- Apollo Tyres Ltd is an Indian tire manufacturing company headquartered in Gurgaon, India. It has a global presence with manufacturing facilities in Asia, Europe and Africa. - The document analyzes Apollo's financial statements from 2011-2013, finding that gross and net profit margins increased from 2011 to 2013 while inventory turnover ratio also increased, indicating more frequent sales. - A conclusion is that Apollo Tyres is a good long-term investment as the company's performance and global presence continues to grow through acquisitions like the purchase of Cooper Tire & Rubber in 2013.

1. SUBMITTED TO
Prof. DEEPAK AGARWAL
SUBMITTED BY:-
YOUNIS AHMAD
M.COM(AFC)
YEAR 2013-13
INVENTORY ACCOUNTING
MANAGEMENT AND CONTROLL

2. Apollo Tyres Ltd
 Apoll0 tyres Ltd was the worlds 17th biggest tyre
manufacturing company with an annual consolidated
revenue of RS 121.5 billion in 2011 Apollo tyre Ltd was
formed in the year 1972 its corporate head quarter is in
gorgon Apollo house 7 institutional area sector 32,gurgaon
Haryana Apollo tyre is a manufacturing industry Region
Asia Country India
 FOUNDED-1972
 CEO-ONKAR SINGH KANWAR
 HEAD QUATER-GURGAON INDIA
 REGION- ASIA
 COUNTRY-INDIA
 WWW.APOLLOTYRES.COM

3. Balance sheet of Apollo tyre Ltd
Year 2013 2012 2011
Sources of funds In crores In crores In crores
Total share capital 50.41 50.41 50.41
Equity share capital 50.41 50.41 50.41
Share application money 10.70 - -
Preference share capital - - -
Reserves 2280.24 1994.07 1842.03
Revaluation Reserves - 3.12 3.12
Nett worth 2341.43 2047.60 1895.56
Secured loans 1088.41 1483.69 1093.30
Unsecured loans 789.37 664.53 814.67
Total debt 1877.78 2148.22 1907.97
TOTALL 4219.21 4195.82 3803.53

4. CONTINUE...
MARCH
2013
MARCH
2012
MARCH
2011
Application of funds
Gross block 4377.48 3947.32 3299.13
Less accumulated depreciation 1306.12 1096.69 915.55
Nett block 3071.36 2850.63 2383.58
Capital-work-in-progress 248.97 396.89 502.83
investment 612.70 562.65 559.35
inventories 1120.83 1111.42 1136.33
Sundry debtors 273.14 363.91 204.28
Cash and bank balance 154.19 108.98 133.65
Total current assets 1548.16 1584.31 1474.26
Loans and advances 356.03 376.66 889.36
Fixed deposits - - -
Totall current assets loans and
advances
1904.19 1967.50 2371.23

5. CONTINUE...
Current liabilities 1426.91 1408.54 1277.81
provisions 191.00 173.39 735.65
Totall current liabilities and
provisions
1618.00 1581.93 2013.46
Nett current assets 286.19 385.66 357.77
Misseleonous expenses - - -
Totall assets 4219.22 4195.83 3803.53
Contingent liabilities 382.17 324.97 697.77
Book value (Rs ) 46.24 40.56 37.55

6. Annual Result in short
FIGURES IN CRORES 2013 2012 2011
SALES 8507.49 8157.88 5490.74
OPERATING PROFIT 898.19 666.31 533.76
GROSS PROFIT 694.59 443.21 410.90
NETT PROFIT 312.53 181.33 198.25
Manufacturing expenses 272.54 334.87 268.39

7. Percentage of items in total
current assets
0%
20%
40%
60%
80%
100%
2013 2012 2011
72.38 70.15
77
17.64 22.97
13.85
9.98 6.88 3
inventory sundry debtors cash and bank balance

8. Interpretation of current assets
 Inventory consists nearly 70% of current assets so a
company must control over it because it block a very
large amount of cash if company not control over it
causes loss for company so that company must
maintain optimum level of stock
 Because the company imports raw material from Japan
and also export their finished products to different
countries

9. Financial Ratios
March
2013
March
2012
March
2011
Gross profit margin % 8.17 5.43 7.50
Nett profit margin % 3.67 2.22 3.61
Operating profit margin 10.55 8.17 9.75

10. Formulas for calculating these
ratios
 Gross profit ratio= gross profit
 Nett sales
 Operating profit margin=operating income
 Nett sales
 Nett profit margin (return on sales)=Nett income
 Nett sales

11. ANALYSIS OF FINANCIAL RATIOS
 It is obvious that every company try to grow and
increase their sales to increase their profitability for
which they take appropriate steps at appropriate time
in the same case Apollo tyres also perform these
activities but the reason for low profitability in year
2012 are stock adjustment and raw material price.
 Japanese currency exchange rate increase as on indian
rupee in 2011-12.

