Baloo is preparing for Mowgli's next party time in a week or so. He's rather happy that Mowgli is reuniting with him after the weeks of both living alone.
Since Bagheera is already deceased, his bones are decomposing in the river stream. Sometimes, a few of the bones could be eaten by Tambaqui, the grownup golden jackal who keeps Shere Khan's skull in his cave (indicating that as a young jackal, he was reluctantly raised as Shere Khan's foster son). A greedy up and coming antagonist in the form of Badshah - the Indian striped hyena - kicks the former's own ass, as he is a few years older.
'Well you're as nasty as I am.', the hyena growls. 'You darn Prick!', Tambaqui responds. They are already rivals at that point, since they've been stranded in Sumatra after escaping two different things at different times.
Never mind the fights, Baloo is still preparing for Mowgli's rather late coming of age, which would come tomorrow.