Independent University, Bangladesh

An Audit Report
On
Similarity and Dissimilarity of Raymond Ltd. & Rahim textile mills
Ltd.

Prepared For:
Mr. Ahmed Ataul Hakeem
Lecturer, School of Business
Independent University, Bangladesh (IUB)

Prepared By:
Group Name: Green Independent
Group Members:

Name ID
Tazul Azam 1420208
Mahmudur Hasan 1420470
Md. Niamot Ullah Sunny 1310864
Arif Arman Sifat 1310193
Sirajum Munira Tanni 1421496

Course Title: Auditing

Course ID: ACN-403

Section: 02

Date of Report Submission: July 29, 2017

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LETTER OF TRANSMITTAL

29th July, 2017

Mr. Ahmed Ataul Hakeem
Lecturer, School of Business

Independent University, Bangladesh (IUB)

Subject: Similarity & Dissimilarity of selected Audit Report.

Dear Sir,
Its my pleasure to submit you our Audit report on Similarity and Dissimilarity
of Raymond Ltd. & Rahim textile mills Ltd.
The job is assigned to our group to fullfill the partial requirement of ACN-403
Subject.We have completed our Audit report and our Audit report is similarity
and dissimilarity of two company. We have furnished our report within time
and all of our member help each other to gather all information to compelete our
report.The report focuses mainly on the imporatce of the similarity and
dissimilarity of two company Audit report.
Would you please kindly accept our paper and oblige me thereby.

Thank you
Sincerely yours,
............................
Tazul Azam (On behalf of Group Members)
Independent University, Bangladesh(IUB)

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 TABLE OF CONTENT

Sl. No Content Page

No
01. Executive Summery 04

02. Introduction 05

03. Objective of this study 06

04. Auditors responsibility 07

05. Background of Raymond LTD (India) 08

06. Background of Rahim Textile Mills Ltd. 09

07. Similarity of Rahim Textile Mills Ltd. and Raymond LTD (India) auditors 10
responsibility
08. Dissimilarity of Rahim Textile Mills Ltd. and Raymond LTD (India) auditors 10
responsibility
09. Auditors Opinion 11

10. Conclusion 12

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EXECUTIVE SUMMERY
Audit report is very essential for a firm for the verification of the information. We have
prepared this report on the basis of audit report. Two firms audit report is observed in this
report. From the two firms, one is national and another one is international. . For this study,
we selected Rahim textile Ltd as the domestic company. That is a private Limited Company
of Bangladesh and another is Raymond LTD which operates in India. Raymond LTD is
Indian multinational garments company. We have analyzed the Audit reports for the
year2015-16 and found out how Auditors conducted Audit, sampling method, Audit report
style, accounting principles, estimates, similarities, and dissimilarities etc.

In this report, there are short descriptions about both of the companies. Raymond is one of
Indias leading fabric and garment manufacturers. The company diversified into the
production of denim fabrics, cotton shirting and garments. It also built up a presence in
retailing and it claims to be Indias largest fabric and garment retailer. Rahim Textile Mills
Limited a well-known public limited company, started commercial operation in 1987 with
dyeing, printing and finishing unit.

We have found some similarities and dissimilarities between the two companies. The
similarities are: Audit reports of Rahim Textile Mills Ltd and Raymond LTD both are
unqualified and prepared in accordance with International Auditing Standards. Audit
procedures of both companies are quite same and both state that auditors have collected
adequate evidence to give opinion.

Some dissimilarities are: the format of both companys audit reports are not same. Audit
report of Raymond LTD is influenced by Indian Companies Act-1913 and audit and
assurance standards of ICAI (Institute of Chartered Accountants of India) whereas audit
report of Rahim Textile Mills Ltd is influenced by Bangladesh Companies Act-1994 and
audit and assurance standards of ICAB (Institute of Chartered Accountants of Bangladesh).
There are some other dissimilarities described in the report.

