Bata Md Weston Gets 2-Year Extension

The board of directors of Bata India Ltd has extended the tenure of W K Weston as managing director for a further period of two years with effect from March 26, 2000. Weston is currently wearing two hats in the organisation, one as the managing director and the other as the regional executive, South Asia, which includes India, Pakistan, Bangladesh and Sri Lanka.

Weston's re-appointment as managing director of Bata India was necessitated as the company has yet to find a suitable person who could replace him.

The management of the company will seek shareholders' approval for the extension of the tenure and terms and conditions relating to remuneration by way of salary, commission and perquisites provided that the total remuneration including all perquisites shall fall within the overall ceiling of 5 per cent to 10 per cent of the net profits, in the forthcoming annual general meeting of the company to be held on June 7, 2000.

 

In the event in any financial year during the tenure of Weston, the company has no profits or its profits are inadequate, it may pay a remuneration to Weston, the total of which shall not exceed the ceiling limit.

In the event of any relaxation by the central government in the guidelines or ceilings on managerial remuneration, the board of directors is authorised to increase the remuneration and/or perquisites of Weston, if the board thinks fit.

The board of directors have noted that under the leadership of Weston, the restructuring of the various business activities of the company had resulted in a total turnaround of the company.

During the year 1999, the company's wholesale division added two depots to ensure faster service to customers and more effective distribution of its products in smaller urban areas.

With the improvement of financial performance of the company and reduction in debts, the dent-equity ratio improved further to 0.07:1 from 0.08:1 in 1998.

The company kept its borrowings at a minimum and commercial papers of Rs 15 crore were repaid during the year.