However, when contacted by The Financial Express, managing director VK Kakkar of Stone India said that "talks are still on", while the company's annual report for the year ending to March 31, 2000, has no hint on the joint venture. The latest signature in the report, that of chairman Goenka, is dated July 3, 2000. In early May this year, the company had notified the Calcutta Stock Exchange about the proposed joint-venture. Stone makes alternators, airbrakes, brake regulators and other parts for the railways, apart from colour monitors. The company reported a Rs 99.71 lakh net loss on a declining turnover of Rs 32.86 crore for the year ending to March 31, zz2000.

To reduce its dependence on single-customer markets like the railways, the company plans to manufacture and market surface textures used as base prior to painting buildings. It has bought out the Heritage Surface Textures Division from group company Bakelite Hylam Ltd for an undisclosed sum. Analysts feel that the buyout has been to bail out Bakelite Hylam. The division's brands are Heritage and Roller, and the directors feel that it will give the company an entry into the core area of infrastructure and housing.

As part of a restructuring move, on June 1 last year, the company sold its rubber components manufacturing business to its subsidiary Mumbai-based Skylark Rubber Products Ltd for Rs 36 lakh under three different agreements for transferring land & building, current assets & liabilities and leasing plant & machinery.

Foreign exchange earnings declined to Rs 6 lakh in fiscal 1999-2000 as compared to Rs 25 lakh in the previous year. However, foreign exchange outflow was lower at Rs 44 lakh in 1999-2000 against Rs 74 lakh in the previous year.