ACCOUNTANCY

PROJECT
INTRODUCTION

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⊚Titan Company Limited is a joint venture between the Tata Group
and the Tamil Nadu Industrial Development Corporation (TIDCO)
under the name Titan Watches Limited.

⊚Titan Industries Ltd was incorporated in the year 1984 and

commenced their business in the year 1986.

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⊚Titan is the 5th largest integrated own brand watch
manufacturer in the world. They export watches to about 32
countries around the world.

⊚Titan is widely known for transforming the watch &

jewellery industry in India and for shaping India's retail
market by pioneering experiential retail.

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BRANDS OF
TITAN COMPANY LTD

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1)WATCHES AND ACCESSORIES
DIVISION

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2)JEWELLERY DIVISION

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3)EYEWARE & PERFUME DIVISION

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ACCOUNTING
PRINCIPLES

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What Are Accounting Principles?
Accounting Principles are rules of action which have to be
followed by the accountant while recording the accounting
transactions.

These Principles Are Classified Into 2 Categories:-

 1)Accounting Concepts
2)Accounting Conventions

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1)ACCOUNTING CONCEPTS
1.Separate Entity Concept-It states that Business and its owner are different
entity during the accounting.

2.Going concern concept-This concept states that the business will run
forever and the business will not stop due to any factors other than any
legal laws has been violated.
 
3.Money Measurement concept-It states that every business transactions
will be measured in terms of money.
 
4.Cost Concept-Recording the value of Assets of the business at the cost of
its purchase price.

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5.Dual Aspect concept-In simple words its double entry book keeping ,it
states that each and every transaction Has its dual effect that is Dr. And Cr.
 
6.Accounting period concept-This is a specific time period in a fiscal year in
which all the financial statements have to be reported.
 
 7.Matching Concept- It is the accounting principle that requires that the
expenses incurred during a period should be recorded in the same
period in which the related revenues are earned.
 
8.Realization concept-It states that revenue will be recorded in the
books of accounts only when the money will enter into the business.

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2)ACCOUNTING CONVENTIONS
1.Convention of conservatism
It is a policy in which future probably losses are to be disclosed rather than
future probably profits of business.
 
2.Convention of full disclosure
It states that each an every information of the business should be disclosed
which is necessary in the financial statements of business.
 
3.Convention of Consistency
It is a policy in which accountant have to follow the same accounting methods
throughout the every accounting periods.
 
4.Convention of Materiality
It states that each an every material information which the investors or public
needs to know should be disclosed.

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ACCOUNTING
STANDARDS

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What Is Accounting Standards?
It states that how transaction & events are to be recognised,
measured, presented & disclosed in the financial statements.

List Of Accounting Standards Followed By

Titan Company Ltd?
AS 1 : Disclosure of Accounting Policies
AS 2 : Valuation of Inventory
 AS 3 : Cash Flow Statement
AS 4 : Contingencies and Events occurring after Balance Sheet
Date
AS 5 : Net Profit or Loss for the period, prior period and changes in
accounting estimates
AS 7 : Accounting for Construction Contracts
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AS 9 : Revenue Recognition
AS10: Property, Plant and Equipment
AS 11: Accounting for Effect of Changes in Foreign Exchange
Rates
AS 12: Accounting for Government Grants
AS 13: Accounting for Investments
AS 14: Accounting for Amalgamations
AS 15: Employee Benefits
AS 16: Accounting for Borrowing Costs
AS 17: Segmental Reporting
AS 18: Related Party Disclosures
AS 19: Leases
AS 20: Earnings Per Share
AS 21: Consolidated Financial Statements

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AS 22: Accounting for Taxes on Income
AS 23: Accounting for Investment in Associates in Consolidated
Financial Statements
AS 24: Discontinuing Operations
AS 25: Interim Financial Statements
AS 26: Intangible Assets
AS 27: Financial Reporting of Joint Ventures
AS 28: Impairment of Assets
AS 29: Provisions, Contingent Liabilities and Contingent Assets

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ACCOUNTING
SOFTWARE

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What Is Accounting Software?
Accounting software completes the tasks of the
book keeping and accounting and it also stores
financial data of the business.

Accounting Software used by Titan

Company Ltd?

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Advantages Of Softwares?

1)Customized solutions. 1)Ease of Backup.

2)Increased Productivity and Efficiency. 2)Updates.
3)Cost Efficient Use. 3)Handles More Transactions
4)Data Analysis and Reporting.
5)Maintain consistent operations.

