GUJARAT APOLLO INDUSTRIES LIMITED

Made by:-

Chitsimran

11100084

Topics to be discussed:-

Introduction

History

Competitors

Notice

Directors’ Report

Management Discussion & Analysis

Report on Corporate Governance

Auditors’ Report

Balance Sheet

Statement of Profit and Loss

Cash Flow Statement

Notes forming part of the Financial Statements

History:- incorporated on 7th October, 1986

promoted by M/s Apollo Earthmovers Pvt. Ltd. with Gujarat Investment Corporation Ltd. (GIIC),

production in 1987

1992, GIIC disinvested

2005 Bonus in the Ratio of 1:1

2007 Bonus in the Ratio of 1:2

2008 Bonus in the Ratio of 1:2

invested INR 74 millions in Apollo Earthmovers Ltd (AEML) to make it a subsidiary Company.

2009, owned subsidiary, Apollo Maschinenbau GmbH in the Federal Republic Germany

BOARD OF DIRECTORS:-

MR. ANIL T. PATEL

MR. MANIBHAI V. PATEL

MR. ASIT A. PATEL

MR. ANAND A. PATEL

MR. RUPESH P. MEHTA

MR. NAVINCHANDRA V. SHAH

Subsidiary companies:-

49%

18%

8%

8%

3%

2% 2%

2%1% 1% 1% 1% 1% 1% 1% 1% 0%

AIA Engineering

Triveni Turbine

TD Power System

Praj Industries

Elecon Eng

Walchandnagar

Sanghvi Movers

Gujarat Apollo

TRF

Shriram EPC

Windsor

TIL

Action Const

Kabra Extrusion

Eimco Elecon

Tecpro Systems

UB Engineering

Notice:-

ORDINARY BUSINESS:

To receive, consider and adopt Audited Account for the year.

To declare dividend on equity shares.

To appoint a Director

To appoint Auditors

SPECIAL BUSINESS:

To consider and if thought fit to pass with or without modification the Ordinary Resolution:

Directors report:-

Operational review:-

turnover of ` 20,535.37 Lacs against ` 21,777.97 Lacs

expense of ` 17,511.60 Lacs against ` 18,647.74 Lacs in the previous year. The Company’s

Profit before exceptional items and tax was ` 2,653.78 Lacs Previous Year ` 2,809.41

profit on sale of investment amounting to ` 359.70 Lacs

net profit of ` 2,170.73 Lacs as compared to net profit of ` 1,824.79 Lacs in the previous year.

The EPS of the Company for the year 2012-2013 is ` 13.10.

DISCONTINUING OPERATIONS:

Business Transfer Agreement (BTA)

Ammann Apollo India Private Limited (AAIPL)

Ammann Group holds 70% equity of AAIPL and balance 30% is retained by AEML, wholly owned subsidiary

of GAIL.

RECOGNITION:

awarded for being the “2nd Fastest Growing Construction Equipment Company in India” by ASAPP Media Information Group (Publication – Construction World).

DIVIDEND:

recommend a dividend of ` 10/- per share on Equity Shares.

DEPOSITS:

During the year under review, the Company has accepted deposit from public.

CONSOLIDATED ACCOUNTS:

Accounting Standards- 21 (AS – 21) on the Accounting for investment in Associates.

SUBSIDIARY COMPANIES:

RESPONSIBILITY STATEMENT:

Management discussion report:-

Industry Structure

Main Focus Areas And Applications

Opportunities, Threats, Risk And Concern

Internal Control Systems and their Adequacies

Human Resources

Comments on Financial Performance with respect to Operational Performance:

Cautionary Statement:

Report on Corporate Governance:-

Company’s philosophy on code of governance

Board of directors

Audit committee

Remuneration committee

Shareholders’/ investors’ grievances committee

General body meeting

Means of communication

Auditors report:-

STATUTORY AUDITORS

M/s. ARVIND A.THAKKAR & CO.,

Chartered Accountants,

Ahmedabad

Auditors’ Report:-

true and fair view in confirmity with the accounting principles generally accepted in India:a. in the case of the Balance Sheet,b. in the case of the statement of Profit and Loss,c. in the case of the Cash Flow Statement.

