Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 - Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 The sustained restructuring and re-engineering initiatives adopted by
the management in the last four years, have yielded positive results
reconfirming / reinforcing the Companys belief that it is on a
sustainable growth and profit path. The Board would like to thank its
shareholders, its bankers, suppliers, employees and associates for
their full support and confidence in the initiatives taken by the
Management, during these difficult times. All the sustainable growth
for the Company, will translate into better profits, hopefully enhance
share price, and greater market capitalization.

One of the very significant achievement of the Company, in 2007, is the

successful retail restructuring. Your Directors hope that our
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 shareholders have been noticing the improved service from our
modernized / new stores, making us more competitive and in a position
to serve our customers better.

Your Company has achieved a net turnover of Rs.8,674.8 million in 2007

as compared to Rs.7,702.0 million in 2006, which is a growth of 12.6%.

The results of the year 2007 reflect the sustainability of the

Companys turnaround which began in 2004 with restructuring efforts &
subsequent innovation (in product and retail formats), both of which
still continue. The Company has made a Profit before tax of Rs.551.5
Million in the year 2007. Profits of 2006 included Rs.171.3 million one
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 time exceptional item. Without considering the exceptional item of
2006, the increase in Profit before tax for the year 2007 is 72.1% over
the previous year. The increase is attributable to stricter cost
control, improved product mix, new shoe designs, renovation of existing
stores, consolidation & specialization of factories and continued
transformation of the wholesale business.

All these improvements were possible, as a result of the following new

initiatives taken by the management during the year in addition to the
other initiatives which had begun in the earlier years:

* Retail Restructuring.
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 * Franchisee model has been introduced in all the new stores.

* Staff cost has reduced (20.6% of turnover in 2007 against 23.3% of

turnover in 2006) and the retail business has been focusing on
continued flexibility through restructuring measures taken by the
management.

* Cash Drain Stores have been reduced to 74 in 2007 against 140 in

2006.

* The wholesale business has started generating higher EBIT, 4.04%

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 (2007) against 1.72% (2006).

* The credit has been restricted to a maximum of 45 days sales.

* Creation of three independent distribution channels in the wholesale

business: (1) Urban (2) Institutional / Safety (3) Branding.

* Focus on distributors who have the requisite capability of powering

growth.

* Specializing production in factories.

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 * Building a strong team of dedicated employees through in-house and
outside the Company training, besides recruiting high caliber
personnel.

The Company continues its endeavour to strengthen its relationships and

gain confidence and trust of the Banks, credit rating agencies,
investors, shareholders, suppliers and employees.

The management is also focusing on improving performance by renovating

existing stores, which were not renovated for the last several years,
and aggressive retail expansion. This will enable the Company to grow
faster than the industry.
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 AWARDS AND RECOGNITION

Your Company has won the following Awards in 2007 which signifies the
strong perception and preference of its brand vis a vis other competing
brands.

The Awards won by the Company in 2007 are as follows :-

Award Date

AMITY Corporate Excellence 21st February, 2008

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Award 2008
IMAGES Retail Award 6th September 2007
Outstanding Sales Awards 17th - 19th May 2007
Super Brands Award 12th April 2007
Lycra Images Fashion Awards 25th January 2007

Details

This award has been given for Batas excellent performance and retail
growth during 2007. This award has been given after extensive research
and is backed by information available from primary and secondary
sources and it has been awarded by an eminent panel of judges.
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Bata received the countrys most coveted Retail Award at the 4th IMAGES
Retail Awards (IRA) 2007.

This award was given by Wolverine World Wide, for increase of sales by
21% of Hush Puppies Brands during 2006.

Bata has been rated as one of the Top Ten Super Brands in India. Super
brand signifies the recognition that the consumer is giving to the
Brand Image, Brand Value and Brand Delivery. The award ceremony was
held in Mumbai by Superbrands.

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Bata was honoured with Most Admired Brand of the year in Footwear
Category Year 2006-07.

RETAIL

Retail business during the year increased by Rs. 862.9 million, i.e. by
14%. Retail business has grown mainly due to the following measures
taken by the management on an ongoing basis :

* Improvement in shoeline including Ladies Fashion Lines.

* Renovation of the existing stores and opening of new stores.

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 * Focus on Customer Service.

* Continuing to maximize sale of value for money products.

* Extending Shopping hours.

* Improving communication with customers and employees.

