MIRA INFORM REPORT
|
Report Date : |
05.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
RELAXO FOOTWEARS LIMITED |
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Registered Office : |
316-319 Allied House, Inderlok, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
13.09.1984 |
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Com. Reg. No.: |
55-19097 |
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Capital Investment / Paid-up Capital : |
Rs.60.006 millions |
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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 : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturing and Trading of Footwear’s. |
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No. of Employees : |
2500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 5400000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Financial positions of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
316-319, Allied House, Inderlok, |
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Tel. No.: |
91-11-23658354 / 23658365 / 23658366 / 23658568 |
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Fax No.: |
91-11-23658431 / 23658773 |
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E-Mail : |
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Website : |
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Factory : |
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RFL-I : |
Plot No. 327, MIE, Bahadurgarh, |
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RFL-II : |
Plot No. 326, MIE, Bahadurgarh, |
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RFL-III : |
A-1130 and 1130 (A), RIICO Industrial Area, Phase-III, Bhiwadi, |
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RFL-IV : |
30/3/2, Rakba Mooja Hasanpur, Tikri Border (Near Sales Tax Office)
Bahadurgarh, |
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RFL-V : |
83-92, SIDCUL Industrial Area, BHEL, Haridwar, |
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RFL-VI : |
342-343, |
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RFL-VII : |
Plot No. 328-329, MIE, Bahadurgarh, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Ramesh Kumar Dua |
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Designation : |
Managing Director |
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Name : |
Mr. Mukand Lal Dua |
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Designation : |
Whole Time Director |
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Name : |
Mr. Nikhil Dua |
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Designation : |
Whole Time Director |
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Name : |
Mr. S.K. Sapra |
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Designation : |
Independent Director |
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Name : |
Mr. Vivek Kumar |
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Designation : |
Independent Director |
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Name : |
Mr. Pankaj Shrimali |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Kapil Garg |
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Designation : |
Company Secretary |
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Name : |
Mr. Sushil Batra |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
% of total No.
of shares |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
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|
9,000,900 |
75.00 |
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|
9,000,900 |
75.00 |
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Total shareholding of Promoter and Promoter Group (A) |
9,000,900 |
75.00 |
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(B) Public Shareholding |
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|
150,000 |
1.25 |
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150,000 |
1.25 |
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1,925,770 |
16.05 |
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632,209 |
5.27 |
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255,815 |
2.13 |
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36,506 |
0.30 |
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22,426 |
0.19 |
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14,080 |
0.12 |
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2,850,300 |
23.75 |
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Total Public shareholding (B) |
3,000,300 |
25.00 |
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Total (A)+(B) |
12,001,200 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
12,001,200 |
- |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Trading of Footwear’s. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity Per day |
Actual
Production (Qty.) |
|
Footwear |
Pair (in lacs) |
NA |
3.52 |
807.24 |
|
Power |
KWH (in lacs) |
NA |
1.44 |
106.44 |
Notes
·
No industrial licence is required to manufacture
any of the products of the Company.
·
Installed capacity, as certified by the management.
GENERAL INFORMATION
|
No. of Employees : |
2500 (Approximately) |
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Bankers : |
·
State Bank of ·
HDFC Bank ·
Standard Chartered Bank ·
ING Vysya Bank |
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Facilities : |
Term loans are secured by first charge on existing and proposed fixed
assets of the Company. Working capital loans are secured by first charge on
current assets, inventories and book-debts of the Company. These loans are
further secured by way of collateral security of equitable mortgage of
commercial, residential land and buildings in the name of Managing Director
and Whole Time Directors and their relatives. These loans are also secured by
personal guarantees of Managing Director and Whole Time Directors. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Gupta and Dua Chartered Accountants |
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Address : |
9, Darya Ganj, |
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Associates : |
·
Relaxo Rubber Private Limited ·
Marvel Polymers Private Limited ·
Relaxo International ·
Nu wave Shoes ·
Patel Oil Mills |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.5/- each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12001200 |
