APOLLO TYRES LTD

Registered Office: 3rd Floor, Areekal Mansion,

Panampilly Nagar, Kochi- 682036 (Kerala)
(CIN-L25111KL1972PLC002449)
Tel: +91 484 4012046 Fax: +91 484 4012048
Email: [email protected]
Web: apollotyres.com

NOTICE
NOTICE is hereby given that the 50th Annual General Meeting (AGM) of the Members of APOLLO TYRES
LTD will be held on Wednesday, August 2, 2023 at 3:00 PM (IST) through Video Conferencing (VC) for
which purpose the Registered Office of the Company situated at 3rd Floor, Areekal Mansion, Panampilly
Nagar, Kochi-682036 shall be deemed to be 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, 2023, 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,
2023 and report of Auditors thereon.
2. To declare the final dividend of ₹4.00 per equity share and a special dividend of ₹0.50 per equity share on
occasion of 50th AGM of the Company, aggregating to ₹4.50 (i.e. 450%) per equity share, for the financial
year ended March 31, 2023.
3. To appoint a Director in place of Mr. Francesco Gori (DIN: 07413105), who retires by rotation and being
eligible, offers himself for re-appointment.
4. To appoint a Director in place of Mr. Vishal Mahadevia (DIN: 01035771), 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 2023-24
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), Chinnapandur (Andhra Pradesh) and Company’s leased operated plant at Kalamassery (Kerala)
for the financial year 2023-24 be paid a remuneration of ₹3.60 lakhs per annum plus reimbursement of
out of pocket expenses.

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 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.”
6. FIXATION OF TENURE OF MR. ONKAR KANWAR (DIN: 00058921) AS A NON-EXECUTIVE
DIRECTOR DESIGNATED AS CHAIRMAN
To consider and if thought fit, to pass the following resolution as an Ordinary Resolution:
“RESOLVED THAT in continuation of the resolution passed by the Members of the Company at the
Annual General Meeting held on July 11, 2022 and pursuant to the applicable provisions of the Companies
Act, 2013 and the rules made thereunder, SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (including any statutory modification(s) or re-enactment thereof for the time being in
force), consent of the Members of the Company be and is hereby accorded for fixation of tenure of Mr.
Onkar Kanwar (DIN: 00058921) as Non-Executive Director designated as Chairman for a period of 5
years with effect from February 1, 2023 to January 31, 2028 (both days inclusive).
RESOLVED FURTHER THAT except fixation of the tenure for a period of 5 years, all other terms
and conditions relating to continuation of Mr. Onkar Kanwar as Non-Executive Director designated as
Chairman of the Company as approved by the Members of the Company at the Annual General Meeting
held on July 11, 2022 shall remain unchanged.
RESOLVED FURTHER THAT the Board or any Committee thereof be and is hereby authorized to do
all such things, deeds, matters and acts as may be required to give effect to this resolution and to do all
things incidental and ancillary thereto.”
7. RE-APPOINTMENT OF MR. NEERAJ KANWAR (DIN: 00058951) AS MANAGING DIRECTOR
To consider and if thought fit, to pass the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Sections 196, 203 and any other applicable provisions
of the Companies Act, 2013, the rules made thereunder read with Schedule V of the Companies Act, 2013,
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory
modification(s) or re-enactment thereof for the time being in force) subject to the approval of the Central
Government, if required and pursuant to the recommendation of the Nomination and Remuneration
Committee and Board of Directors, consent of the Members of the Company be and is hereby accorded
for re-appointment of Mr. Neeraj Kanwar (DIN : 00058951) as Managing Director of the Company for
a period of 5 years with effect from April 1, 2024 to March 31, 2029 (both days inclusive), with such
designation as the Board of Directors (hereinafter referred to as the ‘Board’ which expression shall also
include the ‘Nomination and Remuneration Committee’ of the Board) may decide from time to time on
terms and conditions as mentioned in the explanatory statement annexed to the notice.
RESOLVED FURTHER THAT the Board of the Company be and is hereby authorized to do all such
acts, deeds, things and execute all such documents, instruments, writings as, in its absolute discretion, it
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.”
8. PAYMENT OF REMUNERATION TO MR. NEERAJ KANWAR (DIN: 00058951) AS MANAGING
DIRECTOR
To consider and if thought fit, to pass the following resolution as a Special Resolution:
“RESOLVED THAT pursuant to the provisions of Sections 196(4), 197 and any other applicable
provisions of the Companies Act, 2013, the rules made thereunder read with Schedule V of the Companies

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 Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any
statutory modification(s) or re-enactment thereof for the time being in force), subject to the approval
of the Central Government, if required and pursuant to the recommendation of the Nomination and
Remuneration Committee and Board of Directors of the Company (hereinafter referred to as the ‘Board’
which expression shall also include the ‘Nomination and Remuneration Committee’ of the Board), consent
of the Members of the Company be and is hereby accorded for payment of remuneration to Mr. Neeraj
Kanwar (DIN : 00058951) as Managing Director of the Company for a period of 5 years with effect from
April 1, 2024 to March 31, 2029 (both days inclusive) on the terms and conditions and remuneration as
set out in the explanatory statement annexed to the notice with liberty and power to the Board to grant
increments and to alter and vary from time to time, the terms and conditions of the said re-appointment,
subject to the same not exceeding the limits specified under the Companies Act, 2013 or any statutory
modification(s) or re-enactment thereof.
RESOLVED FURTHER THAT in the event of absence or inadequacy of profits in any financial year,
Mr. Neeraj Kanwar will be paid the salary and perquisites as minimum remuneration in accordance with
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 the Company be and is hereby authorized to do all such
acts, deeds, things and execute all such documents, instruments, writings as, in its absolute discretion, it
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.”
9. RE-APPOINTMENT OF MR. SATISH SHARMA (DIN: 07527148) AS WHOLE-TIME DIRECTOR
To consider and if thought fit, to pass the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Sections 196, 203 and any other applicable provisions
of the Companies Act, 2013, the rules made thereunder read with Schedule V of the Companies Act, 2013,
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory
modification(s) or re-enactment thereof for the time being in force) and pursuant to the recommendation
of the Nomination and Remuneration Committee and Board of Directors, consent of the Members of
the Company be and is hereby accorded for re-appointment of Mr. Satish Sharma (DIN: 07527148) as
Whole-time Director of the Company for a period of 5 years with effect from April 1, 2024 to March 31,
2029 (both days inclusive), with such designation as the Board of Directors (hereinafter referred to as
the ‘Board’ which expression shall also include the ‘Nomination and Remuneration Committee’ of the
Board) may decide from time to time on terms and conditions as mentioned in the explanatory statement
annexed to the notice.
RESOLVED FURTHER THAT the Board of the Company be and is hereby authorized to do all such
acts, deeds, things and execute all such documents, instruments, writings as, in its absolute discretion, it
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.”
10. PAYMENT OF REMUNERATION TO MR. SATISH SHARMA (DIN: 07527148) AS WHOLE-
TIME DIRECTOR
To consider and if thought fit, to pass the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Sections 196(4), 197 and any other applicable
provisions of the Companies Act, 2013, the rules made thereunder read with Schedule V of the

3
 Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
(including any statutory modification(s) or re-enactment thereof for the time being in force) and pursuant
to the recommendation of the Nomination and Remuneration Committee and Board of Directors of the
Company (hereinafter referred to as the ‘Board’ which expression shall also include the ‘Nomination
and Remuneration Committee’ of the Board), consent of the Members of the Company be and is hereby
accorded for payment of remuneration to Mr. Satish Sharma (DIN : 07527148) as Whole-time Director
of the Company for a period of 5 years with effect from April 1, 2024 to March 31, 2029 (both days
inclusive), on the terms and conditions and remuneration as set out in the explanatory statement annexed
to the notice with liberty and power to the Board, to grant increments and to alter and vary from time
to time, the terms and conditions of the said appointment, subject to the same not exceeding the limits
specified under the Companies Act, 2013 or any statutory modification(s) or re-enactment thereof.
RESOLVED FURTHER THAT in the event of absence or inadequacy of profits in any financial year,
Mr. Satish Sharma will be paid the salary and perquisites as minimum remuneration in accordance
with Section 197 and 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 the Company be and is hereby authorized to do all such
acts, deeds, things and execute all such documents, instruments, writings as, in its absolute discretion, it
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: Amsterdam Company Secretary
Date : May 9, 2023 FCS No.: 6690

NOTES:
1. 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), Circular No. 02/2021 (dated January 13, 2021),
Circular No. 19/2021 (dated December 8, 2021), Circular No. 21/2021 (dated December 14, 2021),
Circular No.2/2022 (dated May 5, 2022) and Circular No. 11/2022 (dated December 28, 2022),
issued by the Ministry of Corporate Affairs (MCA) and SEBI Circular No. SEBI/HO/CFD/CMD1/
CIR/P/2020/79 dated (May 12, 2020), SEBI Circular No. SEBI/HO/CFD/CMD2/CIR/P/2021/11
(dated January 15, 2021), SEBI Circular No. SEBI/HO/CFD/CMD2/CIR/P/2022/62 (dated May
13, 2022) and SEBI Circular No. SEBI/HO/CFD/PoD-2/P/CIR/2023/4 (dated January 5, 2023)
(hereinafter referred to as ‘Circulars’), AGM will be held through Video Conferencing (VC) or
Other Audio Visual Means (OAVM), where physical attendance of the Members at the AGM venue
is not required. Further, all resolutions in the meeting shall be passed through the facility of e-Voting/
electronic system.

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2. In accordance with the Circulars, 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. Since the AGM will be held through VC, the route map, proxy form and attendance slips are not
annexed to this Notice.
4. In compliance with the Circulars, the financial statements including Board’s Report, Auditor’s
Report or other documents required to be attached therewith (together referred to as Annual Report
FY23) 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 30, 2023 and to all other
persons so entitled.
5. In line with the Circulars, the Notice calling the AGM along with Annual Report FY23 has also been
uploaded on the website of the Company at www.apollotyres.com. The Notice can also be accessed
from the website 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.
6. The Members can join the AGM through 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.
7. 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.
8. 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 record
date i.e. July 14, 2023 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.
9. According to the Finance Act, 2020, dividend income will be taxable in the hands of the Shareholders
w.e.f. April 1, 2020, and the Company is required to deduct tax at source (TDS) from the dividend
paid to the Members at prescribed rates in the Income Tax Act, 1961 (‘the IT Act’). In general, to
enable compliance with TDS requirements, Members are requested to complete and/ or update their
Residential Status, PAN, and Category as per the IT Act with their Depository Participants (‘DPs’)
or in case shares are held in physical form, with the Company by sending documents to enable the
Company to determine the appropriate TDS/ withholding tax rate applicable, verify the documents
and provide exemption.
A communication providing information and detailed instructions with respect to tax on the dividend
for the financial year ended March 31, 2023 shall be sent to the Members whose email addresses are
registered with the Company/ DPs.

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10. 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.
11. The relevant explanatory statement pursuant to Section 102 of the Companies Act, 2013, in respect
of the special business set out above in the notice is annexed hereto.
12. 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/ re-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.
13. All documents referred to in the notice are available for inspection through secured electronic mode
by writing to the Company at its email ID: [email protected] till the date of the meeting.
14. 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.
15. During the AGM, the Register of Directors and Key Managerial Personnel and their shareholding
maintained under Section 170 of the Companies Act, 2013, the Register of Contracts or arrangements
in which Directors are interested under Section 189 of the said Act and other documents referred to
in the explanatory statement will be available electronically for inspection without any fee by the
members upon login at NSDL e-Voting system at https://www.evoting.nsdl.com.
16. In accordance with Regulation 40 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, all requests for transfer of securities, including transmission and transposition
requests, shall be processed only in dematerialised form. In view of the same and to get inherent
benefits of dematerialisation, Members holding shares of the Company in physical form, are requested
to kindly get their shares converted into dematerialised form. Members can contact Company’s RTA
at [email protected] for assistance in this regard.
Further, Members may please note that SEBI vide its Circular dated January 25, 2022 mandated
listed companies to issue securities in demat form only, while processing any service requests viz.
issue of duplicate securities certificate; claim from Unclaimed Suspense Account; renewal/ exchange
of securities certificate; endorsement; sub-division/ splitting of securities certificate; consolidation
of securities certificates/ folios; transmission and transposition. Accordingly, Members are requested
to make service requests by submitting a duly filled and signed Form ISR-4, the format of which is
available on the website of the Company at https://corporate.apollotyres.com/investors/corporate-
governance/#?activeTab=Others.
17. SEBI vide its Circular dated March 16, 2023 mandated furnishing of PAN, KYC details (i.e. postal
address with pin code, email address, mobile number, bank account details) and Nomination details
by holders of physical securities. It may be noted that any service request or complaint can be
processed only after the folio is KYC compliant.
In terms of above Circular, folios of physical shareholders wherein any one of the said details such
as PAN, email address, mobile number, bank account and nomination are not available, shall be
frozen with effect from October 1, 2023 and such physical shareholders will not be eligible to lodge
grievances or avail service requests from the RTA of the Company and will not be eligible for receipt
of dividend in physical mode until the said details are furnished.
Further, shareholders holding shares in physical form are requested to ensure that their PAN is linked
to Aadhaar to avoid freezing of folios. Such frozen folios shall be referred by RTA/ Company to the
administering authority under the Benami Transactions (Prohibitions) Act, 1988.

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18. Members are requested to intimate changes, if any, about their name, postal address, e-mail address,
telephone/ mobile numbers, PAN, power of attorney registration, Bank Mandate details, etc. to their
Depository Participant (“DP”) in case the shares are held in electronic form and to the Company’s
Registrar and Share Transfer Agent at [email protected] in case the shares are held in
physical form, in prescribed Form No. ISR-1, quoting their folio number and enclosing the self-
attested supporting document.
19. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent
Account 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’s RTA.
20. Those Members who have so far not encashed their dividend warrants for the financial year from
FY16 to FY22, 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 FY16
is September 9, 2023.
In accordance with Section 124 (6) of the Companies Act, 2013 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 IEPF Authority. 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 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 Rules.
21. AGM shall be convened through VC/ OAVM in compliance with applicable provisions of the
Companies Act, 2013 read with Circulars.
22. 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.
23. The Scrutinizer shall submit 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.
24. 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.
25. 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.

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26. 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.
27. All documents, dematerialization requests and other communications in relation thereto should be
addressed directly to the Company’s RTA, KFin Technologies Limited, at the address mentioned
below:
KFin Technologies 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: [email protected]
Website: www.kfintech.com
28. THE INSTRUCTIONS FOR MEMBERS FOR REMOTE E-VOTING AND JOINING
GENERAL MEETING ARE AS UNDER:-
I. 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 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.
II. The remote e-Voting period begins on Sunday, July 30, 2023 at 10:00 A.M. and ends on Tuesday,
August 1, 2023 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 cut-off date i.e. Wednesday, July 26, 2023 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 Wednesday, July 26, 2023. Once the e-Vote on a Resolution is cast by
the Member, the Member shall not be allowed to change it subsequently.
III. Those Members who will be participating in the AGM through VC facility and have not cast their
vote on the resolutions through e-Voting prior to AGM and are otherwise not barred from doing so,
shall be eligible to vote through e-Voting system during the AGM. Members may follow the same
procedure for e-Voting during the AGM as mentioned below for e-Voting.
IV. The Members who have cast their vote by remote e-Voting prior to the AGM may also attend and
participate in the AGM through VC, but shall not be entitled to cast their e-Vote again.
V. Any person, who acquires shares of the Company and become Member of the Company after
dispatch of the Notice and holding shares as on the cut-off date i.e. July 26, 2023 may follow the
same instructions for e-Voting.

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 The instructions for e-Voting are as under:
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.
Step 2: Cast your vote electronically and join General Meeting on NSDL e-Voting system.
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:
Type of Shareholders Login Method
Individual Shareholders holding 1. Existing IDeAS user can visit the e-Services website of
securities in demat mode with NSDL. NSDL viz. https://eservices.nsdl.com either on a Personal
Computer or on a mobile. On the e-Services home page
click on the ‘Beneficial Owner’ icon under ‘Login’ which
is available under ‘IDeAS’ section, this will prompt you to
enter your existing User ID and Password. After successful
authentication, you will be able to see e-Voting services
under Value added services. Click on ‘Access to e-Voting’
under e-Voting services and you will be able to see e-Voting
page. Click on company name or e-Voting service provider
i.e. NSDL and you will be re-directed to e-Voting website
of NSDL for casting your vote during the remote e-Voting
period or joining virtual meeting & voting during the
meeting.
2. If you are 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 hold
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 Company name or e-Voting
service provider i.e. 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.

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 4. Shareholders/ Members can also download NSDL
Mobile App “NSDL Speede” facility by scanning the QR
code mentioned below for seamless voting experience.

Individual Shareholders holding 1. Users who have opted for CDSL Easi/ Easiest facility, can
securities in demat mode with CDSL login through their existing user id and password. Option will
be made available to reach e-Voting page without any further
authentication. The users to login Easi/ Easiest are requested
to visit CDSL website www.cdslindia.com and click on login
icon & New System Myeasi Tab and then use your existing
my easi username & password.
2. After successful login the Easi/ Easiest user will be able to see
the e-Voting option for eligible companies where the e-Voting
is in progress as per the information provided by Company.
On clicking the e-Voting option, the user will be able to see
e-Voting page of the e-Voting service provider for casting
your vote during the remote e-Voting period or joining virtual
meeting & voting during the meeting. Additionally, there is
also links provided to access the system of all e-Voting service
providers, so that the user can visit the e-Voting service
providers’ website directly.
3. If the user is not registered for Easi/Easiest, option to register
is available at CDSL website at www.cdslindia.com and
click on login & New System Myeasi Tab and then click on
registration option.
4. Alternatively, the user can directly access e-Voting page by
providing Demat Account Number and PAN No. from a
e-Voting link available on 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 able to see the
e-Voting option where the e-Voting is in progress and also able
to directly access the system of all e-Voting Service Providers.

10
 Individual Shareholders (holding You can also login using the login credentials of your demat
securities in demat mode) login account through your Depository Participant registered with
through their depository participants NSDL/ CDSL for e-Voting facility. Upon logging in, you will be
able to see e-Voting option. 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
company name or e-Voting service provider i.e. 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 above mentioned 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
[email protected] or call at 022 - 4886 7000 and
022 -2499 7000.
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
[email protected] or contact at
toll free no. 1800 22 55 33.
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.
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. Demat Your User ID is:

(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******.

11
 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 registered
Physical Form. 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’.
(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 [email protected] 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.

12
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 the Company 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 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. to the Scrutinizer
by e-mail to [email protected] with a copy marked to [email protected]. Institutional
Shareholders (i.e. other than individuals, HUF, NRI etc.) can also upload their Board Resolution/
Power of Attorney/Authority Letter etc. by clicking on ‘Upload Board Resolution/ Authority
Letter’ displayed under ‘e-Voting’ tab in their login.
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
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: 022 – 4886 7000 and 022 – 2499 7000 or send a request to Ms. Pallavi Mhatre, Senior
Manager, NSDL at [email protected].
Process for those Shareholders whose email IDs are not registered with the depositories for
procuring user ID and password and registration of e mail IDs for e-Voting for the resolutions set
out in this notice:
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 [email protected].

13
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 einward.
[email protected]. If you are an Individual Shareholder 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 [email protected] 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.
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.
INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE AGM THROUGH VC/OAVM ARE
AS UNDER:
1. Members 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 meeting’ menu
against Company name. You are requested to click on VC link placed under Join 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.

14
 5. As the AGM is being conducted through VC, Members are encouraged to express their view/
send their queries in advance mentioning their name, DP ID and Client ID/ Folio No., e-mail ID,
mobile number at [email protected] to enable smooth conduct of proceedings at the
AGM. Questions/ Queries received by the Company on or before Wednesday, July 26, 2023 on the
aforementioned e-mail ID shall only be considered and responded during the AGM or replied by the
Company suitably.
6. 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 to investors@apollotyres.
com on or before Wednesday, July 26, 2023. Those Members who have registered themselves as a
Speaker will only be allowed to express their views/ ask questions during the AGM. The Company
reserves the right to restrict the number of questions and number of speakers, depending on the
availability of time for the AGM.

By Order of the Board

For Apollo Tyres Ltd

SEEMA THAPAR
Place: Amsterdam Company Secretary
Date : May 9, 2023 FCS No.: 6690

EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013

Item No. 5
The Board at its meeting held on May 9, 2023, on the recommendation of the Audit Committee, has
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 2023-24 at remuneration of ₹3.60 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 as 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 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. 5 as an Ordinary Resolution for your
consideration and ratification.
Item No. 6
The Members of the Company at their Annual General Meeting held on July 11, 2022 had approved the
continuation of Mr. Onkar Kanwar as Non-Executive Director designated as Chairman of the Company with
effect from February 1, 2023.

15
The Board of Directors at their meeting held on August 12, 2022, on the request received from Mr. Onkar
Kanwar, had approved the fixation of tenure of Mr. Onkar Kanwar, Non-Executive Director designated as
‘Chairman’ for a period of 5 years with effect from February 1, 2023 till January 31, 2028 (both days inclusive)
subject to approval of the Members of the Company in due course.
Accordingly, the aforesaid fixation of tenure of Mr. Onkar Kanwar is required to be approved by the Members
of the Company. All other terms and conditions relating to continuation of Mr. Onkar Kanwar as Non-
Executive Director designated as Chairman of the Company as approved by the Members of the Company at
the Annual General Meeting held on July 11, 2022, shall remain unchanged.
None of the Directors or Key Managerial Personnel of the Company or their relatives, except Mr. Onkar
Kanwar, himself and Mr. Neeraj Kanwar, being his relative, is concerned or interested (financial & otherwise)
in the resolution.
The Board of Directors recommends resolution set out at item no. 6 as an Ordinary Resolution for your
consideration and approval.
Item No. 7 & 8
The Members of the Company through Postal Ballot held on December 20, 2018 had re-appointed Mr. Neeraj
Kanwar as Managing Director of the Company for a period from May 28, 2019 to March 31, 2024. The
present tenure of Mr. Neeraj Kanwar, Vice Chairman and Managing Director expires on March 31, 2024.
As recommended by the Nomination and Remuneration Committee, Board of Directors in its meeting held on
May 9, 2023, has approved the re-appointment of Mr. Neeraj Kanwar, Vice Chairman and Managing Director
of the Company for a period of 5 years w.e.f. April 1, 2024 to March 31, 2029 (both days inclusive) on revised
terms and conditions including the remuneration, subject to the approval of the Members of the Company
and Central Government, if required, in recognition of his key achievements as Managing Director of the
Company, outlined below:
• Mr. Neeraj Kanwar played a pivotal role in Apollo Tyres’ journey towards becoming one of the most
admired automotive tyre brands. He had pioneered key initiatives in enhancing the competitiveness
of the Company’s operations and products across the board.
• He was responsible for crafting Apollo Tyres’ growth story -- taking the Company from US$ 450
million to over US$ 3.0 billion.
• He was responsible for laying out the Vision FY26 for the Company with a sharp focus on Profitability
and Return on Capital. Under his leadership, the Company has been outperforming the Indian peers
in the last few years on key financial parameters. With Company’s focus on key financial parameters,
he has been instrumental in creating significant shareholder value.
• Under his able leadership, the Company expanded its global footprints by acquiring Dunlop Tyres
International in South Africa and Zimbabwe, Vredestein Banden B.V. in the Netherlands, and setting
up of a Greenfield facility in Hungary -- thereby transforming itself into a multi-geography Company
with operations across the globe. The Company also started greenfield plant in India.
• In India, he has played a pivotal role in Apollo Tyres becoming a full-range player, gaining significant
ground in commercial vehicle and passenger car tyre segments. Among the tyre players in India,
the Company was the highest spender on R&D which had paid handsome dividends in terms of
achieving leadership in truck-bus radial tyres and passenger vehicle tyres.
• His continued push on R&D had led to the establishment of two global R&D Centres for the
Company – in Enschede, the Netherlands and in Chennai, India, where a team of 350+ scientists are
developing category leading products.

16
 • Association with Manchester United Football Club, and other tie ups in India, which had helped
build the Company’s brands globally.
• Under his able leadership, the Company had been able to establish a significant presence in India and
Europe and now has made an entry in the North American market. The product portfolio strategy had
helped the team to quickly establish its mark in the North American market.
• Given the focus on sustainability and led by Mr. Neeraj Kanwar, Apollo Tyres had become the
first Company in the Indian automotive sector to get ISO 20400:2017 Sustainable Procurement
standard certification. Under his leadership and focus on sustainability, the Company has seen a big
improvement in our CDP Climate Change rating to ‘B’ from ‘D.’
• As part of the Company’s digital strategy to implement Industry 4.0, the Company had opened a
Digital Innovation Centre (DIC) in London and announced the launch of another DIC in India.
Both these hubs would use new age technologies like IoT, Cloud Computing, Artificial Intelligence
(AI), Machine Learning (ML), Robotic Process Automation (RPA) to help develop and deliver new
business models and market leading customer service.
• In 2023, the Company’s two offices in London and Singapore were named as the ‘Top Employers’
by the Top Employer Institute (TEI). TEI is the global authority on recognising excellence in people
practices.
The terms and conditions of re-appointment are detailed below:
1. Salary: ₹41.10 lakhs per month with suitable annual increases at such rate as may be determined by the
Board of Directors of the Company (which expression shall include a Committee thereof) from time
to time, commensurate with average percentile increase in the remuneration of employees at one level
below the Board of Directors.
2. Perquisites, Allowances & Other Benefits: Mr. Neeraj Kanwar shall be entitled to perquisites and
allowances like accommodation (furnished or otherwise) or house rent allowance in lieu thereof, house
maintenance allowance, reimbursement of expenses or allowances for gas, electricity, water, furnishings,
repairs, society charges and property tax, servant salary, medical reimbursement, medical/ accident
insurance, leave travel concession, club fee and such other perquisites and allowances as may be allowed
under the Company’s policies/ schemes and restricted to an amount not exceeding 200% of annual salary.
3. Profit Linked Commission: An amount as may be approved by the Board of Directors on the
recommendation of the Nomination and Remuneration Committee subject to a ceiling of 4.0% of the Net
Profit of the Company as per Section 198 of the Companies Act, 2013 on overall annual remuneration
(incl. Salary, Perquisites, Allowances & Other Benefits) payable to Mr. Neeraj Kanwar.
4. Amenities:
i) Communication facilities: The Company shall provide appropriate telephone, including cellular
phone, telefax, internet and other communication facilities to Mr. Neeraj Kanwar at his residence for
discharging his functions effectively.
ii) The Company shall provide office space required by Mr. Neeraj Kanwar either at his residence or
any other convenient place for discharging his official duties along with the required office support
facilities.
iii) Mr. Neeraj Kanwar shall be entitled to official travel for himself and his family, if considered
expedient to accompany him in the Company’s interests, during domestic and/ or overseas business
trips as per Company’s policy.

17
5. Other Benefits:
i) Contribution to provident fund, superannuation fund or annuity fund will not be included in the
computation of the ceiling on perquisites. Gratuity payable shall be in accordance with the rules of
the Company.
ii) Encashment of leave at the end of the tenure, in accordance with the rules of the Company, if any,
will not be included in the computation of the ceiling on perquisites.
iii) Provision of chauffeur driven car(s) for use on Company’s business.
iv) Housing, education and medical loan and other loan facilities as applicable in accordance with the
rules of the Company.
v) Payment/ reimbursement of membership fee & expenses of credit card(s) as may be required for
incurring official expenses while discharging his duties.
6. Mr. Neeraj Kanwar shall also be entitled to reimbursement of entertainment expenses incurred in the
course of business of the Company.
7. The above remuneration payable to Mr. Neeraj Kanwar is subject to the condition that the total remuneration
shall be within the permissible limits under Section 197 of the Companies Act, 2013, or any amendment
thereto or any other provisions as may be applicable.
8. Notwithstanding anything to the contrary contained herein, where in any financial year, during the
currency of tenure of the appointee, the Company has no profits or its profits are inadequate, the Company
will pay salary, perquisites and allowances in accordance with Section II of Part II of Schedule V of the
Companies Act, 2013, to Mr. Neeraj Kanwar as minimum remuneration, subject to other compliances of
Schedule V of the Companies Act, 2013.
Pursuant to Regulation 17(6)(e) of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) 2015, the fees or compensation payable to Executive Directors who are
promoters or members of the promoter group, shall be subject to the approval of the shareholders by
special resolution in general meeting, if the annual remuneration payable to such Executive Director
exceeds ₹5 crore or 2.5% of the net profits of the Company, whichever is higher.
The copies of the resolutions passed at the Nomination and Remuneration Committee meeting and the
Board of Directors meeting held on April 27, 2023 and May 9, 2023 respectively, are open for inspection
by the Members in electronic mode till the AGM.
The Company has received from Mr. Neeraj Kanwar:
(i) 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 (1) and (2) of Section 164 of
the Companies Act, 2013.
(ii) An undertaking that he is not debarred from holding the office of Director pursuant to order of SEBI
or any other authority.
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 Key Managerial Personnel of the Company or their relatives, except Mr. Neeraj
Kanwar, himself and Mr. Onkar Kanwar, being his relative, is concerned or interested (financial & otherwise)
in the resolutions.

18
The Board of Directors recommends resolutions, set out at item no 7 as an Ordinary Resolution and item no
8 as a Special Resolution, for your consideration and approval.
Item No. 9 & 10
The Members of the Company at the AGM held on July 31, 2019 had appointed Mr. Satish Sharma as the
Whole-time Director of the Company for a period of 5 years from April 1, 2019 to March 31, 2024. The
present tenure of Mr. Satish Sharma, President (APMEA) & Whole-time Director expires on March 31, 2024.
As recommended by the Nomination and Remuneration Committee, Board of Directors in its meeting held
on May 9, 2023, has approved the re-appointment of Mr. Satish Sharma, President (APMEA) & Whole-time
Director of the Company for a period of 5 years w.e.f. April 1, 2024 to March 31, 2029 (both days inclusive)
on revised terms and conditions including the remuneration, subject to the approval of the Members of the
Company.
The terms and conditions of re-appointment are detailed below:
1. Salary: ₹ 28.85 lakhs per month (approx.) with suitable annual increases at such rate as may be determined
by the Board of Directors of the Company (which expression shall include a Committee thereof) from
time to time, commensurate with average percentile increase in the remuneration of employees at one
level below the Board of Directors.
2. Perquisites, Allowances & Other Benefits: Mr. Satish Sharma shall be entitled to perquisites and allowances
like accommodation (furnished or otherwise) or house rent allowance in lieu thereof, house maintenance
allowance, reimbursement of expenses or allowances for furnishings, repairs & driver salary, medical
reimbursement, medical/ accident insurance, leave travel concession, club fee and such other perquisites
and allowances as may be allowed under the Company’s policies/ schemes and restricted to an amount
not exceeding 200% of annual salary.
3. Performance Linked Bonus/ Commission: An amount of ₹21.63 lakhs per month or such other amount as
may be approved by the Board of Directors on the recommendation of the Nomination and Remuneration
Committee subject to ceiling of 1.5% of the Net Profit of the Company as per Section 198 of the Companies
Act, 2013 on overall annual remuneration (including Salary, Perquisites, Allowances & Other Benefits)
payable to Mr. Satish Sharma as per Company’s policy.
4. Amenities:
i) Communication facilities: The Company shall provide appropriate telephone, including cellular
phone, telefax, internet and other communication facilities to Mr. Satish Sharma at his residence for
discharging his functions effectively.
ii) The Company shall provide office space required by Mr. Satish Sharma either at his residence or
any other convenient place for discharging his official duties along with the required office support
facilities.
iii) Mr. Satish Sharma shall be entitled to official travel for himself and his spouse, if considered
expedient to accompany him in the Company’s interests, during domestic and/ or overseas business
trips as per Company’s policy.
5. Other benefits:
i) Contribution to provident fund, superannuation fund or annuity fund will not be included in the
computation of the ceiling on perquisites. Gratuity payable shall be in accordance with the rules of
the Company.

19
 ii) Encashment of leave at the end of the tenure, in accordance with the rules of the Company, if any,
will not be included in the computation of the ceiling on perquisites.
iii) Provision of car(s) for use on Company’s business.
iv) Housing, education and medical loan and other loans facilities as applicable in accordance with the
rules of the Company.
v) Payment/ reimbursement of membership fee & expenses of credit card(s) as may be required for
incurring official expenses while discharging his duties.
6. Mr. Satish Sharma shall also be entitled to reimbursement of entertainment expenses incurred in the
course of business of the Company.
7. The above remuneration payable to Mr. Satish Sharma is subject to the condition that the total
remuneration shall be within the permissible limits under with Section 197 of the Companies Act, 2013,
or any amendment thereto or any other provisions as may be applicable.
8. Notwithstanding anything to the contrary contained herein, where in any financial year, during the
currency of tenure of the appointee, the Company has no profits or its profits are inadequate, the Company
will pay salary, perquisites and allowances as the minimum remuneration in accordance with Section II
of Part II of Schedule V of the Companies Act, 2013, to Mr. Satish Sharma, subject to other compliances
of Schedule V of the Act.
Mr. Satish Sharma aged 55 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 the
Institute of Management Technology, Ghaziabad. He is a Member of the Institute of Engineers, Indian
Rubber Institute and All India Management Association (AIMA). He is the past Chairman of Automotive
Tyre Manufacturers’ Association (ATMA). As President (APMEA) of Apollo Tyres, Mr. Satish Sharma
guides strategy and oversees the entire operations of Asia Pacific, Middle East and Africa (APMEA)
including India operations. As a member of the Company’s Board of Directors, he is a man who prefers
taking challenges head-on. His eye for new products and market strategies has contributed consistently to
the Company’s progression. Known for his exceptional leadership qualities, he continues to mentor and
coach business units within the organisation.
Mr. Satish Sharma was first appointed on the Board on April 1, 2019. Mr. Satish Sharma is also a Director
of Apollo Tyres (Thailand) Limited and Apollo Tyres (Malaysia) Sdn. Bhd. He has not resigned from any
listed Company during the past three years.
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 does not have inter-se relationship with any other Director and Key Managerial Personnel 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 5 meetings of the Board during FY23.
The Company has received from Mr. Satish Sharma:
(i) 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 (1) and (2) of Section 164 of
the Companies Act, 2013.

20
 (ii) An undertaking that he is not debarred from holding the office of Director pursuant to order of SEBI
or any other authority.
Mr. Satish Sharma has drawn a remuneration of ₹9.97 crores for FY23 and the terms and conditions of re-
appointment along with details of remuneration sought to be paid are mentioned above in the explanatory
statement.
The copies of the resolutions passed at the Nomination and Remuneration Committee meeting and the
Board of Directors meeting held on April 27, 2023 and May 9, 2023 respectively, are open for inspection
by the Members in electronic mode till the AGM.
This explanatory statement may also be read and treated as disclosure in compliance with the requirements
of Section 190 of the Companies Act, 2013.
This explanatory statement may also be regarded as a disclosure under Regulation 36 of the SEBI (Listing
Obligations & Disclosure Requirements) Regulations, 2015 read with Secretarial Standard-2 (SS-2) on
“General Meetings”, issued by the Council of the Institute of Company Secretaries of India.
None of the Directors or Key Managerial Personnel of the Company or their relatives, except Mr. Satish
Sharma, himself, is concerned or interested (financial & otherwise) in the resolutions.
The Board of Directors recommends the resolutions, set out at item no. 9 & 10 as Ordinary Resolutions,
for your consideration and approval.
DETAILS OF DIRECTORS SEEKING RE-APPOINTMENT AS REQUIRED UNDER REGULATION
36 OF THE LISTING REGULATIONS & SECRETARIAL STANDARD-2 ON GENERAL MEETINGS.
Item No. 3
Mr. Francesco Gori, aged about 71 years, holds 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 previous 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.
Mr. Francesco Gori was first appointed on the Board of the Company on February 9, 2016.
He is a Member of Risk Management Committee of the Company. He is not holding Directorship/ Committee
positions on the Board of other Companies.
He has not resigned from any listed entity during the past three years.
He is not holding any shares in the Company either directly or in form of beneficial interest for any other
person.
He has attended 5 meetings of the Board during FY23.
The Company has received from Mr. Francesco Gori:
(i) 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 (1) and (2) of Section 164 of
the Companies Act, 2013.
(ii) An undertaking that he is not debarred from holding the office of Director pursuant to order of SEBI
or any other authority.

21
He is entitled for the sitting fees for attending the Board/ Committee Meetings and the commission, as per the
applicable provisions of Companies Act, 2013 including rules related thereto and SEBI (Listing Obligations
& Disclosure Requirements) Regulations, 2015, in accordance with the criteria for payment to Non-Executive
Directors as approved by the Board. Mr. Francesco Gori is entitled to a remuneration of ₹5.36 million as
commission, as approved by the Board, for FY23.
He does not have inter-se relationship with any other Director and Key Managerial Personnel of the Company.
Item No. 4
Mr. Vishal Mahadevia, aged 50 years is currently the Managing Director, Head of India, and member of the
Executive Management Group at Warburg Pincus. Prior to joining Warburg Pincus in 2006, he was a Principal
at Greenbriar Equity Group, a fund focused on private equity investments in the Transportation sector. Prior
to that, he worked at Three Cities Research, a New York-based private equity fund and as a consultant with
McKinsey & Company. He has received a B.S. in Economics with a concentration in Finance and a B.S. in
Electrical Engineering from the University of Pennsylvania.
He was first appointed on the Board of the Company on August 21, 2020.
He is on the Board of the following other Companies:-
Sl. No. Name of the Company Designation
1 IDFC First Bank Limited Non-Executive Non-Independent Director
2 Warburg Pincus India Private Limited Managing Director
3 Micro Life Sciences Private Limited Director
He is a not a member of any Committee of the Company. However, he is a member of Committees in the
following other Companies: -
Sl. No. Name of the Company Name of the Committee Position
1 Warburg Pincus India Corporate Social Responsibility Committee Chairman
Private Limited
2 IDFC First Bank Limited (i) Nomination and Remuneration Committee Member
(ii) Credit Committee Member
(iii) Capital Raise and Corporate Restructuring Member
Committee
He has not resigned from any listed entity during the past three years.
He is not holding any shares in the Company either directly or in form of beneficial interest for any other
person.
He has attended 5 meetings of the Board during FY23.
The Company has received from Mr. Vishal Mahadevia:
(i) 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 (1) and (2) of Section 164 of
the Companies Act, 2013.
(ii) An undertaking that he is not debarred from holding the office of Director pursuant to order of SEBI
or any other authority.

22
He is entitled for the sitting fees for attending the Board/ Committee Meetings and the commission, as per the
applicable provisions of Companies Act, 2013 including rules related thereto and SEBI (Listing Obligations
& Disclosure Requirements) Regulations, 2015, in accordance with the criteria for payment to Non-Executive
Directors as approved by the Board. However, Mr. Vishal Mahadevia has surrendered the remuneration
payable to him as Non-Executive Director of the Company for FY23.
He does not have inter-se relationship with any other Director and Key Managerial Personnel of the Company.
Item No. 7
Mr. Neeraj Kanwar began his career with Apollo Tyres as Manager - Product & Strategic Planning, where he
played a crucial role in creating a bridge between the two key functions of manufacturing and marketing. In
1998, he joined the Board of Directors and was promoted to Chief - Manufacturing and Strategic Planning.
His people management skills helped him bring overarching changes in industrial relations, upgradation of
technology and benchmarking on product and efficiency parameters. In 2002, he took over as the Chief
Operating Officer of the organisation, wherein he introduced value-driven process improvements in Human
Resources and Information Technology. Mr. Neeraj Kanwar was appointed as Joint Managing Director in
2006 and elevated to Vice Chairman in 2008, and soon after to Managing Director in 2009 for his initiatives
in establishing the Company in the global arena.
As a business leader, Mr. Neeraj Kanwar is associated with leading industry associations and was recently the
Chairman of the Automotive Tyre Manufacturer’s Association, India. Mr. Neeraj Kanwar is a people-centric
leader and believes in empowering employees to enable them to undertake effective and efficient decisions at
all times. Within Apollo Tyres, he is known for his affable management style, and combine work with liberal
doses of fun.
An engineering graduate from Lehigh University in Pennsylvania, USA, Mr. Neeraj Kanwar is an avid
sportsperson.
Mr. Neeraj Kanwar, aged 51 years, was first appointed to the Board on May 28, 1999. He has drawn a
remuneration of ₹28.41 crores for FY23. The terms and conditions of his re-appointment along with details of
remuneration sought to be paid are mentioned in the explanatory statement.
Mr. Neeraj Kanwar is on the Board of the following other Companies:-
Sl.No. Name of the Company Designation
1 PTL Enterprises Ltd. Director
2 Sunlife Trade Links Pvt. Ltd. Director
3 Artemis Medicare Services Ltd. Director
4 Apollo Tyres (NL) B.V. Director (Supervisory Board)
5 Apollo Tyres (Hungary) Kft Director (Supervisory Board)
6 Apollo Tyres (UK) Holdings Ltd. Director
7 Apollo Tyres (London) Pvt. Ltd. Director
He is a member of Business Responsibility and Sustainability Committee of the Company. He is also a
member of Committees in the following other Companies: -
Sl.No. Name of the Company Name of the Committee Position
1 PTL Enterprises Ltd. (i) Stakeholders Relationship Committee Member
(ii) Audit Committee Member
2 Artemis Medicare Services Ltd. Audit Committee Member

23
He has not resigned from any listed entity in the past three years. He has attended 5 meetings of the Board
during FY23.
He is holding 671,380 shares in the Company. He is not holding any shares as a beneficial owner for any other
person.
Except with Mr. Onkar Kanwar, being his father, he does not have inter-se relationship with any other Director
and Key Managerial Personnel of the Company.
Item No. 9
For details of Mr. Satish Sharma, please refer item no. 9 of the explanatory statement of this notice.

By Order of the Board

For Apollo Tyres Ltd

SEEMA THAPAR
Place: Amsterdam Company Secretary
Date : May 9, 2023 FCS No.: 6690

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

24
 Those who changed history, changed it by going the distance.

ANNUAL REPORT
2022-23
At a Glance

₹ 245.68 Bn
Consolidated
Revenue

₹ 11.05 Bn Navigating
Net Profit

this Report
₹ 33.14 Bn Corporate Overview

Operating Profit 2 Corporate Factsheet 91 Management

6 Corporate Identity Discussion
8 Apollo Milestones and Analysis
14 Awards and Accolades
16 Growing Sustainably,
Acting Responsibly Statutory Reports
18 Unlocking Financial Potential 113 Board’s Report
127 Annual Report on
Corporate Social
From our Leadership Responsibility (CSR)
Activities
22 Letter from Chairman
131 Business Responsibility
Forward-looking statements 24 Letter from VCMD
and Sustainability
26 Board of Directors Report (BRSR)
Some information in this report may
contain forward-looking statements 28 Leadership Team 180 Corporate Governance
which include statements regarding
Report
Company’s expected financial position
and results of operations, business
plans and prospects and so on and ESG Performance Report
are generally identified by forward- Financial Statements
looking words such as ‘believe,’ ‘plan,’ 30 Global Goals: SDGs
‘anticipate,’ ‘continue,’ ‘estimate,’
32 Linkages with Sustainable 219 Standalone
‘expect,’ ‘may,’ ‘will’ or other similar
words. Forward-looking statements Development Goals 301 Consolidated
are dependent on assumptions or basis 36 Value Creation Model
underlying such statements. We have
chosen these assumptions or basis in 38 Governance
good faith, and we believe that they 44 Environment
are reasonable in all material respects.
However, we caution that actual 54 Social
results, performances, or achievements 84 Creating Products of
could differ materially from those
Tomorrow
expressed or implied in such forward-
looking statements. We undertake 85 Being Future Ready
no obligation to update or revise any
forward-looking statement, whether
because of new information, future
events, or otherwise.
Our history has been shaped by our
ambition to go the distance, challenge
the status quo and rewrite the rules
of the business. We have always had
our own share of challenges, but the
vision to make a difference and drive
progress together prevailed.
Our performance during FY23 With a stronger balance sheet,
across core markets of the better operating leverage and a
sharper focus on capital allocation
world was largely in line with and cost structure, we are making
expectations, and we are progress on several fronts — from
well positioned to leverage product differentiation, foraying
opportunities with a capex- into new markets to brand building,
R&D investments and capacity
light growth model.
optimisation. We are also deeply
committed to achieving sustainability
across the value chain.
 Apollo Tyres Ltd
Annual Report 2022-23

Corporate Factsheet

About
Apollo Tyres
With a foundation laid in 1972, we have continually
transformed ourselves to stay at the forefront of the
industry. Embracing cutting-edge technologies and
adopting globally acclaimed practices, we are among the
trusted and renowned global brands in tyre manufacturing
and sales. Our commitment to excellence enables us to
lead the market and deliver exceptional value to our valued
customers, investors, and stakeholders.

We rank among the

world’s top-tier tyre
manufacturers and
have been recognised
for our environmental
and social initiatives.
We have articulated
a strong commitment
towards ESG.

2
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Our Brands and its varying range

We cater to specific consumer segments through our key brands, Apollo and Vredestein.

Segments

Trucks and buses Light trucks Passenger vehicles

Off-highway vehicles Two-wheelers

Apollo Tyres Vredestein Tyres

The Apollo brand is the preferred choice of tyres for The century-old premier first-class brand
global and Indian original equipment automobile has refined the art of tyre innovation and
players. Our products are available across all performance. Our products include car tyres,
categories, including commercial, passenger tyres for agricultural and industrial applications
vehicles, two-wheelers, farm and industrial. and bicycle tyres.

3
 Apollo Tyres Ltd
Annual Report 2022-23

Corporate Factsheet

Our Presence 2
1
As a global leader in tyre manufacturing, we proudly
supply high-quality tyres under Apollo and Vredestein
1
brands to over 100 countries worldwide. Our advanced
manufacturing facilities, significant investments in research
and development, and wide distribution network of branded
and exclusive outlets have propelled us to become a truly
global enterprise.

MANUFACTURING LOCATIONS R&D LOCATIONS

1 Enschede - The Netherlands 1 Enschede - The Netherlands

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

*Map not to scale

Strong Presence Innovation Prowess

7 100+ 2
Manufacturing Facilities Countries Served Global R&D Centres
across India and Europe

4
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

7
4
6

28 200+ 12 210+
Patent Applications Active Patents Design Registrations Design Registrations
filed in FY23 have been granted filed in FY23 have been granted
across geographies across geographies

5
 Apollo Tyres Ltd
Annual Report 2022-23

Corporate Identity

Vision

Driving Progress,
Together
We believe that global
vision is nothing without
local knowledge, so we
continue to bring people
together and foster
an inclusive culture. By
doing so, we can power
innovation that transports
both our business and
society forward.

Enabling
Excellence
Purpose

At Apollo Tyres, we work to make

excellence universally accessible.
Every day, we connect people
from across society to the tyres,
tools and support they need to
reach their potential.
6
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Our Core Values

Following One Taking

Our Passion Family Responsibility

We champion ideas that inspire We create an inclusive culture We are committed to building
us to think big, be brave and that brings our people, partners a responsible and sustainable
challenge the ordinary and community together business that benefits society

Our Key Enablers

Technology &
Innovation
People
Digitalisation

Brand
Sustainability
DRIVING
PROGRESS,
TOGETHER

7
 Apollo Tyres Ltd
Annual Report 2022-23

Apollo Milestones in FY23…

Delivering
our Best
Brand

Apollo Tyres recorded Apollo Tyres announced its

sales of 10 million Apollo entry into the fleet market
Endurace LD in the US with the new
line-haul truck tyres

The Company announced its

official entry into the fleet
market in the United States,
unveiling a new offering of line-
The Company achieved a haul tyres at the TMC Expo in
milestone for its flagship CV Orlando, Florida.
product, Endurace LD, posting
sales of over 10 million units
since its inception in 2010.

Focus on Bangladesh Apollo Tyres launched

All-Terrain Vredestein
Pinza in Europe

Apollo Tyres introduced its first dedicated all-terrain

tyre: the Vredestein Pinza in Europe. The result
of a five-year global research and development
programme, the Pinza has been designed to be the
Apollo Tyres inaugurated its new office with sales and service
most capable off-road Vredestein tyre ever, while at
teams to cater to the customer base in Dhaka, Bangladesh
the same time offering superior standards of on-road
and launched Apollo Apterra AT2 for the growing SUV
grip, traction, rolling resistance and refinement.
segment, and Apollo Endutrax MA for the CV segment.

8
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Vredestein Pinza All Terrain Vredestein launched new Pinza Launch of our Vredestein
tyres introduced in India HT tyres in United States premium motorcycle
tyres in Bangkok, Thailand
In our quest to continue to
offer wide range of products
to the North American market,
Vredestein Tyres announced
the launch of its new Pinza HT
line of tyres in FY23. The newest
addition to the highly successful
Vredestein Pinza family, the Pinza
The Company introduced the HT is Vredestein’s highway all-
Apollo Tyres launched Vredestein
dedicated and premium tyres for season tyre designed for trucks,
premium motorcycle tyres in
SUVs in India, Vredestein Pinza SUVs, and crossovers.
Bangkok, Thailand, strengthening
AT. These tyres, with all weather
its product offering in the ASEAN
grip and excellent stability, are
market. The two-wheeler tyres
comfortably rugged and deliver
from the brand would cater to the
quieter rides.
growing superbiking segment in
Thailand. The Vredestein Moto
launch was held at the Motor Sport
Park Suvarnabhumi (MSP) in FY23.

Sustainability

Apollo Tyres secured the Launched ‘Go The Distance’ Pitch built
prestigious ISO 20400 with Repurposed Tyres
certification for Sustainable
Procurement Underlining its initiative towards
achieving Circular Economy,
Apollo Tyres became the first Company in the Company launched ‘Go
the Indian automotive sector to get the The Distance’ Pitch built
ISO 20400 certification. The Company’s with repurposed tyres at its
raw material procurement process was manufacturing facility in Andhra
successfully validated by a third party for Pradesh, India.
ISO 20400:2017 Sustainable Procurement
standard.

9
 Apollo Tyres Ltd
Annual Report 2022-23

Apollo Milestones in FY23…

Sustainability

Apollo Tyres obtained Our Sustainability

good rating in CDP Carbon Commitments
Disclosure Assessment
• Reduce Scope 1 emission intensity by 25% in
Our journey towards embedding FY26 compared to baseline year FY20.
Sustainability in everything • Reduce Scope 2 emission intensity by 35% in
we do at Apollo Tyres was FY26 compared to baseline year FY20.
recognised externally in the CDP • Improve water withdrawal intensity by 25% in
Climate Change assessment. FY26 compared to baseline year FY19.
Apollo Tyres achieved significant
• Use 40% Sustainable Materials [10%
improvement in the CDP
Recycled Materials and 30% Biobased
Climate Change disclosure score
materials] by 2030.
from level D to level B in FY23.
• Sourcing 30% of total power usage from
Renewable sources by FY26.

Digitalisation

Apollo Tyres launched Digital Launched Digital Innovation

Innovation Hub in UK Centre in Hyderabad

Apollo Tyres announced the launch of

its Digital Innovation Hub in London.
As part of the Company’s digital
strategy to implement Industry 4.0,
the Innovation Hub will use Artificial
Intelligence and Machine Learning
technologies to solve complex
manufacturing problems, focussed on Apollo Tyres in partnership with
improving the efficiency, quality, and the Telangana Government
sustainability of its manufacturing announced the launch of a Digital
practices. Innovation Centre in Hyderabad
to work in areas like Industry 4.0,
IoT, AI/ML, Digital Twins, Block
Chain and Cloud Computing. This
is the second Digital Innovation
Centre for Apollo Tyres, with the
first being in London.

10
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Digitalisation

Launched Apollo FIT Launch of SAP Rise

The Company rolled out Apollo As part of our Digitalisation

FIT (Fleet Inspection Tool) – a journey, the Company successfully
mobile application enabled with migrated SAP and other support
Bluetooth NSD gauge in FY23. systems to the AWS Cloud under
This tool will support the Fleet the SAP offering - RISE.
Management team with the
capability to capture various
parameters of tyres under service,
which will help it in various
aspects of performance metrices
and opportunities for continuous
product improvements.

Technology & Innovation

Apollo Tyres launched Apollo Tyres received 5-star

Vredestein Flotation rating for tyres
Optimall: A VF Trailer
tyre for optimum soil
preservation

Apollo Tyres introduced a new

Vredestein VF Flotation tyre
developed to better preserve
the soil underneath heavy slurry
tankers and agricultural trailers.
The new Vredestein Flotation As India initiates the journey
Optimall is a premium tyre solution towards ‘star rating’ of tyres in
that raises the bar in terms of soil the country, Apollo Tyres became
preservation, grassland-friendliness the first Company to be awarded
and self-cleaning. with 5 stars for its Apollo brand
of light truck radials from the
Bureau of Energy Efficiency
(BEE). For Passenger Car Tyres,
‘Amperion’ bagged the 5-star
rating after evaluations as per the
new regulations.

11
 Apollo Tyres Ltd
Annual Report 2022-23

Apollo Milestones in FY23…

Technology and Innovation

Apollo Tyres launched Inaugurated Advanced Apollo Tyres launched its

new gen agri tyres, R&D Tyre Testing facility first dedicated
VIRAT in India Micro-Mobility tyre –
The Vredestein Cargo
Apollo Tyres launched the new Apollo Tyres inaugurated an
generation Agriculture tyres, Advanced Tyre Testing facility,
‘VIRAT’ range in the presence which is housed at its Global R&D
of farmers and the business Centre, Asia in Chennai, India.
partners in Chandigarh, India. The new facility helps in fine
‘VIRAT’ range is an allrounder, tuning the performance of the
with superior performance products by simulating closely to
in both Agri and Haulage the real-world conditions.
segments, and is available in
both, front and rear fitments.
Apollo Tyres announced the
launch of its first dedicated micro-
mobility tyre, the Vredestein
Cargo. Developed specifically for
electrically assisted cargo bikes
used for urban deliveries, the new
tyre made its debut at Eurobike
2022 in Frankfurt, Germany.

People

Great Place To Work Apollo Tyres featured

Certification in ET Now’s Finest
Workplaces

Apollo Tyres was featured

in ET Now’s ‘India’s Finest
Workplaces’ - a series that
highlights organisations’
work environments and best
practices adopted to improve
the work culture.
Apollo Tyres has been re-certified as a
Great Place To Work by the Great Place To
Work® Institute. This year’s certification
holds special significance as for the first
time, each employee of Apollo Tyres (India)
was invited for the survey and more than
5,000 employees participated, earning our
Company this acclaimed certification.

12
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Apollo Tyres launched EV Apollo Tyres launched new range of

specific tyres for passenger Tramplr series of Enduro tyres for
cars and two-wheelers premium motorcycles

Apollo Tyres introduced the Tramplr range of

Apollo Tyres introduced specific tyres for Enduro Off-road and Enduro Street tyres for
electric vehicles (EVs) for both, passenger Indian premium motorcycles market (150 –
vehicles and two-wheelers. Apollo Amperion 500 cc). Tramplr range will cater to various
range of tyres for the PV segment, whereas motorcycle segments like Sport Touring,
Apollo WAV range for the two-wheelers, Adventure Touring, Cruisers and Street Sports,
were launched for the Indian market. which constitutes around 20% of the overall
motorcycle market in India.

Apollo Laureate Programme Top Employers in

Singapore and the UK
The very first cohorts of the
Apollo Laureate programme
graduated from their 12-month
journey in FY23. Aligned with
our value of ‘One Family,’ we
ensure that we provide best-in-
class learning and development
opportunities to our people.
Apollo Laureate Leadership
Development programme is one
such platform which focusses
Apollo Tyres was certified as
on creating a Laureate talent
a Top Employer 2023 in both
pipeline and ensures that the
Singapore and the UK for its
identified leaders of tomorrow
best-in-class HR policies and
strengthen Apollo leadership
people practices.
competencies and unleash
their full potential, positively
impacting business outcomes.

13
 Apollo Tyres Ltd
Annual Report 2022-23

Awards and Accolades in FY23…

Recognised
for Excellence
Deming Prize

Apollo Tyres’ manufacturing

facility in Chennai, India received
the prestigious Deming Prize
for achieving outstanding
performance by practicing
Total Quality Management,
utilising statistical concepts and
methodologies based on the
Company’s excellent business
philosophy and leadership.

Compliance Team Green Champions Good Design

2022 Award Award Awards

Apollo Tyres received the Apollo Tyres’ manufacturing Apollo Tyres received the
Compliance Team 2022 facility in Chennai received the Good Design Awards in the
Award by Legasis Services Green Champions Award by the Transportation category for its
and Bombay Stock Exchange Government of Tamil Nadu, India Vredestein products - Pinza HT
for demonstrating excellence for its exceptional contribution and Pinza AT All Terrain Tyres by
in executing the Compliance in the areas of Environment Chicago Athenaeum: Museum of
framework. Protection and Sustainability, architecture and design and the
Awareness on Water Conservation, European Centre for Architecture
Scientific Management of Solid Art Design and Urban Studies.
Waste, Biodiversity Conservation
and Sanitation.

14
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

SEEM National Energy ‘Safe Place To Work’ Special Award for

Management Award Recognition contribution in
(SNEMA) Tyre Sourcing and
Development

For the third year in a row,

Apollo Tyres’ manufacturing Apollo House, the Corporate
facilities in Perambra and Headquarters of Apollo Tyres was Apollo Tyres bagged a Special
Kalamassery in Kerala, India won certified as a ‘Safe Place to Work’. Award for its contribution in Tyre
the prestigious ‘SEEM National Sourcing and Development at the
Energy Management Award VECV Annual Supplier Conference
(SNEMA)’ in Industries and 2022. Volvo Eicher Commercial
Facilities (Tyres) category. The Vehicle (VECV) is a joint venture
event was organised by Society of between the Volvo Group and
Energy Engineers and Managers Eicher Motors Limited. Apollo
(SEEM) and the award ceremony Tyres exports its range to over
took place in Delhi, India. 34 countries and was recognised
as an industry leader in driving
modernisation in commercial
transportation in India and the
developing world.

ASSOCHAM 18th Indo-American

WORKVISION Corporate
2022 HR Excellence Excellence (IACE)
Award Awards 2022

Apollo Tyres Global R&D Centre, Apollo Tyres won the 18th
Asia received the ASSOCHAM Indo-American Corporate Excellence
WORKVISION 2022 HR Excellence (IACE) Award 2022 for significant
Award in the category of contributions in boosting bilateral
Effective Drivers of Recruitment, trade between India and the US.
Engagement and Retention.

15
 Apollo Tyres Ltd
Annual Report 2022-23

Growing Sustainably,
Acting Responsibly

People 18,850
Total workforce
354,577
Man hours of
training imparted

Planet 9,957 MT
Recycled materials
consumed
41%
Water Withdrawn
Recycled

Profit ₹ 245,681 Mn
Revenue

16
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

0.58 1.49+ Mn 32
Loss Time Injury People reached through Healthcare centres
Frequency Rate CSR initiatives established
(LTIFR)

104,187 GJ 14% 13,355 tonnes

Energy Saved Share of renewable in CO2 eq saved from
total power consumed Energy efficiency
in FY23

₹ 33,137 Mn ₹ 11,046 Mn
EBITDA Net Profit

17
18
FY19 19.85 FY19 175.49

(H Bn)
(H Bn)
FY20 19.39 FY20 163.50

operations
FY21 27.97 FY21 173.97

Revenue from

other income)
FY22 25.74 FY22 209.48

EBITDA (excluding
FY23 33.14 FY23 245.68
Potential

FY19 12.69 FY19 6.80

(H Bn)
(H Bn)

FY20 8.24 FY20 4.76

Net Profit

FY21 16.12 FY21 3.50

other income)
EBIT (including
FY22 12.98 FY22 6.39
Unlocking Financial

FY23 19.36 FY23 11.05

FY19 0.45 FY19 22.93

(H Bn)

(Ratio)
outflow

FY20 0.61 FY20 28.36

FY21 0.36 FY21 11.90

FY22 0.40 FY22 18.46

Net Debt / Equity

Capital expenditure

FY23 0.34 FY23 7.75

Annual Report 2022-23
Apollo Tyres Ltd
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Net Debt/ EBITDA Net Debt/ EBIT

(excluding other income) (including other income) Return on equity
(Ratio) (Ratio) (%)

8.97
7.30
3.10

6.9
2.29

5.51
1.81

3.58

4.8
3.59
1.49

1.31

2.59

3.3
2.24
FY20

FY20

FY20
FY23

FY23

FY23
FY22

FY22

FY22
FY19

FY19

FY19
FY21

FY21

FY21

Revenue Segmentation Revenue Segmentation Revenue Segmentation

by Geography by Customers by Products
(%) (%) (%)

42.8
67.7 77.4 6.0
5.0

28.4 22.6 36.6

3.8
9.6

APMEA Europe Others Replacement OEM Passenger vehicle Off-highway

Truck and bus Light truck

Others

19
 Apollo Tyres Ltd
Annual Report 2022-23

Visionary
Leadership;
Translating Vision
into Reality

From our Leadership

22 Letter from Chairman

24 Letter from VCMD
26 Board of Directors
28 Leadership Team

20
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Apollo Tyres benefits from an experienced

and accomplished Board of Directors,
Management, and Governance Teams,
who possess the expertise and vision to
effectively navigate change and successfully
achieve the Company's short, medium, and
long-term goals. Their valuable insights
and guidance contribute to the continued
growth and success of Apollo Tyres.

21
 Apollo Tyres Ltd
Annual Report 2022-23

Letter from Chairman

Dear Shareholders,

"Excellence is not a
destination; it is a
continuous journey that
requires unwavering
commitment."
– Brian Tracy

We had rolled out our

I am proud to announce that vision - Driving Progress,
your Company has achieved Together – in FY22 along
remarkable financial results with our purpose – Enabling
for the fiscal gone by. We grew Excellence. Unwavering
more than 17% to close at commitment coupled with
H 24,568 crores and crossed consistency was the theme
the $ 3 billion mark. for Apollo Tyres in fiscal
2022-23… going the distance
on our vision and progress.

22
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

As I reflect upon the past year, I using the power of data science, I am
am delighted to share with you the confident that we will be a benchmark
exceptional results achieved by your in the industry in terms of sweating
Company, demonstrating a steadfast our assets. Such manufacturing
pursuit of excellence. Despite the
We have received efficiency is the delta between a
unprecedented challenges presented unending support profitable and a losing organisation in
by a changing global landscape, we
have not only weathered the storm
from banks, financial this increasingly global industry.

but have also thrived. institutions and Looking ahead, I think that setting

Another area of our unwavering

National and state targets is not a difficult thing.
Importantly, achieving the stated
commitment has been the tremendous governments where future is what differentiates the
work happening on our growth pillars we operate, which has ‘Great’ and ‘Good’ companies. The
and you will read about the progress role of the top leadership at Apollo
we made in these areas in the letter allowed us to surpass Tyres is to ensure that everyone is
from the Vice Chairman & Managing the goals we had set for moving forward together, and I am
Director. confident that success will engender
ourselves. further progress. While this is not
I am proud to announce that your an easy task in a multi-cultural,
Company has achieved remarkable multi-racial and diverse ecosystem,
financial results for the fiscal gone I take pride in saying that with our
by. We grew more than 17% to close ‘One Family’ value system, we have
at H 24,568 crores and crossed the $ 3 managed to build a culture of taking
billion mark. Both Indian Operations on challenging tasks and progressing
and European Operations’ revenue together to achieve goals.
grew 18% and 11% respectively (in
INR terms). Despite the challenging In conclusion, I would like to thank
demand scenario across geographies, steady gains in Europe in terms of each one of you, our valuable
I am delighted to say that our revenues, profitability, and market shareholders, for being our co-
operations across India and Europe share and now ready to make gains passengers on this journey. We have
have done well, and importantly in the North American market. The received unending support from banks,
ahead of the market. fiscal saw us introducing best-in-class financial institutions and the various
products in all our markets. In fact, State and National Governments
Time and again, I have mentioned where we operate, which has allowed
our US market saw a few big-ticket
that as a Company, we always strive us to surpass the goals we had set for
launches helping us gain a strong
for profitable growth by focusing on ourselves. On behalf of the Board of
foothold in the largest tyre market
healthy top and bottom-line numbers. Directors, I would like to acknowledge
of the world. We have recently
I am, time and again, validated by the every single employee, network
signed an agreement with Canada’s
examples of companies shutting down partner and business partner for
largest retailer of passenger car and
or filing for bankruptcy for burning having stood by Apollo and actively
light truck tyres to sell our premium
cash while chasing growth at all costs. contributed to its success.
Vredestein tyre brand.
Hence, it is a constant pre-occupation
for us to have a robust product mix, The final piece to our strategy has Regards,
work continuously on price and been a relentless focus on cost. We
product leadership and continuously continue to keep an eye on good
invest in building the products brands cost and bad cost, and this has
– Apollo and Vredestein — to ensure seen a positive impact on our RoCE
healthy margins and profitability for percentages. The other aspect of
the Company. cost control is around enhancing
manufacturing efficiencies across Onkar Kanwar
Our other pivot has been to nurture Chairman
the organisation. With one of the
and invest in existing markets and
growth pillars, digitalisation, focused
seed new ones. Even as India continues
on bringing in more efficiency by
to be a major market, we have made

23
 Apollo Tyres Ltd
Annual Report 2022-23

Letter from VCMD

strong foundation for accelerated
digitalisation. We are seeing initial
success in our digital journey to
implement Industry 4.0 in terms of
efficiency improvement at our plants,
re-aligning our supply chain processes
and other productivity gains. We
achieved end-to-end supply chain
digitalisation between India and US.
This has enabled us to connect supply
chains across these markets in real
time and will play a pivotal role in
facilitating growth in the US market
with supplies from India.

After setting up a Digital Innovation

Centre (DIC) in London, partnering
with the reputed Glasgow University,
we also announced a Digital
Innovation Centre in Hyderabad.
Both the DICs will further support us
with bringing new age technologies
like IoT, Cloud Computing, Artificial
Intelligence (AI), Machine Learning
(ML), Robotic Process Automation
(RPA) and Block Chain to help develop
and deliver new business models and
market leading customer service.

Technology and Innovation

Since the early years, the Company
has believed in being self-sufficient
in its technology. We continued
to invest to further strengthen
our two global R&D Centres in
India and the Netherlands. With
over 350 plus people working in
Dear Shareholders, amongst the largest manufacturing product development and over 200
facilities in Asia, was awarded the patents filed on tyre technology,
coveted Deming Prize, which is one of our R&D prowess has become a key
FY23 was a year where
the highest awards on Total Quality differentiator for us.
we continued to focus
Management (TQM). The Deming
on our growth pillars — Prize is a testimony of our relentless During the year, we inaugurated an
Digitalisation, Technology effort and ability to deliver the best Advanced Global Tyre Testing Centre
and Innovation, People, in terms of quality and experience and will be using this for enhancing our
Brand and Sustainability — to our customers. Further, you will effectiveness and efficiency for original
and worked around the year find below a few highlights of the equipment manufacturers (OEMs)
to further strengthen these tremendous work done around each and replacement projects. The year
saw us become the first Company in
areas by building capacity of these growth pillars.
India to introduce tyres with 5-star
and capabilities.
Digitalisation rating as we rolled out specific tyres
First and foremost, I would like for electric vehicles (EVs) for both,
The fiscal year saw us making passenger vehicles and two-wheelers.
to share that our Chennai Plant,
considerable progress in building the

24
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Also, we were the first Company to be Our Indian business achieved a and Scope-2 emission intensity by 25%
awarded with 5 stars for our light truck huge milestone – sales of over 10 and 35% respectively by FY26 against
radials in India. We continue to build million (1 crore) units of Endurace baseline year of 2020.
on our technology leadership with the LD, the flagship CV product. Since
launch of Vredestein Quatrac Pro EV, its inception in 2010, it has been Our work around this pillar for the
Europe’s first all-season tyre developed successfully transforming the face of past years saw a change in our CDP
specifically for EVs and hybrids. trucking in India. Climate Change score which improved
to ‘B’ from ‘D’ acknowledging our
Like every year, we saw our products The year saw launches across the globe commitment on environmental action.
being ranked at pole position in including our first dedicated all-terrain Our concern about end-of-life tyres
multiple test results. Leading UK tyre — the Vredestein Pinza — in saw us joining hands with many
motoring magazine Auto Express has Europe to the launch of Vredestein different partners for innovative tyre
‘commended’ Vredestein Quatrac and premium motorcycle tyres in Bangkok, recycling technology.
Vredestein Ultrac in its annual Product Thailand, catering to the growing
We became the first Company in
Awards, placing them ahead of superbiking segment in Thailand to
the Indian automotive sector to
many big-brand rivals. Going beyond the new Pinza HT line of tyres in the
get ISO 20400 certification for our
performance, we have been designing North American market. As mentioned
raw material procurement process.
good looking tyres and winning the above, we have been the first to launch
We believe that this is a great first
Good Design Awards 2021 by the Europe’s first all-season tyre developed
step, and we intend to carry forward
Chicago Athenaeum: Museum of specifically for battery EV and hybrids
the rigour in alignment with our
architecture and design, the European and the first Company in India to
Sustainability Goals. Focussing on
Centre for Architecture Art Design introduce tyres with 5-star rating.
this further, our team has successfully
and Urban Studies is a clear validation
demonstrated developing tyres with
of this. We won two awards under People
75% sustainable materials.
the Transportation category for our
With a value of ‘One Family’, our
Vredestein tyres — Pinza HT and Pinza Our continuous focus on RoCE and
people are at the core of everything
AT All Terrain. sweating our assets ensured that
we do. During the year, we launched
we start FY24 on a stronger wicket.
Brand multiple initiatives around building
We have launched ‘AVOLVE’, to
people capability and creating a
integrate mobility service business
The year saw multiple actions in this robust talent pipeline. We launched the
model into our operations and explore
growth pillar as we launched best-in- second cohort of the Apollo Laureate
capital-light growth opportunities.
class products, celebrated milestones Programme, for emerging and
Our servitisation model would offer
and added more OEMs in Europe. established leaders, globally and the
tailored solutions to the targeted
Future Leaders programme, partnering
We were selected to supply our tyres customers, especially commercial
with IIM Bangalore for the APMEA
for Way truck ranges by Industrial vehicle fleet operators, and improve
region. We were proudly certified as
Vehicles Corporation (IVECO) their operational efficiencies evolving
Top Employers in Singapore and in their business to the next level.
group, giving us a foothold in the the UK, for 2023. Global L&D was an
European OEMs market in the truck area of intense focus at the Company In the pages that follow, I hope you get a
and bus sector. Further, Volkswagen during the fiscal and we clocked more sense of how we have worked to deliver
Commercial Vehicles selected our than 32,000 learning hours, with 87% sustainable and profitable growth by
Vredestein Quatrac all-season tyres returning learners. focussing on our growth pillars. We will
as original equipment for the new continue to live our vision of ‘Driving
Caddy. We have been working closely Sustainability Progress, Together’ and I look forward to
with the Volkswagen Group as we update you on a periodic basis.
supply Vredestein Ultrac and Sportrac As a responsible and progressive
5 summer tyres for the all-new Audi global citizen, we clearly articulated
our commitments in the ESG Warm Regards,
A1 Sportback. Another feather in the
cap has been selection by the BMW (Environment, Social and Governance)
Group where we started supplying space and declared our sustainability
Vredestein Ultrac tyres as original commitments including becoming
equipment for the all-new BMW 2 carbon neutral by 2050, increasing
Series Active Tourer. usage of sustainable raw material to Neeraj Kanwar
40% by 2030 and improving Scope-1 Vice Chairman and Managing Director

25
 Apollo Tyres Ltd
Annual Report 2022-23

Board of Directors

The guiding force

that directs the
Company to
achieve excellence
and motivates
Apolloites to
achieve greater
success and deliver
significant and
sustainable Onkar Kanwar
Chairman
Neeraj Kanwar
Vice Chairman and
long-term growth, Managing Director

while upholding
best practices.

Akshay Chudasama Francesco Crispino

Regional Managing Partner, Co-founder, Greater Pacific Capital
Shardul Amarchand
Mangaldas & Co

Francesco Gori Gen. Bikram Singh (Retd.)

Former CEO, Pirelli Tyre Former Chief of Indian Army

26
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Lakshmi Puri Pallavi S Shroff Dr. Jaimini Bhagwati

Former Ambassador and Regional Managing Partner, Former India’s High Commissioner
Assistant Secretary General Shardul Amarchand to UK and Ambassador to the
United Nations Mangaldas & Co European Union

Robert Steinmetz Satish Sharma Sunam Sarkar

Former Chief of International President (APMEA) and President & Chief Business
Business, Continental AG Whole-time Director Officer, Apollo Tyres Holdings
(Singapore) Pte Ltd

Vikram S Mehta Vinod Rai Vishal Mahadevia

Former Chairman, Ex-Comptroller and Auditor Managing Director, Head of
Shell Group of Companies General of India India Warburg Pincus

27
 Apollo Tyres Ltd
Annual Report 2022-23

Leadership Team

Our leaders who

are responsible
for the overall
strategy,
direction and
decisions.

Onkar Kanwar Neeraj Kanwar

Chairman Vice Chairman and
Managing Director

28
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Benoit Rivallant Daniele Lorenzetti Gaurav Kumar

European Operations Research and Technology Finance and Legal

Hizmy Hassen K Prabhakar P K Mohamed

Digitalisation and Supply Chain Projects (Advisor) Technology

Satish Sharma Sunam Sarkar Yoichi Sato

Asia Pacific, Middle East and Sustainability, Procurement, Quality, Health, Safety and
Africa Operations Human Resource and Environment
Corporate Communications

29
 Apollo Tyres Ltd
Annual Report 2022-23

Apollo Tyres
Sustainability
roadmap in
alignment
with UN’s
Sustainable
Development
Goals (SDGs)

30
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Rated one of
India’s 50 most
Sustainable
Companies
based on SDG
alignment by
the 2021 Capri
Global Capital
Hurun India
Impact 50 List

31
 Apollo Tyres Ltd
Annual Report 2022-23

Linkages with
Sustainable Development Goals

32
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

1 3 5 6

Over 17,000 Over 8.3 million Over 14,000 women Over 23,000
beneficiaries provided beneficiaries trained on gender- beneficiaries provided
livelihood opportunities outreached for based rights and equal access to potable
for continued provision of opportunities drinking water
employability or healthcare services
entrepreneurial Over 75% of women Over 5,300 beneficiaries
endeavours trained on Income provided access to safe
generation activities sanitation
are employed

7 8 9 12

Adoption of ISO20400 190+ active patents 40% sustainable

Accelerated our efforts
a framework across geographies material by 2030
to harness renewable
for Sustainable 08 industry – academia
energy. Vision to utilise
Procurement. First collaboration
renewable energy-
Company in the 1600+ active
based power 30% by
Automotive Sector to trademarks across
FY26
receive the certification. geographies

13 14 15 17

Carbon neutral by 2050 Biodiversity is our global Investment in Forward looking

Commitments theme. afforestation projects institutional
undertaken for Scope 1 for local communities partnerships like GPSNR
and 2 emission intensity to continue sustainable Adoption of ISO 26000
by 2026 livelihood opportunities - global framework for
Sustainability

33
 Apollo Tyres Ltd
Annual Report 2022-23

ESG
Performance
Report
This report covers information pertaining to the
period from April 1, 2022 to March 31, 2023. The
scope of the report includes Apollo Tyres’ Corporate
Office, European Operations including Enschede,
The Netherlands and Gyöngyöshalász, Hungary; and
APMEA operations including Chennai, Tamil Nadu;
Limda, Gujarat; Perambra and Kalamassery (leased
unit), Kerala; and Chinnapandur, Andhra Pradesh.

34
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

ESG Performance Report

36 Value Creation Model
38 Governance
44 Environment
54 Social
84 Creating Products of
Tomorrow
85 Being Future Ready

35
 Apollo Tyres Ltd
Annual Report 2022-23

Value Creation Model

INPUT VALUE CREATION APPROACH

FINANCE CAPITAL

Capital Expenditure Purpose

Outflow (consolidated) D 7.75 bn
Enabling
Net Debt Excellence
(consolidated) D 43.40 bn

Capital Employed
(consolidated) D 128.78 bn

Values
Following Our Taking One
HUMAN CAPITAL
Passion Responsibility Family
Total workforce 18,850 We champion ideas We are committed We create an exclusive
that inspire us to to building a culture that brings our
Apollo Safe Way – Individual
think big, be brave responsible and people, partners, and
Ownership Workshop conducted
and challenge the sustainable business community together
ordinary that benefits society
Global Employee Engagement Survey,
Apollo Voice conducted and achieved
90% participation from employees. OUR COMMITMENT
Reducing Scope 1 emission Reducing Scope 2 emission
intensity by 25% in FY26 intensity by 35% in FY26
SOCIAL AND RELATIONSHIP CAPITAL compared to baseline compared to baseline
year FY20. year FY20.
CSR spend in FY23 D 132.25 mn

Apollo Samadhan - An initiative to provides swift redressal

to customers at the business partners. Apollo Radial Service
Assistance (ARSA) : Technically qualified individual engages
with this customers to optimise their operational efficiency.
Apollo Partnership Pact [APP] for Preferred Upstream Suppliers

INTELLECTUAL CAPITAL

Skilled R&D workforce 429

Research & Development allocated

capex (consolidated) for FY22 is D 1,081.74 mn

MANUFACTURED CAPITAL

Operating sites across the globe 7

R&D centres 2

Property, plant and equipment

(consolidated) of D 158.86 bn

NATURAL CAPITAL

Raw material consumed in operations 708,700 MT

Energy consumed 6,935 TJ

m water withdrawn
3
2.20 mn m3
Sourcing 30% of total power Improving water withdrawal
usage from Renewable intensity by 25% in FY26
Sources by FY26. compared to baseline
year FY19.

STAKEHOLDER MAP
Six stakeholder groups play a
pivotal role in our business Employees Community

36
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

OUTPUT OUTCOMES SDG MAP

FINANCE CAPITAL FINANCIAL CAPITAL

Cash generated by operating Net debt to EBITDA excluding other income (ratio)
activities (consolidated) D 21.34 bn (consolidated) FY23 1.31
Net debt to Equity (ratio) (consolidated) FY23 0.34
Consolidated
operating profit D 33.14 bn Earnings per share (J) (consolidated) FY23 17.39
Return on Equity (consolidated) FY23 0.09
Credit ratings: CRISIL AA+/stable for long term CRISIL A1+ for
HUMAN CAPITAL short term IND AA+/stable for long term IND A1+ for short term
16,000+ people made aware about health and
safety risk assessment beyond work.

123 business units underwent HSE ownership HUMAN CAPITAL

assessment and road map developed.
354,577 Total manhours for training imparted
Secured Engagement score of 87 Certitified as a #GreatPlaceToWork for the 10th year in a row.
A total of 177,943 intervention achieved in Health & Safety
SOCIAL AND RELATIONSHIP CAPITAL ISO 14001:2015 and ISO 45001:2018 certification for all
manufacturing sites
Over 1.49 mn CSR beneficiaries
A total of 21,652 training workdays achieved for risk
The number of outlets have increased by management practices
66% in FY23.

80% + upstream supplier signed ATSPP

SOCIAL AND RELATIONSHIP CAPITAL
Communities
Almost 10 Mn beneficiaries were reached, with 8.3 Mn from
the Healthcare sector served till FY23.
INTELLECTUAL CAPITAL
Customer: Operational efficiency increased by 15 -20%
Intangible assets worth D 7,386.83 mn beacause of Apollo Radial Service Assistance (ARSA)
Patent applications were filed in FY23 28
Value Chain:
100% of the Natural Rubber suppliers signed the Apollo
Sustainable Natural Rubber policy (ASNRP).

INTELLECTUAL CAPITAL
MANUFACTURED CAPITAL
Active patents across geographies 200+
Production in FY23
Designs across geographies 210+
Chennai 251,578 MT

Perambra 80,588 MT

Kalamassery 30,071 MT
MANUFACTURED CAPITAL
Limda 150,359 MT Depreciation and Amortisation
D 14.19 bn
Chinnapandur 82,850 MT (consolidated) FY23
Depreciation and Amortisation
Enschede 18,607 MT D 9.07 bn
(Standalone): FY23
Hungary 62,862 MT Capital Expenditure Outflow
D 7.75 bn
(consolidated) FY23
Countries served 100+

NATURAL CAPITAL NATURAL CAPITAL

Total recycled material used 9,957 MT
CO2 eq total GHG footprint 8.34 Lakh tonnes Total water recycled/reused 898,525 m3
Waste generated 32,275 tonnes Total energy saved in FY23 104,187 GJ

Shareholders & Investors Value Chain Partners Customers Environment

37
 Apollo Tyres Ltd
Annual Report 2022-23

Governance
GOVERNANCE

Governance for
An Enabling
Ecosystem
ENVIRONMENT

Our focus is on strong ethics and commitment to

best-in-class Governance. Over the last few years,
the Company has invested in processes guided
by forward-looking policies to build a sustained,
inclusive and equitable economic growth.
SOCIAL

38
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

*Key Performance Indicators

All employees trained on Code of Rated as low risk category in

Conduct Sustainalytics ESG assessment

Aligned with ISO 20400 standard Sustainability Committee established

for Sustainable Procurement as to drive towards achieving
continuation of ISO26000 journey sustainability objectives

A Sustainability Roadmap with 6 focus

areas

*Based on core assessment criteria

39
 Apollo Tyres Ltd
Annual Report 2022-23

Sustainability at Apollo Tyres The Company’s sustainability The Company has adopted ISO 26000
statement resonates with the as its guiding standard to define
Sustainability is one of the Company’s approach and outlines its Governance model, embedding
GOVERNANCE

Company’s 5 key growth pillars that “Apollo Tyres will continuously sustainability within the organisation.
for achieving vision for FY26. The work towards achieving Sustainability Furthering this approach, it recently
Company has taken a framework across all its operations and value aligned its procurement framework
approach to incorporate chain.” and practices to the international
sustainability principles into its standard of ISO 20400 on Sustainable
core operations and business goals. Procurement.

The Company has developed a Sustainability Management Framework that further defines its Sustainability Roadmap
for FY26. It is categorised into six focus areas, aligned with with Sustainable Development Goals (SDGs) integrated
with digitisation;
ENVIRONMENT

Establishing Sustainability
Governance model

Combating Climate Change

Working towards Circular Economy

SOCIAL

Building a Responsible Value Chain

Fostering a People-Centric approach

Engaging with Communities

40
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

The roadmap is supported by action performance a core business objective, The Company also constituted
plans for each focus area with clear the Company began submitting its working groups on Environment and
call to action and outcomes by 2026. disclosures, based on international extended producer responsibility to
Followed by these action plans, half- guidelines since 2010. These align with the six focus areas of the
yearly progress review is conducted to disclosures have been instrumental roadmap, ensuring delivery of specific
map the progress and collect feedback in supporting continual improvement outcomes under these heads.
on improvements. Further to this, the towards a better growth trajectory in
six focus areas will be reinforced by all domains of the triple bottom line –
digitalisation as an overarching pillar. social, environmental, and financial.
In its efforts to make sustainability

Sustainability Steering The Committee meets once in a The Company’s risk management
Committee quarter. The Sustainability function processes focus on ensuring that these
acts as the secretariat for the risks are promptly identified, and a
The President & Chief Business officer Committee, responsible for providing mitigation action plan is developed
(CBO) heads the Sustainability direction on initiatives to undertake and monitored periodically to create
Steering Committee and reports to and provide updates. sustainable growth. Sustainability
the Chairman, who is the highest risks are identified through formal
level of management position in the The Group took strategic decisions and informal interactions with the
Company. The CBO has the ultimate during the year, releasing the stakeholders, and mitigation plans are
responsibility for management Sustainability commitments for the developed. The risks are prioritised and
strategy and overall management vision period of FY26, covering Carbon reported to the Board each quarter.
including climate-related issues. Emissions, Water Usage, Sustainable
Raw Materials and Diversity & For instance, Climate Change Risk was
The Sustainability Steering Group Inclusion for the vision period and Raw locked 2.5 years ago as a strategic
represented by senior members of materials for FY30. risk with high impact which was
the management, act as a conduit incorporated by Apollo Tyres in its
between the Board of Directors Risks And Mitigation corporate risk register. Based on the
and the Company. The Committee mitigation plan, the Company has
The Company also has in place a
provides oversight on sustainability taken a conscious decision to define
robust risk management framework
issues of critical significance and decarbonisation roadmap and made
that identifies and evaluates
guides the Company towards 2026 climate change commitment.
business risks and opportunities.
achieving sustainability objectives by
setting up an overall vision.

Governance

Board of Risk
VCMD
Directors Committee

Sustainability Members -
Steering Group President APMEA, President Europe, Chief Technology Officer, Chief
Quality and Safety Officer, Chief Financial Officer, Chief Business
Officer, Chief R&D Advisor
Sustainability
Team Head Sustainability and CSR, and team

Corporate Risk
APMEA Europe
Committee

The Company recorded notable improvement in Sustainalytics ratings moving from Medium Risk Category to Low-Risk
Category in FY23. [core assessment criteria]

41
 Apollo Tyres Ltd
Annual Report 2022-23

Framework for Sustainability

Apollo Tyres adopted ISO 26000:2010, an International Standard on Social Responsibility to develop its
GOVERNANCE

Sustainability Governance Model. The standard has 37 issues spread across seven core subjects. The Company
has adopted 29 out of these for establishing its procedures. All the adopted procedures are also independently
assured by a third party.

Community involvement Human rights issue

and development
Due diligence
Community involvement Avoidance of complicity
Employment creation and skills Resolving grievances
development
Discrimination and
Technology development and vulnerable groups
access
ENVIRONMENT

Fundamental principles
Wealth and income creation and rights at work
Health

Consumer issues Community Labour practices

involvement Human Rights
Fair marketing, and development Employment
factual and unbiased and employment
information and fair relationships
tion Gover
contractual practices isa na
an Conditions of work
g

Protecting consumers’ and social protection

nc
Or

health and safety Social dialogue

Consumer Labour
SOCIAL

Sustainable issues practices Health and safety

consumption at work
Consumer service, Human development
support, and and training in
complaint and the workplace
dispute resolution
Education and Fair operating
awareness The Environment
practices

Fair operating practices The environment

Anti-corruption Prevention of pollution
Responsible political Sustainable resource
involvement use
Fair competition Climate change
Promoting social responsibility mitigation and
in the value chain adaptation

Respect for property rights Protection of the

environment,
biodiversity and
restoration of natural
habitats

42
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Policy Framework and Fair Apollo Tyres Code of Conduct sets out Fair competition: The Company is
Operating Practices key policies that outline the standards committed to conducting business
and behaviours that help to shape and affairs in a fair and ethical manner
The Company is guided by appropriate strengthen the organisational culture. that promotes open and fair
publicly stated policies to address All the employees have undergone competition in its best interests and
the needs and expectations of its mandatory training on the Code of its business partners. It has developed
spectrum of stakeholders. It identifies, Conduct. a Competition Compliance Manual to
adopts, and applies standards of prevent engaging in anti-competitive
ethical behaviour appropriate to Whistle Blower Policy: With this behaviour and conducts employee
its purpose and activities. It has policy, the Company has a strong vigil awareness on legislations related
been able to sustain productive mechanism to deal with instances to fair competition through regular
relationships with other companies of unethical behaviour, actual or e-mailers, newsletters, trainings,
because of its responsible business suspected, fraud or violation. The meetings, and manuals.
practices. Further, it is following functioning of the whistle blower
all applicable legal and regulatory mechanism is periodically reviewed by
requirements. the Audit Committee of the Board.

43
 Apollo Tyres Ltd
Annual Report 2022-23

Environment
GOVERNANCE

Being an
Ecosystem
Player
L ENT
OINAM
E N VSIOR C

Our aspiration to be a true ecosystem

player has led us to think holistically on
ecology, environment and energy.
SOCIAL

44
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Key Performance Indicators

14% 41% 104,187 3.25 M /MT 3

Of Green Water Recycled GJ energy Saved Specific Water

Component in Total Withdrawal
Power Share

Global Commitments

CO2

Reduce Scope 1 Reduce Scope 2 Improve water Use 40% Sustainable

emission intensity emission intensity withdrawal intensity Materials [10%
by 25% in FY26 by 35% in FY26 by 25% in FY26 Recycled Materials
compared to compared to compared to and 30% Biobased
baseline year FY20. baseline year FY20. baseline year FY19. materials] by 2030

RE target - Sourcing
30% of total
power usage from
Renewable sources
by FY26

45
 Apollo Tyres Ltd
Annual Report 2022-23

Combating Climate Change

GOVERNANCE

Apollo Tyres is working concertedly To keep its approach comprehensive, the Carbon Emission Profile FY23
to create climate resilient operations. Company has also been looking at Value
This is in line with the Company’s Chain emissions or the Scope 3 footprint 2021-22 GHG Emissions
commitment to be carbon neutral by and exploring ways to reduce it. (tCO2 eq) - Scope Breakup
2050. The climate adaptation strategy
The Environment Working Group has 327,390 194,478
includes levers such as renewable
energy usage, energy efficiency and the pivotal role of deciding on the
shifting from coal to biomass. To ensure thematic areas of work under the
a gradual transformation to a low climate change theme. It also advises
carbon trajectory, the Company has the Sustainability Steering Committee
worked out a decarbonisation strategy, on the targets and performance
looking at ways to reduce its Scope 1 against them.
L ENT

and Scope 2 emissions in the Europe

and APMEA regions. In the reporting
year, the Company has announced its In FY23, the Company
OINAM

targets for FY26 covering Scope 1 and has revised the

Scope 2 emissions. This is in addition to
Environment Policy
E N VSIOR C

312,949
the earlier target of Renewable power
declared in FY22. The organisation has based on need
assessment.
Scope 1 Scope 2 Scope 3
improved its commitments on Scope
2 emissions to 35% from previous
committed target of 25%. In FY23, the
Company recorded an improvement
Extended Producer
over 21% & 19% in the Scope 1 and Scope
2 intensities respectively from the
Responsibility
baseline year of FY20. This reiterates The evolving concept of Extended
the organisation’s commitment towards Producer Responsibility (EPR)
SOCIAL

reaching carbon neutrality goal.

legislation, a strategy to pass the
At the Company level, 14% of its power responsibility to the producers to
requirement in the reporting period The Company has promote and increase the use of
was met by renewable (wind and solar) been responding product recovery and minimise
environmental impact, is a pivotal
sources. Taking forward its long-term
commitment to renewable power
to the CDP step to move away from a linear
to be 30% by FY26, Apollo Tyres has Climate Change approach.
ensured green power for its largest questionnaire In the reporting year, EPR legislation
manufacturing facility in Chennai, in
the southern part of the country. This since FY20. In on plastic waste and e-waste was
will increase the share of renewable the reporting extended to include End of Life
Tyres (ELT) in India. In this context,
energy to more than 30% of the total year, Apollo Apollo R&D is working with various
for this manufacturing facility. The
Company invested in CSE Deccan Solar, Tyres recorded recyclers to use the recycling
a subsidiary of Cleantech Solar, a sum a significant materials in their products as a part
of compliance to this regulation.
of H 93 million, for a 27.2% equity, to get
a guaranteed supply of 40 million units
improvement in the
of electricity per annum for its Chennai disclosure score from Apollo Tyres has partnered with
Tyromer Inc, a leader in non-
facility. In addition, the Company has level D to level B. chemical devulcanisation of end-
invested in Hybrid power of 5 MW
of-life tyres. Tyromer Inc, through
capacity for its Limda Plant, Gujarat.
their Indian associate, Tyromer
These initiatives have moved RE share to A
A- India LLP will be supplying recycled
about 14% to total power share. B
B-
rubber material, produced using
C its environmentally sustainable

B
Our CDP Score
Hungary Plant has installed a solar C-
power plant of 9.3 MW. D processes to Apollo Tyres. This will
D-
help increase the sustainable raw
material content in the product mix.

46
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Resource Conservation Driving Sustainable Consumption

At Apollo Tyres, resource use efficiency is given prime importance as it translates The rolling resistance of the EV
to optimal use as well cost benefits. tyre is 30% lower than the ICE tyre
translating into reduction of rolling
Raw Material Footprint loss and extended battery range,
without compromising any other
The three main constituents used for manufacturing tyres are natural rubber, performance.
synthetic rubber and carbon black. While these constitute a major part of the raw
material, it uses other materials as part of its overall raw material requirement. Prototypes of the agricultural and
passenger tyre have been developed
with 75% sustainable materials. An
Share of Raw Material Consumed, APMEA and Europe Operations in FY23
extensive test programme has been
(in %) initiated to assess the functional
APMEA Europe
efficiency and capability of this tyre.
34 39 To support the light weighting of tyres
while maintaining their performance,
an initiative is taken to redesign tyres
33 26 for different product categories.

To align with the Company’s

sustainability objectives, a
technical level discussion carried
10 15 out among ATMA (Automated Tyre
Manufacturers Association) members
and government representatives to
address the shortcomings associated
23 20 with newly notified EPR guidelines.
Natural Rubber Synthetic Rubber Natural Rubber Synthetic Rubber

Carbon Black Other Raw Materials* Carbon Black Other Raw Materials*

*Other Raw Materials include associated process materials.

Total raw material consumed across all the operations: 708,700 metric tonnes. Total recycled material:
9,957 metric tonnes. This has increased by 13 % as compared to last financial year.

Break up of Recycled Raw Materials by Type, APMEA

and Europe Operations in FY23

APMEA Europe (in %)

57 19

26 76
5

17

Crumb Rubber Chlorobutyl Reclaim Butyl Reclaim NR Reclaim

Re-claim Rubber Ultrafine Reclaim

47
 Apollo Tyres Ltd
Annual Report 2022-23

Some of the improvements achieved in certain parameters in FY23

GOVERNANCE

Passenger vehicle (PV): Truck Bus Radial (TBR): range of products for export
and domestic markets.
Achieved the recognition Apollo Tyres becomes the
of First Indian Tyre Brand first in CV segment to be Nitrogen curing technology
to get fuel savings label approved for 5 Star Label in TBR has been adopted in
with 5-STAR RATING for fuel efficiency as per Hungary and Chinnapandur
for Passenger Car Tyre Bureau of Energy Efficiency Plants envisaging the
Category by Bureau of Tyre labelling programme. sustainability and smooth
Energy Efficiency (BEE). All range of radial Tube operations in future. Nitrogen
“Amperion” bagged the type Light Truck tyres are curing helps in shortening the
L ENT

prestigious 5 Star rating in the 4 Star/ 5 Star band. curing cycle and increases
after evaluation as per the
OINAM

The Company has improved the utilisation rate of curing

new regulations. the rolling resistance of press compared to Hot
E N VSIOR C

commercial vehicle tyre by water curing. Nitrogen curing

In UHP category, Aspire
4G+ is upgraded with
6%. helps in reduction of steam
consumption compared
20% improved Rolling In line with the commitment
to steam cure system.
Resistance. to reducing material usage,
Moreover, the quality of
Apollo has developed light
product, uniformity and
weight carcass technology
appearance is improved.
SOCIAL

and launched light weight

48
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Tyre Improvements for Electric Vehicles (EV) :

One of the major revolutions in the automotive less impact noise. It also moderates
sector is the electrification of vehicles. shoulder vibrations which are potential
Contributing to this development and sources of noise.
to address the requirement for this fast- Enhanced Wet Grip is a desirable attribute
emerging market, Apollo Tyres has developed for tyres. The Company has been investing
an EV range which offers a low rolling to improve the wet grip which includes –
resistance coefficient, reduced noise and
better comfort without sacrificing structural  a. A pattern with wide circumferential
durability and wear performance. Several grooves along with optimally oriented
sizes are now available in its portfolio to cater lateral grooves offering efficient
to the demand of the upcoming Electric channelling of water while tyre contacts
vehicles. a wet road. This together with optimally
placed sipes establish enhanced grip of
Some of the innovations that have been the tyre onto the road.
made for tyres made for electric vehicles are  b. Specially designed tread cap
enumerated below. compound reinforced with silica
A tyre flattens at the contact area to maximises enveloping of road asperities
generate necessary footprint for traction. by the tyre tread and thereby
Apollo Tyres has developed a Tread cap maximizing the area of contact to resist
compound which generates less heat on tyre slippage on wet roads.
such deformation that occurs periodically c. Ideal pressure distribution across the
while rolling. The tyre has an optimized footprint extends a synergistic support
cavity contour which facilitates a carcass to above phenomena to maximise
structure with ideal tension to minimize efficiency in road holding even at higher
deformation and energy loss. Also, the speeds and cornering.
cavity contour is designed to minimize  Vs effect high tractive loads on tyres
E
aerodynamic drag to offer less resistance to cause higher slip and abrasion which
to cut through air. releases suspended particulate matter
Tyre road interaction creates noise into the air and surroundings. Apollo
pollution. The Company’s low noise has developed Tread compound which
technology involves – overcomes the conflict between traction
and abrasion to offer excellent mileage
a. A tread pattern comprising varying with enhanced traction. Reduced rate of
block sizes and their optimised wear results in extended tyre life through
sequencing around the tyre. This significant reduction of tyre particle
spreads the noise generating emission for a given usage life.
frequencies to avoid resonance.
b. Optimised cavity contour helps tyre to
make an ideal contact patch causing

49
 Apollo Tyres Ltd
Annual Report 2022-23

Energy Performance
GOVERNANCE

Apollo Tyres utilises a mix of renewable the reporting year was 6,935 TJ. The
and non-renewable fuel types in its share of direct energy was 43% (3978
operations. The India operations, TJ) and the indirect energy accounted
mainly use coal. There is also a for 43% (2,957 TJ).
conscious shift from fossil fuels to
biomass in all the plants in APMEA The Indian plants have been using
region. The Chinnapandur plant in renewable power in their operations.
Andhra Pradesh runs completely The region used 17% of renewable
on Biomass. The Company has also power in its total power demand in
invested in renewable energy like FY23. The sources included imported
solar and wind power as direct energy power as well as captive capacities.
sources. In the Europe operations,
The Company has been making
direct energy is sourced from natural
efforts to achieve energy efficiency
gas. Indirect energy sources in the
through improvements in its process
Indian operations comprised of grid
L ENT

design, conversion and retrofitting of

electricity along with wind energy. In
equipment and use of energy efficient
Europe, electricity is the main source of
OINAM

equipment. There were several

indirect energy. By the use of biomass,
initiatives that were undertaken
the Company has reported 13,355
E N VSIOR C

during the reporting period resulting

tonnes of CO2 of avoided emissions.
in 104,187 GJ of energy savings.
The total energy consumption (from
Further continuing the journey of
both direct and indirect sources) for
energy savings, Apollo Tyres became

Share of Direct and Indirect Break-Up of Direct Energy by Break up of Indirect Energy by
Energy Consumed, FY23 Source, FY23 (%) Source, FY23 (%)

43%
SOCIAL

33
10
2 55
4 74
rect Energy
Indi
8
1
1

6,935 TJ
8
4
Coal Furnace Oil State Electricity Board Thermal Power
Direc
t Energy
HSD & LDO Biomass Renewable Power Steam
Solar Wind

57%
Natural Gas

the first Company to be awarded with Bureau of Energy Efficiency (BEE),

5 stars for its Apollo brand of light while few of them have also received
truck radials as a part of ‘star rating’ 4-star ratings. BEE’s label programme
of tyres. Multiple SKUs of 16-inch provides the customers information on
Apollo Endurace RA and LD have fuel/energy savings and helps them
received the 5-star ratings from the take an informed buying decision.

50
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Sustainable Water Use

Prudent use of water has been an a further step, Apollo Tyres has The primary source of water at the
important aspect of operations. started to get its water footprint operations is surface water. Other
The Company has committed verified by an independent 3rd sources included ground water and
to improve its water withdrawal Party since FY22. The certificate is municipal water.
intensity and has been investing a part of the report.
in processes to achieve this. As

469,440 193,682
Perambra Kalamassery

105,112 737,105
Hungary
2,198,698 Limda

Total Annual
Water Withdrawal
(in m3), FY23

27,842 261,149
Netherlands Chinnapandur

469,440
Chennai
The APMEA operations carried out several initiatives to conserve water in the reporting year. Some of them are
enumerated below –

Increased Ultrafiltration
reuse of water
rainwater treatment for
into Trench Ultrafiltration STP
process water unit installed
recycling Condensate Closed to treat ETP
recovery Use of loop final water
system Nitrogen in circuit for reusing
place of hot with Air as plant
water system cooled softwater
in curing chiller
process

The wastewater generated at sites Osmosis Process based on process in Europe, wastewater is collected
are segregated in Process and requirement. In the Indian operations, and discharged to Common Effluent
Domestic wastewater streams and the treated water at site is used Treatment Plant (CETPs) as per
treated in Effluent Treatment Plant to meet the water requirement regulatory mandate.
accordingly followed by Reverse replacing fresh water. While in sites

51
 Apollo Tyres Ltd
Annual Report 2022-23

Break-Up of Total Water Usage in terms of Recycled

Total recycled or reused water Water and Fresh Water Withdrawal, FY23

898,525 m3
GOVERNANCE

2,065,744
898,525

737,105

469,440
404,368

356,328
288,265

261,149

193,682

108,770
which was

92,369

52,793
41%
L ENT

of total
annual water
OINAM

TOTAL APMEA

Chennai

Chinnapandur

Limda

Kalamassery

Perambra
withdrawal.
E N VSIOR C

Water Recycled or Reused Withdrawal

Break-Up of Total Water Usage in terms

of Recycled Water and Fresh Water
SOCIAL

Withdrawal, FY23 (%)

59.13

40.87

Withdrawal Recycled

In the APMEA operations, the total annual water

withdrawal was 2,065,744 m3, of which 898,525
m3 (44%) was recycled or reused during the
reporting period.

52
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Promoting Biodiversity
Apollo has designed and gardens such as butterfly garden, fruit Perambra during the reporting period.
implemented several activities within garden to enhance the biodiversity Also, the Company has an organic
the plants on promoting Biodiversity. and increase species of flora and farming project within the plant
fauna. Apiculture, for collection of premises in Limda, Gujarat.
At its Kerala plants in Perambra and
honey from rubber trees within the
Kalamassery, the activities include
premises, was also continued at
maintaining the existing theme

Waste generation category FY23 (%)

Waste Management A total of 333 metric tonne of hazardous

and 4,411 metric tonne of non-hazardous
96
Apollo Tyres strives towards improving waste was generated in the reporting
its environmental performance by period in Europe region.
reducing pollution including emissions
reduction, water management, waste
management, usage/ disposal of
toxic and hazardous chemicals and
other identifiable forms of pollution.
32,275 MT
Manufacturing operations use state- Total waste generated in the
of-the-art technology to ensure cleaner 4 reporting year
operations.
Hazardous Non Hazardous
Waste generated from the operations
included hazardous and non-hazardous
types in solid and liquid forms. The total
In the APMEA operations, 877 metric tonne
solid waste generated in the reporting
of hazardous and 26,412 metric tonne of
period was 24,705 metric tonnes.
Non Hazardous was generated.

53
 Apollo Tyres Ltd
Annual Report 2022-23

Social
GOVERNANCE

Enriching and
Empowering a
Prosperous Society
ENVIRONMENT

The existence of a broad spectrum of stakeholders

(Customers, Value Chain Partners, Employees,
Communities and Environment) that we operate in,
reinforced with the commitment to diversity & inclusion
is our biggest propeller towards growth.
SOCIAL

54
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Employees
Key Performance Indicators

3.54 lakhs 1.49+ mn

Total manhours of Beneficiaries outreached
training imparted through CSR initiatives
in FY23

Communities
80% 100%
Upstream supplier have Natural Rubber suppliers
signed the Apollo Tyres have signed the Apollo
Sustainable Procurement Sustainable Natural
Policy (ATSPP) Rubber policy (ASNRP)

Va l u e C h a i n P a r t n e r s
Customers

55
 Apollo Tyres Ltd
Annual Report 2022-23

Customers –
GOVERNANCE

Central to Existence

Apollo Tyres values its customers Quality and Safety of products in and R&D departments in their
as it works towards two broad use are ensured through periodic endeavour to further improve
management approaches; checks at each stage of the product product quality and customer
Customer Care and Transparent lifecycle. Dealers and consumers are engagement. For instance, based
Communication. Importantly, it regularly educated on proper use of on the customer feedback, the
values their purchasing choices and products and right application. Company redesigned the Alnac
their growing role in promoting 4G, an OEM tyre to Maruti Suzuki
sustainability. Customer Delight Baleno, and offered it in the
replacement market.
Customer Care Apollo Tyres actively engages
with its customers to understand Furthermore, redressal mechanisms
ENVIRONMENT

Safety product complaints, fostering are in place for customers to

trust, transparency, and improved register their grievances and raise
The Company focusses on providing reputation. There are multiple their queries. Apollo Customer
products to customers that platforms and programmes Care ensures speedy response and
minimally impact the environment including; ‘Voice of the Market’, and resolution of complaints with a
and are produced with safety, ‘Voice of the Customer’ that not quick turnaround time to enhance
reliability and efficiency in mind. only collect valuable feedback from customer experience. Few other
Customers are provided ample customers but also help various initiatives are mentioned below :
information through product labels functions including manufacturing
to assist them in making an informed
decision.
SOCIAL

Apollo Tyre Commercial

Service Centre Vehicle (CV) Zone

A pioneering, specialised In addition to the value-added service at CV Zones, we have equipped 11 CV

service center in Gurugram, zones with electric vehicle charging stations in collaboration with Tata Power.
helps customers get on the
spot grievance redressal
instead of going to multiple
touch points.

Apollo Samadan

This is an online platform for

business partners to resolve
complaints of customers on
the spot within 2 hours at their
respective counters.

56
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Employees
Transparent Communication

Apollo Certified Fitter (ACF) Apollo Radial Service

A fitter engagement and Assistance (ARSA)
welfare initiative with the A technically qualified
aim of educating customers individual engages with the
on the recommended fitment customers in this initiative
practices. The network of to optimise their operational
Apollo Certified Fitters has efficiency through standard

Communities
increased to 544 in FY23. checks, This leads to an
increase in operational
efficiency by 15-20%.

Apollo Direct (Contact Apollo Radial Repair

Centre Management) Centre (ARRC)
A dedicated customer care Customers are supported
service center for grievance as dealers are guided to
redressal which is accessible
m er App repair damaged tyres
seven days a week and in
to r instead of scrapping them
various regional languages. through this initiative. Total
oa
s

71 ARRC are operational.

Cu

ch

Apollo Samadhan
Bad Road Buddy (BRB) Activities An initiative to provide swift redressal
• Micro BRBs - 155 Rides | 26 Cities | Apollo Tyres to customers at the business partner’s

Va l u e C h a i n P a r t n e r s
4,000 Participants counters. Service’s reach is extended
• Save the Earth Rides - 55 Rides | 79 through Apollo Samadhan at OEM
Clubs | 2,800 Riders Franchises at selected outlets. The
number of outlets have increased
• Rain Forest + Motorama - 5,500 People
by 66% (8 Tractor OEMs & 1 Car
• SUV Drives - 6 Drives | 100 Vehicles OEM) since the previous year. Apollo
OEM Samadhan Centres have
has increased to 570 and Apollo
Samadhan centres to 1,949 in FY23.

On Spot Dispositions Apollo Tractor Owners Meet

• New Initiative for better (ATOM)
customer Connect as per Training sessions are held to engage
the changing customer farmers and educate tractor owners
expectations. in tyre care and repair. The sessions
• 31,049 Tyres inspected of which are accessible to dealers,
17,573 unique Customers franchisees, fitters and retreaders,
have achieved 698 agri-customer
engagements activites for the year.
Customers

No incident of non-compliance with regulations, voluntary

codes concerning the health and safety impacts of products
and services within the reporting period.

57
 Apollo Tyres Ltd
Annual Report 2022-23

Value Chain -
GOVERNANCE

Partners in Progress

The Company’s Corporate Sustainable Procurement Sustainable Procurement Guiding

Procurement function manages Vision Principles:
the role of sourcing raw The guiding principles for Sustainable
material from suppliers across Apollo Tyres will work towards procurement are as follows:
Asia, Africa, Europe and USA. minimising the environmental
and social impacts to its business
The Company is commited to by adopting sustainable
complying with applicable laws 1
procurement policies and in
that govern international trade. this regard ensure the suppliers’ Driving through governance, transparency, and
Importantly, the Company participation in promoting accountability.
expects its suppliers’ services sustainable practices in the
ENVIRONMENT

and products comply with all raw material supply chain. The 2
national and other applicable Company will ensure strong Enhanced usage of recycled and renewable raw
laws and regulations. sustainability governance materials in products including encouraging
framework that provides for the Company’s Raw Material (RM) supply
At the heart of its core
both identification of key chain partners in increasing the content of their
procurement activities, the
material issues, risks and recycled and renewable raw materials in their
Company strives to promote
opportunities arising in the manufacturing processes.
sustainable procurement
raw material supply chain; and
agenda through its Sustainable
strategies to address them. 3
Procurement vision, policy and
guiding principles, which have In line with the Company’s Striving towards highest environment, health &
been translated into supplier sustainability vision, it safety standards for RM supply chain partners
Code of Conduct in its upstream on manufacturing processes and operations
continuously works towards
raw material supply chain. and in the raw material supplier partner’s
achieving sustainability
manufacturing processes and operations and to
objectives across its operations
SOCIAL

Sustainable procurement work towards applicable certifications in their

and value chain. It aims to respective industries.
has the most positive
achieve so, by adopting
environmental, social and
sustainable procurement 4
economic impact across the
policies and by ensuring
entire life cycle. This process Integrating international and domestic standards
the partner’s participation
enhances resource and cost on Human Rights as applicable within the raw
in promoting sustainable
efficiency, improves the quality material supplier partner’s operations.
practices in its core processes.
of products and services, and
ultimately minimises adverse Sustainable Procurement 5
impact on environment
Policy Ensuring compliance of international norms
and drives socio-economic
development in the upstream on decent work agenda and encouraging the
The Company considers its
Company’s ‘One Family’ culture in the raw
raw material supply chain. suppliers as long-term business
material supply chain.
partners and is committed to
The Company has taken a
conducting its business affairs
commitment to increase 6
in a fair and ethical manner
usage of sustainable materials Work on Natural Rubber Sustainability in line
that promotes open and fair
(including recycled materials) with the Global Platform for Sustainable Natural
competition in the best interests
to 40% by 2030. Rubber (GPSNR) guidelines to drive improvements
of Apollo Tyres and its suppliers.
in the Social, Economic and Environmental
Apollo Tyres’ Sustainable It strives to continuously
performance of Natural Rubber supply chain.
Procurement policy directions enhance customer satisfaction
consist of three sections: by providing cost effective and
quality materials on a timely 7
Sustainable Procurement
Vision, Sustainable basis, while working in tandem Driving continual improvement in sustainable
Procurement Policy, and with its supply chain partners on procurement agenda in the raw material supply
Sustainability objectives (ESG chain.
Sustainable Procurement
Guiding Principles: aspects), enabling sustainable
business practices.

58
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Employees
With a view to reduce carbon footprint, chemical and waste management specific needs of the natural rubber
optimising the transport flow/ disposal, recycling, industrial sector, in addition to the standard
logistics and supply proximity to the wastewater treatment and discharge, requirements for the environment,
manufacturing locations, the Company air emissions controls, environmental social and governance pillars. Having
encourages sourcing from domestic permits and environmental reporting. joined Global Platform for Sustainable
partner suppliers with all other factors Natural Rubber (GPSNR) in March 2019
being equal.In addition, dealing Supplier Code of Conduct as an ordinary member, the Company
directly with manufacturers enables is working towards improvements in
The Company expects its business
close engagement and resilience in the the socio-economic and environmental
partners to demonstrate their
upstream supply chain to efficiently programmes of the natural rubber
commitment for compliance with its
respond to changes in the dynamic supply chain by implementing Apollo
Supplier Code of Conduct, which lays

Communities
markets at all times. Sustainable Natural Rubber Policy
down the foundation for deployment
(ASNRP) for the natural rubber supplier
The Company develops import of the sustainable practices in the
partners in accordance with GPSNR
supplier partners as an additional supply chain.
policy framework. Till date, 100% of
and alternate source of supply and the Natural Rubber suppliers have
The code of conduct is developed
to seek collaboration under joint signed the Apollo Sustainable Natural
based on the core objectives of
technical projects. It ensures that the Rubber policy (ASNRP) to pledge their
social responsibility and sustainable
raw materials sourced are free from compliance.
procurement adopted from ISO26000
chemicals and Substances of Very
and ISO20400 standards respectively.
High Concern (SVHC) which impact Partners are expected to ensure
It endeavours to work jointly with its
environment adversely and comply with deployment in their next tier level of their
partners to promote adherence to
all international norms and standards. respective supply chains, as applicable.
compliance standards. Till date, more
Apollo Tyres encourages its partners to than 80% of the upstream suppliers The Company initiates supplier
establish their respective environmental have signed the Apollo Tyres Sustainable assessment from time-to-time,
systems in compliance with the Procurement Policy (ATSPP) to pledge based on a criteria and frequency

Va l u e C h a i n P a r t n e r s
requirements of ISO14001 and to get their compliance. and engage jointly with the supplier
the systems certified by an accredited for a continuous development and
The code of conduct for the natural
third party. improvement in this area.
rubber supply chain addresses the
Aligning with the overall organisational
sustainability policies and objectives, Expectation from the Raw Material Partners on Supply Chain Sustainability
the Company focusses on sustainable
procurement practices to ensure a ‘More with less’ has been the mantra of the Company’s sustainability journey. Below
sustainable supply chain. To begin are the eight areas where the Company would encourage its raw material partners
with, it identified and addressed to focus on:
stakeholder needs and expectations by
ensuring no negative impacts on ESG
standards. The procurement policy was 1 2 3 4
then formulated in accordance with Use of non-fossil Practicing Target to be Optimal
the international standards and ESG based fuels sustainable water neutral/ operations
in operations consumption to water positive and practice
legislations. In addition to the techno
including the use of ensure resource of preventive
commercial aspects, sustainability
renewable energy conservation maintenance
Customers

aspects have been considered in the to lower carbon

raw material sourcing strategy and emissions
in the process of contracting for its
procurement supplies from the regular
approved sources. 5 6 7 8
Measure Minimise Seek third Commit to
The Supplier Code of Conduct requires
Scope 1,2 and 3 waste in the party assurance involve your
the supplier partners to comply with emissions and manufacturing for responsible suppliers in
all applicable environmental laws, set targets to process operations this journey
regulations, and standards, such as reduce them

59
 Apollo Tyres Ltd
Annual Report 2022-23

Green Procurement Initiatives REACH & PAH Compliance initiate joint development work
on new materials and new tyres
As a part of its green procurement Apollo Tyres and its suppliers development.
GOVERNANCE

and digitalisation initiative, Apollo ensure that the final product and
Tyres has introduced an online its raw materials conform to the • Supplier Audits
supplier portal for day-to-day REACH (Registration, Evaluation,
operational management of Authorisation and Restriction Supplier audits, assessment of the
purchasing and supplier quality of Chemicals) requirements, as supplier Quality Management
management activities. The applicable and seeks declaration from System, are conducted at the
supplier portal features various its suppliers to ensure compliance to time of selection of new suppliers
modules covering - RM Schedules all applicable requirements in supplies. and are also conducted at defined
and supply monitoring system, frequency for existing suppliers
RM Specification, Audit Report, It is geared to meet all raw material as per defined audit criteria. Such
Supplier Rating, and other quality related requirements with reference supplier audits are conducted by a
related requirements. All the to usage of PAH (Polycyclic Aromatic qualified team of trained auditors.
purchase orders are autogenerated Hydrocarbons) free materials for
supply of tyres to Europe and other The scope of supplier audits
through the SAP system and
markets. covers various elements like
ENVIRONMENT

communicated to the supplier

quality management system,
base globally through a paperless
Supplier Engagement environmental standards,
electronic medium.
occupational health and safety
Apollo Tyres engages with its standards and others as per the
The Company also promotes
suppliers in multiple ways and across Procurement Standards, Apollo
and encourages suppliers to
multiple spheres of working. Few of Tyres Sustainable Procurement
embrace environment friendly
its initiatives include Global Partner Policy (ATSPP) and Apollo
and green materials in their
meets, Sustainability workshops, Sustainable Natural Rubber
production processes including
Joint technical projects, Quality Policy (ASNRP). The Audit teams
usage of recycled products. In this
and capacity building workshops conduct compliance check as per
regard, it emphasises on usage of
with natural rubber small holders, the standard audit checklist at
environment friendly, re-usable,
producers and processors, CSR regular intervals according to the
recyclable packing materials
workshops at supplier’s manufacturing predefined criteria.
(which has minimum environmental
facilities, Safety @ supplier workplace,
impact) like returnable pallets,
business meetings, etc. Supplier audits continued in the
SOCIAL

returnable metal boxes, returnable

Upstream Supply Chain this year
metallic spools for the supply of The following are the supplier via physical audits at supplier
raw material to its manufacturing engagement framework and key workplaces and using the virtual
facilities globally. This additionally initiatives: collaboration platforms to
helps in enhanced vertical space
conduct online system audits at
utilisation in storage warehouses. • New Supplier selection
supplier end, including Gemba
The packaging of raw material
It involves stage-wise evaluation visit at suppliers through virtual
should also be “wood-free”. In
and approval process involving live videos, thereby leveraging the
addition, a supplier needs to
commercial and technical use of IT technology in the Supply
conform to the local regulations,
evaluation of the supplier Chain. Additional guidelines for
as and where applicable in each
by a cross function team of the suppliers are put in place to
country of supply.
Procurement, R&D, Plant ensure smooth conduct of the
To maximise the use of digital Technology, and Manufacturing. audit programs through virtual
information technology, it platforms.
• Joint Development Projects
encourages the use of video
Based on the audit, action plans
conferencing, telephonic Based on the voice of the for improvement are drawn and
conferencing, and other latest customer, the emerging market jointly agreed and being followed
collaborative technologies requirements and changes up with the suppliers until closure.
available to minimise the adverse in regulatory requirements,
impact on environment and the Company engages with • Supplier Performance Evaluation
promote green practices in its its suppliers or potential new
procurement activities. Supplier performance evaluation
suppliers for raw material to
is done on Quality, Delivery and

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Service performance through Apollo Champion for individuals safety, possible cost savings

Employees
rating criteria which aims at at Business Partners’ end was from public liability insurance
timely feedback to suppliers to awarded to individuals from premiums, demonstrating
improve their performance at partner companies who have gone commitment to meet legal
Apollo Tyres. the distance to support in their obligations and improving
services and supplies to Apollo reputation of the suppliers and
The same is communicated to Tyres. increasing opportunities for them
suppliers on periodic basis and to expand their business.
action plans are drawn and • Corporate Social Responsibility in
followed up with the suppliers Supply Chain The program initiative was
using the newly launched supplier continued in the Upstream Supply
portal for the upstream supply The Company continues to Chain this year with the RM
chain. conduct CSR activities at the suppliers, thereby leveraging the
premises of its Raw Material use of IT technology for a farther
• Apollo Global Partners’ Summit suppliers to support good reach in the Supply Chain.
2022 health and covers awareness
programmes such as HIV / • Apollo Natural Rubber Dirt Free
Apollo Tyres held its Global AIDS and TB Prevention and Centres

Communities
Partners Summit 2022 virtually, the ill effects of Substance
with the raw material business Abuse, covering a spectrum of Apollo Tyres has taken the lead
partners, which witnessed a participants covers Operators, in contributing to the quality
tremendous response with over Supervisors, Engineers and People improvement of Natural Rubber
700 participants joining from 24 from Plant Management. (NR) in India. The organisation
countries. has set up Dirt Free Centres
The activities are conducted by where Natural Rubber Sheets
Apollo Tyres used the platform the Procurement department, are sourced from the farmers
to stress on the important role which has been trained by and graded using international
that technology plays for the International Labour Organisation practices. The grading is done
Company, along with a clear (ILO). using back lit tabletops.
roadmap regarding the usage of
sustainable materials. The CSR activities continued in the These centres have employed
Upstream Supply Chain this year women and trained them in
The attending business partners using the virtual collaboration NR grading and provided them

Va l u e C h a i n P a r t n e r s
were also updated on the platforms, thereby leveraging livelihood. In this way, the
organisation’s vision 2026, which the use of IT technology for a domestic NR is made suitable for
has People, Sustainability, farther reach with the RM supplier critical applications and helps the
Digitalisation, Brand and partners. company in import substitution.
Technology & Innovation as the
key pillars. • Safety @ Suppliers’ Workplace • Dealer Engagement

As part of the Summit, an Apollo Tyres encourages The Company continues to

elite panel of industry leaders suppliers to follow all applicable enhance its processes to offer
discussed on the enablers of industrial practices to ensure its business partners the best-
Apollo Tyres vision for 2026 and a safe operations. The new in-class service. It has formed a
Young Leaders Panel discussed on manufacturing and information Management Advisory Committee
‘Building Sustainable and Resilient technologies can be an enabler of Business Partners with a view
Partnerships’. to make the workplace safer to gather constructive market
by building an environment feedback for improvement. To
Apollo Partner Awards 2022 were through periodic assessment of digitalise the entire distribution
presented on Apollo Emerging the prevailing safety practices value chain, the business has
Partner, Apollo Gold Partner and development of workplace created a strong IT platform to
Customers

Award for Innovation and conditions. meet the demand from Retailers,
Development, for the Quality dealers and distributors. These
Champion, for Supply Chain The initiatives aim for minimising IT platforms have significantly
Excellence, for Sustainability, for risks of downtime because of improved the efficiency and
Service Excellence and the Apollo accidents, providing a robust effectiveness of order to cash
Pillar Award to the deserving system to maintain and Process and contributed to the
supplier partners. continually improve health and simplicity of doing business.

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Annual Report 2022-23

Engaging with
GOVERNANCE

Communities

Apollo Tyres
is committed
towards inclusive
ENVIRONMENT

development and
empowerment of
its communities.
Healthcare for Trucking
Its CSR strategy Communities

focuses on
achieving
corporate goals
in alignment with
the Sustainable
SOCIAL

Development
Goals (SDGs).

The strategy is to enable inclusive

growth by building on key partnerships
and linkages to optimise existing
resources in reaching out to a greater
number of beneficiaries. To achieve
this, all CSR initiatives are delivered
through Apollo Tyres Foundation (ATF)
registered in 2008 as a Trust.

In addition to the above, there are

local initiatives under CSR that Local Initiatives
are organised in the vicinity of the
Company’s manufacturing locations
like; Watershed Management projects.

As on March 31, 2023, the Company

reached out to nearly 10 million
beneficiaries since the inception of its
CSR programmes.

