COMPANY PROFILE
Raymond's business is divided into three major segments -- textiles, files & tools and
air charter services. Textiles division forms the core business of the company with a
contribution of 77 per cent to total sales during 2006--07. The product range under
this segment includes wool & wool-blended fabrics, worsted suiting, wool blended
and premium polyester viscose worsted suiting, blankets and shawls and other
specialty fibres like Cashmere, Angora, Alpaca, Pure Silk, Linen, etc. The files &
tools division is engaged in the manufacture of engineers' files and rasps, drills, tools,
bars and rods. In 1996 Raymond launched Million Air, its aviation division to provide
air charter services aimed mainly at the corporate travel segment.
The denim business of Raymond was combined with that of UCO NV, Belgium to
form a 50:50 joint venture `Raymond UCO Denim Pvt. Ltd.', in August 2006. The
joint venture will create a global presence for the denim business and help service
customers in three major markets of the world -- USA, Europe and Asia. The joint
venture has a combined denim fabric capacity of 80 million metres per annum.
Over the years, the company has entered into other diverse businesses spanning
designer-wear, furnishings, woollen outware, engineering, auto components,
cosmetics & toiletries and prophylactics through various subsidiaries and joint
ventures. Raymond Apparel Ltd. (100 per cent subsidiary of the company) is amongst
the largest apparel companies in the country with brands like Manzoni, Park Avenue,
ColorPlus, Parx, Be:, Zapp! and Notting Hill. The Raymond group also has an
expansive retail presence established through the exclusive chain of `The Raymond
Shop' (TRS) and stand--alone brand stores. Currently, the company has more than 430
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APGCMS, Rajampet
Raymonds Ltd.
stores in India, Middle East and South Asia spread across 170 cities with
approximately 1,000,000 square feet of retail space. As a part of its aggressive retail
expansion strategy, Raymond plans to roll out 950 TRS and exclusive brand stores
across the country with over two million square feet of retail space by 2010
The company ventured into the engineering business with the establishment of J.K.
Files & tools in 1949. It manufactures files, cutting tools, hand tools and agri tools
and commands a global market share of over 30 per cent in the steel files business.
Raymond forayed into automotive components by acquiring controlling stake in `Ring
Plus Aqua Ltd.'. It manufactures flywheel starter gears and integral shaft bearings for
water pumps. The company also has presence in personal care and grooming products
for men through the brands park avenue and premium.
Basic information
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APGCMS, Rajampet
Raymonds Ltd.
Beta : 0.957
Bankers
Bank Of India
Bank Of Maharashtra
Citibank N A.
H D F C Bank Ltd.
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APGCMS, Rajampet
Raymonds Ltd.
BOARD OF DIRECTORS
B K Kedia Director
B V Bhargava Director
U V Rao Director
I D Agarwal Director
Contact information
4
APGCMS, Rajampet
Raymonds Ltd.
Registered office
Address
Street : Plot No. 156/H. No.2, Village Zadgaon
City : Ratnagiri
Pincode : 415612
State : Maharashtra
Email address : webmaster@raymondindia.com
Website : www. raymondindia.com
Head office
Address
Street : 1st Floor,New Hind House, Narottam Morarjee Marg,Fort
City : Mumbai
Pincode : 400001
State : Maharashtra
STUDY OBJECTIVES:
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APGCMS, Rajampet
Raymonds Ltd.
Executive Summary
Mar Mar Mar Mar Mar Mar
Raymond Ltd. 2003 2004 2005 2006 2007 2008
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 1123.49 1268.68 1272.45 1467.88 1527.76 1543.36
Sales 1035.27 1112.35 1181.48 1375.47 1342.84 1380.42
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Raymonds Ltd.
Income from financial services 66.99 125.19 68.65 66.85 75.18 124.9
Growth (%)
2.735053 12.92312 0.297159 4.079352
Total income 7 3 3 15.35856 5 1.0211028
10.34092 16.85599 0.109882
Total expenses -0.520222 8 2.337255 1 1 11.359579
2.480516 50.35097 -
PBDITA 6 18.62072 -30.58944 9 27.65472 30.848343
2.417158 46.58171 45.55515 67.04132
PAT 4 7 -37.16078 5 2 -64.1698
6.902502 9.784807 5.399186 7.792160 13.96865
Net worth 2 6 5 7 4 3.1058053
1.243040 4.913947 7.714190 18.84017 9.219792
Total assets 9 9 1 3 4 6.0187795
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APGCMS, Rajampet
Raymonds Ltd.
