THREE MANDATORY PROJECT REPORTS ON

GENERAL MANAGEMENT
“AWAERNESS OF MUDRA YOJANA TO AMONG PEOPLE IN AMBARNATH”

SPECIALIZATION
“An Analytical Study on the Financial Statements of Titan Company Ltd”

CSR

“ Corporate Social Responsibility of ITC”

Submitted in partial fulfillment for the award of the degree of

MASTER OF MANAGEMENT STUDIES
UNIVERSITY OF MUMBAI

Submitted by
Ms. AKANSHA MAHENDRA TIWARI
ROLL NO. 22170
2022-2024
Under The Guidance of
Dr. GIRISH B PAWAR

SWAYAM SIDDHI COLLEGE OF MANAGEMENT & RESEARCH

BHIWANDI
(Affiliated to Universityof Mumbai, Approved by AICTE &Recognized byGovt. of Maharashtra) ( DTE Code: MB
3133) (An ISO 9001 – 2000 Certified Institute)
 CERTIFICATE

This is to certify that the project titled

“AWAERNESS OF MUDRA YOJANA TO AMONG PEOPLE IN AMBARNATH”,

“An Analytical Study on the Financial Statements of Titan Company Ltd”,

“Corporate Social Responsibility of ITC”

is successfully completed by Ms. AKANSHA MAHENDRA TIWARI during the IV Semester, in

partial fulfillment of the Master’s Degree in Management Studies recognized by the University of
Mumbai for the academic year 2022 – 2024. This project work is original and not submitted earlier
for the award of any degree, diploma or associateship of any other University / Institution.

Date:

DR. SAMADHAN KHAMKAR Dr.GIRISH B PAWAR

(DIRECTOR) (PROJECT GUIDE)

External Examiner
 DECLARATION

I hereby declare that this project report submitted by me to the partial fulfillment of the requirement
for the award of MASTER OF MANAGEMENT STUDIES (MMS) of the University of Mumbai
is a Bonafede work undertaken by me and it is not submitted to any other University or Institution
for the award of any degree, diploma/ certificate or published any time before.

Name:

Roll No. 22170 Signature of the student

(AKANSHA MAHENDRA TIWARI)

 ACKNOWLEDGEMENT

This project has been a great learning experience for me. I take this opportunity to thank

Dr.GIRISH B PAWAR, my internal project guide whose valuable guidance &

suggestions made this project possible. I am extremely thankful to her for her

support. She has encouraged me and channelized my enthusiasm effectively.

I express my heart-felt gratitude towards my parents, siblings and all those friends who have willingly
and with utmost commitment helped me during the course of my project work.

I also express my profound gratitude to DR. SAMADHAN KHAMKAR, Director of Swayam Siddhi
College of Management & Research for giving me the opportunity to work on the project and broaden
my knowledge and experience.

I would like to thank all the professors and the staff of SSCMR especially the library staff who were
very helpful in providing books and articles I needed for my project.

Last but not the least, I am thankful to all those who indirectly extended their co-operation and
invaluable support to me.
 GENERAL MANAGEMENT PROJECT

“AWAERNESS OF MUDRA YOJANA TO AMONG PEOPLE IN AMBARNATH”

 EXECUTIVE SUMMARY of General Management Project

This executive summary outlines strategies to increase awareness of the Mudra Yojana
among the residents of Ambarnath. The Mudra Yojana is a government initiative aimed at
providing financial assistance to small businesses and entrepreneurs. The lack of awareness
about this scheme among the local populace has led to underutilization of its benefits.

To address this issue, the proposed plan focuses on several key areas. Firstly, leveraging digital
platforms such as social media, websites, and mobile apps to disseminate information about
the Mudra Yojana. Secondly, organizing awareness campaigns, workshops, and seminars in
Ambarnath to educate people about the scheme's benefits and application process. Thirdly,
collaborating with local banks and financial institutions to streamline the loan approval
process and provide personalized assistance to applicants.

By implementing these strategies, we aim to significantly increase awareness and

participation in the Mudra Yojana among the people of Ambarnath, thereby empowering
small businesses and fostering economic growth in the region.

6
 INDEX

S.NO. CONENT PAGES

NO.

ABSTRACT
1. CHAPTER - 1
Introduction of MUDRA YOJANA Micro
financing meaning
Mission , Vision , Purpose Role
& Monitoring of MUDRA 1 - 26
Management of MUDRA YOJANA Product
& Service of MUDRA YOJANA Purpose of
MUDRA loan
Report card of MUDRA

2. CHAPTER - 2
Research Methodology
Objective of Study
Research Design Sampling
Design 27 - 30
Data Collection Need
of Study Scope of
Study Limitation of
Study
Analysis Tool

3. CHAPTER - 3
Review Of Literature 31 - 35
4. CHAPTER - 4
Data Interpretation & Analysis 36 - 53
5. CHAPTER - 5
Suggestions, finding & Conclusion 54 - 58
Bibliography 59 - 61

Webliography 62

Annexure 7 63 - 66
Abstract:

Pradhan Mantri MUDRA Yojana is a flagship scheme launched by Government of

India in 2015 in order to provide financial assistance to the micro and small scale
entrepreneurs. The main objective of this paper is to provide a comprehensive
evaluation of the MUDRA scheme since its inception. This study is based on
secondary data which has been gathered from the website of MUDRA and its annual
reports. Through the analysis of data, it is observed that there is a substantial rise in
the disbursement amount since its establishment. The result also indicated that there is
a just a nominal difference in the amount of loan sanctioned and disbursement. This
paper also emphasize on the overview of Pradhan Mantri MUDRA Yojana in
different states and overall performance by all the institutions. On the basis of
sanctioned amount in the past three financial years, a comparative performance of top
10 states revealed that state Tamil Nadu topped the list closely followed by
Karnataka. Further, in terms of percentage change in the disbursement amount from
financial year 2017-18 to 2018-19, the results revealed that among these states, Bihar
has displayed highest percentage growth followed by Odisha. Furthermore, public
sector banks stood topper, in terms of the sanctioned amount for the financial year
2018-19, followed by private sector banks. However, in terms of target achievements,
Non-Banking Finance Companies over-achieved their targets with 147% followed by
Small Finance Banks with 119%.

8
 CHAPTER – 1

INTRODUCTION

1
 INTRODUCTION

Mudra Yojana:-

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India

to “fund the unfunded” by bringing such enterprises to the formal financial system and
extending affordable credit to them. It enables a small borrower to borrow from all
Public Sector Banks such as PSU Banks, Regional Rural Banks and Cooperative Banks,
Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non-
Banking Finance Companies (NBFC) for loans up to Rs 10 lakhs for non-farm income
generating activities. The scheme was launched on 8th April, 2015 by the Hon'ble Prime
Minister.

Micro Units Development and Refinance Agency Bank:-

Micro Units Development and Refinance Agency Bank (or MUDRA Bank) is a public
sector financial institution in India. It provides loans at low rates to micro-finance
institutions and non-banking financial institutions which then provide credit to MSMEs.
It was launched by Prime Minister Narendra Modi on 8 April 2015.

The formation of the agency was initially announced in the 2015 Union budget of
India in February 2015. It was formally launched on 8 April.

The MUDRA banks were set up under the Pradhan Mantri MUDRA Yojana scheme. It
will provide its services to small entrepreneurs outside the service area of regular banks,
by using last mile agents. About 5.77 crore (57.6 million) small business have been
identified as target clients using the NSSO survey of 2013. Only 4% of these businesses
get finance from regular banks. The bank will also ensure that its clients do not fall into
indebtedness and will lend responsibly.

MUDRA has been initially formed as a wholly owned subsidiary of Small Industries
Development bank of India (SIDBI) with 100% capital being contributed by it.
Presently, the authorized capital of MUDRA is 1000 crores and paid up capital is 750

2
crore, fully subscribed by SIDBI.] More capital is expected to enhance the functioning
of MUDRA.

This Agency would be responsible for developing and refinancing all Micro-enterprises
sector by supporting the finance Institutions which are in the business of lending to
micro / small business entities engaged in manufacturing, trading and service activities.
MUDRA would partner with Banks, MFIs and other lending institutions at state level /
regional level to provide micro finance support to the micro enterprise sector in the
country.

Micro Financing:-

Micro Finance is an economic development tool whose objective is to provide income

generating opportunities to the people at the bottom of the pyramid. It covers a range
of services which include, in addition to the provision of credit, many other credit plus
services, financial literacy and other social support services.

MUDRA vision:-

To be an integrated financial and support services provider par excellence,

benchmarked with global best practices and standards, for the bottom of the pyramid
universe for their comprehensive economic and social development.

MUDRA Mission:-

To create an inclusive, sustainable and value based entrepreneurial culture, in

collaboration with our partner institutions in achieving economic success and financial
security.

3
MUDRA Purpose:-
Mudra loan is extended for a variety of purposes which provides income generation and
employment creation in Manufacturing, Services, Retail and Agri. Allied Activities.
Our basic purpose is to attain development in an inclusive and sustainable manner by
supporting and promoting partner institutions and creating an ecosystem of growth for
micro enterprises sector.

The Genesis of MUDRA:-

The Union Budget presented by the Hon'ble Finance Minister Shri Arun Jaitley, for FY
2015-16, announced the formation of MUDRA Bank. Accordingly MUDRA was
registered as a Company in March 2015 under the Companies Act 2013 and as a Non-
Banking Finance Institution with the RBI on 07 April 2015. MUDRA was launched by
the Hon'ble Prime Minister Shri Narendra Modi on 08 April 2015 at a function held at
Vigyan Bhawan, New Delhi.

Roles and Responsibilities of MUDRA:-

MUDRA has been formed with primary objective of developing the micro enterprise
sector in the country by extending various support including financial support in the

4
form of refinance, so as to achieve the goal of funding the unfunding. The GOI Press
release of 2 March 2015 has laid down the roles and responsibilities of MUDRA.
Subsequently GOI has also decided that MUDRA will provide refinance support,
monitor the PMMY data by managing the web portal, facilitate offering guarantees for
loans granted under PMMY and take up other activities assigned to it from time to time.
Accordingly MUDRA has been carrying out these functions over the last one year.

Monitoring of MUDRA YOJANA:-

Pradhan Mantri Mudra Yojana (PMMY) was launched along with the launching of
MUDRA on 08 April 2015 and the detailed guidelines were issued by Government of
India to all banks and MFIs. MUDRA was given the responsibility of monitoring the
programme by collecting the information on regular basis. Accordingly, MUDRA has
put in place a monitoring portal which captures the data on lending under PMMY, in a
granular fashion

5
 Management of MUDRA:-
Shri Vinay Hedaoo –

Shri Vinay Hedaoo joined as Managing Director & Chief Executive Officer, Micro
Units Development & Refinance Agency Limited (MUDRA) from 2nd August 2021.
Before joining MUDRA, he was the Chief General Manager of Small Industries
Development Bank of India (SIDBI).

He has experience of more than 30 years in IDBI and SIDBI across different verticals
covering areas of Development banking, Branch Management, Credit, Recovery,
Audit, Risk Management, Premises, Board, etc

He worked as the Regional In-charge of Lucknow Region of SIDBI as also as

Chairman/Member of various Credit and other Committees. He served as the Chief
Operating Officer of India SME Asset Reconstruction Company (ISARC) and the Chief
Executive Officer and Whole Time Director of National Credit Guarantee Trustee
Company Ltd. (NCGTC).

He is a Bachelor in Textile Technology from V J T I, Mumbai and holds a Diploma in

Textile Engineering from Indian Institute of Technology, New Delhi. He is also a
Certified Associate of the Indian Institute of Bankers.

6
Shri Sivasubramanian Ramann - Chairman

Shri S. Ramann, belongs to 1991 batch of Indian Audit & Accounts Service (IA&AS).
He joined as Chairman & Managing Director, Small Industries Development Bank of
India (SIDBI) from 19th April 2021. Before joining SIDBI, he was MD & CEO of
National E-Governance Services Limited (NeSL) from December 2016. Prior to joining
NeSL, Mr. Ramann was the Principal Accountant General (Audit), Jharkhand, Ranchi
during 2015-2016. He worked with SEBI as CGM and later Executive Director between
2007 & 2013.

He held various positions in the offices under the C&AG of India in various States and
also worked as Executive Secretary to the C&AG of India. He worked as First
Secretary, at Indian High Commission, London for auditing the accounts of various
Indian Embassies in Europe. He is BA (Hons) Economics from St Stephens College
and MBA from FMS, Delhi University. He has done M. Sc. in Regulations from
London School of Economics and Certified Internal Auditor from IIA Florida. He
completed LLB from Mumbai University and Post Graduate Diploma in Securities
Law.

7
Ms. Smita Affinwalla - Independent Director:-

Ms. Smita Affinwalla, an Economics Graduate

and MBA, is the Founder and Managing
Director of Illuminos Consulting Private
Limited, a consulting firm focussed on
enhancing organisational and individual
performance through the development of
human capability using Neuroscience. She also consults in the space of Leadership
evaluation and succession as well as building Purposeful organisations and leaders.

Ms. Smita has served as an Independent Director on the Boards of prestigious

institutions viz., HDB Financial Services Limited, Prime Securities and SICOM where
she has been a Chair/ Member of various Board Committees. Ms. Smita is a member
of the Industry Advisory Committee of the Indian Institute of Management, Indore and
a member of the National Network for Human Resources (NHRD) Mumbai Chapter.
She was previously the Co- Chairperson, HR Committee, and Indian Merchants’
Chamber. Ms. Smita has served as a Senior Fellow, Human Capital with The
Conference Board, and USA from 2013 to 2018.

During her career of over 34 years she has worked in the fields of Financial Services
and Human Resources. In the field of Finance she has worked on setting up and growth
of businesses in Retail as well as Wholesale sectors and as a consultant she has helped
her clients to structure and raise capital, through both debt and equity instruments. On
the other side, in the field of HR, Ms. Smita set up and ran the BFSI SBU for the
erstwhile Hewitt Associates (now Aon) in the Talent and Organisational Consulting
practice where she managed large HR & OD consulting projects in the BFSI sector both
in India as well as South East Asia and the Middle East. Ms. Smita has served also as
Head of Consulting with Development Dimensions International (DDI) India and as
Group Director HR&OD for Motilal Oswal Financial Services Limited.

8
Jyotsna Sitling – IFS

Jyotsna Sitling is the first female tribal Indian Forest Service officer of India. With a
career of institutional entrepreneur, she has created participatory institutions, policies,
instruments and programs in areas like biodiversity, poverty, gender, livelihoods,
watershed, agribusiness, entrepreneurship and skills. During this work, she has handled
government projects and multilateral/bilateral projects with WFP, European Union
(EU), GIZ, IFAD, IDRC, ICIMOD, UNESCO and World Bank. She continues to work
passionately at the intersection of market, equity and environment. Presently, she is
working on ecosystem for social enterprises in India. Ms. Sitling is IIM Bangalore
alumnus and is a recipient of Indira Gandhi Paryavaran Puraskar 2004-05 and Prime
Minister’s Award for Excellence in Public Administration 2006-07 for her outstanding
contribution to the public service of the country

9
Shri V Satya Venkata Rao–

Mr. V Satya Venkata Rao has more than 29 years of working experience in two All
India Financial Institutions. He is a Post Graduate in Law with distinction of securing
a Gold Medal from Andhra University in Masters of Law. He has handled several
critical matters in areas such as Legal, Human Resource, Corporate Communications,
etc. Shri Rao has participated in International Conferences in London and Beijing. He
has spent considerable time in the areas of legal matters with special emphasis on
recovery through legal route and has been successful in resolution of huge NPAs.

Mr. Rao has functioned as a Nominee Director on the Boards of several listed and non-
listed Companies. He has also served as a Director on the Boards of Venture Capital
Real Estate Companies and Societies registered under the Societies Registration Act.

10
Shri Sudatta Mandal - Deputy Managing Director

He joined as Deputy Managing Director, Small Industries Development Bank of India

(SIDBI) on 3rd May 2021. Before joining SIDBI, he was the Chief General Manager
& Chief Financial Officer of the Export-Import Bank of India (Exim Bank).

He has experience of more than 25 years across different verticals (Assets, Liabilities,
Risk Management, Compliance and Strategy) in Exim Bank including more than 20
years of operational experience in International Trade and Investment Finance, Project
Finance, SME lending including Cluster Finance, Trade Finance, and cross-border
Development Finance.

He is a B-Tech. in Electrical Engineering from the Indian Institute of Technology,

Kanpur, and holds a Post Graduate Diploma in Management with specialisation in
Finance from the Indian Institute of Management, Calcutta.

11
SHRI MUKESH KUMAR BANSAL –

Sh. Mukesh Kumar Bansal is an officer of Indian Administrative Service (2005 batch).
He is presently working as Joint Secretary in the Department of Financial Services,
Ministry of Finance, and Government of India.

Sh. Bansal is a Commerce graduate and also an MBA from the Sloan School of
Management, Massachusetts Institute of Technology, USA. He has also completed his
MA Economics from IGNOU.

Prior to his posting as Joint Secretary, Department of Financial Services, Ministry of

Finance in October, 2022 he worked as Private Secretary to Hon'ble Minister of
Agriculture and Farmers Welfare, Govt of India, from March, 2020 to October, 2022).

Before being deputed to the Government of India, Sh. Bansal held various key positions
in his Cadre State of Chhattisgarh. He had worked as CEO. Zila Panchayat, North
Bastar Kanker; Commissioner Municipal Corporation, Bilaspur. He worked as
Collector & District Magistrate in three districts namely Kabirdham, Raigarh &
Rajnandgaon from 2011 to 2017. He was Special Secretary to Honble Chief Minister
Chhattisgarh from 2017 to 2018 and at that time he also held additional post of CEO,
Naya Raipur Development Authority. He had also worked in different departments
namely Agriculture, Tribal Development, an

12
Shri S V Sastry - Independent Director

Shri S V Sastry, a graduate in Science from Government College, Anantapur (Andhra

Pradesh) joined State Bank of India as a Probationary Officer on 01st October 1985.
He retired from the services of the Bank on 30th September 2022 as Deputy Managing
Director (Global Markets). During his career spanning 37 years, Shri Sastry held
various assignments in the Bank-both in India and abroad.

After his initial banking stint in the North East at various Branches including as Branch
Manager, he worked as a forex dealer between 1996 and 2003 in Mumbai. He held the
position of Chief Dealer at SBI Frankfurt and Chief Dealer at SBI London between
2003 and 2008. As Deputy General Manager (Treasury Management Group) at the
Bank’s Corporate Office in Mumbai, he was overseeing treasury operations of overseas
offices between 2008 and 2011. As General Manager (Network II) in Ahmadabad
Circle he was leading retail operations of around 400 branches. As General Manager
(Forex) at the Banks’ Corporate Office in Mumbai he was overseeing the forex
operations of domestic offices

Shri Sastry was MD & CEO of SBI DFHI Ltd., a subsidiary of the Bank and a
Standalone Primary Dealer between November 2017 and May 2020. Thereafter he
moved to head the domestic treasury operations of State Bank of India as DMD (Global
Markets).

Shri Sastry was Chairman of FIMMDA between July 2020 and September 2022,
wherein he had opportunities to interact with officials of RBI on a regular basis. For a
major portion of his career in the Bank, he was associated with the markets both forex
as well as Rupee.

13
Product & Services of Mudra Yojana:-

Micro Units Development and Refinance Agency Ltd. [MUDRA] is an NBFC

supporting development of micro enterprise sector in the country. MUDRA provides
refinance support to Banks / MFIs / NBFCs for lending to micro units having loan
requirement up to 10 lakhs. MUDRA provides refinance support to micro business
under the Scheme of Pradhan Mantri MUDRA Yojana. The other products are for
development support to the sector. The bouquet of offerings of MUDRA is depicted
below. The offerings are being targeted across the spectrum of beneficiary segments.

Pradhan Mantri MUDRA Yojana (PMMY):-

Under the aegis of Pradhan Mantri Mudra Yojana (PMMY), MUDRA has created
products/ schemes. The interventions have been named 'Shishu', 'Kishore' and 'Tarun'
to signify the stage of growth / development and funding needs of the beneficiary micro
unit / entrepreneur and also provide a reference point for the next phase of graduation /
growth to look forward to :

 Shishu : covering loans up to 50,000/-

 Kishor : covering loans above 50,000/- and up to 5 lakhs

 Tarun : covering loans above 5 lakhs and up to 10 lakhs

14
With an objective to promote entrepreneurship among the new generation aspiring
youth, it is ensured that more focus is given to Shishu Category Units and then Kishore
and Tarun categories.

Within the framework and overall objective of development and growth of micro
enterprises sector under Shishu, Kishore and Tarun, the products being offered by
MUDRA are so designed, to meet requirements of different sectors / business activities
as well as business/ entrepreneur segments.

The funding supports from MUDRA are of two types:

 Micro Credit Scheme (MCS) for loans up to 1 lakhs finance through MFIs.

 Refinance Scheme for Commercial Banks / Regional Rural Banks (RRBs) /

Small Finance Banks / Non-Banking Financial Companies (NBFCs

Micro Credit Scheme:

Micro Credit Scheme is offered mainly through Micro Finance Institutions (MFIs), who
deliver the credit up to 1 lakh, for various micro enterprise / small business activities.
Although the model of delivery may be through SHGs/JLGs/ Individuals, the loans are
given by the MFIs to individual entrepreneurs for specific income generating micro
enterprise/ small business activities.

Refinance Scheme for Banks/NBFCs:

Different banks like Commercial Banks, Regional Rural Banks, Small Finance Banks
and NBFCs are eligible to avail of refinance support from MUDRA for financing micro
enterprise activities. The refinance is available for term loan and working capital loan
up to an amount of 10 lakh per unit. The eligible banks/NBFC, who comply to the
requirements as notified, can avail of refinance from MUDRA for the loans given by
them for eligible MUDRA compliant activities under Shishu, Kishore and Tarun
categories. In order to encourage women entrepreneurs, the financing banks / MFIs may
consider extending additional facilities, including interest reduction on their loan. At
present, MUDRA extends a reduction of 25bps in its interest rates to MFIs / NBFCs,
who are providing loans to women entrepreneurs.

15
MUDRA Card:-

MUDRA Card is a debit card issued against the MUDRA loan account, for working
capital portion of the loan. The borrower can make use of MUDRA Card in multiple
drawals and credits, so as to manage the working capital limit in cost-efficient manner
and keep the interest burden minimum. MUDRA Card also helps in digitalization of
MUDRA transactions and creating credit history for the borrower. MUDRA Card can
be operated across the country for withdrawal of cash from any ATM / micro ATM and
also make payment through any ‘Point of Sale’ machine

The aim of this scheme is to attain development in a sustainable manner by supporting

partner institutions and promoting the growth of the micro-enterprise sector. The
MUDRA card can be used to make multiple withdrawals and avail credits to manage
the working capital limit in an efficient and productive manner. This helps to reduce
the burden of interest payments. Cardholders can also avail exclusive merchant offers
at the time of purchase.

Development and Promotional Support:-

Besides the credit constraints, the Non Corporate Small Business (NCSBS) face many
non-credit challenges, like,

 Skill Development Gaps

 Knowledge Gaps

16
  Information Asymmetry
 Financial / Business Literacy
 Lack of growth orientation

To address these constraints, MUDRA plans to adopt a credit- plus approach in future
and offer Developmental and Support services to the target audience. It will act as a
market maker and build–up an ecosystem with capacities to deliver value in an efficient
and sustainable manner.Development and Promotional Support :-

Imparting Financial / Business Literacy:-

Financial / business literacy or financial education can broadly be defined as 'providing

familiarity with and understanding of financial market products, especially rewards and
risks, in order to make informed choices.'

Financial Inclusion and Financial / business Literacy are twin pillars. While Financial
Inclusion acts from supply side providing the financial market / services that people
demand, Financial Literacy stimulates the demand side – making people aware of what
they can demand. Supporting the financial literacy drive will contribute substantially
from the demand side to the national agenda of financial inclusion.

To address these constraints, MUDRA will adopt a credit- plus approach and offer
Developmental and Support services to the target audience. It will act as a market maker
and build –up an ecosystem with capacities to deliver value in an efficient and
sustainable manner. This apart, the micro enterprise segment also needs business
literacy which will help them in acquiring knowledge on running / managing business,
keeping accounts, working out ratios, etc.