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Employees
The Company has
categorised its CSR
initiatives in four core
thematic areas

Communities
Solid Waste and Sanitation
Management

01 02

03

Va l u e C h a i n P a r t n e r s
04

Livelihood for Rural Women

Customers

Biodiversity
Conservation

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 Apollo Tyres Ltd
Annual Report 2022-23

The core themes

Healthcare for
01
GOVERNANCE

Trucking Community

Goal 3
Ensure healthy lives and promote wellbeing for all

Truck drivers in India suffer from many risk of HIV infections. Under with Cataract issues with
lifestyles related health problems. HIV Awareness and Prevention Government Hospital for
Providing primary health care services programme services, ATF conducts further treatment.
to truck drivers is essential to improve awareness and sensitisation
their overall health and well-being. workshops with support of Peer For FY23, a total of 81,968
Long driving hours, alcohol and Educators (Volunteers) to bring beneficiaries were tested for
tobacco use, irregular eating schedule, about behaviour change towards vision screening, out of which
ENVIRONMENT

and erratic sleep timings not only Sexually Transmitted Infection 43,294 beneficiaries were
affect truck driver's physical health (STI), and Condom promotion. identified with refractive error
but also the emotional and mental The programme also promotes issues. Over 10,867 beneficiaries
health. Apollo Tyres is committed diagnosis & treatment, and received spectacles.
towards improving the wellbeing of its counselling through, Integrated
stakeholders. Truck drivers are the key Counselling Testing Centre (ICTC). Awareness on
stakeholders of the Company. Tuberculosis (TB)
In FY23, 48,130 beneficiaries
To address the healthcare needs of the tested for HIV. Out of which 125 Tuberculosis (TB) is the second
trucking community, the Company beneficiaries were identified leading infectious killer after
has established 32 Healthcare Centres as HIV positive. Under this COVID-19. HIV coinfection is the
in transhipment hubs spanning 19 programme, positive cases are prime risk factor for developing
Indian states, providing healthcare also linked with Anti Retroviral active TB in the high burden
facilities at the doorsteps of this Therapy (ART). Also the Company setting.
community. The programme provides established its first ART Centre
SOCIAL

healthcare services such as prevention at Vijaywada in partnership To support the Government of

and awareness of HIV-AIDS, Vision with Andhra Pradesh State AIDS India’s National Strategic Plan
care, awareness on Tuberculosis and Control Society (APSACS) during for eliminating TB by 2025,
other Non-Communicable diseases this financial year. ATF began its TB awareness
such as Diabetes, High Blood Pressure initiative in the year 2017.
and General Treatment facility. Vision ATF has partnered with the
Care Ministry of Health and Family
Welfare (Central TB Division),

Over 1.1 million Uncorrected vision contributes The Union, and USAID and
established 17 Designated
to more than 1.25 million road
beneficiaries accident deaths each year in the Microscopy Centres (DMCs) at

were outreached world. Vision related issues are transhipment hubs to provide
the common problem faced by testing and treatment facilities
through Healthcare the trucking community. Apollo for its beneficiaries. Also, ATF is
linking TB positive patients with
Centres in FY23. Tyres identified Vision Care as
a critical issue and started its Directly Observed Treatment
vision care intervention for truck (DOTs)services for effective
drivers in 2015. Under Vision care treatment in the reporting year.
The services under the service, regular eye check-up
Healthcare Initiative: In the FY23, the Company
facilities have been created in all
has established 4 DMCs in
the 32 healthcare centres. ATF has
HIV-AIDS Awareness partnership with Central TB
partnered with Essilor India PvT
and Prevention division at Hyderabad, Raipur,
Ltd (2.5 NVG), to provide low-cost
Programme Nagpur and Jalandhar locations.
affordable eye care services to
Due to the constant travel, Truck the beneficiaries with refractive For FY23, a total of 12,461
drivers have been at an increased error issue. ATF also links people beneficiaries have availed TB

64
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

testing facility, out of which 320 Interventions mechanics or owners of

Employees
beneficiaries were identified as TB small restaurant (dhaba)
positive. 85% of the total positive A. Partnership Approach and barber shop, and street
cases were linked with DOTs vendors, etc. who are based
ATF is committed to SDG 17-
Indeterminate. at transhipment hubs and
Partnership for Goals and in
remain in close contact with
the process of achieving the
truck drivers. The programme
same, it has partnered with
has mobilised over 1,000
like-minded organisations
PEs who provide voluntary
I am a truck driver and my (public and private sector)
services for the healthcare
name is Kadak Bahadur to bring about a catalytic
programme across locations.
Thapa. I was tested with impact. ATF fosters
collaborative approach for In the reporting year, 75%
Tuberculosis a year back,
the wider outreach of its increase (298,915) in the peer
which perturbed me to an
services. led outreach programme
extent that I felt that I might
compared with FY22
die. That's when I came It has partnered with State
across an outreach worker AIDS Control Society, C. Presence of All Health

Communities
from ATF, who helped me Central TB Division, Ambuja Services at Doorsteps
with free DOTs treatment Cement Foundation, Essilor (Mobile Medical Units)
for 6 months along with the Foundation, Ashok Leyland,
The Union, USAIDS, ACC As an extension to ATF’s static
nutrition support worth H Healthcare Centres, mobile
cement for implementation of
500 per month under the alternatives have continued
various Healthcare services.
Government scheme. Today to enhance the access to
I am free from TB. B. Peer Educator (PE) healthcare service for trucking
Involvement community. Mobile medical
units (Apollo Healthcare
Peer Educators, or volunteers
Non-Communicable Express) provide its services at
play an important role
Disease highways, district borders and
in creating awareness
trucking halt points. The mobile
about health services and
Based on the findings from the medical units are currently
referring the beneficiaries
32 healthcare centres, Diabetes operational at Delhi, Namakkal

Va l u e C h a i n P a r t n e r s
to Healthcare Centres for
and High Blood Pressure were (Tamil Nadu), Cuttack
availing the treatment
identified as two significant risks (Odisha) and Chhindwara
facilities. PEs are typically
that effect truck drivers. In order (Madhya Pradesh).
to address the problem, the
Company added testing facility
for both the risks. Diabetes
screening and blood pressure
check-ups are conducted across In the year 2023, under peer lead
outreach initiative, the Company
the healthcare centres.

For FY23, around 65,906

beneficiaries were screened for
engaged with LGBTQI community
diabetes out of which over 12,000 at six Healthcare Centres
were identified at risk of diabetes
and 80,141 beneficiaries were (Hyderabad, Ludhiana, Kanpur,
tested for blood pressure. Agra, Indore and Vijayawada).
This initiative envisages integration
Customers

General Healthcare and

Treatment
of LQBTQI community members as
The Healthcare Centres work peer educators with the purpose of
as a one-stop facility, providing
generic treatments for seasonal
awareness building and reaching
cough, flu, stomach dysentery and out to more beneficiaries.
other basic First Aid features to
the beneficiaries.

65
 Apollo Tyres Ltd
Annual Report 2022-23

Solid Waste Management

02
and Sanitation
GOVERNANCE

Goal 6 Goal 12
Clean Water and Responsible Consumption
Sanitation and Production

India generates over 0.16 million Tons Clean My Transport Nagar (CMTN), (ODF), total 7 ODF villages in
of waste Per Day (TPD), out of which Clean My Village (CMV), Sanitation Tamil Nadu region.
about 0.15 million (TPD) is collected, Management and End- of-life Tyres
which is approximately 95.4%. Out (ELT) projects are initiated under This initiative is a true
of the total waste generated per SPARSH initiative. representation of Public Private
ENVIRONMENT

day, 31.7% waste generated remains Partnership as the support is

unaccounted. Total outreach increased by 6.62% provided by the Government, ATF
in comparison with FY22. In FY23 and the voluntary contribution by
To address the issue of Solid Waste a total of 107,150 benefiicaries employees.
Management and supporting the were outreached through SPARSH
Clean India campaign, the Company initiatives. iii. End of Life Tyre (ELT) Play
launched SPARSH programme in Spaces
2013. This initiative is linked with SDG Services under SPARSH
The Company constantly looks
6: Clean Water & Sanitation, SDG initiative:
for methods and processes that
12: Responsible Consumption and
i. Clean My Village and help in greening the product life
Production.
Transport Nagar cycle. Recycling of used tyres is
This initiative aims at providing a critical part of the Company’s
ATF started Clean My Transport sustainability strategy. The End-
comprehensive solution for better
Nagar (CMTN) and Clean My of-Life Tyres Playgrounds (ELT)
health and hygiene which includes
SOCIAL

Village (CMV) initiatives with is one such initiative where the

proper waste management and
the objective to improve the company converts waste tyres
promoting the use of toilets.
conditions of waste management into exciting play structures.
and cleanliness of identified The Company has constructed
trans-shipment hubs and villages total 11 ELT playgrounds so far,
SPARSH stands for: in India. Under this initiative basic positively impacting over 7,000
services like door-to-door waste beneficiaries.

S
collection, cleaning of roads/
Segregate Waste lanes, segregation of waste,
composting from wet waste

P
and awareness generation are
provided to the community.
Practice Composting
ii. Sanitation Management

A Awareness Generation
With a view to provide access
to sanitation, the Company has
constructed toilets with bathing
For FY23, a total
of 965 metric
R
spaces for the underprivileged
Reduce-Reuse-Recycle communities around Chennai, tonne (MT) waste
Chinnapandur and Limda was collected. Out
S
manufacturing locations. In the

Safe Sanitation
reporting year, the Company of which around
has constructed 113 toilets with
bathing facilities, benefitting
9.5 % wet waste

H was collected.
2,642 people and declared 1
Hygiene for All village Open Defecation Free

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Livelihood for Rural

Employees
03
Women

Goal 1 Goal 5 Goal 8

No Poverty Gender Equality Decent Work and
Economic Growth

Programme Navya, a livelihood Beneficiary Testimony:

initiative for rural women aims at
providing skill building and income
generation opportunities at the
doorsteps of the beneficiaries. The
programme is aligned with SDG1- (No

Communities
Income generated from Owing to my husband’s
Poverty), SDG5-(Gender Equality)
and SDG8-(Decent Job Creation and
being a part of this unit alcoholism, the family was
Economic Growth). (mushroom cultivation) financially strained. SHG
has been most useful for provided me a loan of
Under Navya, women are trained paying the school fees H 10,000/-. I used the amount
in agriculture and non-agriculture of my children who now for repairing my husband’s
activities such as rubber sheet making, attend private school. I feel broken three-wheeler to
apiculture (honey production),
proud about being able to restart income generation
khakhra making, tailoring, organic
contribute in this way to from it. This worked as a
farming, upcycling products
from waste, livestock care and
the household. turning point in my life.
management and others for income Usha, Nivedhyam - Geethaben Shantilal Parmar,
generation.
Mushroom Cultivation, SHG Leader and Role Model,
Post training women are further linked Vazhoor, Kottayam Narmadapur, Baroda

Va l u e C h a i n P a r t n e r s
with financial institutions for credit
support and market linkages are also
established to promote the business
of the women. The programme has
established linkages to leverage
government schemes.

There has been an increase in the

women outreach by 85% (1,579
women) in comparison with FY22.
The fiscal also saw a 53% (1563
women) increase in trained women
participating to start income
generation activities as compared
with FY22.

Total 5,100 women were linked with

various Government welfare schemes
Customers

and have availed benefits worth J

4.05 crores.

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 Apollo Tyres Ltd
Annual Report 2022-23

04 Biodiversity Conservation
GOVERNANCE

Goal 13 Goal 14
Climate Action Life Below Water

Biodiversity Conservation is a global To further mitigate climate change, project also engages with farmers for
theme for the Company, wherein afforestation projects are being providing agriculture interventions for
it has undertaken projects in India, implemented in Tamil Nadu and enhancing soil productivity. In Gujarat,
Hungary, and the Netherlands. In Gujarat. a total of 25,000 sq. Ft area of land
Europe, Apollo Tyres has undertaken is utilised to plant 10,000 trees of 84
Under the afforestation initiative in
ENVIRONMENT

two projects at Stadbeek in Enschede, varieties of species under Miyawaki

The Netherlands and Conservation of Tamil Nadu, plantation of 3.5 lakhs afforestation project by ATF.
Bukk National Park, Gyöngyöshalász, teak trees are being maintained. The
Hungary.

As part of ACE initiative in

Netherlands, the employees at the
Amsterdam Office order fruit basket
from ’Fruitful Office’, a Company
that delivers fresh fruit to offices. For
every basket ordered they plant one
fruit tree in Malawi in Africa to fight
deforestation and provide additional
income to the community by sale of
fruits. This initiative has been in place
SOCIAL

since Oct 2022 and is aligned with

SDG 13 (Climate Action).

In India, mangrove conservation

is a key initiative by the Company
implemented in, Kannur district,
which is the largest Mangrove village
in Kerala with the aim to restore the
endangered mangrove species Under
this initiative, ATF conducts awareness
sessions for local communities
addressing the threats to mangroves,
followed by setting up of mangrove
nursery driven by community -based
initiatives.

For FY23, a total of 5,954

beneficiaries were outreached
through various awareness activities
under Mangrove Conservation
initiative.

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Employees
Local Initiatives

Goal 6:
Clean Water and Sanitation

Local Initiatives are designed based The main objective of this At Baroda location, ATF supports
on the local requirements of the initiative is improving the the Gujarat Government’s Pond
communities. These initiatives are condition of water bodies, deepening initiative under the
implemented in the communities restoring, and enhancing the aqua Sujalam Sufalam Jal Sanchay
which are in a radius of 35-45 km of the biodiversity. A total of 14 ponds, Abhiyan (SSJA). Under this

Communities
Company’s manufacturing locations. covering an area of 3 lakh square scheme, ATF has restored one
Details of such initiatives are: feet have been restored through pond in Antoli village of Waghodia
pond deepening, desilting, block in Baroda district. A total
India Initiatives: bunding and maintenance of 303 households with 1,292
activity. Around 192,228 beneficiaries directly benefitted
Water Conservation project is an
beneficiaries have availed the with pond restoration activity.
integral part of this initiative and
benefits from the restored ponds.
is mapped as per local community
requirements. There are two
projects implemented under water
conservation category:

a. Access to purified drinking

water:

Through this initiative

Va l u e C h a i n P a r t n e r s
beneficiaries have access to
purified drinking water. The
Company has set up four RO
drinking water plants at plants at
Orgadam village, Chennai, Tamil
Nadu and Chinnapandur village,
Chittoor, Andhra Pradesh. Around
1,591 households and over 6,396
beneficiaries have benefited.

b. Eco restoration of ponds:

The Company has mapped

the condition of water bodies
through research studies in
the communities around its
manufacturing locations. Based
on the findings, the Company has
Customers

restored few ponds in Chennai,

Tami Nadu, Limda, Gujarat and
Perambra, Kerala.

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 Apollo Tyres Ltd
Annual Report 2022-23

Apollo Vredestein in Germany

has taken various local initiatives
linked with marketing campaigns
GOVERNANCE

such as: Fuel up and Donate where

the consumer gets a fuel voucher
offered in exchange of old tyres
(ELT) (worth 40 euros) which
he/she chooses to donate. The
Company matches value of the
voucher for charity purpose.

Additionally, every quarter the

Company engages its employees
in endurance-based campaigns
to raise funds for the treatment
of kids suffering from cancer.
The Company matches the funds
ENVIRONMENT

raised by employees.

Apollo Vredestein recognises

road safety as an important
area of focus for its consumers.
The Company sponsors monthly
features stories focusing on road
safety in Auto Motor Sports
magazine.

Philanthropic Initiatives

The Company also supports the

underprivileged and deprived
communities by undertaking
philanthropic initiatives through
SOCIAL

Taru Foundation. The initiative

In addition to watershed campaign encouraged employees ranges from providing education
management initiatives in India, to pack donations into shoeboxes support to underprivileged youths
Europe locations also organised which were then given as to providing healthcare support
various community based local Christmas presents to children and distributing ration to the
initiatives: in need. A total of 44 gifts were underserved community.
donated in this initiative by our
Europe Initiatives Hungarian employees. Engagement
In FY23 the Company introduced At Hungary plant, periodic To engage with stakeholders
an employee led initiative, ACE blood donation camps were and promoting partnership, the
(Apollo Tyres CSR in Europe) organised and over 175 employees Company had launched campaigns
focusing on volunteerism. volunteered for blood donation. focussed on our core themes:
At the Enschede and Amsterdam Apollo Tyres, via its Vredestein 1. Partnership for Action
facilities a 2 week-long charitable premium tyre brand, has Against Tuberculosis (PAcT)
drive was organised, called as collaborated with Manchester Campaign
ACE-ing it for Voedselbank, United and launched a
which witnessed a participation programme of ‘Soccer School’ The Company supports the
of 770 employees in the drive days across Europe in 2023, Government’s TB elimination
and donated around 23 crates providing children and young programme and organised
of non-perishable food items to people with exclusive coaching Partnership for Action against
underserved communities. sessions that encourage exercise Tuberculosis (PAcT) event
and foster personal development. aligned with ‘Azadi Ka Amrit
In Hungary, employees engaged Mahotsav’ (75 years of India’s
The ‘Soccer School days’ coaching
in a ‘Shoebox’ campaign organised Independence). This year
sessions will be delivered in Italy,
by Hungarian Baptist Aid. The marks its 6th edition.
Poland and the Netherlands.

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Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

work of eight Change Agents

Employees
who have made a difference
ATF has sponsored 75 TB patients for in their families and working
providing nutritional support. Dr Mansukh as catalysts for change.
In the past five years the
Mandaviya, Minister of Health and Family Company has felicitated the

Welfare and Chemicals and Fertilisers, outstanding work of overall

40 rural women.
Government of India distributed 3. Environment and Nature Quiz
nutritional baskets to 5 TB patients who
To create awareness on
are sponsored by Ni-Kshay Mitra Apollo Environment Sustainability,
Tyres Foundation, under the Pradhan ATF organised an
Environment and Nature
Mantri TB Mukt Bharat Abhiyaan. Quiz competition, featuring
participation of 44 students
from five coastal states

Communities
(Gujarat, Maharashtra,
Tamil Nadu, Kerala, Andhra
Pradesh) of India.
The Honorable Minister of 2. Ek Naam Campaign - Edition-5 Impressions
Health and Family Welfare
and Chemicals and Fertilisers, To promote the livelihood Green Championship Award 2022
Government of India also of the rural women, ATF
flagged off 75 trucks with TB organised the 5th edition of The Company’s Chennai plant
messages facilitated by ATF. ‘Ek Naam’, a social media was awarded with the Green
These trucks would travel campaign. To celebrate Championship Award from Tamil
across the States and will International Women’s Nadu state Government for its
carry the message right to the Day, ATF felicitated and environment and sustainability
general publics. recognised the outstanding promotion initiatives.

Va l u e C h a i n P a r t n e r s
Customers

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 Apollo Tyres Ltd
Annual Report 2022-23

Performance against Sustainable Development Goals

GOVERNANCE

SDG- 17:

Partnership for the Goals

Refers to the cross sector and cross collaboration. The Company works in partnership
model with like-minded organisation for wider outreach and impact.

SDG Goals and Target Mapping

Sr.No Initiative Name Linkage with SDG

Healthcare Goal 3: Good Health and Well Being

01
for Trucking
Community
ENVIRONMENT

Solid Waste Goal 6: Clean-water-and-sanitation

02
Management &
Goal 12: Responsible Consumption and Production
Sanitation

Livelihood for Goal 1: No Poverty

03
Underprivileged
SOCIAL

Goal 5: Gender Equality

Women
Goal 8: Decent Work & Economic Growth

Biodiversity Goal 13: Climate Action

04
Conservation
Goal 14: Life Below Water

Local Initiative (Eco Goal 6: Clean Water & Sanitation

restoration of ponds)

Access to purified
drinking water

The Company also undertakes philanthropy initiatives to provide education support to

Philanthropy underprivileged youths and girls, ration support to homeless people to eradicate hunger
Initiatives: and poverty and healthcare support to disadvantaged communities. These initiatives
are linked to SDG: 4 Quality Education and SGD 3: Good health and well being

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Overview Leadership Report Discussion and Analysis Reports Statements

Employees
SDG target Performance against the target (cumulative)
End the epidemics of AIDS, Total 11.60 million Total 8.3 million people outreached
tuberculosis, malaria and beneficiaries by 2026 through Healthcare Programme for
neglected tropical diseases other Trucking Community
communicable diseases.

Communities
Achieve access to adequate and Total 11 villages Total 7 village panchayats Over 6.97 lakh people were
equitable sanitation and hygiene for ODF by 2026 were declared Open outreached under waste
all and end open defecation. Defecation Free (ODF) management initiative

Achieve the environmentally sound Total outreach Total 11,176 metric ton Total 11 End of Life Tyres
management of all wastes. through awareness (MT) waste was collected. play spaces constructed.
activities to 950,000 Out of which 1,089 MT Nearly 1,621 waste tyres
beneficiaries by 2026 was biodegradable waste, were recycled
and 10,123 MT was non-
Substantially reduce waste biodegradable waste.
generation through prevention,
reduction, recycling, and reuse.

Eradicate extreme poverty for all Total 20,000 Reached out to over 17,000 Over 9,500 women
people everywhere. Ensure women’s women in financial rural women are directly involved in
full and effective participation and and social inclusion decision-making process.

Va l u e C h a i n P a r t n e r s
equal opportunities. decision by 2026 Over 14,000 women have
received income generation More than 100 group
training enterprises established,
Promote decent job creation, Total women in
engaging over 3,000
entrepreneurship. income generation Over 8,600 women are women directly.
15,000 by 2026 involved in income generation

Strengthen resilience and adaptive Total awareness 350,000 teak trees are Under Mangrove
capacity to climate-related hazards. outreach to 400,000 planted under Afforestation Conservation Project,
Improve education, awareness-raising on beneficiaries on project at Tamil Nadu region. covering 10.4 acres of land.
climate change mitigation, adaptation Environment
conservation by 2026 Under Miyawaki project total Over 2.33 lakh beneficiaries
10,000 trees of 80 plant species outreached from Biodiversity
are planted in Gujarat region. Conservation initiatives

Protect and restore water-related Total 530,000 15 ponds, covering area of over 3.5 lakh square feet were
ecosystems, including mountains, forests, beneficiary outreach restored. Over 1.94 lakh people are benefitted from restoration
wetlands, rivers, aquifers and lakes by 2026 of the ponds

Three RO drinking water plants Over 1,591 households

Customers

Achieve universal and equitable access to

installed at Chennai and and more than 23,000
safe and affordable drinking water for all
Chinnapandur location beneficiaries benefitted
with the facility

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Annual Report 2022-23

The People Pillar

GOVERNANCE

18,850
OVERVIEW for a Company towards economic
growth, productivity, and profitability.
Apollo Tyres Vision - Driving Progress, Apolloites pursue performance
Together - and people are an integral excellence through shared Human Capital at
part of the process. Human capital goals, leadership, collaboration, Apollo
is a crucial intangible asset for any open communication, clear role
business, and it refers to the collective expectation and a strong sense of
knowledge, skills, abilities, and accountability and trust.
experience of the people working
ENVIRONMENT

APOLLO ONE FAMILY

SOCIAL

The Company’s core values, make it The Company takes responsibility equity. The Company and its people
unique and distinctive. Apolloites are for enabling excellence and are committed to follow its passion,
strongly driven by global value of ‘One embedding sustainability in its core vision, and values to reach greater
Family’ that empowers them with a values to ensure economic viability, heights.
sense of purpose at the workplace. environmental protection, and social

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Employees
WE BELIEVE IN DIVERSITY
AND INCLUSION 91% 90%
Apollo is home to a multi-cultural, Of Apolloites believe that Of Apolloites in India voiced
multi-generational (balanced they treat each other with that they are treated fairly
representation of Baby Boomers, dignity and respect regardless regardless of their gender
Gen X, Gen Y and Gen Z) and gender of their personal identities
diverse workforce.

44 90% 90%

Communities
Nationalities Of Apolloites voiced Of Apolloites in India voiced
that Apollo provides a that they are treated fairly

8%
working environment free regardless of their sexual
of discrimination and orientation
Gender diversity harassment

4 Apollo tyres has established an Internal Compliant (IC) mechanism to prevent

Generations adverse consequences of discrimination in accordance with the POSH Act. The
Company conducts IC members meeting quarterly and maintains various norms
The Company is committed to while handling POSH complaints.
nurturing Diversity, Equity, and

Va l u e C h a i n P a r t n e r s
Inclusion in the workplace. Apollo To ensure effective abolition of child labour and assess compliance on human
Tyres’ culture provides a safe work rights, Internal Audit team conducts audit across the Company’s manufacturing
environment, free from discrimination facilities.
and biases. The Company is committed
to its global target of 12%, by FY26 for
gender diversity. It demonstrates its
core value of ‘One Family’ with vigour
and passion. Like a unified family, its
people stand together during adverse
situations, learning from failures and
celebrating success.

The Company believes that effective

and active listening to employee
creates a positive workplace culture
and can also help in building trust,
forging strong relationships and
Customers

resolving conflicts. It seeks continuous

feedback from the workforce, and this
is what the employees have to say:

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 Apollo Tyres Ltd
Annual Report 2022-23

Events celebrating Diversity & Inclusion at Apollo

International Women’s Day We celebrate together Paris Marathon

GOVERNANCE

#WomenAtApollo are the centrifugal In FY23, Apollo Tyres organised The streets of Paris turned blue
force behind the Company’s growth several onsite celebratory events with Vredestein flags, for the 20 km
and success. In March 2023, the such as Family Day, Baisakhi, Diwali Paris Marathon. Apollo Tyres was
Company celebrated the IWD, celebrations and so on, reinforcing its represented by 51 members from
strengthening its commitment to ‘One Family’ value and the culture of across Europe.
gender diversity. ‘Celebrating Together’. The Company
invites employees and their extended
families in all such events.
ENVIRONMENT

Apollo Amsterdam office celebrated

the first day of spring with a potluck
culture lunch, where they got food
from India, China, Turkey, Vietnam,
Macedonia, Germany, Netherlands,
Qatar, and Indonesia.
New Delhi Marathon
Apollo Women in our Plants
The Apollo Tyres New Delhi Marathon
The Company’s Limda plant set was held on February, 2023 with
an example in the fiscal by hiring a massive participation of 16,000
SOCIAL

18 women, from Gujarat and Bihar runners including employees in the Full
respectively for the 2-wheeler plant. Marathon, Half Marathon, 10K and 5K
Steps have been taken to ensure a Runs. The event was flagged off by the
safe working environment, ensuring the Company’s Chairman, Mr. Onkar
mentorship, training and capacity Kanwar and President (APMEA), Mr.
building for their skill enhancement. Satish Sharma. The event also saw the
Diwali Celebrations at our offices presence of Olympic Champion and
World Record Holder, David Rudisha
as well as Khel Ratna and Padma Shri
Awardee, Anju Bobby George who
motivated the winners to ’Go The
Distance’ and perform at their best.

Christmas and Pongal

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Employees
We play together | 2022 We are ‘One Family’ Place to Work® Institute (India).
Unstoppable Cup The Company champions ideas that
The Industrial relations have been
inspire it to think big, be brave and
After two years of pandemic induced cordial, and all statutory compliances
challenge the ordinary. It is committed
disruption, it was time for people to have been complied on time. Regular
to fostering an inclusive culture that
again gather as ‘Apollo One Family’ interactions have been conducted
unites employees, business partners,
and celebrate the achievements with all stakeholders, management,
stakeholders and the community
and milestones, along with the employee representatives and the
together, towards building a
Chairman’s birthday. During the trade union leaders to improve
responsible and sustainable business
week, the Company also hosted productivity, cost-reduction, and the
that contributes to the society.
the Unstoppable Cup, Apollo’s own working environment of the plant.
much celebrated and anticipated Various forums enabled effective Trust is the main ingredient in building
cricket tournament, where the joys resolution of employee grievances and a Great Place to Work. It establishes a
of teamwork and camaraderie are queries. In-house training programmes positive work environment, facilitates
celebrated on the field. were conducted to facilitate overall collaboration and teamwork among

Communities
safety and health. Many employee employees.
welfare and engagement initiatives
were rolled out throughout the
fiscal like birthday celebrations,
family engagements, factory day
celebration, local festival celebrations,
sports activities, etc. across all Certified as a Great Place
locations. These initiatives helped to Work 2023 in India,
the Company maintain conducive Apolloites are more likely
relations and kept the employees to feel comfortable sharing
motivated during the fiscal. ideas, taking risks and
75 Years of Enschede Plant collaborating on projects,
As Apollo Tyres’ manufacturing plant in OUR STRATEGIC FOCUS making Apollo a progressive
Enschede, the Netherlands, completed AREAS and successful organisation.

Va l u e C h a i n P a r t n e r s
its 75 years, it celebrated this great
milestone with much grandeur and APOLLO ’PRIDE‘
fervour. It celebrated the diamond
jubilee with the employees in Apollo Tyres is a leading player
Enschede, the Grolsch Veste. in the tyre industry and with its
distinguished reputation, it has
managed to attract talent in the
industry in the past years. However,
with a fast moving and competitive
business landscape, a strong employee
In a global multinational value proposition (EVP) is what will
Company like Apollo Tyres, make the Company unique and
we get to work with people distinctive from its competitors to
from different cultures attract and retain talent.
around the world. Along
with working on projects Apollo Tyres as Great Place to Work
with diverse teams, we also (GPTW) | India
Customers

celebrate different festivals

For the 10th year in a row, Apollo
together. This testifies that
Tyres has been certified as a
we truly live by our ‘One #GreatPlaceToWork by the Great
Family’ value.

Ravi Shingari, Group Head,

Corporate Taxation &
Accounts

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 Apollo Tyres Ltd
Annual Report 2022-23

Apollo is seen as an organisation that People Strategy, Work Environment, fresh talent to be leaders of tomorrow
values: Talent Acquisition, Learning, Diversity, through Apollo Summer Internship
Equity & Inclusion, Well-being and programme, providing opportunity
GOVERNANCE

much more via a vigorous process to interns from premier management

of data submission and audits. All institutes. (e.g., IIM, IIFT, NITIE,
Fairness
participating organisations receive NMIMS, MICA, DMS IIT, IRMA). The
objective insights into their employee interns work on projects closely with
conditions via a detailed feedback the leadership team across functions
and benchmark report, and only a few like sales, marketing, supply chain
Credibility qualify for the certification after a management and finance.
rigorous process of four months.
Here’s a glimpse of interesting
exchange with MBA students at
the Business Networking Event of
The Company is
Respect
& Care University of Amsterdam - Amsterdam
proud to be certified Business School.
Pride
as Top Employers
ENVIRONMENT

in Singapore and in
Apollo Tyres features in the list of
‘India’s Finest Workplaces’ the UK, for 2023.
Apollo Tyres was featured in March
2023 in ET Now’s ‘India’s Finest These certifications reinforce the
Workplaces’ - a series that highlights Company’s commitment to its
organisations' work environments and people and business and display
best practices adopted to improve its dedication of creating a better
the work culture. It encapsulates workplace culture through the best-in- Participation in a job fair in Hungary,
interaction with important class HR policies and people practices. attracting top talent.
stakeholders and employees from
the Company, featuring shortlisted In Europe, in the Finance and Supply
organisations as the India’s finest
SOCIAL

Chain Management functions, the

companies to work for. Company has launched different
training programmes for recent
Driven by its value of ‘One Family’,
Attracting Talent graduates to gain experience. The
the Company creates and nurtures an
trainees participate in rotating
inclusive culture that brings its people, The Company’s talent acquisition assignments and are gradually
partners, and community together. It approach focusses on developing allocated more responsibilities before
takes immense pride in formulating a strong organisational brand and they take up a permanent job role in
and practising some of the industry’s culture. It focusses on attracting the organisation.
most progressive and people-friendly
policies keeping in mind the overall
well-being of the people.
Employees Workers Total Headcount
Headcount
Apollo Tyres as Top Employer certified Male Female Total Male Female Total Male Female Total
| Singapore and UK Permanent 3,749 294 4,043 6,091 197 6,288 9,840 491 10,331
Other than
The Top Employers Institute is the Permanent
109 21 130 8,101 288 8,389 8,210 309 8,519
global authority on recognising
No. of Differently abled people - 18
excellence in people practices. To
be eligible for the certification, the
Company must have advanced Employees Employees Workers Total Headcount
HR practices and at least 2,500 & Workers
employees globally. by Age Male Female Total Male Female Total Male Female Total
Group
The survey covers six HR domains < 30 Years 623 71 694 1,150 51 1,201 1,773 122 1,895
consisting of 20 topics including 30-50
2,111 713 2,824 3,589 107 3,696 5,700 820 6,520
years
> 50 Years 482 43 525 1,352 39 1,391 1,834 82 1,916

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

< 30 Years 30-50 years  > 50 Years Regions (in %)

Employees
Male Female Total Male Female Total Male Female Total
0.13
Number of Employees
320 469 58 62 13.78
hired
270 50 411 58 6 84.25
1.84

Turnover by Age Employees Workers Total Headcount

Group Male Female Total Male Female Total Male Female Total
< 30 Years 155 43 198 218 21 239 373 64 437
30-50 years 316 37 353 145 14 159 461 51 512
> 50 Years 39 7 46 93 7 100 132 14 146
APMEA EUROPE
Corporate ASIA Americas

GLOBAL TALENT internal employees based on their are taken through psychometric

Communities
assessments, using the Company’s
MANAGEMENT performance and potential and helps
to build a strong bench of talent that partner Lumina SPARK. Lumina
Apollo believes in putting its people can be called upon in the future to SPARK provides the Company with
first, along with empowering them take on important roles within the accurate, personalised portraits of
with opportunities to grow. Its talent organisation. the employee, focussing on increased
management framework ensures that self-awareness and practical
Apolloites are provided with adequate development points to assess and
opportunities to learn and grow not The potential mapping is intricately improve communication, teamwork,
only in their roles but across functions linked to the Apollo Leadership and leadership.
and geographies. Competency Framework. As the
Company moves forward in achieving Through Apollo Laureate Leadership
Through its new internal career portal, its vision of ‘Driving Progress, Development Flagship programme,
vacancies and career paths are better Together,' it is committed to develop the identified leaders of tomorrow
visible and accessible. This has led to a rich talent that empowers its people strengthen Apollo leadership
an increase of internal career moves. to evolve, ensuring that the existing competencies, enabling them to

Va l u e C h a i n P a r t n e r s
employees are fully equipped to grow achieve and unleash their full potential
Its internal mobility opportunities in their careers at Apollo Tyres. and positively impacting business
ensure that its current talent pool outcomes.
is rotated into roles where they can Based on inputs from the top leaders
further add value through acquired across the organisation and external
experience and mentorship to experts on competency frameworks, Apollo leadership competency
younger generation in the workforce the Company has carefully crafted framework
across regions and functions. The a tailor-made leadership framework
multigenerational workforce model designed to prepare the next
OWNERSHIP &
within the Company has proven generation leaders to succeed in this ACCOUNTABILITY

successful over the years as it ever-evolving business world. Driven

brings vivid perspectives, skills and by ownership and accountability, it INNOVATION &
DRIVE FOR
GROWTH &
experiences to the table which helps aims to build leadership behaviour at CREATIVITY
VISION RESULTS

it thrive in today’s rapidly changing all levels. Through an entrepreneurial

PURPOSE

GOALS

business environment. culture, the Company wants to

build an innovation-driven mobility
In addition, to ensure continuity in company that is underpinned by EMOTIONAL
VALUES BUILD
INTELLIGENCE
leadership and operations within WINNING
Customers

technology and steered by the TALENT

Apollo, the Company has rolled out winning talent of Apollo Tyres.
APEX (Apollo People Excellence), STRATEGIC
PLANNING &
which encompasses the 9-box In this process, top ~30% of the DIRECTION

grid, critical role identification and reviewed talent is assessed for future
succession planning. This exercise potential mapping, via psychometric
involves identifying and developing analysis. Selected employees

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 Apollo Tyres Ltd
Annual Report 2022-23

Designed for Heads of Departments/Functions in

ESTABLISHED LEADERS PROGRAMME the region or a corporate sub-function

01
More than 80 leaders
GOVERNANCE

Program includes Self-discovery with Lumina

SPARK, customised content from MIT Sloan
impacted globally Management, and interactive webinars with
Laureate alumni and senior leadership

Designed for middle Managers

EMERGING LEADERS PROGRAMME

02
Program includes Self-discovery with Lumina
More than 80 leaders SPARK, customised content from MIT Sloan
impacted globally Management, interactive webinars with Laureate
alumni and senior leadership, and a mentorship program

03
FUTURE LEADERS PROGRAMME
More than 80 leaders
impacted globally

REWARDS AND RECOGNITION The Company celebrates long service of its for employees to learn, grow, and
employees achieving key milestones such develop new skills.
ENVIRONMENT

Apollo Tyres takes an integrated as 5 years, 10 years, 15 years, 20 years,

approach to compensate employees both and so on, to recognise and reward the To sustain the Company’s competitive
monetarily and non-monetarily through long-term contribution and commitment edge, it is crucial to develop and nurture
rewards and benefits like, flexible working of the employees towards the growth and a learning organisation where people
hours, recognition towards significant success of the organisation. are not just provided with opportunities
contribution, and career development but are deeply entrenched in learning
opportunities. This approach helps for both their personal and professional
the Company in attracting, retaining, growth and development. In FY23,
and motivating talent by offering the Company broadened its learning
comprehensive rewards package. and development opportunities across
A sense of happiness you feel various modalities under Apollo Virtual
The Company strongly aligns rewards when you are recognised for Academy and started its journey
to the performance outcomes, through your work makes you realise towards building a self-learning culture,
a merit-based pay system. This helps in your self-worth. At Apollo encouraging Apolloites to take charge
incentivise and reward the top performers, Tyres, we have Chairman’s of their self-development. Key learning
while also encouraging continuous Recognition Awards which are themes were identified as focus areas
SOCIAL

improvement and development. that guided the development of learning

given every year and recently
initiatives globally.
To foster job satisfaction, motivation, when I was nominated for
loyalty, and a positive workplace culture, the ‘Role of Honour’ award, I To provide an excellent start to the
Apollo Tyres actively considers both felt a sense of pride to be an new joiners, it has introduced a new
extrinsic values (e.g., Material objects and/ Apolloite. induction programme, in which new
or payments) and intrinsic values (e.g., employees learn about the Company’s
Global mobility opportunity and career Aparna Venkatesh Babu, history, purpose, values, product, and
opportunities) in the reward framework. Associate Manager, PCR management.

Global recognition initiatives also align Technology, Chennai Plant

with Apolloite’s journey in the organisation,
focusing on Performance (Roll of Honour APOLLO TYRES - A LEARNING
and Chairman’s Employee of the Year), ORGANISATION I am fairly new to the Apollo
Long Service (Apollo Pillars), Appreciation family and my experience so
(Recognition Badges), and Celebration The Company is rigorously working
far has been accelerating. I
(Chairman’s Recognition Week). towards making Apollo Tyres a learning
organisation. It strives to achieve an
come from a non-corporate
In FY23, a significant percentage of the improved work culture that harnesses culture and it’s new to me. But
employees have been recognised globally each employee’s skill set, encouraging I have been closely mentored
with over 20,000 badges exchanged and cultivating an innovation mindset and guided by leaders to
during Chairman’s Recognition Week. that is at the core of its corporate shine and grow. Today I am
Additionally, recognition activities such identity. It gives importance to continuous a proud MC and manage all
as Sponteneo and Wall of Fame also learning and development at all levels of
took place at the local level, recognising events in the Apollo House.
the organisation and creates a culture
the contribution and performance of that supports ongoing growth and Harnoor Chana, Associate
Apolloites across manufacturing locations. improvement. This helps the Company is Manager, Administration
building talent by creating opportunities

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Employees
Goal A Learning
Organization
Functional
Strategy Self-pace learning Self Development
Development

354,577
Global Strengthening Business & Functional
Focus Areas
Compliance Leadership People Skills Skills

Powered by Percipio & Partners Man hours training

Support
Regional Training and Learning Initiatives in FY23

Global Compliance provides Apolloites with the This series also enabled global peer-to-

Communities
opportunity to assess their leadership peer interaction and learning across
As Apollo Tyres expands its global capabilities against a normed leadership levels, supporting the
footprint, adhering to local population, and based on their learning journey of truly global and
legislations and business practices competency level, access personalised multi-generational employees.
becomes very crucial. To facilitate the learning content.
Company’s growth in new markets, Functional Skills
the Apollo Global Code of Conduct Additionally, local, and regional
has been strengthened in the last year leadership development programmes Given the ever-evolving business
with sub-pillars of the code developed such as the Evolve program at the landscape, functional learning was
for Apolloites in key locations outside Limda plant and the High Impact also identified as a focus area for
of APMEA. This year, additional Excellence Program in EU also took Apollo Tyres to ensure Apolloites
modules on ethical dilemmas were place with a focused population develop the necessary skills and
also introduced, to ensure that of future leaders, driving the knowledge to stay competitive in
employees increase their knowledge development of Apollo’s collective their respective fields and perform
on integrity, business ethics and social leadership for the future. effectively.

Va l u e C h a i n P a r t n e r s
responsibility. Apart from specific functional training
Business & People Skills
The Company rolled out refresher (e.g., Procurement, R&D, Digital IT
training for all global employees Based on the research from the World etc.), the Company has also launched
with support of compliance team Economic Forum (WEF), the landscape the very first digital training of Apollo
achieving a significant percentage of of learning and work is changing: 50% products through Apollo LXP – this
participation across the business. of employees will need reskilling by enables efficient training on products
2025, and 94% of business leaders also for the sales and marketing teams
Strengthening Leadership expect employees to learn new skill globally through a shared knowledge
on the job. Bringing these statistics base of Apollo products. In addition,
Leadership development is not together with Apollo’s ambitious the training was also extended to
only a part of succession planning business targets, it is important for Apollo R&D globally, to further the
in the Apollo talent management Apolloites to not only be continuously understanding of current products
process, but it also takes place across learning on the job, but also develop as part of the innovation process for
leadership levels regionally and locally. a hunger to learn beyond what future product pipeline.
This helps to build organisational they need today and prepare for a
capabilities, enabling Apolloites to challenging tomorrow. The final highlight of the fiscal was
adapt to changing business needs, the global Apollo Total Quality
Customers

new opportunities, and competitive To support the goal of building a Management (ATQM) training that
pressures. learning organisation, the Company was launched for all employees.
has revamped its learning library Through this training, Apolloites
To facilitate self-paced learning and in alignment with the WEF’s Top 10 were encouraged to adopt the ATQM
self-development, Skills Benchmark skills of 2025. In addition, the Expert framework in their everyday approach
of leadership competencies and Speaks series was developed to bring to work, adding to the overall
capabilities were made available in an external perspective on key effectiveness and efficiency of Apollo
to Apolloites through the internal learning topics identified through Tyres as an organisation.
learning platform, Percipio. This partnership with Lee Hecht Harrison.

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 Apollo Tyres Ltd
Annual Report 2022-23

In FY23, the Company widely focussed the platform to either apply for an EMPLOYEE ENGAGEMENT
on delivering impactful functional internal job posting, and/or, refer
learning journeys that are in line potential candidates for an open role In today’s competitive environment,
GOVERNANCE

with the business needs such as Key within Apollo Tyres. Once a candidate employee engagement has emerged
Account Management and Advanced has been confirmed for a role, the as one of the most important drivers
Negotiations for senior Sales paperless onboarding process is then of business success. High employee
Managers. initiated through the same platform. engagement promotes the retention
In the second half of FY23, multiple of talent, fosters customer loyalty,
Learning Support Network job requisitions were created with improves organisational performance
more than 50 candidates successfully and stakeholder value.
To increase access to learning via the
onboarded through the expanded
internal learning platform, learning This fiscal has seen the launch of the
platform.
management was democratised Company’s very first Apollo Global
to expand on internal capability In the Performance Management Ideathon where Apolloites were
in driving learning across the space, the Company launched the invited to share transformative ideas
organisation. This enabled several Apollo leadership competency that could help Apollo anticipate and
other learning journeys to be launched assessment for all managers and solve future challenges. This ground-
and managed on the ground, specific up initiative provided a safe space to
ENVIRONMENT

above in the last year. With the

to the local/regional level needs. clarity and alignment of performance engage with and listen to Apolloites
expectations through this exercise from across functions within the
Overall, it was a great learning year organisation and roll out ideas that
that sets measurable goals and
for Apollo Tyres with a 5% increase are aligned with the business goals.
objectives, the Company fosters
above industry benchmarks of learning
a high-performance culture and
engagement with Apolloites. The The Company also launched its
roadmap for achieving excellence
overall engagement on learning and second edition of the Global Employee
within Apollo Tyres.
self-development is further validated Engagement Survey, Apollo Voice.
by the exponential increase in learning The most recent addition to round the It recorded a 90% participation rate
hours clocked on Percipio, by Apollo year off saw the launch of the first which reinforced the One Family value,
learners, from 1,531 hours in year FY Apollo Employee Self-service (ESS) and strongly reflected that Apolloites
2021-22 to 36,045 hours in FY23. portal that embraces the One Apollo are not only empowered, but trust
experience with web and mobile that no consequences would come
HR DIGITALISATION application access across 27 countries. from sharing their feedback openly.
SOCIAL

The pandemic has shown us how Apollo ESS has been designed to
digitalisation is essential for empower Apolloites with a more
businesses to stay competitive in convenient, flexible, and efficient way
today’s fast-changing business to access HR services and information,
environment as it enables thereby driving accountability in
organisations to become more individuals and a more productive
efficient and effective. In fact, workforce overall.
digitalisation has been accelerated
By embracing digital technologies,
across businesses in the past two years
Apollo can unlock new opportunities
– this is no different at Apollo Tyres. In
and drive growth and innovation in the
the last year, the Company placed its
longer term as the time saved from
people at the focal point and focused Overall, with a Sustainable
more efficient management of HR
efforts on value creation amongst Engagement score of 87, two
processes can now be spent focusing
various stakeholder groups, from points above the auto industry, the
on more strategic initiatives.
recruitment, onboarding, employee Company will continue to keep up
data management and performance with current engagement efforts
management. and invest efforts in identified
opportunities to build an even more
Starting with recruitment and
engaging workforce.
onboarding, it has launched a more
efficient and seamless process
through the Horizon platform. While
multi-channel job postings, job
requisitions and interview process
management can be initiated by
HRBPs. Apolloites can also leverage

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Overview Leadership Report Discussion and Analysis Reports Statements

WELLNESS & WELL-BEING strengthen the ownership mindset The Company continuously

Employees
for Health and Safety across the reviews and monitors its H&S key
Employee engagement is also a organisation. The Apollo Safe Way performance indicators, thrives to
critical component of workplace well- have three broad elements - Individual create psychological safe workplace
being as it creates a positive work ownership, Functional ownership, and for people to share key areas of
environment focussed on positive corporate ownership. improvement and have developed
attitudes, open communication, a on-site Gemba tool for line managers
sense of shared purpose and enables To permeate the Apollo Safe to review and address H&S concerns on
excellence within Apollo Tyres. Way across Apollo Tyres, the site.
Company introduced the following
To supplement well-being this implementation steps…
year, Apollo Tyres has reviewed
employee benefits to ensure that it The Company has
is continuously meeting the evolving achieved

21,652
needs of Apolloites. An example is the
work from home policy introduced to
ease the process of post-pandemic
return to office. training workdays in the

Communities
fiscal.
The Company offers employees in
India with Employee Assistance
Programme (EAP). This Programme is
designed to provide help to employees
in personal circumstances. The A total of

177,943
role of EAP is to help support and
enhance the mental and physical
well-being of employees, enhancing
the productivity of the Company. Such • Apollo Safe Way Workshop: A interventions were achieved
programmes have been specifically 2-hours workshop with 100% to reinforce H&S at Apollo
developed to provide support and coverage of Apollo One Family Tyres with HSE interaction
guidance to employees so that they including employees, contractors, index rate of 4,377 for million
can deal with issues that could have apprentice and NEEM operators
hours.
adversely affected their health, well- for the workshop.

Va l u e C h a i n P a r t n e r s
being and have a negative impact on
• Personal Health and Safety Goals:
their job performance.
All employees including the Senior
The Company also initiated a culture
of holistic well-being through a
curated calendar of events under
leadership takes up Health &
Safety Goals 1,931
• Individual ownership score card): Gemba were conducted on
the Apollo Well-Being Programme.
The cards are distributed as part site by line plant leadership
This calendar kicked off with the
International Women’s Day event
of the Apollo Safe Way Workshop. teams during the year.
across the global offices and will
continue to develop.

HEALTH AND SAFETY

Health and Safety has been an
integral part of business operations
at Apollo Tyres. The Company
Customers

continues to build on its Health and

Safety culture transformation journey
through strategic involvements and
initiatives across the ‘One Family’
value chain.

The Apollo Safe Way was launched by

VCMD on World Day for Safety and
Health. The aim of this initiative is to

83
 Apollo Tyres Ltd
Annual Report 2022-23

Creating Products of Tomorrow

Apollo Tyres continues to focus on for advanced recycling technology potentially support evolving
creating innovative, sustainable to create and use new and highly business models.
products for tomorrow with a sustainable rubber from ELTs.
minimum adverse impact on the The Company has established
environment. The Company has been The sustainability team is Foam technology capability for
working to develop new products that proactively engaging with OE supplies. Even as the Sealant
use sustainable materials and reduce raw materials and purchase technology is ready, it is working
energy consumption. It continues to departments to identify to make sealant technology more
invest in research and development to alternatives with low or sustainable.
find new ways to develop sustainable negligible adverse impact on
environment like; recycled Technology for puncture
materials and reduce material
rubber, recovered carbonaceous resistance in passenger and 2W
quantity without any performance
filler, rice husk silica, bio-oil, bio tyre has been developed and the
trade off. Its efforts have resulted in
monomer based synthetic rubber, work is in progress to make it a
the creation of several new products
reinforcements, etc. sustainable technology.
that have been well received by its
customers. Beyond the acute focus The Company has continued its
Apollo Tyres R&D has taken
on products, its R&D team, along work in further improving rolling
initiative to develop an in-house
with other teams, has streamlined resistance and light weighting of
research facility with advanced
its manufacturing processes and passenger car and commercial
instrument capability to enhance
improved efficiency. vehicle tyres. The team is
quality of recycled materials.
It is collaborating closely on working with new generation
Looking forward, there is still much
the development of rubber reinforcements which will support
work to be done, and the Company
compounds with improved in light weighing of tyres without
is committed to continue its efforts
sustainability index, incorporated compromising on tyre performance.
in creating sustainable products that
across all the product categories.
meet the needs of the customers. 3. Intellectual Property:
Mentioned below are some of the 2. Predevelopment and
• 28 patent applications
initiatives carried out in FY23 that Advanced Engineering:
are in alignment with the Company’s
were filed in FY23.
TPMS and RFID technologies
commitment to environment:
are developed for tyre health • Total 200+ active
1. Material Research & monitoring and digital patents have been
Development: identification of tyres which can granted across
geographies.
The Company recognises
the importance of material • 12 design registrations
sustainability in its operations
and products which refers to Beyond the filed in FY23.
responsible sourcing, use, and acute focus on • A total of 210+ design
disposal of materials throughout
their life cycle. Our priority products, the R&D registrations have
been granted across
is to develop new generation
reinforcing materials for improved
team, along with geographies.
performance and weight other teams, has 4. Compliance with Global
reduction of tyres. The Company
is exploring partnerships streamlined its regulations:
with global collaborator to manufacturing Apollo’s all developments ensured
transform ELTs (End Life of
Tyre) into nearly prime rubber processes and strict compliance of global
regulatory requirements like
via environmentally friendly
technology. It has joined hands
improved efficiency. REACH, PAH, ROHS, TSCA, ELV,
SOC, Conflict Minerals, California
with Canada-based Tyromer Inc., Prop65, etc.

84
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Being Future Ready

Apollo Tyres is committed to meeting With its trajectory to move away intervention which is creating a
its target of becoming carbon neutral. from fossil fuel, the Company has ripple effect and pushing the overall
The focus has been on introducing revised and increased its ongoing Sustainability journey forward.
innovating strategies and contribute commitments in the month of
to its overall Sustainability journey. June 2023. The revised target for The Company is creating strategies
It has developed a road map with renewable power to total power to work with diverse stakeholders as
six pillars on Sustainability, which share is going to be 30% and scope 2 that is pivotal in moving the needle
experienced focussed efforts in FY23. emission intensity reduction by 35% on Sustainable Development Goals.
Climate Change, one of the key by 2026. The Company has leveraged Collaboration continues to be the
six key priorities, observed a lot of its work under the Digitalisation pillar key mainstay going forward.
momentum, whereby it reduced its to grow and demonstrate a positive
Scope 1 and 2 emissions (in absolute impact through adoption of AI in
terms) by 4% and 1.5% respectively its manufacturing. The increase in
when compared to the baseline year, the use of sustainable raw material
even as it saw an increase of 19% in in its product mix is yet another
marketable production.

85
 Apollo Tyres Ltd
Annual Report 2022-23

Certificate of Verification
For

APOLLO TYRES LIMITED

7, Institutional Area, Sector 32, Gurgaon –122001, India.

Covering operations within the geographical boundary of the

manufacturing units as provided in Annex 1 below.

Bureau Veritas (India) Pvt. Ltd. has carried out the assurance of the following data of the above organization
for the manufacturing plants as reported under Annex II, in accordance with its own internal protocol and
the results are as below.

Water Intensity
Sr. Quantity of raw water Quantity of water
Name of the organization (m3 of raw water intake /
No intake (m3 per Year) recycled (m3/year)
MT of product) *

1 Apollo Tyres Limited* 2,198,698.4 898525.2 3.248 m3/MT **

* - Detailed breakup provided in Annex II

**- Total Production in FY22-23 is 676915 MT

# - This certificate of verification shall be read in conjunction with referred assessment report

Reporting year: 1st April 2022 to 31st March 2023

Level of Assurance: LIMITED

Assessment Report reference: 14567048-1/2023

To check this certificate validity please call: +91 22 6274 2000 OR E-mail: [email protected]

Further clarifications regarding the scope of this verification certificate may be obtained by consulting the
organisation.
Certificate Number: IND.22.14411/WB/V-2 Date: 13 June 2023

Jagdheesh N. MANIAN
Director – CERTIFICATION, South Asia
Commodities, Industry & Facilities Division

Certification / Managing Office Address: Bureau Veritas (India) Private Limited (Certification Business)
72 Business Park, Marol Industrial Area, MIDC Cross Road "C", Andheri (East), Mumbai – 400 093, India.

86
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Independent Assurance Statement

The inventory of Greenhouse Gas emission in FY 2022-2023 of

Greenhouse Gases Verification

Apollo Tyres Limited

has been verified in accordance with AA1000AS-V3 along with AA1000AP (2018) as meeting the
requirement of ISO 14064-1: 2018 and GHG protocol. With application of the mentioned standard
the carbon footprint was examined by TUV India Pvt. Ltd. regarding its correctness and
completeness and conforms below results.
Direct emissions from fuel consumption (Coal, FO, HSD, NG, LDO, RLNG) is 312,949 tonnes of
CO2eq and Indirect emission from purchased grid electricity is 327,390 tonnes of CO2eq, upstream
transportation and distribution (82,839 tonnes of CO2eq), downstream transportation and distribution
(109,350 tonnes of CO2eq) and Business Travel (2,289 tonnes of CO2eq).

For and on behalf of TUV India Private Limited

Manojkumar Borekar
Product Head – Sustainability Assurance
Service
TUV India Private Limited

Date: 15/05/2023 Assurance Statement no: 8121519984

Place: Mumbai, India www.tuv-nord.com/in

This assurance statement is invaild without annexure 1 of this statement

TÜV®

87
 Apollo Tyres Ltd
Annual Report 2022-23

Complementarity chart with GRI Standard

GRI STANDARD DISCLOSURE Location Page No.
2-1 Organizational details About Apollo Tyres 2-5, 26, 131
2-3 Reporting period, frequency and contact point ESG Performance Report 34
2-4 Restatements of information None
2-5 External assurance Certificates 86-87
2-6 Activities, value chain and other business relationships About Apollo Tyres 2-5, 58, 36-37
2-7 Employees The People Pillar 78
2-8 Workers who are not employees The People Pillar 78
2-9 Governance structure and composition Governance for An Enabling 41
Ecosystem
2-12 Role of the highest governance body in overseeing the Governance for An Enabling 41
GRI 2: General
management of impacts Ecosystem
Disclosures 2021
2-15 Conflicts of interest BRSR 141*
2-17 Collective knowledge of the highest governance body BRSR 138-139*
2-22 Statement on sustainable development strategy Letter from Chairman, Letter 22,24
from VCMD
2-23 Policy commitments BRSR 137*
2-25 Processes to remediate negative impacts BRSR 140*, 145*, 155*
2-27 Compliance with laws and regulations BRSR 139*-140*, 160*
2-28 Membership associations BRSR 163*
2-29 Approach to stakeholder engagement BRSR 150-152*
2-30 Collective bargaining agreements The People Pillar, BRSR 77, 145*
201-1 Direct economic value generated and distributed Annual Report 311
201-2 Financial implications and other risks and opportunities BRSR 135-136*
GRI 201: Economic
due to climate change
Performance 2016
201-3 Defined benefit plan obligations and other retirement Annual Report, BRSR 240, 144*
plans
GRI 203: Indirect 203-2 Significant indirect economic impacts Engaging with 67
Economic Impacts 2016 Communities
GRI 204: Procurement 204-1 Proportion of spending on local suppliers BRSR 164* & 165*
Practices 2016
205-2 Communication and training about anti-corruption Governance for An Enabling 43, 154*
GRI 205: Anti-
policies and procedures Ecosystem, BRSR
corruption 2016
205-3 Confirmed incidents of corruption and actions taken BRSR 140-141*
GRI 206: Anti- 206-1 Legal actions for anti-competitive behavior, anti-trust, BRSR 163*
competitive Behavior and monopoly practices
2016
301-1 Materials used by weight or volume Being an Ecosystem Player - 47
Raw Material Footprint
GRI 301: Materials 301-2 Recycled input materials used Being an Ecosystem Player - 47
2016 Raw Material Footprint
301-3 Reclaimed products and their packaging materials Being an Ecosystem Player - 47
Raw Material Footprint
302-1 Energy consumption within the organization Being an Ecosystem Player - 50
Energy Performance
302-4 Reduction of energy consumption Being an Ecosystem Player - 50
GRI 302: Energy 2016 Energy Performance
302-5 Reductions in energy requirements of products and Being an Ecosystem Player 47
services - Driving Sustainable
Consumption
303-1 Interactions with water as a shared resource Being an Ecosystem Player - 51
Sustainable Water Use
303-2 Management of water discharge-related impacts Being an Ecosystem Player - 51
Sustainable Water Use
GRI 303: Water and 303-3 Water withdrawal Being an Ecosystem Player - 51, 158*
Effluents 2018 Sustainable Water Use, BRSR
303-4 Water discharge Being an Ecosystem Player - 51
Sustainable Water Use
303-5 Water consumption Being an Ecosystem Player - 51, 158*
Sustainable Water Use, BRSR
304-1 Operational sites owned, leased, managed in, or BRSR 160*
adjacent to, protected areas and areas of high biodiversity
GRI 304: Biodiversity
value outside protected areas
2016
304-2 Significant impacts of activities, products and services BRSR 161*
on biodiversity

88
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

GRI STANDARD DISCLOSURE Location Page No.

304-3 Habitats protected or restored Being an Ecosystem Player- 53,
Promoting Biodiversity
Engaging with Communities
- Biodiversity Conservation 68
305-1 Direct (Scope 1) GHG emissions Being an Ecosystem Player - 46
Combating Climate Change
305-2 Energy indirect (Scope 2) GHG emissions Being an Ecosystem Player - 46
GRI 305: Emissions Combating Climate Change
2016 305-3 Other indirect (Scope 3) GHG emissions Being an Ecosystem Player - 46
Combating Climate Change
305-5 Reduction of GHG emissions Being an Ecosystem Player - 46
Combating Climate Change
306-3 Waste generated Being an Ecosystem Player 53
-Waste Management
GRI 306: Waste 2020
306-4 Waste diverted from disposal BRSR 159*
306-5 Waste directed to disposal BRSR 159*
GRI 308: Supplier 308-1 New suppliers that were screened using environmental Value Chain - Partners 58, 162*
Environmental criteria in Progress -Waste
Assessment 2016 Management, BRSR
401-1 New employee hires and employee turnover The People Pillar 79
GRI 401: Employment 401-2 Benefits provided to full-time employees that are not BRSR 144*
2016 provided to temporary or part-time employees
401-3 Parental leave BRSR 145*
403-1 Occupational health and safety management system Driving Progress Together - 37
Human Capital
403-2 Hazard identification, risk assessment, and incident BRSR 147*, 148*
investigation
403-3 Occupational health services The People Pillar - Health 83
GRI 403: Occupational and Safety
Health and Safety 403-5 Worker training on occupational health and safety Driving Progress Together - 37,146*
2018 Human Capital, BRSR
403-6 Promotion of worker health BRSR 147*
403-9 Work-related injuries "Growing Sustainably, 17, 147*
Acting Responsibly,
BRSR"
403-10 Work-related ill health BRSR 147*
GRI 404: Training and 404-1 Average hours of training per year per employee Driving Progress Together - 37,146*
Education 2016 Human Capital, BRSR
404-2 Programs for upgrading employee skills and transition The People Pillar 79-81
assistance programs
404-3 Percentage of employees receiving regular The People Pillar, BRSR 80, 146-147*
performance and career development reviews
GRI 405: Diversity and 405-1 Diversity of governance bodies and employees The People Pillar, BRSR 78, 132*
Equal Opportunity
2016
405-2 Ratio of basic salary and remuneration of women to BRSR 154*
men
GRI 406: Non- 406-1 Incidents of discrimination and corrective actions BRSR 155*
discrimination 2016 taken
GRI 413: Local 413-1 Operations with local community engagement, impact Engaging with Communities 62-73
Communities 2016 assessments, and development programs
GRI 414: Supplier Social 414-1 New suppliers that were screened using social criteria Value Chain - Partners in 60
Assessment 2016 Progress
416-1 Assessment of the health and safety impacts of Customers – Central to 56
GRI 416: Customer
product and service categories Existence
Health and Safety
416-2 Incidents of non-compliance concerning the health and Customers – Central to 57
2016
safety impacts of products and services Existence
GRI 417: Marketing and 417-1 Requirements for product and service information and BRSR 169*, 171*
Labeling 2016 labeling
GRI 418: Customer 418-1 Substantiated complaints concerning breaches of BRSR 170*, 171*
Privacy 2016 customer privacy and losses of customer data
* BRSR ( Business Responsibility and Sustainability Report) Information is limited to Asia-Pacific Middle East, and Africa (APMEA) region only.

89
Management
Discussion
and Analysis
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Management Discussion and Analysis

Global Economy Indian economy are under control and passenger vehicle (PV) sales with a
showing signs of an inclusive, broad- spectacular growth of 27%, mostly
It was a year of continued uncertainty based recovery across industries, aided by strong demand for sports
and turbulence. The world grappled as the country eyes on India@100, utility vehicles (SUVs). Demonstrating
with geopolitical fragmentation and a journey towards her centennial tremendous resilience and strong
tensions, high inflation, cost-of-living as a modern, fastest-growing, market demand, the passenger
crisis, and financial sector turmoil industrialised nation. Despite the vehicles domestic sales for the fiscal
in most regions. Russia’s invasion of ongoing global headwinds caused by rose to 3.9 million units from 3.1 million
Ukraine and the ongoing war had external factors like post-pandemic units a year ago. The Commercial
a cascading impact as the world spill overs, supply chain disruptions vehicles (CV) sales volumes surged
saw commodity and energy price due to the escalating Russia-Ukraine to 0.9 million units in FY23 from 0.7
shocks and trade disruptions. This conflict and potential recessionary million units in the previous fiscal.
led to significant reorientation and pressures facing developed economies, Urban demand, festive sales offers
adjustment across many economies. the Indian economy continued to and pre-buying due to the BS6 Phase
move ahead and weathered the 2 transition helped in increasing
According to data from the
global economic crisis and headwinds. the overall volumes of passenger
International Monetary Fund (IMF),
Multiple initiatives by the government vehicles and commercial vehicles –
countries across the globe were
including PLI schemes, national despite supply chain challenges and
impacted and saw slower growth as
logistic reforms, increased spending semiconductor chip shortage.
compared to robust performance in
on infrastructure, robust local
Calendar Year 2021 (CY21). As per data by the Society of Indian
demand, conducive domestic policy
environment, digitisation, etc. have Automobile Manufacturers (SIAM),
In CY22, Advanced Economies (US,
helped the country to race past other commercial vehicles, three-wheelers
Euro Area, Japan, etc.) grew at a
economies and be the fastest-growing and two-wheelers posted growth of
slow pace of 2.7% as against a strong
economy among the seven largest 34%, 87% and 17% respectively.
growth of 5% in CY21. The US economy
too lost some steam as it managed emerging markets and developing
While the auto industry’s overall
a growth of 2.1% as against 5.6% in economies (EMDEs).
domestic demand and sales have been
CY21. While the Euro Area grew at a high, the exports dipped, particularly
India seems to be in a bright spot with
better clip compared to US at 3.5%, in the CV segment, predominantly due
the overall growth remaining at robust
the economy had slowed down from to a weak global outlook.
level. According to the provisional
its CY21 growth rate of 5.2%.
estimates released by the National
The electric vehicle segment has
The traditional global growth engines Statistical Office (NSO), India's FY23
shown enormous growth potential
'Emerging Markets and Developing GDP growth was at 7.2%, beating
during the fiscal, with major
Economies' collectively posted a several estimates.
companies launching vehicles in this
growth of 4.5% as against 6.5% segment.
growth in CY22. The worst hit was
China which saw the continued impact
of COVID-19 during the calendar year

27%
as its growth slowed down to 3%, a

7.2%
far cry from its stellar performance in
CY21 at 8.1%.

Overall, given the turbulence, the Growth in India GDP Growth in PV Segment
impact was evident as the global
economy witnessed a growth of 3.4%
Auto Segment
for CY22 as against a plus 5% for CY21.

34%
Despite the challenging global
India Market Overview
environment and high inflationary
The financial year 2022-23 (FY23) pressures, the Indian auto industry
ended FY23 on a positive note, even as
was a watershed year for India as it Growth in CV Segment
became the fifth largest economy in it broke into the top three largest car
the world, surpassing the UK. It also markets in the world. Led by robust
assumed the presidency of the G20 economic activities and increased Tyre Segment
forum for the first time, highlighting mobility, the overall automobile
Riding high on past capacity
the global spotlight on India. The domestic sales grew by 20% in FY23.
addition, globally aligned regulatory
macroeconomic fundamentals of the The industry recorded its highest
environment in the country and

91
 Apollo Tyres Ltd
Annual Report 2022-23

improving production, the Indian According to International Monetary pandemic in 2020 and the subsequent
tyre industry is looking at generating Fund (IMF), the Euro Area witnessed supply disruptions that persisted even
incremental turnover of H 25,000 a muted growth of 3.5% in CY22 as the pandemic eased.
crore in the next three years and as inflation keeps cutting into As slowdown looms, the economy
cross a turnover of H 1 lakh crore, as households' disposable incomes, faced steep challenges in CY22 amid
per a report by the Automotive Tyre adding pressure on central banks spiking electricity and gas costs
Manufacturers Association (ATMA). to hike interest rates. However, the which reduced the purchasing power
At present the overall turnover of the labour market continued performing of households, dampening consumer
domestic tyre industry stands at robustly, with employment at its spending. The global car market faced
H 75,000 crore. highest and unemployment at its supply chain disturbances amid rising
lowest in decades, despite global geopolitical tensions in 2022.
After two muted years of the COVID-19 headwinds and subdued economic
pandemic, the tyre exports from India activity dampening the sentiment. According to data published by the
during the April-December period of European Automobile Manufacturers’
FY23 went up by 15% at H 17,816 crore In Central Europe, the growth Association, the EU commercial vehicle
as against H 15,507 crore in the year- was more resilient, with Hungary and passenger car market contracted
ago period, according to the data registering 5% growth, Croatia 4.8%, by 14.6% and 4.6% respectively. The
released by Ministry of Commerce, Poland 5.5%, Romania 4.2%, and major factor for this sharp decline
Govt. of India. Slovakia 5% in CY22. These economies was supply chain disruptions and
in Central Europe are likely to expand component shortages which affected
Europe Market Overview more than the EU average. the availability of vehicles throughout
the year. However, heavy commercial
Economy
vehicles posted an increase of 6.5% in
As the conflict between Russia and 2022 when compared with 2021.

3.5%
Ukraine continued, the economic
aftermaths of the war have been
Tyre Segment
extending beyond the boundaries CY22 was characterised by two
of the two countries, denting global Growth in Euro Area GDP contrasting half-year results for the
demand and reinforcing inflationary European tyre industry. Given the
pressures across countries. The increased travelling in the post-Covid
European Union (EU) is among the
Auto Segment
era which directly impacted tyres
most exposed advanced economies, CY22 marked a third difficult year demand positively in the first half.
due to its geographical proximity to for the European auto industry since However, the sales were adversely
the war. the lockdown during the COVID-19 impacted by a challenging second
half of the year because of the war
92
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

in Ukraine and the ensuing spike in positive. The All-Season tyre market, period a year-ago. The production of
energy prices and higher cost of living. supported by new regulations like PV tyres (both radial and bias) grew
the ‘Mountain law’ in France, is still 16% as compared to the same period a
The tyre industry witnessed a positive growing by 8% YoY, and the UHP year-ago. Meanwhile, the Truck & Bus
trend in the first six months for CY22 UUHP market for 17/18 inches and 19 and LCV segment witnessed a modest
for replacement consumer tyres inches+ is also soaring high. growth of 3.4%. The production
with 7.4% growth compared to CY21, volumes of two-wheelers also
combined with 10.3% growth for Truck Industry Structure and increased by 5.7% when compared
and Bus tyres. According to data Developments with the same period a year-ago.
released by the European Tyre and
Rubber Manufacturers’ Association India Tyre exports from India were up 15%
(ETRMA), overall, the replacement in the April – December 2022 period
The tyre demand in India is expected
consumer tyres segment in Europe despite supply chain disruptions.
to grow stronger in view of rebounding
saw a decline of 2% in CY22 compared According to the report released by
economic activities and the big push
to a year ago, with a sharp decline of Ministry of Commerce, India, India
by the Govt. of India for infrastructure
10.1% in the last six months in the 2nd exported tyres worth H 17,816 crore in
growth in the nation. The industry has
half of the calendar year. The overall April – Dec 2022 as against H 15,507
completed investment of H 35,000
replacement truck and bus tyre crore a year-ago.
crore in the last three years in new
market remained stable (+1%), despite
capacity addition and debottlenecking, Adding to the complexities for the
a sharp decline of 8.2% in the second
spanning across all key tyre segments tyre industry, the fiscal witnessed
half. Agricultural tyres also posted a
with major beneficiaries being truck a 10% increase in the raw material
decline of 22% in CY22.
and bus radials (TBR) and passenger cost, touching all time new peaks.
For original equipment (OE) tyres, car radials (PCR) tyres manufacturing. The first half of the year experienced
year-end results were more positive significant raw material cost push
According to a statistical report by
with an increase of consumer tyres which was partially mitigated in the
the Rubber Board, Govt. of India for
sales of +3.4% and of +4.7% for truck second half of the year.
April-September 2022 period, the tyre
and bus.
industry cumulatively produced more The Rupee started the year at a
Despite the challenges faced by the than 98 million units as against 90 level of 76 against the US Dollar and
tyre market, some key trends remain million units produced during the same weakened to a level of 82 by the end

93
 Apollo Tyres Ltd
Annual Report 2022-23

of the year. The Ocean Freight Rates Natural Rubber availability in India for developing 2,00,000 hectares
which had gone up to 10 times of pre- continues to be deficient against the of rubber plantations supported by
Covid levels now stand around 2 times requirement of the consuming industry major tyre companies with technical
of pre-Covid levels. and the shortfall was met through support and coordination by the
imports from Indonesia and Thailand. Rubber Board under the Ministry of
Oil prices started the year on a strong The Port Restriction on imports of Commerce. In the first two years of its
note maintaining their strength due Natural Rubber continues and coupled operations till FY23, 27,000 hectares
to geo-political factors. Though, this with the inverted duty structure on have been planted already, and with a
was followed by decline in prices due Natural Rubber @ 25% or H 30/kg target of another 50,000 hectares in
to weakness in global demand, Fed whichever is lower continued to be FY24 under the project, it will lead to
interest rate hikes and weak growth challenging for the industry. increased availability in the next five
outlook in major global economies years in in Northeast, India.
around the world. Brent Crude Oil rose The Company has partnered with the
by 19% on a year-on-year basis in FY23 Government of India in developing The Crude based raw materials –
on account of geo-political factors, new Natural Rubber plantations in Carbon Black, Synthetic Rubber,
supply disruptions, and rise in Natural the Northeast parts of India under Fabric, Chemicals also experienced
Gas prices. the Prime Minister's Atma Nirbhar high input cost inflation during the
Bharat Scheme. The project is fiscal.
designed to implement the scheme

94
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Europe resulted in price increases across all year to return to pre-Covid levels, on
economic sectors in the second half. accounts of mild winter, government
The year was one of high inflation and Inflation in the eurozone increased by support, and consumption changes.
steep rise in interest rates by Central 10% YoY in the first half of the fiscal.
Banks across the world. The energy In the second half of 2022, there was Inflation in raw materials and an
costs soared high in Europe on the a relative slowdown in economic economic ban on imported goods from
back of continued Russia-Ukraine growth, with YoY growth of 1.9% in Russia led to an increased demand
conflict and subsequent sanctions on Q3 and 0.8% in Q4. The supply side of for winter tyres, with low stock levels
Russia. China’s zero Covid policy led to the economy struggled to keep pace for tyre dealers resulting in strong
moderation in economic activity. with rapid swings in global demand, demand for tyres during the first half
affecting key industries such as global of CY22.
After two challenging years due
logistics, raw material production,
to the COVID-19 pandemic, the Overall, the replacement consumer
and microprocessors. Rising energy
European economy experienced a tyre market in Europe, without Turkey,
prices, especially for natural gas and
strong rebound in the first half of decreased by 3%, and the Truck and
electricity, are expected to slow down
FY23. However, the war in Ukraine Bus market remained flat. Agricultural
growth in the short term. However,
caused a surge in energy costs, and tyres saw a decline of 22% throughout
the energy and raw material prices
Europe's limited electricity production the year.
adjusted during the second half of the
capacity combined with high demand

95
 Apollo Tyres Ltd
Annual Report 2022-23

SWOT Analysis

Strengths
• Apollo Tyres has the advantage of a diversified market base across geographies and therefore, it is not completely
dependent on the Indian market alone. Further, the Company is working towards establishing and growing
operations in other large markets, including North America.

• With its reasonable presence in the two-wheeler segment, the Company is now a full-range tyre player in India and
can service the large and growing two-wheeler tyre segment in India.

• The Company is powered by well-established product brands in its key markets – Apollo and Vredestein.

• Apollo Tyres enjoys an extensive distribution network for its products across its two key markets.

• In Europe, the Company’s brand, Vredestein, has a heritage of over 100 years and an established presence. It also
enjoys a reasonable premium positioning, especially in winter and all-season segments.

• The Company has state-of-the-art manufacturing facilities in India and Europe and with a robust network, it can
easily distribute and sell its products across the globe.

• The Company has entered the CV tyre segment in North America, after a successful launch of its passenger vehicle
range in this market.

• In India, the Company is a leading brand in the CV and PV segment, which account for the bulk of the industry’s
revenue. The Company is best positioned to maintain its leadership position in the truck radial and PV segment and
drive growth through the same.

• Apollo Tyres has a global and culturally diversified management team driving growth across geographies.

• The Company’s research and development (R&D) facilities for PV and CV tyres will play a key role in bringing cutting-
edge technology and innovation to drive growth.

• Increased spends on building the corporate brand has made Apollo a strong brand in India and a recognised one
globally.

• Apollo Tyres has long established relationships with global OEM manufacturers, present in India, and has further
forayed into the premium OEM segments in India.

• The Company is aggressively pursuing its strategy of building OEM relationships in Europe and has seen key wins.

• The Company is taking a leadership position in the EV tyres segment. It was amongst the first in India to introduce
an exclusive range of EV tyres - Amperion which catered to the emerging EV segment and is an OEM fitment already.
Also in Europe, it was the first Company to introduce an All-season tyre for the EV segment.

• The Company’s new ranges like Vredestein Wintrac Pro and Vredestein Quatrac Pro have been given top ratings by
multiple external media and tyre testing agencies.

Weaknesses
• In a rapidly rising raw material cost scenario, the Company may be unable to pass on cost escalations to consumers
in India, due to intense competition and various market dynamics, resulting in pressure on margins.

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Opportunities
• In India, the Company has a considerable lead over its competition in terms of product brand equity in the truck bus
radial segment. This implies impressive growth prospects with increasing ‘radialisation.’

• Apollo Tyres has a leadership position in passenger car tyres segment with healthy growth prospects.

• In India, the Company's two-wheeler tyre product has been widely accepted by the market and there are prospects
of scaling up the market share in a fast-growing and profitable segment.
• The Company’s highly automated state-of-the-art plants in Hungary and India are scaling up and are well-
positioned to drive growth in the European and Indian market due to a new cost-competitive manufacturing facility.
• Apollo Tyres has started deliveries to European OEM manufacturers endorsing the premium position of its
Vredestein brand. This will help to generate replacement demand.

• With the premium positioning of the Vredestein brand in Europe and now with the modern state-of-the-art plant
in Hungary, the Company has good prospects for improving its product mix towards a more profitable premium car
tyre segment.

• The Company has brought the Vredestein brand in India catering to the higher segment of the market.

• The Company continues to increase its focus on new geographies such as North America and in geographies where
it has already made some inroads, such as in the Middle East. These geographies will be the growth avenues for the
future.

• The Company has launched truck tyres in Europe and US, which will further enhance revenue and market presence.

Threats
• Economic downturn or slowdown in the key markets (India and Europe) can lead to reduced demand and capacity
utilisation.

• The continuing disruption situation due to COVID-19 pandemic waves in many parts where the Company operates
can have a significant impact on its business.

• Continuing high inflation will add to pressure on margins.

• A weak Indian currency can result in pressure on margins, since the Company is a net importer.

• Consolidation in the distribution landscape as independent dealers are disappearing, wholesalers and company-
owned networks are growing. Internet is playing a major role in this change, and this can impact the Company
network and profitability.

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We launched
our Premium
All terrain
SUV pattern
- Vredestein
Pinza AT which
addresses the
needs of the
Premium SUV
consumers.

Segment-wise performance Passenger Car Radial Tyres OEM fitment already – a testimony to
its technology superiority.
The Company continued to focus on In FY23, the Company further
its key regions - India and Europe. strengthened its market leadership The Company’s dual strategy was
Also, it continued to build its presence position in the Passenger Car Radial at play during the fiscal. It was able
in North America with product (PCR) tyres market. According to to successfully establish its premium
releases. internal estimates, the Company brand Vredestein in the PCR and 2W
retained its leadership position space in India and made inroads in
In FY23, the APMEA (Asia Pacific/ in the replacement market in the the APMEA markets as well. With
Middle East/Africa) operation replacement market for the third year brand Vredestein, it is catering to the
continued its focus on key themes for in a row. With an increase in volumes, premium and luxury segments of the
the Indian market - consolidating its strong price positioning, it marginally market with two patterns i.e., ‘Ultrac
leadership position and expanding inched up its market share in the Vorti i’ and ‘Ultrac i’ which addressed
market share by introducing new category. the luxury sedans and premium hatch
products across segments. Committed segment and the high-performance
investments in R&D and brand With best-in-class product line German vehicles like Audi, BMW, etc.
building continued to fuel the growth backed by its strong R&D, it witnessed The fiscal also saw the launch of its
journey of the region to attain market significant improvement in its sales premium All terrain SUV pattern -
leadership position. The region has mix where the premium portfolio Vredestein Pinza AT which addressed
seen continued OEM approvals with sales contributions improved from the needs of the premium SUV
high satisfaction as well as increased 20% to 27% in FY23, in line with its consumers.
customer acknowledgements. For Premiumisation strategy. Given
other countries in the APMEA region, its focus on sustainability and EV Commercial Vehicles Tyres
it continued increasing the presence leadership, it was amongst the first in
with country specific products, India to introduce an exclusive range
FY23 was the year of new launches
building brand salience and expanding of EV tyres - Amperion which catered
for the Company’s Commercial
distribution networks. to the emerging EV segment and is an
Vehicles (CV) tyres. In the TBR

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Apollo Tyres has developed passenger vehicle tyres with 75% sustainable materials.

segment, it introduced steer fitment for a strong market share lead in the has been possible with the decade
tyres - 295/90 R20 EnduRace RA coming fiscal. long trust customers have placed in
and Endutrax MA in the regional the performance of the product.
and mixed categories. Focussed on The truck bus bias (TBB) segment saw
enhancing the products’ performance, a significant impact of the rising raw
it rolled out 295/90 R20 Endurace materials cost. However, with a strong The Company
achieved a
RD nRG, a drive fitment tyre which brand positioning and robust portfolio,
marked the completion of its fuel- it was successful in passing on some of
efficient range. Further, to cater to the cost with price increases during the milestone for its
fiscal. The financial year also saw the
the growing ecommerce logistics and
perishables sectors, it introduced launch of flagship mining range Terra flagship CV product,
9.00 R20 Endurace LD+ and 9.00 MT in 12.00-20 and 12.00-24 sizes.
Endurace LD,
R20 Endurace RA, the LCV range’s
succession products for superior
On the Tubeless radial range, the
Company saw strong acceptance
posting sales of over
performance delivery. Backed with
robust service support and significant
and volume build up on its products 10 million units since
brand value, these products are poised
- EnduRace RD2 for drive fitment
and EnduComfort CA2 for premium
its inception in 2010.
to become competent pillars in its
coaches. Both the products offered
volume leadership.
the latest advancements in bead Off-highway Tyres
During the fiscal, the TBR segment technology and a ground up The Company’s off-highway tyres
witnessed some bearing of development on the product ensured (OHT) category is focussed on three
competitive environment which that it offered the best performance key sub-segments: Agriculture,
impacted the market share. However, for its target audiences. Industrial and Earthmovers. In FY23,
the Company was able to neutralise the Company played on its key
During the fiscal, the Company
this with its strong price positioning strengths including a strong brand
achieved a huge milestone for its
and best-in-class product mix. The identity, robust dealer network, strong
flagship CV product, Endurace LD,
newly launched products have been OE presence in speciality segment
posting sales of over 10 million units
well received in their respective and deep rural penetration to gain
since its inception in 2010. This feat
segments and the range is now set

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its competitive edge in a challenging segment addressability has gone up

market scenario.
The Company substantially.
The fiscal began on a promising note
for the agriculture tyres segment as a registered a double- The Company
strong outlook on wheat production digit growth in the expanded its
estimates and higher than MSP
market prices due to Russia-Ukraine fastest-growing, motorcycle
war was indicated. However, the
onset of early summer affected the
Puddling application. radial portfolio
wheat-producing states with crop
production falling 25%. A rainfall Two-wheelers Tyres by introducing a
deficit in July-Aug in central and During FY23, the Company continued Moto-Cross Tyre
brand ‘Tramplr’.
eastern states, followed by heavy to build its position in the Indian two-
rainfall in September dampened the wheeler market, largely driven by new
sentiments. In addition, the rise in product launches, effective marketing Several products
commodity prices led to high inflation
of agriculture inputs leading to drop
campaigns, expanding distribution
footprint and strong consumer
were added to the
in rural income in hand, putting the
hinterland in distress. This led to
demand for technology-backed ‘Tramplr’ brand
contraction of demand in rural India
products.
portfolio, catering to
The Company’s two-wheelers tyre
and the impact was more visible in
the replacement market which saw a business, aided by growth and varying motorcycles.
decline in FY23 over FY22. mobility of rural areas, and the sales
contribution posted a compelling Brand Building
The fiscal saw rising raw material growth of double-digit growth for the
prices impacting margins for this fiscal. With the premium motorcycle The fiscal saw the Company reinforcing
category. However, introduction of sales gradually growing, the tyre its motto of ‘Go the Distance’ through
new products like VIRAT (general demand also saw a steady increase. multiple avenues. Building on the
agriculture range) and FX333 The Company with a strong portfolio successes from the previous fiscal,
(puddling tyre range) helped it to have in the radial tyres and premium bias it approached the new year with a
a better bottom line for the category. saw strong sales coming in. During renewed drive and vigour to magnify
The Company also worked on its the fiscal, the Company expanded its goal of amplifying the performance
product mix and increased the share of its radial portfolio by introducing narrative through tactical brand
speciality which has higher net profit a Moto-Cross Tyre brand ‘Tramplr’. building initiatives, bespoke content,
margin than the overall category Several products were added to the and strategic product integrations, all
margins. Thanks to the superior ‘Tramplr’ brand portfolio, catering within a broad worldview of engaging
product line, the Company’s product to varying motorcycles. With this communities globally as well as within
in this category command a higher addition, its two-wheeler tyre urban and rural India. The Company
pricing than the market players.

The Industrial tyres category is

directly linked with infrastructure
growth and spends in the country.
Amongst the key infrastructure
category, the road construction was
on a slow pace with the Government
only able to meet 39% of FY23
highway construction target till Dec
’22. This resulted in low demand for
construction equipment and sales of
industrial and construction tyres. As
per industry estimates, the segment
registered a decline, but it was able
to sustain FY22 volumes during FY23
with new product launches (Terra
Range of Backhoe Loader Tyres) and
dedicated key account management
structure for more efficient account
management and customer servicing. Apollo Tyres introduced specific tyres for electric vehicles (EVs) for both,
passenger vehicles segment (Apollo Amperion Range) and two-wheelers
(WAV range) for the Indian market.
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not only diversified its portfolio of Expanding the Company’s rural In the CV space, it upped its
assets, but activations within each footprint, it became the title sponsor engagement with customers by
asset. of India's ‘Rural Olympics’- Kila Raipur, resuming the ‘Customer Connect’
where the Company drove consumer programme with the ‘Leaders &
Apollo Tyres leveraged its association
connects with special focus on the Mover’ meets, increasing its fitment
with Sachin Tendulkar who was
tractor and farm vehicle consumers, share across fleets. Through this
ranked as the top sports celebrity
accompanied by its bestselling Virat programme, it was able to engage
in the Brand Endorser Report, 2022,
tyre led integrations across the venue. more than 18,000 customers. As part
strengthening its brand story by
The Company’s key-brand messaging of this programme, multiple initiatives
driving the performance narrative
of #GoTheDistance unified runners were conducted to spread awareness,
through passion-led content pieces,
in the New Delhi Marathon with a ensuring the right application to fit
sports conclave integrations, and the
cumulative 8.5 million reach, the first with the tyres.
‘One Family’ team talk.
of five marathons it has charted.
As a global partner and sponsor of Additionally, the Company amplified Tramplr was launched with a full-
Manchester United, the Company its brand visibility among the blown experiential event having 80+
focussed on its asset utilisation on premium 4-wheeler segment through influencers and auto journalists of
market initiatives such as the India Vredestein, with the sole focus of Bangalore in attendance. Reiterating
visits of 3 Manchester United First establishing Apollo Tyres as the brand the brand’s philosophy of ‘Going
Team players and the Seven Man of choice and drove connects with Beyond Sameness’, a digital film
United Legends, through which the Indian football fans through exclusive was also rolled out. The community
Company effectively engaged key cross-asset activations such as the building initiative ‘Bad Road Buddies’
stakeholders as well as curated Chennaiyin FC Meet and Greet with helped it in growing the brand
remarkable content for brand the Imphal GTD Pitch Launch. awareness and establish product
message augmentation. Along with superiority in the key markets. It
The Company further strengthened also facilitated a connect with over
these initiatives, there were innovative
its Bad Road Buddies programme, 2000+ enthusiasts across 25 cities,
product integrations like the Tramplr
engaging the community with a giving it high visibility on social media
Turn Challenge, and once-in-a-lifetime
long-term view of sales. Consistent platforms.
gratification opportunities with the
community engagement helped it
United We Play 2.0 and eSports
to tap into wider networks through Europe
Winners Trip to Old Trafford. The
events such as Motorama, curated
recognition of eSports as within the In Europe, Apollo Tyres continued
Thar and SUV drives, and the
purview of the Ministry of Sports and to expand its offerings to meet the
Rainforest Challenge.
Youth Affairs continues to provide the evolving needs of customers. During
Company with a unique opportunity The fiscal ended on a high note, as FY23, it focussed on building on the
to capitalise on its networks with the the Company directly engaged with expansion spree that happened in the
young digital consumer segment. To 1.3 million consumers on-ground past fiscals for PV All-Season tyres,
encapsulate, it was triumphant in and reached more than 7.8 million light truck tyres and winter ranges
permeating through multiple customer consumers digitally through sports with Quatrac, Wintrac, Comtrac 2,
categories, touching a record 29.5 and community. strengthening its market offering.
million consumers globally.
In FY23, the Company celebrated 30
years in the All-Season segment by
launching a new key product to extend
its range in strategic segments. In the
first half of the fiscal, Quatrac Pro EV
was launched, specifically designed
for electric vehicles, commemorating
the launch of its first All-Season Tyre in
1993. This new range is available in 19
sizes even as it launched 17 All-Season
sizes in the UHP/UUHP segment (17”,
18”, and 19” and above) to expand the
segment.

The fiscal marked a key success for

Vredestein brand as it was selected
as an original equipment supplier
for the all-new BMW Series 2 Active
Tourer, BMW X1 sports utility vehicle,
and the new Caddy from Volkswagen

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Annual Report 2022-23

Commercial Vehicles. Audi also To strengthen the visibility and brand across the length and breadth of
selected the brand’s latest Vredestein awareness of Vredestein in Europe America as the Company signed a
Ultrac and Sportrac summer tyres and beyond, Apollo Tyres hosted a sponsorship with one of its customers
as original equipment for Audi A1 special event in September 2022 at its KVY Tires.
Sportback manufacturing facility and research
The Company introduced three
centre in Enschede, the Netherlands
In OHT, it completed 25 years journey new line haul products at the
by welcoming press and customers
of the remarkable and extremely American Trucking Association, TMC
from across Europe to showcase the
successful Vredestein Traxion+ tractor (Technology Maintenance Council,
Company’s latest Vredestein tyres
tyres, which became a revolutionary in Orlando). The new range will allow
on a demo field in the beautiful
tyre with a strong divergent pattern the Company to cover 85% of the
countryside. Demonstrating its
compared to the usual tractor tyre commercial truck tyre market, with
technical leadership in the Winter
patterns of its time. over 40 SKUs, delivering high mileage
and All-Season segments, the
and low CPM.
Company sponsored the FIS World
Further, the Company bolstered its
Vredestein brand by introducing two
Ski Championships in France in Outlook
February 2023. This was broadcasted
new series of trailer tyres in a VF line
on national TV, reaching an audience The economic outlook for FY24
for optimal soil preservation and a
of over 120 million across Europe and continues to be one of uncertainty as
heavy-duty line for trailers focussed
the US. the Russian-Ukraine war continues
on road transport. The new Vredestein
and the chances for further economic
Flotation Optimall is a premium The Company also became the official disruptions still prevalent. The biggest
tyre solution that raises the bar in name partner of ‘Vredestein 20 km setback can be the risk of shortages,
terms of soil preservation, grassland- de Paris’, one of the most celebrated lasting inflation, elevated oil and
friendliness, and self-cleaning, while races in Europe, increasing the brand energy prices and rising interest rate
the new Vredestein Endurion Trailer is footprint in South-West Europe. environment.
a premium tyre solution that excels in
robustness, comfort, and tyre life. Americas According to data from IMF, the
global economy growth is expected to
In the TBR segment, it expanded its The Company has been seeding the
fall from 3.4% in 2022 to 2.8% in 2023,
range of EnduRace RD2 TBR tyres by markets in Americas and saw success
before inching up to 3.0% in 2024.
adding new sizes to the highly successful in FY23.
Advanced economies are expected to
product portfolio. The new sizes
During the fiscal, the PV market see an especially muted growth from
range from 315/70 and are exclusively
coverage increased from 45% to 80%. 2.7% in 2022 to 1.3% in 2023. Euro
available for 22.5-inch wheels, which is
TBR market coverage also stands Area will continue to move the global
the standard for modern commercial
at 65% plus. It continued to focus slowdown as its growth drops to 0.8%
truck and bus tyres.
on increasing its network and brand in 2023 and then move upwards to
awareness and added the first OE 1.4% in 2024.
account – PACCAR. As part of its
The outlook for the EU car market is
vigorous brand building initiatives in
positive despite component shortages
the US, the Company launched the
and economic challenges in the region.
nationwide campaign for Pinza HT,
New car registrations are forecasted
taking the brand to the AT&T Stadium,
to increase by around 5% in 2023,
home of the Dallas Cowboys in
according to European Automobile
Arlington, Texas, for the world-famous
Manufacturers’ Association.
Q BBQ Fest with 200,000 attendees,
and the endzone of the Oregon Ducks’ The World Economic Outlook
Autzen Stadium in Eugene, Oregon for report released by IMF stated “An
over 50,000 fans. It participated in one appropriate course of action is crucial
of the most beautiful and celebrated in the coming years. Global monetary
races in the World – the 1000 Miglia policy should focus on bringing
with Vredestein brand being the official inflation down. Tighter fiscal policy
tyre partner of the event. can also play an active role. By cooling
off economic activity, it would support
After successfully launching its monetary policy, allowing real interest
products in the US market, as part rates to return faster to their natural
of the Company’s North American level." According to Reserve Bank of
growth plan, the Company India (RBI) and IMF, the overall growth
augmented its visibility in the North rate for the Indian economy for FY24
American market by making Apollo is forecasted to be between 6.0-
branded commercial trailers visible 6.5%. The Indian economy is likely to

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benefit from increased infrastructure The Company’s Risk Management 3. Raw material price volatility
spend, banking credit growth, and processes focus on ensuring that these
a possible rural bounce-back due to risks are identified promptly; and a ● The industry is raw material
easing inflation and will continue to be mitigation action plan is identified and intensive. Natural rubber,
the fastest-growing economy in the monitored periodically to ensure that the which is a major raw material,
world. On the other side, risks include risks are being addressed accordingly. is an agricultural commodity
a lower-than-average monsoon, weak and is subject to price
global demand, slow pickup of private The Company’s Risk Management volatility and production
capex, and FII outflows due to rising framework operates with the following concerns.
US policy rates. objectives:
● Most other raw materials are
Amid such uncertain economic and • Proactively identify and highlight affected by the movement
geo-political conditions, Apollo risks to the right stakeholders. in crude prices. Rising crude
Tyres has adopted a prudent fiscal oil prices and increasing raw
approach. The focus continues to be • Facilitate discussions around risk material costs may affect the
on investing in good costs and cutting prioritisation and mitigation. profitability of the Company.
down bad costs, employee safety and • Provide a framework to assess
conserving cash. The Company will ● Both natural rubber and
risk capacity and appetite; crude prices are controlled by
focus on sustainable profitable growth develop systems to warn when the
as it focusses to achieve its Vision external environment and are,
appetite is getting breached. therefore, beyond reasonable
targets by FY26.
control of the management.
The list of key risks and opportunities
Risks and Concerns identified by the Management are as 4. Dilution of import restrictions on
The Company has in place a robust follows: tyres and increased competition
risk management framework that from global players
FINANCIALS
identifies and evaluates business risks
and opportunities. The Company ● Dilution of anti-dumping duty
1. High inflation and economic
recognises that these risks need on Chinese tyres will increase
downturn
to be managed effectively and price competition for the
mitigated to protect the interest of ● Core inflation (which excludes domestic tyre manufacturers.
the shareholders and stakeholders, to the impact of volatile food
5. Radialisation levels in India
achieve business objectives and create and energy prices) continues
sustainable value and growth. to be high despite significant ● An unexpected quicker
tightening of monetary increase in the level of
policy. While rising inflation radialisation can result in
can increase indirect costs, faster redundancy of cross-
high interest rates can make ply capacities and create a
working capital more costly. need for fresh investments.
● Demand in the tyre industry 6. Cyber Attacks
is dependent on economic
growth and/or infrastructure ● Cyberattacks are on the rise,
development. Any slowdown and ransomware and phishing
in the economic growth across scams are now a common
regions, impacts the industry. occurrence. The cyberattack
threat of unauthorised access
2. Supply chain risks and disruption of business
operations continue to
● In a globally interconnected
increase across the globe.
world, supply chain resilience
is crucial. Global economic 7. Natural Disasters
situation, ongoing Russia-
Ukraine war, cyber-attack, ● The world has witnessed
political/ economic instability several natural disasters
in supplier's country, covid recently. Natural disasters can
related blockages, labour cause harm to human life and
shortages can impact supply infrastructure and may result
chain. in disruption of business.

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SOCIAL also ensure that they mitigate the with operating systems, internal
current business risks. These policies policies, and legal requirements, as
1. Manpower and Labour
are complimented by a management well as suggesting improvements to
● Retaining skilled personnel information and monitoring system, systems and processes. The Internal
may become increasingly which ensures compliance with internal Audit function monitors and evaluates
difficult in India with processes, as well as with applicable the efficacy, and adequacy of internal
increasing demand for talent. laws and regulations. control systems in the Company.
The Company has also identified and
The Company’s internal control
● Tyre manufacturing is documented key internal financial
environment ensures efficient conduct
significantly dependent on controls for critical processes across
of operations, security of assets,
availability of skilled labour. all plants, warehouses and offices
prevention and detection of frauds/
Any labour unrest, shortage wherein financial transactions are
errors, accuracy and completeness
of labour, diversion of labour undertaken. The financial controls are
of accounting records and the timely
to other industries may evaluated for operating effectiveness
preparation of reliable financial
impact tyre production. through management’s ongoing
information. The Company uses
monitoring and review process, and
Internal controls and systems SAP as its core Enterprise Resource
independently by Internal Audit.
Planning (ERP) software. The ERP
The Company believes that internal controls are regularly evaluated, The Head of Internal Audit reports
controls is one of the key pillars of and systems and processes are functionally to the Audit Committee
governance, which provides freedom continuously improved by adopting and administratively to the Chairman
to the management to operate, best-in-class processes and of the Company. Key internal audit
within a framework of appropriate automation and implementing findings are presented to the Audit
checks and balances. Apollo Tyres has the latest IT tools. It has a strong Committee at its quarterly meetings.
a robust internal control framework, culture of internal controls such that
which has been established considering the operating management is not Most importantly, the senior
the nature, size and complexity of its only responsible for revenue and management sets the tone at the top
operations and risks in the business. profitability, but also for maintaining for no tolerance to non-compliance
The framework comprises, inter financial and commercial discipline and promotes a culture of continuous
alia, a well-defined organisation within an internal control framework. innovation and improvement.
structure, roles and responsibilities, Management supports independent
documented policies and procedures, The Company has a well-established, and objective internal auditing and
financial delegation of Authority, ERP independent, and in-house Internal implementation of internal audit
controls, etc. IT policies and processes Audit function that is responsible for recommendations.
providing assurance on compliance

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Overview Leadership Report Discussion and Analysis Reports Statements

Discussion on financial performance with respect to operational performance

The financial statements have been prepared in accordance with the requirement of the Companies Act, 2013, and
applicable accounting standards issued by the Institute of Chartered Accountants of India. The management of Apollo
Tyres Ltd accepts the integrity and objectivity of these financial statements as well as the various estimates and judgments
used therein. The estimates and judgments relating to the financial statements have been made on a prudent and
reasonable basis, in order that the financial statements are reflected in a true and fair manner and also reasonably present
the Company’s state of affairs and profit for the year.
(₹ Million)
Year Ended Year Ended
Sl.
Particulars March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
No.
Standalone Consolidated
1 Revenue from operations
Sale of products 168,899.09 143,067.87 241,223.24 205,808.14
Other operating income 4,111.10 3,426.17 4,458.06 3,667.64
Total (1) 173,010.19 146,494.04 245,681.30 209,475.78
2 Expenses
a) Cost of materials consumed 106,937.72 94,937.71 122,619.59 109,554.29
b) Purchase of stock in trade 9,628.17 8,465.86 26,782.74 22,060.30
c) Changes in inventories of finished goods, 455.54 (3,484.45) (3,031.77) (7,759.56)
stock-in-trade and work-in-progress
d) Employee benefits expense 10,259.15 10,240.18 26,199.21 25,742.37
e) Other expenses 24,620.42 22,026.81 39,975.00 34,137.37
Total (2) 151,901.00 132,186.11 212,544.77 183,734.77
3 Operating profit (EBITDA excluding other 21,109.19 14,307.93 33,136.53 25,741.01
income) (1 - 2)
4 Other income 751.26 1,268.96 410.92 1,234.81
5 Less: Finance costs 4,672.28 3,821.56 5,312.35 4,444.23
6 Less: Depreciation & amortization expenses 9,070.50 8,239.13 14,191.42 13,996.73
7 Profit before share of profit/ (loss) in 8,117.67 3,516.20 14,043.68 8,534.86
associate / joint venture, exceptional items
& tax
8 Share of profit / (loss) in associate / joint venture 0.00 0.00 2.42 0.96
9 Exceptional items 0.00 (12.68) 225.77 (59.08)
10 Profit before tax 8,117.67 3,503.52 14,271.87 8,476.74
11 Less: Provision for tax
Current tax 1,477.15 611.59 2,506.93 947.96
Deferred tax 853.14 281.29 718.58 1,142.78
Total 2,330.29 892.88 3,225.51 2,090.74
12 Profit after tax 5,787.38 2,610.64 11,046.36 6,386.00

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, Current Ratio, Operating Profit Margin and Debt Equity
Ratio as compared to the previous year other than the following:-

Sl. No. Particulars FY23 FY22 % Change Explanation

1 Net Profit Margin 3.35 1.78 87.71 Lower expenses led to increase in net profit margin

CHANGE IN RETURN ON NET WORTH

Sl.No Particulars FY23 FY22 % Change

1 Return on Net Worth* 5.96 2.75 116.81
* Reason for change - Higher profitability led to increase in return on net worth.

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 Apollo Tyres Ltd
Annual Report 2022-23

Sustainability With a clear sustainability vision, the initiatives that would help it to achieve
Company made rapid strides during its global goals.
Sustainability is one of the 5 key the fiscal. In the fiscal, the Company
The Company adopted ISO20400
drivers defined by the Company for its recorded stellar improvement from
framework on Social Responsibility
Vision FY26. To embrace sustainability Level D to Level B in the global CDP to emulate the processes within the
across the operations and entire response on Climate Change. business to its value chain making it
value chain, it has developed its
an integral part of the journey. During
Sustainability Governance Model The Company undertook and
the fiscal, the Company continued to
aligned with the global standard declared its global commitments
focus its CSR activities around four
of ISO 26000. As a responsible and towards reducing Scope 1 and Scope
key thematic areas: Healthcare for
progressive tyre manufacturer, 2 emission intensities, improving
Trucking Community, Solid Waste
it has undertaken the following the water withdrawal intensity,
Management and Sanitation,
commitments towards sustainability: accelerating use of sustainable raw
Livelihood for Rural Women and
materials in the operations, and Biodiversity Conservation. Over 1.4
1. Reduce Scope 1 emission intensity committing to Diversity and Inclusivity million beneficiaries were positively
by 35% in FY26 compared to (D&I) improvement. It has pledged impacted through various CSR
baseline year FY20. to improve its D&I to 12% globally initiatives organised by Apollo Tyres
by 2026 through crucial changes during the fiscal.
2. Reduce Scope 2 emission intensity
in policies and practices, targeted
by 25% in FY26 compared to Since 2019, the Company has
recruiting and building global cross-
baseline year FY20. successfully touched the lives of nearly
cultural teams. It has set monitoring
mechanisms to ensure that its 10 million people.
3. Source 30% of total power usage
from renewable sources by FY26. targets are achieved in line with the

4. Improve water withdrawal

projections.
1.4 million+
intensity by 25% in FY26
The work towards developing a new
production line of passenger vehicle
beneficiaries were
compared to baseline year FY19.
and agriculture tyres with 75% positively impacted
through various
5. Use 40% Sustainable Materials sustainable raw material is a step
[10% Recycled Materials and 30% to showcase our commitment. Its
Biobased materials] by 2030. move to use of non-fossil fuels and CSR initiatives in
increase its renewal energy mix in
its manufacturing are a few other FY23.
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Overview Leadership Report Discussion and Analysis Reports Statements

Environment Social Abhiyaan. Apollo Tyres Foundation

has adopted 75 TB patients as part of
In the fiscal, the Company extended In the fiscal, the Company TB free India initiative. The Company
its efforts in providing waste strengthened its healthcare also organised an awareness
management services across villages interventions, positively benefiting the campaign, flagging off 75 trucks with
which are in vicinity of the Company’s trucking community across 32 centres TB messages sensitising people across
manufacturing locations and at the in 19 states of India. Indian states. This campaign was
Delhi transhipment hub, strengthening rolled out by
its Solid Waste Management and Through the Company’s dedicated
Dr. Mansukh Mandaviya, Union
Sanitation (SPARSH) initiative. healthcare programme for the
Minister of Health and Family
This initiative touched lives of more trucking community, the Company
Welfare and Chemicals and Fertilisers,
than 107,150 beneficiaries in FY23. supports Government of India’s
Government of India.
To support ‘Clean India’ and ‘Total commitment to eliminate Tuberculosis
Sanitation’ campaigns, the Company (TB) in India by 2025. Apollo Tyres In the fiscal, it established four
built 113 toilets, impacting 2,642 Foundation, a CSR wing of Apollo Designated Microscopic Centres
people. It also declared 1 village Open Tyres, partnered with USAID, The (DMCs) in Public Private Partnership
Defecation Free (ODF), increasing Union and Central TB Division and (PPP) model in India, increasing the
the tally of total ODF villages in Tamil Ministry of Health & Family Welfare total count of Company’s DMCs to 17.
Nadu region to 7. for TB elimination. During the year, To provide the necessary treatment
the Company organised two focussed support to HIV positive patients,
In the fiscal, the Company continued campaigns, ‘Jan Andolan for TB free it launched its first Anti-Retroviral
its efforts in conservation of India’ for boosting TB identification Therapy (ART) centre at Vijayawada,
Biodiversity. During the reporting year, amongst trucking community and India in partnership with State AIDS
it planted more than 200 saplings for ‘Partnership for Action against Control Society, Andhra Pradesh.
Mangrove Conservation and organised Tuberculosis’ (PAcT) which was aligned
an annual event on Environment and with ‘Azadi Ka Amrit Mahotsav’. Under the Livelihood for Rural
Nature Quiz, sensitising people on Women programme, the Company
climate change and environment During the fiscal, the Company engages with rural women and
sustainability. Under afforestation positively impacted the lives of over 1.1 farmers for providing them with
project, it monitored 3.5 lakhs trees at million beneficiaries through various livelihood opportunities at their
Tamil Nadu region and 10,000 trees healthcare services. doorsteps. In the reporting year, the
at Gujarat region under Miyawaki Company extended its work in Dahod
Additionally, in the reporting year,
project. district, Limkheda block (declared as
Dr. Mansukh Mandaviya, Union
aspirational district by Govt. of India)
Local initiatives included activities Minister for Health and Family
for creating livelihoods opportunities
towards climate change mitigation Welfare and Chemicals and Fertilisers,
for Schedule Tribe (ST) community.
and watershed management across Government of India distributed
In the reporting fiscal, the livelihood
the Company’s manufacturing nutritional baskets to 5 TB patients
programme has benefited 1,579
locations in India. who are adopted by Ni-Kshay Mitra,
women. 2,013 women received training
Apollo Tyres Foundation under the
in income generation, 1,563 women
Pradhan Mantri TB Mukt Bharat

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 Apollo Tyres Ltd
Annual Report 2022-23

AI / ML has helped the Company in

achieving an increase in productivity.
This productivity increase has also
facilitated the reduction in energy
consumption by 2% - 3%, cutting 365
tons per month of CO2 emission.

Apollo Samadhan, digitalisation of the

complaint process in customer service
function enabled the reduction of the
turnaround time from 3 days to 0.6 day
and enhanced the complaint resolution
satisfaction score from 54% to 64%.

At the Company’s manufacturing

facility in Hungary, data from AI and
ML based solutions and automation
helped in increasing productivity of
the plant.

were linked with income generation Europe to support youth charities. Additionally, this fiscal saw the launch
activities and 5,136 women were linked ‘Soccer School’programme will of Manufacturing Excellence System
with government schemes and availed provide children and young people (MES) across all manufacturing
benefits worth H 6 crore. with exclusive coaching sessions, locations. These systems seamlessly
encouraging exercise, and fostering control the movement of material
One of Company’s livelihood personal development amongst them. and production and help in validating
initiatives, Navya, ran the 5th edition and controlling material issue. It
of its annual ‘Ek Naam’ campaign, in Information Technology also launched a single machine
partnership with CSRBOX to felicitate maintenance system which will help in
eight exemplary women beneficiaries Digitalisation is one of the key
capturing data, reducing the costs of
who created their identity by standing growth pillars for Apollo Tyres. In
maintenance and machine spares.
against social stigmas and biases. In FY23, the Company has made big
the past 5 years, the Company has strides in its digitalisation journey To support innovation and
felicitated the outstanding work of 40 by supporting the advancement of digitalisation, the Company has set up
rural women. business processes and modernisation two digital innovation hubs, one each
of IT infrastructure across the in London and Hyderabad.
In Europe, at Apollo Tyres’ globe. The Company implemented
manufacturing facility in Hungary, Industry 4.0 to increase the efficiency As the cyber threat landscape
the Company organised periodic of manufacturing processes, continues to rise, the Company
blood donation camps in which more revolutionising the way it operates focussed on strengthening endpoint
than 175 employees volunteered. across its value chain. security, email security, external
In another campaign, ‘Shoebox’, threat monitoring and employee
organised by Hungarian Baptist Aid, The fiscal saw the Company making cyber awareness. It partnered with
employees packed donations and gifts advancements in its internal Crowdstrike, a cloud-based, robust,
in shoeboxes which were then given as enterprise processes, using SAP (core AI/ML driven managed detection
Christmas presents to children from ERP system). It has also digitalised and response (MDR) cybersecurity
underserved communities. many HR processes to provide a service that combines technology
plethora of easy-to-use, advanced and human expertise to ensure
At the Enschede plant and Amsterdam digital tools to employees, improving continuous monitoring, detection
office, in the Netherlands, the overall employee experience. As an and response against sophisticated,
Company organised a 2 week-long organisation that’s committed to known / unknown cyber-attacks
charitable drive, namely, ACE-ing it keeping its people and business safe, thus increasing Apollo Tyres’ cyber
for Voedselbank (food bank), in which considerable investments were made security status drastically especially
770 employees participated and to ensure Cyber Security and a safe for endpoints. MDR along with the
donated non-perishable food items to and secure online environment for security operations centre setup in the
underserved communities. each employee. previous fiscal provided the Company
with the much-needed visibility
In FY23, Apollo Tyres, via its Vredestein The Company is determined on
and support to combat the fight
premium tyre brand launched ‘Soccer using Artificial Intelligence (AI) and
against cybercrime. New joiner cyber
School’ events in collaboration Machine Learning (ML) models
security trainings, mandatory cyber
with Manchester United across across all its manufacturing facilities.
awareness trainings for all employees

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

and phishing simulation drives to IT infrastructure to support digital working. As a responsible organisation,
educate users to identify phishing initiatives in the organisation. In it keeps strengthening its health
attacks, emailers/banners/posters the quest of making IT and Digital and safety culture through strategic
on cyber awareness, cyber sessions solutions to be agile and scalable and initiatives across the value chain.
in townhalls are some of the steps in line with the business growth and
taken in FY23 to build cyber culture dynamism, the Company joined hands During the fiscal, the Company’s
in the organisation. Additionally, the with AWS to establish Cloud platform Vice Chairman and Managing
Company collaborated with Cloudsek for hosting new age IT solutions. It has Director, Neeraj Kanwar, launched
and deployed a digital risk monitoring also charted a 3-year roadmap for Apollo Safe Way on World Day for
tool which helped it in continual brand maximising the cloudification of the IT Safety & Health. Apollo Safe Way
scan, combating fake brand pages, systems and solutions. is an integrated health and safety
rogue applications and impersonating ownership mechanism. It is broadly
domains that could have harmed Health, Safety and classified under Individual, Functional
company's brand image. Environment (HSE) and Corporate categories. Apollo Safe
Way incorporates various layers of
The Mantra for IT infrastructure Health, safety, and environment defences across all levels to reinforce
of Apollo Tyres during FY23 was (HSE) management has been the health and safety culture at the
cloudification and transformation of mainstay of Apollo Tyres’ way of workplace.

Apollo Safe Way – Layers of Defence

Individual Functional Corporate

Risk Safety No Go Mandatory Robust Governance

Awareness Absolutes SOP Parameters Courses PPE Safe Infra Process & Review

Hazards
& Risks

Individual Ownership Shared Ownership

Layer of Defence

A self-monitoring, well-being
champion card was introduced Risk Exposure Criteria
as part of individual ownership to
encourage and engage Apolloites
to adopt best-in-class health and
safety practices. This card encouraged
people to pledge personal health and
safety commitments and continuously
H
az
ar

monitor them.
d

At
During FY23, risk management
Work
workshops (Well-Being Champion
Workshops) were conducted across ACTIVITIES Frequency RISK EXPOSURE
the organisation, sensitising people At
about risk exposure at Home, Home
On
Road and Work and how to take
Road
appropriate actions to address the
n
io
t

same. More than 16,000 people across

ra
Du

the globe joined the ‘Apollo Safe Way’

journey through Well-Being Champion
Workshops.

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 Apollo Tyres Ltd
Annual Report 2022-23

Risk Exposure Criteria Occupational Health and Safety and safety interactions. A total of
management system. All plants are 177,943 interventions were achieved
A functional level health and safety certified for the same and third-party to strengthen health and safety at
scorecard comprising of 5 elements audits are conducted every year to Apollo Tyres with HSE interaction
was also launched to enable ownership review and assure the same. index rate of 4377 for million hours.
across line management. Functional
level self-assessment was conducted The Company continuously reviews On-site Gemba is one of the key tools
and further evaluated by cross-plant and monitors its health and safety used by line management to review
and corporate teams to validate key performance indicators. Lost and address health and safety concerns
the same. This led to generation time injury frequency rate (LTIFR) at at site. More than 1,900 Gembas were
of functional health and safety the end of FY23 was reported at 0.41 conducted during the fiscal.
improvement road map which will be per million person-hours worked. Risk
based training is essential to build The Company focussed on its health and
part of next year’s health and safety
people capability at Apollo Tyres and safety journey to drive the motto – Our
journey.
its employees have logged 21,652 health, our safety, our responsibility.
Functional Scorecard Elements training workdays in FY23. The entire senior management, led by
its Chairman, Mr. Onkar Kanwar and
Additionally, in the reporting year, the The Company thrives to create Vice Chairman & Managing Director,
Company also initiated various risk psychological safe workplace Mr. Neeraj Kanwar demonstrated
management projects to strengthen for people and hence encourages leadership by taking personal health
risk management practices in the everyone to share areas of and safety goals.
organisation. All manufacturing improvement in form of near misses,
facilities adopted ISO 45001:2018 unsafe acts, unsafe conditions,

Functional Scorecard Elements

01 02 03 04 05

HSE Risk Reduction Enabling Risk Reduction HSE

Engagement Improvement Individual through Passport
Index Project ownership planned
Inspection

Development in Human During the fiscal, Apollo Tyres was In March 2023, the Company was
Resources and Industrial certified as a ‘Great Place To Work’ by also featured as one of the ‘India’s
Relations the Great Place to Work® Institute Finest Workplaces’ by ET Now, adding
(India). This certification holds special another feather to the cap.
In Apollo Tyres’ pursuit of its vision significance as for the first time, each
‘Driving Progress, Together’ and employee of Apollo Tyres (India) Continuing its spree of winning
fulfilling its purpose of ‘Enabling was invited for the survey and more acclaimed certifications and awards,
Excellence’, it believes that its people than 5,000 employees participated, the Company bagged another
contribute directly to the productivity, earning Apollo Tyres this acclaimed certification of Top Employers in
innovation and overall performance certification. Singapore and the UK for 2023. The
of the Company and in achieving the Top Employers Institute is the global
vision and purpose. authority on recognising excellence in
people practices.
It ensures that the ‘One Family’ value
is upheld at all points of time. It people practices.
earnestly works towards nurturing a
culture where everyone feels valued,
respected, and empowered through These certifications and recognitions
challenging roles, best-in-class people are testament to the commitment of
policies and learning and development Building and Sustaining a High- Apollo Tyres towards its employees.
programmes. Trust, High-Performance Culture

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Learning and development

Apollo Tyres encourages its people
for continuous learning and provide Goal A Learning
avenues for creating new and better Organisation
processes, finding new ways of solving
problems and making organisation-
wide improvements. To maintain the Strategy Self-pace Self Functional
Company’s competitive edge, it is learning Development Development
imperative to develop and nurture a
learning organisation where people are Focus
Business &
ingrained with an innovation mindset Areas Global Strengthening Functional
People Skills
and are dedicated towards their Compliance Leadership Skills
personal as well as professional growth.
Powerd by Percipio & Partners :
Support
Taking cognisance of the importance Regional Training and Learning Initiatives
of learning and development, Apollo
Tyres strives to include employee
development in its culture and To facilitate self-paced learning and A global Apollo Total Quality
encourage its people to discover new self-development, Skills Benchmarks Management (ATQM) training was
talents and skills. In FY23, it focussed of leadership competencies and also rolled out for all employees
on providing continuous learning capabilities were made available across the organisation. Through this
and development at all levels of the to employees through the internal training, people were encouraged to
organisation and fostered a culture that learning platform, Percipio. This incorporate the ATQM framework
supports growth and improvement. This provided Apolloites with an into their everyday approach to
helped the Company in strengthening opportunity to assess their leadership work, strengthening the overall
its learning culture by creating capabilities against a normed effectiveness and efficiency of Apollo
opportunities for employees to learn, population, and based on their as an organisation.
grow, and develop new skills. competency level, access personalised
Overall, it was a great learning year
learning content.
This fiscal, the Company extended for Apollo Tyres with a 5% increase in
the learning and development To support the goal of building a learning engagement of employees,
opportunities as part of Apollo Virtual learning culture in Apollo Tyres, the surpassing the industry benchmarks.
Academy and started its journey Company revamped its learning The overall engagement on learning
towards building a self-learning culture, library in alignment with the WEF’s and self-development was further
encouraging people to take charge of Top 10 skills of 2025. In addition to this, validated by the exponential increase
their self-development. Key learning the Expert Speaks series was launched in learning hours clocked on Percipio
themes were identified as focus areas to bring in an external perspective on from 1,531 hours in FY22 to whopping
that guided the development of key learning topics identified through 36,045 hours in FY23.
learning initiatives globally. partnership with Lee Hecht Harrison.
This series also enabled global peer-to-
peer interaction and learning across

36,045
leadership levels, advancing the
learning culture of a truly global and
multi-generational organisation.

Apart from specific functional learning hours

Additionally, to provide a comfortable
trainings (e.g., Procurement, R&D, clocked in FY23
IT, etc.), the Company also launched
and exceptional start to the new its maiden digital training on Apollo
joiners, the Company introduced a Employee focus and
products through Apollo LXP. This
new induction programme in which engagement
enabled efficient training of products
new employees learn about the for the sales and marketing teams Apollo is home to a multi-cultural, multi-
Company’s legacy, purpose, values, across the globe through a shared generational (balanced representation
products, management, etc. knowledge base of Apollo products. of Gen X, Gen Y and Gen Z) and gender
In addition, the training was also diverse workforce. Apollo Tyres’ culture
extended to Apollo R&D globally, to provides a safe work environment, free
enhance the understanding of the from discrimination and biases. The
Company’s current products as a part Company is committed to its global
of its innovation process for future target of 12% by FY26 for gender
product pipeline. diversity.

111
 Apollo Tyres Ltd
Annual Report 2022-23

such as 5 years, 10 years, 15 years, 20

90% of Apolloites years, 25 years, etc.

voiced that
44
In today’s competitive environment,

Apollo provides
employee engagement has emerged
as one of the most important drivers
Nationalities a working of business success. High employee
engagement promotes the retention
environment free of talent and improves organisation

of discrimination performance. In FY23, the Company

launched its first-ever Apollo Global
and harassment.
8%
Ideathon where people were invited
to share transformative ideas that
Overall, with a Sustainable could help Company anticipate and
Gender diversity Engagement score of 87, the Company solve future challenges. This initiative
continues to upkeep with current provided a safe space to engage with
engagement initiatives and make and listen to employees from diverse
efforts in identified opportunities functions within the organisation and
to build an even more engaged roll out ideas that are in alignment

4
workforce. with business goals.
In line with the ‘One Family’ value of
Additionally, the Company continued
Apollo Tyres, the Company offered a
Generations focussing on its holistic approach
comprehensive Employee Assistance
to employee compensation that
program (EAP). It was designed to
included both monetary and non-
As an organisation that believes in provide help to employees for various
monetary rewards such as benefits,
listening to feedback and taking personal circumstances. The role
work-life balance, recognition, and
adequate actions on it, the Company of EAP is to support and enhance
career development opportunities.
launched the second edition of Apollo the mental and physical well-being
This model helped Apollo Tyres in
Voice, a Global Employee Engagement of employees. On similar lines, the
attracting, retaining, and motivating
Survey. This year, the Company Company has initiated a culture of
its talent by offering a comprehensive
registered 90% participation rate, holistic well-being through a curated
rewards package. Through a merit-
demonstrating the ‘One Family’ value calendar of events under the Apollo
based pay system, the rewards were
of Apollo Tyres. Well-Being Programme with the core
strongly tied to the performance
objective of upholding ‘One Family:
outcomes of employees, helping in
Always Healthy and Absolute Safety’.
rewarding the top performers and
encouraging continuous improvement Industrial relations
and development simultaneously.
The Industrial relations remained
Building and sustaining rewards and cordial during the fiscal year. Regular
recognition programmes will remain at interactions were conducted with all
the core of the HR function’s agenda. stakeholders, management, employee
Some of the programmes included, representatives and the trade union
‘Roll of Honor’, Employee of the Year, leaders, improving productivity,
Long Service Awards, Appreciation cost-reduction, and the working
Racing ahead of the benchmarks; Badges, and several celebration environment of the manufacturing
Making Apollo Tyres a force to work / recognition events. In FY23, a facilities. Various forums enabled
with large percentage of the Company’s effective resolution of employee
global population was impacted grievances and queries. In-house

91% of Apolloites through various global recognition

programmes with over 20,000
training programmes were conducted
to facilitate overall safety and health
believe that they badges exchanged during Chairman’s at the workplace. Many employee

treat each other

Recognition Week. Furthermore, welfare and engagement initiatives
additional recognition activities such were rolled out during the fiscal
with dignity and as Sponteneo and Wall of Fame also
took place. The Company celebrated
across all manufacturing locations
and offices. These initiatives helped
respect regardless and honoured long service of its the Company maintain conducive

of their personal employees achieving key milestones, relations in all its operations.

identities.
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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Board’s Report
Dear Member,

Your Directors have the pleasure in presenting the 50th Annual Report on the business and operations of Apollo Tyres Ltd
(‘the Company’), together with the audited financial statements for the financial year ended March 31, 2023.

FINANCIAL PERFORMANCE
The financial performance of the Company for the financial year ended March 31, 2023 is summarised below:

(₹ Million)
Year Ended Year Ended
Particulars March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Standalone Consolidated
Sale of products 168,899.09 143,067.87 241,223.24 205,808.14
Other operating income 4,111.10 3,426.17 4,458.06 3,667.64
Revenue from operations 173,010.19 146,494.04 245,681.30 209,475.78
Operating profit (EBITDA excluding other income) 21,109.19 14,307.93 33,136.53 25,741.01
Other income 751.26 1,268.96 410.92 1,234.81
Less: Finance costs 4,672.28 3,821.56 5,312.35 4,444.23
Less: Depreciation & amortization expenses 9,070.50 8,239.13 14,191.42 13,996.73
Profit before share of profit/ (loss) in associate / 8,117.67 3,516.20 14,043.68 8,534.86
joint venture, exceptional items & tax
Share of profit / (loss) in associate / joint venture 0.00 0.00 2.42 0.96
Exceptional items 0.00 (12.68) 225.77 (59.08)
Profit before tax 8,117.67 3,503.52 14,271.87 8,476.74
Less: Provision for tax 2,330.29 892.88 3,225.51 2,090.74
Profit after tax 5,787.38 2,610.64 11,046.36 6,386.00

OPERATIONS The standalone revenue from operations of your Company

was ₹173,010.19 million during FY23 as against ₹146,494.04
According to a data from the Rubber Board, for a six-month million during the previous financial year. EBITDA (excluding
period of fiscal 23, the tyre industry cumulatively produced other income) was at ₹21,109.19 million as compared to
more than 98 million units as against 90 million units in first ₹14,307.93 million during the previous financial year. The
six months in FY23. The production of PV tyres (both radial Net Profit for the year under review was ₹5,787.38 million, as
and bias) grew 16% as compared to the same period a year against ₹2,610.64 million in the previous fiscal.
ago. Meanwhile, the Truck & Bus and LCV segment witnessed
a modest growth of 3.4%. The production volumes of two- The consolidated revenue from operations of your Company
wheelers also increased by 5.7% in FY23. was ₹245,681.30 million during FY23, as compared to
₹209,475.78 million in FY22. The consolidated EBITDA
The tyre industry in Europe witnessed a positive trend in (excluding other income) was ₹33,136.53 million for FY23
the first six months for CY22 for the replacement consumer as compared to ₹25,741.01 million for the previous financial
tyres with a 7.4% growth compared to CY21, combined with year. On consolidated basis, the Company earned a Net
10.3% growth for Truck and Bus tyres. However, this could Profit of ₹11,046.36 million for FY23 as against ₹6,386.00
not be sustained for the next six months. According to data million for the previous financial year.
released by the European Tyre and Rubber Manufacturers’
Association (ETRMA), the overall replacement consumer
tyres segment in Europe saw a decline of 2% in CY22 RAW MATERIALS
compared to a year ago, with a sharp decline of 10.1% in The year under review witnessed ~10% increase in the raw
the last six months in the 2nd half of the calendar year. The material cost, touching all time new peaks. The first half
overall replacement truck and bus tyre market remained of the year experienced significant raw material cost push
stable (+1%), despite a sharp decline of 8.2% in the second which was partially mitigated in the later half of the year.
half. Agricultural tyres also posted a decline of 22% in CY22.

