MIRA INFORM REPORT

Report Date :

17.01.2011

IDENTIFICATION DETAILS

Name :	RAYMOND LIMITED
Registered Office :	Plot No. 156/H No.2, Village Zadgaon, Ratnagiri – 415 612, Maharashtra
Country:	India
Financials (as on):	31.03.2010
Date of Incorporation :	10.09.1925
Com. Reg. No.:	11-1208
CIN No.: [Company Identification No.]	L17117MH1925PLC001208
TAN No.: [Tax Deduction & Collection Account No.]	PNER07782F
PAN No.: [Permanent Account No.]	AAACR4896A
Legal Form :	Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of Fabrics, Rugs, Blankets, Shawls, Furnishing Fabrics, Garments and Hosiery Goods.

RATING & COMMENTS

MIRA’s Rating :

A (54)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 46916428
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company of J. K. Organisations. It has fine track of performance and financial status. Financial position of the company is good. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION DENIED BY

Management Non Co-Operative [Name not disclosed]

LOCATIONS

Registered Office :	Plot No. 156/H No. 2, Village Zadgaon, Ratnagiri – 415 612, Maharashtra, India
Tel. No.:	91-2352-232514 / 24939030
Fax No.:	91-2352-232513
E-Mail :	info@raymondindia.com, thomas.fernandes@raymond.in
Website :	http://www.raymondindia.com
Head Office :	New Hind House, N. M. Marg, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22618321 / 22642025 / 22694215 / 22694217
Corporate Office :	Mahindra Towers, 2^nd Floor, B Wing P. B. Marg, Worli, Mumbai – 400 018, Maharashtra
Tel. No.:	91-22-24939090/24939034/24939044/24939047/24939049 / 40349999
Fax No.:	91-22-24952232
E-Mail :	webmaster@raymond.in
Factory 1 :	Textile Division Ø Jekegram, Thane-400606, Maharashtra, India Ø Plot No. E/1, MIDC Area, Phase II, Ajanta Road, Jalgaon-425003, Maharashtra, India Ø B-1, A.K.V.N., Boregaon Industrial Growth Centre, Kailash Nagar, District Chhindwara-480001, Madhya Pradesh, India Ø N.H. No.8, Khaki-Udwada, Taluka Pardi, District Valsad-396185, Gujarat Denim Division Ø Plot C-1, MIDC Yavatmal, Lohara Village, Yavatmal – 445 001, Maharashtra, India J. K. Files and Tools Division Ø Jekegram, Thane-400606, Maharashtra, India Ø A-1, Mirjole Industrial Estate, MIDC, Kolhapur Road, Ratnagiri – 415 639, Maharashtra, India Ø Plot No. C 1/1 MIDC Area, Gane-Khadpoli, Chiplun – 415 605, District Ratnagiri, Maharashtra, India Ø Shed No. S/1 and S/2, Sector 1, Road No. 10, Pithampur – 454 775, District Indore, Madhya Pradesh, India Ø 22, New Tangra Road, Kolkata 700046, West Bengal Cement Division Ø Gopalnagar, Arasmeta, District Bilaspur, Madhya Pradesh, India Steel Division Ø Wadivarhe, District Nasik, Maharashtra, India Aviation Division Ø Mahindra Towers, B. Wing, P. B. Marg, Worli, Mumbai – 400 018, Maharashtra, India

