A PROJECT REPORT ON COMPARATIVE PROFITABILITY ANALYSIS

OF KHADIMS & BATA

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 PREPARED BY
HITEN PRAKASHBHAI DUBE.
ENROLLMENT NO.: 01010118669

ACADEMIC YEAR
2020-21

GUIDED BY
MRS. KHUSHBOO MALDE

FOR THE PARTIAL FULFILLMENT OF B.B.A. SEM-VI

SUBMITTED TO
SAURASHTRA UNIVERSITY RAJKOT

SHRI G.H. GOSRANI COMMERCE (ENG. MED) AND

SHRI D.D. NAGDA B.B.A COLLEGE – JAMNAGAR

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 DECLARATION

I, HITEN PRAKASHBHAI DUBE, a student of B.B.A. SEM VI of Shri G.H.G. Commerce

and Shri D.D. Nagda B.B.A. College, Jamnagar hereby declare that this project report has been
successfully carried out under guidance of

MRS. KHUSHBOO MALDE.

This project is based on the financial research report on KHADIMS & BATA.

I am further declaring that this project report has not been previously submitted to any college or
university.

DATE: SIGNATURE:

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 ACKNOWLEDGEMENT

I take this opportunity to put on record my acknowledgement to everyone who has been of a
great help in preparation of this project report.

I would start my thank you note with Saurashtra University for incorporating the project study in
curriculum, Shri G.H.G. Commerce and Shri D.D. Nagda B.B.A. College, Jamnagar for
providing me platform, MRS. SNEHAL KOTAK PALAN for inspiration, MRS.
KHUSHBOO MALDE my project guide for continuous support and guidance.

I would also like to thank my teachers, parents and friends for helping me out in carrying this
project preparation.

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 -:KHADIM INDIA LIMITED. COMPANY PROFILE:-

Type :- Public company

Traded as: - KHADIM

BSE: 540775

Industry :- Footwear

Founded :- 1981

Founder :- Satya Prasad Roy Burman

Headquarters: - Kolkata, West Bengal, India

Key people :- Siddhartha Roy Burman (Chairman and MD)

Website :- www.khadims.com

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 -:Bata Corporation COMPANY PROFILE:-

Industry:- Shoemaking

Founded:- 24 August 1894; 126 years ago

Founder:- Thomas Bata

Headquarters:- Lausanne, Switzerland

Area served:- Worldwide

Key people:- Thomas George Bata (Chairman)

Sandeep Kataria (CEO)

Products:- Footwear and accessories

Owner:- Bata family

Website:- bata.com

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 INDEX

SR.NO TITLE PG NO.

1 GENERAL INFORMATION. 9

2 INTRODUCTION OF INDUSTRY. 10

3 INTRODUCTION OF PRODUCT. 11

4 INTRODUCTION OF COMPANY. 13

5 HISTORY AND DEVELOPMENT. 15

6 PRODUCTION DEPARTMENT. 19

7 MARKETING DEPARTMENT. 21

8 HUMAN RESOURCE DEPARTMENT. 24

9 FINANCE DEPARTMENT. 26

10 RESEARCH METHODOLOGY. 27

11 INTRODUCTION. 27

12 RATIONALE OF STUDY. 28

13 OBJECTIVES. 29

14 SOURCE OF DATA. 30

15 METHODOLOGY. 31

16 FINDING OF RATIO ANALYSIS. 32

17 SUMMARY OF ALL RATIOS. 48

18 CONCLUSION. 49

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 19 APENDIX. 50

20 BIBLIOGRAPHY. 59

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 General Information

 Introduction of Footwear Industries :-

1) Khadim India Limited.

Khadim India Limited, doing business as Khadim's, is an Indian footwear company based
in Kolkata. It is involved in the manufacture and retail of footwear products and accessories,
primarily in eastern and southern parts of India.

Khadim's traces its roots to KM Khadim& Company, a footwear store in Chitpur,

Kolkata, which was acquired by Satya Prasad Roy Burman in 1965. Khadim's was incorporated
in 1981 and remained a wholesale business until 1993 when it opened its first retail store in
Kolkata. The company expanded operations in east and northeast India, before opening its first
store in south India in 2000.

At the time of its initial public offer in 2017, the company had 853 retail stores, and
ranked second on the list of footwear companies by number of store locations in India. It has two
manufacturing locations, in Kolkata and Kanpur.

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2) Bata Company.

Bata Company is a Czech multinational footwear and fashion accessory manufacturer

and retailer, founded in the town of Zlín, today in the Czech Republic. After World War II, its
factories in socialist states were nationalized, while its branches in capitalist states remained
family-owned. It is now based in Lausanne, Switzerland. The principal subsidiaries are Bata
Europe , Bata North America , Bata Asia-Pacific-Africa and Bata Latin America .

