MIRA
INFORM REPORT
|
Report Date : |
03.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
TITAN COMPANY LIMITED (w.e.f. 01.08.2013) |
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Formerly Known As : |
TITAN INDUSTRIES LIMITED |
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Registered Office : |
3, SIPCOT Industrial Complex, Hosur – 635126, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
26.07.1984 |
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Com. Reg. No.: |
18-001456 |
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Capital
Investment / Paid-up Capital : |
Rs.887.786
Millions |
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CIN No.: [Company
Identification No.] |
L74999TZ1984PLC001456 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHET08980G |
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PAN No.: [Permanent
Account No.] |
AAACT5131A |
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Legal Form : |
A Public Limited Liability company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturer and Seller of Watches, Jewellery Pieces, Table
Clocks, etc. |
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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 (70) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 78590000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a joint venture between the joint venture between the Tata
Group and Tamil Nadu Industrial Development Corporation Limited (TIDCO). It is a well established and reputed company having fine track record. Financial position of the company appears to be sound. Directors are
reported to be experienced and respectable businessmen. Over all fundamentals of the company appears to be strong and healthy. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. Company can be considered good for normal 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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India |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International Finance
Corporation expects to come out with its rupee linked bonds issue before the
end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs
41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched
in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA+ (Long Term Rating) |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
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Date |
25.09.2013 |
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Rating Agency Name |
CRISIL |
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Rating |
A1+ (short Term Rating) |
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Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
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Date |
25.09.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
3, SIPCOT Industrial Complex, Hosur – 635126, Tamilnadu, India |
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Tel. No.: |
91-4344-664199 |
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Fax No.: |
91-4344-276037 |
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E-Mail : |
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Website : |
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Corporate Office : |
Golden Enclave, Tower A, |
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Tel. No.: |
91-80-66609000/ 66609027 |
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Fax No.: |
91-80-25269923/ 25263001 |
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E-Mail : |
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Watch Plant 1 : |
Plot Nos.3, 4 and 5, SIPCOT Industrial Complex, Hosur – 635126,
Tamilnadu, India |
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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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Watch Plant 4 : |
Plot No. C1, C2, C3, Khasra No. 37, Village Bantakheri, Tehsil -
Roorkee, District - Haridwar, Uttaranchal, India |
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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 |
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Precision Engineering Plants 1 : |
No.15 B, Bommasandra Industrial Area, Hosur Road, Anekal Taluka, Bangalore
- 562158, Karnataka, India |
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Precision Engineering Plants 2 : |
Plot Nos. 27 and 28, SIPCOT Industrial Area, Hosur - 635126,
Tamilnadu, India |
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Jewellery Plants 1 : |
29, SIPCOT Industrial Complex, Hosur - 635126, |
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Jewellery Plants 2 : |
Khasra No. 238, Kuanwala Dehradun - 248001, Uttaranchal, India |
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Jewellery Plants 3 : |
Plot No.10 A, Sector II E, SIDCUL, Pantnagar, District Udham Singh |
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Prescription
Eyewear Lens Laboratory : |
Plot No. 27, Survey No.125, KIADB Industrial Area, Chikaballapur -
562101 Karnataka, India |
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Overseas Branch Office : |
Unit No. 11 and 12, 20/F, Metro Loft No. 38, Kwai Hei Street, Kwai
Chung N T, Hong Kong |
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Tel No.: |
00852
64716536 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Hans Raj Verma, |
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Designation : |
Chairman |
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Name : |
Mr. N. Sundaradevan |
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Designation : |
Director |
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Name : |
Mr. Vikram Kapur |
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Designation : |
Director |
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Name : |
Mr. K. Dhanavel |
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Designation : |
Director |
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Name : |
Mr. N.S. Palaniappan |
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Designation : |
Director |
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Name : |
Mr. V. Parthasarathy |
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Designation : |
Director |
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Name : |
Mr. T.K. Arun |
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Designation : |
Director |
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Name : |
Mr. Bhaskar Bhat |
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Designation : |
Managing Director |
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Name : |
Mr. Ishaat Hussain |
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Designation : |
Director |
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Name : |
Mr. N.N. Tata |
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Designation : |
Director |
