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CONTENTS CPTR NO CHAPTERS Executive Summary PAGE NO

Part-A
Industry Profile Company Profile

a. b. c. d. e. f. g. h. i.

Background & Inception of company. Nature of the Business carried. Vision & Mission, Quality Policy. Product & Services. Area of Operation Global/National/Regional Competitor Information Ownership pattern. Infrastructural Facilities. Achievement Awards.

Mckenys 7s Frame Work Swot Analysis Learning Experiences

Part-B
General Introduction:
Statement of the problem. Objectives of the study. Scope of the study. Methodology.

Limitation of the study. Results, Analyses & Discussions Summary of Findings & Suggestions Conclusion Bibliography

INTRODUCTION

Finance is the life-blood of business. It is rightly termed as the science of money. Finance is very essential for the smooth running of the business. Finance controls the policies, activities and decision of every business. Finance is that business activity which is concerned with the organization and conversation of capital funds in meeting financial needs and overall objectives of a business enterprise.- Wheeler Financial management is that managerial activity which is concerned with the planning and controlling of a firm financial reserve. Financial management as an academic discipline has undergone fundamental changes as regards its scope and coverage. In the early years of its evolution it was treated synonymously with the raising of funds. In the current literature pertaining to this growing academic discipline, a broader scope so as to include in addition to procurement of funds, efficient use of resources is universally recognized. Financial analysis can be defined as a study of relationship between many factors as disclosed by the statement and the study of the trend of these factors. The objective of financial analysis is the pinpointing of strength and weakness of a business undertaking by regrouping and analyzing of figures obtained from financial statement and balance sheet by the tools and techniques of management accounting. Financial analysis is as the final step of accounting that result in the presentation of final and the exact data that helps the business managers, creditors and investors. Based on this reasoning, this project is an attempt to analyze the financial performance of TITAN INDUSTRIES LTD. In the financial analysis a ratio is used as an index for evaluating the financial position and performance of the firm. The absolute accounting figures reported in the financial statement do not provide a meaningful understanding of the performance and the financial position of a firm. But the accounting

figures convey the meaning when it is related to some other relation information for example Rs.5 crores net profit may look impressive, but the firms performance can be said good or bad only when net profit figures is related to the firms investment. Titan Industries 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 India's two most recognized and loved brands Titan and Tanishq to its credit, Titan Industries is the fifth largest integrated watch manufacturer in the world. 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 over 135million watches world over and manufactures 13 million watches every year. With a license for premium fashion watches of global brands, Titan Industries 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 Tanishq, India's most trusted and fastest growing jewellery brand. Gold Plus, the later addition, focuses on the preferences of semi-urban and rural India. Completing the jewellery portfolio is Zoya, the latest retail chain in the luxury segment. Titan Industries 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 827 retail stores across a carpet area of over 10,08,083 sq. ft. Titan Industries has Indias largest retail network spanning over 155 towns. The companyhas over 340 exclusive World of Titan' showrooms and over 125 Fastrack stores. It also has a large network of over 700 after-sales-service centers. Titan Industries is also the largest jewellery retailer in India with over 130 Tanishq boutiques and Zoya stores, over 31 Gold Plus stores. It also sports over 204 Titan Eye+ stores. The company has two exclusive design studios for watches and jewellery.

Industry Profile
3.1History of the watch market The Indian watch industry began in the year 1961 with the commissioning of the watch division of HMT. The first watch model manufactured by HMT was the Janata model in the year 1962. HMT was the leader in the watch market till the Tatas formed Titan Watches in association with Tamil Nadu Industrial Development Corporation in the year 1987. They took a major strategy decision, which later changed the face of the Indian watch market- to manufacture only quartz watches. Liberalization in 1992 and the removal of quantitative restrictions due to WTO has opened the doors for many foreign brands in the Indian market viz. Tissot, Swatch, Omega, Rado, TAG Heuer, Rolex and many others. The import duties on watches are falling which makes the Indian market look attractive for the global majors like Casio, Swatch and Citizen.

Titan Industries Limited is engaged in manufacturing of watches, jewelry, precision engineering and Eyewear. The Company has four divisions: watches, jewellery, precision engineering and eyewear. As of March 31, 2012, the Company had 311 World of Titan stores. The Company sold its products through departmental stores, such as Shoppers Stop, Central, Lifestyle, Westside, Pantaloons and Reliance Retail. During the fiscal year ended March 31, 2012, the Company launched collection of watches, such as Purple by Titan, an offering of fashion watches; Raga Aqua, a new collection whose evocative designs were inspired by the oceans and seas; Tycoon by Titan, a new collection of gold look watches; and new products in the automatic watches range, which cater to premium consumers. As of March 31, 2012, the Company had 120 Tanishq stores, 29 Gold Plus stores and two Zoya stores in jewelry division. As of March 31, 2012, the Company had approximately150 exclusive eyewear stores.

Titan Industries 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 India's two most recognized and loved brands Titan and Tanishq to its credit, Titan Industries is the fifth largest integrated watch manufacturer in the world. 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, Titan Industries 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 Tanishq, Indias most trusted and fastest growing jew ellery brand. Gold Plus, the later addition, focuses on the preferences of semi-urban and rural India. Completing the jewellery portfolio is Zoya, the latest retail chain in the luxury segment. Titan Industries 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. ft. Titan Industries has Indias largest retail network. The company has over 331exclusive World of Titan' showrooms and over 83 Fastrack stores. It also has a large network of over 700 aftersales-service centers. Titan Industries is also the largest jewellery retailer in India with over 130 Tanishq boutiques and Zoya stores, over 31 Gold Plus stores. It also sports over 204 Titan Eye+ stores. The company has two exclusive design studios for watches and jewellery 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. Present Situation of the Indian Watch Market The Indian watch market is today of 40 million units, out which 60% is in the unorganized sector in which the maximum number of watches are sold are below Rs.300. Quartz watches form two thirds of the organized sector and the rest is split between mechanical and digital watches. Even in the organized sector, three fourth of the sales by volume comes from watches that are priced below Rs.1000. Watch is one of the consumer durables whose replacement rate is very high. The replacement rate of watch is 33.8% (Source: India market demographics report,

1998). This is also due to the fact that the estimated scrap rate of wrist watches is 7.8%, which is applicable after 6 years (Source: India market demographics report, 1998). So due to high scrap rate, outdated models, and the shift from the mechanical watches to the quartz watches is causing a very high replacement demand for watches. This along with the low penetration levels represent the untapped market potential for watches in India. Major brands in the Indian watch market: The major players in the Indian watch market include HMT, Titan and Timex. The other players include Westar, Shivaki, Maxima, SITCO. Foreign brands such as Cartier, Piaget, Omega, Tiffanys and Corrum, Gucci, Longines, Casio, Citizen, Tag Heuer and Espirit are also making an inroad into the Indian market. Titan has been consolidating its market share over the past decade. Timex

watches, which entered in India with collaboration with Titan, now independently has also gained substantial market share.

COMPANY PROFILE Titan Industries 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 India's two most recognized and loved brands Titan and Tanishq to its credit, Titan Industries is the fifth largest integrated watch manufacturer in the world.

History of Titan

1984
The Company was Incorporated on 26th July, at Chennai. The Manufacture analog electronic watches with a choice of over 150 designs. The company was promoted jointly by Questar Investments, Ltd., a Tata Company with its associates Tata Sons, Ltd., and Tata Press, Ltd., and Tamil Nadu Industrial Development Corporation, Ltd. (TIDCO). The main objective of the company is to manufacture analog electronic watches with a choice of over 150 designs. The Company undertook to set up a plant for the manufacture of quartz analog electronic watches in the State Industries Promotion Corporation of Tamil Nadu, Ltd. Industrial area at Hosur. The Company entered into a collaboration agreement with France Ebauches (FE) of France, manufacturers of watch movements and components, for technical documentation, assistance in procurement of manufacturing equipments, raw materials, etc. The Company proposed to manufacture 2 million digital and ana-digi watches in collaboration with Casio Computer Company of Japan. A MOU was signed between the Company and Casio in November, 1986.

1987
The Company established a manufacturing facility at Hosur for the manufacture of components for watches. In April the Company also issued 5,25,000 - 13.5% secured redeemable partly convertible debentures of Rs 300 each for cash at par. The debentures were allotted on preferential basis: (i) 26,250 debentures to employees/workers of the Company and associate companies (ii) 52,500 debentures to shareholders of Tata

Press Ltd. and (iii) 1,31,250 debentures to NRIs on repatriation basis. The remaining 3,04,500 debentures along with the unsubscribed portion of 78,900 debentures from the preferential quota were offered for public subscription during April. Additional 1,31,250 debentures were allotted to retain over-subscription. The convertible portion of Rs 100 of the face value of each debenture was converted into 10 equity shares of Rs 10 each at the end of three months from the date of allotment of debentures (65,62,500 equity shares were allotted accordingly). The non-convertible portion of Rs 200 of the face value of each debenture was to be redeemed at par at the end of the 10 years from the date of allotment of debentures.

