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Raymond Ltd.

BSE: 500330 Sector: Industrials
NSE: RAYMOND ISIN Code: INE301A01014
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OPEN 936.00
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VOLUME 2694
52-Week high 1280.00
52-Week low 390.00
P/E 10.26
Mkt Cap.(Rs cr) 6,281
Buy Price 942.05
Buy Qty 13.00
Sell Price 944.05
Sell Qty 20.00
OPEN 936.00
CLOSE 941.00
VOLUME 2694
52-Week high 1280.00
52-Week low 390.00
P/E 10.26
Mkt Cap.(Rs cr) 6,281
Buy Price 942.05
Buy Qty 13.00
Sell Price 944.05
Sell Qty 20.00

Raymond Ltd. (RAYMOND) - Auditors Report

Company auditors report

To the Members of Raymond Limited

Report on the Audit of the Standalone Financial Statements

Opinion

1.We have audited the accompanying standalone financial statements of Raymond Limited(‘the Company’) which comprise the Standalone Balance Sheet as at 31 March2022 the Standalone Statement of Profit and Loss (including Other Comprehensive Income)the Standalone Statement of Cash Flow and the Standalone Statement of Changes in Equityfor the year then ended and a summary of the significant accounting policies and otherexplanatory information.

2.In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements ("the financialstatements") give the information required by the Companies Act 2013 (‘theAct’) in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards (‘Ind AS’) specified under Section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 and other accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2022 and its loss (including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Basis for Opinion

3.We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor’s Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India(‘ICAI’) together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Emphasis of Matter

4. We draw a ention to note 54 to the accompanying standalone financial statementswhich states that pursuant to a Scheme of Arrangement (the "Scheme") enteredbetween the Company and Raymond Apparel Limited a wholly owned subsidiary of the Companyas approved by National Company Law Tribunal Mumbai Bench vide its order dated 23 March2022 the Company has accounted for such Scheme as per Appendix C to Ind AS 103 applicableto common control business combinations as per which the comparative financialinformation of the Company for the year ended 31 March 2021 has been restated to giveeffect to the aforesaid Scheme. Our opinion is not modified in respect of this matter.

5.We draw a ention to note 51 to the accompanying standalone financial statements withrespect to uncertainties relating to Covid-19 pandemic outbreak and management’sevaluation of its impact on the operations of the Company for the year and on theaccompanying standalone financial statements as at 31 March 2022 the extent of whichdepends on future developments. Our opinion is not modified in respect of this matter.

Key Audit Matters

6.Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

7.We have determined the matters described below to be the key audit matters to becommunicated in our report.

