Mar 31, 2016
DIRECTORSâ REPORT
To,
The Members,
The Board of Directors hereby submit the 23rd Annual Report of your Company together with the Audited Accounts of the Company for the year ended 31st Marchâ 2016.
FINANCIAL RESULTS
Rs. In Lakhs
PARTICULARS |
2015-2016 |
2014-2015 |
Sales and other Income |
8538.15 |
10551.50 |
Profit before tax, interest, depreciation and write offs |
530.85 |
720.03 |
Interest & Financial Expenses |
312.14 |
416.66 |
Depreciation |
102.64 |
104.79 |
Profit Before Tax |
116.07 |
198.58 |
Provision for Taxation : |
||
Current |
19.90 |
11.95 |
Deferred |
(15.41) |
(9.03) |
Earlier year |
- |
- |
Profit after Tax |
108.38 |
188.60 |
Balance of Profit from Previous Years |
3162.70 |
2974.10 |
Balance of Profit carried forward |
3271.08 |
3162.70 |
The company does not propose any transfer to General Reserve.
REVIEW OF OPERATIONS & FUTURE PROSPECTS:
The Gross Sales and other Income for the year ended 31st March, 2016 stood at Rs. 8538.16 lakhs and Net Profits at Rs. 108.38 Lakhs as compared to Rs. 10551.50 lakhs and Rs. 188.60 lakhs respectively in the previous year.
The international economic conditions especially in US are becoming more tough for survival. Board of Directors are finding it difficult as there is no sign of improvement in the years to come.
The Board of Directors in their meeting held on 28th May, 2016 discussed and decided to stop the production activity at its unit at NSEZ, Noida. A proposal for setting other business activity was placed. After some developments the manufacturing activities at NSEZ Noida unit were partially resumed.
Your Companyâs Wholly Owned Subsidiary namely SSA International Limited has achieved a Turnover of Rs. 1629.00 crores and Net Profit of Rs.7.21 crores. As you are already aware that Companyâs other wholly owned Subsidiary namely Arlin Foods Limited (formerly known as Sam Buildcon Limited) is not operational. Your Board is exploring new avenues for business. Your Directors further inform that on 9th July 2016 the Flood Water entered the Mandideep Plant of SSA International Limited, and there were losses of Inventory and some assets. The Insurance Surveyors are assessing the Losses.
MATERIAL CHANGES
During the year under review your company has sub-divided its share capital from 1 (one) Equity share having a face value of Rs. 10/- each into 5 (five) Equity Shares of the face value of Rs.2/- each.
As a result of such sub division the Authorized Share Capital of the company has been changed from 1,60,00,000 (One Crores Sixty Lakhs) Equity shares of Rs. 10/- each into 8,00,00,000 (Eight Crores) equity shares of Rs. 2/- (Rupees Two) each.
DIVIDEND
In order to conserve and strengthen the financial resources of the Company, the Directors regret their inability to recommend any dividend for the year 2015-2016.
DIRECTORS
Your Director Mr. Atul Mittal retires this year by rotation in accordance with the Articles of Association of the Company and being eligible offers himself for re-appointment.
All Independent Directors have given declarations that they meet the criteria of independence as laid down under section 149 (6) of the Companies Act, 2013.
BOARD OF DIRECTORS MEETINGS
During the year 7 (Seven) Board Meetings and 4 (four) Audit Committee Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.
AUDIT COMMITTEE
Pursuant to the provisions of section 177 of the Companies Act, 2013 and as per Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Audit Committee has comprise the following members:-
i) Mr. S.K. Gupta
ii) Mr. Raman Ohri
iii) Mr. Atul Mittal AUDITORS
STATUTORY AUDITORS
Pursuant to Section 139 of the Companies Act, 2013, Aggarwal & Rampal, Chartered Accountants, were appointed as Statutory Auditors in the 21st Annual General Meeting until the conclusion of 24th Annual General Meeting to be held in the calendar year 2017(subject to ratification of their appointment at every Annual General Meeting) at such remuneration as shall be fixed by the Board. In terms of the first proviso to section139 of the Companies Act, 2013 the appointment of the auditors shall be placed for ratification at every Annual General Meeting. Accordingly, the appointment of Aggarwal & Rampal, Chartered Accountants as statutory auditors of the Company, is placed for ratification by the shareholders. SECRETARIAL AUDIT
Pursuant to provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Company has appointed M/s. DMK, Associates, Company Secretaries, as Secretarial Auditor to undertake the Secretarial Audit of the Company for the FY 2015-16.
The Secretarial Audit Report for the Financial Year 2015-16 submitted by them in prescribed form MR-3 has been annexed hereto, marked as Annexure -4 and forms an integral part of this Report. The Secretarial Auditor has made certain observations. The observations and reply thereto are as under:
Qualifications/Observations
1. According to Section 178 of the Act and Regulations 19 of LODR, there must be minimum three Non-executive directors to constitute the Nomination and Remuneration Committee(NRC) whereas NRC of the Company is comprises of only two Non-executive Directors.
The Companyâs Board comprises of four numbers of Directors, with two Executive Promoter Directors and two Independent Non Executive Directors. The Company is in the process of appointing one more non executive director in the Board shortly.
2. It is observed that 100% promoterâs equity shares in the company are in not in dematerialized form as required under Regulation 31 of SEBI (Listing Obligation and Disclosure Requirement), 2015 (LODR).
As on 31st March, 2016 the equity share capital in non dematerialized form belonging to Promoter Category, have been shifted to others category and share holding pattern submitted to stock exchange for the period ended 31.03.2016 contains promoters equity as 100% De materialized form and is in compliance of Regulation 31 of SEBI (Listing Obligation and Disclosure Requirement), 2015 (LODR).
3. The constitution of Internal Complaints Committee (ICC) is not in accordance with Section 3 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013.
The company is in the process of appointing one member from NGO to make the constitution of Internal Complaints Committee in compliance of Section 3 of the Sexual Harassment of Women at Workplace ( Prevention, Prohibition and Redressal) Act, 2013.
4. The company has not attached Form AOC-2 relating to transactions incurred on arm length basis in the ordinary course of business as an annexure to Board report for the FY 2014-2015.
During the Financial Year 2014-15, all the transactions with the related parties were in ordinary course of business and on armâs length basis, hence, were out of the purview of Section 188 of the Act. Further all transactions with related parties were also reviewed by the Audit Committee of the Board. The AOC-2 relating to transactions for the Financial Year 2015-16 is attached with this Boardâs Report.