1989
A new range of watches called `Aqura' was launched in December. The case plant at Hosur was commissioned. The plant was to produce 1.5 million watch cases. The project cost was financed partly through internal resources and largely through borrowings from IFC, Washington and the Tamil Nadu Industrial Development Corporation, Ltd The Company set up a satellite case plant at Dehra Dun in Uttar Pradesh with a capacity of 5,00,000 watch cases per annum to improve operating efficiency and reduce costs. During August, the Company issued 2,52,000 - 12.5% convertible debentures of Rs 500 each as follows: (i) 2,40,000 debentures on rights basis in the proportion 1 debenture: 100 equity shares held and (ii) 12,000 debentures to employees/workers of the Company on an equitable basis. A total of 2,84,455

debentures

were

allotted

under

this

issue

including

retention

of

oversubscription. Part `A' of each debenture of face value of Rs 100 was compulsorily and automatically converted into 10 equity shares of Rs 10 each at par on expiry of six months from the date of allotment of debentures. Part `B' of each debenture of the face value of Rs 200 was converted into 4 equity shares of Rs 10 each at a premium of Rs 50 per share on 1.10.92. Part `C' the non-convertible portion of each debenture of face value of Rs 200 was to be redeemed at par at the end of the 10th year from the date of allotment of debentures. The proceeds of the issue were to be utilised to meet a part of the fund requirement of the company's project to manufacture watch cases and other critical components inhouse. The Company proposed to offer 40,26,700-12.5% fully convertible debentures of Rs 100 each on Rights basis in the proportion 2 debs: 20 equity shares held. Another 2,012,340 - 12.5% debentures were to be issued to the employees' on an equitable basis. Rs 40 of the face value of each debenture was to be converted into 1 equity share of Rs 10 each at a premium of Rs 30 per share on or before 30th September, 1995. Rs 60 of the face value of each debenture was to be converted into 1 equity share of Rs 10 each at a premium not exceeding Rs 50 per share on or before 30th September, 1996.

A joint venture Company along with Economic Development Council of Goa, Daman & Diu Ltd., in the name of Titan Time Products, Ltd., was set up at Goa, for the manufacture of Electronic Circuit Blocks. The company undertook to set up a jewellery business at Hosur. The jewellery repertoire was to include both daily-wear jewellery and luxury products. Grant Walker, a U.K. based firm, was to provide the necessary consultancy services and the marketing was to be undertaken worldwide through an offshore company controlled by Titan Watches Ltd., with its mainbase in London. The Company along with other Tata Associates were to participate in the equity of Timex, who were to offer equity shares of Rs 10 each at a premium of Rs 40 per share. It was also proposed to make a Partly convertible debenture of nearly Rs 60 crores.

1992
Over 150 new models were introduced of which `Raga' introduced in June, `Spectra' a range of watches in steel and gold plated was reintroduced with a new look in August. It was proposed to introduce a host of new products based on new movements. It was also proposed to sell the brand name `Aqura' and the right to make Aqura products to Timex, with a view to move up market With a view to streamling the Company's international operations, it was decided to set up a wholly owned subsidiary "Titan Holdings BV" in Netherlands. Approval was received for investment of share capital of 2 million U.S. $ in that Company. Titan Time Products, Ltd., is a joint sector project set up with the Economic Development Council of Goa, Daman and Diu.

Titan Properties Ltd., was incorporated to undertake land development and housing scheme for the Company's employees at Hosur. The Company issued 134,22,300 Rights equity shares of Rs 10 each for cash at a premium of Rs 40 per share in the proportion 1:2 (all were taken up).

Another 5,69,000 No. of equity shares of Rs 10 each were issued at a premium of Rs 40 per share in proportion 2 shares: 1 debenture held to Part B holders of 12.5%. Convertible debentures issued in 1989. (all were taken up). 6,99,600 No. of equity shares of Rs 10 each were offered at a premium of Rs 40 per share to employees of the Company and those of promoter companies on an equitable basis (only 3,02,600 shares taken up).

1993
The name of the Company was changed with effect from 21st Sept. from Titan Watches, Ltd. to Titan Industries Ltd., in view of the fact that the Company's products consisted of not only watches but also jewellery. 1994 The Company introduced `Tanishq' range of watches made of 18 carat gold and studded with precious stones. A new range of watch `Insignia' manufactured for the European market likely to be introduced in the domestic market. The Company proposed to expand the watch manufacturing to 5 million pieces by adding some balancing equipment and productivity devices in the component manufacturing plants. The Company proposed to establish new facilities for the manufacture of table clocks with a capacity of 1.5 million pieces per annum. New facilities were also

being established for the manufacture of complex integrated metal bracelets with a capacity of 1.2 million bracelets with technical assistance from a reputed manufacturer in Japan. A new Company was established in Singapore to market products in South and South East Asian countries.

1995
The Company proposed to set up a joint venture company with Hour Glass of Singapore to set up watch boutiques in leading Indian cities for the sale of luxury watches and also be responsible for wholesale and after-sales operations.

1996
The Company has introduced new economy range of watches called "Sonata" and Tanistiq's 22 Karat ethnic Jewellery during the year. 23,00,000 Pref. shares issued on private placement basis.

1998
3.5%, 14% and 12% redeemable cumulative preference shares has been fully redeemed. The Company now has 102 exclusive Titan Showrooms and a chain of 83 Timezone outlets in addition to being present in over 5400 dealer outlets in 1300 towns and cities across the country. Mr A C Mukherji and Mr T K Balaji retire by rotation and are eligible for reappointment. During the year, the Tamilnadu Industrial Development Corporation (TIDCO) nominated Mr R Gopalan, their Chairman and Managing Director.

The Research & Development Group has developed a slim movement with date which has been introduced in the market.

2000
Titan Industries has announced the launch of Cyber, a range of digital clocks. ICRA has withdrawn the A1+ rating assigned to the Rs 15 crore CP programme of the company as there is no outstanding against the instrument. Titan Industries has been conferred the award for excellence in electronics for the year 1998 by the ministry of information technology (MIT). Titan has launched a new `Style at Work' collection under its Classique range.

Tanishq, the jewellery division of Titan Industries Ltd, has opened its second showroom in Kerala. Pizza Hut has introduced baarah nahi toh tera, a new deal in which a customer who orders a `speed lunch' gets it in 12 minutes, or gets it free. As part of the offer, Pizza Hut has entered into a tie-up with Titan, through which a Titan Fasttrack watch will be displayed on every table to mark the 12 minute countdown. Titan Industries' jewellery arm Tanishq is getting into an memorandum of understading with Canara Bank and Corporation Bank to convert gold articles into slabs. Titan Industries is considering launching a `third brand' for the upper end. Titan Industries unveiled a new range of wrist-watches, called the Classique range, for Corporate Executives. Titan Industries has announced a new range of Fastrack watches for young women in the city

2001
Titan Industries Ltd. has launched three new collections of its popular Dash brand of watches for kids -- Popeye, Digital and Lumibrite. Titan Industries on June 27 reported its profit rose 21.8 per cent in the past year to March, reflecting strong sales growth by its jewellery division.

2002
Titan Industries Ltd informs that the Board of Directors have appointed Mr. V.K.Jeyakodi, IAS, Executive Director, Tamil Industrial Development

Corporation Ltd as a Director of the Company, in place of Mr. Hemant Kumar Sinha who has resigned. Titan Industries Ltd informs that Mr Bhaskar Bhat is appointed as Managing Director of the Company.Mr Bhaskar Bhat succeeds Mr Xerxes Desai who steps down as Managing Director on March 31, 2002, at the end of his tenure. Titan Industries Ltd, the Board of Directors have appointed Mr M Kalaivanan, appointment in place of Mr V K Jeyakodi who has resigned from the Board on March 27, 2002.The Board of Directors have also appointed Mr Krishnadas Nair as an additional independent Director on the Board of the Company effective May 02, 2002. At the Board meeting of Titan Industries Ltd held today (June 26, 2002), the Board of Directors noted and accepted the resignation of Mr A Gowrishankar as Chairman and Director and Mr M Kalaivanan as a Director, both of them were nominee directors of TamilNadu Industrial Development Corporation Ltd (Tidco) The Directors have also approved the appointment of Dr R Vijaykumar as a Nominee Director of Tidco in place of Mr M Kalaivanan.

Titan Industries Ltd decides that it would be in the long-term interest of the company to rationalise its manpower and to improve productivity. With a view to achieve this objective and keeping the best interests of both employees and the company in mind the company has decided to introduce a Voluntary Retirement Scheme to its permanent employees. The scheme has been notified today July 25, 2002 to the employees of the company. Arun Kumar appointed as Director & Chairman of Titan Industries.

2003
Tanishq steps into a new segment Silverware. The silverware range has been designed by Michael Folly, the designer for Titan. We have introduced silverware in all metros, said YL Saroja, group manager, sales and marketing, Tanishq. This is a Rs 5,000 crore market and has few organised and branded players. Management decided to declare partial lock-out at the company's manufacturing facilities at Hosur. Floats towards automotive and aerospace precision mechatronics for aviation and auto tools. Mr Jacob Kurian, Chief Operating Officer gives his resignation to the company. Soldbusiness of publishing Readers Digest Magazine for a lumpsum consideration of Rs 150 million to Living Media India ltd.

