Bata Shoe Company (Bangladesh) Limited

Statement of profit or loss and other comprehensive income

For the period ended 30 September 2021
2021 2020 2021 2020
Jan-Sep Jan-Sep Jul - Sep Jul - Sep
Taka Taka Taka Taka
Revenue 5,437,195,368 3,447,763,226 1,423,515,839 1,398,491,187
Cost of sales (3,537,788,729) (2,669,276,094) (939,345,142) (1,121,154,510)
Gross profit 1,899,406,640 778,487,132 484,170,697 277,336,677
Exchange gain/(loss) (2,551,020) (3,711,175) (4,542,520) (2,927,580)
Other income/(loss) (3,691,237) (6,773,209) (1,786,381) (5,019,313)
Administration, selling and distribution expenses (1,879,265,732) (1,843,558,954) (564,834,286) (737,404,760)
(1,885,507,989) (1,854,043,338) (571,163,187) (745,351,653)
Operating profit 13,898,651 (1,075,556,206) (86,992,490) (468,014,976)
Finance income 14,309,986 6,943,746 6,934,876 2,808,547
Finance expense (105,893,558) (120,391,882) (32,010,180) (39,730,427)
Net finance income/(Loss) (91,583,571) (113,448,136) (25,075,304) (36,921,880)
Profit before contribution to WPPF (77,684,921) (1,189,004,342) (112,067,794) (504,936,856)
Contribution to workers' profit participation fund - - 1,719,144 -
Profit/(loss) before tax (77,684,921) (1,189,004,342) (110,348,650) (504,936,856)
Income tax expense (70,000,000) (31,600,000) (4,000,000) (8,800,000)
Profit/(loss) for the year (147,684,921) (1,220,604,342) (114,348,650) (513,736,856)
Other comprehensive income - - - -
Total comprehensive income/(loss) (147,684,921) (1,220,604,342) (114,348,650) (513,736,856)

Earnings per share:

Basic earnings/(loss) per share (par value Tk 10) in Taka (10.80) (89.23) (8.36) (37.55)
- -
-

Vice - Chairman & Director

Managing Director

CFO / Finance Director Company Secretary

 Bata Shoe Company (Bangladesh) Limited
Statement of cash flows
for the period ended 30 September 2021
202r 2020
Taka Taka

Cash flows from operating activities

Cash receipts from customers fr-JjjJs473, @-jtA
Cash payments to and on behalfofemployees I ose.ztoruoi I orc,ss6;4Dl
Cash payments for deferred liabilities
Cash payments to suppliers and contractors for goods and services
II I
r:,s ,E!lil4tl l
-l (e.33r,s80)l
Q.7e4.677.038)l
Cash generated from operating activities 891,436,333 326,707,364

Interest received 14,309,986 6,943,746

Interest paid (10s,893,558) (120,39t,882)
Income tax paid (127,900,087) (190,46r.512)
Net cash from operating activities 671,952,674 22,797,716

Cash flows from investing activities

Proceed from sales ofproperty, plant and equipment sfuAl
Acquisition of property, plant and equipment
Net cash used in investing activities
I I rsq,zqs,issrl
rrs,rgr,a+sil
(17,865,243) (3p,778.s35)
Cash flows from financing activities -62all-
(335,719,059) (401,898,580)
Payment of Iease liability
Dividend paid (79,s44,864\ (169,08f,67s)
Net cash used in financing activities (415,263,922') (570,984,255)
Net cash increase(decrease) in cash and cash equivalents 2q8,8p.sq8 (ssq,e65,074)
Cash and cash equivalents at I January 125,919,383 7t1,089,617
Cash and cash equivalents at 30 June 364,742,891 124,124,543

Closing cash and cash equivalents have been arrived at as follows

Cash and cash equivalents _95!"7!?.8e1 _n!,!2!$43
Net Operating Cash Flow Per Share (NOCFPS) 49.12 1.67

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Notes to the financial statements (continued)

1. Reporting entity

Bata Shoe Company (Bangladesh) Limited (hereinafter referred to as "Bata" or "the Company") is a
public company limited by shares. It was incorporated in Bangladesh in 1972 under the Companies Act
1913. The address of the registered office of the Company is situated at Tongi, Gazipur, Bangladesh. The
Company is one of the operating companies of worldwide Bata Shoe Organization (BSO) and a subsidiary
of Bafin (Nederland) BV in Netherlands holding 70% of the Company's shares. The shares of the
Company are listed in both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).

