ACCOUNTING - II

Chief Financial Officer The chief financial officer (CFO) is the overall head of the finance department. The CFO reports to the chief executive officer. The CFO coordinates the overall activities of the finance department and works closely with the heads of the sub-departments to achieve the overall performance targets. The CFO also collaborates with the human resources manager to ensure that the finance department is adequately staffed with qualified personnel. The CFO is also responsible for approving the financial reports and all the financial transactions of the entire business before they are forwarded to the top management for action.

FINANCE DEPARTMENT HIERARCHY

Management Accountant The management accountant is the head of the management accounting sub-department and is the second senior-most individual in the finance department. The management accountant provides timely, accurate and useful information that enables the top management to make informed decisions concerning current and future business activities. The management accountant is also charged with the responsibilities of controlling costs, monitoring cash flows, preparing budgets, conducting staff appraisal of the sub-department and preparing monthly, quarterly and annual management reports.

FINANCE DEPARTMENT HIERARCHY

Financial Accountant The financial accountant reports to the CFO and is responsible for providing accurate, timely and useful financial information to support informed decision-making by external users of the financial reports. The financial accountant is charged with the responsibility of preparing, interpreting and analyzing financial reports for monthly, quarterly and annual accounting periods. The financial accountant also responds to queries of external auditors on the final annual financial reports prior to their publication.

FINANCE DEPARTMENT HIERARCHY

Internal Auditor The internal auditor reports to the management accountant and is responsible for conducting regular analyses of all financial transactions to ensure that there is accountability and adequate controls to safeguard the assets, revenues and expenditures of the business. The internal auditor scrutinizes the files and documents for all the transactions of the business to ensure they are authentic and have been recorded correctly to their respective ledger accounts and the general ledger

FINANCE DEPARTMENT HIERARCHY

Credit Controller The credit controller reports to the management accountant and is responsible for managing the accounts receivable of the business. Accounts receivable comprise the cash payments and outstanding debts. The credit controller ensures that invoices are sent out in time and prepares the aging debtors listing to track the outstanding amount of money owed to the business by debtors. The credit controller also ensures that cash payments posted and remittances for debtors' payments are credited and debited in the appropriate accounts to update the debtors listing.

FINANCE DEPARTMENT HIERARCHY

Accounts Payable Accountant The accounts payable accountant reports to the management accountant and takes charge of the accounts payable sub-department. This subdepartment is charged with the responsibility of processing and making payments for cash purchases and creditors' payments once they become due. Its other functions include reimbursing employees for expenses incurred on the organizations behalf, processing of creditors invoices and reconciling payable accounts to ensure that the creditors listing is fully updated. The accounts payable accountant is also responsible for preparing the monthly aging creditors listing report.

FINANCE DEPARTMENT HIERARCHY

Accounts Clerks Accounts clerks are the junior-most members of the accounting department and they report to the heads of their respective subdepartments. Accounts clerks are charged with the responsibilities of filing documents, conducting daily reconciliations, processing and dispatching outgoing invoices, receiving incoming invoices and processing payments for the invoices. Payroll clerk, accounts payable clerk, accounts receivable clerk and cashier are some of the common accounts clerk positions in the financial department.

FINANCE DEPARTMENT HIERARCHY

Introduction
Established in 1932, as Bata Shoe Company Ltd. It went public in 1973 ---Bata India Ltd. One of the largest footwear retailer in India Batanagar

Company activities & policy

Retail is the core business 146 new stores are planned 1,50,000 customers are served through 1250 stores Each store is more than 3000 sq ft Wholesale and Distributers Exports increased

to 169.3 million from 117 million in 2011

Company activities & policy

Capital Expenditure ( CAPEX)

Rs. 1245 million spend in 2011, as against 580 million in 2010

Significant part was for opening new stores and renewing the old ones It was also used in installation of machineries in factories

Company activities & policy

EPS has increased to Rs. 22.11 in 2011, as against Rs. 14.84 in 2010

Since April, 2010 it finances itself from the internal sources only..no Bank Borrowings
Paid around Rs. 140 million to Global Footwear Services Ltd., Singapore
Received Rs. 1000 million Future transfer of shares JV company, River Bank Developers Pvt. Ltd. (RDPL) Bata Rehabilitation Housing Complex, Batanagar

Company activities & policy

Contingent Liabilities stand at Rs. 648 million Taxes due ( Sales tax, Excise, Customs etc) is Rs. 4,94,531 stretching from 19872007 Share Prices Year 2008 2009 2010 2011

High 296.00 208.90 391.90 740.70

Low 78.00 76.50 171.00 295.00

Bata India Ratios

Particulars
LIQUIDITY Current ratio Acid test ratio OPERATING Debtor's turnover Inventory turnover Assets Turnover LEVERAGE Indebtness ratio COVERAGE Interest coverage Debt service coverage PROFITABILITY Return on assets NP margin OP margin

2011
1.6 0.78

2010
1.63 0.64

2009
1.38 0.53

2008
1.28 0.46

45.43 4.28

42.93 4.03

40.62 3.47

39.03 2.95

3.01

2.93

2.83

2.67

0.04

0.08

0.18

0.24

199.4 10.13

31.08 7.4

13.81 6.29

9.06 5.71

56.57
7.5 14.45

46.15
6.09 13.43

38.25
6.09 10.35

32.72
5.43 8.32

Name

Last Price

Market Cap. (Rs. cr.)

Sales Turnover

Net Profit

Total Assets

Bata India

858.95

5,519.94

1,266.43

95.35

412.01

Relaxo Footwear Mirza Intl

313.80 18.80

376.60 174.29

557.76 474.38

37.69 39.18

317.13 309.61

Liberty Shoes
Bhartiya Inter Crew B.O.S.

97.15
52.15 25.80

165.54
54.57 36.10

298.14
167.33 621.01

10.64
5.54 22.43

241.63
180.13 447.96

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