GrantThornton. Apollo Tyres AG. An instinct forgrowth. Baden. and Report of the Statutory Auditor. March31, on the Limited Statutory Examination

Transcription

1 GrantThornton An instinct forgrowth Apollo Tyres AG Baden Financial Statements for the Year ended March31, 2017 and Report of the Statutory Auditor on the Limited Statutory Examination Zürich Schaan Geneve Buchs Member of Grant Thornton International Ltd

2 GrantThornton An instinct for growth Grant Thornton AG Im Tiergarten 7 P. O. Box 9317 CH-8036 Zürich Report of the Statutory Auditor on the Limited Statutory Examination T F www. grantthornton. ch To the General Meeting of the shareholders of Apollo Tyres AG, Baden As statutory auditor, we have examined the finandal Statements (balance sheet, income Statement and notes) of Apollo Tyres AG for the year ended March 31, These flnancial Statements are die responsibility of the board of directors. Our responsibüity is to perform a limited statutory examination on these financial Statements. We confirm that we meet the licensing and independence requirements äs sdpulated by Swiss law. We conducted our examinaüon in accordance with the Swiss Standard on the Limited Statutory Examinaüon. This Standard requires that we plan and perform a limited statutory examination to idenüfy material misstatements m the financial Statements. A limited statutory examination consists primarily of inquiries of Company personnel and analyücal procedures äs weu äs detailed tests of Company documents äs considered necessary in the circumstances. However, the tesüng of operaüonal processes and the intemal control System, äs well äs inquiries and further testing procedures to detect fraud or other legal violaüons, are not within the scope of this examinaüon. Based on our ümited statutory examinadon, nothing has come to our attention that causes us to believe that the fmancial Statements do not comply with Swiss law and the company's arücles of incorporadon. We draw attention to the fact that half of the share capital and legal reseryes is no langer covered-(article 725 para. l CO). Gra tön AG Erich Bücher Audit expert Auditor in charge Zürich, Aprü 13, 2017 Enclosures - Financial Statements (balance sheet, income Statement and notes) Zürich Zug Schaan Geneve Buchs Member of Grant Thornton International Ltd Mitglied von EXPERTsuisse CHE HR/MWST

3 BALANCE SHEETS AS AT MARCH 31, 2017 AND 2016 NOTES SWISS FRANCS 2017/ /2015 ASSETS CURRENT ASSETS Cash and cash equivalents Trade accounts receivables - group companies Other short-term receivables Prepaid expenses Total current assets TOTAL ASSETS 859' '530 2' '085 1'792'860 1'792'860 1'074' ' '250 2'107'380 2'107'380 LIABILITIES AND SHAREHOLDERS' EQUITY SHORT-TERM LIABILITIES Trade accounts payabtes Trade accounts payables - group companies Short-term provisions Total short-term tiabilities SHAREHOLDERS' EQUITY Share capital Legal capital reserves Reserves from capital contribution Accumulated deficit Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 26'022 36'460 10'OOQ 72'482 S'748' '400 (2'976'674) 1720' '860 18'278 31'968 19' '400 (2'659'402) 2'037'650 2'107'380

4 INCOME STATEMENTS FOR THE YEAR ENDED MARCH 31, AND 2016 SWISS FRANCS NOTES 2017/ /2015 INCOME Royalty Total operating income 2'102'899 2'102' '255 1'795'255 OPERATING EXPENSES Directors' fees Legal and Professional expenses Duty & taxes Audit fee Intercompany administration expenses Advertisement and puplicity expenses Miscellaneous expenses Amortisation Total operating expenses OTHER (EXPENSES) / INCOME Financial expenses Financial income Non operating expenses Total other expenses / income Loss for the year before taxes Direct Taxes Loss for the year Accumulated losses, begining ofthe year Accumulated losses, end of the year (8'OOQ) (486'388) (398) (9'956) (23'310) (1'779'505) (106'476) (10) (2'414'043) (1'290) (3'993) (5'283) (316'427) (845) ( ) (2'659'402) (2'976'674) (S'OOO) (476'875) (9'484) (11795) (23'310) (2'334'750) (88'931) (16'809) (2'969'954) (1'008) 27 (14'958) (15'939) (1'190'638) (845) (1'191'483) (1'467'919) (2'659'402)

5 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED 31 MARCH, 2017 AND 2016 A) COMPANY INFORMATION Apollo Tyres AG is registered under number CHE /a m the Canton of Aargau. Legal domicile is at Mellingerstrasse 2a, 5400 Baden, Switzerland. B) SIGNIFICANT ACCOUNTING POLICIES i. Basis ofaccounting These fmancial Statements were prepared according to the principles of the Swiss Law on Accounting and Financial Reporting (32nd title ofthe Swiss Code of Obligations). Where not prescribed by law, the significant accounting and valuation principles applied are described below. It should be noted that the Company's financial Statements may be influenced by the creation and release ofhidden reserves. 2. Foreign currency translation (i) Functional and presentation currency Items included in the financial Statements of the Company are measured using the currency of the primary economic environment in which the entity operates ("the fünctional currency"). The financial Statements are presented in Swiss Francs ("CHF"), which is the Company's fünctional and presentation currency. fii) Transactions and balances Non-Swiss Franc denominated assets and liabilities of the Company are translated into Swiss Francs at year-end rates of exchange. Income and expense items are translated at monthly average rates of exchange or the rate ruling at the date of the transaction. Foreign currency transaction gains and losses, except for unrealized gains, are included in the income Statement. Loans granted in foreign currencies are translated at the rate of the balance sheet date, whereby unrealized losses are recorded but unrealized profits are not recognized. 3. Provisions Provisions are recognised when the Company has a present legal or constmctive obligation äs a result ofpast events, it is probable that an outflow ofresources will be required to settle the obligation, and a reliable estimate ofthe amount can be made. 4. Operating income Operating income comprises of royalties from group companies. It is based on contractual s and recognized on an accmal basis.

6 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED 31 MARCH, 2017 AND 2016 C) NOTES ON ACCOUNTS: l. Shareholder: Particulars 2017/ /15 Holding Company Apollo Tyres Co. Operatief U. A., Amsterdam, Netherlands Apollo Tyres Co. Operatief U. A., Amsterdam, Netherlands 2. Transactions with Related Parties (Royalties) Detaüs Currency 2017/ /15 CHF 185, , 393 Apollo Tyres Ltd, Gurgaon, India CHF 853, ,222 Apollo Vredestein B.V., Enschede, The Netherlands CHF 441, ,221 Apollo Tyres (Middle East) FZE, Dubai, U. A.E CHF 10, 660 4, 143 Apollo Tyres Afi-ica (Pty) Ltd., Durban, South Afi-ica CHF 525, ,276 Apollo Tyres Thailand Ltd, Bangkok, Thailand Apollo Tyres (Malaysia) Sdn Bhd., Petaling Jaya, Malaysia CHF 86, 424 0

7 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED 31 MARCH, 2017 AND Transactions with Related Parties (operatmg expenses) Detaüs Currency 2017/ /15 Received invoices for administration expenses CHF 23,310 23,310 Apollo Vredestein Schweiz AG, Switzerland Received invoices for Services IBSF/MU CHF 379, , 146 Apollo Tyres (UK) PVT LTD, London, UK Received invoices for Sponsoring Apollo Tyres Ltd, Gurgaon, India CHF 1, 580, Payment for Directorship Fee Details Payment for Director Ship Fee (Mr. Peter Ackermann) Currency 2017/ /15 CHF 8, 000 8, Annual average number of fuu-time equivalents for the reportmg years The Company had no employees for the financial years 2017/16 and 2016/15.