Raymonds Ltd.

COMPANY PROFILE

Incorporated in 1925, Raymond is one of the well-established company in the textile

and garments industry, promoted by the Vijaypat Singhania group. With a 31 million
meters capacity in wool & wool-blended fabrics, Raymond claims to have over 60 per
cent market share in worsted suiting in India. It ranks amongst the first three fully
integrated manufacturers of worsted suiting in the world. The company provides total
textile solutions -- from worsted suiting to shirting. The manufacturing units of the
company are spread over Maharashtra, Madhya Pradesh and Gujarat.

Raymond's business is divided into three major segments -- textiles, files & tools and
air charter services. Textiles division forms the core business of the company with a
contribution of 77 per cent to total sales during 2006--07. The product range under
this segment includes wool & wool-blended fabrics, worsted suiting, wool blended
and premium polyester viscose worsted suiting, blankets and shawls and other
specialty fibres like Cashmere, Angora, Alpaca, Pure Silk, Linen, etc. The files &
tools division is engaged in the manufacture of engineers' files and rasps, drills, tools,
bars and rods. In 1996 Raymond launched Million Air, its aviation division to provide
air charter services aimed mainly at the corporate travel segment.

The denim business of Raymond was combined with that of UCO NV, Belgium to
form a 50:50 joint venture `Raymond UCO Denim Pvt. Ltd.', in August 2006. The
joint venture will create a global presence for the denim business and help service
customers in three major markets of the world -- USA, Europe and Asia. The joint
venture has a combined denim fabric capacity of 80 million metres per annum.

Over the years, the company has entered into other diverse businesses spanning
designer-wear, furnishings, woollen outware, engineering, auto components,
cosmetics & toiletries and prophylactics through various subsidiaries and joint
ventures. Raymond Apparel Ltd. (100 per cent subsidiary of the company) is amongst
the largest apparel companies in the country with brands like Manzoni, Park Avenue,
ColorPlus, Parx, Be:, Zapp! and Notting Hill. The Raymond group also has an
expansive retail presence established through the exclusive chain of `The Raymond
Shop' (TRS) and stand--alone brand stores. Currently, the company has more than 430

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stores in India, Middle East and South Asia spread across 170 cities with
approximately 1,000,000 square feet of retail space. As a part of its aggressive retail
expansion strategy, Raymond plans to roll out 950 TRS and exclusive brand stores
across the country with over two million square feet of retail space by 2010

The company ventured into the engineering business with the establishment of J.K.
Files & tools in 1949. It manufactures files, cutting tools, hand tools and agri tools
and commands a global market share of over 30 per cent in the steel files business.
Raymond forayed into automotive components by acquiring controlling stake in `Ring
Plus Aqua Ltd.'. It manufactures flywheel starter gears and integral shaft bearings for
water pumps. The company also has presence in personal care and grooming products
for men through the brands park avenue and premium.

Basic information

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 Raymonds Ltd.

INDUSTRY : Woven fabrics of wool

ROC Reg. No. : 1208

Incorporation Year : 1925

Ownership : Vijaypat Singhania Group

Website : Vijaypat Singhania Group

ISIN Code : INE301A01014

BSE Demat Code : 500330

BSE Listing group :B

Face value (Rs) : 10

Beta : 0.957

Bankers
Bank Of India

Bank Of Maharashtra

Bank Of America National Trust & Savings Association

Central Bank Of India

Citibank N A.

H D F C Bank Ltd.

Hongkong & Shanghai Banking Corpn. Ltd.

State Bank Of India

Standard Chartered Bank

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 Raymonds Ltd.

BOARD OF DIRECTORS

Directors Name Designation

Vijaypat Singhania Ch Emeritus

Gautam Hari Singhania Ch & Md

B K Kedia Director

Nana Chudasama Director

Anant Singhania Director

B V Bhargava Director

U V Rao Director

I D Agarwal Director

Nabankur Gupta Director

P K Bhandari Exec. Director

R Narayanan Director & Co. Secretary

Contact information

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 Raymonds Ltd.

Registered office
Address
Street : Plot No. 156/H. No.2, Village Zadgaon
City : Ratnagiri
Pincode : 415612
State : Maharashtra
Email address : webmaster@raymondindia.com
Website : www. raymondindia.com

Telephone and fax numbers

Country code : 91
Area code : 2352
Tel no. : 232514
Fax no. : 232513

Head office
Address
Street : 1st Floor,New Hind House, Narottam Morarjee Marg,Fort
City : Mumbai
Pincode : 400001
State : Maharashtra

Telephone and fax numbers

Country code : 91
Area code : 22
Tel no. : 22618321

STUDY OBJECTIVES:

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The Report aims at finding out the following objectives

➢ To study the company performance through profitability ratio

➢ To study the impact of liquidity ratio on the company

➢ To study the growth rate of the company

Executive Summary
Mar Mar Mar Mar Mar Mar
Raymond Ltd. 2003 2004 2005 2006 2007 2008
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 1123.49 1268.68 1272.45 1467.88 1527.76 1543.36
Sales 1035.27 1112.35 1181.48 1375.47 1342.84 1380.42

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Income from financial services 66.99 125.19 68.65 66.85 75.18 124.9