A family-owned business, the company is organized into three business units: Bata, Bata
Industrious and AW Lab . The company is the world's leading shoemaker by volume, and it has
a retail presence of over 5,300 shops in more than 70 countries and production facilities in 18
countries.

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 Introduction to Products :-

1) Khadim India Limited.

Khadim India Limited is one of the leading footwear brands in India with a two-pronged
focus on retail and distribution of footwear.The Company also has the largest footwear retail
franchisee network in India.

Khadim makes different types of footwear products like heels,sportsshoes,casual shoes

and many more.

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 2) Bata Company.

MEN Sneakers Oxfords & Derbies Loafers &Mocassins Athleisure Chappals/Flip-Flops

Lace-ups Formal Casual Boots Sandals.KIDS Girls Infant School Boys.

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 Introduction to Company

1) Khadim India Limited.

Khadim India Limited, doing business as Khadim's, is an Indian footwear company based
in Kolkata. ... Khadim's was incorporated in 1981 and remained a wholesale business until 1993
when it opened its first retail store in Kolkata.

At the time of its initial public offer in 2017, the company had 853 retail stores, and ranked
second on the list of footwear companies by number of store locations in India It has two
manufacturing locations, in Kolkata and Kanpur.

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 2). BATA :-

Bata Corporation is a Czech multinational footwear and fashion accessory

manufacturer and retailer, founded in the town of Zlín, today in the Czech Republic. After World
War II, its factories in socialist states were nationalized, while its branches in capitalist states
remained family-owned. It is now based in Lausanne, Switzerland. The principal subsidiaries are
Bata Europe , Bata North America , Bata Asia-Pacific-Africa and Bata Latin America.

A family-owned business, the company is organized into three business units: Bata, Bata
Industrial and AW Lab . The company is the world's leading shoemaker by volume, and it has a
retail presence of over 5,300 shops in more than 70 countries and production facilities in 18
countries.

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 History and Development

1)Khadim India limited .

The Company was originally incorporated on December 3, 1981 as S.N. Footwear

Industries Private Limited, a private limited company under the Companies Act, 1956, with the
RoC. Thereafter, the name of the Company was changed to Khadim Chain Stores Private
Limited to align the name of the Company with the brand, pursuant to the resolution of the
shareholders dated November 10, 1997 and a fresh certificate of incorporation consequent on
change of name dated April 17, 1998 was accordingly issued by the RoC. The name of the
Company was changed to Khadim Chain Stores Limited, due to conversion into a public limited
company pursuant to resolution of the shareholders dated April 12, 2005 and a fresh certificate of
incorporation consequent on change of name dated June 24, 2005 was accordingly issued by the
RoC. Subsequently, the name of the Company was changed to Khadim India Limited, to reflect
the comprehensive nature of the business conducted by the Company, and pursuant to the
resolution of the shareholders dated August 8, 2005, and a fresh certificate of incorporation
consequent on change of name dated August 26, 2005 was accordingly issued by the RoC. Major
Events and Milestones of the Company

1981 - Incorporated as a private limited company. - the Company acquired and took over
the business of M/s S.N. Industries as a going concern with all its assets and liabilities.

1993 - Commenced the retail business through Coos for footwear products.

1999 - Commenced retail operations in South India through four owned retail outlets with
two in Chennai and one apiece in Bengaluru and Secunderabad

2002 - Commenced manufacturing operations for footwear and leather products at the
manufacturing facility at Kasba Industrial Estate, West Bengal.

2005 - Accredited with ISO 9001:2000 certification with respect to the manufacturing
facility at Kasba Industrial Estate, West Bengal.

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 2005 - Merger of five entities with the Company pursuant to order of the Calcutta High
Court dated June 22, 2005.

2010 - Commenced distribution operations at the central distribution centre at Bantala,

West Bengal.

2013 - Accredited with ISO 9001: 2008 certification with respect to the manufacturing
facility at Kasba Industrial Estate, West Bengal.

2014 - Commenced e-commerce retailing operations through the Company e-commerce

website, while also utilising online market place(s)

2015 - Expanded retail business to include the ‘shop-in-shop retailing model.

2016 - Accredited with ISO 9001:2015 certification with respect to the manufacturing
facility at Kasba Industrial Estate, West Bengal. Awards, Accreditations and Accolades received
by the Company.

2010 - the Company has been ranked highest on parameters such as “top of mind recall”,
“total awareness”, “attractiveness of design”, “brand power” , as per Brandwatch Bengal
published by AnandabazarPatrika.

2011 - the Company was awarded the “Bengal Best ” by Brandwatch Bengal, an
initiative of AnandabazarPatrika Group - the Company was awarded the “Most Admired
Footwear Retailer , 2011” at the East India Retail Summit, 2011.