Key audit matters How our audit addressed the key audit matter Our procedures included but were not limited to the following:
Impairment testing of investments in and other recoverable from a joint venture Obtained an understanding of management’s process and evaluated design and tested operating effectiveness of controls around identification of indicators of impairment under Ind AS and around valuation of the business of the joint venture to determine recoverable value of the said investment and other assets;
Refer notes 5(ii) to the accompanying standalone financial statements As at 31 March 2022 the carrying amount of investment in Raymond UCO Denim Private Limited (the ‘joint venture’) is Rs. 18606.29 lakhs (net of provision for diminution in the value of investment of Rs. 14800 lakhs). Further as at such date the Company has loans interest and other receivables aggregating Rs. 3512.84 lakhs from the joint venture. Assessed the appropriateness of methodology and valuation model used by the management to estimate the recoverable value of investment in and recoverable from the joint venture;
Management has considered that the losses suffered by the joint venture indicate possible impairment in the carrying values of these assets. Accordingly the management has performed impairment assessment and has estimated the recoverable amount of its investment and recoverable in the joint venture using ‘Discounted Cash Flow valuation model’ which is complex and involves the use of significant management estimates and assumptions that are dependent on expected future market and economic conditions. Assessed the professional competence objectivity and capabilities of the valuation specialist engaged by the management;
As per such assessment done by the management the carrying value of the investment was impaired by Rs. 1000 lakhs in the current year as disclosed in note 5(ii) to the standalone financial statements. Assessed the reasonableness of assumptions relating to revenue growth rate gross margins discount rates terminal growth rate etc. as applicable based on historical results current developments and future plans of the business including the possible impact of COVID -19 pandemic on such assumptions estimated by management using expertise of valuation specialist on required parameters;
Considering the materiality of the carrying value of the amounts involved the significant management judgement required in estimating the quantum of diminution in the value of these assets and such estimates and judgements being inherently subjective this matter has been identified as a key audit matter for the current year audit. Assessed cash flow forecasts to ensure consistency with current operations of the Company and performed sensitivity analysis on key assumptions used in management’s calculated recoverable value;
Based on our procedures we also considered the adequacy of disclosures in respect of investment in and other recoverable from the said joint venture in note 5(ii) to the standalone financial statements.
Revenue recognition from real estate project under development Our audit procedures included but were not limited to the following:
Refer note 25 to the accompanying standalone financial statements. Evaluated the appropriateness of the Company’s accounting policy for revenue recognition from construction project;
Revenue recognised from real estate project under development (‘construction project’) during the year ended 31 March 2022 amounts to Rs. 70746.64 lakhs. In accordance with Ind AS 115 ‘Revenue from Contracts with Customers’ the Company has assessed and concluded that its performance obligations arising from the construction project satisfy the criteria for recognition of revenue over time. We focused on this area because significant management judgment was required in: Obtained an understanding of the management’s processes and evaluated the design and tested operating effectiveness of controls over the revenue recognition from construction project and estimation of total costs;
determining whether the criteria for satisfaction of performance obligation and recognition of revenue over time in terms of Ind AS 115 was met; Evaluated the appropriateness of the management’s assessment that the performance obligations arising from the construction project satisfy the criteria for revenue recognition over time in accordance with Ind AS 115;
estimating total contract costs of the construction project including contingencies that could arise from variations to the original contract terms and On a sample basis compared revenue transactions recorded during the year with the underlying agreement invoices raised on customers.
estimating the proportion of contract work completed for the construction project which requires estimates in relation to forecast contract revenue and total costs. The estimates of various contract related costs and revenue can potentially be impacted on account of various factors and differ from the actual outcomes. Changes in these judgements and the related estimates as contracts progress can result in material adjustments to revenue and margins. Considering the materiality of the amounts involved and the significant judgements applied in determining the appropriate accounting treatment as mentioned above this matter required significant auditor a ention and therefore has been identified as a key audit matter for the current year audit Assessed the reasonableness of key inputs and assumptions used in the contract cost estimation;
Examined costs included within work-in-progress (WIP) balances on sample basis by verifying the supporting documents;
Tested the mathematical accuracy of the underlying calculations;
Evaluated the adequacy and appropriateness of the disclosures made in the standalone financial statements by the management with respect to revenue from construction project.

Information other than the Financial Statements and Auditor’s Report thereon

8.The Company’s Board of Directors are responsible for the other information. Theother information comprises the information included in the Management Discussion andAnalysis Report on Corporate Governance Director’s Report etc. but does notinclude the standalone financial statements and our auditor’s report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

9.The accompanying standalone financial statements have been approved by theCompany’s Board of Directors. The Company’s Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive incomechanges in equity and cash flows of the Company in accordance with the Ind AS specifiedunder Section 133 of the Act and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

10. In preparing the financial statements the Board of Directors are responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intend to liquidate the Company or tocease operations or has no realistic alternative but to do so.

11. Those Board of Directors are also responsible for overseeing the Company’sfinancial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

12. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

13. As part of an audit in accordance with Standards on Auditing specified underSection 143(10) of the Act we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

Identifyandassesstherisksofmaterialmisstatementofthe

financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control;

Obtainanunderstandingofinternalcontrolrelevanttothe audit in order to design auditprocedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Actwe are also responsible for expressing our opinion on whether the Company has adequateinternal financial controls system with reference to financial statements in place and theoperating effectiveness of such controls;

Evaluatetheappropriatenessofaccountingpoliciesused and the reasonableness of accountingestimates and related disclosures made by management;

ConcludeontheappropriatenessofBoardofDirectors’use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw a ention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a going concern;

Evaluatetheoverallpresentationstructureandcontent of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation; 14. We communicatewith those charged with governance regarding among other matters the planned scope andtiming of the audit and significant audit findings including any significant deficienciesin internal control that we identify during our audit.

15. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

16. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor’s report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

17. As required by Section 197(16) of the Act based on our audit we report that theCompany has paid remuneration to its directors during the year in accordance with theprovisions of and limits laid down under Section 197 read with Schedule V to the Act.

18. As required by the Companies (Auditor’s Report) Order 2020 (‘theOrder’) issued by the Central Government of India in terms of Section 143(11) of theAct we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4of the Order to the extent applicable.