DIRECTORS

Name :	Dr. Vijaypat Singhania
Designation :	Chairman Emeritus
Date of Birth/Age :	63 Years
Qualification :	A. M. P. (Harvard)
Experience :	42 Years
Date of Joining :	25.01.1980
Previous Employment :	J. K. Chemicals Limited – Chairman & Managing Director
Name :	Mr. Gautam Hari Singhania
Designation :	Chairman and Managing Director
Date of Birth/Age :	37 Years
Qualification :	B. Com.
Experience :	12 Years
Date of Joining :	01.04.1990
Name :	Mr. B. K. Kedia
Designation :	Chairman & Managing Director
Date of Birth/Age :	73 Years
Qualification :	M.A., A.M.P. (Harvard)
Experience :	51 Years
Date of Appointment :	24.05.1956
Previous Employment:	J. K. Cotton Mills Limited – Mills Secretary
Name :	Mr. Nana Chudasama
Designation :	Director
Name :	Mr. B. V. Bhargava
Designation :	Director
Name :	Mr. U. V. Rao
Designation :	Director
Date of Birth/Age :	78 Years
Experience :	43 Years
Directorship in other company :	v Ring Plus Aqua Limited v TIL Limited v Usha Martin Limited v Kirloskar Oil Enginers Limited v Kirloskar Brothers Limited v Dickinson Fowler Private Limited v John Fowler (India) Private Limited
Name :	Mr. P. K. Bhandari
Designation :	Whole time Director and Group President
Directorship in other company :	v Colorplus Fashions Limited v J.K. Investors (Bombay) Limited v J.K. Ansell Limited v Pashmina Investments Limited v Peoples Investments Limited v Polar Investments Limited v Radha Krshna Films limited v Raymond Apparel Limited v Raymond Zambaiti Private Limited v Silver Spark Apparel Limited v Tiger Travels and Tours Limited v J.K. (England) Limited v Regency Texteis Portuguesa, Limited v P.T. Jaykay Files Indonesia v Raymond UCO Denim Private Limited v Blueocean Capital and Advisory Services Private Limited
Name :	Mr. I. D. Agarwal
Designation :	Whole time Director and Deputy Group President (From April 24, 2003) (upto 28.02.2006)
Name :	Mr. Nabankur Gupta
Designation :	Director (Nominee of UTI) (from 29.10.2001)
Date of Birth/Age :	59 Years
Qualification :	Graduate
Directorship in other company :	v Colorplus Fashions Limited v J.K. Investo Trade (India) Limited v Cravatex Limited v E, Lexicon Public Relations and Corporate Consultants Limited v Pritish Nandy Communications Limited v B.P. Ergo Limited v P.T. Jaykay Files, Indonesia v Quantum Advisors Private Limited v PNC Wellness Private Limited v Blueocean Capital and Advisory v Services Private Limited
Name :	Mr. Anant Singhania
Designation :	Whole time Director and Group President
Name :	Mr. Nabankur Gupta
Designation :	Whole Time Director and Group President

KEY EXECUTIVES

Name :	Mr. Gautam Hari Singhania
Designation :	Director
Name :	Mr. Akshay Singhania
Designation :	Whole time Director and Group President (upto 31.07.2005)
Name :	Mr. Anant Singhania
Designation :	Whole time Director
Name :	Mr. P. K. Bhandari
Designation :	Whole time Director and Group President
Name :	Mr. F. M. Ali
Designation :	President – Delhi Office
Name :	Mr. V. K. Bhartia
Designation :	President (Delhi Office)
Name :	Mr. Ajit Mantagani
Designation :	President (Corporate)
Name :	Mr. S. K. Gupta
Designation :	President (Denim)
Name :	Mr. S. K. Kaul
Designation :	Vice President (Textile)
Name :	Mr. R. P. Nangalia
Designation :	Vice President (Files & Tools)
Name :	Mr. Marcel Parker
Designation :	President – HR
Name :	Mr. S. K. Singhal
Designation :	President – Textiles
Name :	Mr. Aniruddha Deshmukh
Designation :	President – FMCG and Retail
Name :	Mr. K. G. Jain
Designation :	Executive Director (J. K. Ansell Limited)
Name :	Mr. R. A. Prabhudesai
Designation :	Executive Director (Files & Tools)
Name :	Mr. Harshal Jayvant
Designation :	President – Engineering Business
Name :	Mr. Robert Lobo
Designation :	President – Shiring Fabric Business
Name :	Mr. Shreyas Joshi
Designation :	President – Group Apparel
Name :	Mr. H. Sunder
Designation :	Vice President – Finance
Name :	Mr. K.A. Narayan
Designation :	President
Name :	Mr. Deepak Khetrapal
Designation :	Chief Operating Officer
Name :	Mr. R. Narayanan
Designation :	Legal and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON (30.09.2010)