Assets
Mar Mar Mar Mar Mar Mar
Raymond Ltd. 2003 2004 2005 2006 2007 2008
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
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APGCMS, Rajampet
Raymonds Ltd.
-
Gross fixed assets 986.45 1069.81 1358.53 1124.7 1528.39 1476.38
Land & building 136.3 146.68 178.72 198.33 343.07 353.36
Plant & machinery 731.14 787.78 964.41 607.4 829.5 783.73
Transport & comm.
equipment/infrastructure 55.47 60.49 62.09 43.15 103.89 157.29
Furniture,amenities & other fixed assets 51 55.18 58.92 18.49 28.49 40.19
Capital work-in-progress 11.59 18.73 91.13 255.64 111.1 36.8
Intangible assets 0.95 0.95 3.26 1.69 112.34 105.01
Group companies 0 0 0 0 0 0
Non-group companies 579.93 667.28 669.73 623.24 496.16 555.1
Market value of quoted investments 32.71 67.91 138.32 164.6 150.12 150.25
Current assets
Cash & bank balance 43.76 56.89 49.36 57.47 56.76 57.93
Inventories 369.28 377.58 370.96 444.78 571.22 666.5
Receivables 446.16 403.02 403.23 465.15 566.35 652.84
Expenses paid in advance 18.97 0 9.4 3.48 0 11.82
Liabilities
Mar Mar Mar Mar Mar Mar
Raymond Ltd. 2003 2004 2005 2006 2007 2008
12 12 12 12 12
Rs. Crore (Non-Annualised) mths mths mths mths mths 12 mths
-
Net worth 1011.57 1110.95 1174.93 1273.77 1435.03 1426.58
Authorised capital 100 100 100 100 100 100
Issued equity capital 61.38 61.38 61.38 61.38 61.38 61.38
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Raymonds Ltd.
Paid up equity capital (net of forfeited capital) 61.38 61.38 61.38 61.38 61.38 61.38
Forfeited equity capital 0 0 0 0 0 0
Paid up preference capital (net of forfeited capital) 0 0 0 0 0 0
Capital contibution, suspense and application
money 0 0 0 0 0 0
Current liabilities & provisions 314.23 311.4 299.78 405.51 576.68 601.11
Sundry creditors 138.99 136.55 147.73 226.76 316.21 330.6
Acceptances 7.24 5.51 4.79 2.83 3.39 5.07
Deposits & advances from customers &
employees 61.39 56.28 58.67 61.83 68.3 73.21
Interest accrued 3.73 3.18 4.96 5.78 5.03 11.7
Share application money 0 0 0 0 0 0
Other current liabilities 27.88 18.84 21.75 33.27 82.16 85.15
Provisions 75 91.04 61.88 75.04 101.59 95.38
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Raymonds Ltd.
Net worth (net of reval & DRE) 1010.69 1109.5 1174.93 1273.77 1421.68 1413.04
Contingent liabilities 0 0 0 0 0 0
Profits
Mar Mar Mar Mar Mar Mar
Raymond Ltd. 2003 2004 2005 2006 2007 2008
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
PBDITA 230.12 272.97 189.47 284.87 363.65 251.47
Depreciation 59.53 63.38 63.77 72.71 63.06 81.07
Amortisation 0 0 0 0 0 0
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Raymonds Ltd.