19. Further to our comments in Annexure A as required by Section 143(3) of the Actbased on our audit we report to the extent applicable that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit of theaccompanying standalone financial statements;

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c) The standalone financial statements dealt with by this report are in agreement withthe books of account;

d) In our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;

) On the basis of the wri en representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2022 from being appointed as a director in terms of Section 164(2) of the Act;

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company as on 31 March 2022 and the operating effectiveness ofsuch controls refer to our separate Report in Annexure B wherein we have expressed anunmodified opinion; and

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. the Company has disclosed the impact of pending on its financial position as at 31March 2022 in the standalone financial statements;

ii. the Company has made provision as at 31 March 2022 as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31 March2022;

iv.

a. The management has represented that to the best of its knowledge and belief nofunds have been advanced or loaned or invested (either from borrowed funds or securitiespremium or any other sources or kind of funds) by the Company to or in any person(s) orentity(ies) including foreign entities (‘the intermediaries’) with theunderstanding whether recorded in writing or otherwise that the intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Company (‘the UltimateBeneficiaries’) or provide any guarantee security or the like on behalf the UltimateBeneficiaries;

b. The management has represented that to the best of its knowledge and belief nofunds have been received by the Company from any person(s) or entity(ies) includingforeign entities (‘the Funding Parties’) with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party (‘Ultimate Beneficiaries’) or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; and

c. Based on such audit procedures performed as considered reasonable and appropriate inthe circumstances nothing has come to our notice that has caused us to believe that themanagement representations under sub-clauses (a) and (b) above contain any materialmisstatement.

v. The Board of Directors of the Company have proposed final dividend for the yearended 31 March 2022 which is subject to the approval of the members at the ensuing AnnualGeneral Meeting. The dividend declared is in accordance with Section 123 of the Act to theextent it applies to declaration of dividend.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Adi P. Sethna
Partner
Place: Mumbai Membership No.: 108840
Date: 16 May 2022 UDIN: 22108840AJBNCL9083

Annexure A referred to in Paragraph 18 of the Independent Auditor’s Report of evendate to the members of Raymond Limited on the standalone financial statements for the yearended 31 March 2022

In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we report that:

(i) (a) (A) The Company has maintained proper records showing full particularsincluding quantitative details and situation of its property plant and equipment rightof use assets and investment property.

(B) The Company has maintained proper records showing full particulars of intangibleassets.

(bThe Company has a regular program of physical) verification of its property plantand equipment (PPE) right of use assets and investment property under which the assetsare physically verified in a phased manner over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. In accordance with this program certain property plant and equipment right ofuse assets and investment property were verified during the year and no materialdiscrepancies were noticed on such verification.

(The title deeds of all the immovable properties classifiedc) as PPE includinginvestment properties held by the Company (other than properties where the Company is thelessee and the lease agreements are duly executed in favour of the lessee) are held in thename of the Company.

(The Company has not revalued its property plant andd) equipment (including right ofuse assets) or intangible assets during the year.

(No proceedings have been initiated or are pendinge) against the Company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder. Accordingly reporting under clause 3(i)(e) of the Order is notapplicable to the Company.

(ii) (a) The management has conducted physical verification of inventory at reasonableintervals during the year except for goods-in-transit and inventory lying with thirdparties. In our opinion the coverage and procedure of such verification by the managementis appropriate and no discrepancies of 10% or more in the aggregate for each class ofinventory were noticed. In respect of inventory lying with third parties these havesubstantially been confirmed by the third parties.

(bThe Company has a working capital limit in excess of) Rs 5 crore sanctioned by banksbased on the security of current assets. The quarterly statements in respect of theworking capital limits have been filed by the Company with such banks and such statementsare in agreement with the books of account of the Company for the respective periodswhich were not subject to audit.

(iii) (a) The Company has provided loans to 2 subsidiaries and 1 Joint Venture as perdetails given below:

Particulars Loans
Aggregate amount granted /provided
during the year
- Subsidiaries 61650.00
- Joint Venture 1000.00
Balance outstanding as at balance
sheet date in respect of above cases
- Subsidiaries 3500.00
- Joint Venture 2500.00

The Company did not provide any guarantee or security during the year.

(a) In our opinion and according to the information and explanations given to us theinvestments made guarantees provided and terms and conditions of the grant of all loansand guarantees provided (including in earlier years) are prima facie not prejudicial tothe interest of the Company.

(bIn respect of loans granted by the Company the) schedule of repayment of principaland the payment of the interest has been stipulated and the repayment/ receipt ofprincipal and interest are regular.

(There is no overdue amount in respect of loan grantedc) to such companies.