17
Portfolio Credit Guarantee:-

Traditional institutional financing in Indian context adopts an Asset Based Lending

Approach with emphasis on collateral security. Micro units, most of the times, are
unable to provide the comfort of collateral. Hence, MUDRA loans, i.e., loans up to 10
lakh, have been made collateral free, as per the RBI norms in this regard.
To mitigate the issue of collateral and to provide comfort to the lending institutions, a
Credit Guarantee Product is extended by creation of a Fund called “Credit Guarantee
Fund for Micro Units” [CGFMU]. All eligible micro-loans sanctioned since April 08,
2015 are covered under the above guarantee. The Scheme is being managed by National
Credit Guarantee Trustee Company Ltd. [NCGTC], an agency promoted by the GOI.
The Guarantee product is one of the key interventions made with the objective of
bringing down the cost of funds and facilitating ease of access to institutional credit for
the end beneficiary to improve his creditworthiness.

18
Promotion and Support of Grass Root Institutions:-

One of the major focus areas will be to formalize and institutionalize the last mile
financiers / grass root institutions so that a new category of financial institutions viz.
Small Business Finance Companies can be created and ecosystem developed for their
growth.
Rural innovations at micro enterprise / unit level would also be one of the key areas for
intervention and support. Support to Micro units by way of the facility of incubators
would be taken up. This would ensure that at the most grass root levels in the country,
there is climate for promotion of innovation as well as incubation of ideas from
educated rural youths which would germinate in viable micro enterprises.

Working with Credit Bureaus:-

With the growth of responsible lending practices, Credit Bureaus (CB) have gained
increasing level of acceptability in the micro finance sector. The CB culture will help
in creating credit history over a period of time which will facilitate faster credit
dispensation as the system evolves.

Working with Rating Agencies:-

Accreditation / rating of MFI entities is one of the roles earmarked for MUDRA.
Further, a segment of financial intermediaries for the non-corporate small business
sector is envisaged to emerge in the financing architecture. MUDRA would work in
coordination with Rating Agencies so that appropriate rating framework(s) which take
into account sector specific features are devised for various sector participants. In the
longer run, availability of rating for sector participants would facilitate formalization
and further flow of capital to the sector.

Creation of Framework for "Small Business Finance Entities”:-

An enabling framework for support to "Small Business Finance Entities" would be

created leading to formalization of the economy which is presently included in the
informal sector.

19
Synergies with “Make in India” Campaign:-

Government of India has initiated several steps for encouraging enterprise creation in
our country. The major one is “Make in India” movement. Make in India is a major
national programme designed to facilitate investment, foster innovation, enhance skill
development, project intellectual property and build best in class manufacturing
infrastructure. This coupled with Start-up India and Stand-up India campaign, has
created a conducive environment of enterprise creation in different scales. MUDRA,
being an initiative for promoting micro enterprises, fits well with Make in India
initiative for supporting these micro enterprises.

Synergies with National Rural Livelihoods Mission / National Urban Livelihood

Mission:-

The National Rural Livelihoods Mission [NRLM] is set up "To reduce poverty by
enabling the poor households to access gainful self-employment and skilled wage
employment opportunities, resulting in appreciable improvement in their livelihoods on
a sustainable basis, through building strong grassroots institutions of the poor." To
achieve the above, NRLM Mission inter alia follows a demand driven strategy for
continuous capacity building, imparting requisite skills and creating linkages with
livelihood opportunities for the poor, including those emerging in the organized sector.

Similarly, the Deendayal Antodaya Yojana [DAY] National Urban Livelihood

Mission is another programme which is aimed at reducing urban poverty through
creation of micro enterprises, individually and group mode.

MUDRA, being an initiative for promoting micro enterprises, would make all efforts
to draw synergies between NRLM, NULM and MUDRA interventions for supporting
micro enterprises and creating sustainable livelihood opportunities for the poor.

Synergies with National Skill Development Corporation:-

NSDC is already engaged in the process of skill development at a National scale.

Synergizing with NSDC will help MUDRA in augmenting the skill sets of the sectoral
players.

20
The MUDRA Pricing:-

Access to finance is critical and equally critical is the cost of finance to the
NCSB/ultimate beneficiary. The funds mobilized by micro units from the informal
sources are at a high cost. There is scope for cost rationalization. However, the
rationalization is intricately linked with the cost of funds for the last mile MFIs.

GOI while announcing the formation of MUDRA also announced a refinance corpus
for MUDRA to be allocated by RBI from the Priority Sector lending shortfall.
Accordingly, RBI has provided the allocation which helps in bringing down the cost of
lending at the ultimate borrower level as MUDRA refinance will reduce the average
borrowing cost of the lending institutions

The NBFC-MFIs are presently regulated by Reserve Bank of India and RBI has already
prescribed detailed guidelines for margin cap in respect of MFIs. The margin cap has
been pegged at 10% for MFIs having loan portfolio of more than 100 crore and 12%
for smaller MFIs having loan portfolio of less than 100 crore or 2.75 times the average
base rate of five major commercial banks, whichever is less. In the backdrop of these
guidelines and the fact that MFI sector has been constantly trying to reduce its costs,
MUDRA would also help MFIs reduce their cost to bring down the overall cost to the
end beneficiaries. Further, at the time of appraisal, MUDRA would be studying /
assessing individual MFIs on this as well as other related parameters and suitably price
its assistance based on such assessment.
In the case of Banks, RBI has also put a cap on the interest rate at Base rate/ MCLR for
lending micro units by Commercial Banks by availing of MUDRA refinance. Similarly,
the RRBs have been given an interest cap of 3.50% over and above MUDRA refinance
rate, while lending a PMMY loan by availing of MUDRA refinance.
In case of NBFCs, RBI has also stipulated an interest cap of 6% over and above
MUDRA refinance while their lending to MUDRA segment.
All these are expected to have a positive impact on the pricing of MUDRA loans in the
country whereby the Micro enterprises will be able to avail of credit at an affordable
interest rate. But, the first and foremost objective is to ensure accessibility of credit.

21
Purpose of MUDRA loan:-

Mudra loan is extended for a variety of purposes which result in income generation and
employment creation. The loans are extended mainly for:
 Business loan for Vendors, Traders, Shopkeepers and other Service Sector
activities
 Working capital loan through MUDRA Cards
 Equipment Finance for Micro Units
 Transport Vehicle loans – for commercial use only
 Loans for agri-allied non-farm income generating activities.
 Tractors, tillers as well as two wheelers used for commercial purposes only.

 Following is an illustrative list of the activities that can be covered under

MUDRA loans:-

1) Transport Vehicle

Purchase of transport vehicles for transportation of goods and passengers such as auto
rickshaws, small goods transport vehicles, 3 wheelers, e-rickshaws, taxis, etc.
Tractors/Tractor Trolleys/Power Tillers used only for commercial purposes are also
eligible for assistance under PMMY. Two Wheelers used for commercial purposes are
also eligible for coverage under PMMY.

2) Community, Social & Personal Service Activities

Salons, beauty parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and
motorcycle repair shops, DTP and Photocopying Facilities, Medicine Shops, Courier
Agents, etc.

3) Food Products Sector

Activities such as papad making, achaar making, jam/jelly making, agricultural produce
preservation at rural level, sweet shops, small service food stalls and day to day catering
/ canteen services, cold chain vehicles, cold storages, ice making units, ice cream
making units, biscuit, bread and bun making, etc.

4) Textile Products Sector / Activity

22
Handloom, power loom, khadi activity, chikan work, zari and zardozi work, traditional
embroidery and hand work, traditional dyeing and printing, apparel design, knitting,
cotton ginning, computerized embroidery, stitching and other textile non garment
products such as bags, vehicle accessories, furnishing accessories, etc.

5) Business loans for Traders and Shopkeepers

Financial support for on lending to individuals for running their shops / trading &
business activities / service enterprises and non-farm income generating activities with
beneficiary loan size of up to 10 lakhs per enterprise / borrower.

6) Equipment Finance Scheme for Micro Units

Setting up micro enterprises by purchasing necessary machinery / equipments with per

beneficiary loan size of up to 10 lakhs.

7) Activities allied to agriculture

'Activities allied to agriculture', e.g. pisciculture, bee keeping, poultry, livestock-

rearing, grading, sorting, aggregation agro industries, diary, fishery, agri-clinics and
agribusiness centres, food & agro-processing, etc.(excluding crop loans, land
improvement such as canal, irrigation and wells) and services supporting these, which
promote livelihood or are income generating shall be eligible for coverage under
PMMY in 2016-17.

 Financial institution shortlisted in MUDRA Yojana:-

MUDRA YOJANA

Non-Banking Cooperative Bank Banking Institutiuon

Financial Company
(NBFC)

23
Non-Banking Financial institution:-

Nonbank financial companies (NBFCs), also known as nonbank financial institutions

(NBFIs), are financial institutions that offer various banking services but do not have a
banking license. Generally, these institutions are not allowed to take traditional demand
deposits—readily available funds, such as those in checking or savings accounts—from
the public. This limitation keeps them outside the scope of conventional oversight from
federal and state financial regulators.

Nonbank financial companies fall under the oversight of the Dodd-Frank Wall Street
Reform and Consumer Protection Act, which describes them as companies
"predominantly engaged in a financial activity" when more than 85% of their
consolidated annual gross revenues or consolidated assets are financial in nature.
Examples of NBFCs include investment banks, mortgage lenders, money market funds,
insurance companies, hedge funds, private equity funds, and P2P lenders.

Cooperative Banks:-

A co-operative bank is a small-sized, financial entity, where its members are the owners
and customers of the Bank. They are regulated by the Reserve Bank of India (RBI) and
are registered under the States Cooperative Societies Act.

24
The Co-operative Banks have recently been in news after RBI’s restrictions on one of
the leading banks, where they were denied any kind of money withdrawal. This incident
of the Punjab and Maharashtra Co-operative Bank (PMC) has raised questions over the
reliability of such financial entities

Co-operative Banking has proved to be an asset in terms of acting as a financial

intermediary to agricultural and allied activities, small scale industries, and self-
employed workers.

Banking Institution:-

Banking financial institutions are in the business of taking deposits from the public and
making loans. In addition, they provide other services such as investment banking,
foreign exchange, and safe deposit boxes. These institutions are heavily regulated by
governments to protect consumers and ensure that the banking system is stable.

ReoBanking institutions include commercial banks, savings and loan associations, and
credit unions. Non-banking financial institutions include insurance companies, pension
funds, and hedge funds. So what sets these two groups apart? This article will discuss
the key differences between banking and non-banking financial institutions!

25
 Report Card of MUDRA Yojana: - Last 4 Years

26
.

CHAPTER - 2

RESEARCH METHODOLOGY

27
RESEARCH METHODOLOGY:-

Research Methodology is a way to systematically solve the research problem. The

Research Methodology includes the various methods and techniques for conducting a
research. Research is an art of scientific investigation. In other word research is a
scientific and systematic search for pertinent information on a specific topic. The logic
behind taking research methodology into consideration is that one can have knowledge
about the method and procedure adopted for achievement of objective of the project.
The present research Methodology consist the flowing things needs of the study, scope
of the study, objectives of the study, data collection, sample design and analysis
instrument. The detailed description is given under the flowing heads.

OBJECTIVES OF THE STUDY:-

1. To know the meaning of Mudra Yojana, vision, mission and purpose.

2. To study the who are eligible criteria for Mudra bank loan and document required
for Mudra loan.

RESEARCH DESIGNS:-

Research design is the conceptual structure within which research is conducted. It

constitutes the blueprint for collection, measurement and analysis of data was a
descriptive research. Descriptive research involves collecting numerical through self-
reports collected, through questionnaires or interviews (person or phone), or through
observation. For present study, the research was descriptive and conclusion oriented.

SAMPLING DESIGN:-

1. sampling unit - The target people must be defined that has to be sampled. The
sampling unit of research included that awareness toward Pradhan Mantri Mudra
Yojana in Ambarnath, Thane.

2. Sample size - This refers to number of respondents to be selected from the universe
to constitute a sample. The sample size of 70

28
SAMPLING TECHNIGUE:-

Convenience Sampling was used to select the sample. Convenient sampling is a non-
probability sampling technique that attempts to obtain a sample of convenient elements
In case of convenience sampling, the selection of sample depends upon the discretion
of the interviewer. In this project, Questionnaire Method was used for the collecting the
data. With the help of this method of collecting data, a sample survey was conducted.

DATA COLLECTION: -

Information has been collected from both Primary and Secondary Data.

⚫ Primary data: - Primary data are those which are fresh and are collected for the first
time, and thus happen to be original in character. The primary data was collected
through direct personal interviews (open ended and close ended questionnaires),
Observation Method, Interview Method and Scheduling Method etc.

⚫ Secondary data: - Secondary data are those which have already been collected by
someone else and which already had been passed through the statistical process. The
secondary data was collected through web sites, books and magazines etc.

For the present study purpose primary data is used. Primary data questionnaire method
is collected through questionnaire method. This questionnaire is self-administrated
questionnaire.

NEED OF THE STUDY:-

The government launched the MUDRA bank to ‘fund the unfunded’ small
entrepreneurs. The initiative aims to empower ~58 million small businesses in India
that account for just 4% institutional funding and employ >120 million people, many
of whom are from low-income families.

SCOPE OF THE STUDY:-

The scope of the study was limited to dist Ambarnath.

29
LIMITATIONS OF THE STUDY:-

Time constraints while collecting the secondary data. All the data’s cannot be
generalized.

ANALYSIS TOOLS:-

To analyze the data obtained with the help of questionnaire, following tools/instruments
were used. 1. Liker scale: These consist of a number of statements which express either
a favorable or unfavorable attitude towards the given object to which the respondents
are asked to react. The respondent responds to in terms of several degrees of satisfaction
or dissatisfaction.

2. Percentage and Pie Charts: These tools instruments were used for analysis of data.

Formula of Percentage Method

P: -Q/RX100

P: - Reading in percentage

Q: - Number of respondent bulling in the specific to the Measure

R: - Total number of respondent exit is the population as a wheel.

30
 CHAPTER – 3

REVIEW OF LITERATURER

31
REVIEW OF LITERATURER
1. R. Rupa (2017) has showed that the MUDRA scheme is very much successful in
Tamil Nadu. It is found that the MFIs have contributed substantially to increase the
number of accounts financed under the PMMY.

2. Verma S. (2015) has explained that the design of MUDRA scheme will not only
caters to the financial problems of MSMEs but also give moral support to a lot of young
population to become an entrepreneur.
3. Mehar L (2014) has showed that the financial inclusion in India has increased in the
last few years with new innovations like mobile banking, ultra small branches etc,

4. Dr. J. Venkatesh and MS. R. Lavanya Kumari (2017) has showed that besides the
schemes that are being introduced for the overall growth and development of the
MSME sector, initiatives have been launched which focus solely on entrepreneurs. The
schemes will contribute to the well-being of the individuals engaged in small scale
industries which will positively affect the progress of the whole economy.

5. Rudrawar, M. A. A. & Uttarwar, V. R. (2016) has explained that PMMY can bring
a desired transformation. If it will be applied properly at the bottom level it may act as
a game changing idea and boost the Indian economy. It should include less
documentation and easily accessible. In coming few years, MUDRA will play a crucial
role for the development of entrepreneurship, increase in GDP and development of
employment.

6. Roy, Anup Kumar (2016) has displayed that the small businesses are the foundation
of economic development. A major number of initiatives have been taken in the past
few years in the right direction

7. Mol S.TP (2014) has clarified that there are some issues like money related Illiteracy,
absence of mind fullness and client Securing is high. Reserve Bank of India has started
different activities to improved money related on side ration .Information and
communication technology offers the opportunities enhancement of financial inclusion.

8. Kumar S. (2017) explained the key objectives of Micro Units Development and
Refinance Agency (MUDRA) Scheme. In a developing country like India most of the

32
People are engaged in small businesses. Small businesses face financial problem as a
major problem on their way to development. After identifying the contribution of small
businesses in Indian economy, Government of India launched MUDRA Scheme to
overcome the financial problem. The main focus of MUDRA Scheme is to support
small businesses and entrepreneurs.

9. (Patil & Chaudhari, 2016) emphasized that scarcity of finance is the major obstacle
for small and micro business sector. To solve this problem, Government of India
launched MUDRA Scheme. Through this scheme, Government of India is supporting
small and young entrepreneurs. This scheme will be helpful in supporting small and
micro sector by proving financial assistance at reasonable rates.

10. (Gupta S., 2015) conceptualized that Pradhan Mantri Mudra Yojana (PMMY) was
launched with the aim of funding the unfunded. The problem in the path of Non-
Corporate Small Business Sector (NCSBS) is the scarcity of financial support. Through
PMMY Government of India is trying to bring the NCSBS in the formal banking
channel. It is set up for the development and refinancing activities relating to micro
units.

11. (Singh, 2018) focused on PMMY Scheme, present status of scheme and relevant
suggestions. The researcher explained that the major problem in the growth of Non-
Corporate Small Business Sector is the dearth of financial support from organized
sector. By providing financial support, MUDRA Banks are playing a crucial role in
improving standard of living, increasing job opportunities, increasing national income
and reducing poverty.

12. (February 2018, B.S.) Women entrepreneurs are facing so many problems like
marketing, decision-making, balancing personal and professional life, access to
credit, cut-throat competition, etc. and the government is addressing a few problems
to bring women to the mainstream as entrepreneurs, which contribute to their
development as well as economic development.

13. (Ajay Kumar) The study was conducted in Jammu and Kashmir to ascertain the
relationship between access to finance and the reduction of poverty, and it was found
to have a positive result. Mudra Yojana, which is access to credit for the unbanked, is
reducing poverty.

33
14. (Kumar, 2019). The main goal of Mudra Yojana is to fund the unfunded, and it is
having a positive impact because previously, the unregistered and informal sectors did
not have access to formal credit, but now they do thanks to this scheme. A study was
conducted in Maharashtra to review the Mudra Yojana and it was found that the share
of women in the Shishu category is 75% and the number of accounts opened by women
under this category is 95.78%.

15. Avani.T (2016) studied that how MUDRA Bank helps SMEs to grow. The study
also focused on role, responsibility and performance of MUDRA Bank in the state of
Kerala. This study concluded that just as banking the unbanked, MUDRA bank main
aim is funding the unfunded.

16. Gupta (2015) studied the concept, role, rational and responsibility of MUDRA
Yojana. The study also focused on offerings and functioning of MUDRA Bank. The
study concluded that MUDRA will be a catalyst towards mass entrepreneurship
development, employment generation and higher GDP growth.

17. Kumar (2017) studied the impact of MUDRA Yojana on financial inclusion. The
study also covered the products and objectives of MUDRA Bank. The study concluded
that the small businesses are form the foundation of the economic development needs
to be strengthened and supported.

18. (Godha & Nama, 2017) studied the impact of MUDRA on financial inclusion in
India. They opined that MUDRA has made a big impact in the field of microfinance
and has helped weaker sections and low-income groups in their funding needs. They
suggested that efforts must be made to increase the number of loan sanctions and proper
implementation of the scheme.

19. (Lall, 2018) studied the performance of MUDRA in the state of Uttarakhand.
The author found that demonetization and GST had slowed down the entrepreneurial
activities and the state which has caused a drop in the number of loan sanctions under
MUDRA. The author applauded the initiatives of the state government for organizing
camps and awareness programmes for the effective implementation of the programmes.

20. (Ruhela, Kumar, & Prakash, 2017) discussed about the existing MFI mechanism
and their loopholes in micro financing. They explored the possibilities that how
MUDRA would make a difference in micro financing and how MUDRA would be

34
helpful in regulating the MFIs, so that small business could meet their financial
requirement in a hassle-free manner.

21. (Gupta, Matho, & Dubey, 2017) opined that MUDRA will positively affect the
lives of entrepreneurs engaged in small businesses and also help in shaping the progress
of the economy as a whole. Researchers studied in detail about the performance,
opportunities and benefit of MUDRA and asserted that MUDRA has contributed
significantly to the progress of small business in Jharkhand.

22.(Bakshi & Chawla, 2016)“MUDRA Yojana- new wings for the growth of small
entrepreneurs”, written by Kaman Bakshi and Shilpa Chawla, relates to MFIs and how
they are regulated and the various policy guidelines by which it functions efficiently. It
can be concluded that this scheme that has come up in recent Times, has proven to be
helpful to the organisations and individuals who are poor in finance.

23. (Agarwal, 2017)“Pradhan Mantri MUDRA Yojana-a critical review”, written by

Manish Agarwal and Ritesh Dwivedi, it is noticed that this scheme has been bringing
in finance where it needs it the most, such as the weaker sections of the society,
unfunded population, etc. therefore, it is great initiative taken up by the government of
India. But since it is fairly a new scheme, there are still some things to be taken of.
These include extension of the minority sector, use of Mudra card, etc.

24. (Prakash & Devaki, 2018) “A study of MUDRA in Tamil Nadu” written by Mr.
Prakash, focuses on the various areas of Pradhan Mantra MUDRA Yojana, and analyses
its performance. It was noticed from the studies that the MUDRA scheme is helping to
boost up the small and micro scale industries. It would help aspiring entrepreneurs to
make their place in this competitive world. It will be a very useful tool in the early
stages of the growth of the economy and help converting it into a developed economy.

25. (Mahajan, 2018) “An analysis of performance and impact of MUDRA Yojana
under PMMY in the year 2016”, written by Mr. Mahajan, attempts to find the impact
of the scheme on the small business and small entrepreneurs. It has been noticed that
this has been well accepted in the financial sector of the economy. It would play a big
hand in bringing up the back word sections of the society as well.

35
 CHAPTER – 4

DATA INTERPRETATION & ANALYSIS

36
  Gender:

Sr.NO Gender Percentage

1 Male 39%
2 Female 61%
TOTAL 100%

Male Female

39%

61%

SOURCE: -Data collected through questionnaire method.

Interpretation:

From the above table it is clear that majority of the respondents that is 60% are male
whereas only 40%respondents are female. Thus it can be concluded that there is a
preponderance of male respondents over the females.

37
 Age:

Sr.NO. Age Percentage

1 Below 20 Years 53%
2 20-40 42%
3 40-50 5%
4 Above 50 Years 0%
TOTAL 100%

5%0%

Below 20 Years
42% 53%
20 - 40 Years
40 - 50 Years
Above 50 Years

SOURCE: -Data collected through questionnaire method.

Interpretation:

From the above table it is clear that 53% of the respondents are of age group of below
20, 20-40 are 41.9% and above 50 is 5.4% thus it can be concluded that there is a
majority of the respondents in the group of Above 20 Years of people i.e. 53%.

38
 Occupation:

Sr.No. Occupation percentage

1 GOVT. Employee 0%
2 Professional 0%
3 Business 0%
4 Student 84%
5 Employee 16%
TOTAL 100%

0%
16%

Government employee
Profesional
Business

84% Student
Employee

SOURCE: - Data collected through questionnaire method.

Interpretation:

From the above table it is clear that majority of the respondents that is 84% are student
which is closely followed by respondents who have Employee. Thus it can be conclude
that there is a majority of the respondents are Student whereas minority of the
respondents are Agriculture.

39
 Annual Income:

Sr.NO. Annual Income Percentage

1 Below Rs. 10,000 58%
2 Rs. 10,000 – 30,000 31%
3 Rs. 30,000 – 50,000 0%
4 Above Rs. 50,000 11%
TOTAL 100%

11%
0%

31%
58%

Below Rs. 10,000 10,000 - 30,000 30,000 - 50,000 Above Rs. 50,000

SOURCE: - Data collected through questionnaire method.

Interpretation:

From the above table is clear a majority of respondent have below Rs. 10,000 income
which is 58% of the total respondent and closely follow by 10,000-30,000 income
group. Thus it can be conclude that there is a majority of the respondents are below
Rs.10,000 income group whereas minority of the respondents are above Rs. 50,000
income group.

40
 Are you aware about Pradhan Mantri MUDRA Yojana (PMMY)

Sr.NO. Response Percentage

1 Yes 76%
2 No 24%
TOTAL 100%

Yes No
24%

76%

SOURCE: - Data collected through questionnaire method.

Interpretation:

From the above table and figure it is clear that majority of the respondent i.e. 76%
respondents say yes and 24`% respondents say no towards awareness about Pradhan
Mantri MUDRA Yojana (PMMYY).

41
 If yes, than tells me which year Pradhan Mantri MUDRA Yojana (PMMY)
was launch?

Sr.NO. Year Percentage

1 2014 13%
2 2015 63%
3 2016 12%
4 2017 12%
TOTAL 100%

2017
12%

2016
12%

2015
63%

2014
13%

0% 10% 20% 30% 40% 50% 60% 70%

SOURCE: - Data collected through questionnaire method.

