Project of Soundarya

“A STUDY ON WORKING CAPITAL MANAGEMENT IN
TITAN COMPANY LIMITED”
INTRODUCTION:
Working Capital Management is significant in Financial Management due
to the fact that it plays a pivotal role in keeping the wheels of a business enterprise
running. Working Capital Management is concerned with short-term financial
decisions.
The Word Working means Day to Day operation of the business, whereas
the word capital means monitory value of assets of the business.
Working Capital Management if carried out Effectively, Efficiently and consistently,

will ensure the health of an organization. A Company invests its funds for long-term
purposes and for short-term operations. That portion of a company‟s capital, invested
in Short-Term or Current Assets to carry on its day to day operations smoothly, is
called the „Working Capital‟.
It refers to all aspects of Current Assets and Current Liabilities. The Management of
Working Capital is no less important than the Management of long-term financial
investment. Sufficient liquidity is necessary and must be achieved and maintained to
provide that funds to pay off obligation as they arise or mature. The adequacy of cash
and other Current Assets together with their efficient handling virtually determine the
survival of the company.
NEED FOR THE STUDY:

The following are the need for the study-
Ø The Study has been conducted for gaining practical knowledge and activities
of Titan Company Limited.
Ø It is important to know Working Capital Management that is closely related
with day-to-day operation of a business and how they manage it. Therefore the
researcher felt to study Working Capital Management.
Ø Titan Company Limited is a Public Sector. In Public Sector industries
Working Capital plays a very important role therefore researcher felt a need to
understand the concept of Working Capital Management.
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OBJECTIVES OF THE STUDY:

The Following are the Objectives of the Study:
ü To understand the concept of Working Capital Management.
ü To evaluate financial position of the company with the help of ratios related to
Working Capital.
ü To Study the Operating efficiency of the business.
ü To analyze the Liquidity Management.
ü To Study the trends in Net Profit, Gross Profit and Operating Profit of the
organization.
ü To understand the Financial Performance of the organization with the help of
ratio analysis related to Working Capital Management.
RESEARCH METHODOLOGY:
Collection of Data:
The Data has been collected from the Secondary Sources inclusive of
Quantitative Data collected from various sources such as:
Ø That is using Company Annual Reports of the Titan Company Limited From
2017-18 to 2022-23.
Ø Reports of the Company disclosed on some websites.
The Data has been analyzed using simple statically tools like Ratios,
Percentage, Charts and Graphs.
LIMITATIONS OF THE STUDY:

▪ The analysis of study mainly depends on the data given by the company.
▪ The Study only covers five years data from 2018-19 to 2022-23.
▪ Limited tools have been used to analyze the data.
▪ The suggestions provided are only based on findings of the study.
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RESEARCH DESIGN:
The Work is divided into Five Chapters, those Chapters are arranged in
sequential order and they are as follows.
Chapter- 1: Introduction
The First Chapter deals with Introduction to the Study, Needs of the Study,
Objectives of the Study, Research Methodology, Limitations of the Study and
Research Design.
Chapter- 2: Conceptual Framework

The Second Chapter focuses on the Framework of Working Capital which
consists of Meaning, Definition, Objectives, Classification, Concept, Importance,
Principles, Ratios of Liquidity Ratio, Turnover Ratio and Factors of Working Capital
Management.
Chapter- 3: Company Profile

The Third Chapter is the Profile of the Titan Company Limited which includes
History of the Company, Present Status, Vision, Mission, Values and Standards, and
Awards for the Company.
Chapter- 4: Analysis and Interpretation of Data

The Fourth Chapter consists of the Analysis and Interpretation of Data relating
to the Titan Company Limited with the help of Statistical Tools, Tables and Charts.
Chapter- 5: Findings, Suggestion and Conclusion

Lastly the Final Chapter is Conclusion which is oriented towards the Findings
and Suggestion of the Study.
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CONCLUSION:
This Chapter deals with Introduction to the Study, Needs for the Study,
and Objectives of the Study, Limitations of the Study, Research Methodology
and Research Design. This Chapter summarizes why and how this study has
been undertaken and gives the Bird eye view of the entire project.
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INTRODUCTION:
In this Chapter the key Concepts of Working Capital have been discussed. It
includes Meaning, Definition, and Approaches to Working Capital Management,
Components, Importance, Concepts, Principles, Factors and Ratios of Working
Capital Management.
Meaning:
Working Capital Management refers to a Company‟s Managerial
accounting strategy designed to monitor and utilize the two Components are Current
Assets and Current Liabilities to ensure the most financially efficient operation of the
Company.
Working Capital Management is a financial metric which represents
Operating Liquidity available to a business, including Governmental Entities, along
with fixed assets such as Plant and Equipment‟s. In ordinary sense, Working Capital
denotes the amount of funds needed for meeting day- to- day operation of a concern.
This is related to short -term assets and short-term sources of financing.
Working Capital Management involves the Relationship between a
firm‟s Short-Term Assets and its Short-Term Liabilities. The Management of Working
Capital involves Managing Inventories, Accounts Receivables and Payables and
Cash.
Working Capital = Current Assets-Current Liabilities
Definition:
According to the Definition of J. S. Mill, “The sum of the Current Asset is the
Working Capital of a business”.
According to the Definition of Weston and Brigham, “Working Capital refers to a
firm‟s Investment in Short-Term Assets, Cash, Short-term Securities, Accounts
Receivables and Inventories”.
According to the Definition of Bonneville, “Any Acquisition of funds which
increases the Current Assets increases Working Capital also for they are one and the
same”.
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Objectives of Working Capital Management:

1. Optimization of Working Capital Operating Cycle:
In Simple terms, Working Capital Cycle starts from the day
Raw Materials are acquired and completes when the finished products are
sold. One of the major Objectives of Working Capital Management is to
ensure that there is no hindrance during the above mentioned process.
It includes Collecting and Processing Raw Materials and other Initial
Investment in Time, placing all the essentials for production beforehand,
Selling finished products as possible, Collecting account receivables on
time and clearing all the account payable‟ in time.
2. Balance Working Capital:
The Good Net Working Capital is required to stay in a
stable equilibrium. The Ratio of Current Assets and Current Liabilities
should be optimized. Because the Lower Value of this Ratio implies that
company is not financially stable to clear its Current Debts, Higher value
is also not an indication of prosperity, it suggests that company has too
many inventories and they are not investing in excess cash.
3. Minimize Cost of Capital:
Working Capital Management focuses on Minimizing Cost
of Capital, Rate of Interest in some special cases. It is only when the
cost of the capital will be lesser that revenue, one can earn profit.
Utilization of longterm funds (in proper mix) is one way of Minimizing
Capital Cost. The Fundamental Principle of Financial Management should be
followed sincerely while deciding the finance mix always.
4. Optimal Return on Current Asset Investment:
The Return on the Investment infused on Short Term Assets must exceed
the Average Cost of Capital to ensure Wealth Maximization. In other
words, The Rate of Return earned from the investment in short term
assets should exceed the rate of interest or Cost of Capital. It can be
useful to assess the potential profitability of a particular investment.
Working Capital Management aims to maximize the return on Current asset
investments.
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5. Expansion of Company’s Investment:

Money you saved from effective Working Capital Management tactics is
being an inexpensive source of finance that can be used for your business
expansion, funds for existing projects or company‟s investment toward expansion
of their idea and Vision towards Growth of an organization.
Importance of Working Capital:

1. Higher Return on Capital:
Firms with Lower Working Capital will post a Higher Return on Capital.
Therefore, Shareholders will benefit from a higher return for every dollar
invested in the business. A Higher Return on invested capital can be
considered an indication that a company is required to spend less to generate
more profit.
2. Improved Credit Profile and Solvency:
The ability to meet Short- term obligations is a pre- requisite to long- term
solvency. And it is often a good indication of counterparty‟s credit risk.
Adequate Working Capital Management will allow a business to pay on time
its short-term obligations.
3. Higher Profitability:
According to some Researchers, the Management of Account Payables and
Receivables is an important driver of small businesses profitability. As such, a
Company is profitable if its revenue exceeds its expenses.
4. Higher Liquidity:
A Large Amount of Cash can be tied up in Working Capital, so a
Company managing it efficiently could benefit from additional liquidity
and be less dependent on external financing. This is especially
important for smaller businesses as they typically have limited
access to external funding sources.
5. Increased Business Value:
Firms with more efficient Working Capital Management will generate
more free cash flows which will result in higher business valuation and
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enterprise. Maximizing your business‟s value is critical when transitioning,

either through sale to a third party or acquisition.
Classification of Working Capital:
According to the Needs of Business, the Working Capital may be classified
into following two bases: A. On the Basis of Periodicity
B On the Basis of Concept
A. On the Basis of Periodicity:
The Requirements of Working Capital are continuous. More Working
Capital is required in a particular season or the peck period of business activity. On
the basis of Periodicity Working Capital can be divided under two categories as
under:
1. Permanent Working Capital
2. Variable Working Capital
(a) Permanent Working Capital: The Type of Working Capital is known
as Fixed Working Capital. Permanent Working Capital means the Part of
Working Capital which is permanently locked up in the current assets to
carry out the business smoothly. The minimum amount of current assets
which is required to conduct the business smoothly during the year is called
Permanent Working Capital.
Fixed Working Capital can further be divided into two categories as
under: 1. Regular Working Capital:
Minimum Amount of Working Capital required keeping the
primary circulation. Some amount of cash is necessary for the Payment
of Wages, Salaries etc.
2. Reserve Margin Working Capital:
Additional Working Capital may also be required for contingencies that
may arise any time. The Reserve Working Capital is the excess of
capital over the needs of the regular Working Capital is kept aside as
reserve for contingencies, such as Strike, Business Depression etc.
(b) Variable or Temporary Working Capital:
The Term Variable Working Capital refers that the level of Working Capital
is temporary and fluctuating. Variable Working Capital may change from one
assets to another and changes with the increase or decrease in the volume of
business.
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The Variable Working Capital may also be Sub divided into following
two Subgroups.
1. Seasonal Variable Working Capital:
Seasonal Working Capital is the additional amount which is
required during the active business seasons of the year. Raw
materials like rawcotton or jute or sugarcane are purchased in particular
season.
2. Special Variable Working Capital:
Additional Working Capital may also be needed to provide
additional Current Assets to meet the unexpected events or special
operations such as extensive marketing campaigns or carrying of special job
etc.
B. On the Basis of Concept:

On the basis of Concept Working Capital is divided into two categories as
under: (a) Gross Working Capital (b)
Net Working Capital
a. Gross Working Capital:

Gross Working Capital refers to total investment in current assets. The
current assets employed in business give the idea about the utilization of
working capital and idea about the economic position of the company.
Gross working A Capital concept is popular and acceptable concept in the
field of finance.
Gross Working Capital = Total Current Assets
b. Net Working Capital:

Net Working Capital means Current Assets minus Current Liabilities.
The difference between Current Assets and Current Liabilities is called
the Net Working Capital. If the Net Working Capital is Positive, Business
is able to meets it‟s Current Liabilities. Net Working Capital concept
provides the measurement for determining the credit worthiness of company.
Net Working Capital = Total Current Assets – Total Current Liabilities

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Working Capital Investment Policies /Approaches:

1. Conservative Policy: As the Name Suggests, this Policy tries to avoid the risk
involved in financing of Current Assets. Here, relatively high proportions of
long-term sources are to be used for financing current assets. The firm not only
matches the current assets with current liabilities.
2. Aggressive Policy: Aggressive Working Capital financing policy is a risky

policy that requires Maximum amount of Investment in Current Assets.
Fluctuating as well as permanent current assets under this policy will be
financed through short- term debt.
3. Highly Aggressive Policy: This is a Highly Risky Policy for financing the
Working Capital. As per this policy, even some part of fixed assets is financed
through short-term sources. Excessive reliance on short-term sources makes
this policy highly risky.
4. Hedging Policy: One of the Policies by which a firm finances its Working
Capital needs is the Hedging Policy, also known as Matching Policy. This
Policy works in an arrangement where the Current Assets of the business are
used perfectly to match the Current Liabilities.
5. Liberal Policy: This Policy involves using short-term financing to fund

longterm assets, Which can be risky but also provides the potential for high
returns. This Policy is typically used by businesses that are confident in their
ability to generate sufficient cash flows to meet their obligations.
6. Maturity Matching Policy: This Policy involves Matching the Maturity of

the Company‟s Assets and Liabilities. This Policy reduces the risk of liquidity
problems and helps ensure that the business can meet its obligations as they
come due.
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Components associated with Working Capital Management:

The Four main Components of Working Capital are:
1. Cash and Cash Equivalents
2. Accounts Receivable (AR)
3. Inventory
4. Accounts Payable (AP)
1. Cash and Cash Equivalents:
Liquidity is an essential facet of Working Capital, and nothing is more
liquid than Cash. Whether it‟s money in the bank or physical bills, a cash
reserve is an asset that provides your business a resource to cover
operational expenses as they arise. These include
a. Money Market Accounts
b. Certificates of Deposit
c. Traded on the Stock Exchange Treasury bills
d. Exchange Traded Funds
2. Accounts Receivable:
Accounts Receivables is another Class of Assets that are calculated into
your Working Capital. They encompass money owed to your business
which you have not collected, or checks submitted that have not been cashed.
As soon as you receive your payments and process your checks, these funds
fall into the Cash category.
Examples of Receivables that you would factor into your Working Capital
include:
• Open Invoices
• Outstanding Credit
3. Inventory:
Some Businesses deal with Tangible Goods that they must purchase and
store before selling to their customers. During this time before the sale, the
products are accounted for as inventory. Because the company plans to sell
the goods soon, they are a liquid asset that counts toward the Working Capital
equation.
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Be sure to include all Inventories regardless of whether it is:

• On Display in a Physical Retail Shop
• Being Stored in a Warehouse
• In Transit from your Supplier
4. Accounts Payable:
Once you have added up all of your assets, the final Working
Capital component is your business‟s Accounts Payable. Include all of the
Liabilities that you expect to owe within the next year. Long Term debt
payments that are due after this 12 month window are not part of
your working capital calculations.
All of the following Liabilities are part of the Account Payable component of Working
Capital:
• Supplier or Vendor Invoices
• Unpaid Dividends
• Upcoming Tax Payments
• Operational Costs Debt Repayments
Concepts of Working Capital Management

