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Size: 6-10
SS-202
Size: 6-10
SS-203L
Size: 2-4, 5-7
RELAXO
FOOTWEARS
R e g d . Office : 316-319, Allied
LIMITED
H o u s e , Plot No. 2,
Inderlok C h o w k , Delhi - 110035
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
Monday, 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
*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.
M e m b e r s / P r o x y holders are requested to bring their copies of the A n n u a l Report w i t h t h e m to 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 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.
.being a M e m b e r / M e m b e r s of or failing him/her

of
.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
Annual General Meeting of the
day of September, 2007 and at any A d j o u r n m e n t thereof.
Affix
Re.
S i g n e d this
day of September, 2007
SIGNED.
1.00
Revenue
Stamp
Note :
T h i s Proxy t o b e v a l i d s h o u l d b e d e p o s i t e d a t t h e R e g i s t e r e d o f f i c e o f t h e c o m p a n y not less t h a n 4 8 h o u r s
before t h e t i m e for holding t h e m e e t i n g
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
5. To consider, and if thought fit, to

Ordinary Resolution:
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.
Period: Three years commencingfrom lstjanuary,2008.

Remuneration:
S a l a r y (in t h e pay scale of 73.000-10.500-94.000)
Basic Salary
HRA
Medical Reimbursement
Bonus
Amount (in Rs.)

73,000/43,800/6,083/6,083/-
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
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
7920
5500

5500
and such other allowances .perquisites,benefits and amenities as applicable to the Company's Executives in the similar grade after
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
Section 314( IB) of the CompaniesAct, 1956,is necessary.
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
Quality. Ra <: Excellence.
NOTICE
4.
Reimbursement of entertainment, traveling and

Company shall be made.
5.
Memorandum of Concern or interest:
all
other expenses
incurred
by him for the
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.
" 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
substitution thereof, approval of the Company be and is hereby accorded to the appointment of Mr. Gaurav Dua (relative of Mr.
(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
9.
" 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
substitution thereof, approval of the Company be and is hereby accorded to the appointment of Mr. Nitin Dua (relative of Mr.
(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
By order of the Board of Directors

For R E L A X O F O O T W E A R S L I M I T E D
P l a c e : Delhi
D a t e : J u l y 31,2007
(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
An explanatory Statement as required under the provisions of Section

annexed to this notice.
A m o u n t of
Dividend
(Rs.)
30,185
34,881
59,291
52,228
330
1,315
19,772
173(2) of the Companies Act,
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
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
(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
Section 314(1 B) of the Companies Act, 1956, is necessary.
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
R e g d . Office : 316-319, Allied
LIMITED
H o u s e , Plot No. 2,
Inderlok C h o w k , Delhi - 110035
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
day of September, 2007
day of September, 2007 a n d at any A d j o u r n m e n t thereof.
SIGNED.
Affix
Re. 1.00
Revenue
Stamp
Note :
This Proxy t o b e v a l i d s h o u l d b e d e p o s i t e d a t t h e R e g i s t e r e d office o f t h e c o m p a n y n o t less t h a n 4 8 h o u r s
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
Old Rohtak R o a d , Delhi - 110035
Balance Sheet
19
WORKS
Profit
&
Loss A c c o u n t
20
Cash
Flow Statement
21
P l o t No.326 & 327,

Bahadurgarh,
MIE,
Haryana
A - 1 1 3 0 & 1130 (A)

RIICO
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 &
Balance Sheet Abstract
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
of Directors of your C o m p a n y take
pleasure
in presenting their report on the w o r k i n g
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
are eligible for re-
letter f r o m t h e m stating t h a t their r e - a p p o i n t m e n t
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
T h e o b s e r v a t i o n s o f t h e A u d i t o r s o n t h e A c c o u n t s for t h e y e a r u n d e r report h a v e b e e n suitably

e x p l a i n e d in t h e N o t e s to A c c o u n t s a n d do not require any further clarification.
5.
DIRECTORS
Mr. S.
offers
Mr.
K.
S a p r a retires by rotation at t h e e n s u i n g A n n u a l G e n e r a l M e e t i n g a n d b e i n g eligible,
himself for
Vivek
Directors
reappointment.
Kumar was
held
on
30th
appointed
January,
as
an
2007.
Additional
He
holds
Director at the
office
ensuing A n n u a l G e n e r a l M e e t i n g . The C o m p a n y has received

member proposing
meeting
of directorship
hisappointmentasa
Board
of
of the
notice under section 257 from a
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
upto the date
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
N o n e of t h e Directors e x c e p t Mr. V i v e k K u m a r himself is c o n c e r n e d or i n t e r e s t e d in t h e p a s s i n g of

the
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
That the applicable Accounting

Annual
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;
That they have selected such accounting
policies and
of the state of affairs of the C o m p a n y at the end

Companyfortheyear
That
58A of the
1956, your Directors state as under:
j u d g m e n t s and estimates that are reasonable and
3.
under section
RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act,

1.
Deposits
1956 during the year under review.
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
applied t h e m consistently and
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.
That they have prepared t h e A n n u a l A c c o u n t s on a going concern basis.
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)
of e n e r g y are not a p p l i c a b l e to our C o m p a n y .
TECHNOLOGYABSORPTION
I
a)
Research and Development

Specific areas
in which
-Import substitution
-Product/Process
-Waste
R & D carried
of various
out
components
by the Company:
and
development.
recycling.
- R a w material & Chemical substitution.
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)
Technology absorption, adaptation & innovation
Efforts
madetowards technology absorption,
- 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 .
B e n e f i t s d e r i v e d as a result of the a b o v e efforts:

