TITAN COMPANY SEC 38 / 2021-22 5th July 2021 The General Manager, DCS - CRD The General Manager, DCS - CRD BSE Limited National Stock Exchange of India Ltd CorporateRelation ship Department Exchange Plaza, 1st Floor, New Trading Ring Bandra-Kurla Complex, Rotunda Building, P J Towers Bandra (East), Dalal Street, Fort, MUMBAI - 400 051 MUMBAI - 400 001 Symbol: TITAN Scrip Code: 500114 Dear Sir/Madam, Sub.: Notice of the 37th Annual General Meeting (' AGM') of the Company forFY 2020- 21 as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations') and Annual Report for the financial year 2020-21 Pursuant to Regulation 30 read with paragraph A of Part A of Schedule III of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 (Listing Regulations), attached herewith is the Notice and the Explanatory Statement of the 37th Annual General Meeting of the Company to be held on Monday, 2nd August 2021 at 2.30 p.m. (1ST) via two-way Video Conference I Other Audio Visual Means. The said Notice forms part of the Annual Report 2020-21 and is being sent through electronic mode to the shareholders of the Company. Also, pursuant to Regulation 34(1) of the Listing Regulations, please find enclosed the Annual Report of the Company for FY21. The Annual Report for FY 2020-21 is available on the website of the Company at https://www.titancompany.in/sites/default/files/Titan%20Annual%20Report%202021.pdf This is for your information and records. Thanking You, Yours Truly, For ITAN COMPANY LIMITED inesh Shetty General Counsel & Company Secretary Titan Company Limited 'INTEGRITY' No.193, Veerasandra, Electronics City P.O OffHosur Main Road, Bengaluru - 560 100 India, Tel: 9180- 67047000, Fax: 9180- 67046262 Registered OfficeNo.3, SIPCOT Industrial Complex Hosur 635 126 TN India, Tel 91 4344 664 199, Fax 91 4344 276037, CIN: L74999TZ1984PLC001456 www.titancompany.in A TATA Enterprise TITAN COMPANY LIMITED 37th Annual Report 2020-21 Welcome to Titan Company Annual Report 2020-21 Contents Pg 01-58 Pg 59-141 Corporate Overview Statutory Reports 02 About Titan 59 Notice of 37th AGM 06 Highlights of the Year 73 Board’s Report & Annexures Scan the above QR code 08 Letter from the 101 Management Discussion and Analysis to read the report on Managing Director 107 Corporate Governance Report your hand-held devices. 12 Extraordinary Technology, 131 Shareholder Information Extraordinary Connect 134 Business Responsibility Report 16 Extraordinary People, Extraordinary Company Pg 142-300 20 Extraordinary Products, Financial Statements Extraordinary Future To download this report or for any other information log on to 26 Climate Change and Standalone Financial Statements www.titancompany.in Sustainability at Titan 142 Independent Auditor’s Report 29 Creating Value towards 152 Balance Sheet the Community 153 Profit & Loss Account 33 Approach to Reporting 154 Statement of Changes in Equity 35 Materiality Approach 155 Cash Flow Statement 42 Our Business Model 157 Significant Accounting Policies 51 Diversity, Equity and Inclusion 172 Notes to Financial Statements 52 Awards Consolidated Financial Statements 54 Board of Directors 218 Form AOC-1 58 Corporate Information 220 Independent Auditor’s Report 228 Balance Sheet 229 Profit & Loss Account 230 Statement of Changes in Equity 231 Cash Flow Statement 233 Significant Accounting Policies 250 Notes to Financial Statements 299 Financial Statistics They say that when the going gets tough, the tough get going. As the pandemic swept over the country, with customers being forced to stay at home and shops being shuttered down,Titan’s resolute store staff refused to let despondency defeat them. Dedicated, accessible and Once the lockdown was lifted, they trustworthy, our retail and store proactively rolled up their sleeves employees are the beating heart and set out to ensure that shops and retail outlets become safe and of our principal proposition of desirable destinations, as they were delivering customer satisfaction before. Attired in Personal Protective and seamless alignment with Equipments (PPEs), they managed customer needs. stores, showcased the products and reached out to customers. Sacrificing personal commitments and without fear, they ensured that the shop floors, aisles and displays were safe and ready to welcome back shoppers. Pushing the boundaries of selfless service and customer centricity, the retail staff are our pride and joy, inspiring each of us to seek out opportunities and stay anchored in values during these uncertain times. 