KURAKU AJAY KUMAR

2019JULBO1123

THE MANAGEMENT
STATEMENT
Dear Shareholders,
Stepping up our commitment to the vision-backed strategy of
Raymond Reimagined pivoted on the core of customer-centricity, FY
2018-19 has been about accelerating the transformational change it set
in motion over the past few years. We are confronted with an
increasingly dynamic and volatile market catalyzed by intersection of
multiple digital technologies and newer global fashion trends leading to
a defining impact in shaping today’s consumer behavior. This paradigm
of an ever evolving new consumer gives us a great opportunity for
exponential growth over the coming years.

FUTURE-READY SUPPLY CHAIN AND LAUNCH OF NEW ERP Technology-

led innovations are enabling Raymond to achieve wider customer reach
while setting the stage for adoption of futuristic technologies such as
Artificial Intelligence, Machine Learning, and Advanced Data Analytics.

FACTORIES FOR INDUSTRY 4.0 Raymond’s state-of-the-art linen

manufacturing unit in Amravati commenced operations in April 2018.
With nearly 100% capacity utilization within a quarter of its launch, this
unit Raymond Limited | 5 has set a new global benchmark of fastest
scale-up from commissioning to peak capacity commercial production.
This new facility is consistently producing the highest quality of linen
yarn and fabric along with servicing not just the domestic demand, but
many global customers.
 THE MANAGEMENT
DISCUSSION & ANALYSIS
Economic and industry overview Global economy In 2018, the global
economy began its journey on a firm footing with estimated global
economic growth of 3.6% (Source: World Economic Outlook by
International Monetary Fund (IMF)). During the second half of 2018,
this rate of development gradually declined, owing to impending US-
China trade dispute and some slowdown across developed markets.
Emerging and developing markets of Asia maintained their steady
progress at 6.4% during 2018. However, it’s important to note that
India’s economy expanded at 7.1% in 2018 vis-à-vis 6.7% in 2017,
whereas China’s growth deteriorated from 6.9% in 2017 to 6.6% in
2018 (Source: IMF).

Global textile and apparel industry

The global textile and apparel industry is continuously evolving. Over

the years, it has witnessed multiple shifts in consumption and
production patterns, including shifts in geographical manufacturing
hubs, as the industry is driven by the availability of cheap labor. The
textile and apparel trade is predicted to grow at a CAGR of 3.7% during
the period 2018-28.

Indian textile industry

As a flagship business of Raymond Group, its Branded Textile segment

has a dominant position in the Indian market as a B2C branded player
for suiting and shirting fabrics. The vertical has grown over the years on
the back of strong channel partner relationships, some lasting more
than 50 years, as well as wide distribution reach.

Growth enablers

Growing urbanization, a higher disposable income of the Indian

households and a favorable demographic coupled with an aspiration
based purchasing pattern are key drivers for the industry and is likely to
benefit the Company. With the growing mobile and internet
penetration, e-commerce shopping is expected to act as a key enabler
in consistent sales volume growth for the industry.

All leading e-commerce platforms. While your Company is attuned to

judicious capital allocation strategies and sustainable growth, Raymond
continues to work towards achieving cost efficiencies and provide its
customers the best experience.

CORPORATE SOCIAL
RESPONSIBILITY
CSR initiatives of the Company aim towards inclusive development of
communities through a range of social interventions, enhancing skills
and building social infrastructure to improve their livelihood. Our CSR
approach focuses on development of communities around the vicinity
of our plants and other offices. Your Company’s focus areas for the
Financial Year 2018-19 under CSR are as under:

• Eradicating hunger, poverty and malnutrition;

• Promotion of healthcare including preventive healthcare;

• Promotion of education and employment-enhancing vocational skills;

• Ensuring environmental sustainability and animal welfare including
measures for reducing inequalities faced by socially & economically
backward groups;

• Other areas approved by the CSR Committee within the ambit of CSR
Rules as amended from time-to-time. The Company engages with
credible institutions, NGO’s, government agencies and other
foundations to leverage their expertise, networks and relationships in
implementing the CSR initiatives. Raymond’s CSR work is anchored
around supporting communities in and around its units in health,
education, women empowerment and skilling.

FINANCIAL HIGHLIGHTS

Standalone Financials(in crores)

Particulars March 2019 March 2018

Revenue From Operations 3276.39 3011.56
Operating Profit 118.61 91.45
Tax Expenses (Including Deferred Tax) 20.42 43.40
Monitory and Joint Ventures - -
Profit After Tax 73.82 98.07
The Standalone Gross Revenue from operations for FY 2019 was `
3276.39 crore (Previous Year: ` 3011.56). The Operating Profit stood at `
118.61 crore as against ` 91.45 crore in the Previous Year. The Net
Profit for the year stood at ` 73.82 crore against ` 98.07 crore reported
in the Previous Year.

