A

ProjectReporton“AStudyofRaymond”

Submitted by

MishantLilare

Guided by

Ms.AnitaMathapati

Inpartialfulfillmentof

BachelorDegreeinBusinessAdministration

A.Y.2023-2024

From

ATSSCollegeofBusinessStudiesandComputerApplications
ChinchwadPune19.

AffiliatedtoSavitribaiPhulePuneUniversityNAACAccredited
 Declaration

It is hereby declared that all facts and figures included in this project is the result of my own research
and investigation including formal analysis of the entire project work and the same has not been
previously submitted to any examination ofthis University or any other University.

Thisdeclarationwillholdgoodandinmywisebeliefwithfull Consciousness.

Date:

Place:Chinchwad,Pune19

Name& Signatureofthestudent
 Acknowledgement

I hereby acknowledge their sincere gratitude to Audyogik Tantra Shikshan Sanstha

(A.T.S.S.) for giving me an opportunity to undergo the BBA courseand to undertake the
project work successfully.

I would like to articulate gratitude to their Faculty Guide PrincipalDr.Vishwas Swami

and H.O.D. Dr. Aarti Kulkarni and Mr./Ms./ Dr. Anita Mathapati, subject teacher in
Audyogik Tantra Shikshan Sanstha (A.T.S.S.) for their valuable and great support for
the project work and guiding me time to time at each stage of the projectand giving
suggestions as and when required.
Iwouldalsoliketoexpresstheirgratitudetothemanagementcommercestaffandfaculty
isfor providing anopportunity to undertake the projectsuccessfully

Lastbut not the least they would like to of deepest and heartiest gratitude tothe family
members and friends who supported me at each stage of the project and guided me in
completing the project work successfully.

MishantLilare
PRN.No.1012104502

3
 INDEX

Sr. No. Particular Page No.

1 Introduction 5
2 BalanceSheet 6-9
3 Profit & LossStatement 10-11
4 DataAnalysis&Interpretation 12-23
 Ratio Analysis
5 Conclusion 24
6 Suggestion 25

4
 INTRODUCTION
Raymond Limited the largest integrated manufacturer of worsted fabric in the world is a
leading Indian lifestyle textile and branded apparel company with interests in engineering
such as files power tools auto-components) FMCG and realty. The Company was
incorporated as the Raymond Woolen mill during the year 1925 in the area around Thane
creek. The Company has its corporate headquarters at Mumbai. The company comprises in
three business divisions such as Textiles Engineering and Aviation. Textile division of the
company has a distribution network of more than 4000 multi-brand outlets and over 400
exclusive retail shops in the domestic market itself.

Suitings are available in India in over 400 towns through 30000 retailers and an exclusive
chainis presentinover150citiesacross Indiaand overseas especiallytheproductsexportsto over
55 countries including USA Canada Europe Japan and the Middle East. The group has three
engineering divisions J.K. Files & Tools J.K. Talabot Ltd. to cater to national and
international markets and a controlling interest in Ring Plus Aqua Ltd engaged in the
manufacture of auto components. Raymond Ltd. is one of the first Corporate Houses in India
to launch Air Charter Services in India and since then it has been always a way ahead for
Raymond Aviation under the name of Million Air and have a fleet of 3 helicopters and 1
executive jet for the busy corporate executive. Lala Juggilal Lala Kailashpat Singhania took
over The Raymond Woollen Mill in the year 1944.

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 BALANCE SHEET

Raymond PreviousYears»