- Better market acceptance.
- I m p r o v e m e n t in q u a l i t y .
- R e d u c t i o n in p r o c e s s cycle t i m e .
- R e d u c t i o n in w a s t a g e & p r o c e s s losses.
- R e d u c t i o n in overall cost of p r o d u c t i o n
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
FOREIGN EXCHANGE EARNINGS AND OUTGO

a)
Activities relating to export initiatives t a k e n to i n c r e a s e e x p o r t s , d e v e l o p m e n t of n e w export for

products and exports plans: T h e C o m p a n y has s t a r t e d e x p o r t b y d e v e l o p i n g n e w m a r k e t .
b)
10.
Total Foreign C u r r e n c y used and e a r n e d

Used
Rs. 2 8 3 0 . 0 4 Lacs
Earned
Rs.
HUMAN
The
26.52 Lacs
RESOURCES M A N A G E M E N T & INDUSTRIAL RELATIONS
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
m e a s u r e s for s a f e g u a r d i n g the safety and
health
of employees and
labourers w e r e
installed at t h e plants of t h e C o m p a n y . T h e C o m p a n y has also installed fire f i g h t i n g e q u i p m e n t

a t all
manufacturing
plants and workers/staff are trained to handle these e q u i p m e n t effectively
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
Y o u r C o m p a n y h a s b e e n c e r t i f i e d for I S O 9 0 0 1 : 2 0 0 0 b y British S t a n d a r d s I n s t i t u t e (B.S.I.). T h i s
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.
P A R T I C U L A R S OF E M P L O Y E E S IN T E R M S OF S E C T I O N 217(2A) OF THE C O M P A N I E S ACT. 1956.
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.
R e m u n e r a t i o n to W h o l e Time Director and
3.
Mr.
Sections
198,
Mukand
Managing
4.
14.
includes salary and taxable perquisites.
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
help and w i s h that the s a m e c o n t i n u e s
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,
"honesty, transparency and
practices are a i m e d at efficient c o n d u c t of business and

towards
its
stakeholders through
an
effective
and
ethical
in
sincerely a n d effectively meeting
professional
dissemination of information through timely disclosures and
behaviour". The Company's

Board
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
I t has o n e M a n a g i n g Director, o n e W h o l e T i m e Director a n d four N o n - E x e c u t i v e Directors. T h e
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
Mr. Nikhil Dua
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
No. of Directors present
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
Mr. G.C. Rastogi
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
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
Overseeing the correctness and
R e v i e w i n g periodic financial results a n d s t a t e m e n t s before they are s u b m i t t e d to t h e B o a r d .
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
1956 and t h e guidelines
function
and
of
including
process.
reviewing
the
efficacy
of the
functions.
Discussion and
Discussion
with
review of periodic A u d i t Reports.

external
Auditors
about
the
scope
audit
the
observations
of
the
auditors.
R e v i e w i n g t h e C o m p a n y ' s F i n a n c i a l a n d Risk M a n a g e m e n t policies.
The Audit Committee is e m p o w e r e d ,
pursuant to the term of reference, to:
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
w i t h relevant experience and expertise, w h i c h is considered necessary.

M i n u t e s of meetings of t h e Audit C o m m i t t e e are circulated to m e m b e r s of t h e C o m m i t t e e and t h e Board of
D i r e c t o r s a p p r o v e s t h e s a m e a t t h e i r next m e e t i n g .
COMPOSITION
AND ATTENDANCE
The following tables summarise the composition and attendance at the meetings of the Audit Committee
Category
Capacity
Name of Director-member
Chairman
Independent Non-executive Director
Mr. S.K. Sapra
Member
Independent Non-executive Director
Mr. Nikhil D u a
Member
Promoter Non-executive Director
Mr. G. C. R a s t o g i
Mr. Nikhil Dua
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
M e m b e r s of t h e Audit C o m m i t t e e have requisite financial and
m a n a g e m e n t expertise and C o m p a n y Secretary
acts as the Secretary to the C o m m i t t e e .

Notes on Directors retiring/being a p p o i n t e d / r e - a p p o i n t e d
Prof. V i v e k K u m a r i s a n E l e c t r i c a l E n g i n e e r f r o m t h e U n i v e r s i t y o f R o o r k e e ( n o w N T R o o r k e e ) a n d a n M B A f r o m
Faculty of M a n a g e m e n t S t u d i e s , Delhi University.
He has 16 y e a r s of C o r p o r a t e e x p e r i e n c e in India's leading
business houses w h e r e he has been o p e r a t i o n a l h e a d besides setting up a n u m b e r of electrical a p p l i a n c e plants.
Lnj-uTjTJTjaruT-rLTLr
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.
Presently he is a Senior Professor
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.
He is well k n o w n in t h e a p p l i a n c e industry and a c a d e m i c circles.
A t p r e s e n t Prof. V i v e k K u m a r i s o n t h e b o a r d o f S a g a r Quality M a n a g e m e n t S e r v i c e s P r i v a t e Limited b e s i d e s

being a Director on the Board of the C o m p a n y .
Mr. S . K . S a p r a i s a F.C.A. w i t h o v e r 4 0 y e a r s o f e x p e r i e n c e a s C h a r t e r e d A c c o u n t a n t o f r e p u t e .
SHAREHOLDERS'/INVESTORS' GRIEVANCE AND
SHARE T R A N S F E R C O M M I T T E E
COMPOSITION AND ATTENDANCE

During t h e financial y e a r 2 0 0 6 - 0 7 , t h r e e m e e t i n g s o f t h e C o m m i t t e e w e r e held a n d t h e a t t e n d a n c e o f m e m b e r s
at the meeting w a s as follows:
Name of the Member
No. of Meetings attended
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
03
03
All c o m p l a i n t s , s u g g e s t i o n s a n d g r i e v a n c e s are promptly dealt w i t h a n d resolved w i t h i n 1 5 d a y s unless t h e r e is

a d i s p u t e a n d / o r o t h e r legal c o n s t r a i n t .
Complaints/queries generally related to,
shares
&
transfer
of
shares,
etc.
inter-alia,
were
documents/information to the shareholders

