relaxo footwears ltd 2012

7/31/2019 Relaxo Footwears Ltd 2012

1/56


2/56


3/56


4/56


5/56


6/56


7/56


8/56


9/56


10/56


11/56


12/56


13/56


14/5612

ANNUAL REPORT 2011-12

NOTICE1RWLFHLVKHUHE\JLYHQWKDW WK$QQXDO*HQHUDO0HHWLQJRIWKH

0HPEHUV RI 5(/$;2 )227:($56 /,0,7(' ZLOO EH KHOG DW

6UL 6DWK\D 6DL ,QWHUQDWLRQDO &HQWUH /RGKL 5RDG ,QVWLWXWLRQDO

$UHD3UDJD WL9LKDU1HZ 'HOKL RQ0RQGD\WKGD\RI

6HSWHPEHUDWDPWRWUDQVDFWWKHIROORZLQJEXVLQHVV

25',1$5


15/5613

RELAXO FOOTWEARS LIMITED

'HOKLJLYLQJDWOHDVWGD\VQRWLFHSULRUWRWKHGDWH

RI$QQXDO *HQHUDO 0HHWLQJ WR HQDEOH WKH 0DQDJHPHQW WR

FROOHFWDQGNHHSWKHLQIRUPDWLRQUHDG\

9,, ,QRUGHU WRDYRLG WKHLQFLGHQFHRIIUDXGXOHQWHQFDVKPHQWRI

GLYLGHQGZDUUDQWVWKH0HPEHUVKROGLQJVKDUHVLQSK\VLFDOIRUPDUHUHTXHVWHGWRSURYLGHWKHLU%DQN$FFRXQW1XPEHU

1DPHDQG$GGUHVVRIWKH%DQN%UDQFKWRWKH&RPSDQ\RU

.DUY\ WRHQDEOHWKHPWR LQFRUSRUDWHWKHVDPHLQ GLYLGHQG

ZDUUDQW

0HPEHUVKROGLQJVKDUHVLQHOHFWURQLFIRUPPD\SOHDVHQRWH

WKDWWKH%DQN$FFRXQWGHWDLOVDQGGLJLW0,&5&RGHRIWKHLU

%DQNHUV DV QRWHG LQ WKH UHFRUGV RI WKHLUGHSRVLWRU\ VKDOO

EHXVHGIRUWKHSXUSRVHRIUHPLWWDQFHRIGLYLGHQGWKURXJK

1DWLRQDO(OHFWURQLF&OHDULQJ6HUYLFH1(&6RUIRUSULQWLQJRQ

GLYLGHQGZDUUDQWVZKHUHYHUDSSOLFDEOH7KHUHIRUHPHPEHUV

DUH UHTXHVWHG WR XSGDWH WKHLU %DQN $FFRXQW SDUWLFXODUV

&KDQJH RI DGGUHVV DQG RWKHUGHWDLOV ZLWKWKHLU UHVSHFWLYH

'HSRVLWRU\3DUWLFLSDQWV

9,,, 0HPEHUVDUHKHUHE\ LQIRUPHGWKDW GLYLGHQGVZKLFK UHPDLQ

XQFODLPHGXQHQFDVKHGRYHUDSHULRGRI


16/5614


(;3/$1$725


17/56


18/5616


VWDJHRIFRPPLVVLRQLQJDIXOOIOHGJHGPDQXIDFWXULQJXQLW

LQFXUUHQWILQDQFLDO\HDU

/2*,67,&

7RV\QFKURQLVHZLWKWKHSDFHRIJURZWKRIWKH&RPSDQ\

/RJLVWLF GHSDUWPHQW LV EHLQJ UHYDPSHG E\ DGGLQJ XSGLVWULEXWLRQ LQIUDVWUXFWXUH ,W KDV SOD\HG SLYRWDO UROH LQ

WKH JURZWK RI WKH &RPSDQ\ ,W HQVXUHV DYDLODELOLW\ RI

ULJKWJRRGVDWULJKWSODFHDWULJKWWLPH7KHFRPSDQ\KDV

HIIHFWLYH ORJLVWLFGHSDUWPHQW ZKLFK LV VXSSRUWHG E\ ILYH

ZDUHKRXVHDFURVV,QGLD7KH&RPSDQ\UHFHLYHG6XSSO\

&KDLQ/HDGHUDZDUGIURP,QGXVWU\7HFKQRORJ\

0DQDJHPHQW0DJD]LQH

&5(',75$7,1*

7KH,&5$DQG&$5(KDYHDVVLJQHGWKHUDWLQJ$IRUORQJ

WHUPIXQGIDFLOLW\ DQG$ IRUVKRUWWHUP IXQG IDFLOLW\WR

\RXU&RPSDQ\ 7KHVHUDWLQJV UHSUHVHQWDGHTXDWH VDIHW\

RIFUHGLWIDFLOLWLHVJLYHQWRWKH&RPSDQ\

&25325$7(*29(51$1&(5(3257

7KH &RUSRUDWH *RYHUQDQFH 5HSRUW DV VWLSXODWHG XQGHU

&ODXVHRIWKH/LVWLQJ$JUHHPHQWIRUPVSDUWRIWKLV5HSRUW

7KHUHTXLVLWHFHUWLILFDWHIURPWKH6WDWXWRU\$XGLWRUVRIWKH

&RPSDQ\ 0V *XSWD 'XD &KDUWHUHG $FFRXQWDQWV

FRQILUPLQJ FRPSOLDQFH ZLWKWKH FRQGLWLRQV RI &RUSRUDWH

*RYHUQDQFHDVVWLSXODWHGXQGHUWKHDIRUHVDLG&ODXVH

LVDWWDFKHGWR&RUSRUDWH*RYHUQDQFH5HSRUW

),;(''(326,76

7KH &RPSDQ\ KDV QRW LQYLWHG RU DFFHSWHG DQ\ )L[HG

'HSRVLWVIURP3XEOLFGXULQJWKH\HDUXQGHUUHYLHZ

',5(&72565(63216,%,/,7


19/5617


DSSUHFLDWLRQDQGJUDWLWXGHWRWKHEDQNVIRUWKHLUFRQWLQXHG

DQGWLPHO\DVVLVWDQFHLQPHHWLQJWKH&RPSDQ\VUHVRXUFH

UHTXLUHPHQW )LQDOO\ \RXU 'LUHFWRUV DFNQRZOHGJH WKH

GHGLFDWHG VHUYLFHV UHQGHUHG E\ DOO HPSOR\HHV RI WKH

&RPSDQ\

)RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV

5$0(6+.80$5'8$ 08.$1'/$/'8$

0DQDJLQJ'LUHFWRU :KROH7LPH'LUHFWRU

3ODFH'HOKL

'DWH0D\

$QQH[XUHWRWKH'LUHFWRUV5HSRUW

$ &216(59$7,212)(1(5*


20/5618


,QGXVWU\2YHUYLHZ

'XULQJWKH\HDUXQGHUUHYLHZ,QGLDV(FRQRPLFJURZWKUDWH

VORZHGWRDJDLQVWLQWKHSUHYLRXVWZRILQDQFLDO

\HDUV7KHHFRQRP\ZLWQHVVHGKLJKOHYHORILQIODWLRQYRODWLOLW\

LQ ILQDQFLDO PDUNHWV DQG FRQFHUQV RQ JOREDO VORZGRZQ

'HVSLWHDOOWKHVHIDFWVIRRWZHDUEHLQJWKHEDVLFFRQVXPHU

QHFHVVLW\WKH,QGLDQGRPHVWLFIRRWZHDUVHFWRUKDVJURZQDW

DFRPSRXQGHGDQQXDOJURZWKUDWH&$*5RIDERXW

,QGLDDWSUHVHQWSURGXFHVQHDUO\ELOOLRQSDLUVDQQXDOO\WKDW

LVHVWLPDWHGDWDURXQG ` FURUHV IURPRUJDQL]HG DQG

XQRUJDQL]HGVHFWRU7KHIRRWZHDULQGXVWU\LVODERXULQWHQVLYH

LQGXVWU\ ZKLFK KDV EHHQ JHQHUDWLQJ HPSOR\PHQW IRU RYHU

ODFSHRSOHDQGLVVLJQLILFDQWO\FRQWULEXWLQJWRWKHJURZWK

RI ,QGLDQ HFRQRP\ 7KH ORZ SURGXFWLRQ FRVW DEXQGDQW

DYDLODELOLW\ RI LQSXWV H[SDQGLQJ FRQVXPSWLRQ PDUNHW ZLWK

JURZLQJIDVKLRQFRQVFLRXVQHVVDPRQJDOOVWUDWDRIVRFLHW\

KDVVHWWKH,QGLDQIRRWZHDU,QGXVWU\DWJURZLQJSODWIRUP

%XVLQHVV2YHUYLHZ

7KHUHDUHQHDUO\ XQLWVHQJDJHGLQWKHSURGXFWLRQRI

IRRWZHDULQ,QGLDDQGWKH\H[LVWERWKLQWKHWUDGLWLRQDODQG

PRGHUQ VHFWRU 7KH WUDGLWLRQDO VHFWRU FRPSULVHV PRVWO\

VPDOO VFDOH XQLWV ZKLFK DFFRXQWV IRU RYHU RI WKH

WRWDOSURGXFWLRQ7KH PRGHUQ VHFWRU RQ WKH RWKHUKDQGLV

PDGHXS RIFRPSDQLHVZLWK PRUHDGYDQFHGWHFKQRORJLFDO

LQIUDVWUXFWXUH DQG FRQWHPSRUDU\ DWWLWXGHV DQG ZLWK LQ

KRXVHGHVLJQ XQLWV WKDW DUHFDWHULQJ WR VKLIWLQJ FRQVXPHU

SUHIHUHQFHV

7KHFRPSDQ\UHFRUGHGDJURZWKRILQUHYHQXHDQG

LQSURILWDIWHUWD[HVGHVSLWHWKHSUHVVXUHRIUDZPDWHULDOSULFH

7KLVZDVSRVVLEOHGXHWRWKHIRFXVRQWKHLQWURGXFWLRQRIQHZ

SURGXFWVDQGDFRQWLQXLQJWKUXVWXSRQWKHUHWDLODQGH[SRUW

EXVLQHVV LQLWLDWLYH7RGD\ 5HOD[R )RRWZHDUV /LPLWHG LV WKH

QGODUJHVWIRRWZHDUFRPSDQ\LQ,QGLDPHDVXUHGLQWHUPVRI

YDOXHDQGLWVEUDQGVYL]5HOD[R)OLWHDQG6SDU[ZLWKDOPRVW

SDULW\QRZKDYHHQRUPRXVSRWHQWLDORIJURZWKLQIRUWKFRPLQJ

\HDUV:LWK DIRFXVWRZDUGVFUHDWLQJVWURQJEUDQGYLVLELOLW\

WKH5HOD[R5HWDLO6KRSSHKDVDOVRSOD\HGDQLPSHUDWLYHUROH

