Business
information report
1. Summary Information
|
|
|
Country |
|
|
Company Name |
TITAN INDUSTRIES LIMITED |
Principal Name 1 |
Mr. Rajeev Ranjan |
|
Status |
Very Good |
Principal Name 2 |
Mr. Susan Mathew |
|
|
|
Registration # |
18-001456 |
|
Street Address |
3, SIPCOT Industrial Complex, Hosur – 635 126, Tamilnadu |
||
|
Established Date |
26.07.1984 |
SIC Code |
-- |
|
Telephone# |
91-4344-664199 |
Business Style 1 |
Manufacturers |
|
Fax # |
91-4344-276037 |
Business Style 2 |
Sellers |
|
Homepage |
Product Name 1 |
Watches |
|
|
# of employees |
4353
(Approximately) |
Product Name 2 |
Jewellery Pieces |
|
Paid up capital |
Rs. 443,893,000/- |
Product Name 3 |
Table Clocks |
|
Shareholders |
Promoters Holding
(53.05%) Public shareholding
(49.95%) |
Banking |
Canara Bank |
|
Public Limited Corp. |
Yes |
Business Period |
28 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A (69) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
|
Titan Time Products Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
14,285,690,000 |
Current Liabilities |
24,192,732,000 |
|
Inventories |
19,938,287,000
|
Long-term Liabilities |
676,993,000 |
|
Fixed Assets |
2,830,685,000 |
Other Liabilities |
2,215,980,000 |
|
Deferred Assets |
000 |
Total Liabilities |
27,085,705,000 |
|
Invest& other Assets |
284,839,000 |
Retained Earnings |
9,809,903,000 |
|
|
|
Net Worth |
10,253,796,000 |
|
Total Assets |
37,339,501,000 |
Total Liab. & Equity |
37,339,501,000 |
|
Total Assets (Previous Year) |
20,862,593,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
65,208,951,000 |
Net Profit |
4,336,376,000 |
|
Sales(Previous yr) |
46,744,217,000 |
Net Profit(Prev.yr) |
2,532,401,000 |
MIRA
INFORM REPORT
|
Report Date : |
29.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
TITAN INDUSTRIES LIMITED |
|
|
|
|
Registered Office : |
3, SIPCOT Industrial Complex, Hosur – 635126, Tamil Nadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
26.07.1984 |
|
|
|
|
Com. Reg. No.: |
18-001456 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 443.893
millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L74999TZ1984PLC001456 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHET08980G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACT5131A |
|
|
|
|
Legal Form : |
Public Limited Liability Company Company’s Shares Are Listed On The
Stock Exchange |
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|
|
|
Line of Business : |
Manufacturers and Sellers of Watches, Jewellery Pieces,
Table Clocks, etc. |
|
|
|
|
No. of Employees
: |
4353 (out of
which 2630 were in the factories, 800 in retail, about 578 in sales and
marketing while the rest 345 were in support functions.) (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 41000000 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a well established and reputed company having fine track. Financial
position of the company appears to be good. Fundamentals are strong and
healthy. Payments are reported to be regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
3, SIPCOT Industrial Complex, Hosur – 635 126, |
|
Tel. No.: |
91-4344-664199 |
|
Fax No.: |
91-4344-276037 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Golden Enclave, Tower A, |
|
Tel. No.: |
91-80-66609000/ 66609027 |
|
Fax No.: |
91-80-25269923/ 25263001 |
|
E-Mail : |
|
|
|
|
|
Watch Plant 1 : |
Plot Nos.3, 4 and 5, SIPCOT Industrial Complex, Hosur – 635 126, |
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|
|
|
Watch Plant 2 : |
Mohabewala Industrial Area, Dehradun - 248002, (i) Unit 1 - Khasra No. 148D, 173B, 176A and 176B (ii) Unit 2 - Khasra No. 148B, 149B |
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Watch Plant 3 : |
Plot No.59, EPIP, Jharmajary Phase I, Solen District, Baddi-173205 |
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|
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Watch Plant 4 : |
Plot No. C1, C2, C3, Khasra No. 37, Village Bantakheri, Tehsil - Roorkee,
District - Haridwar, Uttaranchal, India
|
|
|
|
|
Watch Plant 5 : |
Plot No. 10B,
Khasra Nos. 150, 151, 152, 153 Sector 2, Integrated Industrial Estate,
SIDCUL, Pant Nagar 263 153, Udham Singh Nagar District, Uttarkhand, India |
|
|
|
|
Precision Engineering Plants 1 : |
No.15 B, Bommasandra Industrial Area, Hosur Road, Anekal Taluk,
Bangalore - 562158, Karnataka, India |
|
|
|
|
Precision Engineering Plants 2 : |
Plot Nos. 27 and 28, SIPCOT Industrial Area, Hosur - 635 126, |
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|
|
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Jewellery and Clock Plants 1 : |
29, SIPCOT Industrial Complex, Hosur - 635126, |
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|
|
|
Jewellery and Clock Plants 2 : |
Khasra No. 238, Kuanwala Dehradun - 248 001, |
|
|
|
|
Prescription Eyewear
Lens Laboratory : |
Plot No. 27, Survey No.125, KIADB Industrial Area, Chikaballapur - 562
101 Karnataka, |
|
|
|
|
Overseas Branch Office : |
Unit No. 11 and 12, 20/F, Metro Loft No. 38, Kwai Hei Street, Kwai
Chung N T, Hong Kong |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Rajeev Ranjan |
|
Designation : |
Director (up to 14.06.2011) |
|
|
|
|
Name : |
Mr. Susan Mathew |
|
Designation : |
Chairperson (up to 14.06.2011) |
|
|
|
|
Name : |
Mr. Bhaskar Bhat |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Sunil Paliwal |
|
Designation : |
Director (up to 06.12.2010) |
|
|
|
|
Name : |
Mr. Debendranath Sarangi |
|
Designation : |
Director (up to 14.06.2011) |
|
|
|
|
Name : |
Mr. V. Parthasarathy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ishaat Hussain |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. N.N. Tata |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. T.K. Balaji |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. C.G. Krishnadas Nair |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nihal Kaviratne, CBE |
