Vinu New Project

VELS SRINIVASA COLLEGE OF ENGINEERING

[Affiliated To Anna University]

THALAMBUR, CHENNAI – 603 103

BONAFIDE CERTIFICATE

Certified that this summer project report titled a study on A STUDY ON FINANCIAL PER

FORMANCE IN TITAN INDUSTRIES LTD, HOSUR (WATCH DIVISION) is the

bonafide work of Mr. E. VINU Registration Number: 31609631044 who carried out the

research under my supervision. Certified further, that to the best of my knowledge the work

reported herein does not form part of any other project report or dissertation on the basis of

which a degree or award was conferred on an earlier occasion on this or any other candidate.

MR. P. PERIASAMY MRS.SHANMUGA PRIYA

Internal Guide Head of the Department

Submitted to Project and Viva Examination held on___________________

Internal Examiner External Examine

DECLARATION

I hereby declare that the project work entitled “A Study on FINANCIAL PER

FORMANCE IN TITAN INDUSTRIES LTD, HOSUR(WATCH DIVISION) is the

original work done by me submitted to Anna University in Partial fulfillment of requirement

for award of Master of Business Administration in Marketing record of original work done by

me under the supervision of Mr. P. PERIASAMY Assistant Professor, Internal guide,

Department of Management Studies Vels Srinivasa College of Engineering and Technology.

Place:

Date: E.VINU

ABSTRACT

The topic is taken for the study is “A STUDY ON FINANCIAL PERFORMANCE

OF TITAN INDUSTRIES LIMITED (WATCH DIVISION) – HOSUR. The information in

order to analysis the data is taken form the previous year.

TITAN INDUSTRIES is india’s leading manufactures of

watches. It’s world’s sixth largest manufacturer of brand watches. The company has

manufacturing and assembly operations at hosur, dehradun and himachal Pradesh. Apart from

the titan edge, titan also offers steel, regalia, raga, fastrack, technology, nebula, bandhan and

sonata along with its premium watch brand xylys.

The objective of the study is to analysis the profitability of the

company and to analysis the ratios of the company. Identify whether the company have

growth potential and sound financial basic, to analysis the trend percentage.

This study is used on analytical in nature . the data needed for the

present study have beeh collected through the secondary data. The toole used for the study

is ratios, analysis of working capital and fund flow.

The cash balance level of the company when compared to current

liabilities is to minimum and the management may improve the cash balance to an

optimum level to meet the contingencies.

ACKNOWLEDGEMENT

I express my sincere gratitude to Principal Dr. V. Kanakasabai, M.E., PhD Vels

Srinivasa College of Engineering and Technology for his valuable suggestion and

encouragement during the project.

I would like to thank to MRS. V. SHANMUGAPRIYA, MBA, M.PHIL Head of the

Department of Management studies, and Vels Srinivasa College of Engineering and

Technology for giving me this opportunity to undertake this project task.

I express my sincere thanks to MR. P.PERIASAMY Asst Professor, internal guide

Vels Srinivasa College of Engineering and Technology for her able and constant guidance

that made this project work attain its present shape.

I wish to express my deep sense of gratitude to other staff members in the

Department, Vels Srinivasa College of Engineering and Technology for their valuable

suggestions and encouragement during the project.

I wish to express my deep sense of gratitude to Mr. C. SHEKAR, Manager, for

giving me this opportunity to undertake this project task

In conclusion, I would like to express my sincere thanks to my family members,

friends and one and all of those who rendered their valuable assistance, in bringing out this

project work a successful one.

E.VINU

TABLE OF CONTENTS

S.NO TOPICS PAGE NO

1 CHAPTER – 1: INTRODUCTION

1.1. INTRODUCTION ABOUT THE STUDY

1.2.SCOPE OF THE STUDY

1.3.LIMITATIONS OF THE STUDY

1.4.OBJECTIVES OF THE STUDY

1.5.RESEARCH METHODOLOGY

2 CHAPTER – 2: PROFILES

2.1.INDUSTRY PROFILE

2.2. COMPANY PROFILE

2.3.PRODUCT PROFILE

3 CHAPTER – 3: LITERATURE SURVEY

3.1. REVIEW OF LITERATURE

4 CHAPTER -4: DATA ANALYSIS &

INTERPRETATION

4.1.ANALYSIS PART-1

4.2.ANALYSIS PART-2

5 CHAPTER – 5: CONCLUSIONS

5.1.RESULTS & DISCUSSIONS

5.2.DIRECTIONS FOR FURTHER RESEARCH

5.3.LIMITATION

5.4. CONCLUSION

5.5. SUGGESTION

BIBLIOGRAPHY

APPENDIX

LIST OF TABLES

S.NO TITLE PAGE NO.

4.1.1 Gross profit ratio

4.1.2 Net profit ratio

4.1.3 Operating profit ratio

4.1.4 Earnings per share

4.1.5 Current ratio

4.1.6 Inventory turnover ratio

4.1.7 Working capital turnover ratio

4.1.8 Dept-equity ratio

4.1.9 Fixed asset ratio

4.1.10 Proprietary ratio

4.1.11 Trend percentage of net profit

4.1.12 Trend percentage of sales

4.1.13 Trend percentage of current asset

4.2.1 Comparative Balance sheets of 2005-2006





4.2.6 Common size balance sheets of 2005-2006





LIST OF CHARTS

S.NO TITLE PAGE NO.

4.1.1 Gross profit ratio

4.1.2 Net profit ratio

4.1.3 Operating profit ratio

4.1.4 Earnings per share

4.1.5 Current ratio

4.1.6 Inventory turnover ratio

4.1.7 Working capital turnover ratio

4.1.8 Dept-equity ratio

4.1.9 Fixed asset ratio

4.1.10 Proprietary ratio

4.1.11 Trend percentage of net profit

4.1.12 Trend percentage of sales

4.1.13 Trend percentage of current asset

Chapter 1

INTRODUCTION

CHAPTER- 1

INTRODUCTION

1.1. INTRODUCTION ABOUT THE STUDY

Finance is regarded as the lifeblood of a business enterprise. In general,

finance may be defined as a provision of money at the time it is wanted. “business

finance can broadly be defined as the activity concerned with planning, raising ,

controlling and administering of the funds used in the business”.

DEFINITION

According to Solomon, financial management is concerned with the efficient

use of an important economic resource, namely, capital funds.

According to philippauts, “ financial management is concerned

with the management decisions the result in the acquisitions and financing of long

term and short term credits for the firm. As such it deals with the situations that require

selection of an specific assets as well as the problem of size and growth of an

enterprise. The analysis of this decision is based on the expected inflows and outflows

of funds and their effects upon managerial objectives.

CONCEPT OF FINACIAL STATEMENT

Financial statement also called financial report, refers to such statements as it

contains financial information of the enterprise. They are over all general purpose

entity statement as thet report financial position and operation results of an enterprise

business at end of account period. As a matter of fact, these statements reflect the

total of the summary of the books of account.

FINACIAL PERFORMANCE ANALYSIS

The financial statement provides the basic data for financial performance

analysis.

Basic limitation of the traditional financial statement comprising the balance

sheet and the profit and loss account is that they do not give all the information

regarding the financial operation of a firm. Nevertheless, they provide some useful

information to the extent the balance sheet mirrors the financial position on a

particular data in terms of the structure of assets, liabilities and owners equity, and

so on. The profit and loss account shows the results of operations during a certain

period of time in terms of the revenues obtained and the incurred during the year,

the financial statements provide a summarized view of the financial position and

operations of a firm.