LQWKHJURZWKRIWKHFRPSDQ\7KHFRPSDQ\KDVDOVREHHQ

H[SDQGLQJLWV JHRJUDSKLFIRRWSULQW ZLWKD JURZWK RIH[SRUW

EXVLQHVVLQ$VLDQDQG0LGGOH(DVW&RXQWULHV

MANAGEMENT DISCUSSION & ANALYSIS 7KUHDWV5LVNVDQGFRQFHUQV

2XUSURGXFWVIDFHFRPSHWLWLRQIURPWKHSURGXFWVRIJOREDO

HVWDEOLVKHG ,QGLDQ FRPSDQLHV DQG LW FRQWLQXHV WR H[HUW

SUHVVXUHRQWKHRSHUDWLRQV

:LWKWKHJURZLQJGHPDQGRIRXUSURGXFWVWKHUHLVDOZD\V

DULVNRIDYDLODELOLW\RIPDQSRZHUIRULQFUHDVLQJSURGXFWLRQ

OHYHOV7RPLWLJDWHWKLVULVNWKHFRPSDQ\KDVEHHQIRFXVLQJ

RQODERXUUHWHQWLRQSROLF\E\ZD\RIPRWLYDWLQJWKHPWKURXJK

FRQWLQXRXVWUDLQLQJSURJUDPVPRQHWDU\DZDUGVDQGEHWWHU

K\JLHQLFZRUNLQJHQYLURQPHQW

7KH IRUHLJQ H[FKDQJH ULVN LV KHGJHG E\ ZD\ RI IRUZDUG

FRQWUDFW

$SSURSULDWHSURFHGXUHVIRUULVNDVVHVVPHQWDQGPLWLJDWLRQ

LQRWKHUDUHDVDVZHOOKDYHEHHQODLGE\WKHFRPSDQ\WKHLU

DVVHVVPHQWV DUH UHYLHZHG E\ WKH PDQDJHPHQW IURP WLPH

WRWLPH

,QWHUQDO$XGLW&RQWURO6\VWHPV

7KH LQWHUQDO FRQWURO V\VWHP RI WKH FRPSDQ\ LV UHJXODUO\

UHYLHZHGE\WKH$XGLW&RPPLWWHHDQG%RDUGRI'LUHFWRUVRI

WKHFRPSDQ\ZKLFKDVVXUHRSWLPDOXWLOL]DWLRQRIUHVRXUFHV

UHOLDELOLW\RIILQDQFLDOUHSRUWLQJDQGFRPSOLDQFHZLWKDSSOLFDEOH

ODZV DQG UHJXODWLRQV 7KH 0DQDJHPHQW FRQWURO V\VWHP

HQVXUHVWLPHO\UHFRUGLQJDQGUHSRUWLQJRIDOOFRPPHUFLDODQG

ILQDQFLDOWUDQVDFWLRQVLQFRQIRUPLW\ZLWKJHQHUDOO\DFFHSWHG

$FFRXQWLQJSUDFWLFHV

7KHREVHUYDWLRQVDQGUHFRPPHQGDWLRQVRI$XGLW&RPPLWWHH

LQUHVSHFWRI ,QWHUQDO$XGLW RIWKH FRPSDQ\ DUH WDNHQ LQWR

FRQVLGHUDWLRQ E\ WKH %RDUG RI 'LUHFWRUV VR DV WR WDNH

DGHTXDWH IROORZ XS PHDVXUHV WR LPSOHPHQW WKH LGHQWLILHGLPSURYHPHQWRSSRUWXQLWLHV

2XWORRN

7KHRYHUDOORXWORRNRIWKHEXVLQHVVFRQWLQXHVWREHSRVLWLYH

ZLWK WKH VRIWHQLQJ RI UDZ PDWHULDO SULFHV FRQWLQXRXV

SURFHVVLPSURYHPHQWVDQGIXUWKHUVWUHQJWKHQLQJRI ORJLVWLF

LQIUDVWUXFWXUH


21/5619


CORPORATE GOVERNANCE REPORT$77+(+($572)7+(&25325$7(

&RUSRUDWH*RYHUQDQFHLVDERXWRXUFRPPLWPHQWWRKXPDQYDOXHV

LQEXVLQHVVDQGWUDQVODWHVLQWRHWKLFDOFRUSRUDWHFRQGXFW,WLVVWRU\

RID&RPSDQ\FKRRVHVWRPDQDJHLWVHOI&RUSRUDWH*RYHUQDQFH

LV FRQFHUQ RI PDQ\ WKH FRUSRUDWH DQG RWKHU VWUXFWXUHV LWV

FXOWXUHSROLFLHV DQG WKH PDQQHU LQZKLFK LWGHDOVZLWKYDULRXV

VWDNHKROGHUV 7LPHO\ DQG DFFXUDWH GLVFORVXUH RI LQIRUPDWLRQ

UHJDUGLQJ WKH ILQDQFLDO VLWXDWLRQ SHUIRUPDQFH RZQHUVKLS DQG

JRYHUQDQFHRIWKH&RPSDQ\LVDQLPSRUWDQWSDUWRI&RUSRUDWH

*RYHUQDQFH:KHQDGKHUHGWRDQGLPSOHPHQWHGLQWKHEHVWRI

VSLULWFRUSRUDWHJRYHUQDQFHFDQPHDVXUDEO\LPSDFWWKHDFWLYLWLHV

SURFHVVHVDQGSROLFLHVRIWKHRUJDQL]DWLRQDQGSRUWUD\VDSRVLWLYH

YLVLRQ WR LQYHVWRUV DQG HQKDQFH WKH WUXVW DQG FRQILGHQFH RI

WKH VWDNHKROGHUV ,W FDQ DOVR LQIOXHQFHLWV LPPHGLDWH FRUSRUDWH

HQYLURQPHQWDQGWKHVRFLHW\DWODUJHLQDSRVLWLYHZD\DQGKDYHD

KHDOWK\LPSDFWRQWKHQDWLRQDOHFRQRP\

$W5HOD[R)RRWZHDUV/LPLWHGZHIXOO\FRPSO\ZLWKDQGLQGHHGJR

EH\RQGDOORIWKHP:HEHOLHYHWKDWVRXQGFRUSRUDWHJRYHUQDQFH

LVYLWDOIRUUHWDLQLQJVWDNHKROGHUIDLWKDQGLQZLQQLQJQHZLQYHVWRU

WUXVW6RPHRIWKHVDOLHQWSULQFLSOHVRI&RUSRUDWH*RYHUQDQFHDW

5HOD[R)RRWZHDUV/LPLWHGDUHVDWLVI\LQJQRWMXVWWKHOHWWHUEXWWKH

VSLULWRIODZWUDQVSDUHQF\LQFRQGXFWDQGFRPPXQLFDWLRQPDNLQJ

DFOHDUGLVWLQFWLRQEHWZHHQSHUVRQDOFRQYHQLHQFHVDQGFRUSRUDWH

UHVRXUFHVFODULW\DQG WLPHOLQHVVLQGLVVHPLQDWLRQRI LQIRUPDWLRQ

FRPSOLDQFH ZLWK DOO ODZV DQG DQ HWKLFDO DQG KRQHVW FRUSRUDWH

VWUXFWXUHWKDWLVGULYHQVROHO\E\EXVLQHVVFRQVLGHUDWLRQV

3+,/263+


22/5620


&200,77((62)7+(%2$5'2)',5(&7256$621

, $XGLW&RPPLWWHH

,, 6KDUHKROGHUV,QYHVWRUV*ULHYDQFHVDQG6KDUH7UDQVIHU

&RPPLWWHH

,,, 5HPXQHUD WLRQ&RPPLWWHH

, $8',7&200,77((

7KH&RPSDQ\FRQVWLWXWHGWKH$XGLW&RPPLWWHHLQOLQH

ZLWKWKHUHTXLUHPHQWRI6HFWLRQ$RI&RPSDQLHV

$FWUHDGZLWK&ODXVHRIWKH/LVWLQJ$JUHHPHQW

7(5062)5()(5(1&(

D 2YHUVHHLQJ&RPSDQ\VILQDQFLDOUHSRUWLQJSURFHVVHV

DQGWKHGLVFORVXUHRILWVILQDQFLDOLQIRUPDWLRQWRHQVXUH

WKDWWKHILQDQFLDOVWDWHPHQWLVFRUUHFWVXIILFLHQWDQG

FUHGLEOH

E 5HYLHZLQJZLWKWKH0DQDJHPHQWWKHDQQXDOILQDQFLDOVWDWHPHQWV EHIRUH VXEPLVVLRQ WR WKH %RDUG IRU

DSSURYDO

F 'LVFXVVLRQDQGUHYLHZRISHULRGLFDXGLWUHSRUWV

G 'LVFXVVLRQZLWK([WHUQDO$XGLWRUVDERXWWKHVFRSHRI

DXGLWLQFOXGLQJWKHREVHUYDWLRQVRIWKH$XGLWRUV

H $SSURYLQJ LQWHUQDO DXGLW SODQV DQG LQWHUQDO FRQWURO

IXQFWLRQDQGUHYLHZLQJWKHHIILFDF\RIWKHIXQFWLRQV

7KH$ XGLW &RPPLWWHH LV HPSRZHUHG SXUVXD QW WR WKH

WHUPVRIUHIHUHQFHWR

,QYHVWLJDWHDQ\DFWLYLW\ ZLWKLQLWVWHUPVRIUHIHUHQFH

DQG WR VHHN DQ\ LQIRUPDWLRQ LW UHTXLUHV IURP DQ\HPSOR\HH

2EWDLQOHJDORURWKHULQGHSHQGHQWSURIHVVLRQDODGYLFH

DQG WR VHFXUH WKH DWWHQGDQFH RI RXWVLGHUV ZLWK

UHOHYDQWH[SHUWLVHZKLFKLVFRQVLGHUHGQHFHVVDU\

&20326,7,21$1'$77(1'$1&(

7KH$XGLW&RPPLWWHHFRPSULVHGWKUHH'LUHFWRUVQDPHO\

0U3DQNDM6KULPDOL,QGHSHQGHQW'LUHFWRUDQG&KDLUPDQ

RIWKH&RPPLWWHH0U6.6DSUD,QGHSHQGHQW'LUHFWRU

DQG0U1LNKLO'XD([HFXWLYH'LUHFWRU

7KH GHWDLOV RI WKH PHHWLQJV DQG WKH DWWHQGDQFH RI

PHPEHUVRIWKH&RPPLWWHHLQWKHPHHWLQJVKHOGGXULQJ

WKH)LQDQFLDO\HDUDUHJLYHQEHORZ

1DPHRI

0HPEHUV

1RRI

0HHWLQJVKHOG

1RRI

0HHWLQJV

DWWHQGHG

0U3DQNDM6KULPDOL

0U6.6DSUD

0U1LNKLO'XD

0HPEHUVRIWKH$XGLW&RPPLWWHHKDYHUHTXLVLWH)LQDQFLDO

DQG0DQDJHPHQWH[SHUWLVH7KH&RPSDQ\6HFUHWDU\RI

WKH&RPSDQ\DFWVDVWKH6HFUHWDU\RIWKH&RPPLWWHH

,, 6+$5(+2/'(56,19(67256*5,(9$1&($1'

