Relaxo Footwears LTD 2012

12
ANNUAL REPORT 2011-12

NOTICE
Not|oe |s hereby g|ven that 28
th
Annua| Genera| Meet|ng of the
Members of PE|AXO FOOTWEAPS |lMlTED w||| be he|d at
Sr| Sathya Sa| lnternat|ona| Centre, |odh| Poad, lnst|tut|ona|
Area, Pragat| v|har, New De|h|- 110 003 on Monday, 17
th
day of
September, 2012 at 10.30 a.m. to transaot the fo||ow|ng bus|ness.-
ORDINARY BUSINESS:-
1. To reoe|ve, oons|der and adopt the Aud|ted Ba|anoe Sheet
as at Maroh 31
st
, 2012 and the Prof|t and |oss Aooount for
the year ended on that date and Peports of the Board of
D|reotors and Aud|tors thereon.
2. To appo|nt a D|reotor |n p|aoe of Mr. S.K. Sapra, D|reotor
who ret|res by rotat|on as a D|reotor and be|ng e||g|b|e, offers
h|mse|f for re-appo|ntment.
3. To appo|nt a D|reotor |n p|aoe of Mr. N|kh|| Dua, D|reotor who
ret|res by rotat|on as a D|reotor and be|ng e||g|b|e, offers
h|mse|f for re-appo|ntment.
4. To deo|are d|v|dend on equ|ty shares for the f|nano|a| year
2011-12.
5. To appo|nt Statutory Aud|tor and to f|x the|r remunerat|on
and |n th|s regard to oons|der and |f thought f|t, to pass w|th
or w|thout mod|f|oat|ons), the fo||ow|ng reso|ut|on as an
Ord|nary Peso|ut|on.-
"RESOLVED THAT M/s. Gupta & Dua, Chartered
Aooountants F|rm Peg|strat|on No. 003849 N) be and are
hereby appo|nted as Aud|tors of the Company, to ho|d
off|oe from the oono|us|on of th|s Annua| Genera| Meet|ng
unt|| the oono|us|on of the next Annua| Genera| Meet|ng of
the Company on suoh remunerat|on as sha|| be f|xed by the
Board of D|reotors."
SPECIAL BUSINESS
6. To oons|der and |f thought f|t, to pass w|th or w|thout
mod|f|oat|ons), the fo||ow|ng reso|ut|on as a Speo|a|
Peso|ut|on.-
"RESOLVED THAT pursuant to prov|s|ons of Seot|on 3141)
and other app||oab|e prov|s|ons, |f any, of the Compan|es Aot,
1956 read w|th D|reotors Pe|at|ves Off|oe or P|aoe of Prof|t)
Pu|es 2003, or any amendment or subst|tut|on thereof and
the approva| of the Shareho|der be and |s hereby aooorded
to the re-appo|ntment of Mr. Pahu| Dua re|at|ve of Mr.
Pamesh Kumar Dua, Manag|ng D|reotor, Mr. Mukand |a| Dua,
Who|e T|me D|reotor and Mr. N|kh|| Dua, Who|e T|me D|reotor
of the Company) to ho|d and oont|nue to ho|d off|oe or p|aoe
of prof|t under the Company and des|gnated as F|nanoe
Manager w|th effeot from 1
st
day of Ju|y, 2012 for a per|od
of 2 two) years, |n the grade of `75000-25000-100000)
|no|us|ve of a|| suoh other a||owanoes, perqu|s|tes, benef|ts
and amen|t|es as app||oab|e to the Company's Exeout|ves |n
the s|m||ar grade.
RESOLVED FURTHER THAT the Board of D|reotors be and
|s hereby author|zed to s|gn and exeoute suoh doouments/
wr|t|ngs or other papers as may be neoessary and to do a||
suoh aots, deeds, matters and th|ngs as |t may, |n |ts so|e
d|soret|on, deem neoessary, proper, des|rab|e, exped|ent or
|no|denta| for the purpose and to sett|e any quest|on, d|ff|ou|ty
or doubt that may ar|se |n g|v|ng effeot to th|s reso|ut|on."
By Order of the Board of D|reotors
For Pe|axo Footwears ||m|ted
P|aoe . De|h| Kap|| Garg
Date . May 12, 2012 Company Seoretary
NOTES:-
l. 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
4S HOURS, BEFORE THE COMMENCEMENT OF THE
MEETING.
ll. Corporate Members |ntend|ng to send the|r author|zed
representat|ve to attend the Meet|ng are requested to send
a oert|f|ed oopy of the Board Peso|ut|on author|z|ng the|r
representat|ve to attend and vote on the|r beha|f at the
Meet|ng.
lll. a) The Peg|ster of Members and Share Transfer Book of the
Company sha|| rema|n o|osed from Tuesday, 11.09.2012
to Monday, 17.09.2012 both days |no|us|ve).
b) D|v|dend on Equ|ty Share of the Company, as
reoommended by the Board of D|reotors, |f deo|ared at
the Annua| Genera| Meet|ng, w||| be pa|d on or before
Tuesday, 16
th
day of Ootober, 2012.
o) Members may p|ease note that the d|v|dend warrants/
drafts are payab|e at par at the des|gnated branohes of the
bank for an |n|t|a| per|od of 3 months on|y. Thereafter, the
d|v|dend warrant or reva||dat|on |s payab|e at a|| branohes
of the bank. The members are therefore adv|sed to enoash
d|v|dend warrants/drafts w|th|n |n|t|a| va||d|ty per|od.
lv. Members/prox|es are requested to br|ng the|r Attendanoe S||p
du|y f|||ed |n and s|gned for attend|ng the meet|ng. Members
who ho|d share |n Dematera||sed Form are requested to
wr|te the|r C||ent lD and DP lD and those who ho|d share |n
phys|oa| form are requested to wr|te the|r Fo||o Number |n
Attendanoe S||p for attend|ng the meet|ng and p|ease note
that no g|ft or ooupon w||| be d|str|buted at the meet|ng.
v. A|| doouments referred to |n the aooompany|ng Not|oe are
open for |nspeot|on at the Peg|stered Off|oe of the Company
on a|| work|ng days between 10.00 a.m. and 1.00 p.m. up to
the date of Annua| Genera| Meet|ng, exoept on Sundays and
other Ho||days.
vl. Members des|r|ng any |nformat|on on the Aooounts are
requested to wr|te to the Company at |ts Peg|stered Off|oe,
316-319, A|||ed House, lnder|ok Chowk, O|d Pohtak Poad,
13
RELAXO FOOTWEARS LIMITED
De|h|-110 035, g|v|ng at |east 7 days not|oe pr|or to the date
of Annua| Genera| Meet|ng to enab|e the Management to
oo||eot and keep the |nformat|on ready.
vll. ln order to avo|d the |no|denoe of fraudu|ent enoashment of
d|v|dend warrants, the Members ho|d|ng shares |n phys|oa|
form are requested to prov|de the|r Bank Aooount Number,
Name and Address of the Bank/Branoh to the Company or
Karvy to enab|e them to |noorporate the same |n d|v|dend
warrant.
Members ho|d|ng shares |n e|eotron|o form may p|ease note
that the Bank Aooount deta||s and 9-d|g|t MlCP Code of the|r
Bankers, as noted |n the reoords of the|r depos|tory, sha||
be used for the purpose of rem|ttanoe of d|v|dend through
Nat|ona| E|eotron|o C|ear|ng Serv|oe NECS), or for pr|nt|ng on
d|v|dend warrants wherever app||oab|e. Therefore, members
are requested to update the|r Bank Aooount part|ou|ars,
Change of address and other deta||s w|th the|r respeot|ve
Depos|tory Part|o|pants.
vlll. Members are hereby |nformed that d|v|dends wh|oh rema|n
uno|a|med / unenoashed over a per|od of 7 Years have to
be transferred by the Company to lnvestor Eduoat|on &
Proteot|on Fund lEPF) oonst|tuted by the Centra| Government
under seot|on 250A and 205C of the Compan|es Aot, 1956.
Further, under the Compan|es Aot, 1956 no o|a|m sha|| ||e for
the uno|a|med d|v|dend from lEPF by the Shareho|ders.
lX. The M|n|stry of Corporate Affa|rs has |ntroduoed "Green
ln|t|at|ve" whereby the doouments are perm|tted to be served
on the members through e|eotron|o mode |.e. ema||. The
|n|t|at|ve |s a step towards proteot|on of env|ronment and
enab||ng faster oommun|oat|on w|th the members.
Aooord|ng|y, the Company proposed to serve a|| the
doouments to e-ma|| addresses of the members. Members
are requested to prov|de/update the|r e-ma|| addresses w|th
the|r respeot|ve Depos|tory Part|o|pants DP) or send and
ema|| at re|axo@karvy.oom to get the Annua| Peport and
other doouments on suoh e-ma|| address. Members ho|d|ng
shares |n phys|oa| form are a|so requested to |nt|mate the|r
e-ma|| address to Karvy by ema|| at re|axo@karvy.oom or by
send|ng a oommun|oat|on at the address ment|oned be|ow.
M/s. KAPvY COMPUTEPSHAPE PPlvATE |lMlTED
17-24, v|tta| Pao Nagar
Madhapur-Hyderabad
Andhra Pradesh - 500 081, lnd|a
X. The deta||s |n respeot of uno|a|med d|v|dend when due for transfer to the sa|d fund are g|ven be|ow.
F|nanc|a|
Year
Date of
Dec|arat|on
Date of Transfer
to Unpa|d
D|v|dend A/C
Last date of
C|a|m
Due date of
transfer to IEPF
Amount of
Unc|a|med
D|v|dend as on
S1.0S.2012
(`)
2004-05 22.09.05 28.10.05 27.10.12 26.11.12 1315
2005-06 21.09.06 27.10.06 26.10.13 25.11.13 19052
2006-07 24.09.07 30.10.07 29.10.14 28.11.14 58140
2007-08 26.09.08 01.11.08 31.10.15 30.11.15 48843
2008-09 25.09.09 31.10.09 30.10.16 29.11.16 55265
2009-10 lnter|m) 31.10.09 06.12.09 05.12.16 04.01.17 64965
2009-10 24.09.10 30.10.10 29.10.17 28.11.17 82533
2010-11 lnter|m) 03.11.10 09.12.10 08.12.17 07.01.18 40623
2010-11 20.09.11 26.10.11 25.10.18 24.11.18 69758
14
EXPLANATORY STATEMENT PURSUANT TO SECTION 17S (2) OF THE COMPANIES ACT, 195S
The fo||ow|ng Exp|anatory Statement sets out a|| mater|a| faots re|at|ng to the Speo|a| Bus|ness ment|oned |n the aooompany|ng Not|oe.
Item No. S
Mr. Pahu| Dua be re-appo|nted as F|nanoe Manager w|th effeot from 1
st
Ju|y, 2012 for a per|od of 2 two) years |n the grade of ` 75000-
25000-100000) |no|us|ve of a|| suoh other a||owanoes, perqu|s|tes, benef|ts and amen|t|es as app||oab|e to the Company's Exeout|ves
|n the s|m||ar grade. As per the prov|s|ons of Seot|on 3141) of the Compan|es Aot, 1956 |f the month|y remunerat|on payab|e to re|at|ve
of d|reotor |s `50000/- or more, the approva| of the shareho|ders |s requ|red.
The Board reoommends the Peso|ut|ons as set out at ltem no. 6 of the Not|oe for your approva|.
Mr. Pamesh Kumar Dua, Mr. Mukand |a| Dua and Mr. N|kh|| Dua, be|ng re|at|ve of Mr. Pahu| Dua are deemed to be oons|dered or
|nterested |n the pass|ng of abovement|oned reso|ut|on.
None of the other D|reotors of the Company |s, |n any way, oonoerned or |nterested |n the pass|ng of above ment|oned reso|ut|on.
INFORMATION REQUIRED TO BE GIVEN PURSUANT TO CLAUSE 49 OF THE LISTING AGREEMENT
1. Mr. N|kh|| Dua |s a graduate and has done oourse from lnternat|ona| Sohoo| of Modern Shoe-mak|ng Czeoh Pepub||o). He has
an exper|enoe of 17 years |n the shoe d|v|s|on of the Company. He has r|oh know|edge w|th regard to produot m|x and market
deve|opment |n respeot of footwear |ndustry. Mr. N|kh|| Dua ho|ds 450045 Equ|ty Shares of the Company. He |s the member of
Aud|t Comm|ttee of the Company.
2. Mr. S.K. Sapra, |s a praot|o|ng Chartered Aooountant. He |s hav|ng more than 50 years of exper|enoe |n F|nanoe, Aooounts and
Management. He |s member of Aud|t Comm|ttee, Pemunerat|on Comm|ttee and Shareho|ders' Gr|evanoe and Share Transfer
Comm|ttee of Company. He ho|ds 100 Equ|ty Shares as Jo|nt Shareho|der
15
DIRECTORS' REPORT
Dear Members,
The Board of D|reotors of your Company take p|easure |n
present|ng |ts report on the work|ng of the Company for the
F|nano|a| Year 2011-12.
1 FINANCIAL RESULTS
` |n |aos)
Part|cu|ars: 2011-12 2010-11
Sa|es & Other lnoome 86573.20 69213.20
Tota| Expend|ture 78910.26 63563.29
Prof|t before Depreo|at|on & Tax 7662.94 5649.91
Depreo|at|on 2310.29 2095.48
Prof|t before Tax & Extra
Ord|nary |tems
5352.65 3554.43
Extra Ord|nary |tems 3.83 -
Prof|t before Tax 5348.82 3554.43
Payment/Prov|s|on for Tax 1358.32 883.12
Prof|t after Tax 3990.50 2671.31
Ba|anoe brought forward from
Prev|ous year
329.17 859.59
Pr|or Per|od Adjustment - 7.73
Amount ava||ab|e for
Appropr|at|on
4319.67 3538.63
Appropr|at|on :
F|na| D|v|dend 180.02 120.01
Tax on F|na| D|v|dend 29.20 19.47
lnter|m D|v|dend - 60.01
Tax on lnter|m D|v|dend - 9.97
Transfer to Genera| Peserve 3500.00 3000.00
Ba|anoe oarr|ed to Ba|anoe
Sheet
610.45 329.17
TOTAL 4S19.S7 S5SS.SS
Bas|o and D||uted Earn|ng per
Share |n `)
33.25 22.26
2. BUSINESS PERFORMANCE
During the year under review, the Company performed well,
inspite of difficult conditions prevailing in the domestic and
world market for greater part of the year, total Revenue
achieved `86573.20 lacs as against `69213.20 lacs in
previous year which reflects growth of 25%.The EBlDTA
rose by 31% to `9526.29 lacs as compared to `7240.76
lacs in previous year. The Earning per Share increased from
`22.26 to `33.25 on Equity Share of `5/- each.
The key raw materials used in the manufacturing of
footwear are Rubber & EvA. Due to the unprecedented
price volatility during the major part of the year, the
increased costs could not be recovered to its fullest.
However, during the last quarter, the prices of the said
materials started declining and dropped significantly. This
impact was quite noticeable in the last quarter, resulting
in an overall increase in the profit. The improvement on
the profit was also yielded due to timely sales realizations,
effective cost rationalization in marketing cost and
overheads.
The Retail business contributed `6119.42 lacs as compared
to `4592.36 lacs in total revenue of the Company. During
the year under review, 25 outlets were added making the
total to 149.
The Company resulted growth of 36% in export turnover
by achieving an export turnover of `3052.82 lacs as against
`2208.21 lacs in previous year. The Company successfully
participated in Expo Riva Shoe Fair in ltaly to showcase its
products and prospective buyers appreciated the quality
and designs.The Company has been directly exporting to
sixteen countries. The Council of Leather Export of lndia
has conferred upon the Company an award of 2nd largest
non leather exporter for the financial year 2010-11.
S. DIVIDEND
Your Directors are pleased to recommend a dividend of
30% on the equity shares of the Company for the financial
year 2011-12.
4. AUDITORS
The Statutory Auditors of the Company M/s. Gupta & Dua,
Chartered Accountants hold office till the conclusion of
the ensuing Annual General Meeting and are eligible for
re-appointment. They have furnished the requisite certificate
to the effect that their re-appointment, if effected, will be
in accordance with Section 224(1B) of the Companies
Act, 1956.
5. AUDITORS' REPORT
The observation of the Auditors on the Accounts for the
year under report have been suitably explained in the Notes
to Accounts and do not require any further clarification.
S. DIRECTORS
Mr. S.K. Sapra and Mr. Nikhil Dua, Directors of the Company
retire by rotation at the ensuing Annual General Meeting
and being eligible, offer themselves for re-appointment.
Your Directors recommend their appointment as the
Directors of the Company .
7. MANAGEMENT DISCUSSION & ANALYSIS REPORT
The Management Discussion and Analysis Report as
required under Clause 49 of the Listing Agreement with
the Stock Exchanges forms part of this Report.
S. PU PROJECT
lt is High Fashionable and formal footwear on PU (Poly
Urethane) technology with additional features of longevity,
skid resistance and light weight. The Company has already
launched this product range under Flite PU - Fashion in
one of the existing plant and is getting good response from
the end customer. Further, your Company is in advance
16
stage of commissioning a full fledged manufacturing unit
in current financial year.