2004
GVM International Ltd., a licensee of Tommy Hilfiger Licensing Inc (a whollyowned subsidiary of Tommy Hilfiger Corporation), and a member of the Murjani Group, enters into an exclusive sub-licensing agreement with Titan Industries Ltd to market and distribute Tommy Hilfiger watches in the country

Relaunches 'Raga', the women's watch range Titan has announced the launch of a new collection of women's watches called 'Raga Miniatures'. Small and delicate in size the watches bracelets in 15 varieties of gold and steel and is priced at Rs 2995 onwards. Titan Industries Ltd announced the launch of the customer service `Original Spares' logo Titan has announced the launch of Raga 9 to 5 collection of watches aimed at working women. The collection comprises around 40 designs and is targeted at women in the age group of 25 to 45. The new range is available at a price ranging from Rs 1650 to Rs 5000. Titan Industries on June 18, 2004, announced the launch of the Tommy Hilfiger watch collection in India. Titan has entered into an exclusive sub-licensing arrangement with GVM International Ltd, a member of the Murjani Group, for the marketing and distribution of Tommy Hilfiger watches in India Watch and jewellery manufacturer Titan Industries forayed into the fashion accesssories industry with the launch of sunglasses, a Rs 330-crore market Rolls out new range of designer eyewear in Chennai Titan Industries on July 22, 2004, launched the Flip collection - a dual-faced watch that incorporates two watch movements embedded in a single case Titan rolls out new range of jewellery watches under the 'Nebula' brand Titan Industries launches Crown Collection watches Titan partners with LVMH Group Titan Industries launches Cal Track

2005
Titan re-introduces Fastrack range of watches Titan introduces new gold & steel collection in Coimbatore Titan rolls out bi-metal range of watches in Vizag Titan launches multiple watches under Raga coordinate range

2006
Titan Industries Ltd has informed that Mr. Harish Bhat is being appointed as Chief Operating Officer (COO) - Watches and Licensing & Accessories Division of the Company. Titan to set up Tanishq exclusive stores in US Titan Industries unveils Xylys watche Titan Ind sets up boutique in Banjara Hill 2008 Titan Industries Ltd has informed that Mr. Sunil Paliwal, IAS, Executive Director, Tamilnadu Industrial Development Corporation Ltd (TIDCO) has been inducted as an Additional Director in the Board of the Company with effect from February 26, 2008. Titan Industries Ltd has informed that the Board of Directors of the Company at its meeting held on October 29, 2008, inter alia, has appointed Mr. Kumar Jayant, IAS, nominee Director, Tamilnadu Industrial Development Corporation Ltd as an Additional Director in the Board of the Company with effect from October 29, 2008.

Mr. Sunil Paliwal, IAS, nominee Director, Tamilnadu Industrial Development Corporation Ltd has resigned as Director of the Company.

2009 :TIL ties up with Sankara Nethralaya 2010: Titan Industries Ltd has appointed Mrs. Anita Praveen, IAS, Chairperson & Managing Director of Tamilnadu Industrial Development Corporation Ltd (TIDCO) as an Additional Director of the Company with effect from June 01, 2010.

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 over 135million watches world over and manufactures 13 million watches every year. With a license for premium fashion watches of global brands, Titan Industries 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 Tanishq, India's most trusted and fastest growing jewellery brand. Gold Plus, the later addition, focuses on the preferences of semi-urban and rural India. Completing the jewellery portfolio is Zoya, the latest retail chain in the luxury segment.

Titan Industries 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 827 retail stores across a carpet area of over 10,08,083 sq. ft. Titan Industries has Indias largest retail network spanning over 155 towns. The companyhas over 340 exclusive World of Titan' showrooms and over 125 Fastrack stores. It also has a large network of over 700 after-sales-service centers. Titan Industries is also the largest jewellery retailer in India with over 130 Tanishq boutiques and Zoya stores, over 31 Gold Plus stores. It also sports over 204 Titan Eye+ stores. The company has two exclusive design studios for watches and jewellery. 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. 3.4BOARD OF DIRECTORS

S.No 1 3 2 5 4

Name N Sundaradevan Bhaskar Bhat A R Rajaram N Sundaradevan Das Narayan Das

Designation Chairman Managing Director Company Secretary Director Director

6 7 8 9 10

K Dhanavel T K Balaji C G Krishnadas Nair Vinita Bali Hema Ravichandar

Director Non Executive Independent Director Non Executive Independent Director Non Executive Independent Director Non Executive Independent Director

11

R Poornalingam

Non Executive Independent Director

12

V Parthasarathy

Non Independent & Non Executive Director Non Independent & Non Executive Director Non Independent & Non Executive Director

13 14

Ishaat Hussain

N N Tata

BRAND PROFILE

TITAN

Titan is one of India's leading watch brands that brought about a paradigm shift in the Indian watch market, offering quartz technology with international styling. The Titan portfolio owns over 60% of the domestic market share in the organiz ed watch market. The brand Titan is committed to offering its consumers watches that represent the compass of their imagination. The brand regularly introduces exciting new collections, which connect with the various facets of deep-rooted human yearnings for selfexpression. The new brand philosophy of Titan, encapsulated in the catchphrase Be More, touches this as well as all other aspects of the brand. The Titan brand architecture comprises several collections and sub-brands, each of which is a leader in own space. Notable among them are: Titan Edge - world's slimmest watch based on the philosophy less is more, Titan Raga - feminine and sensuous accessory for today's woman, Nebula - crafted with solid 18k gold and precious stones. Several other popular collections like Heritage, Aviator, Automatic, Regalia, Obaku also form a part of the Titan portfolio. The watch division boasts of over 300 exclusive showrooms christened World of Titan', placing the brand amongst the largest chains in its category backed by over 650 after-sales-service centres. The division has a world-class design studio that constantly invents new trends in wrist watches. SONATA Sonata, India's largest selling watch brand, offers stylish looks at affordable prices. The thoughtfully crafted designs encompass the aspirations of young India. The boldness and uniqueness of each design reflects the confidence of the wearer The brand offers a variety of looks, to suit every occasion and every wallet: Dressy Sona Sitara watches for special occasions Bold Yuva watches crafted in steel for todays confident youth Contemporary Office Wear watches with formal appearance and leather strap Stylish and Strong Super Fibre watches

FASTRACK Fastrack was launched in 1998 as a sub-brand of Titan. It was spun off as an independent brand of watches targeting the urban youth in 2005. Since then, it has carved a niche for itself with designs that were refreshingly different and affordable. During that time, Fastrack also extended its footprint into eye gear and in the last 4 years has quickly notched up the title of being the largest sunglass brand in the country. Fastrack has now chartered into newer categories bags, belts, wallets and wrist bands as part of its vision to become a complete fashion brand for the youth. With enough categories to fill up one cool store, Fastrack has moved on to open its own stores for its young consumers. The store is positioned as a complete accessories destination with all Fastrack gear under one roof. The first store was opened in Pune in 2010. Fastrack plans to have 100 such stores by 2012.

XYLYS Xylys, is an exclusive brand of Swiss made watches from Titan. The tagline (you dont possess a Xylys, it possesses you), says it succinctly. And if that doesnt convince you, one look at a Xylys timepiece will. Crafted and designed with the legendary Swiss eye for detail and perfection, every Xylys watch is an experience of love at first sight. Priced between Rs. 8500 and Rs. 24000, the Xylys range of watches comes in three collections - Contemporary, Classic and Sport and offers over 100 distinctive models.

INTERNATIONAL BRANDS:

Tommy Hilfiger Watches Titan Industries Limited has made Tommy Hilfiger Watches available in India at most World of Titan stores, leading multi-brand watch outlets, and department stores like Shoppers Stop, Central and Lifestyle.

Hugo Boss Watches Hugo Boss, one of the worlds most popular European brands, has its roots in Germany. Hugo Boss is known for shoes, accessories, and fragrances. Watches complement and complete the portfolio. Hugo Boss watches were launched globally early this year. The Hugo Boss watch designs connote European elegance and couture and are a symbol of power and sophistication. Hugo Boss watches are now available in India, thanks to Titan Industries Limited.

PRODUCTS PROFILE: PRODUCTS: Titan Industries, best known as India's pioneering manufacturer of quartz watches, has also etched a niche for itself in some of the most competitive spaces in the fashion industry such as jewellery and eyewear. Watches:

Being the world's fifth largest integrated watch manufacturer, Titan Industries has created and sold more than a 110 million pieces the world over. With a production rate of over 12 million watches per annum and a customer base of over 100 million, Titan Industries owns manufacturing and assembly operation centers in Hosur in Karnataka, Dehradun, Roorkee and Pant Nagar in Uttaranchal, Baddi in Himachal Pradesh, and an Electronic Circuit Boards (ECB) plant in Goa. Capturing the important market segments and the changing fashion trends, Titan Industries has brought forth four core watch brands: Titan is designed for the mid-premium segment. Fastrack is crafted to fit the trendy fashion space with a focus on the youth. Sonata is created for the mass market and has emerged as Indias largest selling watch brand. Xylys is fashioned for the premium market, aiming at the high-end connoisseur and new-age achiever. The Titan brand architecture comprises several sub-brands, each of which is a market leader in own space. Notable among them are: Titan Edge, Titan Raga, Nebula, Heritage and several other collections like WWF, Zoop, Orion, Purple, Obaku and the Automatic series. The Titan portfolio owns over 60% of the domestic market share in the organized watch market. Titan Industries pride possession, a world-class design studio for watches and accessories, is the place where some of the most coveted creations have been conceptualized. Exclusive World of Titan and Fastrack showrooms and over 12,000 outlets in more than 2,554 cities in India make these much-sought-after watches available to the buyers. The watches are also offered internationally in 30 countries, with a special focus on the Middle East and Asia Pacific regions. The after-sales service, a benchmarked

operation with a large network of exclusive service centers spread across the country, is one of the operation units with the fastest turnaround time in the world.