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
1. Indian
(a) Individuals / Hindu Undivided Family	813128	1.34
(b) Bodies Corporate	23112690	38.18
(B) Public Shareholding
1 Institutions
(a) Mutual Funds/UTI	5395198	8.91
(b) Financial Institution/Banks	23.913	0.04
(c) Insurance Companies	11254271	18.59
(d) Foreign Institutional Investors	4006071	6.62
2 Non -Institutions
(a) Bodies Corporate	2591818	4.28
(b) Individuals
i. Individual shareholders holding nominal share capital up to Rs.0.100 Million	12388092	20.46
ii. Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	950962	1.57
Any Other (Specify)
Trusts	198	-
© Shares held by Custodians and against which Depository Receipts have been issued	844512	1.38
Total	61380853	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Fabrics, Rugs, Blankets, Shawls, Furnishing Fabrics, Garments and Hosiery Goods.

Products:

Product Description	ITC Code No.
Woollen, Polyester/Wool Blended and Polyester / Viscose Blended Fabrics	51121900, 51123000, 55151300 and 55151100
Denim Fabric	52094200
Files, Rasps, Similar Tools and H.S.S. Drills	82031000 and 82075000

PRODUCTION STATUS (31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Wool Combling	Lac Kgs.	13.60	13.60	--
Wool Combling	Lac Kgs.	46.96	46.96	--
Wool Spinning – Spindles	-	1440	1440	--
Worsted Spinning- Spindles	--	22700	22700	--
Worsted Spinning- Spindles	--	55656	55656	--
Synthetic Spinning- Spindles	--	13728	13728	--
Synthetic Spinning- Spindles	--	3840	3840	--
Weaving – No of Looms	--	246	246	--
Weaving – No of Looms	--	243	243	--
Weaving – No of Looms	--	32	32	--
Hosiery – No of Machines	--	NA	37	--
Looms for Plush Fabrics	--	19	19	--
Trousers	Lac Nos.	5.44	1.80	--
Jackets	Lac Nos.	5.44	1.80	--
Fabrics	Lac Mtrs	NA	NA	326.43
Rugs, Blankets and Shawls	Lac Pcs	NA	NA	2.86
Files and Rasps – Lacs Nos	Lac Nos	NA	NA	200.95
H.S.S Twist Drills – Lacs Nos	Lac Nos	NA	NA	72.49
Bars and Rods	M.T.	NA	NA	2979.83

GENERAL INFORMATION

Suppliers :

v R.B. Engineering

v Real Mechanical Works

v Precision Reeds Manufacturing Company

v A.M. Plastics

v Raviraj Plastics

No. of Employees :

12000 (Approximately)

Bankers :

Ø Bank of India

Ø Central Bank of India

Ø Standard Chartered Grindlays Bank Limited

Ø State Bank of India

Ø Bank of Maharashtra

Ø The Hongkong and Shanghai Banking Corporation Limited

Ø Bank of America

Ø Citibank N.A.

Ø HDFC Bank Limited

Ø Standard Chartered Bank

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Term Loans from Banks (including foreign currency loan from banks during the year Rs. Nil ; Previous year Rs. 433.075 millions)	5766.927	6766.512
Term Loan from a Bank (Partly Secured)	1500.000	1500.000
Short Term Borrowings from Bank: Under Buyer’s Credit Arrangements	188.861	65.050
Working Capital Loans from Banks (including foreign currency loan from banks Rs. 0.116 Millions; Previous year Rs. 305.700 Millions)	113.773	356.919
Total	7569.561	8688.481

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Foreign Currency Loans from Banks	2295.100	2920.800
Long Term Borrowings from a Bank	1500.000	0.000
Short Term Borrowings from Banks:
Foreign Currency Loans	0.000	69.060
Under Buyer’s Credit Arrangements	162.424	0.000
Others	250.000	0.000
By issue of Commercial Papers (Maximum balance during the year Rs. 2000.000 millions; Previous year Rs.1900.000 millions)	750.000	1750.000
Sales Tax Deferment Loans	0.000	22.325
Total	4957.524	4762.185

