promotion meaning promotion and upgradation rational of promotion merit of promotion demerits of promotion

**Promotion Meaning:**

- **Definition:** Promotion refers to the advancement of an employee to a higher position or rank within an organization due to factors such as performance, experience, or qualifications.

**Promotion and Upgradation:**

- **Promotion:** Involves moving to a higher-level position with increased responsibilities, authority, and often, higher pay.

- **Upgradation:** Refers to upgrading an employee's current position by enhancing their role, responsibilities, and sometimes, compensation, without necessarily changing their job title or rank.

**Rationale of Promotion:**

- **Recognition of Performance:** Promotion rewards employees for their hard work, dedication, and exceptional performance, motivating them to continue contributing positively to the organization.

- **Career Growth:** It provides employees with opportunities for career advancement, skill development, and personal growth, leading to job satisfaction and higher retention rates.

- **Succession Planning:** Promotions help in identifying and grooming talented individuals for leadership roles, ensuring a pipeline of capable leaders within the organization.

**Merits of Promotion:**

- **Motivation:** Promotions act as incentives, motivating employees to strive for excellence and contribute effectively to the organization's goals.

- **Skill Enhancement:** Employees often acquire new skills and experiences in higher-level roles, enhancing their overall capabilities and value to the organization.

- **Employee Loyalty:** Recognizing and rewarding employees through promotions fosters loyalty, commitment, and a positive organizational culture.

**Demerits of Promotion:**

- **Unfairness:** If promotions are not based on merit but rather favoritism or bias, it can lead to resentment, demotivation, and decreased morale among employees.

- **Lack of Preparation:** Promoting employees without adequate training or preparation for their new roles can result in performance issues, inefficiencies, and potential setbacks for the organization.

- **Retention Challenges:** In cases where promotions are limited or competitive, employees who are not promoted may feel underval

1. CORPORATE ACCOUNTING






Yashmine Praveen
23504111






PRESENTATION ON





Anshika Sirohi
23504109






Kumari Aastha Bisht
23504110






Komal Kumari
23504113






Dipika Ruwali
23504114

2. FOUNDER
—----------------
Xerxes Desai









Titan, country's leading watch brand from the
Titan Industries Limited, a joint venture
between the Tata Group and the Tamil Nadu
Industrial Development Corporation (TIDCO)...

• Titan was set up in July 1984 by Xerxes Desai.
• CEO of titan is BHASKAR BHATT.
• In 1995, the company diversified into
jewellery.
• In 2005, the company has diversified into
fashion Eyewear.
• Titan Watches is India's largest watch &
jewellery manufacturer.
• Titan is the world's 6th largest, integrated
manufacturer-brand for watches.
• Watch assembly plants at Dehradun, Baddi,
and Roorkee; ECB (Electronic Circuit Boards)
plant in Goa; Jewellery Plant at Dehradun.
TITAN

3. HISTORY
The Company was Incorporated on 26th July, at Chennai. The
Manufacture analog electronic watches with a choice of over 150
designs. The company was promoted jointly by Questar
Investments, Ltd., a Tata Company with its associates Tata Sons,
Ltd., and Tata Press, Ltd., and Tamil Nadu Industrial
Development Corporation, Ltd. (TIDCO). The main objective of
the company is to manufacture analog electronic watches with a
choice of over 150 designs.
- The Company undertook to set up a plant for the manufacture
of quartz analog electronic watches in the State Industries
Promotion Corporation of Tamil Nadu, Ltd. Industrial area at
Hosur.
- The Company entered into a collaboration agreement with
France Ebauches (FE) of France, manufacturers of watch
movements and components, for technical documentation,
assistance in procurement of manufacturing equipments, raw
materials, etc.
- The Company proposed to manufacture 2 million digital and
ana-digi watches in collaboration with Casio Computer
Company of Japan. A MOU was signed between the Company and
Casio in November, 1986.
- The Company established a manufacturing facility at Hosur
for the manufacture of components for watches.
-Titan Industries Ltd. shall be changed to Titan Company Ltd.
-Titan Company Limited has been featured in Bangalore s top
10 Innovative Company brands by Paul Writer, one of country s
biggest community of marketeers.
“Be More”

4. Liquidity ratio
show the ability of
the enterprise to
meet its
short-term
financial
obligation…….
Current assets
--------------------------
Current liabilities
Quick assets
-------------------------
Current liabilities

Quick assets= current
assets - inventory
Current
ratio
Quick ratio
Liquidity
ratio

5. The current ratio has increased from 1.6603 in 2022 to 1.6893 in 2023, indicating an improvement in the
company's ability to pay its short-term debts.
Quick assets
= --------------------
Current liabilities
QA=CA-Inventory
= 17,454 - 13,609
=3, 845

