1.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for is Rs. 3500.99 lakhs (2010: Rs. 1867.53
 lakhs).
 
 2.  (a) Provisions – Others include :
 
 (i) Provision for warranty - Rs. 264.88 lakhs (2010: Rs. 228.48 lakhs).
 
 The Company gives warranty on all products except jewellery,
 undertaking to repair or replace the items that fail to perform
 satisfactorily during the warranty period. Warranty provisions are made
 for expected future outfl ows and determined based on past experience.
 No reimbursements are expected. Provision made and utilised/reversed
 during the year is Rs. 264.88 lakhs (2010: Rs. 228.48 lakhs) and Rs. 228.48
 lakhs (2010: Rs. 239.98 lakhs) respectively.
 
 (ii) Provision for Customer Loyalty programmes - Rs. 2330.17 lakhs (2010:
 Rs. 987.44 lakhs).
 
 The Company has schemes of reward points on purchase of certain
 products by customers which can be redeemed at the time of future
 purchases. Provision is made based on past experience. Additional
 provision made and utilised/reversed during the year is Rs. 3311.74 lakhs
 (2010: Rs. 1150.15 lakhs) and Rs. 1969.01 lakhs (2010: Rs. 643.70 lakhs)
 respectively.
 
 (b) Contingent liabilities not provided for – Rs. 5805.51 lakhs (2010: Rs.
 5351.17 lakhs) comprising of the following:
 
 Sales Tax - Rs. 412.72 lakhs (2010: Rs. 307.30 lakhs) (relating to the
 applicability of rate of tax, computation of tax liability, submission
 of certain statutory forms)
 
 Customs Duty - Rs. 316.94 lakhs (2010: Rs. 316.94 lakhs)
 
 (relating to compliance with the terms of notifi cation, export
 obligations)
 
 Excise Duty - Rs. 3331.58 lakhs (2010: Rs. 3397.79 lakhs)
 
 (relating to denial of exemption by amending the earlier notifi cation,
 computation of the assessable value, denial of input credit on service
 tax)
 
 Income Tax - Rs. 1289.78 lakhs (2010: Rs. 1238.60 lakhs) (relating to
 disallowance of deductions claimed) Others - Rs. 454.49 lakhs (2010: Rs.
 90.54 lakhs) (relating to miscellaneous claims)
 
 The above amounts are based on the notice of demand or the Assessment
 Orders or notifi cation by the relevant authorities, as the case may
 be, and the Company is contesting these claims with the respective
 authorities. Outfl ows, if any, arising out of these claims would
 depend on the outcome of the decisions of the appellate authorities and
 the Company''s rights for future appeals before the judiciary. No
 reimbursements are expected.
 
 3.  The Company had received show cause notices from the Excise
 authorities aggregating to Rs. 6391.14 lakhs without quantifying interest
 and penalty, towards excise duty on jewellery despatches. The Company
 had been legally advised that the notice is not sustainable.
 
 4.  The 6.75% debentures are redeemable at par at the end of fi ve
 years from the dates of allotment on 12 May 2006 and 9 June 2006 and
 are secured by way of legal mortgage on the immovable properties and
 plant and machinery situated at Hosur.
 
 5.  Foreign currency loan from a bank of Rs. 1487.33 lakhs (2010: Rs.
 1996.44 lakhs) is secured by a fi rst charge over the Company''s present
 and future fixed (movable and immovable) assets.
 
 6.  Non-fund based facilities availed of Rs. 25801.32 lakhs (2010: Rs.
 25963.71 lakhs) from banks are secured by a fi rst charge by way of
 hypothecation of current assets including book debts and inventories,
 both present and future.
 
 8  The security covered under notes 5 and 6 above rank pari passu. The
 security covered under note 7 rank pari passu with the security for the
 cash credit facility, which is secured by hypothecation of book debts,
 inventories, stores and spares both present and future.
 
 b) The above information and that given in Current Liabilities in
 Schedule G regarding dues to Micro Enterprises and Small Enterprises
 has been determined to the extent such parties have been identifi ed on
 the basis of information available with the Company. This has been
 relied upon by the auditors.
 
