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Bata report 2016.
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Bata report 2016.qxp:Layout 1 6/4/17 2:40 PM Page 2
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our annual report 2016
02 Vision, Mission & Values
cwiPvjKgjx 04 Board of Directors
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gvbRgU wUg 06 Management Team
Kvvwbi Z_ 11 Company Information
evwlK mvaviY mfvi wew 13 Notice of Annual General Meeting
14 Retail
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16
17
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Marketing Events & Awards
Manufacturing
Product Development & Merchandising
Human Resources, Corporate Social

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Responsibility
mfvcwZi fvlY 22 Chairman's Statement
cwiPvjKgjxi cwZe`b 26 Directors' Report
KcviU Mfb 30 Corporate Governance

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Kgcvq mvwUwdKU 38 Compliance Certificate
wbixv KwgwUi cwZe`b 39 Audit Committee Report
wbixKì cwZe`b 41 Auditors' Report

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wwZc 42 Statement of Financial Position
jvf-jvKmvb wnmve 43 Statement of Profit or Loss and

Other Comprehensive Income
BKzBwU cwieZbi weeiY 44 Statement of Changes in Equity
bM` A_ cevni weeiY 45 Statement of Cash Flows
wnmvei wUKvmg~n 47 Notes to the Financial Statements
cw dig 79 Form of Proxy

VISION,
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MISSION d .c
& VALUES
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Vision
To make great shoes accessible to everyone
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Mission
ANNUAL REPORT 2016
To help people look and feel good.

To be the customer's destination of choice.
To attract and retain the best people.
To remain the most respected footwear company.
02
Management Team
OUR VALUES
Board of Directors
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Our products have to make our customers look good
and feel great. We become our customers choice
by offering a personal shopping experience to create
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Our Values
long standing customer relationships. Therefore, at
Bata the below five values are integral parts of our
way of working:
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Vision, Mission & Values

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SERVE WITH PASSION BE BOLD COUNT ON ME
Contents
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EXCEED CUSTOMER
IMPROVING LIVES
EXPECTATIONS
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BOARD
OF DIRECTORS
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Mr. Rajeev Gopalakrishnan
Chairman
Mr. Rajeev Gopalakrishnan (Indian national) has been the Chairman

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of Bata Shoe Company (Bangladesh) Limited since 2014. With a rich
experience of over 27 years in footwear industry, Mr. Rajeev has earlier
grasped positions of Director - Wholesale Channels with Bata International
Canada and Vice President of Retail Operations and Wholesale Division in Bata
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India. He was also posted as the Managing Director of Bata Thailand and Bata
Bangladesh. At present he is holding the position of President of Bata, South Asia.
CMO Asia Summit in Asia Retail Conference in 2015 recognized Mr. Rajeev
as the Retail Professional of the Year.
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Mr. Chitpan Kanhasiri

Managing Director
ANNUAL REPORT 2016
Mr. Chitpan Kanhasiri (Thai national) has been the

Managing Director and Vice Chairman of the Company since
April 2014. Fabulous 15 years background in shoe innovation and
footwear marketing. He has Previously held Marketing Manager
position with M/s ADDA in Thailand. After joining Bata in 2007 he
was posted as Acting Company Manager of Bata Malaysia and
Retail & Non Retail Sales Manager of Bata Thailand.
04
Company Information
Mr. Shaibal Sinha
Director
Management Team
Mr. Shaibal Sinha (Indian national) was appointed as Director
of the Company in 2012. Remarkable post-qualification
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experiences in different positions in Finance across the globe based
out of India, Singapore, United Kingdom and Middle East. Just before
joining Bata, he was working with Reckitt Benckiser. Currently, he is the
Group Operations Finance Director based out of Singapore. He is also
a member of the Board of Directors of China Footwear Services, Bata
Indonesia, Bata Malaysia, Bata Thailand, and Bata Srilanka.
Board of Directors
Mr. Rashidul Hasan
Independent Director
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Mr. Rashidul Hasan (Bangladeshi national) has been serving as a Director
Our Values
since 1985 on the Board. As an independent director he is also the Chairman
of Audit Committee. Renowned civil servant, retired as Director General,
Department of Industries in 1981. He is the present Chairman of Uttara Finance &
Investments Ltd., and hold position of an Independent Director in Reckitt Benckiser
Bangladesh and Monno Group of Industries. He also engaged in various activities of
Non-Governmental Organizations such as Trustee of Kumudini Welfare Trust and a
Promoter Director of Grameen Uddog. He was appointed as the Managing Director of
Industrial Promotion Development Company of Bangladesh (IPDC), the first joint
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venture investment and finance company of Bangladesh with IFC of the World Bank.
Vision, Mission & Values

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Mr. K. M. Rezaul Hasanat

Director
Mr. K. M. Rezaul Hasanat (Bangladeshi national) has been a

Director of the Company since 2011. Well known member of the
business fraternity and the Chairman and CEO of Viyellatex Group.
Under his leadership, Viyellatex Group came into existence in 2002
and has become one of the fastest growing business conglomerates in
Bangladesh. He owes a credit to be a pioneer in his industry in
implementing numerous green initiatives, which has led him to be
elected President of United Nations Global Compact Bangladesh
Network in 2012.
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Mr. Subrata Dutta (Indian national) was appointed as Head of

Human Resources of the Company in 1st January 2015. He
Mr. Subrata Dutta
has remarkable 23 years of experience in HR management in
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Head of Human Resources
Bata and other MNCs. He is well versed with Bangla
language. Prior to joining in Bata Bangladesh he was the
Assistant Vice President of Human Resources in Bata India.
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Mr. Carlos Arturo Zuluaga Sanchez (Colombian national) was
joined in Bata Bangladesh as Product Development Manager
in 01 September 2011. Earlier to joining in Bata Bangladesh Mr. Carlos Arturo Zuluaga Sanchez
Product Development Manager
he was Technical Developer of Bata Colombia. He has total 41
years of experience in shoe-line innovation.
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ANNUAL REPORT 2016
Mr. Omar Faisal Chowdhury (Bangladeshi national) was

appointed as General Manager, Non Retail, effective from
Mr. Omar Faisal Chowdhury 2015. He is serving the Company for last 14 years. Holding
General Manager, Non Retail business management degree, he worked as Area Manager in
retail operations, Merchandizing Manager, and Central
Distribution Manager.
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Notice of Annual General Meeting

Company Information
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Mr. Jalil Ahamed Chowdhury (Bangladeshi national) was
appointed as General Manager, Supply Chain, effective from
2016. He worked for the Company at his first spell, as Quality Mr. Jalil Ahamed Chowdhury
Assurance Manager. Before joining in Bata Bangladesh he General Manager, Supply Chain
was Manager - Quality ELS & Compliance in Avery Dennison
South Asia, Bangladesh. His total 21 years of job experience
in planning and quality assurance is benefitting the Company
in Supply Chain Management.
Management Team
Mr. A. A. Md. Arfanul Hoque
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Asst. General Manager, Merchandising .c
Mr. A. A. Md. Arfanul Hoque (Bangladeshi national) is
responsible as Assistant General Manager, Merchandising,
effective from 2015. Having more than 11 years of experience
in merchandizing management, he also performed as Area
Manager in retail operations of the Company. Before to joining
in Bata he worked for New Zealand Dairy Ltd. Altogether he
has 17 years of experience in various capacities.
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Board of Directors
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Mr. Md. Hashim Reza (Bangladeshi national) was appointed

as Company Secretary effective from 2005. Beside this
position, he is also holding the position of General Manager - Mr. Md. Hashim Reza
Finance. He started his career with Bata Bangladesh as senior Company Secretary
officer in Finance and Administration Department since 1992.
Our Values
Altogether he has 25 years of experience in this company. He
is FCMA from the Institute of Cost and Management
Accountants of Bangladesh, and FCS from the Institute of
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Chartered Secretaries of Bangladesh.
Mr. Tapan Bala (Bangladeshi national) was appointed as Head

of Internal Audit effective from 2012. Prior to his position in
Mr. Tapan Bala Bata Bangladesh, he worked as Manager - ACNABIN
Head of Internal Audit Chartered Accountants, Bangladesh. He has 6 years of
experience in various companies. He is FCA from the Institute
of Chartered Accountants of Bangladesh and ACMA from the
Institute of Cost and Management Accountants of Bangladesh.
He also obtained BBA and MBA, major in Accounting from the
University of Dhaka, Bangladesh.
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ANNUAL REPORT 2016
12
Manufacturing
Notice of Annual General Meeting
Notice is hereby given that the 45TH ANNUAL GENERAL MEETING of Bata Shoe Company (Bangladesh) Limited
Retail & Marketing events

will be held on Tuesday, 20 June 2017 at 10:30 a.m. at Registered Office and Factory Premises, Tongi, Gazipur to
transact the following business:
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1. To receive, consider and adopt the Directors Report for the year ended 31 December 2016.
2. To receive, consider and adopt the Audited Financial Statements of the company and the Auditors Report
thereon for the year ended 31 December 2016.
3. To approve Dividends as recommended by the Directors.
4. To elect Directors.
Notice of annual general meeting

5. To appoint Auditors for the year 2017 and to fix their remuneration.
Tongi, 27 April 2017
NOTES:
1.
d .c By order of the Board,
Md. Hashim Reza

Company Secretary
22 May 2017 is the RECORD DATE. Shareholders whose names appearing in the share register of the
Company information
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Company or in the depository register on that date will be eligible to attend at the AGM.
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. In compliance with the Bangladesh Securities and Exchange Commissions Circular No. SEC/CMRRCD/
2009-193/154 dated 24 October 2013, any Gift/Gift Coupon/Food Box shall not be given at the 45th AGM.
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4. 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.
Board of directors
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13
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ETAIL
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n 2016 our Retail Channel sold 9.5 million pairs of shoes and turnover Tk. 5.94 billion which is 5% growth
against last year. To achieve this outstanding growth your company has taken different initiatives like aggressive
marketing programmes,
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product innovation, market

expansion, human resource
development, operational
efficiency etc.
In expansion Program,
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Company opened 11 new

stores. In addition we
renovated 9 potential stores
in 2016. The new stores
generated additional
ANNUAL REPORT 2016
turnover of Tk. 73.1 million.

More than 900 new lines
was introduced before the
biggest festival Eid-ul-Fitre,
which created sensation
among our valued customers.
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MARKETING EVENTS
Human Resources
Adidas, a famous footwear
brand launched in Bata
Bangladesh.
Manufacturing
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In 2016, we have done plenty of marketing
events to highlight our brand image and to
increase sell. Bata Bangladesh introduced
many exclusive new lines of shoes the
Now in

majority of which comes during festival
periods. Also we have introduced Adidas
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Bangladesh.
branded shoe in
As WARD

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Bata Bangladesh has received

the BEST BRAND AWARD in footwear
category for 4 consecutive years including
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2016 as No. 1 Shoe brand in Bangladesh.

Bata has received the award as the leading
footwear company in the country.
Company information
The objective of the best brand award is to
exhibit that brands are the integral part of the
organization and in many cases the single
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most valuable assets. This platform for the

best brands in thus recognizing the success of
business community of Bangladesh and
portraying their achievements in brand
building. The Best Brand Award event was
arranged to honor the leading brands in
Bangladesh under 33 categories based on a nationwide survey which was carried out by Kantar Millward Brown
Bangladesh. The approach of this research was completely quantitative in which face to face Pen and Paper
Interviews (PAPI) were conducted with a structured questionnaire among randomly selected respondents.
Mr. Subrata Dutta, Head of Human Resources and Mr. Jalil Ahamed Chowdhury, Supply Chain Manager of Bata
Bangladesh received the award on behalf of Bata Shoe Company (Bangladesh) Ltd. in front of invited guests and
media personnel. Other high officials of Bata Bangladesh were also present on the occasion.
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ANUFACTURING
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In our manufacturing operations we undertook some further

restructuring in line with company objectives at the beginning of the
year. As a result, our production 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
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produced 26.6 million pairs of shoes.

ANNUAL REPORT 2016
16
BATA
Chairman's Statement
INDUSTRIALS FOOTWEAR
As one of the largest manufacturers of
safety shoes, bata plays a major role in
safeguarding the health of the worlds
Human Resources
workers. From the heavy duty work boots
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to elegant and sporty footwear, bata
industrial has a wide range of shoes for
every vocation, where safety counts. The
brands exclusive features include; shock
absorbing tunnel system, tritech plus
anti-slip soles, bata cool comfort linings
and integrated tpu toe caps. Harnessing
its global expertise, bataindustrial
Manufacturing
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provides the highest level of protection
while keeping the wearers feet cool and
comfortable while on the job.
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PRODUCT DEVELOPMENT
& MERCHANDISING

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Bata is a vision to be shared. We create, produce, source, distribute and we are comfortable with it. Today,
Bata operates worldwide and recognizes that its customers deserve the reward of wearing shoes that are
both cool and comfortable with wow pricing.
Product Development & Merchandising has been influencing trends and dressing your feet with elegance
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and character throughout the world. It has been the forefront of innovation, not only in the production and

design of news styles, but in the creation of business models that permit a quick response to rapidly
changing markets. Today, Bata offers you a vision of style and fashion to reflect your own image, created
for you as well as with you. Apart from Bata own brands we are strongly affiliated with Global Brands such
as Hush Puppies, Nike, Addidas, and Sketchers.
Combining great-looking style and design with the latest technology, Bata Technology offers the ultimate in
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healthful comfort for mens, children and women. Developed at Batas Shoe Innovation Centre in Europe,
the Technology collection breaks new ground in shoe design, exceeding the expectations of even the most
discriminating customers. We have been working with Technology based renowned company such as HBN
Shoe LLC, Wolverine and so on. From sporty and casual to elegant and formal, from Bata Insolia to Power,
all Technology shoes are made with high-quality material, memory foam and Batas trademark precision.
One of our major strategies of Product Development & Merchandising is to control all aspects of product.
We control where our products are made, how they are made and ensure good and safe working conditions
across our supply chains. At Bata we operate efficient factories around the world, using modern materials
and deploying energy-efficient machineries and manufacturing technologies. Our people are our most
important asset, generating ideas for new manufacturing methods, efficiency gains and better working
conditions. As part of Bata Life they will continue to drive sustainable excellence in the future. Our supply
chains continually adapt to ever-changing markets and opportunities, balancing the traditions of local
manufacturing and sourcing with the commercial benefits of large-scale global sourcing. Our goal is to work
closely with our suppliers to help them meet the same high standards that we set for our own factories. What
matters most for us is that there is a process of continual improvement towards sustainable excellence. 17
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The north star sneaker brand was created in canada in the 1970s, and became an
instant classic beloved by a generation of canadians. The north star collection deliv-
ers fresh designs and quality construction, allowing your feet to remain comfortable
while they express themselves. Dynamic, unconventional, iconic- thats north star.
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Built to suit the true outdoor explorers, weinbrenner embodies the essence of nature,
exploration and leisure. Weinbrenner features heavy duty materials combined with
rugged outsoles to ensure it withstands even the harshest challenges of nature. As a
brand, it holds loyal to its unbroken and unshaken no nonsense and for real
reputation, something that echoes with the true blue explorers it caters to.
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ANNUAL REPORT 2016
18
Bata comfit
promise unmatched
promises
comfort to its custom-
Human Resources
ers. thr
through anatomi-
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cally designed foot-
wear, sosoft uppers and
footbeds featuring
latest cucushioning tech-
nologies, the brand
delivers comfort like
no othe
other. Bata comfit
leverag
leverages chic,
Manufacturing
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contemp
contemporary designs
with its patented
co
comfort technol-
ogy to ensure
the wearer
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and stylish all day
long
long.