|
Designation : |
Director |
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|
|
|
Name : |
Ms. Vinita Bali |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Hema Ravichandar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. R. Poornalingam |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. sundaradevan |
|
Designation : |
Director (from 14.06.2011) |
|
|
|
|
Name : |
Mr. Das Narayandas |
|
Designation : |
Director (from 29.04.2011) |
KEY EXECUTIVES
|
Name : |
A.R. Rajaram |
|
Designation : |
Head - Legal and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
247476720 |
27.88 |
|
|
223531200 |
25.18 |
|
|
471007920 |
53.05 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
471007920 |
53.05 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
29129835 |
3.28 |
|
|
72911 |
0.01 |
|
|
13953605 |
1.57 |
|
|
132831113 |
14.96 |
|
|
175987464 |
19.82 |
|
|
|
|
|
|
21658146 |
2.44 |
|
|
|
|
|
|
112263664 |
12.65 |
|
|
106648017 |
12.01 |
|
|
220949 |
0.02 |
|
|
211949 |
0.02 |
|
|
9000 |
-- |
|
|
240790776 |
27.12 |
|
Total Public shareholding (B) |
416778240 |
46.95 |
|
Total (A)+(B) |
887,786,160 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have
been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
887,786,160 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Sellers of Watches, Jewellery Pieces,
Table Clocks, etc. |
||||||||
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|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
4353 (out of
which 2630 were in the factories, 800 in retail, about 578 in sales and
marketing while the rest 345 were in support functions.) (Approximately) |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
·
Canara Bank ·
Bank of ·
The Hongkong and Shanghai Banking Corporation
Limited ·
Standard Chartered Bank ·
Oriental Bank of Commerce ·
Union Bank of ·
Indian Bank |
||||||||||||||||||
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|
||||||||||||||||||
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Facilities : |
|
|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
|
|
|
|
Promoters : |
·
Tamil Nadu Industrial Development Corporation
Limited ·
Tata Sons Limited |
|
|
|
|
Subsidiaries : |
·
Titan Time Products Limited ·
Tanishq ( ·
Titan Properties Limited ·
Titan Mechatronics Limited (up to 30 March 2010) |
|
|
|
|
Associates : |
·
TVS Wind Power Limited (from 22 March 2011) |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80000000 |
Equity Shares |
Rs. 10/- each |
Rs. 800.000 Millions |
|
4000000 |
Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 400.000 Millions |
|
|
Total |
|
Rs. 1200.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
44389308 |
Equity Shares |
Rs. 10/-
each |
Rs. 443.893
Millions |
|
|
|
|
|
AS ON 28.07.2011
Authorised Capital : Rs. 1600.000
Millions
Issued,
Subscribed & Paid-up Capital : Rs. 443.893 Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
443.893 |
443.893 |
443.893 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9809.903 |
6799.940 |
5068.542 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10253.796 |
7243.833 |
5512.435 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
676.993 |
727.904 |
1167.551 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
586.500 |
|
|
TOTAL BORROWING |
676.993 |
727.904 |
1754.051 |
|
|
DEFERRED TAX LIABILITIES |
15.182 |
47.549 |
181.780 |
|
|
|
|
|
|
|
|
TOTAL |
10945.971 |
8019.286 |
7448.266 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2830.685 |
2626.308 |
2744.785 |
|
|
Advances on capital account and Capital work-in-progress, at cost |
193.563 |
122.867 |
195.249 |
|
|
|
|
|
|
|
|
INVESTMENT |
91.276 |
76.289 |
76.644 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
19938.287
|
13403.315
|
12026.917
|
|
|
Sundry Debtors |
1136.789
|
936.076
|
1062.216
|
|
|
Cash & Bank Balances |
10948.878
|
1867.184
|
546.910
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
2200.023
|
1830.554
|
1141.290
|
|
Total
Current Assets |
34223.977
|
18037.129 |
14777.333 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
17461.288
|
7221.721 |
6967.065 |
|
|
Other Current Liabilities |
6731.444
|
4274.176
|
2444.233
|
|
|
Provisions |
2200.798
|
1347.410
|
934.447
|
|
Total
Current Liabilities |
26393.530
|
12843.307 |
10345.745 |
|
|
Net Current Assets |
7830.447
|
5193.822
|
4431.588
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10945.971 |
8019.286 |
7448.266 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
65208.951 |
46744.217 |
38033.757 |
|
|
|
Other Income |
560.763 |
118.585 |
52.605 |
|
|
|
TOTAL (A) |
65769.714 |
46862.802 |
38086.362 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating and Other Expenses |
59352.783 |
42794.643 |
35068.855 |
|
|
|
TOTAL (B) |
59352.783 |
42794.643 |
35068.855 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6416.931 |
4068.159 |
3017.507 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
82.097 |
254.188 |
294.339 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
6334.834 |
3813.971 |
2723.168 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
344.825 |
600.801 |
417.606 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5990.009 |
3213.170 |
2305.562 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1653.633 |
680.769 |
606.763 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4336.376 |
2532.401 |
1698.799 |
|
|
|
|
|
|
|
|
|
Less |
INCOME TAX OF
EARLIER YEARS |
32.226 |
29.165 |
109.164 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
4304.150 |
2503.236 |