2012 - the Company was awarded the “Most Admired Footwear Retailer , 2012” in the
East India Retail Summit,

2013 - the Company was awarded the “Most Attractive Footwear Brand- Retail
footwear” at the India Most Attractive Brands Awards, 2013 2014 - the Company was awarded
the “IMAGES Most Admired Footwear Retailer of the Year ” award at the Images Shoes &
Accessories Awards,

2014. 2015 - the Company awarded the “Most Preferred Footwear Brand of the Year” at
the North-East Consumer Awards 2014 conducted in Janua.

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2) Bata Company.

Bata India Ltd is the largest footwear retailer and the leader in the footwear industry in
India. The company is engaged in the business of manufacturing and trading of footwear and
accessories through their retail and wholesale network. Their products include leather footwear
rubber/canvas footwear and plastic footwear. They are having their production facilities at
Batanagar in West Bengal Patna and Hathidah in Bihar Faridabad in Haryana Bangalore in
Karnataka and Hosur in Tamilnadu. Their wholly owned subsidiaries include Bata Properties Ltd
Coastal Commercial & Exim Ltd. and Way Finders Brands Limited.

Bata India Ltd was incorporated in the year 1931 as Bata Shoe Company Pvt Ltd in
Konngar West Bengal which was then shifted to Batanagar. Batanagar was the first
manufacturing facility in the Indian shoe industry to receive the ISO 9001 certification. The
company went public in 1973. They changed their name to Bata India Ltd. Over the years the
company has established a leadership position in the footwear industry and is easily the most
trusted name in branded footwear.The company has entered into an agreement with Bata Ltd of
Toronto Canada for supply of technical know-how and services such as Footwear technology
and design brand development product development retailing and information systems for a
period of ten years from January 1 2001.The company bagged the Retailer of the year award for
the year 2006 in the footwear category as a part of the Reid and Taylor Award for Retail
Excellence which was presented during the Indian Retail Summit 2006. They received the
country's most coveted Retail Award at the 4th Images Retail Awards (IRA) 2007.

The company was honoured with Most Admired Brand of the year 2006-07 in Footwear
category. They were rated as one of the Top 10 super brands in India and awarded Super Brands
Award on April 12 2007. In February 21 2008 they were given AMITY Corporate Excellence
Award 2008. This award was given for Bata's excellent performance and retail growth during
2007.The company entered into a joint development agreement with Calcutta Metropolitan
Group Ltd for developing around 262 acres of land in Batanagar. The company formed a special
purpose vehicle called Riverbank Holdings Pvt Ltd.

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 The development of 262 acres was split into two parts IT SEZ for 25 acres developed by
Riverbank Holdings Pvt Ltd and the remaining 237 acres will be done by the new company
Riverbank Developers PvtLtd.In the year 2009 the company opened 69 new Bata stores which
are all in large format with an average of over 3000 square feet. They also renovated 40 existing
stores and closed down 73 stores which were in small format and unviable. In the year 2010 the
company won the 'Consumer Awards 2010' as 'India's Most Preferred Retailer' given by CNBC
Awaaz. The company opened 108 new large format stores across all major towns in India.

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 Production Department

1) Khadim India Limited.

A production department is a group of functions within a business that is responsible for

the manufacture of goods. ... The production department can be the largest organization within a
business. It may employee mechanics, machine setup specialists, maintenance personnel, and
machine operators.

Khadim India Limited is one of the leading footwear brands in India, with a two-pronged
focus on retail and distribution of footwear. The Company is also engaged in the business of
institutional sales and export of footwear. The Company is promoted by Siddhartha Roy Burman.

2)Bata Company.

Bata manufactures a portfolio of huge product in terms of the large variety of shoes,
sandals and accessories that it offers and the consistency they promise. Those who look for no
nonsense products can rely on Bata. Bata shoes can be obtained in affordable prices and is loved
for its quality.

Owing its reputation of supplying good quality shoes, Bata has provided well-designed
products over the years and focus on its durability and price. This marketing strategy of Bata is a
hit in India, where rural population looks for cheaper alternatives. The main products of Bata are
casual shoes, formal shoes, sandals, men, women and kids collection, sport shoes and
accessories.

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 Marketing Department

Marketing is so basic that it cannot be considered a separate function. Marketing has been
defined in various ways. The definition that serves is the purpose by which individuals and
groups obtain what they need and want through creating, offering and exchanging products or
value with others

1) Khadim India Limited.

During the financial year 2018-19, Khadim India Limited launched pan-national
campaigns through elaborate outdoor hoardings and market specific hoardings in different states
and regions of the country that helped boost overall sales. The Print and Outdoor campaigns
conducted after identifying important sale phases, targeting specific locations or zones, were
particularly helpful to increase the overall footfall in stores during the peak sale periods. The
wedding campaigns in Bihar and Utter Pradesh and Back-to-School campaign in South India
targeted local customers and benefitted from communication that was markedly different from
the regular summer and festive campaigns. These zonal activities not only gave desired exposure
to the brand, but also helped in increasing sales throughout the respective seasons. During the
festive season, Pre-Puja in the East and Pre-Diwali across India, we also launched a series of
Print Advertisements to support our Outdoor Hoardings.

