Title AFM Project on Annual Report

Section D
Team no. 3
Name of the company Bata India Ltd.

Name Enrollment no. Seat No.

Kashish Tyagi 21BSPHH01C0212 31
Vaibhav Rohatgi 21BSPHH01C1666 32
Sahithi 21BSPHH01C0824 33
Yogesh Pasupathy 21BSPHH01C1503 34
Contribution
CFS
Reports
BS
SOPL
Statement of Profit and Loss
Revenue from operations
Calculation
Revenue from operations for the year ended 31st March 2021 was
Rs. 2,92,574.19 . The Company derives its revenue from the
transfer of goods at a point in time. Revenue from operations are
the transfer of goods at a point in time in the following major
product lines was Rs. 2,90,470.00, and other operating revenues
included (like export incentives and scrap values) for Rs. 2104.19.

Revenue from operations

a) Disaggregated revenue information
Cigarettes*
Unmanufactured tobacco**
Cut tobacco
Chewing products#
Other traded goods
Total (A)

b)Other operating revenues

Export incentives
Recovery towards services rendered
Receipts from sale of scrap and ancillary products
Insurance claims
Display income received by retail stores
Other receipts
Total (B)
Total (A+B)

Total Revenue
Calculation
Total Revenue for the year ended 31st March 2021 was Rs.
3,04,344.23 . Total Revenue is the total sales of the company which
includes revenue from operations (Rs.2,92,574.19) and other
income(Rs. 11,770.04).

Total Revenue
a) Disaggregated revenue information
b)Other operating revenues
Other Income
Interest income
Rent and hire charges
Net gain on sale/redemption/fair valuation
Liabilities written back
Foreign currency fluctuation (net)
Gain on sale of property, plant and equipment
Gain on modification/concession in leases (Refer Note No. 42)
Miscellaneous Income
c) Total
Total (a+b+c)

Cost of raw materials and components consumed

Calculation
Cost of raw materials and components consumed for the year
ended 31st march 2021 was Rs. 51189.44 .

Cost of raw materials and components consumed

Unmanufactured and blended tobacco
Cigarette paper
Cardboard (shells, slides and others)
Filter rods
Aluminium foil/metallised paper
Cellulose paper
Flavours for chewing products
Betel nut
Katha, lime and bulking agent
Paper/Laminate pouches for chewing products 721.37 1758.92
Miscellaneous
Total

Employee benefits expense

Calculation
Employee benefits expense for the year ended 31st march 2021
was Rs. 23547.17. Employee benefit expense is the expenditure for
the benefit of employees which includes salaries,wages, (Rs.
19930.38), contribution to provident funds (Rs. 1421.14), gratuity
and superannuation expense (Rs. 694.87) and staff welfare
expenses (Rs. 1500.78).

Employee benefits expense

Salaries and wages
Provident fund expense
Gratuity and superannuation expense
Workmen and staff welfare expenses
Total

Depreciation and amortization expense

Calculation
Depreciation and amortization expense for the year ended 31st
March 2021 was Rs 13845.10 . Depreciation and amortization
expense is the expenditure on machinery, Assets and plant which
includes Depreciation on property , plant and equipment (Rs.
8428.34), Depreciation of Investment Property (Rs.
27.36)Amortization on Intangible Assets (Rs.153.94) and
Depreciation on Right-of-use asset (Rs. 5235.46).

Depreciation and amortization expense

Depreciation of property, plant and equipment
Depreciation of Investment property
Amortization of Intangible assets
Depreciation of Right of use asset
Total

EPS & Diluted EPS

Calculation
EPS and Diluted EPS for the year ended 31st March 2021 was Rs.
(68.65).Basic EPS amounts are calculated by dividing the profit for
the year attributable to equity holders of the Company by the
weighted average number of equity shares outstanding during the
year.
Diluted EPS are calculated by dividing the profit for the year
attributable to the equity holders of the Company by weighted
average number of equity shares outstanding during the year plus
the weighted average number of equity shares that would be
issued on conversion of all the dilutive potential equity shares into
equity shares.