5. The Company has received a notice u/s 7A of Employeesâ Provident Fund & Miscellaneous Provisions Act, 1952 from Employeesâ Provident Fund Organization (EPFO) dated 05.08.2015 for determination of PF amount and thereafter received demand notice dated 11.07.2016 of Rs.6,11,93,017/-. Thereafter the Company has fled an appeal with Employeesâ Provident Fund Organization Tribunal (EPFOT) which was heard on 22.07.2016, EPFOT waived the pre deposit of said demand and stayed the impugned order of EPFO dated 11.07.2016 till further orders.
Your Company after receiving the notice from EPFO filed the appeal with Employeesâ Provident Fund Organization Tribunal (EPFOT) which was heard on 22.07.2016, EPFOT waived the pre deposit of said demand and stayed the impugned order of EPFO dated 11.07.2016 till further orders. Presently the matter is pending with EPFOT.
INTERNAL AUDIT
M/s. Ashok Aggarwal & Co. a firm of Chartered Accountants is conducting periodic Internal Audit of all operations of the Company and the Audit Committee of the Board of Directors has reviewed their findings regularly. Their reports have been well received by the Audit Committee.
AUDITORSâ REPORT
The Statutory Auditors of the Company has submitted their reports on the standalone and consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2016. The Auditor has made certain observations. The observations and reply thereto are as under:
Qualifications/Observations
Going concern concept of the company may be affected if the decision of the Board of Directors meeting held on May 28, 2016 to stop the production activities of the company is implemented by the management.
In the Board of Directors meeting held on May 28, 2016, Board decided to stop the production activities of the company at its unit at NSEZ, Noida. After this decision the Production activities were stopped for some time and later on after some developments were partially resumed. The necessary ratification of decision was informed to Stock Exchange and was taken on record by the Board of Directors.
Rest are self-explanatory and no further comments are required. The observation or comment of the auditors on financial transactions or matters are not having any adverse effect on the functioning of the company.
COMPLIANCE CERTIFICATE FROM COST AUDITOR FOR MAINTENANCE OF COST RECORDS
Pursuant to the provisions of section 148 of the Companies Act, 2013 and rules made there under and with Cost Accounting
Record Rules 2011, the company is maintaining the Cost records .
BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.
MANAGEMENT DISCUSSION AND ANALYSIS
As required by Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Managementâs discussion & analysis report is appended in the Annual report.
CORPORATE GOVERNANCE
The Company is committed to maintain the standards of Corporate Governance and adhere to the Corporate Governance requirements set out by SEBI.
As required under SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015 a separate report on Corporate Governance report along with Certificate on its compliance is annexed to this report.
DIRECTORSâ RESPONSIBILITY STATEMENT
In terms of Section 134(3)(c) read with Section 134(5), the Directors state thatâ
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) the Directors had prepared the annual accounts on a going concern basis;
(e) the Directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
(f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS
All independent directors have given declarations to the effect that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and provisions under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
POLICY ON DIRECTORSâ APPOINTMENT AND REMUNERATION
In terms of Section 178(3) of the Companies Act, 2013, upon recommendation of the Nomination and Remuneration Committee, the Board has adopted the Nomination and Remuneration Policy of the Company. Directorsâ appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other prescribed matters, are governed by such policy. As per terms of Section 178(4) of the Act, such policy is attached hereto as Annexure - 1 which forms part of this report.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has a vigil mechanism Policy to deal with instance of fraud and mismanagement, if any.
As per the policy objective, the Company encourages its employees who have concerns about suspected misconduct, to come forward and express these concerns without fear of punishment or unfair treatment. A vigil mechanism provides a channel to the employees and Directors to report to the management concerns about unethical behaviour, actual or suspected fraud or violation of the Codes of conduct or policy. The mechanism provides for adequate safeguards against victimization of employees and Directors to avail of the mechanism and also provide for direct access to the Managing Director/Chairman of the Audit Committee in exceptional cases. Such policy is made available on the website of the Company. LISTING AGREEMENT
The Securities and Exchange Board of India (SEBI) issued SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 on September 2, 2015 in order to streamline the provisions of the Listing Agreement for different segments of capital market in order to ensure better enforceability. The said regulations were effective from December 1, 2015. Accordingly all the listed entities were required to enter in to fresh Listing Agreement within six months from the effective date. Therefore, the Company entered into Listing Agreement with the BSE Limited in the month of February, 2016.
CREDIT RATING
During the year under review the Company sustained its long term credit rating of âBB â and short term credit âA4 â SUBSIDIARIES
The Company has two subsidiaries namely, SSA International Limited and Arlin Foods Limited (Formerly known as Sam Buildcon Limited). During the year, the Board of Directors (âthe Boardâ) reviewed the affairs of the subsidiaries. As per Section 129(3) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, a consolidated financial statement of the Company and its subsidiary has been prepared and attached to the stand alone financial statement of the Company. The Consolidated Financial Statements have been prepared in accordance with the relevant accounting standards. Form AOC-1 annexed to the Financial Statements.
The accounts of the Subsidiaries are also available for inspection for shareholders /members /investor, during the business hours at the registered office of the company.
CHANGE IN THE NATURE OF BUSINESS
There was no change in the nature of Business of the Company during the year. The Company has two wholly owned subsidiaries namely M/s SSA International Limited and M/s. Arlin Foods Limited (formerly known as M/s. Sam Buildcon Limited).There was no change in the nature of business in SSA International Limited as well as Arlin Foods Limited. PUBLIC DEPOSIT
The Company has not invited or accepted fixed deposits from public during the year under review, under Chapter V of the Companies Act, 2013 and the Rules made there under.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The internal Audit functions reports to the Chairman of the Audit Committee and to Chairman and Managing Director of the Company. The Internal Audit monitors and evaluates the efficiency and adequacy of Internal control systems in the company. Itâs compliances with operating systems, accounting procedure and policies at all locations of the Company.
RELATED PARTY TRANSACTIONS
During the year under review, there was no new transaction with related parties falling under the purview of Section 188 of the Act. All the transactions with the related parties were in ordinary course of business and on armâs length basis, hence, were out of the purview of Section 188 of the Act. All transactions with related parties were duly reviewed by the Audit Committee of the Board. Particulars of such transactions is mentioned in the prescribed Form AOC-2 is appended as Annexure- to the Boardâs Report.