Your Companys e-commerce presence has been consistently growing and has witnessed
an increase in sales through major online players like Flipkart,

Amazon and Snapdeal, including other marketplaces, which continue to help us reach a
wide customer base in areas with Khadims stores as well as Multi Brand Outlets.

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 Your Companys social media presence has grown from Facebook to Instagram and
Twitter. Our branding activities carried out by an empanelled digital agency has also resulted in
increased exposure and awareness of the brand.

Your Companys association and sponsorship of team Kolkata Knight Riders and Chennai
Super Kings in the twelfth IPL season and subsequent instore activity has further supported both
our retail stores and distribution business.

In the Distribution sector, the channel partners were provided branding materials and
collaterals to enhance the visibility and improve sales.

Moreover, to make the "Khadims" brand more contemporary, and to appeal to a younger
audience, Khadim India Limited roped in celebrated personalities — namely Farhan Akhtar
and KanganaRanaut — as our brand ambassadors. We are planning to leverage their celebrity
through different media usage and at various points of sale.

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2) Bata Company.

Bata offers its products at an affordable price especially at the high cost it offers. Mass
Marketing pricing is main strategy of Bata brand to maintain its low prices for all its brand
products. Production of mass products leads to lower operating costs resulting in less product
costs.

Bata Limited, also called the Bata Shoe Organization is a Canadian Footwear and fashion
accessory manufacturer and retailer. It is based in Lausanne, Switzerland. It is a family-owned
business of Tomas Bata. The company is currently organised into three business sectors, i.e.,
Bata, Bata Industrials and AW Lab.

The company has production facilities in about 18 countries and a retail presence in
around 70 countries with over 5,400 shops.

Since its very inception, Bata has had a huge product portfolio in terms of the large
variety of shoes, sandals and accessories that it offers and the consistency they promise.
Millions, who look for no nonsense products, heavily rely upon Bata and the no frills attached
Bata shoes which can be obtained at affordable prices. Owing to its reputation of supplying good
quality shoes (and its history of supplying shoes to military in the First World War) people
expect the same durability from Bata. Bata has over the years provided well designed products
with focus on durability and price.

This marketing strategy was in fact a hit in India, where rural areas are much larger than
urban areas, and rural population looks for cheaper alternatives. Due to its constant penetrative

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price and the maintenance of good quality at that price, Bata showed consistent growth and
expansion, especially in medium scale market.

price is the strongest P in the marketing mix of Bata because BATA has had fantastic
response from the market due its affordable and mass market pricing. Anyone can purchase Bata
products easily. Bata uses psychological pricing as its pricing strategy. Bata generally prices a
product to the nearest lower “9” digit figure of the actual price. For example, any commodity to
be prices ₹1000 is priced at ₹999 to lure and attract more customers.

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 Human Resource Department

1) Khadim India Limited.

Khadim India Limited maintains its focus on Human Resource Development and
Management through several interventions. Enhancing the quality of Human Capital has been
the major focus of the Company to ensure business results.

Khadim India Limited revisited alignment through extensive Key Responsibility Area
(KRA) framing exercise. Additionally, it maintained and strengthened the development of store
staffs through rigorous on-the job-training. Assessment Centers were carried out in Khadim India
Limited to ensure multi-fold assessment of sales force and their individual development with the
help of project-based studies. Khadim has maintained its strong relationships with the premium
institutes of the country in the domain of footwear, manufacturing, retail, and management while
taking it forward by placing high potential employees for their further professional development.
Internal process in Khadim India Limited in terms of recruitment has been streamlined further
for both lateral as well as campus hire. Khadim India Limited has also developed internal HR
tools to evaluate the job positions in order to maintain industry parity. Furthermore, the Reward
and Recognition program of the Company runs smoothly enhancing the engagement and
commitment of employees.

During the year, Khadim has also tied up with the Government for assisting in the skill
development programme in the state of Kerala and Karnataka.

2)Bata Company.

Bata's Human Resource department is monitors, evaluates payroll and benefits inside the
factory. ... A proper training is conducted every month and during the time of recruitment:
Value Proper training conducted by HRM department is valuable to company personnel.

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 Finance Department

1) Khadim India Limited.

Finance is a term for matters regarding the management, creation, and study of money
and investments. Specifically, it deals with the questions of how and why an individual,
company or government acquire the money needed – called capital in the company context – and
how they spend or invest that money. Finance is then often split into the following major
categories: corporate finance, personal finance and finance. Finance planning and budgetary
control, company law, direct and indirect taxes, insurance, strategic planning etc.

