(iv) On 6^th November 2007, the Company had entered into four separate tri-partite agreements with Pashmina Holdings Limited and each of the four sub-lessees of residential units in JK House (being Dr. Vijaypat Singhania, Mr. Gautam Hari Singhania, Mr. Akshaypat Singhania and Ms. Veenadevi Singhania along with Mr. Anant Singhania, who are considered to be related parties and said agreements were not acted upon. The said tri-partite agreements have been rejected by the shareholders of the Company at its meeting dated 5^th June 2017. Dr. Vijaypat Singhania, Mr. Akshaypat Singhania and Ms. Veenadevi Singhania along with Mr. Anant Singhania had initiated the arbitration proceedings against the Company to secure the specific performance of the tripartite agreements. In the matter of Mr. Akshaypat Singhania and Ms. Veenadevi Singhania along with Mr. Anant Singhania, Hon Arbitration Tribunal has passed an Award and rejected the claims of specific performance of the tri-partite agreements and also denied any relief / damages / compensation in lieu thereof, except that the Company has been directed to only reimburse the stamp duty on sub-lease agreements, that were paid by these erstwhile sub-lessees, along with interest (refer note 34). Further, Mr. Akshaypat Singhania and Ms. Veenadevi Singhania along with Mr. Anant Singhania have filed petitions for setting aside the Award of the Hon Arbitration Tribunal before the Bombay High Court which is pending. In the matter of Dr. Vijaypat Singhania, the Award is pending till date.

Premises given on operating lease:

The Company has given certain investment properties on operating lease. These lease arrangements range for a period between 2 and 5 years and include both cancellable and non-cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms.

Estimation of fair value

The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location, demand, restrictive entry to the complex, age of building and trend of fair market rent in village Panchpakhadi area.

This fair value is based on valuations performed by an registered independent valuer/ best evidence of fair value in an active market for similar properties. Fair valuation is based on replacement cost method. The fair value measurement is categorised in level 3 fair value hierarchy.

(i) During the earlier years, the Company invested an amount of C 6168 lakhs in the financial year ended 31^st March, 2016 and C 2000 lakhs in the financial year ended 31^st March, 2015 by subscription to the rights issue of equity shares of Raymond Luxury Cottons Limited (RLCL) a Subsidiary of the Company, enhancing the Company’s shareholding from 62% to 75.69%. In the year 2012-13, Cotonificio Honegger S.p.A (‘CH’), Italy, the erstwhile JV partner with Raymond Limited through one of its joint venture Company in India, Raymond Luxury Cottons Limited (RLCL) (Erstwhile known as Raymond Zambaiti Limited), had submitted request for voluntary winding up including composition of its creditors in the Court of Bergamo, Italy. Consequent to this, RLCL as at 31^st March, 2013, had provided for its entire accounts receivable from CH of USD 1255058 and Euro 612831, equivalent Indian Rupee aggregating C 1122.24 lakhs. In the year 2013-14, RLCL had put up its claim of receivable from CH of C 1122.24 lakhs before the Judicial Commissioner of the Composition (the Commissioner) appointed bythe Court ofBergamo, Italy. In protraction ofmatterwith Cotonificio Honegger S.p.A (‘CH’), Italy, the Judicial Commissioner of the Composition (“the Commissioner”) appointed by the Court of Bergamo, Italy, has declared RLCL as unsecured creditor for the amount outstanding from ‘CH’. Further ‘CH’ had also sought permission from the Court of Bergamo, Italy, for initiating proceeding against RLCL in India.

RLCL had received a notice dated 23^rd November, 2015 notifying that CH has filed a Petition against them before the Hon’ble Company Law Board (“CLB”), Mumbai Bench under Section 397 and 398 of Companies Act, 1956. RLCL responded to the petition filed by CH. The CLB in its order dated 26^th November, 2015 has recorded the statement made by the counsel for RLCL that CH’s shareholding in RLCL shall not be reduced further and the fixed assets of RLCL also shall not be alienated till further order. Subsequently, the proceedings were transferred to the National Company Law Tribunal (“NCLT”), Mumbai bench and currently, the matter is pending before the said forum. RLCL has filed a Miscellaneous Application on 29^th January, 2019 seeking part vacation of the interim order dated 26^th November, 2015. The NCLT, Mumbai Bench has allowed the application filed by RLCL and had directed that the main company petition along with the application for vacating the stay be listed for hearing. The NCLT has heard the matter both side on 19^th April, 2023 and passed an interim order for settlement and adjourn this matter to 9^th June, 2023 for reporting settlement.