There are Two Concepts of Working Capital viz. Quantitative and
Qualitative. Some people also define the two concepts as Gross Concept and Net
Concept.
Ø According to Quantitative Concept, the amount of Working Capital
refers to
„Total of Current Assets‟. Current assets are considered to be Gross Working
Capital in this concept.
Ø The Qualitative Concept gives an idea regarding source of financing

capital. According to qualitative concept the amount of Working Capital
refers to “Excess of Current Assets over Current Liabilities.
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Current Assets:
It is rightly observed that “Current Assets have a Short Life Span. These types of
assets are engaged in current operation of a business and normally used for short-term
operations of the firm during an accounting period i.e. within twelve months. The two
important characteristics of such assets are, (i) Short life span, and (ii) Swift
transformation into other form of assets. Cash Balance may be held idle for a week or
two; Account Receivable may have a life span of 30 to 60 days, and Inventories may
be held for 30 to 100 days.
Current Liabilities:
The Firm Creates a Current Liability towards creditors (sellers) from whom it has
Purchased Raw Materials on Credit. This Liability is also known as Accounts Payable
and shown in the balance sheet till the payment has been made to the creditors. The
claims or obligations which are normally expected to mature of payment within an
accounting cycle (1 year) are known as Current Liabilities. These can be defined as
“Those Liabilities where Liquidation is reasonably expected to require the use of
existing resources properly classifiable as current assets, or the creation of other
current assets, or the creation of other Current Liabilities.”
Principle of Working Capital Management
1. Principle of Equity Position: As per this Principle every Investment in the

Current Assets should contribute to the net worth of the firm. The position of
Current Assets can be well judged by the two ratios; Current assets to total
asset and Current Asset to total sales.
2. Principle of Cost of Capital: Different Sources of Working Capital finance

have different Cost of Capital. Generally there is Negative Relationship
between the Risk and Cost of Capital, which means more the risk less will be
the cost and less the risk more will be the cost. So there should be balance
between the two.
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3. Principle of Maturity of Payment: As per this Principle the firm should

make an every effort regarding the Maturity of Payment. In case the period to
pay back the liabilities is short than it becomes difficult for the firm to meet its
obligations in time.
4. Principle of Risk Variation: There is Direct Relationship between Risk and

Profitability. If the firm makes large Investment in Current Asset increase
liquidity Reduce Risk decrease the opportunity for gain for the firm.
The firm may have Conservative Management Policy which means to

Minimize the Risk or Aggressive Management Policy which means to
Maximize the Risk or Moderate Management Policy which means the balance
between the Risk and Profit.
Factors Affecting Working Capital

1. Length of Operating Cycle
2. Nature of Business
3. Scale of Operation
4. Business Cycle Fluctuation
5. Technology and Production Cycle
6. Seasonal Factors
1. Length of Operating Cycle:

The amount of Working Capital directly depends upon the Length of
Operating Cycle. Operating Cycle refers to the time period involved in production. It
starts right from acquisition of raw material and ends till payment is received after
sale.
2. Nature of Business:
The type of business, firm is involved in, is the next consideration
while deciding the Working Capital. In case of trading concern or retail
shop the requirement of Working Capital is less because Length of
Operating Cycle is small.
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3. Scale of Operation:
The firms Operating at large scale need to maintain more
Inventory, Debtors, etc. So they generally require Large Working Capital
whereas firms operating at small scale require less Working Capital.
4. Business Cycle Fluctuation:

During Boom Period the Market is flourishing so more Demand,
more Production, more Stock, and more Debtors which mean more of Working
Capital is required. Whereas during depression period low demand less
inventories to be maintained, less Debtors, so less Working Capital will be
required.
5. Technology and Production:

If a Company is using Labor Intensive Technique of Production then
more Working Capital is required because company needs to maintain enough
cash flow for making payments to labor whereas if company is using
machineintensive technique of production then less Working Capital is
required because investment in machinery is fixed capital requirement and
there will be less operative expenses.
6. Seasonal Factors:
The Working Capital requirement is constant for the companies which are
selling goods throughout the season whereas the companies which are selling
seasonal goods require huge amount during season as more demand, more stock
has to be maintained and fast supply is needed whereas during off season or slack
season demand is very low so less Working Capital is needed.
Ratios:
Liquidity Ratio
Liquidity Ratios measure a Company‟s ability to pay debt obligations and its margin
of safety through the calculation of metrics including Current Ratio, Quick Ratio and
Cash or absolute ratio. Liability Ratio is generally based on the relationship between
current assets (the sources for meeting short term obligations) and Current Liabilities.
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Current Ratio:
It is a Liquidity Ratio that measures a Company‟s ability to pay Short-Term

and Long-Term Obligation.
Current Ratio = Current assets / Current liabilities
• Quick Ratio or Acid-Test Ratio:

It is measure of how well a company can meet its short Financial Liabilities
by having assets are readily converted into Cash. It is also called Acid-Test
Ratio or Liquid Ratio.
Quick Ratio = Current Asset – Inventory / Current Liability
• Cash Ratio or Absolute Ratio:

It is the Ratio of company‟s total Cash and Cash Equivalents to its Current
Liabilities; the comparison of cash plus cash equivalents to Current Liabilities.
It indicates the extent to which the reality available funds can pay off the
Current Liabilities.
Cash Ratio or Absolute Ratio = Cash / Current Liability
Turnover Ratio:
The Turnover Ratio is the Percentage of mutual fund or other Investments
holdings that have been replaced in a given year, which varies by the mutual fund, its
investment objective and / or the portfolio manager‟s investing style.
Inventory Turnover Ratio:

It is a Ratio showing how many times a Company‟s Inventory is sold and
replaced over a period of time. It measures the Relationship between the Cost of
Goods Sold and the Inventory Level.
Inventory Turnover Ratio = Sales / Closing Inventory or Average Inventory
• Inventory Turnover Ratio in Days:

Inventory Turnover Ratio in Days = 365 / Inventory Turnover Ratio
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• Total Asset Turnover Ratio:

It measures the Value of a Company Sales or Revenues generated relative to the value
of asset. The Standard Ratio of Total Asset Turnover is 2 times. Total Asset Turnover
Ratio = Net Sales / Average Total Asset
• Current Asset to Total Asset Ratio:

It indicates the extent of Total Funds Invested for the purpose of Working Capital and
through light on the importance of Current Asset of a firm.
Current Asset to Total Asset Ratio = Current Asset / Total Asset*100
• Current Asset to Working capital:

Working Capital of company is on the Current Assets are divided by the Working
Capital. It shows the result of Current Asset to Working Capital Ratio.
Current Asset to Working Capital Ratio = Current Asset / Working Capital
• Working Capital to Turnover Ratio:

It shows the Number of times the Working Capital is converted into revenue in an
accounting period or how efficient the Management is in using its Working Capital to
generate Sales Revenue.
Working Capital Turnover Ratio = Sales / Net Working Capital
• Working Capital to Asset Ratio:

This Ratio is useful to evaluating the Company‟s level of Liquidity. Data is to
Calculate the Ratio is collected from the balance sheet.
Working Capital Turnover Ratio = Working Capital / Total Asset * 100
• Gross Profit Ratio:

The Gross Profit Ratio is a Profitability measure calculated as Gross Profit (GP) Ratio
to Net Sales. It shows how much Profit the company generates after deducting its Cost
of Revenue.
Gross Profit Ratio = Gross Profit / Net Sales * 100
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• Net Profit Ratio: The Net Profit Ratio is the Ratio of after Tax Profit to Net Sales. It
reveals the remaining profit after all Costs of Production, Administration, and
Financing have been deducted from Sales, and Income taxes recognized.
Net Profit Ratio = Net Profit / Net Sales * 100
• Operating Profit:
Operating Profit Ratio is referred to as the Ratio that is used to define a Relationship
between the Operating Profit and the Sales. Operating Profit Ratio is type of
Profitability Ratio and is therefore expressed in the form of a percentage.
Operating Profit Ratio = Operating Profit / Net Sales * 100
• Cash to Current Liability Ratio:

The Cash Ratio is the that measures the ability of the company to repay the short term
debts with the Cash or Cash Equivalents, and it is calculated by dividing the
Total Cash and Cash Equivalents of the company with its Total Current Liabilities.
Cash to Current Liabilities Ratio = Cash / Current Liability * 100
CONCLUSION:
After Studying this Chapter we are able to know the Meaning,
Definition, Objectives, Classification, Approaches, Components, Importance,
Concepts and Principles of Working Capital Management. Also factors Affecting
Working Capital Management and Meaning of Ratios relating to Working Capital
Management. This chapter gives theoretical information relating to Working Capital
Management.
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INTRODUCTION:
Titan Company Limited is an Indian Company that mainly manufactures

fashion accessories such as Jewelry, Watches, Fragrances, Eyewear and Indian dress
Wear Segments. Xerxes Desai, future founder and first Managing Director of Titan.
Part of the Tata Group and started as joint venture with the TIDCO, the company has
its corporate headquarters in Electronic city, Bangalore, and registered office in hosur,
Tamil Nadu. As on 31 December 2020, Titan‟s retail chain stands at 1,854 stores, with
retail area crossing 2.4million sq.ft for all its brands covering 292 towns. The
company‟s quality and design proposition and personalized service orientation has
been a key differentiator enabling it to build a deep customer connect. The company
continues to invest in the latest technology for facilitating seamless and immersive
shopping experiences.
Titan, despite its extensive scale, has continued its accelerated growth
trajectory and has always proactively evolved to suit the dynamic needs of the
industry. Titan‟s visionary approach of transforming the customer experience has
presented it with an opportunity to reshape the way consumers interact with
technology.
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Company Details:
Type Public
Industry Lifestyle
Founded 1984; 39 years ago
Headquarters Bangalore, Karnataka, India
Area served Worldwide
Key people N. Muruganandam

(Chairman)
C. K. Venkataraman
(MD, CEO)
Products Watches, Jewellery, Bags, Perfumes, Belts, Wallets
and Eyewear
Revenue Rs 40,883 crore (US$5.1 billion) (2023)
Operating Income Rs 4,447 crore (US$560 million) (2023)
Net Income Rs 3,274 crore (US$410 million) (2023)
Total Assets Rs 27,023 crore (US$3.4 billion) (2023)
Total Equity Rs 11,904 crore (US$1.5 billion) (2023
Owner TIDCO (27.88%) Tata

Sons (25.02%)
Number of employees 7,500 (2020)
Subsidiaries Tanishq Fastrack (fashion accessories)

Titan Engineering and Automation Limited
Carat Lane
Favre-Leuba
Website www.titancompany.in
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History:
Titan Industries Limited, Incorporated in year 1984, launched its operations as

a joint venture between the esteemed Tata Group and the Tamil Nadu Industrial
Development Corporation (TIDCO). The Company commenced their business in the
year 1986. It set up an integrated watch manufacturing facility at Hosur in Tamil Nadu
in the year 1987 with Initial technical know- how from Europe and Japan. In October
1992, they came with a right issue to the part of finance for its expansion
programmers. In the year 1995, they diversified in jewelry under the brand name of
Tannish to capitalize on a fragmented market operating with no brands in urban cities.
Apart from the domestic market, the company started the manufacturing of watches
for several prestigious international brands during the year 1997.
During the year, 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 collections of gold look
watches; and new products in the automatic watches range, which cater to premium
consumers.
On 3 December 2015, Titan announced that its joint venture with Montblanc services
B.V holds majority 51% stake in the joint venture company and Titan holds a 49%
stake. The joint venture company was formed for carrying on the business of single
brand retail trading of Montblanc products in India.
As a Responsible Corporate of the country, the Company supports Project and

Programmed that require intervention. Being a pan –India organization, the Company
continues to support local causes that are important to the communities in which it
operates (including the retail presence) besides supporting issues that are of National
importance. The Company has created Design Impact Programs, which seeks to
engage the youth towards applying design thinking for social impact.
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Board of Directors:
Management
Name Designation
Mr. S Krishnan Chairman
Mr. N N Tata Vice Chairman
Mr. Bhaskar Bhat Director
Mr. C K Venkataraman Managing Director
Ms. Jayashree Muralidharan Director
Ms. Mariam Pallavi Baldev Director
Mr. Ashwani Puri Independent Director
Mr. B Santhanam Independent Director
Mr. Pradyumna Vyas Independent Director
Mr. Sandeep Singhal Independent Director
Dr. Mohanasankar Independent Director

Sivaprakasam
Independent Director
Ms. Sindhu Gangadharan
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Vision:
We Create elevating experiences for the people we touch and significantly impact the
world we work in.
Mission:
We will do this through a pioneering spirit and a caring, Value-driven culture that
fosters innovation drives performance and ensures the highest global standards in
everything we do.
Future Plans
• Titan has launched its fragrance Brand, Skin. This marks the first foray into
personal care category.
• Titan is targeting a turnover of Rs 250crore in the next three-five years.
• It plans to invest Rs50crore over next three-five years on this, largely on
Branding, Marketing Activities, as it will not be manufacturing the product.
• Titan is also looking to enter the helmet category.
Our Values and Standards
• Customer First:
Customers take precedence over all else, always.
• People Make the Brand:
Titanium‟s are at the heart of our success and that is why their dreams and
aspirations are at the forefront of our brand policy.
• Culture and Teamwork:
High Performance is a way of life.
• Creativity and Innovation:
Driven by Innovation and Creativity, we focus on smarter approaches and
newer technologies.
• Passion for Excellence:
In all our pursuits, we ceaselessly strive for excellence.
• Corporate Citizenship:
We ensure that a part of our resources is invested for the betterment of the
environment and community.
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COMPANY PRODUCTS:
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Awards / Achievements:
• Sonata wins the „Best Brand Launch of the Year‟ at the „Brand Equity
Marketing Awards‟.
• Tanishq received the „Red Dot: Best of the Best‟ award for innovative laser
cut tube jewelry. Red Dot is the most prestigious and coveted award in the
world in the field of Product Design and the „Red Dot: Best of the Best‟ is the
highest award in the competition and is awarded for groundbreaking design
innovation.
• Tanishq Rivaah wins Gold in Effie Awards 2019.
• Tanishq received the „World Branding Award‟ in London at Kensington Place.
Tanishq was the only brand selected from India.
• Tanishq wins „Excellence in customer service and sales process initiative‟ at

the „Retail Jewelers Guild Award‟.
• Titan Eye Plus felicitated by NASSCOM in the Special Category – „Best use
of technology by an enterprise for Excellent Customer Service‟.
• Titan Eye Plus wins Bronze in the prestigious ACEF Asian Leadership Awards.
• Titan Eye Plus won at the „International Customer Experience Strategy‟
category, hosted by CX International in Amsterdam and judged by 84 CEOs
and global customer experience specialists. Jury was impressed with the
brand‟s transforming NPS.
• Titan Company accredited „Best Employer Award‟ by Tamil Nadu

