Professional Documents
Culture Documents
14 PDF
14 PDF
14 PDF
12 mfvcwZi fvlY
8 retail & marketinG events
16 cwiPvjKgjxi cwZe`b
9 manufacturinG
20 KcviU Mfb
10 corporate social responsiBility
28 Kgcvq mvwUwdKU
11. Human resources, product development &
mercHandisinG
31 wbixK`i cwZe`b
16 directors' report
32 wwZc
20 corporate Governance
33 jvf-jvKmvb wnmve
28 compliance certificate
67 cw dig
compreHensive income
34 statement of cHanGes in equity
35 statement of casH flows
37 notes to tHe financial statements
68 form of proxy
1
2014
Board of directors
Chitpan Kanhasiri
K M Rezaul Hasanat
Present position
independent director
vice chairman & managing director
(appointed on 1 april 2014)
Present position
chairman and ceo, viyellatex Group
Previous positions
trustee, Bangladesh csr center.
acting company manager, Bata malaysia sdn Bhd
advisory Board member, Green industry platform, unido
retail & non retail sales manager, Bata (thailand) limited
Kumar Nitesh
Present position
vice chairman & managing director
(retired on 1 april 2014)
Previous positions
managing director, Bata thailand
vice president, retail operations, Bata india limited
2 3
2014
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Auditors
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PvUvW GKvDUvUm chartered accountants
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House # 15, road # 12
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dhaka-1212
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wbixK Compliance Auditors
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PvUvW GKvDUvUm chartered accountants
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(old -27), dhanmondi
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Avwgb Dwb G GmvwmqU&&m amin uddin & associates iwRvi bw_fz ne, ZuvivB jfvski Rb ea ej MY neb|
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mahbubul Hoque & associates
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1. Ux, MvRxcyi 1. tongi, Gazipur
2. avgivB, XvKv 2. dhamrai, dhaka
4 5
notice of annual General meeting
notice is hereby given that the 43rd annual General meetinG of Bata shoe company (Bangladesh) limited
will be held at dhamrai factory, dhaka, on 25 June 2015, thursday at 10:30 a.m. to transact the following business:
1. to receive, consider and adopt the directors report for the year ended 31 december 2014.
2. to receive, consider and adopt the audited financial statements of the company and the auditors report
thereon for the year ended 31 december 2014.
3. to declare dividend as recommended by the directors.
4. to elect directors.
5. to appoint auditors for the year 2015 and to fix their remuneration.
NOTES:
1. 10 May 2015 is the RECORD DATE. shareholders whose names appearing in the share register of the
company or in the depository register on that date will be eligible to receive dividend as approved at the annual
General meeting.
2. a member eligible to attend and vote at the General meeting is entitled to appoint a proxy to attend the meeting
and vote on his/her behalf.
3. form of proxy, duly completed, must be deposited at the companys registered office at least 48 (forty- eight)
hours before the appointed time for the meeting. a proxy form is enclosed.
6 7
2014
retail
manufacturing
marketing events
in 2014, we have done plenty of marketing events to highlight our brand image and to increase sell. Bata in our manufacturing operations we undertook some further restructuring in line
Bangladesh introduced many exclusive new lines of shoes the majority of which comes during festival periods. with company objectives at the beginning of the year. as a result, our production
these new arrivals were introduced in different Bata brands. some of them are as follows: facilities at tongi and dhamrai remained fully loaded throughout the period to meet
the demand of higher value products in particular pu sole footwear. these facilities
produced 26.8 million pairs of shoes.
fashion would never be completed without a well-designed pair of shoes. this
marketing insight prompted Bata to introduce a number of designers collections for
men, women and children in this 2014 spring summer season. to emphasize its
attractive and colorful collection, Bata Bangladesh recently organized a fashion
show highlighting its spring summer collection at level-7 of Bashundhara mall
shopping complex, dhaka. several journalists, media personals and a large
number of customers were also present.
the show introduced 2014s spring summer collection with its existing brands like Bata industrials
Bata, ambassador, marie claire, moccassino, weinbrenner, Bata comfit, patapata,
as one of the largest manufacturers of safety shoes, Bata plays a major role in safeguarding
power, north star and Bubblegummers. the launching of the new arrivals this year the health of the worlds workers. from the heavy duty work boots to elegant and sporty
brings out many different colorful collections and quality footwear by Bata. footwear, Bata industrial has a wide range of shoes for every vocation, where safety counts.
uncompromising quality with striking designs have put Bata shoes in a key position the brands exclusive features include; shock absorbing tunnel system, tritech plus anti-
to appeal to different segments of consumers. the fashion show was segmented slip soles, Bata cool comfort linings and integrated tpu toe caps. Harnessing its global
in different categories (mens, ladies and children) and different lifestyles following expertise, Bata industrial provides the highest level of protection while keeping the wearers
the latest trend with the country's top fashion models ramping. feet cool and comfortable while on the job.
8 9
2014
corporate social responsibility Human resources
BCP-BANGLADESH, SCHOLARSHIP FOR EMPLOYEE'S CHILDREN we are very much focused improving the professional skills of the
under Bata childrens program Bata Bangladesh arranged a scholarship human resources of the company. a large number of our personnel
program on 18th march, 2014. in this program they gave away participated in both overseas and local training programmes and
scholarship to five children of permanent unionized employees of tongi seminars. during 2014 a total of 9 employees participated in 9
and dhamrai who did outstanding result on their secondary examination. overseas training and 700 employees were envolved in 22 local
training programmes.
10 11
2014
wbixK`i cwZe`bmn cwiPvjKgjxi cwZe`b Avcbv`i cvIbv UvKv Av`vq c~Y wbqb Avivci gvag|
performance and the audited financial statements for the business significantly and to capture unit sales, market
Aeivai gZ ivRbwZK Av`vjb cZ Ki | ZeyI Ggb and road blockades especially in the second half of the Avgv`i Drcv`b eevcbvq eQii iZ Kvvwbi msM year as a result of shifting business to high priced leather
AwiZvi gaI Avcbv`i Kvvwb j ARbi Rb cwZkwZe msMwZc~Y AviI wKQz cybMVb Kiv nq| Gi dj Avgv`i Ux I
year. even so your company remained committed to collection as compared to conventional products to other
gZ Kvhvewj `ki AvBb-kLjv cwiwwZ, gy`vxwZi gvMZ Pvc, cv`yKvmvgMx mviv eQii Pvwn`v gUvZ ciQ| GB myweavq
production and sales were achieved under the incredible in our manufacturing operations we undertook some
weqKgx msv AfixY welqvejx bwZevPKfve eemvK Kvvwb 26.8 wgwjqb RyZv Drcv`b KiQ|
guidance of our management team despite, bleak law and further restructuring in line with company objectives at the
beginning of the year. as a result, our production facilities
evavM KiQ|
order situation, persistent inflationary pressure and some
Avcbv`i Kvvwb Zvi HwZnMZ cY Pj, mvbWvK, mvgvi
in-house issues linked to sales staff that negatively at tongi and dhamrai remained fully loaded throughout the
2014 mvj Kvvwbi gvU weq wQj 8.077 wewjqb UvKv hv MZ jvBbi cPzi cwigvY weqK Dcv bv Ki MvnKi Pvwn`v K_v
impacted the business. period to meet the demand of higher value products in
cwiPvjKgjx m Gi Rb h eQi kl Kvvwbi m I `xN the company has an effective cash flow management cyivi, AvBwmGgGwe KZK c` miv KcviU mvbbv cksmvc
our sterling performance has made us a market leader in
gqv`x Kvb Avw_K mxgveZv bB| AvBwmGgGwe mvwUwdKU Ae gwiU 2014 jvf KiQ| evUv `ki
system in place whereby cash inflows and outflows are the shoe business. the company also managed to achieve
mvji AeZxKvjxb jfvsk 175% wWm^i gvmB cwikva Kiv Zv`i gZvK Aviv my`p KiQ| Gjv mgvRi DbwZZ
Based on the performance and progress made by the country to involve themselves in the rural area sales
company, your directors have decided to recommend
Kvvwbi AwKvi I AvMn cybe KiQ|
project. this proves our commitment and enthusiasm
nqQ| 105% final cash dividend. this will make a total 280% cash towards the growth of the company.
