MANAGEMENT EXECUTIVES GAUTAM HARI SINGHANIA, Chairman and Managing Director ANIRUDDHA DESHMUKH, President – FMCG & Textiles (Sales & Marketing) HARSHAL JAYAVANT, President – Engineering Business H. SUNDER, President – Finance & Chief Financial Officer K.A. NARAYAN, President – HR RAKESH PANDEY, President – Retail & Business Development ROBERT LOBO, President (Operations) – Group Apparel SHREYAS JOSHI, President – Group Apparel S.K. SINGHAL, President – Textiles S.L. POKHARNA, President – Commercial
DIRECTOR – SECRETARIAL & COMPANY SECRETARY THOMAS FERNANDES BANKERS BANK OF INDIA BANK OF MAHARASHTRA BANK OF AMERICA CENTRAL BANK OF INDIA CONTENTS Directors’ Report & Management Discussion and Analysis Corporate Governance Report Shareholder Information Auditors’ Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules ‘1’ to ‘15’ Schedule ‘16’ – Notes Forming Part of the Accounts Annexure I - Statement of Significant Accounting Policies and Practices Research and Development Expenditure Account Ten-Year Highlights Consolidated Account Details of Balance Sheet and Income and Expenditure of Subsidiary Companies Balance Sheet Abstract and Company’s General Business Profile Pages CITIBANK N.A. HDFC BANK LIMITED IDBI BANK LIMITED 2-10 11-20 21-24 25-27 28 29 30 31-45 46-61 62-63 63 64 65-79 79 INTERNAL & OPERATIONAL AUDITORS MAHAJAN & AIBARA Chartered Accountants REGISTERED OFFICE PLOT NO.156/H.NO. 2, VILLAGE ZADGAON RATNAGIRI - 415 612, MAHARASHTRA REGISTRAR & SHARE TRANSFER AGENT LINK INTIME INDIA PRIVATE LIMITED C-13, PANNALAL SILK MILLS COMPOUND, L.B.S MARG, 80 BHANDUP (WEST), MUMBAI – 400 078. STATE BANK OF INDIA STANDARD CHARTERED BANK THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED AUDITORS DALAL & SHAH Chartered Accountants
DIRECTORS’ REPORT & MANAGEMENT DISCUSSION AND ANALYSIS
DEAR MEMBERS, Your Directors are pleased to present their 85th report on the business and operations of your Company together with the Audited Statement of Accounts for the year ended March 31, 2010. 1. CORPORATE OVERVIEW Raymond Limited is India’s leading multi-product conglomerate with interests in textiles, garmenting, apparel, retail, lifestyle brands and engineering (files, tools and auto components) having its corporate headquarters in Mumbai. The Company prepares its financial statements in compliance with the requirements of the Companies Act, 1956, and the Generally Accepted Accounting Principles (GAAP) in India. Overall the financial statements have been prepared on the historical cost basis. FINANCIAL HIGHLIGHTS In the backdrop of the financial crisis witnessed in the previous financial year and the subsequent fallout, FY 2010 was an extremely challenging year for your Company. However, the resilience and inherent strengths of your Company’s brands, quality manufacturing and deep network relationships enabled your Company to weather the downturn and achieve better performance in FY 2010. Your Company continues to be the market leader in its core business. A number of rationalisation and restructuring initiatives were taken during the year under review to further consolidate its strengths and position itself to take advantage of the upturn. During FY 2010, your Company completed the restructuring exercise of the Files & Tools business by transferring it as a goingconcern on a slump sale basis to its wholly owned subsidiary JK Files (India) Limited (formerly known as Hindustan Files Limited) effective October 1, 2009. This restructuring brings together different entities of your Company’s Files & Tools businesses into a single legal structure and leverage synergies. In view of this restructuring, the standalone performance of the Company is strictly not comparable with...