Professional Documents
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SS-202
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RELAXO
FOOTWEARS
LIMITED
H o u s e , Plot No. 2,
ATTENDANCE
SLIP
P l e a s e c o m p l e t e t h i s a t t e n d a n c e slip a n d h a n d i t o v e r a t t h e e n t r a n c e c o u n t e r a t Sri S a t y a S a i I n t e r n a t i o n a l C e n t r e ,
Lodhi
Road
Institutional A r e a ,
Pragati Vihar,
N e w Delhi -
110 0 0 3 o n
2007 at
10.30 a . m .
NAME OF M E M B E R
FOLIO
NUMBER
NO. OF S H A R E S
*DPID
NO.
* C L I E N T ID NO.
NAME
OF
S I G N A T U R E OF
MEMBER/PROXY
MEMBER/PROXY
NOTES
1.
2.
For t h e c o n v e n i e n c e o f M e m b e r s , p e r s o n s o t h e r t h a n M e m b e r s / p r o x i e s w i l l n o t b e a l l o w e d i n t o t h e m e e t i n g .
PROXY
FORM
Folio No
DP I D .
No. of Shares
Client I D .
of
I/We.
.vote f o r m e / u s a n d o n m y / o u r b e h a l f a t t h e 2 3
C o m p a n y to be held on M o n d a y , t h e 2 4
t h
r d
Affix
Re.
S i g n e d this
SIGNED.
1.00
Revenue
Stamp
Note :
NOTICE
Notice is hereby given that the 23rd Annual General Meeting of the Members of Relaxo Footwears Limited will be held on
Monday, the 24th day of September 2007 at l0.30a.m.atSriSathyaSai International Centre & School, Lodhi Road.PragatiVihar,
New Delhi-1 10003 to transact the following business:
ORDINARY
BUSINESS
1.
To receive, consider and adopt the Audited Balance Sheet as at 31 st March 2007 and the Profit and Loss Account for the
year ended on that date together with the Reports of Directors and Auditors thereon.
2.
To appoint a Director in place of Mr.S.K.Sapra who retires by rotation as a Director and, being eligible, offers himself for
re-appointment.
3.
To declare dividend.
4.
To appoint Statutory Auditors to hold office from the conclusion of this Meeting until the conclusion of the
next Annual General Meeting and to fix their remuneration.
SPECIAL
BUSINESS
pass, with
or without
modification(s), the
following
resolution
as
an
" R E S O L V E D T H A T Mr.Vivek Kumar, who was appointed as an Additional Director at the meeting of the Board of Directors of
the Company held on 30th January,2007, and whose term expires at the ensuing Annual General Meeting of the Company, and
for the appointment of whom the Company has received a notice under Section 257 of the Companies Act, 1956, from a
member proposing his candidature for the office of Director, be and is hereby appointed as a Director of the Company whose
period of office will be liable to determination by retirement by rotation."
6.
To consider and, if thought fit, to pass, with or without modification(s),the following resolution as a Special Resolution:
" R E S O L V E D T H A T subject to the approval of shareholders and pursuant to the provisions of Section 198,269,309,31 I and
other applicable provisions, if any, of the Companies Act, 1956 Mr. Nikhil Dua be and is hereby appointed as W h o l e Time
Director of the Company on the following terms and conditions :1.
2.
Basic Salary
HRA
Medical Reimbursement
Bonus
Notwithstanding anything contained hereinabove, where in any financial year during the currency of tenure of Mr. Nikhil Dua
asWholeTime Director, if the Company has no profits or its profits are inadequate, he shall be paid a monthly remuneration
inclusive of salary, dearness allowance, perquisites or any other allowance as may be allowed as per the provisions of the
Companies Act, 1956 from time to time.
In addition to t h e r e m u n e r a t i o n as d e t a i l e d h e r e i n a b o v e , Mr. Nikhil D u a shall also be eligible for t h e f o l l o w i n g
perquisites:
a)
b)
c)
d)
3.
Contribution to Provident Fund, Superannuation Fund or Annuity Fund to the extent these
or put together are not taxable under the IncomeTaxAct, 1961.
Gratuity payable at a rate not exceeding half month's salary for each completed year of service.and
Encashment of leave at the end of the tenure.
OtherAllowances as per Company Rules.
No sitting fees for attending the meetings of the Board of Directors/ Committees thereof shall
Mr. Nikhil Dua till the time he is functioning asWholeTime Director.
either singly
be paid to
NOTES
Particulars
Amountfln
Basic
68000
House RentAllowance
Employer's Contribution to PF
Medical Reimbursement
restricted to one month's salary
Bonus restricted to one month s salary
40800
8160
5666
Rs.)
5666
and such other allowances .perquisites,benefits and amenities as applicable to the Company's Executives in the similar grade after
necessary approvals from the Central Government.
The Directors Relatives (Office or Place of Profit) Rules, 2003 (the Rules), inter alia, provide that no appointment for an office or
place of profit in a company shall take effect unless approved by the Central Government on an application in respect of
(a) Partner or relative of a director or manager or
m) Firm in which such director or manager.or relative of either is a partner;or
(c) Private company of which such director or manager or relative, if either, is a director or member,
As the remuneration payable to Mr.G aurav Dua is more than Rs. 50,000/- per month, approval of the Central Government is also
required for the appointment of and payment of remuneration to him in addition to the approval of the shareholders, under
Section 314( IB) of the Companies Act, 1956, is necessary.
The Board of Directors of the Company accordingly recommends the resolution for approval of the Members.
Mr. Ramesh Kumar Dua, Mr. Mukand Lai Dua and Mr. Nikhil Dua are interested in the passing of this resolution.
ITEM 9
Mr. Nitin Dua, son of Mr. Mukand Lai Dua, holds a Masters Degree in Marketing from Apeejay School of Management and has an
experience of more than three years in the Footwear Industry. He has a rich experience of the Retail Industry.The Board of
Directors of t h e Company at its meeting held on 31 st July, 2007 approved, subject to the approval of t h e shareholders of the
Company and the approval of the Central Government, the appointment of Mr. Nitin Dua as Joint Vice-President (Retail) in the
Company on the following remuneration structure.
Particulars
Basic
House RentAllowance
Amountjfin Rs.)
66000
39600
Employer's Contribution to PF
Medical Reimbursement
7920
5500
5500
and such other allowances .perquisites,benefits and amenities as applicable to the Company's Executives in the similar grade after
necessary approvals from the Central Government.
The Directors Relatives (Office or Place of Profit) Rules, 2003 (the Rules), inter alia, provide that no appointment for an office or
place of profit in a company shall take effect unless approved by the Central Government on an application in respect of
a)
Partner or relative of a director or manager or
m
Firm in which such director or manager.or relative of either is a partner;or
c) Private company of which such director or manager or relative, if either, is a director or member,
As the remuneration payable to Mr. Nitin Dua is more than Rs. 50,000/- per month, approval of the Central Government is also
required for the appointment of and payment of remuneration to him in addition to the approval of the shareholders, under
Section 314( IB) of the CompaniesAct, 1956,is necessary.
The Board of Directors of the Company accordingly recommends the resolution for approval of the Members.
Mr. Ramesh Kumar Dua, Mr. Mukand Lai Dua and Mr. Nikhil Dua are interested in the passing of this resolution.
For R E L A X O
P l a c e : Delhi
D a t e : J u l y 31,2007
FOOTWEARS
LIMITED
(SANDEEP CHANDNA)
COMPANY SECRETARY
NOTICE
4.
5.
all
other expenses
incurred
business of the
Mr. Ramesh Kumar Dua and Mr. Mukand Lai Dua are interested in the appointment of Mr. Nikhil Dua asWholeTime Director
and the remuneration payable to him.
7. To consider and, if thought fit, to pass, with or without modification(s),the following resolution as a Special
Resolution:
" R E S O L V E D THAT subject to the approval of the Central Government pursuant to Section 314( IB) and other applicable
provisions, if any, of the Companies Act, 1956, Directors' Relatives (Office or Place of Profit) Rules 2003, or any amendment or
substitution thereof, approval of the Company be and is hereby accorded to the appointment of Mr.Ritesh Dua (relative of Mr.
Ramesh Kumar Dua, Managing Director, Mr. Mukand Lai Dua, W h o l e Time Director and Mr. Nikhil Dua, Director of the
Company) to hold and continue to hold office or place of profit under the Company and designated as Joint Vice-President
(Finance) in the grade of Rs. 70000-10000-90000 and such other allowances, perquisites, benefits and amenities as applicable
to the Company's Executives in the similar grade after necessary approvals from the Central Government.
R E S O L V E D F U R T H E R T H A T the Board of Directors be and is hereby authorized to do all such acts, deeds and things as may be
necessary, expedient and desirable for the purpose of giving effect to this resolution."
8.
To consider and, if thought fit, to pass, with or without modification(s),the following resolution as a Special Resolution:
" R E S O L V E D T H A T subject to the approval of the Central Government pursuant to Section 3 I 4 ( I B ) and other applicable
provisions, if any, of the Companies Act, 1956, Directors' Relatives (Office or Place of Profit) Rules 2003, or any amendment or
substitution thereof, approval of the Company be and is hereby accorded to the appointment of Mr. Gaurav Dua (relative of Mr.
Ramesh Kumar Dua, Managing Director, Mr. Mukand Lai Dua, W h o l e Time Director and Mr. Nikhil Dua, Director of the
Company) to hold and continue to hold office or place of profit under the Company and designated as Joint Vice-President
(Marketing) in the grade of Rs. 68000- 9500-87000 and such other allowances, perquisites, benefits and amenities as applicable
to the Company's Executives in the similar grade after necessary approvals from the Central Government.
R E S O L V E D F U R T H E R T H A T the Board of Directors be and is hereby authorized to do all such acts.deeds and things as may be
necessary, expedient and desirable for the purpose of giving effect to this resolution."
9.
To consider and, if thought fit, to pass, with or without modification(s),the following resolution as a Special Resolution:
" R E S O L V E D THAT subject to the approval of the Central Government pursuant to Section 3 14( I B) and other applicable
provisions, if any, of the Companies Act, 1956, Directors' Relatives (Office or Place of Profit) Rules 2003, or any amendment or
substitution thereof, approval of the Company be and is hereby accorded to the appointment of Mr. Nitin Dua (relative of Mr.
Ramesh Kumar Dua, Managing Director, Mr. Mukand Lai Dua, W h o l e Time Director and Mr. Nikhil Dua, Director of the
Company) to hold and continue to hold office or place of profit under the Company and designated as Joint Vice-President
(Retail) in the grade of Rs. 66000- 9000-84000 and such other allowances , perquisites, benefits and amenities as applicable to
the Company's Executives in the similar grade after necessary approvals from the Central Government.
R E S O L V E D FURTH ERTH AT the Board of Directors be and is hereby authorized to do all such acts, deeds and things as may be
necessary, expedient and desirable for the purpose of giving effect to this resolution."
(SANDEEP CHANDNA)
COMPANY SECRETARY
NOTES
I.
A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote instead of himself
and such proxy need not be a member of the Company.The proxies, in order to be effective, must be received by the
Company not less than 48 hours before the commencement of 23rd Annual General Meeting.