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Name : |
Mr. T.K. Balaji |
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Designation : |
Director |
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Name : |
Mr. C.G. Krishnadas Nair |
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Designation : |
Director |
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Name : |
Ms. Vinita Bali |
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Designation : |
Director |
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Name : |
Ms. Hema Ravichandar |
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Designation : |
Director |
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Name : |
Mr. R. Poornalingam |
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Designation : |
Director |
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Name : |
Mr. Das Narayandas |
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Designation : |
Director |
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Name : |
Ms. Ireena Vittal |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. A.R. Rajaram |
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Designation : |
Head- Legal and
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category of Shareholder |
No. of Shares |
% of No. of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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|
247476720 |
27.88 |
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223531200 |
25.18 |
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|
471007920 |
53.05 |
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Total shareholding of Promoter and Promoter Group (A) |
471007920 |
53.05 |
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(B) Public Shareholding |
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|
5901585 |
0.66 |
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217866 |
0.02 |
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|
8477233 |
0.95 |
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|
199127225 |
22.43 |
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213723909 |
24.07 |
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|
9675672 |
1.09 |
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|
98606551 |
11.11 |
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|
94391616 |
10.63 |
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|
380492 |
0.04 |
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|
371492 |
0.04 |
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|
9000 |
0.00 |
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|
203054331 |
22.87 |
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Total Public shareholding (B) |
416778240 |
46.95 |
|
Total (A)+(B) |
887786160 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
887786160 |
0.00 |
(1) Indian
Central Government / State Government(s)
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Watches, Jewellery Pieces,
Table Clocks, etc. |
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Products : |
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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) |
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Bankers : |
·
Canara Bank ·
Bank of Baroda ·
The Hongkong and Shanghai Banking Corporation Ltd ·
Standard Chartered Bank ·
Oriental Bank of Commerce ·
Union Bank of India ·
Indian Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins
and Sells Chartered Accountant |
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Prompters : |
·
Tamilnadu Industrial Development Corporation
Limited ·
Tata Sons Limited |
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Subsidiaries : |
·
Titan TimeProducts Limited ·
Titan Properties Limited ·
Favre Leuba AG |
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Associates : |
· TVS Wind Power Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs.10/- each |
Rs.1200.000 Millions |
|
4000000 |
Preference Shares |
Rs.100/- each |
Rs.400.000 Millions |
|
|
TOTAL |
|
Rs.1600.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
88778600 |
Equity Shares |
Rs.10/- each |
Rs.887.786 Millions |
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|
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
887.786 |
887.786 |
443.893 |
|
(b) Reserves & Surplus |
18760.917 |
13611.182 |
9809.903 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
19648.703 |
14498.968 |
10253.796 |
|
|
|
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(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
58.889 |
94.511 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
15.182 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
25.308 |
|
(d) long-term provisions |
628.960 |
575.529 |
415.238 |
|
Total Non-current Liabilities (3) |
628.960 |
634.418 |
550.239 |
|
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|
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(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
20972.637 |
18882.273 |
15227.009 |
|
(c) Other current
liabilities |
14565.802 |
10553.025 |
9539.009 |
|
(d) Short-term provisions |
2931.775 |
2366.930 |
1785.560 |
|
Total Current Liabilities (4) |
38470.214 |
31802.228 |
26551.578 |
|
|
|
|
|
|
TOTAL |
58747.877 |
46935.614 |
37355.613 |
|
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II.
ASSETS |
|
|
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|
(1) Non-current assets |
|
|
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|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4402.196 |
3577.545 |
2695.662 |
|
(ii) Intangible Assets |
84.179 |
109.706 |
135.023 |
|
(iii) Capital
work-in-progress |
416.624 |
248.521 |
166.428 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
185.090 |
160.490 |
91.276 |
|
(c) Deferred tax assets (net) |
80.378 |
37.749 |
0.000 |
|
(d) Long-term Loan and Advances |
1844.073 |
1279.408 |
1215.275 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
7012.540 |
5413.419 |
4303.664 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
36779.449 |
28786.690 |
19938.287 |
|
(c) Trade receivables |
1637.909 |
1631.094 |
1136.789 |
|
(d) Cash and cash
equivalents |
11365.454 |
9605.300 |
10964.990 |
|
(e) Short-term loans and
advances |
1857.304 |
1172.781 |
855.938 |
|
(f) Other current assets |
95.221 |
326.330 |
155.945 |
|
Total Current Assets |
51735.337 |
41522.195 |
33051.949 |
|
|
|
|
|
|
TOTAL |
58747.877 |
46935.614 |
37355.613 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
101126.708 |
88383.784 |
65208.951 |
|
|
|
Other Income |
1007.709 |
941.140 |
560.763 |
|
|
|
TOTAL (A) |
102134.417 |
89324.924 |
65769.714 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
67729.183 |
61450.816 |
43448.782 |
|
|
|
Purchase of Stock In Trade |
15550.954 |
11508.828 |
8495.823 |
|
|
|
Employee benefits expenses |
4845.251 |
3923.434 |
3651.300 |
|
|
|
Other Expenses |