Jewellery: Following the suit of time products, Titan Industries Tanishq has been Indias largest, fastest growing and most popular jewellery brand. Tanishq offers a premium range of innovatively created gold jewellery with an aesthetic use of diamonds and precious, semi-precious stones in various hues. Arresting designs in 22kt pure gold as well as platinum are among the most admired products on the companys list. GoldPlus the recent retail plain gold jewellery offering, is specifically created for semi urban and rural Indian market. The brand offers gold jewellery, as well as unique designs crafted with diamonds, American diamonds and other precious stones. Titan Industries boasts of 119 Tanishq boutiques, 2 Zoya stores and 29 Gold Plus stores in India. The enchanting jewellery patterns that are part of these brands originate in the well-equipped exclusive jewellery design studio of Titan Industries.

Eye wear: Titan Eye+ of Titan Industries offers sunglasses under its Fastrack brand. Prescription eyewear such as lenses and contact lenses is also part of the range. Titan Eye+ offers frames, sunglasses, and accessories of Titan I ndustries in-house brands as well as other premium brands.

Precision Engineering:

The Precision Engineering division of Titan Industries supplies precision components to the aviation and the automotive industry. As an Original Equipment Manufacturer (OEM), the company makes dashboard clocks for car manufacturers in Europe and America

AREA OF OPERATION: The area of operation of M/S TITAN INDUSTRIES LTD. Is as followsThe manufacturing of the products is limited to national where as in HONGKONG there is another unit of manufacturing the marketing and the selling and distribution is global operated activity. Business Overview In its silver jubilee year, Titan Industries indeed came up with a sterling performance, in spite of a backdrop of a challenging economic scenario. The recovery of the Indian economy in the second half of the year is well reflected by our best ever performance, attributed to initiatives both of revenue growth and cost reduction undertaken by the Company. Income grew by 22% from Rs.3, 848crores last year to Rs. 4,703crores this year while Net Profit grew by 57% from Rs. 158.96crores last year to Rs. 250.32crores this year. The Company was incorporated on 26th July, at Chennai. They manufacture analog electronic watches with a choice of over 150 designs. The Comp. was promoted jointly by Questar Investments Ltd., a Tata Comp. with its associates Tata Sons, Ltd., & Tata Press, Ltd., & Tamil Nadu Industrial Development Corporation, Ltd. [TIDCOs]. The main objective of Comp. is to manufacture analog electronic watches with a choice of over 150 designs. The Comp. undertook to set up a plant for manufacture of quartz analog electronic watches in the State Industries Promotion Corporation of Tamil Nadu, limited Industrial area at Hosur. The Comp. entered into a collaboration agreement with France Ebauches [FEs] of France, manufacturers of watch movements and components, for technical

documentation, assistance in procurement of manufacturing equipments, raw materials, etc

NATURE OF BUSINESS CARRIED: M/S Titan Industries Ltd. is basically a manufacturing industry which is dealt in manufacturing of stylish and the brand watches to satisfy the needs of the public. Working capital requirement is considerably influenced by the nature of business. Example: for trading concerns the working capital requirement is more and requirement of fixed assets will be less. For manufacturing concern requirement of working capital is moderate and for public utility services like Railways, Hotels, Electricity, Transport the requirement of working capital is less. VISION AND MISSION STATEMENTS: Our Vision: To be a world-class, innovative and progressive organisation and to build Indias most desirable brands. Our Mission: To create wealth for all our stakeholders by building highly successful businesses based on a customer-centric approach, and to contribute to the community. Our Values and Standards: Total customer orientation - Customers take precedence over all else, always. Employee appreciation - We value and respect Titanium and Endeavour to fulfill their needs and aspiration. Performance culture and teamwork - At Titan Industries, high performance is but a way of life and is nurtured by teamwork.

ACHIVEMENTS OR AWARDS:

Over the years, Titan Industries has received several prestigious awards and distinctions. Some of the recent and most noteworthy recognitions are: Titan Industries received the Award for the Most Admired Timewear Brand of the Year in 2010 for the ninth successive year for Titan and the Most Admired Jewellery Brand of the Year for the seventh consecutive year for Tanishq. Gold plus bags 2 dragons and 2 certificates of merits at the Promotion marketing awards of Asia 2010. Jewellery Division was declared the winner of the GOLD AWARD" in FMCG sector in the Genentech Environment Excellence Award 2010. Jewellery Division wins first prize in Innovation in Supply Chain Management organized by Indian Institute of Material Management for the second consecutive year and ranked amongst the top five amongst 50 global entries at European Business School, Wiesbaden Germany Titan brand won the Most Valuable Brand in the State award at the IIPM & The Sunday Times STATE EXCELLENCE AWARD. Titan Industries bagged 19th position across all industry categories and 1st position in the Retail Industry category in the Economic Times Great Place to Work Institute study. COMPETITORS INFORMATION: Titan sells around 7 million watches annually, Timex sells under 1.2 million watches, Other Brands (all put together sell less than 0.5 million watches) The Japanese Citizen, Casio, have been present, while Seiko has not made any significant moves in India. The Swiss Rolex, Omega, Rado, Tissot, Tag, Longines, Cartier, Ebel

The fashion brands Esprit, Giordano, Tommy Hilfiger,Calvin Klien, Fossil, Swatch.

The McKinsey 7S Framework


Ensuring that all parts of your organization work in harmony
How do you go about analyzing how well your organization is positioned to achieve its intended objective? This is a question that has been asked for many years, and there are many different answers. Some approaches look at internal factors, others look at external ones, some combine these perspectives, and others look for congruence between various aspects of the organization being studied. Ultimately, the issue comes down to which factors to study.

While some models of organizational effectiveness go in and out of fashion, one that has persisted is the McKinsey 7S framework. It's all very well devising a strategy, but you have to be able to implement it if it's to do any good. The Seven S Framework first appeared in "The Art of Japanese Management" by Richard Pascale and Anthony Athos in 1981. They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of the four authors in 1978. It went on to appear in "In Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy McKinsey : it's sometimes known as the McKinsey 7S model. The Seven-Ss is a framework for analyzing organizations and their effectiveness. It looks at the seven key elements that make the organizations successful, or not: strategy; structure; systems; style; skills; staff; and shared values. The model shows that organizational immune systems and the many interconnected variables involved make change complex, and that an effective change effort must address many of these issues simultaneously.

7-S Model A Systemic Approach to Improving Organizations

The 7-S model is a tool for managerial analysis and action that provides a structure with which to consider a company as a whole, so that the organization's problems may be diagnosed and a strategy may be developed and implemented. The 7-S diagram illustrates the multiplicity interconnectedness of elements that define an organization's ability to change. The theory helped to change manager's thinking about how companies could be improved. It says that it is not just a matter of devising a new strategy and following it through. Nor is it a matter of setting up new systems and letting them generate improvements. To be effective, your organization must have a high degree of fit, or internal alignment among all the seven Ss. Each S must be consistent with and reinforce the other Ss. All Ss are interrelated, so a change in one has a ripple effect on all the others. It is impossible to make progress on one without making progress on all. Thus, to improve your organization, you have to master systems thinking and pay attention to all of the seven elements at the same time. There is no starting point or implied hierarchy - different factors may drive the business in any one organization.

The 7S McKinsey model

Hard Ss Strategy Structure Systems

Soft Ss Shared Values Skills Style Staff

The 3Ss across the top of the model are described as 'Hard Ss':-

Structure
Structure is the organizational chart and associated information that shows who reports to whom and how tasks are both divided up and integrated. In other words, structures

describe the hierarchy of authority and accountability in an organization, the way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc. These relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures - pyramidal, matrix or networked ones - to accomplish their goals.

Strategy
Strategies are plans an organization formulates to reach identified goals, and a set of decisions and actions aimed at gaining a sustainable advantage over the competition. It is the direction and scope of the company over the long term.It is the plan devised to maintain and build competitive advantage over the competitors.

Systems
Systems define the flow of activities involved in the daily operation of business, including its core processes and its support systems. They refer to the procedures, processes and routines that are used to manage the organization and characterize how important work is to be done. Systems in Business System: Business Process Management System (BPMS) Management information system Innovation system Performance management system Financial system/capital allocation system Compensation system/reward system Customer satisfaction monitoring system etc.

The 4Ss across the bottom of the model are less tangible, more cultural in

nature, and were termed 'Soft Ss' by McKinsey. These are :-

Shared Values The interconnecting center of McKinsey's model is: Shared Values
Shared values are commonly held beliefs, mindsets, and assumptions that shape how an organization behaves its corporate culture. Shared values are what engender trust. Values are the identity by which a company is known throughout its business areas, what the organization stands for and what it believes in, it central beliefs and attitudes. These values must be explicitly stated as both corporate objectives and individual values. When the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.