Therefore, much can be learnt about a firm from a careful examination of its

financial statements as invaluable documents performance reports. The analysis of

financial statements is, thus, an important aid to financial analysis.

The focus of financial analysis is on key figures in the financial

statements and the significant relationship that exists between them. The analysis of

financial statement is a process of evaluating relationshipbetween component parts of

financial statements to obtain a better understanding of the firm’s position and

performance. The first task of financial analyst is to select the information relevant

to the decision under consideration from the total information contained in the

financial statement. The second step involved in financial analysis is to arrange the

information in a way to highlight significant relationships. The final step is

interpretation and drawing of inferences and conclusion. In brief, financial analysis is

the process of selection, relation, and evaluation.

Ratio analysis

Ratio analysis is one of the techniques of financial analysis where ratios

are used as a yardstick for evaluating the financial condition and performance of a

firm.

Ratios are relationship expressed in mathematical terms between figures,

which are connected with each other in some manner.

Obviously, no purpose will be served by comparing two sets of figures,

which are not at all connected with each other. Moreover absolute are also unfit for

comparison.

Ratios can be expressed in two ways:

Times

When another divided one value, the unit used to express the quotient is

termed as “times”.

Percentage

If the quotient obtained is multiplied by 100, the unit of expression is

termed as “percentage”.

COMPARATIVE FINANCIAL STATEMENTS

Comparative financial statements are these statements which have

been designed in a way so as to provide time perspective to the consideration of

various elements of financial position embodied in such statements. In these

statements figures for two or more periods are placed side by side facilitate

comparison. Both the income statement and balance sheets can be prepared in the

form of comparative financial statement.

COMPARATIVE INCOME STATEMENTS

The income statement discloses net profit and net loss on account of

operations. A comparative income statements will show the absolute figures for

two or more periods, the absolute change from one period to another and if

desired the change in terms of percentages.

COMPARATIVE BALANCE SHEET

Comparative balance sheet as on two or more different dates can

be used for comparing assets and liabilities and finding out any increase or

decrease in those items.

COMMON SIZE FINANCIAL STATEMENT

Common size financial statements are those in which figures

reported are converted into percentages to some common base. In the income

statement the sale figure is assumed to be low and all figures are expressed as a

percentage of sales. Similarly in the balance sheet the total of assets or

liabilities is taken as 100 and all the figures are expressed as percentages of this

total.

TREND PERCENTAGES

Trend percentages are immensely helpful in making a

comparative study of the financial statements for several years. Under this method

trend percentages are calculated for each item of the financial statement taking

the figure of base year as 100. The starting year is usually taken as the base

year. The trend percentages show the relationship of each item with its preceding

year’s percentage. The trend ratios may be compared with industry ratios in

order to know the strong or weak points.

NATURE OF FINANCIAL STATEMENTS

According to the American institute of certified public accountancy

financial statements reflect a combination of recorded in the financial are not

depicted in the financial statements, however material they might be, for example,

fixed assets are shown at cost irrespective of their market or replacement price

since such price is not recorded in the books.

LIMITATIONS OF FINANCIAL STATEMENT

Financial statements are prepared with the object of presenting a

periodical review or report on the progress by the management and deal with the 1) status

of the investments in the business. 2) results achieved during the period under the

review. However these objectives aresubject to certain limitations as given below

1.2.SCOPE OF THE STUDY

The study is conducted mainly to review the financial strength of the

company for a period of 5 years from 2005-2006to 2009-2010 as revealed from the financial

data of the

Company’s annual reports.

This study aims at analyzing three heading of the performance of the that is

1. Ratio analysis.

2. Trend analysis.

3. Comparative statement.

4. Common size statement.

The study is confined to the TITAN INDUSTRIES LIMITED it will be useful for

future research.

1.3.LIMITATIONS OF THE STUDY

1. The analysis was takan from the annual reports. Therefore, is only a limited to

find.

2. Major part of the is concerned with the financial data adequate data was not able

to pool because of the secrecy maintained by the company.

3. The study reveals the findings for the present and its will not reflect the past and

the future.

4. Every tools used in data analysis has certain limitations.

5. The study is limited two months only.

1.4.OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

A study on Financial Performance of Titan Industries Limited (Watch Division)-

HOSUR.

SECONDARY OBJECTIVE

1. To study and analysis the balance sheet Position of the company.

2. To study and analysis profit and loss account of the company.

3. To analysis and financial statement with the help of financial statement

analyzing tools.

4. To find out and suggest better financial plans for improvement .

1.5. RESEARCH METHODOLOGY

Research methodology:

In this chapter the researcher has explained about the methodology adopted for the research study. It covers the objectives, scope of the study, research design and sampling and importance of study, tools of the data collection, tools of analysis, limitation of the study.

Period of study:

The period of the 1st January 2011 to 31st march 2011.

Research design:

To research design used on the study is analytical research. The research has to analyze

the balance sheet, which is a historical data and derive conclusions from it.

Nature of data:

The nature of data used for the study is secondary data. Because the data is collected

from the balance sheet for the analysis part.

Data collection:

The data needed for the study is being collected from the annual reports of five years

2005-06 to 2009-10 the company and which is a secondary data.

Tools used for analysis:

The tools for the study by researcher are follows.

1. Ratio analysis

2. Trend analysis

3. Comparative balance sheet and income statement

4. Common size balance sheet and income statement

CHAPTER 2

PROFILES

2.1.INDUSTRY PROFILE

INDUSTRY PROFILE:

TITAN INDUSTRIES LTD. Is a manufacturing industry which dealt in

manufacturing of “WATCHES, JEWELLERY, EYE WARE” it has also dealt in precision

engineering.

First and the foremost thing is

What is manufacturing industry?

Evolution of manufacturing industry.

WHAT IS MANUFACTURING INDUSTRY?

Manufacturing is the use of machines, tools and labour to produce goods for use or

sale. The term may refer to a range of human activity, from handicraft to high tech, but is

most commonly applied to industrial production, in which raw materials are transformed

into finished goods on a large scale. Such finished goods may be used for manufacturing

other, more complex products, such as aircraft, household appliances or automobiles, or sold

to wholesalers, who in turn sell them to retailers, who then sell them to end users – the

"consumers".

Manufacturing takes turns under all types of economic systems. In a free market

economy, manufacturing is usually directed toward the mass production of products for sale

to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed

by the state to supply a centrally planned economy. In free market economies, manufacturing

occurs under some degree of government regulation.

MANUFACTURING INDUSTRY:

http://en.wikipedia.org/wiki/Regulation

http://en.wikipedia.org/wiki/Planned_economy

http://en.wikipedia.org/wiki/Collectivism#Economics

http://en.wikipedia.org/wiki/Consumer

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Mass_production

http://en.wikipedia.org/wiki/Economic_system

http://en.wikipedia.org/wiki/Consumers

http://en.wikipedia.org/wiki/Retailer

http://en.wikipedia.org/wiki/Wholesale

http://en.wikipedia.org/wiki/Automobile

http://en.wikipedia.org/wiki/Major_appliance

http://en.wikipedia.org/wiki/Aircraft

http://en.wikipedia.org/wiki/Finished_good

http://en.wikipedia.org/wiki/Raw_material

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/High_tech_manufacturing

http://en.wikipedia.org/wiki/Handicraft

http://en.wikipedia.org/wiki/Tool

http://en.wikipedia.org/wiki/Machine

Manufacturing industry refers to those industries which involve in the manufacturing

and processing of items and indulge in either creation of new commodities or in value

addition. The manufacturing industry accounts for a significant share of the industrial sector

in developed countries. The final products can either serves as a finished good for sale to

customers or as intermediate goods used in the production process.