6+$5(75$16)(5&200,77((

7KH&RPSDQ\KDVFRQVWLWXWHG6KDUHKROGHUV,QYHVWRUV

*ULHYDQFHDQG6KDUH7UDQVIHU&RPPLWWHHWRVSHFLILFDOO\

ORRN LQWR WKH UHGUHVVDO RI 6KDUHKROGHUV DQG ,QYHVWRUV

FRPSODLQWV

7(5062)5()(5(1&(

7KH&RPPLWWHHVXSHUYLVHVWKHPHFKDQLVPIRUUHGUHVVDO

RI LQYHVWRUVJULHYDQFHDQG HQVXUHV FRUGLDO LQYHVWRUV

UHODWLRQV 7KH &RPPLWWHH SHUIRUPV WKH IROORZLQJ

IXQFWLRQV

7UDQVIHUWUDQVPLVVLRQRIVKDUHV

6SOLWXSVXEGLYLVLRQDQGFRQVROLGDWLRQRIVKDUHV

,VVXHRIQHZDQGGXSOLFDWHVKDUHFHUWLILFDWHV

5HJLVWUDWLRQ RI3RZHURI$WWRUQH\V3UREDWHV/HWWHU

RIWUDQVPLVVLRQRURWKHUGRFXPHQWV

7R RSHQ FORVH %DQN $FFRXQWV RI WKH &RPSDQ\

IRUUHPLWWDQFHRIGLYLGHQGDQGLVVXHLQVWUXFWLRQVWR

EDQNIURPWLPHWRWLPHLQWKLVUHJDUG

7RORRNLQWRWKHUHGUHVVDORIVKDUHKROGHUVFRPSODLQWV

DQGHQTXLULHV

$Q\ DOOLHG PDWWHU RXW RI DQG LQFLGHQWDO WR WKHVH

IXQFWLRQV

&20326,7,21$1'$77(1'$1&(

7KH&RPPLWWHHFRPSULVHGWKUHH'LUHFWRUV0U6.6DSUD

1RQ([HFXWLYH,QGHSHQGHQW'LUHFWRUDQG&KDLUPDQRIWKH

&RPPLWWHH0U5DPHVK.XPDU'XD0DQDJLQJ'LUHFWRU

DQG0U0XNDQG/DO'XD:KROH7LPH'LUHFWRU

'XULQJWKHILQDQFLDO\HDUWKUHHPHHWLQJVRIWKH

&RPPLWWHHZHUHKHOGDQGWKHDWWHQGDQFHRIPHPEHUV

DWWKHPHHWLQJVLVJLYHQEHORZ

1DPHRI0HPEHUV 1RRI

0HHWLQJV

KHOG

1RRI

0HHWLQJV

DWWHQGHG

0U6.6DSUD

0U5DPHVK.XPDU'XD

0U0XNDQG/DO'XD

$OOFRPSODLQWVVXJJHVWLRQVDQGJULHYDQFHVDUHSURPSWO\

GHDOWZLWKDQGUHVROYHGZLWKLQGD\VXQOHVVWKHUHLVVRPHGLVSXWHDQGRURWKHUOHJDOFRQVWUDLQW

0U.DSLO*DUJ&RPSDQ\6HFUHWDU\LVWKH&RPSOLDQFH

2IILFHURIWKH&RPSDQ\

,,, 5(081(5$7,21&200,77((

7KH&RPSDQ\FRQVWLWXWHG5HPXQHUDWLRQ &RPPLWWHH

WRUHFRPPHQGWKH%RDUGRI'LUHFWRUVWKHFRPSHQVDWLRQ

DQG UHPXQHUDWLRQ RI 'LUHFWRUV DQG 6HQLRU 0DQDJHULDO

3HUVRQQHO

7(5062)5()(5(1&(

7KH UHPXQHUD WLRQ SROLF\R I WKH &RPSD Q\ LV GLUHFWHG


23/5621


WRZDUGVUHZDUGLQJSHUIRUPDQFHEDVHGRQSHULRGLFUHYLHZRISHUIRUPDQFHDQGDFKLHYHPHQWVDQGLVSULPDULO\EDVHGRQWKH

IROORZLQJFULWHULD

3HUIRUPDQFHRIWKH&RPSDQ\LWVGLYLVLRQVDQGXQLWV

7UDFNUHFRUGSRWHQWLDOSHUVRQDODWWLWXGHSHUIRUPDQFHRILQGLYLGXDO0DQDJHUDQGH[WHUQDOFRPSHWLWLYHHQYLURQPHQW

7KHUHPXQHUDWLRQSROLF\RIWKH&RPSDQ\LVLQOLQHZLWK,QGXVWU\VSUDFWLFH7KHREMHFWLYHRIWKHUHPXQHUDWLRQFRPPLWWHHLVWR

PRWLYDWHHPSOR\HHVWRH[FHOLQWKHLUSHUIRUPDQFHUHFRJQL]HWKHLUFRQWULEXWLRQDQGWRUHWDLQWDOHQWLQWKHRUJDQL]DWLRQ

&RPSRVLWLRQDQG$WWHQGDQFH

7KH&RPPLWWHHFRPSULVHGWKUHH1RQ([HFXWLYHFXP,QGHSHQGHQW'LUHFWRUV0U3DQNDM6KULPDOL&KDLUPDQRIWKH&RPPLWWHH

0U6. 6DSUDDQG 0U9LYHN.XPDU PHPEHUVRI WKH&RPPLWWHH 'XULQJ WKHILQDQFLDO \HDUQR PHHWLQJRI WKH

&RPPLWWHHZDVKHOG

'(7$,/62)5(081(5$7,2172',5(&7256)257+(),1$1&,$/


24/5622


$OO5HWXUQV5HSRUWVZHUHILOHGZLWKLQVWLSXODWHGWLPHZLWK

WKH6WRFN([FKDQJHVRWKHUDXWKRULWLHV

' &RPSOLDQFHRI&ODXVHRI/LVWLQJ$JUHHPHQW

7KH &RPSDQ\ KDV FRPSOLHG ZLWK WKH PDQGDWRU\

UHTXLUHPHQWVRI&ODXVHRIWKH/LVWLQJ$JUHHPHQW

( 1RQPDQGDWRU\UHTXLUHPHQW

7KH &RPSDQ\ DW SUHVHQW KDV DGRSWHG WKH QRQ

PDQGDWRU\ UHTXLUHPHQW ZLWK UHJDUG WR FRQVWLWXWLRQ RI

5HPXQHUDWLRQ &RPPLWWHHZKLFKKDV EHHQFRQVWLWXWHG

WRGHWHUPLQHWKHUHPXQHUDWLRQSDFNDJHRI:KROHWLPH

'LUHFWRUDQG6HQLRU0DQDJHPHQW3HUVRQQHO

) 3ROLF\IRU3UHYHQWLRQRI,QVLGHU7UDGLQJ

:LWK D YLHZ WR SUHYHQWLQJ WUDGLQJ RI VKDUHV RI WKH

&RPSDQ\ E\ DQ LQVLGHU RQ WKH EDVLV RI XQSXEOLVKHG

SULFH VHQVLWLYH LQIRUPDWLRQ WKH %RDUG KDV DSSURYHG

3ROLF\IRU3UHYHQWLRQRI,QVLGHU7UDGLQJLQSXUVXDQFHRI

WKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD3URKLELWLRQ

RI,QVLGHU7UDGLQJ5HJXODWLRQV8QGHUWKH3ROLF\LQVLGHUVDUHSURKLELWHGWRGHDOLQWKH&RPSDQ\VVKDUHV

ZKLOH LQ SRVVHVVLRQ RI XQSXEOLVKHG SULFH VHQVLWLYH

LQIRUPDWLRQ

5(&21&,/,$7,212)6+$5(&$3,7$/

$ TXD OLILHG 3UD FW LFLQJ &RPSDQ\ 6HFUHWDU\ FDUULHG RXW

TXDUWHUO\ H[DPLQDWLRQ RI 6HFUHWDULDO 5HFRUGV WR UHFRQFLOH

WKH WRWDO DGPLWWHG VKDUH FDSLWDO ZLWK 1DWLRQDO 6HFXULWLHV

'HSRVLWRU\/LPLWHG16'/DQG&HQWUDO'HSRVLWRU\6HUYLFHV

,QGLD/LPLWHG&'6/DQGWKHWRWDOLVVXHGDQGOLVWHGFDSLWDO

7KHDXGLWFRQILUPHGWKDWWKHWRWDOLVVXHGSDLGXSFDSLWDOZDV

LQDJUHHPHQWZLWKWKHDJJUHJDWHRIWRWDOQXPEHURIVKDUHVLQ

SK\VLFDOIRUPDQGWKHWRWDOQXPEHURIGHPDWHULDOL]HGVKDUHV

KHOGZLWK16'/DQG&'6/

&2'(2)&21'8&7

7KH&RPSDQ\KDVODLGGRZQD&RGHRI&RQGXFWIRUDOOWKH

%RDUG0HPEHUVDQG 6HQLRU0DQDJHPHQWRIWKH &RPSDQ\

7KH &RGH RI &RQGXFW LV DYDLODEOH RQ WKH ZHEVLWH RI WKH

&RPSDQ\ZZZUHOD[RIRRWZHDUFRP$OO%RDUG0HPEHUVDQG

6HQLRU 0DQDJHPHQW SHUVRQQHO KDYH DIILUPHG FRPSOLDQFH

ZLWK &RGH RI &RQGXFW $ GHFODUDWLRQ VLJQHG E\ WKH &KLHI

([HFXWLYH2IILFHULVJLYHQEHORZ

$OOWKH%RDUG0HPEHUVDQG6HQLRU0DQDJHPHQW3HUVRQQHO

KDYHDIILUPHGFRPSOLDQFHZLWKWKHSURYLVLRQVRIWKH&RGHRI

&RQGXFWRI5HOD[R)RRWZHDUV/LPLWHGLQWKH)LQDQFLDO


25/5623


0DUNHW3ULFH'DWD

7DEOHVKRZLQJPRQWKO\SULFHPRYHPHQWRQ%6(GXULQJWKH)LQDQFLDO


26/5624


'LVWULEXWLRQ3DWWHUQDVRQVW0DUFK

L 6KDUHKROGLQJSDWWHUQLQIRUPRIVL]H

6U

1R

1RRI(TXLW\

6KDUHVKHOG

1RRI

6KDUHKROGHUV

RIWRWDO

6KDUHKROGHUV

1RRI

6KDUHVKHOG

RI

WRWDO6KDUHV

DQGDERYH

727$/

LL 6KDUHKROGLQJSDWWHUQLQIRUPRI2ZQHUVKLS&DWHJRU\

6U

1R

&DWHJRU\ 1RRI

6KDUHKROGHUV

RIWRWDO

6KDUHKROGHUV

1RRI

6KDUHVKHOG

RI

WRWDO6KDUHV

3URPRWHUV

%RGLHVFRUSRUDWHV

5HVLGHQWLQGLYLGXDOV

+8)

&OHDULQJ0HPEHUV

1RQUHVLGHQW,QGLDQV

)RUHLJQ,QVWLWXWLRQDO,QYHVWRUV

7RWDO

'HPDWHULDOL]DWLRQRI6KDUHV

7KH VKDUHV RIWKH&RPSDQ\DUHXQGHUFRPSXOVRU\'HPDW 6FKHPH )RU WKH SXUSRVHRI GHPDWHULDOL]DWLRQ RIWKHVKDUHV WKH

&RPSDQ\KDVHQWHUHGLQWRWKH$JUHHPHQWVZLWKWZR'HSRVLWRULHV

1DWLRQDO6HFXULWLHV'HSRVLWRU\/LPLWHG16'/

&HQWUDO'HSRVLWRU\6HUYLFHV/LPLWHG&'6/

7KHGHWDLOVRIVKDUHVRIWKH&RPSDQ\LQGHPDWDQGSK\VLFDOIRUPVLVJLYHQEHORZ

'(0$7(5$/,6$7,212)6+$5(6$621

3DUWLFXODUV 1RRI6KDUHV RI3DLGXS&DSLWDO 1RRI6KDUHKROGHUV

1DWLRQDO6HFXULWLHV'HSRVLWRU\/LPLWHG

&HQWUDO'HSRVLWRU\6HUYLFHV,QGLD/WG

6+$5(6,1'(0$7)250

6+$5(6,13+


27/5625


7KH&RPSDQ\ DGGUHVVHVDOO FRPSODLQWVVXJJHVWLRQVJULHYDQFHVD QGRWKHU FRUUHVSRQGHQFHH[SHGLWLRXVO\ DQGUHSOLHV DUHVHQW

XVXDOO\ZLWKLQGD\VH[FHSWLQFDVHRIRWKHULPSHGLPHQWV7KH&RPSDQ\HQGHDYRXUVWRLPSOHPHQWVXJJHVWLRQVDVDQGZKHQ

UHFHLYHGIURPWKHLQYHVWRUV'XULQJWKH\HDUXQGHUUHYLHZDWRWDORILQYHVWRUV FRPSODLQWVZHUHUHFHLYHGDQGUHVROYHG

&RUSRUDWH,GHQWLW\1XPEHU&,1/'/3/&

3HU6KDUH'DWD

3DUWLFXODUV

1HW(DUQLQJ` LQ/DFV

&DVK(DUQLQJ` LQ/DFV

(36LQ`

&(36LQ`

'LYLGHQGLQFOXGLQJ,QWHULP

'LYLGHQGSHUVKDUHLQ`

'LYLGHQG3D\RXW

%RRN9DOXH3HU6KDUHLQ

)DFHYDOXH3HU6KDUHLQ

7KHUHZDV QRRXWVWDQGLQJ$'5V*'5V:DUUDQWVRU DQ\RWKHU FRQYHUWLEOHLQVWUXPHQWV FRQYHUVLRQV GDWHDQG OLNHO\ LPSDFW RQ

HTXLW\GXULQJWKH\HDUXQGHUUHYLHZ

7UDQVIHURIXQFODLPHGDPRXQWWR,QYHVWRU(GXFDWLRQDQG3URWHFWLRQ)XQG,(3)

