SURYCOTMIL

Suryalakshmi Cotton Mills Ltd. has informed the Exchange that the scheme of arrangement of demerger in the Mahabubnagar Yarn Division of the Company into Rajvir Industries Limited has been approved by the Hon'ble High Court of Andhra Pradesh. The Company has filed certified copy of the Court Order with the Registrar of Companies, Andhra Pradesh. In terms of the sanctioned Scheme of Arrangement, the equity shareholders of the Company on the record date will be issued: (a) One equity share of face value of Rs.10/- each in Rajvir Industries Limited for every three equity shares of Rs.10/- each he

Suryalakshmi Cotton Mills Ltd. has informed the Exchange that at the meeting held on October 30, 2004 the Board of Directors approved the demerger of the Mahabubnagar Spinning Unit along with the Dyeing Plant into a separate Company viz. Rajvir Industries Limited. The appointed date for the demerger process is September 1, 2004. In consideration of the demerger, the shareholders of Suryalakshmi will receive 1(one) fully paid share of Rs. 10/- each in Rajvir Industries Limited for every 3 (three) shares of Rs. 10/- each held by them in Suryalakshmi as on the record date to be fixed in consultat

The shareholders of Suryalakshmi will participate in the capital of the new Company in a proportion to be determined by independent professional accountants. Subject to all compliances, shares of the new Company, Rajvir Industries Limited will also be listed on the Stock Exchanges. Further information on demerger process including that of ratio of share exchange, etc., will be intimated soon after the same is approved by the BoD's which is likely to be on or before October 31, 2004.

Suryalakshmi Cotton Mills Ltd. has informed the Exchange that in the Board Meeting held on October 01, 2004, the BoD's of the company considered various restructuring options and approved proposal of demerger of its yarn division i.e. the yarn manufacturing unit at Mahabubnagar (including the Dyeing Plant) will stand transferred, w.e.f. September 01, 2004 to a newly incorporated company viz., Rajvir Industries Limited. Suryalakshmi will continue with denim operations including the yarn division at Amanagallu, Mahabubnagar District for its captive needs. The dismantling of the quota regime from