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Stylish and colorful shoes for active kids. An international brand, specializing in
childrens footwear, clothes and accessories, which is constantly innovating new

designs and enhancing the quality of its products. Bubblegummers specializes in fun,
fashionable footwear with an emphasis attention to the needs of the growing feet of
the little stars.
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19
Human Resources
We believe that our people and their collective
experience are our biggest assets. Therefore,
ensuring alignment of business goals with people
and performance has been the key focus area of
the Human Resource department in 2016. In
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order to retain the competitive advantage, a
total of 2765 man-days of behavioral and
functional trainings were conducted for
employees of Corporate, Sales channels and
supply chain. The second focus area of HR was to
imbibe a culture of accountability in all layers of the organization thereby bringing a cultural change in the way
that we think and act. KPI based performance management system supported by a new culture of pay for
performance has been introduced for all levels in the leadership team. The third focus area was to imbibe the Quality
culture not only for products but also for all services rendered through re-engineered processes and re-deployed
people for all departments. As a responsible employer the long serving loyal workmen were replaced with their kith
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and kin which ensured continuity of income of their families and also improved productivity of the manufacturing units.
Further, in order to align the leadership team with the strategic goals of the organization an Outbound Training
programme titled Good to Great was conducted for the Managers. This also ensured homogeneity and engaged
leadership to achieve the organizational objectives. A number of employee engagement activities including
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badminton and cricket tournaments, annual picnic, celebration of Bengali New Year and similar were conducted
throughout the year.
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Social Responsibility
orporate
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BCP BANGLADESH ADOPTED A SCHOOL FOR

UNDERPRIVILEGED CHILDREN
In its endeavor to provide consistent and sustainable support and to uphold the BCP conviction of Education for next
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generation, in 2016 Bata Bangladesh, under the aegis of BCP, has adopted a school which works for underprivileged
children named Mojar School which means School of Fun.
As per the memorandum of understanding signed with Mojar
School, Bata Bangladesh will provide infrastructural,
ANNUAL REPORT 2016
educational, volunteering by employees as well as emotional

support to this school.
Mojar School was established on 10 January, 2013 by some

young people whose intention was to teach the street children
about the values of life. The major goals of Mojar School are to
educate the street children, inject humanitarian values in them
and provide shelter to the orphans.
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CELEBRATION OF EID-UL-FITR WITH

BATA ADOPTED SCHOOL
Directors' Report
On 25 June, 2016 a program was arranged at Mojar School to celebrate the
forthcoming Eid-ul-Fitr. Managing Director, Mr. Chitpan Kanhasiri and Finance
Director, Mr. Sohail Aslam along with around 20 volunteers were there at the
school to distribute new dresses and Iftar packet to the children. Speaking on the
occasion Mr. Kanhasiri expressed his utmost pleasure to get to provide a
sustainable and continuous support to those underprivileged children and said, I
am very glad to be part of this celebration which brings smiles to the faces of the
not so fortunate ones
in the society. Weve
adopted the school
and pledge to make it
a sustainable initiative
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which will build the
next generation in
PROVIDING SCHOOL years to come. Im sure
that more and more
SHOES AND DRESS children will join this
school in future. The
TO THE UNDER-PRIVILEGED children were very
CHILDREN
happy to get new
Human Resources
dresses for Eid. One of
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them said, I love my
new dress! On Eid
day I will wear this dress and go to visit my friends. Thank you Bata
CELEBRATION OF INDEPENDENCE DAY WITH

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BATA ADOPTED SCHOOL
On Independence Day an art competition and a culture program were arranged for
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the children of Mojar School. The students were delighted to receive a pack of
Manufacturing
stationeries and refreshment after the program. Three top scorers of the competition
were awarded. 13 BCP volunteers from different departments supported
wholeheartedly to make the program successful. The Managing Director, the
Finance Director and the Head of Human Resources were also present and enjoyed
the program with the children.
SCHOOL SHOE /DRESS & WINTER JACKET FOR THE

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STUDENTS OF BATA ADOPTED SCHOOL

As a part of continuous support to the adopted school on 01 August, 2016 a
program was arranged to provide new school shoes and school dresses to the
students. Along with the shoes and dresses the students were also given a toiletries
kit and taught about the importance of hygiene in daily life. The Managing Director
along the Finance Director and Head of HR was present on the day.
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On 26 December, 2016 the students of Bata Adopted School along with their
teachers were invited to Bata Corporate Office at Tongi to provide jackets for the coming winter season.
CELEBRATION OF VICTORY DAY WITH BATA ADOPTED SCHOOL

To celebrate the glory and pride of Victory Day, Bata Childrens Program team and the top management team went to the Bata
Adopted School at Agargaon, Dhaka on 16 December, 2016. On the day Bata Bangladesh handed over a Laptop and a Projector
to the school. The Head of HR of the company was present there and speaking of the occasion he said, These enthusiastic kids are
our future. Bata Bangladesh will continue its support to the school and bring out the best of the children to make positive
contributions towards sustainable living.
SCHOLARSHIP FOR EMPLOYEES CHILDREN

In its constant effort for development of the future generation every year Bata Bangladesh grant scholarship to the meritorious
children of its permanent unionized employees. In 2016 7(seven) children received the scholarship for achieving outstanding result
in their school secondary examination.
21
mfvcwZi fvlY 2016 Chairman's Statement 2016
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Rajeev Gopalakrishnan
Chairman
wcq kqvinvvie`, Honourable Shareholders,

evUv my Kvvwb (evsjv`k) wjwgUWi cwiPvjKgjxi c _K 45Zg It is my immense pleasure to take the opportunity on behalf of the
evwlK mvaviY mfvq AvMZ mKjK ^vMZ RvbvZ ci Ges GKB mv_ Board of Directors of the company to welcome you to the 45th Annual
Kvvwbi mvweK Aev, 31 wWmî 2016 ZvwiL ch eQii
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General Meeting and present to you the companys overview,
cwiPvjKgjxi cwZe`bmn Avw_K weeiYx I wbixKì cwZe`b Directors Report together with the Financial Statements and Auditors
Avcbvì mvgb Zzj aiZ ci AZ Avbw`Z eva KiwQ| Report thereon, for the year ended 31 December 2016.
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Our vision is to maximize the customers satisfaction. To carry forward
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this commitment, The Bata Bangladesh team are imbued with the
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highest degree of passion and vigour to cater to the customers lifestyles.
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The new ranges of footwear offerings of your company are
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comfortable and stylish at a wow price for the whole family and also
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targeted to appeal to the young generation who care for style with
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comfort.
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This is the reason that we have been awarded the best brand in the
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footwear category consecutively for 4th year in Bangladesh.
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Moreover, your company has been classified as a Rocket (rapid
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rising) as per discrimination matrix of Bata Shoe Organization (BSO)
RyZv Kvvwb wnme weePbv Kivq Avgiv Mievw^Z eva KiwQ Ges
worldwide. Thanks to all for making us proud as leader.
msw mKjK abev` RvbvwQ| The year of 2016 was, indeed, an eventful year in many respects.
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Despite scattered signs of improvement, the world as well as national
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economic situation, prospects and menace of growing terrorism
Dbqb I mebvK Pvji gyL `vuo KwiqQ|
continued to be challenging.
ZviciI 2016 mvj Avcbvì Kvvwb jYxq mvdj ARb KiQ| At the close of the year, your company recorded a profit before tax of
GeQi Kvvwb Ki c~eeZx 1,423 wgwjqb UvKv gybvdv KiQ hv MZ Tk 1,423 million, an impressive increase of Tk 216 million which is
eQii Zzjbvq 216 wgwjqb UvKv hv kZKiv wnme 18% ewk| 18% more than last year. Overall, your company has put an all-out
mvgwMKfve Avcbvì cwZvb Zvi cavb cavb Avw_K m~PKmg~n mgybZ effort to maintain and develop its major financial indicators.
ivLv Ges GKB m Zv DbxZ Kivi Rb mekw wbqvM KiQ| Total turnover of Tk. 8,785 million representing an increase of more
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2016 mvj Kvvwbi gvU weq wQj 8,785 wgwjqb UvKv hv MZ eQii than 3% against last year. Nevertheless, to say that company has
Zzjbvq 3% ewk| Avcbviv wbq AeMZ AvQb h, MZ eQii AvM gvm endure a loss of indefinite retail days due to closure of Bashundhara
emyiv kwcs gji fqven AwMKv mg Zjvq AewZ evUv evsjv`ki Mall in the month of August after fire occurrence, where one of our
meenr `vKvb AvswkKfve cyo hvq| Avi G KviY KvvwbK `xNw`bi Hushpuppies store was totally destroyed at level 6th and our largest
LyPiv weqi wZ enb KiZ nqQ| ZvQvov, emyiv gji l Zjvq store in the country at level 7th was partly impaired.
AewZ "Hush Puppies" `vKvb AwMKv m~Y cyo MQ dj Constantly monitoring of productivity at all levels, competitive buying
Avgvì LyPiv weq eZgvbI e iqQ|
ANNUAL REPORT 2016
of highly consumed material and strict control over the consumption of

cwZwbqZ mei Drcv`bkxjZv cheY Kiv nQ, cwZhvwMZvg~jK raw materials and other cost of production offered us an edge to
g~j AwaK eeZ KvuPvgvj q, KvuPvgvji mywbqwZ eenvi Ges improve the gross margins as compared to the last year. On the other
Drcv`bi mv_ RwoZ Abvb LiPmg~ni mylg wbqYi dj MZ eQii hand, massively increased operating cost such as, continual upward
Zzjbvq gvU gybvdv ew cqQ| Abw`K eemv cwiPvjbvMZ LiP evcK rentals demand, along with massive advance payments from
ew cqQ| gvMZ `vKvb fvov ew, `vKvb gvwjKMY KZK AwaK nvi landlords, burden of differential VAT on commercial rentals by the
AwMg fvov MnY, evwYwRKfve eeZ mwi Dci miKvi KZK Government and increased utilities cost taper off the bottom line.
AvivwcZ fvUi evSv Ges wewfb cwimevi g~jew gybvdvK euvavM
KiQ|
The retail channel underwent both phases of consolidation and
expansion. Ten smaller stores which did not generate the required
22
Corporate Governance
LyPiv weq Pvbj GKxKiY I mmviY Dfq B DjLhvM returns were closed. At the same time, eleven large format profitable
cqvRbxq eev Mnb Kiv nqQ| 10wU AcvKZ QvU `vKvb KvwLZ stores were opened and nine strategic stores at the key locations were
weq bv nIqvq Zv e Ki Ìqv nqQ| cvi, AZ jvfRbK ne renovated and upgraded to reflect the improved version of the
weePbvq 11wU en`vKvi `vKvb Lvjv nqQ Ges `ki iZc~Yvb marketing concepts.
AewZ 9wU `vKvbK DbZ wecYb aviYvi Kkj wnme mmviY I
msviKvh Pvjvbv nqQ|
Wholesale business in the domestic market now a days is very
competitive and credit driven as influx of both local and cross border
`ki AfixY cvBKvix evRvi weq eZgvb mgq LyeB cwZhvwMZvg~jK players are going on with low priced merchandize. At the cost of
nIqvq wWjviì wbKU cYmvgMx evKxZ weq KiZ nQ| `ki extended credit, resulting high level of receivables, business can be
AfixY cvBKvix evRvi wbewZ I AwbewZ AmsL `kxq Drcv`K Ges
Directors' Report
boosted at any point of time, but this may burdened the due
`ki mxgv GjvKv w`q Avmv Kg g~ji RyZvmvgMxi chv mieivn obligations, influence business expansion and adversely affect the
cvBKvix evRviK AwwZkxj Ki ZzjQ| ewaZ FY mxgvi (wWU wjwgU)
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cash inflows. Your management is well aware of the situation and
KviY wWjviì wbKU cvIbvi cwigvY eo MQ| evKxi gvag wew initiatives in this regard are in place such as new range at a very
evoZ cvi wK Gjv Kvvwbi evaevaKZv, eemvwqK mmviYK competitive price.
cfvweZ Ges bM` A_i AtcevnK fxlYfve evavM KiQ| Avcbvì
Awf eevcbv KZc wbwZfve G evcvi AeMZ AvQb Ges Gi Rb
Your company believes on maintaining its leadership in the footwear
industry in terms of customer service. In order to foresee the future
AZ cwZhvwMZvg~jK g~j evRvi ek wKQz RyZvmvgMx Avbvi D`vM demand launching of E commerce online buying facility since last
wbqQb| quarter of 2015. The company is being benefited remarkably from
Avcbvì Kvvwb `ki cv`yKv wk Zvi bZZ ai ivLvi cvkvcvwk this channel. The brand loyalty programme is also in place, which is
MvnKì mevg mev c`vb I mwZ wekvm Ki| fwelZ Pvwn`vi K_v
providing excellent opportunity to our valued customers to avail
fe 2015 mvji kl cvwK Avcbvì Kvvwb AbjvBb wfwK weq maximum discount and exciting prizes on future shopping.
mev (B-Kgvm) Pvjy KiQ Ges GB Pvbj Kvvwbi weq GLb
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In our manufacturing operations we under took new initiatives to
DjLhvMfve Ae`vb ivLQ| B-Kgvmi cvkvcvwk ev jqvjwU introduce the supply chain concept. The objective was to improve the
KvhgI GKwU wekl vb jvf KiQ| GB Kvhg mvwbZ MvnKì quality, productivity and timely distribution of merchandize at store
eZgvb qi wecixZ fwelr qi mevwaK Qvo Avi AvKlYxq levels. Your management is pleased to notify the remarkable
cyivi cvwZ mnqZv Kie| achievements in all these areas for better product and services to our
Avgvì mgM Drcv`b Kvhg mvcvB PBb (Supply Chain) aviYv Pvjy valued customers. Further, as a company prudent policy to support
d
Kivi Rb bZzb D`vM MnY KiwQ| Gi Dk wQj cYi YMZ gvb I small associated business units (ABUs) which involved the local
Drcv`bkxjZv ew Ges mgqgZ cYmvgMx weqK` cuQvbvi wbqZv| community to provide them with jobs remained in place.
Avcbvì eevcbv KZc mvwbZ MvnKì gvbmZ cY Ges mev Aggressive media campaigns, in-store display and joint promotions
c`vbi j Clbxq mvdj ARb KiQ| Kvvwbi gwjK bxwZgvjv
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with country renowned brands were conducted at various occasions
Abyhvqx QvU QvU mnhvMx eemvwqK BDwbU (Associate Business
Human Resources
during the year to support our leadership position, stimulate sales
Unit)-K Kvvwbi mv_ GK hy KiQ Ges GZ Zvì AbKi during peak selling periods and provide opportunity to enhance our
Kgmsvbi myhvM Ki w`qQ| existing and new branding sequencer.
evRvi Avgvì bZZ my-msnZ Kiv, chv weq Ges Avgvì eZgvb I Your company has effective working capital management system in
bZzb evmg~ni mv_ Zvì cwiPq Kwiq Ìqvi Dk eQiRyo place whereby all assets and liabilities are projected on regular basis.
wewfb cPvi gvag I weqK`mg~n Ges `ki weLvZ evjvi mv_ Receivables from dealers and ready goods inventory remained on
h_ cPviYv Pvjvbv nq| higher side at year end as compared to last year. Management has
Avcbvì KvvwbZ GKwU KvhKix PjwZ g~jab eevcbv Pvjy iqQ,
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very close eyes on these areas and quit sure to be in line with planning
hvi gvag mKj mw I `vqmg~n wbqwgZfve cheY Kiv nq| G eQi by seeing subsequent recoveries from the dealers and clearance of
wWjviì `bvi cwigvY Ges Zix cYi gRy` MZ eQii Zzjbvq GKUz end stock. Another objective is to ensure careful utilization of
ewk| eevcbv KZc cwiKbv Abyhvqx cvIbv Av`vq Ges Zix cYi companys liquid resources, the trade-off among dividend pay out to
gRy` weq Kivi welq wekl `w ivLQ| eevcbv KZc Kvvwbi the shareholders, cost advantage of future raw material purchases
Manufacturing
Zvij Aevi w`K bRi ivLQ, Avi mZKZvi mv_ Zvi eenvi wbwZ
and accumulation of resources for future investment to meet demand
KiQ| kqvinvviì jfvsk cwikva, fwelZ KvuPvgvj q myweav,
and counter competition. The Board is satisfied that there are no short
fwelZi wewfb Pvwn`v I eemvwqK cwZxì cvv cwZhvwMZv
or long term financial constraints at the close of the period.
gvKvejvi Rb m` _vKv cqvRb| cwiPvjKgjx AviI m h, eQi
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To ensure sustainable and consistent growth, Board of Directors and

kl Kvvwbi `xNgqv`x ev mgqv`x Kvb Avw_K `bv bB| management team, along with the global guideline has developed
Kvvwbi mwnZ mwZc~Y DbwZ wbwZ Kivi Rb Avcbvì
sound risk management policies, framework and internal controls to
cwiPvjKgjx I eevcbv KZc evUv my AMvbvBRkb (BSO)-Gi
safeguard shareholders investments and the companys assets. All these
AvRvwZK w`K wb`wkKv I gvb Abyhvqx hywmZ SuywK eevcbv bxwZ

polices, framework and internal control is reviewed by the Board via
DbZ KiQ, hvi gvag kqvinvviì wewbqvM I Gi AfixY-wbqY

Audit Committee. Further, operations review team consisting of other
Kvvwbi mwi iK wnme KvR Kie| GB mg bxwZgvjv, KvVvgv