3,845
2022 = --------------
10,512
= 0.365
Current ratio
Current assets
= -----------------------
Current liabilities

22,407
2023 = ------------
13,264

= 1.6893
Current ratio

6. The quick ratio has increased from 0.365 in 2022 to 0.439 in 2023, indicating an improvement in the
company's ability to meet its short-term obligations with its liquid assets.
Quick assets
= --------------------
Current liabilities
QA=CA-Inventory
= 22,407 - 16,584
=5, 823

5,823
2023 = ------------------
13,264
= 0.439
Quick ratio
Quick assets
= --------------------
Current liabilities
QA=CA-Inventory
= 17,454 - 13,609
=3, 845

3,845
2022 = --------------
10,512
= 0.365
Quick ratio

7. It is financial indicator that shows how effectively a company is generating revenue and cash by using its
asset on its balance sheet Activity ratio also termed as performance and turnover ratio…


Activity

8. CLASSIFICATION
.ACTIVITY RATIO
1)INVENTORY TURNOVER RATIO
2)ACCOUNTS RECEIVABLE RATIO
3)FIXED ASSET TURNOVER RATIO
4) TOTAL ASSET TURNOVER RATIO

9. INVENTORY TURNOVER RATIO
Inventory turnover ratio is a financial metric used to measure how many times a
company's inventory is sold and replaced over a certain period, usually a year…


Inventory turnover formula–

10. INVENTORY TURNOVER RATIO

Year ended march 2022–2.09
Year ended march 2023–2.01

INVENTORY TURNOVER RATIO OF TITAN HAS FALLEN BY -3.72% COMPARED
TO PREVIOUS FINANCIAL YEAR...

INVENTORY TURNOVER RATIO WITH VALUE OF 2.38 WAS HIGHEST IN YEAR
MARCH 2019 IN LAST FIVE YEAR…

INVENTORY TURNOVER RATIO OF TITAN TRENDING DOWN FOR AT LEAST
THREE YEARS…

LATEST INVENTORY TURNOVER RATIO WITH VALUE OF 2.O1 IS LOWER THAN
AVERAGE INVENTORY TURNOVER RATIO OF 2.15 IN LAST FIVE YEAR…

11. Accounts receivable turnover ratio
The accounts receivable turnover ratio is a simple
metric that is used to measure how effective a
business is at collecting debt and extending credit.
It is calculated by dividing net credit sales by
average accounts receivable. The higher the ratio,
the better the business is at managing customer
credit.

12. ACCOUNTS RECEIVABLE RATIO
The accounts receivable turnover ratio is a simple metric that is used
March 2022- 65.50
March 2023-46.50

A decrease in the accounts receivable from 2022 to
2023 suggests that titan company took longer , on
average, to collect payment to its customers in
2023 compared 2022. This could be due to
various factors such as changes in credit
policies, customer payment behaviour ,or
changes in sales volume . A declining ratio
may indicate potential issues its liquidity or
collection efficiently , which could warrant
further investigation into the company
receivable management practices

13. Fixed asset turnover ratio
The fixed asset turnover ratio reveals how efficient a
company is at generating sales from its existing fixed assets.
The fixed asset turnover ratio is calculated by dividing net
sales by the average balance in fixed assets.
A higher ratio implies that management is using its fixed
assets more effectively.

14. Fixed asset turnover ratio analysis
2022-2.56
2024-2.75
The fixed Asset Turnover (FAT) ratio measures a company's efficiency in generating revenue from its fixed assets. An increase in the FAT
ratio from 2.56 in 2022 to 2.75 in 2023 indicates an improvement in the company's ability to utilize its fixed assets to generate revenue.

Analysis:

- The company's fixed assets are being utilized more efficiently to generate revenue.
- The company has likely implemented strategies to optimize asset utilization, such as:
- Better production planning and scheduling
- Improved asset maintenance and upkeep
- Enhanced employee productivity
- Effective asset allocation and deployment
- The company's revenue growth is outpacing the growth in fixed assets, indicating a more efficient use of resources.
- The company's management has made effective decisions in investing in and managing fixed assets to drive revenue growth.

Overall, the increase in the FAT ratio suggests that the company has improved its asset utilization and is generating more revenue from its
existing assets, indicating a positive trend in operational efficiency and revenue growth.

15. Total asset turnover ratio
The asset turnover ratio measures the
efficiency of a company's assets in
generating revenue or sales. It
compares the dollar amount of sales
(revenues) to its total assets as an
annualized percentage. Thus, to
calculate the asset turnover ratio, divide
net sales or revenue by the average
total assets.

