MIRA
INFORM REPORT
|
Report Date : |
23rd
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
RELAXO
FOOTWEARS LIMITED |
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Registered Office : |
316-319, Allied House, Inderlok Chowk, Old Rohtak Road, Delhi 110035 |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
13.09.1984 |
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Com. Reg. No.: |
55-019097 |
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CIN No.: [Company
Identification No.] |
L74899DL1984PLC019097 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELR08034F |
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Legal Form : |
Public
Limited Liability Company. The company’s shares are listed on the Stock
Exchange. |
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Line of Business : |
Manufacturing
of Footwear’s |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
1500000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. Trade relations are
fair. Financial position is satisfactory. Payments are reported as correct
and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
316-319, Allied House, Inderlok Chowk, Old Rohtak Road, Delhi I 10035 |
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Tel. No.: |
91-11-23658354
/ 3658365/3658366 |
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Fax No.: |
91-11-23658773
/ 3658431 |
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Email : |
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Website : |
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Factory
1 : |
Plot No.326 & 327, MIE, Bahadurgarh,
Haryana |
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Factory
2 : |
A-1 130 & 1130 (A) RIICO Industrial Area
Phase-Ill, Bhiwadi, Rajashtan |
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Factory
3 : |
30/3/2, Rakba Mooja Hasanpur, Tikri Border
(Near Sales Tax Office), Bahadurgarh (Haryana) |
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DIRECTORS
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Name : |
Mr. R.K.Dua |
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Designation : |
Managing Director |
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Date of Birth/Age : |
51 Years |
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Qualification : |
B. Com Lpri |
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Experience : |
30 Years |
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Date of Appointment : |
01.04.1994 |
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Name : |
Mr. M.L Dua |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B. Sc |
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Experience : |
33 Years |
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Date of Appointment : |
01.04.1994 |
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Name : |
Mr. Nikhil Dua |
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Designation : |
Director |
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Name : |
Mr. G.C. Rastogi |
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Designation : |
Director |
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Name : |
Mr. S.K. Sapra |
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Designation : |
Director |
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Name : |
Mr. R.K. Gupta |
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Designation : |
Director |
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Name : |
Mr. Rajiv Trehan |
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Designation : |
Company Secretary |
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Name : |
Mr. Sushil Batra |
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Designation : |
General
Manager (Finance & Accounts) |
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BUSINESS DETAILS
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Line of Business : |
Manufacturing
of Footwear’s |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Hawai Slippers |
Pair (in millions) |
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0.250 |
40.097 Qty. |
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GENERAL
INFORMATION
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No. of Employees : |
About
2500 |
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Bankers : |
State Bank Of India Mayapuri, New Delhi - I 10 064 |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
Gupta & Jhunjhunwala Chartered Accountants 9, Darya Ganj, New Delhi -1 10 002 |
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Associates/Subsidiaries : |
v
Relaxo Rubber Limited v
Relaxo Rubbers v
Relaxo International v
Nu wave Shoes v
Patel Oil Mills v Marvel Polymers
Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity
Shares |
Rs. 5/- each |
Rs. 100.000 millions |
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Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
12001200 |
Equity
Shares |
Rs. 5/- each |
Rs. 60.006 millions |
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FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
60.006 |
60.006 |
60.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
373.944 |
345.681 |
301.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
433.950 |
405.687 |
361.100 |
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LOAN FUNDS |
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1] Secured Loans |
390.000 |
46.446 |
45.100 |
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2] Unsecured Loans |
102.715 |
123.382 |
12.100 |
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TOTAL BORROWING |
492.715 |
169.828 |
57.200 |
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DEFERRED TAX LIABILITIES |
78.290 |
60.032 |
0.000 |
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TOTAL |
