounts estimated subsequently remeasured to their fair value at the end
specific accounting policies set out below. the hedged item affects the Statement of Profit and Loss,
future cash payments (including all fees and points paid of each reporting period. The resulting gain or loss is
in the same line as the recognised hedged item. However,
or received that form an integral part of the effective recognised in the Statement of Profit and Loss immediately
3.21.3.1 Financial liabilities at FVTPL when the hedged forecast transaction results in the
interest rate, transaction costs and other premiums unless the derivative is designated and effective as a
Financial liabilities are classified as at FVTPL when the recognition of a non-financial asset or a non-financial
or discounts) through the expected life of the financial hedging instrument, in which event the timing of the
financial liability is either held for trading or it is designated liability, such gains and losses are transferred from equity
liability, or (where appropriate) a shorter period, to the recognition in the Statement of Profit and Loss depends
as at FVTPL. (but not as a reclassification adjustment) and included in
net carrying amount on initial recognition. on the nature of the hedging relationship and the nature
the initial measurement of the cost of the non -financial
A financial liability is classified as held for trading if: of the hedged item.
asset or non-financial liability.
3.21.3.3Financial guarantee contracts
i. i t has been incurred principally for the purpose of
A financial guarantee contract is a contract that requires 3.23 Hedge Accounting In cases where the designated hedging instruments are
repurchasing it in the near term; or
the issuer to make specified payments to reimburse the The Company designates certain hedging instruments, options and forward contracts, the Company has an
ii.  n initial recognition it is part of a portfolio of
o holder for a loss it incurs because a specified debtor fails which include derivatives, embedded derivatives and option, for each designation, to designate on an instrument
identified financial instruments that the Company to make payments when due in accordance with the terms non-derivatives in respect of foreign currency risk, as only the changes in intrinsic value of the options and spot
manages together and has of a debt instrument. either fair value hedges, cash flow hedges, or hedges of element of forward contracts respectively as hedges. In
net investments in foreign operations. Hedges of foreign such cases, the time value of the options is accounted
a recent actual pattern of short-term profit-taking; or Financial guarantee contracts issued by the Company
exchange risk on firm commitments are accounted for as based on the type of hedged item which those options
are initially measured at their fair values and, if not
iii. i t is a derivative that is not designated and effective cash flow hedges. hedge.
designated as at FVTPL, are subsequently measured at:
as a hedging instrument.
At the inception of the hedge relationship, the entity I n case of transaction related hedged item in the above
i amount of loss allowance determined in accordance
 financial liability other than a financial liability held
A documents the relationship between the hedging cases, the change in time value of the options is recognised
with impairment requirements of Ind AS 109 -
for trading may be designated as at FVTPL upon initial instrument and the hedged item, along with its risk in other comprehensive income to the extent it relates
Financial Instruments; and
recognition if: management objectives and its strategy for undertaking to the hedged item and accumulated in a separate
ii.  mount initially recognised less, where appropriate,
a various hedge transactions. Furthermore, at the inception component of equity, i.e., Reserve for time value of options
i. s uch designation eliminates or significantly reduces a
cumulative amortisation recognised in accordance of the hedge and on an ongoing basis, the Company and forward elements of forward contracts in hedging
measurement or recognition inconsistency that would
with the revenue recognition policies of Ind AS 115, documents whether the hedging instrument is highly relationship. This separate component is removed and
otherwise arise; or
Revenue from Contracts with Customers. effective in offsetting changes in fair values or cash flows directly included in the initial cost or other carrying amount
ii. the financial liability forms part of a Company of of the hedged item attributable to the hedged risk. of the asset or the liability (i.e., not as a reclassification
For financial liabilities that are denominated in a foreign
financial assets or financial liabilities or both, which adjustment thus not affecting other comprehensive
currency and are measured at amortised cost at the end
is managed and its performance is evaluated on a Fair Value hedges income) if the hedged item subsequently results in
of each reporting period, the foreign exchange gains and
fair value basis, in accordance with the Company’s C hanges in fair value of the designated portion of recognition of a non-financial asset or a non-financial
losses are determined based on the amortised cost of the
documented risk management or investment derivatives that qualify as fair value hedges are recognised liability. In other cases, the amount accumulated is
instruments and are recognised in the ‘Other Income’ line
strategy, and information about the Companying is in profit or loss immediately, together with any changes reclassified to the Statement of Profit and Loss as a
item.
provided internally on that basis; or in the fair value of the hedged asset or liability that are reclassification adjustment in the same period in which the
 he fair value of financial liabilities denominated in a
T attributable to the hedged risk. The change in the fair hedged expected future cash flows affect the Statement
iii. i t forms part of a contract containing one or more
foreign currency is determined in that foreign currency value of the designated portion of hedging instrument and of Profit and Loss.
embedded derivatives, and Ind AS 109 - Financial
and translated at the spot rate at the end of the reporting the change in fair value of the hedged item attributable
Instruments permits the entire combined contract to In case of time-period related hedged item in the above
period. For financial liabilities that are measured as at to the hedged risk are recognised in the Statement of
be designated as at FVTPL in accordance with Ind AS cases, the change in time value of the options is recognised
FVTPL, the foreign exchange component forms part Profit and Loss in the line item relating to the hedged
109. in other comprehensive income to the extent it relates
of the fair value gains or losses and is recognised in the item. Hedge accounting is discontinued when the hedging
to the hedged item and accumulated in a separate
 inancial liabilities at FVTPL are stated at fair value,
F Statement of Profit and Loss. instrument expires or is sold, terminated, or exercised, or
component of equity, i.e., Reserve for time value of options
with any gains or losses arising on remeasurement when it no longer qualifies for hedge accounting. The fair
and forward elements of forward contracts in hedging
recognised in the Statement of Profit and Loss. 3.21.3.4 Derecognition of financial liabilities value adjustment to the carrying amount of the hedged
relationship. The time value of options at the date of
The Company derecognises financial liabilities when, and item arising from the hedged risk is amortised to profit or
designation of the options in the hedging relationships
3.21.3.2 Financial liabilities subsequently measured at only when, the Company’s obligations are discharged, loss from that date.
is amortised on a systematic and rational basis over the
amortised cost cancelled or they expire. The difference between the
period during which the options’ intrinsic value could
Financial liabilities that are not held-for-trading and are carrying amount of the financial liability derecognised Cash flow hedges
affect the Statement of Profit and Loss. This is done as
not designated as at FVTPL are measured at amortised and the consideration paid and payable is recognised in T he effective portion of changes in the fair value of
a reclassification adjustment and hence affects other
cost at the end of subsequent accounting periods. the Statement of Profit and Loss. derivatives that are designated and qualify as cash flow
comprehensive income.
The carrying amounts of financial liabilities that are hedges is recognised in other comprehensive income and

164 Apollo Tyres Ltd Annual Report 2020-21 165

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

In cases where only the spot element of the forward policies, reported amounts and related disclosures.

As on
March 31, 2021 March 31, 2020
` Million

144.64
171.24

15,971.72

66,576.12

1,548.88

902.83

567.29

439.11

86,321.83

320.36

86,642.19
contracts is designated in a hedging relationship and These judgments and estimates may have an impact on
the forward element of the forward contract is not the assets and liabilities, disclosure of contingent liabilities

Net Block
designated, the Company makes the choice for each at the date of the financial statements, and income
designation whether to recognise the changes in and expense items for the period under review. Actual

(d)
As on

144.64
169.11

17,761.72

75,320.36

1,822.70

642.01

539.30

320.64

96,720.48

375.95

97,096.43
forward element of fair value of the forward contracts results may differ from these judgements and estimates.
in the Statement of Profit and Loss or to account for All assumptions, expectations and forecasts that are
this element similar to the time value of an option. used as a basis for judgments and estimates in the
Hedge accounting is discontinued when the hedging financial statements represent as accurately an outlook
instrument expires or is sold, terminated, or exercised, as possible for the Company. These judgements and

As on
March 31, 2021

-
27.04

4,442.59

32,801.97

1,869.51

1,724.74

413.14

553.37

41,832.36

657.44

42,489.80
or when it no longer qualifies for hedge accounting. Any estimates only represent the interpretation of the
gain or loss recognised in other comprehensive income and Company as of the dates on which they were prepared.
accumulated in equity at that time remains in equity and Important judgments and estimates relate largely to

Accumulated Depreciation / Amortisation

is recognised when the forecast transaction is ultimately provisions, pensions, tangible and intangible assets (lives,

Eliminated
on disposal of
assets

-
-

11.64

13.58

28.32

19.66

0.12

73.32

73.32
recognised in the Statement of Profit and Loss. When residual values and impairment), deferred tax assets and
a forecast transaction is no longer expected to occur, liabilities and valuation of financial instruments.
the gain or loss accumulated in equity is recognised
immediately in the Statement of Profit and Loss. 3.27 Estimation of uncertainties relating to the global

(a)
Depreciation /
amortisation
expense

-
2.19

674.25

4,584.70

257.21

217.56

121.02

139.64

5,996.57

102.89

6,099.46
health pandemic from COVID-19
3.24 Cash and cash equivalents The Company has considered the possible effects that
Cash comprises cash on hand and demand deposits with may result from the Covid 19 pandemic on the carrying
banks. Cash equivalents are short-term balances (with amounts of property, plant and equipment, investments,

As on
April 1, 2020

-
24.85

3,779.98

28,230.85

1,612.30

1,535.50

311.78

413.85

35,909.11

554.55

36,463.66
an original maturity of three months or less from the date inventories, receivables and other current assets. In
of acquisition), highly liquid investments that are readily developing the assumptions relating to the possible future
convertible into known amounts of cash and which are uncertainties in the global economic conditions because

B1 PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS AS ON MARCH 31, 2021
subject to insignificant risk of changes in value. of this pandemic, the management, as at the date of
approval of these financial results, has used internal and

(d)
For the purpose of the statement of cash flows, cash and

As on
March 31, 2021

144.64
196.15

22,204.31

108,122.33

3,692.21

2,366.75

952.44

874.01

138,552.84

1,033.39

139,586.23
external sources on the expected future performance of
cash equivalents consist of cash and short-term balances,
the Company. The management has performed sensitivity
as defined above, net of outstanding cash credits as they
analysis on the assumptions used and based on current
are considered an integral part of the Company’s cash
indicators of future economic conditions, expects that
management. The cash flow statement is prepared using

Disposals

-
-

75.84

40.44

139.27

38.79

0.12

294.46

294.46
the carrying amount of these assets will be recovered
indirect method.
and sufficient liquidity is available to fund the business
operations for at least another 12 months. Given the

Gross Block
3.25 Rounding off amounts
uncertainties of the pandemic, the final impact on the
 ll amounts disclosed in the financial statements and
A

(b)

(b)

(b)

(b)

(b)

(b)

(b)

(c )
Company’s assets in future may differ from that estimated

Additions

-
0.06

2,528.45

13,355.80

531.03

67.69

112.16

21.17

16,616.36

158.48

16,774.84
notes have been rounded off to the nearest millions as
as at the date of approval of these financial results, and
per the requirements of Schedule III of the Act unless
the Company will continue to closely monitor any material
otherwise stated.
changes to future economic conditions.

As on
April 1, 2020

144.64
196.09

19,751.70

94,806.97

3,161.18

2,438.33

879.07

852.96

122,230.94

874.91

123,105.85
3.26 Critical accounting judgements and key sources of
estimation uncertainty
 he preparation of financial statements in conformity with
T
Ind AS requires management to make certain judgements
and estimates that may effect the application of accounting

Forming an Integral Part of The Accounts

Property, plant and equipment -

owned unless otherwise stated

Plant and equipment **

Electrical installations

Furniture and fixtures

Total tangible assets

Computer software
Intangible assets:
Office equipment
Leasehold land *
B. Notes

TOTAL (A + B)
Freehold land
Description of assets

Buildings

Vehicles
Land:
A.

B.
166 Apollo Tyres Ltd Annual Report 2020-21 167
 PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS AS ON MARCH 31, 2020
` Million

168
Gross Block Accumulated Depreciation / Amortisation Net Block

Description of assets Depreciation / Eliminated

As on As on As on As on As on As on
Additions Disposals amortisation on disposal of
April 1, 2019 March 31, 2020 April 1, 2019 March 31, 2020 March 31, 2020 March 31, 2019
expense assets
A Property, plant and equipment -
owned unless otherwise stated
Land:
Freehold land 175.14 - 30.50 144.64 - - - - 144.64 175.14
Leasehold land * 196.09 - - 196.09 22.66 2.19 - 24.85 171.24 173.43
(a)
Buildings 13,332.05 6,445.19 25.54 19,751.70 3,287.70 500.73 8.45 3,779.98 15,971.72 10,044.35
(b) (d) (d)
Plant and equipment ** 75,197.72 19,861.92 252.67 94,806.97 24,758.43 3,703.23 230.81 28,230.85 66,576.12 50,439.29
(b)
Electrical installations 2,478.06 690.23 7.11 3,161.18 1,394.78 224.37 6.85 1,612.30 1,548.88 1,083.28
(b)
Furniture and fixtures 2,221.95 224.56 8.18 2,438.33 1,282.64 260.74 7.88 1,535.50 902.83 939.31
(b)
Vehicles 805.61 271.68 198.22 879.07 342.99 114.75 145.96 311.78 567.29 462.62
(b)
Office equipment 601.24 252.22 0.50 852.96 237.87 176.33 0.35 413.85 439.11 363.37
(b)
Total tangible assets 95,007.86 27,745.80 522.72 122,230.94 31,327.07 4,982.34 400.30 35,909.11 86,321.83 63,680.79
B Intangible assets:
Computer software 777.47 97.44 - 874.91 463.08 91.47 - 554.55 320.36 314.39
TOTAL (A + B) 95,785.33 27,843.24 522.72 123,105.85 31,790.15 5,073.81 400.30 36,463.66 86,642.19 63,995.18
(c)
Factsheet
Corporate

Depreciation and amortisation expense

` Million
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Property, plant and equipment 5,996.57 4,982.34
Right-to-use assets 1,034.31 1,133.24
Other intangible assets 102.89 91.47
Total 7,133.77 6,207.05
From our
Leadership

* Leasehold land is net of ` 5.39 Million (` 5.39 Million) subleased to Classic Auto Tubes Ltd., a Company in which directors are interested since the year ended 2009-10.
** Plant and equipment include jointly owned assets with gross book value of ` 311.28 Million (` 311.28 Million) and net book value of ` 213.09 Million (` 225.62 Million) which represents 50%
ownership in the asset.
(a) Represents proportionate lease premium ` 2.19 Million (` 2.19 Million) amortised.
(b) Buildings include ` 0.24 Million (` 28.03 Million), plant and equipment include ` 292.12 Million (` 339.78 Million), electrical installations include ` 0.05 Million (` 4.55 Million), furniture and fixtures
include Nil (` 1.49 Million), vehicles include ` 93.35 Million (` 14.53 Million), office equipment include Nil (` 0.01 Million) and computer software include ` 18.13 Million (` 11.78 Million) relating
to research and development (refer note C14).
(c) Includes directly attributable expenses capitalised to the extent of ` 508.51 Million (` 742.72 Million) including ` 15.39 Million (` 185.30 Million) capitalised from CWIP of previous year and
borrowing cost capitalised to the extent of ` 922.16 Million (` 1,549.06 Million) including ` 72.24 Million (` 272.04 Million) capitalised from CWIP of previous year.
(d) Buildings include buildings constructed on leasehold land with gross book value of ` 13,311.18 Million (` 12,717.47 Million) and net book value of ` 9,628.78 Million (` 9,480.86 Million).
(e) Carrying amount of tangible assets are pledged as security for liabilities (refer note B13 (a)).
Apollo Tyres
Value Creation at

(f) Capital work-in-progress includes land of ` 297.70 Million (` 248.00 Million) acquired by the Company and is in the process of getting the title deeds transferred to its name.

Apollo Tyres Ltd

I

II
B
A

(a)

(b)
At cost
Our ESG

Security deposits
Performance

B2 INVESTMENTS

Other companies:

Annual Report 2020-21

Associate company:
Quoted investments *

Subsidiary companies:
Unquoted investments **
Unquoted investments **

Employee advances - salary loan

Investments carried at cost

B3 OTHER FINANCIAL ASSETS

Investment in equity instruments:
Investment in equity instruments:
Investment in equity instruments:
At fair value through profit and loss

Investment in membership interest:

FINANCIAL ASSETS (NON-CURRENT)

Tyres (Green Field) B. V. - fully paid up

Security deposits with statutory authorities

Management
Discussion & Analysis

* Aggregate amount of quoted investments at cost

3,334 (3,334) equity shares of ` 10 each in KT

Security deposits to related parties (refer note C 20)

Alloys and Power Private Limited - fully paid up
Infra Wind Power Projects Limited - fully paid up

Tyres Centre of Excellence Limited - fully paid up

** Aggregate amount of unquoted investments at cost

Telematic Solutions Private Limited - fully paid up
1,00,000 (Nil) equity shares of ` 10 each in Apollo

(Unsecured, considered good unless otherwise stated)

Nil (5,000) equity shares of ` 100/- each in Apollo
284,000 (220,300) equity shares of ` 11.50 each in

Investments carried at fair value through profit and loss

Derivative assets measured at fair value (refer note C 10)

Investment promotion subsidy receivable (refer note C 8a)
Aggregate amount of quoted investments at market value
OPG Power Generation Private Limited - fully paid up
312,000 (312,000) equity shares of ` 10 each in Green

Apollo Tyres Co-operatief U.A. - wholly owned subsidiary

50,001 (50,001) equity shares of EUR 0.72 each in Apollo
2,256,000 (2,256,000) equity shares of ` 30 each in Suryadev
Reports
Statutory

Tyres Employees' Multipurpose Co-operative Society Limited - fully paid up

16,394 (16,394) equity shares of ` 10/- each in Bharat Gears Limited - fully paid up
Financial
Statements

24,096.01
1.20
0.36
24,097.21
24,021.94
23,973.19
45.01
1.00
2.74
75.27
74.07
-
3.27
67.68
3.12
1.20

3,688.30
975.61
1,811.72
394.12
278.97
208.52
19.36
March 31, 2021
As on

March 31, 2021

As on
24,094.77
0.42
0.36
24,095.19
24,020.94
23,973.19
45.01
-
2.74
74.25
73.83
0.50
2.53
67.68
3.12
0.42

2,326.12
1,500.33
-
346.87
253.33
200.42
25.17
March 31, 2020
As on
` Million

March 31, 2020

As on
` Million

169
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

NON-FINANCIAL ASSETS (NON-CURRENT) B7 TRADE RECEIVABLES

` Million
B4 OTHER NON - CURRENT ASSETS
As on As on
March 31, 2021 March 31, 2020
` Million
As on As on
(Unsecured, considered good unless otherwise stated)
March 31, 2021 March 31, 2020 Considered good* 7,320.36 4,450.83
(Unsecured, considered good unless otherwise stated) Considered doubtful 24.40 24.40
Capital advances 2,050.08 2,981.79 7,344.76 4,475.23
Capital advances to related parties (refer note C 20) 152.44 666.12 Provision for loss allowance (24.40) (24.40)
2,202.52 3,647.91 7,320.36 4,450.83
Statutory balances recoverable 2.58 2.58 * Includes balances with related parties (refer note C 20)
Others [refer note C 10 {f(1)}] 27.25 -
2,232.35 3,650.49 B8 CASH AND CASH EQUIVALENTS
` Million
CURRENT ASSETS As on As on
March 31, 2021 March 31, 2020
B5 INVENTORIES (i) Balances with banks:
` Million Current accounts 904.19 1,376.43
As on As on Other deposit accounts
March 31, 2021 March 31, 2020
- original maturity of 3 months or less 500.99 600.00
(valued at lower of cost and net realizable value) (ii) Cheques on hand / remittances in transit 851.13 277.51
(i) Raw materials (iii) Cash on hand 1.81 2.32
- In hand 8,031.27 5,610.22 2,258.12 2,256.26
- In transit 1,090.03 825.97
9,121.30 6,436.19
(ii) Work-in-progress * 1,663.64 1,252.70
B9 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS
` Million
(iii) Finished goods
As on As on
- In hand 7,036.10 7,986.38 March 31, 2021 March 31, 2020
- In transit 598.21 52.01 Unpaid dividend accounts * 94.37 109.57
7,634.31 8,038.39 Deposits with maturity exceeding 3 months but less than 12 months 11,650.01 0.01
(iv) Stock-in-trade 11,744.38 109.58
- In hand 1,003.69 1,094.69
- In transit 17.40 2.41
B10 OTHER FINANCIAL ASSETS
1,021.09 1,097.10
` Million
(v) Stores and spares 1,325.66 1,258.13
As on As on
20,766.00 18,082.51 March 31, 2021 March 31, 2020
* Work-in-progress consists of only automotive tyres. (Unsecured, considered good unless otherwise stated)
Employee advances 70.94 46.32
B6 INVESTMENTS Derivative assets measured at fair value (refer note C 10) 31.75 53.25
` Million Investment promotion subsidy receivable 2,640.56 647.79
As on As on Interest accrued on deposits 153.74 -
March 31, 2021 March 31, 2020
2,896.99 747.36
At fair value through profit and loss:
Quoted investments *
Investment in mutual funds 900.68 -
900.68 -

Amount in Amount in
* Mutual Funds Number of Units Number of Units
(` Million) (` Million)
Aditya Birla Sun Life Overnight Fund- Growth- Direct plan 359,616.37 400.23 - -
Axis Overnight Fund- Direct growth 460,008.44 500.45 - -
819,624.81 900.68 - -
Aggregate amount of quoted investments at cost 900.00 -
Aggregate amount of quoted investments at market value 900.68 -

170 Apollo Tyres Ltd Annual Report 2020-21 171

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

NON-FINANCIAL ASSETS (CURRENT) (e) The rights, preferences and restrictions attached to equity shares of the Company
 he Company has only one class of issued shares referred to as equity shares having a par value of Re. 1 each. The holder of
T
B11 OTHER CURRENT ASSETS
equity shares are entitled to one vote per share.
` Million
As on As on (f) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
March 31, 2021 March 31, 2020
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
(Unsecured, considered good unless otherwise stated)
held by the shareholders.
a. Advances given to related parties (refer note C 20) 564.69 493.82
b. Trade advances- considered good 491.83 508.14
(g) Over the period of five years immediately preceding March 31, 2021 and March 31, 2020, neither any bonus shares were issued
Doubtful advances 20.56 20.56
nor any shares were allotted for consideration other than cash. Further, no shares were bought back during the said period.
Provision for doubtful advances (20.56) (20.56)
c. Employee advances 52.32 48.89
d. Export obligations - advance licence benefit 304.73 252.06 NON - CURRENT LIABILITIES
e. Export incentives recoverable 109.93 455.59 B13 BORROWINGS
f. Balance with statutory authorities 1,290.36 1,241.36 ` Million
g. Gratuity (refer note C 9) - 199.27 As on As on
h. Prepaid expenses 275.33 329.79 March 31, 2021 March 31, 2020
3,089.19 3,528.92 Measured at amortised cost
Secured *
B12 SHARE CAPITAL (i) Debentures 19,661.18 10,742.62
` Million (ii) Term loans
As on As on From banks:
March 31, 2021 March 31, 2020
External commercial borrowings (ECB) 6,920.67 10,913.99
(a) Authorised Foreign currency non-resident term loan 462.72 1,143.80
750,000,000 Nos. (750,000,000 Nos.) equity shares of Re.1 each 750.00 750.00 Rupee term loan 9,528.57 9,246.85
150,000,000 Nos. (150.000,000 Nos.) cumulative redeemable preference Deferred payment liabilities
shares of `100 each 15,000.00 15,000.00 (iii) Deferred payment credit I
15,750.00 15,750.00 Deferred payment credit I 31.17 35.98
(b) Issued, subscribed, called and fully paid up Total borrowings 36,604.31 32,083.24
Equity shares of Re 1 each:
* For details regarding repayment terms, interest rate and nature of security on non current borrowings (Note B13 (a)).
635,100,946 Nos. (572,049,980 Nos.) equity shares 635.10 572.05
635.10 572.05

(c) Reconciliation of the number of equity shares and amount outstanding at the beginning and at the end of the year
As on March 31, 2021 As on March 31, 2020
Particulars Amount in Amount in
Number of shares Number of shares
` Million ` Million
Opening balance 572,049,980 572.05 572,049,980 572.05
Add: Conversion of compulsory convertible preference 63,050,966 63.05 - -
shares into equity shares (refer note C27)
Closing balance 635,100,946 635.10 572,049,980 572.05

(d) Details of shareholders holding more than 5% of the paid up equity share capital of the Company with voting rights *
As on March 31, 2021 As on March 31, 2020
Name of the Shareholder
Number of shares %age Number of shares %age
Sunrays Properties and Investment Company Private Limited 128,393,784 20.22% 36,307,648 6.35%
Emerald Sage Investment Ltd. 63,050,966 9.93% - -
White IRIS Investment Ltd. 51,054,445 8.04% 51,054,445 8.92%
HDFC Trustee Company Ltd. - A/C its various Fund 42,931,147 6.76% 41,273,025 7.21%
Osiatic Consultants & Investments Pvt.Ltd. 39,041,880 6.15% - -
Apollo Finance Limited 37,528,872 5.91% 39,778,872 6.95%
Neeraj Consultants Private Limited - - 73,827,161 12.91%

* As per the records of the Company including its register of member.

172 Apollo Tyres Ltd Annual Report 2020-21 173

 B13 (A) BORROWINGS

174
Amount outstanding Amount outstanding
as on March 31, 2021 as on March 31, 2020
(` Million) (` Million) Rate of
Terms of Details of
Particulars Current Current interest
repayment security offered
Non current maturities of Non current maturities of per annum
borrowings non current borrowings non current
borrowings borrowings
Non-convertible debentures
1,150 - 8.65 % Non-convertible debentures of ` 1 Million each 1,150.00 - 1,150.00 - 8.65% Bullet payment on Refer note below
April 30, 2026
1,050 - 8.65 % Non-convertible debentures of ` 1 Million each 1,050.00 - 1,050.00 - 8.65% Bullet payment on April 30, 2025 Refer note below
1,050 - 8.65 % Non-convertible debentures of ` 1 Million each 1,050.00 - 1,050.00 - 8.65% Bullet payment on April 30, 2024 Refer note below
1,500 - 7.80 % Non-convertible debentures of ` 1 Million each 1,498.34 - 1,497.54 - 7.80% Bullet payment on April 30, 2024 Refer note below
900 - 7.50 % Non-convertible debentures of ` 1 Million each 900.00 - 900.00 - 7.50% Bullet payment on October Refer note below
20, 2023
1,500 - 7.80 % Non-convertible debentures of ` 1 Million each 1,498.34 - 1,497.54 - 7.80% Bullet payment on April 28, 2023 Refer note below
1,050 - 7.50 % Non-convertible debentures of ` 1 Million each 1,050.00 - 1,050.00 - 7.50% Bullet payment on October 21, Refer note below
2022
1,500 - 7.80 % Non-convertible debentures of ` 1 Million each 1,498.34 - 1,497.54 - 7.80% Bullet payment on April 29, 2022 Refer note below
1,050 - 7.50 % Non-convertible debentures of ` 1 Million each - 1,050.00 1,050.00 - 7.50% Bullet payment on October 21, Refer note below
2021
5,000 - 8.75 % Non convertible debentures of ` 1 Million each 4,983.08 - - - 8.75% Bullet payment on April 09, Refer note below
2030
5,000 - 7.70 % Non convertible debentures of ` 1 Million each 4,983.08 - - - 7.70% `1,250 Million payable on May Refer note below
17, 2024 and `3,750 Million
payable on May 16, 2025.
Total 19,661.18 1,050.00 10,742.62 -
External commercial borrowings (ECB) from banks
Factsheet
Corporate

Bank 1 - ECB I 1,821.31 - 1,880.27 - 0-1% above 3 Equal annual instalments Refer note below
USD-LIBOR starting from FY 2022-23
Bank 2 - ECB I 1,821.08 - 1,879.97 - 0.25-1.25% 3 Equal annual instalments Refer note below
above USD- starting from FY 2022-23
LIBOR
Bank 3 - ECB I 1,821.75 - 1,880.91 - 0-1% above 3 Equal annual instalments Refer note below
USD-LIBOR starting from FY 2022-23
Bank 4 - ECB I 1,456.54 - 1,503.55 - 0.25-1.25% 3 Equal annual instalments Refer note below
above USD- starting from FY 2022-23
From our

LIBOR
Leadership

Bank 5 - ECB I - 3,646.08 3,769.29 - 0-1% above Bullet payment on March 21, Refer note below
USD-LIBOR 2022
Total 6,920.67 3,646.08 10,913.99 -
Foreign currency non-resident (FCNR) term loan
Bank 1 - FCNR I 90.28 180.53 279.93 186.62 0-1% above Repayment in 6 equal semi- Refer note below
USD-LIBOR annual instalments starting
from December 31, 2019
Bank 1 - FCNR II 90.80 181.61 281.59 187.73 0-1% above Repayment in 6 equal semi- Refer note below
USD-LIBOR annual instalments starting
from January 15, 2020
Apollo Tyres

Bank 1 - FCNR III 281.65 281.64 582.28 291.14 0-1% above Repayment in 6 equal semi- Refer note below
Value Creation at

USD-LIBOR annual instalments starting

Apollo Tyres Ltd

from September 30, 2020
Total 462.73 643.78 1,143.80 665.49

Amount outstanding Amount outstanding

as on March 31, 2021 as on March 31, 2020
(` Million) (` Million)
Particulars Current Current Rate of interest per annum Terms of repayment Details of security offered
Non current maturities of Non current maturities of
borrowings non current borrowings non current
Our ESG

borrowings borrowings
Performance

Rupee term loans

Bank 1 - Rupee Term Loan 2,996.85 - 2,964.92 - 0-1% above One year MCLR 28 structured quarterly instalments Refer note below

Annual Report 2020-21

after moratorium of 3 years from the
date of first disbursement
Bank 2 - Rupee Term Loan 2,474.49 - 2,469.86 - 0-1% above One year MCLR 28 structured quarterly instalments Refer note below
after moratorium of 3 years from the
date of first disbursement
Bank 3 - Rupee Term Loan 1,973.22 - 1,968.75 - 0-1% above One year MCLR 28 structured quarterly instalments Refer note below
after moratorium of 3 years from the
Management

date of first disbursement

Discussion & Analysis

Bank 4 - Rupee Term Loan 500.00 - - - 0-1% above One year MCLR 28 structured quarterly instalments Refer note below
after moratorium of 3 years from the
date of first disbursement
Bank 5 - Rupee Term Loan 985.77 11.25 996.60 - 6 months MCLR 32 structured quarterly instalments Refer note below
after moratorium of 2 years from the
date of first disbursement
Reports

Bank 6 - Rupee Term Loan 148.24 - 146.72 - 0-2% above one year T-bill Bullet payment on June 27, 2022 Refer note below
Statutory

Bank 7 - Rupee Term Loan 200.00 - 200.00 - 0-2% above one year T-bill Bullet payment on March 27, 2023 Refer note below
Bank 8 - Rupee Term Loan - 500.00 500.00 - 0-2% above one year T-bill Bullet payment on March 29, 2022 Refer note below
Bank 9 - Rupee Term Loan 250.00 - - 0-2% above one year T-bill Bullet payment on December 29, 2023 Refer note below
Total 9,528.57 511.25 9,246.85 -
Deferred payment
liabilities
Deferred payment credit I 31.17 4.82 35.98 4.46 7-8% Repayment along with interest in Wind Mills purchased under
240 consecutive monthly instalments the deferred consideration
Financial

started from May 15, 2007 payment plan

Statements

Deferred payment credit II - 0.21 - 1.47 8-9% Repayment along with Interest in 20 Engineering materials
equal quarterly instalments started purchased under the Parts
from January 31, 2011 Management Agreement
(PMA) scheme
Total 31.17 5.03 35.98 5.93

Details of securities offered to existing lenders

Note: All the long-term loans are secured by pari-passu charge on the movable fixed assets of the company. Along with this security an exclusive charge on the immovable property
of the Company’s registered office in Kochi has also been created for one of the NCD issuances aggregating to ` 5,000 Million at 8.75% p.a.
175
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

NON - CURRENT LIABILITIES CURRENT LIABILITIES

B14 OTHER FINANCIAL LIABILITIES B19 OTHER FINANCIAL LIABILITIES

` Million
` Million
As on As on
March 31, 2021 March 31, 2020 As on As on
March 31, 2021 March 31, 2020
Derivative liabilities measured at fair value (refer note C 10) 30.72 26.59
Current maturities of non current borrowings *
Lease liability (refer note C 5) 4,651.60 5,292.86
4,682.32 5,319.45 Secured
(a) Debentures 1,050.00 -

B15 PROVISIONS (b) Term loans:

Foreign currency non-resident term loan 643.78 665.49
` Million
As on As on
External commercial borrowings (ECB) 3,646.08 -
March 31, 2021 March 31, 2020 Rupee term loans 511.25 -
Provision for constructive liability (refer note C 6) 181.12 184.29 (c) Deferred payment liabilities
Provision for sales related obligations (refer note C 6) 313.63 319.03 Deferred payment credit I 4.82 4.46
494.75 503.32 Deferred payment credit II 0.21 1.47
5.03 5.93
B16 OTHER NON CURRENT LIABILITIES Interest accrued but not due on borrowings 1,465.67 694.58
` Million Unclaimed dividends # 94.37 109.57
As on As on Accounts payable - capital 3,649.02 3,667.56
March 31, 2021 March 31, 2020 Payable to micro, small and medium Enterprises - capital (refer note C 18) 186.28 76.65
Deferred revenue arising from government grant 4,949.94 3,557.06 Interest payable to micro, small and medium Enterprises (refer note C 18) 10.58 10.58
Security deposits received from dealers 68.03 85.92 Payable to related parties (refer note C 20) 455.13 316.92
Security deposits received from vendors 86.82 61.75 Security deposits - vendors 384.66 385.23
Others [refer note C 10 {f(1)}] - 50.22 Advances received / credit balance from customers 5,350.81 3,404.70
5,104.79 3,754.95 Derivative liabilities measured at fair value (refer note C 10) 16.74 0.44
Lease liability (refer note C 5) 699.47 844.94
CURRENT LIABILITIES 18,168.87 10,182.59

B 17 BORROWINGS * * For nature of security on current maturity of non current borrowings (refer note B13 (a))
` Million # Includes ` 4.86 Million (` 4.30 Million) which has not been transferred to the Investor Education and Protection Fund under Section 124 of the
As on As on Companies Act, 2013, as per the orders/ instructions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992.
March 31, 2021 March 31, 2020
At amortised cost
B20 OTHER CURRENT LIABILITIES
Secured **
` Million
From banks - cash credit 4.85 0.69 As on As on
- working capital demand loan - 2,330.00 March 31, 2021 March 31, 2020
Deferred revenue arising from government grant (refer note C 8(a)) 135.65 -
Unsecured Statutory dues payable 1,941.80 1,001.00
From banks - packing credit 1,000.00 - Others 113.97 91.90
- working capital demand loan - 8,850.00 2,191.42 1,092.90
1,004.85 11,180.69
B21 PROVISIONS
* Cash credits, packing credits and working capital demand loans are repayable on demand. The interest rate on these loans are in the range of 3.00
% p.a. to 9.00 % p.a. (6.00% p.a. to 9.00 % p.a) ` Million
As on As on
** Secured by a first charge on raw materials, work-in-progress, stocks, stores and book debts and by a second charge on the Company’s land at village March 31, 2021 March 31, 2020
Kodakara in Kerala, at Oragadam and Mathur village in Tamil Nadu and at head office in Gurgaon, Haryana together with the factory buildings, Provision for constructive liability (refer note C 6) 53.93 51.99
plant and machinery and equipment, both present and future.
Provision for compensated absences (refer note C 6) 233.32 227.02
Provision for superannuation (refer note C 6) 31.37 28.02
B18 TRADE PAYABLES * Provision for contingencies (refer note C 6) 425.00 425.00
` Million Provision for gratuity (refer note C 9) 81.47 -
As on As on Provision for sales related obligations (refer note C 6) 1,098.28 1,069.88
March 31, 2021 March 31, 2020 1,923.37 1,801.91
Trade payables (other than micro and small enterprises) 13,149.05 10,098.26
Employee related payable 1,380.44 1,173.51
Payable to related parties (refer note C 20) 4,134.06 4,664.60
18,663.55 15,936.37
* Trade payables include commission on net profits payable to whole-time directors ` 561.19 Million (` 217.26 Million).

176 Apollo Tyres Ltd Annual Report 2020-21 177

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

` Million
B22 CURRENT TAX LIABILITIES (NET)
Year ended Year ended
` Million March 31, 2021 March 31, 2020
As on As on
Other expenses: *
March 31, 2021 March 31, 2020
Consumption of stores and spare parts 837.94 900.98
Provision for taxation 23,245.35 21,340.96 Power and fuel 3,801.97 3,469.33
Advance tax (22,537.48) (20,781.45) Conversion charges 723.76 632.55
707.87 559.51 Repairs and maintenance
- Machinery 226.00 259.54
- Buildings 38.39 8.85
B23 OTHER OPERATING INCOME - Others 1,662.79 1,609.00
Rent (refer note C 5) 18.17 22.69
` Million Insurance 272.89 292.06
As on As on Rates and taxes 72.01 64.51
March 31, 2021 March 31, 2020
Sitting fees to non-executive directors (refer note C 20) 5.77 8.05
Investment promotion subsidy {refer note C 8(a)} 1,765.71 87.15 Commission to non-executive directors (refer note C 20) 45.00 40.00
Unwinding of deferred income {refer note C 8(b)} 1,572.57 1,735.41 Travelling, conveyance and vehicle expenses 584.76 1,553.87
Postage, telephone and stationery 80.54 98.31
Sale of raw material scrap 376.28 396.67
Conference 15.59 173.26
Others 74.33 136.98 Royalty (refer note C 20) 41.22 47.83
3,788.89 2,356.21 Freight and forwarding 4,254.00 3,923.68
Commission on sales 104.38 130.08
Sales promotion 367.94 537.17
B24 OTHER INCOME Advertisement and publicity 1,759.22 2,513.84
` Million
Corporate social responsibility (refer note C 19) 129.91 183.70
Bank charges 31.92 37.51
As on As on
March 31, 2021 March 31, 2020 Statutory auditors’ remuneration (refer note C 13) 12.49 13.00
Legal and professional 947.69 1,074.13
(a) Interest income Miscellaneous # 2,446.79 2,461.25
- Bank deposits 624.63 1.87 18,481.14 20,055.19
- Other financial assets measured at amortised cost* 191.42 28.71 96,921.63 95,563.12
- Others 0.15 816.20 7.43 38.01 * Includes expense towards research and development.
(b) Dividend income from investments - Fair value # Includes donation to electoral trust ` Nil (`300 Million)
through profit and loss
Mutual funds 2.88 2.67 B26 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
(c) Others ` Million
Profit on sale of property, plant and equipment (net) 20.34 0.32 Year ended Year ended
Gain on foreign currency transactions and 213.79 112.41 March 31, 2021 March 31, 2020
translations (net) OPENING STOCK
Miscellaneous 162.02 396.15 132.67 245.40 Work in progress 1,252.70 1,415.13
1,215.23 286.08 Finished goods 8,038.39 8,862.30
Stock-in-trade 1,097.10 1,239.04
* This includes Government grant. Refer note (C 8 (a)) 10,388.19 11,516.47
Less:
B25 MANUFACTURING AND OTHER EXPENSES CLOSING STOCK
Work in progress 1,663.64 1,252.70
` Million
Finished goods 7,634.31 8,038.39
Year ended Year ended
Stock-in-trade 1,021.09 1,097.10
March 31, 2021 March 31, 2020
10,319.04 10,388.19
Cost of materials consumed * 69.15 1,128.28
Opening stock 5,610.22 7,404.73
Add: Purchases 64,804.22 58,934.99
B27 FINANCE COSTS
Less: Closing stock 8,031.27 5,610.22
` Million
62,383.17 60,729.50
Year ended Year ended
Purchase of stock-in-trade: March 31, 2021 March 31, 2020
Purchase of finished goods - tyres, tubes and flaps 6,948.31 6,517.26 (a) Interest expense:
Employee benefits expense: * Interest on fixed-term loans 1,095.93 159.91
Salaries and wages 7,581.40 6,819.60 Interest on debentures 1,217.34 575.22
Contribution to provident and other funds 499.38 411.88 Interest on current loans 388.97 430.04
Staff welfare expenses 1,028.23 1,029.69 Others * 1,046.14 1,048.13
9,109.01 8,261.17
(b) Other borrowing costs 45.76 43.66
3,794.14 2,256.96

* Includes interest expense pertaining to leasing arrangements. Refer note C5

178 Apollo Tyres Ltd Annual Report 2020-21 179

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

C. OTHER NOTES
forming Part of the Consolidated Financial Statements

1 DIRECTLY ATTRIBUTABLE EXPENSES CAPITALIZED / INCLUDED IN CAPITAL WORK IN PROGRESS iv Lease liabilities are presented in the statement of financial position as follows:
` Million
` Million
As on As on
Year ended Year ended Particulars
Particulars March 31, 2021 March 31, 2020
March 31, 2021 March 31, 2020
Non current 4,651.60 5,292.86
Raw material consumed 61.39 22.95
Current 699.47 844.94
Salaries, wages and bonus 219.17 352.22
Total 5,351.07 6,137.80
Welfare expenses 41.17 22.61
Rent 1.49 11.18
Travelling, conveyance and vehicle expenses 7.16 36.22
v Future minimum lease payments are as follows:
Postage, telephone and stationery 1.30 6.66 ` Million
Particulars As on March 31, 2021 As on March 31, 2020
Power and fuel 106.15 22.77
Minimum lease
Insurance 12.71 7.37 payments due
Lease payments Finance charges Net present values Lease payments Finance charges Net present values
Legal and professional 4.77 64.80 Within 1 year 1,093.54 (394.07) 699.47 1,289.84 (444.90) 844.94
Miscellaneous. 51.13 26.02 1-2 years 966.26 (341.28) 624.98 1,102.25 (384.14) 718.11
Total 506.44 572.80 2-3years 866.82 (294.86) 571.96 966.22 (330.74) 635.48
3-4 years 785.49 (249.97) 535.52 854.93 (283.48) 571.45
2 Borrowing costs capitalized / transferred to capital work in v. Capital subsidy 4-5 years 738.71 (207.56) 531.15 759.00 (240.06) 518.94
progress during the year is ` 849.92 Million (` 1,349.26 Million)  his balance represents subsidy received under New
T After 5 years 2,780.13 (392.14) 2,387.99 3,416.61 (567.73) 2,848.88
Total 7,230.95 (1,879.88) 5,351.07 8,388.85 (2,251.05) 6,137.80
and the capitalisation rate used to determine the amount of Industrial Policy 2007 of the Government of Tamil
borrowing costs to be capitalised is the weighted average Nadu for expansion and employment generation within
vi Lease payments not recognised as a liability
interest rate applicable to the Company’s general borrowings SIPCOT Industrial park.
The expense relating to payments not included in the measurement of the lease liability is as follows:
during the year, in this case 7.93% p.a. (7.38% p.a.).
vi. Capital redemption reserve ` Million
3 INVENTORIES This balance has been created in accordance with Particulars
As on As on
March 31, 2021 March 31, 2020
i.  ut of the total inventories ` 20,766.00 Million
O provision of the Act for the buy back of equity shares
Short term leases 18.17 22.69
(` 18,082.51 Million), the carrying amount of inventories from the market.
Leases of low value assets - -
carried at fair value less costs to sell amounted to
vii. Capital reserve on forfeiture of shares Variable lease payments - -
` 654.46 Million (`140.06 Million).
 his reserve was created on forfeiture of shares by
T Total 18.17 22.69
ii.  he amount of write-down of inventories to net realizable
T the Company. The reserve is not available for the
value recognized as an expense was ` 144.56 Million distribution to the shareholders. vii Changes in the carrying value of right-of-use assets by class of assets is as follows:
(` 124.72 Million). ` Million
viii. Retained earnings
Plant and
iii. T
 he cost of inventories recognised as an expense  etained earnings are created from the profit of the
R Building Total
equipment
during the year in respect of continuing operations was Company, as adjusted for distribution to owners, Gross carrying value
` 70,238.57 Million (` 69,276.02 Million). transfer to other reserve, remeasurement of defined As on April 01, 2020 7,150.59 155.42 7,306.01
Additions 195.97 - 195.97
benefit plan, etc.
Disposals 492.68 - 492.68
4 DESCRIPTION OF NATURE AND PURPOSE OF EACH As on March 31, 2021 6,853.88 155.42 7,009.30
RESERVE 5 LEASES Accumulated depreciation
i. Securities premium reserve i Nature of leasing activities As on April 01, 2020 1,056.36 39.92 1,096.28
Depreciation expense 985.22 49.09 1,034.31
S ecurities premium reserve is used to record the The Company has entered into lease arrangements for
Eliminated on disposal 366.21 - 366.21
premium on issue of shares. The reserve will be utilised various warehouses, plant and equipments, and offices As on March 31, 2021 1,675.37 89.01 1,764.38
in accordance with provisions of the Act. that are renewable on a periodic basis with approval of both Net carrying value
lessor and lessee. As on March 31, 2021 5,178.51 66.41 5,244.92
ii. General reserve
G eneral reserve is created from time to time by way ii  he Company does not have any lease commitments
T ` Million
of transfer of profits from retained earnings for towards variable rent as per the contract. Building
Plant and
Total
equipment
appropriation purpose. General reserve is created by
iii Each lease generally imposes a restriction that, unless there Gross carrying value
transfer from one component of equity to another and As on April 01, 2019 - - -
is a contractual right for the Company to sublet the asset
is not an item of other comprehensive income. Additions 7,289.80 155.42 7,445.22
to another party, the right-of-use asset can only be used
Disposals 139.21 - 139.21
iii. Capital reserve on Apollo (Mauritius) Holdings by the Company. Leases are either non-cancellable or may As on March 31, 2020 7,150.59 155.42 7,306.01
Private Limited (“AMHPL”) merger only be cancelled by incurring a substantive termination Accumulated depreciation
 MHPL erstwhile (subsidiary company) was merged
A fee. The Company is prohibited from selling or pledging the As on April 01, 2019 - - -
Depreciation expense 1,093.32 39.92 1,133.24
with the Company resulting in a capital reserve. underlying leased assets as security. For leases over office
Eliminated on disposal 36.96 - 36.96
buildings and factory premises the Company must keep As on March 31, 2020 1,056.36 39.92 1,096.28
iv. Debenture redemption reserve those properties in a good state of repair and return the Net carrying value
The Company is required to create a debenture properties in their original condition at the end of the lease. As on March 31, 2020 6,094.23 115.50 6,209.73
redemption reserve out of the profits which are available The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the statement of
for redemption of debentures. Profit and Loss.