12 13
Avcbv`i Kvvwb `ki mgvRi K_v weePbv Ki 2014 evUv your company believes in the development of the
wPjWbm& cvMvgi AvIZvq Qv`i ga Qvew Pvjy KiQ| GiB community in the country. in the year 2014 under Bata
AvIZvq Ux Ges avgivBqi BDwbqbfz 5 Rb vqx Kgxi mvb`i
childrens (Bcp) program your company arranged a
Kvbnvkix Qvov Abvb cwiPvjKe` GB evwlK mfvq Aemi Mnb in accordance with the articles of association of the
Kijb Ges cybtwbevPbi hvM weavq cv_x njb|
company, all the directors, except the managing director,
mr. chitpan kanhasiri will retire at the annual General
2014 mvji 30 wWm^i Avcbv`i Kvvwbi 10 UvKvi cwZwU meeting and being eligible offer themselves for re-election.
kqvi XvKv K GP 1,172.10 UvKv Ges PMvg K GP your company shares of a nominal value of tk. 10.00
1,143.80 UvKvq q-weq nq|
were traded at tk 1,172.10 on the dhaka stock exchange
and tk. 1,143.80 on the chittagong stock exchange
Avgiv hw` mvgb GZ PvB Zvnj Avgv`i m`v cwieZbkxj respectively on 30, december 2014.
A_bwZK, wecbb kZvejx I k cwZwZvi gvKvejv KiZ as we move forward, we are certain to face competitions
ne| Avgv`i h kw iqQ Zv w`q Avgiv fwelZ mB mKj
and challenges due to ever changing economic and
14 15
15
2014
directors' report 2014
your directors have pleasure in submitting their report and audited financial statements of the company for Audit Committee Meeting
the year ended 31 december 2014 along with the preceding five years as follows:
the audit committee is a sub-committee of the Board. all members of the audit committee were appointed by
the Board of directors from amongst the members. they met twice during the year 2014. the company
Industry Outlook
secretary was the secretary of the committee. the audit committee is comprised of:
the footwear sector in the country witnessed a moderate growth during the year. the company attained a
growth of 3% during the current year. it is expected that the growth trend will increase under the prevailing mr. rashidul Hasan chairman independent director
market conditions. mr. fernando Garcia restrepo member (resigned on 1 april 2014)
mr. rajeev Gopalakrishnan member (appointed on 1 april 2014)
Cost of Sales & Profit Margin mr. kumar nitesh member (resigned on 1 april 2014)
mr. chitpan kanhasiri member (appointed on 1 april 2014)
the overall costs of raw materials remain stable internationally. so, the cost of sales has decreased in 2014 as
mr. shaibal sinha member
compared to net turnover due to strict control over the consumption of raw materials and other cost of
mr. k m rezaul Hasanat member as independent director
production. consequently the gross profit has increased over that of 2013.
Reports on Activities of the Audit Committee
Key Operating & Financial Information
the audit committee has performed regularly the following activities:
your directors have pleasure in submitting the key operating and financial data of the company for the year
ended 31 december 2014 along with the preceding five years below: oversee the financial reporting.
monitoring the choice of accounting policies, principles, internal control and risk management process.
Financial results 2014 2013 2012 2011 2010 2009
Taka Taka Taka Taka Taka Taka
oversee performance of statutory auditors.
000 000 000 000 000 000
net profit before tax 1,017,920 1,153,284 971,389 793,620 742,971 629,692 reviewing the annual financial statements before submission to the Board for approval.
provision for tax 317,250 340,200 299,473 213,003 199,000 180,286
reviewing the statement of significant related party transactions.
Net profit after tax 700,670 813,084 671,916 580,617 543,971 449,406
un-appropriated profit brought forward 2,009,391 1,606,707 1,313,782 1,075,166 873,194 724,748 The System of Internal Control
earlier year tax adjustment (3,240) - - - - -
the Board of directors assures the shareholders that the company has a robust risk management process to
loss on BB export winding up - - (2,791) - - -
ensure that the system of internal control is sound in design and has been effectively implemented and
Profit available for appropriation 2,706,771 2,414,792 1,982,907 1,655,782 1,417,166 1,174,154
monitored. although it is possible that all risks to the business are not known at present, the company takes
From which the Directors recommended the following appropriations:
reasonable steps to identify material risks that may hamper business results and systematically reviews these
risks in light of the changing internal and external environment in order to assess that the controls in place are
final dividend paid (previous year) 143,640 143,640 143,640 143,640 143,640 143,640 adequate to address these risks.
interim dividend paid (current year) 239,400 264,760 232,560 198,360 198,360 157,320
Total dividend 383.040 410,400 376,200 342,000 342,000 300,960 Directors Declaration as to Financial Statements
Un-appropriated profit carried forward 2,323,731 2,004,391 1,606,707 1,313,782 1,075,166 873,194
as part of preparation and presentation of the financial statements, the directors also report that:
Dividend a) the financial statements prepared by the management of the company present a true and fair view of
companys state of affairs, the result of its operations, cash flows and changes in equity.
for the year ended 31 december 2014 the Board of directors recommended an interim dividend of tk. 17.50 per
share amounting to tk 239,400,000 and now recommends a final dividend of tk. 10.50 per share amounting to b) proper books of accounts of the company have been maintained as required by law.
tk. 143,640,000 thus making a total dividend of tk. 28 per share amounting to tk. 383,040,000. c) appropriate accounting policies have been consistently applied in preparation of the financial statements
and the accounting estimates are based on reasonable and prudent judgment.