1004.955 |
635.547 |
418.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
698.029 |
492.137 |
401.900 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.614 |
0.637 |
0.600 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
227.049
|
146.690 |
120.600 |
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Sundry Debtors |
209.891
|
213.024 |
211.200 |
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Cash & Bank Balances |
56.534
|
46.744 |
15.200 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
46.652
|
32.642 |
24.300 |
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Total Current Assets |
540.126
|
439.100 |
371.300 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
213.761
|
283.749 |
343.300 |
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Provisions |
20.053
|
12.578 |
12.200 |
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Total Current Liabilities |
233.814
|
296.327 |
355.500 |
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Net Current Assets |
306.312
|
142.773 |
15.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1004.955 |
635.547 |
418.300 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other
income] |
2167.169 |
2016.476 |
1486.200 |
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Profit/(Loss)
Before Tax |
60.339 |
73.837 |
47.800 |
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Provision
for Taxation |
23.108 |
19.800 |
12.900 |
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Profit/(Loss)
After Tax |
37.231 |
54.037 |
34.900 |
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Import
Value |
289.938 |
128.135 |
NA |
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Total
Expenditure |
2046.207 |
1909.084 |
1369.600 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
|
31.03.2006 |
|
Type |
|
|
Full
Year |
|
Sales Turnover |
|
|
2008.600 |
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Other Income |
|
|
09.700 |
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Total Income |
|
|
2018.300 |
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Total Expenditure |
|
|
1861.500 |
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Operating Profit |
|
|
156.800 |
|
Interest |
|
|
37.700 |
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Gross Profit |
|
|
119.100 |
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Depreciation |
|
|
73.300 |
|
Tax |
|
|
11.000 |
|
Reported PAT |
|
|
32.600 |
|
Dividend (%) |
|
|
150.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
PAT / Total Income |
(%) |
1.57
|
2.68 |
2.35 |
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Net
Profit Margin (PBT/Sales) |
(%) |
2.78
|
3.66 |
3.22 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
4.87
|
7.92 |
6.18 |
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Return
on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.18 |
0.13 |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
1.67
|
1.15 |
1.14 |
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Current
Ratio (Current
Asset/Current Liability) |
|
2.31
|
1.48 |
1.04 |
STOCK PRICES
|
Face
Value |
Rs.5.00/- |
|
High |
Rs.32.50/- |
|
Low |
Rs.29.20/- |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
v Tangible Assets
v Land - Free Hold
-
Lease Hold
v Building
v Plant & Machinery
v Moulds
v Computer
v Air Condition-Plant
v Motor Vehicle-Others
v Motor Vehicle -Tramps
v Furniture & Fixture
v Electricity Fitting
v
Office Equipment
v
Wooden Structure
Relaxo Foot
Wear(RFW), a part of Relaxo Group which has major interest in Footwear
production, was incorporated in Sep 13, 1984 as a private limited company to
market market the products of group concerns such as hawai slippers, light
weight slippers, canvas shoes, PVC footwear etc. It was subsequently converted
into a public limited company on March 31, 1993.
In the year 1995-96 the company has transformed from solely a
Trading/marketing agency to that of a full/fledged manufacturing unit by
putting up a facility to produce 50000 pairs of hawai and light weight chappals
per day on a two shift basis at Bahadurgarh, Haryana. This project was part
financed by RFW's maiden public issue aggregating Rs.45.0 millions at a premieum of Rs.50 per each
share of facevalue of Rs.10.
In the year 1999, the company has expanded the capacity of it's
Bahadurgarh plant. The company has implemented a Hitech Hawai manufacturing
plant at Bhiwadi (Rajasthan), which is the largest Hawai manufacturing plant in
India during the year 1999-2000. The commercial production of this new plant
has commenced in the month of July 2001.
OPERATION
The turnover of the Company for the
year was Rs.2154.721 Millions as against Rs.2007.110 Millions in the previous
year showing an increase of 7.35 % .The profit for the year after provision of
tax is Rs.37.23l millions as compared to previous year's profit after tax of
Rs.54.037 millions. The decrease in profit was on account of depreciation of
new project at Tikri border Bahadurgarh.
DIVIDEND
The Directors' are pleased to
recommend a dividend @ 15 % on the equity shares of the Company for the year
ended 31 "March, 2005.
CORPORATE GOVERNANCE
The Director reaffirm their
commitment to the Corporate Governance Standards prescribed by the Securities
Exchange Board of India. The Board of Directors of the Company has evolved and
adopted a model code of conduct based on the good Corporate Governance and best
management practices being followed globally. This Annual Report carries a
section on Corporate Governance and benchmarks the Company with the SEBI code
on Corporate Governance.The Company's Statutory Auditors' Certificate dated 30th June, 2005 in
line with Clause 49 of the Stock Exchange Listing Agreement, is annexed to and
forms part of the Directors' Report as Annexure A.