The Committee supervises the
duly
non-receipt of dividend,
attended
and
the
copies of A n n u a l
Company
has
Report,
furnished
split
necessary
promptly.
m e c h a n i s m for redressal of investor g r i e v a n c e s a n d ensures cordial investor
r e l a t i o n s a p a r t f r o m l o o k i n g i n t o r e d r e s s a l o f s h a r e h o l d e r s ' a n d i n v e s t o r s ' c o m p l a i n t s like t r a n s f e r o f s h a r e s ,

non
receipt of A n n u a l
following
Reports,
non
receipt of dividend
and
allied
matters. The Committee
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 .
Split-up/sub-division a n d consolidation of shares.
Issue of n e w a n d d u p l i c a t e s h a r e certificates.
Registration of P o w e r of A t t o r n e y s , P r o b a t e s , Letters of transmission or other d o c u m e n t s .
performs the
functions:
To o p e n / c l o s e b a n k a c c o u n t ( s ) of t h e C o m p a n y for r e m i t t a n c e of d i v i d e n d a n d issue instructions to b a n k

f r o m t i m e to t i m e in this regard.
To look into t h e redressal of s h a r e h o l d e r s ' c o m p l a i n t s a n d e n q u i r i e s .
A n y a l l i e d matters out of and incidental to t h e s e f u n c t i o n s .
N o r e q u e s t s for s h a r e t r a n s f e r s are p e n d i n g e x c e p t t h o s e t h a t are d i s p u t e d o r s u b - j u d i c e .
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 .
Track record, potential, personal attitude & p e r f o r m a n c e of i n d i v i d u a l ' m a n a g e r and external c o m p e t i t i v e

environment.
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 i n line w i t h t h e I n d u s t r y ' s p r a c t i c e . T h e r e m u n e r a t i o n policy i s

decided by the R e m u n e r a t i o n C o m m i t t e e comprising of Independent Directors.
1.
R e m u n e r a t i o n of E x e c u t i v e D i r e c t o r s - The M a n a g i n g Director and t h e W h o l e T i m e Director are paid

r e m u n e r a t i o n a s per t h e t e r m s a p p r o v e d b y t h e B o a r d o f Directors o f t h e C o m p a n y a n d c o n f i r m e d b y t h e
shareholders of the c o m p a n y and subject to such other statutory approvals as may be necessary.
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
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
Dua, W h o l e Time Director of the
C o m p a n y has b e e n a p p o i n t e d w i t h effect f r o m 0 1 . 0 4 . 0 4 for a period of five y e a r s . T h e n o t i c e period in

both cases is 3 m o n t h s , h o w e v e r b o t h a r e not e n t i t l e d for any kind of s e v e r a n c e f e e s f r o m t h e C o m p a n y .
2.
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
Directors for Financial Y e a r 2 0 0 6 - 2 0 0 7 is as f o l l o w s :

Name of the Directors
Sitting fees
(Rs.)
14,000.00
Mr. S.K. Sapra
9,000.00
ANNUAL GENERAL MEETINGS

D e t a i l s o f last t h r e e A n n u a l G e n e r a l m e e t i n g s a r e :
Particulars
Day
Date
Time
Venue
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,
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 ,
N e w Delhi - 1 1 0 0 0 3
LTLTLTiri/\rLnj"u~LrLr'
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)
Details of n o n - c o m p l i a n c e by the C o m p a n y , penalties, strictures i m p o s e d on t h e C o m p a n y by S t o c k

E x c h a n g e s o r SEBI o r a n y s t a t u t o r y a u t h o r i t y , o n a n y m a t t e r r e l a t e d t o c a p i t a l m a r k e t s d u r i n g t h e last t h r e e
y e a r s : D u r i n g t h e last t h r e e y e a r s , n o p e n a l t i e s o r s t r i c t u r e s h a v e b e e n i m p o s e d o n t h e C o m p a n y b y t h e
Stock Exchanges o r S E B I o r a n y other statutory authorities on matters related to capital markets.
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.
W e b s i t e s w h e r e quarterly results are d i s p l a y e d :
www.relaxofootwear.com
W h e t h e r it also displays official n e w s releases:
No
Any presentations made to the

Investors or to the Analysts:
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
Annual General meeting

Date and TimeVenue-
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.
Financial Calendar (Tentative):

M e e t i n g of t h e B o a r d / C o m m i t t e e of Directors to consider financial results.
End-July, 2007
For t h e q u a r t e r e n d i n g J u n e 3 0 , 2 0 0 7
-
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
S e p t e m b e r , 2007 ( B o t h days inclusive)
10
Dividend
3rd
P a y m e n t Date
w e e k of October 2007
(Tentative)
Registered
316-319, Allied House
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
Phiroze J e e J e e Bhoy Towers,

Dalai Street, M u m b a i - 400 001
7.
Stock Code
530517
Bombay Stock Exchange

8.
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.
monthly price m o v e m e n t during the financial year 2006-07.
06
06
Registrars and Transfer A g e n t s
Karvy C o m p u t e r s h a r e Pvt. Ltd.

U n i t : Relaxo F o o t w e a r s Limited
46, A v e n u e 4 , Street N o . 1 ,
B a n j a r a Hills, H y d e r a b a d - 5 0 0 0 3 4
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
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
equity shares 27.47 Lacs equity shares
representing
2 2 . 8 9 % of the total paid up equity capital have been d e m a t e r i a l i s e d .

T h e t r a n s f e r c u m d e m a t f a c i l i t y i s a v a i l a b l e t o all s h a r e h o l d e r s o f t h e C o m p a n y w h o
facility.
On
completion
of the process of registration
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
C o m p a n y c o m p l e t e s the d e m a t e r i a l i s a t i o n of shares after transfer in t h e n a m e of s h a r e h o l d e r s .