 8.  Advances from customers shown under current liabilities and
 provisions include advances received of Rs. 58779.77 lakhs (2010: Rs.
 33540.50 lakhs) towards sale of jewellery products under various sale
 initiatives / retail customer programmes.
 
 9.  The Company has given an undertaking not to sell or encumber in
 any manner its investments in TVS Wind Power Ltd in accordance with the
 Equity Participation agreement.
 
 10.  Exchange gain (net) included in the Profit and Loss Account is Rs.
 254.67 lakhs (2010: loss - Rs. 104.20 lakhs).
 
 11.  Auditors remuneration comprises of fees for audit of statutory
 accounts Rs. 85.00 lakhs (2010: Rs. 85.00 lakhs), taxation matters Rs. 24.77
 lakhs (2010: Rs. 41.41 lakhs), audit of consolidated accounts Rs. 7.00
 lakhs (2010: Rs. 7.00 lakhs), other services Rs. 21.90 lakhs (2010: Rs. 22.30
 lakhs) and reimbursement of levies and expenses Rs. 19.13 lakhs (2010: Rs.
 5.19 lakhs).
 
 12.  Excise duty of Rs. 4996.87 lakhs (2010: Rs. 2870.13 lakhs) reduced
 from gross sales in the Profit and Loss Account represents excise duty
 on sale of products.
 
 13.  Rates and taxes include the following :
 
 i) Rs. 1763.99 lakhs (2010: Rs. (-) 360.13 lakhs) being the difference in
 excise duty included in closing stock and opening stock of fi nished
 goods.
 
 ii) Rs. 3650.94 lakhs (2010: Rs. 2217.80 lakhs) being the excise duty paid
 on watch components transferred from Hosur factory to Dehradun, Baddi,
 Roorkee and Pantnagar factories.
 
 14.  Interest on fixed loans amount to Rs. 522.24 lakhs (2010: Rs. 1151.20
 lakhs).
 
 15.  The Directors'' remuneration of Rs. 511.45 lakhs (2010: Rs. 318.13
 lakhs), excluding provision for encashable leave and gratuity as
 separate actuarial valuation is not available, comprises of payments to
 the Managing Director which is inclusive of contribution to provident
 and other funds Rs. 11.02 lakhs (2010: Rs. 9.56 lakhs), perquisites Rs. 55.43
 lakhs (2010: Rs. 48.17 lakhs), leave encashment paid Rs. 44.20 lakhs (2010-
 Nil), commission of Rs. 150.00 lakhs (2010: Rs. 110.00 lakhs) and
 commission to non whole-time directors of Rs. 210.00 lakhs (2010: Rs.
 115.00 lakhs).
 
 16.  The provisions of Industries (Development and Regulation) Act,
 1951, relating to licensed capacity are not applicable to the Company.
 The installed capacity is 15 million watches (2010: 14 million
 watches), 0.32 million jewellery pieces (2010: 0.32 million jewellery
 pieces), 0.30 million clocks (2010: 0.30 million clocks) and 0.3
 million eyewear products (2010: 0.3 million eyewear products). The
 installed capacities are as certifi ed by the Management and relied
 upon by the auditors without verifi cation, being a technical matter.
 
 17.  The Company produced 1,08,53,045 watches (2010: 87,04,422 watches)
 sold 1,05,22,778 watches - Rs. 94178.74 lakhs (2010: 93,45,356 watches -
 Rs. 80352.96 lakhs) and had a closing stock of 12,72,315 watches - Rs.
 9393.82 lakhs (2010: 9,42,048 watches - Rs. 6937.46 lakhs, 2009:
 15,82,982 watches - Rs. 10318.94 lakhs).
 
 18.  The Company produced 30,957 clocks (2010: 22,775 clocks) sold
 30,158 clocks - Rs. 248 lakhs (2010: 24,475 clocks - Rs. 202.26 lakhs) and
 had a closing stock of 2,297 clocks - Nil (2010: 1,498 clocks - Nil,
 2009: 3,198 clocks - Nil).
 