3XUVXDQWWRWKHSURYLVLRQVRI6HFWLRQ$RIWKH&RPSDQLHV$FWWKHGLYLGHQGGHFODUHGE\WKH&RPSDQ\ZKLFKUHPDLQ

XQFODLPHGIRUDSHULRGRIVHYHQ\HDUVVKDOOEHWUDQVIHUUHGE\WKH&RPSDQ\WR,QYHVWRU(GXFDWLRQDQG3URWHFWLRQ)XQGHVWDEOLVKHG

E\WKH&HQWUDO*RYHUQPHQWXQGHUVHFWLRQ&RIWKH&RPSDQLHV$FWUHDGZLWKWKH,QYHVWRUV(GXFDWLRQDQG3URWHFWLRQ

)XQG$ZDUHQHVVDQG3URWHFWLRQRI,QYHVWRUV5XOH

'XULQJWKH\HDUXQGHUUHYLHZWKH&RPSDQ\KDVGHSRVLWHGDVXPRI`WRWKH,QYHVWRU(GXFDWLRQDQG3URWHFWLRQ)XQGLQ

UHVSHFWRIXQSDLGGLYLGHQGRI\HDUHQGHGRQ

2WKHUXVHIXOLQIRUPDWLRQIRUWKHVKDUHKROGHUV

L (TXLW\6KDUHVRIWKH&RPSDQ\DUHXQGHUFRPSXOVRU\GHPDWWUDGLQJ7RDYDLOWKHDGYDQWDJHRIVFULSOHVVWUDGLQJ6KDUHKROGHUVDUHDGYLVHGWRFRQVLGHUGHPDWHULDOL]DWLRQRIWKHLUVKDUHKROGLQJVRDVWRDYRLGLQFRQYHQLHQFHLQIXWXUH

LL 0HPEHUV%HQHILFLDO RZQHUV DUH UHTXHVWHG WR TXRWH WKHLU )ROLR 1R '3 &OLHQW ,' 1RV DV WKH FDVH PD\ EH LQ DOO

FRUUHVSRQGHQFHZLWKWKH&RPSDQ\

LLL ,QFDVHRIORVVPLVSODFHPHQWRIVKDUHVDFRPSOLDQWVKDOOEHORGJHGZLWKWKH3ROLFH6WDWLRQDQGDQLQWLPDWLRQVKDOOEHVHQWWR

WKH&RPSDQ\DORQJZLWKRULJLQDORUFHUWLILHGFRS\RI),5DFNQRZOHGJHPHQWRIWKH&RPSODLQW

LY %HQHILFLDORZQHUVRIVKDUHVLQGHPDWIRUPDUHDGYLVHGWKDWLQWHUPVRIWKH5HJXODWLRQVRI16'/&'6/WKHLU%DQN$FFRXQW

GHWDLOVDVIXUQLVKHGWRWKH 'HSRVLWRU\3DUWLFLSDQWV '3ZLOOEH SULQWHGRQ WKHLU'LYLGHQG:DUUDQWV7KH&RPSDQ\ZLOOQRW

HQWHUWDLQUHTXHVWVIRUFKDQJHRIVXFKEDQNGHWDLOVSULQWHGRQWKHLUGLYLGHGZDUUDQWV

Y 0HPEHUVKROGLQJVKDUHVLQSK\VLFDOIRUPDUHUHTXHVWHGWRQRWLI\WRWKH&RPSDQ\FKDQJHLQWKHLU$GGUHVV3LQ&RGH1XPEHU

DQG%DQN$FFRXQWGHWDLOVSURPSWO\

YL %HQHILFLDORZQHUVRIVKDUHVLQGHPDWIRUPDUHUHTXHVWHGWRVHQGWKHLULQVWUXFWLRQVUHJDUGLQJFKDQJHRIDGGUHVVEDQNGHWDLOVQRPLQDWLRQSRZHURIDWWRUQH\HWFGLUHFWO\WRWKHLU'3DVWKHVDPHDUHPDLQWDLQHGE\WKHP

YLL 6HFWLRQ$RI&RPSDQLHV$FWH[WHQGVQRPLQDWLRQIDFLOLW\WRLQGLYLGXDOVKROGLQJVKDUHVLQSK\VLFDOIURPLQ&RPSDQLHV

0HPEHUVLQSDUWLFXODUVWKRVHKROGLQJVKDUHVLQVLQJOHQDPHPD\DYDLORIWKHDERYHIDFLOLW\E\IXUQLVKLQJWKHSDUWLFXODUVRIWKHLU

QRPLQDWLRQLQWKHSUHVFULEHG1RPLQDWLRQIRUP

)RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV

3ODFH'HOKL 5$0(6+.80$5'8$ 08.$1'/$/'8$

'DWH0D\ 0DQDJLQJ'LUHFWRU :KROH7LPH'LUHFWRU


28/5626


CEO/CFO CERTIFICATION7R

7KH%RDUGRI'LUHFWRUV

5HOD[R)RRWZHDUV/LPLWHG

68%&(2&)2&HUWLILFDWLRQ

:H5DPHVK.XPDU'XD&KLHI([HFXWLYH2IILFHUDQG0DQDJLQJ'LUHFWRUDQG6XVKLO%DWUD&KLHI)LQDQFLDO2IILFHURI5HOD[R)RRWZHDUV

/LPLWHG&HUWLI\WKDW

:HKDYHUHYLHZHGILQDQFLDOVWDWHPHQWVDQGWKHFDVKIORZVWDWHPHQWVIRUWKHILQDQFLDO\HDUHQGHGRQVW0DUFK

7RWKHEHVWRIRXUNQRZOHGJHDQGLQIRUPDWLRQ

L WKHVHVWDWHPHQWVGRQRWFRQWDLQDQ\XQWUXHVWDWHPHQWRURPLWDQ\PDWHULDOIDFWRUFRQWDLQVWDWHPHQWVWKDWPLJKWEHPLVOHDGLQJ

LL WKHVHVWDWHPHQWVWRJHWKHUSUHVHQWDWUXHDQGIDLUYLHZRIWKH&RPSDQ\VDIIDLUVDQGDUHLQFRPSOLDQFHZLWKH[LVWLQJDFFRXQWLQJ

VWDQGDUGVDSSOLFDEOHODZVDQGUHJXODWLRQV

7KHUHDUHWRWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIQRWUDQVDFWLRQVHQWHUHG LQWRE\ WKH &RPSDQ\GXULQJ WKH \HDUZKLFK DUH

IUDXGXOHQWLOOHJDORUYLRODWLYHRIWKH&RPSDQ\VFRGHRIFRQGXFW

:H DFFHSW UHVSRQVLELOLW\ IRU HVWDEOLVKLQJ DQG PDLQWDLQLQJ LQWHUQDO FRQWUROVIRU ILQDQFLDO UHSRUWLQJ DQG ZHKDYH HYDOXDWHG WKH

HIIHFWLYHQHVVRILQWHUQDOFRQWUROV\VWHPVRIWKH&RPSDQ\SHUWDLQLQJWRILQDQFLDOUHSRUWLQJDQGZHKDYHGLVFORVHGWRWKHDXGLWRUV

DQGWKH$XGLW&RPPLWWHHGHILFLHQFLHVLQGHVLJQRURSHUDWLRQRIVXFKLQWHUQDOFRQWUROVLIDQ\RIZKLFKZHDUHDZDUHDQGWKHVWHSV

ZHKDYHWDNHQRUSURSRVHWRWDNHWRUHFWLI\WKHVHGHILFLHQFLHV

:HKDYHLQGLFDWHGWRWKHDXGLWRUVDQGWKH$XGLW&RPPLWWHH

L 6LJQLILFDQWFKDQJHVLQLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJGXULQJWKH\HDULIDQ\

LL 6LJQLILFDQWFKDQJHVLQDFFRXQWLQJSROLFLHVGXULQJWKH\HDUDQGWKDWWKHVDPHKDYHEHHQGLVFORVHGLQWKHQRWHVWRWKHILQDQFLDO

VWDWHPHQWVLIDQ\DQG

LLL ,QVWDQFHVRIIUDXGZKHWKHURUQRWVLJQLILFDQWRIZKLFKZHKDYHEHFRPHDZDUHDQGWKHLQYROYHPHQWWKHUHWRLIDQ\RIWKH

PDQDJHPHQWRUDQHPSOR\HHKDYLQJDVLJQLILFDQWUROHLQWKH&RPSDQ\VLQWHUQDOFRQWUROV\VWHPRYHUILQDQFLDOUHSRUWLQJ

5$0(6+.80$5'8$ 686+,/%$75$

&KLHI([HFXWLYH2IILFHUDQG &KLHI)LQDQFLDO2IILFHU

0DQDJLQJ'LUHFWRU

3ODFH'HOKL

'DWH0D\


29/5627


AUDITOR'S CERTIFICATEON CORPORATE GOVERNANCE

727+(0(0%(562)

5(/$;2)227:($56/,0,7('

:HKDYHH[DPLQHGWKHFRPSOLDQFHRIFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHE\5(/$;2)227:($56/,0,7('IRUWKH\HDUHQGHGRQ

VW0DUFKDVVWLSXODWHGLQ&ODXVHRIWKH/LVWLQJ$JUHHPHQWRIWKHVDLGFRPSDQ\ZLWKWKH6WRFN([FKDQJHVLQ,QGLD

7KH FRPSOLDQFH RI FRQGLWLRQV RI &RUSRUDWH *RYHUQDQFH LV WKH UHVSRQVLELOLW\ RI WKH 0DQDJHPHQW2XU H[DPLQDWLRQ ZDV OLPLWHG WR

SURFHGXUHVDQG LPSOHPHQWDWLRQWKHUHRIDGRSWHGE\ WKH&RPSDQ\IRU HQVXULQJWKH FRPSOLDQFHRI WKHFRQGLWLRQ RIWKH &RUSRUDWH

*RYHUQDQFH,WLVQHLWKHUDQDXGLWQRUDQH[SUHVVLRQRIRSLQLRQRQWKHILQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\

,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVZHFHUWLI\WKDWWKH&RPSDQ\KDV

FRPSOLHGZLWKWKHFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHDVVWLSXODWHGLQFODXVHRIWKH/LVWLQJ$JUHHPHQW

:HVWDWHWKDWQRLQYHVWRUJULHYDQFHLVSHQGLQJIRUDSHULRGH[FHHGLQJRQHPRQWKDJDLQVWWKH&RPSDQ\DVSHUWKHUHFRUGVPDLQWDLQHG

E\6KDUHKROGHUV,QYHVWRUV*ULHYDQFHDQGVKDUHWUDQVIHU&RPPLWWHH

:HIXUWKHUVWDWHWKDWVXFKFRPSOLDQFHLVQHLWKHUDQDVVXUDQFHDVWRIXWXUHYLDELOLW\RIWKH&RPSDQ\QRUHIILFLHQF\RUWKHHIIHFWLYHQHVV

ZLWKZKLFKWKH0DQDJHPHQWKDVFRQGXFWHGWKHDIIDLUVRIWKH&RPSDQ\

)25*837$'8$

&KDUWHUHG$FFRXQWDQWV

5HJLVWUDWLRQ121

3ODFH'HOKL &$08.(6+'8$

'DWHG0D\ 3DUWQHU 012


30/5628


AUDITORS' REPORT727+(0(0%(562)