16. Total asset turnover ratio analysis

Asset Turnover Analysis of Titan Company Ltd.
Asset Turnover Ratio of Titan Company Ltd. with value of 168.30 means
shows the company is generating high income by efficiently using its assets.
Asset Turnover Ratio of TITAN has grown by 10.00 % Compared to previous
Financial Year.
Asset Turnover Ratio with value of 186.24 was highest in Year Mar-19 in last
Five Years.
Asset Turnover Ratio with value of 144.28 was lowest in Year Mar-21 in last
Five Years.
Latest Asset Turnover Ratio with value of 168.30 is Greater than Average
Asset Turnover of 163.69 in last five years.
2022–168.30
2023–153.00
Growth–10 percent

18. INTRODUCTION
Profitability ratios are financial metrics
used by analysts and investors to
measure and evaluate the ability of a
company to generate income (profit)
relative to revenue, balance sheet
assets, operating costs, and
shareholders’ equity during a specific
period of time. They show how well a
company utilizes its assets to produce
profit and value to shareholders.

A higher ratio or value is commonly sought-after by most companies, as this usually means the business is
performing well by generating revenues, profits, and cash flow. The ratios are most useful when they are
analyzed in comparison to similar companies or compared to previous periods.

19. (i) Gross Profit Ratio
(ii) Operating Ratio
(iii) Operating Profit Ratio
(iv) Net Profit Ratio
(v) Return on Investment

20. GROSS PROFIT RATIO
Gross Profit Ratio = . (Gross Profit) . X 100
Revenue from Operations i.e., Net Sales

Gross Profit = revenue from Operations — Cost of Revenue From Operations

Cost of Revenue From Operations = Opening Inventory + Net Purchases + Direct
Expenses( Carriage, Wages etc.) — closing Inventory


Calculations:-




2022 2023
= . 7069 cr . X 100
30470 cr

= 23.19 %
= . 10,105 cr . X 100
40,575 cr

= 24.90 %
financial ratio that measures the profitability of a company by dividing its gross profit by net sales.

21. Operating Ratio
Operating Ratio = Cost of Revenue from Operations + Operating Expenses – Operating Income X 100
Revenue From Operations
Calculations:-
2022 2023
= . 62111 cr . X 100
40575 cr

= 153.07 %
= . 44709 cr . X 100
30470 cr

= 146.73%
the efficiency of a company's management by comparing the total operating expense (OPEX) of a company to net
sales.

22. Net Profit Ratio
Net Profit Ratio = . Net Profit . X 100
Calculations:-

Revenue From Operations
2022 2023
= . 2904 cr . X 100
39470 cr

= 7.35 %
= . 4465 cr . X 100
40575 cr

= 11.00%

Net Profit Ratio = . Net Profit . X 100



Calculations:-

the ratio of the profit after taxes to the net sales of a company

23. Operating Profit Ratio
Operating Profit Ratio= . Operating Profit . X 100
Revenue From Operations
Calculations:-
2022 2023
= 6614 cr . X 100
30470 cr

= 21.70 %
= 9495 cr X 100
40575 cr

= 23.40 %
Operating profit ratio (OPR) is a financial metric that measures a company's ability to generate earnings.

24. Return On Investment (R.O.I)
Return On Investment = net profit before interest, tax and dividends X 100
Capital Employed
calculation:-
2022 2023
= 2904 cr X 100
10682 cr

=27.18%
= 4447 cr X 100
13759 cr

= 32.32 %
Return on investment (ROI) is a ratio that measures the profitability of an investment by comparing its gain or loss
to its cost.

25. CAPITAL
MARKET
BASED
RATIOS

26. INTRODUCTION

Capital market ratios are essential financial metrics used to evaluate the
performance and value of companies in the stock market. These ratios
provide valuable insights into various aspects of a company's financial health
and are crucial for investors and analysts in making informed decisions. By
analyzing capital market ratios, investors can assess a company's liquidity,
profitability, leverage, efficiency, and market value. These ratios help in
comparing different companies, identifying trends over time, and
determining the intrinsic value of a stock. Overall, capital market ratios play a
vital role in fundamental analysis, aiding investors in understanding the true
worth and potential growth of a company's stock in the dynamic landscape of the
capital markets.

27. The main types of capital market based ratios are :

28. PRICE EARNING RATIOS
The price-to-earnings (P/E) ratio indicates how much investors are willing to pay
for a company's stock relative to the earnings the company generates. It helps
assess whether a stock is overvalued or undervalued by comparing the stock price
to the company's earnings. A high P/E ratio suggests that investors expect higher
growth from the company, while a low P/E ratio may indicate that the stock is priced
lower relative to its earnings. The P/E ratio is calculated by dividing the stock's
current price by its earnings per share, providing insights into a stock's valuation
and market expectations

29. 2022 - P/E Ratio: 103.87
●In 2022, investors were still positive about Titan's prospects but were
slightly less enthusiastic than in 2021. They were willing to pay about
103 times Titan's earnings for its stock.