EPS & Diluted EPS

Weighted Average number of equity shares in calculating basic EPS
and diluted EPS
Earnings/(loss) per equity share in INR
Basic (INR)
Diluted(INR)
 (Amounts in INR Lakhs)

Comparison Interpretation
Last year, revenue from operations The possible reason for
was Rs. 3,04,468.87. This year it fell fall in sale is because of
by Rs. 11,894.68. The % of change the lockdown imposed. As
was -4.06% these products have a
chance to increase the
lung/heart related
diseases and make people
more susceptible to
For the year ended For the year ended
31 March 2021 31 March 2020

208,629.91 210,879.70
43,037.49 37,940.01
3,652.55 5,570.31
5,740.97 11,475.69
29,409.08 36,019.08
290,470.00 301,884.79

82.07 86.92
379.01 190.13
658.29 735.98
42.75 167.84
596.04 918.85
346.03 484.36
2,104.19 2,584.08
292,574.19 304,468.87

Comparison
Last year, total revenue was Rs.
3,15,101.99.This year it fell by Rs.
10,757.76. The % of change was -
3.41%.
Interpretation
The possible reason for
fall in total sale due to the
fall in total sales and and
other income.

For the year ended For the year ended

31 March 2021 31 March 2020
290,470.00 301,884.79
2,104.19 2,584.08

398.64 381.14
 272.24 244.06
12,459.84 8,317.25
106.51 303.15
527.75 573.71
8.95 -
1,039.61 -
256.50 167.15
11,770.04 10,633.12
304,344.23 315,101.99

Comparison
Last year, Cost of raw materials
consumed was Rs. 69734.30.This year
it fell by Rs. 18544.86. The % of
change was -26.59%.
Interpretation
The reason for this is, due
to the lower demand , the
company reduced the
expenditure on raw
materials in order to
reduce the production.

For the year ended For the year ended

31 March 2021 31 March 2020
22,819.57 29,237.93
799.62 947.48
7,541.69 9,348.96
9,679.37 13,541.48
1,316.82 1,018.09
857.11 1,046.99
477.02 366.35
1,398.96 3,411.61
305.22 706.81
721.37 1,758.92
5,272.69 8,349.68
51,189.44 69,734.30

Comparison Interpretation
Last year, Employee benefit expense The reason for this could
was Rs. 25001.30. This year it fell by be due to the salary cuts
Rs. 1454.13 The % of change was - and downsizing.
5.81%.

For the year ended For the year ended

31 March 2021 31 March 2020
19,930.38 21,093.34
 1421.14 1479.68
694.87 636.83
1500.78 1791.45
23,547.17 25,001.30

Comparison Interpretation
Last year , Depreciation and The reason for this could
amortization expense was Rs be due to sale of fixed
15238.39. This year It fell by assets which directly
Rs.1393.29. The % of change was - results in lowered
9.15%. depreciation.

For the year ended For the year ended

31 March 2021 31 March 2020
8428.34 9953.87
27.36 27.36
153.94 99.35
2,018.94 2,314.62
2,647.50 2,957.97

Comparison Interpretation
Last year, EPS and Diluted EPS was Rs. This fall due to the fall in
74.60 which turned into negative and the demand and sales of
fell by Rs 5.95. The % of change was - the company due to
7.97%. Covid.

No. of shares No. of shares

51,993,920 51,993,920

68.65 74.60
68.65 74.60
for disaggregated revenue info
The table below presents disaggregated revenues from contracts with customers by
geography. The Company believes that this disaggregation best depicts how the
nature, amount, timing and uncertainty of the revenues and cash flows are affected
by industry, market and other economic factors.
Balance Sheet
Shareholder's Funds
Calculation
In Share holders fund the subscribed and fully paid share capital is 642.64
and the reserves and surplus which includes security premium, general
reserve, retained earnings, sums up to the total shareholders fund of
16,938.27. By adding the equity share capital and surplus we get 17580.91

Shareholder's Funds
Equity Share Capital
Subscribed and fully paid up share capital
Equity share capital
128,527,540 (March 31, 2020: 128,527,540) equity shares of INR 5 each
Reserves and Surplus
Securities Premium
General Reserve
Retained Earnings
Capital Reserve
Total

Non Current Liabilities

Calculation
In Non current liabilities, the lease liability of the company is 8596.65 and
the provisions is Rs 20.64