Total expenses 1034.53 1141.51 1168.19 1365.1 1366.6 1521.84

Raw material expenses 298.13 375.77 417.46 488.01 425.9 445.43
Power, fuel & water charges 81.27 83.43 83.92 93.81 85.33 82.16
Compensation to employees 169.31 181.25 228.18 212.86 232.43 237.6
Indirect taxes 84.83 82.42 23.58 21.38 16.27 15.59
Selling & distribution expenses 99.7 93.33 100.71 116.53 130.28 134.17
Other operational exp. of indl.
enterprises 28.4 31.16 41.17 57.71 66.24 71.4
Other oper. exp. of non-fin. service
enterprises 0 0 0 0 0 0

PBDITA 230.12 272.97 189.47 284.87 363.65 251.47

PBDTA 191.48 250.42 161.91 235.12 302.16 175.48
PBT 131.95 187.04 98.14 162.41 239.1 94.41
PAT 90.25 132.29 83.13 121 202.12 72.42

Net worth 954.35 1048.56 1103.93 1189.95 1356.17 1398.29

Paid up equity capital (net of forfeited
capital) 61.38 61.38 61.38 61.38 61.38 61.38
Reserves & surplus 892.97 987.18 1042.55 1128.57 1294.79 1336.91

Total borrowings 483.7 478.35 577.63 779.13 805.29 923.13

Current liabilities & provisions 268.27 262.26 246.26 318.7 353.81 342.76

Total assets 1765.79 1852.56 1995.47 2371.42 2590.06 2745.95

Gross fixed assets 932.57 1004.13 1220.54 1522.76 1315.72 1358.99
Net fixed assets 417.59 431.03 592.55 845.09 761.74 733.11
Investments 612.32 715.87 734.27 736.6 984.47 1047.3
Current assets 650.03 619.99 587.59 672.68 673.32 765.97
Loans & advances 75.19 78.12 67.43 97.44 151.61 177.46

Growth (%)
2.735053 12.92312 0.297159 4.079352
Total income 7 3 3 15.35856 5 1.0211028
10.34092 16.85599 0.109882
Total expenses -0.520222 8 2.337255 1 1 11.359579
2.480516 50.35097 -
PBDITA 6 18.62072 -30.58944 9 27.65472 30.848343
2.417158 46.58171 45.55515 67.04132
PAT 4 7 -37.16078 5 2 -64.1698
6.902502 9.784807 5.399186 7.792160 13.96865
Net worth 2 6 5 7 4 3.1058053
1.243040 4.913947 7.714190 18.84017 9.219792
Total assets 9 9 1 3 4 6.0187795

Profitability ratios (%)

PBDITA Net of P&E/Total income net of 19.71715 20.79684 18.56965 18.75893 15.16239
P&E 5 7 14.25244 6 5 3
PAT Net of P&E/Total income net of 7.109893 5.827734 7.273729 7.439383 3.390532
P&E 3 9.505502 8 9 3 5
8.529319 11.82579 9.200132 8.338962 3.744472
PAT Net of P&E/Avg. net worth 5 3 6.834875 5 8 6
9.758761 7.724077 10.54981 15.87670
PAT/Avg. net worth 3 13.20978 7 1 7 5.258381
4.494714 6.546077 4.832729 4.279368 1.932904
PAT Net of P&E/Avg. total assets 9 6 3.823255 9 3 9

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5.142596 7.312172 4.320652 5.541701 8.147568 2.714387

PAT/Avg. total assets 7 7 4 3 9 7

Liquidity ratios (times)

1.182130 2.479662 1.968607 1.890453 1.332831 1.977972
Current ratio 6 4 6 3 9 9
0.507007 0.523248 0.654758 0.593797 0.660184
Debt to equity ratio 1 0.456711 8 6 2 9
4.120600 8.679822 4.213715 3.953366 3.327858 1.968022
Interest cover 4 6 5 8 2 1
110.0302 89.06380 74.40688 64.63334 71.70671 74.88816
Debtors (days) 6 6 8 4 9 8
64.76044 76.15556 83.03038
Creditors (days) 80.44903 7 64.07152 1 9 72.18607

Efficiency ratios (times)

0.640760 0.701538 0.661554 0.672277 0.615848 0.578469
Total income / Avg. total assets 4 6 3 1 5 7
Total income / Compensation to 6.635697 6.999613 5.576518 6.572989 6.495622
employees 8 8 5 6.895988 7 9

Assets
Mar Mar Mar Mar Mar Mar
Raymond Ltd. 2003 2004 2005 2006 2007 2008
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths

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-
Gross fixed assets 986.45 1069.81 1358.53 1124.7 1528.39 1476.38
Land & building 136.3 146.68 178.72 198.33 343.07 353.36
Plant & machinery 731.14 787.78 964.41 607.4 829.5 783.73
Transport & comm.
equipment/infrastructure 55.47 60.49 62.09 43.15 103.89 157.29
Furniture,amenities & other fixed assets 51 55.18 58.92 18.49 28.49 40.19
Capital work-in-progress 11.59 18.73 91.13 255.64 111.1 36.8
Intangible assets 0.95 0.95 3.26 1.69 112.34 105.01

Net pre-operative expenses pending

allocation 0 0 0 0 0 0
Net lease reserve adjustment 0 0 0 0 0 0
Less: Cumulative depreciation 543.64 605.81 668.12 0 0 0
Less: Arrears of depreciation 0 0 0 0 0 0

