(q) Provisions and contingent liabilities

Provisions are recognised when the Company has
a present legal or constructive obligation as a result
of past events, it is probable that an outflow of
resources will be required to settle the obligation and
the amount can be reliably estimated. Provisions are
not recognised for future operating losses.

Provisions are measured at the present value of
management’s best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability.
The increase in the provision due to the passage of
time is recognised as interest expense.

Contingent Liabilities are disclosed in respect of
possible obligations that arise from past events but
their existence will be confirmed by the occurrence
or non occurrence of one or more uncertain future
events not wholly within the control of the Company
or where any present obligation cannot be measured
in terms of future outflow of resources or where a
reliable estimate of the obligation cannot be made.

(r) Revenue recognition

The Company derives revenues primarily from sale
of manufactured goods, traded goods and related
services.

Revenue is recognized on satisfaction of
performance obligation upon transfer of control of
promised products or services to customers in an
amount that reflects the consideration the Company
expects to receive in exchange for those products or
services.

Revenue is measured based on the transaction price
(which is the consideration, adjusted to discounts,
incentives and returns, etc., if any) that is allocated
to that performance obligation. These are generally
accounted for as variable consideration estimated
in the same period the related sales occur. The
methodology and assumptions used to estimate
rebates and returns are monitored and adjusted
regularly in the light of contractual and legal
obligations, historical trends, past experience and
projected market conditions.

The Company operates a loyalty programme for the
customers and franchisees for the sale of goods. The
customers accumulate points for purchases made
which entitles them to discount on future purchases.
A contract liability for the award points is recognized
at the time of the sale. Revenue is recognized when
the points are redeemed or on expiry. The expenditure
of loyalty programme is netted-off to revenue.

The Company does not expect to have any
contracts where the period between the transfer
of the promised goods or services to the customer
and payment by the customer exceeds one year.
As a consequence, it does not adjust any of the
transaction prices for the time value of money.

Revenue from sale of products and services are
recognised at the time of satisfaction of performance
obligation .In determining whether an entity has right
to payment, the entity shall consider whether it
would have an enforceable right to demand or retain
payment for performance completed to date if the
contract were to be terminated before completion
for reasons other than entity’s failure to perform as
per the terms of the contract.

Other operating revenue - Export incentives

Export Incentives under various schemes are
accounted in the year of export.

Trade receivables

Trade receivables are amounts due from customers
for goods sold or services performed in the ordinary
course of business and reflects company’s
unconditional right to consideration (that is, payment
is due only on the passage of time). Trade receivables
of the Company, are recognised initially at the
transaction price as they do not contain significant
financing components. The company holds the
trade receivables with the objective of collecting
the contractual cash flows and therefore measures
them subsequently at amortised cost using the
effective interest method, less loss allowance.

(s) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service are recognised in
respect of employees’ services up to the end
of the reporting period and are measured at
the amounts expected to be paid when the
liabilities are settled.

(ii) Other long-term employee benefit
obligations

The liabilities for earned leave and sick leave
that are not expected to be settled wholly
within 12 months are measured as the
present value of expected future payments
to be made in respect of services provided
by employees up to the end of the reporting
period using the projected unit credit method.
The benefits are discounted using the discount
rates for Government Securities (G-Sec) at the
end of the reporting period that have terms
approximating to the terms of the related
obligation. Remeasurement as a result of
experience adjustments and changes in
actuarial assumptions are recognised in the
Statement of Profit and Loss.

(iii) Post-employment obligations

The Company operates the following post¬
employment schemes:

(a) defined benefit plans such as gratuity,
provident fund and pension; and

(b) defined contribution plans

Pension and gratuity obligations

The liability or asset recognised in the balance sheet
in respect of defined benefit pension and gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries using
the projected unit credit method.

The present value of the defined benefit obligation
is determined by discounting the estimated future
cash outflows by reference to market yields at the
end of the reporting period on government bonds
that have terms approximating to the terms of the
related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense in
the Statement of Profit and Loss.

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in which
they occur, directly in other comprehensive income.
They are included in retained earnings in the
statement of changes in equity and in the balance
sheet.

Provident fund

Defined Contribution Plans such as Provident Fund
etc., are charged to the Statement of Profit and Loss
as incurred.