BSO companies members is also reviewing all these areas once in a
Ges AfixY-wbqY bxwiv KwgwUi gvag cwiPvjKgjxi mfvq

couple of year to ensure the adequacy of these check and balances.
chvjvwPZ nq| ZvQvov evUv my AMvbvBRkbi Abvb Kvvwbi m`mì To developed and offered international standard of services to the
mg^q MwVZ bxwiv cwZwbwa `j `yB eQii ga b~bZg GKevi cwZwU customers with full satisfaction is very challenging. Keeping this
welq bxwiv I chvjvPbv Kib| challenge in view, we have focused on the development of sales staff
MvnKì AvRvwZK gvb mb cY mev Ges mw c`vb Kiv LyeB

with a programme Passion to serve all over the country. In other
Pvjws| GB PvjwU weePbvq iL "Passion to Serve"

operational areas we focused on best HR practices. To this end
Kvhgi gvag `kevcx weqKgxì gvb Dbqb gbvwbek KiwQ|

induction of fresh blood and retention of competent personnel was our
number one priority.
23
ZvQvov Abvb Kvhg Avgvì miv gvbem` Dbqbi Dci `w wQj| With a view to improving the professional skills of our employees 1,667
bZzb bZzb ` Kgxì wbqvM I hvM Kgxì KvR envj ivLv wQj personnels both from field staff or otherwise participated in local in-
Avgvì c_g AMvwaKvi| house courses managed by training department and 8 executives
Avgvì Kgxì ckvMZ `Zv ewi j gvV chvqi 1,667 Rb participated in overseas training programmes and seminars in 2016 to
KgxK Kvvwbi cwkY wefvM cwiPvwjZ vbxq AfixY Kvm cwkY maintain their competitive edge by widening their knowledge of leather,
Ìqv nq Ges 8 Rb wbevnx 2016 mvj Pvgov, PvgovRvZ cY Drcv`b, footwear manufacturing, marketing and merchandising.
evRviRvZKiY, gvPvBwRs vbewi j `ki evBi wewfb cwkY Your company is much conscious about its responsibilities towards
Kgm~wP Ges mwgbvi AskMnY Kib| community of the country under the CSR programme. Some part is
Avcbvì cwZvb KcviU mvgvwRK `vqeZv Z_v wm.Gm.Avi. Kvhgi being covered by donating shoes to unprivileged children, awarded
Aaxb mgvRi cwZ Zvi `vwqZi evcvi LyeB mPZb| wm.Gm.Avi. scholarship program to meritorious children of the employees and
Kvhgi Ask wnme mgvRi myweavewZ wcwQq cov AenwjZ wkì
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blood donation program for children suffering from diseases like
ga webvg~j RyZv I wkvmvgMx weZiY KiQ, cwZvbi Kgxì leukaemia, dengue etc in the year 2016.
gavex mvbì ga Qvew Pvjy KiQ Ges wjDKwgqv, Wymn wewfb
ivM Avv wkì mnvqZvq 2016 mvj GKwU ^Qvq i`vb Kgm~Px
I am pleased to inform you that your company has adopted one
AvqvRb Ki|
School Named MOJAR School, Agargaon Slum Area Branch in
Dhaka under the Bata Children Programme which is also covered
Avcbviv Rb Lywk neb h, Avcbvì cwZvb "evUv wPjWbm" cvMvgi under CSR initiatives worldwide. Your company took the whole
Aaxb XvKvi AvMviMvuIqi ew GjvKvq "gRvi BkKzj" bvg GKwU zji responsibility of infrastructure development, and other monthly
mKj aiYi `vwqZ MnY KiQ Ges hv wekevcx evUvi wm.Gm.Avi. Gi running expenses of that project. Presently enrolled forty students in
Aaxb Avbvi D`vM MnY Kiv nqQ| Avcbvì cwZvb H zji mg the primary section with four teachers. Very much optimistic that in the
`vwqZ MnY Kivi cvkvcvwk H zji meaiYi AeKvVvgv Dbqb Ges cwZ coming period this project will be exemplary in the country.
gvmi mKj eq enb KiQ| eZgvb mLvb cv_wgK i PwjkRb
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wkv_xi cvkvcvwk PviRb wkK iqQb| Avgiv fxlb Avkvev`x fwelZ
As at 31December 2016, a total of 1671 people were employed by
GB cKwU mviv`k GKwU D`vniY mw Kie|

your company. To uphold team spirit, integrity and harmonious
industrial relations, your company organised, among other
2016 mvji 31 wWmî ZvwiL ch Avcbvì cwZvb 1,671 Rb programmes, an annual picnic and cultural show and sports during
KgiZ wQjb| ckv`vwiZ, wUg-wwiU, PvwiwK `pZv Ges kvwc~Y wk the year. We also continued to award Employee of the Month
mK eRvq ivLvi Rb wewfb KgKvi ga evwlK ebfvRb, mvswZK
d
Abyvb I Ljvayjvi AvqvRb Ki| Avgiv Kgxì ga KvRi AvMn ew
certificates which provided due recognition to deserving employees.
j cwZgvm "gvmi miv Kgx" wbevPb I Zvi ^xKwZ mic mb` weZiY
Your companys shares of a nominal value of Tk. 10.00 were traded
AevnZ iLwQ|
at Tk. 1,142.00 on the Dhaka Stock Exchange and Tk. 1,162.90 on
2016 mvji 29 wWmî ZvwiL Avcbvì Kvvwbi 10 UvKvi cwZwU

the Chittagong Stock Exchange respectively on 29 December 2016. In
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kqvi XvKv K GKP 1,142.00 I PMvg K GKP 1,162.90
2016 your company contributed Tk 2,116 million to the countrys
UvKvq q-weq nq| 2016 mvj Avcbvì cwZvb RvZxq KvlvMvi

National Exchequer.
AvqKi, fvU Ges Abvb Ki wnme 2,116 wgwjqb UvKv c`vb KiQ| Your Board continues its intention to recommend the payment of
Avcbvì cwiPvjKgjx memgq Kvvwbi Avw_K gybvdv I Avw_K

dividends commensurate with the profitability and sustainability of the
wwZZvevi Dci wfw Ki mwZc~Y jfvsk Nvlbv Kib| GiB

companys financial position. The Board has, therefore, proposed for
avivevwnKZvq Avcbvì cwiPvjKgjx 2016 mvj 10 UvKv kqvi cwZ

approval at the Annual General Meeting the payment of a final
bM` 22.50 UvKv wnmve AeZxKvjxb jfvsk Abygv`b KiQb hv

dividend of Tk 10.50 per share which, together with the interim
wWmî gvmB cwikva Kiv nqQ Ges 10.50 UvKv nvi P~ov jfvsk
dividend of Tk 22.50 per share paid in December 2016, will make a
GB evwlK mvaviY mfvq Abygv`bi Rb mycvwik KiQb| dj 31

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total dividend of Tk 33.0 per share for the financial year ended 31
wWmî 2016 mgv eQi kqvi cwZ gvU bM` jfvski cwigvb ùvove
December 2016.
33.00 UvKv| In accordance with the Articles of Association of the company, all the
Kvvwbi msNwewa Abyhvqx eevcbv cwiPvjK wg. wPZcvb Kvbnvwkwi Qvov

directors, except the Managing Director, Chitpan Kanhasiri, retire at
Abvb cwiPvjKe` GB evwlK mfvq Aemi Mnb Kijb Ges hvM weavq
the Annual General Meeting and, being eligible offer themselves for
cyYtwbevPbi Rb cv_x njb|

re-election.
Avgvì mKj KgKv evUv my AMvbvBRkb (BSO)-Gi AevnZ mnvqZv

Despite continuing support on all areas we have from BSO worldwide
cq AvmwQ| Zv mZI vbxq eemvwqK m`vq I mswk KZci mv_

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Your Company has also very interacting role with the local business
Avcbvì cwZvbi LyeB fvj cviwiK my-mK iqQ|

community and concerned authorities.
Avmb eQiwUK Avgiv GKUv Pvj wnme wbqwQ| G eQi wewfb

We have taken the coming year as a challenge with the vision to
Knvviì gybvdv ewmn eemv cwiPvjbvi mKj KkjMZ

increase the stakeholders value and be valued as a compliant
cwiKbv MnY Kivi wPvfvebv iqQ|

organization by adopting new strategic plans in all areas of
operations.
cwikl, Avwg cwiPvjKgjxi c _K Kvvwbi cwZ AevnZ mg_b
ANNUAL REPORT 2016
I mnhvwMZvi Rb Avgvì mvwbZ mKj kqvinvvie`, Zv

In conclusion, on behalf of the Board of Directors, I would like to
mvaviY, mieivnKvix, wWjvi, KgKZv I KgPvixe` Ges miKvii wewfb
express my appreciation to you, our shareholders, as well as to our
msv Z_v MYcRvZx evsjv`k miKvii KvQ KZZv cKvk I abev`

valued customers, suppliers, dealers, employees and the Government
vcb KiwQ|
of the Peoples Republic of Bangladesh for the support and
cooperation extended to the Company.
ivRxf MvcvjvKvb Rajeev Gopalakrishnan

Pqvigvb Chairman
27 Gwcj 2017 27 April 2017
24
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d .c
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1525
Directors' Report 2016

Your Directors have pleasure in submitting their Report and Audited Financial Statements of the Company for
the year ended 31 December 2016 along with the preceding five years as follows:
Industry Outlook
The footwear sector in the country witnessed a moderate growth during the year. The growth is expected to
remain the same level next year. The Company attained a growth of 3% during the current year. It is expected
that the growth trend will continue under the prevailing market conditions.
Cost of Sales & Profit Margin
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The overall costs of raw materials remain stable internationally. So, the cost of sales has decreased
satisfactorily in 2016 as compared to net turnover due to strict control over the consumption of raw materials
and other cost of production. Consequently the gross profit has increased over that of 2015.
Key Operating & Financial Information

Your Directors have pleasure in submitting the key operating and financial data of the Company for the year
ended 31 December 2016 along with the preceding five years below:
Financial results
Net profit before tax

Provision for tax
Net profit after tax

d .c 2016
Taka
000
1,422,592
379,574
1,043,018
2015
Taka
000
1,207069
375,324
831,745
2014
Taka
000
1,017,920
317,250
700,670
2013
Taka
000
1,153,284
340,200
813,084
2012
Taka
000
971,389
299,473
671,916
2011
Taka
000
793,620
213,003
580,617
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Un-appropriated profit brought forward 2,717,716 2,323,731 2,009,391 1,606,707 313,782 1,075,166
Earlier year Tax adjustment - - (3,240) - - -
Loss on BB Export winding up - - - - (2,791) -
Profit available for appropriation 3,760,734 3,155,476 2,706,771 2,414,792 1,982,907 1,655,782
From which the Directors recommended the following appropriations:

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Final dividend paid (previous year) 143,640 143,640 143,640 143,640 143,640 143,640
Interim dividend paid (current year) 307,800 294,120 239,400 264,760 232,560 198,360
Total dividend 451,440 437,760 383.040 410,400 376,200 342,000
Un-appropriated profit carried forward 3,309,294 2,717,716 2,323,731 2,004,391 1,606,707 1,313,782
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Dividend
For the year ended 31 December 2016 the Board of Directors recommended an interim dividend of Tk. 22.50
per share amounting to Tk 307,800,000 and now recommends a final dividend of Tk. 10.50 per share amounting
to Tk. 143,640,000 thus making a total dividend of Tk. 33 per share amounting to Tk. 451,440,000.
ANNUAL REPORT 2016
Directors Proposed for Re-Election

The Directors retiring as per Article 104 of the Companys Articles of Association are Mr. Rajeev Gopalakrishnan,
Mr. Shaibal Sinha, Mr. Rashidul Hasan and Mr. K M Rezaul Hasanat and being eligible offer themselves for re-
election.
26
Compliance Certificate
Audit Committee Meeting
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 2016. The Company
Secretary was the Secretary of the Committee. The Audit Committee is comprised of:
Mr. Rashidul Hasan Chairman (Independent Director)
Mr. Rajeev Gopalakrishnan Member
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Mr. Chitpan Kanhasiri Member
Mr. Shaibal Sinha Member
Mr. K M Rezaul Hasanat Member
Reports on Activities of the Audit Committee
Directors' Report
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The Audit Committee has performed regularly the following activities:
Oversee the financial reporting.
Monitoring the choice of accounting policies, principles, internal control and risk management process.

d
Oversee performance of statutory auditors.
Reviewing the annual financial statements before submission to the Board for approval.
Reviewing the statement of significant related party transactions.
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The System of Internal Control
The Board of Directors assures the shareholders that the Company has a robust risk management process to
ensure that the system of internal control is sound in design and has been effectively implemented and
monitored. Although it is possible that all risks to the business are not known at present, the Company takes
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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
adequate to address these risks.
Human Resources
Directors Declaration as to Financial Statements
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As part of preparation and presentation of the financial statements, the Directors also report that:
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.
b) Proper books of accounts of the Company have been maintained as required by law.
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.
d) The Financial Statements were prepared in accordance with Bangladesh Accounting Standards (BAS) and
Bangladesh Financial Reporting Standards (BFRS) as applicable in Bangladesh and there has not been any
departure there from.
e) The Managing Director and CFO have certified to the Board that:
27
i) they have reviewed the financial statements and believe:

a) these statements do not contain any materially untrue statement or omit any material fact or
contain statements that might be misleading;
b) these statements together present a true and fair view of the companys affairs and are in
compliance with existing accounting standards and applicable laws.
ii) there are, to the best of their knowledge and belief, no transactions entered into by the company
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during the year which are fraudulent, illegal or in violation of the companys codes of conduct.
Auditors
Rahman Rahman Huq (KPMG) Chartered Accountants, have offered their willingness to be re- appointed as
statutory auditors of the company. The Board recommends their appointment for the year 2017 and to continue
till the next Annual General Meeting.
On behalf of the Board of Directors,
Chitpan Kanhasiri
Managing Director
27 April 2017
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ANNUAL REPORT 2016
28
Pattern of Shareholdings Annexure - 1
Names of the shareholders along with their position of the shares are listed below:
Names of the shareholders Number of % holding
share held
i) Parent/subsidiary/associate/related parties:
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Bafin Nederland (B.V.) 9,576,000 70.000
ii) Directors/CEO/CS/CFO/Audit Head and their
spouses and minor children
Mr. Rashidul Hasan 64 0.00
iii) Executives (Head of Functions) Nil Nil
iv) Shareholders, who hold 10% or more Nil Nil
Directors' Report
v) Others Shareholders, who hold less than 10%
Non-resident shareholders
Local shareholders
Total
Board Meetings
d .c 7,24,973
3,378,963
13,680,000
5.30
24.70
100.00
The Board met 6 (six) times during the year 2016. The Company Secretary and Finance Director were also present
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in the Board meetings. The attendance by each Director is stated below:
Present Directors Name No. of Attendance

Rajeev Gopalakrishnan 6 meetings
Chitpan Kanhasiri 6 meeting
Shaibal Sinha 6 meetings
Rashidul Hasan 6 meetings
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K M Rezaul Hasanat 4 meetings
Human Resources
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29
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
section 2CC of the Securities and Exchange Ordinance, 1969:
(Report under Condition No. 7.00)
Compliance Status
(Put in the Remarks
Condition Title appropriate column) (if any)
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No. Not
Complied Complied
1.0 Board of Directors
1.1 Boards Size
The number of Board Directors should not be less than 5 (five)
and more than 20 (twenty)

Independent Directors
.c
1.2
(i) At least one fifth (1/5) of the total number of directors in
the companys board shall be independent directors.
(ii) a) Who either does not hold any share or holds less than
1% shares to the total paid-up shares of the company;

(ii) b)
d
Who is not a sponsor of the company and is not
connected with the companies any sponsor or director

or shareholder who holds one percent (1%) or more
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share of the total paid-up shares of the company on the
basis of family relationship.
(ii) c) Who does not have any other relationship whether
pecuniary or otherwise, with the company or its
subsidiary/ associated companies or its subsidiary

/associated companies.
(ii) d)
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Who is not a member, director or officer of any stock

exchange?

(ii) e) Who is not a shareholder, director or officer of any
member of stock exchange or an intermediary of the
capital market.
(ii) f) Who is not a partner or an executive or was not a
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partner or an executive during the preceding 3 (three)

years of the concerned companys statutory audit firm.
(ii) g) Who shall not be an independent director in more than
3 (three) listed companies.
(ii) h) Who has not been convicted by a court of competent
ANNUAL REPORT 2016
jurisdiction as a defaulter in payment of any loan to a

bank or a Non-Bank Financial Institution (NBFI).
(ii) i) Who has not been convicted for a criminal offence
involving moral turpitude.
(iii) The independent director(s) shall be appointed by the
board of directors and approved by the shareholders in

the Annual General Meeting (AGM).
30
Audit Committee Report

Compliance Status
(Put in the Remarks
No. Not
Complied Complied
(iv) The post of independent director(s) can not remain Not No such
vacant for more than 90 (ninety) days. Applicable vacancy
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created 2016
(v) The Board shall lay down a code of conduct of all Board
members and annual compliance of the code to be
recorded.
(vi) The tenure of office of an independent director shall be

for a period of 3 (three) years, which may be extended
for 1 (one) term only.
1.3 Qualification of Independent Director (ID)
.c
(i) Independent Director shall be a knowledgeable
individual with integrity who is able to ensure
compliance with financial, regulatory and corporate laws
and can make meaningful contribution to business.
(ii) The person should be a Business Leader / Corporate

d
Leader / Bureaucrat / University Teacher with
Economics or Business Studies or Law background /
Professionals like Chartered Accountants, Cost &
Management Accountants, and Chartered Secretaries.
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The independent director must have at least 12 (twelve)
Directors' Report
years of corporate management / professional
experience.
(iii) In special cases the above qualifications may be Not
relaxed subject to prior approval of the Commission. Applicable
1.4 Chairman of the Board and Chief Executive Officer
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The positions of the Chairman of the Board and the Chief

Executive Officer of the companies shall be filled by different
individuals with defined different roles and responsibilities. The

Chairman of the company shall be elected from among the
directors of the company.
1.5 The Directors Report to Shareholders
(i) Industry outlook and possible future development in the

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industry.
(ii) Segment-wise or product-wise performance.
(iii) Risks and concerns.
(iv) A discussion on Cost of Goods sold, Gross Profit Margin
and Net Profit Margin.
(v) Discussion on continuity of any Extra-Ordinary gain or Not No such
loss. Applicable gain/loss
occurred
(vi) Basis for related party transactions- a statement of all Presented in

related party transactions should be disclosed in the
the Financial
annual report. Statement
31
Compliance Status
(Put in the Remarks
No. Not
Complied Complied
(vii) Utilization of proceeds from public issues, rights issues Not During 2016
and / or through any others instruments. Applicable there were no
public or right
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issue of share
(viii) An explanation if the financial result deteriorate after the Not
company goes for Initial Public Offering (IPO), Repeat Applicable
Public Offering (RPO), Rights Offer, Direct Listing, etc.
(ix) If significant variance occurs between Quarterly Not No such
Financial performance and Annual Financial Statements Applicable variance
the management shall explain about the variance on occurred
their Annual Report.
Remuneration to directors including independent
.c
(x)
directors.
(xi) The financial statements prepared by the management of
the issuer company present fairly its state of affairs, the
result of its operations, cash flows and changes in equity.
(xii)
d
Proper books of account of the issuer company have

been maintained.
(xiii) Appropriate accounting policies have been consistently

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applied in preparation of the financial statements and
that the accounting estimates are based on reasonable
and prudent judgment.
(xiv) International Accounting Standards (IAS)/ Bangladesh
Accounting Standards (BAS)/ International Financial
Reporting Standards (IFRS)/ Bangladesh Financial
Reporting Standards (BFRS), as applicable in
Bangladesh, have been followed in preparation of the

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financial statements and any departure there-from has

been adequately disclosed.
(xv) The system of internal control is sound in design and
has been effectively implemented and monitored.

