Ratio Analysis of Titan Company Limited by Vedant Rahatekar

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Ratio Analysis of titan company limited by Vedant Rahatekar
BBA (Savitribai Phule Pune University)
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lOMoARcPSD|19846024
PROJECT REPORT
ON
“A STUDY OF FINANCIAL STATEMENT
AND RATIO ANALYSIS”
AT
TITAN COMPANY LIMITED
-SUBMITTED BY-
VEDANT SANTOSH RAHATEKAR
SYBBA (SEMESTER-3)
-SUBMITTED TO-
SAVITRIBAI PHULE PUNE UNIVERSITY
FOR THE PARTIALFULFILLMENT OF BACHELOR
OF BUSINESS ADMINISTRATION(BBA)
- UNDER THE GUIDENCE OF –
Prof. PALLAVI YEOLEKAR
KTHM COLLEGE, NASHIK-422004

2022-2023
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CERTIFICATE
This is to certify that Mr. VEDANT SANTOSH RAHATEKAR Roll No. [89] has worked
and duly completed his project work for the Degree of Bachelor of Business Administration
under the faculty of Commerce in the subject of Analysis of Financial Statement and Ratio
Analysis and his project is entitled “A STUDYOF FINANCIAL STATEMENT AND
RATIO ANALYSIS AT TITAN COMPANY LIMITED” under my supervision.
I further certify that the entire work has been done by the learner under my guidance and that
no part of it has submitted previously for any degree of diploma of any University.
It is his own work and facts reported by his personal findings and investigation
Date-
Mrs. Ashwini Kohok Dr. V.B. Gaikwad

HOD Principal
Prof. Pallavi Yeolekar

Project Guide

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ACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude to all who have directly
and indirectly contributed to the completion of my project
At the outset of this report I wish to thank the director of our institute DR. V. B.
Gaikwad Sir,my sincere thanks to my project guide, Prof. Pallavi Yeolekar Mam
for her constant guidance and support through the project.
I would like to thank the placement department and faculty members of KTHM
College, Nasik.
Lastly, I am grateful to my parents who have been my mentor and motivators. I

am also thankful to my friends who have been directly or indirectly involved in
successful completion of this project
VEDANT S. RAHATEKAR
(SYBBA)

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DECLARATION
I the undersigned hereby declare that the project report entitled “A STUDY OF
FINANCIALSTATEMENT AND RATIO ANLYSIS” written and submitted by me to
Savitribai Phule Pune University in partial fulfillment of requirements for the award
of degree of Bachelor of Business Administration under the guidance of Prof.
Pallavi Yeolekar Mam is my original work and interpretations drawn therein are
based on material collected by myself.
Place- Nashik
Date- VEDANT S. RAHATEKAR

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INDEX
CHAPTER CONTENTS PAGE NO.
1. EXECUTIVE SUMMARY 1
2. INTRODUCTION 2-3
3. OBJECTIVES OF THE STUDY 4
4. COMPANY PROFILE 5-6
5. RESEARCH METHODOLOGY 7-1
6. DATA ANALYSIS & INTERPRETATIONS 15-22
7. FINDINGS 23
8 SUGGESTION 24
9. CONCLUSION 25
WEBSITES 26

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CHAPTER -1
EXECUTIVE SUMMERY
The project report is to undertaken financial operation and performance of the company year
from 2018 to 2021. This report will provide an assessment and analysis of the profitability.
Liquidity performance and financial position of the company using figure from the financial
statement for the year of march 2018 and 2021
In the analysis financial ratio were used to gain a critical review of the company performance.
The ratio was able to provide a clear view of overall performance of the company.
The project was carried out to study out the “financial position of the Company and our
objective is studying the financial statement, finding the actual capital to be used and
determining the profit and loss of industry.
For this study exploratory research design is used. Secondary data is collected from through
company Magazines, Final report, Annual Report and Reference books. On the basis of the
secondary data analysis and the extensive analysis of the primary data, interpretations were
drawn for the questions and conclusion is drawn.
This organization is a public company, publicly traded company or company limited company.
The project is carried out financial statement analysis with the help of ratio at TITAN
COMPANY LIMITED by help of ratio it shows that company growth wealth of stakeholders
the gives an overview strength and weaknesses of the businesses based on those matrixes from
the balance sheet income statement and financial ratios.
The study of financial statement analysis with the help of ratio at TITAN COMPANY
LIMITED. The performance of the business against the standard by percentile for each financial
ratio.

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CHAPTER -2
INTRODUCTION
Financial statements are key indicators of the health of your business at specific
points in the company’s accounting year and on an ongoing basis. Your
company’s fundamental success is dependent on a complete understanding of these
documents, so we felt that a handy explainer would be useful for anyone wanting
to know more.
There are three main types of financial statement that it is important to be aware
of:
 Profit and loss
 Balance Sheet
 Cash flow statement
Profit and Loss Statement

Your P&L statement (sometimes called income statement) provides a summary
of revenue (company income or turnover, sometimes called “top line”) minus
your cost of sales (direct costs related to production or supply) and minus
expenses/overhead expenditure (other costs and liabilities such as staff, rent, fees,
insurance, marketing, stationery etc.)
This document might also show EBITDA (earnings before interest, tax,
depreciation & amortization) which is basically to take account of other non-
operational and non-cash expenses.
The “bottom line”, i.e. the figure showing whether the company is profitable or
in the red, is established by taking all the costs of doing business (cost of sales,
expenditure and EBITDA)from the revenue.

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Balance Sheet
Whilst the P&L statement shows the profitability of the company over the
course of a given period, the company balance sheet is an indicator of the state
of your company at a specific point in time. It records; -
 your assets (cash, inventory, accounts receivable i.e. money owed to the
company, petty cash, land etc.);
 your liabilities (rent, tax, utilities, debt i.e. money owed to creditors/suppliers,
wages & dividends payable);
 Shareholder funds (the “balance” of retained company earnings not
played out as dividends.
Cash Flow Statement

Your cash flow statement is important as it tells you how much money you have
(or expect to have) in the bank after a given period. It shows where the cash is
coming from and going to, and this data can be used to assess where costs can be
cut or where expenditure may need to be increased.
Here you record; -
1. Sales from operations (client paying receivables)
2. Investments (changes in assets & liabilities)
3. Financing (debt, equity & loans)
It is therefore a bit of a mix between a P&L statement and a Balance Sheet, in

that it takes account of cash on hand (assets, also indicated in the balance sheet)
but also looks at cash income and expenditure as in P&L (though P&L
additionally takes into account expenses incurred but not yet payable).
As can be seen in the example below, the Cash Flow Statement is generally
divided into 3 parts; operating activities (clients paying receivables), investing
activities (changes in assets & liabilities) and financing activities (debt &
equity/loans).

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CHAPTER-3
OBJECTIVES OF THE STUDY
 To Evaluate Company’s performance relating to Financial Statement

analysis.
 To find out the profitability position based on fundamental analysis.
 To find out the liquidity position of TITAN COMPANY LIMITE.

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CHAPTER -4
COMPANY PROFILE
TITAN COMPANY LIMITED is an Indian company that mainly manufactures
fashion accessories such as jewellery, watches and eyewear. Part of the TATA
GROUP and started as a joint venture with the TIDCO, the company has its
corporate headquarters in Electronic City, Bangalore and registered office in
Hosur, Tamil Nadu. Under this company there are FASTTRACK, TANISHQ,
TITAN EYEPLUS, SONATA, and TANEIRA brands comes.
Vision:
“We company create elevating experiences for the people we touch and
significantly impact the world we work in”.
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Mission:
 We will do this through a pioneering spirit and a caring, value-driven culture that
fosters innovation, drives performance and ensures the highest global standards
in everything we do.
 We are committed to satisfy our customers by providing world class quality
products at affordable price.
 We commit ourselves to continue growth, to fulfill the aspirations of our
Customers, Employees & Shareholders & all people related to the company.
Location of Company:
The headquarter located in the India’s corporate capital, electronic city,
Bangalore – Tamil Nadu – 560100.
Financial information: -
 Revenue – ₹29,033 crores (2022)
 Operating income – ₹2,169 (2022)
 Net income – ₹2,169 crores (2022)
 Total assets – ₹13,549 crores (2020)
Total equity – ₹6,579 crores (2020)

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Products: -
Watches, smart watches, jewellery, bags, perfumes, belts, wallets and
eyewear.