As per website
Relaxo
is one of India's most quality conscious and progressive footwear companies.
Headquartered in Delhi, India, it maintains a fine combination of comfort,
style and workmanship and is embarking upon appreciable growth plans for the
future.
Over 30 yrs of experience:
Relaxo stepped into the footwear industry in 1976. It started off with the
manufacture of Hawaii slippers and subsequently diversified into manufacturing
casuals, joggers, school and leather shoes.
Record-breaking growth rate:
Relaxo has experienced a record-breaking growth rate of 4800% within the last
10 years! From a modest sale of around Rs. 1 million in the year 77-78, it has
today crossed the Rs. 2000 million+ figure.
Second largest footwear company in India:
Relaxo has the capacity to manufacture over 100 million pairs, per annum. It is
second only to Bata - a name of international repute in the footwear market.
In
India, Relaxo has a customer base of around 100 million people.
Largest manufacturer of Hawaii slippers:
Relaxo's capacity to manufacture 300,000 pairs of Hawaii slippers per day is
the highest in the footwear industry.
A1 Rating:
The Investment Information and Credit Rating Agency (ICRA) has assigned Relaxo
Footwear Ltd. an A1 rating, indicating it as the best in timely payment of
debt/obligation. Hence, the company captures the status of ' highest safety'.
Expert Management Team:
The company is empowered by a team of experienced, mature, dynamic and result
oriented professionals with an experience in varied fields of marketing,
finance, production, HRD and administration. It is headed by 6 Directors,
a President (operations), 5 GMs and over 30 managers.
Trained workforce:
Relaxo employs over 2500 personnel who are well trained in their respective
production activities including 400 officials spread over all 9 manufacturing
units and the corporate office.
Employees are induced to in house training programs and outside workshops
sponsored by leading institutions to broaden their existing working knowledge
and experience.
To maintain a high degree of
specialization, the company is empowered by world-class manufacturing units, a
wide distribution network, and a goal-oriented work force. Together, they churn
out products with quality par excellence.
9 state-of-the-art infrastructure plants:
The company has established 9 manufacturing plants spanning North India. These are
located in Delhi, Bahadurgarh (Haryana) and Bhiwadi (Rajasthan). With a
cumulative area of over 120,000 sq. feet, these units have a huge set up
enabling massive production.
Each manufacturing unit is equipped with world-class machinery and hi-tech product
testing laboratories.
Distribution network:
A network of 350 distributors and 30,000 retailers operating across India
ensures that all Relaxo products reach customers without any time lag.
ERP implementation:
The Company's IT strategy towards optimum utilization of resources,
facilitation of intra-departmental coordination, reduction in inventory and
collection of information for faster decision making is already underway with
the help of the Enterprise Resource Planning (ERP) software, MFG-Pro, a product
of QAD (USA).
The
Relaxo group has a successful history of over 25 years, since 1976. This is by
virtue of its promoters and associates who have adopted a forward thinking
philosophy backed by the ultimate goal of customer satisfaction.
Promoters:
A vision of Late Shri Moolchand Dua, Relaxo was promoted by his two sons - Mr.
M L Dua, (Chairman), and Mr. R K Dua, (Managing Director).
Today, the Company is managed by a group comprising experts with relevant
experience in all functions of its business, which forms its Expert Management
Team.
Relaxo Footwear, is a premier Indian brand manufacturing Slippers, Joggers, Casuals and School shoes. It has an extensive range within each category, and can be visited by choosing the Product Finder.
Relaxo Exports is a division set up under Relaxo Footwear Ltd. The division headed by Mr. Nikhil Dua, Director, has been exporting footwear to the United States and Europe. It has also been a partner to Nike in the production of Joggers, as well as a number of other international names.
The Relaxo brand itself has built a domestic reputation of product quality and operational reliability, which it offers its International partners as the Relaxo Advantage.
Relaxo invites international partnerships and urges you to go through its website in detail.
Contact
us online or write to us at:
relaxo_corp@satyam.net.in
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM
as part of its Due Diligence do provide comments on Corporate Governance to
identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.46.34 |
|
UK
Pound |
1 |
Rs.84.27 |
|
Euro |
1 |
Rs.57.96 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution
needed for credit transaction. It has above average (strong) capability for
payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry
similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |