Escolar Documentos
Profissional Documentos
Cultura Documentos
ORDINARY BUSINESS :
1. To receive, consider and adopt the Audited Statement of Accounts together with Directors’ Report as also the Auditors’ Report
thereon for the year ended March 31, 2008.
3. To appoint a Director in place of Shri P.K. Bhandari, who retires by rotation and, being eligible, offers himself for reappointment.
4. To appoint a Director in place of Shri U.V. Rao, who retires by rotation and, being eligible, offers himself for reappointment.
5. To appoint a Director in place of Shri Nabankur Gupta, who retires by rotation and, being eligible, offers himself for reappointment.
6. To pass with or without modifications, the following Resolution as an Ordinary Resolution but in the event of the provisions of Section 224A of the
Companies Act, 1956 becoming applicable to the Company on the date of holding of this meeting, the same will be proposed as a Special Resolution:
“RESOLVED THAT Messrs. Dalal & Shah, Chartered Accountants, be and are hereby reappointed Auditors of the Company to hold office from the conclusion
of this meeting until the conclusion of the next Annual General Meeting on a remuneration of Rs.27.50 lakhs plus service tax as applicable and
reimbursement of actual travel and other out-of-pocket expenses.”
SPECIAL BUSINESS:
As a Special Resolution :
7. “RESOLVED THAT pursuant to the provisions of Sections 198, 309 (4) and all other applicable provisions, if any, of the Companies Act, 1956 or any
statutory modification(s) or re-enactment thereof, the consent of the Company be and is hereby accorded to the payment of commission of a sum not
exceeding 1% of the annual net profit of the Company computed in accordance with the provisions of Sections 198, 349 and 350 of the said Act, subject to
an overall ceiling of Rs.25 lakhs (Rupees Twenty Five Lakhs only) to such Directors of the Company (other than the Chairman and Managing Director and
Wholetime Director) in such proportion and manner as may be directed by the Board of Directors, for a period of three (3) years and such payment shall be
made in respect of the profits of the Company for the financial years commencing from April 1, 2008 to March 31, 2011.”
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Notes :
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF
HIMSELF AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY.
2. Proxies, in order to be effective, must be received at the Registered Office of the Company not less than 48 hours before the commencement
of the Meeting.
3. The Explanatory Statement setting out the material facts concerning Special Business in respect of Item No. 7 of the accompanying Notice
as required by Section 173 of the Companies Act, 1956, is annexed hereto.
4. The Register of Members and Share Transfer Books of the Company will remain closed from June 3, 2008 to June 18, 2008 (both days inclusive)
in connection with the Annual General Meeting.
5. The dividend as recommended by the Board, if declared at the meeting, will be paid on or after June 19, 2008 to those members whose names appear
on the Company’s Register of Members on June 18, 2008. In respect of the shares in electronic form, the dividend will be payable on the basis of
beneficial ownership as per details furnished by National Securities Depository Limited and Central Depository Services (India) Limited as on June 2, 2008
for this purpose.
6. Members are requested to notify immediately any change in their address/bank mandate to their respective Depository Participants (DPs)
in respect of their electronic share accounts and to the Registrar and Share Transfer Agent of the Company at Intime Spectrum Registry Limited,
C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West), Mumbai - 400 078, Maharashtra, in respect of their physical share folios, if any.
7. Dividend for the Financial Year ended March 31, 2001, which remains unpaid or unclaimed, will be due for transfer to the Investor Education and Protection
Fund of the Central Government later this year, pursuant to the provisions of Section 205C of the Companies Act, 1956.
Members, who have not yet encashed their dividend warrants for the Financial Year ended March 31, 2001 or any subsequent Financial Years are requested
to lodge their claims with the Company/Intime Spectrum Registry Limited, without delay. Members are advised that no claims shall lie against the said Fund
or the Company for the amounts of dividend so transferred to the said Fund.
8. Members holding shares in electronic form may please note that their bank details as furnished by the respective Depositories to Intime Spectrum Registry
Limited will be printed on their dividend warrants as per the applicable regulations of the Depositories and the Company/Intime Spectrum Registry Limited
will not entertain any direct request from such members for deletion of change in such bank details. Further, instructions if any, already given by them in
respect of shares held in physical form will not be automatically applicable to the dividend paid on shares in electronic form. Members may, therefore, give
instructions regarding bank accounts in which they wish to receive dividend, directly to their Depository Participants.
9. Reappointment of Directors :
At the ensuing Annual General Meeting Shri P.K. Bhandari, Shri U.V. Rao and Shri Nabankur Gupta, retire by rotation and being eligible, offer
themselves for reappointment. Pursuant to Clause 49 (VI) (A) of the Listing Agreement relating to the Code of Corporate Governance, the particulars of the
aforesaid Directors to be reappointed are given below :
a) Shri P. K. Bhandari, aged 50 years is a commerce and law graduate from the University of Kolkata and a Fellow Member of the Institute of Chartered
Accountants of India and an Associate Member of the Institute of Company Secretaries of India and has over 24 years of experience in the field of project
finance, industry, business and corporate management.
Shri P. K. Bhandari, who joined the Company on August 27, 1989 played a key role in strategising and implementing the Company’s restructuring program,
which included hiving off its non-core businesses in steel, cement and synthetics and consolidating its core - textile, garment and files businesses
through merger and acquisitions.
Shri Bhandari joined the Board of Directors of the Company as Wholetime Director on April 24, 2003. Shri P. K. Bhandari was Group President of the
Company from April 1, 2005 to January 30, 2008. Shri P. K. Bhandari is a member of the Shareholders’/Investors’ Grievances Committee of the
Board of Directors of the Company. Shri Bhandari was honoured with a ‘Special Commendation’ for his outstanding performance in the mergers
and acquisitions category of the “CFO of the Year” award instituted by The Economist in association with American Express.
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The other Directorships/Committee memberships of Shri P. K. Bhandari are as follows :
b) Shri U. V. Rao, aged 78 years, an electrical engineer joined the Board of Directors of the Company on
September 29, 1994. Shri Rao has also participated in Advanced Management programme from Harvard
University. Shri Rao has had over 43 years of experience in business and industry besides project experience.
He was the Chief Executive & Managing Director of Larsen & Toubro Limited.
c) Shri Nabankur Gupta aged 59 years is a graduate from IIT, Delhi in Electrical & Electronics Engineering.
Shri Gupta joined the Company as Group President on August 1, 2000 and was co-opted on the Board of
Directors of the Company as Wholetime Director effective January 15, 2001. Shri Gupta relinquished his
position as Wholetime Director and Group President of the Company with effect from April 1, 2005.
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Shri Gupta possesses vast, rich and varied experience of over three decades in project management and marketing of
consumer durable. Shri Gupta pioneered the concept of sub-branding and subsequently, multi-branding in the area of
consumer durable for the first time in India.
Shri Gupta was the first Indian to receive recognition by the Advertising Age International, New York, in 1995 with the
title of ‘Marketing Superstar’.
The other Directorships/Committee memberships of Shri Nabankur Gupta are as follows :
Name of the Company Board Position held Committee Memberships
Colorplus Fashions Limited Director –
J.K. Investo Trade (India) Limited Director Chairman Audit Committee
Member Remuneration Committee
Member Shareholders’/Investors
Grievance Committee
J.K. Helene Curtis Limited Director –
Cravatex Limited Director –
e, Lexicon Public Relations & Corporate
Consultants Limited Director –
Pritish Nandy Communications Limited Director Member – Audit Committee
B.P. Ergo Limited Director –
P.T. Jaykay Files, Indonesia Board of
Commissioner –
Quantum Advisors Private Limited Director –
PNC Wellness Private Limited Director –
Blueocean Capital and Advisory
Services Private Limited Director –
4
BOARD OF DIRECTORS
DR. VIJAYPAT SINGHANIA, Chairman Emeritus
GAUTAM HARI SINGHANIA, Chairman & Managing Director
B. K. KEDIA
NANA CHUDASAMA
ANANT SINGHANIA (upto 29.03.2008)
B. V. BHARGAVA
U. V. RAO
I. D. AGARWAL
NABANKUR GUPTA
P. K. BHANDARI (Wholetime Director - upto 23.04.2008)
MANAGEMENT EXECUTIVES
GAUTAM HARI SINGHANIA, Chairman & Managing Director
DEEPAK KHETRAPAL, Chief Operating Officer
ANIRUDDHA DESHMUKH, President – FMCG & Retail
HARSHAL JAYAVANT, President – Engineering Business
K. A. NARAYAN, President – HR
ROBERT LOBO, President – Shirting Fabric Business
SHREYAS JOSHI, President – Group Apparel
S. K. SINGHAL, President – Textiles
H. SUNDER, President – Finance, Chief Financial Officer
DIRECTOR - LEGAL & COMPANY SECRETARY
R. NARAYANAN
BANKERS
BANK OF INDIA
CONTENTS Pages
BANK OF MAHARASHTRA
Directors’ Report & 2-10 BANK OF AMERICA
Management Discussion
CENTRAL BANK OF INDIA
and Analysis
CITIBANK N.A.
Corporate Governance Report 11-18
HDFC BANK LIMITED
Shareholder Information 19-23
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
Ten-Year Highlights 24
STATE BANK OF INDIA
Auditors’ Report 25-27 STANDARD CHARTERED BANK LIMITED
Balance Sheet 28
AUDITORS
Profit and Loss Account 29
DALAL & SHAH
Cash Flow Statement 30
Chartered Accountants
Schedules ‘1’ to ‘15’ 31-45
INTERNAL & OPERATIONAL AUDITORS
Schedule ‘16’ – Notes Forming 46-59
Part of the Accounts MAHAJAN & AIBARA
Annexure I – Statement of Significant 60-61 Chartered Accountants
Accounting Policies and Practices
REGISTERED OFFICE
Research and Development 61 PLOT NO. 156/H. NO. 2, VILLAGE ZADGAON
Expenditure Account
RATNAGIRI, 415 612 (MAHARASHTRA)
Consolidated Account 62-77
Details of Balance Sheet and 77 REGISTRAR & SHARE TRANSFER AGENT
Income and Expenditure of INTIME SPECTRUM REGISTRY LIMITED
Subsidiary Companies C-13, PANNALAL SILK MILLS COMPOUND, L. B. S MARG.
Balance Sheet Abstract and 78 BHANDUP (WEST) MUMBAI - 400 078
Company’s General Business Profile
2. APPROPRIATIONS
An amount of Rs. 6.61 crores (Previous Year: Rs.40.00 crores) is credited to the General Reserves. Out of the amount available for
appropriation, your Directors recommend a dividend of 25% (50%) on Equity Shares. The dividend tax on the proposed dividend will be
Rs.2.61 crores (Previous Year: Rs.5.22 crores).
3. ECONOMY OVERVIEW
India has been on a high growth path for some years now. However, during the past few months, worrying developments like the housing
crisis in USA, high inflation – especially in food, fuel and commodities – have emerged. This could increase costs of operations, dampen
consumer sentiment and moderate growth going forward.
A. TEXTILE DIVISION
Industry Conditions
The textiles and apparels sector is a major contributor to the Indian economy in terms of foreign exchange earnings and employment.
Moreover certain natural advantages including domestic cotton availability and external factors including progress on WTO, have fueled the
growth of this industry in India with a clear competitive edge. The domestic textiles and apparels market in India is witnessing strong growth
owing to a young spending population and a rapid increase in organised retail. Consumer preferences are also undergoing a metamorphosis
as never seen before. The change being witnessed can be attributed to several factors including increasing purchasing power of the masses,
shifts in the buying behavior, demography dynamics, and growing urbanisation, opening up of the retail segment to private and foreign players
and changing trends/lifestyle. Investments in the textile sector have increased significantly over the last three to four years. Going forward, by
2012, investment in the textiles and clothing industry is estimated to touch US $ 38.14 billion.
Continuing the robust growth of the organised retail in India, according to the Credit Rating and Information Services of India Ltd., the industry
raked in US $ 25.44 billion turnover in 2007-08 as against US $ 16.99 billion in 2006-07, a whopping growth rate of 50 per cent.
Consequently prospects for this sector in India continues to be buoyant.
Opportunities and Challenges
The opportunities thrown open by the buoyant market for textiles in India is good for those companies, such as yours that are geared with strong
brand positioning, fully integrated production facilities, and the technical and innovation capabilities to deliver the kind of patterns, weaves and
designs that are demanded by the growing consumer class.
On the exports side, the soaring value of the rupee, took textile exporters in India by surprise in 2007. The rupee rose more than 10% against the
US dollar on an average during the year, resulting in many smaller units facing difficulties.
Apart from the escalating rupee, textile firms also had to cope with higher interest rates, high raw material prices especially wool, and continued
lack of infrastructure.
Delay in processing and disbursements of TUF loan subsidies also hamper investment in the sector and drives up the cost of funds.
Overview
The Company is a market leader in the textiles sector in India, has a powerful brand ‘Raymond’ and strong retail presence in the form of
‘The Raymond Shop’ (‘TRS’) domestically. While focusing on its vision of being the leader in fashion and lifestyle segment your Company is now
also establishing itself as a preferred supplier of value-added premium fabric in the international markets.
The Company continues to focus on the booming retail sector and is now concentrating on penetrating into the Tier 3 and 4 towns of the
country. The Company has also forayed into the women’s wear segment with offerings in the corporate and smart clothing category. The
Company is on its way to become a lifestyle solution for discerning customers with an offering of a range of fabrics, garment and accessories
in a premium shopping environment.
B. Technology Absorption :
(a) Research and Development ( R & D) :
The R&D Department of Textile Division strives to develop and provide exclusive and innovative products under its brand. Some of
the products developed and introduced during the year under review were:
1 . Jacketing fabric based on 100 percent exotic and luxurious Vicuuna fibers.
2 . Range of fabrics based on latest type of elastomeric polymeric yarn (Dow XLA) imparting unique stretch properties to poly
wool and wool fabrics.
3 . New range of extra black (deep black) polyester-wool fabrics with anti-lint finish.
4 . Range of polyester-wool and wool fabrics with silver based antimicrobial finish.
5 . A range of sparkling fabrics with fine metallic effect for ceremonial wear.
6. Range of fine soft fabrics, with special wool enzyme finish.
In order to maintain the leadership of JKFT in files business, 13 new SKU’s have been developed for the Export market for customer
specific engineering and agro applications.
5. LPG (Kgs.)
a) Textile Division
Current Year 95909 46 48
Previous Year 108972 46 42
b) Files & Tools Division
Current Year 85543 43 50
Previous Year 76379 35 46
c) Denim Division
Current Year — — —
Previous Year 76140 27 35
6. Natural Gas (Lacs Cubic Mtr.)
Textile Division
Current Year 29 289 10
Previous Year — — —
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INTERNAL AUDITORS
The Company has appointed a firm of Chartered Accountants as Internal Auditors to review the internal control systems of the Company and
to report thereon. The report of the Internal Auditors is reviewed by the Audit Committee.
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REMUNERATION POLICY
A. Remuneration to Non-Executive Directors
The Non-Executive Directors are paid remuneration by way of Commission and Sitting Fees. The shareholders’ approval has been sought at the
ensuing 83rd Annual General Meeting for payment of commission of Rs.25 lakhs to the Non-Executive Directors of the Company for a period of
three years for financial year commencing from April 1, 2008 to March 31, 2011. Non-Executive Directors are paid sitting fees @ Rs.10,000 for
each meeting of the Board or any Committee thereof attended by them.
The compensation of Non-Executive Directors is approved unanimously by the Board.
None of the Non-Executive Directors has any material pecuniary relationship or transactions with the Company.
B. Remuneration to Chairman and Managing Director and Wholetime Director(s)
The appointment of Chairman and Managing Director and Wholetime Director(s) is governed by resolutions passed by the Board of Directors
and shareholders of the Company, which covers the terms of such appointment and remuneration read with the service rules of the Company.
Payment of remuneration to Chairman and Managing Director and Wholetime Director(s) is governed by the respective Agreements executed
between them and the Company. Remuneration paid to Chairman and Managing Director and Wholetime Director(s) is recommended by the
Remuneration Committee, approved by the Board and is within the limits set by the shareholders at the Annual General Meetings. The remuneration
package of Chairman and Managing Director and Wholetime Director(s) comprises of salary, perquisites and allowances, commission and
contributions to Provident and other Retiral Benefit Funds as approved by the shareholders at the Annual General Meetings. Annual increments
are linked to performance and are decided by the Remuneration Committee and recommended to the Board for approval thereof.
The remuneration policy is directed towards rewarding performance, based on review of achievements. It is aimed at attracting and retaining
high caliber talent.
There is no separate provision for payment of severance fees under the resolutions governing the appointment of Chairman and Managing
Director and Wholetime Director(s).
Presently, the Company does not have a scheme for grant of stock options or performance linked incentives for its Directors.
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Name of the Director Salary (Rs.) Benefits (Rs.) Commission (Rs.) Service Contract
Shri Gautam Hari Singhania,
Chairman and Managing Director 1,80,00,000 1,83,93,242 1,48,000 5 years
Shri P. K. Bhandari*,
Wholetime Director 93,60,000 52,21,466 1,48,000 5 years
* Shri P. K. Bhandari completed his term as Wholetime Director on April 23, 2008.
COMPOSITION
The composition of the Committee of Directors is as under :
Name of the Director Position Category
Shri Nana Chudasama Chairman Independent, Non-Executive
Shri Gautam Hari Singhania Member Promoter, Executive
Shri P. K. Bhandari Member Non-Promoter, Executive
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D E C L A R A T I O N
As provided under Clause 49 of the Listing Agreement with the Stock Exchanges, all Board members and Senior Management Personnel have
affirmed compliance with Raymond Limited Code of Business Conduct and Ethics for the year ended March 31, 2008.
For Raymond Limited
Gautam Hari Singhania
Chairman & Managing Director
Mumbai: April 29, 2008
17
The Members of
Raymond Limited
We have reviewed the records concerning the Company’s compliance of conditions of Corporate Governance as stipulated in Clause 49 of the
Listing Agreement entered into, by the Company, with Stock Exchanges of India, for the financial year ended 31st March, 2008.
The Compliance of the conditions of corporate governance is the responsibility of the management. Our examination was limited to procedures and
implemention thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit
nor an expression of opinion on the financial statements of the Company.
We have conducted our review on the basis of the relevant records and documents maintained by the Company and furnished to us for the review,
and the information and explanations given to us by the Company.
Based on such a review and to the best of our information and according to the explanations given to us, in our opinion, the Company has complied
with the conditions of Corporate Governance, as stipulated in Clause 49 of the said Listing Agreement.
We further state that, such compliance is neither an assurance as to the future viability of the Company, nor as to the efficiency or effectiveness with
the management has conducted the affairs of the Company.
Ashish Dalal
Partner
Membership No. 33596
Mumbai: April 29, 2008
18
Annual General Meeting: Day, Date and Time : Wednesday, June 18, 2008 at 11.00 A.M.
Venue : Registered Office of the Company at:
Plot No. 156/H. No.2, Village Zadgaon,
Ratnagiri 415 612, Maharashtra.
Financial Calendar:
• Financial reporting for the quarter ending June 30, 2008 : End July 2008
• Financial reporting for the half year ending September 30, 2008 : End October 2008
• Financial reporting for the quarter ending December 31, 2008 : End January 2009
• Financial reporting for the year ending March 31, 2009 : End April 2009
Date of Book Closure: June 3, 2008 to June 18, 2008 (both days inclusive).
Dividend:
The dividend as recommended by the Board of Directors, if declared at the ensuing Annual General Meeting, will be paid at par on or after
June 19, 2008 to those members whose names appear on the Company’s Register of Members as holders of equity shares in physical form on
June 18, 2008. In respect of shares held in dematerialised form, the dividend will be paid on the basis of beneficial ownership details to be
furnished by National Securities Depository Limited and Central Depository Services (India) Limited for this purpose, as of June 2, 2008.
19
20
21
Outstanding GDRs/ Warrants and Convertible Bonds, conversion date and likely impact on equity :
Outstanding number of GDRs represent 901362 equity shares (1.47% of the total share capital) as on March 31, 2008. Each GDR represents 2
underlying equity shares. Since the underlying equity shares represented by GDRs have been allotted in full, the outstanding GDRs have no impact
on the equity of the Company.
The Company during the financial year has issued 61,38,085 warrants on a preferential basis to one of the promoters as per the SEBI (Disclosure
and Investor Protection) Guidelines, 2000 entitling the warrant holders to apply for equivalent number of fully paid equity shares of Rs.10/- each at
a price of Rs. 340/- per share. In terms of the special resolution, the said warrants have been issued upon payment of 10% of the amount. The
balance 90% of the amount is payable within 18 months from the date of issue of said warrants.
Unclaimed Dividends :
Pursuant to Section 205C of the Companies Act, 1956, dividends that are unpaid/unclaimed for a period of seven years from the date they
became due for payment are required to be transferred by the Company to the Investor Education and Protection Fund (IEPF) administered by
the Central Government. Given below are the dates of declaration of dividend and corresponding dates when unpaid/unclaimed dividends are
due for transfer to IEPF:
Financial Year Date of declaration of Dividend Due Date for transfer to IEPF
2000-2001 June 22, 2001 July 28, 2008
2001-2002 June 24, 2002 July 30, 2009
2002-2003 June 11, 2003 July 17, 2010
2003-2004 June 30, 2004 August 6, 2011
2004-2005 June 16, 2005 July 22, 2012
2005-2006 June 23, 2006 July 29, 2013
2006-2007 June 18, 2007 July 24, 2014
Members who have so far not encashed their dividend warrants are requested to write to the Company/Registrar to claim the same, to avoid
transfer to IEPF. Members are advised that no claims shall lie against the said Fund or the Company for the amounts of dividend so transferred to
the said Fund.
Nomination:
Individual shareholders holding shares singly or jointly in physical form can nominate a person in whose name the shares shall be transferable in
case of death of the registered shareholder(s). Nomination facility in respect of shares held in electronic form is also available with the depository
participants as per the bye-laws and business rules applicable to NSDL and CDSL. Nomination forms can be obtained from the Company’s
Registrar and Share Transfer Agent.
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Aviation Division : Mahindra Towers, B Wing, 2nd Floor, P. B. Marg, Worli, Mumbai 400 018.
23
2007-08 * 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-2000 1998-99
INCOME
Sales and Other Income 146015 137497 140637 122639 116853 109588 103208 147279 167630 160084
% Increase / (Decrease) 6.2 (2.2) 14.7 4.9 6.6 6.2 (29.9) (12.1) 4.7 3.5
Gross Profit before interest
and depreciation 22287 34840 27170 18442 27305 21820 18844 52570 23115 30292
As % of Sales and
Other Income 15.3 25.3 19.3 15.0 23.4 19.9 18.3 35.7 13.8 18.9
Net Profit after Tax 6612 20125 12229 7682 13184 9143 8364 33341 3262 8659
ASSETS EMPLOYED
Net Fixed Assets 73311 76174 84512 57563 42122 40602 37857 37079 85373 93504
Investments 104730 98448 73660 73428 71587 61231 58766 60744 18583 9683
Net Current Assets 58543 45343 44013 42083 44381 46623 50263 42009 53072 65691
Total 236584 219965 202185 173074 158090 148456 146886 139832 157028 168878
Shareholders’ Investments 1885 1885 1885 1885 1885 1885 1885 1885 3256 3256
Bonus Shares 4253 4253 4253 4253 4253 4253 4253 4253 4253 4253
Reserves 133690 129478 112857 104256 98717 89297 83388 81252 73307 71386
Total 139828 135616 118995 110394 104855 95435 89526 87390 80816 78895
Contribution to
Country’s Exchequer 7998 10306 11011 10031 17672 17096 17410 27062 31204 30619
Per Equity Share of Rs.10: (Rupees)
Book Value 231.2 220.9 193.9 179.9 170.8 155.5 145.9 142.4 107.6 105.1
Earnings 11.8 32.9 19.7 13.6 21.6 14.7 14.4 35.6 4.3 11.5
Dividend 2.5 5.0 5.0 4.0 5.5 4.5 4.5 3.0 1.5 2.0
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Ashish Dalal
Partner
Mumbai: 29th April, 2008 Membership No.33596
25
i. (a) The Company has generally maintained proper records showing particulars, including quantitative details and situation of fixed assets;
(b) As explained to us, the fixed assets have been physically verified by the management at reasonable intervals, in a phased verification
programme, which, in our opinion, is reasonable, looking to the size of the Company and the nature of its business. According to the
information and explanations given to us, discrepancies noticed on physical verification have been properly dealt with in the books of
account;
(c) During the year, the Company has not disposed off any substantial part of its fixed assets so as to affect its going concern;
ii. (a) As explained to us, inventories have been physically verified during the year by the management. Inventories lying with outside parties have
been confirmed by them at the close of the year;
(b) The procedures explained to us, which are followed by the management for physical verification of inventories, are, in our opinion,
reasonable and adequate in relation to the size of the Company and the nature of its business;
(c) On the basis of our examination of the inventory records of the Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies which were noticed on physical verification of inventory as compared to book records, have been
properly dealt with in the books of account;
iii. According to the information and explanations given to us, the Company has not granted/taken any loan, secured or unsecured, to/from
companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956;
iv. In our opinion and according to the information and explanations given to us, there are generally adequate internal control procedures
commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for sale
of goods and services. The implementation of ERP Solution over various businesses/locations is still under progress in phases and the controls
under the said solution are being deployed. During the course of our audit, we have not observed any continuing failure to correct major
weaknesses in internal control;
v. (a) On the basis of the audit procedures performed by us, and according to the information, explanations and representations given to us, the
particulars of all transactions in which directors were interested, as contemplated under Section 297 and Section 299 of the Companies
Act, 1956, and which were required to be entered in the register maintained under Section 301 of the said Act, have been so entered;
(b) In our opinion, and according to the information and explanations given to us, there were no transactions exceeding the value of Rupees
Five lacs in respect of any party during the year;
vi. The Company has not accepted any deposits from the public;
vii. On the basis of internal audit reports broadly reviewed by us, we are of the opinion that, the coverage of internal audit functions carried out by
a firm of Chartered Accountants appointed by the management, is commensurate with the size of the Company and nature of its business.
