Titan Company Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. The unaudited financial results of Titan Company Limited ('the Company") have been prepared In accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended.
2. As at 31 December 2018, the Company had, as part of its Treasury operations, Invested In inter corporate deposit amounting to INR 14,500 lakhs with Infrastructure Leasing & Financial Service Limited and its subsidiary (IL&FS Group) which were due for maturity in November 2018 and December 2018. The aforesaid amounts and the interest have however not been received as on date. As a result of increased credit risk in relation to outstanding balance from IL&FS group and the uncertainty prevailing on IL&FS Group due to the proceeding pending with the NCLT Management has provided for an amount of Rs 7000 lakhs for impairment in value of deposite for the quarter ended December 31, 2018 in addition to Rs 2900 lakhs provided for in the quarter ended September 30, 2018 taking the total provision for the aforesaid inter corporate deposite to Rs 9900 lakhs as at December 31, 2018. The provision currently reflects the exposure that may arise fiven the uncertainty. The Company however continues to monitor developments in this matter and is committed to take steps including legal actions that may be necessary to ensure full recoverability .
3. Exceptional items includes:
(a) The Company had announced Early Retirement Schemes to its employees during the year ended 31 March 2018. The expenses incurred for the quarter and nine months 31 December 2017 is Rs. 1095 lakhs and for the year ended 31 March 2018 is Rs. 1665 lakhs.
b. Provision for impairment of investment in a subsidiary (Favre Leuba AG, Switzerland) made for the year ended 31 March 2018 amounting to Rs. 7,500 lakhs.
Profit / (Loss) from segments before exceptional items, finance costs and taxes are as below for the quarter and nine months ended December 31, 2017 and year ended March 31, 2018; For Table, kindly refer Corporate Announcements on www.bseindia.com.)
4. Revenue from operations for the period up to 30 June 2017 includes excise duty on goods sold. With the implementation of Goods and Service Tax (GST) in India w.e.f. 1 July 2017, excise duty has subsumed into GST and hence, revenue from operations for the period from 1 July 2017 does not include excise duty.
5. Other operating revenue includes a) Sale of precious / semi-precious stones, b) Sale of gold / platinum, c) Government grant and d) Scrap sales. Government grant pertains to the budgetary support under Goods and Service Tax (GST refund) for the existing eligible units under the different industrial promotion schemes.
6. The Company has disposed of its entire shareholding in Titan Time Products Limited to Danlaw Technologies India Limited on 18 June 2018 at a consideration of Rs. 1850 lakhs. Consequently, the Company has recognised profit on sale of investment amounting to Rs. 487 lakhs under the head ’Other income' during the nine months ended 31 December 2018.
7. The Company is structured into four verticals namely Watches, Jewellery, Eyewear and Others where "Others'' include Accessories, Fragrances and Sarees. Accordingly, the Company has presented its segment results under these business segments.
8. The statutory auditors have carried out limited review of the unaudited financial results for the quarter and nine months ended 31 December 2018 and have issued an unmodified review report.
9. Effective 1 April 2018, the Company has adopted Ind AS 115, Revenue from Contracts with Customers using the cumulative effect (without practical expedients). There are no material impacts of transition to Ind AS 115 on retained earnings as on 1 April 2018 and the unaudited financial results for the quarter and nine months ended 31 December 2018.
10. The unaudited financial results of the Company for the quarter and nine months ended 31 December 2018 have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at their meeting on 01 February 2019.
11. The comparative figures have been regrouped/reclassified, where necessary to conform to the current period's presentation.
