PART A

1. Industry Overview

As per the present Indian footwear industry report, the generation of footwear is over 22 billion
pairs every year, in other words of the aggregate of 9.6% worldwide footwear yield every year.
The Indian footwear industry has more than 1.1 million specialists, which makes it as a nation
with best business sources. The way that India remains as the world's second biggest footwear
producer and consumer after China and the USA, around 90% of the footwear utilization in
India are by the domestic market and the others are exported.

The Indian footwear market as of now ruled by the men's footwear which contributes roughly
around 58% of the aggregate to the total footwear market in India and is additionally expected
to develop at a Compound annual growth rate (CAGR) of 10% by 2020. The ladies' footwear,
is in any case, anticipated that would develop at a CAGR of 20%. As far as the kind of the item,
casual footwear or easygoing footwear is the biggest item portion in Indian footwear market
that contributes roughly around 67% of the aggregate footwear market. Besides, Non- leather
footwear represents 56% of the general footwear retail market in India. While the footwear
business is currently controlled by the SMEs, yet with the adjustment in buyer conduct and
present-day way of life, the items which are made by those medium and substantial brands are
probably going to observe a greater deal sooner rather than later. The significant footwear
delivering states in India are: Tamil Nadu, New Delhi, Uttar Pradesh, Punjab, Haryana,
Maharashtra, West Bengal, Rajasthan, and Kerala.

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1.1 Nature and growth
India stands as the 2nd foremost footwear manufacturer in the whole world, through creation of
footwear around 9% of the worldwide production every year, as linked to China, 22 billion
pairs, which manufactures around 60% of the worldwide manufacture.

With 2.1 billon pairs of footwear manufactures in India yearly of which 90% of the
consumption happens internally while remaining are exported to other countries like UK, USA,
France, Germany and Italy as per the market analysis.

The Indian exporters of Footwear has increased at a compound annual growth rate of 20% in
terms of INR in the past 5 years supported by increasing demand from the European nations
and the growing emphasis on importing countries to change sources from China to other
low-cost manufacturing countries.

1.2 Influencing economic factors

The following are the four factors that could impacts the producers of footwear:

Weather and Goods in stock: Weather is an element that cannot be disregarded. In a

few parts of the nation, winters is a long lasting which creates the icy temperature that people
have come to love-hate. Footwear manufacturing organizations are presently working on
various special stocks for occasions and have relied on remarkable marking down and limited
time exercises to dispose of it.

Foreign Exchange Pressure: Almost every organization with a worldwide nearness need
to deal with the impacts of a verifiable solid U.S. dollar. Supporting and value concessions
have been executed to help defeat those difficulties. Further, the greenback's

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quality has brought down tourism traffics in business sectors, taking an additional toll on
companies like Macys and, Decker’s Brands Ugg label.

Change in consumer buying behavior: During the ends of the week and festive
seasons, the move from physical spending to web-based shopping was discernible. A study
showed its result that customer who shop can increase up to 70% in the coming years.

It’s just not the buyers who are changing their place of shopping and the way they shop for
footwear, their preference in what consumers buy has also changed drastically. In recent times,
"Experiences", for example, dining, travel to historical centers, plays and social exercises are
getting a bigger piece of purchasers. Footwear companies should make more sense of how to
deal with the advancing their customers scene.

Fluctuations in price of oil, Unemployment rate, Increased Wages: As per a

report published by Cowen and Co. consumers team suggests that we still cannot seem to
look at the effects of increase in least wages on shopper. In 2015, the nation's biggest private
business, Walmart Stores, raised its lowest pay permitted by law and different organizations
have been feeling the strain to pursue the equivalent.

1.3 Competitors analysis

Major players like Nike, Reebok, and Puma on one hand and a large number of SMEs in the
unorganized sector part on the other are overpowering the business. The business will
experience a considerable measure of perceptions, in which exceedingly specific segments
where execution is the primary main thrust – like running shoes, football shoes, strolling shoes,
ball shoes, and soccer shoes. Though for few of them, their need lies in the exceedingly
moulded and popular shoes. Along these lines, we can state that this industry is in an
exceptionally innovative stage where the execution and design have joined to make a radical
new section, called lifestyle segment.
The competition is nearly non-cost for a portion of the entrenched players like Nike and Adidas.
They centre for the most part around the mind share of the clients and their innovative

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advertising efforts, how they pick their brand ambassadors, and their branding strategies, spell
achievement. Clients adhere to their image once they encounter the item and are completely
happy with it, which tells that the client's value affect-ability is less for the item which is
because of rich lifestyle, prosperity and increase in the obtaining influence of the purchasers.
Nike and Adidas are the two great players in the market.