The interlocutory application was filed jointly by the parties seeking withdrawal of the Company Petition along with all pending applications in the matter. The matter was settled amicably by the parties by way of a Settlement Agreement dated January 17, 2023, for an amount of Euros 2,100,000 to be paid by RL to CH, for buyback of its shares in RLCL. Basis the said Settlement Agreement entered between the parties, the matter has been withdrawn by consent, as recorded by the NCLT, Mumbai Bench, in its Order dated June 9, 2023. Consequently, RLCL became a wholly-owned subsidiary of RL.

(ii) The management has considered that the losses suffered by Raymond UCO Denim Private Limited, a joint venture company (RUCO), indicate an impairmentin the carryingvalue ofthe investment. In addition to the above investment, the Companyalsohas also given loans C 2500 lakhs (31^st March, 2023- C 2500 lakhs), interest receivable of C 65.21 lakhs (31^st March, 2023- C 65.60 lakhs) and other receivable of C 912.85 lakhs (31^st March, 2023- C 866.06 lakhs) as at 31^st March, 2024.

The RUCO has also undertaken cost reduction measures as a mitigatory factor and basis its performance in the last quarter of the current financial year, has shown a marginal growth in the demand which management believes will further improve in the future quarters in the next year. Further, the Company along with its Joint venture Partner vide their letter of support, have committed necessary level of financial and other support to ensure that RUCO continues to operate as a going concern and to meet its liabilities as and when they fall due for payment for the year ending 31 March 2025.

However, the management with the help of a valuation specialist, has carried out an impairment assessment for the entire investment in and other receivables from RUCO and, on a conservative basis, has recognised an estimated provision of C 2900 lakhs (31^st March, 2023- Nil) as diminution in the carrying value of its investment during the year.

Significant Estimates : The recoverable value of exposure in Raymond Uco Denim Private Limited is determined by an Independent Registered valuer. The Company uses judgement to select from variety of methods and make assumptions which are mainly based on market conditions existing at the end of each reporting period.

(iii) During the year ended 31^st March 2020, pursuant to approval from National Company Law Tribunal (NCLT), to the JV company, Raymond UCO Denim Private Limited (RUDPL) towards reduction of its preference share capital, the investment of the Company

in preference share capital of RUDPL having a carrying value of H 8700 lakhs was settled at an aggregate consideration of H 10 Lakhs. Accordingly, the balance amount of H 8690 lakhs representing reduction in preference share capital investment, had been treated as deemed equity investments in RUDPL.

(iv) The Board of Directors of the Company at its meeting held on 27^th September, 2021 had approved a Scheme of Arrangement (‘RAL Scheme’) between the Company and Raymond Apparel Limited (‘RAL’ or ‘Demerged Company’) (earlier, wholly owned subsidiary of the Company) for demerger of the business undertaking of RAL comprising of B2C business including Apparel business (and excluding balances identified as quasi equity) as defined in the RAL Scheme, into the Company on a going concern basis. RAL Scheme was approved by the Hon’ble National Company Law Tribunal vide its order dated 23^rd March, 2022. The Appointed Date was 1^st April, 2021. Accordingly, the Company has accounted for the Scheme of Arrangement under the ‘pooling of interests’ method in accordance with Appendix C of Ind AS 103‘Business Combinations’.Pursuant to the RAL Scheme, all assets and liabilities pertaining to business undertaking of the demerged company as defined in the RAL scheme have been transferred to the Company as defined in the RAL Scheme without any consideration. Further, on 23^rd March, 2022, the balances recoverable towards ICDs, trade receivables and other financial assets, by Raymond from RAL, on implementation of the RAL Scheme, had been considered as quasi equity and hence re-classified under “Investment in subsidiaries” as “Deemed equity investment”. Since, these balances would continue to be retained in RAL, on the basis of the business potential of the remaining business in RAL, the aforesaid balances were not expected to be recoverable from RAL. Accordingly, provision for impairment had been recognised.