Pursuant to recent amendment to the Companies Act 1994 incorporating certain amendments, among
others, is to change of the word "Limited" by the word "PLC" in case of Public Limited Companies
including listed ones. Necessary formalities are in progress in implementing these changes.

The Company is mainly engaged in manufacturing and marketing of leather, rubber, plastic, canvas
footwear, hosiery and accessories items. Manufacturing plants of the Company are situated at Tongi and
Dhamrai.
2. Basis of preparation of financial statements
2.1 Basis of accounting

The interim condensed financial statements have been prepared on a going concern basis in accordance
with International Accounting Standards (IASs), International Financial Reporting Standards (IFRSs), the
Companies Act, 1994, the Securities and Exchange Rules, 1987, Financial Reporting Act. 2015 and other
applicable laws in Bangladesh.

The titles and format of these interim condensed financial statements follow the requirements of IFRSs
which are to some extent different from the requirements of the Companies Act, 1994 and the Securities
and Exchange Rules, 1987. However, such differences are not material and in the view of management
IFRSs titles and format give better presentation to the shareholders.

These interim condensed financial statements were authorised for issue by the Board of Directors at its
251th meeting held on 31 May 2021.

2.2 Basis of measurement

Unless otherwise specifically mentioned, these financial statements have been prepared on historical cost
basis in the statement of financial position.

2.3 Functional and presentational currency

These financial statements are presented in Bangladeshi Taka which is both functional and presentational
currency of the Company. All financial information are presented in Taka and have been rounded off to
the nearest Taka unless otherwise indicated.

2.4 Use of judgments and estimates

In preparing these financial statements, management has made judgments, estimates and assumptions that
affect the application of the Company's accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to estimates are
recognized prospectively wherever applicable.
Notes to the financial statements (continued)

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment in the period ending 31 March 2021 is included in the following notes:

Note 5 Property, plant and equipment, net

Note 5.2 Right-of-use asset (ROU)
Note 5.3 Leases
Note 6 Deferred tax assets/(liabilities)
Note 7 Inventories
Note 8 Trade and other receivables
Note 13 Employee benefits
Note 17 Accrued expenses
Note 19 Current tax liabilities
Note 31 Capital expenditure and financial commitment

3. Significant accounting policies

The same accounting policies and methods of computation have been followed in these condensed interim
financial statements as were applied in the preparation of the financial statements of Bata Shoe Company
(Bangladesh) Limited as at and for the year ended 31 December 2020.
Notes to the financial statements (continued)

5. Property, plant and equipment

Furniture, fixtures
Plant and and office Under
In Taka Freehold land Building machinery Vehicles equipment construction Total

Cost
Balance at 1 January 2020 86,057,856 404,006,785 839,526,123 21,072,963 1,296,244,682 38,762,601 2,685,671,010
Additions - 14,835,003 3,121,901 - 58,451,632 15,654,134 92,062,670
Transfers - - - - - (52,887,852) (52,887,852)
Disposals - - - - (41,782,689) - (41,782,689)
Balance at 31 December 2020 86,057,856 418,841,788 842,648,024 21,072,963 1,312,913,625 1,528,883 2,683,063,139

Balance at 1 January 2021 86,057,856 418,841,788 842,648,024 21,072,963 1,312,913,625 1,528,883 2,683,063,139
Additions - 1,077,822 1,992,406 - 14,706,173 415,045 18,191,445
Transfers - - - - - - -
Disposals - - - - (9,859,147) - (9,859,147)
Balance at 30 September 2021 86,057,856 419,919,610 844,640,430 21,072,963 1,317,760,651 1,943,928 2,691,395,437

Accumulated depreciation
Balance at 1 January 2020 - 229,368,017 642,583,866 15,563,226 695,039,880 - 1,582,554,989
Depreciation for the year - 8,369,120 36,137,403 2,350,811 128,974,788 - 175,832,122
Adjustment for disposal/transfers - - - - (30,750,778) - (30,750,778)
Balance at 31 December 2020 - 237,737,137 678,721,269 17,914,037 793,263,890 - 1,727,636,333