1.4 Market share

Footwear exporters from India have seen growth in the previous years. The expansion in Indian
design and way of living life advertise has offered ascend to the footwear organizations from a
basic need, it has turned to an increase in designs and lifestyle segment.
As per the “India Retail Report”, India's cumulative marketing is worth if INR 3,893,425 crore,
increasing at a rate of 18% and is relied upon to go up to INR 6,156,333 crore. Currently it is
evaluated at the rate of 42% of its market and it is required to increase by 21% to 23 % Y-o-Y.
This retail extension has developed at a rate of 16% to 18% as far as the total number of outlets
and the available retail space with same channel development which is around 25%.

In India, footwear industry is as same as its universal partners, it’s been characterized in three
parts, Men, Women and Kids. Footwear of Men is showcasing a development at a compound
annual growth rate of 10%. Currently, Men's footwear market contributes 60% of the

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transactions in the footwear share as in contradiction of 30%. Ladies' portion is
notwithstanding, increasing at a considerably quicker compound annual growth rate of 20%.

In view of the utilization, the market can be segregated into 2 groups:

•Regular (comprises of day to day and sports footwear)
•Occasional (comprising of premium and extravagance)

With price point, the footwear market can be segregated into 5 groups:
• Mass (INR 150 to 700)
• Mid economy (INR 700 to 1,000)
• Sports or Active wear (INR 1,000 to 3,000)
• Premium (INR 3,000 to 5,000)
• Luxury (Above INR 10,000)

The footwear market in India is shared among sorted out and unorganized segments. The serene
section pleases around 1/3rd of the market while the remaining share of the industry is pleased
by the unorganized players.
The rural market is to a greater extent undiscovered by the footwear producers. Manufacturers
are re-building themselves and boosting particular items and cost reaches to increase their
quality and also their buyers in the rural places.

1.5 Government regulations

Product security: The General Product Safety Directive fundamentally expresses that all
items advertised must be sheltered to utilize. It shapes a structure for every single particular
enactment built up for particular items and issues. On the off chance that no particular
legitimate necessities have been set up for the item and its uses, the General Product Safety
Directive still applies. In the event that particular prerequisites apply, the General Product
Safety Directive applies furthermore, covering all security angles which might not have been
portrayed particularly.

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Chemicals – restricted substances: There are confinements on an extraordinary number
of synthetic substances promoted, on the grounds that they can represent a peril to individuals
or the earth. These limitations are viewed as the most troublesome authoritative necessities that
the organizations will look as a maker. Footwear regularly comprises of little parts of various
materials, and volumes are frequently not excessively enormous, contrasted with the article of
clothing industry, which faces similar necessities. This makes it troublesome for the makers to
guarantee that all parts consent to the arrangement of confinements.

Labelling: All footwear must have names giving data on the primary materials utilized in the
shoes. The naming must depict the materials of the 3 principle parts of the footwear (the upper,
the coating and sock, and the external bottom). For each of these, visit name must show whether
the material is "calfskin", "covered cowhide", "material" or "other". They can give this data in
words or by utilizing any images.

Made-in naming: Textile items must be named with the fiber synthesis and utilizing the
fibre names as per the nation's standards. The point of this regular arrangement of marking
decides is to guarantee that the shoppers comprehend what he/she is purchasing. Items from
wild plants and creatures: If the organizations utilize materials produced using wild plants or
creatures – for instance, boots made of crocodile cowhide, they have to ensure that they
conform to the prerequisites of the “International Trade in Endangered Species (CITES)”.

IP rights: If the organizations pitch their own gathering to purchasers, they should confirm
that they are not damaging any licensed innovation (IP) rights. These rights may apply to the
structure of the item, and in addition to any of the trademarks or pictures utilized.