Net fixed assets 442.81 464 690.41 1124.7 1528.39 1476.38

Investments 574.28 665.82 666.64 625.29 580.79 637.03

Equity shares 77.1 91.38 99.36 102.26 92.66 84.57
Preference shares 0 0 0 0 0 0
Mutual funds 502.41 565.63 540.2 480.87 373.33 411.86
Debt instruments 0.42 10.27 30.17 40.11 30.17 58.67
Approved securites (slr/statutory req.) 0 0 0 0 0 0
Assisted companies 0 0 0 0 0 0
Others 1 3.06 1.04 16.86 90.43 88.52
Less: Provision for dimunition in value of
investments 6.65 4.52 4.13 14.81 5.8 6.59

Group companies 0 0 0 0 0 0
Non-group companies 579.93 667.28 669.73 623.24 496.16 555.1

Market value of quoted investments 32.71 67.91 138.32 164.6 150.12 150.25

Deferred tax assets 11.58 7.83 17.6 33.2 48.65 53.88

Current assets
Cash & bank balance 43.76 56.89 49.36 57.47 56.76 57.93
Inventories 369.28 377.58 370.96 444.78 571.22 666.5
Receivables 446.16 403.02 403.23 465.15 566.35 652.84
Expenses paid in advance 18.97 0 9.4 3.48 0 11.82

Loans & advances 4.63 21.32 0.61 3.3 124.49 167.74

Deferred revenue expenditure 0.88 1.45 0 0 0 0

Total assets 1912.35 1997.91 2208.21 2757.37 3476.65 3724.12

Liabilities
Mar Mar Mar Mar Mar Mar
Raymond Ltd. 2003 2004 2005 2006 2007 2008
12 12 12 12 12
Rs. Crore (Non-Annualised) mths mths mths mths mths 12 mths
-
Net worth 1011.57 1110.95 1174.93 1273.77 1435.03 1426.58
Authorised capital 100 100 100 100 100 100
Issued equity capital 61.38 61.38 61.38 61.38 61.38 61.38

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Paid up equity capital (net of forfeited capital) 61.38 61.38 61.38 61.38 61.38 61.38
Forfeited equity capital 0 0 0 0 0 0
Paid up preference capital (net of forfeited capital) 0 0 0 0 0 0
Capital contibution, suspense and application
money 0 0 0 0 0 0

Minority interest reserves 6.21 9.5 12.35 22.34 6.05 6.51

Reserves & surplus 950.19 1049.57 1113.55 1212.39 1373.65 1365.2

Free Reserves 927.15 1025.18 1083.45 1158.84 1301.61 1302.83
Security premium reserves (Net of deductions) 147.79 147.79 147.79 147.79 191.37 191.37
Other free reserves 779.36 877.39 935.66 1011.05 1110.24 1111.46
Specific Reserves 23.04 24.39 30.1 53.55 58.69 48.83
Revaluation Reserves 0 0 0 0 13.35 13.54
Accumulated losses 0 0 0 0 0 0

Total borrowings 518.37 499.81 647.75 952.34 1343.54 1571.68

Bank borrowings 251.1 203.48 418.19 664.61 1004.74 1123.27
Short term bank borrowings 202.13 133.56 148.33 141.77 329.56 359.51
Long term bank borrowings 48.97 69.92 269.86 522.84 675.18 763.76
Financial institutional borrowings 20.64 14.31 0 0 0 0
Central & state govt. (usually sales tax deferrals) 1.96 0.69 0 0 0 0
Debentures / bonds 55 50 50 51 58 20.87
Convertible 0 0 0 0 0 0
Non-convertible 55 50 50 51 58 0
Fixed deposits 15.06 0 0 0 0 0
Foreign borrowings 132.98 218.03 170.54 213.38 223.46 348.98
Of which : euro convertible bonds 0 0 0 0 0 0
Borrowings from corporate bodies 0 0 0 0 41.24 53.03
Group / associate cos. 0 0 0 0 41.24 53.03
Borrowings from promoters / directors 0 0 0 0 0 0
Commercial paper 33 4 0 0 0 0
Hire purchase borrowings 0 0.07 0.11 0.08 0.02 0
Deferred credit 8.57 9.19 8.91 12.62 12.8 11.28
Other borrowings 0.06 0.04 0 10.65 3.28 14.25

Secured borrowings 300.7 248.55 468.3 711.9 1070.52 1114.88

Unsecured borrowings 217.67 251.26 179.45 240.44 273.02 456.8
Current portion of long term debt 0 0 0 0 0 0

Current liabilities & provisions 314.23 311.4 299.78 405.51 576.68 601.11
Sundry creditors 138.99 136.55 147.73 226.76 316.21 330.6
Acceptances 7.24 5.51 4.79 2.83 3.39 5.07
Deposits & advances from customers &
employees 61.39 56.28 58.67 61.83 68.3 73.21
Interest accrued 3.73 3.18 4.96 5.78 5.03 11.7
Share application money 0 0 0 0 0 0
Other current liabilities 27.88 18.84 21.75 33.27 82.16 85.15
Provisions 75 91.04 61.88 75.04 101.59 95.38

