A DISSERTATION REPORT

ON
“Financial Analysis of Bata India”

BACHELOR OF BUSINESS
ADMINISTRATION (BBA)
(Affiliated to Mahatma Gandhi Kashi Vidyapith Varanasi, Uttar Pradesh)

BATCH- 2021-2024

Under Supervision of: Submitted By:

Mr. Suraj Prakash Singh Nikunj Kejriwal

SMS VARANASI BBA ( VITH Semester)
ROLL NO:-BBA2125126
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 ACKNOWLEDGEMENT

First, I would like to thank almighty for keeping me healthy and active because of which I was

able to complete my project successfully.

I express my greatest gratitude to our Prof. P.N. JHA (Director) of SMS, Varanasi who gave

me such a great opportunity to work on a project where I can show my creativity, my mentor

Mr. Suraj Prakash Singh SMS Varanasi for providing me knowledge, guidance, and full

cooperation extended during the perusal of my project.

And at the last but not the least I would like to thank (Head of management department), Mr.

Atish Khadse Coordinator of BBA, SMS VARANASI who helped me and enlighten my path.

This report is the outcome of the support which I have received from people directly or

indirectly.

Finally, I would like to show my gratitude to all my family members, friends, faculty members

of SMS, Varanasi whose guidance have helped to complete this report.

Thanks!

3
 DECLARATION

I, Nikunj Kejriwal, hereby declare that my report “Financial Analysis of

Bata India” entitled is a project work carried out by me independently.
The information presented in the report is correct to the best of my
knowledge and analysis is as per the norms and guidelines of the report. I
have utilized the required concepts and applied the relevant methodologies
to analyses the data collected to reach the conclusion.

I claim this report to be my indigenous work and have not presented it

anywhere else for any purpose.

Nikunj Kejriwal
BBA (VITH Semester)
ROLL NO :-BBA2125126

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 PREFACE

BBA is a stepping stone to the management career . In order to achieve practical, positive
and concrete results, the classroom learning needs to be effectively fed to the realities of
the situations existing outside the classroom.

This is particularly true of management. Management students have good conceptual

knowledge of business activities is somewhat in adequate. Doing a project work on a
particular topic needs a lot of detailed study. It gives a better understanding and
knowledge. As a part of curriculum, it is exigent for the students pursuing the course to
do a Dissertation project in this course. The study project undertaken was on the topic: -
“Financial Analysis of Bata India”

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 CONTENTS

1. Industry Overview

2. Company Overview

3. About the project

4. Research Methodology

5. Data Analysis and Data Interpretation

6. Findings

7. Limitations

8. Bibliography

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 1) INDUSTRY OVERVIEW

Indian cowhide industry is the center quality of the Indian footwear industry. It is the motor of

development for the whole Indian cowhide industry and India is the second biggest worldwide

maker of footwear after China.

Presumed worldwide brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike,

Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are made

under permit in India. Moreover, numerous worldwide retail chains looking for quality items at

serious costs are effectively sourcing footwear from India.

While cowhide shoes and uppers are delivered in medium to enormous scope units, the shoes and

chappals are created in the family unit and cabin area. The business is ready for receiving the

advanced and best in class innovation to suit the demanding universal necessities and norms.

India creates a greater amount of gent's footwear while the world's significant creation is in

women footwear. On account of houses of prayer and shoes, utilization of non-cowhide material

is common in the residential market. Calfskin footwear sent out from India are dress shoes,

casuals, slippers, sport shoes, horrachies, shoes, ballet performers, boots. Non-cowhide footwear

sent out from India are Shoes, Sandals and Chappals made of elastic, plastic, P.V.C. also,

different materials. With changing ways of life and expanding wealth, household interest for

footwear is anticipated to develop at a quicker rate than has been seen. There are as of now

numerous new household brands of footwear and numerous unfamiliar brands, for example,

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Nike, Adidas, Puma, Reebok, Florsheim, Rockport, and so forth have additionally had the option

to enter the market.

The footwear division has developed from the degree of manual footwear fabricating strategies

to robotized footwear producing frameworks. Numerous units are furnished with In-house

Design Studios joining best in class CAD frameworks having 3D Shoe Design bundles that are

natural and simple to utilize. Numerous Indian footwear industrial facilities have additionally

gained the ISO 9000, ISO 14000 just as the SA 8000 accreditations. Phenomenal offices for

Physical and Chemical testing exist with the research facilities having tie-ups with driving

universal offices like SATRA, UK and PFI, Germany. One of the central point for

accomplishment in specialty worldwide style markets is the capacity to provide food them with

the most recent structures, and as per the most recent patterns. India, has increased worldwide

conspicuousness in the territory of Colors and Leather Texture estimating through its exceptional

achievement in MODEUROP. Structure and Retail data is consistently made accessible to

footwear makers to help them appropriately address the season's necessity. The Indian Footwear

Industry is equipping to use its qualities towards expanding benefits. Quality of India in the

footwear area starts from its order on solid flexibly of assets as crude stows away and skins,

quality completed calfskin, huge introduced capacities with respect to creation of completed

cowhide and footwear, enormous human capital with mastery and innovation base, gifted labor

and moderately ease work, demonstrated solidarity to deliver footwear for worldwide brand

pioneers and gained innovation skill, especially for mid and extravagant footwear portions. Asset

quality of India as materials and gifted labor is a near favorable position for the nation.

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India has risen lately as a moderately advanced low to medium cost provider to world markets –

The calfskin business in India has been focused by the Central Government as a motor for

monetary development. Dynamically, the Government has goaded and enacted a hesitant

industry to modernize. India was noted as a provider of rawhides and skins semi prepared

calfskin and a few shoes. In the 1970's, the Government at first restricted the fare of crude covers

up and skins, followed this by constraining, at that point halting the fare of semi handled calfskin

and urging neighborhood tanneries to make completed cowhide themselves. In spite of

protestations from the industrialists, this has brought about a checked improvement in the shoe

producing industry. India is currently a significant provider of calfskin footwear to world

markets and can possibly match China later on (60% of Chinese fares are manufactured shoes).

India is frequently alluded to as the dormant beast in footwear terms. It has an introduced limit of

1,800 million sets, second just to China. The majority of creation is in men's cowhide shoes and

calfskin uppers for the two men and women. It has more than 100 completely automated, current

shoe making plants, tantamount to anyplace on the planet (counting Europe). It makes for some

upmarket brands including Florsheim (US), Lloyd (Germany), Clarks (UK), Marks and Spencer

(UK).

India has had blended fortunes in its ongoing fare execution. In 2000, fares of shoes were US$

651 million; in 2001 these expanded to 663 million however declined in 2002 to 623 million

dollars (See Statistics). The fundamental markets for Indian cowhide shoes are UK and USA,

which between them take about 55% of complete fares. India has not yet arrived at its maximum

capacity regarding a world provider. This is expected mostly to nearby dairy animals cowhide

that albeit abundant, has a greatest thickness of 1.4 – 1.6mm, and the socio/political/foundation

9
of the nation. Be that as it may, India is an incredible provider of calfskin uppers. Importation of

uppers from India doesn't encroach FTA with Europe or the USA.

