EXECUTIVE SUMMERY

Audit report is very essential for a firm for the verification of the information. We have prepared
this report on the basis of audit report. Two firms audit report is observed in this report. From the
two firms, one is national and another one is international. . For this study, we selected Rahim
textile Ltd as the domestic company. That is a private Limited Company of Bangladesh and
another is Raymond LTD which operates in India. Raymond LTD is Indian multinational
garments company. We have analyzed the Audit reports for the year 2015-16 and found out how
Auditors conducted Audit, Audit report style, accounting principles, estimates, similarities, and
dissimilarities etc. In this report, there are short descriptions about both of the companies.
Raymond is one of Indias leading fabric and garment manufacturers. The company diversified
into the production of denim fabrics, cotton shirting and garments. It also built up a presence in
retailing and it claims to be Indias largest fabric and garment retailer. Rahim Textile Mills Limited
a well-known public limited company, started commercial operation in 1987 with dyeing, printing
and finishing unit.

We have found some similarities and dissimilarities between the two companies. The similarities
are: Audit reports of Rahim Textile Mills Ltd and Raymond LTD both are unqualified and prepared
in accordance with International Auditing Standards. Audit procedures of both companies are quite
same and both state that auditors have collected adequate evidence to give opinion.

Some dissimilarities are: the format of both companys audit reports are not same. Audit report of
Raymond LTD is influenced by Indian Companies Act-1913 and audit and assurance standards of
ICAI (Institute of Chartered Accountants of India) whereas audit report of Rahim Textile Mills
Ltd is influenced by Bangladesh Companies Act-1994 and audit and assurance standards of ICAB
(Institute of Chartered Accountants of Bangladesh). There are some other dissimilarities described
in the report.
 Introduction
The key function of an Audit is to provide companys stockholders with a professional,
independent opinion as to whether the financial statements of the company imitate a true and fair
view of the financial situation of the company and whether they can be relied on. Auditors give
reasonable assurance about the absence of material misstatements in financial statements. All these
are ensured because of the presence of independence, competent skills, and ethics in Auditors
which ensures task to be carried out in an objective manner, instead of subjective. The Auditors
Report is written in a standard format, as delegated by Generally Accepted Auditing Standards
(GAAS). GAAS requires or allows certain distinctions in the report, depending upon the
conditions of the Audit report that the Auditor engaged in. The audit report is the final product or
estimation of the financial statement.

Audit a firm, in the global marketplace, is the major component for business sustainability. And it
is recognized that, the success of the firm depends on the high quality services. So, the key strategy
for customer-focused firms is to monitor and measure customer satisfaction and service quality.
Clients loyalty is another component that is also needed for the firms. These three type of elements
that firms contribution services should strive for. The primary objective of service provider and
marketers is to provide services that satisfy customer needs and expectations. The satisfaction or
dissatisfaction of customers comes arise when they compare their experiences with their
expectations. So, the goal of the service provider should be to minimize the gap between
experiences and expectations.

Our main goal is to observe the appraisal between a domestic firm and international firm.
Developing a quality of service implement initiated in the marketing area and applying marketing
theory to examine audit service quality of the firm and customer satisfaction and loyalty, this report
contributes to both the marketing auditing of both companies.
 OBJECTIVE OF THIS STUDY
Objective of this study is to compare Audit report of one domestic company and another foreign
company of same industry. For this study, we selected Rahim textile Ltd as the domestic company
that is a private Limited Company of Bangladesh and another is Raymond LTD which operates
in India. Raymond LTD is Indian multinational garments company. We have analyzed the Audit
reports for the year 2015-16 of both the companies. In this Audit report, we looked carefully to
find out

How Auditors conducted Audit

Sampling method
Audit report style
Accounting principles
Estimates
Similarities, and dissimilarities etc.

At the end of this report, we have also given our opinion about the Audit reports.
 AUDITORS OF THIS REPORT
For Rahim textile Ltd The role of the auditors in certification of the financial statement is the
most significant aspect of Corporate Governance and protection of interest of investors. As evident
from the Annual Reports, the company rigidly follows the code of International Accounting
Standards (IAS) and Bangladesh Accounting Standards (BAS) with legally required
disclosures of Accounts and Financial Statements. This has been possible due to the high level
capability and integrity of M/s. Malek Siddiqui Wali, Chartered Accountants whose performance
has played a very trustworthy role in the protection of interest of the investors.