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CHAPTER -5
RESEARCH METHODOLOGY
“A careful investigation enquiry especially through search for new facts in any
branch of knowledge.”
Research methodology is a way to systematically solve the research problem. It

may be understood as a science of study how research is done scientifically. The
various steps that are generally adopted by researcher in study his research problem
along with the logic behind them. It is necessary for the researcher to know not
only the research method or techniques but also the methodology.
Thus when we talk of research methodology we not only talk of the research
methods but also consider the logic behind the methods we use in the contest of
our research and explain why we are using a particular method or technique and
why we are not using others so that research are capable of being evaluated either
by research himself or by others.
There is different source of collection data. This is the first stage in statistics.
Before deciding the source to collect the data one has to make a proper planning of
investigation and the purpose of inquiry
 Primary Data: -
Primary data are original and first-hand information. The source of such information
is the individuals and the incidents around them generally.
 Information relating to the project was collected by internet.
 Queries arising in due course of the project brought into the notice of concerned
authority and necessary explanation and solutions are adapted.

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 Secondary Data: -
The source of information through documents concerning individuals and
institutions are known as secondary data or documentary source.
Secondary data is generated with the help of following:
 Annual Report: Majority of information gathered from the annual reports of the
company. These include annual reports of the year, 2018-19, 2019-20 & 2020- 21
 Reference Books: Theory relating to the subject matter and various concepts taken
up from various financial reference books. The company information like history,
Product Profile is collects as per information website, journal paper.
Research Design –
It Includes following Steps

 Calculations of Ratios
 Analyzing & interpreting the ratios.
 Research Findings

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CLASSIFICATION OF RATIOS: -
However, for the convenience purpose, the ratios are classified under following
groups. The functional classification of ratios considers the basis. Aspects of
business activity as under generally ratios are classified on the following
Functional classification.
Ratios can be classified as follows:
1. Liquidity Ratio: - Measure the ability of the enterprise to pay its debts as they
mature,
2. Activity (or turnover) Ratio: - Measure how effectively the enterprise is using
its assets.
3. Profitability Ratio: - Measure management's success, in generating returns
for those who provide capital to the enterprise.
4. Leverage Ratio: - This is calculated to judge the long-term financial position
of the firm. These ratios indicate mix of fund provided by owners and lenders.
• LIQUIDITY GROUP:
Two most important ratios may be calculated under this group.
1) Current Ratio: -
Current Ratio measures short term debt paying ability. It indicates the
availability of current assets in rupee of current liability. A ratio greater than one
means that the firm has more current assets and current claims against them. A
generally acceptable current ratio is 2 to 1.But whether or not a specific Ratio is
satisfactory depends on the nature of the business and
The characteristic of its current assets and liabilities. A current ratio of 2:1 is
supposed to bestandard and ideal.
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Current Asset = (Inventory + Debtors +Cash and Bank Balance +Loan and
Advances) Current Liabilities= (Cash Credit + Creditors +Outstanding
Expenses +Bills Payable) Calculation of Ratio
Current Ratio= Current Asset/ Current Liabilities
2) Liquid Ratio or Acid Test Ratio: -
Liquid Ratio= Current Asset-Inventory/Current Liabilities
A Quick ration is a more penetrating test of liquidity. It is a refined measure of

the short-term debt paying ability by measuring short term liquidity. By excluding
inventories, it concentrates on the really liquid assets, with value that is fairly
certain. Quick Ratio tests the ability of the business to meet its current obligation
even when the sales revenue disappears. A Ratio of 1:1 is considered to represent
a satisfactory current financial condition; however, it does not necessarily imply
sound liquidity position.
• TURNOVER GROUP:
Ratios computed under this group indicate the efficiency of the organization to
use the various kinds of assets by converting them in the form of sales.
Under this group the following classification of ratios are made
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1. Working Capital Turnover Ratio: -
This ratio measures the number of times the working capital is turned over during the
year. Ina way this ratio also throws light on operating cycle (conversion of current
assets into cash) of the company. A low ratio indicates slow moving operating
cycle where as a high level implies that the company’s current assets are utilized
efficiently.
Working Capital Turnover Ratio=Net Sales/Working Capital
2. Inventory or Stock Turnover Ratio: -
This ratio finds out the number of times inventory is turned over on an average in
a year. This ratio is calculated for findings at what extent the inventory has been
utilized
Efficiently and what proportion of Working Capital has been locked up in

inventory. This ratio is a relationship between the cost of goods sold during a
particular period of time and the cost of average inventory during a particular
period. This ratio indicates whether investment in stock is within proper limit or
not.
Cost of Goods Sold = Sales - Gross Profit
Inventory Control Ratio=Cost of Goods Sold/Average
Inventory Average Inventory = Opening
Inventory + Closing Inventory
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1. Fixed Assets Turnover Ratio: -
This ratio indicates the extent to which investments in the fixed asset contribute
towards sales. If compare with a previous period, it indicates whether the
investment in the fixed assets has been judicious or not.
Fixed Asset Turnover Ratio=Net Sales/ Fixed Asset
2. Total Asset Turnover Ratio: -
The ratio indicates the extent to which investments in the total assets contribute
towards sales.
If compare with a previous period, it indicates whether the investment in the total
asset has been judicious or not.
Total Asset Turnover Ratio= Net Sales/ Total Asset
• PROFITABILITY GROUP
Profitability reflects the final result of business operations. Profitability ratios are
calculated measure the operating efficiency of the company. Beside management
of the organization, creditors and owners are also interested in the profitability of
the firm.
1. Gross Profit Ratio: -
The gross profit ratio indicates the relation between production cost and sales
and efficiency with which the goods are produced or purchased. A high gross
profit ratio may indicate that the organization is able to produce or purchase at a
relatively lower cost.
Gross Profit Ratio= Gross Profit/Net Sales *100
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2. Net Profit Ratio: -
This ratio is the overall measure of the firm’s ability to turn each rupee sales into
Net profit. If the net margin is inadequate, the firm will fail to achieve satisfactory
return on shareholder funds. This ratio also indicates the firm’s capacity to with
stand adverse economic conditions.
A firm with a higher net margin ratio would advantage position to survive in the
face of falling selling price, rising cost of production or decline demand for the
product of net profit
Net Profit Ratio=Net Profit/Net Sales*100
3. Return on Assets: -
Return on assets measures the profitability of the investment in a firm. As such

higher return on assets will always be preferred. However, Return on assets does
not indicate the profitability of various sources of funds, which finance total
assets.
Return on Assets= Net Profit / Assets * 100
4. Return on Capital Employed: -
The prime objective of making investments in any business is to obtain satisfactory

return on capital invested. Hence, the return on capital employed is used as a measure
of success of a business in realizing this objective. Return on capital employed
establishes the relationship between the profit and the capital employed. It indicates
the percentage of return on capital employed in the business and it canbe used to
show the overall profitability and efficiency of the business.
 Gross Capital Employed = Fixed Assets + Current Assets + Investment
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LEVERAGE GROUP
This is calculated to judge the long-term financial position of the firm. These
ratios indicate the extent to which the interest of the person entitled to get a fixed
return or a scheduled repayment s per the agreed term, are safe. The higher the
cover the better it is.
1. Proprietary Ratio: -
This ratio indicates the extent to which the owner s funds are sunk in different
kinds of assets. If the owner s fund exceeds fixed assets, it indicates that a part
owners fund invested in the current assets also and if owners fund are less than
fixed assets.it indicates that the creditors finance a part of fixed assets either by
long term or short term.
Proprietors funds =Equity capital +General reserves +Profit and Loss A/C
2. Debt-Equity Ratio: -
Debt-Equity Ratio= External Liabilities /Shareholders Fund
Debt-equity ratio indicates the state of shareholders or owners in the organization vis-
à-vis that of the creditors. It indicates the cushion available to the creditors on
liquidation of the organization. A high debt-equity ratio may indicate that
financial status of the creditors is more than that of the owners. A very high debt-
equity ratio may make the proportion of investment in the organization a risky
one. On the other hand, a very low debt equity rate may mean that the borrowing
capacity of the
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CHAPTER -6
DATA ANALYSIS
AND
INTERPRETATION
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A. CURRENT RATIO:
= Current Assets / Current L ia bilitie s
CURRENT CURRENT
YEAR ASSETS LIABILITIES RATIO
2017-18 7277.32 2494.62 2.91:1
2018-19 9016.04 2881.04 3.12:1

2019-20 9460.00 2942.00 3.21:1
2020-21 9748.00 2921.00 3.33:1
2021-22 16364.00 3980.00 4.11:1
Current Ratio
4.5
3.5
2.5
1.5
0.5
2017-18 2018-19 2019-20 2020-21 2021-22
Current Ratio
Interpretation :
This ratio indicates the solvency of the business current ratio in 2017–18 is 2.91,
in the year 2018–19 ratio 3.12, in the year 2019-20 ratio 3.21, in the year 2020-21
ratio 3.33, in the year 2021-22 ratio 4.11. The proportion of above current ratios
indicates that the liquidity position of the company is satisfactory. Because of these
current higher than standard these current ratios are higher due to current
assets are more than current liabilities.
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B. GROSS PROFIT RATIO:

= Gross profit/net sales x 100
YEAR GROSS PROFIT NET SALES RATIO
2017 -18 1680.39 15621.30 10.75%
2018 -19 2066.26 19069.97 10.83%
2019 -20 2415.00 20010.00 12.06%
2020-21 1564.00 20602.00 7.59%
2021-22 3279.00 27210.00 12.05%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2017-18 2018-19 2019-20 2020-21 2021-22
Gross Profit Ratio
Interpretation:
The company had good improvement in gross profit Ratio. In the year 2017-18 the ratio
10.75%, in the year 2018-19 = 10.83%, in the year 2019-20 =12.06%, in the year 2020-
21=7.59% and in the year 2021-22 the ratio 12.05%. The improvement is good accept
the year 2020-21 because of worldwide COVID-19 pandemic. After that year the
growth is excellent by the business organization.
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C. NET PROFIT RATIO:
=Profit Before Tax / Net Sales x100
YEAR Profit Before Tax Net Sales Ratio
2017-18 1570.72 15621.30 10.05%
2018-19 1927.37 19069.97 10.10%
2019-20 2105.00 20010.00 10.51%
2020-21 1233.00 20602.00 5.98%
2021-22 2932.00 27210.00 10.77%
NET PROFIT RATIO

2017-18 2018-19 2019-20 2020-21 2021-22
10.77%
10.51%
10.10%
10.05%
5.98%
Interpretation:
The company had good improvement in profit. The improvement is good accept the year
2020-21 the profit ratio was very low at 5.98% because of worldwide COVID-19
pandemic. After that year the growth is excellent by the business organization.
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D. OPERATING PROFIT RATIO:

=Operating Profit / Net Sales x 100
OPERATING
YEAR NET SALES RATIO
PROFIT
2017 -18 1721.07 15621.30 11.01%
2018 -19 2110.71 19069.97 11.06%
2019-20 2564.00 20010.00 12.81%
2020-21 1745.00 20602.00 8.47%
2021-22 3474.00 27210.00 12.76%
Operating Profit Ratio
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2017-18 2018-19 2019-20 2020-21 2021-22
Operating Profit Ratio
Interpretation:
Compared with a previous period, it indicates that the operating profit of the business
organization is improved well. But in the COVID-19 pandemic the profit is lesser than
formal growth. After that period the profit increased very satisfactorily.
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E. TOTAL ASSET TURNOVER R A T I O :

= Net Sales/Total Assets
YEAR NET SALES TOTAL ASSETS RATIO
2017 -18 15621.30 6901.79 2.26:1

2018-19 19069.97 8588.20 2.22:1
2019 -20 20010.00 10246.00 1.95:1

2020-21 20602.00 12939.00 1.59:1
2021-22 27210.00 16157.00 1.68:1
ASSETS TURNOVER RATIO

Assets Turnover Ratio
2.5
1.5
0.5
Interpretation:
In year 2017-18 the maximum ratio (i.e.2.26), in this year the company generating
more revenue as compared to current year (i.e.2019-20,1.95). Due to the huge
investment in current assets and covid-19 pandemic the ratio decreases from 2.26 to
1.59 their implications for the shareholders are that debt is not being exploited to
make available to them the benefit of trading on equity.
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F. EXPENSES RATIO:
= Amount of Expenses / net sales x 100
YEAR AMOUNT OF NET SALES RATIO

EXPENSES
2017 - 18 14911.02 15621.30 95.45%
2018-19 17801.54 19069.97 93.34%
2019 - 20 18428.00 20010.00 92.09%
2020-21 18874.00 20602.00 91.61%
2021-22 28450.00 27210.00 104.55%
Expenses Ratio
110.00%
105.00%
100.00%
95.00%
90.00%
85.00%
2017-18 2018-19 2019-20 2020-21 2021-22
Expenses Ratio
Interpretation:
The expenses ratio of the business organization is usually in good manner. accept the year
2021-22 but this is also the good because of the COVID -19 pandemic the organization
improved their marketing and other logistics therefor the expense ratio in the year 2021-
22 is higher.
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G. RETURN ON EQUITY SHAREHOLDER’S FUND:

= Net Profit After Interest & Tax / Shareholder’s Fund x 100
YEAR NET PROFIT AFTER SHAREHOLDER’S RATIO

INTEREST & TAX FUND
2017 -18 2064.83 5193.99 39.75%

2018 -19 2573.83 6181.72 41.63%
2019 -20 2806.00 6825.00 41.11%
2020-21 1765.00 7553.00 23.36%
2021-22 3906.00 9373.00 41.67%
Return on Equity Shareholders Fund

45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2017-18 2018-19 2019-20 2020-21 2021-22
Return on Equity Shareholders Fund
Interpretation:
This ratio shows the earning or the return on equity shareholder’s fund is very good
in the figure. In current year ratio was much increased as compared previous year
returns are more and it denotes that the higher profitability.
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CHAPTER-7
FINDINGS
 Company gross profit has decrease at last year as compared to last Two previous years
because of purchasing cost is large as compared to the sales and increasing production cost
as compared to previous year.
 Company net profit has increased because earnings are more at current year as compared
to the previous year.
 Current ratio indicates the coverage of current asset is large to the current liabilities and
there is large investment in current asset.
 The business organization had the excellent gross profit growth in last 3 years. But in the
2020-21 the gross profit is very poor in figures due to COVID-19 pandemic.
 Similarly, in net profit also had good growth and in the year 2020-21the net profit is
similarly lesser.
 The expenses of the business organization is usually in good manner . accept the year 2021-
22 but this is also the good because of the COVID -19 pandemic the organization improved
their marketing and other logistics therefor the expense in the year 2021-22 is higher.
 The earning or the return on equity shareholder’s fund is very good in the figure. In current
year ratio was much increased as compared previous year returns are more and it denotes
that the higher profitability.
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CHAPTER-8
SUGGESSION
 Management must concentrate on the profitability of the company as gross

profit ratio and net profit ratio indicates very low profitability due to COVID-
19.
 Management also need to focus on the expenses on the sales.
 Management also needs to concentrate on inventory management due to the

stock is moving slowly.
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CHAPTER-9
CONCLUSION
The primary objective of any business is to profitably grow its revenues. A simple
analysis of ratio analysis will reveal not just the revenue growth but also what makes the
company profitable. Both these factors play an important role in deciding whether
or not to invest in a company.
A competitive advantage is an attribute that allows a company to outperform its

competitors. Competitive advantages allow a company to achieve growth.
Obtaining data from known competitors and comparing it to the company’s ratios can
help the management identify market gaps and elaborate on its competitive advantages.
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WEBSITES
1. www.wikipedia.org
2. www.google.com
3. www.capitalmarket.com
4. www.titan.in
5. www.thestactica.com
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Balance Sheet
as at 31st March 2018
` in lakhs
Particulars Note As at As at
31st March 2018 31st March 2017
ASSETS
(1) Non-current assets
(a) Property, plant and equipment 3 92,107 68,715
(b) Capital work-in-progress 4,081 14,027
(c) Investment property 4 2,268 1,065
(d) Intangible assets 5 3,010 951
(e) Intangible assets under development 36 756
(f) Financial assets
(i) Investments 6.1 73,375 51,160
(ii) Other financial assets 6.2 11,560 8,265
(g) Deferred tax asset (net) 7 4,805 224
(h) Other non-current assets 8 10,600 9,341
(i) Income tax assets (net) 7 10,067 8,142
211,909 162,646
(2) Current assets
(a) Inventories 9 574,920 480,649
(b) Financial assets
(i) Investments 10.1 - 37,453
(ii) Trade receivables 10.2 19,299 11,536
(iii) Cash and cash equivalents 10.3 46,644 67,181
(iv) Bank balances other than (iii) above 10.3 14,584 10,093
(v) Other financial assets 10.4 35,378 51,218
(c) Other current assets 11 36,907 10,977
727,732 669,107
TOTAL ASSETS 939,641 831,753
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 12.1 8,878 8,878
(b) Other equity 12.2 510,521 422,323
TOTAL EQUITY 519,399 431,201
Liabilities
(1) Non-current liabilities
(a) Provisions 13 10,394 10,943
10,394 10,943
(2) Current liabilities
(a) Financial liabilities
(i) Gold on loan 14.1 160,386 186,709
(ii) Trade payables 14.2 78,632 71,066
(iii) Other financial liabilities 14.3 25,125 23,487
(b) Other current liabilities 15 141,410 106,549
(c) Provisions 16 2,125 1,798
(d) Current tax liabilities (net) 2,170 -
409,848 389,609
TOTAL EQUITY AND LIABILITIES 939,641 831,753
Significant accounting policies 2
The notes referred to above form an integral part of the standalone Ind AS financial statements.
As per our report of even date attached
for B S R & Co. LLP for and on behalf of the Board of Directors
Chartered Accountants K Gnanadesikan N.N.Tata
Firm Registration No.: 101248W/W-100022 Chairman Vice Chairman
Supreet Sachdev Ashwani Puri Bhaskar Bhat