viii. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 in respect of the Company’s products to which the said rules
are made applicable, and are of the opinion that, prima-facie, the prescribed accounts and records have been made and maintained. We
have, however not made a detailed examination of the records with a view to determine whether they are accurate;
ix. (a) According to the records of the Company, it has generally been regular in depositing undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees’ State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other statutory dues with the appropriate authorities;
(b) On the basis of our examination of the documents and records, and explanations and information given to us, the following disputed
statutory dues on account of Sales Tax, Excise Duty, Entry Tax and Cess on Royalty which have not been deposited with the appropriate
authorities are as under:
26
Ashish Dalal
Partner
th
Mumbai: 29 April, 2008 Membership No.33596
27
SOURCES OF FUNDS:
Shareholders’ Funds:
Share Capital 1 6138.08 6138.08
Share Warrants 1A 2086.95 –
Reserves and Surplus 2 133690.42 129477.86
141915.45 135615.94
Loan Funds: 3
Secured Loans 50498.04 56686.05
Unsecured Loans 38203.04 22074.96
88701.08 78761.01
Deferred Tax Liability (Net)
(Refer Note 18) 5967.58 5587.73
TOTAL 236584.11 219964.68
APPLICATION OF FUNDS:
Fixed Assets: 4
Gross Block 134540.27 123003.48
Less: Depreciation and Amortisation 62587.76 55397.84
Net Block 71952.51 67605.64
Capital work-in-progress 1358.36 8568.51
73310.87 76174.15
Investments 5 104730.20 98447.50
Current Assets, Loans and Advances: 6
Inventories 32974.18 28366.36
Sundry Debtors 28988.56 26877.07
Cash and Bank Balances 2182.48 2561.40
Other Current Assets 5775.49 2969.90
Loans and Advances 24421.59 21715.86
94342.30 82490.59
Less:
Current Liabilities and Provisions: 7
Current Liabilities 28245.53 29083.90
Provisions 7553.73 8063.66
35799.26 37147.56
Net Current Assets 58543.04 45343.03
TOTAL 236584.11 219964.68
Notes forming part of the Accounts 16
28
29
30
Authorised :
10,00,00,000 Equity Shares of Rs.10 each 10000.00 10000.00
10000.00 10000.00
Issued and Subscribed :
* 6,13,80,853 Equity Shares of Rs.10 each, fully paid-up 6138.08 6138.08
Per Balance Sheet 6138.08 6138.08
31
A. Assets
Land -
Freehold 2520.14 79.41 — 2599.55 — — — — 2599.55 2520.14
Leasehold 246.25 — — 246.25 17.82 3.00 — 20.82 225.43 228.43
Buildings 15978.81 975.78 77.22 16877.37 4436.15 585.16 52.36 4968.95 11908.42 11542.66
Plant and Machinery,
Electrical Installations
and Equipments 86902.25 3227.92 716.37 89413.80 45789.07 4997.06 563.32 50222.81 39190.99 41113.18
Furniture, Fixtures and
Office Equipment 3711.15 944.91 210.45 4445.61 2499.51 382.67 155.72 2726.46 1719.15 1211.64
Livestock (at book value) 15.78 — 3.07 12.71 — — — — 12.71 15.78
Vehicles 1985.47 383.55 160.30 2208.72 1175.60 314.71 135.14 1355.17 853.55 809.87
Aircraft 9853.00 — — 9853.00 784.13 552.60 — 1336.73 8516.27 9068.87
Boats and Water Equipments 537.04 6717.97 15.12 7239.89 320.30 877.99 10.25 1188.04 6051.85 216.74
Software 1253.59 389.78 — 1643.37 375.26 393.52 — 768.78 874.59 878.33
Per Balance Sheet 123003.48 12719.32 1182.53 134540.27 55397.84 8106.71 @ 916.79 62587.76 71952.51 67605.64
Previous year ’s Total 136672.80 36430.20 50099.52 123003.48 67765.80 6305.51 @18673.47 55397.84 67605.64
@ Net after adjustments on account of Excess provision for depreciation/amortisation Rs. 8.40 lacs
relating to earlier years (Previous year Rs.9.93 lacs).
B. Capital work-in-progress 1358.36 8568.51
32
* The Company has agreed with the lenders (Banks) of some of these Companies for not disposing off these investments without their prior consent.
33
34
35
21872.22 9083.27
36
37
38
F. Warrants (Quoted):
Cholamandalam DBS Finance Limited 31955 — — —
33359.62 23412.43
Less: Provision for diminution in value of Current Investments (320.64) (276.92)
Total - Current Investments 33038.98 23135.51
Total - Investments 104693.63 98447.50
Notes : Split Shares
# The Shares have been split in FV Rs.10 to Rs.2
III. APPLICATION MONEY PENDING ALLOTMENT
Equity Application Money - State Bank of India (Rights Issue) 36.57 —
Nos. Acquisition
Cost
(Rs. in lacs)
A. Dividend Option (Units of Rs.10 each, unless otherwise specified):
1. Birla Cash Plus - Instl.Prem. Daily Dividend Reinvestment 140556054.80 14083.01
2. TATA Liquid Super High Investment Fund - Daily Dividend 719325.61 8017.03
(Units of Rs.1000 each)
3. Kotak Liquid (Institutional Premium ) - Daily Dividend 69745435.56 8528.54
4. JM Money Manager Fund Super Plus Plan - Daily Dividend (171) 74349641.98 7436.34
5. HDFC Cash Management Fund - Saving Plan -
Daily Dividend Reinvestment 126179279.66 13420.93
6. HDFC Cash Management Fund - Call Plan -
Daily Dividend Reinvestment - option 108596862.88 11322.96
7. DBS Chola Treasury Management Fund - Daily Dividend 10029067.38 1003.47
8. Kotak FMP 3M Series 13 - Dividend (Weekly) 73201.74 7.32
9. Reliance Liquid Fund Cash Plan - Daily Dividend Reinvestment 21330367.02 2376.45
10. TATA Liquidity Management Fund - Daily Dividend
Reinvestment Option ( Units of Rs.1000 each) 49897.07 500.10
11. DWS Insta Cash Plus Fund - Institutional Plan -
Daily Dividend Option 15044297.13 1507.36
12. HSBC Cash Fund Institutional Plus -
Daily Dividend Reinvestment Option 39992661.20 4001.51
13. ICICI Prudential Institutional Liquid Plan - Super Institutional -
Daily Dividend Reinvestment Option 243660766.25 24366.11
14. Reliance Liquidity Fund - Daily Dividend Reinvestment Option 97599729.43 9763.00
15. ICICI Prudential Sweep Cash Option - Daily Dividend 95727753.94 9572.78
16. Templeton India TMA Super - Institutional Plan - 803122.38 8033.23
Daily Dividend Reinvestment Option (Units of Rs.1000 each)
17. UTI Money Market Fund - Daily Dividend Reinvestment 6250051.09 1101.45
18. HSBC Liquid Plus - Inst.Plus - Daily Dividend 73663876.14 7375.67
19. Grindlays Floating Rate Fund - LT - Inst Plan B - Daily Dividend 66189133.21 6621.20
20. TATA Floater Fund - Daily Dividend 69745866.54 6999.42
21. Birla Sun Life Cash Manager - IP - Daily Dividend - Reinvestment 39998427.03 4000.64
22. UTI - Liquid Plus Fund Institutional Plan - Daily Dividend Option 813839.73 8139.53
(Units of Rs.1000 each)
23. HDFC Liquid Fund Premium Plan - Dividend - Daily Reinvest 53110771.87 6511.27
24. Principal Floating Rate Fund FMP Instl.Option -
Dividend Reinvestment Daily 44627005.82 4468.19
25. Lotus India FMP 3 Months Ser - IX Div. Reinvestment Option 5095009.13 509.50
26. Templeton India Treasury Management Account Super
Institutional Plan - Daily Dividend Reinvestment 668326.02 6684.93
(Units of Rs.1000 each)
