SECTION - 1

ABOUT COMPANY
The organization was consolidated on thirteenth September, 1984 as a Private Restricted Company. The
organization was in this manner changed over into a Pubic Restricted Company on 31at March, 1993.
RELAXO FOOTWEARS LTD. is a showcasing organization of the Relaxo Group and at exhibit, it is nearly
held.

The Group contains five distinctive assembling units with add up to plant space of more than 120,000
sq.ft. More than 1100 representatives in distinctive trains and has a system of more than 200
wholesalers and 20,000 merchants. The gathering produces Rubber Hawai Chappals, Canvas, hoes,
sports shoes, easygoing shoes, cowhide shoes and light weight chappals. Its aggregate every day
generation of all footwear is approx. 50,000 sets for each day of which roughly 90% a Hawai and
Lightweight Chappals - a portion in which the gathering is one of the best producers in India.

M/S Relaxo Rubbers, which is an association, firm of Mr. R.K. Dua (HUF), Mr. M.C. Dua (HUF) and Smt.
Usha Dua began its business in 1979. The firm is occupied with assembling of light weight elastic
Chappals and unified elastic items.

Relaxo Rubber Ltd. was joined in the year 1982 and began its task from first October 1984. The
organization is occupied with the creation of elastic footwear.

Patel Oil Mills is likewise an association firm of Mr. Mukund Lal Dua and Mr. Ramesh Kumar Dua which
initiated its activity in the year 1985.
The firm produces Hawai Chappals, Canvas Shoes and partnered elastic Products. Taking a gander at the
rising interest of cowhide items, Relaxo Global, an association firm of Mr. Mukund Lal Dua and Mr.
Ramesh Kumar Dua was shaped which began its business in 1991.

Nu-Wave Shoes, a proprietorship firm and primarily occupied with assembling of PVC footwear with a
little generation of elastic and canvas shoes.

Gumber Dyeing and Printing Works an association firm of Mr. M.L. Dua and R.K. Dua, began its business
in 1991. The firm is primarily locked in blending elastic mixes and pressing the completed products of
Relaxo Rubbers.

ABOUT INDUSTRY
Indian footwear industry is the second biggest business supplier post-agribusiness. It likewise
stands second on the planet as far as footwear makers, this adds to 9.57% of world's footwear
generation. India's general creation is approx 2200 million sets total of all footwear
classifications, out of which approx 95% is being devoured by the Indian market.

There are around 1.10 million specialists who are into footwear fabricating industry in India. The
footwear business in India is a mix of both conventional and current area. With time this industry
is floating more to present day retail structure, appropriation of innovation is a case for this. The
customary footwear segment is spread the nation over, though the cutting edge part is bound
significantly to urban communities and metros which the real habitats are for sends out.

After China and USA, India stands third in footwear devouring nation while second on the planet
as far as footwear makers. Footwear industry covers 9% of the aggregate Indian Fashion
inventory which is relied upon to grow four-crease to $30 billion by 2020. The development in
Indian design and way of life showcase has given a goad to the footwear business also. It has
created as a design and style class from an essential need-based industry. Right now, a
noteworthy piece of India's form advertises is carefully affected.

Because of the expanding request, the web based business show has entered to the footwear
business. This has given the plentiful chances to the SME part to enter into level II and III urban
areas. Additionally, gave the stage to numerous endeavors and premium footwear marks a
straight forwardness to attempt to tap the market utilizing the internet business.

Web based retailing has helped SME and endeavors the nation over to target national shopper
rather confining themselves as provincial retailers. This has cleared a path for new potential
outcomes of internet retailing i.e. multi-channel, Omni channel and sites.