Balance at 1 January 2021 - 237,737,137 678,721,269 17,914,037 793,263,890 - 1,727,636,333

Depreciation for the year - 6,106,955 25,516,427 1,370,934 49,341,873 - 82,336,189
Adjustment for disposal/transfers - - - - (5,839,060) - (5,839,060)
Balance at 30 September 2021 - 243,844,092 704,237,696 19,284,971 836,766,704 - 1,804,133,463

Carrying amounts
At 31 December 2020 86,057,856 181,104,651 163,926,756 3,158,926 519,649,735 1,528,883 955,426,807
At 31 September 2021 86,057,856 176,075,517 140,402,735 1,787,992 480,993,947 1,943,928 887,261,975

The Company revalued its land of Tongi factory at 1979 by Tk. 60,631,183.
Building includes properties at 24 Bangabandhu Avenue, Dhaka which were purchased in 1985 from the Government of Bangladesh at a cost of Tk 5,344,417. Sale deed is yet to be executed.

5.1 Allocation of depreciation

2021 2020
In Taka 30-Sep 30-Sep
Cost of sales 25,199,899 24,993,275
Administration, selling and distribution expenses 57,136,290 83,965,929
82,336,189 108,959,204
5.2 Right-of-use asset (ROU)

30 September 31 December
In Taka Note 2021 2020

Cost

Balance as at 1 January 2,546,228,559 2,182,187,610

Additions - 125,228,580
Disposals/Adjustments - (50,604,514)
Adjustment for remeasurement - 289,416,883
Closing Balance 2,546,228,559 2,546,228,559

Accumulated depreciation

Balance as at 1 January (1,047,349,994) (533,049,803)

Charged during the year (399,094,714) (563,798,570)
Disposals/Adjustments - 49,498,379
Closing Balance (1,446,444,707) (1,047,349,994)

Written down value as at period ended 1,099,783,852 1,498,878,565

5.3 Leases
30 September 31 December
In Taka Note 2021 2020

i) Lease liabilities recognized in statement of financial position

Lease liability - current portion 394,957,749 442,123,331

Lease liability - non-current portion 800,749,582 1,089,303,058
1,195,707,330 1,531,426,389

ii) Amounts recognized in profit or loss

Interest on lease obligation 98,318,269 155,520,526

Loss due to remeasurement of RoU Assets - 5,418,207
Depreciation expense 399,094,714 563,798,570
497,412,983 724,737,303

iii) Amounts recognized in statement of cash flows

Payment of lease liability- Financing activities 335,719,059 407,869,074

Inerest on lease liabilities- Operating activities 98,318,269 155,520,526
Total cash outflows for leases 434,037,328 563,389,600

iv) Interest rates

Between one (1) to twelve (12) years 9% 9%

Notes to the financial statements (continued)

6. Deferred tax assets (liabilities)

Deferred tax asset is arrived at as follows:

In Taka Note 2021 2020

30-Sep 31-Dec

Balance at 1 January (448,000,000) (123,000,000)

Addition during the year (1,500,000) (325,000,000)
Balance at period end (449,500,000) (448,000,000)

2021 Carrying
amount at Tax base Taxable/(deductibl
In Taka reporting date e temporary

Property, plant and equipment 796,359,455 767,081,039 29,278,416

Right of Assets (95,923,478) - (95,923,478)
Provision against personal accounts (36,813,880) (36,813,880)
Provision for impairment loss on trade receivable (624,100,654) - (624,100,654)
Unused Tax Losses 1,270,311,995 (1,270,311,995)
Net deductble temporary difference (1,997,871,591)
Applicable tax rate 22.5%
Deferred tax liability/(asset) as at 30 September 2021 (449,500,000)

2020 Carrying
amount at Tax base Taxable/(deductibl
In Taka reporting date e temporary

Property, plant and equipment 865,018,762 826,307,487 38,711,275

Right of Assets (32,547,824) - (32,547,824)
Provision against personal accounts (34,951,880) - (34,951,880)
Provision for impairment loss on trade receivable (624,100,654) - (624,100,654)
Unused Tax Losses - 1,143,397,916 (1,143,397,916)
Net deductble temporary difference (1,796,286,999)
Applicable tax rate 25%
Deferred tax liability/(asset) as at 31 December 2020 (449,071,750)
Deferred tax expense recognized in other comprehensive income 1,071,750
Deferred tax liability/(asset) as at 31 December 2020 (448,000,000)