9. LOGISTIC
To synchronise with the pace of growth of the Company,
Logistic department is being revamped by adding up
distribution infrastructure. lt has played pivotal role in
the growth of the Company. lt ensures availability of
right goods at right place at right time. The company has
effective logistic department which is supported by five
warehouse across lndia. The Company received 'Supply
Chain Leader 2011' award from lndustry 2.0 Technology
Management Magazine.
10. CREDIT RATING
The lCRA and CARE have assigned the rating A- for long
term fund facility and A2+ for short term fund facility to
your Company. These ratings represent adequate safety
of credit facilities given to the Company.
11. CORPORATE GOVERNANCE REPORT
The Corporate Governance Report as stipulated under
Clause 49 of the Listing Agreement, forms part of this Report.
The requisite certificate from the Statutory Auditors of the
Company, M/s. Gupta & Dua, Chartered Accountants,
confirming compliance with the conditions of Corporate
Governance as stipulated under the aforesaid Clause 49,
is attached to Corporate Governance Report.
12. FIXED DEPOSITS
The Company has not invited or accepted any Fixed
Deposits from Public during the year under review.
1S. DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956
with regard to Directors' Responsibility Statement, it is
hereby confirmed :
1. That the applicable Accounting Standards have been
followed in the preparation of the Annual Accounts
and that there have been no material departures there
from;
2. That the Directors have selected such accounting
policies and applied them consistently and made
judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of
affairs of the Company at the end of the financial year
and of the profit of the Company for year under review.
3. That the Directors have taken proper and sufficient
care for the maintenance of adequate accounting
records in accordance with the provisions of the
Companies Act, 1956 for safe-guarding the assets of
the Company and for preventing and detecting fraud
and other irregularities;
4. That the Directors have prepared the Annual Accounts
on a going concern basis.
14. CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND
OUT GO
The particulars as prescribed under section 217(1)(e) of the
Companies Act, 1956 read with Companies [Disclosure of
Particulars in the report of Board of Directors| Rules, 1988,
are set out in Annexure forming part of the Directors
Report.
15. FINANCIAL RISK
The Company has policy to hedge payment of foreign
currency in order to reduce risk of volatile international
market of foreign exchange.
All properties, including building, plant, machinery,
furniture, fixture and stocks of the Company have been
properly insured against all kind of risks.
1S. HUMAN RESOURCE MANAGEMENT & INDUSTRIAL
RELATIONS
The Company stayed focused on overall development of
its human capital by organizing training and development
programs to boost up the morale of employees and
to maintain work life balance. The lndustrial Relations
in all the units of the Company remained cordial during
the year under review. The Company has also provided
opportunities to willing workers to upgrade their basic
educational qualification at different levels-matriculation/
lTl/Diploma and graduation. The company has commenced
hiring professionals in all facets from Manufacturing to
Sales for building a strong talent pool of future Managers
and Leaders.
17. CEO AND CFO CERTIFICATION
Pursuant to the requirement of Clause 49 of the Listing
Agreement, the CEO and CFO certification is attached
herewith the Annual Report. The Managing Director &
CEO and the Chief Financial Officer also provide quarterly
certification on financial results while placing the financial
results before the Board in terms of Clause 41 of the
Listing Agreement.
1S. PARTICULARS OF EMPLOYEES
The Statement of Particulars pursuant to section 217 (2A)
of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Amendment Rules, 2002 forms
part of this report. However, as per the provisions of
Section 219 (1) (b) (iv) of the Companies Act, 1956, the
Reports and Accounts are being sent to all shareholders
excluding the above statement. The statement is available
for inspection at the Registered Office during working
hours up to the date of the Annual General Meeting or may
write to the Company Secretary for a copy.
19. ACKNOWLEDGEMENT
Your Directors express their gratitude to the Company's
shareholders, business partners and suppliers for their
understanding and support. Your Director's record their
17
appreciation and gratitude to the banks for their continued
and timely assistance in meeting the Company's resource
requirement. Finally, your Directors acknowledge the
dedicated services rendered by all employees of the
Company.
For and on behalf of the Board of Directors
RAMESH KUMAR DUA MUKAND LAL DUA
Manag|ng D|reotor Who|e T|me D|reotor
P|aoe . De|h|
Date . May 12, 2012
Annexure to the D|rectors' Report
A. CONSERVATION OF ENERGY
Energy oonservat|on |s an ongo|ng prooess |n the Company
by |nvest|ng |n the |atest energy eff|o|ent teohno|og|es, to
oonserve energy on a|| |ooat|ons, p|ants and s|tes of the
Company. As a part of Company's endeavour towards
oonservat|on of energy and prevent|on of energy wastage,
oonstant |mprovements are undertaken |n order to oonserve
energy on an ongo|ng bas|s.
The energy oonservat|on measure |nd|oated above has
he|ped the Company to restr|ot the |mpaot of |norease |n the
oost of energy thereby reduo|ng the oost of produot|on of
goods to that extent.
B. TECHNOLOGY ABSORPTION
I. RESEARCH AND DEVELOPMENT
a) Spec|f|c areas |n wh|ch R & D carr|ed out by
the Company:
- Mater|a| Deve|opment
- Produot/prooess deve|opment
- Energy Sav|ng
- Mou|ds Deve|opment
- Waste reoyo||ng
- Cater to Export Speo|a| requ|rement
- lE Study for Work|ng T|me Standards and Norms
b) Benef|ts der|ved as a resu|t of R & D
- lmprovement |n qua||ty
- Deve|opment of new produot/prooess
c) Expend|ture on R & D
- Peourr|ng . `38.35 |aos oharged out as expenses
through respeot|ve Head of aooounts
II. TECHNOLOGY ABSORPTION, ADAPTATION &
INNOVATION
a) Efforts made towards techno|ogy
- lntroduot|on of |ow shr|nkage footwear
- lntroduot|on of ||ght we|ght footwear
- lntroduot|on of P.U. footwear
b) Benef|t der|ved as a resu|t of the above efforts
- Better market aooeptanoe
- lmprovement |n qua||ty
- Peduot|on |n prooess oyo|e t|me
- More Part|o|pat|on |n Export
- Peduot|on |n overa|| oost of produot|on
c) Techno|ogy |mported dur|ng |ast 5 years : N||
III. FOREIGN EXCHANGE EARNINGS AND OUTGO
a) Act|v|t|es re|at|ng to export |n|t|at|ves taken to
|ncrease exports, deve|opment of new export
for products and export p|ans:
Your Company regu|ar|y part|o|pate |n prest|g|ous
|nternat|ona| exh|b|t|on and has deve|oped markets
of M|dd|e East, Europe & Afr|oa and these markets
w||| |norease overa|| export of Company |n oom|ng
years.
b) Tota| Fore|gn Currency used and earned
Used . `5165.29 |aos
Earned . `2975.45 |aos
18
1. Industry Overv|ew
Dur|ng the year under rev|ew, lnd|a's Eoonom|o growth rate
s|owed to 6.50% aga|nst 8.40% |n the prev|ous two f|nano|a|
years. The eoonomy w|tnessed h|gh |eve| of |nf|at|on, vo|at|||ty
|n f|nano|a| markets and oonoerns on g|oba| s|ow-down.
Desp|te, a|| these faots, footwear be|ng the bas|o oonsumer
neoess|ty, the lnd|an domest|o footwear seotor has grown at
a oompounded annua| growth rate CAGP) of about 15%.
lnd|a at present, produoes near|y 3 b||||on pa|rs annua||y that
|s est|mated at around `26000 orores from organ|zed and
unorgan|zed seotor. The footwear |ndustry |s |abour |ntens|ve
|ndustry wh|oh has been generat|ng emp|oyment for over
20 |ao peop|e and |s s|gn|f|oant|y oontr|but|ng to the growth
of lnd|an eoonomy. The |ow produot|on oost, abundant
ava||ab|||ty of |nputs, expand|ng oonsumpt|on market w|th
grow|ng fash|on oonso|ousness among a|| strata of soo|ety
has set the lnd|an footwear lndustry at grow|ng p|atform.
2. Bus|ness Overv|ew
There are near|y 4000 un|ts engaged |n the produot|on of
footwear |n lnd|a and they ex|st both |n the trad|t|ona| and
modern seotor. The trad|t|ona| seotor oompr|ses most|y
sma|| soa|e un|ts, wh|oh aooounts for over 55% of the
tota| produot|on. The modern seotor on the other hand, |s
made up of oompan|es w|th more advanoed teohno|og|oa|
|nfrastruoture and oontemporary att|tudes, and w|th |n-
house des|gn un|ts that are oater|ng to sh|ft|ng oonsumer
preferenoes.
The oompany reoorded a growth of 25% |n revenue and 49%
|n prof|t after taxes desp|te the pressure of raw mater|a| pr|oe.
Th|s was poss|b|e due to the foous on the |ntroduot|on of new
produots and a oont|nu|ng thrust upon the reta|| and export
bus|ness |n|t|at|ve. Today, Pe|axo Footwears ||m|ted |s the
2
nd
|argest footwear oompany |n lnd|a measured |n terms of
va|ue and |ts brands v|z. Pe|axo, F||te and Sparx w|th a|most
par|ty now have enormous potent|a| of growth |n forthoom|ng
years. W|th a foous towards oreat|ng strong brand v|s|b|||ty,
the Pe|axo Peta|| Shoppe has a|so p|ayed an |mperat|ve ro|e
|n the growth of the oompany. The oompany has a|so been
expand|ng |ts geograph|o footpr|nt w|th a growth of export
bus|ness |n As|an and M|dd|e East Countr|es.
MANAGEMENT DISCUSSION & ANALYSIS
S. Threats, R|sks and concerns
Our produots faoe oompet|t|on from the produots of g|oba|
& estab||shed lnd|an oompan|es and |t oont|nues to exert
pressure on the operat|ons.
W|th the grow|ng demand of our produots, there |s a|ways
a r|sk of ava||ab|||ty of manpower for |noreas|ng produot|on
|eve|s. To m|t|gate th|s r|sk, the oompany has been foous|ng
on |abour retent|on po||oy, by way of mot|vat|ng them through
oont|nuous tra|n|ng programs, monetary awards, and better
hyg|en|o work|ng env|ronment.
The fore|gn exohange r|sk |s hedged by way of forward
oontraot.
Appropr|ate prooedures for r|sk assessment and m|t|gat|on
|n other areas as we|| have been |a|d by the oompany & the|r
assessments are rev|ewed by the management from t|me
to t|me.
4. Interna| Aud|t & Contro| Systems
The |nterna| oontro| system of the oompany |s regu|ar|y
rev|ewed by the Aud|t Comm|ttee and Board of D|reotors of
the oompany wh|oh assure opt|ma| ut|||zat|on of resouroes,
re||ab|||ty of f|nano|a| report|ng and oomp||anoe w|th app||oab|e
|aws and regu|at|ons. The Management oontro| system
ensures t|me|y reoord|ng and report|ng of a|| oommero|a| and
f|nano|a| transaot|ons |n oonform|ty w|th genera||y aooepted
Aooount|ng praot|oes.
The observat|ons and reoommendat|ons of Aud|t Comm|ttee
|n respeot of lnterna| Aud|t of the oompany are taken |nto
oons|derat|on by the Board of D|reotors so as to take
adequate fo||ow up measures to |mp|ement the |dent|f|ed
|mprovement opportun|t|es.
5. Out|ook
The overa|| out|ook of the bus|ness oont|nues to be pos|t|ve
w|th the soften|ng of raw mater|a| pr|oes, oont|nuous
prooess |mprovements and further strengthen|ng of |og|st|o
|nfrastruoture.
19
CORPORATE GOVERNANCE REPORT
AT THE HEART OF THE CORPORATE
Corporate Governanoe |s about our oomm|tment to human va|ues
|n bus|ness and trans|ates |nto eth|oa| oorporate oonduot. lt |s story
of a Company ohooses to manage |tse|f. Corporate Governanoe
|s oonoern of many - the oorporate and other struotures, |ts
ou|ture, po||o|es and the manner |n wh|oh |t dea|s w|th var|ous
stakeho|ders. T|me|y and aoourate d|so|osure of |nformat|on
regard|ng the f|nano|a| s|tuat|on, performanoe, ownersh|p and
governanoe of the Company |s an |mportant part of Corporate
Governanoe. When adhered to and |mp|emented |n the best of
sp|r|t, oorporate governanoe oan measurab|y |mpaot the aot|v|t|es,
prooesses and po||o|es of the organ|zat|on, and portrays a pos|t|ve
v|s|on to |nvestors, and enhanoe the trust and oonf|denoe of
the stakeho|ders. lt oan a|so |nf|uenoe |ts |mmed|ate oorporate
env|ronment and the soo|ety at |arge |n a pos|t|ve way and have a
hea|thy |mpaot on the nat|ona| eoonomy.
At Pe|axo Footwears ||m|ted, we fu||y oomp|y w|th, and |ndeed go
beyond, a|| of them, We be||eve that sound oorporate governanoe
|s v|ta| for reta|n|ng stakeho|der fa|th, and |n w|nn|ng new |nvestor
trust. Some of the sa||ent pr|no|p|es of Corporate Governanoe at
Pe|axo Footwears ||m|ted are sat|sfy|ng not just the |etter - but the
sp|r|t - of |aw, transparenoy |n oonduot and oommun|oat|on, mak|ng
a o|ear d|st|not|on between persona| oonven|enoes and oorporate
resouroes, o|ar|ty and t|me||ness |n d|ssem|nat|on of |nformat|on,
oomp||anoe w|th a|| |aws and an eth|oa| and honest oorporate
struoture that |s dr|ven so|e|y by bus|ness oons|derat|ons.
1. PHILOSPHY OF THE COMPANY ON CORPORATE
GOVERNANCE
Corporate Governanoe has oooup|ed p|vota| pos|t|on at
Pe|axo Footwears ||m|ted s|noe |noept|on. The bus|ness
has, s|noe then, been oonduoted |n most transparent and
eth|oa| manner. A|| the neoessary steps have been taken,
w|th ohang|ng soo|o-eoonom|o soenar|o to ensure that the
oonduot of bus|ness |s as per the po||o|es of the Management,
name|y Honesty, Transparenoy and Eth|oa| Behav|or. The
Company's po||o|es and Praot|oes are a|med at eff|o|ent
oonduot of bus|ness and |n s|noere|y and effeot|ve|y meet|ng
|ts ob||gat|ons towards |ts stakeho|ders, through an effeot|ve
and profess|ona| Board of D|reotors, oomp|ete and t|me|y
d|ssem|nat|on of |nformat|on through t|me|y d|so|osure and
max|m|zat|on of shareho|ders wea|th.
2. BOARD OF DIRECTORS
ln terms of C|ause 49 of the ||st|ng Agreement, the Board
shou|d have an opt|mum oomb|nat|on of Exeout|ve and Non-
Exeout|ve D|reotors and at |east 50% of the Board shou|d
oompr|se of Non-Exeout|ve D|reotors. Further at |east one-
th|rd of the Board members shou|d oompr|se of lndependent
D|reotors, |f the Cha|rman |s Non-Exeout|ve and at |east ha|f
of the Board shou|d be of |ndependent D|reotors |n oase of
an Exeout|ve Cha|rman.
Compos|t|on of the Board of D|rectors
The oompos|t|on of the present Board of D|reotors of the
Company, at present, |s |n ||ne w|th C|ause 49 of the ||st|ng
Agreement. lt has one Manag|ng D|reotor, Two Who|e T|me
D|reotors and Three Non- Exeout|ve lndependent D|reotors.
Category Name of D|rectors
Promoters and Exeout|ve
D|reotors
Mr. Pamesh Kumar Dua,
Manag|ng D|reotor
Mr. Mukand |a| Dua,
Who|e T|me D|reotor
Mr. N|kh|| Dua,
Who|e T|me D|reotor
lndependent and Non-
Exeout|ve D|reotors
Mr. S.K. Sapra
Mr. v|vek Kumar
Mr. Pankaj Shr|ma||
Deta||s of Board Meet|ngs
Dur|ng the F|nano|a| year 2011-12, the Board of D|reotors met
f|ve t|mes.
The max|mum gap between any two Board meet|ngs was
|ess than 4 months, as g|ven be|ow.
Date of
Meet|ng
No. of D|rectors
present
Tota| Strength
of the Board
26.05.2011 6 6
30.07.2011 6 6
05.11.2011 6 6
02.02.2012 6 6
24.03.2012 5 6
Attendanoe reoords of the D|reotors at Board Meet|ngs and at
the Annua| Genera| Meet|ng AGM) dur|ng the F|nano|a| year
2011 - 12 |s as under .
Name of D|rectors No. of Board
Meet|ngs attended
Attendance |n AGM he|d
on 20.09.2011
Number of other Compan|es
|n wh|ch D|rectorsh|p he|d
Mr. Pamesh Kumar Dua 5 Present 2
Mr. Mukand |a| Dua 4 Present 2
Mr. N|kh|| Dua 5 Present -
Mr. S.K. Sapra 5 Present -
Mr. v|vek Kumar 5 Present 1
Mr. Pankaj Shr|ma|| 5 Present 3
20
S. COMMITTEES OF THE BOARD OF DIRECTORS AS ON
S1.0S.2012
l. Aud|t Comm|ttee
ll. Shareho|ders'/lnvestors' Gr|evanoes and Share Transfer
Comm|ttee
lll. Pemunerat|on Comm|ttee
I. AUDIT COMMITTEE
The Company oonst|tuted the Aud|t Comm|ttee |n ||ne
w|th the requ|rement of Seot|on 292 - A of Compan|es
Aot, 1956, read w|th C|ause 49 of the ||st|ng Agreement.