LOANS, GUARANTEES AND INVESTMENT
During the year under review Company has invested Rs. 1.5 crores (Rupees One Crores Fifty Lakhs) in the equity capital and provided the Guarantee of Rs. 807.46 crores, enhanced from existing Rs.716.79 crores, for working capital limits and other limits to its wholly owned subsidiary SSA International Limited.
INDUSTRIAL RELATIONS
The Industrial relations remained cordial during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE OUTGO
In terms of Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules, 2014, a statement containing details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in the manner as prescribed under the Companies (Accounts) Rules, 2014, is given in Annexure - 2 hereto and forms part of this Report. EXTRACT OF THE ANNUAL RETURN
In terms of Section 92(3) read with Section 134(3)(a) of the Companies Act, 2013, the extract of the annual return in form
MGT-9 is annexed herewith as Annexure - 3
POLICIES
As per the regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 all listed entities are required to formulate certain policies. All such policies are available on our website i.e. www.samtexfashions.com. Key policies that have been adopted by the Board are as follows:
Name of the Policy |
Brief description |
Web link |
Vigil Mechanism Policy |
The Vigil (Whistle Blower) Mechanism aims to provide a channel to the Directors and employees to report genuine concerns about unethical behavior, actual or suspected fraud or violation of the Codes of Conduct or policy |
http://www.samtexfashions.com/finance_reports/ finance report download. php?id=1439197042. pdf&name=VIGIL MECHANISM POLICY |
Board Diversity |
To ensure a transparent Board nomination process with the diversity of thoughts, experience, knowledge, perspective and gender in the Board |
http://www.samtexfashions.com/finance_reports/ finance report download. php?id=1439196915.pdf &name=POLICY ON BOARD DIVERSITY |
Policy on Preservation of Documents |
This policy deals with the retention and archival of corporate records of the Company |
http://www.samtexfashions.com/finance_reports/ finance e_report _download. php?id=1460372452.pd f&name=Policy on Preservation of Documents |
Policy- Dealing with Related Parties |
This policy regulates all the transactions between the Company and its related parties |
http://www.samtexfashions.com/finance_reports/ finance _report_ download. php?id=1460372529. pdf&name=Policy- Dealing with Related Parties |
Policy on Material Subsidiary |
This policy deals with determination of Material Subsidiaries of Samtex Fashions Limited in terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 (SEBI LODR) |
http://www.samtexfashions.com/finance_reports/ finance _report_ download. php?id=1460372662. Pdf & name=Policy- Determining Material Subsidiary |
Materiality of Events |
The objective of the Policy is to determine materiality of events or information of the Company and to ensure that such information is adequately disseminated in pursuance with the Regulations and to provide an overall governance framework for such determination of materiality. |
http://www.samtexfashions.com/finance_reports/ finance _report _download. php?id=1460372810.pdf &name=Policy on Materiality of Events |
Risk Management Policy |
The objective of Risk Management at Samtex Fashions Limited is to create and protect shareholder value by minimizing threats or losses, and identifying and maximizing opportunities. |
http://www.samtexfashions.com/finance_reports/ finance report download .php?id=1439196980. Pdf & name=RISK MANAGEMENT POLICY |
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/ COURTS/ TRIBUNALS
A demand Notice dated 11.07.2016 from Employees Provident Fund Organization under section 7-A of the Employees Provident Funds & Miscellaneous Provisions Act, 1952 was received . An Appeal before the Employees Provident Fund Appellate Tribunal , New Delhi have been filed . As per Tribunal order dtd. 27.07.16 the notice issued to the company is liable to be st aside and been stayed.
DEMATERIALIZATION OF SHARES
Your Companyâs shares are participating both with National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL). The ISIN number of the Company is INE931D01020.
STOCK EXCHANGE LISTING
The Equity shares of your Company are listed at: The Bombay Stock Exchange, (BSE), Mumbai.
CORPORATE SOCIAL RESPONSIBILITY
The Company was not required to constitute corporate social responsibility committee pursuant to section 135 of the Companies Act, 2013.
CODE OF CONDUCT:
In compliance with Regulation 26(3) of the SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015and the Companies Act, 2013, the Company has framed and adopted a code of conduct. The code is applicable to the members of the Board and all employees of the Company.
The Board Members have affirmed compliance with the Code of Conduct for the period ended March 31, 2016. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
Company has adopted a policy for prevention of Sexual Harassment of Women at workplace and has set up Committee for implementation of said policy.
The Company is committed to provide a safe and conducive work environment to its employees. During the year under review. Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
ACKNOWLEDGEMENT
Your Directors wish to place on record their gratitude to members, business associates, various agencies of the Government, Financial Institutions and Banks for all the help and Co-operation extended by them to the Company.
They also acknowledge with appreciation the devoted services rendered by the workers, staff and Executives at all levels of the Company.
For and on behalf of the Board of Directors
For SAMTEX FASHIONS LIMITED
Rita Mittal
Place : New Delhi (Chairperson & Managing Director)
Dated : 12.08.2016 DIN 03398410
Mar 31, 2015
Dear Members,
The Directors' have pleasure in placing before you the 22nd Annual
Report together with the Audited Accounts of the Company for the year
ended 31st March' 2015.
FINANCIAL RESULTS Rs. In Lacs
PARTICULARS 2014-2015 013-2014
Sales and other Income 10551.50 9908.39
Profit before tax, interest,
depreciation and write offs 720.03 556.58
Interest & Financial Expenses 416.66 339.39
Depreciation 104.79 174.19
Profit Before Tax 198.58 43.00
Provision for Taxation :
- Current 11.95 23.74
- Deferred (9.03) (19.81)
Profit after Tax 188.60 39.07
Balance of Profit from Previous Years 2974.10 2935.03
Balance of Profit carried forward 3162.70 2974.10
The company does not propose any transfer to General Reserve.
REVIEW OF OPERATIONS & FUTURE PROSPECTS:
The Gross Sales and other Income for the year ended 31st March, 2015
stood at Rs. 10551.50 lacs, an increase of 7 % over the previous year
and Net Profits at Rs. 188.60 Lacs as compared to Rs. 39.07 lacs in the
previous year.
The international economic conditions especially in US are reviving and
Board of Directors are anticipating that situation will improve further
in the years to come.
Your Company's Wholly Owned Subsidiary namely SSA International Limited
has achieved a Turnover of Rs. 1745.40 crores and Net Profit of
Rs.28.78 crores,.