In accordance with the Employees’ Provident Fund
and Miscellaneous Provision Act, 1952, for certain
eligible employees of the Company are entitled
to receive benefits under the provident fund plan
in which both the employee and employer (at a
determined rate) contribute monthly to “Raymond
Limited Employee’s Provident Fund Trust”, a Trust
set up by the Company to manage the investments
and distribute the amounts to employees at the
time of separation from the Company or retirement,
whichever is earlier. This plan is a defined obligation
plan as the Company is obligated to provide
its members a rate of return which should, at
a minimum, meet the interest rate declared by
government administered provident fund. A part
of the Company’s contribution is transferred to
government-administered pension fund. The
contributions made by the Company and the shortfall
of interest, if any, are recognised as an expense in the
profit or loss under “Employee benefits expense”
Termination benefits

Termination benefits are payable when employment
is terminated by the Company before the normal
retirement date, or when an employee accepts
voluntary redundancy in exchange for these benefits.
The Company recognises termination benefits at the
earlier of the following dates: (a) when the Company
can no longer withdraw the offer of those benefits;
and (b) when the Company recognises costs for a
restructuring that is within the scope of Ind AS 37
and involves the payment of terminations benefits.
In the case of an offer made to encourage voluntary
redundancy, the termination benefits are measured
based on the number of employees expected to
accept the offer. Benefits falling due more than 12
months after the end of the reporting period are
discounted to present value.

(iv) Share based payments

Share-based compensation benefits are provided
to employees via the “Raymond Employee Stock
Option Plan 2023” (ESOP scheme). The fair value
of options granted under the ESOP scheme is
recognised as an employee benefits expense with a
corresponding increase in equity. The total amount
to be expensed is determined by reference to the fair
value of the options granted:

• including any market performance conditions
(e.g., the entity’s share price)

• excluding the impact of any service and non¬
market performance vesting conditions (e.g.
profitability, sales growth targets and remaining
an employee of the entity over a specified time
period), and

• including the impact of any non-vesting
conditions (e.g. the requirement for employees
to serve or hold shares for a specific period of
time).

The total expense is recognised over the vesting
period, which is the period over which all of the
specified vesting conditions are to be satisfied.

(t) Foreign currency translation

(i) Functional and presentation currency

The financial statements are presented in
Indian rupee (INR), which is Company’s
functional and presentation currency.

(ii) Transactions and balances

Transactions in foreign currencies are
recognised at the prevailing exchange rates
on the transaction dates. Realised gains and
losses on settlement of foreign currency
transactions are recognised in the Statement
of Profit and Loss.

Monetary foreign currency assets and liabilities
at the year-end are translated at the year-end
exchange rates and the resultant exchange
differences are recognised in the Statement of
Profit and Loss.

Non-monetary assets and liabilities that are
measured in terms of historical cost in foreign
currencies are not translated thereafter.

(u) Income tax

The income tax expense or credit for the period is the
tax payable on the current period’s taxable income
based on the applicable income tax rate adjusted
by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused
tax losses.

There are many transactions and calculations for
which the ultimate tax determination is uncertain.
The Company recognises liabilities for anticipated
tax issues based on estimates of whether additional
taxes will be due. The uncertain tax positions are
measured at the amount expected to be paid to
taxation authorities when the Company determines
that the probable outflow of economic resources will
occur. Where the final tax outcome of these matters
is different from the amounts that were initially
recorded, such differences will impact the current
and deferred income tax assets and liabilities in the
period in which such determination is made.

Deferred income tax is provided in full, using the
liability method on temporary differences arising
between the tax bases of assets and liabilities and
their carrying amount in the financial statement.

Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially
enacted by the end of the reporting period and are
excepted to apply when the related deferred income
tax asset is realised or the deferred income tax
liability is settled.

Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses, only
if, it is probable that future taxable amounts will be
available to utilise those temporary differences and
losses.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred
tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are off set where
the Company has a legally enforceable right to offset
and intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the
Statement of Profit and Loss, except to the extent that
it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is
also recognised in other comprehensive income or
directly in equity, respectively.

(v) Earnings Per Share
Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit/loss attributable to owners of the
Company

- by the weighted average number of equity
shares outstanding during the financial year,
adjusted for bonus elements in equity shares
issued during the year and excluding treasury
shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in
the determination of basic earnings per share to take
into account:

- the after income tax effect of interest and
other financing costs associated with dilutive
potential equity shares, and

- the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

(w) Government Grants

Grants from the government are recognised at their
fair value where there is reasonable assurance that
the grant will be received and the Company will
comply with all attached conditions.

Government grants relating to the purchase of
property, plant and equipment are included in
non-current liabilities as deferred income and are
credited to the statement of Profit and Loss on a

straight - line basis over the expected lives of related
assets and presented within other income.

(x) Manufacturing and Operating Expenses and
Costs towards development of property

The Company discloses separately manufacturing
and operating expenses and costs towards
development of property which are directly linked to
respective activities, as a part of 'Other expenses’.

(y) Exceptional items

When items of income and expense within
statement of profit and loss from ordinary activities
are of such size, nature or incidence that their
disclosure is relevant to explain the performance of
the enterprise for the period, the nature and amount
of such material items are disclosed separately as
exceptional items.