CORPORATE GOVERNANCE
The Directors present the Company’s Report on Corporate Governance
for the year ended March 31, 2019, in terms of Regulation 34(3) read
with Schedule V of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (The “Listing Regulations”).

COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE

Raymond Limited (“The Company”) governance philosophy is based on

trusteeship, transparency and accountability.The Company’s Code of
Business Conduct and Ethics, Internal Code of Conduct for Regulating,
Monitoring and Reporting of Trades . The Company’s governance
framework is based on the following principles:

• Appropriate composition and size of the Board, with each member

bringing in expertise in their respective domains;

• Availability of information to the members of the Board and Board

Committees to enable them to discharge their fiduciary duties;

• Timely disclosure of material operational and financial information to

the stakeholders;
• Systems and processes in place for internal control; and

• Proper business conduct by the Board, Senior Management and

Employees. The Company continues to focus its resources, strengths
and strategies to achieve the vision of becoming a Global leader in
Textiles, Apparel, Garmenting and Lifestyle Brands while upholding the
core values of Quality, Trust, Leadership and Excellence.

DIRECTORS REPORT
In accordance with the provisions of Section 152 of the Act and the
Company’s Articles of Association, Mrs Nawaz Gautam Singhania,
Director retires by rotation at the forthcoming Annual General Meeting
and, being eligible offers herself for re-appointment. The Board
recommends her re-appointment for the consideration of the Members
of the Company at the forthcoming Annual General Meeting. Profile of

Mrs Nawaz Gautam Singhania has been given in the Notice convening
the Annual General Meeting.

FINANCE AND ACCOUNTS

During the year under review, your Company had redeemed 1750
Unsecured Redeemable Listed Non-Convertible Dear Members; Your
Directors are pleased to present the Ninety-Fourth Annual Report on
the business and operations of the Company together with the Audited
Financial Statements for the year ended March 31, 2019.
 TEN YEARS HIGHLIGHTS
2011- 2010- 2009-
YEARS 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 12 11 10

INCOME
Sales and Other 19590 1572 14270
Income 344052 313679 295095 291056 277160 227654 212559 3 70 6
% Increase 10.2
/Decrease 9.68 6.3 1.39 5.01 21.75 7.10 8.5 24.57 1 3.43
Gross Profit
before interest
and 3054
Depreciation 40196 33461 28776 35190 35334 33253 26531 32840 5 22938
As %of Sales and
Other Income 11.7 10.7 9.8 12.1 12.7 14.6 12.1 16.8 19.5 16.1
Net Profit / loss 1048
after Tax 7381.78 9807 3383 8209 10000 8812 4784 5635 7 2637
ASSETS
EMPLOYED
9597
Net Fixed Assets 111780 112219 85948 77904 77882 83150 97916 98477 2 98206
7401
Investments 70518 80413 83638 83445 77868 77018 74485 77730 3 89197
Net Current 5951
Assets 77596 28321 45389 65490 57044 56299 42047 43870 6 57282
21997 2295 24466
Total 259894 220952 214975 226839 205793 216467 214448 6 00 7
%Increase/Decr
ease 18 3 5 10 5 1 3 4 6 3

EQUITY FUNDS AND

EARNINGS
shareholders’ funds:
Shareholders’ 1885 1885 1885 1885 1885 1885 1885 1885 1885 1885
Investments
Bonus Shares 4253 4253 4253 4253 4253 4253 4253 4253 4253 4253
Reserves 130743 125568 116266 117706 110638 103940 96958 104292 100420 111153
Total 136881 131706 122404 123844 116776 110078 103096 110430 106558 117291
Contribution to 9917 13063 7545 6814 5958 5808 4856 5753 3528 5034
Country’s
Exchequer
Per equity share of ` 10:
Book Value 223 214.6 199.4 201.8 190.2 179.3 168 179.9 173.6 191.1
Earnings 12.03 15.98 5.51 13.4 16.3 14.4 (7.8) 9.2 (16.3) 4.1
Dividend 3 3 1.25 3 3 2 1 2.5 1 Nil
There has been quite an improvement in the sales from the past 10
years it has been gradually increasing and the company is doing very
well from the past 10 years and there has been no incident which
shows the weakness of the company and has a high potential growth
due to the high number of customers interested in the apparel
industry just that it the net profit compared to last year has gone
down by 2425.22 lacs it is because of the cost of material and increase
in expense the net profit has been reduced by such a huge figure.

FINANCIAL SECTION
STRENGTHS WEAKNESS
1. Other financial liabilities have 1.Other Equity has increased.

Been reduced. 2. Intangible assets have been decreased

2. Investments have increased 3.Investments in properties have been

Compared to last year reduced.

3. Noncurrent Borrowings has 4.Creditors payable have been increased

Been reduced

4. Total Assets have increased

5. Other Non Current Liabilities

Have been reduced

 BALANCE SHEET( In Lakhs)
I.