11023.901 |
10689.855 |
8496.616 |
|
|
|
Changes in inventories of Finished goods, work in progress and stock
in trade |
(8128.842) |
(7518.513) |
(5002.814) |
|
|
|
TOTAL (B) |
91020.447 |
80054.420 |
59089.707 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11113.970 |
9270.504 |
6680.007 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
506.400 |
437.153 |
345.173 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
10607.570 |
8833.351 |
6334.834 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
544.889 |
448.962 |
344.825 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
10062.681 |
8384.389 |
5990.009 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2810.871 |
2382.830 |
1685.859 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
7251.810 |
6001.559 |
4304.150 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1973.149 |
1604.757 |
1268.990 |
|
|
|
Other Earnings |
5.228 |
3.537 |
2.504 |
|
|
TOTAL EARNINGS |
1978.377 |
1608.294 |
1271.494 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
28695.742 |
39496.642 |
28995.768 |
|
|
|
Stores & Spares |
101.686 |
78.156 |
58.171 |
|
|
|
Capital Goods |
205.998 |
226.441 |
41.257 |
|
|
TOTAL IMPORTS |
29003.426 |
39801.239 |
29095.196 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
8.17 |
6.76 |
4.85 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
7.10
|
6.72 |
6.54 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.95
|
9.49 |
9.19 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.33
|
18.04 |
16.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.51
|
0.58 |
0.58 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00
|
0.00 |
0.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.35
|
1.31 |
1.24 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
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------------------------------------------------------------------------------------------------------------------------------
CHENNAI
COURT
CASE
STATUS INFORMATION SYSTEMS
|
Case Status |
Pending |
|
Status of: |
Writ Petition |
|
Case No: |
5382 |
|
Year |
2009 |
|
Petitioner |
M/s. Preeti Marketing |
|
Responded: |
Titan Industries Limited |
|
Pet’s Advocate: |
M/s. Kurian and Kurian |
|
Res’s Advocate: |
M/s. M. S. Bharath |
|
Category |
Genertal Miscellaneous |
|
|
Last Listed On:
No Date Mentioned |
|
Case Updated on: |
December 8, 2009 |
------------------------------------------------------------------------------------------------------------------------------
VIEW INDEX OF
CHARGES
|
S. No |
Charge ID |
Date of Charge Creation /Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN |
|
1 |
10451443 |
10/09/2013 |
18,565,000,000.00 |
CANARA BANK |
PRIME CORPORATE BRANCH, NO.25, SHANKARANARAYANA
BLDG M.G ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
B85906733 |
|
2 |
10158230 |
21/05/2009 * |
244,000,000.00 |
HSBC BANK (MAURITIUS) LIMITED |
6TH FLOOR, HSBC CENTRE, CYBER CITY, EBENE,
- 000000, MAURITIUS |
A63005292 |
|
3 |
80042817 |
08/10/2004 |
250,000,000.00 |
INDIAN BANK |
CREDIT DEPARTMENT, 110 M G ROAD,
BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
4 |
80033180 |
27/08/2004 |
250,000,000.00 |
ORIENTAL BANK OF COMMERCE |
26 HJS CHAMBERS, RICHMOND ROAD, BANGALORE,
KARNATAKA - 560025, INDIA |
- |
|
5 |
90007139 |
18/08/2003 |
110,000,000.00 |
CANARA BANK |
CORPORATE SERVICE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
6 |
90007127 |
09/07/2003 |
100,000,000.00 |
CANARA BANK |
CORPORATE SERVICE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
7 |
90007106 |
26/03/2003 |
167,000,000.00 |
BANK OF BARODA |
CORPORATE BANKING BRANCH H.J.S. CHAMBERS, 1ST
FLOOR 26; RICHMOND ROAD, BANGALORE, KARNATAKA - 560025, INDIA |
- |
|
8 |
90007085 |
22/11/2002 |
200,000,000.00 |
CANARA BANK |
TRINITY CIRCLE BRANCH SHANKAR NARAYANA,
BUILDING |
- |
|
9 |
90007071 |
17/09/2002 |
200,000,000.00 |
CANARA BANK |
TRINITY CIRCLE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD,
BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
10 |
90154815 |
06/06/1996 |
825,000.00 |
THE JANAKALYAN SAHAKARI BANK LIMITED |
VIVEK DARSHAN; OPP. BHAKTI BHAVAN,
CHEMBUR, BOMBAY, MAHARASHTRA - 400071, INDIA |
- |
|
11 |
90153280 |
20/05/1996 |
75,000.00 |
THE JANAKALYAN SAHAKARI BANK LIMITED |
VIVEK DARSHAN; OPP. BHAKTI BHAVAN,
CHEMBUR, BOMBAY, MAHARASHTRA - 400071, INDIA |
- |
|
12 |
90006470 |
17/04/2002 * |
20,000,000.00 |
CANARA BANK |
TRINITY CIRCLE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD,
BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
13 |
90006469 |
05/06/2012 * |
26,000,000,000.00 |
CANARA BANK (LEADER) |
PRIME CORPORATE BRANCH SHANKAR NARAYANA
BUILDING, NO. 25, M.G.ROAD,
BANGALORE, KARNATAKA - 560001, |
B42427294 |
|
14 |
90006451 |
02/09/1988 * |
131,250,000.00 |
CANARA BANK |
112; J.C.ROAD, BANGALORE, TAMIL NADU -
560002, INDIA |
- |
|
* Date of charge modification |
||||||
FINANCIAL RESULTS
On the back drop
of a challenging economic environment in 2012-13 where the GDP growth was only
around 5%, the Company turned out a very good performance.
In 2012-13, the Company’s
sales income grew by 13.8% to Rs. 102063.600 Millions compared with Rs.
89708.600 Millions in the previous year. Profit before tax grew by 20% from Rs.
8384.400 Millions to Rs. 10062.700 Millions and the net profit grew by 20.8% to
Rs. 7251.800 Millions.
2012-13 was a
challenging year for the Watches segment which grew by 9.6% to Rs. 16758.700
Millions. The consumer / retail sentiment remained subdued during most parts of
the year. Numbers of wedding dates were much lower compared to 2011-12. This is
reflected in the moderate growths recorded by most of their brands.
Malls and
Department stores also witnessed lower walk-ins. The retail growth in the Multi
Brand Outlet channel has been lower than the growth seen in the World of Titan
and the Fastrack stores.
The main focus of
the marketing efforts for the flagship brand Titan during the year was to
showcase the design supremacy of their watches as well as enhance the image
through the product offerings at the premium end of the spectrum.
Fastrack ran
impactful marketing campaigns for each of its product categories and had
successful activations. The brand continued its strong presence on the social
media network through innovative digital campaigns, which led to increase in
its fan base on Facebook to 5.9 million.
Brand Sonata’s
marketing campaigns and collections were targeted towards the youth by offering
contemporary products. Sonata’s “Ocean series” collection with India’s first
touch screen watch was an unprecedented success.
The Company’s Jewellery
Division sales grew by 14.8% to Rs. 81079.900 Millions, facing a challenging
year in recent times on sales growth. Customer sentiments were affected by the
inflation, uncertain economic conditions and the movements in gold rate,
resulting in poor walk-ins, which was more pronounced during the first half of
2012-13.