During the year ended 31 March 2024, the Company has sold its entire investment in wholly owned subsidiaries namely Raymond Apparel Limited and Ultrashore Realty Limited (erstwhile Colorplus Realty Limited) for a consideration of C 125 lakhs and C 1 Lakhs respectively. Accordingly, the Company has recognised surplus on sale of investment in subsidiaries of C126 lakhs (net of amounts fully provided in earlier year) during the year.

(v) During the Financial year 2019-2020, the Mumbai Bench of National Company Law Tribunal (“NCLT”) has vide its order dated 07^th February, 2020 approved the Composite Scheme of Amalgamation and Arrangement between J. K. Helene Curtis Limited (JKHC), J. K. Investo Trade (India) Limited (JKIT), Raymond Care Private Limited (RCCPL), Ray Global Trading Limited (RGCTL) and Ray Universal Trading Limited (RUTL) and their respective shareholders ('the scheme'). Pursuant to said Scheme, RCCPL has been amalgamated with JKIT and FMCG business of JKHC has been transferred to JKIT. The Combined FMCG business has then been transferred to and vested in RUTL. In consideration for the transfer and vesting of the Combined FMCG Business Undertaking in RUTL, RGCTL has issued and allotted shares to all the shareholders of JKIT during the FY 2020-21.

(vi) The Company has transferred its entire shareholding in Scissors Engineering Products Limited (“SEPL”), a wholly-owned subsidiary of the Company to J K Files & Engineering Limited (“JKFE”) (Erstwhile J K Files (India) Limited), another wholly-owned subsidiary of the Company at Nil consideration. The transfer of shares in SEPS to JKFE has been considered as ‘deemed equity investment in J K Files & Engineering Limited’(“JKFE”) in earlier year.

The Board of Directors of the Company at its meeting held on 27 September 2021 had approved the consolidation of the Tools & Hardware business carried out by JK Files & Engineering Limited (Formerly known as JK Files (India) Limited) (wholly owned subsidiary of the Company, “JKFEL”) and Auto Components business carried out by Ring Plus Aqua Limited (step down subsidiary of the Company), During the year ended 31^st March 2022, the Company had transferred its entire shareholding in Scissors Engineering Products Limited (holding company of Ring Plus Aqua Limited and wholly owned subsidiary of the Company) to JK Files & Engineering Limited (Formerly known as JK Files (India) Limited) by way of delivery under Section 123 of the Transfer of Property Act, 1882. Further, JKFEL had filed the Draft Red Herring Prospectus (DRHP) and Updated DRHP with the Securities and Exchange Board of India (SEBI) on 9 December 2021 and 4 April 2022, respectively, for an Initial Public Offer {‘‘IPO”} comprising of an Offer for Sale (‘OFS’). Based on the prevalent market conditions continuing to be restrained, with the validity of the Updated DRHP filed with SEBI becoming time barred during the previous year ended 31^st March 2023, it was considered more favourable to defer further pursuit of JKFEL IPO, at 31 March 2023. Accordingly, the Company has recognised the expenses incurred towards the IPO process in the statement of Profit and Loss during the previous year.

(vii) The Company has made an investment in 12,500,000 0.01% Non- Convertible Redeemable Preference shares (‘NCRPS’) with face value of Rs. 10 each of Ten X Realty Limited (“Ten X”) of Rs. 12,500 lakhs and 5,000,000 NCRPS with face value of Rs. 100

Imported garments were fully exempted from payment of CVD under Notification No. 30/2004- C.E. dated 09^th 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 H 2257.44 Lakhs and expensed out, during the period from 2011 to 2015.

However, Raymond Apparel Limited (business undertaking of Raymond apparel limited merged with Raymond Limited w.e.f 23^rd March 2022) had filed refund applications of CVD paid under protest, amounting to C 2257.44 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) on 26.03.2015 interpreted Condition No. 20 of Notification No. 06/2002-CE (SI. 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.

Basis as above, Raymond Apparel Limited (business undertaking of Raymond apparel limited merged with Raymond Limited w.e.f 23^rd March 2022) has brought the said amount in the books of account as “Claim Receivables” and created a provision for an equivalent amount in financial year ended 31^st March, 2019, as prudent practice.