For Raymond LTD they were used three types of auditors for their audit report and those are:-

STATUTORY AUDITOR Messrs Dalal & Shah LLP, Chartered Accountants, (Registration
Number : 102021W/W100110) who are Statutory Auditors of the Company hold office up to the
forthcoming Annual General Meeting and are recommended for re-appointment for the financial
year 2016-17.
COST AUDITOR As per the requirement of Central Government and pursuant to Section 148 of
the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014 as
amended from time to time, The Company has been carrying out audit of cost records relating to
Textile Divisions every year. The Board of Directors, on the recommendation of Audit Committee,
has appointed Messrs R. Nanabhoy & Co., Cost Accountants, (Firm Registration Number 7464)
as Cost Auditor to audit the cost accounts of the Company for the financial year 2016-17.
SECRETARIAL AUDIT Pursuant to the provisions of Section 204 of the Companies Act, 2013
and rules made thereunder, the Company has appointed Messrs Ashish Bhatt & Associates, a firm
of Company Secretaries in Practice (C.P.No.2956) to undertake the Secretarial Audit of the
Company. The Secretarial Audit Report is annexed as Annexure - B and forms an integral part of
this Report. There is no secretarial audit qualification for the year under review.
 AUDITORS RESPONSIBILITY

The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement, whether caused by error or
fraud. Because of the nature of audit evidence and the characteristics of fraud, the auditor is able
to obtain reasonable, but not absolute, assurance that material misstatements are detected. The
auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that
misstatements, whether caused by errors or fraud, that are not material to the financial statements
are detected. [Paragraph added, effective for audits of financial statements for periods ending on
or after December 15, 1997, by Statement on Auditing Standards No. 82.]

The financial statements are management's responsibility. The auditor's responsibility is to express
an opinion on the financial statements. Management is responsible for adopting sound accounting
policies and for establishing and maintaining internal control that will, among other things, initiate,
record, process, and report transactions (as well as events and conditions) consistent with
management's assertions embodied in the financial statements. The entity's transactions and the
related assets, liabilities, and equity are within the direct knowledge and control of management.
The auditor's knowledge of these matters and internal control is limited to that acquired through
the audit. Thus, the fair presentation of financial statements in conformity with generally accepted
accounting principles fn3 is an implicit and integral part of management's responsibility. The
independent auditor may make suggestions about the form or content of the financial statements
or draft them, in whole or in part, based on information from management during the performance
of the audit. However, the auditor's responsibility for the financial statements he or she has audited
is confined to the expression of his or her opinion on them. [Revised, April 1989, to reflect
conforming changes necessary due to the issuance of Statement on Auditing Standards Nos. 53
through 62.]
 BACKGROUND OF RAYMOND LTD (INDIA)

Raymond was incorporated in 1925 and is a leading Indian textile major. The company is part of
global conglomerate Raymond Group. Raymond was the first in 1959 to introduce a polywool
blend in India to creating the world's finest suiting fabric the Super 240s made from the superfine
11.6 micron wool. It produces woolblended and premium polyester viscose worsted suiting.
Besides, Textile Company has also diversified in engineering and aviation. Raymond is largest
manufacturer of steel files in the world accounting 30% of market share.

Raymonds textile plant is located in Thane, Vapi and Chhindwara. These plants have received
various certifications such as ISO 9001 for quality management systems and ISO 14001
Environment Control Systems.

They claim to be the only company in the world to have a diverse product range of nearly 20,000
design and colors of suiting fabric to suit every age, occasion and style. Under this it manufactures
worsted fabrics, wool and wool blended fabrics. It has production capacity of 33 million meters
per annum and has a product range of nearly 20000 design and colors. The company exports to
over 55 countries that include USA, Canada, Europe, Japan and the Middle East. It retails the
products through 30,000 stores in over 400 towns across India. They have integrated the 4 Ps that
is, Product, Place, Price and Promotion into their marketing strategy so soundly that it virtually
ensures that this age old company will continue to reign over the fabric sector for years to come.
This case study explores not just Raymonds association with the 4 Ps of marketing but contrasts
it with the strategies implemented by its biggest competitors. A 100% subsidiary of Raymond Ltd.,
Raymond Apparel Ltd. (RAL) ranks amongst Indias largest and most respected apparel
companies.
 BACKGROUND OF RAHIM TEXTILE MILLS LTD.
(BANGLADESH)

.
Rahim Textile Mills Limited a well-known public limited company, started commercial operation
in 1987 with dyeing, printing and finishing unit. The company has pioneered the printing of
Viscose, Stretch Poplin, all categories of knit fabric and other textile products. The company has
pioneered for the printing of woven fabric and knit fabric and other textile products. They has Mon
forts Thermos sole dyeing range with E-Control & Kluster continuous dyeing machine for woven
fabric processing, which is truly the class of state of the art. The products of the processing mill
conform to the International standard. We treat all our affluent before discharge. We are also
equipped with the caustic recovery plant. We are an OEKO-Tax 100 product category, certified
company also certified under Organic Content Standard by Control Union and they have BCI
membership.