StandaloneBalanceSheet

EQUITIES AND LIABILITIES

SHAREHOLDER'SFUNDS

EquityShareCapital 66.57 64.72 61.38 61.38 61.38

TotalShareCapital 66.57 64.72 61.38 61.38 61.38

ReservesandSurplus 1,602.43 1,716.20 1,307.43 1,255.68 1,162.66

TotalReservesandSurplus 1,602.43 1,716.20 1,307.43 1,255.68 1,162.66

TotalShareholdersFunds 1,669.00 1,780.92 1,368.81 1,317.06 1,224.04

Hybrid/Debt/OtherSecurities 0.00 1.85 0.00 0.00 0.00

NON-CURRENTLIABILITIES

LongTerm Borrowings 1,007.05 230.55 189.47 410.68 473.97

OtherLong TermLiabilities 203.47 232.61 14.44 61.06 17.96

TotalNon-CurrentLiabilities 1,210.52 463.16 203.91 471.74 491.92

CURRENTLIABILITIES

Short Term Borrowings 207.02 1,086.86 1,284.18 747.82 812.23

TradePayables 640.74 671.26 615.01 541.07 400.07

OtherCurrentLiabilities 655.99 635.78 742.24 878.60 638.82

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Short Term Provisions 39.73 38.57 43.06 37.59 39.11

TotalCurrentLiabilities 1,543.48 2,432.47 2,684.49 2,205.08 1,890.23

Total Capital AndLiabilities 4,423.00 4,678.41 4,257.21 3,993.88 3,606.20

ASSETS

NON-CURRENTASSETS

Tangible Assets 1,102.33 1,214.85 1,065.13 1,057.06 568.87

IntangibleAssets 0.00 1.50 0.60 50.02 0.00

CapitalWork-In-Progress 0.00 25.72 47.27 10.10 285.38

IntangibleAssetsUnder
Development 0.00 4.75 0.00 0.00 0.00

OtherAssets 0.00 4.59 4.80 5.01 5.23

Fixed Assets 1,102.33 1,251.41 1,117.80 1,122.19 859.48

Non-CurrentInvestments 474.03 467.97 453.37 469.04 469.38

DeferredTax Assets [Net] 116.38 60.91 15.86 11.45 24.39

LongTerm LoansAndAdvances 29.00 103.18 105.77 183.84 167.87

OtherNon-CurrentAssets 83.88 155.47 136.32 131.80 186.19

TotalNon-CurrentAssets 1,805.62 2,038.94 1,829.12 1,918.33 1,707.30

CURRENTASSETS

CurrentInvestments 79.20 180.02 251.82 335.09 367.00

Inventories 1,000.83 1,290.11 1,059.09 936.87 698.27

TradeReceivables 585.95 537.63 675.93 618.95 713.96

Cash And Cash Equivalents 473.11 300.76 101.85 66.94 38.75

ShortTermLoansAnd Advances 120.00 0.00 83.78 0.00 12.25

OtherCurrentAssets 358.29 330.94 255.63 117.71 68.66

TotalCurrentAssets 2,617.38 2,639.47 2,428.10 2,075.55 1,898.89

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Total Assets 4,423.00 4,678.41 4,257.21 3,993.88 3,606.20

OTHERADDITIONAL
INFORMATION

CONTINGENTLIABILITIES,
COMMITMENTS

ContingentLiabilities 0.00 369.98 320.49 284.37 147.95

CIFVALUEOFIMPORTS

EXPENDITUREINFOREIGN EXCHANGE

ExpenditureIn Foreign Currency 0.00 398.09 460.86 348.99 3.21

REMITTANCES IN FOREIGN
CURRENCIESFORDIVIDENDS

Dividend Remittance In Foreign

Currency - - - - -

EARNINGS IN FOREIGNEXCHANGE

FOBValueOfGoods - - - - -

OtherEarnings - 145.07 147.07 149.58 1.74

BONUSDETAILS

Bonus EquityShareCapital - 42.53 42.53 42.53 42.53

NON-CURRENTINVESTMENTS

Non-CurrentInvestmentsQuoted
MarketValue - - 72.30 73.52 74.31

Non-CurrentInvestments
Unquoted Book Value - 3.87 5.32 0.99 2.44

CURRENTINVESTMENTS

CurrentInvestmentsQuoted - 13.64 16.32 13.39 13.73

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MarketValue

CurrentInvestmentsUnquoted
Book Value - 166.38 235.50 321.70 353.27

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Raymond PreviousYears»

Standalone Profit & Loss

account -------------------inRs.Cr.-------------------

Mar22 Mar21 Mar20 Mar19 Mar18

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 1,752.41 3,186.39 3,276.39 3,011.56 2,822.18