Total Non-current liabilities

Lease Liability
Provisions
Total

PPE
Calculation
In PPE of march 2021 the freehold land was 240.85 , the buliding was
1070.03, leasehold improvements was 590.73,Plant and equipments was
343.39, furniture and fixtures was 535.31, vehicles was 12.58 office
equipments was 22.43 which sums to total PPE of 2834.12
PPE
PPE
Accumulated depreciation
Net value

Trade Receivables and Payables

Calculation
The trade receivables of the year 2021 is 793.66 and the trade payable to
micro, medium and small parties, to related parties and others sums up to
4397.28

Trade Receivables
Trade receivables (Unsecured, considered good)
Trade receivables which have significant increase in credit
Less: Loss allowance for trade receivable
Trade receivables from related parties - unsecured, considered good

Total

Trade Payable
Trade payables to micro, small and medium enterprises
Trade payable to others
Total

Cash and Cash Equivalents

Calculations
By summing up the balance in current account in the bank and cash in
hand we get total cash and cash equivalents value as 544.9

Components of cash and cash equivalents

Cash on hand
on current accounts
Total
 (Amount in INR Million)

Comparison
As of 31 March 2020 the
shareholders funds was 18938.28 ,
This financial year 31 March 2021
it fell to 17580.91
Interpretation
Equity share of INR 5 is assigned to
subscribed and fully paid share
capital to 128,527,540 share holders
which remains the same for both the
year . The only change evident is
retained earnings which had declined
by 7.17%

2021 2020 As of March 2021

642.64 642.64 642.64

501.36 501.36
1,498.84 1,498.84
14,938.07 16,296.44
0.00 0.00 16,938.27
17,580.91

Comparison
During March 2020 the non
current liability was 10378.53 and
in the year 2021 it declined to
8617.29
Interpretation
From the calculation we can see that
there is a decline in lease liability and
provisions of the company in the year
2021 and the most significant decline
can be seen in the lease liability
which accounts for about 17.6%
reduction

As of March 2021 As of March 2020

8,596.65 10,353.46
20.64 25.07
8,617.29 10,378.53

Comparison Interpretation
In the year of 2020 the amount
was 3925.06 but in 2021 it
reduced to 2384.12
Due to Pandemic the PPE which
includes buildings, leasehold, plant
and equipments furniture vehicles of
the company is comparitively low
than previous year as they sold much
plants, equipments and machinery
which accounts for the accumulated
depreciation of 3499.19

As of March 2021 As of March 2020

6,333.31 6,298.29
3,499.19 3,023.57
2834.12 3,295.06

Comparison
the trade receivables of the year
2021 which is 793.66 is
comparitively greater than the
previous year value of 632.71, If
we consider trade payable year
2020 value is higher than 2021
which is 4397.28
Interpretation
The trade receivable is higher in 2021
because of the unsecured and
considered goods for both the trade
receivable and related part is higher
which accounts for about 25.44% In
trade payable the trade payable to
others is much lower that 2020 and
the total decline in trade payable is
37.3%

As of March 2021 As of March 2020

778.16 600.21
20.39 7.52
-20.39 -7.52

15.50 12.10
739.66 612.31

As of March 2021 As of March 2020

288.03 188.92
4,109.25 4,687.05
4,397.28 4,875.97

Comparison Interpretation
As of 2020 the cash and cash From the financial notes it can be
equivalent is 152.11 which is lower observed that there is a increase in
that 2021 value which is 544.90 the bank accounts, thus increasing
the overall amount of the year 2020
to 2021 by 258.23%. The possible
reason can be selling of intangible
assets, zero dividend tax paid and
other Incomes.