MANUFACTURING INDUSTRY CYCLE:

TYPES OF MANUFACTURING INDUSTRIES:

Chemical industry

http://en.wikipedia.org/wiki/Chemical_industry

Pharmaceutical

Construction

Electronics

Semiconductor

Engineering

Biotechnology

Emerging technologies

Nanotechnology

Synthetic biology, Bioengineering

Energy industry

Food and Beverage

Agribusiness

Brewing industry

Food processing

Industrial design

Interchangeable parts

Metalworking

Smith

Machinist

Machine tools

Cutting tools (metalworking)

Free machining

Tool and die maker

Global steel industry trends

Steel production

Plastics

Telecommunications

Textile manufacturing

Clothing industry

Sail maker

Tent making

Transportation

http://en.wikipedia.org/wiki/Tentmaking

http://en.wikipedia.org/wiki/Sailmaker

http://en.wikipedia.org/wiki/Clothing

http://en.wikipedia.org/wiki/Textile_manufacturing

http://en.wikipedia.org/wiki/Telecommunications

http://en.wikipedia.org/wiki/Plastics

http://en.wikipedia.org/wiki/Steel

http://en.wikipedia.org/wiki/Global_steel_industry_trends

http://en.wikipedia.org/wiki/Tool_and_die_maker

http://en.wikipedia.org/wiki/Free_machining

http://en.wikipedia.org/wiki/Machine_tools

http://en.wikipedia.org/wiki/Machinist

http://en.wikipedia.org/wiki/Smith_(metalwork)

http://en.wikipedia.org/wiki/Metalworking

http://en.wikipedia.org/wiki/Interchangeable_parts

http://en.wikipedia.org/wiki/Industrial_design

http://en.wikipedia.org/wiki/Food_processing

http://en.wikipedia.org/wiki/Brewing_industry

http://en.wikipedia.org/wiki/Agribusiness

http://en.wikipedia.org/wiki/Food_and_Beverage

http://en.wikipedia.org/wiki/Energy_industry

http://en.wikipedia.org/wiki/Bioengineering

http://en.wikipedia.org/wiki/Synthetic_biology

http://en.wikipedia.org/wiki/Nanotechnology

http://en.wikipedia.org/wiki/Emerging_technologies

http://en.wikipedia.org/wiki/Biotechnology

http://en.wikipedia.org/wiki/Engineering

http://en.wikipedia.org/wiki/Semiconductor

http://en.wikipedia.org/wiki/Electronics

http://en.wikipedia.org/wiki/Construction

http://en.wikipedia.org/wiki/Pharmaceutical

Aerospace manufacturing

Automotive industry

Bus manufacturing

WORKING OF MANUFACTURING INDUSTRY:

Manufacturing industries are the chief wealth producing sectors of an economy. These

industries use various technologies and methods widely known as manufacturing process

management.

Manufacturing industries are important for an economy as they employ a huge share

of the labour force and produce materials required by sectors of strategic importance such as

national infrastructure and defence. However, not all manufacturing industries are beneficial

to the nation as some of them generate negative externalities with huge social costs. The cost

of letting such industries flourish may even exceed the benefits generated by them.

The National Strategy for Manufacturing prepared by National Manufacturing

Competitiveness Council (NMCC) has identified 20 sectors as having immediate potential for

growth and employment which includes textiles & garments, leather & leather goods, auto-

components, drugs & pharmaceuticals, food processing, telecom equipment; gems &

jewellery, handlooms & handicrafts among others.

CHALLENGES FACED BY MANUFACTURING INDUSTRY:

Pricing.

Material costs and availability.

Competition between capacitor technologies.

The move to value added/application specific products.

Capacity.

Inventory.

The requirement for a global footprint.

The emergence of low-cost suppliers manufacturing, in particular, from China and

Taiwan.

EVOLUTION OF MANUFACTURING INDUSTRY:

http://en.wikipedia.org/wiki/Bus_manufacturing

http://en.wikipedia.org/wiki/Automotive_industry

http://en.wikipedia.org/wiki/Aerospace_manufacturing

Manufacturing industries came into being with the occurrence of technological and

socio-economic transformations in the western countries in the 18th-19th century. This was

widely known as industrial revolution. It began in Britain and replaced the labour intensive

textile production with mechanization and use of fuels.

HISTORY OF MANUFACTURING INDUSTRY:

In its earliest form, manufacturing was usually carried out by a single

skilled artisan with assistants. Training was by apprenticeship. In much of the pre-industrial

world the guild system protected the privileges and trade secrets of urban artisans.

Before the Industrial Revolution, most manufacturing occurred in rural areas,

where household-based manufacturing served as a supplemental subsistence strategy

to agriculture (and continues to do so in places). Entrepreneurs organized a

number of manufacturing households into a single enterprise through the putting-out system.

Toil manufacturing is an arrangement whereby a first firm with specialized

equipment processes raw materials or semi-finished goods for a second firm.

2.2 COMPANY PROFILE

http://en.wikipedia.org/wiki/Putting-out_system

http://en.wikipedia.org/wiki/Agriculture

http://en.wikipedia.org/wiki/Industrial_Revolution

http://en.wikipedia.org/wiki/Guild

http://en.wikipedia.org/wiki/Apprenticeship

http://en.wikipedia.org/wiki/Artisan

2.2.1 HISTORY OF TITAN INDUSTRY:

TITAN is the joint venture between the Tata Group and the

Tamil Nadu Industrial Development Corporation.

TITAN was incorporated on 26 July 1987 at chennai . it was promoted with Questar

Investment ltd.A TATA company associated with sons and TATA press Ltd.

Three major manufacturing Plants

Watch Plants

Jewelry Plants

Bracelet Plants

Three major Divisions

Movement component manufacture

Watch case manufacturing

Watch assembly

TITAN COLLECTION

ORION

Edge

Fraga Flora

Nebula

Das

Zoop

Raga Diva

Automatic TITAN

Royale

Steel

Psi

Type : Joint venture

Industry : Watches

Founded : 1987

Headquarters : Bangalore ,India

Area : served 4 continent and 40 countries India and other countries

Key people : Xerxes Desai, founder

Products : Watches, Jewellery ,Eyewear, Precision Engineering

Employees : 3000

Parent : Tata Group

Website : www.titanworld.com

2.2.2 Titan Technologies Corporation

Titan Technologies, Corporation is a full service network consulting organization.

In addition to providing expertise in all aspects of a Windows 2000, 2003, 2008

network environments, the company also provides both hardware and application

software support.

Titan’s personnel are all Microsoft Certified Professionals who hold ratings from

MCP to MSCE status with security emphasis.

2.2.3. Awards & Accolades

Goldplus bags 2 dragons and 2 certificate of merits at the Promotion marketing

Awards of Asia 2009.

Jewellery Division was declared the winner of the “GOLD AWARD" in FMCG

sector in the GreenTech Environment Excellence Award 2009.