Partner Director Managing Director
Membership Number.: 205385
Place: Bengaluru S. Subramaniam A.R.Rajaram

Date: 10th May 2018 Chief Financial Officer Vice President - Legal & Company Secretary
122 / 251
lOMoARcPSD|19846024
Standalone | Financial Statement
Statement of Profit and Loss

for the year ended 31st March 2018
` in lakhs
Particulars Note For the year ended For the year ended
I. Revenue from operations 17 1,565,585 1,299,887
II. Other income 18 8,640 6,477
III. Total income (I +II) 1,574,225 1,306,364
IV. Expenses:
Cost of materials and components consumed 1,024,021 844,938
Excise duty 3,455 10,235
Purchase of stock-in-trade 207,691 112,787
Changes in inventories of finished goods, stock-in-trade and work-in-progress 19 (93,139) (28,847)
Employee benefits expense 20 76,226 69,554
Finance costs 21 4,768 3,713
Depreciation and amortisation expense 22 10,967 9,323
Other expenses 23 173,999 171,682
Total expenses 1,407,988 1,193,385
V. Profit before exceptional item and tax (III - IV) 166,237 112,979
VI. Exceptional items 24 9,165 9,637
VII. Profit before tax (V - VI) 157,072 103,342
VIII. Tax expense:
Current tax 7 44,643 30,000
Deferred tax 7 (3,858) (2,844)
Total tax 40,785 27,156
IX. Profit for the year (VII-VIII) 116,287 76,186
X. Other comprehensive income
(i) Items that will not be reclassified to the statement of profit and loss
- Remeasurement of employee defined benefit plans 2,154 (1,232)
- Income-tax on (i) above (618) 357
(ii) Items that will be reclassified to the statement of profit and loss
- Effective portion of gains and loss on designated portion of
(2,570) 3,411
hedging instruments in a cash flow hedge
- Income-tax on (ii) above 724 (990)
Total other comprehensive income (310) 1,546
XI. Total comprehensive income (IX+X) 115,977 77,732
XII. Earnings per equity share of ` 1:
{based on profit for the year (IX)}
Basic 26 13.10 8.58
Diluted 26 13.10 8.58


123 / 251

lOMoARcPSD|19846024

17-18
Statement of changes in Equity

` in lakhs
Particulars As at As at
(a) Equity share capital
Opening balance 8,878 8,878
Changes in equity share capital during the year - -
Closing balance 8,878 8,878
(b) Other equity

` in lakhs
Reserves and Surplus Total
Capital Capital Securities General Retained Items of Other other
reserve redemption premium reserve earnings Comprehensive Income equity
reserve reserve (refer note 12.2)
Particulars Cash flow Employee
hedge defined
reserve benefit
obligation
Balance as at 1st April 2016 3 64 13,888 230,967 101,222 (1,103) (450) 344,591
Profit for the year (net of taxes) - - - - 76,186 - - 76,186
Other comprehensive income for the year (net of taxes) - - - - - 2,421 (875) 1,546
Total comprehensive income for the year - - - - 76,186 2,421 (875) 77,732
Transfer from Retained Earnings to General Reserve - - - 50,606 (50,606) - - -
Balance as at 31 March 2017 3 64 13,888 281,573 126,802 1,318 (1,325) 422,323
Balance as at 1st April 2017 3 64 13,888 281,573 126,802 1,318 (1,325) 422,323
Other comprehensive income for the year (net of taxes) - - - - - (1,845) 1,536 (309)
Total comprehensive income for the year - - - - 116,287 (1,845) 1,536 115,978
Payment of dividends (refer note 12.3) - - - - (23,081) - - (23,081)
Tax on dividends (refer note 12.3) - - - - (4,699) - - (4,699)
Transfer from Retained Earnings to General Reserve - - - 25,000 (25,000) - - -
Balance as at 31 March 2018 3 64 13,888 306,573 190,309 (527) 211 510,521


124 / 251

lOMoARcPSD|19846024
Statement of Cash Flow

` in lakhs
Particulars For the year ended For the year ended
A. Cash flow from operating activities
Net profit before tax 157,072 103,342
Adjustments for :
- Depreciation and amortization expense 10,967 9,323
- Net unrealised exchange gain (126) 209
- Loss on sale/ disposal/ scrapping of property, plant and 219 823
equipment (net)
- Provision for doubtful trade receivables (net) and bad trade 367 202
receivables written off
- Interest income (6,358) (4,914)
- Net gain on sale of current investments (1,930) (1,047)
- Impairment of investment in subsidiary 7,500 -
- Finance costs 4,768 3,713
Operating profit before working capital changes 172,479 111,651
Adjustments for :
- (increase)/ decrease in trade receivables (8,130) 1,747
- (increase)/ decrease in inventories (94,271) (42,473)
- (increase)/ decrease in other non-current financial assets (3,295) 2,044
- (increase)/ decrease in other non-current assets (1,362) 212
- (increase)/ decrease in other current financial assets 19,399 (7,084)
- (increase)/ decrease in other current assets (23,776) (800)
- increase/ (decrease) in gold on loan (26,323) 77,344
- increase/ (decrease) in trade payables 7,566 17,551
- increase/ (decrease) in other financial liabilities (1,986) 19,457
- increase/ (decrease) in other current liabilities 34,861 23,749
- increase/ (decrease) in long-term provisions (549) 955
- increase/ (decrease) in short-term provisions 327 4
Cash generated from operations 74,940 204,357
- Direct taxes paid (45,016) (27,535)
Net cash from operating activities A 29,924 176,822
B. Cash flow from investing activities
Purchase of property, plant and equipment, intangible assets (26,360) (20,440)
and investment property
Proceeds from sale of property, plant and equipment 301 471
Purchase of investments in subsidiaries, Joint Venture and other (29,702) (43,123)
equity instruments
Inter-corporate deposits placed (67,000) (37,000)
Proceeds inter-corporate deposits 63,500 37,500
Bank deposits placed (4,491) (6,903)
125 / 251

lOMoARcPSD|19846024

17-18
Statement of Cash Flow

` in lakhs
Particulars For the year ended For the year ended
Proceeds from sale of investments, net 39,370 (36,406)
Interest received 6,299 3,866
Net cash used in investing activities B (18,083) (102,035)
C. Cash flow from financing activities
Repayment of borrowings - (11,305)
Dividends paid including dividend distribution tax (27,736) (355)
Finance costs (4,768) (3,713)
Net cash used in financing activities C (32,504) (15,373)
Net cash (used)/ flows during the year (A+B+C) (20,663) 59,414
Cash and cash equivalents (opening balance) (refer note 10.3) 67,181 7,976
Add/ (Less): Unrealised exchange (gain)/ loss 127 (82)
67,308 7,894
Cash and cash equivalents (closing balance) (refer note 10.3) 46,644 67,181
Add/ (Less): Unrealised exchange (gain)/ loss 1 127
46,645 67,308


126 / 251

lOMoARcPSD|19846024
Consolidated Balance Sheet

as at 31 March 2019
` in lakhs
Note As at As at
31 March 2019 31 March 2018
ASSETS
(b) Capital work-in-progress 3 2,895 4,301
(c) Investment property 4.1 2,402 2,268
(d) Goodwill 4.2 12,301 12,301
(e) Other intangible assets 5 23,729 22,608
(f) Intangible assets under development 282 36
(g) Financial assets
(i) Investments 6.1 3,920 3,438
(ii) Loans receivable 6.2 12,913 11,590
(iii) Other financial assets 6.3 812 915
(h) Deferred tax asset (net) 7 7,418 3,606
(j) Other non-current assets 8 15,721 10,834
212,795 192,320
(2) Current assets
(a) Inventories 9 703,882 592,484
(i) Investments 10.1 6,922 161
(v) Loans receivable 10.4 24,660 26,632
(vi) Other financial assets 10.5 9,898 7,334
958,730 760,101
TOTAL ASSETS 1,171,525 952,421
Equity
(b) Other equity 12.2 598,137 500,110
Equity attributable to the equity holders of the Company 607,015 508,988
Non-controlling interest 1,408 (182)
608,423 508,806
Liabilities
(i) Borrowings 13.1 3,167 -
(ii) Other financial liabilities 13.2 133 126
(b) Provisions 14 13,068 11,634
(c) Deferred tax liability (net) 7 541 317
16,909 12,077
(i) Borrowings 15.1 8 7,899
(ii) Gold on loan 15.2 235,290 161,202
(iii) Trade payables
- Total outstanding dues of micro and small enterprises 15.3 1,573 20
- Total outstanding dues of creditors other than micro and small enterprises 15.3 89,025 87,754
(iv) Other financial liabilities 15.4 23,843 25,462
(c) Provisions 17 6,534 2,473
(d) Current tax liabilities (net) 7 970 2,199
546,193 431,538
TOTAL EQUITY AND LIABILITIES 1,171,525 952,421
The notes referred to above form an integral part of the consolidated financial statements.
Chartered Accountants N. N. Tata Vice Chairman
Firm Registration No. : 101248W/W-100022
Ashwani Puri Director
Bhaskar Bhat Managing Director
Supreet Sachdev
Partner S. Subramaniam Chief Financial Officer

