Modern Terry Towels Ltd.

YEAR                       EVENTS
 1984 - 15,00,000 No. of equity shares were issued out of the total
        shares, as bonus shares in prop. 1:1 on 30.08.1980.
 
 1985 - 50,000 No. of equity shares of Rs 10 each issued at par on
 Rights
        basis in prop. 1:7 on 22.2.1986.
 
 1986 - The company was incorporated as a Private Limited Company on
        13th August and was converted into a public limited company
 on
        3rd March.  The company manufactures and processes all kinds
 and
        woollen fabrics, woollen, yarns, synthetics yarn and fabrics.
 
      - In view of the expansion the company entered into a Memorandum
 of
        Understanding with Platt Saco Lowell (U.K.) Ltd., U.K. for
        acquisition and technical knowhow for installation of Repco
        Spinning System.
 
      - The Company was established with the object to acquire and
 take
        over the business carried on by a partnership firm under the
 name
        of Modern Woollen Mills, with an installed capacity of 300
        spindles.
 
      - The Company introduced newer varieties of woollen yarn to
 keep
        pace with demands of the market.
 
      - 80,000 No. of Equity shares of Rs 10 each were reserved for
        allotment on a preferential basis to employees, workers and
        Indian working directors.
 
 1987 - During January-February, the Company offered 16,00,000 No. of
        equity shares of Rs 10 each linked to 1,60,000-15%
        non-convertible secured redeemable debentures of Rs 100 each
 for
        cash at par of which the following were reserved for allotment
 on
        a preferential basis: (i) 32,000 No. of equity shares linked
 to
        3,200 debentures to Business Associates of the Company (only
 700
        shares linked to 70 debentures taken up); (ii) 2,00,000
 shares
        linked to 20,000 debentures to shareholders of the Company
 (none
        were taken up) and (iii) 6,40,000 shares linked to 64,000
        debentures to non-resident Indians on repatriation basis
 (only
        16,000 shares linked to 1,600 debentures taken up).
 
      - The remaining 7,28,000 shares linked to 72,800 debentures
 along
        with the unsubscribed portion of 8,55,300 shares linked to
 85,530
        debentures were offered to the public during January-February
        (only 1,25,700 shares linked to 12,570 debentures were taken
 up).
 
      - The remaining 14,57,600 shares linked to 1,45,760 debentures
        devolved on the underwriters.  These debentures were to be
        redeemed in four equal annual instalments of Rs 25 each to be
        paid at the end of 7th, 8th, 9th and 10th year from the date
 of
        allotment of the debentures at a premium of Rs 5 per
 debenture.
 
 1989 - 40,00,000 shares were issued as per terms of conversion on
        3.7.1990.
 
 1992 - During February, the Company issued 60,00,000 - 15% secured
 fully
        convertible debentures of Rs 120/- each of which 21,60,000
        debentures were issued on Rights basis (all were taken up).
 
      - Additional 3,24,000 debentures allotted to retain
        oversubscription.  Of the remaining the following were
 reserved
        for allotment on preferential basis (1,95,850 debentures
 taken
        up). (ii) 9,60,000 debentures to shareholder of Modern
 Suitings,
        5,76,000 to Modern Threads etc. (5,28,000 debentures taken
 up),
        (iii) 3,00,000 debentures to employees (only 2,050 debentures
        taken up.
 
      - Balance 20,04,000 debentures along with 11,10,100 debentures
 not
        taken up by under preferential quota were issued to the
 public.
 
      - Additional 5,76,000 debentures were allotted to retain
        oversubscription.  Rs 60 of the face value of each debentures
 was
        to be converted into two equity shares of Rs 10 each at a
 premium
        of Rs 20 per share after 6 months from the date of allotment
 of
        debenture.  Accordingly 138,00,000 shares were allotted. 
 
      - 20,86,500 shares allotted to Asian Finance Investment
 Corporation
        Singapore Ltd.
 
      - Balance of Rs 60 of the face value of each debenture is to be
        converted into 2 equity shares of Rs 10 each at a premium of
 Rs
        20 per share after 18 months from the date of allotment of
        debentures.
 
 1993 - The Company implemented 100% Export Oriented Unit for
 manufacture
        of towels at Ahmedabad in collaboration with M/s. Ashton
        Brothers, a division of Courtaulds Textiles (Holdings) Ltd.,
 U.K.
 
 1994 - The High Court passed an order passing the scheme of
        reconstruction and arrangement resulting in vesting of Woolen
        Division in Modern Threads (India) Ltd. with effect from 1st
        April 1995.
 
      - As per the scheme, all the members of the Company have been
        allotted free of cost fully paid-up equity shares in the ratio
 of
        11.19 No. of equity shares for every 100 shares held.  Also
        allotted 147.77 lakh equity shares of Modern Threads (India)
 Ltd.
        in consideration for Woollens Division and Suneel Textile
 Mills
        Ltd. the subsidiary of the Company.
 
      - The Company issued preference shares; (i) 25,000-14% Pref.
 shares
        to be redeemed between 7-10 years from the date of allotment
 i.e.
        19.10.1988, (ii) 75,000-14% Preference shares redeemable
 between
        7-10 years from date of allotment i.e. 26.9.1991, (iii)
        2,00,000-17.5% Preference shares to be redeemed after 8 years
        from the date of allotment i.e. 3.8.1992, (iv) 5,00,000-17.5%
        Preference shares redeemable after 7 years from the date of
        allotment in 3 equal instalments at the end of 7th, 8th and
 9th
        year from the date of allotment i.e. 8.11.93.
 
      - As per the scheme of arrangement approved by the High Court
 of
        Rajasthan, Modern Threads Ltd, was amalgamated with Modern
        Woollens Ltd.  As per the scheme the shareholders of MWL
 would
        get 11.19 No. of equity shares of Rs 10 each at a premium of
 Rs
        25 per share for every 100 No. of equity shares held in MTL.
     
 1995 - The Company undertook to expand its capacity from 5000 TPA to
        6850 TPA at a cost of Rs 97.50 crores.
 
      - The Company issued 3,00,000-16% Cumulative Redeemable
 Preference
        shares of Rs 100 each on private placement basis with
 Financial
        Institutions.  These are redeemable in 3 equal instalments at
 the
        end of 7 years but before the end of 10th year from the date
 of
        allotment i.e. 1.6.1995.
 
      - `Suneel Textile Mills Ltd.' and `Modern Wollen Carpets Ltd.'
 are
        the subsidiaries of the Company.  During the year Modern
 Woollen
        Carpets Ltd. ceased to be a subsidiary of the Company.
 
 1996 - Registrars of Companies vide letter dated 23rd January,
 approved
        the change of name of Company from Modern Woollens Ltd. to
 Modern
        Terry Towels Ltd.
 
 1997 - The Company entered into a tie-up with M/s. Hysnai of Japan
 for
        export of premium quality towels.  Also, internationally good
        brands envinced keen interest in joining hands with the
 company
        for production of a wide range of bath robes and sports wear
 in
        India.
 
      - The Company proposed to manufacture worsted yarn and the whole
 of
        the product was to be taken up by its associated company M/s.
        Modern Suitings, Ltd.  Under this scheme, 2,400 worsted
 spindles
        were to be installed with the assistance of Platt Saco Howell
        Ltd., U.K.