6.3 Movement in deferred tax balances

2021 Recognised Balance as at 30 September

Net balance in profit Deferred tax Deferred tax
In Taka at 1 January or loss Net assets liabilities

Property, plant and equipment (9,677,818) (3,090,174) (6,587,644) - (6,587,644)

ROU assets 8,136,956 (13,445,827) 21,582,783 21,582,783 -
Provision for impairment loss on trade receivable 156,025,163 15,602,516 140,422,647 140,422,647 -
Personal account provision 8,737,970 454,847 8,283,123 8,283,123 -
Unused tax Losses 285,849,479 29,280 285,820,199 285,820,199 -
Rounded off - 21,108 (21,108) (21,108) -
DT for expense recognized in OCI (1,071,750) (1,071,750) - - -
Deferred tax assets (liabilities) 448,000,000 (1,500,000) 449,500,000 456,087,644 (6,587,644)
Net deferred tax assets 449,500,000

2020 Recognised Balance as at 31 December

Net balance in profit Deferred tax Deferred tax
In Taka at 1 January or loss Net assets liabilities

Property, plant and equipment (23,518,536) (13,840,718) (9,677,818) - (9,677,818)

ROU assets 25,674,508 17,537,552 8,136,956 8,136,956
Employee benefits 66,300,224 66,300,224 - - -
Provision for impairment loss on trade receivable 45,045,154 (110,980,009) 156,025,163 156,025,163 -
Personal account provision 8,644,220 (93,750) 8,737,970 8,737,970 -
Unused tax Losses - (285,849,479) 285,849,479 285,849,479
Rounded off 854,430 854,430 - - -
Deferred tax assets (liabilities) 123,000,000 (326,071,750) 449,071,750 458,749,568 (9,677,818)
Net deferred tax liabilities 449,071,750

Deferred tax income recognized in profit or loss (326,071,750)

Deferred tax expense recognized in other comprehensive income 1,071,750
Notes to the financial statements (continued)

Net deferred tax income (325,000,000)

7. Inventories

In Taka Note 2021 2020

30-Sep 31-Dec

Raw materials 544,178,485 358,684,378

Work in process 29,897,357 63,906,846
Finished goods 2,239,648,236 2,465,987,923
2,813,724,078 2,888,579,146
Notes to the financial statements (continued)

8. Trade and other receivables

In Taka Note 2021 2020

30-Sep 31-Dec
Trade receivables
- Export customers - Non BSO companies 1,355,617 1,348,457
- Export customers - BSO companies 1,370,837 -
- Receivables from dealers 660,622,306 747,634,805
- Receivables from E-commerce customers 37,312,063
- Receivables from institutional sale 18,086,112 44,140,157
718,746,936 793,123,419
Other receivables
- Receivable from PF Forfeited accounts 10,327,991 10,327,991
- VAT claims 3,352,933 4,663,052
- Interest receivable 5,240,007 -
- Insurance claim 6,433,390 8,123,876
25,354,321 23,114,919
744,101,258 816,238,338
Provision for doubtful debts 8.1 (624,100,654) (624,100,654)
120,000,604 192,137,684

8.1 Provision for impairment on trade receivables

In Taka Note 2021 2020

30-Sep 31-Dec

Balance as at 1 January 624,100,654 180,180,614

Provision made / (reverse) during the year/period - 443,920,040
Balance as on period end 624,100,654 624,100,654

9. Advances, deposits and prepayments

In Taka Note 2021 2020

30-Sep 31-Dec
Advances (considered good) to:
Agents and employees - 41,976,080
Suppliers against materials and services 15,437,330 10,511,658
15,437,330 52,487,738
Security and other deposits 313,647,530 407,375,142
Prepayments to landlords 28,238,299 35,588,547
357,323,159 495,451,427
10. Cash and cash equivalents