6
 PART B
COMPANY PROFILE

2.1 Background of the company

Mr. Tomas Bata

Bata Shoe Company was established by the well-known business visionary Mr.Tomas Bata
who raged the undeniable trend in the shoe making business in 1894. The organization began
from Zlin, Czechoslovakia, which is now popularly known as the Czech Republic. Bata has
been the biggest producer and advertiser of footwear from that day.
Bata company has built a solid dissemination channel everywhere throughout the world
through the foundation around more than 6,300 retail stores, establishment and a huge number
of terminals and merchants 10,000. In excess of 50,000 individuals are specifically associated
with the generation and offering of more than 300Million sets of shoes every year. Bata Shoe
Company deals with a retail nearness in 55 nations, and runs up to 40 creation offices crosswise
over 26 nations. Bata worldwide head office is situated in Switzerland, which was beforehand
situated at Toronto, in Canada.

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 "The first BATA store opened in Zlin, Czechoslovakia (1899)."

Bata Business
Bata Shoe Organization organizations are engaged with each feature of matter of footwear. All
around the world, Bata administrations clients from the outlet deals base to the processing plant
base.

Trading
Bata organizations have assembled fruitful store location ideas to fulfil changing buyer
preferences and needs. Every store highlights stock focused on various lifestyles and
individuals. The stock extents from shoes to apparel and products complementing their shoes.

8
Affectability to and fulfilment of client needs and their needs has permitted the Bata
Organization as a world pioneer in footwear.

Production
The Bata's progressive idea was to industrialize the shoe manufacturing procedure of those
times. That kind of reasoning was the main thrust behind their achievement. Bata has been a
pioneer in the assembling of shoes throughout the years. Bata work force have made imperative
advances in DVP (“Direct Vulcanization Process”), PVC, athletic shoes creation and slush
shaped footwear generation.

Wholesales
Bata appreciates one of a kind position in the discount commercial centre. Worldwide
economies of scale empower BSO plants so that they can offer quality products at
neighbourhood costs, with many working at ISO norms. Bata organization generation offices
which are widely acclaimed with the responsibility to their quality and clients, and have pulled
underway contracts from various universal shoe making brands.

Products and their Development

All through the entire world, Bata ® mark separates well-made and very much valued footwear.
Most of the centre articles for Bata ® marked accumulations are planned in item advancement
focuses in Italy, Canada and the far east. Creators and merchandisers in Bata organization have
widen the accumulations by creating correlative styles that will reflect preferences of
customers, their spending plans and atmospheres inside their very own market. Firm quality
control administers the determination of supplies and all creation phases.

Specialty Units of Bata

Bata at present is working its business in five specialty units, for example, Europe, Asia Pacific,
Latin America, North America, and Africa. It declares overall nearness over these 5 specialty
units.

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 “EVOLUTION OF A LOGO 1894 TO 1924”
“From the Czech original – which bore the initials of founders Tomáš and Antonín Bata – to its instantly
recognizable present-day form, the Bata logo has always stood for quality, comfort and innovation.”

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Bata India

Bata India is the India's biggest vendor and top manufacturer of shoes and is a part of the “Bata
Shoe Organization”.

Started as “Bata Shoe Company Private Ltd.” In the year 1931, the organization was at first
started in a small process of operation in Konnagar (near Calcutta) in the year 1932. In January
1934, the establishment stone for the main working of Bata's task which is presently called the
Bata. In couple of years, this site has grown in region. This township is now prominently known
as the Batanagar. It was also the first manufacturing unit in the Indian shoe making industry to
get its ISO: 9001 certified.

Bata became public company in the year 1973 when they changed their name to “Bata India
Ltd.” Today, Bata India has grown as the largest footwear store in India. Its retail system of
over 1375 outlets gives it a benchmark that no other footwear companies can reach to. Their
stores are set up in great areas and can be seen in the greater part of the metro cities, small scale
metro cities and towns.

Bata's brilliant looking new retail stores are supported by a scope of increased quality items are
gone to offer a better shopping experience its clients.

The Bata works as a huge non-retail circulation arrange through its urban wholesales portion
and considers its customers through more than 30,000 dealers.

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2.2 Promotors information

BOARD OF DIRECTORS:

Uday Khanna.

Chairman & Ind. Director

Rajeev Gopalakrishnan.

Managing Director

Sandeep Kataria.
Whole Time Director & CEO

Ram Kumar Gupta.

Director - Finance & CFO

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 Ravindra Dhariwal.

Independent Director

Anjali Bansal.

Independent Director

Akshay Chudasama,

Independent Director

Shaibal Sinha.