II.
a) The Register of Members and Share Transfer Books of the Company shall remain closed from Tuesday, 18th
September,2007to Monday,24th September,2007 (both days inclusive).
b)
Dividend on equity shares of the Company, as recommended by the Board of Directors, if declared at the
Annual General Meeting, will be paid on or after Monday, 24th September, 2007.
c)
Members may please note that the dividend warrants/ drafts are payable at par at the designated branches of the bank for
an initial period of 6 months only. Thereafter, the dividend warrant on revalidation is payable only at limited centres. The
members are, therefore advised to encash dividend warrants/drafts within the initial validity period.
d)
All documents referred to in the accompanying Notice are open for inspection at the Registered office of the
Company on all the working days between 10.00 a.m. and 1.00 p.m. up to the date of Annual General Meeting, except on
Sundays, and other Holidays.
e)
Members desiring any information on the Accounts are requested to write to the Company at its Registered office,
316-319, Allied House, Inderlok, Old Rohtak Road, Delhi-110035, giving at least 7 days notice prior to the date
of Annual General Meeting to enable the Management to collect and keep the information ready.
f)
With a view to eliminate any possibility of forgery or fraud, the shareholders are requested to furnish their
Bank Account Number (current/saving), the name of the Bank and Branch where they would like to deposit
their dividend warrant/ draft for encashment. These particulars will be printed on the Cheque Portion of
the dividend warrant/ draft. This should be furnished by the Sole Holder or the first named Shareholder to
Company or its Share Transfer Agent i.e. M/s Karvy Computer-share Private Limited
Shareholders/ Beneficial owners of shares are further advised that they should furnish their bank account details to depository
participants and the Company will not entertain any direct request from such shareholders for deletion/change in such bank
details.The bank mandate for shares held in physical form will not be automatically applied for shares held in electronic form.
g) Bank Details / Intimation of Change of Address should reach the Company or its Share Transfer Agents
M/s Karvy Computershare Private Limited, to enable the Company to give effect to such change.
h)
i.e.
Members are hereby informed that dividends which remain unclaimed / unencashed over a period of 7 Years
have to be transferred by the Company to Investor Education & Protection Fund (IEPF) constituted by the
Central Government under section 205A and 205C of the Companies Act, 1956. Further under the
Companies Act, 1956 no claim shall lie for the unclaimed dividend from IEPF by the shareholders.
The details in respect of unclaimed dividend when due for transfer to the said fund are given below:
III.
Financial
Year
D a t e of
Declaration
31.03.2000
31.03.2001
31.03.2002
31.03.2003
31.03.2004
31.03.2005
31.03.2006
22.09.00
14.09.01
26.09.02
26.09.03
24.09.04
22.09.05
21.09.06
Date of Transfer
to Unpaid
Dividend a/c
29.10.00
21.10.01
02.11.02
02.11.03
30.10.04
28.10.05
27.10.06
Last date
of c l a i m
28.10.07
20.10.08
01.11.09
01.11.10
29.10.11
27.10.12
26.10.13
Due date
of t r a n s f e r
toIEPF
27.11.07
19.11.08
30.11.09
30.11.10
28.11.11
26.11.12
25.11.13
A m o u n t of
Dividend
(Rs.)
30,185
34,881
59,291
52,228
330
1,315
19,772
1956
is
NOTES
Explanatory S t a t e m e n t pursuant to S e c t i o n 173(2) of t h e C o m p a n i e s A c t , 1956:
ITEM 5
Mr.Vivek Kumar was appointed as Additional Director in the meeting of the Board of Directors held on 30th January, 2007, and
holds office till the date of the ensuing Annual General Meeting.The Company has received a notice under Section 257 of the
Companies Act, 1956 proposing his candidature for the office of Director liable to retire by rotation.
The resolution is put up for approval by the shareholders of the Company.
None of the Directors except Mr.Vivek Kumar himself is interested or concerned in the passing of the resolution.
ITEM 6
Mr. Nikhil Dua is a professionally qualified Director of the Company who has been rendering services for the shoe division of the
company for more than ten years. Considering his qualifications and contribution to the growth of the company, the Board feels
that he must be madeWholeTime Director and remunerated appropriately.
Your directors commend the resolution for your approval.
Mr. Ramesh Kumar Dua, Managing Director, Mr. Mukand Lai Dua.WholeTime Director and Mr. Nikhil Dua himself are concerned
in the passing of the resolution.
ITEM 7
Mr. Ritesh Dua, son of Mr. Mukand Lai Dua, holds a Masters Degree in Business Administration (Finance) from Fore School of
Management, New Delhi, has an experience of more than seven years in the Footwear Industry
T h e Board of Directors of the Company at its meeting held on 31st July, 2007 approved, subject to the approval of the
shareholders of the Company and the approval of the Central Government, the appointment of Mr. Ritesh Dua as Joint VicePresident (Finance) in the Company on the following remuneration structure.
Particulars
Basic
House RentAllowance
Employer's Contribution to PF
Medical Reimbursement
restricted to one month's salary
Bonus restricted to one month s salary
A m o u n t Q n Rs.)
70000
42000
8400
5833
5833
and such other allowances .perquisites, benefits and amenities as applicable to the Company's Executives in the similar grade after
necessary approvals from the Central Government.
The Directors Relatives (Office or Place of Profit) Rules, 2003 (the Rules), inter alia, provide that no appointment for an office or
place of profit in a company shall take effect unless approved by the Central Government on an application in respect of
(a) Partner or relative of a director or manager or
m) Firm in which such director or manager, or relative of either is a partner; or
(c) Private company of which such director or manager or relative, if either, is a director or member,
As the remuneration payable to Mr. Ritesh Dua is more than Rs. 50,000/- per month, approval of the Central Government is also
required for the appointment of and payment of remuneration to him in addition to the approval of the shareholders, under
Section 314(1 B) of the Companies Act, 1956, is necessary.
The Board of Directors of the Company accordingly recommends the resolution for approval of the Members.
Mr. Ramesh Kumar Dua, Mr. Mukand Laf Dua and Mr. Nikhil Dua are interested in the passing of this resolution.
ITEM 8
Mr. Gaurav Dua, son of Mr. Ramesh Kumar Dua, holds a Masters Degree in Marketing from University of Wales, Cardiff (U.K.) and
has an experience of more than five years in the Footwear Industry. He has taken extensive hands-on training in marketing of
footwear in the Indian Market.
T h e Board of Directors of the Company at its meeting held on 31 st July, 2007 approved, subject to the approval of the
shareholders of the Company and the approval of the Central Government, the appointment of Mr. Gaurav Dua as Joint VicePresident (Marketing) in the Company on the following remuneration structure.
RELAXO
FOOTWEARS
LIMITED
H o u s e , Plot No. 2,
ATTENDANCE
SLIP
P l e a s e c o m p l e t e t h i s a t t e n d a n c e slip a n d h a n d i t o v e r a t t h e e n t r a n c e c o u n t e r a t Sri S a t y a S a i I n t e r n a t i o n a l C e n t r e ,
Lodhi
Road
Institutional A r e a ,
Pragati Vihar,
N e w Delhi -
110 0 0 3
on
M o n d a y , the 24th
September,
2007 at
10.30 a . m .
NAME OF M E M B E R
FOLIO
NUMBER
NO. OF S H A R E S
*DPIDNO.
* C L I E N T ID NO.
NAME
S I G N A T U R E OF
OF
MEMBER/PROXY
MEMBER/PROXY
N O T E S :1.
M e m b e r s / P r o x y h o l d e r s a r e r e q u e s t e d t o b r i n g their c o p i e s o f t h e A n n u a l R e p o r t w i t h t h e m t o t h e m e e t i n g .
2.
For t h e c o n v e n i e n c e o f M e m b e r s , p e r s o n s o t h e r t h a n M e m b e r s / p r o x i e s w i l l n o t b e a l l o w e d into t h e m e e t i n g .
PROXY
FORM
Folio No
DP I D .
N o . of Shares.
Client I D .
of
I/We.
. b e i n g a M e m b e r / M e m b e r s of or f a i l i n g h i m / h e r
of
rd
.vote for m e / u s a n d o n m y / o u r b e h a l f a t t h e 2 3 A n n u a l G e n e r a l M e e t i n g o f t h e
Company to beheld on Monday, the 24
S i g n e d this
t h
SIGNED.
Affix
Re. 1.00
Revenue
Stamp
Note :
b e f o r e t h e t i m e for h o l d i n g t h e m e e t i n g
BOARD
OF
DIRECTORS
R a m e s h K u m a r Dua
M u k a n d Lai D u a
Nikhil Dua
G.C. Rastogi
S.K. S a p r a
Vivek Kumar
COMPANY
M a n a g i n g Director
W h o l e Time Director
Director
Director
Director
Director
SECRETARY
Sandeep Chandna
CHIEF
FINANCIAL
OFFICER
Sushil Batra
AUDITORS
GUPTA
&
JHUNJHUNWALA
Chartered
Accountants
9, Darya G a n j ,
N e w Delhi - 1 1 0 0 0 2
BANKERS
STATE
B A N K OF
Mayapuri,
SHARE
INDIA
N e w D e l h i - 110 0 6 4
TRANSFER
AGENTS
M/s K a r v y C o m p u t e r s h a r e P r i v a t e
46, A v e n u e 4 , Street N o . 1 ,
B a n j a r a Hills
Hyderabad - 500034
REGISTERED
Limited
CONTENTS
Directors'
Report
Corporate
Governance
Auditors'
Report
Page No.
2-5
Report
6-14
OFFICE
RELAXO
FOOTWEARS
LIMITED
316-319,
Allied
Inderlok C h o w k ,
House,
15-18
Balance Sheet
19
WORKS
Profit
&
Loss A c c o u n t
20
Cash
Flow Statement
21
MIE,
Haryana
Schedules
Industrial Area
Phase-Ill, Bhiwadi,
Accounting
Rajashtan
30/3/2, Rakba
Tikri
Mooja
Hasanpur,
B o r d e r ( N e a r S a l e s Tax O f f i c e ) ,
Bahadurgarh
83-92,
BHEL,
(Haryana)
S I D C U L Industrial A r e a ,
Haridwar (Uttaranchal)
22-27
Policies &
Notes on A c c o u n t s
28-34
35
LrUTJTJTJTJTJTJT-rLTLr'
Directors' Report
Dear M e m b e r s ,
The
Board
pleasure
of the
C o m p a n y for t h e Financial Y e a r 2 0 0 6 - 0 7 .
1.
FINANCIAL RESULTS
(Rs. in Lacs)
2006-07
2005-06
Total I n c o m e
23687.62
20183.40
Total E x p e n d i t u r e
21734.90
18992.55
1952.72
1190.85
Particulars
P r o f i t b e f o r e D e p r e c i a t i o n & Tax
Depreciation
P r o f i t b e f o r e Tax
Provision for Taxation
830.17
733.32
1122.55
462.99
457.53
131.68
P r o f i t a f t e r Tax
659.56
325.85
A d d : - B a l a n c e in P & L A / c
243.56
301.40
A d d / ( L e s s ) : - Prior period a d j u s t m e n t
A m o u n t available for A p p r o p r i a t i o n
30.53
37.27
933.65
664.52
90.01
15.30
90.01
12.62
Appropriation:Dividend
Tax o n D i v i d e n d
2.
Transfer to G e n e r a l Reserve
500.00
300.00
B a l a n c e carried t o B a l a n c e S h e e t
328.34
261.89
DIVIDEND
The Board of Directors r e c o m m e n d s a dividend @ 1 5 % on the equity shares of the C o m p a n y for the y e a r
ended 31 " M a r c h , 2007.
3.
AUDITORS
The Statutory Auditors of the Company,
hold
office till t h e c o n c l u s i o n
a p p o i n t m e n t . The C o m p a n y has
would
4.
M/s G u p t a
& Jhunjhunwala,
of the ensuing A n n u a l
received
General
Meeting
Chartered Accountants
and
b e w i t h i n t h e limits p r e s c r i b e d u n d e r S e c t i o n 2 2 4 ( 1 B ) o f t h e C o m p a n i e s A c t ,
AUDITORS'
1956.
REPORT
5.
DIRECTORS
Mr. S.
offers
Mr.
K.
himself for
Vivek
Directors
reappointment.
Kumar was
held
on
30th
appointed
January,
as
an
2007.
Additional
He
holds
Director at the
office
meeting
of directorship
hisappointmentasa
Board
of
of the
his a p p o i n t m e n t a s d i r e c t o r l i a b l e t o r e t i r e b y r o t a t i o n .
Your Directors r e c o m m e n d
of the
Directorof t h e C o m p a n y .
L r L T i J i r u i j n r m r t r L r '
Directors' Report
6.
resolution.