As you are already aware that Company's other wholly owned Subsidiary
namely Sam Buildcon Limited is not operational. Your Board is exploring
new avenues to revive the Company and planning to set up a Pasta
manufacturing Plant and also changed the name of this company to ARLIN
Foods Limited to match the new business activities.
A brief note on the performance of the subsidiaries is attached as
Annexure to this Annual Report.
Your Company would like to serve various products to provide good
service to its customers by supplying products like structured, casual
and formal wear garments and also the wrinkle free garments under
international brands taken by the Company -Greg Norman and English
Laundry, and is anticipating to grow at an impressive rate .
DIVIDEND
In order to conserve and strengthen the financial resources of the
Company, the Directors regret their inability to recommend any dividend
for the year 2014-2015.
DIRECTORS
Your Directors with profound grief inform the sad demise of Mr. Anil
Mittal Chairman & Managing Director, who passed away on 25th June 2014.
Mrs. Rita Mittal appointed as Additional Director w.e.f. 19th July,
2014 and designated as Chairperson and Managing Director in the Board
of Directors meeting dated 13th August, 2014. Mr. Atul Mittal
designated as Key Managerial Personnel and appointed as CFO of the
Company in the Board of Directors Meeting dated 14th February, 2015.
Mr.Atul Mittal, Director of the Company retire by rotation at the
conclusion of the ensuing Annual General Meeting of the Company, and
pursuant to article no. 89 of the Articles of Association of the
Company and being eligible, offer himself for re-appointment.
Mr. A.P Mathur and Mr. Vinay Mittal has resigned from the post of
Directorship w.e.f 10.11.2014 and 10.02.2015 respectively.
The Non- Executive Independent Directors as per the provisions of the
Companies Act, 2013 was re-appointmented for a period of 5 years in the
Annual General Meeting held on 30th September, 2014 and is not liable
to retire by rotation.
BOARD OF DIRECTORS MEETINGS
During the year 6 (Six) Board Meetings and 4 (four) Audit Committee
Meetings were convened and held. The details of which are given in the
Corporate Governance Report. The intervening gap between the Meetings
was within the period prescribed under the Companies Act, 2013.
AUDIT COMMITTEE
Pursuant to the provisions of section 177 of the Companies Act, 2013
and as per Clause 49 of the Listing Agreement the Audit Committee has
comprise the following members:-
i) Mr. S.K. Gupta
ii) Mr. Raman Ohri
iii) Mr. Atul Mittal
Mr. A.P Mathur resigned from the committee w.e.f 10th November, 2014.
The committee was reconstituted in the Board Meeting dated 9th December
2014 and Mr. Atul Mittal was appointed as new member of the Committee.
AUDITORS
Pusuant to Section 139 of the Companies Act, 2013, M/s Aggarwal &
Rampal Chartered Accountants, Delhi was appointed as Auditors until the
conclusion of the ensuing Annual General Meeting to be held in 2017(
subject to ratification of their appointment at every annual general
meeting ) at such remuneration as shall be fixed by the Board.
Certificate from Auditors has been received to the effect that their
reappointment, if made, would be in accordance with the limits
specified in Section 141 of the Companies Act, 2013. Your Directors
recommend the ratification of appointment of M/s Aggarwal & Rampal
Chartered Accountants from the conclusion of ensuing Annual General
Meeting until the conclusion of Annual General Meeting to be held in
the year 2016.
SECRETARIAL AUDIT
Pursuant to provisions of Section 204 of the Companies Act, 2013 and
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 the Company has appointed M/s. DMK, Associates, Company
Secretaries, as Secretarial Auditor to undertake the Secretarial Audit
of the Company.
The Secretarial Audit Report for the Financial Year 2014-15 submitted
by them in prescribed form MR-3 has been annexed hereto, marked as
Annexure-4 and forms an integral part of this Report. The Secretarial
Auditor has made certain observations. The observations and reply
thereto are as under:
Quallflcatlons/Observatlons
1. It is observed that Mr. Atul Mittal, Whole Time Director of the
company has signed the certificate of corporate governance, for the
financial year ended 31st March, 2014, on behalf of Mr. Anil Mittal,
Chairman & Managing Director, CFO and CEO of the company, been to USA
for Medical treatment for his serious medical health conditions and
later on expired on 25th June, 2014.
2. However, pursuant to Section 178 of the Act and Clause 49(IV) of
Listing Agreement, the company is required to have minimum three
non-executive directors for constitution of Nomination and Remuneration
Committee.It is observed that after the resignation of Mr. A.P. Mathur,
Non-Executive Independent Director on 10.11.2014, there were only two
non-executive directors on the board of the company. However, we have
been informed by the management that the company is in the process of
appointing Non-Executive Director shortly
Management Reply
1. Mr. Anil Mittal, the then Chairman and Managing Director of the
Company had been suffering from serious health problems from various
months and as per the Doctor's advice he has been admitted to Hospital
in USA and later on expired on June 25, 2014. Therefore Board of
Directors at its meeting held on 30th May, 2014 authorized Mr. Atul
Mittal, Whole Time Director sign the corporate governance report of the
Company on his behalf.
2. The Management is in the process of selecting the suitable
independent non executive director in the Board of the company and it
is expected that process will be completed shortly.
INTERNAL AUDIT
M/s Ashok Aggarwal & Co. a firm of Chartered Accountants are conducting
periodic Internal Audit of all operations of the Company and the Audit
Committee of the Board of Directors has reviewed their findings
regularly. Their reports have been well received by the Audit
Committee.
AUDITORS' REPORT
The Statutory Auditors of the Company has submitted their reports on
the standalone and consolidated Financial Statements of the Company for
the Financial Year ended 31st March, 2015, which are self-explanatory
and no further comments are required. There has been no observation or
comment of the auditors on financial transactions or matters which has
any adverse effect on the functioning of the company; further, there is
also no qualification, reservation or adverse remarks in the Auditors'
Reports on the standalone and consolidated Financial Statements of the
Company for the Financial Year ended 31st March, 2015.
COMPLIANCE CERTIFICATE FROM COST AUDITOR FOR MAINTENANCE OF COST
RECORDS
Pursuant to the provisions of section 148 of the Companies Act, 2013
and rules made thereunder and with Cost Accounting Record Rules 2011,
M/S M.K. Kulshrestha & Associates, Cost Accountants have been appointed
by the Board for the financial year 2015-16 for the Compliance Report
of cost accounting records. The Report for the F.Y. 2014-15 was well
taken in the Board of Director's Meeting.
BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an evaluation of its
own performance, the directors individually as well as the evaluation
of the working of its Audit, Nomination & Remuneration committees. The
manner in which the evaluation has been carried out has been explained
in the Corporate Governance Report.
MANAGEMENT DISCUSSION AND ANALYSIS
As required by Clause 49 of the Listing Agreement with Stock Exchanges,
a Management discussion & Analysis Report is appended . CORPORATE
GOVERNANCE
The Company is committed to maintain the highest standards of Corporate
Governance and adhere to the Corporate Governance requirements set out
by SEBI.
A separate report on Corporate Governance report along with Certificate
on its compliance is annexed to this report.
DIRECTORS' RESPONSIBILITY STATEMENT
In terms of Section 134(3)(c) read with Section 134(5), the Directors
state thatÂ
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(b) the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year and of the profit and
loss of the company for that period;
(c) the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
(d) the Directors had prepared the annual accounts on a going concern
basis;
(e) the Directors, had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
(f) the Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS
All independent directors have given declarations to the effect that
they meet the criteria of independence as laid down under Section
149(6) of the Companies Act, 2013 and Clause 49 of the Listing
Agreement.
POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
In terms of Section 178(3) of the Companies Act, 2013, upon
recommendation of the Nomination and Remuneration Committee, the Board
has adopted the Nomination and Remuneration Policy of the Company.
Directors' appointment and remuneration including criteria for
determining qualifications, positive attributes, independence of a
director and other prescribed matters, are governed by such policy. As
per terms of Section 178(4) of the Act, such policy is attached hereto
as Annexure - 1 which forms part of this report.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has a vigil mechanism Policy to deal with instance of fraud
and mismanagement, if any.
As per the policy objective, the Company encourages its employees who
have concerns about suspected misconduct, to come forward and express
these concerns without fear of punishment or unfair treatment. A vigil
mechanism provides a channel to the employees and Directors to report
to the management concerns about unethical behaviour, actual or
suspected fraud or violation of the Codes of conduct or policy. The
mechanism provides for adequate safeguards against victimization of
employees and Directors to avail of the mechanism and also provide for
direct access to the Managing Director/Chairman of the Audit Committee
in exceptional cases. Such policy is made available on the website of
the Company.
CREDIT RATING
During the year under review the Company sustained its long term credit
rating of "BB " and short term credit "A4 ".
DEVELOPMENT AND IMPLEMENTATION OF A RISK MANAGEMENT POLICY
The Board of Directors in its meeting held on 13th August, 2014 has
adopted a policy as the Risk Management Policy of the Company with main
objective of to ensure sustainable business growth with stability and
to promote a pro-active approach in reporting, evaluating and resolving
risks associated with the business. The implementation and monitoring
of this policy is currently assigned to the Audit Committee of the
Board. Though the Board is striving to identify various elements of
risk, however, in the opinion of the Board, there has been no element
of risk which may threaten the existence of the Company.
SUBSIDIARIES
The Company has two subsidiaries namely, SSA International Limited and
Arlin Foods Limited (Formerly known as Sam Bulldcon Limited). During
the year, the Board of Directors ('the Board') reviewed the affairs of
the subsidiaries. As per Section 129(3) of the Companies Act, 2013 read
with the Companies (Accounts) Rules, 2014 and Clause 32 and other
provisions of the Listing Agreement, entered into with the Stock
Exchanges, a consolidated financial statement of the Company and its
subsidiary has been prepared and attached to the stand alone financial
statement of the Company. The Consolidated Financial Statements have
been prepared in accordance with the relevant accounting standards.
Form AOC-1 annexed to the Financial Statements.
The accounts of the Subsidiaries are also available for inspection for
shareholders/members/investor, during the business hours at the
registered office of the company.
CHANGE IN THE NATURE OF BUSINESS
There was no change in the nature of Business of the Company during the
year. The Company has two wholly owned subsidiaries namely M/ s SSA
International Limited and M/s Arlin Foods Limited (formerly known as
M/s Sam Buildcon Limited).There was no change in the nature of business
in SSA International Limited. However M/s Arlin Foods Limited is
planning to set up a Pasta manufacturing Plant.
PUBLIC DEPOSIT
The Company has not invited or accepted fixed deposits from public
during the year under review, under Chapter V of the Companies Act,
2013 and the Rules made thereunder.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. The internal Audit functions
reports to the Chairman of the Audit Committee and to Chairman and
Managing Director of the Company.
The Internal Audit monitors and evaluates the efficiency and adequacy
of Internal control systems in the company. It's compliances with
operating systems, accounting procedure and policies at all locations
of the Company.
RELATED PARTY TRANSACTIONS
During the year under review, there was no new transaction with related
parties falling under the purview of Section 188 of the Act. All the
transactions with the related parties were in ordinary course of
business and on arm's length basis, hence, were out of the purview of
Section 188 of the Act. All transactions with related parties were duly
reviewed by the Audit Committee of the Board.
LOANS, GUARANTEES AND INVESTMENT
During the year under review Company has invested Rs. 5.50 crores
(Rupees Five Crores Fifty lakhs) in the equity capital and provided the
Guarantee of Rs. 716.79 crores, enhanced from existing Rs.568.10
crores, for working capital limits to its wholly owned subsidiary SSA
International Limited.
INDUSTRIAL RELATIONS
The Industrial relations remained cordial during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE OUTGO
In terms of Section 134(3)(m) of the Companies Act, 2013 read with Rule
8 of Companies (Accounts) Rules, 2014, a statement containing details
of conservation of energy, technology absorption, foreign exchange
earnings and outgo, in the manner as prescribed under the Companies
(Accounts) Rules, 2014, is given in Annexure - 2 hereto and forms part
of this Report.
EXTRACT OF THE ANNUAL RETURN
In terms of Section 92(3) read with Section 134(3)(a) of the Companies
Act, 2013, the extract of the annual return in form MGT-9 is annexed
herewith as Annexure - 3
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/ COURTS/
TRIBUNALS
There has been no significant and material order passed by any
regulator, courts or tribunals impacting the going concern status and
operations of the Company in future.
DEMATERIALIZATION OF SHARES
Your Company's shares are participating both with National Securities
Depository Ltd. (NSDL) and Central Depository Services (India) Ltd.