TERMS OF REFERENCE:
a) Oversee|ng Company's f|nano|a| report|ng prooesses
and the d|so|osure of |ts f|nano|a| |nformat|on to ensure
that the f|nano|a| statement |s oorreot, suff|o|ent and
ored|b|e.
b) Pev|ew|ng w|th the Management, the annua| f|nano|a|
statements before subm|ss|on to the Board for
approva|.
o) D|souss|on and rev|ew of per|od|o aud|t reports.
d) D|souss|on w|th Externa| Aud|tors about the soope of
aud|t |no|ud|ng the observat|ons of the Aud|tors.
e) Approv|ng |nterna| aud|t p|ans and |nterna| oontro|
funot|on and rev|ew|ng the eff|oaoy of the funot|ons.
The Aud|t Comm|ttee |s empowered, pursuant to the
terms of referenoe to .
lnvest|gate any aot|v|ty w|th|n |ts terms of referenoe
and to seek any |nformat|on |t requ|res from any
emp|oyee.
Obta|n |ega| or other |ndependent profess|ona| adv|oe
and to seoure the attendanoe of outs|ders w|th
re|evant expert|se, wh|oh |s oons|dered neoessary.
COMPOSITION AND ATTENDANCE
The Aud|t Comm|ttee oompr|sed three D|reotors, name|y,
Mr. Pankaj Shr|ma||, lndependent D|reotor and Cha|rman
of the Comm|ttee, Mr. S.K. Sapra, lndependent D|reotor
and Mr. N|kh|| Dua, Exeout|ve D|reotor.
The deta||s of the meet|ngs and the attendanoe of
members of the Comm|ttee |n the meet|ngs he|d dur|ng
the F|nano|a| year 2011-12 are g|ven be|ow.
Name of
Members
No. of
Meet|ngs he|d
No. of
Meet|ngs
attended
Mr. Pankaj Shr|ma|| 4 4
Mr. S.K. Sapra 4 4
Mr. N|kh|| Dua 4 4
Members of the Aud|t Comm|ttee have requ|s|te F|nano|a|
and Management expert|se. The Company Seoretary of
the Company aots as the Seoretary of the Comm|ttee.
II. SHAREHOLDERS'/INVESTORS' GRIEVANCE AND
SHARE TRANSFER COMMITTEE
The Company has oonst|tuted Shareho|ders'/lnvestors'
Gr|evanoe and Share Transfer Comm|ttee to speo|f|oa||y
|ook |nto the redressa| of Shareho|ders and lnvestors
oomp|a|nts.
TERMS OF REFERENCE:
The Comm|ttee superv|ses the meohan|sm for redressa|
of |nvestors' gr|evanoe and ensures oord|a| |nvestors
re|at|ons. The Comm|ttee performs the fo||ow|ng
funot|ons.
Transfer/transm|ss|on of shares.
Sp||t-up/sub-d|v|s|on and oonso||dat|on of shares.
lssue of new and dup||oate share oert|f|oates.
Peg|strat|on of Power of Attorneys, Probates, |etter
of transm|ss|on or other doouments.
To open /o|ose Bank Aooounts) of the Company
for rem|ttanoe of d|v|dend and |ssue |nstruot|ons to
bank from t|me to t|me |n th|s regard
To |ook |nto the redressa| of shareho|ders' oomp|a|nts
and enqu|r|es.
Any a|||ed matter out of and |no|denta| to these
funot|ons
COMPOSITION AND ATTENDANCE
The Comm|ttee oompr|sed three D|reotors, Mr. S.K. Sapra,
Non Exeout|ve lndependent D|reotor and Cha|rman of the
Comm|ttee, Mr. Pamesh Kumar Dua, Manag|ng D|reotor
and Mr. Mukand |a| Dua, Who|e T|me D|reotor.
Dur|ng the f|nano|a| year 2011-12, three meet|ngs of the
Comm|ttee were he|d and the attendanoe of members
at the meet|ngs |s g|ven be|ow.
Name of Members No. of
Meet|ngs
he|d
No. of
Meet|ngs
attended
Mr. S.K. Sapra 3 3
Mr. Pamesh Kumar Dua 3 3
Mr. Mukand |a| Dua 3 3
A|| oomp|a|nts, suggest|ons and gr|evanoes are prompt|y
dea|t w|th and reso|ved w|th|n 15 days un|ess there |s
some d|spute and/or other |ega| oonstra|nt.
Mr. Kap|| Garg, Company Seoretary |s the Comp||anoe
Off|oer of the Company.
III. REMUNERATION COMMITTEE
The Company oonst|tuted "Pemunerat|on Comm|ttee"
to reoommend the Board of D|reotors, the oompensat|on
and remunerat|on of D|reotors and Sen|or Manager|a|
Personne|.
TERMS OF REFERENCE
The remunerat|on po||oy of the Company |s d|reoted
21
towards reward|ng performanoe, based on per|od|o rev|ew of performanoe and aoh|evements and |s pr|mar||y based on the
fo||ow|ng or|ter|a .
Performanoe of the Company, |ts d|v|s|ons and un|ts.
Traok reoord, potent|a|, persona| att|tude & performanoe of |nd|v|dua| Manager and externa| oompet|t|ve env|ronment.
The remunerat|on po||oy of the Company |s |n ||ne w|th lndustry's praot|oe. The objeot|ve of the remunerat|on oomm|ttee |s to
mot|vate emp|oyees to exoe| |n the|r performanoe, reoogn|ze the|r oontr|but|on and to reta|n ta|ent |n the organ|zat|on.
Compos|t|on and Attendance
The Comm|ttee oompr|sed three Non-Exeout|ve oum lndependent D|reotors, Mr. Pankaj Shr|ma||, Cha|rman of the Comm|ttee,
Mr. S.K. Sapra and Mr. v|vek Kumar, members of the Comm|ttee. Dur|ng the f|nano|a| year 2011-12, no meet|ng of the
Comm|ttee was he|d.
4. DETAILS OF REMUNERATION TO DIRECTORS FOR THE FINANCIAL YEAR 2011-12
|) Executive Directors:-The Manag|ng D|reotor and Who|e-T|me D|reotors are pa|d remunerat|on as per the terms approved
by the Board of D|reotors of the Company and oonf|rmed by the Shareho|ders of the Company and subjeot to suoh other
statutory approva|s as may be neoessary. Deta||s of remunerat|on pa|d to the Exeout|ve D|reotors for the f|nano|a| year 2011-12
are as fo||ows.
Amount |n `)
Name of D|rectors Des|gnat|on Sa|ary Comm|ss|on Tota|
Mr. Pamesh Kumar Dua Manag|ng D|reotor 4200000 24189425 28389425
Mr. Mukand |a| Dua Who|e T|me D|reotor 4200000 24189425 28389425
Mr. N|kh|| Dua Who|e T|me D|reotor 3642000 --- 3642000
Mr. Pamesh Kumar Dua, Manag|ng D|reotor and Mr. Mukand |a| Dua, Who|e-t|me D|reotor of the Company were appo|nted
w|th effeot from 01.04.2009 for a per|od of f|ve years. Mr. N|kh|| Dua, Who|e-t|me D|reotor was appo|nted w|th effeot from
01.10.2010 for a per|od of three years. However, no one |s ent|t|ed for any k|nd of severanoe fees from the Company.
||) Non Execut|ve D|rectors: - The s|tt|ng fees pa|d to Non-Exeout|ve D|reotors for the f|nano|a| year 2011-12 was `60,000/-
to Mr. Pankaj Shr|ma||, `50,000/- to Mr. v|vek Kumar and `63,000/- to Mr. S.K. Sapra for attend|ng the meet|ngs
5. VENUE & TIME OF ANNUAL GENERAL MEETINGS
Year Venue No. of Spec|a|
Reso|ut|on
Day and Date T|me
2010-11 Sr| Sathya Sa| lnternat|ona| Centre, |odh| Poad,
lnst|tut|ona| Area, Pragat| v|har, New De|h|-110 003
- Tuesday, 20th September. 2011 10.30 a.m.
2009-10 -- do -- 5 Fr|day, 24
th
September. 2010 10.30 a.m.
2008-09 -- do -- - Fr|day, 25
th
September. 2009 10.30 a.m.
S. POSTAL BALLOT
There |s no reso|ut|on at the ensu|ng Annua| Genera| Meet|ng of the Company wh|oh |s requ|red to be passed through Posta| ba||ot
prooess.
7. DISCLOSURES
A. Re|ated Party Transact|ons
There were no mater|a||y s|gn|f|oant re|ated party transaot|ons w|th |ts Promoters, D|reotors or the Management, the|r
subs|d|ar|es or re|at|ves, eto. that may have potent|a| oonf||ot w|th the |nterests of the Company at |arge. A|| re|ated party
transaot|ons have been reported and forms part of the Notes to Aooounts of the Ba|anoe Sheet.
B. D|sc|osure of Account|ng Treatment
The Company has fo||owed a|| re|evant Aooount|ng Standards wh||e prepar|ng the F|nano|a| Statements.
C. Non-Comp||ance by the Company
There has not been any non-oomp||anoe by the Company and no pena|t|es or str|oture |mposed on the Company by Stook
Exohange, SEBl or any statutory author|ty, on any matter re|ated to oap|ta| markets, dur|ng the |ast three years. The Company
has oomp||ed w|th app||oab|e ru|es and regu|at|ons presor|bed by Stook Exohange, SEBl or any other statutory author|ty
re|at|ng to Cap|ta| Market.
22
A|| Peturns/Peports were f||ed w|th|n st|pu|ated t|me w|th
the Stook Exohanges / other author|t|es.
D. Comp||ance of C|ause 49 of L|st|ng Agreement
The Company has oomp||ed w|th the mandatory
requ|rements of C|ause 49 of the ||st|ng Agreement.
E. Non-mandatory requ|rement
The Company, at present, has adopted the non-
mandatory requ|rement w|th regard to oonst|tut|on of
Pemunerat|on Comm|ttee, wh|oh has been oonst|tuted
to determ|ne the remunerat|on paokage of Who|e-t|me
D|reotor and Sen|or Management Personne|.
F. Po||cy for Prevent|on of Ins|der Trad|ng
W|th a v|ew to prevent|ng trad|ng of shares of the
Company by an |ns|der on the bas|s of unpub||shed
pr|oe sens|t|ve |nformat|on, the Board has approved
Po||oy for Prevent|on of lns|der Trad|ng |n pursuanoe of
the Seour|t|es and Exohange Board of lnd|a Proh|b|t|on
of lns|der Trad|ng) Pegu|at|ons, 1992. Under the Po||oy,
|ns|ders are proh|b|ted to dea| |n the Company's shares
wh||e |n possess|on of unpub||shed pr|oe sens|t|ve
|nformat|on.
S. RECONCILIATION OF SHARE CAPITAL
A qua||f|ed Praot|o|ng Company Seoretary oarr|ed out
quarter|y exam|nat|on of Seoretar|a| Peoords to reoono||e
the tota| adm|tted share oap|ta| w|th Nat|ona| Seour|t|es
Depos|tory ||m|ted NSD|) and Centra| Depos|tory Serv|oes
lnd|a) ||m|ted CDS|) and the tota| |ssued and ||sted oap|ta|.
The aud|t oonf|rmed that the tota| |ssued /pa|d-up oap|ta| was
|n agreement w|th the aggregate of tota| number of shares |n
phys|oa| form and the tota| number of demater|a||zed shares
he|d w|th NSD| and CDS|.
9. CODE OF CONDUCT
The Company has |a|d down a Code of Conduot for a|| the
Board Members and Sen|or Management of the Company.
The Code of Conduot |s ava||ab|e on the web-s|te of the
Company www.re|axofootwear.oom. A|| Board Members and
Sen|or Management personne| have aff|rmed oomp||anoe
w|th Code of Conduot. A deo|arat|on s|gned by the Ch|ef
Exeout|ve Off|oer |s g|ven be|ow.
A|| the Board Members and Sen|or Management Personne|
have aff|rmed oomp||anoe w|th the prov|s|ons of the Code of
Conduot of Pe|axo Footwears ||m|ted |n the F|nano|a| Year
ended on 31
st
Maroh, 2012.
P|aoe . De|h| RAMESH KUMAR DUA
Dated . May 12, 2012 CEO & Manag|ng D|reotor
10. MEANS OF COMMUNICATION
The Company ensures t|me|y d|so|osure of a|| oorporate
f|nano|a| |nformat|on and other deta||s re|evant to the
Shareho|ders.
As per the ||st|ng Agreement w|th Bombay Stook Exohange
||m|ted and Nat|ona| Stook Exohange of lnd|a ||m|ted,
Quarter|y, Ha|f-year|y, N|ne Months and Annua| f|nano|a|
statements of the Company are genera||y pub||shed |n
F|nano|a| Express/Eoonom|o T|mes |n Eng||sh |anguage)
and |n Jansatta/ Navbharat T|mes |n H|nd| |anguage).
The f|nano|a| resu|ts of the Company for the Quarter, Ha|f
year|y, N|ne months and Who|e year are posted on webs|te of
the Company |. e re|axofootwear.oom w|th.
Fu|| vers|on of the Annua| Peport |no|ud|ng the Ba|anoe
Sheet, Prof|t and |oss Aooount, D|reotors' Peport and
Aud|tors' Peport, Cash F|ow Statement and Quarter|y
F|nano|a| Statements.
Shareho|d|ng Pattern.
11. GENERAL SHAREHOLDERS INFORMATION
1. Annua| Genera| Meet|ng
Date . 17.09.2012
T|me . 10.30 a.m.
venue . Sr| Sathya Sa| lnternat|ona| Centre |odh|
Poad, lnst|tut|ona| Area, Pragat| v|har, New
De|h|-110 003
2. F|nanc|a| Year
For the f|nano|a| year 2012-13, the resu|ts w||| be
announoed tentat|ve|y)
|ast week of
Ju|y, 2012
For F|rst Quarter ended on 30th June,
2012
|ast week of
Ootober, 2012
For Ha|f year ended on 30th
September, 2012
|ast week of
January, 2013
For Th|rd Quarter ended on 31
st

Deoember, 2012
|ast week of
May 2013
For Fourth Quarter & Year end as on
31
st
Maroh 2013
S. Book C|osure Date:
From 11
th
September, 2012 to 17
th
September, 2012 both
days |no|us|ve)
4. D|v|dend Payment Date:
On or before 16
th
Ootober, 2012 subjeot to the approva| of
the shareho|ders |n the AGM)
5. Reg|stered Off|ce:
316 - 319, A|||ed House, lnder|ok Chowk, O|d Pohtak Poad,
De|h|- 110 035
Te|.. 23658354, 46800700, Fax. 91-11-23658431, 23658773
S. L|st|ng on Stock Exchanges :
Nat|ona| Stook Exohange of lnd|a ||m|ted, Exohange
P|aza C-1, B|ook - G, Bandra-Kur|a Comp|ex, Bandra E)
Mumba|-400 051.
Stook Symbo| . NSE-PE|AXO
The annua| ||st|ng fee has been pa|d to NSE upto year 2012-13).
Bombay Stook Exohange ||m|ted,
Ph|rozee Jeejeebhoy Towers,
Da|a| Street, Mumba|-400 001.
Stook Code . BSE-530517.
The annua| ||st|ng fee has been pa|d to BSE upto year 2012-13)
The Company has a|so pa|d annua| oustody fee for the year
2012-13 to Nat|ona| Seour|t|es Depos|tory ||m|ted NSD|),
and Centra| Depos|tory Serv|oes lnd|a) ||m|ted CDS|)
23
7. Market Pr|ce Data
Tab|e show|ng month|y pr|oe movement on BSE dur|ng the F|nano|a| Year 2011-12
Month & Year H|gh (|n `) Low (|n `) C|ose (|n `) Market Cap|ta||sat|on
(` |n Lacs)
Apr|| 2011 298.90 252.20 281.45 33777.38
May 2011 284.90 239.00 239.90 28790.88
June 2011 300.00 241.30 299.60 35955.60
Ju|y 2011 334.00 279.95 295.50 35463.55
August 2011 324.00 255.00 320.00 38403.84
September 2011 441.00 302.30 439.75 52775.28
Ootober 2011 473.85 411.20 437.60 52517.25
November 2011 450.00 275.00 303.55 36429.64
Deoember 2011 316.00 235.00 239.50 28742.87
January 2012 324.00 235.05 277.25 33273.33
February 2012 380.00 285.00 323.35 38805.88
Maroh 2012 330.00 285.10 304.05 36489.65
Tab|e show|ng month|y pr|oe movement on NSE dur|ng the F|nano|a| Year 2011-12 Company shares were got ||sted on NSE |n
June 2011)
Month & Year H|gh (|n `) Low (|n `) C|ose (|n `) Market Cap|ta||sat|on
(` |n Lacs)
June 2011 302.00 257.00 299.75 35973.60
Ju|y 2011 300.00 300.00 300.00 36003.60
August 2011 325.00 300.10 319.95 38397.84
September 2011 444.90 425.15 439.95 52799.28
Ootober 2011 454.90 423.95 434.20 52109.21
November 2011 308.95 297.00 301.00 36123.61
Deoember 2011 273.95 230.05 241.20 28946.89
January 2012 293.00 265.00 290.15 34821.48
February 2012 336.90 316.65 320.15 38421.84
Maroh 2012 310.00 296.00 300.45 36057.61
S. Reg|strar and Transfer Agents: Seour|t|es Exohange Board of lnd|a SEBl), has made |t mandatory for a|| the ||sted Compan|es
that a|| the work re|at|ng to share transfer / reg|stry, both |n Phys|oa| and E|eotron|o form, to be hand|ed e|ther who||y |n house
by Compan|es or who||y by a SEBl reg|stered externa| Peg|strar and Transfer Agent. The Company has appo|nted M/s. Karvy
Computershare Pr|vate ||m|ted as the Peg|strar and Transfer Agent of the Company. Deta|| of the Peg|strar and Transfer Agent of
the Company |s g|ven be|ow.-
M/S. KAPvY COMPUTEPSHAPE PPlvATE |lMlTED
17-24, v|tta| Pao Nagar
Madhapur-Hyderabad, Andhra Pradesh - 500 081, lnd|a
Ema|| . mahender.s|ngh@karvy.oom
9. Share Transfer System
The request regard|ng phys|oa| share transfers and share oert|f|oates shou|d be addressed to Peg|strar and Transfer Agent. Suoh
requests are prooessed w|th|n st|pu|ated t|me from the date of reoe|pt prov|ded doouments meet the st|pu|ated requ|rement of
statutory prov|s|ons |n a|| respeot. The share oert|f|oate du|y endorsed are returned |mmed|ate|y to the shareho|der by PTA. The
deta||s of transfer and transm|ss|on are p|aoed before the Shareho|ders/lnvestors Gr|evanoe and Share Transfer Comm|ttee from
t|me to t|me and the Board for not|ng and oonf|rmat|on.