13.
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
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
before t h e d u e d a t e ( as i n d i c a t e d in t h e notes to t h e notice) for crediting t h e s a m e by t h e c o m p a n y to

the Investor Education and Protection F u n d .
During t h e y e a r under review t h e C o m p a n y has credited a s u m of Rs.34,770 to t h e Investor E d u c a t i o n
and Protection Fund pursuant to Section 205Cof the
C o m p a n i e s Act, 1956 and t h e Investor E d u c a t i o n
and Protection Fund ( A w a r e n e s s and Protection of Investor) Rules, 2001
in respect of unpaid dividend
of year ending on 31.03.1999.

16. O t h e r u s e f u l i n f o r m a t i o n f o r s h a r e h o l d e r s :
16.1
M e m b e r s are a d v i s e d t h a t d i v i d e n d s for t h e f i n a n c i a l y e a r e n d e d 31st M a r c h ,
2000 o n w a r d s
w h i c h remain u n p a i d / u n c l a i m e d over a period of 7 years have to be transferred by t h e C o m p a n y

to Investor Education & Protection Fund (IEPF) constituted by the Central G o v e r n m e n t under
S e c t i o n 2 0 5 A & 2 0 5 C o f t h e C o m p a n i e s A c t , 1956 (the A c t ) .
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
d i v i d e n d for this period are requested to lodge their claim w i t h t h e C o m p a n y ,

a m e n d e d provisions of Section 205B of the Act,
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
Equity shares of t h e C o m p a n y are under c o m p u l s o r y d e m a t trading w.e.f.

Considering
the
advantages
of scripless
trading,
shareholders
are
31st M a y ,
requested
to
2001,
consider
dematerialistion of their shareholding so as to avoid inconvenience in future.

16.3
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 .
T h e c o m p a n y will not e n t e r t a i n requests for c h a n g e o f s u c h b a n k
details printed on their dividend w a r r a n t s .

16.5
M e m b e r s holding s h a r e s in physical f o r m are r e q u e s t e d to notify to t h e C o m p a n y , c h a n g e in their

address/Pin Code number and Bank a c c o u n t details promptly.
16.6
Beneficial o w n e r s of shares in d e m a t f o r m are requested to send their instructions regarding

c h a n g e of a d d r e s s , bank details, n o m i n a t i o n , p o w e r of a t t o r n e y etc. directly to their DP as t h e
sameare maintained by t h e m .
13
LTLnJTJTJTJTJTJTXLTLr'
16.7
Section
109A of t h e C o m p a n i e s act,
shares in physical form in c o m p a n i e s .

name,
1956 extends
n o m i n a t i o n facility to
individuals
holding
M e m b e r s , in particular those holding shares in single
may avail of t h e a b o v e facility by furnishing t h e particulars of their n o m i n a t i o n
in the
prescribed Nomination Form.
Auditors' Certificate on Corporate Governance

TO THE M E M B E R S OF
RE LAX O F O O T W E A R S LIMITED
We have examined
the compliance of conditions of Corporate Governance by R E L A X O F O O T W E A R S
LTD., for t h e y e a r e n d e d o n 3 1 s t M a r c h , 2 0 0 7 , a s s t i p u l a t e d i n C l a u s e 4 9 o f t h e Listing A g r e e m e n t o f

t h e said C o m p a n y w i t h t h e Stock E x c h a n g e s in India.
The c o m p l i a n c e of the conditions of C o r p o r a t e G o v e r n a n c e is the responsibility of the M a n a g e m e n t .
Our examination
w a s limited t o p r o c e d u r e s a n d i m p l e m e n t a t i o n thereof, a d o p t e d b y the C o m p a n y
for ensuring t h e c o m p l i a n c e of t h e conditions of the C o r p o r a t e G o v e r n a n c e .
It is neither an a u d i t nor
an expression of opinion on the financial statements of the C o m p a n y .

In our o p i n i o n a n d to t h e best of our i n f o r m a t i o n a n d a c c o r d i n g to t h e e x p l a n a t i o n s g i v e n to us, we
certify t h a t t h e C o m p a n y has c o m p l i e d w i t h t h e c o n d i t i o n s o f C o r p o r a t e G o v e r n a n c e a s s t i p u l a t e d i n
the above mentioned
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
regarding the composition
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
From the Fourth
Quarter o n w a r d s , the composition of the Board of Directors is in a c c o r d a n c e w i t h the provisions of

c l a u s e 4 9 o f t h e Listing A g r e e m e n t .
We state that no investor g r i e v a n c e is p e n d i n g for a period e x c e e d i n g o n e m o n t h against t h e C o m p a n y
a s per t h e r e c o r d s m a i n t a i n e d b y S h a r e h o l d e r s ' G r i e v a n c e C o m m i t t e e .
We further state that such c o m p l i a n c e is neither an assurance as to
future viability of the C o m p a n y
nor t h e efficiency o r t h e e f f e c t i v e n e s s w i t h w h i c h t h e M a n a g e m e n t has c o n d u c t e d t h e affairs o f t h e

