Titan: Audited financial results for the Year ended 31 March 2003

Audited financial results for the year ended 31stMarch, 2003

(Rs. in crore)
Particulars	Nine months ended 31-12-2002	Quarter ended 31-3-2003	Quarter ended 31-3-2002	Year ended 31-3-2003	Year ended 31-3-2002	Consolidated Year ended 31-3-2003	Consolidated Year ended 31-3-2002
	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)	(Audited)	(Audited)	(Audited)
Net sales / Income from operations	539.16	258.74	276.76	797.90	724.78	807.50	730.38

Other income	1.34	9.06	0.55	10.40	2.24	15.00	6.54
Total income	540.50	267.80	277.31	808.30	727.02	822.50	736.92
Expenditure
Decrease / (increase) in stock in trade	(41.89)	36.85	40.55	(5.04)	18.84	(2.76)	18.64
Consumption of raw materials	340.64	132.59	122.96	473.23	379.23	475.07	381.04
Excise duty	45.86	14.67	18.60	60.53	58.84	60.53	58.84
Staff cost	58.25	13.32	22.84	71.57	76.32	72.24	76.97
Advertising	34.82	12.62	9.61	47.44	36.55	48.80	37.59
Other expenditure	47.83	17.29	22.46	65.12	64.03	54.60	64.61

Total expenditure	485.51	227.34	237.02	712.85	633.81	708.48	637.69
Interest	32.76	8.59	10.12	41.35	46.26	46.43	49.78
Depreciation	16.82	4.32	6.88	21.14	23.28	21.27	23.43
Amortisation	7.83	0.17	4.84	8.00	5.11	10.50	7.65
Profit / (Loss) before exceptional items	(2.42)	27.38	18.45	24.96	18.56	35.82	18.37
Exceptional items
VRS cost	3.44	1.74	-	5.18	-	5.18	-
Provision for diminution in value of investments	-	10.00	0.40	10.00	0.40	10.00	0.40

Profit / (Loss) before taxes	(5.86)	15.64	18.05	9.78	18.16	20.64	17.97
Income taxes - Current tax	0.64	4.23	6.08	4.87	6.12	5.35	6.31
- Deferred tax	(2.90)	(0.09)	(0.60)	(2.99)	(1.05)	(3.00)	(1.06)
Profit / (Loss) after taxes for the year	(3.60)	11.50	12.57	7.90	13.09	18.29	12.72
Less: Income tax of earlier years	-	1.69	-	1.69	-	1.69	-
Less: Share of profits less losses of associates	-	-	-	-	-	5.14	(0.39)
Net Profit	(3.60)	9.81	12.57	6.21	13.09	11.46	13.11

Paid-up equity share capital (face value: Rs.10 per share)	42.28	42.28	42.28	42.28	42.28	42.28	42.28
Paid-up preference share capital	40.00	40.00	40.00	40.00	40.00	40.00	40.00
Reserves excluding revaluation reserves	-	-	-	80.19	82.42	37.78	36.24
Basic and diluted earnings per equity share (Rupees)	(1.49)	2.09	2.97	0.60	2.20	1.84	2.20
Aggregate of Non-Promoter shareholding
- Number of shares	19,078,141	19,078,141	19,078,141	19,078,141	19,078,141	19,078,141	19,078,141
- Percentage of shareholding	45.1%	45.1%	45.1%	45.1%	45.1%	45.1%	45.1%
Segment Results
Net sales / Income from segments
Watches & Clocks	307.16	146.73	181.56	453.89	458.74	466.81	469.85
Jewellery	232.75	112.38	95.52	345.13	267.72	346.42	266.55

Total	539.91	259.11	277.08	799.02	726.46	813.23	736.40
Profit / (Loss) from segments before interest and taxes
and after share of profits less losses of associates
Watches & Clocks	23.09	19.29	23.89	42.38	51.88	53.39	57.78
Jewellery	6.72	7.68	4.48	14.40	12.84	14.29	12.97

Total	29.81	26.97	28.37	56.78	64.72	67.68	70.75
Less : Interest attributable to segments	31.87	8.26	9.80	40.13	43.64	45.20	47.16

Operating profit / (loss) from segments	(2.06)	18.71	18.57	16.65	21.08	22.48	23.59
Less : Exceptional items
VRS cost	3.43	1.75	-	5.18	-	5.18	-
Provision for diminution in value of investments	-	10.00	0.40	10.00	0.40	10.00	0.40

Profit / (loss) from segments before taxes	(5.49)	6.96	18.17	1.47	20.68	7.30	23.19
Unallocable income net of unallocable expenditure	(0.37)	8.68	(0.12)	8.31	(2.52)	8.20	(4.83)

Profit / (loss) before taxes	(5.86)	15.64	18.05	9.78	18.16	15.50	18.36

Capital Employed in segments
Watches & Clocks	510.41	491.74	470.81	491.74	470.81	447.29	437.30
Jewellery	86.70	124.33	135.87	124.33	135.87	124.87	133.42
Others (Corporate)	46.79	55.04	45.88	55.04	45.88	57.07	43.29

Total	643.90	671.11	652.56	671.11	652.56	629.23	614.01

Notes:

Consequent to a dispute over the three year wage settlement, the Company was constrained to declare a lock-out in the last quarter.Historically, the last quarter has always been the quarter of maximum sales and hence the most profitable for the Company. The lock-out at this crucial stage had a significant impact on the results of the company.

Other income includes Rs. 7.71 crores of equity dividend received during the year from RDI Print & Publishing Ltd.

The Company has made a provision of Rs.10 crores towards diminution in the value of its investment in the European subsidiary.

The Company introduced a voluntary retirement scheme (VRS) for its employees, the cost of which is being amortised over a period of five years.

Amortisation costs include additional outgoings on brand building and related outlays for the European operations, and one-time consultancy charges for long-term operating and strategic initiatives.

The Directors have recommended a dividend of Rs.1.00 per share (10%).

The figures of earlier periods have been regrouped/recast, where necessary.

The above statement of Financial results for the year ended 31 March 2003 of the Company, and the Consolidated Financial results of the Company prepared as per 'the Accounting Standards AS-21, AS-23 & AS-27 with its subsidiaries / associates / joint venture were approved by the Board of Directors at their meeting held on 28 June 2003.

Bangalore
Dated: June 28, 2003

For and on behalf of the Board of Directors
Bhaskar Bhat
Managing Director

Titan Industries Limited