(z) Recent Pronouncements

The 'Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. For
the year ended 31st March 2025, MCA has notified
amendments to Ind AS 116 - Leases, relating to sale
and leaseback transactions, which is applicable to
the Company w.e.f. 1st April 2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it’s not likely to have
any significant impact in its financial statements.

C Critical estimates and judgements -

The preparation of financial statements requires the use
of accounting estimates which by definition will seldom
equal the actual results. Management also need to
exercise judgement in applying the Company’s accounting
policies.

This note provides an overview of the areas that involved
a higher degree of judgement or complexity, and items
which are more likely to be materially adjusted due to
estimates and assumptions turning out to be different
than those originally assessed. Detailed information about
each of these estimates and judgements is included in
relevant notes together with information about the basis
of calculation for each affected line item in the financial
statements.

The areas involving critical estimates or judgement
are:

(i) Estimated useful life of PPE, investment property and
intangible assets - refer note 2A, 3 and 4.

The Company reviews the useful lives of property, plant and
equipment, Investment properties and intangible assets
at the end of each reporting period. This reassessment
may result in change in depreciation and amortisation
expense in future periods.

(ii) Inventory write down - refer note 9

The Company reviews the allowance for defective and
obsolete items inventory, wherever necessary at the end
of each reporting period.

(iii) Estimation of tax expenses, utilisation of deferred tax
assets and tax payable - refer note 35

The Company reviews the carrying amount of tax
expenses, deferred tax assets and tax payable at the end
of each reporting period.

(iv) Probable outcome of matters included under
Contingent Liabilities - refer note 38

Management has estimated the possible outflow of
resources at the end of each annual reporting financial
year, if any, in respect of contingencies/Litigations against
the Company as it is not possible to predict the outcome
of pending matters with accuracy.

(v) Estimation of Defined benefit obligation - Note 41

The cost of post-employment benefits is determined
using actuarial valuations. The actuarial valuation involves
making assumptions about discount rates, future salary
increases and mortality rates. Due to the long term nature
of these plans, such estimates are subject to significant
uncertainty.

(vi) Leases - Estimating the incremental borrowing rate
-refer note no 1 (ii) (f)

The Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is
the rate of interest that the Company would have to pay to
borrow over a similar term, and with a similar security, the
fund necessary to obtain an asset of a similar value to the
right-of-use asset in a similar economic environment.

(vii) Allowance for doubtful debts

Trade receivables do not carry any interest and are
stated at their nominal value as reduced by appropriate
allowances for estimated irrecoverable amounts. Under
Ind AS, impairment allowance has been determined
based on Expected Credit Loss (ECL) model. Estimated
irrecoverable amounts are based on the ageing of the
receivable balance and historical experience. Individual
trade receivables are written off if the same are not
collectible.

(viii) Sales Return

The Company accounts for sales returns accrual by
recording an allowance for sales returns concurrent with
the recognition of revenue at the time of a product sale.
This allowance is based on the Company’s estimate of
expected sales returns. The Company deals in various
products and operates in various markets. Accordingly,
the estimate of sales returns is determined primarily by
the Company’s historical experience in the markets in
which the Company operates.

(ix) Share-based payments

Estimating fair value for share-based payments requires
determination of the most appropriate valuation model,
which is dependent on the terms and conditions of the
grant. The estimate also requires determination of the
most appropriate inputs to the valuation model including
the expected life of the option, volatility and dividend yield
and making assumptions about them.

D. Business Combinations:

Method of Accounting:

Business combinations are accounted for using the
acquisition method.

Acquisition Date:

The acquisition date is the date when control is transferred
to the acquirer. Judgment is applied to determine this date
and assess control.

Definition of Control:

Control exists when the Group is exposed to variable
returns and can influence those returns through power
over the acquiree. Substantive potential voting rights are
considered in assessing control.

Measurement of Goodwill:

Goodwill is measured as the excess of consideration
transferred (including non-controlling interest) over the
net identifiable assets acquired and liabilities assumed.

If net assets exceed consideration, the excess is
recognized as capital reserve (bargain purchase gain).

Consideration Transferred:

Includes:

i. Fair value of assets transferred

ii. Liabilities incurred to previous owners

iii. Equity interests issued

iv. Fair value of contingent consideration
Excludes:

i. Amounts related to settlement of pre-existing
relationships

Contingent Consideration:

If classified as equity: not remeasured, settled within
equity

Otherwise: remeasured at fair value, changes recognized
in profit or loss

Transaction Costs:

ALL acquisition-related costs (e.g., legal, due diligence,
consulting fees) are expensed as incurred.

Non-controlling Interest (NCI):

NCI is recognized either:

i. At fair value, or

ii. At proportionate share of net assets of the acquiree
Impairment of Goodwill:

GoodwiLL is tested for impairment annuaLLy, or more
frequently if indicators of impairment exist.