(CDSL). The ISIN number of the Company is INE931D01012.
STOCK EXCHANGE LISTING
The Equity shares of your Company are listed at: The Bombay Stock
Exchange, (BSE), Mumbai.
ACKNOWLEDGEMENT
Your Directors wish to place on record their gratitude to members,
business associates, various agencies of the Government, Financial
Institutions and Banks for all the help and Co-operation extended by
them to the Company.
They also acknowledge with appreciation the devoted services rendered
by the workers, staff and Executives at all levels of the Company.
For and on behalf of the Board of Directors
For SAMTEX FASHIONS LIMITED
Place : New Delhi RITA MITTAL
Dated : 11.08.2015 (CHAIRPERSON & MANAGING DIRECTOR)
DIN 03398410
Mar 31, 2014
The Members,
The Directors'' have pleasure in placing before you the 21st Annual
Report together with the Audited Accounts of the Company for the year
ended 31st March'' 2014.
FINANCIAL RESULTS Rs In Lacs
PARTICULARS 2013-2014 2012-2013
Sales and other Income 9908.39 7402.01
Profit before tax, interest, depreciation
and write offs 556.58 602.45
Interest & Financial Expenses 339.39 390.06
Depreciation 174.19 174.45
Profit Before Tax 43.00 37.94
Provision for Taxation :
- Current 23.74 32.46
- Deferred (19.81) (28.93)
Profit after Tax 39.07 34.42
Balance of Profit from Previous Years 2935.03 2900.61
Balance of Profit carried forward 2974.10 2935.03
REVIEW OF OPERATIONS & FUTURE PROSPECTS:
The performance during the year under review was towards improvement
specially for the top line. There was improvement in bottom line also
but not up to the mark. The Gross Sales and other Income for the year
ended 31st March, 2014 stood at Rs. 9908.39 lacs , an increase of 33%
over the previous year and Net Profits at Rs. 39.07 lacs as compared to
Rs. 34.42 lacs in the previous year.
The international economic conditions especially in US are reviving and
Board of Directors are anticipating that situation will improve further
in the years to come.
Your Company''s Wholly Owned Subsidiary namely SSA International Limited
has achieved a Turnover of Rs. 1789.45 crores with a growth of 59% over
the previous year and a Net Profit of Rs. 25.02 crores.
The other Wholly Owned Subsidiary namely Sam Buildcon Limited is not
operational.
A brief note on the performance of the subsidiaries is attached as
Annexure to this Annual Report.
Your Company would like to serve various products to provide good
service to its customers by supplying products like structured, casual
and formal wear garments and also the wrinkle free garments under
international brands taken by the Company -Greg Norman and English
Laundry and is anticipating to grow at an impressive rate.
DIVIDEND
In order to conserve and strengthen the financial resources of the
Company, the Directors regret their inability to recommend any dividend
for the year 2013-2014.
DIRECTORS
Mr. Atul Mittal, Director of the Company retire by rotation at the
conclusion of the ensuing Annual General Meeting of the Company, and
pursuant to article no. 89 of the Articles of Association of the
Company and being eligible , offer himself for re-appointment.
The Non- Executive Independent Directors are as per the provisions of
the Companies Act, 2013 are getting re-appointment for a period of 5
years, not liable to retire by rotation. The requisite resolutions
pertaining to the appointment / re-appointment appears at respective
items in the Notice along with the relevant Explanatory Statement and
is recommended to the Shareholders for approval.
AUDIT COMMITTEE
Pursuant to the provisions of Section 292 A of the Companies Act, 1956,
and as per the requirements of the Listing Agreement with Stock
Exchanges your Board of Directors had constituted an Audit Committee.
It comprised of the following Directors:
(i) Mr. S. K. Gupta as Chairman of the Committee
(ii) Mr. A. P. Mathur
(iii) Mr. Raman Ohri AUDITORS'' REPORT
Auditors'' observations contained in their Audit Report read with the
Notes on Accounts are self-explanatory and do not call for any further
clarifications.
AUDITORS
The Auditors M/s Aggarwal & Rampal hold office until the conclusion of
the ensuing Annual General Meeting and are recommended for
re-appointment. A Certificate from Auditors has been received to the
effect that their re-appointment, if made, will be in accordance with
the limits specified in Section 139 of the Companies Act, 2013.
INTERNAL AUDIT
M/s Ashok Aggarwal & Co. a firm of Chartered Accountants are conducting
periodic Internal Audit of all operations of the Company and the Audit
Committee of the Board of Directors has reviewed their findings
regularly. Their reports have been well received by the Audit
Committee.
COMPLIANCE CERTIFICATE FROM COST AUDITOR FOR MAINTENANCE OF COST
RECORDS
Pursuant to section 209 (1) (d) of the Companies Act, 1956 read with
Cost Accounting Record Rules 2011, M/S M.K. Kulshrestha & Associates,
Cost Accountants have been appointed for the Compliance Report of cost
accounting records maintained by the company for the Financial Year
2013-14.
MANAGEMENT DISCUSSION AND ANALYSIS
As required by Clause 49 of the Listing Agreement with Stock Exchanges,
a Management discussion & Analysis Report is appended.
CORPORATE GOVERNANCE
As required by Clause 49 of the Listing Agreement with Stock Exchanges,
a separate Report on Corporate Governance is appended together with
Certificate on Corporate Governance.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING
AND OUTGO
The information relating to conservation of energy, technology
absorption and foreign exchange earning and outgo as required under
Section 217 (1) (e) of the Companies Act, 1956, read with Companies
(Disclosure of particulars in the Report of Board of Directors) Rule,
1988 is given in the Annexure - A, which forms part of this Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
In pursuance of provisions of section 217 (2AA) of the Companies Act,
1956, the Directors'' confirm that:-
1. Applicable accounting standards have been followed in preparing the
annual accounts and material departures, if any, have been properly
explained.
2. The Directors have selected and applied accounting policies and
applied them consistently and have made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year and of
the profit or loss of the Company for that period.
3. The Directors have taken proper and sufficient care for maintenance
of adequate accounting records in accordance with the Companies Act,
1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
4. The Directors have prepared the annual accounts for the year ended
31.03.2014 on a going Concern basis. PERSONNEL
A statement pursuant to section 217 (2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules 1975, as
amended is given as Annexure - B, and forms part of this report.
CREDIT RATING
During the year under review the Company sustained its long term credit
rating of "BB " and short term credit "A4 ".