The Government and
the Reserve Bank of India have also initiated few measures to contain the
Current Account Deficit and Money laundering, to cite a few, by increasing the
customs duty on gold, restricting the credit period on gold imports, extending
the provisions of Prevention of Money Laundering Act, 2002 as amended, to Gem
and Jewellery sector etc. The final notifications on some of these are still
awaited.
However, in early
June 2013, the Reserve Bank of India made some very significant changes to the
gold import policy to help curb the Current Account Deficit. Credit of any
nature has been discontinued for gold imported for domestic consumption.
This will affect
the Company’s financials by forcing it to resort to other means of funding that
could be more expensive.
The Company is
supportive of the measures taken by the Reserve Bank of India to address the
serious economic condition and the Management is currently working on various
options to mitigate the adverse impact of this change.
The Company’s
Eyewear Division, Accessories and Precision Engineering revenues cumulatively
grew by 25.9% to Rs. 4140.300 Millions.
The year 2012-13 was
a year of transformation for the Eyewear Business of the Company and the brand
is progressing towards its rightful place in the consumer’s mind as per the
latest brand health study. The transformation was on multiple fronts starting
with product portfolio and mix, pricing, advertising, the store experience,
merchandising, manufacturing, sourcing as well as store staff incentives and
franchisee partnering.
The B2B Precision
Engineering Division also continued its momentum during the year despite a
challenging economic environment both within India and outside.
The year witnessed
expansion of the Company’s retail network with a net addition of 126 stores
(2.35 lakh sq. ft.) across watches, jewellery and eyewear businesses. As at 31st
March 2013, the Company had 953 stores with over 1.27 million sq. ft. of retail
space delivering a retail turnover in excess of Rs. 99800.000 Millions.
Capital
investments were also made during the year in the manufacturing facilities of
Watch Division and Precision Engineering Division.
INTERNATIONAL
OPERATIONS
The Company
achieved exports of Rs. 1970.000 Millions during the year comprising watches
and precision engineered components; registering a growth of 23% over the
previous year.
The international
markets for watches posed challenges with the continuing slow down in retail in
South East Asia, SAARC markets and most of the Middle East countries due to
economic uncertainty. The Company’s presence in Philippines has now been
extended to 50 retail points. Titan was the official sponsor for the
International Penang Bridge Marathon in Malaysia reinforcing their growing
brand stature.
FINANCE
During the year,
the Company generated a net cash of Rs. 4530.000 Millions from operations.
After payments towards capital expenditure, repayment of borrowings, interest
and dividend, the net cash accruals during the year was Rs. 1750.000 Millions.
The Company repaid
borrowings of Rs. 54.200 Millions during the year and incurred Rs. 1664.300
Millions as capital expenditure in respect of refurbishment and expansion
programmes for manufacturing, retail outlets and IT hardware systems.
As on 31st March
2013, there were no fixed deposits held by the Company from the public,
shareholders and employees other than unclaimed deposits amounting to Rs. 0.400
Million.
An amount of Rs.
3181.000 Millions was transferred to the general reserve.
During the year,
the Company made payments aggregating Rs. 11128.600 Millions by way of taxes
(central, state and local) and duties as against Rs. 9925.700 Millions in the
previous year.
Post the changes
in the gold import policy announced by the Reserve Bank of India on 4th June
2013, the Company is exploring alternate options to fund the working capital
requirements.
SUBSIDIARIES
As on 31st March 2013, the Company had the following subsidiaries:
1) Titan TimeProducts Limited, Goa
2) Favre Leuba AG, Switzerland
In 2012-13, Titan Time Products Limited sold 8.12
million (2011-12: 8.99 million) electronic circuit boards with a net profit of
Rs. 9.989 Millions (2011-12: Rs. 102.94
lakhs). Favre Leuba AG, Switzerland was incorporated on January 13, 2012 as a
limited liability company owning the trademarks, Favre Leuba.
As at 31.3.2013, Favre Leuba AG had a loss of
CHF 63,939, which primarily represents their operating expenses.
Neither of these companies declared a dividend
in 2012-13.
The annual accounts of these subsidiary
companies are consolidated with the accounts of Titan Industries Limited for
2012-13.
The High Court of Madras sanctioned the Scheme
of Amalgamation Filed by Titan Properties Limited, the Company’s wholly-owned
domestic subsidiary, with the Company from the appointed date of April 1, 2011.
Accordingly, the accounts of Titan Properties Limited are merged with the
accounts of Titan Industries Limited.
MANAGEMENT DISCUSSION AND ANALYSIS
THE ECONOMY
The Indian economy is estimated to have grown
at 5% in 2012-13, the lowest in the last ten years .The decline in the GDP
growth was attributable to the continued global economic slow-down coupled with
the poor performance in the domestic sectors - manufacturing, infrastructure,
service and agriculture. High levels of inflation and the continued depreciation
of rupee were clearly impacting the growth. The slowdown in growth significantly
impacted the country’s fiscal deficit and widened the Current
Account Deficit. The Capital goods sector remained weak. High interest
rates and inflation resulted in reduction of disposable incomes of
households contributing to the decline of growth in consumer durables and other
discretionary spends.
BUSINESS OVERVIEW
On the backdrop of a challenging economic
environment in 2012- 13, the Company’s income grew by 14.3% to Rs. 102134.400 Millions compared with Rs. 89324.900 Millions in the previous year. Profit before tax grew
by 20% from Rs. 8384.400 Millions to Rs. 10062.700 Millions and
the net profit grew by 20.8% to Rs. 7251.800 Millions.