The potential is set to change though gradually, however with a populace matching China for

size, there is no uncertainty the tussle for global control in footwear gracefully is between these

two nations.

Few Interesting Facts:

• The Indian footwear retail advertise is relied upon to develop at a CAGR of over 20% for the

period crossing from 2008 to 2011.

• Footwear is relied upon to contain about 60% of the all out cowhide trades by 2011 from over

38% in 2006-07.

• Presently, the Indian footwear advertise is ruled by Men's footwear showcase that represents

almost 58% of the absolute Indian footwear retail showcase.

• By items, the Indian footwear advertise is overwhelmed by easygoing footwear showcase that

compensates for almost two-third of the absolute footwear retail advertise.

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• As footwear retailing in India stay concentrated on men's shoes, there exists a plenty of chances

in the selective women's and children's footwear portion with no sorted out retailing chain having

a national nearness in both of these classes.

• The Indian footwear showcase scores over other footwear markets as it gives benefits like

minimal effort of creation, bountiful crude material, and has gigantic utilization advertise.

• The footwear part industry additionally has huge open door for development to oblige

expanding creation of footwear of different sorts, both for fare and household advertise.

In a Nutshell:

There are about 4000 units occupied with assembling footwear in India. The business is ruled by

little scope units with the absolute creation of 55%. The all out turnover of the footwear business

including cowhide and non-calfskin footwear is evaluated at Rs.8500-9500 crore

(Euro 551.3-1723.1 Million) including Rs.1200-1400 crore (Euro 217.6-253.9 Million) in the

household segment.

India's share in global leather footwear imports is around 1.4% Major Competitors in the export

market for leather footwear are China (14%), Spain (6%) and Italy (21%).

The footwear business exist both in the conventional and current division. While the customary

division is spread all through the nation with pockets of fixation providing food to a great extent

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to the residential market, the cutting edge segment is to a great extent bound to choose focuses

like Chennai, Ambur, Ranipet, Agra, Kanpur and Delhi with the vast majority of their creation

for send out.

Sequential construction system creation is sorted out, and about 90% of the workforces in the

motorized part in South India comprise of ladies. Truth be told, this area has opened up a lot of

work open doors for ladies who have no past understanding. They are prepared to play out a

specific capacity in the plant itself. Inspirational Outlook for footwear and cowhide industry:

Highlights CII Study

The National Manufacturing Competitiveness Council (NMCC) has recognized the division as

one of the twelve center assembling segments as far as intensity and undiscovered potential in

the nation.

The division is one of the main eight unfamiliar trade workers of the nation worth Rs. 10,000

crores for every annum and representing 2.5 percent of the worldwide calfskin related exchange

of Rs. 387,200 crores. An expected 15 percent of complete acquisition of driving worldwide

brands in footwear, articles of clothing, calfskin products and adornments, in Europe, and 10

percent of worldwide flexibly is re-appropriated from India.

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Thinking upon the current situation, the Report expresses that the calfskin business utilizes about

2.5 million individuals and has yearly turnover of Rs. 25,000 crores. About 60-65 percent of the

creation is finished by little/house part. In line with the entire division, the Indian footwear

industry also acquires 90 percent creation in SMEs, having around 42,000 units enlisted under

SSI, amassed generally in Agra, Kanpur and Tamil Nadu. The majority of the SSI units are

additionally into the creation of non-cowhide footwear. The footwear section is the pride of

India's calfskin industry, and positions second on the planet, close to China. The worldwide

exchange calfskin footwear is US$ 30 billion and in non-cowhide footwear is US$ 18 billion;

anyway India's offer in the two fragments is just negligible - 1.4 percent and 0.15 percent

separately.

Over the most recent five years, the calfskin footwear and footwear part creation expanded by 60

percent, the utilization of footwear in provincial India is 75 percent of the aggregate. An

intriguing part of India's footwear industry is that India creates a greater amount of gentlemen's

footwear while the world's significant creation is in women footwear. Dissecting the fare -

import capability of the segment, the Report illuminates that imports for the most part involve

covers up and skins, semi completed and completed cowhide. Item imports are low.

Then again, right around 50 percent of the absolute residential creation is sent out. Almost 75

percent of the all out fare of footwear parts is from the Southern Region, the Northern Region,

being a helpless second with 13 percent. Expanded estimation of fare of footwear from Rs

2957.5 crores in 2005 to Rs. 11,000 crores by 2012 is visualized. Yearly fare profit from the

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Footwear and Leather part were US$ 2.1 billion out of 2003-04 and the segment positions eighth

among the main 10 segments in India's fare list at 2.74 percent.

Notwithstanding the worldwide market, Indian Leather Industry is yet to catch the current

undiscovered potential in the residential market. India has a huge and developing customer class

(yearly pay > US$ 449), assessed to comprise almost 90 million family units by 2006 - 07,

having with a CAGR around 12 percent. This is a huge and developing business sector for

Footwear and Leather merchandise, the Report additionally focused.

The particular points of interest of the Footwear and Leather industry in India, featured in the

Report are low costs; assortment and wealth of crude material; quality awareness and back up; R

and D offices with expansion support empowers India as a critical member on the planet

Footwear and Leather showcase. According to the current situation; the Footwear and Leather

Industry in India is spread to a great extent over disorderly part, containing tanning and

completing, footwear and footwear segments, cowhide articles of clothing, calfskin merchandise

including saddlery and outfit, and so on. Worrying on the improvement regions in foundation

and interest in the Sector, the Report expresses that an expected interest in the whole footwear

and calfskin division in India is roughly Rs. 4,500 crores and yearly creation is at Rs. 22,000

crores.

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In any case, India appears to have passed up a major opportunity the interests in the footwear

business with China getting the vast majority of the advantage by pulling in multiple times a

larger number of ventures than India over the most recent 20 years. It tends to be said that India

has not been alive to its potential in this issue. India's misfortune has been China's benefit. India's

absences of consciousness of its latent capacity and its late acknowledgment of this area have

been to be made acceptable expediently.

Despite the fact that the Leather Industry, particularly the Footwear business has made a solid

commitment to the Indian economy, India's offer in worldwide exchange stays low, anyway

being a work escalated industry, its commitment to business is huge.

In an ongoing report completed by NMCC, it was featured that all out work in this area would

add up to 2.5 million (30 percent of which are ladies). Footwear industry gives work to the

uneducated populace - 40 percent of business is spoken to by incompetent laborers

accomplishing table work activity in the sequential construction system.

Huge work openings on the info side - minority network and low station individuals have their

sole wellspring of employment from gathering bodies, cleaning dead creatures and tanning

cowhide. The Footwear business can possibly give work over all areas of the economy Industry

assessments of business potential 3 lakh occupations in next 3 years. The potential for work is

over all aptitudes to the tune of semi-talented and untalented workers - 92 percent; specialized

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administrative, shop floor - 7 percent; business people, ranking directors and technologists - 1

percent. Indian Footwear and Leather industry is plainly hopeful about what's to come. To

extend this positive thinking, State Governments must guarantee that they can make an alluring

and empowering condition. CII accepts this can be accomplished through receptiveness to

ventures, great administration and hearty framework. Import Export of Footwear and Leather

Products

Indian Footwear Industry in a Nutshell: -

Second largest footwear producer after China

2.06 billion pairs produced in an year

16 % of the global production is produced in India

Contract manufacturers supply to leading global brands

644 Member produces situated as clusters at Chennai, Ambur, Ranipet, Kanpur, Agra,

Mumbai, Delhi and Karnal.

