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Titan Report Analysis FCA
Titan Report Analysis FCA
Pratiksha Wagh PA 89
2. Ashwin Firke PA 94
Introduction
Titan Company Limited is an Indian multinational corporation operating under the Tata
Group, one of India's largest and most respected conglomerates. Titan was founded in 1984
and has established a leading position in the consumer goods industry, particularly in the
areas of watches, jewelry and eyewear. The company consistently delivers high quality
products and has earned a reputation for innovation, design and craftsmanship.
Titan was established as a joint venture between the Tata Group and the Tamil Nadu
Industrial Development Corporation (TIDCO). It started as a watch manufacturer and quickly
gained a foothold in the Indian market.
Diverse portfolio:
Watches: Titan is his fifth largest integrated watch manufacturer in the world and is known
for its wide range of watch brands that cater to different consumer tastes, including Titan,
Fastrack, and Sonata. Jewelery: Titan has emerged as a leading jewelery store in India
offering a wide range of gold, diamond and platinum jewellery, under the brand name
Tanishq. Glasses: Titan's eyewear division, Titan Eyeplus, offers a variety of glasses and
sunglasses with a focus on quality and style. Innovation and Design: Titan is at the forefront
of industry innovation. The company is known for introducing advanced features into its
watches, such as touchscreen technology and smartwatches. In the jewelery field, Tanishq is
known for its exquisite and contemporary designs.
Retail Presence: Titan has an extensive retail network and presence in many cities and
towns across India. Our flagship and retail stores offer customers a luxurious and
personalized shopping experience.
Sustainability: Titan Company is committed to sustainability and responsible business
practices. The company takes steps to minimize its environmental impact and promote
ethical sourcing of materials, particularly in its jewelery sector. Awards and Recognition:
Titan has received numerous awards and accolades over the years for excellence in design,
business practices and corporate social responsibility.
Global reach: Although Titan primarily operates in India, it has expanded its international
presence in some markets, demonstrating the company's global ambitions.
Titan Company has built a strong brand identity over the years and has become synonymous
with quality and trust in the Indian consumer goods market. The company's commitment to
innovation and customer satisfaction has enabled it to maintain a leading position in the
industry, making it a key player in the Tata Group's diverse business portfolio.
Financial Analysis
Balance Sheet
1. Non-Current Assets:
Inventory means finished products .It can be seen that the production
volume is increasing.
Cash and cash equivalents have increased significantly, providing
access to readily available cash.
3. Equity and liabilities
Liabilities:
Profit before tax saw slightly growth, going from INR 2932 cr
in 2022 to INR 4465 cr in 2023.
Tax expenses increased from INR 752 cr in 2022 to INR 1132
cr in 2023.
Cash Flow
Positive
Profit Before Tax for the Year: The company reported a
significant increase in profit before tax, rising from ₹2932
cr in 2022 to ₹4465 cr in 2023.
Cash Generated from Operations: Despite the changes in
working capital, the cash generated from operations
turned positive, increasing from ₹330 cr in 2022 to ₹2952
cr in 2023. This indicates that the company generated cash
from its core operations.
Net Cash Flows (Used In/From Operating Activities): The
net cash flow from operating activities improved, with a
smaller decrease of ₹1810 cr in 2023 compared to a
decrease of ₹1126 cr in 2022.
Auditor’s Report Analysis
The audit report of Titan Company Limited for the year
ended March 31, 2023 issued by M/s BSR & Co. LLP,
Chartered Accountants, is satisfactory and the financial
statements do not contain material misstatement. The
auditor has issued an unqualified opinion on the financial
statements, which means that the auditor is satisfied with
the company's financial reporting and internal controls.
The auditors also highlighted the following key points in
their report:
The company has maintained appropriate accounting
books and other records in accordance with applicable
laws and regulations.
The company has complied with applicable accounting
standards and employ appropriate accounting policies.
The company has a robust internal control system that
effectively prevents and detects fraud and errors.
The company has disclosed all material information in our
financial statements in accordance with applicable
accounting standards and regulations.
Additionally, the auditors made a number of other
comments and comments in their report designed to help
improve the Company's financial reporting and internal
controls. For example, auditors have suggested that the
disclosure of certain information in the financial
statements, such as the impact of pending litigation on
financial condition, could be improved.
Overall, his audit report of Titan Company Limited for the
year ended March 31, 2023 is positive and provides our
shareholders and other stakeholders with confidence that
our financial reports are reliable and accurate. I
Additional findings based on the auditor's report include:
The company's operating revenue increased by 28% in
FY2023 compared to FY2022. The company's net profit
increased by 26% in FY23 compared to FY22. The
company's debt-to-equity ratio remained at 0.0 in FY2013,
indicating a strong financial position. The Company has
generally acted appropriately in paying its undisputed
statutory dues to the relevant authorities. We have a
robust internal control system that effectively prevents and
detects fraud and errors. Overall, the audit report of Titan
Company Limited for the year ended March 31, 2023 is
positive and provides confidence to the company's
shareholders and other stakeholders that the company's
financial reports are reliable and accurate and that the
company ensures that the company has solid financial
reporting. Financial status.
a) Standalone :
During the year under review, the Companys total revenue grew by 41% to Rs
38,270 crore compared to Rs 27,210 crore in the previous year.
Profit before tax and exceptional items grew by 50% to Rs 4,465 crore and the
net profit grew by 53% to Rs 3,333 crore.
The Watches & Wearables Division of the Company recorded a revenue of Rs
3,296 crore, a growth of 43%. The revenue from Jewellery Division grew by
37% touching Rs 31,897 crore (excluding sale of bullion of Rs 2,208 crore). The
revenue from EyeCare Division grew by 33% to Rs 689 crore.
New Businesses, viz., Indian Dress Wear Division and Fragrances & Fashion
Accessories Division recorded a consolidated revenue of Rs 295 crore, a growth
of 92% over the previous year. While the Indian Dress Wear Division grew by
168%, the Fragrances & Fashion Accessories Division also recorded a growth of
56%.
The Management Discussion and Analysis report, which is attached, dwells into
the performance of each of the business divisions and the outlook for the
current year.
b) Consolidated Numbers
2. DIVIDEND
3. Profits:
Profit before tax and exceptional items grew by 50% to Rs 4,465 crore and the
net profit grew by 53% to Rs 3,333 crore.
4. Transfer to Reserves
As permitted under the provisions of the Companies Act, 2013 (the Act), the
Board does not propose to transfer any amount to general reserve and has
decided to retain the entire amount of profit for the financial year 2022-23 in
the profit and loss account.
5. Share Capital
The Paid-up Equity Share Capital of the Company as on
March 31, 2023 was ₹18.67 crore comprising of 18,67,70,370
equity shares of ₹1 each. Share capital is the total amount
of money that a company has raised from the sale
of its shares. It is a permanent source of capital for
the company, and it cannot be withdrawn by the
shareholders unless the company is wound up.