Prior period & extra-ordinary income 14.05 22.77 10.21 17.18 100.76 22.36
Prior period & extra-ordinary expenses 2.68 8.91 0.64 1.7 4.8 1.51
Net prior period & extraordinary
transactions -11.37 -13.86 -9.57 -15.48 -95.96 -20.85
Non--provisions 0 0 0 0 0 0
Diminution in investement 0 0 0 0 0 0
Sundry debtors 0 0 0 0 0 0
Loans & advances including NPAs 0 0 0 0 0 0
Loans & advances to group cos. 0 0 0 0 0 0
Interest expenses 0 0 0 0 0 0
Power expenses 0 0 0 0 0 0
Gratuity 0 0 0 0 0 0
Others 0 0 0 0 0 0
Shareholder's funds
Mar Mar Mar Mar Mar Mar
Raymond Ltd. 2003 2004 2005 2006 2007 2008
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
Net worth 954.35 1048.56 1103.93 1189.95 1356.17 1398.29
Authorised equity capital 100 100 100 100 100 100
Issued equity capital 61.38 61.38 61.38 61.38 61.38 61.38
Subscribed equity capital 61.38 61.38 61.38 61.38 61.38 61.38
Paid-up equity capital 61.38 61.38 61.38 61.38 61.38 61.38
Forfeited equity capital 0 0 0 0 0 0
Paid-up preference capital 0 0 0 0 0 0
Capital contibution, suspense & application money 0 0 0 0 0 0
Bonus share capital 42.53 42.53 42.53 42.53 42.53 42.53
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Raymonds Ltd.
Revaluation reserves 0 0 0 0 0 0
Accumulated losses 0 0 0 0 0 0
Revenue expenses directly charged to reserves 0 0 0 0 0 0
TOOLS OF ANALYSIS
RATIO ANALYSIS:
INTRODUCTION
Analysis and interpretation financial statements with the help of ratios are
termed as ‘Ratio Analysis’. Ratio analysis involves the process of computing,
determining, and presenting the relationship of items or groups of financial
statements.
MEANING OF RATIO
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APGCMS, Rajampet
Raymonds Ltd.
Accounting ratios are designed to show how one number is related to another and the
meaning of such relationship ratios is worked out by dividing one number by another
number. Accounting ratios measure and indicates efficiency of an enterprise in all
aspects.
CLASSIFICATION OF RATIOS
✔ Liquidity Ratios
✔ Solvency Ratios
✔ Turnover Ratios
✔ Profitability Ratios
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Raymonds Ltd.
SOLVENCY / LIQUIDITYRATIOS:
FINANCIAL RATIOS ARE CALCULATED ON THE BASIS OF ITEMS OF THE “BALANCE SHEET”.
1)SHORT TERM SOLVENCY RATIOS:
(a) CURRENT RATIO(CR):
The ratio of current assets to current liabilities is called “current ratio”. The
term current assets includes debtors,stock,bills ,receivables, bank and cash balances,
prepaid expenses, income due and short term investments.
The term current liabilities includes creditors, bank overdraft, bills payable, out
standing expenses, income received in advance,etc.Standard expected current ratio:
internationally accepted current ratio is 2:1i.e. Current assets shall be 2times to
current liabilities.
Current assets
CURRENT RATIO= ------------------
Current liabilities
Years C.A C.L RATIO(2:1
)
2003 650.03 268.27 2.42
2004 619.99 262.26 2.36
2005 `587.59 246.26 2.38
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Raymonds Ltd.
CURRENT RATIO
1.5
0.5
0
2003 2004 2005 2006 2007 2008
YEARS
INTERPRETATION:
From the above table it is observed that the current ratio is fluctuating it is
gradually decreased during year 2004,2006 and 2007 as current liabilities are
increased and finally increased during year 2008 due to decrease of current liabilities.
(b)QUICK RATIO(QR):
This ratio is called “LIQUID” or” ACID TEST” RATIO. It is calculated by
comparing the quick assets with current liabilities. Quick or liquid assets refer to
assets which are quickly convertible into cash. Current assets other than stock and
prepaid expenses are considered as quick assets.
the ideal liquid ratio or the generally accepted “norm” for liquid ratio is”1”.
Quick assets
QUICK RATIO = --------------------
Current liabilities
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APGCMS, Rajampet
Raymonds Ltd.
Q UICK RATIO
14 13.06
12
10
8
RATIO
6
4
2 1.33 1.23 1.18 1.09 1.1
0
2003 2004 2005 2006 2007 2008
YEA RS
INTERPRETATION:
From the above table it is observed that the quick ratio is showing a gradual
decrease during years 2003 – 2007 as there is an decrease in quick assets and finally
increased in 2008 as there is an increase in quick assets and decrease in current
liabilities.