Pursuant to C|ause 47o) of the ||st|ng Agreement w|th the Stook Exohanges, Cert|f|oate on ha|f year|y bas|s oonf|rm|ng due
oomp||anoe w|th Share Transfer forma||t|es by the Company and Cert|f|oate for t|me|y demater|a||zat|on of shares as per SEBl
Depos|tor|es and Part|o|pants) Pegu|at|ons, 1996, have been subm|tted to stook exohange.
24
10. D|str|but|on Pattern as on S1
st
March, 2012
|) Shareho|d|ng pattern (|n form of s|ze) :
Sr.
No.
No. of Equ|ty
Shares he|d
No. of
Shareho|ders
% of tota|
Shareho|ders
No. of
Shares he|d
% of
tota| Shares
1 1 - 500 2312 90.60 229341 1.91
2 501 - 1000 115 4.51 91932 0.77
3 1001 - 2000 46 1.80 68360 0.57
4 2001 - 3000 18 0.71 44654 0.37
5 3001 - 4000 8 0.31 29523 0.25
6 4001 - 5000 9 0.35 42019 0.35
7 5001 - 10000 14 0.55 106840 0.89
8 10001 and above 30 1.17 11388531 94.89
TOTAL 2552 100.00 12001200 100.00
||) Shareho|d|ng pattern (|n form of Ownersh|p Category) :
Sr.
No.
Category No. of
Shareho|ders
% of tota|
Shareho|ders
No. of
Shares he|d
% of
tota| Shares
1 Promoters 12 0.47 9000900 75.00
2 Bod|es oorporates 117 4.58 1867596 15.56
3 Pes|dent |nd|v|dua|s 2336 91.54 895036 7.46
4 H U F 43 1.69 14656 0.12
5 C|ear|ng Members 9 0.35 802 0.01
6 Non-res|dent lnd|ans 33 1.29 22210 0.19
7 Fore|gn lnst|tut|ona| lnvestors 2 0.08 200000 1.66
Tota| 2552 100.00 12001200 100.00
11. Demater|a||zat|on of Shares
The shares of the Company are under oompu|sory Demat Soheme. For the purpose of demater|a||zat|on of the shares, the
Company has entered |nto the Agreements w|th two Depos|tor|es.
1 Nat|ona| Seour|t|es Depos|tory ||m|ted NSD|)
2 Centra| Depos|tory Serv|oes ||m|ted CDS|)
The deta||s of shares of the Company |n demat and phys|oa| forms |s g|ven be|ow.-
DEMATERALISATION OF SHARES AS ON S1.S.2012
Part|cu|ars No. of Shares % of Pa|d up Cap|ta| No. of Shareho|ders
1. Nat|ona| Seour|t|es Depos|tory ||m|ted 11674379 97.27 1480
2. Centra| Depos|tory Serv|oes lnd|a) |td 152136 1.27 581
SHAPES lN DEMAT FOPM 11826515 98.54 2061
SHAPES lN PHYSlCA| FOPM 174685 1.46 491
Tota| 12001200 100.00 2552
12. Investors Correspondence
A|| enqu|r|es, o|ar|f|oat|ons and oorrespondenoe shou|d be addressed to the Comp||anoe Off|oer at the fo||ow|ng address.
CS Kap|| Garg, Company Seoretary & Comp||anoe Off|oer,
Pe|axo Footwears ||m|ted
316-319, A|||ed House, lnder|ok Chowk, O|d Pohtak Poad, De|h|-110 035
E-ma||. kap||garg@re|axofootwear.oom
25
The Company addresses a|| oomp|a|nts, suggest|ons, gr|evanoes and other oorrespondenoe exped|t|ous|y and rep||es are sent
usua||y w|th|n 7-10 days exoept |n oase of other |mped|ments. The Company endeavours to |mp|ement suggest|ons as and when
reoe|ved from the |nvestors. Dur|ng the year under rev|ew, a tota| of 49 |nvestors oomp|a|nts were reoe|ved and reso|ved.
1S. Corporate Ident|ty Number (CIN) : L74S99DL19S4PLC019097
14. Per Share Data
Part|cu|ars 2011-12 2010-11 2009-10 200S-09 2007-0S 200S-07 2005-0S
Net Earn|ng ` |n |aos) 3990.50 2671.31 3769.22 1423.23 1052.41 611.95 328.85
Cash Earn|ng ` |n |aos) 7662.94 5649.91 6924.80 3485.36 2608.26 1902.72 1190.85
EPS |n `) 33.25 22.26 31.41 11.86 8.77 5.10 2.72
CEPS |n `) 63.85 47.08 57.70 29.04 21.74 15.86 9.92
D|v|dend |no|ud|ng lnter|m
D|v|dend per share) |n `)
1.50 1.50 1.50 0.75 0.75 0.75 0.75
D|v|dend Pay out %) 4.51 6.74 4.78 6.32 8.55 14.70 27.57
Book va|ue Per Share |n `) 143.68 112.18 91.60 61.63 50.64 42.76 38.30
Faoe va|ue Per Share |n `) 5.00 5.00 5.00 5.00 5.00 5.00 5.00
15. There was no outstand|ng ADPs/GDPs/Warrants or any other oonvert|b|e |nstruments, oonvers|ons date and ||ke|y |mpaot on
equ|ty dur|ng the year under rev|ew.
1S. Transfer of unc|a|med amount to Investor Educat|on and Protect|on Fund (IEPF)
Pursuant to the prov|s|ons of Seot|on 205-A of the Compan|es Aot, 1956, the d|v|dend deo|ared by the Company wh|oh rema|n
uno|a|med for a per|od of seven years sha|| be transferred by the Company to lnvestor Eduoat|on and Proteot|on Fund estab||shed
by the Centra| Government under seot|on 205 C of the Compan|es Aot, 1956 read w|th the lnvestors Eduoat|on and Proteot|on
Fund Awareness and Proteot|on of lnvestors) Pu|e, 2001.
Dur|ng the year under rev|ew, the Company has depos|ted a sum of `313/- to the lnvestor Eduoat|on and Proteot|on Fund |n
respeot of unpa|d d|v|dend of year ended on 31.03.2004.
17. Other usefu| |nformat|on for the shareho|ders:
|) Equ|ty Shares of the Company are under oompu|sory demat trad|ng. To ava|| the advantage of sor|p|ess trad|ng, Shareho|ders
are adv|sed to oons|der demater|a||zat|on of the|r shareho|d|ng so as to avo|d |noonven|enoe |n future.
||) Members/Benef|o|a| owners are requested to quote the|r Fo||o No./ D.P. & C||ent lD Nos. as the oase may be, |n a||
oorrespondenoe w|th the Company.
|||) ln oase of |oss/m|sp|aoement of shares, a oomp||ant sha|| be |odged w|th the Po||oe Stat|on and an |nt|mat|on sha|| be sent to
the Company a|ong w|th or|g|na| or oert|f|ed oopy of FlP/aoknow|edgement of the Comp|a|nt.
|v) Benef|o|a| owners of shares, |n demat form, are adv|sed that |n terms of the Pegu|at|ons of NSD| & CDS|, the|r Bank Aooount
deta||s, as furn|shed to the Depos|tory Part|o|pants DP)) w||| be pr|nted on the|r D|v|dend Warrants. The Company w||| not
enterta|n requests for ohange of suoh bank deta||s pr|nted on the|r d|v|ded warrants.
v) Members ho|d|ng shares |n phys|oa| form, are requested to not|fy to the Company, ohange |n the|r Address/P|n Code Number
and Bank Aooount deta||s prompt|y.
v|) Benef|o|a| owners of shares |n demat form, are requested to send the|r |nstruot|ons regard|ng ohange of address, bank deta||s,
nom|nat|on, power of attorney eto. d|reot|y to the|r DP as the same are ma|nta|ned by them.
v||) Seot|on 109A of Compan|es Aot, 1956 extends nom|nat|on fao|||ty to |nd|v|dua|s ho|d|ng shares |n phys|oa| from |n Compan|es.
Members, |n part|ou|ars those ho|d|ng shares |n s|ng|e name, may ava|| of the above fao|||ty by furn|sh|ng the part|ou|ars of the|r
nom|nat|on |n the presor|bed Nom|nat|on form.
For and on beha|f of the Board of D|reotors
P|aoe . De|h| RAMESH KUMAR DUA MUKAND LAL DUA
Date . May 12, 2012 Manag|ng D|reotor Who|e T|me D|reotor
26
CEO/CFO CERTIFICATION
To
The Board of D|rectors
Re|axo Footwears L|m|ted
SUB: CEO/CFO Cert|f|cat|on
We Pamesh Kumar Dua, Ch|ef Exeout|ve Off|oer and Manag|ng D|reotor and Sush|| Batra, Ch|ef F|nano|a| Off|oer of Pe|axo Footwears
||m|ted, Cert|fy that-
1. We have rev|ewed f|nano|a| statements and the oash f|ow statements for the f|nano|a| year ended on 31st Maroh, 2012.
2. To the best of our know|edge and |nformat|on-
|) these statements do not oonta|n any untrue statement or om|t any mater|a| faot or oonta|n statements that m|ght be m|s|ead|ng.
||) these statements together present a true and fa|r v|ew of the Company's affa|rs and are |n oomp||anoe w|th ex|st|ng aooount|ng
standards, app||oab|e |aws and regu|at|ons.
3. There are, to the best of our know|edge and be||ef, no transaot|ons, entered |nto by the Company dur|ng the year wh|oh are
fraudu|ent, |||ega| or v|o|at|ve of the Company's oode of oonduot.
4. We aooept respons|b|||ty for estab||sh|ng and ma|nta|n|ng |nterna| oontro|s for f|nano|a| report|ng and we have eva|uated the
effeot|veness of |nterna| oontro| systems of the Company perta|n|ng to f|nano|a| report|ng and we have d|so|osed to the aud|tors
and the Aud|t Comm|ttee, def|o|eno|es |n des|gn or operat|on of suoh |nterna| oontro|s, |f any, of wh|oh we are aware and the steps
we have taken or propose to take to reot|fy these def|o|eno|es.
5. We have |nd|oated to the aud|tors and the Aud|t Comm|ttee.
|. S|gn|f|oant ohanges |n |nterna| oontro| over f|nano|a| report|ng dur|ng the year, |f any.
||. S|gn|f|oant ohanges |n aooount|ng po||o|es dur|ng the year and that the same have been d|so|osed |n the notes to the f|nano|a|
statements, |f any, and
|||. lnstanoes of fraud, whether or not s|gn|f|oant, of wh|oh we have beoome aware and the |nvo|vement thereto, |f any, of the
management or an emp|oyee hav|ng a s|gn|f|oant ro|e |n the Company's |nterna| oontro| system over f|nano|a| report|ng.
RAMESH KUMAR DUA SUSHIL BATRA
Ch|ef Exeout|ve Off|oer and Ch|ef F|nano|a| Off|oer
Manag|ng D|reotor
P|aoe . De|h|
Date . May 12, 2012
27
AUDITOR'S CERTIFICATE
ON CORPORATE GOVERNANCE
TO THE MEMBERS OF
We have exam|ned the oomp||anoe of oond|t|ons of Corporate Governanoe by PE|AXO FOOTWEAPS |lMlTED for the year ended on
31st Maroh, 2012, as st|pu|ated |n C|ause 49 of the ||st|ng Agreement of the sa|d oompany w|th the Stook Exohanges |n lnd|a.
The oomp||anoe of oond|t|ons of Corporate Governanoe |s the respons|b|||ty of the Management. Our exam|nat|on was ||m|ted to
prooedures and |mp|ementat|on thereof, adopted by the Company for ensur|ng the oomp||anoe of the oond|t|on of the Corporate
Governanoe. lt |s ne|ther an aud|t nor an express|on of op|n|on on the f|nano|a| statements of the Company.
ln our op|n|on and to the best of our |nformat|on and aooord|ng to the exp|anat|ons g|ven to us, we oert|fy that the Company has
oomp||ed w|th the oond|t|ons of Corporate Governanoe as st|pu|ated |n o|ause 49 of the ||st|ng Agreement.
We state that no |nvestor gr|evanoe |s pend|ng for a per|od exoeed|ng one month aga|nst the Company as per the reoords ma|nta|ned
by Shareho|ders'/lnvestors' Gr|evanoe and share transfer Comm|ttee.
We further state that suoh oomp||anoe |s ne|ther an assuranoe as to future v|ab|||ty of the Company nor eff|o|enoy or the effeot|veness
w|th wh|oh the Management has oonduoted the affa|rs of the Company.
FOP GUPTA & DUA
Chartered Aooountants
Peg|strat|on NO. 003849N)
P|aoe . De|h| C.A MUKESH DUA
Dated . May 12, 2012 Partner
M.NO. 085323
28
AUDITORS' REPORT
TO THE MEMBERS OF
We have aud|ted the attaohed Ba|anoe Sheet of PE|AXO
FOOTWEAPS |lMlTED as at 31st Maroh, 2012, the statement of
Prof|t and |oss and the Cash F|ow Statement for the per|od ended
on that date annexed thereto. These f|nano|a| statements are the
respons|b|||ty of the Company's Management. Our respons|b|||ty
|s to express an op|n|on on these f|nano|a| statements based on
our aud|t.
1. We oonduoted our aud|t |n aooordanoe w|th aud|t|ng
standards genera||y aooepted |n lnd|a. Those standards
requ|re that we p|an and perform the aud|t to obta|n reasonab|e
assuranoe about whether the f|nano|a| statements are free of
mater|a| m|sstatement. An aud|t |no|udes exam|n|ng, on a test
bas|s, ev|denoe support|ng the amounts and d|so|osures |n
f|nano|a| statements. An aud|t a|so |no|udes assess|ng the
aooount|ng pr|no|p|es used and s|gn|f|oant est|mates made
by the Management, as we|| as eva|uat|ng the overa|| f|nano|a|
statement presentat|on. We be||eve that our aud|t prov|des a
reasonab|e bas|s for our op|n|on.
2. As requ|red by the Compan|es Aud|tors Peport) Order,
2003 as amended) |ssued by the Centra| Government
of lnd|a |n terms of sub seot|on 4A) of seot|on 227 of the
Compan|es Aot, 1956, we eno|ose |n the Annexure hereto a
statement on the matters speo|f|ed |n paragraphs 4 and 5 of
the sa|d Order.
3. Further to our oomments |n the annexure referred to |n
paragraph 2 above, we report that .
a) We have obta|ned a|| the |nformat|on and exp|anat|ons
wh|oh to the best of our know|edge and be||ef were
neoessary for the purposes of our aud|t ,
b) ln our op|n|on, proper books of aooount, as requ|red
by |aw, have been kept by the Company, so far as |t
appears from our exam|nat|on of suoh books ,
o) The Ba|anoe Sheet, statement of Prof|t and |oss and
Cash F|ow Statement dea|t w|th by th|s report are |n
agreement w|th the books of aooount ,
d) ln our op|n|on, the Ba|anoe Sheet, statement of Prof|t &
|oss and Cash F|ow Statement dea|t w|th by th|s report
oomp|y w|th the mandatory Aooount|ng Standards
referred |n sub-seot|on 3C) of seot|on 211 of the
Compan|es Aot, 1956 ,
e) On the bas|s of the wr|tten representat|ons reoe|ved
from the D|reotors as on 31st Maroh, 2012 and taken
on reoord by the Board of D|reotors, we report that none
of the D|reotors |s d|squa||f|ed as on 31st Maroh, 2011
from be|ng appo|nted as a D|reotor |n terms of o|ause g)
of sub-seot|on 1) of Seot|on 274 of the Compan|es Aot,
1956 ,
f) ln our op|n|on and to the best of our |nformat|on and
aooord|ng to the exp|anat|ons g|ven to us, the sa|d
f|nano|a| statements, read together w|th the s|gn|f|oant
aooount|ng po||o|es and notes thereon g|ven |n Note
27 g|ve the |nformat|on requ|red by the Compan|es Aot,
1956 |n the manner so requ|red and present a true and
fa|r v|ew, |n oonform|ty w|th the aooount|ng pr|no|p|es
genera||y aooepted |n lnd|a ,
|) |n so far as |t re|ates to the Ba|anoe Sheet, of the
state of affa|rs of the Company as at 31st Maroh,
2012,
||) |n so far as |t re|ates to the statement of Prof|t and
|oss, of the prof|t of the Company for the year
ended on that date, and
|||) |n so far as |t re|ates to the Cash F|ow Statement, of
the oash f|ows of the Company for the year ended
on that date.
