COMPANY PROFILE
Sri Nachammai Cotton Mills Limited (SNCM) was incorporated
in March 1980 as a wholly owned subsidiary of " Jawahar
Mills Limited". The assets of the Chettinad unit of the Jawahar Mills Limited,
was transferred to SNCM in May 1980. A transfer deed for the above transfer was
executed and registered in March 1982. It ceased to be a subsidiary of The
Jawahar Mills Limited with the allotment of the said 46,000 shares on 9.8.1982.
In September 1984, the Company issued 50,000 equity shares of Rs.10/- each for
cash at par to the existing shareholders as right shares. Since then, the
Company has made five bonus issues.
The Company has been expanding and modernizing its plant over
the years. All expansions and modernisation schemes completed
so far has been funded from internal accruals and Long-term borrowings.
It has expanded its spindlage from 16,120 spindles in 1980 to the present level
of 53,664 spindles and 504 Rotors.
The Company's spinning mills are situated at Chettinad,
Sivaganga District. The Company has two units there. The Company has taken
another unit called 'C' Unit from M/s. Supreme Yarn Spinners Limited, on lease
in 5.5.1995, situated at Veeranam village, Salem. The Company manufactures
combed, carded and compact cotton hosiery and hank yarn of counts ranging from
10s to 80s which are used by manufacturers to convert the same into fabric or
garments for dyeing and export.
The Company has issued 11,10,000 Equity
shares of Rs.10/- each at a premium of Rs.60/- per share to the public in 1995.
The Company has issued
15,00,000 - 10% Cumulative Redeemable Preference
Shares of Rs. 100/- each on 26.04.2012
Inspite of the best efforts of
the Company and in view of the carried
over losses, the inability to
infuse massive fresh funds and the non –feasibility of making fresh issue of
shares has inevitably led the Board of Directors to approach the
Preference Shareholders to extend the
period of redemption of shares and vary the terms and conditions of the Shares.
15,00,000 - 10% Cumulative Redeemable
Preference Shares of Rs. 100/- each shall now and hereafter be 15,00,000 -
0% Redeemable Preference shares of Rs.100/- each with
effect from 25.04.2015.
The Company has attained a sound financial footing with its good
performance over the
years and is surging ahead towards better prospects every year.