WHOLESALE

The Wholesale business has shown a considerable improvement and the

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 margins in this business are gradually increasing. The Company is
concentrating its Wholesale business with only the top 300 wholesalers
who are in a position to carry on business on commercial terms
introduced by the Company in 2005. Business with wholesalers who have
defaulted in paying the Company have been curtailed or totally stopped.
With the introduction of better shoelines which will give improved
margins to the Company, the wholesale business will gradually improve
in the years ahead.

EXPORT

Export Sales in 2007 were Rs. 94.1million compared to Rs.108.2 million

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 in 2006. The Companys focus is on exports which yield profits which
are the same or better than the domestic market.

LOGISTICS

The Company has a well organized Logistics Team at Gurgaon which

controls the distribution process and ensures that footwear of the
right size is available at the right place at the right time to
consumers all over the country. The Companys endeavour is to keep
improving its distribution taking into account the rapid changes in
consumer preference and shopping practices through greater use of IT
inputs.
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 CAPITAL EXPENDITURE

The Capital Expenditure incurred during the year amounted to Rs. 273.0
million as against Rs. 170.9 million in 2006. The increase in capital
expenditure was due to opening a number of new stores and modernization
of old stores. Capital Expenditure has also been incurred for
machinery, moulds and information technology.

INDUSTRIAL RELATIONS AND PERSONNEL

The Industrial Relations in the factories were peaceful and cordial

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 during 2007.

In the new fiercely competitive business environment nothing endures

but change. Only those companies which change fast internally and
externally will survive as winners.

Your company is facing immense competition from imported footwear,

particularly from China, organized domestic manufacturers and the
unorganized sector. The restructuring of the Retail operations of the
Company last year has given the Company more flexibility to carry on
its business driven by market environment such as keeping many shops
open for longer hours and on all days wherever permissible. Concept of
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 productivity has been introduced in the retail stores. Manpower
rationalization has been completed thereby optimizing cost in the
stores.

To develop the culture of entrepreneurship, the Company has encouraged

existing employees to take the new stores as a franchisee. Most of the
new stores have been given to our existing employees.

Long Term Agreements have been arrived at with the unions at Bataganj
and Southcan manufacturing units with emphasis on productivity and
flexibility in operations.

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 The Company has continued to improve the performance of its employees
through various training and development programmes conducted in India
and abroad.

Information in terms of Section 217 ( 2A) of the Companies Act, 1956

read with Companies ( Particulars of Employees) Rules 1975 is set out
in an Annexure to this Report.

FINANCE

Bank borrowings at the year end 2007 are Rs.450.7 million against
Rs.560.8 million for the corresponding period in the year 2006. This
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 is a significant reduction and reflects the Companys improved
management of its financial resources.

R&D ACTIVITIES AND ENERGY CONSERVATION

The Company continued R&D activities during the year in the key areas
of product, process, material development, footwear moulds, leather and
tannery technology with emphasis on creating a pollution-free work
environment. Total expenditure incurred on R & D was Rs.19.25 million
during the year.

The company continues to pursue energy conservation measures.

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 STATUTORY AUDITORS

The Auditors of the Company Messrs. S R Batliboi & Co., Chartered

Accountants, Kolkata retire at the ensuing Annual General Meeting of
the Company and have given their consent for re-appointment. The
Company has also received a Certificate from them under Section
224(1-B) of the Companies Act, 1956.

COST AUDITORS

In compliance with the Central Government Order your Board has

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 appointed Messrs. Mani & Co.-, Cost Accountants to carry out the Cost
Audit of the Company in respect of Footwear. This appointment has to be
made in each financial year and an application has been forwarded to
the Centred Government to renew the appointment for the current
financial year.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the
Articles of your Company, Mr. P. M. Sinha and Mr. R. Rizzo, Directors
of the Company, retire by rotation at the ensuing Annual General
Meeting of the Company and being eligible offer themselves for
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 re-appointment to the Board of your Company.

Mr M K Sharma was appointed as an Additional Director on the Board of

your Company with effect from January 24, 2008. The Company has
received a notice in writing from a Member of the Company under Section
257 of the Companies Act, 1956 signifying his intention to propose the
appointment of Mr M K Sharma as a Director of the Company.

BATANAGAR PROJECT

Your Company is developing around 262 acres of its surplus land at

Batanagar. For the purpose of developing this land a Special Purpose
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Vehicle named Riverbank Holdings Private Limited (RHPL) has been
created which is a 50:50 joint venture between your Company and
Calcutta Metropolitan Group Limited (CMGL).

