1. While retaining the legal title over the land at Batanagar Project
 and shares in the Joint Venture Company, Riverbank Developers Private
 Limited (RDPL), Bata India Limited has restructured its agreements with
 revised terms and conditions for the development of the modern
 integrated township project at Batanagar. In consideration of the
 restructured agreement, the Company shall receive an aggregate amount
 of Rs.1,000,000 thousands for future transfer of shares in the JV
 Company and variation of the development rights. The Company had
 already received Rs.700,000 thousand for variation of Development right
 and Rs.100,000 thousand for future transfer of Shares in JV Company. In
 addition, the Company will also receive 640,000 sq feet of constructed
 space free of cost in the project over a defined period of time. These
 agreements have been entered on 28th April 2010.
 
 Since conditions precedent to recognizing sale of investment and
 variation of rights in the joint development agreement have not
 crystallized till the year end, hence the Company has not recognized
 any gains on account of these new agreements.
 
 2.  (a) Cash Credit facilities & Working Capital Demand Loans with
 Banks are secured by hypothecation of stock of raw materials, work-in-
 progress, finished goods, stores and spare parts, book debts and other 
 current assets.  (b) During the year, the Company has mortgaged its 
 investment in immovable property to a body corporate for disbursement 
 of term loan and non fund based limit in favour of the Joint Venture 
 Company.
 
 3.  Leases
 
 Assets Taken on Operating Lease
 
 a) The Company has taken various residential, office, warehouse and
 shop premises under operating lease agreements. The lease agreements
 generally have an escalation clause and there are no subleases.  These
 leases are generally not non-cancellable and are renewable by mutual
 consent on mutually agreed terms. There are no restrictions imposed by
 lease agreements.
 
 b) The aggregate lease rentals payables are charged as Rent in
 Schedule 18.
 
 The future minimum lease payments under non-cancellable operating
 leases: Rs. Nil (Previous Year: Rs. Nil).
 
 4.  Expenditure Incurred on Voluntary Retirement Scheme
 
 During the year, the Company has incurred Rs.9,270 thousands (Previous
 Year: Rs. 14,605 thousands) on account of voluntary retirement schemes
 introduced at its Mokamehghat, Batagunj and Faridabad units and are
 grouped under Salaries, Wages and Bonus in Schedule 18.
 
 5.  B.  Related Party Transaction Details i.  Sale of Goods:
 
 Details of sales to Fellow Subsidiaries which are material (more than
 10% of the total sales to the Related Parties)
 
 vi.  Transaction with Subsidiaries :
 
 Details of transaction with Subsidiaries which are material (more than
 10% of the total transaction with the Related Parties)
 
 * As the liabilities for gratuity and leave encashment are provided on
 an actuarial basis for the Company as a whole, the amounts pertaining
 to the directors are not included above.
 
 6.  C.  Related Party Disclosure
 
 I.  Where Control Exists :
 
     Nature of relationship        Name
 
     A.  Holding Company  :  BATA (BN) B.V. The Netherlands, Amsterdam
 
     B.  Jointly Control
         Entity           :  Riverbank Developers Private Limited
 
     C.  Subsidiaries     :  Bata Properties Ltd. and
                             Coastal Commercial & Exim Limited
 
 II. Where Control Does Not Exists :
 
     Nature of relationship          Name
 
     A.  Key Management 
         Personnel        :  Marcelo Villagran — Managing Director
                             Shaibal Sinha — Director Finance upto 
                             07.09.2010 Fadzilah Mohd. Hussein
                             Director Finance w.e.f.  01.10.2010
 
 B.  Fellow Subsidiaries with whom transactions have taken place during
 the year :
 
 Company Name                        Company Name
 
 Compar S.P.A.                       Bata Industrial Europe
 
 Bata Shoe Singapore Pte. Ltd.       Compass Limited
 
 Global Footwear Services Pte. Ltd.  Bata Shoe Co. 
                                     (Bangladesh) Ltd.
 
 Bata Malaysia SDN. BHD.             Bata Shoe Co. of Ceylon Ltd.
 
 P.T. Sepatu Bata Tbk                Shoe Innovation Centre Europe Srl
 
 Bala Limited                        Bata Shoe of Thailand Public
 
 Bata Brands S.A.R.L.                Bata Chile S.A.
 
 
 7 Segment Reporting
 
 The Company operates in two segments - Footwear & Accessories and
 Investment in Joint Venture for Surplus Property Development. The
 Company has chosen business segments as its primary segments
 considering the dominant source and nature of risks and returns and the
 internal organisation and management structure.
 
 A description of the types of products and services provided by each
 reportable segment is as follows:
 
 Footwear & Accessories: The Segment is engaged in the business of
 manufacturing and trading of footwear and accessories items through its
 retail and wholesale network.
 
 Investment in Joint Venture for Surplus Property Development : The
 segment is involved in development of real estate at Batanagar.
 
 B INFORMATION ABOUT SECONDARY SEGMENTS
 
 b) The Company has common fixed assets for producing goods for Domestic
 Market and Overseas Market. Hence, separate figures for fixed assets /
 additions to fixed assets cannot be furnished.
 