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Annual Report 2022-23

The year 2022 has been a year of high inflation and steep DIVIDEND
rise in interest rates by Central Banks across the world. The
energy costs soared in Europe on the back of continued Your Company has a consistent track record of dividend
Russia Ukraine conflict and the sanctions on Russia. China’s payment. The Directors are pleased to recommend the Final
Zero Covid Policy led to some moderation in economic Dividend of H4.00 per Equity Share and a Special Dividend
activity. of H0.50 per Equity Share on occasion of 50th AGM of the
Company, aggregating to H4.50 (i.e. 450%) per Equity Share
The Rupee started the year at a level of 76 against the US having face value of H1 each for FY23 for your approval.
Dollar and weakened to a level of 82 by the end of the year.
The Ocean Freight Rates which had gone upto 10 times of The dividend, if approved, shall be payable to the Members
pre covid levels now stands around 2 times of pre covid levels. holding shares as on cut-off date i.e. July 14, 2023.

The year began with oil prices maintaining its strength due
to geo-political factors. Thereafter it witnessed a slide due RESERVES
to weakness in global demand, Fed interest rate hikes and The amount available for appropriations, including surplus
weak growth outlook in major global economies around the from previous year amounted to ₹98,363.93 million. Surplus
world. Brent Crude Oil rose by 19% on a year-on-year basis in of ₹3,814.29 million has been carried forward to the balance
FY23 on account of geo-political factors, supply disruptions, sheet. A general reserve of ₹17,006.63 million has been
and rise in Natural Gas prices. provided.
Natural Rubber availability in India continued to be deficient
against the requirement of the consuming industry and the BOARD OF DIRECTORS
shortfall was met through imports from ASEAN countries.
The port restriction on imports of natural rubber continued A) Appointment/ Re-appointment of Directors
with imports allowed only at Nhava Sheva and Chennai
ports. The inverted duty structure on natural rubber @ 25% Dr. Jaimini Bhagwati (DIN:07274047) was appointed
or H30/kg whichever is lower continued during the year. as an Independent Director of the Company, not
liable to retire by rotation, to hold office for a term of
The Company has partnered with the Government of 5 consecutive years with effect from February 2, 2023
India in developing new natural rubber plantations in to February 1, 2028 by the Members on March 31, 2023
the Northeast region of India under the Prime Ministers’ through Postal Ballot.
Atma Nirbhar Bharat Scheme. The project is designed to
develop 200,000 hectares of rubber plantations financially In line with the succession planning of the Company & to
supported by major tyre companies with technical support separate the roles of Chairman and Managing Director,
and coordination by the Rubber Board under the Ministry Mr. Onkar Kanwar (DIN:00058921) has stepped
of Commerce. In the first 2 years of its operations till FY23, down from the position of Managing Director and will
27,000 hectares have been planted already, and with a continue to act as Non-Executive Director designated
target of another 50,000 hectares in the FY24 under the as 'Chairman' with effect from February 1, 2023. The
project. This is expected to increase the natural rubber same was approved by the Members of the Company
availability in the next 5 years in the country. at the Annual General Meeting held on July 11, 2022.

The Crude based raw materials – Carbon Black, Synthetic Pursuant to the provisions of Section 152(6) of
Rubber, Fabric and Chemicals also experienced high input the Companies Act, 2013, Mr. Robert Steinmetz
cost inflation during the fiscal. (DIN:00178792) and Mr. Sunam Sarkar (DIN:00058859),
Directors of the Company, who retired by rotation, were
The Company held its virtual Global Partners Summit re-appointed by the Members of the Company at the
2022 for its raw material business partners with over 700 Annual General Meeting held during the year under
participants. During the summit, it shared its vision FY26. review. Further, Mr. Vishal Mahadevia (DIN:01035771)
The Company used the platform to stress the importance and Mr. Francesco Gori (DIN:07413105), Directors of
of technology and the use of sustainable materials for the the Company, are liable to retire by rotation and being
Company. eligible offers themselves for re-appointment at the 50th
Annual General Meeting of the Company.
The Company maintained the agility and resilience in the
supply chain amidst uncertain geo-political environment None of the aforesaid Directors are disqualified under
and volatile markets globally to efficiently supply the raw Section 164(2) of the Companies Act, 2013. Further, they
materials to the plants as per requirements while optimizing are not debarred from holding the office of Director
the inventory with a continued focus on near sourcing and pursuant to order of SEBI or any other authority.
leveraging raw material business partner relationships.

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

The Board is of the opinion that the Independent E) Separate Meeting of Independent Directors
Directors of the Company possess requisite
qualifications, experience and expertise and hold In terms of requirements under Schedule IV of the
highest standards of integrity. Companies Act, 2013 and Regulation 25(3) of SEBI
(Listing Obligations and Disclosure Requirements)
B) Changes in Directors and Key Managerial Regulations, 2015, a separate meeting of the
Personnel Independent Directors was held on March 30, 2023.

During the year under review and between the end of The Independent Directors at the meeting, inter alia,
the financial year and on the date of this report, apart reviewed the following:-
from aforementioned appointment/ re-appointment/
continuation of Directors, there were no changes in • Performance of Non-Independent Directors and
Directors/ Key Managerial Personnel of the Company. Board as a whole.

• Performance of the Chairman of the Company,

C) Declaration by Independent Directors
taking into account the views of Executive Directors
In terms with Section 149(7) of the Companies Act, and Non-Executive Directors.
2013, Independent Directors of the Company have
• Assessed the quality, quantity and timeliness
submitted declarations that they meet the criteria
of flow of information between the Company
of Independence as provided in Section 149(6) of the
Management and the Board that is necessary for
Companies Act, 2013 and also Regulation 16(I)(b) of the
the Board to effectively and reasonably perform
SEBI (Listing Obligations and Disclosure Requirements)
their duties.
Regulations, 2015.

The Independent Directors have also complied with the F) Remuneration Policy
Code for Independent Directors as per Schedule IV of
The Board has, on the recommendation of the Nomination
the Companies Act, 2013. All our Independent Directors
& Remuneration Committee, laid down a Nomination
are registered on the Independent Directors Databank.
& Remuneration Policy for selection and appointment
of the Directors, Key Managerial Personnel and Senior
D) Formal Annual Evaluation
Management and their remuneration. The extract of the
Pursuant to the provisions of the Companies Act, 2013, Nomination and Remuneration Policy covering the salient
the Board is required to carry out annual evaluation features are provided in the Corporate Governance
of its own performance and that of its Committees Report forming part of Board’s Report.
and individual Directors. The Nomination and
The Nomination & Remuneration Policy of the Company
Remuneration Committee (NRC) of the Board also
is available on the website of the Company and the web
carries out evaluation of every Director’s performance.
link is:
Accordingly, the Board and NRC of your Company have
carried out the performance evaluation during the year https://corporate.apollotyres.com/content/dam/orbit/
under review. apollo-corporate/investors/corporate-governance/
codes-policies/codes-policies/nrc-policy.pdf
For annual performance evaluation of the Board as
a whole, it’s Committee(s) and individual Directors
G) Code of Conduct for Directors and Senior
including the Chairman of the Board, the Company has
Management
formulated a questionnaire to assist in evaluation of the
performance. Every Director has to fill the questionnaire The Company has formulated a Code of Conduct for
related to the performance of the Board, its Committees Directors and Senior Management Personnel and has
and individual Directors except himself by rating the complied with all the requirements mentioned in the
performance on each question on the scale of 1 to 5, 1 aforesaid code. For further details, please refer the
being Unacceptable and 5 being Exceptionally Good. Corporate Governance Report.

On the basis of the response to the questionnaire,

a matrix reflecting the ratings was formulated and ISO 20400 CERTIFICATION
placed before the Board for formal annual evaluation
by the Board of its own performance and that of its The Company’s Raw Material Procurement Processes
Committees and individual Directors. The Board was have been successfully validated in a third-party process
satisfied with the evaluation results. for ISO 20400:2017 Sustainable Procurement standard.

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 Apollo Tyres Ltd
Annual Report 2022-23

This standard provides organizations with guidelines for Traxion+ tractor tyres, which became a revolutionary tyre
integrating sustainability practices into their procurement with a strong divergent pattern compared to the usual
processes. Sustainability has been one of the pillars of tractor tyre patterns of its time.
Company’s Vision FY26 and this is an important milestone
in that journey. We are the first Company in the automotive A detailed analysis of the Company’s key initiatives have
sector in India to get the ISO 20400. been shared in the Management Discussion and Analysis
section of the annual report.

PRODUCT & MARKETING

FUTURE OUTLOOK
The Company continued to focus on its key regions – India
and Europe. Also, it continued to build its presence in North According to data from International Monetary Fund (IMF),
America with product releases. the global economy growth is expected to fall from 3.4% in
CY22 to 2.8% in CY23, before inching up to 3.0% in CY24.
In FY23, the APMEA (Asia Pacific/ Middle East/ Africa) Advanced economies are expected to see a muted growth
operation continued its focus on key themes for the from 2.7% in CY22 to 1.3% in CY23. Euro Area will continue in
Indian market – consolidating its leadership position and line with the global slowdown as its growth drops to 0.8% in
expanding market share by introducing new products CY23 and then move upwards to 1.4% in CY24.
across segments. Committed investments in R&D and brand
building continued to fuel the growth journey of the region According to Reserve Bank of India (RBI) and IMF, the overall
to attain market leadership position. growth rate for the Indian economy for FY24 is forecasted to
be between 6.0-6.5%. The Indian economy is likely to benefit
According to internal estimates, the Company retained from increased infrastructure spend, banking credit growth,
its leadership position in the PV replacement market, and a possible rural bounce-back due to easing inflation
now for the third year in a row. With a sharp focus on its and will continue to be the fastest growing economy in the
Premiumisation strategy, EV leadership and dual brand world. On the other side, risks include a lower-than-average
strategy, the Company continued to consolidate its monsoon, weak global demand, slow pickup of private
leadership position in this segment. capex, and FII outflows due to rising US policy rates.

In the CV segment, it continued to introduce new products Amid such uncertain economic and geo-political conditions,
to strengthen its market leadership. It launched the steer the Company has adopted a prudent fiscal approach. The
fitment tyres - 295/90 R20 EnduRace RA and Endutrax MA focus continues to be on investing in good costs and cutting
in the regional and mixed categories. Further, to cater to down bad costs, employee safety and conserving cash. The
the growing ecommerce logistics and perishables sectors, it Company will focus on sustainable profitable growth as it
introduced 9.00 R20 Endurace LD+ and 9.00 R20 Endurace focusses to achieve its Vision targets by FY26.
RA, the LCV range’s succession products for superior
performance delivery. During the fiscal, the Company
MATERIAL CHANGES AND COMMITMENTS
achieved a huge milestone for its flagship CV product,
Endurace LD, posting sales of over 10 million units since No material changes and commitments affecting the
its inception in 2010. This feat has been possible with the financial position of your Company have occurred between
decade long trust customers have placed in the performance the end of the financial year of the Company to which the
of the product. financial statements relate and on the date of this report.
In the two-wheeler segment, the Company expanded its
radial portfolio by introducing a Moto-Cross Tyre brand SIGNIFICANT AND MATERIAL ORDERS PASSED
‘Tramplr’. Several products were added to the ‘Tramplr’ BY REGULATORS
brand portfolio, catering to varying motorcycles. With this
addition, its two-wheeler tyre segment addressability has The Competition Commission of India (CCI) issued an
gone up substantially. order on February 2, 2022 mentioning that it has held five
tyre manufacturers and Automotive Tyre Manufactures
In Europe, the Company continued to expand its offerings Association (ATMA) guilty of contravention of the provisions
to meet the evolving needs of customers. During FY23, it of Section 3 of the Competition Act, 2002 and imposed a
focussed on building on the expansion spree that happened penalty of H425.53 Crores on the Company.
in the past fiscals for PV All-Season tyres, light truck tyres
and winter ranges with Quatrac, Wintrac, Comtrac 2, The Company filed an appeal against the aforesaid order
strengthening its market offering. It celebrated 30 years in before the National Company Law Appellate Tribunal, New
the All-Season segment by launching a new key product to Delhi ('NCLAT'). The NCLAT through its judgement dated
extend its range in strategic segments. In the first half of the December 1, 2022 disposed off the appeals by remanding
fiscal, Quatrac Pro EV was launched, specifically designed for back the case to CCI for review. CCI has filed an appeal in
electric vehicles, commemorating the launch of its first All- the Supreme Court against the Order passed by the NCLAT.
Season Tyre in 1993. In OHT, it completed 25 years journey Hearing to consider admission of appeal is likely to come
of the remarkable and extremely successful Vredestein after September 2023.

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Other than the aforesaid, no significant and material MANAGEMENT DISCUSSION AND ANALYSIS
orders have been passed during the year under review by REPORT
the regulators or courts or tribunals impacting the going
concern status and Company’s operations in future. As required by Regulation 34 (2) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, a detailed Management Discussion and Analysis
CHANGE IN THE NATURE OF BUSINESS, IF ANY Report is presented in a separate section forming part of the
There is no change in the nature of business of your Company Annual Report.
during the year under review.
SUBSIDIARY/ ASSOCIATE COMPANIES
INTERNAL FINANCIAL CONTROLS As the Company follows its vision to become a global tyre
Internal Financial Control (IFC) means the policies and brand of choice, it has multiple Subsidiaries for facilitating
procedures adopted by the Company for ensuring the these operations in various countries. As on March 31, 2023,
orderly and efficient conduct of its business, including your Company had 33 Overseas Subsidiary Companies
adherence to Company’s policies, the safeguarding of its (including step subsidiaries), 1 wholly owned Subsidiary in
assets, timely prevention and detection of frauds and errors, India, 2 Associate Companies and 1 Joint Venture.
the accuracy and completeness of the accounting records,
During the year under review, the Company had made
and the timely preparation of reliable financial information.
an investment of ₹65 million in the equity share capital
The Company’s internal financial control framework is of Apollo Tyres Centre of Excellence Ltd, a wholly owned
commensurate with the size, nature and complexity of Subsidiary of the Company. The Company had also made
its operations and is in line with the requirements of the a second tranche investment of H2.70 million by purchasing
Companies Act, 2013. The Company has identified and 33,750 Equity Shares (0.07%) of CSE Deccan Solar Private
documented key internal financial controls as part of Limited, an Associate Company on May 26, 2022, post
standard operating procedures (SOPs). The SOPs are which, the total investment would aggregate to 12,00,000
designed for critical processes across all plants, warehouses Equity Shares (27.27%) amounting to H95.70 million to get a
and offices wherein financial transactions are undertaken. guaranteed supply of electricity for its Chennai Plant.
The SOPs cover the standard processes, risks, key controls
Apollo Tyres (Malaysia) Sdn. Bhd. (a wholly owned
and each process is identified to a process owner. In addition,
Subsidiary of Apollo Tyres Holdings (Singapore) Pte.
the Company has a well-defined Financial Delegation of
Ltd) is in the process of liquidation from the Companies
Authority (FDOA), which ensures approval of financial
Commission of Malaysia as the Company had changed its
transaction by appropriate personnel.
business model in Malaysia from multiple dealer network to
The Company uses SAP-ERP to process financial transactions Distributor model.
and maintain its books of accounts. The SAP has been setup
During the year under review, ATL Singapore Pte Ltd.,
to ensure adequacy of financial transactions and integrity
(a wholly owned Subsidiary of Apollo Tyres Holdings
& reliability of financial reporting. SAP was implemented
(Singapore) Pte. Ltd) was liquidated and its name got
in the European operations in year 2016. SAP was also
struck off from the Registrar and Accounting and Corporate
implemented at Company’s Greenfield plants in Hungary
Regulatory Authority (ACRA).
and Andhra Pradesh.
Apart from the above, no other Company has become or
The financial controls are evaluated for operating
ceased to be Subsidiary, Associate or Joint Venture of the
effectiveness through management’s ongoing monitoring
Company during FY23.
and review process, and independently by Internal Audit.
The testing of controls by Internal Audit are divided into
three separate categories viz. a) automated controls within MATERIAL SUBSIDIARIES
SAP, b) segregation of duties within SAP and restricted
access to key transactions, c) manual process controls. Regulation 16 of the SEBI (Listing Obligations and Disclosure
Requirements) (Amendment) Regulations, 2018 defines a
In our view, the SOPs, FDOA, SAP-ERP and independent ‘material Subsidiary’ to mean a Subsidiary whose income or
reviews by the Internal Audit help in establishing adequate net worth exceeds ten percent of the consolidated income
internal financial controls with reference to the financial or net worth respectively, of the listed Company and its
statements and such internal financial controls are subsidiaries in the immediately preceding financial year.
operating effectively.

117
 Apollo Tyres Ltd
Annual Report 2022-23

In addition to the above, Regulation 24(1) of the procurement was Natural Rubber in the year FY23.
abovementioned regulations requires that at least one Major sourcing countries are Thailand and Indonesia.
Independent Director on the Board of Directors of the
listed Company to be a Director on the Board of Directors Global Supply Chain team based out of Singapore
of unlisted material Subsidiary, whether incorporated in consolidates and manages Global Ocean Freight,
India or not. For this provision, material Subsidiary means Transport Optimization, Offtake activities, Supply
a Subsidiary whose income or net worth exceeds twenty Chain Cost Analysis, Mould Management and
percent of the consolidated income or net worth respectively, Certification Projects. The team is also responsible for
of the listed entity and its Subsidiaries in the immediately outsourcing finished goods for APMEA and Europe
preceding financial year. Basis this definition, your Company regions for certain specific tyre categories.
has following five material unlisted Subsidiaries viz. Apollo
In addition, Corporate HR team, based out of Singapore,
Tyres (NL) B.V. (Formerly Apollo Vredestein B.V.), Apollo
is managing and facilitating the effective deployment
Tyres (Hungary) Kft., Apollo Tyres (Europe) B.V. (Formerly
of HR systems and policies, in key areas such as Talent
Apollo Tyres B.V.), Apollo Tyres Cooperatief U.A. and Apollo
Acquisition, Rewards & Mobility, Talent Management
Tyres Holdings (Singapore) Pte Ltd. as on March 31, 2023.
and core HR processes, which are aligned to the business
Mr. Akshay Chudasama, an Independent Director of the objectives of Apollo Tyres with the mandate of enhancing
Company was nominated as Director on the Board of Apollo organizational effectiveness and human capital utilization.
Tyres (NL) B.V., Apollo Tyres (Hungary) Kft., Apollo Tyres
Holdings (Singapore) Pte Ltd. and Ms. Pallavi Shroff, an
d) Apollo Tyres (Europe) B.V. (Formerly Apollo
Independent Director of the Company was nominated as Tyres B.V.)
Director on the Board of Apollo Tyres (Europe) B.V & Apollo
Apollo Tyres (Europe) B.V. incorporated in Netherlands is
Tyres Cooperatief U.A, with effect from April 1, 2019.
a Holding Company with two Subsidiaries, Apollo Tyres
Other requirements of Regulation 24 of SEBI (Listing (NL) B.V. and Apollo Tyres (Hungary) Kft. The Company
Obligations and Disclosure Requirements) (Amendment) focuses on developing, sourcing, marketing, sales and
Regulations, 2018 with regard to Corporate Governance for distribution of tyres across various categories including
Subsidiary Companies have been complied with. passenger car, truck & bus, agriculture, industrial
vehicles and bicycles. The group sells passenger vehicle
a) Apollo Tyres (NL) B.V. (Formerly Apollo tyres under two brands, Vredestein and Apollo. The
Vredestein B.V.) Company has its headquarters base at Amsterdam,
Netherlands. Sales operations are managed by various
Apollo Tyres (NL) B.V. is a 100% subsidiary of Apollo Subsidiary Companies across Europe.
Tyres (Europe) B.V. and ultimately held by Apollo Tyres
Ltd, India, a listed multinational organisation, and a e) Apollo Tyres Cooperatief U.A.
global tyre manufacturer.
Apollo Tyres Cooperatief U.A., a direct Subsidiary of the
The Company focuses on developing, manufacturing Company, was incorporated in the Netherlands. The
and sale of various categories of passenger and Company is primarily acting as a Holding Company for
agriculture tyres. The Company has its production all overseas operations.
facility based in Enschede, Netherlands. The Company
has Subsidiary Companies across Europe, engaged in
CONSOLIDATED FINANCIAL STATEMENTS
the sales and distribution of tyres.
As stipulated by Regulation 33 of the SEBI (Listing Obligations
b) Apollo Tyres (Hungary) Kft. and Disclosure Requirements) Regulations, 2015 the
Consolidated Financial Statements have been prepared by
Apollo Tyres (Hungary) Kft. is one of the latest
the Company in accordance with the applicable Accounting
manufacturing facility within Apollo Tyres group. The
Standards. The audited Consolidated Financial Statements,
Company continued to ramp up its production capacity
together with Auditors’ Report, form part of the Annual Report.
during the year for both passenger & commercial tyres
production line. As per the provisions of Section 129 of the Companies Act,
2013, the consolidated financial statements of the Company,
During FY23, the Company has made required
its Subsidiaries and Associates are attached in the Annual
investments for debottlenecking and line balancing the
Report. The annual accounts of Subsidiaries and Associates
capacity in passenger vehicle tyres.
will be made available to shareholders on request and
c) Apollo Tyres Holdings (Singapore) Pte. Ltd. will also be kept for inspection by any shareholder at the
Registered Office and Corporate Office of your Company.
The principal activities of the Company are of sourcing A statement in Form AOC-1 containing the salient features
raw materials for Apollo Tyres manufacturing plants of the financial statements of the Company’s Subsidiaries,
in India and Europe besides the provision of other Associates and Joint Venture for the year ended March 31,
strategic services to the group. 56% of the raw material 2023 is also attached with financial statements.

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

DEBENTURES Based on the recommendation of the Audit Committee,

M/s. N.P. Gopalakrishnan & Co., Cost Accountants, being
The following series of Secured Redeemable Non-Convertible eligible, have also been appointed by the Board as the
Debentures (NCDs) were issued and allotted during the year Cost Auditors for FY24 subject to Members’ approval. The
under review through Private Placement: - Company has received a letter from them to the effect that
their re-appointment would be within the limits prescribed
No. of under Section 141(3)(g) of the Companies Act, 2013 and that
NCDs they are not disqualified for such re-appointment within the
Value
Sl. Series of @ Face Date of meaning of Section 141 of the Companies Act, 2013. The
(J in
No. NCDs Value of Allotment remuneration to be paid to M/s. N.P. Gopalakrishnan & Co.,
Million)
J10,00,000 for FY24 is subject to ratification by the shareholders at the
each ensuing AGM.
1 Apollo 2,500 2,500 September
Cost records as specified by the Central Government under
Tyres 6.93% 13, 2022
Sub-Section (1) of Section 148 of the Companies Act, 2013
2023 Opt I
are made and maintained by the Company.
2 Apollo 2,500 2,500 September
Tyres 7.53% 13, 2022
2027 Opt II SECRETARIAL AUDITOR
The aforesaid NCDs are listed on the debt segment of the Pursuant to the provisions of Section 204 of the Companies
National Stock Exchange of India Limited (NSE). Act, 2013 and the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, your
Company had re-appointed M/s. PI & Associates, Company
DEPOSITS
Secretaries as Secretarial Auditor of the Company for FY23
During the year under review, your Company did not accept to undertake secretarial audit of the Company.
deposits covered under Chapter V of the Companies Act, 2013.
The Secretarial Audit Report does not contain any
qualification, reservation or adverse remark. Secretarial
AUDITORS Audit Report given by Secretarial Auditor is annexed with
the report as Annexure I.
M/s. S.R. Batliboi & Co. LLP (Firm Registration No. 301003E/
E300005), Chartered Accountants (Member firm of Ernst & M/s. PI & Associates, Company Secretaries have been re-
Young Global) were appointed as the Statutory Auditors of appointed to conduct the Secretarial Audit of the Company
the Company for a period of 5 years, from the conclusion of for FY24. They have confirmed that they are eligible for the
49th AGM until the conclusion of the 54th AGM, at the AGM said appointment.
held on July 11, 2022.

MEETINGS OF THE BOARD OF DIRECTORS

AUDITORS’ REPORT
A calendar of meetings is prepared and circulated in advance
The report given by M/s. S.R. Batliboi & Co. LLP, Chartered to the Directors. During the year, 5 (five) Board meetings
Accountants, Statutory Auditors on financial statements were convened and held. The intervening gap between
of the Company for FY23 forms part of the Annual Report. the meetings was within the period prescribed under the
The comments on statement of accounts referred to in the Companies Act, 2013 and SEBI (Listing Obligations and
report of the Auditors are self explanatory. The Auditors’ Disclosure Requirements) Regulations, 2015. The details
Report does not contain any qualification, reservation or of all Board/ Committee meetings held are given in the
adverse remark. Corporate Governance Report.

During the year under review, the Auditors had not reported
any matter under Section 143(12) of the Companies Act, AUDIT COMMITTEE
2013. Therefore, no detail is required to be disclosed under
The details of the Audit Committee including its composition
Section 134(3)(ca) of the Companies Act, 2013.
and terms of reference mentioned in the Corporate
Governance Report forms part of the Board’s Report.
COST AUDIT
The Board, during the year under review, had accepted all
M/s. N.P. Gopalakrishnan & Co., Cost Accountants, were recommendations made to it by the Audit Committee.
appointed with the approval of the Board to carry out the
cost audit in respect of the Company’s plants at Perambra
(Kerala), Limda (Gujarat), Chennai (Tamil Nadu) and
VIGIL MECHANISM
Chinnapandur (Andhra Pradesh) as well as Company’s The Company has formulated a vigil mechanism through
leased operated plant at Kalamassery (Kerala) for FY23. Whistle Blower Policy to deal with instances of unethical

119
 Apollo Tyres Ltd
Annual Report 2022-23

behaviour, actual or suspected, fraud or violation of basis and do not attract the provisions of Section 188 of the
Company’s code of conduct or ethics policy. The details Companies Act, 2013. During the year, the Company had
of the policy are explained in the Corporate Governance not entered into any contract/ arrangement/ transaction
Report and also posted on the website of the Company. with related parties which could be considered material in
accordance with the policy of the Company on materiality
of related party transactions.
COMMITTEES OF BOARD
Suitable disclosures as required by the Indian Accounting
Pursuant to the requirement under Companies Act, 2013
Standards have been made in the notes to the financial
and SEBI (Listing Obligations and Disclosure Requirements)
statements. The policy on related party transactions as
Regulations, 2015, the Board of Directors has constituted
approved by the Board is uploaded on the Company’s
various Committees of Board such as Audit Committee,
website.
Nomination & Remuneration Committee, Stakeholders
Relationship Committee, Business Responsibility and
Sustainability Committee, Risk Management Committee MANAGERIAL REMUNERATION
and Corporate Social Responsibility Committee. The details
of composition and terms of reference of these Committees a) The details required pursuant to Rule 5(1) of the
are mentioned in the Corporate Governance Report. Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, are provided in the
Corporate Governance Report.
SHARE CAPITAL
b) During the year under review, Mr. Neeraj Kanwar
During the year under review the issued, subscribed (DIN:00058951), Vice Chairman & Managing Director,
and paid-up Equity Share Capital of the Company was also received remuneration from Apollo Tyres (UK)
635,100,946 equity shares of ₹ 1/- each. There was no change Holdings Ltd. (Formerly Apollo Tyres (UK) Pvt. Ltd.),
in the capital structure of the Company. wholly owned Subsidiary of the Company.

a) Issue of equity shares with differential rights

PARTICULARS OF EMPLOYEES
Your Company has not issued any equity shares with
differential rights during the year under review. Particulars of employees as required in terms of the
provisions of Section 197 of the Companies Act, 2013, read
b) Issue of sweat equity shares
with Rule 5(2) & (3) of the Companies (Appointment and
Your Company has not issued any sweat equity shares Remuneration of Managerial Personnel) Rules, 2014, are set
during the year under review. out in Annexure A to the Board’s Report.
c) Issue of employee stock options
Your Company has not issued any employee stock
PREVENTION OF SEXUAL HARASSMENT AT
options during the year under review. WORKPLACE

d) Provision of money by Company for purchase Your Company has in place a formal policy for prevention
of its own shares by employees or by trustees of sexual harassment of its employees at workplace and
for the benefit of employees the Company has complied with provisions relating to
the constitution of Internal Committee under the Sexual
Your Company has not made any provision of money for Harassment of Women at Workplace (Prevention, Prohibition
purchase of its own shares by employees or by trustees and Redressal) Act, 2013. The Company conducts, from
for the benefit of employees during the year under review. time to time, awareness sessions on prevention of sexual
harassment at workplace for its employees.
PARTICULARS OF LOANS, GUARANTEES OR During the year under review, there were no cases filed
INVESTMENTS UNDER SECTION 186 pursuant to the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013.
During the year under review, your Company has not given
Furthermore, there was no pending complaint/ case at the
any loan or guarantee which is covered under the provisions
beginning as well as at the end of financial year.
of Section 186 of the Companies Act, 2013. However, details
of investments made during the year are given under notes
to the financial statements. HEALTH, SAFETY AND ENVIRONMENT
As a firm commitment to Health, Safety and Environment
RELATED PARTY TRANSACTIONS (HSE), the year saw multiple initiatives to implement and
review the HSE plans and achieve the defined KPIs. For
All contracts/ arrangements/ transactions entered by the
details on HSE, please refer to Management Discussion and
Company during the financial year with related parties were
Analysis Report.
in the ordinary course of business and on an arm’s length

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

AWARDS AND RECOGNITIONS

In its constant quest for growth and excellence, your Company was honoured and recognised at various forums.

The Chennai plant of your Company has been awarded the Deming Prize, perhaps the most important recognition in the field
of Quality. This award is sponsored by the Japanese Union of Scientists and Engineers and since 1951 when it was instituted,
it is the gold standard in quality that all around the world aspire to. This was a moment of great pride for all of us at Apollo
Tyres.

The Company bagged certification of Top Employers in Singapore and the UK for 2023. The Top Employers Institute is the
global authority on recognising excellence in people practices.

Other prominent Awards are listed below for your reference.

Name of the Award Category Awarded by

Compliance Team 2022 Compliance Legasis Services and Bombay Stock Exchange
ASSOCHAM WORKVISION 2022 HR Effective Drivers of Recruitment, ASSOCHAM
Excellence Award Engagement & Retention
18th Indo-American Corporate Indo-American Chamber of Commerce (IACC)
Excellence (IACE) Awards 2022
SEEM National Energy Management Industries & Facilities (Tyres) Society of Energy Engineers and Managers
Award (SNEMA) (SEEM)
Best Kaizen, Best Idea and Maximum Water Conservation and Confederation of Indian Industry (CII)
Contributor of Ideas Management (Reduce, Recycle,
Reuse and Regenerate)
Green Champions Award 2021 Government of Tamil Nadu
Good Design Awards 2021 Transportation category Chicago Athenaeum: Museum of architecture
and design and the European Centre for
Architecture Art Design and Urban Studies
ISO 20400 certification for Sustainable procurement
Sustainable Procurement
Best Organisation for Promoting QC Quality Circle Forum of India

RISK MANAGEMENT activities are linked with National Development Goals and
globally with the Sustainable Development Goals (SDGs).
The Company has constituted a Risk Management The Company has a CSR team, which exclusively works
Committee (RMC) of the Board comprising of Directors towards achievement of CSR goals of the organisation. All
and Senior Executives of the Company. The RMC has a the CSR activities of the Company are routed through a
Risk Management Charter and Policy that is intended to registered trust (Apollo Tyres Foundation) and functions
ensure that an effective Risk Management framework with close monitoring and guidance of the CSR committee.
is established and implemented within the organisation.
The Company has also formed Internal Risk Committees In the reporting year, the Company has undertaken various
(IRCs), which review risk registers for Asia Pacific Middle initiatives related to Healthcare Programme for Trucking
East Africa (APMEA) region including India, Europe region, Communities, Solid Waste Management and Sanitation
United States (US) region and Corporate Functions headed Programme for Communities, Livelihood for Underprivileged
by President (APMEA), President (Europe), Group Head Women, Biodiversity Conservation and Philanthropy
(New Market & Channels) and Chief Financial Officer as Initiatives, focussing on eradicating hunger and poverty,
Chairperson of the respective Committees. The IRCs review preventive health and promoting education.
each risk on a quarterly basis and evaluate its impact
Corporate Social Responsibility Report, pursuant to clause
and plans for mitigation. Further details about the RMC
(o) of sub section (3) of Section 134 of the Act and Rule 9
including its composition are mentioned in the Corporate
of the Companies (Corporate Social Responsibility) Rules,
Governance Report which forms part of the Board's Report.
2014 including salient features mentioned under outline of
Company's CSR policy forms part of this Report as Annexure II.
CORPORATE SOCIAL RESPONSIBILITY
The CSR Policy of the Company is available on the website
The Company initiated its CSR activities way before the of the Company and the weblink is: - https://corporate.
Companies Act, 2013 came in existence. The Company has a apollotyres.com/content/dam/orbit/apollo-corporate/
well-defined CSR policy which is made as per the requirement investors/corporate-governance/codes-policies/codes-
of Section 135 of the Companies Act, 2013. All the CSR policies/atl-csr-policy.pdf

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Annual Report 2022-23

BUSINESS RESPONSIBILITY AND SUSTAINABILITY (a) in the preparation of the annual accounts for the
REPORT financial year ended March 31, 2023, the applicable
accounting standards had been followed along with
SEBI (Listing Obligations and Disclosure Requirements) proper explanation relating to material departures;
Regulations, 2015, as amended from time to time, has
mandated the top 1000 Listed Companies by market (b) the Directors had selected such accounting policies and
capitalisation to include Business Responsibility and applied them consistently and made judgments and
Sustainability Report ('BRS Report') in their Annual Report estimates that are reasonable and prudent so as to
with effect from FY23. This BRS Report will replace the give a true and fair view of the state of affairs of the
existing Business Responsibility Report. Company at the end of the financial year and of the
profit and loss of the Company for that period;
Accordingly, a BRS Report describing the initiatives taken by
the Company from an environmental, social and governance (c) the Directors had taken proper and sufficient care for
perspective, forms part of this Report as Annexure III. the maintenance of adequate accounting records
in accordance with the provisions of this Act for
safeguarding the assets of the Company and for
CONSERVATION OF ENERGY, TECHNOLOGY
preventing and detecting fraud and other irregularities;
ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGO (d) the Directors had prepared the annual accounts on a
going concern basis;
Particulars required under Section 134(3)(m) of the
Companies Act, 2013 read with Rule 8 of the Companies (e) the Directors had laid down internal financial controls
(Accounts) Rules, 2014, regarding conservation of energy, to be followed by the Company and that such internal
technology absorption and foreign exchange earnings and financial controls are adequate and were operating
outgo, are given in Annexure IV, forming part of this report. effectively; and

(f) the Directors had devised proper systems to ensure

ANNUAL RETURN compliance with the provisions of all applicable laws
and that such systems were adequate and operating
As per Section 134(3)(a) of the Companies Act, 2013,
effectively.
the Annual Return referred to in Section 92(3) of the
said Act has been placed on the website of the Company
www.apollotyres.com under the Investors Section (Refer link: SECRETARIAL STANDARDS
https://corporate.apollotyres.com/investors/corporate-
governance/#?activeTab=Others). During the year under review, your Company had complied
with all the applicable Secretarial Standards.

CORPORATE GOVERNANCE REPORT

ACKNOWLEDGEMENT
Your Company always places major thrust on managing
its affairs with diligence, transparency, responsibility and Your Company’s organisational culture upholds
accountability thereby upholding the important dictum professionalism, integrity and continuous improvement
that an organisation’s corporate governance philosophy is across all functions, as well as efficient utilisation of the
directly linked to high performance. Company’s resources for sustainable and profitable growth.

The Company is committed to adopting and adhering to Your Directors wish to place on record their appreciation
established world-class corporate governance practices. The to the respective State Governments of Kerala, Gujarat,
Company understands and respects its fiduciary role and Haryana, Tamil Nadu and Andhra Pradesh and the National
responsibility towards its stakeholders and society at large, Governments of India, Netherlands and Hungary. We also
and strives to serve their interests, resulting in creation of thank our customers, business partners, members, bankers
value and wealth for all stakeholders. and other stakeholders for their continued support during
the year. We place on record our appreciation for the
The compliance report on corporate governance and a
contribution made by all employees towards the growth of
certificate from M/s. S.R. Batliboi & Co. LLP, Chartered
your Company.
Accountants, Statutory Auditors of the Company, regarding
compliance of the conditions of corporate governance, as
stipulated under Chapter IV of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 is attached
herewith as Annexure V to this report. For and on behalf of the Board of Directors

DIRECTORS’ RESPONSIBILITY STATEMENT

ONKAR KANWAR
As required by Section 134(3)(c) of the Companies Act, 2013, Place: Amsterdam Chairman
your Directors state that: Date: May 9, 2023 DIN: 00058921

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Overview Leadership Report Discussion and Analysis Reports Statements

Annexure I

FORM NO. MR - 3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To,
The Members,
Apollo Tyres Limited
(L25111KL1972PLC002449)

We have conducted the Secretarial Audit of the compliance (ii) Due to the inherent limitations of an audit including
of applicable statutory provisions and the adherence internal, financial and operating controls, there is an
to good corporate practices by Apollo Tyres Limited unavoidable risk that some misstatements or material
(hereinafter called “the Company”). The Secretarial non-compliances may not be detected, even though the
Audit was conducted in a manner that provided us with a audit is properly planned and performed in accordance
reasonable basis for evaluating the corporate conducts/ with the Standards.
statutory compliances and expressing our opinion thereon
for the financial year ended on March 31st, 2023 (“Audit (iii) Our audit involves performing procedures to obtain audit
Period”). The principal business activity of the Company is evidence about the adequacy of compliance mechanism
the manufacturing and sale of automotive tyres. exist in the Company to assess any material weakness,
and testing and evaluating the design and operating
effectiveness of compliance mechanism based upon the
Limitation of the Auditors assessed risk. The procedures selected depend upon the
auditor’s judgement, including assessment of the risk of
(i) Based on our verification of the Company’s books, papers,
material non-compliance whether due to error or fraud.
minute books, forms and returns filed, and other records
maintained by the Company and also the information (iv) We believe that the audit evidence we have obtained
provided by the Company, its officers, agents and is sufficient and appropriate to provide a basis for our
authorized representatives during the conduct of audit opinion on the Company’s Board processes and
Secretarial Audit, we hereby report that in our opinion, compliance-mechanism.
the Company has, during the Audit Period, complied with
the statutory provisions listed hereunder; and We have examined the books, papers, minute books, forms
and returns filed and other records maintained by the
(ii) Based on the management representation, confirmation Company for the Audit Period, according to the provisions of:
and explanation wherever required by us, the Company
has proper Board-processes and compliance-mechanism (i) The Companies Act, 2013 (‘the Act’) and the rules made
in place to the extent, in the manner and subject to the thereunder;
reporting made hereinafter.
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the rules made thereunder;
Auditors Responsibility
(iii) The Depositories Act, 1996 and the Regulations and
(i) Our responsibility is to express the opinion on the Bye-laws framed thereunder;
compliance with the applicable laws and maintenance
of records based on audit. We conducted our audit in (iv) Foreign Exchange Management Act, 1999 and the
accordance with the Guidance Note on Secretarial Audit rules and regulations made thereunder to the extent
(“Guidance Note”) and Auditing Standards issued by of Foreign Direct Investment and Overseas Direct
the Institute of Company Secretaries of India (“ICSI”). Investment and External Commercial Borrowings;
The Guidance Note and Auditing Standards require that
(v) The following Regulations and Guidelines prescribed
we comply with statutory and regulatory requirements
under the Securities and Exchange Board of India Act,
and also that we plan and perform the audit so as to
1992 (‘SEBI Act’): -
obtain reasonable assurance about compliance with
applicable laws and maintenance of records.

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a. The Securities and Exchange Board of India a. Pneumatic Tyres and Tubes for Automotive Vehicles
(Substantial Acquisition of Shares and Takeovers) (Quality Control), Order, 2009; and
Regulations, 2011;
b. Bureau of India Standards Act, 1986 and the Rules made
b. The Securities and Exchange Board of India thereunder as applicable to Tyre Industry.
(Prohibition of Insider Trading) Regulations, 2015;
We have also examined compliance with the applicable
c. The Securities and Exchange Board of India (Issue of clauses of the following:
Capital and Disclosure Requirements) Regulations,
2018; (i) Secretarial Standards issued by the ICSI wherein the
Company is generally complying with the standards; and
d. The Securities and Exchange Board of India (Share
Based Employee Benefits and Sweat Equity) (ii) The Listing Agreements entered into by the Company
Regulations, 2021; (Not applicable to the Company with the Stock Exchange(s) and Listing Regulations.
during the audit period)
During the period under review, the Company has complied
e. The Securities and Exchange Board of India with the provisions of the Act, Rules, Regulations, Guidelines,
(Issue and Listing of Non-Convertible Securities) Standards, etc. as mentioned hereinabove.
Regulations, 2021;
f. The Securities and Exchange Board of India We further report that:
(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act (i) The Board of Directors of the Company was duly
and dealing with client; constituted with proper balance of Executive
Director(s), Non-Executive Directors and Independent
g. The Securities and Exchange Board of India
Directors during the Audit Period. The changes in the
(Delisting of Equity Shares) Regulations, 2021;
composition of the Board of Directors that took place
(Not applicable to the Company during the audit
during the Audit Period were carried out in compliance
period)
with the provisions of the Act. The following changes
h. The Securities and Exchange Board of India took place during the audit period:
(Buy-back of Securities) Regulations, 2018;
(Not applicable to the Company during the audit (a) Dr. Jaimini Bhagwati (DIN:07274047) was appointed
period) as an Independent Director of the Company for a
period of 5 consecutive years from February 02,
i. The Securities and Exchange Board of India 2023 to February 01, 2028.
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 (hereinafter referred to as ‘Listing (ii) Further, the composition of all statutory committees
Regulations’). was also in compliance with the Act and applicable
Rules and Regulations.
It is further reported that with respect to the compliance of
other applicable laws, we have relied on the representation (iii) Adequate notice was given to all directors to schedule
made by the Company and its officers for system and the Board Meetings, Statutory Committee Meetings,
mechanism framed by the Company for compliances under agenda and detailed notes on agenda were sent
general laws (including Labour Laws, Tax Laws, etc.) at least seven days in advance and a system exists
for seeking and obtaining further information and
Based upon the Management Representation wherever clarifications on the agenda items before the meeting
required from the Company, we further report that there and for meaningful participation at the meeting.
are adequate systems and processes in the Company
commensurate with the size and operations of the (iv) The majority of decisions were carried through and
Company to monitor and ensure compliance with the there were no instances where any director expressed
following pertinent laws, rules, regulations and guidelines as any dissenting views.
specifically applicable to the Company: -

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We further report that in our opinion, the Company has, India (CCI) dated August 31, 2018 wherein NCLAT has
in all material respects, adequate systems and processes remanded the matter back to the CCI to hear the
commensurate with the size and operations of the company parties again and review its findings.
to monitor and ensure compliance with applicable laws,
rules, regulations, and guidelines.

We further report that during the audit period the following

events have occurred in the Company having major bearing
on the Company’s affairs:

i. That the Company issued 5,000 fully Secured, Rated,

For PI & Associates
Listed, Redeemable Non-Convertible Debentures ("NCDs”)
Company Secretaries
at a face value of H10,00,000 (Rupees Ten Lakhs)
aggregating to H500,00,00,000 (Rupees Five Hundred
Crores), 2,500 each to ICICI Bank Ltd and Axis Bank Ltd. Ankit Singhi
Partner
ii. The Company has received an order dated December 1, FCS No.: 11685
2022 from National Company Law Appellate Tribunal Place: New Delhi CP No.: 16274
(NCLAT) in respect of the appeal filed by the Company Date: 09.05.2023 Peer Review No.: 1498/2021
against the order of Competition Commission of UDIN: F011685E000281207

Disclaimer :
This report is to be read with our letter of even date which in annexed as "Annexure A" which forms an integral part of this report.

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 Apollo Tyres Ltd
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To,
The Members,
Apollo Tyres Limited

Our Secretarial Audit Report of even date is to be read along with this letter:

(i) Maintenance of secretarial records is the responsibility of the management of the Company. Our Responsibility is to
express an opinion on these secretarial records based on our audit.

(ii) We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the secretarial records. The verification was done on sampling basis to ensure that correct
facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable
basis for our opinion.

(iii) We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

(iv) Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulation
and happening of events etc.

(v) The compliance of the provisions of corporate and other sector specific laws as applicable on the Company, rules,
regulations, standards is the responsibility of management. Our examination was limited to the verification of procedures
on sampling basis.

(vi) The Secretarial Audit Report is neither an assurance as to future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.

For PI & Associates

Company Secretaries

Ankit Singhi
Partner
FCS No.: 11685
CP No.: 16274
Place: New Delhi Peer Review No.: 1498/2021
Date: 09.05.2023 UDIN: F011685E000281207

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Annexure II

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILTY (CSR)

ACTIVITIES

1. Brief outline on CSR Policy of the Company. Programmes proposed to be undertaken

Care for society is one of the core Apollo values and all Following are the proposed initiatives which will be
the CSR initiatives are designed to address the need of undertaken by the Company:
the community. The main aim of the CSR activities is
to create positive impact on the everyday lives of our 1) Healthcare Programme for trucking community
stakeholders. Environment is also considered as a crucial at 32 transhipment locations in 19 States (ongoing.
stakeholder, hence Biodiversity features as a global Incorporate more health services at the locations
initiative with projects ranging in India and Hungary. and explore partnership for greater outreach.)

The CSR initiatives are delivered through Apollo Tyres 2) Solid Waste Management and Sanitation
Foundation (ATF) registered in 2008 as a Trust. All the CSR Programme (SPARSH) in different transhipment
initiatives of the organisation are aligned with National hubs and communities around manufacturing
Goals and Sustainable Development Goals (SDGs). locations (ongoing). Introduction of up-cycle
products from waste. End of Life Tyre Playgrounds
Apart from mapping the core initiatives with SDGs,
at selected locations and toilet with bathing facility
the organisation emphasises on linking the initiative
initiative to promote safe sanitation at Chennai,
with SDG 17: Partnership for Goals. Our focus is on
Baroda and Chinnapanduru locations.
collaborating with like-minded organisations for project
implementation and wider outreach. Our ethos is to 3) Livelihood for underprivileged women: Income
work in collaboration.
generation trainings, linking more number of
The organisation has categorised its CSR initiatives in 4 beneficiaries with financial institution, local market
core thematic areas: for business development and with government
schemes and involving more number of women
1. Healthcare for Trucking Community; in livelihood activities. Expansion at Baroda,
2. Solid Waste Management and Sanitation; Kottayam, Chennai, and AP location (ongoing). One
new location Dahod (aspirational district-Gujarat)
3. Livelihood for underprivileged Women; initiated in the FY23 for livelihood activities with
4. Biodiversity Conservation. Scheduled Tribe community.

In addition to the above there are a few Local 4) Biodiversity Conservation: Mangrove conservation
Initiatives around our manufacturing locations. These project at Kannur, Kerala. Conservation and
are Watershed Management and Renewable Energy maintenance of biodiversity parks in Kochi, Tree
Proliferation projects. plantation with objective of carbon sequestration
at Tamil Nadu (ongoing), Miyawaki afforestation
Further, the organisation also undertakes philanthropic
project at Gujarat (ongoing).
initiatives through Taru Foundation.
5) Local Initiatives: Watershed management project
CSR policy of Apollo Tyres Ltd covers all the activities
such as pond conservation and drinking water
which are mentioned in Schedule VII of Companies Act,
2013 but does not include the following: project around manufacturing units. Support to
Anganwadi Centres etc.
1. Activities undertaken in pursuance of normal course
of business of the Company. 6) Philanthropic Initiatives: Treatment support to the
patient suffering from rare neurological disorder,
2. Activities that benefit only the employees of the
vocational training, and education support to
Company and their families.
underprivileged youth through (Deepstambh
3. Contribution to any political party. NGO), Jalgaon, Maharashtra.

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2. Composition of CSR Committee:

Sl. Name of Director Designation/ Number of meetings Number of meetings

No. Nature of of CSR Committee of CSR Committee
Directorship held during the year attended during the year
1 Onkar Kanwar Chairman 2 2
2 General Bikram Singh (Retd.) Independent Director 2 2
3 Sunam Sarkar Non- Executive Director 2 2
4 Lakshmi Puri* Independent Director 2 1
*Ms. Lakshmi Puri, Independent Director was appointed as a Member of CSR Committee by the Board at it meeting held on May 12, 2022.

3. Provide the web-link (s) where Composition of CSR committee, CSR Policy and CSR projects approved by the board are
disclosed on the website of the company.

https://corporate.apollotyres.com/sustainability-and-ethics/policy-and-documents/#?activeTab=Policies

4. Provide the executive summary along with weblink (s) of impact assessment of CSR Projects carried out in pursuance of
sub-rule (3) of rule 8, if applicable: Not Applicable

5. (a) Average net profit of the Company as per sub-section (5) of Section 135: J 6612.59 million

(b) Two percent of average net profit of the Company as per sub-section (5) of Section 135: J 132.25 million

(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years.: Nil

(d) Amount required to be set off for the financial year, if any: Nil

(e) Total CSR obligation for the financial year ((b) +( c) –(d)).: J 132.25 million

6. (a) Amount spent on CSR Projects (both ongoing project and other than ongoing project): J 125.95 million

(b) Amount spent in Administrative Overheads: J 6.30 million

(c) Amount spent on Impact Assessment, if applicable: Nil

(d) Total Amount spent for the financial year ((a)+(b)+(c)): J 132.25 million

(e) CSR amount spent or unspent of the financial year: J 132.25 million

Amount Unspent (in J million)

Total Amount transferred
Total Amount Spent for the Amount transferred to any fund specified
to Unspent CSR Account
Financial Year under Schedule VII as per second proviso to
as per sub section (6) of
(in million) sub section (5) of Section 135
Section 135
Date of Name of Date of
Amount Amount
transfer the Fund transfer
H 132.25 Nil NA NA NA NA

(f) Excess amount for set off, if any

Sl. Particular Amount

No. (in J)
(1) (2) (3)
(i) Two percent of average net profit of the Company as per sub section(5) of Section 135 Nil
(ii) Total amount spent for the Financial Year Nil
(iii) Excess amount spent for the financial year [(ii)-(i)] Nil
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous Nil
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] Nil

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7. Details of Unspent CSR amount for the preceding three financial years:

1 2 3 4 5 6 7 8
Sl. Preceding Amount Balance Amount Amount transferred Amount Deficiency, if
No. Financial transferred amount in spent in to a fund as specified remaining to any
Year(s) to Unspent CSR unspent the Financial under Schedule VII be spent in
Account under CSR account Year as per second proviso succeeding
sub section (6) of under sub- (in J million) to sub section (6) of financial
Section 135 section Section 135 years
(in J million) (in J million) (in J million)
Amount (in Date of
J million) transfer.

1. 2022-23 0 0 0 0 0 0
2. 2021-22 0 23.28 23.28 0 0 0
3. 2020-21 23.28 23.28 0 0 0 0

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility Amount spent in the
Financial Year:

Yes

If yes, enter the number of capital assets created/acquired 6

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent
in the Financial Year:

Sl. Short Particulars Pincode of the Date of Amount of Details of entity/ authority/ beneficiary of the
No. of the property or property or creation CSR amount registered owner
asset(s) (including asset(s) spent
complete address (in J million)
and location of the
property)
1 2 3 4 5 6
CSR Name Registered
Registration Address
Number, if
applicable
1 Canon Printer 110042 23.09.2022 0.19 CSR00000622 Apollo Tyres BG-218,
(BG-218, Foundation Sanjay Gandhi
Sanjay Gandhi Transport Nagar,
Transport Nagar, Delhi-110042
Delhi-110042)
2 General WAC 1.5 TN 110042 04.03.2023 0.04 CSR00000622 Apollo Tyres BG-218,
AXGB18BAWA Foundation Sanjay Gandhi
Transport Nagar,
(BG-218,
Delhi-110042
Sanjay Gandhi
Transport Nagar,
Delhi-110042)
3 General WAC 1.5 TN 110042 04.03.2023 0.04 CSR00000622 Apollo Tyres BG-218,
AXGB18BAWA Foundation Sanjay Gandhi
(BG-218, Transport Nagar,
Delhi-110042
Sanjay Gandhi
Transport Nagar,
Delhi-110042)
4 General WAC 1 TN 110042 04.03.2023 0.03 CSR00000622 Apollo Tyres BG-218,
AMGB12BAWA 5S Foundation Sanjay Gandhi
(BG-218, Transport Nagar,
Delhi-110042
Sanjay Gandhi
Transport Nagar,
Delhi-110042)

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Sl. Short Particulars Pincode of the Date of Amount of Details of entity/ authority/ beneficiary of the
No. of the property or property or creation CSR amount registered owner
asset(s) (including asset(s) spent
complete address (in J million)
and location of the
property)
1 2 3 4 5 6
CSR Name Registered
Registration Address
Number, if
applicable
5 General SAC 110042 04.03.2023 0.06 CSR00000622 Apollo Tyres BG-218,
ASGG18CGTB INV Foundation Sanjay Gandhi
Transport Nagar,
(BG-218,
Delhi-110042
Sanjay Gandhi
Transport Nagar,
Delhi-110042)
6 General SAC 2 TN 110042 04.03.2023 0.07 CSR00000622 Apollo Tyres BG-218,
ASGG24CGTB INV Foundation Sanjay Gandhi
(BG-218, Transport Nagar,
Delhi-110042
Sanjay Gandhi
Transport Nagar,
Delhi-110042)

All the fields should be captured as appearing in the revenue record, flat no, house no, municipal office/municipal
corporation/ gram panchayat are to be specified and also the area of the immovable property as well as boundaries)

9. Specify the reason(s), if the company has failed to spend two percent of the average net profit as per sub-section (5) of
Section 135:

Not Applicable

For and on behalf of the Board of Directors

ONKAR KANWAR NEERAJ KANWAR

Place: Amsterdam Chairman of CSR Committee Vice Chairman & Managing Director
Date: May 9, 2023 DIN: 00058921 DIN:00058951

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Annexure III

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

Section A: General Disclosures

Details of the listed entity:

S.
Question Response
No.
1. Corporate Identity Number (CIN) of the Entity L25111KL1972PLC002449
2. Name of the Listed Entity Apollo Tyres Ltd
3. Year of Incorporation 1972
4. Registered Office Address 3rd Floor, Areekal Mansion, Panampilly Nagar, Kochi-
682036 (Kerala)
5. Corporate Address No.7, Apollo House, Institutional Area, Sector-32,
Gurugram-122001
6. E-mail [email protected]
7. Telephone 0124 2721000
8. Website www.apollotyres.com
9. Financial Year for which report is being done 2022 – 23
10. Name of the Stock Exchange(s) where shares are listed National Stock Exchange of India Limited (NSE) and BSE
Limited (BSE)
11. Paid-up Capital (H) 635,100,946
12. Name and contact details (telephone, email) of the Ms. Seema Thapar
person who may be contacted in case of queries on the 0124 2721000
BRSR report [email protected]
13. Reporting Boundary (Standalone or Consolidated basis) Standalone Basis

Products and Services:

14. Details of business activities (accounting for 90% of the turnover):
S. Description of %Turnover of the
Description of Main Activity
No. Business Activity entity
1. Manufacturing Tyres, Tubes & Flaps 100%

15. Product/ Services sold by the entity (accounting for 90% of the entity’s turnover):
S. %of total turnover
Product/ Service NIC Code
No. contributed
1. Tyres, Tubes, and Flaps 22111 100

Operations:
16. Number of locations where plants and/or operations/ offices of the entity are situated:
Location Number of Plants Number of Offices Total
National 5 173 178
International 2 8 10

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17. Markets Served by the Entity:

a. Number of Locations:

Location Number
National (No. of States) Pan India
International (No. of Countries) 100+ countries served

b. What is the contribution of exports as a percentage of the total turnover of the entity?

Export is 15.25% as percentage of total turnover.

c. A Brief on types of customers?

OEMs, Business Partners, Tyre retailers and distributors, fleets, and end consumers.

Employees:
18. Details as at the end of Financial Year 2022- 23
a. Employees and Workers

Male Female
S.
Particulars Total (A) Percentage Percentage
No. Number (B) Number (C)
(B/A) (C/A)
Employees (including differently abled)
1. Permanent Employees 3,040 2,965 98% 75 2%
2. Other than Permanent 91 72 79% 19 21%
Employees
3. Total Employees (1+2) 3,131 3,037 97% 94 3%
Workers (including differently abled)
4. Permanent Workers 4,795 4,789 99.9% 6 0.1%
5. Other than Permanent 8,164 7,878 96.5% 286 3.5%
Workers
6. Total Workers (4+5) 12,959 12,667 97.7% 292 2.3%

b. Differently abled Employees and Workers

Male Female
S.
Particulars Total (A) Percentage Percentage
No. Number (B) Number (C)
(B/A) (C/A)
Differently Abled Employees
1. Permanent Employees 6 6 100% 0 0%
2. Other than Permanent 0 0 0 0 0%
Employees
3. Total Employees (1+2) 6 6 100% 0 0%
Differently Abled Workers
4. Permanent Workers 10 10 100% 0 0%
5. Other than Permanent 0 0 0 0 0%
Workers
6. Total Workers (4+5) 10 10 100% 0 0%

19. Participation/ Inclusion/ Representation of Women

Total (A) Number of Female (B) Percentage (B/A)
Board of Directors 15 2 13%
Key Management Personnel 4 1 25%

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20. Turnover rate for permanent employees and workers:

FY 2022- 23 FY 2021- 22 FY 2020- 21

Male Female Total Male Female Total Male Female Total
Permanent Employees 11% 30% 12% 9% 18% 10% 4% 12% 5%
Permanent Workers 6% 20% 6% 8% 0% 8% 3% 50% 3%

Holding, Subsidiary and Associate Companies (including joint ventures):

21. (a). Names of holding/ subsidiary/ associate companies/ joint ventures
Indicate whether Does the entity
% of
holding/ indicated at Column
shares
S. Name of the holding/ subsidiary/ associate subsidiary/ A, participate in the
held by
No. Company/ joint venture (A) associate Business Responsibility
listed
Company/ joint initiatives of the entity
entity
venture (Yes/ No)
1. Apollo Tyres Centre of Excellence Limited Subsidiary 100% No
2. Apollo (South Africa) Holdings (Pty) Ltd Subsidiary 100% No
3. Apollo Tyres Africa (Pty) Ltd Subsidiary 100% No
4. Apollo Tyres (Thailand) Limited Subsidiary 100% No
5. Apollo Tyres (Middle East) FZE Subsidiary 100% No
6. Apollo Tyres Holdings (Singapore) Pte Ltd Subsidiary 100% No
7. Apollo Tyres (Malaysia) SDN BHD Subsidiary 100% No
8. Apollo Tyres Cooperatief U.A. Subsidiary 100% No
9. Apollo Tyres (Greenfield) B.V Subsidiary 100% No
10. Apollo Tyres Global R&D B.V Subsidiary 100% No
11. Apollo Tyres (Europe) B.V. (Formerly Apollo Tyres Subsidiary 100% No
B.V.)
12. Apollo Tyres (NL) B.V. (Formerly Apollo Vredestein Subsidiary 100% No
B.V.)
13. Vredestein Consulting B.V. Subsidiary 100% No
14. Finlo B.V. Subsidiary 100% No
15. Apollo Tyres (UK) Holdings Ltd (Formerly Apollo Subsidiary 100% No
Tyres (UK) Pvt Ltd) (ATUK)
16. Apollo Tyres (London) Pvt Ltd Subsidiary 100% No
17. Apollo Tyres (UK) Sales Ltd (Formerly Apollo Subsidiary 100% No
Vredestein (UK) Limited)
18. Saturn F1 Pvt Ltd Subsidiary 100% No
19. Apollo Tyres (R&D) GmbH (Formerly Apollo Tyres Subsidiary 100% No
(Germany) GmbH)
20. Apollo Tyres (Germany) GmbH (Formerly Apollo Subsidiary 100% No
Vredestein GmbH)
21. Reifencom GmbH, Hannover Subsidiary 100% No
22. Reifencom Tyre (Qingdao) Co., Ltd. Subsidiary 100% No
23. Apollo Tyres AG Subsidiary 100% No
24. Apollo Tyres (Schweiz) AG (Formerly Apollo Subsidiary 100% No
Vredestein Schweiz AG)
25. Apollo Tyres Do (Brasil) Ltda Subsidiary 100% No
26. Apollo Tyres (Hungary) Kft. Subsidiary 100% No
27. Apollo Tyres (Hungary) Sales Kft (Formerly Apollo Subsidiary 100% No
Vredestein Kft)
28. Apollo Tyres (Nordic) A.B. (Formerly Apollo Subsidiary 100% No
Vredestein Nordic A.B.)
29. Apollo Tyres (France) SAS (Formerly Apollo Subsidiary 100% No
Vredestein France SAS)

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Indicate whether Does the entity

% of
holding/ indicated at Column
shares
S. Name of the holding/ subsidiary/ associate subsidiary/ A, participate in the
held by
No. Company/ joint venture (A) associate Business Responsibility
listed
Company/ joint initiatives of the entity
entity
venture (Yes/ No)
30. Apollo Tyres (Belux) SA (Formerly Apollo Subsidiary 100% No
Vredestein Belux)
31. Apollo Tyres (Austria) Gesellschaft m.b.H. Subsidiary 100% No
(Formerly Apollo Vredestein Gesellschaft m.b.H.)
32. Apollo Tyres Iberica S.A. (Formerly Apollo Subsidiary 100% No
Vredestein Iberica SAU)
33. Apollo Tires (US) Inc. (Formerly Apollo Vredestein Subsidiary 100% No
Tires Inc.)
34. Apollo Tyres (Polska) Sp. Z.o.o. (Formerly Apollo Subsidiary 100% No
Vredestein Opony Polska Sp. Z.o.o.)
35. Pan Aridus LLC Joint Venture 50% No
36. KT Telematic Solutions Private Limited Associate 25% No
37. CSE Deccan Solar Private Limited Associate 27.27% No

CSR Details:
22.
Location Number
(i). Whether CSR is applicable as per Section 135 of Companies Act, 2013 (Yes/No) Yes
(ii). Turnover (in H) 168,899,090,000
(iii). Net Worth (in H) 98,999,030,000

Transparency and Disclosures Compliances:

23. Complaints/ Grievances on any of the Principles (1-9) under the National Guidelines on Responsible
Business Conduct:

Grievance Current Financial Year 2022- 23 Previous Financial Year 2021- 22

Redressal Number of Number of
Mechanism in Number of complaints Number of complaints
Stakeholder Group
place (Y/N) complaints pending Remarks complaints pending Remarks
(Provide web- filed at close of filed at close of
link of policy) year year
Investors (other than Yes 0 0 We have 0 0 We have
shareholders) considered considered
the the
Debenture Debenture
Holders Holders
(NCDs) (NCDs)
Shareholders Yes 16 0 These are 15 0 Based on
based on the BRR for
the fillings FY 2022
made with
the Stock
Exchange

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Grievance Current Financial Year 2022- 23 Previous Financial Year 2021- 22

Redressal Number of Number of
Mechanism in Number of complaints Number of complaints
Stakeholder Group
place (Y/N) complaints pending Remarks complaints pending Remarks
(Provide web- filed at close of filed at close of
link of policy) year year
Employees and Yes 0 0 No 0 0 No
Workers (including (Apollo COC, complaints complaints
contract laboures) HR Policy, registered registered
Human Rights
Policy, &
Individual
Forums in
Plants)
Customers Yes 422 1 Only 383 0 All
1800-212-7070 service complaints
- Toll Free dealers are resolved
Number available
Consumers Yes 614,061 710 Consumer 571,504 0 Consumer
1800-212-7070 complaints complaints
- Toll Free
Number
Contractors Yes 0 0 No 0 0 No
complaints complaints
Communities Yes 0 0 No 0 0 No
complaints complaints
registered registered
Implementing Yes 0 0 No 0 0 No
Partner (NGOs) complaints complaints
registered registered

24. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social
matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or
mitigate the risk along-with its financial implications, as per the following format:

Financial implications
In case of Risk,
Indicate of the risk or
S. Material Issue Rationale for identifying the approach
whether Risk or opportunity (Indicate
No. Identified risk/ opportunity to adapt or
Opportunity positive or negative
mitigate
implications)
1 Market Risk • Ever-changing customer To evaluate Negative Impact
behavior. financial
• Increased indirect risks and
(operating) costs. opportunities,
2 Emerging Risk • Ongoing and emerging Apollo Negative Impact
Regulation Climate change regulation Tyres risk
landscape. management
• Enhanced climate reporting approach
and emissions obligations. was aligned
with the
business risk
management
framework.

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Financial implications
In case of Risk,
Indicate of the risk or
S. Material Issue Rationale for identifying the approach
whether Risk or opportunity (Indicate
No. Identified risk/ opportunity to adapt or
Opportunity positive or negative
mitigate
implications)
3 Extreme Risk • Climate change is causing Negative Impact
Weather extreme heat waves
Conditions leading to increase in both
frequency and intensity
of extreme events like
drought.
4 Markets Opportunity • Scarcity of Resources- Positive Impact
sustainable materials,
Natural Rubber, new and
recycled materials.
5 Energy Opportunity • Adoption of lower-emission Positive Impact
sources of energy.

Section B: Management and Process Disclosures

This section is aimed at helping businesses demonstrate the structures, policies, and processes out in place towards adopting
the NGRBC Principles and Core Elements.

Disclosure
P1 P2 P3 P4 P5 P6 P7 P8 P9
Questions
Ethics and Sustainable Employee Stakeholder Human Environment Public Community Consumer
Principle Name
Transparency Business Wellbeing Engagement Rights Conservation Advocacy Development Welfare

Policy and Management Processes

1. a. Whether your Yes Yes Yes Yes Yes Yes Yes Yes Yes
entity’s policy/
policies cover each
principle and its
core elements of the
NGRBCs. (Yes/No)
b. Has the policy been Yes Yes Yes Yes Yes Yes Yes Yes Yes
approved by the
Board? (Yes/No)
c. Web Link of the https://corporate.apollotyres.com/investors/corporate-governance/
policies, if available
2. Whether the entity has Yes Yes Yes Yes Yes Yes Yes Yes Yes
translated the policy into
procedures? (Yes/No)
3. Do the enlisted policies Yes Yes Yes Yes Yes Yes Yes Yes Yes
extend to your value
chain partners? (Yes/No)
4. Name of the national Yes Yes Yes Yes Yes Yes Yes Yes Yes
and international codes/
certifications/labels/
standards (e.g., Forest
Stewardship Council,
Fairtrade, Rainforest
Alliance, Trustea)
standards (e.g., SA
8000, OHSAS, ISO, BIS)
adopted by your entity
and mapped to each
principle.1

1
The policies follow applicable national/international laws, rules, regulations, guidelines, and standards. The policies are in conformance to the spirit of
international standards like ISO 9001, ISO 14001, and ISO 45001.

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Disclosure
P1 P2 P3 P4 P5 P6 P7 P8 P9
Questions
Ethics and Sustainable Employee Stakeholder Human Environment Public Community Consumer
Principle Name
Transparency Business Wellbeing Engagement Rights Conservation Advocacy Development Welfare

5. Specific commitments, In line with Apollo Tyres’ Vision & Value of creating an inclusive culture, building a responsible and sustainable business that
goals, and targets set bybenefits partners, community, and society; the Company has been working on developing climate adaptive operations and
the entity with defined increasing its diversity and inclusion amongst its workforces. To realize the Company’s ambition, following commitments and
timelines, if any. targets have been adopted:
6. Performance of the • Ambition to become Carbon Neutral by 2050
entity against the • Reduce Scope 1 emission intensity by 25% in FY26 compared to FY20
specific commitments, • Reduce Scope 2 emission intensity by 35% in FY26 compared to FY20
goals, and targets along • Source 30% of total power usage from Renewable Sources by FY26
with reasons in case the • Improve water withdrawal intensity by 25% in FY26 compared to FY19
same are not met. • Increase usage of sustainable raw material to 40% by 2030
• Improve its diversity and inclusion (D&I) to 12% globally by 2026
• Committed to sustainable development of its communities by reaching out to over 13.5 million beneficiaries by 2026
through CSR initiatives.
Apollo Tyres has made significant and sustainable progress in its Environmental, Social, and Governance (ESG) commitments
by steadily investing in energy-saving initiatives, renewable energy capacity, R&D, innovation, and manufacturing of
sustainable materials (including conducting life cycle assessment of products), and community development initiatives. All
sites are ISO 9001, 14001, and 45001 certified and Apollo Tyres Ltd also adopted ISO 26000:2010, an International Framework
on Social Responsibility, under which all the adopted ESG procedures are independently assured by a third-party. In India,
Apollo Tyres Ltd, is the first Company in the automotive sector to adopt ISO 20400 framework on Social responsibility for its
supply chain.
Governance, leadership, and oversight
7. Statement by the director responsible for the business responsibility report, highlighting ESG related challenges, targets, and achievements (listed
entity has flexibility regarding the placement of this disclosure)

Apollo Tyres Ltd continuously works towards achieving sustainability across its operations and value chain. Our sustainability governance framework
provides for both identification of key material issues, risks and opportunities of the organisation and strategies to address them. Our efforts are to
minimize the environmental and social impacts of our business activities while creating value for our stakeholders. Further progress on sustainability is
shared in the ESG Report FY23.
8. Details of the highest Name: Sunam Sarkar
authority responsible Designation: President & Chief Business officer
for implementation and Email: [email protected]
oversight of the Business Telephone No: +65 6804 6262
Responsibility policy (ies) Address: Apollo Tyres Holdings (Singapore) Pte Ltd
9 Temasek Boulevard #42-01 Suntec Tower 2 Singapore 038989
9. Does the entity have Yes, Business Responsibility and Sustainability Committee.
a specified Committee
of the Board/ Director
responsible for decision
making on sustainability
related issues? (Yes/No).
If “Yes”, provide details

10. Details of Review of NGRBCs by the Company:

Indicate whether review was

Frequency (Annually/ Half yearly/
undertaken by Director/ Committee of
Subject for Review Quarterly/ Any Other- please specify)
the Board/ Any other Committee
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance against above
policies and follow up action The Business Responsibility & Sustainability Report (BRSR) (erstwhile BRR) is
Compliance with statutory reviewed by the Business Responsibility and Sustainability Committee on an Annual
requirements of relevance to Basis. The same is placed before the Board annually as it forms an integral part of
the principles, and rectification the Company’s Annual Report.
of any non-compliances

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11. Has the entity carried out independent assessment/ evaluation of the working of its policies by
an external agency? (Yes/No).
If “Yes”, provide name of the agency.

P1 P2 P3 P4 P5 P6 P7 P8 P9
• Apollo Tyres had considered ‘External Consultation’ during formulation of Governance framework as per
Business Responsibility Report (BRR).
• Apollo Tyres has adopted ISO 26000:2010, an International Standard on Social Responsibility, which
encompasses 6 core subjects namely, Environment, Community Involvement & Development, Fair Operating
Practices, Customer Issues, Labour Practices, and Human Rights. All the adopted procedures across the 6
core subjects are also independently assured by a Third-Party.

12. If Answer to Question (1) Above is “NO”, i.e., not all Principles are covered by a Policy, reasons to
be stated:
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The entity does not consider the Principles NA NA NA NA NA NA NA NA NA
material to its business (Yes/No)
The entity is not at a stage where it is in a NA NA NA NA NA NA NA NA NA
position to formulate and implement the
policies on specified principles (Yes/No)
The entity does not have the financial or human NA NA NA NA NA NA NA NA NA
and technical resources available for the task
(Yes/No)
It is planned to be done in the next financial NA NA NA NA NA NA NA NA NA
year (Yes/No)
Any Other Reason (please specify) NA NA NA NA NA NA NA NA NA

Note: NA- Not Applicable

Section C: Principle Wise Performance Disclosure

Principle 1 Businesses should conduct and govern themselves with integrity, and in a manner
that is Ethical, Transparent, and Accountable.

Essential Indicators

1. Percentage coverage by training and awareness programmes on any of the Principles during the
financial year:
%age of persons
Total number
in respective
of training and
Segment Topics/ Principles covered under training and its impact category covered
awareness
by the awareness
programs held
programmes
Board of 11 Session on: 100%
Directors • Sustainability
• Sustainability Roadmap
• Sustainability Pillars
• Corporate Social Responsibility (CSR) projects empowering
women
• HR processes related to Gender Diversity

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%age of persons
Total number
in respective
of training and
Segment Topics/ Principles covered under training and its impact category covered
awareness
by the awareness
programs held
programmes
• Cyber Security
• Regulatory Updates
• Digitalisation
• Technology and Innovation
• People
• Brand
Key 11 Session on: 100%
Managerial • Sustainability
Personnel • Sustainability Roadmap
(KMP) • Sustainability Pillars
• Corporate Social Responsibility (CSR) projects empowering
women
• HR processes related to Gender Diversity
• Cyber Security
• Regulatory Updates
• Digitalisation
• Technology and Innovation
• People
• Brand
Employees 646 • Compliance Programs, including Code of Conduct and POSH 92%
other than trainings
BoD and • Functional Training Programs
KMP • Onboarding and Leadership Journey Programs
• Sales Program and Technical product base programs
• Behavioural training programs and communication skills
• ATQM and Plant specific technical trainings
• Health and Safety Programs
• Waste Management and Process trainings
Workers Over 1,000 • Compliance Programs, including Code of Conduct and POSH 80%
trainings
• Basic Safety awareness trainings and Fire Training/ Mock
drills
• Functional programs on Workflow, and Quality awareness
trainings
• EMS, BBS, Production Safety, 5's, QC Tools, and Incoming &
Outgoing Material Quality trainings
• Machine Operation and Work Instruction trainings
• Customer Requirement, ATQM Training, 7 QC Tools, Core
Values, Product Safety, and IMS trainings

2. Details of fines/ penalties/ punishment/ award/ compounding fees/ settlement amount paid in
proceedings (by the entity or by directors/ KMPs) with regulators/ law enforcement agencies/
judicial institutions, in the financial year, in the following format:
(Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing
Obligations and Disclosure Obligations) Regulations, 2015 and as discussed on the entity’s website)

No monetary and non-monetary fine has been paid in the current financial year 2022- 23.

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Name of the Regulatory/ Has an appeal

NGRBC Amount Brief of
enforcement agencies/ been preferred?
Principle (in J) Case
judicial institutions (yes/ No)
Monetary
Penalty/ Fine
Settlement Nil
Compounding Fee
Non-Monetary
Imprisonment
Nil
Punishment

3. Of the instances disclosed in Question 2, above detail of the Appeal/ Revision preferred in cases
where monetary or non-monetary action has been appealed.

Name of the regulatory/ enforcement

Case Details
agencies/ judicial institutions
The Competition Commission of India (CCI) issued an order on February 2, Competition Commission of India (CCI)
2022 mentioning that it has held five tyre manufacturers and Automotive
Tyre Manufactures Association (ATMA) guilty of contravention of the
provisions of Section 3 of the Competition Act, 2002 and imposed a
penalty of H 425.53 Crores on the Company.

The Company filed an appeal against the aforesaid order before the
National Company Law Appellate Tribunal, New Delhi ("NCLAT"). The NCLAT
through its judgement dated December 1, 2022 disposed off the appeals by
remanding back the case to CCI for review. CCI has filed an appeal in the
supreme court against the Order passed by the NCLAT. Hearing to consider
admission of appeal is likely to come after September 2023.

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and
if available, provide web-link to the policy.
Yes. Refer to Code of Conduct Policy.

https://corporate.apollotyres.com/investors/corporate-governance/

5. Number of Directors/ KMPs/ employees/ workers against whom disciplinary action was taken by
any law enforcement agency for the charges of bribery/ corruption:

Current Financial Previous Financial

Year 2022- 23 Year 2021- 22
Directors 0 0
Key Managerial Personnel (KMPs) 0 0
Employees 0 0
Workers 0 0

6. Details of complaints with regard to conflict of interest:

Current Financial Year 2022- 23 Previous Financial Year 2021- 22

Number Remark Number Remark
Number of complaints received in relation to 0 - 0 -
issues of Conflict of Interest of the Directors
Number of complaints received in relation to 0 - 0 -
issues of Conflict of Interest of the KMPs

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7. Provide details of any corrective action taken or underway on issues related to fines/ penalties/
action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption
and conflicts of interest.
We had appealed against the judgement of CCI in NCLAT, which has remanded back the case to CCI for fresh adjudication.
CCI has filed an appeal in the supreme court against the Order passed by the NCLAT. Hearing to consider admission of
appeal is likely to come after September 2023.

Leadership Indicators

1. Awareness programmes conducted for the value chain partners on any of the Principles during
the financial year:
%age of value chain partners
Total number
covered (by value of business done
of awareness Topics/ Principles covered under the training
with such partners) under the
programmes held
awareness programmes
1 Sustainability Workshop for all Apollo Supplier Partners 100%
held in July 2022, covering the following topics:

a) Apollo Sustainability Journey

b) Sustainable Material development

c) Awareness on ISO20400:2017 Sustainable Procurement

Guidance

d) Guidelines for Apollo RM Supply Chain

e) Apollo Tyres Sustainable Procurement Policy (ATSPP)

f) Apollo Sustainable Natural Rubber Policy (ASNRP)

2 Apollo Sustainable Natural Rubber Workshop for all 100%
Apollo NR Supplier Partners: conducted 2 workshops in
January 2022 to enlighten partners about our requirements
around Business integrity, ethics, transparency, and
accountability for the upstream natural rubber supply
chain as per Apollo Sustainable Natural Rubber Policy,
which is developed around Global Platform for Sustainable
Natural Rubber (GPSNR) Policy framework.

2. Does the entity have processes in place to avoid/ manage conflict of interests involving members
of the Board? (Yes/No).
If “Yes”, provide details of the same.
Yes. Apollo Tyres has processes in place to avoid/ manage conflict of interests involving members of Board and Company’s
Code of Conduct for Directors and Senior Management covers guidelines related to Conflict of Interest. It is applicable to
all Board of Directors and Senior Management and provides guidelines for avoiding any conflict of interest, both actual
or apparent, and the mechanism to report any such situations that may give rise to a potential conflict. The Company’s
Policy on Related Party Transactions intends to ensure that proper reporting, approval, and disclosure processes are in
place for all transactions between the Company and related parties. Further in accordance with the provisions of Section
184 of the Companies Act, 2013 read with the relevant rules, every Director and Key Managerial Personnel (KMP) at the
first meeting of the Board in which he/ she participates as a Director and thereafter, at the first meeting of the Board
in every financial year or whenever there is any change in the disclosures already made, then at the first Board meeting
held after such change, discloses his/her concern or interest in FORM MBP-1 in any Company or companies or bodies
corporate, firms, or other association of individuals which shall include the shareholding. If the Director is interested in
any Agenda item, the Director does not participate/ vote in the said item to avoid conflict of interest.

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Principle 2 Businesses should provide goods and services in a manner that is sustainable and safe

Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to

improve environmental and social impacts of product and processes to total R&D and capex
investments made by the entity, respectively.

Current Previous
Financial Financial Previous Financial Year 2021- 22
Year 2022- 23 Year 2021- 22
R&D Opex 8.10% 5.99% Reduce: Low rolling resistance and Lightweight of tyres
(Excluding Manpower) significantly reduced CO2 emissions which positively
R&D Opex 23.37% 20.71% impacted the scope 3 emissions in the usage phase.
(Including Manpower) Recycle: Increasing the Utilisation of recycled materials in tyres
R&D Capex 79.08% 26.02% helped in achieving a circular economy in the tire industry.
Reuse: Extending the usage lifespan of tyres through
enhanced durability and re-treading, reduced the
environmental impact caused by discarded tyres.
Replace: Using sustainable raw materials in place of
conventional fossil-based materials in tyre compounds
improved the carbon footprint.
Redesign: Optimizing raw materials and dimensions of
components enhanced the strength-to-weight ratio &
conserved the raw materials used in tyres.

2. a. Does the entity have procedures in place for 3. Describe the processes in place to safely
sustainable sourcing? (Yes/No). reclaim your products for reusing, recycling,
b. If “Yes”, what percentage of inputs were sourced
and disposing at the end of life for (a)
sustainability? Plastics (including packaging), (b) E-waste,
(c) Hazardous waste, and (d) Other waste.
Yes, At Apollo Tyres,
Apollo Tyres, follows environmental safe industry
• We have defined our ‘Sustainable Procurement’ practices ( Reuse and Recycle ), all the empty plastic
Vision, Policy, and Guiding Principles. boxes and bags are returned to vendor and other non-
• The guidelines for the Apollo Suppliers are laid returnable plastic materials are sold to authorized scrap
down and deployed through the Apollo Tyres dealer to reuse/recycle. We have agreement in place
Sustainable Procurement Policy (ATSPP) for with authorized recyclers for safe disposal of hazardous
raw materials other than Natural Rubber and waste and E-waste to authorized TSDF and recyclers,
Apollo Sustainable Natural Rubber Policy respectively. As a process, all the waste generated at
(ASNRP) for Natural Rubber Supply Chain. sites are disposed in accordance with the State Pollution
Control Board Guidelines.
• Social, Ethical, and Environmental key
performance indicators (KPIs) are integrated 4. Whether Extended Producer Responsibility
into the supplier selection process in line with (EPR) is applicable to the entity’s activities
the guidance on Sustainable Procurement as (Yes/No).
per ISO20400:2017 Standard.
• If “Yes”, whether the waste collection plan is in line
100% of new supplier screening includes these factors
with the Extended Producer Responsibility (EPR)
in the assessment system and selection beginning
plan submitted to Pollution Control Board?
from April 2022 onwards. At Apollo Tyres, we monitor
data on sourcing of material from ISO 14001 and ISO • If “Not”, provide steps taken to address the same.
45001 certified partners. In the current FY 2022- 23,
Yes, Extended Producer Responsibility (EPR) is applicable
79% of total raw material (by value) was sourced
to Apollo Tyres Ltd, and Company plans to buy the EPR
from ISO certified suppliers, globally and 61% of
certificates from registered Recyclers through the Central
total raw material (by value) was from ISO certified
Pollution Control Board (CPCB), as part of its compliance
suppliers for Apollo operations in India.
commitment.

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Leadership Indicators

1. Has the entity conducted Life Cycle Perspective/ Assessment (LCA) for any of its products (for
manufacturing industries) or for its services (for service industry)? If “Yes”, provide details in the
following format:
Boundary for Whether
Name of % of Total which the Life conducted by Results communicated in
NIC Code product/ Turnover cycle perspective/ independent public domain (Yes/No)
service contributed assessment was external agency If “Yes”, provide web-link
conducted (Yes/No)
22111 Endurace LD 6.5% Cradle to Grave Yes No
22111 Amazer 4G 0.56% Cradle to Grave Yes No
22111 Alnac 4G 0.85% Cradle to Grave Yes No

2. If there are any significant social or environmental concerns and/or risks arising from production
or disposal of your products/ services, as identified in the Life Cycle Perspective/ Assessments
(LCA) or through any other means, briefly describe the same along with action-taken to mitigate
the same.

Name of Product/ Description of the risk/

Action Taken
Service concern
Amazer 4G The major global warming Progressive reduction of tyre weight in PCR up to ~8% by redesigning
potential contribution in the product, which directly corresponds to the reduction in the
the value chain is from the consumption of hydrocarbon, resulting in reduced carbon footprint
use phase. per tyre.
Alnac 4G The major global warming During the fiscal FY 2022, the rolling resistance of the PCR was
potential contribution in reduced from 7 Kg/T to 6.3 Kg/T translating into reduction of rolling
the value chain is from the loss and reduced fuel consumption, without compromising any
use phase. other performance.
Endurace LD The major global warming The Company uses efficient techniques for re-treading truck
potential contribution in tyres to provide extended life cycle of the tyre body material to
the value chain is from the 2-3 times, thus avoiding the need for frequent replacements. Re-
use phase. treading is also a green process as it extends the usage life of the
tyre significantly. Improvement of wear life for all tyres ensures
improved re-use of the non-consumable part of tyres to a longer
period.

3. Percentage of recycled or reused input material to total material (by value) used in production
(for manufacturing industry) or providing services (for service industry).

Recycled or re-used input material to

total material
Indicate input material
Current Financial Previous Financial
Year 2022- 23 Year 2021-22
Reclaim Rubber 0.23% 0.20%
Crumb Rubber 0.10% 0.10%
Chlorobutyl Reclaim 0.11% 0.09%

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Principle 3 Businesses should respect and promote the well-being of all employees, including
those in their value chains

Essential Indicators

1. a. Details of measures for the well-being of Employees:

Health Accident Maternity Paternity Day Care

Total Insurance Insurance Benefits Benefits Facilities
Category
(A) Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent Employees
Male 2,965 2,965 100% 2,965 100% - - 2,965 100% 2,965 100%
Female 75 75 100% 75 100% 75 100% - - 75 100%
Total 3,040 3,040 100% 3,040 100% 75 2% 2,965 98% 3,040 100%
Other than Permanent Employees
Male 72 72 100% 72 100% - - 72 100% 72 100%
Female 19 19 100% 19 100% 19 100% - - 19 100%
Total 91 91 100% 91 100% 19 21% 72 79% 91 100%

1. b. Details of measures for the well-being of Workers:

Health Accident Maternity Paternity Day Care

Total Insurance Insurance Benefits Benefits Facilities
Category
(A) Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent Workers
Male 4,789 4,789 100% 4,789 100% - - 4,789 100% 4,789 100%
Female 6 6 100% 6 100% 6 100% - - 6 100%
Total 4,795 4,795 100% 4,795 100% 6 0.1% 4,789 99% 4,795 100%
Other than Permanent Workers
Male 7,878 7,878 100% 7,878 100% - - - - - -
Female 286 286 100% 286 100% 286 100% - - - -
Total 8,164 8,164 100% 8,164 100% 286 4% - - - -

2. Details of retirement benefits, for Current FY 2022-23 and Previous FY 2021-22

Current Financial Year 2022- 23 Previous Financial Year 2021- 22

No. of No. of No. of No. of Deducted and
Deducted and
employees workers employees workers Deposited
Benefits Deposited with
covered as covered as covered as covered as with the
the authority
% of total % of total % of total % of total authority
(Yes/ No/ NA)
employees workers employees workers (Yes/ No/ NA)
PF 100% 100% Yes 100% 100% Yes
Gratuity 100% 100% Yes 100% 100% Yes
ESI 1% 7% Yes 2% 5% Yes
Others- WC 67% 100% Yes 65% 100% Yes

WC: Workmen Compensation

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3. Accessibility of Workplaces
Are the premises/ offices of the entity accessible to differently abled employees and workers, as per the requirements
of the Rights of Persons with Disabilities Act, 2016?
If “Not”, then whether any steps are being taken by the entity in this regard.

At Apollo Tyres, we value diversity of people with whom we work and commit to equal opportunity and intolerance
of discrimination and harassment. Apollo Tyres ‘Equal Opportunity Policy’ is in line with the statutory compliance as
stipulated under "The Rights of Persons with Disabilities Act, 2016 and Rules, 2017". The Company ensures to provide
support and facilities for the wellbeing of its employees, including those with special needs to effectively discharge their
duties in the Company.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities
Act, 2016? If so, please provide the web-link of the policy.
Apollo Tyres Ltd’s Code of Conduct for Employees states “equal opportunity is a matter of fairness, respect, and dignity”.
The Company always provides and maintains equal opportunities during recruitment as well as course of employment,
irrespective of caste, creed, gender, race, religion, disability, or sexual orientation. There is ‘Equal Opportunity Policy’ in
place and accessible to all employees on ATL Intranet.

5. Return to work and Retention rates of permanent employees and workers that took parental leave.

Permanent Employees Permanent Workers

Gender Return to Work Return to Work
Retention Rate Retention Rate
Rate Rate
Male 100% 98.3% 100% 100%
Female 100% 100% 100% 100%
Total 100% 99.2% 100% 100%

6. Is there a mechanism available to receive and redress grievances for the following categories of
employees and workers? If “Yes”, give details of the mechanism in brief:

Permanent Workers Yes.

Other than Permanent Workers At Apollo Tyres Ltd, there is a well-established mechanism available for all cadres
Permanent Employees of employees and workers to raise and redress their grievances. The concerns can
Other than Permanent Employees be raised in the following manner, via
• Line Manager
• The HR Business Partner (HRBP) for business area/region
In addition, if somebody wants to report a concern maintaining confidentiality, he/
she can put that in writing to an exclusive email ID: [email protected]
Depending on the assessment of the raised concern, appropriate action is
taken.

7. Membership of employees and workers in association(s) or Unions recognized by the listed entity:

Current Financial Year 2022- 23 Previous Financial Year 2021- 22

No. of employees/ No. of employees/
Total Total
workers in workers in
employees/ employees/
respective respective
Category workers in Percentage workers in Percentage
category, who category, who
respective (%) (B/A) respective (%) (B/A)
are part of are part of
category category
Association(s) or Association(s) or
(A) (A)
Unions (B) Unions (B)
Total Permanent 3,040 0 0% 3,240 0 0%
Employees
- Male 2,965 0 0% 3,150 0 0%
- Female 75 0 0% 90 0 0%

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Current Financial Year 2022- 23 Previous Financial Year 2021- 22

No. of employees/ No. of employees/
Total Total
workers in workers in
employees/ employees/
respective respective
Category workers in Percentage workers in Percentage
category, who category, who
respective (%) (B/A) respective (%) (B/A)
are part of are part of
category category
Association(s) or Association(s) or
(A) (A)
Unions (B) Unions (B)
Total Permanent 4,795 4,527 94.4% 5,081 5,071 99.8%
Workers
- Male 4,789 4,521 94.4% 5,077 5,067 99.8%
- Female 6 6 100% 4 4 100%

8. (a). Details of training given to employees and workers on “Health and Safety Measures”

Current Financial Year 2022- 23 Previous Financial Year 2021- 22

Category Total Number Percentage Total Number Percentage
(A) (B) (%) (B/A) (C) (D) (%) (D/C)
Employees
Male 2,965 3,254 110% 3,150 2,676 85%
Female 75 93 124% 90 79 88%
Total 3,040 3,347 110% 3,240 2,755 85%
Workers
Male 12,667 12,667 100% 13,109 13,109 100%
Female 292 292 100% 321 321 100%
Total 12,959 12,959 100% 13,430 13,430 100%
Note : Employee headcount is considered as on date as per the guideline; however, the training coverage is on cumulative basis i.e., all employees
trained during the reporting period (1st April 2022- 31st March 2023) as there is mandatory Induction safety training and job specific safety trainings
for its all employees and workers.

(b). Details of training given to employees and workers on “Skill Upgradation”

Current Financial Year 2022- 23 Previous Financial Year 2021- 22

Category Total Number Percentage Total Number Percentage
(A) (B) (%) (B/A) (C) (D) (%) (D/C)
Employees*
Male 2,965 2,728 92% 3,150 2,268 72%
Female 75 71 95% 90 68 75%
Total 3,040 2,799 92% 3,240 2,336 72%
Workers
Male 12,667 7,600 60% 13,109 6,555 50%
Female 292 190 65% 321 177 55%
Total 12,959 7,790 60% 13,430 6,732 50%
Note : Only includes permanent employees, as no separate programmes for contract employees

9. Details of Performance and Career Development reviews of employees and workers:

Current Financial Year 2022- 23 Previous Financial Year 2021- 22

Category Total Number Percentage Total Number Percentage
(A) (B) (%) (B/A) (C) (D) (%) (D/C)
Employees
Male 2,827 2,714 96% 3,072 2,918 95%
Female 67 67 100% 80 80 100%
Total 2,894 2,781 96% 3,152 2,998 95%

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Current Financial Year 2022- 23 Previous Financial Year 2021- 22

Category Total Number Percentage Total Number Percentage
(A) (B) (%) (B/A) (C) (D) (%) (D/C)
Workers
Male 4,789 4,789 100% 5,077 5,077 100%
Female 6 6 100% 4 4 100%
Total 4,795 4,795 100% 5,081 5,081 100%
Note: We follow the Performance Year (Company Performance or Employee Performance cycle) as 1st April to 31st March (FY). Employees who join post
1st Jan are not considered for the Performance review for that year. This number only includes the total number of people who are eligible for performance
reviews on our horizon platform plus Limda (Team Members).

10. Heath and Safety Management System: • And, carrying out Health and Safety Audits,
both internally and externally on a periodic
a. Whether an occupational health and safety basis.
management system has been implemented by
the entity? (Yes/No) c. Whether you have processes for workers to
report the work-related hazards and to remove
If “Yes”, then coverage of the system.
themselves from such risks? (Yes/No)
At Apollo Tyres Ltd, the Occupational Health and Yes.
Safety (OHS) Management System is implemented
as per ISO 45001 Standard and plants are certified • Hazard Identification and near-miss reporting
for ISO 45001 Standard process is available to enable workers to report
on work-related hazards including near-misses,
b. What are the processes used to identify work- unsafe working conditions, and unsafe acts.
related hazards and assess risks on a routine and
non-routine basis of the entity? • Behaviour Based Safety (BBS)/ Safety Interaction
(SI) program is available to enable workers to
The Company adopts various methods and
share work related hazards/ risks including unsafe
processes to identify work-related hazards and
working conditions and unsafe acts.
risks, which are illustrated below:
d. Do the employees/ workers of the entity have
• Hazard Identification and Risk Assessment
access to non-occupational medical and healthcare
(HIRA) Register covering routine and non-
services? (Yes/No)
routine activities carried across departments.
Yes
• Job Safety Analysis on non-routine activity and
development of method statement for non- Apollo Tyres provides non-occupational medical and
routine activities. health-care services to its employees and workers
such as occupational health centre, ambulance,
• GEMBA, Switch ON, Safety Interactions, duty Doctor, and nursing staff being available at
Hazard identification and Near Miss Reporting. plant premises.

11. Details of safety related incidents, in the following format:

Current Financial Previous Financial

Safety Incidents/ Number Category
Year 2022- 23 Year 2021- 22
Lost Time Injury Frequency Rate (LTIFR) (per one Employees 0.16 0.16
million-person hours worked) Workers 0.60 0.79
Total recordable work-related injuries Employees 2 2
Workers 15 16
Number of fatalities Employees 0 0
Workers 0 2
High consequence work-related injury or ill-health Employees 1 0
(excluding fatalities) Workers 0 1

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12. Describe the measures taken by the entity to Safety interaction programme (SI) and
ensure a safe and healthy workplace. implementing actions to close the observations.

In line with Company’s health and safety mission • Periodical safety audits reviewing workplace
“achieving well-being with always and absolute conditions and implementing remedial actions to
safety”, the Company continuously strives to improve further improve its safety measures, procedures,
its safety performance and drive health and safety and reporting systems.
awareness among employees and workers.
• Encouraging timely and effectively reporting and
To achieve it, Apollo Tyres Ltd has adopted various investigation of all incidents and implementing
measures to ensure a safe and healthy workplace for all corrective and preventive actions, within a
its stakeholders: stipulated period.

• Mandatory Induction safety training and job • Hazard identification and risk assessment of all
specific safety trainings is conducted for its all operations in the department
employees and workers, regularly.
• Safety committee members reviews along with
• Identification of hazards and proactive reporting other stakeholders on a weekly and monthly basis
of near misses and unsafe conditions is encouraged to act and conform with local safety regulations,
among all employees and workers through Hazard identify gaps, implement corrective actions, and
and Near Miss reporting program and implementing evaluate the key performance lagging and leading
actions to close the observations. indicators.

• Reinforcement of safe behaviours of employees • Finally, health and safety are an integral part
and workers and counselling the at-risk behaviours of the Risk Management projects which aids in
through Behaviour Based Safety (BBS) Program/ strengthening risk controls in the Company.

13. Number of complaints on the following made by employees and workers:

Current Financial Year 2022- 23 Previous Financial Year 2021- 22

Pending Pending
Benefits
Filed Resolution at Remark Filed Resolution at Remark
end of year end of year
Working Conditions 0 0 - 0 0 -
Health and Safety 0 0 - 0 0 -

14. Assessment for the Year (2022- 23):

% of plants and offices that were assessed
(by entity or statutory authorities or third party)
Health and Safety Practices 100%
Working Conditions 100%

15. Provide details of any corrective action b) Strengthening the safety training, standards, and
taken or underway to address safety-related SOPs with adequate health and safety instructions to
incidents (if any) and on significant risk/ ensure adequate risk awareness and safe behaviour.
concerns arising from assessment of health c) Strengthening the BBS programs with improved
and safety practices and working conditions. quality of safety interactions with workers.
Apollo Tyres Ltd, acknowledges that timely d) All safety related accidents are being investigated
identification of gaps and appropriate corrective action and learnings from investigation reports are shared
implementation is core for building a responsible and across Company for deployment of corrective
sustainable business. Following are few initiatives and actions to mitigate recurrence of such incidents.
actions taken to bridge the identified gaps during Effectiveness of corrective actions deployment
health and safety assessments: being checked during safety audits.
a) Improvement of additional engineering controls e) Roof lifeline system installations are in progress.
/ safety poka yokes (avoid unexpected surprises)
based on Risk Management Projects.

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Leadership Indicators ensuring that before settling the dues to the labor
contractors, that labor contractor has complied
with the deposit of statutory dues e.g., PF, ESI for
1. Does the entity extend any life insurance or his employees on a continuous basis before settling
the invoice payment.
compensatory package in the event of death
of (A). Employees; and (B). Workers (Yes/ For the RM Partners, further compliance with respect
No). Provide detail. to other labor issues are addressed through the Apollo
Supplier Code of Conduct deployment, and compliance
Yes. Apollo Tyres Ltd has Life Insurance cover for all the
in the RM Supply Chain:
employees and workers in tie-up with the Life Insurance
Corporation (LIC) of India. a) As a part of Apollo Tyres Sustainable Procurement
Policy - ATSPP Section III, Labour Practice - It is a
2. Provide the measures undertaken by the requirement and expectation that compensation
entity to ensure that statutory dues have is paid to workers shall comply with all applicable
been deducted and deposited by the value wage laws, including those relating to minimum
chain partners. wages, overtime hours, piece rates and other
elements of compensation, and provide legally
At Apollo Tyres Ltd, driving business ethics, transparency, mandated benefits stipulated under local or
and accountability is core and we expect the same from international laws.
our business partners. Some activities carried out by the
Company to ensure business partner compliance with b) As a part of Apollo Sustainable Natural Rubber
statutory and regulatory requirements are as follows: Policy - ASNRP Section 1: Labour and Human
Rights - Support Decent Living Wages and Benefits:
• GST dues in the Raw Material Billing to Apollo Compensation paid to workers shall comply with
Tyres: The GST paid to the Raw Material Value Chain all applicable wage laws, including those relating
Suppliers is being deposited with tax authorities of to minimum wages, overtime hours, piece rates
Govt of India. Once the Invoice data including GST and other elements of compensation, and provide
details is uploaded by Apollo suppliers in the GST legally mandated benefits stipulated under local or
portal, the GST details appear in Form 2A which international laws.
Apollo uses to take credit of the GST against the
FG Sales. c) As a part of the periodic Apollo audit assessment of
the suppliers - The aspect of fair working practices
• PF and ESI payment by Labour contractors - for worker and employees is being assessed during
Apollo's plant accounts commercial teams are the audit by Apollo audit team.

3. Provide the number of employees/ workers having suffered high consequence work-related
injury/ ill-health/ fatalities (as reported in Qs. 11 of Essential Indicators above), who have been/
are rehabilitated and placed in suitable employment or whose family members have been placed
in suitable employment:

No. of employees/ workers that are

Total Number of affected
rehabilitated or whose family member have
Indicate input material employees/ workers
been placed in suitable employment
FY 2022-23 FY 2021-22 FY 2022- 23 FY 2021- 22
Employees 1 0 0 0
Workers 0 3 0 1

4. Does the entity provide transition assistance programs to facilitate continued employability and
the management of career endings resulting from retirement or termination of employment?
(Yes/No)
Regular transition assistance program is provided with respect to wellness, financial planning, and counselling support. In
addition, based on business requirement, fixed term work contract is extended to retiring employees, whenever required.
Further, depending on business requirement, opportunity of being a business partner at Apollo Tyres Ltd is also extended
to such employees.

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5. Details on assessment of value chain partners (FY 2022-23):

% of value chain partners (by value of business done with

such partners) that were assessed
Health and Safety Practices 100%
Working Conditions 100%

6. Provide details of any corrective actions taken or underway to address significant risks/ concerns
arising from assessments of health and safety practices and working conditions of value chain
partners.
A special checkpoint is there in Apollo Tyres Ltd checklist for downgrading the supplier audit assessment score- check for
the incidence of fatal accident at supplier end. No significant risks were identified from assessment of health and safety
practices and working conditions of value chain partners during the assessment in FY 2022- 23.

Principle 4 Businesses should respect the interests of and be responsive to all its stakeholders

Essential Indicators

1. Describe the process for identifying key stakeholder groups of the entity.
Apollo Tyres Ltd, recognizes that the stakeholder is an essential part of business operation. Systematic identification of
its stakeholders, understanding their concerns and involving them in managing risks, are important aspects to ensure
sustainability of the business. The entire process is in accordance with Stakeholder Engagement Policy approved by
the Board. The Company has identified and prioritised its key stakeholder groups: Customers, Supply Chain Partners,
Community, NGOs, Government/Corporate partners, Investors etc.

2. List stakeholder groups identified as key for your entity and the frequency of engagement with
each stakeholder group.

Identified as
Vulnerable or
Stakeholder Channels of Frequency of Purpose and scope of engagement including key topics and
Marginalized
Group Communication engagement concerns raised during each engagement
Group (Yes/
No)
Customers- Yes a. One-to-one & Daily and Scope of Engagement & key topics, concerns raised during
OEM & one-to-group Monthly each engagement: The programme targets to provide health
Replacement communication care solution to its stakeholders in form of healthcare centres.
(Trucking b. Social media This is at their doorstep so that they can easily access it. To
community) engagement provide the healthcare services, the organisation has opened
c. Awareness 32 Healthcare Centres in transshipment hubs, spanning across
through IEC 19 Indian states. The programme engages with stakeholders
materials through various mediums.
like posters,
i) Awareness generation and filed visits: Apollo Tyres
pamphlets,
Foundation staff -Outreach workers and Peer Volunteers
hoardings, foe
(Dhaba owners, mechanics, barber etc. Local from the
behavior change
community, with whom truck drivers remains in constant
d. Mid-media
contact) conducts the filed visits on regular basis. One to
events (street-
one and one to group awareness sessions on healthcare
plays, game
issues are organised with truck drivers and allied
shows, etc.)
population. The staff also address the queries related
to availing healthcare facilities through Apollo Tyres
Healthcare Centres.

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Identified as
Vulnerable or
Stakeholder Channels of Frequency of Purpose and scope of engagement including key topics and
Marginalized
Group Communication engagement concerns raised during each engagement
Group (Yes/
No)
ii) Health Camps, OPDs and Mobile Medical Units: The
Company engages with the stakeholder to provide the
doorstep healthcare solutions. OPD service (through
32 healthcare centres), doctor consultation facility is
organised. Periodic health camps are also organised
at transshipment hubs for the maximum outreach.
Through Mobile Medical Units also we engage with the
trucking community. Mobile medical units provide doctor
consultation and other healthcare services at highways,
junctions and driver halt points. These services addresses
the healthcare issues faced by the stakeholder.

Other engagement includes sessions on health and safety

awareness.
Community Yes a. SHG Meetings Monthly and Scope of Engagement & key topics, concerns raised during
(Women and b. Village Quarterly each engagement: The livelihood Programme, Navya aims at
children from Development providing livelihood opportunities to the rural women at their
the community Committee doorsteps. Women are trained in farm based and non-farm
around our Meeting activities. Trained women are further linked with market and
manufacturing c. Livelihood financial institution for sale and fund support.
locations) and Income
The programme engages with women stakeholders through
Generation
various mediums.
Trainings
i) SHG Meetings are organized on monthly basis to bring
women at a common platform and help them in
developing the habit of savings. In SHG meetings mostly
issues related to availability of loan, financial literacy,
and livelihood options are raised and addressed.

2) Village Development Committee (VDC) Meeting in

each village at Baroda is a representation of SHG
leaders, Anganwadi workers, Panchayat members and
ATF staff. VDCs meetings provides the transparency
amongst the community member related to programme
implementation, it also serves as a platform to resolve
community issues with SHGs participation.

3) Livelihood and Income Generation Trainings: The programme

provides the livelihood opportunity to the women at their
doorsteps. Issues related to type of income generation
activities, financial and technical support required for
setting up the income generation units.

4) Environment, health, and safety engagement

NGO, No Meetings Quarterly Purpose: The Company work closely with the grass root level
Corporate and Six Organisation, local governments and corporate partners for
Partners, and Monthly the implementation of CSR projects and maximum outreach.
Government
Scope of Engagement & key topics, concerns raised during
Bodies
each engagement: With Government and Corporates
the Company engages for exploring partnership
opportunities. One of the key tasks under CSR function is
to work in partnership for better beneficiary outreach. With
Government departments lesioning is done for government
linkages and technical and financial support for the projects.
The Company identifies the corporates working on the same
cause/issue and collaborates with them for technical and
financial partnership model.

Other engagement includes sessions on health and safety

awareness.

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Identified as
Vulnerable or
Stakeholder Channels of Frequency of Purpose and scope of engagement including key topics and
Marginalized
Group Communication engagement concerns raised during each engagement
Group (Yes/
No)
Supply Chain No a. Meetings Quarterly Purpose: The Company engages with Supply Chain partners
partners b. Field Visits and Six for sustainable supply chain initiatives. As a part of the
Monthly Sustainable Natural Rubber procurement initiative the
Company has initiated livelihood projects with the rubber
dealers for rubber tapping community.

Scope of Engagement and Key Topics: The Company ensures

the well-being of its supply chain partner and engages with
them for the healthcare awareness initiatives. Employees
from the supply chain team conduct periodic awareness
sessions with supply chain partners on the issues related HIV/
AIDS awareness, Substance abuse and TB awareness.

Other engagement includes sessions on health and safety

awareness.

Raw Material No a. Physical visits Quarterly, Engage with our RM suppliers on a regular basis through
Suppliers b. Virtual meetings Monthly, and different channels on different aspects such as:
c. Emails Need Based
- Procurement Negotiations and contracting,
d. Telephone calls
e. Vendor Quality - Vendor Quality audits and assessments,
manuals
- Sustainability,
f. Supplier
engagement - Joint technical partnership,
meets
- Collaboration projects with Apollo suppliers

Other engagement includes sessions on health and safety

awareness.
Investor and No Stock Exchange Periodic Statutory Requirements
Shareholder Filings, Annual
Report, Annual
General Meetings,
Emails, Postal Ballots
etc.
Employee and No Newsletter, Training Ongoing & Company undertakes various awareness initiatives across
Workers & Awareness Need basis ESG themes, some of which are illustrated mentioned below:
sessions, FGDs,
- Refresher Training on Code of Conduct
Townhall, e-mails,
health-helpline, etc. - POSH and Human Rights awareness sessions

- Apollo Learning

- Environment, Health, and Safety Engagements

Consumers No Digital websites- Daily Product information
product and BOFO
website and social
media

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Leadership Indicators representation from Asha worker, teacher,

Panchayat representative etc., and any issue
related to beneficiary and/or village problem is
1. Provide the processes for consultation discussed during the VDC meeting and through
between stakeholders and the Board on collective participation, VDC members try to
economic, environmental, and social topics address the issues of the community.
or if consultation is delegated, how is • Under Solid Waste Management initiative,
feedback from such consultations provided steering committee is formed, which has
to the Board. representation of Panchayat members,
schoolteachers, NGO workers at village level.
The Company work towards minimizing the
The steering committee reviews the overall
environmental, economic and social impacts to our
functioning of the project on a periodic level and
business, in a compliant and responsible manner,
provides feedback for program improvement.
by adopting sustainable procurement policies and
practices. We strive to continuously enhance customer 2) Field Assessments: The Company engages with
satisfaction by providing cost effective and quality third party Organisation to undertake mid-
materials on a timely basis, while working together with line assessments of its projects and during the
our stakeholders on ESG aspects to enable sustainable assessment focused stakeholder consultations are
business practices. conducted to review the project delivery, outcome,
and impact. Based on the stakeholder feedback
To achieve the same, the Board provides the strategic
and suggestions, mid-course-corrections are
oversight and has constituted a Business Responsibility
incorporated under the programme strategy and
and Sustainability Committee, inter alia, to provide
implementation.
guidance and monitor the ESG progress. The Company
has diverse approach for stakeholder engagement. 3) Beneficiary/ Representative feedback: Apollo Tyres
The Board is updated from time to time on various Ltd has developed a strategy to gauge beneficiary
sustainability initiatives taken/to be undertaken by feedback of the programme and its services. A
the Company. At Apollo Tyres Ltd, sustainability report suggestion box/register is kept at all locations
reflecting the ESG initiatives under the review and and beneficiaries are encouraged to provide their
guidance of the Board is available on the website and feedback. During programme monitoring visit, our
is circulated to the Shareholders as a part of the Annual staff tries to address their concerns; and ensure
Report. integration of suggestion in the programme,
wherever and to whatever extent possible.
2. Whether stakeholder consultation is used to
support the identification and management Illustration: The customers (Truck Drivers), suffers from
of environmental, and social topic? (Yes/No) vision issues and are vulnerable to road accidents. During
the stakeholder consultation meetings same issue was
If so, provide details of instances as to how the inputs highlighted by the Transport Unions and Association.
received from stakeholders on these topics were The Company accepted the feedback and suggestions
incorporated into policies and activities of the entity. from the stakeholders and in the year 2015 Vision Care
service was integrated in the healthcare initiative.
Yes. Apollo Tyres Ltd have diverse approach for
stakeholder engagement which are detailed out for 3. Provide detail of instances of engagement
collecting stakeholder feedback and incorporating with, and actions taken to, address the
them into policies and activities of the Company:
concerns of vulnerable/ marginalized
1) Stakeholder Committees and Groups: Under each stakeholder groups.
community development initiative stakeholder
Apollo Tyres’ CSR program aims to enhance the
groups are formed for the continues feedback and
livelihood opportunities of the marginalised and
local issues redressal.
vulnerable communities and below highlights few
• Under Healthcare initiative, stakeholder instances of our action in this direction:
committee is formed, which has representation
a). Truck Drivers: The Company is committed towards
from transport unions, business owners from
providing continues healthcare support to the
the transshipment hubs, and government
customers. Limited access to healthcare facility
representatives. On a quarterly basis
and continuity in treatment are the major concerns
stakeholder consultation meeting is organized
faced by the trucking community. Through its
and feedback is sought.
healthcare centre the Company provides access to
• Under Livelihood project, Village Development healthcare facilities at the doorsteps of the trucking
Committee (VDC) is formed and has member community. Truck drivers who are identified as HIV

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positive, TB positive are linked with ART and DOTs treatment facility. Example: During the COVID time the Company
ensured to arrange the medicines and nutrition support to the truck drivers identified with TB and ensured the
continuity of the treatment.

b). Rural Women: Market linkage and access to finance are the major livelihood issues faced by the rural women;
to address this challenge, the Company invests in financial literacy capacity building, financial and government
linkages. For example, at Baroda, the Company has formed over 700 Self Help Groups (SHGs) and have provided
income generation trainings to the underprivileged women. The Company has supported the women to form the
Organic Farming Agri Women Cooperative and Marketing Society and these women have been trained on the organic
farming practices and techniques. The Company has provided them the support for organic farming certification
and as an outcome of these trainings over 400 women are engaged in organic farming activity and earning decent
income from it. Over 7,000 women at Baroda location are linked with National Rural Livelihood Mission (NRLM)
scheme of Government of India.

Principle 5 Businesses should respect and promote human rights

Essential Indicators

1. Employees and workers who have been provided training on human rights issues and policy(ies)
of the entity, in the following format:

Current Financial Year 2022- 23 Previous Financial Year 2021- 22

Category Total Number Percentage Total Number Percentage
(A) (B) (%) (B/A) (C) (D) (%) (D/C)
Employees
Permanent 3,040 3,040 100% 3,240 3,240 100%
Other than permanent 91 91 100% 94 94 100%
Total Employees 3,131 3,131 100% 3,334 3,334 100%
Workers
Permanent 4,795 4,795 100% 5,081 5,081 100%
Other than permanent 8,164 8,164 100% 8,349 8,349 100%
Total Workers 12,959 12,959 100% 13,430 13,430 100%

2. Details of minimum wages paid to employees and workers, in the following format:
Current Financial Year 2022- 23 Previous Financial Year 2021- 22
Equal to More than Equal to More than
Category Total Minimum Wage Minimum Wage Total Minimum Wage Minimum Wage
(A) Number % Number % (D) Number % Number %
(B) (B/A) (C) (C/A) (E) (E/D) (F) (F/D)
Employees
Permanent 3,040 0 0% 3,040 100% 3,240 0 0% 3,240 100%
- Male 2,965 0 0% 2,965 100% 3,150 0 0% 3,150 100%
- Female 75 0 0% 75 100% 90 0 0% 90 100%
Other than Permanent 91 0 0% 91 100% 94 0 0% 94 100%
- Male 72 0 0% 72 100% 66 0 0% 66 100%
- Female 19 0 0% 19 100% 28 0 0% 28 100%
Workers
Permanent 4,795 0 0% 4,795 100% 5,081 0 0% 5,081 100%
- Male 4,789 0 0% 4,789 100% 5,077 0 0% 5,077 100%
- Female 6 0 0% 6 100% 4 0 0% 4 100%
Other than Permanent 8,164 2,278 28% 5,887 72% 8,349 2,595 31% 5,755 69%
- Male 7,878 2,206 28% 5,672 72% 8,032 2,490 31% 5,542 69%
- Female 286 72 25% 215 75% 317 105 31% 213 69%

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3. Details of remuneration/ salary/ wages, in the following format (Amount in J lakhs per annum):

Male Female
Median salary/ Median salary/
Number wage of respective Number wage of respective
category category
Board of Directors (BoD) 11 3134.5 2 113.9
Key Managerial Personnel (KMP)* 3 4732.8 1 102.1
Employees other than BoD and KMP 2965 9.2 75 16.5
Workers 4789 7.2 6 2.7
* Includes Managing Director (MD) and Whole-time Director

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights
impacts or issues caused or contributed to by the business? (Yes/No)
Yes, Apollo Tyres Ltd has identified Mr. Dipankar Ghosh - Group Head Human Resources, Asia-Pacific Middle East, and
Africa (APMEA) and Ms. Ruchika Pal, Group Head- Corporate HR, Apollo Tyres Ltd as the Nodal person responsible for
addressing any concerns/ issues related to human rights in the Company.

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
At Apollo Tyres Ltd, there is a well-established mechanism available for all cadres of employees and workers to raise and
redress their grievances. The concerns can be raised in the following manner, via:

• Line Manager

• The HR Business Partner (HRBP) for business area/ region

In addition, if somebody wants to report a concern maintaining confidentiality, he can put that in writing to an exclusive
email ID: [email protected]

The raised concern/ issue is thoroughly investigated and depending on the assessment of the concern/ issue, appropriate
action is taken.

6. Number of complaints on the following made by employees and workers:

Current Financial Year 2022- 23 Previous Financial Year 2021- 22

Filed Pending Pending
Filed during
during resolution at Remark resolution at Remark
the year
the year end of year end of year
Sexual Harassment Nil Nil - Nil Nil -
Discrimination at Nil Nil - Nil Nil -
workplace
Child Labour Nil Nil - Nil Nil -
Forced Labour/ Involuntary Nil Nil - Nil Nil -
Labour
Wages Nil Nil - Nil Nil -
Other human rights related Nil Nil - Nil Nil -
issues

7. Mechanisms to prevent adverse The Process of Complaint registration upholds the

consequences to the complainant in below values.
discrimination and harassment cases. • When complainant register or report breach of the
Apollo Tyres values the diversity of the people with code of conduct; the Company
whom it works and the unique contribution they make.
1) Protect their rights, 2) Ensure support through
The Company have a long-standing commitment to
transparent process, 3) Uphold confidentiality
equal opportunities and intolerance of discrimination
and harassment.

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The Steps to register the complaint. Procurement and the guiding principles defined
therein. In addition, the guidelines for deployment
• The complainant may raise informal concern in the Apollo supply chain are based on the
by telephone, in person or in writing to their framework of 7 core subjects and 37 sustainability
line manager or HR Business Partner (HRBP). If, issues, which includes "Human Rights" as one of the
exceptionally, the concern is more serious, the 7 core subjects.
complainant can put the complaint in writing, via
email to: [email protected] • Apollo is a member of the GPSNR (Global Platform
for Sustainable Natural Rubber), which drives
The role of HRBP sustainability with all the stakeholders in the
Natural Rubber Supply Chain. The Natural Rubber
The HRBP ensures to maintain confidentiality, Listen to
supply chain requirements are aligned with the
the complaint in an empathetic way, provide any policy
Policy framework and guidelines from the GPSNR,
clarification required, provide options to find a comfortable
which includes "Human Rights" as one of the
way forward and provide requisite recommendations to
sections.
report directly at prescribed email ID.
• The Supplier Code of Conduct is a part of
8. Do human rights requirements form part of
minimum requirement at the time of selection and
your business agreements and contracts? onboarding of new suppliers, and it is to be treated
(Yes/No) in conjunction with the terms and conditions of the
commercial procurement contracts and would be
Yes, Human Rights requirements form an integral part
applicable if an active procurement relationship
of Apollo Tyres’ business agreements because of the
exists between Apollo Tyres Ltd and supplier
following:
partner.
• The Supplier Code of Conduct is aligned with
the ISO20400:2017 standard on Sustainable

9. Assessment for the FY 2022-23:

% of plants and offices that were assessed

(by entity or statutory authorities or third parties)
Child Labour 40%
Forced/ Involuntary Labour Nil
Sexual harassment 40%
Discrimination at workplace 40%
Wages 40%
Other Labor law compliances 40%
Note: 2 out of 5 plants assessed.

10. Provide details of any corrective actions taken or underway to address significant risks/ concerns
arising from the assessments at Qs. 9, above.
In the FY 2022- 23, no significant risk was found during the assessments.

Leadership Indicators

1. Details of a business process being modified/ 3. Is the premise/ office of the entity accessible
introduced as a result of addressing human to differently abled visitors, as per the
rights grievances/complaints. requirements of the Rights of Persons with
Disabilities Act, 2016?
Nil
At Apollo Tyres, we value diversity of people with whom
2. Details of the scope and coverage of any we work and commit to equal opportunity and intolerance
Human Rights due-diligence conducted. of discrimination and harassment. Apollo Tyres ‘Equal
Opportunity Policy’ is in line with the statutory compliance
During FY 2022- 23, no human rights due-diligence was
as stipulated under "The Rights of Persons with Disabilities
carried out.

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Act, 2016 and Rules, 2017". The Company ensures to provide support and facilities for the wellbeing of its employees, including
those with special needs to effectively discharge their duties in the Company.

4. Details on assessment of Value Chain Partners:

% of value chain partners (by value of business done with

such partners) that were assessed:
Child Labour 100%
Forced/ Involuntary Labour 100%
Sexual harassment 100%
Discrimination at workplace 100%
Wages 100%

Note: Apollo Tyres have a Supplier Audit System where the suppliers are audited on a periodic basis based on defined
audit criteria and frequency. As a part of the audit checklist, we assess our suppliers on requirements pertaining to Child
Labor, Forced Labor/ Involuntary Labor, Sexual Harassment, Discrimination at workplace, and Wages, and others.

5. Provide details of any corrective actions taken or underway to address significant risks/ concerns
arising from the assessment at Qs. 4 above.
Apollo Tyres Ltd has a well-defined supplier audit system and a standard supplier audit checklist covering all aspects of
health, safety, environment, and human rights. Based on the supplier audits conducted for the reporting period, there
are no significant risks / concerns observed. Hence Not applicable.

Principle 6 Businesses should respect and make efforts to protect and restore the environment

Essential Indicators

1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following
format:

Current Financial Previous Financial

Parameter
Year 2022- 23 Year 2021- 22
Total Electricity Consumption (A) GJ 1,849,597 1,855,605
Total Fuel Consumption (B) GJ 3,443,786 3,514,845
Energy consumption through Other Sources (C) GJ 985,695 1,087,213
Total Energy Consumption (A+B+C) GJ 6,279,078 6,457,663
Energy intensity per rupee of turnover (GJ/J Lakhs) 3.71 4.51
(Total energy consumption/turnover in rupees)
Energy intensity (GJ/Tonne of products) 10.55 11.23

Note: Indicate if any independent assessment/ evaluation/ assurance has been carried out by an external agency? (Yes/
No). If “Yes”, name the external agency. Yes, by TUV India Pvt Ltd

2. Does the entity have any sites/ facilities identified as designated consumers (DCs) under the
Performance, Achieve, and Trade (PAT) Scheme of the Government of India? (Yes/No)
If “Yes”, disclose whether targets set under the PAT Scheme have been achieved. In case targets have not been achieved,
provide the remedial action taken, if any.

No. None of our manufacturing facilities are Designated Consumer under (PAT), Scheme of the Government of India.

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3. Provide details of the following disclosures related to water, in the following format:

Current Financial Previous Financial

Parameter
Year 2022- 23 Year 2021- 22
Water withdrawal by source (in kilo-litres)
(i) Surface Water 1,623,129 1,829,885
(ii) Groundwater 14,674 -
(iii) Third Party Water 404,368 403,183
(iv)Seawater/ Desalinated water - -
(v) Others 23,573
Total Volume of water withdrawal (in KL) 2,065,744 2,233,068
(i + ii + iii + iv + v)
Total volume of water consumption (in KL) 2,065,744 2,233,068
Water intensity per rupee of turnover (Kl/J Lakh) 1.22 1.56
(water consumed/ turnover)
Water intensity (m3/MT of product) 3.47 3.88
Note: Indicate if any independent assessment/ evaluation/ assurance has been carried out by an external agency? (Yes/
No). If “Yes”, name the external agency. Yes, by Bureau Veritas (India) Pvt Ltd.