Directors Proposed for Re-Election d) the financial statements were prepared in accordance with Bangladesh accounting standards (Bas) and
the directors retiring as per article 104 of the companys articles of association are mr. rajeev Gopalakrishnan, Bangladesh financial reporting standards (Bfrs) as applicable in Bangladesh and there has not been any
mr. shaibal sinha, mr. rashidul Hasan and mr. k m rezaul Hasanat and being eligible offer themselves for departure there from.
re-election. e) the md and fd have certified to the Board that:
16 17
2014
i) they have reviewed the financial statements and believe: Pattern of Shareholdings Annexure - 1
a) these statements do not contain any materially untrue statement or omit any material fact or
contain statements that might be misleading; names of the shareholders along with their position of the shares are listed below:
b) these statements together present a true and fair view of the companys affairs and are in
Names of the shareholders Number of % holding
compliance with existing accounting standards and applicable laws. share held
i) parent/subsidiary/associate/related parties:
ii) there are, to the best of their knowledge and belief, no transactions entered into by the company
Bafin nederland (B.v.) 9,576,000 70.00
during the year which are fraudulent, illegal or in violation of the companys codes of conduct.
ii) directors/ceo/cs/cfo/audit Head and their
Auditors spouses and minor children
mr. rashidul Hasan 64 0.00
rahman rahman Huq (kpmG) chartered accountants, have offered their willingness to be appointed as
statutory auditors of the company. the Board recommends their appointment for the year 2015 and to continue iii) executives (Head of functions) nil nil
till the next annual General meeting. iv) shareholders, who hold 10% or more nil nil
on behalf of the Board of directors, v) others shareholders, who hold less than 10%
non-resident shareholders 1,101,254 8.05
local shareholders 3,002,682 21.95
Total 13,680,000 100.00
Chitpan Kanhasiri
managing director
27 april 2015 Board Meetings
the Board met 6 (six) times during the year 2014. the company secretary and finance director were also present
in the Board meetings. the attendance by each director is stated below:
18 19
2014
Annexure
Status of compliance with the conditions imposed by the Bangladesh Securities and Exchange
Commission's Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012 Issued under Compliance Status
section 2CC of the Securities and Exchange Ordinance, 1969: (Put in the Remarks
Condition Title appropriate column) (if any)
sec checklist: (report under condition no.7) No. Not
Complied Complied
Compliance Status
(Put in the Remarks (iv) the post of independent director(s) can not remain not no such
Condition Title appropriate column) (if any) vacant for more than 90 (ninety) days. applicable vacancy
created 2014
No. Not
Complied Complied (v) the Board shall lay down a code of conduct of all Board
members and annual compliance of the code to be
1.0 Board of Directors recorded.
1.1 Boards Size the tenure of office of an independent director shall be
(vi)
the number of Board directors should not be less than 5 (five) for a period of 3 (three) years, which may be extended
and more than 20 (twenty)
for 1 (one) term only.
1.3 Qualification of Independent Director (ID)
1.2 Independent Directors
(i) independent director shall be a knowledgeable
(i) at least one fifth (1/5) of the total number of directors in
individual with integrity who is able to ensure
the companys board shall be independent directors. compliance with financial, regulatory and corporate laws
(ii) a) who either does not hold any share or holds less than and can make meaningful contribution to business.
1% shares to the total paid-up shares of the company;
(ii) the person should be a Business leader / corporate
(ii) b) leader / Bureaucrat / university teacher with
who is not a sponsor of the company and is not
economics or Business studies or law background /
connected with the companies any sponsor or director
professionals like chartered accountants, cost &
or shareholder who holds one percent (1%) or more management accountants, and chartered secretaries.
share of the total paid-up shares of the company on the the independent director must have at least 12 (twelve)
basis of family relationship. years of corporate management / professional
(ii) c) experience.
who does not have any other relationship whether
pecuniary or otherwise, with the company or its (iii) in special cases the above qualifications may be not
subsidiary/ associated companies or its subsidiary
relaxed subject to prior approval of the commission. applicable
/associated companies. 1.4 Chairman of the Board and Chief Executive Officer
(ii) d) who is not a member, director or officer of any stock the positions of the chairman of the Board and the chief
exchange?
executive officer of the companies shall be filled by different
individuals with defined different roles and responsibilities. the
(ii) e) who is not a shareholder, director or officer of any chairman of the company shall be elected from among the
member of stock exchange or an intermediary of the directors of the company.
capital market.
1.5 The Directors Report to Shareholders
(ii) f) who is not a partner or an executive or was not a
partner or an executive during the preceding 3 (three) (i) industry outlook and possible future development in the
industry.
years of the concerned companys statutory audit firm.
(ii) segment-wise or product-wise performance.
(ii) g) who shall not be an independent director in more than
3 (three) listed companies. (iii) risks and concerns.
(ii) h) who has not been convicted by a court of competent (iv) a discussion on cost of Goods sold, Gross profit margin
jurisdiction as a defaulter in payment of any loan to a and net profit margin.
bank or a non-Bank financial institution (nBfi). (v) discussion on continuity of any extra-ordinary gain or no such
not
(ii) i) loss. gain/loss
who has not been convicted for a criminal offence applicable
occurred
involving moral turpitude.
(iii) (vi) Basis for related party transactions- a statement of all
the independent director(s) shall be appointed by the presented in
related party transactions should be disclosed in the
the financial
board of directors and approved by the shareholders in
the annual General meeting (aGm). annual report. statement
20 21
2014
22 23
2014
24 25
2014
appraisal or valuation services or fairness opinions. the ceo and cfo shall certify to the Board that:-
(i)
(ii) financial information systems design and (i) they have reviewed financial statements for the year and that to the best of their knowledge and belief:
implementation.
these statements do not contain any materially untrue
Book-keeping or other services related to the (i) a)
(iii) statement or omit any material fact or contain
accounting records or financial statements. statements that might be misleading;
Broker-dealer services. these statements together present a true and fair view
(iv) (i) b)
of the companys affairs and are in compliance with
actuarial services. existing accounting standards and applicable laws.
(v)
there are, to the best of knowledge and belief, no
internal audit services. (ii)
(vi) transactions entered into by the company during the
year which are fraudulent, illegal or violation of the
any other service that the audit committee determines.
(vii) companys code of conduct.
no partner or employees of the external audit firms shall 7.0 Reporting and Compliance of Corporate Governance
(viii) possess any share of the company they audit at least
during the tenure of their audit assignment of that (i) the company shall obtain a certificate from a practicing
the certificate
professional accountant/ secretary (chartered accountant/
company. is enclosed in
cost and management accountant/ chartered secretary)
regarding compliance of conditions of corporate this annual
audit/certification services on compliance of corporate report 2014
(ix) Governance Guidelines of the commission and shall send
governance as required under clause (i) of condition no. 7 the same to the shareholders along with the annual report
on a yearly basis.
5.0 Subsidiary Company
(ii) the directors of the company shall state in the directors'
report whether the company has complied with these
(i) provisions relating to the composition of the Board of conditions.
not
directors of the holding company shall be made
applicable
applicable to the composition of the Board of directors
of the subsidiary company.