Equity Shares |
Rs.5/- each |
Rs.60.006
millions |
(Of the above
10228600 Equity Shares are allotted as fully paid-up by way of Bonus Shares
issued by capitalisation of General
Reserve and Share Premium Account)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
60.006 |
60.006 |
60.006 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1286.221 |
1039.263 |
679.640 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1346.227 |
1099.269 |
739.646 |
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|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
1437.652 |
1120.401 |
758.974 |
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2] Unsecured Loans |
417.492 |
348.551 |
324.835 |
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TOTAL BORROWING |
1855.144 |
1468.952 |
1083.809 |
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DEFERRED TAX LIABILITIES |
222.891 |
184.343 |
95.313 |
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|
|
|
|
|
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TOTAL |
3424.262 |
2752.564 |
1918.768 |
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APPLICATION OF FUNDS |
|
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|
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|
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FIXED ASSETS [Net Block] |
2684.273 |
2217.252 |
1404.650 |
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Capital work-in-progress |
11.795 |
66.854 |
186.119 |
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|
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INVESTMENT |
0.611 |
0.611 |
0.611 |
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|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
1165.891
|
671.640 |
398.078 |
|
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Sundry Debtors |
232.431
|
208.556 |
197.298 |
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Cash & Bank Balances |
21.550
|
10.393 |
27.324 |
|
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Other Current Assets |
0.234
|
0.064 |
0.054 |
|
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Loans & Advances |
204.680
|
271.434 |
153.094 |
|
Total
Current Assets |
1624.786
|
1162.087 |
775.848 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
544.469
|
349.632 |
247.041 |
|
|
Other Current Liabilities |
303.714
|
298.256 |
157.138 |
|
|
Provisions |
49.020
|
46.352 |
44.281 |
|
Total
Current Liabilities |
897.203
|
694.240 |
448.460 |
|
|
Net Current Assets |
727.583
|
467.847 |
327.388 |
|
|
|
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|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3424.262 |
2752.564 |
1918.768 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
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|
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Net Sales |
6860.103 |
5536.999 |
4074.635 |
|
|
|
Other Income |
61.217 |
41.194 |
25.851 |
|
|
|
TOTAL (A) |
6921.320 |
5578.193 |
4100.486 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material and Manufacturing Expenses |
4535.388 |
3330.230 |
2704.950 |
|
|
|
Increase/Decrease in Stock |
(373.398) |
(127.750) |
(47.283) |
|
|
|
Personnel Expenses |
744.809 |
553.686 |
361.929 |
|
|
|
Administrative, Selling and Other Expenses |
1129.366 |
874.010 |
541.271 |
|
|
|
Extra Ordinary Items |
0.000 |
0.122 |
4.032 |
|
|
|
TOTAL (B) |
6036.165 |
4630.298 |
3564.899 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
885.155 |
947.895 |
535.587 |
|
|
|
|
|
|
|
|
|
Less |
FINANCE CHARGES (D) |
319.844 |
255.537 |
191.083 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
565.311 |
692.358 |
344.504 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
209.548 |
154.570 |
104.701 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
355.763 |
537.788 |
239.803 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
88.632 |
160.866 |
97.480 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
267.131 |
376.922 |
142.323 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
85.959 |
129.336 |
72.544 |
|
|
|
|
|
|
|
|
|
Add |
PRIOR PERIOD
ADJUSTMENTS (NET) |
0.773 |
0.716 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
300.000 |
400.000 |
75.000 |
|
|
|
Proposed Final Dividend on Equity Shares |
12.001 |
12.001 |
9.001 |
|
|
|
Tax on Proposed Final Dividend |
1.947 |
1.993 |
1.530 |
|
|
|
Interim Dividend on Equity Shares |
6.001 |
6.001 |
0.000 |
|
|
|
Tax on Interim Dividend |
0.997 |
1.020 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
32.917 |
85.959 |
129.336 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
211.105 |
105.821 |
71.498 |
|
|
|
|
|
|
|
|
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|
IMPORTS |
|
|
|
|
|
|
|
Capital goods |
161.106 |
193.652 |
104.599 |
|
|
|
Materials including Stores, Spares |
189.663 |
85.496 |
310.046 |
|
|
TOTAL IMPORTS |
350.769 |
279.148 |
414.645 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
22.26 |
31.41 |
11.86 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
2162.460 |
2004.720 |
|
Total Expenditure |
|
1917.060 |
1836.020 |
|
PBIDT (Excl OI) |
|
245.400 |
168.700 |
|
Other Income |
|
0.190 |
0.200 |
|
Operating Profit |
|
245.590 |
168.900 |
|
Interest |
|
47.020 |
48.660 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
198.570 |
120.240 |
|
Depreciation |
|
57.060 |
58.940 |
|
Profit Before Tax |
|
141.510 |
61.300 |
|
Tax |
|
33.590 |
18.290 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
107.920 |
43.010 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
107.920 |
43.010 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.86
|
6.76 |
3.47 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.19
|
9.71 |
5.87 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.26
|
15.91 |
11.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.49 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.04
|
1.97 |
2.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.81
|
1.67 |
1.73 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
During the year,
the Company recorded a Gross Income of Rs.6921.300 millions against Rs.5578.200
millions in previous year i.e an increase of 24%. However, Net Profit after Tax
has decreased from Rs.376.900 millions to Rs.267.100 millions due to constant
increase in material cost during the year.