FOP GUPTA & DUA
Peg|strat|on NO. 003849N)
M.NO. 085323
29
ANNEXURE TO THE AUDITORS' REPORT OF RELAXO
FOOTWEARS LIMITED FOR THE PERIOD ENDED S1ST
MARCH, 2012 (REFERRED TO IN PARAGRAPH 2 OF OUR
REPORT OF EVEN DATE)
1) ln respeot of |ts f|xed assets .
a) The Company has ma|nta|ned proper reoords show|ng
fu|| part|ou|ars |no|ud|ng quant|tat|ve deta||s and s|tuat|on
of f|xed assets.
b) As exp|a|ned to us, the f|xed assets have been phys|oa||y
ver|f|ed by the Management at a|| |ooat|ons at reasonab|e
|nterva|s. No mater|a| d|sorepano|es between book
reoords and the phys|oa| |nventor|es have been not|oed
on suoh ver|f|oat|on.
o) ln our op|n|on, the oompany has not d|sposed off any
substant|a| / major part of |ts f|xed assets dur|ng the year
and the go|ng oonoern status of the oompany |s not
affeoted.
2) ln respeot of |ts |nventor|es .
a) As exp|a|ned to us, |nventor|es were phys|oa||y ver|f|ed
by the management at reasonab|e |nterva|s dur|ng the
year.
b) ln our op|n|on and aooord|ng to the |nformat|on and
exp|anat|ons g|ven to us, the prooedures of phys|oa|
ver|f|oat|on of |nventor|es fo||owed by the management
are reasonab|e and adequate |n re|at|on to the s|ze of the
Company and the nature of |ts bus|ness.
o) ln our op|n|on and aooord|ng to the |nformat|on and
exp|anat|ons g|ven to us, the Company has ma|nta|ned
proper reoords of |ts |nventor|es. As exp|a|ned to us,
no mater|a| d|sorepano|es were not|oed on phys|oa|
ver|f|oat|on of |nventor|es as oompared to the book
reoords.
3) ln respeot of |oans, seoured or unseoured, granted or taken
by the Company to/from Compan|es, f|rms or other part|es
oovered |n the reg|ster ma|nta|ned under seot|on 301 of the
Compan|es Aot, 1956 .
a) The Company has taken unseoured |oan from a party.
ln respeot of the sa|d |oan, the max|mum amount
outstand|ng at any t|me dur|ng the year was `901.60
|aos and the year end ba|anoe |s `901.60 |aos.
b) ln our op|n|on and aooord|ng to the |nformat|on and
exp|anat|ons g|ven to us, the rate of |nterest and other
terms and oond|t|ons, are not pr|ma fao|e prejud|o|a| to
the |nterest of the oompany.
o) The Company |s regu|ar |n pay|ng the pr|no|pa| amounts
as st|pu|ated and have been regu|ar |n payment of
|nterest |n respeot of |oans referred to |n a) above.
d) There |s no overdue amount of |oans taken as referred to
|n a) above.
e) The oompany has not granted any |oan, to oompan|es,
f|rms or other part|es oovered |n the reg|ster ma|nta|ned
under seot|on 301 of the Company Aot, 1956.
4) ln our op|n|on and aooord|ng to the |nformat|on and
exp|anat|ons g|ven to us, there are adequate |nterna| oontro|
prooedures oommensurate w|th the s|ze of the Company
and the nature of |ts bus|ness, for the purohase of |nventory
and f|xed assets and for the sa|e of goods and serv|oes.
Dur|ng the oourse of our aud|t, no major weaknesses have
been not|oed |n the |nterna| oontro|.
5) ln respeot of oontraots or arrangements that need to be
entered |n the reg|ster ma|nta|ned |n pursuanoe of seot|on
301 of the Compan|es Aot, 1956.
a) To the best of our know|edge and be||ef and aooord|ng to
the |nformat|on and exp|anat|ons g|ven to us, part|ou|ars
of oontraots or arrangements, as the oase may be,
that need to be entered |nto the reg|ster have been so
entered.
b) Aooord|ng to the |nformat|on and exp|anat|ons g|ven to
us, the transaot|ons made |n pursuanoe of suoh oontraots
or arrangements, as the oase may be, exoeed|ng the
va|ue of ` f|ve |aos |n respeot of eaoh party dur|ng the
year have been made at pr|oes wh|oh are pr|ma fao|e
reasonab|e hav|ng regard to the preva|||ng market pr|oes
at the re|evant t|me and as per |nformat|on ava||ab|e w|th
the Company.
6) ln our op|n|on and aooord|ng to the |nformat|on and
exp|anat|ons g|ven to us, the Company has not aooepted
any depos|t w|th|n the mean|ng of Seot|on 58 A and Seot|on
58AA of the Compan|es Aot, 1956.
7) ln our op|n|on, the oompany has an |nterna| aud|t system
oommensurate w|th the s|ze and nature of |ts bus|ness.
8) On the bas|s of the |nformat|on and exp|anat|on prov|ded
to us, we are of the op|n|on that pr|ma fao|e oost reoords
and aooounts presor|bed by the Centra| Government under
seot|on 209 1) d) of the Compan|es Aot, 1956 |n respeot of
produots of the oompany oovered under the ru|es under sa|d
seot|on have been ma|nta|ned. However, we have not made a
deta||ed exam|nat|on of the reoords w|th a v|ew to determ|ne
whether they are aoourate or oomp|ete.
9) ln respeot of statutory dues .-
a) Aooord|ng to the reoords of the oompany, und|sputed
statutory dues |no|ud|ng Prov|dent Fund, lnvestor
Eduoat|on and Proteot|on Fund, Emp|oyees State
lnsuranoe, lnoome Tax, Sa|es Tax, Wea|th Tax, Serv|oe
Tax, Customs Duty, Exo|se Duty, Cess and other
statutory dues have been genera||y regu|ar|y depos|ted
30
annual RepoRt 2011-12
with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March, 2012 for a period of more than six months from the date
of becoming payable
b) The disputed statutory dues aggregating `1509.35 lacs that have not been deposited on account of matters pending before
appropriate authorities are as under :-
S.
No.
Name of the Statute Name of the Dues Forum where dispute is pending Amount
(` in lacs)
1. Haryana General Sales
Tax Act, 1973
Purchase Tax A.Y. 2001-02
2002-03
Jt. Excise & Taxation Commissioner
Jt. Excise & Taxation Commissioner
19.92
14.73
2. Punjab Value Added
Tax, 2005
VAT A.Y. 2008-09 Deputy Excise & Taxation Commissioner 2.19
3. Delhi Value Added Tax,
2005
Input Tax A.Y. 2005-06 Appellate Tribunal, Delhi 3.45
4. U.P. Sales Tax, Act Sales Tax A.Y. 2006-07 Asstt. Commissioner of Commercial Tax,
Ghaziabad, UP
0.72
5. Rajasthan Entry Tax Entry Tax A.Y. 2007-08
2008-09
2009-10
2010-11
2011-12
High Court, Jodhpur
High Court, Jodhpur
High Court, Jodhpur
High Court, Jodhpur
High Court, Jodhpur
1.76
1.81
0.24
1.05
1.41
6. Haryana local area dev.
Tax and entry tax
Entry Tax A.Y. 2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Supreme Court of India
17.79
173.02
208.85
295.78
307.54
427.42
7. Income Tax Act,1961 Regular Assessment
A.Y. 2009-10
A.Y. 2010-11
TDS A.Y. 2007-08
2008-09
2009-10
2010-11
2011-12
Commissioner of Income Tax (Appeals)
15.51
1.80
0.14
4.64
2.29
0.61
1.53
8. The Employees State
Insurance Corporation
Act,1948
2011-12 District Court , Rohtak 5.15
Total 1509.35
10) The Company has no accumulated losses at the end of
financial year and has not incurred cash losses during the
financial year covered by our audit and in the immediately
preceding financial year.
11) Based on the audit procedures and on the basis of
information and explanations given by the management, we
are of the opinion that the company has not defaulted in the
repayment of dues to any financial institution and banks.
12) According to the information and explanations given to us,
the company has not granted any loans and advances on
the basis of security by way of pledge of shares, debentures
and others securities.
13) In our opinion, the company is not a chit fund / a nidhi /
mutual benefit fund / society. Therefore, clause (xiii) of
paragraph 4 of the Companies (Auditor's Report) Order 2003
(as amended) is not applicable to the Company.
14) The company is not dealing or trading in shares, securities,
debentures and other investments; therefore requirement
of maintenance of proper records of such transaction and
contracts does not arise.
15) According to information and explanations given to us, the
company has not given any guarantee for loans taken by
others from banks or financial institutions.
31
16) ln our op|n|on the term |oan has been ut|||zed for the purposes
for wh|oh the same was ra|sed.
17) Aooord|ng to the oash f|ow statement and other reoords
exam|ned by us and aooord|ng to the |nformat|on and
exp|anat|ons g|ven to us, on an overa|| bas|s, funds ra|sed on
short term bas|s have, pr|ma fao|e, not been used dur|ng the
year for |ong term |nvestment.
18) Dur|ng the year, the Company has not made any preferent|a|
a||otment of shares to part|es and oompan|es oovered |n the
reg|ster ma|nta|ned under Seot|on 301 of the Compan|es Aot,
1956.
19) The oompany has not |ssued debentures and therefore the
quest|on of seour|t|es or oharge to be oreated |n respeot of
debenture does not ar|se.
20) The Company has not ra|sed any money by way of pub||o
|ssue dur|ng the year.
21) To the best of our know|edge and be||ef and aooord|ng to the
|nformat|on and exp|anat|ons g|ven to us, no fraud on or by
the Company was not|oed or reported dur|ng the year that
oauses the f|nano|a| statements to be mater|a||y m|sstated.
FOP GUPTA & DUA
Peg|strat|on No. 003849N)
M.NO. 085323
32
BALANCE SHEET
AS AT 31
ST
MARCH, 2012
` |n |aos)
Part|cu|ars Note No.
As at
S1.0S.2012
As at
S1.0S.2011
EQUITY AND LIABILITIES
SHAREHOLDERS' FUNDS
Share Cap|ta| 1 600.06 600.06
Peserves and Surp|us 2 16643.49 12862.21
NON CURRENT LIABILITIES
|ong-Term Borrow|ngs 3 9254.27 9636.05
Deferred Tax ||ab|||t|es Net) 4 2200.77 2228.91
|ong-Term Prov|s|ons 5 316.04 229.53
Other |ong term ||ab|||t|es 6 44.71 16.18
11815.79 12110.67
CURRENT LIABILITIES
Short-Term Borrow|ngs 7 5297.48 6011.58
Trade Payab|es 8 4207.64 5319.21
Other Current ||ab|||t|es 9 7481.10 6099.95
Short-Term Prov|s|ons 10 1424.51 915.75
18410.73 18346.49
TOTAL 47470.07 4S919.4S
ASSETS
NON CURRENT ASSETS
FIXED ASSETS : 11
Tang|b|e Assets 26795.97 26474.61
lntang|b|e Assets 338.16 368.12
Cap|ta| work-|n-progress 2102.45 52.75
lntang|b|e assets under deve|opment 24.06 30.79
29260.64 26926.27
Non Current lnvestments 12 6.11 6.11
|ong-Term |oans and Advanoes 13 1157.70 1137.33
Other Non-Current Assets 14 114.37 1.55
1278.18 1144.99
CURRENT ASSETS
lnventor|es 15 12849.69 11658.91
Trade Peoe|vab|es 16 2298.90 2324.31
Cash and oash equ|va|ents 17 102.38 213.95
Short-Term |oans and Advanoes 18 1459.43 1566.78
Other Current Assets 19 220.85 84.22
16931.25 15848.17
TOTAL 47470.07 4S919.4S
S|gn|f|oant Aooount|ng Po||o|es and Add|t|ona| Notes on Aooounts 27
Notes referred to above form an |ntegra| part of the F|nano|a| Statements
As per our report of even date
FOR GUPTA & DUA
CA. MUKESH DUA RAMESH KUMAR DUA
Partner Manag|ng D|reotor
M.No. 085323
P|aoe . De|h| SUSHIL BATRA KAPIL GARG MUKAND LAL DUA
Dated . May 12, 2012 Ch|ef F|nano|a| Off|oer Company Seoretary Who|e T|me D|reotor
33
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31
ST
MARCH 2012
` |n |aos)
Part|cu|ars Note No. 2011-12 2010-11
REVENUE
Pevenue from Operat|ons Gross) 20 86537.64 69216.08
|ess. Exo|se Duty 70.23 55.31
Pevenue from Operat|ons Net) 86467.41 69160.77
Other lnoome 21 105.79 52.43
TOTAL 86573.20 69213.20
EXPENDITURE
Cost of Mater|a|s Consumed 38714.08 34013.89
Purohases of Stook-|n-Trade 8059.11 7283.34
Changes |n lnventor|es of F|n|shed Goods,
Work-|n-Progress and Stook-|n-Trade 22 851.49) 3733.98)
Emp|oyee Benef|ts Expense 23 10620.49 7448.09
Se|||ng and D|str|but|on Expenses 24 10658.38 9423.12
F|nanoe Costs 25 1867.18 1590.85
Depreo|at|on and Amort|zat|on Expense 2310.29 2095.48
Other Expenses 26 9842.51 7537.98
TOTAL S1220.55 S5S5S.77
Prof|t before Exoept|ona| and Extraord|nary |tems and Tax 5352.65 3554.43
Exoept|ona| ltems - -
Prof|t before Extraord|nary ltems and Tax 5352.65 3554.43
Extra Ord|nary ltems |refer Note 27B13)| 3.83) -
Profit before Tax 5348.82 3554.43
Tax Expense.
Current tax 1077.17 709.31
Add / |ess) . MAT Cred|t 312.83 211.62)
Net Current Tax 1390.00 497.69
Deferred Tax 28.14) 385.48
Tax for Ear||er Years Net) 3.54) 0.05)
Prof|t after Tax 3990.50 2671.31
Add / |ess) Pr|or per|od adjustments Net) - 7.73
Prof|t for the year 3990.50 2679.04
Bas|o & D||uted Earn|ngs Per Equ|ty Share of `5 eaoh |refer
Note 27B9)|
33.25 22.26
S|gn|f|oant Aooount|ng Po||o|es and Add|t|ona| Notes on Aooounts 27
Notes referred to above form an |ntegra| part of the F|nano|a| Statements
FOR GUPTA & DUA
M.No. 085323
34
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31
ST
MARCH 2012
` |n |aos)
S.No. Part|cu|ars 2011-12 2010-11
A. CASH FLOW FROM OPERATINGWS :
PROFIT BEFORE TAX AND EXTRA-ORDINARY ITEMS 5S52.S5 S554.4S
ADJUSTMENTS FOR
Depreo|at|on 2310.29 2095.48
F|nanoe oosts 1867.18 1590.85
lnterest reoe|ved 5.54) 4.22)
Pr|or Per|od adjustment - 7.73
Prof|t)/|oss on sa|e of Assets 61.14 43.07
Operat|ng Prof|t before extra-ord|nary |tems 9585.72 7287.34
Extraord|nary ltems 3.83) -
Operating Profit before working capital changes 95S1.S9 72S7.S4
ADJUSTMENTS FOR
Trade reoe|vab|es and other assets 246.63) 637.21
lnventor|es 1153.06) 4942.51)
lnoome Tax 893.18) 832.53)
Trade Payab|es and other ||ab|||t|es 20.67) 2220.87
Net cash flow from operating activities 72SS.S5 4S70.SS
B. CASH FLOW FROM INVESTING ACTIVITIES :
Purohase of F|xed Assets 4882.82) 6265.80)
F|xed Assets so|d / d|soarded 177.02 7.63
lnterest reoe|ved 5.54 4.22
Net Cash used in investing activities (4700.2S) (S25S.95)
C. CASH FLOW FROM FINANCING ACTIVITIES
Prooeeds from borrow|ngs Net of repayments) 673.65) 3798.79
D|v|dend pa|d 138.83) 209.28)
F|nanoe oosts 1867.18) 1590.85)
Net cash from F|nanc|ng act|v|t|es (2S79.SS) 199S.SS
Net |norease |n oash & oash equ|va|ents 111.57) 115.09
Cash & oash equ|va|ents at the -beg|nn|ng of the year 213.95 98.86
Cash & cash equ|va|ents at the -end of the year 102.SS 21S.95
FOR GUPTA & DUA
M.No. 085323
35
NOTES FORMING PART
OF FINANCIAL STATEMENTS
NOTE 1 SHARE CAPITAL
` |n |aos)
Part|cu|ars
As at
S1.0S.2012
As at
S1.0S.2011
AUTHORISED CAPITAL
2,00,00, 000 Equ|ty Shares of `5/- eaoh 1000.00 1000.00
ISSUED, SUBSCRIBED AND PAID UP
1,20,01,200 Equ|ty Shares of `5/- eaoh fu||y Pa|d 600.06 600.06
- There |s no ohange |n the Shares Outstand|ng at the beg|nn|ng and at the end of the Year.