(xvi) There are no significant doubts upon the issuer Ability of the
company's ability to continue as a going concern. If the company to
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issuer company is not considered to be a going continue as

concern, the fact along with reasons thereof should be going concern
disclosed.
(xvii) Significant deviations from the last years operating Not
results of the issuer company shall be highlighted and
Applicable
the reasons thereof should be explained.
ANNUAL REPORT 2016
(xviii) Key operating and financial data of at least preceding 5

(five) years shall be summarized.
(xix) If the issuer company has not declared dividend (cash Not
or stock) for the year, the reasons thereof shall be given. Applicable
(xx) The number of Board meetings held during the year and
attendance by each director shall be disclosed.
32

Compliance Status
(Put in the Remarks
No. Not
Complied Complied
(xxi) The pattern of shareholdings and name wise details disclosing the aggregate number
of shares:
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(xxi) a) Parent/Subsidiary/Associated Companies and other
related parties (name wise details).
(xxi) b) Directors, Chief Executive Officer, Company Secretary,
Chief Financial Officer, Head of Internal Audit and their
spouses and minor children (name wise details).
(xxi) c) Executives (top five salaried employees of the company,

other than the Directors, Chief Executive Officer,
Company Secretary, Chief Financial Officer and Head of
Internal Audit).
(xxi) d)
(xxii)
(xxii) a)
(xxii) b)
information to the Shareholders:
d
A brief resume of the director.
.c
Shareholders holding ten percent (10%) or more voting
interest in the company (name wise details).
Nature of his/her expertise in specific functional areas.

In case of appointment/re-appointment of a Director the Company shall disclose the following

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(xxii) c) Names of companies in which the person also holds the

Directors' Report
directorship and the membership of committees of the
board.
2.0 Chief Financial Officer (CFO), Head of Internal Audit and Company Secretary (CS)
2.1 The company shall appoint a Chief Financial Officer (CFO), a Head
of Internal Audit (Internal Control and Compliance) and a Company
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Secretary (CS). The Board of Directors should clearly define

respective roles, responsibilities and duties of the CFO, the Head of
Internal Audit and the CS.
The CFO and the Company Secretary of the companies shall
2.2
attend the meetings of the Board of Directors.
3.0 Audit Committee
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(i) The company shall have an Audit Committee as a sub-

committee of the Board of Directors.
(ii) The Audit Committee shall assist the Board of Directors
in ensuring that the financial statements reflect true and
fair view of the state of affairs of the company and in
ensuring a good monitoring system within the business.
(iii) The Audit Committee shall be responsible to the Board

of Directors. The duties of the Audit Committee shall be
clearly set forth in writing.
3.1 Constitution of the Audit Committee
The Audit Committee shall be composed of at least 3
(i)
(three) members.
33
Compliance Status
(Put in the Remarks
No. Not
Complied Complied
(ii) The Board of Directors shall appoint members of the
Audit Committee who shall be directors of the company
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and shall include at least 1 (one) independent director.
(iii) All members of the audit committee should be
financially literate and at least 1 (one) member shall
have accounting or related financial management
experience.
(iv) When the term of service of the Committee members
expires or there is any circumstance causing any
Committee member to be unable to hold office until
expiration of the term of service, thus making the Not
There was no
.c
number of the Committee members to be lower than the Applicable
such vacancy
prescribed number of 3 (three) persons, the Board of
created
Directors shall appoint the new Committee member(s)
to fill up the vacancy(ies) immediately or not later than 1
(one) month from the date of vacancy(ies) in the
Committee to ensure continuity of the performance of
d
work of the Audit Committee.
(v) The company secretary shall act as the secretary of the
Committee.
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(vi) The quorum of the Audit Committee meeting shall not

constitute without at least 1 (one) independent director.
3.2 Chairman of the Audit Committee
(i) The Board of Directors shall select 1 (one) member of

the Audit Committee to be Chairman of the Audit
Committee, who shall be an independent director.
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(ii) Chairman of the audit committee shall remain present in

the Annual General Meeting (AGM).
3.3 Role of Audit Committee
(i) Oversee the financial reporting process.
(ii) Monitor choice of accounting policies and principles.
(iii) Monitor Internal Control Risk management process.
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(iv) Oversee hiring and performance of external auditors

(v) Review along with the management, the annual
financial statements before submission to the board for
approval.
(vi) Review along with the management, the quarterly and
ANNUAL REPORT 2016
half yearly financial statements before submission to the

board for approval.
(vii) Review the adequacy of internal audit function.
(viii) Review statement of significant related party
transactions submitted by the management.
(ix) Review Management Letters/ Letter of Internal Control
weakness issued by statutory auditors.
34

Compliance Status
(Put in the Remarks
No. Not
Complied Complied
(x) When money is raised through Initial Public Offering
(IPO)/Repeat Public Offering (RPO)/Rights Issue the
om
company shall disclose to the Audit Committee about
the uses/applications of funds by major category
(capital expenditure, sales and marketing expenses, Not
Applicable
working capital, etc), on a quarterly basis, as a part of
their quarterly declaration of financial results. Further,
on an annual basis, the company shall prepare a
statement of funds utilized for the purposes other than
those stated in the offer document/prospectus.
3.4 Reporting of the Audit Committee
.c
3.4.1 Reporting to the Board of Directors
(i) The Audit Committee shall report on its activities to the
Board of Directors.
(ii) The Audit Committee shall immediately report to the Board of Directors on the following
findings, if any:-
(ii) a)
d
Report on conflicts of interests. Not
Applicable
(ii) b) Suspected or presumed fraud or irregularity or material Not
defect in the internal control system. Applicable
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Directors' Report
(ii) c) Suspected infringement of laws, including securities Not
related laws, rules and regulations. Applicable
(ii) d) Any other matter which shall be disclosed to the Board Not
of Directors immediately. Applicable
3.4.2 Reporting to the Authorities:

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If the Audit Committee has reported to the Board of Directors about

anything which has material impact on the financial condition and
results of operation and has discussed with the Board of Directors
Not
and the management that any rectification is necessary and if the Applicable
Audit Committee finds that such rectification has been
unreasonably ignored, the Audit Committee shall report such
finding to the Commission, upon reporting of such matters to the
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Board of Directors for three times or completion of a period of 6

(six) months from the date of first reporting to the Board of
Directors, whichever is earlier
3.5 Reporting to the Shareholders and General Investors:
Report on activities carried out by the Audit Committee, including

any report made to the Board of Directors under condition 3.4.1 (ii)
above during the year, shall be signed by the Chairman of the

Audit Committee and disclosed in the annual report of the issuer
company.
35
Compliance Status
(Put in the Remarks
No. Not
Complied Complied
4.0 External /Statutory Auditors should not engage in the following services
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(i) Appraisal or valuation services or fairness opinions.
(ii) Financial information systems design and
implementation.
(iii) Book-keeping or other services related to the

accounting records or financial statements.
(iv) Broker-dealer services.
.c
(v) Actuarial services.
(vi) Internal audit services.
Any other service that the Audit Committee determines.
(vii)
(viii)
d
No partner or employees of the external audit firms shall
possess any share of the company they audit at least
during the tenure of their audit assignment of that
company.
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Audit/certification services on compliance of corporate
(ix)
governance as required under clause (i) of condition No. 7
5.0 Subsidiary Company
(i) Provisions relating to the composition of the Board of

Not
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Directors of the holding company shall be made

Applicable
applicable to the composition of the Board of Directors
of the subsidiary company.
(ii) At least 1 (one) independent director on the Board of

Directors of the holding company shall be a director on Not
Applicable
the Board of Directors of the subsidiary company.
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(iii) The minutes of the Board meeting of the subsidiary

Not
company shall be placed for review at the following Applicable
Board meeting of the holding company.
(iv) The minutes of the respective Board meeting of the

ANNUAL REPORT 2016
holding company shall state that they have reviewed the Not
Applicable
affairs of the subsidiary company also.
(v) The Audit Committee of the holding company shall also

review the financial statements, in particular the Not
investments made by the subsidiary company. Applicable
36

Compliance Status
(Put in the Remarks
No. Not
Complied Complied
6.0 Duties of Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
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The CEO and CFO shall certify to the Board that:-
(i) They have reviewed financial statements for the year and that to the best of their knowledge and belief:
These statements do not contain any materially untrue

(i) a)
statement or omit any material fact or contain
statements that might be misleading;
These statements together present a true and fair view
(i) b)
of the companys affairs and are in compliance with
existing accounting standards and applicable laws.
7.0
(ii)
(i)
d .c
There are, to the best of knowledge and belief, no
transactions entered into by the company during the
year which are fraudulent, illegal or violation of the
companys code of conduct.
Reporting and Compliance of Corporate Governance
The company shall obtain a certificate from a practicing
Professional Accountant/ Secretary (Chartered Accountant/
Cost and Management Accountant/ Chartered Secretary)

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Directors' Report
regarding compliance of conditions of Corporate
Governance Guidelines of the Commission and shall send
the same to the shareholders along with the Annual Report
on a yearly basis.
(ii) The directors of the company shall state in the directors'
report whether the company has complied with these
conditions.
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37
Certificate on Compliance with Conditions of Corporate Governance Guidelines

to the Shareholders of Bata Shoe Company (Bangladesh) Limited
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(Issued under Condition No. 7 (i) of Corporate Governance Guidelines of BSEC vide notification no.
SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012)
We have examined the compliance with conditions of the corporate governance guidelines by Bata Shoe Company
(Bangladesh) Limited (herein after referred to the Company) for the year ended 31 December 2016. These
conditions of corporate governance were issued by the Bangladesh Securities and Exchange Commission (BSEC)
vide its notification no. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012 and SEC/CMRRCD/2006-
.c
158/147/Admin/48 dated 21 July 2013.
Those charged with governance and the management of the Company is responsible for complying with the
conditions of corporate governance guidelines were issued by the Bangladesh Securities and Exchange
Commission (BSEC). Those charged with the governance of the Company are also responsible for stating in the
d
Director's report whether the Company has complied with the conditions of corporate governance guidelines.
Our responsibility is to provide a certificate about whether the Company is in compliance with the said conditions of
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corporate governance based on our examination. Our examination for the purpose of issuing this certificate was
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
statement on the basis of evidence gathered and representation received. It is neither an audit nor an expression
of opinion on the financial statement of the Company.
To the best of our information and according to the explanations provided to us by the Company, we certify that, the
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company has complied for the year ended 31 December 2016 with the conditions of corporate governance
stipulated in the above mentioned guidelines issued by BSEC dated 07 August 2012.
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Arun Kumer Kundu, FCA

Managing Partner
Dated, Dhaka; Arun & Company
30 April 2017 Chartered Accountants
ANNUAL REPORT 2016
Office: House No. 558 (4th Floor), Kazipara, Kafrul, Mirpur, Dhaka-1216
Cell: 01819 40 17 24, E-mail: arunrrh@gmail.com
38
Auditors Report
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 2016. The Finance Director, Company Secretary and the

Head of Internal Audit were invitees to the Audit Committee meeting.
Purpose of the Audit Committee
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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.
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
in a proper and financially appropriate manner.
Major Responsibilities of the Audit Committee

In 2016, the Audit Committee reviewed its terms of reference in line with requirements of Bangladesh Securities and
Exchange Commissions (BSEC) notification on corporate governance. The Committee carried out its duties in
accordance with the terms of reference of the Audit Committee. Some of the major responsibilities of the Audit
.c
Committee are as follows:
Review the annual, half-yearly and quarterly financial statements and other financial results, and upon its
satisfaction of the review, recommend the same to the Board.
Review the adequacy and effectiveness of financial reporting process, internal control system, risk
management, auditing matters, and the companys processes for monitoring compliance with laws and
d
regulations and the Codes of Conduct.
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 non-audit
services performed by statutory auditors.
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Exercise its oversight of the work of Internal Audit department of the company. Review the effectiveness of
Internal Audit function including performance, structure, adequacy of resources, and compliance with
professional standards. Examine audit findings and material weaknesses and monitor implementation of audit
action plans.
Major Activities of the Audit Committee

Reviewed and recommended to the Board the quarterly and annual financial statements for the year ended 31
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December, 2016.
Considered and made recommendation to the Board on the appointment and remuneration of external
auditors, Rahman Rahman Haq., Chartered Accountants for the year 2017.
Reviewed the management letter from external auditors for the year 2016 together with managements
Directors' Report
responses to the findings.
Approved the Internal Audit Plan for 2017, monitored progress and effected revisions when necessary.
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
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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.
Reviewed and received report on the matters as per requirement from the Bangladesh Securities and
Exchange Commission (BSEC).
The above matters are significant recommendations for continuous improvement and therefore duly noted.
Rashidul Hasan
Chairman, Audit Committee
39
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d .c
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ANNUAL REPORT 2016
Statement of Financial Position

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 2016, 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
Auditors Report
accounting policies and other explanatory information.
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Managements responsibility for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with Bangladesh
Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
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
.c
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
d
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.
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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 the Company as at 31 December 2016,
and of its financial performance and its cash flows for the year then ended in accordance with Bangladesh Financial Reporting
Standards.
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Report on other legal and regulatory requirements
In accordance with the Companies Act 1994 and the Securities and Exchange Rules 1987, we also report the following:
a) we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the
purpose of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our
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examination of those books;

c) the statement of financial position and statement of profit or loss and other comprehensive income dealt with by the report
are in agreement with the books of account; and
d) the expenditure incurred was for the purposes of the Companys business.
Dhaka, 27 April 2017 Rahman Rahman Huq

Chartered Accountants
41
Bata Shoe Company (Bangladesh) Limited

Statement of financial position
31 December 31 December
In Taka Note 2016 2015
Assets
Property, plant and equipment 6 985,239,810 1,049,379,561
Prepayments of rent 10.1 141,598,486 106,368,047
Deferred tax assets 7 47,000,000 1,600,000
Non-current assets 1,173,838,296 1,157,347,608
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Inventories 8 2,778,668,413 2,266,352,009
Accounts receivable 9 1,017,812,972 906,907,928
Advances, deposits and prepayments 10 671,646,290 554,607,909
Cash and cash equivalents 11 912,256,111 351,378,131
Current assets 5,380,383,786 4,079,245,977
Total assets 6,554,222,082 5,236,593,585
.c
Equity
Share capital 12 136,800,000 136,800,000
Reserves and surplus 13 3,419,786,430 2,828,208,424
Total equity 3,556,586,430 2,965,008,424
Liabilities
d
Deferred liability 14 280,582,630 177,589,000
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Non-current liabilities 280,582,630 177,589,000
Creditors for goods 15 892,815,692 430,751,625

Creditors for expenses 16 544,205,086 467,139,166
Creditors for other finance 17 373,452,941 312,235,403
Accrued expenses 18 351,210,952 410,874,941
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Unclaimed dividend 80,837,261 75,879,187

Current tax liabilities 19 474,531,090 397,115,839
Current liabilities 2,717,053,022 2,093,996,161
Total liabilities 2,997,635,652 2,271,585,161
Total equity and liabilities 6,554,222,082 5,236,593,585
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The notes on pages 47 to 75 are an integral part of these financial statements.

ANNUAL REPORT 2016
Chitpan Kanhasiri Rashidul Hasan Md. Hashim Reza

Managing Director Director Company Secretary
& GM Finance
As per our report of same date.

42
State of Changes in Equity

Statement of Profit or Loss and other Comprehensive Income
for the year ended 31 December
Revenue 20 8,784,553,317 8,522,801,619

Cost of sales 21 (4,967,238,013) (5,094,404,901)
Statement of profit or loss and

Other Comprehensive income
Gross profit 3,817,315,304 3,428,396,718
Exchange gain 1,500,181 5,239,590
Other income 22 1,789,826 8,259,742
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Administration, selling and distribution expenses 23 (2,347,516,714) (2,195,830,942)
Operating profit 1,473,088,597 1,246,065,108
Finance income 24 27,863,144 28,842,956
Finance expense 25 (3,486,472) (4,309,610)
Net finance income 24,376,672 24,533,346

Profit before contribution to WPPF 1,497,465,269 1,270,598,454
Contribution to workers' profit participation fund 26 (74,873,263) (63,529,923)
.c
Profit before tax 30 1,422,592,006 1,207,068,531
Income tax expense 31 (379,574,000) (375,324,000)
Profit for the year 1,043,018,006 831,744,531
Other comprehensive income, net of tax - -
Total comprehensive income
d 1,043,018,006 831,744,531
Earnings per share: 34.1

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Auditors Report
Basic & diluted earnings per share (par value Tk. 10) in Taka 76.24 60.80

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Chitpan Kanhasiri Rashidul Hasan Md. Hashim Reza

Managing Director Director Company Secretary
& GM Finance
As per our report of same date.