Deferred tax liability 61.97 66.25 73.4 103.41 115.35 118.24

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Total liabilities 1912.35 1997.91 2208.21 2757.37 3476.65 3724.12

Net worth (net of reval & DRE) 1010.69 1109.5 1174.93 1273.77 1421.68 1413.04
Contingent liabilities 0 0 0 0 0 0

Profits
Mar Mar Mar Mar Mar Mar
Raymond Ltd. 2003 2004 2005 2006 2007 2008
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
PBDITA 230.12 272.97 189.47 284.87 363.65 251.47
Depreciation 59.53 63.38 63.77 72.71 63.06 81.07
Amortisation 0 0 0 0 0 0

PBIT 170.59 209.59 125.7 212.16 300.59 170.4

Interest paid 34.76 22.04 27.56 49.75 61.49 75.99
Financial charges on instruments 3.88 0.51 0 0 0 0
Fee based financial services expenses 0 0 0 0 0 0

PBT 131.95 187.04 98.14 162.41 239.1 94.41

Provision for direct tax 41.7 54.75 15.01 41.41 36.98 21.99
Corporate tax 36 46.6 17.75 27.5 42.1 7.8
Deferred tax 5.2 7.89 0 10 0 10.15

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 Raymonds Ltd.

Less: Deferred tax assets / credit 0 0 2.99 0 8.15 0

Other direct tax 0.5 0.26 0.25 3.91 3.03 4.04
Fringe benefits tax 0 0 0 3.58 2.75 3.42

PAT 90.25 132.29 83.13 121 202.12 72.42

Prior period & extra-ordinary income 14.05 22.77 10.21 17.18 100.76 22.36
Prior period & extra-ordinary expenses 2.68 8.91 0.64 1.7 4.8 1.51
Net prior period & extraordinary
transactions -11.37 -13.86 -9.57 -15.48 -95.96 -20.85

PBDITA net of P&E 218.75 259.11 179.9 269.39 267.69 230.62

PBIT net of P&E 159.22 195.73 116.13 196.68 204.63 149.55
PBT net of P&E 120.58 173.18 88.57 146.93 143.14 73.56
PAT net of P&E 78.88 118.43 73.56 105.52 106.16 51.57

Distribution of profits (%)

PBDITA 100 100 100 100 100 100
Depreciation & Amortisation 25.869112 23.218669 33.657043 25.523923 17.34085 32.238438
Financial charges 16.791239 8.2609811 14.545838 17.464106 16.909116 30.218316
Tax 18.12098 20.057149 7.9220985 14.536455 10.169119 8.7445819
PAT 39.218669 48.463201 43.87502 42.475515 55.580916 28.798664

Non--provisions 0 0 0 0 0 0
Diminution in investement 0 0 0 0 0 0
Sundry debtors 0 0 0 0 0 0
Loans & advances including NPAs 0 0 0 0 0 0
Loans & advances to group cos. 0 0 0 0 0 0
Interest expenses 0 0 0 0 0 0
Power expenses 0 0 0 0 0 0
Gratuity 0 0 0 0 0 0
Others 0 0 0 0 0 0

Shareholder's funds
Mar Mar Mar Mar Mar Mar
Raymond Ltd. 2003 2004 2005 2006 2007 2008
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
Net worth 954.35 1048.56 1103.93 1189.95 1356.17 1398.29
Authorised equity capital 100 100 100 100 100 100
Issued equity capital 61.38 61.38 61.38 61.38 61.38 61.38
Subscribed equity capital 61.38 61.38 61.38 61.38 61.38 61.38
Paid-up equity capital 61.38 61.38 61.38 61.38 61.38 61.38
Forfeited equity capital 0 0 0 0 0 0
Paid-up preference capital 0 0 0 0 0 0
Capital contibution, suspense & application money 0 0 0 0 0 0
Bonus share capital 42.53 42.53 42.53 42.53 42.53 42.53

Number of shares (in Lakhs)

Authorised equity shares 1000 1000 1000 1000 1000 1000
613.8085 613.808 613.8085 613.8085 613.8085 613.808
Issued equity shares 3 5 3 3 3 5
613.8085 613.808 613.8085 613.8085 613.8085 613.808
Subscribed equity shares (net) 3 5 3 3 3 5
Equity shares alloted without payment being
received in cash 3.5 3.5 3.5 3.5 3.5 3.5

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Call in arrears amount 0 0 0 0 0 0

From directors 0 0 0 0 0 0
From others 0 0 0 0 0 0
Reduction in equity capital 0 0 0 0 0 0
Reduction in equity capital (lakh shares) 0 0 0 0 0 0

Free reserves 875.51 968.47 1021.34 1102.11 1266.58 1323.2

Security premium reserves (net of deductions) 147.78 147.79 147.79 147.79 147.79 147.79
Other reserves 0 0 0 0 0 0
General reserves 697.98 759.23 767.54 787.15 839.9 848.66
Balance from profit & loss account 29.75 61.45 106.01 167.17 278.89 326.75

Specific reserves 17.46 18.71 21.21 26.46 28.21 13.71

Capital, debt, investment & other reserves 17.46 18.71 21.21 26.46 28.21 13.71
Debenture/bond redemption reserves 3.75 5 7.5 12.75 14.5 0
Foreign project reserves 0 0 0 0 0 0
Investment fluctuation reserve 0 0 0 0 0 0
Employee stock option reserve 0 0 0 0 0 0

Revaluation reserves 0 0 0 0 0 0

Accumulated losses 0 0 0 0 0 0
Revenue expenses directly charged to reserves 0 0 0 0 0 0

TOOLS OF ANALYSIS

RATIO ANALYSIS:

INTRODUCTION

Analysis and interpretation financial statements with the help of ratios are
termed as ‘Ratio Analysis’. Ratio analysis involves the process of computing,
determining, and presenting the relationship of items or groups of financial
statements.