The fare of Leather and Leather Products for the period April-March 2007-08 contacted

US$3477.52 million against the presentation of US$3059.43 million in the comparing time of a

year ago, enlisting a positive development of 13.67% in Dollar Terms. In rupee terms the fare

contacted Rs.140007.33 million against the earlier year's presentation of Rs.138437.84 million

demonstrating a positive development of 1.13%.

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The fare an incentive during 2012-13 was updated upwards by DGCI&S, from US$2981,79

million (Rs.134924.39 million) to US$3059.43 million {Rs.138437.84 million).

Major Highlights

• Export of Footwear (cowhide, footwear parts and non-Leather footwear) has expanded from

US$1236.91 million in April-March 2006-07 to US$1475.83 million in April-March 2007-08,

enrolling a development of 19.32%

• In Dollar terms, Leather footwear has alone developed by 19.45%, footwear segments by

21.05% and Non-Leather footwear by 7.39%

• Export of Leather Garments has expanded by 11.00%, Saddlery and Harness by 28.53%, and

Leather Goods by 11.14%

• Export of Finished Leather has expanded by 5.93%.

Major Production Centers

The major production centers for footwear and leather products are located in:

Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Trichy

West Bengal - Kolkata

Uttar Pradesh - Kanpur, Agra & Noida

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 Punjab - Jallandhar

Karnataka - Bangalore

Andhra Pradesh - Hyderabad

Haryana - Ambala, Gurgaon, Panchkula and Karnal

Delhi

COMPANY OVERVIEW

Bata India Ltd is the biggest footwear retailer and the pioneer in the footwear business in India.

The organization is occupied with the matter of assembling and exchanging of footwear and

adornments through their retail and discount arrange. Their items incorporate cowhide footwear

elastic/canvas footwear and plastic footwear. They are having their creation offices at Batanagar

in West Bengal Patna and Hathidah in Bihar Faridabad in Haryana Bangalore in Karnataka and

Hosur in Tamilnadu. Their completely claimed auxiliaries incorporate Bata Properties Ltd

Coastal Commercial and Exim Ltd. also, Way Finders Brands Limited.Bata India Ltd was

consolidated in the year 1931 as Bata Shoe Company Pvt Ltd in Konngar West Bengal which

was then moved to Batanagar. Batanagar was the principal producing office in the Indian shoe

industry to get the ISO 9001 affirmation. The organization opened up to the world in 1973. They

changed their name to Bata India Ltd. Throughout the years the organization has built up an

administration position in the footwear business and is effectively the most confided in name in

marked footwear. The organization has gone into a concurrence with Bata Ltd of Toronto

Canada for flexibly of specialized skill and administrations, for example, Footwear innovation

and configuration brand advancement item improvement retailing and data frameworks for a

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time of ten years from January 1 2001.The organization stowed the Retailer of the year grant for

the year 2006 in the footwear class as a piece of the Reid and Taylor Award for Retail

Excellence which was introduced during the Indian Retail Summit 2006. They got the nation's

most pined for Retail Award at the fourth Images Retail Awards (IRA) 2007.The Company was

regarded with Most Admired Brand of the year 2006-07 in Footwear classification. They were

evaluated as one of the Top 10 super brands in India and granted Super Brands Award on April

12 2007. In February 21 2008 they were given AMITY Corporate Excellence Award 2008. This

honor was given for Bata's astounding exhibition and retail development during 2007.The

organization went into a joint advancement concurrence with Calcutta Metropolitan Group Ltd

for creating around 262 sections of land of land in Batanagar. The organization shaped a

particular reason vehicle called Riverbank Holdings Pvt. Ltd. The improvement of 262 sections

of land was part into two sections IT SEZ for 25 sections of land created by Riverbank Holdings

Pvt. Ltd and the staying 237 sections of land will be finished by the new organization Riverbank

Developers Pvt. Ltd. In the year 2009 the organization opened 69 new Bata stores which are all

in huge arrangement with a normal of more than 3000 square feet. They likewise revamped 40

existing stores and shut down 73 stores which were in little organization and unviable. In the

year 2010 the organization won the 'Customer Awards 2010' as 'India's Most Preferred Retailer'

given by CNBC Awaaz. The organization opened 108 new huge arrangement stores over every

single significant town in India. Bata India reestablished its Technical Collaboration Agreement

with Global Footwear Services Pte. Ltd. Singapore (GFS) with impact from 1 January 2011 for a

time of ten years. As far as the said Technical Collaboration Agreement Bata India gets direction

preparing of work force and administrations from GFS regarding research and advancement

showcasing brand improvement footwear innovation testing and quality control store area format

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and structure condition wellbeing and danger and protection the board and so on. Perceiving

needs of the youthful shoppers Bata India made new retail idea - Footin in the year 2012. It is

another plan of action with an alternate way to deal with oblige the youthful clients who are style

cognizant and pattern wise customers and need quality product at moderate price.Bata India

changed the budgetary year from January-December to April-March and stretched out the money

related year to 31 March 2015 covering a time of fifteen months. During the period under survey

because of certain sudden issues with the execution of new gracefully chain IT frameworks the

retail locations of the organization couldn't be provided with satisfactory supplies of footwear

and adornments. Therefore the organization's exhibition for the fourth and fifth quarter in 2014-

15 was antagonistically influenced. So as to improve volume and productivity the organization

made different strides during the period under audit for example activities to accomplish same

store development venture behind new channels and stores cost control and labor defense.

During the period under audit Bata India proceeded with its modernization plans at its

Manufacturing Units at Batanagar - West Bengal Bataganj - Bihar and Southcan - Karnataka.

The modernization plans executed in these Manufacturing Units have improved nature of the

items and furthermore expanded profitability. During the multi month time span finished 31

March 2015 Bata India opened 159 new retail locations across India. The new stores are bigger

in size and depend on worldwide plan making them look total and alluring with satisfactory

space to show the items. The year 2014-15 was an achievement year for Bata India's exceptional

footwear brand Hush Puppies as it finished 20 years of its reality in India. During the period

under audit Hush Puppies tried to re-position itself as another International Premium Lifestyle

Casual Footwear brand. During the period under survey Bata India further reinforced its client

care division. Following an effective pilot a client dependability program viz. 'The Bata Club'

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has been presented at significant metro cities.During the period under survey Bata India went

into Long Term Agreements with a few Trade Unions.As commonly concurred bury alia

between Riverbank Developers Private Limited (RDPL) and Bata India vide New Development

Agreement dated 28 April 2010 read with Addendum Agreement dated 5 December 2013 Bata

India got approx. 136955 sq. ft. of developed space in the Integrated Township Project at

Batanagar West Bengal during the multi month time span finished 31 March 2015.Bata India

framed another completely possessed auxiliary viz. Way Finders Brands Limited on 26

December 2014. Bata India needed to defeat the surprising difficulties in execution of new

gracefully chain IT framework which prompted disturbance and postponement in flexibly of

footwear from the manufacturing plants and distribution centers to the retail locations during the

start of the money related year 2015-16 affecting the volume of footwear sold and furthermore

loss of piece of the overall industry. During the year under audit the organization took a few

restorative measures so as to conquer such difficulties remembering center for same store

development renewal of stock in retail locations dependent on store necessity/deals selling stock

level through different plans and furthermore cost decrease activities. Thus the organization

began enrolling volume development from the second from last quarter of the money related year

2015-16. In 2015-16 Bata India presented different new structures of footwear which are

contemporary a la mode and furthermore moderate. Modernization of the industrial facilities and

assembling procedures of the organization kept during the year under audit. During the year

under survey Bata India opened 26 new retail locations across India. The new stores are bigger in

size and depend on worldwide structure making them look total and luring with sufficient space

to show the items. The organization's online business developed well during the year under audit.