As of March 2021 As of March 2020

0.55 34.49
544.35 117.62
544.9 152.11
As of March 2020

642.64

18,296.64
18,939.28
Cash flow Statement

Cash Flow from Operating Activities

Particular
1 Profit before tax
2 Adjustments to reconcile profit before tax to net cash flows:
3 Operating profit before working capital changes (1+2)
4 Change in Working Capital
5 Changes in non current assets and liabilities
6 Cash Generated From Operations (3+4+5)
7 Less : Taxes paid

CALCULATION
Particular
Net Cash Flow from Operating Activities

COMPARISON
The Net Cash Flow from Operating Activities decreased from 5817.13 million INR in 2020 to 4610.54 million
INR in 2021. It has decreased by 1206.59 million INR i.e. by 20.74%

INTERPRETATION
The Cash Inflow has decreased in 2021 compared to 2020. Operating profit before change in working capital
was high in 2020 year end compared to 2021 due to which there was maximum decrease. The working capital
was affected positively in 2021, i.e. , there was inflow in trade receivables, payables, inventories, short term
provisions and current assets compared to less inflow or more outflow in the respective fields in 2020

Cash flows from Financing Activities

Particular
Dividend paid to equity shareholders
Dividend distribution tax
Payment of lease liability (including interest on lease liability)
Payment of initial direct cost recognised as Right-of-use asset
Interest paid

CALCULATION
Particular
Net Cash Flow from Financial Activities

COMPARISON
The Net Cash Flow from Financial Activities is negative i.e. the outflow is more than inflow. But, compared to
2020 where the outflow was high as 4360.76 million INR, the outflow in 2021 reduced to 3690.95 million INR
i.e. the outflow rate decreased by 15.36% i.e. by 669.81 million INR
INTERPRETATION
Cash outflow due to financing activities was higher in 2020 compared to cash outflow in 2021. Due to the
sudden and iill-effect of Pandemic dividend distribution, interest paid were high in 2020 compared to 2021.
Though outflow is still there but it has reduced by 15.36%.
Cash flows from Investing Activities
Particular
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Repayments/(Investments) in bank deposits (having original maturity of more than three months)
Interest received (finance income)

CALCULATION
Particular
Net Cash Flow from Investing Activities

COMPARISON
The Net Cash Flow from investing activities is negative i.e. cash outflow for investing is more than inflow.
Compared to 2020 where outflow of cash is 1890.05 million INR, the outflow in 2021 has decreased by 1363.25
million INR i.e. by 72.127%

INTERPRETATION
There was more Cash Outflow due to investing activities was higher in 2020 compared to 2021. In 2020, more
amount was invested in purchase of PPE and investment in deposits compared to 2021. It was reduced by
72.172% in 2021. Unexpected Pandemic situation that wasn't considered led to more investment in 2020 while
2021 is more about consolidating.
 (Amount in INR Million)

31-Mar-21 31-Mar-20
(1166.37) 4,872.36
3107.26 3497.54
1940.89 8369.90
2066.35 (720.48)
135.58 38.00
4142.82 7687.42
467.72 (1870.28)

31-Mar-21 31-Mar-20
4610.54 5817.13

31-Mar-21 31-Mar-20
(514.89) (803.89)
- (165.12)
(3151.75) (3361.34)
(12.88) (17.87)
(11.43) (12.54)

31-Mar-21 31-Mar-20
(3690.95) (4360.76)
31-Mar-21 31-Mar-20
(367.50) (855.49)
10.52 (1.91)
(920.05) (1669.77)
750.23 637.12

31-Mar-21 31-Mar-20
(526.80) (1890.05)
Reports

Director's Report
BOD presented the 88th Annual report covering operational and financial aspects of the company along with the au
Director's also stated the reasons for low performance of the company which was majorly due to coronavirus paned
ratios etc. The company did not entered into any Related party transactions during the year. As per director's, the au
the Company in terms of the provisions of the Act and the Rules framed thereunder. Director's report mentioned ab
The report also contain the information on R&D and CSR activities as well. As per the report, the company incurred
Buddy4Study India Foundation & Sports village Foundation under BATA Children's programme (BCP). The main moti
children. There were number of other CSR activities as well like Girl child empowerment, Covid-19 community inter

Management Discussion and Analysis

The management claims that India is the second-largest producer of footwear and third-largest footwear consumer
importance for luxry retailing of products like fragrances, gourmet retailing, accessories and jewellery among many
Unfortunately the company is not able to meet the demand beacuse of coronavirus panedemic and lockdown meas
shoppers are purchasing casual and comfortable footwear. However, an increase in demand of sports footwear is se
To maintain the growth, company has expanded its e-commerce footprints making deliveries in over 1100 cities, ro
WhatsApp chat with our neighbourhood stores. Also, the management do understand the importance of innovation
information on the retail business activities, where they explained how they tackled the situation of panedemic by c
openings.

