TITLE: FUTURE PROJECTIONS OF FINANCIAL STATEMENTS OF YEAR 2014 FOR BATA INDIA AND PARAGON FOOTWEAR.
BATA: Bata is the one of the trusted footwear brands in India. Bata footwear is well known for its durability and affordable price. The founder of Bata is Tomas Bata in 1894 in Austria-Hungary Bata includes various brands like Bata Comfit, Ambassador, North Star, Weinbrenner, Marie Claire, SunDrops, Safari, Power, Toughees and Bata industrials. Bata established its shoe factory in India near Kolkata, the city was well known by the name “Batanagar”. Bata became well-known brand for the Indians over the years.
PARAGON: Paragon Footwear is well known footwear brand in India. It was established in 1975 at kottayam (Kerala). Paragon is the largest selling brand in rubber footwear in India. Paragon’s famous tagline “pairo ke liye” became very famous. Slippers are the main product of paragon Footwear. Paragon is No.1 in organized rubber footwear sector. In assignment 1 we had learned the financial ratios of the two companies. Now we are dealing with the balance sheet and profit and loss account of the two footwear companies. The calculation of future projections of financial statements of year 2014 by using “Compound Annual Growth Rate”. Using the nth root of total percentage of growth rate, the ‘CAGR’ is calculated.
Formula for CAGR:
CAGR= (ENDING VALUE/BEGINNING VALUE) ^ (1/DIFF. IN YR)-1
By this formula we