4. Has the entity implemented a mechanism for Zero Liquid Discharge (ZLD)? If “Yes”, provide
details of its coverage and implementation.
At all Apollo Tyres Ltd manufacturing facilities, all the process/Domestic wastewater is treated through either effluent
treatment plants (ETP) / Sewage Treatment Plant (STP) followed by tertiary treatment , as per requirements or
applicable norms which is reused in the system.

5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following
format:

Current Financial Previous Financial

Parameter Please specify unit
Year 2022- 23 Year 2021- 22
NOx mg/Nm3 65.78 60.89
SOx mg/Nm3 45.00 45.38
Particulate Matter (PM) mg/Nm3 66.24 79.86
Persistent organic pollutant (POP) mg/Nm3 57.00 59.86
Volatile organic compounds (VOC) NA NA NA
Hazardous air pollutants (HAP) NA NA NA
Others – please specify NA NA NA

Note: Indicate if any independent assessment/ evaluation/ assurance has been carried out by an external agency? (Yes/
No). If “Yes”, name the external agency. - NO

6. Please provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) and its
intensity, in the following format:

Current Financial Previous Financial

Parameter Please specify unit
Year 2022- 23 Year 2021- 22
Total Scope 1 Emissions (Break-up of the GHG into Metric tonnes of 292,368 331,220
CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 2 Emissions (Break-up of the GHG into Metric tonnes of 303,089 360,127
CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 1 and Scope 2 emissions per rupee of tCO2 eq/ H Lakh 0.353 0.483
turnover
Total Scope 1 and Scope 2 emission intensity tCO2 eq/MT of 1.00 1.20
product
Note: Indicate if any independent assessment/ evaluation/ assurance has been carried out by an external agency? (Yes/
No). If “Yes”, name the external agency. Yes, by TUV India Pvt Ltd

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7. Does the entity have any project related to 2) Increase in RE mix – the organisation’s investment
reducing Greenhouse gas emissions? in solar, hybrid capacity to move away from the
use of grid energy. In FY23, approximately 16% of
If “Yes”, then provide details. its power requirement in the reporting period were
met by renewable sources. The Chennai plant has
There is a climate change strategy in the organisation, guaranteed a supply of 40 million units of through
where an Environment Working Group (EWG) is its investment in solar power. The Company has
formed. The EWG has representation from Apollo world also invested in Solar Power 9.3 MW in its Hungary
operations. The remit of the group is to comply with plant and Hybrid power of 5 MW capacity for its
upcoming legislations, and most importantly to identify Limda Plant, Gujarat, India.
solutions to reduce emissions. EWG has identified 3
areas, 3) Improve energy efficiency - The Company has been
making efforts to achieve energy efficiency through
1) Increase in green fuels – The Company has started to improvements in its process design, conversion
move away from fossil fuel use to biofuel and Andhra & retrofitting of equipment and use of energy-
Pradesh facility in India is already running completely efficient equipment. Which has resulted nearly 74
on biomass. Similar opportunity is under investigation thousand GJ of energy savings in FY23.
for others manufacturing locations also.

8. Provide details related to waste management by the entity, in the following format:

Current Financial Previous Financial

Parameter
Year 2022- 23 Year 2021- 22
Total Waste Generated (in metric tonnes)
Plastic Waste (A) 1,449 1,405
E-Waste (B) 60 90
Bio-medical Waste (C) 0.12 0.35
Construction and Demolition Waste (C&D) (D) 0 15
Battery Waste (E) 20 43
Radioactive Waste (F) 0 0
Other Hazardous Waste generated (G) (Please specify, if any) 877 766
Other Non-Hazardous Waste generated (H) (Please specify, if any) 24,883 25,550
Total Waste Generated (A+B+C+D+E+F+G+H) 27,289 27,487
For each category of waste generated, total waste recovered through recycling,
re-using or other recovery operations (in metric tonnes)
Category Waste Name:
(i) Recycled 25,764 26,173
(ii) Re-used 995 1,314
(iii)Other recovery operations 4 0
Total 26,763 27,487
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category Waste Name:
(i) Incineration 175 178
(ii) Landfilling 351 184
(iii) Other disposal operations 0 19
Total 526 381

Note: Indicate if any independent assessment/ evaluation/ assurance has been carried out by an external agency?
(Yes/No). If “Yes”, name the external agency

9. Briefly describe the waste management practices adopted in your establishments. Describe the
strategy adopted by your Company to reduce usage of hazardous and toxic chemicals in your
products and processes and the practices adopted to manage such wastes.
Apollo Tyres Ltd has adopted various measures for managing the waste generated during business operations which is
explained below:

• 4Rs (Recycle, Reuse, Reduce, Recover) is the strategy adopted towards reduction of waste and reduce usage of
hazardous and toxic chemicals in products and processes.

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• All waste generated is collected and stored in designated locations in Value yard and is disposed-off as per applicable
regulatory requirements. The quantity of waste generated and disposed of is monitored and records are maintained.
This data is reviewed periodically, and waste reduction activities initiated are monitored.

10. If the entity has operations/ offices in & around ecologically sensitive areas (such as national
parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal
regulation zones, etc.) where environmental approvals/ clearances are required, please specify
details in the following format:

Whether the conditions of environmental approval/ clearance

S. Location of operations/
Type of operations are being complied with? (Yes/No)
No. offices
If “No”, the reasons thereof and corrective action taken, if any.
None of Apollo Tyres Ltd manufacturing units nor offices are in and/or around ecologically sensitive areas where
environmental approvals/ clearance is required or mandatory.

11. Details of environmental impact assessments of projects undertaken by the entity based on
applicable laws, in the current financial year 2022- 23

EIA Whether conducted Results communicated

Name and brief of Relevant
Notification Date by independent in public domain (Yes/
the project Web-link
No. agency (Yes/No) No)
Environmental Impact Assessment (EIA) of projects has not been undertaken by us based on applicable law in FY
2022- 23.

12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India;
such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of
Pollution) Act, Environment Protection Act and Rules thereunder (Yes/ No).
If “Not”, provide details of all such non-compliances, in the following format:

Specify the law/ Provide details Any fines/ penalties/ action taken by
S. Corrective action
regulation/ guidelines of the non- regulatory agencies such as pollution
No. taken, if any
which is not compliant compliance control board or by courts
Apollo Tyres Ltd’s all manufacturing facility are compliant with applicable laws, regulations, and guidelines in India.

Leadership Indicators

1. Provide break up of the total energy consumed (in Joules or multiples) from Renewable Energy
and Non-Renewable sources, in the following format:

Current Financial Previous Financial

Parameter
Year 2022- 23 Year 2021- 22
From Renewable Sources
Total electricity consumption (A) GJ 323,556 214,520
Total fuel consumption (B) GJ 329,079 46,348
Energy consumption through other sources (C) GJ - -
Total energy consumed from renewable sources (A+B+C) GJ 652,635 260,868
From Non-Renewable Sources
Total electricity consumption (D) GJ 1,526,041 1,641,086
Total fuel consumption (E) GJ 3,114,706 3,468,497
Energy consumption through other sources (F) GJ 985,695 1,087,213
Total energy consumed from renewable sources (D+E+F) GJ 5,626,443 6,196,795

Note: Indicate if any independent assessment/ evaluation/ assurance has been carried out by an external agency? (Yes/
No). If “Yes”, name the external agency. Yes, by TUV India Pvt Ltd.

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2. Provide the following details related to water discharge:

At all Apollo Tyres Ltd manufacturing facilities, all the process/Domestic wastewater is treated through either effluent
treatment plants (ETP) / Sewage Treatment Plant (STP) followed by tertiary treatment , as per requirements or
applicable norms which is reused in the system.

3. Water withdrawal, consumption, and discharge in areas of ‘Water Stress’ (in kilo litres):
For each facility/ plant located in areas of water stress, provide the following information:
i. Name of area
ii. Nature of operations
iii. Water withdrawal, consumption, and discharge in the following format
None of Apollo Tyres Ltd manufacturing facility operates in area of ‘water stress’ region, therefore this question is not
applicable.

4. Please provide details of total Scope 3 emissions and its intensity, in the following format:

Current Financial Previous Financial

Parameter Please specify unit
Year 2022- 23 Year 2021- 22
Total Scope 3 Emissions (Break-up of the GHG into Metric tonnes of 162,351 148,012
CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 3 emissions per rupee of turnover tCO2 eq/H LAKH 0.10 0.10
Total Scope 3 emission intensity (optional)- the tCO2 eq/MT of 0.27 0.26
relevant metric may be selected by the entity product
Note: Indicate if any independent assessment/ evaluation/ assurance has been carried out by an external agency? (Yes/
No). If “Yes”, name the external agency. Yes, by TUV India Pvt Ltd

5. With respect to the ecologically sensitive areas reported in Qs. 10 of Essential Indicators above,
provide details of significant direct & indirect impact of the entity on biodiversity in such areas
along with prevention and remediation activities.
None, of our manufacturing site nor office premises are in and/or around ecological sensitive areas where environmental
approvals/ clearances are required, hence it is not applicable to us.

6. If the entity has undertaken any specific initiatives or used innovative technology or solutions
to improve resource efficiency, or reduce impact due to emissions/ effluent discharge/ waste
generated, please provide details of the same as well as outcome of such initiatives, as per the
following format:
S. Initiative Details of the initiative (Web-link, if any, may be
Outcome of the Initiative
No. undertaken provided along with summary)
1 Recycling treated Recycling of treated process effluent from ETP Water Conservation
effluents through Ultra Filtration (UF) & Reverse Osmosis.
2 Multiple Effect Treatment of the reject effluent from Effluent Zero liquid discharge plant
Evaporator Treatment Plant (ETP)
3 Water 1. Increased reuse of rainwater into process. Reduction in freshwater withdrawal
Conservation 2. Recycling of treated process effluent from ETP and increased of recycled water in
initiative through Ultra Filtration (UF) & Reverse Osmosis the plant operation.
3. Treatment of STP outlet water with Ultra filtration The total recycled water used in
and use it for toilet flushing FY23 is approximate 43%.
4 Energy Energy conservation through process redesign, Total Energy Saved in FY23 is
conservation conversion & retrofitting of equipment and use energy nearly 74 thousand GJ, and GHG
initiative efficient appliances. avoidance through energy saving
was 10,547 tCO2.
5 Recovery/ Reclamation of hydraulic oil through oil filtration Oil waste reduction
Reclamation process
6 3 Diesel forklifts 2 Nos of Diesel forklift of banbury and 1 no at RMS Emission reduction
replaced with replaced with electric forklifts
Electric forklifts

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7. Does the entity have a business continuity by Tyre Industry Project under World Business Council
and disaster management plan? Give details for Sustainable Development (WBCSD) and aims to
in 100 words/ web-link. work towards sustainable natural rubber by focusing on
Socio-Economic, Environment, and Governance issues in
The Company has also put in place a robust risk natural rubber supply chain.
management framework that identifies and evaluates
business risks and opportunities. The Company’s risk To mitigate adverse impacts to environment, Apollo
management processes ensure that these risks are Tyres Ltd has rolled out its Sustainable Natural
promptly identified, and an appropriate mitigation Rubber Policy, Apollo Sustainable Natural Rubber
action plan is developed and monitored periodically to policy (ASNRP), which is built around GPSNR Policy
drive sustainable growth. framework and includes policy commitments towards
risk identification and mitigation of adverse impacts
Emergency Management plan is available in all Apollo to environment, biodiversity such as deforestation,
Tyres Ltd plants and the plan is developed considering preventing degradation of High Conservation Value and
various emergency scenarios pertaining to operations High Carbon Stock areas. ASNRP has been shared with
(e.g., Fire etc.) and Natural calamities (e.g., Earthquake all our natural rubber supplier partners and obtained
etc.). Dedicated teams have been identified and people acceptance on it.
are periodically trained with respect to the Emergency
plan. The Emergency Plan is tested and reviewed Furthermore, Apollo Tyres Ltd conducted a virtual
periodically; Emergency mock drills are conducted sustainability workshop for its global supplier partners
regularly for the same. in 2022 to share its requirements and expectations for
the upstream supply chain and sought commitment
Business Continuity Plan from our global supplier partners towards use of
non-fossil based fuels in operation, use of renewable
The purpose of this plan is to recover the Information energy in operation to lower carbon emission, practice
Technology (IT) systems at an alternative location sustainable consumption, ensure resource conservation,
and to provide user access to them within a response ensure water efficiency, optimize operations, set
time objective of 48 hours. The procedures set out ambitions to lower carbon emissions, minimize waste in
in this document should be used only as guidance the manufacturing process, and to become responsible
when responding to an incident and responsibility towards environment and society.
of response. It ensures that business operations can
continue in limited form until IT systems are restored 9. Percentage of value chain partners (by value
and information security controls always remain in of business done with such partners) that
place to protect classified information. were assessed for environmental impacts.
Apollo firmly believes in setting up processes and plans 100% of our suppliers are assessed for environmental
in place to enable the Company to continue the delivery impacts during the periodic audits as per pre-defined
of products or services at acceptable levels following a and standard audit checklist, an audit criteria and
disruptive incident. Apollo has set up process of creating frequency standard. Our supplier audit questionnaire
systems of prevention and recovery to deal with potential comprises of Health, Safety, and Environment
threats to the Company. In addition to prevention, the (HSE) section, wherein requirements pertaining to
goal is to enable ongoing operations before and during environmental management systems are also being
execution of disaster recovery. Business Continuity verified. Waste management process such as initiatives
Plans and procedures are periodically tested based to reduce, re-use and re-cycle the waste generated
on contingency test plan and audited periodically by from the operations, system for waste collection,
internal and external audit agencies. segregation, and disposal across the plant including
the office premises are also verified for supplier's
8. Disclose any significant adverse impact to manufacturing plant, which helps in minimizing impact
the environment, arising from the value chain to environment.
of the entity. What mitigation or adaptation
measures have been taken by the entity in
this regard.
Apollo Tyres is a member of Global Platform for
Sustainable Natural Rubber (GPSNR), which is formed

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Principle 7 Businesses, when engaging in influencing public and regulatory policy, should do so in
a manner that is responsible and transparent

Essential Indicators

1. (a). Number of affiliations with trade and industry chambers/ associations.

(b). List the top 10 trade and industry chambers/ associations (determined based on the total numbers of such body)
the entity is member of/ affiliated to.

S. Reach of trade and industry chambers/

Name the trade and industry chambers/ associations
No. associations (State/ National)
1. Confederation of Indian Industry [CII] National
2. Federation of Indian Chamber of Commerce and Industry [FICCI] National
3. PHD Chamber of Commerce and Industry National
4. Society of Indian Automobile Manufacturers National
5. Automotive Tyre Manufacturers’ Association National

2. Provide details of corrective action taken or underway on any issues related to anti-competitive
conduct by the entity, based on adverse orders from regulatory authorities.

Name of authority Brief of the Case Corrective action taken

Competition The Competition Commission of India (CCI) issued We had appealed against the judgement
Commission of an order on February 2, 2022 mentioning that it of CCI in NCLAT, which has remanded back
India (CCI) has held five tyre manufacturers and Automotive the case to CCI for fresh adjudication. CCI
Tyre Manufactures Association (ATMA) guilty of has filed an appeal in the supreme court
contravention of the provisions of Section 3 of the against the Order passed by the NCLAT.
Competition Act, 2002 and imposed a penalty of Hearing to consider admission of appeal is
H 425.53 Crores on the Company. likely to come after September 2023.
The Company filed an appeal against the aforesaid
order before the National Company Law Appellate
Tribunal, New Delhi ("NCLAT"). The NCLAT through
its judgement dated December 1, 2022 disposed off
the appeals by remanding back the case to CCI for
review.

Principle 8 Businesses should promote inclusive growth and equitable development

Essential Indicators

1. Details of Social Impact Assessments (SIA) projects undertaken by the entity based on applicable
laws, in the current financial year 2022- 23:

SIA Whether conducted by Results communicated

Name and brief Date of Relevant
Notification independent external in public domain
detail of project notification web-link
No. agency (Yes/ No) (Yes/No)
Not Applicable

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2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is
being undertaken by your entity, in the following format:

S. Name of the project for No. of project affected %of PAFs Amounts paid to PAFs
State District
No. which R&R is ongoing families (PAFs) covered by R&R in the FY (in J)
Not Applicable

3. Describe the mechanisms to receive and face of the community, they help in resolving the
redress grievances of the community. issues with active community participation.

At Apollo Tyres Ltd, the Company has developed c. Formation of Village Development Committee
a robust community engagement mechanism for (VDC): Community plays an important role
grievance redressal and programme improvement under in the success of any community initiatives.
its Corporate Social Responsibility (CSR) initiatives. The programme has developed a process of
Details of community engagement plan are given regular stakeholder dialogue, consultation, and
below: feedback through SHG and Village Development
Committee (VDC) meetings. This also ensures that
a. Field Visits: Physical field visit plays an important stakeholder’s feedback is captured and the same
role in assessing the real time progress of any is implemented. Remedial measures are arrived
project. The local team visits the field programme at through these forums to resolve the issues and
on a weekly basis and ensures that all the enhance stakeholder participation.
deliverables are met as per the plan. The team
individually meets the stakeholder to know whether d. Midline and Impact Assessment: To evaluate
they have received the benefits of the programme the overall performance of the project midline
or not. During the field visit ATF representatives assessment is conducted at 3rd year of the
engage with the community on a one-to-one basis implementation of project and impact assessment
by conducting meetings, interactions etc. study is conducted after completion of 5 years.
Focused Group Discussions are conducted with
b. Involvement of Community Resource Person the different stakeholder groups to identify and
(CRP): Include or engage local beneficiaries to problem and improvement areas. Based on the
implement the programme as they have a strong community recommendation and study findings
local connection with the community. For instance, mid-course correction is conducted.
Peer Educators (PEs) deliver awareness sessions at
the Transhipment Hub. Community Resource Person We ensure by following above steps to address the grievance
(CRPs), where in each village one woman from the of the community and provide solution to the problem;
SHG is identified and trained on documentation however, no grievance was reported by the community in
and programme monitoring. CRP and PEs are the the reporting period related to our CSR activities.

4. Percentage of input material (input to total inputs by value) sourced from suppliers:

Current Financial Previous Financial

Year 2022- 23 Year 2021- 22
Directly sourced from MSMEs/ Small producers 5.37% 6.93%
Sourced directly from within the district and neighboring districts 39.25% 30.57%

Leadership Indicators

1. Provide details of actions taken to mitigate any negative social impacts identified in the Social
Impact Assessments (Reference Qs. 1 of Essential Indicators, above).

Details of negative social impact identified Corrective action taken

Not Applicable

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2. Provide the following information on CSR projects undertaken by your entity in designated
aspirational districts as identified by government bodies:

S. Aspirational
State Amount Spent (in J)
No. District
1. Gujarat Dahod Total Budget: H 2,300,000
Actual expense FY23: H 2,300,000
2. West Bengal (Farakka Healthcare Centre) Murshidabad Total Budget: H 857,750
Actual expense FY23: H 781,381

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
marginalized/ vulnerable groups? (Yes/No)

Apollo Tyres are encouraging and enabling its supply chain partners to run centers i.e., 11 centers for Natural Rubber
(sheet rubber) grading, currently over 50% of the workforce in these grading centers are women. The procured raw
rubbers are processed manually for improvement and inspection purposes to ensure the right quality for the product.

(b) From which marginalized/ vulnerable groups do you procure?

The Natural Rubber grading centres have employed women for grading of sheet rubber, from neighboring areas
which provides them with employment opportunity and skill development prospects.

(c) What percentage of total procurement (by value) does it constitute?

In the FY 2022-23, sourcing from these grading centres accounted for 5% of the total procurement.

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by
your entity (in the current financial year 2022- 23), based on traditional knowledge:

S. Intellectual Property based on traditional Owned/ Acquired Benefit Shared Basis of calculating
No. knowledge (Yes/No) (Yes/ No) benefit share
Not Applicable

5. Details of corrective actions taken or underway, based on any adverse order in intellectual
property related disputes wherein usage of traditional knowledge is involved.

Name of authority Brief of Case Corrective action taken

Not Applicable

6. Details of beneficiaries of CSR Projects:

%
No. of
Beneficiaries
persons
S. from
CSR Project benefited
No. vulnerable &
from CSR
marginalized
Projects
groups
1. Healthcare for Trucking Community: A nomadic lifestyle and limited access to 1,100,867 100%
Healthcare facilities leaves truck drivers vulnerable to various healthcare issues.
This is the reason it chose the trucking community as its target beneficiaries (they
are also our key customers). The Company has established 32 Healthcare Centres
in transhipment hubs spanning 19 Indian states, providing healthcare facilities at
the doorsteps of this community. The programme provides healthcare services such
as prevention and awareness of HIV-AIDS, Vision Care, Awareness on Integration
of Tuberculosis and other Known-Communicable diseases such as Diabetes, High
Blood Pressure and General Treatment facility, COVID testing and Vaccination
support.

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%
No. of
Beneficiaries
persons
S. from
CSR Project benefited
No. vulnerable &
from CSR
marginalized
Projects
groups
Key Services:
1. HIV-AIDS Awareness and Prevention
The service provided under HIV Awareness and Prevention includes Behaviour
Change Communication (BCC), Sexually Transmitted Infection (STI) Diagnosis
and Treatment, Counselling, Condom Promotion, Integrated Counselling Testing
Centre (ICTC) support and Awareness through Peer Educators (volunteers).
Peer Educators (PE) or volunteers play an important role in awareness creation
and beneficiary referrals to healthcare centres due to their local connect. So far,
the programme has mobilized nearly 1021 active PEs across its locations.
2. Vision Care
Vision impairment is one of the most common yet most neglected issues
among the trucking community. Apollo Tyres has partnered with Essilor India
Pvt Ltd under its 2.5 New Vision Generation initiative to provide regular and
affordable vision check-ups for the trucking community Periodic eye check-up
camps, spectacles distribution to the affected and cataract treatment to linked
government hospitals are also facilitated at transshipment hubs.
3. Awareness on Tuberculosis (TB)
ATF embarked on TB awareness initiative in 2017 for its trucking community,
given it is co-infection with HIV. ATF established 13 Designated Microscopy
Centres at transshipment hubs with the support of the Government of India to
bring TB testing and treatment facilities to the doorsteps of its beneficiaries.
Positive TB patients were linked with Directly Observed Treatment (DOTs)
services for treatment. ATF partnered with The Union, USAID and Central TB
Division for the implementation of this initiative.
4. Other Non-Communicable Disease (NCDs)
Diabetes and high blood pressure have been emerging as serious health issues
among the trucking community. The Company offers diabetes and blood
pressure testing facilities to the beneficiaries, which has resulted in early
detection and proper treatment.
5. Mobile Medical Units (Apollo Tyres Healthcare Express)
In extension to its static Healthcare Centres, mobile alternatives continued to
be provided to enhance the connectivity of trucking community. Mobile medical
units (Apollo Healthcare Express) provide its services at highways, district borders
and trucking halt points. The mobile medical units are currently operational at
Delhi, Namakkal (Tamil Nadu), Cuttack (Odisha) and Chhindwara (Madhya
Pradesh).
The Company also organises regular health camps (Sakushal Saarthi) for the
benefit of the employees of its fleet owners.
6. Oral Hygiene
High addiction to tobacco (smoking and chewing) and poor oral hygiene is a
major health risk, among truck drivers. Apollo Tyres began the oral hygiene
services in FY20 with dedicated initiatives to spread awareness and encourage
oral care.

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%
No. of
Beneficiaries
persons
S. from
CSR Project benefited
No. vulnerable &
from CSR
marginalized
Projects
groups
2. Solid Waste Management & Sanitation 1,07,150 100%
Aligning with National development agenda and contributing to ’Swachh CMTN-
Bharat Abhiyan’, Apollo Tyres has been running various projects on solid 8,924
waste management and safe sanitation under the umbrella of SPARSH, with
CMV- 93,513
the objective to promote a healthy and sustainable lifestyle amongst the
local communities. ‘Clean My Transport Nagar’, ‘Clean My Village’, ‘Sanitation Sanitation-
Management’ and ‘End of Life Tyre Playgrounds’ are four initiatives initiated 2,642
under this theme.
ELT- 2,071
SPARSH stands for S – Segregate Waste; P – Practise Composting; A – Awareness
Generation; R – Reduce, Reuse & Recycle; S – Safe Sanitation; H – Hygiene for All.
Key Services:
1. Clean My Transport Nagar (CMTN)
Devised to cater to the stakeholders in transshipment hubs, the CMTN
programme is aimed at improving waste management and cleanliness in these
areas. Basic services like door-to-door waste collection, cleaning of roads/lanes,
segregation of waste, composting from wet waste and awareness generation
are provided to the community under this initiative.
2. Clean My Village (CMV)
Clean my Village is a similar initiative to CMTN, designed to benefit communities
around our manufacturing locations. Waste management best practices
are introduced and ingrained into everyday lives through systematized
programmes of education and hands-on training. As a result, there has been
visible enhancement, both in the environment and the health of individuals.
3. Sanitation Management
Apollo Tyres believes that hygiene and sanitation is a basic right of every
individual and imperative for a healthy environment as well. To meet this cause,
the Company has undertaken several sanitation managements projects in line
with the Clean India campaign. The project has greatly helped communities,
especially around our manufacturing locations. The Company has constructed
toilet cum bathing spaces for underprivileged communities around the Chennai
manufacturing plant and community toilets in transshipment hubs at the Delhi
and Agra locations.
4. End of Life Tyres Playground (ELT)
At Apollo Tyres, we constantly look for methods and processes that help in
greening the product life cycle. Recycling used tyres is a critical part of this
strategy. The End-of-Life Tyres Playgrounds (ELT) is one such application where
the Company converts waste tyres into exciting play structures. This initiative
has helped introduce kids to the concept of recycling.
3. Livelihood for Rural Women 1,579 100%
Navya, the Company’s flagship endeavor, is an attempt to empower underprivileged
rural women economically, socially, and emotionally. It supports their livelihood
needs by providing them with income generation opportunities at their doorstep.
The programme also undertakes several initiatives to mitigate gender discrimination
and educate on gender rights.

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%
No. of
Beneficiaries
persons
S. from
CSR Project benefited
No. vulnerable &
from CSR
marginalized
Projects
groups
Key Activities:
1. Self-Help Group (SHG)
A powerful tool for women’s empowerment, SHGs, bring women together.
Through Navya, Apollo Tyres undertakes a two-pronged approach towards
SHGs by strengthening the existing ones and creating new ones. SHGs inculcates
the habit of savings among beneficiaries. Women receives training in financial
literacy, book-keeping, documentation and others. Additionally, women are
also taught to deal with social issues like domestic violence and gender rights,
among others.
2. Livelihood Training and Income Generation
Skill development and training is provided to build earning capacity, enhance
economic independence and create livelihood sources. The training includes
farm-based and non-farm-based activities. Livestock care and management
training is also provided to help widen the scope of income generation.
3. Linkages with Government Schemes and Markets
Programme Navya not only provides livelihood opportunities to rural women
but also links them to various government-run schemes and relevant markets
to cause a multiplier effect in improving their socio-economic status. While the
government schemes provide financial aid, the liaison with markets and service
sector helps drive entrepreneurship.
4. Biodiversity Conservation: a global initiative for Apollo Tyres, wherein projects are 56,577 100%
undertaken in India, Hungary and Netherlands. In India, Mangrove conservation is
a key initiative, wherein a Mangrove Conservation project is being implemented
in Kannur district, Kerala. Under this initiative awareness sessions are conducted
for the local community for mangrove conservation. For mangrove restoration and
conservation periodic plantation activities are conducted in different panchayats
of Kannur district.
Climate change poses a fundamental threat to the places, species and people’s
livelihoods. To address the issue of climate change mitigation afforestation projects
are initiated at Tamil Nadu and Gujarat locations. The project also engages with the
farmers for providing agriculture interventions for soil productivity enhancement.
Under the afforestation initiative, at Tamil Nadu 3.5 lakh teak trees are being
maintained. At Gujarat location, under Miyawaki project total 10,000 planted
trees are maintained.
5. Local Initiatives: In addition to the above four core themes, within the radius of 38,058 100%
25-30 kms of our manufacturing locations, various local initiatives are implemented
which are based on local stakeholder requirement. Details of such initiatives are:
Access to purified drinking water: The organisation has set up a RO drinking water
plant at Orgadam village, Chennai Tamil Nadu and Chinnapanduru village, Chittoor
Andhra Pradesh. Through this initiative beneficiaries have access to purified drinking
water.
Eco restoration of Ponds: The organisation has mapped the condition of water
bodies through research study in the communities around the manufacturing
locations. Based on the findings the organisation has restored few ponds in Chennai,
Limda and Perambra locations. The main objective of this initiative is improving the
condition of water bodies, restoring and enhancing the aqua biodiversity. Total 14
ponds, covering area of 3 lakh square feet have been restored by the organisation
through pond deepening, desilting, bunding and maintenance activity.

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%
No. of
Beneficiaries
persons
S. from
CSR Project benefited
No. vulnerable &
from CSR
marginalized
Projects
groups
At Baroda location, the organisation also supports government’s pond deepening
initiative under Sujalam Sufalam Jal Sanchay Abhiyan (SSJA). SSJA is a Gujarat
state government’s water conservation programme to deepen water bodies in the
state before monsoon. The scheme focuses on deepening lakes, ponds, check-dams
and rivers by removing silt through public participation utilizing the Mahatma
Gandhi National Rural Employment Guarantee Act (MGNREGA).
6. Philanthropic Initiatives: The organisation also supports the underprivileged 5 100%
and deprived communities by undertaking philanthropic initiatives through
Taru Foundation. The initiative ranges from providing education support to
underprivileged girls to providing healthcare facilities to rural people and
distributing food items to eradicate hunger and poverty.

Principle 9 Business should engage with and provide value to their consumers in a responsible
manner

Essential Indicators

1. Describe the mechanisms in place to receive for registering complaint and get resolution within
and respond to consumer complaints and 2 to 4 days depending on the product category.
feedback. • Customer will receive relevant ticket number as
Apollo Tyres Ltd has a well-defined and robust reference if registered at call center or business
mechanism to receive and respond to consumer partner and receipt number with document in case
complaints in a timely, effective, and transparent of registering at Apollo's area business units.
manner. The mechanism is elaborated in the following
• After registering the complaint, customer tyre
steps:
will be inspected by our authorized inspector
• Customer can raise their complaint using various and will be given inspection document or award
channels such as Customer Care number: 1800- letter with reason for failure whatever whether its
212-7070, Apollo Samadhan Application, directly manufacturing or operational.
approach to all our Apollo Offices, or via social
• Post the complaint resolution process is over, a call
media and website.
from apollo customer care will go to customer for
• Customer upon any complaint occurrence in the collecting feedback on the resolution satisfaction.
product, can call apollo customer Care or can
Social Media and Website: Whosoever comments or
approach any of ATL authorized business partner or
reaches out, the details are sent to the Customer Service
can approach directly to Apollo's area business units
team which further responds and closes requests.

2. Turnover of products and/services as a percentage of turnover from all products/services that

carry information about:

As percentage to total turnover

Environmental and social parameters relevant to the product All necessary information as per regulatory
Safe and responsible usage requirements are disclosed on all our products.
Recycling and/or safe disposal

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3. Number of consumer complaints in respect of the following:

Current Financial Year Previous Financial Year

2022- 23 2021- 22
Remarks Remarks
Pending at end Pending at
Received Received
of year end of year
Data Privacy 0 0 - 0 0 -
Advertising 0 0 - 0 0 -
Cyber-security 0 0 - 0 0 -
Delivery of essential services 0 0 - 0 0 -
Restrictive Trade Practices 0 0 - 0 0 -
Customer Complaints 614,061 710 - 571,504 0 -

4. Details of instances of product recalls on account of safety issues:

Number Reasons for recall

Voluntary Recalls 0 NA
Forced Recalls 0 NA

5. Does the entity have a framework/ policy vendors/ distributors, contractors, customers, third
on cyber security and risks related to data parties, or business partners whose Personal Data is
privacy? (Yes/No). collected, stored, controlled and/ or processed by ATL
is protected. Both PII and SPII are collectively referred
If available, provide a web-link of the policy. to as Personal Data in the document. The Policy acts
as an umbrella policy which details steps taken by ATL
At Apollo Tyres Ltd, a risk management Charter to protect Personal Data in terms of having relevant
and Policy is available that outlines the Company’s polices and processes or setting procedures to adhere
approach for efficient, effective, and demonstrable Risk to data privacy laws to secure and protect Personal
Management. The document can be accessed in the Data of Data Subjects. Further, how Personal Data are
link below: handled, controlled, and processed in compliance with
the applicable Data Protection laws is also covered by
https://corporate.apollotyres.com/content/dam/
this Policy.
o r b i t /a p o l l o - c o r p o r a t e / i n v e s t o r s /c o r p o r a t e -
governance/codes-policies/codes-policies/Risk%20 Scope and Coverage
Management%20Charter%20and%20Policy.pdf
This Policy applies to all ATL employees, vendors/
The elements of risks identified include cyber security distributors, contractors, interns, customers, individuals,
for which a framework for assessing external and or business partners who receive Personal Data from
internal risks is required. For fulfilling this requirement, ATL, who have access to Personal Data collected or
the Company has formulated a Data Protection Policy, processed by ATL, or who provide Personal Data to ATL,
hosted on the Company Intranet. The excerpt of the regardless of geographic location. All partner firms and
policy is mentioned below: any Third-Party working with or for ATL, and who have
or may have access to Personal Data, will be expected
Introduction
to have read, understand, and comply with this Policy.
The purpose of the Personal Data Protection Policy No Third Party may access Personal Data held by ATL
(referred to as the “Policy”) is to protect Personal Data without having first entered into a confidentiality and
of employees, contractors, vendors, interns, associates, data privacy and protection agreement.
customers, business partners and any third party
related to Apollo Tyres Limited or any of its subsidiaries, 6. Provide details of any corrective actions
affiliates, joint venture companies and associates taken or underway on issues relating
[including its European entities] (collectively referred to to advertising, and delivery of essential
as the “ATL”) as per the requisite Data Protection laws services, cyber security and data privacy
and regulations applicable to ATL. of customers; re-occurrence of instances of
product recalls, penalty/ action taken by
This Policy also aims to highlight the principles of
regulatory authorities on safety of products/
data protection on the basis of which the Personally
services.
Identifiable Information (“PII”) and Sensitive Personally
Identifiable Information (“SPII”) of employees, Not Applicable.

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Leadership Indicators • Training programs to OE Service Team and

OE Franchisees to further deliver educational
information on product and its application to fit
1. Channels/ platforms where information on and tyre care maintenance.
products and services of the entity can be
accessed (provide web link, if possible) • Posts on social media, blogs on our websites, and
videos on our YouTube Channel.
Apollo Tyres Ltd disseminates product and service
information through various channels, which are 3. Mechanism in place to inform consumers of
illustrated below: any risk of disruption/ discontinuation of
essential services.
• Website: www.apollotyres.com
Not Applicable
• Apollo Customer Care - 1800-212-7070

Other Channels:
4. Does the entity display product information
on the product over and above what is
• https://shop.apollotyres.com/ mandated as per the local laws? (Yes/ No/
Not Applicable).
• https://www.apollotyres.com/en-in/
If “Yes”, provide details in brief.
• https://www.facebook.com/ApolloTyresLtd/
Did your entity carry out any survey with
• https://twitter.com/apollotyres regard to customer satisfaction relating to
• https://www.youtube.com/channel/UCQ89n-
the major products/ services of the entity,
QykQLTzw69wxZQSzg significant locations of operation of the
entity or the entity as a whole? (Yes/ No).
• https://www.instagram.com/apollotyresltd/
At Apollo Tyres Ltd, for product services, customer
• https://www.linkedin.com/Company/apollo-tyres- feedback provided during the customer resolution
ltd./myCompany/verification/ satisfaction survey on the quality of service from our
Apollo customer care is taken into consideration.
2. Steps taken to inform and educate
consumers about safe and responsible usage 5. Provide the following information relating to
of products and/ or services. data breaches:
Apollo Tyres Ltd recognizes its responsibility to care for (a). Number of instances of data breaches along-with
its customers and the Company is committed to provide impact:
high and consistent levels of service to its customers.
The Company believes that its customers and whom Nil
it serves is central to everything it does, to do so it
(b). Percentage of data breaches involving personally
ensures to disseminate appropriate information and
identifiable information of customers.
communication to its customers, such as:
Nil.
• Customer engagement activities where customers
are educated and informed about product and its
application to fit and tyre care maintenance.

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Annexure IV

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN

EXCHANGE EARNINGS AND OUTGO
A) CONSERVATION OF ENERGY data from highly energy intensive machine’s like Mixers
to AWS cloud. Multiple projects were identified based
(i) The steps taken or impact on conservation of on Deep analytics and on implementing those projects
energy improved productivity by 10% reducing energy by 3%
which in turn reduced the CO2 emission to the tune of
Practicing energy management standard (ISO: 365 Tons/ Month.
50001:2018) across Apollo plants, which helped
to improve & sustain energy performance of the (ii)Steps taken by the Company for utilizing
organisation. alternate sources of energy
The energy saving projects (energy consumption As per Apollo vision to increase the percentage of
reduction, improving utility generation efficiency, heat renewable power contribution to 30% by the year of
recovery projects, adopting alternate methodology 2030 and 100% by the year of 2050 and reduction of
and automated processes) identified in the process of carbon footprint, hybrid group captive power is being
practicing ISO: 50001 are implemented in plants. initiated for all across the plant as part of horizontal
deployment.
Internal and external Energy audits are conducted to
improve the energy performance. Usage of 100% briquette as a alternate fuel in place of
coal implemented in Andhra Pradesh plant and 30% of
In order to bring in more enhanced attention
briquettes in Kerala plants. Usage of 100% briquette
towards energy saving, a focused interplant group of
as a alternate fuel in place of coal is explored to all the
energy managers identify new energy improvement
plant in the near future to reduce carbon emission.
opportunities in utility system.
(iii)The capital investment on energy
Energy Projects & Activities strengthened up:-
conversation equipments
• Forward planning for optimized usage of energy
Roof water harvesting facility planned to set up in
sources (direct & indirect) to control cost is an
Kerala plants like Chennai and AP plant.
ongoing YOY exercise.
This year also continued to identify energy saving
• Implementation of SCADA system to monitor,
projects, which can be, implemented horizontally all
analyse & control process side-specific energy
across the location that will improve sustainability and
consumption.
profitability.
• Digitization being initiated to monitor the energy
Rolling capex rolled out for all the plants for
performance by creating a real-time on line dash
implementing various energy saving projects.
board for energy-consuming user and senior
management for taking timely corrective actions. Following Energy efficiency projects shortlisted for
further evaluation for more efficient usage of utilities.
• Horizontally deployed identified energy-saving
projects for improving groups energy footprints. • Use of IE3/IE4 energy efficient motors is made a
norm across plants for all future purchases.
• Training provided on regular basis to employees to
enhance their awareness about energy conservation • Horizontal deployment of energy efficient vacuum
and improve their skills. pump to be installed in all the plants.
• Management conducts focused energy • Pilot project implementation of automatic
performance and efficiency comparison review condenser tube cleaning system to improve the
meetings. chiller energy efficiency.
Another new initiative is usage of Data science to • Alternate method of cooling tower maintenance by
improve the productivity from Equipment which in turn installing SBR system to avoid the auto chemical
help to reduce the Energy consumption and improve dosage system and manual cleaning system to
our carbon footprint. We believe machines are talking maintain the cooling tower efficiency and reduce
and need to listen so on those line started streaming the operational cost.

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• AHU upgradation from single stage to multistage 5. Supporting sustainability initiatives: Our
cooling method to improve the chilled water commitment to sustainability extends beyond EVs.
efficiency. We are also working to reduce our carbon footprint
by implementing sustainable practices throughout
• Alternate method for curing being looked into for our operations. We believe that by doing so, we
reducing the water consumption. can help preserve the planet for future generations
while also improving our bottom line.
• Coal fired boiler reliability is improved and the hot
standby of FO boiler has been kept cold standby to 6. Increased focus on enabling technologies like
reduce the FO consumption in Chennai. sensor technology and advanced material
development: We recognize that such enabling
B) TECHNOLOGY ABSORPTION: technologies can have a significant impact on our
products' performance and functionality and hence,
(i) Efforts made towards Technology absorption we are increasing our focus on these areas and
investing in research and development to ensure
Our Company's commitment to technology and that we stay at the forefront of these technologies.
innovation is critical to our goal of achieving product
leadership and maintaining our technology readiness. Our Company is pleased to share with you all the
We have consistently focused on investing in research recent achievements and recognition received by our
and development to ensure long-term success, and we Research and Development function. These awards are
are proud to share our progress on several key initiatives. testaments to the hard work, dedication and excellence
of our team members.
1. Consistent focus on investments in R&D and product
excellence for the long term: We believe that investing 1. Best Supplier award from Volvo Eicher Commercial
in R&D is essential to stay ahead of the competition, Vehicles for Tyre sourcing & development: This
and we have consistently prioritized this area of award recognizes our team's efforts in providing
our business. Our team of experts is continuously high-quality tyres for commercial vehicles that
researching new technologies and innovations that meet the stringent requirements of Volvo Eicher
can be applied to our products to improve their Commercial Vehicles. Our team's commitment to
performance and functionality. We are committed product excellence and customer satisfaction has
to delivering high-quality products that meet our helped us secure this prestigious award.
customers' needs and exceed their expectations.
2. Best Supplier Award in Delivery from Daimler
2. New product launches and range extension: We have India Commercial Vehicles Pvt. Ltd. for COVID-19
launched several new products over the past year and Delivery Support, Meeting revised GCC norms,
plan to continue this trend in the future. We understand Support for Export Model Supply: Our team's
that customers want a wide range of options to choose agility, flexibility and responsiveness in managing
from, and we aim to meet this demand by expanding the challenges posed by the COVID-19 pandemic
our product range. Our focus on innovation and and the revised GCC norms have been instrumental
technology means that we can develop products that in securing this award. Our team's dedication to
are both innovative and performing, ensuring that our supporting our customers' needs has helped us earn
customers get the best of both worlds. this recognition.

3. Focus on EV's: As the world moves towards a more 3. Platinum Award from CATERPILLAR India for
sustainable future, we are committed to doing meeting the high standards set by Caterpillar
our part. One of the ways, we are doing this is on Product Quality, Product Documentation &
by focusing on electric vehicle tyres. We believe Delivery performance (Supplier Quality Excellence
that EVs are the future of transportation and are Process): Our team's focus on product quality,
investing heavily in this area. We have already documentation and delivery has helped us earn this
launched several EV tyres and plan to continue recognition.
developing new platforms like borne EV tyres in the
years to come. 4. IRCO Medal from International Rubber Conference
Organization for Exceptional achievements
4. Help manufacturing improve cost competitiveness: and contributions to the knowledge and
We understand that cost competitiveness is crucial understanding of Rubber Science and Technology
for success in any industry. That's why we are across the world: This award recognizes our team's
working closely with our manufacturing plants outstanding contributions to the field of rubber
to help them improve their processes and reduce science and technology. Our team's expertise
costs. By doing so, we can ensure that our products and innovation have helped us make a significant
are priced competitively while maintaining impact in this area, and we are honoured to receive
high quality. this prestigious award.

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5. Young achiever's award to our scientist by Science Kerala, SRM Institute, Chennai, VIT, Chennai, MIT-
and Engineering Research Board (SERB) and Anna University, Chennai, B.S. Abdur Rahman Crescent
Department of Science & Technology, Government Institute of Science & technology, Chennai, Kamaraj
of India: This award recognizes the outstanding college of engineering and technology, Madurai. This
contribution of our scientist in developing readily helped our Company in open innovation, fundamental
adoptable technology that benefits the industry and advanced research on materials, processing,
and the environment. Our team's dedication to characterization techniques, simulation (process
innovation and sustainability has helped us earn & materials) to develop winning products for the
this recognition. automobile market.

In conclusion, these awards are testaments to our team's Moreover, our collaborations have facilitated
commitment to excellence, innovation, and customer knowledge transfer, helping us leverage the expertise of
satisfaction. We are proud of these achievements and our academic and industry partners. These partnerships
will continue to strive for excellence in all areas of our have resulted in joint training programs, internships, and
research and development function. recruitment, providing us with access to highly skilled
talent and helping us develop our workforce. Apollo’s
Industry - University Collaborations: long term high value training programme (Technical
Leadership Development Programme), which involves
We are excited to share with you our ongoing
professors from universities and experts from various
collaborations with major universities across the
technology domains, helps the Company to develop
globe, which have been instrumental in our success
breed of scientists, who are future ready.
in technology development. These partnerships have
enabled us to access cutting-edge research, advanced Material Sustainability:
testing facilities, and world-class talent, accelerating
our innovation and product development efforts. Apollo As a responsible organization, we recognize the
continues to be a member with Centire research centre importance of material sustainability in our operations
of Virginia Tech., USA, which provides access to many and products. Material sustainability refers to the
new avenues in research. responsible sourcing, use, and disposal of materials
throughout their life cycle, from extraction to disposal.
Our collaborations with various global universities The following are some of the initiatives carried out that
have been instrumental in advancing our research in are critical for our business:
tyre technology, providing us with access to the latest
research findings and talent in these fields. These 1. Awareness Programs (Internal and External)
collaborations have also resulted in joint publications,
patents, and research grants, enhancing our credibility • An informative session regarding various
and reputation in these areas. aspects of sustainability in the tire industry
was conducted throughout all the plants.
Industry-University collaboration is an essential
partnership that brings together academia and • Our Company has secured ISO 20400
industry to work towards common goals. This certification for Sustainable Procurement,
collaborative research has numerous benefits for both making us the first Company in the Indian
parties, including fundamental research, development automotive sector to achieve this.
of innovative technologies, knowledge transfer, talent
• Workshop is being conducted for the rubber
acquisition etc. Industry partners can bring valuable
grower and supplier to facilitate them in
insights into real-world problems, while academic
understanding the guidelines of GPSNR and
researchers can provide scientific expertise and
Company sustainability aspects.
resources. Sharing facilities and equipment can be a
result of such collaboration which brings major benefit 2. Sustainability Target Publications
for both the parties involved. Industry partners can
gain access to state-of-the-art research facilities • Our Company has proclaimed its intention
and equipment of universities, while universities can to develop products with 40% sustainable
leverage industry expertise to better understand how materials across all product groups by 2030.
to apply their research in real-world settings. Finally,
• We are also committed to achieving the
technology transfer is another key aspect of industry-
ambitious target of becoming first Indian tyre
university collaboration.
manufacturer to be carbon-neutral tyre by
Our R&D has collaboration with premium universities 2050.
and institutes across the globe which includes Dresden,
3. Material Research
Germany, Centire research centre of Virginia Tech.,
USA, Sussex university, UK, IIT Kharagpur, IIT Madras, • Our Company has formed a partnership with
BITS Pilani, Goa, M.G University, Kerala, CUSAT, Tyromer Inc. based in Canada, to investigate

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the application of advanced recycling analytical instruments are installed to develop method
technology to create and use new and highly to characterize smart materials for tyre application.
sustainable rubber from ELTs. Two patents were applied pertaining to innovative
material and process of synthesizing the same. Two
• The Sustainability function in R&D has taken Papers were published in international journals.
initiative to develop an in-house research
facility with advanced instrumentation Compounding:
capability to enhance quality of recycled
materials. We are excited to share with you our Company's focus
on Compounding on the following areas:
• We are exploring a significant initiative
with a reputable foreign collaborator to 1. Growing focus on the EV segment poses new
transform ELTs into nearly prime rubber via challenges in terms of fuel efficiency and durability.
environmentally friendly technology. Keeping this in mind, the PV Compounding team
has developed and industrialized tread compounds
4. Material Development in adherence to the CAFÉ norms and high wet/dry
grip requirements.
• The team is collaborating with Raw materials
and Purchase departments to proactively 2. In Two-wheelers, a sustainable tread compound
engage in the exploration of novel substitutes with improved mileage and cost competitiveness
for existing raw materials which are not for the commuter segment was developed and
environmentally friendly. industrialized in 20 sizes. New product for the
adventure touring application demands a highly
• The team is collaborating closely on the durable tread compound with no compromise
development of rubber compounds having on traction and wear for different terrains. This
improved sustainability index, which will be challenging target was met with the development
used in all product categories. of a new generation tread compound with highly
functionalized polymers, dual filler systems and
5. Prototype and Material Conservation Program
high-performance resins.
• A prototype of the agricultural tyre was
3. The Introduction of new generation SSBRs, new
developed with 75% sustainable materials. An
grades of silica and advanced dispersing aids has
extensive testing has been initiated to assess
pushed our compound portfolio a notch higher
the functional efficiency and capability of this
in terms of performance with no compromise on
tyre.
processability. In TBR category, a new generation
• To support the light weighting of tyres while tread compound for LD 2.0 tyre was developed to
maintaining their performance, an initiative meet the requirements of superior mileage and cut
has been launched to redesign tyres for -chip resistance. This was achieved through use of
different product categories. tri-blend polymer system, carbon coupling agent,
dual filler system and an optimized cure package.
• To align with the Company's sustainability
objectives, a technical level discussion carried 4. MMT technology: Development of compounds
out among ATMA members and government at the top and mid layer-compound meeting the
representatives to address the shortcoming contradictory requirements of mileage, RRC and
associated with newly notified EPR guidelines. cut-chip resistance for regional applications.

Raw materials: 5. Radial tyres for mining applications: This

requirement posed challenges in terms of the high
Collaborative work with universities and supplier of chipping resistance and mileage requirements.
Raw materials used across the tyre manufacturing The targets were achieved through use of a NR/
secures the competitive advantage for our Company synthetic rubber blend, blend of high reinforcement
and increases the engagement in knowledge, expertise, blacks and performance resins.
and resource sharing to make better products. As
part of sustainability journey, we are in the process of 6. Applications for severe off-road conditions in Brazil
developing sustainable materials (Recycled rubber, demanded a high chipping resistance compound.
recovered carbonaceous filler, Rice husk silica, Bio oil, Bio This was achieved through use of performance
monomer based synthetic rubber and reinforcements) resins, synthetic rubber blend with high filler loading
as a replacement for existing materials. New generation of high reinforcement.
reinforcing materials for improved tyre performance and
7. Bias tyres segment: The development of new tread
weight reduction are developed. New filler technology is
compound with high abrasion resistance, low RR
developed to improve the rubber filler interaction that
and high chipping resistance for the new range of
can enhance performance of tyre. Highly sophisticated

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LCV tyres-Vihaan marked a significant achievement Process Technology Development:

for the team.
Our R&D has a renewed focus on Process Technology
Predevelopment & Simulation: Development (PTD) and we believe investing in this
area is critical to driving innovation and maintaining a
Predevelopment & Simulation function of R&D competitive edge in the market.
has continued its work in further improving rolling
resistance for passenger car and radial commercial PTD focus areas are:
vehicle tyres. New tyre simulation tool was developed
to understand the tyre behaviour and predict the 1. Mixing time reduction for soft compound using
compound characteristics required thereby shortening tandem mixing system.
the time required for new compound development. The
2. Smooth processing of high tack (High Resin)
team is working with new generation reinforcements
compounds at mixer using Roll coating.
which will support in light weighing of tyres without
compromising on tyre performance. A lot of progress 3. Increase Steel Textile calendar output by increasing
has been made to make the tyre quieter in passenger speed and input stock width.
car using Metamaterials and Foam technology. A
new simulation methodology has been developed to 4. Reduction of tyre weight by thinner technical layer
predict the rumble noise and thereby help in reducing using Electron Beam Radiation.
the development cycle time for OEMs. Technology
5. Establishment of Very high turn up (Envelop)
for puncture resistance in passenger and 2W tyre has
construction system in Uni stage tyre building
been developed, work in progress towards making it
machine.
sustainable technology. Simulation team is working
on new methodology to virtually predict tyre wear 6. Reduction of PCR tyre cure cycle and improve RRC
for different vehicle configurations, load and road by Mould steam boosting and Split cure set up.
conditions. Vehicle dynamics team has developed a
new capability to process test data from advanced 7. Reduction of mould warm up time by fast and
indoor test machines for generating various tyre models controlled steam boosting.
catering to OEM requirements.
8. Improve tyre cure level uniformity by using Real
Advanced Engineering: time input based Smart Cure system.

Advanced Engineering has developed TPMS and RFID 9. Indigenous cost-effective process development for
technologies for tyre health monitoring and digital Foam application in PCR tyres.
identification of tyres which can potentially support
evolving business models. Our continued investment in Intellectual Property:
the technology absorption is a key strategic priority for We are pleased to report that our Intellectual Property
our organization. As we look back on the past year, we (IP) function has been instrumental in protecting and
are proud of the progress we have made in absorbing driving the success of our business. Our IP function is
new technologies and integrating them into our responsible for identifying, protecting, and leveraging
operations. our intellectual property assets to enhance our
Design: competitive advantage and create long-term value for
our stakeholders.
Focussing on the pillar of digitalization, new age
technologies are used to gain valuable insight into The following are some of the key achievements of our
customer preferences and behaviours during new IP function:
product development. We believe that even today, 1. 28 patent applications were filed in FY23.
aesthetics is an area which is not fully tapped and can
be a potential differentiator for a performance product 2. Total 200+ active patents across geographies.
like tyre. Aesthetics being very much subjective and
emotionally connected, the “Eye tracking” process 3. 12 design registrations filed in FY23.
established by Design Studio team at Apollo R&D Asia
4. A total of 210+ design registrations across
has proven to be extremely effective over the normal
geographies.
VOC capturing techniques. It has helped to decode
consumer responses to different designs, textures, and Our IP function has fostered a culture of innovation
other aesthetic elements of a tyre. The insights are within our organization by encouraging our employees
used in new product designs to increase the overall to identify and protect their innovations. This has led
engagement of customer with the product, ultimately to the creation of new intellectual property assets and
converting it to a purchase decision. enhanced our product development capabilities.

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(ii) Benefits derived like product improvement, performance were undertaken as part of the
cost reduction, product development or organization's commitment to sustainability.
import substitution 11. Durability enhancement done for two product lines
Our Company has emerged as a leader in the passenger to meet the rural application as a part of “Go Rural”
car segment in India. Our commitment to innovation, journey.
quality, and customer satisfaction has enabled us to
TBR:
capture a significant share of the Indian car market and
establish ourselves as a leading brand in the country. TBR segment retained its leadership in the market with
the result of following factors:
Our success in the passenger car segment is the result of
several factors, including: 1. The New Product Development and innovations
in process technology have further helped gain
1. In the home market, the Company maintained
market share in the challenging steer tyre segment
the leadership position in the passenger car tyre
with optimised footprint with uniform pressure
category through various projects for product
distribution.
improvement, value engineering and product
innovation. 2. New tread architecture enhanced the durability of
tyres by containing the heat build-up in the shoulder
2. Part of EV Journey launched “Amperion” range of
in mixed segment tyres for high temperature
products developed for the Electrical Vehicles with
markets.
unique technologies AQuTTech and BEST Tech for
reducing noise and enhancing the battery range 3. Apollo tyres expanded all steel radial products in
respectively. The Amperion Product Line is catering mining and defence, leading radialization in these
to popular EVs in the market. segments.

3. Achieved the recognition of First Indian Tyre Brand 4. Apollo’s all steel radial tyres are fully compliant with
to get fuel savings label with 5-STAR RATING the new regulation notified by government of India
for Passenger Car Tyre Category by Bureau of and completed all necessary certification leading
Energy Efficiency (BEE). “Amperion” bagged the Indian tyre industry towards the Global regulatory
prestigious 5 Star rating after evaluation as per the compliance.
new regulations.
5. Apollo tyres becomes the first in CV segment to
4. The Vredestein Pinza AT product line launched for be approved for 5 Star Label for fuel efficiency
the Premium Luxury SUV category now has 19 sizes. as per Bureau of Energy Efficiency Tyre labelling
programme. The all range of radial Tube type Light
5. As part of EV and Premiumization journey,
Truck tyres are in the 4 Star/ 5 Star band.
benchmarked existing product lines in Global Arena
against the EV tyres from Global players in Europe, 6. In line with the commitment to reducing material
Korea, and Japanese markets. Established as a usage, Apollo has developed Light weight carcass
preferred partner for EV Journey of all major OEMs. technology and launched Light weight range of
products for Export and Domestic markets.
6. Secured Approval in BMW’s prestigious 5, 7 series
and working on more models including EV variant. 7. With the launch of linehaul and 24.5” SKUs meeting
Smartway norms, Apollo has completed the product
7. Secured approval in 5 Electric Vehicles and Secured
basket for US market.
nominations for most of the BEV platforms in both
CSUV and SUV category. 8. Supplies of Made in India TBR tyres to off-shore
Global OEMs – IVECO in Brazil and PACCAR in US
8. In UHP category, Aspire 4G+ is the upgraded with
added glory to our Global OE business.
20% improved Rolling Resistance. The Altrust Grip
product range, which was created for the AMA 9. Nitrogen curing technology in TBR has been adopted
region, now includes ten more SKUs. in Hungary and Chinnapanduru Plants envisaging
the sustainability and smooth operations in future.
9. Foam Technology capability established in
Chinnapanduru plant for OE supplies. Sealant 2 – Wheeler:
Technology is also ready and further work is on to
make sealant technology more sustainable. Our Company has successfully developed and launched
the “Tramplr” tyres series focusing on Enduro Off-
10. Continuously working on various projects on Road and Enduro street tyres for the premium Indian
sustainability, like the use of recyclable materials motorcycle segment ranging from 150 cc to 500 cc. The
and weight reduction without sacrificing tyre

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Tramplr range tyres will cater to various motorcycle Truck Bus Bias:
segments such as Sport Touring, Adventure Touring,
Cruisers and Street Sports and those are all constitutes Our success in the Truck Bus Bias segment is the result of
20% of the overall motorcycle market in India. The following factors:
“Tramplr” range comes in 2 patterns, Apollo “Tramplr
1. Launch of Vihaan tyres in LCV category with the
XR” which is a Steel belted radial technology and having
USP of high wear resistant tread compound for
70:30 Enduro On/Off-Road tyres for Adventure touring
superior mileage, unmatched durability with heat
and Apollo “Tramplr ST” which is an 80:20 Enduro street
ageing resistant technology and best in class
tyre for Dual sport capabilities.
Retreadability.
1. The Apollo “Tramplr XR” range will cater to the likes
2. Launch of Pick-up category tyres with re-engineered
of Royal Enfield Classics, Yamaha FZ series, Suzuki
and robust bead area design to overcome bead
Gixxer & Intruder, KTM series, Bajaj Dominar and
related failures which is a common customer pain
BMW G310R. In addition to that, the Apollo Tramplr
point in this category.
XR tyres feature imprints the adventure-loaded
locations on the sidewall of the tyres. 3. TERRA MT tyres launched with specially designed
tread pattern which offers very good traction
2. The Apollo “Tramplr ST” tyres are inspired by the
at severe under foot conditions and Specially
street culture of biking and the sidewall is imprinted
designed Durable casing with highly advanced
with the graffiti art and the range will cater to the
engineering materials which provides superior life
likes of motorcycles such as Bajaj Pulsar, TVS Apache
and concussion free tyre in mining application.
Series, Yamaha Fazer and MT15. Requirements of
TERRA tyres provide high up time and maximise the
these bikes are superior grip and low rolling noise
vehicle output.
while being stable at high speeds. Trample ST series
of tyres perfectly support the above requirements OHT:
in all weather conditions with their big central
blocks and wide footprint area. Our Company has successfully established following
technologies:
3. Before the launch of these tyres and due to import
restrictions, the customers used to wait for months, 1. Establishment of Steel breaker technology in Farm
which led to high demand for these tyres, which was Front Bias segment: Impact & Puncture Resistance
the opportunity we seized with these tyres to gain (IPR) technology.
business. These tyres got positive feedback and
2. Establishment High Traction Puddling Special
accepted well not only in the Indian market, but
Product: FX-333 series – Gravity Fall technology.
also in other countries like South Africa, Thailand
and even Gulf countries. 3. Establishment of Next Gen. All Rounder product
in Agri Drive Bias segment: VIRAT R1: Mono-Arc
The Company also focuses on the optimization of
Double-Grip technology.
sustainable materials usage. The Company has even
planned to extend “Centauro” to the “Adventure” Testing:
segment in Vredestein brand which suites for High end
Adventure Motorcycles with On/Off-road usage. The Testing is a critical component of our product
Company has also strategized to cover all ranges of new development process. Our commitment to testing
vehicles not only in the premium segment of High-end reflects our dedication to delivering high-quality,
Motorcycles, but also in the Premium Scooter segments. reliable products that meet the needs of our customers.

On OEM front, the Company has bagged the approval The following are few of the key aspects of our testing
of a major player in the segment, “Royal Enfield” for program:
which the supply is going on, thanks to the successful
development of a specific tyre, “Continental 650”, a 1. With the inauguration of the advanced Tyre Test
tailor-made tyre for meeting the performance needs of Centre at Chennai in December 2022, the state-of-
a vehicle. Additionally, Company is keenly working with the-art tyre characterisation capability has become
Royal Enfield, KTM, BMW on other category of tyres a technology nerve centre for the tyre development
including conventional fitment. engineers & scientists.

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2. The new facility hosts a series of advanced testing d) If not fully absorbed, areas where absorption
equipment. The new generation Flat-Trac machine has not taken place and reasons, therefore – The
and the High-speed-uniformity with Anechoic present technology is based on our own R&D efforts.
chamber are the most prominent ones among
them. Objective measurement of handling & NVH (iv)Expenditure incurred on Research and
parameters at real life situations and its in-house Development
correlation with tyre characteristics helps to (₹ Million)
accelerate development cycle. Also, Apollo became
a) Capital 541.76
fully self-reliant on generation of tyre models that
b) Deferred Revenue Expenditure 0.00
go as input for full vehicle simulations at OEM to
c) Revenue 1,404.11
marry tyres to vehicles.
d) Total 1,945.87
3. Unique combination of High-Speed Uniformity e) Total R&D expenditure as a % turnover 1.15%
machine with an Anechoic chamber helps to
seamlessly measure both vibration and noise C) FOREIGN EXCHANGE EARNINGS AND OUTGO
behavior of tyres. The Gleneagles Road shells on
(₹ Million)
the machine facilitate the noise excitation as
experienced on typical road surfaces. (i) Foreign Exchange Earnings
On account of direct - export sales 24,817.58
With the new testing facility at Apollo, outdoor from Apollo Tyres Ltd (FOB value)
iterations are considerably reduced, which helps us to On account of royalty from Foreign 85.28
fast develop tyres in line with OEM/ Replacement and Subsidiary Companies
new market needs. On account of Cross Charge of 438.85
Management Expenses from
In conclusion, we are committed to technology and
Foreign Subsidiary Companies
innovation and believe that these areas are critical
to our success. We will continue to invest in R&D and On account of Reimbursement of 598.96
product excellence, develop new products, focus on Expenses from Foreign Subsidiary
EVs, help manufacturing improve cost competitiveness, Companies
support sustainability initiatives, and increase our focus (ii) Foreign Exchange outgo (other 4,248.01
on enabling technologies. By doing so, we are confident than CIF value of imports)
that we will maintain our product leadership and remain
a technology-ready Company for years to come.

(iii)In case of imported technology (imported

during last 3 years reckoned from the
beginning of the financial year)
a) Details of technology imported- No Technology
was imported during this financial year.
For and on behalf of the Board of Directors
b) Year of import- Not Applicable.

c) Whether the technology been fully absorbed- ONKAR KANWAR

We are focusing on the development of our own Place : Amsterdam Chairman
technology through in house R&D efforts. Date : May 9, 2023 DIN: 00058921

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Annexure V

CORPORATE GOVERNANCE REPORT

Apollo Tyres’ governance framework enjoins the highest (a) Transparency by classifying and explaining the
standards of ethical and responsible conduct of business Company's policies and actions to those towards
to create value for all stakeholders. It continues to focus whom it has responsibilities, including its employees.
on good corporate governance in line with emerging local This implies the maximum possible disclosures
and global standards. It understands and respects its without hampering the interests of the Company
fiduciary role in the corporate world. Besides adhering and those of its stakeholders. The Company
to the prescribed corporate governance practices as per believes in promotion of ethical values and setting
Regulation 4(2) read with Chapter IV of the SEBI (Listing up exemplary standards of ethical behaviour in our
Obligations and Disclosure Requirements) Regulations, 2015 conduct towards our business partners, colleagues,
('Listing Regulations'), the Company voluntarily governs shareholders and general public;
itself as per highest standards of ethical and responsible
conduct of business in all facets of its operations and in all (b) Accountability is a key pillar, where there cannot be
interactions with its stakeholders including shareholders, a compromise in any aspect of accountability and
employees, consumers, lenders and the community at large. full responsibility, even as the management pursues
profitable growth for the Company;
The prime focus of Companies Act, 2013 (the 'Act'), is on
shareholders’ democracy, higher transparency and more (c) Professionalism ensures that management teams
disclosures, E-Governance, investor protection/minority at all levels are qualified for their positions, have a
shareholders and on Professionals’ enhanced role & clear understanding of their roles and are capable
accountability. The current Annual Report of your Company of exercising their own judgment, keeping in view
contains all the information and disclosures which are the Company's interests, without being subject
required to be given under Companies Act, 2013 / Listing to undue influence from any external or internal
Regulations. pressures;

This report, along with the report on Management (d) Trusteeship brings into focus the fiduciary role of
Discussion and Analysis and additional shareholders the management to align and direct the actions
information provides the details of implementation of the of the organisation towards creating wealth and
corporate governance code by your Company as contained shareholder’s value in the Company’s quest to
in the Listing Regulations. establish a global network, while abiding with
global norms and cultures;

1. CORPORATE GOVERNANCE PHILOSOPHY (e) As part of Corporate Responsibility, the

Company believes in working towards sustainable
At Apollo Tyres Ltd ('Apollo'), corporate governance development - environmental and social. Though
brings direction and control to the affairs of the the journey on sustainability is recent, it is already
Company in a fashion that ensures optimum return a key pillar in its next five year growth journey;
for stakeholders. Corporate governance is the broad
framework which defines the way the Company (f) Safeguarding integrity ensures independent
functions and interacts with its environment. It is in verification and truthful presentation of the
compliance with laws and regulations in each of the Company's financial position. For this purpose, the
markets the Company operates, leading to effective Company has also constituted an Audit Committee
management of the organisation. Moreover, Apollo which pays particular attention to the financial
in its journey towards sustainability is integrating management process;
sustainability practices in its corporate governance
(g) Continuous focus on training and development
system which goes beyond compliance.
of employees and workers to achieve the overall
The Company is guided by a key set of values for all its corporate objectives while ensuring employee
internal and external interactions. integration across national boundaries.

Simultaneously, in keeping with the best practices, Your Company is open, accessible and consistent with its
your Company seeks to execute the practices of communication. Apollo Tyres shares a long term perspective
corporate governance by maintaining strong business and firmly believes that good corporate governance
fundamentals and by delivering high performance practices underscore its drive towards competitive strength
through relentless focus on the following: and sustained performance. Thus, overall corporate

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governance norms have been institutionalised as an SEPARATE POST OF CHAIRMAN &

enabling and facilitating business process at the Board, MANAGING DIRECTOR
Management and at all operational levels.
The Chairman of the Board is a Non-Executive Non-
Independent Director & therefore the positions of the
2. BOARD OF DIRECTORS Chairman and Managing Director are held by separate
At Apollo, we believe that an active, well-informed individuals.
and independent Board is necessary to ensure highest
Profile of the Chairman: As the Chairman of Apollo
standards of Corporate Governance. The Board of
Tyres Ltd, Mr. Onkar Kanwar is the chief architect of the
Directors of Apollo Tyres, being at the core of its
Company’s vision and value-driven business strategy.
Corporate Governance practice, plays the most pivotal
Under his able leadership, Apollo became a professionally
role in overseeing how the management serves and
managed and a globally recognised tyre manufacturer.
protects the long term interests of all our stakeholders.
As a visionary entrepreneur, he plays a critical role in the
Apollo’s Board consists of eminent individuals representing articulation of Company’s business philosophy.
a judicious mix of professionalism, knowledge and
Modernisation, excellence and quality are his guiding
experience. The Directors bring in expertise in the fields of
principles. Registered in 1972, Apollo Tyres under
strategy, management, human resource development,
his guidance transformed itself from an Indian
legal, finance and economics, amongst others. The Board
manufacturer of commercial vehicle tyres, to a global
provides leadership, strategic guidance, objective and
entity with a full-fledged product portfolio, spanning 3
independent view to the Company’s management while
continents. Mr. Onkar Kanwar is highly regarded for his
discharging its fiduciary responsibilities, thereby ensuring
constant emphasis on bettering the lives of people, be it
that the management adheres to high standards of
employees, customers, business partners, shareholders
ethics, transparency and disclosure.
or any other stakeholder and responsiveness to change
COMPOSITION OF BOARD and continuous learning.

The Board comprises of an optimum combination of He is the Past President of the Federation of Indian
Executive and Non-Executive Directors as required under Chambers of Commerce and Industry (FICCI) and a
the Act and the Listing Regulations. As on the date of former Chairman of the Automotive Tyre Manufacturers’
the report, the Company’s Board of Directors consists Association and was a Member of the Board of Governors
of 15 Directors, 2 of which are Executive Directors, 8 for the Indian Institute of Management (Kozhikode).
are Non-Executive Independent Directors (including Currently, he is the Chairman of BRICS Business Council,
2 Women Directors) and 5 are Non-Executive Non- India.
Independent Directors, who are leading professionals in Mr. Onkar Kanwar has a keen interest in the field of
their respective fields. education and health care. Artemis Medicare Services
Ltd, promoted by him, is an enterprise focusing on
Composition of Board of Directors state-of-the-art medical care and runs a cutting edge
multi-specialty medical facility which focuses on holistic
treatment. An initiative close to his heart is Apollo Tyres'
54% 13% HIV-AIDS awareness and prevention programme for the
commercial vehicle driver community, implemented
through Apollo Tyres Foundation's Health Care centres
located in large transshipment hubs across India.

33% A Science and Administration graduate from the University

of California, Mr. Onkar Kanwar is a widely travelled
individual. He devotes a large part of his time in reading
and is passionate about learning modern management
Executive Non-Executive
practices and their successful application in business.
Directors Non-Independent
Directors He has been conferred with ‘Ernst & Young Entrepreneur
Non-Executive of the Year Award –Manufacturing’ for the year 2012.
Independent Directors He has recently been awarded with Hungarian ‘Order of
Merit’, and Government of Japan’s ‘Order of Rising Sun,
The Board reviews its strength and composition from Gold and Silver Star’.
time to time to ensure that it remains aligned with the Profile of the Vice Chairman & Managing Director: As
statutory as well as business requirements. the Vice Chairman & Managing Director of Apollo Tyres,
Mr. Neeraj Kanwar plays a pivotal role in Apollo’s journey
towards becoming one of the most admired automotive

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tyre brands. Mr. Neeraj Kanwar has pioneered key Mr. Neeraj Kanwar is a people-centric leader and
initiatives in enhancing the competitiveness of the believes in empowering employees to undertake
Company’s operations and products across the Board. effective and efficient decisions at all times. Within
He is responsible for crafting Apollo’s growth story taking Apollo Tyres, he is known for his affable management
the Company from US$450 million to US$3 billion. Under style, and combine work with liberal doses of fun.
his able leadership, the Company expanded its global
footprints by acquiring Dunlop Tyres International in An engineering graduate from Lehigh University in
South Africa and Zimbabwe, Vredestein Banden B V in Pennsylvania, USA, Mr. Neeraj Kanwar is an avid
the Netherlands and setting up of a Greenfield Facility sportsperson. He prefers to spend his leisure time with
in Hungary, thereby transforming itself into a multi- his family or playing tennis, swimming and travelling.
geography Company with operations across the globe.
CERTIFICATE FROM PRACTICING COMPANY
The Company also started Greenfield plant in India.
SECRETARY
Mr. Neeraj Kanwar began his career with Apollo Tyres
The Company has received a certificate from M/s. PI &
as Manager, Product & Strategic Planning, where he
Associates, Practicing Company Secretaries, confirming
played a crucial role in creating a bridge between the
that none of the Directors on the Board of the Company
two key functions of manufacturing and marketing.
have been debarred or disqualified from being appointed
In 1998, he joined the Board of Directors and was
or continuing as Directors of Companies by the Board/
promoted to Chief, Manufacturing and Strategic
Ministry of Corporate Affairs or any such authority.
Planning. His people management skills helped him
bring overarching changes in Industrial Relations, The Certificate is attached as Annexure A to the
upgradation of technology and benchmarking on Corporate Governance Report.
product and efficiency parameters.
DIRECTOR’S DIRECTORSHIPS/COMMITTEE
In 2002, he took over as the Chief Operating Officer
MEMBERSHIPS
of the organisation, wherein he introduced value-
driven process improvements in Human Resources In terms of Regulation 26 of the Listing Regulations,
and Information Technology. Mr. Neeraj Kanwar was none of the Directors of your Company is a member
appointed as Joint Managing Director in 2006, elevated of more than 10 (Ten) Committees or is the Chairman
to Vice Chairman in 2008 and soon after to Managing of more than 5 (Five) Committees across all the public
Director in 2009 for his initiatives in establishing the limited companies (listed or not) in which he/ she is a
Company in the global arena. Director excluding private limited companies, foreign
companies, high value debt listed companies and
As a business leader, Mr. Neeraj Kanwar is associated
companies under Section 8 of the Act.
with leading industry associations and was recently
the Chairman of the Automotive Tyre Manufacturer’s
Association, India.

No Director of the Company serves as an Independent Director in more than 7 (Seven) listed Companies and in case
he/she is serving as a Whole-Time Director in any listed Company, does not hold the position of Independent Director
in more than 3 (Three) listed Companies. Further, all Directors have informed about their Directorships, Committee
Memberships/ Chairmanships including any changes in their positions. Relevant details of the Board of Directors and
their Directorship(s)/ Committee Membership(s)/ Chairmanship(s), as on March 31, 2023 are provided below:

Executive/ No. of positions held in other

Companies Name of other listed entities in which
Name/Designation of Non-
Director holds Directorship and
Director(s) Executive/ Committee(2)
Board(1) category of Directorship
Independent Member Chairperson
Mr. Onkar Kanwar Promoter 3 - 1 - PTL Enterprises Ltd.
Chairman – Non - (Non-Executive Non-Independent)
(DIN: 00058921) Executive - Artemis Medicare Services Ltd.
(Non-Executive Non -Independent)
Mr. Neeraj Kanwar Executive 2 3 - - PTL Enterprises Ltd.
Vice Chairman & (Non-Executive Non-Independent)
Managing Director - Artemis Medicare Services Ltd.
(DIN: 00058951) (Non-Executive Non -Independent)
Mr. Satish Sharma Executive - - - None
Whole-time Director
(DIN:07527148)

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Executive/ No. of positions held in other

Companies Name of other listed entities in which
Name/Designation of Non-
Director holds Directorship and
Director(s) Executive/ Committee(2)
Board(1) category of Directorship
Independent Member Chairperson
Mr. Akshay Chudasama Non-Executive 1 1 - - Bata India Ltd.
(DIN: 0010630) Independent (Non-Executive Independent)

Gen. Bikram Singh (Retd.) Non-Executive - - - None

(DIN: 07259060) Independent
Mr. Francesco Crispino Non-Executive - - - None
(DIN: 00935998) Independent
Ms. Pallavi Shroff Non-Executive 5 5 1 - One 97 Communications Ltd.
(DIN: 00013580) Independent (Non-Executive Independent)
- Asian Paints Ltd.
(Non-Executive Independent)
- InterGlobe Aviation Ltd.
(Non-Executive Independent)
- PVR Ltd.
(Non-Executive Independent)
Ms. Lakshmi Puri Non-Executive - - - None
(DIN:09329003) Independent
Mr. Vikram S. Mehta Non-Executive 6 6 1 - Colgate Palmolive (I) Ltd.
(DIN:00041197) Independent (Non-Executive Independent)
- Mahindra & Mahindra Ltd.
(Non-Executive Independent)
- Larsen & Toubro Ltd.
(Non-Executive Independent)
- Jubilant Foodworks Ltd.
(Non-Executive Independent)
- InterGlobe Aviation Limited
(Non-Executive Independent)
Mr. Vinod Rai Non-Executive 5 - - - Kalyan Jewellers (India) Limited
(DIN:00041867) Independent (Non-Executive Independent)
Dr. Jaimini Bhagwati Non-Executive 2 1 - - IDFC First Bank Ltd.
(DIN:07274047) Independent (Non-Executive Non -Independent)
- IDFC Ltd.
(Non-Executive Independent)
Mr. Francesco Gori Non-Executive - - - None
(DIN: 07413105) Non-
Independent
Mr. Robert Steinmetz Non-Executive - - - None
(DIN:00178792) Non-
Independent
Mr. Sunam Sarkar Non-Executive - - - None
(DIN:00058859) Non-
Independent
Mr. Vishal Mahadevia Non-Executive 1 - - - IDFC First Bank Ltd.
(DIN:01035771) Non- (Non-Executive Non -Independent)
Independent
(1)
This includes Directorships held in Public Ltd. Companies and Subsidiaries of Public Ltd. Companies and excludes Directorships in Private Ltd. Companies,
Section 8 Companies and Overseas Companies.
(2)
For the purpose of Committees of Board of Directors, only Audit and Stakeholders’ Relationship Committees in other Public Ltd. Companies and Subsidiaries
of Public Ltd. Companies are considered.

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 Apollo Tyres Ltd
Annual Report 2022-23

Notes: them to make effective contributions to the Board and

its Committees.
1. Mr. Onkar Kanwar continues as the Non-Executive
Director designated as Chairman w.e.f. February 1, The following skills / expertise / competencies have been
2023. identified/ available with the Board for the effective
functioning of the Company:
2. Dr. Jaimini Bhagwati was appointed as an
Independent Director for a period of 5 years w.e.f. • Leadership / Operational experience.
February 2, 2023.
• Legal Expertise.
3. There are no inter-se relationships between the
• Expertise in Strategy, Human Resource
Board members except Mr. Onkar Kanwar and
Development and Administration.
Mr. Neeraj Kanwar being father and son.
• Building effective Sales and Marketing strategies.
4. Ms. Pallavi Shroff and Mr. Akshay Chudasama are
Managing Partners of M/s. Shardul Amarchand • Expertise in International Tyre Business and
Mangaldas & Co., Solicitors and Advocates on Technical Operations.
record, to whom the Company has paid fees of ₹ 9.90
million during FY23 for professional advice rendered • Expertise in sourcing of Raw Materials, IT and
by the firm in which they are interested. The Board Business Operations.
has determined that such payment in the context
of overall expenditure by the Company is not • Expertise in Auditing, Banking, Finance, Economics
significant and does not affect their independence. and Corporate Governance.

• Expertise in Manufacturing, Projects and R&D.

CORE SKILLS /EXPERTISE/ COMPETENCIES
AVAILABLE WITH THE BOARD • Expertise in Investment Banking and Private Equity
Investments.
The Board comprises of qualified members who possess
required skills, expertise and competencies that allow

While all the Board members possess the skills identified, their area of core expertise is given below:

Sl.
Name of Director Expertise/ Skills
No.
1. Mr. Onkar Kanwar Leadership/ Operational experience, expert in Strategy, Tyre Business and
Management.
2. Mr. Neeraj Kanwar Leadership/ Operational experience, expert in Strategy, Tyre Business and
Management.
3. Mr. Akshay Chudasama A lawyer, specialized in Mergers and Acquisitions, Joint Ventures, Cross Border
Investments, Private Equity etc.
4. Gen. Bikram Singh (Retd.) Former Chief of Indian Army and an expert in Administration and Strategy.
5. Mr. Francesco Gori Expert in the field of International Strategy, Product Development & Management,
Sales and Marketing.
6. Mr. Francesco Crispino Expert in the field of Investment Banking and Corporate Law.
7. Dr. Jaimini Bhagwati Expert in Economics, Foreign Policy, Regulatory Environment and Strategic Planning.
8. Ms. Lakshmi Puri Expert in Economics, Foreign Affairs and International Trade and Development.
9. Ms. Pallavi Shroff A lawyer, with an expertise in Ad-hoc Arbitrations and Institutional Arbitrations and
handling Legal Disputes.
10. Mr. Robert Steinmetz Expert in International Tyre Business and Technical Operations.
11. Mr. Sunam Sarkar Expert in sourcing of Raw Materials, HR, IT, Sustainability, Business Operations and
Corporate Strategy.
12. Mr. Satish Sharma Expert in the field of key functions like Manufacturing, Sales and Marketing, Projects
and R&D.
13. Mr. Vikram S. Mehta Expert in the field of Sales, Marketing, Strategy and Management.
14. Mr. Vinod Rai Ex-Comptroller and Auditor General of India, Expert in Audit, Banking, Finance and
Corporate Governance.
15. Mr. Vishal Mahadevia Expert in the field on Finance, Economics and Private Equity Investments.

184
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Overview Leadership Report Discussion and Analysis Reports Statements

INDEPENDENT DIRECTORS and Independent Directors to discuss the issues and

concerns, if any.
All Independent Directors have confirmed that they
meet the conditions of independence specified in Familiarisation Programme for Independent Directors
Section 149 of the Act and Regulation 16(b) of the Listing
The Company has adopted a familiarisation programme
Regulations. Further, in terms of Regulation 25(8), the
for Independent Directors with an objective of making
Independent Directors have also confirmed that they
the Independent Directors of the Company accustomed
are not aware of any circumstance or situation, which
with the business and operations of the Company
exist or may be reasonably anticipated, that could
through various structured oriented programmes. The
impair or impact their ability to discharge their duties
familiarisation programme also intends to update the
with an objective independent judgment and without
Directors on a regular basis on any significant changes
any external influence. All such declarations are placed
therein so as to be in a position to take well informed
before the Board for information. Basis this, the Board
and timely decision.
is of the opinion that the independent directors fulfill
the conditions specified in Listing Regulations and are The details of familiarisation programme imparted to
independent of the management. Independent Directors during FY23 are available on
the website of the Company. The weblink is https://
Pursuant to a notification dated October 22, 2019,
corporate.apollotyres.com/content/dam/orbit/
issued by the Ministry of Corporate Affairs (MCA),
apollo-corporate/investors/corporate-governance/
all the Independent Directors, are registered with the
others/others/Details%20of%20familiarisation%20
Independent Directors Databank maintained by Indian
programme%20FY23.pdf
Institute of Corporate Affairs.

A formal letter of appointment to Independent BOARD FUNCTIONING & PROCEDURE

Directors as provided in Act has been issued and the Apollo Tyres’ Board is committed to ensure good
same is available in Investors section on website of governance through a style of functioning that is self-
the Company viz. https://corporate.apollotyres.com/ governing. The members of the Board always have
investors/directors-information/#?activeTab=Directo complete liberty to express their opinion and decisions
rs_Info are taken on the basis of consensus arrived at after
During the year, the Board of Directors based on detailed discussions. They are also free to bring up any
the recommendations made by the Nomination & matter for discussion at the Board Meetings.
Remuneration Committee had appointed Dr. Jaimini Apollo Tyres’ Board meets at least once in every quarter
Bhagwati as an Independent Director with effect to discuss and review the quarterly results and other
from February 2, 2023 and shareholders approval for items of agenda, including the information required
appointment as an Independent Director was received to be placed before the Board, as required under
on March 31, 2023. Regulation 17(7) read with Part A, Schedule II of the
Meeting of Independent Directors Listing Regulations and additional meetings are held
as and when required. The meeting dates are usually
As required under Regulation 25(3) of the Listing finalized well before the beginning of the year. The
Regulations, a separate meeting of the Independent Chairman/Vice Chairman of the Board, Chief Financial
Directors without the presence of Non-Independent Officer and the Company Secretary discuss the items
Directors or representatives of management was held to be included in the agenda and the detailed agenda,
on March 30, 2023. The Independent Directors at the management reports and other explanatory statements
meeting, inter alia, reviewed the following:- are circulated well in advance of the meeting. Senior
Management officials are called to provide additional
• Performance of Non-Independent Directors and inputs on the matters being discussed by the Board/
Board as a whole; Committee. Overseas operating subsidiaries are
represented through President of respective regions
• Performance of the Chairman of the Company,
who make detailed presentations about working of
taking into account the views of Executive Directors
their respective Companies.
and Non-Executive Directors;
Paperless Board Meetings
• Assessed the quality, quantity and timeliness
of flow of information between the Company With a view to leverage technology and reducing paper
management and the Board that was necessary consumption, the Company has adopted a web-based
for the Board to effectively and reasonably perform application for transmitting Board/Committee Agenda.
their duties. The Directors of the Company receive the Agenda in
electronic form through this application, which can be
In addition to formal meetings, interactions outside the
accessed through Browsers or iPads. The application
Board Meetings also take place between the Chairman

185
 Apollo Tyres Ltd
Annual Report 2022-23

meets high standards of security and integrity that capital spent, business/financial justification and
is required for storage and transmission of Board/ time frame (as and when required).
Committee Agenda in electronic form.
• Sales Forecast, Margin outlook etc. (on quarterly
Post Meeting follow up procedure basis).

The Board has an effective post meeting follow up • Banking facilities and its utilization (on quarterly
procedure. Items arising out of previous Board Meeting basis).
and their follow up action report are placed at the • Review of Material Events and Transactions (on
immediately succeeding meeting for information of the quarterly basis).
Board.
• Global growth plans (as and when required).
Information placed before the Board of Directors
• Codes and Policies (as and when required).
The Board has complete access to all the information
available within the Company. The following information, • Investment in Subsidiary Companies & providing
inter alia, is provided periodically by the management guarantee etc. (as and when required).
to the Board for its review: • Update on statutory compliance requirements and
implementation process (as and when required).
• Quarterly/Half yearly/Yearly financial results
(consolidated & standalone) and items arising out of • Details on Labour Relations covering the Plants (on
Annual Accounts. quarterly basis).

• Proceedings of various Committees of the Board • Statement of all significant transactions and
(on quarterly basis). arrangements entered into by the Subsidiary
Companies (on quarterly basis).
• Minutes of the Subsidiaries (on quarterly basis).
• Noting of Report on Health & Safety (on quarterly
• Internal/External Audit findings & recommendations
basis).
(on quarterly basis).
• Disclosure of interest/ declaration of independence/
• Information on recruitment/ remuneration of
declaration u/s 164 received from Directors
senior officers just below Board level including
(on Annual Basis).
appointment or removal of Chief Financial Officer
and Company Secretary. • Fixation of Statutory Responsibilities/ Grant of
Power of Attorney (as and required).
• Report on Share Capital Audit (on quarterly basis).
• Operation of Bank Accounts (as and required).
• Secretarial Audit Report (on Annual basis).
• Re-appointment of Secretarial Auditor (on Annual
• Related Parties Transactions (on quarterly basis).
Basis).
• Information on Cost Audit (on Annual basis).
• Group Organogram (on Quarterly Basis).
• Compliance certificates on applicable laws of ATL &
• Details on Dividend (on Annual Basis).
its Subsidiaries (on quarterly basis).
• Details on Issue and Listing of Commercial paper
• Compliance Reports, Investors Complaints,
(as and when required).
Corporate Governance, Transfer/ Transmission/
Demat of shares (on quarterly basis). • Presentation on repayment schedule & financial
covenants (as and when required).
• Foreign Exchange exposure & steps taken to limit
the risk (on quarterly basis). • Presentation on HR processes related to Gender
Diversity (as and when required).
• Material legal cases (on quarterly basis).
• Presentation on CSR projects empowering women
• Investment/deployment of funds & borrowings (on
(as and when required).
quarterly basis).
• Issue of NCDs on a Private Placement Basis (as and
• Annual Report (on Annual basis).
when required).
• Capital and Revenue Budgets (on Annual basis).
• Grant of Donation (as and when required).
• Overall business scenario, operations of the
• Capacity Expansion (as and when required).
Company (on quarterly basis).
• Presentation on Sustainability (as and when
• Growth & Expansion plans at various operations,
required).

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Overview Leadership Report Discussion and Analysis Reports Statements

The Chairman, Vice Chairman, CFO and Company Secretary keep the members of the Board informed about any material
development/business update through various modes viz. emails, letters, telecon etc. from time to time.

The Board periodically reviews the compliance report of the laws applicable to the Company as well as steps taken by the
Company to rectify the instances of non-compliance, if any.

Details of Board Meetings & Board attendance

During FY23, 5 (Five) Board Meetings were held on May 12, 2022, August 12, 2022, November 14, 2022, February 2, 2023
and March 28, 2023. The gap between any two meetings never exceeded 120 days as per the requirements of Regulation
17(2) of the Listing Regulations.

The attendance of the Directors at the Board meetings and the Annual General Meeting of the Company held during
FY23, is as follows:

No. of Board Meetings

Executive/
Name/Designation of held/attended during Attendance
Non-Executive/
Director tenure of the Director at last AGM
Independent
Held Attended
Mr. Onkar Kanwar, Chairman Promoter and Non-Executive 5 5 Yes
Mr. Neeraj Kanwar, Executive 5 5 Yes
Vice Chairman & Managing Director
Mr. Satish Sharma, Executive 5 5 Yes
Whole-time Director
Mr. Akshay Chudasama Non-Executive Independent 5 3 Yes
Gen. Bikram Singh (Retd.) Non-Executive Independent 5 5 Yes
Mr. Francesco Crispino Non-Executive Independent 5 4 Yes
Ms. Lakshmi Puri Non-Executive Independent 5 5 Yes
Ms. Pallavi Shroff Non-Executive Independent 5 3 Yes
Mr. Vikram S. Mehta Non-Executive Independent 5 5 Yes
Mr. Vinod Rai Non-Executive Independent 5 5 Yes
Dr. Jaimini Bhagwati* Non-Executive Independent 2 2 NA
Mr. Francesco Gori Non-Executive Non- Independent 5 5 Yes
Mr. Robert Steinmetz Non-Executive Non-Independent 5 5 Yes
Mr. Sunam Sarkar Non-Executive Non-Independent 5 5 Yes
Mr. Vishal Mahadevia Non-Executive Non-Independent 5 5 Yes

*Dr. Jaimini Bhagwati was appointed as an Independent Director for a period of 5 years w.e.f. February 2, 2023.

3. BOARD COMMITTEES Composition, Meetings and Attendance

In compliance with the statutory requirements, the The powers, role and terms of reference of the Audit
Board has constituted various Committees with specific Committee cover the areas as contemplated under
terms of reference and scope. The objective is to focus Regulation 18 of Listing Regulations and Section 177 of
on specific areas and make informed decisions within the Act.
the authority delegated to each of the Committee. All As on March 31, 2023, Audit Committee comprised
decisions and recommendations of the Committees are of 4 (Four) members, 3 (Three) being Non-Executive
placed before the Board for its information or approval. Independent Directors and 1 (One) being Non-Executive
Non-Independent Director. Mr. Vinod Rai, Non-
During FY23, the Board has accepted all the
Executive Independent Director, acts as the Chairman
recommendations of the Committees.
of the Committee. All the members are financially
literate and possess the requisite financial/ business
AUDIT COMMITTEE
acumen to specifically look into the internal controls
The primary objective of the Audit Committee is and audit procedures. Members have discussions with
to monitor and provide effective supervision of the the Statutory Auditors during the meetings of the
Management’s financial reporting process with a view Committee and the quarterly/ half-yearly and annual
to ensuring accurate and timely disclosures, with the audited financials of the Company are reviewed by the
highest levels of transparency, integrity and quality of Audit Committee before consideration and approval
by the Board of Directors. The Committee also reviews
financial reporting.
Internal Control Systems and IT systems.

187
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Annual Report 2022-23

During FY23, 4 (Four) Audit Committee Meetings were held on May 11, 2022, August 11, 2022, November 10, 2022 and
February 1, 2023.

The composition of the Committee and attendance of members at the Committee meetings held during FY23, are given
below:

No. of meetings held during

Name of Director Designation Category of Director his / her tenure and attended
Held Attended
Mr. Vinod Rai Chairman Non- Executive Independent 4 4
Mr. Akshay Chudasama Member Non- Executive Independent 4 4
Ms. Pallavi Shroff Member Non- Executive Independent 4 3
Mr. Robert Steinmetz Member Non- Executive Non-Independent 4 4

In addition to the members of the Audit Committee, in the Board’s report in terms of clause (c) of sub-
these meetings are attended by Vice Chairman & section (3) of Section 134 of the Companies Act,
Managing Director, President (APMEA) & Whole-time 2013;
Director, Chief Financial Officer, President (Europe),
Group Head (Corporate Accounts & Taxation), Group • Reviewing changes, if any, in accounting policies
Head (New Market & Channels), Internal Auditor, and practices and reasons for the same;
Cost Auditor and Statutory Auditor of the Company, • Reviewing major accounting entries involving
wherever necessary, and those executives of the estimates based on the exercise of judgment by
Company who were considered necessary for providing management;
inputs to the Committee.
• Reviewing significant adjustments made in the
The Committee also invites other Directors who are not financial statements arising out of audit findings;
members of the Committee, to attend the meeting as
invitees as and when required. • Reviewing compliance with listing and other legal
requirements relating to financial statements;
The Company Secretary acts as Secretary of the
Committee. • Reviewing disclosure of any related party
transactions;
The Chairman of the Audit Committee, Mr. Vinod Rai,
• Reviewing modified opinion(s) in the draft audit
was present at the Annual General Meeting of the
report;
Company held on July 11, 2022.
• Reviewing with the management, the quarterly
Brief description of the Terms of Reference
financial statements before submission to the
As per Regulation 18(3) read with Part C of Schedule II Board for approval;
of the Listing Regulations and Section 177 of the Act, the • Reviewing with the management, the statement of
Audit Committee has been entrusted with the following uses/ application of funds raised through an issue
responsibilities:- (public issue, right issue, preferential issue etc.), the
statement of funds utilized for purposes other than
• Oversight of the Company’s financial reporting
those stated in the offer document/prospectus/notice
process and the disclosure of its financial
and the report submitted by the monitoring agency,
information to ensure that the financial statement
monitoring the utilization of proceeds of a public or
is correct, sufficient and credible;
rights issue or preferential issue or qualified institutions
• Recommendation for appointment, remuneration placement, and making appropriate recommendations
and terms of appointment of auditors of the to the Board to take up steps in this matter;
Company;
• Reviewing and monitoring the auditor’s
• Approval of payment to statutory auditors for any independence and performance, and effectiveness
other services rendered by the statutory auditors; of audit process;

• Reviewing with the management, the annual • Approval or any subsequent modification of
financial statements and auditor's report thereon transactions of the Company with related parties;
before submission to the Board for approval; • Scrutiny of inter-corporate loans and investments;
• Reviewing matters required to be included in the • Valuation of undertakings or assets of the Company,
Director’s Responsibility Statement to be included wherever it is necessary;

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Overview Leadership Report Discussion and Analysis Reports Statements

• Evaluation of internal financial controls and risk • Review of statement of deviations, if any:-
management systems;
a) Quarterly statement of deviation(s) including
• Reviewing, with the management, performance of report of monitoring agency, if applicable,
statutory and internal auditors, adequacy of the submitted to stock exchange(s) in terms of
internal control systems; Regulation 32(1).

• Reviewing the adequacy of internal audit function, b) Annual statement of funds utilized for purposes
if any, including the structure of the internal audit other than those stated in the offer document/
department, staffing and seniority of the official prospectus/notice in terms of Regulation 32(7).
heading the department, reporting structure
coverage and frequency of internal audit; The Chairman of the Audit Committee has confirmed
to the Board that the Audit Committee during the year
• Discussion with internal auditors of any significant under review has complied with all the roles assigned to
findings and follow up thereon; it pursuant to the Act and Listing Regulations.

• Reviewing the findings of any internal investigations Role of Internal Auditor

by the internal auditors into matters where there
is suspected fraud or irregularity or a failure of The Company has a well-established and independent
internal control systems of a material nature and Internal Audit function which provides assurance to the
reporting the matter to the Board; management on design and operating effectiveness
of internal controls and systems as well as suggest
• Discussion with statutory auditors before the audit improvements to systems and processes. Internal
commences, about the nature and scope of audit as Audit assesses and promotes strong ethics and values
well as post-audit discussion to ascertain any area within the organisation and facilitates maintaining
of concern; and monitoring of the internal control environment.
Internal Audit responsibilities encompass all locations,
• To look into the reasons for substantial defaults in operating entities and geographies of the Company, in
the payment to the depositors, debenture holders, which all aspect of business, viz. operational, financial,
shareholders (in case of non-payment of declared information systems and regulatory compliances, are
dividends) and creditors; reviewed periodically.
• Review of the functioning of Whistle Blower The scope and authority of the Internal Auditor is
Mechanism; defined in the Internal Audit Charter. The Internal
Audit has a well laid down internal audit methodology,
• Approval of appointment of Chief Financial Officer
which emphasis on risk based internal audits using data
after assessing the qualifications, experience and
analytics. The Internal Auditor prepares a rolling annual
background etc. of the candidate;
internal audit plan, comprising of operational, financial,
• Review of investments made by the unlisted compliance and information systems audits, covering
Subsidiary; all the locations, operations and geographies of the
Company. The audit plan for the year is reviewed and
• Reviewing the utilisation of loans and/ or advances approved by the Audit Committee at the beginning of
from/ investment by the Holding Company in the each financial year.
Subsidiary exceeding ₹100 Crore or 10% of the asset
size of the Subsidiary, whichever is lower including The Internal Auditor reports to both, the Chairman and
existing loans/ advances/ investments; the Audit Committee of the Company. On quarterly
basis, the Internal Auditor reports to the Audit
• Consider and comment on rationale, cost-benefits Committee, the key internal audit findings, action plan
and impact of schemes involving merger, demerger, agreed with the management, the status of audits
amalgamation etc., on the Company and its vis-à-vis the approved annual audit plan and status of
shareholders; open audit issues. Direct reporting to the Chairman and
the Audit Committee, establishes Internal Audit as a
• Review of Management Discussion and Analysis of
function independent from the business.
financial condition and results of operations;
Subsidiary Companies
• Review of management letters/ letters of internal
control weaknesses issued by the statutory The Company does not have any material non-listed
auditors; Indian Subsidiary Company. However, the Company
has 5 material non-listed overseas Subsidiaries.
• Review of internal audit reports relating to internal
control weaknesses and the appointment, removal
and terms of remuneration of the internal auditor;

189
 Apollo Tyres Ltd
Annual Report 2022-23

In terms of Listing Regulations following are the details of material subsidiaries:

Details of Incorporation Details of Statutory Auditors

Sl.
Name of Material Subsidiary Date of
No. Date Place Name
Appointment
1 Apollo Tyres (NL) B.V. March 16, Netherlands Ernst & Young Accountants June 28, 2022
2005 LLP
2 Apollo Tyres Cooperatief U.A. May 1, Netherlands No requirement for NA
2009 appointment of auditors as
per local laws
3 Apollo Tyres Holdings September Singapore HLB Atrede LLP September 6,
(Singapore) Pte Ltd. 9, 2010 2016
4 Apollo Tyres (Europe) B.V. February, Netherlands Ernst & Young Accountants June 28, 2022
21, 2012 LLP
5 Apollo Tyres (Hungary) Kft. June 4, Hungary Ernst & Young Könyvvizsgáló July 14, 2022
2014 Korlátolt Felelősségű
Társaság

The Audit Committee of the Company reviews the NOMINATION AND REMUNERATION
financial statements, in particular the investments COMMITTEE
made by all unlisted overseas Subsidiary Companies.
Significant issues pertaining to Subsidiary Companies Composition, Meeting and Attendance
are also discussed at Audit Committee meetings. A
summarised statement of important matters reflecting The composition of the Committee meets the
all significant transactions and arrangements entered requirements of Section 178 of the Act and the Listing
into by the Subsidiary Companies, included in the Regulations. As on March 31, 2023, the Nomination
minutes of the above overseas Subsidiary Companies and Remuneration Committee comprised of 3 (Three)
are placed before the Board of Directors of the Company members, all of whom are Non-Executive Independent
and are duly noted by it. The performance of all its Directors. Mr. Vinod Rai, Non-Executive Independent
Subsidiaries is also reviewed by the Board periodically. Director is the Chairman of the Committee.

The Company has a Policy for determining material The Nomination and Remuneration Committee has
Subsidiaries and the same is available on website of devised a policy on Board diversity in terms with the
the Company. Refer link: https://corporate.apollotyres. requirement under Regulation 19 of Listing Regulations.
com/investors/corporate-governance/ During FY23, 3 (Three) Nomination and Remuneration
Committee Meetings were held on May 11, 2022, May
27, 2022 and February 1, 2023.

The composition of the Committee and attendance of members at the Committee meetings held during FY23, are
given below:

No. of meetings held during

Name of Director Designation Category of Director his / her tenure and attended
Held Attended
Mr. Vinod Rai Chairman Non- Executive Independent 3 3
Mr. Akshay Chudasama Member Non- Executive Independent 3 3
Ms. Pallavi Shroff Member Non- Executive Independent 3 1

The Company Secretary acts as the Secretary of the Brief description of the Terms of Reference
Committee.
The Nomination and Remuneration Committee has been
The Chairman of the Audit Committee, Mr. Vinod Rai, entrusted with the responsibilities to review and grant
was present at the Annual General Meeting of the annual increments, vary and/ or modify the terms and
Company held on July 11, 2022. conditions of appointment/ re-appointment including

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Overview Leadership Report Discussion and Analysis Reports Statements

remuneration and perquisites, commission etc. payable • To decide whether to extend or continue the term
to Managing Directors within the overall ceiling of of appointment of the Independent Director, on the
remuneration as approved by the members. Following basis of the report of performance evaluation of
are the terms of reference pursuant to Section 178 of the Independent Directors.
Act & Regulation 19(4) read with Part D of Schedule II of
Listing Regulations:- • Recommend to the Board, all remuneration, in
whatever form, payable to Senior Management.
• Formulation of the criteria for determining
qualifications, positive attributes and independence Performance evaluation
of a Director and recommend to the Board a policy,
The Company has devised a policy for performance
relating to the remuneration of the Directors, Key
evaluation of Independent Directors, Board, Committees
Managerial Personnel and Other Employees.
and other individual Directors which includes criteria for
• For every appointment of an Independent Director, performance evaluation of the Non-Executive Directors
to evaluate the balance of skills, knowledge and and Executive Directors.
experience on the Board and on the basis of such
For annual performance evaluation, the Company has
evaluation, prepare a description of the role and
formulated a questionnaire to assist in evaluation of the
capabilities required of an Independent Director.
performance based on criteria such as value addition
The person recommended to the Board for
to discussions and decisions, attendance in Board
appointment as an Independent Director shall have
Meetings, effective contribution to Board Meetings etc.
the capabilities identified in such description. For
Every Director has to give rating for each question on
the purpose of identifying suitable candidates, the
the scale of 1 to 5, 1 being Unacceptable and 5 being
Committee may:
Exceptionally Good. On the basis of the response to
(i) use the services of an external agencies, if the questionnaire, a matrix reflecting the ratings was
required; formulated.

(ii) consider candidates from a wide range of Policy for appointment and remuneration
backgrounds, having due regard to diversity;
In terms of Section 178 of the Companies Act, 2013
and
and Regulation 19 of Listing Regulations, this policy
(iii) consider the time commitments of the on nomination and remuneration of Directors, Key
candidates. Managerial Personnel (KMP), Senior Management and
other employees of the Company has been formulated
• Formulation of criteria for evaluation of by the Nomination and Remuneration Committee of
performance of Independent Directors and the the Company and approved by the Board of Directors.
Board of Directors. The salient features of the aforesaid policy is given as
below:
• Devising a policy on diversity of Board of Directors.
(a) Criteria for Appointment of Director and Senior
• Identifying persons who are qualified to become Management
Directors and who may be appointed in Senior
Management in accordance with the criteria The Committee shall consider the following factors
laid down and recommend to the Board their for identifying the persons who are qualified to
appointment and removal. becoming Director and who can be appointed in
Senior Management:
• To see that the level and composition of
remuneration is reasonable and sufficient to (i) The Committee shall identify and ascertain
attract, retain and motivate Directors of the quality the integrity, qualification, expertise and
required to run the Company successfully. experience of the person for appointment as
Director or at Senior Management level and
• To see that the relationship of remuneration recommend to the Board his/ her appointment.
to performance is clear and meets appropriate
performance benchmarks. (ii) A person should possess an adequate
qualification, expertise and experience for the
• To see that remuneration to Directors, Key position he/she is considered for appointment.
Managerial Personnel and Senior Management The Committee has discretion to decide
involves a balance between fixed and incentive whether qualification, expertise and experience
pay reflecting short and long-term performance possessed by a person are sufficient/
objectives appropriate to the working of the satisfactory for the concerned position.
Company and its goals.

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 Apollo Tyres Ltd
Annual Report 2022-23

(iii) An Independent Director shall possess (i) Directors are to demonstrate integrity,
appropriate skills, experience and knowledge in credibility, trustworthiness, ability to handle
one or more fields of finance, law, management, conflict constructively and the willingness to
sales, marketing, administration, research, address issues proactively.
corporate governance, technical operations
or other disciplines related to the Company’s (ii) Actively update their knowledge and skills
business. with the latest developments in the Tyre/
Automobile industry, market conditions and
(iv) The Company may appoint or continue the applicable legal provisions.
employment of any person as Whole-time
Director who has attained the age of seventy (iii) Willingness to devote sufficient time and
years subject to the approval of shareholders attention to the Company’s business and
by passing a special resolution. The explanatory discharge their responsibilities.
statement annexed to the notice for such
(iv) To assist in bringing independent judgment to
motion shall indicate the justification for
bear on the Board’s deliberations especially
appointing such person.
on issues of strategy, performance, risk
(v) The Company should ensure that the person so management, resources, key appointments
appointed as Director/ Independent Director/ and standards of conduct.
Senior Management Personnel shall not be
(v) Ability to develop a good working relationship
disqualified under the Companies Act, 2013,
with other Board members and contribute to
rules made thereunder, or any other enactment
the Board's working relationship with the senior
for the time being in force.
management of the Company.
(vi) The Director/ Independent Director/ Senior
(vi) To act within their authority, assist in protecting
Management Personnel shall be appointed
the legitimate interests of the Company, its
as per the procedure laid down under the
shareholders and employees.
provisions of the Companies Act, 2013, rules
made thereunder, or under Listing Regulations, Criteria for determining Independence:
or any other enactment for the time being in
force. The Independent Director shall qualify the criteria
of independence mentioned in Section 149(6) of the
(vii) Independent Director shall meet all criteria Companies Act, 2013 and rules related thereto and
specified in Section 149(6) of the Companies in Regulation 16(b) & 25 of Listing Regulations.
Act, 2013 and rules made thereunder and/
or as specified in Regulation 25 of Listing (c) Remuneration of Directors, Key Managerial Personnel
Regulations. (KMP) and Other Employees

The term “Senior Management” means the officers At the appointment or re-appointment of Managing
and personnel of the Company who are members Director, Whole-time Director and KMPs, the
of its core management team excluding Board of Committee will recommend to the Board for their
Directors comprising all members of management approval, the remuneration to be paid to them. The
one level below Chief Executive Officer/ Managing remuneration to be paid to the Senior Management
Director/ Whole-time Director (including Chief Personnel shall be approved by the Board and to other
Executive Officer and Manager, in case they are not employees shall be as per HR policy of the Company.
part of the Board of Directors) and shall specifically
The annual increment of remuneration for
include the functional heads, by whatever name
Managing Director/ Whole-time Director shall be
called and the Company Secretary and the Chief
made on the basis of the resolution approved by
Financial Officer.
the shareholders. The annual increment in Salary of
The Nomination and Remuneration Committee shall KMP (other than Managing Director/ Whole-time
have discretion to consider and fix any other criteria or Director), Senior Management Personnel shall be
norms for selection of the most suitable candidate(s). recommended by the Committee to the Board. The
annual increment in Salary for all other employees
(b) Criteria for Determining Positive Attributes & shall be made as per HR policy of the Company.
Independence of Directors
The level and composition of remuneration as
Criteria for determining positive attributes: determined by the Committee shall be reasonable
and sufficient to attract, retain and motivate
The Committee shall consider the following factors
Directors, Key Managerial Personnel and Senior
for determining positive attributes of Directors
Management of the quality required to run the
(including Independent Directors):
Company successfully.

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The relationship of remuneration to performance (d) Remuneration to Non-Executive Directors

should be clear and meet appropriate performance
benchmarks. The remuneration should also involve a Sitting Fees:
balance between fixed and incentive pay reflecting
The Non-Executive including Independent Directors
short and long-term performance objectives
may receive remuneration by way of fees for
appropriate to the working of the Company and
attending meetings of Board or Committee thereof
its goals.
provided that the amount of such fees shall not
(i) General exceed Rupees One lakh per meeting of the Board
or Committee. The quantum of sitting fees will
Nomination and Remuneration Committee shall be determined as per the recommendation of
recommend to the Board for its approval, the Nomination and Remuneration Committee and
remuneration, including the commission based on approved by the Board of Directors of the Company.
the net profits of the Company for the Directors. Further, the boarding and lodging expenses shall be
The remuneration shall be subject to the prior/ post reimbursed to the Directors.
approval of the shareholders of the Company.
Commission:
(ii) Remuneration to Whole-time/ Managing Director
The profit-linked Commission shall be paid within the
Fixed pay: monetary limit approved by the Board/Shareholders
of the Company subject to the same not exceeding
The Whole-time Director/ Managing Director 1% of the net profits of the Company computed as
shall be eligible for remuneration as may be per the applicable provisions of the Act.
approved by the shareholders of the Company on
the recommendation of the Committee and the Stock Options:
Board of Directors. The break-up of the pay scale,
performance bonus and quantum of perquisites Pursuant to the provisions of the Act, an
including employer’s contribution to P.F, pension Independent Director shall not be entitled to any
scheme, medical expenses, club fees etc. shall stock option of the Company. Only such employees
be decided and approved by the Board on the of the Company and its Subsidiaries as approved by
recommendation of the Committee and shall be the Nomination and Remuneration Committee will
within the overall remuneration approved by the be granted ESOPs.
shareholders.
Criteria of making payments to Non- Executive
Minimum Remuneration: Directors is disseminated on the website and same
can be viewed at: https://corporate.apollotyres.
If, in any financial year, the Company has no profits com/investors/corporate-governance/
or its profits are inadequate, the Company shall pay
remuneration to its Whole-time Director/Managing (e) Remuneration to KMP, Senior Management
Director, in accordance with the provisions of the Personnel and Other Employees
Companies Act, 2013.
The KMP, Senior Management Personnel and other
Provisions for excess remuneration: employees of the Company shall be paid monthly
remuneration as per the Company’s HR policies
If any Whole-time Director draws or receives, and/or as may be approved by the Committee.
directly or indirectly by way of remuneration any The break-up of the pay scale and quantum of
such sums in excess of the limits prescribed under perquisites including, employer’s contribution to
the Act or without the approval required under P.F, pension scheme, medical expenses, club fees
the Act, he/ she shall refund such sums to the etc. shall be as per the Company’s HR policies.
Company, within two years or such lesser period
as may be allowed by the Company and until such The annual variable pay of managers is linked to
sum is refunded, hold it in trust for the Company. the performance of the Company in general and
The Company shall not waive recovery of such sum their individual performance for the relevant year
refundable to it unless approved by the Company measured against Company’s objectives fixed in the
by special resolution within two years from the date beginning of the year.
the sum becomes refundable.
This Remuneration Policy shall apply to all future/
continuing employment/ engagement(s) with the
Company. In other respects, the Remuneration
Policy shall be of guidance for the Board.

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 Apollo Tyres Ltd
Annual Report 2022-23

REMUNERATION TO DIRECTORS
The details of remuneration paid/ to be paid to Directors for FY23 are given below:

(i) Executive Directors

(₹ Million)
Mr. Onkar Mr. Neeraj Kanwar, Mr. Satish Sharma,
Particulars Kanwar, Vice-Chairman & Whole-time
Chairman* Managing Director Director
Salary 37.50 39.48 31.83
Contribution to PF/ Superannuation/ Gratuity 11.93 12.56 10.12
Commission/ Performance Bonus 165.15 176.75 23.08
Perquisites 56.01 55.33 34.67
Total Remuneration 270.59 284.12 99.70
Stock Option N.A. N.A. N.A.
Service contracts, notice period, severance fees None
As per Section 198 of the Companies Act, 2013, Net Profit of the Company is amounting to ₹ 8,822.07 million.
* Mr. Onkar Kanwar continues as the Non-Executive Director designated as Chairman w.e.f. February 1, 2023. Hence, the remuneration is
for 10 months only.

Disclosure pursuant to Section 197 (12) of the The increase is mainly due to payment of higher
Companies Act, 2013 read with Rule 5 (1) of the commission linked to sharp rise in profits in
Companies (Appointment and Remuneration of FY23. However, the remuneration of Mr. Onkar
Managerial Personnel) Rules, 2014 as amended: Kanwar and Mr. Neeraj Kanwar has decreased
considerably by 36% and 23% respectively
1) Managing Director(s)/Whole-time Director when compared with FY21.
are entitled to performance linked incentive in
the form of commission/ bonus, as a variable The percentage increase in the remuneration
component, as approved by the members. of Mr. Satish Sharma for FY23 is 11% over the
previous financial year.
2) The ratio of remuneration of each Director to
the median remuneration of the employees The percentage increase in the remuneration of
of the Company for FY23 is as follows: Mr. Gaurav Kumar, Chief Financial Officer is 9%
Mr. Onkar Kanwar - 226 (calculated on the basis during FY23 over the previous financial year.
of aggregate of remuneration as Executive
Director for 10 months and Non-Executive The percentage increase in the remuneration of
Director for 2 months), Mr. Neeraj Kanwar - 237 Ms. Seema Thapar, Company Secretary is 1%
and Mr. Satish Sharma – 83. during FY23 over the previous financial year.

3) The percentage increase in the remuneration of The amount of total commission provided to
Mr. Onkar Kanwar and Mr. Neeraj Kanwar for Non-Executive Directors in FY23 is ₹50 million
FY23 is 94% and 132% respectively over FY22. against ₹38 million paid in the FY22.

The ratios of remuneration of Non-Executive Directors to median remuneration of employees are as under:

% increase in
Ratio to median
Remuneration for remuneration
Name of Director remuneration of
FY23 (₹Million) (commission)
employees
during FY23
Mr. Akshay Chudasama 5.36 25 4.47
Gen. Bikram Singh (Retd.) 5.36 25 4.47
Mr. Francesco Gori 5.36 25 4.47
Ms. Lakshmi Puri* 5.36 NA 4.47
Ms. Pallavi Shroff 5.36 25 4.47
Mr. Robert Steinmetz 5.36 25 4.47
Mr. Sunam Sarkar 5.36 25 4.47

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Overview Leadership Report Discussion and Analysis Reports Statements

% increase in
Ratio to median
Remuneration for remuneration
Name of Director remuneration of
FY23 (₹Million) (commission)
employees
during FY23
Mr. Vikram S. Mehta 5.36 25 4.47
Mr. Vinod Rai 5.36 25 4.47
Dr. Jaimini Bhagwati** 0.85 NA NA

*Ms. Lakshmi Puri was appointed as an Independent Director w.e.f. October 29, 2021 and since comparable remuneration is not available
therefore percentage increase in remuneration is not applicable.
**Dr. Jaimini Bhagwati was appointed as an Independent Director w.e.f. February 2, 2023 and since comparable remuneration is not available
therefore percentage increase in remuneration and ratio to median remuneration to the employees are not applicable.

4) The percentage increase in the median remuneration of employees is 9.49%.

5) The total number of employees of the Company as on March 31, 2023 was 16,090 out of which 7,835 were
permanent employees on the rolls of the Company.

6) The average percentage decrease in the salaries of employees other than the managerial personnel is 3% in FY23
over FY22. The average decrease in the remuneration of the employees other than the Managerial Personnel is
due to reduction in numbers of permanent employees.

7) Remuneration paid to the Directors is in accordance with the remuneration policy of the Company.

ii) Non-Executive Directors:

Sitting fees and commission paid/ to be paid to the Non-Executive Directors for FY23 is as follows:

Commission No. of Shares held

Sitting fee
Name of Director provided for FY23 as on March 31,
(₹ Million)
(₹ Million)4 2023
Mr. Onkar Kanwar1 0.13 0.87 100,000
Mr. Akshay Chudasama 0.56 5.36 -
Gen. Bikram Singh (Retd.) 0.34 5.36 -
Mr. Francesco Gori 0.37 5.36 -
Mr. Francesco Crispino2 NIL NIL -
Ms. Lakshmi Puri 0.31 5.36
Ms. Pallavi Shroff 0.36 5.36 -
Mr. Robert Steinmetz 0.57 5.36 -
Mr. Sunam Sarkar 0.52 5.36 -
Mr. Vikram S. Mehta 0.40 5.36 6,000
Mr. Vinod Rai 0.60 5.36 -
Mr. Vishal Mahadevia2 NIL NIL -
Dr. Jaimini Bhagwati3 0.13 0.85 -

Notes:

1. Mr. Onkar Kanwar continues as the Non-Executive Director designated as Chairman w.e.f. February 1, 2023.

2. Mr. Francesco Crispino and Mr. Vishal Mahadevia, Directors had surrendered the sitting fees and commission
payable to them as Non-Executive Directors during the year.

3. Dr. Jaimini Bhagwati was appointed as an Independent Director for a period of 5 years w.e.f. February 2, 2023.

4. The commission is paid and disbursed, amongst the Non-Executive Directors of the Company equally in
proportion to their tenure of Directorship for the financial year ended March 31, 2023.

5. No convertible instruments of the Company were outstanding as on March 31, 2023.

6. Save as otherwise provided in this report, apart from receiving Director’s Remuneration, none of the Non-
Executive Directors has any pecuniary relationships or transactions vis-a-vis the Company.

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 Apollo Tyres Ltd
Annual Report 2022-23

Directors and Officers Liability Insurance (D&O)

As per the provisions of the Act, the Company has taken a Directors and Officers Liability Insurance (D&O) on behalf of
all Directors including Independent Directors, Officers, Managers and Employees of the Company and its Subsidiaries
for indemnifying any of them against any liability in respect of any negligence, default, misfeasance, breach of duty or
breach of trust for which they may be guilty in relation to the Company.

STAKEHOLDERS RELATIONSHIP COMMITTEE

In compliance with requirements of the Listing Regulations and provisions of Section 178 of the Act, the Company has a
Stakeholders’ Relationship Committee. As on March 31, 2023, the Committee comprised of 3 (Three) members, all being
Non-Executive Directors, out of whom 1 (One) is Non-Executive Independent Director. Mr. Sunam Sarkar, Non-Executive
Non-Independent Director, acts as the Chairman of the Committee.

During FY23, 1 (One) meeting of the Stakeholders Relationship Committee was held on May 12, 2022.

The composition of the Committee and attendance of members at the Committee meetings held during FY23, are
given below:

No. of meetings held during

Name of Director Designation* Category of Director his tenure and attended
Held Attended
Mr. Onkar Kanwar Member Non-Executive Non- 1 1
Independent
Mr. Sunam Sarkar Chairman Non-Executive Non- 1 1
Independent
Mr. Akshay Chudasama Member Non-Executive 1 1
Independent
*Mr. Onkar Kanwar was appointed as Chairman of the Committee w.e.f. May 9, 2023.

Ms. Seema Thapar, Company Secretary, acts as the • Review of measures taken for effective exercise of
Compliance Officer of the Company and Secretary to voting rights by shareholders.
the Committee.
• Review of adherence to the service standards
Mr. Sunam Sarkar, Chairman of Stakeholders adopted by the listed entity in respect of various
Relationship Committee, attended the Annual General services being rendered by the Registrar & Share
Meeting held on July 11, 2022 to answer the shareholders Transfer Agent.
queries.
• Review of the various measures and initiatives
Brief description of terms of reference taken by the listed entity for reducing the quantum
of unclaimed dividends and ensuring timely receipt
This Committee has been formed with a view to of dividend warrants/ annual reports/ statutory
undertake the following: - notices by the shareholders of the Company.
• Approval of transmission of shares/ debentures No. of shareholders’ complaints received
issued by the Company, issue of duplicate
certificates and certificates after split/ During FY23, the Company received 16 complaints. As
consolidation/ replacement. on date, no complaints are pending. All complaints
were attended and resolved to the satisfaction of the
• Looking into the redressal of shareholders’ and shareholders. Also there were no pending complaints at
investors’ complaints and other areas of investor the beginning of FY23.
services.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
• Resolving the grievances of the security holders
COMMITTEE
of the listed entity including complaints related
to transfer/ transmission of shares, non-receipt of A brief outline of the Company’s CSR Policy
annual report, non-receipt of declared dividends,
issue of new/ duplicate certificates, general The Company is committed to incorporating policies,
meetings etc. systems and approaches to achieve its positive impact
growth objectives. Deeply inherent in our vision statement

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Overview Leadership Report Discussion and Analysis Reports Statements

are the principles of sustainability. The CSR approach Composition of CSR Committee
stems from our vision statement focusing on 'continuously
enhancing stakeholder value', which includes the In compliance with the requirements of the Act,
larger society and environment in which the Company the Company has constituted the Corporate Social
operates. The CSR philosophy of the Company rests Responsibility (CSR) Committee. As on March 31, 2023,
on the principle of sustainability and self-reliance. It the Committee comprised of 4 (Four) members of
also embeds a dimension of philanthropy. At the core of whom 2 (Two) are Non-Executive Independent Directors
Apollo’s responsibility belief is stakeholder engagement. and 2 (Two) are Non- Executive Non-Independent
Consequently, all the projects the Company has link Directors. Mr. Onkar Kanwar acts as the Chairman of
to its stakeholders, the issues they face and the issues the Committee. The Company Secretary acts as the
organization has identified to support on philanthropy Secretary to the Committee.
front.

Meeting of CSR Committee and attendance of members during the year

During FY23, 2 (Two) meetings of CSR Committee were held on May 11, 2022 and February 2, 2023.

No. of meetings held during

Name of Director Designation Category of Director his / her tenure and attended
Held Attended
Mr. Onkar Kanwar Chairman Non-Executive Non- 2 2
Independent
Mr. Sunam Sarkar Member Non-Executive Non- 2 2
Independent
Gen. Bikram Singh (Retd.) Member Non-Executive 2 2
Independent
Ms. Lakshmi Puri* Member Non-Executive 1 1
Independent

*Ms. Lakshmi Puri was inducted as a Member of CSR Committee w.e.f. May 12, 2022.

Your Company has also laid down a CSR Policy in order • To monitor the CSR Policy of the Company from
to execute its various CSR Initiatives. time to time.

Brief description of terms of reference • To carry out all the activities as may be specified
under the Act & rules related thereto, including
The CSR Committee shall, inter alia, be responsible for statutory amendments from time to time.
the following:
BUSINESS RESPONSIBILITY & SUSTAINABILITY
• To formulate and recommend to the Board, a CSR
(BRS) COMMITTEE
Policy which shall indicate the activities to be
undertaken by the Company in areas or subject, The Listing Regulations mandates the top 1000 listed
specified in Schedule VII of the Act. Companies by market capitalisation to provide Business
Responsibility & Sustainability Report ('BRS Report')
• To recommend to the Board, the amount of
in their Annual Report describing the initiatives taken
expenditure to be incurred on CSR activities.
by the Company from an environmental, social and
• To formulate and recommend to the Board, an governance perspective in the format specified by the
Annual Action Plan in pursuance of its CSR Policy. SEBI.

• To review and monitor the CSR programs The Company follows following nine core principles as
undertaken by the Company and spending on the prescribed by SEBI and the entire BRS Report is based
CSR activities. on actions taken by the Company for the adoption of
these principles:
• To review the Impact Assessment Reports, if any,
undertaken through independent agencies. i. Businesses should conduct and govern themselves
with Ethics, Transparency and Accountability.
• To develop new areas for CSR activities, if required.
ii. Businesses should provide goods and services that
• To review and recommend to the Board, the annual are safe and contribute to sustainability throughout
report on CSR activities. their life cycle.