For the financial year ended March 31, 2020 :- The Revenue from operations stood at Rs.-
31.22 Cr. compared with Rs. 21.17 Cr. in the previous year.

For the financial year ended March 31, 2019 :- The Revenue from operations stood at Rs.
21.17 Cr. compared with Rs. 37.90 Cr. in the previous year.

For the financial year ended March 31, 2018 :- The Revenue from operations stood at Rs.
37.90 Cr. compared with Rs. 30.64 Cr. in the previous year.

2) Bata Company.

Finance is about the overall "system", i.e., the financial markets that allow the flow of
money, via investments and other financial instruments, between and within these areas; this
"flow" is facilitated by the financial services sector. Finance therefore refers to the study of the

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securities markets, including derivatives, and the institutions that serve as intermediaries to those
markets, thus enabling the flow of money through the economy.

For the financial year ended March 31, 2020 :- The Revenue from operations stood at Rs.
326.92Crore compared with Rs. 329.66 Crore in the previous year.

For the financial year ended March 31, 2019 :- The Revenue from operations stood at Rs.
329.66 Cr. compared with Rs. 223.58 Cr. in the previous year.

For the financial year ended March 31, 2018 :- The Revenue from operations stood at Rs.
223.58 Cr. compared with Rs. 158.75 Cr. in the previous year.

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 Research Methodology

 Introduction :-

Research methodology is the specific procedures or techniques used to identify, select,

process, and analyze information about a topic. In a research paper, the methodology section
allows the reader to critically evaluate a study's overall validity and reliability. The four main
types are based on methods for collection: observational, experimental, simulation, and Derived.
Methods are the specific tools and procedures used to collect and analyze data (for example,
experiments, surveys, and statistical tests).

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 Rationale of the study

The purpose of this research is to study relationship profitability management and

profitability of listed companies and also is to help investors make better and more
relevant,decisions, Managers spend a lot of time to make decisions relating to working capital
Working.

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 Objectives

The Objectives & the study is to compare the profitability of two leading footwear
companies “Khadim& Bata”. The following are the two specific Objectives:-

1) .Evaluation of profitability of Khadim& Bata Companies for 3 years.

2) Comparative Profitability analysis of Khadim& Bata.

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 Sources of Data

Profitability ratio have been find by Profit& Loss a/c and balance-sheet from last three
years.

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 Methodology

1) Gross Profit Ratio.

2) Net Profit Ratio

3) Return On Capital Employee

4) Return On Net Worth

5) Employee Benefit Expanses Ratio

6) Total Expanses Ratio

7) Return On Equity Share Holder Fund

8) Return On Equity Share Capital

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 Gross Profit:-

Gross profit is the profit a company makes after deducting the costs associated
with making and selling its products, or the costs associated with providing its
services. Gross profit will appear on a company's income statement and can be
calculated by subtracting the cost of goods sold (COGS) from revenue (sales). These
figures can be found on a company's income statement. Gross profit may also be
referred to as sales profit or gross income.

GROSS PROFIT RATIO=Gross Profit/NET RATIO REVENUE FROM

OP*100

TABLE NO :- 1

PARTICULAR KHADIM BATA

2017-18 2018-19 2019-20 2017-18 2018-19 2019-20

COGS COST OF MATERIALS + PURCHASE + CHANGES IN INVENTORIES

=134.37+33 =176.44+34 =170.84+33 =269.52+98 =280.72+10 =256.96+10

5.5-4.31 8.79-28.77 6.84-16.45 4.23-57.9 86.13-82.52 73.62-34.27

=465.31 =496.46 =491.23 =1195.85 =1284.33 =1296.31

GP NET REVENUE - COGS

741.17- =791.04496. =761.28- =2680.12- =2996.99- =3053.45-

465.31 46 491.23 1195.85 1284.33 1296.31

=275.86 =294.58 =270.05 =1484.27 =1712.66 =1757.14

GP RATIO GP/NET REVENUE FROM OP.*100

=275.86/74 =294.58/79 =270.05/761 =1484.27/23 =1712.66/29 =1757.14/30

1.17* 100 1.054*100 .28* 100 80.12*100 96.99*100 53.45*100

=37% =37.23% =35% =55.38% =57.15% =57.55%

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 70

60

50

40

30

20

10

0
2017-18 2018-19 2019-20

khadims Bata

1) Bata’s Gross Profit has increased each year from 2017-18 to 2019-20 whereas for
Khadim it has continuously reduced.

2) Bata’s Gross Profit has always been the higher than khadims

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 NET PROFIT :-

Net profit is a company's total earnings after subtracting all expenses.

Expenses subtracted include the costs of normal business operation as well as
depreciation and taxes. Net profit is commonly referred to as a company's “bottom
line” and is a true indicator of a company's profitability.

