From the following Financials of Titan Company for the period 2014 2016, Appraise the

financial health from the point of view of Liquidity, Solvency, Profitability and Efficiency.

STANDALONE BALANCE SHEET OF

------------------- in Rs. Cr. -------------------
TITAN COMPANY

Mar 16 Mar15 Mar 14

12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 88.78 88.78 88.78
Total Share Capital 88.78 88.78 88.78
Reserves and Surplus 3,425.82 3,003.23 2,435.18
Total Reserves and Surplus 3,425.82 3,003.23 2,435.18
Total Shareholders Funds 3,514.60 3,092.01 2,523.96
NON-CURRENT LIABILITIES
Long Term Borrowings 0.00 0.00 0.00
Other Long Term Liabilities 0.00 0.00 0.00
Long Term Provisions 106.92 87.45 71.76
Total Non-Current Liabilities 106.92 87.45 71.76
CURRENT LIABILITIES
Short Term Borrowings 113.05 99.79 806.27
Trade Payables 1,739.20 1,939.31 857.73
Other Current Liabilities 819.25 308.95 1,536.10
Short Term Provisions 83.51 344.73 311.20
Total Current Liabilities 2,755.01 2,692.78 3,511.30
Total Capital And Liabilities 6,376.53 5,872.24 6,107.02
ASSETS
NON-CURRENT ASSETS
Tangible Assets 758.56 679.86 590.34
Intangible Assets 10.04 3.37 5.89
Capital Work-In-Progress 106.05 54.93 32.87
Fixed Assets 874.65 738.16 629.11
Non-Current Investments 73.98 32.63 26.57
Deferred Tax Assets [Net] 23.93 19.67 9.35
Long Term Loans And Advances 272.21 242.83 203.72
Total Non-Current Assets 1,244.77 1,033.29 868.75
CURRENT ASSETS
Inventories 4,442.24 4,047.43 3,867.19
Trade Receivables 195.13 187.35 152.02
Cash And Cash Equivalents 111.66 210.20 888.93
Short Term Loans And Advances 379.08 389.61 313.42
Other Current Assets 3.65 4.36 16.71
5,131.76 4,838.95 5,238.27
Total Current Assets
Total Assets 6,376.53 5,872.24 6,107.02
 Titan Company

Standalone Profit & Loss account ( Rs in Cr.)

Mar 16 15-Mar 14-Mar

INCOME
Revenue From Operations [Gross] 11,208.11 11,824.54 10,854.43
Less: Excise/Sevice Tax/Other Levies 31.21 33.5 39.35
Revenue From Operations [Net] 11,176.90 11,791.04 10,815.08
Other Operating Revenues 87.63 112.17 100.71
Total Operating Revenues 11,264.53 11,903.21 10,915.79
Other Income 64.36 70.58 120.19
Total Revenue 11,328.89 11,973.79 11,035.98
EXPENSES
Cost Of Materials Consumed 7,423.95 7,833.99 6,558.78
Purchase Of Stock-In Trade 956.23 1,123.94 1,591.42
Changes In Inventories Of FG,WIP And Stock-
-191.39 -204.32 -99.57
In Trade
Employee Benefit Expenses 681.18 625.65 534.49
Finance Costs 42.28 80.66 87.11
Depreciation And Amortisation Expenses 96.91 87.39 65.59
Other Expenses 1,449.07 1,370.59 1,282.23
Total Expenses 10,458.23 10,917.90 10,020.05
Profit/Loss Before Exceptional,
870.66 1,055.89 1,015.93
ExtraOrdinary Items And Tax
Profit/Loss Before Tax 870.66 1,055.89 1,015.93
Tax Expenses-Continued Operations
Current Tax 185.7 241 263
Less: MAT Credit Entitlement 16.63 0 0
Deferred Tax -4.26 -8.18 -1.31
Tax For Earlier Years 0 0 13.1
Total Tax Expenses 164.81 232.82 274.79
Profit/Loss After Tax And Before
705.85 823.07 741.14
ExtraOrdinary Items
Profit/Loss From Continuing Operations 705.85 823.07 741.14
Profit/Loss For The Period 705.85 823.07 741.14

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 7.95 9.27 8.35
Diluted EPS (Rs.) 7.95 9.27 8.35
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 195.31 204.19 186.44
Tax On Dividend 39.76 41.57 31.68
Equity Dividend Rate (%) 220 230 210
 ANALYSIS
Mar- Mar- Mar-
Analysis Details 16 15 14
Liquidity
Current ratio 1.86 1.8 1.49
Quick ratio 0.25 0.29 0.39
Cash Ratio 0.04 0.08 0.25
Solvency Ratios
Debt Equity 0.03 0.03 0.32
Proprietary 0.55 0.53 0.41
Interest coverage 22 14 13
Dividend Coverage
(Equity) 3.61 4.03 3.98
Debt Service
Coverage 5.44 5.49 1
Profitability Ratios
GP Ratio 27 26 27
NP Ratio 6.32 6.98 6.85
Operating Profit-
Ratio 93 92 91
ROCE 25 36 42
RTSF 20 27 29
ROE 20 27 29
ROA 14 19 18
Efficiency Ratio
ITR. 1.93 2.21 2.05
58.6 69.6
DTR. 1 9 71.4
CTR. 4.67 6.39 9.26
12.7 15.9 17.1
FATR. 8 7 9
WCTR. 4.94 6.09 6.26

SUMMARY
The Liquidity ratios (current, quick ratio & cash ratio) are less and it is showing a
trend of decrease from 2014 to 2016. It indicates that financial stability of company
is going to a bad situation.

Solvency ratio on the analysis (Debt Equity, Proprietary, Interest coverage, Dividend
Coverage (Equity) & Debt Service Coverage) is showing low rations and there is no
specific improvement between 2014 to 2016 this indicates company is in a financial
risk.

The Profitability ratios shows a good sign as the good sign to companys stability as
the sails are going on a good way and company is sustain its growth.

The Efficiency ratios are also showing good sails turn over on the company is in a
growing treat.