1589.635 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2729.161 |
2110.253 |
2185.451 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to debenture redemption reserve |
52.800 |
52.800 |
52.800 |
|
|
|
Proposed dividend on equity shares |
1109.733 |
665.840 |
443.893 |
|
|
|
Tax on dividends |
180.026 |
110.588 |
75.440 |
|
|
|
Transfer to general reserve |
1364.600 |
1055.100 |
1092.700 |
|
|
BALANCE CARRIED
TO THE B/S |
4326.152 |
2729.161 |
2110.253 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
1268.990 |
1006.130 |
1301.121 |
|
|
|
Others |
2.504 |
9.376 |
24.490 |
|
|
TOTAL EARNINGS |
1271.494 |
1015.506 |
1325.611 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
29258.844 |
19816.351 |
10881.183 |
|
|
|
Stores & Spares |
58.171 |
88.794 |
104.670 |
|
|
|
Capital Goods |
41.257 |
115.685 |
77.093 |
|
|
TOTAL IMPORTS |
29358.272 |
20020.830 |
11062.946 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
96.96 |
56.39 |
35.81 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
20206.000 |
20965.000 |
24404.000 |
22817.700 |
|
Total Expenditure |
18360.500 |
18961.100 |
22272.200 |
20743.600 |
|
PBIDT (Excl OI) |
1845.500 |
2003.900 |
2131.800 |
2074.100 |
|
Other Income |
230.200 |
199.800 |
244.400 |
251.900 |
|
Operating Profit |
2075.700 |
2203.700 |
2376.200 |
2326.000 |
|
Interest |
11.000 |
2.200 |
9.600 |
131.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
2064.700 |
2201.500 |
2366.600 |
2194.800 |
|
Depreciation |
99.200 |
105.700 |
119.200 |
124.900 |
|
Profit Before Tax |
1965.500 |
2095.800 |
2247.400 |
2069.900 |
|
Tax |
531.900 |
613.800 |
608.300 |
627.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1433.600 |
1482.000 |
1639.100 |
1442.800 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1433.600 |
1482.000 |
1639.100 |
1442.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.59
|
5.40
|
4.46
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.19
|
6.87
|
6.06
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.17
|
15.55
|
13.16
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.58
|
0.44
|
0.42
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.64
|
1.87
|
2.20
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.30
|
1.40
|
1.43
|
LOCAL AGENCY FURTHER INFORMATION
|
Check list by info
Agents |
Available in Report (Yes/ No) |
|
Year of Establishment |
Yes |
|
Locality of the Firm |
Yes |
|
Constitution of the Firm |
Yes |
|
Premises details |
No |
|
Type of Business |
Yes |
|
Line of Business |
Yes |
|
Promoter’s Background |
Yes |
|
No. of Employees |
No |
|
Name of Person Contacted |
No |
|
Designation of Contact person |
No |
|
Turnover of Firm for last three years |
Yes |
|
Profitability for last three years |
Yes |
|
Reasons for variation <> 20% |
------------- |
|
Estimation for coming financial year |
No |
|
Capital in the business |
Yes |
|
Details of sister concerns |
Yes |
|
Major Suppliers |
No |
|
Major Customers |
No |
|
Payments Terms |
No |
|
Export/ Imports Details (If applicable) |
No |
|
Market Information |
------------ |
|
Litigations that the firm/ Promoters Involved in |
------------- |
|
Banking details |
Yes |
|
Banking Facility Details |
Yes |
|
Conduct of the Banking Account |
------------- |
|
Buyer visit details |
------------- |
|
Financials, if provided |
Yes |
|
Incorporation details is applicable |
Yes |
|
Last Accounts filed at ROC |
Yes |
|
Major Shareholders, if available |
No |
LITIGATION DETAILS:
CASE STATUS INFORMATION
SYSTEM
Case Status: Pending
Status Of: Company Petition
Case No.: 5
Year: 2012
Petitioner: Titan Properties Limited
Respondent: Titan Industries Limited
Pet’s
Advocate: M/S. Udayashankar
Res’s
Advocate: The Registrar of Companie
Category: No Category Mentioned
Last Listed on: No Date Mentioned
Case Updated
on: March 1 2012
FINANCIAL RESULTS
Titan Industries
Limited has delivered one of its best ever performances. Sales income for the
year 2010-11 was Rs. 65708.600 Millions, registering a growth of 39.7% over previous
year’s sales of Rs. 47031.200 Millions. This growth was attributable to the
continued dynamism of the Indian economy resulting in high consumer confidence,
favorable demographics of their primary market - India, the unique position
Titan and its brands occupy in the consumers’ mind space and the talent and
commitment exhibited by the Company’s employees and business associates.
Profit before tax
for the Company grew by 86.4% to Rs. 5990.000 Millions, while net profit grew
by 71.9% over previous year to Rs. 4304.200 Millions.
Both Watches and
Jewellery segments recorded excellent growth on the back of very good retail
sales. Watch Business achieved breakthrough in several new consumer segments in
the watch market – the sub Rs.500 economy segment, where Sonata Super-Fibre
recorded handsome sales and the children’s segment, with Titan Zoop. The
successful expansion of exclusive Fastrack stores net work has reinforced
Fastrack’s position as
The Jewellery
segment sales grew by 43.5% to Rs.50272.300 Millions and the Watch segment
sales grew by 23.3% to Rs.12664.600 Millions. Sales of others including
Eyewear, accessories and Precision Engineering rose by 60.7% to Rs.2438.700
Millions.
The year witnessed
expansion of the Company’s retail network with a net addition of 122 stores
(124503 sq. ft.) across Watches, Jewellery and Eyewear businesses. As on 31st
March 2011, the Company has a total of 665 stores, with over 810000 sq. ft of
retail space, delivering a retail turnover in excess of Rs.61500.000 Millions.
INTERNATIONAL OPERATIONS
The Company
achieved an export turnover of Rs.1270.000 Millions during the year. Exports
include sale of watches and precision engineered components.
The International
Business Division of Watches made a splendid foray into
FINANCE
During the year,
borrowings of Rs.54.200 Millions were repaid during the year. The Company
incurred Rs.662.400 Millions as capital expenditure in respect of refurbishment
and expansion programmes at manufacturing facilities and retail outlets and in
IT Hardware systems.
The Company’s
continued effort at conserving cash and containing capital employed has enabled
the company to
generate net cash inflow of Rs.9070.000 Millions.
During the year,
the Company’s long term debt rating was upgraded by CRISIL to AA +/Stable
(pronounced “double A plus with stable outlook) from AA/Stable, indicating high
degree of safety. ICRA has reaffirmed the long term debt rating of LAA
(pronounced as L Double A) with a positive outlook which indicates high credit
quality.
The year 2010-11
witnessed smart growth by various sectors including agriculture, industry and
service. However, high inflation has been a major concern which prompted the
Reserve Bank of
SUBSIDIARIES
As at 31st March 2011, the Company has the following subsidiaries:
1) Titan Time
Products Limited,
2) Tanishq (
3) Titan Properties Limited, Hosur
The performance highlights of these subsidiary companies for FY 2010-11
are as under:
Titan Time
Products Limited. sold 8.52 million (2009-10: 6.27 million) Electronic Circuit
Boards in 2010-11 and made a net profit of Rs.7.262 Millions (2009-10: Rs 3.443
Millions).
Tanishq (
None of these companies has declared a dividend.
The annual
accounts of the above three subsidiary Companies have been consolidated with
the Accounts of Titan
Industries Limited for the financial year 2010-11.
A Petition has
been filed pursuant to sections 391 to 394 of the Companies Act, 1956 by the
Company’s subsidiary company Tanishq (India) Limited as the Transferor Company
seeking sanction to the Scheme of Amalgamation proposed to be made between
itself and its holding company Titan Industries Ltd as the Transferee Company
effective 1st April 2010 as the Appointed Date. No shares of the Transferee
Company are to be issued pursuant to the Scheme. Based on an application made
under section 391 of the Companies Act, 1956, by the Transferor Company, the
Hon’ble High Court of Karnataka which has jurisdiction over the Transferor
Company has granted dispensation of the meetings of shareholders and creditors
of the Transferor Company.
MANAGEMENT DISCUSSION AND ANALYSIS
The Indian Economy
in the year 2010-11 emerged with remarkable speed from the effects of the
global financial
meltdown, with an
impressive 8.5% growth last year and an expectation of 9% in the coming year.
However, within this ambience of progress and optimism, there is the spectre
and challenge of containing inflation which has been vacillating from above 20%
to the below 9.5% level. In addition, structural challenges remain in the
economy, of corporate governance, ethical efficiency in the delivery of
subsidies and building up infrastructure.
In this context, it
is important to note that the economy, over the last three years, has
successfully withstood two shocks in rapid succession: a) a collapse in world
economic growth and trade caused by the financial crisis during 2007-2009 which
persisted into 2010-11; and b) experiencing a negative growth in the crucial
sector in agriculture in 2008-09, resulting in a drought in 2009-10. Cautious
optimism is reflected as a consequence of macro-economic measures aimed at
moderating inflation to forecast sustained growth ahead.
BUSINESS OVERVIEW
The recovery in
economic performance has led to a significant improvement in consumer and
business confidence. Consequently, retail sales of all their products witnessed
consistent and high growth.
The Company has
fared exceedingly well as a result of this. Income grew by 40% from
Rs.47030.000 Millions last year to Rs.65710.000 Millions this year while the
net profit increased by 72% from Rs.2503.200 Millions last year to Rs.4340.200
Millions this year.
WATCHES AND ACCESSORIES
GLOBAL TRENDS IN THE WATCHES INDUSTRY
During 2010,
global production of watches was estimated at around 1.2 billion timepieces, an
increase of more than 20% compared to the previous year. Many global markets
displayed a strong uptrend in sales volumes, after a sharp fall in demand
during recession-hit 2009. Asian countries such as
The premium and
luxury end of the global watches market saw vigorous recovery, with export
sales of the Swiss watch industry growing by 22% in 2010, compared to the
previous year.
The Swatch group,
global market leader in wrist watches, recorded gross sales of 6.44 billion
Swiss Francs during 2010, a growth of 22% over the previous year. The group
also reported record operating profits during 2010.
In the midst of
these positive developments in the watches industry, one dark cloud that has
appeared on the horizon has been the recent catastrophe that struck
THE INDIAN WATCHES MARKET
The Indian watches
market continued to display good growth during 2010, with the premium watch
market, in particular, recording a growth in excess of 25%. This is excellent
news for the future of the industry, since global
brands will continue to invest strongly in this rapidly growing market.
During 2010, the
Company increased its market share in multi-brand outlets (as measured by M/s.
Francis Kanoi
Research) by a
further 2% to 45%, in the face of competition from over 65 competitor brands.
Their share in the total market including sales at exclusive stores and
corporate clients stands at 47% by value.
The Company’s
market leadership and consistent growth was achieved through a well crafted
portfolio of sharply
defined brands,
which dominate several consumer segments in the watches market – Titan for the
mid-premium market, Raga for women, Fastrack for youth, Sonata for
value-conscious consumers, Zoop for school children, and Xylys for connoisseurs
of Swiss watches. Supplementing these brands is a wide and robust retail,
distribution and service network which extends across the country.
In a significant
development, the Company has also now entered the accessories market
(sunglasses, bags, belts, wallets, wristbands) through the Fastrack brand. This
will not only help the Company gain share in a large market but will further
enhance the appeal of the brand.