1. non-current assets
(a) Property, plant and equipment 2A 106,512.96 105,706.18
(b) Capital work - in – progress 2B 4,727.23 1,009.54
(c) Investment properties 3 479.75 500.76
(d) Intangible assets 4 60.23 5,002.25
(e) Investments in Subsidiaries, Associates and 5 37,819.18 39,819.17
Joint venture
(f) Financial assets
(i) Investments 5 (a) 7,517.36 7,084.60
(ii) Loans 6 10,576.84 18,384.41
(iii) Other financial assets 7 3,776.05 3,576.74
(g) Deferred tax assets (net) 35 1,586.16 1,145.44
(h) Current tax assets (net) 5,148.53 5,351.93
(i) Other non - current assets 8 4,707.44 4,251.64
2. Current assets
(a) Inventories 9 105,909.03 93,687.13
(b) Financial assets
(i) Investments 10 25,181.90 33,509.00
(ii) Trade receivables 11 67,592.98 61,894.69
(iii) Cash and cash equivalents 12 703.58 2,679.55
(iv) Bank balances other than cash and cash 13 9,481.22 4,014.13
equivalents
(v) Loans 14 8,378.19 -
(vi) Other financial assets 15 10,044.36 2,404.37
(c) Other current assets 16 15,518.36 9,366.26
Total Assets 425,721.35 399,387.79
II. EQUITY And LIABILITIES
1. equity
(a) Equity share capital 17 A 6,138.08 6,138.08
(b) Other equity 17 B 130,743.02 125,568.11
2. Liabilities
non-current liabilities
(a) Financial liabilities
(i) Borrowings 18A 18,946.50 41,067.93
(ii) Other financial liabilities 18B - 4,263.24
(b) Other noncurrent liabilities 19 1,444.48 1,842.82
Current liabilities
(a) Financial Liabilities
 (i) Borrowings 20 128,417.84 74,782.10
(ii) Trade payables
Total outstanding dues of micro enterprises and 21 131.12 136.48
small enterprises
Total outstanding dues of creditors other than 61,370.21 53,970.02
micro enterprises and small enterprises
(iii) Other Financial Liabilities 22 65,725.59 79,507.72
(b) Provisions 23 4,305.87 3,758.85
(c) Other current liabilities 24 8,498.64 8,352.44
Total equity and Liabilities 425,721.35 399,387.79

PROFIT AND LOSS

RAYMOND Income Statement Analysis

 Operating income during the year rose 11.6% on a year-on-year

(YoY) basis.
 The company's operating profit increased by 34.8% YoY during
the fiscal. Operating profit margins witnessed a fall and down at
8.8% in FY19 as against 7.3% in FY18.
 Depreciation charges increased by 15.4% and finance costs
increased by 26.6% YoY, respectively.
 Other income grew by 5.8% YoY.
 Net profit for the year grew by 23.5% YoY.
 Net profit margins during the year grew from 2.4% in FY18 to
2.6% in FY19.
I INCOME
Revenue from operations 25 327,638.75 301,155.96
Other income 26 16,413.53 12,522.67
Total Income 344,052.28 313,678.63
II EXPENSE
Cost of materials consumed 27 71,335.38 64,505.37
Purchases of stock-in-trade 28 81,686.15 82,460.03
Changes in inventories of finished goods, stock-in-trade, work- 29 (11,490.41) (23,639.39)
in-progress and property under development
Employee benefits expense 30 46,385.72 42,300.58
Finance costs 31 17,475.47 14,744.93
Depreciation and amortization expense 32 10,859.35 9,571.04
Other expenses
(a) Manufacturing and operating costs 33 A 41,955.94 41,382.45
(b) Costs towards development of property 33 B 8,702.91 10,510.99
(c) Other expenses 33 C 65,280.67 62,697.47
Total expenses 332,191.18 304,533.47
III Profit / (loss) before exceptional Items and tax 11,861.10 9,145.16
Iv exceptional Items - (gain)/loss, net 34 2,437.07 (5,001.97)
v Profit / (loss) before tax 9,424.03 14,147.13
vI Tax expense/(credit) 35
Current tax 2,482.97 3,046.55
Deferred tax (credit) / charge (440.72) 1,293.40
vII Profit/(Loss) for the year 7,381.78 9,807.18
vIII other Comprehensive Income
Items that will not be reclassified to profit or loss
Measurements of defined employee benefit plans 41 (20.10) (639.87)
Income tax relating to above items 7.03 221.45
Total other Comprehensive Income (net of tax) (13.07) (418.42)
Ix Total Comprehensive Income for the year 7,394.85 10,225.60
x earnings per equity share of ` 10 each : 36
Basic (`) 12.03 15.98
Diluted (`) 12.03 15.98