SUBSIDIARIES
In terms of the general approval granted by the Central Government
under Section 212(8) of the Companies Act,1956, the annual accounts and
other statements of subsidiary companies have not been attached with
the annual report of the holding company. The Company will make
available these documents and related detailed information upon request
by the Shareholders of the Company.
The annual accounts of the subsidiaries are also available for
inspection for any Shareholder/ member/ investor, during the business
hours at the Registered Office of the Company.
The Accounts of the Subsidiary, SSA International Ltd. and Sam Buildcon
Ltd. have been included in the consolidated Accounts in accordance with
the requirements of Accounting Standards AS-21 prescribed by the
Institute of Chartered Accountant of India and forms Part of this
Annual Report.
As required by Section 212 of the Companies Act, 1956, a Statement in
respect of the subsidiary is annexed and forms an integral part of this
report.
PUBLIC DEPOSIT
The Company has not invited or accepted any deposit from Public during
the year under review.
INDUSTRIAL RELATIONS
The Industrial relations remained cordial during the year under review.
DEMATERIALIZATION OF SHARES
Your Company''s shares are participating both with National Securities
Depository Ltd. (NSDL) and Central Depository Services (India) Ltd.
(CDSL). The ISIN number of the Company is INE931D01012.
STOCK EXCHANGE LISTING
The Equity shares of your Company are listed at:
1. The Stock Exchange Mumbai, (BSE), Mumbai.
2. The Delhi Stock Exchange Association Ltd. (DSE), New Delhi.
ACKNOWLEDGEMENT
Your Directors wish to place on record their gratitude to members,
business associates, various agencies of the Government, Financial
Institutions and Banks for all the help and Co-operation extended by
them to the Company.
They also acknowledge with appreciation the devoted services rendered
by the workers, staff and Executives at all levels of the Company.
For and behalf of the Board of Directors
For SAMTEX FASHIONS LIMITED
Sd/- Sd/-
Place : New Delhi S.K. GUPTA ATUL MITTAL
Dated : 30.05.2014 Director Joint Managing
Director
DIN 00223035 DIN 00223366
Mar 31, 2013
To, The Members,
The Directors'' have pleasure in placing before you the 20th Annual
Report together with the Audited Accounts of the Company for the year
ended 31st March'' 2013.
FINANCIAL RESULTS Rs. In Lacs
PARTICULARS 2012-2013 2011-2012
Sales and other Income 7402.01 5342.24
Profit before tax, interest,
depreciation and write offs 602.45 811.08
Interest & Financial Expenses 390.06 622.90
Depreciation 174.45 179.15
Profit Before Tax 37.94 9.03
Provision for Taxation :
Current 32.46 5.19
Deferred (28.93) (18.55)
Earlier year - 1.12
Profit after Tax 34.42 21.27
Balance of Profit from Previous Years 2900.61 2879.34
Balance of Profit carried forward 2935.03 2900.61
REVIEW OF OPERATIONS & FUTURE PROSPECTS:
The performance during the year under review was towards improvement
specially for the top line. There was improvement in bottom line also
but not up to the mark. The Gross Sales and other Income for the year
ended 31st March, 2013 stood at Rs. 7402.01 lacs, an increase of 38%
over the previous year and Net Profits at Rs. 34.42 lacs as compared to
Rs. 21.27 lacs in the previous year.
The international economic conditions especially in US are reviving and
Board of Directors are anticipating that situation will improve further
in the years to come.
Your Company''s Wholly Owned Subsidiary namely SSA International Limited
has achieved a Turnover of Rs. 1149.36 crores with a growth of 47% over
the previous year and a Net Profit of Rs. 18.99 crores in
consolidation.
The other Wholly Owned Subsidiary namely Sam Buildcon Limited not
performing well and achieved a turnover of Rs.5.86 cr. and Profits Rs.
0.02 cr.
A brief note on the performance of the subsidiaries is attached as
Annexure to this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS
As required by Clause 49 of the Listing Agreement with Stock Exchanges,
a Management discussion & Analysis Report is appended.
CORPORATE GOVERNANCE
As required by Clause 49 of the Listing Agreement with Stock Exchanges,
a separate Report on Corporate Governance is appended together with
Certificate on Corporate Governance.
DEMATERIALIZATION OF SHARES
Your Company''s shares are participating both with National Securities
Depository Ltd. (NSDL) and Central Depository Services (India) Ltd.
(CDSL). The ISIN number of the Company is INE931D01012.
DIVIDEND
In order to conserve and strengthen the financial resources of the
Company, the Directors regret their inability to recommend any dividend
for the year 2012-2013.
DIRECTORS
Mr. Vinay Mittal and Mr. S.K. Gupta, Directors of the Company retire by
rotation at the conclusion of the ensuing Annual General Meeting of the
Company, and pursuant to article no. 89 of the Articles of Association
of the Company and being eligible , they offer themselves for
re-appointment.
Information pursuant to the Corporate Governance requirement of the
Listing Agreement regarding the Directors seeking appointment/
re-appointment in the Annual General Meeting is annexed to the Notice.
AUDIT COMMITTEE
Pursuant to the provisions of Section 292 A of the Companies Act, 1956,
and as per the requirements of the Listing Agreement with Stock
Exchanges your Board of Directors had constituted an Audit Committee.
It comprised of the following Directors:
(i) Mr. S. K. Gupta as Chairman of the Committee
(ii) Mr. A. P. Mathur
(iii) Mr. Raman Ohri AUDITORS'' REPORT
Auditors'' observations contained in their Audit Report read with the
Notes on Accounts are self-explanatory and do not call for any further
clarifications.
AUDITORS
The Auditors M/s Aggarwal & Rampal hold office until the conclusion of
the ensuing Annual General Meeting and are recommended for
re-appointment. A Certificate from Auditors has been received to the
effect that their re-appointment, if made, would be within the
prescribed limit under Section 224(1B) of the Companies Act, 1956.
INTERNAL AUDIT
M/s Ashok Aggarwal & Co. a firm of Chartered Accountants are conducting
periodic Internal Audit of all operations of the Company and the Audit
Committee of the Board of Directors has reviewed their findings
regularly. Their reports have been well received by the Audit
Committee.
DIRECTORS'' RESPONSIBILITY STATEMENT
In pursuance of provisions of section 217 (2AA) of the Companies Act,
1956, the Directors'' confirm that:-
1. Applicable accounting standards have been followed in preparing the
annual accounts and material departures, if any, have been properly
explained.