Further, the Companyhad re-assessed the claim receivables and the claim application for additional CVD refund of C 712.69 Lakhs has been filed.

During the current year, out of total claim of C 2257.44 Lakhs, the Company has received the amount of C 1214.69 Lakhs and the same has been grouped under ‘Other income’

Inventory write downs are accounted, considering the nature of inventory, ageing, liquidation plan and net realisable value. Writedowns of inventories amounted to H 11894.23 lakhs as at 31 March, 2024 (as at 31 March, 2023 - H 10638.70 lakhs) These writedowns were recognised as an expense and included in 'changes in inventories of finished goods, stock-in-trade, work-in-progress and property under development' in the Statement of Profit and Loss.

As at 31 March 2023, out of H10638.72 lakhs, H 2164.45 lakhs were recognised as an expenses as exceptional item in statement of profit and loss.

Trade receivables include H2449.84 lakhs (31^st March, 2023 H 2249.45 lakhs) for which credit risk is retained by the Company under a factoring arrangement and are net of H22048.54 lakhs (31^st March, 2023 H 20245.02 lakhs) de-recognised (along with corresponding liability) on transfer ‘without recourse’ under a factoring arrangement. Company retains interest liability upto an agreed date on the entire amount, the costs for which are recognised as part of finance costs.

The trade receivables includes H1137.75 lakhs (31^st March, 2023 H 974.50 lakhs) receivables against which bills are discounted. Under this arrangement Company has transferred the relevant receivables to the banks in exchange for cash.However, Company has retained late payment and credit risk. The Company therefore continues to recognize the transferred assets in entirety in its balance sheet. The amount repayable under the bills discounted is presented as current borrowings. Trade receivables are generally on terms of 60 to 90 days.

Refer Note 45 for information about credit risk and market risk of trade receivables.

b) Rights, preferences and restrictions attached to shares

Equity shares: The Company has one class of equity shares having a par value of H10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Securities premium

Securities premium is created due to premium on issue of shares and is utilised in accordance with the provisions of the Act.

Capital reserve

Capital reserve is utilised in accordance with provision of the Act.

Capital Reserve on merger

Reserve arises on merger of apparel business as a part of the scheme.

Post-merger Incremental Net Assets account

Reserve arises on merger of apparel business as a part of the scheme.

Capital Redemption Reserve

Represent reserve created during buy back of Equity Shares and it is a non-distributable reserve.

General Reserves

Represents transfer portion of the net profit pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Share Options Outstanding

The Company has stock options schemes under which options to subscribe for the Company’s shares have been granted to management personal. ESOP reserve is used to recognise the value of equity-settled share based payments provided remunerations.

Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

Equity Instruments through other comprehensive income

The Company has elected to recognise changes in the fair value of certain investment in equity instrument in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of equity instrument.

i. The carrying amounts of financial and non financial assets as security for secured borrowings are disclosed in Note 37.

ii. Security

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

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

(b) Local Bills discounted with bank

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

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

Trade payables other than Micro Enterprise and Small Enterprise includes H22805.35 lakhs (31^st March 2023 H 19943.67 lakhs) based on assignment of the dues as per the guidelines issued by RBI under the Trade Receivables Discounting System for MSMEs.

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no material overdue principal amounts to such vendors at the Balance Sheet date.

Unsatisfied performance obligations on long term real estate contracts

Revenue is recognized upon transfer of control of products or services to customers.

Long term contracts entered into by the Company as on 31 March, 2024 is D 550,599.97 lakhs (31 March, 2023 D 343,153.54 lakhs) pertaining to real estate development projects. The unsatisfied performance obligation relating to these contracts aggregates to D185,527.61 lakhs (31 March, 2023 D 125,522.36 lakhs) as at year end.

The management of Company expects that 40.21% (31 March, 2023 : 35.49%) of the unsatisfied performance obligation amounting to D 74,603.29 lakhs (31 March, 2023 D 44,553.94 lakhs) pertaining to these long term contracts will be recognised as revenue during the next reporting period with balance in future reporting periods thereafter.

