Raymond Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying Standalone financial statements of Raymond Limited (“the Company”), which comprise the Balance Sheet as at 31st March, 2026, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and the notes to the Standalone financial statements including a summary of material accounting policies and other explanatory information (hereinafter referred to as “ financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2026, and net loss related to continue operation & net profit related to discontinue operation, other comprehensive income- loss and other financial information for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on Standalone Financial Statements.
We draw attention to Note 36(b) to the accompanying Statement which describes that pursuant to the scheme of arrangement (the 'Scheme') between the Company ('Demerged Company'), Raymond Realty Limited ('Resulting Company') and their respective shareholders, as approved by the Hon'ble National Company Law Tribunal, Mumbai Bench and filed with respective Registrar of Companies, the Real Estate Business Undertaking of the Company has been demerged and transferred to Resulting Company with effect from 01 May 2025. The Demerged Company has accordingly debited the fair value of real estate business undertaking amounting to H 6,64,136 lakhs to retained earnings as dividend distribution attributable to each of the shareholders of Demerged Company. The difference between the aforementioned fair value and the carrying amount of net assets of H 1,31,491 lakhs of real estate business undertaking as at 01 May 2025 is recognised as gain on demerger in the standalone statement of profit and loss as an exceptional item amounting to H 5,32,645 lakhs. Further, upon the scheme becoming effective, the investment made by the Demerged Company in the Resulting Company stands cancelled. Our opinion is not modified in respect of this matter.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone financial statements of the current year. These matters were addressed in the context of our audit of the Standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter described below to be the key audit matters to be communicated in our report.
Key Audit matter
Auditors’ response
Impairment testing of investment in and other receivables from a joint venture
Refer note 1(b)(D)(x) for Company’s material accounting policy information on impairment. Also refer notes 5, 14 and 15 for details of investment and other receivables from Raymond
Our audit procedures included, but not limited to the following:
• Obtained an understanding of management’s process, evaluated design and tested the operating effectiveness of controls around impairment and recoverability assessment as per Ind AS 36 and Ind AS 109;
UCO Denim Private Limited (the ‘joint venture’/‘Raymond
•
Evaluated the Company’s accounting policies with respect
UCO’), including its credit risk assessment, in the
to impairment/ credit risk assessment and assessed its
accompanying standalone financial statements.
compliance with the requirements of Ind AS 36 and Ind AS 109;
As at 31 March 2026, the carrying amount of investment in
Obtained and reviewed valuation report as prepared by
Raymond UCO is H 14,956 lakhs (net of provision for diminution
management experts for determination of recoverable value
in the value of investment of H 20,950 lakhs).
of investment in the joint venture and also assessed the
Further, as at such date, the Company has loans, interest
appropriateness of methodology, valuation model and key
and other receivables aggregating H 3,422 lakhs from the joint
assumptions used by the management experts;
venture.
Assessed the professional competence, objectivity and
In accordance with the requirements of Ind AS 36
capabilities of management valuation specialist;
“Impairment of Assets” (‘Ind AS 36’) and Ind AS 109 “Financial
Performed inquiries and evaluated whether management’s
instruments” (‘Ind AS 109’), management has assessed that
assumptions such as future cash flows, growth rates,
the losses suffered by the joint venture over the years indicate
discount rates, terminal growth rate etc., as used in cash
impairment in the carrying values of the aforementioned
flow projections are reasonable by understanding the
balances. Accordingly, the management has performed
historical performance, approved business plans for the
impairment assessment and has estimated the recoverable
joint venture and our understanding of the business and
amount of its investment and other receivables in the joint
comparable companies;
venture using, inter alia, ‘Discounted Cash Flow valuation
Considering the inherent subjectivity involved in the future
model’, which is inherently complex and involves the use of
cash flow projections, we assessed the valuation of the joint
significant management estimates and assumptions such as,
venture independently based on assumptions relating to
projections of future cash flows, growth rates, discount rates,
revenue growth rate noted for comparable companies with
terminal growth rate, expected future market and economic
the help of auditor’s valuation specialists and performed
conditions etc.
sensitivity analysis; and
Considering the materiality of the carrying value of
Ensured the appropriateness and adequacy of presentation
aforementioned balances, significant management judgement
and disclosures as enumerated in Ind AS.
required in estimating the quantum of impairment in the value of these balances and such estimates and judgements being inherently subjective, and this matter requiring frequent discussions with those charged with governance, we have identified this as a key audit matter for the current year audit.