The organization sold more than 3.8 lacs sets of footwear through web based channels.During

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the year under audit Bata India's web based business division essentially centered around

expanding its client database by connecting with new arrangement of target crowd and

furthermore building up fruitful relationship with many presumed organizations and banks for

example HDFC Bank Standard Chartered Bank State Bank of India Deutsche Bank Samsung

SpiceJet Airlines and so forth. Such partnerships helped the organization increment its image

mindfulness and client database. The organization's items kept on being sold through its

accomplices' sites including Amazon Myntra Jabong Flipkart and so on.

The year 2015-16 was an achievement year for the organization's universal premium brand Hush

Puppies as the organization sold over a million sets of the brand in the year 2015 itself. During

the year under audit Hush Puppies set out on an excursion of re-situating itself as an International

Premium Lifestyle Casual Footwear brand.During the year under survey Bata India presented its

client reliability program viz. 'The Bata Club' in excess of 800 retail locations across 47 urban

areas in India. These Club individuals are conveyed on need about different new showcasing

offers and advancements as and when arranged by the organization. During the year under audit

Bata India fortified its urban discount business checking group and endeavors are being made to

build its piece of the overall industry in the discount footwear business. According to

endorsement of the investors got at the Eighty Second Annual General Meeting Bata India sub-

separated the assumed worth of its value portions of Rs. 10/ - each completely settled up into two

value portions of Rs. 5/ - each completely settled up. The organization had fixed 8 October 2015

as the Record Date to learn the qualified investors for accepting the aforementioned sub-isolated

22
value shares. During the year under survey Bata India genially settled its extended prosecutions

with Relaxo Footwear Limited identifying with 'SPARX' Trademark. Vital assent terms have

been recorded with the proper Trademarks Authorities and under the steady gaze of the Delhi

High Court. As commonly concurred bury alia between Riverbank Developers Private Limited

(RDPL) and Bata India vide New Development Agreement dated 28 April 2010 read with

Addendum Agreement dated 5 December 2013 Bata India claimed the staying 195075 sq. ft. of

built space in the Integrated Township Project at Batanagar West Bengal during the year under

survey. As needs be RDPL's commitment to handover 332030 sq. ft. of built space to Bata India

has been finished. During the year under survey Bata India went into long haul concurrences

with its Workers' Unions at its assembling units. During the year your organization effectively

haggled Long Term Settlements with the Workers' Union at Bataganj and with the Shop

Employees' Union.Bata India brought about capital use adding up to Rs.794.41 million out of

2015-16 when contrasted with Rs.1538.77 million during the multi month time span finished 31

March 2015.During the monetary year finished 31 March 2017 Bata India attempted to keep up

its height as the main footwear brand of decision with an additional concentration to tap the

design cognizant youth working ladies and kids through presentation of more current and

trendier styles of footwear and has likewise propelled premium assortments of footwear for

people. During the year under audit the organization opened 100 new retail locations and 23

diversified stores across India. These plausible new stores are situated in undiscovered and

creating markets of the Country and depend on worldwide plan making them look luring with

contemporary showcase of the items. The organization's online business enrolled great

development during the year under survey. The organization sold more than 6.3 lacs sets of

footwear through online channels during the year. The year 2016-17 saw different new activities

23
for Hush Puppies - the organization's global image known for comfort quality and style.

Propelling of new 'Mark Collection' over its selective stores denoting another convention of

contemporary and elegant shoes for the new more youthful age and so forth were the significant

features for the brand. During the year under survey Hush Puppies proceeded to firmly re-

position itself as an International Premium Lifestyle Casual Footwear brand. Bata India caused

capital conglomerating Rs.386.8 million out of 2016-17 when contrasted with Rs.488.1 million

(barring Rs.306.3 million by virtue of the receipt of built space under the recent joint endeavor

venture at Batanagar) during the earlier year finished 31 March 2016.During the year under

survey Bata India executed Long Term Agreements (LTAs) for settlements of contribution with

the Worker's Union at the assembling units of the organization at Southcan Bangalore and

BataShatak at Hosur Tamil Nadu. During the year under survey the organization effectively

executed a Voluntary Retirement Scheme (VRS) for laborers at its assembling unit at Faridabad

Haryana wherein all the 170 specialists acknowledged the VRS and tasks at Faridabad unit were

ended since December 2016.During the budgetary year finished 31 March 2018 Bata India

cautiously re-designed key touch focuses in the purchaser venture in this manner venturing up

the attention on Visual Merchandising through stunning store windows curating a shopping

helpful playlist for instore music invigorating the store style to feature various brands/includes

and utilizing prepared beauticians to all the more likely serve client at the organization's top

stores in Metro's and to be slowly reached out over all stores. With the end goal of bring back the

strut to Bata the organization propelled its universally created 'Red Angela Store Concept' in

Kolkata and Delhi. This idea is stylishly planned and offers mess free shopping experience

through product central focuses (in red and white) and oozes a top notch gaze that adds upward

to a 'goodness' feel. During the year under audit Bata India included more than 100 new retail

24
locations 31 establishment stores and revamped in excess of 90 stores across India. The

organization opened the first Bata Women Store in Quite a while in Bengaluru focussed on

obliging footwear and embellishments needs of lady buyers. During the year under audit the

organization's web based business division took a shot at chances to enhance brand reach in the

current online plans of action. The organization further kept on fortifying its online client

database by connecting with the main telecom carrier and banking major parts in relationship

with subsidiary accomplices. Different market development procedures were set up like

increment of brand nearness through commercial center model by posting items on high-traffic

creating sites including TataCliq ShopClues GoFynd and Limeroad. The organization's web

based business site www.bata.in moved to a safe AWS worker for improved execution that

incorporates highlights like auto scaling and flexible burden adjusting. The money related year

2017-18 saw different new activities for Hush Puppies - Bata India's worldwide image known for

comfort quality and style. Propelling of new 'Mark Collection' over its select stores denoting

another custom of contemporary and chic shoes for the new more youthful age and so on were

the significant features for the brand. Bata India caused capital use of Rs. 930.77 million of every

2017-18 when contrasted with Rs. 386.79 million in the earlier year. During the year under

survey the organization executed Long Term Agreement (LTA) for settlement of contribution

with the Worker's Union at the assembling units of the organization at Batanagar Kolkata.

25
Awards Received

• IMAGES Most Admired Footwear Brand of the year 2017, at the eighteenth

Annual IMAGES Fashion Awards.