12. Diagram presentation of financial
ratios
Jan/11 Jan/12 Jan/13
7.9
6.48
7.94
3.61
2.21
3.63
11.07
9.6
11.36
Chart Title
Gross profit margin Nett profit margin operating profit margin

13. Liquidity ratios
March
2013
March
2012
March
2011
Current ratio 1.06 1.03 0.93
Current ratio=current assets
current liability
current assets amount in (crores)
current liability (crores)
1548.16
1426.91
1584.31
1408.54
1474.26
1277.81

14. Analysis of current ratio
 The current ratio of the company is to determine the
company ability to pay its current liability as per the
analysis the company are coming know in a position
to pay its current liability from current assets it is not
necessary that a company of which a current ratio are
below 2:1 is an insolvent company but it must not be
very less like 0.50:1

15. DIAGRAM OF LIQUIDITY RATIOS
0.93
1.03 1.06
0.27
0.34 0.3
Jan/11 Jan/12 Jan/13
Chart Title
CURRENT RATIO QUICK RATIO

16. QUICK RATTI = QUICK ASSETS
CURRENT LIABILITY
Liquid asset ratio 2013 2012 2011
Quick ratio
Quick assets (crores)
Current liability (crores)
0.30
427.33
1426.91
0.34
472.89
1408.54
0.27
337.93
1277.81

17. QUICK RATIO
Quick assets are current assets except inventory and
prepaid expenses the ideal standard for quick ratio is
1:1 the reason for low quick ratio is that the Apollo tyres
is a tyre manufacturing industry in which inventory
consists 70% of current assets which are not very
quick convert like fast moving consumer items but it
tooks a very large time.

18. WORKING CAPITAL RATIO
MARCH
2013
MARCH
2012
MARCH
2011
Inventory turnover ratio(times) 6.78 6.45 5.35
Inventory turnover in days 54 57 68
Cost of goods sold (crores)
Average inventory (crores)
7812.9
1120.83
7714.67
1111.42
5079.84
1136.33

19. Inventory turn over ratio
 A HIGH INVENTORY TURN OVER RATIO IS A
GOOD SIGN FOR COMPANY A HIGH INVENTORY
RATIO INDICATES FREQUENT SALES LOW RATIO
SHOWS POOR SALES OF COMPANY INVENTORY
TURN OVER RATIO= COGS*
 AVG. INVENTORY
 Inventory turn over ratio in days= 365 days
 inventory turn over
 *COGS – COST OF GOODS SOLD=sales-gross profit

20. CONCLUSION
 AFTER THE ANALYSIS OF THE COMPANY FINANCIAL
STATEMENTS WE ANALYSE THE LONG TERM INVESTMENT IN
APOLLO TYRES LTD IS BEST OPPURTUNITY FOR SHARE
HOLDERS AND INVESTORS BECAUSE THE OVERALL
PERFORMANCE OF THE COMPANY GROWS DAY BY DAY .
 IN 12-JUNE-2013 APOLLO PURCHASED U.S BASED COOPER
TYRE AND RUBBER COMPANY FOR ABOUT $2.5 BILLION IN A
DEAL THAT WOULD MAKE THE APOLLO TYRES LTD WORLD’S
7th largest tyre maker .
 The company has manufacturing presence in Asia , Europe and
Africa with 9 modern tyre facilities and export to over 118
countries with the help of well employees work in Apollo tyres
Ltd .there are 16000 employees work in Apollo tyres Ltd

21. Stock exchange listed company
 Apollo tyres ltd company is traded in India on the
Bombay stock exchange , National stock exchange and
Kochi stock exchange with 56.63% of shares held by
the public government entities ,banks and financial
institutions as on June 30 2013.

22. THANKS TO ALL OF YOU