43
ANNUAL REPORT 2016
44
Statement of changes in equity
for the year ended 31 December 2015
Share Reserve on Non- General Retained Total

capital revaluation distributable reserve earnings equity
In Taka of land special reserve
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Balance at 1 January 2015 136,800,000 60,631,183 998,620 48,863,000 2,323,731,090 2,571,023,893

Profit for the year - - - - 831,744,531 831,744,531

Other comprehensive income - - - - - -
Total comprehensive income - - - - 831,744,531 831,744,531
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Transactions with owners of the Company
Contributions and distributions
Interim dividend for the year 2015 - - - - (294,120,000) (294,120,000)
Final dividend for the year 2014 - - - - (143,640,000) (143,640,000)
Total transactions with owners of the Company - - - - (437,760,000) (437,760,000)
Balance at 31 December 2015 136,800,000 60,631,183 998,620 48,863,000 2,717,715,621 2,965,008,424
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Share Reserve on Non- General Retained Total
capital revaluation distributable reserve earnings equity
In Taka of land special reserve
d
Balance at 1 January 2016 136,800,000 60,631,183 998,620 48,863,000 2,717,715,621 2,965,008,424
Profit for the year - - - - 1,043,018,006 1,043,018,006
Other comprehensive income - - - - - -
.c
Total comprehensive income - - - - 1,043,018,006 1,043,018,006
Transactions with owners of the Company
Contributions and distributions
Interim dividend for the year 2016 - - - - (307,800,000) (307,800,000)
Final dividend for the year 2015 - - - - (143,640,000) (143,640,000)
Total transactions with owners of the Company - - - - (451,440,000) (451,440,000)
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Balance at 31 December 2016 136,800,000 60,631,183 998,620 48,863,000 3,309,293,627 3,556,586,430

Notes to the Financial Statements

Statement of cash flows
Cash flows from operating activities

Cash receipts from customers 8,692,242,508 8,071,753,106
Statement of Cash Flows

Cash payments to and on behalf of employees (1,337,587,829) (1,274,021,900)
Cash payments for deferred liabilities 14 (21,687,217) (30,391,821)
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Cash payments to suppliers and contractors for goods and services (5,915,023,559) (5,850,057,590)
Cash generated from operating activities 1,417,943,903 917,281,795
Interest received from STD account 24 9,586,728 5,558,453

Interest paid 25 (3,486,472) (4,309,610)
Income tax paid 19.1 (347,558,749) (326,643,464)
Statement of Changes in Equity

Net cash from operating activities 1,076,485,410 591,887,174
Cash flows from investing activities

Interest received from FDR
Proceed from sales of property, plant and equipment
Acquisition of property, plant and equipment
d
Net cash used in investing activities
.c 24
6.3
6
18,276,416
4,984,993
(92,386,913)
(69,125,504)
18,395,246
2,333,269
(123,036,407)
(102,307,892)

Cash flows from financing activities
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Dividend paid (446,481,926) (430,597,951)
Net cash used in financing activities (446,481,926) (430,597,951)
Net cash increase/(decrease) in cash and cash equivalents 560,877,980 58,981,331
Cash and cash equivalents at 1 January 351,378,131 292,396,800
Cash and cash equivalents at 31 December 912,256,111 351,378,131
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Closing cash and cash equivalents have been arrived at as follows

912,256,111 351,378,131
la
45
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d .c
ab
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Form of Proxy
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.
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2. Basis of accounting
The 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.
The titles and format of these financial statements follow the requirements of BFRSs which are to some extent
different from the requirements of the Companies Act 1994. However, such differences are not material and in the
view of management BFRSs titles and format give better presentation to the shareholders.

Financial Reporting Act 2015 (FRA) has been enacted in the year 2015. Under the FRA, the Financial Reporting
Council (FRC) is to be formed and it is to issue financial reporting standards for public interest entities such as listed
.c
company. As the FRC is yet to be formed and as such no financial reporting standards have been issued as per the
provisions of the FRA, hence, the financial statements of the Company continue to be prepared in accordance with
Bangladesh Financial Reporting Standards (BFRS), the Securities and Exchange rules 1987 and the Companies
Act 1994.
These financial statements were authorised for issue by the Board of Directors at its 232nd meeting held on 27 April
2017.
d
3. Functional and presentational currency
These financial statements are presented in Bangladesh Taka (Taka/Tk.) which is both functional and presentational

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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 20, segment reporting in note 5, related party transactions in
note 37.2 & 37.3 and operating lease payments disclosure in note 38 which have been rounded off to the nearest
thousand Taka and credit facilities available as at 31 December in note 11.1 have been rounded off to the nearest
million Taka.
4. Use of judgments and estimates
In preparing these financial statements, management has made judgments, estimates and assumptions that affect
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the application of Company's 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. Revision to estimates are recognised

prospectively.
A. Judgments
Information about judgments made in applying accounting policies that have the most significant effects on the
amounts recognised in the financial statements is included in the following note:
la
Note 38 Operating leases

B. Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material
adjustment in the year ending 31 December 2016 is included in the following notes:
Note 6 Property, plant & equipment
Note 7 Deferred tax assets (liabilities)
Note 8 Inventories
Note 9 Accounts receivable
Note 14 Deferred liability
Note 19 Current tax liabilities
Note 39 Financial commitments
Note 40 Contingent liabilities
47
Notes to the financial statements (continued)
C. Measurement of fair values
A number of the Companys accounting policies and disclosures require the measurement of fair values, for both
financial and non-financial assets and liabilities.
The Company has an established control framework with respect to the measurement of fair values. Management
has the overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values.
Management regularly reviews significant unobservable inputs and valuation adjustments. If third party information,
such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the
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evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of
BFRS, including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Company uses market observable data as far as
possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows.
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
.c
directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair
value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value
d
hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period
during which the change has occurred.
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5. Operating segments
See accounting policies in note 46(n)
a) Basis for segmentation
The Company has two operating segments, Domestic and Unallocated, which are the company's strategic divisions.
They are managed separately because they require different technology and marketing strategies. For each of the
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strategic divisions, the company's management reviews internal management reports at least on a monthly basis.
Of these two, only domestic segment is reportable. The following summary describes the operations in the
company's reportable segments:
Reportable segments Operations

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Domestic This segment is mainly engaged in manufacturing and marketing of leather,

rubber, plastic and canvas footwear, hosiery and accessories in domestic market.
b) Information about reportable segments

ANNUAL REPORT 2016
Information related to each reportable segment is set out below. Segment profit from operation is used to measure
performance because management believes that this information is the most relevant in evaluating the results of
the respective segments relative to other entities that operate in the same industries.
48
Form of Proxy
Reportable segments
All other
In thousands of Taka Domestic Segments Total
2016
Revenue 8,732,667 51,886 8,784,553

Cost of sales (4,925,754) (41,484) (4,967,238)
Gross profit 3,806,913 10,402 3,817,315
Exchange gain/(loss) - 1,500 1,500
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Other income - 1,790 1,790
Administrative, selling and distribution expense (1,921,606) (425,911) (2,347,517)
Profit from operation 1,885,307 (412,219) 1,473,088
Finance income - 27,863 27,863
Finance expense - (3,486) (3,486)
Contribution to workers' profit participation fund (74,873) - (74,873)
Profit before tax 1,810,434 (387,842) 1,422,592

2015
Revenue
Cost of sales
Gross profit
Exchange gain/(loss)
Other income
d
Administrative, selling and distribution exp.
Profit from operation
.c 8,458,376
(5,057,341)
3,401,035
-
-
(1,661,657)
1,739,378
64,426
(37,064)
27,362
5,239
8,260
(534,174)
(493,313)
8,522,802
(5,094,405)
3,428,397
5,239
8,260
(2,195,831)
1,246,065

ab
Finance income - 28,843 28,843
Finance expense - (4,310) (4,310)
Contribution to workers' profit participation fund (63,530) - (63,530)
Profit before tax 1,675,848 (468,780) 1,207,068
c) Reconciliation of information on reportable segments to BFRS measures

In thousands of Taka Note 2016 2015
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i. Revenue
Total revenue for reportable segments 8,732,667 8,458,376

Revenue for other segments - -
Elimination of inter-segment revenue - -
Total revenue 8,732,667 8,458,376
ii. Operating profit
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Total profit before tax for reportable segments 1,810,434 1,675,848

Profit before tax for other segments (387,842) (468,780)
Elimination of inter-segment profit - -
Amount not related to reported segments - -
Total profit before tax 1,422,592 1,207,068
iii. Amount not related to reportable segments
Technical services fee - -
Unallocated corporate overheads - -
- -
d) Segment assets and liabilities

The necessary information regarding assets and liabilities of operating segments are not separable and individually identifiable
for this purpose. For this reason the assets and liabilities of the respective segments have not been presented here.
49
50
ANNUAL REPORT 2016
6. Property, plant and equipment

See accounting policies in note 46(c)
Furniture, Under
Plant and fixtures and construction
In Taka Freehold land Building machinery Vehicles office equipment (Note 6.2) Total
Cost
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Balance at 1 January 2015 86,057,856 384,079,651 754,890,448 20,751,096 766,421,272 59,367,881 2,071,568,204
Additions - 1,024,912 67,890,434 - 98,412,843 39,969,806 207,297,995
Transfers - - - - - (84,261,588) (84,261,588)
Disposals - - (8,167,993) (6,300,187) (25,238,435) - (39,706,615)

Balance at 31 December 2015 86,057,856 385,104,563 814,612,889 14,450,909 839,595,680 15,076,099 2,154,897,996
Balance at 1 January 2016 86,057,856 385,104,563 814,612,889 14,450,909 839,595,680 15,076,099 2,154,897,996
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Additions - 2,773,578 14,305,063 - 86,248,204 12,811,009 116,137,854
Transfers - - - - - (23,750,941) (23,750,941)
Disposals - - (2,671,610) - (28,144,555) - (30,816,165)
Balance at 31 December 2016 86,057,856 387,878,141 826,246,342 14,450,909 897,699,329 4,136,167 2,216,468,744
Accumulated depreciation
Balance at 1 January 2015 - 189,046,925 475,787,811 18,527,417 330,733,396 - 1,014,095,549
Depreciation for the year - 7,940,511 37,341,058 633,840 78,310,962 - 124,226,371
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Adjustment for disposal/transfers - - (7,311,756) (5,344,187) (20,147,542) - (32,803,485)
Balance at 31 December 2015 - 196,987,436 505,817,113 13,817,070 388,896,816 - 1,105,518,435
Balance at 1 January 2016 - 196,987,436 505,817,113 13,817,070 388,896,816 - 1,105,518,435

Depreciation for the year
Adjustment for disposal/transfers
-
-
8,008,543
-
d 37,420,080
(1,092,164)
633,839
-
102,923,987
(22,183,786)
-
-
148,986,449
(23,275,950)
Balance at 31 December 2016 - 204,995,979 542,145,029 14,450,909 469,637,017 - 1,231,228,934
Carrying amounts
At 31 December 2015 86,057,856 188,117,127 308,795,776 633,839 450,698,864 15,076,099 1,049,379,561
.c
At 31 December 2016 86,057,856 182,882,162 284,101,313 - 428,062,312 4,136,167 985,239,810
The Company revalued its land of Tongi factory at 1979 by Tk. 60,631,183.
Building includes properties at 24 Bangabandhu Avenue, Dhaka which were purchased in 1985 from the Government of Bangladesh at a cost of Tk. 5,344,417. Sale deed
is yet to be executed.
6.1 Allocation of depreciation

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Cost of sales 21.1 36,819,972 36,761,179
Administration, selling and distribution expenses 23 112,166,477 87,465,192
148,986,449 124,226,371
Form of Proxy
6.2 Under construction as follows
31 December 2016
Opening Closing
In Taka balance Addition Transfer Balance

Plant and machinery 4,206,267 12,215,063 (12,285,163) 4,136,167
Furniture for different stores 10,869,832 595,946 (11,465,778) -
Total 15,076,099 12,811,009 (23,750,941) 4,136,167
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31 December 2015
Opening Closing
In Taka balance Addition Transfer Balance
Plant and machinery 56,203,366 14,510,349 (66,507,448) 4,206,267

Furniture for different stores 3,164,515 25,459,457 (17,754,140) 10,869,832
Total 59,367,881 39,969,806 (84,261,588) 15,076,099

6.3 Disposal of property, plant and equipment
31 December 2016
In Taka
Machinery
Motor car
Computer
Furniture and
d Original
cost
2,671,609
-
4,980,028
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Accumulated
depreciation
1,092,163
-
4,874,507
Book
value
1,579,446
-
105,521
Sales value
205,193
-
289,100
Mode of
disposal
Auction
N/A
Insurance claim
Purchaser
Various parties
N/A
N/A

equipment in shops 23,164,527 17,309,280 5,855,247 4,490,700 Auction Various parties
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30,816,164 23,275,950 7,540,214 4,984,993
31 December 2015
Original Accumulated Book Mode of
In Taka cost depreciation value Sales value disposal Purchaser
Machinery 8,167,993 7,311,756 856,238 79,908 Auction Various parties

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Motor car 6,300,187 5,344,187 956,000 1,343,119 Auction Various parties

Computer 110,260 55,130 55,130 68,097 Insurance claim N/A
Furniture and

equipment in shops 25,128,175 20,092,412 5,035,762 842,145 Auction Various parties
39,706,615 32,803,485 6,903,130 2,333,269
6.4 C&F value of imported capital assets

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The import of capital assets by the company at C&F value was as follows:
Foreign currency Local currency
Capital assets 2016 2015 2016 2015
Plant and machinery and USD 101,486 126,443 7,992,087 9,871,446

furniture and fixtures in shops
101,486 126,443 7,992,087 9,871,446
51
7. Deferred tax assets (liabilities)
See accounting policies in note 46(l)
2016 Recognised Balance as at 31 December

Net balance in profit Deferred tax Deferred tax
In Taka at 1 January or loss Net assets liabilities
Property, plant and equipment (55,949,840) (9,328,926) (46,620,914) - (46,620,914)
Deferred rent - (10,170,022) 10,170,022 10,170,022 -
Deferred liability 44,397,250 (25,748,408) 70,145,658 70,145,658 -
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Bad & doubtful debt provision 6,718,458 119,343 6,599,115 6,599,115 -
Personal account provision 6,372,543 (260,672) 6,633,215 6,633,215 -
Rounded off 61,589 (11,315) 72,904 72,904 -
Deferred tax assets (liabilities) 1,600,000 (45,400,000) 47,000,000 93,620,914 (46,620,914)
Net deferred tax assets 47,000,000
2015 Recognised Balance as at 31 December

Net balance in profit Deferred tax Deferred tax
In Taka at 1 January or loss Net assets liabilities
.c
Property, plant and equipment (52,887,412) 3,062,428 (55,949,840) - (55,949,840)
Deferred liability 40,179,893 (4,217,357) 44,397,250 44,397,250 -
Bad & doubtful debt provision 5,190,989 (1,527,469) 6,718,458 6,718,458 -
Personal account provision 6,798,155 425,612 6,372,543 6,372,543 -
Rounded off (31,625) (93,214) 61,589 61,589 -
d
Deferred tax assets (liabilities) (750,000) (2,350,000) 1,600,000 57,549,840 (55,949,840)
Net deferred tax assets 1,600,000
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8. Inventories
See accounting policies in note 46(d)
In Taka 2016 2015

Raw materials 383,180,358 350,759,390
Work in process 61,818,628 56,396,852
Finished goods 2,333,669,427 1,859,195,767
2,778,668,413 2,266,352,009
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9. Accounts receivable
See accounting policies in note 46(b)

Trade receivables
- Export customers - Non BSO companies 1,308,525 3,944,665
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- Export customers - BSO companies 1,647,808 3,107,616

- Receivables from dealers 972,894,747 908,263,058
- Receivables from Footin Customers 14,979 -
- Receivables from institutional sale 42,709,789 10,949,701
1,018,575,848 926,265,040
Other receivables
ANNUAL REPORT 2016
- Interest receivable 5,329,488 5,495,784

- VAT claims 1,055,260 580,795
- Insurance claim 19,248,837 56,481
25,633,585 6,133,060
1,044,209,433 932,398,100
Provision for doubtful debts 9.1 (26,396,461) (25,490,172)
1,017,812,972 906,907,928
52
Form of Proxy
9.1 Provision for doubtful debts

Balance as at 1 January 25,490,172 20,973,694
Provision made during the year 23.1 906,289 4,516,478
Balance as at 31 December 26,396,461 25,490,172
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Accounts receivable are aged as below:
2016 2015
Below Over Below Over
In Taka six months six months six months six months
Export customers - non BSO companies 1,308,525 - 3,944,665 -

Export customers - BSO companies 1,647,808 - 3,107,616 -
.c
Receivables from dealers 946,498,286 26,396,461 882,772,886 25,490,172
Receivables from institutional sale 42,724,768 - 10,949,701 -
Interest receivable 5,329,488 - 5,495,784 -
VAT claims 1,055,260 - 580,795 -
Insurance claim
d 19,248,837 - 56,481 -
1,017,812,972 26,396,461 906,907,928 25,490,172

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9.2 Debts due by directors, officers and other related parties
As at 31 December 2016, accounts receivables does not include any amount due by:
(a) Directors and other officers of the company;
(b) Firms or private limited companies respectively in which any director of the company is a partner, director or member, other
than those disclosed in note 36.1; and
(c) Companies under the same management.
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10. Advances, deposits and prepayments