Acquisition of NCI (Post-Control):

Treated as equity transactions.

Difference between consideration paid and carrying value
of net assets acquired is recorded in equity.

Dues from directors or other officers of the Company - -

Dues from firms or private companies in which director is a partner or a - -

director or a member

Note:

“Imported garments were fully exempted from payment of CVD under Notification No. 30/2004- C.E. dated 09th July 2004, subject
to the condition that no CENVAT Credit has been availed on the inputs or on capital goods. However, during the relevant period
(Financial year ended 31 March 2011 to 31 March 2014), there was a dispute between the importers and the Customs Department
regarding the applicability of the said benefit and the fulfilment of the aforesaid condition. The Customs Department had taken a
view that the condition of “where NO CENVAT credit has been availed on the inputs by suppliers” was not applicable on the imported
goods and accordingly, the importers were not eligible for the benefit of the said Notification. Basis the above notification, Raymond
Apparel Limited (business undertaking of Raymond apparel limited merged with Raymond Limited w.e.f 23 March 2022) had paid CVD
under protest amounting to ? 2,257 Lakhs during the period from 2011 to 2015.

However, Raymond Apparel Limited (business undertaking of Raymond apparel limited merged with Raymond Limited w.e.f 23rd
March 2022) had filed refund applications of CVD paid under protest, amounting to ? 2,257 Lakhs, basis the order passed by the
Hon’ble Supreme Court of India in the case of M/s. SRF Ltd. vs Commissioner of Customs, Chennai reported at 2015 (318) E.L.T.
607 (SC), which interpreted Condition No. 20 of Notification No. 06/2002-CE (Sl. No. 122). The Hon’ble Supreme Court held that
importers of goods could claim benefit of such notification at the time of import for exemption from payment of CVD.

During FY 2023-24, out of total claim of ? 2,257.44 Lakhs, the Company has received the amount of ? 1,215 Lakhs and the same has
been grouped under 'Other income’.

Note 1:

The Board of the Company at its meeting held on 27th April, 2023 approved the Composite Scheme of Arrangement between Raymond
Limited and Raymond Lifestyle Limited (“RLL”) (formerly known as Raymond Consumer Care Limited) and Ray Global Consumer
Trading Limited and their respective shareholders (“Scheme”). The Scheme inter-alia provides for: Demerger of the lifestyle business
from Raymond Limited (“RL”) and the lifestyle business carried out through subsidiaries of RL along with its strategic investment in
Ray Global Consumer Trading Limited (“RGCTL”) into RLL and issuance of equity shares of RLL to all the shareholders of RL through
Composite Scheme of Arrangement (“Demerger”); andAmalgamation of RGCTL with RLL along with the consequential reduction and
cancellation of the paid-up share capital of RLL held by Ray Global Consumer Trading Limited.

The Scheme is approved by Hon’ble National Company Law Tribunal and with submission of the same with statutory authorities is
effective from 30th June, 2024.

i. Notes:

Refer note 45 for information on interest risk, market risk and liquidity risk.

The Company had used the borrowing for the specific purpose for which it was availed.

There is no default in repayment of borrowings and payment of interest thereon during the year ended 31 March 2025 and 31
March 2024.

Refer note 37 for information on assets provided as collateral or security for borrowings or financing facilities availed by the
Company.

Quarterly statements of current assets filed by the Company with banks are in agreement with the books of account.

ii. Security

(a) Loans repayable on demand from banks (includes short term loan)

Secured as per the consortium agreement by hypothecation of inventories, receivables , book debts and other current
assets of the company excluding liquid investments, both present and future.

The applicable rate of interest is 1 month MIBOR, 3 months T-Bill or overnight MIBOR spread of 0.6%. Effective interest
rate ranges from 6.83% to 11.05% p.a. (31 March 2024: 7.00% to 9.45% p.a.).

(b) Bills discounted with bank

Bill Discounting facility is secured against book debts, receivables, Claims and bills discounted under this facility

Notes:

1. The Company has received investigation report under Rule 129 of the Central Goods And Service Tax Rules, 2017 dated 24
September 2019 on 23 October 2019 from Director General of Anti Profiteering, which alleges that the Company has profiteered
? 1,848 lakhs for the period 15 November 2017 to 31 December 2018 by not passing the benefit of GST rate reduction from
28% to 18% w.e.f. 15 November 2017. Further, the Company received an order dated 11 May 2020 with respect to the above.
The Company filed a writ petition with Delhi High Court against the aforesaid order on 11 August 2020. The Company
has deposited profiteered amount of ? 1,566 lakhs under protest vide Delhi High Court order dated 12 February 2021.
In the assessment of the management, which is supported by legal advice, the Company believes that they have passed on
the benefit of relevant price reductions to its customers and considering this, aforesaid matter is not likely to have significant
impact and accordingly, no provision has been considered in the financial statements and the amount of ? 1,848 lakhs has been
disclosed as contingent liability.