27. ICICI Prudential Floating Rate Plan D - Daily Dividend 24899199.22 2490.34
28. DBS Chola Freedom Income STP Inst. - Daily Dividend
Reinvestment Plan 95125119.06 9512.68
39
Nos. Acquisition
Cost
(Rs. in lacs)
29. Birla Sun Life Liquid Plus - Instl.- Daily Dividend - Reinvestment 72201887.27 7224.59
30. Kotak Flexi Debt Scheme - Daily Dividend 32872116.92 3297.43
31. HDFC Cash Management Fund - Saving Plus Plan -
Wholesale - Daily Dividend 12835625.33 1287.61
32. HDFC Floating Rate Income Fund - Short Term Plan -
Retail Option - Dividend Reinvestment Daily 55342092.02 5578.98
33. ICICI Prudential - Flexible Income Plan Dividend - Daily 18573298.11 1963.85
34. Lotus India FMP 3 Months Series - XV Dividend 5182108.22 518.21
35. ING Liquid Plus Fund - Institutional Daily Dividend 10708569.23 1071.21
36. ABN AMRO Flexible Short Term Plan Ser B Qly.Div.Red. 5178462.11 517.85
37. Kotak FMP 3 Months Ser.25 Dividend Reinvestment 5089129.15 508.91
38. ABN AMRO Money Plus Institutional Plan Daily Dividend 45363566.97 4536.40
39. JPMORGAN India Liquid Plus Fund - Dividend Plan - Reinvest 56822088.66 5686.82
40. AIG India Treasury Plus Fund Institutional Daily Dividend 10089733.03 1008.98
41. DWS Money Plus Fund - Institutional Plan - Daily 16087260.58 1610.05
42. HDFC Floating Rate Income Fund Short Term Plan -
Wholesale Option Dividend Reinvestment-Daily 76787152.40 7740.84
43. UTI Liquid Cash Plan Institutional - Daily Income Option -
Reinvestment (Units of Rs.1000 each) 537590.56 5480.44
44. Fidelity Liquid Plus Super Institutional - Daily Dividend 15023843.08 1502.38
45. ICICI Prudential Interval Fund II Quarterly Interval Plan C -
Retail Dividend - Reinvest 5094325.72 509.43
46. UTI Fixed Income Interval Fund - Quarterly Plan Series - III -
Institutional Dividend 5091421.92 509.21
47. Reliance Liquidity Fund - Daily Dividend Reinvestment Option 18225817.45 1823.15
48. Templeton Floating Rate Income Fund Long Term Plan Super
Institutional Option - Daily Dividend Reinvestment 65901781.10 6597.27
49. Reliance Liquid Plus Fund - Institutional Option -
Daily Dividend Plan (Units of Rs.1000 each) 257172.51 2574.53
50. Principal Cash Management Fund Liquid Option Instl.Prem.
Plan - Dividend Reinvestment Daily 19132008.66 1913.33
51. Lotus India Liquid Fund - Super Institutional Plus Daily Dividend 20872186.90 2087.34
52. Lotus India Liquid Plus Fund - Institutional Daily Dividend 20995910.29 2102.89
53. Birla Income Plus - Quarterly Dividend - Reinvestment 23692461.56 2531.21
54. DSP Merrill Lynch Cash Plus - Institutional -
Daily Dividend ( Units of Rs.1000 each) 1009996.76 10100.98
55. ICICI Prudential Interval Fund Monthly Plan II -
Retail Dividend - Reinvest Dividend 14945525.85 1505.27
56. ICICI Prudential Institutional Income
Plan Dividend Quarterly - Reinvest Dividend 4643522.45 500.08
57. JPMORGAN India Liquid Fund - Dividend Plan - Reinvestment 279828.02 28.00
58. Birla Dynamic Bond Fund - Retail - Quarterly Dividend 24161904.73 2509.39
59. DBS Chola Liquid Inst. Daily Dividend Reinvestment Plan 4227468.73 424.09
60. JM High Liquidity Fund - Super Institutional Plan - Daily Dividend 8307705.11 832.14
61. TATA Treasury Manager SHIP Daily Dividend (Units of Rs.1000 each) 149628.34 1500.77
62. SBI - SHF - Liquid Plus - Institutional Plan - Daily Dividend 16991504.25 1700.00
63. DSP Merrill Lynch Liquid Plus Institutional Plan -
Daily Dividend ( Units of Rs.1000 each) 360297.94 3604.49
64. SBI Premier Liquid Fund - Super Institutional - Daily Dividend 20005849.67 2007.09
65. LICMF Liquid Fund - Dividend Plan 44697682.49 4907.85
40
Nos. Acquisition
Cost
(Rs. in lacs)
C. Equity Shares (Quoted) (Shares of Rs.10 each, unless otherwise specified):
1. Aban Offshore Limited (Equity Share of Rs. 2 each) 1500 46.58
2. Aditya Birla Nuvo Limited. 3500 68.48
3. Bata India Limited 20000 27.27
4. Bilcare India Limited 5000 47.01
5. Bharat Heavy Electricals Limited. 5700 109.45
6. Biocon Limited (Equity Share of Rs. 5 each) 6222 27.02
7. Century Textile & Industries Limited 5000 36.16
8. Colgate Palmolive India Limited (Equity Share of Re.1 each) 19500 64.47
9. CESC Limited 29200 123.23
10. Dish TV India Limited (Equity Share of Re.1 each) 4025 1.69
11. Deepak Fertilizer & Petrochemicals Corporation Limited 45000 50.85
12. DLF Limited (Equity Share of Rs. 2 each) 5500 45.52
13. Educomp Solutions Limited 4000 93.06
14. Edelweiss Capital Limited (Equity Share of Rs. 5 each) 5500 46.93
15. Glaxo Smithkline Pharma Limited 2000 26.07
16. Gokaldas Exports Limited (Equity Share of Rs. 5 each) 2136 4.86
17. Great Eastern Shipping Company Limited 204000 703.51
18. Great Offshore Limited 6000 42.32
19. HDFC Bank Limited 1600 22.96
20. HCL Technologies Limited 10000 28.42
21. Housing Development & Infrastructure Limited 135461 677.31
22. I - Flex Solutions Limited 1000 24.69
23. ICSA India Limited 10000 33.32
24. Indian Petrochemicals Corporation Limited 12000 47.99
25. ITC Limited (Equity Share of Re. 1 each) 10000 18.87
26. India Cements Limited 10000 19.56
27. IVRCL Infrastructures & Projects Limited (Equity Share of Rs. 2 each) 10000 38.19
28. Infomedia India Limited 9500 25.67
29. Jaiprakash Associates Limited (Equity Share of Rs. 2 each) 13000 99.35
30. Jet Airways (India) Limited 3000 24.84
31. Mahindra Lifespace Developers Limited 10000 55.53
32. Mundra Port and Special Economic Zone Limited 324 1.43
33. Oil & Natural Gas Co. Limited 500 5.95
34. Onmobile Global Limited 5111 22.49
35. Punj Lloyd Limited (Equity Share of Rs. 2 each) 1000 3.59
36. Ranbaxy Laboratories Limited (Equity Share of Rs. 5 each) 13000 51.04
37. Reliance Energy Ltd 9000 65.71
38. Reliance Industries Limited 3000 60.93
39. Reliance Petroleum Limited 50000 48.70
40. Remi Metals Gujarat Limited (Equity Share of Rs. 6 each) 200000 51.60
41. Sun Pharma Advanced Research Company Limited (Equity Share of Re.1 each) 50000 33.33
42. Suzlon Energy Limited (Equity Share of Rs. 2 each) 7000 39.69
43. Triveni Engg. & Industries Limited (Equity Share of Rs.1 each) 18000 25.58
44. Tata Steel Limited 3000 27.54
45. Tata Power Company Limited 15000 123.83
46. Ultratech Cement Limited 2500 23.95
47. Zee Entertainment Enterprises Limited (Equity Share of Re.1 each) 14000 32.16
41
(a) Inventories:
(As verified, valued and certified by the Management) :
(i) Loose Tools 85.70 84.75
(ii) Stores and Spare Parts 1769.40 1561.50
(iii) Stock-in-Trade:
Raw Materials 3150.22 4475.97
Goods-in-Process 11896.62 8673.34
Finished Goods 9549.89 9007.19
(iv) Merchanting Goods 4038.42 2714.92
(v) Goods-in-Transit 2483.93 1848.69
32974.18 28366.36
(b) Sundry Debtors :
(Refer Note 3 and 4 )
(i) Debts outstanding for a period exceeding six months