In Taka Note 2021 2020

30-Sep 31-Dec

Cash in hand 564,771 169,846

Cash at bank 364,178,120 125,749,537
364,742,891 125,919,383

11. Share capital

Taka in million Note 2021 2020

30-Sep 31-Dec
Authorised:
20,000,000 ordinary shares of Tk 10 each 200,000,000 200,000,000
200,000,000 200,000,000

Issued, subscribed and paid up:

2,850,723 ordinary shares of Tk 10 each issued for cash 28,507,230 28,507,230

10,829,277 ordinary shares (including 7,202,400 bonus shares)

of Tk 10 each issued for consideration other than cash 108,292,770 108,292,770
136,800,000 136,800,000
Notes to the financial statements (continued)

12. Reserves and surplus

In Taka Note 2021 2020

30-Sep 31-Dec

Reserve on revaluation of land 60,631,183 60,631,183

Non-distributable special reserve 12.1 998,620 998,620
General reserve 48,863,000 48,863,000
Retained earnings 12.2 3,236,211,569 3,418,096,490
3,346,704,372 3,528,589,293

12.1 Non-distributable special reserve

This represents 90% of the cumulative post-tax profit in respect of certain categories of income up to 1992 as defined and directed by Bangladesh
Bank. Since 1993, the requirement for continuing to create such special reserve is applicable only to the profit on sale of immovable assets such as
land, buildings etc.

12.2 Retained earnings

In Taka Note 2021 2020

30-Sep 31-Dec

Balance as at 1 January 3,418,096,490 4,741,076,478

Profit for the year/period (147,684,921) (1,326,195,238)
Other comprehensive income/(loss) - 3,215,250
Interim dividend - -
Final dividend (34,200,000) -
3,236,211,569 3,418,096,490

13. Employee benefits

This represents liabilities on account of gratuity payable to the permanent employees of the Company. This arrived at as follows:

In Taka Note 2021 2020

30-Sep 31-Dec

Balance as at 1 January - 265,200,896

Add: Provision made / (reversed) during the year/period - 47,912,104
- 313,113,000
Less: Paid during the year - 313,113,000
- -

14. Creditors for goods

In Taka Note 2021 2020

30-Sep 31-Dec

Payable to foreign suppliers 1,844,252

Payable to local suppliers 35,648,858 139,323,832
37,493,110 139,323,832

15. Creditors for expenses

In Taka Note 2021 2020

30-Sep 31-Dec

Payable to local suppliers 11,984,624 8,934,546

Payable to Global Footwear Services 79,620,263 71,084,194
Payable to BSO companies 571,842,726 420,886,359
Others - -
663,447,612 500,905,099

16. Creditors for other finance

In Taka Note 2021 2020

30-Sep 31-Dec

Personal accounts of employees and agents 103,880,293 97,784,057

Security and other deposits 29,897,292 30,897,987
Tax deducted at source 78,492,693 79,907,460
VAT deducted at source -
Salary and wages payable 67,061,883 97,690,319
Others 84,352,200 45,902,125
363,684,361 352,181,948
Notes to the financial statements (continued)

17 Accrued expenses

In Taka Note 2021 2020

30-Sep 31-Dec

Royalty 47,836,485 54,485,663

Utility 14,407,801 8,652,800
Legal and audit fee 2,128,056 2,086,500
Bonus 35,117,455 18,681,177
Joint venture commission 10,945,576 4,497,783
Other accrued liabilities 108,913,112 104,866,289
219,348,484 193,270,212

18 Unclaimed dividend 2021 2020

Taka'000 Taka'000
Balance at 1 January 45,525 215,252
Cash dividend paid 34,200 -
Unclaim dividend paid duirng the year (70,545) (169,727)
Balance at 30 September/31 December 9,180 45,525

18.1 Aging analysis of unclaimed dividend

Period Prior to 2019 2019 2020 2,021 Total
Unclaimed dividend at 01-Jan-21 43,111 2,414 - - 45,525
Unclaimed dividend at 30 September-21 5,725 2,311 1,144 - 9,180