2. The Competition Commission of India (CCI) has initiated an investigation into alleged cartelisation between manufacturers of
male latex condoms in government tenders for the period 2010-2013 in June 2015. The Company has submitted documents
required by investigating agency and is awaiting its report.

3. The Company is contesting all of the above demands and the management believes that its positions are likely to be upheld. No
expense has been accrued in the standalone financial statements for the aforesaid demands. The management believes that the
ultimate outcome of these proceedings are not expected to have a material adverse effect on the Company’s financial position
and results of operations and hence no provision has been made in this regard.

4. It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution
of the respective proceedings.

5. The amounts disclosed above represent the best possible estimates arrived at on the basis of available information.

6. The Company does not expect any reimbursements in respect of the above contingent liabilities.

7. Amount outstanding as at balance sheet date represents gross demand raised by the tax authorities, as amount paid under
protest is not charged to the standalone statement of profit and loss by the Company.”

Above amounts have been included in the line item “Contribution to provident fund and other funds” in note 28. Also, the
contribution of the Company is limited to the amount contributed and it has no further contractual or constructive obligation.

(b) Defined benefit plan

(i) Gratuity

Under the gratuity plan, every employees who have completed at least five years of service gets a gratuity on departure
at 15 days of last drawn salary for each completed year of service. This defined benefit plan is governed by The Payment
of Gratuity Act, 1972. The gratuity plan is a funded plan and the Company makes contributions to Raymond Limited
Employees Gratuity Fund and other recognised funds in India. Each year, the Board of Trustees reviews the level of funding
in the gratuity plan. Such a review includes the asset-liability matching strategy and investment risk management policy.
This includes employing the use of annuities and longevity swaps to manage the risks.

(c) Compensated absences

The leave obligations cover the Company’s liability for sick and earned leave. Leave encashment is payable to the eligible
employees on separation from the entity due to death, retirement, superannuation or resignation. AIL eligible employees are
entitled to avail leave while serving in the entity. Accumulating paid absences may be either vesting (in other words, employees
are entitled to a cash payment for unused entitlement on superannuation or resignation or retirement) or non-vesting (when
employees are not entitled to a cash payment for unused entitlement on superannuation or resignation or retirement). An
obligation arises as employees render service that increases their entitlement to future paid absences. The obligation exists,
and is recognised, even if the paid absences are non-vesting, although the possibility that employees may leave before they use
an accumulated non-vesting entitlement affects the measurement of that obligation.

(Figures in bracket relate to previous year)

Note: 44 Financial instruments

Financial Instrument by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions are
used to estimate the fair values:

1. Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, trade payables,
other current financial assets/ liabilities (except derivative financial instruments) and short term borrowings approximate their
carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments are evaluated by the Company based on parameters such as individual credit worthiness of the counter¬
party. Based on this evaluation, allowances are taken to account for expected losses on these receivables. Accordingly, fair
value of such instruments is not materially different from their carrying amounts.

3. The fair values for deposits were calculated based on cash flows discounted using market interest rate on the date of initial

recognition and subsequently on each reporting date. The lease liability is initially recognised at the present value of the
future lease payments and is discounted using the interest rate implicit in the lease or, if not readily determinable, using the
incremental borrowing rates and subsequently measured at amortised cost.

4. The fair value of long term borrowings approximate their carrying amounts due to the fact that no upfront fees is paid as

compensation to secure the borrowing and the interest rate is equal to the market interest rate.

5. The fair value of investment in quoted investment in equity shares and debentures is based on the bid price of respective

investment as at the balance sheet date.

6. The fair value of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of these mutual

fund units in the published statements as at balance sheet date. NAV represents the price at which the issuer will issue further
units of mutual fund and the price at which issuers will redeem such units from the investors.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices).

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market
data (unobservable inputs).

There have been no transfer amongst the levels of fair value hierarchy during the year.

For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that
is significant to the fair value measurement as a whole) at the end of each reporting period.

Note: 45 Financial risk management objectives and policies

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s primary focus
is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The
Company’s management oversees these risks and formulates the policies which are reviewed and approved by the Board of Directors
and Audit Committee. Such risks are summarised below:

a) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market
prices. The primary market risk to the Company is currency risk and interest risk.

Interest risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
debt obligations.

The Company’s exposure to risk of change in foreign currency exchange rates arising from foreign currency transactions, is primarily
with respect to the currencies where the exchange rates are not fixed. Foreign exchange risk arises from future commercial transactions
and recognised assets and liabilities denominated in a currency that is not the functional currency of the Company. The Company uses
derivative financial instruments to mitigate foreign exchange related risk exposures. The counter party of these derivative instruments
are primarily banks. These derivative financial instruments are valued based on inputs that is directly or indirectly observable in the
marketplace.