Report on Other Legal and Regulatory Requirement

Companies (Auditor’s Report) Order, 2003'

On the basis of written representation received from the Directors as on March 31, 2013, and taken

on record by the Board of Directors, none of the director is disqualified

Balance sheet:- (liabilities)

Sources Of Funds Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

Total Share Capital 16.58 16.58 16.58 16.58 15.75

Equity Share Capital 16.58 16.58 16.58 16.58 15.75

Share Application Money 0 0 0 0 0.99

Reserves 185.78 180.6 162.17 146.87 114.53

Networth 202.36 197.18 178.75 163.45 131.27

Secured Loans 15.22 24.4 28.61 27.23 17.82

Unsecured Loans 41.06 12.19 17.74 17.81 9.49

Total Debt 56.28 36.59 46.35 45.04 27.31

Minority Interest 0 0 0 5.87 0

Total Liabilities 258.64 233.77 225.1 214.36 158.58

Balance sheet:- (assets)Application Of Funds Mar '13 Mar '12 Mar '11 Mar '10 Mar '09Gross Block 105.05 100.11 93.24 76.84 45.97Less: Accum. Depreciation 21.02 18.17 18.7 14.99 12.65Net Block 84.03 81.94 74.54 61.85 33.32Capital Work in Progress 1.44 0.27 3.8 8.3 8.69Investments 57.03 11.8 7.7 22.26 11.81Inventories 56.57 61.93 68.78 54.14 38.75Sundry Debtors 42.25 51.24 39.76 47.44 34.36Cash and Bank Balance 20.02 14.77 9.92 10.92 10.94Total Current Assets 118.84 127.94 118.46 112.5 84.05Loans and Advances 95.95 73.25 76.2 49.59 56.75Fixed Deposits 0 0 10.97 3.1 0Total CA, Loans & Advances 214.79 201.19 205.63 165.19 140.8Current Liabilities 77.34 54.88 42.84 37.7 31.57Provisions 21.3 6.55 23.75 5.56 4.48Total CL & Provisions 98.64 61.43 66.59 43.26 36.05Net Current Assets 116.15 139.76 139.04 121.93 104.75Total Assets 258.65 233.77 225.08 214.34 158.57

Balance sheet:- (notes)

Contingent Liabilities 31.94 6.45 2.9 0.36 5.38

Book Value (Rs) 122.08 118.96 107.84 98.61 82.71

Reasons for notes:-

Statement of Profit and Loss:-Income Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

Sales Turnover 254.66 289.83 319.89 286.31 266.75

Excise Duty 0 24.43 23.78 17.67 22.97

Net Sales 254.66 265.4 296.11 268.64 243.78

Other Income 16.7 8.34 2.97 -2.26 2.55

Stock Adjustments -2.6 -4.35 16.16 0.31 9.14

Total Income 268.76 269.39 315.24 266.69 255.47

Expenditure        

Raw Materials 166.09 174.85 203.92 163.89 168.22

Power & Fuel Cost 1.23 1.45 1.56 1.17 0.78

Employee Cost 17.98 15.78 15.49 12.25 9.02

Other Manuf Exps 0 6.25 9.27 8.2 8.61Selling and Admin Exp 0 0 21.85 21.9 17.06

Misc Expenses 33.91 23.92 4.44 3.1 3.91Total Expenses 219.21 222.25 256.53 210.51 207.6

Statement of Profit and Loss:-  Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

Operating Profit 32.85 38.8 55.74 58.44 45.32PBDIT 49.55 47.14 58.71 56.18 47.87Interest 6.97 5.44 2.87 1.35 0.74PBDT 42.58 41.7 55.84 54.83 47.13Depreciation 5.51 4.95 4.16 2.65 2.1Profit Before Tax 37.07 36.75 51.68 52.18 45.03Extra-ordinary items 0 0 -1.22 0 -0.18

PBT 37.07 36.75 50.46 52.18 44.85

Tax 12.09 13.45 16.83 18.17 15.16Reported Net Profit 24.99 23.3 34.85 33.99 29.87Minority Interest 0 0 2.2 1.05 1.23P/L Aft Minority Int 21.39 23.03 32.64 32.94 28.64Total Value Addition 53.12 47.4 52.61 46.63 39.38Equity Dividend 16.58 4.14 8.29 4.14 3.15Corporate Dividend Tax 2.69 0.67 1.38 0.7 0.54