NetSales 1,752.41 3,186.39 3,276.39 3,011.56 2,822.18

Other Income 139.07 169.77 139.90 179.43 115.63

StockAdjustments -272.60 225.33 114.90 236.39 28.67

TotalIncome 1,618.88 3,581.49 3,531.19 3,427.38 2,966.48

Expenditure

Raw Materials 550.45 1,644.07 1,681.97 1,609.04 1,412.21

Power&FuelCost 0.00 103.97 113.07 111.64 115.38

Employee Cost 321.28 477.43 463.86 423.01 374.60

OtherManufacturing Expenses 0.00 322.82 241.77 267.92 147.69

Sellingand Admin Expenses 0.00 104.83 120.78 123.77 135.52

MiscellaneousExpenses 608.43 503.78 532.03 503.21 506.46

Total Expenses 1,480.16 3,156.90 3,153.48 3,038.59 2,691.86

Mar'21 Mar'20 Mar'19 Mar'18 Mar'17

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 12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit -0.35 254.82 237.81 209.36 158.99

PBDIT 138.72 424.59 377.71 388.79 274.62

Interest 170.17 194.49 174.75 147.45 144.36

PBDT -31.45 230.10 202.96 241.34 130.26

Depreciation 145.04 155.32 108.59 95.71 90.37

ProfitBeforeTax -176.49 74.78 94.37 145.63 39.89

PBT(Post Extra-ord Items) -176.49 74.78 94.37 145.63 39.89

Tax -58.00 -24.42 20.42 43.40 13.27

ReportedNet Profit -118.49 94.32 73.82 98.07 33.83

TotalValueAddition 929.71 1,512.83 1,471.50 1,429.53 1,279.65

PreferenceDividend 0.00 18.41 0.00 0.00 0.00

Equity Dividend 0.00 0.00 18.41 7.67 18.41

CorporateDividendTax 0.00 3.79 3.79 1.56 3.75

Persharedata(annualised)

Sharesinissue (lakhs) 665.70 647.19 613.81 613.81 613.81

EarningPer Share(Rs) -17.80 11.73 12.03 15.98 5.51

EquityDividend (%) 0.00 0.00 30.00 30.00 12.50

BookValue (Rs) 250.71 275.18 223.00 214.57 199.42

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 DATAANALYSIS&INTERPRETATION

 CURRENTRATIO

Current Assets
Current ratio =
CurrentLiabilities
CURRENT CURRENT CURRENT
Year
ASSETS LIABILITIES RATIO
2018 362726 351470 1.03
2019 398025 387464 1.03
2020 472724 462302 1.02
2021 426454 412665 1.03
2022 453645 442563 1.02

Interpretation-

As the current ratio is between 1.03: 1 to 1.02:1 it denotes that the firm is adequately
liquid and has the ability to meet its current obligations. As the Quick ratio of the firm is
successively decreasing from 1.03:1 in the year 2020-19 to 1.02:1 in the year 2021-20 the
Company has many paying debtors near ideal ratio of 1:1.

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  CASH RATIO

CASHANDMARKETABLESECURITIES
CASH RATIO =
CURRENTLIABILITIES
Year CASHBALANCES CURRENT CASH
LABILITIES RATIO
2018 28147.41 351470 0.08
2019 34714.7 387464 0.09
2020 44828.8 462302 0.93
2021 54635.47 321463 0.16
2022 35487.36 432664 0.08

Interpretation –

As the cash ratio has decreased considerable in 2019 after increasing in 2020, it shows that
Company has utilized liquidity and increased profitability. the Company has effective
management.

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  TOTALDEBTTOEQUITY RATIO

TOTALDEBTS
TotalDebt equity ratio =
SHAREHOLDERS FUNDS

Year TOTALDEBTS SHAREHOLDER DEBT

FUNDS RATIO
2018 14521.57 22689.96 0.64
2019 16668.18 24877.88 0.67
2020 16883.46 29620.11 0.57
2021 15358.54 25643.01 0.63
2022 14624.26 24631.64 0.59

Interpretation-
Itindicatesthemarginof safetytolongtermcreditors.Alowdebt-equityratioimpliesthe use of more
equity than debt which means a larger safety margin for creditors.