Indian footwear industry is rising as the most requested shopping classification; brands like Bata,
Campus Shoes, Action Shoes, Puma are going on the web and making a specialty market and
open doors for the other footwear retailers.
 CONCLUSION
Income
Revenue from operation 1956.92 1739.84
Other Income 4.46 3.73
Stock Adjustments 13.62 -5.16
Total Income 1975 1738.41
Expenditure
Raw Materials 896.63 720.67
Power & Fuel Cost 0 40.98
Depreciation 54.34 51.48
Employee Cost 214.08 172.21
Other Manufacturing Expenses 0 148.98
Selling and Admin Expenses 44.48 58.82
Miscellaneous Expenses 513.26 348.73

Total Expenses 1722.79 1541.87

Operating Profit 252.21 196.54
PBDIT 306.55 248.02
Interest 8.59 15.18
PBDT 297.96 232.84
Profit Before Tax 243.62 181.36
PBT (Post Extra-ord Items) 243.62 181.36
Tax 82.55 58.39
Reported Net Profit 161.07 122.97
Total Value Addition 771.82 769.72
Shares in issue (lakhs) 1203 1201.3
Earning Per Share (Rs) 13.39 10.24
Equity Dividend (%) 150 100
Book Value (Rs) 63.28 50.34
 Balance Sheet of Relaxo Footwears

In crore…

Mar 18 Mar-17

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 12.03 12.01
Reserves and Surplus 749.18 592.78
Total Shareholders Funds 761.21 604.79
NON-CURRENT LIABILITIES
Long Term Borrowings 39.26 69.81
Deferred Tax Liabilities [Net] 0 28.34

Other Long Term Liabilities 27.02 10.06

Long Term Provisions 7.76 7.26

Total Non-Current Liabilities 74.04 115.47

CURRENT LIABILITIES
Short Term Borrowings 86.09 60.89
Trade Payables 174.9 125.7
Other Current Liabilities 165.74 137.15
Short Term Provisions 6.75 23.14
Total Current Liabilities 433.48 346.88
Total Liability 1268.73 1067.14
ASSETS
Fixed Assets
Tangible Assets 662.44 480.08
Intangible Assets 0 61.22
Capital Work-In-Progress 0 61.91
Intangible Assets Under Development 0 0.51
Total Non-Current Assets 662.44 603.72
Non-Current Assets
Non-Current Investments 0.21 0.7
Long Term Loans And Advances 16.2 18.31
Other Non-Current Assets 9.25 0.13

Total Fixed Assets 25.66 19.14

CURRENT ASSETS
Current Investments 0.5 0
Inventories 313.93 290.21
Trade Receivables 192.35 123.71

Cash And Cash Equivalents 4 3.65

Short Term Loans And Advances 0.39 23.49
OtherCurrentAssets 69.46 3.22
Total Current Assets 580.63 444.28
Total Assets 1268.73 1067.14
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 0 64.48
CIF VALUE OF IMPORTS
Raw Materials 0 169.23
Stores, Spares And Loose Tools 0 1.3
Trade/Other Goods 0 37
 Capital Goods 0 13.75
Expenditure In Foreign Currency 0 6.48
FOB Value Of Goods - 46.85
Bonus Equity Share Capital - 11.11
Non-Current Investments Unquoted Book Value - 0.7

SECTION – 2

VALUATION OF INVENTORY

Crude Materials, Packing Materials, Consumables, Stores and Spares

These are esteemed at lower of cost and net feasible esteem. The expenses of inventories involve
all expenses of procurement and different expenses acquired in conveying the inventories to their
present area and condition. The expenses of procurement comprise of the price tag including
obligations and duties (other than those thusly recoverable from the exhausting experts), cargo
internal and other consumption specifically inferable from the securing. Exchange rebates,
discounts and other comparable things are deducted in deciding the expenses of buy.
Notwithstanding, materials and different things held for use in the creation of inventories are not
composed down beneath cost if the completed items in which they will be joined are relied upon
to be sold at or above cost. Cost is resolved on weighted normal premise.

In the financial year 2017-18 inventory is increased by 23.72 crore which is 8.17%
more than last year which shows the effectiveness of the overall production of the
company.