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 Apollo Tyres Ltd
Annual Report 2022-23

iii. Businesses should promote the wellbeing of all ix. Businesses should engage with and provide value
employees. to their customers and consumers in a responsible
manner.
iv. Businesses should respect the interests of, and be
responsive towards all stakeholders, especially The Board of Directors, at its meeting held on May
those who are disadvantaged, vulnerable and 10, 2016, had constituted a 'Business Responsibility
marginalized. Committee' and at its meeting held on October 29, 2021
v. Businesses should respect and promote human had renamed the Committee to 'Business Responsibility
rights. and Sustainability Committee' (BRS) in view of the
enhanced roles of the Committee.
vi. Business should respect, protect, and make efforts
to restore the environment. Composition of BRS Committee
vii. Businesses, when engaged in influencing public As on March 31, 2023, the Committee comprised of
and regulatory policy, should do so in a responsible 4 (Four) members. Mr. Onkar Kanwar acts as the
manner. Chairman of the Committee. The Company Secretary
viii. Businesses should support inclusive growth and acts as the Secretary to the Committee.
equitable development.

Meeting of BRS Committee and attendance of members during the year

During FY23, 1 (One) meeting of BRS Committee was held on May 12, 2022.

No. of meetings held during

Name of Director Designation Category of Director his tenure and attended
Held Attended
Mr. Onkar Kanwar Chairman Non-Executive Non- 1 1
Independent
Mr. Neeraj Kanwar Member Executive 1 1
Mr. Sunam Sarkar Member Non-Executive Non- 1 1
Independent
Mr. Akshay Chudasama Member Non-Executive 1 1
Independent

RISK MANAGEMENT COMMITTEE Middle East Africa (APMEA) region including India,
Europe region, United States (US) region and Corporate
In compliance with the Regulation 21 of the SEBI Listing Functions headed by President (APMEA), President
Regulations, the Company has constituted a Risk (Europe), Group Head (New Market & Channels) and
Management Committee (RMC). The Risk Management Chief Financial Officer as Chairperson of the respective
Committee consists of 7 (Seven) members, with majority Committees and represented by the functional heads
of members being Directors of the Company. as Chief Risk Officers. The Committees review each risk
on a quarterly basis and evaluate its impact and plans
The Company has a well laid out Risk Management
for mitigation. Few cross-functioning teams have been
Policy, covering the process of identifying, assessing,
formed to share the common risks between dependent
mitigating, reporting and reviewing critical risks
functions to avoid overlap of risks. The risks duly aligned
impacting the achievement of Company’s objectives.
with the organisation objectives, documented in form
There is an ongoing process to track the evolution
of risk register are placed before Risk Management
of risks and delivery of mitigating action plans, that
Committee. The Risk Management Committee of the
fosters business resilience. The risk assessment and
Company reviews the risks of APMEA, Europe and US
mitigation procedures are periodically updated to the
region, corporate functions and provides its directions
Board through the Audit Committee/ Risk Management
to the management, if any.
Committee.
In the opinion of the Board, there has been no identified
The Company has formed Internal Risk Committees
element of risk that may threaten the existence of
(IRCs), which review risk registers for Asia Pacific
the Company.

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During FY23, 4 (Four) meetings of RMC were held on May 11, 2022, August 11, 2022, November 10, 2022 and January 27, 2023.

No. of meetings held during

Category of Director/
Name of Director/ Official Designation his tenure and attended
Official
Held Attended
Mr. Sunam Sarkar Chairman Non-Executive Non- 4 4
Independent
Mr. Francesco Gori Member Non- Executive Non- 4 4
Independent
Mr. Robert Steinmetz Member Non-Executive Non- 4 4
Independent
Mr. Satish Sharma Member Executive 4 4
Mr. Vikram S. Mehta Member Non-Executive 4 4
Independent
Mr. Benoit Rivallant Member President (Europe) 4 4
Mr. Gaurav Kumar Member Chief Financial Officer 4 4

Ms. Seema Thapar, Company Secretary, acts as • Recommend training programs for relevant official
Secretary to the Committee. with specific Risk Management responsibilities.

The roles and responsibilities of the Risk Management • Assess and manage risk for Company as a whole at
Committee are as follows:- global level.

• Develop and maintain Risk Management charter • Review and approve the Risk Register prepared by
and policies. the Chief Risk Officers.

• Advise business units and corporate functions on • Any other role or responsibility as may be delegated
risk initiatives. by the Board of Directors from time to time.

• Spearhead Risk Management initiative within the In addition to the above, the Committee also adheres to
Company. the roles and responsibilities as specified in Clause C of
Part D under Schedule II of Listing Regulations.
• Monitor emerging issues and share best practices.
The Chairman of the Risk Management Committee
• Improve Risk Management techniques and makes the presentation before the Board on the major
enhances awareness. high risks of APMEA including India, Europe, US Region
and Corporate Functions.
• Set standards for risk documentation and
monitoring.

4. GENERAL BODY MEETINGS

(a) The last three Annual General Meetings were held as under:

Financial Year Date Time Venue Special Resolution Passed

2021-22 July 11, 2022 03:00 PM Through Video 1) Continuation of Mr. Onkar Kanwar
Conference (DIN:00058921) as a Non-Executive Director
designated as Chairman.
2) Remuneration of Mr. Satish Sharma
(DIN:07527148), Whole-time Director.
3) Authorization for Private Placement of Non-
Convertible Debentures.
2020-21 July 23, 2021 03:00 PM Through Video 1) Authorization for Private Placement of NCDs.
Conference 2) Remuneration of Mr. Satish Sharma, Whole-
time Director.
2019-20 August 20, 03:10 PM Through Video Re-appointment of Gen. Bikram Singh (Retd.)
2020 Conference (DIN:07259060) as an Independent Director.

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 Apollo Tyres Ltd
Annual Report 2022-23

(b) Resolution passed through Postal Ballot/ April 3, 2023. The result of the postal ballot/
e-Voting: e-Voting was declared on April 4, 2023.

The members of the Company on March 31, f. As on date of this report, your Company does
2023 passed a Special Resolution through Postal not propose to pass any Special Resolution for
Ballot (conducted through remote e-Voting only) the time being by way of Postal Ballot.
for appointment of Dr. Jaimini Bhagwati (DIN:
07274047) as an Independent Director of the 5. DISCLOSURES & AFFIRMATIONS
Company.
(a) RELATED PARTY TRANSACTIONS
Voting Pattern of the resolution passed through
Postal Ballot, is as follows: In Compliance with Section 188 of the Companies
Act, 2013, Regulation 23 of Listing Regulations
Particulars Remote e-Voting and rules as applicable, the Company has framed
Total number of Valid Votes 51,71,30,111 a Policy on Related Party Transactions including
Votes cast in favour of the 51,62,06,056 policy on materiality of related party transactions.
Resolution The policy is to regulate transactions between the
Votes cast against the 9,24,055 Company and its related parties based on the laws
Resolution and regulations applicable to the Company.
Number of Invalid Votes -
Further, there is no transaction of the Company
Procedure followed for Postal Ballot/e-Voting with any person or entity belonging to the
promoter/promoter group which hold(s) 10% or
a. In terms of the General Circular No.14/2020 more shareholding in the Company.
dated April 8, 2020 and General Circular No.
17/2020 dated April 13, 2020, General Circular During the year, no transaction of material nature
No. 20/2020 dated May 5, 2020 and General has been entered into by the Company with its
Circular No. 22/2020 dated June 15, 2020, Promoters, the Directors or the Management,
General Circular No. 33/2020 dated September their subsidiary or relatives etc. that may have a
28, 2020, General Circular No. 39/2020 dated potential conflict with the interests of the Company.
December 31, 2020, General Circular No. Related Parties transactions with them as required
10/2021 dated June 23, 2021, General Circular under Indian Accounting Standard (Ind AS-24) are
No. 03/2022 dated May 5, 2022 and General furnished under Notes on Accounts attached with
Circular No. 11/2022 dated December 28, 2022 the financial statements for the year ended March
(the 'MCA Circulars'), issued by the Ministry 31, 2023.
of Corporate Affairs, Government of India
(b) ACCOUNTING POLICIES
(the 'MCA'), the postal ballot process was
conducted by way of electronic voting only. There has not been any change in accounting
The Company engaged the services of National policies of the Company during the year.
Securities Depository Limited ('NSDL') for the
purpose of providing e-voting facility. (c) CEO AND CFO CERTIFICATION
b. In accordance with the MCA Circulars, the The Vice Chairman & Managing Director (CEO)
Notices of Postal Ballot along with the and CFO have submitted certificate, in terms of
instructions regarding e-Voting were sent only Regulation 17(8) read with Part B of Schedule II of
by e-mail to all those Shareholders. Listing Regulations, to the Board.

c. The Members were informed vide the Postal The Certificate is attached as Annexure B to the
Ballot Notice dated February 2, 2023 that they Corporate Governance Report.
were required to give their assent for or dissent
against the proposal through e-Voting facility (d) COMPLIANCE BY THE COMPANY
which was kept open from March 2, 2023 (10:00
The Company has materially complied with the
AM) to March 31, 2023 (5:00 PM).
requirements of the SEBI and other statutory
d. Mr. P.P. Zibi Jose, Practicing Company authorities on all matters relating to capital
Secretary, was appointed as the Scrutinizer to markets during the last three years. No penalties or
conduct the Postal Ballot process in a fair and strictures have been imposed on the Company by
transparent manner. the stock exchanges, SEBI or any other statutory
authority. The Company has developed an
e. After due scrutiny of e-Voting received up to integrated compliance dashboard which provides
the close of working hours as mentioned above, reasonable assurance to the Management and the
scrutinizer had submitted its final report on

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Board of Directors regarding effectiveness of timely 2013 ('Act') read with Rule 6 of Investors Education
compliances. All the Compliances applicable to the and Protection Fund Authority (Accounting, Audit,
Company have been captured in the Dashboard Transfer and Refund) Rules, 2016 (as amended from
and are mapped amongst the respective users. The time to time) ('Rules'), members whose dividend
timelines are fixed based on the legal requirement amount has not been paid or claimed for seven
and the system is aligned in such a manner that it consecutive years or more, shares held by them
alerts the users on a timely manner. shall be credited to the DEMAT Account of the
Investor Education and Protection Fund Authority
The Company in order to further strengthen its (IEPFA). During FY23, 13,862 shares held by
compliance reporting and management system for aforesaid members, were transferred to the DEMAT
its overseas subsidiaries, had also rolled out a Global Account of IEPFA constituted in accordance with
Regulatory Compliance System ('Compliance the Rules, on September 23, 2022. As on March 31,
Management System/ Tool'). 2023, 3,904 shares are appearing in the Apollo Tyres
Ltd- Unclaimed suspense account.
The Compliance Dashboard captures the
compliances applicable to the Company at Indian The unclaimed or unpaid dividend which have
level as well as the international laws applicable already been transferred and the shares which
to the overseas subsidiaries. The Compliance are transferred, can be claimed back by the
dashboard also covers the compliances relating to shareholders from IEPFA by following the procedure
the codes and policies. given on its website i.e. http://iepf.gov.in/IEPFA/
refund.html.
The dashboard has been documented to provide a
comprehensive view of: Nodal Officer:- Pursuant to Rule 7(2A) of the IEPF
Rules, Ms. Seema Thapar, Company Secretary &
• applicable laws to the Company;
Compliance Officer, is appointed as Nodal Officer
• key control points; of the Company.
• allocation of responsibilities.
(f) MEANS OF COMMUNICATION
(e) TRANSFER OF UNCLAIMED/
UNDELIVERED SHARES (i) Quarterly/ Annual Financial Results

In terms with the provisions of Regulation 39(4) As per Regulation 47(1)(b) of the Listing
read with Schedule VI of Listing Regulations, Regulations, an extract of the detailed format
the unclaimed/ undelivered shares lying in the of Quarterly/ Annual Financial Results is filed
possession of the Company are required to be with the Stock Exchanges under Regulation
dematerialised and transferred to 'Unclaimed 33 of the Listing Regulations. The results
Suspense Account' of the Company. The status in prescribed format are published in the
of unclaimed shares as on March 31, 2023 lying in Newspapers viz. Financial Express (National
'Unclaimed Suspense Account'/ 'Transferred to Daily) and Kerala Kaumudi (Regional Daily).
IEPFA Account' is as under:- The Quarterly/ Annual Financial Results are
also available on the Company's website and
No. of No. of
Particulars Stock Exchange websites www.nseindia.com
Shareholders shares
and www.bseindia.com.
Aggregate number of 18 3,904
shareholders and the (ii) Corporate announcements of material
outstanding shares in the information
suspense account lying
All material information about the Company
at the beginning of the
is promptly sent to the stock exchanges and
year, i.e. April 1, 2022
the Company regularly updates the media and
Number of shareholders 0 0
investor community about its financial as well
to whom shares were
as other organisational developments.
transferred from suspense
account during the year The Ministry of Corporate Affairs ('MCA') has
Aggregate number of 18 3,904 vide its Circular No. 14/2020 (dated April 8,
shareholders and the 2020), Circular No.17/2020 (dated April 13,
outstanding shares in the 2020) Circular No. 20/2020 (dated May 5,
suspense account lying 2020), Circular No. 02/2021 (dated January 13,
at the end of the year, i.e. 2021), Circular No. 2/2022 (dated May 5, 2022)
March 31, 2023 and Circular No. 11/2022 (dated December
28, 2022) and SEBI vide its Circular No. SEBI/
In terms of Section 124(6) of the Companies Act,
HO/CFD/CMD1/CIR/P/2020/79 (dated May

201
 Apollo Tyres Ltd
Annual Report 2022-23

12, 2020), Circular No. SEBI/HO/CFD/CMD2/ launched a mobile app 'SEBI SCORES', making
CIR/P/2021/11 (dated January 15, 2021), SEBI/ it easier for investors to lodge their grievances
HO/CFD/CMD2/CIR/P/2022/62 (dated May with SEBI, as they can now access SCORES at
13, 2022) and SEBI/HO/CFD/PoD-2/P/ their convenience of a smart phone.
CIR/2023/4 (dated January 5, 2023), directed
the Companies to send the Annual Report by (v) Investor Relations (IR)
e-mail to all the Members of the Company
Your Company continuously strives for excellence
except to those Members who request for hard
in its IR engagement with International and
copy. Therefore, the Annual Report for FY23
Domestic investors. Structured conference
and Notice of the AGM of the Company is being
calls and periodic investor/ analyst interactions,
sent to the Members at their registered e-mail
quarterly earnings calls and analyst meets were
addresses in accordance with MCA and SEBI
organised during the year. Your Company
Circulars. The Annual Report containing, inter
always believes in leading from the front with
alia, Notice of Annual General Meeting, Audited
emerging best practices in IR and building a
Financial Statement, Consolidated Financial
relationship of mutual understanding with
Statement, Board’s Report, Management
investor/ analysts.
Discussion and Analysis, Corporate Governance
Report, Auditors’ Report and other important The transcript and video recording of the
information are also displayed on the Company’s Analyst/ Investor Conference Call is posted
website https://corporate.apollotyres.com/. on the website of the Company as well as filed
with the stock exchanges where the securities
(iii) Stock Exchange Filings
of the Company are listed.
- NSE Electronic Application Processing
(vi) Designated email ID
System (NEAPS) - is a web-based application
designed by NSE for Corporates. All The Company has a designated e-mail ID for
periodical filings, announcements and other investor services i.e [email protected].
compliance filings are filed electronically on
NEAPS. (vii) Website

- BSE Listing Centre (Listing Centre)-BSE’s A separate dedicated section under 'Investors',
Listing Centre is a web-based application on the Company’s website gives information
designed for corporates. All periodical and on unclaimed dividends, shareholding pattern,
other compliance related filings are filed quarterly/ half yearly results and other relevant
electronically on the Listing Centre. information of interest to the investors / public.

(iv) SEBI Complaints Redress System (SCORES) (g) ADOPTION OF MANDATORY AND
DISCRETIONARY REQUIREMENTS
In addition to the investor complaints received
OF CORPORATE GOVERNANCE AS
from NSE, BSE, Registrar and Share Transfer
SPECIFIED IN REGULATIONS 17 TO 27
Agents etc., the investors’ complaints are
also being processed through the centralised
AND REGULATION 34(3) READ WITH
web-based complaint redressal system. The SCHEDULE V (C) OF THE LISTING
salient features of SCORES are availability of REGULATIONS
centralised database of the complaints and
The Company has complied with all mandatory
uploading online action taken reports by the
requirements of corporate governance with
Company. Through SCORES the investors can
respect to Regulations 17 to 27 and clauses (b) to
view online, the actions taken and current
(i) of Sub-Regulation (2) of Regulation 46 of Listing
status of the complaints. In its efforts to
Regulations.
improve ease of doing business, SEBI has

202
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Furthermore, the Company has complied with the requirements of the Schedule V of SEBI Listing Regulations in
connection with disclosures in this report.

Compliance Status
Particulars Regulation
(Yes/No/NA)
Independent Director(s) have been appointed in terms of specified 16(1)(b) & 25(6) YES
criteria of ‘independence’ and/ or ‘eligibility’
Board composition 17(1), 17(1A) & 17(1B) YES
Meeting of Board of Directors 17(2) YES
Quorum of Board meeting 17(2A) YES
Review of Compliance Reports 17(3) YES
Plans for orderly succession for appointments 17(4) YES
Code of Conduct 17(5) YES
Fees/ Compensation 17(6) YES
Minimum Information 17(7) YES
Compliance Certificate 17(8) YES
Risk Assessment & Management 17(9) YES
Performance Evaluation of Independent Directors 17(10) YES
Recommendation of Board 17(11) YES
Maximum number of Directorships 17A YES
Composition of Audit Committee 18(1) YES
Meeting of Audit Committee 18(2) YES
Composition of Nomination & Remuneration Committee 19(1) & (2) YES
Quorum of Nomination and Remuneration Committee meeting 19(2A) YES
Meeting of Nomination and Remuneration Committee 19(3A) YES
Composition of Stakeholders Relationship Committee 20(1), 20(2) & 20(2A) YES
Meeting of Stakeholders Relationship Committee 20(3A) YES
Composition and role of Risk Management Committee 21(1),(2),(3),(4) YES
Meeting of Risk Management Committee 21(3A) YES
Vigil Mechanism 22 YES
Policy for related party transaction 23(1),(1A),(5),(6),(7) YES
& (8)
Prior or Omnibus approval of Audit Committee for all related party 23(2), (3) YES
transactions
Approval for material related party transactions 23(4) YES
Disclosure of related party transactions on consolidated basis 23(9) YES
Composition of Board of Directors of unlisted material Subsidiary 24(1) YES
Other Corporate Governance requirements with respect to 24(2),(3),(4),(5) & (6) YES
subsidiary of listed entity
Annual Secretarial Compliance Report 24(A) YES
Alternate Director to Independent Director 25(1) YES
Maximum Tenure 25(2) YES
Meeting of Independent Directors 25(3) & (4) YES
Familiarization of Independent Directors 25(7) YES
Declaration from Independent Director 25(8) & (9) YES
D & O Insurance for Independent Directors 25(10) YES
Memberships in Committees 26(1) YES
Affirmation with compliance to code of conduct from members of 26(3) YES
Board of Directors and Senior Management Personnel
Disclosure of Shareholding by Non-Executive Directors 26(4) YES
Policy with respect to Obligations of Directors and Senior 26(2) & 26(5) YES
Management

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Annual Report 2022-23

The Company has adopted following discretionary (d) Trading window closure
requirements of Regulation 27 read with Schedule II
Part E of the Listing Regulations:- The trading restriction period shall be made
applicable from the end of every quarter till 48
(i) Modified Opinion(s) in audit report hours after the declaration of financial results.

The Company is in the regime of financial (e) Dividend Payment

statements with unmodified audit opinion.
The Final Dividend of H4.00 per Equity Share and
(ii) Reporting of internal auditor a Special Dividend of H0.50 per Equity Share,
aggregating to H4.50 per Equity Share having face
The internal auditor is reporting directly to the
value of H1/- each for the FY23, subject to approval
Audit Committee.
from shareholders, has been recommended by the
(h) As on March 31, 2023, our shares were not suspended Board of Directors. The same shall be paid on or
from trading. before 30 days from the date of AGM.

(f) Unclaimed Dividends

6) GENERAL SHAREHOLDER INFORMATION
In terms of Section 124(5) of the Companies Act,
(a) Registered Office 2013 ('Act') if a member does not claim the dividend
amount for a consecutive period of seven years or
3rd Floor, more, the unclaimed amount shall be transferred to
Areekal Mansion, the Investor Education and Protection Fund (IEPF)
Panampilly Nagar, established by the Central Government.
Kochi- 682036, Kerala, India
Ph: +91 484 4012046, 4012047 During the year, the Company transferred
Fax: +91 484 4012048 H82,67,052/- lying unclaimed in Unpaid Dividend
Account in respect of Dividend for the year 2014-15
(b) Annual General Meeting (AGM) to the said Fund on September 6, 2022.
The ensuing AGM of the Company will be held
on Wednesday, August 2, 2023 at 3:00 PM (IST) (g) Listing at Stock Exchanges
through video conferencing. Notice of the ensuing
National Stock Exchange of India Ltd.
AGM is separately provided along with the Annual
Exchange Plaza, Bandra Kurla Complex,
Report.
Bandra (E), Mumbai-400 051
(c) Financial Calendar for FY24 T: +91 22 26598100-14
F: +91 22 26598237-38
Quarter Period ending Date / Period E: [email protected]

First quarter June 30, On or before

2023 August 14, 2023 BSE Ltd.
Second September On or before Phiroje Jeejeebhoy Towers,
quarter/ half 30, 2023 November 14, 2023 1st Floor, Dalal Street
yearly Mumbai 400 001
Third quarter December 31, On or before T: +91 22 22721233/34
2023 February 14, 2024 F: +91 22 22721919/3027
Fourth March 31, On or before May E: [email protected]
quarter/year 2024 30, 2024
The annual listing fee for FY24 has been paid to all
the aforesaid stock exchanges.

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

(h) Stock Code

BSE Ltd. 500877
National Stock Exchange of India Ltd. APOLLOTYRE

(i) Stock Market Price Data for FY23

The Company’s share price on NSE and Nifty Index

NSE Nifty Index

Month Volume
High (₹) Low (₹) High Low
(in million)
April, 2022 214.00 187.00 74.03 18,114.65 16,824.70
May, 2022 224.50 189.05 83.25 17,132.85 15,735.75
June, 2022 223.70 167.10 70.12 16,793.85 15,183.40
July, 2022 222.00 184.30 37.87 17,172.80 15,511.05
August, 2022 268.30 218.55 78.26 17,992.20 17,154.80
September, 2022 303.45 249.20 111.78 18,096.15 16,747.70
October, 2022 293.40 262.00 52.47 18,022.80 16,855.55
November, 2022 318.00 270.00 119.18 18,816.05 17,959.20
December, 2022 330.50 305.10 60.01 18,887.60 17,774.25
January, 2023 339.95 304.90 69.98 18,251.95 17,405.55
February, 2023 343.05 309.45 56.50 18,134.75 17,255.20
March, 2023 324.85 303.35 34.76 17,799.95 16,828.35

Apollo Tyres Shares Closing Price (₹) vis-à-vis NSE Nifty Close

350.00 19000
18500
300.00
18000
250.00 17500

200.00 17000
16500
150.00 16000
100.00 15500
15000
50.00
14500
0.00 14000
2

23
22

22
2

23

3
2

22

2
22

2
r-2

-2
-2

-2

-2
l-2

g-

c-

n-

b-
p-
n-

ct
ay

ov

ar
Ap

De

Ja
Au
Ju

Ju

Fe
Se

M
N
M

Apollo Tyres Shares Closing Price (J) Nifty Close

205
 Apollo Tyres Ltd
Annual Report 2022-23

The Company’s share price on BSE and Sensex

BSE SENSEX
Month Volume
High (₹) Low (₹) High Low
(in million)
April, 2022 215.00 187.00 4.15 60,845.10 56,009.07
May, 2022 224.35 189.20 4.48 57,184.21 52,632.48
June, 2022 224.85 167.15 3.94 56,432.65 50,921.22
July, 2022 221.85 184.30 2.17 57,619.27 52,094.25
August, 2022 268.25 219.50 3.49 60,411.20 57,367.47
September, 2022 303.40 249.15 7.26 60,676.12 56,147.23
October, 2022 293.45 262.25 4.95 60,786.70 56,683.40
November, 2022 318.00 270.05 5.89 63,303.01 60,425.47
December, 2022 330.50 302.05 2.59 63,583.07 59,754.10
January, 2023 339.50 304.85 2.98 61,343.96 58,699.20
February, 2023 343.00 309.70 2.41 61,682.25 58,795.97
March, 2023 324.75 303.35 1.37 60,498.48 57,084.91

Apollo Tyres Shares Closing Price (₹) vis-à-vis BSE Sensex Close

350.00 64000
62000
300.00
60000
250.00
58000
200.00 56000

150.00 54000
52000
100.00
50000
50.00 48000
0.00 46000
2

23
22

22
2

23

3
2

2
22

2
r-2

-2
-2

-2

-2

-2
l-2

g-

c-

n-

b-
n-

ct
ay

ov

ar
Ap

De

Ja
Au
Ju

Ju

Fe
Se

M
N
M

Apollo Tyres Shares Closing Price (J) Sensex Close

( j) Shares Traded during April 1, 2022 to March 31, 2023

Particulars BSE NSE

No. of shares traded (in million) 45.69 845.20
Highest Share Price (in ₹ ) 343.00 343.05
Lowest Share Price (in ₹ ) 167.15 167.10
Closing Share Price (as on March 31, 2023) 319.85 319.90
Market Capitalisation (as on March 31, 2023) ( ₹ in million) 203,137.04 203,168.79

(k) Elimination of Duplicate Mailing

The shareholders who are holding physical shares in more than one folio in identical name, or in joint holder’s name in
similar order, may send the Share Certificate(s), along with request for consolidation of holding in one folio, to avoid
mailing of multiple Annual Reports.

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

(l) 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 yearly
certificates from the Company Secretary in practice for due compliance relating to transmission, issues of duplicate
share certificate, split of shares etc.

(m) Distribution of Shareholding

The following is the distribution of shareholding of equity shares of the Company as on March 31, 2023

No. of % of No. of % of
Category
Shareholders Shareholders Shares Held shareholding
Upto 5000 285,640 99.68 37,229,017 5.86
5001 - 10000 372 0.13 2,775,595 0.44
10001 - 20000 165 0.06 2,396,895 0.38
20001 - 30000 53 0.02 1,334,628 0.21
30001 - 40000 40 0.01 1,396,078 0.22
40001 - 50000 24 0.01 1,080,214 0.17
50001 – 100000 53 0.02 3,957,175 0.62
100001 and above 208 0.07 584,931,344 92.10
Grand Total 286,555 100.00 635,100,946 100.00

The Promoter and Promoter group hold 237.17 million shares constituting 37.34% of the share capital of the Company
as on March 31, 2023.

Categories of shareholders as on March 31, 2023

Category No. of shares %age

Promoters 237,165,403 37.34
Mutual Funds/Bank/FIs/Alternate Investment Fund/QIB Etc. 112,882,363 17.78
Govt. of Kerala/KSIDC etc. 10,001,812 1.57
FII/NRI etc. 144,486,738 22.75
Foreign Body Corporate 63,050,966 9.93
Public 67,513,664 10.63
Total 635,100,946 100.00

Category of shareholders

10.63% 37.34%

9.93%

22.75%
17.78%

1.57%

Promotors FII/NRI etc

Mutual Funds/Bank/FIs/Alternate Investment Fund/QIB etc. Foreign Body Corporate
Govt. of Kerala/KSIDC etc. Public

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Annual Report 2022-23

(n) Reconciliation of Share Capital Audit State of Telangana

Tel No. +91 40 67162222; Fax No. +91 40 23001153
As stipulated by SEBI, a qualified Company Toll Free Number: 1800 309 4001
Secretary in practice conducts the Reconciliation Email: [email protected]
of Share Capital Audit of the Company for the Website: https://kfintech.com/
purpose of reconciliation of total admitted capital
with the depositories, i.e. NSDL and CDSL, and the (r) ECS Mandate
total issued and listed capital of the Company.
All shareholders are requested to update their bank
The Company Secretary in practice conducts such account details with their respective depositories
audit in every quarter and issues a Reconciliation of urgently. This would facilitate transfer of dividend
Share Capital Audit Certificate to this effect to the directly to the bank account of the shareholders.
Company. A copy of such audit report is submitted
to the stock exchanges, where the Company’s (s) Participation & Voting at AGM
shares are listed and also placed before the Board.
Pursuant to the General Circular numbers
(o) Dematerialisation of Shares and Liquidity 20/2020, 14/2020, 17/2020, 02/2021, 03/2022
and 11/2022 issued by the Ministry of Corporate
The equity shares of the Company are being Affairs and Circular numbers SEBI/HO/
traded under compulsorily demat form as per SEBI CFD/CMD1/CIR/P/2020/79, SEBI /HO/CFD/
notification. The Company’s shares are tradable CMD2/CIR/P/2021/11, SEBI/HO/CFD/CMD2/
compulsorily in electronic form and are available CIR/P/2022/62 and SEBI/HO/CFD/PoD-2/P/
for trading in the depository systems of both CIR/2023/4 issued by SEBI, the 50th AGM of the
National Securities Depository Ltd. (NSDL) and Company will be held through video-conferencing
Central Depository Services (India) Ltd. (CDSL). and the detailed instructions for participation and
The International Securities Identification Number voting at the meeting is available in the notice of
(ISIN) of the Company, as allotted by NSDL and the 50th AGM.
CDSL is INE438A01022.
(t) Register e-mail address
As on March 31, 2023, 98.81% of the share capital
stands dematerialised. BSE and NSE have To contribute towards greener environment,
permitted trading of Apollo Tyres’ share into future the Company proposes to send documents like
and option (F&O) segment w.e.f. February 19, 2010. shareholders meeting notice/other notices, audited
financial statements, board's report, auditors’ report
(p) Share Transfer/ Demat Registry work or any other document, to members in electronic
form at the e-mail address provided by them and/or
All permitted share transfers/ Transmission/ demat available to the Company by the Depositories.
are being processed by the following Registrar and
Transfer Agent:- Members who have not yet registered their e-mail
address (including those who wish to change
KFin Technologies Limited their already registered e-mail address) may
Selenium, Plot No. 31 & 32, Tower-B, get the same registered/updated either with
Serilingampally, Nanakramguda, their depository participants or by writing to the
Financial District, Hyderabad-500032, Registrar & Transfer Agent of the Company.
State of Telangana
Tel No. +91 40 67162222; Fax No. +91 40 23001153
(u) Plant Location
Toll Free Number: 1800 309 4001 1. Perambra, P O Chalakudy,
Email: [email protected]
Trichur 680 689, Kerala
Website: https://kfintech.com/
2. Limda, Taluka Waghodia,
(q) Share Transfer Department Dist. Vadodara 391 760, Gujarat

All communications regarding change of address 3. SIPCOT Industrial Growth Centre,

for shares held in physical form, dividend etc. should Oragadam, Chennai, Tamil Nadu
be sent at the Company’s RTA Office at:- 4. Kalamassery,

KFin Technologies Limited Alwaye, Kerala – 683 104

5. Chinnapandur Village,
Selenium, Plot No. 31 & 32, Tower-B,
Varadaiahpalem Mandal, Near Sricity,
Serilingampally, Nanakramguda,
Chitoor District- 517541
Financial District, Hyderabad-500032,
Andhra Pradesh

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

6. Ir. Schiffstraat 370, futures contract and currency & interest rate swaps,
7547 RD Enschede, The Netherlands to hedge foreign exchange rate risk and interest
rate risk. The hedging is done as per the Board
7. H-3212 Gyöngyöshalász, approved policy. The Company, at all the times,
Road no.: 3210, Plot no.: 0106, Hungary comply with all the RBI hedging guidelines that are
prescribed from time to time.
(v) Address for correspondence for share
transfer/ demat of shares, payment of The Company’s exchange rate risk arises mainly
dividend and any other query relating to from import (of raw material and capital items)
shares and export (of finished goods) and follows a policy
of matching of import and export exposures
KFin Technologies Limited (natural hedge) to reduce the net exposure in any
Selenium, Plot No. 31 & 32, Tower-B, foreign currency. Whenever the natural hedge is
Serilingampally, Nanakramguda, not available or is not fully covering the foreign
Financial District, Hyderabad-500032, currency exposure of the Company, the Company
State of Telangana uses the above mentioned derivative instruments to
Tel No. +91 40 67162222; Fax No. +91 40 23001153 manage its exposure.
Toll Free Number: 1800 309 4001
Email: [email protected] The Company’s interest rate risk arises as the
Website: https://kfintech.com/ Company borrows funds at both fixed and
floating interest rates. Some amount of this risk is
(w)Commodity price risk or foreign exchange managed by the Company through maintaining
risk and hedging activities during FY23 an appropriate mix of fixed and floating rate
borrowings and also through an appropriate
The Company enters into a variety of derivative amount of interest rate swaps, especially, to hedge
financial instruments like options, forwards &
the floating rate borrowings to fixed one.

Exposure of the Company to various commodities:

Exposure in % of such exposure hedged through commodity

Exposure in ₹
Quantity derivatives
towards the
Commodity Name terms towards Domestic market International market
particular
the particular Total
commodity OTC Exchange OTC Exchange
commodity
Natural Rubber ₹ 3,306 Crores 1,87,609 MT Nil Nil Nil Nil Nil
*This data is based on NR Consumption as per YMR 48

Sourcing of Natural Rubber is managed through (x) Loans and advances in the nature of loans
a robust process of Supplier Selection, continuous to firms / companies in which Directors
market scanning, Regular Supplier Assessment are interested
& Vendor Development initiatives. The Company
follows a broad base diversified Vendor Sourcing Please refer details under disclosure of related party
Policy which enables it to minimise risks in supply transactions in notes forming part of the financial
chain. There exists a fair balance of regions and statements.
locations of suppliers in its portfolio. Development
of existing and new supply partners is carried (y) Outstanding GDRS / ADRS / warrants or
through systematic approach using tools such any convertible instruments, conversion
as audits and regular interaction. The Company date and likely impact on equity
uses a healthy combination of Contract Purchases
and Open market Buying to meet its Production As on March 31, 2023, there were no outstanding
requirements. GDRs/ ADRs/ Warrants or any convertible
instruments.

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 Apollo Tyres Ltd
Annual Report 2022-23

7) ADDITIONAL INFORMATION • Long-Term Rating: IND AA+/Stable (Non-

Convertible Debentures)
(a) Investor Relations Section
• Short-Term Rating: IND A1+ (Commercial
The Investors Relations Section is located at the Paper)
Corporate Office of the Company.
(d) Details of Utilisation of funds raised
Contact person : Ms. Seema Thapar, through NCDs
Company Secretary &
Compliance Officer Particulars of the funds
(₹ in million)
Time : 10:00 AM to 6:00 PM raised through NCDs
on all working days of Reimbursement of capex 5,000
the Company (except
Saturdays and Sundays) (e) Auditors
Tel No. : +91 124 2721000
M/s. S.R. Batliboi & Co. LLP, Chartered Accountants.
Email : [email protected]
(f) Cost Auditors
(b) Bankers
M/s. N.P. Gopalakrishnan & Co., Cost Accountants.
Axis Bank Ltd.
Bank of India With reference to the General Circular No. 15/2011
– 52/5/CAB-2011 dated April 11, 2011, issued by
BNP Paribas
the Government of India, Ministry of Corporate
Citibank N.A.
Affairs, Cost Audit Branch, New Delhi, following are
Federal Bank the details of Cost Auditor and filing of cost audit
HDFC Bank Ltd. report with Central Government:
ICICI Bank Ltd.
Details of Cost
IDBI Bank Ltd. Particulars of the Cost Audit Report filed
Kotak Mahindra Bank Ltd. Auditor for the period ended
Mizuho Bank Ltd. March 31, 2022
Standard Chartered Bank Mr.N.P.Sukumaran Filing date:
State Bank of India (M No.4503) September 24, 2022
Apartment No.311,
Sumitomo Mitsui Banking Corporation
4th Floor, D.D.Vyapar
The Hongkong and Shanghai Banking Corporation Bhawan,
Limited K.P.Vallon Road,
Union Bank of India Kadavanthra P O,
RBL Bank Ltd. Kochi - 682 020(Kerala)
E-mail : [email protected]
(c) Credit Rating
(g) Code of Conduct for Prevention of Insider
During the year, the following rating agencies, Trading
rated our bank facilities and other debt programs
as under:-
In compliance with the SEBI regulations on
prevention of insider trading, the Company has
(i) On January 6, 2023, CRISIL has reaffirmed the formulated a comprehensive Code of Conduct for
following rating: ‘Prevention of Insider Trading’ in the securities of
the Company. This Code of Conduct is applicable
• Long-Term Rating: CRISIL AA+/Stable to Promoters, Directors, President/ Chiefs, Vice
(Includes Loan-Term Loan, Non-Convertible President/ Group Heads, Heads and such other
Debentures, Fund Based Banking Facilities employees of the Company and others who are
like Cash Credit etc.) expected to have access to unpublished price
sensitive information.
• Short-Term Rating: CRISIL A1+ (Commercial
Paper, Non-Fund Based Banking Facilities The Code of Conduct lays down guidelines advising
like Letter of Credit etc.) them on procedures to be followed and disclosures
to be made while dealing with the shares of the
(ii) On March 1, 2023, India Ratings and Research
Company and cautioning them of consequences of
(Ind-Ra) has reaffirmed the following rating:
violations. The Company Secretary of the Company
is the Compliance Officer.
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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

The Company has put in place, all the systems and Declaration Affirming Compliance of provisions of
procedures to ensure the compliances of Insider the Code of Conduct
Trading Regulations. The Company has an “Insider
Trading Tool” which acts as the structured digital To the best of my knowledge and belief and on
database of the designated persons/ insiders. the basis of declarations given to me, I hereby
affirm that all the Board members and the Senior
During FY23, the Company had conducted several Management Personnel have fully complied with
awareness sessions on insider trading for the the provisions of the Code of Conduct for Directors
Designated persons. and Senior Management Personnel during the
financial year ended March 31, 2023.
(h) Code of Practices and Procedures for Fair
Disclosure NEERAJ KANWAR
The Code of Practices and Procedures for Vice Chairman & Managing Director
Fair Disclosure of Unpublished Price Sensitive
Information, lays down broad standards of ( j) Global Code of Conduct
compliance and ethics, as required by Listing
Regulations and other applicable SEBI regulations. The Company has designed a global 'Code of Conduct
The Code is required to be complied in respect of Policy' ('Code') to conduct its business with honesty
all corporate disclosures in respect of the Company and integrity and in compliance with all applicable
and/ or its Subsidiary Companies, including legal and regulatory requirements. This Code sets
Overseas Subsidiaries. out the fundamental standards to be followed by
all employees of the Company including Associates,
The Company Secretary of the Company is the Subsidiaries and Joint Ventures. The Company has
Compliance Officer. rolled out mandatory online training for all the
employees for successful implementation of the Code.
Pursuant to SEBI (Prohibition of Insider Trading)
(Amendment) Regulations, 2018 which was (k) Whistle Blower Policy/ Vigil Mechanism
effective from April 1, 2019, the existing Code
of Practices and Procedures for Fair Disclosure Apollo Tyres Ltd believes in the conduct of its
of Unpublished Price Sensitive Information was business affairs in a fair and transparent manner
amended to align with the SEBI (Prohibition of by adopting highest standards of professionalism,
Insider Trading) Amendment Regulations, 2018. The honesty, integrity and ethical behavior. In order
Code of Practices and Procedures for Fair Disclosure to inculcate accountability and transparency
of Unpublished Price Sensitive Information was in its business conduct, the Company has been
approved/ ratified by the Board on May 9, 2019. constantly reviewing its existing systems and
procedures. Your Company has approved a Whistle
The Board has also approved/ ratified the Policy Blower Policy which will enable all employees,
and Procedure for reporting and inquiry in case of Directors and other stakeholders to raise their
leak or suspected leak of unpublished price sensitive genuine concerns internally in a responsible
information as per SEBI (Prohibition of Insider and effective manner if and when they discover
Trading) (Amendment) Regulations, 2018. information which they believe shows serious
malpractice or irregularity within the Company
(i) Code of Conduct for Directors and Senior
and/or to report to the management instances of
Management unethical behavior, actual or suspected, fraud or
violation of Company’s Code of Conduct or Ethics
The Board of Directors of Apollo Tyres Ltd has laid
Policy. The Audit Committee of the Company
down a code of business conduct called 'The Code
periodically reviews the functioning of whistle
of Conduct for Directors and Senior Management'.
blower mechanism.
The Code envisages that Board of Directors and
Senior Management must act within the bounds of In terms with the policy, an Internal Grievance
the authority conferred upon them and with a duty Redressal Committee (IC) has been constituted by
to make and keep themselves informed about the the Company, which is headed by the Chairman
development in the industry in which the Company of the Audit Committee of the Board. Company
is involved and the legal requirements to be fulfilled. Secretary of the Company acts as an Ombudsman
who, on receipt of complaint, examines the possible
The Code is applicable to all the Directors and Senior
intentions and genuineness of the disclosure
Management of the Company. The Company
in advance before referring it to the IC for
Secretary of the Company is the Compliance
investigations. The IC, after investigation, submits
Officer for ensuring compliances related to this
a report to the Audit Committee.
Code of Conduct.

211
 Apollo Tyres Ltd
Annual Report 2022-23

No personnel of the Company has been denied adopted Integrated Reporting describing initiatives
access to the Audit Committee. undertaken by the Company for enhancing
stakeholders’ value in the long term. The report
No complaint under whistle blower policy has been on Integrated Reporting is provided in a separate
received during FY23. section forming part of this Annual Report.

(l) Policy to prevent and deal with sexual (o) Dividend Distribution Policy
harassment
The Company has formulated a Dividend
The Company is an equal employment opportunity Distribution Policy in compliance of Regulations
employer and is committed to creating a healthy 43A of Listing Regulations which, inter alia, specifies
and productive work environment that enables the external and internal factors including financial
employees to work without fear of prejudice, parameters that shall be considered while declaring
gender bias and sexual harassment. The Company dividend and the circumstances under which the
believes that an act of sexual harassment results in shareholders of the Company may or may not
the violation of the fundamental rights. Such acts expect dividend. Dividend Distribution Policy is
violate the right to equality, right to life and to live available on the website of the Company.
with dignity and right to practice any profession or
to carry on any occupation, trade or business, which Refer link: https://corporate.apollotyres.com/
also includes a right to have a safe and healthy investors/corporate-governance/
work environment free from sexual harassment.
The dividend declared in last five years are as
In keeping with its belief and in terms of the Sexual follows:
Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and Rules Period Dividend (%)
thereof, the Company adopts the policy to prevent FY23* 450
and deal with sexual harassment at the workplace. FY22 325
The Company is committed to provide to all FY21 350
employees who are present at the workplace, a
FY20 300
work environment free from sexual harassment,
FY19 325
intimidation and exploitation.
* The Board of Directors at its meeting held on May 9, 2023 had
Status of the Complaint received relating to recommended the Final Dividend of H4.00 per Equity Share and
Sexual harrassment during FY23: a Special Dividend of H0.50 per Equity Share on occasion of 50th
Annual General Meeting (AGM) of the Company, aggregating to
H4.50 per Equity Share having face value of ₹1/- each.
No. of
Particulars
Complaints (p) Governance of Subsidiary Companies
Number of complaints filed Nil The Company has a well-established corporate
during the financial year governance framework to create sound governance
Number of complaints disposed N.A. practices and promote best practices for its various
off during the financial year Subsidiaries in multiple jurisdictions across the
Number of complaints pending N.A. world. The Company ensures that the governance
as on end of the financial year of Subsidiaries especially the material Subsidiaries
reflect the same values, ethics, controls and processes
The Company conduct, from time to time, the as being followed at the parent Company level.
awareness sessions on prevention of sexual
harassment at workplace for its employees. The Company maintains close relationship with
the Subsidiaries Board and regularly review and
(m) Succession Policy encourage regular feedback on the operation of
subsidiary governance framework. The Company
In terms with the Nomination & Remuneration Policy follows a fair, transparent and ethical governance
of the Company, the Nomination & Remuneration
practices for its overseas Subsidiaries which is
Committee reviews the succession policy from time
essential for achieving long term corporate goals
to time and assists the Board to ensure that the
and to enhance stakeholder's value.
plans are in place for succession for appointments
to the Board and to Senior Management. (q) Personal Data Protection and Privacy
Program
(n)Integrated Reporting
We have analysed the regulations, their
The Company being one of the top 500 Companies
applicability and impact on our organization and
in the Country in terms of market capitalization, has
have a roadmap to ensure we address any gaps

212
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

which require remediation to ensure compliance. (u)Shareholders Satisfaction Survey

We have updated our policies and various processes
to ensure compliance to the EU GDPR requirements. An online survey is posted on the Company’s
website at https://s3.eu-central-1.amazonaws.com/
(r) Total fee paid to Statutory Auditors on apolloproducts/3985/shareholder-satisfaction-
consolidated basis survey.pdf

An amount of ₹49.64 million was paid/ payable Shareholders who have not yet participated in the
to Statutory Auditors (excluding out of pocket survey can go to the above link and take part in the
expenses) for all services provided to the Company survey and provide us their valuable feedback.
and its Subsidiaries during FY23 on a consolidated
basis, to the Statutory Auditors and all entities (v) Industrial Relations
in the network firm/ network entity of which the
Statutory Auditor is a part. The Company maintained healthy, cordial and
harmonious industrial relations at all levels. The
(s) Name of the Debenture Trustee enthusiasm and unstinting efforts of employees
have enabled the Company to remain at the
Vistra ITCL (India) Limited leadership position in the industry. It has taken
various steps to improve productivity across
The IL&FS Financial Centre,
organization.
Plot C- 22, G Block, 7th Floor,
Bandra Kurla Complex,
Bandra (East), Mumbai - 400 051
Tel No. +91 22 26533535
Fax No. +91 22 26533297

(t) Web link for various documents

The weblink of the following documents/ information are available on the website of the Company, i.e. https://corporate.
apollotyres.com/:-

Particulars Web link

Familiarization programme for https://corporate.apollotyres.com/investors/corporate-governance/
Independent Directors
Policy for determining ‘material’ https://corporate.apollotyres.com/investors/corporate-governance/
subsidiaries
Policy on Related Party Transactions https://corporate.apollotyres.com/investors/corporate-governance/
CSR policy https://corporate.apollotyres.com/investors/corporate-governance/
Code of Conduct for Directors and Senior https://corporate.apollotyres.com/investors/corporate-governance/
Management
Whistle Blower Policy/ Vigil Mechanism https://corporate.apollotyres.com/investors/corporate-governance/
Policy on preservation and archival of https://corporate.apollotyres.com/investors/corporate-governance/
documents
Policy on determination of materiality of https://corporate.apollotyres.com/investors/corporate-governance/
events or information
Code of Practices and Procedures for Fair https://corporate.apollotyres.com/investors/corporate-governance/
Disclosure of UPSI

For and on behalf of the

Board of Directors

Place: Amsterdam ONKAR KANWAR

Date: May 9, 2023 Chairman
DIN: 00058921

213
 Apollo Tyres Ltd
Annual Report 2022-23

Independent Auditor’s Report on compliance with the conditions of

Corporate Governance as per provisions of Chapter IV of Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended

The Members of
Apollo Tyres Limited

1. The Corporate Governance Report prepared by Apollo 6. We have complied with the relevant applicable
Tyres Limited (hereinafter the “Company”), contains requirements of the Standard on Quality Control (SQC)
details as specified in regulations 17 to 27, clauses (b) 1, Quality Control for Firms that Perform Audits and
to (i) and (t) of sub – regulation (2) of regulation 46 Reviews of Historical Financial Information, and Other
and para C, D, and E of Schedule V of the Securities Assurance and Related Services Engagements.
and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as 7. The procedures selected depend on the auditor’s
amended (“the Listing Regulations”) (‘Applicable judgement, including the assessment of the risks
criteria’) for the year ended March 31, 2023 as required associated in compliance of the Corporate Governance
by the Company for annual submission to the Stock Report with the applicable criteria. Summary of
exchange. procedures performed include:

i. Read and understood the information prepared

Management’s Responsibility by the Company and included in its Corporate
Governance Report;
2. The preparation of the Corporate Governance Report
is the responsibility of the Management of the ii. Obtained and verified that the composition of the
Company including the preparation and maintenance Board of Directors with respect to executive and
of all relevant supporting records and documents. This non-executive directors has been met throughout
responsibility also includes the design, implementation the reporting period;
and maintenance of internal control relevant to
the preparation and presentation of the Corporate iii. Obtained and read the Register of Directors as on
Governance Report. and verified that atleast one independent woman
director was on the Board of Directors throughout
3. The Management along with the Board of Directors the year;
are also responsible for ensuring that the Company
complies with the conditions of Corporate Governance iv. Obtained and read the minutes of the following
as stipulated in the Listing Regulations, issued by the committee meetings / other meetings held April 1,
Securities and Exchange Board of India. 2022 to March 31, 2023:

Auditor’s Responsibility (a) Board of Directors;

4. Pursuant to the requirements of the Listing Regulations, (b) Audit Committee;

our responsibility is to provide a reasonable assurance
(c) Annual General Meeting (AGM);
in the form of an opinion whether, the Company has
complied with the conditions of Corporate Governance (d) Nomination and Remuneration Committee;
as specified in the Listing Regulations.
(e) Stakeholders Relationship Committee;
5. We conducted our examination of the Corporate
Governance Report in accordance with the Guidance (f) Risk Management Committee
Note on Reports or Certificates for Special Purposes
(g) Business Responsibility and Sustainability
and the Guidance Note on Certification of Corporate
(BRS) Committee;
Governance, both issued by the Institute of Chartered
Accountants of India (“ICAI”). The Guidance Note on (h) Corporate Social Responsibility (CSR)
Reports or Certificates for Special Purposes requires Committee;
that we comply with the ethical requirements of the
Code of Ethics issued by ICAI.

214
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

v. Obtained necessary declarations from the directors Other matters and Restriction on Use
of the Company.
10. This report is neither an assurance as to the future
vi. Obtained and read the policy adopted by the viability of the Company nor the efficiency or
Company for related party transactions. effectiveness with which the management has
conducted the affairs of the Company.
vii. Obtained the schedule of related party transactions
during the year and balances at the year-end. 11. This report is addressed to and provided to the
Obtained and read the minutes of the audit members of the Company solely for the purpose of
committee meeting where in such related party enabling it to comply with its obligations under the
transactions have been pre-approved prior by the Listing Regulations with reference to compliance with
audit committee. the relevant regulations of Corporate Governance and
should not be used by any other person or for any other
viii. Performed necessary inquiries with the
purpose. Accordingly, we do not accept or assume any
management and also obtained necessary specific
liability or any duty of care or for any other purpose or
representations from management.
to any other party to whom it is shown or into whose
8. The above-mentioned procedures include examining hands it may come without our prior consent in writing.
evidence supporting the particulars in the Corporate We have no responsibility to update this report for
Governance Report on a test basis. Further, our scope events and circumstances occurring after the date of
of work under this report did not involve us performing this report.
audit tests for the purposes of expressing an opinion
on the fairness or accuracy of any of the financial
information or the financial statements of the Company
taken as a whole.
For S.R. Batliboi & Co. LLP
Chartered Accountants
Opinion
ICAI Firm Registration Number: 301003E/E300005
9. Based on the procedures performed by us, as referred
in paragraph 7 above, and according to the information per Pankaj Chadha
and explanations given to us, we are of the opinion
Partner
that the Company has complied with the conditions
of Corporate Governance as specified in the Listing Place of Signature: Membership Number: 091813
Regulations, as applicable for the year ended March 31, Gurugram UDIN: 23091813BGQOXM2703
2023, referred to in paragraph 4 above. Date: May 09, 2023

215
 Apollo Tyres Ltd
Annual Report 2022-23

Annexure-A
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) Regulations, 2015)

To,
The Members of
APOLLO TYRES LIMITED
3rd Floor, Areekal Mansion, Panampilly Nagar
Kochi, Ernakulam, Kerala-682036

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of APOLLO TYRES
LIMITED having CIN: L25111KL1972PLC002449 and having registered office at Apollo Tyres Limited, 3rd Floor, Areekal Mansion,
Panampilly Nagar, Kochi, Ernakulam, Kerala-682036 (hereinafter referred to as ‘the Company’), produced before us by the
Company 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.

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 Directors, we hereby certify that none of the Directors on the Board of the Company as stated below for the
Financial Year ending on March 31, 2023, have been debarred or disqualified from being appointed or continuing as Directors of
Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

Date of
S. Initial Date of
DIN Name of Director Appointment in Current Term
No. Appointment
(incl. date of re-appointment)
1. 00058921 Mr. Onkar Kanwar 03/06/1982 -
2. 00058951 Mr. Neeraj Singh Kanwar 28/05/1999 -
3. 00010630 Mr. Akshaykumar Narendrasinhji Chudasama 11/11/2013 06/08/2019
4. 00041197 Mr. Vikram Singh Mehta 06/02/2013 06/08/2019
5. 00058859 Mr. Sunam Sarkar 28/01/2004 -
6. 00178792 Mr. Robert Friedrich Johannes Adolf Steinmetz 10/09/1999 -
7. 00013580 Ms. Pallavi Shardul Shroff 15/05/2014 15/05/2019
8. 07259060 Mr. Bikram Singh 11/08/2015 11/08/2020
9. 07413105 Mr. Francesco Gori 09/02/2016 -
10. 00041867 Mr. Vinod Rai 09/02/2016 09/02/2021
11. 07527148 Mr. Satish Sharma 01/04/2019 -
12. 00935998 Mr. Francesco Crispino 03/07/2020 -
13. 01035771 Mr. Vishal Kashyap Mahadevia 21/08/2020 -
14. 09329003 Ms. Lakshmi Puri 29/10/2021 -
15. 07274047 Dr. Jaimini Bhagwati 02/02/2023 -

Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an
assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has
conducted the affairs of the Company.

For PI & Associates,

Company Secretaries

Ankit Singhi
Partner
FCS No.: 11685
C P No.: 16274
Date: 09.05.2023 Peer Review No.: 1498/2021
Place: New Delhi UDIN: F011685E000281438

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Annexure-B
CEO AND CFO CERTIFICATE
[Under Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

The Board of Directors

Apollo Tyres Ltd
No. 7, Apollo House,
Institutional Area, Sector- 32,
Gurugram, Haryana -122001

We hereby certify that :-

a) We have reviewed the financial statements including the cash flow statement of the Company for the year ended as on
March 31, 2023 and that to the best of our knowledge and belief :

i these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;

ii these statements including cash flow statement present a true and fair view of the Company’s affairs and are in
compliance with existing accounting standards, applicable laws and regulations.

b) To the best of our knowledge and belief, there are no transactions entered into by the Company during the year which
are fraudulent, illegal or violative of the Company’s code of conduct.

c) We accept the responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting. Further, no
deficiencies have been observed in design or operation of such internal controls for the period covered by this report.

d) During the period under review, no significant changes were observed in the internal controls over financial reporting and
accounting policies of the Company. Furthermore, no instance of fraud found by management or employees having a
significant role in the company’s internal control system over financial reporting.

For Apollo Tyres Ltd

(Neeraj Kanwar) (Gaurav Kumar)

Date: April 28, 2023 Vice Chairman & Managing Director Chief Financial Officer

217
 Standalone
Independent Auditor’s Report ........... 219
Balance Sheet ..................................... 228
Statement of Profit and Loss ............. 229
Statement of Changes in Equity ....... 230
Cash Flow Statement ......................... 232
Notes Forming Part of the
Financial Statements ......................... 234

Consolidated

Financial
Independent Auditor’s Report ........... 301
Balance Sheet ..................................... 310
Statement of Profit and Loss ............. 311

Statements
Statement of Changes in Equity ....... 312
Cash Flow Statement ......................... 313
Notes Forming Part of the
Financial Statements ......................... 315
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Independent Auditor’s Report

To the Members of Apollo Tyres Limited

Report on the Audit of the Standalone Financial the ‘Code of Ethics’ issued by the Institute of Chartered
Statements Accountants of India together with the ethical requirements
that are relevant to our audit of the financial statements
under the provisions of the Act and the Rules thereunder,
Opinion and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics.
We have audited the accompanying standalone financial
We believe that the audit evidence we have obtained is
statements of Apollo Tyres Limited (“the Company”),
sufficient and appropriate to provide a basis for our audit
which comprise the Balance sheet as at March 31, 2023,
opinion on the standalone financial statements.
the Statement of Profit and Loss, including the statement
of Other Comprehensive Income, the Cash Flow Statement Key Audit Matters
and the Statement of Changes in Equity for the year then
ended, and notes to the standalone financial statements, Key audit matters are those matters that, in our professional
including a summary of significant accounting policies and judgment, were of most significance in our audit of the
other explanatory information. standalone financial statements for the financial year
ended March 31, 2023. These matters were addressed in the
In our opinion and to the best of our information and according context of our audit of the standalone financial statements
to the explanations given to us, the aforesaid standalone as a whole, and in forming our opinion thereon, and we do
financial statements give the information required by the not provide a separate opinion on these matters. For each
Companies Act, 2013, as amended (“the Act”) in the manner matter below, our description of how our audit addressed
so required and give a true and fair view in conformity with the matter is provided in that context.
accounting principles generally accepted in India, of the state
of affairs of the Company as at March 31, 2023, its profit We have determined the matters described below to be
including other comprehensive income, its cash flows and the the key audit matters to be communicated in our report.
changes in equity for the year ended on that date. We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the standalone
Basis for Opinion financial statements section of our report, including in
relation to these matters. Accordingly, our audit included
We conducted our audit of the standalone financial
the performance of procedures designed to respond to our
statements in accordance with the Standards on Auditing
assessment of the risks of material misstatement of the
(SAs), as specified under section 143(10) of the Act.
standalone financial statements. The results of our audit
Our responsibilities under those Standards are further
procedures, including the procedures performed to address
described in the ‘Auditor’s Responsibilities for the Audit of
the matters below, provide the basis for our audit opinion on
the Standalone Financial Statements’ section of our report.
the accompanying standalone financial statements.
We are independent of the Company in accordance with

Key audit matters How our audit addressed the key audit matter
Provision for sales related obligations (as described in Note B7, B14 and B20 of the standalone financial statements)
The Company provides various incentives, discounts and Our audit procedures included the following:
warranty to its customers. These sales related obligations
• Evaluated the design and tested the operating
require accruals based on the commitments, established
effectiveness of controls in respect of accounting of
trade practices, historical trends and other assumptions
these obligations.
which are inherently judgmental including those relating to
outflow of resources. The accruals amount to H 6,585 Million • Obtained from the management a list of documents
as at March 31, 2023. supporting commitments made to the customers;
• Tested on sample basis expenses for obligations recorded
Considering the materiality of above matter to the
during the year.
financial statements, complexities and significant
judgement involved in making the above estimate, we have • Evaluated reasonableness of year end accrual through
identified this as a key audit matter for the current year testing of the underlying data and assumptions involved
audit on a sample basis and assessed the relevance and
reliability of underlying data.
• Assessed the adequacy of disclosures made in the
standalone financial statements.

219
 Apollo Tyres Ltd
Annual Report 2022-23

Key audit matters How our audit addressed the key audit matter
Tax litigations and claims (as described in Note C12 of the standalone financial statements)
The Company has many outstanding tax related litigations Our audit procedures included the following:
and claims with tax authorities.
• Evaluated the design and tested the operating
Evaluation of the outcome of these matters requires effectiveness of controls in respect of the identification
significant judgement by the management given the and evaluation of taxation related demands,
complexities involved, including estimations in assessing the proceedings, investigations and related provisions.
likelihood that a pending claim will succeed, or a liability • Obtained a list of taxation related litigations and
will arise, and the quantification of the ranges of potential claims from the management and identified material
financial settlement. litigations/claims.
Accordingly, we have identified this as a key audit matter • In relation to such identified material litigations/ claims,
for the current year audit. involved tax specialists to perform an assessment of the
conclusions reached by management.
• Obtained independent confirmations from the
Company’s external lawyers/advisors with respect to the
material litigations and demands, wherever involved.
• Evaluated the reasonableness of management’s
assumptions, estimates and judgments by testing the
underlying documents and assessments shared by the
management for material litigation matters.
• Assessed the adequacy of disclosures made in the
standalone financial statements.

Other Information financial statements that give a true and fair view of the
financial position, financial performance including other
The Company’s Board of Directors is responsible for the comprehensive income, cash flows and changes in equity of
other information. The other information comprises the Company in accordance with the accounting principles
the information included in the Report on Corporate generally accepted in India, including the Indian Accounting
Governance, Business Responsibility and Sustainability Standards (Ind AS) specified under section 133 of the Act
Report, Management Discussion and Analysis and Director’s read with the Companies (Indian Accounting Standards)
Report, but does not include the standalone financial Rules, 2015, as amended. This responsibility also includes
statements and our auditor’s report thereon. maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the
Our opinion on the standalone financial statements does
assets of the Company and for preventing and detecting
not cover the other information and we do not express any
frauds and other irregularities; selection and application
form of assurance conclusion thereon.
of appropriate accounting policies; making judgments and
In connection with our audit of the standalone financial estimates that are reasonable and prudent; and the design,
statements, our responsibility is to read the other information implementation and maintenance of adequate internal
and, in doing so, consider whether such other information is financial controls, that were operating effectively for
materially inconsistent with the financial statements or ensuring the accuracy and completeness of the accounting
our knowledge obtained in the audit or otherwise appears records, relevant to the preparation and presentation of the
to be materially misstated. If, based on the work we have standalone financial statements that give a true and fair
performed, we conclude that there is a material misstatement view and are free from material misstatement, whether due
of this other information, we are required to report that fact. to fraud or error.
We have nothing to report in this regard.
In preparing the standalone financial statements,
management is responsible for assessing the Company’s
Responsibilities of Management for the ability to continue as a going concern, disclosing, as
Standalone Financial Statements applicable, matters related to going concern and using the
going concern basis of accounting unless management either
The accompanying standalone financial statements have intends to liquidate the Company or to cease operations, or
been approved by the Company’s Board of Directors. has no realistic alternative but to do so.
The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect Those Board of Directors are also responsible for overseeing
to the preparation and presentation of these standalone the Company’s financial reporting process.

220
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Auditor’s Responsibilities for the Audit of the disclosures, and whether the standalone financial
Standalone Financial Statements statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole We communicate with those charged with governance
are free from material misstatement, whether due to fraud regarding, among other matters, the planned scope and
or error, and to issue an auditor’s report that includes our timing of the audit and significant audit findings, including
opinion. Reasonable assurance is a high level of assurance, any significant deficiencies in internal control that we
but is not a guarantee that an audit conducted in accordance identify during our audit.
with SAs will always detect a material misstatement when it
We also provide those charged with governance with a
exists. Misstatements can arise from fraud or error and are
statement that we have complied with relevant ethical
considered material if, individually or in the aggregate, they
requirements regarding independence, and to communicate
could reasonably be expected to influence the economic
with them all relationships and other matters that may
decisions of users taken on the basis of these standalone
reasonably be thought to bear on our independence, and
financial statements.
where applicable, related safeguards.
As part of an audit in accordance with SAs, we exercise
From the matters communicated with those charged with
professional judgment and maintain professional skepticism
governance, we determine those matters that were of
throughout the audit. We also:
most significance in the audit of the standalone financial
• Identify and assess the risks of material misstatement statements for the financial year ended March 31, 2023
of the standalone financial statements, whether due and are therefore the key audit matters. We describe these
to fraud or error, design and perform audit procedures matters in our auditor’s report unless law or regulation
responsive to those risks, and obtain audit evidence precludes public disclosure about the matter or when, in
that is sufficient and appropriate to provide a basis extremely rare circumstances, we determine that a matter
for our opinion. The risk of not detecting a material should not be communicated in our report because the
misstatement resulting from fraud is higher than for adverse consequences of doing so would reasonably be
one resulting from error, as fraud may involve collusion, expected to outweigh the public interest benefits of such
forgery, intentional omissions, misrepresentations, or communication.
the override of internal control.

• Obtain an understanding of internal control relevant to

Other Matter
the audit in order to design audit procedures that are The financial statements of the Company for the year
appropriate in the circumstances. Under section 143(3) ended March 31, 2022, included in these standalone financial
(i) of the Act, we are also responsible for expressing statements, have been audited by the predecessor auditor
our opinion on whether the Company has adequate who expressed an unmodified opinion on those statements
internal financial controls with reference to financial on May 12, 2022.
statements in place and the operating effectiveness of
such controls.
Report on Other Legal and Regulatory
• Evaluate the appropriateness of accounting policies Requirements
used and the reasonableness of accounting estimates
and related disclosures made by management. 1. As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”), issued by the Central Government
• Conclude on the appropriateness of management’s use of India in terms of sub-section (11) of section 143 of the
of the going concern basis of accounting and, based Act, based on our audit we give in the “Annexure 1” a
on the audit evidence obtained, whether a material statement on the matters specified in paragraphs 3 and
uncertainty exists related to events or conditions 4 of the Order.
that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude 2. As required by Section 143(3) of the Act, we report that:
that a material uncertainty exists, we are required to
(a) We have sought and obtained all the information
draw attention in our auditor’s report to the related
and explanations which to the best of our knowledge
disclosures in the financial statements or, if such
and belief were necessary for the purposes of our
disclosures are inadequate, to modify our opinion. Our
audit;
conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future (b) In our opinion, proper books of account as required
events or conditions may cause the Company to cease by law have been kept by the Company so far as it
to continue as a going concern. appears from our examination of those books;
• Evaluate the overall presentation, structure and content (c) The Balance Sheet, the Statement of Profit and Loss
of the standalone financial statements, including the including the Statement of Other Comprehensive

221
 Apollo Tyres Ltd
Annual Report 2022-23

Income, the Cash Flow Statement and Statement writing or otherwise, that the Intermediary
of Changes in Equity dealt with by this Report are shall, whether, directly or indirectly lend or
in agreement with the books of account; invest in other persons or entities identified
in any manner whatsoever by or on behalf
(d) In our opinion, the aforesaid standalone financial of the Company (“Ultimate Beneficiaries”)
statements comply with the Indian Accounting or provide any guarantee, security or the
Standards (Ind AS) specified under Section 133 of like on behalf of the Ultimate Beneficiaries;
the Act, read with Companies (Indian Accounting
Standards) Rules, 2015, as amended; b) The management has represented that,
to the best of its knowledge and belief, no
(e) On the basis of the written representations received funds have been received by the Company
from the directors as on March 31, 2023 taken from any person(s) or entity(ies), including
on record by the Board of Directors, none of the foreign entities (“Funding Parties”), with
directors is disqualified as on March 31, 2023 from the understanding, whether recorded in
being appointed as a director in terms of Section writing or otherwise, that the Company
164 (2) of the Act; shall, whether, directly or indirectly,
lend or invest in other persons or entities
(f) With respect to the adequacy of the internal
identified in any manner whatsoever by or
financial controls with reference to these
on behalf of the Funding Party (“Ultimate
standalone financial statements and the operating
Beneficiaries”) or provide any guarantee,
effectiveness of such controls, refer to our separate
security or the like on behalf of the
Report in “Annexure 2” to this report;
Ultimate Beneficiaries; and
(g) In our opinion, the managerial remuneration for the
c) Based on such audit procedures performed
year ended March 31, 2023 has been paid / provided
that have been considered reasonable and
by the Company to its directors in accordance with
appropriate in the circumstances, nothing
the provisions of section 197 read with Schedule V to
has come to our notice that has caused
the Act; and
us to believe that the representations
(h) With respect to the other matters to be included in under sub-clause (a) and (b) contain any
the Auditor’s Report in accordance with Rule 11 of material misstatement.
the Companies (Audit and Auditors) Rules, 2014,
v. The final dividend paid by the Company during
as amended in our opinion and to the best of our
the year in respect of the same declared for the
information and according to the explanations
previous year is in accordance with section 123
given to us:
of the Act to the extent it applies to payment
i. The Company has disclosed the impact of of dividend.
pending litigations on its financial position in its
As stated in Note C20 to the standalone
standalone financial statements – Refer Note
financial statements, the Board of Directors
C12 to the standalone financial statements;
of the Company have proposed final dividend
ii. The Company has made provision, as required for the year which is subject to the approval
under the applicable law or accounting of the members at the ensuing Annual
standards, for material foreseeable losses, General Meeting. The dividend declared is in
if any, on long-term contracts including accordance with section 123 of the Act to the
derivative contracts – Refer Note C9 to the extent it applies to declaration of dividend.
standalone financial statements;
vi. As proviso to Rule 3(1) of the Companies
iii. There has been no delay in transferring (Accounts) Rules, 2014 is applicable for the
amounts, required to be transferred, to the Company only w.e.f. April 1, 2023, reporting
Investor Education and Protection Fund by the under this clause is not applicable.
Company;
For S.R. Batliboi & Co. LLP
iv. a) The management has represented that, Chartered Accountants
to the best of its knowledge and belief ICAI Firm Registration Number: 301003E/E300005
no funds have been advanced or loaned
or invested (either from borrowed funds per Pankaj Chadha
or share premium or any other sources or Partner
kind of funds) by the Company to or in any Membership Number: 091813
other person(s) or entity(ies), including UDIN: 23091813BGQOXN9364
foreign entities (“Intermediaries”), with Place: Gurugram
the understanding, whether recorded in Date: May 9, 2023

222
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Annexure ‘1’ referred to in paragraph under the heading “Report on other legal and regulatory
requirements” of our report of even date

Re: Apollo Tyres Limited (the “Company”) (ii) (b) As disclosed in note B13 to the financial statements,
the Company has been sanctioned working capital
In terms of the information and explanations limits in excess of H five crores in aggregate from
sought by us and given by the company and the banks and financial institutions during the year
books of account and records examined by us in on the basis of security of current assets of the
the normal course of audit and to the best of our Company. Based on the records examined by
knowledge and belief, we state that: us in the normal course of audit of the financial
statements, the quarterly returns/statements filed
(i) (a) (A) The Company has maintained proper records by the Company with such banks and financial
showing full particulars, including quantitative institutions are in agreement with the audited
details and situation of Property, Plant and books of accounts of the Company.
Equipment.
(iii) (a) During the year the Company has provided
(i) (a) (B) The Company has maintained proper records advances in the nature of loans to employees and
showing full particulars of intangibles assets. stood guarantee to company as follows:

(i) (b) All Property, Plant and Equipment were physically Advances
verified by the management in the previous year in Guarantees in nature of
accordance with a planned programme of verifying (H million) loans
them once in three years which is reasonable having (H million)
regard to the size of the Company and the nature of
Aggregate amount
its assets. No material discrepancies were noticed
of loan granted/
on such verification.
provided during the
(i) (c) The title deeds of immovable properties (other than year
properties where the Company is the lessee and - Subsidiaries 1,471 Nil
the lease agreements are duly executed in favour - Employees Nil 21
of the lessee) disclosed in note B1 to the financial Balance outstanding
statements held in the name of the Company except as at balance sheet
freehold land acquired through the agreement to date in respect of
sale executed between the Company and Andhra - Subsidiaries 1,471 Nil
Pradesh government dated March 13, 2018 and July - Employees Nil 32
26, 2019.
During the year the Company has not provided
(i) (d) The Company has not revalued its Property, loans or provided security to companies, firms,
Plant and Equipment (including Right of use Limited Liability Partnerships or any other parties.
assets) or intangible assets during the year ended
(iii) (b) During the year the guarantees provided and the
March 31, 2023.
terms and conditions of the grant of all advances
(i) (e) There are no proceedings initiated or are pending in the nature of loans to employees and guarantees
against the Company for holding any benami to companies are not prejudicial to the Company's
property under the Prohibition of Benami Property interest. The Company has not made investments
Transactions Act, 1988 and rules made thereunder. and granted any loans during the year.

(ii) (a) The inventory has been physically verified by the (iii) (c) The Company has granted advance in the nature
management during the year except for inventories of loans during the year to employees where the
lying with third parties. In our opinion, the frequency schedule of repayment of principal and payment of
of verification by the management is reasonable interest has been stipulated and the repayment or
and the coverage and procedure of such verification receipts are regular. The Company has not granted
is appropriate. Discrepancies of 10% or more in any other loans.
aggregate for each class of inventory were not
(iii) (d) There are no amounts of advances in the nature
noticed on such physical verification. Inventories
of loans granted to employees which are overdue
lying with third parties have been confirmed by
for more than ninety days. The Company has not
them as at March 31, 2023 and discrepancies of 10%
granted any other loans.
or more in aggregate for each class of inventory
were not noticed in respect of such confirmations.

223
 Apollo Tyres Ltd
Annual Report 2022-23

(iii) (e) There were no advance in the nature of loan granted to the extent applicable. Accordingly, the requirement
to employees which was fallen due during the year, to report on clause 3(v) of the Order is not applicable to
that have been renewed or extended or fresh loans the Company.
granted to settle the overdues of existing loans
given to the same parties. The Company has not (vi) We have broadly reviewed the books of account
granted any other loans. maintained by the Company pursuant to the rules made
by the Central Government for the maintenance of cost
(iii) (f) The Company has not granted any loans or records under section 148(1) of the Companies Act, 2013,
advances in the nature of loans, either repayable on related to the manufacture Tyres & tubes, and are of
demand or without specifying any terms or period the opinion that prima facie, the specified accounts and
of repayment to companies, firms, Limited Liability records have been made and maintained. We have not,
Partnerships or any other parties. Accordingly, however, made a detailed examination of the same.
the requirement to report on clause 3(iii)(f) of the
Order is not applicable to the Company. (vii) (a) The Company is regular in depositing with
appropriate authorities undisputed statutory
(iv) Loans, investments, guarantees and security in respect dues including provident fund, employees’ state
of which provisions of sections 185 and 186 of the insurance, income-tax, duty of customs, goods and
Companies Act, 2013 are applicable have been complied service tax, cess and other statutory dues applicable
with by the Company. to it. According to the information and explanations
given to us and based on audit procedures performed
(v) The Company has neither accepted any deposits from by us, no undisputed amounts payable in respect of
the public nor accepted any amounts which are deemed these statutory dues were outstanding, at the year
to be deposits within the meaning of sections 73 to 76 end, for a period of more than six months from the
of the Companies Act and the rules made thereunder, date they became payable.

(vii) (b) The dues of goods and services tax, provident fund, employees’ state insurance, income-tax, sales-tax, service tax,
duty of custom, duty of excise, value added tax, cess, and other statutory dues have not been deposited on account
of any dispute, are as follows:

Amount* Period to which the Forum where dispute is

Name of the statute Nature of dues
(J million) amount relates pending
Sales Tax Act applicable Sales tax 65.23 1992-93 to 2022-23 Various appellate authorities/
to various states Revenue board/ High Court
Central Excise Act, Excise duty, Custom 588.66 2002-03 to 2017-18 Various appellate authorities/
1944/ Customs Act, 1962 duty and additional Supreme Court
excise duty
Finance Act, 1994 Service Tax 507.76 2004-05 to 2017-18 Various appellate authorities
Income-tax Act, 1961 Income tax 1,179.53 1990-91 to 2017-18 Various appellate authorities/
High Court
* The amounts are net of deposits made by the Company under protest

(viii) The Company has not surrendered or disclosed any raised on short-term basis have been used for long-
transaction, previously unrecorded in the books of term purposes by the Company.
account, in the tax assessments under the Income Tax
Act, 1961 as income during the year. Accordingly, the (ix) (e) On an overall examination of the standalone
requirement to report on clause 3(viii) of the Order is financial statements of the Company, the Company
not applicable to the Company. has not taken any funds from any entity or person
on account of or to meet the obligations of its
(ix) (a) The Company has not defaulted in repayment subsidiaries, associates or joint ventures.
of loans or other borrowings or in the payment of
(ix) (f) The Company has not raised loans during the year
interest thereon to any lender.
on the pledge of securities held in its subsidiaries,
(ix) (b) The Company has not been declared wilful defaulter joint ventures or associate companies. Hence, the
by any bank or financial institution or government requirement to report on clause (ix)(f) of the Order
or any government authority. is not applicable to the Company.

(ix) (c) Term loans were applied for the purpose for which (x) (a) The Company has utilized the monies raised during
the loans were obtained. the year by way of initial public offer / further public
offer (including debt instruments) in the nature of
(ix) (d) On an overall examination of the standalone Non-Convertible Debenture for the purposes for
financial statements of the Company, no funds which they were raised.

224
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

(x) (b) The Company has not made any preferential (xvi) (d) There are no other Companies part of the Group,
allotment or private placement of shares /fully hence, the requirement to report on clause 3(xvi)
or partially or optionally convertible debentures (d) of the Order is not applicable to the Company.
during the year under audit and hence, the
requirement to report on clause 3(x)(b) of the (xvii) The Company has not incurred cash losses in the
Order is not applicable to the Company. current year and in the immediately preceding financial
year.
(xi) (a) No fraud by the Company or no fraud on the
Company has been noticed or reported during the (xviii) There has been no resignation of the statutory
year. auditors during the year and accordingly requirement
to report on Clause 3(xviii) of the Order is not applicable
(xi) (b) During the year, no report under sub-section (12) to the Company.
of section 143 of the Companies Act, 2013 has been
filed by cost auditor/ secretarial auditor or by (xix) On the basis of the financial ratios disclosed in note
us in Form ADT – 4 as prescribed under Rule 13 of C26 to the financial statements, ageing and expected
Companies (Audit and Auditors) Rules, 2014 with dates of realization of financial assets and payment of
the Central Government. financial liabilities, other information accompanying
the financial statements, our knowledge of the Board
(xi) (c) As represented to us by the management, there of Directors and management plans and based on
are no whistle blower complaints received by the our examination of the evidence supporting the
Company during the year. assumptions, nothing has come to our attention, which
causes us to believe that any material uncertainty
(xii) The Company is not a Nidhi Company as per the exists as on the date of the audit report that Company
provisions of the Companies Act, 2013. Therefore, the is not capable of meeting its liabilities existing at the
requirement to report on clause 3(xii)(a), (b) and (c ) of date of balance sheet as and when they fall due within
the Order is not applicable to the Company. a period of one year from the balance sheet date. We,
however, state that this is not an assurance as to the
(xiii) Transactions with the related parties are in compliance
future viability of the Company. We further state that
with sections 177 and 188 of Companies Act, 2013
our reporting is based on the facts up to the date of
where applicable and the details have been disclosed
the audit report and we neither give any guarantee
in the notes to the standalone financial statements, as
nor any assurance that all liabilities falling due within a
required by the applicable accounting standards.
period of one year from the balance sheet date, will get
(xiv) (a) The company has an internal audit system discharged by the Company as and when they fall due.
commensurate with the size and nature of its
(xx) (a) In respect of other than ongoing projects, there
business.
are no unspent amounts that are required to be
(xiv) (b) The internal audit reports of the Company issued transferred to a fund specified in Schedule VII of
till the date of the audit report, for the period under the Companies Act (the Act), in compliance with
audit have been considered by us. second proviso to sub section 5 of section 135 of the
Act. This matter has been disclosed in note C16 to
(xv) The Company has not entered into any non-cash the financial statements.
transactions with its directors or persons connected with
its directors and hence requirement to report on clause (xx) (b) There are no unspent amounts in respect of ongoing
3(xv) of the Order is not applicable to the Company. projects, that are required to be transferred to
a special account in compliance of provision of
(xvi) (a) The provisions of section 45-IA of the Reserve Bank sub section (6) of section 135 of Companies Act.
of India Act, 1934 (2 of 1934) are not applicable This matter has been disclosed in note C16 to the
to the Company. Accordingly, the requirement financial statements.
to report on clause (xvi)(a) of the Order is not
applicable to the Company.

(xvi) (b) The Company is not engaged in any Non-Banking For S.R. Batliboi & Co. LLP
Financial or Housing Finance activities. Accordingly, Chartered Accountants
the requirement to report on clause (xvi)(b) of the ICAI Firm Registration Number: 301003E/E300005
Order is not applicable to the Company.
per Pankaj Chadha
(xvi) (c) The Company is not a Core Investment Company Partner
as defined in the regulations made by Reserve Bank Membership Number: 091813
of India. Accordingly, the requirement to report on UDIN: 23091813BGQOXN9364
clause 3(xvi)(c) of the Order is not applicable to the Place: Gurugram
Company. Date: May 9, 2023

225
 Apollo Tyres Ltd
Annual Report 2022-23

Annexure ‘2’
Statements of Apollo Tyres Limted
to the Independent Auditor’s Report of even date on the Standalone Financial

Report on the Internal Financial Controls under Our audit involves performing procedures to obtain audit
Clause (i) of Sub-section 3 of Section 143 of the evidence about the adequacy of the internal financial controls
Companies Act, 2013 (“the Act”) with reference to these standalone financial statements and
their operating effectiveness. Our audit of internal financial
We have audited the internal financial controls with controls with reference to standalone financial statements
reference to standalone financial statements of Apollo Tyres included obtaining an understanding of internal financial
Limited (“the Company”) as of March 31, 2023 in conjunction controls with reference to these standalone financial
with our audit of the standalone financial statements of the statements, assessing the risk that a material weakness
Company for the year ended on that date. exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgement,
Management’s Responsibility for Internal
including the assessment of the risks of material misstatement
Financial Controls of the financial statements, whether due to fraud or error.
The Company’s Management is responsible for establishing
We believe that the audit evidence we have obtained is
and maintaining internal financial controls based on the
sufficient and appropriate to provide a basis for our audit
internal control over financial reporting criteria established
opinion on the Company’s internal financial controls with
by the Company considering the essential components of
reference to these standalone financial statements.
internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India (“ICAI”). Meaning of Internal Financial Controls With
These responsibilities include the design, implementation Reference to these Standalone Financial
and maintenance of adequate internal financial controls Statements
that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence to A company's internal financial controls with reference to
the Company’s policies, the safeguarding of its assets, the standalone financial statements is a process designed to
prevention and detection of frauds and errors, the accuracy provide reasonable assurance regarding the reliability
and completeness of the accounting records, and the timely of financial reporting and the preparation of financial
preparation of reliable financial information, as required statements for external purposes in accordance with
under the Companies Act, 2013. generally accepted accounting principles. A company's
internal financial controls with reference to standalone
financial statements includes those policies and procedures
Auditor’s Responsibility that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the
Our responsibility is to express an opinion on the Company's
transactions and dispositions of the assets of the company;
internal financial controls with reference to these standalone
(2) provide reasonable assurance that transactions are
financial statements based on our audit. We conducted our
recorded as necessary to permit preparation of financial
audit in accordance with the Guidance Note on Audit of
statements in accordance with generally accepted
Internal Financial Controls Over Financial Reporting (the
accounting principles, and that receipts and expenditures
“Guidance Note”) and the Standards on Auditing, as specified
of the company are being made only in accordance with
under section 143(10) of the Act, to the extent applicable to an
authorisations of management and directors of the
audit of internal financial controls, both issued by ICAI. Those
company; and (3) provide reasonable assurance regarding
Standards and the Guidance Note require that we comply
prevention or timely detection of unauthorised acquisition,
with ethical requirements and plan and perform the audit
use, or disposition of the company's assets that could have a
to obtain reasonable assurance about whether adequate
material effect on the financial statements.
internal financial controls with reference to these standalone
financial statements was established and maintained and if
such controls operated effectively in all material respects.

226
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Inherent Limitations of Internal Financial controls with reference to standalone financial statements
Controls With Reference to Standalone Financial were operating effectively as at March 31, 2023, based on the
Statements internal control over financial reporting criteria established by
the Company considering the essential components of internal
Because of the inherent limitations of internal financial control stated in the Guidance Note issued by the ICAI.
controls with reference to standalone financial statements,
including the possibility of collusion or improper
management override of controls, material misstatements
due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial
controls with reference to standalone financial statements
to future periods are subject to the risk that the internal For S.R. Batliboi & Co. LLP
financial control with reference to standalone financial Chartered Accountants
statements may become inadequate because of changes ICAI Firm Registration Number: 301003E/E300005
in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
per Pankaj Chadha
Opinion Partner
Membership Number: 091813
In our opinion, the Company has, in all material respects, UDIN: 23091813BGQOXN9364
adequate internal financial controls with reference to Place: Gurugram
standalone financial statements and such internal financial Date: May 9, 2023

227
 Apollo Tyres Ltd
Annual Report 2022-23

Balance Sheet
as at March 31, 2023
H Million
As at As at
Notes
March 31, 2023 March 31, 2022
A. ASSETS
1. Non-current assets
(a) Property, plant and equipment B1 113,012.02 112,462.68
(b) Capital work-in-progress C25 1,159.22 5,418.53
(c) Right of use assets C4 4,665.11 5,391.62
(d) Intangible assets B1 462.08 439.00
(e) Intangible assets under development C25 185.73 61.83
(f) Financial assets
i. Investments B2 24,213.61 24,146.60
ii. Other financial assets B3 4,019.87 3,828.55
(g) Other non-current assets B4 577.73 336.11
Total non-current assets 148,295.37 152,084.92
2. Current assets
(a) Inventories B5 22,768.68 24,638.92
(b) Financial assets
i. Investments B6 4,016.94 4,506.06
ii. Trade receivables B7 15,883.94 15,423.01
iii. Cash and cash equivalents B8 5,004.40 3,154.06
iv. Bank balances other than (iii) above B9 102.21 2,100.20
v. Other financial assets B10 2,365.44 2,140.01
(c) Other current assets B11 2,709.46 1,641.32
Total current assets 52,851.07 53,603.58
TOTAL ASSETS (1+2) 201,146.44 205,688.50
B. EQUITY AND LIABILITIES
1. Equity
(a) Share capital B12 635.10 635.10
(b) Other equity B12 (a) 98,363.93 94,549.64
Total equity 98,999.03 95,184.74
Liabilities
2. Non-current liabilities
(a) Financial liabilities
i. Borrowings B13 31,748.13 35,310.10
ii. Lease liability C4 4,006.33 4,666.99
(b) Provisions B14 492.96 490.44
(c) Deferred tax liabilities (net) C6 7,955.36 7,053.34
(d) Other non-current liabilities B15 2,609.70 3,957.37
Total non-current liabilities 46,812.48 51,478.24
3. Current Liabilities
(a) Financial liabilities
i. Borrowings B16 9,006.46 8,552.79
ii. Lease liability C4 931.02 849.36
iii. Trade payables B17
- Total outstanding dues of micro enterprises and small
306.28 337.63
enterprises
- Total outstanding dues of creditors other than micro
23,984.80 27,505.50
enterprises and small enterprises
iv. Other financial liabilities B18 4,006.50 4,634.99
(b) Other current liabilities B19 14,819.28 14,753.62
(c) Provisions B20 2,072.35 1,947.76
(d) Current tax liabilities (net) B21 208.24 443.87
Total current liabilities 55,334.93 59,025.52
TOTAL EQUITY AND LIABILITIES (1+2+3) 201,146.44 205,688.50
See accompanying notes forming part of the financial statements
As per our report of even date
For S.R. Batliboi & CO. LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No. 301003E/E300005 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman Vice Chairman & Director
Managing Director
per Pankaj Chadha DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 091813 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Place: Gurugram Place: Amsterdam Membership No - FCS 6690
Date: May 9, 2023 Date: May 9, 2023

228
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Statement of Profit and Loss

for the year ended March 31, 2023
H Million
For the year ended For the year ended
Notes
March 31, 2023 March 31, 2022
1. Revenue from operations:
Sale of products C27 168,899.09 143,067.87
Other operating income B22 4,111.10 3,426.17
173,010.19 146,494.04
2. Other income B23 751.26 1,268.96
3. Total income (1 +2) 173,761.45 147,763.00
4. Expenses :
(a) Cost of materials consumed B24A 106,937.72 94,937.71
(b) Purchase of stock-in-trade B24B 9,628.17 8,465.86
(c) Changes in inventories of finished goods, stock-in-trade and B25 455.54 (3,484.45)
work-in-progress
(d) Employee benefits expense B24C 10,259.15 10,240.18
(e) Finance costs B26 4,672.28 3,821.56
(f) Depreciation and amortisation expense B1 9,070.50 8,239.13
(g) Other expenses B24D 24,620.42 22,026.81
Total expenses 165,643.78 144,246.80
5. Profit before exceptional items and tax (3 - 4) 8,117.67 3,516.20
6. Exceptional items C28 - 12.68
7. Profit before tax (5 - 6) 8,117.67 3,503.52
8. Tax expense : C6
(a) Current tax expense 1,477.15 611.59
(b) Deferred tax 853.14 281.29
Total 2,330.29 892.88
9. Profit for the year (7 - 8) 5,787.38 2,610.64
10. Other comprehensive income
I i. Items that will not be reclassified to profit or loss
a. Re-measurement gain/ (loss) on defined benefit plans 76.37 (41.71)
ii. Income tax (26.69) 14.58
49.68 (27.13)
II i. Items that will be reclassified to profit or loss
a. Effective portion of gain/(loss) on designated portion of 63.50 151.36
hedging instruments in cash flow hedge
ii. Income tax (22.19) (52.89)
41.31 98.47
Other comprehensive (loss) (I + II) 90.99 71.34
Total comprehensive income for the year (9 + 10) 5,878.37 2,681.98
Earnings per share (of J 1 each) C29
(a) Basic (H) 9.11 4.11
(b) Diluted (H) 9.11 4.11

See accompanying notes forming part of the financial statements

As per our report of even date

For S.R. Batliboi & CO. LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No. 301003E/E300005 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman Vice Chairman & Director
Managing Director
per Pankaj Chadha DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 091813 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Place: Gurugram Place: Amsterdam Membership No - FCS 6690
Date: May 9, 2023 Date: May 9, 2023

229
230
Statement of Changes in Equity
for the year ended March 31, 2023

A. Equity Share Capital

H Million
Particulars Amount
Balance as at March 31, 2021 635.10
Changes during the year (refer note B12) -
Balance as at March 31, 2022 635.10
Changes during the year (refer note B12) -
Balance as at March 31, 2023 635.10

B. Other Equity
H Million
Items of other
Reserves and surplus Total
comprehensive income
Capital Capital Effective
Particulars Debenture Capital
Securities General reserve on Capital reserve on Retained portion of Revaluation
redemption redemption Total
premium reserve AMHPL subsidy forefeiture earnings cash flow surplus
reserve reserve
merger of shares hedge
Balance as at 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
Profit for the year 2,610.64 2,610.64
Effective portion of cash flow
98.47 98.47
hedge (net)
Remeasurements of the defined
(27.13) (27.13)
benefit plans (net)
Total comprehensive income for
2,583.51 98.47 2,681.98
the year
Transaction with owners in their
capacity as owners
Payment of dividend (H 3.50 per
(2,222.85) (2,222.85)
share)
Transfer from retained earnings 1,000.00 (1,000.00) -
Balance as at March 31, 2022 31,317.67 17,006.63 1,383.68 1,039.50 25.50 44.40 0.07 43,699.81 1.16 31.22 94,549.64
Annual Report 2022-23
Apollo Tyres Ltd
 Overview

Statement of Changes in Equity

for the year ended March 31, 2023
Corporate

B. Other Equity
H Million
Items of other
Reserves and surplus Total
comprehensive income
From our

Capital Capital Effective

Leadership

Particulars Debenture Capital

Securities General reserve on Capital reserve on Retained portion of Revaluation
redemption redemption Total
premium reserve AMHPL subsidy forefeiture earnings cash flow surplus
reserve reserve
merger of shares hedge
Profit for the Year 5,787.38 5,787.38
Effective portion of cash flow
41.31 41.31
Report

hedge (net)
Remeasurements of the defined
49.68 49.68
benefit plans (net)
ESG Performance

Total comprehensive income for

5,837.06 41.31 5,878.37
the year
Transaction with owners in their
capacity as owners
Payment of dividend
(2,064.08) (2,064.08)
(H 3.25 per share)
Management

Balance as at March 31, 2023 31,317.67 17,006.63 1,383.68 1,039.50 25.50 44.40 0.07 47,472.79 42.47 31.22 98,363.93
Discussion and Analysis

As per our report of even date

For S.R. Batliboi & CO. LLP For and on behalf of the Board of Directors
Reports
Statutory

Chartered Accountants
Firm's Registration No. 301003E/E300005 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman Vice Chairman & Director
Managing Director
per Pankaj Chadha DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 091813 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Financial
Statements

Place: Gurugram Place: Amsterdam Membership No - FCS 6690

Date: May 9, 2023 Date: May 9, 2023

231
 Apollo Tyres Ltd
Annual Report 2022-23

Standalone Cash Flow Statement

for the year ended March 31, 2023
H Million
For the year ended For the year ended
March 31, 2023 March 31, 2022
AUDITED AUDITED
A CASH FLOW FROM OPERATING ACTIVITIES
(i) Profit before tax 8,117.67 3,503.52
Add: Adjustments for:
Depreciation and amortisation expenses 9,070.50 8,239.13
Profit on sale of property, plant and equipment (net) (37.02) (81.39)
Gain from current investments (55.19) (24.15)
Unwinding of deferred income (2,266.57) (1,540.68)
Finance cost 4,672.28 3,821.56
Interest income (222.73) (396.60)
Unrealised loss / (gain) on foreign exchange 501.35 11,662.62 (132.66) 9,885.21
fluctuations
(ii) Operating profit before working capital changes 19,780.29 13,388.73
Changes in working capital
Adjustments for (increase) / decrease in operating
assets:
Inventories 1,870.24 (3,872.92)
Trade receivables (524.95) (3,596.88)
Other financial assets (current and non current) (427.91) 1,328.58
Other assets (current and non current) (1,070.43) (153.05) 761.04 (5,380.18)
Adjustments for increase / (decrease) in operating
liabilities:
Trade payables (3,585.62) 8,617.08
Other financial liabilities (current and non current) 76.04 (470.32)
Other liabilities (current and non current) 705.01 852.48
Provisions (current and non-current) 203.48 (2,601.09) 20.08 9,019.32
(iii)Cash generated from operations 17,026.15 17,027.87
Less: Direct taxes paid (net of refund) 1,712.78 875.59
Net cash generated from operating activities 15,313.37 16,152.28
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and intangible (5,230.91) (15,598.87)
assets
Proceeds from sale of property, plant and equipment 140.01 231.97
Maturity of / (Investments in) mutual funds, net 544.31 (3,581.23)
Non-current investment (made)/ matured, net (2.18) 0.77
Investment in Subsidiaries (64.83) (49.00)
Maturity of fixed deposits, net 2,000.00 9,650.00
Interest received 297.39 475.28
Net cash used in investing activities (2,316.21) (8,871.08)
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from non-current borrowings 5,000.00 14,000.00
(Repayment) of non-current borrowings (6,555.20) (14,599.08)
(Repayment of) / proceeds from current borrowings (net) (2,000.00) 1,000.00
(excluding current maturities of non-current borrowings)
Payment of dividend (2,064.08) (2,222.85)
Payment of principal portion of lease liabilities (948.99) (885.11)
Payment of interest on lease liabilities (414.32) (455.53)
Finance charges paid (4,169.81) (3,417.77)
Net cash used in financing activities (11,152.40) (6,580.34)

232
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Standalone Cash Flow Statement

for the year ended March 31, 2023

H Million
For the year ended For the year ended
March 31, 2023 March 31, 2022
AUDITED AUDITED
Net increase in cash and cash equivalents 1,844.76 700.86
Cash and cash equivalents as at the beginning of the year 3,154.06 2,258.12
Less: Cash credits as at the beginning of the year 4.18 4.85
Adjusted cash and cash equivalents as at beginning of 3,149.88 2,253.27
the year
Cash and cash equivalents as at the end of the year 5,004.40 3,154.06
Less: Cash credits as at the end of the year 9.76 4.18
Adjusted cash and cash equivalents as at the end of the 4,994.64 3,149.88
year

The above Cash flow statement has been prepared under the “Indirect Method” as set out in Indian Accounting Standard-7, “Statement of
Cash Flows”.

See accompanying notes forming part of the financial statements

As per our report of even date

For S.R. Batliboi & CO. LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No. 301003E/E300005 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman Vice Chairman & Director
Managing Director
per Pankaj Chadha DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 091813 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Place: Gurugram Place: Amsterdam Membership No - FCS 6690
Date: May 9, 2023 Date: May 9, 2023

233
 Apollo Tyres Ltd
Annual Report 2022-23

A. Notes
Forming Part of the Financial Statements

1 Corporate information This amendment had no impact on the financial

statements of the Company as there were no
The Company is a public Company domiciled in contingent assets, liabilities or contingent liabilities
India and is incorporated under the provisions of the within the scope of these amendment that arose
Companies Act applicable in India. Its shares are during the period.
listed on two recognised stock exchanges in India. The
registered office of the Company is Apollo Tyres ltd, (ii) Property, Plant and Equipment: Proceeds before
3rd Floor, Areekal mansion, Panampilly Nagar, Kochi Intended Use – amendment to Ind AS 16
682036, India.
The amendment modified paragraph 17(e) of Ind
The principal business activity of Apollo Tyres Limited AS 16 to clarify that excess of net sale proceeds of
('the Company') is manufacturing and sale of automotive items produced over the cost of testing, if any, shall
tyres. The Company started its operations in 1972 with its not be recognised in the statement of profit and loss
first manufacturing plant at Perambra in Kerala. but deducted from the directly attributable costs
considered as part of cost of an item of property,
The Company's largest operations are in India and plant, and equipment.
comprises five tyre manufacturing plants, two located
in Cochin and one each at Vadodara, Chennai and The amendment is effective for annual reporting
Andhra Pradesh and various sales and marketing offices periods beginning on or after 1 April 2022. This
spread across the country. The Company's European amendment had no impact on the consolidated
subsidiaries Apollo Tyres (NL) B.V and Apollo Tyres financial statements of the Company as there were
(Hungary) Kft. have a manufacturing plant in the no sales of such items produced by property, plant
Netherlands and Hungary respectively. It also has sales and equipment made available for use on or after
and marketing subsidiaries across the globe. the beginning of the earliest period presented.

(iii) Ind AS 109 Financial Instruments – Fees in the ’10 per

2 RECENT ACCOUNTING PRONOUNCEMENTS cent’ test for derecognition of financial liabilities

2.1 Amended standards adopted by the Company The amendment clarifies the fees that an entity
includes when assessing whether the terms of a
(i) Reference to the Conceptual Framework – new or modified financial liability are substantially
amendment to Ind AS 103 different from the terms of the original financial
liability. These fees include only those paid or
The amendment replaced the reference to the ICAI’s
received between the borrower and the lender,
“Framework for the Preparation and Presentation
including fees paid or received by either the
of Financial Statements under Indian Accounting
borrower or lender on the other’s behalf.
Standards” with the reference to the “Conceptual
Framework for Financial Reporting under Indian This amendment had no impact on the financial
Accounting Standard” without significantly statements of the Company as there were
changing its requirements. no modifications of the Company’s financial
instruments which were covered by amendment.
The amendment also added an exception to
the recognition principle of Ind AS 103 Business (iv) Onerous Contracts – Costs of Fulfilling a Contract –
Combinations to avoid the issue of potential ‘day 2’ amendment to Ind AS 37
gains or losses arising for liabilities and contingent
liabilities that would be within the scope of Ind AS An onerous contract is a contract under which the
37 Provisions, Contingent Liabilities and Contingent unavoidable of meeting the obligations under the
Assets or Appendix C, Levies, of Ind AS 37, if incurred contract costs (i.e., the costs that the Group cannot
separately. The exception requires entities to apply avoid because it has the contract) exceed the
the criteria in Ind AS 37 or Appendix C, Levies, of economic benefits expected to be received under it.
Ind AS 37, respectively, instead of the Conceptual
Framework, to determine whether a present The amendment specifies that when assessing
obligation exists at the acquisition date. whether a contract is onerous or loss-making, an
entity needs to include costs that relate directly to a
The amendment also adds a new paragraph to contract to provide goods or services including both
IFRS 3 to clarify that contingent assets do not incremental costs (e.g., the costs of direct labour
qualify for recognition at the acquisition date. and materials) and an allocation of costs directly

234
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

A. Notes
Forming Part of the Financial Statements

related to contract activities (e.g., depreciation of longer applies to transactions that give rise to equal
equipment used to fulfil the contract and costs of taxable and deductible temporary differences.
contract management and supervision). General
and administrative costs do not relate directly The amendment should be applied to transactions
to a contract and are excluded unless they are that occur on or after the beginning of the earliest
explicitly chargeable to the counterparty under the comparative period presented. In addition, at
contract. the beginning of the earliest comparative period
presented, a deferred tax asset (provided that
2.2 Standards issued but not yet effective sufficient taxable profit is available) and a deferred
tax liability should also be recognised for all
The Ministry of Corporate Affairs has notified Companies deductible and taxable temporary differences
(Indian Accounting Standards) Amendment Rules, 2023 associated with leases and decommissioning
dated 31 March 2023 to amend the following Ind AS obligations. Consequential amendment has been
which are effective from 01 April 2023. made in Ind AS 101. The amendment to Ind AS 12 are
applicable for annual periods beginning on or after
(i) Definition of Accounting Estimates - amendment to
1 April 2023.
Ind AS 8
This amendment is likely to have an impact on the
The amendment clarifies the distinction between
Company's financial statement which is currently
changes in accounting estimates and changes
being assessed by the management. Any necessary
in accounting policies and the correction of
adjustment required shall be accounted for in the
errors. It has also been clarified how entities use
next period financial statements.
measurement techniques and inputs to develop
accounting estimates.
3 Basis of accounting and preparation of
The amendment is effective for annual reporting
financial statements
periods beginning on or after 1 April 2023 and apply
to changes in accounting policies and changes in 3.1 Statement of Compliance
accounting estimates that occur on or after the
start of that period. The financial statements have been prepared to comply
in all respects with the Indian Accounting Standards (Ind
The amendment is not expected to have a material AS) notified under the Companies (Indian Accounting
impact on the Company's financial statements. Standards) Rules, 2015 (as amended from time to time)
and presentation requirements of Division II of Schedule
(ii) Disclosure of Accounting Policies - amendment to
III to the Companies Act, 2013, (Ind AS compliant
Ind AS 1
Schedule III), as applicable to the financial statements.
The amendment aims to help entities provide
The financial statements are presented in Indian Rupee
accounting policy disclosures that are more
(‘INR’), which is also the functional currency of the
useful by replacing the requirement for entities to
Company.
disclose their ‘significant’ accounting policies with a
requirement to disclose their ‘material’ accounting The financial statements for the year ended March 31,
policies and adding guidance on how entities apply 2023 were authorised and approved for issue by the
the concept of materiality in making decisions Board of Directors on May 09, 2023.
about accounting policy disclosures.
3.2 Basis of preparation and presentation
The amendment to Ind AS 1 are applicable for
annual periods beginning on or after 1 April 2023. The financial statements have been prepared on accrual
Consequential amendment has been made in Ind basis under the historical cost convention except for
AS 107. The Company is currently revisiting their certain financial instruments that are measured at fair
accounting policy information disclosures to ensure values at the end of each reporting period, as explained
consistency with the amended requirements. in the accounting policies below. The Company has
prepared the financial statements on the basis that it
(iii) Deferred Tax related to Assets and Liabilities arising will continue to operate as a going concern.
from a Single Transaction - amendment to Ind AS 12
Historical cost is generally based on the fair value of the
The amendment narrows the scope of the initial consideration given in exchange for goods and services.
recognition exception under Ind AS 12, so that it no

235
 Apollo Tyres Ltd
Annual Report 2022-23

A. Notes
Forming Part of the Financial Statements

Fair value is the price that would be received to sell All other assets are classified as non-current.
an asset or paid to transfer a liability in an orderly
transaction between market participants at the A liability is current when:
measurement date, regardless of whether that price
• It is expected to be settled in normal operating
is directly observable or estimated using another
cycle
valuation technique. In estimating the fair value of an
asset or a liability, the Company takes into account • It is held primarily for the purpose of trading
the characteristics of the asset or liability if market
participants would take those characteristics into • It is due to be settled within twelve months after
account when pricing the asset or liability at the the reporting period, or
measurement date. Fair value for measurement and/
• There is no unconditional right to defer the
or disclosure purposes in these financial statements is
settlement of the liability for at least twelve months
determined on above basis, and measurements that
after the reporting period
have some similarities to fair value but are not fair value,
such as net realisable value in Ind AS 2 - Inventories or The terms of the liability that could, at the option of
value in use in Ind AS 36 - Impairment of Assets. the counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.
In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2 or 3 based The Company classifies all other liabilities as non-
on the degree to which the inputs to the fair value current.
measurements are observable and the significance of
the inputs to the fair value measurement in its entirety, Deferred tax assets and liabilities are classified as non-
which are described as follows: current assets and liabilities.

• Level 1 - Quoted (unadjusted) market prices in active The operating cycle is the time between the acquisition
markets for identical assets or liabilities. of assets for processing and their realisation in cash and
cash equivalents. The Company has identified twelve
• Level 2 - Valuation techniques for which the months as its operating cycle.
lowest level input that is significant to the fair
value measurement is directly or indirectly The significant accounting policies are set out below:
observable.
3.3 Business Combinations
• Level 3 - Valuation techniques for which the lowest
level input that is significant to the fair value Common control business combinations includes
measurement is unobservable. transactions, such as transfer of subsidiaries or
businesses, between entities within a Company.
Current versus non-current classification
Business combinations involving entities or businesses
The Company presents assets and liabilities in under common control are accounted for using the
the balance sheet based on current/ non-current pooling of interests method.
classification. An asset is treated as current when it is:
The pooling of interest method is considered to involve
• Expected to be realised or intended to be sold or the following:
consumed in normal operating cycle
(i) The assets and liabilities of the combining entities
• Held primarily for the purpose of trading are reflected at their carrying amounts.

• Expected to be realised within twelve months after (ii) No adjustments are made to reflect fair values,
the reporting period, or or recognise any new assets or liabilities. The only
adjustments that are made are to harmonise
• Cash or cash equivalent unless restricted from accounting policies.
being exchanged or used to settle a liability for at
least twelve months after the reporting period (iii) The financial information in the financial

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Overview Leadership Report Discussion and Analysis Reports Statements

A. Notes
Forming Part of the Financial Statements

statements in respect of prior periods is restated as effect of uncertainty for each uncertain tax treatment
if the business combination had occurred from the by using either most likely method or expected value
beginning of the preceding period in the financial method, depending on which method predicts better
statements, irrespective of the actual date of the resolution of the treatment.
combination. However, if business combination
had occurred after that date, the prior period Deferred tax
information shall be restated only from that date.
Deferred tax is recognized on temporary differences
(iv) The balance of the retained earnings appearing between the carrying amount of assets and liabilities
in the financial statements of the transferor is in the financial statements and quantified using the tax
aggregated with the corresponding balance rates and laws enacted or substantively enacted as on
appearing in the financial statements of the the Balance Sheet date.
transferee.
Deferred tax liabilities are recognised for all taxable
temporary differences. Deferred tax assets are
3.4 Inventories
recognised to the extent that it is probable that taxable
Inventories are valued at the lower of cost and estimated profit will be available against which the deductible
net realizable value (net of allowances) after providing temporary differences, and the carry forward of unused
for obsolescence and other losses, where considered tax credits and unused tax losses can be utilised, except:
necessary. The cost comprises cost of purchase, cost
• When the deferred tax asset relating to the
of conversion and other costs including appropriate
deductible temporary difference arises from
production overheads in the case of finished goods and
the initial recognition of an asset or liability in a
work in progress, incurred in bringing such inventories
transaction that is not a business combination and,
to their present location and condition. Trade discounts
at the time of the transaction, affects neither the
or rebates are deducted in determining the costs of
accounting profit nor taxable profit or loss
purchase. Net realisable value represents the estimated
selling price for inventories less all estimated costs of • In respect of deductible temporary differences
completion and costs necessary to make the sale. associated with investments in subsidiaries,
associates and interests in joint ventures, deferred
In case of raw materials, stores and spares and traded
tax assets are recognised only to the extent that
goods, cost (net of tax credits wherever applicable) is
it is probable that the temporary differences will
determined on a moving weighted average basis, and,
reverse in the foreseeable future and taxable profit
in case of work in progress and finished goods, cost is
will be available against which the temporary
determined on a First In First Out basis.
differences can be utilised
3.5 Taxation
The carrying amount of deferred tax assets is reviewed
Income tax expense recognised in Statement of Profit at the end of each reporting period and reduced to
and Loss comprised the sum of deferred tax and current the extent that it is no longer probable that sufficient
tax except the ones recognised in other comprehensive taxable profits will be available to allow all or part of
income or directly in equity. the asset to be recovered. In assessing the recoverability
of deferred tax assets, the Company relies on the same
Current Tax forecast assumptions used elsewhere in the financial
statements and in other management reports.
Current tax is the amount of tax payable on the taxable
income for the year as determined in accordance The Company offsets deferred tax assets and deferred tax
with the applicable income tax laws of India. Taxable liabilities if and only if it has a legally enforceable right to
profit differs from ‘profit before tax’ as reported in set off current tax assets and current tax liabilities and the
the standalone statement of profit and loss because deferred tax assets and deferred tax liabilities relate to
of items of income or expense that are taxable or income taxes levied by the same taxation authority. The
deductible in other years and items that are never Company intends either to settle current tax liabilities and
taxable or deductible. Management periodically assets on a net basis, or to realise the assets and settle the
evaluates positions taken in the tax returns with liabilities simultaneously, in each future period in which
respect to situations in which applicable tax regulations significant amounts of deferred tax liabilities or assets are
are subject to interpretation and considers whether expected to be settled or recovered.
it is probable that a taxation authority will accept an
uncertain tax treatment. The Company shall reflect the

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Annual Report 2022-23

A. Notes
Forming Part of the Financial Statements

Minimum alternate tax (MAT) paid in a year is charged different from the useful life prescribed in Schedule II
to the statement of profit and loss as current tax for the to the Companies Act, 2013. The management believes
year. The deferred tax asset is recognised for MAT credit that these estimated useful lives are realistic and reflect
available only to the extent that it is probable that the fair approximation of the period over which the assets
concerned Company will pay normal income tax during are likely to be used.
the specified period, i.e., the period for which MAT
credit is allowed to be carried forward. In the year in The estimated useful life considered for the assets are
which the Company recognizes MAT credit as an asset, as under.
it is created by way of credit to the statement of profit
Category of assets Number of years
and loss and shown as part of deferred tax asset. The
Company reviews the “MAT credit entitlement” asset Building * 5 - 60
at each reporting date and writes down the asset to Plant and equipment 3 - 25
the extent that it is no longer probable that it will pay Electrical installations 1 - 10
normal tax during the specified period. Furniture and fixtures 4 - 10
Vehicles 4 - 10
3.6 Property, plant and equipment ('PPE') Office equipment 4 - 10
Property, plant and equipment held for use in the Assets held under leases are depreciated over their
production or supply of goods or services, or for expected lease term on the same basis as owned assets.
administrative purposes, are stated in the balance sheet However, when there is no reasonable certainty that
at cost less accumulated depreciation and accumulated ownership will be obtained by the end of the lease term,
impairment losses. Freehold land is not depreciated. assets are depreciated over the shorter of the lease
For qualifying assets, borrowing costs are capitalised term and their useful lives.
in accordance with Ind AS 23 - Borrowing costs. * Leasehold improvements included in Building are amortised over their
Depreciation of these assets, on the same basis as other period of lease or useful life, whichever is lower.
property assets, commences when the assets are ready
for their intended use. Leasehold land / Improvements thereon are amortized
over the primary period of lease.
Property, plant and equipment are capitalised at costs
relating to the acquisition and installation (net of tax An item of property, plant and equipment is
credits wherever applicable) and include finance cost on derecognised upon disposal or when no future economic
borrowed funds attributable to acquisition of qualifying benefits are expected to arise from the continued use
fixed assets for the period up to the date when the asset of the asset. Any gain or loss arising on the disposal or
is ready for its intended use, and adjustments arising retirement of an item of property, plant and equipment
from foreign exchange differences arising on foreign is determined as the difference between the sales
currency borrowings to the extent they are regarded proceeds and the carrying amount of the asset and is
as an adjustment to interest costs. Other incidental recognised in the Statement of Profit and Loss.
expenditure attributable to bringing the fixed assets
to their working condition for intended use are also
3.7 Intangible assets
capitalized. Subsequent expenditure relating to fixed Intangible assets with finite useful lives are carried at
assets is capitalised only if such expenditure meets the cost less accumulated amortisation and impairment
recognition criteria. losses, if any. The cost of an intangible asset comprises
its purchase price, including any import duties and
Depreciation is recognised so as to write off the cost
other taxes (other than those subsequently recoverable
or valuation of assets (other than freehold land and
from the tax authorities), and any directly attributable
properties under construction) less their residual
expenditure on making the asset ready for its intended
values over their useful lives, using the straight-line
use and net of any trade discounts and rebates.
method. The estimated useful lives, residual values and
Subsequent expenditure on an intangible asset after
depreciation method are reviewed at the end of each
its purchase / completion is recognised as an expense
reporting period.
when incurred unless it is probable that such expenditure
The Company, based on technical assessment made will enable the asset to generate future economic
by technical expert and management estimate, benefits in excess of its originally assessed standards
depreciates certain items of building, plant and of performance and such expenditure can be measured
equipment over estimated useful lives which are and attributed to the asset reliably, in which case such

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Overview Leadership Report Discussion and Analysis Reports Statements

A. Notes
Forming Part of the Financial Statements

expenditure is added to the cost of the asset. Internally recognised will not occur in future on account of refund
generated intangibles are not capitalised and the related or discounts. The transaction price is determined and
expenditure is reflected in statement of profit and loss in allocated to the performance obligations according to
the period in which the expenditure is incurred. the requirements of Ind AS 115. Performance obligation
are deemed to have been met when the control of goods
The intangible assets are amortized over their or services transferred to the customer.
respective estimated useful lives on a straight-line
basis, commencing from the date the asset is available The Company considers whether there are other
to the Company for its use. The amortisation period promises in the contract that are separate performance
is reviewed at the end of each financial year and the obligations to which a portion of the transaction price
changes in the expected useful life or the expected needs to be allocated. In determining the transaction
pattern of consumption of future economic benefits price for the sale of goods or services, the Company
embodied in the asset are considered to modify the considers the effects of variable consideration, the
amortisation period or method, as appropriate, which existence of significant financing components, if any.
are treated as changes in accounting estimates
Contract balances
Derecognition of intangible assets
Trade receivables
An intangible asset is derecognised upon disposal
or when no future economic benefits are expected A receivable represents the Company’s right to an
to arise from the continued use of the asset. Gains or amount of consideration that is unconditional (i.e.,
losses arising from derecognition of an intangible asset, only the passage of time is required before payment of
measured as the difference between the net disposal the consideration is due). Refer to note 3.19 Financial
proceeds and the carrying amount of the asset, are Instruments in accounting policies.
recognised in the Statement of Profit and Loss when the
Contract liabilities
asset is derecognised.
A contract liability is recognised if a payment is
The useful life considered for the intangible assets are
received or a payment is due (whichever is earlier) from
as under:
a customer before the Company transfers the related
goods or services. Contract liabilities are recognised
Category of Assets Number of years
as revenue when the Company performs under the
Computer Software 3-6 contract (i.e., transfers control of the related goods or
services to the customer).
3.8 Revenue recognition
In accordance with Ind AS 115, the Company recognises
3.9 Other income
the amount as revenue from contracts with customers, Dividend income from investments is recognised when
which is received for the transfer of promised goods or the right to receive payment has been established
services to customers in exchange for those goods or (provided that it is probable that the economic benefits
services. The relevant point in time or period of time is will flow to the Company and the amount of income can
the transfer of control of the goods or services (control be measured reliably).
approach). The Company recognises revenue at point in
time. Revenue is reduced for customer returns, taxes on Interest income from a financial asset is recognised
sales, estimated rebates and other similar allowances. when it is probable that the economic benefits will flow
To determine when to recognise revenue and at what to the Company and the amount of income can be
amount, the five-step model is applied. By applying the measured reliably. Interest income is accrued on a time
five-step model distinct performance obligations are basis, by reference to the principle outstanding and at
identified. Variable consideration includes various forms the effective interest rate applicable, which is the rate
of sales related obligations like volume discounts, price that exactly discounts estimated future cash receipts
concessions, incentives, etc. on the goods sold or services through the expected life of the financial asset to that
rendered to its customers, dealers and distributors. asset’s net carrying amount on initial recognition.
In all such cases, accumulated experience is used to
estimate and provide for the variability in revenue, Royalty income is recognised on an accrual basis
using the expected value method and the revenue is in accordance with the substance of the relevant
recognised to the extent that it is highly probable that a agreement.
significant reversal in the amount of cumulative revenue

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Annual Report 2022-23

A. Notes
Forming Part of the Financial Statements

3.10 Employee benefits of the estimated future cash outflows expected to be

made by the Company in respect of services provided
Employee benefits include wages and salaries, provident by employees up to the reporting date.
fund, superannuation fund, employee state insurance
scheme, gratuity fund and compensated absences. 3.11 Government grants, subsidies and export
incentives
Defined Contribution Plans
Government grants and subsidies are recognised when
Contributions to defined contribution plans are there is reasonable assurance that the Company will
recognised as an expense when employees have comply with the conditions attached to them and the
rendered service entitling them to the contributions. grants / subsidy will be received.
Defined Benefit Plans Government grants and subsidies whose primary
condition is that the Company should purchase,
For defined benefit retirement plans, the cost of
construct or otherwise acquire non-current assets are
providing benefits is determined using the projected
recognised as deferred revenue in the balance sheet
unit credit method, with actuarial valuations being
which is disclosed as investment promotion subsidy
carried out at the end of each annual reporting period.
receivable and transferred to the Statement of Profit
Defined benefit costs are categorised as follows: and Loss on a systematic basis over the expected useful
life of the related assets.
a. service cost (including current service cost,
past service cost, as well as gains and losses on Government grants and subsidies related to the income
curtailments and settlements); are deferred which is disclosed as deferred revenue
arising from government grant in the Balance Sheet
b. net interest expense or income; and and recognized in the Statement of Profit and Loss as
an income in the period in which related obligations
c. re-measurement
are met.
Re-measurement, comprising actuarial gains and
Export incentives under various schemes notified by
losses, the effect of the changes to the asset ceiling
the Government have been recognised on the basis of
(if applicable) and the return on plan assets (excluding
applicable regulations, and when reasonable assurance
net interest), is reflected immediately in the Balance
to receive such revenue is established and disclosed
Sheet with a charge or credit recognised in other
under other operating income.
comprehensive income in the period in which they occur.
The re-measurements of the net defined benefit liability Export incentives earned in the year of exports are
are directly recognised in the other comprehensive netted off from cost of raw material imported.
income in the period in which they arise. Past service cost
is recognised in the Statement of Profit and Loss in the 3.12 Foreign currency transactions and
period of a plan amendment. Net interest is calculated translations
by applying the discount rate at the beginning of the
period to the net defined benefit liability or asset. The Company’s financial statements are presented in
INR which is also the Company’s functional currency.
The obligations recognised in the balance sheet Foreign currency transactions are recorded at rates
represents the actual deficit or surplus in the Company’s of exchange prevailing on the date of transaction.
defined benefit plans. Any surplus resulting from this Monetary assets and liabilities denominated in foreign
calculation is limited to the present value of any economic currencies as at the balance sheet date are translated
benefits available in the form of refunds from the plans or at the rate of exchange prevailing at the year-end.
reductions in future contributions to the plans. Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at
Other current and non-current employee benefits the rates prevailing at the date when the fair value was
Liabilities recognised in respect of short-term employee determined. Non-monetary items that are measured
benefits are measured at the undiscounted amount of in terms of historical cost in a foreign currency are not
the benefits expected to be paid in exchange for the retranslated.
related service. According to Appendix B of Ind AS 21 “Foreign currency
Liabilities recognised in respect of other long-term transactions and advance consideration”, purchase or
employee benefits are measured at the present value sale transactions must be translated at the exchange

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Overview Leadership Report Discussion and Analysis Reports Statements

A. Notes
Forming Part of the Financial Statements

rate prevailing on the date the asset or liability is lease if the contract conveys the right to control the use
initially recognized. In practice, this is usually the date of an identified asset for a period of time in exchange
on which the advance payment is paid or received. for consideration. To assess whether a contract conveys
In the case of multiple advances, the exchange rate the right to control the use of an identified asset, the
must be determined for each payment and collection Company assesses whether: (1) the contract involves
transaction. the use of an identified asset, (2) the Company has
substantially all of the economic benefits from the use
Exchange differences on monetary items are recognised of the asset through the period of the lease, and (3) the
in the Statement of Profit and Loss in which they arise Company has the right to direct the use of the asset.
except for:
At the date of commencement of the lease, the Company
a. exchange differences on foreign currency recognizes a Right of use (ROU) asset and a corresponding
borrowings relating to assets under construction lease liability for all lease arrangements under which it is a
for future productive use, which are included in the lessee, except for short-term leases and low value leases.
For short-term leases and low value leases, the Company
cost of those assets when they are regarded as
recognizes the lease payments as an expense on a straight-
an adjustment to interest costs on those foreign
line basis over the term of the lease.
currency borrowings;
Certain lease arrangements include options to extend
b. exchange differences on transactions entered into or terminate the lease before the end of the lease term.
in order to hedge certain foreign currency risks; and ROU assets and lease liabilities include these options
when it is reasonably certain that they will be exercised.
c. exchange differences on monetary items receivable
from or payable to a foreign operation for which The ROU assets are initially recognized at cost, which
settlement is neither planned nor likely to occur comprises the initial amount of the lease liability
(therefore forming part of the net investment in the adjusted for any lease payments made at or prior to the
foreign operation), which are recognised initially commencement date of the lease plus any initial direct
in other comprehensive income and reclassified costs less any lease incentives. They are subsequently
from equity to the Statement of Profit and Loss on measured at cost less accumulated depreciation and
repayment of the monetary items. impairment losses. ROU assets are depreciated from
the date of commencement of the lease on a straight
3.13 Borrowing costs line basis over the shorter of the lease term and the
useful life of the underlying asset.
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are The lease liability is initially measured at amortized cost
assets that necessarily take a substantial period of time at the present value of the future lease payments. For
to get ready for their intended use or sale, are added to leases under which the rate implicit in the lease is not
the cost of those assets, until such time as the assets are readily determinable, the Company uses its incremental
borrowing rate based on the information available at
substantially ready for their intended use or sale.
the date of commencement of the lease in determining
All other borrowing costs are recognised in the the present value of lease payments. Lease liabilities
Statement of Profit and Loss in the period in which they are re measured with a corresponding adjustment to
are incurred. Other finance costs includes interest on the related ROU asset if the Company changes its
assessment as to whether it will exercise an extension or
other contractual obligations.
a termination option.
Borrowing costs consist of interest and other costs
Lease liability and ROU assets have been separately
that an entity incurs in connection with the borrowing
presented in the Balance sheet and the payment of
of funds. Borrowing costs also include exchange principal and interest portion of lease liabilities has
differences to the extent regarded as an adjustment to been classified as financing cash flows.
the borrowing costs.
The weighted average incremental borrowing rate
3.14 Leases applied to lease liabilities is 8% p.a.

The Company as lessee 3.15 Earnings per share

The Company’s lease asset classes primarily consist Basic earnings per share is computed by dividing the
of leases for Building and Plant and Machinery. The profit / (loss) after tax (including the post tax effect of
Company assesses whether a contract contains a lease, extraordinary items, if any) by the weighted average
at inception of a contract. A contract is, or contains, a number of equity shares outstanding during the year.