Based on these
strong foundations, the watches business of the Company achieved a record
profit before interest and taxes of Rs.1860.000 Millions and a robust ROCE of
73% during 2010/11. Titan, their flagship brand was ranked amongst the ten most
trusted brands in the country, among 16,000 brands studied by the Brand Trust
Advisory during 2010. In the same study, Fastrack was ranked the most trusted
fashion accessories brand.
JEWELLERY DIVISION
Globally, gold
continued to strengthen its role as a store of value as well as a good
financial investment.
The Jewellery
Division experienced the price of gold moving up by more than 20% during FY
2010-11 and breached the Rs.2000/gm mark for 22kt by the end of 2010-11. Record
imports happened in 2010. WGC has reported that bullion and bar sales have done
very well across the country.
Given the sentiments around most of the developed world, experts remain
bullish on gold.
Prices of rough
diamonds moved up by 20% in December 2010 and this resulted in polished diamond
prices moving up by a similar extent. By Q4, the rough prices moved up twice
again, and the prices of polished diamonds have already moved up another 70%.
Consequently, their procurement prices of polished diamonds have increased by
around 90% in April 2011, compared to December 2010. This put a tremendous
pressure both on the overall market and on the competitive position of their
brands as the difference between their prices and their competitors widen on
account of these steep increases.
They have put in
place multiple strategies to deal with this challenge: sacrificing some gross
margin to remain competitive; improving their exchange policy for increasing
their value for money and a sustained education campaign communicating the
superiority of Tanishq diamonds. The last one features Amitabh and Jaya
Bachchan in a memorable and effective advertising film.
March 2011 also
saw Excise Duty being levied on branded jewellery, this time to the extent of
1%. From what they understood from the Finance Ministry, this is applicable
only on brands like Tanishq and not on “house mark” shops, which means that any
big and reputed independent jeweller can avoid this. While Tanishq is absorbing
this impact, it puts considerable pressure on Gold Plus.
Some of the
reputed local jewellers are getting very ambitious and are showing high levels
of aggression and have opened large stores in many cities, invested
considerably in marketing and have done very well. A couple of jewellery houses
have also gone for IPOs, with a clear eye on national expansion, while they
closed the year with 120 Tanishq stores, 29 Gold Plus stores and 2 Zoya stores.
Their expansion plans for 2011-12 are quite aggressive and should deal with
this challenge adequately.
Overall, the year
has ended on an excellent note for the Division, with record performance on
EBIT margin, sales growth, studded share, Return on Capital Employed (ROCE) and
Free Cash Flow. The Division received industry recognition in marketing,
retailing and sourcing/manufacturing by winning the following awards:
·
The ET Innovative Retailer of the Year;
·
GoldPlus - 2 individual awards and Tanishq -1
individual award
·
Tanishq - Effies for the most effective Campaign of
the Year
·
GoldPlus - Many awards for its loyalty programme
Ananta
·
Zoya - the Best Store Launch of the Year Award
·
Couture Jewellery of the Year Award.
·
ISCM - CII Quality Award - the Golden Peacock
Innovation Award.
It was also a
great year for innovation in general. They took many new steps in the
innovation area as a Company. One of the major steps was the Innovation Bazaar,
which helped showcase more than 100 innovations across the Company, judged by
an external jury. The second was the Vendor Partner Product Innovation Bazaar
of the Jewellery Division, which was a new journey of strategic partnering with
the vendors on product innovation.
The DSS (Double
Studded Sales) programme of Tanishq was the highlight of the year. Under this
umbrella programme, several initiatives such as increasing inventory of high
value jewellery, improving exchange policy, conducting large exhibitions in
many cities and an improved Queen of Diamonds promotion were successfully
implemented. Two consumer activations were done for the first time in a year.
With these
initiatives, the studded category grew by 50% (the highest in recent years, and
on the largest base), which was quite exceptional. And this was achieved with
very little increase in retail area. Gold jewellery also grew handsomely by 12%
in grammage, despite the 20% price increase. The proportion of diamond studded
jewellery sales to total sales (excluding coin sales) for Tanishq now stands at
34%.
The year also saw
the launch of Taj collection and Glam Gold 2 in Tanishq; and Varnam, Pushpita,
Diamantine™,
Wedding collection and Saptara in GoldPlus.
The competitive situation and the customer sentiments that GoldPlus
faced, were rather different from that of Tanishq.
A few big
jewellers set up large format stores in some GoldPlus markets, invested
considerably in marketing and
discounts and
penetrated into the GoldPlus franchise. However, the Company’s focus on profits
through studded
sales was a major
factor of their strategy. Focus on many collections in the diamond, diamantine
and coloured stone categories gave GoldPlus substantial growth in the studded
category and delivered the profits.
In GoldPlus,
studded jewellery category grew by more than 135% during the year, even though
the grammage of
gold jewellery declined by 14%.
They also started
on their second big idea for Gold Plus (the first was the world’s largest
bangle, launched in 2009). This was the Jewellery Nano, a Tata Nano car
completely decked in jewellery, put together by technicians using various
jewellery techniques. This Nano will be launched in June 2011.
Given the huge
opportunity that the small town market offers in the gold Jewellery market,
2011-12 will see GoldPlus targeting 2 key objectives:
1.
Brand Desire
a.
Campaign on purity, price rationalization
2.
Market Leadership
a.
Big new stores, all in Andhra Pradesh, leading to
consolidation in that State
b.
Some larger current stores offering more choice to
customers.
EYEWEAR
The eyewear
industry continued to see intensive activity in 2010-11. Enhanced market activity
and greater awareness and exposure to international eyewear trends of consumers
in
Titan Industries
has now emerged as the leader in the eyewear industry both by way of network
and turnover. It has focused on aggressively expanding its retail chain,
developing superior products, perfecting store experience, increasing
profitability and building brand awareness and appeal. UCP Turnover of the
eyewear business grew 58% with same store growth being 33%.