Net profit ratio = Net profit after tax/Net profit from op

Table no :- 2

PARTICULAR KHADIM BATA

2017-18 2018-19 2019-20 2017-18 2018-19 2019-20

NP AFTER 37.9 21.17 -31.22 223.58 329.66 326.92

TAX

NP REVENUE 741.17 791.04 761.28 2680.12 2928.44 3053.45

FROM OP.

NP RATIO NP AFTER TEX/NP REVENUE FROM OP.*100

NP RATIO =37.9/741 =21.17/ =-31.22/ =223.58/2 =329.66/2 =326.92/3

.17* 100 791.04* 761.28*10 680.12*10 928.44*10 053.45*10
100 0 0 0 0
=5.11%
=2.67% =-4.10% =8.34% =11.26% =10.71%

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 14
12
10
8
6
4
2
0
2017-18 2018-19 2019-20
-2
-4
-6

Khadims Bata

1) Bata’s Net Profit Ratio 8.34% in 2017-18,It has been Increase to 11.26% in
2018-19. It has been reduced to 10.71% in 2019-20.

2) Khadim’s Net Profit Ratio 5.11% inn 2017-18,It has been Reduced to 2.67% in
2018-19. It also has been Reduced -4.10% in 219-20.

3) We can see in chart thatkhadim’s Net Profit Ratio is less than Bata’s Net Profit
Ratio. Khadim’s Net Profit Ration is Decrease every year.In 2019-20 they done loss.

35
 RETURN ON CAPITAL EMPLOYED:-

Return on capital employed (ROCE) is a financial ratio that can be used in

assessing a company's profitability and capital efficiency. In other words, this ratio
can help to understand how well a company is generating profits from its capital as it
is put to use.

TABLE NO:-3
PARTICULAR KHADIM BATA

2017-18 2018-19 2019-20 2017-18 2018-19 2019-20

PROFIT BEFORE INT. 56.96 33.20 -34.03 340.01 478.27 485.08

&TAX

-INTREST - - - - - -

PROFIT BEFORE 56.96 33.20 -34.03 340.01 478.27 485.08

TAX

TAX 19.06 12.03 -2.81 116.44 148.61 158.16

PROFIT AFTER TAX 37.9 21.17 -31.22 223.58 329.66 326.92

PRAFRANCE - - - - - -
DEVEDAND

EARNING FOR 37.9 21.17 -31.22 223.58 329.66 326.92

EQUITY SHARE
HOLDER

36
 TABLE NO:- 4
PARTICULAR KHADIM BATA

2017-18 2018-19 2019-20 2017-18 2018-19 2019-20

EQUITY SHARE 17.97 17.97 17.97 64.26 64.26 64.26

CAPITAL

-IFCTITIOUS - - - - - -
ASSESTS

EQUITY SHARE 17.97 17.97 17.97 64.26 64.26 64.26

CAPITAL

+RESEREV & SUR 250.20 269.70 215.45 1414.45 1672.27 1832.32

PLUS

EQUITY SHARE 268.48 287.67 233.42 1478.71 1746.53 1896.58

CAPITAL FUND

+DEBENTURE - - - - - -

+LONG TERM - - - - - -
UNSECURED LOAN

+LONG TERM - - - - - -
SECURED LOAN

CAPITAL 268.48 287.67 233.42 1478.71 1746.53 1896.58

EMPLOYED

37
 RETURN ON NETWORTH :-

Return on net assets (RONA) is a measure of financial performance calculated

as net profit divided by the sum of fixed assets and net working capital. ... RONA is
also used to assess how well a company is performing compared to others in its
industry.

Return on Networth:-

Profit after tax/share holders fund*100

TABLE NO :- 5

PARTICULAR KHADIM BATA

2017-18 2018-19 2019-20 2017-18 2018-19 2019-20

PROFIT AFTER 37.09 21.17 -31.22 223.58 329.66 326.92

TAX

SHARE EQUITY SHARE CAPITAL + RESERVES&SURPLUS

HOLDER FUND

=250.52+1 =269.70+1 =215.45+1 =1414.45+ =1682.27+ =1832.32+6

7.97 7.97 7.97 64.26 64.26 4.26

=268.49 =287.67 =233.42 =1478.71 =1746.53 =1896.58

RETURN ON Profit after tax/share holders fund*100

NETWORTH

=37.09/ =21.17/ =-31.22/ =223.58/14 =329.66/17 =326.92/18

268.49* 287.67* 233.42* 78.71*100 46.53*100 96.58*100
100 100 100
=15.12% =18.88% =17.24%
=14.11% =7% =-0.13%

38
 20

15

10

0
2017-18 2018-19 2019-20

-5

Khadims Bata

1) Bata’s Return On Net Worth 15.12% in 2017-18,It has been Increase to 18.68% in
2018-19. It has been reduced to 17.24% in 2019-20.