MEANING OF RATIO

1. A Ratio is a mathematical relationship between two items expressed in a

quantitative form.

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 Raymonds Ltd.

2. Ratios can be defined as “relationships expressed in quantitative terms,

between figures which have cause and effect relationships or which are
connected with each other in some, manner or the other.”

3. Arithmetically ratio is a comparison of the numerator with the denominator.

Accounting ratios are designed to show how one number is related to another and the
meaning of such relationship ratios is worked out by dividing one number by another
number. Accounting ratios measure and indicates efficiency of an enterprise in all
aspects.

CLASSIFICATION OF RATIOS

Ratio analysis was pioneered by Alexander. Interpretation of financial

statements can be made easier by establishing quantitative relationships between
various items of financial statements.

Accounting ratios may be classified as:

✔ Liquidity Ratios
✔ Solvency Ratios
✔ Turnover Ratios
✔ Profitability Ratios

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SOLVENCY / LIQUIDITYRATIOS:
FINANCIAL RATIOS ARE CALCULATED ON THE BASIS OF ITEMS OF THE “BALANCE SHEET”.
1)SHORT TERM SOLVENCY RATIOS:
(a) CURRENT RATIO(CR):
The ratio of current assets to current liabilities is called “current ratio”. The
term current assets includes debtors,stock,bills ,receivables, bank and cash balances,
prepaid expenses, income due and short term investments.
The term current liabilities includes creditors, bank overdraft, bills payable, out
standing expenses, income received in advance,etc.Standard expected current ratio:
internationally accepted current ratio is 2:1i.e. Current assets shall be 2times to
current liabilities.

Current assets
CURRENT RATIO= ------------------
Current liabilities
Years C.A C.L RATIO(2:1
)
2003 650.03 268.27 2.42
2004 619.99 262.26 2.36
2005 `587.59 246.26 2.38

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2006 672.68 318.7 2.11

2007 673.32 353.81 1.90
2008 765.97 342.76 2.23
SOURCE: completed from the annual reports of “Raymonds Ltd.”

CURRENT RATIO

2.5 2.42 2.36 2.38

2.23
2.11
2 1.9
RATIOS

1.5

0.5

0
2003 2004 2005 2006 2007 2008
YEARS

INTERPRETATION:
From the above table it is observed that the current ratio is fluctuating it is
gradually decreased during year 2004,2006 and 2007 as current liabilities are
increased and finally increased during year 2008 due to decrease of current liabilities.

(b)QUICK RATIO(QR):
This ratio is called “LIQUID” or” ACID TEST” RATIO. It is calculated by
comparing the quick assets with current liabilities. Quick or liquid assets refer to
assets which are quickly convertible into cash. Current assets other than stock and
prepaid expenses are considered as quick assets.
the ideal liquid ratio or the generally accepted “norm” for liquid ratio is”1”.

Quick assets
QUICK RATIO = --------------------
Current liabilities

Years Q.A’S C.L’S RATIO(2:1)

2003 357.67 268.27 1.33
2004 325.09 262.26 1.23
2005 291.65 246.26 1.18
2006 350.17 318.7 1.09
2007 389.65 353.81 1.10

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2008 428.07 342.76 13.06

SOURCE: completed from the annual reports of “Raymonds Ltd.”

Q UICK RATIO

14 13.06
12
10
8
RATIO

6
4
2 1.33 1.23 1.18 1.09 1.1
0
2003 2004 2005 2006 2007 2008
YEA RS

INTERPRETATION:
From the above table it is observed that the quick ratio is showing a gradual
decrease during years 2003 – 2007 as there is an decrease in quick assets and finally
increased in 2008 as there is an increase in quick assets and decrease in current
liabilities.
(c) ABSOLUTE QUICK RATIO (AQR):

Absolute assets are cash, bank balance &marketable securities. This ratio
reveals the relationship between absolute quick assets and quick liability

Absolute liquid assets

Absolute quick ratio =--------------------------------------
Current liability

Years A.l.A’S C.L’S Ratio

2003 76.89 268.27 0.26
2004 135.07 262.26 0.51
2005 217.85 246.26 0.88
2006 262.18 318.7 0.82
2007 237.05 353.81 0.66
2008 266.85 342.76 0.77
SOURCE: completed from the annual reports of “Raymonds Ltd.”

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Absolute Quick Ratio

0.88
0.9 0.82
0.8 0.77
0.7 0.66
0.6 0.51
0.5
Ratio
0.4
0.3 0.26
0.2
0.1
0
2003 2004 2005 2006 2007 2008
Years

INTERPRETATION:

From the above table it is observed that the Absolute Quick ratio increased year after
year from the period of 2003-05 because of the components like Cash & Bank balance
is increased, but decreased during 2006-07 because of the components like Cash and
Bank balance is low. Finally it is increased during 2008.

