01-08 - Raymond

1 ANNUAL REPORT 2018 1901-08 About Raymond 02 Chairman and managing Director s Message04 Lifestyle CEO s Overview06 Group CFO s Overview08 Consolidated Financial Highlights70-135 Standalone Financial Statements70 Auditor's Report76 Balance Sheet77 Statement of Profit and Loss78 Cash Flow Statement81 Notes136-208 Consolidated Financial Statements136 Auditor's Report142 Balance Sheet143 Statement of Profit and Loss144 Cash Flow Statement147 Notes206 Details of Subsidiary/Associate/Joint Venture Companies208 Ten-Year HighlightsTable of ContentsOnline regarding forward-looking statementsThis Annual Report contains statements about expected future events and financial and operating results of Raymond Group, which may be classified as forward-looking.

2 By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Do not place undue reliance on forward-looking statements as a number of factors could cause assumptions and actual future results or events to differ materially from those expressed in these forward-looking statements. The Raymond Group (or Company ) includes reference to the Raymond Limited, its Subsidiaries, Joint Ventures and Directors' Report & Management Discussion and Analysis Report48 Corporate Governance ReportEmbarking on the transformational journey three years back and being agile in our strategy of Raymond Reimagined , we are steadfast on our path towards building the Raymond for tomorrow.

3 In FY 2018-19, we entered a phase of focused execution, building tech-enabled capabilities and platforms that would gear the organisation for futuristic long-term growth and value creation. For FY 2019-20, we are preparing ourselves for future opportunities to fulfil our vision to build on our strengths, capabilities and offerings. 2 | Annual Report 2018-19 About RaymondThe business continues to build capacities for enhanced performance and delivery across verticals with innovative products and services as well as technology adoption that include digitisation and and managing Director's MessageTomorrow on our mindRaymond Limited | 3 Dear Shareholders,With Raymond Reimagined in our heart and tomorrow on our mind, we are re-writing the fundamental rules by which our group is run today.

4 To meet the aspirations of an ever evolving consumer, rapidly changing dynamics of work environment and how humans are embracing technology, we are well on course on the journey of augmenting who we a strong financial performance during FY 18-19 by all our businesses and purposeful strides on strategic milestones, we are making steady progress towards our vision of Raymond Reimagined. The business continues to build capacities for enhanced performance and delivery across verticals with innovative products and services as well as technology adoption that include digitisation and automation. As the inevitable march of technology continues, the Raymond of today has positioned itself at the forefront of this movement to enable futuristic growth and sustained value creation backed by future-ready eco-systems, AI, machine learning, advanced analytics, and , we remain committed to ensuring the highest standards of corporate governance and excellence at Raymond .

5 I continue to advocate that if family businesses don t adapt and bring in the distinction of ownership and management then they run the risk of being obsolete. Having said that, I stepped down as Chairman of Raymond Apparel Limited in November 2018. As a large business, it was crucial for me to give up on all the responsibilities of day to day management of multiple businesses and the company s leadership team has been reconstituted with the induction of new board members, bringing in valuable expertise and these broad changes and the infusion of talented and experienced leadership, the company is geared for exceptional growth. In FY 2019-20 the Indian economy is expected to continue its journey of growth, the key demand driver being its growing population of young and aspiring professionals.

6 This presents an opportunity for us as we have aggressively expanded our physical presence across the country to ensure last mile delivery. Our digital platforms complement these efforts by offering a seamless customer experience. Also, our international operations continue to stabilise that is boosting our presence in US and Europe. I am also happy to report that our linen manufacturing plant in Amravati stabilised in FY company is exploring newer avenues to continue to enhance shareholder value. This objective marks its foray into the real estate sector with Raymond Realty. This foray underlines our aim to unlock value and to monetise company s assets by developing 20 acres from the land parcel that it holds in a bid to encourage inclusive growth, Raymond continues to enrich the tailoring ecosystem, providing a platform for skill development in the textiles and apparel manufacturing industry by rapidly adding tailoring hubs across the country.

7 In addition, we created over 3 million hours of employability for Khadi artisans in more than 75 clusters across 16 states in with the pioneering initiatives in the field of education and providing equal opportunities to all, at Raymond Group, we stay committed to our role in creating access and excellence in education. We have added yet another school as Smt. Sunitidevi Singhania School at Thane, which is due to commence in the academic year starting June, 2019. Today, we impart quality education to 10,000 children a year through our various schools and have a vision to take this number to 1,00,000 students , with tomorrow on our mind, we are building capabilities enabled by technology to create an organisation that is nimble footed and ready for future opportunities.

8 Taking forward the last years customer centricity theme ahead, and in the era where differentiated products and services will keep us ahead of the curve, we are focussed to keep consumer at the forefront to create a new legacy for Hari Singhania Chairman and managing Director4 | Annual Report 2018-19 About RaymondInspired by the fashion megatrends and an ever accelerating impact of digital technologies in shaping consumer behaviour, we are incessantly creating relevant platforms and eco-systems to strengthen Raymond s position in the domestic and global Shareholders,Stepping up our commitment to the vision-backed strategy of Raymond Reimagined pivoted on the core of customer-centricity, FY 2018-19 has been about accelerating the transformational change it set in motion over the past few years.

9 We are confronted with an increasingly dynamic and volatile market catalysed by intersection of multiple digital technologies and newer global fashion trends leading to a defining impact in shaping today s consumer behaviour. This paradigm of an ever evolving new consumer gives us a great opportunity for exponential growth over the coming by the fashion megatrends and an ever accelerating impact of digital technologies in shaping consumer behaviour, we are incessantly creating relevant platforms and eco-systems to strengthen Raymond s position in the domestic and global markets. The new Raymond is increasingly getting well positioned to capitalise on these emerging opportunities by building newer organisational capabilities across the entire value chain of Fibre to Fashion.

10 FUTURE-READY SUPPLY CHAIN AND LAUNCH OF NEW ERPT echnology-led innovations are enabling Raymond to achieve wider customer reach while setting the stage for adoption of futuristic technologies such as Artificial Intelligence, Machine Learning, and Advanced Data Analytics. Tech-based optimisation and digitisation of the supply chain up to the last mile in our traditional textile businesses is Lifestyle CEO s OverviewBuilding capabilities for tomorrow today!already transforming our value chain by enhancing serviceability metrics, strengthening the dealer network and reducing fabric business has pioneered a B2B tool Midas to streamline the process of placing orders and connecting the entire retail network across the urban and rural expanse of our country through a easy to use mobile app.