The Company procures/ sell goods in their functional currency and in case of imports/ exports, it primarily deals in United States
Dollars (‘USD’) and Australian Dollar (‘AUD’). Other currencies are Euro, Great Britain Pound (‘GBP’), United Arab Emirates Dirham
(‘AED’), Chinese Yuan (‘RMB’), Bangladeshi Taka (‘BDT’) and Swiss Franc (‘CHF’).

The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management
policies. There are earnings from customers in foreign currency which act as a natural hedge against foreign currency risk.

All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience
and supervision. It is the Company’s policy that no trading in derivative for speculative purposes may be undertaken. These derivative
financial instruments are forward contracts which are used to mitigate the foreign exchange exposure of highly probable future
forecasted sales or purchase.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises from cash and cash equivalents, bank balances other than cash and cash equivalents,
other financial assets as well as credit exposures to customers including outstanding receivables and contract assets. The
maximum exposure to credit risk is equal to the carrying value of the financial assets.

Trade receivables and contract assets

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. To manage
this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition,
current economic trends, forward looking macroeconomic information, analysis of historical bad debts and ageing of accounts
receivables. Individual risk limits are set accordingly. The Company’s exposure to credit risk is influenced mainly by the individual
characteristics of each customer. The demographics of the customer including the default risk of the industry and country in
which the customer operates also has an influence on credit risk assessment.

The expected credit loss rates are based on the payment profiles of sales over a period of 36 months before the reporting date and
the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current
and forward-looking information on macro-economic factors affecting the ability of the customers to settle the receivables. The
Company recognises lifetime expected losses for all trade receivables and contract assets that do not constitute a financing
component.

The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.
Outstanding customer receivables and contract assets are regularly monitored
Other financial assets

The Company periodically monitors the recoverability and credit risks of its other financial assets. The Company evaluates 12
months expected credit losses for all the financial assets for which credit risk has not increased significantly. In case credit risk
has increased significantly, the Company considers life time expected credit losses for the purpose of impairment provisioning.

The Company has considered financial condition, current economic trends, forward looking macroeconomic information,
analysis of historical bad or doubtful receivables and ageing of receivables related to cash and cash equivalents, bank balances
other than cash and cash equivalents, margin deposits, security deposits and other financial assets. In most of the cases,
risk is considered low since the counterparties are reputed organisations with no history of default to the Company and no
unfavourable forward looking macro economic factors. Wherever applicable, expected credit loss allowance is recorded.

Note: 46 Capital risk management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise
returns to its shareholders.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to
meet its strategic and day-to-day needs. Management considers the amount of capital in proportion to risk and manage the capital
structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust
the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue
new shares.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor,
creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate
steps in order to maintain, or if necessary adjust, its capital structure.

Note 48: Export Promotion Capital Goods (EPCG) scheme allows import of certain capital goods including spares at concessional
duty subject to an export obligation for the duty saved on capital goods imported under EPCG scheme. The duty saved on
capital goods imported under EPCG scheme being Government Grant, is accounted as stated in the Accounting policy on
Government Grant.

Note: 49 Employee Stock

(a) Employee Stock Option Plan - RCCL ESAR 2021 Scheme

1 The establishment of J.K. Helene Curtis Limited - Employee Stock Option Scheme 2018 (JKHC ESOP 2018) and
Raymond Consumer Care Private Limited - Employee Stock Option Scheme 2019 (RCCPL ESOP 2019) was approved by
shareholders in their extraordinary general meetings held on 30 October 2018 and 30 April 2019 respectively. Pursuant
to the Scheme, all the employees, eligible under earlier JKHC ESOP 2018 and RCCPL ESOP 2019 (hereinafter together
referred to as 'Earlier ESOS’) became eligible under new Employee Stock Option Scheme ('New ESOS’) in Raymond
Consumer Care Limited (RCCL) for share options held in Earlier ESOS.

The Board of Directors vide their meeting dated 29 June 2020 approved that terms and conditions of New ESOS will
remain same as those of earlier ESOS and thus accounting and disclosure therein has been done in accordance with
terms and conditions prescribed in earlier ESOS, pending approval of new ESOS by the Company’s Board of Directors.

The Employee Stock Option Plan is designed to retain and reward the employees as stakeholders in the growth and
success of the Company as they are the key catalyst in progress of the Company. Under the plan, participants are granted
options which vest upon completion of vesting period as described below from the grant date. Participation in the plan is
at the Nomination and Remuneration Committee’s discretion and no individual has a contractual right to participate in
the plan or to receive any guaranteed benefits.

Once vested, the options remain exercisable for a period of one year.