 8.  Contingent Liabilities not provided for in respect of:
 
 - Claims against Company not acknowledged as debts includes
 
 Nature                      2010 (Rs.000s)     2009 (Rs.000s)
 
 Excise and Customs cases        163,220            190,140
 
 Sales Tax Cases                  34,200             34,200
 
 Others*                         217,790            174,798
 
 Income Tax Cases**              230,552               -
 
 Total                           645,762            399,138
 
 * Others include individually small cases pertaining to rent labour etc
 
 ** During the assessment proceedings, the assessing Officer has revised
 the computation of Capital Gains on Transfer of Development Rights to
 RHPL in the year 2007 by treating it as Short Term instead of the Long
 Term and thus raised a demand of Rs. 230,552 thousands on the Company.
 However as per the Joint Development Agreement entered in December
 2006, liability of Income Tax on such transfer, if any, will be borne
 by JV Company.  On the basis of current status of individual cases and
 as per legal advice obtained by the Company, wherever applicable, the
 Company is confident that no provision is required in respect of these
 cases at this point in time.  - Future obligations imposed by the Govt
 of West Bengal in respect of property project are Rs.731,802 thousands
 (Previous Year Rs. 739,985 thousands).
 
 The JV company will fulfil the obligation of development of 56 acres
 (Previous Year: 88 acres) of land for social and economic purposes as
 per conditions imposed on the Company by Government of West Bengal. The
 transaction value is not ascertainable at this point of time.
 
 9.  21,230 (Previous Year: 21,230) equity shares of Rs. 10 each were
 held in abeyance on account of pending adjudication of the
 shareholders right to receive those shares / inability of depository
 to establish ownership rights.
 
 10.  Estimated amount of contracts remaining to be executed for capital
 expenditure and not provided for amounted to Rs. 79,555 thousands
 (Previous Year: Rs. 109,176 thousands).
 
 11.  a) The movement of provision for warranty claims is as follows:
 
 The warranty claim provision covers the expenses relating to the
 repairing / cost of shoes sold which are covered by a warranty period
 of 60 days from the date of sale. Liability in respect of warranties is
 provided on the basis of valuation carried out by an independent
 actuary as at year end. It is expected that cost will be incurred over
 the warranty period as per warranty terms.
 
 b) The breakup and movement of provision for contingencies are as
 follows: (Amount in Rs. ‘000s)
 
 The Company sets up and maintains provision for trade related and other
 litigations or disputes when a reasonable estimate can be made. The
 amounts of provisions are based upon estimates provided by the
 Companys legal department which are revisited on a timely basis. The
 exact timing of the settlement of the litigations and consequently, the
 outflow is uncertain.
 
 (i) In view of large number of labour cases and other civil cases, it
 is not practicable to disclose the details of each case separately. The
 exact timing of the settlement of the litigation and consequently, the
 outflow is uncertain.
 
 17. Gratuity and other post-employment benefit plans:
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at 
 the rate of 15 days salary (last drawn salary) for each completed year of
 service. The scheme is funded through the companies own trust.
 
 The Company has also provided long term compensated absences which are
 unfunded.
 
 The following tables summarise the components of net benefit expense
 recognised in the profit and loss account and the funded status and 
 amounts recognized in the balance sheet for the respective plans.
 
 Profit and Loss account
 
 Net employee benefit expense (recognised in Contribution to Gratuity,
 Pension & Provident Funds)
 
 The Defined benefit obligation amounting to Rs. 346,551 thousands is
 funded by assets amounting to Rs.352,181 thousands and company has
 contributed Rs. 5,630 thousands excess during the year 2010. The
 Company expects to contribute Rs. 60,000 thousands during the year
 2011.
 
 The overall expected rate of return on assets is determined based on
 the market prices prevailing on that date, applicable to the period
 over which the obligation is to be settled.
 
 The estimates of future salary increases have been considered in
 actuarial valuation based on inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 
 18.  Manufacturing, Distribution, Selling and Administration expenses
 (Schedule 18) include Research & Development Expenses of Rs. 49,257
 thousands (Previous Year: Rs. 33,877 thousands).
 
 19.  As per the requirements of Accounting Standard (AS-27) Financial
 Reporting of Interest in Joint Ventures, the Companys interest in the
 Joint Venture Companies is as follows:
 
 Name of the Company:- Riverbank Developers Private Limited
 
 Nature:- Jointly Controlled Entity
 
 Nature of Business:- Development of Real Estate
 
 Country of Incorporation:- India
 
 (%) of Holding as on December 31, 2010 :- 50
 
 Additionally, there is a contingent liability relating to Stamp duty in
 the Joint venture Company as at December 31, 2010, which is not
 ascertainable.
 
 During the previous year, one of the contractor had filed compensation
 claim on the JV Company and a counter claim has also been filed by the
 JV Company. The management is of the views that claim filed by the
 Contractor is not tenable as per law and accordingly, no adjustments,
 if any, arising out of such claim or counter claim had been made in
 financials of JV Company.
 
 20. In accordance with Explanation below Para 10 of Notified AS 9,
 excise duty on turnover amounting to Rs. 188,945 thousands (Previous
 Year: Rs. 209,365 thousands) has been reduced from turnover in profit &
 loss account and differential excise duty on opening and closing stock
 of manufactured finished goods amounting to Rs. (6,094) thousands
 [Previous Year: Rs. 42,991 thousands] has been adjusted from Cost of
 Goods Sold in Schedule -17.
 
 21 Previous Year figures have been regrouped or reclassified, where
 necessary, to conform to current years classification.