Super Spinning Mills members at the 44th Annual General Meeting (AGM) of the Company held on July 07, 2006, have approved to borrow from time to time, if considered fit, any sum or sums of money not exceeding the sum of Rs 300 crore upon such terms and conditions as they may deem fit, notwithstanding that the money already borrowed by the company (apart from temporary loans obtained from the company’s bankers in the ordinary course of business) will exceed the aggregate of the paid-up share capital of the Company and its free reserves, that is to say, reserves not set apart for any specific purpose, subject to necessary provisions and approvals.

The board has been authorized to mortgage and / or charge all or any of the movable or immovable properties of the Company, wheresoever situate, both present and future or the whole or substantially the whole of the undertaking or undertakings of the company in favour of any financial institutions, banks and others for securing the credit facilities sanctioned / to be sanctioned by them to the company, provided however that the aggregate amount of credit facilities which may be secured hereunder and outstanding at any time shall not exceed the sum of Rs 300 crore, subject to necessary provisions and approvals.

The company will also increase the authorised share capital from Rs 5.50 crore to Rs 10 crore by creation of 45 lakh equity shares of Rs 10 each ranking pari-passu with the existing equity shares of the company and consequential amendment in memorandum of association of the company.

The board has given consent to subdivide the authorized share capital of the company comprising of 1 crore equity shares of Rs 10 each in the share capital of the company into 10 crore equity shares of Re 1 each, consequential amendment in memorandum of association of the company.

The company will be issuing and allotting equity shares of the face value of Re 1 each, of an aggregate number not exceeding 2 crore equity shares of Re 1 each out of the authorized share capital of the company to Qualified Institutional Buyers in accordance with the Guidelines for Qualified Institutions Placement subject to necessary provisions and approvals.