Advances (considered good) to:
Agents and employees 25,900,208 20,778,585
Suppliers against materials and services 3,668,018 2,205,814
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29,568,226 22,984,399
Security and other deposits 536,263,276 426,662,685
Prepayments to landlords-current portion 10.1 105,814,788 104,960,825
671,646,290 554,607,909
10.1 Prepayments of rent
Prepayments to landlords 247,413,274 211,328,872

Less: Current portion 10 105,814,788 104,960,825
Non-current portion 141,598,486 106,368,047
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10.2 Loans and advances to directors, officers and other related parties
Other than those mentioned in the note above, there were no loans or advances to:
(a) Directors of the company;
(b) Firms or private limited companies respectively in which any director of the company is a partner, director or member; and
(c) Companies under the same management.
11. Cash and cash equivalents
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In Taka 2016 2015
Cash in hand 2,089 7,205
Cash at Bank 684,254,022 24,370,926
Fixed deposits 228,000,000 327,000,000
912,256,111 351,378,131
11.1 Credit facilities available as at 31 December

The company enjoys both funded and non funded short term working capital facilities with two banks. The non funded facilities
.c
include Letters of Credit (LC), Letters of Guarantee, Packing Credit, LDBP, FDBP and foreign exchange forward contracts (FX
Forward). The funded facilities include overdraft facility, short term loan and import loan. The aggregate amount of available short
term working capital facilities is Tk. 900 million (2015: Tk. 1,000 million) of which non funded limit is Tk. 600 million (2015: Tk. 700
million) and funded limit is Tk. 300 million (2015: Tk. 300 million).
Details of the total facilities are stated below:

d
(a) HSBC Bank
i) L/C facility - Tk. 200 million (2015: Tk. 300 million).
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ii) Overdraft / short term loan facility - Tk. 100 million (2015: Tk. 100 million).
(b) Eastern Bank Limited

i) L/C facility - Tk. 393 million (2015: Tk. 393 million).
ii) Overdraft facility / short term loan facility - Tk. 200 million (2015: Tk. 200 million).
iii) Letters of Guarantee - Tk. 7 million (2015: Tk. 7 million)
In millions of Taka 2016 2015

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Total credit facilities available 900 1,000

Credit facilities availed 211 101
12. Share capital

See accounting policies in note 46(f)
In Taka 2016 2015
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Authorised:
20,000,000 ordinary shares of Tk. 10 each 200,000,000 200,000,000
200,000,000 200,000,000
Issued, subscribed and paid up:
ANNUAL REPORT 2016
2,850,723 ordinary shares of Tk. 10 each issued for cash 28,507,230 28,507,230
10,829,277 ordinary shares (including 7,202,400 bonus shares)

of Tk. 10 each issued for consideration other than cash 108,292,770 108,292,770
136,800,000 136,800,000
The shares are listed both in the Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited and quoted at Tk.
1,142.00 (2015: Tk. 1,317.70) and Tk. 1,162.90 (2015: Tk. 1,348.00) per share at 31 December 2016 and 2015 respectively.
54
Form of Proxy
2016 2015
Percentage of shareholdings % Taka % Taka
Bafin (Nederland) B.V 70.00 95,760,000 70.00 95,760,000
Non-resident shareholders 5.30 7,249,730 9.84 13,466,410
Local shareholders 24.70 33,790,270 20.16 27,573,590

100.00 136,800,000 100.00 136,800,000
Classification of shareholders by range:

Number of shareholders Number of shares
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Shareholder's range 2016 2015 2016 2015
Less than 501 shares 5,737 5,048 598,653 576,681
501 to 5,000 shares 361 329 534,144 503,464
5,001 to 10,000 shares 34 31 255,309 232,336
10,001 to 20,000 shares 26 23 373,529 329,086
20,001 to 30,000 shares 8 9 196,835 226,008
30,001 to 40,000 shares 3 5 104,989 170,872
40,001 to 50,000 shares 4 2 175,459 87,514

50,001 to 100,000 shares 8 5 495,687 335,929
.c
100,001 to 1,000,000 shares 8 9 1,369,395 1,642,110
Over 1,000,000 shares 1 1 9,576,000 9,576,000
6,190 5,462 13,680,000 13,680,000
13. Reserves and surplus
In Taka
d Note 2016 2015
Reserve on revaluation of land 60,631,183 60,631,183
Non-distributable special reserve 13.1 998,620 998,620

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General reserve 48,863,000 48,863,000
Retained earnings 13.2 3,309,293,627 2,717,715,621
3,419,786,430 2,828,208,424
13.1 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 applicable only
to the profit on sale of immovable assets such as land, buildings etc.
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13.2 Retained earnings

In Taka 2016 2015
Balance as at 1 January 2,717,715,621 2,323,731,090
Profit for the year 1,043,018,006 831,744,531
Interim dividend (307,800,000) (294,120,000)
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Final dividend (143,640,000) (143,640,000)
3,309,293,627 2,717,715,621
14. Deferred liability

See accounting policies in note 46(g)
In Taka 2016 2015

Balance as at 1 January 177,589,000 162,343,000
Provision made / (reversed) during the year 124,680,847 45,637,821
302,269,847 207,980,821
Paid during the year (21,687,217) (30,391,821)
Balance as at 31 December 280,582,630 177,589,000
Deferred liability represents provision for staff gratuity up to 31 December 2016.
55
15. Creditors for goods
In Taka 2016 2015

Payable to local suppliers 846,641,650 413,646,967
Payable to Foreign suppliers 11,300,354 657,937
Payable to BSO companies 34,873,688 16,446,721
892,815,692 430,751,625
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16. Creditors for expenses
In Taka 2016 2015

Payable to local suppliers 110,984,388 32,921,755
Payable to Foreign suppliers 3,081,478 3,743,850
Payable to BSO companies 430,139,220 430,473,561
544,205,086 467,139,166
17. Creditors for other finance
In Taka
d
Workers' profit participation fund
Personal accounts of employees and agents
Security and other deposits
.c Note
26
2016
74,873,263
81,078,270
63,783,553
2015
63,529,923
74,800,938
25,524,500
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Provident fund 10,575,999 9,041,955
Tax deducted at source 79,427,228 67,293,907
Pension fund 724,726 687,230
VAT deducted at source 5,142,835 11,959,840
Salary and wages payable 27,172,357 37,497,438
Others 30,674,710 21,899,672
373,452,941 312,235,403
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18. Accrued expenses
In Taka 2016 2015

Bonus 88,687,542 83,000,000
Utility 9,163,860 9,780,000
la
Legal & audit fee 2,651,300 3,200,800

Royalty 40,839,642 39,994,253
Joint venture commission 7,689,160 7,832,713
Other accrued liabilities 202,179,448 267,067,175
351,210,952 410,874,941
ANNUAL REPORT 2016
19. Current tax liabilities
See accounting policies in note 46(l)

Income tax paid 19.1 (235,936,089) (226,617,063)
Provision for income tax 19.2 710,467,179 623,732,902
474,531,090 397,115,839
56
Form of Proxy
19.1 Income tax paid

In Taka 2016 2015
Balance at 1 January 226,617,063 233,473,827
Paid during the year for the
Income year ended 31 December 2016 176,638,694 -
Income year ended 31 December 2015 170,920,055 167,319,668
Income year ended 31 December 2014 - 147,846,750

Income year ended 31 December 2008 - 400,441
574,175,812 560,117,291
om
Adjustment of advance tax on completion of assessment (338,239,723) (333,500,228)
Balance at 31 December 235,936,089 226,617,063
19.2 Provision for income tax

In Taka 2016 2015
Balance at 1 January 623,732,902 579,559,130
Provision for the year 424,974,000 370,000,000
Prior year adjustment - 7,674,000
1,048,706,902 957,233,130

Adjustment of tax provision on completion of assessment (338,239,723) (333,500,228)
Balance at 31 December 710,467,179 623,732,902
.c
20. Revenue
See accounting policies in note 46(i)
In thousands 2016 2016 2015 2015
Pair Amount Pair Amount
Local
Shoes 29,637 8,399,620 29,043 8,146,099
Export
d
Hosiery & accessories -
-
350,081
34,852
-
-
330,307
46,396
8,784,553 8,522,802

21. Cost of sales
ab
Stock of finished goods as at 1 January 1,859,195,767 1,746,450,314
Cost of goods manufactured 21.1 3,942,385,579 3,685,473,569
Finished goods purchased 1,499,326,094 1,521,676,785
Cost of finished goods available for sale 7,300,907,440 6,953,600,668
Stock of finished goods as at 31 December (2,333,669,427) (1,859,195,767)
4,967,238,013 5,094,404,901
The opening and closing stocks of goods produced are shown below:
Figures in '000 pairs
nk
Closing stock Opening stock

Shoes 6,301 4,683

21.1 Cost of goods manufactured
Cost of materials consumed 21.1.1 3,039,124,753 2,821,717,142
Direct wages 526,576,796 474,224,466
Prime cost 3,565,701,549 3,295,941,608
la
Manufacturing overhead:
- Remuneration to employees 198,408,202 185,801,298
- Gas, water and electricity 46,057,941 39,629,243
- Repairs and maintenance 21.1.2 59,721,379 75,848,401
- Insurance 8,885,574 8,378,233
- Uniform for workers 1,536,735 1,259,272
- Health and other welfare expenses 16,876,420 22,679,966
- Travelling 7,296,737 6,116,053
- Postage 1,353,298 1,590,940
- Stationery 1,716,348 1,429,013
- Entertainment 3,433,200 2,943,814
- Depreciation 6.1 36,819,972 36,761,179
382,105,806 382,437,412
Cost of production 3,947,807,355 3,678,379,020
Difference in work in process:
- Work in process as at 1 January 56,396,852 63,491,401
- Work in process as at 31 December (61,818,628) (56,396,852)
(5,421,776) 7,094,549
3,942,385,579 3,685,473,569
57
ANNUAL REPORT 2016
58
21.1.1 Cost of materials consumed
In Taka Opening stock Purchase Closing stock Consumption

la
Imported 112,003,879 791,772,569 121,985,261 781,791,187
Local purchase 230,209,369 2,238,610,648 211,486,451 2,257,333,566
- - -
2016 342,213,248 3,030,383,217 333,471,712 3,039,124,753

nk
2015 331,180,888 2,832,749,502 342,213,248 2,821,717,142
Duty drawback of Tk. 660,265 claimed on export sales have been adjusted against cost of raw materials.
Cost of materials consumed is 26% imported and 74% locally purchased (2015: 27% imported and 73% locally purchased).
21.1.2 Repairs and maintenance

ab
Repairs and maintenance amounting to Tk. 59,721,379 includes Tk. 34,023,944 (including C&F value of US$ 411,099, EURO 5,837 and GBP 9,767 of imported items)
representing cost of spare parts, moulds and accessories consumed.
21.2 Statement of production capacity and actual production

d
Production capacity in pairs Actual production in pairs
Capacity in thousands 2016 2015 2016 2015
.c
Tongi 34,333 26,487 20,897 19,601
Dhamrai 11,130 9,954 8,261 7,074
45,463 36,441 29,158 26,675
om
Form of Proxy
22. Other income

In Taka 2016 2015
Gain/(loss) on disposal of property, plant and equipment (2,555,221) (4,569,861)
Discount for early payment 4,345,047 12,829,603

1,789,826 8,259,742
om
23. Administration, selling and distribution expenses
Remuneration to employees 663,734,344 612,949,597
Health and other welfare expenses 12,920,866 13,041,348
Travelling expenses 64,323,074 60,077,664
Bank charges 2,031,348 1,824,263

Repairs and maintenance 89,326,052 63,785,013
Stationery 13,319,229 15,836,573
Postage, telegram and telephone
Entertainment expenses
Subscription and donation
Advertisement
Selling Expenses
General charges
d
Rent, rates and taxes
.c 23.1
7,367,037
17,643,726
1,595,934
28,792,278
20,965,864
475,087,857
40,432,928
9,617,540
16,196,328
1,663,334
21,682,735
15,355,267
441,590,607
20,600,896

Directors' fees 138,000 90,000
ab
Auditors' fees 632,500 575,000
Legal and other professional fees 23.2 5,724,205 4,742,720
Insurance 5,287,537 4,997,478
Land revenue 1,470,275 497,125
Freight and transport 68,120,724 67,207,397
Packing expenses 81,187,888 72,203,143
nk
Commission 23.3 225,640,672 263,181,868

Royalty on Hush Puppies brand 23.4 14,907,321 13,282,338

Royalty on Dr. Scholl brand 23.4 6,154,858 5,124,427
Royalty on Naturalizer Brand 23.4 485,603 450,129
Royalty on Ben10 & Powerpuff Girls 23.4 1,574,536 2,723,902
Global Footwear Services fees 23.4 121,731,593 121,780,627
la
Trade mark license fees 23.4 183,799,832 179,821,929

IT fees 8,021,735 8,251,867
Electricity 72,932,421 69,214,635
Depreciation 6.1 112,166,477 87,465,192
2,347,516,714 2,195,830,942
23.1 General charges

General charges comprises of provision for bad debt TK. 906,289 (Note: 9.1).
23.2 Legal and other professional fees

Legal and other professional fees include fees of Tk. 1,682,793 (2015: Tk. 1,488,500) to the audit firms in connection
with global reporting, tax certification and services regarding assessments/appeals and advisory.
59
23.3 Commission
In Taka 2016 2015
Retail 137,078,537 136,721,302
Wholesale 88,467,129 125,980,450
Export 95,006 480,116
225,640,672 263,181,868
23.4 Royalty on Hush Puppies, Dr. Scholl and Naturalizer brands, Ben10 & Powerpuff girls, Global Footwear Services
om
fees and Trade Mark License fees of Tk. 14,907,321 Tk. 6,154,858 Tk. 485,603 Tk. 1,574,536 Tk. 121,731,593 and
Tk. 183,799,832 respectively represent equivalent foreign currency of USD 188,915, USD 77,998, USD 6,154, SGD
2,100,000 and USD 2,329,234 provided during the year.
24. Finance income

See accounting policies in note 46(k)
In Taka 2016 2015
.c
Interest on:
- Fixed deposit 18,276,416 18,395,246
- Short term deposit 9,586,728 5,558,453
- Personal account - 4,889,257
27,863,144 28,842,956
d
25. Finance expense
See accounting policies in note 46(k)
ab
In Taka 2016 2015
Interest on:
- Overdraft 559,732 320,572
- Personal account 2,926,740 3,989,038
3,486,472 4,309,610
nk
26. Contribution to workers' profit participation fund

See accounting policies in note 46(q)
In Taka 2016 2015
Profit from operating activities 1,473,088,597 1,246,065,108
Net finance income/(expense) 24,376,672 24,533,346
la
Profit before contribution to workers' profit participation fund 1,497,465,269 1,270,598,454
Workers' profit participation fund @ 5% 74,873,263 63,529,923
27. Emoluments to directors

ANNUAL REPORT 2016
In Taka 2016 2015

Remuneration 16,147,966 16,147,966
Bonus 4,970,728 1,962,534
Retirement benefit schemes 1,036,000 1,036,000
Housing 3,820,973 4,455,000
25,975,667 23,601,500
60
Form of Proxy
28. Emoluments to managers

In Taka 2016 2015
Remuneration 112,336,737 93,593,782
Retirement benefit schemes 15,323,790 16,104,752
Housing 18,334,459 18,948,963

145,994,986 128,647,497
29. Contribution to employees' provident fund and pension fund
om
See accounting policies in note 46(q)
In Taka 2016 2015
Provident fund:
- Managers 7,553,550 7,404,590
- Officers & supervisors 12,550,592 12,396,947
- Workers 11,217,434 10,134,091
31,321,576 29,935,628

Pension fund 8,806,240 8,700,162
40,127,816 38,635,790
30.
31.
Profit before tax
See accounting policy in note 46(l)
.c
Profit before tax Tk.1,422,592,006 (2015: Tk. 1,207,068,531) includes profit amounting to Tk. 883,582,333 (2015: Tk.
201,163,945) of leather shoe factory at Dhamrai and Tk. 539,009,673 (2015: Tk. 1,005,904,586) at Tongi.
Income tax expense

d
See accounting policy in note 46(l)

ab
A. Amounts recognised in profit or loss
In Taka 2016 2015
Current tax expense
Current year 424,974,000 370,000,000

Prior year adjustment - 7,674,000
424,974,000 377,674,000
nk
B. Deferred tax (income)/expense

Change in recognised deductible temporary and other differences (45,400,000) (2,350,000)
(45,400,000) (2,350,000)
Tax expense on continuing operations 379,574,000 375,324,000
la
C. Reconciliation of effective tax

In Taka 2016 2015
Profit before tax 1,422,592,006 1,207,068,531
Factors affecting the tax charge for current period:
Income tax using the Companys domestic tax rate 25.0% 355,648,002 25.0% 301,767,133
Non-deductible expenses 4.8% 67,800,364 5.4% 65,138,189
Tax exempt income -0.1% (826,243) -0.1% (970,322)
Round off adjustment 0.2% 2,351,877 0.3% 3,979,043
Under/(over) provided in prior year -3.2% (45,400,000) -0.2% (2,264,042)
Change in estimate related to prior year 0.0% - 0.6% 7,674,000
26.7% 379,574,000 31.1% 375,324,000
61
32. Remittance of foreign currency
See accounting policies in note 46(a)
2016 2015
Name of the parties Nature of transaction Currency FC Taka FC Taka
Bafin (Nederland) B.V. Dividend USD 3,596,714 284,407,200 3,507,913 275,788,800
SSL International PLC Royalty on Dr. Scholl Brand GBP 24,508 2,854,426 - -
om
Global Footwear Services Management services fees SGD 1,680,000 94,620,225 1,417,500 83,892,375
Pte. Ltd., Singapore
Wolverine World Royalty on Hush Puppies Brand USD 154,856 12,233,622 - -