Membership Number: 205385
Dinesh Shetty General Counsel and Company Secretary
Place : Bengaluru Place : Bengaluru
Date : 8 May 2019 Date : 8 May 2019
196

2018-19
lOMoARcPSD|19846024
Statement of Consolidated Profit and Loss
Financial Statements > Consolidated

for the year ended 31 March 2019
` in lakhs
Note For the year ended For the year ended
31 March 2019 31 March 2018
II. Other income 19 18,294 8,886
III. Total income (I +II) 1,996,146 1,624,481
IV. Expenses:
Cost of materials and components consumed 1,223,063 1,045,282
Excise duty - 3,618
Employee benefit expenses 21 101,927 88,508
Other expenses 24 237,351 190,378
IV. Total expenses 1,800,241 1,469,561
V. Profit before share of profit/(loss) of an associate and a joint venture and exceptional 195,905 154,920
item and tax (III - IV)
VI. Share of profit/ (loss) of:
- Associate 7 (37)
- Joint venture (223) (240)
VII. Profit before exceptional item and tax (V - VI) 195,689 154,643
VIII. Exceptional item 25 - 1,665
IX. Profit before tax (VII - VIII) 195,689 152,978
X. Tax expense:
Current tax 7 61,750 44,996
Deferred tax 7 (4,926) (2,209)
X. Total tax 56,824 42,787
XI. Profit for the year (IX-X) 138,865 110,191
XII. Other comprehensive income
- Remeasurement of employee defined benefit plans (2,857) 2,273
- Income-tax on (i) above 836 (665)
- Effective portion of gains and loss on designated portion of hedging 4,498 (2,570)
instruments in a cash flow hedge
- Exchange differences in translating the financial statements of foreign operations (5) 410
- income-tax on (ii) above (1,230) 724
Total other comprehensive income 1,242 172
XIII. Total comprehensive income (XI + XII) 140,107 110,363
Profit for the year attributable to:
- Owners of the Company 140,415 113,009
- Non-controlling interest (1,550) (2,818)
138,865 110,191
Other comprehensive income for the year attributable to:
- Owners of the Company 1,259 191
- Non-controlling interest (17) (19)
1,242 172
Total comprehensive income for the year attributable to:
- Owners of the Company 141,674 113,200
- Non-controlling interest (1,567) (2,837)
140,107 110,363
XIV. Earnings per equity share of ` 1
Basic 27 15.82 12.73
Diluted 15.82 12.73
Chartered Accountants N. N. Tata Vice Chairman
Supreet Sachdev

197

lOMoARcPSD|19846024
Statement of Consolidated Changes in Equity

as at 31 March 2019
` in lakhs
As at As at
31 March 2019 31 March 2018
(b) Other equity

` in lakhs
Particulars Reserves and Surplus

Capital Capital Securities Share General Retained Items of Other Comprehensive Income Capital Attributable Non- Total
reserve redemption premium options reserve earnings (refer note 12.2) reserve to the controlling
reserve outstanding Employee Foreign Cash flow Total on Owners interest
account defined benefit currency hedge consolidation of the
obligation translation reserve* Company
reserve
Balance as at 1 April 2017 3 74 14,072 (66) 281,573 118,968 (1,422) (205) 1,326 (301) 37 414,360 2,636 416,996
Profit for the year (net of taxes) - - - - - 113,009 - - - - - 113,009 (2,818) 110,191
Other comprehensive income for the year - - - - - - 1,627 410 (1,846) 191 - 191 (19) 172
(net of taxes)
Addition during the year - - - 330 - - - - - - - 330 19 349
Total comprehensive income for the year - - - 330 - 113,009 1,627 410 (1,846) 191 - 113,531 (2,818) 110,713
Payment of dividends (refer note 12.3) - - - - - (23,081) - - - - - (23,081) - (23,081)
Tax on dividends (refer note 12.3) - - - - - (4,699) - - - - - (4,699) - (4,699)
Transfer to General reserve from Retained - - - - 25,000 (25,000) - - - - - - - -
earnings
Balance as at 31 March 2018 3 74 14,072 264 306,573 179,196 205 205 (520) (110) 37 500,110 (182) 499,928
Balance as at 1 April 2018 3 74 14,072 264 306,573 179,196 205 205 (520) (110) 37 500,110 (182) 499,928
Profit for the year (net of taxes) - - - - - 140,415 - - - - - 140,415 (1,550) 138,865
Other comprehensive income for the year - - - - - - (2,004) (5) 3,268 1,259 - 1,259 (17) 1,242
(net of taxes)
Employee stock compensation - - - 107 - - - - - - - 107 - 107
Acquisition of non-controlling interests in - - - - - (3,157) - - - - - (3,157) 3,157 -
subsidiary (refer note 39)
Sale of subsidiary (refer note 40) - (10) - - - (420) 8 - - 8 (37) (460) - (460)
Total comprehensive income for the year - (10) - 107 - 136,838 (1,996) (5) 3,268 1,267 (37) 138,164 1,590 139,754
Payment of dividends (refer note 12.3) - - - - - (33,292) - - - - - (33,292) - (33,292)
Tax on dividends (refer note 12.3) - - - - - (6,845) - - - - - (6,845) - (6,845)
Transfer to General reserve from - - - - - - - - - - - - - -
Retained earnings
Balance as at 31 March 2019 3 64 14,072 371 306,573 275,897 (1,791) 200 2,748 1,157 - 598,137 1,408 599,545
Significant accounting policies Note 2
Chartered Accountants
N. N. Tata Vice Chairman
Supreet Sachdev

198

2018-19
lOMoARcPSD|19846024
Statement of Consolidated Cash Flow
Financial Statements > Consolidated

as at 31 March 2019
` in lakhs
31 March 2019 31 March 2018
Adjustments for :
- Depreciation and amortisation expense 16,284 13,143
- Net unrealised exchange gain/loss (144) (126)
- Share of profit/(loss) of the associate and joint venture 216 277
- Employee stock compensation expense 107 431
- Loss on sale/ disposal/ scrapping of property, plant and
446 228
equipment (net)
- Gain on investments carried at fair value through profit and loss (4,459) (1,954)
- Impairment of investment in inter-corporate deposits 14,500 -
Adjustments for :
- (increase)/ decrease in trade receivables (13,908) (9,032)
- (increase)/ decrease in financial assets-loans receivable (2,351) 273
- (increase)/ decrease in other financial assets (1,153) (3,144)
- (increase)/ decrease in other assets (27,621) (27,016)
- (increase)/ decrease in other bank balances (390) (41)
- increase/ (decrease) in gold on loan 74,088 (27,041)
- increase/ (decrease) in trade payables 3,232 9,482
- increase/ (decrease) in other financial liabilities 2,093 (1,867)
- increase/ (decrease) in other liabilities 44,642 34,306
- increase/ (decrease) in provisions 2,997 (10)
Cash generated from operating activities before taxes 187,896 40,496
Net cash generated from operating activities A 124,292 (5,112)
Purchase of property, plant and equipment, intangible assets and (26,472) (30,485)
investment property
Proceeds from inter-corporate deposits 79,500 63,500
Bank deposits placed, net (48,719) (4,452)
Purchases of mutual funds, net (3,587) 41,152
Proceeds from sale of investment in subsidiaries net of cash 1,821 -
Net cash from/ (used in) investing activities B (79,834) 9,636
199

lOMoARcPSD|19846024
Statement of Consolidated Cash Flow

as at 31 March 2019
` in lakhs
31 March 2019 31 March 2018
Borrowings taken/ (repayment), net (3,891) 7,899
Dividends paid including dividend distribution tax (39,738) (27,739)
Finance costs (5,254) (5,405)
Net cash (used in)/generated during the year (A+B+C) (4,425) (20,721)
Cash and cash equivalents (opening balance) 10.3 47,205 67,800
Cash and cash equivalents (closing balance) 10.3 42,953 47,205
Debt reconciliation statement in accordance with Ind AS 7
Current borrowings
Opening balance 7,899 -
(Repayment) of / proceeds from borrowings (7,891) 7,899
Closing balance 8 7,899
Non current borrowings and current maturities of long term
borrowings
Opening balance - -
Proceeds from borrowings 4,000 -
Closing balance 4,000 -
Firm Registration No. : 101248W/W-100022 N. N. Tata Vice Chairman