26 27
2014
C H A R T E R E D A C C O U N TA N T S the Board of directors of Bata shoe company (Bangladesh) limited has constituted an audit committee to support
the Board in fulfilling its oversight responsibilities.
the audit committee meeting was held twice for the year 2014. the finance director, company secretary and the
Head of internal audit were invitees to the audit committee meeting.
Certificate on Compliance with Conditions of Corporate Governance Guidelines
Purpose of the Audit Committee
to the Shareholders of Bata Shoe Company (Bangladesh) Limited the role of audit committee is to monitor the integrity of the financial statements of the company and review and,
when appropriate, make recommendations to the main board on business risks, internal controls and compliance.
(issued under condition no. 7 (i) of corporate Governance Guidelines of Bsec vide notification no. the committee satisfies itself by means of suitable steps and appropriate information, that proper and satisfactory
internal control system are in place to identify and contain business risks and the companys business is conducted
sec/cmrrcd/2006-158/134/admin/44 dated 07 august 2012) in a proper and financially appropriate manner.
we have examined the compliance with conditions of the corporate governance guidelines by Bata shoe company Major Responsibilities of the Audit Committee
in 2014, the audit committee reviewed its terms of reference in line with requirements of Bangladesh securities and
(Bangladesh) limited (herein after referred to the company) for the year ended 31 december 2014. these
exchange commissions (Bsec) notification on corporate governance. the committee carried out its duties in
conditions of corporate governance were issued by the Bangladesh securities and exchange commission (Bsec) accordance with the terms of reference of the audit committee. some of the major responsibilities of the audit
vide its notification no. sec/cmrrcd/2006-158/134/admin/44 dated 07 august 2012 and sec/cmrrcd/2006- committee are as follows:
review the annual, half-yearly and quarterly financial statements and other financial results, and upon
158/147/admin/48 dated 21 July 2013. its satisfaction of the review, recommend the same to the Board.
review the adequacy and effectiveness of financial reporting process, internal control system, risk
those charged with governance and the management of the company is responsible for complying with the management, auditing matters, and the companys processes for monitoring compliance with laws and
conditions of corporate governance guidelines were issued by the Bangladesh securities and exchange regulations and the codes of conduct.
commission (Bsec). those charged with the governance of the company are also responsible for stating in the recommend appointment, termination and determination of audit fees for statutory auditors. consider
the scope of work, and oversee and evaluate the work performed by statutory auditors. review permitted
director's report whether the company has complied with the conditions of corporate governance guidelines. non-audit services performed by statutory auditors.
exercise its oversight of the work of internal audit department of the company. review the effectiveness
our responsibility is to provide a certificate about whether the company is in compliance with the said conditions of of internal audit function including performance, structure, adequacy of resources, and compliance with
corporate governance based on our examination. our examination for the purpose of issuing this certificate was professional standards. examine audit findings and material weaknesses and monitor implementation of
audit action plans.
limited to the procedures including implementation thereof as adopted by the company for ensuring the compliance
of the conditions of corporate governance and correct reporting of the status of the compliance on the attached Major Activities of the Audit Committee
reviewed and recommended to the Board the quarterly and annual financial statements for the year
statement on the basis of evidence gathered and representation received. it is neither an audit nor an expression ended 31 december, 2014.
of opinion on the financial statement of the company. considered and made recommendation to the Board on the appointment and remuneration of external
auditors, rahman rahman Haq., chartered accountants for the year 2015.
to the best of our information and according to the explanations provided to us by the company, we certify that, the reviewed the management letter from external auditors for the year 2014 together with managements
responses to the findings.
company has complied for the year ended 31 december 2014 with the conditions of corporate governance
approved the internal audit plan for 2015, monitored progress and effected revisions when necessary.
stipulated in the above mentioned guidelines issued by Bsec dated 07 august 2012. discussed internal audit reports and findings in detail with auditors and members of management and
monitored the status of implementation of audit action plans and provided guidance to ensure timely
completion of action plans.
reviewed the activities of the compliance function, incidence reporting and actions, and the status of
enforcement of the companys codes of conduct.
reviewed the internal audit charter.
arun kumer kundu, aca
reviewed and received report on the matters as per requirement from the securities and exchange
manaGinG partner
commission (sec).
dated, dHaka; ARUN & ANJAN
28 april, 2015 CHARTERED ACCOUNTANTS the above matters are significant recommendations for continuous improvement and therefore duly noted.
office: House # 18 (4th floor), road # 16 (old-27), dhanmondi, dhaka 1209. Rashidul Hasan
tel: 9104704, cell: 01819 401724, e-mail: arunrrh@gmail.com chairman, audit committee
28 29
For every step
independent auditors' report to the shareholders of
Bata shoe company (Bangladesh) limited
Report on the Financial Statements
we have audited the accompanying financial statements of Bata shoe company (Bangladesh) limited ("the company") which
comprise the statement of financial position as at 31 december 2014, and the statement of profit or loss and other comprehensive
income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Auditors' Responsibility
our responsibility is to express an opinion on these financial statements based on our audit. we conducted our audit in accordance
with Bangladesh standards on auditing. those standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
an audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
the procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. in making those risk assessments, we consider internal control relevant to the entitys
preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. an audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
in our opinion, the financial statements give a true and fair view of the financial position of Bata shoe company (Bangladesh)
limited as at 31 december 2014, and of its financial performance and its cash flows for the year then ended in accordance with
Bangladesh financial reporting standards.
30 31
Bata Shoe Company (Bangladesh) Limited
2014
Bata Shoe Company (Bangladesh) Limited statement of profit or loss and other comprehensive income
statement of financial position as at 31 December 2014 for the year ended 31 December 2014
Chitpan Kanhasiri Rashidul Hasan Md. Hashim Reza Chitpan Kanhasiri Rashidul Hasan Md. Hashim Reza
managing director director company secretary managing director director company secretary
& finance manager & finance manager
as per our report of same date. as per our report of same date.
dhaka, 27 april 2015 Hussain Farhad & Co. dhaka, 27 april 2015 Hussain Farhad & Co.
