RSL INDUSTRIES LIMITED
Annual Report 2000
DIRECTOR'S REPORT TO THE MEMBERS
The Directors of RSL INDUSTRIES LIMITED have pleasure in presenting their
17th Annual Report together with Audited Accounts of the Company for the
period ended 31st March 2000.
In March 2000, the Board of Directors approved an interim dividend of 20%
on equity shares (Rs. 2.00 per equity shares). The Board of Directors
recommend for the approval of the same to be treated as the final dividend
for the period ended 31st March 2000.
Performance During the Year:
The Company has maintained a steady growth during the year under
consideration in all product divisions of the company. During the year, the
company has gone further into forward integration by increasing the volume
of production of Full Shoes by converting further Shoe Upper capacity in
the Full Shoes.
The company is planning to convert the entire existing capacity for making
Shoe Uppers (5,000 Pairs per day) into Full Shoes, creating additional Shoe
lines in the Foot Wear Division at Vellore. Since the company has adequate
built-up area, this only involves in setting up additional lines with the
installation of Full Shoe machineries.
It is a matter of great satisfaction that the Company has once again been
awarded for the best export performance during the year by the Council for
Leather Exports, a recognised agency of the Government of India.
Considering the need for consolidation and rationalisation of its
resources, the company decided to capitalise its reserves by issue of bonus
shares to the existing shareholders in the ratio of one equity share for
every one fully paid equity share held by the share holders of the company
as on 16th February 2000, being the record data fixed for the issue of
The shares of the company has been listed with Calcutta and Chennai Stock
Exchanges. During the year the company's shares were listed in the Stock
Exchange, Mumbai, the country's premier stock exchange, making the shares
of the company tradable easily. Application has also been made to list the
shares of the company with the National Stock Exchange.
Mr. Ramaswamy Sethuraman, Mr. S. Palaniappan and Mr. S. Muthukkaruppan
retire by rotation at the forthcoming Annual General Meeting and being
eligible, offer themselves for re-appointment.
The Board of Directors deeply regrets the sad demise of Mr. RM Sethuraman
on 10th June 2000. Mr. RM. Sethuraman had been the Chairman of the Company.
He was the tower of strength of the company and was guiding the company
with his profound knowledge in the leather industry. As a senior member of
the board, his knowledge and counsel were of immense value to the company.
The Board wishes to place on record its deep appreciation of his valuable
services of the company during his long association.
The Auditors of the Company M/s. K. S. Jagannathan & Co., Chartered
Accountants, Chennai retire at the ensuing Annual General Meeting and are
eligible for re-appointment.
Your Directors wish to place of record their sincere appreciation for the
continued support of their bankers and financial institutions.
The year 2000 transition has been smooth for your company. All software
solutions for Production & Management and customer support systems have
been made Y2K Compliant.
The information required under section 217 (2A) of the companies Act, 1956,
has not been furnished as there are no such cases.
Your Directors wish to place on record their appreciation for the whole
hearted efforts and contribution of the employees at all levels. Need based
training and development programmes, improved age and skill mix have been
adopted at all levels to meet the challenging market environment.
Conservation of Energy, Technology Absorption and Foreign Exchange Earning
Conservation of Energy:
Your company recognises that it is essential to conserve energy and gives
due importance to reduction of power consumption in its manufacturing
processes. To this end the following measures have been undertaken:
1. Use of electronic ballasts in place of conventional copper / polyester
2. Replacement of conventional tube lights with power saving 36 W Tube
Lights and compact Fluorescent Lamps.
3. Use of Sodium vapour lamps in place of Mercury vapour lamps.
4. Improvement of power factor by installing suitable relays and capacitor
5. Installation of High temperature tunnels and chilling units in Full Shoe
conveyor lines to improve seasoning and production cycle time.
6. Use of variable speed automatic conveyers in Full Shoe lines to improve
production cycle time.
The company has been consistently up-grading its production techniques by
improved methods and systems. Towards this end senior technical personnel
of the company are deputed to visit overseas companies, exhibitions and
seminars to understand the current world trend so that the same can be
adopted with suitable adaptation to our working systems. The company has
been successful in developing vendors for indigenous production of various
types of hard wares and sub-materials as substitutes for the import of
these items in respect of all product divisions.
Foreign Exchange Earning and Outgo:
The company has been continuously pursuing the policy of conserving the
Foreign Exchange outgo. Development of indigenous substitutes for Import
items has resulted in a considerable saving in cost.
The Total Foreign Exchange earnings of the company for the period ended
31st March 2000 is Rs. 10310.48 lacs and foreign exchange utilisation
during this period is Rs. 1315.31 lacs compared to the figures of Rs.
6140.39 lacs and Rs. 1215.58 lacs respectively for the year ended 30th
On behalf of the Board
Place: Chennai Ramaswamy Sethuraman
Date: 04.09.2000 Managing Director