Non-Executive Director

2.3 Nature of business

Bata Brands is a global shoe making situated in the place Lausanne in Switzerland. Bata is a
family owned worldwide footwear and fashion accessories manufacturer and retailer. The
organization is composed in three specialty units: ‘Bata’, ‘Bata Industrials’ and ‘AW Lab’. The
organization has a retail stores of more than 5,300 shops in excess of 70 countries and creation
centres in 18 countries.

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2.4 Vision, Mission and Values

Vision:
“To grow as a dynamic, innovative and market driven domestic manufacturer and
distributor, with footwear as our core business, while maintaining a commitment to the
country, culture and environment in which we operate.”

Mission:
“To be successful as the most dynamic, flexible and market responsive organization,
with footwear as its core business”

Values:
•Serve with passion
•Be bold
•Count on me
• Improving lives
•Exceed customer expectations

2.5 Achievements and awards

"IMAGES Most Admired Footwear Brand of the year 2017, at the

18th Annual IMAGES Fashion Awards"

"Featured among AFAQ’s 2017 India’s Buzziest Brands"

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"DUN & BRADSTREET Corporate Award 2017"

"The Most Trusted Brand (Retail) - Brand Equity recognized Bata

into the 'Top Most Trusted Brands' in November 2013"

"Udyog Rattan Award - The Institute of Economics Studies honored

Mr. Rajeev Gopalakrishnan and the Company with the Certificate of
Excellence and Gold Medal at the 'International Global Meet'
scheduled on the 23rd January 2014. The IES commits to improve
the country economy through its activities by holding conferences &
group discussions on the issues of contemporary business and
economics interests."
"The Most Attractive Brand at the 11th Position - Most attractive
brand at the 11th position - 2013. The report India's most attractive
brand is globally, the foremost intensive study on Brand
attractiveness. It is a comprehensive list of most attractive brands
based on 36 traits of attraction quotient, find a survey research firm
TRA"
"Images Shoes & Accessories Forum Held at Mumbai - Bata India
bagged the award for 'Most Admired Large Format Multi Brand
Footwear Retailer of the Year' by the Images Shoes & Accessories
Forum - 2013"

15
2.6 Product Profile

Bata owns the following brands:

• Bata
• North Star
• Weinbrenner
• Bubble gummers
• Power
• Bata Industrials

2.7 Areas of operation

• Europe
• Africa
• Asia
• Latin America

2.8 Future and growth prospectus

Bata India is as of now over-priced. The price-to-equity proportion is not effectively utilized
as there's insufficient clarity for its cash-flows. The stock's proportion of the business is
currently above normal, implying that it is exchanging at a costlier value in respect to its peers.
Bata India's offer cost is very steady with respect to others in the market, as demonstrated by
its low beta. This implies in the event that we trust the current offer cost should move towards
its intrinsic value over a period of time, a low beta could recommend it isn't probably going to

16
achieve that level at any point in the near future, and once it's there, it might be difficult to fall
down into an appealing purchasing range once again.

Financial specialists searching for development in their portfolio might need to think about the
possibilities of an organization before purchasing its offers. Purchasing an incredible
organization with a powerful standpoint at a shoddy cost is dependably a decent speculation,
to take a look into the organization's future desires. Bata India's income throughout the
following couple of years are relied upon to increment by 94.59%, demonstrating a profoundly
hopeful future ahead. This should prompt more hearty cash-flows, boosting into a higher share
value.

17
 PART C
McKinsey's 7S framework

McKinsey 7S Framework or Model is used to study the management activities of the

organization and making them as productive so as to succeed. It gives a structure which
considers the organization all-in-all with the goal that the organization's issues might be
distinguished, investigated and a system might be produced and implemented for handling it.
7S Framework or model was introduced in the late 1970s to help organizations in labeling to
troubles of progress in the organization. The most remarkable actuality about the McKinsey 7S
Framework is that McKinsey specialists tried widely in their investigations of numerous
organizations. The most amazing component about the 7-S demonstrate is that it bolsters and
is comparable in nature of the administrative capacities, for example, planning, organizing,
staffing, leading and controlling.
There are seven components of McKinsey 7S Framework which can be ordered in as hard and
soft components. Hard Elements are Easier for organization to distinguish and influence them.
They are more substantial. Soft Elements are Difficult for the business to recognize and
influence them; also, Intangible and affected by culture.