2)Khadim’s Return On Net Worth 14.11% inn 2017-18,It has been Reduced to 7% in
2018-19. It also has been Reduced -0.13% in 219-20.

3) We can see in chart thatkhadim’s Net Profit Ratio is less than Bata’s Return On
Net Worth. Khadim’s Net Profit Ration is Decrease every year.

39
 EMPLOYEE BENEFIT EXPENSES RATIO :-

The benefit-expense ratio is a metric used by the insurance industry to

describe the cost of providing underwriting insurance to the revenues it receives from
those policies. The ratio is calculated by dividing a company's costs of insurance
coverage by the revenues from premiums charged for that coverage.

Employee benefit expenses ratio = EBEXP/Total income*100

TABLE NO :- 6

PARTICULAR KHADIM BATA

2017-18 2018-19 2019-20 2017-18 2018-19 2019-20

EB EXPENSES 65.17 72.06 73.27 295.38 331.08 376.42

TOTAL 757.97 805.52 778.54 2680.12 2996.99 3122.29

INCOME

EB EXPENSES =65.17/ =72.06/8 =73.27/77 =295.38/26 =331.08/29 =376.42/31

RATIO 757.67*10 05.52*10 8.54*100 80.12*100 96.99*100 22.29*100
0 0
=9.41% =11.021% =11.047% =12.055%
=8.597% =8.97%

40
 14

12

10

0
2017-18 2018-19 2019-20

Khadims Bata

1) Bata’s EBER 11.021% in 2017-18,It has been Increase to 11.047% in 2018-19. It

has been Increase to 12.055% in 2019-20.

2) Khadim’s EBER 8.59% inn 2017-18,It has been Increase to 8.97% in 2018-19. It
also has been Increase 9.41% in 219-20.

3) We can see in chart thatKhadim&Bata EBER is Increase every year, Even though
Bata’s EBER is more the Khadim’s EBER.

41
 TOTAL EXPENSES RATIO :-

The total expense ratio is a measure of the total costs associated with
managing and operating an investment fund, such as a mutual fund. These costs
consist primarily of management fees and additional expenses, such as trading fees,
legal fees, auditor fees, and other operational expenses.

Total expenses ratio = Total expenses/Total income*100

TABLE NO :- 7

PARTICULAR KHADIM BATA

2017-18 2018-19 2019-20 2017-18 2018-19 2019-20

TOTAL 701.01 772.32 812.57 2340.10 2518.72 2637.22

EXEPENSES

TOTAL INCOME 757.97 805.52 778.54 2680.12 2996.99 3122.29

TOTAL Total expenses ratio = Total expenses/Total income*100

EXEPENSES
RATIO

=701.01/7 =772.32/8 =812.57/77 =2340.10/ =2518.72/ =2637.22/3

57.97* 100 05.52* 8.54* 100 2680.12*1 2996.99*1 122.29*
100 00 00 100
=97.49% =104.37%
=95.88% =87.31% =84.04% =84.46%

42
 120

100

80

60

40

20

0
2017-18 2018-19 2019-20

Khadims Bata

1) Bata’s TotalExpenseRatio 87.31% in 2017-18,It has been Reduce to 84.04% in

2018-19. It has been Increase to 84.46% in 2019-20.

2)Khadim’s Return On TotalExpenseRatio 92.49% in 2017-18,It has been Increase to

95.88% in 2018-19. It also has been Increase 104.37% in 219-20.

3) We can see in chart that Khadim’s TotalExpenseRatio is Grater than Bata’s

TotalExpenseRatio.

43
 RETURN ON EQUITY SHARE HOLDER FUND :-

The return on shareholders' equity ratio shows how much money is returned to
the owners as a percentage of the money they have invested or retained in the
company.It is calculated by dividing a company's earnings after taxesby the
total shareholders' equity.

RETURN ON EQUITY SHARE HOLDER FUND:-

Earning for equity shareholder/Equity share holder fund*100

PARTICULAR
Table no :- 8 KHADIM BATA

2017- 2018-19 2019-20 2017-18 2018--19 2019-20

18

AIRNY FOR EQUITY 37.90 21.17 -31.22 223.58 32966 326.92

SHARE HOLDERS

EQUITY SHARE EQUITY SHARE CAPITAL + RESERVE&SURPLUS

HOLDER FUND

=17.97 =17.97+26 =17.97+21 =1414.45+6 =1682.27+ =1832.32+

+250.5 9.07 5.45 4.26 64.26 64.26
2
=287.67 =233.42 =1478.71 =1746.53 =1896.58
=268.4
9

RETURN ON EQUITY Earning for equity shareholder/Equity share holder fund*100

SHAREHOLDER FUND

=37.90/ =21.177/2 =-31.22/ =223.58/14 =329.66/17 =326.92/18

268.49 87.67*100 233.42* 78.71*100 46.53*100 96.58*100
* 100 100
=7.36% 15.119% =18.87% =17.237%
=14.16 =-13.38%
%

44
 25

20

15

10

0
2017-18 2018-19 2019-20
-5

-10

-15

Khadims Bata

1) Bata’s Return On Equity Share Holder Fund 15.119% in 2017-18,It has been
Increase to 18.875% in 2018-19. It has been reduced to 17.237% in 2019-20.

