YEAR EVENTS The Company was incorporated on 30th May 1958, at Mumbai. It manufactures viscose filament rayon yarn, sulphuric acid, carbon-di-sulphide, anhydrous sodium sulphate, nylon yarn, etc. The Company uses the trade name "SNIALON" for its nylon yarn. 1973 - Consequent upon the merger of Gujarat Polyamides Ltd., the Company acquired their nylon yarn plant along with the collaboration agreement with Snia Viscose SPA of Italy. - In April, a letter of intent was received for the manufacture of 2,000 tonnes per annum of nylon tyre cord. The company has collaboration agreement with Unitika of Japan for the Trading. - Gujarat Polyamides Ltd., was amalgamated with the company with effect from 1st January. 1977 - Equity shares allotted at par on conversion of loans: 27,570 shares to IDBI on 16.11.1977; 10,810 shares to IFCI, 12,970 to LIC and 8,650 shares to UTI during January 1978. 1978 - The polycondensation plant for conversion of DMT into polyester chips was commissioned during the last quarter of the year. 1979 - The Company received a letter of intent from Govt. permitting it to manufacture 1,700 tonnes per year of nylon tyre fabric, against the original sanction of 1,000 tonnes per annum. - Government approved the Company's application under Technical Development Fund Scheme for the recovery of caprolactum from fresh water. For this purpose, a collaboration agreement was entered into with M/s. Italviscosa Eastern Trading SPA, Italy. 1980 - As part of its diversification plan, the company made an application for the manufacture of 10,000 tonnes per annum of synthetic detergent. 1981 - The nylon tyre cord plant was commissioned in early October. The Company took steps to increase the conversion capacity of nylon tyre yarn into nylon tyre fabric from 1,000 tonnes to 1,700 tonnes per annum. - The Company made a beginning in the supply of technical know-how and basic engineering for setting up a plant with a capacity of 13 tonnes per day of carbon-di-sulphide. - 1,20,000-11% Pref. shares issued at par to the public in 1980 (with a preferential right to the existing equity shareholders other than the foreign collaborators in prop. 1 Pref. to 5 equity) 11 Pref. shares redeemable during 10.10.1992/95. 1982 - The licensed capacity of polyester filament yarn was enhanced from 576 tonnes per annum on 140 denier basis to 1,777 tonnes per annum without any linkage with deniers. - The Company also undertook to set up a plant to recover mono ethylene glycol. - A letter of intent was received to increase the nylon filament yarn capacity from 2,436 tonnes to 6,000 tonnes per annum. - An application was made for a letter of intent to set up a portland cement project in the Rewa District of Madhya Pradesh with annual capacity of 10 lakh tonnes. 1983 - The equipment and machinery for the nylon tyre cord fabric section's expansion was commissioned increasing the capacity to 1,700 tonnes per annum. The Caprolactum recovery plant was also put into operation. - Industrial licence was received during the year to increase the nylon tyre cord fabric capacity from 1,700 tonnes to 3,400 tonnes per annum. The Company received permission to manufacture oleum 24% upto 10,800 tonnes per annum within the overall licensed capacity of 21,600 tonnes per annum of sulphuric acid. 1984 - The Company received a letter of intent to set up a newsprint plant with an annual capacity of 50,000 tonnes in the Ratnagiri district of Maharashtra State. - The Company proposed to set up a joint venture company in Thailand with an object to set up a plant for the manufacture of 9,000 tonnes per annum of nylon tyre cord. 1985 - Industrial licence was received for the manufacture of polyester filament yarn allowing/permitting the Company to raise its existing industrial licence capacity from 1,777 to 3,500 tonnes per annum. - The Company also proposed to double its capacity of caprolactum recovery plant for which necessary soft loans were sanctioned by the financial institutions. 1986 - The Mono Ethylene Glycol recovery plant (MEG) was commissioned in October. 1987 - Government approved the Company's application under the Board Banding Scheme to cover nylon filament yarn, polyester filament yarn and nylon tyre cord within the overall capacity of 25,000 tonnes per annum. - The contract for supply of foreign equipment was executed with Samsung Company Limited of Korea. 