Secured (considered good) 192.99 144.80
Unsecured :
Considered good (including Rs. 5.52 lacs
due from subsidiaries; Previous year Rs 6.46 lacs) 1761.81 1754.96
1954.80 1899.76
Considered doubtful 390.70 386.68
Less: Provision (390.70) (386.68)
— —
(ii) Other Debts :
Secured (considered good) 2785.97 2684.76
Unsecured :
Considered good (including Rs.1210.42 lacs
due from subsidiaries; Previous year Rs.1499.20 lacs) 24247.79 22292.55
27033.76 24977.31
28988.56 26877.07
(c) Cash and Bank Balances:
(i) Cash on hand (including cheques on hand
Rs. 241.73 lacs; Previous year Rs. 658.97 lacs) 289.02 709.22
(ii) Balances with Scheduled Banks:
In Current Accounts (including remittances-in-transit
Rs. 0.16 lac; Previous year Rs.0.16 lac) 1798.15 1745.14
In Deposit Account [includes Rs. 0.63 lac deposit
receipt endorsed in favour of Government authorities
as security (Previous year Rs.0.61 lac)] 92.92 92.20
(iii) Balances with Non-Scheduled Banks:
In Current Accounts:
The Municipal Co-operative Bank Limited
[Maximum balance during the year Rs.16.34 lacs
(Previous year Rs.8.82 lacs)] 0.85 3.47
C/F. 2180.94 61962.74 2550.03 55243.43
42
43
44
45
46
(i) Subsidiaries:
Raymond Apparel Limited – – – –
(–) (2850.00) (–) (–)
Colorplus Fashions Limited 300.00 300.00 – –
(–) (–) (–) (–)
Pashmina Holdings Limited 300.00 300.00 – –
(300.00) (300.00) (–) (–)
Hindustan Files Limited – – – –
(–) (278.33) (–) (–)
Everblue Apparel Limited 1870.75 2173.17 – –
(1802.17) (1802.17) (–) (–)
Silver Spark Apparel Limited 1556.96 2331.96 – –
(2016.96) (2652.96) (–) (–)
Celebrations Apparel Limited 1006.08 1006.08 – –
(606.08) (606.08) (–) (–)
JK Talabot Limited 575.62 726.62 – –
(637.60) (637.60) (–) (–)
Ring Plus Aqua Limited 15.03 15.03 – –
(–) (–) (–) (–)
(ii) Associate Companies:
J.K. Investo Trade (India) Limited [Refer Note 5b] 30.00 30.00 16,58,923 16,58,923
(30.00) (30.00) (13,92,662) (13,92,662)
P T Jaykay Files Indonesia 56.38 56.38 – –
(–) (20.59) (–) (–)
(iii) Joint Ventures:
Raymond Fedora Private Limited 1123.64 1123.64 – –
(653.64) (800.00) (–) (–)
Raymond UCO Denim Private Limited 2942.50 2942.50 – –
(Repayable on or before 6th August, 2013) (2942.50) (2942.50) (–) (–)
(Figures in bracket relate to previous year)
47
48
7. Pursuant to the approval of members by way of special resolution passed at the Extraordinary General Meeting of the Company held on
4th December, 2007, the Company has allotted 61,38,085 warrants to one of the promoters of the Company, namely, J.K. Investors (Bombay) Limited
on 12th December, 2007. Each warrant carries option/entitlement to subscribe to 1 equity share of Rs.10 each at a premium of Rs.330. In terms of the
special resolution, the said warrants have been issued upon payment of 10% of the amount. The balance 90% of the amount is payable within
18 months. The amounts so received, pending utilisation, have been invested in Mutual Funds.
8. A. Managerial remuneration under Section 198 of the Companies Act, 1956, paid or payable during the financial year, to the Directors, as under:
2007-2008 2006-2007
(Rs. in lacs) (Rs. in lacs)
500.96 699.52
Approximate money value of perquisites and benefits 36.75 39.77
537.71 739.29
* Includes Rs.10.00 lacs paid to the non-executive directors for the accounting year 2005-06.
The employee-wise break-up of liability on account of Retirement Schemes based on actuarial valuation is not ascertainable. The amounts relatable
to the Directors is, therefore, disclosed in the year of payment.
49
1027.65 967.62
9197.31 24790.90
Less: Profit on sale of Investments (net) 4692.16 3645.91
Exceptional Items (net) — 8124.64
Provision for Wealth Tax 62.00 28.00
4754.16 11798.55
50
(Rs. in lacs)
As at 31-3-2008 As at 31-3-2007 As at 31-3-2006
18. Deferred Tax :
Deferred Tax Liability on account of :
Depreciation 8177.38 7479.17 8364.14
51
52
53
54
55
PGS 46 TO 61.pmd
2007-2008 2006-2007 As at 1-4-2007 As at 1-4-2006 As at 31-3-2008 As at 31-3-2007 2007-2008 2006-2007 2007-2008 2006-2007
Quantity Quantity Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Quantity
Fabrics Lac Mtrs. 318.71 301.47 38.22 7448.56 26.32 5133.99 36.10 7499.13 38.22 7448.56 319.45 96650.01 287.97 90784.22 1.38 1.60
Rugs, Blankets & Shawls Lac Pcs./Mtrs. 2.17 0.20 0.15 81.85 0.15 105.92 1.06 653.47 0.15 81.85 1.87 1331.99 0.30 288.47 (0.61) (0.10)
Furnishing Fabric Lac Mtrs. 8.14 7.22 0.28 51.71 0.26 42.66 0.66 125.85 0.28 51.71 8.24 1737.85 7.10 1514.12 (0.48) 0.10
Denim Fabric Lac Mtrs. — 106.84 — — 18.64 1730.49 — — — — — — 102.13 11184.60 — 23.35*
56
Garments Lac Pcs. 3.79 3.24 1.45 1407.57 0.98 990.19 1.66 1834.86 1.45 1407.57 4.13 5078.55 3.17 3905.96 (0.55) (0.40)
Shirtings Lac Mtrs. 7.56 5.33 1.17 136.94 0.97 89.34 2.61 436.63 1.17 136.94 5.87 1322.34 5.03 729.78 0.25 0.10
Merchanting Fabrics Lac Mtrs. 4.71 1.69 0.78 305.98 0.16 37.73 1.74 1301.42 0.78 305.98 3.26 2050.34 1.29 539.85 0.49 (0.22)
Files and Rasps Lac Nos. 508.66 479.60 37.90 922.98 46.56 1205.24 51.43 1104.25 37.90 922.98 494.55 11946.39 488.25 12109.13 0.58 0.01
H.S.S. Twist Drills Lac Nos. 118.78 111.41 15.27 422.29 8.59 172.17 13.09 336.66 15.27 422.29 120.68 2389.33 104.94 2023.11 0.28 (0.21)
Bars & Rods $ M.T. 6456.50 5714.90 150.22 66.98 159.14 73.37 127.16 57.02 150.22 66.98 793.16 347.01 611.19 266.37 — 16.53
56
* Sundries include 19.49 lac mtrs. of denim fabric transferred on divestment of denim business.
2007-2008 2006-07
Items Unit Quantity Value Quantity Value
5/26/2008, 3:20 PM
23 Disclosures pursuant to Accounting Standard-15 “Employee Benefits”
a. Effective 1st April 2007 the Company has adopted Accounting Standard 15 for Employee Benefits. Consequent to the adoption an
amount of Rs. 1234.43 lacs (Net of deferred tax Rs.635.64 lacs) has been adjusted against General Reserve as at 1st April 2007, in
accordance with the transitional provisions in the standard.
(Rs. in lacs)
Benefit Deferred Tax Adjusted against Reserve
Leave Entitlement 1136.88 386.43 750.45
Pension 733.19 249.21 483.98
Total 1870.07 635.64 1234.43
b. The Company has recognised Rs.1394.04 Lacs in the Profit and Loss Account for the year ended 31st March 2008 under Defined
Contribution Plans.
c. Details of Defined Benefit Plan
(Rs. In Lacs)
Gratuity Pension
1 Components of Employer Expense
(a) Current Service Cost 284.44 33.16
(b) Interest Cost 467.86 62.25
(c) Expected Return on Plan Assets (426.66) –
(d) Actuarial (Gain)/Loss 9.09 (30.51)
(e) Total expense/(gain) recognised in the Profit & Loss Account 334.73 64.90
2 Net Asset/(Liability) recognised in Balance Sheet as at 31st March, 2008
(a) Present Value of Obligation as at 31st March, 2008 6005.31 792.43
(b) Fair Value of Plan Assets as at 31st March, 2008 (6005.31) N.A.