(c) ABSOLUTE QUICK RATIO (AQR):
Absolute assets are cash, bank balance &marketable securities. This ratio
reveals the relationship between absolute quick assets and quick liability
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Raymonds Ltd.
0.88
0.9 0.82
0.8 0.77
0.7 0.66
0.6 0.51
0.5
Ratio
0.4
0.3 0.26
0.2
0.1
0
2003 2004 2005 2006 2007 2008
Years
INTERPRETATION:
From the above table it is observed that the Absolute Quick ratio increased year after
year from the period of 2003-05 because of the components like Cash & Bank balance
is increased, but decreased during 2006-07 because of the components like Cash and
Bank balance is low. Finally it is increased during 2008.
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Raymonds Ltd.
0.9 0.84
0.8
0.7
0.7 0.63
RATIOS 0.6
0.5 0.42
0.4 0.31 0.32
0.3
0.2
0.1
0
2003 2004 2005 2006 2007 2008
YEARS
INTERPRETATION:
From the above table it is observed that the debt-equity ratio is gradually
increased during 2003-2008 due to having high equity every year.
PROFITABILITY RATIO:
PAT
EARNING PER SHARE =------------------
-----------------------
NO.OF EQUITY SHARE
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Raymonds Ltd.
EPS
0.35 0.32
0.3
0.25
0.21
RATIOS
0.2 0.19
INTERPRETATION:
From the above table it is observed that during 2003-2008 the EPS is showing
fluctuating. It is having increase in 2004 due to more PAT and decrease in 2005 due
to less PAT. Finally decreased in 2008 due to less PAT.
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APGCMS, Rajampet
Raymonds Ltd.
16 15.65
14
11.89
12
10 8.71 8.79
RATIO
8 7.03
6 5.24
4
2
0
2003 2004 2005 2006 2007 2008
YEARS
INTERPRETATION:
From the above table it is observed that Net profit ratio during 2003-08 is
showing fluctuations, it has high increase in 2003.04,06 and 07 due to more net sales
and finally decreased due to low profit.
GROSS PROFIT RATIO(GPR):
This ratio is also known as gross margin or trading margin ratio. Gross profit
ratio indicates the difference between sales and direct costs. Gross profit ratio
explains the relationship between gross profit and net sales.
Gross profit
GROSS PROFIT RATIO =----------------------------*100
Net sales
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APGCMS, Rajampet
Raymonds Ltd.
30 27.08
24.53
25 22.22
20.07
20 18.2
Ratios 16.03
15
10
0
2003 2004 2005 2006 2007 2008
Ye a rs
INTERPRETATION:
From the above table & chart it is observed that the Gross profit ratio is
showing fluctuations, it has increased during year 2003,2004,2006&2007 due to high
sales & decreased during 2005 and 2008 due to low sales and PBDIT.
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APGCMS, Rajampet
Raymonds Ltd.
25
20.5
20 18.4
16.4
14.7
15
Ratios
11.3
10
6.91
5
0
2003 2004 2005 2006 2007 2008
Years
INTERPRETATION:
From the above table & chart it is observed that the Return on investment ratio
is showing fluctuations .In 2003&2004 it is high due to both PAT & total investment
are more it decreased in 2005 due to low PAT & increased in 2006 -07 due to more
PAT & finally decreased in 2008 of low PAT.
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APGCMS, Rajampet
Raymonds Ltd.
30 28.8
25
20 18.86
17.2
Ratios
15 12.87 11.8
10.32
10
0
2003 2004 2005 2006 2007 2008
Ye a rs
INTERPRETATION:
From the above table it is observed that during year 2007
the PAT of Raymonds Ltd. Is maximum (Rs.202.12crores) and during 2008 it is
minimum (Rs.72.42crores). Hence it is observed that there are fluctuations in PAT.
Finally, it is concluded that average PAT of Raymonds Ltd. is Rs116.86crores.
Table showing Total Income of Raymonds Ltd. during the year 2003-
2008.
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APGCMS, Rajampet
Raymonds Ltd.
20 18.62 18.81
17.89
18
16 15.4 15.5
13.6
14
12
Ratios
10
8
6
4
2
0
2003 2004 2005 2006 2007 2008
Ye a rs
INTERPRETATION:
From the above table it is observed that during year 2008 the total income of
Raymonds Ltd. is maximum (Rs.1543.36 crores) and during 2003 it is minimum
(Rs.1123.49 crores). Hence it is observed that total income is increased gradually at 1
%. Finally, it is concluded that average income of Raymonds Ltd. Is Rs.1367.27
crores.
