Modistone Ltd.

 
 The Company was incorporated in July 1930 under the
 provisions of the Indian Companies Act, 1913 under the name
 and style of Firestone Tyre and Rubber Company of India
 Private Limited, which was at that time wholly owned
 subsidiary of The Firestone Tyre and Rubber Company, USA
 (Firestone). Initally engaged in trading of tyres, the
 Company set up a plant at Bombay and commenced
 manufacturing of tyres, tubes and allied products in 1940.
 
 In March, 1979, the name of the Company was changed to
 Bombay Tyres International Private Limited. In June 1979,
 the status was changed to a public limited company and the
 name of the Company was again changed to Bombay Tyres
 International Limited and 26% of its Equity Capital was
 disinvested by Firestone to the public. In 1981, the
 Firestone Tyre and Rubber Co. Inc. of USA disinvested its
 74% shareholding in the Company and 35% of the shareholding
 in the Company was acquired by Modi Rubber Limited (MRL) in
 December, 1981.
 
 At the time of acquisition by MRL the Company's turnover was
 Rs. 57 crores (1980-81). Since then, the Company's turnover
 has been increasing steadily and the peak turnover touched
 Rs. 243 crores in the year 1991-92.
 
 The Company manufactures a wide range of tyres ranging from
 small sized scooter tyres to the large tyres for earth
 moving equipment. The export turnover of the Company has
 increased from Rs. 334 lacs in 1987-89 to Rs. 557 lacs in
 1989-90 to Rs.  578 lacs in 1990-91 to Rs. 702 lacs in
 1991-92 to Rs. 616 lacs in 1992-93 and Rs. 762 lacs in
 1993-94. The Company's export performance has been
 recognised by the Chemical and Allied Products Export
 Promotion Council [CAPEXIL) which has awarded the
 Certificate of Merit to the Company for the financial years
 1989-90, 1990-91 and 1991-92.  
 
 During 1983-84, the Company completed a scheme of
 modernisation, wherein modern F-370 Banbury Mixer, 3937 KVA
 Generator were installed to improve the capacity utilisation
 and to ensure uninterrupted power supply. In addition, the
 range of new generation products like Maruti, LCVs and Lug
 tyres for heavy duty vehicle were introduced.  
 
 During the last two years, the Company's performance was
 affected due to certain unforeseen and unavoidable factors.
 There was a lockout in the plant for a period of
 approximately 2 1/2 months during 1993-94. It was preceded
 by go slow for about 3 months. The validity of said lockout
 was contested by the workmen/union in various Courts at
 Bombay and finally Division bench of Bombay High Court
 passed an order on 20th February 1994 directing, inter
 alia, that the lockout was to be lifted in two phases, the
 workmen should maintain discipline and give normal
 production and referred the issue of charter of demands of
 Management and workmen, wages for the lockout period and
 discontinuation of badli working system to an Arbitrator.
 Accordingly a retired Judge of Bombay High Court was
 appointed as Arbitrator.
 
 A significant portion of the unusually high loss during the
 year is attributable to the above lock-out/go slow.
 Increase in inputs and interest costs, could not be passed
 on or absorbed on account of intense competition. Delay in
 implementation of the proposed modernisation programme was
 another major factor for the losses during the year. The
 net loss (after interest and depreciation) suffered by the
 Company for the year is Rs. 2011 lacs.  The name of the
 company has been changed to Modistone Ltd. with effect from
 October 3, 1994.