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CAPITAL
STRUCTURE

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What Is Capital Structure?
The capital structure is the particular
combination of debt and equity used by a
company to finance its overall operations
and growth.

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CAPITAL STRUCTURE OF TITAN COMPANY LTD(In Cr.)

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BAR GRAPH OF TITAN COMPANY LTD(IN CR)
14000
12000
10000
8000
DEBT
6000 EQUITY
4000
2000
0
2015 2016 2017 2018 2019
As we can see from the bar graph that Debt and Equity both are inclining from
The year 2015 to the year 2019 but Debt at a lower rate in comparison of Equity.
Also, company’s borrowed funds and Reserves are increasing each an every
year.
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RATIOS

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To examines a company's ability to meet its long
term obligations certain ratios have been done which are as
follows:-

1)Debt-Equity Ratio
 
2)Interest Coverage Ratio
 
3)Debt To Total Fund

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1)Debt-Equity Ratio
• It is a financial ratio indicating the
relative proportion of shareholders‘
equity and debt used to finance a
company's assets.

• The generally accepted standard norm of debt-equity ratio is 2:1.

• This ratio measures how much debt your business is carrying as

compared to the amount invested by its owners. It indicates the
amount of liabilities the business has for every dollar of
shareholders' equity.
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Debt-Equity Ratio Table Of Titan Company Ltd

• The debt-equity ratio is calculated by dividing the long term debt with net worth. It is
evident that long term debt of the company had increased remarkably from Rs. 99.79
crores in 2015 to Rs. 2,287.63 crores in 2019. Net worth had gradually moved from Rs.
3092.01crores to Rs. 6181.72 crores over the study period. Debt equity ratio had varied
from the lowest of 0.03 times in 2015 to the highest of 0.37times in 2019.
 
• The ratio is well below than the standard ratio of 2:1.
 
• It means that the debt employed by the company was low from the point of view as the
standard ratio. However, the interest of the debt holders of the company was well
protected.
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2)Interest Coverage Ratio
• It is used to determine how easily a
company can pay interest on its
outstanding debt or in simple words
how many times does the company
can pay its interest.

• The lender will be interested in finding out whether the business would earn
sufficient profits to pay the interest charges and interest being paid
periodically.

• Higher the ratio higher the benefit of the company

 
• Interest coverage ratio is calculated by using the following formula: Interest
Coverage Ratio = EBIT / Interest. 30
Interest Coverage Ratio Table Of Titan company ltd

• The highest interest coverage ratio was recorded at 44.36 times in

2019 and the lowest being 14.09times in 2015.
 
• It shows that the company can pay its interest 44 times in the current
fiscal year.

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 3)DEBT TO TOTAL FUND RATIO

• The debt-to-capital ratio is calculated

by taking the company's interest-
bearing debt, both short- and long-
term liabilities and dividing it by the
total capital

• The higher the debt-to-capital ratio, the riskier the company. This is
because a higher ratio, the more the company is funded by debt
than equity, which means a higher liability to repay the debt and a
greater risk of forfeiture on the loan if the debt cannot be paid timely.

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Debt To Total Fund Ratio Table Of Titan Company Ltd
 

• Total fund had jumped from Rs. 5440.02 crores in 2015 to Rs.
11292.63 crores in 2019. The total fund had exceeded over the total
debt during the entire period of the study.
 
• It may be concluded that the financial risk of the company is low.

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COMPANY’S
CREDIBILITY

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What is company’s Credibility?
It means how others look at you as
a reliable resource and decision
maker. It allows those who rely on
you to know they can count on you,
trust you, do business with you, and
align with you.

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Titan Company Ltd ‘s Credit Rating

• Titan Company ltd has been rated by the top credit ratings agency of India.
 
• AAA Instruments with this rating are considered to have the highest
degree of safety regarding timely servicing of financial obligations. 

• As, we can see from the table that titan company ltd is having an excellent credit
score which suggest that its among the most reliable company in terms of financial
stability in India. 36
MARKET
POSITION

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What Is Market Position?
It refers to position of the company in
the market in comparison to the same
market competitors.

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Market Position of Titan Company Ltd(In Rs Cr):-

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 120000

100000

80000

60000 Market Capital

Sales Turnover
Net Profit
40000

20000

0
Titan Rajesh Vaibhav PC Jeweller
Exports Global

• After analyzing the bar graph ,we can say that the Titan Company Ltd is the
market leader of the market.

• Though Rajesh Exports have a higher sales turnover in the market but still
Titan Company Ltd is Having the Highest Net Profit in the market.
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THANK
YOU

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