19. Current tax liabilities

In Taka Note 2021 2020

30-Sep 31-Dec

Income tax paid 149,347,282 102,651,602

Provision for income tax 269,318,799 279,023,206
119,971,517 176,371,604

19.1 Income tax paid

In Taka Note 2021 2020

Balance at 1 January 102,651,602 218,488,005
Paid during the year for the
Income year ended 31 December 2021 46,695,680
Income year ended 31 December 2020 81,204,407 43,354,207
Income year ended 31 December 2019 169,658,298
230,551,689 431,500,510
Adjustment of advance tax on completion of assessment (81,204,407) (328,848,908)
Balance as on period end 149,347,282 102,651,602

19.2 Provision for income tax

In Taka Note 2021 2020

Balance at 1 January 279,023,206 550,872,114
Provision for the year 71,500,000 57,000,000
350,523,206 607,872,114
Adjustment of tax provision on completion of assessment (81,204,407) (328,848,908)
Balance as on period end 269,318,799 279,023,206
Notes to the financial statements (continued)

20. Revenue
Third quarter Third quarter
ended ended
In Taka 30-Sep-21 30-Sep-20

Local
Shoe 5,239,212,925 3,304,992,541
Hosiery & accessories 188,298,244 136,401,774
Export 9,684,199 6,368,911
5,437,195,368 3,447,763,226

21 Cost of goods sold

Third quarter Third quarter
ended ended
In Taka 30-Sep-21 30-Sep-20

Opening stock of finished goods 2,465,987,923 3,054,611,731

Add: Cost of goods manufactured (Note 20.1) 2,202,368,386 1,539,335,375
Finished goods purchased 1,109,080,655 824,250,222
5,777,436,964 5,418,197,328
Less: Closing stock of finished goods 2,239,648,236 2,748,921,234
3,537,788,729 2,669,276,094

21.1 Cost of goods manufactured

Cost of materials consumed (Note 20.1.1) 1,649,537,918 1,020,285,334

Direct wages 271,086,085 295,027,986

1,920,624,003 1,315,313,320

Manufacturing overhead 247,734,895 253,949,382

Difference in work in process:

Work in process at beginning 63,906,846 51,962,073
Work in process at closing 29,897,357 81,889,400
34,009,489 (29,927,328)
Cost of goods manufactured 2,202,368,386 1,539,335,375

21.1.1Cost of materials consumed

Opening stock of raw materials 358,684,378 212,288,154

Add: Purchase 1,835,032,026 1,301,345,021
Materials available for use 2,193,716,403 1,513,633,175

Less: Sale proceeds of wastage scrap - -

2,193,716,403 1,513,633,175
Less: Closing stock of raw materials 544,178,485 493,347,841
1,649,537,918 1,020,285,334
Notes to the financial statements (continued)

22. Other income

Third quarter Third quarter
ended ended
In Taka 30-Sep-21 30-Sep-20

Gain/(loss) on disposal of property, plant and equipment (3,691,237) (6,773,209)

(3,691,237) (6,773,209)

23. Finance income

Third quarter Third quarter

ended ended
In Taka 30-Sep-21 30-Sep-20
Interest on short term deposit 14,309,986 6,943,746

24. Finance expenses

Third quarter Third quarter

ended ended
In Taka 30-Sep-21 30-Sep-20
Interest on overdraft 7,575,288 11,134,734
Finance cost on lease liability 98,318,269 109,257,148
105,893,558 120,391,882

25. Income tax expenses

Third quarter Third quarter
ended ended
In Taka 30-Sep-21 30-Sep-20

Current tax expense 71,500,000 24,300,000

Deferred tax (income)/expense (1,500,000) 7,300,000
70,000,000 31,600,000

25.1 Reconciliation of effective tax rate

Third quarter ended Third quarter ended

In Taka'000 30 September 2021 30 September 2020
Percentage Taka Percentage Taka
Profit/(Loss) before tax (77,685) (1,189,004)
Factors affecting the tax charge for current period
Income tax using the Company’s domestic tax rate 22.50% (17,479) 25.00% (297,251)
Non-deductible expenses -131.08% 101,827 -2.04% 321,551
Under/(Over) Provided in prior year 1.93% (1,500) -0.61% 7,300
-106.65% 82,848 22.35% 31,600

26. Earning per Share (EPS)

Earnings attributable to the ordinary shareholders (147,684,921) (1,220,604,342)
Weighted average number of ordinary shares outstanding during the year 13,680,000 13,680,000
Basic and diluted earnings per share (EPS) (10.80) (89.23)

26.1 Diluted earnings per share

Notes to the financial statements (continued)
No diluted earnings per share is required to be calculated for the periods presented as Bata Shoe Company (Bangladesh)
Limited has no dilutive potential ordinary shares.