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A. Notes
Forming Part of the Financial Statements

Diluted earnings per share is computed by dividing the If the recoverable amount of an asset (or cash-
profit / (loss) after tax (including the post tax effect of generating unit) is estimated to be less than its carrying
extraordinary items, if any) as adjusted for dividend, amount, the carrying amount of the asset (or cash-
interest and other charges to expense or income (net of generating unit) is reduced to its recoverable amount.
any attributable taxes) relating to the dilutive potential An impairment loss is recognised immediately in the
equity shares, by the weighted average number of Statement of Profit and Loss, unless the relevant asset
equity shares considered for deriving basic earnings is carried at a revalued amount, in which case the
per share and the weighted average number of equity impairment loss is treated as a revaluation decrease.
shares which could have been issued on the conversion
of all dilutive potential equity shares. Potential equity When an impairment loss subsequently reverses, the
shares are deemed to be dilutive only if their conversion carrying amount of the asset (or a cash-generating
to equity shares would decrease the net profit per share unit) is increased to the revised estimate of its
from continuing ordinary operations. Potential dilutive recoverable amount, but so that the increased carrying
equity shares are deemed to be converted as at the amount does not exceed the carrying amount that
beginning of the period, unless they have been issued would have been determined had no impairment loss
at a later date. The dilutive potential equity shares are been recognised for the asset (or cash-generating
adjusted for the proceeds receivable had the shares been unit) in prior years. A reversal of an impairment loss is
actually issued at fair value (i.e., average market value
recognised immediately in the Statement of Profit and
of the outstanding shares). Dilutive potential equity
Loss, unless the relevant asset is carried at a revalued
shares are determined independently for each period
amount, in which case the reversal of the impairment
presented. The number of equity shares and potentially
loss is treated as a revaluation increase.
dilutive equity shares are adjusted for share splits /
reverse share splits and bonus shares, as appropriate.
3.17 Provisions and contingencies
3.16 Impairment of tangible and intangible A provision is recognized when the Company has a
assets present obligation (legal / constructive) as a result
of past events and it is probable that an outflow of
At the end of each reporting period, the Company
resources will be required to settle the obligation, in
reviews the carrying amounts of its tangible and
respect of which a reliable estimate can be made.
intangible assets or cash generating units to determine
whether there is any indication that those assets have The amount recognised as a provision is the best estimate
suffered an impairment loss. If any such indication of the consideration required to settle the present
exists, the recoverable amount of the asset is estimated obligation at the end of the reporting period, taking
in order to determine the extent of the impairment into account the risks and uncertainties surrounding
loss (if any). When it is not possible to estimate the obligation. When a provision is measured using the
the recoverable amount of an individual asset, the cash flows estimated to settle the present obligation, its
Company estimates the recoverable amount of the carrying amount is the present value of those cash flows
cash-generating unit to which the asset belongs. When (when the effect of the time value of money is material).
a reasonable and consistent basis of allocation can
be identified, corporate assets are also allocated to Contingent liability is disclosed for (i) Possible obligation
individual cash-generating units, or otherwise they are which will be confirmed only by future events not
allocated to the smallest Company of cash-generating wholly within the control of the Company or (ii) Present
units for which a reasonable and consistent allocation obligations arising from past events where it is not
basis can be identified. probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount
Intangible assets with indefinite useful lives and of the obligation cannot be made. When some or all of
intangible assets not yet available for use are tested for the economic benefits required to settle a provision are
impairment at least annually, or whenever there is an expected to be recovered from a third party, a receivable
indication that the asset may be impaired. is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the
Recoverable amount is the higher of fair value less
receivable can be measured reliably.
costs of disposal and value in use. In assessing value in
use, the estimated future cash flows are discounted to Provisions for the expected cost of sales related
their present value using a pre-tax discount rate that obligations are recognised at the date of sale of the
reflects current market assessments of the time value of relevant products, at the management's best estimate
money and the risks specific to the asset for which the of the expenditure required to settle the Company's
estimates of future cash flows have not been adjusted. obligation.

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Overview Leadership Report Discussion and Analysis Reports Statements

A. Notes
Forming Part of the Financial Statements

3.18 Financial instruments future cash receipts (including all fees and
points paid or received that form an integral
Financial assets and financial liabilities are recognised part of the effective interest rate, transaction
when an entity becomes a party to the contractual costs and other premiums or discounts) through
provisions of the instruments. the expected life of the debt instrument, or,
where appropriate, a shorter period, to the net
Financial assets and financial liabilities are initially
carrying amount on initial recognition.
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets Income is recognised on an effective interest basis
and financial liabilities (other than financial assets and for debt instruments other than those financial
financial liabilities at fair value through profit and loss) are assets classified as at FVTPL. Interest income is
added to or deducted from the fair value of the financial recognised in the Statement of Profit and Loss
assets or financial liabilities, as appropriate, on initial and is included in the 'Other Income' line item.
recognition. However, trade receivable that do not contain
a significant financing component are measured at b. Assets available for sale
transaction price. Transaction costs directly attributable
Financial assets that meet the following
to the acquisition of financial assets or financial liabilities
conditions are subsequently measured at fair
at fair value through profit and loss are recognised
value through other comprehensive income
immediately in the Statement of Profit and Loss.
('FVTOCI') (except for investments that are
3.19 Financial assets designated as at FVTPL on initial recognition):

All regular way purchases or sales of financial assets i. the asset is held within a business model
are recognised and derecognised on a trade date basis. whose objective is achieved both by
Regular way purchases or sales are purchases or sales collecting contractual cash flows and
of financial assets that require delivery of assets within selling financial assets; and
the time frame established by regulation or convention
ii. the contractual terms of the instrument
in the marketplace.
give rise on specified dates to cash flows
All recognised financial assets are subsequently that are solely payments of principal
measured in their entirety at either amortised cost and interest on the principal amount
or fair value, depending on the classification of the outstanding.
financial assets.
All other financial assets are subsequently
3.19.1 Classification of financial asset measured at fair value.

a. Loans and receivable c. Assets held for trading

Financial assets that meet the following A financial asset is held for trading if:
conditions are subsequently measured at
i. it has been acquired principally for the
amortised cost less impairment loss (except for
purpose of selling it in the near term; or
investments that are designated as at FVTPL
on initial recognition): ii. on initial recognition it is part of a portfolio
of identified financial instruments that the
i. the asset is held within a business model
Company manages together and has a
whose objective is to hold assets in order to
recent actual pattern of short-term profit-
collect contractual cash flows; and
taking; or
ii. the contractual terms of the instrument give
iii. it is a derivative that is not designated
rise on specified dates to cash flows that are
and effective as a hedging instrument or a
solely payments of principal and interest on
financial guarantee.
the principal amount outstanding.
Dividends on these investments in equity
The effective interest method is a method
instruments are recognised in the Statement
of calculating the amortised cost of a debt
of Profit and Loss when the right to receive
instrument and of allocating interest income
the dividends is established and it is probable
over the relevant period. The effective interest
that the economic benefits associated with the
rate is the rate that exactly discounts estimated

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A. Notes
Forming Part of the Financial Statements

dividend will flow to the entity, the dividend Expected credit losses are the weighted average
does not represent a recovery of part of cost of of credit losses with the respective risks of default
the investment and the amount of dividend can occurring as the weights. Credit loss is the difference
be measured reliably. between all contractual cash flows that are due to
the Company in accordance with the contract and all
d. Financial assets at fair value through profit the cash flows that the Company expects to receive
and loss ('FVTPL') (i.e., all cash shortfalls), discounted at the original
effective interest rate (or credit-adjusted effective
Investments in equity instruments are classified
interest rate for purchased or originated credit-
as at FVTPL, unless the Company irrevocably
impaired financial assets). The Company estimates
elects on initial recognition to present
cash flows by considering all contractual terms of
subsequent changes in fair value in other
the financial instrument (for example, prepayment,
comprehensive income for equity instruments
extension, call and similar options) through the
which are not held for trading.
expected life of that financial instruments.
Debt instrument that do not meet the
The Company measures the loss allowance for a
amortised cost criteria or fair value through
financial instrument at an amount equal to the
other comprehensive income criteria (see
lifetime expected credit losses if the credit risk on
above) are measured at FVTPL. In addition, debt
that financial instrument has increased significantly
instruments that meet the amortised cost criteria
since initial recognition. If the credit risk on a
or the fair value through other comprehensive
financial instrument has not increased significantly
income criteria but are designated as at FVTPL
since initial recognition, the Company measures
are measured at FVTPL.
the loss allowance for that financial instrument
A financial asset may be designated as at an amount equal to 12-month expected credit
at FVTPL upon initial recognition if such losses.12-month expected credit losses are the
designation eliminates or significantly reduces portion of the life-time expected credit losses and
a measurement or recognition inconsistency represent the lifetime cash shortfalls that will result
that would arise from measuring assets or if a default occurs within the 12 months after the
liabilities or recognising the gains and losses on reporting date and thus, are not cash shortfalls
them on different bases. that are predicted over the next 12 months.

Financial assets at FVTPL are measured at fair If the Company measured loss allowance for a
value at the end of each reporting period, with financial instrument at lifetime expected credit loss
any gains or losses arising on re-measurement model in the previous period, but determines at the
recognised in the Statement of Profit and Loss. end of a reporting period that the credit risk has not
The net gain or loss recognised in the Statement increased significantly since initial recognition due
of Profit and Loss is included in the 'other income' to improvement in credit quality as compared to
line item. Dividend on financial assets at FVTPL is the previous period, the Company again measures
recognised when the Company’s right to receive the loss allowance based on 12- month expected
the dividends is established, it is probable that credit losses.
the economic benefits associated with the
When making the assessment of whether there has
dividend will flow to the entity, the dividend
been a significant increase in credit risk since initial
does not represent a recovery of the part of cost
recognition, the Company uses the change in the risk
of the investment and the amount of dividend
of a default occurring over the expected life of the
can be measured reliably.
financial instrument. To make that assessment, the
3.19.2 Impairment of financial assets Company compares the risk of a default occurring
on the financial instrument as at the reporting date
The Company applies the expected credit loss model with the risk of a default occurring on the financial
for recognising impairment loss on financial assets instrument as at the date of initial recognition and
measured at amortised cost, debt instruments at considers reasonable and supportable information,
FVTOCI, lease receivables, trade receivables, other that is available without undue cost or effort, that
contractual rights to receive cash or other financial is indicative of significant increases in credit risk
assets, and financials guarantees not designated since initial recognition.
as at FVTPL.

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Overview Leadership Report Discussion and Analysis Reports Statements

A. Notes
Forming Part of the Financial Statements

For trade receivables and contract assets, recognized in the Statement of Profit and Loss
the Company applies a simplified approach in on disposal of that financial asset. A cumulative
calculating ECLs. Therefore, the Company does not gain or loss that had been recognised in other
track changes in credit risk, but instead recognises comprehensive income is allocated between the
a loss allowance based on lifetime ECLs at each part that continues to be recognised and the part
reporting date. The Company has established that is no longer recognised on the basis of the
a provision matrix that is based on its historical relative fair values of those parts.
credit loss experience, adjusted for forward-looking
factors specific to the debtors and the economic 3.20 Financial liabilities and equity instruments
environment.
3.20.1 Classification as debt or equity
3.19.3 De-recognition of financial assets
Debt and equity instruments issued by the
The Company derecognises a financial asset when Company are classified as either financial liabilities
the contractual rights to the cash flows from the or as equity in accordance with the substance of
asset expire, or when it transfers the financial the contractual arrangements and the definitions
asset and substantially all the risks and rewards of a financial liability and an equity instrument.
of ownership of the asset to another party. If the
3.20.2 Equity instruments
Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues An equity instrument is any contract that evidences
to control the transferred asset, the Company a residual interest in the assets of an entity after
recognises its retained interest in the asset and an deducting all of its liabilities. Equity instruments
associated liability for amounts it may have to pay. issued by the Company are recognised at the
If the Company retains substantially all the risks proceeds received, net of direct issue costs.
and rewards of ownership of a transferred financial
asset, the Company continues to recognise the 3.20.3 Financial liabilities
financial asset and also recognises a collateralised
borrowing for the proceeds received. All financial liabilities are subsequently measured at
amortised cost using the effective interest method
On de-recognition of a financial asset in its entirety, or at FVTPL. However, financial liabilities that arise
the difference between the asset’s carrying amount when a transfer of a financial asset does not qualify
and the sum of the consideration received and for derecognition or when the continuing involvement
receivable and the cumulative gain or loss that had approach applies, financial guarantee contracts
been recognised in other comprehensive income and issued by the Company are measured in accordance
accumulated in equity is recognised in the Statement with the specific accounting policies set out below.
of Profit and Loss if such gain or loss would have
otherwise been recognized in the Statement of Profit 3.20.3.1 Financial liabilities at FVTPL
and Loss on disposal of that financial asset. Financial liabilities are classified as at FVTPL
On de-recognition of a financial asset other than when the financial liability is either held for
in its entirety (e.g. when the Company retains an trading or it is designated as at FVTPL.
option to repurchase part of a transferred asset), A financial liability is classified as held for
the Company allocates the previous carrying trading if:
amount of the financial asset between the
part it continues to recognise under continuing i. it has been incurred principally for the
involvement, and the part it no longer recognises on purpose of repurchasing it in the near term;
the basis of the relative fair values of those parts or
on the date of the transfer. The difference between
the carrying amount allocated to the part that is no ii. on initial recognition it is part of a portfolio
longer recognised and the sum of the consideration of identified financial instruments that the
received for the part no longer recognised and any Company manages together and has a
cumulative gain or loss allocated to it that had recent actual pattern of short-term profit-
been recognised in other comprehensive income taking; or
is recognised in the Statement of Profit and Loss
iii. it is a derivative that is not designated and
if such gain or loss would have otherwise been
effective as a hedging instrument.

245
 Apollo Tyres Ltd
Annual Report 2022-23

A. Notes
Forming Part of the Financial Statements

A financial liability other than a financial In respect to the purchase of raw material
liability held for trading may be designated as by the Company from certain vendors, the
at FVTPL upon initial recognition if: payments are made to the respective banks
at the request of the vendors. Accordingly, in
i. such designation eliminates or significantly compliance with the provisions of Ind AS 109,
reduces a measurement or recognition such payables to banks are disclosed as Trade
inconsistency that would otherwise arise; payables and are subsequently measured at
or amortised cost using the effective interest
method. Interest borne by the Company on
ii. the financial liability forms part of a
such arrangements is disclosed as finance cost.
Company of financial assets or financial
liabilities or both, which is managed 3.20.3.3 Financial guarantee contracts
and its performance is evaluated on a
fair value basis, in accordance with the A financial guarantee contract is a contract
Company's documented risk management that requires the issuer to make specified
or investment strategy, and information payments to reimburse the holder for a loss it
about the Company is provided internally incurs because a specified debtor fails to make
on that basis; or payments when due in accordance with the
terms of a debt instrument.
iii. it forms part of a contract containing one
or more embedded derivatives, and Ind Financial guarantee contracts issued by the
AS 109 - Financial Instruments permits the Company are initially measured at their fair
entire combined contract to be designated values and, if not designated as at FVTPL, are
as at FVTPL in accordance with Ind AS 109. subsequently measured at:

Financial liabilities at FVTPL are stated at i. amount of loss allowance determined in

fair value, with any gains or losses arising on accordance with impairment requirements
remeasurement recognised in the Statement of Ind AS 109 - Financial Instruments; and
of Profit and Loss.
ii. amount initially recognised less, where
3.20.3.2 Financial liabilities subsequently appropriate, cumulative amortisation
measured at amortised cost recognised in accordance with the revenue
recognition policies of Ind AS 115, Revenue
Financial liabilities that are not held-for- from Contracts with Customers.
trading and are not designated as at FVTPL
are measured at amortised cost at the end of For financial liabilities that are denominated
subsequent accounting periods. The carrying in a foreign currency and are measured at
amounts of financial liabilities that are amortised cost at the end of each reporting
subsequently measured at amortised cost are period, the foreign exchange gains and losses
determined based on the effective interest are determined based on the amortised cost
method. Interest expense that is not capitalised of the instruments and are recognised in the
as part of costs of an asset is included in the 'Other Income' line item.
'finance costs' line item.
The fair value of financial liabilities denominated
The effective interest method is a method of in a foreign currency is determined in that
calculating the amortised cost of a financial foreign currency and translated at the spot rate
liability and of allocating interest expense over at the end of the reporting period. For financial
the relevant period. The effective interest rate liabilities that are measured as at FVTPL, the
is the rate that exactly discounts estimated foreign exchange component forms part of the
future cash payments (including all fees and fair value gains or losses and is recognised in
points paid or received that form an integral the Statement of Profit and Loss.
part of the effective interest rate, transaction
costs and other premiums or discounts) through 3.20.3.4 Derecognition of financial liabilities
the expected life of the financial liability, or
The Company derecognises financial liabilities
(where appropriate) a shorter period, to the
when, and only when, the Company’s
net carrying amount on initial recognition.
obligations are discharged, cancelled or they

246
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

A. Notes
Forming Part of the Financial Statements

expire. The difference between the carrying Hedge accounting is discontinued when the hedging
amount of the financial liability derecognised instrument expires or is sold, terminated, or exercised,
and the consideration paid and payable is or when it no longer qualifies for hedge accounting. The
recognised in the Statement of Profit and Loss. fair value adjustment to the carrying amount of the
hedged item arising from the hedged risk is amortised
3.21 Derivative financial instruments to statement of profit and loss from that date.

The Company enters into a variety of derivative Cash flow hedges

financial instruments to manage its exposure
to interest rate and foreign exchange rate risks, The effective portion of changes in the fair value of
including options, foreign exchange forward derivatives that are designated and qualify as cash flow
contracts and cross currency swaps. hedges are recognised in other comprehensive income
and accumulated under the heading of cash flow hedging
Derivatives are initially recognised at fair value at the reserve. The gain or loss relating to the ineffective portion
date the derivative contracts are entered into and is recognised immediately in the Statement of Profit
are subsequently remeasured to their fair value at and Loss and is included in the 'Other income'/ 'Other
the end of each reporting period. The resulting gain expense' line item. Amounts previously recognised in
or loss is recognised in the Statement of Profit and other comprehensive income and accumulated in equity
Loss immediately unless the derivative is designated relating to (effective portion as described above) are
and effective as a hedging instrument, in which event reclassified to the Statement of Profit and Loss in the
the timing of the recognition in the Statement of periods when the hedged item affects the Statement of
Profit and Loss depends on the nature of the hedging Profit and Loss, in the same line as the recognised hedged
relationship and the nature of the hedged item. item. However, when the hedged forecast transaction
results in the recognition of a non-financial asset or a non-
3.22 Hedge Accounting financial liability, such gains, and losses are transferred
The Company designates certain hedging instruments, from equity (but not as a reclassification adjustment)
which include derivatives, embedded derivatives and and included in the initial measurement of the cost of the
non-derivatives in respect of foreign currency risk, as non -financial asset or non-financial liability.
either fair value hedges, cash flow hedges, or hedges of
In cases where the designated hedging instruments
net investments in foreign operations. Hedges of foreign
are options and forward contracts, the Company has
exchange risk on firm commitments are accounted for
an option, for each designation, to designate on an
as cash flow hedges.
instrument only the changes in the intrinsic value of
At the inception of the hedge relationship, the entity the options and spot element of forward contracts
documents the relationship between the hedging respectively as hedges. In such cases, the time value
instrument and the hedged item, along with its of the options is accounted for based on the type of
risk management objectives and its strategy for hedged item which those options hedge.
undertaking various hedge transactions. Furthermore,
In case of transaction related hedged item in the
at the inception of the hedge and on an ongoing
above cases, the change in time value of the options
basis, the Company documents whether the hedging
is recognised in other comprehensive income to the
instrument is highly effective in offsetting changes in
extent it relates to the hedged item and accumulated
fair values or cash flows of the hedged item attributable
in a separate component of equity, i.e., Reserve
to the hedged risk.
for time value of options and forward elements
Fair Value hedges of forward contracts in hedging relationship. This
separate component is removed and directly included
Changes in fair value of the designated portion in the initial cost or other carrying amount of the
of derivatives that qualify as fair value hedges asset or the liability (i.e., not as a reclassification
are recognised in the statement of profit and loss adjustment thus not affecting other comprehensive
immediately, together with any changes in the fair value income) if the hedged item subsequently results in
of the hedged asset or liability that are attributable recognition of a non-financial asset or a non-financial
to the hedged risk. The change in the fair value of the liability. In other cases, the amount accumulated is
designated portion of the hedging instrument and the reclassified to the Statement of Profit and Loss as a
change in fair value of the hedged item attributable to reclassification adjustment in the same period in which
the hedged risk are recognised in the Statement of Profit the hedged expected future cash flows affect the
and Loss in the line item relating to the hedged item. Statement of Profit and Loss.

247
 Apollo Tyres Ltd
Annual Report 2022-23

A. Notes
Forming Part of the Financial Statements

In case of time-period related hedged item in the insignificant risk of changes in value.
above cases, the change in time value of the options
is recognised in other comprehensive income to the For the purpose of the statement of cash flows, cash
extent it relates to the hedged item and accumulated and cash equivalents consist of cash and short-term
in a separate component of equity, i.e., Reserve for balances, as defined above, net of outstanding cash
time value of options and forward elements of forward credits as they are considered an integral part of the
contracts in hedging relationship. The time value of Company’s cash management. The cash flow statement
options at the date of designation of the options in the is prepared using indirect method.
hedging relationships is amortised on a systematic and
3.24 Rounding off amounts
rational basis over the period during which the options'
intrinsic value could affect the Statement of Profit and All amounts disclosed in the financial statements and
Loss. This is done as a reclassification adjustment and notes have been rounded off to the nearest millions as
hence affects other comprehensive income. per the requirements of Schedule III of the Act unless
otherwise stated.
In cases where only the spot element of the forward
contracts is designated in a hedging relationship and 3.25 Critical accounting judgments and key
the forward element of the forward contract is not
sources of estimation uncertainty
designated, the Company makes the choice for each
designation whether to recognise the changes in The preparation of financial statements in conformity
the forward element of the fair value of the forward with Ind AS requires management to make certain
contracts in the Statement of Profit and Loss or to judgments and estimates that may effect the
account for this element similar to the time value of an application of accounting policies, reported amounts,
option. and related disclosures.

Hedge accounting is discontinued when the hedging These judgments and estimates may have an impact on
instrument expires or is sold, terminated, or exercised, or the assets and liabilities, disclosure of contingent liabilities
when it no longer qualifies for hedge accounting. Any gain at the date of the financial statements, and income and
or loss recognised in other comprehensive income and expense items for the period under review. Actual results
accumulated in equity at that time remains in equity and may differ from these judgments and estimates.
is recognised when the forecast transaction is ultimately
recognised in the Statement of Profit and Loss. When All assumptions, expectations, and forecasts that are
a forecast transaction is no longer expected to occur, used as a basis for judgments and estimates in the
the gain or loss accumulated in equity is recognised financial statements represent as accurate an outlook
immediately in the Statement of Profit and Loss. as possible for the Company. These judgments and
estimates only represent the interpretation of the
3.23 Cash and cash equivalents Company as of the dates on which they were prepared.

Cash comprises cash on hand and demand deposits Important judgments and estimates relate largely to
with banks. Cash equivalents are short-term balances provisions, tangible and intangible assets (lives, residual
(with an original maturity of three months or less from values and impairment), deferred tax assets (including
the date of acquisition) that are readily convertible MAT credit) and liabilities, sales related obligations
into known amounts of cash and which are subject to covering discounts and incentives, contingencies in
relation to tax litigation matters and valuation of
financial instruments.

248
 B. Notes
Forming Part of the Financial Statements
Overview
Corporate

B 1 PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS AS AT MARCH 31, 2023

GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at As at Depreciation / Eliminated As at As at As at
Description of assets As at April
From our

Additions Disposals March 31, April 1, amortisation on disposal March 31, March 31, March 31,
Leadership

1, 2022
2023 2022 expense of assets 2023 2023 2022

A. Property, plant and equipment -

owned unless otherwise stated
Land:
Freehold land 144.64 528.30 - 672.94 - - - - 672.94 144.64
Report

Buildings 24,505.42 758.41 21.11 25,242.72 5,299.30 940.36 3.43 6,236.23 19,006.49 19,206.12
ESG Performance

Plant and equipment * 127,422.05 5,985.07 687.45 132,719.67 38,043.73 6,037.15 679.94 43,400.94 89,318.73 89,378.32
Electrical installations 4,260.32 451.18 11.27 4,700.23 2,171.67 324.20 11.27 2,484.60 2,215.63 2,088.65
Furniture and fixtures 2,633.70 312.87 0.78 2,945.79 1,932.88 205.55 0.76 2,137.67 808.12 700.82
Vehicles 1,164.61 237.74 204.15 1,198.20 436.30 153.42 126.37 463.35 734.85 728.31
Office equipment 899.87 194.91 0.02 1,094.76 684.05 155.47 0.02 839.50 255.26 215.82
Management

Total tangible assets 161,030.61 8,468.48 924.78 168,574.31 48,567.93 7,816.15 821.79 55,562.29 113,012.02 112,462.68
B. Intangible assets:
Discussion and Analysis

Computer software 1,232.64 180.92 - 1,413.56 793.64 157.84 - 951.48 462.08 439.00
TOTAL (A + B) 162,263.25 8,649.40 924.78 169,987.87 49,361.57 7,973.99 821.79 56,513.77 113,474.10 112,901.68
Reports
Statutory
Financial
Statements

249
250
B. Notes
Forming Part of the Financial Statements

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS AS AT MARCH 31, 2022
H Million
GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK
As at As at Depreciation / Eliminated As at As at As at
Description of assets As at April
Additions Disposals March 31, April 1, amortisation on disposal March 31, March 31, March 31,
1, 2021
2022 2021 expense of assets 2022 2022 2021

A Property, plant and equipment -

owned unless otherwise stated
Land:
Freehold land 144.64 - - 144.64 - - - - 144.64 144.64
Buildings 22,204.31 2,417.39 116.28 24,505.42 4,442.59 877.02 20.31 5,299.30 19,206.12 17,761.72
Plant and equipment * 108,122.33 19,420.78 121.06 127,422.05 32,801.97 5,348.72 106.96 38,043.73 89,378.32 75,320.36
Electrical installations 3,692.21 569.16 1.05 4,260.32 1,869.51 303.21 1.05 2,171.67 2,088.65 1,822.70
Furniture and fixtures 2,366.75 274.99 8.04 2,633.70 1,724.74 216.18 8.04 1,932.88 700.82 642.01
Vehicles 952.44 361.90 149.73 1,164.61 413.14 132.38 109.22 436.30 728.31 539.30
Office equipment 874.01 28.33 2.47 899.87 553.37 133.15 2.47 684.05 215.82 320.64
Total tangible assets 138,356.69 23,072.55 398.63 161,030.61 41,805.32 7,010.66 248.05 48,567.93 112,462.68 96,551.37
B Intangible assets:
Computer software 1,033.39 199.25 - 1,232.64 657.44 136.20 - 793.64 439.00 375.95
TOTAL (A + B) 139,390.08 23,271.80 398.63 162,263.25 42,462.76 7,146.86 248.05 49,361.57 112,901.68 96,927.32
Annual Report 2022-23
Apollo Tyres Ltd
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

B. Notes
Forming Part of the Financial Statements

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS AS AT MARCH 31, 2022 (Contd..)
DEPRECIATION AND AMORTISATION EXPENSE
H Million
Year ended Year ended
March 31, 2023 March 31, 2022
Property, plant and equipment 7,816.15 7,010.66
Right-to-use assets (refer note C4) 1,096.51 1,092.27
Other intangible assets 157.84 136.20
Total 9,070.50 8,239.13
* Plant and equipment include jointly owned assets with gross book value of J 311.28 Million (H 311.28 Million) and net book value of J 188.01 Million (H 200.55
Million) which represents 50% ownership in those assets.

(a) Includes borrowing cost capitalised to the extent of J 214.50 Million (H 442.12 Million) including J 116.95 Million (Nil)
capitalised from CWIP of previous year.

(b) Buildings include buildings constructed on leasehold land with gross book value of J 13,974.22 Million (H 13,488.13 Million)
and net book value of J 9,334.21 Million (H 9,325.37 Million).

(c) Refer note B13 (a) for details on pledges and securities.

(d) Freehold land includes land of J 528.30 Million (H Nil) acquired by the Company through the agreement to sale and is in
the process of getting the title deeds transferred to its name.

FINANCIAL ASSETS (NON-CURRENT)

B 2 INVESTMENTS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
I At fair value through profit and loss
A Quoted investments *
Investment in equity instruments:
16,394 (16,394) equity shares of H 10/- each in Bharat Gears Limited - fully
2.06 2.36
paid up
2.06 2.36
B Unquoted investments **
Investment in equity instruments:
Other companies:
312,000 (312,000) equity shares of H 10 each in Green
Infra Wind Power Projects Limited - fully paid up 3.12 3.12
2,256,000 (2,256,000) equity shares of H 30 each in Suryadev
Alloys and Power Private Limited - fully paid up 67.68 67.68
406,700 (217,100) equity shares of H 11.50 each in
OPG Power Generation Private Limited - fully paid up 4.68 2.50
75.48 73.30
Investments carried at fair value through profit and loss (FVTPL) 77.54 75.66

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 Apollo Tyres Ltd
Annual Report 2022-23

B. Notes
Forming Part of the Financial Statements

B 2 INVESTMENTS (Contd..)
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
II At cost***
Unquoted investments
(a) Investment in equity instruments:
Subsidiary companies:
50,001 (50,001) equity shares of EUR 0.72 each in Apollo
Tyres (Green Field) B. V. - fully paid up 2.74 2.74
5,390,000 (5,000,000) equity shares of H 10 each in
Apollo Tyres Centre of Excellence Limited - fully paid up 115.13 50.00
Associate company:
3,334 (3,334) equity shares of H 10 each in KT
Telematic Solutions Private Limited - fully paid up 45.01 45.01
(b) Investment in membership interest:
Apollo Tyres Co-operatief U.A. - wholly owned subsidiary 23,973.19 23,973.19
Investments carried at cost 24,136.07 24,070.94
24,213.61 24,146.60
*Aggregate amount of quoted investments at market value 2.06 2.36
**Aggregate amount of unquoted investments at FVTPL 75.48 73.30
***Aggregate amount of unquoted investments at cost 24,136.07 24,070.94

B3 OTHER FINANCIAL ASSETS

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Unsecured, considered good and measured at amortised cost unless
otherwise stated)
Employee advances 14.76 19.06
Security deposits 838.25 615.26
Security deposits to related parties (refer note C17) 313.38 307.97
Investment promotion subsidy receivable (refer note C7(a)) 1,961.13 1,831.66
Derivative assets measured at fair value (refer note C9) 892.35 1,054.60
4,019.87 3,828.55

B4 OTHER NON - CURRENT ASSETS

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Unsecured, considered good unless otherwise stated)
Capital advances 571.87 138.27
Capital advances to related parties (refer note C17) - 194.27
571.87 332.54

Balance with statutory authorities 5.86 2.58

Others - 0.99
577.73 336.11

252
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

B. Notes
Forming Part of the Financial Statements

B5 INVENTORIES (refer note C2)

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(valued at lower of cost and net realizable value)
(i) Raw materials
- In hand 7,224.45 8,574.19
- In transit 606.71 701.50
7,831.16 9,275.69
(ii) Work-in-progress 1,426.58 1,706.10
(iii) Finished goods
- In hand 10,192.85 9,714.94
- In transit 676.45 930.74
10,869.30 10,645.68
(iv) Stock-in-trade
- In hand 1,033.35 1,427.84
- In transit 18.72 23.87
1,052.07 1,451.71
(v) Stores and spares 1,589.57 1,559.74
22,768.68 24,638.92

FINANCIAL ASSETS (CURRENT)

B6 INVESTMENTS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
At fair value through profit and loss:
Quoted Investments
Investment in mutual funds 4,016.94 4,506.06
4,016.94 4,506.06

H Million
Number of Amount in Number of Amount in
Mutual Funds
Units (J Million) Units (J Million)
Aditya Birla Sun Life Overnight Fund - GrowthDirect Plan 415,692.95 504.01 435,319.86 500.48
Axis Overnight Fund - Direct Growth - ONDG 424,618.12 503.41 445,290.88 500.44
Kotak Overnight Fund - Direct Growth 420,524.72 502.86 442,051.36 501.20
HDFC Overnight Fund - Direct Plan Growth option - - 158,363.19 500.02
ICICI Prudential Overnight Fund - Direct Plan Growth 414,343.91 500.73 4,365,688.39 500.34
IDFC Overnight Fund Direct Plan-Growth - - 441,380.74 500.43
Nippon India Overnight Fund - Direct Growth Plan 4,176,122.59 502.66 4,404,201.29 502.60
SBI Overnight Fund Direct Growth 137,282.02 500.98 144,486.08 500.12
UTI Overnight Fund - Direct Growth Plan 163,051.58 500.35 171,971.79 500.43
Bandhan Overnight Fund Direct Plan-Growth 419,831.26 501.94 - -
6,571,467.15 4,016.94 11,008,753.58 4,506.06
Aggregate amount of quoted investments at market value 4,016.94 4,506.06

253
 Apollo Tyres Ltd
Annual Report 2022-23

B. Notes
Forming Part of the Financial Statements

B7 TRADE RECEIVABLES (refer note C24)

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Unsecured and measured at amortised cost unless otherwise stated)
Trade Receivables Considered good* 15,883.94 15,423.01
Trade Receivables which have significant increase in credit risk 24.40 24.40
15,908.34 15,447.41
Provision for loss allowance (24.40) (24.40)
15,883.94 15,423.01
* Includes balances with related parties (refer note C17)

B8 CASH AND CASH EQUIVALENTS

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(i) Balances with banks:
Current accounts 2,307.47 1,854.50
Other deposit accounts
- original maturity of 3 months or less 1,354.50 351.00
(ii) Cheques on hand / remittances in transit 1,340.31 946.78
(iii) Cash on hand 2.12 1.78
5,004.40 3,154.06

B9 BANK BALANCES OTHER THAN CASH AND CASH

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
EQUIVALENTS
Unpaid dividend accounts * 102.20 100.19
Deposits with maturity exceeding 3 months but less than 12 months 0.01 2,000.01
102.21 2,100.20
*These balances are not available for use by the Company and corresponding balance is disclosed as unclaimed dividend in note B18.

B10 OTHER FINANCIAL ASSETS

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Unsecured, considered good and measured at amortized cost unless
otherwise stated)
Employee advances 119.53 126.00
Other recoverables from related parties (refer note C17) 790.85 670.64
Derivative assets measured at fair value (refer note C9) 272.91 87.29
Investment promotion subsidy receivable (refer note C7(a)) 1,181.75 1,181.02
Interest accrued on deposits 0.40 75.06
2,365.44 2,140.01

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Overview Leadership Report Discussion and Analysis Reports Statements

B. Notes
Forming Part of the Financial Statements

NON-FINANCIAL ASSETS (CURRENT)

B11 OTHER CURRENT ASSETS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Unsecured, considered good unless otherwise stated)
Trade advances- considered good 577.34 367.95
Doubtful advances 20.56 20.56
Provision for doubtful advances (20.56) (20.56)
577.34 367.95
Export obligations - advance licence benefit 471.47 481.35
Export incentives recoverable 16.42 120.54
Balance with statutory authorities 964.41 309.04
Gratuity (refer Note C8) 299.24 32.57
Prepaid expenses 380.58 329.87
2,709.46 1,641.32

B12 SHARE CAPITAL

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(a) Authorised
750,000,000 Nos. (750,000,000 Nos.) equity shares of H 1 each 750.00 750.00
150,000,000 Nos. (150.000,000 Nos.) cumulative redeemable preference
shares of H 100 each 15,000.00 15,000.00
15,750.00 15,750.00
(b) Issued, subscribed, called and fully paid up
Equity shares of J 1 each:
635,100,946 Nos. (635,100,946 Nos.) equity shares 635.10 635.10
635.10 635.10

(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, 2023 As on March 31, 2022

Particulars Number of Amount in Number of Amount in
shares J Million shares J Million
Opening balance 635,100,946 635.10 635,100,946 635.10
Add: Issued during the year - - - -
Closing balance 635,100,946 635.10 635,100,946 635.10

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B. Notes
Forming Part of the Financial Statements

B12 SHARE CAPITAL (Contd..)

(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, 2023 As on March 31, 2022

Name of the Shareholder Number of Number of
%age %age
shares shares
Sunrays Properties and Investment Company Private Limited 125,613,324 19.78% 126,593,324 19.93%
Emerald Sage Investment Ltd. 63,050,966 9.93% 63,050,966 9.93%
White IRIS Investment Ltd. 51,054,445 8.04% 51,054,445 8.04%
HDFC Trustee Company Ltd. - A/C its various Fund 54,807,540 8.63% 52,765,288 8.31%
Osiatic Consultants & Investments Pvt. Ltd. - 0.00% 39,041,880 6.15%
Apollo Finance Limited 76,570,752 12.06% 37,528,872 5.91%

(e) Shares held by promoters at the end of the year

March 31, 2023 March 31, 2022

% change % change
during the during the
S. % of year % of year
Promoters Number of Number of
No. total (wrt total total (wrt total
shares shares
shares shares as at shares shares as at
the beginning the beginning
of the year) of the year)
1 Onkar Kanwar 100,000 0.02% 0.00% 100,000 0.02% 0.00%
2 Raaja R S Kanwar 200,880 0.03% 0.00% 200,880 0.03% 0.00%
3 Taru Kanwar 12,250 0.00% 0.00% 12,250 0.00% 0.00%
Sunrays Properties and Investment
4 125,613,324 19.78% -0.15% 126,593,324 19.93% -0.28%
Company Private Limited
Osiatic Consultants & Investments
5 0 0.00% -6.15% 39,041,880 6.15% 0.00%
Pvt.Ltd.
6 Apollo Finance Limited 76,570,752 12.06% 6.15% 37,528,872 5.91% 0.00%
7 Classic Industries & Exports Ltd. 18,696,005 2.94% 0.12% 17,903,505 2.82% -0.04%
8 PTL Enterprises Ltd. 10,745,232 1.69% 0.03% 10,557,732 1.66% 0.36%
9 Amit Dyechem Pvt. Ltd. 1,574,595 0.25% 0.00% 1,574,595 0.25% 0.00%
10 Apollo International Ltd. 984,485 0.16% 0.00% 984,485 0.16% 0.00%
11 Global Capital Ltd. 1,000 0.00% 0.00% 1,000 0.00% 0.00%
12 Shalini Kanwar Chand 1,977,000 0.31% 0.00% 1,977,000 0.31% 0.00%
13 Neeraj Kanwar 671,380 0.11% 0.00% 671,380 0.11% 0.00%
14 Simran Kanwar 18,500 0.00% 0.00% 18,500 0.00% 0.00%
237,165,403 37.34% 0.00% 237,165,403 37.34% 0.03%

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Overview Leadership Report Discussion and Analysis Reports Statements

B. Notes
Forming Part of the Financial Statements

(f) The rights, preferences and restrictions attached to equity shares of the Company

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

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.

(g) Over the period of five years immediately preceding March 31, 2023 and March 31, 2022, neither any bonus shares were
issued nor any shares were allotted for consideration other than cash. Further, no shares were bought back during the
said period.

B12 (a) OTHER EQUITY

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Securities premium 31,317.67 31,317.67
General reserve 17,006.63 17,006.63
Capital reserve on AMHPL merger 1,383.68 1,383.68
Debenture redemption reserve 1,039.50 1,039.50
Capital subsidy 25.50 25.50
Capital redemption reserve 44.40 44.40
Capital reserve on forefeiture of shares 0.07 0.07
Retained earnings 47,472.79 43,699.81
Effective portion of cash flow hedge 42.47 1.16
Revaluation surplus 31.22 31.22
Total other equity 98,363.93 94,549.64

Refer Note C3 for description of nature and purpose of each reserve

NON - CURRENT LIABILITIES

B13 BORROWINGS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Measured at amortised cost
Secured *
(i) Debentures 17,226.44 17,122.07

(ii) Term loans

From banks:
External commercial borrowings (ECB) 2,596.05 4,785.93
Rupee term loan 11,905.30 13,376.14

(iii) Deferred payment liabilities

Deferred payment credit 20.34 25.96
Total borrowings 31,748.13 35,310.10
* For details regarding repayment terms, interest rate and nature of security on non current borrowings (Note B13 (a))

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B. Notes
Forming Part of the Financial Statements

B13 (a) Borrowings

Amount outstanding Amount outstanding

as at March 31, 2023 as at March 31, 2022
(J Million) (J Million) Rate of
Details of
Current Current interest Terms of
Particulars security
Non maturities Non maturities per repayment
offered
current of non current of non annum
borrowings current borrowings current
borrowings borrowings
Non-convertible
debentures
1,150 - 8.65 % Non-
Bullet payment on Refer note
convertible debentures 1,150.00 - 1,150.00 - 8.65%
April 30, 2026 below
of H 1 Million each
1,050 - 8.65 % Non-
Bullet payment on Refer note
convertible debentures 1,050.00 - 1,050.00 - 8.65%
April 30, 2025 below
of H 1 Million each
1,050 - 8.65 % Non-
Bullet payment on Refer note
convertible debentures 1,050.00 - 1,050.00 - 8.65%
April 30, 2024 below
of H 1 Million each
1,500 - 7.80 % Non-
Bullet payment on Refer note
convertible debentures 1,499.18 - 1,499.14 - 7.80%
April 30, 2024 below
of H 1 Million each
900 - 7.50 % Non-
Bullet payment on Refer note
convertible debentures - 900.00 900.00 - 7.50%
October 20, 2023 below
of H 1 Million each
1,500 - 7.80 % Non-
Bullet payment on Refer note
convertible debentures - 1,499.89 1,499.14 - 7.80%
April 28, 2023 below
of H 1 Million each
1,050 - 7.50 % Non-
Bullet payment on Refer note
convertible debentures - - - 1,050.00 7.50%
October 21, 2022 below
of H 1 Million each
1,500 - 7.80 % Non-
Bullet payment on Refer note
convertible debentures - - - 1,499.14 7.80%
April 29, 2022 below
of H 1 Million each
5,000 - 8.75 % Non
Bullet payment on Refer note
Convertible Debentures 4,986.84 - 4,984.96 - 8.75%
April 09, 2030 below *
of H 1 Million each
H 1,250 Million
5,000 - 7.70 % Non payable on May 17,
Refer note
Convertible Debentures 4,992.89 - 4,988.83 - 7.70% 2024 and H 3,750
below
of H 1 Million each Million payable on
May 16, 2025.
2,500 - 6.93 % Non
Bullet payment on Refer note
Convertible Debentures - 2,498.11 - - 6.93%
December 31, 2023 below
of H 1 Million each
2,500 - 7.53 % Non
Bullet payment on Refer note
Convertible Debentures 2,497.53 - - - 7.53%
September 13, 2027 below
of H 1 Million each
Total 17,226.44 4,898.00 17,122.07 2,549.14

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Overview Leadership Report Discussion and Analysis Reports Statements

B. Notes
Forming Part of the Financial Statements

B13 (a) Borrowings (Contd..)

External commercial borrowings (ECB) from banks

Amount outstanding Amount outstanding

as at March 31, 2023 as at March 31, 2022
(J Million) (J Million)
Details of
Current Current Rate of interest
Particulars Terms of repayment security
Non maturities Non maturities per annum
offered
current of non current of non
borrowings current borrowings current
borrowings borrowings
3 Equal annual
0-1% above USD- Refer note
ECB I 683.11 684.79 1,259.84 631.65 instalments starting
LIBOR below
from FY 2022-23
3 Equal annual
0.25-1.25% above Refer note
ECB II 683.47 684.79 1,259.30 631.58 instalments starting
USD-LIBOR below
from FY 2022-23
3 Equal annual
0-1% above USD- Refer note
ECB III 683.16 684.79 1,259.63 631.65 instalments starting
LIBOR below
from FY 2022-23
3 Equal annual
0.25-1.25% above Refer note
ECB IV 546.31 547.83 1,007.17 505.32 instalments starting
USD-LIBOR below
from FY 2022-23
Total 2,596.05 2,602.20 4,785.93 2,400.20

Foreign currency non-resident (FCNR) term loan

Amount outstanding Amount outstanding

as at March 31, 2023 as at March 31, 2022
(J Million) (J Million)
Details of
Current Current Rate of interest
Particulars Terms of repayment security
Non maturities Non maturities per annum
offered
current of non current of non
borrowings current borrowings current
borrowings borrowings
Repayment in 6 equal
Refer
0-1% above USD- semi-annual instalments
FCNR I - - - 93.58 note
LIBOR starting from December
below
31, 2019
Repayment in 6 equal
Refer
0-1% above USD- semi-annual instalments
FCNR II - - - 94.13 note
LIBOR starting from January
below
15, 2020
Repayment in 6 equal
Refer
0-1% above USD- semi-annual instalments
FCNR III - - - 291.98 note
LIBOR starting from
below
September 30, 2020
Total - - - 479.69

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Annual Report 2022-23

B. Notes
Forming Part of the Financial Statements

B13 (a) Borrowings (Contd..)

Rupee term loans

Amount outstanding Amount outstanding

as at March 31, 2023 as at March 31, 2022
(J Million) (J Million)
Details of
Current Current Rate of interest
Particulars Terms of repayment security
Non maturities Non maturities per annum
offered
current of non current of non
borrowings current borrowings current
borrowings borrowings
Rupee Term 0-2% above one Bullet payment on June Refer note
- - - 149.38
Loan I year T-bill 27, 2022 below
Rupee Term 0-2% above one Bullet payment on Refer note
- - - 200.00
Loan II year T-bill March 27, 2023 below
Rupee Term 0-2% above one Bullet payment on Refer note
- 249.63 250.00 -
Loan III year T-bill December 29, 2023 below
33 structured quarterly
Rupee Term Refer note
8,175.05 481.25 8,638.28 265.00 5-6.5% p.a instalments starting
Loan IV below
from March 31, 2022
32 structured quarterly
Rupee Term Refer note
3,730.25 760.00 4,487.86 500.00 6-7% p.a. instalments starting
Loan V below
from April 30, 2022
Total 11,905.30 1,490.88 13,376.14 1,114.38

Deferred payment liabilities

Amount outstanding Amount outstanding

as at March 31, 2023 as at March 31, 2022
(J Million) (J Million)
Rate of
Current Current interest Details of
Particulars Terms of repayment
Non maturities Non maturities per security offered
current of non current of non annum
borrowings current borrowings current
borrowings borrowings
Repayment along Wind Mills
with interest in 240 purchased under
Deferred
20.34 5.62 25.96 5.20 7-8% consecutive monthly the deferred
payment credit
instalments started consideration
from May 15, 2007 payment plan
Total 20.34 5.62 25.96 5.20

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 the above mentioned security an exclusive charge on the immovable property of the Company's registered office in Kochi has also been created for
this NCD issuance for an aggregate amount of H 5,000 Million at 8.75% p.a.

260
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

B. Notes
Forming Part of the Financial Statements

NON - CURRENT LIABILITIES

B 14 PROVISIONS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Provision for constructive liability (refer note C5) 165.41 181.31
Provision for sales related obligations (refer note C5) 327.55 309.13
492.96 490.44

B 15 OTHER NON CURRENT LIABILITIES

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Deferred revenue arising from government grant (refer note C7(b)) 2,404.57 3,764.69
Security deposits - others 205.13 192.68
2,609.70 3,957.37

CURRENT LIABILITIES

B 16 BORROWINGS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
At amortised cost
Secured **
From banks - cash credit * 9.76 4.18
Unsecured
From others - Commercial paper - 2,000.00
Current maturities of non current borrowings
Secured #
(a) Debentures 4,898.00 2,549.14
(b) Term loans:
Foreign currency non-resident term loan - 479.69
External commercial borrowings (ECB) 2,602.20 2,400.20
Rupee Term Loans 1,490.88 1,114.38
(c) Deferred payment liabilities
Deferred payment credit I 5.62 5.20
9,006.46 8,552.79
* Cash credits are repayable on demand. The interest rate on these loans are in the range of 4.00 % p.a. to 7.50 % p.a. (3.00% p.a. to 7.00 % p.a.)
** Secured by a first charge on raw materials, work-in-progress, stocks, stores and book debts.
# For details regarding repayment terms, interest rate and nature of security on current maturities of non current borrowings (Note B13 (a)).

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B. Notes
Forming Part of the Financial Statements

B 17 TRADE PAYABLES (refer note C23) *

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Measured at amortised cost)
Total outstanding dues of micro enterprises and small enterprises 306.28 337.63
Total outstanding dues of creditors other than micro enterprises and
small enterprises
Trade payables 18,055.99 18,562.46
Employee related payables 1,468.21 1,686.19
Payable to related parties (refer note C17) 4,460.60 7,256.85
23,984.80 27,505.50
* Trade payables include commission on net profits payable to whole-time directors H 341.90 million (H 35.94 million) and non-executive directors H 50.00 million
(H 38.00 million).

B 18 OTHER FINANCIAL LIABILITIES

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Measured at amortised cost unless otherwise stated)
Interest accrued but not due on borrowings 1,452.05 1,402.20
Unclaimed dividends # 102.20 100.19
Accounts payable - capital 1,555.37 2,248.36
Payable to micro enterprises and small enterprises - capital (refer note C15) 57.68 121.08
Interest payable to micro, small and medium Enterprises (refer note C15) 10.58 10.58
Payable to related parties (refer note C17) 183.91 147.78
Security deposits 619.53 568.75
Derivative liabilities measured at fair value (refer note C9) 25.18 36.05
4,006.50 4,634.99
# Includes H 7.94 Million (H 5.70 Million) which has not been transferred to the Investor Education and Protection Fund under Section 124 of the Companies Act,
2013, as per the orders/ instructions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992.

CURRENT LIABILITIES
B 19 OTHER CURRENT LIABILITIES
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Deferred revenue arising from government grant (refer note C7(b)) 1,469.00 2,235.65
Statutory dues payable 2,655.77 1,899.73
Advances received from / credit balance of customers (refer note C24) 10,694.51 10,618.24
14,819.28 14,753.62

B 20 PROVISIONS (refer note C5)

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Provision for constructive liability 75.54 49.68
Provision for compensated absences 263.32 259.19
Provision for superannuation 38.91 40.16

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Overview Leadership Report Discussion and Analysis Reports Statements

B. Notes
Forming Part of the Financial Statements

B 20 PROVISIONS (refer note C5) (Contd..)

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Provision for contingencies 425.00 425.00
Provision for sales related obligations 1,269.58 1,173.73
2,072.35 1,947.76

B 21 CURRENT TAX LIABILITIES (NET) (refer note C6)

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Current tax liabilities (net) 208.24 443.87

B 22 OTHER OPERATING INCOME

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Investment promotion subsidy (refer note C7 (a)) 1,106.04 1,211.52
Unwinding of deferred income (refer note C7 (b)) 2,266.57 1,540.68
Scrap sales 580.83 517.97
Others 157.66 156.00
4,111.10 3,426.17

B 23 OTHER INCOME
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
(a) Interest income
- Bank deposits 6.73 206.10
- Others * 216.00 222.73 190.50 396.60
(b) Gain from current investments - Fair value through profit and loss
Mutual funds 55.19 24.15
(c) Others
Profit on sale of property, plant and equipment (net) 37.02 81.39
Gain on foreign currency transactions and translations (net) 371.87 660.57
Miscellaneous income 64.45 473.34 106.25 848.21
751.26 1,268.96
* This includes interest recognised on Government grant (refer note C7 (a))

EXPENSES
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
B 24A Cost of materials consumed * 106,937.72 94,937.71
B 24B Purchase of stock-in-trade:
Purchase of finished goods - tyres, tubes and flaps 9,628.17 8,465.86

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B. Notes
Forming Part of the Financial Statements

EXPENSES (Contd..)
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
B 24C Employee benefits expense: *
Salaries and wages 8,323.60 8,389.02
Contribution to provident and other funds (refer note C8) 630.34 617.65
Staff welfare expenses 1,305.21 1,233.51
10,259.15 10,240.18
B 24D Other expenses: *
Consumption of stores and spare parts 1,326.27 1,098.66
Power and fuel 5,525.74 4,987.03
Conversion charges 900.44 995.56
Repairs and maintenance
- Machinery 384.66 270.59
- Buildings 53.00 42.65
- Others 1,967.59 1,832.20
Rent (refer note C4) 19.14 25.91
Insurance 380.76 325.00
Rates and taxes 98.00 73.48
Sitting fees to non-executive directors (refer note C17) 4.29 4.13
Commission to non-executive directors (refer note C17) 50.00 38.00
Travelling, conveyance and vehicle expenses 1,197.89 844.47
Postage, telephone and stationery 91.53 81.55
Conference 46.32 7.70
Royalty (refer note C17) 127.62 110.68
Freight and forwarding 5,492.17 5,158.52
Commission on sales 152.46 131.46
Advertisement and sales promotion 2,717.36 2,449.53
Corporate social responsibility (refer note C16) 132.25 187.17
Bank charges 19.44 37.94
Statutory auditors' remuneration (refer note C10) 11.85 12.59
Legal and professional 1,422.24 1,145.80
Miscellaneous 2,499.40 2,166.19
24,620.42 22,026.81
151,445.46 135,670.56
* Includes expense towards research and development (refer note C11).

B 25 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
OPENING STOCK
Work in progress 1,706.10 1,663.64
Finished goods 10,645.68 7,637.86
Stock-in-trade 1,451.71 1,017.54
13,803.49 10,319.04

264
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

B. Notes
Forming Part of the Financial Statements

B 25 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS

(Contd..)
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Less:
CLOSING STOCK
Work in progress 1,426.58 1,706.10
Finished goods 10,869.30 10,645.68
Stock-in-trade 1,052.07 1,451.71
13,347.95 13,803.49
455.54 (3,484.45)

B 26 FINANCE COSTS
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Interest on fixed-term loans 1,196.09 1,129.11
Interest on debentures 1,577.42 1,334.98
Interest on current loans 98.99 75.62
Interest on income taxes 260.00 38.48
Interest on lease liabilities (refer note C4) 414.32 455.53
Interest - others 1,078.57 691.16
Other borrowing costs 46.89 96.68
4,672.28 3,821.56

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C. Notes
Forming Part of the Financial Statements

1 Borrowings vi. Capital redemption reserve

Borrowing costs capitalized / transferred to capital work This balance has been created in accordance with
in progress during the year is J 97.55 Million (H 559.07 provision of the Act for the buy back of equity shares
Million) and the capitalisation rate used to determine the from the market.
amount of borrowing costs to be capitalised is the weighted
average interest rate applicable to the Company's general vii. Capital reserve on forfeiture of shares
borrowings during the year, in this case 6.77% p.a. (7.58%
This reserve was created on forfeiture of shares by
p.a.).
the Company. The reserve is not available for the
distribution to the shareholders.
2 Inventories
viii. Retained earnings
The amount of write-down of inventories to net realizable
value recognized as an expense was J 292.26 Million Retained earnings are created from the profit of the
(H 187.52 Million). Company, as adjusted for distribution to owners,
transfer to other reserve, remeasurement of defined
benefit plan, etc.
3 Description of nature and purpose of each
reserve ix. Cash Flow Hedge
i. Securities premium reserve It represents mark-to-market valuation of effective
hedges as required by Ind AS 109 - Financial Instruments.
Securities premium reserve is used to record the
premium on issue of shares. The reserve will be utilised x. Revaluation surplus
in accordance with provisions of the Act.
Revaluation surplus represents increase in carrying
ii. General reserve amount arising on revaluation of land and building
recognised in other comprehensive income and
General reserve is created from time to time by accumulated in reserves.
way of transfer of profits from retained earnings for
appropriation purposes. General reserve is created by 4 Leases
transfer from one component of equity to another and
is not an item of other comprehensive income. i Nature of leasing activities

iii. Capital reserve on Apollo (Mauritius) The Company has entered into lease arrangements for
various warehouses, plant and equipments, and offices
Holdings Private Limited ("AMHPL") merger
that are renewable on a periodic basis with approval of
AMHPL erstwhile (subsidiary company) was merged both lessor and lessee.
with the Company resulting in a capital reserve.
ii The Company does not have any lease commitments
iv. Debenture redemption reserve towards variable rent as per the contract.

The Company is required to create a debenture iii Each lease generally imposes a restriction that, unless
redemption reserve out of the profits which are available there is a contractual right for the Company to sublet
for redemption of debentures. the asset to another party, the right-of-use asset can
only be used by the Company. Leases are either non-
v. Capital subsidy cancellable or may only be cancelled by incurring a
substantive termination fee. The Company is prohibited
This balance represents subsidy received in earlier years from selling or pledging the underlying leased assets
under New Industrial Policy 2007 of the Government of as security. For leases over office buildings and factory
Tamil Nadu for expansion and employment generation premises the Company must keep those properties in a
within SIPCOT Industrial park. good state of repair and return the properties in their
original condition at the end of the lease.

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Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

4 Leases (Contd..)
iv Lease liabilities are presented in the statement of financial position as follows:
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Non current 4,006.33 4,666.99
Current 931.02 849.36
Total 4,937.35 5,516.35

v Lease payments not recognised as a liability

The expense relating to payments not included in the measurement of the lease liability is as follows:
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Short term leases 19.14 25.91
Total 19.14 25.91

vi Changes in the carrying value of right-of-use assets by class of assets is as follows:

H Million
Land & Plant and
Particulars Total
Building * equipment
Gross carrying value
As at April 01, 2022 7,704.97 283.32 7,988.29
Additions 410.97 96.35 507.32
Disposals 168.20 - 168.20
As at March 31, 2023 7,947.74 379.67 8,327.41
Accumulated depreciation
As at April 01, 2022 2,431.65 165.02 2,596.67
Depreciation expense 1,011.89 84.62 1,096.51
Eliminated on disposal 30.88 - 30.88
As at March 31, 2023 3,412.66 249.64 3,662.30
Net carrying value
As at March 31, 2023 4,535.08 130.03 4,665.11

H Million
Land & Plant and
Particulars Total
Building * equipment
Gross carrying value
As at April 01, 2021 7,022.99 155.42 7,178.41
Additions 1,008.07 127.90 1,135.97
Disposals 326.09 - 326.09
As at March 31, 2022 7,704.97 283.32 7,988.29
Accumulated depreciation
As at April 01, 2021 1,675.37 89.01 1,764.38
Depreciation expense 1,016.26 76.01 1,092.27
Eliminated on disposal 259.98 - 259.98
As at March 31, 2022 2,431.65 165.02 2,596.67
Net carrying value
As at March 31, 2022 5,273.32 118.30 5,391.62
* Includes balance with related parties (refer note C17).

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C. Notes
Forming Part of the Financial Statements

4 Leases (Contd..)
vii The following are the amounts recognised in statement of profit and loss
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Depreciation expense of right-of-use assets 1,096.51 1,092.27
Interest expense on lease liabilities 414.32 455.53
Interest income on fair value of security deposit (34.41) (29.00)
Expense relating to short-term leases (included in other expenses) 19.14 25.91
Total 1,495.56 1,544.71

viii Total Cash outflow pertaining to leases during the year ended March 31, 2023 is J 1,363.31 Million (J 1,340.64 Million).
ix Leasehold land is net of J 5.39 Million (H 5.39 Million) subleased to Classic Industries and Exports limited (formerly known
as Classic Auto Tubes Ltd.), a Company in which directors are interested since the year ended 2009-10.

5 Provisions - non current / current

H Million
Non current Current
Provision for Provision for Provision for Provision for Provision for
Particulars Provision for Provision for
sales related constructive compensated sales related constructive
contingencies superannuation
obligation * liability** absences obligation * liability**
As at March 31, 2021 313.63 181.12 233.32 1,098.28 53.93 425.00 31.37
Addition during
- 0.19 259.19 1,173.73 49.68 - 152.71
the year
Utilisation/ reversal
4.50 - 233.32 1,098.28 53.93 - 143.92
during the year
As at March 31, 2022 309.13 181.31 259.19 1,173.73 49.68 425.00 40.16
Addition during
18.42 - 263.32 1,269.58 75.54 - 132.40
the year
Utilisation/ reversal
- 15.90 259.19 1,173.73 49.68 - 133.65
during the year
As at March 31, 2023 327.55 165.41 263.32 1,269.58 75.54 425.00 38.91
* Represents estimates for payments to be made in future for sales related obligations.
** Includes post-employment benefit obligation for the employees of related party engaged at its Kalamassery plant taken on lease by the company.

6 Income taxes
i. Reconciliation between average effective tax rate and applicable tax rate

For the year ended For the year ended

Particulars March 31, 2023 March 31, 2022
J Million Rate (%) J Million Rate (%)
Profit before tax 8,117.67 3,503.52
Income tax using the Company's domestic tax rate 2,836.64 34.94% 1,224.27 34.94%
Tax effect of :
Non deductible expenses 144.36 1.78% 85.99 2.45%
Others (650.71) (8.02%) (417.38) (11.91%)
Income tax expenses recognised in the statement of profit
2,330.29 28.71% 892.88 25.49%
and loss

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Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

6 Income taxes (Contd..)

ii. Components of deferred tax liability (net)
H Million
As on March 31, 2023 As on March 31, 2022
Recognised Recognised Recognised Recognised
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
Loss income Loss income
Tax effect of
items constituting
deferred tax
liabilities
Employee benefits - - - - - - - -
Depreciation and
14,462.79 1,383.35 - 15,846.14 12,528.59 1,934.20 - 14,462.79
amortisation
Others - - - - - - - -
Gross deferred tax
14,462.79 1,383.35 - 15,846.14 12,528.59 1,934.20 - 14,462.79
liabilities (a)
Tax effect of
items constituting
deferred tax assets
Employee benefits - - - - - - - -
Provision for
doubtful debts / - - - - - - - -
advances
Minimum alternate
tax (MAT) 5,696.14 1,477.17 - 7,173.31 5,084.54 611.60 - 5,696.14
entitlement
Carry forward of
1,102.27 (844.35) - 257.92 15.97 1,086.30 - 1,102.27
losses
Others 611.04 (102.61) (48.88) 459.54 694.34 (44.99) (38.31) 611.04
Gross deferred tax
7,409.45 530.21 (48.88) 7,890.77 5,794.85 1,652.91 (38.31) 7,409.45
assets (b)
Net deferred tax
7,053.34 853.14 48.88 7,955.37 6,733.74 281.29 38.31 7,053.34
liability (a - b)

iii. The Company has concluded that the deferred tax assets including assets on carry forward of losses and MAT entitlement
will be fully recoverable using the estimated future taxable income based on the approved business plans and budgets for
the Company.

7 Government grants being the eligible amount of refund of Net Output (VAT
+ CST) /SGST paid by the Company to GoTN.
(a) Investment promotion subsidy
In addition to above, the Company is entitled, for refund
The Government of Tamil Nadu (GoTN) has sanctioned of an amount equal to 1% of the capital investment
a structured package of assistance to the Company for a period of 12 years to be payable in equal annual
for setting up/expansion of their project in the state instalments in the form of Investment Promotion
of Tamil Nadu, pursuant to which a Memorandum of Capital Subsidy (referred to as Phase II). Accordingly,
Understanding (MoU) executed between GoTN and the the Company has recognised grant receivable at its
Company. fair value, amounting to J 1,686.66 Million (H 1,812.72
Million) under non-current financial assets and J 270
The Company is entitled, interalia, for refund of an Million (H 270 Million) under current financial assets.
amount equal to Net Output (VAT + CST)/SGST paid Deferred grant income amounting J 1,492.14 Million
by the Company to GoTN in the form of Investment (H 1,627.79 Million) is recognised under other non-
Promotion Subsidy (referred to as Phase I). As the current liabilities and J 135.65 Million (H 135.65 Million)
Company has fulfilled the relevant obligations, the under other current liabilities. Deferred income will
Company has recognized subsidy income of J 801.35 be recognised in the statement of profit or loss on a
Million (H 995.08 Million) as other operating income,

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C. Notes
Forming Part of the Financial Statements

systematic basis over the useful life of the asset (15 operating income. At the year end, the portion of grant
years). During the year, the Company has recorded for which the export obligation has not been met is
grant income amounting to J 135.65 Million (H 135.65 retained in deferred revenue under other current & non
Million) under Other operating income and accretion current liabilities.
of grant recoverable as finance income amounting to
J 144.94 million (H 154.20 million) under Other income.
8 Employee benefit liability
Also, the Government of Andhra Pradesh (GoAP) has
A. Defined contribution plans
sanctioned a structured package of assistance to the
Company for setting up of their project in the state of a. Superannuation plan: The Company contributes
Andhra Pradesh, pursuant to which a Memorandum of a sum equivalent to 15% of the eligible employees'
Understanding (MoU) executed between GoAP and the basic salary to a superannuation fund administered
Company. The Company is entitled, interalia, for refund and maintained by the Life Insurance Corporation
of an amount equal to Net SGST paid by the Company of India (LIC). The Company has no liability for
to GoAP in the form of Investment Promotion Subsidy. future superannuation fund benefits other than
As the Company has fulfilled the relevant obligations, its annual contribution and recognizes such
the Company has recognized subsidy income of contributions as an expense in the year incurred.
J 169.04 Million (H 80.79 Million) as other operating The amount of contribution made by the Company
income, being the eligible amount of refund of Net to Superannuation Fund is J 132.40 Million (H 152.71
SGST paid by the Company to GoAP. Million).
(b) Export Promotion Capital Goods b. Provident fund: Contributions are made to the
Company’s employees' provident fund trust /
The Company had imported Property, plant and
regional provident fund in accordance with the fund
equipment under the Export Promotion Capital Goods
rules. The interest rate payable to the beneficiaries
(EPCG) scheme wherein the Company is allowed to
every year is being notified by the Government.
import capital goods including spares without payment
of customs duty, subject to certain export obligations In the case of contributions to the trust, the
which should be fulfilled within specified time period. Company has an obligation to make good the
During the year, the custom duty benefit received shortfall, if any, between the return from the
amounts to J 281.46 Million (H 2,591.06 Million) with a investments of the trust and the notified interest
corresponding increase in the value of property, plant rate and recognises such obligation as an expense.
and equipment and Capital Work in Progress. The grant
amounting to J 2,266.57 Million (H 1,540.68 Million) The amount of contributions made by the Company to
where export obligations have been met, have been employees' provident fund trust / regional provident
recognized in Statement of Profit and Loss as other fund is J 360.46 Million (H 326.44 Million).

B. Defined benefit plans

Gratuity

The Company operates a defined benefit gratuity plan. Every employee who has completed five years or more of service
receives gratuity on leaving the Company as per the Payments of Gratuity Act, 1972. The scheme is funded with LIC.

The following table summarizes the components of net benefit expense recognized in the Statement of Profit and Loss
and the funded status and amounts recognized in the balance sheet for the respective plan:

Statement of profit and loss:

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Current service cost ^ 131.84 126.00
Interest cost on benefit obligation * 134.81 109.45
Actual return on plan assets* (137.19) (103.63)
Expense recognized in the statement of profit and loss 129.46 131.82
^ Included in employee benefit expense
* Included in finance cost

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Forming Part of the Financial Statements

8 Employee benefit liability (Contd..)

Other comprehensive income (experience adjustment)
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Actuarial loss/(gain) for the year on defined benefit obligation (80.31) 84.57
Actuarial (gain)/loss for the year on plan asset 3.94 (42.86)
Total (76.37) 41.71

Balance sheet:

Net asset/(liability) recognised in the balance sheet

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Fair value of plan assets at the end of the year (a) 2,240.39 1,874.19
Present value of defined benefit obligation at the end of the year (b) 1,941.15 1,841.62
Net asset/(liability) recognized in the balance sheet (a - b) 299.24 32.57

Changes in the present value of the defined benefit obligation

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Present value of obligations as at the beginning of the year 1,841.62 1,583.90
Interest cost 134.81 109.45
Current service cost 131.84 126.00
Benefits paid (86.81) (62.30)
Actuarial loss/(gain) on obligation (80.31) 84.57
Present value of obligations as at the end of the year 1,941.15 1,841.62

Changes in the fair value of plan assets

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Fair value of plan assets at beginning of the year 1,874.19 1,499.72
Actual return on plan assets 137.19 103.63
Contributions 319.76 290.28
Benefits paid (86.81) (62.30)
Actuarial loss/(gain) on plan assets (3.94) 42.86
Fair value of plan assets as at the end of the year 2,240.39 1,874.19

The Company’s gratuity funds are managed by the Life Insurance Corporation and therefore the composition of the fund
assets is not presently ascertained.

Maturity Profile of Defined Benefit Obligation H Million

As at As at
Particulars
March 31, 2023 March 31, 2022
0 to 1 year 147.95 233.85
1 to 2 year 156.64 85.07
2 to 3 year 130.40 105.48
3 to 4 year 108.92 119.51
4 to 5 year 103.79 95.96
More than 5 years 1,293.45 1,201.75
Total 1,941.15 1,841.62

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C. Notes
Forming Part of the Financial Statements

8 Employee benefit liability (Contd..)

Principal assumptions for gratuity
H Million
As at As at
Particulars March 31, 2023 March 31, 2022
Rate (%) Rate (%)
a) Discount rate 7.50 7.32
b) Future salary increase* 6.00 6.00
c) Retirement age (years) 58/65 58
100% IALM 100% IALM
d) Mortality table
(2012-2014) (2012-2014)
e) Ages (withdrawal rate %)
Up to 30 Years 3.00 3.00
From 31 to 44 Years 2.00 2.00
Above 44 Years 1.00 1.00
* The estimates of future salary increase take into account inflation, seniority, promotion and other relevant factors.

Estimated amount of contribution in the immediate next year is J 122.36 Million (H 131.56 Million).

Sensitivity analysis of the defined benefit obligation

H Million
Discount Salary Attrition
Impact of change in
rate increase rate
Present value of obligation as on March 31, 2023 1,941.15 1,941.15 1,941.15
Impact due to increase of 0.50% (93.29) 102.09 0.67
Impact due to decrease of 0.50% 101.11 (94.99) (0.55)

H Million
Discount Salary Attrition
Impact of change in
rate increase rate
Present value of obligation as on March 31, 2022 1,841.62 1,841.62 1,841.62
Impact due to increase of 0.50% (80.25) 87.80 0.58
Impact due to decrease of 0.50% 87.10 (81.58) (0.46)

C. Other long term employee benefits

Long term compensated absences
Principal assumptions for long term compensated absences
H Million
As at As at
Particulars March 31, 2023 March 31, 2022
Rate (%) Rate (%)
a) Discount rate 7.50 7.32
b) Future salary increase* 6.00 6.00
c) Retirement age (years) 58 /65 58.00
100% IALM 100% IALM
d) Mortality table
(2012-2014) (2012-2014)
e) Ages (withdrawal rate %)
Up to 30 Years 3.00 3.00
From 31 to 44 Years 2.00 2.00
Above 44 Years 1.00 1.00
* The estimates of future salary increase take into account inflation, seniority, promotion and other relevant factors.

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C. Notes
Forming Part of the Financial Statements

9 Financial instrument
A. Capital risk management
The capital structure of the Company consists of debt, cash and cash equivalents and equity attributable to equity
shareholders of the Company which comprises issued share capital (including premium) and accumulated reserves
disclosed in the Statement of Changes in Equity.

The Company's capital management objective is to achieve an optimal weighted average cost of capital while continuing
to safeguard the Company's ability to meet its liquidity requirements (including its commitments in respect of capital
expenditure) and repay loans as they fall due.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend 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 within debt, interest bearing loans and borrowings.
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Non current borrowings (refer note B13) 31,748.13 35,310.10
Current borrowings * (refer note B16) 9,006.46 8,552.79
Sub total (a) 40,754.59 43,862.89
Equity (refer note B12) 635.10 635.10
Other equity (refer note B12(a)) 98,363.93 94,549.64
Sub total (b) 98,999.03 95,184.74
Capital gearing ratio ((a) / (b)) 0.41 0.46
* Includes current maturities of long term borrowings.

B. Financial risk management

a. Market risk

The Company's activities expose it primarily to the financial risk of changes in foreign currency exchange rates and
changes in interest rates. The Company enters into a variety of derivate financial instrument to manage its exposure
to foreign currency and interest rates. There have been no changes to the Company's exposure to market risk or the
manner in which it manages and measures the risk in recent past.

i) Currency risk

The Company's exposure arises mainly on import of raw material and capital items and export of finished goods.
The Company follows a policy of matching of import and export exposures (natural hedge) to reduce the net
exposure in any foreign currency. 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.

Currency wise net exposure of the Company

H Million
As at March Sensitivity Sensitivity As at March Sensitivity Sensitivity
Currency
31, 2023 + 5% -5% 31, 2022 + 5% -5%
USD (1,473.18) (73.66) 73.66 (2,276.80) (113.84) 113.84
Euro 90.09 4.50 (4.50) 1,336.04 66.80 (66.80)
GBP (77.41) (3.87) 3.87 (169.12) (8.46) 8.46
Others 649.67 32.48 (32.48) 501.76 25.09 (25.09)

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C. Notes
Forming Part of the Financial Statements

9 Financial instrument (Contd..)

ii) Interest rate risk agencies, publicly available financial information or

its own past trading records and trends.
The Company is exposed to interest rate risk as
the Company borrows funds at both fixed and At the year end, the Company did not consider
floating interest rates. The risk is managed by there to be any significant concentration of credit
the Company by maintaining an appropriate risk which had not been adequately provided
mix between fixed and floating rate borrowings. for. The carrying amount of the financial assets
The use of interest rate swaps are also entered recorded in the financial statements, grossed up for
into, especially to hedge the floating rate any allowances for losses, represents the maximum
borrowings or to convert the foreign currency exposure to credit risk.
floating interest rates to the domestic currency
floating interest rates. c) Liquidity risk

Interest on variable rate borrowings are The Company manages liquidity risk by maintaining
converted at fixed rate since company had adequate reserves and banking facilities, by
hedged interest rate risk fully and effectively continuously monitoring forecast and actual cash
with the hedging instruments. flows and by matching the maturity profiles of
financial assets and liabilities for the Company.
b) Credit risk
The Company had established an appropriate
Credit risk is the risk that counterparty will default liquidity risk management framework for it's
on its contractual obligations resulting in financial short term, medium term and long term funding
loss to the Company. The Company had adopted a requirement.
policy of only dealing with creditworthy customers.
d) Commodity risk
In many cases an appropriate advance or letter of
credit / bank guarantee is taken from the customers The Company has risk of price volatility and supply
to cover the risk. In other cases credit limit is granted against its major raw materials and management is
to customer after assessing the credit worthiness mitigating this risk by taking strategic decision on
based on the information supplied by credit rating regular basis.

The below tables summarise the maturity profile (undiscounted) of the Company's financial assets and financial
liabilities
i. Non derivative financial assets
H Million
As on March 31, 2023 As on March 31, 2022
Particulars Less than 1 to 5 5 years Less than 1 to 5 5 years
1 year years and above 1 year years and above
Non-interest bearing 25,745.11 1,913.88 25,427.25 24,809.98 1,603.44 25,317.11
Fixed interest rate instruments 1,354.91 - - 2,426.07 - -

ii. Non derivative financial liabilities

H Million
As at March 31, 2023 As at March 31, 2022
Particulars Less than 1 to 5 5 years Less than 1 to 5 5 years
1 year years and above 1 year years and above
Non-interest bearing 26,820.35 - - 31,039.87 - -
Lease liability 931.02 2,637.23 1,369.10 849.36 2,702.46 1,964.53
Variable interest rate instruments 5,545.14 10,556.81 3,944.06 5,396.47 10,919.68 7,242.39
Fixed interest rate instruments 4,913.58 12,259.73 4,986.84 4,558.52 12,162.45 4,985.58

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C. Notes
Forming Part of the Financial Statements

9 Financial instrument (Contd..)

iii. Derivative assets / (liabilities)
H Million
As at March 31, 2023 As at March 31, 2022
Particulars Less than 1 to 5 5 years Less than 1 to 5 5 years
1 year years and above 1 year years and above
Net settled:
Foreign currency forward contracts,
futures and options measeured at (25.18) - - (36.05) - -
FVTPL
Foreign currency forward contracts,
futures and options measeured at - - - 87.29 - -
FVTPL
Gross settled:
Cross currency interest rate swaps
272.91 892.35 - - 1,054.60 -
measeured at FVTOCI
Total 247.73 892.35 - 51.24 1,054.60 -

Interest rate swap

The Company had an interest rate swap agreement whereby the Company receives a fixed rate of interest of
6.5% to 7.5% and pays interest at a variable rate. The swap is being used to hedge the exposure to changes in the
fair value of its fixed rate secured loan. The decrease in fair value of the interest rate swap had been recognised
in finance costs and offset with a similar gain on the bank borrowings. The ineffectiveness recognised in March
31, 2023 was immaterial.

Foreign exchange forward contracts

While the Company entered into other foreign exchange forward contracts with the intention of reducing
the foreign exchange risk of expected sales and purchases, these other contracts are not designated in hedge
relationships and are measured at fair value through profit or loss.

d) The below tables summarise the fair value of the financial assets / liabilities

i. Fair value of derivative instruments carried at fair value

H Million
Fair value
As at As at
Particulars hierarchy
March 31, 2023 March 31, 2022
(Level 1, 2 or 3) *
Derivative financial assets (a)
- Foreign currency forward contracts, futures and
- 87.29 2
options measeured at FVTPL
- Cross currency interest rate swaps measeured at
1,165.26 1,054.60 2
FVTOCI
Total 1,165.26 1,141.89
Derivative financial liabilities (b)
- Foreign currency forward contracts measeured at
25.18 36.05 2
FVTPL
Total 25.18 36.05
Net derivative financial assets (a - b) 1,140.08 1,105.84

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C. Notes
Forming Part of the Financial Statements

9 Financial instrument (Contd..)

ii. Fair value of financial assets (other than derivative instruments) carried at fair value
H Million
Fair value
As at As at hierarchy
Particulars
March 31, 2023 March 31, 2022 (Level 1, 2 or
3) *
Financial assets
– Non current investments - quoted 2.06 2.36 1
– Non current investments - unquoted 75.48 73.30 3
– Current investments - quoted 4,016.94 4,506.06 1
Total 4,094.48 4,581.72

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 (unadjusted) market prices in active markets for identical assets or liabilities.

* Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.

* Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

e) Details of outstanding contracts #

Currency Average Nominal

Currency
Currency pair value Exchange value Buy/Sell
(Million) rate (Million)
As at March 31, 2023
Foreign currency forward contracts
USD / INR US Dollar 5.00 82.38 411.88 Buy
USD / THB US Dollar 6.00 33.77 202.60 Buy
USD / ZAR US Dollar 1.13 18.15 20.42 Buy
EUR / USD Euro 1.95 1.08 2.11 Sell
Futures and options
USD / INR US Dollar 23.00 83.38 1,917.74 Buy
USD / INR US Dollar 46.00 83.61 3,846.06 Sell
Cross currency interest swaps
USD / INR US Dollar 63.33 82.18 5,204.14 Buy
As at March 31, 2022
Foreign currency forward contracts
USD / INR US Dollar 21.95 75.80 1,663.76 Buy
USD / THB US Dollar 6.00 33.21 199.27 Buy
USD / ZAR US Dollar 1.13 14.58 16.40 Buy
EUR / INR Euro 4.60 84.07 386.74 Sell
Futures and options
USD / INR US Dollar 29.00 75.80 2,198.13 Buy
USD / INR US Dollar 44.50 75.80 3,372.99 Sell
Cross currency interest swaps
USD / INR US Dollar 104.50 75.80 7,920.58 Buy
# For fair value of outstanding contracts, refer note C9 (d)(i).

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C. Notes
Forming Part of the Financial Statements

9 Financial instrument (Contd..)

f) Impact of hedging activities

(1) Disclosures of effects of hedge accounting on balance sheet:

Carrying amount Change in

of hedging value of
instruments Change in hedged item
Notional (J Million) Strike fair value used as the
Type of hedge and Hedge
amount Maturity dates price of hedging basis for
risks ratio
(Million) range instruments recognising
Assets Liabilities (J Million) hedge
effectiveness
(J Million)
As at March 31, 2023
Cash flow hedge
Foreign exchange
and interest rate risk
Cross Currency Swaps
USD June-2022 to 63.95
USD / INR 1,165.26 - 1:1 508.75 (508.75)
63.33 September-2024 to 67.5
(Carrying value of firm commitments for capital assets is J Nil (H 0.99 million) and is recognised in other non-current assets
as others)

Carrying amount Change in

of hedging value of
instruments Change in hedged item
Notional (J Million) Strike fair value used as the
Type of hedge and Hedge
amount Maturity dates price of hedging basis for
risks ratio
(Million) range instruments recognising
Assets Liabilities (J Million) hedge
effectiveness
(J Million)

As at March
31, 2022
Cash flow hedge
Foreign exchange
and interest rate risk
Cross Currency Swaps
USD June-2022 to 63.95
USD / INR 1,054.60 - 1:1 (416.46) 416.46
104.50 September-2024 to 67.5
Fair value hedge
Foreign exchange
risk
Foreign currency
forward contracts
76.105
USD
USD/INR - (0.99) Apr-22 1:1 to (0.99) 0.99
8.45
76.105
(Carrying value of firm commitments for capital assets is H 0.99 million and is recognised in other non-current
assets as others)

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C. Notes
Forming Part of the Financial Statements

9 Financial instrument (Contd..)

(2) Disclosure of effects of hedge accounting on statement of profit and loss
H Million
Change in value
of hedging Amount
Line item
instrument Hedge reclassified
affected on
Type of hedge recognised ineffectiveness from cash
reclassification
in other recognised flow hedge
comprehensive reserve
income
For the year ended March 31, 2023
Cash flow hedge
Foreign exchange and interest rate risk 508.75 - 160.53 Finance Cost
Gain on foreign
currency
(605.78) transactions
and
translations

H Million
Change in value
of hedging Amount
Line item
instrument Hedge reclassified
affected on
Type of hedge recognised ineffectiveness from cash
reclassification
in other recognised flow hedge
comprehensive reserve
income
For the year ended March 31, 2022
Cash flow hedge
Foreign exchange and interest rate risk (416.46) - 626.91 Finance Cost
Gain on foreign
currency
(59.09) transactions
and
translations

(3) Movement in cash flow hedging reserve

H Million
Foreign currency and
Particulars
interest rate risk
Cash flow hedge reserve
Balance as at April 01, 2021 (97.31)
Add: Changes in fair value of cross currency swaps (416.46)
Less: Amount reclassified to Profit and loss 567.82
Less: Deferred tax relating to above (net) (52.89)
Balance as at March 31, 2022 1.16
Add: Changes in fair value of cross currency swaps 508.75
Less: Amount reclassified to Profit and loss (445.25)
Less: Deferred tax relating to above (net) (22.19)
Balance as at March 31, 2023 42.47

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Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

10 Statutory auditors’ remuneration

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
For audits and quarterly reviews 11.00 10.50
For reimbursement of expenses 0.42 0.34
For other services 0.43 1.75
Total 11.85 12.59

11 Research and development expenditure

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Revenue expenditure 1,404.11 1,443.74
Capital expenditure 541.76 35.90
Total 1,945.87 1,479.64

The company carries out research and development activities to bring cutting edge technology and innovation in relation to
tyre manufacturing.

12 Contingent liabilities
a
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Sales tax 65.23 60.77
Income tax 1,771.63 1,670.51
Claims against the Company not acknowledged as debts – employee related 116.51 160.29
– others 35.80 32.30
Excise duty, Custom duty and Service tax * 671.42 661.81
* Show-cause notices received from various Government Authorities 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.

b The Competition Commission of India ('CCI') on February 2, 2022 had released its order dated August 31, 2018 on the
Company, other Tyre Manufacturers and Automotive Tyre Manufacturer Association alleging contravention of the
provisions of the Competition Act, 2002 in the year 2011-12 and imposed a penalty of H 4,255.30 Million on the Company.
The Company had filed an appeal against the CCI Order before the Honourable National Company Law Appellate Tribunal
(NCLAT). NCLAT in its order dated December 1, 2022, had remanded the matter back to the CCI to hear the parties again
and review its findings. CCI has filed an Appeal before the Supreme Court against the Order passed by the NCLAT. The
Company is also a Respondent in the said Appeal. Pending disposal of the matter and based on legal advice the Company
believes that it has a strong case and accordingly no provision is considered in these consolidated financial statements.

279
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Annual Report 2022-23

C. Notes
Forming Part of the Financial Statements

13 Capital and other commitments

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
A Capital commitments
Estimated amount of contracts remaining to be executed on capital
747.46 3,963.51
account and not provided for
B Other commitments
Corporate guarantee given* (refer note C24) 1,471.39 1,849.54
*The company had provided corporate guarantee on behalf of its wholly owned subsidiary Apollo Tyres Cooperatief U.A.

14 The Company conducts international transactions with associated enterprises. For the current year, the management
maintained necessary documents as prescribed by the Income Tax Act, 1961 to establish that these international transactions
are at arm’s length and that aforesaid legislation will not have any impact on the financial statements, particularly on the
amount of tax expense and that of provision for taxation.

15 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development
Act, 2006
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
(i) Principal amount remaining unpaid to any supplier as at the end of the
694.40 904.49
accounting year
(ii) Interest due thereon remaining unpaid to any supplier as at the end of the
10.58 10.58
accounting year
(iii) The amount of interest paid along with the amounts of the payment made
- -
to the supplier beyond the appointed day
(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
10.58 10.58
accounting year
(vi)The amount of further interest due and payable even in the succeeding
10.58 10.58
year, until such date when the interest dues as above are actually paid

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

16 Expenditure towards corporate social responsibility (CSR) activities -

In accordance with the provisions of section 135 of the Act, the Board of Directors of the Company
had constituted a CSR committee. The details for CSR activities are as follows:
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
i) Gross amount required to be spent by the Company during the year 132.25 163.89
ii) Amount spent during the year on the following:
(a) Construction/acquisition of any asset - -
(b) On purposes other than (a) above 132.25 163.89
iii) Amount unspent during the year and deposited in a scheduled bank - -
iv) Amount spent during the year pertaining to previous year - 23.28
v) Shortfall at the end of the year - -
vi) Reason of Shortfall NA NA

280
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Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

16 Expenditure towards corporate social responsibility (CSR) activities -

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
vii) Details of related party transactions in
- -
relation to CSR expenditure as per relevant Accounting Standard"
Total 132.25 187.17

Nature of CSR activities: Healthcare, Solid Waste Management & Sanitation, Livelihood for Rural Women, Biodiversity
Conservation

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
Name of the Related Parties

Particulars For the year ended March 31, 2023 For the year ended March 31, 2022
Apollo Tyres Cooperatief U.A.,(AT Coop), Apollo Tyres Cooperatief U.A.,(AT Coop),
Netherlands Netherlands
Apollo Tyres (Greenfield) B.V., Netherlands Apollo Tyres (Greenfield) B.V., Netherlands
Apollo (South Africa) Holdings (Pty) Ltd. Apollo (South Africa) Holdings (Pty) Ltd.
(ASHPL) (Subsidiary through AT Coop) (ASHPL) (Subsidiary through AT Coop)
Apollo Tyres Africa (Pty) Ltd. Apollo Tyres Africa (Pty) Ltd. (Subsidiary
(Subsidiary through ASHPL) through ASHPL)
Apollo Tyres (Thailand) Limited, Thailand Apollo Tyres (Thailand) Limited, Thailand
(Subsidiary through AT Coop) (Subsidiary through AT Coop)
Apollo Tyres (Middle East) FZE (ATFZE), Dubai Apollo Tyres (Middle East) FZE (ATFZE), Dubai
(Subsidiary through AT Coop) (Subsidiary through AT Coop)
Apollo Tyres Holdings (Singapore) Pte. Ltd., Apollo Tyres Holdings (Singapore) Pte. Ltd.,
(ATHS), Singapore (ATHS), Singapore (Subsidiary through AT
(Subsidiary through AT Coop) Coop)
Apollo Tyres (Malaysia) SDN. BHD (Subsidiary Apollo Tyres (Malaysia) SDN. BHD (Subsidiary
through ATHS) (note a) through ATHS) (note a)
Apollo Tyres (UK) Holdings Ltd (Formerly Apollo Tyres (UK) Holdings Ltd (Formerly
Apollo Tyres (UK) Pvt Ltd) (ATUK) (Subsidiary Apollo Tyres (UK) Pvt Ltd) (ATUK) (Subsidiary
Subsidiaries through AT Coop) through AT Coop)
Apollo Tyres (London) Pvt. Ltd. (Subsidiary Apollo Tyres (London) Pvt. Ltd. (Subsidiary
through ATUK) through ATUK)
Apollo Tyres Global R&D B.V. (Subsidiary Apollo Tyres Global R&D B.V. (Subsidiary
through AT Coop) through AT Coop)
Apollo Tyres (R&D) GmbH (Formerly Apollo Apollo Tyres (R&D) GmbH (Formerly Apollo
Tyres (Germany) GmbH) (Subsidiary through Tyres (Germany) GmbH) (Subsidiary through
AT Coop) AT Coop)
Apollo Tyres AG, Switzerland (AT AG) Apollo Tyres AG, Switzerland (AT AG)
(Subsidiary through AT Coop) (Subsidiary through AT Coop)
Apollo Tyres do (Brasil) LTDA (Subsidiary Apollo Tyres do (Brasil) LTDA (Subsidiary
through ATCoop and ATEU) through ATCoop and ATEU)
Apollo Tyres (Europe) B.V. (Formerly Apollo Apollo Tyres (Europe) B.V. (Formerly Apollo
Tyres B.V.) (ATEU), Netherlands (Subsidiary Tyres B.V.) (ATEU), Netherlands (Subsidiary
through ATEU) through ATEU)
Apollo Tyres (Hungary) Kft (Subsidiary Apollo Tyres (Hungary) Kft (Subsidiary
through ATEU) through ATEU)
Reifencom GmbH, Hannover (Subsidiary Reifencom GmbH, Hannover (Subsidiary
through AT Coop) through AT Coop)

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Annual Report 2022-23

C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)

Particulars For the year ended March 31, 2023 For the year ended March 31, 2022
Reifencom Tyre (Qingdao) Co., Ltd. Reifencom Tyre (Qingdao) Co., Ltd.
(Subsidiary through Reifencom GmbH, (Subsidiary through Reifencom GmbH,
Hannover) Hannover)
Saturn F1 Pvt Ltd (Subsidiary through AT Saturn F1 Pvt Ltd (Subsidiary through AT
Coop) Coop)
ATL Singapore Pte Limited (note b) ATL Singapore Pte Limited (note a)
Apollo Tires (US) Inc. (Formerly Apollo Apollo Tires (US) Inc. (Formerly Apollo
Vredestein Tires Inc.) (Subsidiary through AT Vredestein Tires Inc.) (Subsidiary through AT
Coop) Coop)
Apollo Tyres (NL) B.V. (Formerly Apollo Apollo Tyres (NL) B.V. (Formerly Apollo
Vredestein B.V.) (ATNL) (Subsidiary through Vredestein B.V.) (ATNL) (Subsidiary through
ATEU) ATEU)
Apollo Tyres Centre of Excellence Limited Apollo Tyres Centre of Excellence Limited
Subsidiaries of Apollo Tyres (NL) B.V.: Subsidiaries of Apollo Vredestein B.V (AVBV):
Apollo Tyres (Germany) GmbH (Formerly Apollo Tyres (Germany) GmbH (Formerly
Apollo Vredestein GmbH) (AT GmbH) Apollo Vredestein GmbH) (AT GmbH)
Apollo Tyres (Nordic) A.B. Apollo Tyres (Nordic) A.B.
(Formerly Apollo Vredestein Nordic A.B.) (Formerly Apollo Vredestein Nordic A.B.)
Apollo Tyres (UK) Sales Ltd (Formerly Apollo Apollo Tyres (UK) Sales Ltd (Formerly Apollo
Vredestein (UK) Limited) Vredestein (UK) Limited)
Apollo Tyres (France) SAS (Formerly Apollo Apollo Tyres (France) SAS (Formerly Apollo
Vredestein France SAS) Vredestein France SAS)
Apollo Tyres (Belux) SA (Formerly Apollo Apollo Tyres (Belux) SA (Formerly Apollo
Vredestein Belux) Vredestein Belux)
Apollo Tyres (Austria) Gesellschaft m.b.H. Apollo Tyres (Austria) Gesellschaft m.b.H.
(Formerly Apollo Vredestein Gesellschaft (Formerly Apollo Vredestein Gesellschaft
m.b.H.) m.b.H.)
Apollo Tyres (Schweiz) AG (Formerly Apollo Apollo Tyres (Schweiz) AG (Formerly Apollo
Vredestein Schweiz AG) Vredestein Schweiz AG)
Apollo Tyres Iberica S.A. (Formerly Apollo Apollo Tyres Iberica S.A. (Formerly Apollo
Vredestein Iberica SAU) Vredestein Iberica SAU)
Apollo Tyres (Hungary) Sales Kft (Formerly Apollo Tyres (Hungary) Sales Kft (Formerly
Apollo Vredestein Kft) (AT Kft) Apollo Vredestein Kft) (AT Kft)
Apollo Tyres (Polska) Sp. Z.o.o. (Formerly Apollo Tyres (Polska) Sp. Z.o.o. (Formerly
Apollo Vredestein Opony Polska Sp. Z.o.o.) Apollo Vredestein Opony Polska Sp. Z.o.o.)
Vredestein Consulting B.V.,Netherlands Vredestein Consulting B.V.,Netherlands
Finlo B.V. Netherlands Finlo B.V. Netherlands
Associate KT Telematic Solutions Private Limited KT Telematic Solutions Private Limited
PanAridus LLC, USA (JV through ATHS) PanAridus LLC, USA (JV through ATHS)
Joint venture
(note(c)) (note(c))
Apollo International Limited Apollo International Limited
Apollo International FZC Apollo International FZC
SunLife Tradelinks (P) Ltd. SunLife Tradelinks (P) Ltd.
Nutriburst India Pvt. Ltd. Nutriburst India Pvt. Ltd.
Companies in which
Classic Industries and Exports Limited Classic Industries and Exports Limited
directors are interested
PTL Enterprises Ltd. PTL Enterprises Ltd.
Artemis Medicare Services Ltd. Artemis Medicare Services Ltd.
Shardul Amarchand Mangaldas & Co. Shardul Amarchand Mangaldas & Co.
Regent Properties Regent Properties

282
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Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)

Particulars For the year ended March 31, 2023 For the year ended March 31, 2022
Mr. Onkar Kanwar # Mr. Onkar Kanwar
Mr. Neeraj Kanwar Mr. Neeraj Kanwar
Mr. Satish Sharma Mr. Satish Sharma
Mr. Akshay Chudasama Mr. Akshay Chudasama
Gen. Bikram Singh (Retd.) Gen. Bikram Singh (Retd.)
Mr. Francesco Gori Mr. Francesco Gori
Ms. Pallavi Shroff Ms. Pallavi Shroff
Key management
Mr. Robert Steinmetz Mr. Robert Steinmetz
personnel
Mr. Sunam Sarkar Mr. Sunam Sarkar
Mr. Vikram S. Mehta Mr. Vikram S. Mehta
Mr. Vinod Rai Mr. Vinod Rai
Mr. Francesco Cripino Ms. Anjali Bansal
Mr. Vishal Kashyap Mahadevia Mr. Francesco Cripino
Ms. Lakshmi Puri Mr. Vishal Kashyap Mahadevia
Dr. Jaimini Bhagwati * Ms. Lakshmi Puri

Notes: Related parties and their relationships are as identified by the management and relied upon by the auditors. All
transactions are conducted in the ordinary course of business and at arm's length.

(a) In the process of liquidation.

(b) Liquidated during the year

(c) The 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 joint venture.

# Ceased to be a wholetime director and re-appointed as non executive director w.e.f. 1st Feb 2023
* Appointed during the year

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Annual Report 2022-23

C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
Transactions and balances with Related Parties:
FY 2022-23
H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Description of transactions:
Sales: Finished goods
Apollo Tyres Global R&D B.V. 1.59 1.59
Apollo Tyres (NL) B.V. 4,533.59 4,533.59
Apollo Tyres (Middle East) FZE 5,295.71 5,295.71
Apollo Tyres (Thailand) Limited 2,281.34 2,281.34
Apollo Tyres Africa (Pty) Ltd 1,383.29 1,383.29
Apollo Tyres (Malaysia) SDN BHD - -
Apollo Tyres (Hungary) Kft. 152.23 152.23
Apollo Tires (US) INC. 3,554.31 3,554.31
Apollo International FZC 55.44 55.44
Apollo International Trading LLC, Middle East - -
Apollo International Limited 211.31 211.31
17,202.06 266.75 - - 17,468.81
Sales: Raw materials
Classic Industries and Exports Ltd. 859.15 859.15
Investments made:
Apollo Tyres Centre of Excellence Limited 65.13 65.13
Royalty income:
Apollo Tyres Middle East Fze. 19.82 19.82
Apollo Tyres Thailand Ltd. 15.37 15.37
Apollo Tyres Africa (Pty) Ltd 50.09 50.09
85.28 - - - 85.28
Cross charge of management and other
expenses received :
Apollo Tyres (NL) B.V. 133.91 133.91
Apollo Tyres (Middle East) FZE 1.65 1.65
Apollo Tyres Global R&D B.V. 3.01 3.01
Apollo Tyres (UK) Holdings Ltd. 0.67 0.67
Apollo Tyres (Thailand) Limited 2.12 2.12
Apollo Tyres Africa (Pty) Ltd 1.94 1.94
Apollo Tyres (Hungary) Kft. 127.51 127.51
Apollo Tyres Holdings (Singapore) Pte Ltd 66.93 66.93
Apollo Tyres (Malaysia) SDN BHD - -
Apollo Tires (US) INC. 98.99 98.99
Apollo Tyres Centre of Excellence Limited 2.12 2.12
Artemis Medicare Services Ltd. 0.60 0.60
PTL Enterprises Ltd. 0.85 0.85
Classic Industries and Exports Limited 1.69 1.69
438.85 3.14 - - 441.99

284
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Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Cross charges for business support
services paid:
Apollo Tyres Centre Of Excellence Limited -
Cross charges for facility mgt. & support
services received:
Apollo Tyres Centre Of Excellence Limited -
Rent received:
Classic Industries and Exports Limited 1.06 1.06
PTL Enterprises Ltd. 0.39 0.39
- 1.45 - - 1.45
Reimbursement of expenses received:
Apollo Tyres (NL) B.V. 219.20 219.20
Apollo Tyres (Middle East) FZE 4.31 4.31
Apollo Tyres Global R&D B.V. 14.81 14.81
Apollo Tyres (Thailand) Limited 6.69 6.69
Apollo Tyres (UK) Holdings Ltd. 31.33 31.33
Apollo Tyres Africa (Pty) Ltd 2.66 2.66
Apollo Tyres (Hungary) Kft. 108.77 108.77
Apollo Tyres Holdings (Singapore) Pte Ltd 104.78 104.78
Apollo Tyres AG 94.83 94.83
Saturn F1 Pvt Ltd 2.52 2.52
Apollo Tires (US) INC. 9.06 9.06
Classic Industries and Exports Limited 13.59 13.59
598.96 13.59 - - 612.55
Freight and insurance recovered:
Apollo Tyres (Middle East) FZE 502.26 502.26
Apollo Tyres (Thailand) Limited 45.49 45.49
Apollo Tyres Africa (Pty) Ltd 139.73 139.73
Apollo Tyres (NL) B.V. 754.23 754.23
Apollo Tyres Global R&D B.V. 2.67 2.67
Apollo Tyres (Hungary) Kft. 23.62 23.62
Apollo Tires (US) INC. 1,236.14 1,236.14
2,704.14 - - - 2,704.14
Royalty expense:
Apollo Tyres AG, Switzerland 127.62 127.62
Purchase of raw material
Apollo Tyres Holdings (Singapore) Pte Ltd. 35,054.75 35,054.75
Purchase of stock in trade:
Apollo Tyres (NL) B.V. 166.87 166.87
Classic Industries and Exports Limited 4,410.12 4,410.12
166.87 4,410.12 - - 4,576.99

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C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Purchase of asset:
Apollo Tyres (NL) B.V. 2.02 2.02
Apollo Tyres (Hungary) Kft. 4.11 4.11
Classic Industries and Exports Limited 625.04 625.04
Palazzo Design Limited 2.68 2.68
6.13 627.72 - - 633.85
Legal and professional charges paid:
Shardul Amarchand Mangaldas & Co 6.96 6.96
Purchase of license:
Artemis Medicare Services Ltd. 45.50 45.50
Reimbursement of expenses paid:
Apollo Tyres (NL) B.V. 39.51 39.51
Apollo Tyres (Thailand) Limited 34.35 34.35
Apollo Tyres (Middle East) FZE 6.72 6.72
Apollo Tyres (UK) Holdings Ltd. 11.15 11.15
Apollo Tyres Global R&D B.V. 91.19 91.19
Apollo Tyres Africa (Pty) Ltd 0.90 0.90
Apollo Tires (US) INC. 5.94 5.94
PTL Enterprises Ltd. 639.56 639.56
Classic Industries and Exports Limited 10.00 10.00
189.76 649.56 - - 839.32
Payment for services received:
Artemis Medicare Services Ltd. 24.40 24.40
KT Telematic Solutions Private Limited 0.51 0.51
Classic Industries and Exports Ltd. 24.39 24.39
- 48.79 0.51 - 49.30
Cross charge of R & D expenses paid:
Apollo Tyres Global R & D B.V. 475.19 475.19
Cross charge of other expenses paid:
Apollo Tyres (UK) Holdings Ltd. 774.64 774.64
Saturn F1 Pvt Ltd 158.94
Apollo Tyres Centre of Excellence Limited 119.94
Apollo Tyres Holdings (Singapore) Pte Ltd 273.41 273.41
1,326.93 - - - 1,048.05
Lease rent paid:
PTL Enterprises Ltd. 611.20 611.20
Rent paid:
Sunlife Tradelinks (P) Ltd. 36.00 36.00
Regent Properties 21.34 21.34
Classic Industries and Exports Ltd. 0.12 0.12
- 57.46 - - 57.46
Mixing charges paid:
Classic Industries and Exports Ltd. 109.67 109.67
Sale of assets:
Apollo Tyres (Hungary) Kft. -

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C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Purchase of supplements for employees:
Nutriburst India Pvt. Ltd. 56.94 56.94
Commission on sales paid
Apollo Tyres (Thailand) Limited 75.87 75.87
Apollo Tyres (Middle East) FZE 1.12 1.12
76.99 - - - 76.99
Refund of security deposits given:
Regent Properties 3.30 3.30
Guarantee commission received
Apollo Tyres Co-Operatief U.A 2.96 2.96
Managerial remuneration:
Mr. Onkar Kanwar 270.59 270.59
Mr. Neeraj Kanwar 284.12 284.12
Mr. Satish Sharma 99.70 99.70
- - - 654.41 654.40
Sitting fees:
Non-executive directors - - - 4.29 4.29
Commission:
Non-executive directors - - - 50.00 50.00

Amount outstanding as at March 31, 2023

H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Trade payable:
Classic Industries and Exports Limited 436.23 436.23
Artemis Medicare Services Ltd. 2.40 2.40
Shardul Amarchand Mangaldas & Co. 0.90 0.90
Apollo Tyres AG 25.01 25.01
Apollo Tyres (NL) B.V. 99.26 99.26
Apollo Tyres (Middle East) FZE 12.10 12.10
Apollo Tyres (UK) Holdings Ltd. 95.19 95.19
Apollo Tyres Global R&D B.V. 112.37 112.37
Apollo Tyres (Thailand) Limited 37.46 37.46
Apollo Tyres Africa (Pty) Ltd 0.89 0.89
Apollo Tires (US) INC. 5.60 5.60
Apollo Tyres Holdings (Singapore) Pte Ltd 3,556.43 3,556.43
Saturn F1 Pvt Ltd 27.13 27.13
Apollo Tyres Centre of Excellence Limited 49.63 49.63
4,021.07 439.53 - - 4,460.60
Other current liabilities (financial):
Apollo International FZC 0.37 0.37
Classic Industries and Exports Limited 128.77 128.77

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C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Apollo Tyres (NL) B.V. 13.35 13.35
Apollo Tyres (Middle East) FZE 32.47 32.47
Apollo Tyres (Thailand) Limited 0.45 0.45
Apollo Tyres (Hungary) Kft. 3.75 3.75
Apollo Tires (US) INC. 4.75 4.75
54.77 129.14 - - 183.91

Amount outstanding as at March 31, 2023

H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Other non current financial assets*
PTL Enterprises Ltd. 600.00 600.00
Sunlife Tradelinks 5.86 5.86
Regent Properties 2.10 2.10
- 607.96 - - 607.96
Other non current assets
Classic Industries and Exports Ltd. -
Trade receivable:
Apollo International Limited 18.34 18.34
Apollo Tyres (NL) B.V. 362.11 362.11
Apollo Tyres Global R&D B.V. - -
Apollo Tyres (Thailand) Limited 185.43 185.43
Apollo Tyres Africa (Pty) Ltd 439.14 439.14
Apollo Tyres (Hungary) Kft. 15.63 15.63
Apollo Tires (US) INC. 470.33 470.33
1,472.64 18.34 - - 1,490.98
Other current assets
PTL Enterprises Ltd. 50.52 50.52
Classic Industries and Exports Limited 201.99 201.99
Apollo Tyres (NL) B.V. 300.0500 300.05
Apollo Tyres (Middle East) FZE 19.0700 19.07
Apollo Tyres (UK) Holdings Ltd. 4.24 4.24
Apollo Tyres Global R&D B.V. 6.44 6.44
Apollo Tyres (Thailand) Limited 6.25 6.25
Apollo Tyres Africa (Pty) Ltd 120.93 120.93
Apollo Tyres (Hungary) Kft. 42.68 42.68
Apollo Tires (US) INC. 25.12 25.12
Apollo Tyres Holdings (Singapore) Pte Ltd 11.35 11.35
Saturn F1 Pvt Ltd 0.48 0.48
KT Telematic Solutions Private Limited 0.01 0.01
Apollo Tyres Centre of Excellence Limited 1.72 1.72
538.33 252.51 0.01 - 790.85

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Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
Transactions and balances with Related Parties:
FY 2021-22
H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Description of transactions:
Sales: Finished goods
Apollo Tyres (NL) B.V. 4,427.85 - - - 4,427.85
Apollo Tyres Middle East Fze. 4,969.89 - - - 4,969.89
Apollo Tyres Thailand Ltd. 2,183.70 - - - 2,183.70
Apollo Tyres Africa (Pty) Ltd 1,024.71 - - - 1,024.71
Apollo Tyres (Malaysia) Sdn Bhd 5.74 - - - 5.74
Apollo Tyres (Hungary) Kft 285.28 - - - 285.28
Apollo International FZC - 380.88 - - 380.88
Apollo Tyres Global R&D B.V 1.86 - - - 1.86
Apollo International Limited - 70.18 - - 70.18
Apollo Tires (US) INC. 1,453.90 - - - 1,453.90
14,352.93 451.06 - - 14,803.99
Sales: Raw materials
Classic Industries and Exports Ltd. - 735.71 - - 735.71
Royalty income:
Apollo Tyres Middle East Fze. 22.32 - - - 22.32
Apollo Tyres Thailand Ltd. 17.00 - - - 17.00
Apollo Tyres Africa (Pty) Ltd 44.21 - - - 44.21
Apollo Tyres (Malaysia) Sdn Bhd 0.13 - - - 0.13
83.66 - - - 83.66
Cross charge of management and other
expenses received :
Apollo Tyres Middle East Fze. 1.57 - - - 1.57
Apollo Tyres Global R & D B.V. 1.76 - - - 1.76
Apollo Tyres Thailand Ltd. 1.69 - - - 1.69
PTL Enterprises Ltd. - 0.85 - - 0.85
Classic Industries and Exports Ltd. - 1.69 - - 1.69
Apollo Tyres Africa (Pty) Ltd 1.73 - - - 1.73
Artemis Medicare Services Ltd. - 0.71 - - 0.71
Apollo Tyres (Hungary) Kft 83.37 - - - 83.37
Apollo Tyres Holdings (Singapore) Pte Ltd. 65.04 - - - 65.04
Apollo Tyres (Malaysia) Sdn Bhd 0.58 - - - 0.58
Apollo Tyres (US) INC. 98.72 - - - 98.72
Apollo Tyres (UK) Holdings Ltd. 0.29 - - - 0.29
Apollo Tyres (NL) B.V. 94.22 - - - 94.22
348.97 3.25 - - 352.22

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C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Cross charges for business support
services paid:
Apollo Tyres Centre Of Excellence Limited 9.96 - - - 9.96
Cross charges for facility mgt. & support
services received:
Apollo Tyres Centre Of Excellence Limited 1.41 - - - 1.41

H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Rent received:
PTL Enterprises Ltd. - 0.39 - - 0.39
Classic Industries and Exports Ltd. - 1.06 - - 1.06
- 1.45 - - 1.45
Reimbursement of expenses received:
Apollo Tyres Middle East Fze. 3.74 - - - 3.74
Apollo Tyres Global R & D B.V. 15.68 - - - 15.68
Apollo Tyres Thailand Ltd. 4.44 - - - 4.44
Classic Industries and Exports Ltd. - 11.85 - - 11.85
Apollo Tyres Africa (Pty) Ltd 2.47 - - - 2.47
Apollo Tyres (Hungary) Kft 78.87 - - - 78.87
Apollo Tyres Holdings (Singapore) Pte Ltd. 96.48 - - - 96.48
Apollo Tyres AG, Switzerland 100.02 - - - 100.02
Apollo Tyres (Malaysia) Sdn Bhd 2.19 - - - 2.19
Reifencom GmbH 0.06 - - - 0.06
Apollo Tyres (NL) B.V. 161.66 - - - 161.66
Apollo Tyres (UK) Holdings Ltd. 15.35 - - - 15.35
Apollo Tires (US) INC. 1.37 - - - 1.37
482.33 11.85 - - 494.18
Freight and insurance recovered:
Apollo Tyres Middle East Fze. 482.52 - - - 482.52
Apollo Tyres Thailand Ltd. 62.96 - - - 62.96
Apollo Tyres Africa (Pty) Ltd 170.26 - - - 170.26
Apollo Tyres (NL) B.V. 1,159.58 - - - 1,159.58
Apollo Tyres Global R&D B.V 4.76 - - - 4.76
Apollo Tyres (Hungary) Kft 49.76 - - - 49.76
Apollo Tyres (Malaysia) Sdn Bhd 0.11 - - - 0.11
Apollo Tires (US) INC. 671.29 - - - 671.29
Apollo International FZC - 0.02 - - 0.02
2,601.24 0.02 - - 2,601.26

290
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Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Royalty expense:
Apollo Tyres AG, Switzerland 110.68 - - - 110.68
Purchase of raw material
Apollo Tyres Holdings (Singapore) Pte Ltd. 34,589.81 - - - 34,589.81
Purchase of stock in trade:
Classic Industries and Exports Ltd. - 3,836.80 - - 3,836.80
Apollo Tyres (NL) B.V. 196.99 - - - 196.99
196.99 3,836.80 - - 4,033.79
Purchase of asset:
Classic Industries and Exports Ltd. - 757.19 - - 757.19
Apollo Tyres (NL) B.V. 21.25 - - - 21.25
Apollo Tyres (Hungary) Kft 40.21 - - - 40.21
61.46 757.19 - - 818.65
Legal and professional charges paid:
Shardul Amarchand Mangaldas & Co - 3.21 - - 3.21
Reimbursement of expenses paid:
PTL Enterprises Ltd. - 669.66 - - 669.66
Classic Industries and Exports Ltd. - 19.44 - - 19.44
Apollo Tyres (NL) B.V. 171.44 - - - 171.44
Apollo Tyres Thailand Ltd. 17.89 - - - 17.89
Apollo Tyres Middle East Fze. 26.71 - - - 26.71
Apollo Tyres Global R & D B.V. 74.56 - - - 74.56
Apollo Tyres Holdings (Singapore) Pte Ltd. 5.13 - - - 5.13
Apollo Tyres (Malaysia) Sdn Bhd 0.24 - - - 0.24
Apollo Tyres (Hungary) Kft 0.38 - - - 0.38
Apollo Tyres (UK) Holdings Ltd. 1.87 - - - 1.87
Apollo Tyres Africa (Pty) Ltd 0.51 - - - 0.51
Apollo Tires (US) INC. 10.67 - - - 10.67
309.40 689.10 - - 998.50
Payment for services received:
Artemis Medicare Services Ltd. - 94.95 - - 94.95
KT Telematic Solutions Private Limited - - 0.88 - 0.88
Classic Industries and Exports Ltd. - 13.70 - - 13.70
- 108.65 0.88 - 109.53
Cross charge of R & D expenses paid:
Apollo Tyres Global R & D B.V. 575.95 - - - 575.95

Cross charge of other expenses paid:

Apollo Tyres (UK) Holdings Ltd. 916.11 - - - 916.11
Apollo Tyres Holdings (Singapore) Pte Ltd. 261.35 - - - 261.35
1,177.46 - - - 1,177.46

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C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Lease rent paid:
PTL Enterprises Ltd. - 600.00 - - 600.00
Rent paid:
Sunlife Tradelinks (P) Ltd. - 31.82 - - 31.82
Regent Properties - 23.76 - - 23.76
Classic Industries and Exports Ltd. - 0.12 - - 0.12
- 55.70 - - 55.70
Mixing charges paid:
Classic Industries and Exports Ltd. - 178.07 - - 178.07
Sale of assets:
Apollo Tyres (Hungary) Kft. 1.75 - - - 1.75
Purchase of supplements for employees:
Nutriburst India Pvt. Ltd. - 58.31 - - 58.31
Commission on sales paid
Apollo Tyres Thailand Ltd. 74.83 - - - 74.83
Guarantee commission received
Apollo Tyres Co-Operatief U.A 8.28 - - - 8.28
Managerial remuneration:
Mr. Onkar Kanwar - - - 140.14 140.14
Mr. Neeraj Kanwar - - - 122.62 122.62
Mr. Satish Sharma - - - 89.58 89.58
- - - 352.34 352.34
Sitting fees:
Non-executive directors - - - 4.13 4.13
Commission:
Non-executive directors - - - 38.00 38.00

Amount outstanding as at March 31, 2022

H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Trade payable:
Apollo Tyres AG, Switzerland 29.83 - - - 29.83
Apollo Tyres (NL) B.V. 69.15 - - - 69.15
Apollo Tyres (UK) Holdings Ltd. 244.61 - - - 244.61
Apollo Tyres Global R&D B.V. 191.58 - - - 191.58
Apollo Tyres Middle East Fze. 19.75 - - - 19.75
Classic Industries and Exports Ltd. - 511.16 - - 511.16
Apollo Tyres (Thailand) Ltd. 245.72 - - - 245.72
Apollo Tyres Africa (Pty) Ltd 3.89 - - - 3.89
Artemis Medicare Services Ltd. - 5.96 - - 5.96
Shardul Amarchand Mangaldas & Co. - 0.49 - - 0.49

292
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Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
H Million
Entities
Key
in which
Particulars Subsidiaries Associate Management Total
Directors are
Personnel
interested
Apollo Tyres Centre of Excellence Limited 10.67 - - - 10.67
Apollo Tyres Holdings (Singapore) Pte Ltd. 5,924.04 - - - 5,924.04
6,739.24 517.61 - - 7,256.85
Other current liabilities (financial):
Apollo Tyres (NL) B.V. 1.37 - - - 1.37
Classic Industries and Exports Ltd. - 123.26 - - 123.26
Apollo International FZC - 18.11 - - 18.11
KT Telematic Solutions Private Limited - - 0.25 - 0.25
Apollo Tyres Global R&D B.V. 0.39 - - - 0.39
Apollo Tires (US) INC. 0.45 - - - 0.45
Apollo Tyres (Hungary) Kft 3.95 - - - 3.95
6.16 141.37 0.25 - 147.78
Other non current financial assets*
PTL Enterprises Ltd. - 600.00 - - 600.00
Sunlife Tradelinks - 5.86 - - 5.86
Regent Properties - 5.40 - - 5.40
- 611.26 - - 611.26
Other non current assets
Classic Industries and Exports Ltd. - 194.27 - - 194.27
Trade receivable:
Apollo Tyres (NL) B.V. 1,432.06 - - - 1,432.06
Apollo Tyres Africa (Pty) Ltd 330.77 - - - 330.77
Apollo International Limited - 59.45 - - 59.45
Apollo Tyres Middle East Fze. 336.70 - - - 336.70
Apollo Tyres (Hungary) Kft 101.40 - - - 101.40
Apollo Tyres (Thailand) Ltd. 250.48 - - - 250.48
Apollo Tyres Global R & D B.V. 0.69 - - - 0.69
Apollo Tires (US) INC. 1,063.93 - - - 1,063.93
3,516.03 59.45 - - 3,575.48
Other current assets
Apollo Tyres Africa (Pty) Ltd 117.32 - - - 117.32
Apollo Tyres (NL) B.V. 63.13 - - - 63.13
Apollo Tyres Thailand Ltd. 59.00 - - - 59.00
PTL Enterprises Ltd. - 51.74 - - 51.74
Classic Industries and Exports Ltd. - 263.31 - - 263.31
Apollo Tyres (Hungary) Kft 27.36 - - - 27.36
Apollo Tyres Middle East Fze. 28.20 - - - 28.20
Apollo Tyres Co-Operatief U.A 10.53 - - - 10.53
Apollo Tyres Global R&D B.V 9.03 - - - 9.03
Apollo Tyres Holdings (Singapore) Pte Ltd. 14.26 - - - 14.26
Apollo Tires (US) INC. 16.70 - - - 16.70
Apollo Tyres (UK) Holdings Ltd. 8.39 - - - 8.39
Apollo Tyres Centre of Excellence Limited 1.67 - - - 1.67
355.59 315.05 - - 670.64

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C. Notes
Forming Part of the Financial Statements

17 Disclosure of related party transactions in accordance with Ind AS 24 - Related Party Disclosures
(Contd..)
Certain KMPs also participate in post employment benefits plans provided by the Company. The amount in respect of these
towards the KMPs can not be segregated as these are based on actuarial valuation for all employees of the Company.

*This represents undiscounted value.

18 Disclosure required by Regulation 34 of SEBI (Listing Obligations & Disclosure Requirements)

Regulations, 2015 regarding the related parties
Amount of loans / advances in the nature of loans outstanding from Subsidiaries and Companies in
which Directors are interested
H Million
Investments
Maximum
Outstanding outstanding
amount
Particulars as at the end of and maximum
outstanding
the year balance during
during the year
the year
Subsidiaries
Year ended March 31, 2023
Apollo Tyres Cooperatief U.A - - 23,973.19
Apollo Tyres (Green Field) B.V. - - 2.74
Apollo Tyres Centre of Excellence Limited - - 115.13
Year ended March 31, 2022
Apollo Tyres Cooperatief U.A - - 23,973.19
Apollo Tyres (Green Field) B.V. - - 2.74
Apollo Tyres Centre of Excellence Limited - - 50.00
Associates
Year ended March 31, 2023
KT Telematic Solutions Private Limited - - 45.01
Year ended March 31, 2022
KT Telematic Solutions Private Limited - - 45.01

19 Segment reporting
The Company has opted to provide segment information in its consolidated Ind AS financial statements in accordance with
para 4 of Ind AS 108 - Operating Segments.

20 Events after the balance sheet date

The Board of Directors have recommended a final dividend of J 4.00 per share amounting to J 2,540.40 Million and a Special
Dividend of J 0.50 per share amounting to J 317.55 Million on occasion of 50th Annual General Meeting (AGM) of the
Company, aggregating to J 4.50 (H 3.25) per share amounting to J 2,857.95 Million (H 2,064.08 Million) on equity shares of
Re. 1/- each for the year, subject to approval from Shareholders.

294
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Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

21 Information on details of loans, guarantees and investments under section 186 of the Act read
with Companies (Meetings of Board and its Powers) Rules, 2014
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
186 of the Act read with rules issued thereunder.
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Apollo Tyres Cooperatief U.A 1,471.39 1,849.54
Total 1,471.39 1,849.54

22 Reconciliation of liabilities from financing activities

H Million
Non cash changes
As at As at
Foreign
Particulars April Cash flows Interest New March
exchange Others
01, 2022 expense leases 31, 2023
movement*
Non-current borrowings (including
41,858.71 (1,555.20) 403.76 - - 38.30 40,745.57
current maturities)
Current borrowings 2,004.18 (2,000.00) - - - 5.58 9.76
Lease liability 5,516.35 (1,363.31) - 414.32 507.32 (137.33) 4,937.35

H Million
Non cash changes
As at As at
Foreign
Particulars April Cash flows Interest New March
exchange Others
01, 2021 expense leases 31, 2022
movement*
Non-current borrowings
42,460.45 (599.08) (14.39) - - 11.73 41,858.71
(including current maturities)
Current borrowings 1,004.85 1,000.00 - - - (0.67) 2,004.18
Lease liability 5,351.07 (1,340.64) - 455.53 1,120.02 (69.63) 5,516.35
* Foreign exchange movement is hedged by derivative instrument.

23 Ageing of Trade Payables

H Million
As at March 31, 2023
Outstanding for following periods from due date of payment
Particulars
Less than 1 More than 3
Unbilled Not due 1-2 years 2-3 years Total
year years
MSME - 306.28 - - - - 306.28
Others 3,399.31 16,716.64 2,764.94 89.93 853.92 160.06 23,984.80
Disputed dues – MSME - - - - - - -
Disputed dues - Others - - - - - - -
Total 3,399.31 17,022.92 2,764.94 89.93 853.92 160.06 24,291.08

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C. Notes
Forming Part of the Financial Statements

23 Ageing of Trade Payables (Contd..)

H Million
As at March 31, 2022
Outstanding for following periods from due date of payment
Particulars
Less than 1 More than 3
Unbilled Not due 1-2 years 2-3 years Total
year years
MSME - 337.63 - - - 337.63
Others 3,331.26 19,214.08 3,946.18 853.92 - 160.06 27,505.50
Disputed dues – MSME - - - - - - -
Disputed dues - Others - - - - - - -
Total 3,331.26 19,551.71 3,946.18 853.92 - 160.06 27,843.13

Include amount of H 4,176.61 million (H 3,673.63 million) which are interest bearing in nature and payable to banks at the
behest of certain vendors.

24 Ageing of Trade Receivables

H Million
As at March 31, 2023
Outstanding for following periods from due date of payment
Particulars
Less than 1 More than 3
Unbilled Not due 1-2 years 2-3 years Total
year years
Undisputed Trade receivables –
15,257.52 626.42 - - - - 15,883.94
considered good
Undisputed Trade Receivables –
which have significant - - - - - 24.40 24.40
increase in credit risk
Undisputed Trade Receivables –
- - - - - - -
credit impaired
Disputed Trade Receivables –
- - - - - - -
considered good
Disputed Trade Receivables –
which have significant - - - - - - -
increase in credit risk
Disputed Trade Receivables –
- - - - - - -
credit impaired
Total 15,257.52 626.42 - - - 24.40 15,908.34

H Million
As at March 31, 2022
Outstanding for following periods from due date of payment
Particulars
Less than 1 More than 3
Unbilled Not due 1-2 years 2-3 years Total
year years
Undisputed Trade receivables –
12,682.79 2,740.22 - - - - 15,423.01
considered good
Undisputed Trade Receivables –
which have significant - - - - - 24.40 24.40
increase in credit risk
Undisputed Trade Receivables –
- - - - - - -
credit impaired
Disputed Trade Receivables –
- - - - - - -
considered good

296
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

24 Ageing of Trade Receivables (Contd..)

H Million
As at March 31, 2022
Outstanding for following periods from due date of payment
Particulars
Less than 1 More than 3
Unbilled Not due 1-2 years 2-3 years Total
year years
Disputed Trade Receivables –
which have significant - - - - - - -
increase in credit risk
Disputed Trade Receivables –
- - - - - - -
credit impaired
Total 12,682.79 2,740.22 - - - 24.40 15,447.41

Trade receivables are non-interest bearing and are generally on terms of 0 to 180 days.

The amount received from customers under the recurring advance scheme (RAS) have been reclassified from trade receivable
to other current liabilities (Note B19) and provision for schemes & discounts is reclassified from other current liabilities (Note
B19) to trade receivables.