 19.  The Company produced 15,10,040 jewellery pieces (2010: 13,33,198
 jewellery pieces), purchased 1,56,229 jewellery pieces - Rs. 60710.93
 lakhs (2010: 94,805 jewellery pieces - Rs. 28871.26 lakhs), sold
 15,51,794 jewellery pieces - Rs. 418500.72 lakhs (2010: 14,21,645
 jewellery pieces - Rs. 295518.39 lakhs) and had a closing stock of
 4,96,465 jewellery pieces - Rs. 127907.46 lakhs (2010: 3,81,990 jewellery
 pieces - Rs. 85981.90 lakhs, 2009: 3,75,632 jewellery pieces - Rs. 75808.74
 lakhs).
 
 20.  The Company produced 7,54,384 coins (2010: 6,40,411 coins), sold
 7,21,560 coins - Rs. 78117.41 lakhs (2010: 6,69,746 coins - Rs. 53621.00
 lakhs) and had a closing stock of 95,302 coins - Rs. 4790.14 lakhs (2010:
 62,478 coins - Rs. 2906.33 lakhs, 2009: 91,813 coins - Rs. 1843.45 lakhs)
 
 21.  The Company produced 1,36,037 eyewear products (2010: 23,535
 eyewear products) sold 1,39,623 eyewear products - Rs. 1295.13 lakhs
 (2010: 14,542 eyewear products - Rs. 93.11 lakhs) and had a closing stock
 of 5,407 eyewear products - Rs. 6.65 lakhs (2010: 8,993 eyewear products
 - Rs. 14.01 lakhs , 2009: Nil)
 
 22.  The Company produced 106 machines (2010: 60 machines), capitalised
 1 machine (2010: 1 machine), and sold 105 machines - Rs. 4141.22 lakhs
 (2010: 59 machines - Rs. 2592.54 lakhs), and had a closing stock of Nil
 (2010: Nil machine - Rs. Nil; 2009: Nil machine - Rs. Nil).
 
 23.  The Company purchased 34,31,384 watches - Rs. 16187.75 lakhs (2010:
 15,73,886 watches - Rs. 7873.36 lakhs), sold 30,74,880 watches - Rs.
 29575.08 lakhs (2010: 16,90,916 watches - Rs. 18681.83 lakhs) and had a
 closing stock of 738,586 watches - Rs. 7094.36 lakhs (2010: 3,82,082
 watches - Rs. 3471.28 lakhs , 2009: 4,99,112 watches - Rs. 4310.18 lakhs).
 
 24.  The Company purchased Nil clocks (2010: Nil clocks), sold 786
 clocks - Nil (2010: 271 clocks - Nil) and had a closing stock of 55
 clocks - Nil (2010: 841 clocks - Nil, 2009: 1112 clocks - Nil).
 
 25.  The Company purchased 31,01,204 eyewear products - Rs. 6392.72 lakhs
 (2010: 16,34,029 eyewear products - Rs. 4252.17 lakhs), sold 25,18,750
 eyewear products - Rs. 14371.07 lakhs (2010: 14,80,614 eyewear products -
 Rs. 9536.07 lakhs) and had a closing stock of 10,10,367 eyewear products
 - Rs. 2571.01 lakhs (2010: 4,27,913 eyewear products - Rs. 1223.78 lakhs,
 2009: 2,74,498 eyewear products - Rs. 947.15 lakhs).
 
 Eyewear products include sunglasses, frames, ready readers and lenses.
 
 26.  Sales includes sale of scrap Rs. 521.29 lakhs (2010: Rs. 591.98
 lakhs), sale of accessories Rs. 10223.62 lakhs (2010: Rs. 7870.00 lakhs),
 sale of tools and components Rs. 1246.12 lakhs (2010; Rs. 715.83 lakhs),
 sale of gold Rs. 1168.05 lakhs (2010: Rs. 788.09 lakhs), sale of precious
 and semi-precious stones Rs. 3230.80 lakhs (2010: Rs. 2625.95 lakhs),
 income from services provided Rs. 269.41 lakhs (2010: Rs. 246.83 lakhs) and
 is net of turnover based commission of Rs. 13313.28 lakhs (2010: Rs.
 9553.38 lakhs) and all discounts, including cash discount of Rs. 772.26
 lakhs (2010: Rs. 644.17 lakhs).
 
 27.  Revenue expenditure directly attributable to research and
 development is estimated at Rs. 301.69 lakhs (2010: Rs. 257.01 lakhs).
 