Wide Inc., USA Consultancy Fees USD - - 4,684 369,807
Euro Footwear Holdings IT Fees EUR 78,000 6,954,870 78,000 6,716,705

S.a.r.l USD 2,685 211,175 2,238 174,570
Bata Brands S.a.r.l - Trade Mark License Fees USD 1,950,006 154,050,437 - -
Swiss Branch
OctaShop eRetail Servises

Private Ltd.
Bata Brands SA
d
Aurelius Alpha International
Consultancy Fees
Royalty
Sub License Fees

.c USD
EUR
USD
5,400
11,979
25,000
420,660
1,092,594
1,950,000
5,400
-
441,840
-
ab
Turner Broadcasting Royalty USD 50,000 3,930,000 - -
Capillary Technologies Management services fees USD 57,600 2,996,584 - -

India Private Ltd.
The figures represent net of tax.
33. Earnings in foreign currency

nk
See accounting policies in note 46(a)
In taka 2016 2015
Export of shoes and other footwear goods 34,852,174 46,396,428

34,852,174 46,396,428
34. Earnings per share

See accounting policies in note 46(m)
la
34.1 Basic earnings per share (EPS)

In taka 2016 2015
Earnings attributable to the ordinary shareholders (net profit after tax) 1,043,018,006 831,744,531
Weighted average number of ordinary shares outstanding during the year 13,680,000 13,680,000
ANNUAL REPORT 2016
Basic earnings per share (EPS) 76.24 60.80
34.2 Diluted earnings per share

No diluted earnings per share is required to be calculated for the year as there was no potentially dilutive ordinary shares during the year.
So, both basic and diluted earning per share are same.
35. Number of employees

The number of employees for the whole year or part thereof who received a total remuneration of Tk 36,000 and above was 1,671 (2015: 1,723).
62
Form of Proxy
36. Financial risk management

The management has overall responsibility for the establishment and oversight of the Company's risk management framework.
The Company's risk management policies are established to identify and analyse the risks faced by the company to set appropriate
risk limits and controls, and to monitor risks and adherence to limits. Risk management policies, procedures and systems are
reviewed regularly to reflect changes in market conditions and the company's activities.This note presents information about the
company's exposure to each of the following risks, the Company's objectives, policies and processes for measuring and managing
risk, and the Company's management of capital. The company has exposure to the following risks from its use of financial

instruments;
Credit risk
Liquidity risk
om
Market risk
36.1 Credit risk

Credit risk is the risk of a financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the company's receivables from dealers, institutional and export customers etc.
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.

In monitoring credit risk, debtors are Grouped according to their risk profile, i.e. their legal status, financial condition, ageing profile
etc. Accounts receivable are mainly related to sale of shoes, hosiery, accessories and finished leather etc.
a) Exposure to credit risk

d .c
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial
position.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
reporting date was:

ab
Trade receivables 9
Export customers - Non BSO companies 1,308,525 3,944,665

Export customers - BSO companies 1,647,808 3,107,616
Receivables from dealers 972,894,747 908,263,058
Receivables from Footin Customers 14,979 -
nk
Receivables from institutional sale 42,709,789 10,949,701
1,018,575,848 926,265,040

Other receivable 9 25,633,585 6,133,060
Security and other deposits 10 536,263,276 426,662,685
la
2,492,728,820 1,710,438,916
The maximum exposure to credit risk for accounts receivable as at 31 December by geographic regions was:
In Taka 2016 2015
Domestic 1,015,619,515 919,212,758

Asia 1,035,466 5,545,942
Australia 1,308,525 1,226,882
South America 612,342 279,457
1,018,575,848 926,265,040
63
b) Ageing of receivables
Export customers - Non BSO companies 9

- Invoiced 0-30 days 1,308,525 1,226,882
- Invoiced 31-60 days - 2,717,783
om
1,308,525 3,944,665
Export customers - BSO companies 9

- Invoiced 0-30 days 612,342 279,457
- Invoiced 31-60 days - -
- Invoiced 61-90 days 479,719 2,828,159
- Invoiced 91-180 days 555,747 -
1,647,808 3,107,616
Receivables from domestics

- Invoiced 0-30 days
d
- Invoiced over 365 days
.c 9
306,682,266
295,451,901
200,108,182
198,027,784
15,349,382
347,987,525
241,339,161
234,489,890
74,207,781
21,188,401
ab
1,015,619,515 919,212,758
c) Impairment losses
Impairment losses on the above receivables were recognised as per the Company policy. Quantitative disclosure for such
impairment losses are as below:
nk
Receivables from dealers

- Accounts receivable 9 972,894,747 908,263,058
- Provision for doubtful debts 9.1 (26,396,461) (25,490,172)
la
946,498,286 882,772,886
Receivables from institutional sale

- Accounts receivable 9 42,709,789 10,949,700
- Provision for doubtful debts 9.1 - -
ANNUAL REPORT 2016
42,709,789 10,949,700
Receivables from Footin Customers

- Accounts receivable 9 14,979 -
- Provision for doubtful debts 9.1 - -
14,979 -
64
36.2 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.
The following are the contractual maturities of financial liabilities:

la
As at 31 December 2016 Contractual cash flows
Note Carrying amount Maturity period Nominal Within 6 months Within
In taka Interest rate or less 6-12 months
Creditors for goods 15

- Payable to local suppliers 846,641,650 June 2017 N/A 846,641,650 -
- Payable to foreign suppliers 11,300,354 June 2017 N/A 11,300,354 -
- Payable to BSO companies 34,873,688 June 2017 N/A 34,873,688 -
nk
892,815,692 892,815,692
Creditors for expenses 16
- Payable to foreign suppliers 3,081,478 June 2017 N/A 3,081,478 -
- Payable to BSO companies 430,139,220 December 2017 N/A 430,139,220 -
544,205,086 544,205,086 -
Creditors for other finance 17
ab
- Personal accounts of employees and agents 81,078,270 June 2017 6.5% 1,572,085 79,506,185
- Workers' profit participation fund 74,873,263 June 2017 N/A 74,873,263 -
- Security and other deposits 63,783,553 June 2017 N/A 63,783,553 -
- Provident fund 10,575,999 June 2017 N/A 10,575,999 -
- Tax deducted at source
- Pension fund
d 79,427,228
724,726
June
June
2017
2017
N/A
N/A
79,427,228
724,726
-
-
- VAT deducted at source 5,142,835 June 2017 N/A 5,142,835 -
- Salary and wages payable 27,172,357 June 2017 N/A 27,172,357 -
- Others 30,674,710 June 2017 N/A 30,674,710 -
373,452,941 293,946,756 79,506,185

.c
Accrued liabilities 18
- Bonus 88,687,542 June 2017 N/A 88,687,542 -
- Utility 9,163,860 June 2017 N/A 9,163,860 -
- Legal & audit fee 2,651,300 June 2017 N/A 2,651,300 -
- Royalty 40,839,642 June 2017 N/A 40,839,642 -
- Joint venture commission 7,689,160 June 2017 N/A 7,689,160 -
- Other accrued liabilities 202,179,448 December 2017 N/A 92,456,833 109,722,615
om
351,210,952 241,488,337 109,722,615
Unclaimed dividend 80,837,261 December 2017 N/A 48,502,000 32,335,261
Exposure to liquidity risk in respect of the Company's financial statements at 31 December 2016 does not vary significantly from above.
65
Statement of profit or loss and State of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Form of Proxy
ANNUAL REPORT 2016
66
As at 31 December 2015 Contractual cash flows

Note Carrying amount Maturity period Nominal Within 6 months Within
In taka Interest rate or less 6-12 months
Creditors for goods 15
la
- Payable to foreign suppliers 657,937 June 2016 N/A 657,937 -
- Payable to BSO companies 16,446,721 June 2016 N/A 16,446,721 -
430,751,625 430,751,625 -
Creditors for expenses 16
- Payable to local suppliers 32,921,755 June 2016 N/A - -

- Payable to foreign suppliers 3,743,850 June 2016 N/A - -
nk
- Payable to BSO companies 430,473,561 December 2016 N/A - -
467,139,166 - -
Creditors for other finance 17

- Personal accounts of employees and agents 74,800,938 June 2016 6.5% 1,115,184 73,685,754
- Workers' profit participation fund 63,529,923 June 2016 N/A 63,529,923 -
- Security and other deposits 25,524,500 June 2016 N/A 25,524,500 -
- Provident fund 9,041,955 June 2016 N/A 9,041,955 -
ab
- Tax deducted at source 67,293,907 June 2016 N/A 67,293,907 -
- Pension fund 687,230 June 2016 N/A 687,230 -
- VAT deducted at source 11,959,840 June 2016 N/A 11,959,840 -
- Salary and wages payable 37,497,438 June 2016 N/A 37,497,438 -
- Others
d 21,899,672
312,235,403
June 2016 N/A 21,899,672
238,549,649
-
73,685,754
Accrued liabilities 18
- Bonus 83,000,000 June 2016 N/A 83,000,000 -

- Utility 9,780,000 June 2016 N/A 9,780,000 -
.c
- Legal & audit fee 3,200,800 June 2016 N/A 3,200,800 -
- Royalty 39,994,253 June 2016 N/A 16,180,642 23,813,611
- Joint venture commission 7,832,713 June 2016 N/A 7,832,713 -
- Other accrued liabilities 267,067,175 December 2016 N/A 120,523,820 146,543,355
410,874,941 240,517,975 170,356,966
Unclaimed dividend 75,879,187 December 2016 N/A 45,528,000 30,351,187

om
Exposure to liquidity risk in respect of the Company's financial statements at 31 December 2015 does not vary significantly from above.
Form of Proxy
36.3 Market risk

Market risk is the risk that any change in market conditions, such as foreign exchange rates, interest rates and commodity prices that will affect
the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.
a) Currency risk/foreign exchange risk
The Company is exposed to currency risk on sales and purchases with foreign customers and suppliers including Bata Group (globally) and
on royalty payment. Majority of the Company's foreign currency transactions are denominated in USD. The Company maintains USD bank

account where all receipts are deposited and all corresponding payments are made.
i) Exposure to currency risk
The Company's exposure to foreign currency risk was as follows based on notional amounts:
om
31 December 2016 31 December 2015
USD SGD EUR USD SGD EUR
Foreign currency denominated assets
Accounts receivable 37,465 - - 55,287 - -

Cash at bank
Eastern Bank Limited 188,477 - - 88,994 - -

HSBC 23,344 - - 32,030 - -
.c
249,286 - - 176,311 - -
Foreign currency denominated liabilities
Trade and other payables for expenses (5,198,760) (1,680,000) (8,676) (4,277,853) (1,890,000) (86,667)
Total
d (5,198,760) (1,680,000) (8,676) (4,277,853) (1,890,000) (86,667)
Net exposure (4,949,474) (1,680,000) (8,676) (4,101,542) (1,890,000) (86,667)

ab
Payable to other entities represents payable for Global footwear service fees, IT fees etc.
Exposure to currency risk as at 31 December 2016 in respect of the separate financial statements does not vary from above. The Company
has a foreign exchange gain amounting to Tk. 1,500,181 during the year ended 31 December 2016.
The following significant exchange rates are applied during the year:
Average rate Year end spot rate

2016 2015 2016 2015
nk
Exchange rate at Taka Taka Taka
US Dollar 78.51 77.69 78.91 78.40

Singapore Dollar (SGD) 56.87 48.29 54.52 46.02
EURO (EUR) 86.72 84.99 83.01 84.94
ii) Foreign exchange rate sensitivity analysis for foreign currency expenditures
la
A strengthening (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 exchange rate
variances that the Company considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in
particular interest rates, remain constant. The analysis is performed on the same basis for 2016, albeit that the reasonably possible foreign
exchange rate variances were different, as indicated below:
Profit or loss Equity
In Taka Strengthening Weakening Strengthening Weakening
At 31 December 2016
USD (1 percent movement) 3,905,630 (3,905,630) 3,905,630 (3,905,630)
SGD (1 percent movement) 1,394,563 (1,394,563) 1,394,563 (1,394,563)
EUR (1 percent movement) 4,730 (4,730) 4,730 (4,730)
At 31 December 2015
USD (2 percent movement) 6,431,218 (6,431,218) 6,431,218 (6,431,218)
SGD (2 percent movement) 1,739,536 (1,739,536) 1,739,536 (1,739,536)
EUR (2 percent movement) 147,231 (147,231) 147,231 (147,231)
67
iii) Foreign exchange gain
In Taka 2016 2015
Foreign exchange gain 1,500,181 5,239,590
b) Interest rate risk
om
The interest bearing financial instrument for the Company is the short term deposit (STD) account maintained by the company with
its commercial banks. These are highly liquid and very short term deposits with nominal interest rate. Interest rate fluctuation for such
investment have little impact on financial statements. Therefore, interest rate risk for the Company is insignificant.
c) Commodity risk
Commodity risk refers to the uncertainties of future market values and of the size of the future income, caused by the fluctuation in
the prices of commodities. As the Company purchases MS wire, blended power, calcium carbide and other raw materials, it is
exposed to risks arising from the purchase of these materials for use in production. Commodity price risk is managed by supply
contracts with suppliers.
d) Accounting classification and fair values
In Taka
Loans and receivables

Trade receivable, net
d .c
Fair value of financial assets and liabilities together with carrying amount shown in the statement of financial position are as
follows:
Carrying amount
2016
Fair value
1,018,575,848 1,018,575,848
Carrying amount
2015
Fair value
926,265,040 926,265,040
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Other receivables 25,633,585 25,633,585 6,133,060 6,133,060
Cash and cash equivalents 912,256,111 912,256,111 351,378,131 351,378,131
Available for sale financial assets

Security deposits 536,263,276 536,263,276 426,662,685 426,662,685
Financial liabilities carried at amortised costs

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Creditors for goods 892,815,692 892,815,692 430,751,625 430,751,625

Creditors for expenses 544,205,086 544,205,086 467,139,166 467,139,166
Creditors for other finance 373,452,941 373,452,941 312,235,403 312,235,403
Accrued expenses 351,210,952 351,210,952 410,874,941 410,874,941
37. Related party disclosures

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37.1 Parent and ultimate controlling party

Bafin (Nederland) B.V has 70% shareholding of the Company which is fully owned by Compass Limited. As a result, the ultimate
controlling party of the Company is Compass Limited.
37.2 Transaction with key management personnel

ANNUAL REPORT 2016
Transaction for the year

In thousands of Taka 2016 2015
Directors 25,976 23,602

Top Managers 84,582 128,647
110,558 152,249
68
Form of Proxy
37.3 Other related party transactions

During the year ended 31 December 2016, Company entered into a number of transactions with related parties / associated enterprises in
the normal course of business. Relationship with related parties / associated enterprises, nature of these transactions and amount thereof
have been set out below in accordance with the provisions of BAS 24: Related Party Disclosures.
Transaction values for the year Balance outstanding

Nature of Nature of ended 31 December as at 31 December
In thousands of Taka relationship transactions 2016 2015 2016 2015
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Holding company Dividend payment (316,008) (306,432) - -
Associated companies Purchase of goods (203,549) (279,660) (34,874) (16,934)

Service received (903) (3,208) (720) (3,168)
Sales of goods 8,785 10,120 1,469 3,108
Service provided - 122 - -
Trade mark license fees (183,800) (178,226) (367,309) (350,989)
IT fees (7,884) (8,079) (7,872) (7,518)

38. Operating leases payments disclosure
.c
See accounting policies in note 43(j)
Non-cancellable operating lease rentals are payable as follows:
In thousands of Taka 2016 2015
Less than one year 577,045 561,482

d
Between one and five years 4,572,701 3,667,533
More than five years 1,408,941 1,076,700
6,558,687 5,305,715

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39. Financial commitment
There were no financial commitments as at 31 December 2016 (2015: Nil)
40. Contingent liabilities
There are contingent liabilities on account of unresolved disputed corporate tax assessments and VAT claims by the authority
aggregating to Tk. 440,330,000 (2015: Tk. 475,502,000). Considering the merits of the cases, it has not been deemed necessary to
make provisions for all such disputed claims.
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There is also contingent liability in respect of outstanding letters of credit of Tk. 203.7 million (2015: Tk. 76.8 million) and letter of
guarantee of Tk. 6.7 million (2015: Tk. 6 million).