CORPORATE
GOVERNANCE
R e p o r t on C o r p o r a t e G o v e r n a n c e f o r m s a part of a n d is a n n e x e d to t h e Directors' R e p o r t .
7.
FIXED
DEPOSITS
The Company
has
Companies Act,
8.
DIRECTORS'
not
raised
any m o n e y by w a y of Fixed
Accounts
departures
2.
Standards
for t h e financial
have
been
year 2006-07,
followed
and
in
that there
the
preparation
have
been
no
of the
material
therefrom;
policies and
58A of the
3.
under section
RESPONSIBILITY STATEMENT
Deposits
they
have
accounting
under
taken
records
made
of t h e f i n a n c i a l y e a r a n d of t h e profit of t h e
review.
proper
in
p r u d e n t so as to give a t r u e a n d fair v i e w
and
sufficient
accordance with
the
care
for
provisions
the
maintenance
of the
Companies
of
adequate
Act,
s a f e g u a r d i n g t h e assets o f t h e C o m p a n y a n d for p r e v e n t i n g a n d d e t e c t i n g f r a u d
1956
and
for
other
irregularities;
4.
9.
CONSERVATION
AND
The
provisions
(Disclosure
conservation
OF
ENERGY.
TECNOLOGY ABSORPTION.
FOREIGN
of
of Section
Particulars
217(1)(e)
in
the
of the
Report
Companies Act,
of B o a r d
of
1956
Directors)
TECHNOLOGYABSORPTION
I
a)
in which
-Import substitution
-Product/Process
-Waste
R & D carried
of various
out
components
by the Company:
and
development.
recycling.
b)
EXCHANGE
EARNINGS
OUTGO:
B e n e f i t s d e r i v e d as a r e s u l t of R & D:
- I m p r o v e m e n t in
quality.
- D e v e l o p m e n t of n e w p r o d u c t / process.
spares.
read
Rules,
with
1988
the
Companies
regarding
the
LrLrLr\njanjTj~Ln_n_r
Directors' Report
c) Future plan of A c t i o n :
-Continuous development of products and
processes.
-To c o n t i n u e R & D w o r k t o a c h i e v e e x c e l l e n c e i n F o o t w e a r I n d u s t r y .
d)
E x p e n d i t u r e on R & D :
- E x p e n s e s o f R s . 1.18 l a c s h a v e b e e n i n c u r r e d f o r R & D .
II
a)
Efforts
- Introduction of
- Introduction
b)
low shrinkage
adaptation
& innovation:
footwear.
of Light w e i g h t f o o t w e a r .
c)
T e c h n o l o g y i m p o r t e d d u r i n g last f i v e y e a r s
NIL
b)
10.
Rs. 2 8 3 0 . 0 4 Lacs
Earned
Rs.
HUMAN
The
26.52 Lacs
Industrial
Relations
in
all
the
units
of the
Company
remained
cordial
and
peaceful
t h r o u g h o u t the year.
11.
ENVIRONMENT AND
Adequate
SAFETY
health
of employees and
labourers w e r e
manufacturing
in c a s e o f n e e d . There w a s n o m a j o r a c c i d e n t d u r i n g t h e year.
12.
QUALITY
MANAGEMENT
Directors' Report
certification enables us as an organisation to improve product quality and e n h a n c e productivity.
This
assessment
signifies
your Company's
capability to
manage
and
control
manufacturing
p r o c e s s f o r t h e m a n u f a c t u r e a n d s u p p l y o f q u a l i t y p r o d u c t s t o its c u s t o m e r s .
13.
Name
M r . M u k a n d Lai D u a
Qualification
B.Sc.
D a t e of Birth
08.01.1949
Designation
Date
W h o l e Time
01.04.94
of c o m m e n c e m e n t
Experience
Gross
(years)
35
remuneration
(Rs.)
60,39,500/Mr.
Name
Ramesh
Qualification
B.Com,
Date
24.03.1954
of Birth
Managing
Date
01.04.94
of c o m m e n c e m e n t
(years)
K u m a r Dua
LPRI
Designation
Experience
Director
(London)
Director
32
G r o s s r e m u n e r a t i o n (Rs.)
60,39,500/-
NOTES
1.
Remuneration
2.
3.
Mr.
Sections
198,
Mukand
Managing
4.
14.
309 a n d
Lai
Dua,
S c h e d u l e XIII
W h o l e Time
Managing
Director i s a s per t h e p r o v i s i o n s o f
of the C o m p a n i e s A c t ,
Director is the
1956.
relative o f Mr.
Ramesh
Kumar Dua,
Director of the C o m p a n y .
Nature of e m p l o y m e n t is contractual.
ACKNOWLEDGEMENT
T h e B o a r d o f D i r e c t o r s w o u l d like t o t h a n k t h e C o m p a n y ' s S h a r e h o l d e r s , E m p l o y e e s a n d B a n k e r s
for their c o n t i n u e d s u p p o r t a n d
For a n d
Place : Delhi
Date
(RAMESH
: J u l y 3 1 , 2007
on
behalf of the
KUMAR
Managing
in the times to c o m e .
DUA)
Director
Board
of
(MUKAND
Directors
LAL
Chairman
DUA)
UTJTrxnJTJTJT-TirLrLr"
Corporate Governance
PHILOSOPHY
C o r p o r a t e G o v e r n a n c e has o c c u p i e d pivotal position at Relaxo F o o t w e a r s Limited since i n c e p t i o n . The business
h a s , since t h e n , b e e n c o n d u c t e d i n t h e m o s t t r a n s p a r e n t a n d ethical m a n n e r . All t h e n e c e s s a r y steps h a v e b e e n
t a k e n , w i t h t h e c h a n g i n g s o c i o - e c o n o m i c s c e n a r i o , t o e n s u r e t h a t t h e c o n d u c t o f b u s i n e s s i s a s per t h e p o l i c i e s
of the
Management,
namely,
its
stakeholders through
an
effective
and
ethical
in
professional
of Directors,
Policies a n d
its o b l i g a t i o n s
complete
and
timely
Clause 49 of the
Listing
maximisation of shareholders' w e a l t h .
B O A R D OF D I R E C T O R S
The composition
Agreement.
of the present B o a r d
of Directors of the c o m p a n y is in
line w i t h
f o l l o w i n g t a b l e clearly reflects t h e c o m p o s i t i o n :
Composition and Category of Directors
Category
N a m e of Directors
Promoter and
Executive Directors
Mr. R a m e s h K u m a r D u a , M a n a g i n g D i r e c t o r
Mr. M u k a n d Lai D u a , W h o l e t i m e D i r e c t o r
Promoter and
Non-Executive Director
Independent
Mr. G . C . R a s t o g i
and
Mr. S.K. S a p r a
Non-Executive Directors
Mr.Vivek Kumar
A t t e n d a n c e of Directors at the M e e t i n g s of Board of Directors held during the Financial Year 2006-07 a n d at the
last A n n u a l G e n e r a l M e e t i n g ( A G M ) h e l d o n S e p t e m b e r 2 1 , 2 0 0 6 i s d e t a i l e d h e r e u n d e r :
Details of M e e t i n g s of B o a r d of Directors held d u r i n g t h e y e a r 2006-07 :
Date
20.05.2006
27.07.2006
26.10.2006
30.01.2007
5
No.
of B o a r d
Attendance
in
Number of other
Meetings
A G M held o n
Companies in w h i c h
attended
21.09.2006
Mr. R a m e s h K u m a r D u a
Present
D i r e c t o r s h i p held
2
Mr. M u k a n d Lai D u a
Present
Name of Director
Mr. Nikhil D u a
Present
Present
Mr. S . K . S a p r a
Present
Not a D i r e c t o r on
the date of A G M
Mr. V i v e k K u m a r
Corporate Governance
C O M M I T T E E S OF B O A R D OF D I R E C T O R S
AUDIT
COMMITTEE
T h e A u d i t C o m m i t t e e has b e e n c o n s t i t u t e d a s per s e c t i o n 2 9 2 A o f T h e C o m p a n i e s A c t ,
set
out
in
the
listing
Agreement
with
the
Stock
Exchange.
The
terms
of
include
Approving
audit
plans
and
internal
control
reporting
reference
internal
reliability of t h e C o m p a n y ' s f i n a n c i a l
function
and
of
including
process.
reviewing
the
efficacy
of the
functions.
Discussion and
Discussion
with
Auditors
about
the
scope
audit
the
observations
of
the
auditors.
I n v e s t i g a t e a n y a c t i v i t y w i t h i n its t e r m s o f r e f e r e n c e a n d t o s e e k a n y i n f o r m a t i o n
it requires f r o m any
employee.
Obtain
legal
or other independent
professional
advice
and
to
secure the
attendance
of outsiders
AND ATTENDANCE
The following tables summarise the composition and attendance at the meetings of the Audit Committee
Category
Capacity
Name of Director-member
Mr. G . C . R a s t o g i
Chairman
Member
Mr. Nikhil D u a
Member
Mr. G. C. R a s t o g i
Mr. S . K . S a p r a
20.05.2006
YES
27.07.2006
YES
YES
NO
YES
YES
26.10.2006
YES
YES
YES
30.01.2007
YES
YES
YES
Date of meeting
Lnj-uTjTJTjaruT-rLTLr
Corporate Governance
His c o n t r i b u t i o n h a s b e e n i n t h e f o r m o f i m p r o v e d p r o d u c t i v i t y , q u a l i t y a n d e f f i c i e n c y .
He is also a m a n a g e m e n t
c o n s u l t a n t t o m a n y c o r p o r a t e s i n India a n d a b r o a d i n t h e a r e a s o f Q u a l i t y , P r o d u c t i v i t y , E n v i r o n m e n t , S a f e t y , e t c .
Prof. V i v e k K u m a r h a s b e e n a s s o c i a t e d w i t h a c a d e m i c s a n d s p e c i a l i z e s i n t h e a r e a s o f O p e r a t i o n s M a n a g e m e n t ,
Supply Chain M a n a g e m e n t , Quality M a n a g e m e n t and Project M a n a g e m e n t .
in the Operations Area at FORE School of M a n a g e m e n t , New Delhi.
H e has w i d e l y t r a v e l e d a b r o a d a n d has
e x p o s u r e o f light e n g i n e e r i n g i n d u s t r y i n F r a n c e , J a p a n , U S A , U K , Sri L a n k a , N e p a l , M e x i c o , I n d o n e s i a , T h a i l a n d ,
F i n l a n d , S w e d e n etc.
SHARE T R A N S F E R C O M M I T T E E
Mr. G . C . R a s t o g i , C h a i r m a n
03
Mr. R a m e s h K u m a r Dua
Mr. M u k a n d Lai D u a
03
03
&
transfer
of
shares,
etc.
inter-alia,
were
duly
non-receipt of dividend,
attended
and
the
copies of A n n u a l
Company
has
Report,
furnished
split
necessary
promptly.
receipt of A n n u a l
following
Reports,
non
receipt of dividend
and
allied
T r a n s f e r / t r a n s m i s s i o n of s h a r e s .
Issue of n e w a n d d u p l i c a t e s h a r e certificates.
performs the
functions:
Corporate Governance
Mr. S a n d e e p C h a n d n a , C o m p a n y S e c r e t a r y i s t h e c o m p l i a n c e officer o f t h e C o m p a n y .
REMUNERATION
POLICY
T h e r e m u n e r a t i o n policy o f t h e C o m p a n y i s d i r e c t e d t o w a r d s r e w a r d i n g p e r f o r m a n c e , b a s e d o n periodic r e v i e w
of p e r f o r m a n c e s a n d a c h i e v e m e n t s a n d is primarily b a s e d on t h e f o l l o w i n g criteria :
P e r f o r m a n c e o f t h e C o m p a n y , its d i v i s i o n s a n d u n i t s .
Name of Directors
Mr. R a m e s h K u m a r Dua
M r . M u k a n d Lai D u a
Mr.