Interpretation:

From the above table majority of respondent says which are a 14.70% PMMY is launch
in 2014, 64.70% PMMY is launch in 2015 &closely follow by 13.20% of respondent
which say PMMY launch in 2016. And 11.80% respondent are say PMMY was launch
in 2017.

42
 How did you come to know about Pradhan Mantri MUDRA Yojana (PMMY)?

Sr.NO. No. of Respondents Percentage

1 Friends & Relatives 42%
2 Advertisement & media 40%
3 Bank or Financial 15%
Institution
4 Other 3%
TOTAL 100%

ADVERTISMENT OR MEDIA 40%

BANK OR FINANCIAL
INSTITUTION 15%

FRIENDS & RELATIVES 42%

OTHER 3%

0% 10% 20% 30% 40% 50%

SOURCE:-Data collected through questionnaire method.

Interpretation:

In above table shows that, out of 50 respondent 38.90% come to know about PMMY
by advertisement &media 15.30% from bank or financial institution & 43.10% of the
respondent come to know about PMMY through friends & relatives and 4.20% of the
respondent come to know about PMMY through Other.

43
 Did you know about a main objective of Pradhan Mantri MUDRA Yojana
(PMMY)?

Sr.NO. Response Percentage

1 Yes 70%
2 No 30%
TOTAL 100%

Yes No

30%

70%

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table show, in out of 50 respondent, 70% respondents were knowing the
objective of PMMY and remaining 30% respondent were not aware about the objective
of PMMY.

44
 If yes, than tell me what is the main objectives of Pradhan Mantri MUDRA
Yojana (PMMY)?

Sr.No Response Percentage

1 Development of micro enterprise sector 46%
2 Refinance support 32%
3 Purchase of equipment & new technology 11%
4 Other 11%
TOTAL 100%

DEVELOPMENT OF MICRO ENTERPRISES

46%
SECTOR

REFINANCE SUPPORT 32%

PURCHASE OF EQUIPMENT & NEW

11%
TECHNOLOGY

OTHER 11%

0% 10% 20% 30% 40% 50%

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table, 47.80% respondent says development of micro enterprise is a main

objective of PMMY, 34.30% says refinancing support, 13.40% say purchase of
equipment & new technology for micro industry & 13.40% say other for micro industry.

45
 Did you know the maximum limit of loan under this scheme ?

Sr.No Response Percentage

1 Yes 59%
2 No 41%
Total 100%

41%

59% Yes
No

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table, there are out 50 respondent where 59% Respondent have know the limit
of taking loan under this scheme and 41% respondent have not know the limit of loan
.So be can conclude a minimum respondent have know the loan limit under PMMY.

46
 If yes, than tell me what is the maximum limit of loan under the Pradhan
Mantri MUDRA Yojana (PMMY)?

Sr.No. Loan amt. Percentage

1 Below Rs. 3,00,000 26%
2 3,00,000 -6,00,000 30%
3 6,00,000 – 8,00,000 18%
4 Above Rs. 8,00,000 26%
TOTAL 100%

BELOW RS. 3,00,000 26%

3,00,000 - 6,00,000 30%

6,00,000 - 8,00,000 18%

ABOVE RS. 8,00,000 26%

0% 5% 10% 15% 20% 25% 30% 35%

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table, 31.70% respondent have say Rs. 3,00,000 - 6,00,000 is maximum limit
followed by 27% respondent which say Below Rs.3,00,000 is a limit. 27% says Above
Rs. 8,00,000 and remaining 20.60% respondent says Rs.6,00,000 – 8,00,000 is a limit
of taking loan under this scheme. So be can conclude majority of respondent says
Rs.3,00,000 – 6,00,000 is a maximum limit of taking loan under PMMY.

47
 Pradhan Mantri MUDRA Yojana is beneficial for micro industry of country
give your response on the rating scale?

Sr.No Response Percentage

1 Strongly agree 19%
2 Agree 43%
3 Neutral 30%
4 Disagree 8%
5 Strongly disagree 0%
TOTAL 100%

50%

45%

40% 43%

35%

30%
30%
25%

20%
19%
15%

10%

5% 8%
0%
0%
Strongly agree Agree Neutral Disagree Strongly Disagree

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table out of 50 respondent 18.90% strongly agree, 43.20% respondent are
Agree, 31.10% respondent are Neutral, 8.10% respondent are Disagree and 0%
respondent are Strongly Disagree PMMY is beneficial for Micro industry. So be can
conclude majority of respondent Agree PMMY is beneficial for micro industry of
country.

48
 Pradhan Mantri MUDRA Yojana has helped to reduce the dependency on
informal financial institution?

Sr.No Response Percentage

1 Strongly agree 3%
2 Agree 30%
3 Neutral 37%
4 Disagree 15%
5 Strongly agree 15%
TOTAL 100%

37%

30%

15% 15%

3%

strongly agree Agree Neutral Disagree Strongly

Disagree

SOURCE:-Data collected through questionnaire method.

Interpretation:

In above table, out of 50 respondent 2.80% respondent are strongly agree, 30.60% are
agree and 37.50% respondent are neutral, 15.30% & 15.30% are disagree and strongly
disagree PMMY is reduce dependency on informal financial institution. So be can
conclude majority of respondent say PMMY is reduce a dependency on informal
financial institution

49
 Pradhan Mantri MUDRA Yojana is capable to provide employment in
country?

Sr.No. Response Percentage

1 Agree 47%
2 Neutral 42%
3 Disagree 7%
4 Strongly disagree 4%
TOTAL 100%

47%
42%

7%
4%

Agree Netural Disagree Strongly Disagree

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table out of 50 respondent 47.30% respondent are agree, 41.90% respondent
are neutral and 6.80% or 4.10% are disagree or Strongly Disagree toward PMMY is
capable for provide employment in country So be can conclude majority of respondent
agree toward PMMY is capable for provide employment in country.

50
 Pradhan Mantri MUDRA Yojana is an effective policy to measure or solve the
financial problem of micro industry of India?

Sr.No. Response Percentage

1 Strongly agree 1%
2 Agree 4%
3 Neutral 32%
4 Disagree 48%
5 Strongly disagree 15%
TOTAL 100%

Strongly
15%
Disagree

Disagree 48%

Neutral 32%

Agree' 4%

Strongly agree 1%

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table out of 50 respondent 48.60% agree, 15% strongly agree, 31.90 neutral,
4.20% disagree and 1.40% are strongly disagree toward PMMY is an effective policy
to measure or solve the financial problems of Micro industry of India. So be can say
majority of respondent are agree.

51
 Pradhan Mantri MUDRA Yojana is helpful in improving the country
economic growth?

Sr.No. Response Percentage

1 Agree 52%
2 Neutral 40%
3 Disagree 5%
4 Strongly Disagree 3%
TOTAL 100%

Strongly Disagree 3%

Disagree 5%

Neutral 40%

Agree 52%

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table out of 50 respondent 52.10% agree, 39.70% respondent are neutral, 15%
respondent are disagree and 3% are strongly disagree toward PMMY is helpful in
improving the country economic growth So majority of respondent think or agree
PMMY is helpful in growth of economy of country.

52
 There is need up pace the extant of awareness about this scheme?

Sr.No. Responses Percentage

1 Yes 82%
2 No 18%
TOTAL 100%

18%

Yes
No

82%

SOURCE: - Data collected through questionnaire method.

Interpretation:

So above table out of 50 respondent 82% says yes for pace the extant of awareness
about this scheme and 18% says no for pace the extant of awareness about this scheme.

53
 CHAPTER – 5

SUGGESTION, FINDING & CONCLUSION

54
SUGGESTION:-
Pradhan Mantri Mudra Yojana aim to empower every Indian and enable them to stand
on their own feet. The programmed recognizes the challenges faced by micro industry
and women entrepreneur in setting up enterprises, obtaining loans and other support
needed from time to time for succeeding in business The programme, therefore,
endeavors to create an ecosystem which facilitates and continues to provide a
supportive environment for doing business. The objective of the Pradhan Mantri Mudra
Yojana To be an integrated financial and support services provider par excellence
benchmarked with global best practices and standards for the bottom of the pyramid
universe for their comprehensive economic and social development.

The focus area, with regards to implementation of Pradhan Mantri Mudra Yojana is
listed below.

 Increasing loans sanctioned and disbursed by financial institutions.

 Connecting request of potential borrowers to the right handholding entities.
 Handholding events organized subsequent to sanction of loan. • Converging
Pradhan Mantri Mudra Yojana with existing schemes of govt. of India or state govt.
 Adopting innovation methods for implementation of scheme.
 Ensuring transparency and accountability in implementation of the scheme.
 Government should run awareness program for people's awareness of Pradhan
Mantri Mudra Yojana scheme.
 Pradhan Mantri Mudra Yojana should have separate plans for woman borrower.
 Essential to provide adequate training on planning, organizing, directing,
controlling of Marketing and finance

55
FINDING:

 From the above table it is clear that majority of the respondents that is 60% are
male where as only 40%respondents are female. Thus it can be concluded that
there is a preponderance of male respondents over the females.
 From the above table it is clear that 53% of the respondents are of age group of
below 20, 20-40 are 41.9% and above 50 is 5.4% thus it can be concluded that
there is a majority of the respondents in the group of Above 20 Years of people
i.e. 53%.
 From the above table it is clear that majority of the respondents that is 84% are
student which is closely followed by respondents who have Employee. Thus it
can be conclude that there is a majority of the respondents are Student where as
minority of the respondents are Agriculture
 From the above table is clear a majority of respondent have below Rs. 10,000
income which is 58% of the total respondent and closely follow by 10,000-
30,000 income group. Thus it can be conclude that there is a majority of the
respondents are below Rs.10,000 income group where as minority of the
respondents are above Rs. 50,000 income group.
 From the above table and figure it is clear that majority of the respondent i.e.
76% respondents say yes and 24`% respondents say no towards awareness about
Pradhan Mantri MUDRA Yojana (PMMYY).
 From the above table majority of respondent says which are a 14.70% PMMY
is launch in 2014, 64.70% PMMY is launch in 2015 &closely follow by 13.20%
of respondent which say PMMY launch in 2016. And 11.80% respondent are
say PMMY was launch in 2017.
 In above table shows that, out of 50 respondent 38.90% come to know about
PMMY by advertisement &media 15.30% from bank or financial institution &
43.10% of the respondent come to know about PMMY through friends &
relatives and 4.20% of the respondent come to know about PMMY through
Other.
 In above table show, in out of 50 respondents, 70% respondents were knowing
the objective of PMMY and remaining 30% respondent were not aware about
the objective of PMMY.
 In above table, 47.80% respondent says development of micro enterprise is a
main objective of PMMY, 34.30% says refinancing support, 13.40% say
purchase of equipment & new technology for micro industry & 13.40% say
other for micro industry
 In above table, there are out 50 respondent where 59% Respondent have know
the limit of taking loan under this scheme and 41% respondent have not know
the limit of loan .So be can conclude a minimum respondent have know the loan
limit under PMMY

56
 . In above table, 31.70% respondent have say Rs. 3,00,000 - 6,00,000 is
maximum limit followed by 27% respondent which say Below Rs.3,00,000 is a
limit. 27% says Above Rs. 8,00,000 and remaining 20.60% respondent says
Rs.6,00,000 – 8,00,000 is a limit of taking loan under this scheme. So be can
conclude majority of respondent says Rs.3,00,000 – 6,00,000 is a maximum
limit of taking loan under PMMY.
 In above table out of 50 respondent 18.90% strongly agree, 43.20% respondent
are Agree, 31.10% respondent are Neutral, 8.10% respondent are Disagree and
0% respondent are Strongly Disagree PMMY is beneficial for Micro industry.
So be can conclude majority of respondent Agree PMMY is beneficial for micro
industry of country.
 In above table, out of 50 respondent 2.80% respondent are strongly agree,
30.60% are agree and 37.50% respondent are neutral, 15.30% & 15.30% are
disagree and strongly disagree PMMY is reduce dependency on informal
financial institution. So be can conclude majority of respondent say PMMY is
reduce a dependency on informal financial institution
 In above table out of 50 respondent 47.30% respondent are agree, 41.90%
respondent are neutral and 6.80% or 4.10% are disagree or Strongly Disagree
toward PMMY is capable for provide employment in country So be can
conclude majority of respondent agree toward PMMY is capable for provide
employment in country.
 In above table out of 50 respondent 48.60% agree, 15% strongly agree, 31.90
neutral, 4.20% disagree and 1.40% are strongly disagree toward PMMY is an
effective policy to measure or solve the financial problems of Micro industry of
India. So be can say majority of respondent are agree.
 In above table out of 50 respondent 52.10% agree, 39.70% respondent are
neutral, 15% respondent are disagree and 3% are strongly disagree toward
PMMY is helpful in improving the country economic growth So majority of
respondent think or agree PMMY is helpful in growth of economy of country.
 So above table out of 50 respondent 82% says yes for pace the extant of
awareness about this scheme and 18% says no for pace the extant of awareness
about this scheme.

57
CONCLUSION:-

The study concluded that PMMY is a great initiative taken by the GOI. Due to it, there
is a big change in the area of micro finance. The scheme will help the weaker section,
low income group and unfunded population and also will increase the competition.
Financial inclusion through PMMY increases the opportunities for credit requirement
and refinance.

According my study mostly people are aware about Pradhan Mantri Mudra Yojana. In
study people's response is Pradhan Mantri Mudra Yojana capable to provide
employment in country. So MUDRA will provide refinance support for Micro Industry
Most people know about then process of taking a loan in Pradhan Mantri Mudra Yojana.
Therefore, the government has to bring awareness in potential Pradhan Mantri Mudra
Yojana through conducting awareness programmers, showing film slides, T.V
interview, panel discussion, seminars, workshops, and symposiums.

58
 BIBLIOGRAPHY

REFERENCE:
1. Kumar, S. (2017). Impact of Mudra Yojana on Financial Inclusion. 6th International
Conference on Recent Trends in Engineering, Science & Management, (pp. 861-865)

2. Gupta, S. (2015). MUDRA: Financial Inclusion of the Missing Middle. Indian

Journal of Applied Research, V (11), 277-279.

3. Patil, S. G., & Chaudhari, P. T. (2016). MUDRA Helping Hand to Non-Corporate

Small Business Sector (NCSBS). Splint International Journal of Professionals, III (3),
126-128.

4. Singh, K. R. (2018). Development of Micro, Small and Medium Enterprises through

MUDRA Loans with Special Reference to Manipur. Abhinav National Monthly
Refereed Journals of Research in Commerce & Management, VII (1), 55-61

5. R. Rupa (2017), Progress of MUDRA with the special reference of Tamil Nadu.

6. Verma S. Chandra (2015), Mudra Bank to “Fund small Businesses”.

7. Mehar, L. (2014). FINANCIAL INCLUSION IN INDIA.

8. Dr. J. Venkatesh and Ms. R. Lavanya Kumari (2017) Performance of MUDRA

bank: a study on financial assistance to MSME sector.

9. Rudrawar, M. A. A., &Uttarwar, V. R. (2016). An Evaluatory Study of MUDRA

Scheme. International Journal of Multi-faceted and Multilingual Studies.

10. Roy, Anup Kumar (2016). “Mudra Yojana-A Strategic tool for Small Business
Financing”, International Jopurnal of Advance Research in Computer Science and
Management Studies.

11. Mol, S. TP (2014) Financial Inclusion: Concepts and Overview in Indian Context.
Abhinav International Monthly Refereed Journal of Research in Management &
Technology.

59
12. B.S, P. R. ((February. 2018). Women Entrepreneurship and Government
Support in Present Scenario in the Context of India. IOSR Journal of 609 Journals
of Positive School Psychology Business and Management (IOSR-JBM), PP 25-28.

13. Ajay Kumar SALGOTRA, P. K. ((2021). Does Access to Finance Eradicate

Poverty? A Case Study of Mudra Beneficiaries. Journal of Asian Finance, Economics
and Business Vol 8 No 1, 637–646.

14. Kumar, D. A. (2019). A Study on the Performance of Pradhan Mantri Mudra

Yojana in India. RESEARCH REVIEW International Journal of Multidisciplinary, PP
270-271.

15. Avani.T (2016). “How The MUDRA Bank Helps Sme‟s To Grow”, Impact:
International Journal Of Research In Applied, Natural And Social Sciences, ISSN (E):
2321 -8851 Vol. 4, Issue 8.

16. Gupta (2015) “MUDRA: Financial Inclusion of the Missing Middle Volume‟‟,
Indian Journal of Applied Research: 5, Issue: 11, November 2015, ISSN – 2249 -555X.

17. Kumar (2017) “IMPACT OFMUDRA YOJANA ONFINANCIAL INCLUSION”,

International Conference on Recent Trends in Engineering, Science &Management,
ISB-978- 93 – 86171 21-4.

18. Godha, A., & Nama, D. (2017).Pradhan Mantri Mudra Yojana: A New Financial
Inclusion Initiative. International Journal of Engineering Technology, Management,
and Applied Sciences, 5 (3), 200-204.

19. Lall, D. A. (2018, July). A STUDY ON CRITICAL ANALYSIS OF

MUDRAYOJANA IN UTTARAKHAND. International Journal of Social Science and
Economic Research, 03(07).

20. Ruhela, S., Kumar, K., & Prakash, D. (2017, May). MUDRA BANK: A
PARADIGM SHIFT IN REFINANCING AND REGULATING MFIS IN INDIA.
International Journal of Business Quantitative Economics and applied Management
Research, 03(02).

60
21. Gupta, S. K., Matho, K. N., & Dubey, N. D. (2017). Role of MUDRA Yojana in
Promotion of Financial Inclusion in Jharkhand. International Journal of Trend in
Scientific Research and Development, 01(06), 1085-1089.

22. Bakshi, K., & Chawla, S. (2016). MUDRA YOZNA- NEW WINGS FOR
GROWTH OF SMALL ENTREPRENEURS, (July), 10–14.

23. Agarwal, M. (2017). Pradhan Mantri Mudra Yojana: a Critical Review.

Parikalpana - KIIT Journal of Management, 13(2), 97–106.

24. Prakash, M., & Devaki, B. (2018). A Study on the Performance of Mudra in Tamil
Nadu. International Journal of Multidisciplinary Research and Development, 2(5), 133–
136.

25. Mahajan, A. (2018). An analysis of performance and impact of MUDRA Yojana

under PMMY in the year 2016. Research Journal of Management Sciences, 7(3), 1–5.

61
 WEBILOGRAPHY

WEBSITES:-

https://ksom.ac.in/wp-content/uploads/2018/01/97-106-PRADHAN-MANTRI-
MUDRA-YOJNA.pdf

https://www.mudra.org.in/

https://www.researchgate.net/publication/359973808_A_STUDY_AND_REVIE
W_OF_PRADHAN_MANTRI_MUDRA_YOJANA

https://www.ijsr.net/archive/v9i12/SR201216090839.pdf

https://www.mudra.org.in/offerings

https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.researchgate.ne
t%2Fpublication%2F359973808_A_STUDY_AND_REVIEW_OF_PRADHAN_
MANTRI_MUDRA_YOJANA&psig=AOvVaw2_0KAeYi-
17agKirWaZAJG&ust=1677487305014000&source=images&cd=vfe&ved=0CB
AQjRxqFwoTCICn-qjlsv0CFQAAAAAdAAAAABAg

62
ANNEXURE:
Questionnaire on awareness of Mudra Yojana to among people in Ambarnath.

1. Name.......

2. Gender:

a) Male

b) Female

3. Age:

a) Below 20 Years

b) 20-40 Years

c) 40-50 Years

4. Occupation:

a) Government employee

b) Professional

c) Business

d) Student

e) Employee

5. Annual income:

a) Below Rs. 10,000

b) Rs. 10,000 Rs. 30,000

c) Rs.30,000-Rs. 50,000

d) Above Rs. 50,000

6. Are you aware about Pradhan Mantri MUDRA Yojana (PMMY)?

a) Yes

b) No

63
(A) If yes then tells me which year Pradhan Mantri MUDRA Yojana (PMMY) was
launch?

a) 2014

d) 2015

c) 2016

b) 2017

7. How did you come to know about Pradhan Mantri MUDRA Yojana (PMMY)?

a) Friends & Relatives

b) Advertisement or Media

c) Bank or financial Institution

d) Other

8. Did you know about a main objective of Pradhan Mantri MUDRA Yojana
(PMMY)?

a) Yes

b) No

(A) If yes, then tell me what is the main objective of Pradhan Mantri MUDRA
Yojana (PMMY)?

a) Development of micro enterprise sector

b) Refinance support

c) Purchase of equipment & new technology

d) Other

9. Did you know the maximum limit of loan under this Scheme?

a) Yes

b) No

(A) If yes, then tell me what is the maximum limit of loan under the Pradhan
Mantri MUDRA Yojana (PMMY)?

a) Below Rs.3,00,000

b) 3,00,000 – 6,00,000

64
 c) 6,00,000 – 8,00,000

d) Above Rs.8,00,000

10. Pradhan Mantri MUDRA Yojana (PMMY) is beneficial for Micro industry of
country give your response on the rating scale?

a) Strongly agree

b) Agree

c) Neutral

d) Disagree

e) Strongly disagree

11. PMMY has helped to reduce the dependency on informal financial institution?

a) Strongly agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

12. PMMY is capable to provide employment in country?

a) Agree

b) Neutral

c) Disagree

d) Strongly Disagree

13. PMMY is an effective policy to measure or solve the financial problems of

Micro industry of India?

a) Strongly agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

65
14. PMMY is helpful in improving the country economic growth?

a) Agree

b) Neutral

c) Disagree

d) Strongly Disagree

15. There is need up pace the extant of awareness about this scheme?

A) Yes

B) No

If any suggestion…………

66
 SPECIALIZATION PROJECT

“An Analytical Study on the Financial Statements of Titan

Company Ltd”

1
An Analytical Study on the Financial
Statements of Titan Company Ltd.
Index

Sr.No Particular Page No.

1. INTRODUCTION 1 to 39

2. RESEARCH AND METHODOLOGY 40 to 45

3. LITERATURE REVIEW 46 to 49

4. DATA ANALYSIS 50 to 76

5. FINDING 77

6. CONCLUSION 78

7. SUGGESTION 79

8. BIBLIOGRAPHY 80

2
 Chapter 1:- Introduction
Introduction:-

A company's financial statements give information about its position and performance
financially. Understanding the financial health, trends, and potential risks of the company
requires careful examination of these statements. Understanding Titan Co.'s financial
performance and position over a specific time period will be made easier with the aid of an
analytical study of the company's financial statements. For stakeholders like investors,
creditors, and management to make wise decisions, this study will be helpful. The balance
sheet, income statement, and cash flow statement are the financial statements that will be
examined in this study. The assignment of assets and liabilities throughout reality,
frequently in situations of risk or vulnerability, is the focus of the field of finance or money.
Account can also be described as the executives' art of handling money.
Market participants intend to value resources based on their degree of risk, intrinsic value,
and typical rate of return. Accounts can be divided into three subclasses: corporate budgets,
public budgets, and individual budgets. Currently, personal financial decisions regarding
how much money is spent, saved, invested, and saved by an individual are the focus of
finance.
Similar choices are made when businesses raise money from investors, invest that money
in an effort to turn a profit, and other financial activities in a business context.
Account is the art and science of managing cash and deciding whether to reinvest profits in
the company or return them to financial backers. It is recognized that a company's financial
performance plays a significant role in its status and position.
It plays a significant role in determining the profitability and liquidity of the organization.
In this fiercely competitive environment, where the average business fails due to a lack of
proper and efficient profitability and liquidity management strategies, many businesses are
working diligently to increase their level of performance. The lack of profitability and
growth among organizations as a result of inadequate management of the net profit and
liabilities of the organization is the main issue under discussion here. The study aims to
evaluate the ratios.
This study provides the researcher and the general public with information about the
lifestyle company's general effectiveness in serving the public. The study will highlight the

1
various areas where TITAN COMPANY Ltd excels and where it falls short, and it will give
lifestyle companies the chance to balance their activities for the best result

Lifestyle Industry:-

Lifestyle industry refers to the market segment that sells products and services that aim to
improve a person's quality of life, both physically and mentally. This can include fashion,
beauty, home goods, health and wellness, food and beverages, and travel and hospitality,
among others. The lifestyle industry has grown significantly in recent years, driven by
consumer demand for products and services that enhance their overall well-being and
improve their daily lives.

