Académique Documents
Professionnel Documents
Culture Documents
ON
TOPIC
• Background, history, management of BATA company
• Liquidity position
• Track and report news relevant to company chronologically and its impact on share price of
the company
• Bibliography
INDUSTRY OVERVIEW
The leather Industry in India occupies a place of prominence in the Indian economy, in view of
its massive potential for employment, growth and exports. India’s abundance of raw materials
(10% of the world raw material) in terms of raw skins and hides and its comparatively low
tanning costs makes it the second among the footwear producing countries next to China.
However, India produces more of gents footwear, while the world’s major production is in ladies
footwear.
Brief History
The Company was originally incorporated as Bata Shoe Company Limited on December 23,
1931 under Indian Companies Act, 1913 for the purpose of manufacturing and marketing of all
types of footwear, footwear components, leather and products allied to the footwear trade.
Subsequently, the Company changed its name to .Bata Shoe Company Private Limited. on April
6, 1956 upon conversion into private company. The Company changed its name from .Bata Shoe
Company Private Limited. To Bata Shoe Company Limited., upon conversion to a public
company on April 18, 1973. The name was once again changed to the current name, i.e. Bata
India Limited, on April 23, 1973.
The Company was promoted by Leader A.G., St. Moritz, Switzerland, a member of the
multinational Bata Shoe Organisation (BSO) with a 100% Equity Shareholding, and
consequently, the Company too is a member of the BSO. The BSO consists of independently run
companies operating in several countries across the world. Bata Limited, Toronto, Canada acts as
the headquarters of BSO. Bata Shoe Organization provides an important interchange of new
manufacturing technologies, machine design, factory lay-out plans advertising market forecasts,
fashion trends, modern marketing techniques, new material testing and also information on the
most advanced machinery and technology for production of shoes are made available to the Bata
group of companies, including Bata India Limited. On April 23, 1973, the name was changed to
Bata India Limited. On June 25, 1973, the Company made its first public issue of shares.
• Key Milestones
Date/Year Event
1894- The Bata Shoe Organization was founded by Tomas J. Bata, a ninth
generation shoe maker
1931- The Company was incorporated in India.
1933- The production of footwear commenced in a rented premises at Konnagar, a few miles
away from Kolkata, where for the first time rubber and canvas shoes were manufactured in India.
October 28,1934- The foundation stone was laid on land purchased from the Port
Commissioners and small landowners in the outskirts of Kolkata and the first manufacturing unit
was set up, at a place now known at Batanagar. The factory shifted from Konnagar to Batanagar.
1936- The construction work at the Batanagar factory was completed, and factory operation
shifted from Konnagar to Batanagar. Towards the end of 1936, the factory produced leather
footwear for the first time.
1937- Batanagar tannery became operational towards the end of 1937
1939- The Batanagar factory was complete in terms of every activity related to footwear. The
Batanagar township grew to become self-sufficient with the acquisition of more land and the
erection of schools, places of worship, hospitals, entertainment and recreational centres.
1940 . 45- During the World War II the factory’s production was geared to meet war
requirements.
1942- A footwear manufacture plant, a machinery department was set up at Batanagar, which
produced the first India-made major shoe machine. Simultaneously, several auxiliary
departments were started. This was followed by the setting up of the factory at Bataganj, Bihar.
1950- Bata successfully launched the brand .Hawai..
1951- The rubber/canvas factory was set-up at Faridabad, Haryana.
1952- One of Asia’s largest tanneries was set-up at Mokemehghat, Bihar.
1988- The Bata factory was set-up in Peenya, Bangalore.
1994- The Company’s factory at Hosur in the State of Tamil Nadu became operational, which
was originally an Export Oriented Unit, but now caters to the domestic Indian market
1993- Batanagar factory became the first Indian shoe-manufacturing unit to receive the ISO 9001
certification.
• Achievement
Awards - 2009-10
Awards - 2009
Bata India awarded the prestigious Images award 2009
Bata India, the leading footwear retailer in the country was awarded the
Images award for the Most Admired Retailer of the Year – Fashion &
Lifestyle. This was announced at the India Retail Forum in Mumbai, where
the top retail companies in India converged.
Awards - 2008
Amity Corporate Excellence
Bata India has been awarded the AMITY CORPORATE EXCELLENCE
AWARD on 21st February 2008. This award has been given for Bata's
excellent performance and retail growth during the past year.