• Featured among AFAQ's 2017 India's Buzziest Brands.

• DUN and BRADSTREET Corporate Award 2017.

• The Most Trusted Brand (Retail) - Brand Equity perceived Bata into the 'Top

Most Trusted Brands' in November 2013.

• Udyog Rattan Award - The Institute of Economics Studies respected Mr. Rajeev

Gopalakrishnan and the Company with the Certificate of Excellence and Gold Medal at

the 'Universal Global Meet' planned on the 23rd January 2014. The IES resolves to

improve the nation economy through its exercises by holding meetings and gathering

conversations on the issues of contemprary business and econmics interests.

• The Most Attractive Brand at the eleventh Position - Most alluring brand at the

eleventh position - 2013. The report India's most alluring brand is all inclusive, the

principal serious examination on Brand engaging quality. It is a complete rundown of

26
 most alluring brands dependent on 36 qualities of fascination remainder, discover a

review research firm TRA.

• Images Shoes and Accessories Forum Held at Mumbai - Bata India sacked the

honor for 'Most Admired Large Format Multi Brand Footwear Retailer of the Year' by

the Images Shoes and Accessories Forum - 2013

BOARD OF DIRECTORS OF BATA INDIA LIMITED (w.e.f. FEBRUARY

12, 2019)

1. Mr. Uday Khanna, Chairman and Independent Director

2. Mr. Ravindra Dhariwal, Independent Director

3. Mr. Akshay Chudasama, Independent Director

4. Mr. Ashok Kumar Barat, Independent Director

5. Ms. Anjali Bansal, Independent Director

6. Mr. Alberto Toni, Non-Executive Director

7. Mr. Shaibal Sinha, Non-Executive Director

8. Mr. Rajeev Gopalakrishnan, Managing Director

9. Mr. Sandeep Kataria, Whole-time Director and Chief Executive Officer

27
10. Mr. Ram Kumar Gupta, Director Finance and Chief Financial Officer

28
 About the Topic

Financial Analysis

Financial analysis is the process of evaluating businesses, projects, budgets and other finance-

related entities to determine their performance and suitability. Typically, financial analysis is

used to analyze whether an entity is stable, solvent, liquid or profitable enough to warrant a

monetary investment. When looking at a specific company, a financial analyst conducts analysis

by focusing on the income statement, balance sheet, and cash flow statement.

The basic limitation of financial statements comprising the balance sheet and income statement

do not give all the information related to financial operations and performance of a firm. In fact,

they are not sufficient for future financial planning and to find out the current performance of the

firm. Hence there should be a proper analysis of these financial statements which will aid in

financial analysis. The important figures and amounts in the financial statements and their

relationship is the main area being concentrated in financial analysis. Financial statement

analysis is a process involved in evaluating the relations that exist between component parts of

financial statements so that a firm's position and performance is better understood.

Financial analysis is the process of selection, relation and evaluation and interpretation.

29
Steps in money related examination:

1. Selecting the data pertinent to the choice viable from the complete data contained in the

fiscal summaries.

2. Arranging the data in a manner to feature critical connections.

3. Interpretation and reaching of deductions and determinations.

Criticalness of Financial Analysis

Account Manager

Investigation of fiscal summaries helps the account director in:

• Assessing the operational productivity and administrative adequacy of the organization.

• Analyzing the monetary qualities and shortcomings and financial soundness of the

organization.

• Analyzing the current situation of monetary examination,

30
• Assessing the kinds of benefits claimed by a business venture and the liabilities which are

because of the undertaking.

• Providing data about the money position organization is holding and how much

obligation the organization has comparable to value.

• Studying the sensibility of stock and account holders held by the organization.

Top Management

Monetary investigation helps the top administration

• To survey whether the assets of the firm are utilized in the most productive way

• Whether the monetary state of the firm is sound

31
• To decide the achievement of the organization's tasks

• Appraising the person's presentation

• evaluating the arrangement of inner control

• To examine the future possibilities of the venture.

Exchange Payables

Exchange payables break down of fiscal summaries for:

• Appraising the capacity of the organization to meet its transient commitments

• Judging the likelihood of company's proceeded with capacity to meet all its monetary

commitments later on.

32
• Firm's capacity to meet cases of loan bosses over an extremely brief timeframe.

• Evaluating the money related position and capacity to take care of the worries.

Moneylenders

Providers of long haul obligation are worried about the company's drawn out dissolvability and

endurance. They investigate the association's fiscal summaries

• To discover the benefit of the organization over some stretch of time,

• For deciding an organization's capacity to produce money, to pay premium and reimburse

the chief sum

• To survey the connection between different wellsprings of assets (for example capital

structure connections)

33
• To survey fiscal summaries which contain data on past exhibitions and decipher it as a

reason for guaging future paces of return and for evaluating hazard.

• For deciding credit chance, choosing the terms and states of an advance whenever endorsed,

loan cost, and development date and so forth.

Financial specialists

Financial specialists, who have put their cash in the association's offers, are keen on the association's

income and future productivity. Fiscal report investigation encourages them in anticipating the

liquidation and disappointment likelihood of business ventures. In the wake of monitoring the

plausible disappointment, speculators can take preventive measures to stay away from/limit

misfortunes.

Worker's guilds

Worker's guilds dissect the fiscal summaries:

34
• To survey whether a venture can build their compensation.

• To check whether an undertaking can build profitability or raise the costs of

items/administrations to retain a compensation increment.

Objectives of Financial Analysis

Let us take a gander at a portion of the fundamental goals of money related examination,

1. Reviewing the exhibition of an organization over the past periods: To anticipate the future

possibilities of the organization, past execution is examined. Past execution is broke down by

looking into the pattern of past deals, benefit, incomes, rate of profitability, obligation value

structure and working costs, and so on.

2. Assessing the current position and operational effectiveness: Examining the current benefit

and operational productivity of the endeavor with the goal that the money related soundness of the

organization can be resolved. For long haul dynamic, resources and liabilities of the organization are

35
checked on. Investigation helps in discovering the winning limit and working execution of the

organization.

3. Predicting development and gainfulness prospects: The top administration is worried about

future possibilities of the organization. Budgetary investigation encourages them in inspecting the

venture choices for making a decision about the winning capability of the undertaking. With the

assistance of budget report examination, appraisal and expectation of the chapter 11 and likelihood

of business disappointment should be possible.

4. Loan Decision by Financial Institutions and Banks: Financial investigation enables the

budgetary foundations, to advance organizations and banks to choose whether an advance can be

given to the organization or not. It causes them in deciding the credit hazard, choosing the terms and

states of an advance whenever authorized, loan fee, development date and so on.

36
Types of Financial Analysis

The most common types of financial analysis are:

1. Vertical

2. Horizontal

3. Leverage

4. Growth

5. Profitability

6. Liquidity

7. Efficiency

8. Cash Flow

9. Rates of Return

10. Valuation

11. Scenario & Sensitivity

12. Variance

37
Vertical Analysis

This kind of money related investigation includes taking a gander at different parts

of the salary explanation and partitioning them by income to communicate them as

a rate. For this activity to be best, the outcomes ought to be benchmarked against

different organizations in a similar industry to perceive how well the organization

is performing.