Company.
FOR GUPTA & J H U N J H U N W A L A
Place:
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)
O n t h e basis o f t h e w r i t t e n r e p r e s e n t a t i o n s r e c e i v e d f r o m t h e Directors a s o n 31st M a r c h , 2 0 0 7 a n d t a k e n o n

record b y t h e B o a r d o f D i r e c t o r s , w e r e p o r t t h a t n o n e o f t h e D i r e c t o r s i s d i s q u a l i f i e d a s o n 31st M a r c h , 2 0 0 7 f r o m
b e i n g a p p o i n t e d as a Director in t e r m s of c l a u s e (g) of s u b - s e c t i o n (I) of S e c t i o n 2 7 4 of t h e C o m p a n i e s A c t , 1 9 5 6 .
(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)
I n s o far a s i t relates t o t h e B a l a n c e S h e e t , o f t h e s t a t e o f affairs o f t h e C o m p a n y a s a t 3 1 s t M a r c h , 2 0 0 7 ;
(ii)
I n s o far a s i t relates t o t h e Profit a n d Loss A c c o u n t o f t h e profit o f t h e C o m p a n y for t h e y e a r e n d e d o n t h a t

date; and
(iii) I n s o far a s i t relates t o t h e C a s h F l o w S t a t e m e n t o f t h e c a s h f l o w o f t h e C o m p a n y for t h e y e a r e n d e d o n t h a t

date.
For GUPTA & J H U N J H U N W A L A

Place
D
Delhi
CA. MUKESH DUA
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,
(REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE)

1.
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.
In respect of loans, secured or u n s e c u r e d , granted or taken by t h e C o m p a n y , t o / f r o m C o m p a n i e s , firms or other

parties 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 3 0 1 o f t h e C o m p a n i e s A c t , 1 9 5 6 :
(a) T h e C o m p a n y has t a k e n u n s e c u r e d l o a n s a g g r e g a t i n g t o R s . 3 8 4 . 5 6 lacs d u r i n g t h e y e a r f r o m o n e party
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 3 0 1 o f t h e C o m p a n i e s A c t , 1 9 5 6 .
(b) I n our 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 g i v e n t o u s , t h e rate o f i n t e r e s t a n d o t h e r
t e r m s a n d c o n d i t i o n s a r e not p r i m a f a c i e p r e j u d i c i a l t o t h e interest o f t h e C o m p a n y .
(c) T h e C o m p a n y has not g r a n t e d a n y l o a n , t o a c o m p a n y , f i r m o r o t h e r p a r t i e s c o v e r e d i n t h e register
maintained under section 301 of t h e C o m p a n i e s A c t , 1956.
(d) T h e C o m p a n y i s r e g u l a r i n p a y i n g t h e principal a m o u n t s a s s t i p u l a t e d a n d h a v e b e e n r e g u l a r i n p a y m e n t o f
interest in r e s p e c t of loans r e f e r e e d to in (a) a b o v e .
(e)
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.
I n our 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 us, t h e C o m p a n y has not a c c e p t e d
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)
Excise & Taxation C o m m i s s i o n e r

Excise & T a x a t i o n C o m m i s s i o n e r
19.89
14.24
Haryana Local Area

Dev. Tax A c t , 2 0 0 0
L A D A Tax 2 0 0 6 - 0 7
High Court, Chandigarh
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.
T h e C o m p a n y has n o a c c u m u l a t e d losses a t t h e e n d o f f i n a n c i a l y e a r a n d has not i n c u r r e d a n y c a s h losses d u r i n g

the financial year covered by our audit and in the immediately preceding financial year.
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.
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 Company has not g r a n t e d a n y l o a n s a n d

a d v a n c e s o n t h e basis o f security b y w a y o f p l e d g e o f s h a r e s , d e b e n t u r e s a n d o t h e r s s e c u r i t i e s .
13.
In o u r o p i n i o n , t h e C o m p a n y is not a chit f u n d or a nidhi / m u t u a l b e n e f i t f u n d / society. T h e r e f o r e , c l a u s e 4 (xiii)

o f 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 ) i s n o t a p p l i c a b l e t o t h e C o m p a n y .
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.
I n o u r o p i n i o n t h e t e r m loan has b e e n utilised f o r t h e p u r p o s e s f o r w h i c h t h e s a m e w a s r a i s e d .
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.
T h e C o m p a n y has not issued d e b e n t u r e s a n d t h e r e f o r e , t h e q u e s t i o n o f s e c u r i t i e s o r c h a r g e t o b e c r e a t e d i n

r e s p e c t o f d e b e n t u r e s d o e s not a r i s e .
20.
T h e C o m p a n y h a s not raised a n y m o n e y b y w a y o f p u b l i c issue d u r i n g t h e y e a r .
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
CA.
P l a c e : Delhi
M U K E S H DUA
Partner
M .
Dated: May26,2007
18
Balance Sheet as at 31 st March, 2007

(Rs. in Lacs)
A s 3t
Particulars
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
Reserves & Surplus
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
Policies & Notes on A c c o u n t s
2671.58
2106.50
12030.08
9713.90
XIII
As per our report of even date

C A . M U K E S H DUA
Partner
M.NO. 85323
Place
Dated :
Delhi
M a y 26, 2007
RAMESH
K U M A R DUA
S U S H I L BATRA
SANDEEP CHANDNA
M U K A N D LAL DUA
Chief Financial Officer
C o m p a n y Secretary
19
LnjTJTJTJTJTJTJTJ-TJ-LT
Profit and Loss Account for the

year ended 31st M a r c h , 2007
(Rs. in Lacs)
Particulars
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
A d m i n i s t r a t i v e , S e l l i n g & Other Expenses
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
Basic & Diluted E a r n i n g Per S h a r e (Rs.)