Banking Relations :	Good
Auditors :	AUDITOR Dalal and Shah Chartered Accountants INTERNAL AND OPERATIONAL AUDITORS :- Mahajan and Aibara Chartered Accountants
Joint Ventures :	Raymond Zambaiti Limited(formerly Raymond Zambaiti Private Limited) GAS Apparel Limited (upto 30th September 2009) Rose Engineered Products India Private Limited. Raymond Uco Denim Private Limited and its subsidiaries UCO Fabrics Inc.and its Subsidiaries. UCO Sportswear International NV UCO Testatura SRL UCO Raymond Denim Holding NV Rayves Automotive Textiles Company Private Limited.
Subsidiaries	Raymond Apparel Limited Pashmina Holdings Limited Everblue Apparel Limited Jaykayorg AG Raymond (Europe) Limited [formerly J.K.( England) Limited] Regency Texteis Portuguesa, Limitada JK Files (India) Limited (formerly Hindustan Files Limited) Colorplus Fashions Limited Silver Spark Apparel Limited Celebrations Apparel Limited Ring Plus Aqua Limited Raymond Woollen Outerwear Limited R & A Logistics Inc. Scissors Engineering Products Limited JK Talabot Limited Soltaire Fashions Limited (formerly GAS Apparel Ltd.)(a subsidiary w.e.f. 1st October 2009

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10,00,00,000	Equity Shares	Rs.10/- each	Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6,13,80,853	Equity Shares	Rs.10/- each	Rs. 613.808 Millions

Note - 3,50,000 Equity Shares were allotted as fully paid-up pursuant to contracts without payments being received in cash and 4,25,28,312 Equity Shares were allotted as fully paid-up Bonus Shares by way of capitalisation of Securities Premium Account and Reserves.

includes 8,84,512 Equity Shares represented by Global Depository Receipts

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		613.808	613.808	613.808
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11115.299	10656.029	13369.042
4] (Accumulated Losses)		0.000	0.000	0.000
5] Share Warrants		0.000	208.695	208.695
NETWORTH		11729.107	11478.532	14191.545
LOAN FUNDS
1] Secured Loans		7569.561	8688.481	5049.804
2] Unsecured Loans		4957.524	4762.185	3820.304
TOTAL BORROWING		12527.085	13450.666	8870.108
DEFERRED TAX LIABILITIES		210.503	283.720	596.758
TOTAL		24466.695	25212.918	23658.411
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9404.185	9990.455	7195.251
Capital work-in-progress		416.428	621.069	135.836
INVESTMENT		8917.856	8885.946	10473.020
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2845.038	3404.036	3297.418
	Sundry Debtors	2969.435	3044.761	2898.856
	Cash & Bank Balances	265.616	467.994	218.248
	Other Current Assets	433.230	506.634	577.549
	Loans & Advances	2782.763	2393.108	2442.159
Total Current Assets		9296.082	9816.533	9434.230
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1929.530	2200.518	1700.774
	Other Current Liabilities	1107.184	1303.905	1123.779
	Provisions	531.142	596.662	755.373
Total Current Liabilities		3567.856	4101.085	3579.926
Net Current Assets		5728.226	5715.448	5854.304
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		24466.695	25212.918	23658.411

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	13349.741	13791.938	13225.115
		Other Income	920.907	986.040	1376.455
		TOTAL (A)	14270.648	14777.978	14601.570
Less	EXPENSES
		Material Costs	3912.588	4429.085	4685.529
		Manufacturing and Operating Costs	2464.924	2703.047	2646.716
		(Increase)/ Decrease in Finished and process Stock	554.562	(291.495)	(379.231)
		Employment Costs	2545.353	2610.026	2331.598
		Administrative, Selling and General Expenses	2780.107	3284.578	3043.768
		Loss/(Gain) on Variation in Foreign Exchange Rates (Net)	(89.736)	891.027	NA
		Other Expenses	(190.959)	(2388.995)	NA
		TOTAL (B)	11976.839	16015.263	12328.380
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2293.809	(1237.285)	NA
Less	FINANCIAL EXPENSES (D)		980.310	850.086	601.034
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1313.499	(2087.371)	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1113.065	888.135	810.671
	PROFIT BEFORE TAX (E-F) (G)		200.434	(2975.506)	816.966
Less	TAX (I)		(63.217)	(271.538)	155.749
	PROFIT AFTER TAX (G-I) (J)		263.651	(2703.968)	661.217

QUARTERLY RESULTS (UNAUDITED)