Supreet Sachdev


200

lOMoARcPSD|19846024
Standalone Balance Sheet

as at 31 March 2020
` in lakhs
31 March 2020 31 March 2019
ASSETS
(b) Capital work-in-progress 3 1,072 2,511
(c) Right-of-use assets 4 87,038 -
(d) Investment property 5 2,402 2,402
(e) Intangible assets 6 6,453 3,829
(i) Investments 7.1 90,910 80,670
(ii) Loans receivables 7.2 14,059 11,897
(iii) Other financial assets 7.3 15,850 704
(h) Deferred tax assets (net) 8 17,209 8,476
(j) Other non-current assets 9 6,490 15,143
365,312 238,456
(2) Current assets
(a) Inventories 10 774,062 671,918
(i) Investments 11.1 7,401 6,922
(v) Loans receivables 11.4 5,435 24,404
(vi) Other financial assets 11.5 45,831 9,896
953,483 908,526
TOTAL ASSETS 1,318,795 1,146,982
Equity
(b) Other equity 13.2 673,608 609,294
TOTAL EQUITY 682,486 618,172
Liabilities
(i) Lease liabilities 14.1 96,675 -
(b) Provisions 15 15,246 11,885
111,921 11,885
(i) Borrowings 16.1 62,622 -
(ii) Gold on loan 16.2 150,695 228,763
(iii) Lease liabilities 16.3 16,945 -
(iv) Trade payables
- Total outstanding dues of micro and small enterprises 16.4 6,328 1,483
- Total outstanding dues of creditors other than
micro and small enterprises 44,666 75,751
(v) Other financial liabilities 16.5 19,091 21,401
(c) Provisions 18 10,862 5,834
(d) Current tax liabilities (net) 8 851 851
524,388 516,925
TOTAL EQUITY AND LIABILITIES 1,318,795 1,146,982
See accompanying notes to the standalone financial statements.
As per our report of even date attached for and on behalf of the Board of Directors
For B S R & Co. LLP
Firm Registration No.: 101248W/W-100022 Bhaskar Bhat Director
Supreet Sachdev C K Venkataraman Managing Director
Partner S Subramaniam Chief Financial Officer
Membership Number: 205385 Dinesh Shetty General Counsel & Company Secretary
Place: Bengaluru
Date: 8 June 2020 Date: 8 June 2020
148 Annual Report 2019-20

lOMoARcPSD|19846024
CORPORATE OVERVIEW STATUTORY REPORTS

Standalone
Standalone Statement of Profit and Loss

for the year ended 31 March 2020
` in lakhs
31 March 2020 31 March 2019

II. Other income 20 14,641 17,850
III. TOTAL INCOME (I +II) 2,015,605 1,924,847
IV. Expenses:
Cost of materials and components consumed 1,248,905 1,182,204
Employee benefits expense 22 104,012 87,879
Other expenses 25 203,998 220,179
TOTAL EXPENSES 1,805,108 1,725,110
VI. Exceptional items 26 - 7,000
VIII. Tax expense:
Current tax 8 55,184 60,201
Deferred tax 3,550 (4,900)
TOTAL TAX 58,734 55,301
IX. Profit for the year (VII-VIII) 151,763 137,436
- Remeasurement of employee defined benefit plans (6,898) (2,587)
- Income-tax on (i) above 1,759 792
- Effective portion of gains or (loss) on designated portion of hedging
35.6 (25,523) 4,498
- Income-tax on (ii) above 6,806 (1,230)
TOTAL OTHER COMPREHENSIVE INCOME (23,856) 1,473
Basic 28 17.09 15.48
Diluted 17.09 15.48
For B S R & Co. LLP
Place: Bengaluru
Annual Report 2019-20 149

lOMoARcPSD|19846024
Standalone Statement of changes in equity

as at 31 March 2020
` in lakhs
31 March 2020 31 March 2019

(b) Other equity

` in lakhs
Particulars Reserves and surplus Total other
Capital Capital Securities General Retained Items of other equity
reserve redemption premium reserve earnings comprehensive income
reserve (refer note 13.2)
Cash flow Remeasurement
hedge of employee
reserve defined benefit
plans
Balance as at 1 April 2018 3 64 13,888 306,573 190,309 (527) 211 510,521
Other comprehensive income for the year - - - - - 3,268 (1,795) 1,473
(net of taxes)
Total comprehensive income for the year - - - - 137,436 3,268 (1,795) 138,909
Payment of dividends - - - - (33,292) - - (33,292)
Tax on dividends - - - - (6,845) - - (6,845)
Balance as at 31 March 2019 3 64 13,888 306,573 287,609 2,741 (1,584) 609,294
Balance as at 1 April 2019 3 64 13,888 306,573 287,609 2,741 (1,584) 609,294

Other comprehensive income for the year - - - - - (18,717) (5,139) (23,856)
(net of taxes)
Total comprehensive income for the year - - - - 151,763 (18,717) (5,139) 127,907
Payment of dividends (refer note 13.3) - - - - (44,389) - - (44,389)
Tax on dividends (refer note 13.3) - - - - (9,124) - - (9,124)
Transition impact of Ind AS 116 - - - - (15,558) - - (15,558)
Deferred tax on transition impact of - - - - 5,477 - - 5,477
Ind AS 116 {refer note 8(a)}
Balance as at 31 March 2020 3 64 13,888 306,573 375,779 (15,976) (6,723) 673,608

For B S R & Co. LLP
Place: Bengaluru

lOMoARcPSD|19846024
CORPORATE OVERVIEW STATUTORY REPORTS

Standalone
Standalone Statement of Cash Flow

as at 31 March 2020
` in lakhs
31 March 2020 31 March 2019

Adjustments for :
- Depreciation and amortisation expense 30,969 13,889
- Net unrealised exchange gain (292) (173)
- (Gain)/ loss on sale/ disposal/ scrapping of property, plant and
(315) 422
equipment (net)
- Provision for doubtful trade receivables (net) and bad trade receivables
215 (140)
written off
- Gain on investments carried at fair value through profit and loss (3,128) (4,459)
- Impairment of investment in subsidiary/Inter-corporate deposits (ICDs) - 21,500
- Gain on pre-closure of lease contracts (864) -
Adjustments for :
- (increase)/ decrease in trade receivables 14,369 (16,384)
- (increase)/ decrease in financial assets-loans receivables (1,613) (2,147)
- (increase)/ decrease in other financial assets (34,112) 515
- (increase)/ decrease in other assets 5,312 (27,347)
- (increase)/ decrease in other bank balances 42 (390)
- increase/ (decrease) in gold on loan (78,068) 68,377
- increase/ (decrease) in trade payables (26,297) (1,398)
- increase/ (decrease) in other financial liabilities (28,157) 861
- increase/ (decrease) in other current liabilities 29,486 41,432
- increase/ (decrease) in provisions 3,481 2,613
Cash generated from operating activities before taxes 24,904 187,077
Net cash (used in)/ generated from operating activities A (28,813) 124,899
Purchase of property, plant and equipment, intangible assets and
(31,046) (22,647)
investment property
Purchase of investments in subsidiaries, joint venture and
(10,093) (14,959)
other equity instruments
Loan given to subsidiary (195) -
Proceeds from sale of investment in subdsidiaries - 1,850
Proceeds from inter-corporate deposits 30,000 79,500
Bank deposits matured/ placed, net 33,099 (48,721)
Purchase/ sale of mutual funds, net 2,649 (3,649)
Lease payments received from sub-lease 2,117 -
Net cash from/ (used in) investing activities B 24,225 (91,128)
Annual Report 2019-20 151

lOMoARcPSD|19846024

as at 31 March 2020
` in lakhs
31 March 2020 31 March 2019

Proceeds /(repayment) from borrowings, net 62,622 -
Dividends paid (including dividend distribution tax) (53,555) (39,738)
Payment of lease liabilities excluding interest paid (20,895) -
Finance costs paid (14,948) (4,445)
Net decrease in cash and cash equivalents during the year (A+B+C) (31,364) (10,412)
Cash and cash equivalents (opening balance) (refer note 11.3) 36,405 46,644
Cash and cash equivalents (closing balance) (refer note 11.3) 5,046 36,405
Current borrowings
Opening balance - -
Proceeds /(repayment) from borrowings, net 62,622 -
Closing balance 62,622 -