180 Apollo Tyres Ltd Annual Report 2020-21 181

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

viii The following are the amounts recognised in statement of profit and loss ii. Components of deferred tax liability (net)
` Million ` Million
Year ended Year ended As on March 31, 2021 As on March 31, 2020
Particulars
March 31, 2021 March 31, 2020 Recognised Recognised Recognised Recognised
Depreciation expense of right-of-use assets 1,034.31 1,133.24 Particulars Opening in statement in other Closing Opening in statement in other Closing
Balance of Profit and comprehensive Balance Balance of Profit and comprehensive Balance
Interest expense on lease liabilities 442.99 499.75 Loss income Loss income
COVID 19 related rent concessions (11.00) - Tax effect of items constituting
Interest income on fair value of security deposit (28.64) (28.71) deferred tax liabilities
Expense relating to short-term leases (included in other expenses) 18.17 22.69 Employee benefits 26.62 - 24.35 50.97 26.62 - - 26.62
Total 1,455.83 1,626.97 Depreciation and amortisation 10,081.87 2,384.32 - 12,466.19 8,188.16 1,893.71 - 10,081.87
Others 676.48 29.08 8.91 714.47 514.28 162.20 - 676.48
ix Total Cash outflow pertaining to leases during the year ended March 31, 2021 is ` 1,269.98 Million (` 1,358.86 Million). Gross deferred tax liabilities (a) 10,784.97 2,413.40 33.26 13,231.63 8,729.06 2,055.91 - 10,784.97
x A s on March 31, 2021 Company has committed short term leases and total commitment at that date is ` 1.34 Million Tax effect of items constituting
deferred tax assets
(`7.79 Million).
Employee benefits 298.12 28.60 - 326.72 203.72 8.65 85.75 298.12
Provision for doubtful debts / advances 141.89 - - 141.89 141.89 - - 141.89
6 PROVISIONS - NON CURRENT / CURRENT
Minimum alternate tax entitlement 3,179.33 1,905.21 - 5,084.54 2,152.77 1,026.56 - 3,179.33
` Million Carry forward of losses 1,135.68 (1,119.71) - 15.97 - 1,135.68 - 1,135.68
Non current Current Others 717.26 211.51 - 928.77 476.08 183.97 57.21 717.26
Particulars Provision for Provision for Provision for Provision for Provision for
Provision for Provision for Gross deferred tax assets (b) 5,472.28 1,025.61 - 6,497.89 2,974.46 2,354.86 142.96 5,472.28
sales related constructive compensated sales related constructive
contingencies superannuation
obligation * liability** absences obligation * liability**
As on March 31, 2019 329.53 169.29 208.59 950.78 50.42 425.00 25.00 Net deferred tax liability (a - b) 5,312.69 1,387.79 33.26 6,733.74 5,754.60 (298.95) (142.96) 5,312.69
Addition during the year - 15.00 227.02 1,069.88 51.99 - 103.69
Utilisation/ reversal during the year 10.50 - 208.59 950.78 50.42 - 100.67 iii. P
 ursuant to the Taxation Laws (Amendment) Ordinance, income of ` 1,606.97 Million (` 87.15 Million) as other
As on March 31, 2020 319.03 184.29 227.02 1,069.88 51.99 425.00 28.02 2019 issued on September 20, 2019, corporate assesses operating income, being the eligible amount of refund of Net
Addition during the year - - 233.32 1,098.28 53.93 - 117.83 have been given the option to apply lower income tax Output (VAT + CST) / SGST paid by the Company to GoTN.”
Utilisation/ reversal during the year 5.40 3.17 227.02 1,069.88 51.99 - 114.48 rate with effect from April 01, 2019, subject to certain
I n addition to above, the Company is entitled, for refund of
As on March 31, 2021 313.63 181.12 233.32 1,098.28 53.93 425.00 31.37 conditions specified therein. The Company has carried out
an amount equal to 1% of the capital investment for a period
an evaluation and based on its forecasted profits, believes
* Represents estimates for payments to be made in future for sales related obligations (including warranties). of 12 years to be payable in equal annual instalments in the
it will not be beneficial for the Company to choose the lower
** Includes post-employment benefit obligation for the employees of related party engaged at its Kalamassery plant taken on lease. form of Investment Promotion Capital Subsidy (referred to
tax rate option in the near future. Accordingly, no effect
as Phase II). Accordingly, the Company has recognised grant
in this regard has been considered in measurement of tax
7 INCOME TAXES receivable at its fair value, amounting to ` 1,811.72 Million
expense for the year ended March 31, 2021 and March 31,
under non-current financial assets and ` 385.80 Million under
i. Reconciliation between average effective tax rate and applicable tax rate 2020.
current financial assets. Deferred grant income amounting
Year ended March 31, 2021 Year ended March 31, 2020 M anagement, however, will continue to review its ` 1,763.44 Million is recognised under other non-current
Particulars
` Million Rate (%) ` Million Rate (%) profitability forecast at regular intervals and make necessary liabilities and ` 135.65 Million under other current liabilities.
Profit before tax 10,520.39 5,813.85 adjustments to tax expense when there is reasonable Deferred income will be recognised in the statement of profit
Income tax using the Company's domestic tax rate 3,676.25 34.94% 2,031.36 34.94% certainty to avail the beneficial (lower) rate of tax. or loss on a systematic basis over the useful life of the asset
Tax effect of : (15 years). During the year, the Company has recorded
iv. The Company has concluded that the deferred tax assets will
Non deductible expenses 172.57 1.64% 228.52 3.93% grant income amounting to ` 135.65 Million (` Nil) under
be recoverable using the estimated future taxable income
Tax exempt income (556.64) -5.29% (608.06) -10.46% Other operating income and accretion of grant recoverable
Tax incentives and concessions - 0.00% (924.21) -15.90%
based on the business plans and budgets for the Company.
as finance income amounting to ` 162.78 million (` Nil)
Income tax expenses recognised in the statement 3,292.18 31.29% 727.61 12.52% under Other income.
of profit and loss 8 GOVERNMENT GRANTS
 lso, the Government of Andhra Pradesh (GoAP) has
A
(a) Investment promotion subsidy
sanctioned a structured package of assistance to the
 he Government of Tamil Nadu (GoTN) has sanctioned
T
Company for setting up of their project in the state of
a structured package of assistance to the Company for
Andhra Pradesh, pursuant to which a Memorandum of
setting up/expansion of their project in the state of Tamil
Understanding (MoU) executed between GoAP and the
Nadu, pursuant to which a Memorandum of Understanding
Company. The Company is entitled, interalia, for refund
(MoU) executed between GoTN and the Company.
of an amount equal to Net SGST paid by the Company to
The Company is entitled, interalia, for refund of an amount GoAP in the form of Investment Promotion Subsidy. As the
equal to Net Output (VAT + CST)/SGST paid by the Company Company has fulfilled the relevant obligations, the Company
to GoTN in the form of Investment Promotion Subsidy has recognized subsidy income of ` 23.09 Million (` Nil) as
(referred to as Phase I). As the Company has fulfilled the other operating income, being the eligible amount of refund
relevant obligations, the Company has recognized subsidy of Net SGST paid by the Company to GoAP.

182 Apollo Tyres Ltd Annual Report 2020-21 183

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

(b) Export Promotion Capital Goods expense in the year incurred. The amount of contribution paid Changes in the present value of the defined benefit obligation
The Company had imported Property, plant and equipment by the Company to Superannuation Fund is ` 117.83 Million ` Million
under the Export Promotion Capital Goods (EPCG) scheme (` 103.69 Million). Particulars
As on As on
March 31, 2021 March 31, 2020
wherein the Company is allowed to import capital goods
b. Provident fund: Contributions are made to the Company’s Present value of obligations as at the beginning of the year 1,746.95 1,162.30
including spares without payment of customs duty, subject
employees’ provident fund trust / regional provident fund Interest cost 102.99 88.92
to certain export obligations which should be fulfilled
in accordance with the fund rules. The interest rate payable Current service cost 363.11 360.25
within specified time period. During the year, the custom
to the beneficiaries every year is being notified by the Benefits paid (57.79) (94.92)
duty benefit received amounts to ` 1,202.01 Million Actuarial (gain)/loss on obligation (71.35) 230.40
Government.
(` 2,531.28 Million ) with a corresponding increase in the Present value of obligations as at the end of the year 2,083.91 1,746.95
value of property, plant and equipment and Capital Work In the case of contributions to the trust, the Company has
in Progress. The grant amounting to ` 1,572.57 Million an obligation to make good the shortfall, if any, between
Changes in the fair value of plan assets
(` 1,735.41 Million) where export obligations have been the return from the investments of the trust and the notified
` Million
met, have been recognized in Statement of Profit and Loss as interest rate and recognises such obligation as an expense.
As on As on
other operating income. At the year end, the portion of grant Particulars
March 31, 2021 March 31, 2020
The amount of contributions made by the Company to
for which the export obligation has not been met is retained Fair value of plan assets at beginning of the year 1,946.22 1,206.66
employees’ provident fund trust / regional provident fund is
in deferred revenue under other non current liabilities. Actual return on plan assets 98.73 77.31
` 298.41 Million (`308.19 Million).
Contributions 16.95 772.17
9 EMPLOYEE BENEFIT LIABILITY Benefits paid (57.79) (94.92)
B. Defined benefit plans Actuarial loss on plan assets (1.67) (15.00)
A. Defined contribution plans Gratuity Fair value of plan assets as at the end of the year 2,002.44 1,946.22
a. Superannuation plan: The Company contributes a sum  he Company operates a defined benefit gratuity plan.
T
equivalent to 15% of the eligible employees’ basic salary to Every employee who has completed five years or more of The Company’s gratuity funds are managed by the LIC and therefore the composition of the fund assets is not presently ascertained.
a superannuation fund administered and maintained by the service receives gratuity on leaving the Company as per the
Life Insurance Corporation of India (LIC). The Company has Payments of Gratuity Act, 1972. The scheme is funded with Maturity Profile of Defined Benefit Obligation
no liability for future superannuation fund benefits other than LIC. ` Million
its annual contribution and recognizes such contributions as an Particulars
As on As on
March 31, 2021 March 31, 2020
0 to 1 year 191.51 179.02
 he following table summarizes the components of net benefit expense recognized in the Statement of Profit and Loss and the
T 1 to 2 year 62.76 63.86
funded status and amounts recognized in the balance sheet for the respective plan: 2 to 3 year 68.88 62.70
3 to 4 year 87.11 65.81
Statement of profit and loss: 4 to 5 year 86.43 70.90
` Million More than 5 years 1,587.22 1,304.66
Year ended Year ended Total 2,083.91 1,746.95
Particulars
March 31, 2021 March 31, 2020
Current service cost ^ 363.11 360.25
Principal assumptions for gratuity
Interest cost on benefit obligation * 102.99 88.92
Actual return on plan assets* (98.73) (77.31)
As on As on
Expense recognized in the statement of profit and loss 367.37 371.86 Particulars March 31, 2021 March 31, 2020
Rate (%) Rate (%)
^ Included in employee benefit expense
a) Discount rate 6.91 6.88
* Included in finance cost
b) Future salary increase* 6.00 6.00
c) Expected rate of return on plan assets 6.95 7.43
Other comprehensive income (experience adjustment)
d) Retirement age (years) 58.00 58.00
` Million
e) Mortality table IALM (2012-2014) IALM (2012-2014)
Year ended Year ended
Particulars f) Ages (withdrawal rate %)
March 31, 2021 March 31, 2020
Actuarial (gain)/loss for the year on defined benefit obligation (71.35) 230.40 Up to 30 Years 3.00 3.00
Actuarial loss for the year on plan asset 1.67 15.00 From 31 to 44 Years 2.00 2.00
Total (69.68) 245.40 Above 44 Years 1.00 1.00
* The estimates of future salary increase take into account inflation, seniority, promotion and other relevant factors.
Balance sheet: Estimated amount of contribution in the immediate next year is ` 125.25 Million (` 123.32 Million).
Net (liability) / asset recognised in the balance sheet
` Million
As on As on
Particulars
March 31, 2021 March 31, 2020
Fair value of plan assets at the end of the year (a) 2,002.44 1,946.22
Present value of defined benefit obligation at the end of the year (b) 2,083.91 1,746.95
Net (liability) / asset recognized in the balance sheet (a - b) (81.47) 199.27

184 Apollo Tyres Ltd Annual Report 2020-21 185

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Sensitivity analysis of the defined benefit obligation B. Financial risk management

` Million a. Market risk
Impact of change in Discount rate Salary increase Attrition rate The Company’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates and changes in
Present value of obligation as on March 31, 2021 2,083.91 2,083.91 2,083.91 interest rates. The Company enters into a variety of derivate financial instrument to manage its exposure to foreign currency
Impact due to increase of 0.50% (72.15) 78.66 0.50 and interest rates. There have been no changes to the Company’s exposure to market risk or the manner in which it manages
Impact due to decrease of 0.50% 78.34 (73.07) (0.40) and measures the risk in recent past.

` Million
i) Currency risk
Impact of change in Discount rate Salary increase Attrition rate
The Company’s exposure arises mainly on import (of raw material and capital items) and export (of finished goods). The Company
Present value of obligation as on March 31, 2020 1,746.95 1,746.95 1,746.95
follows a policy of matching of import and export exposures (natural hedge) to reduce the net exposure in any foreign currency.
Impact due to increase of 0.50% (69.34) 75.62 (9.92)
Impact due to decrease of 0.50% 75.34 (70.21) 10.67 Whenever the natural hedge is not available or is not fully covering the foreign currency exposure of the Company, management
uses certain derivative instruments to manage its exposure to the foreign currency risk. Foreign currency transactions are
managed within approved policy parameters.
C. Other long term employee benefits
Long term compensated absences
Currency wise net exposure of the Company
Principal assumptions for long term compensated absences
` Million
As on As on
As on As on Currency Sensitivity + 1% Sensitivity -1% Sensitivity + 1% Sensitivity -1%
March 31, 2021 March 31, 2020
Particulars March 31, 2021 March 31, 2020
Rate (%) Rate (%) USD (13,511.70) (135.12) 135.12 (14,442.59) 98.73 (98.73)
a) Discount rate 6.91 6.88 Euro (360.64) (3.61) 3.61 (861.13) (8.61) 8.61
b) Future salary increase* 6.00 6.00 GBP (76.49) (0.76) 0.76 (85.32) (0.85) 0.85
c) Retirement age (years) 58.00 58.00 Others 471.03 4.71 (4.71) 203.21 2.03 (2.03)
d) Mortality table IALM (2012-2014) IALM (2012-2014)
e) Ages (withdrawal rate %) ii) Interest rate risk
Up to 30 Years 3.00 3.00 The Company is exposed to interest rate risk as the Company borrows funds at both fixed and floating interest rates. The risk is
From 31 to 44 Years 2.00 2.00 managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings. The use of interest
Above 44 Years 1.00 1.00 rate swaps are also entered into, especially to hedge the floating rate borrowings or to convert the foreign currency floating
interest rates to the domestic currency floating interest rates.
* The estimates of future salary increase take into account inflation, seniority, promotion and other relevant factors.
I nterest on variable rate borrowings are converted at fixed rate since company has hedged interest rate risk fully and effectively
10 FINANCIAL INSTRUMENT with the hedging instruments.

A. Capital risk management

b) Credit risk
 he capital structure of the Company consists of debt, cash and cash equivalents and equity attributable to equity shareholders
T
 redit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The
C
of the Company which comprises issued share capital (including premium) and accumulated reserves disclosed in the Statement
Company has adopted a policy of only dealing with creditworthy customers.
of Changes in Equity.
I n many cases an appropriate advance or letter of credit / bank guarantee is taken from the customers to cover the risk. In other
 he Company’s capital management objective is to achieve an optimal weighted average cost of capital while continuing to
T
cases credit limit is granted to customer after assessing the credit worthiness based on the information supplied by credit rating
safeguard the Company’s ability to meet its liquidity requirements (including its commitments in respect of capital expenditure)
agencies, publicly available financial information or its own past trading records and trends.
and repay loans as they fall due.
At the year end, the Company did not consider there to be any significant concentration of credit risk which had not been
 he Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
T
adequately provided for. The carrying amount of the financial assets recorded in the financial statements, grossed up for any
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
allowances for losses, represents the maximum exposure to credit risk.
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is debt divided by total equity. The Company’s policy is to keep an optimum gearing ratio. The Company includes
c) Liquidity risk
within debt, interest bearing loans and borrowings.
 he Company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring
T
` Million forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities for the Company.
Particulars
As on As on The Company has established an appropriate liquidity risk management framework for it’s short term, medium term and long
March 31, 2021 March 31, 2020
term funding requirement.
Borrowings (refer note B13 and B17) 37,609.16 43,263.93
Current maturities of non current borrowings (refer note B19) 5,856.14 671.42 The below tables summarise the maturity profile of the Company’s financial assets and financial liabilities
Sub total (a) 43,465.30 43,935.35
Equity (refer note B12) 635.10 572.05 i. Non derivative financial assets
Other equity 94,090.51 76,349.42 ` Million
Sub total (b) 94,725.61 76,921.47 As on March 31, 2021 As on March 31, 2020
Capital gearing ratio ((a) / (b)) 0.46 0.57 Particulars Less than 1 year 5 years and 5 years and
1 to 5 years Less than 1 year 1 to 5 years
above above
Non-interest bearing 12,784.04 1,188.25 25,621.65 6,262.98 582.01 24,338.97
Fixed interest rate instruments 12,304.74 - - 600.01 - -

186 Apollo Tyres Ltd Annual Report 2020-21 187

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

ii. Non derivative financial liabilities e) Details of outstanding contracts #

` Million
Currency value Nominal value
As on March 31, 2021 As on March 31, 2020 Currency pair Currency Exchange rate Buy/Sell
(Million) (Million)
Particulars Less than 5 years Less than 5 years
1 to 5 years 1 to 5 years As on March 31, 2021
1 year and above 1 year and above
Non-interest bearing 29,423.43 - - 24,078.38 - - Foreign currency forward contracts
Variable interest rate instruments 7,266.78 10,466.27 6,445.69 1,360.07 14,126.86 7,177.78 USD / INR US Dollar 32.18 73.12 2,352.77 Buy
Lease liability 699.47 2,263.61 2,387.99 844.95 2,443.98 2,848.87 USD / THB US Dollar 6.00 31.25 187.47 Buy
Fixed interest rate instruments 1,059.88 13,551.55 6,140.80 11,186.61 8,564.33 2,214.26 USD / ZAR US Dollar 1.13 14.77 16.62 Buy
EUR / INR Euro 21.06 85.83 1,807.77 Buy
Futures and options
iii. Derivative assets / (liabilities)
USD / INR US Dollar 39.00 73.12 2,851.49 Buy
` Million
Cross currency interest swaps
As on March 31, 2021 As on March 31, 2020
Particulars USD / INR US Dollar 160.13 73.12 11,707.90 Buy
Less than 5 years Less than 5 years
1 to 5 years 1 to 5 years
1 year and above 1 year and above As on March 31, 2020
Net settled: Foreign currency forward contracts
Foreign currency forward contracts, (16.74) (30.72) - (0.44) (26.59) - USD / INR US Dollar 25.81 75.58 1,950.65 Buy
futures and options USD / THB US Dollar 6.00 32.84 197.03 Buy
Foreign currency forward contracts, 31.75 3.47 - 53.25 76.82 - USD / ZAR US Dollar 2.25 17.89 40.26 Buy
futures and options EUR / INR Euro 30.99 83.14 2,576.16 Buy
Gross settled: Futures and options
Cross currency interest rate swaps - 972.14 - - 1,423.51 - USD / INR US Dollar 19.00 75.58 1,436.02 Buy
Total 15.01 944.89 - 52.81 1,473.74 - Cross currency interest swaps
USD / INR US Dollar 168.94 75.58 12,768.39 Buy
d) The below tables summarise the fair value of the financial assets / liabilities
# For fair value of outstanding contracts, refer note C10 (d)(i).
i. Fair value of derivative instruments carried at fair value
f) Impact of hedging activities
` Million

Particulars
As on As on Fair value hierarchy (1) Disclosures of effects of hedge accounting on balance sheet:
March 31, 2021 March 31, 2020 (Level 1, 2 or 3) *
Derivative financial assets (a) Carrying amount of hedging
Change in
Change in value of
instruments (` Million) hedged item used
- Foreign currency forward contracts, futures and options 35.22 130.07 2 Notional
Hedge Strike price
fair value
as the basis for
Type of hedge and risks amount Maturity dates of hedging
- Cross currency interest rate swaps 972.14 1,423.51 2 (Million)
ratio range
instruments
recognising hedge
Assets Liabilities effectiveness
Total 1,007.36 1,553.58 (` Million)
(` Million)
As on March 31, 2021
Derivative financial liabilities (b)
Cash flow hedge
- Foreign currency forward contracts 47.46 27.03 2
Foreign exchange
Total 47.46 27.03
and interest rate risk
Cross Currency Swaps
Net derivate financial assets (a - b) 959.90 1,526.55 USD / INR USD 972.14 - April-2022 to 1:1 63.95 to (987.35) 987.35
160.13 September-2024 68.60
ii. Fair value of financial assets (other than derivative instruments) carried at fair value
` Million Fair value hedge
As on As on Fair value hierarchy Foreign exchange risk
Particulars
March 31, 2021 March 31, 2020 (Level 1, 2 or 3) * Foreign currency
Financial assets forward contracts
– Non current investments - quoted 1.20 0.42 1 EUR / INR EUR 0.54 (30.72) April-2021 to 1:1 86.36 to (30.18) 30.18
– Non current investments - unquoted 74.07 73.83 3 21.06 May-2021 89.16
– Current investments - quoted 900.68 - 1 USD/INR USD 2.93 - Apr-21 1:1 73.15 to 2.93 (2.93)
Total 975.95 74.25 16.18 73.17
(Carrying value of firm commitments for capital assets is ` 27.25 million and is recognised in other non-current assets as others)
iii. Fair value of financial assets / liabilities (other than investment in subsidiaries) that are not measured at fair value
The management considers that the carrying amount of financial assets and financial liabilities recognised at amortised cost
in the balance sheet approximates their fair value.

* Level 1 - Quoted price in an active market.

* Level 2 - Inputs other than quoted prices included within liability Level 1 that are observable or the asset or liability, either
directly or indirectly.

* Level 3 - Unobservable inputs for asset or liability.

188 Apollo Tyres Ltd Annual Report 2020-21 189

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Carrying amount of Change in value of

hedging instruments
Change in
hedged item used
(3) Movement in cash flow hedging reserve
Notional fair value
(` Million) Hedge Strike price as the basis for ` Million
Type of hedge and risks amount Maturity dates of hedging
ratio range recognising hedge
(Million) instruments Foreign currency and
Assets Liabilities effectiveness Particulars
(` Million) interest rate risk
(` Million)
Cash flow hedge reserve
As on March 31, 2020
Balance as on April 01, 2019 (7.41)
Cash flow hedge
Add: Changes in fair value of cross currency swaps 496.04
Foreign exchange
and interest rate risk Less: Amount reclassified to Profit and loss (659.75)
Cross Currency Swaps Less: Deferred tax relating to above (net) 57.21
USD / INR USD 168.94 1,423.51 - April-2022 to 1:1 69.17 to 496.04 (496.04) Balance as on March 31, 2020 (113.91)
September-2024 75.24 Add: Changes in fair value of cross currency swaps (987.35)
Fair value hedge Less: Amount reclassified to Profit and loss 1,012.86
Less: Deferred tax relating to above (net) (8.91)
Foreign exchange risk
Balance as on March 31, 2021 (97.31)
Foreign currency
forward contracts
EUR / INR EUR 30.99 37.26 (26.59) April-2020 to 1:1 82.20 to 10.67 (10.67) 11 (A) TURNOVER AND STOCK OF FINISHED GOODS AND STOCK IN TRADE
June-2020 88.90 ` Million
USD/INR USD 20.56 39.56 - April-2020 to 1:1 72.25 to 39.56 (39.56) Opening Stock Turnover Closing Stock
June-2020 75.04 Particulars As on As on Year ended Year ended As on As on
(Carrying value of firm commitments for capital assets is ` 50.22 million and is recognised in other non-current liabilities as others) April 1, 2020 April 1, 2019 March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Automobile tyres, 9,023.32 9,979.13 113,038.34 107,692.18 8,547.70 9,023.32
tubes and flaps
(2) Disclosure of effects of hedge accounting on statement of profit and loss Others 112.17 122.21 506.78 634.79 107.70 112.17
` Million
Change in value of
hedging instrument Hedge Amount reclassified
Total 9,135.49 10,101.34 113,545.12 108,326.97 8,655.40 9,135.49
Line item affected
Type of hedge recognised in other ineffectiveness from cash flow
on reclassification
comprehensive recognised hedge reserve
income (B) Raw materials consumed
For the year ended March 31, 2021 ` Million
Cash flow hedge Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Foreign exchange and interest rate risk (987.35) - (603.49) Finance Cost
Fabric 6,024.37 6,657.00
(409.37) Gain on foreign
Rubber 32,001.35 28,769.82
currency
transactions and Chemicals 6,944.22 6,991.80
translations Carbon black 8,036.74 9,430.13
Others 9,376.50 8,880.75
` Million Total 62,383.17 60,729.50
Change in value of
hedging instrument Hedge Amount reclassified
Type of hedge recognised in other ineffectiveness from cash flow
Line item affected on (C) Break-up of consumption
reclassification
comprehensive recognised hedge reserve
Year ended March 31, 2021 Year ended March 31, 2020
income Particulars
% ` Million % ` Million
For the year ended March 31, 2020
Raw material - Imported 31.31% 19,530.25 37.00% 22,471.34
Cash flow hedge
- Indigenous 68.69% 42,852.92 63.00% 38,258.16
Foreign exchange and interest rate risk 496.04 - (429.43) Finance Cost
100.00% 62,383.17 100.00% 60,729.50
1,089.18 Gain on foreign
currency Stores and spares - Imported 8.57% 71.80 7.11% 64.10
transactions and - Indigenous 91.43% 766.14 92.89% 836.88
translations 100.00% 837.94 100.00% 900.98
Fair value hedge
Foreign exchange risk - 0.63 - Gain on foreign (D) C.I.F. value of imports
currency
` Million
transactions and
Year ended Year ended
translations Particulars
March 31, 2021 March 31, 2020
Raw material 20,620.47 21,266.05
Stores and spares 105.26 111.41
Capital goods 3,767.74 13,351.81

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Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

(E) Expenditure in foreign currency (remitted) 16 CAPITAL AND OTHER COMMITMENTS

(Excluding value of imports)
` Million
` Million Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020 A Capital commitments
Interest 787.97 831.08 Estimated amount of contracts remaining to be executed on capital account and not provided for 6,257.69 19,115.04
Royalty 28.46 49.28 B Other commitments
Others (including cross-charge of research and development expenses and management expenses 3,071.94 3,700.94 Corporate guarantee given* (refer note C 24) 6,179.76 5,985.86
paid to foreign subsidiary companies)
*The company has provided corporate guarantee on behalf of its wholly owned subsidiary Apollo Tyres Cooperatief U.A..

12 EARNINGS IN FOREIGN EXCHANGE (GROSS)

17 The Company conducts international transactions with associated enterprises. For the current year, the management maintained
` Million
necessary documents as prescribed by the Income tax Act, 1961 to establish that these international transactions are at arm’s
Year ended Year ended
Particulars length and the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax
March 31, 2021 March 31, 2020
FOB value of exports 10,132.43 11,169.91 expense and that of provision for taxation.
Royalty received 51.31 62.90
Cross charge of management expenses 298.96 161.02 18 DISCLOSURES REQUIRED UNDER SECTION 22 OF THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT
Reimbursement of expenses received 495.76 516.29 ACT, 2006

` Million
13 STATUTORY AUDITORS’ REMUNERATION
As on As on
Particulars
March 31, 2021 March 31, 2020
` Million
(i) Principal amount remaining unpaid to any supplier as at the end of the accounting year 815.31 247.45
Year ended Year ended
Particulars (ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year 10.58 10.58
March 31, 2021 March 31, 2020
For audits and quarterly reviews 9.50 9.50 (iii) The amount of interest paid along with the amounts of the payment made to the supplier - -
For other services 2.99 3.50 beyond the appointed day
Total 12.49 13.00 (iv) The amount of interest due and payable for the year - -
(v) The amount of interest accrued and remaining unpaid at the end of the accounting year 10.58 10.58
14 RESEARCH AND DEVELOPMENT EXPENDITURE (vi) The amount of further interest due and payable even in the succeeding year, until such date 10.58 10.58
when the interest dues as above are actually paid
` Million
Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information
Year ended Year ended
Particulars collected by the Management. This has been relied upon by the auditors.
March 31, 2021 March 31, 2020
(A) Revenue expenditure
Materials 9.45 3.10 19 EXPENDITURE TOWARDS CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES -
Employee benefits expense 413.26 392.76
In accordance with the provisions of section 135 of the Act, the Board of Directors of the Company had constituted a CSR
Travelling, conveyance and vehicle expense 32.21 110.57
committee. The details for CSR activities are as follows:
Others 960.39 1,047.59
Total 1,415.31 1,554.02 ` Million
(B) Capital expenditure 403.89 400.17 Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Total (A+B) 1,819.20 1,954.19
i) Gross amount required to be spent by the Company during the year 153.19 183.70
ii) Amount spent during the year on the following:
15 CONTINGENT LIABILITIES
(a) Construction/acquisition of any asset - -
` Million (b) On purposes other than (a) above 129.91 183.70
Year ended Year ended iii) Amount unspent during the year and deposited in a scheduled bank 23.28 -
Particulars
March 31, 2021 March 31, 2020 Total 153.19 183.70
Sales tax 118.36 417.30
Income tax # 1,470.70 708.90
Claims against the Company not acknowledged as debts – employee related 167.10 166.31
– others 28.60 29.30
Excise duty, custom duty and service tax * 641.70 626.23

# Excludes amount of ` 1,039.46 Million (` 1,039.46 Million) in appeals which have been decided by Appellate authorities in the
Company’s favour but on which the department has gone for further appeal, which in the opinion of the Company, is not sustainable and the probability
of cash outflow is considered remote.
* 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 ground that there are fair chances
of successful outcome of appeals.

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Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Particulars Year ended March 31, 2021 Year ended March 31, 2020
20 DISCLOSURE OF RELATED PARTY TRANSACTIONS IN ACCORDANCE WITH IND AS 24 - RELATED PARTY
Associates N.A Pressurerite (Pty) Limited, South Africa (note (E))
DISCLOSURES
KT Telematic Solutions Private Limited KT Telematic Solutions Private Limited
Name of the Related Parties Joint venture PanAridus LLC, USA (JV through ATHS) (note(d)) PanAridus LLC, USA (JV through ATHS)
Companies Apollo International Limited Apollo International Limited
Particulars Year ended March 31, 2021 Year ended March 31, 2020
in which Apollo International Trading LLC, Middle East Apollo International Trading LLC, Middle East
Subsidiaries Apollo Tyres Cooperatief U.A.,(AT Coop), Netherlands Apollo Tyres Cooperatief U.A.,(AT Coop), Netherlands directors are Apollo International FZC Apollo International FZC
Apollo Tyres (Greenfield) B.V., Netherlands Apollo Tyres (Greenfield) B.V., Netherlands interested Landmark Farms & Housing Pvt. Ltd. Landmark Farms & Housing Pvt. Ltd.
Apollo (South Africa) Holdings (Pty) Ltd. (ASHPL) Apollo (South Africa) Holdings (Pty) Ltd. (ASHPL)
SunLife Tradelinks (P) Ltd. SunLife Tradelinks (P) Ltd.
(Subsidiary through AT Coop) (Subsidiary through AT Coop)
Classic Industries and Exports Limited (formerly known as Classic Industries and Exports Limited (formerly known as
Apollo Tyres Africa (Pty) Ltd. (Subsidiary through ASHPL) Apollo Tyres Africa (Pty) Ltd. (Subsidiary through ASHPL)
Classic Auto Tubes Ltd.) Classic Auto Tubes Ltd.)
Apollo Tyres (Thailand) Limited, Thailand (Subsidiary Apollo Tyres (Thailand) Limited, Thailand (Subsidiary
PTL Enterprises Ltd. PTL Enterprises Ltd.
through AT Coop) through AT Coop)
Artemis Medicare Services Ltd. Artemis Medicare Services Ltd.
Apollo Tyres (Middle East) FZE (ATFZE), Dubai (Subsidiary Apollo Tyres (Middle East) FZE (ATFZE), Dubai (Subsidiary
through AT Coop) through AT Coop) Shardul Amarchand Mangaldas & Co. Shardul Amarchand Mangaldas & Co.
Apollo Tyres Holdings (Singapore) Pte. Ltd., (ATHS), Apollo Tyres Holdings (Singapore) Pte. Ltd., (ATHS), Regent Properties Regent Properties
Singapore (Subsidiary through AT Coop) Singapore (Subsidiary through AT Coop) Milers Global Pvt. Ltd. Milers Global Pvt. Ltd.
Apollo Tyres (Malaysia) SDN. BHD (Subsidiary through Apollo Tyres (Malaysia) SDN. BHD (Subsidiary through Key Mr. Onkar Kanwar Mr. Onkar Kanwar
ATHS) ATHS) management Mr. Neeraj Kanwar Mr. Neeraj Kanwar
Apollo Tyres (UK) Pvt. Ltd. (Subsidiary through AT Coop) Apollo Tyres (UK) Pvt. Ltd. (Subsidiary through AT Coop) personnel Mr. Satish Sharma Mr. Satish Sharma
Apollo Tyres (London) Pvt. Ltd. (Subsidiary through ATUK) Apollo Tyres (London) Pvt. Ltd. (Subsidiary through ATUK) Mr. Akshay Chudasama Mr. Akshay Chudasama
Apollo Tyres Global R&D B.V. (Subsidiary through AT Coop) Apollo Tyres Global R&D B.V. (Subsidiary through AT Coop) Gen. Bikram Singh (Retd.) Gen. Bikram Singh (Retd.)
Apollo Tyres (Germany) GmbH (Subsidiary through AT Apollo Tyres (Germany) GmbH (Subsidiary through AT Mr. Francesco Gori Mr. Francesco Gori
Coop) Coop) N.A. Mr. Nimesh N. Kampani**
Apollo Tyres AG, Switzerland (AT AG) (Subsidiary through Apollo Tyres AG, Switzerland (AT AG) (Subsidiary through Ms. Pallavi Shroff Ms. Pallavi Shroff
AT Coop) AT Coop)
Mr. Robert Steinmetz Mr. Robert Steinmetz
Apollo Tyres do (Brasil) LTDA (Subsidiary through ATCoop Apollo Tyres do (Brasil) LTDA (Subsidiary through ATCoop
Mr. Sunam Sarkar Mr. Sunam Sarkar
and ATBV) and ATBV)
N.A. Dr. S. Narayan**
Apollo Tyres B.V. (ATBV), Netherlands (Subsidiary through Apollo Tyres B.V. (ATBV), Netherlands (Subsidiary through
AT Coop) AT Coop) Mr. Vikram S. Mehta Mr. Vikram S. Mehta
Apollo Tyres (Hungary) Kft (Subsidiary through ATBV) Apollo Tyres (Hungary) Kft (Subsidiary through ATBV) Mr. Vinod Rai Mr. Vinod Rai
Reifencom GmbH, Hannover (Subsidiary through AT Reifencom GmbH, Hannover (Subsidiary through AT Coop) Ms. Anjali Bansal Ms. Anjali Bansal
Coop) Mr Francesco Cripino* N.A.
Reifencom Tyre (Qingdao) Co., Ltd. (Subsidiary through Reifencom Tyre (Qingdao) Co., Ltd. (Subsidiary through Mr Vishal Kashyap Mahadevia* N.A.
Reifencom GmbH, Hannover) Reifencom GmbH, Hannover)
Notes: Related parties and their relationships are as identified by the management and relied upon by the auditors. All transactions are conducted
Saturn F1 Pvt Ltd (Subsidiary through AT Coop) Saturn F1 Pvt Ltd (Subsidiary through AT Coop) in the ordinary course of business and at arm’s length.
N.A. Rubber Research LLC (Subsidiary through AT Coop) (Note c )
(a) Incorporated during the year.
ATL Singapore Pte Limited ATL Singapore Pte Limited
(b) Liquidated during the year
Apollo Vredestein Tires Inc., USA (Subsidiary through AT Apollo Vredestein Tires Inc., USA (Subsidiary through AT
Coop) Coop) (c) Liquidated during the previous year
Apollo Vredestein B.V., Netherlands (AVBV) (Subsidiary Apollo Vredestein B.V., Netherlands (AVBV) (Subsidiary (d) T
 he investment in Pan Aridus LLC, has been fully impaired in the prior years and the Group discontinued recognizing further losses in accordance with
through ATBV) through ATBV) Ind AS 28 Investments in Associates and Joint Ventures. The Group does not have any further obligations to satisfy with regard to this joint venture.
Apollo Tyres Centre of Excellence Limited (note(a)) N.A. (e) T
 he investment in Pressurerite (Pty) Ltd, an associate of ASHPL, has been fully impaired in the prior years and the Group discontinued
Subsidiaries of Apollo Vredestein B.V (AVBV): Subsidiaries of Apollo Vredestein B.V (AVBV): recognizing further losses in accordance with Ind AS 28 Investments in Associates and Joint Ventures. The Group does not have any further
Apollo Vredestein GmbH, Germany Apollo Vredestein GmbH, Germany obligations to satisfy with regard to this associate.
Apollo Vredestein Nordic A.B., Sweden Apollo Vredestein Nordic A.B., Sweden Apollo (South Africa) Holdings (Pty) Ltd has executed a sale of shares agreement with Tacoma Foods (Pty) Ltd to sell its entire stake in
Pressurerite (Pty) Limited effective from May 31, 2019. Pressurerite (Pty) Limited was not an associate of Apollo (South Africa) Holdings
Apollo Vredestein U.K. Limited, United Kingdom Apollo Vredestein U.K. Limited, United Kingdom
(Pty) Ltd as on March 31, 2020.
Apollo Vredestein SAS, France Apollo Vredestein SAS, France
* Appointed during the year
Apollo Vredestein Belux, Belgium Apollo Vredestein Belux, Belgium
** Ceased to be director during the previous year
Apollo Vredestein Gesellschaft m.b.H., Austria Apollo Vredestein Gesellschaft m.b.H., Austria
Apollo Vredestein Schweiz AG, Switzerland Apollo Vredestein Schweiz AG, Switzerland
Apollo Vredestein Iberica SA, Spain Apollo Vredestein Iberica SA, Spain
Apollo Vredestein Kft, Hungary Apollo Vredestein Kft, Hungary
N.A. S.C. Vredesetin R.O. Srl, Romania (Subsidiary through Apollo
Vredestein Kft, Hungary) (note(c))
Apollo Vredestein Opony Polska Sp. Zo.o., Poland Apollo Vredestein Opony Polska Sp. Zo.o., Poland
Vredestein Consulting B.V.,Netherlands Vredestein Consulting B.V.,Netherlands
Finlo B.V. Netherlands Finlo B.V. Netherlands
Vredestein Marketing B.V., Netherlands (note(b)) Vredestein Marketing B.V., Netherlands