(c) (Asset)/Liability recognised in the Balance Sheet – 792.43
3 Change in Defined Benefit Obligation (DBO) during the year ended as on 31st March, 2008
(a) Present Value of Obligation as at 31st March, 2007 5695.12 767.59
(b) Current Service Cost 284.44 33.16
(c) Interest Cost 467.86 62.25
(d) Actuarial (Gain)/Loss (78.99) (24.17)
(e) Benefits Paid (363.12) (46.40)
(f) Present Value of Obligation as at 31st March, 2008 6005.31 792.43
4 Changes in the Fair Value of Plan Assets
(a) Present Value of Plan Assets as at 31st March, 2007 5695.12
(b) Expected Return on Plan Assets 426.66
(c) Actuarial Gain/(Loss) (88.08)
N.A.
(d) Actual Company Contribution 334.73
(e) Benefits Paid (363.12)
(f) Fair Value of Plan Assets as at 31st March, 2008 6005.31
5 Actuarial Assumptions
(a) Discount Rate (per annum) 8.0% 8.0%
(b) Expected Rate of Return on Assets (per annum) 7.5% N.A.
(c) Salary Escalation Rate* 8.0% 8.0%
* takes into account the inflation, seniority, promotions and other relevant factors
6 Percentage of each Category of Plan Assets to total Fair Value of:
(a) Government Securities 54%
(b) Corporate Bonds 39% N.A.
(c) Others 7%
57
58
Signatures to Schedules 1 to 16
As per our Report of even date
59
60
This information is given pursuant to the recognition granted to the Company’s Research & Development Laboratory at Jekegram, Thane by the
Department of Scientific & Industrial Research, Ministry of Science & Technology, Government of India, vide their letter No. TU/IV-RD/2505/2005
dated 24th May, 2005, which is valid upto 31st March, 2008.
61
62
63
APPLICATION OF FUNDS:
Fixed Assets: 4
Gross Block 171603.04 76119.05 247722.09 155687.07 72602.14 228289.21
Less: Depreciation 74855.03 28908.15 103763.18 64930.58 21629.73 86560.31
Net Block 96748.01 47210.90 143958.91 90756.49 50972.41 141728.90
Less: Unrealised Profit — 4083.39 4083.39 — 4575.43 4575.43
Capital work-in-progress 3085.73 594.43 3680.16 10370.61 738.92 11109.53
99833.74 43721.94 143555.68 101127.10 47135.90 148263.00
Investments 5 63690.14 13.59 63703.73 56707.08 1373.22 58080.30
Current Assets, Loans and Advances: 6
Inventories 53505.53 13143.19 66648.72 44154.26 12966.73 57120.99
Sundry Debtors 37821.63 8591.89 46413.52 33530.63 7717.66 41248.29
Cash and Bank Balances 4069.67 1723.29 5792.96 4741.14 934.60 5675.74
Other Current Assets 6592.50 1743.35 8335.85 3617.35 1587.62 5204.97
Loans and Advances 26215.44 2273.21 28488.65 20504.17 2126.77 22630.94
128204.77 27474.93 155679.70 106547.55 25333.38 131880.93
Less:
Current Liabilities and Provisions: 7
Current Liabilities 39044.60 9036.50 48081.10 37228.92 8040.36 45269.28
Provisions 8286.65 1251.94 9538.59 8635.51 1523.99 10159.50
47331.25 10288.44 57619.69 45864.43 9564.35 55428.78
Net Current Assets 80873.52 17186.49 98060.01 60683.12 15769.03 76452.15
TOTAL 244397.40 60922.02 305319.42 218517.30 64278.15 282795.45
64
65
66
67
Total Loan Funds – Per Balance Sheet 111339.60 42148.80 153488.40 94141.41 37877.46 132018.87
68
B. Non-Trade Investments
Shares (Unquoted) 889.24 — 889.24 829.76 — 829.76
Less: Provision for diminution in value of Investments (337.80) — (337.80) (302.79) — (302.79)
C. Non-Trade Investments
Shares (Quoted) 2740.82 — 2740.82 2343.27 — 2343.27
Bonds (Quoted) 2974.96 — 2974.96 2974.96 — 2974.96
D. Non-Trade Investments
Unquoted Debentures 2892.19 — 2892.19 42.19 — 42.19
Less: Provision for diminution in vale of Investments — — — — — —
Total – Long Term Investments 30614.58 0.10 30614.68 33571.57 366.48 33938.05
36.57 — 36.57 — — —
Book Value
Aggregate of Quoted Investments 10290.19 — 10290.19 11134.79 — 11134.79
Aggregate of Unquoted Investments 53363.38 13.59 53376.97 45572.29 1373.22 46945.51
Market Value
Aggregate of Quoted Investments 15025.36 — 15025.36 15011.88 — 15011.88
69
70
71
Per Profit and Loss Account 35840.62 13775.64 49616.26 34570.71 8603.94 43174.65
Per Profit and Loss Account 33081.17 8574.02 41655.19 30532.99 6161.91 36694.90
Per Profit and Loss Account 49413.57 5675.80 55089.37 38258.13 3220.26 41478.39
Per Profit and Loss Account 7199.99 2490.12 9690.11 5353.64 1560.92 6914.56
72
73
Deferred Tax (Net) 6436.45 6670.09 7020.53 Nature of transactions Referred in Referred in Referred in
1(a) above 1(b) above 1(c) above
* As a matter of prudence, unabsorbed depreciation and losses have been Current Previous Current Previous Current Previous
recognised only to the extent there is Deferred Tax Liability. year year year year year year
8. Variation between the Accounting Policies followed by various entities within the group: Purchases:
Goods and Materials 1582.38 544.80 1188.50 690.84 — —
(a) The foreign subsidiaries, listed in Note 1 above, have not accounted for deferred Fixed Assets 2.47 — — 7.91 — —
taxation. Sales:
(b) Colorplus Fashions Limited (CFL) was hitherto providing depreciation on all assets on the Goods and Materials 6039.42 359.91 405.06 95.20 — —
written down value method, which was in variation to the methods adopted by the Fixed Assets 12.11 24.79 4.38 0.90 — —
Sale of Business — 33075.25 — — — —
Group. During the year, CFL has re-aligned it’s policy in line with the Group and
Expenses:
difference has been charged to current year’s depreciation.