For B S R & Co. LLP
Place: Bengaluru

152 TITAN COMPANY LIMITED lOMoARcPSD|19846024
Annual Report 2020-21

` in crores
As at As at
Note
ASSETS
(b) Capital work-in-progress 3 17 11
(c) Right-of-use assets 4 854 870
(d) Investment property 5 24 24
(e) Intangible assets 6 55 64
(i) Investments 7.1 759 909
(ii) Loans receivable 7.2 146 141
(h) Deferred tax assets (net) 8 105 172
(i) Income tax assets (net) 8 120 141
(j) Other non-current assets 9 67 65
3,359 3,654
(2) Current assets
(a) Inventories 10 7,984 7,741
(i) Investments 11.1 2,753 74
(ii) Trade receivables 11.2 291 214
(iii) Cash and cash equivalents 11.3 147 50
(iv) Bank balances other than (iii) above 11.3 365 306
(v) Loans receivable 11.4 103 54
(vi) Other financial assets 11.5 187 458
(c) Other current assets 12 671 637
12,501 9,534
TOTAL ASSETS 15,860 13,188
Equity
(a) Equity share capital 13.1 89 89
(b) Other equity 13.2 7,464 6,736
TOTAL EQUITY 7,553 6,825
Liabilities
(i) Lease liabilities 14.1 971 967
(b) Provisions 15 143 152
1,114 1,119
(i) Borrowings 16.1 - 626
(ii) Gold on loan 16.2 4,094 1,507
(iii) Lease liabilities 16.3 178 169
(iv) Trade payables
- Total outstanding dues of micro and small enterprises 16.4 158 63
- Total outstanding dues of creditors other than micro and small 16.4 537 447
enterprises
(v) Other financial liabilities 16.5 218 191
(c) Provisions 18 23 109
7,193 5,244
for B S R & Co. LLP
Chartered Accountants Bhaskar Bhat Director
Firm Registration No.: 101248W/W-100022
C K Venkataraman Managing Director
Supreet Sachdev
S.Subramaniam Chief Financial Officer
Partner
Place: Bengaluru Place: Bengaluru
Date: 29 April 2021 Date: 29 April 2021

lOMoARcPSD|19846024
Standalone 153
01-58
` in crores
For the year ended For the year ended

Note
I. Revenue from operations 19 20,602 20,010
CORPORATE OVERVIEW
II. Other income 20 181 146
III. TOTAL INCOME (I +II) 20,783 20,156
IV. Expenses:
Cost of materials and components consumed 13,143 12,489
Changes in inventories of finished goods, stock-in-trade and work-in-progress 21 164 (836)
Employee benefits expense 22 911 1,040
Finance costs 23 181 149
Depreciation and amortisation expense 24 331 310
Other expenses 25 2,221 2,040
59-141
TOTAL EXPENSES 19,413 18,051
VI. Exceptional items 26 137 -
VIII. Tax expense:
Current tax 8 351 552
Deferred tax 8 5 36
STATUTORY REPORTS
TOTAL TAX EXPENSE 356 588
IX. Profit for the year (VII-VIII) 877 1,517
- Remeasurement of employee defined benefit plans 45 (69)
- Income-tax on (i) above (11) 18
- Effective portion of gains or (loss) on designated portion of hedging 35.6 234 (255)
- Income-tax on (ii) above (62) 68
TOTAL OTHER COMPREHENSIVE INCOME 206 (238)
142-300
XII. Earnings per equity share of ` 1: {based on profit for the year (IX)}
Basic 28 9.88 17.09
Diluted 9.88 17.09
for B S R & Co. LLP FINANCIAL STATEMENTS
Supreet Sachdev
Partner

Standalone Statement of Changes in Equity

(a) Equity share capital ` in crores

As at As at
Opening balance 89 89
Closing balance 89 89
(b) Other equity

Reserves and surplus
Items of other comprehensive
income (refer note 13.2) Total
Capital
Capital Securities General Retained Remeasurement other
redemption
reserve premium reserve earnings Cash flow of employee equity
reserve
hedge reserve defined benefit
plans
Balance as at 1st April 2019 0 1 139 3,066 2,876 27 (16) 6,093
Other comprehensive income for the - - - - - (187) (51) (238)
year (net of taxes)
Total comprehensive income for 0 - - - 1,517 (187) (51) 1,279
the year
Payment of dividends (refer note 13.3) - - - - (444) - - (444)
Tax on dividends (refer note 13.3) - - - - (91) - - (91)
Transition impact of Ind AS 116 - - - - (156) - - (156)
Deferred tax on transition impact of Ind - - - - 55 - - 55
AS 116 {refer note 8(a)}
Balance as at 31st March 2020 0 1 139 3,066 3,757 (160) (67) 6,736
Balance as at 1st April 2020 0 1 139 3,066 3,757 (160) (67) 6,736
Profit for the year (net of taxes) - - - - 877 - - 877
Other comprehensive income for the - - - - - 172 34 206
year (net of taxes)
Total comprehensive income for 0 - - - 877 172 34 1,083
the year
Payment of dividends (refer note 13.3) - - - - (355) - - (355)
Balance as at 31st March 2021 0 1 139 3,066 4,279 12 (33) 7,464

for B S R & Co. LLP
Supreet Sachdev
Partner

lOMoARcPSD|19846024
for B S R & Co. LLP
Supreet Sachdev
Partner

lOMoARcPSD|19846024
Standalone 155
01-58
` in crores
For the For the

Note year ended year ended
CORPORATE OVERVIEW
Adjustments for :
- Depreciation and amortisation expense 331 310
- Net unrealised exchange gain 1 (3)
- (Gain)/ loss on sale/ disposal/ scrapping of property, plant and 6 (3)
equipment (net)
- Interest income (73) (95)
- Gain on investments carried at fair value through profit and loss (34) (31)
59-141
- Gain on sale of investment in joint venture (4) -
- Dividend Income (24) -
- Gain on pre-closure of lease contracts (12) (9)
- Rent waiver (refer note 29) (57) -
- Impairment of investment in subsidiary (refer note 26) 137 -
- Finance costs 181 149
STATUTORY REPORTS
Adjustments for :
- (increase)/ decrease in trade receivables (78) 144
- (increase)/ decrease in inventories (243) (1,021)
- (increase)/ decrease in financial assets-loans receivables (6) (16)
- (increase)/ decrease in other financial assets 245 (341)
- (increase)/ decrease in other assets (34) 53
- increase/ (decrease) in gold on loan 2,587 (781)
- increase/ (decrease) in trade payables 187 (263)
- increase/ (decrease) in other financial liabilities 254 (282)
142-300
- increase/ (decrease) in other current liabilities (218) 295
- increase/ (decrease) in provisions (49) 35
Cash generated from operating activities before taxes 4,364 248
- Direct taxes paid, net (263) (537)
Net cash generated from/ (used in) operating activities A 4,101 (289)
FINANCIAL STATEMENTS


` in crores
For the For the
Note year ended year ended
Purchase of property, plant and equipment, intangible assets and (111) (310)
investment property
Purchase of investments in subsidiaries and other equity instruments (30) (101)
Proceeds from sale of investment in joint venture 43 -
Loan repayment / (given to) received from subsidiary 2 (2)
Investment in non convertible debentures (5) -
Inter-corporate deposits placed (150) (100)
Proceeds from inter-corporate deposits 100 300
Bank deposits (placed) / matured, net (60) 331
(Purchase) / sale of mutual funds, net (2,640) 27
Loan given to Company's franchisees and vendors (97) -
Proceeds from loan given to Company's franchisees and vendors 94 -
Lease payments received from sub-lease (excluding interest received) 19 21
Dividend received from subsidiary 24 -
Interest received 60 69
Net cash (used in)/ from investing activities B (2,744) 243
(Repayment) / proceeds from borrowings, net (626) 626
Dividends paid (including dividend distribution tax as applicable) (355) (536)
Payment of lease liabilities (excluding interest paid) (98) (209)
Finance costs paid (181) (149)
Net cash used in financing activities C (1,260) (268)
Net cash generated / (used in) during the year (A+B+C) 97 (314)
Cash and cash equivalents (opening balance) (refer note 11.3) 50 364
Cash and cash equivalents (closing balance) (refer note 11.3) 147 50
Current borrowings
Opening balance 626 -
(Repayment) / proceeds from borrowings, net (626) 626
Closing balance - 626

for B S R & Co. LLP
Supreet Sachdev
Partner


` in crore
ASSETS
(b) Capital work-in-progress 3 60 17
(c) Right-of-use assets 4 877 854
(d) Investment property 5 1 24
(e) Intangible assets 6 35 55
(i) Investments 7.1 869 759
(ii) Loans receivable 7.2 40 41
(h) Deferred tax assets (net) 8 136 105
(i) Income tax assets (net) 8 135 120
(j) Other non-current assets 9 74 67
3,758 3,359
(2) Current assets
(a) Inventories 10 12,787 7,984
(i) Investments 11.1 15 2,753
(ii) Trade receivables 11.2 495 291
(iii) Cash and cash equivalents 11.3 117 147
(iv) Bank balances other than (iii) above 11.3 932 365
(v) Loans receivable 11.4 419 73
(vi) Other financial assets 11.5 762 217
(c) Other current assets 12 852 671
16,379 12,501
TOTAL ASSETS 20,137 15,860
Equity
(a) Equity share capital 13.1 89 89
(b) Other equity 13.2 9,284 7,464
TOTAL EQUITY 9,373 7,553
Liabilities
(i) Lease liabilities 14.1 1,026 971
(b) Provisions 15 179 143
1,205 1,114
(i) Borrowings 16.1 225 -
(ii) Gold on loan 16.2 5,161 4,094
(iii) Lease liabilities 16.3 193 178
(iv) Trade payables
- Total outstanding dues of micro and small enterprises 16.4 198 158
- Total outstanding dues of creditors other than micro and
small enterprises 16.4 857 537
(v) Other financial liabilities 16.5 429 218
(c) Provisions 18 30 23
9,559 7,193
Firm Registration No.: 101248W/ W-100022 S Krishnan Chairman
N N Tata Vice Chairman
Supreet Sachdev Ashok Sonthalia Chief Financial Officer
Partner Dinesh Shetty General Counsel & Company Secretary
Date: 3rd May 2022 Date: 3rd May 2022