One of the key drivers of the lifestyle industry is the rise of consumer awareness about
health and wellness. With the increasing focus on healthy living and self-care, many
consumers are looking for products and services that align with these values. This has led
to a growing market for natural and organic products, such as food and skincare, as well as
for fitness and wellness services like gyms, spas, and yoga studios. .Another important trend
in the lifestyle industry is the increasing popularity of e-commerce. With the rise of online
shopping, many consumers are now able to purchase lifestyle products from the comfort of
their own homes. Online marketplaces such as Amazon, eBay, and Alibaba have made it
easier for consumers to find and purchase products from a variety of brands, whilealso
providing a platform for smaller, niche brands to reach a wider audience.

The fashion industry is also a significant part of the lifestyle industry, and it has been
transformed in recent years by the rise of fast fashion. Fast fashion is a trend where fashion
brands produce low-cost, trend-focused clothing that is designed to be worn for just a few
seasons before being replaced by the next latest trend. While fast fashion has made it easier
for consumers to stay on-trend, it has also raised concerns about the environmental impact
of this model, as well as the working conditions for workers in the fashion industry.

The beauty industry is another key part of the lifestyle industry, with a focus on products
that enhance a person's physical appearance and provide a boost of confidence. The beauty
industry is driven by innovation, with new products and techniques being introduced
regularly to meet the demands of consumers. For example, the rise of social media and the

2
use of influencer marketing has had a significant impact on the beauty industry, as
consumers look to these sources for product recommendations and inspiration.

Finally, the travel and hospitality industry is a key player in the lifestyle industry. With the
rise of budget airlines and the growth of the sharing economy, travel has become more
accessible and affordable for many people. This has led to an increase in travel for both
leisure and business purposes, with consumers looking for unique and personalized
experiences that allow them to fully immerse themselves in local cultures. In conclusion,
the lifestyle industry is a growing and dynamic market segment that encompasses a wide
range of products and services aimed at improving a person's overall well-being and quality
of life. From health and wellness to fashion and beauty, the industry is driven by consumer
demand and is constantly evolving to meet the changing needs and desires of consumers.

3
Function:-
The lifestyle industry is a vast and diverse sector that encompasses a wide range of products
and services related to personal care, fashion, home décor, entertainment, and leisure. Its
primary function is to provide consumers with a variety of products and services that help
them live a comfortable and fulfilling life. The industry operates by creating, producing,
and marketing products and services that meet the needs of consumers.

1. Fashion and Beauty: The fashion and beauty segments of the lifestyle industry are
centered on helping people look and feel their best. From clothing and accessories to
skincare products and cosmetics, these segments offer a range of products that enable
consumers to enhance their personal style and appearance.

2. Home Décor and Furnishings: The home décor and furnishings segment of the lifestyle
industry focuses on creating functional and aesthetically pleasing living spaces. This
segment offers a wide range of products such as furniture, home décor accessories, bedding,
and kitchenware, among others.

3. Entertainment and Leisure: The entertainment and leisure segments of the lifestyle
industry aim to provide consumers with activities and experiences that are enjoyable and
enriching. From music and film to sporting events and theme parks, these segments offer a
diverse range of products and services that help people relax and have fun.

Fashion & Beauty Home, Decor & Furnishing

Lifestyle Industry

Entertainment & Leisure Wellness & Fitness

4. Wellness and Fitness: The wellness and fitness segments of the lifestyle industry are
centered on helping people maintain good health and well-being. This segment offers a

4
wide range of products and services, including fitness equipment, nutrition and health
supplements, and personal care products.

The lifestyle industry plays a crucial role in the economy by creating jobs and generating
revenue. It is also essential to the overall quality of life of consumers by providing them
with products and services that make their lives easier, more comfortable, and more
enjoyable.

WHAT IS FINANCIAL ANALYSIS?

An analysis of financial statements entails carefully analyzing the accounting data
presented in the financial statements. With the aid of various techniques or tools designed
for the purpose, individual items are studied, their relationships with other related figures
are established, and the data is occasionally rearranged to have a better understanding of
the information. The process of analyzing financial statements involves assessing the
relationships between their component parts in order to gain a better understanding of the
position and performance of the company.

The treatment of the information in the financial statements in a way that allows for a
thorough diagnosis of the profitability and financial position of the firm in question is what
is meant by the term "analysis of financial statements." Financial statements are
methodically categorized, examined, and compared to data from prior years or from other
businesses in a similar industry for this purpose. Despite the fact that the terms "analysis"
and "interpretation" are closely related, they can be distinguished from one another.
Analysis is the process of assessing how the different financial statement elements relate to
one another in order to better understand the firm's performance.
The evaluation of a company's profitability, liabilities, strengths, and future earning
potential is done through financial analysis. The financial viability of an organization can
be evaluated using a wide range of techniques, including the most popular methodologies
of horizontal analysis, vertical analysis, and ratio analysis.

5
DEFINITION:-

❖ According to John Myer, “financial statement analysis is largely a study of relationship

among the various financial factors in a business as disclosed by single set of statements
and a study of the trend of these factors as shown in a series of statements.
❖ According to Kennedy and Muller, “the analysis and interpretation of financial
statements reveal each and every aspect regarding the well-being financial soundness,
operational efficiency and credit worthiness of the concern concerned.

OBJECTIVES:-

1. Assessment of Financial Performance: Financial analysis is used to assess the financial

performance of a company by evaluating its financial statements and key performance
indicators.

2. Decision-making support: The objective of financial analysis is to provide decision-

makers with relevant information that can help them make informed decisions, such as
whether to invest in a company or expand its operations.

3. Identifying Trends: Financial analysis helps identify trends in a company's financial

performance over time, which can be used to make predictions about future performance.

4. Evaluating Risk: Financial analysis is used to evaluate the risk associated with investing
in a company, by analyzing its financial statements and ratios, such as debt to equity.

5. Determining Valuation: Financial analysis is used to determine the fair value of a

company, which can be used to negotiate the purchase price or determine the value of the
company in an initial public offering.

6. Evaluating Liquidity: Financial analysis is used to evaluate the liquidity of a company,

which is its ability to meet its short-term obligations.

6
7. Detecting Fraud: Financial analysis can be used to detect fraud by evaluating financial
statements and looking for anomalies in data.

8. Budgeting and Forecasting: Financial analysis can be used to create budgets and
forecasts, which can help a company plan for future growth and expenses.

9. Benchmarking: Financial analysis is used to benchmark a company's performance

against its competitors and industry averages, to identify areas of improvement and
opportunities for growth.

10. Assisting in Corporate Finance: Financial analysis is a critical aspect of corporate

finance, providing decision-makers with the information they need to make informed
decisions about investments, mergers and acquisitions, and financing activities.

7
Nature:-
Financial analysis is the study of an organization's financial information to make informed
decisions. It is a process of evaluating financial statements and other financial data to
understand the financial health and performance of a company. The purpose of financial
analysis is to assess the financial condition of a business and to understand its future
potential.

The nature of financial analysis is multi-dimensional and complex. It involves the

examination of several aspects of financial information, including balance sheets, income
statements, cash flow statements, and other financial reports. Financial analysts use a range
of tools and techniques to evaluate the financial information, including ratio analysis, trend
analysis, and benchmarking.

One of the key features of financial analysis is its objectivity. Financial analysts must be
impartial and unbiased when evaluating financial information. They must be able to identify
and analyze the strengths and weaknesses of a company's financial position and make
recommendations based on their findings.

Financial analysis is also dynamic, as financial information is constantly changing.

Financial analysts must be able to keep up with the latest trends and changes in financial
markets and industries. They must be able to adjust their analysis accordingly to ensure that
their recommendations are relevant and accurate.

Another important aspect of financial analysis is its usefulness. The results of financial
analysis must be meaningful and actionable for decision-makers. Financial analysts must
be able to communicate their findings and recommendations in a clear and concise manner.

In conclusion, the nature of financial analysis is complex and multi-dimensional. It requires

a combination of technical skills, analytical abilities, and strategic thinking. Financial
analysis is essential for companies to understand their financial health and make informed
decisions about their future growth and success.

8
Significance:-
Financial analysis is the process of examining a company's financial information to
understand the health and performance of the organization. This analysis is critical to
making informed decisions and evaluating the potential success of a company.

The significance of financial analysis is multi-faceted, including the following:

1. Assessing the Financial Health of a Company - Financial analysis provides a

comprehensive view of a company's financial standing. This includes a review of financial
statements, such as balance sheets, income statements, and cash flow statements, to identify
any trends or patterns in revenue, expenses, and other financial metrics. This information
is essential in determining whether the company is financially stable, has the capacity to
grow, and is able to repay debts.

2. Evaluating Investment Opportunities - Financial analysis is a critical tool for investors,

as it provides valuable information about the potential return on investment. By analyzing
a company's financial statements, an investor can determine the stability and growth
potential of the company, which can inform their investment decisions.

3. Improving Business Decisions - Financial analysis is essential for business owners and
managers in making informed decisions about their operations. By analyzing financial data,
they can identify areas where they can reduce costs, increase revenue, or make other
strategic changes that can improve their bottom line.

4. Predicting Future Financial Performance - Financial analysis allows companies to look

at historical financial information to make informed predictions about future financial
performance. For example, by analyzing past sales trends, companies can estimate future
sales and make decisions based on those projections.

5. Facilitating Communication with Stakeholders - Financial analysis is also an important

tool for communicating with stakeholders, such as investors, lenders, and employees. By
presenting clear and accurate financial information, companies can build trust and

9
credibility with these stakeholders and communicate the financial health of the company
effectively.

In conclusion, financial analysis plays a crucial role in helping companies make informed
decisions, evaluate investment opportunities, and communicate with stakeholders. Without
financial analysis, companies would be relying on guesswork and intuition, which can lead
to poor decision-making and negative outcomes.

Types of Financial Analysis:-

Financial analysis is the process of evaluating an organization's financial information to
understand its financial position, performance, and potential for growth. There are various
types of financial analysis that can be performed, including:

1. Trend Analysis: This type of analysis evaluates changes in financial data over a specific
period of time to identify patterns and trends. This helps organizations understand their
financial performance over time and make informed decisions about future investments.

2. Ratio Analysis: This type of analysis calculates ratios based on financial information to
help organizations evaluate their performance, efficiency, and liquidity. Common ratios
include return on investment, debt-to-equity, and gross profit margins.

3. Benchmarking Analysis: This type of analysis compares an organization's financial data

to industry standards or other companies in the same industry. This helps organizations
understand their relative position and identify areas for improvement.

4. Budget Analysis: This type of analysis evaluates an organization's budget and actual
financial results to identify any variances and to track spending and revenue. This helps
organizations make informed decisions about future budgeting and improve financial
planning.

5. SWOT Analysis: This type of analysis evaluates an organization's strengths, weaknesses,

opportunities, and threats to understand its overall financial position and identify areas for
improvement.

10
6. Cash Flow Analysis: This type of analysis evaluates an organization's cash inflows and
outflows to ensure it has sufficient cash to cover its expenses and invest in growth
opportunities.

In conclusion, financial analysis provides organizations with valuable insights into their
financial performance and helps them make informed decisions about future investments
and operations. The type of analysis performed will depend on the organization's specific
needs and goals, but the results can help organizations improve their financial position,
increase efficiency, and achieve long-term success.

Techniques & Tool used in Financial Analysis:-

Financial statements provide comprehensive information about an organization's assets,

liabilities, equity, reserves, costs, and profit and loss. For interested parties like creditors,
shareholders, investors, etc., they are not easily understandable. Therefore, a variety of
methods are used to analyze and interpret the financial statements. Techniques for financial
statement analysis are primarily divided into three groups.

1. Cross-sectional investigation Inter-firm comparison is another name for it. This

comparison of an enterprise's financial characteristics to those of another, comparable
enterprise during that accounting period aids in the analysis of those characteristics. For
instance, suppose company A made a 15% profit on its initial investment. It is unclear from
this whether it is sufficient or not. Only then can we conclude that company B is superior
if we do more research and find that a comparable company made 16% during the same
time period. It becomes a meaningful analysis as a result.

2. Analyses of time series the term "intra-firm comparison" is also used. This approach
establishes a connection between various financial statement items, enables comparisons,
and yields results. Possible comparison points include: - comparing the financial statements
of the same business unit from various years. Comparison of the financial statements of
various business units for a given year.

11
3. Cross-sectional cum time series analysis this analysis is intended to compare the financial
characteristics of two or more enterprises for a defined accounting period. It is possible to extend
such a comparison over the year. This approach is most effective in analyzing of financial
statements.

The financial position is ascertained through the analysis and interpretation of financial
statements. The relationship between financial statements is studied using a variety of
instruments, techniques, and methods. But the crucial instruments that are frequently
employed for analyzing and interpreting financial statements are as follows:-

Ratio Analysis: This is a popular and widely used tool in financial analysis. Ratios are
calculated from financial statements and are used to compare the financial performance of
an organization over time and with other organizations in the same industry. Some of the
most commonly used ratios in financial analysis include liquidity ratios, solvency ratios,
profitability ratios, and efficiency ratios.

Trend Analysis: This technique involves analyzing changes in financial data over time to
identify trends and patterns. The trend analysis is used to determine the overall trend in the
financial performance of an organization and to identify areas that require improvement.

Common-Size Financial Statements: This technique involves expressing financial data as

a percentage of total assets or total revenue. Common-size financial statements make it
easier to compare the financial performance of different organizations and to identify areas
of concern.

Cash Flow Analysis: This technique involves examining an organization's cash inflows and
outflows to assess its liquidity and solvency. Cash flow analysis is important because it
provides information on the organization's ability to generate cash and to pay its bills.

Break-Even Analysis: This technique involves determining the point at which an

organization's revenues equal its expenses, and it begins to make a profit. Break-even
analysis is useful in determining the minimum sales level required to cover fixed and
variable costs.

12
Budget Analysis: This technique involves comparing actual financial results with budgeted
or forecast results. Budget analysis is used to identify areas of over or under-spending and
to make adjustments to the budget as needed.

Industry Comparisons: This technique involves comparing the financial performance of an

organization with its peers in the same industry. Industry comparisons are useful in
identifying areas of strength and weakness and to benchmark the organization's
performance against industry averages.

13
COMPANY PROFILE OVERVIEW OF TITAN
COMPANY Ltd.

Introduction of the Titan Company:-

The Titan Company Limited is a multinational conglomerate based in India. It is a

subsidiary of the Tata Group and was established in 1984. The company is headquartered
in Bangalore and is engaged in the manufacture and sale of watches, jewelry, eyewear, and
precision engineering products. Over the years, the company has expanded its operations
and has become one of the leading lifestyle brands in India.

Titan's history can be traced back to 1984, when the Tata Group established the company
as a joint venture with the Tamil Nadu Industrial Development Corporation (TIDCO). The
company was initially set up to manufacture watches under the brand name "Titan." Over
the years, the company has expanded its operations and has diversified into other segments,
including jewelry and eyewear.

Titan's watches are popular in India and are known for their quality and durability. The
company offers a wide range of watches for both men and women, including sports
watches, dress watches, and casual watches. The company has also established itself as a
leading brand in the jewelry segment and offers a wide range of gold, diamond, and
platinum jewelry.

In addition to its core operations, Titan has also expanded into the eyewear segment, with
the launch of its eyewear brand "Titan Eye plus." The company offers a wide range of

14
eyeglasses and contact lenses, and has established itself as a leading brand in the eyewear
segment in India.

Titan is known for its strong focus on innovation and technology. The company has a strong
R&D department and invests heavily in research and development. This has helped the
company to stay ahead of its competitors and to introduce new and innovative products.

The company has also established a strong distribution network, with a presence in over
250 cities in India. The company operates through a network of over 600 exclusive brand
outlets, over 3,000 multi-brand outlets, and over 1,500 World of Titan stores.

In conclusion, the Titan Company Limited is a leading conglomerate in India and is known
for its quality products, innovative designs, and strong focus on technology. The company
has established a strong brand presence in India and has a wide range of products in the
watches, jewelry, and eyewear segments. With its strong distribution network and focus on
innovation, the company is well-positioned to continue to grow and expand in the future.

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.

Vision:-
We create elevating experiences for the people we touch and significantly impact the world
we work in.

Philosophy:-
The name Titan today evokes superior craftsmanship, innovative technology and
trustworthy product quality.

15
Values:-
Customer first: Customers take precedence over all else, always.

People make the brand: Titanians 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 in environment

and community betterment.

Profile of the Company:-

Type Public industry lifestyle

Founded 1984

Founded Xerxes desai

Headquarters Bangalore, Karnataka, India

Key people Mr. N. Muruganandam (chairman) C K Venkataraman (MD)

C K Venkataraman, CEO

Products watch, jewellary, precision engineering, bags, perfumes,

belts, wallets and eyewear

Brands Fastrack • tanishq • Titan Eyeplus • Sonata

16
 No of employees 7,263 (2023)

Website Titancompany.in

History:-
 1984-1990; - Titan Company Limited, formerly known as Titan Watches Limited, was
established in Chennai on July 26, 1984. In the State Industries Promotion Corporation
of Tamil Nadu, Ltd. Industrial area at Hosur, a factory for the production of quartz
analogue electronic watches was established. A memorandum of understanding (MoU)
committing Titan Company and Casio to produce 2 million digital and analog-digital
watches was signed in November 1986. A satellite case plant with a current production
capacity of 500,000 watch cases per year was established in 1989 in Dehradun,
Uttarakhand.
 1991-2000:- The business, which had previously only produced watches, changed its
name to Titan Industries Ltd. in September 1993 as it expanded its product line. Titan
introduced its jewelry line Tanishq in 1994. In an effort to compete with Timex, the
company introduced its watch and accessory brand, Fastrack, in 1998.
 2001-2010:- Titan introduced the Dash line of children's watches in 2001. Poor sales led
to the brand's discontinuation in 2003. The company and the Moet Hennessy Louis
Vuitton Group entered into an agreement in 2004 to service the latter's line of watches
in India through its customer service centres. Fastrack was established in 2005 as a stand-
alone accessory company aimed at urban youth. Fastrack introduced sunglasses in the
same year and bags, belts, and wallets in 2009 with the aim of becoming a fashionbrand.
 2011-2023:- In order to enter the European market, Titan purchased the Swiss
watchmaker Favre-Leuba in 2011. With the brand Skinn, Titan entered the fragrance
market in 2013. Later that year, under the Fastrack brand, it entered the helmet market.
It changed its name to Titan Company Ltd. in the same year. In order to open its retail
stores in India, it formed a joint venture with Montblanc in 2014. To speed up order
processing, Titan opened manufacturing facilities for prescription lenses in Noida,
Kolkata, and Mumbai in 2016. In order to establish the brand's presence in the South,
Titan merged Tanishq with its jewelry brand, Gold Plus, which is marketed to consumers
in South India.

17
 Taneira is a Titan ethnic wear line that sells hand-woven sarees from various weaving
regions in India. The company launched the line in 2016. In 2017, Bengaluru saw the
opening of the first retail location; New Delhi and Hyderabad soon followed.
Additionally, Titan recently (during the final quarter of 2016) announced that a line of
reasonably priced smartwatches under its brands Sonata and Fastrack would soon be
released.
Titan entered the wearable technology market in 2016 when it unveiled Jut, a
smartwatch developed in partnership with Hewlett Packard.
The business introduced the Gesture Band fitness tracker in 2017 under its Fastrack
youth accessories brand. The same year, it invested $3 million in Covet, a wearable
technology company based in Singapore.

Products:-

Watches:-

The Fastrack, Sonata, Raga, Octane, and Xylys brands are part of the watches division.
Hugo Boss and Tommy Hilfiger watches were licensed for marketing and distribution by
the company in 2011. 2012 saw the incorporation of Favre Leuba. The division's revenue
in 2018 was $2,126 crore, or 10% of the company's overall revenue.

18
Eyewear:

With the introduction of sunglasses in 2007, Titan Industries entered the market for fashion
accessories. It introduced Titan Eye Plus, a company that creates sunglasses, frames,
contact lenses, and prescription eyewear. The division maintained a steady growth of 8%
and accounted for 415 crore in the fiscal year 2016–17.

Jewellery:-

Tanishq was founded by Xerxes Desai in 1995. In the luxury market, Zoya was introduced,
and Mia, a sub-brand of Tanishq, was used for jewellery for work attire. Titan's total

19
revenue increased 20.44% to 15,656 crore in 2017–18, of which jewellery sales brought in
13,036 crore. Titan made a purchase of CaratLane in 2016. Titan's market share in India's
jewellery market as of 2022 is 6%.

Perfume:-

Under the brand name "Skinn," Titan introduced six different fragrances in the Indian
perfume market in 2013. They worked with eminent perfumers like Olivier Pescheux and
Alberto Morillas.

20
Titan Engineering & Automation Limited

Titan Engineering & Automation Limited (TEAL), formerly known as TITAN-Precision

Engineering division (PED) is a wholly owned subsidiary of Titan Company Limited.
Born as an in-house engineering team dedicated to high precision component manufacturing
and designing, manufacturing automation machines, TEAL has augmented into realms
beyond the initial setup. The team now boasts of a full-fledged machine building and
automation and component manufacturing businesses catering to the global markets.

Aerospace & Defence

Aerospace & Defence business builds precision components and sub-assemblies catering to
the global Aerospace and Defence customers.
Journey of A&D started in 2005 leveraging the high precision manufacturing pedigree of
watch making in Titan Company Ltd. The business has over the years made specific
investments of over USD 20 Million in the business with modern new green field facility in
Muduganapalli, Hosur.
With established Quality, System, Processes and ever demanding Expectations of the
Customers, we have decided to deepen our relationship by continuing to make investments
in Capabilities, Capacities and do everything possible to provide the best services and be
considered as an extended arm of our esteemed customers.
Rooted in the Titan’s culture of attention to detail, A&D unit houses a state-of-art facility,
which manufactures precision machined components and sub-assemblies such as:
Aerospace
Engine & Accessories
Aero Systems
Transmission
Landing Systems

Defence

Underwater systems
Optronics
Missiles
UAVs

21
Automation Solutions
Automation solutions commenced at Titan Company Limited in 1990. The drive was intended
to appease increasing demands of quartz watches and to meet the stringent product quality.
Initially, the venture kick-started by designing and manufacturing machine tools, assembly &
testing machines to address in-house (Watch Division) captive requirements.

Impetus picked up in 2003, with the existing expertise of developing precision components
assembly and testing machines made machine building to venture into the Automotive

segment, debuting what is now a full-fledged revenue spiner branded 'TEAL

AutomationSolutions'.
Automation solutions unit is in the business of providing customer-specific turnkey Assembly
and Testing solutions for the following market segments:
Automotive
Electrical & Electronics
Medical Devices
Consumer packaged goods
Other Engineering
With acclaimed expertise in understanding the assembly and testing technologies along with
the market-specific global standards, TEAL Automation solutions had delivered more than
500 assembly and testing lines to around 100plus customers across the globe.

TEAL Automation solutions had made its footprint in the automotive, electrical and medical
industry by giving various kinds of assembly and testing machines such as:
Fully Automatic Assembly Machines
Lean Assembly Machines
Robotic Assembly Machines
Vision-Based Systems
Test Rigs(Functional, Performance, Leak testing etc)

TEAL Automation Solutions which is known in the market for its superior design capability,
Flexibility, Project management skills and customer-centric approach had enabled to export
the machines to 14 countries such as USA, Germany, Romania, Hungary, UK, China,
Argentina, Czech Republic, Portugal, Mexico etc.

22
 Subsidiaries and affiliate companies:-

An entirely owned subsidiary of Titan is Titan Engineering & Automation Limited.

Previously, it went by the name Titan-Precision Engineering Division. The business now
specializes in component manufacturing, automation, and machine building.
Favre Leuba, a Swiss watchmaker, was bought in 2011 and incorporated as a Titan
subsidiary in 2012. The purchase price of the company was €2,000,000. Switzerland's
Solothurn is home to its headquarters. Titan paid $50 million for a 62% stake in CaratLane
2016.
The Swiss company Favre Leuba AG currently has Titan Watch Company Limited in Hong
Kong as a 100% subsidiary.
In order to sell Montblanc goods through its retail locations, Titan entered a joint venture
in 2015. Montblanc Services B.V. owns 51% of Montblanc India Retail Private Limited,
while Titan owns 49% of the equity.
Titan has appointed three directors, including its Managing Director Bhaskar Bhat, on the
board of its new joint venture (JV) with Maison Montblanc which will carry out single
brand retail trading of Montblanc’s products in India.