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  DEBTORSTURNOVERRATIO

SALES
DEBTORSTURNOVERRATIO =-----------------------------
AVERAGEDEBTORS
AVERAGE
YEAR SALES D.T.RATIO
DEBTORS
2018 236446.83 31968.33 7.40
2019 296139.66 38067.66 7.80
2020 343666 45278 7.60
2021 286426.04 34654 8.26
2022 293467.06 31532 9.30

Interpretation-
It indicates the speed at which the debtorsand the credit collection efforts of the enterprise. It
has a high ratio indicating shorter collection period and prompt payments by debtors.

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  Fixedassetturnoverratio

NetSales
FixedAssetTurnoverRatio=
NetFixedAsset

Year SALES NETFIXEDASSETS F.A.T.RATIO

2018 33778.22 375313.55 0.09
2019 37230.94 435386.75 0.08
2020 43480.37 483115.22 0.09
2021 421686.4 463446.01 0.09
2022 385462.1 435468.04 0.08

Interpretation-
It indicates the firm’s ability to generate sales per rupee of investment in fixed assests. As the
fixed assets ratio shows a decreasing trend does not means it is less efficient as it is moderate
and balanced.

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  CURRENT ASSESTSTURNOVER RATIO

SaleCurre
YearntAssetTurnoverRatio
SALES CURRENTASSETS
= C.A.T.RATIO
2018 33778.22 362726 0.093
-----------------------
2019 37230.94 398025 0.094
2020 43480.37 472724 0.092
2021 42644.64 386421 0.110
2022 45414.06 394564 0.115

Interpretation-

It indicates the firm’s ability to generate sales per rupee of investment in current assests. The
current assests turnover ratio is slowly increasing trend as a result the Company is more
efficient in management of current assests.

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  CAPITALTURNOVERRATIO

Sales
CAPITALEMPLOYED=FIXEDASSET+CURRENTASSET +INVESTMENT-
CAPITALTURNOVERRATIO=
CURRENTLIABILITY
CapitalEmploye
Year SALES CAPITAL C.T.RATIO
EMPLOYED
2018 33778.22 14113.2 2.39
2019 37230.94 13422.7 2.77
2020 43480.37 17064.26 2.55
2021 44246.04 146652.3 0.30
2022 36874.64 246456.4 0.14

Interpretation-

Thefirmdoesnothavetoohighratiohenceitindicatesefficientmanagementastoohigh ratio is not

good as it indicates of over trading and too low as under capitalization.

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  WORKINGCAPITAL TURNOVER RATIO

NETSALES
WORKINGCAPITAL TURNOVERRATIO= WORKING CAPITAL

Year SALES WORKINGCAPITAL w.c.t.ratio

2018 33778.22 11256 3
2019 37230.94 10561 3.5
2020 43480.37 10422 4.2
2021 38643.14 12436 3
2022 34654.38 11646 2.97

Interpretation-

The working capital turnover ratio suddenly increased in year 2022 .The high ratio indicates
the more efficient management and utilization of working capital.

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  Grossprofitratio:

Grossprofit=Netsales-Costofgoods sold Gross

profitGross profit margin Ratio =
Costofgoods sold=Opening stock+material consumed+ mfg .exp- closing stock
_____________________________________
100

Year GROSSPROFIT SALES G.P.RATIO(%)

2018 3354.17 33778.22 9.93
2019 2989.63 37230.94 8.03
2020 3147.9 43480.37 7.24
2021 3214.46 38642.28 0.08
2022 34564.1 39462.34 0.87

Interpretation-

higherthe ratiothemore efficienttheproductionorpurchasemanagement,the aboveratio denotes good

recovery in year 2022.