PARTICULARS	30.09.2010 (Rs. In Millions)	30.06.2010 (Rs. In Millions)
	2^nd Quarter	1^st Quarter
Net Sales	3985.300	2442.600
Total Expenditure	3196.800	2452.400
PBIDT (Excl OI)	788.500	(9.800)
Other Income	199.500	112.800
Operating Profit	988.000	103.000
Interest	225.300	210.100
Exceptional Items	(1.300)	(18.700)
PBDT	761.400	(125.800)
Depreciation	255.700	254.300
Profit Before Tax	505.700	(380.100)
Tax	113.900	(131.130)
Provisions and Contingencies	0.000	0.000
Profit After Tax	391.800	(248.800)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustment	0.000	0.000
Net Profit	391.800	(248.800)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.84	(18.29)	4.53
Net Profit Margin (PBT/Sales)	(%)	1.50	(21.57)	0.18
Return on Total Assets (PBT/Total Assets}	(%)	1.07	(15.02)	4.10
Return on Investment (ROI) (PBT/Networth)		0.01	(0.25)	0.06
Debt Equity Ratio (Total Liability/Networth)		1.37	1.52	0.25
Current Ratio (Current Asset/Current Liability)		2.60	2.39	2.64

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	Rs. In Millions 31.03.2010	Rs. In Millions 31.12.2009	Rs. In Millions 31.12.2008
Sundry Creditors	1929.530	2200.518	1700.774

HISTORY

Subject (formerly known as Raymond Woollen Mills) was incorporated in 1925. The company has five divisions comprising of Textiles, Denim, Engineering Files and Tools, Aviation and Designer wear 

Raymond Textile is India's leading producer of worsted suiting fabric with over 60% market share. With a capacity of 25 million meters of wool and wool-blended fabrics, Raymond Textiles is the world's third largest integrated manufacturer. The company exports its suitings to more than 50 countries including USA, Canada, Europe, Japan and the Middle East. Over the years, Raymond Textile has developed strong in-house skills for research and development, which has resulted in path-breaking new products. Perceived as pioneer and innovator, Raymond Textile has been responsible for raising the standard of the Indian textiles industry. 

The Denim division has an installed capacity of 20 million meters and produces high quality ring denims. The company currently ranks among the top 3 producers in India. The products are exported to over 30 countries in the world. The Engineering Files and Tools division, J K Files and Tools, is the world's largest producer of steel files with 90% market share in India and about 30% market share in the world. The Designer Wear division, Be: is an exclusive pret-a-porter range that houses designs by some of the finest Indian designers. Be: offers an eclectic mix of formal, office and evening wear for men and women, in western, ethnic and fusion styles with accessories. The Aviation division, Million Air was launched in 1996 to provide air charter services. Known for high quality and reliable services, Million Air has a fleet of three helicopters and one executive jet. 

The Company has its Textile Division located at Thane, Jalgaon, Chhindwara, Vapi. Denim Division located at Yavatmal , with J K Files and Tools Division located at Ratnagiri, Chiplun, Pithampur, Kolkata and Aviation Division located at Mumbai. 

The company has subsidiaries namely Raymond Apparel Limited, J K (England) Limited, Jaykayorg AG, Pashmina Holdings Limited, Everblue Apparel Limited, Regency Texteis Portuguesa Limited, Hindustan Files Limited, Colorplus Fashions Limited, Plugin Sales Limited, Silver Spark Apparel Limited, Celebrations Apparel Limited, Scissors Engineering Products Limited (with effect from 12th July 2005) and JK Talabot Limited (with effect from 6th July 2005) respectively.

During 1999-2000, the company divested its entire shareholding in Raymond Synthetics Limited (now known as Recron Synthetics Limited) to Silvassa Yarn and Investments Limited at a consideration of Rs.173.400 Millions. 

During 2000-2001, Raymond Calitri Denim Limited, a wholly owned subsidiary was amalgamated with the company with effect from April 1, 2000 with the orders of the High court of Bombay. The company also divested its core business viz textile and engineering files and tools, the Steel and Cement Divisions during the year. The sale of Steel Division to EBG India Private Limited was concluded for a total sum of Rs.4124 Millions and the sale of Cement Division to Lafarge India Limited was concluded for a sum of Rs.7750 Millions.  