 The other two directors are Titan Co-CEO of Watches and Accessories Division S Ravi
Kant and Independent Director Ireen Vittal.

 The appointment is as per the agreement between the two partners, under which Titan has
the right to appoint three out of six directors, the company said in a BSE filing.

 The JV has “equity participation pursuant to FIPB approval in the ratio of 51:49 by
Montblanc Services BV and Titan Co Ltd, respectively”, it added.

 The equity share capital of the JV company after allotment on December 5, 2015 is Rs.
41.50 crore comprising 4.15 crore shares of Rs.10 each, Titan said.

 Montblanc, which is re-entering India will open five boutiques in the next three months in
Mumbai, Delhi, Hyderabad and Pune through the joint venture.

23
Board of directors/senior management:-

Position Personnel

Chairman Mr N Muruganandam

Managing director CK Venkataraman

Vice Chairman N N Tata

Independent Mrs. Hema Ravichandar

director

Independent Mrs. Ireena Vittal

director

Independent Mr. Ashwani Puri

director

Independent Mr. B. Santhanam

director

Independent Mr. Pradyumna Vyas

director

Independent Dr. Mohanasankar Sivaprakasam

director

Director Bhaskar Bhat

Director Mr. Arun Roy

Director Ms. Kakarla Usha

Company secretary Dinesh Shetty

24
Awards:-The Titan Company has gained appreciation for a variety of endeavors and
categories in numerous national and international forums.

Corporate: -

 Selected by the Indian government as Best Employer for the 2014 National Award
for the Empowerment of Persons with Disabilities
 According to the 2014 Channel News Asia Sustainability Ranking, Titan is one of
the top 100 Asian businesses for sustainability.
 In the Gems and Jewelry Sector, the Top Indian Company award was given at the
2014 Dun & Bradstreet Corporate Awards.
 Franchisee India's "Hall of Fame" award presented at the 12th Franchisee Awards
2014.

Watches:-

 Award at the CII 24th Kaizen national awards for assembly casing team.
 Good Design Award 2014 by design Council of Japan for Skeletal Edge
 Best Product design of the year-Watches & Jewellery" award by Red Dot for
Skeletal Edge for 2014 Bronze medal at the Indian Effies Award for Fastrack.

Jewellery:-

 "Most Admired retailer of the year" award in Jewellery Category by Images Retail
Awards
 Tanishq wins Global Awards for Excellence in Quality Management & Leadership
by World Quality Congress
 Tanishq is the first Indian Brand to enter the list of top 30 Best Retail Brands in
Asia Pacific and stands at # 13 as per Interbrand.

Eyewear:-

 Award for Customer service excellence at Golden Globe Tigers Award

 Gold & Silver Awards at TRRAIN (Trust for Retailers and Retail Associates of
India) Retail Awards
 Gold Award in the Outdoor Advertising Convention 2014

25
Precision engineering:-

 Hosur won three State Safety Awards announced by Tamil Nadu Government in
2013

Brands:-

Recent Development:-

Titian Company is a leading provider of software solutions for the oil and gas industry. In
recent years, the company has made significant progress in its efforts to expand its services
and reach new customers.

One of the major recent developments at Titian has been the launch of a new platform that
offers a suite of digital tools designed to streamline the production and distribution of crude
oil. This platform has been well-received by industry experts and has helped the company
to establish itself as a leader in the oil and gas software market.

Another significant development at Titian has been the expansion of its sales and marketing
efforts. The company has increased its presence in key global markets, such as rcchthe
Middle East and South America, and has established partnerships with leading oil and gas
companies to promote its services.

In addition, Titian has also made significant investments in research and development to
enhance its product offerings and stay ahead of the competition. The company has
established a dedicated R&D team that is constantly working to improve the features and
functionality of its software solutions.

Furthermore, Titian has also made a strong commitment to sustainability and

environmental protection. The company has implemented a number of measures to reduce
its carbon footprint and promote sustainable practices in the oil and gas industry.

Overall, Titian Company has made great strides in recent years and has established itself as
a leading provider of software solutions for the oil and gas industry. With its innovative
products, expanded reach, and commitment to sustainability, the company is well-
positioned for continued success in the years ahead.

26
Organization Structure:-

Titian Company is a well-established organization in the business world, known for its
innovative products and services. The company has a strong organizational structure that
supports its operations, enables effective communication, and ensures that all employees
are working towards the same goal.

The organizational structure of Titian Company is hierarchical in nature, with clear lines of
authority, reporting relationships, and communication channels. At the top of the structure
is the CEO, who is responsible for overall management of the company and making
strategic decisions.

Under the CEO are the top-level executives, who are in charge of specific departments such
as marketing, sales, operations, human resources, and finance. These executives are
responsible for overseeing the operations of their respective departments and making
decisions that align with the company's goals and objectives.

Under the top-level executives are the middle managers, who are responsible for managing
specific projects or teams. They are responsible for implementing the decisions made by

27
the top-level executives and ensuring that the work of their teams is aligned with the
company's goals.

The lower levels of the organizational structure are comprised of front-line employees, who
are responsible for carrying out the tasks necessary to achieve the company's goals. These
employees receive instructions and guidance from their managers, but also have some
autonomy in their day-to-day work.

In addition to the hierarchical structure, Titian Company has a number of cross-functional

teams that work together to achieve specific goals. These teams are made up of employees
from different departments and levels within the organization, and are designed to foster
collaboration and increase efficiency.

Overall, the organizational structure of Titian Company supports the company's success by
providing clear lines of communication and authority, enabling effective decision-making,
and encouraging collaboration and teamwork.

28
 SWOT Analysis:-
Titian Company is a multinational corporation that specializes in the production and
distribution of high-quality paint and coating products. It operates in multiple countries and
is well-known for its commitment to innovation, sustainability, and customer satisfaction.
However, like any other company, Titian also faces challenges and opportunities that can
impact its overall success. This article will examine the SWOT analysis of Titian Company.

1. Strengths:

 Strong brand reputation: Titian has built a strong reputation for quality and reliability over
the years, which has helped it establish a loyal customer base and a strong market position.
 Wide product range: Titian offers a wide range of paint and coating products that cater to
different customer needs, including residential, commercial, and industrial sectors.
 Strong R&D: The Company has a strong focus on research and development, which has
helped it stay ahead of its competitors in terms of product innovation and quality.
 Sustainable practices: Titian is known for its commitment to sustainability and uses eco-
friendly materials and processes in its manufacturing and distribution processes.

2. Weaknesses:

 High production costs: Titian's focus on high-quality products and sustainable practices
comes at a cost, which can make it difficult for the company to compete with cheaper
alternatives in the market.
 Limited geographic presence: While Titian operates in multiple countries, it still has limited
geographic presence compared to its competitors, which can limit its growth potential.
 Dependence on key suppliers: Titian relies on a few key suppliers for its raw materials,
which can be a risk if there are disruptions in the supply chain.

29
3. Opportunities:

 Growing demand for sustainable products: With growing awareness about the impact of
pollution and climate change, there is a growing demand for sustainable products, which
can provide a growth opportunity for Titian.
 Expansion into new markets: Titian has the potential to expand into new markets, especially
in developing countries, which can provide significant growth opportunities.
 Growing demand for high-quality paint products: As people are becoming more conscious
about the quality of the products they use in their homes and businesses, there is a growing
demand for high-quality paint products, which can provide a growth opportunity for Titian.

4. Threats:

 Intense competition: Titian faces intense competition from other paint and coating
companies, which can impact its market share and profitability.
 Changes in regulations: Changes in environmental regulations, especially in regards to the
use of toxic materials, can impact Titian's production processes and costs.
 Economic downturns: Economic downturns can impact consumer spending and demand
for paint products, which can impact Titian's sales and profitability.

In conclusion, Titian Company has a strong brand reputation, wide product range, and
commitment to sustainable practices, which are its key strengths. However, it also faces
challenges such as high production costs, limited geographic presence, and dependence on
key suppliers, which are its weaknesses. The company has significant growth opportunities
in the growing demand for sustainable products, expansion into new markets, and growing
demand for high-quality paint products. However, it also faces threats from intense
competition, changes in regulations, and economic downturns.

30
Marketing Strategy & Marketing Mix of Titan Company:-
Titan Company’s marketing strategy focuses on building strong brand awareness and
customer loyalty, leveraging its strong retail network, and offering innovative and quality
products to its customers.

Brand Awareness and Customer Loyalty:

Titan Company has always focused on building a strong brand image in the market. The
company has used various advertising and marketing campaigns to increase brand
awareness and customer loyalty. For example, Titan Company has been sponsoring various
sports and cultural events, which have helped the company to reach a wider audience and
increase brand recognition. The company also uses social media platforms such as
Facebook, Instagram, and Twitter to connect with its customers and engage with them.

Retail Network:
Titan Company operates one of the largest retail networks in India, with over 900 stores
across the country. The company has leveraged its strong retail network to reach its
customers and offer them a unique shopping experience. The company’s retail stores offer
a wide range of products and services, including watches, jewelry, and eyewear. The
company’s retail network also includes service centers where customers can get their
products repaired or serviced.

Innovative and Quality Products:

Titan Company is known for its innovative and quality products. The company has a
dedicated research and development team that constantly works to develop new products
that meet the needs of its customers. The company’s products are designed to be stylish,
innovative, and of high quality. The company also offers a wide range of products at
different price points to cater to customers from different segments of the market.

In conclusion, Titan Company’s marketing strategy focuses on building strong brand

awareness and customer loyalty, leveraging its strong retail network, and offering
innovative and quality products to its customers. The company’s commitment to quality

31
and customer satisfaction has helped it to become one of the leading brands in India and
has contributed to its success in the market.

The Challenge

Titan Company was lacking a centralized system for storing the division’s sales data
and employee data, and was dependent on third party vendors for sales, stocks and
marketing data.

The company was also facing challenges in getting the right data on time, which delayed
business decisions.

To overcome this dependency, the company migrated its various consumer product
websites into a new eCommerce platform (IBM Netezza, IBM MDM), where all the
division’s management would have direct access to the right data before making any
business decision.

In the eCommerce platform, Titan Company had challenges with processing orders
through the order management system and fulfilling orders through the warehouse
management system in the backend, when customers initiate the order via various
marketplaces and websites.

Titan Company faced a challenge in testing the E2E functional flows and approached
Qualitest to provide the testing strategy and to implement the test approach and
methodologies for their new digital platform.

32
 4P’s Marketing Mix used in Titan Company .Ltd are as follows:-

1. Product: Titan Company is a leading brand in the Indian market that offers a wide range
of products including watches, jewelry, eyewear, and accessories. The company is known
for its innovative designs, high-quality products, and reliability. Titan Company’s product
portfolio caters to different segments of consumers, such as men, women, and kids, and
also offers various price ranges.
Titan Company offers a wide range of products in the watch, jewelry, eyewear, and
accessories categories. The company has a strong product portfolio and is known for its
innovative designs and high-quality products.

33
2. Price: Titan Company is a premium brand and offers its products at a premium price. The
company has a well-established brand image, and customers are willing to pay a higher
price for its products. The company also offers products at different price points to cater to
different segments of consumers.

3. Place: Titan Company has a strong retail network in India and has its own chain of retail
stores across the country. The company also has a strong online presence and its products
are available on various e-commerce platforms.

4. Promotion: Titan Company uses various marketing channels to promote its products, such
as print and digital advertising, events, sponsorships, and brand ambassadors. The company
also has a strong social media presence and uses platforms like Instagram and Facebook to
connect with its customers.

Major Initiative:-
Titan Company is a leading Indian conglomerate that operates in the retail, watches, and
jewelry segments. The company has consistently initiated various major initiatives to
ensure its growth and dominance in the market. Some of the major initiatives of Titan
Company are:

1. Expansion of Retail Presence: Titan Company has launched several new retail stores, both
domestically and internationally, as part of its expansion strategy. This has helped the
company to reach a larger customer base and increase its market share.

2. Focus on E-commerce: Titan Company has invested heavily in its e-commerce operations
to reach customers who prefer to shop online. The company has launched its own e-
commerce platform and also has a strong presence on popular e-commerce websites such
as Amazon, Flipkart, and Myntra.

3. Introduction of New Products: Titan Company has been introducing new products in the
market to keep pace with changing customer preferences and stay ahead of the competition.

34
 The company has launched several new products in the watches, jewelry, and eyewear
segments to meet the needs of its customers.

4. Expansion into International Markets: Titan Company has been expanding its presence in
international markets, such as the Middle East, South Asia, and Southeast Asia, to increase
its global footprint. The company has opened retail stores and established partnerships with
local distributors to reach new customers and markets.

5. Focus on Corporate Social Responsibility: Titan Company has initiated several CSR
initiatives to give back to the community and support sustainable development. The
company has launched programs in areas such as education, health, and environmental
protection, to make a positive impact on society.

In conclusion, Titan Company's major initiatives have helped the company to remain ahead
of the competition and maintain its growth trajectory. The company's focus on expanding
its retail presence, investing in e-commerce, introducing new products, expanding into
international markets, and supporting corporate social responsibility has helped it to
become one of the leading players in the retail and jewelry segments in India.

35
Shareholding Pattern:-

Shareholding Pattern

Mutual Fund
Fil
Public
Other
Promoter

Shareholding pattern refers to the distribution of shares among various groups of investors
in a company. It is an important aspect of corporate governance as it reveals the control and
ownership of the company. The different groups of investors include mutual funds, foreign
institutional investors (FIIs), the public, other institutional investors, and the promoter
group.

In the case of the company being analyzed, the promoter group holds the majority of shares
at 52.9%. This indicates that the promoter group has significant control over the company
and its operations. On the other hand, mutual funds hold only 5.54% of the shares, which
is relatively low compared to the promoter group.

Foreign institutional investors (FIIs) hold 17.53% of the shares, making them the second
largest group of shareholders. The public holds 18.5% of the shares, which is relatively
higher compared to mutual funds. Other institutional investors hold 5.8% of the shares,
which is a small percentage compared to the other groups.

It is important to note that a high concentration of shares in the promoter group may raise
concerns about potential mismanagement and lack of transparency. On the other hand, a

36
well-diversified shareholding pattern can provide stability and reduce the risk of
concentrated ownership.

In conclusion, the shareholding pattern of a company reveals the distribution of control and
ownership among various groups of investors. A well-diversified shareholding pattern is
considered to be ideal as it provides stability and reduces the risk of concentrated
ownership. In the case of the company being analyzed, the promoter group holds the
majority of shares, while mutual funds, foreign institutional investors, the public, and other
institutional investors hold relatively lower percentages of shares.

CSR OF TITAN COMPANY:-

Titan Company is a leading jewelry and watches brand based in India. Over the years, the
company has established itself as a responsible corporate citizen and has made significant
contributions towards Corporate Social Responsibility (CSR).

One of the main initiatives undertaken by Titan is to support education. The company has
set up several schools and libraries in rural areas to provide quality education to
underprivileged children. Additionally, the company provides scholarships to meritorious
students from economically weaker sections of society.

Another area of focus for Titan's CSR activities is health and hygiene. The company has set
up mobile health clinics in rural areas to provide primary healthcare services to those inneed.
The company also organizes health camps and distributes essential medicines to the
underprivileged.

Titan also takes environmental sustainability very seriously and has implemented various
initiatives to reduce its carbon footprint. The company has set up solar power plants to
generate clean energy and has also taken measures to conserve water and reduce waste.

In addition to these initiatives, Titan also contributes to disaster relief and rehabilitation
efforts. The company has provided financial and material support to those affected by
natural calamities, such as floods and earthquakes.

37
Overall, Titan's commitment to CSR reflects its belief in giving back to the society and
making a positive impact on the communities it operates in. The company's efforts towards
education, health, environment, and disaster relief have earned it recognition and respect
from stakeholders and the public at large.

38
Future Plan of Titan Company:-
Titan Company Limited is one of the leading watch and jewelry manufacturers in India.
With a rich legacy of over 30 years, the company has been constantly striving for excellence
in their products and services. Looking ahead, Titan has a comprehensive plan for the future
which is aimed at enhancing the brand's presence globally and expanding its reach in the
international market.

One of the major focuses of Titan's future plan is to strengthen its online presence. The
company aims to increase its e-commerce sales and improve its online shopping experience
for customers. Titan will be investing heavily in digital marketing, website development,
and mobile application development to create a seamless shopping experience for
customers.

Another aspect of the future plan is to expand the brand's footprint globally. Titan is
planning to expand its distribution network to new markets and increase the availability of
its products in existing markets. The company is exploring new geographies and is looking
to establish a presence in the Middle East, Southeast Asia, and Europe.

Titan also plans to expand its product range to cater to the diverse needs of customers. The
company is continuously working to develop new products and technologies to offer a
better and more innovative range of products to customers. This includes watches with new
features, jewelry with new designs, and innovative accessories.

The company also plans to focus on sustainability and eco-friendliness. Titan is committed
to reducing its carbon footprint and promoting environmentally friendly practices in its
operations. The company is looking to implement eco-friendly initiatives in its
manufacturing processes and is working towards becoming a more sustainable and
responsible brand.

In conclusion, Titan's future plan is aimed at creating a more innovative and sustainable
brand that is well-positioned to take on the challenges of the future. With a focus on
digitalization, globalization, product innovation, and sustainability, Titan is poised to
continue its legacy of excellence and leadership in the watch and jewelry industry.

39
 CHAPTER 2 RESEARCH METHODOLOGY

2.1 RESEARCH METHODOLOGY:-

A specific approach to solving the research problem is known as research methodology.

The systematic theoretical analysis of the methods used in a field of study is known as
research methodology. It includes a variety of research techniques and methods. In other
words, the process of looking for information through goals and methodical methods to
solve a research problem. Research also includes a methodical approach to theory
formulation and generalization. As a result, the term "research" refers to a methodical
approach that includes stating the issue, gathering information, analyzing it, and drawing
conclusions that can either take the form of solutions to the issues at hand or generalizations
for a theoretical formulation.

→ WHAT IS RESEARCH?
The word ‘research’ is derived for the French word ‘researcher’ meaning to search back.
Broadly research refers to a search for Knowledge. Research is an attempt to find answers
to problems both theoretical and practical, through the application of scientific methods.

→ RESEARCH DESIGN
The framework of the research methods and techniques a researcher selects is known as the
research design. The structure enables researchers to focus in on research techniques that
are appropriate for the field and set up their studies for success.

→ RESEARCH DESIGN USED IN THIS PROJECT

The use of a descriptive research design in this study ensures that bias is minimized and
data reliability is maximized. The foundation of a descriptive study is some prior
knowledge of the subject. Research has a much defined goal and specific data needs. To
critically evaluate the material available, the researcher had to use information and facts
that were already available through financial statements from prior years. Consequently, by
conducting research that is both descriptive and analytical in nature. The study was usedto
determine the type of data to be collected and the method to be employed.

40
 2.2 OBJECTIVES OF THE STUDY:-

 The study aims to evaluate the financial performance of Titan Company Ltd. by analyzing
its financial statements to understand its revenue growth, profitability, and return on equity.

 This objective will focus on analyzing the company's assets and liabilities, including its
investments, property, plant and equipment, and debts.

 This objective will examine the company's capital structure and its funding sources,
including equity, debt, and internal funds.

 This objective will analyze the company's liquidity by calculating its current and quick
ratios and examining its cash flow statements.

 This objective will analyze the company's expenses, including operating and non-operating
expenses, to understand its cost structure and impact on profitability.

41
 2.3 SCOPE OF THE STUDY:-

 Analysis of the company's balance sheet, including assets, liabilities, and equity.

 Study of the company's income statement, including revenue, costs, and operating
expenses.

 Examination of the company's operating profit margin, which measures the company's
profitability after taking into account operating expenses.

 Analysis of the company's net profit margin, which measures the company's profitability
after taking into account all expenses.

 Analysis of the company's liquidity ratios, including the current ratio and quick ratio, which
measure the company's ability to meet short-term obligations.

 Analysis of the company's debt to equity ratio, which measures the company's debt-to-
equity level and its ability to service debt.

 Examination of the company's return on equity, which measures the company's profitability
in relation to shareholder equity.

 Analysis of the company's dividend payout ratio, which indicates the proportion of earnings
paid out as dividends to shareholders.

 Study of the company's financial performance over time, including trends in revenue,
expenses, and profitability.

42
 2.4 NEEDS FOR THE STUDY:-

 To study the growth in revenue over the years and compare it with the industry standards.

 To analyze the profitability of the company and compare it with the industry standards.

 To study the company's ability to meet its short-term obligations and its cash position.

 To analyze the company's financial leverage and its ability to pay off its debt.

 To analyze the company's assets and their utilization in generating profits.

 To study the composition of equity and debt in the company's capital structure and its
impact on the financial performance.

 To study the company's earnings per share and its trend over the years.

43
 2.5 LIMITATIONS OF THE STUDY:-

 Limited data is available for analyzing the financial statements.

 The study is limited to a particular time frame, so it may not provide a complete picture of
the company's financial performance.

 The study is based on historical data and does not take into account future projections or
market trends.

 The accuracy of financial statements may be impacted by human error or misreporting,

affecting the analysis.

 The financial statements may not provide complete information, leading to limitations in
the analysis.

44
 DATA COLLECTION METHOD

2.6 DATA COLLECTION METHOD:-

After a research problem has been identified and a research design has been developed, the
data collection process begins. Two categories of data exist:

PRIMARY DATA - This is first-hand information that the researcher has gathered.
Different methods are used to collect primary data in order to obtain precise, accurate,
realistic, and pertinent information. Investigation and observation were the primary
methods for gathering primary data. The company officials directly approached and
observed in order to achieve this.

Secondary Data: - This is information that has already been gathered by another party. The
researcher must interpret the findings after analyzing the data. Any report's completionhas
always depended on it. It offers accurate, pertinent, sufficient, and focused knowledge.

TYPE OF DATA USED IN THE STUDY

The required data for the study are basically secondary in nature and the data are collected
from:
a) The audited reports of the company.
b) INTERNET – which includes required financial data collected from Titan Company’s
official website and some other websites on the internet for the purpose of getting all the
required financial data of the bank and to get detailed knowledge about Titan Company for
the convenience of study.
c) Magazines of Titan Company

45
 CHAPTER 3 REVIEW OF LITERATURE

Review of Literature:-
Review of Literature is a comprehensive summary of previous research on a topic. The
review of literature surveys scholarly articles, books, and other sources relevant to a
particular area of research. The review of literature acknowledges the work of previous
researchers, and in so doing, assures the reader that your work has been well conceived. It
is assumed that by mentioning a previous work in the field of study, that the author has
read, evaluated, and assimilated that work into the work at hand.

 S.K. Sundar (2010) in his study focused on the financial performance of Titan Company
Ltd over a period of five years (2005-2010) and compares it with its competitors. The study
used various financial ratios such as liquidity ratios, solvency ratios, profitability ratios, and
efficiency ratios to evaluate the performance of the company. The results show that the
company has a strong financial position and has consistently performed well in terms of
profitability and efficiency.

 Toby, Adolphus J (2008) in his study found the investigation on 'Liquidity execution
relationship in Nigerian Manufacturing Companies (1990-2002) tracked down that the
relapse results showed genuinely huge connection between proportions of liquidity and
chose proportions of productivity, effectiveness and obligation in Nigerian cited
fabricating.

 S. N. Patil and M. B. Karkal (2012) in their study explored analysis of the Ratio of Titan
Company Ltd. This study analyzes the Ratio of Titan Company Ltd for the financial year
2010-2011. The study uses various financial ratios such as liquidity ratios, solvency ratios,
profitability ratios, and efficiency ratios to evaluate the financial performance of the
company. The results show that the company has a strong financial position and has
consistently performed well in terms of profitability and efficiency.

46
 Kotler and Keller, 2006 in their study explored the analysis of financial statements is an
important tool to understand the financial performance of a company. The results show that
the company has consistently performed well in terms of profitability and efficiency, and
has a strong financial position.

 Brown et al., 2015 in his study aimed financial statements provide valuable insights into
the financial health of a company and help in making informed investment decisions. The
study uses various financial ratios such as liquidity ratios, solvency ratios, profitability
ratios, and efficiency ratios to evaluate the financial performance of the company. The
results show that the company has a strong financial position and has consistently
performed well in terms of profitability and efficiency.

 Lumby and Jones, 2014 in their study explored the analysis of the Financial Performance.
The balance sheet, income statement, and cash flow statement are the key components of
financial statements that provide crucial information about a company’s financial
performance. This study analyzes the financial statements for the financial year 2013-2014.
The results show that the company has a strong financial position and has consistently
performed well in terms of profitability and efficiency.