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  NET PROFITRATIO:-

NET PROFIT
PROFITAFTER NETPROFIT
YEAR SALES
NETPROFITRATIO=_____________________100
TAX RATIO (%)
2018 3282.71 33778.22
NET SALE 9.71
2019 2872.10 37230.94 7.71
2020 2438.19 43480.37 5.60
2021 2864.16 43564.24 6.57
2022 2734.14 48614.46 5.62

Interpretation-

The Company net profit ratio has increased from 9.1 % in 2018 to 10.69% in 2019 which is
ideal for a Company. Neither too high nor too low net profit indicates better survival of
Company.

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  OPERATING RATIO

Operating
Operatingcost=CostofGoodsSold+OperatingExpenses cost
Operating
Operating expenses ratio=
expenses =Admin expenses+ Selling expenses
__________________________________________

Year OPERATINGCOST SALES OPERATINGRATIO (%)

2018 3516.31 33778.22 10.40
2019 3194.41 37230.94 8.57
2020 3395.82 43480.37 7.81
2021 3463.04 41436.06 8.35
2022 2467.06 44665.46 5.52

Interpretation-

The operating ratio of the firm is decreasing and lowest in 3 years which indicates that lower
the ratio, greater is the operating profit to cover the non-operating expenses, to pay dividend
and to create reserves.

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  ReturnonInvestment

Theconventional approachofcalculatedROIisto dividePAT byinvestment.

E.B.I.T
Return on investment(ROI)=_____________________100
Year EBIT CAPITALEMPLOYED
Capital Employed R.O.I.RATIO
2018 33778.21 14113.2 239.33
2019 37230.9 13422.7 277.37
2020 43480.37 17064.26 254.80
2021 38946.06 16434.26 236.98
2022 40346.82 17864.34 225.85

Interpretation-

A consistent high ratiofrom 239.33% in 2018while 2019 being themost profitable year with
277.34% to 254.80% in 2020 indicates that the firm is efficient in the management and
utilization of Capital Employed.

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 CONCLUSION

 Liquidity ratios, both current ratio and quick ratio are showing effectiveness in
liquidity as in all the years current ratio is greater than the standard 2:1 and quick
ratio is greater than the standard 1:1 ratio.
 The firm is maintaining a low cash balance and marketable securities which means
they done cash payments.
 Debt equity ratio, solvency ratio and interest coverage ratio are showing an average
increase in the long term solvency of the firm.
 The proprietary ratio is showing an average increase which means, the shareholders
have contribute more funds to the total assets.
 Average payment period of the firm is showing the credit worthiness of the firm toits
suppliers.
 Fixed assets turnover ratio is showing that the firm needs lesser investment in fixed
assets to generate sales.
 The increasing trend of current assets turnover ratio indicates that the firm needs
more investment in current assets for generating sales.
 The gross profit ratio, net profit ratio is showing the increasing trends. The
profitability of the firm the increasing.
 OperatingratiooftheCompanyhasobserveddecreasingtrend,henceit maybegood control
over the operating expenses.
 The interest that has to be paid is very less when compared to the sales. The firm is
not utilizing the debt conservatively.
 Thefirm isretaining muchof theearnings (basedon dividendpayout ratio).

 The Company financial performance is very good and also they will increase their
business year by year by expanding their branches.

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 SUGGESTION

 The Company has to increase the profit maximization and has to decrease the operating
expenses.

 By considering the profit maximization in the Company the earning per share,investment
and working capital also increases. Hence,the outsiders are also interested to invest.

 The Company should maintain sufficient cash and Company balances; they shouldinvest
the idle cash in marketable securities or short term investments in shares, debentures,
bonds and other securities.

 The Company must reduce its debtors collection period from 83 & 84 days to 40 days be
adopting credit policy by providing discounts to the debtors.

 Return on investment is fluctuates every year. The Company has to make efforts in
increasing return on investments by reducing its administration, selling and other
expenses.

 TheCompany should increaseits interest coverageratioto servelong termdebts.

 The net profit of the Company is increasing over the study period. Hence the
organization maintaining good control on all trees of expenses.

 The dividend per share has observed as raising trend over the study period, hence it may
be suggested Raymond Companysshould take key interest to maximize.

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