WATCHES AND ACCESSORIES DIVISION
THE INDIAN WATCHES MARKET
The Indian Watch market is estimated at around
55 million units and valued at around Rs. 47000.000 Millions. Over 50% of this market is unorganized,
primarily at the low-end and dominated by small players assembling watches illegally,
smuggled watches and fakes.
The organized Watch market is dominated by
Titan, with its collection of brands having a market share exceeding 65%. In a
market where every global brand is now present, including Fossil, Timex, Casio,
Seiko, most Swiss brands and all the fashion brands,
Titan continues to hold its own. Despite a
sluggish economy, poor consumer sentiment and a retail market over-run with
products on deep discounts, Titan registered a 9% value growth in sales. The
Company’s market share in multi-brand outlets also grew to around 49% during
2012-13, a healthy growth of 2% over the previous years.
ACCESSORIES
With the Indian consumer’s propensity to spend
on lifestyle products increasing steadily, the Watch Division has chosen to
extend its strong brands into accessories.
The accessories market is conservatively
estimated to be twice the size of the watch market. The Company first
leveraged the Fastrack brand to launch a slew of new categories like sun
glasses, bags, belts and wallets targeting the youth. With sales of over a
million sun glasses and close to a million bags, belts and wallets, Fastrack
has emerged as one of the most exciting accessory brands for youth in the
country.
Titan, the Company’s flagship brand,
also entered the accessories space recently launching stylish leather belts and
wallets which have so far been very well accepted and is in the process of
being rolled out nationally.
MARKETING AND ADVERTISING
Over the years, the Watch Division has built
some of the country’s best brands. Titan has become synonymous with watches in
India and is recognized world-wide as a brand of stature. Raga the woman’s sub
brand of Titan is uniquely positioned for the Indian women. Fastrack is today
the country’s most exciting brand targeting the youth and its edgy style of
communication resonates with the youth across the length and breadth of India.
Sonata has become the largest volume brand in the country and is amongst the
most aspirational brands in small-town India. Xylys and Zoop, brands targeting
the mid-premium segment and the kids segment respectively, have established
themselves firmly in the hearts and minds of their consumer segments in a
very short period of time.
NETWORK EXPANSION
The Company has the largest retail and distribution
network for watches and accessories in India. Today, its watches are available
in over 9,000 multi-brand dealer outlets across 2,500 towns. Its proprietary
retail network, comprising of World of Titan, Titan One and Fastrack stores,
has grown rapidly. As at the yearend there were 363 World of Titan outlets, 71
Titan One outlets and 140 Fastrack stores across the country. Besides this, the
Company has 742 service centres which provide reliable and timely after-sales-
service.
HELIOS
Launched in 2009, the Helios network envisions
the creation of India’s fi nest retail chain for premium watches. This
chain addresses the fast growing demand for premium and luxury watches in the
country. Over the years the chain has been successful in bringing many international
brands such as Tag Heuer and Fossil, in addition to the brands licensed with
the Company, like Tommy Hilfiger and FCUK. During the year two more
brands were added to the licensing portfolio, Timberland and Police, which are
also retailed out of Helios. The chain added 20 stores during the year taking
the total number of operational stores to 45 at the end of the year.
INTERNATIONAL
The Company’s presence in international
markets strengthened this year on the back of a creditable performance and is
now present in 32 countries and entered two major growing markets - Philippines
and Indonesia – in the year. The focus remains on establishing a good
distribution network before investing for larger growths in the medium term.
Vietnam, Singapore, Malaysia, Thailand in the
Far East, Saudi Arabia, UAE, Qatar and Oman in the Middle-East, Bangladesh, Sri
Lanka and Nepal are the other countries where the Company has a strong
presence. A new retail identity, conceived and designed by a Singapore agency,
was launched and is witnessing accelerated deployment. Titan Kiosks and
shop-in-shop and counters are giving a significant facelift to the brand
in overseas markets. This has attracted attention from several consumer groups
who frequent the modern retail landscape. Coupled with the latest, contemporary
products, effective events, media engagements and smart communication, the
business recorded handsome returns once again. It was significant since
overall retail across international markets declined over the previous year,
given the depressed nature of the economy.
FAVRE LEUBA
Favre Leuba, the heritage Swiss brand that the
Company acquired in 2011-12, is being actively worked on for a launch during
2014- 15. The acquisition dovetails with the Company’s growth agenda in India’s
growing premium and luxury watch market.
MANUFACTURING, TECHNOLOGY AND DESIGN
The focus on automation continues at the
Company’s Watch manufacturing units with a view to improve productivity. The
in-house R & D facility has designed and developed a new multi-eye version
movement for the display of hours, seconds, day and date separately on the
dial.
The Company is setting up a new manufacturing
plant in Coimbatore, Tamil Nadu to manufacture high-end stainless steel cases.
A technical services agreement has been signed between the Company and Seiko
Epson Corp, Japan for this purpose.
The Company’s Innovedge cell which drives
technology for the Watch Division is working on developing many new technology
platforms including changeable watch dial colours, touch screen watches, active
dials, etc.
Product design is at the core of the Watch
Division’s strategy and is the pillar on which the Company’s brands have been
built. During the last year, a number of stunning products were introduced into
the market with the Skeletal Edge watch winning the coveted Red Dot award for
design.
OUTLOOK FOR 2013-14
The Watches and Accessories Division is
looking at the current year with cautious optimism. In a scenario where the
economy is expected to grow at around 6.5%, the rupee is expected to be more
stable and overall market sentiment will be more buoyant, the division is
looking at enhancing growth and profitability. It will invest in its
brands, expand distribution and target market share gains with its strong
portfolio of brands.
