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Bata (Czech: Baa, pronounced [ baca] orBaovy zvody) is a large, family-owned shoe

company established in Zln, modern-day Czech Republic and currently headquartered in

Lausanne, Switzerland. Bata operates three business units worldwide Bata Metro Markets,

Bata Emerging Markets and Bata Branded Business. It has a retail presence in over 70 countriesand production facilities in 27 countries. In its history the company has sold more than 14

billion pairs of shoes.

HISTORY

The company was founded in 1894 in Zln (then in the Austro-Hungarian Empire, today in the

Czech Republic) by Tom Baa (Czech pronunciation: [ toma baca] ), whose family hadbeen cobblers for generations. A large order from the army for military footwear, and rising

demand for them during World War I, started the company's rapid growth and a small

manufacturing company grew into a modern industrial concern, one of the first mass producers

of shoes.

Tom Baa was recognised for his social consciousness: he established housing, cinemas and

advancement programmes for his employees. The phrase "work collectively, live individually"

is one of his sayings. Baa recognised the potential of large-scale production, and was often

called the "Henry Ford ofEastern Europe". He saw technology as a means of progress, and

wanted to make the shoes as cheaply as possible so that the greatest number of people could

buy them.

In 1932, at the age of 56, Tom died in a plane crash at Zln Airport (attempting to take off

under bad weather conditions) and his half-brotherJan Antonn Baa became head of the

company.

At the time of Tom's death, the Baa company employed 16,560 people, maintained 1,645

shops and 25 enterprises. Most of what Tom had built was centralised in Bohemia and

Moravia (15,770 employees, 1,500 shops, 25 enterprises) and Slovakia (250 employees and 2

enterprises). The total international contribution to the Baa organisation at the time of Tomas's

death consisted of 20 international enterprises, 132 shops and 790 employees.

During World War II

Germany occupied the remaining part of pre-war Czechoslovakia on 15 March 1939. Jan

Antonn Baa then spent a short time in jail, but was then able to leave the country with his

family. He tried to save as much as possible[of the country or of the business?], submitting to the plans of

Germany as well as financially supporting the Czechoslovak Government-in-Exile led by

Edvard Bene.

Foreign factories were separated from the mother company, and ownership of plants in

Bohemia and Moravia was transferred to another member of the family.

http://en.wikipedia.org/wiki/Czech_languagehttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Shoehttp://en.wikipedia.org/wiki/Zl%C3%ADnhttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Lausannehttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Zl%C3%ADnhttp://en.wikipedia.org/wiki/Austro-Hungarian_Empirehttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Tom%C3%A1%C5%A1_Ba%C5%A5ahttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Shoemakinghttp://en.wikipedia.org/wiki/World_War_Ihttp://en.wikipedia.org/wiki/Tom%C3%A1%C5%A1_Ba%C5%A5ahttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/Eastern_Europehttp://en.wikipedia.org/wiki/Jan_Anton%C3%ADn_Ba%C5%A5ahttp://en.wikipedia.org/wiki/Bohemiahttp://en.wikipedia.org/wiki/Moraviahttp://en.wikipedia.org/wiki/Slovakiahttp://en.wikipedia.org/wiki/Wikipedia:Cleanuphttp://en.wikipedia.org/wiki/Czechoslovak_Government-in-Exilehttp://en.wikipedia.org/wiki/Edvard_Bene%C5%A1http://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Shoehttp://en.wikipedia.org/wiki/Zl%C3%ADnhttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Lausannehttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Zl%C3%ADnhttp://en.wikipedia.org/wiki/Austro-Hungarian_Empirehttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Tom%C3%A1%C5%A1_Ba%C5%A5ahttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Shoemakinghttp://en.wikipedia.org/wiki/World_War_Ihttp://en.wikipedia.org/wiki/Tom%C3%A1%C5%A1_Ba%C5%A5ahttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/Eastern_Europehttp://en.wikipedia.org/wiki/Jan_Anton%C3%ADn_Ba%C5%A5ahttp://en.wikipedia.org/wiki/Bohemiahttp://en.wikipedia.org/wiki/Moraviahttp://en.wikipedia.org/wiki/Slovakiahttp://en.wikipedia.org/wiki/Wikipedia:Cleanuphttp://en.wikipedia.org/wiki/Czechoslovak_Government-in-Exilehttp://en.wikipedia.org/wiki/Edvard_Bene%C5%A1http://en.wikipedia.org/wiki/Czech_language

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Present

After the global economic changes in 1990s, the company closed a number of its manufacturing

factories in developed countries and has focussed its activities on expanding its retail business

there. In developing countries it still has a large number of manufacturing units and stillproduces a significant number of shoes each year.:

The company is currently headquartered in Lausanne, Switzerland, with 3 business units

Bata Metro Markets, Lausanne Bata Emerging Markets, Singapore

Bata Branded Business, Best, Netherlands

Current shoe brands are:

Bata (Baa in former Czechoslovakia) Bata Premium (handcrafted dress shoes)

Bata Industrials (safety footwear)

Bubblegummers (children)

Power (athletic shoes)

Marie Claire (women)

Hush Puppies (Premium) [Hush Puppies is owned by WolverineWorldwide and not Bata]

North Star (youth)

Weinbrenner (Premium Outdoor Shoes)

Scholl (Popular Comfort category)[Scholl belongs to Reckitt Benkiser &earlier SSL International plc. UK]

Naturalizer (Premium women category)[Naturalizer belongs to BrownShoe Co., USAccording to Bata, in 2007, the company served 1 million customersper day, employed over 40,000 people, operated 4,600 retail stores,managed a retail presence in over 50 countries and had 40 productionfacilities across 26 countries.

Opportunity

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Bata India Limited has undertaken initiatives to improvethe company's cost structure and

margins.The company has initiated a financial restructuringexercise to down its interest cost.

Financial re-engineering.

The company has tightened controls on costs in all areasof and is looking at global sourcing for

raw materials andother inputs.

Bata India is also exploring third-party manufacturingunits in Assam and Jammu & Kashmir as

these enjoy taxholidays.

Bata Shoe Organization (BSO) has decided to give abreather to its 51 per cent subsidiary

PRINCIPLES OF BATA

The Board of Directors of Bata India Limited have unanimously approved the following

Code of Conduct at its meeting held on January 11, 2005 which will be applicable to all

its Board Members and Senior Management.

This Code is accordingly being posted on the Company's Website as required by Clause

49 of the Listing Agreement.

Act in the best interests of, and fulfill their fiduciary obligations to the Companys

shareholders.

Act honestly, fairly, ethically and with integrity.

Conduct themselves in a professional, courteous and respectful manner;

Comply with all applicable laws, rules and regulations;

Act in good faith, responsibly, with due care, competence and diligence, without allowing

their independent judgement to be subordinated ;

Act in a manner to enhance and maintain the reputation of the Company;

Disclose potential conflicts of interest that they may have regarding any matters that maycome before the Board and abstain from discussion and voting on any matter in which the

Director has or may have a conflict of interest;

Respect the confidentiality of information relating to the affairs of the Company acquired

in the course of their service as Directors or Senior Management except when authorised

or legally required to disclose such information; and

Not use confidential information acquired in the course of their service as Directors or

Senior Management for their personal advantage.

MISSIONS Support of culture, education and ability to develop values of society and theentrepreneurial spirit thanks to which the name Bata has become famous.

Respecting the integrity of local cultures

Considering communities as partners in progress and involving employees in a two-way

communication with them.

Allocating resources to enhance the well-being of the communities in which we operate.

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Collaborating with people in the communities who are dedicated to raising standards of

education and economic well being.

SHARE MARKETBATA SHOE MARKET VALUEBata India is trading 4.06% higher at BSE. Currently the sharesare trading at Rs 215.25 compared with its previous close of Rs206.85. A total of 5,69,508 shares have changed hands at BSE.(03:29 pm)

Bata India, the country`s largest manufacturer and marketer offootwear products, is planning to open 200 stores in 3 years.

It is learnt that the company is in talks with major players includinghotels. The company managed by four regional meaningful business units(MBUs), plans to continue its focus on shoes

The construction on `Bata Nagar` is believed would begin by year end-2006.

The stock has shown a rise of 5.41% over the week and 33.57% over lastmonth.

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ANNUAL REPPORT

Particulars 2003 2002 2001 2000 1999 1998Sales 7,113,996 6,941,860 7,599,833 7,601,520 7,736,446 7,431,749Less: Excise Duty 373,032 444,604 392,500 409,286 420,773 327,845

Net Sales 6,740,964 6,497,256 7,207,333 7,192,234 7,315,673 7,103,904

Other Income 52,989 106,045 162,114 11,390 9,825 15,971Total Expenditure 6,797,458 6,501,329 7,119,118 6,721,057 6,640,467 6,508,516Interest 78,574 83,169 90,924 89,103 68,366 77,864Gross Profit / (Loss) (82,079) 18,803 159,405 393,464 616,665 533,495Depreciation 131,203 130,788 134,853 140,471 135,799 123,625Profit / (Loss)

before Tax (213,282) (111,985) 24,552 252,993 480,866 409,870Excise Duty under

KVSS -- -- -- -- -- 140,137Provision for

Taxation (2,031) (6,114) 1,879 97,000 176,301 27,167Provision for

Deferred Tax 49,250 (31,768) (17,122) -- -- --Net Profit / (Loss) (260,501) (74,103) 39,795 155,993 304,565 242,566Paid-up Equity

Share Capital

514,221 514,221 514,221 514,221 514,220 514,217

Reserves excluding

Revaluation

Reserves1,141,964 1,402,465 1,476,568 1,474,980 1,403,986 1,193,517