Consequent to reconciliation items shown above, the effective tax rate is 25.10 % (2022-23: 26.82%)Note: 1

During the previous year, while filing its return of income for the year ended 31 March 2022, the Company decided to exercise the option of lower tax rate available under Section 115BAA of the Income Tax Act, 1961 (“new tax regime”) as introduced by the Taxation Laws (Amendment) Act, 2019 (‘the Amendment Act”). Consequently, during the previous year , the Company has reversed the provision for current tax recognised based on the tax provisions applicable prior to adoption of the new tax regime, pertaining to the previous year ended 31 March 2022. Similarly, the Company has also remeasured/reversed its deferred tax assets (net) including MAT credits, outstanding as at 01 April 2022.

Note: 2 Refer note 50

ii) EPCG Commitments

Future export obligations / commitments under import of Capital Goods at Concessional rate of customs duty. As at 31 March, 2024 H 10227.90 lakhs (31 March, 2023 H 11462.48 lakhs)

iii) Other commitment

Equity commitment in joint venture, not exceeding amount H Nil as at 31 March 2024 (31 March 2023: H 2500 lakhs ) based upon the fulfilment of conditions mentioned under clause 6 of the sixth addendum dated 7 March 2022 to the shareholders agreements dated 1 June 2006.

Commitment in providing financial support to the joint venture to enable it to operate and settle its liabilites and obligation as they become due and continue as going concern for the next financial year.

Note 40: Ind As 116 Leases

The Company's lease asset primarily consist of leases for land (reclassified) and for buildings (premises) for retail stores and warehouses having various lease terms.

The maturity analysis of lease liabilities are disclosed in note 45 (iii)

Note 41: Post retirement benefit plans Defined Benefits Plan

(i) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India.

(ii) Pension Benefits

The Company operates defined benefit pension plans which provide benefits to some of its employees in the form of a guaranteed level of pension payable for certain years after retirement. The level of benefits provided depends on members' length of service and their salary in the final years leading up to retirement.

(iii) Provident fund

In case of certain employees , the Provident Fund contribution is made to a trust administered by the Company. In terms of the guidance note issued by the institute of Actuaries of India, the actuary has provided a valuation of Provident Fund liability based on the assumptions listed above and determined that there is no shortfall as at 31 March, 2024.

(iv) As per Actuarial Valuation as on 31 March, 2024 and 31 March, 2023 amounts recognised in the financial statements in respect of Employee Benefit Schemes are as follows:

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk derivatives to minimize risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit.

(v) Leave obligations

The leave obligations cover the Company’s liability for sick and earned leave.

The amount of the provision of H 4119.37 lakhs (31 March 2023 - H 3501.58lakhs) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations

(vi) Defined contribution plans

The Company also has certain defined contribution plans such as provident fund and super annuation plan for benefits of employees. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is C 1,815.70 lakhs (31 March 2023 - C 1,743.42 lakhs).

42 In accordance with Accounting Standard Ind As 108 ‘Operating Segment ‘, segment information has been disclosed in the consolidated financial statements of Raymond Limited, and therefore , no separate disclosure on segment information is given in these financial statements.

1) The Company has agreed with the lenders (Banks) of some of the subsidiaries/Joint Ventures for not disposing off Company's investments in such Subsidiaries/Joint Ventures without their prior consent.

2) Equity (or equity like) investments by the Company and equity (or equity like) infusion into the Company are not considered for disclosure under closing balances as these are not considered "outstanding" exposure. Refer note 5 and 17A & 17B for the same.

3) Loans to Subsidiaries and Joint venture:

Loans to the Subsidiaries and joint venture have been given for acquisition of assets and augmenting working capital and have been utilised for the same.

Guarantees given:

Guarantees provided to the lenders of the subsidiaries are for availing term loans and working capital facilities from the lender banks. Commitment given:

Refer Note 39(iii) for commitment given to Joint venture

4) All the material transactions stated above with related parties are on arm’s length basis.

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 were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

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

The fair values for loans, security deposits and investment in preference shares were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

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: other techniques forwhich all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's financial risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits , foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures like foreign exchange forward contracts, borrowing strategies and ensuring compliance with market risk limits and policies.

Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company's position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company, interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

Market Risk- Foreign currency risk.

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in overseas markets and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies.

Market Risk- Price Risk (a) Exposure

The Company's exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet either at fair value through OCI or at fair value through profit and loss. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company .