Now, the Company
is optimistic and striving in order to maintain adequate margin in forthcoming
years.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY SCENARIO
AND FUTURE CHALLENGES
THE INDIAN ECONOMY
Post recession,
the Indian economy has emerged as a major player in the world. The Indian
equity markets fared better than most other emerging markets in 2010. The
inherent strength of
FOOTWEAR IN
The
labor-intensive nature of the footwear industry in
RETAIL IN
Front-ending, this
happy tide is the parallel explosion in
CONTINGENT
LIABILITIES NOT PROVIDED FOR
|
Particulars |
As on 31.03.2011 Rs. in millions |
|
Outstanding
Letters of Credit |
69.917 |
|
Outstanding Bank
Guarantees |
3.850 |
|
Statutory
Liabilities that may arise in respect of matters in appeal. |
9.550 |
|
Surety Bonds
given to Govt. Authorities |
2.823 |
·
The Company has obtained licenses under the Export
Promotion Capital Goods (EPCG) Scheme for importing capital goods at the
concessional rate of custom duty. As per the scheme, the company is obliged to
export eight times of duty saved in next 8 years. The total export obligation
is Rs.545.768 millions against total duty saved of Rs.68.221 millions
·
The lawsuits in respect of certain Intellectual
Property Rights and Trademarks are pending in Courts. The proceedings are at
the preliminary stage and the ultimate outcome of the matter cannot presently
be determined. No provision for any liability that may result has been made.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED
30TH SEPTEMBER, 2011
(Rs. in millions)
|
Particulars |
30.09.2011 Unaudited |
Half Year Ended 30.09.2011 Unaudited |
|
1. a) Net Sales / Income from Operations |
1992.606 |
4139.915 |
|
b) Other Operating Income |
12.117 |
27.270 |
|
Total Operating Income |
2004.723 |
4167.185 |
|
2. Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and Work in progress |
(168.677) |
(171.740) |
|
(b) Consumption of Raw Materials |
1038.960 |
2037.028 |
|
(c) Purchase of traded goods |
208.343 |
384.358 |
|
(d) Employees Cost |
256.612 |
513.255 |
|
(e) Depreciation |
58.939 |
115.999 |
|
(f) Other Expenditure |
500.796 |
990.193 |
|
(g) Total Expenditure |
1894.973 |
3869.093 |
|
3. Profit From Operations before other Income, Interest and Exceptional Items (1-2) |
109.750 |
298.092 |
|
4. Other Income |
0.204 |
0.390 |
|
5. Profit before Interest and Exceptional items (3+4) |
109.954 |
298.482 |
|
6. Interest |
48.659 |
95.681 |
|
7. Profit after interest but before Exceptional items (5-6) |
61.295 |
202.801 |
|
8. Exceptional Items |
0.000 |
0.000 |
|
9. Profit From
Ordinary activities before Tax (7+8) |
61.295 |
202.801 |
|
10. Tax Expenses |
|
|
|
- Current Tax |
12.264 |
40.576 |
|
- MAT credit Entitlement |
6.191 |
17.647 |
|
- Deferred Tax |
(0.167) |
(6.351) |
|
- Earlier Years |
0.000 |
0.000 |
|
11. Net Profit From Ordinary activities after Tax (9-10) |
43.007 |
150.929 |
|
12. Extraordinary Items |
0.000 |
0.000 |
|
13. Net Profit for the period (11-12) |
43.007 |
150.929 |
|
14. Paid Up Equity Share Capital (Face Value of the share Rs.5/- share each) |
60.006 |
60.006 |
|
15. Reserves (Excluding Revaluation Reserves) |
|
|
|
|
|
|
|
16. Earning Per
Share (EPS) in Rs. |
|
|
|
a) Basic and diluted EPS before extraordinary items |
3.58 |
12.57 |
|
b) Basic and diluted EPS after extraordinary items |
3.58 |
12.57 |
|
-Diluted |
|
|
|
17. Public Share Holding |
|
|
|
- Number of Shares |
3000300 |
3000300 |
|
- Percentage of shareholding |
25.00 |
25.00 |
|
18. Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of shares (as a % of the total shareholding of promoters) |
-- |
-- |
|
- Percentage of shares (as a % of the total share capital of the company) |
-- |
-- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
9000900 |
9000900 |
|
- Percentage of Share (as a % of the total shareholding of promoters) |
100.00 |
100.00 |
|
- Percentage of Share (as a % of the total share capital of the company) |
75.00 |
75.00 |
SUMMARY OF ASSETS AND LIABILITIES AS AT 30TH
SEPTEMBER, 2011
(Rs. in millions)
|
Particulars |
Half Year Ended 30.09.2011 Unaudited |
|
Shareholder’s Funds |
|
|
(a) Capital |
60.006 |
|
(b) Reserves and Surplus |
1437.150 |
|
Loan funds |
1911.622 |
|
Deferred tax liability |
216.540 |
|
Total |
3625.318 |
|
|
|
|
Fixed Assets |
2880.184 |
|
Investments |
0.611 |
|
Current Assets, Loans and Advances |
|
|
(a) Inventories |
1297.642 |
|
(b) Sundry Debtors |
291.398 |
|
(c) Cash and Bank Balances |
19.858 |
|
(d) Other Current Assets |
0.149 |
|
(s) Loans and Advances |
134.098 |
|
Total Current Assets |
1743.145 |
|
Less : Current Liabilities and Provisions |
|
|
(a) Liabilities |
946.214 |
|
(b) Provisions |
52.408 |
|
Total Current Liabilities and Provisions |
998.622 |
|
Net Current Assets |
744.523 |
|
Total |
3625.318 |
Notes
1.