Style
"Style" refers to the cultural style of the organization, how key managers behave in achieving the organization's goals, how managers collectively spend their time and attention, and how they use symbolic behavior.How management acts is more important than what management says. Style represents the leadership approach of top management and the company's overall operating approach.

Staff
"Staff" refers to the number and types of personnel within the organization and how companies develop employees and shape basic values. It is the company's people resources and how they are developed, trained, and motivated.

Skills
"Skills" refer to the dominant distinctive capabilities and competencies of the personnel or of the organization as a whole.

"Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems. "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful. The way the model is presented in Figure above depicts the interdependency of the elements and indicates how a change in one affects all the others. For example, a change in HR-systems like internal career plans and management training will have an impact on organizational culture (management style) and thus will affect structures, processes, and finally characteristic competences of the organization. In change processes, many organizations focus their efforts on the hard Ss:- Strategy, Structure and Systems. They care less for the soft Ss, Skills, Staff, Style and Shared Values. Peters and Waterman in In Search of Excellence commented however, that most successful companies work hard at these soft Ss. The soft factors can make or break a successful change process, since new structures and strategies are difficult to build upon inappropriate cultures and values. These problems often come up in the dissatisfying results of spectacular mega-mergers. The lack of success and synergies in such mergers is often based in a clash of completely different cultures, values, and styles, which make it difficult to establish effective common systems and structures.

SWOT ANALYSIS: Appraising a companys resource strengths and weaknesses and its external opportunities and threats, commonly known as SWOT analysis, it provides a good overview of whether its overall situation is fundamentally healthy of unhealthy. SWOT analysis provides the basis for crafting a strategy that capitalizes in the companys

resources aims squarely at capturing the companys best opportunities and defends against the threats to its well being.

Strengths The varied offerings to diverse segments with a clear cut positioning.

b) The quality of watches is impressive.

c) Innovation is core to its strategy. d) Visual Merchandizing has been Titans strength ever since its inception. e) Good retail network by WORLD OF TITAN

f) Excellent customer service.

g) International tie-ups with Hugo Boss and Tommy Hilfiger.

Weaknesses

a) Waterproof watches not a part of its kitty. b) Rural India does not form a substantial part of customer base. c) Kids are fascinated with mobile phones rather than watches and incidentally, they show the time.

Opportunities a) Under-penetrated market for watches as only 35% (approximately) of Indian population possesses watches. b) Watches positioned as a fashion wear rather than just utility products. c) With a changing consumer attitude, people like to possess multiple watches for different occasions and events. d) Huge market in the exchange business. e) Introducing waterproof watches. f) Rural market may be tapped. Threats From competitors Japanese- Citizen, Casio

2. Swiss- Rolex, Omega, Rado, Tissot, Tag Heur, etc.

Chinese watches

Mobile phones and wall clocks are a substitute to watches.

PART -B

GENERAL INTRODUCTION
Finance is the life-blood of business. It is rightly termed as the science of money. Finance is very essential for the smooth running of the business. Finance controls the policies, activities and decision of every business. FINANCIAL PERFORMANCE ANALYSIS

The word Performance is derived from the word parfourmen, which means to do, to carry out or to render. It refers the act of performing; execution, accomplishment, fulfilment, etc. In border sense, performance refers to the accomplishment of a given task measured against preset standards of accuracy, completeness, cost, and speed. In other words, it refers to the degree to which an achievement is being or has been accomplished. In the words of Frich Kohlar The performance is a general term applied to a part or to all the conducts of activities of an organization over a period of time often with reference to past or projected cost efficiency, management responsibility or accountability or the like. Thus, not just the presentation, but the quality of results achieved refers to the performance. Performance is used to indicate firms success, conditions, and compliance. Financial performance refers to the act of performing financial activity. In broader sense, financial performance refers to the degree to which financial objectives being or has been accomplished. It is the process of measuring the results of a firm's policies and operations in monetary terms. It is used to measure firm's overall financial health over a given period of time and can also be used to compare similar firms across the same industry or to compare industries or sectors in aggregation. This studying contain following analysis: comparative analysis statement common-size analysis statement Ratio analysis Trend analysis. Comparative financial statement: Comparative financial statement is those statements which have been designed in a way so as to provide time perspective to the consideration of various elements of financial

position embodied in such statements. In these statements, figures for two or more periods are placed side by side to facilitate comparison. But the income statement and balance sheet can be prepared in the form of comparative financial statement. Comparative balance sheet: Comparative balance sheet as on two or more different dates can be used for comparing assets and liabilities and finding out any increase or decrease in those items. Thus, while in a single balance sheet the emphasis is on present position, it is on change in the comparative balance sheet. Such a balance sheet is very useful in studying the trends in an enterprise. Common-Size Financial Statement: Common-size financial statement are those in which figures reported are converted into percentages to some common base in the income statement the sales figure is assumed to be 100 and all figures are expressed as a percentage of sales. Similarly, in the balance sheet, the total of assets or liabilities is taken as 100 and all the figures are expressed as a percentage of this total. Ratio analysis: Ratio analysis is a widely used tool of financial analysis. The term ratio in it refers to the relationship expressed in mathematical terms between two individual figures or group of figures connected with each other in some logical manner and are selected from financial statements of the concern. The ratio analysis is based on the fact that a single accounting figure by it self may not communicate any meaningful information but when expressed as a relative to some other figure, it may definitely provide some significant information the relationship between two or more accounting figure/groups is called a financial ratio helps to express the relationship between two accounting figures in such a way that users can draw conclusions about the performance, strengths and weakness of a firm. Classification of ratios:

A) Liquidity ratios B) Leverage ratios C) Activity ratios D) Profitability ratios


STATEMENT OF THE PROBLEM In this study the research problem is know the company financial position. The ultimate

performance indicator of any company is the financial parameters because invariably all costs efficiencies; activities and solvency position of the company will be reflected in the financial mirror.

OBJECTIVES OF THE STUDY The basic objective of studying the ratios of the company is to know the financial position of the company. To know the borrowings of the company as well as the liquidity position of the company. To study the current assets and current liabilities so as to know the shareholders could invest in Titan Industries or not. To study the profits of the business and net sales of the business and to know the stock reserve for sales of the business. To know the solvency of the business and the capacity to give interest to the long term loan lenders and dividend to the share holders. To study the balance of cash and credit in the organization. NEED OF THE STUDY

Any company would like to know its position against its competitors. The ultimate performance indicator of any company is the financial parameters because invariably all costs efficiencies; activities and solvency position of the company will be reflected in the financial mirror. The following are stated as the need for the study: To understand the volume of the profit and its reasonableness. To understand the movement of profit over a period of time. To know the reason for the variation in the profit. To know the present standing of the company. REVIEW OF LITERATURE For the purpose of this project information collected is from the primer data, which was obtained from the field to make the research work more meaningful. The other information please, collected from different sources, which are as follows: Annual theoretical books are Various theoretical books are: Financial management Financial management Financial Management Kalyani Publishing House Financial management (3rd edition) Financial management (7th edition) Financial accounting (4th edition) SCOPE OF THE STUDY by. Jain&Khan by. IM.pandey by. B.S Raman by. S.K.R. Paul by. S.N. Maheshwari by. R.K. Sharma & Gupta

The study is conducted mainly to review the financial strength of the company for a period of 5 years from 2006-2008 to 2011-2012 as revealed from the financial data of the Companys annual reports. This study aims at analyzing three heading of the performance of the that is Ratio analysis. Trend analysis Comparative statement. Common size statement.

The study is confined to the TITAN INDUSTRIES LIMITED it will be useful for future research. Research design: Research design means a search of facts, answers to question and solution to the problems. It is a prospective investigation. Research is a systematic logical study of an issue or problem through scientific method. It is a systematic and objective analysis and recording of controlled observation that may lead to the development of generalization, principles, resulting in prediction and possibly ultimate control of events. Research design is the arrangement of conditions for the collection and analysis of data in manner that aims to combine relevance to the research purpose with relevance to economy. There are various designs, which are descriptive and helpful for analytical research. In brief a research design contains A clear statement of the research problem. A specification of data required. Procedure and techniques to be adopted for data collection. A method of processing and analysis of data.

The descriptive form of research method is adopted for study. The major purpose of descriptive research is description of state of affairs of the institution as it exits at present. The nature and characteristics of the financial statements of titan industries Ltd have been described in this study. Period of study: The period of 17th February 2012 to 18th March 2012. Nature of data: The data required for the study has been collected from secondary source .The relevant information were taken from annual reports, journals and internet. Methods of data collection: This study is based on the annual report of Titan Industries Ltd. Hence the information related to, profitability, short term and long term solvency and turnover were very much required for attaining the objectives of the present study. Tools applied: To have a meaningful analysis and interpretation of various data collected, the following tools were made for this study. Ratio analysis Common-size statement Comparative statement Trend anal LIMITATIONS OF THE STUDY The analysis was taken from the annual reports. Therefore, is only a limited to find.

Major part of the concerned with the financial data adequate data was not able to pool because of the secrecy maintained by the company.

