SWASTIK RUBBER PRODUCTS LIMITED
Annual Report 1999 - 2000
Your Directors have pleasure in presenting herewith their 50th Annual
Report together with the Audited Accounts of the Company for a period of
fifteen months for the year ended on 31st March, 2000.
Your Directors have to inform you that your Company has incurred a net loss
of Rs. 724.58 and that the gross turn over has decreased by 20% as compared
with that of last financial year. From the order point of view your Company
has received large orders from the Defence Organisations of the Government
of India. The modernisation programme as envisaged in the BIFR Scheme could
not be taken up due to continuing impasse with a certain lending bank. The
matter is subjudice in the Supreme Court of India.
OUTLOOK FOR THE FUTURE
Your Directors see a brighter future for your Company. Barring unforeseen
contingencies the performance of the Company in the Current Year is
expected to be satisfactory provided the working capital is made available
to the Company from the Banking system as early as possible.
Mr. S. A. Dordi and Mr. F. J. Engineer, Directors retire by rotation at the
ensuing 50th Annual General Meeting and being eligible offer themselves for
During the year under review Mr. N. N. Ramachandran resigned as Deputy
Managing Director to take up a new assignment in another group Company. Mr.
D. L. Narasimham and Mr. K. Narayanswamy, Directors, resigned from the
Directorship due to their pre-occupations.
Your Directors place on record their deep appreciation for the valuable
services rendered by Mr. N. N. Ramachandran, Mr. D. L. Narasimham and Mr.
K. Narayanswamy during their tenure as Directors.
Your Company has achieved a smooth transition into the new millennium
without any problems. All systems/equipments are functioning normally.
Adequate insurance cover has been taken on the Company's fixed assets and
Your Directors wish to inform you that taking into consideration the
viability of the Company and present encouraging progress in the Scheme of
Revival, the Company has applied to the Govt. Of Maharashtra for the
extension of BRU Protection and we are glad to inform you that our proposal
is under consideration by the Govt. of Maharashtra.
BIFR SCHEME OF REHABILITATION
Your Company is under the purview of BIFR. Implementation of Phase-II of
the Rehabilitation Scheme-96, was under process as directed by the BIFR,
but the same has been hindered by a certain lending Bank. Whilst the
dispute with the said Bank is subjudice, your directors are hopeful of
resolving the matter by early September 2000.
Your Company has already commenced the repayment of the Principal amount to
those fixed deposit-holders who have surrendered the requisite legal
documents to the Company. You will be pleased to know that your Company has
so far paid 88% of the total fixed deposits.
Your Company has also commenced the repayment of the Principal amount to
those Debenture-holders who have surrendered the requisite legal documents
to the Company.
You will also be pleased to know that your Company has so far paid 52% of
the total redemption amount.
As required by the provisions of Section 217(2A) of the Companies Act, 1956
read with the Companies Act, 1956, read with Companies (Particulars of
Employees) Rules, 1975 as amended, no employee is covered under the said
Your Board of Directors would like to express their grateful appreciation
for the assistance and co-operation received from the Banks, especially
Bank of Maharashtra, Government authorities, Shareholders, Suppliers,
Customers and distributors of the Company during the period under review.
Your Directors wish to place on record their sincere sense of appreciation
for the devoted services of the Executives, Staff and Workers of the
Company and expect that the cordial relationship would continue for years
SECTION 217(1)(e) OF THE COMPANIES ACT,1956
In accordance with the Provisions of Section 217 (1)(e) of the Companies
Act, 1956, the required information relating to "Conservation of Energy,
Technology Absorption and Foreign Exchange earnings and outgo" is annexed.
With regard to the observations in the Auditors' Report, the notes to the
Balance Sheet and Profit and Loss Account are self- explanatory.
M/s G. D. Apte & Co., the Auditors of the Company, retire at the ensuing
50th Annual General Meeting and are eligible for re-appointment.
For and on behalf of the Board of Directors
Place - Pune ASHOK MUTHANA
Date - 29th June, 2000. CHAIRMAN
ANNEXURE TO DIRECTOR'S REPORT
Information required under Section 217 (1) (e) of the Companies Act, 1956
read with Companies (Disclosure of Particulars in the report of Directors)
Rules, 1988 and forming part of Director's Report.
A) CONSERVATION OF ENERGY
Measures taken during the year-
1. Power factor improvement by replacing old Oil Circuit Brakers and
2. Reduction in mixing and curing time in Banbury mixer for automotive hose
3. Descaling of Boiler and all the vulcanisers as well as Spreading machine
4. Continuation of measures taken in earlier year.
B) RESEARCH AND DEVELOPMENT AND TECHNOLOGY ABSORPTION
1) SPECIFIC AREAS IN WHICH R & D CARRIED OUT BY THE COMPANY.
a) Achievement of ISO 9001 for Spreading, Calendar, Footwear, Defence
Marine Products and Oil Hose Departments.
b) Process Technology
1) Continuation of value engineering on high cost compounds.
2) Continuation of value analysis in the manufacturing process of
3) Upgradation of manufacturing processes in products for Defence.
4) Switching over rubberisation of fabrics from Spreading to Calendar for
Defence Marine Products.
c) Development of Critical Products
1) Inflatable decoys for Military applications.
2) Single seater inflatable dinghy for use in fighter Aircraft.
3) Inflatables for High Speed Naval Operations.
4) Chemical suit for processing industry applications.
5) High altitude radar bearing balloon.
6) Weight reduction in existing Defence Footwear.
7) Vibration Dampening Sheets for new generation vehicles.
8) Silicon based magnetised sheet - for exports.
9) Various compound developments for new generation vehicle products.
2) BENEFITS DERIVED
a) Cost Reduction.
b) Improvement in Quality and enhancement of product range.
c) Increased customer satisfaction.
d) Growth in Export Market.
3) FUTURE PLAN
Plans for modernisation have been made. However implementation of the same
is dependent on introduction of long term funding.
II) TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION
1) EFFORTS MADE TOWARDS TECHNOLOGY ADAPTATION AND INNOVATION
-- Attending and participating in technical seminars and exhibitions.
2) BENEFITS DERIVED AS A RESULT OF THE ABOVE EFFORT
-- Better quality through improved systems and process control.
3) TECHNOLOGY IMPORTED DURING THE LAST FIVE YEARS - NIL
For and behalf of the Board of Directors
PUNE ASHOK MUTHANA
Date : 29th June, 2000 Chairman