This procedure is likewise now and then called a typical estimated salary

articulation as it permits an examiner to think about organizations of various sizes

by assessing their edges rather than their dollars.

38
Horizontal Analysis

Even investigation includes taking quite a while of money related information and contrasting

them with one another to decide a development rate. This will enable an examiner to decide

whether an organization is developing or declining and distinguish significant patterns.

When building money related models, there will commonly be finally three years of authentic

monetary data and five years of guage data. This gives 8+ long periods of information to play out

39
an important pattern investigation, which can be benchmarked against different organizations in

a similar industry.

Leverage Analysis

Influence proportions are one of the most widely recognized techniques investigators use to

assess organization execution. A solitary monetary measurement, similar to add up to obligation,

may not be that adroit all alone so it's useful to contrast it with an organization's absolute value to

get a full image of the capital structure. The result is the debt/equity ratio.

Common examples of ratios include:

• Debt/equity

40
 • Debt/EBITDA

• EBIT/interest (interest coverage)

• Dupont analysis – a combination of ratios, often referred to as the pyramid of ratios,

including leverage and liquidity analysis

Growth Rates

Analyzing historical growth rates and projecting future ones are a big part of any financial

analyst’s job. Common examples of analyzing growth include:

• Year-over-year (YoY)

• Regression analysis

• Bottom-up analysis (starting with individual drivers of revenue in the business)

• Top-down analysis (starting with market size and market share)

41
 • Other forecasting methods

Profitability Analysis

Productivity is a kind of pay proclamation examination where an examiner evaluates how

appealing the financial matters of a business are. Normal instances of gainfulness measures

include:

• Gross margin

• EBITDA margin

• EBIT margin

42
 • Net profit margin

Liquidity Analysis

This is a kind of monetary investigation that centers around the accounting report, especially, an

organization's capacity to meet momentary commitments (those due in under a year). Normal

instances of liquidity examination include:

• Current ratio

43
 • Acid test

• Cash ratio

• Net working capital

Efficiency Analysis

Proficiency proportions are a basic piece of any vigorous monetary investigation. These

proportions see how well an organization deals with its advantages and uses them to produce

income and income.

Common efficiency ratios include:

44
 • Asset turnover ratio

• Fixed asset turnover ratio

• Cash conversion ratio

• Inventory turnover ratio

Cash Flow

As is commonly said in account, money is top dog, and, in this manner, a major accentuation is

put on an organization's capacity to produce income. Experts over a wide scope of money

professions invest a lot of energy seeing organizations' income profiles.

The Statement of Cash Flows is an extraordinary spot to begin, including taking a gander at

every one of the three primary segments: working exercises, contributing exercises, and

financing exercises.

45
Common examples of cash flow analysis include:

• Operating Cash Flow (OCF)

• Free Cash Flow (FCF)

• Free Cash Flow to the Firm (FCFF)

• Free Cash Flow to Equity (FCFE)

Rates of Return

46
Toward the day's end, speculators, moneylenders, and account experts, when all is said in done,

are centered around what kind of hazard balanced pace of profit they can acquire for their cash.

Thusly, surveying paces of quantifiable profit (ROI) is basic in the business.

Common examples of rates of return measures include:

• Return on Equity (ROE)

• Return on Assets (ROA)

• Return on invested capital (ROIC)

• Dividend Yield

• Capital Gain

• Accounting rate of return (ARR)

• Internal Rate of Return (IRR)

Valuation Analysis

47
The way toward evaluating what a business is worth is a significant segment of money related

investigation, and experts in the business invest a lot of energy building monetary models in

Excel. The estimation of a business can be surveyed from various perspectives, and investigators

need to utilize a blend of strategies to show up at a sensible estimation

Approaches to valuation include:

• Cost Approach

o The cost to build/replace

• Relative Value (market approach)

o Comparable company analysis

o Precedent transactions

• Intrinsic Value

o Discounted cash flow analysis

Scenario & Sensitivity Analysis

48
Another part of budgetary demonstrating and valuation is performing situation and affectability

investigation as a method of estimating hazard. Since the errand of building a model to esteem an

organization is an endeavor to foresee the future, it is characteristically unsure.

Building situations and performing affectability examination can help figure out what the most

pessimistic scenario or best-case future for an organization could resemble. Supervisors of

organizations working in money related arranging and examination (FP&A) will regularly set up

these situations to enable an organization to set up its spending plans and conjectures.

Venture examiners will take a gander at how touchy the estimation of an organization is as

changes in presumptions course through the model utilizing Goal Seek and Data Tables.

49
Variance Analysis

Variance analysis is the way toward contrasting genuine outcomes with a spending plan or

gauge. It is a significant piece of the inside arranging and planning process at a working

organization, especially for experts working in the bookkeeping and fund offices.

The procedure ordinarily includes taking a gander at whether a fluctuation was positive or

horrible and afterward separating it to figure out what its underlying driver was. For instance, an

organization had a spending plan of $2.5 million of income and had genuine consequences of

$2.6 million. This outcomes in a $0.1 million positive change, which was because of higher than

anticipated volumes (instead of more significant expenses).

50
Ratio Analysis

Ratio analysis is the correlation of details in the budget summaries of a business. Proportion

investigation is utilized to assess various issues with an element, for example, its liquidity,

proficiency of activities, and gainfulness. This sort of investigation is especially valuable to

examiners outside of a business, since their essential wellspring of data about an association

is its budget reports. Proportion investigation is less helpful to corporate insiders, who have

better access to more nitty gritty operational data about the association. Proportion

examination is especially helpful when utilized in the accompanying two different ways:

51
• Trend line. Calculate each ratio over a large number of reporting periods, to see if there is a

trend in the calculated information. The trend can indicate financial difficulties that would

not otherwise be apparent if ratios were being examined for a single period. Trend lines can

also be used to estimate the direction of future ratio performance.

• Industry comparison. Ascertain similar proportions for rivals in a similar industry, and look

at the outcomes over the entirety of the organizations explored. Since these organizations

likely work with comparable fixed resource speculations and have comparable capital

structures, the consequences of a proportion investigation ought to be comparative. On the

off chance that this isn't the situation, it can show an expected issue, or the converse - the

capacity of a business to create a benefit that is prominently higher than the remainder of

the business. The business examination approach is utilized for division investigation, to

figure out which organizations inside an industry are the most (and least) important.

There are several hundred possible ratios that can be used for analysis purposes, but only a

small core group is typically used to gain an understanding of an entity.

These ratios include:

• Current ratio. Compares current assets to current liabilities, to see if a business has enough

cash to pay its immediate liabilities.

• Days sales outstanding. Determines the ability of a business to effectively issue credit to

customers and be paid back on a timely basis.

• Debt to equity ratio. Compares the proportion of debt to equity, to see if a business has

taken on too much debt.

52
• Dividend payout ratio. This is the percentage of earnings paid to investors in the form of

dividends. If the percentage is low, it is an indicator that there is room for dividend

payments to increase substantially.

• Gross profit ratio. Calculates the proportion of earnings generated by the sale of goods or

services, before administrative expenses are included. A decline in this percentage could

signal pricing pressure on a company's core operations.