194 Apollo Tyres Ltd Annual Report 2020-21 195

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

` Million
Transactions and balances with Related Parties:
Companies in Key
FY 2020-21 Particulars Subsidiaries which Directors Associate Management Total
` Million are interested Personnel
Companies in
Key Management
Freight and insurance recovered:
Particulars Subsidiaries which Directors Associate Total
are interested
Personnel Apollo Tyres Middle East Fze. 91.33 - - - 91.33
Apollo Tyres Thailand Ltd. 21.03 - - - 21.03
Description of transactions:
Sales: Finished goods Apollo Tyres Africa (Pty) Ltd 43.60 - - - 43.60
Apollo Vredestein B.V. 2,132.01 - - - 2,132.01 Apollo Vredestein B.V. 157.01 - - - 157.01
Apollo Tyres Middle East Fze. 2,251.26 - - - 2,251.26 Apollo Tyres Global R&D B.V 3.91 - - - 3.91
Apollo Tyres Thailand Ltd. 1,388.83 - - - 1,388.83 Apollo Tyres (Hungary) Kft 5.79 - - - 5.79
Apollo Tyres Africa (Pty) Ltd 698.05 - - - 698.05 Apollo Tyres (Malaysia) Sdn Bhd 2.48 - - - 2.48
Apollo Tyres (Malaysia) Sdn Bhd 198.05 - - - 198.05 Apollo Vredestein Tires Inc. 6.72 - - - 6.72
Apollo Tyres (Hungary) Kft 74.66 - - - 74.66
331.87 - - - 331.87
Apollo International FZC - 378.02 - - 378.02
Apollo Tyres Global R&D B.V 1.07 - - - 1.07 Royalty expense:
Apollo Vredestein Tires Inc. 14.62 - - - 14.62 Apollo Tyres AG, Switzerland 41.22 - - - 41.22
6,758.55 378.02 - - 7,136.57
Sales: Raw materials Purchase of raw material
Classic Industries and Exports Ltd. - 404.53 - - 404.53 Apollo Tyres Holdings (Singapore) Pte Ltd. 22,131.38 - - - 22,131.38
Investments made:
Apollo Tyres (Hungary) Kft. 7.73 - - - 7.73
Apollo Tyres Centre of Excellence Limited 1.00 - - - 1.00
22,139.11 - - - 22,139.11
Royalty income:
Apollo Tyres Middle East Fze. 11.57 - - - 11.57 Purchase of stock in trade:
Apollo Tyres Thailand Ltd. 9.67 - - - 9.67 Classic Industries and Exports Ltd. - 2,946.00 - - 2,946.00
Apollo Tyres Africa (Pty) Ltd 29.40 - - - 29.40 Apollo Vredestein B.V. 148.66 - - - 148.66
Apollo Tyres (Malaysia) Sdn Bhd 0.67 - - - 0.67 148.66 2,946.00 - - 3,094.66
51.31 - - - 51.31 Purchase of asset:
Cross charge of management and other expenses
Classic Industries and Exports Ltd. - 1,344.05 - - 1,344.05
received:
Apollo Tyres (UK) Pvt Ltd. 0.61 - - - 0.61
Apollo Vredestein B.V. 112.93 - - - 112.93
Apollo Tyres Middle East Fze. 2.48 - - - 2.48 Apollo Vredestein B.V. 20.68 - - - 20.68
Apollo Tyres Global R & D B.V. 3.43 - - - 3.43 Apollo Tyres (Hungary) Kft 44.88 - - - 44.88
Apollo Tyres (UK) Pvt. Ltd. 2.57 - - - 2.57 66.17 1,344.05 - - 1,410.22
Apollo Tyres Thailand Ltd. 2.65 - - - 2.65 Legal and professional charges paid:
PTL Enterprises Ltd. - 0.85 - - 0.85 Shardul Amarchand Mangaldas & Co - 9.13 - - 9.13
Classic Industries and Exports Ltd. - 1.69 - - 1.69
Apollo Tyres Africa (Pty) Ltd 2.14 - - - 2.14
Artemis Medicare Services Ltd. - 0.60 - - 0.60 Reimbursement of expenses paid:
Apollo Tyres (Hungary) Kft 83.97 - - - 83.97 PTL Enterprises Ltd. - 653.33 - - 653.33
Apollo Tyres Holdings (Singapore) Pte Ltd. 43.84 - - - 43.84 Classic Industries and Exports Ltd. - 4.66 - - 4.66
Apollo Tyres (Malaysia) Sdn Bhd 1.23 - - - 1.23 Apollo Vredestein B.V. 18.80 - - - 18.80
Apollo Vredestein Tires Inc. 40.58 - - - 40.58 Apollo Tyres Thailand Ltd. 47.61 - - - 47.61
295.82 3.14 - - 298.96 Apollo Tyres Middle East Fze. 13.96 - - - 13.96
Rent received:
Apollo Tyres (UK) Pvt. Ltd. 2.76 - - - 2.76
PTL Enterprises Ltd. - 0.39 - - 0.39
Apollo Tyres Global R & D B.V. 62.05 - - - 62.05
Classic Industries and Exports Ltd. - 1.06 - - 1.06
- 1.45 - - 1.45 Apollo Tyres Holdings (Singapore) Pte Ltd. 2.15 - - - 2.15
Reimbursement of expenses received: Apollo Tyres (Malaysia) Sdn Bhd 18.86 - - - 18.86
Apollo Vredestein B.V. 158.03 - - - 158.03 Apollo Tyres (Hungary) Kft 3.16 - - - 3.16
Apollo Tyres Middle East Fze. 2.98 - - - 2.98 Apollo Vredestein Tires Inc. 7.54 - - - 7.54
Apollo Tyres Global R & D B.V. 10.08 - - - 10.08 176.89 657.99 - - 834.88
Apollo Tyres Thailand Ltd. 4.00 - - - 4.00
Payment for services received:
Apollo Tyres (UK) Pvt. Ltd. 14.98 - - - 14.98
Artemis Medicare Services Ltd. - 22.54 - - 22.54
Classic Industries and Exports Ltd. - 10.61 - - 10.61
Apollo Tyres Africa (Pty) Ltd 2.16 - - - 2.16 Classic Industries and Exports Ltd. - 7.80 - - 7.80
Apollo Tyres (Hungary) Kft 58.93 - - - 58.93 - 30.34 - - 30.34
Apollo Tyres Holdings (Singapore) Pte Ltd. 129.48 - - - 129.48 Cross charge of R & D expenses paid:
Apollo Tyres AG, Switzerland 98.41 - - - 98.41 Apollo Tyres Global R & D B.V. 544.31 - - - 544.31
Apollo Tyres (Malaysia) Sdn Bhd 4.00 - - - 4.00
Reifencom GmbH 0.67 - - - 0.67
Apollo Vredestein Tires Inc. 1.43 - - - 1.43 Cross charge of other expenses paid:
485.15 10.61 - - 495.76 Apollo Tyres (UK) Pvt. Ltd. 774.82 - - - 774.82
Apollo Tyres Holdings (Singapore) Pte Ltd. 188.44 - - - 188.44
963.26 - - - 963.26

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Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

` Million ` Million
Companies in Key Companies in Key
Particulars Subsidiaries which Directors Associate Management Total Particulars Subsidiaries which Directors Associate Management Total
are interested Personnel are interested Personnel
Lease rent paid: Other non current financial assets*
PTL Enterprises Ltd. - 600.00 - - 600.00 PTL Enterprises Ltd. - 600.00 - - 600.00
Sunlife Tradelinks - 5.86 - - 5.86
Rent paid: Regent Properties - 5.40 - - 5.40
- 611.26 - - 611.26
Sunlife Tradelinks (P) Ltd. - 30.99 - - 30.99
Other non current assets
Regent Properties - 23.76 - - 23.76
Classic Industries and Exports Ltd. - 152.44 - - 152.44
Classic Industries and Exports Ltd. - 0.12 - - 0.12
- 54.87 - - 54.87
Trade receivable:
Mixing charges paid:
Apollo Vredestein B.V. 483.73 - - - 483.73
Classic Industries and Exports Ltd. - 190.45 - - 190.45
Apollo Tyres Africa (Pty) Ltd 355.86 - - - 355.86
Apollo Tyres Middle East Fze. 103.81 - - - 103.81
Commission on sales paid
Apollo Tyres (Hungary) Kft 24.87 - - - 24.87
Apollo Tyres Thailand Ltd. 49.09 - - - 49.09
Apollo Tyres (Thailand) Ltd. 133.63 - - - 133.63
Apollo Tyres Middle East Fze. 3.36 - - - 3.36
Apollo Tyres Global R & D B.V. 5.87 - - - 5.87
52.45 - - - 52.45
Apollo Tyres (Malaysia) Sdn Bhd 19.79 - - - 19.79
Guarantee commission received
Apollo Vredestein Tires Inc. 22.09 - - - 22.09
Apollo Tyres Co-Operatief U.A 11.35 - - - 11.35
1,149.65 - - - 1,149.65
Other current assets
Managerial remuneration:
Apollo Tyres Africa (Pty) Ltd 62.78 - - - 62.78
Mr. Onkar Kanwar - - - 420.82 420.82
Apollo Vredestein B.V. 44.15 - - - 44.15
Mr. Neeraj Kanwar - - - 368.21 368.21
Apollo Tyres Thailand Ltd. 34.07 - - - 34.07
Mr. Satish Sharma - - - 68.52 68.52
PTL Enterprises Ltd. - 64.97 - - 64.97
- - - 857.55 857.55
Classic Industries and Exports Ltd. - 213.60 - - 213.60
Sitting fees: Apollo Tyres (Hungary) Kft 23.38 - - - 23.38
Non-executive directors - - - 5.77 5.77 Apollo Tyres Middle East Fze. 45.85 - - - 45.85
Apollo Tyres Co-Operatief U.A 2.78 - - - 2.78
Commission: Apollo Tyres (UK) Pvt. Ltd. 2.21 - - - 2.21
Non-executive directors - - - 45.00 45.00 Apollo Tyres Global R&D B.V 48.79 - - - 48.79
Apollo Vredestein Tires Inc. 5.50 - - - 5.50
Amount outstanding as on March 31, 2021 Apollo Tyres Holdings (Singapore) Pte Ltd. 13.69 - - - 13.69
` Million Apollo Tyres (Malaysia) Sdn Bhd 2.22 - - - 2.22
Companies in Key Reifencom GmbH 0.70 - - - 0.70
Particulars Subsidiaries which Directors Associate Management Total 286.12 278.57 - - 564.69
are interested Personnel

Trade payable:
Transactions and balances with Related Parties:
Apollo Tyres AG, Switzerland 15.46 - - - 15.46
FY 2019-20
Apollo Vredestein B.V. 55.76 - - - 55.76
Apollo Tyres (UK) Pvt. Ltd. 185.16 - - - 185.16 ` Million

Apollo Tyres Global R&D 153.03 - - - 153.03 Companies in Key

Particulars Subsidiaries which Directors Associate Management Total
Apollo Tyres Middle East Fze. 42.99 - - - 42.99 are interested Personnel
Classic Industries and Exports Ltd. - 410.61 - - 410.61 Description of transactions:
Apollo Tyres (Thailand) Ltd. 155.47 - - - 155.47
Sales: Finished goods
Apollo Tyres Africa (Pty) Ltd 3.20 - - - 3.20
Apollo Vredestein B.V. 1,921.74 - - - 1,921.74
Artemis Medicare Services Ltd. - 1.69 - - 1.69
Apollo Tyres Holdings (Singapore) Pte Ltd. 3,105.88 - - - 3,105.88 Apollo Tyres Middle East Fze. 2,832.00 - - - 2,832.00
Apollo Tyres (Malaysia) Sdn Bhd 4.81 - - - 4.81 Apollo Tyres Thailand Ltd. 1,698.01 - - - 1,698.01
3,721.76 412.30 - - 4,134.06 Apollo Tyres Africa (Pty) Ltd 814.21 - - - 814.21
Other current liabilities (financial): Apollo Tyres (Malaysia) Sdn Bhd 335.42 - - - 335.42
Apollo Vredestein B.V. 7.11 - - - 7.11 Apollo Tyres (Hungary) Kft 19.17 - - - 19.17
Classic Industries and Exports Ltd. - 419.85 - - 419.85 Apollo International FZC - 660.04 - - 660.04
Apollo Vredestein Tires Inc. 3.39 - - - 3.39 Apollo International Ltd. - 13.39 - - 13.39
Apollo Tyres (UK) Pvt Ltd. 1.34 - - - 1.34 Apollo Tyres Global R&D B.V 3.45 - - - 3.45
Apollo International FZC - 16.11 - - 16.11 Apollo International Trading LLC, Middle East - 2.94 - - 2.94
Apollo Tyres (Hungary) Kft 7.33 - - - 7.33 Apollo Vredestein Tires Inc. 0.04 - - - 0.04
19.17 435.96 - - 455.13 7,624.04 676.37 - - 8,300.41

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 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

` Million ` Million
Companies in Key Companies in Key
Particulars Subsidiaries which Directors Associate Management Total Particulars Subsidiaries which Directors Associate Management Total
are interested Personnel are interested Personnel
Sales: Raw materials Apollo Tyres (Malaysia) Sdn Bhd 1.69 - - - 1.69
Classic Industries and Exports Ltd. - 390.72 - - 390.72 Apollo Vredestein Tires Inc. 0.13 - - - 0.13
190.87 0.04 - - 190.91
Sales: Semi finished goods Royalty expense:
Apollo Vredestein B.V. 1.90 - - - 1.90 Apollo Tyres AG, Switzerland 47.83 - - - 47.83

Investments made: Purchase of raw material

Apollo Tyres Co-Operatief U.A 1,709.20 - - - 1,709.20 Apollo Tyres Holdings (Singapore) Pte Ltd. 22,939.51 - - - 22,939.51

Royalty income: Purchase of stock in trade:

Apollo Tyres Middle East Fze. 17.34 - - - 17.34 Classic Industries and Exports Ltd. - 3,171.61 - - 3,171.61
Apollo Tyres Thailand Ltd. 13.50 - - - 13.50 Apollo Vredestein B.V. 120.44 - - - 120.44
Apollo Tyres Africa (Pty) Ltd 31.49 - - - 31.49 120.44 3,171.61 - - 3,292.05
Apollo Tyres (Malaysia) Sdn Bhd 0.57 - - - 0.57 Purchase of asset:
62.90 - - - 62.90 Classic Industries and Exports Ltd. - 1,326.08 - - 1,326.08
Cross charge of management and other expenses Artemis Medicare Services Ltd. - 59.63 - - 59.63
received: Apollo Vredestein B.V. 39.76 - - - 39.76
Apollo Vredestein B.V. 75.23 - - - 75.23 Apollo Tyres (Hungary) Kft 53.41 - - - 53.41
Apollo Tyres Middle East Fze. 2.44 - - - 2.44 93.17 1,385.71 - - 1,478.88
Apollo Tyres Global R & D B.V. 3.23 - - - 3.23 Legal and professional charges paid:
Apollo Tyres (UK) Pvt. Ltd. 2.40 - - - 2.40 Shardul Amarchand Mangaldas & Co - 3.00 - - 3.00
Apollo Tyres Thailand Ltd. 2.82 - - - 2.82
PTL Enterprises Ltd. - 0.85 - - 0.85 Reimbursement of expenses paid:
Classic Industries and Exports Ltd. 1.69 1.69 PTL Enterprises Ltd. - 645.64 - - 645.64
Apollo Tyres Africa (Pty) Ltd 2.11 - - - 2.11 Classic Industries and Exports Ltd. - 7.80 - - 7.80
Apollo Tyres (Hungary) Kft 28.09 - - - 28.09 Apollo Vredestein B.V. 28.15 - - - 28.15
Apollo Tyres Holdings (Singapore) Pte Ltd. 43.79 - - - 43.79 Apollo Tyres Thailand Ltd. 95.69 - - - 95.69
Apollo Tyres (Malaysia) Sdn Bhd 0.91 - - - 0.91 Apollo Tyres Middle East Fze. 51.86 - - - 51.86
161.02 2.54 - - 163.56 Apollo Tyres (UK) Pvt. Ltd. 12.89 - - - 12.89
Rent received: Apollo Tyres Global R & D B.V. 78.67 - - - 78.67
PTL Enterprises Ltd. - 0.39 - - 0.39 Apollo Tyres Africa (Pty) Ltd 11.38 - - - 11.38
Classic Industries and Exports Ltd. - 1.06 - - 1.06 Apollo Tyres Holdings (Singapore) Pte Ltd. 0.16 - - - 0.16
- 1.45 - - 1.45 Apollo Tyres (Malaysia) Sdn Bhd 25.06 - - - 25.06
Reimbursement of expenses received: Apollo Tyres (Hungary) Kft 22.88 - - - 22.88
Apollo Vredestein B.V. 106.93 - - - 106.93 Apollo Vredestein Tires Inc. 0.34 - - - 0.34
Apollo Tyres Middle East Fze. 2.58 - - - 2.58 327.08 653.44 - - 980.52
Apollo Tyres Global R & D B.V. 14.82 - - - 14.82 Payment for services received:
Apollo Tyres Thailand Ltd. 3.42 - - - 3.42 Artemis Medicare Services Ltd. - 20.78 - - 20.78
Apollo Tyres (UK) Pvt. Ltd. 15.31 - - - 15.31 Classic Industries and Exports Ltd. - 9.91 - - 9.91
Classic Industries and Exports Ltd. - 10.04 - - 10.04 - 30.69 - - 30.69
Apollo Tyres Africa (Pty) Ltd 1.94 - - - 1.94
Cross charge of R & D expenses paid:
Apollo Tyres (Hungary) Kft 138.82 - - - 138.82
Apollo Tyres Global R & D B.V. 654.40 - - - 654.40
Apollo Tyres Holdings (Singapore) Pte Ltd. 137.92 - - - 137.92
Apollo Tyres AG, Switzerland 90.52 - - - 90.52
Cross charge of other expenses paid:
Apollo Tyres (Malaysia) Sdn Bhd 2.27 - - - 2.27
Apollo Tyres (UK) Pvt. Ltd. 806.99 - - - 806.99
Reifencom GmbH 0.65 - - - 0.65
Apollo Tyres Holdings (Singapore) Pte Ltd. 211.40 - - - 211.40
Apollo Vredestein Tires Inc. 1.11 - - - 1.11
1,018.39 - - - 1,018.39
516.29 10.04 - - 526.33
Freight and insurance recovered:
Apollo International Ltd. FZC - 0.04 - - 0.04
Apollo Tyres Middle East Fze. 69.22 - - - 69.22
Apollo Tyres Thailand Ltd. 14.33 - - - 14.33
Apollo Tyres Africa (Pty) Ltd 30.46 - - - 30.46
Apollo Vredestein B.V. 71.48 - - - 71.48
Apollo Tyres Global R&D B.V 2.80 - - - 2.80
Apollo Tyres (Hungary) Kft 0.76 - - - 0.76

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 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

` Million ` Million
Companies in Key Companies in Key
Particulars Subsidiaries which Directors Associate Management Total Particulars Subsidiaries which Directors Associate Management Total
are interested Personnel are interested Personnel
Lease rent paid: Other current liabilities (financial):
PTL Enterprises Ltd. - 600.00 - - 600.00 Apollo Vredestein B.V. 38.35 - - - 38.35
Apollo International Ltd. - 0.52 - - 0.52
Rent paid: Classic Industries and Exports Ltd. - 190.85 - - 190.85
Sunlife Tradelinks (P) Ltd. - 30.99 - - 30.99 Apollo Vredestein Tires Inc. 0.07 - - - 0.07
Regent Properties - 23.76 - - 23.76 Apollo Tyres Global R&D B.V 1.13 - - - 1.13
Classic Industries and Exports Ltd. - 0.12 - - 0.12 Apollo International FZC - 56.23 - - 56.23
- 54.87 - - 54.87 Apollo Tyres (Hungary) Kft 29.77 - - - 29.77
Mixing charges paid: 69.32 247.60 - - 316.92
Classic Industries and Exports Ltd. - 143.44 - - 143.44 Other non current financial assets*
PTL Enterprises Ltd. - 600.00 - - 600.00
Commission on sales paid Sunlife Tradelinks - 5.86 - - 5.86
Apollo Tyres Thailand Ltd. 58.95 - - - 58.95 Regent Properties - 5.40 - - 5.40
Apollo Tyres Middle East Fze. 19.24 - - - 19.24 - 611.26 - - 611.26
78.19 - - - 78.19 Other non current assets
Guarantee commission received Classic Industries and Exports Ltd. - 666.12 - - 666.12
Apollo Tyres Co-Operatief U.A 8.94 - - - 8.94
Trade receivable:
Corporate guarantee given Apollo Vredestein B.V. 327.43 - - - 327.43
Apollo Tyres Co-operatief U.A 2,695.45 - - - 2,695.45 Apollo Tyres Africa (Pty) Ltd 211.36 - - - 211.36
Apollo Tyres Middle East Fze. 176.26 - - - 176.26
Managerial remuneration: Apollo Tyres (Hungary) Kft 21.36 - - - 21.36
Mr. Onkar Kanwar - - - 232.55 232.55 Apollo Tyres (Thailand) Ltd. 123.96 - - - 123.96
Mr. Neeraj Kanwar - - - 203.48 203.48 Apollo Tyres Global R & D B.V. 0.86 - - - 0.86
Mr. Satish Sharma - - - 58.14 58.14 Apollo Tyres (Malaysia) Sdn Bhd 82.28 - - - 82.28
- - - 494.17 494.17 Apollo Vredestein Tires Inc. 0.17 - - - 0.17
943.68 - - - 943.68
Sitting fees:
Non-executive directors - - - 8.05 8.05 Other current assets
Apollo Tyres Africa (Pty) Ltd 46.07 - - - 46.07
Apollo Vredestein B.V. 58.72 - - - 58.72
Commission:
Apollo Tyres Thailand Ltd. 72.25 - - - 72.25
Non-executive directors - - - 40.00 40.00
PTL Enterprises Ltd. - 65.79 - - 65.79
Apollo International Ltd - 3.02 - - 3.02
Amount outstanding as on March 31, 2020 Classic Industries and Exports Ltd. - 90.04 - - 90.04
` Million Apollo Tyres (Hungary) Kft 46.92 - - - 46.92
Companies in Key Apollo Tyres Middle East Fze. 29.68 - - - 29.68
Particulars Subsidiaries which Directors Associate Management Total
are interested Personnel Apollo Tyres Co-Operatief U.A 11.88 - - - 11.88
Trade payable: Apollo Tyres (UK) Pvt. Ltd. 6.66 - - - 6.66
Apollo Tyres AG, Switzerland 7.27 - - - 7.27 Apollo Tyres Global R&D B.V 35.24 - - - 35.24
Apollo Vredestein B.V. 63.89 - - - 63.89 Apollo Vredestein Tires Inc. 2.08 - - - 2.08
Apollo Tyres (UK) Pvt. Ltd. 165.67 - - - 165.67 Apollo Tyres Holdings (Singapore) Pte Ltd. 21.87 - - - 21.87
Apollo Tyres Global R&D 254.59 - - - 254.59 Apollo Tyres (Malaysia) Sdn Bhd 0.99 - - - 0.99
Apollo Tyres Middle East Fze. 100.64 - - - 100.64 Reifencom GmbH 2.61 - - - 2.61
Classic Industries and Exports Ltd. - 415.63 - - 415.63 334.97 158.85 - - 493.82
Apollo Tyres (Thailand) Ltd. 167.64 - - - 167.64
Apollo Tyres Africa (Pty) Ltd 4.41 - - - 4.41
Certain KMPs also participate in post employment benefits plans provided by the Company. The amount in respect of these towards
Artemis Medicare Services Ltd. - 4.90 - - 4.90 the KMPs can not be segregated as these are based on actuarial valuation for all employees of the Company.
Apollo Tyres Holdings (Singapore) Pte Ltd. 3,425.50 - - - 3,425.50 *This represents undiscounted value.
Apollo Tyres (Malaysia) Sdn Bhd 6.29 - - - 6.29
Apollo Tyres (Hungary) Kft 48.17 - - - 48.17
4,244.07 420.53 - - 4,664.60

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 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

21 DISCLOSURE REQUIRED BY REGULATION 34 OF SEBI (LISTING OBLIGATIONS & DISCLOSURE REQUIREMENTS) 25 RECONCILIATION OF LIABILITIES FROM FINANCING ACTIVITIES
REGULATIONS, 2015 REGARDING THE RELATED PARTIES
 ffective April 01, 2017, the Company adopted the amendment to Ind AS-7, which require the entities to provide disclosures that
E
Amount of loans / advances in the nature of loans outstanding from Subsidiaries and Companies in which Directors are interested enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes
arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances
` Million
in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirements. The required disclosure
Investments
Maximum amount are presented below:
Outstanding as at outstanding and
Particulars outstanding during
the end of the year maximum balance
the year
during the year ` Million
Subsidiaries Non cash
changes
Year ended March 31, 2021 As on Interest As on
Particulars Cash flows Foreign New leases Others
Apollo Tyres Cooperatief U.A - - 23,973.19 April 01, 2020 expense March 31, 2021
exchange
Apollo Tyres (Green Field) B.V. - - 2.74 movement*
Apollo Tyres Centre of Excellence Limited - - 1.00 Non-current borrowings 32,754.66 10,160.96 (476.88) - - 21.71 42,460.45
Year ended March 31, 2020 (including current
maturities)
Apollo Tyres Cooperatief U.A - - 23,973.19
Current borrowings 11,180.69 (10,180.00) - - - 4.16 1,004.85
Apollo Tyres (Green Field) B.V. - - 2.74
Lease liability 6,137.80 (1,269.98) - 443.00 131.04 (90.79) 5,351.07
Associates
Year ended March 31, 2021
KT Telematic Solutions Private Limited - - 45.01 ` Million

Year ended March 31, 2020 Non cash

changes
KT Telematic Solutions Private Limited - - 45.01 As on Interest As on
Particulars Cash flows Foreign New leases Others
April 01, 2019 expense March 31, 2020
exchange
movement*
22 SEGMENT REPORTING Non-current borrowings 24,577.71 7,151.90 1,079.98 - - (54.93) 32,754.66
The Company has opted to provide segment information in its consolidated Ind AS financial statements in accordance with para (including current
maturities)
4 of Ind AS 108 - Operating Segments.
Current borrowings 2,925.07 8,255.62 - - - - 11,180.69
Lease liability 6,473.04 (1,358.54) - 499.75 594.00 (70.45) 6,137.80
23 EVENTS AFTER THE BALANCE SHEET DATE
* Foreign exchange movement is hedged by derivative instrument.
 he Board of Directors have recommended a final dividend of ` 3.50 (` Nil) per share amounting to ` 2,222.85 Million (` Nil) on
T
Equity Shares of ` 1/- each for the year, subject to approval from Shareholders.
26 Effective April 01, 2018. the Company has adopted Ind AS 115 “ Revenue from Contracts with Customers” using the cumulative
effect. The application of Ind AS 115 did not have any significant impact on recognition and measurement of revenue in the
24 INFORMATION ON DETAILS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE ACT READ
financial statements of the Company.
WITH COMPANIES (MEETINGS OF BOARD AND ITS POWERS) RULES, 2014
The Company’s revenue disaggregated by geographical markets is as follows:
i) Details of investments made are given in note B2.*
ii) Corporate guarantees issued for the loan taken by the subsidiary company and outstanding in accordance with Section ` Million
186 of the Act read with rules issued thereunder. Particulars
Year ended Year ended
March 31, 2021 March 31, 2020
` Million
India 102,843.79 97,157.06
Year ended Year ended
Particulars Rest of the world 10,701.33 11,169.91
March 31, 2021 March 31, 2020
Apollo Tyres Cooperatief U.A 6,179.76 5,985.86 Total 113,545.12 108,326.97
Total 6,179.76 5,985.86
Reconciling the amount of revenue recognised in statement of profit and loss with the contracted price
* All transactions are in the ordinary course of business
` Million
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Revenue as per contracted price (as invoiced) 119,370.89 112,604.58
Reduction towards variable consideration components (5,825.77) (4,277.61)
Revenue from contract with customers 113,545.12 108,326.97

204 Apollo Tyres Ltd Annual Report 2020-21 205

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Independent Auditor’s Report

 he Company has applied the practical expedient and has not disclosed the transaction price allocated to the remaining
T To the Members of Apollo Tyres Limited BASIS FOR OPINION
performance obligations as the Company does not have any open contract for which the expected duration is more than one
3. We conducted our audit in accordance with the Standards
year as at the reporting period. REPORT ON THE AUDIT OF THE CONSOLIDATED
on Auditing specified under section 143(10) of the Act.
FINANCIAL STATEMENTS
27 O
 n February 26, 2020, the Company executed an agreement with Emerald Sage Investment Ltd (an affiliate of Warburg Pincus Our responsibilities under those standards are further
LLC) to issue 108,000,000 6.34% Compulsorily Convertible Preference Shares (CCPS) having a face value of ` 100 each, at par, for OPINION described in the Auditor’s Responsibilities for the Audit of the
cash, by way of preferential allotment on a private placement basis. The Members of the Company approved the issue of CCPS Consolidated Financial Statements section of our report. We
1.  e have audited the accompanying consolidated financial
W
(Tranche 1) through its Extraordinary General Meeting held on March 23, 2020 and issue of CCPS (Tranche 2) through Postal are independent of the Company in accordance with the Code
statements of Apollo Tyres Limited (‘the Holding Company’)
Ballot held on September 24, 2020. The Company had allotted 54,000,000 CCPS (Tranche 1) and 54,000,000 CCPS (Tranche 2), of Ethics issued by the Institute of Chartered Accountants
and its subsidiaries (the Holding Company and its subsidiaries
for cash, for an aggregate amount of ` 10,800 Million on April 22, 2020 and October 7, 2020 respectively. These CCPS have been of India (‘ICAI’) together with the ethical requirements that
together referred to as ‘the Group’), its associate and joint
accounted for as compound instruments in the financial statements. On December 5, 2020, one of the conditions for conversion are relevant to our audit of the financial statements under
venture, as listed in Annexure 1, which comprise the Consolidated
was met and accordingly the Company has issued 63,050,966 equity shares having a face value of ` 1 per share. After issue of the provisions of the Act and the rules thereunder, and we
Balance Sheet as at 31 March 2021, the Consolidated
the aforesaid equity shares, the paid-up equity share capital of the Company has increased by ` 63.05 Million and securities have fulfilled our other ethical responsibilities in accordance
Statement of Profit and Loss (including Other Comprehensive
premium account by ` 10,450.95 Million, net of share issue expenses. with these requirements and the Code of Ethics. We believe
Income), the Consolidated Cash Flow Statement and the
that the audit evidence we have obtained and the audit
28 T
 he Company had carried out an employee re-organisation exercise for its employees. The amount paid to the employees Consolidated Statement of Changes in Equity for the year then
evidence obtained by the other auditors in terms of their
who opted for this scheme aggregated to ` 110.16 million (` Nil) for the year ended March 31, 2021, has been disclosed as an ended, and a summary of the significant accounting policies
reports referred to in paragraph 15 of the Other Matter
exceptional item. and other explanatory information.
section below,is sufficient and appropriate to provide a basis
29 P
 revious year’s figures has been regrouped and/ or re-classed wherever necessary to confirm to the current year’s groupings and 2. I n our opinion and to the best of our information and for our opinion.
classifications. according to the explanations given to us and based on the
consideration of the reports of the other auditors on separate KEY AUDIT MATTERS
30 EARNINGS PER SHARE (EPS) – THE NUMERATOR AND DENOMINATOR USED TO CALCULATE BASIC AND DILUTED financial statements and on the other financial information
4. Key audit matters are those matters that, in our professional
EARNINGS PER SHARE of the subsidiaries and associate the aforesaid consolidated
judgment and based on the consideration of the reports of
financial statements give the information required by the
` Million the other auditors on separate financial statements and
Companies Act, 2013 (‘Act’) in the manner so required and
Particulars
Year ended Year ended on the other financial information of the subsidiaries and
March 31, 2021 March 31, 2020 give a true and fair view in conformity with the accounting
associate, were of most significance in our audit of the
Basic and diluted earnings per share principles generally accepted in India including Indian
financial statements of the current period. These matters
Profit attributable to the equity shareholders used as numerator (` Million) - (A) 7,228.21 5,086.24 Accounting Standards (‘Ind AS’) specified under section 133
were addressed in the context of our audit of the consolidated
The weighted average number of equity shares outstanding during the year used as 616,962,997 572,049,980 of the Act, of the consolidated state of affairs of the Group,
financial statements as a whole, and in forming our opinion
denominator - (B) its associate and joint venture, as at 31 March 2021, and their
thereon, and we do not provide a separate opinion on these
Basic and diluted earnings per share (`) – (A) / (B) (Face value of ` 1 each) 11.72 8.89 consolidated profit (including other comprehensive income),
matters.
consolidated cash flows and the consolidated changes in
equity for the year ended on that date.
For and on behalf of the Board of Directors

5. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key audit matter How our audit procedures addressed the key audit matter
ONKAR KANWAR NEERAJ KANWAR VINOD RAI A. Recoverability of goodwill, trademarks and other intangibles Our audit procedures included:
Chairman & Managing Director Vice Chairman & Managing Director Director having indefinite useful life (‘intangibles’) pertaining to acquisition
DIN 00058921 DIN 00058951 DIN 00041867 a) Obtained an understanding from the management with respect
of Reifencom GmbH, Hannover (‘Reifencom’)
to process and controls followed by the Group to perform annual
As detailed in Note C3 to the consolidated financial statement, impairment test related to goodwill and intangibles;
GAURAV KUMAR SEEMA THAPAR the Group carries goodwill amounting to ` 2,203.63 million
Chief Financial Officer Company Secretary and intangibles amounting to ` 1,502.76 million (pertaining to b) Obtained the impairment analysis model from the management
London Membership No - FCS 6690 Reifencom) in its consolidated balance sheet as at March 31, 2021. and reviewed their conclusions;
May 12, 2021
These goodwill and intangibles were recorded on the acquisition of c)  ested the inputs used in the Model by examining the underlying
T
Reifencom GmbH, Germany, a multi-channel distributor for tyres data and validating the future projections by comparing past
and allied services, which has been determined as a cash generating projections with actual results, including discussions with
unit (‘CGU’) by the management. management relating to these projections;
In terms with Indian Accounting Standard 36, Goodwill and d)  e assessed the reasonableness of the assumptions used and
W
indefinite lived assets are tested for impairment annually at the CGU appropriateness of the valuation methodology applied. Tested
level, whereby the carrying amount of the CGU (including goodwill) the discount rate and long-term growth rates used in the forecast
is compared with the recoverable amount of the CGU. including comparison to economic and industry forecasts where
The recoverable amount is determined on the basis of the value in appropriate;
use which is the present value of future cash flows of the CGU using
discounted cash flow model (‘Model’), which involves estimates
pertaining to expected business and earnings forecasts and key
assumptions including those related to discount and long-term
growth rates. These estimates require high degree of management
judgement resulting in inherent subjectivity.

206 Apollo Tyres Ltd Annual Report 2020-21 207

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Key audit matter How our audit procedures addressed the key audit matter Key audit matter How our audit procedures addressed the key audit matter
The management has concluded that the recoverable amount of e)  ngaged our valuation specialists to assess the appropriateness
E D. Litigations and claims: provisions and contingent liabilities Our procedures included, but were not limited to, the following:
the CGU is higher than its carrying amount and accordingly, no of the significant assumptions used in the Model, which included
As included under Note C15 [contingent liability note] and Note a) Obtained an understanding from the management with respect
impairment provision has been recorded as at 31 March, 2021. comparing the underlying parameters of the discount and long
C8 [Provision for contingencies note] to the consolidated financial to process and controls followed by the Group for identification
term growth rates used with the publicly available information;
Considering the materiality of the amount involved and significant statements, the Group is involved in direct and indirect tax litigations and monitoring of significant developments in relation to the
degree of judgement and subjectivity involved in the estimates f)  erformed sensitivity analysis on these key assumptions to
P (‘litigations’) amounting to ` 3,695.22 million that are pending with litigations, including completeness thereof;
and assumptions used in determining the cash flows used in the assess potential impact of downside in the underlying cash flow various tax authorities.
b)  btained the list of litigations from the management and
O
impairment evaluation, we have determined impairment of such forecasts and assessed the possible mitigating actions identified
Whether a liability is recognised or disclosed as a contingent liability reviewed their assessment of the likelihood of outflow of
goodwill and intangibles arising from the business combination as a by management; and
in the financial statements is inherently judgmental and dependent economic resources being probable, possible or remote in respect
key audit matter for the current year audit.
g)  ssessed and validated the adequacy and appropriateness of
A on a number of significant assumptions and assessments. These of the litigations. This involved assessing the probability of an
the disclosures made by the management in the consolidated include assumptions relating to the likelihood and/or timing of the unfavorable outcome of a given proceeding and the reliability of
financial statements. cash outflows from the business and the interpretation of local estimates of related amounts;
laws and pending assessments at various levels of the statute. We
B. Recoverability of trademarks (other than those considered in The following key audit matter to the audit opinion on the financial c)  erformed substantive procedures including tracing from
P
placed specific focus on the judgements in respect to these demands
A above) statements of Apollo Tyres B.V, a subsidiary of the Holding Company underlying documents / communications from the tax authorities
against the Group.
has been reported by an independent firm of Chartered Accountants in and re-computation of the amounts involved;
As at 31 March 2021, the Group carries these trademarks amounting Determining the amount, if any, to be recognised or disclosed in
response to the group audit instructions and reproduced by us as under:
to ` 1,106.86 million in its consolidated balance sheet. d)  ssessed management’s conclusions through discussions held
A
the consolidated financial statements, is inherently subjective. The
a)  btained the Model from the management and reviewed their
O with their in house tax experts and understanding precedents in
These trademarks were recorded on the acquisition of Apollo amounts involved are potentially significant and due to the range
conclusions; similar cases;
Vredestein B.V. (‘AVBV’) in the Netherlands. of possible outcomes and considerable uncertainty around the
b)  ested the inputs used in the Model by examining the underlying
T various claims the determination of the need for creating a provision e)  btained and evaluated the independent confirmations from
O
The trademarks are tested for impairment annually at the CGU in the financial statements is inherently subjective and therefore is the consultants representing the Group before the various
data and validating the future projections by comparing past
level, whereby the carrying amount of the CGU (including goodwill) considered to be a key audit matter in the current year authorities;
projections with actual results, including discussions with
is compared with the recoverable amount of the CGU.
management relating to these projections;
f) Engaged auditor’s experts, who obtained an understanding of
The recoverable amount is determined on the basis of the value in the current status of the litigations, conducted discussions with
c)  ssessed the appropriateness of the significant assumptions
A
use which is the present value of future cash flows of the CGU using the management, reviewed independent legal advice received
used in the Model, which included comparing the underlying
discounted cash flow model (‘Model’), which involves estimates by the Group, if any and considered relevant legal provisions and
parameters of the discount and long term growth rates used with
pertaining to expected business and earnings forecasts and key available precedents to validate the conclusions made by the
the publicly available information; and
assumptions including those related to discount and long-term management; and
growth rates. These estimates require high degree of management d)  erformed sensitivity analysis on these key assumptions to
P
judgement resulting in inherent subjectivity. assess potential impact of downside in the underlying cash flow g)  ssessed and validated the adequacy and appropriateness of
A
forecasts and assessed the possible mitigating actions identified the disclosures made by the management in the consolidated
As explained in note C3, the management has concluded that the financial statements.
by management;
recoverable amount of the CGU is higher than its carrying amount.