Awards – 2007
Super Brands Award
It is awarded to the 1st top ten Super brands of India. Super brand signifies
the recognition that the consumer is giving to the Brand Image, Brand
Value and Brand Delivery. The award ceremony was held in Mumbai
on 12th April 2007
Awards - 2006
S Sinha Director
N Sankar Director
J Carbajal Director
Jack G N Clemons Director
Name Designation
V Narayanan Director
Uday Khanna Director
M K Sharma Director
George Nigel John Clemons Director
Analysis of data reveals that there is very high fluctuation in the share price of BATA Company
over the period of one year. In dec 18 it was at Rs.80 and march 28 it was down to Rs.60 then
afterwards it start increase and reach to Rs.150 and stable for one month till from june to
t july.
In may 2010 share price was Rs.275 per share. Overall it is clear from the trend analysis that
market price of company share increasing continuously. It is showing positive trend of company.
Capital Structure For Last 3 Years
Capital Structure
Period Instrument Auth Issued Capital -PAIDUP-
orized
Capital
From To (Rs. (Rs. cr) Shares Face Capital
cr) (nos) Value
642637
2008 2008 Equity Share 70 64.29 10 64.26
70
642637
2007 2007 Equity Share 70 64.29 10 64.26
70
642637
2006 2006 Equity Share 70 64.29 10 64.26
70
642637
2005 2005 Equity Share 70 64.29 10 64.26
70
This is a capital structure of a BATA Company which is showing that company has not used any
portion of debt in his capital structure and company has not make any change in his capital
structure. It is using only equity because if it use debt then it will be like a fixed liability and
company has to interest to debenture holders whether it earn profit or not.
Dec
Dec 05 Dec 06 Dec 08
07
Dec 04
Current Ratio
0.98 1.25 1.28 1.38
1.28
Quick Ratio 0.50 0.53 0.41 0.46 0.53
Debt Equity Ratio 1.24 0.43 0.26 0.24 0.18
Long Term Debt Equity
0.52 0.13 0.03 0.03 0.03
Ratio
If I talk regarding liquidity position about a company then it can be judged from the liquidity and
solvency ratio of a company that company’s current ratio is 0.98 in dec 04 and then it increased
to 1.38 in dec 08 which is showing that company current ratio is near to its rule of thumb 1:1
Quick ratio of company is also very good because its rule of thumb is .50:1 and company quick
ratio is .50 in 2004 and .53 in 2008 which is showing a good sign of progress.
In case of debt equity ratio of company there is no particular rule of thumb but company
company has reduced its debt part in his total capital. In Dec 04 debt equity ratio was 1.24 which
has decreased in Dec 08 to 0.18. Reason for this is mention in the capital structure of company
part.
Dec
Dec '05 Dec '06 Dec '07 Dec '08
'04
12
12 mths 12 mths 12 mths 12 mths
mths
Sources Of Funds
51.
Total Share Capital 64.26 64.26 64.26 64.26
42
51.
Equity Share Capital 64.26 64.26 64.26 64.26
42
0.0
Share Application Money 0.00 0.00 0.00 0.00
0
0.0
Preference Share Capital 0.00 0.00 0.00 0.00
0
48.
Reserves 114.69 119.22 147.23 189.17
56
84.
Revaluation Reserves 82.52 28.52 39.89 37.72
18
184
Networth 261.47 212.00 251.38 291.15
.16
112
Secured Loans 59.37 48.06 45.07 35.91
.16
12.
Unsecured Loans 17.17 0.27 6.73 8.72
19
124
Total Debt 76.54 48.33 51.80 44.63
.35
Total Liabilities 308 338.01 260.33 303.18 335.78
.51
Dec
Dec '05 Dec '06 Dec '07 Dec '08
'04
12
12 mths 12 mths 12 mths 12 mths
mths
Application Of Funds
358
Gross Block 363.26 306.58 324.52 349.34
.01
219
Less: Accum. Depreciation 231.81 227.17 220.60 232.31
.75
138
Net Block 131.45 79.41 103.92 117.03
.26
1.3
Capital Work in Progress 0.47 0.84 0.31 0.86
9
4.8
Investments 4.98 17.24 17.25 17.25
5
262
Inventories 278.76 276.36 303.74 292.23
.16
48.
Sundry Debtors 27.94 21.61 22.86 25.89
04
13.
Cash and Bank Balance 7.03 4.16 13.81 8.80
04
323
Total Current Assets 313.73 302.13 340.41 326.92
.24
61.
Loans and Advances 61.25 43.43 53.24 96.75
21
1.6
Fixed Deposits 13.33 10.14 18.91 17.96
2
386
Total CA, Loans & Advances 388.31 355.70 412.56 441.63
.07
0.0
Deffered Credit 0.00 0.00 0.00 0.00
0
217
Current Liabilities 168.97 177.71 198.40 194.36
.03
31.