Auditor's Report
M/s. B S R & Co. LLP, Chartered Accountants served as the Auditor of BATA India Ltd. The auditors audited the finan
information required by the Companies Act, 2013 which provides true and fair view in conformity with the accounti
matters that, in auditor's professional judgment, were of most significance in the audit. There were two key audit m
because a substantial part of Company’s revenue relates to retail sales through a large number of company owned o
recognised inappropriately. For Net realisable Value, the reason why it was considered as key matter is the Compan
degree of judgment is thereby required to assess the NRV of the inventories and appropriate write down of items w
Auditors have clearly stated that only Financial statements are audited by them and do not hold any opinion or expr

Corporate Governance Report

The company has established good corporate governance practices in each and evey function of the organization. Th
of corporate governance and be considered as a good corporate citizen of the Country. The Board Members possess
Independent directors are also directors of other listed entities and same is in compliance with ParaC(2) of Schedule
skills/expertise/competency along with the director's names specifying their areas.
The BOD meeting held 6 times during the financial year 2021, and atleast 1 meeting was held in every quarter and t
Independent Directors are required to have atleast one separate meeting without non-independent directors, follow
independent directors & assessed the flow of information between management and BOD. The BOD of the compan
requirements of the provisions of Section 178 of the Act, the Listing Regulations and the Guidance Note on Board Ev
of the Board, Individual Directors including the Chairman of the Board of Directors for the financial year ended Marc

Corporate Information

BOARD OF DIRECTORS Designation/Role

Mr. Ashwani Windlass Chairman and Independent Director
Mr. Akshay Chudasama Independent Director
Mr. Ashok Kumar Barat Independent Director
Ms. Radha Rajappa Independent Director
Mr. Ravindra Dhariwal Independent Director
Mr. Alberto Toni Non-Executive Director
Mr. Shaibal Sinha Non-Executive Director
Mr. Rajeev Gopalakrishnan Managing Director
Mr. Sandeep Kataria Whole-time Director and Chief Executive Officer
Mr. Ram Kumar Gupta Director Finance and Chief Financial Officer
Ms. Vidhya Srinivasan Director Finance and Chief Financial Officer

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE Designation/Role

Mr. Ashok Kumar Barat Member
Mr. Ram Kumar Gupta Member
Mr. Sandeep Kataria Member

STAKEHOLDERS RELATIONSHIP COMMITTEE Designation/Role

Mr. Alberto Toni Chairman
Mr. Akshay Chudasama Member
Mr. Ravindra Dhariwal Member
Mr. Rajeev Gopalakrishnan Member
Mr. Ram Kumar Gupta Member
Mr. Sandeep Kataria Member

NOMINATION AND REMUNERATION COMMITTEE Designation/Role

Mr. Ravindra Dhariwal Chairman
Mr. Akshay Chudasama Member
Mr. Alberto Toni Member
Mr. Shaibal Sinha Membe
 pany along with the audited financial statements. Director's provided Financial highlights and performance of the comapny. In
e to coronavirus panedemic. Apart from financial statements, they also shared details on Share capital, dividends, general rese
As per director's, the auditors has not informed the company regarding any condition rendering them ineligible to continue as
's report mentioned about the Championship Award, which was awarded to them under Quality Stream.
the company incurred an expenditure of Rs. 57.55 million on R&D. For CSR activities, the company entered into partnerships w
e (BCP). The main motive to enter in such partnerships was to customize their programs to suit the requirements of the school
id-19 community interventions, Stide with pride etc.

est footwear consumer globally and expects market for fashion retailers on the back of a large young adult consumer base and
ewellery among many others. This creates demand in trendy, fancy and comfortable footwears among the youth of the countr
mic and lockdown measures. As a result, most of the people have shifted to "work from home" and socialising becomes a rare o
of sports footwear is seen since people are getting health concious.
s in over 1100 cities, rolling out its omni-channel home delivery across 1200+ stores and giving customers the option to shop fr
portance of innovation and designed & launched antiviral and antibacterial masks and sold over 2,00,000 units. The manageme
tion of panedemic by conducting extensive trainings for their store teams and prepared a detailed 27-point safety SOP for thei

itors audited the financial statements of the company and provided the opinion for the same. As per the audit report, compan
mity with the accounting principles generally accepted in India. The audit report also provided key audit matters, key audit ma
e were two key audit measures specified - 1) Revenue Recognition and 2) Net Realisable Value. Revenue Recognition was a sign
er of company owned outlets and comprises high volume of individually small transactions which increases the risk of revenue
y matter is the Company manufactures and sells goods which are subject to changing consumer demands and fashion trends. Si
write down of items which may be ultimately sold below their cost.
old any opinion or expression for any other information thereon.