( S e e N o t e N o . 14)
A c c o u n t i n g Policies & N o t e s on A c c o u n t s
XIII
As per our report of e v e n d a t e

CA. M U K E S H DUA
Partner
M.NO. 85323
RAMESH
Managing
K U M A R DUA
Director
Place :
Delhi
SUSHIL BATRA
SANDEEP CHANDNA
M U K A N D LAL DUA
Dated :
May 26, 2007
Company
20
Secretary
Cash Flow Statement for the

year ended 31st M a r c h , 2007
( R s . in Lacs)
S.No.
Particulars
2006-07
2005-06
CASH FLOW F R O M OPERATIVE ACTIVITIES :

PROFIT B E F O R E TAX A N D E X T R A - O R D I N A R Y I T E M S
ADJUSTMENTS
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)
(Profit)/Loss on sale of Assets
(0.87)
4.52
O p e r a t i n g Profit before w o r k i n g capital c h a n g e s

ADJUSTMENTS
733.32
1951.09
2882.78
FOR
Trade and Other receivables
260.47
322.20
Inventories
(711.55)
745.19
Other Current Assets
(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))
Proceeds f r o m long t e r m borrowings ( Net of repayments)
1697.91
(614.49)
Dividend Paid
(102.63)
(102.63)
Financial Expenses
(951.82)
(728.41)
Net Cash f r o m Financing activities
(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
Net increase in cash & cash e q u i v a l e n t s
118.46
(177.67)
Cash & cash equivalents at the -beginning of the year
238.93
416.60
Cash & cash e q u i v a l e n t s at t h e -end of t h e year
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
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
UTJTJTJTJTJTJTJ-LTLrLr'
Schedules Forming Part of Accounts
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
Reserve & Share Premium A/c)

600.06
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
A d d : T r a n s f e r f r o m Profit & Loss A / c
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)
PROFIT & LOSS A C C O U N T

A m o u n t transferred
f r o m Profit & Loss A c c o u n t
Less : D o n a t i o n
Total ( D)
T o t a l (A + B + C + D)
22
@msss^ feu &3i)fi

UTJTJTJTJTJTJT-TLTLar
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
Interest A c c r u e d a n d Due on Loan
(II) W O R K I N G CAPITAL LOAN

Total
(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
Security Deposits f r o m Distributors
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)
Term Loan includes repayable w i t h i n o n e year.
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
by w a y of collateral security of equitable m o r t g a g e of c o m m e r c i a l ,
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
Director. T h e s e loans are also s e c u r e d by p e r s o n a l g u a r a n t e e s of t h r e e Directors including M a n a g i n g Director

and W h o l e T i m e Director and their relatives.
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
PLANT & MACHINERY
MOULDS
COMPUTER
142.27
17.56
MOTOR VEHICLE-OTHERS
190.42
73.91
21.05
MOTOR VEHICLE - TRANSPORT
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'

SCHEDULE - V
( Rs. in Lacs )
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 *
Packing M a t e r i a l & Fuel

T o t a l (I)
II
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
Less: provision for d o u b t f u l d e b t s

Total (II)
III
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
CASH & BANK B A L A N C E S

a) Cash in h a n d
b)Balances with Scheduled Banks
-
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
(Includes M a r g i n M o n e y on Letters of Credit &

Bank Guarantees)
T o t a l (III)
Total A ( I + I I - H I I )
25
360.33
243.91
4113.42
3545.92
UTJTJTJTJTJTJTJ-LTLTLr

( Rs. in Lacs )
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 )
* * * Includes Rs. 8.99 Lacs f r o m a C o m p a n y , in w h i c h Directors 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 . 140.83 Lacs)

S C H E D U L E - VII
CURRENT LIABILITIES A N D P R O V I S I O N S
A.
C U R R E N T LIABILITIES
Sundry
Creditors
Capital goods
52.87
33.23
Small scale industries
64.91
44.94
Others
1,114.40
1,336.94
Advances from Customers
93.46
442.95
322.10
Unclaimed Dividend
1.78
2.13
Book overdraft with scheduled bank
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"

S C H E D U L E - IX
MATERIAL & M A N U F A C T U R I N G
( 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
C o n t r i b u t i o n to Provident & o t h e r Funds

E m p l o y e e s ' W e l f a r e expenses
Total
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
Provision for doubtful debts

Cartage outward
165.51
209.88
Printing & stationery
22.87
21.83
Communication
55.98
52.19
expenses
Security expenses
55.81
52.61
Legal & P r o f e s s i o n a l Expenses
58.56
25.29
Loss on Sale of Assets

Other expenses
Total
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
Accounting Policies and Notes on Accounts

SCHEDULE-XIII
SIGNIFICANT ACCOUNTING
A.
1.
POLICIES AND
NOTES ON A C C O U N T S
SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTING
CONVENTION
The Financial S t a t e m e n t s have been p r epared u n d e r t h e historical cost c o n v e n t i o n

with generally accepted
2.
accounting principles and the provisions of the
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
interest relating to acquisition
less
accumulated
of f i x e d assets till the time of
commissioning of such assets are capitalized. G r a n t s / subsidy received
have been
reduced from
the cost of specific fixed assets.

Incidental
Expenditure during
construction
period
is
included
under Capital
Work-in-Progress
a n d t h e s a m e is a l l o c a t e d to t h e respective fixed assets on c o m p l e t i o n of c o n s t r u c t i o n .

An
impairment
loss i s
recognised,
w h e n e v e r carrying v a l u e of fixed
assets exceeds the
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
Schedule X I V of the C o m p a n i e s Act,
a m o r t i z e d as t h e lease has been g r a n t e d for long

a m o r t i s e d over the period of lease or their useful
amortised
over the
period
of their useful
lives
in
1956.
period.
(SLM)
at the
rates a n d
in the manner
The value of leasehold

Cost of leasehold
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
Intangible Assets are
accordance with the Accounting
Standard
on
Intangible Assets (AS-26) issued by The Institute of Chartered A c c o u n t a n t s of India.
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 :
R a w material cost as increased by e s t i m a t e d p r o d u c t i o n o v e r h e a d s keeping
in account the stage of process.