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STRUCTURE:
The functional organizational structure categorizes the activities of the organization in different
areas of specialization. This methodology includes a lot of process standardization within the
organization itself, with the genuine decision-making authority is with the top level of the
organization.

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SKILLS:

• Diverse
Diverse skill sets are essential to an employee as it can be used in techniques
and strategies that assist the employees to get-along and manage individuals who are different
from each other. Effective communication required with an open mentality, a level of
sensitivity, undivided attention, and awareness with different societies, qualities, personalities
and opinions.

• Imaginative
Innovative skills of looking at thinks in a new and a different way. It is the
simple meaning of "thinking outside the box". It includes what is called as lateral thinking, or
the capacity to see things that are not obvious.

• Skillful
Employee must be good getting things done, as he/she will be trained in the respective
work that they are recruited for.

• Enthusiastic
Enthusiasm refers to how the employee will to show his keen interest in the
work allocated for him, as well as his acceptance to get involved into the work.

• Team Player
Employee must be able to puts aside his personal life and work for the organization, he
must be capable enough to get along with his subordinates and work towards the common goal
of the business without any complaints.

• BATA also empowers their employees with the training to reach their potential.
Bata India has its own online training academy (“BATA Training Academy”) in which
the employees will have access to view the courses available for them.

20
STRATEGY:

• Increasing sales and Creative designs:

” Bata’s revenues have declined 10-15% in November – sales were severely
affected in the first week of demonetization, but somewhat improved thereafter. Bata rolled out
some company-level schemes in the second week of demonetization, the response to which has
been in line with management expectations. Ladies footwear witnessed healthy traction in
sales, aided by new designs and wedding season demand. Bata also launched some wedding-
specific designs to boost sales. 1HFY17 SSG growth has been ~3%, but revenue growth has
been flattish due to unfavorable product mix. Usage of plastic money has increased in rural
areas (from 15% - 40%) and nationally (from 50% - 80%).”

• Emphasis on women’s’ footwear and advertisement expenses to increase

growth:
“Bata intends to capitalize on healthy trend in its women & kids’ footwear by
launching new designs at regular intervals. The company has created separate area for Bubble
gummers (children shoes) in some stores to increase visibility. It also intends to increase rural
penetration via the wholesale route. Other brands (Hushpuppies, Footing, etc.) contribute
~16% to revenues, and K-stores (~450) have also witnessed increase in commission levels. Bata
plans to once again focus on ad spends (~1% of revenues in FY16) to highlight its new launches
without impacting margins. It has hired an expert to strategize its ad campaigns/strategy.”

• Growth of E-commerce:
“Although a late entrant in e-commerce, Bata has been gradually working on its
online strategy. It sells through its own website, and has also tied up with leading partners like
Amazon and Flipkart. Bata has also been closely working with these channels to understand

21
buying patterns of online consumers. Unlike other players, it has maintained discounting
discipline and offers only ~10-15% discounts. Additionally, it has launched a whole new series
of designs exclusively for the e-commerce channel. The company now offers 400 new products
v/s 130-150 last year. These initiatives are likely to increase its online sales contribution from
3%currently to high-single-digits in FY18.”

• Store extension strategy:

“Due to dampening retail sentiment, new store openings have declined across
the industry. Rental costs too have comedown, which has provided negotiation power to Bata.
In line with this, it negotiated lower rentals for 130 stores (out of total ~1,200 stores) that were
due for renewal. The current situation has led Bata to revisit its store expansion strategy (it now
intends to open 70-75 stores annually – opened 65stores and closed 30-35 smaller stores till
November).”

SYSTEM:
• BATA Management System (BMS):
Bata as an organization is a very systematic and works as a living animal that
is, learning, adapting and organizing. Additionally, it has been seen as such by Bata and his
associates—a label for Bata representatives, replicated by the present Walmart. People who
worked in Bata felt to be as part and component of any living creature, not that of some well-
oiled, well-crafted machinery.
Bata as an organization worker on the system of Ten Principles, i.e. key measurements and
their down to earth acknowledge, which shaped the Bata Management System (BMS): The
organization was a private company, not an public company: there was no sufficient open stock
and no open exchanging with organization possession. The organization made an agreeable
human, biological and design concurrence with its prompt surroundings of Zlin and the
Moravian district in general. Representatives were accomplices and partners (collaborators),
equipped for compelling participation, sharing and extensive forfeit.