Provisions 36.31 15.17 33.65 54.26
12
248
Total CL & Provisions 205.28 192.88 232.05 248.62
.15
137
Net Current Assets 183.03 162.82 180.51 193.01
.92
26.
Miscellaneous Expenses 18.08 0.00 1.20 7.65
11
308
Total Assets 338.01 260.31 303.19 335.80
.53
111
Contingent Liabilities 127.49 127.35 82.07 54.62
.36
19.
Book Value (Rs) 27.85 28.55 32.91 39.44
44
12
12 mths 12 mths 12 mths 12 mths
mths
Income
72
Sales Turnover 734.62 795.38 891.34 1,012.82
6.34
30.
Excise Duty 27.49 24.45 23.58 22.86
51
69
Net Sales 707.13 770.93 867.76 989.96
5.83
-
Other Income 12.20 14.68 12.45 1.63
28.81
-
Stock Adjustments 18.78 1.56 29.28 -10.69
12.95
65
Total Income 738.11 787.17 909.49 980.90
4.07
Expenditure
38
Raw Materials 375.32 370.96 441.63 458.74
3.36
22.
Power & Fuel Cost 22.65 24.03 25.74 28.22
49
18
Employee Cost 180.75 184.86 184.06 173.22
5.01
6.3
Other Manufacturing Expenses 3.71 24.82 20.96 21.46
7
87.
Selling and Admin Expenses 110.78 107.92 137.55 170.98
60
8.4
Miscellaneous Expenses 8.10 2.53 14.85 24.17
2
0.0
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00
0
69
Total Expenses 701.31 715.12 824.79 876.79
3.25
De
Dec '05 Dec '06 Dec '07 Dec '08
c '04
12
12 mths 12 mths 12 mths 12 mths
mths
-
Operating Profit 24.60 57.37 72.25 102.48
10.37
-
PBDIT 36.80 72.05 84.70 104.11
39.18
11.
Interest 12.23 10.57 13.54 17.30
94
-
PBDT 24.57 61.48 71.16 86.81
51.12
12.
Depreciation 11.91 13.62 15.92 18.91
33
0.0
Other Written Off 0.09 0.01 0.09 0.09
9
-
Profit Before Tax 12.57 47.85 55.15 67.81
63.54
0.7
Extra-ordinary items 1.03 0.52 -3.64 4.03
9
-
PBT (Post Extra-ord Items) 13.60 48.37 51.51 71.84
62.75
0.0
Tax 1.10 8.21 4.06 11.10
0
-
Reported Net Profit 12.49 40.15 47.44 60.74
62.75
30
Total Value Addition 325.99 344.17 383.16 418.05
9.88
Preference Dividend 0.0 0.00 0.00 0.00 0.00
0
0.0
Equity Dividend 0.00 0.00 12.85 16.07
0
0.0
Corporate Dividend Tax 0.00 0.00 2.18 2.73
0
Per share data (annualised)
51
Shares in issue (lakhs) 642.64 642.64 642.64 642.64
4.22
-
Earning Per Share (Rs) 1.94 6.25 7.38 9.45
12.20
0.0
Equity Dividend (%) 0.00 0.00 20.00 25.00
0
19.
Book Value (Rs) 27.85 28.55 32.91 39.44
44
Financial creditability of company is very strong. This thing is clear from the BALANCE
SHEET and PROFIT AND LOSS of the company, which is showing that company’s profit is
increasing year by year and for this company has reduced its operating and non operating
expensed both in his profit and loss account.
Second thing in the balance sheet of a company net worth of company has increased and as a
opposite of this its total debt is decreased. Which states that company want to dependant only on
its owners not on outsiders
• ICRA credit rating company upgraded the long term rating for bank facilities of Bata
India Limited, reaffirms short term rating
http://www.bataindia.com/corporate.htm
http://www.moneycontrol.com/india/stockpricequote/leatherproducts/bataindia/BI01
http://www.moneycontrol.com/financials/bataindia/balance-sheet/BI01
http://www.moneycontrol.com/annual-report/bataindia/directors-report/BI01
http://www.moneycontrol.com/company-article/bataindia/news/BI01
http://www.moneycontrol.com/company-facts/Bata/management/BI01
http://www.moneycontrol.com/company-facts/bataindia/history/BI01
http://www.moneycontrol.com/company-facts/bataindia/background/BI01
http://www.moneycontrol.com/company-facts/bataindia/dividend/BI01
http://www.moneycontrol.com/company-facts/bataindia/rights/BI01
http://www.bata.in/page.php?kon=2_0
http:// www.sebi.gov.in/dp/bata.pdf
http:// money.rediff.com/companies/bata-india/16510001