The Corporate Social Responsibilities" award - Best Commercial and Industrial

Institute for 2009 - 10 by the Government of Tamil Nadu.

http://www.titanworld.com/

2.2.4. ORGANISATION STRUCTURE

2.2.5.MERGER OF TITAN AND BENTEX

erdanaOur Company “A” is going for a merger with Company “B”. After merger all

the Employees of Company “B” would be treated as Employee of Company “A”.

I need to study a merger/acquisition that has taken place in the recent past with

specific focus on HR due diligence and the HR aspects of the process involved

2.2.6. Business Overview

In its silver jubilee year, Titan Industries indeed came up with a sterling performance,

in spite of a backdrop of a challenging economic scenario. The recovery of the Indian

economy in the second half of the year is well reflected by our best ever performance,

attributed to initiatives both of revenue growth and cost reduction undertaken by the

Company. Income grew by 22% from Rs.3, 848crores last year to Rs. 4,703crores this year

while Net Profit grew by 57% from Rs. 158.96crores last year to Rs. 250.32crores this year.

The Company was incorporated on 26th July, at Chennai. They manufacture analog

electronic watches with a choice of over 150 designs. The Comp. was promoted jointly by

Questar Investments Ltd., a Tata Comp. with its associates Tata Sons, Ltd., & Tata Press,

Ltd., & Tamil Nadu Industrial Development Corporation, Ltd. [TIDCOs]. The main objective

of Comp. is to manufacture analog electronic watches with a choice of over 150 designs.

The Comp. undertook to set up a plant for manufacture of quartz analog electronic

watches in the State Industries Promotion Corporation of Tamil Nadu, limited Industrial area

at Hosur.

The Comp. entered into a collaboration agreement with France Ebauches [FEs] of

France, manufacturers of watch movements and components, for technical documentation,

assistance in procurement of manufacturing equipments, raw materials, etc.

2.2.7. NATURE OF BUSINESS CARRIED:

M/S Titan Industries Ltd. is basically a manufacturing industry which is dealt in

manufacturing of stylish and the brand watches to satisfy the needs of the public.

Working capital requirement is considerably influenced by the nature of business.

Example: for trading concerns the working capital requirement is more and requirement of

fixed assets will be less. For manufacturing concern requirement of working capital is

moderate and for public utility services like Railways, Hotels, Electricity, Transport the

requirement of working capital is less.

2.2.8. VISION AND MISSION STATEMENTS:

OurVision:

To be a world-class, innovative and progressive organisation and to build India’s most

desirable brands.

OurMission:

To create wealth for all our stakeholders by building highly successful businesses based on a

customer-centric approach, and to contribute to the community.

Our Values and Standards:

Total customer orientation

- Customers take precedence over all else, always.

Employee appreciation

- We value and respect Titanians and endeavour to fulfill their needs and

aspiration.

Performance culture and teamwork

- At Titan Industries, high performance is but a way of life and is nurtured

by teamwork.

2.2.9. WHISTLE BLOWER POLICY

1.Preface

Every employee of a Tata Company shall promptly report to the management any actual or

possible violation of the Code or an event he becomes aware of that could affect the business

or eputation.

2.Definitions

"Audit Committee" means the Audit Committee constituted by the Board of Directors of the

Company in accordance with Section 292A of the Companies Act, 1956 and read with Clause

49 of the Listing Agreement with the Stock Exchanges.

3.Scope

This Policy is an extension of the Tata Code of Conduct. The Whistle Blower's role is that of

a reporting party with reliable information.

4.Eligibility

All Employees of the Company are eligible to make Protected Disclosures under the

Policy. The Protected Disclosures may be in relation to matters concerning the Company or

any other Tata Company.

2.2.10. CODE OF CONDUCT FOR NON-EXECUTIVE DIRECTORS

Non-Executive Directors of the Company should always act in the interest of the

Company. They are to ensure that any other business or personal associations that they have

do not, in any way, involve conflicts of interest with Company operations and the roles they

play.

2.3. PRODUCTS PROFILE:

2.3.1. PRODUCTS:

Titan Industries, best known as India's pioneering manufacturer of quartz watches, has

also etched a niche for itself in some of the most competitive spaces in the fashion industry

such as jewellery and eyewear.

Watches:

Being the world's fifth largest integrated watch manufacturer, Titan Industries has

created and sold more than a 110 million pieces the world over.

With a production rate of over 12 million watches per annum and a customer base of

over 100 million, Titan Industries owns manufacturing and assembly operation centers in

Hosur in Karnataka, Dehradun, Roorkee and Pant Nagar in Uttaranchal, Baddi in Himachal

Pradesh, and an Electronic Circuit Boards (ECB) plant in Goa.

Capturing the important market segments and the changing fashion trends, Titan Industries

has brought forth four core watch brands:

Titan is designed for the mid-premium segment.

Fastrack is crafted to fit the trendy fashion space with a focus on the youth.

Sonata is created for the mass market and has emerged as India’s largest selling watch

brand.

Xylys is fashioned for the premium market, aiming at the high-end connoisseur and

new-age achiever.

The Titan brand architecture comprises several sub-brands, each of which is a market

leader in own space. Notable among them are: Titan Edge, Titan Raga, Nebula, Heritage and

several other collections like WWF, Zoop, Orion, Purple, Obaku and the Automatic series.

The Titan portfolio owns over 60% of the domestic market share in the organized watch

market.

Titan Industries’ pride possession, a world-class design studio for watches and

accessories, is the place where some of the most coveted creations have been conceptualized.

Exclusive World of Titan and Fastrack showrooms and over 12,000 outlets in more

than 2,554 cities in India make these much-sought-after watches available to the buyers. The

watches are also offered internationally in 30 countries, with a special focus on the Middle

East and Asia Pacific regions. The after-sales service, a benchmarked operation with a large

network of exclusive service centers spread across the country, is one of the operation units

with the fastest turnaround time in the world.

Jewellery:

Following the suit of time products, Titan Industries’ Tanishq has been India’s largest,

fastest growing and most popular jewellery brand.

Tanishq offers a premium range of innovatively created gold jewellery with an

aesthetic use of diamonds and precious, semi-precious stones in various hues. Arresting

designs in 22kt pure gold as well as platinum are among the most admired products on the

company’s list. GoldPlus the recent retail plain gold jewellery offering, is specifically created

for semi urban and rural Indian market. The brand offers gold jewellery, as well as unique

designs crafted with diamonds, American diamonds and other precious stones.

Titan Industries boasts of 119 Tanishq boutiques, 2 Zoya stores and 29 Gold Plus

stores in India. The enchanting jewellery patterns that are part of these brands originate in the

well-equipped exclusive jewellery design studio of Titan Industries.

Eye wear:

Titan Eye+ of Titan Industries offers sunglasses under its Fastrack brand. Prescription

eyewear such as lenses and contact lenses is also part of the range. Titan Eye+ offers frames,

sunglasses, and accessories of Titan Industries’ in-house brands as well as other premium

brands.

Precision Engineering:

The Precision Engineering division of Titan Industries supplies precision components

to the aviation and the automotive industry. As an Original Equipment Manufacturer (OEM),

the company makes dashboard clocks for car manufacturers in Europe and America.