The Company now
has over 150 exclusive eyewear stores and is present in 45 towns as on March
2011. Brand awareness has significantly improved and consumers today recognize
Titan Eye+ a preferred destination for eyewear.
The eyewear
industry still is largely unorganized with few national/regional optical
chains. Competitive activity has
increased and larger players are beginning to intensify their efforts to
grow the market.
Titan Eye+ has
taken a lead role in redefining the eyewear industry in
Titan Eye+ will
continue its thrust to expand operations and increase its retail network. It
will also continue to focus on providing high quality and superior products and
services across all its stores.
The Company sees
eyewear as a high potential business and expects it to be a significant
contributor to the bottomline in the years to come.
PRECISION ENGINEERING DIVISION
The year 2010–11
was the year of recovery for Precision Engineering Division. International
customers in aerospace and oil and gas came out of recession, cleared their
inventories and started with fresh enquiries and orders for new parts. Indian
customers particularly in the automotive sector were buoyant and this reflected
in several new orders for machine building and automation.
OUTLOOK FOR 2011-12
The Indian economy
grew by about 8.5% in the year 2010-11. Notwithstanding the high inflation and
the tightening of monitory policy by the Reserve Bank of
The Watch Business
will continue to pursue rapid and profitable growth through investment in
brands, expansion of retail net work, new and nascent consumer segments,
enhancing consumer happiness and build manufacturing and sourcing capabilities
to support the future needs of the brands. The watch business will also scale
up the ‘Helios’ retail format and consolidate the Fastrack accessories segment.
The Watch Business
will also continue to build the brand in
marketing focus to
The Jewellery
Business will continue its growth path through various initiatives, including
launching of new and innovative collections, expansion of retail net work
especially with large format stores, increasing share of studded
jewellery by
investing in marketing campaigns for diamonds. Initiatives have also been planned
in the area of integrated supply chain and bullion management.
After navigating
through a difficult period, the Precision Engineering Division of the Company
will seek to enhance
its revenue in
both their verticals –
The Company’s
Eyewear Business will continue to accelerate the pace of its retail network
expansion. A host of new collections targeting different emerging and large
segments of the middle class population will be launched. The Eyewear Division
is keenly pursuing the task of being the most preferred optical store and
consolidating its leadership position in the country.
Overall, the year 2011-12
will be a year where the Company would drive for strong and profitable growth
in all its Indian consumer businesses, retain focus on elimination of wasteful
costs, and skillfully navigate the international businesses which will continue
to pose challenges due to sluggish demand in some of the geographies.
FIXED ASSETS:
- Land –
Freehold
- Land –
Leasehold
- Plant,
Machinery and Equipment
- Furniture,
Fixtures and Equipment
- Vehicles
- Intangible
Assets – Trade Marks
AUDITED FINANCIAL RESULTS
FOR THE PERIOD ENDED 31 MARCH 2012
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Year Ended |
|
|
|
|
31.03.2012 (Unaudited) |
31.12.2011 (Unaudited) |
31.03.2012 (Audited) |
|
1. |
Net Sales/Income
from Operations |
22814.200 |
24401.000 |
88383.800 |
|
|
Other
operating income |
3.500 |
3.000 |
9.000 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Consumption
of raw materials |
16661.300 |
12547.200 |
61450.800 |
|
|
Purchase
of traded goods |
1497.700 |
3080.100 |
11508.800 |
|
|
Changes
in inventories of finished goods, work in progress and stock-in-trade |
(1195.200) |
2660.800 |
(7518.600) |
|
|
Employee
cost |
1088.200 |
979.100 |
3923.400 |
|
|
Advertising
|
800.400 |
1205.100 |
3814.200 |
|
|
Depreciation
/ Amortisation |
124.900 |
119.200 |
449.000 |
|
|
Other
expenditure |
1891.200 |
1680.100 |
6875.800 |
|
|
Total expenditure |
20868.500 |
22271.600 |
80503.400 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
1949.200 |
2132.400 |
7889.400 |
|
|
|
|
|
|
|
4. |
Other Income |
251.900 |
244.400 |
932.100 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
2201.100 |
2376.800 |
8821.500 |
|
|
|
|
|
|
|
6. |
Interest |
131.200 |
129.400 |
437.100 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
2069.900 |
2247.400 |
8384.400 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
2069.900 |
2247.400 |
8384.400 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
|
|
|
|
|
a) Current tax |
683.800 |
606.900 |
2389.000 |
|
|
b) Deferred tax |
(5.670) |
1.400 |
(5.290) |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
1442.800 |
1639.100 |
4605.500 |
|
|
|
|
|
|
|
12. |
Income Tax earlier years |
-- |
-- |
46.800 |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
1442.800 |
1639.100 |
6001.500 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
887.800 |
887.800 |
887.800 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
13611.200 |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per Share (EPS) (Rs.)-Not
Annualised |
1.63 |
1.85 |
6.76 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
416778240 |
413196612 |
416778240 |
|
|
- Percentage of Shareholding |
46.90 |
46.50% |
46.90% |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
471007920 |
474589548 |
471007920 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100% |
100% |
100% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
