Bata India

1.  In the opinion of the Board of Directors of the Company, Loans and
 Advances have a realisable value at least at the amounts at which they
 are stated.
 
 2.  Cash Credit facilities with Banks are secured by hypothecation of
 stock of raw materials, work-in-progress, finished goods, stores and
 spare parts and book debts.
 
 3.  Leases
 
 Assets Taken on Operating Lease
 
 a) The Company has taken various residential, office, warehouse and
 shop premises under operating lease agreements. These are generally not
 non-cancellable and are renewable by mutual consent on mutually agreed
 terms.
 
 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 (PY: Rs. Nil).
 
 4.  Miscellaneous Expenditure - Voluntary Retirement Scheme
 
 During the year, the Company has incurred Rs. 94,288 (PY: Rs.11,980) on
 account of voluntary retirement schemes introduced at its Batanagar and
 Faridabad units.
 
 5.  Contingent Liabilities not provided for in respect of:
 
 - Claims against Company not acknowledged as debts includes
 
 Nature                               2008        2007   
 
 Excise and Customs Cases           227,200     556,550
 Sales Tax Cases                     37,100      37,100
 Others                             188,541     171,578
 Total                              452,841     765,228
 
 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. 780,002 (PY Rs. 1,003,000).
 
 The JV company will fulfil the obligation of development of 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.
 
 6.  21,230 (PY: 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.
 
 7.  Estimated amount of contracts remaining to be executed for capital
 expenditure and not provided for amounted to Rs. 93,320 (PY: Rs.
 55,472).
 
 8.  Manufacturing, Distribution, Selling and Administration expenses
 (Schedule 18) includes R&D Expenses of Rs.30,974 (PY : Rs. 18,223).
 
 9.  At the beginning of the year the Company had Rs.9,937 as balance
 unutilised money raised from Right issue for meeting the working
 capital needs, renovation and modernisation of the Retail Stores,
 installation of Point of Sales (POS) machines at retail outlets and
 meeting the right issue expenses. During the year, Rs. 9,937 is
 utilized for installation of Point of Sales (POS) machines at retail
 outlets.
 
 10.  In accordance with Explanation below Para 10 of Notified AS 9,
 excise duty on turnover amounting to Rs. 253,843 (PY: Rs. 233,052) has
 been reduced from turnover in profit & loss account and differential
 excise duty on opening and closing stock of finished goods amounting to
 Rs. 25,229 [PY: Rs. (2,733)] has been adjusted from Raw Materials,
 Finished Goods, Work in Progress and Job Processing charges in Schedule
 -17.
 
 11. All the figures are in thousands unless otherwise stated.
 
 12. Figures in brackets stated in Schedule 1 to 22 represents the
 corresponding figures of previous year.
 
 13. Previous Year figures have been regrouped, where necessary to
 confirm to current years classification.