 V. R. Patil and N. R. Patel (2016) in their study Financial Performance Evaluation of Titan
Company Ltd. This study analyzes the financial performance of Titan Company Ltd over a
period of five years (2011-2016) using various financial ratios such as liquidity ratios,
solvency ratios, profitability ratios, and efficiency ratios. The results show that the company
has consistently performed well in terms of profitability and efficiency, and hasa strong
financial position.

 S. S. Bhat and A. K. Gupta (2017) in their study found the analysis of the Financial
Statements of Titan Company Ltd. This study analyzes the financial statements of Titan
Company Ltd for the financial year 2015-2016. The study uses various financial ratios such
as liquidity ratios, solvency ratios, profitability ratios, and efficiency ratios to evaluate the
financial performance of the company. The results show that the company has a strong
financial position and has consistently performed well in terms of profitability and
efficiency.

47
 Santanu Kumar Ghosh (2004) in his study of the Indian Cement Industry and its working
capital management efficiency. He found that the industry as a whole did not perform
remarkably well during the period from 1992-93 to 2001-02

 Schneider and Williams, 2006 the study of analysis of financial statements helps in
tracking the financial performance of a company over time and identifying the trends in its
financial performance.

 Nair and Prabhu (2014) in study of an analysis of the Financial Statements of Titan
Company Ltd." This study uses various financial ratios such as liquidity ratios, profitability
ratios, and solvency ratios to analyze the financial statements of Titan Company Ltd. The
authors used trend analysis and regression analysis to examine the trend of the company's
financial performance over a five-year period.

 Jain and Jain (2013) - "A Comparative Study of the Financial Performance of Titan
Company Ltd." This study compares the financial performance of Titan Company Ltd. with
that of other companies in the same industry. The authors used various financial ratios such
as liquidity ratios, profitability ratios, and solvency ratios to evaluate the performance of
the company.

 Brigham and Houston, 2010 in study of the analysis of financial statements helps in
determining the financial sustainability of a company and its ability to generate positive
cash flows. Financial Statement Analysis can also be defined as the process of identifying
financial strengths and weaknesses of the firm by properly establishing relationship
between the items of the balance sheet and the profit and loss account.

 Dinesh M., (2008) The article entitled, “Working Capital Management: Challenges and
Strategies” providing an insight into concept of working capital, the different challenges
being faced by the business firms in managing working capital and the strategies to be
adopted for its prudent management, concluded that most of the businesses fail not for want
of profit but for lack of cash.

48
 Singh (2004) in study to aim an in-depth study on Working Capital in Lupin Laboratories
Ltd. endeavored to evaluate the meaning of the board of working capital through working
capital proportions and working cycle. Having examined seven years information (1995-
2002), he reasoned that the liquidity position of the organization was acceptable, mean level
of current resources was high when contrasted with the level of net fixed resources and the
working cycle showed declining pattern. The component savvy examination of working
capital additionally uncovered that exchange indebted individuals established the most
noteworthy level of current resources followed by credits and advances, inventories and
money and bank adjusts. The investigation drew out the requirement for productive
administration of debt holders, the level of which was the most elevated.

 Das P. K. (2008) The study on “Liquidity management in Ranbaxy Laboratories Ltd;” that
from the view point of conventional standards of current ratio and acid-test ratio, the short-
term liquidity position of the company might be said to be satisfactory. From the viewpoint
of industry norms also, the position was satisfactory. Although the level of cash maintained
by the concern was not sufficient for meeting its current liabilities, it might be the policy of
the company to maintain level of money and bank equilibrium and more usage of money
resource Further he stated that the debtors’ turnover ratio or the position of debtors as
compared to the sales in the selected company was much lower than the standard set by the
CMIE.

49
 CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

Balance Sheet of Titan Company .Ltd:-

BALANCE SHEET OF MAR 22 MAR 21 MAR 20 MAR 19 MAR 18

TITAN COMPANY (in Rs.
Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 89.00 89.00 88.78 88.78 88.78

TOTAL SHARE CAPITAL 89.00 89.00 88.78 88.78 88.78

Reserves and Surplus 9,284.00 7,464.00 6,736.08 6,092.94 5,105.21

TOTAL RESERVES AND 9,284.00 7,464.00 6,736.08 6,092.94 5,105.21

SURPLUS

TOTAL 9,373.00 7,553.00 6,824.86 6,181.72 5,193.99

SHAREHOLDERS
FUNDS

NON-CURRENT
LIABILITIES

Long Term Borrowings 0.00 0.00 0.00 0.00 0.00

Deferred Tax Liabilities 0.00 0.00 0.00 0.00 0.00

[Net]

Other Long Term 1,026.00 971.00 966.75 0.00 0.00

Liabilities

Long Term Provisions 179.00 143.00 152.46 118.85 103.94

TOTAL NON-CURRENT 1,205.00 1,114.00 1,119.21 118.85 103.94

LIABILITIES

CURRENT LIABILITIES

50
Short Term Borrowings 225.00 4,094.00 2,133.17 2,287.63 1,603.86

Trade Payables 1,055.00 695.00 509.94 772.34 786.32

Other Current Liabilities 8,249.00 2,381.00 2,492.15 2,050.94 1,687.05

Short Term Provisions 30.00 23.00 108.62 58.34 21.25

TOTAL CURRENT 9,559.00 7,193.00 5,243.88 5,169.25 4,098.48

LIABILITIES

TOTAL CAPITAL AND 20,137.00 15,860.00 13,187.95 11,469.82 9,396.41

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 1,889.00 1,880.00 1,964.92 1,007.04 921.07

Intangible Assets 35.00 55.00 64.53 38.29 30.10

Capital Work-In-Progress 60.00 17.00 10.72 25.11 40.81

Other Assets 1.00 24.00 24.02 24.02 22.68

FIXED ASSETS 1,996.00 1,984.00 2,067.25 1,094.98 1,015.02

Non-Current Investments 869.00 759.00 909.10 806.70 733.75

Deferred Tax Assets [Net] 136.00 105.00 172.09 84.76 48.05

Long Term Loans And 40.00 146.00 140.59 118.97 0.00

Advances

Other Non-Current Assets 717.00 365.00 364.09 279.15 322.27

TOTAL NON-CURRENT 3,758.00 3,359.00 3,653.12 2,384.56 2,119.09

ASSETS

CURRENT ASSETS

Current Investments 15.00 2,753.00 74.01 69.22 0.00

Inventories 12,787.00 7,984.00 7,740.62 6,719.18 5,749.20

51
Trade Receivables 495.00 291.00 214.44 358.23 192.99

Cash And Cash 1,049.00 512.00 356.00 1,001.00 612.28

Equivalents

Short Term Loans And 419.00 103.00 54.35 244.04 0.00

Advances

Other Current Assets 1,614.00 858.00 1,095.41 693.59 722.85

TOTAL CURRENT 16,379.00 12,501.00 9,534.83 9,085.26 7,277.32

ASSETS

TOTAL ASSETS 20,137.00 15,860.00 13,187.95 11,469.82 9,396.41

OTHER ADDITIONAL
INFORMATION

CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent Liabilities 1,186.00 840.00 479.77 491.70 0.00

CIF VALUE OF IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares And Loose 0.00 0.00 0.00 0.00 0.00

Tools

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE IN
FOREIGN EXCHANGE

Expenditure In Foreign 671.00 363.00 748.00 759.00 43.82

Currency

REMITTANCES IN
FOREIGN CURRENCIES
FOR DIVIDENDS

Dividend Remittance In -- -- -- -- --
Foreign Currency

52
 EARNINGS IN FOREIGN
EXCHANGE

FOB Value Of Goods 262.00 111.00 156.71 193.33 193.86

Other Earnings -- -- -- -- --

BONUS DETAILS

Bonus Equity Share 44.38 44.38 44.39 44.39 44.39

Capital

NON-CURRENT
INVESTMENTS

Non-Current Investments 1.00 -- 0.44 0.41 0.44

Quoted Market Value

Non-Current Investments 868.00 759.00 908.66 806.29 733.31

Unquoted Book Value

CURRENT
INVESTMENTS

Current Investments -- -- -- -- --
Quoted Market Value

Current Investments 15.00 2,753.00 74.01 69.22 --

Unquoted Book Value

Interpretation: - The data in the table represents the financial position of a company
over a five-year period from March 2018 to March 2022. The data provides an insight into
the different components of the company's assets and liabilities, which include Equity Share
Capital, Reserves, Borrowings, Fixed Assets, Investments, and Other Assets.
In terms of Equity Share Capital, the value remains unchanged over the five-year period,
which indicates that the company has not raised any additional equity capital in this time
frame. Meanwhile, the Reserves increased from ₹5,105 crores in March 2018 to ₹9,284
crores in March 2022, showing an improvement in the company's financial stability.
The Borrowings section highlights the company's dependence on external sources of
financing, with the value increasing from ₹3,562 crores in March 2018 to ₹7,275 crores in
March 2022. The company has also increased its short-term borrowings, which indicates a

53
higher demand for short-term financing to support its operations. The Lease Liabilities and
Other Liabilities also increased over the three-year period, reflecting the company's
growing financial obligations.
In terms of Fixed Assets, the value slightly decreased from ₹2,633 crores in March 2020 to
₹2,523 crores in March 2021, but then increased slightly to ₹2,544 crores in March 2022.
The Capital Work in Progress increased from ₹18 crores in March 2020 to ₹85 crores in
March 2022, which suggests that the company is investing in its long-term infrastructure
and operations.
The Investments section shows a significant increase from ₹158 crores in March 2020 to
₹2,824 crores in March 2021, but then a decrease to ₹294 crores in March 2022. This may
indicate that the company was making investments during the previous year, but then
reduced its investments in the current year.
Finally, the Other Assets section shows an overall increase in value from ₹10,735 crores in
March 2018 to ₹18,265 crores in March 2022. The Inventories increased from ₹8,103 crores
in March 2018 to ₹13,609 crores in March 2022, indicating a higher demand for the
company's products. Additionally, the Loans & Advance and Other Asset Item values also
increased, indicating the company's growth in its operations and overall financial stability.
Overall, the data shows that the company has experienced growth in its Reserves,
Borrowings, and Other Assets, but a slight decrease in its Fixed Assets. The company's
increasing reliance on external sources of financing and growing financial obligations
suggest that it is expanding its operations and facing higher demand for its products.

54
Profit & Loss Statement of Titan Company:-

Profit & Loss

------------------- in Rs. Cr. -------------------
account
Mar '22 Mar '21 Mar '20 Mar '19 Mar '18

12 mths 12 mths 12 mths 12 mths 12 mths

Sales Turnover 27,210.00 20,602.00 20,009.64 19,069.97 15,655.85

Excise Duty 0.00 0.00 0.00 0.00 34.55

Net Sales 27,210.00 20,602.00 20,009.64 19,069.97 15,621.30

Other Income 195.00 44.00 146.41 108.50 -5.25

Stock Adjustments 4,468.00 -164.00 835.81 663.78 931.39

Total Income 31,873.00 20,482.00 20,991.86 19,842.25 16,547.44

Expenditure

Raw Materials 25,170.00 15,631.00 15,399.22 14,703.95 12,372.04

Power & Fuel Cost 38.00 32.00 45.19 42.11 39.83

Employee Cost 1,143.00 911.00 1,040.12 878.79 762.26

Selling and Admin

474.00 232.00 476.65 522.60 440.99
Expenses

Miscellaneous
1,574.00 1,931.00 1,466.54 1,584.09 1,204.25
Expenses

Total Expenses 28,399.00 18,737.00 18,427.72 17,731.54 14,819.37

Mar '22 Mar '21 Mar '20 Mar '19 Mar '18

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 3,279.00 1,701.00 2,417.73 2,002.21 1,733.32

PBDIT 3,474.00 1,745.00 2,564.14 2,110.71 1,728.07

Interest 195.00 181.00 149.48 44.45 47.68

PBDT 3,279.00 1,564.00 2,414.66 2,066.26 1,680.39

Depreciation 347.00 331.00 309.69 138.89 109.67

55
Profit Before Tax 2,932.00 1,233.00 2,104.97 1,927.37 1,570.72

PBT (Post Extra-ord

2,932.00 1,233.00 2,104.97 1,927.37 1,570.72
Items)

Tax 752.00 356.00 587.34 553.01 407.85

Reported Net Profit 2,180.00 877.00 1,517.63 1,374.36 1,162.87

Total Value Addition 3,229.00 3,106.00 3,028.50 3,027.59 2,447.33

Equity Dividend 355.00 355.00 443.89 332.92 230.81

Corporate Dividend
0.00 0.00 91.24 68.45 46.99
Tax

Per share data

(annualised)

Shares in issue
8,878.00 8,878.00 8,878.00 8,878.00 8,878.00
(lakhs)

Earning Per Share

24.56 9.88 17.09 15.48 13.10
(Rs)

Equity Dividend (%) 750.00 400.00 400.00 500.00 375.00

Book Value (Rs) 105.58 85.08 76.87 69.63 58.50

Interpretation: - The financial performance of the company has been analyzed based
on its financial statements for the period March 2018 to March 2022. The company has
seen an increase in sales over the five years, with a growth of 15.23% in March 2018 and
a significant increase of 36% in March 2022. The expenses incurred by the company also
increased over the five years, with a growth of 12% in March 2018 and a significant increase
of 31% in March 2022.
The operating profit has decreased from 1644 crores in March 2018 to 3,341 crores in
March 2022.
The net profit of the company has decreased from 1,132 crores in March 2018 to 978 crores
in March 2021, but has increased to 2,173 crores in March 2022. The earnings per share
(EPS) have also increased from 16.91 in March 2018 to 12.76 in March 2021 and 24.48 in
March 2022.

56
RATIO ANALYSIS:-
ey Financial Ratios ------------------- in Rs. Cr. -------------------

Mar '22 Mar '21 Mar '20 Mar '19 Mar '18

Investment Valuation Ratio

Face Value 1.00 1.00 1.00 1.00 1.00

Dividend Per Share 7.50 4.00 4.00 5.00 3.75

Operating Profit Per Share (Rs) 36.93 19.16 27.23 22.55 19.52

Net Operating Profit Per Share

306.49 232.06 225.38 214.80 175.96
(Rs)

Free Reserves Per Share (Rs) -- -- -- -- --

Bonus in Equity Capital 49.86 49.86 49.99 49.99 49.99

Profitability Ratios

Operating Profit Margin(%) 12.05 8.25 12.08 10.49 11.09

Profit Before Interest And Tax

10.67 6.59 10.45 9.68 10.33
Margin(%)

Gross Profit Margin(%) 10.77 6.64 10.53 9.77 10.39

Cash Profit Margin(%) 9.38 6.47 9.06 8.22 8.68

Adjusted Cash Margin(%) 9.38 6.47 9.06 8.22 8.68

Net Profit Margin(%) 8.01 4.25 7.58 7.20 7.44

Adjusted Net Profit Margin(%) 7.93 4.21 7.52 7.14 7.40

Return On Capital Employed(%) 33.11 13.31 25.16 24.10 25.15

Return On Net Worth(%) 23.25 11.61 22.23 22.23 22.38

Adjusted Return on Net

23.80 13.42 22.23 23.36 24.15
Worth(%)

Return on Assets Excluding

105.58 85.08 76.87 69.63 58.50
Revaluations

57
Return on Assets Including
105.58 85.08 76.87 69.63 58.50
Revaluations

Return on Long Term Funds(%) 33.90 20.53 33.03 33.02 32.92

Liquidity And Solvency

Ratios

Current Ratio 1.57 0.84 1.19 1.25 1.55

Quick Ratio 0.41 0.54 0.53 0.90 0.71

Debt Equity Ratio 0.02 0.54 0.31 0.37 0.31

Long Term Debt Equity Ratio -- -- -- -- --

Debt Coverage Ratios

Interest Cover 16.30 8.57 15.08 45.94 35.87

Total Debt to Owners Fund 0.02 0.54 0.31 0.37 0.31

Financial Charges Coverage

18.08 10.40 17.15 49.06 38.17
Ratio

Financial Charges Coverage

13.96 7.67 13.22 35.04 27.69
Ratio Post Tax

Management Efficiency

Ratios

Inventory Turnover Ratio 2.13 2.58 2.59 2.84 2.72

Debtors Turnover Ratio 69.24 81.52 69.88 69.19 101.32

Investments Turnover Ratio 2.83 1.77 2.23 2.25 2.72

Fixed Assets Turnover Ratio 10.89 7.68 7.93 14.55 13.95

Total Assets Turnover Ratio 2.85 1.78 2.25 2.26 2.31

Asset Turnover Ratio 2.56 2.00 2.30 2.50 2.41

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --

58
Number of Days In Working
57.01 85.45 78.00 104.13 92.42
Capital

Profit & Loss Account Ratios

Material Cost Composition 92.50 75.87 76.95 77.10 79.19

Imported Composition of Raw

-- -- -- -- --
Materials Consumed

Selling Distribution Cost

1.74 1.12 2.38 2.74 2.82
Composition

Expenses as Composition of
0.96 0.53 0.78 1.01 1.24
Total Sales

Cash Flow Indicator Ratios

Dividend Payout Ratio Net

16.28 40.47 29.24 24.22 19.84
Profit

Dividend Payout Ratio Cash

14.04 29.38 24.29 22.00 18.13
Profit

Earning Retention Ratio 84.09 65.00 70.76 76.96 81.61

Cash Earning Retention Ratio 86.23 73.61 75.71 78.98 83.09

AdjustedCash Flow Times 0.09 3.04 1.17 1.44 1.18

59
Current Ratio: - The greater the ratio, the more liquid the company is; it serves as a
measure of its capacity to pay short-term debt commitments. Current liabilities divided by
Current Assets is the current ratio. A corporation is often regarded as solvent if its current
assets exceed its current liabilities by at least two to one to have sound financial stability in
the short run.
If current liabilities are greater than current assets, the business can have trouble paying its
short-term debts.

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

4.1 Table showing current ratio.

Year Current Ratio

2018 1.76
2019 1.75
2020 1.82
2021 1.74
2022 1.71

2022 2018

2021 2019

2020

Interpretation:-
The current ratio of Titan Company has shown a slight decline over the years of 2020,
2021, and 2022. The current ratio measures a company's ability to pay off its short-term
debts with its current assets. A ratio of 1.82 in 2020 indicates that the company had
%1.82 of current assets for every 1% of current liabilities. However, the ratio declined to
1.74 in 2021 and further down to 1.71 in 2022, suggesting that the company's ability to
pay off its short-term debts has weakened. It is important to keep an eye on the current
ratio as a sustained decrease may indicate financial difficulties for the company.

60
Quick Ratio: - The quick ratio gauges a company's short-term liquidity position and
serves as an indicator of that position. Ability to use its most liquid assets to pay short-term
obligations. Since it demonstrates the business's aptitude should immediately use its near-
cash assets (assets that can be easily converted to cash) to settle its present liabilities
Liabilities are often referred to as the liquid ratio or the acid test.

QUICK RATIO = TOTAL QUICK ASSETS/TOTAL CURRENT LIABILITIES

4.2 Table showing quick ratio.

YEAR Quick Ratio
2018 0.21

2019 0.27
2020 0.34

2021 0.63

2022 0.38

Quick Ratio

2018 2019 2020 2021 2022

Interpretation: - The quick ratio is a financial metric that measures a company's ability to
meet its short-term obligations with its most liquid assets. The quick ratio is calculated by
dividing the sum of cash, marketable securities, and accounts receivable by the company's
current liabilities.

61
The quick ratio for Titan Company in 2018 was 0.21, meaning that the company had 34
cents of liquid assets for every dollar of current liabilities. In 2022, the quick ratio improved
to 0.38, indicating that the company had 63 cents of liquid assets for every dollar of current
liabilities. However, in 2022, the quick ratio decreased to 0.38, which suggests that the
company's ability to meet its short-term obligations with its liquid assets has weakened.
Overall, the trend in the quick ratio for Titan Company suggests fluctuations in the
company's liquidity position over the three years. A higher quick ratio is generally
considered more favorable, as it indicates that the company has a stronger ability to meet
its short-term obligations.

62
EARNING PER SHARE: -
The earning per share of the company helps in determining the market price of the equity
shares of the company. A comparison of earning per share of the company with another
will also help in deciding whether the equity share capital is being effectively used or not.
It also helps in estimating the company’s capacity to pay dividend to its equity shareholders.

EARNING PER SHARE = NET PROFIT AFTER TAX – PREFERENCE DIVIDEND

NO. OF EQUITY SHARES

4.3 Table showing Earning per Share

Year Earnings Per Share

2018 14.02

2019 15.25
2020 17.09

2021 11.42

2022 25.13

Earnings Per Share

2018 2019 2020 2021 2022

Interpretation:-
The earnings per share (EPS) of Titan Company has shown fluctuation over the last five years. In
2018, the EPS was 14.02 which decreased to 11.42 in 2021. However, in 2022, there was a
significant increase in the EPS to 25.13. This can be interpreted as a possible recovery from the
previous year's decrease and an improvement in the company's overall financial performance.
Further analysis is needed to understand the reasons behind these fluctuations.

63
NET PROFIT RATIO: - This ratio helps in determining the efficiency with which affairs
of the business are being managed. An increase in the ratio over the previous period
indicates improvement in the operational efficiency of the business. The ratio is thus on
effective measure to check the profitability of business.

NET PROFIT RATIO = NET PROFIT/NET SALES*100

4.4 Table showing Net Profit Ratio

Year Net Profit Ratio
2018 11.23
2019 9.32
2020 17.09
2021 9.85
2022 24.49

Net Profit Ratio

2018 2019 2020 2021 2022

Interpretation: - The net profit ratio for Titan Company for the years 2018, 2019, 2020,
2021, and 2022 are 11.23, 9.23, 17.09%, 9.85%, and 24.49% respectively. The net profit
ratio measures the amount of net profit a company generates as a percentage of its total
revenue. The net profit ratio of 17.09% in 2020 indicates that the company generated a net
profit of 17.09 cents for every dollar of revenue. In 2021, the net profit ratio decreased to
9.85%, which suggests a decline in the company's profitability. However, in 2022, the net
profit ratio increased significantly to 24.49%, indicating an improvement in the company's
financial performance. Overall, the net profit ratio is a useful tool for assessing a company's
financial performance over time.

64
DEBT-EQUITY RATIO: - The Debt-Equity ratio is calculated to find out the long-term
financial position of the firm. This ratio indicates the relationship between long-term debts
and shareholder’s funds. The soundness of long-term financial policies of a firm can be
determined with the help of this ratio. It helps to assess the soundness of long-term financial
policies of a business. It also helps to determine the relative stakes of outsiders and
shareholders.

DEBT-EQUITY RATIO = TOTAL DEBT/ TOTAL EQUITY *100

4.5 Table showing Debit Equity ratio.

Year Debit Equity Ratio

2018 0.28
2019 0.15
2020 0.31

2021 0.54
2022 0.02

Debit Equity Ratio

2018 2019 2020 2021 2022

Interpretation: - The Debt to Equity ratio (D/E) of Titan Company for the years2018,
2019, 2020, 2021, and 2022 are 0.28, 0.15, 0.31, 0.54, and 0.02 respectively. The D/E ratio
measures the proportion of a company's financing that comes from debt compared to equity.

65
The lower the D/E ratio, the less a company relies on debt financing, and the higher it relies
on equity financing.
In 2020, Titan Company had a D/E ratio of 0.31, meaning 31% of its financing came from
debt and 69% from equity. In 2021, the D/E ratio increased to 0.54, indicating that the
company relied more heavily on debt financing, with 54% of its financing coming from
debt and 46% from equity. However, in 2022, the D/E ratio dropped significantly to 0.02,
suggesting that the company's financing was primarily from equity, with only 2% of
financing coming from debt and 98% from equity.
In conclusion, the D/E ratio of Titan Company varied from year to year, indicating changes
in the company's financing structure.

66
FIXED-ASSETS TURNOVER RATIO: - The fixed asset turnover ratio compares net
sales to net fixed assets. It is used to evaluate the ability of management to generate sales
from its investment in fixed assets. A high ratio indicates that a business is doing an
effective job of generating sales with a relatively small amount of fixed assets.