JEWELLERY DIVISION
FY 2012- 13 turned out to be a very special year for the jewellery
industry.
1. The rise in the price of gold started tapering off quarter after quarter
during the year, and finally crashing in April 13 to April 12 levels.
2. Many regional players started exhibiting much larger ambitions. Companies
were starting to get listed, much larger stores were being opened across the
country and substantial investments were being made in marketing. P C Jewellers
from North, TBZ from West and Kalyan from South were the notable names.
3. The Government came down heavily on gold in multiple ways: increase of
customs duty to 6%, senior bureaucrats talking about gold as an “unproductive asset”,
RBI working committee recommending 90 days lease period and application of base
interest rate and the inclusion of “Dealers in precious metals and gems” in the
Prevention of Money Laundering Act, 2002.
4. On top of all this, the public sentiment was quite muted, given the inflationary
situation and negative news all around. This showed in reduced consumption of
all discretionary categories, including jewellery.
It is in this context that the sales and
profit growth of the Company’s Jewellery Division needs to be seen.
While the sales growth in FY13 was perhaps the
lowest (in percent terms) in the last decade, the profit growth was among the
highest, taking the division’s EBIT margin beyond the 10% mark the first time
in its history.
Many strategic and tactical initiatives helped the Jewellery Division
achieve these milestones:
1. A very aggressive store expansion plan that helped us set up many medium
and some large stores in key markets. A total of 18 stores were set up with an
area of more than 1.25 lakh sq. ft.
2. A maturing merchandise strategy that helped us to provide the right
assortment in each store and keep that assortment in operation for as many days
during each month as possible.
3. A collection strategy that saw the launch of exciting lines like Ganga,
Mia and Iva that not only generated immediate sales and reinforced their design
leadership, but also started building future segments.
4. A whole new beginning in the Solitaires category (globally huge) through
smart merchandise planning, affordable pricing and marketing campaign built
around Romance
5. A top-of-the-line advertising campaign effort, based on deep customer
insights and loads of creativity, resulting in very effective,
much-talked-about TV commercials throughout the year.
6. A very agile organizational approach to managing product mix, product
margin and every significant element of cost, through all the 4 quarters.
The Management believes that their brands have
actually emerged stronger in 2013 as a result of all these, even as their sales
growth was low. It also believes, based on the following factors that the
5-year prospects of the Division continue to be exceptional:
1. The India Shining story, which provided the tailwind for the Division for
much of the last decade, is still very much there even if less pronounced. They
expect that there will be some acceleration in this story, post 2014 elections.
2. Their brands continue to be very aspirational. Combined with a spotless reputation
for purity and quality and the Tata pedigree, the overall package is
unbeatable.
3. Their distribution reach is exceptional and their street presence now is
very impressive. Their franchisee partners bring a high- quality soft side to
this great network.
4. They share a great professional and warm relationship with some of the
best jewellery manufacturers in India and they continue to help us stay ahead
in innovation and supply chain effectiveness.
5. They are blessed with the most accomplished, motivated and committed
talent in this country and that is the edge that others would really crave to
possess but would always be behind on
With this as background, the Company is
targeting an aggressive sales and financial growth in FY 2014,
underpinned by much of the strategic thrust of FY 2013:
1. A significant expansion of network, taking us into many more new
towns.
2. Introduction of many KVIs (Key Value Indicators, entry products in price
and weight) as well as region-specific products.
3. Many exciting collections, across the category and price spectrum.
4. Focus market initiatives in states or cities where their performance can
be much better.
5. Investing in segments like Work wear (Mia), Fashion (Iva) and Romance
(Solitaires).
6. Insight-based marketing communication efforts.
7. A continuing push of the Golden Harvest scheme.
8. Modernisation of the Hosur plant and the setting up of the full-scale
Pant Nagar plant.
9. Establishing of the first Karigar Centres in Hosur, to accelerate the
transformation of jewellery manufacturing.
PRECISION ENGINEERING DIVISION
In the year
2012-13 the Precision Engineering Division continues to grow strongly on both
topline and bottomline. The business has grown in stature and positioned itself
as a premium solutions provider, a dependable partner and making a presence
globally for its quality and delivery.
The precision
engineering business comprised the following businesses:
PRECISION ENGINEERING COMPONENT AND SUB-ASSEMBLIES
(PECSA):
PECSA caters to
the specialised requirements of the aerospace, defence, oil and gas and
engineering sectors. It supplies parts to leading Tier One aerospace and
defence companies through longterm contracts. PECSA is becoming a default
choice of large multi-national companies in the Aerospace and Defence sector
for precision components and assemblies. The business enjoys near 600 customer
qualified parts that strengthens the future prospects. Moreover a number of
companies, global market leaders in the aerospace industry have grown their
business with the division and are looking at strengthening the relationship.
Machine Building
and Automation (MBA): MBA caters to the assembly line automation needs of
automotive and electrical industries. Around 20 customers were acquired during
the year (total 60) and several export orders were completed. The division
entered the manufacture of assembly lines for medical devices with a potential
for repeat orders. A rising demand for automation will strengthen revenues.
OUTLOOK FOR 2013-14
Despite a
challenging global environment, there is good opportunity for both businesses
to address. Many global majors are looking at India strategically, both in
terms of a lucrative market as well as a destination for cost competitive
solutions. India being a big spender in defence is also creating good offset
opportunities.
The Division is
ideally positioned to capitalize on these opportunities and is seeing a lot of
customer interest for both businesses and has good visible pipeline of business.