Ramesh
Designation
M a n a g i n g Director
W h o l e T i m e Director
Kumar Dua,
Managing
Salary
Perks
Commission
Total
(Rs.)
30,00,000
(Rs.)
(Rs.)
Nil
Nil
30,39,500
(Rs.)
60,39,500
30,39,500
60,39,500
30,00,000
Director and
Mr.
Mukand
Lai
R e m u n e r a t i o n of N o n
-Executive Directors -
Details o f r e m u n e r a t i o n
paid t o t h e
Non-
Executive
Sitting fees
(Rs.)
14,000.00
Mr. G . C . R a s t o g i
Mr. S.K. Sapra
9,000.00
F.Y 2 0 0 3 - 0 4
F.Y. 2 0 0 4 - 0 5
Friday
Thursday
24.09.2004
22.09.2005
10.30 A . M .
10.30 A . M .
Sri S a t y a Sai I n t e r n a t i o n a l
Sri S a t y a Sai I n t e r n a t i o n a l
C e n t r e s School
Centre& School
Lodhi Road Institutional A r e a , Lodhi Road Institutional A r e a ,
Lodhi R o a d , Pragati Vihar,
Lodhi R o a d , Pragati Vihar,
New Delhi-110003
New Delhi-110003
F.Y. 2 0 0 5 - 0 6
Thursday
21.09.2006
10.30A.M.
Sri Satya Sai I n t e r n a t i o n a l
Centres School
Lodhi Road Institutional A r e a ,
Lodhi R o a d , Pragati Vihar,
N e w Delhi - 1 1 0 0 0 3
LTLTLTiri/\rLnj"u~LrLr'
Corporate Governance
DISCLOSURES
(i)
D i s c l o s u r e o n t h e m a t e r i a l l y s i g n i f i c a n t r e l a t e d p a r t y t r a n s a c t i o n i.e. t r a n s a c t i o n s o f t h e C o m p a n y o f
m a t e r i a l n a t u r e , w i t h its P r o m o t e r s , D i r e c t o r s o r t h e M a n a g e m e n t , t h e i r s u b s i d i a r i e s o r r e l a t i v e s e t c . t h a t
may have potential conflict w i t h the interests of the C o m p a n y at large : No such t r a n s a c t i o n has been
e n t e r e d into d u r i n g t h e year. All related party t r a n s a c t i o n s h a v e b e e n r e p o r t e d a n d f o r m part o f t h e N o t e s
to Accounts Section of the Balance Sheet.
(ii)
MEANS OF COMMUNICATION
Half-yearly results report sent to e a c h
household of Shareholders:
N o , b u t p u b l i s h e d (in t h e E n g l i s h
language) in Financial Express/Economic
T i m e s a n d (in t h e H i n d i L a n g u a g e ) i n
Jansattta/Navbharat Times, Delhi.
Quarterly Results :
P u b l i s h e d (in t h e E n g l i s h l a n g u a g e ) i n
Financial Express/Economic Times and
(in t h e H i n d i L a n g u a g e ) i n J a n s a t t a /
Navbharat Times, Delhi.
www.relaxofootwear.com
No
No
Institutional
B e s i d e s display o f q u a r t e r l y f i n a n c i a l results o n t h e w e b s i t e o f t h e c o m p a n y , w w w . r e l a x o f o o t w e a r . c o m , t h e
s a m e are also
posted
on the
Electronic
Data
Information
filing
and
Retrieval w e b s i t e
namely
w w w . s e b i e d i f a r . n i c . i n . T h e w e b s i t e i s a l s o a c c e s s i b l e t h r o u g h a H y p e r l i n k 'EDIFAR' f r o m SEBI's o f f i c i a l w e b s i t e
www.sebi.gov.in
GENERAL SHAREHOLDERS
INFORMATION
M o n d a y . 24th S e p t e m b e r , 2 0 0 7 at 10.30 a . m .
Sri S a t h y a S a i I n t e r n a t i o n a l C e n t r e , I n s t i t u t i o n a l A r e a ,
Pragati Vihar, Lodhi R o a d , N e w Delhi-110003.
For t h e q u a r t e r e n d i n g S e p t . 3 0 , 2 0 0 7
End-October, 2007
For t h e q u a r t e r e n d i n g D e c . 3 1 , 2 0 0 7
End-January, 2008
Audited Annual
Results for 2 0 0 7 - 0 8
End J u n e , 2 0 0 8
Annual General
M e e t i n g for 2 0 0 7 - 0 8
Mid-Sept, 2008
Book Closure
Tuesday,
Dates
18th S e p t e m b e r , 2 0 0 7 t o M o n d a y , 2 4 t h
10
Corporate Governance
Dividend
3rd
P a y m e n t Date
w e e k of October 2007
(Tentative)
Registered
Office
Inder Lok, D e l h i - 3 5 . ,
Tel. 2 3 6 5 8 3 5 4 , 2 3 6 5 8 3 6 5
Fax. 9 1 - 1 1 - 2 3 6 5 8 4 3 1 , 23658773
E-mail : s a n d e e p c h a n d n a @ . r e l a x o f o o t w e a r . c o m
Bombay Stock Exchange Limited,
Listing on Stock E x c h a n g e
Stock Code
530517
Stock M a r k e t Data
Table s h o w i n g
Month &
Year
Apr, 06
High
Rs.
Low
Rs.
Close
Rs.
Mkt
Cap.
41.80
34.65
37.10
44.52
M a y , 06
40.25
28.05
34.50
41.40
June,
33.65
23.35
29.60
35.52
06
30.85
25.00
26.85
32.22
A u g , 06
37.70
26.45
32.65
39.18
Sept,
36.05
29.05
36.05
43.26
O c t , 06
38.45
31.00
31.70
38.04
Nov, 06
39.95
28.00
36.85
44.22
D e c , 06
54.40
30.35
43.25
51.90
Jan, 07
47.90
40.00
40.20
48.24
Feb, 0 7
43.90
32.45
34.15
40.98
Mar, 07
37.60
30.30
33.35
40.02
July,
9.
06
06
10. S h a r e T r a n s f e r S y s t e m :
T h e C o m p a n y has a p p o i n t e d M/s Karvy C o m p u t e r s h a r e P v t . L t d . as S h a r e Transfer A g e n t both for P h y s i c a l &
Electronic transfer of s h a r e s . All requests for transfer of s h a r e s , if f o u n d in order, are p r o c e s s e d w i t h i n
period of 14 days f r o m the date of receipt.
11
u T J T J T j a r L n r u ~ u - \ r i r
Corporate Governance
11
(a) D i s t r i b u t i o n o f s h a r e h o l d i n g s a s o n 3 1 ' M a r c h , 2 0 0 7
S I . No.
Category
From
N o . of
To
% of
Shareholders
N o . of
Shareholders
1.
0001
2202
93.50
2.
5001
10000
68
3.
10001
20000
42
4.
20001
30000
5.
30001
6.
40001
7.
50001
8.
100001
5000
40000
of A m o u n t
509771
4.25
2.89
105060
0.88
1.78
125131
1.05
0.34
40023
0.33
0.30
49944
0.41
50000
0.13
28489
0.23
100000
0.38
127783
1.06
&
Above
16
0.68
11014999
91.79
2355
100.00
12001200
100.00
TOTAL
(b) C a t e g o r i e s of S h a r e h o l d i n g as on 3 1
Category
s t
M a r c h , 2007
%To
Equity
No. of S h a r e h o l d e r s
Holding
95
2125359
17.71
2217
9833594
81.93
31
39041
0.33
CLEARING M E M B E R S
2366
0.02
NON R E S I D E N T INDIANS
840
2355
12001200
0.01
100.00
BODIES CORPORATES
R E S I D E N T INDIVIDUALS
HUF
TOTAL
12.
Shareholders
D e m a t e r i a l i s a t i o n of S h a r e s
T h e C o m p a n y is offering transfer c u m d e m a t e r i a l i s a t i o n facility to s h a r e h o l d e r s w i t h effect f r o m M a y 8,
2000.
As on 31st M a r c h , 2007 out of total 120.01 Lacs
representing
On
completion
i n t i m a t e s t h e s h a r e h o l d e r s p r o v i d i n g a n o p t i o n letter t o d e m a t e r i a l i s e s u c h s h a r e s .
letter f r o m t h e s h a r e h o l d e r s ,
within the
request for s u c h
of s h a r e s s u b m i t t e d for transfer, t h e C o m p a n y
prescribed time
limit
mentioned
in the
U p o n receipt of t h e
option
letter,
the
Investor correspondence
All e n q u i r i e s , clarifications and c o r r e s p o n d e n c e s h o u l d
be a d d r e s s e d to the c o m p l i a n c e officer at t h e
following address:
Compliance
Officer
S a n d e e p C h a n d n a , C o m p a n y Secretary,
Relaxo F o o t w e a r s Limited,
316-319,
Allied House,
Inderlok C h o w k ,
Delhi - 1 1 0 0 3 5 .
12
Corporate Governance
14. Per S h a r e D a t a :
PARTICULARS
Net E a r n i n g s (Rs. Lacs)
Cash E a r n i n g s (Rs. Lacs)
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
659.56
325.85
372.31
540.37
349.01
406.60
685.83
1952.72
1190.85
1161.12
1015.04
764.90
822.27
832.04
5.50
2.72
3.10
4.50
2.91
3.39
9.35
16.27
9.92
9.67
8.46
6.37
6.85
11.34
E.P.S.
C.E.P.S.
0.75
0.75
0.75
0.75
0.75
0.75
0.75
D i v i d e n d p a y o u t ( %)
13.63
27.57
24.19
16.66
25.79
22.34
13.13
B o o k v a l u e per s h a r e
42.76
38.30
36.15
33.80
30.09
28.08
27.14
5.00
5.00
5.00
5.00
5.00
5.00
5.00
D i v i d e n d per s h a r e ( R s . )
Face v a l u e p e r s h a r e ( R s )
15. T r a n s f e r o f u n c l a i m e d a m o u n t s t o I n v e s t o r E d u c a t i o n a n d P r o t e c t i o n F u n d :
The investors are advised to claim the
d i v i d e n d s lying i n t h e u n p a i d d i v i d e n d a c c o u n t s
of the c o m p a n y
2000 o n w a r d s
S h a r e h o l d e r s w h o h a v e not c l a i m e d
as under the
n o c l a i m s h a l l lie f o r t h e u n c l a i m e d d i v i d e n d s
f r o m IEPF b y t h e m e m b e r s .
16.2
the
advantages
of scripless
trading,
shareholders
are
31st M a y ,
requested
to
2001,
consider
M e m b e r s / B e n e f i c i a l o w n e r s a r e r e q u e s t e d t o q u o t e t h e i r F o l i o N o . / D.P. & c l i e n t I D N o s . a s t h e
c a s e m a y b e , i n all c o r r e s p o n d e n c e w i t h t h e C o m p a n y .
16.4
Beneficial o w n e r s of shares in d e m a t form are advised that in terms of the regulations of N S D L &
C D S L , their B a n k A c c o u n t details, as furnished to the Depository participants (DP) will be printed
on their Dividend W a r r a n t s .
16.6
13
LTLnJTJTJTJTJTJTXLTLr'
Corporate Governance
16.7
Section
109A of t h e C o m p a n i e s act,
1956 extends
n o m i n a t i o n facility to
individuals
holding
in the
It is neither an a u d i t nor
Listing A g r e e m e n t e x c e p t t h e c o n d i t i o n
d u r i n g t h e first t h r e e q u a r t e r s o f t h e F i n a n c i a l Y e a r e n d e d o n 3 1 s t M a r c h , 2 0 0 7 .
of Board
Delhi
Date : J u l y 3 1 , 2007
C. A. M U K E S H DUA
Partner
( M . N o . 85323)
14
Auditors' Report
TO THE M E M B E R S OF
RELAXO FOOTWEARS LTD.