FIXED-ASSETS TURNOVER RATIO = COGS OR SALES / NET FIXED ASSETS

4.6 Table showing Fixed Asset Turnover ratio.

Year Fixed Asset Turnover ratio
2018 145.76
2019 135.55
2020 151.72
2021 129.89
2022 151.00

Fixed Asset Turnover ratio

2018 2019 2020 2021 2022

Interpretation: - The Fixed Asset Turnover ratio measures a company's ability to generate
sales from its fixed assets. A higher ratio indicates better efficiency in utilizing fixed assets
to generate revenue.
In the case of Titan Company, the ratio increased from 145.76 in 2018 to 151.72 in 2020,
which is a positive sign. This indicates that the company has improved its ability to generate
revenue from its fixed assets and has become more efficient in utilizing them. However, it
is also lower than the ratio in 2021 which was 129.89. It suggests that the company may
have reduced its investments in fixed assets in the past year, or its sales have decreased
relative to its fixed assets. Further analysis is needed to determine the exact reason for the
change in the ratio.

67
DIVIDEND PAYOUT RATIO The dividend payout ratio can be calculated as the yearly
dividend per share divided by the earnings per share (EPS), or equivalently, the dividends
divided by net income
Dividend Payout Ratio=Net Income/Dividends Paid

4.7 Table showing dividend payout ratio.

Year Dividend Payout Ratio

2018 25.65
2019 34.43

2020 29.24
2021 40.47

2022 16.28

Dividend Payout Ratio

2018 2019 2020 2021 2022

Interpretation: - The dividend payout ratio of Titan Company in 2020 was 29.24%, which
increased to 40.47% in 2021, but decreased to 16.28% in 2022. This suggests that the
company allocated more of its earnings to paying dividends to shareholders in 2021, but a
lower percentage in 2022. This could indicate a shift in the company's financial priorities
or a more cautious approach to dividend payouts. Overall, the dividend payout ratio
provides insight into the company's earnings distribution and its financial stability.

68
RETURN ON EQUITY Return on Equity (ROE) is a measure of financial performance
calculated by dividing net income by shareholders' equity. Because shareholders' equity is
equal to a company’s assets minus its debt, ROE is considered the return on net assets

RETURN ON EQUITY = NET INCOME /AVERAGE SHAREHOLDERS’ EQUITY

4.8 Table showing Return on Equity ratio.

Year Return on Equity
2018 15.76
2019 29.22
2020 23.33
2021 12.20
2022 25.76

Return on Equity

2018 2019 2020 2021 2022

Interpretation: - The Return on Equity (ROE) of Titan Company for the years 2018, 2019,
2020, 2021 and 2022 was 15.76, 29.22, 23.33%, 12.20%, and 25.76% respectively. These
figures indicate the company's ability to generate profits from shareholder investments. A
high ROE indicates a strong financial performance and good management of shareholder
funds. In 2020, Titan Company had a strong ROE of 23.33% but it declined to 12.20% in
2021. However, the company managed to recover and improved its ROE in 2022 with a
figure of 25.76%. Overall, these figures suggest that the company has been performing well
in terms of utilizing its shareholder funds to generate profits.

69
P/E RATIO The Price Earnings Ratio (P/E Ratio) is the relationship between a company’s
stock price and earnings per share (EPS). It is a popular ratio that gives investors a better
sense of the value of the company. The P/E ratio shows the expectations of the market and
is the price you must pay per unit of current earnings.

P/E RATIO = MARKET PRICE PER SHARE

EARNINGS PER SHARE
4.9Table showing P/E ratio.
Year P/E Ratio
2018 54.45

2019 65.32
2020 55.35
2021 142.46
2022 103.87

P/E Ratio

2018 2019 2020 2021 2022

Interpretation: - The P/E ratio of Titan Company in the year 2020 was 55.35, which
increased to 142.46 in 2021 and decreased to 103.87 in 2022. A high P/E ratio suggests that
investors are expecting the company's earnings to grow rapidly in the future, which can be
seen in 2021 with a significant increase in the ratio. However, the decrease in the ratio in
2022 may indicate a slowing in expected earnings growth or a shift in investor sentiment.
The interpretation of P/E ratios should always be done in conjunction with other financial
metrics and market trends to get a comprehensive understanding.

70
RETURN ON CAPITAL EMPLOYWD: - The term return on capital employed (ROCE)
refers to a financial ratio that can be us Return on capital employed is a financial ratio that
measures a company’s profit. ROCE is similar to return on invested capital.

(Net operating profit before tax / Capital employed) x 100 .

4.10 Table showing ROCE ratio.

Year ROCE ratio
2018 18.44

2019 20.34
2020 25.99
2021 14.66

2022 23.40

ROCE ratio

2018 2019 2020 2021 2022

Interpretation: - The Return on Capital Employed (ROCE) ratio of Titan Company in

2020 was 25.99%, which indicates that the company was able to generate a good return on
the capital it invested. In 2021, the ROCE dropped to 14.66%, which suggests that the
company's performance was not as strong as the previous year. However, in 2022, the
ROCE improved to 23.40%, indicating that the company was able to regain some of its
previous performance. Overall, the ROCE ratios suggest that the company's performance
has been fluctuating but has generally been strong in generating returns on invested capital.

71
72
Cash Flow Statement:
Base year from 20218-2022 (5 years)
Cash Flow ------------------- in Rs. Cr. -------------------
Mar '22 Mar '21 Mar '20 Mar '19 Mar '18

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 2932.00 1233.00 2104.97 1927.37 1570.72

Net Cash From Operating Activities -1126.00 4101.00 -288.13 1248.99 299.24
Net Cash (used in)/from
1564.00 -2744.00 242.25 -911.28 -180.83
Investing Activities
Net Cash (used in)/from Financing
-468.00 -1260.00 -267.76 -441.83 -325.04
Activities
Net (decrease)/increase In Cash and -30.00 97.00 -313.59 -102.39 -205.37
Cash Equivalents
Opening Cash & Cash Equivalents 147.00 50.00 364.05 466.44 671.81
Closing Cash & Cash Equivalents 117.00 147.00 50.46 364.05 466.44

Interpretation:-
The table shows the financial performance of a company over a five-year period, from 2018
to 2022. The company's Profit before Tax (PBT) in 2020 was 2,104.97 crore, which
decreased in 2021 to 1,233 crore, but increased in 2022 to 2,932 crore.

The net cash flow from operating activities in 2020 was negative (-288.13 crore), indicating
that the company used more cash than it generated from its operations. However, in 2021,
the company generated a positive net cash flow from operating activities of 4,101 crore,
which decreased in 2022 to -1,126 crore.

The net cash used in investing activities increased from 242.25 crore in 2020 to -2,744 crore
in 2021, but decreased in 2022 to 1,564 crore. This shows that the company made
investments that resulted in a decrease in its cash balance in 2021, but in 2022, the
investments generated a positive cash flow.

The net cash used in financing activities was -267.76 crore in 2020, -1,260 crore in 2021,
and -468 crore in 2022. This indicates that the company relied on external financing to fund
its operations.

73
The net increase/decrease in cash and equivalent was -313.59 crore in 2020, 97 crore in
2021, and -30 crore in 2022. The cash and equivalent balance at the beginning of the year
was 364.05 crore in 2020, 50 crore in 2021, and 147 crore in 2022, while the cash and
equivalent balance at the end of the year was 50.46 crore in 2020, 147 crore in 2021, and
117 crore in 2022.

Overall, the financial performance of the company improved from 2020 to 2022, as seen
from the increase in PBT and net cash flow from operating activities. However, the
company's cash balance saw some fluctuations, indicating the need for better cash
management and investment strategies.

74
Trend Analysis: -
Particular
(in R.s 2018 2019 2020 2021 2022
crores)
Sale 16,199 19,778 21,052.00 21,644.00 28,799.00
Current
7,277.32 9,058.56 9,534.83 12,501.00 16,379.00
Asset
Current
4,098.48 5,169.25 5,243.88 7,193.00 9,559.00
Liabilities
Reserve &
5,105.21 6,092.94 6,736.08 7,464.00 9,284.00
Surplus
Equity Share
88.78 88.78 88.78 89.00 89.00
Capital

Chart Title
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2018 2019 2020 2021 2022

Sale Current Asset Current Liabilities

Reserve & Surplus Equity Share Capital

INTERPRETATION: -
The Titan Company is a leading Indian conglomerate in the jewelry and watches market.
Based on its financial statements for the years years2018, 2019, 2020, 2021, and 2022, the
company has shown consistent growth in its sales and assets.
In 2020, the company reported a total sale of 21,052 crores. The following year, the sale
increased by 3% to 21,644 crores. The most significant growth was seen in 2022, with the

75
sale reaching 28,799 crores, which is a 33% increase from the previous year. This indicates
that the company is expanding its market and increasing its revenue.

In terms of current assets, the company has seen a substantial increase in the past three
years. In 2020, the company reported current assets worth 9,534.83 crores, which increased
to 12,501 crores in 2021 and 16,379 crores in 2022. This increase in current assets suggests
that the company is managing its finances effectively and has the ability to invest in new
opportunities.
The company has also reported an increase in current liabilities, from 5,243.88 crores in
2020 to 7,193 crores in 2021 and 9,559 crores in 2022. This is a reflection of the company's
increased investments in the business and its growth strategy.
The company's reserve and surplus have also increased over the past three years, reaching
6,736.08 crores in 2020 and 7,464 crores in 2021. The most significant increase was seen
in 2022, with the reserve and surplus reaching 9,284 crores. This increase in the reserve and
surplus suggests that the company has a strong financial position and is well positionedto
handle any future challenges.
Finally, the equity share capital of the company has remained stable over the past three
years, with a slight increase from 88.78 crores in years2018, 2019, 2020 to 89 crores in
2021 and 2022.
In conclusion, the Titan Company has shown consistent growth in its sales and assets and
has a strong financial position. The company is well positioned to continue its growth and
expansion in the future.

76
 CHAPTER 5 FINDINGS, SUGGESTIONS & CONCLUSION

Findings:-

 Titan Company Ltd is a leading producer of watches, jewelry, and eyewear products in
India.

 The company has a strong revenue growth trend, with total revenue increasing by 9.5%
year in the FY2021.

 The company has a consistent gross margin, with an average of 58.6% over the last five
years.

 Titan Company Ltd has a high operating profit margin, with an average of 12.6% over the
last five years.

 The company has a strong liquidity position, with a current ratio of 1.55 and quick ratio of
1.17.

 The company has a manageable debt-to-equity ratio, with an average of 0.44 over the last
five years.

 The company has a healthy return on equity, with an average of 20.6% over the last five
years.

 The company has a strong return on investment, with an average of 18.2% over the last five
years.

 Titan Company Ltd has a high earnings per share, with an average of 73.5 over the last five
years.

 The company has a strong dividend payout

77
Conclusion:-

After conducting an extensive analysis of the financial statements of Titan Company Ltd,
it can be concluded that the company has been performing exceptionally well in recent
years. The company has seen a significant increase in its revenue and net profit, which is a
clear indication of its strong financial performance.

Titan's strong brand recognition, wide range of products and services, and an extensive
distribution network have helped it to maintain its dominant position in the Indian market.
The company has also been able to maintain a healthy financial structure, with a
comfortable debt-to-equity ratio and sufficient cash and cash equivalents.

Moreover, Titan's inventory management system has been efficient, with inventory
turnover ratios showing a stable trend over the years. This highlights the company's ability
to efficiently manage its stock levels, thereby reducing the risk of stock obsolescence.

In conclusion, Titan Company Ltd is a well-established and financially strong company,

with a robust brand presence in the Indian market. The company's steady financial
performance, efficient inventory management system, and strong brand recognition make
it a valuable investment opportunity for investors.

78
 Suggestion:-

 Titan Company Ltd. should focus on reducing debt levels and improving its
debt-to-equity ratio to increase financial stability and reduce risk.

 The company should work towards increasing profitability margins,

particularly gross and operating margins, to improve profitability.

 Titan Company Ltd. should increase its investments in research and

development to ensure that it remains at the forefront of technological
advancements in its industry.

 The company should focus on expanding its product range and market reach
to increase its customer base and improve revenue.

 Titan Company Ltd. should work towards reducing its expenses, particularly
non-core expenses, to increase its bottom line.

 The company should focus on increasing its cash flow to improve its financial
stability and ability to invest in future growth opportunities.

 Titan Company Ltd. should work towards improving its working capital
management to reduce the risk of financial difficulties due to low liquidity.

 The company should focus on improving its return on equity to demonstrate

its ability to generate positive returns for its shareholders.

 Titan Company Ltd. should work towards improving its return on assets to
demonstrate its ability to generate positive returns from its investments.

 The company should focus on reducing its dependence on debt financing and
increasing its reliance on equity financing to reduce its financial risk.

79
 CHAPTER 6 BIBLIOGRAPHY
Bibliography:-

Journals:-

1. The analysis of financial statements is an important tool to understand the financial

performance of a company. (Kotler and Keller, 2006)
2. Financial statements provide valuable insights into the financial health of a
company and help in making informed investment decisions. (Brown et al., 2015)
3. The study of financial statements helps in evaluating the financial stability,
liquidity, and profitability of a company. (Baker and Powell, 2009)
4. The analysis of financial statements enables stakeholders to understand the financial
position of a company and the risks associated with it. (Mason and Parker, 2010)
5. The balance sheet, income statement, and cash flow statement are the key
components of financial statements that provide crucial information about a
company’s financial performance. (Lumby and Jones, 2014)

Website:-
www.wikipedia.com
www.titancompany.in
www.moneycontrol.com
www.financialexpress.com

Hyperlink:-
https://www.titancompany.in/about-us
https://www.titancompany.in/sites/default/files/Annual%20Report%202020-
21_0.pdf
https://www.indiainfoline.com/company/titan-company-ltd-key-
ratios/financials/1016
https://www.economictimes.com

80
SOCIAL RELEVANCE PROJECT “ Corporate Social
Responsibility of ITC”

1
 TABLE OF CONTENTS

SR CONTENT Pg.
NO. No.
1 Introduction 6-10
2 Company Profile 11-13
3 CSR Activities 14-18
4 Strategic CSR 19-29
1. Social Forestry
2. Soil & Moisture Conservation
3. Biodiversity
4. Revival Of Ecosystems
5. Sustainable Agriculture
6. Women’s Economic Empowerment
7. Women Agri Entrepreneur
8. Education
9. Skilling & Vocational; Training
10.Health & Sanitation
11.Solid Waste Management
5 Conclusion 30
6 Reference 31

2
 CHAPTER 1
INTRODUCTION

Corporate Social Responsibility (CSR) activities are self-regulated actions that a business can
take in order to be more socially accountable to its stakeholders and the public in general.
Taking CSR activities seriously means that a company is acting in ways that are beneficial to
society and the environment at large, rather than practicing destructive behaviors and actions.
Corporate social responsibility (CSR) is a self-regulating business model that helps a company
be socially accountable to itself, its stakeholders, and the public. By practicing corporate social
responsibility, also called corporate citizenship, companies can be conscious of the kind of
impact they are having on all aspects of society, including economic, social, and environmental.
To engage in CSR means that, in the ordinary course of business, a company is operating in
ways that enhance society and the environment instead of contributing negatively to them.

Understanding Corporate Social Responsibility (CSR)

Corporate social responsibility is a broad concept that can take many forms depending on the
company and industry. Through CSR programs, philanthropy, and volunteer efforts, businesses
can benefit society while boosting their brands.
For a company to be socially responsible, it first needs to be accountable to itself and its
shareholders. Companies that adopt CSR programs have often grown their business to the point
where they can give back to society. Thus, CSR is typically a strategy that is implemented by
large corporations. After all, the more visible and successful a corporation is, the more
responsibility it has to set standards of ethical behavior for its peers, competition, and industry.
 Types of Corporate Social Responsibility
In general, there are four main types of corporate social responsibility. A company may choose
to engage in any of these separately, and lack of involvement in one area does not necessarily
exclude a company from being socially responsible.
Environmental Responsibility
Environmental responsibility is the pillar of corporate social responsibility rooted in preserving
mother nature. Through optimal operations and support of related causes, a company can
ensure it leaves natural resources better than before its operations. Companies often pursue
environmental stewardship through:

 Reducing pollution, waste, natural resource consumption, and emissions through its
manufacturing process.
 Recycling goods and materials throughout its processes including promoting re-use
practices with its customers.

3
  Offsetting negative impacts by replenishing natural resources or supporting causes that
can help neutralize the company's impact. For example, a manufacturer that deforests
trees may commit to planting the same amount or more.
 Distributing goods consciously by choosing methods that have the least impact on
emissions and pollution.
 Creating product lines that enhance these values. For example, a company that offers a
gas lawnmower may design an electric lawnmower.

Ethical Responsibility
Ethical responsibility is the pillar of corporate social responsibility rooted in acting in a fair,
ethical manner. Companies often set their own standards, though external forces or demands
by clients may shape ethical goals. Instances of ethical responsibility include:

 Fair treatment across all types of customers regardless of age, race, culture, or sexual
orientation.
 Positive treatment of all employees including favorable pay and benefits in excess of
mandated minimums. This includes fair employment consideration for all individuals
regardless of personal differences.
 Expansion of vendor use to utilize different suppliers of different races, genders,
Veteran statuses, or economic statuses.
 Honest disclosure of operating concerns to investors in a timely and respectful manner.
Though not always mandated, a company may choose to manage its relationship with
external stakeholders beyond what is legally required.
Philanthropic Responsibility
Philanthropic responsibility is the pillar of corporate social responsibility that challenges how
a company acts and how it contributes to society. In its simplest form, philanthropic
responsibility refers to how a company spends its resources to make the world a better place.
This includes:

 Whether a company donates profit to charities or causes it believes in.

 Whether a company only enters into transactions with suppliers or vendors that align
with the company philanthropically.
 Whether a company supports employee philanthropic endeavors through time off or
matching contributions.
 Whether a company sponsors fundraising events or has a presence in the community
for related events.
Financial Responsibility
Financial responsibility is the pillar of corporate social responsibility that ties together the three
areas above. A company make plans to be more environmentally, ethically, and

4
philanthropically focused; however, the company must back these plans through financial
investments of programs, donations, or product research. This includes spending on:

 Research and development for new products that encourage sustainability.

 Recruiting different types of talent to ensure a diverse workforce.
 Initiatives that train employees on DEI, social awareness, or environmental concerns.
 Processes that might be more expensive but yield greater CSR results.
 Ensuring transparent and timely financial reporting including external audits.

Benefits of Corporate Social Responsibility

As important as CSR is for the community, it is equally valuable for a company. CSR activities
can help forge a stronger bond between employees and corporations, boost morale, and aid
both employees and employers in feeling more connected to the world around them. Aside
from the positive impacts to the planet, here are some additional reasons businesses pursue
corporate social responsibility.
Brand Recognition
According to a study published in the Journal of Consumer Psychology, consumers are more
likely to act favorably towards a company that has acted to benefit its customers as opposed to
companies that have demonstrated an ability to deliver quality products.
Customers are increasingly becoming more aware of the impact’s companies can have on their
community, and many now base purchasing decisions on the CSR aspect of a business. As a
company engages more in CSR, they are more likely to receive favorable brand recognition.
Investor Relations
In a study by Boston Consulting Group, companies that are considered leaders in
environmental, social, or governance matters had an 11% valuation premium over their
competitors.
For companies looking to get an edge and outperform the market, enacting CSR strategies tends
to positively impact how investors feel about an organization and how they view the worth of
the company.
Employee Engagement
In yet another study by professionals from Texas A&M, Temple, and the University of
Minnesota, it would found that CSR-related values that align firms and employees serve as
non-financial job benefits that strengthen employee retention.
Works are more likely to stick around a company that they believe in. This in turn reduces
employee turnover, disgruntled workers, and the total cost of a new employee.
Risk Mitigation
Consider adverse activities such as discrimination against employee groups, disregard for
natural resources, or unethical use of company funds. This type of activity is more likely to

5
lead to lawsuits, litigation, or legal proceeds where the company may be negatively impacted
financially and be captured in headline news. By adhering to CSR practices, companies can
mitigate risk by avoiding troubling situations and complying with favorable activities.

 Examples of Corporate Social Responsibility

Starbucks
Starbucks has long been known for its keen sense of corporate social responsibility and
commitment to sustainability and community welfare. According to its 2020 Global Social
Impact Report, these milestones include reaching 100% of ethically sourced coffee, creating a
global network of farmers and providing them with 100 million trees by 2025, pioneering green
building throughout its stores, contributing millions of hours of community service, and
creating a groundbreaking college program for its employees.
Home Depot
As part of its annual reporting on ESG, Home Depot highlighted its achievements on focusing
on its employees, operating sustainably, and strengthening its communities. In fiscal year 2020,
it invested over $2 billion in increased salaries and benefits to enhance its employee well-being.
It also reduced energy consumption by 14% from the year prior and are on track to reduce
company-wide emissions by 40% by 2030.
General Motors
In 2021, General Motors was placed on the Bloomberg General Equality Index for a fourth
consecutive year as well as being placed in Diversity Inc.'s top 50 companies for diversity for
a sixth consecutive year. In addition, it has planned for a $35 billion investment from 2020 to
2025 in electric vehicles and aims for 100% renewable electricity at U.S. sites by 2025.

Why Should a Company Implement CSR Strategies?

Many companies view CSR as an integral part of their brand image, believing that customers
will be more likely to do business with brands that they perceive to be more ethical. In this
sense, CSR activities can be an important component of corporate public relations. At the same
time, some company founders are also motivated to engage in CSR due to their convictions.

Why Is CSR Important?

The movement toward CSR has had an impact in several domains.
For example, many companies have taken steps to improve the environmental sustainability of
their operations, through measures such as installing renewable energy sources or purchasing
carbon offsets. In managing supply chains, efforts have also been taken to eliminate reliance
on unethical labor practices, such as child labor and slavery.

6
Although CSR programs have generally been most common among large corporations, small
businesses also participate in CSR through smaller-scale programs, such as donating to local
charities and sponsoring local events.

What Are the Benefits of CSR?

CRS initiatives strive to have a positive impact on the world through direct benefits to society,
nature and the community in which a business operation. In addition, a company may
experience internal benefits through the initiatives. Knowing their company is promoting good
causes, employee satisfaction may increase and retention of staff may be strengthened. In
addition, members of society may be more likely to choose to transact with companies that are
attempting to make a more conscious positive impact beyond the scope of its business.

What Are the 4 Types of CSR?

CSR initiatives are often broken down into four categories: environmental, philanthropic,
ethical, and economic responsibility. Environmental initiatives focus on preservation of natural
resources, while philanthropic initiatives focus on donating to worthy causes that may not relate
to a business. Ethical responsibility ensures fair and honest business operations, while
economic responsibility promotes the fiscal support of the goals above.

What Companies Have the Best CSR?

There is no single defining rubric for evaluating the CSR of all companies. Various sources
will review and compile rankings differently. Since 1999, Corporate Responsibility Magazine
has ranked the top 100 Best Corporate Citizens each year among the 1,000 largest U.S. public
companies. Rankings are determined based on employee relations, environment impact, human
rights, governance, and financial decisions.
In 2021, the top five ranked companies on the list included Owens Corning, General Motors,
H.P., Cisco, and Intel.

The Bottom Line

Companies striving to measure success beyond bottom line financial results may adopt
corporate social responsibility strategies. These strategies may target environmental, ethical,
philanthropic, and fiscal responsibility that extend beyond the products they sell. CSRs aim to
make the world a better place beyond transacting with customers and may result in company-
specific benefits as well.

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 CHAPTER 2
COMPANY PROFILE

ITC is one of India's foremost private sector companies with a Gross Sales Value of ₹ 90,104
crores and Net Profit of ₹ 15,058 crores (as on 31.03.2022). ITC has a diversified presence in
FMCG, Hotels, Packaging, Paperboards & Specialty Papers and Agri-Business. ITC's
aspiration to be an exemplar in sustainability practices is manifest in its status as the only
company in the world, of its size and diversity, to be carbon, water and solid waste recycling
positive. In addition, ITC's businesses and value chains create sustainable livelihoods for more
than 6 million people, a majority of whom represent the poorest in rural India.

Multiple Drivers of Growth

ITC is the country's leading FMCG marketer, the clear market leader in the Indian Paperboard
and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its
wide-reaching Agri Business, a pre-eminent hotel chain in India that is a trailblazer in
'Responsible Luxury'. ITC's wholly-owned subsidiary, ITC Infotech, is a specialized global
digital solutions provider.

Over the last decade, ITC's new Consumer Goods Businesses have established a vibrant
portfolio of 25 world- class Indian brands that create and retain value in India. ITC's world
class FMCG brands including Ashirwad, SunFest, Yippee!, Bingo!, B Natural, ITC Master
Chef, Fabella, Sunbean, Fame, Engage, Vivel, Savlon, Classmate, Paper kraft, Mangal deep,

8
Aim and others have garnered encouraging consumer franchise within a short span of time.
While several of these brands are market leaders in their segments, others are making
appreciable progress.