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APGCMS, Rajampet
Raymonds Ltd.
10
8
6
4
2
0
2003 2004 2005 2006 2007 2008
Years
INTERPRETATION:
From the above table it is observed that during year 2008 the total salesof
Raymonds Ltd. is maximum (Rs.1380.42crores) and during 2003 it is minimum
(Rs.1035.27crores). Hence it is observed that total sales is increased gradually at
1.5%. Finally, it is concluded that average sales of Raymonds Ltd. Is Rs.1237.89
crores.
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APGCMS, Rajampet
Raymonds Ltd.
30
25
20
Ratios
15
10
5
0
2003 2004 2005 2006 2007 2008
Years
INTERPRETATION:
From the above table it is observed that during year 2007 the PBT of
Raymonds Ltd. Is maximum (Rs.239.41crores) and during 2008 it is minimum
(Rs.94.41crores). Hence it is observed that there are fluctuations in PBT.
Finally, it is concluded that average PBT of Raymonds Ltd. is Rs152.175crores.
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APGCMS, Rajampet
Raymonds Ltd.
25 22.8
19.2 19.8
20
15 14.2
Ratios
11.9 11.8
10
0
2003 2004 2005 2006 2007 2008
Years
INTERPRETATION:
From the above table it is observed that during year 2008
the total borrowings of Raymonds Ltd. is maximum (Rs.923.13crores) and during
2003 it is minimum (Rs.483.7crores). Hence it is observed that total borrowings is
increased gradually at 2 %. Finally, it is concluded that average borrowing rate of
Raymonds Ltd. Is Rs.674.53 crores.
Table showing Total Assets of Raymonds Ltd. during the year 2003-
2008.
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APGCMS, Rajampet
Raymonds Ltd.
25
20.6
19.44
20 17.8
14.97
15 13.25 13.9
Ratios
10
0
2003 2004 2005 2006 2007 2008
Years
INTERPRETATION:
From the above table it is observed that during year 2008 the total assetsof
Raymonds Ltd. is maximum (Rs.2745.95crores) and during 2003 it is minimum
(Rs.1765.79crores). Hence it is observed that total assets is increased gradually at 1.
%. Finally, it is concluded that average assets of Raymonds Ltd. is Rs.2220.28 crores.
Avg = 298.71
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APGCMS, Rajampet
Raymonds Ltd.
18.5 18.39
18 17.8
17.5
17
Ratios 16.45
16.5 16.04
16 15.82
15.47
15.5
15
14.5
14
2003 2004 2005 2006 2007 2008
Years
INTERPRETATION:
From the above table it is observed that during year 2008 the total inventories
of Raymonds Ltd. is maximum (Rs.329.74crores) and during 2003 it is minimum
(Rs.277.35crores). Hence it is observed that total inventories is increased gradually at
2 %. Finally, it is concluded that average inventories of Raymonds Ltd. Is Rs.298.71
crores.
FINDINGS
The quick ratio is showing a gradual decrease during years 2003 – 2007 as
there is an decrease in quick assets and finally increased in 2008 as there is an
increase in quick assets and decrease in current liabilities.
Absolute Quick ratio increased year after year from the period of 2003-05
because of the components like Cash & Bank balance is increased,but
decreased during 2006-07 because of the components like Cash and Bank
balance is low.Finally it is increased during 2008.
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APGCMS, Rajampet
Raymonds Ltd.
Net profit ratio during 2003-08 is showing fluctuations , it has high increase in
2003.04,06&07 due to more net sales and finally decreased due to low profit.
During year 2008 the total income of Raymonds Ltd. is maximum (Rs.1543.36
crores) and during 2003 it is minimum (Rs.1123.49 crores). Hence it is
observed that total income is increased gradually at 1 %. Finally, it is
concluded that average income of Raymonds Ltd. Is Rs.1367.27 crores.
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Raymonds Ltd.
CONCLUSION:
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Raymonds Ltd.
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APGCMS, Rajampet