Government under the category of employing most number of differently-abled
personnel‟.
• Titan manufacturing units won multiple Health and Safety awards from
„National Safety Council‟.
• Titan Watches e-commerce bags 3 awards at Digies 2019.
• Titan won the first prize under Innovation Category at the 31 st Qimpro
Qualtech Award 2019, for the Balance Dynamic Hydraulic Fixture project.
• Titan Won “Design Honour” award for the project Raga Masaba at the Tata
Innovista Finals.
Page 25
• Titan watches e-commerce bags DMA ASIA ECHO Awards 2019 in the „Best
Customer Acquisition Campaign‟ category.
• Titan watches win the Brand Equity Shark Awards.

• Titan‟s Encircle Program wins in Loyalty Program category in future of Retail
Awards 2019.
• Titan Company wins the R K Swamy High Performance Brand Award by
AIMA.
• Tanishq wins at Global Marketing Excellence Awards 2019 in the outdoor
and Location Based Marketing.
• Tanishq wins at the Great Lifestyle Brands Awards; Smarties 2019
India; Maddies Mobile Awards 2019; Sammies 2019.
• World of Titan wins „Customer Service Excellence‟ and „Retail Store of
year –
Merchandising‟ awards in Future of Retail Awards 2019.
• Titan Eye Plus wins Bronze in the prestigious ACEF Leadership
Awards. • Greentech Environmental Award – 2020
Hosur Watch Manufacturing plant won under the Environmental
protection category for the Sustained Excellence in Environment
Management Practices, our fifth consecutive victory in this category.
The “Environmental Best Practices Awards” is instituted to:
* Recognize and Award “Excellence” in Environmental practices in Industries

* Learn, compare and replicate the best practices among various
Industries There were 130 companies who had participated at an All India
Level across various industry sectors.
• TRRAIN retail award – runner up position.
• Pitch – Impact Marketing Award for engaging content
• The Integrated Manufacturing plant of the Eye Care Division won the Aatma
Nirbhar Factory Award by International research institute for Manufacturing,
India of the „Aatmanirbhar factory Recognition Programme.
• Gold Medal in the National Awards for Manufacturing Competitiveness
(NAMC).
Page 26
CONCLUSION:
The Study of Company Profile reveals about
company‟s Introduction, Company Profile, History, Vision, Mission, Board of
Directors (Managing Directors), Our Values and Standards , Awards / Achievements
of the Titan Company Limited in India.
Page 27
INTRODUCTION:
This Chapter consists of Analysis of Working Capital Management of Titan

Company Limited, using 5 years financial data which are 2018-19, 2019-20, 2020-21,
2021-22, and 2022-23.
Following are the Ratios of Working Capital Management used to compute in

this chapter:
• Current Ratio
• Quick Ratio
• Cash Ratio
• Inventory Turnover Ratio
• Inventory Turnover Ratio in days
• Total Assets Turnover Ratio
• Current Assets to Total Asset Ratio
• Working Capital
• Current Assets to Working Capital Ratio
• Working Capital Turnover Ratio
• Working Capital to Asset Ratio
• Gross Profit Ratio
• Net Profit Ratio
• Operating Profit Ratio
• Cash to Current Liability Ratio
Page 28
Current Ratio:
It is a Liquidity Ratio that measures a company‟s ability to pay short-term
obligations.
Current Ratio = Current Assets / Current Liabilities
Table No. 4.1: Table showing Current Ratio of Titan Company Limited from
2018-19 to 2022-2023
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Current Assets 9,085 10,121 13,197 16,379 20,686
(In Crores)
Current Liabilities 5,169 5,628 7,714 9,559 11,521
(In Crores)
Current Ratio 1.75 1.79 1.71 1.71 1.79
Source: Annual Report
Chart – 4.1
Current ratio
1.8
1.78
1.79 1.79
1.76
1.74
1.75
1.72
1.7
1.71 1.71
1.68
1.66
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The table 4.1 shows Current Ratio of Titan Company Limited from the year
2018-19 to 2022-23. It shows mixed trend. It was highest in the year 2019-20 and in
the next two years that is 2020-21 and 2021-22 it got decreased to 1.71 and again in
the year 2022-23 it got increased to 1.79.
Page 29
Quick Ratio:
It is a measure of how well a Company can meet its short term Financial
Liabilities by having assets which are readily converted in to cash. It also called
AcidTest-Ratio or Liquid Ratio.
Quick Ratio = Current Asset – Inventory / Current Liability
Table No. 4.2 table showing Quick Ratio of Titan Company Limited from
2018-2019 to 2022-2023.
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Current Assets 9,085 10,121 13,197 16,379 20,686
(In Crores)
(In Crores)
Quick Ratio 0.45 0.37 0.62 0.37 0.49
Source: Annual
Report
Quick Ratio
0.7
0.6
0.62
0.5
0.49
0.4 0.45
0.3 0.37 0.37
0.2
0.1
0
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Chart-4.2
Interpretation:
The table 4.2 shows Quick Ratio of Titan Company Limited from year 2018-19 to
2022-23. The chart is showing mixed trend. It was highest in the year 2020-21 that is
0.62 and lowest in the year 2019-20 and 2021-22 that is 0.37. It was 0.45 in the year
2018-19, 0.49 in the year 2022-23.
Page 30
Cash Ratio:
It is the Ratio of a Company‟s Total Cash and Cash Equivalents to its Current
Liabilities. It is the comparison of Cash plus Cash Equivalents to Current Liabilities.
It indicates the extent to which the company has readily available funds to pay off the
Current Liabilities.
Cash Ratio = Cash / Current Liabilities
Table No. 4.3 Table showing Cash Ratio of Titan Company Limited from
2018-2019 to 2022-2023.
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Cash (In Crores) 36 75 181 117 119
(In Crores)
Cash Ratio 0.01 0.01 0.02 0.01 0.01
Chart – 4.3
Cash Ratio
0.025
0.02
0.02
0.015
0.01
0.01 0.01 0.01 0.01
0.005
0
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The table 4.3 shows Cash Ratio of Titan Company Limited from the year
2018-19 to 2022-23. It was highest in the year 2020-21 that is 0.02. In the year
201819, 2019-20, 2021-22 and 2022-23 that is 0.01. The Cash Ratio is constant.
Page 31
Inventory Turnover Ratio:

It is a Ratio showing how many times a Company‟s Inventory is sold and
replaced over a period of time. It measures the Relationship between the Cost of
Goods Sold and the Inventory level.
Inventory Turnover Ratio = Sales / Average Inventory
Table No.4.4 table showing Inventory Turnover Ratio of Titan

Company Limited from 2018-19 to 2022-23.
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Sales (In Crores) 19,069 21,052 21,644 27,210 38,270
Average Inventory 6,719 8,103 8,408 12,787 14,952
(In Crores)
Inventory Turnover 2.83 2.59 2.57 2.12 2.55
Ratio
Chapter-4.4
Inventory Turnover Ratio

3
2.5 2.83
2.59 2.57 2.55
2
2.12
1.5
0.5
0
2018-19 2019-20 2020-21 2021-22 2022-23
Interpretation:
The Table 4.4 shows Inventory Turnover Ratio of Titan Company Limited from
year 2018-19 to 2022-23. It depicts decreasing trend. In the year 2018-19 it was
highest that is 2.83. Later it in the year 2019-20 to 2021-22 it decreased to 2.59, 2.57
and 2.12 and again in the year 2022-23 it increased to 2.55.
Page 32
Inventory Turnover Ratio in Days:

Inventory Turnover Ratio in Days = 365 / Inventory Turnover Ratio
Table No.4.5 table showing Inventory Turnover Ratio in Days of Titan

Year 2018-19 2019-20 2020-21 2021-22 2022-23
Days 365 365 365 365 365
Inventory 2.83 2.59 2.57 2.12 2.55
Turnover Ratio
Inventory 128.97 140.92 142.02 172.16 143.13
Turnover
Ratio in Days

Chart – 4.5
Inventory Turnover Ratio in Days

200
150 172.16
10 140.92 142.02 143.13
128.97
0
50
0
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The Table 4.5 shows Inventory Turnover Ratio in Days of Titan Company Limited
From 2018-19 to 2022-23. It is showing an increasing trend. From 2018-19 to 202122
it increased from 128.97, 140.92, 142.02 and 172.16 and in the year 2022-23 it
decreased to 143.13.
Page 33
Total Assets Turnover Ratio:

It measures the Value of a Company Sales or Revenues generated relative to
the value of its assets. The Standard Ratio of Total Asset Turnover is 2 times. Total
Asset Turnover Ratio = Net Sales / Average Total Asset
Table No.4.6 table showing Total Assets Turnover Ratio of Titan

Year 2018-19 2019-20 2020-21 2021-22 2022-23
Net Sales (In Crores) 1,374 1,493 974 2,180 3,333
Average Total Assets 11,470 13,550 16,452 20,137 25,088
(In Crores)
Total Asset 0.11 0.11 0.05 0.10 0.13
Turnover
Ratio
Chart – 4.6
Total Asset Turnover Ratio

0.14
0.12 0.13
0.1 0.11 0.11
0.08
0.10
0.06
0.04 0.05
0.02
0
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The table 4.6 shows Total Asset Turnover Ratio of Titan Company Limited From
2018-19 to 2022-23. The chart is showing a mixed trend. It was highest in the year
2022-23 that is 0.13 and was lowest in the year 2020-21 that is 0.05 and in the year
2018-19, 2019-20 and 2021-22 the Total Asset Turnover Ratio is constant.
Page 34
Current Assets to Total Asset Ratio:

It indicates the extent of Total Funds invested for the purpose of Working
Capital and through light on the importance of Current Asset of a firm.
Current Assets to Total Asset Ratio = Current Asset / Total Asset * 100
Table No.4.7 table showing Current Asset to Total Asset Ratio of Titan
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Current Assets 9,085 10,121 13,197 16,379 20,686
(In Crores)
Total Assets 11,470 13,550 16,452 20,137 25,088
(In Crores)
Current Asset to 79.20 74.69 80.21 81.33 82.45
Total Asset
Ratio
Chart-4.7
Current Asset to Total Asset Ratio

84
82
82.45
80 81.33
80.21
78 79.2
76
74
74.69
72
70
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
Table 4.7 shows Current Assets to Total Asset Ratio of Titan Company Limited
from 2018-19 to 2022-23. The chart is showing an increasing trend. In the year
201819 it was 79.2 and from 2019-20 to 2022-23 it increased to 74.69, 80.21, 81.33,
Page 35
82.45. In the year 2022-23 it was highest that is 82.45 and it was lowest in the year
2019-20 that is 74.69.
Working Capital:
Working Capital = Current Asset – Current Liabilities
Table No.4.8 table showing Working Capital of Titan Company Limited

from year 2018-2019 to 2022-23.
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Current Assets 9,085 10,121 13,197 16,379 20,686
(In Crores)
(In Crores)
Working Capital 3,916 4,493 5,483 6,820 9,165
Source: Annual
Report
Chart - 4.8
Working Capital
10,000
9,000
8,000 9,165
7,000
6,000 6,820
5,000
5,483
4,000 4,493
3,000 3,916
2,000
1,000
0
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The Table 4.8 shows Working Capital of Titan Company Limited from 2018-19
to 2022-23. It is showing an increasing trend. It was highest in the year 2022-23 that is
9,165 and lowest in the year 2018-19 that is 3,916. Every year there is an increase in
Working Capital Management which indicates positive sign in the company‟s day to
day operations.
Page 36
Current Assets to Working Capital Ratio:

Working Capital of company is on the Current Assets are divided by the Working
Capital. It shows the result of Current Asset to Working Capital Ratio.
Current Asset to Working Capital Ratio = Current Asset / Working Capital
Table No. 4.9 The table showing Current Assets to Working Capital Ratio
of Titan Company Limited from 2018-2019 to 2022-2023.
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Current Assets 9,085 10,121 13,197 16,379 20,686
(In Crores)
Working Capital 5,169 5,628 7,714 9,559 11,521
(In Crores)
Current Assets 2.31 2.25 2.40 2.40 2.25
to
Working Capital
Chart -4.9
Current assets to working capital ratio

2.45
2.4
2.40 2.40
2.35
2.3
2.31
2.25
2.25 2.25
2.2
2.15
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The table 4.9 shows Current Asset to Working Capital Ratio of Titan Company
Limited from 2018-19 to 2022-23. The chart is showing a mixed trend. In the year
2020-21 and 2021-22 it was highest that is 2.40 and in the year 2019-20 and 2022-23
it was decreasing and constant and that is 2.25 and in the year 2018-19 it was
2.31.
Page 37
Working Capital Turnover Ratio:

It shows the number of times the Working Capital is converted into revenue in an
accounting period or how efficient the Management is in using its Working Capital to
generate Sales Revenue.
Working Capital Turnover Ratio = Sales / Net Working Capital
Table No. 4.10 The table showing Working Capital Turnover Ratio of
Titan Company Limited from 2018-19 to 2022-23.
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Sales (In Crores) 19,069 21,052 21,644 27,210 38,270
Net Working 3,916 4,493 5,483 6,820 9,165
Capital
(In Crores)
Working Capital 4.86 4.68 3.94 3.98 4.17
Turnover Ratio
Chart – 4.10
Working Capital Turnover Ratio