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STAFF:
Classification of various groups of staff:

SHARED VALUE:

• “Serve with passion”

“We are passionate about delighting our customers. Serving their individual
needs defines everything we do. It is this passion for what we do that sets us apart from
our competitors. We are proud and energized by being part of a family company with
deeply held values. We have all invested something of ourselves in the company and
act as if the company was our own. We like to win but not at all costs. We take
responsibility for how we impact the many and diverse communities in which we
operate.”

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• “Be Bold”
“We are pioneers. We value individuals with the courage to change, and to be
prepared to fail sometimes. We have a healthy dissatisfaction for the status quo. We
encourage creativity. We recognize curiosity and original thought. Innovation is the
foundation stone of our company. We embrace the future but take time to learn from
the past. We do what we say we will do and do not rest on our laurels. We celebrate
success and value everyone’s unique contribution towards achieving the goal.”

• “Count on me”
“We lead by example and follow when called. We value those who take
accountability for their successes and failures. We take responsibility for our own
performance and the performance of those around us. We encourage and support others
to do their best. We place great importance on developing ourselves and those around
us and we believe that feedback is the breakfast of champions. We share openly with
others and we act with integrity in all that we do.”

• “Exceed customer expectation”

“Whether it is products, processes, or people, we are uncompromising when it
comes to quality. We strive to create products that are easy to buy, exciting to wear,
and exceptional value. We strive to be the most responsible and efficient in all that we
do it order to deliver the best value to our customers. We operate where design, comfort
and value meet. Delighting the diverse needs and preferences of our customers is our
lifelong mission.”

• “Improving lives”
“Making people’s lives better has been at the core of the company’s philosophy for over
120 years. We do this by displaying respect for our customers, suppliers, employees and
the communities we touch. We believe that we can make a difference in the lives of
everyone we touch through openness and tolerance to race, religion or cultural differences.
We offer an inclusive and supportive work environment to our employees where

24
individuality is valued, where people can ‘be themselves’, and where everyone is encouraged
to grow.”

STYLE:

Bata follows situational leadership style:

The group focuses on using a variety of leadership styles comfortably. They learn to assess
individuals’ competence, commitment and need for direction and support. They then work on
how to enter agreements with people about their development level and the leadership style
they need to help them in achieving individual and organizational goals.

25
 PART D

SWOT Analysis

Strengths
1. Bata has a worldwide Presence in over 70 countries and production facilities in 27 countries
2. Benefit received from link to the international organization for back-office systems, product
innovations and sourcing.
3. Bata showrooms are found in all the major cities, mini-metros and towns
4. Sells through over 1200 retail stores in India and 5000 stores worldwide
5. Bata company employs more than 6800 people in India and 40000 people worlds over and over
30,000 dealers
6. Excellent advertising and brand presence
7. Wide range of footwear including ladies’ sandals, heels, sports shoes, men formal shoes, trek
shoes, accessories etc

Weaknesses

Here are the weaknesses in the Bata SWOT Analysis:

1. High cost for brand protection for Bata products
2. Intense competition in the footwear segment means limited scope to overhaul market share

Opportunities
Following are the Opportunities in Bata SWOT Analysis:
1.People now look towards buying footwear as a blend of fashion and comfort, so now has an
increasing market size
2. Bata has an opportunity to create a separate division for tackling the rural markets in emerging
nations
3. Global expansion in the premium footwear section

Threats
The threats in the SWOT Analysis of Bata are as mentioned:
1. Intense competition from other leading footwear brands can affect Bata's margins
2. Commoditization if fashion footwear not differentiated well

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 PART E

Financial Statement with Ratio Analysis

BALANCE SHEET AS AT 31 MARCH 2018
(Amount in INR millions except as otherwise stated)

27
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31
MARCH 2018
(Amount in INR millions except as otherwise stated)

28
 Ratio Analysis:

Ratio Mar '18 Mar '17 Mar '16

Current Ratio 2.72 2.52 2.08

Quick Ratio 1.37 1.14 0.79

Inventory Turnover Ratio 3.54 3.61 3.88

Debtors Turnover Ratio 36.07 37.77 49.28

Investments Turnover Ratio 3.54 3.61 3.88

Asset Turnover Ratio 1.97 2.19 2.89

Current ratio:
Current assets
Current liabilities

A current ratio of excess of 1 implies that business has additional CA per rupee of
CL, inferring that it can pay its present liabilities utilizing its available resources. At the end of
the day, its activities won't be disturbed.