(The Company has granted loans which had fallen dued) during the year and such loanswere renewed/extended during the year to se le the dues of the existing loans given to thesame parties. The details of the same has been given below:

Name of the party Nature of loan Total loan amount (Rs. in lakhs) Nature of extension (i.e. renewed/ extended/fresh loan provided) Aggregate amount of overdues of existing loans renewed or extended or se led by fresh loans Percentage of the aggregate to the total loans or advances in the nature of loans granted during the
(Rs. in lakhs) year
Raymond Apparel Limited Loans 58150 Renewed 14000 24%
Raymond UCO Denim Private Limited Loans 1000 Renewed 750 75%

(The Company has not granted any loans or advances in the nature of loans which arerepayable on demand or withoute) specifying any terms or period of repayment.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofloans investments guarantees and security as applicable.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits or there is no amount which has been considered asdeemed deposit within the meaning of Sections 73 to 76 of the Act and the Companies(Acceptance of Deposits) Rules 2014 (as amended). Accordingly reporting under clause3(v) of the Order is not applicable to the Company

vi. The Central Government has specified maintenance of cost records under sub-section(1) of Section 148 of the Act in respect of the products of the Company. We have broadlyreviewed the books of account maintained by the Company pursuant to the Rules made by theCentral Government for the maintenance of cost records and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. However we havenot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete.

(vii) (a) In our opinion and according to the information and explanations given tous undisputed statutory dues including goods and services tax provident fundemployees’ state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and other material statutory dues as applicable havegenerally been regularly deposited with the appropriate authorities by the Company thoughthere have been slight delays in a few cases. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they became payable.

(bAccording to the information and explanations given to us there are no statutorydues referred in sub-clause (a) which have) not been deposited with the appropriateauthorities on account of any dispute except for the following:

Name of the statute Nature of dues Gross Amount (Rs. in lakhs) Amount paid under Protest (Rs. in lakhs) Period to which the amount relates Forum where dispute is pending
Central Excise Act Excise Duty 1714.48 898.14 FY 1997-99 2000-04 Supreme Court
203.03 11.24 FY 1991-94 1998-04 Central Excise and Service Tax Appellate Tribunal
21.63 7.87 FY 1994-96 1999-00 Commissioner
Finance Act 1994 Service Tax 80.44 80.44 May to July 2017 Customs Excise and Service Tax Appellate Tribunal
Custom Act Custom Duty 530.37 121.89 FY 2007-09 Central Excise and Service Tax Appellate Tribunal
Central Sales Tax Act and Local Sales Tax Central Sales Tax and Local Sales Tax (including Value Added Tax) 17.57 11.27 FY 1999-00 Supreme Court
57.81 45.88 FY 1995-97 High Court
248.88 71.11 FY 1996-97 1999-00 2007-13 Tribunal
1881.90 301.00 FY 1983-84 1985-86 1989-90 1992-00 2002-06 2007-18 Commissioner
The Income Tax Act 1961 Income Tax 404.88 404.88 AY 2006-07 2007-08 Income Tax Appellate Tribunal
181.78 140.69 AY 2006-07 2010-12 2015-19 Commissioner of Income Tax (Appeals)
Employee state Insurance Act 1948 Employee State Insurance 11.91 FY 1981-88 High Court
The Madhya Pradesh vidyut shulk adhiniyam 2012 Electricity Duty 673.31 562.96 FY 2012-16 High Court
The Indian Stamp Act 1899 Stamp Duty 2957.66 (*) - FY 2000-01 High Court

(*) The Company has a contractual right towards reimbursement of 50% of the amount ofdemand finally determined.

(viii) According to the information and explanations given to us no transactions weresurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961) which have not been recorded in the books of account.

(ix) (a) According to the information and explanations given to us the Company has notdefaulted in repayment of its loans or borrowings or in the payment of interest thereon toany lender.

(bAccording to the information and explanations given to us including representationsreceived from the management of the) Company and on the basis of our audit procedures wereport that the Company has not been declared a willful defaulter by any bank orfinancials institution or other lender.

(In our opinion and according to the information and explanations given to us moneyraised by way of term loans during thec) year were applied for the purposes for whichthese were obtained though idle/surplus funds which were not required for immediateutilization have been invested in readily realisable liquid investments.

(In our opinion and according to the information and explanations given to us and onan overall examination of the financiald) statements of the Company funds raised by theCompany on short term basis have not been utilised for long term purposes.

(According to the information and explanations given to us and on an overallexamination of the financial statements of thee) Company the Company has not taken anyfunds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures.

(According to the information and explanations given to us the Company has not raisedany loans during the year on thef) pledge of securities held in its subsidiariesassociates or joint ventures.

(x) (a) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly reporting underclause 3(x)(a) of the Order is not applicable to the Company.

(bAccording to the information and explanations given) to us the Company has not madeany preferential allotment or private placement of shares or (fully partially oroptionally) convertible debentures during the year. Accordingly reporting under clause3(x)(b) of the Order is not applicable to the Company.