lOMoARcPSD|19846024
Standalone 163
01-60
` in crore
I. Revenue from operations 19 27,210 20,602
II. Other income 20 246 181
CORPORATE OVERVIEW
III. Total income (I +II) 27,456 20,783
IV. Expenses:
Cost of raw materials and components consumed 20,939 13,143
Changes in inventories of finished goods, stock-in-trade and
21 (4,468) 164
work-in-progress
Employee benefits expense 22 1,143 911
Finance costs 23 195 181
Depreciation and amortisation expense 24 347 331
Other expenses 25 2,130 2,221
Total expenses 24,473 19,413
61-149
VI. Exceptional items 26 51 137
VIII. Tax expense:
Current tax 779 351
8
Deferred tax (27) 5
Total tax expense 752 356
IX. Profit for the year (VII-VIII) 2,180 877
STATUTORY REPORTS
- Remeasurement of employee defined benefit plans 9 45
- Income-tax on (i) above (2) (11)
- Effective portion of gains or (loss) on designated portion of hedging
34.6 (16) 234
- Income-tax on (ii) above 4 (62)
Total other comprehensive income (5) 206
150-323
Basic 24.56 9.88
28
Diluted 24.56 9.88

Standalone Statement of Changes in Equity

(a) Equity share capital ` in crore

st st
31 March 2022 31 March 2021
Opening balance 89 89
Changes in equity share capital due to prior period errors - -
Closing balance 89 89
(b) Other equity

Reserves and surplus
Items of other
comprehensive income
Total
Capital (refer note 13.2)
Capital Securities General Retained other
redemption Cash Remeasurement
reserve premium reserve earnings equity
reserve flow of employee
hedge defined benefit
reserve plans
Balance as at 1st April 2020 0 1 139 3,066 3,757 (160) (67) 6,736
Profit for the year (net of taxes) - - - - 877 - - 877
Other comprehensive income - - - - - 172 34 206
for the year (net of taxes)
Total comprehensive income 0 - - - 877 172 34 1,083
for the year
Payment of dividends (refer - - - - (355) - - (355)
note 13.3)
Balance as at 31st March 2021 0 1 139 3,066 4,279 12 (33) 7,464
Balance as at 1st April 2021 0 1 139 3,066 4,279 12 (33) 7,464

Other comprehensive income - - - - - (12) 7 (5)
for the year (net of taxes)
Total comprehensive income 0 - - - 2,180 (12) 7 2,175
for the year
Payment of dividends (refer - - - - (355) - - (355)
note 13.3)
Balance as at 31st March 2022 0 1 139 3,066 6,104 - (26) 9,284

lOMoARcPSD|19846024
Standalone 165
01-60
` in crore
CORPORATE OVERVIEW
Adjustments for :
- Depreciation and amortisation expense 347 331
- Net unrealised exchange gain (1) 1
- Loss on sale/disposal/scrapping of property, plant and equipment (net) 3 6
- Provision for doubtful trade receivables (net) and bad trade
0 34
- Interest income (92) (73)
- Gain on investments carried at fair value through profit and loss (86) (34)
61-149
- Gain on sale of investment in joint venture - (4)
- Dividend Income (24) (24)
- Gain on pre-closure of lease contracts (20) (12)
- Rent waiver (refer note 29) (30) (57)
- Impairment of investment in subsidiary (refer note 26) - 137
- Finance costs 195 181
STATUTORY REPORTS
Adjustments for :
- (increase)/decrease in trade receivables (204) (78)
- (increase)/decrease in inventories (4,803) (243)
- (increase)/decrease in financial assets-loans receivables (1) (6)
- (increase)/decrease in other financial assets (511) 245
- (increase)/decrease in other assets (185) (34)
- increase/(decrease) in gold on loan 1,067 2,587
150-323
- increase/(decrease) in trade payables 362 187
- increase/(decrease) in other financial liabilities 189 254
- increase/(decrease) in other current liabilities 481 (218)
- increase/(decrease) in provisions 51 (49)
Cash (used)/generated from operating activities before taxes (330) 4,364
- Direct taxes paid, net (796) (263)
Net cash (used)/generated from operating activities A (1,126) 4,101


` in crore
Purchase of property, plant and equipment, intangible assets and
(173) (111)
investment property
Purchase of investments in subsidiaries and other equity instruments (169) (30)
Proceeds from sale of investment in joint venture - 43
Loan repayment/(given to) received from subsidiary - 2
Investment in non convertible debentures (100) (5)
Inter-corporate deposits placed (1,094) (150)
Proceeds from inter-corporate deposits 750 100
Bank deposits (placed)/matured, net (568) (60)
Sale/(purchase) of mutual funds, net 2,815 (2,640)
Loan given to Company's franchisees and vendors (34) (97)
Proceeds from loan given to Company's franchisees and vendors 34 94
Lease payments received from sub-lease (excluding interest received) 21 19
Dividend received from subsidiary 24 24
Interest received 52 60
Net cash from/(used in) investing activities B 1,564 (2,744)
Proceeds/(repayment) from borrowings, net 225 (626)
Dividends paid (including dividend distribution tax as applicable) (355) (355)
Payment of lease liabilities (excluding interest paid) (143) (98)
Finance costs paid (195) (181)
Net cash used in financing activities C (468) (1,260)
Net cash (used)/generated during the year (A+B+C) (30) 97
Cash and cash equivalents (opening balance) (refer note 11.3) 147 50
Add/(Less): Unrealised exchange (gain)/loss 0 0
Cash and cash equivalents (closing balance) (refer note 11.3) 117 147
Current borrowings
Opening balance - 626
Proceeds/(Repayment) from borrowings, net 225 (626)
Closing balance 225 -
Reconciliation of Lease liability
Payments made during the year (143) (98)
Non-cash changes 213 111

Ratio Analysis of Titan Company Limited by Vedant Rahatekar

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lOMoARcPSD|19846024

Ratio Analysis of titan company limited by Vedant Rahatekar

BBA (Savitribai Phule Pune University)

Studocu is not sponsored or endorsed by any college or university

VEDANT SANTOSH RAHATEKAR

- UNDER THE GUIDENCE OF –

Prof. PALLAVI YEOLEKAR

KTHM COLLEGE, NASHIK-422004

Mrs. Ashwini Kohok Dr. V.B. Gaikwad

Prof. Pallavi Yeolekar

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Lastly, I am grateful to my parents who have been my mentor and motivators. I

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Date- VEDANT S. RAHATEKAR

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CHAPTER CONTENTS PAGE NO.

3. OBJECTIVES OF THE STUDY 4

4. COMPANY PROFILE 5-6

5. RESEARCH METHODOLOGY 7-1

6. DATA ANALYSIS & INTERPRETATIONS 15-22

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Profit and Loss Statement

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Cash Flow Statement

2. Investments (changes in assets & liabilities)

3. Financing (debt, equity & loans)

It is therefore a bit of a mix between a P&L statement and a Balance Sheet, in

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OBJECTIVES OF THE STUDY

 To Evaluate Company’s performance relating to Financial Statement

 To find out the profitability position based on fundamental analysis.

 To find out the liquidity position of TITAN COMPANY LIMITE.

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TITAN COMPANY LIMITED is an Indian company that mainly manufactures

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 Revenue – ₹29,033 crores (2022)

 Operating income – ₹2,169 (2022)

 Net income – ₹2,169 crores (2022)

 Total assets – ₹13,549 crores (2020)

Total equity – ₹6,579 crores (2020)

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Research methodology is a way to systematically solve the research problem. It

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It Includes following Steps

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Ratios can be classified as follows:

3. Profitability Ratio: - Measure management's success, in generating returns

for those who provide capital to the enterprise.

4. Leverage Ratio: - This is calculated to judge the long-term financial position

Two most important ratios may be calculated under this group.

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Advances) Current Liabilities= (Cash Credit + Creditors +Outstanding

Expenses +Bills Payable) Calculation of Ratio

Current Ratio= Current Asset/ Current Liabilities

2) Liquid Ratio or Acid Test Ratio: -

Liquid Ratio= Current Asset-Inventory/Current Liabilities

A Quick ration is a more penetrating test of liquidity. It is a refined measure of

Under this group the following classification of ratios are made

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1. Working Capital Turnover Ratio: -