In order to capitalize on the positive investment climate a strategic

equity partner, viz. Saffron Assets Advisors (SAA) has been inducted
with 50% stake for the development of IT SEZ over a land area of 25
acres for a sum of Rs. 1176.0 M. This infusion of equity will largely
help ease out the burden on financing, mortgage, for our entire Real
Estate Project.

Consequently, the development of 262 acres has been split into two
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 parts, IT SEZ for 25 acres to be developed by RHPL and the rest of the
development of 237 acres, will be done by a new Company, Riverbank
Developers Pvt. Ltd. (RDPL).

For accomplishing this new arrangement steps have been taken by RHPL to
alter its Memorandum and Articles of Association and to also increase
its Paid Up Share Capital by inducting Yatra which is managed by
Saffron Assets Advisors and the Fund operates in the name of K2A
Commercial.

After all the above re-structuring your Company and CMGL will hold the
equity of RDPL on 50:50 basis and RDPL and K2A Commercial will hold the
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 equity in RHPL (IT SEZ) on 50:50 basis.

The development of Batanagar Township has won the prestigious CNBC

International Property Award 2008 (Asia- Pacific) :-

- Best Development Category in India : The Princep, Calcutta Riverside

- Best Golf Development Category : Golf Green, Calcutta Riverside.

DIRECTORS RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217 (2AA) OF

THE COMPANIES ACT, 1956.

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 The Directors hereby confirm :-

i) that in the preparation of the annual accounts, the applicable

accounting standards had been followed along with proper explanation
relating to material departures;

ii) that the Directors had selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the Company for that period ;

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 iii) that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;

iv) that the Directors had prepared the Annual Accounts on a going
concern basis.

SUBSIDIARY COMPANIES

As required under Sec 212 of the Companies Act, 1956, the Audited
Balance Sheet and Profit & Loss Account along with the respective
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Reports of the Board of Directors and the Auditors thereon of the
subsidiary companies for the year ended 31 December 2007 are attached.

CORPORATE GOVERNANCE

The Company believes that Corporate Governance is a way of business

life than legal compulsion. The Company is committed to the application
of best management practices, compliance with law, adherence to ethical
standards and discharge of social responsibilities.

Corporate Governance Report as well as Corporate Governance Compliance

Certificate are provided as separate Annexures to this Report.
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 MANAGEMENT RESPONSE TO AUDITORS COMMENTS & QUALIFICATIONS MADE IN THE
AUDITORS REPORT

In response to the Audit qualification mentioned in the Annual Report -

2007, the Company has since collected the required information under
the Micro, Small and Medium Enterprises Development Act, 2006, and
there is no liability on account of this any longer.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT :-

INDUSTRY STRUCTURE AND DEVELOPMENT

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 The Indian Footwear market is estimated to be about Rs. 10,000 crore in
value terms and is growing at the rate of 10 per cent annually. Mens
footwear accounts for almost half of the total market with womens
shoes constituting 40 per cent and kids footwear making up for the
remainder.

India is the second largest footwear manufacturer in the world next

only to China. Nearly 58 per cent of the industry, which is by and
large labour intensive and concentrated in the small and cottage
industry sectors, remains unbranded. However, as part of its effort to
play a lead role in the global trade, the Indian Leather Industry is
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 now focusing on key deliverables of innovative designs,
state-of-the-art production technology and unfailing delivery
schedules.

OPPORTUNITIES AND THREATS

The footwear retailing in India has remained largely focused on Mens

shoes. There exists a huge opportunity in the exclusive Ladies and
Kids footwear segments with no organized retailing chain having a
national presence in either of these categories. It is expected that in
line with the global trends, women segment has a good opportunity to
grow. Of the total footwear market, Ladies shoes accounts for almost 40
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 per cent and the unorganized sector controlling a major portion of this
market, indicating that there is a significant marketing opportunity
for the organized players in this segment.

With increasing number of educated working women joining the workforce

they are becoming increasingly brand conscious which will ultimately
bring in more and more internationally renowned players to the Indian
market. Further, given Indias sizeable young population, the market
for childrens footwear is yet to be fully explored. Your Company has
taken note of these opportunities and we will be filling this need-gap
to capitalize on the emerging opportunities in the organized Retail
segment. With the emergence of a wealthier middle class who are fashion
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 conscious, there will be a demand in the sports and casual wear
segments, which throws open great opportunities for your Company. We
would also like to offer the best shopping experience to our customers
and make our presence felt in prime locations, best located urban Malls
and cities.