Chartered Accountants Chartered Accountants
32 33
2014
Bata Shoe Company (Bangladesh) Limited
statement of cash flows for the year ended 31 December 2014
2014 2013
(143,640,000)
(266,760,000)
(3,290,351)
(143,640,000)
(239,400,000)
1,854,000,579
813,083,564
2,256,684,143
700,670,101
2,571,023,893
Taka Taka
equity
Total
Taka
Cash flows from operating activities
(143,640,000)
(266,760,000)
(3,290,351)
(143,640,000)
(239,400,000)
1,606,707,776
813,083,564
2,009,391,340
700,670,101
2,323,731,090
Retained
earnings
cash payments to suppliers and contractors for goods and services (5,718,535,019) (5,568,042,699)
Cash generated from operating activities 1,007,931,751 860,737,315
48,863,000
48,863,000
-
-
-
-
-
-
-
Bata Shoe Company (Bangladesh) Limited
Taka
998,620
998,620
998,620
-
-
-
-
-
-
-
reserve
special
Non-
Taka
60,631,183
60,631,183
60,631,183
-
-
-
-
-
-
-
Taka
136,800,000
136,800,000
-
-
-
-
-
-
-
capital
Share
Taka
34 35
2014
Bata Shoe Company (Bangladesh) Limited
notes to the financial statements as at and for the year ended 31 December 2014
1. Reporting entity
Bata shoe company (Bangladesh) limited (hereinafter referred to as "Bata"/"the company") is a public company
limited by shares. it was incorporated in Bangladesh in 1972 under the companies act 1913. the address of the
registered office of the company is tongi, Gazipur, Bangladesh. the company is one of the operating companies of
worldwide Bata shoe organization (Bso). the shares in the company are listed in both dhaka stock exchange
(dse) and chittagong stock exchange (cse) and mostly held by Bafin (nederland) B.v. the financial year of the
company covers one year from 1 January to 31 december.
the company is mainly engaged in manufacturing and marketing of leather, rubber, plastic, canvas footwear, hosiery
and accessories items. manufacturing plants of the company are situated at tongi and dhamrai.
2. Basis of preparation
these financial statements have been prepared in accordance with Bangladesh financial reporting standards
(Bfrs), the companies act 1994, the securities and exchange rules 1987 and other applicable laws and
regulations.
these financial statements were authorised for issue by the Board of directors at its 221st meeting held on 27 april
2015.
these financial statements have been prepared on historical cost basis except for land at tongi in the statement of
financial position which was revalued in 1979.
these financial statements are presented in Bangladesh taka (taka/tk) which is both functional and presentational
currency of the company. the amounts in these financial statements have been rounded off to the nearest taka
except for the amounts presented in revenue in note 19, segment reporting in note 35, related party transactions in
note 36.1 & 36.2 and operating lease payments disclosure in note 37 which have been rounded off to the nearest
thousand taka and credit facilities available as at 31 december in note 10.2 have been rounded off to the nearest
million taka.
the preparation of these financial statements in conformity with Bfrss requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. actual results may differ from these estimates.
estimates and underlying assumptions are reviewed on an ongoing basis. revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.
information about critical judgements in applying accounting policies that have the most significant effect on the
amounts recognised in the financial statements is included in the following notes:
note 7 inventories
36 37
2014
the company initially recognises loans and receivables and deposits on the date that they are originated. all other 3.2.2 Non-derivative financial liabilities
financial assets are recognised initially on the trade date, which is the date the company becomes a party to the the company recognises all financial liabilities on the trade date which is the date the company becomes a party
contractual provisions of the instrument. to the contractual provisions of the instrument.
the company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, the company derecognises a financial liability when its contractual obligations are discharged, cancelled or
or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which expired. financial liabilities comprise trade and other creditors only.
substantially all the risks and rewards of ownership of the financial asset are transferred. 3.2.2.1 Trade and other creditors
financial assets and liabilities are offset and the net amount presented in the statement of financial position when, the company recognises a financial liability initially at fair value less any directly attributable transaction costs.
and only when, the company has a legal right to offset the amounts and intends either to settle on a net basis or subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective
to realise the asset and settle the liability simultaneously. interest method.
the company classifies non-derivative financial assets into the following categories: financial assets at fair value 3.3 Property, plant and equipment
through profit or loss, held-to-maturity financial assets, loans and receivables and available for- sale financial 3.3.1 Recognition and measurement
assets.
items of property, plant and equipment excluding land are measured at cost less accumulated depreciation and
3.2.1.1 Financial assets at fair value through profit or loss accumulated impairment losses. land is measured at amount revalued in 1979.
a financial asset is classified as at fair value through profit or loss if it is classified as held for trading or is cost includes expenditures that are directly attributable to the acquisition of assets. the cost of self-constructed
designated as such on initial recognition. attributable transaction costs are recognised in profit or loss as incurred. assets includes the following:
financial assets at fair value through profit or loss are measured at fair value and changes therein, which takes - the cost of materials and direct labour;
into account any dividend income, are recognised in profit or loss. - any other cost directly attributable to bringing the asset to a working condition for the intended use;
3.2.1.2 Held-to-maturity financial assets - when the company has an obligation to remove the asset or restore the site, an estimate of the costs of
if the company has the positive intent and ability to hold debt securities to maturity, then such financial assets are dismantling and removing the items and restoring the site on which they are located; and
classified as held to maturity. Held-to-maturity financial assets are recognised initially at fair value plus any directly - capitalised borrowing costs.
attributable transaction costs. subsequent to initial recognition, held-to-maturity financial assets are measured at when parts of an item of property, plant and equipment have different useful lives, they are accounted for as
amortised cost using the effective interest method, less any impairment losses. separate items (major components) of property, plant and equipment.
3.2.1.3 Loans and receivables any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the
loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss.
market. such assets are recognised initially at fair value plus any directly attributable transaction costs. 3.3.2 Subsequent costs
subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with
interest method, less any impairment losses. the expenditure will flow to the company. ongoing repairs and maintenance is expensed as incurred.
38 39
2014
40 41
2014
finance expense comprises interest expense on overdraft, finance lease and interest on shop managers account disposals/ adjustment written down
particulars as at additions transfers as at as at charged for as at value as at
held with the company and foreign exchange loss on translation of foreign currency. all finance expenses are 1 January during during 31 december 1 January for disposals/ 31 december 31 december
recognised in the statement of comprehensive income. 2014 the year the year 2014 2014 the year transfers 2014 2014
3.12 Tax taka taka taka taka taka taka taka taka taka
income tax expense comprises current and deferred tax. income tax expense is recognised in the statement of land 1 86,057,856 - - 86,057,856 - - - - 86,057,856
comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is Building 2 377,877,942 6,201,709 - 384,079,651 181,131,213 7,915,712 - 189,046,925 195,032,726
recognised in equity.
plant and machinery 738,770,886 16,119,562 - 754,890,448 442,684,864 33,102,947 - 475,787,811 279,102,637
3.12.1 Current tax
current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively motor vehicles 25,008,751 - (4,257,655) 20,751,096 21,376,683 1,408,389 (4,257,655) 18,527,417 2,223,679
enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Bata qualifies as a
"publicly traded company"; hence the applicable tax rate is 27.50 %. it enjoys 10% rebate on income tax payable furniture, fixtures
and equipment 611,965,123 156,763,620 (2,307,471) 766,421,272 261,943,193 70,788,228 (1,998,025) 330,733,396 435,687,876
for declaring dividend at more than 30% of paid up capital.
