PSUs Approved for Disinvestment

The Punjab State Cooperative Spinning Mills Federation(SPINFED).

SPINFED was established in 1980 under the Punjab Cooperative Societies Act, 1961 with membership of 5, which rose to 9 as on 31.3.1999, with the objective to co-ordinate and facilitate the setting up of cotton spinning mills in the cooperative sector and manage their functioning.

Against the authorized capital of Rs.10.00 crore, paid up capital comprises of the federation is Rs. 600.14 lacs of which contribution by the State Government is to the extent of Rs.544.00 lacs and the balance Rs. 56.14 lacs by others. The total borrowings of unsecured loan are Rs.24.80 crore.

Capital Structure :

(Rs in crores) as on 31.3.01

Authorised Capital 1000.00
Paid up capital
- State Govt.
- Others
 
544.00
56.14
Total(i. + ii) 600.14

The management of the Federation is vested in a Supervisory Committee headed by a Chairman (Secretary, Cooperation) with Additional Registrar Cooperative (Administration), Chief Audit Officer, Cooperative Societies as members and the Managing Director of SPINFED as Convener-Member.

SPINFED coordinated and facilitated the setting up of 7 spinning mills in the cotton belt of the State in the Cooperative Sector with an outlay of Rs.84.13 crore. Out of which 50% was provided by the State and the remaining 50% was raised from financial institutions on a State guarantee. 

Status of 7 Spinning Mills

(Rs.in lac)

S.NO. Mills Project Cost Date of Installation
1. Kotkapura 525.00 30.10.1978
2. Abohar 905.00 01.10.1982
3. Malout 999.00 10.02.1984
4. Mansa 1076.00 26.02.1985
5. Goindwal 990.00 20.12.1986
6. Barnala 943.00 10.06.1987
7. Bathinda 2975.00 20.12.1992
  Total 8413.00  

 The Federation has financial stake of Rs. 56.14 lacs in the share capital of these mills including Nakodar Cooperative Waste Plant, which was liquidated long back in 1993.

In pursuance of its objectives, SPINFED administered the operations of spinning mills and after the liquidation of CSM Mansa, Malout, Kotkapura and Barnala, it was nominated to act as Special Purpose Vehicle for handling the liquidation affairs. Accordingly, SPINFED settled the Govt. guaranteed loans of these mills and also disposed off the assets of Mansa and Malout in the capacity of Liquidator through a tendering process.

In 1993, marketing of cotton bales in domestic as well as international markets was introduced as an additional objective of the apex body.  It under took such operations in joint venture with NAFED, New Delhi and made exports of 71448 cotton bales from 1992-93 to 1995-96 valued at Rs. 100 crore.  SPINFED is also equipped with ultra modern laboratory for testing the samples of raw cotton/its yarn to ensure quality control. 

Financial Analysis:

(Rs in crore)

S.No Indicators FY 96-97 FY 97-98 FY 98-99 FY 99-00 FY 00-01

1. Operating income 45.21 39.07 1.87 1.30 1.20
2. Operating P & L 0.98 1.63 0.34 0.001 (0.21)
3. P & L after tax 0.92 1.58 0.30 (0.03) (0.25)
4. Gross margin(%) 2.17 4.17 18.13 0.10 -
5. Accumulated P & L 2.11 3.70 4.00 3.97 3.71
6. Net worth 7.69 9.28 9.58 9.98 9.72
7. Paid-up capital 5.58 5.58 5.58 6.00 6.00
8. Capital employed 14.19 8.66 10.45 9.33 9.07
9. Working capital 13.92 8.44 10.28 9.18 8.96
10. Dept Equity Ratio * - - - - -
11. Current Ratio 1:26 1:53 1:65 1:15 1:13
12. >Return on shareholder’s (equity Rose) (%) 16.5 28.38 5.37 - -
13. Return on Capital Employer (ROCE) (%) 6.49 18.27 2.86 - -

*No long term debt.