Depreciation and Amortization

Devaluation is given star rata to the time of utilization on Straight Line Method (SLM) in light of
the evaluated valuable existences of the advantages, which have been resolved according to
Schedule II of Companies Act, 2013. The helpful lives in regard of the beneath resources are
unique in relation to the valuable lives as endorsed under Part C of Schedule II of the Companies
Act, 2013, which territories u0nder he valuable existences of above resources have been
evaluated by the administration thinking about the specialized examination, mechanical
obsolesce, genuine use, verifiable information in regards to breakdown, uses and support and
industry information accessible on record. Parts having valuable lives not the same as the life of
parent resources are devalued over the helpful existence of the parts.

In the given financial year 2017-18 depreciation provided on fixed assets is 54.34
crore which is 2.86 crore more than last years. Percentage increase in the
depreciation charged is 5.55%. That means in the financial year 2017-18 Relaxo ltd
invest more in fixed assets, which results in more depreciation.

SHARE CAPITAL
Share capital consists of all funds raised by a company in exchange for shares of either common or preferred shares of stock. The
amount of share capital or equity financing a company has can change over time. A company that wishes to raise more equity can
obtain authorization to issue and sell additional shares, thereby increasing its share capital.

Capital of Relaxo Footwear Ltd. is increased by o.o2 crore in the financial year
2017-18 from 12.o1 to 12.o3.

Revenue Recognition
Income is perceived to the degree that it is likely that the financial advantages will stream to the
organization and the income can be dependably estimated and there exists sensible sureness of its
recuperation.

Sale of Goods

Deals are perceived when the generous dangers and prizes of proprietorship in the products are
exchanged to the endless supply of products and are perceived net of exchange rebates, returns,
deals duties and extract obligation. Pay from Energy Generation Income from vitality produced
through Wind Power Generation Plant is perceived based on net power conveyed according to
control buy understanding marked with Discom(s).

Interest Income

Premium wage is accounted on a period extent premise considering the sums contributed and
the rate of interest.
Dividend Income

Profit wage is perceived when the privilege to get is built up.

In the financial year 2017-18 Relaxo Footwear Ltd results in the more profit than
last year profit by Rs 58.53 Crore. Earnings per share are also increased by 30.76%
from Last year earning. Interest paid by Concern Company is also reduced which
results in the more increment in the revenue and profits of the company.

Fixed Asset
Tangible assets

Tangible fixed assets are held with the intention of being used for the purpose of producing
goods or providing services and is not held for sale in the normal course of business.

Tangible fixed assets are stated at historical cost of acquisition i.e. cost less accumulated
depreciation and impairment loss, if any.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it
increases the future benefits from the existing asset beyond its previously assessed standard of
performance.

Gains or losses arising from disposal of tangible assets are measured as the difference between
the net disposal proceeds and the carrying amount of the assets. Such Gains or losses are
recognized in the statement of profit and loss when the assets are disposed off.

Intangible Assets

Intangible assets are carried at cost less accumulated amortization and impairment loss, if any.
The cost of an intangible asset comprises its purchase price including import duties and other
taxes (other than those subsequently recoverable from the taxing authorities), and any directly
attributable expenditure on making the asset ready for its intended use.

Intangible Assets under development are shown separately at cost incurred in bringing the asset
to its present condition. Subsequent expenditure on an intangible asset after its purchase /
completion is recognized as an expense. when incurred unless it is probable that such
expenditure will enable the asset to generate future economic benefits in excess of its originally
assessed standards of performance and such expenditure can be measured and attributed to the
asset reliably, in such case such expenditure is added to the cost of the asset.
From the given set of information in the Balance Sheet of Relaxo Footwear Ltd ,It is
concluded that company has invested their money for purchasing more machinery
and we can say spend money on capital expenditure to increase the efficiency of
manufacturing concern. Percentage increase in the amount of fixed assets is
37.83%s.