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INTRODUCTION
The key function of an Audit is to provide companys stockholders with a professional,
independent opinion as to whether the financial statements of the company imitate a true
and fair view of the financial situation of the company and whether they can be relied on.
Auditors give reasonable assurance about the absence of material misstatements in financial
statements. All these are ensured because of the presence of independence, competent skills,
and ethics in Auditors which ensures task to be carried out in an objective manner, instead of
subjective. The Auditors Report is written in a standard format, as delegated by generally
accepted Auditing standards (GAAS). GAAS requires or allows certain distinctions in the
report, depending upon the conditions of the Audit report that the Auditor engaged in. The
audit report is the final product or estimation of the financial statement.

Audit a firm, in the global marketplace, is the major component for business sustainability.
And it is recognized that, the success of the firm depends on the high quality services. So,
the key strategy for customer-focused firms is to monitor and measure customer satisfaction
and service quality. Clients loyalty is another component that is also needed for the firms.
These three type of elements that firms contribution services should strive for. The primary
objective of service provider and marketers is to provide services that satisfy customer needs
and expectations. The satisfaction or dissatisfaction of customers comes arise when they
compare their experiences with their expectations. So, the goal of the service provider
should be to minimize the gap between experiences and expectations.

Our main goal is to observe the appraisal between a domestic firm and international firm.
Developing a quality of service implement initiated in the marketing area and applying
marketing theory to examine audit service quality of the firm and customer satisfaction and
loyalty, this report contributes to both the marketing auditing of both companies.

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OBJECTIVE OF THIS STUDY

Objective of this study is to compare Audit report of one domestic

company and another foreign company of same industry. For this study, we selected Rahim
textile Ltd as the domestic company. That is a private Limited Company of Bangladesh and
another is Raymond LTD which operates in India. Raymond LTD is Indian multinational
garments company. We have analyzed the Audit reports for the year 2015-16 of both the
companies. In Audit report, we looked carefully to find out how Auditors conducted Audit,
sampling method, Audit report style, accounting principles, estimates, similarities, and
dissimilarities etc. At the end of this report, we have also given our opinion about the Audit
reports.

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AUDITORS RESPONSIBILITY

The auditor has responsibility to plan and perform the audit to obtain reasonable assurance
about whether the financial statement are free of material misstatement, whether caused by
error or fraud. Because of the nature of audit evidence and the characteristic of fraud the
auditor is able obtain reasonable but not absolute assurance that material misstatement are
detected. The auditor has no responsibility to plan and perform the audit to obtain reasonable
assurance that misstatement whether caused by errors or fraud that are not material to the
financial statement are detected.

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BACKGROUND OF RAYMOND LTD (INDIA)

INTRODUCTION
Raymond is one of Indias leading fabric and garment manufacturers. In 2006/07 alone its
textile and clothing operations including wholly owned subsidiaries and joint ventures
generated sales of Rs11.1 billion (US$283 million). From its origins and core strengths in
worsted suiting fabrics, the company diversified into the production of denim fabrics, cotton
shirting and garments. It also built up a presence in retailing and it claims to be Indias largest
fabric and garment retailer Commands over 60% market share in worsted suiting in India and
ranks amongst the first three fully integrated manufacturers of worsted suiting in the world.
They claim to be the only company in the world to have a diverse product range of nearly
20,000 design and colors of suiting fabric to suit every age, occasion and style. These are
exported to over 50 countries, including USA, Canada, Europe, Japan and the Middle East.
They have integrated the 4 Ps that is, Product, Place, Price and Promotion into
their marketing strategy so soundly that it virtually ensures that this age old company will
continue to reign over the fabric sector for years to come. This case study explores not just
Raymonds association with the 4 Ps of marketing but contrasts it with the strategies
implemented by its biggest competitors. A 100% subsidiary of Raymond Ltd., Raymond
Apparel Ltd. (RAL) ranks amongst Indias largest and most respected apparel companies.