(xi) (a) To the best of our knowledge and according to information and explanationsgiven to us no fraud by the Company or on the Company has been noticed or reported duringthe period covered by our audit.

(bNo report under Section 143(12) of the Act has been filed) with the CentralGovernment for the period covered by our audit.

(According to the information and explanations givenc) to us including therepresentation made to us by the management of the Company there are no whistle-blowercomplaints received by the Company during the year.

(xii) The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it. Accordingly reporting under clause 3(xii) of the Order is not applicable to theCompany.

(xiii) In our opinion and according to the information and explanations given to usall transactions entered into by the Company with the related parties are in compliancewith Sections 177 and 188 of the Act where applicable. Further the details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired under Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedin Companies (Indian Accounting Standards) Rules 2015 as prescribed under Section 133 ofthe Act.

(xiv) (a) In our opinion and according to the information and explanations given to usthe Company has an internal audit system as required under Section 138 of the Act which iscommensurate with the size and nature of its business.

(b) We have considered the reports issued by the Internal Auditors of the Company tilldate for the period under audit.

(xv) According to the information and explanation given to us the Company has notentered into any non-cash transactions with its directors or persons connected with themand accordingly provisions of Section 192 of the Act are not applicable to the Company.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly reporting under clause 3(xvi) of the Order is notapplicable to the Company.

(xvii) The Company has not incurred cash losses in the current financial year but hadincurred cash losses amounting to Rs. 28270.21 in the immediately preceding financialyear.

(xviii) There has been no resignation of the statutory auditors during the year.Accordingly reporting under clause 3(xviii) of the Order is not applicable to theCompany. the

(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the standalone financialstatements our knowledge of the plans of the Board of Directors and management and basedon our examination of the evidence supporting the assumptions nothing has come to our aention which causes us to believe that any material uncertainty exists as on the date ofthe audit report that Company is not capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.

(xx) According to the information and explanations given to us although the Companyfulfilled the criteria as specified under Section 135(1) of the Act read with theCompanies (Corporate Social Responsibility Policy) Rules 2014 however in the absence ofaverage net profits in the immediately three preceding years there is no requirement forthe Company to spend any amount under sub-section (5) of section 135 of the Act.Accordingly reporting under clause 3(xx) of the Order is not applicable to the Company.

(xxi) The reporting under clause (xxi) is not applicable in respect of audit ofstandalone financial statements of the Company. Accordingly no comment has been includedin respect of said clause under this report.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Adi P. Sethna
Partner
Place: Mumbai Membership No.: 108840
Date: 16 May 2022 UDIN: 22108840AJBNCL9083

Annexure B to the Independent Auditor’s Report of even date to the members ofRaymond Limited on the standalone financial statements for the year ended 31 March 2022

Independent Auditor’s Report on the internal financial controls with reference tothe standalone financial statements under Clause (i) of Sub-section 3 of Section 143 ofthe Companies Act 2013 (‘the Act’)

1.In conjunction with our audit of the standalone financial statements of RaymondLimited (the "Company") as at and for the year ended 31 March 2022 we haveaudited the internal financial controls with reference to standalone financial statementsof the Company as at that date.

Responsibilities of Management and Those Charged with Governance for Internal FinancialControls

2.The Company’s Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal financial controls with reference tostandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the "Guidance Note") issued by theInstitute of Chartered Accountants of India (‘ICAI’). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of theCompany’s business including adherence to the Company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor’s Responsibility for the Audit of the Internal Financial Controls withReference to Standalone Financial Statements

3.Our responsibility is to express an opinion on the Company’s internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Standards on Auditing issued by the ICAIprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to standalone financial statements and theGuidance Note issued by the ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to standalonefinancial statements were established and maintained and if such controls operatedeffectively in all material respects.

4.Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls with reference to standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tostandalone financial statements includes obtaining an understanding of such internalfinancial controls assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor’s judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

5.We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlswith reference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to Standalone FinancialStatements

6.A Company’s internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A Company’s internalfinancial controls with reference to standalone financial statements include thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe Company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of standalone financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company’s assets that could havea material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference to StandaloneFinancial Statements

7.Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

8.In our opinion the Company has in all material respects adequate internalfinancial controls with reference to standalone financial statements and such controlswere operating effectively as at 31 March 2022 based on the internal financial controlswith reference to standalone financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Adi P. Sethna
Partner
Place: Mumbai Membership No.: 108840
Date: 16 May 2022 UDIN: 22108840AJBNCL9083

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