In the face of growing competition from leading multinational players

domestic footwear retailers have also risen to the opportunities. They
are realizing that exposure of the domestic consumers to shopping
standards abroad have made Indian consumers demand the same formats and
experience in this country. Your Company is responding to this
challenge and we have significantly transformed the Retail formats
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 which are comparable to any other retail formats of the Company in the
other parts of the world.

To face the growing competition, your Company would need to make more
investments in new stores and to train and retain the workforce. Cost
and quality are indispensable elements of doing business in this
competitive regime. Towards this end, your Company will pursue
induction of modem technology and if necessary, adapt further
automation and mechanization in its operations to ensure improvements
in product quality and reduce variability in the same. Manpower
productivity both in factories and stores, will need to be
significantly improved if the Company has to remain competitive in the
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 current market context so as to ensure that wage costs for production
and servicing as a percentage of sales are contained while paying fair
wages to its employees.

With the opening up of the FDI in retailing, the Company will face even
stiffer competition from foreign and domestic retail players who plan
to enter the footwear market in a big way. However, your Company enjoys
a significant brand loyalty with the Indian consumers which has been
established over a period of seven-decades and this will insulate the
Company to a certain extent from the onslaught of new competition.
Threats exist from small, medium enterprises, which due to their low
cost of production and tax advantage have a price advantage. There are
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 threats also from low cost Chinese, Korean and Taiwanese footwear. Your
Company needs to focus on specialized production, rationalization of
manpower and to effectively manage the supply chain wherever necessary
through appropriate IT systems to ensure that not a single customer is
dissatisfied due to non availability of size and style. As competition
becomes more and more intense success of any retail format will be to
convert footfalls into sales.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company operates in two segments, Manufacturing & Sale of Footwear

and Investment in Joint Venture for Surplus Property Development. The
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Company has chosen footwear business as its primary segment,
considering the dominant source and nature of risks and returns and
continues to improve the internal organization and management
structure.

OUTLOOK

2007 has shown that the Company has been on the( right track and as a
result of the restructuring process the Company has shown the best
results ever in its history. The management believes that this
turnaround is sustainable and the Company will continue on a growth
trajectory. Your Company has the potential to perform even better by
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 expanding aggressively both in its retail and wholesale operations.
Your Company has entered into Long Term Agreements with the Factory
Unions with special emphasis on productivity and flexibility.

The Company believes that its human resources are its best assets and
employees are being encouraged to come out with innovative ideas and
suggest better ways of doing things.

With the development of 262 acres of surplus land at Batanagar the

Company will get substantial funds to expand the business.

RISKS AND CONCERNS

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Contingent Liability

There are some claims against the Company which has not been
acknowledged as debts which is mentioned in note no. 16 of schedule 21
of the schedules to the Statement of Accounts. On the basis of current
status of these cases and legal advise obtained, the Company is
confident that no provision is required in respect of these cases at
this point in time.

Litigation

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 The Company is defending several legal cases connected with or
incidental to its business operations. These include civil cases,
excise and customs cases, labour cases, etc. and the outcome of these
could affect Companys profitability. Your Company is pursuing /
defending these cases with due diligence based on professional legal
advice and believes that its submissions are sound and the outcome of
these cases is unlikely to cause a materially adverse effect on the
Companys performance. ,

The Company seeks to protect the intellectual property rights used in

its business through appropriate measures including civil and criminal
legal actions against infringers and counterfeiters of such IPR. The
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Company has to a significant extent, through these measures, succeeded
in containing the menace of infringements and counterfeiting.

Trade Unions

The Company has several recognized Trade Unions. Any adverse

relationship with the employees can affect the operations of the
Company. However, the Company enjoys harmonious relationship with all
employees.

The Company operates in globally competitive business environment

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 The Company operates in a globally competitive business environment.
With the opening of the Indian economy and competition maintaining its
market share is a major challenge.

Risk related to changes in Laws and Regulations

Any change in the laws and regulations governing the leather and
footwear industry could adversely affect the business and financial
condition of the Company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 The Company has an adequate system of internal controls in place to
ensure that all assets are safeguarded and protected and that
transactions are authorized, recorded and reported correctly.

The internal controls are constantly monitored by an extensive program

of internal audits.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL

PERFORMANCE

The Company has returned to profitable growth for the third consecutive
year and the Management believes that this is sustainable, barring
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 unforeseen circumstances.