-
5.
Stores, tools and spare parts
RETIREMENT
are treated as c o n s u m e d during the year of purchase.
BENEFITS
Contributions to
Provident Fund are a c c o u n t e d on actual
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
liability basis. T h e C o m p a n y has t a k e n
respect of Gratuity. The p r e m i u m
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'

d e b i t e d t o profit a n d loss a c c o u n t o n a c t u a l liability basis.
Leave e n c a s h m e n t benefit is charged
to Profit a n d Loss A c c o u n t on t h e basis of actuarial v a l u a t i o n at t h e e n d of financial year.
6.
REVENUE
RECOGNITION
Sales are net of t r a d e d i s c o u n t s and claims.

with the
7.
A c c o u n t i n g S t a n d a r d (AS-9) issued by The Institute of Chartered A c c o u n t a n t s of India.
RESEARCH
Capital
Other items of revenue are recognised in a c c o r d a n c e
& DEVELOPMENT
expenditure
on
Research
and
Development
is
capitalised
under various fixed
assets.
R e v e n u e e x p e n s e s are c h a r g e d to Profit & Loss A c c o u n t , w h e n i n c u r r e d .
8.
PRIOR PERIOD & EXTRA ORDINARY ITEMS

Prior period as w e l l as Extra O r d i n a r y
items having
material impact on the financial affairs of the
C o m p a n y are disclosed separately.
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
book and taxable
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
r e a s o n a b l e certainty that the asset will be realised in future.
10.
a).
FOREIGN
CURRENCYTRANSACTIONS
Transactions in foreign currency are a c c o u n t e d for

of the transaction.
M o n e t a r y current assets and
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
Profit & Loss A c c o u n t .
at the e x c h a n g e rates prevailing on

liabilities a t t h e y e a r e n d
The
difference
transactions
thereon
during
the
and
year
the date
are translated
also
are
the
at the
exchange
recognised
as
N o n - m o n e t a r y items are carried at historical cost.
b o r r o w i n g s relating to fixed assets is a d j u s t e d in t h e carrying a m o u n t of
the respective fixed asset.

b).
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
respective contracts over the tenor thereof.
1 1 . PROVISIONS & CONTINGENT LIABILITIES

Provision involving
substantial d e g r e e of estimation in m e a s u r e m e n t are recognised w h e n there
is a p r e s e n t o b l i g a t i o n as a result of past e v e n t s a n d it is p r o b a b l e t h a t t h e r e will be an o u t f l o w of

resources.
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

B.
1.
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.
B a n k G u a r a n t e e s A g g r e g a t i n g t o R s . 8 . 0 0 lacs g i v e n t o v a r i o u s A u t h o r i t i e s ( P r e v i o u s Y e a r R s . 10.69 lacs).
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
a m o u n t e d to Rs. 67.56 lacs.

v.
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
D e p a r t m e n t has raised a d e m a n d of R s . 2 1 . 0 4 lacs for t h e A s s e s s m e n t Y e a r 2 0 0 1 - 0 2 . T h e C o m p a n y has filed

a n a p p e a l w i t h t h e 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 i s 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 provision has b e e n m a d e .
H o w e v e r the D e p a r t m e n t has adjusted the D e m a n d against refund due to the C o m p a n y .
c)
ESI D e p a r t m e n t has raised d e m a n d of Rs. 10.31
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
d i s p u t e in E S I C o n t r i b u t i o n & Interest. T h e C o m p a n y has filed an a p e a l w i t h t h e A p p e l l a t e A u t h o r i t i e s . T h e

m a t t e r is still P e n d i n g .
2.
S u b s i d y o f R s . 50.00 lacs r e c e i v e d f r o m G o v e r n m e n t for p r o m o t i o n o f F o o t w e a r Industry has b e e n r e d u c e d

f r o m t h e gross v a l u e of fixed assets.
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.
(Expenditure During Construction Period)

Capital W o r k in progress includes the f o l l o w i n g expenditure that t h e c o m p a n y has incurred on project in
Uttaranchal.
(Rs in l a c s )
2006-07
S h o e Project (Haridwar)
21.44
B a n k interest & charges

Security expenses
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

( R s . in Lacs
2006-07
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
read w i t h S e c t i o n 309(5) and S e c t i o n
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
Provision for d o u b t f u l debts
67.20
2.84
Loss on sale of Fixed A s s e t s
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
Balance payable as commission
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
the Finished G o o d s T r a d e d by the C o m p a n y
:
( 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)
Capacities, P r o d u c t i o n , Sales and S t o c k of Manufactured g o o d s :
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'

2)
Installed capacity as certified by the Management.
3)
Figures within brackets pertain to PreviousYear.
c)
Raw material consumed:

Particulars
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
d) V a l u e of Imported and I n d i g e n o u s materials c o n s u m e d and p e r c e n t a g e thereof.

Particulars
Imported
Indigenous
Total
%
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)
Earnings in Foreign E x c h a n g e (FOB v a l u e of Export sale)
9.
Prior period a d j u s t m e n t represents excess/less provision
2006-07
2005-06
514.23
2,308.64
5.51
1.66
237.66
737.33
1.26
1.75
26.52
Nil
for expenses & taxes upto 2 0 0 6 - 0 7 .
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
1) Names and relationship of the Transacting parties.

Name
Relaxo R u b b e r s Private Limited
Relaxo R u b b e r s
G u m b e r Dyeing & Printing W o r k s
Relaxo I n t e r n a t i o n a l
Nu w a v e Shoes
Patel Oil Mills
M a r v e l P o l y m e r s (P) Limited
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

2)
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. Ramesh Kumar Dua
Mr. Nikhil D u a
Mr. G.C.Rastogi
Mr. S.K.Sapra
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
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

13.
T h e C o m p a n y has not e n t e r e d into a n y lease

T h e Institute o f
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
15. T h e principal c o m p o n e n t s of N e t D e f e r r e d Tax liability a r e as f o l l o w s :Particulars
(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
P r o v i s i o n s d e b i t e d to Profit & Loss