We have audited the a t t a c h e d B a l a n c e S h e e t of R E L A X O F O O T W E A R S L I M I T E D as at 31 st M a r c h , 2007 and also t h e Profit
a n d Loss a c c o u n t for t h e y e a r e n d e d o n t h a t d a t e a n n e x e d t h e r e t o a n d C a s h F l o w S t a t e m e n t for t h e y e a r e n d e d o n t h a t
d a t e . T h e s e f i n a n c i a l s t a t e m e n t s a r e t h e responsibility o f t h e C o m p a n y ' s M a n a g e m e n t . O u r responsibility i s t o express a n
opinion on these financial statements based on ouraudit.
1. We c o n d u c t e d our audit in a c c o r d a n c e w i t h auditing s t a n d a r d s generally a c c e p t e d in India. Those s t a n d a r d s require
t h a t w e plan a n d p e r f o r m t h e a u d i t t o o b t a i n r e a s o n a b l e a s s u r a n c e a b o u t w h e t h e r t h e f i n a n c i a l s t a t e m e n t s a r e f r e e o f
material misstatement. An audit includes e x a m i n i n g , on a test basis, evidence supporting the a m o u n t s and
d i s c l o s u r e s i n f i n a n c i a l s t a t e m e n t s . A n a u d i t also i n c l u d e s a s s e s s i n g t h e a c c o u n t i n g principles u s e d a n d s i g n i f i c a n t
estimates m a d e by the M a n a g e m e n t , as well as evaluating the overall financial statement presentation. We believe
t h a t our a u d i t p r o v i d e s a r e a s o n a b l e basis for o u r o p i n i o n .
2 . A s r e q u i r e d b y t h e C o m p a n i e s ( A u d i t o r s ' R e p o r t ) Order, 2 0 0 3 (as a m e n d e d ) issued b y t h e C e n t r a l G o v e r n m e n t o f India
i n t e r m s o f s u b s e c t i o n (4A) o f s e c t i o n 227 o f t h e C o m p a n i e s A c t , 1956. W e e n c l o s e i n t h e A n n e x u r e h e r e t o a s t a t e m e n t
on t h e m a t t e r s s p e c i f i e d in p a r a g r a p h s 4 a n d 5 of t h e said Order.
3.
Further t o o u r c o m m e n t s i n t h e a n n e x u r e referred t o i n p a r a g r a p h 2 a b o v e , w e r e p o r t t h a t :
(a) W e h a v e o b t a i n e d all t h e i n f o r m a t i o n a n d e x p l a n a t i o n s w h i c h t o t h e best o f o u r k n o w l e d g e a n d belief w e r e
necessaryforthe purposes of o u r a u d i t ;
(b)
(c)
(d)
In o u r o p i n i o n , p r o p e r b o o k s of a c c o u n t as r e q u i r e d by l a w h a v e b e e n kept by t h e C o m p a n y so far as it a p p e a r s
f r o m o u r e x a m i n a t i o n of such books ;
T h e B a l a n c e S h e e t , Profit a n d Loss A c c o u n t a n d C a s h F l o w S t a t e m e n t d e a l t w i t h b y this r e p o r t a r e i n a g r e e m e n t
with the books of a c c o u n t ;
I n o u r o p i n i o n t h e B a l a n c e S h e e t , Profit & Loss A c c o u n t a n d C a s h F l o w S t a t e m e n t d e a l t w i t h b y t h i s r e p o r t c o m p l y
w i t h t h e m a n d a t o r y A c c o u n t i n g S t a n d a r d s referred i n s u b - s e c t i o n (3C) o f s e c t i o n 2 1 1 o f t h e C o m p a n i e s A c t ,
1956.
(e)
(f)
I n o u r o p i n i o n a n d t o t h e best o f o u r i n f o r m a t i o n a n d a c c o r d i n g t o t h e e x p l a n a t i o n s g i v e n t o u s , t h e said f i n a n c i a l
s t a t e m e n t s , r e a d t o g e t h e r w i t h t h e s i g n i f i c a n t a c c o u n t i n g policies a n d o t h e r n o t e s t h e r e o n a n d f o r m i n g part o f
t h e a c c o u n t s g i v e n i n s c h e d u l e X I I I g i v e t h e i n f o r m a t i o n r e q u i r e d b y t h e C o m p a n i e s A c t , 1956 i n t h e m a n n e r s o
r e q u i r e d a n d p r e s e n t a t r u e a n d fair v i e w , i n c o n f o r m i t y w i t h t h e a c c o u n t i n g principles g e n e r a l l y a c c e p t e d i n
India ;
(i)
(ii)
Place
D
Delhi
May26,2007
Partner
M.No.85323
15
Auditors' Report
A N N E X U R E TO THE AUDITORS' REPORT OF RELAXO FOOTWEARS LIMITED FOR THE Y E A R ENDED 3 1
2007
s t
MARCH,
In r e s p e c t of its fixed a s s e t s :
(a)
(b)
(c)
2.
In r e s p e c t of its i n v e n t o r i e s :
(a)
(b)
(c)
3.
T h e C o m p a n y has m a i n t a i n e d p r o p e r r e c o r d s s h o w i n g full p a r t i c u l a r s , i n c l u d i n g q u a n t i t a t i v e d e t a i l s a n d
s i t u a t i o n o f fixed a s s e t s .
A s e x p l a i n e d t o us, t h e fixed a s s e t s h a v e b e e n physically v e r i f i e d b y t h e M a n a g e m e n t a t all l o c a t i o n s a t
reasonable intervals. No material discrepancies b e t w e e n book records and the physical inventories have
been noticed on such verification.
In o u r o p i n i o n , t h e c o m p a n y has not d i s p o s e d off a n y s u b s t a n t i a l / m a j o r part of fixed a s s e t s d u r i n g t h e
y e a r a n d g o i n g c o n c e r n s t a t u s o f t h e C o m p a n y i s not a f f e c t e d .
A s e x p l a i n e d t o u s , i n v e n t o r i e s w e r e physically v e r i f i e d b y t h e m a n a g e m e n t a t r e a s o n a b l e i n t e r v a l s d u r i n g
t h e year.
In our opinion a n d according to t h e information and explanations given to us, t h e procedures of physical
v e r i f i c a t i o n o f i n v e n t o r y f o l l o w e d b y t h e m a n a g e m e n t a r e r e a s o n a b l e a n d a d e q u a t e i n r e l a t i o n t o t h e size
o f t h e C o m p a n y a n d t h e n a t u r e o f its b u s i n e s s .
I n o u r o p i n i o n a n d a c c o r d i n g t o t h e i n f o r m a t i o n a n d e x p l a n a t i o n s g i v e n t o u s , t h e C o m p a n y has
m a i n t a i n e d p r o p e r r e c o r d s o f its i n v e n t o r i e s . A s e x p l a i n e d t o u s , n o m a t e r i a l d i s c r e p a n c i e s w e r e n o t i c e d
on physical verification of inventories as c o m p a r e d to the book records.
T h e r e i s n o o v e r d u e a m o u n t o f l o a n s t a k e n a s r e f e r r e d t o i n (a) a b o v e .
4.
In our opinion and according to t h e information and explanations given to us, there are a d e q u a t e internal
c o n t r o l p r o c e d u r e s c o m m e n s u r a t e w i t h t h e size o f t h e C o m p a n y a n d t h e n a t u r e o f its b u s i n e s s , f o r t h e
p u r c h a s e o f i n v e n t o r y a n d fixed a s s e t s a n d for t h e sale o f g o o d s a n d s e r v i c e s . D u r i n g t h e c o u r s e o f o u r a u d i t ,
no major w e a k n e s s e s have been noticed in the internal c o n t r o l .
5.
In r e s p e c t of c o n t r a c t s or a r r a n g e m e n t s t h a t n e e d to be e n t e r e d in t h e register m a i n t a i n e d in p u r s u a n c e of
section 301 of the C o m p a n i e s A c t , 1956:
(a) T o t h e best o f o u r k n o w l e d g e a n d belief a n d a c c o r d i n g t o t h e i n f o r m a t i o n a n d e x p l a n a t i o n s g i v e n t o u s ,
p a r t i c u l a r s o f c o n t r a c t s o r a r r a n g e m e n t s t h a t n e e d t o b e e n t e r e d into t h e register, h a v e b e e n s o e n t e r e d .
(b) A c c o r d i n g t o t h e i n f o r m a t i o n a n d e x p l a n a t i o n s g i v e n t o u s , t h e t r a n s a c t i o n s m a d e i n p u r s u a n c e o f s u c h
c o n t r a c t s o r a r r a n g e m e n t s e x c e e d i n g t h e v a l u e o f R s . f i v e lacs h a v e b e e n e n t e r e d into d u r i n g t h e y e a r a t
prices w h i c h a r e p r i m a f a c i e r e a s o n a b l e h a v i n g r e g a r d t o t h e p r e v a i l i n g m a r k e t prices a t t h e r e l e v a n t t i m e .
6.
16
Auditors' Report
a n y d e p o s i t w i t h i n t h e meaning of Section 5 8 A and Section 58AA o f t h e C o m p a n i e s Act, 1956.
7.
I n o u r o p i n i o n , t h e C o m p a n y h a s a n i n t e r n a l a u d i t s y s t e m c o m m e n s u r a t e w i t h t h e size a n d n a t u r e o f its
business.
8.
O n t h e basis o f r e c o r d s p r o d u c e d w e a r e o f t h e o p i n i o n t h a t p r i m a f a c i e cost r e c o r d s a n d a c c o u n t s p r e s c r i b e d b y
t h e C e n t r a l G o v e r n m e n t u n d e r s e c t i o n 2 0 9 (1) o f t h e C o m p a n i e s A c t , 1956 i n r e s p e c t o f p r o d u c t s o f t h e
C o m p a n y c o v e r e d u n d e r t h e rules u n d e r s a i d s e c t i o n h a v e b e e n m a i n t a i n e d .
9.
In respect of s t a t u t o r y d u e s :(a) A c c o r d i n g t o t h e r e c o r d s o f t h e C o m p a n y , u n d i s p u t e d s t a t u t o r y d u e s i n c l u d i n g P r o v i d e n t F u n d , I n v e s t o r
E d u c a t i o n a n d P r o t e c t i o n F u n d , E m p l o y e e s ' S t a t e I n s u r a n c e , I n c o m e Tax, S a l e s Tax, W e a l t h Tax, S e r v i c e
Tax, C u s t o m s D u t y , C e s s a n d o t h e r s t a t u t o r y d u e s h a v e b e e n g e n e r a l l y regularly d e p o s i t e d w i t h t h e
appropriate authorities.
According to the information and explanations given to us, no undisputed
a m o u n t s p a y a b l e i n respect o f t h e a f o r e s a i d d u e s w e r e o u t s t a n d i n g a s a t 3 1 s t M a r c h , 2 0 0 7 f o r a p e r i o d o f
m o r e t h a n six m o n t h s f r o m t h e d a t e o f b e c o m i n g p a y a b l e .
(b)
S.No.
1.
2.
T h e d i s p u t e d s t a t u t o r y d u e s a g g r e g a t i n g t o R s . 6 8 . 1 8 lacs, t h a t h a v e not b e e n d e p o s i t e d o n a c c o u n t
of matters pending before appropriate authorities are as under:
Name of the
Statute
Haryana G e n e r a l
Sales Tax Act, 1973
Name of the
Dues
Purchase Tax for the A . Y
2001-02
2002-03
Forum w h e r e
d i s p u t e is p e n d i n g
Amount
(Rs. in lacs)
19.89
14.24
L A D A Tax 2 0 0 6 - 0 7
17.79
5.95
(Qtr. E n d i n g M a r c h , 2 0 0 7 )
3.
Rajasthan
Sales Tax Act
S a l e s Tax 2 0 0 4 - 0 5
D.C. of C o m m e r c i a l Tax,
Bharatpur, Rajasthan
4.
ESI A c t , 1948
ESI
Civil J u d g e S e n i o r Division C u m
d e s i g n a t e d ESI Court, R o h t a k ( H a r y a n a )
10.31
Total
68.18
Contribution
10.