C. Provision for sales related obligations Our audit procedures included, but were not limited to the following:
INFORMATION OTHER THAN THE CONSOLIDATED  ESPONSIBILITIES OF MANAGEMENT AND THOSE
R
As at 31 March 2021, the Holding Company carries sales related a)  btained an understanding from the management with respect
O
FINANCIAL STATEMENTS AND AUDITOR’S REPORT CHARGED WITH GOVERNANCE FOR THE CONSOLIDATED
obligations amounting to ` 1,411.91 million which is included in to process and controls followed by the Holding Company
note C8. to ensure appropriateness of recognition, measurement and THEREON FINANCIAL STATEMENTS
completeness of the sales related obligations;
Such provision is recognised based on past trends, frequency, 6.  he Holding Company’s Board of Directors are responsible
T 7.  he accompanying consolidated financial statements
T
expected cost of obligations, management estimates regarding b)  ested the management’s computation of sales related
T for the other information. The other information comprises have been approved by the Holding Company’s Board of
possible future incidences and appropriate discount rates for non- obligations by evaluating the reasonability of the key the information included in the Management Discussion and Directors. The Holding Company’s Board of Directors is
current portion of the obligations. assumptions, reviewing the contractual terms, comparing the
Analysis, Report on Corporate Governance and Director’s responsible for the matters stated in section 134(5) of the
assumptions to historical data and analysing the expected costs
These estimates require high degree of management judgement Report, but does not include the consolidated financial Act with respect to the preparation of these consolidated
of incidences;
with respect to the underlying assumptions, thus giving rise to statements and our auditor’s report thereon. financial statements that give a true and fair view of the
inherent subjectivity in determining the amounts to be recorded in c)  raced the inputs used in the computations, to the relevant
T
consolidated financial position, consolidated financial
the consolidated financial statements. accounting records, including discussions with the relevant  ur opinion on the consolidated financial statements does
O
performance including other comprehensive income,
management personnel and tested the arithmetical accuracy of not cover the other information and we do not express any
Considering the materiality of the above matter to the consolidated the computation; consolidated changes in equity and consolidated cash
form of assurance conclusion thereon.
financial statements, complexities and judgement involved, and the flows of the Group including its associate and joint venture
d)  ompared the amounts recognized as provision in the past years
C
significant auditor attention required to test such management’s In connection with our audit of the consolidated financial in accordance with the accounting principles generally
with the corresponding settlements and assessed whether the
judgement, we have identified this as a key audit matter for current statements, our responsibility is to read the other accepted in India, including the Ind AS specified under
aggregate provisions recognized as at the current year-end were
year audit.
sufficient to cover expected costs in light of known and expected information and, in doing so, consider whether the other section 133 of the Act. The Holding Company’s Board of
incidences; information is materially inconsistent with the consolidated Directors is also responsible for ensuring accuracy of records
e)  erformed sensitivity analysis on the management’s computation
P financial statements or our knowledge obtained in the audit including financial information considered necessary for the
by evaluating the impact of change on the obligation by changing or otherwise appears to be materially misstated. If, based preparation of consolidated Ind AS financial statements.
certain key assumptions such as discount rates used; and on the work we have performed, we conclude that there is Further, in terms of the provisions of the Act, the respective
f)  ssessed and validated the adequacy and appropriateness of
A a material misstatement of this other information, we are Board of Directors /management of the companies
the disclosures made by the management in the consolidated required to report that fact. We have nothing to report in included in the Group, and its associate company and joint
financial statements. this regard. venture company covered under the Act are responsible
for maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding

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 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

the assets and for preventing and detecting frauds and from fraud is higher than for one resulting from error, as 13. W
 e also provide those charged with governance with a audited these conversion adjustments made by the Holding
other irregularities; selection and application of appropriate fraud may involve collusion, forgery, intentional omissions, statement that we have complied with relevant ethical Company’s management. Our opinion on the consolidated
accounting policies; making judgments and estimates that misrepresentations, or the override of internal control; requirements regarding independence, and to communicate financial statements, in so far as it relates to the balances
are reasonable and prudent; and design, implementation with them all relationships and other matters that may and affairs of such subsidiaries located outside India, are
• Obtain an understanding of internal control relevant to
and maintenance of adequate internal financial controls, reasonably be thought to bear on our independence, and based on the report of other auditors and the conversion
the audit in order to design audit procedures that are
that were operating effectively for ensuring the accuracy where applicable, related safeguards. adjustments prepared by the management of the Holding
appropriate in the circumstances. Under section 143(3)
and completeness of the accounting records, relevant to the Company and audited by us.
(i) of the Act, we are also responsible for expressing our 14. F
 rom the matters communicated with those charged with
preparation and presentation of the financial statements
opinion on whether the Holding Company, its subsidiary governance, we determine those matters that were of most Our opinion above on the consolidated financial statements,
that give a true and fair view and are free from material
and associate (covered under the Act) have adequate significance in the audit of the financial statements of the and our report on other legal and regulatory requirements
misstatement, whether due to fraud or error. These financial
internal financial controls with reference to financial current period and are therefore the key audit matters. We below, are not modified in respect of the above matters with
statements have been used for the purpose of preparation
statements in place and the operating effectiveness of describe these matters in our auditor’s report unless law or respect to our reliance on the work done by and the reports
of the consolidated financial statements by the Directors of
such controls; regulation precludes public disclosure about the matter or of the other auditors.
the Holding Company, as aforesaid.
when, in extremely rare circumstances, we determine that
• Evaluate the appropriateness of accounting policies used
8. I n preparing the consolidated financial statements, the a matter should not be communicated in our report because REPORT ON OTHER LEGAL AND REGULATORY
and the reasonableness of accounting estimates and
Board of Directors of the companies included in the Group the adverse consequences of doing so would reasonably be REQUIREMENTS
related disclosures made by management;
and of its associate and joint venture are responsible for expected to outweigh the public interest benefits of such
16. A
 s required by section 197(16) of the Act, based on our
assessing the ability of the respective companies included in • Conclude on the appropriateness of management’s use of communication.
audit we report that the Holding Company covered under
the Group and of its associate and joint venture to continue the going concern basis of accounting and, based on the
the Act paid and provided remuneration to their respective
as a going concern, disclosing, as applicable, matters audit evidence obtained, whether a material uncertainty OTHER MATTER
directors during the year in accordance with the provisions
related to going concern and using the going concern basis exists related to events or conditions that may cast
15. W
 e did not audit the financial statements of 27 subsidiaries, of and limits laid down under section 197 read with Schedule
of accounting unless the Board of Directors of the parent significant doubt on the ability of the Group and its
whose financial statements reflects total assets of V to the Act. Further, based on the consideration of the
Company either intend to liquidate the Group or to cease associate and joint venture to continue as a going concern.
` 95,748.27 million and net assets of ` 43,772.46 million report of the other auditor, referred to in paragraph 15, on
operations, or has no realistic alternative but to do so. If we conclude that a material uncertainty exists, we are
as at 31 March 2021, total revenues of ` 89,674.48 million separate financial statements of the subsidiary, we report
required to draw attention in our auditor’s report to the
9.  he Board of Directors of the companies included in the
T and net cash inflows amounting to ` 1,439.34 million for the that one subsidiary companies covered under the Act has not
related disclosures in the financial statements or, if such
Group and of its associate and joint venture are also year ended on that date, as considered in the consolidated paid or provided for any managerial remuneration during
disclosures are inadequate, to modify our opinion. Our
responsible for overseeing the financial reporting process financial statements. The consolidated financial statements the year. Accordingly, reporting under section 197(16)
conclusions are based on the audit evidence obtained up
of the respective companies included in the Group and of its also include the Group’s share of net profit (including other of the Act is not applicable in respect of such subsidiary
to the date of our auditor’s report. However, future events
associate and joint venture. comprehensive income) of ` 0.27 million for the year ended company. Further, we report that the provisions of section
or conditions may cause the Group and its associate and
31 March 2021, as considered in the consolidated financial 197 read with Schedule V to the Act are not applicable to
joint venture to cease to continue as a going concern;
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE statements, in respect of one associate, whose financial one associate company covered under the Act, since such
FINANCIAL STATEMENTS • Evaluate the overall presentation, structure and content statement has not been audited by us. These financial company is not a public company as defined under section
of the financial statements, including the disclosures, and statements have been audited by other auditors whose 2(71) of the Act.
10. O
 ur objectives are to obtain reasonable assurance about
whether the financial statements represent the underlying reports have been furnished to us by the other auditors
whether the financial statements as a whole are free from 17. A
 s required by Section 143 (3) of the Act, based on our audit
transactions and events in a manner that achieves fair at the request of the management and our opinion on the
material misstatement, whether due to fraud or error, and on the consideration of the reports of the other auditors
presentation; and consolidated financial statements, in so far as it relates to
and to issue an auditor’s report that includes our opinion. on separate financial statements and other financial
the amounts and disclosures included in respect of these
Reasonable assurance is a high level of assurance but is • Obtain sufficient appropriate audit evidence regarding the information of the subsidiaries and associate, we report, to
subsidiaries and associate, and our report in terms of sub-
not a guarantee that an audit conducted in accordance financial information of the entities within the Group, and the extent applicable, that:
section (3) of Section 143 of the Act, in so far as it relates to
with Standards on Auditing will always detect a material its associate and joint venture, to express an opinion on the
the aforesaid subsidiaries, and associate, are based solely a)  e have sought and obtained all the information and
w
misstatement when it exists. Misstatements can arise from financial statements. We are responsible for the direction,
on the reports of the other auditors. explanations which to the best of our knowledge and
fraud or error and are considered material if, individually supervision and performance of the audit of financial
belief were necessary for the purpose of our audit of the
or in the aggregate, they could reasonably be expected to statements of such entities included in the financial Further, of these subsidiaries, 26 subsidiaries are located
aforesaid consolidated financial statements;
influence the economic decisions of users taken on the basis statements, of which we are the independent auditors. outside India whose financial statements and other financial
of these financial statements. For the other entities included in the financial statements, information have been prepared in accordance with b) in our opinion, proper books of account as required by law
which have been audited by the other auditors, such other accounting principles generally accepted in their respective relating to preparation of the aforesaid consolidated
11. A
 s part of an audit in accordance with Standards on
auditors remain responsible for the direction, supervision countries and which have been audited by other auditors financial statements have been kept so far as it appears
Auditing, we exercise professional judgment and maintain
and performance of the audits carried out by them. We under generally accepted auditing standards applicable from our examination of those books and the reports of
professional skepticism throughout the audit. We also:
remain solely responsible for our audit opinion. in their respective countries. The Holding Company’s the other auditors;
management has converted the financial statements of
• Identify and assess the risks of material misstatement 12. W
 e communicate with those charged with governance c) t he consolidated financial statements dealt with by
such subsidiaries located outside India from accounting
of the financial statements, whether due to fraud or regarding, among other matters, the planned scope and this report are in agreement with the relevant books of
principles generally accepted in their respective countries to
error, design and perform audit procedures responsive to timing of the audit and significant audit findings, including account maintained for the purpose of preparation of
accounting principles generally accepted in India. We have
those risks, and obtain audit evidence that is sufficient any significant deficiencies in internal control that we the consolidated financial statements;
and appropriate to provide a basis for our opinion. The identify during our audit.
risk of not detecting a material misstatement resulting

210 Apollo Tyres Ltd Annual Report 2020-21 211

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Annexure 1
List of entities included in the Statement
S no. Name of the Holding Company
d) i n our opinion, the aforesaid consolidated financial ii.  rovision has been made in these consolidated
p
1 Apollo Tyres Limited
statements comply with Ind AS specified under section financial statements, as required under the
133 of the Act; applicable law or Ind AS, for material foreseeable
losses, on long-term contracts including derivative Name of the subsidiaries
e)  n the basis of the written representations received
o 1 Apollo Tyres Cooperatief U.A.
contracts;
from the directors of the Holding Company and taken on 2 Apollo (South Africa) Holdings (Pty) Ltd.
record by the Board of Directors of the Holding Company iii. T
 here has been no delay in transferring amounts, 3 Apollo Tyres Africa (Pty) Ltd.
and the reports of the statutory auditors of its subsidiary required to be transferred, to the Investor Education 4 Apollo Tyres (Thailand) Limited
company and associate company covered under the and Protection Fund by the Holding Company 5 Apollo Tyres (Middle East) FZE
Act, none of the directors of the Group companies other than ` 4.86 million (31 March 2020: INR 4.30 6 Apollo Tyres Holdings (Singapore) Pte. Ltd.
and its associate company covered under the Act, are million) pertaining to amount of dividend which has 7 Apollo Tyres (Malaysia) SDN. BHD
disqualified as on 31 March 2021 from being appointed not been transferred as per the orders/ instructions 8 Apollo Tyres (UK) Pvt. Ltd.
as a director in terms of Section 164(2) of the Act. dated 14 June 2001 of the Special Court (Trial of 9 Apollo Tyres (London) Pvt. Ltd.
Offences Relating to Transactions in Securities) 10 Apollo Tyres Global R&D B.V.
f) with respect to the adequacy of the internal financial 11 Apollo Tyres (Germany) GmbH
Act, 1992. There was no amount which was required
controls with reference to financial statements of 12 Apollo Tyres AG
to be transferred to the Investor Education and
the Holding Company, its subsidiary company and 13 Apollo Tyres do (Brasil) LTDA
Protection Fund by a subsidiary company and an
associate company covered under the Act, and the 14 Apollo Tyres B.V
associate company covered under the Act
operating effectiveness of such controls, refer to our 15 Apollo Tyres (Hungary) Kft
separate report in ‘Annexure II’; and 16 Apollo Vredestein B.V.
iv. the disclosure requirements relating to holdings
17 Apollo Vredestein GmbH
g) w
 ith respect to the other matters to be included in as well as dealings in specified bank notes were
18 Apollo Vredestein Nordic A.B.
the Auditor’s Report in accordance with rule 11 of applicable for the period from 8 November 2016 19 Apollo Vredestein (UK) Limited
the Companies (Audit and Auditors) Rules, 2014 to 30 December 2016, which are not relevant to 20 Apollo Vredestein SAS
(as amended), in our opinion and to the best of our these consolidated financial statements. Hence, 21 Apollo Vredestein Belux
information and according to the explanations given to reporting under this clause is not applicable. 22 Apollo Vredestein Gesellschaft m.b.H.
us and based on the consideration of the report of the 23 Apollo Vredestein Schweiz AG
other auditors on separate financial statements as also For Walker Chandiok & Co LLP 24 Apollo Vredestein Iberica SAU
the other financial information of the subsidiaries and Chartered Accountants 25 Apollo Vredestein Tires Inc.
associate: Firm’s Registration No.: 001076N/N500013 26 Apollo Vredestein Kft
27 Apollo Vredestein Opony Polska Sp. Zo.o
i. t he consolidated financial statements disclose the
Neeraj Goel 28 Vredestein Consulting B.V.
impact of pending litigations on the consolidated
Partner 29 Finlo B.V.
financial position of the Group, its associate
Membership No.: 99514 30 Vredestein Marketing B.V. (upto 30 September 2020)
and joint venture as detailed in Note C15 to the 31 Reifencom GmbH, Hannover
UDIN: 21099514AAAACY4201
consolidated financial statements; 32 Reifencom Tyre (Qingdao) Co., Ltd.
Place: Gurugram 33 Saturn F1 Pvt. Ltd
Date: 12 May 2021 34 ATL Singapore Pte Limited
35 Apollo Tyres (Greenfield) B.V.
36 Apollo Tyres Centre of Excellence Limited
(w.e.f 10 October 2020)

Name of the associate

1 KT Telematic Solutions Private Limited

Name of the joint venture

1 Pan Aridus LLC

212 Apollo Tyres Ltd Annual Report 2020-21 213

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Annexure II
INDEPENDENT AUDITOR’S REPORT ON THE INTERNAL 4.  ur audit involves performing procedures to obtain audit
O risk that the internal financial controls with reference to income) of ` 0.27 million for the year ended 31 March 2021,
FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL evidence about the adequacy of the internal financial controls financial statements may become inadequate because of in respect of one associate company, which is a company
STATEMENTS UNDER CLAUSE (I) OF SUB-SECTION 3 OF with reference to financial statements and their operating changes in conditions, or that the degree of compliance with covered under the Act, whose internal financial controls with
SECTION 143 OF THE COMPANIES ACT, 2013 (‘THE ACT’) effectiveness. Our audit of internal financial controls with the policies or procedures may deteriorate. reference to financial statements have not been audited by
reference to financial statements includes obtaining an us. The internal financial controls with reference to financial
1. In conjunction with our audit of the consolidated financial
understanding of such internal financial controls, assessing OPINION statements in so far as it relates to such subsidiary company
statements of Apollo Tyres Limited (‘the Holding Company’)
the risk that a material weakness exists, and testing and and associate company have been audited by other auditors
and its subsidiaries (the Holding Company and its subsidiaries 8. I n our opinion and based on the consideration of the
evaluating the design and operating effectiveness of whose reports have been furnished to us by the other
together referred to as ‘the Group’), its associate and joint reports of the other auditors on internal financial controls
internal control based on the assessed risk. The procedures auditors at the request of the management and our report
venture as at and for the year ended 31 March 2021, we with reference to financial statements of the subsidiary
selected depend on the auditor’s judgement, including the on the adequacy and operating effectiveness of the internal
have audited the internal financial controls with reference to company and associate company, the Holding Company,
assessment of the risks of material misstatement of the financial controls with reference to financial statements
financial statements of the Holding Company, its subsidiary its subsidiary company and its associate company, which
financial statements, whether due to fraud or error. for the Holding Company, its subsidiary company and its
company and its associate company, which are companies are companies covered under the Act, have in all material
associate company, as aforesaid, under Section 143(3)(i)
covered under the Act, as at that date. 5. We believe that the audit evidence we have obtained and respects, adequate internal financial controls with reference
of the Act in so far as it relates to such subsidiary company
the audit evidence obtained by the other auditors in terms to financial statements and such controls were operating
and associate company is based solely on the reports of the
RESPONSIBILITIES OF MANAGEMENT AND THOSE of their reports referred to in the Other Matters paragraph effectively as at 31 March 2021, based on the internal
auditors of such companies. Our opinion is not modified in
CHARGED WITH GOVERNANCE FOR INTERNAL below, is sufficient and appropriate to provide a basis for financial controls with reference to financial statements
respect of this matter with respect to our reliance on the
FINANCIAL CONTROLS our audit opinion on the internal financial controls with criteria established by the Company considering the
work done by and on the reports of the other auditors.
reference to financial statements of the Holding Company, essential components of internal control stated in the
2. The respective Board of Directors of the Holding Company,
its subsidiary company and its associate company as Guidance Note issued by the ICAI.
its subsidiary company and its associate company, which
aforesaid.
are companies covered under the Act, are responsible for For Walker Chandiok & Co LLP
OTHER MATTER
establishing and maintaining internal financial controls Chartered Accountants
MEANING OF INTERNAL FINANCIAL CONTROLS WITH
based on the internal financial controls with reference to 9. We did not audit the internal financial controls with Firm’s Registration No.: 001076N/N500013
REFERENCE TO FINANCIAL STATEMENTS
financial statements criteria established by the Company reference to financial statements in so far as it relates to
considering the essential components of internal control 6. A company’s internal financial controls with reference one subsidiary company, which is a company covered under Neeraj Goel
stated in the Guidance Note on Audit of Internal Financial to financial statements is a process designed to provide the Act, whose financial statements reflect total assets Partner
Controls over Financial Reporting (‘the Guidance Note’) reasonable assurance regarding the reliability of financial of ` 1.02 million and net assets of ` 0.93 million as at 31 Membership No.: 99514
issued by the Institute of Chartered Accountants of reporting and the preparation of financial statements for March 2021, total revenues of ` Nil and net cash inflows UDIN: 21099514AAAACY4201
India (‘ICAI’). These responsibilities include the design, external purposes in accordance with generally accepted amounting to ` 1.00 million for the year ended on that date,
implementation and maintenance of adequate internal accounting principles. A company’s internal financial as considered in the consolidated financial statements. Place: Gurugram
financial controls that were operating effectively for controls with reference to financial statements include those The consolidated financial statements also include the Date: 12 May 2021
ensuring the orderly and efficient conduct of the Company’s policies and procedures that (1) pertain to the maintenance Group’s share of net profit (including other comprehensive
business, including adherence to the Company’s policies, the of records that, in reasonable detail, accurately and fairly
safeguarding of its assets, the prevention and detection of reflect the transactions and dispositions of the assets of the
frauds and errors, the accuracy and completeness of the company; (2) provide reasonable assurance that transactions
accounting records, and the timely preparation of reliable are recorded as necessary to permit preparation of financial
financial information, as required under the Act. statements in accordance with generally accepted
accounting principles, and that receipts and expenditures
AUDITOR’S RESPONSIBILITY FOR THE AUDIT OF THE of the company are being made only in accordance with
INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO authorisations of management and directors of the
FINANCIAL STATEMENTS company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition,
3.  ur responsibility is to express an opinion on the internal
O
use, or disposition of the company’s assets that could have
financial controls with reference to financial statements of
a material effect on the financial statements.
the Holding Company, as aforesaid, based on our audit. We
conducted our audit in accordance with the Standards on
INHERENT LIMITATIONS OF INTERNAL FINANCIAL
Auditing issued by the ICAI prescribed under Section 143(10)
CONTROLS WITH REFERENCE TO FINANCIAL
of the Act, to the extent applicable to an audit of internal
STATEMENTS
financial controls with reference to financial statements,
and the Guidance Note issued by the ICAI. Those Standards 7.  ecause of the inherent limitations of internal financial
B
and the Guidance Note require that we comply with ethical controls with reference to financial statements, including
requirements and plan and perform the audit to obtain the possibility of collusion or improper management override
reasonable assurance about whether adequate internal of controls, material misstatements due to error or fraud
financial controls with reference to financial statements may occur and not be detected. Also, projections of any
were established and maintained and if such controls evaluation of the internal financial controls with reference
operated effectively in all material respects. to financial statements to future periods are subject to the

214 Apollo Tyres Ltd Annual Report 2020-21 215

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Consolidated Balance Sheet Consolidated Statement of Profit and Loss

as on March 31, 2021 for the year ended March 31, 2021

` Million ` Million
As on As on Year ended Year ended
Notes Notes
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
A. ASSETS 1. REVENUE FROM OPERATIONS
1. Non-current assets Sales 169,546.07 160,964.91
(a) Property, plant and equipment B1 145,241.99 134,733.70 Other operating income B24 4,423.92 2,537.04
(b) Capital work-in-progress 11,065.12 16,419.82 173,969.99 163,501.95
(c) Right of use assets C7 9,105.34 10,223.03 2. OTHER INCOME B25 1,293.84 236.76
(d) Goodwill C3 2,203.63 2,134.49 3. TOTAL INCOME (1 +2) 175,263.83 163,738.71
(e) Other intangible assets B1 7,644.73 7,392.78 4. EXPENSES
(f) Financial assets (a) Cost of materials consumed B26 70,653.00 70,498.26
i. Investment in associate / joint venture B2 46.44 46.17 (b) Purchase of stock-in-trade B26 20,093.43 18,341.14
ii. Other investments B3 149.02 148.00
(c) Changes in inventories of finished goods, stock-in-trade and 3,198.66 1,916.51
iii. Other financial assets B4 3,788.58 2,431.40
work-in-progress
(g) Deferred tax assets (net) C9 2,188.62 445.02
(h) Other non-current assets B5 2,314.66 3,710.68 (d) Employee benefits expense B26 25,133.71 24,821.99
Total non-current assets 183,748.13 177,685.09 (e) Finance costs B27 4,429.63 2,808.33
2. Current assets (f) Depreciation and amortisation expense B1 13,149.52 11,381.18
(a) Inventories B6 33,185.34 32,069.16 (g) Other expenses B26 26,916.55 28,536.92
(b) Financial assets Total expenses 163,574.50 158,304.33
i. Investments B7 900.68 - 5. PROFIT BEFORE SHARE OF PROFIT / (LOSS) IN ASSOCIATE / JOINT 11,689.33 5,434.38
ii. Trade receivables B8 13,808.18 9,398.76 VENTURE, EXCEPTIONAL ITEMS AND TAX (3 - 4)
iii. Cash and cash equivalents B9 9,713.49 7,386.41 6. SHARE OF PROFIT / (LOSS) IN ASSOCIATE / JOINT VENTURE 0.27 (0.01)
iv. Bank balances other than (iii) above B10 11,744.38 109.58 7. PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (5 + 6) 11,689.60 5,434.37
v. Other financial assets B11 3,242.44 1,083.02 8. EXCEPTIONAL ITEMS C29 6,077.44 -
(c) Other current assets B12 4,291.12 4,767.85 9. PROFIT BEFORE TAX (7 - 8) 5,612.16 5,434.37
Total current assets 76,885.63 54,814.78 10. TAX EXPENSE
TOTAL ASSETS (1+2) 260,633.76 232,499.87 (a) Current tax 2,247.47 1,274.05
B. EQUITY AND LIABILITIES (b) Deferred tax (137.44) (603.63)
1. Equity Total tax expense C9 2,110.03 670.42
(a) Share capital B13 635.10 572.05 11. NET PROFIT FOR THE YEAR (9 - 10) 3,502.13 4,763.95
(b) Other equity 113,796.21 98,728.09 12. OTHER COMPREHENSIVE INCOME / (LOSS)
Total equity 114,431.31 99,300.14
I i. Items that will not be reclassified to profit or loss
LIABILITIES (a) Remeasurement of defined benefit plans 173.79 (423.27)
2. Non-current liabilities ii. Income tax (55.58) 137.41
(a) Financial liabilities 118.21 (285.86)
i. Borrowings B14 48,081.83 51,478.84
II i. Items that will be reclassified to profit or loss
ii. Other financial liabilities B15 7,379.14 8,249.02
(a) Exchange differences in translating the financial statements of 980.23 (1,159.41)
(b) Provisions B16 1,557.88 1,677.13
foreign operations
(c) Deferred tax liabilities (net) C9 9,208.77 7,476.89
(d) Other non-current liabilities B17 12,668.20 7,183.54 (b) Effective portion of gain / (loss) on designated portion of hedging 25.51 (163.71)
Total non-current liabilities 78,895.82 76,065.42 instruments in a cash flow hedge
3. Current liabilities ii. Income tax (8.91) 57.21
(a) Financial liabilities 996.83 (1,265.91)
i. Borrowings B18 3,033.43 14,320.01 Other comprehensive income / (loss) (I + II) 1,115.04 (1,551.77)
ii. Trade payables Total comprehensive income / (loss) for the year (11 + 12) 4,617.17 3,212.18
- Total outstanding dues of micro enterprises and small enterprises 629.03 170.80 Earnings per equity share of ` 1 each C30
- Total outstanding dues of creditors other than micro enterprises and B19 27,438.00 22,919.68 5.68 8.33
(a) Basic (`)
small enterprises
(b) Diluted (`) 5.68 8.33
iii. Other financial liabilities B20 27,360.56 13,603.20
(b) Other current liabilities B21 5,025.83 2,663.29 See accompanying notes forming part of the financial statements
(c) Provisions B22 2,882.18 2,744.10 In terms of our report attached For and on behalf of the Board of Directors
(d) Current tax liabilities (net) B23 937.60 713.23
For Walker Chandiok & Co LLP
Total current liabilities 67,306.63 57,134.31
TOTAL EQUITY AND LIABILITIES (1+2+3) 260,633.76 232,499.87 Chartered Accountants
Firm’s Registration No. 001076N/N500013 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
See accompanying notes forming part of the financial statements
Chairman & Managing Director Vice Chairman & Managing Director Director
In terms of our report attached For and on behalf of the Board of Directors
Neeraj Goel DIN 00058921 DIN 00058951 DIN 00041867
For Walker Chandiok & Co LLP Partner
Chartered Accountants
Membership No. 99514 GAURAV KUMAR SEEMA THAPAR
Firm’s Registration No. 001076N/N500013 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chief Financial Officer Company Secretary
Chairman & Managing Director Vice Chairman & Managing Director Director
Gurugram London Membership No - FCS 6690
Neeraj Goel DIN 00058921 DIN 00058951 DIN 00041867 May 12, 2021 May 12, 2021
Partner
Membership No. 99514 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Gurugram London Membership No - FCS 6690
May 12, 2021 May 12, 2021

216 Apollo Tyres Ltd Annual Report 2020-21 217

218
Consolidated Statement of Changes in Equity
for the year ended March 31, 2021
OTHER EQUITY

` Million
Reserves and surplus (refer note C6) Items of other comprehensive income
Capital Capital Effective Foreign
Particulars Capital Debenture Capital Total
Securities General reserve on Capital reserve on Retained portion of Revaluation currency
reserve on redemption redemption
premium reserve AMHPL subsidy forfeiture earnings cash flow surplus translation
consolidation reserve reserve
merger of shares hedge reserve
Balance as on March 31, 2019 20,866.72 14,006.63 2,664.95 1,383.68 1,039.50 25.50 44.40 0.07 62,167.25 (7.41) 31.22 (2,396.37) 99,826.14
Profit for the year - - - - - - - - 4,763.95 - - - 4,763.95
Other Comprehensive income (OCI) for the year - - - - - - - - - (163.71) - (1,159.41) (1,323.12)
Income tax on OCI items - - - - - - - - - 57.21 - - 57.21
Remeasurement of defined benefit plans - - - - - - - - (423.27) - - - (423.27)
Income tax on remeasurement of defined benefit plans - - - - - - - - 137.41 - - - 137.41
Total comprehensive income for the year - - - - - - - - 4,478.09 (106.50) - (1,159.41) 3,212.18
Transaction with owners in their capacity as owners
Payment of dividend (` 3.25 per share) - - - - - - - - (1,859.16) - - - (1,859.16)
Payment of interim dividend (` 3.00 per share) - - - - - - - - (1,716.15) - - - (1,716.15)
Tax there on - - - - - - - - (734.92) - - - (734.92)
(dividend and interim dividend)
Transfer from retained earnings 1,000.00 (1,000.00) - - - -
Balance as on March 31, 2020 20,866.72 15,006.63 2,664.95 1,383.68 1,039.50 25.50 44.40 0.07 61,335.11 (113.91) 31.22 (3,555.78) 98,728.09
Profit for the year - - - - - - - - 3,502.13 - - - 3,502.13
Other Comprehensive income (OCI) for the year - - - - - - - - 25.51 - 980.23 1,005.74
Income tax on OCI items - - - - - - - - (8.91) - - (8.91)
Remeasurement of defined benefit plans - - - - - - - - 173.79 - - - 173.79
Income tax on remeasurement of defined benefit plans - - - - - - - - (55.58) - - - (55.58)
Total comprehensive income for the year - - - - - - - - 3,620.34 16.60 - 980.23 4,617.17
Factsheet
Corporate

Transaction with owners in their capacity as owners

Share premium on issue of shares, net 10,450.95 - - - - - - - - - - - 10,450.95
Transfer from retained earnings - 1,000.00 - - - - - - (1,000.00) - - - -
Balance as on March 31, 2021 31,317.67 16,006.63 2,664.95 1,383.68 1,039.50 25.50 44.40 0.07 63,955.45 (97.31) 31.22 (2,575.55) 113,796.21
In terms of our report attached For and on behalf of the Board of Directors
For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No. 001076N/N500013 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman & Managing Director Vice Chairman & Managing Director Director
From our
Leadership

Neeraj Goel DIN 00058921 DIN 00058951 DIN 00041867

Partner
Membership No. 99514 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Gurugram London Membership No - FCS 6690
May 12, 2021 May 12, 2021
Apollo Tyres
Value Creation at

Apollo Tyres Ltd

B
A
(i)

(ii)

liabilities
Our ESG

Inventories
Performance

Finance cost

investments)
Trade payables
Interest income

Interest received
intangible assets
operating assets

Trade receivables
Adjustments for

Annual Report 2020-21

Net profit before tax

and intangible assets

State aid subsidy received

Changes in working capital
Exceptional item (non-cash)

Investments in mutual funds

Unwinding of deferred income
Unwinding of state aid subsidy

Direct taxes paid (net of refund)

Investments in fixed deposits, net

(iii) Cash generated from operations

Non-current investment made, net

Provisions (current and non-current)

Net cash used in investing activities

for the year ended March 31, 2021

Other assets (current and non-current)

Management

Provision for doubtful debts / advances

Depreciation and amortisation expense

Adjustments for (increase) / decrease in

Other liabilities (current and non-current)

Discussion & Analysis

Dividends received (current and non-current

CASH FLOW FROM INVESTING ACTIVITIES
CASH FLOW FROM OPERATING ACTIVITIES

Net cash generated from operating activities

Purchase of property, plant and equipment and

Other financial assets (current and non-current)
Share of (profit) / loss in associate / joint venture

Operating profit before working capital changes

Other financial liabilities (current and non-current)

Dividend from non-current and current investments

Adjustments for increase / (decrease) in operating

Provisions / liabilities no longer required written back

Proceeds from sale of property, plant and equipment

(Profit) on sale of property, plant and equipment (net)

Unrealized (gain) / loss on foreign exchange fluctuations

Reports
Statutory

667.29
-
2.88
339.13
120.57
6,666.81
2,067.96
4,961.85
57.38
1,395.48
4,429.63
140.73
13,149.52

(11,650.00)
(0.24)
(900.00)
(11,902.23)
(3,874.08)
(4,500.69)
(884.01)
(192.93)
(0.27)
(203.77)
(1,572.57)
(821.03)
(9.09)
(2.88)
(36.66)
Consolidated Cash Flow Statement
Financial
Statements

24,468.74
26,504.11
13,817.19
21,888.32
16,276.16
5,612.16
March 31, 2021
Year ended

(2,035.37)
(9,201.40)

(23,443.17)
55.96
171.80
2.67
-
-
306.11
1,149.14
1,383.46
3,984.24
3,799.98
437.45
0.01
-
2,808.33
76.83
11,381.18

(134.01)
(28,361.19)
(125.42)
(1,608.50)
(420.21)
(210.75)
(166.58)
(1,735.41)
(55.82)
(11.73)
(2.67)
(19.67)

25,173.60
26,098.23
798.68
7,153.26
18,146.29
12,711.92
5,434.37
March 31, 2020
Year ended
` Million

(924.63)

(27,958.66)

219
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Consolidated Cash Flow Statement A. Notes

for the year ended March 31, 2021 forming Part of the Consolidated Financial Statements

` Million
1. GROUP CORPORATE INFORMATION information’ in the notes forming part of the standalone
Year ended Year ended
March 31, 2021 March 31, 2020 financial statements
 The Apollo Tyres Group consists of Apollo Tyres Limited
C CASH FLOW FROM FINANCING ACTIVITIES (the ‘Company’), the ultimate holding company with • The amendments are extensive and the Group will
Proceeds from issue of compulsary convertible 10,800.00 -
several foreign subsidiaries, associates and a joint venture evaluate the same to give effect to them as required
preference shares
(together referred to as the ‘Group’). Established in 1972, by law.
Proceeds from non-current borrowings 10,775.49 23,537.11
the Group is in the business of manufacturing and sale of
Repayment of non-current borrowings (3,018.94) (18,141.07) 2.2 Amended standards adopted by the group
tyres. The Group has its headquarter in Gurgaon, India
Proceeds from / (Repayment of) current borrowings (net) (10,978.94) 8,466.93  The group has applied the following standards and
and operations spread all across the Globe.
Payment of dividend (including dividend tax) - (4,310.23) amendments for the first time for their annual reporting
Payment of lease liabilities (2,649.42) (2,595.62)  The product portfolio of the Group consists of tyres of period commencing 1 April 2020:
Finance charges paid (3,406.67) (2,232.44) passenger car, sports utility vehicle, multi utility vehicle,
Net cash generated from financing activities 1,521.52 4,724.68 • Definition of material - amendments to Ind AS 1 and Ind
light truck, truck–bus, agriculture, industrial, specialty,
D EFFECT OF FOREIGN CURRENCY FLUCTUATION 23.41 (214.51) AS 8
bicycle and off highway tyres, retreading material and
ARISING OUT OF CONSOLIDATION
tyres, alloy wheels and two-wheeler tyres. • Covid-19 related concessions - amendments to Ind AS
Net increase in cash and cash equivalents (A+B+C+D) 2,570.50 1,725.11
116
Cash and cash equivalents as at the beginning of the year 7,386.41 5,554.66
2.1 RECENT ACCOUNTING PROUNCEMENTS
Less: Cash credits / bank overdrafts as at the 1,059.70 941.60 • The amendments listed above did not have any impact
  n March 24, 2021, the Ministry of Corporate Affairs
O
beginning of the year on the amounts recognised in prior periods and are not
(“MCA”) through a notification, amended Schedule III of
6,326.71 4,613.06 expected to significantly effect the current or future
(Gain) / loss on re-statement of foreign currency cash 20.44 8.98 the Companies Act, 2013. The amendments revise Division
periods.
and cash equivalents I, II and III of Schedule III and are applicable from April 1,
Adjusted cash and cash equivalents as at the 6,347.15 4,622.04 2021. Key amendments relating to Division II which relate 3. BASIS OF CONSOLIDATION AND SIGNIFICANT
beginning of the year to companies whose financial statements are required to ACCOUNTING POLICIES
comply with Companies (Indian Accounting Standards)
3.1 Statement of compliance
Cash and cash equivalents as at the end of the year 9,713.49 7,386.41 Rules 2015 are:
  he consolidated financial statements have been prepared
T
Less: Cash credits / bank overdrafts as at the end of 812.02 1,059.70
the year to comply in all material respects with Indian Accounting
Balance Sheet:
8,901.47 6,326.71 Standards (hereinafter referred to as the ‘Ind AS’) as
• Lease liabilities should be separately disclosed under the
(Gain) / loss on re-statement of foreign currency cash 16.18 20.44 notified by Ministry of Corporate Affairs under Section
head ‘financial liabilities’, duly distinguished as current
and cash equivalents 133 of the Companies Act, 2013 (‘the Act’) read with the
or non-current.
Adjusted cash and cash equivalents as at the end of 8,917.65 6,347.15 Companies (Indian Accounting Standards) Rules, 2015, as
the year • Certain additional disclosures in the statement of amended and other relevant provisions of the Act.
changes in equity such as changes in equity share capital
See accompanying notes forming part of the financial statements  he consolidated financial statements are presented in
T
In terms of our report attached For and on behalf of the Board of Directors due to prior period errors and restated balances at the
Indian Rupee (‘INR’), which is also the functional currency
For Walker Chandiok & Co LLP beginning of the current reporting period.
of the Company.
Chartered Accountants
• Specified format for disclosure of shareholding of
Firm’s Registration No. 001076N/N500013 ONKAR KANWAR NEERAJ KANWAR VINOD RAI The consolidated financial statements for the year ended
promoters.
Chairman & Managing Director Vice Chairman & Managing Director Director March 31, 2021 were authorised and approved for issue
Neeraj Goel DIN 00058921 DIN 00058951 DIN 00041867 • Specified format for ageing schedule of trade by the Board of Directors on May 12, 2021.
Partner receivables, trade payables, capital work-in-progress
Membership No. 99514 GAURAV KUMAR SEEMA THAPAR and intangible asset under development. 3.2 Basis of preparation and presentation of
Chief Financial Officer Company Secretary
consolidated financial statements
Gurugram London Membership No - FCS 6690 • If a company has not used funds for the specific purpose
May 12, 2021 May 12, 2021  he consolidated financial statements have been prepared
T
for which it was borrowed from banks and financial
on accrual basis under the historical cost convention except
institutions, then disclosure of details of where it has
for certain financial instruments that are measured at fair
been used.
value at the end of each reporting period, as explained in
• Specific disclosure under ‘additional regulatory the accounting policies below.
requirement’ such as compliance with approved schemes
 istorical cost is generally based on the fair value of the
H
of arrangements, compliance with number of layers of
consideration given in exchange for goods and services.
companies, title deeds of immovable property not held
in name of company, loans and advances to promoters,   air value is the price that would be received to sell
F
directors, key managerial personnel (KMP) and related an asset or paid to transfer a liability in an orderly
parties, details of benami property held etc transaction between market participants at the
measurement date, regardless of whether that price is
Statement of profit and loss:
directly observable or estimated using another valuation
• Additional disclosures relating to Corporate Social
technique. In estimating the fair value of an asset or a
Responsibility (CSR), undisclosed income and crypto
liability, the Group takes into account the characteristics
or virtual currency specified under the head ‘additional
of the asset or liability if market participants would

220 Apollo Tyres Ltd Annual Report 2020-21 221

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

take those characteristics into account when pricing the  he Group combines the financial statements of the
T the acquisition date) about facts and circumstances that the same form in which they appeared in the financial
asset or liability at the measurement date. Fair value Company and its subsidiaries line by line adding together existed at the acquisition date. statements of the transferor.
for measurement and/or disclosure purposes in these like items of assets, liabilities, equity, income and expenses
 he subsequent accounting for changes in the fair value
T
consolidated financial statements is determined on above 3.5 Investments in associates and joint venture
of the contingent consideration that do not qualify
basis, except for share-based payment transactions that 3.4 Business combinations An associate is an entity over which the Group has
as measurement period adjustments depends on how
are within the scope of Ind AS 102 Share-based Payment,   cquisitions of businesses are accounted for using the
A significant influence. Significant influence is the power to
the contingent consideration is classified. Contingent
lease transactions that are within the scope of Ind AS 116 acquisition method. The consideration transferred in a participate in the financial and operating policy decisions
consideration that is classified as equity is not remeasured
Leases, and measurements that have some similarities business combination is measured at fair value, which is of the investee but is not control or joint control over those
at subsequent reporting dates and its subsequent
to fair value but are not fair value, such as net realisable calculated as the sum of the acquisition-date fair values policies.
settlement is accounted for within equity. Contingent
value in Ind AS 2 Inventories or value in use in Ind AS 36 of the assets transferred by the Group, liabilities incurred
consideration that is classified as an asset or a liability is   joint venture is a joint arrangement whereby the
A
Impairment of Assets. by the Group to the former owners of the acquiree and the
remeasured at fair values at subsequent reporting dates parties that have joint control of the arrangement have
equity interests issued by the Group in exchange of control
 I n addition, for financial reporting purposes, fair value with the corresponding gain or loss being recognised in rights to the net assets of the joint arrangement. Joint
of the acquiree. Acquisition-related costs are generally
measurements are categorised into Level 1, 2 or 3 consolidated statement of profit and loss. control is the contractually agreed sharing of control of
recognised in consolidated statement of profit and loss as
based on the degree to which the inputs to the fair value an arrangement, which exists only when decisions about
incurred.   hen a business combination is achieved in stages, the
W
measurements are observable and the significance of the the relevant activities require unanimous consent of the
Group’s previously held equity interest in the acquiree
inputs to the fair value measurement in its entirety, which At the acquisition date, the identifiable assets acquired parties sharing control.
is remeasured to its acquisition-date fair value and the
are described as follows: and the liabilities assumed are recognised at their fair
resulting gain or loss, if any, is recognised in consolidated  he results and assets and liabilities of associates or joint
T
value, except that:
• Level 1 inputs are quoted prices (unadjusted) in active statement of profit and loss. Amounts arising from ventures are incorporated in these consolidated financial
markets for identical assets or liabilities that the entity • deferred tax assets or liabilities, and assets or interests in the acquiree prior to the acquisition date that statements using the equity method of accounting,
can access at the measurement date; liabilities related to employee benefit arrangements have previously been recognised in other comprehensive except when the investment, or a portion thereof, is
are recognised and measured in accordance with Ind income are reclassified to consolidated statement of profit classified as held for sale, in which case it is accounted for
• Level 2 inputs are inputs, other than quoted prices
AS 12 Income Taxes and Ind AS 19 Employee Benefits and loss where such treatment would be appropriate if in accordance with Ind AS 105 Non-current Assets Held
included within Level 1, that are observable for the asset
respectively; that interest were disposed of. for Sale and Discontinued Operations. Under the equity
or liability, either directly or indirectly; and
method, an investment in an associate or a joint venture
• liabilities or equity instruments related to share-based If the initial accounting for a business combination is
• Level 3 inputs are unobservable inputs for the asset or is initially recognised in the consolidated balance sheet
payment arrangements of the acquiree or share-based incomplete by the end of the reporting period in which
liability. at cost and adjusted thereafter to recognise the Group’s
payment arrangements of the Group entered into to the combination occurs, the Group reports provisional
share of the profit and loss of the associate or joint venture.
The principal accounting policies are set out below: replace share-based payment arrangements of the amounts for the items for which the accounting is
When the Group’s share of losses of an associate or a joint
acquiree are measured in accordance with Ind AS 102 incomplete. Those provisional amounts are adjusted during
3.3 Basis of consolidation venture exceeds the Group’s interest in that associate or
Share-based Payment at the acquisition date; and the measurement period (see above), or additional assets
The consolidated financial statements includes the joint venture (which includes any long-term interests that,
or liabilities are recognised, to reflect new information
financial statements of the Company, its subsidiaries and • assets (or disposal groups) that are classified as held for in substance, form part of the Group’s net investment in
obtained about facts and circumstances that existed at
the entities controlled by the Group as at March 31, 2021. sale in accordance with Ind AS 105 Non-current Assets the associate or joint venture), the Group discontinues
the acquisition date that, if known, would have affected
Control is achieved when the Group: Held for Sale and Discontinued Operations are measured recognising its share of further losses.
the amounts recognised at that date.
in accordance with that Standard.
• has power over the investee;  Additional losses are recognised only to the extent that
 usiness combinations involving entities or businesses
B
Goodwill is measured as the excess of the sum of the the Group has incurred legal or constructive obligations
• has the ability to use its power to affect its return; and. under common control are accounted for using the pooling
consideration transferred, the amount of any non- or made payments on behalf of the associate or joint
of interest method.
• i s exposed, or has rights, to variable returns from its controlling interests in the acquiree, and the fair value venture.
involvement with the investee of the acquirer’s previously held equity interest in the The pooling of interest method is considered to involve the
A n investment in an associate or a joint venture is
acquiree (if any) over the net of the acquisition-date following:
 The Group reassesses whether or not it controls an accounted for using the equity method from the date on
amounts of the identifiable assets acquired and the
investee if facts and circumstances indicate that there are (i) T
 he assets and liabilities of the combining entities are which the investee becomes an associate or a joint venture.
liabilities assumed.
changes to one or more of the three elements of control reflected at their carrying amounts. On acquisition of the investment in an associate or a joint
listed above.  hen the consideration transferred by the Group in a
W venture, any excess of the cost of the investment over the
(ii) N
 o adjustments are made to reflect fair values, or
business combination includes assets or liabilities resulting Group’s share of the net fair value of the identifiable assets
 onsolidation of a subsidiary begins when the Group
C recognise any new assets or liabilities. The only
from a contingent consideration arrangement, the and liabilities of the investee is recognised as goodwill,
obtains control over the subsidiary and ceases when the adjustments that are made are to harmonise
contingent consideration is measured at its acquisition- which is included within the carrying amount of the
Group loses control of the subsidiary. Specifically, income accounting policies.
date fair value and included as part of the consideration investment. Any excess of the Group’s share of the net
and expenses of a subsidiary acquired or disposed of during
transferred in a business combination. Changes in the (iii) T
 he financial information in the financial statements fair value of the identifiable assets and liabilities over the
the year are included in the consolidated statement of
fair value of the contingent consideration that qualify in respect of prior periods is restated as if the business cost of the investment, after reassessment, is recognised
profit and loss from the date the Group gains control until
as measurement period adjustments are adjusted combination had occurred from the beginning of directly in equity as capital reserve in the period in which
the date when the Group ceases to control the subsidiary.
retrospectively, with corresponding adjustments the preceding period in the financial statements, the investment is acquired.
 Adjustments are made to the financial statements of against goodwill or capital reserve, as the case maybe. irrespective of the actual date of the business
After application of the equity method of accounting, the
subsidiaries to bring their accounting policies into line with Measurement period adjustments are adjustments that combination.
Group determines whether there is any objective evidence
the Group’s accounting policies. arise from additional information obtained during the
(iv) T
 he identity of the reserves has been preserved and of impairment as a result of one or more events that
‘measurement period’ (which cannot exceed one year from
appear in the financial statements of the transferee in occurred after the initial recognition of the net investment