5(/$;2)227:($56/,0,7('

:H KDYH DXGLWHG WKH DWWDFKHG %DODQFH 6KHHW RI 5(/$;2

)227:($56/,0,7('DVDWVW0DUFKWKHVWDWHPHQWRI

3URILWDQG/RVVDQGWKH&DVK)ORZ6WDWHPHQWIRUWKHSHULRGHQGHGRQWKDWGDWHDQQH[HGWKHUHWR7KHVHILQDQFLDOVWDWHPHQWVDUHWKH

UHVSRQVLELOLW\RIWKH&RPSDQ\V0DQDJHPHQW2XUUHVSRQVLELOLW\

LVWRH[SUHVVDQRSLQLRQRQWKHVHILQDQFLDOVWDWHPHQWVEDVHGRQ

RXUDXGLW

:H FRQGXFWHG RXU DXGLW LQ DFFRUGDQFH ZLWK DXGLWLQJ

VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ ,QGLD 7KRVH VWDQGDUGV

UHTXLUHWKDWZHSODQDQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOH

DVVXUDQFHDERXWZKHWKHUWKHILQDQFLDOVWDWHPHQWVDUHIUHHRI

PDWHULDOPLVVWDWHPHQW$QDXGLWLQFOXGHVH[DPLQLQJRQDWHVW

EDVLVHYLGHQFHVXSSRUWLQJWKH DPRXQWVDQG GLVFORVXUHVLQ

ILQDQFLDOVWDWHPHQWV $QDXGLW DOVRLQFOXGHV DVVHVVLQJWKH

DFFRXQWLQJSULQFLSOHVXVHGDQGVLJQLILFDQWHVWLPDWHVPDGH

E\WKH0DQDJHPHQWDVZHOODVHYDOXDWLQJWKHRYHUDOOILQDQFLDOVWDWHPHQWSUHVHQWDWLRQ:HEHOLHYHWKDWRXUDXGLWSURYLGHVD

UHDVRQDEOHEDVLVIRURXURSLQLRQ

$V UHTXLUHG E\ WKH &RPSDQLHV$XGLWRUV 5HSRUW 2UGHU

DV DPHQGHG LVVXHG E\ WKH &HQWUDO *RYHUQPHQW

RI,QGLDLQ WHUPVRI VXE VHFWLRQ$RIVHFWLRQRI WKH

&RPSDQLHV$FWZHHQFORVHLQWKH$QQH[XUHKHUHWRD

VWDWHPHQWRQWKHPDWWHUVVSHFLILHGLQSDUDJUDSKVDQGRI

WKHVDLG2UGHU

)XUWKHU WR RXU FRPPHQWV LQ WKH DQQH[XUH UHIHUUHG WR LQ

SDUDJUDSKDERYHZHUHSRUWWKDW

D :HKDYHREWDLQHGDOOWKHLQIRUPDWLRQDQGH[SODQDWLRQV

ZKLFK WR WKH EHVW RI RXU NQRZOHGJH DQG EHOLHI ZHUHQHFHVVDU\IRUWKHSXUSRVHVRIRXUDXGLW

E ,Q RXURSLQLRQ SURSHU ERRNVRI DFFRXQW DV UHTXLUHG

E\ODZ KDYH EHHQ NHSW E\WKH &RPSDQ\VR IDU DVLW

DSSHDUVIURPRXUH[DPLQDWLRQRIVXFKERRNV

F 7KH%DODQFH6KHHW VWDWHPHQWRI 3URILW DQG/RVV DQG

&DVK)ORZ6WDWHPHQWGHDOWZLWK E\ WKLVUHSRUW DUH LQ

DJUHHPHQWZLWKWKHERRNVRIDFFRXQW

G ,QRXURSLQLRQWKH%DODQFH6KHHWVWDWHPHQWRI3URILW

/RVVDQG&DVK)ORZ6WDWHPHQWGHDOWZLWKE\WKLVUHSRUW

FRPSO\ ZLWK WKH PDQGDWRU\ $FFRXQWLQJ 6WDQGDUGV

UHIHUUHG LQ VXEVHFWLRQ & RI VHFWLRQ RI WKH

&RPSDQLHV$FW

H 2Q WKHEDVLV RI WKH ZULWWHQ UHSUHVHQWDWLRQV UHFHLYHG

IURPWKH'LUHFWRUVDVRQVW0DUFKDQGWDNHQ

RQUHFRUGE\WKH%RDUGRI'LUHFWRUVZHUHSRUWWKDWQRQH

RIWKH'LUHFWRUVLVGLVTXDOLILHGDVRQVW0DUFK

IURPEHLQJDSSRLQWHGDVD'LUHFWRULQWHUPVRIFODXVHJ

RIVXEVHFWLRQRI6HFWLRQRIWKH&RPSDQLHV$FW

I ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQG

DFFRUGLQJ WR WKH H[SODQDWLRQV JLYHQ WR XV WKH VDLG

ILQDQFLDOVWDWHPHQWVUHDG WRJHWKHUZLWK WKHVLJQLILFDQW

DFFRXQWLQJSROLFLHVDQGQRWHVWKHUHRQJLYHQLQ1RWH

JLYHWKHLQIRUPDWLRQUHTXLUHGE\WKH&RPSDQLHV$FW

LQWKHPDQQHUVRUHTXLUHGDQGSUHVHQWDWUXHDQG

IDLUYLHZ LQFRQIRUPLW\ZLWK WKHDFFRXQWLQJ SULQFLSOHV

JHQHUDOO\DFFHSWHGLQ,QGLD

L LQVRIDUDV L WUHODWHVWRWKH%DOD QFH6KHHWRIWKH

VWDWHRIDIIDLUVRIWKH&RPSDQ\DVDWVW0DUFK

L L LQVRIDUDVLWUHODWHVWRWKHVWDWHPHQWRI3URI LWDQG

/RVV RI WKH SURILW RI WKH &RPSDQ\ IRU WKH \HDU

HQGHGRQWKDWGDWHDQG

LLL LQVRIDUDVLWUHODWHVWRWKH&DVK)ORZ6WDWHPHQWRI

WKHFDVKIORZVRIWKH&RPSDQ\IRUWKH\HDUHQGHG

RQWKDWGDWH

)25*837$'8$


5HJLVWUDWLRQ121

3ODFH'HOKL &$08.(6+'8$



31/5629


$11(;85( 72 7+( $8',7256 5(3257 2) 5(/$;2

)227:($56 /,0,7(' )25 7+( 3(5,2' (1'(' 67

0$5&+5()(55('72,13$5$*5$3+2)285

5(32572)(9(1'$7(

,QUHVSHFWRILWVIL[HGDVVHWV

D 7KH&RPSDQ\KDVPDLQWDLQHGSURSHUUHFRUGVVKRZLQJ

IXOOSDUWLFXODUVLQFOXGLQJTXDQWLWDWLYHGHWDLOVDQGVLWXDWLRQ

RIIL[HGDVVHWV

E $VH[SODLQHGWRXVWKHIL[HGDVVHWVKDYHEHHQSK\VLFDOO\

YHULILHGE\WKH0DQDJHPHQWDWDOOORFDWLRQVDWUHDVRQDEOH

LQWHUYDOV 1R PDWHULDO GLVFUHSDQFLHV EHWZHHQ ERRN

UHFRUGVDQGWKHSK\VLFDOLQYHQWRULHVKDYHEHHQQRWLFHG

RQVXFKYHULILFDWLRQ

F ,QRXURSLQLRQWKHFRPSDQ\KDVQRWGLVSRVHGRIIDQ\

VXEVWDQWLDOPDMRUSDUWRILWVIL[HGDVVHWVGXULQJWKH\HDU

DQG WKH JRLQJFRQFHUQ VWDWXV RI WKH FRPSDQ\ LV QRW

DIIHFWHG

,QUHVSHFWRILWVLQYHQWRULHV

D $VH[SODLQHGWRXVLQYHQWRULHVZHUHSK\VLFDOO\YHULILHG

E\WKHPDQDJHPHQWDWUHDVRQDEOHLQWHUYDOVGXULQJWKH

\HDU

E ,Q RXU RSLQLRQDQG DFFRUGLQJ WR WKHLQIRUPDWLRQ DQG

H[SODQDWLRQV JLYHQ WR XV WKH SURFHGXUHV RI SK\VLFDO

YHULILFDWLRQRILQYHQWRULHVIROORZHGE\WKHPDQDJHPHQW

DUHUHDVRQDEOHDQGDGHTXDWHLQUHODWLRQWRWKHVL]HRIWKH

&RPSDQ\DQGWKHQDWXUHRILWVEXVLQHVV

F ,Q RXU RSLQLRQDQG DFFRUGLQJ WR WKHLQIRUPDWLRQ DQG

H[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\KDVPDLQWDLQHG

SURSHU UHFRUGV RILWV LQYHQWRULHV $VH[SODLQHG WRXV

QR PDWHULDO GLVFUHSDQFLHV ZHUH QRWLFHG RQ SK\VLFDO

YHULILFDWLRQ RI LQYHQWRULHV DV FRPSDUHG WR WKH ERRN

UHFRUGV

,QUHVSHFWRIORDQVVHFXUHGRUXQVHFXUHGJUDQWHGRUWDNHQ

E\WKH&RPSDQ\WRIURP&RPSDQLHVILUPVRURWKHUSDUWLHV

FRYHUHGLQWKHUHJLVWHUPDLQWDLQHGXQGHUVHFWLRQRIWKH

&RPSDQLHV$FW

D 7KH&RPSDQ\KDVWDNHQXQVHFXUHGORDQIURPDSDUW\

,Q UHVSHFW RI WKH VDLG ORDQ WKH PD[LPXP DPRXQW

RXWVWDQGLQJDW DQ\ WLPH GXULQJ WKH \HDU ZDV`

ODFVDQGWKH\HDUHQGEDODQFHLV ODFV

E ,Q RXU RSLQLRQDQG DFFRUGLQJ WR WKHLQIRUPDWLRQ DQG

H[SODQDWLRQVJLYHQWRXVWKHUDWHRILQWHUHVWDQGRWKHU

WHUPVDQGFRQGLWLRQVDUHQRWSULPDIDFLHSUHMXGLFLDOWR

WKHLQWHUHVWRIWKHFRPSDQ\

F 7KH&RPSDQ\LVUHJXODULQSD\LQJWKHSULQFLSDODPRXQWV

DV VWLSXODWHG DQG KDYH EHHQ UHJXODU LQ SD\PHQW RI

LQWHUHVWLQUHVSHFWRIORDQVUHIHUUHGWRLQDDERYH

G 7KHUHLVQRRYHUGXHDPRXQWRIORDQVWDNHQDVUHIHUUHGWR

LQDDERYH

H 7KHFRPSDQ\KDVQRWJUDQWHGDQ\ORDQWRFRPSDQLHV

ILUPVRURWKHUSDUWLHVFRYHUHGLQWKHUHJLVWHUPDLQWDLQHG

XQGHUVHFWLRQRIWKH&RPSDQ\$FW

,Q RXU RSLQLRQ D QG DFFRUGLQJ WR WKH LQIRUPDWLRQ D QG

H[SODQDWLRQVJLYHQWRXVWKHUHDUHDGHTXDWHLQWHUQDOFRQWURO

SURFHGXUHV FRPPHQVXUDWH ZLWK WKH VL]H RI WKH &RPSDQ\

DQGWKHQDWXUHRILWVEXVLQHVVIRUWKHSXUFKDVHRILQYHQWRU\

DQG IL[HG DVVHWV DQG IRU WKH VDOH RI JRRGV DQG VHUYLFHV

'XULQJWKHFRXUVHRIRXUDXGLWQRPDMRUZHDNQHVVHVKDYH

EHHQQRWLFHGLQWKHLQWHUQDOFRQWURO

,Q UHVSHFW RI FRQWUDFWV RU DUUDQJHPHQWVWKDW QHHG WR EH

HQWHUHGLQWKHUHJLVWHUPDLQWDLQHGLQSXUVXDQFHRIVHFWLRQ

RIWKH&RPSDQLHV$FW

D 7RWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIDQGDFFRUGLQJWR

WKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVSDUWLFXODUVRI FRQWUDFWV RU DUUDQJHPHQWV DV WKH FDVH PD\ EH

WKDWQHHGWREHHQWHUHGLQWRWKHUHJLVWHUKDYHEHHQVR