2023 - P/E Ratio: 68.87
●By 2023, there was a noticeable shift in investor sentiment. While investors
were still interested in Titan, their excitement had decreased. They were now
willing to pay about 68 times Titan's earnings for its stock.

The decrease in the P/E ratio from 2022 to 2023 indicates a
decline in the level of optimism or growth expectations among
investors. This could be due to various factors such as
changes in the company's financial performance, industry
trends, economic conditions, or shifts in investor sentiment
in the broader market. It suggests that investors were more
cautious or less willing to pay a premium for Titan's stock
compared to the previous year.

30. PRICE-TO-BOOK RATIO

The Price-to-Book (P/B) ratio is a financial metric used by investors to evaluate
whether a stock is undervalued or overvalued based on the company's book value per
share. It compares the market value of a company's stock (its current price) to its
book value (the value of its assets minus liabilities). A P/B ratio below 1 may
indicate that a stock is undervalued, while a ratio above 1 may suggest that it is
overvalued. However, the P/B ratio should be used in conjunction with other
financial metrics and qualitative analysis to make informed investment decisions.

31. 2022 - P/B Ratio: 24.28
●In 2022, Titan's P/B ratio was 24.28, indicating that investors were willing to pay about
24.28 times the company's book value per share. This high ratio suggests strong
investor confidence or a premium valuation for Titan's assets.
2023 - P/B Ratio: 18.9
●The P/B ratio decreased to 18.9 in 2023, indicating a decline in Titan's valuation or a
shift in market sentiment towards a more conservative outlook. Investors were still
willing to pay a significant premium for Titan's assets, but the ratio was lower
compared to the previous year.
The decrease in Titan Company's Price-to-Book (P/B)
ratio from 24.28 in 2022 to 18.9 in 2023 likely
happened because investors became slightly less
optimistic about Titan's future growth and profitability.
This could be due to factors like market corrections,
slower earnings growth, or changes in economic
conditions and investor sentiment.

32. Solvency Ratio
Solvency ratios are a key component of the financial analysis which helps in
determining whether a company has sufficient cash flow to manage the debt
obligations that are due. Solvency ratios are also known as leverage ratios. It is
believed that if a company has a low solvency ratio, it is more at the risk of not being
able to fulfil its debt obligation and is likely to default in debt repayment.

33. Types of Solvency Ratio
●Debt to equity ratio- total liabilities / shareholders’ equity
●Debt Ratio- Long Term Debt / Capital
●Proprietary Ratio or Equity Ratio- Shareholders funds / Capital
●Interest Coverage Ratio- EBIT / interest on long term debt

34. A good debt to equity ratio is around 1 to 1.5. However, the
ideal debt to equity ratio will vary depending on the industry
because some industries use more debt financing than others.
Capital-intensive industries like the financial and
manufacturing industries often have higher ratios that can be
greater than 2.
Debt To Equity Ratio
Year 2023. 2022
Debt = 1607. =. 1138
Equity 11904. 9333
=. 0.13. =. 0.12

35. Debt To Asset Ratio
Year. 2023. 2022
Total Debt =. 1607. 1138
Total Asset 27023. 21194
= 0.059. =. 0.053
a ratio around 0.3 to 0.6 is where many investors will feel
comfortable, though a company's specific situation may yield
different results., a debt-to-equity or debt-to-assets ratio below 1.0
would be seen as relatively safe, whereas ratios of 2.0 or higher
would be considered risky.

36. Equity Ratio/ Proprietary Ratio
Year. 2023. 2022
Equity. =. 11904. 9333
Total Asset. 27023. 21194
=. 0.44. = 0.44
Equity ratios that are . 50 or below are considered leveraged companies; those with
ratios of . 50 and above are considered conservative, as they own more funding from
equity than debt.
A favorable proprietary ratio is typically 0.5 or higher, indicating that its capital funds at
least 50% of a company's assets. This ratio is useful for investors, creditors, and
financiers to assess a company's long-term credibility and risk profile.

37. Interest coverage Ratio
Mar-23. 9.36. Mar- 22 14.32.
Excellent Interest Coverage. Excellent Interest Coverage
Growth
-34.62%
Interest Coverage Analysis of Titan Company Ltd.
Interest Coverage Ratio of Titan Company Ltd. with value of 9.36
indicates the company does have sufficient profit to service its
debt.
Interest Coverage Ratio of TITAN drastically fell by -34.62 % this
year.