53.1% |
53.50% |
53.10% |
SEGMENT RESULTS
(Rs. in millions)
|
Particulars |
Quarter Ended |
Year Ended |
|
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
Net sales / Income from segments |
|
|
|
|
|
|
|
|
|
Watches |
4138.300 |
3831.100 |
15297.600 |
|
Jewellery |
17996.700 |
19858.700 |
70641.600 |
|
Others |
919.700 |
942.200 |
3288.100 |
|
Corporate(Unallocated) |
14.900 |
16.400 |
97.600 |
|
|
|
|
|
|
Total |
23069.600 |
24648.400 |
89324.900 |
|
|
|
|
|
|
Profit
/ (Loss) from segments before interest and taxes |
|
|
|
|
|
|
|
|
|
Watches |
534.000 |
480.400 |
2167.600 |
|
Jewellery |
1822.500 |
1904.400 |
6975.500 |
|
Others |
(46.500) |
51.200 |
(44.800) |
|
|
|
|
|
|
Total |
2310.000 |
2436.000 |
9098.300 |
|
|
|
|
|
|
Less
: Interest |
131.200 |
129.400 |
437.100 |
|
Unallocable
expenditure net of unallocable income |
108.900 |
59.200 |
276.800 |
|
|
|
|
|
|
Profit before taxes |
2069.900 |
2247.400 |
8384.400 |
|
|
|
|
|
|
Capital Employed |
|
|
|
|
|
|
|
|
|
Watches |
5039.800 |
4864.700 |
5039.800 |
|
Jewellery |
6386.300 |
7389.300 |
6386.300 |
|
Others |
1710.700 |
1656.100 |
1710.700 |
|
Corporate(Unallocated) |
1437.400 |
1170.700 |
1437.400 |
|
|
|
|
|
|
Total |
14574.200 |
15080.800 |
14574.200 |
NOTES:
STATEMENT OF ASSETS AND LIABILITIES
(Rs. in
millions)
|
Particulars |
As on 31.03.2012 |
|
SHAREHOLDERS FUNDS |
|
|
1] Share Capital |
887.800 |
|
2] Reserves & Surplus |
13611.200 |
|
LOAN FUNDS |
14499.000 |
|
DEFERRED TAX LIABILITIES |
748.800 |
|
|
|
|
TOTAL |
15247.800 |
|
|
|
|
FIXED ASSETS [Net Block] |
3935.800 |
|
INVESTMENT |
160.500 |
|
DEFERREX TAX ASSETS |
37.700 |
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
Inventories |
28786.700 |
|
Sundry Debtors |
1631.100 |
|
Cash & Bank Balances |
9605.300 |
|
Loans & Advances |
2511.900 |
|
Other current assets |
326.300 |
|
Total Current
Assets |
42861.300 |
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
Current Liabilities |
29380.600 |
|
Provisions |
2366.900 |
|
Total Current
Liabilities |
31747.500 |
|
Net Current
Assets |
11113.800 |
|
|
|
|
TOTAL |
15247.800 |
1. Pursuant to the Scheme of
Amalgamation of Tanishq (India) Limited (wholly owned subsidiary of the
Company) with the Company as sanctioned by the High Court of Karnataka, and
which came in to effect on 6 January 2012, all assets and liabilities have been
transferred to and vested in the Company from the appointed date 1 April 2010.
Accordingly, the figures reported for quarter ended 31 March 2012, 31 December
2011 and year ended 31 March 2012 are after considering the amalgamate and the
figures reported for the quarter and year ended 31 March 2011 do not include
the effect of amalgamation.
2. The Company's primary segments
consist of Watches, Jewellery and Others, where the 'Others' include Eyewear,
Precision Engineering,
3. a) The Debt Equity ratio, Debt Service Coverage and Interest Service
Coverage ratios have been calculated as under Debt Equity Ratio = Total Loan
Funds / (Share Capital + Reserves and Surplus - Hedging Reserve - Intangible
Assets) Debt Service Coverage Ratio =
Profit before Finance costs and Tax / (Interest on Long Term Debt + Principal
Repayment during the year) Interest Service Coverage Ratio = Profit before
Finance costs and Tax / Finance costs
b) The 6.75% non-convertible debentures aggregating Rs. 5,28.300 Millions
were redeemed during the year.
4. Pursuant to the approval of the
Shareholders through Postal Ballot, the Board of Directors of the Company at
its Meeting held on 14 June 2011 had approved the sub-division of its equity
share of the face value of Rs.10 each in to 10 (ten) equity shares of Re.1 each
and also for the capitalization of an amount of Rs. 443.893 Millions from
General Reserve Account of the Company towards issue and allotment as fully
paid-up Bonus Shares in the ratio of 1 (one) Equity Share for every existing
Equity Share held by the Equity Shareholders on the Record Date i.e., 24 June
2011.
5. The figures for the quarter ended 31 March 2012 are
the balancing figures between audited figures in respect of the full financial
year and the year to date figures upto the third quarter.
6. The Directors have recommended a dividend of 175%,
viz. Rs.1.75 per share (previous year : 250%).
7. The figures of the previous year / period have been
regrouped/recast, where necessary.
8. The above statement of Financial results for the year
ended 31 March 2012 of the Company, and the Consolidated Financial results of
the Company with its subsidiaries and associate, prepared as per the Accounting
Standards AS-21 and AS-23 were approved by the Board of Directors at their
meeting held on 30 April 2012.
WEB SITE DETAILS
COMPANY PROFILE
Subject is the organization that brought about a paradigm shift in the
Indian watch market when it introduced its futuristic quartz technology, complemented
by international styling. With
The success story began in 1984 with a joint venture between the Tata
Group and the Tamil Nadu Industrial Development Corporation. Presenting Titan
quartz watches that sported an international look, Titan Industries transformed
the Indian watch market. After Sonata, a value brand of functionally styled watches
at affordable prices, Titan Industries reached out to the youth segment with
Fastrack, its third brand, trendy and chic. The company has sold 135million
watches world over and manufactures 13 million watches every year.
With a license for premium fashion watches of global brands, Subject
repeated its pioneering act and brought international brands into Indian
market. Tommy Hilfiger and FCUK as well as the Swiss made watch – Xylys owe
their presence in Indian market to Titan Industries.