(b) Sensitivity

The table below summarizes the impact of increases/decreases of the BSE index on the Company's equity and Gain/Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company's equity instruments moved in line with the index.

Above referred sensitivity pertains to quoted equity investment (Refer Note 10(A) ). Profit for the year would increase/ (decrease) as a result of gains/losses on equity securities as at fair value through profit or loss.

Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

Note 46: Capital risk management (a) 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.

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.

49 Employee Stock Option Plan

The Company has implemented employee share-based payment plans for the employees of the Company and its group companies. All the options issued by the Company are equity share based options which have to be settled in equity shares only. The shares to be allotted to employees under the Employee Stock Option Plan (ESOP Plan) will be acquired by the Raymond Limited ESOP Trust (the ‘Trust’) formed for the purpose. The shares would be acquired through fresh issue made by the Company or through secondary acquisition through recognized stock exchange. The shareholders through postal ballet have approved grant of 1680588 options on 27 March 2023.

The Nomination and Remuneration Committee and Board of Directors have approved the ESOP plan at its respective meeting held on 17 February 2023.

(i) Fair value of options granted

The fair value at grant date is determined using the 'Black Scholes Merton model' and 'Monte Carlo Simulation Model'.

50 During the year, the Board of Directors of the Company at its meeting held on 27 April 2023 has approved the Composite Scheme of Arrangement which comprises of Demerger of the lifestyle business undertaking of Raymond Limited (the ‘Demerged Company’ or ‘RL’) into Raymond Consumer Care Limited (the ‘Resulting Company’ or ‘RCCL’) on a going concern basis. The Appointed Date proposed under this scheme is 1 April 2023. Pending receipt of statutory approvals as required, no adjustments are made in the books of account.

Considering the status of statutory approvals on scheme, the management believes that the said scheme will be effective before the date of filing of income tax return for the assessment year 2024-25. Accordingly, taking into consideration the expected statutory approvals on the scheme, the Company has calculated the advance tax and deposited the installments within due dates for both the parties to scheme i.e Raymond Limited and RCCL . Further, the Company will be filing its return of income for AY 2024-25 based on the tax calculations as per the demerger scheme filed with NCLT.

52 The Board of Directors of the Company at its meeting held on 25 February 2022 had approved a Scheme of Arrangement ('Real Estate Scheme') between the Company and Raymond Lifestyle Limited (wholly owned subsidiary of the Company) for demerger of the real estate business undertaking of the Company (as defined in the Real Estate Scheme) into Raymond Lifestyle Limited on a going concern basis. The Appointed Date was proposed as 1 April 2022. Pending receipt of statutory approvals as required including that of Mumbai Bench of the National Company Law Tribunal ('NCLT'), no adjustments have been made in the books of account and in the standalone financial statements upto all periods ended with 31 March 2023.

During the year, the Board of Directors of the Company at its meeting held on 27 April 2023 have approved the withdrawal of the Real Estate Scheme.

53 The Ministry of Corporate Affairs (MCA) has prescribed a new 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 accounts, 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 accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses the accounting software SAP for maintaining books of account. During the year ended 31 March 2024, the Company had not enabled the feature of recording audit trail (edit log) at the database level for the said accounting software SAP to log any direct data changes on account of recommendation in the accounting software administration guide which states that enabling the same all the time consume storage space on the disk and can impact database performance significantly. Audit trail (edit log) is enabled at the application level.

i) Current Ratio (%): Increase in current ration due to increase in investment , Trade receivable and bank balance other than cash.

ii) Net Capital Turnover (%): Increase in ratio due to increase in other income.

iii) Return on Investment (%): Increase on account of better returns on investments in current year, as compared to previous year

55 The Board of Directors has recommended Equity dividend of H 10 per equity share of face value H 10.00 each (Previous year H 3 ) for the financial year 2023-24. The same is subject to the approval of the shareholders at their ensuing Annual General Meeting.

56 Figures of the previous year has been re-grouped/re-arranged wherever necessary. The impact of the same is not material to the users of financial statements.

57 The Financial Statements were authorised for issue by the directors on 3^rd May, 2024

This is the summary of the significant accounting policies and other explanatory information referred to in our report of even date