Fair Valuation of Investment
• As at March 31, 2026, the Company has investments of
Reviewed the fair valuation reports provided by the
H 1,27,261 lakhs. (Refer Note 5, 5(a) and Note 10 of the
management by involvement of external valuation experts
Standalone financial statement), which represent that
for investment in unlisted entities and for investment in
substantial portion of investment in the Subsidiaries
subsidiary companies through market value of underlying
& associate/Joint venture company being carried at
assets of those companies. In case of investment in
cost in accordance with Ind AS 27 “Separate Financial
Mutual fund, verified through closing NAV, as per the
Statements” and other quoted /unquoted investments &
statement issued.
mutual funds which are fair valued through profit/loss or
Review of DMAT statement
other comprehensive income in accordance with Ind AS
Reviewed management’s assessment in case of investment in
109 read with Ind AS 113.
• Out of the above, few investments are in quoted/unquoted
subsidiary companies for no impairment indicators noted for the investments held by the Company as at 31st March, 2026.
equity shares and debentures which are classified as Level
Evaluated the adequacy of disclosure given in the standalone
3 investments as per the fair value hierarchy in Ind AS 113
and accordingly determination of fair value is based on a
financial statements in accordance with applicable
accounting standards.
high degree of judgement and input from data that is not directly observable in the market.
• Further, the fair value is significantly influenced by the expected pattern of future benefits of the tangible assets of Subsidiary & Associate Companies. Accordingly, the same has been considered as a key audit matter.
The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Board of Director's report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholder’s Information, but does not include the Standalone financial statements and our auditor’s report thereon.
Our opinion on the Standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material of this other information, we are required to report that fact. We have nothing to report in this regard.
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India including the Indian Accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the Standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Standalone financial statements, including the disclosures, and whether the Standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. Further to our comments in Annexure A, as required by Section 143(3) of the Act, based on our report we report, to the extent applicable, that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d. In our opinion, the aforesaid Standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules 2015, as amended from time to time.
e. On the basis of the written representations received from the directors as on 31st March, 2026 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2026 from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls with reference to Standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the internal control with reference to the Standalone Financial Statements of the Company; and
g. In our opinion and to the best of our information and according to the explanations given to us, the company has not paid any managerial remuneration to its directors during the year and accordingly reporting in accordance with the provisions of section 197 read with Schedule V of the Act is not required.
h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note 32 to the Standalone financial statements.
ii. The Company has no long-term contracts including derivative contracts as at 31st March, 2026.
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2026.
iv. (a) The Management has represented
that, to the best of their knowledge and belief, as disclosed in the notes to the financial statements no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented that, to the best of their knowledge and belief, as disclosed in the notes to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. No dividend has been declared or paid during the year by the Company.
vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of accounts for the financial year ended March 31, 2026 which has feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that, audit trail was not enabled at database level for the accounting software used for maintaining books of accounts, as described in Note 45 to the standalone financial statements. Further, during the course of our audit we did not come across any instance of the audit trial feature being tampered with and the audit trail has been preserved by the Company as per the statutory requirements for record retention.
vii. The financial results also include financial amounts of the Company for the quarter and year ended March 31, 2025, audited by the predecessor auditor vide their reports dated May 12, 2025, in which the predecessor auditor has expressed unmodified opinion. Our opinion on the standalone financial statements is not modified in respect of this matter.
For Chaturvedi & Shah LLP
Chartered Accountants (Firm’s Registration No. 101720W/W100355)
Lalit R. Mhalsekar
Partner
Membership No. 103418 UDIN: 26103418XYWDCU5090
Mumbai, 05th May, 2026