HQWHUHG

E $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWR

XVWKHWUDQVDFWLRQVPDGHLQSXUVXDQFHRIVXFKFRQWUDFWV

RUDUUDQJHPHQWVDV WKH FDVH PD\EH H[FHHGLQJ WKH

YDOXHRI` ILYHODFVLQUHVSHFWRIHDFKSDUW\GXULQJWKH

\HDUKDYHEHHQPDGH DWSULFHVZKLFK DUH SULPDIDFLH

UHDVRQDEOHKDYLQJUHJDUGWRWKHSUHYDLOLQJPDUNHWSULFHV

DWWKHUHOHYDQWWLPHDQGDVSHULQIRUPDWLRQDYDLODEOHZLWK

WKH&RPSDQ\

,Q RXU RSLQLRQ D QG DFFRUGLQJ WR WKH LQIRUPDWLRQ D QG

H[SODQDWLRQVJLYHQ WRXVWKH &RPSDQ\ KDV QRW DFFHSWHGDQ\GHSRVLWZLWKLQWKHPHDQLQJRI6HFWLRQ$DQG6HFWLRQ

$$RIWKH&RPSDQLHV$FW

,Q RXU RSLQLRQ WKHFRPSDQ\ KDVDQ LQWHUQDO DXGLW V\VWHP

FRPPHQVXUDWHZLWKWKHVL]HDQGQDWXUHRILWVEXVLQHVV

2Q WKH EDVLV RI WKH LQIRUPDWLRQ DQG H[SODQDWLRQ SURYLGHG

WRXV ZHDUHRI WKH RSLQLRQWKDWSULPDIDFLH FRVWUHFRUGV

DQGDFFRXQWVSUHVFULEHGE\WKH&HQWUDO*RYHUQPHQWXQGHU

VHFWLRQGRIWKH&RPSDQLHV$FWLQUHVSHFWRI

SURGXFWVRIWKHFRPSDQ\FRYHUHGXQGHUWKHUXOHVXQGHUVDLG

VHFWLRQKDYHEHHQPDLQWDLQHG+RZHYHUZHKDYHQRWPDGHD

GHWDLOHGH[DPLQDWLRQRIWKHUHFRUGVZLWKDYLHZWRGHWHUPLQH

ZKHWKHUWKH\DUHDFFXUDWHRUFRPSOHWH

,QUHVSHFWRIVWDWXWRU\GXHV

D $FFRUGLQJWRWKHUHFRUGVRIWKHFRPSDQ\XQGLVSXWHG

VWDWXWRU\ GXHV LQFOXGLQJ 3URYLGHQW )XQG ,QYHVWRU

(GXFDWLRQ DQG 3URWHFWLRQ )XQG (PSOR\HHV 6WDWH

,QVXUDQFH,QFRPH7D[ 6DOHV 7D[:HDOWK 7D[6HUYLFH

7D[ &XVWRPV 'XW\ ([FLVH 'XW\ &HVV DQG RWKHU

VWDWXWRU\GXHVKDYHEHHQJHQHUDOO\UHJXODUO\GHSRVLWHG


32/5630

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 Genera l 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 Va lue 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. 2007-082008-09

2009-10

2010-11

2011-12

High Court, JodhpurHigh Court, Jodhpur

High Court, Jodhpur

High Court, Jodhpur

High Court, Jodhpur

1.761.81

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 immediatelypreceding 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.


33/5631


,QRXURSLQLRQWKHWHUPORDQKDVEHHQXWLOL]HGIRUWKHSXUSRVHV

IRUZKLFKWKHVDPHZDVUDLVHG

$FFRUGLQJ WR WKH FDVK IORZ VWDWHPHQW DQG RWKHU UHFRUGV

H[DPLQHG E\ XV DQG DFFRUGLQJ WR WKH LQIRUPDWLRQ DQG

H[SODQDWLRQVJLYHQWRXVRQDQRYHUDOOEDVLVIXQGVUDLVHGRQ

VKRUWWHUPEDVLVKDYHSULPDIDFLHQRWEHHQXVHGGXULQJWKH

\HDUIRUORQJWHUPLQYHVWPHQW

'XULQJWKH\HDUWKH&RPSDQ\KDVQRWPDGHDQ\SUHIHUHQWLDO

DOORWPHQWRIVKDUHVWRSDUWLHVDQGFRPSDQLHVFRYHUHGLQWKH

UHJLVWHUPDLQWDLQHGXQGHU6HFWLRQRIWKH&RPSDQLHV$FW

7KHFRPSDQ\KDV QRWLVVXHGGHEHQWXUHVDQGWKHUHIRUHWKH

TXHVWLRQRIVHFXULWLHVRUFKDUJHWREHFUHDWHGLQUHVSHFWRI

GHEHQWXUHGRHVQRWDULVH

7KH &RPSDQ\KDVQRWUDLVHGDQ\PRQH\ E\ZD\RISXEOLF

LVVXHGXULQJWKH\HDU

7RWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIDQGDFFRUGLQJWRWKH

LQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVQRIUDXGRQRUE\

WKH&RPSDQ\ZDVQRWLFHGRUUHSRUWHGGXULQJWKH\HDUWKDW

FDXVHVWKHILQDQFLDOVWDWHPHQWVWREHPDWHULDOO\PLVVWDWHG

)25*837$'8$


5HJLVWUDWLRQ1R1

3ODFH'HOKL &$08.(6+'8$



34/5632


BALANCE SHEETAS AT 31STMARCH, 2012

` LQ/DFV

3DUWLFXODUV 1RWH1R

$VDW

$VDW

(48,7


35/5633


STATEMENT OF PROFIT AND LOSSFOR THE YEAR ENDED 31STMARCH 2012

` LQ/DFV

3DUWLFXODUV 1RWH1R

5(9(18(

5HYHQXHIURP2SHUDWLRQV*URVV

/HVV([FLVH'XW\

5HYHQXHIURP2SHUDWLRQV1HW

2WKHU,QFRPH

727$/

(;3(1',785(

&RVWRI0DWHULDOV&RQVXPHG

3XUFKDVHVRI6WRFNLQ7UDGH

&KDQJHVLQ,QYHQWRULHVRI)LQLVKHG*RRGV

:RUNLQ3URJUHVVDQG6WRFNLQ7UDGH

(PSOR\HH%HQHILWV([SHQVH

6HOOLQJDQG'LVWULEXWLRQ([SHQVHV

)LQDQFH&RVWV

'HSUHFLDWLRQDQG$PRUWL]DWLRQ([SHQVH

2WKHU([SHQVHV

727$/

3URILWEHIRUH([FHSWLRQDODQG([WUDRUGLQDU\LWHPVDQG7D[

([FHSWLRQDO,WHPV

3URILWEHIRUH([WUDRUGLQDU\,WHPVDQG7D[

([WUD2UGLQDU\,WHPV>UHIHU1RWH%@

3URILWEHIRUH7D[

7D[([SHQVH

&XUUHQWWD[

$GG/HVV0$7&UHGLW 1HW&XUUHQW7D[

'HIHUUHG7D[

7D[IRU(DUOLHU


36/5634


CASH FLOW STATEMENTFOR THE YEAR ENDED 31STMARCH 2012

` LQ/DFV

61R 3DUWLFXODUV

$ &$6+)/2:)52023(5$7,1*:6

352),7%()25(7$;$1'(;75$25',1$5


37/5635


NOTES FORMING PARTOF FINANCIAL STATEMENTS

127(6+$5(&$3,7$/

` LQ/DFV

3DUWLFXODUV

$VDW

$VDW

$87+25,6('&$3,7$/

(TXLW\6KDUHVRI HDFK

,668('68%6&5,%('$1'3$,'83

(TXLW\6KDUHVRI`HDFKIXOO\3DLG

7KHUHLVQRFKDQJHLQWKH6KDUHV2XWVWDQGLQJDWWKHEHJLQQLQJDQGDWWKHHQGRIWKH


38/5636


127(/21*7(50%2552:,1*6

`LQ/DFV

3DUWLFXODUV 1RQ&XUUHQW3RUWLRQ &XUUHQW3RUWLRQ

$6HFXUHG/RDQV

7HUP/RDQVIURP%DQNV

6WDWH%DQNRI,QGLD

D)RUHLJQ&XUUHQF\/RDQ

5HSD\DEOHRQPRQWKO\EDVLVZLWKODVWLQVWDOPHQW

GXHLQ-DQ


GXHLQ-DQ

E5XSHH7HUP/RDQ


GXHLQ-DQ

+')&%DQND )RUHLJQ&XUUHQF\/RDQ

5HSD\DEOHRQTXDUWHUO\EDVLVZLWKODVWLQVWDO

PHQWGXHLQ1RY

E5XSHH7HUP/RDQ


PHQWGXHLQ$XJ

6WDQGDUG&KDUWHUHG%DQN

)RUHLJQ&XUUHQF\/RDQ


PHQWGXHLQ2FW


PHQWGXHLQ1RY

727$/$

%8QVHFXUHG/RDQV

5HODWHG3DUWLHV

2WKHUV

727$/%

727$/$%

'HWDLOVRI6HFXULWLHVIRU7HUP/RDQV

6WDWH%DQNRI,QGLD

VW3DUL3DVVXFKDUJHRYHUHQWLUH)L[HG$VVHWVERWKSUHVHQWIXWXUHHTXLWDEOHPRUWJDJHRIIDFWRU\/DQG%XLOGLQJDW3ORW1R0,(

%DKDGXUJDUK3ORW1R0,(%DKDGXUJDUK3ORW1R$$,QGXVWULDO$UHD,,,%KLZDGL3ORW1R6HFWRU,,(6,'&8/5DQLSXU'LVWW

+DULGZDU3ORW1R6HFWRU)RRWZHDU3DUN%DKDGXUJDUK:LQG0LOOVLQ'LVWW-RGKSXU3HUVRQDO*XDUDQWHHVRI0DQDJLQJ'LUHFWRU

:KROH7LPH'LUHFWRUV

+')&%DQN

([FOXVLYH,VWFKDUJHRQPRYDEOHLPPRYDEOHSURSHUW\DW3ORW1R0,(%DKDGXUJDUK+DU\DQD)UHHKROG,QGXVWULDO3ORW1R%ORFN1R)

0&,(8G\RJ1DJDU'HOKLRIDILUPLQZKLFKGLUHFWRUVDUHSDUWQHUV3HUVRQDO*XDUDQWHHVRI0DQDJLQJ'LUHFWRU:KROH7LPH'LUHFWRU

6WDQGDUG&KDUWHUHG%DQN

([FOXVLYHVWFKDUJHRQ/DQG%XLOGLQJDW3ORW1R0RRMD+DVDQSXU7LNUL%RUGHU%DKDGXUJDUK+DU\DQDLQWKHQDPHRIUHODWLYHVRI

'LUHFWRUV

([FOXVLYHVWFKDUJHRQPRYDEOHLPPRYDEOHDVVHWVDW3ORW1R6HFWRU%,QGXVWULDO(VWDWH%DKDGXUJDUK+DU\DQD3HUVRQDO

*XDUDQWHHVRI0DQDJLQJ'LUHFWRU:KROH7LPH'LUHFWRU

5HODWHG3DUWLHV2WKHUV

7KH8QVHFXUHG /RDQVIURP SURPRWHUVDQGRU WKHLUUHODWLYHV VKDOOEH UHSDLGRQO\ ZLWKWKH SULRUDSSURYDO RIOHQGLQJEDQNV7KHVHDUH

ORQJWHUPERUURZLQJVKDYHEHHQLQGXFWHGIRUIXWXUHFDSLWDOH[SDQVLRQDQGDUHDOZD\VVXERUGLQDWHWRWKHORDQVRIEDQNV


39/5637


127('()(55('7$;/,$%,/,7


40/56


41/5639


127(),;('$66(76

` LQ/DFV

3DUWLFXODUV *5266%/2&. '(35(&,$7,21 1(7%/2&.