The above results were reviewed by the Audit Committee
and have been approved by the Board of Directors at their meeting held on
05.11.2011. The same have been subjected to Limited Review by Statutory
Auditors.
2.
No complaints / requests were [ending at the
beginning of the quarter and during the quarter company received fourteen (14)
complaints / requests which have been resolved by the end of quarter.
3.
The Segment Reporting as per AS-17 issued by ‘The
Chartered Accountants of India’ is not applicable.
FIXED ASSETS
·
Land – Freehold
·
Land – Leasehold
·
Buildings
·
Plant and Machinery
·
Moulds
·
Computers
·
Motor Vehicles – Other
·
Motor Vehicles – Transport
·
Furniture and Fixture
·
Electric Fittings
·
Office Equipments
·
Wooden Structure
·
Wind Mills
WEB DETAILS
BUSINESS DESCRIPTION
Subject is an
India-based company. The Company is engaged in production and trading of
footwear. The Company operates in two segments: footwear and power. Its brands
include
BOARD OF DIRECTORS
Mr. Nikhil Dua - Whole Time Director
Mr. Nikhil Dua is
Whole Time Director of saubject. He is a graduate and has done course from
International School of Modern Shoe- making (
Mr. S. K. Sapra - Non-Executive Independent
Director
Mr. S. K. Sapra is
Non-Executive Independent Director of subject. He is a practicing Chartered
Accountant. He is having more than 50 years of experience in Finance, Accounts
and Management.
Mr. Pankaj Shrimali - Non-Executive Independent
Director
Mr. Pankaj Shrimali is Non-Executive Independent Director of subject. He
is a fellow member of the Institute of Chartered Accountants of India,
Institute of Company Secretaries of India,
PRESS RELEASES
Relaxo Footwears reports 52% fall in Q2 net
profit
CARE sets A-/A2+ ratings on Relaxo
Footwears' bank loans
7
November 2011 - CARE today gave an A- rating to the INR1.95bn (USD 40m/EUR 29m)
long-term bank facilities and an A2+
rating to the INR250m short-term bank facilities of Indian footwear maker
Relaxo Footwears Limited.
The
ratings reflect the company's experienced promoter group, long track presence
in the sector, established brand name, steady increase in income and profitable
operations.
The
ratings are, however, weakened by the vulnerability of the company's margins to
changes in the raw material prices, the intense competition in the sector and
the project execution and stabilisation risk.
If
the company improves its profitability margins and executes its projects
successfully, the agency may decide to revise the ratings.
CARE rates bank loans of Relaxo Footwears at
A-/A2+
November
7, 2011 - CARE today gave an A- rating to the INR-1.95-billion (USD 40m/EUR 29m)
long-term bank facilities and an A2+ rating to the INR-250-million short-term
bank facilities of Indian footwear maker Relaxo Footwears Limited.
The
ratings reflect the company's experienced promoter group, long track presence
in the sector, established brand name, steady increase in income and profitable
operations.
The
ratings are, however, weakened by the vulnerability of the company's margins to
changes in the raw material prices, the intense competition in the sector and
the project execution and stabilisation risk.
If
the company improves its profitability margins and executes its projects
successfully, the agency may decide to revise the ratings.
Relaxo Footwears
gets rating up-gradation from ICRA for bank facilities
India, September
21 -- Credit rating agency, ICRA has upgraded the long term rating of Relaxo
Footwears (RFL) from LBBB+ to A- for an enhanced amount of Rs.1950.000 millions
(earlier Rs.1320.000 millions) fund based limits. The rating carries a stable
outlook. The rating agency has also reaffirmed the short term rating at A2+ for
an enhanced amount of Rs.250.000 millions (earlier Rs.195.000 millions)
non-fund based limits of the company. The long term rating upgrade takes into
account the company's strong revenue growth in FY2011 driven by increased
contribution from the shoes and light weight slippers segment which has also
resulted in its reduced dependence on
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.51.35 |
|
|
1 |
Rs.80.50 |
|
Euro |
1 |
Rs.69.14 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.