During 2001-2002, the company acquired the entire equity and preference shareholding of Regency Texteis Portuguesa Limited, making it a wholly owned subsidiary of the company from 16th January 2002. Hindustan Files Limited also became a subsidiary w.e.f 1st April 2002. 

During 2002-2003, the company acquired 74.1% of the equity shareholding of ColorPlus Fashions Limited making it a subsidiary of the company w.e.f February 21, 2003. The Denim Division of the company expanded its production capacity from 10 million metres to 20 million metres in two phases during this period. The First phase of expansion of 5 million metres was available for part of the year, whereas the second phase of expansion of 5 million metres was completed in March 2003.  

During 2003-2004, the company planned to set up a new plant to manufacture suits and trousers through its subsidiary to provide conversion facilities for the companies fabrics in to garments. The enhanced production capacity of Denim Division with 20 million metres became operational during the last quarter of the year under review. Capital Expenditure of Rs.139.100 Millions was incurred during the year towards on-going modernization and upgradation of technical facilities in all the three parts of the Textile Division at Thane, Chhindwara and Jalgaon. Thane Plant was awarded a certificate jointly by Directorate of Industrial Safety and Health and Thane Manufacturers Association for 'Excellent Industrial Safety Performance' for the year 2002. Chhindwara and Jalgaon Plants also obtained ISO 9001-2000 certification from Det Norske Veritas of Netherlands during the year.  
During 2004-2005, the company entered into a MOU with MOB Outillage SA, a well known hand-tool manufacturer of France for setting up a Joint Venture Company for manufacture of steel files and rasps at Chiplun, Maharashtra, by relocating the files manufacturing facility of MOB in France at a total project cost of Rs.206.700 Millions. The company opened 3 more overseas outlets one each in U.A.E, Saudi Arabia and Bangladesh during the year 

During 2005-2006, the company entered into 50:50 joint venture with Lanificio Fedora SpA , Italy for setting up a project for manufacture, selling and distribution of woolen fabrics including blankets and shawls. The company also entered into MOU which is a joint venture between the company and Uco to combine the denim business of both the companies in a proposed 50:50 Joint Venture company. There was also another 50:50 Joint Venture which was set up by Raymond Zambaiti Private Limited promoted by the Company and Cotonoficio Honegger for the supply of top quality shirting fabric to premium customers. The company also diversified its product base in Files and Tools Division through introduction of hand tools, agri tools etc. The companies Production capacity of Denim Fabrics increased from 40 Million Sq Mtrs to 67.20 Million Sq Mtrs., Worsted Spinning Spindles capacity increased from 24920 Nos to 26520 Nos, No of Looms Weaving increased from 85 nos to 91 Nos, No of Looms for Plush Fabrics increased from 14 nos to 20 Nos, Cotton Yarn capacity increased from 17 Million Kgs to 18.80 Million Kgs. The companies capacity of Synthetic Spinning spindles was 3840 Nos. 

MANAGEMENT DISCUSSION AND ANALYSIS:

CORPORATE OVERVIEW

subject 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 the Company. However, the resilience and inherent strengths of the Company’s brands, quality manufacturing and deep network relationships enabled the 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, the Company completed the restructuring exercise of the Files and 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 the Company’s Files and 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 that of the previous year.

The Company closed down the operations at its high cost Thane unit in December 2009. A section of the workers accepted the voluntary retirement scheme and negotiations are on with the balance workers for an amicable settlement. During the year under review, the adverse changes in European market conditions coupled with the bankruptcy of a major customer rendered the operations of the Company’s wholly-owned subsidiary-Regency Texteis Portuguesa Limitada (Regency), Portugal, unviable and as a consequence, Regency filed for insolvency. The Company has made a provision of Rs.121.400 millions for diminution in the value of its exposures in Regency.

For the Financial Year ended March 31, 2010, the gross turnover of the Company was Rs.13393.700 millions as compared to Rs.13932.600 millions in the previous year. Profit before tax and exceptional items was Rs.188.800 millions as against a loss of Rs.587.500 millions in the previous year. The net profit, after exceptional items, prior year adjustments and provision for taxes was Rs.250.600 millions as against a net loss of Rs.2715.400 millions last year.