$VDW $GGLWLRQV 'HOHWLRQV$GMXVWPHQWV 7RWDO$VDW $VDW )RUWKH


42/5640


127(121&855(17,19(670(176

` LQ/DFV

3DUWLFXODUV

$VDW

$VDW

(TXLW\6KDUHVXQTXRWHG7UDGHDWFRVW

(TXLW\6KDUHVRI`HDFKIXOO\SDLGRI

5HOD[R5XEEHU3ULYDWH/LPLWHGDQDVVRFLDWHFRPSDQ\

LQFOXGHVERQXVVKDUHV

*RYHUQPHQW6HFXULWLHV8QTXRWHGDWFRVW


43/5641


127(75$'(5(&(,9$%/(6

` LQ/DFV

3DUWLFXODUV

$VDW

$VDW

'HEWRXWVWDQGLQJIRUDSHULRGH[FHHGLQJVL[PRQWKVIURPWKHGDWHWKH\

DUHGXHIRUSD\PHQW8QVHFXUHG

&RQVLGHUHGJRRG

'RXEWIXO

/HVV3URYLVLRQIRU'RXEWIXO'HEWV

2WKHU'HEWV

6HFXUHGFRQVLGHUHGJRRG

8QVHFXUHGFRQVLGHUHGJRRG

727$/

,QFOXGHVÒDFV3UHYLRXV\HDUÒDFVIURPWKHILUPVLQZKLFK'LUHFWRUVDUHLQWHUHVWHG

127(&$6+%$1.%$/$1&(6

&DVKDQG&DVK(TXLYDOHQWV

%DODQFHVZLWK%DQNV&XUUHQW$FFRXQWV

&DVKRQ+DQG

(DUPDUNHG%DODQFHVZLWK%DQNV8QSDLG'LYLGHQG$FFRXQWVUHIHU1RWH

%DODQFHVZLWK%DQNVDV0DUJLQPRQH\RQ/HWWHURI&UHGLWDQG%DQNJXDUDQWHHV

727$/

127(6+2577(50/2$16$1'$'9$1&(6

8QVHFXUHGFRQVLGHUHGJRRG$GYDQFH,QFRPH7D[DQGZLWKKROGLQJWD[

/RDQVDGYDQFHVWRHPSOR\HHV

3UHSDLG([SHQVHV

'HSRVLWVZLWK*RYHUQPHQWGHSDUWPHQWVDQGRWKHUV

$GYDQFHWR6XSSOLHUV

727$/

,QFOXGHV` 1LOSUHYLRXV\HDUÒDFVIURPWKHILUPLQZKLFK'LUHFWRUVDUHLQWHUHVWHG

127(27+(5&855(17$66(76

,QWHUHVWDFFUXHGRQGHSRVLWVDQGDGYDQFHV

([SRUWUHFHLYDEOHV

*UDQWVUHFHLYDEOH

8QDPRUWLVHGSUHPLXPRQIRUZDUGFRQWUDFWV

727$/


44/5642


127(5(9(18()52023(5$7,216*URVV

` LQ/DFV

3DUWLFXODUV

6DOHRI3URGXFWV

)RRWZHDU

3RZHU

6DOHRI6HUYLFHV

7RWDO$

2WKHU2SHUDWLQJ5HYHQXHV

6FUDS6DOH

([SRUW,QFHQWLYH

7RWDO%

727$/$%

127(27+(5,1&20(

,QWHUHVW,QFRPH

([FKDQJH*DLQ1HW

3URYLVLRQVQRORQJHUUHTXLUHGZULWWHQEDFN

0LVFHOODQHRXV,QFRPH

727$/

127(&+$1*(6,1,19(1725,(62)),1,6+('*22'6:25.,1352*5(66$1'672&.,175$'(

&/26,1*672&.

)LQLVKHG*RRGV

6WRFNLQ7UDGH

:RUNLQ3URJUHVV

23(1,1*672&.