1,839,680,558 179,084,891 (6,565,126) 2,012,200,323 907,135,953 113,215,276 (6,255,680) 1,014,095,549 998,104,774
3.12.2 Deferred tax
deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities 4(b) Year 2013
for financial reporting purposes and the amounts used for taxation purposes. deferred tax is measured at the tax cost/valuation depreciation
rates that are expected to be applied to the temporary differences when they are reversed, based on the laws that disposals/ adjustment written down
have been enacted or substantively enacted by the reporting date. deferred tax assets and liabilities are offset if particulars as at additions transfers as at as at charged for as at value as at
there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied 1 January during during 31 december 1 January for disposals/ 31 december 31 december
2013 the year the year 2013 2013 the year transfers 2013 2013
by the same tax authority on the same taxable entity.
taka taka taka taka taka taka taka taka taka
a deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the land 1 86,057,856 - - 86,057,856 - - - - 86,057,856
extent that it is probable that future taxable profits will be available against which they can be utilised. deferred tax
assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related Building 2 376,199,684 1,678,258 - 377,877,942 173,370,544 7,760,669 - 181,131,213 196,746,729
tax benefit will be realised. plant and machinery 715,581,267 34,001,788 (10,812,169) 738,770,886 420,509,650 32,483,177 (10,307,963) 442,684,864 296,086,022
3.13 Earnings per share motor vehicles 25,008,751 - - 25,008,751 19,648,227 1,728,456 - 21,376,683 3,632,068
the company presents basic and diluted (when dilution is applicable) earnings per share (eps) for its ordinary
furniture, fixtures
shares. Basic eps is calculated by dividing the profit or loss attributable to ordinary shareholders of the company and equipment 501,033,308 116,959,715 (6,027,900) 611,965,123 210,026,312 57,719,700 (5,802,819) 261,943,193 350,021,930
with the weighted average number of ordinary shares outstanding during the period, adjusted for the effect of change 1,703,880,866 152,639,761 (16,840,069) 1,839,680,558 823,554,733 99,692,002 (16,110,782) 907,135,953 932,544,605
in number of shares for bonus issue, share split and reverse split. diluted eps is determined by adjusting the profit
or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, for
the effects of all dilutive potential ordinary shares. However, dilution of eps is not applicable for these financial 1 land of tongi factory was revalued by tk. 60,631,183 in 1979.
statements as there was no dilutive potential ordinary shares during the relevant periods. 2 Building includes properties at 24 Bangabandhu avenue, dhaka which were purchased in 1985 from the Government of Bangladesh at a cost of tk.
3.14 Segment reporting 5,344,417. sale deed is yet to be executed.
an operating segment is a component of the company that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the 4.1 Depreciation charged to:
companys other components. all operating segments operating results are reviewed regularly by the companys 2014 2013
management to make decisions about resources to be allocated to the segment and to assess its performance, and Taka Taka
for which discrete financial information is available.
segment results that are reported to the management include items directly attributable to a segment as well as cost of goods manufactured (note 20.1) 32,565,175 32,168,316
those that can be allocated on a reasonable basis.
administration, selling and distribution expenses (note 22) 80,650,101 67,523,686
3.15 Duty drawback
duty drawback claimed on export sales is adjusted against cost of imported raw materials. 113,215,276 99,692,002
3.16 Sales proceeds from wastage, scrap etc. 4.2 Disposal of property, plant and equipment
sales of empty drum of chemicals, split leather and other wastage of materials have been adjusted with cost of raw
materials consumed. income from non-operating activities is recognised as other income. original accumulated Book sales mode of
particulars cost depreciation value value disposal purchaser
3.17 Workers' profit participation fund (WPPF)
taka taka taka taka
the company provides 5% of its profit before charging such expense as wppf in accordance with "the Bangladesh
machinery 4,257,655 4,257,655 - 486,238 auction various parties
labour act 2006".
computer 414,086 282,781 131,305 282,624 negotiations insurance claim / various parties
3.18 Events after the reporting period
events after the reporting period which provide additional information about the company's position at the date of furniture and
statement of financial position or those that indicate the going concern assumption is not appropriate are reflected in equipment in shops 1,893,385 1,715,244 178,141 128,793 auction various parties
the financial statements. events after the reporting period that are not adjusting events are disclosed in the notes 6,565,126 6,255,680 309,446 897,655
when material.
42 43
2014
provision for staff gratuity (note 13) (162,343,000) - (162,343,000) 8.1 Provision for doubtful debts
provision for bad and doubtful debts (note 8.1) (20,973,694) - (20,973,694)
Balance as at 1 January - -
reserve against personal accounts (27,467,293) - (27,467,293)
net taxable temporary difference 2,902,527 provision made during the year 20,973,694 -
44 45
2014
accounts receivable are aged as below: 10. Cash and cash equivalents
2014 2013
2014 2013
Below Over Below Over
six months six months six months six months Taka Taka
Taka Taka Taka Taka cash balances:
on hand 1,817 16,325
export customers - non Bso companies 1,458,871 - 14,961,782 -
in transit:
export customers - Bso companies 8,053,327 - 5,928,296 -
from stores 33,107,436 35,328,276
receivables from dealers 426,052,762 20,707,984 375,027,081 -
from depots 37,767,000 490,000
receivables from institutional sale 18,677,872 265,710 38,303,981 - from institutions 4,986,350 47,403,691
interest receivable 606,527 - - -
vat claims 586,664 - 249,379 - Balances with banks in:
Joint venture commission receivable 36,094 - 589,838 - current accounts
duty draw back claim receivable - - 596,876 - in taka (192,689,653) (109,532,576)
455,472,117 20,973,694 435,657,233 - in usd 2,885,844 19,420,791
fixed deposits 200,000,000 6,000,000
8.2 Debts due by directors, officers and other related parties short term deposits 206,338,006 258,313,203
as at 31 december 2014, accounts receivables does not include any amount due by: 216,534,197 174,201,418
(a) directors and other officers of the company; 292,396,800 257,439,710
(b) firms or private limited companies respectively in which any director of the company is a partner, director or member, 10.1 Book overdrafts
other than those disclosed in note 34.1; and the current accounts include book overdrafts (i.e. cheque outstanding in excess of deposits) from eastern Bank
(c) companies under the same management. limited and HsBc as follows:
2014 2013
2014 2013 Taka Taka
Taka Taka
eastern Bank limited 200,021,799 122,976,414
9. Advances, deposits and prepayments
HsBc 1,131,093 3,569,506
advances (considered good) to:
201,152,892 126,545,920
agents and employees 15,378,295 2,729,173
suppliers against materials and services 6,695,559 8,931,150 10.2 Credit facilities available as at 31 December
22,073,854 11,660,323 the company enjoys both funded and non funded short term working capital facilities with two banks. the non funded
facilities include letters of credit (lc), letters of Guarantee, packing credit, ldBp, fdBp and foreign exchange
advance income tax 179,048,804 148,413,771
forward contracts (fx forward). the funded facilities include overdraft facility, short term loan and import loan. the
security and other deposits 485,239,534 441,512,793 aggregate amount of available short term working capital facilities is tk 1,000 million (2013: tk 1,000 million) of which
prepayments to landlords (current portion - note 9.1) 112,505,946 101,400,767 non funded limit is tk 700 million (2013: tk 700 million) and funded limit is tk 300 million (2013: tk 300 million).