1989 - Out of 812 No. of equity shares pending. 163 shares were allotted. 1990 - The working was adversely affected mainly due to severe excise duty imports, political disturbances and increase in the cost of inputs. - During April, the Company offered 12,91,000-14% secured redeemable non-convertible debentures of Rs 100 each on rights basis in the ratio of 4 debentures to every 5 No. of equity shares held with a provision to offer one debenture for one equity shares where shares held are less than five. Only 12,90,803 debentures were taken up. 197 debentures remained unissued. - The debentures are redeemable in five equal annual installments beginning at the end of fifth year from the allotment date at a premium of 5% to be paid with the 3rd instalment. - Out of 649 No. of equity shares pending. 19 shares were allotted. 8,98,431 bonus shares issued in prop. 1:2. Allotment of 4 bonus shares in respect of 8 shares allotted during the year was pending. 1991 - The additional boiler was commissioned in March. As a measure of backward integration, the Company proposed to install polyester polycondensation plant to meet the requirements of polyester chips with a capacity of 45 TPD. 1992 - The company proposed to install two additional spinning machines to raise the capacity of POY plant to 15,000 tpa. - During February, the Company offered 4,00,000-16% secured fully convertible debentures of Rs 500 each on Rights basis in the proportion 1 deb. : 7 equity shares held. Additional 59,986 debentures allotted to retain oversubscription. - Simultaneously, another 20,000-16% fully convertible debentures were offered to employees' on an equitable basis. Each debentures was to be converted into 1 equity share of Rs 100 each at a premium of Rs 400 per share at the end of 6 months from the date of allotment of debentures. - 595-11% Pref. shares forfeited. 49,999 No. of equity shares allotted at a prem. of Rs 40 per share to financial institutions in conversion of loans. 4,04,794 bonus equity shares (including 18,960 fractions consolidated into 9,480 No. of equity shares) then issued in prop. 1:2. - 4,85,783 Right shares issued in January 1989 (prem. Rs 50; prop. 2:5). 72,020 additional shares allotted to retain over subscription. 25,565 No. of equity shares offered at a prem. of Rs 50 per share to employees/workers of the Company. Only 24,501 shares taken up. (Unsubscribed 1,064 shares were allowed to lapse). Allotment of 812 Right shares was pending. - 4,66,874 No. of equity shares issued on conversion of 16% debentures. 1993 - The Company maintained high production levels in Rayon, Nylon and POY plant. However, the capacity of nylon tyre cord plant was under utilised in view of the demand contraint due to availability of imported tyre cord at lower rates. - The Company proposed to embark upon major expansion programme of polyester spinning and poly condensation capacity of 25,000 tonnes per annum. - The Expansion/Modernisation of rayon plant was also under consideration. Also proposed to instal latest state of the art power generating system to increase in-house capacity upto 34MW. 1994 - Performance of the company affected due to high input cost coupled with the continuous rise in the cost of power and labour without corresponding rise in the selling prices. - The Synthetic filament yarn industry was faced with certain major problem like the uncertainty of supplies of basic and intermediate raw materials and liberal imports of yarn at cheaper rates resulted in unremunerative prices of yarn. - 7,193 No. of equity shares issued on conversion of 16% debentures. 1995 - The margin in Rayon division were affected due to increase in prices of raw materials. The performance of Nylon division was adversely affected due to rising raw material cost and lower sales realisation. In POY division, the prices were unremunerative. - The Company had planned projects for expansion of POY capacity to 15,000 tonnes per annum, backward integration by setting up polycondensation plant to produce polyester chips and also to put up a solid waste recovery plant. - The Company proposed to issue right shares at a price of Rs 150 per share with a price band of 20% per share in ratio of 1:1 to the existing shareholders.