)LQLVKHG*RRGV

6WRFNLQ7UDGH

:RUNLQ3URJUHVV

,QFUHDVH'HFUHDVH

&KDQJHLQ([FLVH'XW\RQ6WRFNV

727$/

127((03/2


45/5643


127(),1$1&(&2676

` LQ/DFV

3DUWLFXODUV

,QWHUHVW([SHQVH

2WKHU%RUURZLQJ&RVWV

$PRUWLVHG3UHPLXPRQ)RUHLJQ&XUUHQF\%RUURZLQJV

727$/

127(27+(5(;3(16(6

3RZHU)XHO

5HQW

5HSDLUV%XLOGLQJ

5HSDLUV0DFKLQHU\

2WKHU5HSDLUV

6WRUHVDQG6SDUHV&RQVXPHG

+DQGOLQJDQG2WKHUV&KDUJHV ,QVXUDQFH

7UDYHOOLQJ&RQYH\DQFH

3URYLVLRQIRUGRXEWIXOGHEWV

%DGGHEWVZULWWHQRII

5DWHV7D[HV

3ULQWLQJ6WDWLRQHU\

&RPPXQLFDWLRQ([SHQVHV

6HFXULW\([SHQVHV

/HJDO3URIHVVLRQDO([SHQVHV

/RVVRQ6DOHRI$VVHWV1HW

0LVFHOODQHRXV([SHQVHV

727$/

NOTE 27 - ACCOUNTING POLICIES AND

ADDITIONAL NOTES ON ACCOUNTS$ 6,*1,),&$17$&&2817,1*32/,&,(6

1$785(2)23(5$7,21

7KHF RPSD Q\ LVS ULPD ULO\H QJDJHGL QWKHE XVLQHVVR I

PDQXIDFWXULQJDQGWUDGLQJRIIRRWZHDUDQGDFFHVVRULHV

WKURXJKLWVUHWDLOH[SRUWDQGZKROHVDOHQHWZRUN

$&&2817,1*&219(17,21

7KH )LQD QFLD O 6WD WHPHQWV KDYH EHHQ SUHSD UHG XQGHU

WKHKLVWRULFDO FRVWFRQYHQWLRQ DQG LQ DFFRUGDQFHZLWK

JHQHUDOO\ DFFHSWHG DFFRXQWLQJ SULQFLSOHV DQG WKH

SURYLVLRQVRIWKH&RPSDQLHV$FW

'XULQJ WKH \HDU HQGHG VW 0DUFK WKH UHYLVHG

6FKHGXOH9,QRWLILHGXQGHUWKH&RPSDQLHV$FWKDV

EHFRPHDSSOLFDEOHWRWKHFRPSDQ\IRUSUHSDUDWLRQDQG

SUHVHQWDWLRQRILWVILQDQFLDOVWDWHPHQWV7KHDGRSWLRQRI

UHYLVHG 6FKHGXOH9, GRHV QRW LPSDFWUHFRJQLWLRQ DQG

PHDVXUHPHQW SULQFLSOHV IROORZHG IRU SUHSDUDWLRQ RI

ILQDQFLDOVWDWHPHQWV+RZHYHULWKDVVLJQLILFDQWLPSDFW

RQ SUHVHQWDWLRQ DQG GLVFORVXUH PDGH LQ WKH ILQDQFLDO

VWDWHPHQWV7KHFRPSDQ\KDVDOVRUHFODVVLILHGSUHYLRXV

\HDU ILJXUHV LQ DFFRUGDQFH ZLWK WKH UHTXLUHPHQWV

DSSOLFDEOHLQWKHFXUUHQW\HDU

86(2)(67,0$7(6

7KHSUHSDUDWLRQRIWKHILQDQFLDOVWDWHPHQWVLQFRQIRUPLW\

ZLWK ,QGLDQ*$$3 UHTXLUHVWKH 0DQDJHPHQW WR PDNH

HVWLPDWHVDQGDVVXPSWLRQVFRQVLGHUHGLQWKHUHSRUWHG

DPRXQWV RI DVVHWV DQG OLDELOLWLHV LQFOXGLQJ FRQWLQJHQW

OLDELOLWLHVDQGWKHUHSRUWHGLQFRPHDQGH[SHQVHVGXULQJ

WKH\HDU7KH0DQDJHPHQWEHOLHYHVWKDWWKHHVWLPDWHV

XVHG LQ SUHSDUDWLRQ RI WKH ILQDQFLDO VWDWHPHQWV DUH

SUXGHQWDQGUHDVRQDEOH)XWXUHUHVXOWVFRXOGGLIIHUGXH

WR WKHVH HVWLPDWHV DQG WKH GLIIHUHQFHV EHWZHHQ WKH

DFWXDOUHVXOWVDQGWKHHVWLPDWHVDUHUHFRJQLVHGLQWKH

SHULRGLQZKLFKWKHUHVXOWVDUHNQRZQPDWHULDOLVH


46/5644


,19(1725,(6

, QYHQWRULHVDUHYDOXHGDVXQGHU

5DZ 0DWHULDO 3DFNLQJ 0DWHULDO 6WRFNLQSURFHVV

)LQLVKHG JRRGV 6WRFNLQ7UDGH )XHO 6WRUH 6SDUH

7RROVDWFRVWRUQHWUHDOL]DEOHYDOXHZKLFKHYHULVORZHU7KHFRVWLVGHWHUPLQHGRQZHLJKWHGDYHUDJH

EDVLV DQG LQFOXGHV IUHLJKW WD[HV DQG GXWLHV DQG

LV QHW RI FUHGLW XQGHU9$7 DQG &(19$7 VFKHPHV

ZKHUHYHUDSSOLFDEOH

0DQXIDFWXUHG*RRGVDWFRVWRUQHWUHDO L]DEOHYDOXH

ZKLFKHYHULVORZHU&RVWLQFOXGHDOOGLUHFWFRVWVDQG

DSSOLFDEOHSURGXFWLRQRYHUKHDGVWREULQJWKHJRRGV

WRWKHSUHVHQWORFDWLRQDQGFRQGLWLRQ

([FLVH GXW\ DFFUXHG RQ WKH SURGXFWLRQ RI

PDQXIDFWXUHG JRRGV LVLQFOXGHGLQ WKHYDOXDWLRQRI

LQYHQWRULHVZKHUHYHUDSSOLFDEOH

&$6+$1'&$6+(48,9$/(176

&DVKF RPSULVHVF DVKR QK DQGD QGG HPDQGG HSRVLWV

ZLWKEDQNV &DVKHTXLYDOHQWVDUHVKRUWWHUP EDODQFHV

KLJKO\ OLTXLG LQYHVWPHQWV WKDW DUH UHDGLO\ FRQYHUWLEOH

LQWRNQRZQDPRXQWVRIFDVKDQGZKLFKDUHVXEMHFWWR

LQVLJQLILFDQWULVNRIFKDQJHVLQYDOXH

&$6+)/2:67$7(0(17

&DVK IORZV DUH UHSRUWHG XVLQJ WKH LQGLUHFW PHWKRG

ZKHUHE\ SURILW ORVV EHIRUH H[WUDRUGLQDU\ LWHPV DQG

WD[LV DGMXVWHGIRU WKH HIIHFWV RIWUDQVDFWLRQV RIQRQ

FDVK QDWXUH DQG DQ\ GHIHUUDOV RU DFFUXDOV RISDVW RU

IXWXUH FDVK UHFHLSWV RU SD\PHQWV 7KH FDVK IORZV

IURPRSHUDWLQJLQYHVWLQJDQGILQDQFLQJDFWLYLWLHV RIWKH

&RPSDQ\DUHVHJUHJDWHG

35,253(5,2'(;75$25',1$5


47/5645


RU H[SHQVHV LQ 6WDWHPHQW RI 3URILW DQG /RVV 1RQ

PRQHWDU\LWHPVDUHFDUULHGDWKLVWRULFDOFRVW

'HULYDWLYHWUDQVDFWLRQVDUHFRQVLGHUHGDV RIIEDODQFH

VKHHW LWHPV DQG FDVK I ORZV DULVLQJ WKHUHRQ DUH

UHFRJQL]HG LQ WKH ERRNV RI DFFRXQW RQ SULQFLSOH RI3UXGHQFH DV SUHVFULEHG LQ WKH $FFRXQWLQJ 6WDQGDUG

$6LVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWV

RI ,QGLD 3UHPLXP GLVFRXQW RQ IRUZDUG H[FKDQJH

FRQWUDFWV ZKLFK DUH QRW LQWHQGHG IRU WUDGLQJ RU

VSHFXODWLRQSXUSRVHVDUHDPRUWLVHGRYHUWKHSHULRGRI

WKHFRQWUDFWVLIVXFKFRQWUDFWVUHODWHWRPRQHWDU\LWHPV

DVDWWKH%DODQFH6KHHWGDWH

*29(510(17*5$176

*RYHUQPHQW JUDQWV LQ WKH QDWXUH RI SURPRWHUV

FRQWULEXWLRQ O LNH LQYHVWPHQW VXEVLG\ ZKHUH QR

UHSD\PHQWLVRUGLQDULO\H[SHFWHGLQUHVSHFWWKHUHRIDUH

WUHDWHGDVFDSLWDOUHVHUYH$Q\*UDQWV6XEVLG\UHFHLYHG

DJDLQVWVSHFLILFIL[HGDVVHWVDUHUHGXFHGIURPWKHFRVWRIIL[HGDVVHWV

([SRUWEHQHILWVDUHDFFRXQWHGIRULQWKH\HDURIH[SRUWV

EDVHGRQHOLJLELOLW\DQGZKHQWKHUHLVQRXQFHUWDLQW\LQ

UHFHLYLQJWKHVDPH

,19(670(176

/RQJ 7HUP ,QYHVWPHQWV DUH VWDWHG DW FRVW &RVW

RI LQYHVWPHQW LQFOXGH DFTXLVLWLRQ FKDUJHV VXFK DV

EURNHUDJHIHHVDQGGXWLHV

(03/2


48/5646


% $'',7,21$/127(621$&&28176

&RQWLQJHQW/LDELOLWLHVDQG&RPPLWPHQWV

L &RQWLQJHQW/LDELOLWLHV

` LQ/DFV

3DUWLFXODUV $VDW

$VDW

D&ODLPVDJDLQVW

WKHFRPSDQ\QRW

DFNQRZOHGJHGDV

GHEWV

E6XUHW\%RQGVJLYHQ

WR*RYW$XWKRULWLHV

F7KH ODZVXLWV LQ UHVSHFW RI FHUWDLQ ,QWHOOHFWXDO

3URSHUW\ 5LJKWV 7UDGHPDUNV DUH SHQGLQJ LQ

&RXUWV7KH SURFHHGLQJV DUH DW WKH SUHOLPLQDU\

VWDJH DQG WKH XOWLPDWH RXWFRPH RI WKH PDWWHU

FDQQRWSUHVHQWO\EHGHWHUPLQHG1RSURYLVLRQIRU

DQ\OLDELOLW\WKDWPD\UHVXOWKDVEHHQPDGH

LL &RPPLWPHQWV

D (VWLPDWHG DPRXQW RI FRQWUDFWV UHPDLQLQJ WR EH

H[HFXWHG RQ FDSLWDO DFFRXQW DQGQRW SURYLGHG IRU

`ODFV3UHYLRXV


49/5647


G&,)YDOXHRILPSRUWV ` LQ/DFV

3DUWLFXODUV

L&DSLWDOJRRGV

LL0DWHULDOVLQFOXGLQJ6WRUH6SDUH

H([SHQGLWXUHLQIRUHLJQFXUUHQF\RQDFFUXDOEDVLV

3DUWLFXODUV

L7UDYHOOLQJ([SHQVHV

LL,QWHUHVW

LLL2WKHUV

I (DUQLQJLQ)RUHLJQ([FKDQJH)2%YDOXHRI([SRUW6DOH

:HDOWK7D [SURYLVLRQRI ODFVSUHYLRXV\HDU`ODFVLVLQFOXGHGLQ5DWHVDQG7D[HV

5HODWHGSDUW\UHODWLRQVKLSVWUDQVDFWLRQVZDUUDQWLQJGLVFORVXUHVXQGHU$6LVVXHGE\7KH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWV

RI,QGLDDUHDVXQGHU

1DPHVDQGUHODWLRQVKLSRIWKHSDUWLHV

1DPH 5HODWLRQVKLS

5HOD[R5XEEHU3ULYDWH/LPLWHG $VVRFLDWHFRPSDQ\

0DUYHO3RO\PHUV3ULYDWH/LPLWHG $VVRFLDWHFRPSDQ\

1XZDYH6KRHV $VVRFLDWHFRQFHUQ

3DWHO2LO0LOOV $VVRFLDWHFRQFHUQ

6KUL0RRO&KDQG'XD0HPRULDO6RFLHW\ (QWLWLHVZKHUH.H\0DQDJHPHQW3HUVRQQHO

6KULPDWL5DP'LWWL'XD0HPRULDO6RFLHW\ H[HUFLVHVLJQLILFDQWLQIOXHQFH

.H\0DQDJHPHQW3HUVRQQHOWKHLUUHODWLYHV

.H\0DQDJHPHQW3HUVRQQHO

0U5DPHVK.XPDU'XD 0DQDJLQJ'LUHFWRU

0U0XNDQG/DO'XD :KROH7LPH'LUHFWRU

0U1LNKLO'XD :KROH7LPH'LUHFWRU

5HODWLYHV

0V8VKD'XD :LIHRI:KROH7LPH'LUHFWRU

0V/DOLWD'XD :LIHRI0DQDJLQJ'LUHFWRU

0U5LWHVK'XD 6RQRI:KROH7LPH'LUHFWRU

0U1LWLQ'XD 6RQRI:KROH7LPH'LUHFWRU

0U*DXUDY'XD 6RQRI0DQDJLQJ'LUHFWRU

0V6DNVKL'XD 'DXJKWHURI0DQDJLQJ'LUHFWRU

0U5DKXO'XD 6RQRI0DQDJLQJ'LUHFWRU

0V*DULPD'XD :LIHRI:KROH7LPH'LUHFWRU

0V6KDVKL0HKUD 6LVWHURI0DQDJLQJ'LUHFWRU

0V$DO\D'XD 'DXJKWHURI:KROHWLPH'LUHFWRU

6K5DPHVK.XPDU'XD+8) +8)

6K0XNDQG/DO'XD+8) +8)

6K0RRO&KDQG'XD+8) +8)

`


50/5648


'LVFORVXUHRI5HODWHGSDUW\WUDQVDFWLRQV

` LQ/DFV

7UDQVDFWLRQV

$VVRFLDWHV .H\

PDQDJHPHQWSHUVRQQHO

UHODWLYHV

7RWDO $VVRFLDWHV .H\

PDQDJHPHQWSHUVRQQHO

UHODWLYHV

7RWDO

6DOHRIJRRGV

3XUFKDVHRIJRRGV1HWRIWD[HV

3XUFKDVHRI$VVHWV1HWRIWD[HV

6DOHRI$VVHWV1HWRIWD[HV

5HQWSDLG

5HQGHULQJRIVHUYLFHV-REZRUN

5HFHLYLQJRIVHUYLFHV

*XDUDQWHHVFROODWHUDOVWDNHQ

'LYLGHQGSDLGWRVKDUHKROGHUV 3D\PHQWRIVDODU\SHUTXLVLWHV

&RPPLVVLRQ

/RDQV


51/5649


(PSOR\HH%HQHILWV

$'HILQHG&RQWULEXWLRQ3ODQ

'XULQJWKH\HDUWKHFRPSDQ\KDVUHFRJQLVHGWKHIROORZLQJDPRXQWLQWKH6WDWHPHQWRI3URILW/RVV

` LQ/DFV

)XQG

(PSOR\HUV&RQWULEXWLRQWR3URYLGHQW3HQVLRQ)XQG

(PSOR\HUV&RQWULEXWLRQWR(6,&6FKHPH

(PSOR\HUV&RQWULEXWLRQWR/,&*UDWXLW\6FKHPH

7KHDERYHLQFOXGHV(PSOR\HU&RQWULEXWLRQWR3URYLGHQWDQG3HQVLRQ)XQGRQDFFRXQWRI&RQWUDFWXDO/DERXUDPRXQWLQJWR

`ODFV3UHYLRXV


52/5650


(DUQLQJSHUVKDUH(36FRPSXWHGLQDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUGLVDVXQGHU

` LQ/DFV

3DUWLFXODUV

3URILW$IWHU7D[

1RRIVKDUHLVVXHG

%DVLFGLOXWHG(DUQLQJSHUVKDUHRI`HDFK`

)RUHLJQ&XUUHQF\([SRVXUH

$PRXQWLQ/DFV

3XUSRVH &XUUHQF\ $VDW

$VDW

D8QKHGJHG)RUHLJQ&XUUHQF\([SRVXUH

2XWVWDQGLQJ,PSRUW&UHGLWRUV 86'

2XWVWDQGLQJ,PSRUW&UHGLWRUV (852

2XWVWDQGLQJ([SRUW'HEWRUV 86'

2XWVWDQGLQJ,QWHUHVWRQ)RUHLJQ&XUUHQF\/RDQV 86' E7KHGHWDLOVRI'HULYDWLYHV2XWVWDQGLQJ

)RUZDUG&RQWUDFWV,PSRUW&UHGLWRUV 86'

)RUZDUG&RQWUDFWV,PSRUW2UGHUV 86'

)RUZDUG&RQWUDFWV([SRUW'HEWRUV 86'

)RUZDUG&RQWUDFWV([SRUW2UGHUV 86'

)RUZDUG&RQWUDFWV)RUHLJQ&XUUHQF\/RDQV 86'

7KHLQWHUHVWLQFOXGHVÒDFV3UHYLRXV\HDUÒDFVSDLGWR0DQDJLQJ'LUHFWRU

5HPXQHUDWLRQWR$XGLWRUV

` LQ/DFV

3DUWLFXODUV 6WDWXWRU\$XGLW)HH

7D[$XGLW

/LPLWHG5HYLHZRWKHUVHUYLFHV

7RWDO

,QFOXGHGLQ/HJDO3URIHVVLRQDOH[SHQVHVUHIHU1RWH1R

7KHVHJPHQWUHSRUWLQJDVSHU$6LVVXHGE\7KH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDLVQRWDSSOLFDEOH

([WUDRUGLQDU\LWHPVLQFOXGHORVVRIÒDFV3UHYLRXV


53/56

5(/$;2)227:($56/,0,7('5HJG2IILFH$OOLHG+RXVH,QGHUORN&KRZN2OG5RKWDN5RDG'HOKL

$77(1'$1&(6/,3

3OHDVHFRPSOHWHWKLVDWWHQGDQFHVOLSDQGKDQGLWRYHUDWWKHHQWUDQFHFRXQWHUDW6UL6DWK\D6DL,QWHUQDWLRQDO&HQWUH/RGKL5RDG,QVWLWXWLRQDO$UHD3UDJDWL9LKDU1HZ'HOKLRQ0RQGD\WK6HSWHPEHUDWDP

1$0(2)0(0%(5

)2/,212 122)6+$5(6

'3,'12 &/,(17,'12

1$0(2)0(0%(5

352;


54/56


55/56


56/56

relaxo footwears ltd 2012

Documents