Winsome Yarns Ltd

Incorporated on 19 Jul.'90, Winsome Yarns Limited was promoted by Winsome Textile Industries in the joint sector with the Punjab State Industrial Development Corporation. The Company manufactures combed and carded cotton yarn of different counts ranging from 20s to 40s. Its products are mainly used by the knitting and weaving industries for making various fabric. The company came out with a public issue in Oct.'93 to part-finance the cost of setting up a 100% export-oriented spinning mill with 23,040 spindles to manufacture cotton yarn. The unit commenced commercial production with effect from 1 Apr.'94. Due to the change in the product-mix requirement, some balancing equipment was acquired and installed, for which the company obtained financial assistance from an equipment financing scheme of IFCI. Company has implementing capacity addition of 25824 spindles. The additional capacity has been financed by internal accruals and term loans from IFCI & Canara Bank. Company is confident that commercial production has been commenced from 1st April, 1999. The company is planning to go buy-back of shares and process is going on. During 2007-08, out of 60,000 spindles, 30,000 spindles were installed and commercial production started on 1 July, 2007. In 2009, the expansion of knitwear unit of 160 machines were completed by addition of 104 knitting machines. Out of 30,000 spindles , 21,600 spindles were installed and commercial production started on 1 Aug'.08. In 2010, the Company added 60,000 spindles in two phases at it existing Derabassi Plant; installed another 180 knitting machines in three phases at Mohali; and implemented 3.9 MW Micro Hydel Power Project at 5 locations near Ludhiana, Punjab. Out of five Micro Hydel Power Projects having a total capacity to produce 3.9 MW of electricity, two Micro Hydel Projects commissioned during 2010-11. 4 Micro Hydel Projects commissioned in 2012. The initiation of CIRP from 22nd December, 2023, effected the marketability of Company's products and the Knitwear business has also been mainly carried out on job-work basis for third parties, which is continuing to the extent possible within limited resources available with the Company. During the year 2024-25, ARCK Resolution Professional LLP was appointed as the Resolution Professional (RP) of the Corporate Debtor (CD) vide Hon'ble NCLT order dated 14.03.2024. That upon taking charge, it was observed that both the manufacturing units of the CD i.e. Plant-I at Mohali (engaged in knitting of garments) and Plant-II at Derabassi (engaged in yarn production)-were not operational. The primary reasons for this were the complete absence of fresh orders. However, the operations during the CIRP remained extremely Limited. The Mohali Plant of the CD, with 182 machines and has a production capacity of approximately 1,20,000 pieces per month, was operating at a minimal level, producing only around 5,000 pieces per month. However, at the Mohali Plant from the month of December, workers were requested not to report to work temporarily until new orders were secured. Likewise, the Derabassi Plant, which comprises 1,20,000 spindles, had only about 12,000 spindles in use by the existing party which was carrying out the operations on job work basis.