Drish Shoes Limited- Summr Training Ppt (2)

8/6/2019 Drish Shoes Limited- Summr Training Ppt (2)

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By:

Sumandeep kaur



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.



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



Source: www.leatherindia.org



Source: CMIE database



Turnover of FootwearIndustry

Source: CMIE Database



Source : footwearinfoline.com



Computer aided design was introduced inthe shoe industry in 1970s.

2D and 3D versions of CAD/CAM systemsused 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 potentialfor 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 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



Raw Hides

Wet Blue

Crust Leather

Finished

Leather



RATIO

ANALYSIS



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.



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



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



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



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



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



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



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



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



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 %



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.



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.

Drish Shoes Limited- Summr Training Ppt (2)

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