In order to conserve the resources of the Company and taking into account the prevailing economic situation, the need of resources for growth, the Board of Directors of the Company have decided not to recommend dividend for the financial year ended March 31, 2010.

The Company continues with its task to build businesses with long-term goals based on its intrinsic strengths in terms of its powerful brands, quality manufacturing prowess, distribution strengths and customer relationships. To accelerate further value creation, the Company continues to evaluate new areas of growth. The initiatives aimed at rationalising and streamlining operations, to bring about efficiencies and reducing costs, remain top priority.

Press Release

RAYMOND LIMITED - FINANCIAL RESULTS Q2FY2011

Raymond reports strong profit growth for the quarter ended

September 30, 2010

Highlights:

• PAT for the quarter registered 427% increase to Rs 390.000 millions from Rs 70.000 millions in the corresponding period of the previous year

• For half year ended 30 September 2010, PAT at Rs 140.000 millions as against loss of Rs 240.000 millions for previous year

• Textiles segment sales grew by 14%

Mumbai, October 26, 2010: Raymond Limited today announced its unaudited financial results for the quarter ended September 30, 2010.

The Textile segment sales for Q2FY11 registered an increase of 14% to Rs 3930.000 millions on the back of higher volumes and improved realizations in a buoyant domestic market. The Textile segment reported Earnings Before Interest and Tax (EBIT) of Rs 900.000 millions which is up by 44% compared to the corresponding period of previous year. The consequent EBIT margin for textile segment has improved to 23% in Q2FY11 from 18% in the previous year.

The Files and Tools Division has been transferred to J K Files (India) Ltd, a wholly owned subsidiary with effect from October 1, 2009 and hence the standalone results are not comparable on a like-to-like basis.

The snapshot of the standalone results is given below:

Raymond Ltd

	Q2FY11 (Rs. In Millions)	Q2FY10 (Rs. In Millions)	Y-o-Y
Income from operations	3950.000	3990.000	(1%)
EBITDA	990.000	730.000	35%

Note: Results are not comparable since Q2FY10 includes financials of Files and Tools division, which has since been transferred to a subsidiary

The net sales of the entire Files and Tools business was up 16% to Rs 590.000 Millions for the quarter.

The Branded Apparel business witnessed a 6% increase in sales to Rs 1740.000 millions and EBITDA of Rs 240.000 millions for the quarter. The closure costs of Zapp! brand have impacted margins.

Raymond continues to operate one of the largest specialty retail networks in India in the textile and apparel space with 665 retail stores covering over 1.4 million square feet of retail space. In addition, the Company also has 39 stores in Middle East and SAARC. Like-to-like store sales growth for Company-operated stores for the quarter has been strong at 10%.

The company has arrived at an amicable solution to the VRS settlement package issue involving 1885 workers of its Thane textile factory, which suspended operations in November 2009. The total package cost is approx. Rs 2600.000 millions, which is to be paid in two parts – the first part of Rs. 1500.000 millions would be disbursed to the workers immediately, while the balance Rs 1100.000 millions would be disbursed in three years. As on October 25, 2010 over 93% workers have opted for VRS settlement.

Announcing the results, Mr. Gautam Hari Singhania, Chairman and Managing Director, Raymond Limited said, “The 2010-11 financial year has thrown open numerous opportunities, predominant of which is the buoyant consumer sentiment. Raymond’s

focused efforts over the years towards tapping this great Indian consumer potential has enabled the Company to capitalize on these opportunities significantly during this financial year. Our strong performance over the quarter and half-year ended September 30, 2010 is a reflection of this and the various structural initiatives they undertook,

including restructuring their loss making denim business, closure of unviable operations, and rapid expansion of their retail footprint in smaller towns and cities. We remain bullish on the domestic consumption story and remain confident of their capabilities to focus on opportunities and grow rapidly.”

FIXED ASSETS:

· Land – Freehold

· Land – Leasehold

· Buildings

· Plant and Machinery

· Electrical Installations, Equipments

· Furniture, Fixtures and Equipments

· Livestock

· Vehicles

· Aircraft

· Boats and Water Equipments

· Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.74
UK Pound	1	Rs.71.88
Euro	1	Rs.60.84

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.