Options are granted under the plan for no consideration and carry no dividend or voting rights. When exercisable, each
option is convertible into one equity share. The exercise price of the option is ? 10 per option. Set out below is a summary
of options granted under the plans:

2 The Company is in the process of establishing an ESOP scheme for Raymond Lifestyle Limited (RLL), in alignment with
the Composite Scheme of Arrangement, to benefit option holders under the Raymond ESOP 2023. As per the demerger
framework, option holders from the existing Raymond Limited (RL) ESOP scheme will be treated on par with equity
shareholders in determining the number of options to be granted. Accordingly, they will receive stock options under RLL’s
new ESOP scheme in a ratio of 4:5.

To ensure equitable treatment and reflect the value attributable to the original RL ESOP scheme, the exercise price of
the options has been proportionately allocated between RL and RLL. This approach is designed to maintain fairness and
continuity in employee benefits following the demerger.

3 Expense arising from share-based payment transactions

The total expenses arising from share-based payments transactions recognised in the Statement of Profit and Loss as
part of employee benefit expense are as follows:

4 Raymond Consumer Care Limited (RCCL), has granted Stock Options to its eligible employees and employees of the
Company, in accordance with the The Raymond Consumer Care Limited Employee Stock Appreciation Rights Scheme
2021 (RCCL ESAR 2021) also known as the New ESOS Scheme with the proportionate vesting period spread over 4 years
from the date of IPO with an exercise period of one year. The holder of each option is eligible for one fully paid equity share
of the company of the face value of ? 10 each on payment of ? 10 per option. The fair value of option determined on the
date of grant is ? 0.11 per option, based on the Black Scholes Model.

During the previous year, an amount ? 32.89 lakhs has been written back as options lapsed due to termination of RCCL
ESAR 2021 Scheme via Board Approval on 3 May 2023.

5. The Lifestyle undertaking was part of Raymond Limited prior to its demerger into the Company. Therefore, certain
employees of the Company have been holding Stock options as part under Employee Stock Option plan (ESOP plan)
operated by Raymond Limited from historical periods. Pending finalization of new plan, the employees continue to hold
ESOP’s in Raymond Limited as at 31 March 2025. The proportionate costs representing benefits accrued to the Company
have been paid to Raymond Limited.

Note 50 - Cybersecurity incident

The Company had identified a ransomware infection within its network that resulted in the encryption of critical user data and
disrupted the operations for a brief period. The threat actor infiltrated the network via VPN using compromised credentials
associated with a local VPN user from 11 February, 2025 to 16 February, 2025.

The Company immediately involved external experts and isolated the infected infrastructure. Also, the Company promptly took
steps to contain and remediate the impact of the incident and short-term goals were agreed and implemented. The Company
implemented alternate controls and conducted containment, evaluation, restoration, and remediation activities as part of its
response to the cyberattack with the assistance of external cybersecurity and information technology specialists. The Company
has assessed and concluded that the accuracy and completeness of the financial information post the aforesaid remediation
activities has not been affected as a result of the incident.

The Company continues to strengthen its cybersecurity infrastructure and is in the process of implementing certain long-term
measures including improvements to its cyber and data security systems to safeguard against such risks in future.

Note 51: The Ministry of Corporate Affairs (‘MCA’) has prescribed a requirement for companies under the proviso to Rule 3(1) of
the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies,
which uses accounting software for maintaining its books of account, shall use only such accounting software which has a
feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account
along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which have a feature of audit trail (edit log)
facility and the same was enabled at the application level. During the year ended 31 March 2025, the Company has not enabled
the feature of recording audit trail (edit log) at the database level for the said accounting software to log any direct data changes.
Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record retention where
such feature was enabled.

Note 53: Merger of lifestyle business undertaking

The Board of Directors of the Company at its meeting held on 27 April 2023 had approved the Composite Scheme of Arrangement
for the demerger of the lifestyle business undertaking of Raymond Limited ('Demerged Company’) into Raymond Lifestyle Limited
(formerly known as Raymond Consumer Care Limited) (the 'Company’) on a going concern basis. The appointed date proposed under
this scheme was 01 April 2023.

The Company had received requisite approval from National Company Law Tribunal ('NCLT’) vide its order dated 21 June 2024.
Respective companies had filed the certified true copy of NCLT order along with the sanctioned scheme with the Registrar of
Companies on 30 June 2024. Accordingly, the scheme was effective w.e.f. 30 June 2024.

The accounting of this scheme in the books of the Company has been done in accordance with Ind AS 103 'Business Combinations’
('Ind AS 103’) as on the appointed date. Consequently, the Company has restated its financial statements as at and for the year ended
31 March 2024 to include the financial information of the acquired lifestyle business undertaking w.e.f. 01 April 2023. As per Ind AS
103, purchase consideration has been allocated on the basis of fair valuation determined by an independent valuer.