2)Khadim’s Return On Equity Share Holder Fund 14.16% in 2017-18,It has been
Reduced to 7.36% in 2018-19. It also has been Reduced -13.38% in 219-20.

3) We can see in chart thatkhadim’s Return On Equity Share Holder Fund is less than
Bata’s Return On Net Worth. Khadim’s Return On Equity Share Holder Fund is
Decrease every year.

45
 RETURN ON EQUITY SHARE CAPITAL RATIO:-

Return on equity (ROE) is a financial ratio that shows how well a company is
managing the capital that shareholders have invested in it. To calculate ROE, one
would divide net income by shareholder equity.

RETURN ON EQUITY SHARE CAPITAL RATIO:-

Net Profit / Equity Share Capital*100

Table no :- 9

PARTICULA KHADIM BATA

R

2017-18 2018-19 2019-20 2017-18 2018-19 2019-20

NET PROFIT 37.90 21.17 -31.22 223.58 329.66 326.92

EQUITY 17.97 17.97 17.97 64.26 64.26 64.26

SHARE
CAPITAL

RETURN ON =37.90/ =21.17/ =-31.22/ =223.58/ =329.66/ =326.92/64

EQUITY 17.97* 100 17.97* 100 17.97* 100 64.26* 100 64.26* 100 .26* 100
SHARE
=210.91% =117.81% =173.73% =347.93% =513.90% =508.45%
CAPITAL
RATIO

46
 600

500

400

300

200

100

0
2017-18 2018-19 2019-20

KHADIMS BATA

1) Bata’s Return On Equity Share Capital Ratio 347.93% in 2017-18,It has been
Increase to 513.90% in 2018-19. It has been reduced to 508.745% in 2019-20.

2) Khadim’s Return On Equity Share Capital Ratio 210.91% inn 2017-18,It has been
Reduced to 117.81% in 2018-19. It also has been Increase 173.73% in 219-20.

3) We can see in chart thatkhadim’s Return On Equity Share Capital Ratio is less
than Bata’s Return On Return On Equity Share Capital Ratio.

47
 Summary Of All Ratios :-

Khadim Bata

Number Ratio 2017-18 2018-19 2019-20 2017-18 2018-19 2019-20

1 GP Ratio 37% 37.23% 35% 55.38% 57.15% 57.55%

2 NP Ratio 5.11% 26.7% -4.10% 8.34% 11.26% 10.71%

3 ROCE 268.48% 287.67% 233.42% 1478.71% 1746.53% 1896.58%

4 RONW 14.11% 7% -0.13% 15.12% 18.88% 17.24%

5 EBER 8.597% 8.97% 9.41% 11.021% 11.047% 12.055%

6 TER 97.49% 95.88% 104.37% 87.31% 84.04% 84.46%

7 RESHF 14.16% 7.36% -13.38% 15.119% 18.87% 17.237%

8 RESCR 210.91% 117.81% 173.73% 347.93% 513.90% 508.45%

48
 CONCLUSION

1) Khadim India Limited.

It is clearly evident that strength of Khadim’s lives in it’s aggressive distribution strategy
which serves the duel purpose of marketing as well.The past 20 year have provided Khadim’s
with a strong base in east,south and central India and the future plan lays down the similar
footprint for westindia as well. We strongly believe that this is a sound like strategy and shall
only increase Khadim’s foothold in the coming years.

2) Bata Company.

Bata India ltd had a great history and born in 1894.it had taken come into this form
because of by THOMAS BATA. It is a51%Subsidiary of Bata of Netherlands. Bata India ltd sell
60 million pairs per week in India and it is having 30,000 outlets

49
 APPENDIX

NO. PARTICULARS Pg No.

1 GP RATIO 32

2 NET PROFIT RATIO 34

3 RETURN ON CAPITAL EMPLOYED 36

4 RETURN ON NET WORTH 38

5 EMPLOYEE BENEFIT EXPANSES RATIO 40

6 TOTAL EXPANSES RATIO 42

7 RETURN ON EQUITY SHARE HOLDER FUND 44

8 RETURN ON EQUITY SHARE CAPITAL 46

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 BIBLIOGRAPHY

WWW.KHADIM.COM

WWW.BATA.IN

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