• Inventory turnover. Calculates the time it takes to sell off inventory. A low turnover figure

indicates that a business has an excessive investment in inventory, and therefore is at risk of

having obsolete inventory.

• Net profit ratio. Calculates the proportion of net profit to sales; a low proportion can

indicate a bloated cost structure or pricing pressure.

• Price earnings ratio. Compares the price paid for a company's shares to the earnings

reported by the business. An excessively high ratio signals that there is no basis for a high

stock price, which could presage a stock price decline.

• Return on assets. Calculates the ability of management to efficiently use assets to generate

profits. A low return indicates a bloated investment in assets.

Advantages of Ratio Analysis:

Financial ratios are essentially concerned with the identification of significant accounting data

relationships, which give the decision-maker insights into the financial performance of a

company. The advantages of ratio analysis can be summarized as follows:

Ratios facilitate conducting trend analysis, which is important for decision making and

forecasting.

53
 Ratio analysis helps in the assessment of the liquidity, operating efficiency, profitability and

solvency of a firm.

Ratio analysis provides a basis for both intra-firm as well as inter-firm comparisons.

The comparison of actual ratios with base year ratios or standard ratios helps the management

analyze the financial performance of the firm.

Limitations of Ratio Analysis:

Ratio analysis has its limitations. These limitations are described below:

1] Information problems

Ratios require quantitative information for analysis but it is not decisive about analytical

output.

The figures in a set of accounts are likely to be at least several months out of date, and so

might not give a proper indication of the company’s current financial position.

Where historical cost convention is used, asset valuations in the balance sheet could be

misleading. Ratios based on this information will not be very useful for decision-making.

2] Comparison of performance over time

➢ When looking at execution after some time, there is expected to think about the adjustments in
cost. The development in execution ought to be in accordance with the adjustments in cost.

➢ When contrasting execution after some time, there is expected to think about the adjustments
in innovation.

The development in execution ought to be in accordance with the adjustments in innovation.

54
➢ Changes in bookkeeping strategy may influence the examination of results between various
bookkeeping years as misdirecting.

3] Inter-firm comparison

Companies may have different capital structures and to make comparison of performance

when one is all equity financed and another is a geared company it may not be a good analysis.

Selective application of government incentives to various companies may also distort

intercompany comparison. Comparing the performance of two enterprises may be misleading.

Inter-firm comparison may not be useful unless the firms compared are of the same size and

age, and employ similar production methods and accounting practices.

Even within a company, comparisons can be distorted by changes in the price level.

Ratios provide only quantitative information, not qualitative information.

➢ Ratios are calculated on the basis of past financial statements. They do not indicate future

trends and they do not consider economic conditions.

55
 Research Methodology

Research Methodology portrays how the exploration study was attempted. This incorporates the
details of a wellspring of information, research structure and strategy for information assortment,
the examining technique and the devices utilized. Exploration Methodology is the best approach
to discover the consequence of a given issue on explicit issue or issue that is likewise alluded as
examination issue. In strategy, specialist utilizes various measures for unraveling/looking
through the given exploration issue. Various sources are distinctive kind of techniques for taking
care of the issue.

The structure of any exploration venture requires significant consideration regarding the
examination strategies and the proposed information investigation. Inside this area, we have
endeavored to give some data about how to deliver an examination plan for the investigation.

The procedure used to gather data and information to settle on business choices. The approach
may incorporate distribution research, meetings, reviews and other exploration methods, and
could incorporate both present and authentic data.

The logical strategy—i.e., the technique utilized in papers—is based, to some extent, on the
capacity of others to reproduce your examination. In particular, so as to steadfastly reproduce
your examination, different analysts must know the Who, What, Where, When, and How of your
investigation. While there are nuanced contrasts in the subtleties among subjective and
quantitative examinations, the techniques to both are comparative. So, a philosophy gives a
diagram to different analysts to follow, permitting them to lead their own examination while
utilizing your technique to show up at comparative discoveries.

56
Characteristics of Research

The specific characteristics of research are-

• Research is profoundly purposive. It manages a huge issue which requests an answer.

• Research is master methodical and precise examination. The scientist attempts to make sure
about an ability before embraced any examination. Specialist designs the investigated with
as complete precision as could reasonably be expected. He utilizes normalized and
substantial information gathering apparatuses or instruments as he can discover or gadget.
He additionally utilizes mechanical intends to enhance the precision of human perception,
recording and calculation of information.

• Research must have the option to control all the factors. This requires randomization at all
stages, in choosing the subjects, the model size and the test medicines. This will guarantee a
sufficient authority over the free factor.

• Research accumulates new information on information from essential or firsthand sources.

Descriptive Research:

Descriptive research is characterized as an examination technique that portrays the attributes of

the populace or wonder that is being considered. This approach concentrates more on the "what"
of the examination subject instead of the "why" of the exploration subject.

At the end of the day, elucidating research fundamentally centers around depicting the idea of a
segment fragment, without concentrating on "why" a specific wonder happens. At the end of the
day, it "depicts" the subject of the examination, without covering "why" it occurs.

57
 For instance, a clothing brand that needs to comprehend the style buying patterns among New
York purchasers will lead a segment review of this locale, accumulate populace information and
afterward direct spellbinding examination on this segment portion. The examination will at that
point reveal subtleties on "what is the buying example of New York purchasers", yet not spread
any analytical subtleties on "why" the examples exits .Because for the attire brand attempting to
break into this market, understanding the idea of their market is the goal of the investigation.

Some unmistakable attributes of expressive examination are:

1. Quantitative research: Descriptive research is a quantitative examination strategy that

endeavors to gather quantifiable data to be utilized for factual investigation of the populace test.
It is a famous statistical surveying apparatus that permits to gather and portray the idea of the
segment section.
2. Uncontrolled variables: In expressive exploration, none of the factors are impacted in any
capacity. This uses observational techniques to lead the examination. Subsequently, the idea of
the factors or their conduct isn't in the possession of the analyst.
3. Cross-sectional studies: Descriptive research is generally a cross-sectional study where
different sections belonging to the same group are studied.
4. Basis for further research: In expressive exploration, none of the factors are impacted in any
capacity. This uses observational techniques to lead the examination. Subsequently, the idea of
the factors or their conduct isn't in the possession of the analyst.

Secondary Data

Auxiliary information is research information that has recently been assembled and can be gotten
to by specialists. The term appears differently in relation to essential information, which is
information gathered legitimately from its source.

58
Optional information alludes to information which is gathered by somebody who is somebody
other than the client. Basic wellsprings of auxiliary information for sociology incorporate
censuses, data gathered by government offices, hierarchical records and information that was
initially gathered for other exploration purposes. Essential information, on the other hand, are
gathered by the examiner leading the examination.

The sources of secondary data include:

• Books
• Magazines
• Company’s reports and Websites

Objectives of the Research Project Report

Primary objective:

The objective of financial statement is to know information about the financial position,

performance & cash flows of an enterprise with the help of analytical tools.

Secondary objectives:

Based on this information, objective of analyzing them is to evaluate:

59
1) The sufficiency of the benefits earned by the organization

2) The sufficiency of its monetary quality

3) Its capacity to create enough money and money counterparts, timing and surely of their

Generation.

4) The future development viewpoint of the organization.