25 Capital Work in Progress (CWIP) and intangible assets under development

a) Ageing schedule
H Million
As at March 31, 2023
Amount for a period of
Particulars
Less than More than 3
1-2 years 2-3 years Total
1 year years
Capital work in Progress 955.01 92.82 44.96 66.43 1,159.22
Intangible assets under development 168.10 17.63 - - 185.73
Total 1,123.11 110.45 44.96 66.43 1,344.95

H Million
As at March 31, 2022
Amount for a period of
Particulars
Less than More than 3
1-2 years 2-3 years Total
1 year years
Capital work in Progress 3,919.90 650.17 247.71 600.74 5,418.52
Intangible assets under development 31.45 13.86 14.41 2.11 61.83
Total 3,951.35 664.02 262.13 602.86 5,480.36

b) Changes in the carrying value of capital work in progress and intangible assets under development:
H Million
Intangible
Capital work-
Particulars assets under Total
in-progress
development
Carrying value
As at April 01, 2021 10,256.69 42.86 10,299.55
Additions 18,234.39 218.22 18,452.61
Capitalised 23,072.55 199.25 23,271.80
As at March 31, 2022 5,418.53 61.83 5,480.36

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C. Notes
Forming Part of the Financial Statements

25 Capital Work in Progress (CWIP) and intangible assets under development (Contd..)
b) Changes in the carrying value of capital work in progress and intangible assets under development:
H Million
Intangible
Capital work-
Particulars assets under Total
in-progress
development
Additions 4,209.17 304.82 4,513.99
Capitalised 8,468.48 180.92 8,649.40
As at March 31, 2023 1,159.22 185.73 1,344.95

c) There are no projects which are temporarily suspended

d) There is no project in CWIP, whose completion is overdue or has exceeded its cost compared to its original plan.

26 Analytical Ratios
H Million
March 31, 2023 March 31, 2022 Variance Reasons
Current ratio (in times)
0.96 0.91 5.17%
(Current assets / Current liabilities)
Debt equity ratio (in times)
0.41 0.46 (10.67%)
[Total debt / equity]
Debt service coverage ratio (in times) #
[(Profit after tax + interest expense +
depreciation & amortisation expense +
exceptional items + loss/(gain) on sale of fixed 1.65 1.37 20.24%
assets) / (Gross interest + lease payment
+ repayment of non-current borrowings
excluding pre-payments)]
Return on equity (ROE) Higher profitability led
(Net Profits after taxes – Preference Dividend 5.96% 2.75% 116.81% to increase in return on
(if any)/ Average Shareholder’s Equity) equity.
Inventory turnover (in times) #
[Revenue from operations / Average 7.30 6.45 13.11%
inventory]
"Trade receivables turnover (in times) #
[Revenue from operations / Average trade 11.05 10.78 2.54%
receivables]"
Trade payables turnover (in times) #
4.42 4.41 0.21%
(Net Purchases/ Average Trade Payables)
Higher working capital
Net capital turnover ratio
26.56 130.02 (79.57%) led to reduction in
(Revenue from operation/ Working capital)
capital turnover ratio
Lower expenses led to
Net profit margin (in %)
3.35% 1.78% 87.71% increase in net profit
[Profit after tax / Revenue from operations]
margin.
Return on capital employed (ROCE) Higher profitability led
(Earning before interest and taxes/ Capital 8.66% 5.02% 72.41% to increase in return on
Employed) capital employed
Return on investment
((Interest on bankl deposits + gain on mutual 2.15% 2.68% (19.72%)
funds)/ average current investment)

298
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

C. Notes
Forming Part of the Financial Statements

27 The Company's revenue disaggregated by geographical markets is as follows:

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
India 142,976.62 120,413.18
Rest of the world 25,922.47 22,654.69
Total 168,899.09 143,067.87

Reconciling the amount of revenue recognised in statement of profit and loss with the contracted
price
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Revenue as per contracted price (as invoiced) 175,738.21 148,008.91
Reduction towards variable consideration components (6,839.12) (4,941.04)
Revenue from contract with customers 168,899.09 143,067.87

Contract balances
H Million
For the year For the year
Particulars ended ended
March 31, 2023 March 31, 2022
Trade receivables 15,883.94 15,423.01
Advance from customers 10,694.51 10,618.24

The Company receives payment from customers based on a billing schedule, as established in the contracts with customers.
Trade receivables are recognised when the right to consideration becomes unconditional. Contract liability relates to
payments received in advance of performance under the contract. Contract liabilities are recognised as revenue as (or when)
the Company performs under the contract.

28 The Company had carried out an employee re-organisation exercise for its employees. The amount paid to the employees
who opted for this scheme aggregated to J Nil million (H 12.68 million) for the year ended March 31, 2023, has been disclosed
as an exceptional item.

29 Earnings per share (EPS) – the numerator and denominator used to calculate basic and diluted
earnings per share
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2023
Basic and diluted earnings per share
Profit attributable to the equity shareholders used as numerator (H Million) -
5,787.38 2,610.64
(A)
The weighted average number of equity shares outstanding during the year
635,100,946 635,100,946
used as denominator - (B)
Basic and diluted earnings per share (J) – (A) / (B) (Face value of Re 1 each) 9.11 4.11

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 Apollo Tyres Ltd
Annual Report 2022-23

C. Notes
Forming Part of the Financial Statements

30 During the previous year, the Company had invested J 93.30 million by purchasing 11,66,250 equity shares and in
current year further invested J 2.70 million by purchasing 33,750 equity shares of CSE Deccan Solar Private Limited,
totalling an equity stake of 27.27% as on March 31, 2023, to get a guaranteed supply of 40 million units of electricity per
annum for its Chennai Plant. This amount is refundable after the tenure. Consequent to this investment, CSE Deccan
Solar Private Limited has been considered an Associate Company as per the requirement of Companies Act, 2013.
However, as per the provisions of IND AS 28 - Investment in Associates and Joint Ventures, the said investment made by the
Company is in the form of a deposit which will be returned to the Company at the end of the tenure with no residual interest.
Therefore, this investment has been accounted for as per the provisions of IND AS 109 Financial Instruments.

31 Previous year's figures has been regrouped and/ or reclassed wherever necessary to confirm to the current year's groupings
and classifications.

32 Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
(ii) The Company do not have any transactions with companies struck off.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vii) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961.
(viii) The company has not been declared a wilful defaulter by any bank or financial institution or any of the lenders.
(ix) The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.

See accompanying notes forming part of the financial statements

As per our report of even date

For S.R. Batliboi & CO. LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No. 301003E/E300005 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman Vice Chairman & Director
Managing Director
per Pankaj Chadha DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 091813 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Place: Gurugram Place: Amsterdam Membership No - FCS 6690
Date: May 9, 2023 Date: May 9, 2023

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Independent Auditor’s Report

To the Members of Apollo Tyres Limited

Report on the audit of the consolidated financial of the Consolidated Financial Statements’ section of our
statements Report. We are independent of the Group, associate, joint
venture in accordance with the ‘Code of Ethics’ issued by the
Opinion Institute of Chartered Accountants of India together with
the ethical requirements that are relevant to our audit of
We have audited the accompanying consolidated financial
statements of Apollo Tyres Limited (hereinafter referred to the financial statements under the provisions of the Act and
as “the Holding Company”), its subsidiaries (the Holding the Rules thereunder, and we have fulfilled our other ethical
Company and its subsidiaries together referred to as responsibilities in accordance with these requirements and
“the Group”) its associate and joint venture comprising the Code of Ethics. We believe that the audit evidence we
of the consolidated Balance sheet as at March 31 2023, have obtained is sufficient and appropriate to provide a
the consolidated Statement of Profit and Loss, including basis for our audit opinion on the consolidated financial
other comprehensive income, the consolidated Cash Flow statements.
Statement and the consolidated Statement of Changes
in Equity for the year then ended, and notes to the Key Audit Matters
consolidated financial statements, including a summary
of significant accounting policies and other explanatory Key audit matters are those matters that, in our professional
information (hereinafter referred to as “the consolidated judgment, were of most significance in our audit of the
financial statements”). consolidated financial statements for the financial year
ended March 31, 2023. These matters were addressed in the
In our opinion and to the best of our information and according
context of our audit of the consolidated financial statements
to the explanations given to us and based on the consideration
as a whole, and in forming our opinion thereon, and we do
of reports of other auditors on separate financial statements
not provide a separate opinion on these matters. For each
and on the other financial information of the subsidiaries,
matter below, our description of how our audit addressed
associate and joint venture, the aforesaid consolidated
financial statements give the information required by the the matter is provided in that context.
Companies Act, 2013, as amended (“the Act”) in the manner
We have determined the matters described below to be
so required and give a true and fair view in conformity with
the key audit matters to be communicated in our report. We
the accounting principles generally accepted in India, of the
have fulfilled the responsibilities described in the Auditor’s
consolidated state of affairs of the Group, its associate and
joint venture as at March 31, 2023, their consolidated profit responsibilities for the audit of the consolidated financial
including other comprehensive income, their consolidated cash statements section of our report, including in relation to these
flows and the consolidated statement of changes in equity for matters. Accordingly, our audit included the performance
the year ended on that date. of procedures designed to respond to our assessment of the
risks of material misstatement of the consolidated financial
Basis for Opinion statements. The results of audit procedures performed by us
We conducted our audit of the consolidated financial and by other auditors of components not audited by us, as
statements in accordance with the Standards on Auditing reported by them in their audit reports furnished to us by the
(SAs), as specified under section 143(10) of the Act. management, including those procedures performed to address
Our responsibilities under those Standards are further the matters below, provide the basis for our audit opinion on
described in the ‘Auditor’s Responsibilities for the Audit the accompanying consolidated financial statements.

Key audit matters How our audit addressed the key audit matter

Provision for sales related obligations (as described in Note B8, B16 and B22 of the consolidated financial statements)
The Group provides various incentives, discounts and The procedures performed by us in respect of the entity audited
warranty to its customers. These sales related obligations by us and by other component auditors in respect of entities
require accruals based on the commitments, established where we are not the auditors wherever required, included the
trade practices and historical trends and other assumptions following:
which are inherently judgmental including those relating
to outflow of resources. The accruals amounts to INR 8,032 • Evaluated the design and tested the operating
Million as at March 31, 2023. effectiveness of key controls in respect of accounting of
these obligations;

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Key audit matters How our audit addressed the key audit matter
Considering the materiality of above matter to the • Obtained from the management a list of documents
financial statements, complexities and significant supporting the commitments made to the customers;
judgement involved in making the above estimate,
we have identified this as a key audit matter for the • Tested on a sample basis expenses for obligations recorded
current year audit. during the year;

• Evaluated reasonableness of year end accrual through

testing of the underlying data and assumptions involved on
a sample basis and assessed the relevance and reliability of
underlying data.

• Assessed the adequacy of disclosures made in the

consolidated financial statements;
Tax litigations and claims (as described in Note C12 of the consolidated financial statements)
The Group has many outstanding tax related The procedures performed by us in respect of the entity audited
litigations and claims with tax authorities. by us and by other component auditors in respect of entities
where we are not the auditors, included the following:
Evaluation of the outcome of these matters requires
significant judgement by the management given • 
Evaluated the design and tested the operating
the complexities involved. including estimations in effectiveness of controls in respect of identification and
assessing the likelihood that a pending claim will evaluation of taxation related demands, proceedings and
succeed, or a liability will arise, and the quantification related provisions;
of the ranges of potential financial settlement.
• Obtained a list of taxation related litigations and claims
Accordingly, we have identified this as a key audit from the management and identified material litigations/
matter for the current year audit. claims;

• In relation to such identified material litigations/ claims,

involved tax specialists to perform an assessment of the
conclusions reached by management;

• Obtained independent confirmations from the Company’s

external lawyers/advisors with respect to the material
litigations/ claims and demands, wherever involved;

• 
Evaluated the reasonableness of management’s
assumptions, estimates and judgments by testing the
underlying documents and assessments shared by the
management for material matters;

• 
Assessed the adequacy of disclosures made in the
consolidated financial statements.
Recoverability of goodwill, trademarks and other intangibles having indefinite useful lives (as described in Note C3 of
the consolidated financial statements)
The Group carries goodwill amounting to INR 2,288 Our audit procedures included the following:
million and other intangibles having indefinite useful
lives amounting to INR 1,560 million pertaining to • Obtained an understanding from the management with
acquisition of Reifencom GmbH, (‘Reifencom’)in its respect to process and controls followed by the Group
consolidated balance sheet as at March 31, 2023. to perform annual impairment test of goodwill and
intangibles having indefinite useful lives;
The impairment assessment of the cash generating
unit (CGU) to which these intangibles assets have • 
Obtained the impairment analysis model from the
been allocated is complex and highly judgmental management and assessed their conclusions;
as it requires significant estimates such as growth
• Verified the operating margins, discount rates and revenue
in revenue and operating margin, discount rate and
growth applied in the model, with the involvement of
terminal value for determining the Value-In-Use at the
valuation specialists and performed sensitivity analysis;
CGU level.
• Obtained and evaluated reasonableness of the future
Considering the significant level of judgement we have
growth considering historical trends and industry
identified this as a key audit matter for the current
benchmark;
year audit.
• 
Assessed the adequacy of disclosures made in the
consolidated financial statements.

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Other Information In preparing the consolidated financial statements, the

respective Board of Directors of the companies included
The Holding Company’s Board of Directors is responsible in the Group and of its associate and joint venture are
for the other information. The other information comprises responsible for assessing the ability of their respective
the information included in the Report on Corporate companies to continue as a going concern, disclosing, as
Governance, Business Responsibility and Sustainability applicable, matters related to going concern and using
Report, Management Discussion and Analysis and Director’s the going concern basis of accounting unless management
Report, but does not include the consolidated financial either intends to liquidate the Group or to cease operations,
statements and our auditor’s report thereon. or has no realistic alternative but to do so.
Our opinion on the consolidated financial statements does Those respective Board of Directors of the companies
not cover the other information and we do not express any included in the Group and of its associate and joint venture
form of assurance conclusion thereon. are also responsible for overseeing the financial reporting
In connection with our audit of the consolidated financial process of the Group and of its associate and joint venture.
statements, our responsibility is to read the other
information identified above and, in doing so, consider Auditor’s Responsibilities for the Audit of the
whether such other information is materially inconsistent Consolidated Financial Statements
with the consolidated financial statements or our knowledge
obtained in the audit or otherwise appears to be materially Our objectives are to obtain reasonable assurance about
misstated. If, based on the work we have performed, we whether the consolidated financial statements as a whole
conclude that there is a material misstatement of this other are free from material misstatement, whether due to fraud
information, we are required to report that fact. We have or error, and to issue an auditor’s report that includes our
nothing to report in this regard. opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
Responsibilities of Management for the
exists. Misstatements can arise from fraud or error and are
Consolidated Financial Statements
considered material if, individually or in the aggregate, they
The Holding Company’s Board of Directors is responsible could reasonably be expected to influence the economic
for the preparation and presentation of these consolidated decisions of users taken on the basis of these consolidated
financial statements in terms of the requirements of the Act financial statements.
that give a true and fair view of the consolidated financial
As part of an audit in accordance with SAs, we exercise
position, consolidated financial performance including
professional judgment and maintain professional skepticism
other comprehensive income, consolidated cash flows and
throughout the audit. We also:
consolidated statement of changes in equity of the Group
including its associate and joint venture in accordance • Identify and assess the risks of material misstatement
with the accounting principles generally accepted in of the consolidated financial statements, whether due
India, including the Indian Accounting Standards (Ind to fraud or error, design and perform audit procedures
AS) specified under section 133 of the Act read with the responsive to those risks, and obtain audit evidence
Companies (Indian Accounting Standards) Rules, 2015,
that is sufficient and appropriate to provide a basis
as amended. The respective Board of Directors of the
for our opinion. The risk of not detecting a material
companies included in the Group and of its associate and
misstatement resulting from fraud is higher than for
joint venture are responsible for maintenance of adequate
one resulting from error, as fraud may involve collusion,
accounting records in accordance with the provisions of
forgery, intentional omissions, misrepresentations, or
the Act for safeguarding of the assets of their respective
the override of internal control.
companies and for preventing and detecting frauds and
other irregularities; selection and application of appropriate • Obtain an understanding of internal control relevant to
accounting policies; making judgments and estimates that the audit in order to design audit procedures that are
are reasonable and prudent; and the design, implementation appropriate in the circumstances. Under section 143(3)
and maintenance of adequate internal financial controls, (i) of the Act, we are also responsible for expressing our
that were operating effectively for ensuring the accuracy opinion on whether the Holding Company has adequate
and completeness of the accounting records, relevant to the internal financial controls with reference to financial
preparation and presentation of the consolidated financial statements in place and the operating effectiveness of
statements that give a true and fair view and are free from such controls.
material misstatement, whether due to fraud or error,
which have been used for the purpose of preparation of the • Evaluate the appropriateness of accounting policies
consolidated financial statements by the Directors of the used and the reasonableness of accounting estimates
Holding Company, as aforesaid. and related disclosures made by management.

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• Conclude on the appropriateness of management’s use extremely rare circumstances, we determine that a matter
of the going concern basis of accounting and, based should not be communicated in our report because the
on the audit evidence obtained, whether a material adverse consequences of doing so would reasonably be
uncertainty exists related to events or conditions expected to outweigh the public interest benefits of such
that may cast significant doubt on the ability of the communication.
Group and its associate and joint venture to continue
as a going concern. If we conclude that a material
Other Matter
uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the (a) We did not audit the financial statements and other
consolidated financial statements or, if such disclosures financial information, in respect of 14 subsidiaries,
are inadequate, to modify our opinion. Our conclusions whose financial statements include total assets of INR
are based on the audit evidence obtained up to the 103,730 million as at March 31, 2023, and total revenues
date of our auditor’s report. However, future events or of INR 133,820 million and net cash outflows of INR
conditions may cause the Group and its associate and 2,082 million for the year ended on that date. These
joint venture to cease to continue as a going concern. financial statement and other financial information
have been audited by other auditors, which financial
• Evaluate the overall presentation, structure and content
statements, other financial information and auditor’s
of the consolidated financial statements, including the
reports have been furnished to us by the management.
disclosures, and whether the consolidated financial
The consolidated financial statements also include
statements represent the underlying transactions and
the Group’s share of net profit of INR 5,304 million
events in a manner that achieves fair presentation.
for the year ended March 31, 2023, as considered in
• Obtain sufficient appropriate audit evidence regarding the consolidated financial statements, in respect of 1
the financial information of the entities or business associate, whose financial statements, other financial
activities within the Group and its associate and joint information have been audited by other auditors
venture of which we are the independent auditors and and whose reports have been furnished to us by the
whose financial information we have audited, to express Management. Our opinion on the consolidated financial
an opinion on the consolidated financial statements. statements, in so far as it relates to the amounts and
We are responsible for the direction, supervision and disclosures included in respect of these subsidiaries and
performance of the audit of the financial statements associate, and our report in terms of sub-sections (3)
of such entities included in the consolidated financial of Section 143 of the Act, in so far as it relates to the
statements of which we are the independent auditors. aforesaid subsidiaries, and associate, is based solely on
For the other entities included in the consolidated the reports of such other auditors.
financial statements, which have been audited by other
Certain of these subsidiaries are located outside
auditors, such other auditors remain responsible for the
India whose financial statements and other financial
direction, supervision and performance of the audits
information have been prepared in accordance with
carried out by them. We remain solely responsible for
accounting principles generally accepted in their respective
our audit opinion.
countries and which have been audited by other auditors
We communicate with those charged with governance of under generally accepted auditing standards applicable
the Holding Company and such other entities included in in their respective countries. The Holding Company’s
the consolidated financial statements of which we are the management has converted the financial statements of
independent auditors regarding, among other matters, the such subsidiaries located outside India from accounting
planned scope and timing of the audit and significant audit principles generally accepted in their respective countries
findings, including any significant deficiencies in internal to accounting principles generally accepted in India. We
control that we identify during our audit. have audited these conversion adjustments made by the
Holding Company’s management. Our opinion in so far as
We also provide those charged with governance with a it relates to the balances and affairs of such subsidiaries
statement that we have complied with relevant ethical located outside India is based on the report of other
requirements regarding independence, and to communicate auditors and the conversion adjustments prepared by the
with them all relationships and other matters that may management of the Holding Company and audited by us.
reasonably be thought to bear on our independence, and
where applicable, related safeguards. (b) The consolidated financial statements of the Company
for the year ended March 31, 2022, included in these
From the matters communicated with those charged with consolidated financial statements, have been audited
governance, we determine those matters that were of by the predecessor auditor who expressed an unmodified
most significance in the audit of the consolidated financial opinion on those statements on May 12, 2022.
statements for the financial year ended March 31, 2023
and are therefore the key audit matters. We describe these Our opinion above on the consolidated financial statements,
matters in our auditor’s report unless law or regulation and our report on Other Legal and Regulatory Requirements
precludes public disclosure about the matter or when, in below, is not modified in respect of the above matters with

304
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

respect to our reliance on the work done and the reports of and associate company, none of the directors of the
the other auditors and the financial statements and other Group’s company and its associate, incorporated
financial information certified by the Management. in India, is disqualified as on March 31, 2023 from
being appointed as a director in terms of Section
164 (2) of the Act;
Report on Other Legal and Regulatory
Requirements (f) With respect to the adequacy of the internal
financial controls with reference to consolidated
1. As required by the Companies (Auditor’s Report) Order,
financial statements of the Holding Company
2020 (“the Order”), issued by the Central Government
and its subsidiary company and associate
of India in terms of sub-section (11) of section 143 of
the Act, based on our audit and on the consideration company, incorporated in India, and the operating
of report of the other auditors on separate financial effectiveness of such controls, refer to our separate
statements and the other financial information of Report in “Annexure 2” to this report;
the subsidiary company and associate company,
(g) In our opinion and based on the consideration
incorporated in India, as noted in the ‘Other Matter’
of reports of other statutory auditors of the
paragraph we give in the “Annexure 1” a statement on
subsidiary and associate company incorporated
the matters specified in paragraph 3(xxi) of the Order.
in India, the managerial remuneration for the year
2. As required by Section 143(3) of the Act, based on our ended March 31, 2023 has been paid / provided
audit and on the consideration of report of the other by the Holding Company, its subsidiary and
auditors on separate financial statements and the associate incorporated in India to their directors in
other financial information of subsidiary and associate accordance with the provisions of section 197 read
company, as noted in the ‘other matter’ paragraph we with Schedule V to the Act;
report, to the extent applicable, that:
(h) With respect to the other matters to be included
(a) We/the other auditors whose report we have in the Auditor’s Report in accordance with Rule 11
relied upon have sought and obtained all the of the Companies (Audit and Auditors) Rules, 2014,
information and explanations which to the best of as amended, in our opinion and to the best of our
our knowledge and belief were necessary for the information and according to the explanations
purposes of our audit of the aforesaid consolidated given to us and based on the consideration of the
financial statements; report of the other auditors on separate financial
statements as also the other financial information
(b) In our opinion, proper books of account as required
of the subsidiary and associate, as noted in the
by law relating to preparation of the aforesaid
‘Other matter’ paragraph:
consolidation of the financial statements have
been kept so far as it appears from our examination i. The consolidated financial statements disclose
of those books and reports of the other auditors; the impact of pending litigations on its
consolidated financial position of the Group, its
(c) The Consolidated Balance Sheet, the Consolidated
associate and joint venture in its consolidated
Statement of Profit and Loss including the
Statement of Other Comprehensive Income, financial statements – Refer Note C12 to the
the Consolidated Cash Flow Statement and consolidated financial statements;
Consolidated Statement of Changes in Equity
ii. Provision has been made in the consolidated
dealt with by this Report are in agreement with
financial statements, as required under the
the books of account maintained for the purpose
applicable law or accounting standards, for
of preparation of the consolidated financial
material foreseeable losses, if any, on long-
statements;
term contracts including derivative contracts –
(d) In our opinion, the aforesaid consolidated financial Refer (a) Note C9 to the consolidated financial
statements comply with the Accounting Standards statements in respect of such items as it relates
specified under Section 133 of the Act, read with to the Group, its associate and its joint venture
Companies (Indian Accounting Standards) Rules, and (b) the Group’s share of net profit in respect
2015, as amended; of its associate and joint venture;

(e) On the basis of the written representations received iii. There has been no delay in transferring
from the directors of the Holding Company as on amounts, required to be transferred, to the
March 31, 2023 taken on record by the Board of Investor Education and Protection Fund by
Directors of the Holding Company and the reports the Holding Company, its subsidiary and
of the statutory auditors who are appointed under associate incorporated in India during the
Section 139 of the Act, of its subsidiary company year ended March 31, 2023.

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Annual Report 2022-23

iv. a) The management has represented that, auditor’s notice that has caused us or
to the best of its knowledge and belief, the other auditors to believe that the
no funds have been advanced or loaned representations under sub-clause (a) and
or invested (either from borrowed funds (b) contain any material mis-statement.
or share premium or any other sources
or kind of funds) by the Group to or in v. The dividend paid by the Holding Company,
any other persons or entities, including its subsidiary and associate company
foreign entities (“Intermediaries”), with incorporated in India during the year in respect
the understanding, whether recorded of the same declared for the previous year is in
in writing or otherwise, that the accordance with section 123 of the Act to the
Intermediary shall, whether, directly or extent it applies to payment of dividend.
indirectly lend or invest in other persons
As stated in Note C20 to the consolidated
or entities identified in any manner
financial statements, the Board of Directors
whatsoever by or on behalf of the
of the Holding Company have proposed final
Company (“Ultimate Beneficiaries”) or
dividend for the year which is subject to the
provide any guarantee, security or the like
approval of the members at the ensuing
on behalf of the Ultimate Beneficiaries;
Annual General Meeting. The dividend
b) The management has represented to the declared is in accordance with section 123 of
best of its knowledge and belief, no funds the Act to the extent it applies to declaration
have been received by the Group from of dividend.
any persons or entities, including foreign
vi. As proviso to Rule 3(1) of the Companies
entities (“Funding Parties”), with the
(Accounts) Rules, 2014 is applicable only
understanding, whether recorded in writing
w.e.f. April 1, 2023 for the Holding Company,
or otherwise, that the Company shall,
its subsidiaries, associate and joint venture
whether, directly or indirectly, lend or invest
companies incorporated in India, hence
in other persons or entities identified in any
reporting under this clause is not applicable.
manner whatsoever by or on behalf of the
Funding Party (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries; and For S.R. Batliboi & Co. LLP
Chartered Accountants
c) Based on the audit procedures that
ICAI Firm Registration Number: 301003E/E300005
have been considered reasonable
and appropriate in the circumstances
performed by us and that performed per Pankaj Chadha
by the auditors of the subsidiary and Partner
associate company which are companies Membership Number: 091813
incorporated in India whose financial UDIN: 23091813BGQOXK6734
statements have been audited under the Place: Gurugram
Act, nothing has come to our or other Date: May 09, 2023

306
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Annexure ‘1’ Referred To In Paragraph Under The Heading “Report On Other Legal And Regulatory
Requirements” Of Our Report Of Even Date

Re: Apollo Tyres Limited (the “Company”)

According to the information and explanations given to us and procedures performed by us, there are no qualifications or
adverse remarks by the respective auditors in the Companies (Auditors Report) Order (CARO) reports of the companies
included in the consolidated financial statements. Accordingly, the requirement to report on clause 3(xxvi) of the Order is not
applicable to the Holding Company.

For S.R. Batliboi & Co. LLP

Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005

per Pankaj Chadha

Partner
Membership Number: 091813
UDIN: 23091813BGQOXK6734
Place: Gurugram
Date: May 09, 2023

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 Apollo Tyres Ltd
Annual Report 2022-23

Annexure ‘2’
Statements Of Apollo Tyres Limted
To The Independent Auditor’s Report of Even Date On The Consolidated Financial

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

In conjunction with our audit of the consolidated financial and their operating effectiveness. Our audit of internal
statements of Apollo Tyres Limited (hereinafter referred to as financial controls with reference to consolidated financial
the “Holding Company”) as of and for the year ended March statements included obtaining an understanding of internal
31, 2023, we have audited the internal financial controls financial controls with reference to consolidated financial
with reference to consolidated financial statements of the statements, assessing the risk that a material weakness
Holding Company and its subsidiary (the Holding Company exists, and testing and evaluating the design and operating
and its subsidiary together referred to as “the Group”) and effectiveness of internal control based on the assessed
its associate , which are companies incorporated in India, as risk. The procedures selected depend on the auditor’s
of that date. judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to
Management’s Responsibility for Internal fraud or error.
Financial Controls We believe that the audit evidence we have obtained and
The respective Board of Directors of the companies included the audit evidence obtained by the other auditors in terms
in the Group and its associate, which are companies of their reports referred to in the Other Matters paragraph
incorporated in India, are responsible for establishing and below, is sufficient and appropriate to provide a basis for
maintaining internal financial controls based on the internal our audit opinion on the internal financial controls with
control over financial reporting criteria established by the reference to consolidated financial statements.
Holding Company considering the essential components
of internal control stated in the Guidance Note on Audit of Meaning of Internal Financial Controls With
Internal Financial Controls Over Financial Reporting issued Reference to Consolidated Financial Statements
by the Institute of Chartered Accountants of India (ICAI).
These responsibilities include the design, implementation A company’s internal financial control with reference to
and maintenance of adequate internal financial controls consolidated financial statements is a process designed
that were operating effectively for ensuring the orderly to provide reasonable assurance regarding the reliability
and efficient conduct of its business, including adherence of financial reporting and the preparation of financial
to the respective company’s policies, the safeguarding of its statements for external purposes in accordance with
assets, the prevention and detection of frauds and errors, generally accepted accounting principles. A company’s
the accuracy and completeness of the accounting records, internal financial control with reference to consolidated
and the timely preparation of reliable financial information, financial statements includes those policies and procedures
as required under the Companies Act, 2013. that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the
Auditor’s Responsibility transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are
Our responsibility is to express an opinion on the Holding recorded as necessary to permit preparation of financial
Company’s internal financial controls with reference to statements in accordance with generally accepted
consolidated financial statements based on our audit. accounting principles, and that receipts and expenditures
We conducted our audit in accordance with the Guidance of the company are being made only in accordance with
Note on Audit of Internal Financial Controls Over Financial authorisations of management and directors of the
Reporting (the “Guidance Note”) and the Standards on company; and (3) provide reasonable assurance regarding
Auditing, specified under section 143(10) of the Act, to the prevention or timely detection of unauthorised acquisition,
extent applicable to an audit of internal financial controls, use, or disposition of the company’s assets that could have a
both, issued by ICAI. Those Standards and the Guidance material effect on the financial statements.
Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls with Inherent Limitations of Internal Financial
reference to consolidated financial statements was Controls With Reference to Consolidated
established and maintained and if such controls operated Financial Statements
effectively in all material respects.
Because of the inherent limitations of internal financial
Our audit involves performing procedures to obtain audit controls with reference to consolidated financial
evidence about the adequacy of the internal financial statements, including the possibility of collusion or improper
controls with reference to consolidated financial statements management override of controls, material misstatements

308
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

due to error or fraud may occur and not be detected. Also, Other Matters
projections of any evaluation of the internal financial
controls with reference to consolidated financial statements Our report under Section 143(3)(i) of the Act on the adequacy
to future periods are subject to the risk that the internal and operating effectiveness of the internal financial controls
with reference to consolidated financial statements of the
financial controls with reference to consolidated financial
Holding Company, in so far as it relates to the 1 subsidiary
statements may become inadequate because of changes
and 1 associate company, which are companies incorporated
in conditions, or that the degree of compliance with the
in India, is based on the corresponding reports of the auditors
policies or procedures may deteriorate.
of such subsidiary and associate incorporated in India.

Opinion
In our opinion, the Holding Company & its subsidiaries &
associates which are companies incorporated in India, For S.R. Batliboi & Co. LLP
have, maintained in all material respects, adequate Chartered Accountants
internal financial controls with reference to consolidated ICAI Firm Registration Number: 301003E/E300005
financial statements and such internal financial controls
with reference to consolidated financial statements were per Pankaj Chadha
operating effectively as at March 31,2023, based on the Partner
internal control over financial reporting criteria established Membership Number: 091813
by the Holding Company considering the essential UDIN: 23091813BGQOXK6734
components of internal control stated in the Guidance Note Place: Gurugram
issued by the ICAI. Date: May 09, 2023

309
 Apollo Tyres Ltd
Annual Report 2022-23

Consolidated
as at March 31, 2023
Balance Sheet
H Million
As at As at
Notes
March 31, 2023 March 31, 2022
A. ASSETS
1. Non-current assets
(a) Property, plant and equipment B1 158,855.99 157,903.01
(b) Capital work-in-progress C25 1,993.59 5,947.39
(c) Right of use assets C4 7,998.33 8,479.34
(d) Goodwill C3 2,288.21 2,158.07
(e) Other intangible assets B1 7,386.83 7,372.81
(f) Intangible assets under development C25 532.03 234.95
(g) Financial assets
i. Investment in associate / joint venture B2 49.82 48.03
ii. Other investments B3 290.94 258.54
iii. Other financial assets B4 4,115.74 3,985.10
(h) Deferred tax assets (net) C6 718.92 1,045.22
(i) Other non-current assets B5 774.65 915.95
Total non-current assets 185,005.05 188,348.41
2. Current assets
(a) Inventories B6 44,284.62 41,553.86
(b) Financial assets
i. Investments B7 4,016.94 4,506.06
ii. Trade receivables B8 24,885.34 20,512.92
iii. Cash and cash equivalents B9 8,360.11 8,706.36
iv. Bank balances other than (iii) above B10 102.21 2,100.20
v. Other financial assets B11 2,022.64 2,038.34
(c) Other current assets B12 4,915.19 3,691.89
Total current assets 88,587.05 83,109.63
Total Assets (1+2) 273,592.10 271,458.04
B. EQUITY AND LIABILITIES
1. Equity
(a) Share capital B13 635.10 635.10
(b) Other equity B14 128,142.73 116,886.22
Total equity 128,777.83 117,521.32
Liabilities
2. Non-current liabilities
(a) Financial liabilities
i. Borrowings B15 37,898.44 44,084.74
ii. Lease liabilities C4 6,141.74 6,404.61
(b) Provisions B16 1,347.23 1,479.59
(c) Deferred tax liabilities (net) C6 9,593.99 9,013.56
(d) Other non-current liabilities B17 9,728.97 11,906.22
Total non-current liabilities 64,710.37 72,888.72
3. Current liabilities
(a) Financial liabilities
i. Borrowings B18 17,978.06 17,851.86
ii. Lease liabilities C4 2,187.06 2,267.94
iii. Trade payables B19
 - Total outstanding dues of micro enterprises and small 306.28 337.63
enterprises
-Total outstanding dues of creditors other than micro 33,232.22 34,971.82
enterprises and small enterprises
iv. Other financial liabilities B20 4,408.25 5,028.44
(b) Other current liabilities B21 18,793.79 17,725.02
(c) Provisions B22 2,144.64 2,004.88
(d) Current tax liabilities (net) B23 1,053.60 860.41
Total current liabilities 80,103.90 81,048.00
Total Equity And Liabilities (1+2+3) 273,592.10 271,458.04

See accompanying notes forming part of the consolidated financial statements

As per our report of even date
For S.R. Batliboi & CO. LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No. 301003E/E300005 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman Vice Chairman & Managing Director
Director
per Pankaj Chadha DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 091813 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Place: Gurugram Place: Amsterdam Membership No - FCS 6690
Date: May 9, 2023 Date: May 9, 2023

310
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Consolidated Statement of Profit and Loss

for the year ended March 31, 2023
H Million
For the year ended For the year ended
Notes
March 31, 2023 March 31, 2022
1. Revenue from operations
Sale of products C27 241,223.24 205,808.14
Other operating income B24 4,458.06 3,667.64
245,681.30 209,475.78
2. Other income B25 410.92 1,234.81
3. Total income (1 +2) 246,092.22 210,710.59
4. Expenses
(a) Cost of materials consumed B26A 122,619.59 109,554.29
(b) Purchase of stock-in-trade B26B 26,782.74 22,060.30
(c) Changes in inventories of finished goods, stock-in-trade and work-in- (3,031.77) (7,759.56)
progress
(d) Employee benefits expense B26C 26,199.21 25,742.37
(e) Finance costs B27 5,312.35 4,444.23
(f) Depreciation and amortisation expense B1 14,191.42 13,996.73
(g) Other expenses B26D 39,975.00 34,137.37
Total expenses 232,048.54 202,175.73
5. Profit before share of profit in associate / joint venture, exceptional items 14,043.68 8,534.86
and tax (3 - 4)
6. Share of profit in associate / joint venture 2.42 0.96
7. Profit before exceptional items and tax (5 + 6) 14,046.10 8,535.82
8. Exceptional items C28 (225.77) 59.08
9. Profit before tax (7 - 8) 14,271.87 8,476.74
10. Tax expense C6
(a) Current tax 2,506.93 947.96
(b) Deferred tax 718.58 1,142.78
Total tax expense 3,225.51 2,090.74
11. Profit for the year (9 - 10) 11,046.36 6,386.00
12. Other comprehensive income / (loss)
I i. Items that will not be reclassified to profit or loss
(a) Re-measurement gain / (loss) of defined benefit plans 328.89 35.20
ii. Income tax (85.24) (3.79)
243.65 31.41
II i. Items that will be reclassified to profit or loss
(a) Exchange differences in translating the financial statements of 1,989.27 (1,203.02)
foreign operations
(b) Effective portion of gain / (loss) on designated portion of 63.50 151.36
hedging instruments in cash flow hedge
ii. Income tax (22.19) (52.89)
2,030.58 (1,104.55)
Other comprehensive income / (loss) (I + II) 2,274.23 (1,073.14)
Total comprehensive income for the year (11 + 12) 13,320.59 5,312.86
Earnings per share (of J 1 each) C29
(a) Basic (H) 17.39 10.06
(b) Diluted (H) 17.39 10.06

See accompanying notes forming part of the consolidated financial statements

As per our report of even date

For S.R. Batliboi & CO. LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No. 301003E/E300005 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman Vice Chairman & Managing Director
Director
per Pankaj Chadha DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 091813 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Place: Gurugram Place: Amsterdam Membership No - FCS 6690
Date: May 9, 2023 Date: May 9, 2023

311
312
Consolidated Statement of Changes in Equity
for the year ended March 31, 2023
A. EQUITY SHARE CAPITAL
H Million
Particulars Amount
Balance as at March 31, 2021 635.10
Changes during the year -
Balance as at March 31, 2022 635.10
Changes during the year -
Balance as at March 31, 2023 635.10

B. OTHER EQUITY
H Million
Reserves and surplus 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 consolidation AMHPL subsidy forfeiture of earnings cash flow surplus translation
reserve reserve
merger shares hedge reserve
Balance as at 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
Profit for the year - - - - - - - - 6,386.00 - - - 6,386.00
Other Comprehensive income (OCI) for - - - - - - - - - 98.47 - (1,203.02) (1,104.55)
the year (net)
Remeasurement of defined benefit plans (net) - - - - - - - - 31.41 - - - 31.41
Total comprehensive income / (loss) for - - - - - - - - 6,417.41 98.47 - (1,203.02) 5,312.86
the year
Transfer from retained earnings - 1,000.00 - - - - - - (1,000.00) - - - -
Payment of dividend (H 3.50 per share) - - - - - - - - (2,222.85) - - - (2,222.85)
Balance as at March 31, 2022 31,317.67 17,006.63 2,664.95 1,383.68 1,039.50 25.50 44.40 0.07 67,150.01 1.16 31.22 (3,778.57) 116,886.22
Profit for the year - - - - - - - - 11,046.36 - - - 11,046.36
Other Comprehensive income (OCI) for the - - - - - - - - - 41.31 - 1,989.27 2,030.58
year (net)
Remeasurement of defined benefit plans (net) - - - - - - - - 243.65 - - - 243.65
Total comprehensive income / (loss) for - - - - - - - - 11,290.01 41.31 - 1,989.27 13,320.59
the year
Payment of dividend (H 3.25 per share) - - - - - - - - (2,064.08) - - - (2,064.08)
Balance as at March 31, 2023 31,317.67 17,006.63 2,664.95 1,383.68 1,039.50 25.50 44.40 0.07 76,375.94 42.47 31.22 (1,789.30) 128,142.73

See accompanying notes forming part of the consolidated financial statements

As per our report of even date
For S.R. Batliboi & CO. LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No. 301003E/E300005 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman Vice Chairman & Managing Director Director
per Pankaj Chadha DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 091813 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Place: Gurugram Place: Amsterdam Membership No - FCS 6690
Annual Report 2022-23
Apollo Tyres Ltd

Date: May 9, 2023 Date: May 9, 2023

 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Consolidated Cash Flow Statement

for the year ended March 31, 2023

H Million
For the year ended For the year ended
March 31, 2023 March 31, 2022
A CASH FLOW FROM OPERATING ACTIVITIES
(i) Net profit before tax 14,271.87 8,476.74
Adjustments for
Depreciation and amortisation expense 14,191.42 13,996.73
Profit on sale of property, plant and equipment (net) (39.89) (90.22)
Gain from current investments (55.19) (24.15)
Provision for doubtful debts / advances 71.76 57.61
Provisions / liabilities no longer required written back (204.59) (33.62)
Finance cost 5,312.35 4,444.23
Interest income (257.08) (402.98)
Exceptional item (225.77) -
Unwinding of deferred income (2,266.57) (1,540.68)
Unwinding of state aid subsidy (160.21) (183.29)
Share of (profit) / loss in associate / joint venture (2.42) (0.96)
Unrealized loss / (gain) on foreign exchange fluctuations 591.97 (113.28)
Effect of foreign currency fluctuation arising out of 174.98 17,130.76 0.54 16,109.93
consolidation
(ii) Operating profit before working capital changes 31,402.63 24,586.67
Changes in working capital
Adjustments for (increase) / decrease in operating assets
Inventories (1,572.41) (8,628.18)
Trade receivables (3,671.08) (3,186.32)
Other financial assets (current and non-current) (164.53) 1,220.43
Other assets (current and non-current) (1,124.75) (6,532.77) 65.56 (10,528.51)
Adjustments for increase / (decrease) in operating liabilities
Trade payables (2,869.58) 7,557.90
Other financial liabilities (current and non-current) 397.84 (200.51)
Other liabilities (current and non-current) 917.39 1,316.12
Provisions (current and non-current) 196.72 (1,357.63) 26.21 8,699.72
(iii) Cash generated from operations 23,512.23 22,757.88
Direct taxes paid (net of refund) (2,168.34) (1,222.28)
Net cash generated from operating activities 21,343.89 21,535.60
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and (7,745.71) (18,462.41)
intangible assets
Proceeds from sale of property, plant and equipment 141.25 298.75
and intangible assets
Maturity of / (Investments in) mutual funds, net 544.31 (3,581.23)
Non-current investment made, net (32.70) (108.36)
Maturity of fixed deposits, net 2,000.00 9,650.00
Interest received 331.45 481.62
Net cash used in investing activities (4,761.40) (11,721.63)
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from non-current borrowings 5,000.00 14,214.72
Repayment of non-current borrowings (9,064.99) (21,851.84)
(Repayment of) / proceeds from current borrowings (net) (3,419.00) 5,761.98
(excluding current maturities of non-current borrowings)
Payment of dividend (2,064.08) (2,222.85)
Payment of prinicipal portion of lease liabilities (2,108.57) (2,182.26)
Payment of interest on lease liabilities (468.18) (511.81)
Finance charges paid (4,793.42) (4,021.92)
Net cash used in financing activities (16,918.24) (10,813.98)
Net decrease in cash and cash equivalents (A+B+C) (335.75) (1,000.01)

313
 Apollo Tyres Ltd
Annual Report 2022-23

Consolidated Cash Flow Statement(Contd.)

for the year ended March 31, 2023
H Million
For the year ended For the year ended
March 31, 2023 March 31, 2022
Cash and cash equivalents as at the beginning of the year 8,706.36 9,713.49
Less: Cash credits as at the beginning of the year 4.18 4.85
8,702.18 9,708.64
(Gain) / loss on re-statement of foreign currency cash 22.63 16.18
and cash equivalents
Adjusted cash and cash equivalents as at the beginning 8,724.81 9,724.82
of the year
Cash and cash equivalents as at the end of the year 8,360.11 8,706.36
Less: Cash credits as at the end of the year 9.76 4.18
8,350.35 8,702.18
(Gain) / loss on re-statement of foreign currency cash 38.71 22.63
and cash equivalents
Adjusted cash and cash equivalents as at the end of the year 8,389.06 8,724.81

The above consolidated cash flow statement has been prepared under the "Indirect Method" as set out in Indian Accounting
Standard-7, "Statement of Cash Flows"

As per our report of even date

For S.R. Batliboi & CO. LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No. 301003E/E300005 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman Vice Chairman & Managing Director
Director
per Pankaj Chadha DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 091813 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Place: Gurugram Place: Amsterdam Membership No - FCS 6690
Date: May 9, 2023 Date: May 9, 2023

314
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

A. NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS

1. GROUP CORPORATE INFORMATION IFRS 3 to clarify that contingent assets do not

qualify for recognition at the acquisition date.
The consolidated financial statements comprise
financial statements of Apollo Tyres Limited (‘the This amendment had no impact on the consolidated
Company’) and its subsidiaries (hereinafter collectively financial statements of the Group as there were
referred to as ‘the Group’) for the year ended March no contingent assets, liabilities or contingent
31, 2023. The Company is a public Company domiciled liabilities within the scope of these amendment
in India and is incorporated under the provisions of that arose during the period.
the Companies Act applicable in India. Its shares are
listed on two recognised stock exchanges in India. The (ii) Property, Plant and Equipment: Proceeds before
registered office of the Company is Apollo Tyres ltd, Intended Use – Amendment to Ind AS 16
3rd Floor, Areekal mansion, Panampilly Nagar, Kochi The amendment modified paragraph 17(e) of Ind
682036, India.
AS 16 to clarify that excess of net sale proceeds of
The principal business activity of Apollo Tyres Limited items produced over the cost of testing, if any, shall
(‘the Company’) is manufacturing and sale of not be recognised in the statement of profit and
automotive tyres. The Company started its operations loss but deducted from the directly attributable
in 1972 with its first manufacturing plant at Perambra in costs considered as part of cost of an item of
Kerala. property, plant, and equipment.

The Company’s largest operations are in India and The amendment is effective for annual reporting
comprises five tyre manufacturing plants, two located periods beginning on or after April 1, 2022. This
in Cochin and one each at Vadodara, Chennai and amendment had no impact on the consolidated
Andhra Pradesh and various sales and marketing financial statements of the Group as there were
offices spread across the country. The Company’s no sales of such items produced by property, plant
European subsidiaries Apollo Tyres (NL) B.V and Apollo and equipment made available for use on or after
Tyres (Hungary) Kft. have a manufacturing plant in the the beginning of the earliest period presented.
Netherlands and Hungary respectively. It also has sales
(iii) Ind AS 109 Financial Instruments – Fees in the ’10 per
and marketing subsidiaries across the globe.
cent’ test for derecognition of financial liabilities

2. RECENT ACCOUNTING PRONOUNCEMENTS The amendment clarifies the fees that an entity
includes when assessing whether the terms of a
2.1 Amended standards adopted by the Group new or modified financial liability are substantially
different from the terms of the original financial
(i) 
Reference to the Conceptual Framework –
liability. These fees include only those paid or
Amendment to Ind AS 103
received between the borrower and the lender,
The amendment replaced the reference to the including fees paid or received by either the
ICAI’s “Framework for the Preparation and borrower or lender on the other’s behalf.
Presentation of Financial Statements under Indian
This amendment had no impact on the consolidated
Accounting Standards” with the reference to the
financial statements of the Group as there were no
“Conceptual Framework for Financial Reporting
modifications of the Group’s financial instruments
under Indian Accounting Standard” without
which were covered by amendment.
significantly changing its requirements.
(iv) Onerous Contracts – Costs of Fulfilling a Contract
The amendment also added an exception to
– Amendment to Ind AS 37
the recognition principle of Ind AS 103 Business
Combinations to avoid the issue of potential ‘day 2’ An onerous contract is a contract under which
gains or losses arising for liabilities and contingent the unavoidable of meeting the obligations under
liabilities that would be within the scope of Ind the contract costs (i.e., the costs that the Group
AS 37 Provisions, Contingent Liabilities and cannot avoid because it has the contract) exceed
Contingent Assets or Appendix C, Levies, of Ind AS the economic benefits expected to be received
37, if incurred separately. The exception requires under it.
entities to apply the criteria in Ind AS 37 or Appendix
C, Levies, of Ind AS 37, respectively, instead of the The amendment specifies that when assessing
Conceptual Framework, to determine whether a whether a contract is onerous or loss-making,
present obligation exists at the acquisition date. an entity needs to include costs that relate
The amendment also adds a new paragraph to directly to a contract to provide goods or services

315
 Apollo Tyres Ltd
Annual Report 2022-23

including both incremental costs (e.g., the costs rise to equal taxable and deductible temporary
of direct labour and materials) and an allocation differences.
of costs directly related to contract activities
(e.g., depreciation of equipment used to fulfil the The amendment should be applied to transactions
contract and costs of contract management and that occur on or after the beginning of the earliest
supervision). General and administrative costs do comparative period presented. In addition,
not relate directly to a contract and are excluded at the beginning of the earliest comparative
unless they are explicitly chargeable to the period presented, a deferred tax asset (provided
counterparty under the contract. that sufficient taxable profit is available) and a
deferred tax liability should also be recognised for
2.2 Standards issued but not yet effective all deductible and taxable temporary differences
associated with leases and decommissioning
The Ministry of Corporate Affairs has notified Companies obligations. Consequential amendment has been
(Indian Accounting Standards) Amendment Rules, made in Ind AS 101. The amendment to Ind AS 12
2023 dated March 31, 2023 to amend the following Ind are applicable for annual periods beginning on or
AS which are effective from April 1, 2023. after April 1, 2023.
(i) Definition of Accounting Estimates - Amendment This amendment is likely to have an impact on
to Ind AS 8 the Group’s financial statement which is currently
The amendment clarifies the distinction between being assessed by the management. Any necessary
changes in accounting estimates and changes adjustment required shall be accounted for in the
in accounting policies and the correction of next period financial statements.
errors. It has also been clarified how entities use
measurement techniques and inputs to develop 3. 
BASIS OF CONSOLIDATION AND
accounting estimates. SIGNIFICANT ACCOUNTING POLICIES
The amendment is effective for annual reporting 3.1 Statement of compliance
periods beginning on or after April 1, 2023 and
apply to changes in accounting policies and The consolidated financial statements have been
changes in accounting estimates that occur on or prepared to comply in all respects with Indian
after the start of that period. Accounting Standards (hereinafter referred to as
the ‘Ind AS’). notified under the Companies (Indian
The amendment is not expected to have a material Accounting Standards) Rules, 2015 (as amended from
impact on the Group’s consolidated financial time to time) and presentation requirements of Division
statements. II of Schedule III to the Companies Act, 2013, (Ind AS
compliant Schedule III), as applicable to the CFS
(ii) Disclosure of Accounting Policies - Amendment to
Ind AS 1 The consolidated financial statements are presented
The amendment aims to help entities provide in Indian Rupee (‘INR’), which is also the functional
accounting policy disclosures that are more currency of the Company.
useful by replacing the requirement for entities The consolidated financial statements for the year
to disclose their ‘significant’ accounting policies ended March 31, 2023 were authorised and approved
with a requirement to disclose their ‘material’ for issue by the Board of Directors on May 09, 2023.
accounting policies and adding guidance on how
entities apply the concept of materiality in making 3.2 Basis of preparation and presentation of consolidated
decisions about accounting policy disclosures. financial statements

The amendment to Ind AS 1 are applicable for The consolidated financial statements have been
annual periods beginning on or after April 1, 2023. prepared on accrual basis under the historical cost
Consequential amendment has been made in convention except for certain financial instruments that
Ind AS 107. The Group is currently revisiting their are measured at fair value at the end of each reporting
accounting policy information disclosures to ensure period, as explained in the accounting policies below. The
consistency with the amended requirements. Group has prepared the financial statements on the basis
that it will continue to operate as a going concern.
(iii) Deferred Tax related to Assets and Liabilities
arising from a Single Transaction - Amendment to Historical cost is generally based on the fair value of the
Ind AS 12 consideration given in exchange for goods and services.

The amendment narrows the scope of the initial Fair value is the price that would be received to sell
recognition exception under Ind AS 12, so that an asset or paid to transfer a liability in an orderly
it no longer applies to transactions that give transaction between market participants at the

316
Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

measurement date, regardless of whether that price The terms of the liability that could, at the option of
is directly observable or estimated using another the counterparty, result in its settlement by the issue of
valuation technique. In estimating the fair value of equity instruments do not affect its classification.
an asset or a liability, the Group takes into account
the characteristics of the asset or liability if market The group classifies all other liabilities as non-current.
participants would take those characteristics into Deferred tax assets and liabilities are classified as non-
account when pricing the asset or liability at the current assets and liabilities.
measurement date. Fair value for measurement
and/or disclosure purposes in these consolidated The operating cycle is the time between the acquisition
financial statements is determined on above basis and of assets for processing and their realisation in cash
measurements that have some similarities to fair value and cash equivalents. The group has identified twelve
but are not fair value, such as net realisable value in Ind months as its operating cycle.
AS 2 Inventories or value in use in Ind AS 36 Impairment
of Assets. The significant accounting policies are set out below:

In addition, for financial reporting purposes, fair value 3.3 Basis of consolidation
measurements are categorised into Level 1, 2 or 3 based The consolidated financial statement includes the
on the degree to which the inputs to the fair value financial statements of the Company, its subsidiaries
measurements are observable and the significance of and the entities controlled by the Group as at March 31,
the inputs to the fair value measurement in its entirety, 2023. Control is achieved when the Group:
which are described as follows:
• has power over the investee;
• Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities. • has the ability to use its power to affect its return; and

• Level 2 - Valuation techniques for which the lowest • is exposed, or has rights, to variable returns from
level input that is significant to the fair value its involvement with the investee.
measurement is directly or indirectly observable.
The Group reassesses whether or not it controls an
• Level 3 - Valuation techniques for which the lowest investee if facts and circumstances indicate that there
level input that is significant to the fair value are changes to one or more of the three elements of
measurement is unobservable. control listed above.

Current versus non-current classification Consolidation of a subsidiary begins when the Group
obtains control over the subsidiary and ceases when
The group presents assets and liabilities in the balance the Group loses control of the subsidiary. Assets,
sheet based on current/ non-current classification. An liabilities, income and expenses of a subsidiary acquired
asset is treated as current when it is: or disposed of during the year are included in the
consolidated statement of profit and loss from the date
• Expected to be realised or intended to be sold or
the Group gains control until the date when the Group
consumed in normal operating cycle
ceases to control the subsidiary.
• Held primarily for the purpose of trading
Consolidated financial statements are prepared using
• Expected to be realised within twelve months after uniform accounting policies for like transactions and
the reporting period, or other events in similar circumstances. If a member of
the Group uses accounting policies other than those
• Cash or cash equivalent unless restricted from adopted in the consolidated financial statements for
being exchanged or used to settle a liability for at like transactions and events in similar circumstances,
least twelve months after the reporting period appropriate adjustments are made to that Group
All other assets are classified as non-current. member’s financial statements in preparing the
consolidated financial statements to ensure conformity
A liability is current when: with the Group’s accounting policies.

• It is expected to be settled in normal operating cycle Consolidation procedure:

• It is held primarily for the purpose of trading (a) Combine like items of assets, liabilities, equity,
• It is due to be settled within twelve months after income, expenses and cash flows of the parent with
those of its subsidiaries. For this purpose, income
the reporting period, or
and expenses of the subsidiary are based on the
• 
There is no unconditional right to defer the amounts of the assets and liabilities recognised
settlement of the liability for at least twelve in the consolidated financial statements at the
months after the reporting period acquisition date.

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(b) Offset (eliminate) the carrying amount of the When the consideration transferred by the Group
parent’s investment in each subsidiary and the in a business combination includes assets or
parent’s portion of equity of each subsidiary. liabilities resulting from a contingent consideration
Business combinations policy explains how to arrangement, the contingent consideration is
account for any related goodwill. measured at its acquisition-date fair value and
included as part of the consideration transferred in a
(c) Eliminate in full intragroup assets and liabilities,
business combination. Changes in the fair value of the
equity, income, expenses and cash flows relating
contingent consideration that qualify as measurement
to transactions between entities of the group
(profits or losses resulting from intragroup period adjustments are adjusted retrospectively, with
transactions that are recognised in assets, such as corresponding adjustments against goodwill or capital
inventory and fixed assets, are eliminated in full). reserve, as the case maybe. Measurement period
Intragroup losses may indicate an impairment adjustments are adjustments that arise from additional
that requires recognition in the consolidated information obtained during the ‘measurement period’
financial statements. Ind AS 12 Income Taxes (which cannot exceed one year from the acquisition
applies to temporary differences that arise from date) about facts and circumstances that existed at
the elimination of profits and losses resulting from the acquisition date.
intragroup transactions.
The subsequent accounting for changes in the fair
3.4 Business combinations value of the contingent consideration that do not
qualify as measurement period adjustments depends
Acquisitions of businesses are accounted for using the
on how the contingent consideration is classified.
acquisition method. The consideration transferred in a
Contingent consideration that is classified as equity is
business combination is measured at fair value, which
not remeasured at subsequent reporting dates and its
is calculated as the sum of the acquisition-date fair
subsequent settlement is accounted for within equity.
values of the assets transferred by the Group, liabilities
incurred by the Group to the former owners of the Contingent consideration that is classified as an asset
acquiree and the equity interests issued by the Group or a liability is remeasured at fair values at subsequent
in exchange of control of the acquiree. Acquisition- reporting dates with the corresponding gain or loss
related costs are generally recognised in consolidated being recognised in consolidated statement of profit
statement of profit and loss as incurred. and loss.

At the acquisition date, the identifiable assets acquired When a business combination is achieved in stages,
and the liabilities assumed are recognised at their fair the Group’s previously held equity interest in the
value, except that: acquiree is remeasured to its acquisition-date fair value
and the resulting gain or loss, if any, is recognised in
• deferred tax assets or liabilities, and assets consolidated statement of profit and loss. Amounts
or liabilities related to employee benefit
arising from interests in the acquiree prior to the
arrangements are recognised and measured in
acquisition date that have previously been recognised
accordance with Ind AS 12 Income Taxes and Ind
in other comprehensive income are reclassified to
AS 19 Employee Benefits respectively;
consolidated statement of profit and loss where such
• liabilities or equity instruments related to share- treatment would be appropriate if that interest were
based payment arrangements of the acquiree or disposed of.
share-based payment arrangements of the Group
entered into to replace share-based payment If the initial accounting for a business combination
arrangements of the acquiree are measured in is incomplete by the end of the reporting period in
accordance with Ind AS 102 Share-based Payment which the combination occurs, the Group reports
at the acquisition date; and provisional amounts for the items for which the
accounting is incomplete. Those provisional amounts
• assets (or disposal groups) that are classified are adjusted during the measurement period (see
as held for sale in accordance with Ind AS 105 above), or additional assets or liabilities are recognised,
Non-current Assets Held for Sale and Discontinued to reflect new information obtained about facts and
Operations are measured in accordance with that circumstances that existed at the acquisition date that,
Standard.
if known, would have affected the amounts recognised
Goodwill is measured as the excess of the sum of the at that date.
consideration transferred, the amount of any non-
Business combinations involving entities or businesses
controlling interests in the acquiree, and the fair value
under common control are accounted for using the
of the acquirer’s previously held equity interest in the
pooling of interest method.
acquiree (if any) over the net of the acquisition-date
amounts of the identifiable assets acquired and the
liabilities assumed.

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The pooling of interest method is considered to involve An investment in an associate or a joint venture is
the following: accounted for using the equity method from the date on
which the investee becomes an associate or a joint venture.
(i) The assets and liabilities of the combining entities On acquisition of the investment in an associate or a joint
are reflected at their carrying amounts. venture, any excess of the cost of the investment over
the Group's share of the net fair value of the identifiable
(ii) No adjustments are made to reflect fair values or
assets and liabilities of the investee is recognised as
recognise any new assets or liabilities. The only
goodwill, which is included within the carrying amount of
adjustments that are made are to harmonise
the investment. Any excess of the Group's share of the net
accounting policies.
fair value of the identifiable assets and liabilities over the
(iii) The financial information in the financial cost of the investment, after reassessment, is recognised
statements in respect of prior periods is restated as directly in equity as capital reserve in the period in which
if the business combination had occurred from the the investment is acquired.
beginning of the preceding period in the financial The financial statements of the associate or joint venture
statements, irrespective of the actual date of the are prepared for the same reporting period as the Group.
business combination. When necessary, adjustments are made to bring the
accounting policies in line with those of the Group.
(iv) The identity of the reserves has been preserved
and appear in the financial statements of the After application of the equity method of accounting,
transferee in the same form in which they appeared the Group determines whether there is any objective
in the financial statements of the transferor. evidence of impairment as a result of one or more
events that occurred after the initial recognition of
3.5 Investments in associates and joint venture
the net investment in an associate or a joint venture
An associate is an entity over which the Group has and that event (or events) has an impact on the
significant influence. Significant influence is the power estimated future cash flows from the net investment
to participate in the financial and operating policy that can be reliably estimated. If there exists such an
decisions of the investee but is not control or joint objective evidence of impairment, then it is necessary
control over those policies. to recognise impairment loss with respect to the Groups
investment in an associate or a joint venture.
A joint venture is a joint arrangement whereby the
When necessary, the entire carrying amount of
parties that have joint control of the arrangement have
the investment (including goodwill) is tested for
rights to the net assets of the joint arrangement. Joint
impairment in accordance with Ind AS 36 Impairment
control is the contractually agreed sharing of control
of Assets as a single asset by comparing its recoverable
of an arrangement, which exists only when decisions
amount (higher of value in use and fair value less costs
about the relevant activities require unanimous consent
of disposal) with its carrying amount, any impairment
of the parties sharing control.
loss recognised forms part of the carrying amount of
The results and assets and liabilities of associates or the investment. Any reversal of that impairment loss is
joint ventures are incorporated in these consolidated recognised in accordance with Ind AS 36 Impairment of
financial statements using the equity method of Assets to the extent that the recoverable amount of the
accounting, except when the investment, or a portion investment subsequently increases.
thereof, is classified as held for sale, in which case
The Group discontinues the use of the equity method
it is accounted for in accordance with Ind AS 105
from the date when the investment ceases to be an
Non-current Assets Held for Sale and Discontinued
associate or a joint venture, or when the investment is
Operations. Under the equity method, an investment classified as held for sale. When the Group retains an
in an associate or a joint venture is initially recognised interest in the former associate or joint venture and
in the consolidated balance sheet at cost and adjusted the retained interest is a financial asset, the Group
thereafter to recognise the Group's share of the profit measures the retained interest at fair value at that
and loss of the associate or joint venture. When the date and the fair value is regarded as its fair value
Group's share of losses of an associate or a joint venture on initial recognition in accordance with Ind AS 109
exceeds the Group's interest in that associate or joint Financial Instruments. The difference between the
venture (which includes any long-term interests that, in carrying amount of the associate or joint venture at the
substance, form part of the Group's net investment in date the equity method was discontinued, and the fair
the associate or joint venture), the Group discontinues value of any retained interest and any proceeds from
recognising its share of further losses. Additional disposing of a part interest in the associate or joint
losses are recognised only to the extent that the Group venture is included in the determination of the gain
has incurred legal or constructive obligations or made or loss on disposal of the associate or joint venture. In
payments on behalf of the associate or joint venture. addition, the Group accounts for all amounts previously
recognised in other comprehensive income in relation

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to that associate or joint venture on the same basis deferred tax and current tax except the ones recognised
as would be required if that associate or joint venture in other comprehensive income or directly in equity.
had directly disposed of the related assets or liabilities.
Therefore, if a gain or loss previously recognised in Current Tax
other comprehensive income by that associate or
Current tax is the amount of tax payable on the taxable
joint venture would be reclassified to statement of
income for the year as determined in accordance with
profit and loss on the disposal of the related assets or
the applicable income tax laws of the country in which
liabilities, the Group reclassifies the gain or loss from
the respective entities in the group are incorporated.
equity to consolidated statement of profit and loss (as
Taxable profit differs from ‘profit before tax’ as
a reclassification adjustment) when the equity method
reported in the consolidated statement of profit and
is discontinued.
loss because of items of income or expense that are
The Group continues to use the equity method when taxable or deductible in other years and items that are
an investment in an associate becomes an investment never taxable or deductible. Management periodically
in a joint venture or an investment in a joint venture evaluates positions taken in the tax returns with
becomes an investment in an associate. There is no respect to situations in which applicable tax regulations
remeasurement to fair value upon such changes in are subject to interpretation and considers whether it
ownership interests. is probable that a taxation authority will accept an
uncertain tax treatment. The group shall reflect the
When the Group reduces its ownership interest in an effect of uncertainty for each uncertain tax treatment
associate or a joint venture but the Group continues by using either most likely method or expected value
to use the equity method, the Group reclassifies method, depending on which method predicts better
to consolidated statement of profit and loss the resolution of the treatment.
proportion of the gain or loss that had previously been
recognised in other comprehensive income relating to Deferred tax
that reduction in ownership interest if that gain or loss
Deferred tax is recognised on temporary differences
would be reclassified to statement of profit and loss on
between the carrying amount of assets and liabilities
the disposal of the related assets or liabilities.
in the consolidated financial statements and quantified
When a group entity transacts with an associate or a using the tax rates and laws enacted or substantively
joint venture of the Group, profits and losses resulting enacted as on the Balance Sheet date. Deferred tax
from the transactions with the associate or joint liabilities are recognised for all taxable temporary
venture are recognised in the Group’s consolidated differences. Deferred tax assets are recognised to the
financial statements only to the extent of interests in extent that it is probable that taxable profit will be
the associate or joint venture that are not related to available against which the deductible temporary
the Group. differences, and the carry forward of unused tax credits
and unused tax losses can be utilised, except:
3.6 Inventories
• When the deferred tax asset relating to the
Inventories are valued at the lower of cost and estimated deductible temporary difference arises from
net realisable value (net of allowances) after providing the initial recognition of an asset or liability in a
for obsolescence and other losses, where considered transaction that is not a business combination
necessary. The cost comprises cost of purchase, cost and, at the time of the transaction, affects neither
of conversion and other costs including appropriate the accounting profit nor taxable profit or loss.
production overheads in the case of finished goods and
work in progress, incurred in bringing such inventories • In respect of deductible temporary differences
to their present location and condition. Trade discounts associated with investments in subsidiaries,
or rebates are deducted in determining the costs of associates and interests in joint ventures, deferred
purchase. Net realisable value represents the estimated tax assets are recognised only to the extent that
selling price for inventories less all estimated costs of it is probable that the temporary differences will
completion and costs necessary to make the sale. reverse in the foreseeable future and taxable profit
will be available against which the temporary
In case of raw materials, stores and spares and traded differences can be utilised.
goods, cost (net of tax credits wherever applicable) is
determined on a moving weighted average basis, and, Deferred tax liabilities are recognised for all taxable
in case of work in progress and finished goods, cost is temporary differences, except:
determined on a First In First Out basis.
• When the deferred tax liability arises from the
3.7 Taxation initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination
Income tax expense recognised in consolidated and, at the time of the transaction, affects neither
statement of profit and loss comprises of the sum of the accounting profit nor taxable profit or loss.

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• In respect of taxable temporary differences borrowed funds attributable to acquisition of qualifying

associated with investments in subsidiaries, fixed assets for the period up to the date when the asset
associate and interests in joint ventures, when the is ready for its intended use, and adjustments arising
timing of the reversal of the temporary differences from foreign exchange differences arising on foreign
can be controlled and it is probable that the currency borrowings to the extent they are regarded
temporary differences will not reverse in the as an adjustment to interest costs. Other incidental
foreseeable future. expenditure attributable to bringing the fixed assets
to their working condition for intended use are also
The carrying amount of deferred tax assets is reviewed capitalised. Subsequent expenditure relating to fixed
at the end of each reporting period and reduced to assets is capitalised only if such expenditure meets the
the extent that it is no longer probable that sufficient recognition criteria.
taxable profits will be available to allow all or part of
the asset to be recovered. In assessing the recoverability Depreciation is recognised so as to write off the cost
of deferred tax assets, the Group relies on the same or valuation of assets (other than freehold land and
forecast assumptions used elsewhere in the financial properties under construction) less their residual values
statements and in other management reports. over their useful lives, using the straight-line method. The
estimated useful lives, residual values and depreciation
The Group offsets deferred tax assets and deferred tax method are reviewed at the end of each reporting period.
liabilities if and only if it has a legally enforceable right to
set off current tax assets and current tax liabilities and the The group, based on technical assessment made
deferred tax assets and deferred tax liabilities relate to by technical expert and management estimate,
income taxes levied by the same taxation authority. The depreciates certain items of building, plant and
Group intends either to settle current tax liabilities and equipment over estimated useful lives which are
assets on a net basis, or to realise the assets and settle the different from the useful life prescribed in Schedule II
liabilities simultaneously, in each future period in which to the Companies Act, 2013. The management believes
significant amounts of deferred tax liabilities or assets are that these estimated useful lives are realistic and reflect
expected to be settled or recovered fair approximation of the period over which the assets
are likely to be used.
Minimum alternate tax (MAT) paid in a year is charged
The estimated average useful life considered for the
to the statement of profit and loss as current tax for
assets are as under.
the year. The deferred tax asset is recognised for MAT
credit available only to the extent that it is probable Category of assets No. of years
that the concerned Company will pay normal income Buildings* 5 - 60
tax during the specified period, i.e., the period for which Plant and equipment 3 - 25
MAT credit is allowed to be carried forward. In the year Electrical installations 1 - 10
in which the group recognizes MAT credit as an asset, Furniture and fixtures 4 - 10
it is created by way of credit to the statement of profit Vehicles 4 - 10
and loss and shown as part of deferred tax asset. The Office equipment 4 - 10
group reviews the “MAT credit entitlement” asset at
each reporting date and writes down the asset to the Assets held under leases are depreciated over their
extent that it is no longer probable that it will pay expected lease term on the same basis as owned assets.
normal tax during the specified period. However, when there is no reasonable certainty that
ownership will be obtained by the end of the lease term,
3.8 Property, plant and equipment (PPE) assets are depreciated over the shorter of the lease
term and their useful lives.
Property, plant and equipment held for use in the
production or supply of goods or services, or for *Leasehold improvements included in Building are
administrative purposes, are stated in the consolidated amortised over their period of lease or useful life,
balance sheet at cost less accumulated depreciation whichever is lower
and accumulated impairment losses. Freehold land is
not depreciated. Leasehold land / Improvements thereon are amortised
over the primary period of lease.
For qualifying assets, borrowing costs are capitalised
in accordance with the Ind AS 23 Borrowing Costs. An item of property, plant and equipment is
Depreciation of these assets, on the same basis as other derecognised upon disposal or when no future economic
property assets, commences when the assets are ready benefits are expected to arise from the continued use
for their intended use. of the asset. Any gain or loss arising on the disposal or
retirement of an item of property, plant and equipment
Property, plant and equipment are capitalised at costs is determined as the difference between the sales
relating to the acquisition and installation (net of tax proceeds and the carrying amount of the asset and is
credits wherever applicable) and include finance cost on recognised in consolidated statement of profit and loss.

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3.9 Intangible assets from development (or from the development phase
of an internal project) is recognised if, and only if,
Intangible assets with finite useful lives are carried at all of the following have been demonstrated:
cost less accumulated amortisation and impairment
losses, if any. Intangible assets with indefinite useful • the technical feasibility of completing the
lives that are acquired separately are carried at cost intangible asset so that it will be available for
less accumulated impairment losses. The cost of an use or sale
intangible asset comprises its purchase price, including
any import duties and other taxes (other than those • the intention to complete the intangible asset
subsequently recoverable from the tax authorities), and use or sell it;
and any directly attributable expenditure on making
• the ability to use or sell the intangible asset;
the asset ready for its intended use and net of any
trade discounts and rebates. Subsequent expenditure • how the intangible asset will generate
on an intangible asset after its purchase / completion probable future economic benefits;
is recognised as an expense when incurred unless it is
probable that such expenditure will enable the asset • the availability of adequate technical,
to generate future economic benefits in excess of its financial and other resources to complete the
originally assessed standards of performance and development and to use or sell the intangible
such expenditure can be measured and attributed to asset; and
the asset reliably, in which case such expenditure is
• the ability to measure reliably the expenditure
added to the cost of the asset. Internally generated
attributable to the intangible asset during its
intangibles are not capitalised and the related
development.
expenditure is reflected in profit or loss in the period in
which the expenditure is incurred. The amount initially recognised for internally-
generated intangible assets is the sum of the
The intangible assets are amortised over their
expenditure incurred from the date when the
respective estimated useful lives on a straight-line basis,
intangible asset first meets the recognition criteria
commencing from the date the asset is available to the
listed above. Where no internally-generated
group for its use. The amortisation period is reviewed
intangible asset can be recognised, development
at the end of each financial year and the changes in
expenditure is recognised in consolidated
the expected useful life or the expected pattern of
statement of profit and loss in the period in which
consumption of future economic benefits embodied in
it is incurred.
the asset are considered to modify the amortisation
period or method, as appropriate, which are treated as Subsequent to initial recognition, internally-
changes in accounting estimates. generated intangible assets are reported at cost
less accumulated amortisation and accumulated
a) Derecognition of intangible assets
impairment losses, on the same basis as intangible
An intangible asset is derecognised upon disposal assets that are acquired separately.
or when no future economic benefits are expected
Development costs of products are also charged
to arise from the continued use of the asset. Gains
to the consolidated statement of profit and loss
or losses arising from derecognition of an intangible
unless a product’s technological feasibility has
asset, measured as the difference between the
been established, in which case such expenditure
net disposal proceeds and the carrying amount
is capitalised. The amount capitalised comprises
of the asset, are recognised in the consolidated
expenditure that can be directly attributed or
statement of profit and loss when the asset is
allocated on a reasonable and consistent basis to
derecognised.
creating, producing and making the asset ready
The useful life considered for the major intangible for its intended use. Property, Plant and Equipment
assets are as under: utilised for research and development are capitalised
and depreciated in accordance with the policies
Category of assets Number of years
stated for Property, Plant and Equipment.
Computer software 3-6
Capitalised development 6 c) Intangible assets acquired in a business combination

b) Research and development expenses Intangible assets acquired in a business combination

and recognised separately from goodwill are initially
Internally generated intangible assets - recognised at their fair value at the acquisition date
Expenditure on research activities is recognised as (which is regarded as their cost).
an expense in the period in which it is incurred.
Subsequent to initial recognition, intangible assets
An internally generated intangible asset arising acquired in a business combination are reported

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at cost less accumulated amortisation and 3.11 Other income

accumulated impairment losses, on the same basis
as intangible assets that are acquired separately. Dividend income from investments is recognised when
the right to receive payment has been established
3.10 Revenue recognition (provided that it is probable that the economic benefits
will flow to the Group and the amount of income can be
In accordance with Ind AS 115, the Group recognizes measured reliably).
the amount as revenue from contracts with customers,
which is received for the transfer of promised goods or Interest income from a financial asset is recognised
services to customers in exchange for those goods or when it is probable that the economic benefits will
services. The relevant point in time or period of time is flow to the group and the amount of income can be
the transfer of control of the goods or services (control measured reliably. Interest income is accrued on a time
approach). The Group recognizes revenue at point in basis, by reference to the principle outstanding and at
time. Revenue is reduced for customer returns, taxes on the effective interest rate applicable, which is the rate
sales, estimated rebates and other similar allowances. that exactly discounts estimated future cash receipts
To determine when to recognize revenue and at what through the expected life of the financial asset to that
amount, the five-step model is applied. By applying asset’s net carrying amount on initial recognition.
the five-step model distinct performance obligations
are identified. Variable consideration includes various 3.12 Employee benefits
forms of sales related obligations like volume discounts,
Employee benefits include wages and salaries, provident
price concessions, incentives etc. on the goods sold
fund, superannuation fund, employee state insurance
or services rendered to its customers, dealers and
scheme, gratuity fund, compensated absences, social
distributors. In all such cases, accumulated experience
security cost and other pension costs incurred by the
is used to estimate and provide for the variability in
group.
revenue, using the expected value method and the
revenue is recognised to the extent that it is highly Defined contribution plans
probable that a significant reversal in the amount of
cumulative revenue recognised will not occur in future Contributions to defined contribution plans are
on account of refund or discounts. The transaction recognised as an expense when employees have
price is determined and allocated to the performance rendered service entitling them to the contributions.
obligation according to the requirements of Ind AS 115.
Performance obligations are deemed to have been met Defined benefit plans
when the control of goods or services is transferred to
For defined benefit plans, the cost of providing benefits
the customer.
is determined using the projected unit credit method,
The Group considers whether there are other promises in with actuarial valuations being carried out at the end
the contract that are separate performance obligations of each annual reporting period.
to which a portion of the transaction price needs to be
Defined benefit costs are categorised as follows:
allocated. In determining the transaction price for the
sale of goods or services, the Group considers the effects • service cost (including current service cost,
of variable consideration, the existence of significant past service cost, as well as gains and losses on
financing components, if any. curtailments and settlements);
Contract balances • net interest expense or income; and
Trade receivables • re-measurement
A receivable represents the Group’s right to an amount Re-measurement, comprising actuarial gains and
of consideration that is unconditional (i.e., only the losses, the effect of the changes to the asset ceiling (if
passage of time is required before payment of the applicable) and the return on plan assets (excluding net
consideration is due). Refer to note 3.21 Financial interest), is reflected immediately in the consolidated
Instruments in accounting policies. balance sheet with a charge or credit recognised in
Contract liabilities other comprehensive income in the period in which
they occur. The re-measurements of the net defined
A contract liability is recognised if a payment is benefit liability are directly recognised in the other
received or a payment is due (whichever is earlier) comprehensive income in the period in which they
from a customer before the Group transfers the related arise. Past service cost is recognised in consolidated
goods or services. Contract liabilities are recognised as statement of profit and loss in the period of a plan
revenue when the Group performs under the contract amendment. Net interest is calculated by applying the
(i.e., transfers control of the related goods or services to discount rate at the beginning of the period to the net
the customer). defined benefit liability or asset.

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The obligations recognised in the consolidated balance denominated in foreign currencies are retranslated at
sheet represents the actual deficit or surplus in the the rates prevailing at the date when the fair value was
Group’s defined benefit plans. Any surplus resulting determined. Non-monetary items that are measured
from this calculation is limited to the present value of in terms of historical cost in a foreign currency are not
any economic benefits available in the form of refunds retranslated.
from the plans or reductions in future contributions to
the plans. Exchange differences on monetary items are recognised
in consolidated statement of profit and loss in the
Other current and non-current employee benefits period in which they arise except for:

Liabilities recognised in respect of short-term employee • 

exchange differences on foreign currency
benefits are measured at the undiscounted amount of borrowings relating to assets under construction
the benefits expected to be paid in exchange for the for future productive use, which are included in the
related service. cost of those assets when they are regarded as
an adjustment to interest costs on those foreign
Liabilities recognised in respect of other long-term currency borrowings;
employee benefits are measured at the present value
of the estimated future cash outflows expected to be • exchange differences on transactions entered into
made by the Group in respect of services provided by in order to hedge certain foreign currency risks;
employees up to the reporting date. and

3.13 Government grants, subsidies and export incentives • exchange differences on monetary items receivable
from or payable to a foreign operation for which
Government grants and subsidies are recognised when settlement is neither planned nor likely to occur
there is reasonable assurance that the Group will (therefore forming part of the net investment in the
comply with the conditions attached to them and the foreign operation), which are recognised initially in
grants / subsidy will be received. other comprehensive income and reclassified from
equity to consolidated statement of profit and loss
Government grants and subsidies whose primary
on repayment of the monetary items.
condition is that the Group should purchase, construct
or otherwise acquire non-current assets are recognised According to Appendix B of Ind AS 21 “Foreign currency
as deferred revenue in the consolidated balance transactions and advance consideration”, purchase or
sheet which is disclosed as investment promotion sale transactions must be translated at the exchange
subsidy receivable and transferred to the consolidated rate prevailing on the date the asset or liability is
statement of profit and loss on a systematic basis over initially recognized. In practice, this is usually the date
the expected useful life of the related assets. on which the advance payment is made or received.
In the case of multiple advances, the exchange rate
Government grants and subsidies related to the income
must be determined for each payment and collection
are deferred which is disclosed as deferred revenue
transaction. The interpretation is mandatory for
arising from government grant in consolidated balance
financial years beginning on or after April 1, 2018. Its
sheet and recognized in the consolidated statement
adoption did not have any significant impact on the
of profit and loss as an income in the period in which
Group’s consolidated financial statements.
related obligations are met.
For the purposes of presenting consolidated financial
Export incentives under various schemes notified by
statements, the assets and liabilities of the Group’s
the Government have been recognised on the basis of
foreign operations (including goodwill and fair value
applicable regulations, and when reasonable assurance
adjustments to identifiable assets acquired and
to receive such revenue is established and disclosed
liabilities assumed through acquisition of a foreign
under other operating income.
operation) are translated into Indian Rupees using
Export incentives earned in the year of exports are exchange rates prevailing at the end of each reporting
netted off from cost of raw material imported. period. Income and expense items are translated at the
average exchange rates for the period, unless exchange
3.14 Foreign currency transaction and translations rates fluctuate significantly during that period, in which
case the exchange rates at the dates of the transactions
The Group’s financial statements are presented in
are used. Exchange differences arising on translation, if
INR which is also the Group’s functional currency.
any, are recognised in other comprehensive income and
Foreign currency transactions are recorded at rates
accumulated in equity.
of exchange prevailing on the date of transaction.
Monetary assets and liabilities denominated in foreign On the disposal of a foreign operation (i.e., a disposal
currencies as at the balance sheet date are translated of the Group’s entire interest in a foreign operation,
at the rate of exchange prevailing at the year-end. a disposal involving loss of control over a subsidiary
Non-monetary items carried at fair value that are that includes a foreign operation, or a partial disposal

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of an interest in a joint arrangement or an associate the economic benefits from the use of the asset through
that includes a foreign operation of which the retained the period of the lease, and (3) the Group has the right
interest becomes a financial asset), all of the exchange to direct the use of the asset.
differences accumulated in equity in respect of that
operation are reclassified to consolidated statement of At the date of commencement of the lease, the
profit and loss. Group recognizes a Right of use (ROU) asset and a
corresponding lease liability for all lease arrangements
In addition, in relation to a partial disposal of subsidiary under which it is a lessee, except for short-term leases
that includes a foreign operation that does not result in the and low value leases. For short-term leases and low
group losing control over the subsidiary, the proportionate value leases, the Group recognizes the lease payments
share of accumulated exchange differences are re- as an expense on a straight-line basis over the term of
attributed to the non-controlling interests and are not the lease.
recognised in the consolidated statement of profit and
loss. For all other partial disposals (i.e partial disposals Certain lease arrangements include options to extend
of associates or joint arrangements that do not result or terminate the lease before the end of the lease term.
in the group losing significant influence or joint control), ROU assets and lease liabilities include these options
the proportionate share of the accumulated exchange when it is reasonably certain that they will be exercised.
differences is reclassified to consolidated statement of
The ROU assets are initially recognized at cost, which
profit and loss.
comprises the initial amount of the lease liability
Goodwill and fair value adjustments to the identifiable adjusted for any lease payments made at or prior to the
assets acquired and liabilities assumed through commencement date of the lease plus any initial direct
acquisition of a foreign operation are treated as assets costs less any lease incentives. They are subsequently
and liabilities of the foreign operation and translated measured at cost less accumulated depreciation and
at the rate of exchange prevailing at the end of each impairment losses.
reporting period. Exchange differences arising are
ROU assets are depreciated from the date of
recognised in other comprehensive income.
commencement of the lease on a straight-line basis
3.15 Borrowing costs over the shorter of the lease term and the useful life of
the underlying asset.
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are The lease liability is initially measured at amortized
assets that necessarily take a substantial period of time cost at the present value of the future lease payments.
to get ready for their intended use or sale, are added to For leases under which the rate implicit in the lease is
the cost of those assets, until such time as the assets are not readily determinable, the Company & subsidiary
substantially ready for their intended use or sale. entities uses its incremental borrowing rate based on
the information available at the date of commencement
All other borrowing costs are recognised in consolidated of the lease in determining the present value of lease
statement of profit and loss in the period in which they payments. Lease liabilities are re measured with a
are incurred. Other finance cost includes interest on corresponding adjustment to the related ROU asset if
other contractual obligations. the Group changes its assessment as to whether it will
exercise an extension or a termination option.
Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing Lease liability and ROU assets have been separately
of funds. Borrowing costs also include exchange presented in the consolidated Balance sheet and the
differences to the extent regarded as an adjustment to payment of principal and interest portion of lease
the borrowing costs. liabilities has been classified as financing cash flows.

3.16 Leases The weighted average incremental borrowing rate

applied to lease liabilities is 1% - 10% p.a.
The Group as a lessee
3.17 Earnings per share
The Group’s lease asset classes primarily consist of
leases for buildings, plant & machinery & vehicles. The Basic earnings per share is computed by dividing the
Group assesses whether a contract contains a lease, consolidated profit / (loss) after tax (including the
at inception of a contract. A contract is, or contains, a post tax effect of extraordinary items, if any) by the
lease if the contract conveys the right to control the use weighted average number of equity shares outstanding
of an identified asset for a period of time in exchange for during the year. Diluted earnings per share is computed
consideration. To assess whether a contract conveys the by dividing the profit / (loss) after tax (including
right to control the use of an identified asset, the Group the post tax effect of extraordinary items, if any) as
assesses whether: (1) the contract involves the use of an adjusted for dividend, interest and other charges to
identified asset, (2) the Group has substantially all of expense or income (net of any attributable taxes)

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relating to the dilutive potential equity shares, by the When an impairment loss subsequently reverses, the
weighted average number of equity shares considered carrying amount of the asset (or a cash-generating
for deriving basic earnings per share and the weighted unit) is increased to the revised estimate of its
average number of equity shares which could have recoverable amount, but so that the increased carrying
been issued on the conversion of all dilutive potential amount does not exceed the carrying amount that
equity shares. Potential equity shares are deemed would have been determined had no impairment loss
to be dilutive only if their conversion to equity shares been recognised for the asset (or cash-generating
would decrease the net profit per share from continuing unit) in prior years. A reversal of an impairment loss is
ordinary operations. Potential dilutive equity shares recognised immediately in consolidated statement of
are deemed to be converted as at the beginning of the profit and loss, unless the relevant asset is carried at
period, unless they have been issued at a later date. a revalued amount, in which case the reversal of the
The dilutive potential equity shares are adjusted for impairment loss is treated as a revaluation increase.
the proceeds receivable had the shares been actually
issued at fair value (i.e., average market value of 3.19 Provisions and contingencies
the outstanding shares). Dilutive potential equity
A provision is recognised when the Group has a present
shares are determined independently for each period
obligation (legal / constructive) as a result of past
presented. The number of equity shares and potentially
events and it is probable that an outflow of resources
dilutive equity shares are adjusted for share splits /
will be required to settle the obligation, in respect of
reverse share splits and bonus shares, as appropriate.
which a reliable estimate can be made.
3.18 Impairment of tangible and intangible assets other
than goodwill The amount recognised as a provision is the best
estimate of the consideration required to settle the
At the end of each reporting period, the Group reviews present obligation at the end of the reporting period,
the carrying amounts of its tangible and intangible taking into account the risks and uncertainties
assets or cash generating units to determine whether surrounding the obligation. When a provision is
there is any indication that those assets have suffered measured using the cash flows estimated to settle the
an impairment loss. If any such indication exists, the present obligation, its carrying amount is the present
recoverable amount of the asset is estimated in order value of those cash flows (when the effect of the time
to determine the extent of the impairment loss (if any). value of money is material).
When it is not possible to estimate the recoverable
amount of an individual asset, the Group estimates Contingent liability is disclosed for (i) Possible obligation
the recoverable amount of the cash-generating which will be confirmed only by future events not wholly
unit to which the asset belongs. When a reasonable within the control of the Group or (ii) Present obligations
and consistent basis of allocation can be identified, arising from past events where it is not probable that an
corporate assets are also allocated to individual cash- outflow of resources will be required to settle the obligation
generating units, or otherwise they are allocated to or a reliable estimate of the amount of the obligation
the smallest group of cash-generating units for which cannot be made. When some or all of the economic
a reasonable and consistent allocation basis can be benefits required to settle a provision are expected to be
identified. recovered from a third party, a receivable is recognised
as an asset if it is virtually certain that reimbursement
Intangible assets with indefinite useful lives and will be received and the amount of the receivable can be
intangible assets not yet available for use are tested measured reliably.
for impairment at least annually, or whenever there is
an indication that the asset may be impaired. Provisions for the expected cost of sales related obligations
are recognised at the date of sale of the relevant products,
Recoverable amount is the higher of fair value less costs at the management’s best estimate of the expenditure
of disposal and value in use. In assessing value in use, required to settle the group’s obligation.
the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects 3.20 Financial instruments
current market assessments of the time value of
money and the risks specific to the asset for which the Financial assets and financial liabilities are recognised
estimates of future cash flows have not been adjusted. when an entity becomes a party to the contractual
provisions of the instruments.
If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the Financial assets and financial liabilities are initially
carrying amount of the asset (or cash-generating unit) is measured at fair value. Transaction costs that are
reduced to its recoverable amount. An impairment loss directly attributable to the acquisition or issue of
is recognised immediately in consolidated statement financial assets and financial liabilities (other than
of profit and loss, unless the relevant asset is carried at financial assets and financial liabilities at fair value
a revalued amount, in which case the impairment loss is through profit or loss) are added to or deducted
treated as a revaluation decrease. from the fair value of the financial assets or financial

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Overview Leadership Report Discussion and Analysis Reports Statements

liabilities, as appropriate, on initial recognition. However, other comprehensive income (FVTOCI) (except for
trade receivables that do not contain a significant investments that are designated as at FVTPL on
financing component are measured at transaction price. initial recognition):
Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at fair value • the asset is held within a business model
through profit or loss are recognised immediately in whose objective is achieved both by collecting
consolidated statement of profit and loss. contractual cash flows and selling financial
assets; and
3.21 Financial assets
• the contractual terms of the instrument give
All regular way purchases or sales of financial assets rise on specified dates to cash flows that are
are recognised and derecognised on a trade date basis. solely payments of principal and interest on
Regular way purchases or sales are purchases or sales the principal amount outstanding.
of financial assets that require delivery of assets within
the time frame established by regulation or convention All other financial assets are subsequently
in the marketplace. measured at fair value.

All recognised financial assets are subsequently c. Assets held for trading
measured in their entirety at either amortised cost
A financial asset is held for trading if:
or fair value, depending on the classification of the
financial assets. • it has been acquired principally for the purpose
of selling it in the near term; or
3.21.1 Classification of financial asset
• on initial recognition it is part of a portfolio
a. Loans and receivable
of identified financial instruments that the
Financial assets that meet the following conditions Group manages together and has a recent
are subsequently measured at amortised cost less actual pattern of short-term profit-taking; or
impairment loss (except for investments that are
• it is a derivative that is not designated and
designated as at fair value through profit or loss
effective as a hedging instrument or a financial
(FVTPL) on initial recognition):
guarantee.
• the asset is held within a business model
Dividends on these investments in equity
whose objective is to hold assets in order to
instruments are recognised in consolidated
collect contractual cash flows; and
statement of profit and loss when the Group’s
• the contractual terms of the instrument give right to receive the dividends is established, it is
rise on specified dates to cash flows that are probable that the economic benefits associated
solely payments of principal and interest on with the dividend will flow to the entity, the
the principal amount outstanding. dividend does not represent a recovery of part of
cost of the investment and the amount of dividend
The effective interest method is a method of can be measured reliably.
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant d. Financial assets at fair value through profit or loss
period. The effective interest rate is the rate that (‘FVTPL’)
exactly discounts estimated future cash receipts
(including all fees and points paid or received that Investments in equity instruments are classified as
form an integral part of the effective interest rate, at FVTPL, unless the Group irrevocably elects on
transaction costs and other premiums or discounts) initial recognition to present subsequent changes
through the expected life of the debt instrument, in fair value in other comprehensive income for
or, where appropriate, a shorter period, to the net equity instruments which are not held for trading.
carrying amount on initial recognition. Debt instrument that do not meet the amortised cost
Income is recognised on an effective interest basis criteria or fair value through other comprehensive
for debt instruments other than those financial income criteria (see above) are measured at
assets classified as at FVTPL. Interest income is FVTPL. In addition, debt instruments that meet the
recognised in consolidated statement of profit and amortised cost criteria or the fair value through other
loss and is included in the ‘Other Income’ line item. comprehensive income criteria but are designated as
at FVTPL are measured at FVTPL.
b. Assets available for sale
A financial asset may be designated as at FVTPL
Financial assets that meet the following conditions upon initial recognition if such designation
are subsequently measured at fair value through eliminates or significantly reduces a measurement

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or recognition inconsistency that would arise from quality as compared to the previous period, the Group
measuring assets or liabilities or recognising the again measures the loss allowance based on 12- month
gains and losses on them on different bases. expected credit losses.

Financial assets at FVTPL are measured at fair When making the assessment of whether there has
value at the end of each reporting period, with been a significant increase in credit risk since initial
any gains or losses arising on re-measurement recognition, the Group uses the change in the risk of a
recognised in consolidated statement of profit and default occurring over the expected life of the financial
loss. The net gain or loss recognised in consolidated instrument. To make that assessment, the Group
statement of profit and loss is included in the other compares the risk of a default occurring on the financial
income line item. Dividend on financial assets instrument as at the reporting date with the risk of a
at FVTPL is recognised when the group’s right to default occurring on the financial instrument as at the
receive the dividends is established, it is probable date of initial recognition and considers reasonable
that the economic benefits associated with the and supportable information, that is available without
dividend will flow to the entity, the dividend does undue cost or effort, that is indicative of significant
not represent a recovery of part of cost of the increases in credit risk since initial recognition.
investment and the amount of dividend can be
measured reliably. For trade receivables and contract assets, the Group
applies a simplified approach in calculating ECLs.
3.21.2 Impairment of financial assets Therefore, the Group does not track changes in credit
risk, but instead recognises a loss allowance based
The Group applies the expected credit loss model on lifetime ECLs at each reporting date. The Group
for recognising impairment loss on financial assets has established a provision matrix that is based on its
measured at amortised cost, debt instruments at historical credit loss experience, adjusted for forward-
FVTOCI, lease receivables, other contractual rights looking factors specific to the debtors and the economic
to receive cash or other financial assets, and financial environment.
guarantees not designated as at FVTPL.
3.21.3 De-recognition of financial assets
Expected credit losses are the weighted average of
credit losses with the respective risks of default occurring The Group derecognises a financial asset when the
as the weights. Credit loss is the difference between contractual rights to the cash flows from the asset expire, or
all contractual cash flows that are due to the Group in when it transfers the financial asset and substantially all the
accordance with the contract and all the cash flows that risks and rewards of ownership of the asset to another party.
the group expects to receive (i.e., all cash shortfalls), If the Group neither transfers nor retains substantially all
discounted at the original effective interest rate (or the risks and rewards of ownership and continues to control
credit-adjusted effective interest rate for purchased or the transferred asset, the Group recognises its retained
originated credit-impaired financial assets). The group interest in the asset and an associated liability for amounts
estimates cash flows by considering all contractual terms it may have to pay. If the Group retains substantially all the
of the financial instrument (for example, prepayment, risks and rewards of ownership of a transferred financial
extension, call and similar options) through the expected asset, the Group continues to recognise the financial asset
life of that financial instruments. and also recognises a collateralised borrowing for the
proceeds received.
The Group measures the loss allowance for a financial
instrument at an amount equal to the lifetime expected On de-recognition of a financial asset in its entirety, the
credit losses if the credit risk on that financial instrument difference between the asset’s carrying amount and the
has increased significantly since initial recognition. If the sum of the consideration received and receivable and
credit risk on a financial instrument has not increased the cumulative gain or loss that had been recognised
significantly since initial recognition, the Group measures in other comprehensive income and accumulated in
the loss allowance for that financial instrument at an equity is recognised in consolidated statement of profit
amount equal to 12-month expected credit losses.12- and loss if such gain or loss would have otherwise been
month expected credit losses are portion of the life-time recognised in consolidated statement of profit and loss
expected credit losses and represent the lifetime cash on disposal of that financial asset.
shortfalls that will result if default occurs within the 12
months after the reporting date and thus, are not cash On de-recognition of a financial asset other than in
shortfalls that are predicted over the next 12 months. its entirety (e.g. when the Group retains an option
to repurchase part of a transferred asset), the Group
If the group measured loss allowance for a financial allocates the previous carrying amount of the financial
instrument at lifetime expected credit loss model in the asset between the part it continues to recognise under
previous period, but determines at the end of a reporting continuing involvement, and the part it no longer
period that the credit risk has not increased significantly recognises on the basis of the relative fair values of
since initial recognition due to improvement in credit those parts on the date of the transfer. The difference

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Overview Leadership Report Discussion and Analysis Reports Statements

between the carrying amount allocated to the part • it has been incurred principally for the purpose of
that is no longer recognised and the sum of the repurchasing it in the near term; or
consideration received for the part no longer recognised
and any cumulative gain or loss allocated to it that • on initial recognition it is part of a portfolio of
had been recognised in other comprehensive income identified financial instruments that the Group
is recognised in consolidated statement of profit and manages together and has a recent actual pattern
loss if such gain or loss would have otherwise been of short-term profit-taking; or
recognised in consolidated statement of profit and loss
• it is a derivative that is not designated and
on disposal of that financial asset. A cumulative gain or
effective as a hedging instrument.
loss that had been recognised in other comprehensive
income is allocated between the part that continues to A financial liability other than a financial liability held
be recognised and the part that is no longer recognised for trading may be designated as at FVTPL upon initial
on the basis of the relative fair values of those parts. recognition if:
3.21.4 Foreign exchange gains and losses • such designation eliminates or significantly reduces
a measurement or recognition inconsistency that
The fair value of financial assets denominated in a
would otherwise arise; or
foreign currency is determined in that foreign currency
and translated at the spot rate at the end of each • the financial liability forms part of a group of
reporting period. financial assets or financial liabilities or both, which
is managed and its performance is evaluated on
For foreign currency denominated financial assets
a fair value basis, in accordance with the Group’s
measured at amortised cost and FVTPL, the exchange
documented risk management or investment
differences are recognised in consolidated statement
strategy, and information about the grouping is
of profit and loss except for those which are designated
as hedging instruments in hedging relationship. provided internally on that basis; or

3.22 Financial liabilities and equity instruments • it forms part of a contract containing one or more
embedded derivatives, and Ind AS 109 Financial
3.22.1 Classification as debt or equity Instruments permits the entire combined contract
to be designated as at FVTPL in accordance with
Debt and equity instruments issued by the Group are Ind AS 109 Financial Instruments.
classified as either financial liabilities or as equity in
accordance with the substance of the contractual Financial liabilities at FVTPL are stated at fair value,
arrangements and the definitions of a financial liability with any gains or losses arising on remeasurement
and an equity instrument. recognised in consolidated statement of profit and loss.

3.22.2 Equity instruments 3.22.3.2 

Financial liabilities subsequently measured at
amortised cost
An equity instrument is any contract that evidences
a residual interest in the assets of an entity after Financial liabilities that are not held-for-trading
deducting all of its liabilities. Equity instruments issued and are not designated as at FVTPL are measured at
by the Group are recognised at the proceeds received, amortised cost at the end of subsequent accounting
net of direct issue costs. periods. The carrying amounts of financial liabilities
that are subsequently measured at amortised cost are
3.22.3 Financial liabilities
determined based on the effective interest method.
All financial liabilities are subsequently measured at Interest expense that is not capitalised as part of costs
amortised cost using the effective interest method of an asset is included in the finance costs line item.
or at FVTPL. However, financial liabilities that arise
The effective interest method is a method of calculating
when a transfer of a financial asset does not qualify
the amortised cost of a financial liability and of allocating
for derecognition or when the continuing involvement
interest expense over the relevant period. The effective
approach applies, financial guarantee contracts issued
interest rate is the rate that exactly discounts estimated
by the Group, are measured in accordance with the
future cash payments (including all fees and points paid
specific accounting policies set out below:
or received that form an integral part of the effective
3.22.3.1 Financial liabilities at FVTPL interest rate, transaction costs and other premiums or
discounts) through the expected life of the financial
Financial liabilities are classified as at FVTPL when liability, or (where appropriate) a shorter period, to the
the financial liability is either held for trading or it is net carrying amount on initial recognition.
designated as at FVTPL.
In respect to the purchase of raw material by the
A financial liability is classified as held for trading if: group from certain vendors, the payments are made

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to the respective banks at the request of the vendors. subsequently remeasured to their fair value at the end
Accordingly, in compliance with the provisions of Ind of each reporting period. The resulting gain or loss is
AS 109, such payables to banks are disclosed as Trade recognised in consolidated statement of profit and loss
payables and are subsequently measured at amortised immediately unless the derivative is designated and
cost using the effective interest method. Interest borne effective as a hedging instrument, in which event the
by the group on such arrangements is disclosed as timing of the recognition in consolidated statement of
finance cost. profit and loss depends on the nature of the hedging
relationship and the nature of the hedged item.
3.22.3.3 Financial guarantee contracts
3.24 Hedge accounting
A financial guarantee contract is a contract that
requires the issuer to make specified payments to The Group designates certain hedging instruments,
reimburse the holder for a loss it incurs because a which include derivatives, embedded derivatives and
specified debtor fails to make payments when due in non-derivatives in respect of foreign currency risk, as
accordance with the terms of a debt instrument. either fair value hedges, cash flow hedges, or hedges of
net investments in foreign operations. Hedges of foreign
Financial guarantee contracts issued by the Group
exchange risk on firm commitments are accounted for
are initially measured at their fair values and, if not
as cash flow hedges.
designated as at FVTPL, are subsequently measured at:
At the inception of the hedge relationship, the entity
• the amount of loss allowance determined in
documents the relationship between the hedging
accordance with impairment requirements of Ind
instrument and the hedged item, along with its
AS 109 Financial Instruments; and
risk management objectives and its strategy for
• the amount initially recognised less, where undertaking various hedge transactions. Furthermore,
appropriate, cumulative amortisation recognised at the inception of the hedge and on an ongoing basis,
in accordance with the revenue recognition the Group documents whether the hedging instrument
policies of Ind AS 115 Revenue from Contracts with is highly effective in offsetting changes in fair values
Customers. or cash flows of the hedged item attributable to the
hedged risk.
For financial liabilities that are denominated in a foreign
currency and are measured at amortised cost at the end Fair value hedges
of each reporting period, the foreign exchange gains and
Changes in fair value of the designated portion of
losses are determined based on the amortised cost of the
derivatives that qualify as fair value hedges are
instruments and are recognised in the Other income.
recognised in profit or loss immediately, together with
The fair value of financial liabilities denominated any changes in the fair value of the hedged asset or
in a foreign currency is determined in that foreign liability that are attributable to the hedged risk. The
currency and translated at the spot rate at the end change in the fair value of the designated portion of
of the reporting period. For financial liabilities that hedging instrument and the change in fair value of
are measured as at FVTPL, the foreign exchange the hedged item attributable to the hedged risk are
component forms part of the fair value gains or losses recognised in the consolidated statement of profit
and is recognised in consolidated statement of profit and loss in the line item relating to the hedged item.
and loss. Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised,
3.22.3.4 Derecognition of financial liabilities or when it no longer qualifies for hedge accounting. The
fair value adjustment to the carrying amount of the
The Group derecognises financial liabilities when, and
hedged item arising from the hedged risk is amortised
only when, the Group’s obligations are discharged,
to profit or loss from that date.
cancelled or they expire. The difference between the
carrying amount of the financial liability derecognised Cash flow hedges
and the consideration paid and payable is recognised in
consolidated statement of profit and loss. The effective portion of changes in the fair value of
derivatives that are designated and qualify as cash
3.23 Derivative financial instruments flow hedges is recognised in other comprehensive
The Group enters into a variety of derivative financial income and accumulated under the heading of cash
instruments to manage its exposure to interest rate and flow hedging reserve. The gain or loss relating to
foreign exchange rate risks, including foreign exchange the ineffective portion is recognised immediately
forward contracts, options and cross currency swaps. in consolidated statement of profit and loss and is
included in the ‘Other income’/’Other expense’ line item.
Derivatives are initially recognised at fair value at the Amounts previously recognised in other comprehensive
date the derivative contracts are entered into and are income and accumulated in equity relating to (effective

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portion as described above) are reclassified to Hedge accounting is discontinued when the hedging
consolidated statement of profit and loss in the periods instrument expires or is sold, terminated, or exercised,
when the hedged item affects profit or loss, in the same or when it no longer qualifies for hedge accounting. Any
line as the recognised hedged item. However, when the gain or loss recognised in other comprehensive income
hedged forecast transaction results in the recognition and accumulated in equity at that time remains in
of a non-financial asset or a non-financial liability, such equity and is recognised when the forecast transaction
gains and losses are transferred from equity (but not as is ultimately recognised in consolidated statement
a reclassification adjustment) and included in the initial of profit and loss. When a forecast transaction is no
measurement of the cost of the non -financial asset or longer expected to occur, the gain or loss accumulated
non-financial liability. in equity is recognised immediately in consolidated
statement of profit and loss.
In cases where the designated hedging instruments are
options and forward contracts, the Group has an option, 3.25 Goodwill
for each designation, to designate on an instrument
only the changes in intrinsic value of the options and Goodwill arising on an acquisition of a business is
spot element of forward contracts respectively as carried at cost as established at the date of acquisition
hedges. In such cases, the time value of the options is of the business less accumulated impairment losses, if
accounted based on the type of hedged item which any. For the purposes of impairment testing, goodwill is
those options hedge. allocated to each of the Group’s cash –generating units
(or groups of cash-generating units). A cash-generating
In case of transaction related hedged item in the unit to which goodwill has been allocated is tested for
above cases, the change in time value of the options is impairment annually, or more frequently when there
recognised in other comprehensive income to the extent is an indication that the unit may be impaired. If the
it relates to the hedged item and accumulated in a recoverable amount of the cash-generating unit is
separate component of equity i.e., Reserve for time value less than its carrying amount, the impairment loss is
of options and forward elements of forward contracts allocated first to reduce the carrying amount of any
in hedging relationship. This separate component is goodwill allocated to the unit and then to the other
removed and directly included in the initial cost or other assets of the unit pro rata based on the carrying
carrying amount of the asset or the liability (i.e., not as amount of each asset in the unit. Any impairment
a reclassification adjustment thus not affecting other loss for goodwill is recognised directly in consolidated
comprehensive income) if the hedged item subsequently statement of profit and loss. An impairment loss
results in recognition of a non-financial asset or a recognised for goodwill is not reversed in subsequent
non-financial liability. In other cases, the amount periods. On disposal of the relevant cash-generating
accumulated is reclassified to consolidated statement unit, the attributable amount of goodwill is included in
of profit and loss as a reclassification adjustment in the the determination of the profit or loss on disposal.
same period in which the hedged expected future cash
flows affect profit or loss. 3.26 Cash and cash equivalents

In case of time-period related hedged item in the Cash comprises cash on hand and demand deposits
above cases, the change in time value of the options with banks. Cash equivalents are short-term balances
is recognised in other comprehensive income to the (with an original maturity of three months or less from
extent it relates to the hedged item and accumulated the date of acquisition) that are readily convertible
in a separate component of equity i.e., Reserve for into known amounts of cash and which are subject to
time value of options and forward elements of forward insignificant risk of changes in value.
contracts in hedging relationship. The time value of
For the purpose of the statement of cash flows, cash
options at the date of designation of the options in the
and cash equivalents consist of cash and short-term
hedging relationships is amortised on a systematic and
balances, as defined above, net of outstanding cash
rational basis over the period during which the options’
credits as they are considered an integral part of the
intrinsic value could affect profit or loss. This is done as
Groups’s cash management. The cash flow statement is
a reclassification adjustment and hence affects other
prepared using indirect method.
comprehensive income.
3.27 Rounding off amounts
In cases where only the spot element of the forward
contracts is designated in a hedging relationship All amounts disclosed in the consolidated financial
and the forward element of the forward contract is statements and notes have been rounded off to the
not designated, the Group makes the choice for each nearest millions as per the requirements of Schedule III
designation whether to recognise the changes in of the Act unless otherwise stated.
forward element of fair value of the forward contracts
in profit or loss or to account for this element similar to
the time value of an option.

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 Apollo Tyres Ltd
Annual Report 2022-23

3.28 Critical accounting judgements and key sources of All assumptions, expectations and forecasts that are used
estimation uncertainty as a basis for judgments and estimates in the consolidated
financial statements represent as accurately an outlook
The preparation of financial statements in conformity as possible for the group. These judgments and estimates
with Ind AS requires management to make certain only represent interpretation of the Group as of the dates
judgments and estimates that may effect the on which they were prepared.
application of accounting policies, reported amounts
and related disclosures. Important judgments and estimates relate largely to
provisions, pensions, tangible and intangible assets
These judgments and estimates may have an impact on (lives, residual values and impairment), deferred tax
the assets and liabilities, disclosure of contingent liabilities assets (including MAT Credit) and liabilities, Sales
at the date of the financial statements and income and related obligations covering discounts and incentive
expense items for the period under review. Actual results schemes, contingencies in relation tax litigation
may differ from these judgments and estimates. matters and valuation of financial instruments.

332
 Overview

B. NOTES
Forming Part of the Consolidated Financial Statements
Corporate

B1 PROPERTY, PLANT AND EQUIPMENT AND OTHER INTANGIBLE ASSETS AS AT MARCH 31, 2023
H Million
GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK
Effect of Depreciation Eliminated Effect of
Description of assets As at As at As at As at As at As at
Disposals/ foreign / on disposal Impairment foreign
April 1, Additions March 31, April 1, March 31, March 31, March 31,
From our

Adjustments currency amortisation of assets/ reversal # currency

Leadership

2022 2023 2022 2023 2023 2022

translation expense Adjustments translation
A.  Property, plant and
equipment - owned unless
otherwise stated
Freehold land 2,797.97 528.30 - 112.33 3,438.60 - - - - - - 3,438.60 2,797.97
Buildings 39,085.67 1,224.30 22.93 604.11 40,891.15 9,343.22 1,211.14 7.23 - 228.56 10,775.69 30,115.46 29,742.45
Report

Plant and equipment * 200,416.15 6,997.44 8,181.57 3,111.82 202,343.84 81,879.61 8,409.56 8,173.44 (141.10) 2,169.40 84,144.03 118,199.81 118,536.54
Electrical installations 7,223.79 521.19 11.27 90.98 7,824.69 2,613.86 436.95 11.27 - 24.94 3,064.48 4,760.21 4,609.93
Furniture and fixtures 4,009.30 337.28 12.78 67.55 4,401.35 2,973.34 273.66 12.75 - 57.95 3,292.20 1,109.15 1,035.96
ESG Performance

Vehicles 1,536.83 246.02 207.38 23.71 1,599.18 768.96 162.41 129.10 - 23.31 825.58 773.60 767.87
Office equipment 1,871.24 246.85 1.82 60.24 2,176.51 1,458.95 211.05 1.33 - 48.68 1,717.35 459.16 412.29
Total tangible assets 256,940.95 10,101.38 8,437.75 4,070.74 262,675.32 99,037.94 10,704.77 8,335.12 (141.10) 2,552.84 103,819.33 158,855.99 157,903.01
B. Other intangible assets
Computer software 5,704.87 389.36 - 220.20 6,314.43 4,313.50 396.11 - - 206.38 4,915.99 1,398.44 1,391.37
Trademarks 2,260.56 - - 137.66 2,398.22 47.68 0.36 - - 1.86 49.90 2,348.32 2,212.88
Capitalised development 8,141.20 539.98 - 485.19 9,166.37 4,722.80 833.75 - - 341.03 5,897.58 3,268.79 3,418.40
Management

Other intangibles 363.59 - - 21.94 385.53 13.43 - - - 0.82 14.25 371.28 350.16
Total other intangible assets 16,470.22 929.34 - 864.99 18,264.55 9,097.41 1,230.22 - - 550.09 10,877.72 7,386.83 7,372.81
Discussion and Analysis

Total (A + B) 273,411.17 11,030.72 8,437.75 4,935.73 280,939.87 108,135.35 11,934.99 8,335.12 (141.10) 3,102.93 114,697.05 166,242.82 165,275.82
Reports
Statutory
Financial
Statements

333
 B1 PROPERTY, PLANT AND EQUIPMENT AND OTHER INTANGIBLE ASSETS AS AT MARCH 31, 2022

334
H Million
GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK
Effect of Eliminated Effect of
Description of assets As at As at As at Depreciation / As at As at As at
Disposals/ foreign on disposal Impairment foreign
April 1, Additions March 31, April 1, amortisation March 31, March 31, March 31,
Adjustments currency of assets/ reversal currency
2021 2022 2021 expense 2022 2022 2021
translation Adjustments translation
A. 
Property, plant and
equipment - owned
unless otherwise stated
Freehold land 2,747.85 107.24 - (57.12) 2,797.97 - - - - - - 2,797.97 2,747.85
Buildings 37,061.02 2,595.21 117.15 (453.41) 39,085.67 8,265.61 1,198.16 20.55 - (100.00) 9,343.22 29,742.45 28,795.41
Plant and equipment * 182,333.35 20,798.98 722.65 (1,993.53) 200,416.15 75,523.88 8,052.74 654.96 - (1,042.05) 81,879.61 118,536.54 106,809.47
Electrical installations 6,766.85 569.16 1.05 (111.17) 7,223.79 2,204.55 429.34 1.05 - (18.98) 2,613.86 4,609.93 4,562.30
Furniture and fixtures 3,665.99 382.44 13.78 (25.35) 4,009.30 2,641.48 368.51 13.78 - (22.87) 2,973.34 1,035.96 1,024.51
Vehicles 1,347.82 365.15 168.43 (7.71) 1,536.83 757.07 144.82 125.92 - (7.01) 768.96 767.87 590.75
Office equipment 1,833.72 71.18 13.71 (19.95) 1,871.24 1,291.13 196.06 12.00 - (16.24) 1,458.95 412.29 542.59
Total tangible assets 235,756.60 24,889.36 1,036.77 (2,668.24) 256,940.95 90,683.72 10,389.63 828.26 - (1,207.15) 99,037.94 157,903.01 145,072.88
B. Other intangible assets
Computer software 5,175.36 627.38 1.61 (96.26) 5,704.87 3,997.32 387.32 1.61 - (69.53) 4,313.50 1,391.37 1,178.04
Trademarks 2,304.85 - - (44.29) 2,260.56 47.93 0.38 - - (0.63) 47.68 2,212.88 2,256.92
Capitalised development 8,537.27 465.02 669.88 (191.21) 8,141.20 4,685.05 813.88 669.86 - (106.27) 4,722.80 3,418.40 3,852.22
Other intangibles 371.27 - - (7.68) 363.59 13.72 - - - (0.29) 13.43 350.16 357.55
Total other intangible 16,388.75 1,092.40 671.49 (339.44) 16,470.22 8,744.02 1,201.58 671.47 - (176.72) 9,097.41 7,372.81 7,644.73
assets
Total (A + B) 252,145.35 25,981.76 1,708.26 (3,007.68) 273,411.17 99,427.74 11,591.21 1,499.73 - (1,383.87) 108,135.35 165,275.82 152,717.61

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Property, plant and equipment 10,704.77 10,389.63
Right of use assets (refer note C4) 2,256.43 2,405.52
Other intangible assets 1,230.22 1,201.58
Total 14,191.42 13,996.73

*Plant and equipment include jointly owned assets with gross book value of J 311.28 Million (H 311.28 Million) and net book value of J 188.01 Million (H 200.55 Million) which
represents 50% ownership in those assets.
#Refer note C28

(a) Includes borrowing cost capitalised to the extent of J 214.50 Million (H 442.12 Million) including J 116.95 Million (Nil) capitalised from CWIP of previous year.
(b) Buildings include buildings constructed on leasehold land with gross book value of J 13,974.22 Million (H 13,488.13 Million) and net book value of J 9,334.21 Million (H 9,325.27
Million).
(c) Refer note B15(a) for details on pledges and securities.
(d) Freehold land includes land of J 528.30 Million (H Nil) acquired through the agreement to sale and is in the process of getting the title deeds transferred to its name.
Annual Report 2022-23
Apollo Tyres Ltd
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

FINANCIAL ASSETS (NON-CURRENT)

B2 INVESTMENT IN ASSOCIATE / JOINT VENTURE
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Accounted for using the equity method)
Unquoted investments
(a) Investment in associate:
 3,334 (3,334) equity shares of J 10 each in KT Telematic Solutions Private 49.82 48.03
Limited - fully paid up *
(b) Investment in joint venture:
9,550 (9,550) units in Pan Aridus LLC, fully impaired - -
49.82 48.03
*includes Company's cumulative share in profit of J 4.81 Million (H 3.02 Million)

B3 OTHER INVESTMENTS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(At fair value through profit and loss)
Other companies:
A Quoted Investments *
Investment in equity instruments: 2.06 2.36
16,394 (16,394) equity shares of H 10 each in Bharat Gears Limited - fully paid up 2.06 2.36
B Unquoted investments **
i Investment in equity instruments / preferred stock:
 312,000 (312,000) equity shares of H 10 each in Green Infra Wind Power 3.12 3.12
Projects Limited - fully paid up
 2,256,000 (2,256,000) equity shares of H 30 each in Suryadev Alloys and 67.68 67.68
Power Private Limited - fully paid up
 406,700 (217,100) equity shares of H 11.50 each in OPG Power Generation 4.68 2.50
Private Limited - fully paid up
 49,358 (49,358) Series C preferred stock of USD 0.0001 each in Visby 73.75 73.75
Medical, Inc (Earlier known as Click Diagnostics, Inc)
149.23 147.05
ii Other investments
Investment in MHA Capital LP - Series OL 109.13 109.13
Investment in Output Industries Limited 30.52 -
139.65 109.13
Investments carried at fair value through profit and loss (FVTPL) 290.94 258.54
* Aggregate amount of quoted investments at market value 2.06 2.36
** Aggregate amount of unquoted investments at FVTPL 288.88 256.18

B4 OTHER FINANCIAL ASSETS

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Unsecured, considered good and measured at amortised cost unless
otherwise stated)
Employee advances 14.94 22.98
Security deposits 925.92 760.10
Security deposits to related parties (refer note C18) 321.40 315.76
Investment promotion subsidy receivable (refer note C10(a)) 1,961.13 1,831.66
Derivative assets measured at fair value (refer note C9) 892.35 1,054.60
4,115.74 3,985.10

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Annual Report 2022-23

NON-FINANCIAL ASSETS (NON-CURRENT)

B5 OTHER NON-CURRENT ASSETS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Unsecured, considered good unless otherwise stated)
Capital advances 683.04 461.36
Capital advances to related parties (refer note C18) - 194.27
Balance with statutory authorities 5.86 2.58
Pension asset (refer note C11) 56.53 33.01
Advance tax (net) 29.22 223.74
Others - 0.99
774.65 915.95

CURRENT ASSETS
B6 INVENTORIES (refer note C2)
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(valued at lower of cost and net realizable value)
(i) Raw materials
- In hand 8,575.08 9,843.03
- In transit 2,915.95 3,171.57
11,491.03 13,014.60
(ii) Work-in-progress 2,427.76 2,465.50
(iii) Finished goods
- In hand 18,648.71 13,863.27
- In transit 1,464.86 1,804.18
20,113.57 15,667.45
(iv) Stock-in-trade
- In hand 6,775.53 5,147.35
- In transit 609.42 2,743.79
7,384.95 7,891.14
(v) Stores and spares 2,867.31 2,515.17
44,284.62 41,553.86

FINANCIAL ASSETS (CURRENT)

B7 INVESTMENTS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
At fair value through profit and loss:
Quoted investments
Investment in mutual funds 4,016.94 4,506.06
4,016.94 4,506.06

Number of Amount in Number of Amount in

Mutual Funds
Units (J Million) Units (J Million)
Aditya Birla Sun Life Overnight Fund - Growth Direct 415,692.95 504.01 435,319.86 500.48
Plan
Axis Overnight Fund - Direct Growth - ONDG 424,618.12 503.41 445,290.88 500.44
Kotak Overnight Fund - Direct Growth 420,524.72 502.86 442,051.36 501.20
HDFC Overnight Fund - Direct Plan Growth Option - - 158,363.19 500.02
ICICI Prudential Overnight Fund - Direct Plan 414,343.91 500.73 4,365,688.39 500.34
Growth
IDFC Overnight Fund - Direct Plan Growth - - 441,380.74 500.43
Nippon India Overnight Fund - Direct Growth Plan 4,176,122.59 502.66 4,404,201.29 502.60

336
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

B7 INVESTMENTS (Contd.)
Number of Amount in Number of Amount in
Mutual Funds
Units (J Million) Units (J Million)
SBI Overnight Fund Direct Growth 137,282.02 500.98 144,486.08 500.12
UTI Overnight Fund - Direct Growth Plan 163,051.58 500.35 171,971.79 500.43
Bandhan Overnight Fund Direct Plan-Growth 419,831.26 501.94 - -
6,571,467.15 4,016.94 11,008,753.58 4,506.06
Aggregate amount of quoted investments at 4,016.94 4,506.06
market value

B8 TRADE RECEIVABLES (refer note C24)

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Unsecured and measured at amortised cost unless otherwise stated)
Trade receivables considered good * 24,885.34 20,512.92
Trade receivables which have significant increase in credit risk 866.10 858.62
25,751.44 21,371.54
Provision for loss allowance (refer note C8) (866.10) (858.62)
24,885.34 20,512.92
* includes balances with related parties (refer note C18)

The Group has derecognised trade receivables amounting to J 785.28 million (H 858.30 million) as it had transferred the
contractual right and substantially transferred all risks and rewards of ownership of these receivables to financial institution.

B9 CASH AND CASH EQUIVALENTS

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(i) Balances with banks:
Current accounts 5,628.28 7,313.23
Other deposit accounts
- original maturity of 3 months or less 1,385.50 375.90
(ii) Cheques on hand / remittances in transit 1,340.31 1,010.08
(iii) Cash on hand 6.02 7.15
8,360.11 8,706.36

B10 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Unpaid dividend accounts* 102.20 100.19
Deposits with maturity exceeding 3 months but less than 12 months 0.01 2,000.01
102.21 2,100.20
* These balances are not available for use by the Company and corresponding balance is disclosed as unclaimed dividend in note B20.