2.3.2 BRAND PROFILE OF TITAN:

Edge

Raga

Octane

Zoop

WWF

Heritage

Orion

Nebula

Sonata

Exacta

Spectra

Regalia

Fastrack

Rayale

Classique

Xylys

Titan has built on this principle over the last 15 years, almost year after year:

In 1989, it was Aqura, the trendy range for the youth, colourful, smart and affordable plastic watches for the youth: The other side of Titan for the other side of you.

In 1992, it was Raga, the ethnic range, with striking symbolism from ethnic India, for the sophisticated India woman who appreciated such things.

In 1993, it was Insignia, very distinctive and international-looking top-end watches, for those seeking exclusivity and status.

In 1994, it was psi 2000, rugged, sporty and very masculine watches with serious sports features (200-m mater resistance, high precision chronographs) for those with the penchant for adventure.

In 1996, it was Dash, the cute and colourful range for kids. In 1997, it was Sonata, the affordable, good quality range for the budget-conscious. In 1998, it was Fastrack, the cool, trendy, funky range for the young and young-at-

heart. In 1999, it was Nebula, the sold gold and diamond-studded range of luxury watches

for those affluent people to whom gold is a precious acquisition.

TITAN

Titan is one of India's leading watch brands that brought about a paradigm shift in the

Indian watch market, offering quartz technology with international styling. The Titan

portfolio owns over 60% of the domestic market share in the organized watch market.

The brand Titan is committed to offering its consumers watches that represent the

compass of their imagination. The brand regularly introduces exciting new collections, which

connect with the various facets of deep-rooted human yearnings for self-expression. The new

brand philosophy of Titan, encapsulated in the catchphrase ‘Be More’, touches this as well as

all other aspects of the brand.

The Titan brand architecture comprises several collections and sub-brands, each of

which is a leader in own space. Notable among them are: Titan Edge - world's slimmest

watch based on the philosophy ‘less is more’, Titan Raga - feminine and sensuous accessory

for today's woman, Nebula - crafted with solid 18k gold and precious stones. Several other

popular collections like Heritage, Aviator, Automatic, Regalia, Obaku also form a part of the

Titan portfolio.

The watch division boasts of over 300 exclusive showrooms christened ‘World of

Titan', placing the brand amongst the largest chains in its category backed by over 650 after-

sales-service centres. The division has a world-class design studio that constantly invents new

trends in wrist watches.

SONATA

Sonata, India's largest selling watch brand, offers stylish looks at affordable prices. The

thoughtfully crafted designs encompass the aspirations of young India. The boldness and

uniqueness of each design reflects the confidence of the wearer.

The brand offers a variety of looks, to suit every occasion and every wallet:

Dressy Sona Sitara watches for special occasions

Bold Yuva watches crafted in steel for today’s confident youth

Contemporary Office Wear watches with formal appearance and leather strap

Stylish and Strong Super Fibre watches

FASTRACK

Fastrack was launched in 1998 as a sub-brand of Titan. It was spun off as an

independent brand of watches targeting the urban youth in 2005. Since then, it has carved a

niche for itself with designs that were refreshingly different and affordable. During that time,

Fastrack also extended its footprint into eye gear and in the last 4 years has quickly notched

up the title of being the largest sunglass brand in the country.

Fastrack has now chartered into newer categories – bags, belts, wallets and wrist

bands – as part of its vision to become a complete fashion brand for the youth. With enough

categories to fill up one cool store, Fastrack has ‘moved on’ to open its own stores for its

young consumers. The store is positioned as a complete accessories destination with all

Fastrack gear under one roof. The first store was opened in Pune in 2009. Fastrack plans to

have 100 such stores by 2011.

XYLYS

Xylys, is an exclusive brand of Swiss made watches from Titan.

The tagline (you don’t possess a Xylys, it possesses you), says it succinctly. And if

that doesn’t convince you, one look at a Xylys timepiece will. Crafted and designed with the

legendary Swiss eye for detail and perfection, every Xylys watch is an experience of love at

first sight. Priced between Rs. 8500 and Rs. 24000, the Xylys range of watches comes in

three collections - Contemporary, Classic and Sport and offers over 100 distinctive models.

2.3.3.INTERNATIONAL BRANDS

Tommy Hilfiger Watches

Titan Industries Limited has made Tommy Hilfiger Watches available in India at most

‘World of Titan’ stores, leading multi-brand watch outlets, and department stores like

Shoppers Stop, Central and Lifestyle.

Hugo Boss Watches

Hugo Boss, one of the world’s most popular European brands, has its roots in

Germany. Hugo Boss is known for shoes, accessories, and fragrances. Watches complement

and complete the portfolio. Hugo Boss watches were launched globally early this year. The

Hugo Boss watch designs connote European elegance and couture and are a symbol of power

and sophistication.

Hugo Boss watches are now available in India, thanks to Titan Industries Limited.

2.3.4. AREA OF OPERATION:

The area of operation of M/S TITAN INDUSTRIES LTD. Is as follows-

The manufacturing of the products is limited to national where as in HONGKONG

there is another unit of manufacturing the marketing and the selling and distribution is global

operated activity.

2.3.5. OWNERSHIP PATTERN:

The ownership patter of M/S TITAN INDUSTRIES LTD is shown in the table

below,

DISTRIBUTION OF SHARES ACCORDING TO SIZE, CLASS AND CATEGORIES

OF SHARE HOLDERS AS ON 31ST MARCH 2010

NO OF EQUITY SHARES HELD

NO OF SAHRE HOLDERS

PERCENTAGE

NO. OF SHARES

PERCENTAGE

1-500 46664 96.69% 3949831 8.90%501-2000 1207 2.50% 1022596 2.30%2001-3000 101 0.21% 255149 0.58%3001-4000 41 0.08% 142128 0.32%4001-5000 38 0.08% 175008 0.39%5001-10000 62 0.13% 480762 1.08%10001 and above 151 0.31% 38363834 86.43%TOTAL 48264 100% 44389308 100%

2.3.6. COMPETITORS INFORMATION:

Titan sells around 7 million watches annually,

Timex sells under 1.2 million watches,

Other Brands (all put together sell less than 0.5 million watches)

The Japanese – Citizen, Casio, have been present, while Seiko has not made any

significant moves in India.

The Swiss – Rolex, Omega, Rado, Tissot, Tag, Longines, Cartier, Ebel

The fashion brands – Esprit, Giordano, Tommy Hilfiger,Calvin Klien, Fossil, Swatch.

2.3.7. INFRASTRUCTURAL FACILITIES:

Titan industries provide very good infrastructural facilities to all its employees who

are working in the organisation. And it also provides the canteen and other basic facilities as

well as the safety facilities to its employees. The titan industries also maintain the roads,

parks, other hospitality facilities inside the organisation as well as around the organisation.

For some of the directors and managers the company is providing the accommodation

as well as separate vehicles for transportation.

2.3.8. ACHIVEMENTS OR AWARDS:

Over the years, Titan Industries has received several prestigious awards and

distinctions. Some of the recent and most noteworthy recognitions are:

Titan Industries received the Award for the Most Admired Timewear Brand of the

Year in 2009 for the ninth successive year for Titan and the Most Admired Jewellery

Brand of the Year for the seventh consecutive year for Tanishq.

Goldplus bags 2 dragons and 2 certificates of merits at the Promotion marketing

awards of Asia 2009.

Jewellery Division was declared the winner of the “GOLD AWARD" in FMCG

sector in the GreenTech Environment Excellence Award 2009.