Account
Total
N e t d e f e r r e d t a x liability
Net i n c r e m e n t a l liability c h a r g e d t o
Profit & Loss a c c o u n t
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
17. N a m e s o f small scale industrial u n d e r t a k i n g s t o w h o m t h e C o m p a n y o w e s any s u m for m o r e t h a n 3 0

days are as follows:(I) Expo I n t e r n a t i o n a l (II) B a b a S h o e C o m p a n y (P) L t d . (Ill) S h a m s o n P o l y m e r s (P) L t d .
(IV) Z a r a F o o t w e a r (P) L t d .
(V) Tricolite Electrical I n d u s t r i e s (VI) S h a r m a B r o t h e r s (P) L t d .
18. S c h e d u l e I to XIII
dealt accordingly.
19. P r e v i o u s y e a r f i g u r e s
Classification.
form
have
an i n t e g r a l
been
part
recast /
of
B a l a n c e S h e e t a n d Profit & Loss A c c o u n t a n d h a v e b e e n
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
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
Balance Sheet Abstract and Company's

General Business Profile
I.
R e g i s t r a t i o n Details
State C o d e
Balance Sheet Date

II.
Registration
55
Day 3 1
M o n t h 03
19097
Year 2007
( A m o u n t in
Capital Raised During the year
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
Deffered Tax Liability

Application
IV.
453138
276325
88806
of Funds
Net Fixed Assets
935236
Net Current Assets
267158
Performance
of
Extra-ordinary
Investments
614
Company
Turnover including Other I n c o m e
2359348
Total
Items
Expenditure
Profit/Loss Before Tax
Profit/Loss After Tax
65956
Dividend Rate
V.
Reserve & surplus

Unsecured Loans
Earning Per Share(in Rs.)
2247093
112255
5.50
15%
Generic Names Of Principal

Item Code No.
Products
of the C o m p a n y
64022001
Product Description
Rubber!
Item C o d e No.
64022009
Product Description
EVA

Chartered
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
Place
Delhi
SUSHIL BATRA
SANDEEP CHANDNA
M U K A N D LAL D U A
Dated
May 26, 2007
C o m p a n y Secretary
35
fASHLONA'B.LE & i
I T P

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ZOOS - 9003

R e g d . Office : 316-319, Allied

Inderlok C h o w k , Delhi - 110035

Monday, the 24th September,

M e m b e r s / P r o x y holders are requested to bring their copies of the A n n u a l Report w i t h t h e m to t h e m e e t i n g .

.being a M e m b e r / M e m b e r s of or failing him/her

Annual General Meeting of the

day of September, 2007 and at any A d j o u r n m e n t thereof.

day of September, 2007

T h i s Proxy t o b e v a l i d s h o u l d b e d e p o s i t e d a t t h e R e g i s t e r e d o f f i c e o f t h e c o m p a n y not less t h a n 4 8 h o u r s

before t h e t i m e for holding t h e m e e t i n g

5. To consider, and if thought fit, to

Period: Three years commencingfrom lstjanuary,2008.

Amount (in Rs.)

restricted to one month's salary

Quality. Ra <: Excellence.

Reimbursement of entertainment, traveling and

Memorandum of Concern or interest:

by him for the

By order of the Board of Directors

An explanatory Statement as required under the provisions of Section

173(2) of the Companies Act,

R e g d . Office : 316-319, Allied

Inderlok C h o w k , Delhi - 110035

day of September, 2007

day of September, 2007 a n d at any A d j o u r n m e n t thereof.

This Proxy t o b e v a l i d s h o u l d b e d e p o s i t e d a t t h e R e g i s t e r e d office o f t h e c o m p a n y n o t less t h a n 4 8 h o u r s

Old Rohtak R o a d , Delhi - 110035

P l o t No.326 & 327,

A - 1 1 3 0 & 1130 (A)

Balance Sheet Abstract

of Directors of your C o m p a n y take

in presenting their report on the w o r k i n g

are eligible for re-

letter f r o m t h e m stating t h a t their r e - a p p o i n t m e n t

T h e o b s e r v a t i o n s o f t h e A u d i t o r s o n t h e A c c o u n t s for t h e y e a r u n d e r report h a v e b e e n suitably

S a p r a retires by rotation at t h e e n s u i n g A n n u a l G e n e r a l M e e t i n g a n d b e i n g eligible,

ensuing A n n u a l G e n e r a l M e e t i n g . The C o m p a n y has received

notice under section 257 from a

upto the date

N o n e of t h e Directors e x c e p t Mr. V i v e k K u m a r himself is c o n c e r n e d or i n t e r e s t e d in t h e p a s s i n g of

That the applicable Accounting

That they have selected such accounting

of the state of affairs of the C o m p a n y at the end

1956, your Directors state as under:

j u d g m e n t s and estimates that are reasonable and

Pursuant to Section 217(2AA) of the Companies Act,

1956 during the year under review.

applied t h e m consistently and

That they have prepared t h e A n n u a l A c c o u n t s on a going concern basis.

of e n e r g y are not a p p l i c a b l e to our C o m p a n y .

Research and Development

- R a w material & Chemical substitution.

Technology absorption, adaptation & innovation

madetowards technology absorption,

B e n e f i t s d e r i v e d as a result of the a b o v e efforts:

FOREIGN EXCHANGE EARNINGS AND OUTGO

Activities relating to export initiatives t a k e n to i n c r e a s e e x p o r t s , d e v e l o p m e n t of n e w export for

Total Foreign C u r r e n c y used and e a r n e d

RESOURCES M A N A G E M E N T & INDUSTRIAL RELATIONS

m e a s u r e s for s a f e g u a r d i n g the safety and

installed at t h e plants of t h e C o m p a n y . T h e C o m p a n y has also installed fire f i g h t i n g e q u i p m e n t

plants and workers/staff are trained to handle these e q u i p m e n t effectively

Y o u r C o m p a n y h a s b e e n c e r t i f i e d for I S O 9 0 0 1 : 2 0 0 0 b y British S t a n d a r d s I n s t i t u t e (B.S.I.). T h i s