As a consideration for the demerger, the Company was required to issue its equity shares to the shareholders of Raymond Limited as
on record date in 4:5 swap ratio (i.e., four shares of ? 2 each had to be issued by the Company for every five shares of ? 10 each held
by the shareholders in Raymond Limited). Accordingly, the Company had allotted 53,258,984 equity shares having face value of ? 2
each to the shareholders of Raymond Limited on 11 July 2024. These equity shares were subsequently listed on BSE Limited ('BSE’)
and the National Stock Exchange of India Limited ('NSE’) on 05 September 2024.

Notes:

1. Debt = Non current borrowings Current borrowings

2. Net worth = Paid up share capital Reserves created out of profit - Accumulated losses

3. Earnings available for debt service = Net profit after tax (excluding OCI) Non cash operating expenses Interest expenses

4. Debt service = Interest expenses Lease payment within next 12 months Principal repayment of borrowings within next 12
months

5. Cost of goods sold = Cost of materials consumed Changes in inventories of finished goods, stock-in trade and work-in¬

progress Consumption of stores and spare parts

6. Working capital = Current assets - Current liabilities

7. EBIT = Earnings before finance costs, other income and tax

8. Capital employed = Tangible net worth (i.e., net worth - intangible assets) total borrowings deferred tax liabilities

i) Debt - Equity ratio (times): Increase in the ratio by 49% is mainly due to increase in the loan in the current year

ii) Debt Service Coverage Ratio (times): Decrease in the ratio by 36% is mainly on account of decrease in EBIDTA in the current
year as compared to the previous year.

iii) Return on Equity: Decrease in the ratio by 102% is mainly on account of is mainly on account of net loss in the current year as
compared net profit in the previous year

iv) Net Profit/(Loss) Margin (%): Decrease in the ratio by 102% is mainly on account of net loss in the current year as compared
net profit in the previous year.

v) Return on Capital employed (%): Decrease in ratio by 76% is due to loss in the current year as compared to previous year.

vi) Return on Investment (%): Increase in ratio by 74% is due to increase in fair value gain in the current year as compared to
previous year.

Note 56: Additional regulatory information required by Division II Schedule III of the Act

a) Details of benami property

Company is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder as at 31 March 2025 and 31 March 2024. Further, no proceedings have been initiated or pending against the
Company for holding any benami property under the said act and rules mentioned above for the years ended 31 March 2025
and 31 March 2024.

b) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or any other lender for the years ended
31 March 2025 and 31 March 2024.

c) Relationship with struck off companies

There is no transaction and year-end balance as at 31 March 2025 and 31 March 2024 with struck off companies.

d) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under section 2(87) of the Act for the years ended 31 March
2025 and 31 March 2024.

e) Utilisation of borrowed funds and share premium (for the years ended 31 March 2025 and 31 March 2024)

The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) to any other person or entity, including foreign entity ('Intermediaries’) with the understanding (whether recorded
in writing or otherwise) that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company has not received any fund from any person or entity, including foreign entity ('Funding Party’) with the understanding
(whether recorded in writing or otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

f) Undisclosed income

No income has been surrendered or disclosed as income during the current and previous year.

g) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current and previous year.

h) Registration of charges or satisfaction with Registrar of Companies (‘ROC’)

There are no charges which are yet to be registered with the ROC beyond the statutory period as at 31 March 2025 and 31 March
2024.

i) Revaluation

The Company has not revalued its PPE, ROU assets and intangible assets during the current and previous year.

Note 57: Disclosure as per Regulation 53(1)(f) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015

The disclosure is applicable for the year ended 31 March 2024 only as the listed non-convertible securities are transferred to Raymond
Lifestyle Limited on 30 June 2024 under the scheme of arrangement [refer note 53].

Note 60: As per the transfer pricing rules, the Company has examined international transactions and documentation in respect
thereof to ensure compliance with the said rules. The management does not anticipate any material adjustments with regard to the
transactions involved.

Note 61: Authorisation of standalone financial statements

The standalone financial statements as at and for the year ended 31 March 2025 were approved by the Board of Directors on
12 May 2025.

Note 62: Previous year figures have been regrouped, reclassified and rearranged wherever necessary, to conform to this year’s
presentation, and these are not material to the standalone financial statements.

These are the material accounting policies and other explanatory information referred to in our report of even date

For WALKER CHANDIOK & CO LLP For and on behalf of Board of Directors

Chartered Accountants

Firm's Registration Number: 001076N/N500013

Bharat Shetty Sameer Shah Gautam Hari Singhania

Partner Chief Financial Officer Chairman and Managing Director

Membership No. 106815 DIN: 00020088

Mumbai, 12 May 2025

Priti Alkari

Company Secretary
Mumbai, 12 May 2025