The study reveals the findings for the present and its will not reflect the past and the future. Every tools used in data analysis has certain limitations. The study is limited one month only. 2.12 CHAPTER SCHEMES The overview of the report proceeds as below: Chapter - 1: Introduction to the study: This chapter gives us a general introduction to the study undertaken. It talks about the problem for which the project has been taken; the definitions of the study; need, objective and the scope of the study conducted. Chapter 2: Research design of the study: This chapter briefly describes the way in which the study is carried out. It provides information regarding the specific research design followed for the study, sources of data, data processing and analysis plan of the study, expected contribution of the study and the limitations of the study. Chapter 3: Profile of the organization: This chapter views the origin, growth and the present status of the organization, i.e, TITAN INDUSTRIES LIMITED. It also covers the functional departments, its organizations structure, its objectives and its future prospects. Chapter 4: Data analysis and interpretation: In this chapter all calculations pertaining to the study are calculated and interpreted. Calculations refer to the ratios calculated in the study. The trends of the ratios are also projected and interpreted. As it is said that one picture is worth 1000 words, graphs have

also been provided foe better understanding

DATA ANALYSIS AND INTERPRETATION PERCENTAGE ANALYSIS: Profitability analysis: Gross profit ratio: It is the relationship gross profit and sales. This ratio can be obtained by dedication cost of goods sold from sale, it expressed in percentage. Formula: Gross profit Gross profit ratio = ------------------------------------------ 100 Net sales
TABLE 4 .1

Year 2008 2009 2010 2011 2012

Gross profit 15566 20230 23056 32132 59900

Sales 213646 304109 384771 470312 657086

Gross profit ratio 7.2 6.6 6.0 6.8 9.1

CHART 4.1 Gross profit ratio:

Interpretation: The gross profit ratio was high in the year (2008and 2009) which is about (7.2 and 6.6) respectively. Then it was considerably less because of the increasing cost (or) decreasing in sale. In the 2010 it again shown same decrease of (6.0) then on the year 2011 it was (6.8)at the end of 2012 there is slight growth of (9.1) this indicate there is an increase in sales (or) these a decrease in cost to improve the gross profit the company should decrease its cost and increase its sales.

Net profit ratio:


It is the relationship between net profit after tax and net sales. It is calculation after excluding non-operating expenses. It is used to measure the efficiency and overall profitability of the organization. Formula: Net profit after tax Net profit ratio = ------------------------------------------ 100 Net sales TABLE -4.2
Year 2008 2009 2010 2011 2012 Net profit 9413 15027 15896 25032 43042 Sales 213646 304109 384771 470312 657086 Net profit ratio 4.4 4.9 4.1 5.3 6.5

CHART 4.2 Net profit ratio

Interpretation: The net profit for the year 2008 was (4.4) which shows that there is better management efficiency. But in the next year it as increase to (4.9) shows there was a good efficiency in management. But from that point the organization followed a steep down in the net profit. In the year 2010 is down to (4.1)and in 2011 it was at (5.3)in the year 2012 net profit of the company was increase of (6.5)which clearly indicates the operating efficiency of the concern the highest the net profit the good is the operating efficiency of the business concern.

Operating profit ratio: It is the relationship between ebit (earning before interest and tax) and net sales. It is used to measure efficiency and overall profitability of the organization.

Formula: EBIT Operating profit ratio = ------------------------------------------ 100 Net sales

TABLE -4.3 Year EBIT Sales Operating profit ratio 2008 15566 213646 7.2

2009 2010 2011 2012

20230 23056 32132 59900

304109 384771 470312 657086

6.6 6.0 6.8 9.1

CHART 4.3 Operating profit ratio:

Interpretation: In 2008, the firm shows a high operating profit ratio of (7.2) and the company has increased this. Because of low turnover of the company in the remaining one year there is down in the profit in the year 2010(i.e.)(6.0) and there is slight increase in the operating profit in the year 2011(6.8)and2012 (9.1)is sight increase this shows that there is an increase in sales which lead to a high turnover

Current ratio: Current ratio expresses the relationship of current assets to current liabilities. Formula: Current assets

Current ratio = -----------------------------------------Current liabilities TABLE -4.4 Year Current assets 2008 2009 2010 2011 2012 116946 136360 162066 320240 82027 Current liabilities 53686 80190 94113 114959 241927 Current ratio 1.5 1.4 1.4 1.4 1.3

CHART 4.4 Current ratio:

Interpretation:

The firms current ratio of (1.5) in the year 2008 better when compare t o the other years. It implies that for every one rupee of current liabilities current assets of (1.5) is available to meet them. The current ratio of the remaining years is nearest to the idle ratio. Although there is a hard and fast rule conventionally, a current ratio 2:1 considered satisfactory. Quick ratio: Quick ratio expresses the relationship of current assets and inventories to current liabilities.

Formula: Current assets-inventories Quick ratio = -----------------------------------------------Current liabilities TABLE -4.5


Year 2008 2009 2010 2011 2012 Quick assets 14279 14837 16091 28033 120857 Current liabilities 53686 80190 94113 114959 241927 Quick ratio 0.2 0.1 0.2 0.2 0.5

CHART 4.5 Quick ratio:

Interpretation: As a rule of thumb or as a convention quick ratio of 1:1 considered satisfactory. Then the concern may able to meet its short-team obligations. Here in the year 2008 the quick ratio was (0.2) then it gradually decrease. By the year, 2011 it increased to (0.2) and in the year 2012further increased to (0.5) this is shows, the company maintained an idle quick ratio of 1:1. Investment to total assets ratio: This ratio indicates the relationship between the investments and total assets it is calculated to study the liquidity position of the company. This ratio is calculated by, Formula Investment Investment to total assets = ---------------------------------- 100 Total assets TABLE -4.6 Year Investment Total assets Investmen t to total asset ratio 2008 2009 2010 2011 2012 2702 4739 767 763 913 59189 71837 74483 80193 109460 4.6 6.6 1.0 0.9 0.8

CHART 4.6 Investment to total assets ratio:

Interpretation: The company has invested more in the year 2008 of rupees (4.6). The investment shows that it spent on the purchase of the assets for the company. In the year 2008 it was at (4.6)and in the year 2009,2010,2011,2012 it was (6.6, 1.0, 0.9, and 0.8) respectively.

Current assets turnover ratio: It shows the relationship between sales and current assets. Formula: Sales Current assets turnover ratio = ---------------------------------- 100 Current assets TABLE -4.7
Year Sales Current assets Current assets turnover ratio

ratio 2008 2009 2010 2011 213646 304109 384771 470312 82027 116946 136360 162066 2.6 2.6 2.8 2.9

2012

657086

320240

2.0

CHART 4.7 Current assets turnover ratio:

Interpretation: The current assets ratio for the year 2008 was at (2.6) and for the year, 2009 is at (2.6) there is an equal current ratio and every year. In the year 2010 it is increase to (2.8) and in 2011 it further increase to (2.9). The good the current assets

turnover increase the profit of the company. Therefore, the company experience greater profitability in the year 2012 at (2.0).

Fixed assets turnover ratio: This ratio highlights the amount of assets used by the firm to produce its sales. Higher sales with lower assets show efficiency of the firm. Formula: Sales Fixed assets turnover ratio = -------------------------------Fixed assets TABLE-4.8
Year Sales Fixed assets Fixed assets turnover ratio ratio 2008 2009 2010 2011 2012 213646 304109 384771 470312 657086 26712 28245 29400 27492 30243 8.0 10.8 13.0 17.1 21.7

CHART 4.8 Fixed assets turnover ratio:

Interpretation: The fixed assets turnover ratio determines the efficiency of utilization of fixed assets and the profitability of a business concern. In the year2008 the ratio is at (8.0) which indicates the assets where underutilized in the year 2009 it was at (10.8) which indicates there is a slight improvement in utilization of the assets in the year 2010, 2011 and 2012 it was gradually increased from (13.0, 17.1, 21.7) which clearly indicates that year by year the utilization of the assets where increased. Therefore, the profitability of the business concern is also increased.

Total assets turnover ratio

This shows the ability in generating sales from all financial resources committed to total assets. Formula: Sales Total assets turnover ratio = ------------------------------Total assets TABLE -4.9
Year Sales Total assets Total assets turnover ratio 2008 2009 2010 213646 304109 384771 59189 71837 74483 3.6 4.2 5.1

2011 2012

470312 657086

80193 109460

5.9 6.0

CHART 4.9

Total assets turnover ratio:

Interpretation: during the year 2008 the total assets turnover was at (3.6) in the year 2009 it was at (4.2) and the in the year 2010 it slight increase to (5.1). This shows operational efficiency of the concern. The coming years 2011 and 2012 total assets turnover was at (5.9 and 6.0) Respectively. This shows there that the total assets of the company as contributed towards the total sales, of the company, which as lead to the profitability of the company.