222 Apollo Tyres Ltd Annual Report 2020-21 223

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

in an associate or a joint venture and that event (or events) other comprehensive income relating to that reduction in for all taxable temporary differences. Deferred tax assets income or directly in equity respectively. Where current
has an impact on the estimated future cash flows from the ownership interest if that gain or loss would be reclassified are generally recognised for all deductible temporary tax or deferred tax arises from the initial accounting for
net investment that can be reliably estimated. If there to consolidated statement of profit and loss on the differences to the extent that it is probable that taxable a business combination, the tax effect is included in the
exists such an objective evidence of impairment, then it disposal of the related assets or liabilities. profits will be available against which those deductible accounting for the business combination.
is necessary to recognise impairment loss with respect to temporary differences can be utilised. Such deferred tax
W hen a group entity transacts with an associate or a
the Groups investment in an associate or a joint venture. assets and liabilities are not recognised if the temporary 3.8 Property, plant and equipment (PPE)
joint venture of the Group, profits and losses resulting
difference arises from the initial recognition of assets and  and and buildings held for use in the production or supply
L
 hen necessary, the entire carrying amount of the
W from the transactions with the associate or joint venture
liabilities in a transaction that affects neither the taxable of goods or services, or for administrative purposes, are
investment (including goodwill) is tested for impairment are recognised in the Group’s consolidated financial
profit nor the accounting profit. stated in the consolidated balance sheet at cost less
in accordance with Ind AS 36 Impairment of Assets as a statements only to the extent of interests in the associate
accumulated depreciation and accumulated impairment
single asset by comparing its recoverable amount (higher or joint venture that are not related to the Group.   eferred tax liabilities are recognised for taxable
D
losses. Freehold land is not depreciated.
of value in use and fair value less costs of disposal) with temporary differences associated with investments in
its carrying amount, any impairment loss recognised 3.6 Inventories subsidiaries and associates, and interests in joint ventures, Properties in the course of construction for production,
forms part of the carrying amount of the investment. Inventories are valued at the lower of cost and estimated except where the Group is able to control the reversal supply or administrative purposes are carried at cost, less
Any reversal of that impairment loss is recognised in net realisable value (net of allowances) after providing of the temporary difference and it is probable that the any recognised impairment loss. For qualifying assets,
accordance with Ind AS 36 Impairment of Assets to the for obsolescence and other losses, where considered temporary difference will not reverse in the foreseeable borrowing costs are capitalised in accordance with the
extent that the recoverable amount of the investment necessary. The cost comprises cost of purchase, cost future. Deferred tax assets arising from deductible Ind AS 23 Borrowing Costs. Such properties are classified
subsequently increases. of conversion and other costs including appropriate temporary differences associated with such investments to the appropriate categories of property, plant and
production overheads in the case of finished goods and and interests are only recognised to the extent that it equipment when completed and ready for intended use.
The Group discontinues the use of the equity method from
work in progress, incurred in bringing such inventories to is probable that there will be sufficient taxable profits Depreciation of these assets, on the same basis as other
the date when the investment ceases to be an associate or
their present location and condition. Trade discounts or against which the temporary differences can be utilised property assets, commences when the assets are ready
a joint venture, or when the investment is classified as held
rebates are deducted in determining the costs of purchase. and they are expected to reverse in the foreseeable future. for their intended use.
for sale. When the Group retains an interest in the former
Net realisable value represents the estimated selling price
associate or joint venture and the retained interest is a The carrying amount of deferred tax assets is reviewed Fixtures and equipment are stated at cost less accumulated
for inventories less all estimated costs of completion and
financial asset, the Group measures the retained interest at the end of each reporting period and reduced to the depreciation and accumulated impairment losses.
costs necessary to make the sale.
at fair value at that date and the fair value is regarded extent that it is no longer probable that sufficient taxable
Property, plant and equipment are capitalised at costs
as its fair value on initial recognition in accordance with In case of raw materials, stores and spares and traded profits will be available to allow all or part of the asset to
relating to the acquisition and installation (net of tax
Ind AS 109 Financial Instruments. The difference between goods, cost (net of tax credits wherever applicable) is be recovered.
credits wherever applicable) and include finance cost on
the carrying amount of the associate or joint venture at determined on a moving weighted average basis, and,
M inimum alternate tax (‘MAT’) credit entitlement is borrowed funds attributable to acquisition of qualifying
the date the equity method was discontinued, and the in case of work in progress and finished goods, cost is
recognised as an asset only when and to the extent there fixed assets for the period up to the date when the asset
fair value of any retained interest and any proceeds from determined on a First In First Out basis.
is convincing evidence that normal income tax will be paid is ready for its intended use, and adjustments arising
disposing of a part interest in the associate or joint venture
during the specified period. In the year in which MAT credit from foreign exchange differences arising on foreign
is included in the determination of the gain or loss on 3.7 Taxation
becomes eligible to be recognised as an asset is created currency borrowings to the extent they are regarded as an
disposal of the associate or joint venture. In addition, the Income tax expense recognised in consolidated statement
by way of a credit to the consolidated statement of profit adjustment to interest costs. Other incidental expenditure
Group accounts for all amounts previously recognised in of profit and loss comprises of the sum of deferred tax
and loss. This is reviewed at each balance sheet date and attributable to bringing the fixed assets to their working
other comprehensive income in relation to that associate and current tax except the ones recognised in other
the carrying amount of MAT credit entitlement is written condition for intended use are capitalised. Subsequent
or joint venture on the same basis as would be required if comprehensive income or directly in equity.
down to the extent it is not reasonably certain that normal expenditure relating to fixed assets is capitalised only
that associate or joint venture had directly disposed of
income tax will be paid during the specified period. if such expenditure results in an increase in the future
the related assets or liabilities. Therefore, if a gain or loss Current Tax
benefits from such asset beyond its previously assessed
previously recognised in other comprehensive income by  Current tax is the amount of tax payable on the taxable  eferred tax liabilities and assets are measured at the tax
D
standard of performance. Depreciation is recognised
that associate or joint venture would be reclassified to income for the year as determined in accordance with the rates that are expected to apply in the period in which the
so as to write off the cost or valuation of assets (other
consolidated statement of profit and loss on the disposal applicable income tax laws of the country in which the liability is settled or the asset realised, based on tax rates
than freehold land and properties under construction)
of the related assets or liabilities, the Group reclassifies respective entities in the group are incorporated. Taxable (and tax laws) that have been enacted or substantively
less their residual values over their useful lives, using the
the gain or loss from equity to consolidated statement of profit differs from ‘profit before tax’ as reported in the enacted by the end of the reporting period.
straight-line method. The estimated useful lives, residual
profit and loss (as a reclassification adjustment) when the consolidated statement of profit and loss because of items
 The measurement of deferred tax liabilities and assets values and depreciation method are reviewed at the end
equity method is discontinued. of income or expense that are taxable or deductible in
reflects the tax consequences that would follow from the of each reporting period, with the effect of any changes
other years and items that are never taxable or deductible.
 The Group continues to use the equity method when an manner in which the Group expects, at the end of the in estimate accounted for on a prospective basis.
The current tax is calculated using tax rates that have
investment in an associate becomes an investment in a reporting period, to recover or settle the carrying amount
been enacted or substantively enacted by the end of the   he management believes that these estimated useful
T
joint venture or an investment in a joint venture becomes of its assets and liabilities.
reporting period. lives are realistic and reflect fair approximation of the
an investment in an associate. There is no remeasurement
period over which the assets are likely to be used.
to fair value upon such changes in ownership interests. Current and deferred tax for the year
Deferred tax
 Current and deferred tax are recognised in consolidated  ssets held under finance leases are depreciated over
A
 hen the Group reduces its ownership interest in an
W  Deferred tax is recognised on temporary differences
statement of profit and loss, except when they relate to their expected useful lives on the same basis as owned
associate or a joint venture but the Group continues between the carrying amount of assets and liabilities
items that are recognised in other comprehensive income assets. However, when there is no reasonable certainty
to use the equity method, the Group reclassifies to in the financial statements and quantified using the tax
or directly in equity, in which case, the current and that ownership will be obtained by the end of the lease
consolidated statement of profit and loss the proportion rates and laws enacted or substantively enacted as on the
deferred tax are also recognised in other comprehensive
of the gain or loss that had previously been recognised in Balance Sheet date. Deferred tax liabilities are recognised

224 Apollo Tyres Ltd Annual Report 2020-21 225

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

term, assets are depreciated over the shorter of the lease A) Derecognition of intangible assets basis to creating, producing and making the asset ready 3.12 Employee benefits
term and their useful lives. An intangible asset is derecognised upon disposal or when for its intended use. Property, Plant and Equipment  mployee benefits include wages and salaries, provident
E
no future economic benefits are expected to arise from utilised for research and development are capitalised fund, superannuation fund, employee state insurance
The estimated average useful life considered for the assets
the continued use of the asset. Gains or losses arising and depreciated in accordance with the policies stated scheme, gratuity fund, compensated absences, social
are as under.
from derecognition of an intangible asset, measured as for Property, Plant and Equipment. security cost and other pension costs incurred by the group.
Category of assets No. of years the difference between the net disposal proceeds and
Buildings 5 - 60 the carrying amount of the asset, are recognised in the c) Intangible assets acquired in a business combination Defined contribution plans
Plant and equipment 3 – 25 consolidated statement of profit and loss when the asset I ntangible assets acquired in a business combination Contributions to defined contribution plans are recognised
Electrical installations 1 - 10 is derecognised. and recognised separately from goodwill are initially as an expense when employees have rendered service
Furniture and fixtures 4 - 10 recognised at their fair value at the acquisition date entitling them to the contributions.
Vehicles 4 - 10 b) Research and development expenses (which is regarded as their cost).
Office equipment 4 – 10 Internally generated intangible assets - Expenditure on Defined benefit plans
 ubsequent to initial recognition, intangible assets
S
 easehold land / Improvements thereon are amortised
L research activities is recognised as an expense in the For defined benefit plans, the cost of providing benefits is
acquired in a business combination are reported at
over the primary period of lease. period in which it is incurred. determined using the projected unit credit method, with
cost less accumulated amortisation and accumulated
actuarial valuations being carried out at the end of each
An item of property, plant and equipment is derecognised A n internally generated intangible asset arising from impairment losses, on the same basis as intangible assets
annual reporting period. Re-measurement, comprising
upon disposal or when no future economic benefits are development (or from the development phase of an that are acquired separately.
actuarial gains and losses, the effect of the changes to
expected to arise from the continued use of the asset. Any internal project) is recognised if, and only if, all of the
the asset ceiling (if applicable) and the return on plan
gain or loss arising on the disposal or retirement of an item following have been demonstrated: 3.10 Revenue recognition
assets (excluding net interest), is reflected immediately
of property, plant and equipment is determined as the I n accordance with Ind AS 115, the Group recognizes the
• the technical feasibility of completing the intangible in the consolidated balance sheet with a charge or credit
difference between the sales proceeds and the carrying amount as revenue from contracts with customers, which
asset so that it will be available for use or sale recognised in other comprehensive income in the period in
amount of the asset and is recognised in consolidated is received for the transfer of promised goods to customers
which they occur. The re-measurements of the net defined
statement of profit and loss. • the intention to complete the intangible asset and use in exchange for those goods. The relevant point in time
benefit liability are recognised directly in the other
or sell it; or period of time is the transfer of control of the goods
comprehensive income in the period in which they arise.
3.9 Intangible assets (control approach). The Group recognizes revenue at point
• the ability to use or sell the intangible asset; Past service cost is recognised in consolidated statement
I ntangible assets with finite useful lives are carried at in time. Revenue is reduced for customer returns, taxes on
of profit and loss in the period of a plan amendment. Net
cost less accumulated amortisation and impairment • how the intangible asset will generate probable future sales, estimated rebates and other similar allowances. To
interest is calculated by applying the discount rate at the
losses, if any. Intangible assets with indefinite useful economic benefits; determine when to recognize revenue and at what amount,
beginning of the period to the net defined benefit liability
lives that are acquired separately are carried at cost less the five-step model is applied. By applying the five-step
• the availability of adequate technical, financial and or asset. Defined benefit costs are categorised as follows:
accumulated impairment losses. The cost of an intangible model distinct performance obligations are identified.
other resources to complete the development and to
asset comprises its purchase price, including any import The transaction price is determined and allocated to the • service cost (including current service cost, past service
use or sell the intangible asset; and
duties and other taxes (other than those subsequently performance obligations according to the requirements cost, as well as gains and losses on curtailments and
recoverable from the tax authorities), and any directly • the ability to measure reliably the expenditure of Ind AS 115. Performance obligations are deemed to settlements);
attributable expenditure on making the asset ready for its attributable to the intangible asset during its have been met when the control of goods is transferred
• net interest expense or income; and
intended use and net of any trade discounts and rebates. development. to the customer, i.e., generally when the goods have been
Subsequent expenditure on an intangible asset after its delivered to the customer. • re-measurement
purchase / completion is recognised as an expense when The amount initially recognised for internally-generated
Revenues for services are recognised when the service
incurred unless it is probable that such expenditure will intangible assets is the sum of the expenditure incurred  he retirement benefit obligation recognised in the
T
rendered has been completed.
enable the asset to generate future economic benefits in from the date when the intangible asset first meets the consolidated balance sheet represents the actual deficit
excess of its originally assessed standards of performance recognition criteria listed above. Where no internally- or surplus in the Group’s defined benefit plans. Any
3.11 Other income
and such expenditure can be measured and attributed to generated intangible asset can be recognised, surplus resulting from this calculation is limited to the
Dividend income from investments is recognised when the
the asset reliably, in which case such expenditure is added development expenditure is recognised in consolidated present value of any economic benefits available in the
right to receive payment has been established (provided
to the cost of the asset. statement of profit and loss in the period in which it is form of refunds from the plans or reductions in future
that it is probable that the economic benefits will flow to
incurred. contributions to the plans.
The intangible assets are amortised over their respective the Group and the amount of income can be measured
individual estimated useful lives on a straight-line basis,  ubsequent to initial recognition, internally-generated
S reliably).
Other short-term and long-term employee benefits
commencing from the date the asset is available to the intangible assets are reported at cost less accumulated
I nterest income from a financial asset is recognised when Liabilities recognised in respect of short-term employee
group for its use. The amortisation period are reviewed amortisation and accumulated impairment losses, on
it is probable that the economic benefits will flow to the benefits are measured at the undiscounted amount of the
at the end of each financial year and the amortisation the same basis as intangible assets that are acquired
group and the amount of income can be measured reliably. benefits expected to be paid in exchange for the related
method is revised to reflect the changed pattern. separately.
Interest income is accrued on a time basis, by reference service.
 he estimated average useful life considered for the major
T Development costs of products are also charged to to the principle outstanding and at the effective interest
 iabilities recognised in respect of other long-term
L
intangible assets are as under the consolidated statement of profit and loss unless a rate applicable, which is the rate that exactly discounts
employee benefits are measured at the present value of
product’s technological feasibility has been established, estimated future cash receipts through the expected life
Category of assets No. of years the estimated future cash outflows expected to be made
in which case such expenditure is capitalised. The amount of the financial asset to that asset’s net carrying amount
Computer software 3-6 by the Group in respect of services provided by employees
capitalised comprises expenditure that can be directly on initial recognition.
Capitalised development 6 up to the reporting date.
attributed or allocated on a reasonable and consistent

226 Apollo Tyres Ltd Annual Report 2020-21 227

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

3.13 Government grants, subsidies and export incentives According to Appendix B of Ind AS 21 “Foreign currency 3.15 Employee share based payments adjusted for any lease payments made at or prior to the
 overnment grants and subsidies are recognised when
G transactions and advance consideration”, purchase or  tock appreciation rights (Phantom stock units) are
S commencement date of the lease plus any initial direct
there is reasonable assurance that the Group will comply sale transactions must be translated at the exchange granted to employees under the Cash-settled Employee costs less any lease incentives. They are subsequently
with the conditions attached to them and the grants / rate prevailing on the date the asset or liability is initially Share-based Payment Plan (Phantom Stock Plan). measured at cost less accumulated depreciation and
subsidy will be received. recognized. In practice, this is usually the date on which impairment losses.
 or cash-settled share-based payments, a liability is
F
the advance payment is made or received. In the case of
Government grants whose primary condition is that the recognised for the goods or services acquired, measured 
ROU assets are depreciated from the date of
multiple advances, the exchange rate must be determined
Group should purchase, construct or otherwise acquire initially at the fair value of the liability. At the end of commencement of the lease on a straight line basis over
for each payment and collection transaction. The
non-current assets are recognised as deferred revenue each reporting period until the liability is settled, and the shorter of the lease term and the useful life of the
interpretation is mandatory for financial years beginning
in the consolidated balance sheet and transferred to the at the date of settlement, the fair value of the liability is underlying asset.
on or after April 1, 2018. Its adoption did not have any
consolidated statement of profit and loss on a systematic remeasured, with any changes in fair value recognised in
significant impact on the Group’s consolidated financial  he lease liability is initially measured at amortized cost at
T
basis over the expected useful life of the related assets. consolidated statement of profit and loss.
statements. the present value of the future lease payments. For leases
Government grants related to the income are deferred under which the rate implicit in the lease is not readily
For the purposes of presenting consolidated financial 3.16 Borrowing costs
and recognized in the consolidated statement of profit determinable, the Company & subsidiary entities uses
statements, the assets and liabilities of the Group’s foreign  orrowing costs directly attributable to the acquisition,
B
and loss as an income in the period in which related its incremental borrowing rate based on the information
operations (including goodwill and fair value adjustments construction or production of qualifying assets, which are
obligations are met. available at the date of commencement of the lease
to identifiable assets acquired and liabilities assumed assets that necessarily take a substantial period of time
in determining the present value of lease payments.
 xport incentives under various schemes notified by
E through acquisition of a foreign operation) are translated to get ready for their intended use or sale, are added to
Lease liabilities are re measured with a corresponding
the Government have been recognised on the basis of into Indian Rupees using exchange rates prevailing at the cost of those assets, until such time as the assets are
adjustment to the related ROU asset if the Group changes
applicable regulations, and when reasonable assurance the end of each reporting period. Income and expense substantially ready for their intended use or sale.
its assessment as to whether it will exercise an extension
to receive such revenue is established. items are translated at the average exchange rates for
 ll other borrowing costs are recognised in consolidated
A or a termination option.
the period, unless exchange rates fluctuate significantly
Export incentives earned in the year of exports are netted statement of profit and loss in the period in which they are
during that period, in which case the exchange rates at the  ease liability and ROU assets have been separately
L
off from cost of raw material imported. incurred. Other finance costs includes interest on other
dates of the transactions are used. Exchange differences presented in the consolidated balance sheet and the
contractual obligations.
arising on translation, if any, are recognised in other payment of principal portion of lease liabilities has been
3.14 Foreign currency transaction and translations
comprehensive income and accumulated in equity. classified as financing cash flows. The weighted average
Foreign currency transactions are recorded at rates of 3.17 Leases
incremental borrowing rate applied to lease liabilities is
exchange prevailing on the date of transaction. Monetary  n the disposal of a foreign operation (i.e., a disposal
O The Group as a lessee
1% - 10% p.a.
assets and liabilities denominated in foreign currencies of the Group’s entire interest in a foreign operation, a T he Group’s lease asset classes primarily consist of
as at the balance sheet date are translated at the rate disposal involving loss of control over a subsidiary that leases for buildings, plant & machinery & vehicles. The
3.18 Earnings per share
of exchange prevailing at the year-end. Non-monetary includes a foreign operation, or a partial disposal of Group assesses whether a contract contains a lease, at
 asic earnings per share is computed by dividing the
B
items carried at fair value that are denominated in foreign an interest in a joint arrangement or an associate that inception of a contract. A contract is, or contains, a lease
consolidated profit / (loss) after tax (including the post
currencies are retranslated at the rates prevailing at the includes a foreign operation of which the retained interest if the contract conveys the right to control the use of
tax effect of extraordinary items, if any) by the weighted
date when the fair value was determined. Non-monetary becomes a financial asset), all of the exchange differences an identified asset for a period of time in exchange for
average number of equity shares outstanding during the
items that are measured in terms of historical cost in a accumulated in equity in respect of that operation are consideration. To assess whether a contract conveys the
year. Diluted earnings per share is computed by dividing
foreign currency are not retranslated. reclassified to consolidated statement of profit and loss. right to control the use of an identified asset, the Group
the profit / (loss) after tax (including the post tax effect
assesses whether: (1) the contract involves the use of an
Exchange differences on monetary items are recognised I n addition, in relation to a partial disposal of subsidiary of extraordinary items, if any) as adjusted for dividend,
identified asset, (2) the Group has substantially all of the
in consolidated statement of profit and loss in the period that includes a foreign operation that does not result interest and other charges to expense or income (net of
economic benefits from the use of the asset through the
in which they arise except for: in the group losing control over the subsidiary, the any attributable taxes) relating to the dilutive potential
period of the lease, and (3) the Group has the right to
proportionate share of accumulated exchange differences equity shares, by the weighted average number of equity
direct the use of the asset.
• exchange differences on foreign currency borrowings are re-attributed to the non-controlling interests and are shares considered for deriving basic earnings per share
relating to assets under construction for future not recognised in the consolidated statement of profit and At the date of commencement of the lease, the Group and the weighted average number of equity shares which
productive use, which are included in the cost of those loss. For all other partial disposals (i.e partial disposals recognizes a Right of use (ROU) asset and a corresponding could have been issued on the conversion of all dilutive
assets when they are regarded as an adjustment to of associates or joint arrangements that do not result lease liability for all lease arrangements under which it potential equity shares. Potential equity shares are
interest costs on those foreign currency borrowings; in the group losing significant influence or joint control), is a lessee, except for short-term leases and low value deemed to be dilutive only if their conversion to equity
the proportionate share of the accumulated exchange leases. For short-term leases and low value leases, the shares would decrease the net profit per share from
• exchange differences on transactions entered into in
differences is reclassified to consolidated statement of Group recognizes the lease payments as an expense on a continuing ordinary operations. Potential dilutive equity
order to hedge certain foreign currency risks; and
profit and loss. straight-line basis over the term of the lease. shares are deemed to be converted as at the beginning of
• exchange differences on monetary items receivable from the period, unless they have been issued at a later date.
 oodwill and fair value adjustments to the identifiable
G Certain lease arrangements include options to extend or
or payable to a foreign operation for which settlement The dilutive potential equity shares are adjusted for the
assets acquired and liabilities assumed through acquisition terminate the lease before the end of the lease term. ROU
is neither planned nor likely to occur (therefore forming proceeds receivable had the shares been actually issued
of a foreign operation are treated as assets and liabilities assets and lease liabilities include these options when it is
part of the net investment in the foreign operation), at fair value (i.e., average market value of the outstanding
of the foreign operation and translated at the rate of reasonably certain that they will be exercised.
which are recognised initially in other comprehensive shares). Dilutive potential equity shares are determined
exchange prevailing at the end of each reporting period.
income and reclassified from equity to consolidated  he ROU assets are initially recognized at cost, which
T independently for each period presented. The number of
Exchange differences arising are recognised in other
statement of profit and loss on repayment of the comprises the initial amount of the lease liability
comprehensive income.
monetary items.

228 Apollo Tyres Ltd Annual Report 2020-21 229

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

equity shares and potentially dilutive equity shares are 3.20 Provisions and contingencies All recognised financial assets are subsequently measured • on initial recognition it is part of a portfolio of identified
adjusted for share splits / reverse share splits and bonus A provision is recognised when the Group has a present in their entirety at either amortised cost or fair value, financial instruments that the Group manages together
shares, as appropriate. obligation (legal / constructive) as a result of past events depending on the classification of the financial assets. and has a recent actual pattern of short-term profit-
and it is probable that an outflow of resources will be taking; or
3.19 Impairment of tangible and intangible assets other required to settle the obligation, in respect of which a 3.22.1 Classification of financial asset
• it is a derivative that is not designated and effective as
than goodwill reliable estimate can be made. a. Loans and receivable
a hedging instrument or a financial guarantee.
At the end of each reporting period, the Group reviews the Financial assets that meet the following conditions are
The amount recognised as a provision is the best estimate
carrying amounts of its tangible and intangible assets or subsequently measured at amortised cost less impairment Dividends on these investments in equity instruments
of the consideration required to settle the present
cash generating units to determine whether there is any loss (except for investments that are designated as at fair are recognised in consolidated statement of profit and
obligation at the end of the reporting period, taking
indication that those assets have suffered an impairment value through profit or loss (FVTPL) on initial recognition): loss when the Group’s right to receive the dividends is
into account the risks and uncertainties surrounding
loss. If any such indication exists, the recoverable amount established, it is probable that the economic benefits
the obligation. When a provision is measured using the
of the asset is estimated in order to determine the extent • the asset is held within a business model whose objective associated with the dividend will flow to the entity, the
cash flows estimated to settle the present obligation, its
of the impairment loss (if any). When it is not possible is to hold assets in order to collect contractual cash dividend does not represent a recovery of part of cost
carrying amount is the present value of those cash flows
to estimate the recoverable amount of an individual flows; and of the investment and the amount of dividend can be
(when the effect of the time value of money is material).
asset, the Group estimates the recoverable amount of measured reliably.
• the contractual terms of the instrument give rise on
the cash-generating unit to which the asset belongs.  ontingent liability is disclosed for (i) Possible obligation
C
specified dates to cash flows that are solely payments
When a reasonable and consistent basis of allocation which will be confirmed only by future events not wholly d. Financial assets at fair value through profit or loss
of principal and interest on the principal amount
can be identified, corporate assets are also allocated to within the control of the Group or (ii) Present obligations (‘FVTPL’)
outstanding.
individual cash-generating units, or otherwise they are arising from past events where it is not probable that an Investments in equity instruments are classified as at
allocated to the smallest group of cash-generating units outflow of resources will be required to settle the obligation The effective interest method is a method of calculating FVTPL, unless the Group irrevocably elects on initial
for which a reasonable and consistent allocation basis can or a reliable estimate of the amount of the obligation the amortised cost of a debt instrument and of allocating recognition to present subsequent changes in fair value in
be identified. cannot be made. When some or all of the economic interest income over the relevant period. The effective other comprehensive income for equity instruments which
benefits required to settle a provision are expected to be interest rate is the rate that exactly discounts estimated are not held for trading.
I ntangible assets with indefinite useful lives and intangible
recovered from a third party, a receivable is recognised future cash receipts (including all fees and points paid or
assets not yet available for use are tested for impairment  ebt instrument that do not meet the amortised cost
D
as an asset if it is virtually certain that reimbursement received that form an integral part of the effective interest
at least annually, or whenever there is an indication that criteria or fair value through other comprehensive income
will be received and the amount of the receivable can be rate, transaction costs and other premiums or discounts)
the asset may be impaired. criteria (see above) are measured at FVTPL. In addition,
measured reliably. through the expected life of the debt instrument, or, where
debt instruments that meet the amortised cost criteria or
Recoverable amount is the higher of fair value less costs appropriate, a shorter period, to the net carrying amount
Provisions for the expected cost of sales related obligations the fair value through other comprehensive income criteria
of disposal and value in use. In assessing value in use, on initial recognition.
are recognised at the date of sale of the relevant products, but are designated as at FVTPL are measured at FVTPL.
the estimated future cash flows are discounted to their
at the management’s best estimate of the expenditure I ncome is recognised on an effective interest basis for debt
present value using a pre-tax discount rate that reflects  financial asset may be designated as at FVTPL upon
A
required to settle the group’s obligation. instruments other than those financial assets classified as
current market assessments of the time value of money initial recognition if such designation eliminates or
at FVTPL. Interest income is recognised in consolidated
and the risks specific to the asset for which the estimates significantly reduces a measurement or recognition
3.21 Financial instruments statement of profit and loss and is included in the ‘Other
of future cash flows have not been adjusted. inconsistency that would arise from measuring assets or
 inancial assets and financial liabilities are recognised
F Income’ line item.
liabilities or recognising the gains and losses on them on
I f the recoverable amount of an asset (or cash-generating when an entity becomes a party to the contractual
different bases.
unit) is estimated to be less than its carrying amount, the provisions of the instruments. b. Assets available for sale
carrying amount of the asset (or cash-generating unit) is Financial assets that meet the following conditions Financial assets at FVTPL are measured at fair value at
 inancial assets and financial liabilities are initially
F
reduced to its recoverable amount. An impairment loss are subsequently measured at fair value through other the end of each reporting period, with any gains or losses
measured at fair value. Transaction costs that are directly
is recognised immediately in consolidated statement of comprehensive income (FVTOCI) (except for investments arising on re-measurement recognised in consolidated
attributable to the acquisition or issue of financial assets
profit and loss, unless the relevant asset is carried at a that are designated as at FVTPL on initial recognition): statement of profit and loss. The net gain or loss recognised
and financial liabilities (other than financial assets and
revalued amount, in which case the impairment loss is in consolidated statement of profit and loss is included in
financial liabilities at fair value through profit or loss) are • the asset is held within a business model whose objective
treated as a revaluation decrease. the other income line item. Dividend on financial assets at
added to or deducted from the fair value of the financial is achieved both by collecting contractual cash flows
FVTPL is recognised when the group’s right to receive the
 hen an impairment loss subsequently reverses, the
W assets or financial liabilities, as appropriate, on initial and selling financial assets; and
dividends is established, it is probable that the economic
carrying amount of the asset (or a cash-generating unit) recognition. Transaction costs directly attributable to the
• the contractual terms of the instrument give rise on benefits associated with the dividend will flow to the
is increased to the revised estimate of its recoverable acquisition of financial assets or financial liabilities at fair
specified dates to cash flows that are solely payments entity, the dividend does not represent a recovery of part
amount, but so that the increased carrying amount does value through profit or loss are recognised immediately in
of principal and interest on the principal amount of cost of the investment and the amount of dividend can
not exceed the carrying amount that would have been consolidated statement of profit and loss.
outstanding. be measured reliably.
determined had no impairment loss been recognised
for the asset (or cash-generating unit) in prior years. A 3.22 Financial assets All other financial assets are subsequently measured at fair
3.22.2 Impairment of financial assets
reversal of an impairment loss is recognised immediately All regular way purchases or sales of financial assets value.
The Group applies the expected credit loss model for
in consolidated statement of profit and loss, unless the are recognised and derecognised on a trade date basis.
c. Assets held for trading recognising impairment loss on financial assets measured
relevant asset is carried at a revalued amount, in which Regular way purchases or sales are purchases or sales of
A financial asset is held for trading if: at amortised cost, debt instruments at FVTOCI, lease
case the reversal of the impairment loss is treated as a financial assets that require delivery of assets within the
• it has been acquired principally for the purpose of selling receivables, trade receivables, other contractual rights
revaluation increase. time frame established by regulation or convention in the
it in the near term; or to receive cash or other financial assets, and financial
marketplace.
guarantees not designated as at FVTPL.

230 Apollo Tyres Ltd Annual Report 2020-21 231

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Expected credit losses are the weighted average of 3.22.3 De-recognition of financial assets 3.23 Financial liabilities and equity instruments Instruments permits the entire combined contract to
credit losses with the respective risks of default occurring The Group derecognises a financial asset when the 3.23.1 Classification as debt or equity be designated as at FVTPL in accordance with Ind AS
as the weights. Credit loss is the difference between contractual rights to the cash flows from the asset expire, D ebt and equity instruments issued by the Group are 109 Financial Instruments.
all contractual cash flows that are due to the Group in or when it transfers the financial asset and substantially classified as either financial liabilities or as equity in
Financial liabilities at FVTPL are stated at fair value, with
accordance with the contract and all the cash flows that all the risks and rewards of ownership of the asset to accordance with the substance of the contractual
any gains or losses arising on remeasurement recognised
the group expects to receive (i.e., all cash shortfalls), another party. If the Group neither transfers nor retains arrangements and the definitions of a financial liability
in consolidated statement of profit and loss.
discounted at the original effective interest rate (or substantially all the risks and rewards of ownership and and an equity instrument.
credit-adjusted effective interest rate for purchased or continues to control the transferred asset, the Group
3.23.3.2 Financial liabilities subsequently measured at
originated credit-impaired financial assets). The group recognises its retained interest in the asset and an 3.23.2 Equity instruments
amortised cost
estimates cash flows by considering all contractual terms associated liability for amounts it may have to pay. If An equity instrument is any contract that evidences a
Financial liabilities that are not held-for-trading and are
of the financial instrument (for example, prepayment, the Group retains substantially all the risks and rewards residual interest in the assets of an entity after deducting
not designated as at FVTPL are measured at amortised
extension, call and similar options) through the expected of ownership of a transferred financial asset, the Group all of its liabilities. Equity instruments issued by the Group
cost at the end of subsequent accounting periods.
life of that financial instruments. continues to recognise the financial asset and also are recognised at the proceeds received, net of direct issue
The carrying amounts of financial liabilities that are
recognises a collateralised borrowing for the proceeds costs.
 he Group measures the loss allowance for a financial
T subsequently measured at amortised cost are determined
received.
instrument at an amount equal to the lifetime expected based on the effective interest method. Interest expense
3.23.3 Financial liabilities
credit losses if the credit risk on that financial instrument  n de-recognition of a financial asset in its entirety, the
O that is not capitalised as part of costs of an asset is
A ll financial liabilities are subsequently measured at
has increased significantly since initial recognition. If the difference between the asset’s carrying amount and the included in the finance costs line item.
amortised cost using the effective interest method
credit risk on a financial instrument has not increased sum of the consideration received and receivable and
or at FVTPL. However, financial liabilities that arise The effective interest method is a method of calculating
significantly since initial recognition, the Group measures the cumulative gain or loss that had been recognised in
when a transfer of a financial asset does not qualify the amortised cost of a financial liability and of allocating
the loss allowance for that financial instrument at an other comprehensive income and accumulated in equity
for derecognition or when the continuing involvement interest expense over the relevant period. The effective
amount equal to 12-month expected credit losses.12- is recognised in consolidated statement of profit and loss
approach applies, financial guarantee contracts issued by interest rate is the rate that exactly discounts estimated
month expected credit losses are portion of the life-time if such gain or loss would have otherwise been recognised
the Group, are measured in accordance with the specific future cash payments (including all fees and points paid
expected credit losses and represent the lifetime cash in consolidated statement of profit and loss on disposal of
accounting policies set out below: or received that form an integral part of the effective
shortfalls that will result if default occurs within the 12 that financial asset.
interest rate, transaction costs and other premiums
months after the reporting date and thus, are not cash
On de-recognition of a financial asset other than in 3.23.3.1 Financial liabilities at FVTPL or discounts) through the expected life of the financial
shortfalls that are predicted over the next 12 months.
its entirety (e.g. when the Group retains an option to Financial liabilities are classified as at FVTPL when the liability, or (where appropriate) a shorter period, to the
If the group measured loss allowance for a financial repurchase part of a transferred asset), the Group allocates financial liability is either held for trading or it is designated net carrying amount on initial recognition.
instrument at lifetime expected credit loss model in the the previous carrying amount of the financial asset as at FVTPL.
previous period, but determines at the end of a reporting between the part it continues to recognise under continuing 3.23.3.3 Financial guarantee contracts
A financial liability is classified as held for trading if:
period that the credit risk has not increased significantly involvement, and the part it no longer recognises on the A financial guarantee contract is a contract that requires
since initial recognition due to improvement in credit basis of the relative fair values of those parts on the date of • it has been incurred principally for the purpose of the issuer to make specified payments to reimburse the
quality as compared to the previous period, the Group the transfer. The difference between the carrying amount repurchasing it in the near term; or holder for a loss it incurs because a specified debtor fails
again measures the loss allowance based on 12- month allocated to the part that is no longer recognised and the to make payments when due in accordance with the terms
• on initial recognition it is part of a portfolio of identified
expected credit losses. sum of the consideration received for the part no longer of a debt instrument.
financial instruments that the Group manages together
recognised and any cumulative gain or loss allocated to it
 hen making the assessment of whether there has been
W and has a recent actual pattern of short-term profit-  inancial guarantee contracts issued by the Group are
F
that had been recognised in other comprehensive income
a significant increase in credit risk since initial recognition, taking; or initially measured at their fair values and, if not designated
is recognised in consolidated statement of profit and loss
the Group uses the change in the risk of a default occurring as at FVTPL, are subsequently measured at:
if such gain or loss would have otherwise been recognised • it is a derivative that is not designated and effective as
over the expected life of the financial instrument. To make
in consolidated statement of profit and loss on disposal a hedging instrument. • the amount of loss allowance determined in accordance
that assessment, the Group compares the risk of a default
of that financial asset. A cumulative gain or loss that had with impairment requirements of Ind AS 109 Financial
occurring on the financial instrument as at the reporting
been recognised in other comprehensive income is allocated  financial liability other than a financial liability held
A Instruments; and
date with the risk of a default occurring on the financial
between the part that continues to be recognised and the for trading may be designated as at FVTPL upon initial
instrument as at the date of initial recognition and • the amount initially recognised less, where appropriate,
part that is no longer recognised on the basis of the relative recognition if:
considers reasonable and supportable information, that is cumulative amortisation recognised in accordance with
fair values of those parts.
available without undue cost or effort, that is indicative of • such designation eliminates or significantly reduces a the revenue recognition policies of Ind AS 115 Revenue
significant increases in credit risk since initial recognition. measurement or recognition inconsistency that would from Contracts with Customers.
3.22.4 Foreign exchange gains and losses
otherwise arise; or
 or trade receivables or any contractual right to
F The fair value of financial assets denominated in a foreign For financial liabilities that are denominated in a foreign
receive cash or another financial asset that result from currency is determined in that foreign currency and • the financial liability forms part of a group of financial currency and are measured at amortised cost at the end
transactions that are within the scope of Ind AS 115 translated at the spot rate at the end of each reporting assets or financial liabilities or both, which is managed of each reporting period, the foreign exchange gains and
- Revenue from contracts with customers, the Group period. and its performance is evaluated on a fair value basis, losses are determined based on the amortised cost of the
always measures the loss allowance at an amount equal to in accordance with the Group’s documented risk instruments and are recognised in the Other income.
For foreign currency denominated financial assets
lifetime expected credit losses. Credit impaired balances management or investment strategy, and information
measured at amortised cost and FVTPL, the exchange  he fair value of financial liabilities denominated in a
T
are disclosed under provision for doubtful debts. about the grouping is provided internally on that basis; or
differences are recognised in consolidated statement of foreign currency is determined in that foreign currency
profit and loss except for those which are designated as • it forms part of a contract containing one or more and translated at the spot rate at the end of the reporting
hedging instruments in hedging relationship. embedded derivatives, and Ind AS 109 Financial period. For financial liabilities that are measured as at

232 Apollo Tyres Ltd Annual Report 2020-21 233

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

FVTPL, the foreign exchange component forms part of the of profit and loss in the line item relating to the hedged and forward elements of forward contracts in hedging as defined above, net of outstanding cash credits as they
fair value gains or losses and is recognised in consolidated item. Hedge accounting is discontinued when the hedging relationship. The time value of options at the date of are considered an integral part of the Groups’s cash
statement of profit and loss. instrument expires or is sold, terminated, or exercised, or designation of the options in the hedging relationships management. The cash flow statement is prepared using
when it no longer qualifies for hedge accounting. The fair is amortised on a systematic and rational basis over the indirect method.
3.23.3.4 Derecognition of financial liabilities value adjustment to the carrying amount of the hedged period during which the options’ intrinsic value could affect
T he Group derecognises financial liabilities when, and item arising from the hedged risk is amortised to profit or profit or loss. This is done as a reclassification adjustment 3.28 Rounding off amounts
only when, the Group’s obligations are discharged, loss from that date. and hence affects other comprehensive income. All amounts disclosed in the consolidated financial
cancelled or they expire. The difference between the statements and notes have been rounded off to the
In cases where only the spot element of the forward
carrying amount of the financial liability derecognised Cash flow hedges nearest millions as per the requirements of Schedule III of
contracts is designated in a hedging relationship and the
and the consideration paid and payable is recognised in The effective portion of changes in the fair value of the Act unless otherwise stated.
forward element of the forward contract is not designated,
consolidated statement of profit and loss. derivatives that are designated and qualify as cash flow
the Group makes the choice for each designation whether
hedges is recognised in other comprehensive income and 3.29 Critical accounting judgements and key sources of
to recognise the changes in forward element of fair value
3.24 Derivative financial instruments accumulated under the heading of cash flow hedging estimation uncertainty
of the forward contracts in profit or loss or to account for
T he Group enters into a variety of derivative financial reserve. The gain or loss relating to the ineffective portion  he preparation of financial statements in conformity
T
this element similar to the time value of an option.
instruments to manage its exposure to interest rate and is recognised immediately in consolidated statement of with Ind AS requires management to make certain
foreign exchange rate risks, including foreign exchange profit and loss, and is included in the ‘Other income’/’Other  edge accounting is discontinued when the hedging
H judgments and estimates that may effect the application
forward contracts, options and cross currency swaps. expense’ line item. Amounts previously recognised in other instrument expires or is sold, terminated, or exercised, of accounting policies, reported amounts and related
comprehensive income and accumulated in equity relating or when it no longer qualifies for hedge accounting. Any disclosures.
Derivatives are initially recognised at fair value at the
to (effective portion as described above) are reclassified gain or loss recognised in other comprehensive income and
date the derivative contracts are entered into and are  hese judgments and estimates may have an impact on
T
to consolidated statement of profit and loss in the periods accumulated in equity at that time remains in equity and
subsequently remeasured to their fair value at the end the assets and liabilities, disclosure of contingent liabilities
when the hedged item affects profit or loss, in the same is recognised when the forecast transaction is ultimately
of each reporting period. The resulting gain or loss is at the date of the financial statements and income and
line as the recognised hedged item. However, when the recognised in consolidated statement of profit and loss.
recognised in consolidated statement of profit and loss expense items for the period under review. Actual results
hedged forecast transaction results in the recognition When a forecast transaction is no longer expected to
immediately unless the derivative is designated and may differ from these judgments and estimates.
of a non-financial asset or a non-financial liability, such occur, the gain or loss accumulated in equity is recognised
effective as a hedging instrument, in which event the
gains and losses are transferred from equity (but not as immediately in consolidated statement of profit and loss. All assumptions, expectations and forecasts that are used
timing of the recognition in consolidated statement of
a reclassification adjustment) and included in the initial as a basis for judgments and estimates in the consolidated
profit and loss depends on the nature of the hedging
measurement of the cost of the non -financial asset or 3.26 Goodwill financial statements represent as accurately an outlook
relationship and the nature of the hedged item.
non-financial liability.  oodwill arising on an acquisition of a business is carried
G as possible for the group. These judgments and estimates
at cost as established at the date of acquisition of the only represent interpretation of the Group as of the dates
3.25 Hedge accounting In cases where the designated hedging instruments are
business less accumulated impairment losses, if any. For on which they were prepared.
The Group designates certain hedging instruments, options and forward contracts, the Group has an option, for
the purposes of impairment testing, goodwill is allocated
which include derivatives, embedded derivatives and each designation, to designate on an instrument only the I mportant judgments and estimates relate largely to
to each of the Group’s cash –generating units (or groups
non-derivatives in respect of foreign currency risk, as changes in intrinsic value of the options and spot element of provisions, pensions, tangible and intangible assets (lives,
of cash-generating units). A cash-generating unit to which
either fair value hedges, cash flow hedges, or hedges of forward contracts respectively as hedges. In such cases, the residual values and impairment), deferred tax assets and
goodwill has been allocated is tested for impairment
net investments in foreign operations. Hedges of foreign time value of the options is accounted based on the type of liabilities and valuation of financial instruments.
annually, or more frequently when there is an indication
exchange risk on firm commitments are accounted for as hedged item which those options hedge.
that the unit may be impaired. If the recoverable amount
cash flow hedges. 3.30 Estimation of uncertainties relating to the global
I n case of transaction related hedged item in the above of the cash-generating unit is less than its carrying
health pandemic from COVID-19
At the inception of the hedge relationship, the entity cases, the change in time value of the options is recognised amount, the impairment loss is allocated first to reduce
The Group has considered the possible effects that may
documents the relationship between the hedging in other comprehensive income to the extent it relates to the the carrying amount of any goodwill allocated to the unit
result from the pandemic relating to COVID-19 on the
instrument and the hedged item, along with its risk hedged item and accumulated in a separate component of and then to the other assets of the unit pro rata based
carrying amounts of property, plant and equipment,
management objectives and its strategy for undertaking equity i.e., Reserve for time value of options and forward on the carrying amount of each asset in the unit. Any
investments, inventories, receivables and other current
various hedge transactions. Furthermore, at the inception elements of forward contracts in hedging relationship. impairment loss for goodwill is recognised directly in
assets. In developing the assumptions relating to the
of the hedge and on an ongoing basis, the Group This separate component is removed and directly included consolidated statement of profit and loss. An impairment
possible future uncertainties in the global economic
documents whether the hedging instrument is highly in the initial cost or other carrying amount of the asset or loss recognised for goodwill is not reversed in subsequent
conditions because of this pandemic, the Group, as at
effective in offsetting changes in fair values or cash flows the liability (i.e., not as a reclassification adjustment thus periods. On disposal of the relevant cash-generating unit,
the date of approval of these financial statements has
of the hedged item attributable to the hedged risk. not affecting other comprehensive income) if the hedged the attributable amount of goodwill is included in the
used internal and external sources on the expected future
item subsequently results in recognition of a non-financial determination of the profit or loss on disposal.
performance of the Group. The Group has performed
Fair value hedges asset or a non-financial liability. In other cases, the amount
sensitivity analysis on the assumptions used and based
Changes in fair value of the designated portion of accumulated is reclassified to consolidated statement of 3.27 Cash and cash equivalents
on current indicators of future economic conditions, the
derivatives that qualify as fair value hedges are recognised profit and loss as a reclassification adjustment in the same Cash comprises cash on hand and demand deposits with
Group expects the carrying amount of these assets will be
in profit or loss immediately, together with any changes period in which the hedged expected future cash flows banks. Cash equivalents are short-term balances (with
recovered and sufficient liquidity is available to fund the
in the fair value of the hedged asset or liability that are affect profit or loss. an original maturity of three months or less from the date
business operations for at least another 12 months. Given
attributable to the hedged risk. The change in the fair value of acquisition), highly liquid investments that are readily
In case of time-period related hedged item in the above the uncertainty of the pandemic, the final impact on the
of the designated portion of hedging instrument and the convertible into known amounts of cash and which are
cases, the change in time value of the options is recognised Group’s assets in future may differ from that estimated as
change in fair value of the hedged item attributable to the subject to insignificant risk of changes in value.
in other comprehensive income to the extent it relates at the date of approval of these financial statements and
hedged risk are recognised in the consolidated statement
to the hedged item and accumulated in a separate For the purpose of the statement of cash flows, cash and the Group will continue to closely monitor any material
component of equity i.e., Reserve for time value of options cash equivalents consist of cash and short-term balances, changes to future economic conditions.