Jewellery Division wins first prize in “Innovation in Supply Chain Management”

organized by Indian Institute of Material Management for the second consecutive year

and ranked amongst the top five amongst 50 global entries at Europen Business

School, Weisbaden Germany .

Titan brand won the “Most Valuable Brand in the State” award at the IIPM & The

Sunday Times STATE EXCELLENCE AWARD.

Jewellery Division of Titan Industries Limited won the Eight Annual Madras

Management Association award on Managerial Excellence for Manufacturing sector.

Titan Industries bagged 19th position across all industry categories and 1st position in

the Retail Industry category in the Economic Times – Great Place to Work Institute

study.

2.3.9.SWOT ANALYSIS:

Appraising a company’s resource strengths and weaknesses and its external

opportunities and threats, commonly known as SWOT analysis, it provides a good overview

of whether its overall situation is fundamentally healthy of unhealthy. SWOT analysis

provides the basis for crafting a strategy that capitalizes in the company’s resources aims

squarely at capturing the company’s best opportunities and defends against the threats to its

well being.

STRENGTHS:

Watches as a fashion accessory.

Quality or price positioning.

Brand image.

Market segments with large potential: woman, youth, children, sportsmen.

Customer value and offered after sales service in a showroom environment.

WEAKNESSES:

Main weakness is the electronic goods become out dated quickly.

The market for the branded watches may be only in the city limits there is less focus

on the branded watches in the rural area.

The illiterates or the uneducated focus on the cost instead of brand name and the

services offered by the company to the customers.

Lack of futuristic approach.

Lack of flexible thinking.

OPPORTUNITIES:

Nearly 34 million watches are sold through gray market channels.

Currently sales in India stand at a low number that is 25 watches per 1000 people

compare with 250 watches per 1000 people in a developed society.

Exchanging offer.

Developing of rural market.

THREATS:

Too many players will dilute the market and the profit margin.

Low priced china watches.

Mobile phones.

Chapter 3

Literature survey

Chapter 3

Literature survey

3.1.REVIEW OF THE LITERATURE

Suresh kumar has studied the financial performance of santha industries. Here

objectives were to study the financial position of the company for period of 5

year from 1989-90 to 1993-94. He concluded that the gross profit ratio is

satisfaction. The firm has been using the capital efficiency.

The current ratio for all the 5 year was below the standard norm 2:1. She suggested

that the company has to increase the investment and should standardize the

accounting procedure.

Ravichandran has studied the ratio analysis of L.G.Balakrishnan and brothrs Ltd,

combatore. His aim was to study the ratio analysis of the company for a period of 5

years 1996-2000. He concluded that the financial position of company was not

continuously study . the rate of the company has a declining trend till 1998-99. He

stressed the need of maintaining a desirable collection and paymend period.

Parvathi in her financial performance analysis of Hindustan photo films, Ooty

says that the gross profit had shown as increasing trend. But the profit decrasing

trend,due to the increase operating cost. It was found the return on net worth and

return on total assets are on the decreasing trend. It has been recommended that an

increase in long-term debts will take advantage of debt capital.

Mohammd Ali in his financial performance analysis of Stanes and company Ltd

says that profitability does not show satisfactory position. The company has to

concentrate on profitability. The current ratio shows there is an inadequate short-

term fund .he suggested that the company must utilize its capital and assets to a

greater extent to increase its returns.

Chapter 4Data Analysis and Interpretation

4.1.ANALYSIS PART-1

4.1. DATA ANALYSIS AND INTERPRETATION

METHODOLOGY ANALYSIS:

RATIO-INTRODUCTION:

Ratio analysis is on the techniques of financial analysis where ratios are

used as a yardstick for evaluating the financial condition and performance of a firm.

Analysis and interpretation of various accounting rations gives a skilled and

experienced analysis, a better understanding of the financial conditions and

performance of the firm than what he could have obtained a perusal financial

statements.

MEANING:

Rations are relationship expressed in mathematical terms between figures,

which are connected with each other in some manner. Obviously, no purpose will be

served by comparing two sets of figures, which are not at all connected with each

other. Moreover rations can be expressed in two ways:

1.TIMES

When another divided one value, the unit used to express the quotient is termed

as “ times”

2.PERCENTAGE

If the quotient obtained is multiplied by 100 , the unit of expression is termed

as “percentages”

According ratios are , mathematical relationships expressed between

interconnected accounting figures.

Chapter-4

TABLE-4.1.1

PROFITABILITY RATIO :

4.1.1.GROSS PROFIT RATIO:

It is the relationship gross profit and sales. This ratio can be obtained by deduction cost of goods sold from sales, it expressed in percentage.

Formula:

Gross profit ratio = gross profit/net sales*100

year Gross profit sales ratio

2005-06 364.22 1468.73 24.80

2006-07 340.27 2135.47 15.93

2007-08 409.54 3050.85 13.42

2008-09 725.93 3881.75 18.70

2009-10 842.85 4674.42 18.03

SOURCES: annual report(2005-2010)

INTERPRETATION:

From the above table shows that the gross profit ratio for the year 2005-06 is 24.80

In the year 2006-07 it decreases to 15.93. In the year 2007-08 it decreases to 13.42 and in the year 2008-09 there is to an increases in 18.70. in the year 2009-10 is 18.03 increases in past 3year.

TABLE-4.1.2s


4.1.2.NET PROFIT RATIO:

It is the relationship net profits after tax and net sales. It is calculation after excluding non-operating expenses . it is used to measures the efficiency and overall profitability of the organization.

Formula:

Net profit ratio = Net profit/ sales*100

year Net profit sales ratio

2005-06 73.63 1468.73 5.07

2006-07 94.13 2135.47 4.40

2007-08 150.27 3050.85 4.93

2008-09 158.96 3881.75 4.09

2009-10 250.32 4674.42 5.35


INTERPRETATION:

From the above table shows that the Net profit ratio for the year 2005-06 is 5.01

In the year 2006-07 it decreases to 4.40. In the year 2007-08 it decreases to 4.93 and in the year 2008-09 there is to an decreases in 4.09. in the year 2009-10 is 5.35 increases in past 3year.

TABLE-4.1.3


4.1.3.OPERATING RATIO:

It is the ratio of profit made from operating source to the sales, usually

Shown as a percentage .

Formula:

Operating profit ratio = operating profit/ sales*100

year operating profit sales ratio

2005-06 148.00 1468.73 10.07

2006-07 185.59 2135.47 8.690

2007-08 265.28 3050.85 8.695

2008-09 346.68 3881.75 8.931

2009-10 436.30 4674.42 9.333


INTERPRETATION:

From the above table shows that the operating profit ratio for the year 2005-06 is 10.07.

In the year 2006-07 it decreases to 8.690. In the year 2007-08 it decreases to 8.695 and in the year 2008-09 there is to an increases in 8.931. in the year 2009-10 is 9.333 increases in past 3year.

TABLE-4.1.4


4.1.4.EARNINING PER SHARE:

In order to avoid confusion on account of their varied meaning of the item capital employed.

Formula:

=Net profit - preference dividend/ no of equity shares

Year Net profit preference dividend

No of equity shares

ratio

2005-06 232.58-2.72=229.86 80.00 2.873

2006-07 327.06 80.00 4.088

2007-08 436.17 80.00 5.452

2008-09 551.24 80.00 6.890

2009-10 724.38 80.00 9.279


INTERPRETATION:

The Earning per share helps in determining the market price of Equity Share of the company . Initially the EPS was low (0.09) in the period 2005-2006. And in the period 2009-2010 increases in 9.279. which is higher than the past 4year.

