1.

Pratiksha Wagh PA 89
2. Ashwin Firke PA 94

Annual Report Analysis for Titan

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:

Titan company investment in non-current assets has increased around 0.6cr

 Investment will increase as fixed assets and equipment are considered basic
materials.
 A zero value for investment property indicates that the tenant has purchased
all the property that was rented.
2. 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:

 Non-current liabilities - we increase our liabilities from 1205 to 1573.

 Current liabilities –  Current liabilities have decreased slightly as one
of the creditor claims is outstanding.

 Capital is the amount of money invested or owned by the owners of a

business. On a company's balance sheet, the difference between liabilities
and assets shows how much capital the company has.

Profit and Loss Statement

1 Revenue and Income:

 Total revenue increased significantly from Rs 27,210 crore in 2022 to Rs

38,270 crore in 2023. This indicates an improvement in overall financial
performance.
2 Expenses:

 Cost of materials consumed increased from INR 20949 cr in 2022 to INR

25085 cr in 2023, which could be due to higher material costs or increased
production.
 Purchases of Stock-in-trade also increased from INR 4187cr in 2022 to INR
5438cr in 2023, which suggests an increase in inventory.
 Changes in inventories improved draftly, from INR 4468 cr in 2022 to INR
1477 in 2023, indicating better inventory management.
 Employee benefits expense increased from INR 1143 cr in 2022 to INR 1362
cr in 2023, possibly due to increased salaries, benefits, or a larger workforce.
  Finance costs also increased from INR 195 cr in 2022 to INR 240 cr million in
2023, possibly indicating higher borrowing or interest rates.
 Depreciation and amortization expense increased slightly from INR 347 cr in
2022 to INR 364 million in 2023.
 Other expenses increased from INR 2130 cr in 2022 to INR 3092 cr in 2023.
 Total expenses grew from INR 24473 cr in 2022 to INR 34104 cr in 2023.
 Exceptional items in 2023 were INR (- ), whereas in 2022, there was INR 51
cr.
3. Profit and Taxation:

 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.

4. Earnings per Equity Share:

 Earnings per equity share (basic and diluted) increased

from 24.56 in 2022 to 37.54 in 2023, indicating improved
earnings per share for the shareholders.
The company's financial performance improved significantly in 2023 compared to 2022. The
company reported significant sales growth, increased profits, and improved overall
performance. However, expenses also increased, particularly in areas such as material costs,
employee benefits, and financing costs. Special effects in 2023 had a significant impact on
profit numbers.

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.

 The Report on Other Legal and Regulatory Requirements:

 1. As required by the Companies (Auditor's Report) Order,

2020 (the Order) issued by the Central Government of
India in terms of Section 143 (11) of the Act, we give in the
Annexure A a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
 2. (A) As required by Section 143(3) of the Act,
 we report that:
 a) We have sought and obtained all the information and
explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
 b) In our opinion, proper books of account as required by
law have been kept by the Company so far as it appears
from our examination of those books.
 c) The standalone balance sheet, the standalone statement
of profit and loss (including other comprehensive income),
the standalone statement of changes in equity and the
standalone statement of cash flows dealt with by this
Report are in agreement with the books of account.
 d) In our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified under Section
133 of the Act.
 e) On the basis of the written representations received
from the directors as on 31 March 2022 taken on record by
the Board of Directors, none of the directors is disqualified
as on 31 March 2022 from being appointed as a director i n
terms of Section 164(2) of the Act.
 f) With respect to the adequacy of the internal financial
controls with reference to financial statements of the
Company and the operating effectiveness of such controls,
refer to our separate Report in Annexure B.
 (B) With respect to the other matters to be included in the
Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditor's) Rules, 2014, in our
 opinion and to the best of our information and according
to the explanations given to us:
 a) The Company has disclosed the impact of pending
litigations as at 31 March 2022 on its financial position in
its standalone financial
 statements - Refer note 30 to the standalone financial
statements.
 b) The Company did not have any long-term contracts
including derivative contracts for which there were any
material foreseeable losses.
 c) There has been no delay in transferring amounts,
required to be transferred, to the Investor Education and
Protection Fund by the Company.
 d) (i) The management has represented
 that, to the best of its knowledge and belief, as disclosed in
note 40 to the standalone financial statements, no funds
have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other persons
or entities, including foreign entities (Intermediaries), with
the understanding, whether recorded in writing or
otherwise, that the Intermediary shall:
 directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever (Ultimate
Beneficiaries) by or on behalf of the Company or
 provide any guarantee, security or the like to or on behalf
of the Ultimate Beneficiaries.
 (ii) The management has represented, that, to the best of
its knowledge and belief, as disclosed in note 40 to the
standalone financial statements, no funds have been
received by the Company from any persons or entities,
including foreign entities (Funding Parties), with the
understanding, whether recorded in writing or otherwise,
that the Company shall:
 directly or indirectly, lend or invest in other persons or
entities identified
 in any manner whatsoever (Ultimate Beneficiaries) by or on
behalf of the Funding Party or
 provide any guarantee, security or the like from or on
behalf of the Ultimate Beneficiaries.
 (iii) Based on such audit procedures as considered
reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that
 the representations under sub-clause (d) (i) and (d) (ii)
contain any material misstatement.
 e) The dividend declared or paid during the year by the
Company is in compliance with Section 123 of the Act.
 (C) With respect to the matter to be included in the
Auditor's Report under Section 197(16) of the Act:
 I n our opinion and according to the information and
explanations given to us, the remuneration paid by the
Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act.
The remuneration paid to any director is not in excess of
the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other
details under Section 197(16) of the Act which are required
to be commented upon by us.

Board’s Report Analysis

1. Total Income

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

At the consolidated level, the revenue stood at Rs 40,575 crore as against Rs

28,799 crore in the previous year. The details of the performance of the
Companys subsidiaries are covered below in point 15 of this Report.

2. DIVIDEND

Considering the excellent performance of the Company during the last

financial year, the Board of Directors are pleased to recommend a dividend on
equity shares at the rate of 1000% (i.e., Rs 10 per equity share of Rs 1 each),
for the financial year ended 31st March 2023 subject to approval by the
Shareholders, at the ensuing Annual General Meeting (AGM) and payment is
subject to deduction of tax at source as may be applicable. This payment
represents a dividend payout ratio of 26.6%. The total dividend on equity
shares for the financial year 2022-23, if approved by the Shareholders would
aggregate to approximately Rs 888 crore. The dividend, subject to the approval
of Shareholders at the ensuing AGM would be paid to the Members whose
names appear in the Register of Members as on the Book Closure date. The
Dividend

Your Company’s Total Income during the year under review

was ₹38569 crore as compared to ₹27456 crore in the Previous
Year.

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.