- The number of Shares he|d by eaoh shareho|der ho|d|ng more than 5% shares are g|ven be|ow .
As at S1.0S.2012 As at S1.0S.2011
Name of Shareho|der Number of Shares he|d & % Number of Shares he|d & %
Pamesh Kumar Dua 3147315 26.23% 3147315 26.23%
Mukand |a| Dua 2677070 22.31% 2677070 22.31%
v|S F|nanoe ||m|ted 875776 7.30% 950776 7.92%
The oompany has on|y one o|ass of equ|ty shares hav|ng a par va|ue of `5 per share. Eaoh ho|der of equ|ty share |s ent|t|ed to one
vote per share. The d|v|dend proposed by the Board of D|reotors |s subjeot to the approva| of the shareho|ders |n the ensu|ng Annua|
Genera| Meet|ng.
ln the event of ||qu|dat|on of the oompany, the ho|ders of equ|ty shares w||| be ent|t|ed to reoe|ve rema|n|ng assets of the oompany |n
proport|on to the|r number of equ|ty shares after d|str|but|on of a|| preferent|a| amounts.
The Equ|ty Shares of the Company are ||sted at Bombay Stook Exohange ||m|ted and Nat|ona| Stook Exohange of lnd|a ||m|ted. The
Annua| ||st|ng fee has been pa|d for the year.
NOTE 2 RESERVES & SURPLUS
Cap|ta| Reserve
As per |ast Ba|anoe Sheet 45.36 45.36
Share Prem|um Account
As per |ast Ba|anoe Sheet 73.94 73.94
Genera| Reserve
Open|ng Ba|anoe 12413.74 9413.74
Transfer from Surp|us ba|anoe |n Statement of Prof|t & |oss 3500.00 3000.00
C|os|ng Ba|anoe 15913.74 12413.74
Surp|us ba|ance |n the Statement of Prof|t and Loss
Open|ng Ba|anoe 329.17 859.59
Transfer from Statement of Prof|t and |oss 3990.50 2679.04
|ess . Transfer to Genera| Peserve 3500.00 3000.00
Proposed F|na| D|v|dend on Equ|ty Shares 180.02 120.01
Tax on Proposed F|na| D|v|dend 29.20 19.47
lnter|m D|v|dend on Equ|ty Shares - 60.01
Tax on lnter|m D|v|dend - 9.97
C|os|ng Ba|anoe 610.45 329.17
TOTAL 1SS4S.49 12SS2.21
36
NOTE S LONG TERM BORROWINGS
` |n |aos)
Part|cu|ars Non Current Port|on Current Port|on
S1.0S.2012 S1.0S.2011 S1.0S.2012 S1.0S.2011
A. Secured Loans
Term Loans from Banks
1 State Bank of Ind|a *
a) Fore|gn Currency Loan
- Pepayab|e on month|y bas|s w|th |ast |nsta|ment
due |n Jan 2013
- 1027.24 843.09 1029.52
due |n Jan 2013
- 465.21 436.96 512.30
b) Rupee Term Loan
due |n Jan 2013
- 291.29 241.11 317.95
- 17SS.74 1521.1S 1S59.77
2 HDFC Bank **
a) Fore|gn Currency Loan
- Pepayab|e on quarter|y bas|s w|th |ast |nsta|-
ment due |n Nov 2014
700.24 984.84 401.11 358.12
b) Rupee Term Loan
ment due |n Aug 2015
625.00 875.00 250.00 125.00
1S25.24 1S59.S4 S51.11 4SS.12
S Standard Chartered Bank ***
Foreign Currency Loan
ment due |n Oot 2015
1534.15 2118.59 584.44 219.16
ment due |n Nov 2016
2052.66 - 212.34 -
S5SS.S1 211S.59 79S.7S 219.1S
TOTAL (A) 4912.05 57S2.17 29S9.05 25S2.05
B. Unsecured Loans
Re|ated Part|es **** 4303.60 3841.70 - -
Others **** 38.62 32.18 - -
TOTAL (B) 4S42.22 SS7S.SS - -
TOTAL (A+B) 9254.27 9SSS.05 29S9.05 25S2.05
Deta||s of Secur|t|es for Term Loans
* State Bank of Ind|a
1
st
Par| Passu oharge over ent|re F|xed Assets both present & future & equ|tab|e mortgage of faotory |and & Bu||d|ng at P|ot No.326 MlE
Bahadurgarh,P|ot No.327 MlE Bahadurgarh,P|ot No.A-1130/1130A lndustr|a| Area-lll, Bh|wad|,P|ot No.83-92 Seotor 5 llE SlDCU|,Pan|pur,D|stt
Har|dwar,P|ot No.342-343,Seotor 17,Footwear Park,Bahadurgarh & W|nd M|||s |n D|stt Jodhpur. Persona| Guarantees of Manag|ng D|reotor &
Who|e T|me D|reotors.
** HDFC Bank
Exo|us|ve lst oharge on movab|e & |mmovab|e property at P|ot No. 328 MlE Bahadurgarh, Haryana & Freeho|d lndustr|a| P|ot No. 7, B|ook No. F,
MClE, Udyog Nagar, De|h| of a f|rm |n wh|oh d|reotors are partners. Persona| Guarantees of Manag|ng D|reotor & Who|e T|me D|reotor.
*** Standard Chartered Bank
Exo|us|ve 1
st
oharge on |and & Bu||d|ng at P|ot No. 30 Mooja Hasanpur, T|kr| Border, Bahadurgarh, Haryana |n the name of re|at|ves of
D|reotors.
Exo|us|ve 1
st
oharge on movab|e & |mmovab|e assets at P|ot No. 37, Seotor 4B, lndustr|a| Estate, Bahadurgarh, Haryana. Persona|
Guarantees of Manag|ng D|reotor & Who|e T|me D|reotor.
**** Re|ated Part|es/Others
The Unseoured |oans from promoters and/or the|r re|at|ves sha|| be repa|d on|y w|th the pr|or approva| of |end|ng banks. These are
|ong term borrow|ngs & have been |nduoted for future oap|ta| expans|on and are a|ways subord|nate to the |oans of banks.

37
NOTE 4 DEFERRED TAX LIABILITY ( Net)
The Pr|no|pa| oomponents of Net Deferred tax ||ab|||ty are as fo||ows .
` |n |aos)
Part|cu|ars
As at
S1.0S.2012
As at
S1.0S.2011
A. Deferred Tax ||ab|||ty ar|s|ng on account of
Depreo|at|on 2852.26 2701.54
B. Deferred Tax Assets ar|s|ng on account of
Entry tax 466.13 335.13
Unava||ed |eaves 123.16 91.53
Others 62.20 45.97
Deferred Tax Assets 651.49 472.63
Deferred Tax L|ab|||ty (Net) 2200.77 2228.91
NOTE 5 LONG TERM PROVISIONS
Prov|s|on for emp|oyee benef|ts
- Unava||ed |eaves 316.04 229.53
NOTE S OTHER LONG TERM LIABILITIES
Petent|on money 44.71 16.18
NOTE 7 SHORT TERM BORROWINGS
Seoured |oans
|oans Pepayab|e on Demand from Banks 5297.48 6011.58
The Short term borrow|ngs have been ava||ed from State Bank of lnd|a, Standard Chartered Bank, HDFC Bank ||m|ted & lNG vysya Bank
||m|ted.
- 1
st
Par| Passu Charge - Hypotheoat|on oharge over ent|re stooks & book debts / reoe|vab|es.
- Persona| Guarantees of Manag|ng D|reotor and Who|e T|me D|reotors.
- Add|t|ona| exo|us|ve 1
st
oharge of property s|tuated at P|ot no. 7, B|ook no. F, Udyog Nagar, De|h| to HDFC Bank ||m|ted. The property be|ongs
to the f|rm where the D|reotors are partners.
- Add|t|ona| exo|us|ve 1
st
oharge of the property s|tuated at P|ot no. 47, MlE Bahadurgarh to Standard Chartered Bank, that be|ongs to D|reotors
and re|at|ves.
NOTE S TRADE PAYABLES
Trade payab|es * 4207.64 5319.21
* The oompany has not reoe|ved |nt|mat|on from vendors regard|ng the|r status under the M|oro, Sma|| & med|um enterpr|ses Deve|opment Aot
2006, henoe d|so|osures re|at|ng to amounts unpa|d as at the year end together w|th |nterest pa|d/payab|e under the Aot have not been g|ven.
38
NOTE 9 OTHER CURRENT LIABILITIES
` |n |aos)
Part|cu|ars
As at
S1.0S.2012
As at
S1.0S.2011
Current Matur|t|es of Term |oans from banks refer Note 3) 2969.05 2562.05
lnterest Aoorued and due on Borrow|ngs 55.95 40.72
lnterest aoorued but not due 141.85 188.31
Advanoes from oustomers 449.17 315.03
Payab|e to Emp|oyees 799.04 609.02
D|reotors' Comm|ss|on payab|e 483.79 286.65
Expenses payab|e 403.21 472.88
Seour|ty depos|ts 356.34 301.89
Petent|on money 36.22 12.74
Cred|tors for F|xed Assets supp||es 33.97 74.63
Entry tax payab|e 1436.67 1008.90
Other taxes and statutory dues 311.43 223.37
lnvestor Eduoat|on and Proteot|on Fund sha|| be ored|ted by the fo||ow|ng amounts
as and when due, name|y .
Unpa|d D|v|dend refer Note 17) 4.41 3.76
TOTAL 74S1.10 S099.95
NOTE 10 SHORT TERM PROVISIONS
Taxat|on 1081.57 712.47
D|v|dend 180.02 120.01
D|v|dend D|str|but|on Tax 29.20 19.47
Unava||ed |eaves 63.57 46.02
O|d lnventory 37.72 -
lnterest on lnoome tax 14.65 0.04
Prov|s|on for Exo|se duty 17.78 17.74
TOTAL 1424.51 915.75
39
NOTE 11 FlXED ASSETS
` |n |aos)
Part|cu|ars GROSS BLOCK DEPRECIATION NET BLOCK
As at
1.4.2011
Add|t|ons De|et|ons/
Adjustments
Tota| As at
31.3.2012
As at
1.4.2011
For the
Year
De|et|ons/
Adjustments
Tota| as at
31.3.2012
As at
31.3.2012
As at
31.3.2011
TANGIBLE ASSETS
|AND FPEE HO|D 3084.79 53.45 64.91 3073.33 - - - - 3073.33 3084.79
|AND |EASEHO|D 560.61 - - 560.61 4.80 2.40 - 7.20 553.41 555.81
BUl|DlNGS 7893.03 92.42 - 7985.45 768.40 263.23 - 1031.63 6953.82 7124.63
P|ANT & MACHlNEPY 12956.08 1456.53 155.61 14257.00 4171.66 914.67 14.62 5071.71 9185.29 8784.42
MOU|DS 3176.39 487.23 14.08 3649.54 1893.67 368.28 - 2261.95 1387.59 1282.72
COMPUTEPS 576.90 78.40 1.01 654.29 294.41 67.06 0.65 360.82 293.47 282.49
MOTEP vEHlC|ES- OTHEP 525.35 189.31 24.90 689.76 172.08 57.45 16.76 212.77 476.99 353.27
MOTEP vEHlC|ES -
TPANSPOPT
216.17 52.59 5.27 263.49 98.10 24.57 5.28 117.39 146.10 118.07
FUPNlTUPE & FlXTUPE 630.58 139.43 8.84 761.17 111.55 43.62 2.50 152.67 608.50 519.03
E|ECTPlCA| FlTTlNGS 1024.31 43.55 - 1067.86 185.71 50.46 - 236.17 831.69 838.60
OFFlCE EQUlPMENTS 530.59 181.84 4.27 708.16 77.27 32.26 0.92 108.61 599.55 453.32
WOODEN STPUCTUPE 91.85 - - 91.85 64.99 26.86 - 91.85 - 26.86
WlND Ml||S 3523.93 - - 3523.93 473.33 364.37 - 837.70 2686.23 3050.60
TOTAL (A) S4790.5S 2774.75 27S.S9 S72SS.44 SS15.97 2215.2S 40.7S 10490.47 2S795.97 2S474.S1
INTANGIBLE ASSETS
COMPUTEP SOFTWAPE 456.13 58.64 - 514.77 120.57 90.22 - 210.79 303.98 335.56
TECHNlCA| KNOW HOW 7.53 - - 7.53 7.53 - - 7.53 - -
TPADE MAPKS 35.90 6.46 - 42.36 3.34 4.84 - 8.18 34.18 32.56
TOTAL (B) 499.5S S5.10 - 5S4.SS 1S1.44 95.0S - 22S.50 SSS.1S SSS.12
TANGIBLE CWIP
CAPlTA| WOPK lN
PPOGPESS
52.75 2102.45 52.75 2102.45 - - - - 2102.45 52.75
TOTAL (C) 52.75 2102.45 52.75 2102.45 - - - - 2102.45 52.75
INTANGIBLE CWIP
lNTANGlB|E ASSETS
UNDEP DEvE|OPMENT
30.79 0.55 7.28 24.06 - - - - 24.06 30.79
TOTAL (D) S0.79 0.55 7.2S 24.0S - - - - 24.0S S0.79
TOTAL (C+D) SS.54 210S.00 S0.0S 212S.51 - - - - 212S.51 SS.54
TOTAL (A+B+C+D) S5S7S.SS 4942.S5 SSS.92 S9977.S1 S447.41 2S10.29 40.7S 1071S.97 292S0.S4 2S92S.27
PREVIOUS YEAR - SS1S.S9 79.7S S5S7S.SS - 2095.4S 29.0S S447.41 2S92S.27 -
40
NOTE 12 NON CURRENT INVESTMENTS
` |n |aos)
Part|cu|ars
As at
S1.0S.2012
As at
S1.0S.2011
Equ|ty Shares (unquoted) (Trade) (at cost) 6.01 6.01
6040 Equ|ty Shares of `100/- eaoh fu||y pa|d of
Pe|axo Pubber Pr|vate ||m|ted an assoo|ate oompany
|no|udes 30 bonus shares)
Government Secur|t|es (Unquoted) (at cost) 0.10 0.10
6 Years Nat|ona| Sav|ngs Cert|f|oates
P|edged w|th Government Author|t|es)
TOTAL S.11 S.11
NOTE 1S LONG TERM LOANS AND ADVANCES
Unseoured, oons|dered Good
Advanoes reooverab|e |n oash or |n k|nd or for va|ue to be reoe|ved
Cap|ta| Advanoes 297.69 34.41
|oans and Advanoes to emp|oyees 3.34 3.47
Seour|ty Depos|ts * 736.37 669.86
MAT Cred|t 120.30 429.59
TOTAL 1157.70 11S7.SS
* lno|udes `252.16 |aos Prev|ous Year-`192.23 |aos) as seour|ty depos|ts due by Compan|es |n wh|oh D|reotors are |nterested.
NOTE 14 OTHER NON CURRENT ASSETS
Ba|anoes w|th Banks as Marg|n money on |etter of Cred|t and Bank Guarantees 1.87 1.55
Grants reoe|vab|e 112.50 -
TOTAL 114.S7 1.55
NOTE 15 INVENTORIES* (at |ower of cost or net rea||sab|e va|ue)
Paw Mater|a|s 3723.66 3481.47
Paok|ng Mater|a|s 166.18 166.34
Stook |n prooess 2276.27 2296.71
F|n|shed goods 4696.94 3703.53
Stook |n Trade 1671.47 1792.90
Fue| 52.27 48.41
Store, Spare and Too|s 262.90 169.55
TOTAL 12S49.S9 11S5S.91
* lno|udes Goods |n trans|t of `66.00 |aos prev|ous year -`230.54 |aos) |n raw mater|a|, `0.40 |aos prev|ous year - `1.16 |aos) |n paok|ng
mater|a|, `12.14 |aos prev|ous year - ` N||) |n stook |n trade, `1.87 |aos prev|ous year - N||) |n Fue| and `1.83 |aos prev|ous year - N||) |n Store,
Spare and Too|s.
41
NOTE 1S TRADE RECEIVABLES
` |n |aos)
Part|cu|ars
As at
S1.0S.2012
As at
S1.0S.2011
Debt outstand|ng for a per|od exceed|ng s|x months from the date they
are due for payment (Unsecured)
- Cons|dered good - 11.79
- Doubtfu| 40.29 57.72
40.29 69.51
|ess. Prov|s|on for Doubtfu| Debts 40.29 57.72
- 11.79
Other Debts
- Seoured, oons|dered good 92.71 -
- Unseoured, oons|dered good * 2206.19 2312.52
TOTAL 229S.90 2S24.S1
* lno|udes `0.96 |aos Prev|ous year -`78.82 |aos) from the f|rms |n wh|oh D|reotors are |nterested.