TABLE-4.1.5

SHORT-TERM SOLVENCY (OR)LIQUIDITY RATIO :

4.1.5.CURRENT RATIO:

Current ratio expresses the relationship of current asset to current liabilities.

Formula:

Current ratio =current asset/ current liability

Year Current asset Current liabilities ratio

2005-06 653.76 390.61 1.673

2006-07 999.83 723.22 1.32

2007-08 1280.79 916.58 1.770

2008-09 1492.42 1067.44 1.398

2009-10 1821.65 1307.02 1.394


INTERPRETATION:

From the above table shows that the current ratio for the year 2005-06 is 1.673.

In the year 2006-2007 it decrease to 1.32. In the year 2007-2008 It increases to 1.770 and in the year 2008-2009 there is decreases in 1.398 is 2009-2010 which is lesser than the past 4 year .the current ratio of the remaining years is nearest to the Idle ratio .Although there is hard and fast rule conventionally , a current ratio of 2:1 considered satisfactory.

TABLE-4.1.6

TURNOVER RATIO :

4.1.6. INVENTORY TURNOVER RATIO:

It is also called as stock velocity ratio. It is calculated to ascertain the efficiency of inventory management in items of capital investment. It shows the relationship between the cost goods sold and the amount of average inventory.

Formula:

Inventory turnover ratio = cost of goods sold/Average inventory

Cost of goods sold=sales-gross profit

Average inventory=opening stock + closing stock/2

Year Cost of Good Sold Average Inventory

Ratio

2005-06 1320.73 187.195 7.055

2006-07 1949.86 338.74 5.756

2007-08 2785.58 510.545 5.456

2008-09 5835.06 601.345 5.828

2009-10 4238.12 670.165 6.324


INTERPRETATION:

From the above table shows that the Inventory turnover ratio for the year 2005-06 is 7.055.

In the year 2006-2007 it decrease to 5.756. In the year 2007-2008 It decreases to 5.456 It increases to 5.828 and in the year 2008-2009 there is to an increase in 6.345 in the year 2009-2010 is post 3 years.

TABLE-4.1.7

4.1.7.WORKING CAPITAL TURNOVER RATIO :

This represents the number of the working capital is turned over in a year. High ratio represents efficiency utilization of working capital.

Formula:

Working capital turnover ratio=sales/working capital

Year sales Working capital Ratio

2005-06 1468.73 263.15 5.58

2006-07 2135.47 276.11 7.73

2007-08 3050.75 364.21 8.38

2008-09 3881.75 424.98 9.13

2009-10 4674.42 514.63 9.08


INTERPRETATION:

From the above table shows that the working capital turn ratio for the year 2005-06 is 5.58.

In the year 2006-2007 it Increase to 7.78. In the year 2007-2008 It Increases to 8.38 and in the year 2008-2009 there is to an increase in 9.13 in the year 2009-2010 is 9.08 which is higher than the post 3 years.

TABLE-4.1.8

LOND-TERM SOLVENCY RATIO:

4.1.8.DEBT EQUITY RATIO :

The debt-equity ratio is determined to ascertain the soundness of the long-term financial policies of the company . it is also known as “External-Internal equities refer to shareholder fund or the tangible net worth(as used in the perform a balance sheet given in the preceding chapter).In is considered to be quite satisfactory.

Formula:

Debt equity Ratio=Long term debts/share holders funds

Year Long term debts Share holders funds

Ratio

2005-06 267.93 232.58 1.15

2006-07 247.01 327.45 0.75

2007-08 257.89 436.17 0.59

2008-09 178.47 551.24 0.32

2009-10 72.79 724.38 0.10


INTERPRETATION:

From the above table shows that the debt equity ratio for the year 2005-06 is 1.15.

In the year 2006-2007 it decrease to 0.75. In the year 2007-2008 It decreases to 0.59 and in the year 2008-2009 there is to an decrease in 0.32 in the year 2009-2010 is 0.10 decreases in post 3 years.

TABLE-4.1.9

4.1.9.FIXED ASSET RATIO :

The objectives of calculating this ratio is ascertain the proportion of long term fund invested in fixed asset.

Formula:

Fixed asset Ratio=Fixed assets/long term funds

Year Fixed asset Long term funds Ratio

2005-06 176.46 82.28 2.144

2006-07 251.15 44.39 5.657

2007-08 274.46 44.39 6.182

2008-09 274.48 44.39 6.183

2009-10 262.63 44.39 5.916


INTERPRETATION:

From the above table shows that the fixed asset ratio for the year 2005-06 is 2.144.

In the year 2006-2007 it increase to 5.657. In the year 2007-2008 It increases to 6.182 and in the year 2008-2009 there is to an increase in 6.183. in the year 2009-2010 is 5.916 increases in post 3 years.

TABLE-4.1.10

4.1.10.PROPRIETORY RATIO :

The Ratio compares the shareholders funds or owner’s funds and total tangible assets. In other words this ratio experesses the relationship between the proprietor’s fund and the total tangible assets.

Formula:

proprietary Ratio=Net worth/total assets

Year Net worth Total assets Ratio

2005-06 232.58 500.49 0.465

2006-07 327.45 574.45 0.570

2007-08 436.17 694.05 0.628

2008-09 551.24 726.64 0.758

2009-10 724.38 797.18 0.909


INTERPRETATION:

From the above table shows that the fixed asset ratio for the year 2005-06 is 1.465.

In the year 2006-2007 it decrease to 0.570. In the year 2007-2008 It increases to 0.628 and in the year 2008-2009 there is to an increase in 0.758. in the year 2009-2010 is 0.909 increases in post 4 years.

TABLE-4.1.11

ANALYSIS OF TREND PERCENTAGE:

4.1.11. TREND PERCENTAGE OF NET PROFIT :

This method is immensely helpful in making a comparative study of the financial statements of several years

Formula:

Trend percentage =(X1/X2) *100

Where X1 =Base year

X2=current

Year NET PROFIT TREND % DIFFERENCE

2005-06 73.63 100 -

2006-07 94.13 78.22 21.78

2007-08 150.27 62.64 15.58

2008-09 158.96 94.53 -31.89

2009-10 250.32 60.30 34.23

SOURCES: annual report (2005-2010)

INTERPRETATION:

Trend percentage of financial statement as base year 2005-2006.Net profit has been increased during the period 2009-2010 profit is 250.32.it’s increases in trend compared previous 4 year.

TABLE-4.1.12


4.1.11. TREND PERCENTAGE OF NET SALES :


Formula:


Where X1 =Base year

X2=current

Year SALES TREND % DIFFERENCE

2005-06 1468.73 100 _

2006-07 2135.47 68.77 31.23

2007-08 3050.85 69.9 -1.13

2008-09 3881.75 78.59 -8.99

2009-10 4674.42 83.04 -4.45

SOURCES: annual report (2005-2010)

INTERPRETATION:

Trend percentage of financial statement as base year 2005-2006.sales has been decreased during the period 2009-2010 sales is -4.45 .it’s decreases in trend compared previous 4 year.