41. Going concern
The Company has adequate resources to continue in operation for foreseeable future and hence, the financial statements have been
prepared on going concern basis. As per management assessment there are no material uncertainties related to events or conditions
which may cast significant doubt upon the Company's ability to continue as a going concern.
Details of the Company's accounting policies including changes during the year are included in note 46.
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42. Comparatives
Comparative information have been disclosed in respect of 2016 for all numerical information in the financial statements and also
the narrative and descriptive information when it is relevant for understanding of the current year's financial statements.
Previous year's figures have been rearranged, wherever necessary, to conform to current year's presentation.
43. Interim dividend
Bata paid an interim dividend @ Tk. 22.50 per share of Tk. 10 each aggregating to Tk. 307,800,000 which was approved by the
Board of Directors at its 231st meeting held on 24 November 2016.
44. Events after the reporting period
The Board of Directors of Bata, at its 232nd meeting held on 27 April 2017, proposed Tk. 10.50 per share, amounting to a total of
Tk. 143,640,000 as final dividend for the year ended 31 December 2016, which represents 105% of the paid up capital. Total dividend
for the year ended 31 December 2016 including the interim dividend (see note 43) thus comes to Tk. 451,440,000 which is 330% of
paid up capital. These dividends are subject to final approval by the shareholders at the forthcoming Annual General Meeting of the
Company.
69
45. Basis of measurement

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.
46. Significant accounting policies

The Company has consistently applied the following accounting policies to all periods presented in these financial statements,
except as explained in note 46(c) which addresses review of useful lives of property, plant and equipment by management
during the year 2011.
Set out below is an index of the significant accounting policies, the details of which are available on the pages that follow.
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(a) Foreign currency 70
(b) Financial instruments 70
(c) Property, plant and equipment 71
(d) Inventories 72
(e) Impairment 72
(f) Share capital 73
(g) Employee benefits 73
(h) Provisions 73
.c
(i) Revenue 73
(j) Lease payments 73
(k) Finance income and expense 74
(l) Tax 74
(m) Earnings per share 74
(n)
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Segment reporting 74
(o) Duty drawback 74
(p) Sales proceeds from wastage, scrap etc. 74
(q) Workers' profit participation fund (WPPF) 74
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(r) Events after the reporting period 75
(s) Comparatives and rearrangement 75
(a) Foreign currency

Transactions in foreign currencies are translated to the respective functional currencies of the Company at exchange rates
on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies on the reporting date are
retranslated to the functional currency at the exchange rate at that date.
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Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate on the date that the fair value was determined. Non-monetary items in a foreign
currency that are measured based on historical cost are translated using the exchange rate on the date of the transaction.
Foreign currency differences arising on translation are recognised in profit or loss.
(b) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
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instrument of another entity.

Non-derivative financial assets
The Company initially recognises loans and receivables and deposits on the date that they are originated. All other financial
assets are recognised initially on the trade date, which is the date the Company becomes a party to the contractual provisions
of the instrument.
ANNUAL REPORT 2016
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the
risks and rewards of ownership of the financial asset are transferred.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only
when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset
and settle the liability simultaneously.
The Company classifies non-derivative financial assets into the following categories: financial assets at fair value through
profit or loss, held-to-maturity financial assets, loans and receivables and available for- sale financial assets.
70
Form of Proxy
Financial assets at fair value through profit or loss

A financial asset is classified as at fair value through profit or loss if it is classified as held for trading or is designated as such
on initial recognition. Attributable transaction costs are recognised in profit or loss as incurred. Financial assets at fair value
through profit or loss are measured at fair value and changes therein, which takes into account any dividend income, are
recognised in profit or loss.

Held-to-maturity financial assets
If the Company has the positive intent and ability to hold debt securities to maturity, then such financial assets are classified
as held to maturity. Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable
transaction costs. Subsequent to initial recognition, held-to-maturity financial assets are measured at amortised cost using
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the effective interest method, less any impairment losses.
Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such
assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition,
loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses.
Accounts receivables

Accounts receivables represent the amounts due from institutional customers, export customers etc. Accounts receivables
are stated net off bad debts provision.
.c
Provision for doubtful debts is made based on the Company policy. Bad debts are written off on consideration of the status
of individual debtors.
Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, cash in transit and cash at bank including fixed deposits having maturity
d
of three months or less which are available for use by the Company without any restriction. Bank overdrafts that are repayable
on demand and form an integral part of the Companys cash management are included as a component of cash and cash
equivalents.

Available-for-sale financial assets
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Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale or are not
classified in any of the above categories of financial assets. Available-for-sale financial assets are recognised initially at fair
value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair value and
changes therein, other than impairment losses and foreign currency differences on available-for-sale debt instruments, are
recognised in other comprehensive income and presented in the fair value reserve in equity. When an investment is
derecognised, the gain or loss accumulated in equity is reclassified to profit or loss. Available for sale financial assets
comprise security deposits.
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Non-derivative financial liabilities

The Company recognises all financial liabilities on the trade date which is the date the Company becomes a party to the

contractual provisions of the instrument.
The Company derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.
Financial liabilities comprise trade and other creditors only.
Trade and other creditors

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The company recognises a financial liability initially at fair value less any directly attributable transaction costs. Subsequent
to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.
(c) Property, plant and equipment

Recognition and measurement
Items of property, plant and equipment excluding land are measured at cost less accumulated depreciation and accumulated
impairment losses. Land is measured at amount revalued in 1979.
Cost includes expenditures that are directly attributable to the acquisition of assets. The cost of self-constructed assets
includes the following:
- the cost of materials and direct labour;
- any other cost directly attributable to bringing the asset to a working condition for the intended use;
- when the Company has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and
removing the items and restoring the site on which they are located; and
- capitalised borrowing costs.
71
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items
(major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and
equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is
recognised in profit or loss.
Subsequent costs
Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the
expenditure will flow to the Company. Ongoing repairs and maintenance is expensed as incurred.
Depreciation
Items of property, plant and equipment are depreciated on a straight-line basis in profit or loss over the estimated useful lives
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of each component. Land is not depreciated.
Addition during the year of property, plant and equipment are depreciated for full year irrespective of date of acquisition, while
no depreciation is charged in the year of disposal.
The estimated useful lives for the current and comparative years of property, plant and equipment are as follows:
Year
2016 2015
Building 40 40
.c
Plant and machinery 13.33 13.33
Motor vehicles 5 5
Furniture, fixtures and equipment 4-13.33 4-13.33
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. The
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useful lives and depreciation method of certain type of property, plant and equipment were revised in 2011.
Under construction
Property, plant and equipment that is being under construction/acquisition is accounted for as capital work in progress until
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construction/acquisition is completed and measured at cost.
(d) Inventories
Inventories except raw material in transit are measured at the lower of cost and net realisable value. The cost of inventories
is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories, production or
conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of
manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal
operating capacity.
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Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and selling expenses.
(e) Impairment
Non-derivative financial assets

A financial asset not classified at fair value through profit or loss is assessed at each reporting date to determine whether
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there is objective evidence that it is impaired. A financial asset is impaired if objective evidence of impairment as a result of
one or more events that occurred after the initial recognition of the asset, and that loss events had an impact on the
estimated future cash flows of that asset that can be estimated reliably.
Financial assets measured at amortised cost

The Company considers evidence of impairment for financial assets measured at amortised cost at both a specific asset and
ANNUAL REPORT 2016
collective level. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount and the present value of the estimated future cash flows discounted at the assets original
effective interest rate.
Available-for-sale financial assets

Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair
value reserve in equity to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is the difference
between the acquisition cost, net of any principle repayment and amortisation, and the current fair value, less any impairment
loss recognised previously in profit or loss.
72
Form of Proxy
Non-financial assets
The carrying amounts of the Company's non-financial assets, other than inventories and deferred tax assets, are reviewed
at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the
recoverable amount of the asset is estimated. An impairment loss is recognised if the carrying amount of an asset or its
related cash-generating unit (CGU) exceeds its estimated recoverable amount.

(f) Share capital
Paid up capital represents total amount contributed by the shareholders and bonus shares issued by the Company to the
ordinary shareholders. Holders of ordinary shares are entitled to receive dividends as declared from time to time and are
entitled to vote at shareholders' meetings. In the event of a winding up of the Company, ordinary shareholders rank after all
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other shareholders and creditors and are fully entitled to any residual proceeds of liquidation.
(g) Employee benefits

The Company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees. The
eligibility is determined according to the terms and conditions set forth in the respective deeds.
Defined contribution plan
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate

entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution
plans are recognised as an employee benefit expense in profit or loss in the periods during which related services are
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rendered by employees.
The Company maintains three contributory provident funds for its permanent employees categorised as managers, officers
and supervisors and workers. The Company also maintains a managerial staff pension fund which was a defined benefit as
contribution plan. These are administered by the Boards of Trustees.
Defined benefit plan
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A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Companys net obligation
in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that

employees have earned in return for their service in the current and prior periods.
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The Company maintains an unfunded gratuity scheme, provision in respect of which is made annually for all the employees.
Gratuity payable at the end of each year has been determined on the basis of existing rules and regulations applicable to the
Company. Actuarial valuation of the gratuity fund is carried out by a professional actuary.
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if
the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the
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employee, and the obligation can be estimated reliably.
(h) Provisions

A provision is recognised if, as a result of past event, the Company has a present legal or constructive obligation that can
reliably be estimated, and it is probable that an outflow of economic benefits will be required to settle the obligation.
(i) Revenue
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Revenue from the sale of goods in the course of ordinary activities is measured at fair value of the consideration received or
receivable, net of returns and allowances, Value Added Tax and trade discounts.
Revenue is recognised when persuasive evidence exists that the significant risks and rewards of ownership have been
transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can
be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be
measured reliably.
(j) Lease payments

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease.
Lease incentives received are recognised as an integral part of the total lease expenses, over the term of the lease.
At inception of an arrangement, the Company determines whether such an arrangement is or contains a lease. This will be
the case if the following two criteria are met:
- the fulfilment of the arrangement is dependent on the use of a specific asset or assets; and
- the arrangement contains a right to use the asset(s).
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(k) Finance income and expense

Finance income comprises interest income on funds invested, interest on shop managers account held with the Company
and foreign exchange gain on translation of foreign currency that are recognised in profit or loss. Interest income is
recognised on accrual basis.
Finance expense comprises interest expense on overdraft, finance lease and interest on shop managers account held with
the Company and foreign exchange loss on translation of foreign currency. All finance expenses are recognised in the
statement of comprehensive income.
(l) Tax
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Income tax expense comprises current and deferred tax. Income tax expense is recognised in the statement of
comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is recognised
in equity.
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively 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 25%.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
entity.
d .c
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences when they are reversed, based on the laws that have been enacted or
substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right
to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the 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 tax benefit will be realised.
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(m) Earnings per share
The Company presents basic and diluted (when dilution is applicable) earnings per share (EPS) for its ordinary shares. Basic
EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company with the weighted average
number of ordinary shares outstanding during the period, adjusted for the effect of change 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 statements as there was no dilutive potential ordinary
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shares during the relevant periods.
(n) Segment reporting

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 Companys other
components. All operating segments operating results are reviewed regularly by the Companys management to make
decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial
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information is available.
Segment results that are reported to the management include items directly attributable to a segment as well as those that
can be allocated on a reasonable basis.
(o) Duty drawback

Duty drawback claimed on export sales is adjusted against cost of imported raw materials.
ANNUAL REPORT 2016
(p) Sales proceeds from wastage, scrap etc.

Sales of empty drum of chemicals, split leather and other wastage of materials have been adjusted with cost of raw materials
consumed.
(q) Workers' Profit Participation Fund (WPPF)

The Company provides 5% of its profit before charging such expense as WPPF in accordance with "The Bangladesh Labour
Act 2006".
74
Form of Proxy
(r) Events after the reporting period

Events after the reporting period which provide additional information about the Company's position at the date of statement
of financial position or those that indicate the going concern assumption is not appropriate are reflected in the financial
statements. Events after the reporting period that are not adjusting events are disclosed in the notes when material.
(s) Comparatives and rearrangement

Comparative information has been disclosed for all numerical information in the financial statements and also the narrative
and descriptive information when it is relevant for understanding of the current financial statements.
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To facilitate comparison, certain relevant balances pertaining to the previous year have been rearranged or reclassified
whenever considered necessary to conform to current year's presentation.
47. Standards adopted but not yet effective

The Institute of Chartered Accountants of Bangladesh (ICAB) has adopted following new standards and amendments to
standards during the year 2015. All previously adopted reporting standards are consistently applied by the Company to the
extent relevant for the Company.

New standards
BFRS 9
Instruments
Summary of the requirements
.c
Financial "BFRS 9, published in July 2014, replaces the existing guidance in BAS 39
Financial Instruments: Recognition and Measurement. BFRS 9 includes
d
revised guidance on the classification and measurement of financial
instruments, a new expected credit loss model for calculating impairment
on financial assets, and new general hedge accounting requirements. It
Possible impact on
financial statements
The Company is
assessing the potential
impact on its financial
statements resulting
from the application of

also carries forward the guidance on recognition and derecognition of BFRS 9.
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financial instruments from BAS 39.
BFRS 9 is effective for annual reporting periods beginning on or after 1
January 2018, with early adoption permitted."
BFRS 15 Revenue "BFRS 15 establishes a comprehensive framework for determining The Company is
from Contracts with whether, how much and when revenue is recognised. It replaces existing assessing the potential
Customers revenue recognition guidance, including BAS 18 Revenue, BAS 11 impact on its financial
Construction Contracts and BFRIC 13 Customer Loyalty Programmes. statements resulting
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from the application of

BFRS 15 is effective for annual reporting periods beginning on or after 1
BFRS 15.
January 2018, with early adoption permitted."

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Exhibit - I

Statement of Profit or Loss and other Comprehensive Income
for the year ended 31 December
In Taka Manufacturing Trading 2016 2015
Revenue 7,656,920,387 1,127,632,930 8,784,553,317 8,522,801,619
Cost of goods sold (4,342,981,416) (624,256,597) (4,967,238,013) (5,094,404,901)
Gross profit 3,313,938,971 503,376,333 3,817,315,304 3,428,396,718
Exchange gain/(loss) 1,302,307 197,874 1,500,181 5,239,590
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Other income 1,789,826 - 1,789,826 8,259,742
Administration, selling and distribution expenses (2,037,879,259) (309,637,455) (2,347,516,714) (2,195,830,942)
Operating profit 1,279,151,845 193,936,752 1,473,088,597 1,246,065,108
Finance income 24,187,995 3,675,149 27,863,144 28,842,956
Finance expenses (3,026,606) (459,866) (3,486,472) (4,309,610)
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Net Finance Income 21,161,389 3,215,283 24,376,672 24,533,346
Profit before contribution to WPPF 1,300,313,234 197,152,035 1,497,465,269 1,270,598,454
Contribution to WPPF (64,997,480) (9,875,783) (74,873,263) (63,529,923)
Profit before tax

d 1,235,315,754 187,276,252 1,422,592,006 1,207,068,531
Income tax expense (363,892,175) (15,681,825) (379,574,000) (375,324,000)
Profit for the year 871,423,579 171,594,427 1,043,018,006 831,744,531

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Other comprehensive income, net of tax - - - -
Total comprehensive income 871,423,579 171,594,427 1,043,018,006 831,744,531

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ANNUAL REPORT 2016
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Printed by: OGRO Printing & Packaging Industry

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Bata report 2016.

qxp:Layout 1 6/4/17 2:40 PM Page 1

our annual report 2016

02 Vision, Mission & Values

cwiPvjKgjx 04 Board of Directors

Kvvwbi Z_ 11 Company Information

evwlK mvaviY mfvi wew 13 Notice of Annual General Meeting

Product Development & Merchandising

Human Resources, Corporate Social

mfvcwZi fvlY 22 Chairman's Statement

cwiPvjKgjxi cwZe`b 26 Directors' Report

KcviU Mfb 30 Corporate Governance

Kgcvq mvwUwdKU 38 Compliance Certificate

wbixv KwgwUi cwZe`b 39 Audit Committee Report

wbixK`i cwZe`b 41 Auditors' Report

wwZc 42 Statement of Financial Position

jvf-jvKmvb wnmve 43 Statement of Profit or Loss and

BKzBwU cwieZbi weeiY 44 Statement of Changes in Equity

bM` A_ cevni weeiY 45 Statement of Cash Flows

wnmvei wUKvmg~n 47 Notes to the Financial Statements

cw dig 79 Form of Proxy

To help people look and feel good.

Vision, Mission & Values

SERVE WITH PASSION BE BOLD COUNT ON ME

Mr. Rajeev Gopalakrishnan (Indian national) has been the Chairman

Mr. Chitpan Kanhasiri

Mr. Chitpan Kanhasiri (Thai national) has been the

Vision, Mission & Values

Mr. K. M. Rezaul Hasanat

Mr. K. M. Rezaul Hasanat (Bangladeshi national) has been a

Mr. Subrata Dutta (Indian national) was appointed as Head of

Mr. Omar Faisal Chowdhury (Bangladeshi national) was

Notice of Annual General Meeting

Mr. Md. Hashim Reza (Bangladeshi national) was appointed

Chartered Secretaries of Bangladesh.

Mr. Tapan Bala (Bangladeshi national) was appointed as Head

evwlK mvaviY mfvi wew

UsMx, 27 Gwcj 2017

gvt nvwmg iRv

Retail & Marketing events

Notice of annual general meeting

Tongi, 27 April 2017

Md. Hashim Reza

product innovation, market

Company opened 11 new

turnover of Tk. 73.1 million.

Retail & Marketing events

Notice of annual general meeting

Bata Bangladesh has received

2016 as No. 1 Shoe brand in Bangladesh.

most valuable assets. This platform for the

In our manufacturing operations we undertook some further

produced 26.6 million pairs of shoes.

Retail & Marketing events

Notice of annual general meeting

Retail & Marketing events

Notice of annual general meeting

BCP BANGLADESH ADOPTED A SCHOOL FOR

educational, volunteering by employees as well as emotional

Mojar School was established on 10 January, 2013 by some

CELEBRATION OF EID-UL-FITR WITH

CELEBRATION OF INDEPENDENCE DAY WITH

SCHOOL SHOE /DRESS & WINTER JACKET FOR THE

STUDENTS OF BATA ADOPTED SCHOOL