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Garden Silk Mills Ltd. Company History and Annual Growth Details

YEAR EVENTS 1979 - The Company was incorporated on 23rd July, as a private limited
company under the name and style of Vareli Weaves Pvt., Ltd.
The company became public on 17th July 1987. The company was
promoted by Shri Praful A. Shah. The main object of the company
is to Manufacture synthetic textiles.

1983 - The two units of Sudakome make 'G' type sizing machines with
winders of Japan make were installed.

- 1,990 shares allotted to promoters, directors etc.

1985 - 500 No. of equity 'B' shares and 2,999 - 15% 'C' Pref. shares
issued to promoters.

1986 - 2000 'A' Equity and 500 'B' equity shares issued as bonus in
propn. 1:1 to respective class of shareholders on 3rd March.
2,999 -15% 'C' Pref. shares converted into equity shares from 1st
January. 2,999 -15% 'C' Pref. shares converted into equity
shares from 1st January. All equity shares then subdivided into
shares of Rs. 10 each on 22nd September. 43,90,300 No. of equity
shares allotted to shareholders of amalgamated companies. 9,800
No. of equity shares then issued at par.

1987 - During the year, the company launched new studio line range of
pure silks and chiffons, the entire process of which was handled
in-house.

- The company invested towards implementation of its expansion and
modernisation projects in weaving and yarn preparatory sections.

- During the year, the company installed and commissioned 430
hi-tech Japanese Waterjet Looms.

- The company signed a technical collaboration agreement with
Tsudakoma Corporation of Japan for the manufacture of two-for-one
twisters and rewinders as a part of its diversification project
to manufacture machines such as filament yarn sizing machine,
looms and other textile accessories.

- Simultaneously with the equity issue in September, the company
also issued 22,00,000-12.5% secured redeemable convertible
debentures of Rs. 185 each for cash at par. Of these, the
following debentures were reserved for allotment on a
preferential basis:

- (i) 1,10,000 debentures to employees of the company (all were
taken up);

- (ii) 3,00,000 debentures to NRIs on repatriation basis (all were
taken up) and

- (iii) 2,42,000 debentures to UTI (all were taken up).

- The remaining 15,48,000 debentures were offered to the public
(all were taken up).

- The convertible part of Rs. 85 of each debenture was to be
converted into 1 equity share of Rs. 10 each at a premium of Rs.
75 per share.

- The non-convertible portion of Rs. 100 of each debenture was to
be redeemed at par in three yearly instalments of Rs. 30, Rs. 35,
and Rs. 35 on the 31st March of 1995, 1996 and 1997 respectively.

- By the Order of the High Court of Gujarat at Ahmedabad dated 13th
April, Scheme of Amalgamation of Garden Silk Mills Pvt. Ltd.,
The Prabhat Silk & Cotton Mills Co. Ltd., Garden Print Centre
Pvt. Ltd. and Special Weaves Ltd. with Vareli Weaves Pvt. Ltd.
was sanctioned whereby all the properties, rights and powers of
the Amalgamating Companies were taken over by the Amalgamated
company with effect from 1st January, 1986.

- In consideration of the Amalgamated Company issuing and allotting
20,82,010 No. of equity shares of Rs. 10 each credited as fully
paid-up to the shareholders of Garden Silk Mills Pvt. Ltd.,
5,48,250 No. of equity shares of Rs. 10 each credited as fully
paid-up to the shareholders of The Prabhat Silk & Cotton Mills
Co. Ltd., 4,05,000 No. of equity shares of Rs. 10 each credited
as fully paid-up to the shareholders of Special Weaves Ltd. The
said shares were issued without payment being received in cash.
Jayshree Filaments, Ltd. (JFL) was amalgamated with the company
with effect from 18th April.

- Pursuant to the Scheme of Amalgamation, the shareholders of JFL,
were issued 5,350 No. of equity shares of the company in the
ratio of 1 share of the company for every 8.2 shares held of JFL.

- The company raised Rs. 450 lakhs by issuing 4,50,000-14%
redeemable non-convertible debentures of Rs. 100 each on private
placement basis with UTI.

- The company took over 8,62,500-15% non-convertible debentures
originally issued by Vareli Textile Industries, Ltd. consequent
upon a Scheme of Amalgamation. These debentures would be
redeemed at par in three yearly instalments of Rs. 30, Rs. 35 and
Rs. 35 on 31st March, 1994, 1995 and 1996 respectively.

- With this the name of the company was changed to Garden Silk
Mills Pvt. Ltd., on 4th June.

1988 - Vareli Textile Industries, Ltd. (VTL) was amalgamated with the
company with effect from 1st April. Pursuant to the Scheme of
Amalgamation, the equity shareholders of VTL were allotted.
36,62,500 No. of equity shares of Garden Silk Mills, Ltd. (GSL)
in the ratio of 1 fully paid-up equity share of Rs. 10 each of
GSL for every 2 fully paid-up equity shares of Rs. 10 each of
VTL. GSL also took over 8,62,500-15% non-convertible debentures
of Rs. 100 each, originally issued by VTL, on the same terms and
conditions including rate of interest and terms of redemption.

1991 - The company also undertook to set up a polyester filament yarn
project for production of multi-filament and micro filament yarn,
having a capacity of 5,000 TPA in collaboration with NOY-VAL
Lesina, Ag, Switzerland.

1992 - Turnover and exports were lower compared to the previous year
mainly due to the post Ayodhya riots which resulted in complete
paralysis of production, trade and distribution.

- The company introduced sheer micro filament fabrics which made an
impressive debut in the market.

- During October-November, the company offered 97,42,710 rights
equity shares of Rs. 10 each at a premium of Rs. 60 per share in
the proportion 3:5.

- Simultaneously another 20,62,135 No. of equity shares of Rs. 10
each were offered to employees' at a premium of Rs. 60 per share
on an equitable basis.

- 112,42,710 Right Equity shares of Rs. 10 each of Rs. 10 each
(Prem. 60) issued.

1993 - The company proposed to manufacture cotton yarn by importing a
second hand cotton spinning plant comprising of 22,320 spindles.

- The company issued 17,12,000 global depository receipts each
representing five equity shares at an issue price of U.S. $26.28.

- 85,60,000 No. of equity shares issued in conversion of 17,12,000
Global depository receipt.

1994 - The introduction of excise duty on texturised yarn resulted in
increased cost of production of fabric which could not be passed
on to the consumers due to demand recession.

- The company was in the process of developing new microfilament
and blended Qualities to increase market share in polyester
fabrics.

1996

- Various measures were put under way to expand capacities and
ensure technological upgradatiion of facilities aimed at
strengthening the position in the extgremely competitive textile
business.

1997 -No News

1998

- strengthen Garden Silk 'Mills Ltd's networth Garden Finance Ltd (GSL) and Garden Securities Ltd (GSL) will be amalgamated with Garden Silk According to the company secretary of Garden Silk Mills (GSML) Kamalesh Vyas one share of GSML of face value Rs.10 will be issued to the shareholders of Garden Finance for four shares of face value Rs.10 held in the latter.

1999 - 2002 - No News

2003

-Unit Trust of India sells 7,81,372 shares of the company, stake comes down to 6.34% of the company

--Gujarat Gas Co Ltd has signed an agreement with GardenSilks Mills Ltd for the supply of
0.166million standard cubic meters of gas per day
 
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