TABLE-4.1.13


4.1.13. TREND PERCENTAGE OF CURRENT ASSET :


Formula:


Where X1 =Base year

X2=current

Year CURRENT ASSET TREND % DIFFERENCE

2005-06 653.76 100 _

2006-07 999.83 65.38 34.62

2007-08 1280.79 78.06 -12.68

2008-09 1492.42 85.81 -7.75

2009-10 1821.65 81.92 3.89


INTERPRETATION:

Trend percentage of financial statement as base year 2005-2006.current asset has been increased during the period 2009-2010 current asset is 1821.65.it’s increases in trend compared previous 4 year.

4.2.ANALYSIS PART-2

TABLE -4.2.1

Comparative balance sheets of 2005-2006

Particulars 2005 2006 Increase/ Decrease

Percentage

CURRENT ASSET

Inventories

Sundry debtorsCash at bank

Total CA(A)

FIXED ASSETS

Land & Building

Plant & Machinery

FurnitureVehicles

Total FA(B)

Total (A +B)

Liabilities, share capital

Share capital

Reserve & surplus

Deferred liabilitiesLoan fund:

Secured loan

Unsecured loanCurrent liabilities

Provisions

TOTAL L FUNDS

TOTAL(A+B)

TABLE -4.2.2



Percentage

CURRENT ASSET

Inventories


Total CA(A)

FIXED ASSETS

Land & Building

Plant & Machinery

FurnitureVehicles

Total FA(B)

Total (A +B)


Share capital

Reserve & surplus


Secured loan


Provisions

TOTAL L FUNDS

TOTAL(A+B)

TABLE -4.2.3



Percentage

CURRENT ASSET

Inventories


Total CA(A)

FIXED ASSETS

Land & Building

Plant & Machinery

FurnitureVehicles

Total FA(B)

Total (A +B)


Share capital

Reserve & surplus


Secured loan


Provisions

TOTAL L FUNDS

TOTAL(A+B)

TABLE -4.2.4



Percentage

CURRENT ASSET

Inventories


Total CA(A)

FIXED ASSETS

Land & Building

Plant & Machinery

FurnitureVehicles

Total FA(B)

Total (A +B)


Share capital

Reserve & surplus


Secured loan


Provisions

TOTAL L FUNDS

TOTAL(A+B)

TABLE -4.2.5



Percentage

CURRENT ASSET

Inventories


Total CA(A)

FIXED ASSETS

Land & Building

Plant & Machinery

FurnitureVehicles

Total FA(B)

Total (A +B)


Share capital

Reserve & surplus


Secured loan


Provisions

TOTAL L FUNDS

TOTAL(A+B)

TABLE

COMMON SIZE BALANCE SHEET

COMMON SIZE BALANCE SHEET FOR THE YEAR END 31

Particulars 2005 Percentage (%) 2006 Percentage (%)CURRENT ASSETSInventoriesSundry debtorsCash at bankTotal Current Asset (A)FIXED ASSETSGross block(-)DepreciationTotal Fixed Asset(B)Other AssetsAdvancesInvestmentsLoansMisc. expensesTotal of Other Assets(A+B+C)LIABILITIESCurrent liabilitiesProvisionsTotal Current Liabilities (A)Other LiabilitiesShare capitalReserve & SurplusDeferred liabilitiesSecured loanUn secured loanTotal of Other LiabilitiesTOTAL LIBILITIES (A+B)

TABLE




TABLE




TABLE




TABLE




CHAPTER – 5

CHAPTER – 5

5.1.FINDINGS

Gross profit ratio 2005-2006 the basic value is 24.80 and 2009-2010 is decreased to 18.03.

Net profit ratio 2005-2006 the basic value is 5.01 and 2009-2010 is increased to 5.35.

Operating profit 2005-2006 the basic value is 10.07 and 2009-2010 is decreased is decreased to 9.333.

Earnings per share 2005-2006 the basic value is 2.873 and 2009-2010 is increased to 9.279

Current ratio 2005-2006 the basic value is 1.673 and 2009-2010 is decreased to 1.394.

Inventory turnover ratio 2005-2006 the basic value is 7.055 and 2009-2010 is decreased to 6.324.

Working capital turnover 2005-2006 the basic value is 5.58 and 2009-2010 is increased to 9.08.

Debt –equity ratio 2005-2006 the basic value is 1.15 and 2009-2010 is decreased to 0.10.

Fixed asset ratio 2005-2006 the basic value is 2.144 and 2009-2010 is increased to 5.916.

Proprietary ratio 2005-2006 the basic value is 0.465 and 2009-2010 is increased to 0.909.

Analyzing the trend percentage has been higher growth of Net profit, sales and current asset for the year 2005-2010.

While analyzing the comparison of balance sheet total assets increased from 000% to 000% for the year 2005-2010.

While analyzing the common size balance sheet in Net current assets increased from 000% to 00% for the year 2005-2010.

5.2.RECOMMENDATIONS

The company should try to improve its cash position. There must be an increasing trend in the coming year.

A dynamic market strategy is to be adopted to boost of the sale

The company has to take steps to increase the sales in order to get higher profit.

The debtor’s management is effective which should be continued in the following years.

The company should try to improve its inventory management.

The company should try to investing in more amount of working capital .

The company should reduce the operating expenses by cost reduction in order to increase the Net profit margin.

The company should control the unexpected expenses.

5.3. CONCLUSION

At present the Titan industries limited is becoming more complex because of its dynamic nature. The company financial performance during the year 2009-2010 was the best ever the company should maintain a good effective and

efficient management.

Bet not satisfactory in the cash position. The strength of the

company is proper availability of resources, good environment and employee .

Introduction of innovative new products which would fuel the consumer demand and satisfaction so as to get more sales and more profit thereby increasing the company cash position in future. By implement the above suggestion made along with analysis there is no doubt the company can improve its financial performance.

APPENDICES

Balance sheet as at march 31, (2005 to 2010 )

(Rupees in Lakhs)

particulars 2005 2006 2007 2008 2009 2010

Sources of Fund:Share holders fundShare CapitalReserves & surplusDeferred Tax(Net)Loan Funds

Secured LoansunSecured LoansTotal Application of funds:Fixed AssetsInvestmentsCurrent Assets, Loans & Advances InventoriesSundry debtorsCash & Bank BalancesLoans & AdvancesTotalLess: Current Liabilities & ProvisionsCurrent LiabilitiesProvisionsNet Current AssetsMiscellaneouitursExpenditureTotal

Income Statement for the year (2005 to 2010)

(Rupees in Lakhs)

particulars 2005 2006 2007 2008 2009 2010

Income:

Sales

(Less) Excise dutyNet SalesTotal Income

Expenditure:

Operating &other ExpensesDepreciation

Interest

Total ExpenditurePBT & ExceptionalExceptional itemsPBT

Income taxes

PAT

(Less) Income tax Earlier yearNet profit

Profit b/f

Amt Available

Appropriation

Total

BIBLIOGRAPHY

BOOKS:

Prasana Chandra – Financial management Theory and Practice, Tata McGraw Hill.

T.S. Reddy and Y. Hariprasad Reddy, Management Accounting. Margham publications, Chennai.

S.N.Maheswari, Management accounting Sultan chand & Sons, Educational publishers, New Delhi.

REPORTS:

Annual Report of TITAN INDUSTRIES LIMILED For the year 2005-2006 to 2009-2010.

WEBSITES:

WWW. GOOLE.COM WWW.TITAN WORLD.COM WWW.TITAN INDUSTRIES LTD.COM

http://WWW.TITAN/

http://WWW.TITAN/

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