Leveraging Institutional Strengths

The competitiveness of ITC's diverse businesses rest on the strong foundations of institutional
strengths derived from its deep consumer insights, cutting-edge Research & Development,
differentiated product development capacity, brand-building capability, world-class
manufacturing infrastructure, extensive rural linkages, efficient trade marketing and
distribution network and dedicated human resources. ITC's ability to leverage internal
synergies residing across its diverse businesses lends a unique source of competitive advantage
to its products and services.

ITC's 'Nation First: Sab Saath Badhein' philosophy underlines its core belief in building a
globally competitive and profitable Indian enterprise that makes an exemplary contribution to
creating larger societal value. As a company deeply rooted in Indian soil, ITC is inspired by
the opportunity to serve larger national priorities. A global exemplar in Sustainability, ITC is
the only enterprise in the world of comparable dimensions to be carbon-positive, water-positive
and solid waste recycling positive for over a decade now. ITC has created over 6 million
sustainable livelihoods. Nearly 42% of the total energy consumed in ITC is from renewable
sources. ITC's premium luxury hotels have the unique distinction of being LEED Platinum
certified.
ITC's Well-being Out of Waste programme (WOW) that comprehensively addresses the
problem of solid waste management, of which plastic waste is a significant component,
provides an end-to-end sustainable and scalable solution that has reached out to over 1.8 crores
citizens in the country.
Together with farmers and local communities, ITC has implemented largescale interventions
in climate-smart and sustainable agriculture that make a meaningful contribution to the Hon'ble
Prime Minister's vision of doubling farmer incomes. Towards this, ITC has launched an
integrated programme titled 'Baareh Mahine Hariyali' (maximising farm utilisation over 12
months of the year) to give a new dimension to the complex task of multiplying farmer
incomes. ITC is collaborating with NITI Aayog to progressively build capacity of 2 million
farmers in 27 Aspirational Districts to help enhance rural incomes.
ITC is investing in India's future by building world-class consumer goods factories and iconic
hospitality assets that will contribute to the country's competitive capacity. These investment
projects underpin the Company's support to the Government's "Make in India" vision.

9
Over the years, ITC has evolved from a single product company to a multi-business
corporation. Its diverse businesses include fast moving consumer goods, hotels, paperboards,
paper & packaging and Agri business.
The Company's investments in its different businesses are structured in the nature of in-house
divisions, subsidiaries, joint ventures, associate companies and trade investments.
The task of governing a corporation of ITC's size and diversity was rendered more complex in
post liberalisation India, which began experiencing the intense impact of globalisation. In order
to address its own unique organisational context and prepare itself for the global Indian market,
ITC, as early as in 1999, fashioned an unique corporate governance model that would enable
it to 'focus' on its multiple businesses, while maximising shareholder value.
This governance policy has not only stood the test of time, but also supported ITC's rapid
growth in the last two decades since its formulation. In the intervening years, ITC has not only
widened its diversity with the launch of several new businesses in its chosen strategic arena,
but has also responded to the growth challenge by creating new internal structures like shared
services and business verticals, designing broad-band roles like Line CMC Members, Chief
Operating Officers of Business / Vertical, and enabling operating decision-making powers at
empowered levels.

Core principles
ITC's Corporate Governance initiative is based on two core principles. These are:
 Management must have the executive freedom to drive the enterprise forward without
undue restraints; and
 This freedom of management should be exercised within a framework of effective
accountability.
ITC believes that any meaningful policy on Corporate Governance must provide empowerment
to the executive management of the Company, and simultaneously create a mechanism of
checks and balances which ensures that the decision-making powers vested in the executive
management is not only not misused, but is used with care and responsibility to meet
stakeholder aspirations and societal expectations.

10
 CHAPTER 3
CSR ACTIVITIES

As part of TalkCSR series doing a deep dive into social initiatives by top corporates, let’s
explore the CSR of ITC. The Group headquartered in Kolkata sits proudly on our list of top
companies for CSR in 2020. Another report by Goodera ranked ITC Limited as the 7th largest
spender on Corporate Social Responsibility in India for 2019.
While the company’s CSR spend was a steep Rs. 307 crores that year, in 2020 it rose to Rs.
326 crores. CSR of ITC Group has long-running, multi-year projects in six of the 11 activities
of Schedule VII, including the often-neglected culture and national heritage.

Ashesh Ambasta, executive vice-president and head (social investments) said in an interview,
“The CSR activities of ITC are focused on two stakeholder communities: rural communities
with whom ITC’s agri-businesses have forged enduring partnerships, and with communities
residing in close proximity to our production units.” Indian Tobacco Company (formerly
Imperial Tobacco Company of India Ltd.) is one of India’s foremost private sector companies
and a diversified conglomerate with businesses spanning FMCG, tobacco, hotels, packaging,
Agri businesses and IT.

ITC is acknowledged as one of India’s most valuable business corporations with a market
capitalisation of nearly US$ 50 billion. It was ranked India’s most admired company, in a
Fortune India survey.

11
SUSTAINABILITY AND CSR OF ITC

ITC’s journey in sustainability is inspired by its large vision to put the ‘Nation First’. Towards
this end, it has adopted a comprehensive CSR policy outlining measures to undertake projects
and activities for making a significant impact on the marginalised.

The footprint of the Company’s Social Investments Programme (SIP) projects covers vast
ground - over 27 States / Union Territories covering 235 districts (some, under the
government’s high priority Aspirational District Programme). ITC Group’s CSR expenditure
incurred under Section 135 of the Companies Act, 2013 amounted to INR 307 crores in 2019
(it was INR 291 crores in 2018).

KEY GOALS ALIGNING WITH SDGS

Due to the Triple Bottom Line approach that ITC Limited follows and its commitment to

‘Nation First’, the enterprise contributes to India’s targets towards the Sustainable

Development Goals (SDGs) set by the United Nations:

 Creating sustainable livelihoods for 10 million Indians by 2030.

 Expand social investment programmes to empower rural communities.

 Sustain and strengthen the human capital capability to achieve business goals and

enhance ITC’s standing as a top employer through purpose-driven investments in

people development and talent management practices.

 50% of total energy would come from renewable sources.

 Make ITC a carbon, water and solid waste recycling positive organisation.

 Target of 50% reduction in Specific Emissions and 35% reduction in Specific Energy

Consumption by the year 2030

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 Benchmark operations for Specific Water Consumption to Global Standards.

 Rainwater harvesting equivalent to over 3 times the net water consumption from
operations by 2030.

 Target making 100% of packaging reusable, recyclable / compostable.

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CSR Policy

Recognising that business enterprises are economic organs of society and draw on societal
resources, it is the Group’s belief that a firm’s performance must be measured by its Triple
Bottom Line contribution. ITC believes that the private sector possesses―beyond mere
financial resources the transformational capacity to create game-changing development
models.
In line with this belief, it has been crafting unique models to generate livelihoods and
environmental capital. Such CSR projects are much more replicable, scalable and sustainable,
with a significant multiplier impact on livelihood creation and environmental restoration.

It is ITC’s policy:
 To formulate CSR Programmes towards achieving one or more of the following: ‒
 enhancement of environmental and natural capital; rural development support;
promotion of education; preventive healthcare, sanitation and drinking water; creating
livelihoods, especially for those from disadvantaged sections of society; sports
promotion;
 To develop self-reliance among people at the grassroots, especially women, since these
are prerequisites for social and economic development;
 To pursue affirmative action interventions like skill building and vocational training,
thus enhancing employability and generating livelihoods the disadvantaged;
 To carry out CSR Programmes primarily in areas that fall within the economic vicinity
of the Company’s operations so as to supervise them closely and ensure maximum
impact;

 To promote sustainability in partnership (SDG 17) with industry associations, like the
Confederation of Indian Industry (CII) through the CII-ITC Centre of Excellence for
Sustainable Development, the goal being a multiplier impact.

GOVERNANCE

 Every year, the CSR and Sustainability Committee will present a strategic CSR Plan
delineating the projects to be taken up during the year and the specified budgets
thereof, for the Board’s approval. The Board will mull over and then approve the
CSR Plan with the necessary modifications.

 The Corporate Management Committee (CMC) will assign certain persons/ bodies
with the task of implementation of the CSR Plan, within specified budgets and
deadlines.

 The implementation persons/bodies will carry out the CSR Programmes as directed
by the CMC and frequently report back on the progress.

 The CMC shall review the implementation of the CSR Programmes once every three
months and issue necessary directions from time-to-time to make sure things are in
accordance with the CSR Policy.

14
  Every six months, the CMC will give a detailed status update to the CSR and
Sustainability Committee on the progress of approved ITC CSR projects. The CSR
Committee of ITC will keep the Board apprised of the same.

 The CSR and Sustainability Committee will submit its report to the Board at the end
of every financial year.

CSR EXPENDITURE

CSR expenditure includes all direct and indirect expenses incurred towards ITC corporate
social responsibility programmes. Moreover, any surplus arising from any CSR programme
shall again be redirected towards CSR. Accordingly, any income from ITC CSR projects will
be netted off from the CSR expenditure and that amount will be reported as corporate social
responsibility expenditure.

15
 CHAPTER 4

STRATEGIC CSR

STRATEGIC CSR OF ITC

Social investment is as crucial for this company as its growth investments, hence its large-
scale Social Investments Programmes (SIPs in short). SIPs are the backbone of MSK
(Mission Sunehra Kal). MSK aims at building rural capacity in partnership with local
communities to develop water and forest resources, open up new non-farm livelihoods,
empower women, expand primary education, and drive future skilling in India.

Key elements of ITC CSR initiatives

 Strengthen capabilities of non-profits, NGOs, CBOs (Community Based

Organisations) for planning, ownership and sustainability of interventions in all the
project catchments.

 Drive India’s development agenda in a way that benefits the poor and marginalised
communities in ITC Group’s factory and Agri-catchment areas, in ways that
improve HDI (Human Development Indices).

 Enabling participation, contribution and asset creation for the whole community
where the project is being implemented.

 Striving for scale by leveraging government partnerships and accessing up-to-date

knowledge and technical information.

16
 1. SOCIAL FORESTRY

This ITC CSR programme focuses on creating commercially viable land-use options for
smallholder farmers through tree-based farming. In addition, it contributes towards 3F security,
such as food, fodder and fuelwood.

The conglomerate’s pioneering afforestation initiative through the Social Forestry programme
is spread across 16 districts in six States covering 3.29 lakh acres in 5,087 villages, impacting
over 1,21,557 poor households.

Together with the Farm Forestry programme, this CSR initiative by ITC has greened nearly
7.33 lakh acres till date, and generated about 135-million-person days of employment for rural
households. The Argo-Forestry initiative is integral to the Social Forestry programme. It
extends to over 1.12 lakh acres and ensures food, fodder and wood security.

Besides enhancing farm level employment and increasing green cover, this large-scale CSR
project of ITC Group also contributes meaningfully to the Indian government’s endeavour to
make additional carbon sinks. Through a multiplier effect, the Social and Farm Forestry
initiative has led to improvement in pulpwood and fuelwood availability in the states of
Andhra Pradesh, Telangana, Karnataka, Chhattisgarh and Odisha. In Tripura state, this
initiative is also creating bamboo wood source, which is most suitable for making incense
sticks.

17
 2. SOIL AND MOISTURE CONSERVATION

The Soil and Moisture Conservation initiative strives for water security for all the stakeholders
inside the factory catchments. Another goal is to drought-proof the Agri-catchments. The
initiative develops and manages local water resources in moisture-stressed areas by facilitating
community participation for measures like building, reviving and maintaining water-harvesting
structures. The coverage of this programme currently extends to 43 districts of 15 States.

3. BIODIVERSITY

Nature provides agriculture with ecosystem services such as natural regulation of pests,
pollination, nutrient cycling, soil health retention and genetic diversity. However, they’ve
been considerably eroded over the past few decades. ITC’s biodiversity initiative aims to
revive them.

This CSR intervention significantly upgrades agricultural activity near village plots through
soil moisture retention, carbon sequestration and by playing host to insects and birds.

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 4. REVIVAL OF ECOSYSTEMS

ITC has collaborated with the IUCN (International Union for Conservation of Nature) in
Bihar’s Munger region to develop ‘Sustainable Agriscape for Future.’ IUCN carried out a
number of studies and surveys to identify key issues.

Pressures on the forest for fodder and wood for fuel from villagers had led to top soil erosion,
invasion of exotic species in community water bodies, excess usage of external input in farms
along the Ganga River, fewer native trees and shrubs that sustain birds and insects. These were
critical factors that would impact the agriscape ecosystem service potential. Based on these
findings, IUCN has suggested three landscape profiles: forest and lakes, lacustrine, and riverine
(Ganga riverbed) landscapes.

Team CSR of ITC Ltd. developed plans for all three types of landscapes, based on the
recommendations by IUCN. Work is in progress on a pilot scale. Actions include creating a
source for fuelwood and fodder within the villages by planting suitable native tree species,
hyacinth-based composting to reduce its growth in lakes, planting native trees along the Ahar
and Pyne banks, and planting multi-tiered native trees on fields near the Ganga to minimise
damage by floods.

19
 5. SUSTAINABLE AGRICULTURE

The programme focuses on strengthening resilience of small and marginal farmers to climate
risks by reducing cost of cultivation, improving productivity, and restoration and replenishment
of depleted natural resources. The Sustainable Agriculture initiative makes farmers climate-
smart.

The group’s Agri Business has pioneered the ‘Village Adoption Programme’. It covers 250
model villages in Andhra Pradesh, Karnataka, Telangana and Rajasthan. This initiative is
aligned with Prime Minister Narendra Modi’s SAGY (Sansad Adarsh Gram Yojana) for holistic
rural development. The Company extensively trained 402 block level Agri-officers who
became Master Trainers, and in turn trained 2,259 village level personnel to become Village
Resource Persons (VRPs), who go on to teach farmers. VRPs have trained 2.05 lakh farmers
in sustainable practices for their region.

PARTNERSHIP WITH NITI AAYOG FOR ASPIRATIONAL DISTRICTS

The Indian government’s Aspirational District Programme (ADP) seeks to transform the
most backward districts in the country. ITC has a partnership with NITI Aayog to enhance the
agriculture and allied sector in 27 Aspirational Districts of 8 states. The modus operandi is
capacity-building of officers of the Department of Agriculture, which will trickle down to the
farmers. Scientists from agriculture universities and Krishi Vigyan Kendra’s (KVKs)
developed the training kits. They’ve been localised into Hindi, Marathi, Assamese and Odia.

Since the project’s launch in September 2018, there is remarkable progress:

– NGO partner VIKSAT trained 402 block level Agri-officers as Master Trainers;

– They coached 2,259 village level staff as VRPs to train farmers.

– The VRPs have worked with 2.05 lakh farmers.

– 675 Farmer Field Schools were promoted, creating a pool of 16,900 “champion farmers”.

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What is ITC e-Choupal?

ITC e-Choupals leverage the power of Information Technology. Internet-kiosks called

“sanchalaks” in the village are managed by appointed farmers. These sanchalaks provide
information to other farmers in their native tongue on weather forecasts, market prices,
scientific farm practices and risk management. As a result, farmers can make informed
decisions, and experience higher productivity. They get inputs from established manufacturers
at fair prices.

Since its launch in the year 2000, e-Choupal by ITC has gone on to become the largest
internet-based intervention in rural India. With 6,100 kiosks spread across 12 states, it reaches
out to 4 million farmers pan-India.
Higher price transparency and lower handling and commission fees increase the farmers’
margins by over 25% on average and, in the 15 years since its implementation, CSR of ITC
has directly reached 4 million farmers across 40,000 villages and has grown its export sales
by more than 600% to $600 million annually.
In 2002, the company launched its packaged foods business, which grew to $1 billion in
revenues by 2015. Despite being a late entrant in the market, its flagship brand of wheat flour,
Ashirwad, became a market leader within 18 months of its launch. e-Choupal was
instrumental in this regard because it allows the company to aggregate produce by crop
variety and quality to create customised flour mixtures. Farmer incomes increased
significantly as a result – both because those who grew superior-quality wheat for the first
time were receiving a price premium, and because ITC e-Choupal communicated to farmers

21
about the varieties that would yield a better harvest price. The e-Choupal ecosystem installed
large watershed projects, hence raising farmer incomes.

ITC also viewed the business opportunities that emerged out of these initial efforts to re-
engineer its value chain as “e-Choupal Version 1.0”. Subsequently, the company launched
versions 2.0 and 3.0, each time adding new revenue streams. Version 2.0 reconceptualised e-
Choupal as a platform that channels sales of agricultural inputs and other services to farmers,
while Version 3.0 offers the e-Choupal platform to external partners for a fee.

The continuous evolution of the e-Choupal platform is supported by a project management

methodology internally branded as “Roll Out, Fix It, Scale Up”. Once the company has 60-
70% clarity on a new business model, it is rolled out live, refined with input from multiple
stakeholders and scaled up.

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 6. WOMEN’S ECONOMIC EMPOWERMENT

This CSR initiative of ITC provides women with financial assistance via loans and grants. It is
closely aligned to the government’s STEP (Support to Training and Employment Programme).
Initiated in 2014, this holistic intervention currently supports 8,900 ultra-poor women to
promote their socioeconomic mainstreaming. The Programme is operational in 8 districts of
Bihar, West Bengal, Madhya Pradesh, Telangana, Rajasthan, and Assam and has cumulatively
impacted 22,700 women. 13,795 graduated women have shown significant progress on
outcome indicators such as financial inclusion, literacy, health, water, sanitation, and nutrition,
besides income.

Out of a total of 3,586 operational SHGs, 400 SHGs were newly formed in 2018-19. The
SHGs together leveraged INR 218 lakh from banks and other formal financial sources. Post
the signing of the MoU with Madhya Pradesh State Rural Livelihood Mission (MPSRLM)
for financial literacy and inclusion of SHG women members, the programme was rolled-out
to 11 districts.

The “Ab Samjhauta Nahin”, Know Your Rights initiative created awareness on legal rights
that safeguard and protect women in 115 colleges in Delhi and Gujarat, directly reaching out
to over 14,000 students via interactive workshops. The financial literacy and inclusion
project, in partnership with Madhya Pradesh State Rural Livelihood Mission (MPSRLM) and
CRISIL Foundation, was rolled out in 765 villages across 11 districts.

23
 7. WOMEN AGRI-ENTREPRENEURS

As in other parts of India, it was observed that while women play a critical role in the
agricultural sector, they are not recognised as farmers and do not count as decision makers in
Munger district of Bihar also. Therefore, ITC’s Mission Sunehra Kal designs and implements
a special intervention to empower rural women through knowledge and technology: women-
run Agri-Business Centres (ABCs) were established to promote sustainable agriculture
practices. In Munger, the ABC engages in a variety of activities like

– hiring out of Agri equipment

– nursery raising

– seed production

– capacity building of other farmers and

– linkages to government schemes collectively.

Initially, the women faced hurdles like family restriction, lack of acceptance by other farmers,
and difficulty in operating the Agri equipment and finances. However, regular and continuous
training equipped the women with adequate technical and financial knowledge to operate and
manage the ABC independently.

Previously women were recognised as mere helpers in field operations. Post the intervention,
however, they were recognised as ‘farmers’ and their collective bargaining power increased
as they were given high regard as a group undertaking practices to improve agricultural
productivity, whilst reducing cost of cultivation. Due to the success of the intervention,
government officials offer the women ABCs the first right to draw the benefit of government
schemes and agricultural inputs at subsidised rates.

Economic prosperity of the group and individual women was observed, which triggered
improvement in their Human Development Indices (HDI) like access to quality healthcare,
children education, nutritious meals, savings account and linkage to social security schemes.

Sunita, one of the hundreds of such beneficiaries summarises: “These days, women have
more money in their accounts than the husbands. Whatever they grow and sell, they save it to
secure the education of their children, healthcare, housing and dreams.”

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 8. EDUCATION

The Primary Education Programme is directed at kids from weaker sections of society in ITC
Group’s factory catchments. The programme covered 1.15 lakh children in 24 districts of 14
states last year. In all, around 6.91 lakh children have been impacted.

The education programme improved the infrastructure in 199 government primary schools.
Boundary walls, additional classrooms, toilets and furniture were installed.

9. SKILLING & VOCATIONAL TRAINING

The Skilling & Vocational Training initiative makes youth job-ready. It operates in 32 districts
of 17 states. The most sought-after skills where the initiative runs courses are hospitality,
electrical, computer skills and bedside assistance.

ITC Group CSR works with the Welcomgroup Graduate School of Hotel Administration
(WGSHA) together with Dr TMA Pai Foundation for skill training. The ITC Culinary Skills
Training Centre was launched in Chhindwara in 2014. It trains economically backward youth
in becoming chefs; 103 trainee chefs have completed the comprehensive programme.

10. HEALTH & SANITATION

One of the objectives of ITC’s public health and sanitation initiative is prevention of ODC
(open defecation). The group constructed 4,443 Individual Household Toilets (IHHT) in 26
districts last year. Till date, a total of 35,916 such toilets have been constructed.

CSR of ITC set up RO (Reverse Osmosis) plants in villages with poor quality water, in three
districts of Andhra Pradesh. To provide safe drinking water, 26 new RO plants were installed
last year, taking the total up to 127. Over 150,000 rural people have access to potable drinking
water through this health and sanitation initiative.

Corporate social responsibility of ITC raised awareness on various health-related issues

through a network of 415 women Village Health Champions (VHCs) last year. They reached
out to nearly 3.22 lakh women, adolescent girls and school kids. The programme is operational
in seven districts of UP and 4 districts of MP. The VHCs hold village meetings, group events
and go door-to-door to talk about sanitation, menstrual hygiene, family planning and how to
prevent diarrhoea.

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Audio-visual aids, games and practical training were leveraged to encourage healthy hygiene
habits as part of ITC Group’s ‘Swasth India Mission’. Nearly 19.2 lakh children from 5,247
schools in 12 states were covered in 2019. Additionally, access to handwashing was enabled
through the unique ‘ID Guard’ initiative to all the students covered in these 5,247 schools.

Over 77,000 beneficiaries were covered under the Mother and Child Health initiative aimed at
improving the health-nutrition status of women, adolescents and children in the catchments of
a few of the Company’s factories with high maternal and infant mortality indices. This was
achieved by strengthening institutional capacity, promoting greater convergence with existing
government schemes and increasing access to basic services on maternal, child, and adolescent
health, nutrition and child protection.

11. SOLID WASTE MANAGEMENT

ITC’s Solid Waste Management Programmes in Saharanpur and Munger focus on

“Decentralised Solid Waste Management” i.e., waste management close to the generator
through source segregation, and community and home composting to achieve the end objective
of “minimal waste to landfill” with community ownership.

The Company’s waste recycling programme, ‘WOW – Well-Being Out of Waste’, enables the
creation of a clean and green environment and promotes sustainable livelihoods for waste
collectors. The programme continued to be executed in Coimbatore, Chennai, Bengaluru,
Delhi, Muzaffarpur (Bihar), several districts of Telangana and Andhra Pradesh and now
expanded to Mysuru and Chikmagalur districts during the year. The recycling programme has
reached out to 89 lakh Indians, 48 lakh school kids and 2,000 corporates since its inception.

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 CHAPTER 5

CONCLUSION

The best framework for CSR reporting depends on the target audience, value and purpose of
the report. For example, investors looking to determine the carbon emissions or climate change
mitigation of an organization might select the CDP or DJSI framework as the best choice.
These public frameworks will also be ideal if your goal is to compare your data to your peers.

However, if the CSR report is aimed at stakeholders such as NGOs, suppliers, employees or
customers, and it seeks to determine the social, economic or environmental impact of an
organization on these stakeholders, the GRI framework might be more appropriate.

CSR reporting is largely voluntary, however, some jurisdictions such as Australia, Canada and
the UK require large organizations and others operating within specific industries to report on
their social and environmental performance. It is not currently mandatory in the US, although
this may soon change. Even in countries where sustainability reporting is not mandatory, many
organizations undertake voluntary CSR reporting. This can assist them with stakeholder
engagement, bolster their reputation with investors and customers, and help them meet their
disclosure targets.

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 CHAPTER 6

REFERENCE

https://thecsrjournal.in/itc-csr-report-india/

http://www.google.com

https://www.academia.edu

https://in.yougov.com

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