234 Apollo Tyres Ltd Annual Report 2020-21 235

 B1 PROPERTY, PLANT AND EQUIPMENT AND OTHER INTANGIBLE ASSETS AS ON MARCH 31, 2021
` Million

236
GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK
Effect of Eliminated Effect of
Description of assets Depreciation / Impairment
As on Disposals/ foreign As on As on on disposal foreign As on As on As on
Additions (c) amortisation (refer note
April 1, 2020 Adjustments currency March 31, 2021 April 1, 2020 of assets/ currency March 31, 2021 March 31, 2021 March 31, 2020
expense C29)
translation (e) Adjustments translation (e)
A. Notes
A. Property, plant and
equipment - owned unless
otherwise stated
Land:
Freehold land 2,642.40 - - 105.45 2,747.85 - - - - - - 2,747.85 2,642.40
Leasehold land * 196.09 0.06 - - 196.15 24.85 2.19 - - - 27.04 169.11 171.24
(a)
Buildings 34,047.65 2,720.88 76.55 369.04 37,061.02 7,175.28 992.82 12.31 - 109.82 8,265.61 28,795.41 26,872.37
(b) (d) (d)
Plant and equipment ** 164,271.44 16,796.16 628.88 1,894.63 182,333.35 66,151.42 7,486.11 411.86 1,170.35 1,127.86 75,523.88 106,809.47 98,120.02
(b)
Electrical installations 6,126.33 584.25 0.01 56.28 6,766.85 1,816.19 388.24 0.01 - 0.13 2,204.55 4,562.30 4,310.14
(b)
Furniture and fixtures 3,693.44 96.30 172.47 48.72 3,665.99 2,357.20 298.37 41.99 - 27.90 2,641.48 1,024.51 1,336.24
(b)
forming Part of the Consolidated Financial Statements

Vehicles 1,261.20 120.58 45.57 11.61 1,347.82 638.62 134.54 26.14 - 10.05 757.07 590.75 622.58
(b)
Office equipment 1,729.73 79.80 4.44 28.63 1,833.72 1,071.02 204.41 4.44 - 20.14 1,291.13 542.59 658.71
(b)
Factsheet
Corporate

Total tangible assets 213,968.28 20,398.03 927.92 2,514.36 235,952.75 79,234.58 9,506.68 496.75 1,170.35 1,295.90 90,710.76 145,241.99 134,733.70
B. Other intangible assets
Computer software 4,255.44 804.84 8.87 123.95 5,175.36 3,448.86 434.13 2.02 - 116.35 3,997.32 1,178.04 806.58
(b)
Trademarks 2,233.89 0.40 - 70.56 2,304.85 46.62 0.36 - - 0.95 47.93 2,256.92 2,187.27
Capitalised development 7,799.65 489.39 - 248.23 8,537.27 3,747.03 824.14 - - 113.88 4,685.05 3,852.22 4,052.62
(b)
Other intangibles 359.62 - - 11.65 371.27 13.31 - - - 0.41 13.72 357.55 346.31
From our
Leadership

Total other intangible 14,648.60 1,294.63 8.87 454.39 16,388.75 7,255.82 1,258.63 2.02 - 231.59 8,744.02 7,644.73 7,392.78
assets
Total (A + B) 228,616.88 21,692.66 936.79 2,968.75 252,341.50 86,490.40 10,765.31 498.77 1,170.35 1,527.49 99,454.78 152,886.72 142,126.48
Apollo Tyres
Value Creation at

Apollo Tyres Ltd

PROPERTY, PLANT AND EQUIPMENT AND OTHER INTANGIBLE ASSETS AS ON MARCH 31, 2020
` Million
GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK
Effect of Eliminated Effect of
Description of assets As on Depreciation / As on As on As on
As on Disposals/ foreign As on on disposal foreign
Additions (c) March 31, amortisation Impairment March 31, March 31, March 31,
April 1, 2019 Adjustments currency April 1, 2019 of assets/ currency
Our ESG

2020 expense 2020 2020 2019

translation (e) Adjustments translation (e)
Performance

A. Property, plant and

equipment - owned

Annual Report 2020-21

unless otherwise stated
Land:
Freehold land 2,574.73 6.64 30.50 91.53 2,642.40 - - - - - - 2,642.40 2,574.73
Leasehold land * 196.09 - - - 196.09 22.66 2.19 - - - 24.85 171.24 173.43
(a)
Buildings 27,105.68 6,932.77 25.54 34.74 34,047.65 6,158.30 880.44 8.67 - 145.21 7,175.28 26,872.37 20,947.38
(b) (d) (d)
Plant and equipment ** 137,469.85 25,131.11 534.48 2,204.96 164,271.44 58,060.79 6,195.16 339.90 - 2,235.37 66,151.42 98,120.02 79,409.06
Management

(b)
Electrical installations 4,771.83 1,419.31 7.11 (57.70) 6,126.33 1,492.92 337.83 6.85 - (7.71) 1,816.19 4,310.14 3,278.91
Discussion & Analysis

(b)
Furniture and fixtures 3,353.27 284.17 27.26 83.26 3,693.44 1,983.20 342.76 15.98 - 47.22 2,357.20 1,336.24 1,370.07
(b)
Vehicles 1,152.09 296.54 212.42 24.99 1,261.20 647.10 127.13 157.19 - 21.58 638.62 622.58 504.99
(b)
Office equipment 1,377.12 299.86 4.08 56.83 1,729.73 796.83 235.41 3.74 - 42.52 1,071.02 658.71 580.29
(b)
Total tangible assets 178,000.66 34,370.40 841.39 2,438.61 213,968.28 69,161.80 8,120.92 532.33 - 2,484.19 79,234.58 134,733.70 108,838.86
Reports
Statutory

B. Other intangible assets

Computer software 3,931.86 156.55 - 167.03 4,255.44 2,882.24 415.79 - - 150.83 3,448.86 806.58 1,049.62
(b)
Trademarks 2,083.03 0.55 - 150.31 2,233.89 44.41 0.32 - - 1.89 46.62 2,187.27 2,038.62
Capitalised development 6,330.10 967.94 - 501.61 7,799.65 3,033.66 472.50 - - 240.87 3,747.03 4,052.62 3,296.44
(b)
Other intangibles 335.83 - - 23.79 359.62 12.44 - - - 0.87 13.31 346.31 323.39
Total other intangible assets 12,680.82 1,125.04 - 842.74 14,648.60 5,972.75 888.61 - - 394.46 7,255.82 7,392.78 6,708.07
Total (A + B) 190,681.48 35,495.44 841.39 3,281.35 228,616.88 75,134.55 9,009.53 532.33 - 2,878.65 86,490.40 142,126.48 115,546.93

` Million
Financial
Statements

Year ended Year ended

Particulars
March 31, 2021 March 31, 2020
Property, plant and equipment 9,506.68 8,120.92
Right of use assets (refer note C7) 2,384.21 2,371.65
Other intangible assets 1,258.63 888.61
Total 13,149.52 11,381.18
* Leasehold land is net of ` 5.39 Million (` 5.39 Million) subleased to Classic Industries and Exports Limited, a Company in which directors are interested since the year ended 2009-10.
** Plant and equipment include jointly owned assets with gross book value of ` 311.28 Million (` 311.28 Million) and net book value of ` 213.09 Million (` 225.62 Million) which represents 50% ownership in the asset.
(a) Represents proportionate lease premium ` 2.19 Million (` 2.15 Million) amortised.
(b) Buildings include ` 0.24 Million (` 28.03 Million), plant and equipment include ` 292.12 Million (` 339.78 Million), electrical installations include ` 0.05 Million (` 4.55 Million), furniture and fixture include Nil
(` 1.49 Million), vehicles include ` 93.35 Million (` 14.53 Million), office equipment include Nil (` 0.01 Million), computer software include ` 18.13 Million (` 11.78 Million) and capitalised development include
` 489.39 Million (` 967.94 Million) relating to research and development (refer note C14).
(c) Includes directly attributable expenses capitalised to the extent of ` 520.01 Million (` 1,341.58 Million) including ` 26.89 Million (` 767.24 Million) capitalised from capital work in progress (CWIP) of previous
year and borrowing cost capitalised to the extent of ` 1,057.19 Million (` 1,633.54 Million) including ` 207.27 Million (` 386.52 Million) capitalised from CWIP of previous year.
(d) Buildings include buildings constructed on leasehold land with gross book value of ` 13,311.18 Million (` 12,717.47 Million) and net book value of ` 9,628.78 Million (` 9,480.86 Million).
(e) Represents exchange rate adjustment arising on consolidation of foreign subsidiaries due to difference in opening, average and closing conversion rates.
(f) Carrying amount of tangible assets are pledged as security for liabilities (refer note B14(a)).
(g) Capital work-in-progress includes land of ` 297.70 Million (` 248.00 Million) acquired by the Company and is in the process of getting the title deeds transferred to its name.
237
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

FINANCIAL ASSETS (NON-CURRENT) NON-FINANCIAL ASSETS (NON-CURRENT)

B2 INVESTMENT IN ASSOCIATE / JOINT VENTURE B5 OTHER NON-CURRENT ASSETS

` Million ` Million
As on As on As on As on
Particulars Particulars
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Unquoted investments ** (Unsecured, considered good unless otherwise stated)
(a) Investment in associate: Capital advances 2,085.96 3,013.42
3,334 (3,334) equity shares of ` 10 each in KT Telematic Solutions Private Limited - fully paid up * 46.44 46.17 Capital advances to related parties (refer note C21) 152.44 666.12
(b) Investment in joint venture: Statutory balances recoverable 2.58 2.58
9,550 (9,550) units in Pan Aridus LLC, fully impaired - - Pension asset (refer note C11) 24.90 15.05
46.44 46.17 Advance tax (net) 21.53 13.51
* Includes Company’s cumulative share in profit of ` 1.43 million (` 1.16 million) Others 27.25 -
** Aggregate amount of unquoted investment at cost 45.01 45.01 2,314.66 3,710.68

CURRENT ASSETS
B3 OTHER INVESTMENTS
` Million B6 INVENTORIES
As on As on ` Million
Particulars
March 31, 2021 March 31, 2020
As on As on
Particulars
(At fair value through profit and loss) March 31, 2021 March 31, 2020
Other companies: (valued at lower of cost and net realizable value)
A Quoted Investments * (i) Raw materials
Investment in equity instruments: - In hand 8,915.61 6,508.01
16,394 (16,394) equity shares of `10 each in Bharat Gears Limited - fully paid up 1.20 0.42 - In transit 3,603.97 2,119.18
1.20 0.42 12,519.58 8,627.19
(ii) Work-in-progress * 2,168.45 1,654.13
B Unquoted investments **
(iii) Finished goods
Investment in equity instruments / preferred stock:
- In hand 10,773.37 14,236.55
312,000 (312,000) equity shares of ` 10 each in Green Infra Wind Power Projects Limited - 3.12 3.12
fully paid up - In transit 999.04 382.32
11,772.41 14,618.87
2,256,000 (2,256,000) equity shares of ` 30 each in Suryadev Alloys and Power Private 67.68 67.68
Limited - fully paid up (iv) Stock-in-trade
- In hand 3,728.27 4,455.32
284,000 (220,300) equity shares of ` 11.50 each in OPG Power Generation Private Limited - 3.27 2.53
- In transit 801.16 525.79
fully paid up
4,529.43 4,981.11
Nil (5,000) equity shares of ` 100 each in Apollo Tyres Employees' Multipurpose Co-operative - 0.50
(v) Stores and spares 2,195.47 2,187.86
Society Limited - fully paid up
33,185.34 32,069.16
49,358 (49,358) Series C preferred stock of USD 0.0001 each in Click Diagnostics, Inc # 73.75 73.75
147.82 147.58 * Work-in-progress consists of only automotive tyres.

Investments carried at fair value through profit and loss (A+B) 149.02 148.00
* Aggregate amount of quoted investments at cost 0.36 0.36 FINANCIAL ASSETS (CURRENT)
Aggregate amount of quoted investments at market value 1.20 0.42 B7 INVESTMENTS
** Aggregate amount of unquoted investments at cost 147.82 147.58
` Million
# Cost of unquoted preferred stock has been considered as an appropriate estimate of fair value As on As on
Particulars
March 31, 2021 March 31, 2020
At fair value through profit and loss:
B4 OTHER FINANCIAL ASSETS
Quoted investments *
` Million
As on As on
Investment in mutual funds 900.68 -
Particulars
March 31, 2021 March 31, 2020 900.68 -
(Unsecured, considered good unless otherwise stated)
Employee advances - salary loan 27.51 41.70 Amount in Amount in
* Mutual Funds Number of Units Number of Units
Security deposits 300.65 289.17 (` Million) (` Million)
Security deposits to related parties (refer note C21) 278.97 253.33 Aditya Birla Sun Life Overnight Fund- Growth- Direct plan 359,616.37 400.23 - -
Security deposits with statutory authorities 394.12 346.87 Axis Overnight Fund- Direct growth 460,008.44 500.45 - -
Derivative assets measured at fair value (refer note C12) 975.61 1,500.33 819,624.81 900.68 - -
Investment promotion subsidy receivable (refer note C10) 1,811.72 - Aggregate amount of quoted investments at cost 900.00 -
3,788.58 2,431.40 Aggregate amount of quoted investments at market value 900.68 -

238 Apollo Tyres Ltd Annual Report 2020-21 239

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

B8 TRADE RECEIVABLES NON-FINANCIAL ASSETS (CURRENT)

` Million
B12 OTHER CURRENT ASSETS
As on As on
Particulars
March 31, 2021 March 31, 2020 ` Million
(Unsecured, considered good unless otherwise stated) As on As on
Particulars
March 31, 2021 March 31, 2020
Considered good 13,808.18 9,398.76
(Unsecured, considered good unless otherwise stated)
Considered doubtful 867.34 509.40
a. Advances given to related parties (refer note C21) 278.57 158.85
14,675.52 9,908.16
b. Trade advances: considered good 501.02 515.21
Provision for loss allowance (refer note C5) (867.34) (509.40)
Doubtful advances 20.56 20.56
13,808.18 9,398.76
Provision for doubtful advances (20.56) (20.56)
501.02 515.21
B9 CASH AND CASH EQUIVALENTS c. Employee advances 54.68 52.00
` Million d. Export obligations - advance licence benefit 304.73 252.06
As on As on
Particulars
March 31, 2021 March 31, 2020
e. Export incentives recoverable 109.93 455.59
(i) Balances with banks: f. Balance with statutory authorities 2,124.71 2,115.26
Current accounts 8,355.74 6,491.64 g. Gratuity (refer note C11) - 199.27
Other deposit accounts h. Prepaid expenses 917.48 1,019.61
- original maturity of 3 months or less 500.99 600.00 4,291.12 4,767.85
(ii) Cheques on hand / remittances in transit 851.13 286.06
(iii) Cash on hand 5.63 8.71 B13 SHARE CAPITAL
9,713.49 7,386.41 ` Million
As on As on
Particulars
March 31, 2021 March 31, 2020
B10 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS
(a) Authorised
` Million
As on As on 750,000,000 Nos. (750,000,000 Nos.) equity shares of ` 1 each 750.00 750.00
Particulars
March 31, 2021 March 31, 2020
Unpaid dividend accounts* 94.37 109.57 150,000,000 Nos. (150,000,000 Nos.) cumulative redeemable preference shares of 15,000.00 15,000.00
Deposits with maturity exceeding 3 months but less than 12 months 11,650.01 0.01 `100 each
11,744.38 109.58 15,750.00 15,750.00
* These balances are not available for use by the Company and corresponding balance is disclosed as unclaimed dividend in note B20. (b) Issued, subscribed, called and fully paid up
Equity shares of ` 1 each:
B11 OTHER FINANCIAL ASSETS 635,100,946 Nos. (572,049,980 Nos.) equity shares 635.10 572.05
` Million 635.10 572.05
As on As on
Particulars
March 31, 2021 March 31, 2020
(c) Reconciliation of the number of equity shares and amount outstanding at the beginning and at the end of the year
(Unsecured, considered good unless otherwise stated)
Employee advances 78.12 57.48 As on March 31, 2021 As on March 31, 2020
Derivative assets measured at fair value (refer note C12) 40.55 56.53 Particulars Amount Amount
Number of shares Number of shares
(` Million) (` Million)
Security deposits 249.40 245.00
Opening balance 572,049,980 572.05 572,049,980 572.05
Interest accrued on deposits 153.74 -
Add: Conversion of compulsory convertible preference 63,050,966 63.05 - -
Investment promotion subsidy receivable 2,640.56 647.79
shares into equity shares (refer note C28)
Others 80.07 76.22
Closing balance 635,100,946 635.10 572,049,980 572.05
3,242.44 1,083.02

(d) Details of shareholders holding more than 5% of the paid up equity share capital of the Company with voting rights *

As on March 31, 2021 As on March 31, 2020

Name of the shareholder
Number of shares %age Number of shares %age
Sunrays Properties and Investment Company Private 128,393,784 20.22% 36,307,648 6.35%
Limited
Emerald Sage Investment Ltd. 63,050,966 9.93% - -
White IRIS Investment Ltd. 51,054,445 8.04% 51,054,445 8.92%
HDFC Trustee Company Ltd. - A/C its various Fund 42,931,147 6.76% 41,273,025 7.21%
Osiatic Consultants & Investments Pvt.Ltd. 39,041,880 6.15% - -
Apollo Finance Limited 37,528,872 5.91% 39,778,872 6.95%
Neeraj Consultants Private Limited - - 73,827,161 12.91%

* As per the records of the Company including its register of member.

240 Apollo Tyres Ltd Annual Report 2020-21 241

 (i)
(ii)
(g) O

242
Particulars

Secured *

Term loans
Debentures

From banks:
At amortised cost

Euro term loans

B14 BORROWINGS

Rupee term loans

held by the shareholders.

Deferred payment credit I

NON - CURRENT LIABILITIES

(iii) Deferred payment liabilities:

External commercial borrowings (ECB)
Foreign currency non-resident term loans
FINANCIAL LIABILITIES (NON-CURRENT)
shares are entitled to one vote per share.
Factsheet
Corporate

(e) The rights, preferences and restrictions attached to equity shares of the Company
From our
Leadership

* For details regarding repayment terms, interest rate and nature of security on non-current borrowings (refer note B14(a)).
48,081.83
31.17
11,477.52
9,528.57
462.72
6,920.67
19,661.18
March 31, 2021
As on
Apollo Tyres

nor any shares were allotted for consideration other than cash. Further, no shares were bought back during the said period.
Value Creation at

51,478.84
35.98
19,395.60
9,246.85
1,143.80
10,913.99
10,742.62
March 31, 2020
As on
` Million
 ver the period of five years immediately preceding March 31, 2021 and March 31, 2020, neither any bonus shares were issued
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
(f) I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the

Apollo Tyres Ltd

The Company has only one class of issued shares referred to as equity shares having a par value of ` 1 each. The holder of equity

NOTE B14(a)

Amount outstanding as on Amount outstanding as on

March 31, 2021 (` Million) March 31, 2020 (` Million)
Rate of
Current Current Details of security
Our ESG

Particulars interest per Terms of repayment

Non-current maturities of Non-current maturities of offered
Performance

annum
borrowings non current borrowings non current
borrowings borrowings

Annual Report 2020-21

Non-convertible debentures
1,150 - 8.65 % Non-convertible debentures of ` 1 Million each 1,150.00 - 1,150.00 - 8.65% Bullet payment on April 30, 2026 Refer note A below
1,050 - 8.65 % Non-convertible debentures of ` 1 Million each 1,050.00 - 1,050.00 - 8.65% Bullet payment on April 30, 2025 Refer note A below
1,050 - 8.65 % Non-convertible debentures of ` 1 Million each 1,050.00 - 1,050.00 - 8.65% Bullet payment on April 30, 2024 Refer note A below
1,500 - 7.80 % Non-convertible debentures of ` 1 Million each 1,498.34 - 1,497.54 - 7.80% Bullet payment on April 30, 2024 Refer note A below
900 - 7.50 % Non-convertible debentures of ` 1 Million each 900.00 - 900.00 - 7.50% Bullet payment on October 20, 2023 Refer note A below
Management

1,500 - 7.80 % Non-convertible debentures of ` 1 Million each 1,498.34 - 1,497.54 - 7.80% Bullet payment on April 28, 2023 Refer note A below
Discussion & Analysis

1,050 - 7.50 % Non-convertible debentures of ` 1 Million each 1,050.00 - 1,050.00 - 7.50% Bullet payment on October 21, 2022 Refer note A below
1,500 - 7.80 % Non-convertible debentures of ` 1 Million each 1,498.34 - 1,497.54 - 7.80% Bullet payment on April 29, 2022 Refer note A below
1,050 - 7.50 % Non-convertible debentures of ` 1 Million each - 1,050.00 1,050.00 - 7.50% Bullet payment on October 21, 2021 Refer note A below
5,000 - 8.75 % Non convertible debentures of ` 1 Million each 4,983.08 - - - 8.75% Bullet payment on April 09, 2030 Refer note A below
5,000 - 7.70 % Non convertible debentures of ` 1 Million each 4,983.08 - - - 7.70% ` 1,250 Million payable on May 17, Refer note A below
2024 and ` 3,750 Million payable on
Reports
Statutory

May 16, 2025.

Total 19,661.18 1,050.00 10,742.62 -
External commercial borrowings (ECB) from banks
Bank 1 - ECB I 1,821.31 - 1,880.27 - 0-1% above 3 Equal annual instalments Refer note A below
USD-LIBOR starting from FY 2022-23
Bank 2 - ECB I 1,821.08 - 1,879.97 - 0.25-1.25% 3 Equal annual instalments starting Refer note A below
above USD- from FY 2022-23
LIBOR
Bank 3 - ECB I 1,821.75 - 1,880.91 - 0-1% above 3 Equal annual instalments starting Refer note A below
Financial
Statements

USD-LIBOR from FY 2022-23

Bank 4 - ECB I 1,456.54 - 1,503.55 - 0.25-1.25% 3 Equal annual instalments starting Refer note A below
above USD- from FY 2022-23
LIBOR
Bank 5 - ECB I - 3,646.08 3,769.29 - 0-1% above Bullet payment on March 21, 2022 Refer note A below
USD-LIBOR
Total 6,920.67 3,646.08 10,913.99 -
243
 Amount outstanding as on Amount outstanding as on

244
March 31, 2021 (` Million) March 31, 2020 (` Million)
Rate of interest
Particulars Current maturities Current maturities Terms of repayment Details of security offered
Non-current Non-current per annum
of non current of non current
borrowings borrowings
borrowings borrowings
Foreign currency
non-resident
(FCNR) term loan
from banks
Bank 1 - FCNR I 90.27 180.53 279.93 186.62 0-1% above Repayment in 6 equal semi-annual Refer note A below
USD-LIBOR instalments starting from
December 31, 2019
Bank 1 - FCNR II 90.80 181.61 281.59 187.73 0-1% above Repayment in 6 equal semi-annual Refer note A below
USD-LIBOR instalments starting from
January 15, 2020
Bank 1 - FCNR III 281.65 281.64 582.28 291.14 0-1% above Repayment in 6 equal semi-annual Refer note A below
USD-LIBOR instalments starting from
September 30, 2020
Total 462.72 643.78 1,143.80 665.49
Rupee term loans
from banks
Bank 1 - Rupee 2,996.85 - 2,964.92 - 0-1% above 28 structured quarterly instalments Refer note A below
Term Loan One year MCLR after moratorium of 3 years from the
date of first disbursement
Bank 2 - Rupee 2,474.49 - 2,469.86 - 0-1% above 28 structured quarterly instalments Refer note A below
Term Loan One year MCLR after moratorium of 3 years from the
Factsheet
Corporate

date of first disbursement

Bank 3 - Rupee 1,973.22 - 1,968.75 - 0-1% above 28 structured quarterly instalments Refer note A below
Term Loan One year MCLR after moratorium of 3 years from the
date of first disbursement
Bank 4 - Rupee 500.00 - - - 0-1% above 28 structured quarterly instalments Refer note A below
Term Loan One year MCLR after moratorium of 3 years from the
date of first disbursement
Bank 5 - Rupee 985.77 11.25 996.60 - 6 months MCLR 32 structured quarterly instalments Refer note A below
Term Loan after moratorium of 2 years from the
From our
Leadership

date of first disbursement

Bank 6 - Rupee 148.24 - 146.72 - 0-2% above one Bullet payment on June 27, 2022 Refer note A below
Term Loan year T-bill
Bank 7 - Rupee 200.00 - 200.00 - 0-2% above one Bullet payment on March 27, 2023 Refer note A below
Term Loan year T-bill
Bank 8 - Rupee - 500.00 500.00 - 0-2% above one Bullet payment on March 29, 2022 Refer note A below
Term Loan year T-bill
Bank 9 - Rupee 250.00 - - 0-2% above one Bullet payment on December 29, 2023 Refer note A below
Term Loan year T-bill
Apollo Tyres

Total 9,528.57 511.25 9,246.85 -

Value Creation at

Apollo Tyres Ltd

Amount outstanding as on Amount outstanding as on
March 31, 2021 (` Million) March 31, 2020 (` Million)
Rate of interest
Particulars Current maturities Current maturities Terms of repayment Details of security offered
Non-current Non-current per annum
of non current of non current
borrowings borrowings
borrowings borrowings
Our ESG
Performance

Euro term loans

from banks
Bank 1 65.72 5.34 68.78 5.08 1.95% Monthly payment till April 30, 2033 Secured by mortgage

Annual Report 2020-21

on land and building
at Hamburg & Celle,
Germany
Bank 2 11,411.80 1,201.24 13,380.87 1,163.55 2-2.50% above Repayment in 10 semi-annual Refer note B below
EURIBOR instalments starting from September
13, 2020
Management

Bank 3 - 2,548.35 2,468.40 - 0-1% above Bullet repayment on August 6, 2021 Secured by Corporate
EURIBOR Guarantee from the
Discussion & Analysis

Company
Bank 4 - 3,590.21 3,477.55 - 0-1% above Bullet repayment on March 21, 2022 Secured by Corporate
EURIBOR Guarantee from the
Company
Total 11,477.52 7,345.14 19,395.60 1,168.63
USD loan from
Reports
Statutory

bank
Bank 1 - 20.47 - - 1.00% Repayable in 60 months, subsequently Unsecured
waived off in April 2021
Total - 20.47 - -
Deferred payment
liabilities
Deferred payment 31.17 4.82 35.98 4.46 7-8% Repayment along with interest in 240 Wind Mills purchased
credit I consecutive monthly instalments started under the deferred
from May 15, 2007 consideration payment
Financial

plan
Statements

Deferred payment - 0.21 - 1.47 8-9% Repayment along with Interest in 20 Engineering materials
credit II equal quarterly instalments started from purchased under the Parts
January 31, 2011 Management Agreement
(PMA) scheme
Total 31.17 5.03 35.98 5.93

Details of securities offered to existing lenders

Note A S ecured by pari-passu charge on the movable fixed assets of the company. Along with this security an exclusive charge on the immovable property of the Company’s
registered office in Kochi has also been created for one of the NCD issuances aggregating to ` 5,000 Million at 8.75% p.a.
Note B Apollo Vredestein B.V has provided guarantee for the loan which is secured by a pledge on the movable tangible assets (other than stock in trade, raw materials and
trade receivables) and a mortgage of its real estate being the land and buildings located in the Netherlands. In addition, Apollo Tyres (Hungary) Kft. has also provided
guarantee for the loan which is secured by a pledge of fixed assets and movable tangible assets (other than stock in trade, raw materials and trade receivables).
245
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

B15 OTHER FINANCIAL LIABILITIES B19 TRADE PAYABLES *

` Million
` Million
As on As on
As on As on Particulars
Particulars March 31, 2021 March 31, 2020
March 31, 2021 March 31, 2020
Trade payables (other than micro and small enterprises) 24,381.64 20,380.66
Derivative liabilities measured at fair value (refer note C12) 30.72 26.59
Employee related payable 2,644.06 2,118.49
Lease liability (refer note C7) 7,348.42 8,222.43
Payable to related parties (refer note C21) 412.30 420.53
7,379.14 8,249.02
27,438.00 22,919.68
* Trade payables include commission on net profits payable to whole-time directors ` 561.19 Million (` 217.26 Million).
NON-FINANCIAL LIABILITIES (NON-CURRENT)
B16 PROVISIONS
B20 OTHER FINANCIAL LIABILITIES
` Million
` Million
As on As on
Particulars As on As on
March 31, 2021 March 31, 2020 Particulars
March 31, 2021 March 31, 2020
Jubilee benefits (refer note C8) 128.42 180.78
(a) Current maturities of non-current borrowings *
Pension benefits (refer note C11) 834.65 899.02
Secured
Provision for constructive liability (refer note C8) 281.18 278.30
Debentures 1,050.00 -
Provision for sales related obligations (refer note C8) 313.63 319.03
1,557.88 1,677.13 (b) Term loans:
Foreign currency non-resident term loans 643.78 665.49
Euro term loans 7,345.14 1,168.63
B17 OTHER NON-CURRENT LIABILITIES
External commercial borrowings (ECB) 3,646.08 -
` Million
Rupee Term Loans 511.25 -
As on As on
Particulars (c) Deferred payment liabilities:
March 31, 2021 March 31, 2020
Security deposits received from dealers 68.03 85.92 Deferred payment credit I 4.82 4.46
Security deposits received from vendors 86.82 61.75 Deferred payment credit II 0.21 1.47
Deferred revenue arising from government grant 8,216.25 6,956.05 Unsecured
Statutory dues payable 4,261.78 - USD loan from bank 20.47 -
Others 35.32 79.82 13,221.75 1,840.05
12,668.20 7,183.54 Interest accrued but not due on borrowings 1,531.09 749.61
Unclaimed dividends # 94.37 109.57
Accounts payable - capital 4,067.01 4,595.85
CURRENT LIABILITIES
Payable to micro, small and medium enterprises - capital (refer note C18) 186.28 76.65
FINANCIAL LIABILITIES (CURRENT)
Interest payable to micro, small & medium enterprises (refer note C18) 10.58 10.58
B18 BORROWINGS
Payable to related parties (refer note C21) 435.96 247.60
` Million
Security deposits - vendors 384.66 385.22
As on As on
Particulars Advances received / credit balance from customers 5,475.18 3,559.50
March 31, 2021 March 31, 2020
At amortised cost Derivative liabilities measured at fair value (refer note C12) 23.00 41.36
Secured Lease liability (refer note C7) 1,930.68 1,987.21
27,360.56 13,603.20
From banks:
Cash credit * 4.85 0.69
* For details regarding repayment terms, interest rate and nature of security on current maturities of non-current borrowings (refer
Working capital demand loan * - 2,330.00 note B14(a)).
Bank overdrafts # 807.17 1,059.01 # Includes ` 4.86 Million (` 4.30 Million) which has not been transferred to the Investor Education and Protection Fund under Section 124 of the
Unsecured Companies Act, 2013, as per the orders / instructions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992.
From banks:
Packing credit ** 1,000.00 - NON-FINANCIAL LIABILITIES (CURRENT)
Working capital demand loan ** - 8,850.00 B21 OTHER CURRENT LIABILITIES
Others ## 1,221.41 2,080.31 ` Million
3,033.43 14,320.01 As on As on
Particulars
March 31, 2021 March 31, 2020
*  ash credits and working capital demand loans are repayable on demand and are secured by a first charge on raw materials, work-in-progress,
C
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 Statutory dues payable 4,640.04 2,504.34
Tamil Nadu and at head office in Gurgaon, Haryana together with the factory buildings, plant and machinery and equipment, both present and Deferred revenue 212.46 32.40
future. The interest rate on these loans are in the range of 3.00% p.a to 9.00% p.a (6.00% p.a to 9.00% p.a). Others 173.33 126.55
# Overdraft facility availed by one of the subsidiaries, Reifencom Gmbh, Hannover, is secured by a first charge on stock and receivables of Reifencom 5,025.83 2,663.29
Gmbh, Hannover, both present and future and further supported by corporate guarantee issued by Apollo Tyres Cooperatief U.A. The interest
rate on these loans is Euribor + 1.5% (Euribor + 1.5%).
** Packing credit and working capital demand loans are repayable on demand. The interest rate on these loans are in the range of 3.00% p.a to
9.00% p.a (6.00% p.a to 9.00% p.a).
## T
 hese are trade financing facility availed by one of the subsidiary company. The interest rate on these loans are in the range of 1.18% p.a to
1.40% p.a (0.55% p.a to 2.60% p.a.)

246 Apollo Tyres Ltd Annual Report 2020-21 247

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

B22 PROVISIONS B26 MANUFACTURING AND OTHER EXPENSES

` Million ` Million
As on As on Year ended Year ended
Particulars Particulars
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Provision for compensated absences (refer note C8) 280.79 269.56 Cost of materials consumed: *
Provision for superannuation (refer note C8) 31.37 28.02 Raw materials consumed 70,653.00 70,498.26
Provision for gratuity (refer note C11) 81.47 - Purchase of stock-in-trade:
Provision for constructive liability (refer note C8) 53.93 51.99 Purchase of finished goods - tyres, tubes and flaps 20,093.43 18,341.14
Provision for contingencies (refer note C8) 425.00 425.00 Employee benefits expense: *
Provision for sales related obligations (refer note C8) 2,009.62 1,969.53 Salaries and wages 20,510.53 20,295.13
2,882.18 2,744.10 Contribution to provident and other funds 3,120.83 2,930.78
Staff welfare 1,502.35 1,596.08
B23 CURRENT TAX LIABILITIES (NET) 25,133.71 24,821.99
` Million Other expenses: *
As on As on Consumption of stores and spare parts 1,158.08 1,255.00
Particulars
March 31, 2021 March 31, 2020
Power and fuel 4,692.96 4,282.50
Provision for taxation 25,092.40 23,033.08 Conversion charges 723.76 632.55
Advance tax (24,154.80) (22,319.85) Repairs and maintenance
937.60 713.23 - Machinery 587.06 799.98
- Buildings 157.99 92.17
B24 OTHER OPERATING INCOME - Others 2,338.66 2,256.89
` Million Rent (refer note C7) 113.39 242.17
Year ended Year ended Insurance 560.84 498.10
Particulars
March 31, 2021 March 31, 2020
Rates and taxes 176.40 173.99
Investment promotion subsidy (refer note C10) 1,765.71 87.15
Sitting fees to non-executive directors (refer note C21) 5.77 8.05
Unwinding of deferred income (refer note C10) 1,572.57 1,735.41
Commission to non-executive directors (refer note C21) 45.00 40.00
Sale of raw material scrap 376.28 396.67
Loss on foreign exchange fluctuation (net) - 17.47
Provisions / liabilities no longer required written back 9.09 11.73
Travelling, conveyance and vehicle 815.69 2,109.28
Subsidy income - others 677.25 232.00
Postage, telephone and stationery 264.13 282.81
Others 23.02 74.08
Conference 15.59 173.30
4,423.92 2,537.04
Freight and forwarding 7,776.99 7,182.62
Commission on sales 51.94 51.90
B25 OTHER INCOME Sales promotion 379.54 477.20
` Million Advertisement and publicity 3,494.74 4,321.61
Particulars
Year ended Year ended Corporate social responsibility (refer note C19) 129.91 183.70
March 31, 2021 March 31, 2020
Bank charges 201.22 193.41
(a) Interest income:
Statutory auditor's remuneration (refer note C13) 78.88 66.97
- Bank deposits 624.63 1.87
Provision for doubtful debts / advances (refer note C5) 140.73 76.83
- Other financial assets measured at amortised cost * 191.42 28.71
Legal and professional 560.23 715.62
- Others 4.98 25.24
Miscellaneous # 2,447.05 2,402.80
(b) Dividend income from investments - fair value through profit and loss 26,916.55 28,536.92
Mutual funds 2.88 2.67
* Includes expense towards research and development
(c) Others
# Includes donation to electoral trust Nil (` 300 Million)
Profit on sale of property, plant and equipment (net) 36.66 19.67
Gain on foreign exchange fluctuation (net) 263.96 -
Miscellaneous 169.31 158.60
B27 FINANCE COSTS
` Million
1,293.84 236.76
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
* This includes Government grant. Refer note C10
(a) Interest expense:
Interest on fixed-term loans 1,558.74 543.16
Interest on debentures 1,217.34 575.22
Interest on current loans 493.10 534.55
Others * 1,108.58 1,103.95
(b) Other borrowing costs 51.87 51.45
4,429.63 2,808.33

* Includes interest expense pertaining to leasing arrangements. Refer note C7

248 Apollo Tyres Ltd Annual Report 2020-21 249

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

C. OTHER NOTES
forming Part of the Consolidated Financial Statements

1 DIRECTLY ATTRIBUTABLE EXPENSES CAPITALIZED / INCLUDED IN CAPITAL WORK IN PROGRESS: Impairment

An impairment test was carried out as on March 31, 2021, details of the test are as outlined below:
` Million
` Million
Year ended Year ended
Particulars Goodwill,
March 31, 2021 March 31, 2020
Particulars Trademarks# Trademarks and
Raw material consumed 61.39 22.95 Other intangibles*
Salaries, wages and bonus 219.17 352.22 Discount Rate 8.20% 10.70%
Welfare expenses 41.17 22.61 Growth Rate 2% 2%
Rent 1.49 11.18 Number of years for which cash flows were considered 4 4
Travelling, conveyance and vehicle 7.16 36.22 Test Result No Impairment No Impairment
Postage, telephone and stationery 1.30 6.66 Loss Loss
Power and fuel 106.15 22.77
Insurance 12.71 7.37 An impairment test was carried out as on March 31, 2020, details of the test are as outlined below:
Legal and professional 4.77 64.80 ` Million
Miscellaneous 51.13 37.64 Goodwill,
Particulars Trademarks# Trademarks and
Total 506.44 584.42 Other intangibles*
Discount Rate 8.20% 10.70%
2  orrowing costs capitalized / transferred to capital work in progress during the year is ` 849.92 Million (` 1,377.21 Million) and
B Growth Rate 2% 2%
the capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest rate Number of years for which cash flows were considered 5 5
applicable to the Company's general borrowings during the year, in this case 7.93% p.a. (7.38% p.a). Test Result No Impairment No Impairment
Loss Loss
3 Impairment testing of intangibles with indefinite life # pertains to AVBV acquisition
Intangibles with indefinite useful life comprises goodwill, trademarks and other intangible assets. * pertains to Reifencom Gmbh Hannover acquisition

 or the purpose of annual impairment testing, goodwill is allocated to the cash generating units expected to benefit from the
F
Growth rates
synergies of the business combinations in which the goodwill arises. The Group acquired 100% shareholding of Reifencom Gmbh
The growth rates used are in line with the growth rate of the industry and the countries in which the entities operates and are
Hannover, one of the largest tyre distributor in Germany on January 1, 2016. Deferred consideration payable on acquisition
consistent with internal / external sources of information.
of subsidiary, payable to erstwhile members of Reifencom Gmbh Hannover and the fair value of the net assets acquired and
intangibles recognised has been considered as a part of purchase consideration for computation of goodwill. In addition to Discount rates
goodwill, certain trademarks and other intangible assets were also recognized in the consolidated financial statements which The discount rates takes into consideration market risk and specific risk factors of the cash generating unit. The cash flow projections
were not recorded in the separate financial statements of the acquiree. Further, there are certain other trademarks that were are based on the forecasts made by the management.
acquired as part of acquisition of AVBV (Apollo Vredestein B.V.).
Sensitivity
 s on March 31, 2021, the carrying value of other intangible assets amounting to ` 357.55 million (` 346.31 million) have been
A The management believes that any reasonable possible changes in the key assumptions would not cause the cash generating unit’s
determined to have indefinite useful life (refer note B1). carrying amount to exceed its recoverable amount.