 28. Current liabilities do not include any amount to be credited to
 Investor Education and Protection Fund except where there are pending
 legal cases amounting to Rs. 1.39 lakhs (2010: Rs. 1.30 lakhs) and
 therefore, amounts relating to the same could not be transferred.
 
 b.  Defined Benefit Plans 
 
 (i) Funded
 
 (a) Contributions are made to the Company''s Employees Provident Fund
 Trust at predetermined rates in accordance with the Fund rules. The
 interest rate payable by the Trust to the benefi ciaries is as notifi
 ed by the Government. The Company has an obligation to make good the
 shortfall, if any, between the return from the investments of the Trust
 and the notifi ed interest rate and recognizes such shortfall as an
 expense. There is no shortfall in the interest payable by the Trust to
 the benefi ciaries as on the Balance Sheet date.
 
 (b) The Company makes annual contributions to the Titan Industries
 Gratuity Fund. The scheme provides for lumpsum payment to vested
 employees at retirement, death while in employment, or on termination
 of employment as per the Company''s Gratuity Scheme. Vesting occurs upon
 completion of five years of service.
 
 The estimate of future salary increases considered, takes into account
 the infl ation, seniority, promotion, increments and other relevant
 factors.
 
 29.  a) Gold futures/forwards contracts outstanding as at the year end
 - 26 kgs, Rs. 547.51 lakhs (2010: 390 Kgs, Rs. 6410.04 lakhs)
 
 b) The Company has an outstanding swap to hedge its foreign currency
 and interest rate exposures relating to foreign currency loan of US
 Dollars 3.33 million (2010: US Dollars 4.44 million) equivalent to Rs.
 1487.33 lakhs (2010: Rs. 1996.44 lakhs).
 
 The Company has twelve forward exchange contracts outstanding for US
 Dollars 1.75 million equivalent to Rs. 779.68 lakhs (2010: 2 forward
 exchange contracts for US Dollars 1.8 million; equivalent to Rs. 808.20
 lakhs), one forward exchange contract for Euros 0.09 million equivalent
 to Rs. 53.98 lakhs (2010: one forward exchange contract for Euros 0.06
 million equivalent to Rs. 36.87 lakhs) and three forward exchange
 contracts for HKD 1.8 million equivalent to Rs. 102.98 lakhs (2010: Nil)
 to hedge foreign currency risk of fi rm commitment of sales. Further,
 the Company also has sixteen forward exchange contracts for US Dollars
 22.83 million equivalent to Rs. 10185.30 lakhs (2010: Nil), nil forward
 exchange contracts for HKD (2010: one forward exchange contract for HKD
 13.60 million equivalent to Rs. 822.80 lakhs) and one forward exchange
 contract for in Swiss Francs 0.13 million equivalent to Rs. 61.41 lakhs
 (2010: Nil) for firm commitment of purchases.
 
 Marked to Market loss of Rs. 118.08 lakhs (2010: Rs. 219.42 lakhs) has been
 recognised in the Profit and Loss Account on these outstanding
 contracts.
 
 30.  Related party disclosures :
 
 Names of related parties and description of relationship:
 
 a) Promoters : Tamilnadu Industrial Development Corporation Ltd.
 
 Tata Sons Ltd.
 
 b) Subsidiaries : Titan TimeProducts Ltd.
 
 Tanishq (India) Ltd.
 
 Titan Properties Ltd.
 
 Titan Mechatronics Ltd. (up to 30 March 2010)
 
 c) Associate : TVS Wind Power Ltd. (from 22 March 2011)
 
 d) Key Management Personnel : Mr. Bhaskar Bhat, Managing Director
 
 31. A Petition has been filed by the Company''s subsidiary Tanishq
 (India) Limited as the Transferor Company, seeking sanction to the
 Scheme of Amalgamation with the Company on the appointed date i.e. 1
 April 2010. No shares of the Company are to be issued pursuant to the
 Scheme. Based on the application made under section 391 of the
 Companies Act, 1956, the Karnataka High Court having jurisdiction over
 the Transferor Company has granted dispensation of the meetings of
 shareholders and creditors of the Transferor Company. Final order
 sanctioning the said scheme of Amalgamation as aforesaid is awaited.
 
 32.  The figures of the previous year have been regrouped/recast,
 where necessary, to conform to the current year classification.