ADDITIONAL DETAILS:
Public Company
Incorporated: 1925
Employees: 10,000
Sales: INR 173.07 billion ($5.8 billion) (2005)
Stock Exchanges: Mumbai London
Ticker Symbol: RYMDQ

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BACKGROUND OF RAHIM TEXTILE MILLS LTD.

INTRODUCTION
Rahim Textile Mills Limited a well-known public limited company, started commercial
operation in 1987 with dyeing, printing and finishing unit. The company has pioneered the
printing of Viscose, Stretch Poplin, all categories of knit fabric and other textile products. The
company has pioneered for the printing of woven fabric and knit fabric and other textile
products. They has Mon forts Thermos sole dyeing range with E-Control & Kluster
continuous dyeing machine for woven fabric processing, which is truly the class of state of
the art. The products of the processing mill conform to the International standard. We treat all
our affluent before discharge. We are also equipped with the caustic recovery plant. We are
an OEKO-Tax 100 product category, certified company also certified under Organic Content
Standard by Control Union and they have BCI membership.

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SIMILARITY OF RAHIM TEXTILE MILLS LTD. AND
RAYMOND LTD (INDIA) AUDITORS RESPONSIBILITY:

Audit reports of Rahim Textile Mills Ltd and Raymond LTD both are unqualified.
Both reports prepared in accordance with International Auditing Standards.
Both of the reports are issued towards shareholders of respective companies.
Audit procedures of both companies are quite same.
Both audit reports give importance on internal control.
Audit reports of the two company states that auditors have collected adequate
evidence to give opinion.

DISSIMILARITY OF RAHIM TEXTILE MILLS LTD. AND

RAYMOND LTD (INDIA) AUDITORS RESPONSIBILITY:

The format of the audit reports of Rahim Textile Mills Ltd and Raymond LTD are not
same. Audit report of Raymond LTD includes issues regarding legal and other
regulatory requirements whereas audit report of Rahim Textile Mills Ltd doesnt
include these issues.
Audit report of Rahim Textile Mills Ltd consists of one page whereas audit reports of
Raymond LTD consist of four pages.
In the report of Rahim Textile Mills Ltd, responsibility of auditors in defined in scope
paragraph but in the report of Raymond LTD, responsibilities of auditors is defined
under a separate head comprising of five paragraphs.
Auditors of Raymond LTD mentioned inherent limitations of internal financial
controls of the company which is absent in the report of Rahim Textile Mills Ltd.
Audit report of Raymond LTD is influenced by Indian Companies Act-1913 and audit
and assurance standards of ICAI (Institute of Chartered Accountants of India)
whereas audit report of Rahim Textile Mills Ltd is influenced by Bangladesh
Companies Act-1994 and audit and assurance standards of ICAB (Institute of
Chartered Accountants of Bangladesh).

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AUDITORS OPINION

Malek Siddiqui Wali (Chartered Accountants) audited the company of the domestic firm
Rahim textile Mills Ltd. and Anish P Amin audited the foreign company Raymond LTD.
They audited the consolidated financial statements of the group and the separate financial
statements of the company give a true and fair view of the consolidated financial position of
the group and the separate financial position. Both the Auditors have the same opinion of
those companies, unqualified, for their respective clients and both reports prepared in
accordance with International Auditing Standards. This shows that financial statement from
both Rahim textile Mills Ltd. and Raymond LTD had all the required characteristics to be
unqualified.

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CONCLUSION

Audit report is very crucial for the firms. In this report, the importance of audit report can be

seen through the audit reports of both companies. Audit report is important for users of

financial statements because, they provide the information whether it is valid or not. It helps

to take financial decision. Without an audit system, a company would not be able to create

reliable financial reports for internal or external purposes. So, the importance of audit report

cannot be denied. In this report, it shows some similarities and differences between these two

firms reports. It also shows how audit report is important for both of the firm.

THE END
THANK YOU

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