n of the organization. The company complies with applicable laws and regulations in letter and spirit and is committed to the hig
oard Members possess adequate qualifications, knowledge, expertise and experience to provide strategic guidance to the Com
th ParaC(2) of Schedule V to the listing regulation. As per ParaC(2) of Schedule V company has also provided the list of the Area

in every quarter and there was maximum gap of 120 days between any two meetings. According to Scedule IV and listing regu
endent directors, following that company had one meeting on 19th March 2021 where they had discussion on performance of
he BOD of the company has also promulgated various committees and delegated specific responsibilities to them. In complianc
ance Note on Board Evaluation issued by SEBI in January 2017, a Performance Evaluation was carried out internally for the Boa
ancial year ended March 31, 2021.

AUDIT COMMITTEE
Mr. Ashok Kumar Barat
Mr. Ravindra Dhariwal
Mr. Alberto Toni

EXECUTIVE COMMITTEE
Mr. Rajeev Gopalakrishnan
Mr. Sandeep Kataria
Mr. Ram Kumar Gupta
Ms. Vidhya Srinivasan
Mr. Sanjay Kanth
Ms. Kanchan Chehal
Mr. Vijay Shrikant Gogate
Mr. Kumar Sambhav Verma
Mr. Pankaj Gupta
Mr. Anand Narang
Mr. Hitesh Narayan Kakkar
Mr. Matteo Lambert
Mr. Amit Kumar Gupta
Mr. Sumit Chandna
Mr. Ankur Kohli
Mr. Sanjeev R Koshe

RISK & COMPLIANCE MANAGEMENT COMMITTEE

Mr. Akshay Chudasama
Mr. Ashok Kumar Barat
Mr. Rajeev Gopalakrishnan
Mr. Ram Kumar Gupta
Mr. Sandeep Kataria
Mr. Shaibal Sinha
Mr. Sanjay Kanth
Mr. Manoj Goswani
Mr. Sanjeev R Koshe
rovided Financial highlights and performance of the comapny. In addition,
they also shared details on Share capital, dividends, general reserve, financial
egarding any condition rendering them ineligible to continue as the Auditors of
as awarded to them under Quality Stream.
R&D. For CSR activities, the company entered into partnerships with
customize their programs to suit the requirements of the school teachers and

n retailers on the back of a large young adult consumer base and increasing
fancy and comfortable footwears among the youth of the country.
ve shifted to "work from home" and socialising becomes a rare occurrence,
cious.
y across 1200+ stores and giving customers the option to shop from homes via
antibacterial masks and sold over 2,00,000 units. The management provided
store teams and prepared a detailed 27-point safety SOP for their store

vided the opinion for the same. As per the audit report, company gives the
a. The audit report also provided key audit matters, key audit matters are those
tion and 2) Net Realisable Value. Revenue Recognition was a significant matter
dividually small transactions which increases the risk of revenue being
re subject to changing consumer demands and fashion trends. Significant
r cost.
on.

ws and regulations in letter and spirit and is committed to the highest standards
xpertise and experience to provide strategic guidance to the Company. Four
C(2) of Schedule V company has also provided the list of the Area & core

ween any two meetings. According to Scedule IV and listing regulation,

19th March 2021 where they had discussion on performance of non-
ttees and delegated specific responsibilities to them. In compliance with the
, a Performance Evaluation was carried out internally for the Board, Committees

Designation/Role
Chairman
Member
Member

Designation/Role
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member

Designation/Role
Chairman
Member
Member
Member
Member
Member
(SVP-Manufacturing &
Sourcing) - Member
(SVP- Legal)- Member
Assistant Vice President -Internal Audit - Member