11.
B a s e d o n t h e a u d i t p r o c e d u r e s a n d o n t h e basis o f i n f o r m a t i o n a n d e x p l a n a t i o n s g i v e n b y t h e m a n a g e m e n t , w e
a r e o f t h e o p i n i o n t h a t t h e C o m p a n y has not d e f a u l t e d i n t h e r e p a y m e n t o f d u e s t o a n y f i n a n c i a l i n s t i t u t i o n a n d
banks.
12.
13.
17
Auditors' Report
14.
T h e C o m p a n y i s not d e a l i n g o r t r a d i n g
in shares, securities, debentures and other investments, therefore
r e q u i r e m e n t o f m a i n t e n a n c e o f p r o p e r r e c o r d s o f s u c h t r a n s a c t i o n s a n d c o n t r a c t s d o e s not a r i s e .
15.
A c c o r d i n g t o i n f o r m a t i o n a n d e x p l a n a t i o n s g i v e n t o u s t h e C o m p a n y h a s not g i v e n a n y g u a r a n t e e for l o a n s
taken by others from Banks or Financial Institutions.
16.
17.
A c c o r d i n g to the cash flow statement and other records examined by us and according to t h e information and
e x p l a n a t i o n s g i v e n t o u s , o n a n o v e r a l l b a s i s , f u n d s raised o n s h o r t t e r m basis h a v e , p r i m a f a c i e , not b e e n u s e d
d u r i n g t h e y e a r f o r long t e r m i n v e s t m e n t .
18.
D u r i n g t h e y e a r , t h e C o m p a n y h a s not m a d e a n y p r e f e r e n t i a l a l l o t m e n t o f s h a r e s t o p a r t i e s a n d C o m p a n i e s
c o v e r e d i n t h e register m a i n t a i n e d u n d e r S e c t i o n 301 o f t h e C o m p a n i e s A c t , 1 9 5 6 .
19.
20.
21.
T o t h e best o f o u r k n o w l e d g e a n d belief a n d a c c o r d i n g t o t h e i n f o r m a t i o n a n d e x p l a n a t i o n s g i v e n t o u s , n o
fraud on or by the C o m p a n y w a s noticed or reported during the year that causes the financial statements to be
materially misstated.
For G U P T A S J H U N J H U N W A L A
Chartered Accountants
CA.
P l a c e : Delhi
M U K E S H DUA
Partner
M .
Dated: May26,2007
18
Schedule
31.03.2007
A s st
31.03.2006
S O U R C E S OF FUNDS
S H A R E H O L D E R S ' FUNDS
Share
Capital
600.06
4531.38
LOAN
FUNDS
III
D E F E R R E D TAX LIABILITY
( S e e N o t e N o . 15)
TOTAL
600.06
3996.60
5131.44
4596.66
6010.58
4312.67
888.06
804.57
12030.08
9713.90
A P P L I C A T I O N OF FUNDS
IV
FIXED A S S E T S
G r o s s Block
Less : D e p r e c i a t i o n
NET BLOCK
Capital work-in-progress
11057.91
3424.49
10191.39
2640.67
7633.42
1718.94
7550.72
50.54
9352.36
INVESTMENTS
CURRENT A S S E T S , L O A N S
& ADVANCES
VI
Inventories
Sundry Debtors
Cash & Bank Balances
Loans & A d v a n c e s
L E S S : C U R R E N T LIABILITIES
& PROVISIONS
2236.85
1516.24
360.33
770.98
1525.30
1776.71
243.91
598.86
4884.40
4144.78
1802.48
410.34
1837.78
200.50
2212.82
2038.28
VII
C u r r e n t Liabilities
Provisions
NET C U R R E N T A S S E T S
TOTAL
Accounting
7601.26
6.14
6.14
2671.58
2106.50
12030.08
9713.90
XIII
Dated :
Delhi
M a y 26, 2007
RAMESH
K U M A R DUA
M a n a g i n g Director
S U S H I L BATRA
SANDEEP CHANDNA
M U K A N D LAL DUA
C o m p a n y Secretary
W h o l e T i m e Director
19
LnjTJTJTJTJTJTJTJ-TJ-LT
2006-07
2005-06
23593.48
20085.85
423.15
(519.22)
94.14
97.55
24110.77
19664.18
IX
16765.37
13939.24
1697.53
1277.19
XI
2743.33
2528.49
Finance Charges
XII
951.82
728.41
22158.05
18473.33
1952.72
1190.85
830.17
733.32
1122.55
457.53
Schedule
INCOME
Sales
I n c r e a s e / ( D e c r e a s e ) in stock
VIII
Other Income
TOTAL
EXPENDITURE
Material & M a n u f a c t u r i n g Expenses
P e r s o n n e l Expenses
TOTAL
Profit
Before
Depreciation
Depreciation
P r o f i t B e f o r e Tax
Less:
Provisions
360.00
86.50
- F r i n g e B e n e f i t Tax
19.50
23.50
- D e f e r r e d Tax
83.49
21.68
659.56
325.85
- C u r r e n t Tax
Profit A f t e r Tax
B a l a n c e b/f f r o m p r e v i o u s y e a r
301.40
243.56
A d d / ( L e s s ) : Prior period a d j u s t m e n t s
274.09
37.27
933.65
664.52
Dividend
90.01
90.01
Tax o n D i v i d e n d
15.30
12.62
500.00
300.00
S u r p l u s carried t o B a l a n c e S h e e t
328.34
261.89
TOTAL
933.65
664.52
5.50
2.72
30.53
A m o u n t a v a i l a b l e for a p p r o p r i a t i o n
APPROPRIATIONS
Transfer to
General
Reserve
XIII
RAMESH
Managing
K U M A R DUA
Director
Place :
Delhi
SUSHIL BATRA
SANDEEP CHANDNA
M U K A N D LAL DUA
Dated :
Company
W h o l e Time Director
20
Secretary
Particulars
2006-07
2005-06
1122.55
457.53
FOR
Depreciation
830.17
Financial Expenses
951.82
I nterest Received
(6.81)
Prior Period a d j u s t m e n t
30.53
Capital Subsidy
728.41
(1.24)
37.27
15.00
0.00
Donation
(18.33)
(50.00)
(0.87)
4.52
733.32
1951.09
2882.78
FOR
260.47
322.20
Inventories
(711.55)
745.19
(172.12)
(132.34)
I n c o m e Tax
(187.21)
(114.21)
Trade Payables
(182.93)
37.20
164.54
(189.08)
2053.98
2620.05
(2723.02)
(1357.53)
137.23
4.10
O t h e r Current Liabilities
Net cash f l o w f r o m o p e r a t i n g activities
CASH FLOW F R O M I N V E S T I N G ACTIVITIES :
P u r c h a s e o f Fixed A s s e t s
Fixed A s s e t s s o l d / d i s c a r d e d
Interest Received
6.81
1.24
(2578.98)
(1352.19))
1697.91
(614.49)
Dividend Paid
(102.63)
(102.63)
Financial Expenses
(951.82)
(728.41)
(643.46)
(1445.53)
Net C a s h u s e d i n i n v e s t i n g a c t i v i t i e s
CASH
FLOW FROM
FINANCING ACTIVITIES
118.46
(177.67)
238.93
416.60
357.39
238.93
A s per o u r r e p o r t o f e v e n d a t e
FOR GUPTA & J H U N J H U N W A L A
Chartered Accountants
CA. M U K E S H DUA
Partner
M.NO. 85323
RAMESH
Managing
Place :
Delhi
SUSHIL BATRA
SANDEEP
Dated :
M a y 2 6 , 2007
Company
21
CHANDNA
Secretary
K U M A R DUA
Director
M U K A N D LAL D U A
W h o l e Time Director
UTJTJTJTJTJTJTJ-LTLrLr'
SCHEDULE - I
SHARE CAPITAL
( Rs. in Lacs )
As at
Particulars
31.03.2007
A s at
31.03.2006
AUTHORISED
2,00,00, 000 E q u i t y S h a r e s of R s . 5/- e a c h .
1,000.00
1,000.00
600.06
600.06
I S S U E D , S U B S C R I B E D AND PAID UP
1 , 2 0 , 0 1 , 2 0 0 E q u i t y S h a r e s o f R s . 5/- e a c h f u l l y p a i d .
(Includes
1,02,28,600
Capitalisation
Total
fully
of General
paid B o n u s S h a r e s issued by
600.06
15.36
0.36
0.00
15.00
S C H E D U L E - II
RESERVES
(A)
AND
SURPLUS
CAPITAL RESERVE
As per Last Balance Sheet
A d d : Capital subsidy received during the year
T o t a l (A)
15.36
15.36
73.94
73.94
3,663.74
3,363.74
Total
500.00
4,163.74
300.00
3,663.74
328.34
261.89
50.00
18.33
278.34
243.56
4,531.38
3,996.60
(B)
SHARE P R E M I U M ACCOUNT
(C)
GENERAL RESERVE
As per Last B a l a n c e
(D)
Sheet
(C)
Less : D o n a t i o n
Total ( D)
T o t a l (A + B + C + D)
22
S C H E D U L E - III
LOAN
FUNDS
( Rs. in Lacs )
As a t
Particulars
A s at
31.03.2007
31.03.2006
2,194.89
1800.00
18.87
10.78
2,213.76
1,810.78
1033.57
523.70
3,247.33
2,334.48
654.65
352.65
1742.92
1368.21
10.09
0.00
(A) S E C U R E D LOAN
FROM BANK
(I)
TERM
-
LOAN
(A)
(B) U N S E C U R E D LOANS
-
F r o m Directors
From Others
F r o m Financial Institution
I n t e r e s t A c c r u e d & d u e on L o a n s
180.88
107.21
174.71
150.12
Total ( B )
2,763.25
1,978.19
Total
6,010.58
4,312.67
520.00
400.00
(A+B)
T e r m l o a n i s s e c u r e d b y first c h a r g e o n e x i s t i n g a n d p r o p o s e d f i x e d a s s e t s o f t h e C o m p a n y .
Working
capital
l o a n i s s e c u r e d b y first c h a r g e o n c u r r e n t a s s e t s , i n v e n t o r i e s a n d b o o k - d e b t s o f t h e C o m p a n y . T h e s e l o a n s a r e
further secured
building i n t h e n a m e o f three
Directors of
the Company
including
Managing
residential
land
and
Director and W h o l e T i m e
23
SCHEDULE-IV
FIXED
ASSETS
(Rs. in L a c s )
GROSS
A s at
ASSETS
NO
Additions
01.04.2006
TANGIBLE
BLOCK
Total
As at
For t h e
Deletions/
Total
As at
As at
Adjustments
As at
01.04.2006
Year
Adjustments
A s at
31.03.2007
31.03.2006
31.03.2007
A
NET
DEPRECIATION
BLOCK
Deletions/
31.03.2007
ASSETS
L A N D - FREE H O L D
- LEASE H O L D
261.82
0.00
0.00
261.82
0.00
0.00
0.00
0.00
261.82
261.82
478.61
27.45
0.00
506.06
0.00
0.00
0.00
0.00
506.06
478.61
BUILDING
1031.88
39.16
0.00
1071.04
201.52
43.67
0.00
245.19
825.85
830.36
6125.67
448.78
142.58
6431.87
1720.57
459.68
29.49
2150.76
4281.11
4405.10
1325.09
371.70
22.29
1674.50
389.61
242.62
0.00
632.23
1042.27
935.48
0.00
159.83
1 1225
24.52
0.00
136.77
23.06
30.02
243.28
54.39
20.67
16.33
58.73
184.55
136.03
40.97
MOULDS
COMPUTER
142.27
17.56
MOTOR VEHICLE-OTHERS
190.42
73.91
21.05
65.47
1422
0.00
79.69
24.50
8.34
0.00
32.84
46.85
F U R N I T U R E & FIXTURE
89.36
27.44
0.17
116.63
16.79
6.43
0.01
23.21
93.42
72.57
ELECTRIC FITTINGS
349.00
9.13
0.00
358.13
69.80
16.90
0.00
86.70
271.43
279.20
10 OFFICE EQUIPMENT
91.98
22.87
2.01
112.84
17.41
5.00
0.52
21.89
90.95
74.57
II
31.57
0.10
0.00
31.67
31.44
0.23
0.00
31.67
0.00
0.13
10183.14
1052.32
188.10
1047.36
2638.28
828.06
46.35
3419.99
7627.37
7544.86
W O O D E N STRUCTURE
TOTAL
(A)
INTANGIBLE
S O F T W A R E PROGRAMMES
0.72
2.30
0.00
3.02
0.13
0.60
0.00
0.73
2.29
0.59
TECHNICAL
7.53
0.00
0.00
7.53
2.26
1.51
0.00
3.77
3.76
5.27
8.25
2.30
0.00
10191.39
1054.62
188.10
1306.98
18.67
ASSETS
KNOW-HOW
T O T A L (B)
TOTAL(A+B)
PREVIOUS
YEAR
10.55
1
1057.91
10191.39
2.39
2.11
0.00
4.50
6.05
5.86
2640.67
830.17
46.35
3424.49
7633.42
7550.72
733.32
15.43
2640.67
7550.72
Notes
No write off has been made in respect of lease hold land, since the lease are granted to the Company for a long period.