NOTE 17 CASH & BANK BALANCES
Cash and Cash Equ|va|ents
- Ba|anoes w|th Banks Current Aooounts) 10.06 65.03
- Cash on Hand 55.52 40.21
- Earmarked Ba|anoes w|th Banks Unpa|d D|v|dend Aooounts) refer Note 9) 4.41 3.76
Ba|anoes w|th Banks as Marg|n money on |etter of Cred|t and Bank guarantees 32.39 104.95
TOTAL 102.SS 21S.95
NOTE 1S SHORT TERM LOANS AND ADVANCES
Unseoured, oons|dered good
Advanoe lnoome Tax and w|thho|d|ng tax 904.50 704.78
|oans & advanoes to emp|oyees 10.67 38.80
Prepa|d Expenses 70.95 40.71
Depos|ts w|th Government departments and others 39.68 139.29
Advanoe to Supp||ers * 433.63 643.20
TOTAL 1459.4S 15SS.7S
* lno|udes ` N|| prev|ous year - `65.91 |aos) from the f|rm |n wh|oh D|reotors are |nterested.
NOTE 19 OTHER CURRENT ASSETS
lnterest aoorued on depos|ts and advanoes 1.48 2.34
Export reoe|vab|es 134.75 81.88
Grants reoe|vab|e 37.50 -
Unamort|sed prem|um on forward oontraots 47.12 -
TOTAL 220.S5 S4.22
42
NOTE 20 REVENUE FROM OPERATIONS (Gross)
` |n |aos)
Part|cu|ars 2011-12 2010-11
Sa|e of Products
- Footwear 85553.77 68200.77
- Power 489.53 455.57
Sa|e of Serv|ces 67.20 209.78
Tota| (A) SS110.50 SSSSS.12
Other Operat|ng Revenues
Sorap Sa|e 193.77 163.30
Export lnoent|ve 233.37 186.66
Tota| (B) 427.14 S49.9S
TOTAL (A + B) SS5S7.S4 S921S.0S
NOTE 21 OTHER INCOME
lnterest lnoome 5.54 4.22
Exohange Ga|n Net) 52.78 40.33
Prov|s|ons no |onger requ|red wr|tten baok 20.71 -
M|soe||aneous lnoome 26.76 7.88
TOTAL 105.79 52.4S
NOTE 22 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE
CLOSING STOCK
F|n|shed Goods 4696.94 3703.53
Stook |n Trade 1671.47 1792.90
Work |n Progress 2276.27 2296.71
8644.68 7793.14
OPENING STOCK
F|n|shed Goods 3703.53 1590.80
Stook |n Trade 1792.90 1604.20
Work |n Progress 2296.71 849.98
7793.14 4044.98
lnorease)/ Deorease 851.54) 3748.16)
Change |n Exo|se Duty on Stooks 0.05 14.18
TOTAL (S51.49) (S7SS.9S)
NOTE 2S EMPLOYEE BENEFITS EXPENSE
Sa|ar|es, Wages, Bonus and A||owanoes 9475.24 6735.78
Contr|but|on to Prov|dent Fund and other funds 683.22 444.85
Staff We|fare Expenses 462.03 267.46
TOTAL 10S20.49 744S.09
NOTE 24 SELLING AND DISTRIBUTION EXPENSES
Advert|sement & Pub||o|ty 2961.77 2482.38
Sa|es Promot|on & lnoent|ves 2707.26 2941.38
Cash D|soount 1993.85 1530.49
Fre|ght & hand||ng oharges 2995.50 2468.87
TOTAL 10S5S.SS 942S.12
43
NOTE 25 FINANCE COSTS
` |n |aos)
Part|cu|ars 2011-12 2010-11
lnterest Expense 1645.30 1362.43
Other Borrow|ng Costs 31.42 40.12
Amort|sed Prem|um on Fore|gn Currenoy Borrow|ngs 190.46 188.30
TOTAL 1SS7.1S 1590.S5
NOTE 2S OTHER EXPENSES
Power & Fue| 3118.99 2788.28
Pent 1747.32 1452.11
Pepa|rs- Bu||d|ng 44.82 24.02
Pepa|rs- Maoh|nery 222.25 163.60
Other Pepa|rs 514.86 470.14
Stores and Spares Consumed 256.56 144.30
Hand||ng and Others Charges 1318.20 749.09
lnsuranoe 117.13 105.78
Trave|||ng & Conveyanoe 790.06 551.81
Prov|s|on for doubtfu| debts 3.28 1.31
Bad debts wr|tten off 20.38 7.69
Pates & Taxes 44.62 22.51
Pr|nt|ng & Stat|onery 84.24 80.13
Commun|oat|on Expenses 201.11 166.91
Seour|ty Expenses 308.50 237.23
|ega| & Profess|ona| Expenses 281.77 89.52
|oss on Sa|e of Assets Net) 61.14 43.07
M|soe||aneous Expenses 707.28 440.48
TOTAL 9S42.51 75S7.9S
NOTE 27 - ACCOUNTING POLICIES AND
ADDITIONAL NOTES ON ACCOUNTS
A. SIGNIFICANT ACCOUNTING POLICIES
1. NATURE OF OPERATION
The oompany |s pr|mar||y engaged |n the bus|ness of
manufaotur|ng and trad|ng of footwear and aooessor|es
through |ts reta||, export and who|esa|e network.
2. ACCOUNTING CONVENTION
The F|nano|a| Statements have been prepared under
the h|stor|oa| oost oonvent|on and |n aooordanoe w|th
genera||y aooepted aooount|ng pr|no|p|es and the
prov|s|ons of the Compan|es Aot, 1956.
Dur|ng the year ended 31
st
Maroh 2012, the rev|sed
Sohedu|e vl not|f|ed under the Compan|es Aot, 1956 has
beoome app||oab|e to the oompany, for preparat|on and
presentat|on of |ts f|nano|a| statements. The adopt|on of
rev|sed Sohedu|e vl does not |mpaot reoogn|t|on and
measurement pr|no|p|es fo||owed for preparat|on of
f|nano|a| statements. However, |t has s|gn|f|oant |mpaot
on presentat|on and d|so|osure made |n the f|nano|a|
statements. The oompany has a|so reo|ass|f|ed prev|ous
year f|gures |n aooordanoe w|th the requ|rements
app||oab|e |n the ourrent year.
S. USE OF ESTIMATES
The preparat|on of the f|nano|a| statements |n oonform|ty
w|th lnd|an GAAP requ|res the Management to make
est|mates and assumpt|ons oons|dered |n the reported
amounts of assets and ||ab|||t|es |no|ud|ng oont|ngent
||ab|||t|es) and the reported |noome and expenses dur|ng
the year. The Management be||eves that the est|mates
used |n preparat|on of the f|nano|a| statements are
prudent and reasonab|e. Future resu|ts oou|d d|ffer due
to these est|mates and the d|fferenoes between the
aotua| resu|ts and the est|mates are reoogn|sed |n the
per|od |n wh|oh the resu|ts are known / mater|a||se.
44
4. INVENTORIES
Inventor|es are va|ued as under :
- Paw Mater|a|, Paok|ng Mater|a|, Stook-|n-prooess,
F|n|shed goods, Stook-|n-Trade, Fue|, Store, Spare
& Too|s at oost or net rea||zab|e va|ue, wh|ohever |s
|ower. The oost |s determ|ned on we|ghted average
bas|s and |no|udes fre|ght, taxes and dut|es and
|s net of ored|t under vAT and CENvAT sohemes,
wherever app||oab|e.
- Manufaotured Goods at oost or net rea||zab|e va|ue,
wh|ohever |s |ower. Cost |no|ude a|| d|reot oosts and
app||oab|e produot|on overheads to br|ng the goods
to the present |ooat|on and oond|t|on.
- Exo|se duty aoorued on the produot|on of
manufaotured goods |s |no|uded |n the va|uat|on of
|nventor|es, wherever app||oab|e.
5. CASH AND CASH EQUIVALENTS
Cash oompr|ses oash on hand and demand depos|ts
w|th banks. Cash equ|va|ents are short-term ba|anoes,
h|gh|y ||qu|d |nvestments that are read||y oonvert|b|e
|nto known amounts of oash and wh|oh are subjeot to
|ns|gn|f|oant r|sk of ohanges |n va|ue.
S. CASH FLOW STATEMENT
Cash f|ows are reported us|ng the |nd|reot method,
whereby prof|t/ |oss) before extraord|nary |tems and
tax |s adjusted for the effeots of transaot|ons of non-
oash nature and any deferra|s or aoorua|s of past or
future oash reoe|pts or payments. The oash f|ows
from operat|ng, |nvest|ng and f|nano|ng aot|v|t|es of the
Company are segregated.
7. PRIOR PERIOD & EXTRA ORDINARY ITEMS
Pr|or per|od as we|| as Extra Ord|nary |tems hav|ng
mater|a| |mpaot on the f|nano|a| affa|rs of the oompany
are d|so|osed separate|y.
S. DEPRECIATION AND AMORTISATION
Depreo|at|on has been prov|ded on stra|ght-||ne method
S|M) at the rates and |n the manner presor|bed |n
Sohedu|e Xlv of the Compan|es Aot, 1956. The va|ue of
|easeho|d |and has been granted for |ong per|od and |s
therefore, not amort|zed, exoept va|ue of |easeho|d |and
of W|ndm|||, wh|oh |s amort|sed over the per|od of |ease.
Cost of |easeho|d |mprovements are amort|sed over the
per|od of |ease or the|r usefu| ||ves wh|ohever |s |ower.
The Trade Marks are amort|sed over the|r usefu| ||fe or
ten years wh|ohever |s |ower. Computer softwares are
amort|sed over the per|od of f|ve years.
9. REVENUE RECOGNITION
Sa|es are reoogn|zed, net of trade d|soounts, returns
and o|a|ms, on transfer of s|gn|f|oant r|sks and rewards
of ownersh|p to the buyer, wh|oh genera||y oo|no|des
w|th the de||very of goods to oustomers. Sa|es |no|ude
exo|se duty but exo|ude sa|es tax and va|ue added tax.
Sa|es from serv|oes are reoogn|sed when the serv|oes
are rendered and re|ated oosts are |nourred. lnterest
|noome |s aooounted on aoorua| bas|s. D|v|dend |noome
|s aooounted for when the r|ght to reoe|ve |s estab||shed.
10. TANGIBLE FIXED ASSETS
F|xed assets are stated at h|stor|oa| oost of aoqu|s|t|on/
oonstruot|on |ess aooumu|ated depreo|at|on. A|| oost
|no|ud|ng |nterest re|at|ng to aoqu|s|t|on of f|xed assets t|||
the t|me of oomm|ss|on|ng of suoh assets are oap|ta||zed.
Grants/ subs|dy reoe|ved have been reduoed from the
oost of speo|f|o f|xed assets.
Projeot under wh|oh assets are not ready for the|r
|ntended use and other oap|ta| work-|n-progress are
oarr|ed at oost, oompr|s|ng d|reot oost, re|ated |no|denta|
expenses and attr|butab|e |nterest.
Any |mpa|rment |oss |s reoogn|zed, whenever oarry|ng
va|ue of f|xed assets exoeeds the market va|ue or va|ue
|n use, wh|ohever |s h|gher.
11. INTANGIBLE ASSETS
lntang|b|e assets are oarr|ed at oost |ess aooumu|ated
amort|sat|on and |mpa|rment |osses, |f any. The oost
of an |ntang|b|e asset oompr|ses |ts purohase pr|oe
|no|ud|ng |mport dut|es and other taxes other than
those subsequent|y reooverab|e from the tax|ng
author|t|es), and any d|reot|y attr|butab|e expend|ture on
mak|ng the asset ready for |ts |ntended use. Subsequent
expend|ture on an |ntang|b|e asset after |ts purohase /
oomp|et|on |s reoogn|sed as an expense when |nourred
un|ess |t |s probab|e that suoh expend|ture w||| enab|e
the asset to generate future eoonom|o benef|ts |n exoess
of |ts or|g|na||y assessed standards of performanoe and
suoh expend|ture oan be measured and attr|buted to the
asset re||ab|y, |n wh|oh oase suoh expend|ture |s added
to the oost of the asset.
12. RESEARCH AND DEVELOPMENT EXPENSES
Pevenue expend|ture perta|n|ng to researoh |s oharged
to the Statement of Prof|t and |oss. Deve|opment oosts
of produots are a|so oharged to the Statement of Prof|t
and |oss un|ess a produot's teohno|og|oa| feas|b|||ty
has been estab||shed, |n wh|oh oase suoh expend|ture
|s oap|ta||sed. F|xed assets ut|||sed for researoh and
deve|opment are oap|ta||sed and depreo|ated |n
aooordanoe w|th the po||o|es stated for Tang|b|e F|xed
Assets and lntang|b|e Assets.
1S. FOREIGN CURRENCY TRANSACTION
Transaot|on |n fore|gn ourrenoy are aooounted for
at the exohange rates preva|||ng on the date of the
transaot|on. Monetary ourrent assets and ||ab|||t|es at
the year end are trans|ated at the rate preva|||ng on |ast
day of f|nano|a| year. The d|fferenoe thereon and a|so the
exohange d|fferenoe on sett|ement of fore|gn ourrenoy
transaot|ons dur|ng the year are reoogn|zed as |noome
45
or expenses |n Statement of Prof|t and |oss. Non-
monetary |tems are oarr|ed at h|stor|oa| oost.
Der|vat|ve transaot|ons are oons|dered as off-ba|anoe
sheet |tems and oash f|ows ar|s|ng thereon are
reoogn|zed |n the books of aooount on pr|no|p|e of
Prudenoe as presor|bed |n the Aooount|ng Standard
AS-1) |ssued by the lnst|tute of Chartered Aooountants
of lnd|a. Prem|um/ d|soount on forward exohange
oontraots, wh|oh are not |ntended for trad|ng or
speou|at|on purposes, are amort|sed over the per|od of
the oontraots |f suoh oontraots re|ate to monetary |tems
as at the Ba|anoe Sheet date.
14. GOVERNMENT GRANTS
Government grants |n the nature of promoters'
oontr|but|on ||ke |nvestment subs|dy, where no
repayment |s ord|nar||y expeoted |n respeot thereof, are
treated as oap|ta| reserve. Any Grants/ Subs|dy reoe|ved
aga|nst speo|f|o f|xed assets are reduoed from the oost
of f|xed assets.
Export benef|ts are aooounted for |n the year of exports
based on e||g|b|||ty and when there |s no unoerta|nty |n
reoe|v|ng the same.
15. INVESTMENTS
|ong Term lnvestments are stated at oost. Cost
of |nvestment |no|ude aoqu|s|t|on oharges suoh as
brokerage, fees and dut|es.
1S. EMPLOYEE BENEFITS
Pet|rement benef|ts |n the form of Prov|dent Fund &
Gratu|ty are def|ned oontr|but|on p|an and the oontr|but|on
are oharged to Statement of Prof|t and |oss of the year
when the oontr|but|on to the respeot|ve funds are due. ln
oase of Gratu|ty ob||gat|ons, oompany has taken po||oy
from ||fe lnsuranoe Corporat|on of lnd|a. There are no
other ob||gat|ons other than the oontr|but|ons payab|e to
the respeot|ve author|t|es. |eave enoashment benef|t |s
oharged to Statement of Prof|t and |oss on the bas|s of
aotuar|a| va|uat|on at the end of f|nano|a| year.
17. BORROWING COSTS
Borrow|ng oosts |no|ude |nterest, amort|sat|on of
ano|||ary oosts |nourred and exohange d|fferenoes
ar|s|ng from fore|gn ourrenoy borrow|ngs to the extent
they are regarded as an adjustment to the |nterest oost.
Costs |n oonneot|on w|th the borrow|ng of funds to the
extent not d|reot|y re|ated to the aoqu|s|t|on of qua||fy|ng
assets are oharged to the Statement of Prof|t and |oss
over the tenure of the |oan. Borrow|ng oosts, a||ooated
to and ut|||sed for qua||fy|ng assets, perta|n|ng to the
per|od from oommenoement of aot|v|t|es re|at|ng to
oonstruot|on/ deve|opment of the qua||fy|ng asset upto
the date of oap|ta||sat|on of suoh asset |s added to the
oost of the assets.
1S. LEASES
Assets aoqu|red under |eases where a s|gn|f|oant port|on
of the r|sks and rewards of ownersh|p are reta|ned by
the |essor are o|ass|f|ed as operat|ng |eases. |ease
renta|s are expensed w|th referenoe to |ease terms and
other oons|derat|ons.
19. EARNINGS PER SHARE
Bas|o earn|ngs per share |s oomputed by d|v|d|ng the
prof|t / |oss) after tax |no|ud|ng the post tax effeot of
extraord|nary |tems, |f any) by the we|ghted average
number of equ|ty shares outstand|ng dur|ng the year.
20. TAX ON INCOME
Prov|s|on for ourrent Tax |s made as per the prov|s|on of
lnoome Tax Aot, 1961.
Deferred tax |s reoogn|zed on t|m|ng d|fferenoe between
the book and taxab|e prof|t for the year and quant|f|ed
us|ng the tax rates and |aw enaoted or substant|ve|y
enaoted as on the Ba|anoe Sheet date.
Deferred tax assets are reoogn|zed and oarr|ed
forwarded on|y to the extent that there |s a reasonab|e
oerta|nty that asset w||| be rea||zed |n future.
