History of Nahar Spinning Mills Ltd.

YEAR EVENTS 1980 - The Comp. was incorporated as a Private Limited Comp. on 16th December. The Comp. was converted into Public Limited Company on March 31st 1983. The Comp. established a spinning plant of 1972 spindles at Ludhiana. Subsequently, 1,600 spindles out of these were replaced with new spindles incorporated with latest technology. The Comp. also replaced other machinery of spinning plant such as yarn cleaners, humidification plant, etc.

- The main objective of Comp. is to manufacture Spinning, weaving & processing of cotton, jute, silk, hemp, wool, hair, rayon & other fibrous material. The Comp. is also engaged in trading of cloth including furnishing fabrics.

1985 - The main object of public issue of equity shares during August were to provide part of finance for purchase of additional machinery & to augment long term resources for future expansion & diversification.

- 1,00,552 shares taken up by promoters, directors, etc., and associate companies; 8,94,448 shares then issued at par out which the following shares were reserved & allotted:

- [is] 1,08,000 shares in conversion of debts;

- [iis] 1,86,448 shares to promoters, directors, etc. and

- [iiis] 42,000 shares to business associates & employees of the company.

- The balance 5,58,000 shares offered to the public in August.

1988 - The Comp. had taken up an expansion-cum-modernisation programme at a total capital outlay in both its spinning & hosiery sections. In the spinning section, 3,200 worsted spindles were to be added to the existing capacity of 1,600 spindles.

1989 - In August, 9,95,000 Rights shares issued [prem. Rs. 90 per share; prop. 1:1s]. Additional 1,49,250 shares allotted to retain oversubscription. Simultaneously, another 49,750 shares [prem. Rs. 90 per shares] offered to employees. Additional 7,462 shares were allotted to employees to retain oversubscription.

1991 - The Comp. undertook to set up a cotton spinning plant of 50,400 spindles at Village Simrai in Raisen District of Madhya Pradesh.

1992 - The Comp. proposed to increase the installed capacity of the spinning unit from 50,400 spindles in two phases. In the first phase, 25,000 spindles were to be added at Village Simrai, Mandideep, while the remaining were to be added in the second phase.

- The Comp. along with other group companies promoted Nahar Overseas Ltd., an overseas Comp. with registered office in the U.K. for promoting exports in U.K., European & other neighbouring countries. The Comp. was to participate to the extent of 25%, i.e., US $125,000, in the capital of overseas company.

- During May the Comp. offered 21,96,462 No. of equity shares at a premium as rights in proportion 1:1. Additional 3,26,514 shares were allotted to retain oversubscription. 737 No. of equity shares were kept in abeyance.

- Another 1,09,823 No. of equity shares were offered at a premium to employees, etc., on an equitable basis. Additional 16,473 shares were allotted to retain oversubscription.

- 26,49,272 Rights equity shares allotted at a prem. of Rs. 90 per share.

1992 - The Comp. made a Right Issue of 23,06,285 equity shares of Rs. 10/- each at a premium of Rs. 190/- per share to the existing shareholders on Right basis including preferential allotment to the employees of company.

1993 - The Comp. has been awarded International Award of excellent performance in Export, from Government of India, for year.

1994 - The Comp. added 9984 spindles thereby increasing the spindlage capacity to 25,824 spindles.

- As a measure of backward integration, the Comp. undertook to set up a cylic fibre plant with a capacity of 18,000 TPA at village Lalro, near Chandigarh.

- 7,00,000 No. of equity shares allotted on exercise of warrants. 29,97,255 rights shares allotted to shareholders and employees.

- The Comp. has decided to set up an Acrylic Fibre Plant with a capacity of 18,000 tones per annum.

- The Comp. has joined hands with Punjab State Industrial Development Corporation [PSIDCs] for promoting a new Comp. in the name of NAHAR INDUSTRIAL CORPORATION LTD, for development of Industrial Estate/Industrial Park. The Memorandum of understanding has also been signed.

1995 - 6,688 No. of equity shares kept in abeyance were issued.

1996 - On 23rd March, the Comp. had allotted 34,22,452 - zero interest secured premium Convertible Bonds of Rs. 250 each with detachable warrants as follows:

- 24,15,220 bonds to the existing shareholders of Comp. [all were taken ups]. Remaining 10,02,027 bonds were allotted to the underwriters & the balance 5,205 bonds were kept in abeyance. Accordingly 16,40,135 No. of equity shares were allotted on conversion of bonds. The Comp. also allotted 34,17,247 No. of equity shares on the exercise of right attached with the warrants.

- As on 31st March, the Comp. had installed 51,024 spindles. The Comp. installed 13,104 spindles at Mandideep, M. P. Thereby increased the installed capacity of spinning unit at 64,128 spindles.

- The Comp. made a Right Issue of 34,22,452 Zero Interest Secured Premium Convertible Bonds of Rs.250/- each with detachable Warrant aggregating to Rs. 8226.130 Lakhs to the existing shareholders of company.

1997 - The Comp. has allotted 16,40,135 Fully paid equity shares on the conversion of Bonds into equity shares. Likewise the company has also allotted 34,17,247 equity shares on the exercise of right attached with the Warrants.

- NSML had proposed to set up an 18,000 tpa plant near Chandigarh for production of commercial standard acrylic fibre.

1998 - Spinning Unit II of Comp. has also been awarded certification under ISO 9002 quality system.

2000 - Commercial production on the part of machinery of 100%, EOU, spinning unit which is being installed at Village Jalalpur.

- Crisil has reaffirmed the AA+ rating, assigned to the Rs 26.38 crore secured premium convertible bonds & the P1+ rating assigned to the Rs 20 crore CP Programme of Nahar Spinning Mills.

2002

-Appoints Prof. K S Maini & Ms Monica Oswal as the Additional Directors of company.

-Unveils Comp. holding details of more than 5% stake of company.

2003

-Board approves for acquisition of shares of Nahar Exports & Nahar International Ltd.

2008

- Nahar Spinning Mills Ltd has appointed Dr. S K Singla as Additional Director of Comp. w.e.f. June 30, 2008.