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8/6/2019 Drish Shoes Limited- Summr Training Ppt (2)
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By:
Sumandeep kaur
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India ranks second among the footwearproducing countries next to China.
Major competitors in the export market forleather footwear are China , Spain and Italy.
Major production centres- Chennai, Delhi,
Agra, Kanpur, Mumbai,Calcutta and Jalandhar.
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The Indian footwear retail market is expected to grow at aCAGR of 20% for the period spanning from 2008 to 2011.
The industry is dominated by small scale units with thetotal production of 55%.
In a recent study by NMCC, highlighted that totalemployment in this sector would amount to 2.5 million.
Source : footwearinfoline.com
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Source: www.leatherindia.org
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Source: CMIE database
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Turnover of FootwearIndustry
Source: CMIE Database
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Source : footwearinfoline.com
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Computer aided design was introduced inthe shoe industry in 1970s.
2D and 3D versions of CAD/CAM systemsused in the shoe industry.
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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 potentialfor export growth and employment generation prospects.
Source: www.leatherindia.org
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Source : www.leatherindia.org
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Drish Shoes Limited was established in 1988.
Total sales turnover of Rs 131 crores.
Work force-1500 skilled workers & trained leatherand 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
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Raw Hides
Wet Blue
Crust Leather
Finished
Leather
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RATIO
ANALYSIS
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To analyze the short term as well as longterm liquidity position of the company.
To Study the Financial position of Company.
To check performance of the companies.
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1 . 3 1 . 41 . 6
1 . 9
5 . 4
4 . 94 . 6
5 . 6
0
1
2
3
4
5
6
2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
L a k h a n i I n d i a L t d .D r i sh sh o e
Year
Current
Ratio
in times
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Quick Ratio
0 .0 . 4
0 . 6
0 . 9
0 .3 4
0 . 4 5
0 . 2 4
0 . 4
0
0 . 1
0 . 2
0 . 3
0 . 4
0 . 5
0 . 6
0 . 7
0 . 8
0 . 9
1
2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
L a k h a n i I n d i a L td .D r i sh s h o e
Quick
Ratio
in times
Year
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Debt Equity Ratio
0 . 5 0 . 5
1 . 5
1 . 9
1 . 5 1 . 5 1 . 4
2 . 6
0
0 . 5
1
1 . 5
2
2 . 5
3
2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
L a k h a n i I n d ia L td . D r i sh sh o e s
Year
Debt
Equity
Ratio in
times
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Interest Coverage Ratio
2 . 3
1 . 6
1 . 9
1 . 2
0 . 40 . 3
0 . 8
1 . 2
0
0 . 5
1
1 . 5
2
2 . 5
2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
L a k h a n i I n d i a L t d .D r i sh sh o e
Year
Interest
Coverage
Ratio
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Earning Per Share
2 . 2
4 . 0
0 . 8
1 . 8
5
1
1 . 7
-0 . 0
- 1
0
1
2
3
4
5
6
2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
L a k h a n i In d i a L td . D r ish s h o e s
Year
EPS
in Rs
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Debtors Turnover Ratio
3 1 . 4
2 6 . 4
3 3 . 6
4 3 . 5
2 2 . 8
3 9 . 2
2 1 . 2 2 .
0
5
1 0
1 5
2 0
2 5
3 0
3 5
4 0
4 5
5 0
2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
L a k h a n i In d i a L td .D r ish sh o e
Year
Debtor
Turnover
Ratio in
times
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3 . 1
0 . 8
2 . 5
2 . 8
2 . 5
2 . 3
2 . 7 2 . 6
0
0 . 5
1
1 . 5
2
2 . 5
3
3 . 5
2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
L a k h a n i In d i a L td .D r i sh sh o e
Year
Inventory
Turnover
Ratio intimes
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9 . 5
1 1 . 31 2 . 4
1 4 . 5
8 . 97 . 7
1 1 . 5
1 8 . 3
0
2
4
6
8
1 0
1 2
1 4
1 6
1 8
2 0
2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
L a k h a n i In d i a L t d .D r ish sh o e
Year
Creditor
Turnover
Ratio intimes
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0 . 5
0 . 8
1 . 2
1 . 01 . 0 0
0 . 7 5
0 . 9 7
- 0 . 3
- 0 . 6
- 0 . 4
- 0 . 2
0
0 . 2
0 . 4
0 . 6
0 . 8
1
1 . 2
1 . 4
2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
L a k h a n i In d i a L td .D r ish sh o e
Year
Net Profit
in %
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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 isbetter.
EPS trend of Drish Shoes Limited is better thanLakhani India Limited.
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As compared to Lakhani India Ltd. debtorturnover ratio is low.
As compared to Lakhani India Ltd. Creditorturnover ratio is high.
As compared to Lakhani India Ltd. Inventoryturnover ratio is low.
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