4 INVENTORIES
Changes in the net carrying amount of trademarks is summarized as below:
` Million i. Out of the total inventories of ` 33,185.34 Million (` 32,069.16 Million), the carrying amount of inventories carried at fair value
Particulars
As on As on less costs to sell amounted to ` 1,285.54 Million (` 377.82 Million).
March 31, 2021 March 31, 2020
Opening balance 2,181.41 2,037.07 ii.  he amount of write down of inventories to net realizable value recognised as an expense was ` 268.13 Million (` 178.39
T
Foreign exchange translation impact 70.66 144.34 Million).
Closing balance 2,252.07 2,181.41
 he cost of inventories recognised as an expense during the year in respect of continuing operations was ` 95,103.17 Million
iii. T
(` 92,010.91 Million).
Changes in the net carrying amount of goodwill is summarized as below:
` Million
5 CHANGES IN PROVISION FOR DOUBTFUL TRADE RECEIVABLES:
As on As on
Particulars
March 31, 2021 March 31, 2020 ` Million
Opening balance 2,134.49 1,993.25 Particulars
As on As on
March 31, 2021 March 31, 2020
Foreign exchange translation impact 69.14 141.24
Opening balance 509.40 439.62
Closing balance 2,203.63 2,134.49
Addition during the year 140.73 76.83
Adjustment during the year 231.63 -
Utilisation / reversal during the year (26.93) (35.40)
Foreign exchange translation impact 12.51 28.35
Closing balance 867.34 509.40

250 Apollo Tyres Ltd Annual Report 2020-21 251

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

6 DESCRIPTION OF NATURE AND PURPOSE OF EACH viii. Capital reserve on forfeiture of shares v Future minimum lease payments are as follows:
RESERVE  his reserve was created on forfeiture of shares by
T ` Million
the Company. The reserve is not available for the As on March 31, 2021 As on March 31, 2020
i. Securities premium Particulars
Lease payments Finance charges Net present value Lease payments Finance charges Net present value
distribution to the shareholders.
Securities premium is used to record the premium on Minimum lease payments due
issue of shares. The reserve will be utilised in accordance Within 1 year 2,374.94 (444.26) 1,930.68 2,478.60 (491.39) 1,987.21
ix. Retained earnings
with provisions of the Act. 1-2 years 2,022.84 (373.51) 1,649.33 2,117.38 (396.09) 1,721.29
Retained earnings are created from the profit of the
2-3 years 1,558.75 (313.43) 1,245.32 1,758.07 (350.87) 1,407.20
Group, as adjusted for distribution to owners, transfer
ii. General reserve 3-4 years 1,219.43 (260.72) 958.71 1,319.37 (295.31) 1,024.06
to other reserve, remeasurement of defined benefit
G eneral reserve is created from time to time by way 4-5 years 988.17 (213.63) 774.54 1,016.34 (247.21) 769.13
plans etc.
of transfer of profits from retained earnings for After 5 years 3,118.15 (397.63) 2,720.52 3,876.46 (575.71) 3,300.75
appropriation purpose. General reserve is created by Total 11,282.28 (2,003.18) 9,279.10 12,566.22 (2,356.58) 10,209.64
x. Foreign currency translation reserve
transfer from one component of equity to another and
 his balance represents exchange rate adjustment
T
is not an item of other comprehensive income. vi Lease payments not recognised as a liability
arising on consolidation of foreign subsidiaries due to
The expense relating to payments not included in the measurement of the lease liability is as follows:
difference in opening, average and closing conversion
iii. Capital reserve on consolidation
rates. ` Million
 his balance represents excess of net assets of AVBV
T
As on As on
acquired at fair value over the purchase consideration. Particulars
March 31, 2021 March 31, 2020
7 LEASES
Short term leases 8.35 47.93
iv. Capital reserve on Apollo (Mauritius) Holdings i Nature of leasing activities Leases of low value assets 36.65 53.55
Private Limited (“AMHPL”) merger The Group has entered into lease arrangements for various Variable lease payments 68.39 140.69
 MHPL erstwhile (subsidiary company) was merged
A warehouses, vehicles, plant and equipments, offices and Total 113.39 242.17
with the Company resulting in a capital reserve. other assets that are renewable on a periodic basis with
approval of both lessor and lessee. vii Additional information on the right-of-use assets by class of assets is as follows:
v. Debenture redemption reserve ` Million
 he Company is required to create a debenture
T ii The Group does not have any lease commitments towards Particulars Buildings Plant & equipments Vehicles Others Total

redemption reserve out of the profits which are available variable rent as per the contract. Gross Carrying Value
for redemption of debentures. As on April 01, 2020 11,471.89 596.90 579.17 13.11 12,661.07
iii Each lease generally imposes a restriction that, unless there Additions 1,123.84 0.72 129.57 - 1,254.13
is a contractual right for the Company to sublet the asset Disposals 611.63 82.99 104.30 - 798.92
vi. Capital subsidy
to another party, the right-of-use asset can only be used Effect of foreign currency translation 130.52 15.01 24.15 0.46 170.14
T his balance represents subsidy received under New
by the Company. Leases are either non-cancellable or may As on March 31, 2021 12,114.62 529.64 628.59 13.57 13,286.42
Industrial Policy 2007 of the Government of Tamil
only be cancelled by incurring a substantive termination Accumulated depreciation
Nadu for expansion and employment generation within
fee. The Company is prohibited from selling or pledging the As on April 01, 2020 2,058.53 179.01 195.94 4.56 2,438.04
SIPCOT Industrial park.
underlying leased assets as security. For leases over office Additions 1,996.27 171.35 209.93 6.66 2,384.21
buildings and factory premises the Company must keep Eliminated on disposal 487.29 82.99 104.30 - 674.58
vii. Capital redemption reserve
those properties in a good state of repair and return the Effect of foreign currency translation 22.11 4.21 6.99 0.10 33.41
 his balance has been created in accordance with
T
properties in their original condition at the end of the lease. As on March 31, 2021 3,589.62 271.58 308.56 11.32 4,181.08
provision of the Act for the buy back of equity shares
Net Carrying Value
from the market.
As on March 31, 2021 8,525.00 258.06 320.03 2.25 9,105.34

iv Lease liabilities are presented in the consolidated statement of financial position as follows: ` Million
Particulars Buildings Plant & equipments Vehicles Others Total
` Million
As on As on Gross Carrying Value
Particulars
March 31, 2021 March 31, 2020 As on April 01, 2019 - - - - -
Non current 7,348.42 8,222.43 Additions 11,259.31 569.88 544.85 12.24 12,386.28
Current 1,930.68 1,987.21 Disposals 70.13 - - - 70.13
Total 9,279.10 10,209.64 Effect of foreign currency translation 282.71 27.02 34.32 0.87 344.92
As on March 31, 2020 11,471.89 596.90 579.17 13.11 12,661.07
Accumulated depreciation
As on April 01, 2019 - - - - -
Additions 2,008.35 173.21 185.77 4.32 2,371.65
Eliminated on disposal - - - - -
Effect of foreign currency translation 50.18 5.80 10.17 0.24 66.39
As on March 31, 2020 2,058.53 179.01 195.94 4.56 2,438.04
Net Carrying Value
As on March 31, 2020 9,413.36 417.89 383.23 8.55 10,223.03
The aggregate depreciation expense on right-of-use assets is included under depreciation and amortization expense in the consolidated
statement of profit and loss.

252 Apollo Tyres Ltd Annual Report 2020-21 253

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

viii The following are the amounts recognised in the consolidated statement of profit and loss 9 INCOME TAXES
` Million
i) Reconciliation between average effective tax rate and applicable tax rate
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Year ended March 31, 2021 Year ended March 31, 2020
Depreciation expense of right-of-use assets 2,384.21 2,371.65 Particulars
` Million Rate (%) ` Million Rate (%)
Interest expense on lease liabilities 505.77 555.28
Profit before tax 5,612.16 5,434.37
COVID 19 related rent concessions (15.72) -
Income tax using the Company’s domestic tax rate 1,961.11 34.94 1,898.77 34.94
Interest income on fair value of security deposit (28.66) (28.73)
Tax effect of
Expense relating to short-term leases/ leases of low value assets/ variable lease payments 113.39 242.17
(included in other expenses) Effect of different tax rates in foreign jurisdictions 220.14 3.92 (208.85) (3.84)
Total 2,958.99 3,140.37 Change in tax rates in foreign jurisdictions 306.79 5.47 196.37 3.61
Non deductible expenses 253.95 4.52 422.05 7.77
ix Total cash outflow pertaining to leases during the year ended March 31, 2021 is ` 2,649.42 Million (` 2,595.62 Million). Tax exempt income (556.64) (9.92) (608.07) (11.19)
Tax incentives and concessions (56.61) (1.01) (1,167.57) (21.47)
x  s on March 31, 2021, the Group has committed short term leases and total commitment at that date is ` 68.69 Million
A
Others (18.71) (0.33) 137.72 2.53
(` 139.70 Million). Income tax expense recognised in the consolidated 2,110.03 37.59 670.42 12.35
statement of profit and loss
8 PROVISIONS - NON-CURRENT / CURRENT

i) Changes in non-current provisions is as below: ii) Components of deferred tax liability (net)
` Million
` Million As on As on
Particulars
Provision for March 31, 2021 March 31, 2020
Provision for sales Provision for jubilee
Particulars constructive Tax effect of items constituting deferred tax liabilities
related obligations * benefits #
liability **
Depreciation and amortisation 15,953.87 13,280.26
As on March 31, 2019 329.53 286.35 183.21
Employee benefits 50.97 26.62
Addition during the year - 18.05 2.52
Others 778.65 676.48
Utilisation / reversal during the year (10.50) (13.24) (17.12)
Gross deferred tax liability (a) 16,783.49 13,983.36
Foreign exchange translation impact - (12.86) 12.17
Tax effect of items constituting deferred tax assets
As on March 31, 2020 319.03 278.30 180.78
Carry forward tax losses 661.68 1,761.13
Addition during the year - 4.32 211.40
Employee benefits 331.87 303.11
Utilisation / reversal during the year (5.40) (16.93) (270.15)
Provisions for doubtful debt / advances 141.89 141.89
Foreign exchange translation impact - 15.49 6.39
Minimum alternate tax entitlement 5,084.54 3,179.33
As on March 31, 2021 313.63 281.18 128.42
Others 1,354.74 1,121.01
* Represents estimates for payments to be made in future for sales related obligations (including warranties). Gross deferred tax asset (b) 7,574.72 6,506.47
** Includes post-employment benefit obligation for the employees of related party engaged by the company at its Kalamessary plant taken on lease Deferred tax liability (net) (a - b) 9,208.77 7,476.89
and provision on account of post employment medical benefit obligation of ex-employees in case of Apollo Tyres Africa (Pty) Ltd.
# There is a jubilee scheme in place for employees of few subsidiaries wherein benefits are paid to the employees when they reach an employment iii) Components of deferred tax asset (net)
period of 12.5, 25 or 40 years. ` Million
As on As on
Particulars
March 31, 2021 March 31, 2020
ii) Changes in current provisions is as below:
Tax effect of items constituting deferred tax assets
Employee benefits 168.19 166.60
` Million
Provision for Carry forward tax losses 1,733.25 191.36
Provision for sales Provision for Provision for Provision for
Particulars compensated Others 287.18 87.06
related obligations * constructive liability contingencies superannuation
absences
Deferred tax asset (net) 2,188.62 445.02
As on March 31, 2019 246.09 1,770.70 50.42 425.00 25.00
Addition during the year 230.32 3,043.22 51.99 - 103.69 One of the subsidiary company has net carry forward losses on which deferred tax asset has not been recognised amounting to
Utilisation / reversal during the year (208.59) (2,904.62) (50.42) - (100.67) ` 208.73 Million as on March 31, 2021 (` 196.91 Million as on March 31, 2020) which has a 15-20 year carry forward period.
Foreign exchange translation impact 1.74 60.23 - - -
As on March 31, 2020 269.56 1,969.53 51.99 425.00 28.02
Addition during the year 236.18 3,353.28 53.93 - 117.83
Utilisation / reversal during the year (227.02) (3,339.67) (51.99) - (114.48)
Foreign exchange translation impact 2.07 26.48 - - -
As on March 31, 2021 280.79 2,009.62 53.93 425.00 31.37

* Represents estimates for payments to be made in future for sales related obligations (including warranties).

254 Apollo Tyres Ltd Annual Report 2020-21 255

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

iv) Components of deferred tax expense Company. The Company is entitled, interalia, for refund
to a superannuation fund administered and maintained
` Million of an amount equal to Net SGST paid by the Company to
by the Life Insurance Corporation of India (LIC). The
Particulars
Year ended Year ended GoAP in the form of Investment Promotion Subsidy. As the
March 31, 2021 March 31, 2020 Company has no liability for future superannuation
Company has fulfilled the relevant obligations, the Company
Tax effect of items constituting deferred tax liabilities fund benefits other than its annual contribution and
has recognized subsidy income of ` 23.09 Million (Nil) as
Depreciation and amortisation 2,534.36 1,974.06 recognizes such contributions as an expense in the
other operating income, being the eligible amount of refund
Others 66.40 199.58 year incurred. The amount of contribution paid by the
of Net SGST paid by the Company to GoAP.
Sub-total (a) 2,600.76 2,173.64 Company to Superannuation Fund is ` 117.83 Million
Tax effect of items constituting deferred tax assets (` 103.69 Million).
b) Export promotion capital goods
Employee benefits 65.66 10.66
The Company had imported Property, plant and equipment b. Provident fund: Contributions are made to the
Carry forward tax losses 416.45 1,610.79
under the Export Promotion Capital Goods (EPCG) scheme Company’s employees’ provident fund trust / regional
Minimum alternate tax entitlement 1,905.21 1,026.56
Others 350.88 129.26 wherein the Company is allowed to import capital goods provident fund in accordance with the fund rules. The
Sub-total (b) 2,738.20 2,777.27 including spares without payment of customs duty, subject interest rate payable to the beneficiaries every year is
Total (a - b) (137.44) (603.63) to certain export obligations which should be fulfilled being notified by the Government.
within specified time period. During the year, the custom
I n the case of contributions to the trust, the Company
duty benefit received amounts to ` 1,202.01 Million
v) The movement in net deferred tax liability is as follows: has an obligation to make good the shortfall, if any,
(` 2,531.28 Million) with a corresponding increase in the
` Million between the return from the investments of the trust
value of property, plant and equipment and Capital Work
Particulars
As on As on and the notified interest rate and recognises such
March 31, 2021 March 31, 2020 in Progress. The grant amounting to ` 1,572.57 Million
obligation as an expense.
Net deferred tax liability at the beginning of the year 7,031.87 7,706.77 (` 1,735.41 Million) where export obligations have been met,
Deferred tax expense / (income) recognised in the consolidated statement of profit and loss (137.44) (603.63) have been recognized in consolidated statement of profit The amount of contributions made by the Company to
Deferred tax expense / (income) recognised in other comprehensive income 64.49 (194.62) and loss as other operating income. At the year end, the employees’ provident fund trust / regional provident
Foreign exchange translation impact 61.23 123.35 portion of grant for which the export obligation has not been fund is ` 298.41 Million (`308.19 Million).
Net deferred tax liability at the end of the year 7,020.15 7,031.87 met is retained in deferred revenue under other non current
liabilities. B. Foreign operations
Employees of Apollo Vredestein B.V. had participated
c) The Group has successfully completed its greenfield project
in defined contribution pension plan. Under this pension
in Gyöngyöshalász, Hungary through its subsidiary Apollo
vi) Pursuant to the Taxation Laws (Amendment) Ordinance, 2019 Company to GoTN in the form of Investment Promotion plan, fixed contributions are paid to the insurance
Tyres Hungary Kft (ATH Kft) for manufacturing of passenger
issued on September 20, 2019, corporate assesses have been Subsidy (referred to as Phase I). As the Company has fulfilled company. Apollo Vredestein B.V. has no legal or
car and commercial vehicle tyres. For this project, ATH Kft
given the option to apply lower income tax rate with effect the relevant obligations, the Company has recognized constructive obligation to pay further contribution and
had entered into an agreement for grant with the Ministry
from April 01, 2019, subject to certain conditions specified subsidy income of ` 1,606.97 Million (` 87.15 Million) as the insurance service provider is responsible to hold
of National Development, Government of Hungary on June
therein. The Company has carried out an evaluation and other operating income, being the eligible amount of refund sufficient assets to pay all employee benefits relating
30, 2014. The Project start date for this investment was June
based on its forecasted profits, believes it will not be beneficial of Net Output (VAT + CST) / SGST paid by the Company to to employee service. Contributions that will not be
23, 2014 and the Investment completion date was December
for the Company to choose the lower tax rate option in the GoTN. settled within 12 months are discounted and recognized
31, 2019. ATH Kft has informed to the authority for project
near future. Accordingly, no effect in this regard has been as liability.
In addition to above, the Company is entitled, for refund of completion within original stipulated time. The plant is under
considered in measurement of tax expense for the year ended
an amount equal to 1% of the capital investment for a period production ramp up phase. This grant is subject to fulfillment  he other foreign subsidiaries in the Group have
T
March 31, 2021 and March 31, 2020.
of 12 years to be payable in equal annual instalments in the of certain obligations by ATH Kft. contributed to various defined contribution plans as per
Management, however, will continue to review its form of Investment Promotion Capital Subsidy (referred the local laws of the respective countries.
 s ATH Kft has fulfilled its periodical obligations as per the
A
profitability forecast at regular intervals and make necessary to as Phase II). Accordingly, the Company has recognised
incentive agreement, an amount of Nil (` 171.80 Million) has  he amount of contribution made by various foreign
T
adjustments to tax expense when there is reasonable grant receivable at its fair value, amounting to ` 1,811.72
been received during the year, being the eligible amount of subsidiaries is ` 127.65 Million (` 181.85 Million).
certainty to avail the beneficial (lower) rate of tax. Million under non-current financial assets and ` 385.80
grant during the year. This amount has been accounted as
Million under current financial assets. Deferred grant
vii) The group has concluded that the deferred tax assets will deferred revenue (included in other non-current liabilities). ii. Defined benefit plans
income amounting ` 1,763.44 Million is recognised under
be recoverable using the estimated future taxable income A. Indian operations
other non-current liabilities and ` 135.65 Million under Out of the total grant, ` 203.77 Million (` 166.58 Million)
based on the business plans and budgets for the Company / Gratuity
other current liabilities. Deferred income will be recognised has been amortised during the year & recognized as income
subsidiary companies. The Company operates a defined benefit gratuity plan. Every
in the statement of profit or loss on a systematic basis over in consolidated statement of profit and loss. Amortisation
employee who has completed five years or more of service
the useful life of the asset (15 years). During the year, the of grant is based on relevant assets depreciation which have
10 GOVERNMENT GRANTS receives gratuity on leaving the Company as per the Payments
Company has recorded grant income amounting to ` 135.65 been subsidised. The un-amortized portion of grant has been
of Gratuity Act, 1972. The scheme is funded with LIC.
a) Investment promotion subsidy Million (Nil) under Other Operating Income and accretion of retained in deferred revenue under other non-current liabilities.
 he Government of Tamil Nadu (GoTN) has sanctioned
T grant recoverable as finance income amounting to ` 162.78 T he following table summarizes the components of net
a structured package of assistance to the Company for Million (Nil) under Other income. 11 EMPLOYEE BENEFIT LIABILITY benefit expense recognized in the consolidated statement
setting up / expansion of their project in the state of Tamil of profit and loss and the funded status and amounts
 lso, the Government of Andhra Pradesh (GoAP) has
A i. Defined contribution plans
Nadu, pursuant to which a Memorandum of Understanding recognized in the consolidated balance sheet for the
sanctioned a structured package of assistance to the A. Indian operations
(MoU) executed between GoTN and the Company. respective plan:
Company for setting up of their project in the state of a. Superannuation plan: The Company contributes a sum
The Company is entitled, interalia, for refund of an amount
Andhra Pradesh, pursuant to which a Memorandum of equivalent to 15% of the eligible employees’ basic salary
equal to Net Output (VAT + CST) / SGST paid by the
Understanding (MoU) executed between GoAP and the

256 Apollo Tyres Ltd Annual Report 2020-21 257

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Consolidated statement of profit and loss The Company’s gratuity funds are managed by the LIC and therefore the composition of the fund assets in not presently ascertained.
` Million

Particulars
Year ended Year ended Maturity profile of defined benefit obligation
March 31, 2021 March 31, 2020
` Million
Current service cost ^ 363.11 360.25
As on As on
Interest cost on benefit obligation * 102.99 88.92 Particulars
March 31, 2021 March 31, 2020
Actual return on plan assets* (98.73) (77.31) 0-1 year 191.51 179.02
Expense recognized in the consolidated statement of profit and loss 367.37 371.86 1-2 year 62.76 63.86
2-3 year 68.88 62.70
^ Included in employee benefit expense
3-4 year 87.11 65.81
* Included in finance cost
4-5 year 86.43 70.90
More than 5 years 1,587.22 1,304.66
Other comprehensive income (experience adjustment) Total 2,083.91 1,746.95
` Million

Particulars
Year ended Year ended Principal assumptions for gratuity
March 31, 2021 March 31, 2020
` Million
Actuarial (gain) / loss for the year on defined benefit obligation (71.35) 230.40
As on As on
Actuarial (gain) / loss for the year on plan asset 1.67 15.00 Particulars March 31, 2021 March 31, 2020
Total (69.68) 245.40 Rate (%) Rate (%)
a) Discount rate 6.91 6.88
b) Future salary increase* 6.00 6.00
Consolidated balance sheet
c) Expected rate of return on plan assets 6.95 7.43
Net asset / (liability) recognised in the consolidated balance sheet
c) Retirement age (years) 58.00 58.00
` Million
d) Mortality table IALM (2012-2014) IALM (2012-2014)
As on As on
Particulars e) Ages (withdrawal rate %)
March 31, 2021 March 31, 2020
Fair value of plan assets at the end of the year (a) 2,002.44 1,946.22 Up to 30 years 3.00 3.00
Present value of defined benefit obligation at the end of the year (b) 2,083.91 1,746.95 From 31 to 44 years 2.00 2.00
Net asset / (liability) recognized in the consolidated balance sheet (a - b) (81.47) 199.27 Above 44 years 1.00 1.00
* The estimates of future salary increase take into account inflation, seniority, promotion and other relevant factors.
Changes in the present value of the defined benefit obligation Estimated amount of contribution in the immediate next year is ` 125.25 Million (` 123.32 Million).
` Million
As on As on
Particulars Sensitivity analysis of the defined benefit obligation
March 31, 2021 March 31, 2020
Present value of obligations as at the beginning of the year 1,746.95 1,162.30 ` Million
Interest cost 102.99 88.92 Impact of change in Discount rate Salary increase Attrition rate
Current service cost 363.11 360.25 Present value of obligation as on March 31, 2021 2,083.91 2,083.91 2,083.91
Benefits paid (57.79) (94.92) Impact due to increase of 0.50% (72.15) 78.66 (11.83)
Actuarial loss / (gain) on obligation (71.35) 230.40 Impact due to decrease of 0.50% 78.34 (73.07) 12.73
Present value of obligation as at the end of the year 2,083.91 1,746.95
Impact of change in Discount rate Salary increase Attrition rate
Changes in the fair value of plan assets Present value of obligation as on March 31, 2020 1,746.95 1,746.95 1,746.95
` Million Impact due to increase of 0.50% (69.34) 75.62 (9.92)
Particulars
As on As on Impact due to decrease of 0.50% 75.34 (70.21) 10.67
March 31, 2021 March 31, 2020
Fair value of plan assets as at the beginning of the year 1,946.22 1,206.66
B. Foreign operations
Actual return on plan assets 98.73 77.31
The pension liability as recorded in the consolidated balance sheet relates to the defined benefit plan of Apollo Vredestein GmbH
Contributions 16.95 772.17
and Reifencom Gmbh Hannover where the actuarial calculation was performed by certified actuarial firms.
Benefits paid (57.79) (94.92)
Actuarial (loss) / gain on plan assets (1.67) (15.00)
Fair value of plan assets as at the end of the year 2,002.44 1,946.22 1 Apollo Vredestein GmbH
Principal assumptions
` Million
As on As on
Particulars March 31, 2021 March 31, 2020
Rate (%) Rate (%)
Inflation 1.75 1.75
Indexation non-active members 1.75 1.75
Mortality table Heubeck 2018G Heubeck 2018G
Individual salary increase (dependent on age) 3.00 3.00
Discount rate 1.10 0.60

258 Apollo Tyres Ltd Annual Report 2020-21 259

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Changes in the present value of the defined benefit obligation Changes in the present value of the defined benefit obligation
` Million ` Million
As on As on As on As on
Particulars Particulars
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Defined benefit obligation Present value of obligation as at the beginning of the year 127.79 102.08
Present value of obligation as at the beginning of the year 899.02 671.48 Service cost 0.44 0.31
Service cost 22.80 16.06 Interest cost 0.80 1.86
Interest cost 5.55 12.07 Remeasurements due to experience 0.51 0.35
Benefits paid (28.39) (21.66) Remeasurements due to change in financial assumptions (6.67) 15.00
Remeasurements due to experience (9.70) (7.74) 122.87 119.60
Remeasurements due to change in financial assumptions (84.61) 171.87 Foreign exchange translation impact 4.17 8.19
804.67 842.08 Present value of obligation as at the end of the year 127.04 127.79
Foreign exchange translation impact 29.98 56.94
Present value of obligation as at the end of the year 834.65 899.02
Changes in the fair value of plan assets
` Million
Net asset / (liability) recognised in the consolidated balance sheet Particulars
As on As on
March 31, 2021 March 31, 2020
` Million
Fair value of plan assets as at the beginning of the year 142.84 129.55
As on As on
Particulars Actuarial gain on plan assets 3.64 1.61
March 31, 2021 March 31, 2020
Fair value of plan assets as at the end of the year (a) - - Interest income 0.89 2.37
Present value of defined benefit obligation as at the end of the year (b) 834.65 899.02 147.37 133.53
Net asset / (liability) recognized in the consolidated balance sheet (a - b) (834.65) (899.02) Foreign exchange translation impact 4.57 9.31
Fair value of plan assets as at the end of the year 151.94 142.84
Sensitivity analysis
Net asset / (liability) recognised in the consolidated balance sheet
Change in defined Change in defined
Change in assumption Change in assumption ` Million
Particulars benefit obligation benefit obligation
2020-21 2020-21 2019-20 2019-20 As on As on
Particulars
March 31, 2021 March 31, 2020
Discount rate Increase by 1.00% (16.25)% Increase by 1.00% (17.27)%
Fair value of plan assets as at the end of the year (a) 151.94 142.84
Salary increase Increase by 0.50% 1.55% Increase by 0.50% 1.69%
Present value of defined benefit obligation as at the end of the year (b) 127.04 127.79
Inflation Increase by 0.25% 3.29% Increase by 0.25% 3.46%
Net asset / (liability) recognized in the consolidated balance sheet (a - b) 24.90 15.05

Maturity profile of defined benefit obligation

Sensitivity analysis
` Million
As on As on Change in defined Change in defined
Particulars Change in assumption Change in assumption
March 31, 2021 March 31, 2020 Particulars benefit obligation benefit obligation
0-1 year 23.61 23.43 2020-21 2020-21 2019-20 2019-20
1-2 year 23.59 23.58 Discount rate Increase by 1.0% (9.50)% Increase by 1.0% (10.45)%
2-3 year 24.00 23.55 Discount rate Decrease by 1.0% 10.74% Decrease by 1.0% 11.93%
3-4 year 24.56 24.01 Inflation Increase by 0.25% 0.22% Increase by 0.25% 0.23%
4-5 year 26.02 24.60 Inflation Decrease by 0.25% (0.21)% Decrease by 0.25% (0.22)%
5-10 years 141.02 138.58
Total 262.80 257.75 Maturity profile of defined benefit obligation
` Million
2 Reifencom Gmbh Hannover Particulars
As on As on
March 31, 2021 March 31, 2020
Principal assumptions
0-1 year 0.20 0.17
` Million
1-2 year 0.22 0.19
As on As on
Particulars March 31, 2021 March 31, 2020 2-3 year 0.24 0.21
Rate (%) Rate (%) 3-4 year 0.26 0.23
Inflation 1.75 1.75 4-5 year 0.29 0.25
Mortality table Heubeck 2018G Heubeck 2018G More than 5 years 125.83 126.74
Retirement age (years) 65.00 65.00 Total 127.04 127.79
Discount rate 1.10 0.60

260 Apollo Tyres Ltd Annual Report 2020-21 261

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

iii Other long term employee benefits Currency wise net exposure of the Group
Long term compensated absences ` Million
Principal assumptions for long term compensated absences Currency
As on
Sensitivity +1% Sensitivity -1%
As on
Sensitivity +1% Sensitivity -1%
March 31, 2021 March 31, 2020
As on As on USD (12,963.53) (129.64) 129.64 (11,591.03) (115.91) 115.91
Particulars March 31, 2021 March 31, 2020
Rate (%) Rate (%)
EURO (415.71) (4.16) 4.16 (1,908.32) (19.08) 19.08
a) Discount rate 6.91 6.88 GBP (70.19) (0.70) 0.70 (44.53) (0.45) 0.45
b) Future salary increase* 6.00 6.00 Others 934.99 9.35 (9.35) 314.86 3.15 (3.15)
c) Retirement age (years) 58.00 58.00
d) Mortality table IALM (2012-2014) IALM (2012-2014) ii) Interest rate risk
e) Ages (withdrawal rate %) The Group is exposed to interest rate risk because entities in the Group borrows funds at both fixed and floating interest rates.
Up to 30 years 3.00 3.00 The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings. The use of
From 31 to 44 years 2.00 2.00 interest rate swaps are also entered into, especially to hedge the floating rate borrowings or to convert the foreign currency
Above 44 years 1.00 1.00 floating interest rates to the domestic currency floating interest rates.
* The estimates of future salary increase take into account inflation, seniority, promotion and other relevant factors.
I nterest on variable rate borrowings in the Company are converted at fixed rate since the company has hedged interest rate risk
fully and effectively with the hedging instruments.
12 FINANCIAL INSTRUMENTS
 he table below presents the impact on profit before tax for variable rate borrowings taken by subsidiary companies assuming
T
A) Capital risk management
a market interest rate shift of 0.25%:
The capital structure of the Group consists of debt, cash and cash equivalents and equity attributable to equity shareholders
which comprises issued share capital (including premium) and accumulated reserves disclosed in the consolidated statement
Sensitivity analysis
of changes in equity.

The Group’s capital management objective is to achieve an optimal weighted average cost of capital while continuing to ` Million

safeguard the Group’s ability to meet its liquidity requirements (including its commitments in respect of capital expenditure) As on Sensitivity Sensitivity As on Sensitivity Sensitivity
Particulars
March 31, 2021 +0.25% -0.25% March 31, 2020 +0.25% -0.25%
and repay loans as they fall due.
Non-current borrowings 12,613.04 (31.53) 31.53 14,544.43 (36.36) 36.36
 he Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
T (including current maturities)
of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend payment to Current borrowings 1,221.41 (3.05) 3.05 2,080.31 (5.20) 5.20
shareholders, return capital to shareholders or issue new shares. The Group monitors capital using a gearing ratio, which is debt
divided by total equity. The Group’s policy is to keep an optimum gearing ratio. The Group includes within debt, interest bearing b) Credit risk
loans and borrowings. Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. All
entities in the Group have their approved commercial policy based on which the credit risk is managed. The Group has adopted
` Million
a policy of only dealing with creditworthy customers.
As on As on
Particulars
March 31, 2021 March 31, 2020
 rade receivables comprise a widespread customer base and each entity undertakes on going credit evaluations of the financial
T
Borrowings (refer note B14 and B18) 51,115.26 65,798.85
condition of its customers, which may be based on the information supplied by the credit rating agencies, publicly available
Current maturities of non current borrowings (refer note B20) 13,221.75 1,840.05
financial information and its own trading records and trends. In many cases, an appropriate advance is taken from the customer. In
Sub-total (a) 64,337.01 67,638.90
other cases, the entities use various methods to limit the credit risk viz. credit insurance, bank guarantee, post dated cheques etc.
Equity (refer note B13) 635.10 572.05
Other equity 113,796.21 98,728.09 At the year end, the Group did not consider there to be any significant concentration of credit risk which had not been adequately
Sub-total (b) 114,431.31 99,300.14 provided for. The carrying amount of the financial assets recorded in the financial statements, grossed up for any allowances
Capital gearing ratio (a) / (b) 0.56 0.68 for losses, represents the maximum exposure to credit risk.

c) Price risk
B) Financial risk management
One of the subsidiary in the Group has executed commodity future contracts which are transacted in standardised amounts on
a) Market risk
regulated exchanges. The derivative financial instrument are measured at fair value through profit and loss and classified under
The Group’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates and changes in interest
Level 1 of the fair value measurement hierarchy.
rates. The Group enters into a variety of derivative financial instrument to manage its exposure to foreign currency and interest rates.
There have been no major changes to the Group’s exposure to market risk or the manner in which it manages and measures the
d) Liquidity risk
risk in recent past.
T he Group manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring
i) Currency risk forecasts and actual cash flows and by matching the maturity profiles of financial assets and liabilities for each entity.
The Group’s exposure arises mainly on import (of raw material and capital items) and export (of finished goods). Wherever The Group has established an appropriate liquidity risk management framework for each entity’s short term, medium term and
possible, the Group follows a policy of matching of import and export exposures (natural hedge) to reduce the net exposure in long term funding requirement.
any foreign currency. Whenever the natural hedge is not available or is not fully covering the foreign currency exposure of the
Group, management uses certain derivative instruments to manage its exposure to the foreign currency risk. Derivative counter
parties are limited to high credit quality financial institutions. The local management continuously monitors the entity’s exposure
to foreign currency risk as well as its use of derivative instruments as per the risk management policy of the respective entity.

262 Apollo Tyres Ltd Annual Report 2020-21 263

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

The below tables summarise the maturity profile of the Group’s financial assets and financial liabilities ii) Fair value of financial assets (other than derivative instruments) carried at fair value:
` Million
i) Non derivative financial assets
As on As on Fair value hierarchy
Particulars
` Million March 31, 2021 March 31, 2020 (Level 1, 2 or 3) *
As on March 31, 2021 As on March 31, 2020 Financial assets
Particulars
Less than 1 year 1 to 5 years 5 years and above Less than 1 year 1 to 5 years 5 years and above – Non current investments - quoted 1.20 0.42 1
Non-interest bearing 26,861.20 1,288.53 1,719.90 17,109.43 687.29 437.95 – Non current investments - unquoted 147.82 147.58 3
Fixed interest rate instruments 12,507.42 - - 811.81 - -
– Current investments - quoted 900.68 - 1
Total 1,049.70 148.00
ii) Non derivative financial liabilities
` Million
iii) Fair value of financial assets / liabilities (other than investment in joint venture and associates) that are not measured at fair
As on March 31, 2021 As on March 31, 2020
Particulars
Less than 1 year 1 to 5 years 5 years and above Less than 1 year 1 to 5 years 5 years and above
value
Non-interest bearing 38,721.07 - - 32,075.44 - - The management considers that the carrying amount of financial assets and financial liabilities recognised at amortised cost
Lease liability 1,930.68 4,627.90 2,720.52 1,987.21 4,921.68 3,300.75 in the consolidated balance sheet approximates their fair value.
Variable interest rate instruments 10,527.80 21,878.07 6,445.69 5,696.93 25,616.96 9,068.56 * Level 1 - Quoted price in an active market.
Fixed interest rate instruments 7,258.47 13,573.67 6,184.40 11,212.75 14,536.83 2,256.49
 Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly.
iii) Derivative assets / (liabilities)
` Million Level 3 - Unobservable inputs for the asset or liability.
As on March 31, 2021 As on March 31, 2020
Particulars
Less than 1 year 1 to 5 years 5 years and above Less than 1 year 1 to 5 years 5 years and above f) Details of outstanding contracts
Net settled:
Currency value Average Nominal value
– commodity future contract - - - 3.28 - - Currency pair Currency
(Million) exchange rate (Million)
Buy / Sell
– commodity future contract (6.26) - - (39.78) - -
As on March 31, 2021
– foreign currency forward (16.74) (30.72) - (1.58) (26.59) -
Foreign currency forward contracts
contracts, futures and options
USD / INR US Dollar 32.18 73.12 2,352.77 Buy
– foreign currency forward 40.55 3.47 - 53.25 76.82 -
USD / THB US Dollar 6.00 31.25 187.47 Buy
contracts, futures and options
USD / ZAR US Dollar 1.13 14.77 16.62 Buy
Gross settled:
EUR / INR Euro 21.06 85.83 1,807.77 Buy
– cross currency interest rate swaps - 972.14 - - 1,423.51 -
EUR / GBP British Pound 0.80 1.17 0.94 Sell
Total 17.55 944.89 - 15.17 1,473.74 -
EUR / SEK Swedish krona 25.25 0.10 2.46 Sell
EUR / PLN Polish zloty 12.50 0.22 2.69 Sell
e) The below tables summarise the fair value of the financial asset / (liabilities):
Futures and options
i) Fair value of derivative instruments carried at fair value
USD / INR US Dollar 39.00 73.12 2,851.49 Buy
` Million
Cross currency interest rate swaps
As on As on Fair value hierarchy
Particulars USD / INR US Dollar 160.13 73.12 11,707.90 Buy
March 31, 2021 March 31, 2020 (Level 1, 2 or 3) *
Derivative financial assets (a) Commodity future contract US Dollar 1.31 73.12 95.69 Buy / Sell
- Foreign currency forward contracts, futures and options 44.02 130.07 2 As on March 31, 2020
- Cross currency interest rate swaps 972.14 1,423.51 2 Foreign currency forward contracts
- Commodity future contract - 3.28 1 USD / INR US Dollar 25.81 75.58 1,950.65 Buy
Total 1,016.16 1,556.86 USD / THB US Dollar 6.00 32.84 197.03 Buy
Derivative financial liabilities (b) USD / ZAR US Dollar 2.25 17.89 40.26 Buy
- Foreign currency forward contracts, futures and options 47.46 28.17 2 EUR / INR Euro 30.99 83.14 2,576.16 Buy
- Commodity future contract 6.26 39.78 1 EUR / GBP British Pound 1.00 1.13 1.13 Sell
Total 53.72 67.95 Futures and options
Net derivative financial assets / (liabilities) (a- b) 962.44 1,488.91 USD / INR US dollar 19.00 75.58 1,436.02 Buy
Cross currency interest rate swaps
USD / INR US dollar 168.94 75.58 12,768.39 Buy
Commodity future contract US dollar 2.10 75.58 158.42 Buy / Sell
# For fair value of outstanding contracts, refer note C12 (e)(i).

264 Apollo Tyres Ltd Annual Report 2020-21 265

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

g) Impact of hedging activities (2) Disclosure of effects of hedge accounting on consolidated statement of profit and loss
` Million
(1) Disclosures of effects of hedge accounting on consolidated balance sheet:
Change in value of
hedging instrument Hedge Amount reclassified
Carrying amount Change in Type of hedge recognised in other ineffectiveness from cash flow Line item affected on reclassification
of hedging instruments value of hedged comprehensive recognised hedge reserve
Change in
(` Million) item used as income
fair value
Notional Hedge the basis for
Type of hedge and risks Maturity dates Strike price range of hedging
amount ratio recognising For the year ended March 31, 2021
instruments
Assets Liabilities hedge
(` Million)
effectiveness
Cash flow hedge
(` Million) Foreign exchange and interest rate risk (987.35) - (603.49) Finance Cost
As on March 31, 2021 (409.37) Gain on foreign currency
Cash flow hedge transactions and translations
Foreign exchange and
interest rate risk ` Million
(i) Cross Currency Swaps Change in value of
USD / INR USD 972.14 - April-2022 to 1:1 63.95 to 68.60 (987.35) 987.35 hedging instrument Hedge Amount reclassified
Type of hedge recognised in other ineffectiveness from cash flow Line item affected on reclassification
160.13 September-2024 comprehensive recognised hedge reserve
Fair value hedge income
Foreign exchange risk For the year ended March 31, 2020
Foreign currency forward Cash flow hedge
contracts Foreign exchange and interest rate risk 496.04 - (429.43) Finance Cost
EUR / INR EUR 0.54 (30.72) April-2021 to 1:1 86.36 to 89.16 (30.18) 30.18 1,089.18 Gain on foreign currency
21.06 May-2021 transactions and translations
USD / INR USD 2.93 - Apr-21 1:1 73.15 to 73.17 2.93 (2.93) Fair value hedge
16.18
Foreign exchange risk - 0.63 - Gain on foreign currency
(Carrying value of firm commitments for capital assets is ` 27.25 million and is recognised in other non-current assets as others) transactions and translations

Carrying amount Change in (3) Movement in cash flow hedging reserve

of hedging instruments value of hedged
Change in ` Million
(` Million) item used as
fair value
Notional Hedge the basis for Foreign currency and
Type of hedge and risks Maturity dates Strike price range of hedging Particulars
amount ratio recognising interest rate risk
instruments
Assets Liabilities hedge
(` Million) Cash flow hedge reserve
effectiveness
(` Million) Balance as on April 01, 2019 (7.41)
As on March 31, 2020 Add: Changes in fair value of cross currency swaps 496.04
Cash flow hedge Less: Amount reclassified to consolidated statement of profit and loss (659.75)
Foreign exchange and Less: Deferred tax relating to above (net) 57.21
interest rate risk Balance as on March 31, 2020 (113.91)
(i) Cross currency swaps Add: Changes in fair value of cross currency swaps (987.35)
USD / INR USD 1,423.51 - April-2022 to 1:1 69.17 to 75.24 496.04 (496.04) Less: Amount reclassified to consolidated statement of profit and loss 1,012.86
168.94 September-2024
Less: Deferred tax relating to above (net) (8.91)
Balance as on March 31, 2021 (97.31)
Fair flow hedge
Foreign exchange risk
13 STATUTORY AUDITOR’S REMUNERATION
(i) Foreign currency
forward contracts
` Million
EUR / INR EUR 37.26 (26.59) April-2020 to 1:1 82.20 to 88.90 10.67 (10.67)
Year ended Year ended
30.99 June-2020 Particulars
March 31, 2021 March 31, 2020
USD / INR USD 39.56 - April-2020 to 1:1 72.25 to 75.04 39.56 (39.56) For audit and quarterly reviews 75.12 61.18
20.56 June-2020
For taxation matters 0.79 1.00
[Carrying value of firm commitments for capital assets is ` 50.22 million and is recognised in other non-current liabilities as others] For other services 2.97 4.79
Total 78.88 66.97

266 Apollo Tyres Ltd Annual Report 2020-21 267

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

14 RESEARCH AND DEVELOPMENT EXPENDITURE 19 EXPENDITURE TOWARDS CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
` Million
In accordance with the provisions of section 135 of the Act, the Board of Directors of the Company had constituted a CSR
Year ended Year ended
Particulars committee The details for CSR activities are as follows:
March 31, 2021 March 31, 2020
(A) Revenue expenditure
` Million
Materials 148.38 175.50
Year ended Year ended
Particulars
Employee benefits expense 1,449.12 1,264.27 March 31, 2021 March 31, 2020
Travelling, conveyance and vehicle 50.52 153.58 i) Gross amount required to be spent by the Company during the year 153.19 183.70
Others 707.60 920.78 ii) Amount spent during the year on the following:
Total 2,355.62 2,514.13 (a) Construction / acquisition of any asset - -
(B) Capital expenditure 893.28 1,368.11 (b) On purposes other than (a) above 129.91 183.70
Total (A + B) 3,248.90 3,882.24 iii) Amount unspent during the year and deposited in a scheduled bank 23.28 -
Total 153.19 183.70
15 CONTINGENT LIABILITIES
` Million 20 FOLLOWING SUBSIDIARIES, JOINT VENTURE AND ASSOCIATES HAVE BEEN CONSIDERED IN THE PREPARATION OF
Particulars
As on As on THE CONSOLIDATED FINANCIAL STATEMENTS:
March 31, 2021 March 31, 2020
Sales tax 118.36 417.30 % of holding and voting power
either directly or indirectly
Income tax # 1,470.70 708.90 Country of through subsidiary
S.no. Name of the entity Relationship Ownership held by Remarks
Claims against the Group not acknowledged as debt incorporation
As on As on
- Employee related 170.08 172.88 March 31, 2021 March 31, 2020
- Others 28.60 29.30 1 Apollo Tyres Centre of Subsidiary India Apollo Tyres Ltd. 100% - Note (a)
Excise duty and service tax * 641.70 626.23 Excellence Limited
2 Apollo Tyres (Greenfield) B.V. Subsidiary Netherlands Apollo Tyres Ltd. 100% 100%
# Excludes amount of ` 1,039.46 Million (` 1,039.46 Million) in appeals which have been decided by Appellate authorities in the Company’s favour 3 Apollo Tyres Cooperatief U.A. Subsidiary Netherlands Apollo Tyres Ltd. 100% 100%
but on which the department has gone for further appeal, which in the opinion of the Company, is not sustainable and the probability of cash outflow (Apollo Coop) and Apollo Tyres
is considered remote. (Greenfield) B.V.
* Show-cause notices received from various Government Agencies pending formal demand notices have not been considered as contingent liabilities. 4 Apollo (South Africa) Holdings Subsidiary South Africa Apollo Coop 100% 100%
In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the ground that there are fair chances (Pty) Ltd (ASHPL)
of successful outcome of appeals.
5 Apollo Tyres Africa (Pty) Ltd Subsidiary South Africa ASHPL 100% 100%
6 Apollo Tyres (Thailand) Limited Subsidiary Thailand Apollo Coop 100% 100%
16 CAPITAL COMMITMENTS 7 Apollo Tyres (Middle East) FZE Subsidiary Dubai Apollo Coop 100% 100%
` Million 8 Apollo Tyres Holdings Subsidiary Singapore Apollo Coop 100% 100%
As on As on (Singapore) Pte Ltd (ATHS)
Particulars
March 31, 2021 March 31, 2020 9 ATL Singapore Pte Ltd. Subsidiary Singapore ATHS 100% 100%
Estimated amount of contracts remaining to be executed on capital account and not provided for 6,972.51 19,981.97 10 Apollo Tyres (Malaysia) SDN Subsidiary Malaysia ATHS 100% 100%
BHD
17 The Company conducts international transactions with associated enterprises. For the current year, the management maintained 11 Apollo Tyres (UK) Pvt Ltd Subsidiary United Kingdom Apollo Coop 100% 100%
necessary documents as prescribed by the Income Tax Act, 1961 to establish that these international transactions are at arm’s (ATUK)
length and the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax 12 Apollo Tyres (London) Pvt Ltd Subsidiary United Kingdom ATUK 100% 100%
expense and that of provision for taxation. 13 Apollo Tyres Global R&D B.V. Subsidiary Netherlands Apollo Coop 100% 100%
14 Apollo Tyres (Germany) GmbH Subsidiary Germany Apollo Coop 100% 100%
18 DISCLOSURES REQUIRED UNDER SECTION 22 OF THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT 15 Apollo Tyres AG Subsidiary Switzerland Apollo Coop 100% 100%
ACT, 2006 16 Apollo Tyres Do (Brasil) Ltda Subsidiary Brazil Apollo Coop and 100% 100%
ATBV
` Million
17 Apollo Tyres B.V. (ATBV) Subsidiary Netherlands Apollo Coop 100% 100%
As on As on
Particulars
March 31, 2021 March 31, 2020 18 Apollo Tyres (Hungary) Kft. Subsidiary Hungary ATBV 100% 100%
(i) Principal amount remaining unpaid to any supplier as at the end of the accounting year 815.31 247.45 (ATH Kft)
(ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year 10.58 10.58 19 Apollo Vredestein B.V. (AVBV) Subsidiary Netherlands ATBV 100% 100%
(iii) The amount of interest paid along with the amounts of the payment made to the supplier - - 20 Apollo Vredestein GmbH (AV Subsidiary Germany AVBV 100% 100%
beyond the appointed day GmbH)
(iv) The amount of interest due and payable for the year - - 21 Apollo Vredestein Nordic A.B. Subsidiary Sweden AVBV 100% 100%
(v) The amount of interest accrued and remaining unpaid at the end of the accounting year 10.58 10.58
(vi) The amount of further interest due and payable even in the succeeding year, until such date 10.58 10.58
when the interest dues as above are actually paid

 ues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of
D
information collected by the Management. This has been relied upon by the auditors.

