Sambandam Spinning Mills Ltd

Sambandam Spinning Mills Ltd

Incorporated in 1973 S P Ratnam is the chairman and S P Sambandam is the managaging director of the company. SSL manufactures yarn at its three spinning mills in Tamilnadu of which two are in Salem district and one in Coimbatore district. SSL allotted bonus shares in the ratio of 1:2 in May '94. Subsequently in Aug.'94 it offered rights at a premium of Rs 40 per share. Presently the total installed spinning capacity of the mill is 47356. SSL went public in Jan.'95 at a premium of Rs 40 to part-finance its expansion programme to have an installed capacity of 50460 spindles. This is likely to be completed in Mar.'97. The company started a windmill project from Sep.'95 to generate 225 kW power at Poolavadi in Coimbatore district. In 1995-96 SSL earned foreign exchange worth Rs 33 lac. During 1996-97 due to uptrend in the price of Yarn and Cotton the company is not in a position to hazard any favourable change in the profitability of the company. In 1996-97 SSL earned foreign exchange worth Rs. 98 Lacs. In May 1998 the company was awarded the ISO 9002 Qality Accreditation certificate by SGS a testimony for quality work processes.During the year 1999-2000 the Company availed term loans from financial institutions towards working capital to an extent of Rs. 1070 lakhs and repaid term loans to an extent of Rs. 316 lakhs. The Company also incurred capital expenditure of Rs. 187 lakhs during the year.