Inventory or stock turnover ratio: It is also called as stock velocity ratio. It is calculated to ascertain the efficiency of inventory management in items of capital investment. It shows the relationship between the cost goods sold and the amount of average inventory. Formula: Cost of goods sold Stock turnover ratio = --------------------------------------------------Average inventory gross profit Cost of goods sold = Sales Gross profit Opening stock + Closing stock Average inventory = ---------------------------------------------------2 TABLE-4.10

Year

Cost of goods sold 198080 283879 361716 438180 597186

Average inventory 33874 51055 60135 67017 99691

2008 2009 2010 2011 2012

Stock turnover ratio 5.8 5.7 6.0 6.5 6.0

CHART 4.10 Inventory or stock turnover ratio:

Interpretation: This is calculated to ascertain the efficiency of the capital management of the concern. The high inventory ratios indicate the investment in inventory is optimum. In the year 2008, the ratio was at (5.8) times and in the year 2009 it was at (5.7) which indicate there is greater efficiency of inventory management and efficiency of the business concern.

Working capital turnover ratio: This represent the number of the working capital is turnover in a year. High ratio represents efficiency utilization of working capital. Formula: Sales Working capital turnover ratio = ------------------------------Working capital TABLE-4.11
Year Sales Working capital Working capital turnover ratio 2008 2009 2010 2011 2012 213646 304109 384771 470312 657086 164206 232824 301581 371163 497495 1.3 1.3 1.2 1.2 1.3

CHART 4.11 Working capital turnover ratio:

Interpretation: This ratio measures the efficiency utilization of the working capital. During the year 2008, ratio was at (1.3) and in the next year, 2009 it was at (1.3). During the year 2010 and 2011,it decrease to (1.2 and 1.2). But in the year 2012 the working capital ratio was highest of (1.3) respectively. Which indicates the effectives utilizations of the working capital? The higher ratio indicates that there is lower investment of working capital and more profit.

Debtors turnover ratio: It is also call as receivable turnover ratio; it shows how quickly receivables or debtors are covered in each year. Formula:

Net credit sales Debtors turnover ratio = ------------------------------Average debtors

TABLE -4.12
Year Sales Average debtors 2008 2009 2010 213646 304109 384771 4603 4823 5311 Debtors turnover ratio 46.4 63.0 72.4

2011 2012

470312 657086

4680 5684

100.4 115.6

CHART 4.12 Debtors turnover ratio:

Interpretation: The ratio indicates measures the liquidity of the receivable during the year of 2008 the ratio was at (46.4) times in the year 2009 it increased to (63.0).from that year the

ratio increased in the preceding year that 2010, 2011 and 2012 was at (72.4,100.4 and 115.6) respectively. The highest the turnover ratio and shorter the average collection of period better is the liquidity of the debtors.

Table- 4.13 Comparative balance sheet (2006-07 & 2008-08) in crs

Particulars Sources of funds: Share capital Reserve & surplus Deferred liabilities Loan funds Total Sources of funds Application of funds: Net fixed assets Investments Inventories Sundry debtors Cash at bank loans and advance Total current assets Less: Current liabilities & provisions Net Current assets Deferred revenue expenditure Total Application of fund

20062008 44.39 283.06 17.44 247.01 591.9

20082009

INC / DEC

44.39 0 391.78 108.72 24.71 7.27 257.89 10.88 126.87 718.77

0 38.41 41.69 4.4 21.43

267.12 282.45 15.33 27.02 47.39 20.37 677.48 1021.09 343.61 92.06 96.45 4.39 50.73 51.91 1.18 65.54 99.17 33.63 885.81 1268.62 382.81 287.44 592.26 879.7 293.55 388.92 95.37 4.21 591.9 0 -4.21 718.76 126.86

5.74 75.39 50.72 4.77 2.33 51.31 43.22 48.53 32.49 -100 21.43

TABLE-4.13.1 Comparative balance sheet (2008-08 & 2009-09) in crs Particulars 20082009 20092010 INC / DEC %

Sources of funds: Share capital Reserve & surplus Deferred liabilities Loan funds Total Sources off funds Application of funds: Net fixed assets Investments Inventories Sundrydebtors Cash at bank loans and advance Total current assets Less: Current liabilities & provisions Net Current assets Deferred revenue expenditure Total Application of fund

44.39 44.39 0 0 391.78 506.85 115.1 29.37 24.71 18.18 -6.53 -26.4 257.89 175.41 -32 82.48 718.77 744.83 26.06 3.63 282.45 47.39 1021.1 96.45 51.91 99.17 1268.6 879.7 388.92 0 718.76 294 11.55 7.66 39.73 1202.7 181.6 106.22 9.77 54.69 2.78 114.13 14.96 1477.7 209.1 1034.6 154.9 443.16 54.24 0 0 744.82 26.06 4.09 -83.8 17.78 10.13 5.36 15.09 16.48 17.6 13.95 0 3.63

Inference:

The comparative balance sheet of the year 2009-2010 is as follows the share capital of the company remains same. The secured loan of the company has decreased in this year by 31.98% .The investment of the company has decreased by 83.84%. The cash position of the company has fluctuating increase or decreases. The current liability and provisions of the company is also increasing

TABLE-4.13.2 Comparative balance sheet (2009-09 & 2010-10) in crs Particulars Sources of funds: Share capital Reserve& surplus Deferred liabilities Loan funds Total Sources of funds Application of funds: Net fixed assets Investments Inventories Sundry debtors Cash at bank loansand advance Total current assets Less: Current liabilities & provisions Net Current assets Deferred revenue expenditure Total Application of fund 20092010 20102011 INC / DEC %

44.39 44.39 0 0 506.85 679.99 173.14 34.16 18.18 4.75 -13.43 -73.9 175.41 72.79 -102.6 -58.5 744.83 801.92 57.09 7.66 294 7.66 1202.6 106.22 54.69 114.13 1477.7 1034.6 443.16 0 744.82 274.92 7.63 1340.3 93.61 186.72 183.06 1803.7 1284.3 519.39 0 801.94 -19.08 -0.03 137.64 -12.61 132.03 68.93 325.99 249.76 76.23 0 57.12 -6.49 -0.39 11.44 -11.9 241.4 60.4 22.06 24.14 17.2 7.67

Inference: The comparative balance sheet of the year 2010 to 2011 is as follows: The share capital of the company remains same. The secured loan of the company has decreased in this year .The fixed

assets of the company has decreased. The cash position of the company has increase by 241.42%. Large amount to the debtors has been paid off during the year.

TABLE-4.13.3 Comparative balance sheet (2010-10 & 2011-11) in crs Particulars Sources of funds: Share capital Reserve & surplus Deferred liabilities Loan funds Total Sources of funds Application of funds: Net fixed assets Investments Inventories Sundry debtors Cash at bank loans and advance Total current assets Less: Current liabilities & provisions Net Current assets Deferred revenue expenditure Total Application of fund 20102011 20112012 INC / % DEC

44.39 44.39 0 0 679.9 980.99 301 44.27 4.75 1.52 -3.23 -68 72.79 67.7 -5.09 -6.99 801.9 1094.6 292.68 36.5 274.9 7.63 1340.3 93.61 186.7 183 1803 1284.3 302.42 27.5 10 9.13 1.5 19.66 1993.8 653.5 48.76 113.68 20.07 21.44 1094.8 908.17 486.4 220 36.94 20.18 3422.4 1618.6 89.74 2639.4 1355 105.5

519.3 783.05 263.66 50.76 0 0 0 0 801.94 1094.6 292.66 36.49

Inference:

The comparative balance sheet of the year 2011-2012 is as follows: The share capital of the company remains same. The secured loan of the company has decreased in this year. The fixed assets of the company have increased. The cash position of the company has increased by 486.3%. The current liability and provisions of the company is also increased by 105.50%.

TABLE-4.14 Common size balance sheet (2006-07 & 2008-08) Particulars Sources of funds: Share capital Reserve & surplus Deferred liabilities Loan funds Total Sources of funds Application of funds: Net fixed assets Investments Inventories Sundry debtors Cash at bank loans and advance Total current assets Less: Current liabilities & provisions Net Current assets Deferred revenue expenditure Total Application of fund 20062008 % 20082009 %

44.39 7.5 44.39 6.18 283.1 47.82 391.78 54.51 17.44 2.95 24.71 3.44 247 41.73 257.89 35.88 591.9 100 718.77 100

267.1 27.02 677.5 92.06 50.73 65.54 885.8 592.3

45.13 282.45 39.3 4.56 47.39 6.59 114.5 1021.1 142.1 15.55 96.45 13.42 8.57 51.91 7.22 11.07 99.17 13.8 149.7 1268.6 176.5 100.1 879.7 122.4

293.6 49.59 388.92 54.11 4.21 0.71 0 0 591.9 100 718.76 100

Inference: The common size balance sheet for the year 2008-2009 is as follows: Share capital of the company is decreasing in percentage of the net worth. In 2006-2008 in 7.50% to 6.18%.Secured loan for the company has decreasing trend. It decreases 41.73% to 35.88% of the net worth of the company. Fixed asset of the company is decreasing in this year from 45.13% to 39.30%. Current liability and provisions is increasing 100.06% to 122.39%.