27. Net Asset Value (NAV) per share

In Taka 2021 2020

30-Sep-21 31-Dec-20

Net Asset Value 3,483,504,372 3,665,389,293

Weighted average number of ordinary shares outstanding during the year 13,680,000 13,680,000
Net Asset Value (NAV) per share 254.64 267.94

28 Reconciliation of net operating cash flows

Third quarter Third quarter
ended ended
Notes Taka('000) Taka('000)

Net (loss)/profit before tax (77,685) (1,189,004)

Adjustment for:
Depreciation on property, plant and equipment 82,336 136,279
Depreciation on right-of-use asset 399,095 410,936
Loss on disposal of non- current assets 3,691 6,773
485,122 553,988
Changes in
Inventories 74,855 (5,297)
Trade and other receivables 72,137 575,139
Advances, deposits and prepayments 147,131 79,264
Creditor for goods (101,831) 71,151
Creditor for expenses 162,543 (81,273)
Creditor for other finance 11,502 (7,297)
Accrued expenses 26,078 216,589
Cash generated from operating activities 392,416 848,276
Income tax paid (127,900) (190,462)
Net cash generated/(used) from operating activities 671,953 22,798
Notes to the financial statements (continued)
29. Net operating cash flow per share
Third quarter Third quarter
ended ended
In Taka 30-Sep-21 30-Sep-20

Net operating cash flow 671,952,674 22,797,716

Weighted average number of ordinary shares outstanding during the year 13,680,000 13,680,000
Net Operating Cash Flow Per Share (NOCFPS) 49.12 1.67

30 Related party transactions

30.1 Parent and ultimate controlling party

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

30.2 Transaction with key management personnel

Amount in Taka (000')
Nature of Nature of Transaction for the period Balance outstanding
relationship transactions 2021 2020 2021 2020
Directors Emoluments 24,002 22,953 - -
Top Managers Emoluments 56,689 54,513 - -

30.3 During the period ended 30 September 2021, the Company entered into a number of transactions with related parties/ associated
enterprises in the normal course of business. Relationship with related parties/ associated enterprises, nature of these transactions
and amount thereof have been set out below in accordance with the provisions of IAS 24: Related Party Disclosures.

In Taka'000
Nature of Transaction values Balance outstanding
Nature of transactions
relationship 30-Sep-21 31-Dec-20 30-Sep-21 31-Dec-20
Holding company Dividend payment (23,940) - - -

Associated Purchase of goods (41,298) (54,965) (1,839) (6,011)

companies Service received (552) (6,405) - -
Sales of goods 1,364 - 1,371 -
Trade mark license fees (199,358) (129,775) (635,381) (459,119)

31. Commitments
Third quarter Third quarter
ended ended
In Taka 30-Sep-21 30-Sep-20
Capital commitment (open purchase order) for PPE 4,234,273 2,093,213
Capital commitment (open purchase order) for goods 715,605,546 487,331,181
719,839,819 489,424,394

32. Significant deviations

32.1 During the 3rd quarter period 2021, the company's revenue increased by 152% in compare with the same period of the last
year due to boost sales and clear of aged merchandise by offering a bulk amount of discount to the customers. On the same
period ended 30th June 2021, cost of goods sold increased by 124% in compare with the same period ended of last year

32.2 Earnings per share (EPS) increased for higher net profit compare to the same period of the last year driven by increased
sales, and maintain expenses in proportion of turnover though at the same time continuing the 2nd wave of Covid-19.

32.3 Net operating cash flow per share increased compare to last year mainly for increased of business.
Notes to the financial statements (continued)

33 Comparatives and rearrangement

Comparative information has been disclosed for all numerical information in the financial statements and also the narrative
and descriptive information when it is relevant for understanding of the current financial statements.

To facilitate comparison, certain relevant balances pertaining to the previous year have been rearranged and reclassified
whenever considered necessary to conform to current year’s presentation.

34 Events after the reporting period

There are no other events identified after the date of the statement of financial position which require adjustment or
disclosure in the accompanying financial statements.