B11 OTHER FINANCIAL ASSETS

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Unsecured, considered good and measured at amortised cost unless
otherwise stated)
Employee advances 139.98 146.11
Other recoverables from related parties (refer note C18) 252.52 315.05
Derivative assets measured at fair value (refer note C9) 278.25 87.29
Security deposits 52.95 43.92
Interest accrued on deposits 0.73 75.10
Investment promotion subsidy receivable (refer note C10(a)) 1,181.75 1,181.02
Others 116.46 189.85
2,022.64 2,038.34

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Annual Report 2022-23

NON-FINANCIAL ASSETS (CURRENT)

B12 OTHER CURRENT ASSETS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Unsecured, considered good unless otherwise stated)
Trade advances- considered good 585.43 375.83
Doubtful advances 20.56 20.56
Provision for doubtful advances (20.56) (20.56)
585.43 375.83
Export obligations - advance licence benefit 471.47 481.35
Export incentives recoverable 16.42 120.54
Balance with statutory authorities 2,690.79 1,746.04
Gratuity (refer note C11) 299.24 32.57
Prepaid expenses 851.84 935.56
4,915.19 3,691.89

B13 SHARE CAPITAL

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(a) Authorised
750,000,000 Nos. (750,000,000 Nos.) equity shares of H 1 each 750.00 750.00
150,000,000 Nos. (150,000,000 Nos.) cumulative redeemable preference 15,000.00 15,000.00
shares of H100 each
15,750.00 15,750.00
(b) Issued, subscribed, called and fully paid up
Equity shares of J 1 each:
635,100,946 Nos. (635,100,946 Nos.) equity shares 635.10 635.10
635.10 635.10

(c) Reconciliation of the number of equity shares and amount outstanding at the beginning and at the end of the year
As at March 31, 2023 As at March 31, 2022
Particulars Number of Amount Number of Amount
shares (J Million) shares (J Million)
Opening balance 635,100,946 635.10 635,100,946 635.10
Add: Issued during the year - - - -
Closing balance 635,100,946 635.10 635,100,946 635.10

(d) Details of shareholders holding more than 5% of the paid up equity share capital of the Company with voting rights
As at March 31, 2023 As at March 31, 2022
Name of the shareholder
Number of shares %age Number of shares %age
Sunrays Properties and Investment 125,613,324 19.78% 126,593,324 19.93%
Company Private Limited
Emerald Sage Investment Ltd. 63,050,966 9.93% 63,050,966 9.93%
White IRIS Investment Ltd. 51,054,445 8.04% 51,054,445 8.04%
HDFC Trustee Company Ltd. - A/C its 54,807,540 8.63% 52,765,288 8.31%
various Fund
Osiatic Consultants & Investments - - 39,041,880 6.15%
Pvt.Ltd.
Apollo Finance Limited 76,570,752 12.06% 37,528,872 5.91%

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 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

B13 SHARE CAPITAL (Contd.)

(e) Shares held by promoters at the end of the year

As at March 31, 2023 As at March 31, 2022

% change % change
S. during the year during the year
Promoters % of % of
No. Number of (wrt total Number of (wrt total
total total
shares shares as at the shares shares as at the
shares shares
beginning of beginning of
the year) the year)
1 Onkar Kanwar 100,000 0.02% 0.00% 100,000 0.02% 0.00%
2 Raaja R S Kanwar 200,880 0.03% 0.00% 200,880 0.03% 0.00%
3 Taru Kanwar 12,250 0.00% 0.00% 12,250 0.00% 0.00%
4 Sunrays Properties 125,613,324 19.78% -0.15% 126,593,324 19.93% -0.28%
and Investment
Company Private
Limited
5 Osiatic Consultants & - 0.00% -6.15% 39,041,880 6.15% 0.00%
Investments Pvt.Ltd.
6 Apollo Finance 76,570,752 12.06% 6.15% 37,528,872 5.91% 0.00%
Limited
7 Classic Industries & 18,696,005 2.94% 0.12% 17,903,505 2.82% -0.04%
Exports Ltd.
8 PTL Enterprises Ltd. 10,745,232 1.69% 0.03% 10,557,732 1.66% 0.36%
9 Amit Dyechem Pvt. Ltd. 1,574,595 0.25% 0.00% 1,574,595 0.25% 0.00%
10 Apollo International 984,485 0.16% 0.00% 984,485 0.16% 0.00%
Ltd.
11 Global Capital Ltd. 1,000 0.00% 0.00% 1,000 0.00% 0.00%
12 Shalini Kanwar Chand 1,977,000 0.31% 0.00% 1,977,000 0.31% 0.00%
13 Neeraj Kanwar 671,380 0.11% 0.00% 671,380 0.11% 0.00%
14 Simran Kanwar 18,500 0.00% 0.00% 18,500 0.00% 0.00%
237,165,403 37.34% 0.00 237,165,403 37.34% 0.03%

(f) The rights, preferences and restrictions attached to equity shares of the Company

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

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.

(g) Over the period of five years immediately preceding March 31, 2023 and March 31, 2022, neither any bonus shares were issued
nor any shares were allotted for consideration other than cash. Further, no shares were bought back during the said period.

B14 OTHER EQUITY

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Securities premium 31,317.67 31,317.67
General reserve 17,006.63 17,006.63
Capital reserve on consolidation 2,664.95 2,664.95
Capital reserve on AMHPL merger 1,383.68 1,383.68
Debenture redemption reserve 1,039.50 1,039.50
Capital subsidy 25.50 25.50
Capital redemption reserve 44.40 44.40
Capital reserve on forfeiture of shares 0.07 0.07
Retained earnings 76,375.94 67,150.01
Effective portion of cash flow hedge 42.47 1.16
Revaluation surplus 31.22 31.22
Foreign currency translation reserve (1,789.30) (3,778.57)
Total other equity 128,142.73 116,886.22

Refer Note C7 - Description of nature and purpose of each reserve

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Annual Report 2022-23

NON - CURRENT LIABILITIES

FINANCIAL LIABILITIES
B15 BORROWINGS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
At amortised cost
Secured *
(i) Debentures 17,226.44 17,122.07
(ii) Term loans
From banks:
External commercial borrowings (ECB) 2,596.05 4,785.93
Rupee term loans 11,905.30 13,376.14
Euro term loans 6,150.31 8,774.64
(iii) Deferred payment liabilities:
Deferred payment credit 20.34 25.96
37,898.44 44,084.74
*For details regarding repayment terms, interest rate and nature of security on non-current borrowings (refer note B15(a)).

NOTE B15(a)
Non-convertible debentures
Amount outstanding as at Amount outstanding as at
March 31, 2023 (J Million) March 31, 2022 (J Million) Rate of Details of
Particulars Non- Current maturities Non- Current maturities interest Terms of repayment security
current of non current current of non current per annum offered
borrowings borrowings borrowings borrowings
1,150 - 8.65% Non-convertible 1,150.00 - 1,150.00 - 8.65% Bullet payment on Refer note
debentures of April 30, 2026 A below
H 1 Million each
1,050 - 8.65% Non- 1,050.00 - 1,050.00 - 8.65% Bullet payment on Refer note
convertible debentures of April 30, 2025 A below
H 1 Million each
1,050 - 8.65% Non- 1,050.00 - 1,050.00 - 8.65% Bullet payment on Refer note
convertible debentures of April 30, 2024 A below
H 1 Million each
1,500 - 7.80% Non- 1,499.18 - 1,499.14 - 7.80% Bullet payment on Refer note
convertible debentures of April 30, 2024 A below
H 1 Million each
900 - 7.50% Non- - 900.00 900.00 - 7.50% Bullet payment on Refer note
convertible debentures of October 20, 2023 A below
H 1 Million each
1,500 - 7.80% Non- - 1,499.89 1,499.14 - 7.80% Bullet payment on Refer note
convertible debentures of April 28, 2023 A below
H 1 Million each
1,050 - 7.50% Non- - - - 1,050.00 7.50% Bullet payment on Refer note
convertible debentures of October 21, 2022 A below
H 1 Million each
1,500 - 7.80% Non- - - - 1,499.14 7.80% Bullet payment on Refer note
convertible debentures of April 29, 2022 A below
H 1 Million each
5,000 - 8.75% Non 4,986.84 - 4,984.96 - 8.75% Bullet payment on Refer note
convertible debentures of April 09, 2030 A below *
H 1 Million each
5,000 - 7.70% Non 4,992.89 - 4,988.83 - 7.70% H 1,250 Million payable Refer note
convertible debentures of on May 17, 2024 and A below
H 1 Million each H 3,750 Million payable
on May 16, 2025.
2,500 - 6.93 % Non - 2,498.11 - - 6.93% Bullet payment on Refer note
Convertible Debentures of December 31, 2023 A below
H 1 Million each
2,500 - 7.53 % Non 2,497.53 - - - 7.53% Bullet payment on Refer note
Convertible Debentures of September 13, 2027 A below
H 1 Million each
Total 17,226.44 4,898.00 17,122.07 2,549.14

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NOTE B15(a) (Contd.)

External commercial borrowings (ECB) from banks
Amount outstanding as at Amount outstanding as at
March 31, 2023 (J Million) March 31, 2022 (J Million) Rate of Details of
Particulars Non- Current maturities Non- Current maturities interest Terms of repayment security
current of non current current of non current per annum offered
borrowings borrowings borrowings borrowings
ECB I 683.11 684.79 1,259.84 631.65 0-1% above 3 Equal annual instalments Refer note
USD-LIBOR starting from FY 2022-23 A below
ECB II 683.47 684.79 1,259.30 631.58 0.25-1.25% 3 Equal annual instalments Refer note
above USD- starting from FY 2022-23 A below
LIBOR
ECB III 683.16 684.79 1,259.62 631.65 0-1% above 3 Equal annual instalments Refer note
USD-LIBOR starting from FY 2022-23 A below
ECB IV 546.31 547.83 1,007.17 505.32 0.25-1.25% 3 Equal annual instalments Refer note
above USD- starting from FY 2022-23 A below
LIBOR
Total 2,596.05 2,602.20 4,785.93 2,400.20

Foreign currency non-resident (FCNR) term loan from banks

Amount outstanding as at Amount outstanding as at
March 31, 2023 (J Million) March 31, 2022 (J Million) Rate of Details of
Particulars Non- Current maturities Non- Current maturities interest Terms of repayment security
current of non current current of non current per annum offered
borrowings borrowings borrowings borrowings
FCNR I - - - 93.58 0-1% above Repayment in 6 equal semi- Refer note
USD-LIBOR annual instalments starting A below
from December 31, 2019
FCNR II - - - 94.13 0-1% above Repayment in 6 equal semi- Refer note
USD-LIBOR annual instalments starting A below
from January 15, 2020
FCNR III - - - 291.98 0-1% above Repayment in 6 equal semi- Refer note
USD-LIBOR annual instalments starting A below
from September 30, 2020
Total - - - 479.69

Rupee term loans from banks

Amount outstanding as at Amount outstanding as at
March 31, 2023 (J Million) March 31, 2022 (J Million) Rate of Details of
Particulars Non- Current maturities Non- Current maturities interest Terms of repayment security
current of non current current of non current per annum offered
borrowings borrowings borrowings borrowings
Rupee Term - - - 149.38 0-2% above Bullet payment on June 27, Refer note
Loan I one year 2022 A below
T-bill
Rupee Term - - - 200.00 0-2% above Bullet payment on March Refer note
Loan II one year 27, 2023 A below
T-bill
Rupee Term - 249.63 250.00 - 0-2% above Bullet payment on December Refer note
Loan III one year 29, 2023 A below
T-bill
Rupee Term 8,175.05 481.25 8,638.28 265.00 5-6.5% p.a 33 structured quarterly Refer note
Loan IV instalments starting from A below
March 31, 2022
Rupee Term 3,730.25 760.00 4,487.86 500.00 6-7% p.a. 32 structured quarterly Refer note
Loan V instalments starting from A below
April 30, 2022
Total 11,905.30 1,490.88 13,376.14 1,114.38

Euro term loans from banks

Amount outstanding as at Amount outstanding as at
March 31, 2023 (J Million) March 31, 2022 (J Million) Rate of
Details of security
Particulars Non- Current maturities Non- Current maturities interest Terms of repayment
offered
current of non current current of non current per annum
borrowings borrowings borrowings borrowings
Euro term 241.54 27.77 249.00 26.26 1.95% Monthly payment till Secured by mortgage
loans I April 30, 2033 on land and building
at Hamburg, Celle &
Düsseldorf, Germany
Euro term 5,908.77 3,207.56 8,525.64 2,437.44 1.50-2.25% Repayment in 10 semi- Refer note B below
loans II above annual instalments
EURIBOR starting from
September 13, 2020
Total 6,150.31 3,235.33 8,774.64 2,463.70

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NOTE B15(a) (Contd.)

Deferred payment liabilities
Amount outstanding as at Amount outstanding as at
March 31, 2023 (J Million) March 31, 2022 (J Million) Rate of
Details of security
Particulars Non- Current maturities Non- Current maturities interest Terms of repayment
offered
current of non current current of non current per annum
borrowings borrowings borrowings borrowings
Deferred 20.34 5.62 25.96 5.20 7-8% Repayment along Wind Mills purchased
payment with interest in 240 under the deferred
credit consecutive monthly consideration payment
instalments started plan
from May 15, 2007
Total 20.34 5.62 25.96 5.20

Details of securities offered to existing lenders

Note A All the long term loans are secured by pari-passu charge on the movable fixed assets of the company.
*Along with the above mentioned security an exclusive charge on the immovable property of the Company’s
registered office in Kochi has also been created for this NCD issuance for an aggregate amount of H 5,000 Million
at 8.75% p.a.

Note B Apollo Tyres (NL) 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).

NON-FINANCIAL LIABILITIES (NON-CURRENT)

B16 PROVISIONS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(a) Provision for employee benefits
Provision for jubilee benefits (refer note C5) 137.67 117.84
Provision for pension benefits (refer note C11) 634.85 769.94
Provision for gratuity (refer note C11) 4.22 -
Provision for compensated absences (refer note C5) 1.27 -
(b) Other provisions
Provision for constructive liability (refer note C5) 241.67 282.68
Provision for sales related obligations (refer note C5) 327.55 309.13
1,347.23 1,479.59

B17 OTHER NON-CURRENT LIABILITIES

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Security deposits - others 205.63 192.68
Deferred revenue arising from government grant (refer note C10(b)&(c)) 5,370.91 6,821.35
Statutory dues payable 4,111.83 4,862.77
Others 40.60 29.42
9,728.97 11,906.22

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CURRENT LIABILITIES
FINANCIAL LIABILITIES (CURRENT)
B18 BORROWINGS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
At amortised cost
Secured
From banks:
Cash credit (refer note a) 9.76 4.18
Loans (refer note b & c) 2,096.60 2,625.30
Unsecured
From banks:
Trade financing (refer note d) 764.61 3,409.34
Credit facilities from bank (refer note e and f) 2,875.06 800.73
From others - Commercial paper - 2,000.00
Sub Total (A) 5,746.03 8,839.55
Current maturities of non-current borrowings (refer note g)
Secured
Debentures 4,898.00 2,549.14
Term loans:
Foreign currency non-resident term loans - 479.69
Euro term loans 3,235.33 2,463.70
External commercial borrowings (ECB) 2,602.20 2,400.20
Rupee Term Loans 1,490.88 1,114.38
Deferred payment liabilities:
Deferred payment credit I 5.62 5.20
Sub Total (B) 12,232.03 9,012.31
Total (A + B) 17,978.06 17,851.86

a Cash credits are repayable on demand. The interest rate on these loans are in the range of 4.00% p.a to 7.50% p.a
(3.00% p.a to 7.00% p.a.) and secured by a first charge on raw materials, work-in-progress, stocks, stores and book debts
of the Company.

b This is refinancing of term loan taken by one of the subsidiary company for one year. The interest rate on this loan is 0-1%
above Euribor and secured by Corporate Guarantee from the Company.

c Loan availed by one of the subsidiary, Reifencom Gmbh, Hannover, is secured by a first charge on stock and receivables
of Reifencom 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 + 1.50% (Euribor + 1.50%).

d These are trade financing facility availed by one of the subsidiary company. The interest rate on these loans are in the
range of 5.61% p.a to 5.66% p.a (0.70% p.a to 2.01% p.a.)

e These are loans repayable on demand availed by one of the subsidiary company. The interest rate on these loans is
SOFR+1.46% p.a. (SOFR+1.46% p.a.).

f These are loans repayable on demand availed by one of the subsidiary company. The interest rate on these loans is
Euribor + 1.50% (Euribor + 1.50%).

g For details regarding repayment terms, interest rate and nature of security on current maturities of non-current
borrowings (refer note B15(a)).

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B19 TRADE PAYABLES (refer note C23) *

(Measured At Amortised Cost)
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Total outstanding dues of micro enterprises and small enterprises 306.28 337.63
Total outstanding dues of creditors other than micro enterprises and small enterprises
Trade payables 30,555.97 31,778.76
Employee related payable 2,236.72 2,669.40
Payable to related parties (refer note C18) 439.53 523.66
33,232.22 34,971.82
 rade payables include commission on net profits payable to whole-time directors J 341.90 Million (H 35.94 Million) and non-executive directors J 50.00 Million
* T
(H 38.00 Million).

B20 OTHER FINANCIAL LIABILITIES

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
(Measured at amortised cost unless otherwise stated)
Interest accrued but not due on borrowings 1,454.04 1,441.59
Unclaimed dividends # 102.20 100.19
Accounts payable - capital 1,979.17 2,752.96
Payable to micro, small and medium enterprises - capital 57.68 121.08
Interest payable to micro, small & medium enterprises 10.58 10.58
Payable to related parties (refer note C18) 129.14 141.62
Security deposits 619.53 424.37
Derivative liabilities measured at fair value (refer note C9) 55.91 36.05
4,408.25 5,028.44

# Includes J 7.94 Million (H 5.70 Million) which has not been transferred to the Investor Education and Protection Fund under Section 124 of the Companies Act,
2013, as per the orders/ instructions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992.

B21 OTHER CURRENT LIABILITIES

NON-FINANCIAL LIABILITIES (CURRENT)
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Statutory dues payable 6,256.00 4,307.27
Deferred revenue arising from government grant (refer note C10(b)) 1,469.00 2,235.65
Advances received / credit balance from customers (refer note C24) 10,927.92 10,891.23
Others 140.87 290.87
18,793.79 17,725.02

B22 PROVISIONS
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Provision for compensated absences (refer note C5) 324.40 305.73
Provision for superannuation (refer note C5) 38.91 40.16
Provision for gratuity (refer note C11) 0.86 -
Provision for constructive liability (refer note C5) 75.54 49.68
Provision for contingencies (refer note C5) 425.00 425.00
Provision for sales related obligations (refer note C5) 1,279.93 1,184.31
2,144.64 2,004.88

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B23 CURRENT TAX LIABILITIES (NET) (refer note C6)

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Current tax liabilities (net) 1,053.60 860.41

B24 OTHER OPERATING INCOME

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Investment promotion subsidy (refer note C10(a)) 1,106.04 1,211.52
Unwinding of deferred income (refer note C10(b)) 2,266.57 1,540.68
Scrap sales 580.83 517.97
Provisions / liabilities no longer required written back 204.59 33.62
Subsidy income - others (refer note C10(c)) 160.21 183.29
Others 139.82 180.56
4,458.06 3,667.64

B25 OTHER INCOME

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
(a) Interest income:
- Bank deposits 41.05 212.48
- Others* 216.03 190.50
(b) Gain from current investments - fair value through profit and loss
- Mutual funds 55.19 24.15
(c) Others
- Profit on sale of property, plant and equipment (net) 39.89 90.22
- Gain on foreign exchange fluctuation (net) - 588.48
- Miscellaneous income 58.76 128.98
410.92 1,234.81
* This includes interest recognised on government grant (refer note C10(a))

B26 EXPENSES
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
B26A Cost of materials consumed: * 122,619.59 109,554.29
B26B Purchase of stock-in-trade:
Purchase of finished goods - tyres, tubes and flaps 26,782.74 22,060.30
B26C Employee benefits expense: *
Salaries and wages 21,514.18 21,203.54
Contribution to provident and other funds (refer note C11) 2,731.14 2,708.28
Staff welfare expenses 1,953.89 1,830.55
26,199.21 25,742.37
B26D Other expenses: *
Consumption of stores and spare parts 1,590.73 1,364.89
Power and fuel 7,789.48 6,325.75
Conversion charges 900.44 995.56
Repairs and maintenance
- Machinery 996.07 791.26
- Buildings 175.62 175.40
- Others 2,662.11 2,566.54
Rent (refer note C4) 214.40 119.40
Insurance 678.74 609.56
Rates and taxes 213.55 203.09
Sitting fees to non-executive directors (refer note C18) 4.29 4.13
Commission to non-executive directors (refer note C18) 50.00 38.00

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B26 EXPENSES (Contd.)

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Loss on foreign exchange fluctuation (net) 13.73 -
Travelling, conveyance and vehicle expenses 1,809.95 1,228.19
Postage, telephone and stationery 272.75 263.93
Conference 47.60 9.55
Freight and forwarding 13,377.41 11,650.30
Commission on sales 75.47 56.63
Advertisement and sales promotion 5,054.83 4,376.24
Corporate social responsibility 132.25 187.17
Bank charges 193.84 207.40
Statutory auditor's remuneration (refer note C13) 73.36 78.17
Provision for doubtful debts / advances (refer note C8) 71.76 57.61
Legal and professional 911.51 711.06
Miscellaneous 2,665.11 2,117.54
39,975.00 34,137.37
*Includes expense towards research and development (refer note C14)

B27 FINANCE COSTS

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Interest on fixed-term loans 1,459.11 1,450.49
Interest on debentures 1,577.42 1,334.98
Interest on current loans 298.35 149.71
Interest on income taxes 260.00 109.11
Interest on lease liabilities (Refer note C4) 468.18 511.81
Interest - others 1,100.98 712.55
Other borrowing costs 148.31 175.58
5,312.35 4,444.23

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C. Other Notes
forming Part Of he Consolidated Financial Statements

1 Borrowing costs capitalized / transferred to capital work in progress during the year is J 97.55 Million (H 559.07 Million) and
the capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest
rate applicable to the Company's general borrowings during the year, in this case 6.77% p.a. (7.58% p.a).

2 INVENTORIES
i. The amount of write down of inventories to net realizable value recognised as an expense was J 336.25 Million
(H 268.95 Million).

ii. Changes in inventories of finished goods, stock-in-trade and work-in-progress is the difference between opening and
closing inventories of finished goods, stock-in-trade and work-in-progress as adjusted for exchange rate adjustment
arising on consolidation of foreign subsidiaries.

3 IMPAIRMENT TESTING OF INTANGIBLES WITH INDEFINITE LIFE

Intangibles with indefinite useful life comprises goodwill, trademarks and other intangible assets.

For the purpose of annual impairment testing, goodwill is allocated to the cash generating units expected to benefit from
the synergies of the business combinations in which the goodwill arises. The Group acquired Reifencom Gmbh Hannover
on January 1, 2016. In addition to goodwill, certain trademarks and other intangible assets were also recognized in the
consolidated financial statements which were not recorded in the separate financial statements of the acquiree. Further,
there are certain other trademarks that were acquired as part of acquisition of ATNL (Apollo Tyres (NL) B.V.).

Changes in the net carrying amount of trademarks and other intangible assets is summarized as below:
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 2,555.67 2,609.63
Foreign exchange translation impact 154.12 (53.96)
Closing balance* 2,709.79 2,555.67
*Out of the total closing balance, J1,560.45 Million (H 1,471.70 Million) pertains to acquisition of Reifencom Gmbh Hannover and J 1,149.34 Million
(H 1,083.97 Million) pertains to acquisition of ATNL.

Changes in the net carrying amount of goodwill is summarized as below:

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 2,158.07 2,203.63
Foreign exchange translation impact 130.14 (45.56)
Closing balance 2,288.21 2,158.07

Impairment
An impairment test was carried out as at March 31, 2023, details of the test are as outlined below:
Goodwill, Trademarks
Particulars Trademarks#
and Other intangibles*
Discount Rate 9.00% 10.70%
Growth Rate 1.25% 1.30%
Number of years for which cash flows were considered 5 5
Test Result No Impairment Loss No Impairment Loss

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3 IMPAIRMENT TESTING OF INTANGIBLES WITH INDEFINITE LIFE (Contd.)

An impairment test was carried out as at March 31, 2022, details of the test are as outlined below:
Goodwill, Trademarks
Particulars Trademarks# and Other
intangibles*
Discount Rate 8.20% 9.00%
Growth Rate 2.00% 2.00%
Number of years for which cash flows were considered 5 5
Test Result No Impairment Loss No Impairment Loss
# pertains to ATNL acquisition
* pertains to Reifencom Gmbh Hannover acquisition

Growth rates

The growth rates used are in line with the growth rate of the industry and the countries in which the entities operates and
are consistent with internal / external sources of information.

Discount rates

The discount rates takes into consideration market risk and specific risk factors of the cash generating unit. The cash flow
projections are based on the forecasts made by the management.

Sensitivity

The management believes that any reasonable possible changes in the key assumptions would not cause the cash
generating unit’s carrying amount to exceed its recoverable amount.

4 LEASES
i Nature of leasing activities

The Group has entered into lease arrangements for various warehouses, vehicles, plant and equipments, offices and
other assets that are renewable on a periodic basis with approval of both lessor and lessee.

ii The Group does not have any lease commitments towards variable rent as per the contract.

iii Each lease generally imposes a restriction that, unless there is a contractual right for the Group to sublet the asset
to another party, the right-of-use asset can only be used by the Company. Leases are either non-cancellable or may
only be cancelled by incurring a substantive termination fee. The Group is prohibited from selling or pledging the
underlying leased assets as security. For leases over office buildings and factory premises the Company must keep
those properties in a good state of repair and return the properties in their original condition at the end of the lease.

iv Lease liabilities are presented in the consolidated statement of financial position as follows:
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Non current 6,141.74 6,404.61
Current 2,187.06 2,267.94
Total 8,328.80 8,672.55

v Lease payments not recognised as a liability

The expense relating to payments not included in the measurement of the lease liability is as follows:
H Million
As at As at
March 31, 2023 March 31, 2022
Short term leases 117.12 27.98
Leases of low value assets 8.42 29.03
Variable lease payments 88.86 62.39
Total 214.40 119.40

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4 LEASES (Contd.)
vi Additional information on the right-of-use assets by class of assets is as follows:
H Million
Land & Plant &
Particulars Vehicles Others Total
Buildings * equipments
Gross Carrying Value
As at April 01, 2022 13,177.58 612.18 590.57 24.08 14,404.41
Additions 1,474.51 106.88 153.53 - 1,734.92
Disposals 628.64 126.21 160.32 20.13 935.30
Effect of foreign currency translation 326.17 12.34 24.71 0.20 363.42
As at March 31, 2023 14,349.62 605.19 608.49 4.15 15,567.45
Accumulated depreciation
As at April 01, 2022 5,204.22 371.88 328.35 20.62 5,925.07
Additions 1,935.32 149.13 171.33 0.65 2,256.43
Eliminated on disposal 491.31 126.21 160.32 20.13 797.97
Effect of foreign currency translation 158.87 8.50 18.08 0.14 185.59
As at March 31, 2023 6,807.10 403.30 357.44 1.28 7,569.12
Net Carrying Value
As at March 31, 2023 7,542.52 201.89 251.05 2.87 7,998.33

H Million
Land & Plant &
Particulars Vehicles Others Total
Buildings * equipments
Gross Carrying Value
As at April 01, 2021 12,283.73 529.64 628.59 13.57 13,455.53
Additions 1,386.64 158.45 170.97 4.15 1,720.21
Disposals 398.64 69.12 168.70 - 636.46
Effect of foreign currency translation (94.15) (6.79) (40.29) 6.36 (134.87)
As at March 31, 2022 13,177.58 612.18 590.57 24.08 14,404.41
Accumulated depreciation
As at April 01, 2021 3,589.62 271.58 308.56 11.32 4,181.08
Additions 2,021.48 173.05 203.91 7.08 2,405.52
Eliminated on disposal 329.01 69.12 168.70 - 566.83
Effect of foreign currency translation (77.87) (3.63) (15.42) 2.22 (94.70)
As at March 31, 2022 5,204.22 371.88 328.35 20.62 5,925.07
Net Carrying Value
As at March 31, 2022 7,973.36 240.30 262.22 3.46 8,479.34
* includes balances with related parties (refer note C18)

vii The following are the amounts recognised in the consolidated statement of profit and loss
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Depreciation expense of right-of-use assets 2,256.43 2,405.52
Interest expense on lease liabilities 468.18 511.81
Interest income on fair value of security deposit (35.03) (29.48)
Expense relating to short-term leases/ leases of low value assets/ 214.40 119.40
variable lease payments (included in other expenses)
Total 2,903.98 3,007.25

viii Total cash outflow pertaining to leases during the year ended March 31, 2023 is J 2,576.75 Million (H 2,694.07 Million).

ix Leasehold land is net of J 5.39 Million (H 5.39 Million) subleased to Classic Industries and Exports limited (formerly
known as Classic Auto Tubes Ltd.), a Company in which directors are interested since the year ended 2009-10.

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5 PROVISIONS - NON-CURRENT / CURRENT

(i) Changes in non-current provisions are as below:
H Million
Provision for Provision for Provision for Provision
Particulars compensated sales related constructive for jubilee
absences obligations * liability ** benefits #
As at March 31, 2021 - 313.63 281.18 128.42
Addition during the year - - 0.19 -
Utilisation / reversal during the year - (4.50) (3.56) (8.12)
Foreign exchange translation impact - - 4.87 (2.46)
As at March 31, 2022 - 309.13 282.68 117.84
Addition during the year 1.27 18.42 - 47.59
Utilisation / reversal during the year - - (30.10) (35.64)
Foreign exchange translation impact - - (10.91) 7.88
As at March 31, 2023 1.27 327.55 241.67 137.67

(ii) Changes in current provisions are as below:

H Million
Provision for Provision for Provision for
Provision for Provision for
Particulars compensated sales related constructive
contingencies superannuation
absences obligations * liability **
As at March 31, 2021 280.79 1,107.71 53.93 425.00 31.37
Addition during the year 259.73 1,175.12 49.68 - 152.71
Utilisation / reversal (234.27) (1,098.28) (53.93) - (143.92)
during the year
Foreign exchange (0.52) (0.24) - - -
translation impact
As at March 31, 2022 305.73 1,184.31 49.68 425.00 40.16
Addition during the year 329.37 1,269.58 75.54 - 132.40
Utilisation / reversal (313.15) (1,174.54) (49.68) - (133.65)
during the year
Foreign exchange 2.45 0.58 - - -
translation impact
As at March 31, 2023 324.40 1,279.93 75.54 425.00 38.91
* Represents estimates for payments to be made in future for sales related obligations.
** Includes post-employment benefit obligation for the employees of related party engaged by the Company at its Kalamessary plant taken on
lease 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
period of 12.5, 25 or 40 years.

6 INCOME TAXES
i) Reconciliation between average effective tax rate and applicable tax rate
For the year ended For the year ended
Particulars March 31, 2023 March 31, 2022
J Million Rate (%) J Million Rate (%)
Profit before tax 14,271.87 8,476.74
Income tax using the Company’s domestic tax rate 4,987.16 34.94 2,962.11 34.94
Tax effect of
Effect of different tax rates in foreign jurisdictions (745.89) (5.23) (651.27) (7.68)
Tax impact on carry forward losses recognised (407.70) (2.86) - -
Non deductible expenses 157.84 1.11 111.73 1.32
Others (765.90) (5.37) (331.83) (3.91)
Income tax expense recognised in the consolidated 3,225.51 22.59 2,090.74 24.67
statement of profit and loss

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6 INCOME TAXES (Contd.)

ii) Components of deferred tax liability (net)
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Tax effect of items constituting deferred tax liabilities
Depreciation and amortisation 18,407.88 17,035.78
Others 90.04 129.52
Gross deferred tax liability (a) 18,497.92 17,165.30
Tax effect of items constituting deferred tax assets
Carry forward tax losses 1,153.60 1,783.92
Minimum alternate tax entitlement 7,173.31 5,696.14
Others 577.02 671.68
Gross deferred tax asset (b) 8,903.93 8,151.74
Deferred tax liability (net) (a - b) 9,593.99 9,013.56

iii) Components of deferred tax asset (net)

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Tax effect of items constituting deferred tax assets
Carry forward tax losses 451.59 714.34
Others 267.33 330.88
Deferred tax asset (net) 718.92 1,045.22

One of the subsidiary company has net carry forward losses on which deferred tax asset has not been recognised
amounting to J 68.54 Million as at March 31, 2023 (H 256.36 Million as at March 31, 2022) which has a 15-20 years
carry forward period.

(iv) Components of deferred tax expense / (income)

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Tax effect of items constituting deferred tax liabilities
Depreciation and amortisation 1,364.35 2,034.38
Others (19.73) 7.36
Sub-total (a) 1,344.62 2,041.74
Tax effect of items constituting deferred tax assets
Carry forward tax losses (938.24) 340.24
Minimum alternate tax (MAT) entitlement 1,477.17 611.60
Others 87.11 (52.88)
Sub-total (b) 626.04 898.96
Total (a - b) 718.58 1,142.78

(v) The movement in net deferred tax liability / (assets) is as follows:

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Net deferred tax liability / (assets) at the beginning of the year 7,968.34 7,020.15
Deferred tax expense / (income) recognised in the consolidated 718.58 1,142.78
statement of profit and loss
Deferred tax expense / (income) recognised in other comprehensive 107.43 56.68
income
Foreign exchange translation impact 80.72 (251.27)
Net deferred tax liability / (assets) at the end of the year 8,875.07 7,968.34

vi) The group has concluded that the deferred tax assets including assets on carry forward of losses and MAT
entitlement will be fully recoverable using the estimated future taxable income based on the approved business
plans and budgets for the Company / subsidiary companies.

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7 
DESCRIPTION OF NATURE AND PURPOSE vii. Capital redemption reserve
OF EACH RESERVE
This balance has been created in accordance with
i. Securities premium reserve
provision of the Act for the buy back of equity
Securities premium reserve is used to record the shares from the market.
premium on issue of shares. The reserve will be viii. Capital reserve on forfeiture of shares
utilised in accordance with provisions of the Act.
ii. General reserve This reserve was created on forfeiture of shares by
the Company. The reserve is not available for the
General reserve is created from time to time by distribution to the shareholders.
way of transfer of profits from retained earnings for
ix. Retained earnings
appropriation purpose. General reserve is created by
transfer from one component of equity to another Retained earnings are created from the profit of
and is not an item of other comprehensive income.
the Group, as adjusted for distribution to owners,
iii. Capital reserve on consolidation transfer to other reserve, remeasurement of
This balance represents excess of net assets of defined benefit plans etc.
Apollo Tyres (NL) B.V. (ATNL) acquired at fair value x. Cash flow hedge
over the purchase consideration.
It represents mark-to-market valuation of effective
iv. Capital reserve on Apollo (Mauritius) Holdings
Private Limited ("AMHPL") merger hedges as required by Ind AS 109- Financial
Instruments
AMHPL erstwhile (subsidiary company) was merged
xi. Revaluation surplus
with the Company resulting in a capital reserve.
v. Debenture redemption reserve Revaluation surplus represents increase in carrying
amount arising on revaluation of land and building
The Company is required to create a debenture
recognised in other comprehensive income and
redemption reserve out of the profits which are
accumulated in reserves.
available for redemption of debentures.
xii. Foreign currency translation reserve
vi. Capital subsidy

This balance represents subsidy received in earlier years This balance represents exchange rate adjustment
under New Industrial Policy 2007 of the Government of arising on consolidation of foreign subsidiaries
Tamil Nadu for expansion and employment generation due to difference in opening, average and closing
within SIPCOT Industrial park. conversion rates.

8 CHANGES IN PROVISION FOR DOUBTFUL TRADE RECEIVABLES:

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 858.62 867.34
Addition during the year 71.76 57.61
Utilisation / reversal during the year (111.12) (51.15)
Foreign exchange translation impact 46.84 (15.18)
Closing balance 866.10 858.62

9 FINANCIAL INSTRUMENTS
A) Capital risk management

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 of changes in equity.

The Group's capital management objective is to achieve an optimal weighted average cost of capital while continuing
to safeguard the Group's ability to meet its liquidity requirements (including its commitments in respect of capital
expenditure) and repay loans as they fall due.

The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend

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payment to 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 loans and borrowings.

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Non-current borrowings (refer note B15) 37,898.44 44,084.74
Current borrowings * (refer note B18) 17,978.06 17,851.86
Sub-total (a) 55,876.50 61,936.60

Equity (refer note B13) 635.10 635.10

Other equity (refer note B14) 128,142.73 116,886.22
Sub-total (b) 128,777.83 117,521.32

Capital gearing ratio (a) / (b) 0.43 0.53

* Includes current maturities of long term borrowings

B) Financial risk management

a) Market risk

The Group's activities expose it primarily to the financial risk of changes in foreign currency exchange rates and
changes in interest 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 risk in recent past."

i) Currency risk

The Group's exposure arises mainly on import (of raw material and capital items) and export (of finished
goods). Wherever possible, the Group follows a policy of matching of import and export exposures (natural
hedge) to reduce the net exposure in 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.

Currency wise net exposure of the Group

H Million
As at As at
Sensitivity Sensitivity Sensitivity Sensitivity
Currency March 31, March 31,
+5% -5% +5% -5%
2023 2022
USD (938.14) (46.91) 46.91 (1,232.76) (61.64) 61.64
EURO 223.74 11.19 (11.19) 1,041.74 52.09 (52.09)
GBP (42.02) (2.10) 2.10 (85.20) (4.26) 4.26
Others 1,139.92 57.00 (57.00) 1,436.10 71.80 (71.80)

ii) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrows funds at both fixed and floating
interest rates. The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate
borrowings. The use of interest 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.

Interest 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.

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9 FINANCIAL INSTRUMENTS (Contd.)

The table below presents the impact on profit before tax for unhedged variable rate borrowings taken by
subsidiary companies assuming a market interest rate shift of 1.00%:

Sensitivity analysis
H Million
As at As at
Sensitivity Sensitivity Sensitivity Sensitivity
Currency March 31, March 31,
+1% -1% +1% -1%
2023 2022
Non-current 9,116.34 (91.16) 91.16 10,963.08 (109.63) 109.63
borrowings
(including current
maturities)
Current 4,403.16 (44.03) 44.03 5,156.48 (51.56) 51.56
borrowings

b) Credit risk

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 a policy of only dealing with creditworthy customers.

Trade receivables comprise a widespread customer base and each entity undertakes on going credit evaluations
of the financial condition of its customers, which may be based on the information supplied by the credit rating
agencies, publicly available financial information and its own trading records and trends. In many cases, an
appropriate advance is taken from the customer. In other cases, the entities use various methods to limit the credit
risk viz. credit insurance, bank guarantee, post dated cheques etc.

At the year end, the Group did not consider there to be any significant concentration of credit risk which had not
been adequately provided for. The carrying amount of the financial assets recorded in the financial statements,
grossed up for any allowances for losses, represents the maximum exposure to credit risk.

c) Liquidity risk

The Group manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously
monitoring forecasts and actual cash flows and by matching the maturity profiles of financial assets and liabilities
for each entity.

The Group has established an appropriate liquidity risk management framework for each entity's short term,
medium term and long term funding requirement.

d) Commodity risk

The Group has risk of price volatility and supply against its major raw materials and management is mitigating this
risk by taking strategic decision on regular basis.

The below tables summarise the maturity profile (undiscounted) of the Group's financial assets and financial liabilities


i) Non derivative financial assets

H Million
As at March 31, 2023 As at March 31, 2022
Particulars Less than 1 1 to 5 5 years Less than 1 1 to 5 5 years
year years and above year years and above
Non-interest bearing 37,722.75 1,992.69 1,571.46 35,326.21 1,786.88 1,449.56
Fixed interest rate instruments 1,386.24 - - 2,451.01 - -

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9 FINANCIAL INSTRUMENTS (Contd.)

ii) Non derivative financial liabilities
H Million
As at March 31, 2023 As at March 31, 2022
Particulars Less than 1 1 to 5 5 years Less than 1 1 to 5 5 years
year years and above year years and above
Non-interest bearing 37,890.85 - - 39,619.53 - -
Lease liability 2,187.06 4,564.11 1,577.63 2,267.94 4,182.74 2,221.87
Variable interest rate 13,158.32 17,798.69 3,944.06 12,269.23 19,445.33 7,242.39
instruments
Fixed interest rate 4,941.35 12,370.79 5,117.32 6,264.94 12,267.49 5,129.53
instruments

iii) Derivative assets / (liabilities)

H Million
As at March 31, 2023 As at March 31, 2022
Particulars Less than 1 1 to 5 5 years Less than 1 1 to 5 5 years
year years and above year years and above
Net settled:
– f oreign currency forward (55.91) - - (36.05) - -
contracts,
futures and options
measured at FVTPL
– foreign currency forward 5.34 - - 87.29 - -
contracts,
futures and options
measured at FVTPL
Gross settled:
– c ross currency interest 272.91 892.35 - - 1,054.60 -
rate swaps measured at
FVTOCI
Total 222.34 892.35 - 51.24 1,054.60 -

Interest rate swap

The Company had an interest rate swap agreement whereby the Company receives a fixed rate of interest of
6.5% to 7.5% and pays interest at a variable rate. The swap is being used to hedge the exposure to changes in the
fair value of its fixed rate secured loan. The decrease in fair value of the interest rate swap has been recognised
in finance costs and offset with a similar gain on the bank borrowings. The ineffectiveness recognised in March
31, 2023 was immaterial.

Foreign exchange forward contracts

While the Group entered into other foreign exchange forward contracts with the intention of reducing the
foreign exchange risk of expected sales and purchases, these other contracts are not designated in hedge
relationships and are measured at fair value through profit or loss

e) The below tables summarise the fair value of the financial asset / (liabilities):

i) Fair value of derivative instruments carried at fair value

H Million
Fair value
As at As at
hierarchy
Particulars March 31, March 31,
(Level 1, 2 or
2023 2022
3) *
Derivative financial assets (a)
-F oreign currency forward contracts, futures and 5.34 87.29 2
options measured at FVTPL
-C ross currency interest rate swaps measured at 1,165.26 1,054.60 2
FVTOCI
Total 1,170.60 1,141.89

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9 FINANCIAL INSTRUMENTS (Contd.)

H Million
Fair value
As at As at
hierarchy
Particulars March 31, March 31,
(Level 1, 2 or
2023 2022
3) *
Derivative financial liabilities (b)
-F oreign currency forward contracts, futures and 55.91 36.05 2
options measured at FVTPL
Total 55.91 36.05
Net derivative financial assets (a- b) 1,114.69 1,105.84

ii) Fair value of financial assets (other than derivative instruments) carried at fair value:
H Million
Fair value
As at As at
hierarchy
Particulars March 31, March 31,
(Level 1, 2 or
2023 2022
3) *
Financial assets
– Non current investments - quoted 2.06 2.36 1
– Non current investments - unquoted 288.88 256.18 3
– Current investments - quotwed 4,016.94 4,506.06 1
Total 4,307.88 4,764.60

iii) Fair value of financial assets / liabilities (other than investment in joint venture and associates) 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 consolidated balance sheet approximates their fair value.

* Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

* Level 2 - 
Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

* Level 3 - 
Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

f) Details of outstanding contracts #

Currency Average Nominal

Currency pair Currency value exchange value Buy / Sell
(Million) rate (Million)
As at March 31, 2023
Foreign currency forward contracts
CHF / EUR CHF 3.30 1.02 3.37 Sell
EUR / INR EUR 7.18 1.00 7.18 Sell
USD / EUR US Dollar 1.75 0.92 1.60 Sell
GBP / EUR GBP 5.14 1.13 5.83 Sell
PLN / EUR PLN 30.10 0.21 6.29 Sell
SEK / EUR SEK 30.60 0.09 2.74 Sell
USD / INR US Dollar 5.00 82.38 411.88 Buy
USD / THB US Dollar 6.00 33.77 202.60 Buy
USD / ZAR US Dollar 1.13 18.15 20.42 Buy
EUR / USD Euro 1.95 1.08 2.11 Sell
Futures and options
USD / INR US Dollar 23.00 83.38 1,917.74 Buy
USD / INR US Dollar 46.00 83.61 3,846.06 Sell
Cross currency interest rate swaps
USD / INR US Dollar 63.33 82.18 5,204.14 Buy

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9 FINANCIAL INSTRUMENTS (Contd.)

Currency Average Nominal

Currency pair Currency value exchange value Buy / Sell
(Million) rate (Million)
As at March 31, 2022
Foreign currency forward contracts
USD / INR US Dollar 21.95 75.80 1,663.76 Buy
USD / THB US Dollar 6.00 33.21 199.27 Buy
USD / ZAR US Dollar 1.13 14.58 16.40 Buy
EUR / INR Euro 4.60 84.07 386.74 Sell
Futures and options
USD / INR US Dollar 29.00 75.80 2,198.13 Buy
USD / INR US Dollar 44.50 75.80 3,372.99 Sell
Cross currency interest rate swaps
USD / INR US Dollar 104.50 75.80 7,920.58 Buy
# For fair value of outstanding contracts, refer note C9(B)(e)(i)

g) Impact of hedging activities

(1) Disclosures of effects of hedge accounting on consolidated balance sheet:
Carrying amount Change in value of
Change in
of hedging hedged item used
Notional Strike fair value
Type of hedge and instruments Hedge as the basis for
amount Maturity dates price of hedging
risks (J Million) ratio recognising hedge
(Million) range instruments
effectiveness
Assets Liabilities (J Million)
(J Million)
As at March 31, 2023
Cash flow hedge
Foreign exchange and
interest rate risk
Cross Currency Swaps
USD / INR USD 63.33 1,165.26 - June-2022 to 1:1 63.95 508.75 (508.75)
September-2024 to 67.5

(Carrying value of firm commitments for capital assets is J Nil (H 0.99 million) and is recognised in other non-
current assets as others)

Carrying amount Change in

of hedging instruments value of hedged
Change in
(J Million) item used as
Notional Strike fair value
Type of hedge and Hedge the basis for
amount Maturity dates price of hedging
risks ratio recognising
(Million) range instruments
Assets Liabilities hedge
(J Million)
effectiveness
(J Million)
As at March 31, 2022
Cash flow hedge
Foreign exchange and
interest rate risk
Cross Currency Swaps
USD / INR USD 104.50 1,054.60 - June-2022 to 1:1 63.95 (416.46) 416.46
September-2024 to 67.5
Fair value hedge
Foreign exchange risk
Foreign currency
forward contracts
EUR / INR EUR - - -
USD / INR USD 8.45 - (0.99) April-2022 1:1 76.105 (0.99) 0.99
to
76.105

(Carrying value of firm commitments for capital assets is H 0.99 million and is recognised in other non-current
assets as others)

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9 FINANCIAL INSTRUMENTS (Contd.)

(2) Disclosure of effects of hedge accounting on consolidated statement of profit and loss

H Million
Change in value of
Amount
hedging instrument Hedge
reclassified from Line item affected
Type of hedge recognised in other ineffectiveness
cash flow hedge on reclassification
comprehensive recognised
reserve
income
For the year ended
March 31, 2023
Cash flow hedge
Foreign exchange and 508.75 - 160.53 Finance Cost
interest rate risk (605.78) Gain on foreign
currency
transactions and
translations

H Million
Change in value of
Amount
hedging instrument Hedge
reclassified from Line item affected
Type of hedge recognised in other ineffectiveness
cash flow hedge on reclassification
comprehensive recognised
reserve
income
For the year ended March
31, 2022
Cash flow hedge
Foreign exchange and (416.46) - 626.91 Finance Cost
interest rate risk (59.09) Gain on foreign
currency
transactions and
translations

(3) Movement in cash flow hedging reserve

H Million
Foreign currency and
Particulars
interest rate risk
Cash flow hedge reserve
Balance as at April 01, 2021 (97.31)
Add: Changes in fair value of cross currency swaps (416.46)
Less: Amount reclassified to consolidated statement of profit and loss 567.82
Less: Deferred tax relating to above (net) (52.89)
Balance as at March 31, 2022 1.16
Add: Changes in fair value of cross currency swaps 508.75
Less: Amount reclassified to consolidated statement of profit and loss (445.25)
Less: Deferred tax relating to above (net) (22.19)
Balance as at March 31, 2023 42.47

10 GOVERNMENT GRANTS of Investment Promotion Subsidy (referred to as

Phase I). As the Company has fulfilled the relevant
a) Investment promotion subsidy obligations, the Company has recognized subsidy
income of J 801.35 Million (H 995.08 Million) as
The Government of Tamil Nadu (GoTN) has
other operating income, being the eligible amount
sanctioned a structured package of assistance
of refund of Net Output (VAT + CST) /SGST paid by
to the Company for setting up/expansion of their
the Company to GoTN."
project in the state of Tamil Nadu, pursuant to
which a Memorandum of Understanding (MoU) In addition to above, the Company is entitled, for
executed between GoTN and the Company refund of an amount equal to 1% of the capital
investment for a period of 12 years to be payable in
The Company is entitled, interalia, for refund of
equal annual instalments in the form of Investment
an amount equal to Net Output (VAT + CST)/
Promotion Capital Subsidy (referred to as Phase II).
SGST paid by the Company to GoTN in the form
Accordingly, the Company has recognised grant

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receivable at its fair value, amounting to J1,686.66 amortised & recognized as income in consolidated
Million (H1,812.72 Million) under non-current statement of profit and loss. Amortisation of grant
financial assets and J270 Million (H270 Million) is based on relevant assets depreciation which have
under current financial assets. Deferred grant been subsidised. The un-amortized portion of grant
income amounting J1,492.14 Million (H1,627.79 has been retained in deferred revenue under other
Million) is recognised under other non-current non-current liabilities.
liabilities and J135.65 Million (H135.65 Million)
under other current liabilities. Deferred income will d) During the previous year ended March 31, 2022, ATH
be recognised in the statement of profit or loss on a Kft received a grant (VNT3) for H 86.52 Million against
systematic basis over the useful life of the asset (15 its ongoing project for finished goods warehouse
years). During the year, the Company has recorded expansion. Amortization of subsidy will start post
grant income amounting to H 135.65 Million (H completion of project. Monitoring period of grant starts
135.65 Million) under Other operating income and in April 2023 and will end by March 2025.
accretion of grant recoverable as finance income
amounting to J 144.94 million (H 154.20 million) 11 EMPLOYEE BENEFIT LIABILITY
under Other income.
i. Defined contribution plans
Also, the Government of Andhra Pradesh (GoAP)
has sanctioned a structured package of assistance a. Superannuation plan: The company
to the Company for setting up of their project in contributes a sum equivalent to 15% of
the state of Andhra Pradesh, pursuant to which a the eligible employees' basic salary to a
Memorandum of Understanding (MoU) executed superannuation fund administered and
between GoAP and the Company. The Company is maintained by the Life Insurance Corporation
entitled, interalia, for refund of an amount equal of India (LIC). The Company has no liability
to Net SGST paid by the Company to GoAP in the for future superannuation fund benefits other
form of Investment Promotion Subsidy. As the than its annual contribution and recognizes
Company has fulfilled the relevant obligations, such contributions as an expense in the year
the Company has recognized subsidy income of J incurred. The amount of contribution made
169.04 Million (H 80.79 Million) as other operating by the Company to Superannuation Fund is J
income, being the eligible amount of refund of Net 132.40 Million (H 152.71 Million).
SGST paid by the Company to GoAP.
Provident fund: Contributions are made to
b. 
b) Export promotion capital goods the Company’s employees' provident fund
trust / regional provident fund in accordance
The Company had imported Property, plant and
with the fund rules. The interest rate payable
equipment under the Export Promotion Capital
to the beneficiaries every year is being notified
Goods (EPCG) scheme wherein the Company is
by the Government.
allowed to import capital goods including spares
without payment of customs duty, subject to In the case of contributions to the trust, the
certain export obligations which should be fulfilled Company has an obligation to make good
within specified time period. During the year, the the shortfall, if any, between the return from
custom duty benefit received amounts to J 281.46 the investments of the trust and the notified
Million (H 2,591.06 Million) with a corresponding interest rate and recognises such obligation as
increase in the value of property, plant and an expense.
equipment and Capital Work in Progress. The
grant amounting to J 2,266.57 Million (H 1,540.68 The amount of contributions made by the
Million) where export obligations have been met, Company to employees' provident fund trust
have been recognized in Statement of Profit and / regional provident fund is J 360.46 Million
Loss as other operating income. At the year end, (H 326.44 Million).
the portion of grant for which the export obligation
The subsidiaries in the Group have contributed to
has not been met is retained in deferred revenue
various defined contribution plans as per the local
under other current & non current liabilities.
laws of the respective countries. The amount of
c) The Group has successfully completed its greenfield contribution made by such subsidiaries is J 228.53
project in Gyöngyöshalász, Hungary through its Million (H 455.66 Million).
subsidiary Apollo Tyres Hungary Kft (ATH Kft). For
this project, ATH Kft had entered into an agreement ii. Defined benefit plans
for grant with the Ministry of National Development, A. Indian operations
Government of Hungary on June 30, 2014.
1) Gratuity - Company
The project was completed by December 31, 2019
within the stipulated time. The subsidy agreement The Company operates a defined benefit
defines contractual obligations and criteria for gratuity plan. Every employee who has
the aforesaid subsidiary company. The monitoring completed five years or more of service
period started in April 2020 for the period of 5 years. receives gratuity on leaving the Company as
per the Payments of Gratuity Act, 1972. The
During the year, J 160.21 Million (H 183.29 Million) was
scheme is funded with LIC.

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11 EMPLOYEE BENEFIT LIABILITY (Contd.)

The following table summarizes the components of net benefit expense recognized in the consolidated
statement of profit and loss and the funded status and amounts recognized in the consolidated balance sheet
for the respective plan:

Consolidated statement of profit and loss

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Current service cost ^ 131.84 126.00
Interest cost on benefit obligation * 134.81 109.45
Actual return on plan assets * (137.19) (103.63)
Expense recognized in the consolidated statement of profit and loss 129.46 131.82
^ Included in employee benefit expense
* Included in finance cost

Other comprehensive income (experience adjustment)

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Actuarial (gain) / loss for the year on defined benefit obligation (80.31) 84.57
Actuarial (gain) / loss for the year on plan asset 3.94 (42.86)
Total (76.37) 41.71

Consolidated balance sheet

Net asset / (liability) recognised in the consolidated balance sheet
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Fair value of plan assets at the end of the year (a) 2,240.39 1,874.19
Present value of defined benefit obligation at the end of the year (b) 1,941.15 1,841.62
Net asset / (liability) recognized in the consolidated balance 299.24 32.57
sheet (a - b)

Changes in the present value of the defined benefit obligation

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Present value of obligations as at the beginning of the year 1,841.62 1,583.90
Interest cost 134.81 109.45
Current service cost 131.84 126.00
Benefits paid (86.81) (62.30)
Actuarial (gain) / loss on obligation (80.31) 84.57
Present value of obligation as at the end of the year 1,941.15 1,841.62

Changes in the fair value of plan assets

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Fair value of plan assets as at the beginning of the year 1,874.19 1,499.72
Actual return on plan assets 137.19 103.63
Contributions 319.76 290.28
Benefits paid (86.81) (62.30)
Actuarial (loss) / gain on plan assets (3.94) 42.86
Fair value of plan assets as at the end of the year 2,240.39 1,874.19

The Company’s gratuity funds are managed by the LIC and therefore the composition of the fund assets in not
presently ascertained.

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Maturity profile of defined benefit obligation
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
0-1 year 147.95 233.85
1-2 year 156.64 85.07
2-3 year 130.40 105.48
3-4 year 108.92 119.51
4-5 year 103.79 95.96
More than 5 years 1,293.45 1,201.75
Total 1,941.15 1,841.62

Principal assumptions for gratuity

H Million
As at As at
Particulars March 31, 2023 March 31, 2022
(Rate%) (Rate %)
a) Discount rate 7.50 7.32
b) Future salary increase * 6.00 6.00
c) Retirement age (years) 58/65 58
d) Mortality table 100% IALM 100% IALM
(2012-2014) (2012-2014)
e) Ages (withdrawal rate %)
Up to 30 years 3.00 3.00
From 31 to 44 years 2.00 2.00
Above 44 years 1.00 1.00
* The estimates of future salary increase take into account inflation, seniority, promotion and other relevant factors.
Estimated amount of contribution in the immediate next year is J 122.36 Million (H 131.56 Million).

Sensitivity analysis of the defined benefit obligation

H Million
Impact of change in Discount rate Salary increase Attrition rate
Present value of obligation as on March 31, 2023 1,941.15 1,941.15 1,941.15
Impact due to increase of 0.50% (93.29) 102.09 0.67
Impact due to decrease of 0.50% 101.11 (94.99) (0.55)

H Million
Impact of change in Discount rate Salary increase Attrition rate
Present value of obligation as on March 31, 2022 1,841.62 1,841.62 1,841.62
Impact due to increase of 0.50% (80.25) 87.80 0.58
Impact due to decrease of 0.50% 87.10 (81.58) (0.46)

2) Gratuity - Apollo Tyres Centre of Excellence Limited (COE)

The COE entity has a defined benefit gratuity plan. Every employee who has completed five years or more of
service receives gratuity on leaving the COE entity as per the Payments of Gratuity Act, 1972.

The following table summarizes the components of net benefit expense recognized in the consolidated
statement of profit and loss and amounts recognized in the consolidated balance sheet:

Principal assumptions
As at As at
Particulars March 31, 2023 March 31, 2022
(Rate%) (Rate %)
a) Discount rate 7.39 -
b) Future salary increase 7.80 -
c) Retirement age (years) 60.00 -
d) Mortality table 100% IALM -
(2012-2014)

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Changes in the present value of the defined benefit obligation
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Present value of obligation as at the beginning of the year - -
Service cost 3.56 -
Interest cost 0.20 -
Actuarial (gain) / loss on obligation 1.32 -
Present value of obligation as at the end of the year 5.08 -

Net asset / (liability) recognised in the consolidated balance sheet

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Fair value of plan assets as at the end of the year (a) - -
Present value of defined benefit obligation as at the end of the 5.08 -
year (b)
Net asset / (liability) recognized in the consolidated balance (5.08) -
sheet (a - b)

Sensitivity analysis of the defined benefit obligation

H Million
Impact of change in Discount rate Salary increase
Present value of obligation as on March 31, 2023 5.08 5.08
Impact due to increase of 0.50% (0.11) 0.11
Impact due to decrease of 0.50% 0.11 (0.11)

Maturity profile of defined benefit obligation

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
0-1 year 0.86 -
1-2 year 0.08 -
2-3 year 0.08 -
3-4 year 0.07 -
4-5 year 0.07 -
More than 5 years 3.92 -
Total 5.08 -

B. Foreign operations

The pension liability as recorded in the consolidated balance sheet relates to the defined benefit plan of Apollo
Tyres (Germany) GmbH and Reifencom Gmbh Hannover where the actuarial calculations were performed by
certified actuarial firms.

1 Apollo Tyres (Germany) GmbH

Principal assumptions
As at As at
Particulars March 31, 2023 March 31, 2022
(Rate%) (Rate %)
Pension increase 2.20 2.00
Mortality table Heubeck 2018G Heubeck 2018G
Individual salary increase (dependent on age) 3.00 3.00
Discount rate 3.80 1.70

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Changes in the present value of the defined benefit obligation
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Defined benefit obligation
Present value of obligation as at the beginning of the year 769.94 834.65
Service cost 29.00 19.47
Interest cost 12.83 9.13
Benefits paid (23.50) (9.60)
Actuarial (gain) / loss on obligation (233.82) (67.89)
Foreign exchange translation impact 74.66 (15.82)
Present value of obligation as at the end of the year 629.11 769.94

Net asset / (liability) recognised in the consolidated balance sheet

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Fair value of plan assets as at the end of the year (a) - -
Present value of defined benefit obligation as at the end of the 629.11 769.94
year (b)
Net asset / (liability) recognized in the consolidated balance (629.11) (769.94)
sheet (a - b)

Sensitivity analysis of the defined benefit obligation

Change in Change in
Change in Change in
defined benefit defined benefit
Particulars assumption assumption
obligation obligation
2022-23 2022-23 2021-22 2021-22
Discount rate Increase by (12.41%) Increase by (15.36%)
1.00% 1.00%
Salary increase Increase by 0.85% Increase by 1.32%
0.50% 0.50%
Pension increase Increase by 2.67% Increase by 3.17%
0.25% 0.25%

Maturity profile of defined benefit obligation

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
0-1 year 29.02 24.23
1-2 year 29.57 24.95
2-3 year 31.13 25.52
3-4 year 32.02 27.02
4-5 year 33.30 27.88
5-10 years 175.11 149.97
Total 330.15 279.57

2 Reifencom Gmbh Hannover

Principal assumptions
As at As at
Particulars March 31, 2023 March 31, 2022
(Rate%) (Rate %)
Pension increase 2.30 2.00
Mortality table Heubeck 2018G Heubeck 2018G
Retirement age (years) 65.00 65.00
Discount rate 3.80 1.70

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Changes in the present value of the defined benefit obligation

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Present value of obligation as at the beginning of the year 120.23 127.04
Service cost 0.37 0.40
Interest cost 2.03 1.41
Actuarial (gain) / loss on obligation (18.05) (6.14)
Foreign exchange translation impact 6.23 (2.48)
Present value of obligation as at the end of the year 110.81 120.23

Changes in the fair value of plan assets

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Fair value of plan assets as at the beginning of the year 153.24 151.94
Actuarial gain on plan assets 1.97 2.88
Interest income 2.59 1.69
Foreign exchange translation impact 9.54 (3.27)
Fair value of plan assets as at the end of the year 167.34 153.24

Net asset / (liability) recognised in the consolidated balance sheet

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Fair value of plan assets as at the end of the year (a) 167.34 153.24
Present value of defined benefit obligation as at the end of the 110.81 120.23
year (b)
Net asset / (liability) recognized in the consolidated balance 56.53 33.01
sheet (a - b)

Sensitivity analysis of the defined benefit obligation

Change in Change in defined Change in Change in defined
Particulars assumption benefit obligation assumption benefit obligation
2022-23 2022-23 2021-22 2021-22
Discount rate Increase by (7.41%) Increase by (8.56%)
1.0% 1.0%
Discount rate Decrease by 8.17% Decrease by 9.59%
1.0% 1.0%
Pension increase Increase by 0.18% Increase by 0.22%
0.25% 0.25%
Pension increase Decrease by (0.17%) Decrease by (0.21%)
0.25% 0.25%

Maturity profile of defined benefit obligation

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
0-1 year 0.25 0.21
1-2 year 0.28 0.24
2-3 year 0.30 0.26
3-4 year 0.33 0.28
4-5 year 0.91 0.31
More than 5 years 108.74 118.93
Total 110.81 120.23

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iii Other long term employee benefits
Long term compensated absences
Indian Operations
Principal assumptions for long term compensated absences
As at As at
Particulars March 31, 2023 March 31, 2022
(Rate%) (Rate %)
a) Discount rate 7.50 7.32
b) Future salary increase * 6.00 6.00
c) Retirement age (years) 58 /65 58
d) Mortality table 100% IALM (2012- 100% IALM (2012-
2014) 2014)
e) Ages (withdrawal rate %)
Up to 30 years 3.00 3.00
From 31 to 44 years 2.00 2.00
Above 44 years 1.00 1.00
* The estimates of future salary increase take into account inflation, seniority, promotion and other relevant factors.

12 CONTINGENT LIABILITIES
H Million
As at As at
a. Particulars
March 31, 2023 March 31, 2022
Sales tax 65.23 60.77
Income tax 1,771.63 1,670.51
Claims against the Group not acknowledged as debt
-Employee related 116.51 161.09
- Others 35.80 32.30
Excise duty, custom duty and service tax * 671.42 661.81
* Show-cause notices received from various Government Authorities 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.

b. The Competition Commission of India ('CCI') on February 2, 2022 had released its order dated August 31, 2018 on the
Company, other Tyre Manufacturers and Automotive Tyre Manufacturer Association alleging contravention of the
provisions of the Competition Act, 2002 in the year 2011-12 and imposed a penalty of H 4,255.30 Million on the Company.
The Company had filed an appeal against the CCI Order before the Honourable National Company Law Appellate
Tribunal (NCLAT). NCLAT in its order dated December 1, 2022, had remanded the matter back to the CCI to hear the
parties again and review its findings. CCI has filed an Appeal before the Supreme Court against the Order passed by the
NCLAT. The Company is also a Respondent in the said Appeal. Pending disposal of the matter and based on legal advice
the Company believes that it has a strong case and accordingly no provision is considered in these consolidated financial
statements.

13 STATUTORY AUDITOR'S REMUNERATION

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
For audit and quarterly reviews 70.76 75.11
For reimbursement of expenses 0.46 0.38
For other services 2.14 2.68
Total 73.36 78.17

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14 RESEARCH AND DEVELOPMENT EXPENDITURE

H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Revenue expenditure 2,826.68 2,734.89
Capital expenditure* 1,081.74 500.92
Total 3,908.42 3,235.81
The Group carries out research and development activities to bring cutting edge technology and innovation in relation to tyre manufacturing.
*includes revenue expenditure which qualified as development expenditure for intangible assets as per Ind AS-38.

15 CAPITAL COMMITMENTS
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Estimated amount of contracts remaining to be executed on capital account 1,483.16 4,945.02
and not provided for

16 The Company conducts international transactions with associated enterprises. For the current year, the management
maintained necessary documents as prescribed by the Income Tax Act, 1961 to establish that these international
transactions are at arm’s length and the aforesaid legislation will not have any impact on the financial statements,
particularly on the amount of tax expense and that of provision for taxation.

17 FOLLOWING SUBSIDIARIES, JOINT VENTURE AND ASSOCIATE HAVE BEEN CONSIDERED IN

THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS:
% of holding and voting
power either directly
Country or indirectly through
S. Ownership held subsidiary
Name of the entity Relationship of Remarks
no. by
incorporation As at As at
March 31, March 31,
2023 2022
1 Apollo Tyres Centre of Subsidiary India Apollo Tyres Ltd 100% 100%
Excellence Limited
2 Apollo Tyres Subsidiary Netherlands Apollo Tyres Ltd 100% 100%
(Greenfield) B.V.
3 Apollo Tyres Subsidiary Netherlands Apollo Tyres 100% 100%
Cooperatief U.A. Ltd and
(Apollo Coop) Apollo Tyres
(Greenfield)
B.V.
4 Apollo (South Africa) Subsidiary South Africa Apollo Coop 100% 100%
Holdings (Pty) Ltd
(ASHPL)
5 Apollo Tyres Africa Subsidiary South Africa ASHPL 100% 100%
(Pty) Ltd
6 Apollo Tyres (Thailand) Subsidiary Thailand Apollo Coop 100% 100%
Limited
7 Apollo Tyres (Middle Subsidiary Dubai Apollo Coop 100% 100%
East) FZE
8 Apollo Tyres Holdings Subsidiary Singapore Apollo Coop 100% 100%
(Singapore) Pte Ltd
(ATHS)
9 ATL Singapore Pte Ltd. Subsidiary Singapore ATHS - 100% Note (a)
10 Apollo Tyres (Malaysia) Subsidiary Malaysia ATHS 100% 100% Note (b)
SDN BHD
11 Apollo Tyres (UK) Subsidiary United Apollo Coop 100% 100%
Holdings Ltd (Formerly Kingdom
Apollo Tyres (UK) Pvt
Ltd) (ATUK)
12 Apollo Tyres (London) Subsidiary United ATUK 100% 100%
Pvt Ltd Kingdom

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THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS: (Contd.)
% of holding and voting
power either directly
Country or indirectly through
S. Ownership held subsidiary
Name of the entity Relationship of Remarks
no. by
incorporation As at As at
March 31, March 31,
2023 2022
13 Apollo Tyres Global Subsidiary Netherlands Apollo Coop 100% 100%
R&D B.V.
14 Apollo Tyres (R&D) Subsidiary Germany Apollo Coop 100% 100%
GmbH
(Formerly Apollo Tyres
(Germany) GmbH)
15 Apollo Tyres AG Subsidiary Switzerland Apollo Coop 100% 100%
16 Apollo Tyres Do (Brasil) Subsidiary Brazil Apollo Coop 100% 100%
Ltda and ATEU
17 Apollo Tyres (Europe) Subsidiary Netherlands Apollo Coop 100% 100%
B.V.
(Formerly Apollo Tyres
B.V.) (ATEU)
18 Apollo Tyres (Hungary) Subsidiary Hungary ATEU 100% 100%
Kft. (ATH Kft)
19 Apollo Tyres (NL) B.V. Subsidiary Netherlands ATEU 100% 100%
(Formerly Apollo
Vredestein B.V.) (ATNL)
20 Apollo Tyres (Germany) Subsidiary Germany ATNL 100% 100%
GmbH (Formerly Apollo
Vredestein GmbH) (AT
GmbH)
21 Apollo Tyres (Nordic) Subsidiary Sweden ATNL 100% 100%
A.B.
(Formerly Apollo
Vredestein Nordic A.B.)
22 Apollo Tyres (UK) Sales Subsidiary United ATNL and Finlo 100% 100%
Ltd Kingdom B.V.
(Formerly Apollo
Vredestein (UK)
Limited)
23 Apollo Tyres (France) Subsidiary France ATNL and Finlo 100% 100%
SAS B.V.
(Formerly Apollo
Vredestein France SAS)
24 Apollo Tyres (Belux) SA Subsidiary Belgium ATNL and Finlo 100% 100%
(Formerly Apollo B.V.
Vredestein Belux)
25 Apollo Tyres (Austria) Subsidiary Austria ATNL 100% 100%
Gesellschaft m.b.H.
(Formerly Apollo
Vredestein Gesellschaft
m.b.H.)
26 Apollo Tyres (Schweiz) Subsidiary Switzerland ATNL 100% 100%
AG
(Formerly Apollo
Vredestein Schweiz AG)
27 Apollo Tyres Iberica Subsidiary Spain ATNL 100% 100%
S.A.U.
(Formerly Apollo
Vredestein Iberica SAU)
28 Apollo Tires (US) Inc. Subsidiary USA Apollo Coop 100% 100%
(Formerly Apollo
Vredestein Tires Inc.)

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17 FOLLOWING SUBSIDIARIES, JOINT VENTURE AND ASSOCIATE HAVE BEEN CONSIDERED IN

THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS: (Contd.)
% of holding and voting
power either directly
Country or indirectly through
S. Ownership held subsidiary
Name of the entity Relationship of Remarks
no. by
incorporation As at As at
March 31, March 31,
2023 2022
29 Apollo Tyres (Hungary) Subsidiary Hungary ATNL 100% 100%
Sales Kft (Formerly
Apollo Vredestein Kft)
(AT Kft)
30 Apollo Tyres (Polska) Subsidiary Poland ATNL and AT 100% 100%
Sp. Z.o.o. (Formerly GmbH
Apollo Vredestein
Opony Polska Sp. Z.o.o.)
31 Vredestein Consulting Subsidiary Netherlands ATNL 100% 100%
B.V.
32 Finlo B.V. Subsidiary Netherlands ATNL 100% 100%
33 Reifencom GmbH, Subsidiary Germany Apollo Coop 100% 100%
Hannover
34 Reifencom Tyre Subsidiary China Reifencom 100% 100%
(Qingdao) Co., Ltd. GmbH,
Hannover
35 Saturn F1 Pvt Ltd Subsidiary United Apollo Coop 100% 100%
Kingdom
36 Pan Aridus LLC Joint USA ATHS 50.00% 50.00% Note (c)
Venture
37 KT Telematic Solutions Associate India Apollo Tyres Ltd 25.00% 25.00%
Private Limited

Notes

(a) Liquidated w.e.f. 08.08.2022.

(b) In the process of liquidation.

(c) The 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 joint venture.

(d) During the previous year, the Company had invested H 93.30 million by purchasing 11,66,250 equity shares and in
current year further invested H 2.70 million by purchasing 33,750 equity shares of CSE Deccan Solar Private Limited,
totalling equity stake 27.27% as on March 31, 2023, to get a guaranteed supply of 40 million units of electricity per
annum for its Chennai Plant. This amount is refundable after the tenure. Consequent to this investment, CSE Deccan
Solar Private Limited has been considered as an Associate Company as per the requirement of Companies Act, 2013.
However, as per the provisions of IND AS 28 - Investment in Associates and Joint Ventures, the said investment made by
the Company is not considered as an investment in associate. Therefore, this investment has been accounted for as per
the provisions of IND AS 109 Financial Instruments.

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18 DISCLOSURE OF RELATED PARTY TRANSACTIONS IN ACCORDANCE WITH IND AS 24 RELATED

PARTY DISCLOSURES
i) Name of the related parties

Particulars For the year ended March 31, 2023 For the year ended March 31, 2022
Companies in which directors are Apollo International Limited Apollo International Limited
interested Apollo International FZC Apollo International FZC
Sunlife Tradelinks (P) Ltd. Sunlife Tradelinks (P) Ltd.
Classic Industries and Exports Limited Classic Industries and Exports Limited
PTL Enterprises Ltd. PTL Enterprises Ltd.
Artemis Cardiac Care Pvt Ltd Artemis Cardiac Care Pvt Ltd
Premedium Pharmaceuticals Pvt Ltd Premedium Pharmaceuticals Pvt Ltd
Nutriburst India Private Limited Nutriburst India Private Limited
Swaranganga Consultants Private Swaranganga Consultants Private
Limited Limited
Artemis Medicare Services Ltd. Artemis Medicare Services Ltd.
Shardul Amarchand Mangaldas & Co. Shardul Amarchand Mangaldas & Co.
Regent Properties Regent Properties
Sunrays Medi Equipment Pvt Ltd Sunrays Medi Equipment Pvt Ltd
Scalini Limited Scalini Limited
Nutriburst Ltd (UK) Nutriburst Ltd (UK)
Rosspark Limited Rosspark Limited
Associate KT Telematic Solutions Private Limited KT Telematic Solutions Private Limited
Joint venture Pan Aridus LLC Pan Aridus LLC
Key management personnel Mr. Onkar Kanwar # Mr. Onkar Kanwar
Mr. Neeraj Kanwar Mr. Neeraj Kanwar
Mr. Satish Sharma Mr. Satish Sharma
Mr. Akshay Chudasama Mr. Akshay Chudasama
Gen. Bikram Singh (Retd.) Gen. Bikram Singh (Retd.)
Mr. Francesco Gori Mr. Francesco Gori
Ms. Pallavi Shroff Ms. Pallavi Shroff
Mr. Robert Steinmetz Mr. Robert Steinmetz
Mr. Sunam Sarkar Mr. Sunam Sarkar
Mr. Vikram S. Mehta Mr. Vikram S. Mehta
Mr. Vinod Rai Mr. Vinod Rai
Dr. Jaimini Bhagwati * Ms. Anjali Bansal
Mr Francesco Crispino Mr Francesco Crispino
Mr Vishal Kashyap Mahadevia Mr Vishal Kashyap Mahadevia
Ms. Lakshmi Puri Ms. Lakshmi Puri

Note: Related parties and their relationships are as identified by the management and relied upon by the auditors. All transactions are conducted in the ordinary
course of business and at arm's length.

# Ceased to be a wholetime director and re-appointed as non executive director w.e.f. 1st Feb 2023.
* Appointed during the year

ii) Transactions and balances with related parties

a) Companies in which directors are interested

H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Description of transactions:
Sales: finished goods
Apollo International Limited 211.31 70.18
Apollo International FZC 55.44 380.88
266.75 451.06
Sales: raw materials
Classic Industries and Exports Limited 859.15 735.71
Cross charge of management & other expenses received:
PTL Enterprises Ltd. 0.85 0.85

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18 DISCLOSURE OF RELATED PARTY TRANSACTIONS IN ACCORDANCE WITH IND AS 24 RELATED

PARTY DISCLOSURES (Contd.)
H Million
As at As at
Particulars
March 31, 2023 March 31, 2022
Classic Industries and Exports Limited 1.69 1.69
Artemis Medicare Services Ltd. 0.60 0.71
3.14 3.25
Rent received:
PTL Enterprises Ltd. 0.39 0.39
Classic Industries and Exports Limited 1.06 1.06
Artemis Medicare Services Ltd 0.18 0.05
Artemis Cardiac Care Pvt Ltd 0.12 0.03
Premedium Pharmaceuticals Pvt Ltd 0.06 0.02
Nutriburst India Private Limited 0.09 -
Sunrays Medi Equipment Pvt Ltd 0.05 -
1.95 1.55
Reimbursement of expenses received:
Classic Industries and Exports Limited 13.59 11.85
Freight & Insurance recovered:
Apollo International FZC - 0.02
Purchases of health supplements:
Nutriburst India Private Limited 56.94 58.31
Nutriburst Ltd (UK) 13.10 25.02
70.04 83.33
Purchases of stock in trade:
Classic Industries and Exports Limited 4,410.12 3,836.80
Purchase of assets:
Classic Industries and Exports Limited 625.04 757.19
Palazzo Design Limited 2.68 -
627.72 757.19
Legal and professional charges paid:
Shardul Amarchand Mangaldas & Co. 9.90 6.77
Purchase of license:
Artemis Medicare Services Ltd. 45.50 -
Reimbursement of expenses paid:
PTL Enterprises Ltd. 639.56 669.66
Classic Industries and Exports Limited 10.00 19.44
649.56 689.10
Payment for services received:
Artemis Medicare Services Ltd. 24.40 94.95
Classic Industries and Exports Limited 24.39 13.70
48.79 108.65
Lease rent paid:
PTL Enterprises Ltd. 611.20 600.00
Rent paid:
Sunlife Tradelinks (P) Ltd. 36.00 31.82
Swaranganga Consultants Pvt Ltd 12.08 1.58
Rosspark Limited 64.62 74.12
Regent Properties 21.34 23.76
Classic Industries and Exports Limited 0.12 0.12
134.16 131.40
Other expenses:
Scalini Limited 2.97 3.62
Mixing charges paid:
Classic Industries and Exports Limited 109.67 178.07
Refund of security deposits given:
Regent Properties 3.30 -

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18 DISCLOSURE OF RELATED PARTY TRANSACTIONS IN ACCORDANCE WITH IND AS 24 RELATED

PARTY DISCLOSURES (Contd.)
b) Associate
H Million
Particulars FY 2022- 2023 FY 2021 - 2022
Payment for services received:
KT Telematic Solutions Private Limited 0.51 0.88

H Million
Particulars FY 2022- 2023 FY 2021 - 2022
Amount outstanding:
Other non-current financial assets*:
PTL Enterprises Ltd. 600.00 600.00
Sunlife Tradelinks (P) Ltd. 5.86 5.86
Regent Properties 2.10 5.40
Rosspark Limited 6.08 5.99
Swaranganga Consultants Pvt Ltd 3.15 3.15
617.19 620.40
Other non-current assets:
Classic Industries and Exports Limited - 194.27
Trade receivables:
Apollo International Limited 18.34 59.45
Artemis Cardiac Care Pvt Ltd 0.07 0.04
Artemis Medicare Services Ltd. 0.02 -
Premedium Pharmaceuticals Pvt Ltd - 0.02
18.43 59.51
Other current financial assets:
PTL Enterprises Ltd. 50.52 51.74
KT Telematic Solutions Private Limited 0.01 -
Classic Industries and Exports Limited 201.99 263.31
252.52 315.05
Trade payable:
Classic Industries and Exports Limited 436.23 511.16
Artemis Medicare Services Ltd. 2.40 5.96
Shardul Amarchand Mangaldas & Co. 0.90 0.49
Rosspark Limited - 6.05
439.53 523.66
Other current financial liabilities:
Classic Industries and Exports Limited 128.77 123.26
Apollo International FZC 0.37 18.11
KT Telematic Solutions Private Limited - 0.25
129.14 141.62

c) Key management personnel (KMP)

H Million
Particulars FY 2022-23 FY 2021-22
Managerial remuneration:
Mr. Onkar Kanwar 270.59 140.14
Mr. Neeraj Kanwar 284.12 122.62
Mr. Satish Sharma 99.70 89.58
654.41 352.34
Sitting fees:
Non-executive directors 4.29 4.13
Commission:
Non-executive directors 50.00 38.00

Certain KMPs also participate in post employment benefits plans provided by the Company. The amount in respect of these
towards the KMPs can not be segregated as these are based on actuarial valuation for all employees of the Company.

* This represents undiscounted value.

371
 19 SEGMENTAL REPORTING

372
The Group’s operations comprise only one business segment – Automobile Tyres, Automobile Tubes & Automobile Flaps in the context of reporting business / geographical
segment as required under Ind AS 108 - Operating Segments.
Based on the "management approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker evaluates the Company's performance and allocates
resources based on an analysis of various performance indicators by business segment. Accordingly, information has been presented along these business segments which have
been defined based on the geographical presence of various entities:
a) APMEA (Asia Pacific, Middle East and Africa)
b) Europe
c) Others
APMEA segment includes manufacturing and sales operation through India and include entities in UAE, Thailand, Malaysia and South Africa. Europe segment includes
manufacturing and sales operation through the entities in Europe. Others segment includes sales operations in Americas and all other corporate entities.
The accounting principles used in the preparation of the consolidated financial statements are consistently applied in individual segments to prepare segment reporting.
H Million
APMEA Europe Others Eliminations Total
For the For the For the For the For the For the For the For the For the For the
Particulars year ended year ended year ended year ended year ended year ended year ended year ended year ended year ended
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
1. REVENUE
Total revenue 174,668.97 148,265.16 72,974.23 65,543.45 48,783.10 40,971.73 (50,745.00) (45,304.56) 245,681.30 209,475.78
Inter segment revenue (8,241.71) (6,168.88) (3,123.95) (1,778.35) (39,379.34) (37,357.33) 50,745.00 45,304.56 - -
External revenue 166,427.26 142,096.28 69,850.28 63,765.10 9,403.76 3,614.40 - - 245,681.30 209,475.78
2. RESULT
Segment result 12,346.87 7,151.27 5,107.68 4,481.18 1,901.48 1,346.64 - - 19,356.03 12,979.09
Interest expense (4,683.05) (3,831.35) (442.50) (524.47) (186.80) (88.41) - - (5,312.35) (4,444.23)
Share of profit / (loss) in associates 2.42 0.96 - - - - - - 2.42 0.96
/ joint venture
Exceptional items - (59.08) 225.77 - - - - - 225.77 (59.08)
Income taxes (2,217.68) (938.91) (1,007.56) (890.99) (0.27) (260.84) - - (3,225.51) (2,090.74)
Net profit after tax 5,448.56 2,322.89 3,883.39 3,065.72 1,714.41 997.39 - - 11,046.36 6,386.00
3. OTHER INFORMATION
Depreciation and amortisation 9,141.26 8,306.47 4,671.05 5,268.76 379.11 421.50 - - 14,191.42 13,996.73

H Million
APMEA Europe Others Eliminations Total
Particulars As at March As at March As at March As at March As at March As at March As at March As at March As at March As at March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
Segment assets 178,683.40 183,300.55 86,961.08 83,352.06 15,537.73 15,775.01 (7,590.11) (10,969.58) 273,592.10 271,458.04
Segment liabilities 103,168.78 111,456.35 39,322.59 41,383.17 9,573.81 11,768.24 (7,250.91) (10,671.04) 144,814.27 153,936.72
Non-current assets* 120,258.40 124,302.83 55,270.09 54,282.85 1,921.32 2,007.45 - - 177,449.81 180,593.13
Capital Expenditure 4,584.83 18,458.50 2,586.92 2,483.93 202.25 156.55 - - 7,374.00 21,098.98
*Non-current assets consists of property, plant and equipment, capital work-in-progress, intangible assets under development, capital advances, right of use assets and other intangible assets.
Annual Report 2022-23
Apollo Tyres Ltd

Information about major customers None of the individual customer accounted for more than 10% of the consolidated revenue for the years ended March 31, 2023 and March 31, 2022.

 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

20 EVENTS AFTER THE BALANCE SHEET DATE

The Board of Directors have recommended a final dividend of J 4.00 per share amounting to J 2,540.40 Million and a
Special Dividend of J 0.50 per share amounting to J 317.55 Million on occasion of 50th Annual General Meeting (AGM)
of the Company, aggregating to J 4.50 (H3.25) per share amounting to J 2,857.95 Million (H 2,064.08 Million) on equity
shares of H 1/- each for the year, subject to approval from Shareholders.

21 ADDITIONAL INFORMATION, AS REQUIRED UNDER SCHEDULE III TO THE ACT

Share in total
Share in other
Share in profit or (loss) comprehensive
Net assets comprehensive income
for the year ended income or (loss)
as at March 31, 2023 for the year ended
March 31, 2023 for the year ended
March 31, 2023
S. March 31, 2023
Name of the entity
No As a % of As a % of
As a % of As a % of consolidated consolidated
consolidated J Million consolidated J Million other J Million total J Million
net assets profit or (loss) comprehensive comprehensive
income income or (loss)
Company
1 Apollo Tyres Limited 76.88 98,999.03 52.39 5,787.38 4.00 90.99 44.13 5,878.37
Indian subsidiary
2 Apollo Tyres Centre of 0.09 120.78 0.07 7.78 (0.04) (0.99) 0.05 6.79
Excellence Limited
Foreign subsidiaries
3 Apollo Tyres (Greenfield) B.V. 0.02 25.96 - 0.05 - - - 0.05
4 Apollo Tyres Cooperatief 139.45 179,580.30 97.58 10,779.38 8.57 194.96 82.39 10,974.34
U.A. & Others
(refer Note 1 below)
Indian associate
5 KT Telematic Solutions 0.01 17.00 0.02 1.79 - - 0.01 1.79
Private Limited
6 Add / (Less): Effect of (116.45) (149,965.24) (50.06) (5,530.02) 87.47 1,989.27 (26.58) (3,540.75)
GAAP, Consolidation
adjustments / eliminations
Total 100.00 128,777.83 100.00 11,046.36 100.00 2,274.23 100.00 13,320.59

Note 1 Apollo Tyres Cooperatief U.A. and Others:

J Million
Share in total
Share in other
Share in profit comprehensive
Net assets comprehensive
S. or (loss) for the income or (loss)
Name of the entity as at March income for the
No year ended for the year
31, 2023 year ended
March 31, 2023 ended
March 31, 2023
March 31, 2023
1 Apollo Tyres Cooperatief U.A. (Apollo Coop) 70,141.62 456.33 - 456.33
2 Apollo (South Africa) Holdings (Pty) Ltd (ASHPL) 303.26 0.42 - 0.42
3 Apollo Tyres Africa (Pty) Ltd 220.02 72.26 - 72.26
4 Apollo Tyres (Thailand) Limited 95.47 (163.62) - (163.62)
5 Apollo Tyres (Middle East) FZE 23.54 (249.82) - (249.82)
6 Apollo Tyres Holdings (Singapore) Pte Ltd (ATHS) 3,047.91 775.33 - 775.33
7 Apollo Tyres (Malaysia) SDN BHD 5.52 - - -
8 Apollo Tyres (UK) Holdings Ltd (Formerly 1,923.02 60.23 - 60.23
Apollo Tyres (UK) Pvt Ltd) (ATUK)
9 Apollo Tyres (London) Pvt Ltd 1,061.34 - - -
10 Apollo Tyres Global R&D B.V. 516.29 213.17 - 213.17
11 Apollo Tyres (R&D) GmbH 207.45 20.03 - 20.03
(Formerly Apollo Tyres (Germany) GmbH)
12 Apollo Tyres AG 583.11 143.68 - 143.68
13 Apollo Tyres Do (Brasil) Ltda (4.23) 2.17 - 2.17
14 Apollo Tyres (Europe) B.V. 44,362.75 3,926.37 - 3,926.37
(Formerly Apollo Tyres B.V.) (ATEU)
15 Apollo Tyres (Hungary) Kft. (ATH Kft) 34,115.71 1,434.44 - 1,434.44
16 Apollo Tyres (NL) B.V. 16,418.39 3,051.63 - 3,051.63
(Formerly Apollo Vredestein B.V.) (ATNL)

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Annual Report 2022-23

21 ADDITIONAL INFORMATION, AS REQUIRED UNDER SCHEDULE III TO THE ACT (Contd.)

J Million
Share in total
Share in other
Share in profit comprehensive
Net assets comprehensive
S. or (loss) for the income or (loss)
Name of the entity as at March income for the
No year ended for the year
31, 2023 year ended
March 31, 2023 ended
March 31, 2023
March 31, 2023
17 Apollo Tyres (Germany) GmbH (Formerly 3,582.43 289.18 180.94 470.12
Apollo Vredestein GmbH) (AT GmbH)
18 Apollo Tyres (Nordic) A.B. 97.51 8.35 - 8.35
(Formerly Apollo Vredestein Nordic A.B.)
19 Apollo Tyres (UK) Sales Ltd 270.36 11.52 - 11.52
(Formerly Apollo Vredestein (UK) Limited)
20 Apollo Tyres (France) SAS 205.02 7.06 - 7.06
(Formerly Apollo Vredestein France SAS)
21 Apollo Tyres (Belux) SA 160.73 40.82 - 40.82
(Formerly Apollo Vredestein Belux)
22 Apollo Tyres (Austria) Gesellschaft m.b.H. 53.09 24.93 - 24.93
(Formerly Apollo Vredestein Gesellschaft
m.b.H.)
23 Apollo Tyres (Schweiz) AG 302.42 12.02 - 12.02
(Formerly Apollo Vredestein Schweiz AG)
24 Apollo Tyres Iberica S.A.U. 515.12 32.97 - 32.97
(Formerly Apollo Vredestein Iberica SAU)
25 Apollo Tires (US) Inc. 263.83 501.14 - 501.14
(Formerly Apollo Vredestein Tires Inc.)
26 Apollo Tyres (Hungary) Sales Kft (Formerly 27.83 61.29 - 61.29
Apollo Vredestein Kft) (AT Kft)
27 Apollo Tyres (Polska) Sp. Z.o.o. (Formerly 216.55 23.36 - 23.36
Apollo Vredestein Opony Polska Sp. Z.o.o.)
28 Vredestein Consulting B.V. 283.11 0.90 - 0.90
29 Finlo B.V. (20.05) - - -
30 Reifencom GmbH, Hannover 416.11 16.53 14.02 30.55
31 Reifencom Tyre (Qingdao) Co., Ltd. (1.29) (0.65) - (0.65)
32 Saturn F1 Pvt Ltd 186.36 7.34 - 7.34
Total 179,580.30 10,779.38 194.96 10,974.34

Share in total
Share in other
Share in profit or (loss) comprehensive
Net assets comprehensive income
for the year ended income or (loss)
as at March 31, 2022 for the year ended
March 31, 2022 for the year ended
March 31, 2022
S. March 31, 2022
Name of the entity
No As a % of As a % of
As a % of As a % of consolidated consolidated
consolidated J Million consolidated J Million other J Million total J Million
net assets profit or (loss) comprehensive comprehensive
income income or (loss)
Company
1 Apollo Tyres Limited 80.99 95,184.74 40.88 2,610.64 (6.65) 71.34 50.48 2,681.98
Indian subsidiary
2 Apollo Tyres Centre of 0.04 48.85 (0.02) (1.08) - - (0.02) (1.08)
Excellence Limited
Foreign subsidiaries
3 Apollo Tyres (Greenfield) B.V. 0.02 24.44 0.01 0.37 - - 0.01 0.37
4 Apollo Tyres Cooperatief 138.18 162,390.36 198.63 12,684.42 (5.46) 58.54 239.85 12,742.96
U.A. & Others
(refer Note 1 below)
Indian associate
5 KT Telematic Solutions 0.01 15.21 0.02 1.59 - - 0.03 1.59
Private Limited
6 Add / (Less): Effect of (119.24) (140,142.28) (139.52) (8,909.94) 112.11 (1,203.02) (190.35) (10,112.96)
GAAP, Consolidation
adjustments / eliminations
Total 100.00 117,521.32 100.00 6,386.00 100.00 (1,073.14) 100.00 5,312.86

374
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

21 ADDITIONAL INFORMATION, AS REQUIRED UNDER SCHEDULE III TO THE ACT (Contd.)

Note 1 Apollo Tyres Cooperatief U.A. and Others:

J Million
Share in total
Share in other
Share in profit comprehensive
Net assets comprehensive
S. or (loss) for the income or (loss)
Name of the entity as at March income for the
No year ended for the year
31, 2022 year ended
March 31, 2022 ended
March 31, 2022
March 31, 2022
1 Apollo Tyres Cooperatief U.A. (Apollo Coop) 65,671.54 4,767.58 - 4,767.58
2 Apollo (South Africa) Holdings (Pty) Ltd (ASHPL) 340.79 0.06 - 0.06
3 Apollo Tyres Africa (Pty) Ltd 168.38 56.43 - 56.43
4 Apollo Tyres (Thailand) Limited 254.22 (26.81) - (26.81)
5 Apollo Tyres (Middle East) FZE 257.62 (134.33) - (134.33)
6 Apollo Tyres Holdings (Singapore) Pte Ltd (ATHS) 2,494.42 655.98 - 655.98
7 ATL Singapore Pte Ltd. - 4.99 - 4.99
8 Apollo Tyres (Malaysia) SDN BHD 5.35 (27.24) - (27.24)
9 Apollo Tyres (UK) Holdings Ltd (Formerly 1,830.94 54.39 - 54.39
Apollo Tyres (UK) Pvt Ltd) (ATUK)
10 Apollo Tyres (London) Pvt Ltd 1,044.76 - - -
11 Apollo Tyres Global R&D B.V. 272.81 166.96 - 166.96
12 "Apollo Tyres (R&D) GmbH 175.52 16.91 - 16.91
(Formerly Apollo Tyres (Germany) GmbH)"
13 Apollo Tyres AG 468.06 112.76 - 112.76
14 Apollo Tyres Do (Brasil) Ltda (6.41) 1.52 - 1.52
15 Apollo Tyres (Europe) B.V. 37,895.54 2,936.52 - 2,936.52
(Formerly Apollo Tyres B.V.) (ATEU)
16 Apollo Tyres (Hungary) Kft. (ATH Kft) 32,644.73 1,264.06 - 1,264.06
17 Apollo Tyres (NL) B.V. 13,679.72 2,521.86 - 2,521.86
(Formerly Apollo Vredestein B.V.) (ATNL)
18 Apollo Tyres (Germany) GmbH (Formerly 3,088.19 223.79 52.23 276.02
Apollo Vredestein GmbH) (AT GmbH)
19 Apollo Tyres (Nordic) A.B. 90.85 20.71 - 20.71
(Formerly Apollo Vredestein Nordic A.B.)
20 Apollo Tyres (UK) Sales Ltd 254.30 24.98 - 24.98
(Formerly Apollo Vredestein (UK) Limited)
21 Apollo Tyres (France) SAS 179.40 37.98 - 37.98
(Formerly Apollo Vredestein France SAS)
22 Apollo Tyres (Belux) SA 110.55 45.39 - 45.39
(Formerly Apollo Vredestein Belux)
23 Apollo Tyres (Austria) Gesellschaft m.b.H. 25.02 42.98 - 42.98
(Formerly Apollo Vredestein Gesellschaft m.b.H.)
24 Apollo Tyres (Schweiz) AG 279.82 10.34 - 10.34
(Formerly Apollo Vredestein Schweiz AG)
25 Apollo Tyres Iberica S.A.U. 452.69 19.41 - 19.41
(Formerly Apollo Vredestein Iberica SAU)
26 Apollo Tires (US) Inc. (229.43) (196.98) - (196.98)
(Formerly Apollo Vredestein Tires Inc.)
27 Apollo Tyres (Hungary) Sales Kft (Formerly (38.99) (56.21) - (56.21)
Apollo Vredestein Kft) (AT Kft)
28 Apollo Tyres (Polska) Sp. Z.o.o. (Formerly 181.66 23.95 - 23.95
Apollo Vredestein Opony Polska Sp. Z.o.o.)
29 Vredestein Consulting B.V. 266.11 (0.01) - (0.01)
30 Finlo B.V. (18.90) - - -
31 Reifencom GmbH, Hannover 375.83 110.12 6.31 116.43
32 Reifencom Tyre (Qingdao) Co., Ltd. (0.63) 0.60 - 0.60
33 Saturn F1 Pvt Ltd 175.90 5.73 - 5.73
Total 162,390.36 12,684.42 58.54 12,742.96

375
 Apollo Tyres Ltd
Annual Report 2022-23

22 INFORMATION ON DETAILS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186

OF THE ACT READ WITH COMPANIES (MEETINGS OF BOARD AND ITS POWERS) RULES, 2014
i) Details of investments made are given in note B2 and B3.*

ii) There are no loans / guarantees given by the Company (other than on behalf of wholly owned subsidiary) in accordance
with Section 186 of the Act read with rules issued thereunder.

* All transactions are in the ordinary course of business

23 Ageing of Trade Payables

H Million
As at March 31, 2023
Outstanding for following periods from due date of payment
Particulars
Less than 1 More than
Unbilled Not due 1-2 years 2-3 years Total
year 3 years
MSME - 306.28 - - - - 306.28
Others 4,929.03 23,411.28 3,840.63 56.09 842.87 152.32 33,232.22
Disputed dues – MSME - - - - - - -
Disputed dues - Others - - - - - - -
Total 4,929.03 23,717.56 3,840.63 56.09 842.87 152.32 33,538.50

H Million
As at March 31, 2022
Outstanding for following periods from due date of payment
Particulars
Less than 1 More than
Unbilled Not due 1-2 years 2-3 years Total
year 3 years
MSME - 337.63 - - - - 337.63
Others 4,953.01 23,009.82 6,001.66 852.34 1.49 153.50 34,971.82
Disputed dues – MSME - - - - - - -
Disputed dues - Others - - - - - - -
Total 4,953.01 23,347.45 6,001.66 852.34 1.49 153.50 35,309.45

Include amount of J 4,176.61 million (J 3,673.63 million) which are interest bearing in nature and payable to banks at the
behest of certain vendors.

24 Ageing of Trade Receivables

H Million
As at March 31, 2023
Outstanding for following periods from due date of payment
Particulars
Less than 6 6 months -1 More than 3
Unbilled Not due 1-2 years 2-3 years Total
months year years
Undisputed trade receivables 49.50 23,128.74 1,569.70 121.91 4.24 2.65 8.60 24,885.34
– considered good
Undisputed trade receivables - - 57.28 50.71 194.38 141.19 422.54 866.10
– which have significant
increase in credit risk
Undisputed trade receivables - - - - - - - -
– credit impaired
Disputed trade receivables – - - - - - - - -
considered good
Disputed trade receivables – - - - - - - - -
which have significant
increase in credit risk
Disputed trade receivables – - - - - - - - -
credit impaired
Total 49.50 23,128.74 1,626.98 172.62 198.62 143.84 431.14 25,751.44

376
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

24 AGEING OF TRADE RECEIVABLES (contd.)

H Million
As at March 31, 2022
Outstanding for following periods from due date of payment
Particulars More
Less than 6 6 months -1
Unbilled Not due months year
1-2 years 2-3 years than 3 Total
years
Undisputed trade receivables 54.83 19,146.68 1,294.37 3.49 3.50 2.19 7.86 20,512.92
– considered good
Undisputed trade receivables - - 191.19 16.79 138.21 60.79 451.64 858.62
– which have significant
increase in credit risk
Undisputed trade - - - - - - - -
receivables – credit impaired
Disputed trade receivables – - - - - - - - -
considered good
Disputed trade receivables - - - - - - - -
– which have significant
increase in credit risk
Disputed trade receivables – - - - - - - - -
credit impaired
Total 54.83 19,146.68 1,485.56 20.28 141.71 62.98 459.50 21,371.54

i) Trade receivables are non-interest bearing and are generally on terms of 0 to 180 days.

ii) Amount received from customer under recurring advance scheme (RAS) have been reclassified from trade receivable to
other current liabilities (Note B21) and provision for schemes & discounts is reclassified from other current liabilities (Note
B21) to trade receivables.

25 Capital Work In Progress (CWIP) and Intangible Assets Under Development

a) Ageing schedule
H Million
As at March 31, 2023
Amount in CWIP for a period of
Particulars Less than 1 More than 3
1-2 years 2-3 years Total
year years
Capital work in progress 1,789.31 92.89 44.96 66.43 1,993.59
Intagible assets under development 179.00 192.64 160.39 - 532.03
Total 1,968.31 285.53 205.35 66.43 2,525.62
H Million
As at March 31, 2022
Amount in CWIP for a period of
Particulars
Less than 1 More than 3
1-2 years 2-3 years Total
year years
Capital work in progress 4,437.61 661.33 247.71 600.74 5,947.39
Intagible assets under development 114.83 13.86 104.15 2.11 234.95
Total 4,552.44 675.19 351.86 602.85 6,182.34
b) Changes in the carrying value of capital work in progress and intangible assets under development
H Million
Intangible
Capital work-in-
Particulars assets under Total
progress
development
Carrying value
As on April 01, 2021
Additions 10,686.50 378.62 11,065.12
Capitalised 20,150.25 948.73 21,098.98
As on March 31, 2022 24,889.36 1,092.40 25,981.76
Additions 5,947.39 234.95 6,182.34
Capitalised 6,147.58 1,226.42 7,374.00
As on March 31, 2023 10,101.38 929.34 11,030.72
1,993.59 532.03 2,525.62

c) There are no projects which are temporarily suspended

d) There is no project in CWIP, whose completion is overdue or has exceeded its cost compared to its original plan.

377
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Annual Report 2022-23

26 Reconciliation of Liabilities from Financing Activities

H Million
Non cash changes
As at As at
Cash Foreign
Particulars April 01, Interest New March 31,
flows exchange Others
2022 expense leases 2023
movement*
Non-current borrowings 53,097.05 (4,064.99) 980.58 - - 117.83 50,130.47
(including current
maturities)
Current borrowings 8,839.55 (3,413.42) 314.32 - - 5.58 5,746.03
Lease liability 8,672.55 (2,576.75) 167.23 468.18 1,734.92 (137.33) 8,328.80

H Million
Non cash changes
As at As at
Cash Foreign
Particulars April 01, Interest New March 31,
flows exchange Others
2021 expense leases 2022
movement*
"Non-current borrowings 61,022.59 (7,637.12) (364.54) - - 76.12 53,097.05
(including current
maturities)
Current borrowings 3,033.43 5,761.31 45.48 - - (0.67) 8,839.55
Lease liability 9,279.10 (2,694.07) (74.87) 511.81 1,720.21 (69.63) 8,672.55
* Foreign exchange movement for the Company is hedged by derivative instrument and includes currency translation impact for subsidiaries arising out of consolidation.

27 The Group's revenue disaggregated by geographical markets has been disclosed in note C19.
Reconciling the amount of revenue recognised in the consolidated statement of profit and loss with the contracted price
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Revenue as per contracted price (as invoiced) 252,710.62 215,256.10
Reduction towards variable consideration components (11,487.38) (9,447.96)
Revenue from contract with customers 241,223.24 205,808.14

Contract balances
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Trade receivables 24,885.34 20,512.92
Advances received / credit balance from customers 10,927.92 10,891.23

The Group receives payment from customers based on a billing schedule, as established in the contracts with customers. Trade
receivable are recognised when the right to consideration becomes unconditional. Contract liability relates to payments
received in advance of performance under the contract. Contract liabilities are recognised as revenue as (or when) the Group
perform under the contract.

28 a) During the current year, one of the subsidiary companies has reassessed impairment loss recognized in the earlier
period. Consequently, a part of the recognised loss amounting to J 225.77 million [H 141.10 million in property, plant
and equipment and H 84.67 in other assets] has been written back and presented as an exceptional item in these
financial statements.

b) The Company and other subsidiaries in APMEA had carried out an employee re-organisation exercise for its
employees. The amount (including foreign exchange) paid to the employees who opted for this scheme aggregated
to J Nil (H 59.08 Million) during the year ended March 31, 2023, has been disclosed as an exceptional item.

378
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

29 Earnings Per Share (EPS) – The Numerator And Denominator Used to Calculate Basic and Diluted
Earnings Per Share:
H Million
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Basic and diluted earnings per share
Profit attributable to the equity shareholders used as numerator (H Million) - (A) 11,046.36 6,386.00
The weighted average number of equity shares outstanding during the year 635,100,946 635,100,946
used as denominator - (B)
Basic / Diluted earnings per share (H) – (A) / (B) (Face value of H 1 each) 17.39 10.06

30 Previous year's figures has been regrouped and / or reclassed wherever necessary to confirm to the current year's
groupings and classifications.

31 Other Statutory Information

(i) The Group do not have any Benami property, where any proceeding has been initiated or pending against the Group
for holding any Benami property.

(ii) The Group do not have any transactions with companies struck off.

(iii) The Group do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Group has not traded or invested in crypto currency or virtual currency during the financial year.

(v) The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the group (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Group shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The Group does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961.

(viii) The Group has not been declared wilful defaulter by any bank or financial institution or any of the lender.

(ix) The quarterly returns or statements of current assets filed by the Group with banks or financial institutions are in
agreement with the books of accounts.

As per our report of even date

For S.R. Batliboi & CO. LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No. 301003E/E300005 ONKAR KANWAR NEERAJ KANWAR VINOD RAI
Chairman Vice Chairman & Managing Director
Director
per Pankaj Chadha DIN 00058921 DIN 00058951 DIN 00041867
Partner
Membership No. 091813 GAURAV KUMAR SEEMA THAPAR
Chief Financial Officer Company Secretary
Place: Gurugram Place: Amsterdam Membership No - FCS 6690
Date: May 9, 2023 Date: May 9, 2023

379
380
Form AOC 1
(pursuant to first proviso to sub section (3) of sec. 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries / associates / joint venture

Part A: Subsidiaries
H Million
As at March 31, 2023 For the year ended March 31, 2023
Date on which
Exchange Investment Turnover
S. subsidiary Reporting Profit Profit
Name of the Subsidiary rate as at Share Reserves Total Total (other % of (including Tax
No was acquired / currency before after
31.03.2023 capital & surplus assets liabilities than in Shareholding other expense
incorporated tax tax
subsidiary) income)
1 Apollo Tyres Centre of October 10, 2020 INR 1.00 53.90 66.88 233.33 112.55 - 100% 121.43 10.40 2.62 7.78
Excellence Limited
2 Apollo Tyres (Greenfield) B.V. June 4, 2014 EURO 89.10 3.21 22.75 26.06 0.10 - 100% 0.71 0.05 - 0.05
3 Apollo Tyres Cooperatief U.A. May 1, 2009 EURO 89.10 27,277.43 42,864.19 71,890.37 1,748.75 213.40 100% 498.35 466.55 10.22 456.33
(Apollo Coop)
4 Apollo (South Africa) September 29, ZAR 4.62 - 303.26 303.41 0.15 - 100% 0.70 0.58 0.16 0.42
Holdings (Pty) Ltd (ASHPL) 2006
5 Apollo Tyres Africa (Pty) Ltd July 29, 2013 ZAR 4.62 1,847.51 (1,627.49) 1,049.60 829.58 - 100% 2,264.55 98.10 25.84 72.26
6 Apollo Tyres (Thailand) Limited January 22, 2013 THB 2.40 240.43 (144.96) 678.71 583.24 - 100% 2,767.11 (163.62) - (163.62)
7 Apollo Tyres (Middle East) FZE January 2, 2011 AED 22.38 44.76 (21.22) 768.62 745.08 - 100% 6,348.67 (249.82) - (249.82)
8 Apollo Tyres Holdings September 8, 2010 USD 82.18 1,077.46 1,970.45 8,873.62 5,825.71 - 100% 39,368.24 934.93 159.60 775.33
(Singapore) Pte Ltd (ATHS)
9 Apollo Tyres (Malaysia) SDN March 15, 2016 MYR 18.63 120.78 (115.26) 6.73 1.21 - 100% - - - -
BHD
10 Apollo Tyres (UK) Holdings March 16, 2012 GBP 101.33 1.87 1,921.15 2,146.05 223.03 - 100% 1,523.46 79.10 18.87 60.23
Ltd (Formerly Apollo Tyres
(UK) Pvt Ltd) (ATUK)
11 Apollo Tyres (London) Pvt Ltd December 12, 2014 GBP 101.33 0.10 1,061.24 1,063.17 1.83 - 100% - - - -
12 Apollo Tyres Global R&D B.V. January 2, 2013 EURO 89.10 0.01 516.28 1,113.60 597.31 - 100% 2,918.46 287.29 74.12 213.17
13 Apollo Tyres (R&D) GmbH November 11, 2015 EURO 89.10 2.23 205.22 220.41 12.96 - 100% 301.50 28.87 8.84 20.03
(Formerly Apollo Tyres
(Germany) GmbH)
14 Apollo Tyres AG July 4, 2007 CHF 89.77 336.50 246.61 608.46 25.35 - 100% 305.67 160.13 16.45 143.68
15 Apollo Tyres Do (Brasil) Ltda September 15, 2011 BRL 16.23 12.82 (17.05) 0.24 4.47 - 100% - 2.17 - 2.17
16 Apollo Tyres (Europe) B.V. March 2, 2012 EURO 89.10 1.60 44,361.15 58,661.72 14,298.97 - 100% - 4,948.56 1,022.19 3,926.37
(Formerly Apollo Tyres B.V.)
(ATEU)
17 Apollo Tyres (Hungary) Kft. June 4, 2014 HUF 0.23 24.04 34,091.67 40,844.95 6,729.24 - 100% 23,832.99 1,447.77 13.33 1,434.44
(ATH Kft)
18 Apollo Tyres (NL) B.V. May 15, 2009 EURO 89.10 3.79 16,414.60 33,007.27 16,588.88 - 100% 50,486.53 4,099.11 1,047.48 3,051.63
(Formerly Apollo Vredestein
B.V.) (ATNL)
19 Apollo Tyres (Germany) May 15, 2009 EURO 89.10 45.62 3,536.81 5,436.18 1,853.75 - 100% 13,683.20 438.67 149.49 289.18
GmbH (Formerly Apollo
Vredestein GmbH) (AT
GmbH)
Annual Report 2022-23
Apollo Tyres Ltd
 Overview

Form AOC 1 (Contd.)

Corporate

Part A: Subsidiaries (Contd.)

H Million
As at March 31, 2023 For the year ended March 31, 2023
Date on which
Exchange Investment Turnover
S. subsidiary Reporting Profit Profit
Name of the Subsidiary rate as at Share Reserves Total Total (other % of (including Tax
No was acquired / currency before after
31.03.2023 capital & surplus assets liabilities than in Shareholding other expense
incorporated tax tax
subsidiary) income)
From our
Leadership

20 Apollo Tyres (Nordic) A.B. May 15, 2009 SEK 7.91 7.52 89.99 459.27 361.76 - 100% 1,099.95 9.06 0.71 8.35
(Formerly Apollo Vredestein
Nordic A.B.)
21 Apollo Tyres (UK) Sales Ltd May 15, 2009 GBP 101.33 101.44 168.92 678.43 408.07 - 100% 1,728.21 15.01 3.49 11.52
(Formerly Apollo Vredestein
(UK) Limited)
22 Apollo Tyres (France) SAS May 15, 2009 EURO 89.10 3.74 201.28 957.69 752.67 - 100% 3,875.11 29.66 22.60 7.06
(Formerly Apollo Vredestein
Report

France SAS)
23 Apollo Tyres (Belux) SA May 15, 2009 EURO 89.10 5.52 155.21 613.07 452.34 - 100% 2,903.96 57.05 16.23 40.82
(Formerly Apollo Vredestein
ESG Performance

Belux)
24 Apollo Tyres (Austria) May 15, 2009 EURO 89.10 3.24 49.85 928.86 875.77 - 100% 3,506.30 32.24 7.31 24.93
Gesellschaft m.b.H.
(Formerly Apollo Vredestein
Gesellschaft m.b.H.)
25 Apollo Tyres (Schweiz) AG May 15, 2009 CHF 89.77 201.97 100.45 355.89 53.47 - 100% 1,134.44 14.15 2.13 12.02
(Formerly Apollo Vredestein
Schweiz AG)
Management

26 Apollo Tyres Iberica S.A.U. May 15, 2009 EURO 89.10 276.31 238.81 724.84 209.72 - 100% 2,834.09 58.21 25.24 32.97
(Formerly Apollo Vredestein
Iberica SAU)
Discussion and Analysis

27 Apollo Tires (US) Inc. May 15, 2009 USD 82.18 1,088.95 (825.12) 4,343.20 4,079.37 - 100% 9,403.75 202.19 (298.95) 501.14
(Formerly Apollo Vredestein
Tires Inc.)
28 Apollo Tyres (Hungary) May 15, 2009 HUF 0.23 0.70 27.13 1,031.37 1,003.54 - 100% 1,448.59 70.37 9.08 61.29
Reports

Sales Kft (Formerly Apollo

Statutory

Vredestein Kft) (AT Kft)

29 Apollo Tyres (Polska) Sp. May 15, 2009 PLN 19.06 0.95 215.60 1,113.45 896.90 - 100% 2,572.69 34.55 11.19 23.36
Z.o.o. (Formerly Apollo
Vredestein Opony Polska Sp.
Z.o.o.)
30 Vredestein Consulting B.V. May 15, 2009 EURO 89.10 2.02 281.09 14.22 (268.89) - 100% - 1.21 0.31 0.90
31 Finlo B.V. May 15, 2009 EURO 89.10 0.80 (20.85) - 20.05 - 100% - - - -
Financial

32 Reifencom GmbH, Hannover January 1, 2016 EURO 89.10 66.82 349.29 5,632.15 5,216.04 - 100% 17,521.37 24.37 7.84 16.53
Statements

33 Reifencom Tyre (Qingdao) January 1, 2016 CNY 11.96 5.90 (7.19) - 1.29 - 100% 2.46 (0.65) - (0.65)
Co., Ltd.
34 Saturn F1 Pvt Ltd September 16, 2016 GBP 101.33 323.00 (136.64) 197.07 10.71 - 100% 176.30 8.35 1.01 7.34

381
 Apollo Tyres Ltd
Annual Report 2022-23

Form AOC 1 (Contd.)

Part A: Subsidiaries (Contd.)

Note 1 Name of subsidiaries which are yet to commence operations/non-operating - Finlo B.V.
Note 2 ATL Singapore Pte Ltd., subsidiary was liquidated w.e.f. 08.08.2022
Note 3 Financial period for all the subsidiaries is April to March.
Note 4 Details of dividend proposed by subsidiaries to their parent entity as on March 31, 2023 are as under:

Name of the subsidiary H Million

Apollo Tyres (Hungary) Kft. (ATH Kft) 3,508.50
Apollo Tyres AG 145.87

Part B: Joint Venture & Associate

S. KT Telematic Solutions CSE Deccan Solar Private

Name of the Associate
No. Private Limited Limited
1 Date on which the Associate was associated February 21, 2018 January 14, 2022
or acquired
2 Latest Audited Balance Sheet date March 31, 2023 March 31, 2023
3 Shares of associate entity held by the company at the
year end
No. 3,334 1,200,000
Extent of Holding % 25.00% 27.27%
Amount of Investment in associate entity (H Million) 45.01 96.00
4 Description of how there is significant influence Refer note 1 below Refer note 2 below
5 Reason why the associate is not consolidated Not applicable Refer note 2 below
6 Net worth attributable to Shareholding as per latest 17.00 91.01
Balance Sheet (J Million)
7 Profit / (Loss) for the year
i. Considered in Consolidation (H Million) 1.79 -
ii. Not Considered in Consolidation (H Million) NA NA

Note 1 By virtue of significant influence in certain business decisions under an agreement, KT Telematic Solutions Private
Limited had become an associate of the Company w.e.f. February 21, 2018

Note 2 During the previous year, the Company had invested H 93.30 million by purchasing 11,66,250 equity shares and in
current year further invested H 2.70 million by purchasing 33,750 equity shares of CSE Deccan Solar Private Limited,
totalling equity stake 27.27% as on March 31, 2023, to get a guaranteed supply of 40 million units of electricity per
annum for its Chennai Plant. This amount is refundable after the tenure. Consequent to this investment, CSE Deccan
Solar Private Limited has been considered as an Associate Company as per the requirement of Companies Act, 2013.
However, as per the provisions of IND AS 28 - Investment in Associates and Joint Ventures, the said investment made
by the Company is not considered as an investment in associate. Therefore, this investment has been accounted for
as per the provisions of IND AS 109 Financial Instruments.

382
 Corporate From our ESG Performance Management Statutory Financial
Overview Leadership Report Discussion and Analysis Reports Statements

Form AOC 1 (Contd.)

Part B: Joint Venture & Associate (Contd.)

Note 3 The 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 joint venture.

Note 4 Name of associates or joint ventures which are yet to commence operations

None

Note 5 Name of associates or joint ventures which have been liquidated or sold during the year

None

For and on behalf of the Board of Directors

ONKAR KANWAR NEERAJ KANWAR VINOD RAI

Chairman Vice Chairman & Director
Managing Director
DIN 00058921 DIN 00058951 DIN 00041867

GAURAV KUMAR SEEMA THAPAR

Chief Financial Officer Company Secretary
Place: Amsterdam Membership No - FCS 6690
Date: May 9, 2023

383
Notes
 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, 2023
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 48 25 19.55 Philips Electronics India Ltd General Manager
2 Mr. Anand Sathyamoorthy Unit Head - Chinnapanduru Plant B.Sc January 13, 2006 49 28 11.64 MRF Ltd. Senior Supervisor
3 Mr. Aneet Chaku Head - Customer Service (APMEA) Executive Program in Mgmt, BBH(HM) September 8, 2015 53 32 15.23 Vodafone India Limited AVP - Quality
4 Mr. Ankur Thakur Head - Product Marketing (Passenger Vehicle) MBA, BBA December 12, 2016 46 20 11.97 Reliance Retail (Online Fashion E.Com) V.P. Marketing
5 Mr. Davendra Mittal Head - Finance MBA, BE March 21, 2013 54 29 17.13 Lanco Infratech Ltd. Sr. Vice President - Projects Finance
6 Mr. Deepak Gupta Head - Business Quality BE, Diploma in Business Mgnt. July 22, 2014 54 31 12.84 Frigoglass India Pvt Ltd Head - Quality & Product Integrity
7 Mr. Dominic George Martin Head - Product Marketing (CV/OHT) MBA, B.Com November 1, 2001 56 30 12.50 MRF Ltd. District Manager
8 Mr. Gaurav Kumar Chief Financial Officer B.Tech., MBA March 1, 2004 53 30 89.46 HCL Technologies Ltd. AVP - Mergers & Acquisitions
9 Mr. George Oommen Unit Head - Kerala Plants BE August 30, 2007 60 38 13.77 Carborundum Universal Limited AGM
10 Mr. Harish Bahadur Head - Corporate Investments B.Com(H) February 2, 1975 70 48 28.63 - -
11 Mr. Hideki Otsuji Head - Two Three Wheeler (R&D) BE June 1, 2020 59 36 14.08 Sumitomo Rubber Industries Ltd. Manager - Test Department
12 Mr. Hisashi Ishibashi Head - Business Development (OE) M.Tech (Mechanical) January 1, 2020 63 38 18.61 Bridgestone Corporation General Manager
13 Mr. K. Prabhakar Chief - Projects B.Tech., PGD Ind. Engg. ICWA March 1, 2019 68 42 48.66 Apollo Tyres (Hungary) KFT Managing Director
14 Mr. K Sunil Group Head - Mfg Strategy & Developmt (APMEA) B. Tech July 1, 1987 59 36 13.15 - -
15 Mr. Neeraj Kanwar Vice Chairman & Managing Director B. Sc, ACMS February 24, 1997 51 28 284.12 Apollo Finance Ltd Joint President
16 Mr. Pinaki Bhattacharjee Head - Corporate Procurement MBA, B.A. January 1, 2003 54 31 10.74 Goodyear India Ltd Asst. Manager Purchase
17 Mr. Piush Bansal Unit Head - Limda Plant B.E. (Mech.), PGDBM August 20, 2013 57 37 27.65 Moser Baer India Vice President
18 Mr. Praveen Tripathi Group Head - Corporate Procurement MBA, ICWA October 15, 1990 53 33 22.94 - -
19 Mr. Praveen Moon Group Head - Internal Systems CA, B.Com(H) October 16, 2012 49 29 16.63 Pricewaterhouse Coopers Pvt Ltd Associate Director
20 Mr. Prem Prakash Sharma Head - HR - Limda Plant PGDBM, PGDBA July 30, 2013 59 36 14.19 India Yamaha Motor Pvt Ltd Group Head - GA, Personnel & HR
21 Mr. P. K. Mohamed Chief Advisor - Research & Development B.Sc, LPRI February 19, 2001 82 59 39.17 Ceat Ltd. Eexecutive Director - Technical
22 Mr. Rajesh Dahiya Vice President - Marketing & Sales (ISO) B.Com, MBA, August 20, 1990 56 34 44.01 Indian Express Business Executive
23 Mr. Ravi Kumar Shingari Group Head-Corporate Taxation & Accounts CA, B.Com(H) September 28, 2018 44 23 23.43 KPMG National Head - India Japan Corridor
24 Ms. Rinika Grover Head - Sustainability & CSR M.Sc., B.Com(H) September 29, 2014 50 24 10.27 Raleigh International Dy. Head of Programmes & Policy
25 Ms. Ritu Kumar Group Head - Corporate Strategy & Legal CA, CS April 19, 2006 49 23 18.30 American Express Team Leader
26 Mr. Rohit Arora Group Head - Accounts (APMEA) CA September 19, 2000 51 29 23.26 ACC Ltd Asst. Manager - Accounts
27 Mr. Sandeep Mathur Group Head - OE & Inst. Business MBA, M.Sc July 25, 1994 54 29 15.52 - -
28 Mr. Satish Sharma President (APMEA) & Whole-time Director BE, PGDBM October 15, 1997 55 34 99.70 JK Industries Ltd Manager
29 Ms. Seema Thapar Company Secretary & Compliance Officer LLB, M.Com, FCS October 1, 1991 57 33 10.21 Mohan Exports (India) Pvt. Ltd. Asst. Company Secretary
30 Mr. S.K.P. Amarnath Group Head - R&D (Asia) B.Tech, B.Sc February 21, 2000 54 31 20.42 Monotond Tyres Ltd. Dy. Manager
31 Mr. Suresh Damodaran Head - OHT MBA, B.Tech February 16, 2018 63 40 13.16 ATC Tires (P) Ltd Exe - Vice President
32 Mr. Thomas Mathew C. Unit Head - Chennai BE/ B.Tech, MBA July 1, 1987 60 36 19.33 - -
33 Mr. Yoichi Sato Chief - Quality & Safety Officer B.Sc (Engg) June 1, 2020 66 26 48.31 SWOT Management Solutions Private Limited Director - Business Quality

Employed part of the year

1 Mr. Anil Chopra Group Head - CoE B.Com, ACA August 18, 1992 68 42 35.69 Altos India Ltd Manager - Finance
2 Mr. Chandrasekhar Velagapudi Group Head-Global IT Infra. & PMO M.Sc., B.Sc April 4, 2022 57 34 19.46 JSW Steel Limited Vice President - IT
3 Mr. Dipankar Ghosh Group Head - HR (APMEA) MBA, B.A. August 1, 2022 50 27 12.42 Bajaj Consumer Care Ltd CHRO
4 Ms. Harshita Pande Group Head - HR (APMEA) M.Sc (Sustainability), Dip. In CSR March 18, 2002 56 30 12.00 Discovery Communications India Associate Director
5 Ms. Leenaja EM Janardanan Nambiar Group Head - Corporate Controlling CIMA October 1, 2018 52 27 18.55 Apollo Tyres Global R&D B.V. Head Manufacturing Controling
6 Ms. Neelima Kataria Head - HR Business Partner PGDBM January 9, 2017 50 15 1.84 HT Media Ltd Head HR
7 Mr. Onkar Kanwar Chairman & Managing Director B.Sc, Bach. of Admn. February 1, 1988 80 62 270.59 BST Manufacturing Ltd Managing Director
8 Mr. Rajasekhara Reddy Avthu Group Head - SCM (APMEA) PGDM, B.Tech September 1, 2022 47 24 10.36 Glenmark Pharmaceuticals Limited Vice President
9 Mr. Saurabh Kumar Head - Global Enterprise Application PGP in Mgnt, BE November 1, 2022 42 16 4.23 DIAGEO Business Services Pvt Ltd D&T Capability Owner - SAP
10 Mr. Vikram Garga Group Head - Marketing (APMEA) MBA, BE July 11, 2022 51 23 19.50 Mahindra and Mahindra Limited Vice President

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 : Amsterdam
Date : May 9, 2023 ONKAR KANWAR
Chairman
DIN: 00058921
Apollo Tyres Ltd

Corporate Office

Apollo House
7 Institutional Area, Sector 32,
Gurugram 122001, India

T: +91 124 2383002, 0124 2721000

Registered Office

3rd Floor, Areekal Mansion,

Panampilly Nagar,
Kochi 682036, India

T: +91 484 4012046

F: +91 484 4012048

www.apollotyres.com
E: [email protected]
CIN: L25111KL1972PLC002449