SRI NACHAMMAI COTTON MILL Share price

Sri Nachammai Cotton Mills Limited (SNCM) was incorporatedin March 1980 as a wholly owned subsidiary of The JawaharMills Ltd. The assets of the Chettinad unit of The JawaharMills Ltd with an installed capacity of 16120 spindleswere transferred to SNCM in May 1980. A transfer deed forthe above transfer was executed and registered in March1982. The Company offered 46000 equity shares of Rs.10/each to the Public after it was converted in to a PublicLimited Company in June 1982. It ceased to be a subsidiaryof The Jawahar Mills Limited with the allotment of the said46000 shares on 9.8.1982.In September 1984 the Company issued 50000 equity sharesof Rs.10/-each for cash at par to the existing shareholdersas right shares. since then the Company has made fiveBonus issues ------------------------------------------------------------ 100000 equity shares in the ratio of 1 :1 in Mar 1987. 200000 equity shares in the ratio of 1 :1 in Mar 1989. 400.000 equity shares in the ratio of 1 :1 in Mar 1991.2100000 equity shares in the ratio of 21 :8 in Apr 1993. 290000 equity shares in the ratio of 1 :10 in Dec 1994.-----------------------------------------------------------Over the years the Company has been expanding andmodernising its plant. All expansions and modernisationschemes completed so far have been funded from internalaccruals (Rs.63O lakhs) and Long term Borrowings (Rs.1391Iakhs) from IDBI SlPCOT and Indian Overseas Bank. It hasexpanded its spindleage from 16120 spindles in 1980 tothe present level 34784 spindles. Modernisation andupgradation has enabled the Company to improve the qualityof its products and enter the export market. A beginningwas made in 1993-94 by merchant export of yarn for a valueRs.35.69 lakhs.The Company manufactures Combed and Carded cotton hosiery yarnof counts ranging from 20s to 40s which are used by manufacturersto convert the same into fabric or garments for export.