LONG TERM SOLVENCY RATIOS

(d)DEBT-EQUITY RATIO(DER):
This ratio is ascertained to determine long term solvency position of a company. Debt
equity ratio is called “external-internal equity ratio”.
The ideal ratio is “1”.

Total long term debt

DEBT-EQUITY RATIO = --------------------------
Equity (net worth)
Years Debt Equity RATIO
2003 316.24 1011.57 0.31
2004 366.25 1110.95 0.32
2005 499.42 1174.93 0.42
2006 810.57 1273.77 0.63
2007 1013.98 1435.03 0.70
2008 1212.17 1426.58 0.84

SOURCE: completed from the annual reports of “Raymonds Ltd.”

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 Raymonds Ltd.

DEBT-EQ UITY RATIO

0.9 0.84
0.8
0.7
0.7 0.63
RATIOS 0.6
0.5 0.42
0.4 0.31 0.32
0.3
0.2
0.1
0
2003 2004 2005 2006 2007 2008
YEARS

INTERPRETATION:

From the above table it is observed that the debt-equity ratio is gradually
increased during 2003-2008 due to having high equity every year.

PROFITABILITY RATIO:

EARNING PER SHARE (EPS):

This ratio is calculated to measure the profit yielding per equity share. It means
how much amount return per equity share.

PAT
EARNING PER SHARE =------------------
-----------------------
NO.OF EQUITY SHARE

Years P A T (Rs NO OF RATIO

in crores) SHARE
2003 90.25 613.80 0.14
2004 132.29 613.80 0.21
2005 83.13 613.80 0.13
2006 121 613.80 0.19
2007 202.12 613.80 0.32

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 Raymonds Ltd.

2008 72.42 613.80 0.11

SOURCE: Compiled from the annual reports of “Raymonds Ltd

EPS

0.35 0.32
0.3
0.25
0.21
RATIOS

0.2 0.19

0.15 0.14 0.13

0.11
0.1
0.05
0
2003 2004 2005 2006 2007 2008
YEARS

INTERPRETATION:

From the above table it is observed that during 2003-2008 the EPS is showing
fluctuating. It is having increase in 2004 due to more PAT and decrease in 2005 due
to less PAT. Finally decreased in 2008 due to less PAT.

NET PROFIT RATIO(NPR):

This ratio is called net profit to sales ratio. It is a measure of management’s
efficiency in operating the business successfully from the owner’s point of view.Net
profit includes non operating incomes and profits.

Net profit after tax

NET PROFIT RATIO= --------------------------*100
Net sales

Years PAT Net sales RATIO

2003 90.25 1035.27 8.71
2004 132.29 1112.35 11.89
2005 83.13 1181.48 7.03
2006 121 1375.47 8.79
2007 202.12 1342.84 15.65

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 Raymonds Ltd.

2008 72.42 1380.42 5.24

SOURCE: Compiled from the annual reports of “Raymonds Ltd.”

NET PROFIT RATIO

16 15.65
14
11.89
12
10 8.71 8.79
RATIO

8 7.03
6 5.24
4
2
0
2003 2004 2005 2006 2007 2008
YEARS

INTERPRETATION:
From the above table it is observed that Net profit ratio during 2003-08 is
showing fluctuations, it has high increase in 2003.04,06 and 07 due to more net sales
and finally decreased due to low profit.
GROSS PROFIT RATIO(GPR):
This ratio is also known as gross margin or trading margin ratio. Gross profit
ratio indicates the difference between sales and direct costs. Gross profit ratio
explains the relationship between gross profit and net sales.
Gross profit
GROSS PROFIT RATIO =----------------------------*100
Net sales

Years Gross profit Net sales Ratio

2003 230.12 1035.27 22.22
2004 272.97 1112.35 24.53
2005 189.47 1181.48 16.03
2006 284.87 1375.45 20.07
2007 363.65 1342.84 27.08
2008 251.47 1380.42 18.2
SOURCE: completed from the annual reports of “Raymonds Ltd.”

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 Raymonds Ltd.

Gross Profit Ratio

30 27.08
24.53
25 22.22
20.07
20 18.2
Ratios 16.03
15

10

0
2003 2004 2005 2006 2007 2008
Ye a rs

INTERPRETATION:

From the above table & chart it is observed that the Gross profit ratio is
showing fluctuations, it has increased during year 2003,2004,2006&2007 due to high
sales & decreased during 2005 and 2008 due to low sales and PBDIT.

RETURN ON INVESTMENT (ROI):

This ratio is called “overall profitability ratio” or “Return on capital
employed”. It measures the sufficiency or otherwise of profit in relation in capital
employed.
Operating profit
ROI =------------------------------------ *100
Capital employed

Years Operating profit Capital employed Ratio

2003 90.25 612.37 14.7
2004 132.29 715.87 18.4
2005 83.13 734.27 11.3
2006 121 736.6 16.4
2007 202.12 984.47 20.5
2008 72.42 1047.3 6.91
SOURCE: completed from the annual reports of “Raymonds Ltd.”

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 Raymonds Ltd.