Entering the largely fragmented Indian jewellery market with no known
brands in 1995, Titan Industries launched
Subject has also made its foray into eyewear, launching Fastrack eyewear
and sunglasses, as well as prescription eyewear. The organization has leveraged
its manufacturing competencies and branched into precision engineering products
and machine building.
With over 826 retail stores across a carpet area of over 10,08,083 sq.
Backed by over 6,000 employees, two exclusive design studios for watches
and jewellery, 9 manufacturing units, and innumerable admirers world over,
Titan Industries continues to grow and sets new standards for innovation and
quality. The organization is all geared to repeat the Titan and Tanishq success
story with each new offering.
NEWS
PRESS REALEASE
Titan Industries
announces outstanding results for the year ended March 2012
Subject
had an extremely good 2011-12 and came up with an outstanding performance in a
challenging economic environment. Sales income for the year 2011-12 was
Rs. 88383.800 Millions registering a growth of 35.5% over last year.
Titan Industries pursued aggressive growth during 2011-12 in all its
business. The Company invested in many strategic initiatives taking into
account long term and sustainable growth. All these backed by the talent
and commitment of employees and business associates have helped Titan
Industries register this encouraging growth.
Profit
before tax for the Company grew by 40% to Rs. 8384.400 Millions and net profit
too grew by 39.4% over last year to Rs. 6001.500 Millions
The strength
of its brands and consumer sentiment reflected in consistent sales growth
across all retail formats of watches, jewellery and eyewear.
The
Watches business of the Company recorded an income of Rs.15297.600 Millions, a
healthy growth of 20.3%. This was achieved through excellent planning and
execution of key initiatives. The income from Jewellery segment grew by
39.8%, crossing the Rs.70000.000 Millions mark to Rs.70641.600 Millions.
The profit, before interest and taxes, from the jewellery segment was
Rs.6975.500 Millions for the year. The income from other segments comprising of
Precision Engineering, a B2B Business, the Eyewear business and accessories
grew by 34.8% from Rs.2438.100 Millions to Rs.3288.100 Millions. The Eyewear
business expanded rapidly during the year and touched the mark of 200 stores,
of Titan Eye Plus, across 70 towns. The Precision Engineering also
performed very well as the Aerospace and Automotive industries showed signs of
recovery from the impact of global economic crisis.
The year
witnessed aggressive expansion of its retail network with an addition of over
200 stores by Watches, Jewellery and Eyewear businesses. As on 31st March
2012, the Company had 827 stores, with over 1 million sq.ft of retail space
delivering a retail turnover in excess of Rs.8500 Millions.
Mr.
Bhaskar Bhat, Managing Director of the Company stated that “It has been a
challenging yet fruitful year for Titan Industries Limited. In fact, the
Company has moved on to a new platform of performance as well as future
expectations. Given the high expectations of all our stakeholders and
aspirations of our employees, we move confidently into the new financial year.”
After
considering the excellent performance of the Company, the directors have recommended
a dividend of 175%.
Titan Industries LIMITED: Revenues up 37% over last year Q2
Titan Industries Limited: Revenues up 37% over last year Q2
After a record performance in the first quarter of 2011-12, Titan Industries
Limited continued to record growth in top line and profits in Q2. The
overall income in the second quarter, July to September 2011, was Rs.21245.800
Millions, a growth of 37% over last year’s income of Rs.15512.200 Millions
during the same period. The income for April to September 2011, the first
half of this financial year, stands at Rs.41725.100 Millions, registering a
growth of 48.4% over last year.
The news on profits is also encouraging. The net profit for Q2 is
Rs.1482.000 Millions, up from Rs.1277.700 Millions last year – a growth of 16%.
The net profit for the six months ended September 2011 is Rs.2915.600
Millions, up 39.5% over last year. The profit before tax is Rs.2095.800
Millions for Q2 and Rs.4061.300 Millions for the first half. The Company
and, in particular, the Watch business was affected by input cost increases and
adverse currency fluctuations leading to pressure on margins.
All businesses of the Company have recorded good performance compared to
last year due to good retail sales growth. The income for watches was
Rs.4174.100 Millions in Q2 as compared to Rs.3594.300 Millions last year, a
growth of 16.1%. On the other hand jewellery business recorded an income
growth of 44.7% in Q2 over last year. It had an income of Rs.16312.300
Millions this year in Q2 as compared to Rs.11273.600 Millions last year.
Other businesses of the Company comprising Precision Engineering, a B2B
business, the Eyewear business and accessories grew by 16.3% in Q2. The
combined income of these businesses was Rs.651.700 Millions in Q2. Their
last year income for Q2 was Rs.560.300 Millions.
The Titan Industries retail chain is 737 stores strong, as on 30th
September 2011 with a retail area crossing 9.2 lac sq. ft. nationally for all
its brands.
Mr. Bhaskar Bhat, Managing Director of the Company stated that “The
second quarter has been a healthy quarter for us recording an income growth of
37% despite a slowdown being witnessed by the economy. This performance
was driven by good retail growth for most of our brands and various initiatives
undertaken by all businesses to introduce exciting products and enhance
customer satisfaction. During the second quarter considered as an
‘off-season’ quarter, demand had to be stimulated through investment in
advertising and in consumer offers. This strategy has helped keep retail
sales growing – such investment are likely to continue through Q3.”
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 55.26 |
|
|
1 |
Rs. 86.80 |
|
Euro |
1 |
Rs. 69.63 |
INFORMATION DETAILS
|
Report Prepared
by : |
ACH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
Yes |
|
--LITIGATION |
YES/NO |
Yes |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
No |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
No |
|
--EXPORT ACTIVITIES |
YES/NO |
Yes |
|
--AFFILIATION |
YES/NO |
Yes |
|
--LISTED |
YES/NO |
Yes |
|
--OTHER MERIT FACTORS |
YES/NO |
Yes |
|
TOTAL |
|
69 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.