TABLE -4.14.1 Common size balance sheet (2008-08 & 2009-09) Particulars Sources of funds: Share capital Reserve & surplus Deferred liabilities Loan funds Total Sources of funds Application of funds: Net fixed assets Investments Inventories Sundry debtors Cash at bank loans and advance Total current assets Less: Current liabilities & provisions Net Current assets Deferred revenue expenditure Total Application of fund 282.45 47.39 1021.1 96.45 51.91 99.17 1268.6 879.7 39.3 6.59 142.1 13.42 7.22 13.8 176.5 122.4 294 7.66 1202.7 106.22 54.69 114.13 1477.7 1034.6 39.47 1.03 161.5 14.26 7.34 15.32 198.4 138.9 44.39 391.78 24.71 257.89 718.77 6.18 54.51 3.44 35.88 100 44.39 506.85 18.18 175.41 744.83 5.96 68.05 2.44 23.55 100 20082009 % 20092010 %

388.92 0 718.76

54.11 0 100

443.16 0 744.82

59.5 0 100

TABLE -4.14.2 Common size balance sheet (2009-09 & 2010-10) Particulars Sources of funds: Share capital Reserve & surplus Deferred liabilities Loan funds Total Sources of funds Application of funds: Net fixed assets Investments Inventories Sundry debtors Cash at bank loans and advance Total current assets Less: Current liabilities provisions Net Current assets Deferred revenue expenditure Total Application of fund & 44.39 506.85 18.18 175.41 744.83 294 7.66 1202.7 106.22 54.69 114.13 1477.7 1034.6 443.16 0 744.82 5.96 68.05 2.44 23.55 100 39.47 1.03 161.5 14.26 7.34 15.32 198.4 138.9 59.5 0 100 44.39 679.99 4.75 72.79 801.92 274.92 7.63 1340.3 93.61 186.72 183.06 1803.7 1284.3 519.39 0 801.94 5.54 84.8 0.59 9.08 100 34.28 0.95 167.1 11.67 23.28 22.83 224.9 160.2 64.77 0 100 20092010 % 20102011 %

Inference: The common size balance sheet for the year 2010 to 2011 is as follows: Share capital of the company has decreased from 5.96% to 5.54%. Secured loan for the company has decreasing

trend. It decreases 23.55% to 9.08%. Fixed asset of the company is decreasing in this year of 39.47% to 34.28%. Current liability and a provision is increasing 138.90% to 160.15%.

TABLE-4.14.3 Common size balance sheet (2010-10 & 2011-11) Particulars Sources of funds: Share capital Reserve & surplus Deferred liabilities Loan funds Total Sources of funds Application of funds: Net fixed assets Investments Inventories Sundry debtors Cash at bank loans and advance Total current assets Less: Current liabilities provisions Net Current assets Deferred revenue expenditure Total Application of fund 20102011 44.39 679.99 4.75 72.79 801.92 274.92 7.63 1340.3 93.61 186.72 183.06 1803.7 1284.3 519.39 0 801.94 % 20112012 44.39 980.99 1.52 67.7 1094.6 302.42 9.13 1993.8 113.68 1094.9 220 3422.4 2639.4 783.05 0 1094.6 %

5.54 84.8 0.59 9.08 100 34.28 0.95 167.1 11.67 23.28 22.83 224.9 160.2 64.77 0 100

4.06 89.62 0.14 6.18 100 27.63 0.83 182.2 10.39 100 20.1 312.7 241.1 71.54 0 100

&

Inference: The common size balance sheet for the year 2011 to 2012 is as follows: Share capital figure remained constant however their percentage of net worth has increased. Secured loan for the company has decreasing trend. It decreases 9.08% to 6.18%. Fixed asset of the company is

decreasing in this year of 34.28% to 27.63%. Current liability and a provision is increasing 160.15% to 241.12%.

TABLE-4.15 Trend Income Statement in the study period (2006-07 to 2011-11 Particular 2006 2008 Sales Other incomes Total income Total expenditure Net profit
94.1 100 150.3 62.6 159.0 94.5 250.3 63.5 430.4 58.2 2045.6 100 2892.6 70.7 3694.0 78.3 4464.7 82.7 6196.5 72.1 2139.7 100 3042.9 70.3 3853.0 79.0 4715.0 81.7 6626.9 71.1 2136.5 100 3.2 100

trend 2008 2009

trend 2009 2010

trend 2010 2011

Trend 2011 2012

Trend

3041.1 70.3 1.8 181.9

3847.7 79.0 5.3 33.7

4703.1 81.8 11.9 44.4

6570.9 71.6 56.1 21.1

CHART 4.13

CHART 4.13.1

CHART 4.13.2

Inference: By taking 2006-07 as base year (100%) the sales, total income, total expenditure, and net profit during the study period were analysis by taking trend as a tool. The above table shows the movement of variables during the study period. The entire variable shows the lower trend during the 2011-11. Table 4.16 TREND BALANCE SHEET IN THE STUDY PERIOD (2006-07 to 2011-11)
Particulars 20062008 Share capital Reserve 44.4 100.0 100.0 Trend 20082009 44.4 391.8 100.0 72.2 Trend 20092010 44.4 506.9 100.0 77.3 Trend 201020010 44.4 680.0 100.0 74.5 Trend 20112012 44.4 981.0 100.0 69.3 Trend

& 283.1

surplus Deferred liabilities Loan funds Net assets Investments Inventories Sundry debtors Cash at bank loans advance Current liabilities & provisions 592.3 100.0 879.7 67.3 1034.6 85.0 1284.3 80.6 2639.4 48.7 50.7 100.0 100.0 51.9 99.2 97.7 66.1 54.7 114.1 94.9 86.9 186.7 183.1 29.3 62.3 1094.9 220.0 17.1 83.2 27.0 677.5 92.1 100.0 100.0 100.0 47.4 1021.1 96.5 57.0 66.3 95.4 7.7 1202.7 106.2 618.7 84.9 90.8 7.6 1340.3 93.6 100.4 89.7 113.5 9.1 1993.8 113.7 83.6 67.2 82.3 247.0 100.0 100.0 257.9 282.5 95.8 94.6 175.4 294.0 147.0 96.1 72.8 274.9 241.0 106.9 67.7 302.4 107.5 90.9 17.4 100.0 24.7 70.6 18.2 135.9 4.8 382.7 1.5 312.5

fixed 267.1

and 65.5

Inference: Trend Percentages of Balance Sheet is done by taking 100 as base for all financial years 2008 to 2012. Fixed assets have been decreased during the period 2011-11.current assets, Current liabilities and provisions were fluctuating during the study period. Therefore the balance sheet total shows an increasing trend in the figures.

FINDINGS Gross profit ratio 2006-2008 the basic value is 7.2 and 2011-2012 is increased to 9.1 Net profit ratio 2006-2008the basic value is 4.4 and 2011-2012 is increased to 6.5. Operating profit 2006-2008the basic value is 7.2 and 2011-2012 is increased to 9.1. Current ratio 2006-2008the basic value is 1.5 and 2011-2012 is decreased to 1.3. Quick ratio 2006-2008 the basic value is 0.2 and 2011-2012 is increased to 0.5. Current assets turnover ratio 2006-2008 the basic value is 2.6 and 2011-2012 is decreased to 2.0. Fixed assets turnover ratio 2006-2008 the basic value is 8.0 and 2011-2012 is increased to 21.7. Total assets turnover ratio 2006-2008 the basic value is 3.6 and 2011-2012 is increased to 6.0. Inventory turnover ratio 2006-2008the basic value is 5.8 and 2011-2012 is increased to 6.0.

Working capital turnover 2006-2008the basic value is 1.3 and 2011-2012 is fluctuating to 1.3. Debtors turnover ratio 2006-2008the basic value is 4.64 and 2011-2012 is increased to 115.6. Analyzing the trend percentage has been higher growth of Net profit, sales and current asset for the year 2008-2012. While analyzing the comparison of balance sheet total assets increased from 21.43% to 36.49 % for the year 2008-2012. While analyzing the common size balance sheet in Net current assets increased from 49.59% to 71.54% for the year 2008-2012.

Suggestions The company should try to improve its cash position. There must be an increasing trend in the coming year. A dynamic market strategy is to be adopted to boost of the sale The company has to take steps to increase the sales in order to get higher profit. The debtors management is effective which should be continued in the following years. The company should try to improve its inventory management. The company should try to investing in more amount of working capital. The company should reduce the operating expenses by cost reduction in order to increase the Net profit margin. The company should control the unexpected expenses. To improve working condition in the organization

To provide amenities to the workers to provide non monitory rewards to employees

CONCLUSION At present the Titan industries limited is becoming more complex because of its dynamic nature. The company financial performance during the year 2011-2012 was the best ever the company should maintain a good effective and efficient management. Bet not satisfactory in the cash position. The strength of the company is proper availability of resources, good environment and employee. Introduction of innovative new products which would fuel the

consumer demand and satisfaction so as to get more sales and more profit thereby increasing the company cash position in future. By implement the above suggestion made along with analysis there is no doubt the company can improve its financial performance.

BIBLIOGRAPHY BOOKS: Prasana Chandra Financial management Theory and Practice, Tata McGraw Hill.

T.S. Reddy and Y. Hariprasad Reddy, Management Accounting. Margham publications, Chennai.

S.N.Maheswari, Management accounting Sultan chand & Sons, Educational publishers, New Delhi. REPORTS:

Annual Report of TITAN INDUSTRIES LIMILED For the year 2006-2008 to 2011-2012. WEBSITES: http://titan.co.in/ http://titanworld.com/in/