6
5
4 4.86 4.68
3.94 3.98 4.17
3
2
1
0
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The table 4.10 shows Working Capital Turnover Ratio of Titan Company
Limited from 2018-19 to 2022-23. It has mixed trend. It was highest in the year
201819 that is 4.86 and lowest in the year 2020-21 that is 3.94. It was 4.68 in the year
2019-20, 3.98 in the year 2021-22 and 4.17 in the year 2022-23.
Page 38
Working Capital to Asset Ratio:

This Ratio is useful to evaluating the company‟s level of liquidity. Data is to
calculate the Ratio is collected from the Balance sheet.
Working Capital to Asset Ratio = Working Capital / Total Assets * 100
Table No. 4.11 The table showing Working Capital to Asset Ratio of
Titan Company Limited from 2018-19 to 2022-23.
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Working Capital 3,916 4,493 5,483 6,820 9,165
(In Crores)
Total Assets 11,470 13,550 16,452 20,137 25,088
(In Crores)
Working Capital to 34.14 33.15 33.32 33.86 36.53
Asset Ratio
Chart-4.11
Working Capital to Asset Ratio

37
36 36.5 3
35
34
34.14 33.86
33
33.15 33.3 2
32
31
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The table 4.11 shows Working Capital to Asset Ratio of Titan Company
Limited from 2018-19 to 2022-23. It has mixed trend. It was highest in the
year 202223 that is 36.53 and lowest in the year 2019-20 that is 33.15. It was 34.14
in the year 2018-19, 33.32 in the year 2020-21, 33.86 in the year 2021-22.
Page 39
Gross Profit Ratio:

The Gross Profit Ratio is a Profitability measure Calculated as Gross Profit (GP) Ratio
to Net Sales. It shows how much profit the company generates after deducting its cost
of revenue.
Gross profit ratio = Gross profit / Net sales * 100
Table No. 4.12 The table showing Gross Profit Ratio of Titan Company
Limited from 2018-19 to 2022-23.
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Gross Profit (In 1,997 2,105 1,370 2,983 4,465
Crores)
1,374 1,493 974 2,180 3,333
Net Sales (In Crores)
145.34 140.99 140.65 136.83 133.96
Gross Profit Ratio
Source: Annual
Report
Chart-4.12
Gross Profit Ratio

148
146
144 145.34
142
140
140.99 140.65
138
136
136.83
134
132 133.96
130
128
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The table 4.12 shows Gross Profit Ratio of Titan Company Limited from year
2018-19 to 2022-23. The Chart showing decreasing trend. It was highest in the year
2018-19 that is 145.34 and lowest in the year 2022-23 that is 133.96. It was 140.99 in
the year 2019-20, 140.65 in the year 2020-21, 136.83 in the year 2021-22.
Page 40
Net Profit Ratio:

The Net Profit Ratio is the Ratio of after tax profit to Net Sales. It reveals the remaining
profit after all Costs of Production, Administration, and Financing have been deducted
from Sales, and Income taxes recognized.
Net Profit Ratio = Net Profit / Net Sales * 100
Table No. 4.13 The table showing Net Profit Ratio of Titan Company
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Net Profit (In 1,927 2,102 1,3272 2,932 4,465
Crores)
1,374 1,493 974 2,180 3,333
Net Sales (In Crores)
140.24 140.79 136.24 134.49 133.96
Net Profit Ratio
Chart – 4.13
Net Profit Ratio

142
140 140.79
138 140.24
136
136.24
134
134.49 133.96
132
130
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The table 4.13 shows Net Profit Ratio of Titan Company Limited from year
2018-19 to 2022-23. It is showing decreasing trend. It was highest in the year 2019-20
that is 140.79 and lowest in the year 2022-23 that is 133.96. It increased from 2018-19
till 2019-20 and decreased from 2020-21 to 2022-23. It was 140.24 in the year
201819, 136.24 in the year 2020-21, 134.49 in the year 2021-22.
Page 41
Operating Profit Ratio:

Operating Profit Ratio is referred to as the ratio that is used to define a
Relationship between the Operating Profit and the Sales. Operating Profit Ratio is type
of Profitability Ratio and is therefore expressed in the form of a percentage.
Operating Profit Ratio = Operating Profit / Net Sales * 100
Table No.4.14 table showing Operating Profit Ratio of Titan Company

Year 2018-19 2019-20 2020-21 2021-22 2022-23
Operating Profit 2,179 2,425 1,719 3,224 4,814
(In Crores)
Net Sales (In Crores) 1374 1493 974 2180 3333
Operating Profit 158.58 162.42 176.48 147.88 144.43
Ratio
Chart – 4.14
Operating Profit Ratio

200
180
160 176.4 8
140 158.5 8 162.4 2
147.8 8 144.4 3
120
100
80
60
40
20
0
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The table 4.14 shows Operating Profit Ratio of Titan Company Limited from year
2018-19 to 2022-23. The Chart showing mixed trend. It was highest in the year
202021 that is 176.48 and lowest in the year 2022-2023 that is 144.43. It was 158.58
in the year 2018-19, 162.42 in the year 2019--20, 147.88 in the year 2021-22.
Page 42
Cash to Current Liability Ratio:

The Cash Ratio is the that measures the ability of the company to repay the short term
debts with the Cash or Cash Equivalents, and it is calculated by dividing the total cash and
cash equivalents of the company with its Total Current Liabilities.
Cash to Current Liabilities Ratio = Cash / Current liability * 100
Table No.4.15 table showing Cash to Current Liability Ratio of Titan

Year 2018-19 2019-20 2020-21 2021-22 2022-23
Cash (In Crores) 36 75 181 117 119
Current liability 5,169 5,628 7,714 9,559 11,521
(In Crores)
Cash to current 0.69 1.33 2.34 1.22 1.03
liability ratio
Chart - 4.15
Cash to Current Liability Ratio
2.5
2.34
2
1.5
1.33 1.22
1
1.03
0.5 0.69
0
2018-19 2019-20 2020-21 2021-22 2022-23
Year
Interpretation:
The table 4.15 shows Cash to Current Liability Ratio of Titan Company
Limited from 2018-19 to 2022-23. It is indicating mixed trend. It was highest in the
year 2020-21 that is 2.34 and lowest in the year 2018-19 that is 0.69. It was 1.33 in the
year 2019-20, 1.22in the year 2021-22, 1.03 in the year 2022-23.
Page 43
Conclusion:
After Studying this Chapter, we will know about the Working Capital
Management of Titan Company Limited, as well as some of Working Capital Ratios
like Liquidity Ratio, Turnover Ratio, Working Capital to Asset Ratio etc.,
Page 44
INTRODUCTION:
This Chapter contains the findings on the basis of the Analysis of the Data
used in 4th chapter „Analysis and Interpretation of Data‟ and then the Suggestions are
drawn from these findings. Finally, the chapter consists of the conclusion of the study.
FINDINGS:
The Study is made in order to know the efficiency of Working Capital
Management in Titan Company Limited.
u Current Ratio of Titan Company Limited indicates mixed trend. It was highest
in the year 2019-20 till 2022-23 that is 1.79 and lowest in the year 2020-21 till
2021-22 that is 1.71, which is below Standard 2:1
u Quick Ratio of Titan Company Limited shows mixed trend. It was highest in
the year 2020-21 that is 0.62 and lowest in the year 2019-20 till 2021-22 that is
0.37 and Quick Ratio of Titan Company Limited is Unfavorable.
u Cash Ratio of Titan Company Limited It was highest in the year 2020-21 that
is 0.02 and lowest in the year 2018-19, 2019-20, 2021-22 and 2022-23 that is
0.01. The Titan Company Limited has not maintained adequate Cash which is
below the Standard.
u Inventory Turnover Ratio of Titan Company Limited. It recorded decreasing
trend. It was highest in the year 2018-19 that is 2.83 and lowest in the year
2021-22 that is 2.12 and the standard ratio should be between 5 to 10 but the
Titan Company failed to maintain the proper Inventory Management.
u Inventory Turnover Ratio in Days of Titan Company Limited from 2018-19 to
2022-23. It is showing an increasing trend. It was highest in the year 2021-22
that is and lowest in the year 2018-19 that is 128.97.
u Total Asset Turnover Ratio of Titan Company Limited from 2018-19 to
202223. Total Asset Turnover Ratio recorded mixed trend. It was highest in the
year 2022-2023 that is 0.13 and lowest in the year 2020-21 that is 0.05.
Page 45
u Current Assets to Total Asset Ratio of Titan Company Limited indicates