268 Apollo Tyres Ltd Annual Report 2020-21 269

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

% of holding and voting power

either directly or indirectly
21 DISCLOSURE OF RELATED PARTY TRANSACTIONS IN ACCORDANCE WITH IND AS 24 RELATED PARTY
Country of through subsidiary DISCLOSURES
S.no. Name of the entity Relationship Ownership held by Remarks
incorporation
As on As on
March 31, 2021 March 31, 2020 i) Name of the related parties
22 Apollo Vredestein (UK) Limited Subsidiary United Kingdom AVBV and Finlo 100% 100%
Particulars Year ended March 31, 2021 Year ended March 31, 2020
B.V.
Companies in which directors Apollo International Limited Apollo International Limited
23 Apollo Vredestein France SAS Subsidiary France AVBV and Finlo 100% 100%
are interested Apollo International Trading LLC, Middle East Apollo International Trading LLC, Middle East
B.V.
24 Apollo Vredestein Belux Subsidiary Belgium AVBV and Finlo 100% 100% Apollo International FZC Apollo International FZC
B.V. Landmark Farms & Housing Pvt. Ltd. Landmark Farms & Housing Pvt. Ltd.
25 Apollo Vredestein Gesellschaft Subsidiary Austria AVBV 100% 100% Sunlife Tradelinks (P) Ltd. Sunlife Tradelinks (P) Ltd.
m.b.H. Classic Industries and Exports Limited (formerly Classic Industries and Exports Limited
26 Apollo Vredestein Schweiz AG Subsidiary Switzerland AVBV 100% 100% known as Classic Auto Tubes Ltd.) (formerly known as Classic Auto Tubes Ltd.)
27 Apollo Vredestein Iberica SAU Subsidiary Spain AVBV 100% 100% PTL Enterprises Ltd. PTL Enterprises Ltd.
28 Apollo Vredestein Tires Inc. Subsidiary USA Apollo Coop 100% 100% Artemis Medicare Services Ltd. Artemis Medicare Services Ltd.
29 Apollo Vredestein Kft (AV Kft) Subsidiary Hungary AVBV 100% 100% Shardul Amarchand Mangaldas & Co. Shardul Amarchand Mangaldas & Co.
30 S.C. Vredestein R.O. Srl Subsidiary Romania AV Kft - - Note (c) Regent Properties Regent Properties
31 Apollo Vredestein Opony Polska Subsidiary Poland AVBV and AV 100% 100% Milers Global Pvt. Ltd. Milers Global Pvt. Ltd.
Sp. Z.o.o. GmbH Associates N.A. Pressurerite (Pty) Ltd.
32 Vredestein Consulting B.V. Subsidiary Netherlands AVBV 100% 100% KT Telematic Solutions Private Limited KT Telematic Solutions Private Limited
33 Finlo B.V. Subsidiary Netherlands AVBV 100% 100% Joint venture Pan Aridus LLC Pan Aridus LLC
34 Vredestein Marketing B.V. Subsidiary Netherlands AVBV - 100% Note (b) Key management personnel Mr. Onkar Kanwar Mr. Onkar Kanwar
35 Reifencom GmbH, Hannover Subsidiary Germany Apollo Coop 100% 100% Mr. Neeraj Kanwar Mr. Neeraj Kanwar
36 Reifencom Tyre (Qingdao) Co., Subsidiary China Reifencom 100% 100% Mr. Satish Sharma Mr. Satish Sharma
Ltd. GmbH, Hannover Mr. Akshay Chudasama Mr. Akshay Chudasama
37 Saturn F1 Pvt Ltd Subsidiary United Kingdom Apollo Coop 100% 100% Gen. Bikram Singh (Retd.) Gen. Bikram Singh (Retd.)
38 Rubber Research LLC Subsidiary USA Apollo Coop - - Note (c) Mr. Francesco Gori Mr. Francesco Gori
39 Pan Aridus LLC Joint USA ATHS 50.00% 50.00% Note (d) N.A. Mr. Nimesh N. Kampani **
Venture Ms. Pallavi Shroff Ms. Pallavi Shroff
40 Pressurerite (Pty) Limited Associate South Africa ASHPL - - Note (e) Mr. Robert Steinmetz Mr. Robert Steinmetz
41 KT Telematic Solutions Private Associate India Apollo Tyres Ltd. 25.00% 25.00% Note (f) Mr. Sunam Sarkar Mr. Sunam Sarkar
Limited N.A. Dr. S. Narayan **
Notes Mr. Vikram S. Mehta Mr. Vikram S. Mehta
a) Incorporated during the year. Mr. Vinod Rai Mr. Vinod Rai
Ms. Anjali Bansal Ms. Anjali Bansal
b) Liquidated during the year.
Mr Francesco Cripino* N.A.
c) Liquidated during the previous year.
Mr Vishal Kashyap Mahadevia* N.A.
d) T he investment in Pan Aridus LLC, has been fully impaired in the prior years and the Group discontinued recognizing further losses in accordance
with Ind AS 28 Investments in Associates and Joint Ventures. The Group does not have any further obligations to satisfy with regard to this Note: Related parties and their relationships are as identified by the management and relied upon by the auditors. All transactions are conducted
joint venture. in the ordinary course of business and at arm’s length.
e) The investment in Pressurerite (Pty) Ltd, an associate of ASHPL, has been fully impaired in the prior years and the Group discontinued recognizing
further losses in accordance with Ind AS 28 Investments in Associates and Joint Ventures. The Group does not have any further obligations to * Appointed during the year
satisfy with regard to this associate. ** Ceased to be director during the previous year
Apollo (South Africa) Holdings (Pty) Ltd has executed a sale of shares agreement with Tacoma Foods (Pty) Ltd to sell its entire stake in Pressurerite
(Pty) Limited effective from May 31, 2019. Pressurerite (Pty) Limited was not an associate of Apollo (South Africa) Holdings (Pty) Ltd as on ii) Transactions and balances with related parties
March 31, 2020.
a) Companies in which directors are interested
f) As on March 31, 2021, the Company has invested ` 45.01 million in the said associate.
` Million

Particulars FY 2020-21 FY 2019-20

Description of transactions:
Sales: finished goods
Apollo International Trading LLC, Middle East - 2.94
Apollo International Limited - 13.39
Apollo International FZC 378.02 660.04
378.02 676.37
Sales: raw materials
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 404.53 390.72
Cross charge of management & other expenses received:
PTL Enterprises Ltd. 0.85 0.85
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 1.69 1.69
Artemis Medicare Services Ltd. 0.60 -

270 Apollo Tyres Ltd Annual Report 2020-21 271

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

` Million
b) Key management personnel (KMP)
Particulars FY 2020-21 FY 2019-20 ` Million

3.14 2.54 Particulars FY 2020-21 FY 2019-20

Rent received:
Managerial remuneration:
PTL Enterprises Ltd. 0.39 0.39
Mr. Onkar Kanwar 420.82 232.55
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 1.06 1.06
Mr. Neeraj Kanwar 368.21 203.48
1.45 1.45
Mr. Satish Sharma 68.52 58.14
Reimbursement of expenses received: 857.55 494.17
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 10.61 10.04
Sitting fees:
Freight & Insurance recovered: Non-executive directors 5.77 8.05
Apollo International FZC - 0.04
Commission:
Purchases of stock in trade Non-executive directors 45.00 40.00
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 2,946.00 3,171.61
Certain KMPs also participate in post employment benefits plans provided by the Company. The amount in respect of these towards the KMPs
Purchase of assets:
can not be segregated as these are based on actuarial valuation for all employees of the Company.
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 1,344.05 1,326.08
Artemis Medicare Services Ltd. - 59.63 * This represents undiscounted value.
1,344.05 1,385.71
22 SEGMENTAL REPORTING
Legal and professional charges paid:
Shardul Amarchand Mangaldas & Co. 9.13 3.00 The Group’s operations comprise only one business segment – Automobile Tyres, Automobile Tubes & Automobile Flaps in the context
Reimbursement of expenses paid: of reporting business / geographical segment as required under Ind AS 108 - Operating Segments.
PTL Enterprises Ltd. 653.33 645.64
Based on the “management approach” as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker evaluates
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 4.66 7.80
the Company’s performance and allocates resources based on an analysis of various performance indicators by business segment.
657.99 653.44
Accordingly, information has been presented along these business segments which have been defined based on the geographical
Payment for services received:
Artemis Medicare Services Ltd. 22.54 20.78
presence of various entities:
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 7.80 9.91 a) APMEA (Asia Pacific, Middle East and Africa)
30.34 30.69
Lease rent paid: b) Europe
PTL Enterprises Ltd. 600.00 600.00 c) Others
Rent paid:
Sunlife Tradelinks (P) Ltd. 30.99 30.99 APMEA segment includes manufacturing and sales operation through India and include entities in UAE, Thailand, Malaysia and
Regent Properties 23.76 23.76 South Africa. Europe segment includes manufacturing and sales operation through the entities in Europe. Others segment includes
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 0.12 0.12
sales operations in Americas and all other corporate entities.
54.87 54.87
Mixing charges paid: The accounting principles used in the preparation of the consolidated financial statements are consistently applied in individual
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 190.45 143.44 segment to prepare segment reporting.
Amount outstanding:
Other non-current financial assets*:
PTL Enterprises Ltd. 600.00 600.00
Sunlife Tradelinks (P) Ltd. 5.86 5.86
Regent Properties 5.40 5.40
611.26 611.26
Other non-current assets:
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 152.44 666.12
Other current assets:
PTL Enterprises Ltd. 64.97 65.79
Apollo International Limited - 3.02
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 213.60 90.04
278.57 158.85
Trade payable:
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 410.61 415.63
Artemis Medicare Services Ltd. 1.69 4.90
412.30 420.53
Other current financial liabilities:
Classic Industries and Exports Limited (formerly known as Classic Auto Tubes Ltd.) 419.85 190.85
Apollo International Limited - 0.52
Apollo International FZC 16.11 56.23
435.96 247.60

272 Apollo Tyres Ltd Annual Report 2020-21 273

 ` Million
APMEA Europe Others Eliminations Total

274
Particulars Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
1. REVENUE
Total revenue 119,187.49 112,554.86 56,754.17 52,739.92 25,276.02 25,780.88 (27,247.69) (27,573.71) 173,969.99 163,501.95
Inter segment revenue (2,222.36) (1,944.40) (1,319.16) (1,085.20) (23,706.17) (24,544.11) 27,247.69 27,573.71 - -
External revenue 116,965.13 110,610.46 55,435.01 51,654.72 1,569.85 1,236.77 - - 173,969.99 163,501.95

2. RESULT
Segment result 14,694.81 8,000.10 649.31 (571.37) 774.84 813.98 - - 16,118.96 8,242.71
Interest expense (3,804.17) (2,261.97) (523.93) (437.31) (101.53) (109.05) - - (4,429.63) (2,808.33)
Share of profit / (loss) in 0.27 (0.01) - - - - - - 0.27 (0.01)
associates / joint venture
Exceptional items (121.42) - (5,956.02) - - - - - (6,077.44) -
Income taxes (3,324.93) (765.04) 1,366.99 233.85 (152.09) (139.23) - - (2,110.03) (670.42)
Net profit after tax 7,444.56 4,973.08 (4,463.65) (774.83) 521.22 565.70 - - 3,502.13 4,763.95

3. OTHER INFORMATION
Depreciation and 7,197.09 6,248.48 5,486.07 4,704.80 466.36 427.90 - - 13,149.52 11,381.18
amortisation

` Million
APMEA Europe Others Eliminations Total
Particulars As on As on As on As on As on As on As on As on As on As on
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Factsheet
Corporate

Segment assets 169,391.24 142,101.53 85,019.88 86,723.27 11,764.69 11,006.68 (5,542.05) (7,331.61) 260,633.76 232,499.87
Segment liabilities 97,856.52 88,596.59 47,506.59 45,733.30 6,233.51 6,047.10 (5,394.17) (7,177.26) 146,202.45 133,199.73
Capital employed 71,534.72 53,504.94 37,513.29 40,989.97 5,531.18 4,959.58 (147.88) (154.35) 114,431.31 99,300.14
Non-current assets* 114,994.30 109,343.66 58,024.49 60,718.45 2,276.79 2,386.76 - - 175,295.58 172,448.87
*Non-current assets consists of property, plant and equipment, capital work-in-progress, capital advances, right of use assets and other intangible assets.

Information about
major customers None of the individual customer accounted for more than 10% of the consolidated revenue for the years ended March 31, 2021 and March 31, 2020.
From our
Leadership

Apollo Tyres
Value Creation at

Apollo Tyres Ltd

23 ADDITIONAL INFORMATION, AS REQUIRED UNDER SCHEDULE III TO THE ACT
Share in other Share in total
Share in profit or (loss)
Net assets comprehensive income comprehensive income or (loss)
for the year ended
as on March 31, 2021 for the year ended for the year ended
March 31, 2021
March 31, 2021 March 31, 2021
S.No Name of the entity
Our ESG

As a % of As a % of
Performance

As a % of As a % of
consolidated other consolidated total
consolidated net ` Million consolidated ` Million ` Million ` Million
comprehensive comprehensive
assets profit or (loss)
income income or (loss)

Annual Report 2020-21

Company
1 Apollo Tyres Limited 82.78 94,725.61 206.39 7,228.21 5.55 61.93 157.89 7,290.14
Indian subsidiary
2 Apollo Tyres Centre of Excellence 0.00 0.93 (0.00) (0.07) - - (0.00) (0.07)
Limited
Foreign subsidiaries
Management

3 Apollo Tyres (Greenfield) B.V. 0.02 24.58 (0.00) (0.10) - - (0.00) (0.10)
Discussion & Analysis

4 Apollo Tyres Cooperatief U.A. & 141.18 161,557.69 (224.77) (7,871.76) 6.54 72.88 (168.91) (7,798.88)
Others (refer Note 1 below)
Indian associate
5 KT Telematic Solutions Private 0.01 13.62 0.01 0.27 - - 0.01 0.27
Limited
6 Add / (Less): Effect of IND AS (123.99) (141,891.12) 118.37 4,145.58 87.91 980.23 111.01 5,125.81
Reports

adjustments / eliminations arising

Statutory

out of consolidation
Total 100.00 114,431.31 100.00 3,502.13 100.00 1,115.04 100.00 4,617.17
Financial
Statements

275
 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

Note 1 Apollo Tyres Cooperatief U.A. and Others: 24 EVENTS AFTER THE BALANCE SHEET DATE
` Million
The Board of Directors have recommended a final dividend of ` 3.50 (Nil) per share amounting to ` 2,222.85 Million (Nil) on
Share in other Share in total
Share in profit Equity Shares of ` 1/- each for the year, subject to approval from Shareholders.
comprehensive comprehensive
Net assets as on or (loss) for the
S.No Name of the entity income for the income or (loss) for
March 31, 2021 year ended
year ended the year ended
March 31, 2021
March 31, 2021 March 31, 2021 25 INFORMATION ON DETAILS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE ACT READ
1 Apollo Tyres Cooperatief U.A. (Apollo Coop) 62,333.82 303.59 - 303.59 WITH COMPANIES (MEETINGS OF BOARD AND ITS POWERS) RULES, 2014
2 Apollo (South Africa) Holdings (Pty) Ltd (ASHPL) 324.54 0.14 - 0.14
i) Details of investments made are given in note B2 and B3.*
3 Apollo Tyres Africa (Pty) Ltd 104.74 4.40 - 4.40
4 Apollo Tyres (Thailand) Limited 288.38 53.37 - 53.37 ii) There are no loans / guarantees given by the Company (other than on behalf of wholly owned subsidiary) in accordance
5 Apollo Tyres (Middle East) FZE 380.10 173.27 - 173.27 with Section 186 of the Act read with rules issued thereunder.
6 Apollo Tyres Holdings (Singapore) Pte Ltd (ATHS) 2,216.11 508.47 - 508.47 * All transactions are in the ordinary course of business
7 ATL Singapore Pte Ltd. 274.01 25.48 - 25.48
8 Apollo Tyres (Malaysia) SDN BHD 32.16 7.27 - 7.27
26 RECONCILIATION OF LIABILITIES FROM FINANCING ACTIVITIES
9 Apollo Tyres (UK) Pvt Ltd (ATUK) 1,897.33 28.18 - 28.18
10 Apollo Tyres (London) Pvt Ltd 1,055.86 - - -  ffective April 1, 2017, the Group adopted the amendment to Ind AS-7, which require the entities to provide disclosures that
E
11 Apollo Tyres Global R&D B.V. 885.34 142.90 - 142.90 enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes
12 Apollo Tyres (Germany) GmbH 76.67 17.65 - 17.65 arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances
13 Apollo Tyres AG 333.10 29.44 - 29.44 in the consolidated balance sheet for liabilities arising from financing activities, to meet the disclosure requirements. The required
14 Apollo Tyres Do (Brasil) Ltda (5.30) (1.01) - (1.01) disclosure is presented below:
15 Apollo Tyres B.V. (ATBV) 39,217.92 (4,539.12) - (4,539.12)
` Million
16 Apollo Tyres (Hungary) Kft. (ATH Kft) 32,636.04 1,422.10 - 1,422.10
Non cash changes
17 Apollo Vredestein B.V. (AVBV) 14,637.57 (5,247.43) - (5,247.43)
As on Foreign As on
18 Apollo Vredestein GmbH (AV GmbH) 2,931.64 (749.18) 66.02 (683.16) Particulars Cash flows Interest
April 01, 2020 exchange New leases Others March 31, 2021
expense
19 Apollo Vredestein Nordic A.B. 73.72 (30.42) - (30.42) movement*
20 Apollo Vredestein (UK) Limited 232.26 0.09 - 0.09 Non-current borrowings 53,318.89 7,756.55 193.58 - - 34.56 61,303.58
21 Apollo Vredestein France SAS 145.56 5.47 - 5.47 (including current maturities)
22 Apollo Vredestein Belux 67.90 (1.45) - (1.45) Current borrowings 14,320.01 (11,226.62) (64.12) - - 4.16 3,033.43
23 Apollo Vredestein Gesellschaft m.b.H. (17.03) 3.97 - 3.97 Lease liability 10,209.64 (2,649.42) 356.00 505.77 1,254.13 (397.02) 9,279.10
24 Apollo Vredestein Schweiz AG 253.68 4.93 - 4.93
` Million
25 Apollo Vredestein Iberica SAU 443.02 (0.05) - (0.05)
Non cash changes
26 Apollo Vredestein Tires Inc. (27.60) (88.80) - (88.80)
As on Foreign As on
27 Apollo Vredestein Kft (AV Kft) 14.58 (5.03) - (5.03) Particulars Cash flows Interest
April 01, 2019 exchange New leases Others March 31, 2020
expense
28 Apollo Vredestein Opony Polska Sp. Z.o.o. 161.76 6.33 - 6.33 movement*
29 Vredestein Consulting B.V. 271.73 (2.41) - (2.41) Non-current borrowings 45,560.86 5,396.04 2,403.78 - - (41.79) 53,318.89
30 Finlo B.V. (19.31) - - - (including current maturities)
31 Vredestein Marketing B.V. - - - - Current borrowings 5,546.72 8,585.03 188.26 - - - 14,320.01
32 Reifencom GmbH, Hannover 281.12 74.12 6.86 80.98 Lease liability 10,966.78 (2,595.62) 280.21 555.28 1,073.44 (70.45) 10,209.64
33 Reifencom Tyre (Qingdao) Co., Ltd. 0.12 0.65 - 0.65
* Foreign exchange movement for the Company is covered by derivative instrument and includes currency translation impact for subsidiaries arising
34 Saturn F1 Pvt Ltd 56.15 (18.68) - (18.68) out of consolidation.
Total 161,557.69 (7,871.76) 72.88 (7,798.88)

27 Effective April 01, 2018, the Group has adopted Ind AS 115 “ Revenue from Contracts with Customers” using the cumulative
effect. The application of Ind AS 115 did not have any significant impact on recognition and measurement of revenue in the
consolidated financial statements of the Group.

The Group’s revenue disaggregated by geographical markets has been disclosed in note C22.

Reconciling the amount of revenue recognised in the consolidated statement of profit and loss with the contracted price
` Million
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020
Revenue as per contracted price (as invoiced) 179,482.47 168,700.57
Reduction towards variable consideration components (9,936.40) (7,735.66)
Revenue from contract with customers 169,546.07 160,964.91

The Group has applied the practical expedient and has not disclosed the transaction price allocated to the remaining performance
obligations as the Group does not have any open contract for which the expected duration is more than one year as at the reporting
period.

276 Apollo Tyres Ltd Annual Report 2020-21 277

 Corporate From our Value Creation at Our ESG Management Statutory Financial
Factsheet Leadership Apollo Tyres Performance Discussion & Analysis Reports Statements

28 On February 26, 2020, the Company executed an agreement with Emerald Sage Investment Ltd (an affiliate of Warburg Pincus

(0.07)

(0.10)

(1.01)

(4,539.12)

(5,247.43)
` Million

Profit after
tax

303.59

0.14

4.40

53.37

173.27

508.47

25.48
7.27

28.18

142.90

17.65

29.44

1,422.10
LLC) to issue 108,000,000 6.34% Compulsorily Convertible Preference Shares (CCPS) having a face value of ` 100 each, at par, for
cash, by way of preferential allotment on a private placement basis. The Members of the Company approved the issue of CCPS
(Tranche 1) through its Extraordinary General Meeting held on March 23, 2020 and issue of CCPS (Tranche 2) through Postal

(0.02)

(43.12)

(104.51)
Tax expense
Year ended March 31, 2021

0.05

1.79

102.78

-
0.01

29.75

51.01

7.61

3.60
-

12.86

1,361.59
Ballot held on September 24, 2020. The Company had allotted 54,000,000 CCPS (Tranche 1) and 54,000,000 CCPS (Tranche 2),
for cash, for an aggregate amount of ` 10,800 Million on April 22, 2020 and October 7, 2020 respectively. These CCPS have been
accounted for as compound instruments in the financial statements. On December 5, 2020, one of the conditions for conversion

(3,885.84)
was met and accordingly the Company has issued 63,050,966 equity shares having a face value of ` 1 per share. After issue of

(0.09)

(0.10)

(1.01)

(4,643.63)
Profit
before tax

260.47

0.19

4.40

55.16

173.27

611.25

25.48
7.28

57.93

193.91

25.26

33.04

1,434.96
the aforesaid equity shares, the paid-up equity share capital of the Company has increased by ` 63.05 Million and securities
premium account by ` 10,450.95 Million, net of share issue expenses.

29 In order to improve the performance of its subsidiary company, Apollo Vredestein B.V. (“AVBV”) located in Enschede, the

Turnover
(including
other
income)

23,930.94
-

0.49

432.95

0.29

1,277.82

2,058.41

2,896.98

29.65
395.30

1,354.97

2,573.49

276.87

167.32
-

-
13,839.61

38,581.96
Netherlands, the management of AVBV had initiated certain steps which included a plan (“the Plan”) to change the product
/ sourcing mix and its resultant impact on the current work force of AVBV. During the quarter ended September 30, 2020, the
management of AVBV had reached an agreement with the Works Council of AVBV on the Plan and necessary steps were being

73.75

-
-

-
-

-
-

-
taken to implement the Plan.

Investment
(other
than in
subsidiary)
 uring the year ended March 31, 2021, the management of AVBV has completed the implementation of the Plan and recorded
D
one-time expense amounting to ` 5,956.02 Million (Nil) as an exceptional item. The said amount includes expense related to
employee benefits and write off / impairment of certain assets (Property, plant & equipment and inventories) amounting to

0.09

0.51

6,206.61

796.42

523.95

940.05

6,734.00

6.50
143.09

263.02

2.56

498.84

96.05

8.64
21.56

12,633.75
6,299.19

19,396.99
Total
liabilities
` 4,560.54 Million (Nil) and ` 1,395.48 Million (Nil) respectively.

Statement containing salient features of the financial statement of subsidiaries / associate / joint venture

The Company and other subsidiaries in APMEA had carried out an employee re-organisation exercise for its employees. The

As on March 31, 2021

amount paid to the employees who opted for this scheme aggregated to ` 121.42 Million (Nil) for the year ended March 31,

36,064.71 68,540.43

14,633.88 34,034.56
1.02

25.09

324.54

901.16

812.33

1,320.15

8,950.11

280.51
175.25

2,160.35

1,058.42

1,384.18

172.72

341.74
16.26

51,851.67
38,935.23
Total assets
2021, has been disclosed as an exceptional item.

(pursuant to first proviso to sub section (3) of sec. 129 read with rule 5 of Companies (Accounts) Rules, 2014)
30 EARNINGS PER SHARE (EPS) – THE NUMERATOR AND DENOMINATOR USED TO CALCULATE BASIC AND DILUTED

(0.07)

(1,875.45)

(91.73)
(82.24)

(15.56)
21.49

324.54

54.31

340.27

1,257.12

1,895.46

1,055.76

885.34

74.52

42.61

39,216.38
32,611.74
Reserves &
surplus
EARNINGS PER SHARE:
` Million
Year ended Year ended
Particulars
March 31, 2021 March 31, 2020

1.00

3.09

26,269.11

1,980.19

234.07

39.83

958.99

365.74
114.40

1.87

0.10

2.15

290.49
10.26

1.54
24.30

3.69
Share
capital
Basic and diluted earnings per share
Profit attributable to the equity shareholders used as numerator (` Million) - (A) 3,502.13 4,763.95
The weighted average number of equity shares outstanding during the year used as denominator - (B) 616,962,997 572,049,980
Basic / Diluted earnings per share (`) – (A) / (B) (Face value of ` 1 each) 5.68 8.33

Exchange
rate as on
31.03.2021

1.00

85.80

85.80

4.95

4.95

2.34

19.91

73.15

73.15
17.64

100.81

100.81

85.80

85.80

77.49
12.99

85.80
0.24

85.80
Reporting
For and on behalf of the Board of Directors

currency

EURO

EURO

EURO

EURO

EURO

EURO
MYR

HUF
AED

CHF
USD

USD

GBP

GBP
THB
ZAR

ZAR

BRL
INR
October 10, 2020

January 22, 2013

January 2, 2011

January 2, 2013
March 15, 2016

March 16, 2012

March 2, 2012
May 11, 2017

May 15, 2009

July 29, 2013
ONKAR KANWAR NEERAJ KANWAR VINOD RAI

June 4, 2014

June 4, 2014
May 1, 2009

July 4, 2007
was acquired /
Date on which
Part A: Subsidiaries

September

September

September
incorporated
Chairman & Managing Director Vice Chairman & Managing Director Director

November
December
29, 2006

12, 2014

11, 2015

15, 2011
subsidiary

8, 2010
DIN 00058921 DIN 00058951 DIN 00041867

GAURAV KUMAR SEEMA THAPAR

London Chief Financial Officer Company Secretary

Holdings (Pty) Ltd (ASHPL)

(Singapore) Pte Ltd (ATHS)

Apollo Tyres (Hungary) Kft.

May 12, 2021 Membership No - FCS 6690

Apollo Tyres Cooperatief

Apollo Tyres B.V. (ATBV)

Apollo Tyres (Germany)
Apollo Tyres (Malaysia)

Apollo Tyres Do (Brasil)

Apollo Tyres (Thailand)

ATL Singapore Pte Ltd.

Apollo Tyres Centre of

Apollo Vredestein B.V.

Apollo Tyres Holdings
Apollo (South Africa)

Apollo Tyres Global

S.No Name of the Subsidiary

Apollo Tyres Africa

U.A. (Apollo Coop)
Excellence Limited

(Middle East) FZE

Apollo Tyres (UK)

(London) Pvt Ltd

(Greenfield) B.V.

Apollo Tyres AG
Pvt Ltd (ATUK)
Apollo Tyres

Apollo Tyres

Apollo Tyres

(ATH Kft)
SDN BHD
FORM AOC 1

(Pty) Ltd

R&D B.V.
Limited

(AVBV)
GmbH

Ltda
10

11

12

13

14

15
16

17
18

19
1

9
278 Apollo Tyres Ltd Annual Report 2020-21 279
 ` Million
As on March 31, 2021 Year ended March 31, 2021
Date on which

280
Exchange Investment Turnover
subsidiary Reporting
S.No Name of the Subsidiary rate as on Share Reserves & Total (other (including Profit Profit after
was acquired / currency Total assets Tax expense
31.03.2021 capital surplus liabilities than in other before tax tax
incorporated
subsidiary) income)
20 Apollo Vredestein GmbH May 15, 2009 EURO 85.80 43.93 2,887.71 4,275.31 1,343.67 - 10,517.95 (1,052.82) (303.64) (749.18)
(AV GmbH)
21 Apollo Vredestein Nordic May 15, 2009 SEK 8.38 7.96 65.76 511.29 437.57 - 1,042.00 (30.54) (0.12) (30.42)
A.B.
22 Apollo Vredestein (UK) May 15, 2009 GBP 100.81 100.91 131.35 232.26 - - 1,220.80 0.11 0.02 0.09
Limited
23 Apollo Vredestein France May 15, 2009 EURO 85.80 3.60 141.96 711.01 565.45 - 2,542.29 8.94 3.47 5.47
SAS
24 Apollo Vredestein Belux May 15, 2009 EURO 85.80 5.32 62.58 498.49 430.59 - 2,000.20 5.53 6.98 (1.45)
25 Apollo Vredestein May 15, 2009 EURO 85.80 3.12 (20.15) 599.21 616.24 - 2,217.78 4.65 0.68 3.97
Gesellschaft m.b.H.
26 Apollo Vredestein Schweiz May 15, 2009 CHF 77.49 174.36 79.32 299.36 45.68 - 961.37 5.81 0.88 4.93
AG
27 Apollo Vredestein Iberica May 15, 2009 EURO 85.80 266.10 176.92 535.89 92.87 - 1,636.29 8.79 8.84 (0.05)
SAU
28 Apollo Vredestein Tires Inc. May 15, 2009 USD 73.15 969.22 (996.82) 284.58 312.18 - 1,569.86 (88.19) 0.61 (88.80)
29 Apollo Vredestein Kft (AV May 15, 2009 HUF 0.24 0.71 13.87 330.30 315.72 - 1,038.38 (3.15) 1.88 (5.03)
Kft)
30 Apollo Vredestein Opony May 15, 2009 PLN 18.41 0.92 160.84 631.85 470.09 - 1,410.07 11.22 4.89 6.33
Polska Sp. Z.o.o.
31 Vredestein Consulting B.V. May 15, 2009 EURO 85.80 1.95 269.78 283.27 11.54 - - (2.41) - (2.41)
Factsheet
Corporate

32 Finlo B.V. May 15, 2009 EURO 85.80 0.77 (20.08) - 19.31 - - - - -
33 Vredestein Marketing B.V. May 15, 2009 EURO 85.80 - - - - - - - - -
34 Reifencom GmbH, January 1, 2016 EURO 85.80 64.35 216.77 4,227.05 3,945.93 - 15,589.76 107.94 33.82 74.12
Hannover
35 Reifencom Tyre (Qingdao) January 1, 2016 CNY 11.16 5.50 (5.38) 1.10 0.98 - 1.28 0.65 - 0.65
Co., Ltd.
36 Saturn F1 Pvt Ltd September 16, GBP 100.81 205.40 (149.25) 64.06 7.91 - 51.61 (30.25) (11.57) (18.68)
2016
From our
Leadership

Note 1 Name of subsidiaries which are yet to commence operations/non-operating - Finlo B.V.
Note 2 For details of shareholding and name of subsidiaries which have been liquidated/sold/merged during the year, refer note C20.
Note 3 Financial period for all the subsidiaries is April to March.
Note 4 Details of proposed dividend by subsidiaries as on March 31, 2021 - Nil

Apollo Tyres
Value Creation at

Apollo Tyres Ltd

7
6
5
4
3
2
1

i.

Note 1
ii.

London
No.

B
year end

May 12, 2021

Our ESG
Performance

None
None

Annual Report 2020-21

Extent of Holding %
Name of the Associate

Balance Sheet (` Million)

Profit / (Loss) for the year
Latest Balance Sheet date
Part B: Joint Venture & Associate

DIN 00058921
Management

ONKAR KANWAR
Considered in Consolidation (` Million)
Discussion & Analysis

Reason why the associate is not consolidated

Not Considered in Consolidation (` Million)

Description of how there is significant influence
Amount of Investment in associate entity (` Million)

Net worth attributable to Shareholding as per latest

Chairman & Managing Director

Shares of associate entity held by the company at the
Reports
Statutory

become an associate of the Company w.e.f. February 21, 2018.

Note 2 For details of investment in joint venture (Pan Aridus LLC), refer note C20.

DIN 00058951

GAURAV KUMAR
Note 3 Name of associates or joint ventures which are yet to commence operations

NEERAJ KANWAR

Chief Financial Officer

Financial
Statements

Note 4 Name of associates or joint ventures which have been liquidated or sold during the year

Vice Chairman & Managing Director

Director
VINOD RAI

DIN 00041867

SEEMA THAPAR
Company Secretary
 y virtue of significant influence in certain business decisions under an agreement, KT Telematic Solutions Private Limited had

Membership No - FCS 6690

For and on behalf of the Board of Directors
March 31, 2021
Private Limited
KT Telematic Solutions

281
0.82
0.27
13.62
Not applicable
Refer note 1 below
45.01
25%
3,334
 APOLLO TYRES LTD.
ANNEXURE - A

Information as per Section 197 of the Companies Act, 2013, read with Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, and forming part of the Board’s Report for the Year ended March 31, 2021

S. No. Name Designation Qualification D.O.J. Age Exp. Remuneration Previous Employment Last Designation
Employed throughout the year (` Million)
1 Mr. Anand Maithani Group Head - SCM & IT (APMEA) MBA, BE February 15, 2011 46 23 11.34 Philips Electronics India Ltd. General Manager
2 Mr. Aneet Chaku Head - Customer Service (APMEA) Executive Program in Mgmt, BBH(HM) September 8, 2015 51 30 12.36 Vodafone India Limited AVP-Quality
3 Mr. Anil Chopra Group Head - CoE B.Com, A.C.A. August 18, 1992 66 40 21.64 Altos India Ltd. Manager - Finance
4 Mr. Davendra Mittal Head - Finance MBA, BE March 21, 2013 52 27 13.34 Lanco Infratech Ltd. Sr. Vice President - Projects Finance
5 Mr. Dominic George Martin Head - Product Marketing(CV/OHT) MBA, B.Com November 1, 2001 54 28 13.20 MRF Ltd. District Manager
6 Mr. Gaurav Kumar Chief Financial Officer B.Tech., MBA March 1, 2004 51 28 47.11 HCL Technologies Ltd. AVP - Mergers & Acquisitions
7 Mr. Harish Bahadur Head - Corporate Investments B.Com (H) February 2, 1975 68 46 29.46 - -
8 Ms. Harshita Pande Group Head - HR (APMEA) M.Sc.(Sustainability), Dip. In CSR March 18, 2002 54 28 11.38 Discovery Communications India Associate Director
9 Mr. Hisashi Ishibashi Head-Business Development (OE) M.Tech. (Mechnical) January 1, 2020 61 36 15.36 Bridgestone Corporation General Manager
10 Mr. K. Prabhakar Chief - Projects B.Tech., PGD Ind. Engg. ICWA March 1, 2019 66 40 41.95 Apollo Tyres (Hungary) KFT Managing Director
11 Ms. Leenaja EM Janardanan Nambiar Head-Controlling (Manufacturing & Projects) CIMA October 1, 2018 50 25 16.12 Apollo Tyres Global R&D B.V. Head Manufacturing Controling
12 Mr. Neeraj Kanwar Vice Chairman & Managing Director B.Sc, ACMS February 24, 1997 49 26 368.21 Apollo Finance Ltd. Joint President
13 Mr. Onkar Kanwar Chairman & Manageing Director B.Sc, Bach. of Admn. February 1, 1988 78 60 420.82 BST Manufacturing Ltd. Managing Director
14 Mr. Piush Bansal Unit Head - Limda Plant B.E. (Mech.), PGDBM August 20, 2013 55 35 18.50 Moser Bear India Vice President
15 Mr. Praveen Tripathi Group Head - Purchase MBA, ICWA October 15, 1990 51 31 15.29 - -
16 Mr. Praveen Moon Head - Internal Systems CA, B.Com (H) October 16, 2012 47 27 11.33 Price Water House Coopers Pvt Ltd. Associate Director
17 Mr. Prem Prakash Sharma Head - HR - Limda Plant PGDBM, PGDBA July 30, 2013 57 34 11.02 India Yamaha Motor Pvt Ltd. Group Head - GA, Personal & HR
18 Mr. P. K. Mohamed Chief Advisor - Research & Devlopment B.Sc, LPRI February 19, 2001 80 57 31.22 Ceat Ltd. Eexecutive Director - Technical
19 Mr. Rajesh Dahiya Vice President - Marketing & Sales (ISO) B.Com, MBA August 20, 1990 54 32 30.23 Indian Express Business Executive
20 Mr. Ravi Kumar Shingari Group Head - Corporate Taxation & Accounts CA, B.Com (H) September 28, 2018 42 21 17.58 KPMG National Head - India Japan Corridor
21 Ms. Ritu Kumar Group Head - Corporate Strategy & Legal CA, CS April 19, 2006 47 21 11.37 American Express Team Leader
22 Mr. Rohit Arora Group Head - Accounts (APMEA) CA September 19, 2000 49 27 15.10 ACC Ltd. Asst. Manager - Accounts
23 Mr. Sandeep Mathur Group Head - OE & Inst. Business MBA, M.Sc July 25, 1994 52 27 10.24 - -
24 Mr. Satish Sharma President - APMEA BE, PGDBM October 15, 1997 53 32 68.52 JK Industries Ltd. Manager
25 Mr. S.K.P. Amarnath Group Head - R&D (Asia) B.Tech., B.Sc February 21, 2000 52 29 12.73 Monotond Tyres Ltd. Dy. Manager
26 Mr. Suresh Damodaran Head - IEMA MBA, B.Tech. February 16, 2018 61 38 10.49 ATC Tires (P) Ltd. Exe-Vice President
27 Mr. Thomas Mathew C. Unit Head - Chennai BE/ B.Tech., MBA July 1, 1987 58 34 13.13 - -

Employed part of the year

28 Mr. Kok Heong Lim Divisional Head - TBR B.Tech. December 21, 2015 56 29 3.05 PT Gajah Tunggal Tbk, Indonesia Senior Manager
29 Mr. Pranob Kumar Chakravorty SBU - Head MBA, B.Com January 3, 2000 62 43 3.83 JK Industries Ltd. Area Manager
30 Mr. Ranbir Singh Bartwal Head - Project Commercial Executive MBA, B.Tech. March 17, 2008 51 29 10.91 Gabriel India Ltd. DGM
31 Mr. Yoichi Sato Chief - Quality & Safety Officer B.Sc (Engg) June 1, 2020 64 24 25.15 SWOT Management Solutions Private Limited Director - Business Quality

Note :
1 None of the above is related to any Director of the Company except Mr. Onkar Kanwar & Mr. Neeraj Kanwar being father and son.
2 All appointments are contractual.
For and on behalf of the Board of Directors
Place : London
Date : May 12, 2021 Onkar Kanwar
Chairman & Managing Director
DIN: 00058921
Apollo Tyres Ltd

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