798,868,138 702,987,654
details of the total facilities are stated below:
(a) HSBC Bank
9.1 Prepayments of rent
i) l/c facility - tk 300 million (2013: tk 300 million).
prepayments to landlords 249,417,850 215,365,767 ii) overdraft / short term loan facility - tk 100 million (2013: tk 100 million).
less: current portion (note 9) 112,505,946 101,400,767
non-current portion 136,911,904 113,965,000 (b) EBL Bank
i) l/c facility - tk 394 million (2013: tk 394 million).
9.2 Loans and advances to directors, officers and other related parties ii) overdraft facility / short term loan facility - tk 200 million (2013: tk 200 million).
other than those mentioned in the note above, there were no loans or advances to: iii) letters of Guarantee - tk. 6 million (2013: tk 6 million)
(a directors of the company; 2014 2013
(b) firms or private limited companies respectively in which any director of the company is a partner, director (Tk in million) (Tk in million)
or member; and total credit facilities available 1,000 1,000
(c) companies under the same management. credit facilities availed 110 248
46 47
2014
2,850,723 ordinary shares of tk 10 each issued for cash 28,507,230 28,507,230 12.1 Non-distributable special reserve
this represents 90% of the cumulative post-tax profit in respect of certain categories of income up to 1992 as defined
and directed by Bangladesh Bank. since 1993, the requirement for continuing to create such special reserve is
10,829,277 ordinary shares (including 7,202,400 bonus shares) applicable only to the profit on sale of immovable assets such as land, buildings, etc.
of tk 10 each issued for consideration other than cash 108,292,770 108,292,770
12.2 Unappropriated profit
136,800,000 136,800,000
2014 2013
Taka Taka
the shares are listed both in the dhaka stock exchange limited and chittagong stock exchange limited and quoted Balance as at 1 January 2,009,391,340 1,606,707,776
at tk 1,172.10 (2013: tk 690.00) and tk 1,143.80 (2013: tk 691.00) per share at 31 december 2014 respectively. profit for the year 700,670,101 813,083,564
percentage of shareholdings : earlier year tax adjustment (3,290,351) -
interim dividend (239,400,000) (266,760,000)
2014 2013
final dividend (143,640,000) (143,640,000)
% Taka % Taka 2,323,731,090 2,009,391,340
Bafin (nederland) B.v 70.00 95,760,000 70.00 95,760,000 13. Deferred liability
Balance as at 1 January 134,506,744 123,817,664
non-resident shareholders 8.05 11,012,540 7.47 10,216,680 add: provision made / (reversed) during the year 38,142,033 34,595,523
local shareholders 21.95 30,027,460 22.53 30,823,320 172,648,777 158,413,187
less: paid during the year 10,305,777 23,906,443
100.00 136,800,000 100.00 136,800,000
Balance as at 31 december 162,343,000 134,506,744
classification of shareholders by range:
deferred liability represents provision for staff gratuity up to 31 december 2014.
Shareholder's range Number of shareholders Number of shares 14. Creditors for goods
payable to local suppliers 508,452,080 450,535,227
2014 2013 2014 2013 payable to Bso companies 17,623,868 10,417,995
less than 501 shares 5,195 5,562 683,221 683,221 526,075,948 460,953,222
501 to 5,000 shares 375 432 653,626 653,626 15. Creditors for expenses
payable to local suppliers 74,952,545 43,945,078
5,001 to 10,000 shares 24 38 277,540 277,540 payable to Bso companies 271,847,898 399,679,815
10,001 to 20,000 shares 27 21 310,597 310,597 346,800,443 443,624,893
20,001 to 30,000 shares 11 5 122,768 122,768 16. Creditors for other finance
workers' profit participation fund (note 25) 53,574,742 60,699,135
30,001 to 40,000 shares 6 6 212,500 212,500 personal accounts of employees and agents 78,983,164 77,488,548
40,001 to 50,000 shares 1 3 143,100 143,100 security and other deposits 25,544,500 24,794,500
provident fund 9,168,418 6,983,994
50,001 to 100,000 shares 2 4 280,500 280,500 tax deducted at source 47,441,190 60,933,617
pension fund 1,942,427 1,992,092
100,001 to 1,000,000 shares 7 4 1,420,148 1,420,148 vat deducted at source 2,972,806 5,318,418
over 1,000,000 shares 1 1 9,576,000 9,576,000 salary and wages payable 21,321,732 20,469,098
others 21,236,548 14,660,867
5,649 6,076 13,680,000 13,680,000 262,185,527 273,340,269
48 49
2014
local
difference in work in process:
shoes pair 29,050 7,673,652 30,885 7,536,145
Hosiery & accessories 313,467 255,830 work in process as at 1 January 43,306,956 61,989,523
work in process as at 31 december 63,491,401 43,306,956
export 89,876 87,000 (20,184,445) 18,682,567
8,076,995 7,878,975 cost of goods manufactured 3,795,906,908 4,160,006,319
50 51
2014
856,585,188
2,052,023,262
2,908,608,450
3,175,668,229
repairs and maintenance amounting to tk 64,774,558 includes tk 39,061,847 (including c&f value of us$ 477,120 and eur 18,120 of imported items) representing
consumption 2014 2013
Notes Taka Taka
(taka)
value
22,884
7,033
29,917
2013
108,958,065
222,222,823
331,180,888
391,028,070
figures in '000
closing stock
cost of materials consumed is 29% imported and 71% locally purchased (2013: 32% imported and 68% locally purchased).
travelling expenses 77,962,266 64,177,638
Bank charges 1,603,264 1,518,053
19,742
7,060
26,802
repairs and maintenance 70,465,915 67,779,048
2014
stationery 17,982,488 18,859,686
duty drawback of tk. 1,353,308 claimed on export sales have been adjusted against cost of raw materials.
2,009,801,074
2,848,761,268
3,147,328,613
26,487
9,504
35,991
2013
purchase
9,954
36,441
2014
126,583,059
264,445,011
391,028,070
419,367,686
imported
dhamrai
General charges comprises of provision for bad debt tk 20,973,694 (note: 8.1).
tongi
2014
2013
with global reporting, tax certification and services regarding assessments/appeals and advisory services.
52 53
2014
126,008,026 109,603,719 weighted average number of ordinary shares outstanding during the year 13,680,000 13,680,000
28. Contribution to employees' provident fund and pension fund Basic earnings per share (eps) 51.22 59.44
during the year the company contributed the following amounts to the employees' provident fund and pension fund:
32.2 Diluted earning per share
provident fund: no diluted earnings per share is required to be calculated for the year as there was no scope for dilution during
managers 6,597,914 6,176,487
these years.
officers & supervisors 10,421,968 9,396,078
workers 11,027,469 10,415,714
28,047,351 25,988,279 33. Number of employees
pension fund 8,306,158 7,616,378 the number of employees for the whole year or part thereof who received a total remuneration of tk 36,000 and
36,353,509 33,604,657 above was 1,816 (2013: 1,464).