Acid test ratio or Quick ratio:

Quick Assets
Current Liabilities

Quick ratio is the genuine record of monetary liquidity or the creditworthiness of a company
i.e., the capacity of an organization to cater its commitments out of its quick assets. Here, the
quick ratio is more than the standard value 1:1, it implies that the organization can satisfy its
immediate liabilities out of the quick assets with no difficulty.

29
Inventory turnover ratio:
Sales
Inventory

Inventory turnover ratio is the ratio which shows the number of times the stock of
the company is sold during a year. It is the ratio amongst stock and the COGS. As such there
is no ideal stock turnover ratio, since it all depends on the type of goods, what they deal with.
Generally, more the ratio more will be the operational efficiency.

Drs turnover ratio:

Net annual credit sales
Average trade debtors

Drs turnover ratio is that which reflects the amount of times the company has
collected its debts in a year. It is the relation of debts and the net credit sales. As such there is
no ideal stock turnover ratio, since it all depends on the type of goods, what they deal with.
Generally, more the ratio more will be the operational efficiency. It enables the management
to decide upon the credit period to be allowed and to make decision on working capital fund
allocation.

Investments turnover ratio:

Net sales
(Shareholders' equity + Debt outstanding)

This ratio links the profits that are generated by the organization to that of its debts
and of its equity. It is used to estimate the capability of the organization’s team to create profits
with a specific amount of capital. The higher the ratio, the more efficient the company is in
generating revenues from its debt and equity capital.

30
Asset Turnover Ratio:
Net sales
Total assets

Asset turnover is a measure of a company’s effectiveness in using its resources. It

shows how many times their assets were sold in a particular period of time in order to create
sales. This ratio measures how proficiently a business makes use of all its assets. It also
provides the investors and creditors an idea about how the business is be able manage itself and
how it uses its resources to yield its products and sales.

31
 PART E

Learning Experience

The theoretical topics which we study were actually applied in the real environment of the company
though there were many changes adopted by them, I studied SWOT which was an important tool to
know the strength, weakness, opportunity and threat which helps in improving the company’s
performance. And also, MCkinsey's 7S model, And the experience of How the industry has been
booming at a higher pace and also the companies are working in bringing better products for the
customers that would match the trends. It also provided with a greater knowledge on different aspects
and working of the industry. It also gave me an idea of different is the fashion and footwear industry
when compares to other industries and hence this study gave me a lot of exposure towards learning
and gave me an opportunity to explore in every way and grab the maximum learning throughout the
internship and organization.

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 BIBILIOGRAPHY
• https://www.bata.in/0/pdf/BIL_Way-Finders-Brands-Limited_Annual-Report-2017-18.pdf
• https://www.bata.in/bataindia/sc-181_cat-42/investor-relations.html
• https://www.bata.in/0/pdf/WayFindersBrandsLimited-AnnualReport2016-17.pdf
• https://www.bata.in/0/pdf/BataAnnualReport2014-15.pdf
• https://www.referenceforbusiness.com/history2/39/Bata-Ltd.html
• https://economictimes.indiatimes.com/bata-india-ltd/stocks/companyid-13974.cms
• https://www.bata.in
• https://www.assignmentpoint.com/business/organizational-behavior/bata-shoe-company-
ltd.html
• https://simplywall.st/stocks/in/consumer-durables/bse-500043/bata-india-shares
• https://simplywall.st/stocks/inconsumer-durables/nse-bataindia
• http://batagroup-hr.com/trainingacademy/en/
• http://www.milanzeleny.com/Files/Content/BMS
• https://www.motilaloswal.com/site/rreports/HTML/636166979634368068/index.htm
• https://www.bata.com/corpo/heritage/returning-to-the-source/
• https://simplywall.st/stocks/in/consumer-durables/nse-bataindia/bata-india
• https://www.goodreturns.in/company/bata-india/management-team.html
• https://www.indiainfoline.com/company/bata-india-ltd/summary/60
• https://www.indianretailer.com/article/launch-pad/fashion-and-accessories/India-s
• https://www.mbaskool.com/brandguide/lifestyle-and-retail/2432-bata.html

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