5) To know the money related execution assessment of Bata India

6) To give recommendation based on Liquidity, Profitability, Efficiency and Leverage

examination

7) To discover the overall example of a connection between related elements or factors utilizing

income articulation.

60
 Data Analysis and Data Interpretation

1) Profitability ratio

Year 2009 2010 2011 2012 2013 2015

Ratio 6.15% 7.57% 14.64% 9.31% 9.23% 8.58%

It tells about the percentage of profit earn by the firm in any accounting period.

61
 2) Assets Turnover Ratio

Year 2009 2010 2011 2012 2013 2015

Ratio 3.51 1.76 1.71 1.793 1.643 1.783
(times)

It measures the efficiency of a company’s use of its assets in generating sales revenue or sales
income to the company.

62
 3) Return on Assets

Year 2009 2010 2011 2012 2013 2015

Ratio 21.64 13.37 25.14 16.70 15.17 15.30
(%)

It shows the percentage of how profitable a company’s assets are in generating revenues.

63
 4) Return on Equity

Year 2009 2010 2011 2012 2013 2015

Ratio 22.87 26.03 46.44 29.92 24.75 24.81

(%)

It measures the efficiency of a firm at generating profits from each unit of shareholder equity.

64
5) Earning per Share

Year 2009 2010 2011 2012 2013 2015

Ratio (per 10.46 14.84 35.14 26.7 29.68 35.97
share)

The Earning per Share ratio measures the amount of a company’s net income that
is theoretically available for payment to the holders in its common stock.

65
 6) Current Ratio

Year 2009 2010 2011 2012 2013 2015

Ratio 2.28:1 1.94:1 2.77:1 2.45:1 2.46:1 2.29:1

It is an indication of a firm’s market liquidity and ability to meet creditor’s demands.

Its ideal value should be between 1.5 to 2.

66
 7) Quick Ratio

Year 2009 2010 2011 2012 2013 2015

Ratio 0.85:1 0.98:1 1.26:1 0.88:1 0.9:1 0.69:1

It measures the ability of a company to use it near cash or quick assets to extinguish or
retire its current liabilities.
It should be 1:1 or higher, the higher the ratio, the greater the company’s liquidity.

67
8) Debtor Turnover Ratio

Year 2009 2010 2011 2012 2013 2015

Ratio 42.75% 45.43 50.07 48.26 43.05 49.27

It used to measure how effective a company is in extending credit as well as

collecting debts.

68
9) Average Debt Collection

Year 2009 2010 2011 2012 2013 2015

Ratio 8.42 7.92 7.18 7.45 8.36 7.30

(Days)

It tells the average time taken to collect trade debts.

69
 10) Inventory Turnover Ratio

Year 2009 2010 2011 2012 2013 2015

Ratio 3.5 3.91 3.92 3.79 3.49 3.77

It measure for evaluating just how efficient management is at managing company

inventory and generating sales from it.

70
 11) Average Inventory Holding Period

Year 2009 2010 2011 2012 2013 2015

Ratio 102.85 92.07 91.83 94.98 103.15 95.49

A ratio showing how many times a company’s inventory is sold and replaced over a
period.

71
12) Debt Equity Ratio

Year 2009 2010 2011 2012 2013 2015

Ratio 0.07 0.03 0.033 0 0 0

It used to measure a company’s financial leverage.

It also indicates how much debts company is using to finance its assets.
Its optimal value is 1 but it differs from industry to industry.

72
13) Liability Equity Ratio

All Liability = Total Liability – Shareholder’s Equity

Year 2009 2010 2011 2012 2013 2015

Ratio 0.84:1 1.03:1 0.71:1 0.61:1 0.64:1 0.6:1

It is the ratio between liability of a business towards outsiders and towards

owners.

73
14) Interest Coverage Ratio

Year 2009 2010 2011 2012 2013 2015

Ratio 11.33 19.72 34.11 245.15 218.57 188.16

(times)

It measure of a company’s ability to meet its interest payments. It determines how

easily a company can pay interest expenses on outstanding debt.

15) Price Earning Ratio

74
Year 2009 2010 2011 2012 2013 2015

Ratio 19 24.529 15.15 32.59 35.54 30.62

PE ratio shows current investor demand for a company share.

75
16) Dividend Yield Ratio

Year 2009 2010 2011 2012 2013 2015

Ratio 1.50 1.09 1.12 0.68 0.61 0.59

(%)

It is a way to measure how much cash flow you are getting for each dollar
invested in an equity position.

76
17) PRICE TO BOOK RATIO

Year 2009 2010 2011 2012 2013 2015

Ratio 3.82 5.87 5.95 7.98 8.06 6.92

Times It used to compare a stock's market value to its book value. It is calculated
by dividing the current closing price of the stock by the latest book value per
share.
A lower value of this ratio mean the stock is undervalued.

77
Cash Flow Statement of Bata India

78
Findings

1. In terms of gainfulness, Bata's overall revenue has expanded

practically 9.25% over the time of 2009-2015. The edge radically by
practically 8.49% in 3 years followed by a diminishing in the net revenue by
practically 6.06% throughout the following 3 years making the 2011 the
most gainful year.

2. The effectiveness of Bata as far as the utilization of its advantages for

produce deals income has diminished by practically 1.867%

3. The profit per portion of Bata has expanded by practically 25.51%

over the time of six years extending from 2009-2015 which suggests that
Bata's total compensation is expanding at a consistent rate.

4. Over the time of six years, Bata's market liquidity and it's capacity to
satisfy bank's need has met the perfect proportion of 1.5:1 suggesting that it
has enough to for the two its activity and to pay its loan bosses

5. Bata just surpasses the perfect speedy proportion of 1:1 in the year
2011 with other year following behind by roughly 30% (0.3).

6. The normal account holder turnover proportion is 46.47% which

infers that Bata is very effective

in expanding its acknowledge just as gathering its obligations.

7. Inventory turnover gives a knowledge concerning whether an

organization is dealing with its stock appropriately which according to the
proportion over the multi year practically fixed with the greatest vacillation
of 0.42

8. Since obligation to value proportion is lower by and large more like

zero, this implies Bata hasn't depended on obtaining to back its tasks.

79
 9. The financial specialists interest for Bata's offers has been fluctuating
over the time of six years with the limit of 35.54 to at least 15.15 .

10. The lower the PBV proportion, the better the worth which suggests that the
PBV esteem is at its best in 2009 and even under the least favorable conditions in
2013.

80
Limitations

1) As information give to us, has been taken from the optional source, it isn't sure that gathered
information is totally exact.

2) Companywide factors.— just utilization of numerical or bookkeeping data [avoid best human
asset, mechanization underway such a non-account factors are ignored.]

3) Study dependent on chronicled information and records.

4) Fail to show what the substance's typical or benchmark position is

5) Be vigorously impacted by the decision of the base financial period

6) Cash stream articulation depends on money premise of bookkeeping; it overlooks the essential
bookkeeping idea of gathering premise.

81
BIBLIOGRAPHY

1) www.moneycontrol.com

2) www.bata.in

3) www.investopedia.com

4) www.wikipedia.com

5) I.M. Pandey ‘FINANCIAL MANAGEMENT’ Published by Vikas publishing

house 2009.

6) www.google.com

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