Cash Flow Statement:-

  Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

Net Profit Before Tax 26.54 28.09 30.76 41.43 32.36

Operating Activities 21.45 30.66 38.46 3.4 -2.29

investing activities 2.23 -8.16 -27.27 -22.43 6.66

Financing Activities -18.04 -25.12 -6.56 21.27 -16.2

Net change In Cash and Cash Equivalents

5.63 -2.62 4.62 2.24 -11.83

Opening Cash & Cash Equivalents

10.7 13.32 8.7 6.46 18.29

Closing Cash & Cash Equivalents

16.33 10.7 13.32 8.7 6.46

Notes to accounts:-Significant Accounting PoliciesConvention and Basis of Preparation of Financial Statements

Basis of Preperation of Financial Statement

Use of Estimates

Tangible and Intangible Assets

Tangible Assets

Intangible Assets

Depreciation and Amortisation

Revenue Recognition

Inventory

Investments

Transactions in Foreign Currency

Employee Benefit

Ratios:-

Investment Valuation Ratios Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

Face Value 10 10 10 10 10Operating Profit Per Share (Rs) 19.82 23.41 33.63 35.25 28.77

Net Operating Profit Per Share (Rs)

153.64 160.12 178.65 162.07 154.78

Free Reserves Per Share (Rs)

-- -- 97.8 84.74 65.59

Bonus in Equity Capital

75.56 75.56 75.56 75.56 77.77

Ratios:-

Profitability Ratios Mar '13 Mar '12 Mar '11 Mar '10 Mar '09Operating Profit Margin(%)

12.9 14.62 18.82 21.74 18.58

Profit Before Interest And Tax Margin(%)

10.21 12.37 17.22 20.76 17.5

Gross Profit Margin(%) 10.73 12.75 17.41 20.76 17.72Cash Profit Margin(%) 10.04 10.23 13.16 14.48 13.16Adjusted Cash Margin(%) 10.04 10.23 13.16 14.48 13.16Net Profit Margin(%) 9.33 8.51 10.89 12.26 11.6Return On Capital Employed(%)

15.63 17.93 24.42 26.75 29.19

Return On Net Worth(%) 12.34 11.81 18.26 20.15 21.98

Return on Assets Excluding Revaluations

122.08 118.96 107.84 98.61 82.71

Return on Assets Including Revaluations

122.08 118.96 107.84 98.61 82.71

Return on Long Term Funds(%)

19.05 20.09 28.02 30.78 32.89

Ratios:-

Liquidity And Solvency Ratios        

Current Ratio 1.36 1.81 1.66 1.69 2.02

Quick Ratio 1.6 2.27 2.06 2.57 2.83

Debt Equity Ratio 0.28 0.19 0.26 0.28 0.21

Long Term Debt Equity Ratio

0.05 0.06 0.1 0.11 0.08

Ratios:-

Debt Coverage Ratios        

Interest Cover 5.8 7.7 25.33 74.1 --

Total Debt to Owners Fund

0.28 0.19 0.26 0.28 0.21

Financial Charges Coverage Ratio 6.59 8.61 20.62 43.26 65.65

Financial Charges Coverage Ratio Post Tax

5.37 6.19 13.83 27.36 42.69

Ratios:-

Management Efficiency Ratios        

Inventory Turnover Ratio 4.5 4.68 4.68 5.6 6.99

Debtors Turnover Ratio 5.45 5.83 6.79 6.57 7.22

Investments Turnover Ratio 4.5 4.68 4.68 5.6 6.99

Fixed Assets Turnover Ratio

2.6 2.84 3.4 3.58 5.42

Total Assets Turnover Ratio

1.01 1.17 1.32 1.24 1.55

Asset Turnover Ratio 1.03 1.16 1.35 3.58 5.42

Ratios:-

Cash Flow Indicator Ratios        

Dividend Payout Ratio Net Profit 77.09 20.67 29.6 14.71 12.86

Dividend Payout Ratio Cash Profit 63.16 17.04 26.25 13.61 11.98

Earning Retention Ratio 9.95 79.09 72.61 86.63 87.88

Cash Earning Retention Ratio 28.39 82.79 75.5 87.54 88.67

AdjustedCash Flow Times 2.09 1.31 1.18 1.16 0.84

Questions?

Thank you