Return On Investment Ratio

25
20.5
20 18.4
16.4
14.7
15
Ratios
11.3
10
6.91
5

0
2003 2004 2005 2006 2007 2008
Years

INTERPRETATION:

From the above table & chart it is observed that the Return on investment ratio
is showing fluctuations .In 2003&2004 it is high due to both PAT & total investment
are more it decreased in 2005 due to low PAT & increased in 2006 -07 due to more
PAT & finally decreased in 2008 of low PAT.

Table showing PAT of Raymonds Ltd. during the year 2003-2008.

Year PAT Growth rate (%)

(Rs. In crores)
2003 90.25 12.87
2004 132.29 18.86
2005 83.13 11.8
2006 121 17.2
2007 202.12 28.8
2008 72.42 10.32
Total 701.21
Avg = 116.86

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 Raymonds Ltd.

PAT Grow th rate (% )

30 28.8

25

20 18.86
17.2
Ratios

15 12.87 11.8
10.32
10

0
2003 2004 2005 2006 2007 2008
Ye a rs

INTERPRETATION:
From the above table it is observed that during year 2007
the PAT of Raymonds Ltd. Is maximum (Rs.202.12crores) and during 2008 it is
minimum (Rs.72.42crores). Hence it is observed that there are fluctuations in PAT.
Finally, it is concluded that average PAT of Raymonds Ltd. is Rs116.86crores.

Table showing Total Income of Raymonds Ltd. during the year 2003-
2008.

Year PAT Growth rate (%)

(Rs. In crores)
2003 1123.49 13.6
2004 1268.68 15.4
2005 1272.45 15.5
2006 1467.88 17.89
2007 1527.76 18.62
2008 1543.36 18.81
Total 8203.62
Avg. = 1367.27

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 Raymonds Ltd.

Total IncomeGrow th rate (% )

20 18.62 18.81
17.89
18
16 15.4 15.5
13.6
14
12
Ratios

10
8
6
4
2
0
2003 2004 2005 2006 2007 2008
Ye a rs

INTERPRETATION:
From the above table it is observed that during year 2008 the total income of
Raymonds Ltd. is maximum (Rs.1543.36 crores) and during 2003 it is minimum
(Rs.1123.49 crores). Hence it is observed that total income is increased gradually at 1
%. Finally, it is concluded that average income of Raymonds Ltd. Is Rs.1367.27
crores.

Table showing Sales of Raymonds Ltd. during the year 2003-2008.

Year PAT Growth rate (%)

(Rs. In crores)
2003 1035.27 13.9
2004 1112.35 14.9
2005 1181.48 15.9
2006 1375.47 18.5
2007 1342.84 18.08
2008 1380.42 18.58
Total 7427.83
Avg = 1237.89

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 Raymonds Ltd.

Sales Growth rate (% )

20 18.5 18.08 18.58

18 15.9
16 14.9
13.9
14
12
Ratios

10
8
6
4
2
0
2003 2004 2005 2006 2007 2008
Years

INTERPRETATION:

From the above table it is observed that during year 2008 the total salesof
Raymonds Ltd. is maximum (Rs.1380.42crores) and during 2003 it is minimum
(Rs.1035.27crores). Hence it is observed that total sales is increased gradually at
1.5%. Finally, it is concluded that average sales of Raymonds Ltd. Is Rs.1237.89
crores.

Table showing PBT of Raymonds Ltd. during the year 2003-2008.

Year PAT Growth rate (%)

(Rs. In crores)
2003 131.95 14.4
2004 187.04 20.4
2005 98.14 10.7
2006 162.41 17.7
2007 239.1 26.1
2008 94.41 10.3
Total 913.05
Avg = 152.175

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 Raymonds Ltd.

PBT Growth rate (% )

30

25

20
Ratios

15

10
5

0
2003 2004 2005 2006 2007 2008
Years

INTERPRETATION:
From the above table it is observed that during year 2007 the PBT of
Raymonds Ltd. Is maximum (Rs.239.41crores) and during 2008 it is minimum
(Rs.94.41crores). Hence it is observed that there are fluctuations in PBT.
Finally, it is concluded that average PBT of Raymonds Ltd. is Rs152.175crores.

Table showing Total Borrowings of Raymonds Ltd. during the year

2003-2008.

Year PAT Growth rate (%)

(Rs. In crores)
2003 483.7 11.9
2004 478.35 11.8
2005 577.63 14.2
2006 779.13 19.2
2007 805.29 19.8
2008 923.13 22.8
Total 4047.23
Avg = 674.53

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 Raymonds Ltd.

Total Borrowings Growth rate (% )

25 22.8
19.2 19.8
20

15 14.2
Ratios
11.9 11.8
10

0
2003 2004 2005 2006 2007 2008
Years

INTERPRETATION:
From the above table it is observed that during year 2008
the total borrowings of Raymonds Ltd. is maximum (Rs.923.13crores) and during
2003 it is minimum (Rs.483.7crores). Hence it is observed that total borrowings is
increased gradually at 2 %. Finally, it is concluded that average borrowing rate of
Raymonds Ltd. Is Rs.674.53 crores.

Table showing Total Assets of Raymonds Ltd. during the year 2003-
2008.

Year PAT Growth rate (%)

(Rs. In crores)
2003 1765.79 13.25
2004 1852.56 13.90
2005 1995.47 14.97
2006 2371.42 17.80
2007 2590.06 19.44
2008 2745.95 20.6
Total 13321.25
Avg = 2220.08

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 Raymonds Ltd.