LrLnJTJTJTJTJTJTJT-TLr'
INVESTMENTS
A s at
Particulars
A s at
31.03.2007
31.03.2006
0.13
0.13
6.01
6.01
6.14
6.14
Stock in T r a d e *
1000.26
668.05
Stock in Process
378.22
286.26
Raw
798.27
515.49
60.10
55.50
2,236.85
1,525.30
34.86
46.48
LONG T E R M
I N V E S T M E N T IN GOVT. S E C U R I T I E S
National Saving Certificates
( p l e d g e d w i t h s a l e s tax a u t h o r i t i e s )
IN EQUITY SHARES ( UN-QUOTED FULLY PAID)) (AT COST)
6040 equity shares of Rs. 100/- e a c h of Relaxo R u b b e r s Pvt. Ltd.
an associate C o m p a n y , includes 30 b o n u s shares
Total
S C H E D U L E - VI
C U R R E N T A S S E T S . LOANS A N D A D V A N C E S
A.CURRENT ASSETS
I INVENTORIES
( As t a k e n , v a l u e d a n d certified by t h e M a n a g e m e n t )
Material *
SUNDRY DEBTORS
(Unsecured)
M o r e t h a n six m o n t h s
-
Considered good
Considered
Others**-
doubtful
4-1-.89
Considered good
75.11
1,481.38
1,730.23
1,558.12
1,851.82
41.89
75.11
1,516.24
1,776.71
15.61
5.55
264.67
194.78
80.05
43.58
In C u r r e n t A c c o u n t s
In Fixed D e p o s i t s
25
360.33
243.91
4113.42
3545.92
UTJTJTJTJTJTJTJ-LTLTLr
S C H E D U L E - VI ( C o n t d . )
A s at
31.03.2007
Particulars
A s at
31.03.2006
B. LOANS & A D V A N C E S
(Unsecured- considered good)
A d v a n c e s r e c o v e r a b l e in c a s h or in kind
or for v a l u e to be received
Advances to suppliers***
Loans
Security Deposits
T o t a l ( B)
Total ( A + B )
85.53
91.95
507.94
350.40
5.30
5.60
172.21
150.91
770.98
598.86
4,884.40
4,144.78
* Includes goods-in-transit of Rs. 1.02 Lacs in Stock in t r a d e & Rs. 4 1 . 6 5 Lacs in R a w Material (Previous year Rs. 134.85 Lacs)
**
I n c l u d e s R s . 0.66 L a c s f r o m a f i r m , i n w h i c h D i r e c t o r s a r e i n t e r e s t e d ( P r e v i o u s y e a r R s . 7 2 . 9 9 L a c s )
C U R R E N T LIABILITIES
Sundry
Creditors
Capital goods
52.87
33.23
64.91
44.94
Others
1,114.40
1,336.94
93.46
442.95
322.10
Unclaimed Dividend
1.78
2.13
2.94
4.98
1,802.48
1,837.78
O t h e r Liabilities
Total
B.
122.63
(A)
PROVISIONS
203.62
24.98
Proposed Dividend
90.01
90.01
D i v i d e n d Tax
15.30
12.62
87.01
72.14
Taxation ( I n c l u d i n g F B T ) *
Leave
Encashment
I n t e r e s t o n I n c o m e Tax
Total( B)
Total
(A+B)
14.40
0.75
410.34
200.50
2,212.82
2,038.28
2006-07
2005-06
* A f t e r s e t t i n g off T D S a n d A d v a n c e t a x p a i d .
S C H E D U L E - VIII
INCREASE / ( D E C R E A S E ) IN STOCK
C L O S I N G STOCK
Stock-in-Trade
999.24
668.05
Stock-in-Process
378.22
286.26
1,377.46
954.31
Stock-in-Trade
668.05
1,230.10
Stock-in-Process
286.26
243.43
954.31
1,473.53
423.15
(519.22)
OPENING
STOCK
Total
26
LiTjarLTLrUTJTJTJ-Lnj"
( R s . in Lacs)
EXPENSES
Particulars
2006-07
2005-06
i)
P u r c h a s e s (Trading G o o d s )
4,927.77
6,001.96
ii)
Raw Material C o n s u m e d
8,694.45
5,675.72
iii)
Packing Material C o n s u m e d
1,385.46
930.37
iv)
Manufacturing
1,347.44
970.76
7.27
11.44
138.12
75.94
14.74
17.96
Expenses
P o w e r & Fuel
Repairs-Building
Repairs-Machinery
Repairs-others
Hire, P r o c e s s i n g , & o t h e r s c h a r g e s
T o t a l (iv)
Total (i+ii+iii+iv)
250.12
255.09
1,757.69
1,331.19
16.765.37
13,939.24
1,538.66
1,128.32
106.47
105.62
SCHEDULE - X
PERSONNEL
Salaries,
EXPENSES
Wages,
Bonus
& Allowances
52.40
43.25
1,697.53
1,277.19
204.70
147.57
SCHEDULE-XI
A D M I N I S T R A T I V E . SELLING A N D OTHER E X P E N S E S
Rent
Insurance
Travelling & C o n v e y a n c e
Advertisement &
Publicity
Sales
&
55.38
52.28
146.69
117.08
714.21
667.44
1,041.73
1,013.40
Remuneration to Auditors
9.04
7.95
T a x & Fee
6.10
6.02
Repairs & M a i n t e n a n c e
52.67
40.79
B a d D e b t s w r i t t e n off
30.18
19.94
2.84
15.84
Promotion
Incentives
165.51
209.88
22.87
21.83
Communication
55.98
52.19
expenses
Security expenses
55.81
52.61
58.56
25.29
4.52
0.32
116.54
78.06
2,743.33
2,528.49
469.48
28.74
453.60
951.82
377.43
17.12
333.86
728.41
S C H E D U L E - XII
FINANCE C H A R G E S
Interest
Bank Charges
Cash Discount
Total
27
LnjTjTjTjTjTjanj~irLT
SIGNIFICANT ACCOUNTING
A.
1.
POLICIES AND
NOTES ON A C C O U N T S
ACCOUNTING
CONVENTION
in accordance
Companies Act,
1956.
FIXED A S S E T S
Fixed
assets
are
depreciation.
All
stated
at
historical
costs including
cost
of
acquisition
construction
less
accumulated
have been
reduced from
Expenditure during
construction
period
is
included
under Capital
Work-in-Progress
impairment
loss i s
recognised,
w h e n e v e r carrying v a l u e of fixed
market
v a l u e o r v a l u e in use, w h i c h e v e r is higher.
3.
DEPRECIATION
Depreciation
prescribed
has
in
been
provided
on straight-line method
over the
period
of their useful
lives
in
1956.
period.
(SLM)
at the
rates a n d
in the manner
lives w h i c h e v e r i s lower.
land
is
not
i m p r o v e m e n t s are
Standard
on
4.
INVENTORIES
Inventories a r e v a l u e d as u n d e r :
-
Stock in
Trade,
Raw
Material,
Packing
Material
and
Fuel
at cost
or
net
realisable v a l u e ,
w h i c h e v e r is lower.
-
Stock in process :
5.
RETIREMENT
BENEFITS
Contributions to
M a s t e r Policy of G r o u p I n s u r a n c e S c h e m e in
determined
b a s e d o n a c t u a r i a l v a l u a t i o n c a r r i e d o u t b y Life I n s u r a n c e C o r p .
28
paid/payable as
of India
(L.I.C.)
is
LAAALrAAuAJAJA-n-n-ALA'
6.
REVENUE
RECOGNITION
7.
RESEARCH
Capital
& DEVELOPMENT
expenditure
on
Research
and
Development
is
capitalised
assets.
8.
items having
9.
TAX ON
INCOME
P r o v i s i o n f o r C u r r e n t Tax i s m a d e a s p e r t h e p r o v i s i o n s o f I n c o m e Tax A c t ,
recognised
on timing
difference
between the
1961.
D e f e r r e d tax is
profit for t h e y e a r a n d
quantified
u s i n g t h e tax rates a n d l a w e n a c t e d o r s u b s t a n t i v e l y e n a c t e d a s o n t h e B a l a n c e S h e e t d a t e .
Deferred
tax
assets
are
recognised
and
carried
forward
only
to
the
extent
that
there
is
10.
a).
FOREIGN
CURRENCYTRANSACTIONS
rates
last
prevailing
difference
on
on
day
settlement
i n c o m e or expenses in
E x c h a n g e difference on
of financial
of foreign
year.
currency
The
difference
transactions
thereon
during
the
and
year
the date
are translated
also
are
the
at the
exchange
recognised
as
Derivative transactions are considered as off-balance sheet items and cash flows arising t h e r e o n
are recognised in the books o f a c c o u n t as and w h e n the settlements take place in a c c o r d a n c e with
the terms of the
12.
C o n t i n g e n t liabilities, if m a t e r i a l , are d i s c l o s e d by w a y of n o t e s .
INVESTMENTS
Long Term Investments are stated at cost.
29
LnrLruTjTjTjnjTj-i_n_r
NOTES
ON
ACCOUNTS
C o n t i n g e n t Liabilities :-
1.
L e t t e r s o f c r e d i t o u t s t a n d i n g w i t h b a n k R s . 2 4 0 . 3 4 l a c s - ( P r e v i o u s Y e a r R s . 1 5 6 . 1 9 lacs)
ii.
iii. T h e C o m p a n y h a s e x e c u t e d s u r e t y b o n d s i n f a v o u r o f S a l e s Tax A s s e s s i n g A u t h o r i t i e s o n b e h a l f o f s u p p l i e r s
o f m a t e r i a l s a g g r e g a t i n g t o R s . 2 8 . 2 3 l a c s . ( P r e v i o u s Y e a r R s . 2 8 . 2 3 lacs)
iv. E a s t i m a t e d
a m o u n t of contracts
remaining to
be
executed
on
capital
account and
not
provided
for
C l a i m a g a i n s t t h e C o m p a n y not a c k n o w l e d g e d a s d e b t s .
a ) T h e S a l e s Tax D e p a r t m e n t h a s r a i s e d a d e m a n d o f R s . 4 0 . 0 8 l a c s ( P r e v i o u s Y e a r R s . 3 4 . 1 3 lacs) i n r e s p e c t o f
p u r c h a s e tax, interest & penalty . T h e C o m p a n y has filed a p p e a l s w i t h A p p e l l a t e A u t h o r i t i e s w h i c h are
p e n d i n g d i s p o s a l a n d h e n c e n o p r o v i s i o n h a s b e e n m a d e . A n a m o u n t o f R s . 1 7 . 7 9 lacs a g a i n s t L o c a l A r e a
D e v e l o p m e n t Tax i n H a r y a n a h a s n o t b e e n p a i d . T h e a p p e a l h a s b e e n f i l e d a n d i s p e n d i n g f o r d i s p o s a l . T h e
provision o f s a m e has b e e n m a d e .
b ) R e g u l a r I n c o m e Tax A s s e s s m e n t h a s b e e n c o m p l e t e d
u p t o A s s e s s m e n t Y e a r 2 0 0 4 - 0 5 . T h e I n c o m e Tax
lacs ( P r e v i o u s Y e a r - R s . 10.31
lacs) last y e a r i n r e s p e c t o f
3.