M|n|mum A|ternat|ve Tax MAT) ored|t |s reoogn|zed as
an asset on|y when and to the extent there |s oonv|no|ng
ev|denoe that the oompany w||| pay norma| lnoome Tax
dur|ng the speo|f|ed per|od. ln the per|od/ year |n wh|oh
the MAT ored|t beoomes e||g|b|e to be reoogn|sed as
an asset |n aooordanoe w|th the reoommendat|ons
oonta|ned |n Gu|danoe Note |ssued by the lnst|tute of
Chartered Aooountants of lnd|a, the sa|d asset |s oreated
by way of ored|t to the Statement of Prof|t and |oss
and shown as MAT Cred|t Ent|t|ement. The Company
rev|ews the same at eaoh ba|anoe sheet date and wr|tes
down the oarry|ng amount of MAT Cred|t Ent|t|ement to
the extent there |s no |onger oonv|no|ng ev|denoe to the
effeot that oompany w||| pay norma| lnoome Tax dur|ng
the speo|f|ed per|od.
21. PROVISIONS & CONTINGENT LIABILITIES
Prov|s|on |nvo|v|ng substant|a| degree of est|mat|on |n
measurement are reoogn|zed when there |s a present
ob||gat|on as a resu|t of past events and |t |s probab|e
that there w||| be an outf|ow of resouroes. Cont|ngent
||ab|||t|es, |f mater|a|, are d|so|osed by way of notes.
46
B. ADDITIONAL NOTES ON ACCOUNTS
1. Cont|ngent ||ab|||t|es and Comm|tments .-
|) Cont|ngent ||ab|||t|es
` |n |aos)
Part|cu|ars As at
S1.0S.2012
As at
S1.0S.2011
a) C|a|ms aga|nst
the oompany, not
aoknow|edged as
debts
72.69 95.50
b) Surety Bonds g|ven
to Govt. Author|t|es
7.50 28.23
o) The |awsu|ts |n respeot of oerta|n lnte||eotua|
Property P|ghts & Trademarks are pend|ng |n
Courts. The prooeed|ngs are at the pre||m|nary
stage and the u|t|mate outoome of the matter
oannot present|y be determ|ned. No prov|s|on for
any ||ab|||ty that may resu|t has been made.
||) Comm|tments
a) Est|mated amount of oontraots rema|n|ng to be
exeouted on oap|ta| aooount and not prov|ded for
`1780.29 |aos Prev|ous Year- `182.90 |aos).
b) The Company has obta|ned ||oenses under the
Export Promot|on Cap|ta| Goods EPCG) Soheme
for |mport|ng oap|ta| goods at the oonoess|ona|/
Zero rate of oustom duty. As per the soheme, the
oompany |s ob||ged to export e|ght/s|x t|mes of duty
saved |n next 8/6 years. The tota| export ob||gat|on |s
`609.94 |aos aga|nst tota| duty saved of `79.99 |aos
Prev|ous year `5457.68 |aos aga|nst duty saved of
`682.21 |aos)
2. Cap|ta| Work |n progress |no|udes `102.51 |aos Prev|ous
year ` N||) on aooount of preoperat|ve expenses |nourred
dur|ng the year.
3. Certa|n ba|anoes of Sundry Debtors, Cred|tors and
Advanoes from Customers are subjeot to oonf|rmat|on.
4. ADDITIONAL INFORMATION REQUIRED UNDER SCHEDULE VI OF THE COMPANIES ACT, 195S
a) Deta||s as regards to Open|ng Stook, Purohase, Sa|e & C|os|ng Stook
` |n |aos)
Part|cu|ars Open|ng Stock Purchase Sa|es C|os|ng
Stock
Footwear - Manufaotured/Traded 5496.43 8059.11 85553.77 6368.41
3195.00) 7283.34) 68200.77) 5496.43)
Power - - 489.53 -
-) -) 455.57) -)
Others - - 67.20 -
-) -) 209.78) -)
Tota| 5496.43 8059.11 86110.50 6368.41
3195.00) 7283.34) 68866.12) 5496.43)
F|gures w|th|n braokets perta|n to prev|ous year.
b) Paw mater|a| oonsumed
Part|cu|ars 2011-12 2010-11
Paw Pubber 5137.35 6252.46
EvA 13012.77 10174.36
Synthet|o Pubber 533.11 941.27
Others 20030.85 16645.80
Tota| SS714.0S S401S.S9
o) va|ue of |mported and |nd|genous mater|a| oonsumed and peroentage thereof
Part|cu|ars 2011-12 2010-11
% va|ue % va|ue
lmported 3.55 1375.11 1.52 518.70
lnd|genous 96.45 37338.97 98.48 33495.19
Tota| 100.00 SS714.0S 100.00 S401S.S9
47
d) C.l.F. va|ue of |mports ` |n |aos)
Part|cu|ars 2011-12 2010-11
|. Cap|ta| goods 1143.92 1611.06
||. Mater|a|s |no|ud|ng Store, Spare 3211.18 1896.63
e) Expend|ture |n fore|gn ourrenoy on aoorua| bas|s)
Part|cu|ars 2011-12 2010-11
|. Trave|||ng Expenses 31.89 16.80
||. lnterest 629.72 385.96
|||. Others 148.58 36.68
f) Earn|ng |n Fore|gn Exohange FOB va|ue of Export Sa|e) 2975.45 2111.05
5. Wea|th Tax prov|s|on of `4.40 |aos prev|ous year `3.15 |aos ) |s |no|uded |n Pates and Taxes.
6. Pe|ated party re|at|onsh|ps/transaot|ons warrant|ng d|so|osures under AS-18 |ssued by "The lnst|tute of Chartered Aooountants
of lnd|a" are as under .
1) Names and re|at|onsh|p of the part|es
Name Re|at|onsh|p
Pe|axo Pubber Pr|vate ||m|ted Assoo|ate oompany
Marve| Po|ymers Pr|vate ||m|ted Assoo|ate oompany
Nuwave Shoes Assoo|ate oonoern
Pate| O|| M|||s Assoo|ate oonoern
Shr| Moo| Chand Dua Memor|a| Soo|ety Ent|t|es where Key Management Personne|
Shr|mat| Pam D|tt| Dua Memor|a| Soo|ety exero|se s|gn|f|oant |nf|uenoe.
2) Key Management Personne| & the|r re|at|ves
Key Management Personne|
Mr. Pamesh Kumar Dua Manag|ng D|reotor
Mr. Mukand |a| Dua Who|e T|me D|reotor
Mr. N|kh|| Dua Who|e T|me D|reotor
Re|at|ves
Ms. Usha Dua W|fe of Who|e T|me D|reotor
Ms. |a||ta Dua W|fe of Manag|ng D|reotor
Mr. P|tesh Dua Son of Who|e T|me D|reotor
Mr. N|t|n Dua Son of Who|e T|me D|reotor
Mr. Gaurav Dua Son of Manag|ng D|reotor
Ms. Saksh| Dua Daughter of Manag|ng D|reotor
Mr. Pahu| Dua Son of Manag|ng D|reotor
Ms. Gar|ma Dua W|fe of Who|e T|me D|reotor
Ms. Shash| Mehra S|ster of Manag|ng D|reotor
Ms. Aa|ya Dua Daughter of Who|e t|me D|reotor
Sh. Pamesh Kumar Dua H.U.F) H.U.F.
Sh. Mukand |a| Dua H.U.F) H.U.F.
Sh. Moo| Chand Dua H.U.F) H.U.F.
]
48
S) D|sc|osure of Re|ated party transact|ons
` |n |aos)
Transact|ons 2011-12 2010-11
Assoo|ates Key
management
personne| &
re|at|ves
Tota| Assoo|ates Key
management
personne| &
re|at|ves
Tota|
Sa|e of goods 192.12 - 192.12 343.98 - 343.98
Purohase of goods Net of taxes) 16456.34 - 16456.34 17179.46 - 17179.46
Purohase of Assets Net of taxes) 166.90 39.50 206.40 61.89 - 61.89
Sa|e of Assets Net of taxes) 0.50 - 0.50 - - -
Pent pa|d 352.40 338.58 690.98 280.36 309.28 589.64
Pender|ng of serv|oes Job work) 67.20 - 67.20 209.78 - 209.78
Peoe|v|ng of serv|oes - - - 2.40 - 2.40
Guarantees & oo||atera|s taken - 25218.00 25218.00 - 19667.00 19667.00
D|v|dend pa|d to shareho|ders - 90.01 90.01 - 135.01 135.01
Payment of sa|ary / perqu|s|tes - 238.62 238.62 - 221.09 221.09
Comm|ss|on - 483.79 483.79 - 286.65 286.65
|oans Year end ba|anoe) - 4303.60 4303.60 - 3841.71 3841.71
lnterest on unseoured |oans - 422.36 422.36 - 332.09 332.09
Donat|on - 240.00 240.00 - 80.00 80.00
Amount due to/from re|ated
part|es
Deb|t ba|anoe outstand|ng as on
31
st
Maroh
Outstand|ng reoe|vab|e 0.96 - 0.96 144.73 - 144.73
Cred|t ba|anoe outstand|ng as on
31
st
Maroh
Outstand|ng payab|e 962.73 - 962.73 1661.72 4.61 1666.33
7. The |ease renta|s oharged dur|ng the year for oanoe|ab|e/ non-oanoe|ab|e |eases re|at|ng to rent of bu||d|ng prem|ses as per
the agreements and max|mum ob||gat|on on |ong term non -oanoe|ab|e operat|ng |eases are as fo||ows .
2011-12 2010-11
|ease Penta|s 1747.32 1455.72
Ob||gat|ons on non cance|ab|e |eases :
Not |ater than one year 3.08 26.63
|ater than one year but not |ater than f|ve years - 3.08
|ater than f|ve years - -
Tota| S.0S 29.71
49
S. Emp|oyee Benef|ts
A. Def|ned Contr|but|on P|an
Dur|ng the year, the oompany has reoogn|sed the fo||ow|ng amount |n the Statement of Prof|t & |oss .
` |n |aos)
Fund 2011-12 2010-11
Emp|oyer's Contr|but|on to Prov|dent & Pens|on Fund 650.31 463.61
Emp|oyer's Contr|but|on to ESlC Soheme 283.19 178.30
Emp|oyer's Contr|but|on to |lC Gratu|ty Soheme 153.25 80.86
The above |no|udes Emp|oyer Contr|but|on to Prov|dent and Pens|on Fund on aooount of Contraotua| |abour amount|ng to
`236.68 |aos Prev|ous Year `184.09 |aos) and Emp|oyer Contr|but|on to ESlC Soheme on aooount of Contraotua| |abour
amount|ng to `166.86 |aos Prev|ous Year `93.83 |aos)
B. Def|ned Benef|t P|an
The present va|ue of ob||gat|on |s determ|ned based on aotuar|a| va|uat|on us|ng the Projeoted Un|t Cred|t Method, wh|oh
reoogn|ses eaoh per|od of serv|oe as g|v|ng r|se to add|t|ona| un|t of emp|oyee benef|t ent|t|ement and measures eaoh un|t
separate|y to bu||d up the f|na| ob||gat|on.
Part|cu|ars : Leave Encashment (Unfunded) 2011-12 2010-11
Reconc|||at|on of open|ng & c|os|ng ba|ances of Def|ned Benef|t P|an
Present va|ue of Ob||gat|on as at the beg|nn|ng of the year 275.55 152.42
Current Serv|oe Cost 128.00 69.93
lnterest Cost 22.04 11.89
Aotuar|a| ga|n)/ |oss on ob||gat|ons 3.75) 69.05
Benef|t Pa|d 42.23) 27.74)
Present va|ue of Ob||gat|on as at the end of the Year 379.61 275.55
Reconc|||at|on of Fa|r va|ue of assets and ob||gat|ons
Fa|r va|ue of P|an Assets - -
Present va|ue of ob||gat|on 379.61 275.55
Amount reoongn|sed |n Ba|anoe Sheet 379.61 275.55
Expense Recogn|sed dur|ng the year
Current Serv|oe Cost 128.00 69.93
lnterest Cost 22.04 11.89
Expeoted Peturn on P|an Assets - -
Aotuar|a| ga|n)/ |oss on ob||gat|ons 3.75) 69.05
Net oost 146.29 150.87
Actuar|a| assumpt|ons
D|soount Pate per annum) 8.60% 8.00%
Expeoted Pate of Peturn on P|an Assets - -
Pate of esoa|at|on |n sa|ary per annum) 10.00% 10.00%
The above |nformat|on |s oert|f|ed by Aotuary. The est|mates of esoa|at|on |n sa|ary take |nto aooount |nf|at|on, sen|or|ty,
promot|on & other re|evant faotors.
50
9. Earn|ng per share EPS) oomputed |n aooordanoe w|th Aooount|ng Standard -20 |s as under .
` |n |aos)
Part|cu|ars 2011-12 2010-11
Prof|t After Tax 3990.50 2671.31
No. of share |ssued 12001200 12001200
Bas|o & d||uted Earn|ng per share of `5/- eaoh `) 33.25 22.26
10. Fore|gn Currenoy Exposure
Amount |n |aos)
Purpose Currency As at
S1.0S.2012
As at
S1.0S.2011
a) Unhedged Fore|gn Currenoy Exposure
- Outstand|ng lmport Cred|tors USD 0.02 0.73
- Outstand|ng lmport Cred|tors EUPO 1.60 -
- Outstand|ng Export Debtors USD 10.96 9.32
- Outstand|ng lnterest on Fore|gn Currenoy |oans USD 0.24 0.55
b) The deta||s of Der|vat|ves Outstand|ng
- Forward Contraots - lmport Cred|tors USD - 7.48
- Forward Contraots - lmport Orders USD 2.58 1.19
- Forward Contraots - Export Debtors USD - 1.04
- Forward Contraots - Export Orders USD - 4.90
- Forward Contraots - Fore|gn Currenoy |oans USD 165.42 188.43
11. The |nterest |no|udes `23.92 |aos Prev|ous year `9.47 |aos) pa|d to Manag|ng D|reotor.
12. Pemunerat|on to Aud|tors *
` |n |aos)
Part|cu|ars 2011-12 2010-11
Statutory Aud|t Fee 5.17 5.08
Tax Aud|t 1.29 1.10
||m|ted Pev|ew & other serv|oes 4.14 3.31
Tota| 10.S0 9.49
* lno|uded |n |ega| & Profess|ona| expenses refer Note No. 26)
13. The segment report|ng as per AS-17 |ssued by 'The lnst|tute of Chartered Aooountants of lnd|a' |s not app||oab|e.
14. Extraord|nary |tems |no|ude |oss of `3.83 |aos Prev|ous Year - `N||) |nourred due to f|re.
15. Pr|or per|od adjustments |no|ude wr|te baok of prov|s|ons no |onger requ|red ` N|| Prev|ous Year - `7.73 |aos).
16. Prev|ous year f|gures have been regrouped/reo|ass|f|ed wherever neoessary to oonform to ourrent presentat|on.
FOR GUPTA & DUA
M.No. 085323
Regd. Off|ce : 316 - 319, A|||ed House lnder|ok Chowk, O|d Pohtak Poad, De|h| - 110 035
ATTENDANCE SLIP
P|ease oomp|ete th|s attendanoe s||p and hand |t over at the entranoe oounter at Sr| Sathya Sa| lnternat|ona| Centre, |odh| Poad
lnst|tut|ona| Area, Pragat| v|har, New De|h| - 110 003 on Monday, 17th September 2012 at 10.30 a. m.
NAME OF MEMBER
FOLIO NO NO OF SHARES
DP ID NO CLIENT ID NO
NAME OF MEMBER/
PROXY
SIGNATURE OF
MEMBER/PROXY
NOTES : -
1. Members/Proxy ho|ders are requested to br|ng the|r oop|es of the Annua| Peport w|th them to the meet|ng.
2. For the oonven|enoe of Members, persons other than Members/Prox|es, w||| not be a||owed |nto the meet|ng.
NOTE : No G|ft / G|ft Coupons w||| be d|str|buted at the meet|ng
------------------------------------------------------------------ Tear from here ----------------------------------------------------------------------
PROXY FORM
Fo||o No .................................................................................................... DP lD .................................................................................................
No of Shares. ............................................................................................ C||ent lD ...............................................................................................
l/We ................................................................................................. of .......................................................................................................................
|n the d|str|ot of.......................................................................................................be|ng a member/members of Pe|axo Footwears ||m|ted
hereby appo|nt................................................................................................. or fa|||ng h|m/her .......................................................................
of ...............................................................................................................................................................................................................................
..................................................................... |n the d|str|ot of ................................................................................................. as my/our proxy
to attend & vote for me/us and on my/our beha|f at the 28th Annua| Genera| Meet|ng of the Company to be he|d on Monday, the
17th September 2012 at Sr| Sathya Sa| lnternat|ona| Centre, |odh| Poad lnst|tut|ona| Area, Pragat| v|har, New De|h| 110 003 or at any
adjournment thereof.

S|gned th|s .................... day........... of September, 2012 SlGNED .................................................
NOTE : THIS PROXY TO BE VALID SHOULD BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS
THAN 4S HOURS BEFORE THE COMMENCEMENT OF THE MEETING. THE PROXY NEED NOT BE A MEMBER OF
THE COMPANY.
Aff|x `1.00
Pevenue
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Relaxo Footwears LTD 2012

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12

ANNUAL REPORT 2011-12

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