The Company is in a position to declare a dividend after not doing so

for the past five years.

The Company has opened 67 new stores and remodeled 40 existing stores
during the year. Better shoeline, aggressive sales pricing, optimum
procurement of finished goods and better negotiation on raw materials
has resulted in the improvement in margins.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCE / INDUSTRIAL RELATIONS FRONT,

INCLUDING NUMBER OF PEOPLE EMPLOYED
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 People Employed

Total no of permanent employees are - 7854 on December 31, 2007. Human

Resources / Recruitment / Training

* The company is re-enforcing Performance Linked Salary at all levels

of employees so that a culture of accountability can be developed. All
the executives & managers have been given clear goals / objectives for
the year.

* We have a robust selection process and antecedent verification has

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 been made mandatory for all selected candidates.

* A strategy is being formulated to retain best talent in the company

and reduce attrition rates.

* Training and development of employees has been the focus area of the
company.

* Evaluation of our employees performance has been improved so that

promotion and recognition are awarded only to deserving candidates.

Industrial Relations
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Manufacturing

* The company has entered into Long Term Agreement with the unions at
Bataganj and Southcan manufacturing units with emphasis on productivity
and flexibility in operations.

Retail

* Retail Restructuring has been implemented and concept of productivity

per person has been introduced in the stores.

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 * Manpower rationalization has been done in the retail stores. Shop
Managers have signed individual agreements and have been given
Performance linked salary increase.

* Wherever possible we are keeping our major stores open for 365 days
in a year in States where we have permission to do so to serve our
customers better.

* Shop Managers who had been terminated for insubordination and

indiscipline have approached the Central Labour Commissioner for
relief. Labour Department has referred the case to National Industrial
Tribunal. We have obtained stay against the reference from Delhi High
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 Court.

* Terminated shop employees case is pending in the Mumbai Labour Court.

CAUTIONARY STATEMENT

Statements in the Managements discussion and analysis report

describing the Companys estimates, expectations or predictions may be
forward-looking statements within the meaning of applicable
securities laws and regulations. Actual results could differ materially
from those expressed or implied. Important factors that would make a
difference to the Companys operations include demand-supply
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 conditions, raw material prices, changes in Government regulations, tax
regimes, economic developments within the country and other factors
such as litigation and labour negotiations.

CONCLUSION

The Directors place on record their sincere appreciation for the

cooperation and support received from investors, customers, business
associates, bankers, vendors as well as regulatory and governmental
authorities. The Directors also thank the employees for the significant
contribution made by them to enable the Company to turnaround. Your
Directors now look to the future with confidence and optimism.
Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by

 For and on behalf of the
Board of Directors

Directors Report Year End : Dec '

The Directors have pleasure to present the 75th Annual Report of your
Company covering the operating and financial performance for the year
ended December 31, 2007.

During the year, your Company achieved an important milestone of

completing 75 years of service to the Indian consumer which has enabled
it to earn the love and respect of Indians, both urban and rural, rich
and poor, through provisions of quality products at fair prices at
easily accessible outlets in every part of the country. Your Directors
wish to acknowledge that this success is the result of lot of hard work
and dedication by people involved in the operations of the Company and
the trust and confidence of investors, banks, financial institutions
and continued support and guidance from Central and State Governments.

FINANCIAL REVIEW:

2007 2006
(in Rs 000) (in Rs 000)

Turnover 8,907,886 7,948,220

Less: Excise Duty 233,052 246,167
Net Turnover 8,674,834 7,702,053
Other Income 130,163 271,566
8,804,997 7,973,619
Profit / (Loss) before Depreciation & Tax 711,607 627,996
Less : Depreciation 160,107 136,174
Profit / (Loss) before Taxation 551,500 491,822
Provision for Taxation :
- Current Tax 50,944 77,310
- Deferred Tax-(Net credit) (20,320) --
- Fringe Benefit Tax 10,000 13,000
Profit after Taxation & Before Prior Period
Items 510,876 401,512
- Prior Period Items 36,436 --
Net Profit 474,440 401,512
Available for Appropriation 875,952 401,512

DIVIDEND

The Directors have recommended a dividend of 15% on equity shares with

an additional dividend of 5% to celebrate 75 years of BATA in India,
aggregating to a total dividend of 20%.

OPERATIONS

The sustained restructuring and re-engineering initiatives adopted by