Total Assets Growth rate (% )

25
20.6
19.44
20 17.8
14.97
15 13.25 13.9
Ratios
10

0
2003 2004 2005 2006 2007 2008
Years

INTERPRETATION:
From the above table it is observed that during year 2008 the total assetsof
Raymonds Ltd. is maximum (Rs.2745.95crores) and during 2003 it is minimum
(Rs.1765.79crores). Hence it is observed that total assets is increased gradually at 1.
%. Finally, it is concluded that average assets of Raymonds Ltd. is Rs.2220.28 crores.

Table showing Inventories of Raymonds Ltd. during the year 2003-

2008.

Year PAT Growth rate (%)

(Rs. In crores)
2003 277.35 15.47
2004 294.9 16.45
2005 287.56 16.04
2006 319.04 17.80
2007 283.67 15.82
2008 329.74 18.39
Total 1792.26

Avg = 298.71

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 Raymonds Ltd.

Inventories Growth rate (%)

18.5 18.39
18 17.8
17.5
17
Ratios 16.45
16.5 16.04
16 15.82
15.47
15.5
15
14.5
14
2003 2004 2005 2006 2007 2008
Years

INTERPRETATION:

From the above table it is observed that during year 2008 the total inventories
of Raymonds Ltd. is maximum (Rs.329.74crores) and during 2003 it is minimum
(Rs.277.35crores). Hence it is observed that total inventories is increased gradually at
2 %. Finally, it is concluded that average inventories of Raymonds Ltd. Is Rs.298.71
crores.

FINDINGS

 The current ratio is fluctuating it is gradually decreased during year

2004,2006&2007 as current liabilities are increased and finally increased
during year 2008 due to decrease of current liabilities.

 The quick ratio is showing a gradual decrease during years 2003 – 2007 as
there is an decrease in quick assets and finally increased in 2008 as there is an
increase in quick assets and decrease in current liabilities.

 Absolute Quick ratio increased year after year from the period of 2003-05
because of the components like Cash & Bank balance is increased,but
decreased during 2006-07 because of the components like Cash and Bank
balance is low.Finally it is increased during 2008.

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 Raymonds Ltd.

 Debt-equity ratio is gradually increased during 2003-2008 due to having high

equity every year.

 The EPS is showing fluctuating. It is having increase in 2004 due to more

PAT and decrease in 2005 due to less PAT. Finally decreased in 2008 due to
less PAT.

 Net profit ratio during 2003-08 is showing fluctuations , it has high increase in
2003.04,06&07 due to more net sales and finally decreased due to low profit.

 Gross profit ratio is showing fluctuations, it has increased during year

2003,2004,2006 and 2007 due to high sales and decreased during 2005 and
2008 due to low sales and PBDIT.

 Return on investment ratio is showing fluctuations .In 2003&2004 it is high

due to both PAT & total investment are more it decreased in 2005 due to low
PAT & increased in 2006 -07 due to more PAT and finally decreased in 2008
of low PAT.

 During year 2007 the PAT of Raymonds Ltd. Is maximum (Rs.202.12crores)

and during 2008 it is minimum (Rs.72.42crores). Hence it is observed that
there are fluctuations in PAT.Finally, it is concluded that average PAT of
Raymonds Ltd. is Rs116.86crores.

 During year 2008 the total income of Raymonds Ltd. is maximum (Rs.1543.36
crores) and during 2003 it is minimum (Rs.1123.49 crores). Hence it is
observed that total income is increased gradually at 1 %. Finally, it is
concluded that average income of Raymonds Ltd. Is Rs.1367.27 crores.

 During year 2008 the total salesof Raymonds Ltd. is maximum

(Rs.1380.42crores) and during 2003 it is minimum (Rs.1035.27crores). Hence
it is observed that total sales is increased gradually at 1.5 %. Finally, it is
concluded that average sales of Raymonds Ltd. Is Rs.1237.89 crores.

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 Raymonds Ltd.

 During 2008 it is minimum (Rs.94.41crores). Hence it is observed that there

are fluctuations in PBT.Finally, it is concluded that average PBT of Raymonds
Ltd. is Rs152.175crores.

 During 2003 it is minimum (Rs.483.7crores). Hence it is observed that total

borrowings is increased gradually at 2 %. Finally, it is concluded that average
borrowing rate of Raymonds Ltd. Is Rs.674.53 crores.

 During 2003 it is minimum (Rs.1765.79crores). Hence it is observed that total

assets is increased gradually at 1. %. Finally, it is concluded that average
assets of Raymonds Ltd. is Rs.2220.28 crores.

 During 2003 it is minimum (Rs.277.35crores). Hence it is observed that total

inventories is increased gradually at 2 %. Finally, it is concluded that average
inventories of Raymonds Ltd. Is Rs.298.71 crores.

CONCLUSION:

This study mainly focuses on profitability, liquidity and growth

rates of “Raymonds Ltd”. By observing all this ratios it is concluded
that Raymonds Ltd. will become very good position in future if the
company concentrates on the growth rates of the company. Thus this
study concluded is having good position in terms of profitability, liquidity
and growth.

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 Raymonds Ltd.

33
APGCMS, Rajampet