FIXED ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Office Equipment
·
Vehicles
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED ON 30TH
SEPTEMBER 2013
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Half Year Ended |
|
|
|
|
30.09.2013 (Unaudited) |
30.06.2013 (Unaudited) |
30.09.2013 (Unaudited) |
|
1. |
Income from
Operations |
|
|
|
|
|
Net Sales |
22900.200 |
30877.900 |
53778.100 |
|
|
Other Operating Income |
389.500 |
198.800 |
588.300 |
|
|
Net Sales/Income
from Operations |
23289.700 |
31076.700 |
54366.400 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of Material Consumed
|
19578.800 |
17895.600 |
37474.400 |
|
|
Purchase of Stock In Trade |
4769.300 |
4847.300 |
9616.600 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
(8350.200) |
1469.200 |
(6881.000) |
|
|
Employee Benefits Expenses |
1345.800 |
1305.700 |
2651.500 |
|
|
Advertising |
943.500 |
1046.700 |
1990.200 |
|
|
Depreciation and Amortization Expenses |
149.000 |
146.100 |
295.100 |
|
|
Other Expenses |
2385.200 |
2062.900 |
4448.100 |
|
|
f) Total |
20821.400 |
28773.500 |
49594.900 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
2468.300 |
2303.200 |
4771.500 |
|
|
|
|
|
|
|
4. |
Other Income |
303.800 |
382.400 |
686.200 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
2772.100 |
2685.600 |
5457.700 |
|
|
|
|
|
|
|
6. |
Interest |
199.500 |
170.300 |
369.800 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
2572.600 |
2515.300 |
5087.900 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
2572.600 |
2515.300 |
5087.900 |
|
|
|
|
|
|
|
10. |
Tax Expense |
706.100 |
690.500 |
1396.600 |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
1866.500 |
1824.800 |
3691.300 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
1866.500 |
1824.800 |
3691.300 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
887.800 |
887.800 |
887.800 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
2.10 |
2.06 |
4.16 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
416778240 |
416778240 |
416778240 |
|
|
- Percentage of Shareholding |
46.9% |
46.9% |
46.9% |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
2559589 |
2559589 |
2559589 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
0.5% |
0.5% |
0.5% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
0.3% |
0.3% |
0.3% |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
468448331 |
468448331 |
468448331 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
99.5% |
99.5% |
99.5% |
|
|
- Percentage of Shares (as a % of the Total Share Capital of
the Company) |
52.8% |
52.8% |
52.8% |
|
Particulars
|
Quarter
Ended 30.09.2013 |
|
Pending at the beginning of the quarter |
2 |
|
Received during the quarter |
2 |
|
Disposed of during the quarter |
4 |
|
Remaining unresolved at the end of the quarter |
-- |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Half Year Ended |
|
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
||
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Watches |
4423.600 |
4016.500 |
8440.100 |
|
|
|
Jewellery |
17980.700 |
26141.600 |
44122.300 |
|
|
|
Others |
1140.700 |
1232.100 |
2372.800 |
|
|
|
Corporate |
48.500 |
68.900 |
117.400 |
|
|
|
|
|
|
|
|
|
|
Total |
23593.500 |
31459.100 |
55052.600 |
|
|
|
|
|
|
|
|
2 |
|
Profit / (Loss)
from Segments Before interest and Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Watches |
464.300 |
414.200 |
878.500 |
|
|
|
Jewellery |
2408.900 |
2305.900 |
4714.800 |
|
|
|
Others |
(2.500) |
28.000 |
25.500 |
|
|
|
|
|
|
|
|
|
|
Total |
2870.700 |
2748.100 |
5618.800 |
|
|
|
|
|
|
|
|
|
|
Less : Finance Costs |
199.500 |
170.300 |
369.800 |
|
|
|
Less : Unallocable Expenditure net of Unallocable Income |
98.600 |
62.500 |
161.100 |
|
|
|
|
|
|
|
|
|
|
Profit Before Taxes
|
2572.600 |
2515.300 |
5087.900 |
|
|
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Watches |
7278.600 |
6990.600 |
7278.600 |
|
|
|
Jewellery |
11514.500 |
10460.100 |
11514.500 |
|
|
|
Others |
1861.800 |
1822.400 |
1861.800 |
|
|
|
Corporate (Unallocated) |
2587.300 |
2191.600 |
2587.300 |
|
|
|
|
|
|
|
|
|
|
Total |
23242.200 |
21464.700 |
23242.200 |
1.
STANDALONE
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
PARTICULARS |
30.09.2013
UNAUDITED |
|
Equity and
liabilities |
|
|
Shareholders'
fund |
|
|
Share capital |
887.800 |
|
Reserve &
surplus |
22428.000 |
|
Sub-total - Shareholders' funds |
23315.800 |
|
Non - current
liabilities |
|
|
Long term
borrowings |
727.500 |
|
Sub-total - Non-current liabilities |
727.500 |
|
Current
liabilities |
|
|
Short term
borrowings |
6069.100 |
|
Trade payables |
20054.200 |
|
Other current
liabilities |
15994.000 |
|
Short term
provisions |
769.400 |
|
Sub-total - Current liabilities |
42886.700 |
|
Total - Equity & Liabilities |
66930.000 |
|
|
|
|
Assets |
|
|
Non-current
assets |
|
|
Fixed assets |
5198.900 |
|
Non-current
investment |
258.200 |
|
Deferred Tax
Asset (Net) |
108.400 |
|
Long term loans
& advances |
2173.000 |
|
Sub-total - Non-current Assets |
7738.500 |
|
Current assets |
|
|
Inventories |
44946.800 |
|
Trade
receivables |
1572.800 |
|
Cash & bank
balances |
8378.900 |
|
Short term loans
& advances |
4176.600 |
|
Other current
assets |
116.400 |
|
Sub-total - Current Assets |
59191.500 |
|
Total – Assets |
66930.000 |
NOTES
2. The name of the company was changed from Titan Industries Limited to
Titan Company Limited with effect from 1st August 2013.