increasing trend. It was highest in the year 2022-23 that is 82.45 and lowest in
the year 2019-20 that is 74.69.
u Working Capital of Titan Company Limited reveals an increasing trend. It was
highest in the year 2022-23 that is 9,165 and lowest in the year 2018-19 that is
3,916. Every year there is an increase in Working Capital Management which
indicates positive sign in the company‟s day to operations.
u Current Asset to Working Capital Ratio of Titan Company Limited from
2018-19 to 2022-23. It showing mixed trend. It was highest in the year 202021
and 2021-22 that is 2.40 and lowest in the year 2019-20 and 2022-23 that is
2.25.
u Working Capital Turnover Ratio of Titan Company Limited has mixed trend. It
was highest in the year 2018-19 that is 4.86 and lowest in the year 2020-21
that is 3.94.
u Working Capital to Asset Ratio of Titan Company Limited has mixed trend. It
was highest in the year 2022-23 that is 36.53 and lowest in the year 2019-20
that is 33.15.
u Gross Profit Ratio of Titan Company Limited has decreasing trend. It was
highest in the year 2018-19 that is 145.34 and lowest in the year 2022-23 that
is 133.96.
u Net Profit Ratio of Titan Company Limited has decreasing trend. It was
is 133.96
u Operating Profit Ratio of Titan Company Limited has mixed trend. It was
is 144.43.
u Cash to Current Liability Ratio of Titan Company Limited from has mixed
trend. It was highest in the year 2020-21 that is 2.34 and lowest in the year
2018-19 that is 0.69.
Page 46
SUGGESTIONS:
Analysis of Working Capital Management of the organization reveals many
strong and weak points of Titan Company Limited.
▪ As per the Current Ratio is concerned the Company is suggested to

maintain the Standard Current Ratio that is 2:1.
▪ As per the Quick Ratio it is less than 1 so, the Company is suggested to
improve their Current Assets in the future.
▪ As per the Cash Ratio is concerned the Company is suggested to maintain
Standard Cash Ratio is 0.5.
▪ It is suggested that it should try to maintain the same Inventory level and
Company should ensure on time delivery and maintain proper Inventory.
▪ As per the Total Asset Turnover Ratio is concerned the Company is
suggested to maintain the Standard.
▪ The Working Capital of the company is very good and the company is
suggested to maintain the same trend in future also.
▪ The Current Asset to Working Capital was very low in the year 2022-23
that is 2.25; the company is advised to increase the Working Capital.
▪ It is suggested that Gross Profit Ratio is every year declining and to
improve their Gross Profit Ratio.
▪ The Operating Profit of the company is decreased in last year 2022-23.
So, the company is advised to increase the sales and reduce the Fixed and
Variable Costs.
Page 47
CONCLUSION:
After Studying this Chapter we come to know that Working Capital
Management of Titan Company Limited. Good Management of Working Capital shall
ensure that a company has the required resources (assets and liabilities) to have
successful and healthy business operations and meet its Current Liabilities. The Study
helped researcher to gain knowledge of Working Capital Management.
Page 48

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“A STUDY ON WORKING CAPITAL MANAGEMENT IN

TITAN COMPANY LIMITED”

Working Capital Management if carried out Effectively, Efficiently and consistently,

NEED FOR THE STUDY:

OBJECTIVES OF THE STUDY:

LIMITATIONS OF THE STUDY:

Chapter- 2: Conceptual Framework

Chapter- 3: Company Profile

Chapter- 4: Analysis and Interpretation of Data

Chapter- 5: Findings, Suggestion and Conclusion

Objectives of Working Capital Management:

5. Expansion of Company’s Investment:

Importance of Working Capital:

enterprise. Maximizing your business‟s value is critical when transitioning,

B. On the Basis of Concept:

a. Gross Working Capital:

Gross Working Capital = Total Current Assets

b. Net Working Capital:

Net Working Capital = Total Current Assets – Total Current Liabilities

Working Capital Investment Policies /Approaches:

2. Aggressive Policy: Aggressive Working Capital financing policy is a risky

5. Liberal Policy: This Policy involves using short-term financing to fund

6. Maturity Matching Policy: This Policy involves Matching the Maturity of

Components associated with Working Capital Management:

Be sure to include all Inventories regardless of whether it is:

Concepts of Working Capital Management

Ø The Qualitative Concept gives an idea regarding source of financing

Principle of Working Capital Management

1. Principle of Equity Position: As per this Principle every Investment in the

2. Principle of Cost of Capital: Different Sources of Working Capital finance

3. Principle of Maturity of Payment: As per this Principle the firm should

4. Principle of Risk Variation: There is Direct Relationship between Risk and

The firm may have Conservative Management Policy which means to

Factors Affecting Working Capital

1. Length of Operating Cycle:

4. Business Cycle Fluctuation:

5. Technology and Production:

It is a Liquidity Ratio that measures a Company‟s ability to pay Short-Term

• Quick Ratio or Acid-Test Ratio:

• Cash Ratio or Absolute Ratio:

Inventory Turnover Ratio:

• Inventory Turnover Ratio in Days:

• Total Asset Turnover Ratio:

• Current Asset to Total Asset Ratio:

• Current Asset to Working capital:

• Working Capital to Turnover Ratio:

• Working Capital to Asset Ratio:

• Gross Profit Ratio:

• Cash to Current Liability Ratio:

Titan Company Limited is an Indian Company that mainly manufactures

Founded 1984; 39 years ago

Headquarters Bangalore, Karnataka, India

Area served Worldwide

Key people N. Muruganandam

Revenue Rs 40,883 crore (US$5.1 billion) (2023)

Operating Income Rs 4,447 crore (US$560 million) (2023)

Net Income Rs 3,274 crore (US$410 million) (2023)

Total Assets Rs 27,023 crore (US$3.4 billion) (2023)

Total Equity Rs 11,904 crore (US$1.5 billion) (2023