02 TITAN COMPANY LIMITED Annual Report 2020-21 About TItaN Titan is today one of the country’s most admired and respected companies. With a corporate lineage tracing back to the Tata Group and Tamilnadu Industrial Development Corporation (TIDCO), Titan has transformed itself from being one of the world’s largest integrated watch manufacturer with an enviable distribution footprint, to a premier lifestyle Company with a presence in the jewellery, watches, fragrances, eyewear and Indian dress wear segments. Driven by the relentless pursuit of excellence and credo of customer-centric innovation, Titan products today touch the daily lives of millions of consumers. The Company’s quality and design proposition and personalised service orientation has been a key differentiator enabling it to build a deep customer connect. The Company continues to invest in the latest technology for facilitating seamless and immersive shopping experiences. Titan’s growth is led by its dedicated and talented people. Underpinned by its unwavering commitment to crafting a sustainable and environment-friendly world and building long-term mutually beneficial relationships with all its partners and stakeholders, while always staying rooted to the Tata ethos and values, the Company remains focussed on creating long-term value. Our Vision Our Values and Standards WE create elevating Total Customer Orientation EXPERIENCES FOR THE PEOPLE Customers take precedence over everything else, always. WE TOUCH AND significantly impact THE WORLD WE WORK IN. Employee Appreciation We value and respect Titanians and endeavour to fulfil their needs and aspirations. Performance Culture and Teamwork At Titan, high performance is a way of life and is Our Mission nurtured by teamwork. Creativity and Innovation We continue to grow and set new standards for innovation WE WILL DO THIS THROUGH and quality with each new offering. A PIONEERING SPIRIT AND A CARING, valUE-DRIVEN Passion for Excellence CUltURE that FOSTERS In all our pursuits, we ceaselessly strive for excellence. innovation, DRIVES PERFORMANCE AND ENSURES Corporate Citizenship THE HIGHEST GLOBAL Titan believes in being a responsible corporate citizen and standards IN everything proactively engages in issues customer-centricity it operates WE DO. in and the environment in general. About Titan 03 TitaN 01-58 IN NUMBERS as of 31st March 2021 CORPORATE CORPORATE $2.7 billion $19 billion Store reach O Annual Revenue Market Cap 1,909 stores with 2.5 million square VERVIEW feet of retail space 59-141 One of the largest 7,235 watchmakers globally 662 Employee strength Watch care centres in 241 cities S TAT U TOR Y REPORT S 14 11 4 Taneira stores across 6 cities Manufacturing and Featured 4 times in 142-300 assembly facilities Forbes’ Asia Fab Fifty F I N A NC IA 4 7,000+ L S State of the art karigar TATE multi-brand centres incorporating watch outlets M industry best practices E N T S 04 TITAN COMPANY LIMITED Annual Report 2020-21 Brand at a Glance Luxury Premium Mid-Market Mass Market Watches Jewellery Eyewear Perfumes Sarees Licensed Brands Financial Highlights 05 Financial Highlights 01-58 Total Income PBT ` 20,783crore ` 1,233crore 2020-21 2020-21 CORPORATE CORPORATE ` 20,156 crore ` 2,105 crore 2019-20 2019-20 Change Change 3% -41% O VERVIEW EBIDTA PAT ` 1,745crore ` 877crore 59-141 2020-21 2020-21 ` 2,564 crore ` 1,517 crore 2019-20 2019-20 Change -32% Change -42% S TAT U TOR Y REPORT ROE Market Cap 12% ` 1,38,322crore S 2020-21 as on 31st March 2021 22% ` 82,893 crore 142-300 2019-20 as on 31st March 2020 Change -48% Change 67% ROCE F I N A NC IA 22% L S 2020-21 TATE M 35% E N 2019-20 T S Change -37% 06 TITAN COMPANY LIMITED Annual Report 2020-21 Highlights of the Year Tanishq launched Ekatvam collection Zoya launched Mia by Tanishq Rooted launched The collection Princess Edit Tanishq launched Aarambh collection Titan launched Launched Titan Raga Grandmaster Garden of Eden collection collection 01-58 CORPORATE CORPORATE 07 O VERVIEW X 59-141 Highlights of the Year Sonata launched Connected smartwatch Launched Titan Pay, Launched Titan Pay, first payment India’s watch S TAT U TOR Y REPORT S 142-300 Launched high-performance smartwatch, TraQ F I N A NC IA L S TATE M E N T Fastrack launched collection Ruffles S Launched Edge Mechanical Slim - The Limited Edition Edge Mechanical watch is coming together of world-class engineering and design which is the slimmest mechanical movement made by Titan 08 TITAN COMPANY LIMITED Annual Report 2020-21 Letter from the Managing Director Dear Shareholders, These are unprecedented times. The second wave of Covid-19 has had a tragic impact all around us. We have lost many of our colleagues to the virus. The suffering has been immeasurable. On behalf of Titan, we offer our deepest condolences to those who have lost their family members. To me, the abiding memory Amidst all the trials and tribulations of It was only fair that Titan Company of last year was the image FY21, heartening stories of hope and took care of this large family during courage continued to emerge: women an economically and emotionally of the retail sales officer and men demonstrating extraordinary challenging year. From pay protection working in the stores of resilience and dedication, going above to job protection to hospitalisation Titan Company.