CORPORATE HISTORY:

Year of Incorporation : 31 December, 1981

Year of Commencement of Production : 01 July, 1987
Year of Initial Public Offering (IPO) : 1988
Stock Exchange Listing date : 29 March, 1988
Awarded Oeko-Tex Certificate : 20.09.2010
Authorized Capital : Tk.500 Million
Paid Up Capital : Tk.34.685 Million
Product Lines : Dyeing, Printing of Woven & Knit Fabrics
Number of Shareholders (30th June 2015) : 2641
Number of Employees (30th June 2015) : 423
 SIMILARITY OF RAHIM TEXTILE MILLS LTD. AND
RAYMOND LTD (INDIA) AUDITORS RESPONSIBILITY:

Both reports prepared in accordance with International Auditing Standards.

The Auditors have Audited Financial Statements including Balance Sheet, Profit & Loss
Account / Income Statement, Cash Flow Statement, Statement of Changes in Equity.

Both the auditing firms carried out an audit of internal control to determine extent and
degree of internal control, which led them to plan how many samples to take.

Audit reports of Rahim Textile Mills Ltd and Raymond LTD both are unqualified.

Audit procedures of both companies are quite same.

Both the firms followed GAAP to prepare financial statements and both the auditing firms
followed GAAS to prepare the audit report.

Both of the reports are issued towards shareholders of respective companies.

Audit reports of the two company states that auditors have collected adequate evidence to
give opinion.

Both countries Standard of Audit need to comply with ethical requirements and plan and
perform the Audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
DISSIMILARITY OF RAHIM TEXTILE MILLS LTD. AND
RAYMOND LTD (INDIA) AUDITORS RESPONSIBILITY:

The Format of the audit reports of Rahim Textile Mills Ltd and Raymond LTD are not
same. Audit report of Raymond LTD includes issues regarding legal and other regulatory
requirements whereas audit report of Rahim Textile Mills Ltd doesnt include these issues.
Managements Responsibility for the Financial Statements of both company are not same.
Raymond LTD Company Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 (the Act) with respect to the preparation of these
standalone financial statements to give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India on the other hand Rahim Textile Mills Ltd The
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with Bangladesh Accounting Standard(BAS)/Bangladesh
Financial Reporting Standards (BFRS), the companies Act 1994.
In the report of Rahim Textile Mills Ltd, responsibility of auditors in defined in scope
Paragraph but in the report of Raymond LTD, responsibilities of auditors is defined under
a separate head comprising of five paragraphs.
Auditors Responsibility of those company are not same. Raymond LTD we conducted our
audit in accordance with the Standards on Auditing specified under Section 143(10) of the
Act and other applicable authoritative pronouncements issued by the Institute of Chartered
Accountants of India on the other hand Rahim Textile Mills Ltd their responsibility is to
express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Bangladesh Standards on Auditing (BSA).
Audit report of Raymond LTD is influenced by Indian Companies Act-1913 and audit and
assurance standards of ICAI (Institute of Chartered Accountants of India) whereas audit
report of Rahim Textile Mills Ltd is influenced by Bangladesh
Raymond LTD controls internal management strongly which contributes to taking much
information and also do auditing to gather huge evidence. By contrast Rahim Textile Mills
Ltd controls their internal management but not as strong as Raymond LTD.
 AUDITORS OPINION

Malek Siddiqui Wali (Chartered Accountants) audited the company of the domestic firm Rahim

textile Mills Ltd. and Dalal & Shah LLP audited the foreign company Raymond LTD. They

audited the consolidated financial statements of the group and the separate financial statements of

the company give a true and fair view of the consolidated financial position of the group and the

separate financial position. Both the Auditors have the same opinion of those companies,

unqualified, for their respective clients and both reports prepared in accordance with International

Auditing Standards. This shows that financial statement from both Rahim textile Mills Ltd. and

Raymond LTD had all the required characteristics to be unqualified.

 Conclusion:

Audit report is very crucial for the firms. In this report, the importance of audit report can be seen

through the audit reports of both companies. Audit report is important for users of financial

statements because, they provide the information whether it is valid or not. It helps to take financial

decision. Without an audit system, a company would not be able to create reliable financial reports

for internal or external purposes. So, the importance of audit report cannot be denied. In this report,

it shows some similarities and differences between these two firms reports. But the management

policy Audit rules and regulation, responsibility are not same in a local and a foreign company. By

using that perspective Auditors analyses the reports and made their opinions. It also shows how

audit report is important for both of the firm.

 References:

http://www.rahimtextile.com/Annual-Report

http://www.raymond.in/ir_fr.asp#.Wg3Rc1WWbIU