Rent and other service charges 557.38 305.84 888.49 761.84 3.00 3.00
(c) Accounting for improvements to Leasehold Premises by Raymond Limited is in variation Job Work Charges 545.88 — — — — —
to the methods adopted by other entities in the Group. Agency Commission — — 501.23 534.27 — —
Remuneration 4.90 — 43.88 — 517.70 707.50
The impact of the above, in the opinion of the management, would not be significant. Interest paid — — 20.83 20.74 — —
9. Effective 1st April 2007 the Company has adopted Accounting Standard 15 - ‘Employee Professional Fees — — — — 114.76 58.90
Directors’ Fees — –- — — 1.10 1.15
Benefits. Consequent to the adoption an amount of Rs. 1225.38 lacs (net of taxes) has
Other reimbursement 1740.15 1011.47 10.06 20.58 — —
been adjusted against the General Reserves as at 1st April 2007, in accordance with the
Income:
transitional provisions in the Standard. Rent and other service charges 29.93 352.85 293.68 188.46 — 1.80
10. The Company has an aggregate investment of Rs.26350.19 lacs in the Equity and Interest received 427.02 198.12 2.70 2.70 — —
Preference Capital (represented by written down value of goodwill on consolidation Other Receipts:
Deputation of staff 192.56 25.32 159.63 90.00 — —
Rs.8622.08 lacs) and also in Debentures of Raymond UCO Denim Private Limited (RUDPL),
Other reimbursement 145.42 — 65.91 39.60 — —
a Joint Venture Company. Further, the Company has advanced a loan of Rs.2942.50 lacs Finance:
on which interest of Rs.188.60 lacs is also over due. The Company along with the Joint Loans and Advances given 470.00 5531.62 — — — —
Venture Partner has undertaken to additionally fund RUDPL in case it fails to meet certain Investments 2903.00 23741.19 — — — —
covenants of the Facility cum Hypothecation Agreement entered into with a Bank. During Outstandings:
the year, the net worth of three of the overseas subsidiaries of RUDPL has eroded/ Payable 1074.55 385.83 136.05 48.17 7.96 —
substantially eroded due to operational losses. The Company along with the Joint Venture Receivable 1973.85 904.03 260.80 40.15 — —
partner is in the process of preparing an action plan for revival of these subsidiaries. Agency Deposits received 1.00 1.00 211.02 207.40 — —
Loans and Advances given 4516.47 3596.14 30.00 30.00 — —
Considering the steps being taken and the fact that the holding in RUDPL is part of the
Property Deposits paid 1.00 1.00 2935.85 2935.85 — —
Company’s long term strategy to be present in the global Denim Business, no provision for
74
Segment Result 15394.24 17720.73 4272.92 3586.56 1558.28 1668.30 (6068.09) (1210.02) 794.55 1241.73 (1820.64) (2547.41) (785.23) 355.83 13346.03 20815.72
Add/(Less):
Pre-acquisition (Loss) — — — (173.24) — — — — — — — — — — — (173.24)
Minority Interest — — — — (0.89) 27.26 — — (81.73) (110.25) 0.70 (1.74) — — (81.92) (84.73)
15394.24 17720.73 4272.92 3413.32 1557.39 1695.56 (6068.09) (1210.02) 712.82 1131.48 (1819.94) (2549.15) (785.23) 355.83 13264.11 20557.75
Unallocated income/(expenses) (Net) (4146.39) (220.40)
Finance charges (9690.11) (6914.56)
Interest Income 3672.28 1897.54
Exceptional Items 732.00 3871.93
Excess/(Short) provision for tax
in respect of earlier years 735.75 15.83
Provision for Taxes (2874.07) (5490.10)
Share of Profit in Associate
Companies 461.79 280.72
Net Profit 2155.36 13998.71
Other Information:
Segment Assets 129685.01 118642.37 63904.57 51037.91 11026.19 11211.65 54586.06 62787.59 7687.06 6965.79 11269.13 11329.91 (6149.08) (1517.82) 272008.94 260457.40
Unallocated assets 90930.17 77766.83
Total Assets 362939.11 338224.23
Segment Liabilities 25728.23 24254.25 11273.46 7951.79 3868.33 3679.88 7039.20 7576.77 1740.14 1556.13 405.31 318.16 (1561.63) (1528.15) 48493.04 43808.83
Minority Interest — — — — 53.19 52.34 — — 566.23 522.82 31.76 29.44 — — 651.18 604.60
Unallocated Liabilities 169051.50 150308.91
Total Liabilities 218195.72 194722.34
Capital Expenditure
Segment capital expenditure 4798.29 31148.45 5437.29 5493.35 174.30 526.01 2833.73 13218.32 696.88 824.51 334.88 9680.85 — — 14275.37 60891.49
Unallocated capital expenditure 735.32 822.09
Total capital expenditure 15010.69 61713.58
Depreciation and Amortisation:
Segment depreciation and
amortisation 6984.09 4735.01 2299.44 1684.92 381.15 389.09 4954.90 4565.48 425.47 406.46 659.16 509.71 — — 15704.21 12290.67
Unallocated depreciation
and amortisation 1181.89 283.30
Total depreciation and amortisation 16886.10 12573.97
Significant Non Cash Expenditure:
Segment Significant Non Cash
Expenditure 7.81 — 12.58 — 17.47 15.00 142.67 — 5.36 — — — — — 185.89 15.00
Unallocated non cash expenditure 43.72 140.28
Total Significant Non Cash 229.61 155.28
Expenditure
B. GEOGRAPHICAL SEGMENT
(Rs. in lacs)
C. OTHER DISCLOSURES
1. Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17) taking into account the organisation structure as well as the differential risks and returns
of these segments.
2. The Company has disclosed Business Segment as the primary segment.
3. Types of products and services in each business segment:
Business Segment Types of Products and services
a) Textiles - Fabric, rugs, blankets, shawls and furnishing fabric
b) Denim - Denim fabric and cotton yarn
c) Garments - Readymade garments and designerwear
d) Files and Tools - Engineers’ files and rasps, H.S.S. twist drills and bars and rods (HRS)
e) Auto Components - Starter Gear, Shaft Bearings and Sheet metal components
f) Others - Aviation etc.
4. Inter Segment revenues are recognised at sales price.
5. The Segment Revenues, Results, Assets and Liabilities include the respective amounts identifiable to each of the segment and amounts allocated on a reasonable basis.
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DETAILS OF BALANCE SHEET AS AT 31ST MARCH, 2008 AND INCOME AND EXPENDITURE FOR THE YEAR
ENDED 31ST MARCH, 2008 OF SUBSIDIARY COMPANIES
Indian Subsidiaries (Rs. in lacs) Foreign Subsidiaries (Rs. in lacs)
Raymond Pashmina Everblue Hindustan Colorplus Silver Celebrations Scissors Ring Plus JK Talabot J.K. (England) Jaykayorg Regency Raymond R&A
Particulars Apparel Holdings Apparel Files Fashions Spark Apparel Engineering Aqua Limited Limited AG Texteis Europe Logistics
Limited Limited Limited Limited Limited Apparel Limited Products Limited (United (Switzerland) Portuguesa, S.R.L. Inc. (United
Limited Limited Kingdom) Limitada States of
(Portugal) America)
1. Share Capital 3630.00 74.00 1500.00 377.01 498.00 1700.00 271.00 2738.05 760.66 805.44 0.80 20.10 768.59 75.08 0.12
2. Reserves and
Surplus 8113.67 788.27 (1622.29) 99.91 8787.99 (390.24) (254.30) (26.91) 4063.98 (273.44) 260.17 2601.46 672.83 4.36 31.45
3. Miscellaneous
Expenditure to
the extent
not written off — — — — — — — — — — — — — — —
4. Total Assets 32579.09 1184.64 4759.11 1234.71 14639.59 8457.19 2580.98 2711.42 7609.43 2210.19 267.69 2688.76 3766.63 228.52 251.01
5. Total Liabilities @ 20835.42 322.36 4881.40 757.78 5353.60 7147.42 2564.27 2.81 2315.44 1678.18 6.73 67.21 2325.21 149.09 219.44
6. Details of Investments :
- Government
Securities 0.01 — — — — — — — — — — — — — —
- Shares (excluding
subsidiaries) 8.05 13.81 — — — — — — 8.20 — — 487.70 — — —
- Mutual Funds — 6.94 — — — — — — 549.52 — — — -— — —
7. Turnover and
Other Income 35067.15 27.87 577.40 3407.05 14888.42 9205.62 901.06 — 8228.90 1260.00 302.15 569.58 6267.29 360.24 864.32
8. Profit Before
Taxation 1310.38 (0.30) 153.03 195.27 1243.80 815.12 (8.87) (0.36) 1119.04 9.58 28.16 (105.38) (163.53) 16.31 5.48
9. Provision for
Taxation * 526.05 16.15 4.44 (20.03) 467.67 86.31 1.03 — 392.48 0.89 5.23 (0.32) 13.06 16.62 1.14
10. Profit After
Taxation 784.33 (16.45) 148.59 215.30 776.13 728.81 (9.90) (0.36) 726.56 8.69 22.93 (105.06) (176.59) (0.31) 4.34
11. Proposed
Dividend — — — — 0.04 — — — — — — — — — —
@ Includes deferred tax liability (net); * Net of excess/short provision for tax in respect of earlier years.
Note - In respect of foreign subsidiaries:
a) Item Nos. 1 to 6 and 11 are translated at exchange rates as on 31st March, 2008 as follows: Pound Sterling = Rs.79.53, Swiss Francs = Rs.40.19, Euro = Rs.63.09 and US Dollars = Rs. 39.97;
b) Item Nos. 7 to 10 are translated at annual average exchange rates as follows: Pound Sterling = Rs.80.76, Swiss Francs = Rs.34.89, Euro = Rs.57.21 and US Dollars = Rs. 40.21.
The above details have been annexed in terms of Letter No.47/80/2008-CL-III dated March 12, 2008 issued by Government of India, Ministry of Corporate Affairs under Section 212(8) of the Companies Act, 1956.
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I. REGISTRATION DETAILS
V. GENERIC NAMES OF PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY (AS PER MONETARY TERMS)
51121900, 51123000, 55151300 & 55151100 Woollen, Polyester/Wool Blended and Polyester Viscose Blended Fabrics
82031000 & 82075000 Files, Rasps, similar tools and H.S.S. Drills
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PROXY FORM
rd
83 ANNUAL GENERAL MEETING ON WEDNESDAY, JUNE 18, 2008 AT 11.00 A.M.
at Plot No. 156/H. No. 2, Village Zadgaon, Ratnagiri-415 612 (Maharashtra)
Affix
Revenue
Stamp
Re. 1/-
Signed this ..................... day of ........................... 2008 Signature across Revenue Stamp
Note: The proxy, in order to be effective, should be duly stamped, completed and signed must be deposited at the Registered office of the Company
at 156/H.No.2, Village Zadgaon, Ratnagiri - 415612 (Maharashtra), not less than 48 hours before the time of the meeting. The proxy need not
be a member of the Company.