By:

Sumandeep kaur
 India ranks second among the footwear
producing countries next to China.

 Major competitors in the export market for

leather footwear are China , Spain and Italy.

 Major production centres- Chennai, Delhi,

Agra, Kanpur, Mumbai,
Calcutta and Jalandhar.
 The Indian footwear retail market is expected to grow at a
CAGR of 20% for the period spanning from 2008 to 2011.

 The industry is dominated by small scale units with the

total production of 55%.

 In a recent study by NMCC, highlighted that total

employment in this sector would amount to 2.5 million.

Source : footwearinfoline.com
Source: www.leatherindia.org
Source: CMIE database
Turnover of Footwear
Industry

Source: CMIE Database

Source : footwearinfoline.com
 Computer aided design was introduced in
the shoe industry in 1970s.

 2D and 3D versions of CAD/CAM systems

used in the shoe industry.
 Duty free import of hides and skins is permitted.

 Central excise duty reduced from 16% to 8%.

 The government of India in its Foreign Trade Policy for 2000-

2009 has identified in this industry the immense potential
for export growth and employment generation prospects.
Source: www.leatherindia.org
Source : www.leatherindia.org
 Drish Shoes Limited was established in 1988.

 Total sales turnover of Rs 131 crores.

 Work force-1500 skilled workers & trained leather

and footwear technologists.

 A big strength of the company is its ability to procure

the best raw material available in the country.
source: www.drish.com
 Strongly focused on innovation, R & D and
Quality Control.

 Started its exports in 1988 in Germany.

 Export-Germany, Italy, France, Spain, Austria,

Hong Kong, China & Singapore.

 Import- Argentina, Germany, Brazil, France,

Italy ,Singapore, China & Hong
Kong.
 Raw Hides

Wet Blue

Crust Leather

Finished
Leather
 Lakhani India Ltd was originally incorporated as
Lakbros Shoe Co. Pvt. Ltd. on December
28,1981.

 The main object of the company was to

manufacture Leather and Non Leather Shoes.

 Lakhani Group is amongst the largest footwear

manufacturers of India with a production of
1,75,000 pairs of footwear per day.
 RATIO
ANALYSIS
 To analyze the short term as well as long
term liquidity position of the company.

 To Study the Financial position of Company.

 To check performance of the companies.

 6
5.66
5 .4 5
5 4 .9 1
4.63
Current
4
Ratio
in times
3

2 1.97
1.67
1 .3 2 1 .4 4
1

0
2006 2 0 0 Year
7 2008 2009

L a k h a n i I n d i a L tdD.r i sh sh o e s l td
 Quick Ratio
1
0 .9 0 .92
0 .8
0 .7 0.69
Quick
0 .6
Ratio
in times 0 .5 0 .48
0 .4 5 2
0 .4 0 .4
0 .3 4 9
0 .3
0.247
0 .2
0 .1
0
2006 2 0 0 Year
7 2008 2009

L a k h a n i I n d i a L tdD .r i sh sh o e s l td
 Debt Equity Ratio

3
2 .6 1
2.5

Debt 2 1 .9 4
Equity 1.58
1.5 1.52 1.51 1.42
Ratio in
times
1

0.5 0.55 0.51

0
2006 2 0 0 7 Year 2008 2009

L a k h a n i I n d i a L td . D r i sh sh o e s l td
 Interest Coverage Ratio

2 .5
2.32
2 1 .9 5

Interest 1.64
1 .5
Coverage 11 .. 22 72
Ratio
1
0 .8 5

0 .5 0.43 0.36

0
2006 2 0 0Year
7 2008 2009

L a k h a n i I n d i a L tdD. ri sh sh o e s l td
 Earning Per Share
6

5 5

4 4 .0 9
EPS
in Rs 3
2.23
2 1.83
1 .7 8
1 1 0 .8 8

0 -0 . 0 6
2006 2007 2008 2009
-1 Year

L a k h a n i I n d i a L td . D r i sh sh o e s l td
 Debtors Turnover Ratio
50
45 4 3 .5 9
40 39.26
35 33.65
Debtor 30 31.45
Turnover 25 26.43
Ratio in 22.83 21.7 2 2 .5
times 20
15
10
5
0
2006 2 0 0 Year
7 2008 2009

L a k h a n i I n d i a L tdD. r i sh sh o e s l td
 3 .5
3 .14
3
2.73 2 .8 2
2 .55 2.53 2 .6 5
2 .5
2 .32
Inventory
Turnover
2
Ratio in 1 .5
times
1 0 .88
0 .5
0
2006 2 0 0Year
7 2008 2009

L a k h a n i I n d i a L tdD.r i sh sh o e s l td
 20
18 1 8 .3 5
16
14 1 4 .5 9
Creditor 1 2 12.45
11.39 11.55
Turnover 1 0
Ratio in 98 .. 59 22
times 8 7.77
6
4
2
0
2006 2 0 0 7 Year 2008 2009

L a k h a n i I n d i a L tdD .r i sh sh o e s l td
 1.4
1.27
1.2
1 1 .0 09 0.974 1.0 3
0.8 0.82
Net Profit 0.755
in % 0.6
0 .5 3
0.4
0.2
0
-0 . 2 2006 2007 2008 2009
-0 . 3 3
-0 . 4
Year
-0 . 6

L a k h a n i I n d i a L tdD. r i sh sh o e s l td
 The short term solvency position of Drish Shoes
Limited is better.

 Drish Shoes Limited is using more amount of

outsiders funds.

 Profitability position of Lakhani India Limited is

better.

 EPS trend of Drish Shoes Limited is better than

Lakhani India Limited.
 As compared to Lakhani India Ltd. debtor
turnover ratio is low.

 As compared to Lakhani India Ltd. Creditor

turnover ratio is high.

 As compared to Lakhani India Ltd. Inventory

turnover ratio is low.