54 55
2014
56 57
58
34.2 Liquidity risk
liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. the company's approach to managing liquidity (cash and cash equivalents)
is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the company's reputation. typically, the company ensures that it has sufficient cash and cash equivalents to meet expected operational expenses,
including financial obligations through preparation of the cash flow forecast, based on time line of payment of financial obligations and accordingly arrange for sufficient liquidity/fund
to make the expected payments within due dates. moreover, the company has short term credit facilities with scheduled commercial banks to ensure payment of obligation in the
event that there is insufficient cash to make the required payment. the requirement is determined in advance through cash flow projections and credit lines with banks are negotiated
accordingly.
As at 31 December 2014
exposure to liquidity risk in respect of the company's financial statements at 31 december 2014 does not vary significantly from above.
As at 31 December 2013
Accounts payable
exposure to liquidity risk in respect of the company's financial statements at 31 december 2013 does not vary significantly from above.
2014
59
2014
trade and other payables for expenses (2,443,418) (1,890,000) (86,667) (4,330,133) (1,663,200) (66,000) Liabilities carried at amortised costs
total (2,443,418) (1,890,000) (86,667) (4,330,133) (1,663,200) (66,000) creditors for goods 526,075,948 526,075,948 460,953,222 460,953,222
net exposure (2,282,472) (1,890,000) (86,667) (3,804,097) (1,663,200) (66,000)
creditors for expenses 346,800,443 346,800,443 443,624,893 443,624,893
creditors for other finance 262,185,527 262,185,527 273,340,267 273,340,267
payable to other entities represents payable for Global footwear service fees, it fees etc. accrued expenses 382,765,944 382,765,944 375,921,784 375,921,784
exposure to currency risk as at 31 december 2014 in respect of the financial statements does not vary from above. the
company has a foreign exchange gain amounting to tk. 6,886,918 during the year ended 31 december 2014.
the following significant exchange rates are applied during the year: 35. Segment reporting
the company has two operating segments, domestic and unallocated, which are the company's strategic divisions. they
exchange rate as at
are managed separately because they require different technology and marketing strategies. for each of the strategic
31 dec 2014 31 dec 2013
divisions, the company's management reviews internal management reports at least on a monthly basis. of these two,
taka taka
only domestic segment is reportable. the following summary describes the operations in the company's reportable
us dollar 77.26 77.29 segments:
singapore dollar 58.46 61.22
euro (eur) 93.91 106.46 Domestic this segment is mainly engaged in manufacturing and marketing of leather, rubber, plastic and canvas
footwear, hosiery and accessories in domestic market.
ii) Foreign exchange rate sensitivity analysis for foreign currency expenditures
2014 2013
a strengthening or weakening of the taka, as indicated below, against the usd, sGd and eur at 31 december would have
increased/(decreased) equity and profit or loss by the amounts shown below. this analysis is based on foreign currency particulars reportable business segment reportable business segment
exchange rate variances that the company considered to be reasonably possible at the reporting date. the analysis assumes domestic unallocated total domestic unallocated total
that all other variables, in particular interest rates, remain constant. the analysis is performed on the same basis for 2014, albeit
Taka 000 Taka 000 Taka 000 Taka 000 Taka 000 Taka 000
that the reasonably possible foreign exchange rate variances were different, as indicated below:
strengthening weakening
Revenue 7,987,119 89,876 8,076,995 7,791,975 87,000 7,878,975
profit or loss profit or loss
taka taka cost of sales (4,884,620) (60,867) (4,945,487) (4,852,040) (5,722) (4,857,762)
At 31 December 2014 Gross profit 3,102,499 29,009 3,131,508 2,939,935 81,278 3,021,213
usd (0.04 percent movement) (70,538) 70,538 exchange gain/(loss) - 6,887 6,887 - 4,351 4,351
sGd (4.51 percent movement) (4,983,072) 4,983,072 other income - 20,222 20,222 - 18,425 18,425
eur (11.79 percent movement) (959,576) 959,576 administrative, selling and distribution exp. (1,546,326) (549,692) (2,096,018) (1,321,424) (515,896) (1,837,320)
Reportable segment result 1,556,173 (493,574) 1,062,599 1,618,511 (411,842) 1,206,669
At 31 December 2013
usd (3 percent movement) (8,820,560) 8,820,560 Segment assets and liabilities
sGd (6 percent movement) (6,109,266) 6,109,266 the necessary information regarding assets and liabilities of operating segments are not separable and individually identifiable
eur (1 percent movement) (70,264) 70,264 for this purpose. for this reason the assets and liabilities of the respective segments have not been presented here.
60 61
2014
36. Related party disclosures 38. Capital expenditure and financial commitment
during the year ended 31 december 2014, company entered into a number of transactions with related parties / there were no capital expenditure and financial commitments as at 31 december 2014 (2013: nil)
associated enterprises in the normal course of business. relationship with related parties / associated enterprises,
39. Contingent liabilities
nature of these transactions and amount thereof have been set out below in accordance with the provisions of Bas
24: related party disclosures. there are contingent liabilities on account of unresolved disputed corporate tax assessments and vat claims by the
authority aggregating to tk. 480,314,000 (2013: tk 460,620,000). considering the merits of the cases, it has not been
deemed necessary to make provisions for all such disputed claims.
36.1 Related party transactions
2014 2013 there is also contingent liability in respect of outstanding letters of credit of tk. 104 million (2013: tk 243 million) and letter
of guarantee of tk. 5.7 million (2013: tk 5.7 million).
Taka 000 Taka 000
relationship with company nature of transaction 40. Other disclosures
40.1 Comparatives
Holding company dividend payment (241,315) (258,552) previous year's figures have been rearranged, wherever necessary, to conform to current year's presentation.
62 63
Exhibit - I
Bata Shoe Company (Bangladesh) Limited
statement of profit or loss and other comprehensive income for the year
ended 31 December 2014
2014 2013
Manufacturing Trading Total Total
Taka Taka Taka Taka
64 65
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2014
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66 67
form of proxy
please quote
Shareholder's Folio / BO No. No. of Shares held
i/we
of
being shareholder(s) of BATA SHOE COMPANY (BANGLADESH) LIMITED, entitled to vote hereby appoint
mr./ms.
as my/our proxy to attend and vote for me/us and on my/our behalf at the 43rd annual General meeting of the
company to be held on thursday 25 June 2015 and any adjournment thereof and poll that may be taken in
consequenced thereof.
revenue stamp
of tk. 20.00
(signature of shareholder (s) must be in accordance with specimen signature with the company.)
ATTENDANCE
i/we hereby record my/our presence at the 43rd annual General meeting of Bata Shoe Company
(Bangladesh) Limited at dhamrai factory, dhaka on thursday 25 June 2015 at 10:30 a.m.
68 37