U n s e c u r e d l o a n s f r o m F i n a n c i a l I n s t i t u t i o n r e p r e s e n t bill d i s c o u n t i n g o f p u r c h a s e s m a d e f r o m S S I u n i t s . T h e
s a m e has been t a k e n f r o m S I D B I under Direct Discounting C o m p o n e n t S c h e m e .
4.
S h o e Project (Haridwar)
21.44
2.83
Rent
0.98
E x p e n d i t u r e on test run
0.16
Misc expenses
Total p r e - o p e r a t i v e expenses
2.13
27.54
NIL
( P r e v i o u s Year)
5.
6.
Interest cost is net of Rs. 29.17 lacs earned on Foreign Currency derivative transactions concluded during the year.
Managerial Remuneration Paid/Payable for the Year ended 31.03.2007 (Excluding contribution to Gratuity Fund on
actuarial basis)
30
LnjTjnjAJTXUT-rLrLrLr
2005-06
Salary
60.00
60.00
Commission*
60.79
Particulars
7.20
C o n t r i b u t i o n to P.F
7.20
Sitting fees
0.23
0.37
128.22
67.57
TOTAL
C o m p u t a t i o n o f Net Prof i t a s
Companies Act.
per S e c t i o n 349
198 o f T h e
1956
(Rs. in Lacs'
2006-07
Particulars
2005-06
1122.55
Net profit
Add : Managerial Remuneration
457.53
127.99
67.20
2.84
15.84
135.35
4.52
83.04
1257.90
Less :
Donation
50.00
P r o f i t o n s a l e o f Fixed A s s e t s
Net
540.57
18.33
0.00
50.00
Profit
0.87
19.20
1207.90
521.37
120.79
52.14
* T o t a l r e m u n e r a t i o n a l l o w a b l e U/s 198 r e a d w i t h s e c t i o n 3 0 9 ( 5 ) =
( 1 0 % of net profit)
L e s s : R e m u n e r a t i o n p a i d o n m o n t h l y basis
60.00
60.79
60.00
7. Certain balances of Sundry Debtors, Creditors and Advances from Customers are subject to confirmation.
8.
a)
A D D I T I O N A L I N F O R M A T I O N R E Q U I R E D U N D E R S C H E D U L E V I O F THE C O M P A N I E S A C T , 1956.
Details as regard
:
( R s . in Lacs )
Opening Stock
Value
Qty.
Particulars
Unit
Footwears
Pair
6.02
(in lacs)
(16.09)
Others
Purchase
Qty.
Value
462.74
(800.42)
I47.I4
67.96
(136.82)
(-)
(-)
b)
Sales
4,508.47
(5,425.11)
419.30
(576.85)
Closing I S t o c k
Value
Qty.
Qty.
Value
66.26
5,158.80
(6,610.36)
551.44
(439.99)
(146.89)
(-)
7.72
(6.02)
(-)
696.54
(462.74)
50.79
(147.14)
Particulars
H a w a i Slippers
Unit
Installed
Capacity
Per day
Opening Stock
Value
Qty.
Production
Qty.
Sales
(Qty.)
Value
17,883.24
Pair
2.50
1.84
58.17
459.75
453.49
(in lacs)
(2.50)
(17.13)
(429.68)
(343.20)
(358.49) (13,035.50)
Notes:
I) No industrial licence is required to manufacture any of the products of the Company.
31
Closing stock
Value
(Qty.)
8.10
251.91
(1.84)
(58.17)
UTJTJTJTJTJTJarLn-TLr'
3)
c)
2006-07
Q t y (M.T.)
2,181.30
4,205.80
163.77
Raw Rubber
EVA
Synthetic Rubber
Others
Total
2005-06
Value
2,157.15
3,625.81
163.94
2,747.55
Q t y (M.T.)
Value
1,671.98
1,71 1.02
269.18
2,023.54
2,330.93
2,1 18.75
291.83
8,694.45
5,675.72
%
32.72
67.28
2006-07
Value
2,844.86
5,849.59
8,694.45
2005-06
%
18.12
81.88
Value
1,028.94
4,646.78
5,675.72
e) E x p e n d i t u r e in Foreign C u r r e n c y :
Particulars
i C I F v a l u e o f Imports m a d e b y t h e C o m p a n y - C a p i t a l G o o d s
- R a w Material
ii Travelling Expenses
iii O t h e r s
f)
9.
2006-07
2005-06
514.23
2,308.64
5.51
1.66
237.66
737.33
1.26
1.75
26.52
Nil
10. Provision for I n c o m e Tax includes W e a l t h Tax provision of Rs. 3.10 lacs (previous y e a r Rs. 2.60 lacs).
1 1 . T h e C o m p a n y o p e r a t e s i n a single business s e g m e n t i.e., p r o d u c t i o n a n d t r a d i n g o f f o o t w e a r s . A c c o r d i n g l y ,
t h e disclosure r e q u i r e m e n t of A c c o u n t i n g S t a n d a r d A S - 1 7 - S e g m e n t R e p o r t i n g , issued by T h e Institute of
C h a r t e r e d A c c o u n t a n t s of I n d i a , is not a p p l i c a b l e .
1 2 . Related party r e l a t i o n s h i p s / t r a n s a t i o n s w a r r a n t i n g
C h a r t e r e d A c c o u n t a n t s of India are as under.
disclosures
Relationship
Associate Company
Associate Concern
Associate Concern
Associate Concern
Associate Concern
Associate Concern
Associate Company
32
under A S - 1 8
issued
by T h e Institute of
Key m a n a g e m e n t p e r s o n n e l & t h e i r r e l a t i v e s
Key M a n a g e m e n t P e r s o n n e l
Name
Mr. M u k a n d Lai D u a
Mr. Ramesh Kumar Dua
Mr. Nikhil D u a
Mr. G.C.Rastogi
Mr. S.K.Sapra
Mr. V i v e k K u m a r
Relatives
Mrs. Usha Dua
M r s . Lalita Dua
Mr. R i t e s h D u a
Mr. Nitin D u a
Mr. G a u r a v D u a
M i s s S a k s h i Dua
Mr. Rahul Dua
M r s . G a r i m a Dua
M r s . B h a v n a Ritesh Dua
3)
Relation
W h o l e T i m e Director
M a n a g i n g Director
Director
Director
Director
Director
W i f e o f W h o l e T i m e Director
W i f e of M a n a g i n g Director
S o n o f W h o l e T i m e Director
S o n o f W h o l e T i m e Director
S o n of M a n a g i n g Director
Daughter of M a n a g i n g Director
Son of M a n a g i n g Director
W i f e of Director
Daughter-in-law of W h o l e Time Director
D i s c l o s u r e of R e l a t e d party t r a n s a c t i o n s .
Transactions
Sale of goods
Purchase of goods
Purchase of Assets
Sale of Assets
R e n t paid
R e n d e r i n g o f s e r v i c e (job w o r k )
Receiving of service
G u a r a n t e e s & collaterals given
D i v i d e n d paid t o s h a r e h o l d e r
P a y m e n t of s a l a r y / p e r q u i s i t e s
Commission
Sitting fees
Loans (Year end balance)
Interest on unsecured loan
Misc. expenses
Legal & professional charges
A m o u n t due to/from
related parties
Debit balance o u t s t a n d i n g
as on 31st M a r c h , 2007
Outstanding receivable
Credit balance o u t s t a n d i n g
as on 31st M a r c h , 2007
Outstanding payable
Associates
2006-07
Key
Management
personnel
& relatives
Total
Associates
298.93
178.74
4,278.60
94.71
5,920.00
67.94
67.20
60.79
0.23
2044.41
154.98,
0.60
1.82
3,342.34
96.19
3.48
262.08
38.58
0.03
5,920.00
68.92
67.20
60.79
0.23
2044.41
154.98
0.88
1.82
11.30
11.30
336.07
336.07
298.93
3,342.34
96.19
3.48
112.97
38.58
0.03
-
0.98
0.28
149.11
33
98.36
30.94
0.98
2005-06
Key
Management
personnel
& relatives
0.01
8.50
143.67
3,890.00
67.94
67.20
Total
178.75
4,278.60
103.21
242.03
30.94
3,890.00
68.92
67.20
0.37
1720.86
107.21
1.61
1.98
0.37
1720.86
107.21
1.61
1.98
213.82
213.82
568.58
568.58
14.
a g r e e m e n t c o v e r u n d e r A S - 1 9 - A c c o u n t for L e a s e issued b y
Chartered A c c o u n t a n t of India.
E a r n i n g per s h a r e ( E P S ) c o m p u t e d i n a c c o r d a n c e w i t h A c c o u n t i n g S t a n d a r d - 2 0 i s a s under.
( Rs. in Lacs )
Particulars
Profit after tax
N o . o f s h a r e issued
E a r n i n g per s h a r e - basic 8t d i l u t e d (Rs.)
2006-07
659.56
12001200
5.50
2005-06
325.85
12001200
2.72
(Rs. in Lacs)
As at 31.03.2006
Deferred
Deferred
As at 31.03.2007
Deferred
Deferred
t a x liabilities
tax assets
D i f f e r e n c e b e t w e e n b o o k 8 i tax
depreciation.
t a x liabilities
tax assets
938.24
854.13
49.56
50.18
50.18
938.24
888.06
49.56
854.13
804.57
83.49
Particulars
Statutory Audit fees
Tax A u d i t
M a n a g e m e n t Consultancy & other
21.68
2006-07
4.14
0.64
4.26
2005-06
3.64
9.04
7.95
services
Total
0.56
3.75
form
have
an i n t e g r a l
been
part
recast /
of
regrouped,
wherever
necessary,
conform
to
Current Year
RAMESH
K U M A R DUA
As per our r e p o r t of e v e n d a t e
FOR GUPTA 8c J H U N J H U N W A L A
Chartered Accountants
CA. M U K E S H DUA
Partner
M.NO.85323
Place : Delhi
Dated : M a y 26, 2007
Managing
SUSHIL BATRA
Chief F i n a n c i a l Officer
34
Director
SANDEEP CHANDNA
M U K A N D LAL DUA
Company Secretary
W h o l e T i m e Director
R e g i s t r a t i o n Details
State C o d e
Registration
55
Day 3 1
M o n t h 03
19097
Year 2007
( A m o u n t in
III.
No.
Rs.Thousands)
Public issue
NIL
Right Issue
NIL
Bonus Issue
NIL
Private Placement
NIL
Position of Mobilisation
and
D e v e l o p m e n t of Funds
Total Liabilities
Total Assets
1203008
1203008
Sources of Funds
Paid-up Capital
60006
Secured Loans
324733
IV.
453138
276325
88806
of Funds
935236
267158
Performance
of
Extra-ordinary
Investments
614
Company
2359348
Total
Items
Expenditure
65956
Dividend Rate
V.
2247093
112255
5.50
15%
Products
of the C o m p a n y
64022001
Product Description
Rubber!
Item C o d e No.
64022009
Product Description
EVA
Accountants
CA. M U K E S H DUA
Partner
M.N0.85323
R A M E S H K U M A R DUA
M a n a g i n g Director
Place
Delhi
SUSHIL BATRA
SANDEEP CHANDNA
M U K A N D LAL D U A
Dated
C o m p a n y Secretary
W h o l e Time Director
35
fASHLONA'B.LE & i
I T P