3. The Company’s primary segments consist of Watches, Jewellery and Others, where
the Others’ include Eye wear, Precision Engineering Machine Building, Clocks
and Accessories Capital Employed in segments include all related income and
expenditure.
4. Pursuant to the Scheme of Amalgamation of Titan Properties Limited
(Wholly Owned subsidiary of the company) with the company as sanctioned by the
high court of Chennai, and which came into effect on 26 February 2013, all
assets and liabilities have been transferred to and vested in the Company from
the appointed date 1 April 2011. Accordingly, the figures reported for quarter
ended 30 September 2012 and half year ended 30 September 2012 have been
appropriately recast to give effect to the scheme of Amalgamation and to
incorporate therein the profitability of the merged entity for the period
5. The financial results were reviewed by the Board Audit Committee and were
approved by the Board of Directors at their meeting on 31 October 2013.
6. The auditors have carried out a limited review of the financial results
for the period ended on 30 September 2013, as required by the Listing
Agreement.
WEBSITE DETAILS
NEWS
TITAN TO BUY SWISS
WATCH BRAND FAVRE LEUBA
One of India’s
largest watch makers, Titan Industries, plans to acquire the heritage Swiss
brand Favre Leuba in a €2 million deal.
The company has made
a binding offer with Val family SL Spain and Maison Favre Leuba of Switzerland
for the acquisition. The move is seen as a part of Titan’s aggressive
global plans to expand its product portfolio by adding and acquiring new watch brands.
Favre Leuba is one
of the earliest watch making companies from Switzerland, dating back to 1737.
The acquisition will
“complement and strengthen the existing watches brand portfolio of the company
with a Swiss heritage brand,” Bangalore-based Titan said in its filing to the
Bombay stock exchange.
It plans to peg
Favre Leuba at the premium end of its offerings, which currently includes the
Xylys and Nebula brands.
Titan hopes its new
purchase will expand its presence in this high-growth premium and luxury segment
across the world.
Favre Leuba, which
was being sold through some dealers in India for more than a decade, is among
the most sought after Swiss watch brands. Now Titan hopes to capitalise on that
brand recall.
The Swiss watch
market in India is growing at around 25 per cent a year.
Titan has a growing
presence in the luxury watch segment and also has retailing rights in India for
global premium brands Boss, FCUK and Tommy Hilfiger.
The segment
contributed just under 10 per cent to Titan’s revenues from watches during the
last financial year.
Bhaskar Bhat,
managing director of Titan Industries, said: “We wanted something above Xylys
and we got it. The manufacturing unit of Favre Leuba has been closed for 45
years. We would revive it to re-introduce this Swiss heritage brand globally,
along with India.
“Swiss regulations
allow us to manufacture certain things in that country, while other parts would
be manufactured in India. Our priority is to make this brand a success before
moving ahead.”
DIAMOND INDUSTRY – INDIA
-
From
time immemorial, India is well known in the world as the birthplace for
diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement
of the Indian diamond industry was possible only due to combination of the
manufacturing skills of the Indian workforce and the untiring and unflagging
efforts of the Indian diamantaires, supported by progressive Government
policies.
-
The
area of study of family owned diamond businesses derives its importance from
the huge conglomerate of family run organizations which operate in the diamond
industry since many generations.
-
Some of
the basic traits of family run business enterprises include spirit of
entrepreneurship, mutual trust lowers transaction costs, small, nimble and
quick to react, information as a source of advantage and philanthropy.
-
Family
owned diamond businesses need to improve on many fronts including higher
standard of corporate governance, long-term performance – focused strategies,
modern management and technology.
-
Utmost
caution is to be exercised while dealing with some medium and large diamond
traders which are usually engaged in fictitious import – export, inter-company transactions,
financially assisted by banks. In the process, several public sector banks lost
several hundred million rupees. They mostly diverted borrowed money for diamond
business into real estate and capital markets.
-
Excerpts
from Times of India dated 30th October 2010 is as under –
-
Gem
& Jewellery Export Promotion Council in its statistical data has shown the
export of polished diamonds to have increase by 28 % in February 2013. Compared
to $ 1.4 bn worth of polished diamond export in February, 2012, India exported
$ 1.84 billion worth of polished diamonds in February 2013. A senior executive
of GJEPC said, “Export of cut and polished diamonds started falling month-wise
after the imposition of 2 % of import duty on the polished diamonds. But
February, 2013 has given a new ray of hope to the industry as the export of
polished diamonds has actually increased by 28 %. It means the industry
is on the track of recovery and round tripping of diamonds has stopped
completely.” Demand has started coming from the US, the UK, Japan and China.
India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The
banking sector has started exercising restraint while following prudent risk
management norms when lending money to gems and jewellery sector. This follows
the implementation of Basel III accord – a global voluntary regulatory standard
on bank capital adequacy, stress testing and market liquidity.
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 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 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. 62.73 |
|
UK Pound |
1 |
Rs. 102.14 |
|
Euro |
1 |
Rs. 84.64 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
70 |
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.