2. The Directors have selected and applied accounting policies and
applied them consistently and have made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year and of
the profit or loss of the Company for that period.
3. The Directors have taken proper and sufficient care for maintenance
of adequate accounting records in accordance with the Companies Act,
1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
4. The Directors have prepared the annual accounts for the year ended
31.03.2013 on a going Concern basis.
PERSONNEL
A statement pursuant to section 217 (2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules 1975, as
amended is given as Annexure - B, and forms part of this report.
CREDIT RATING
During the year under review the Company sustained its long term credit
rating of "BB" and short term credit "BB".
SUBSIDIARIES
In terms of the general approval granted by the Central Government
under Section 212(8) of the Companies Act,1956, the annual accounts and
other statements of subsidiary companies have not been attached with
the annual report of the holding company. The Company will make
available these documents and related detailed information upon request
by the Shareholders of the Company.
The annual accounts of the subsidiaries are also available for
inspection for any Shareholder/ member/ investor, during the business
hours at the Registered Office of the Company.
The Accounts of the Subsidiary, SSA International Ltd. and Sam Buildcon
Ltd. have been included in the consolidated Accounts in accordance with
the requirements of Accounting Standards AS-21 prescribed by the
Institute of Chartered Accountant of India and forms Part of this
Report.
As required by Section 212 of the Companies Act, 1956, a Statement in
respect of the subsidiary is annexed and forms an integral part of this
report.
PUBLIC DEPOSIT
The Company has not invited or accepted any deposit from Public during
the year under review.
INDUSTRIAL RELATIONS
The Industrial relations remained cordial during the year under review.
ACKNOWLEDGEMENT
Your Directors wish to place on record their gratitude to members,
business associates, various agencies of the Government, Financial
Institutions and Banks for all the help and Co-operation extended by
them to the Company.
They also acknowledge with appreciation the devoted services rendered
by the workers, staff and Executives at all levels of the Company.
For and behalf of the Board of Directors
For SAMTEX FASHIONS LIMITED
Sd/-
Place : New Delhi ANIL MITTAL
Dated : 30.05.2013 Chairman & Managing Director
Mar 31, 2012
The Directors' have pleasure in placing before you the 19th Annual
Report together with the Audited Accounts of the Company for the year
ended 31st March'2012.
FINANCIAL RESULTS Rs. In Lacs
PARTICULARS 2011-2012 2010-2011
Sales and other Income 5342.24 5978.67
Profit before tax, interest,
depreciation and write offs 811.08 612.62
Interest & Financial Expenses 622.90 319.53
Depreciation 179.15 179.50
Profit Before Tax 9.03 113.59
Provision for Taxation :
Current 5.19 28.29
Deferred (18.55) (14.22)
Earlier year 1.12 1.25
Profit after Tax 21.27 98.27
Balance of Profit from Previous Years 2879.34 2781.07
Balance of Profit carried forward 2900.61 2879.34
REVIEW OF OPERATIONS & FUTURE PROSPECTS:
The performance during the year under review was towards declining side
due to recessionary international economic conditions. So far as
Profits are concerned bottom line also declined due to increase in cost
of raw material , Labour coupled with tough competition, energy cost
and Low Margins. These factors adversely affected the profitability of
the Company for the year under report.
The Board of Directors are anticipating that situation will improve in
the years to come with the revival of international economic
conditions.
Your Company's Wholly Owned Subsidiary namely SSA International Limited
has achieved a Turnover of Rs. 779.97 crores with a growth of 14% over
the previous year and a Net Profit of Rs. 12.19 crores.
The other Wholly Owned Subsidiary namely Sam Buildcon Limited achieved
a turnover of Rs.6.42 cr. and Profits Rs. 0.13 cr.
A brief note on the performance of the subsidiaries is attached as
Annexure to this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS
As required by Clause 49 of the Listing Agreement with Stock Exchanges,
a Management discussion & Analysis Report is appended.
CORPORATE GOVERNANCE
As required by Clause 49 of the Listing Agreement with Stock Exchanges,
a separate Report on Corporate Governance is appended together with
Certificate on Corporate Governance.
DEMATERIALIZATION OF SHARES
Your Company's shares are participating both with National Securities
Depository Ltd. (NSDL) and Central Depository Services (India) Ltd.
(CDSL). The ISIN number of the Company is INE931D01012. As on date
92.13 % of the Share Capital of the Company, comprising 9121567 Equity
shares have been de- materialized.
STOCK EXCHANGE LISTING
The Equity shares of your Company are listed at:
1. The Stock Exchange Mumbai, (BSE), Mumbai.
2. The Delhi Stock Exchange Association Ltd. (DSE), New Delhi.
DIVIDEND
In order to conserve and strengthen the financial resources of the
Company, the Directors regret their inability to recommend any dividend
for the year 2011-2012.
DIRECTORS
Mr. A. P. Mathur and Mr. Raman Ohri, Directors of the Company retire by
rotation at the conclusion of the ensuing Annual General Meeting of the
Company, and pursuant to article no. 89 of the Articles of Association
of the Company and being eligible , they offer themselves for
re-appointment.
Information pursuant to the Corporate Governance requirement of the
Listing Agreement regarding the Directors seeking appointment/
re-appointment in the Annual General Meeting is annexed to the Notice.
AUDIT COMMITTEE
Pursuant to the provisions of Section 292 A of the Companies Act, 1956,
and as per the requirements of the Listing Agreement with Stock
Exchanges your Board of Directors has constituted an Audit Committee.
It comprised of the following Directors:
(i) Mr. S. K. Gupta as Chairman of the Committee
(ii) Mr. A. P. Mathur
(iii) Mr. Raman Ohri AUDITORS' REPORT
Auditors' observations contained in their Audit Report read with the
Notes on Accounts are self-explanatory and do not call for any further
clarifications.
AUDITORS
The Auditors M/s Aggarwal & Rampal hold office until the conclusion of
the ensuing Annual General Meeting and are recommended for
re-appointment. A Certificate from Auditors has been received to the
effect that their re-appointment, if made, would be within the
prescribed limit under Section 224(1B) of the Companies Act, 1956.
INTERNAL AUDIT
M/s Ashok Aggarwal & Co. a firm of Chartered Accountants are conducting
periodic Internal Audit of all operations of the Company and the Audit
Committee of the Board of Directors has reviewed their findings
regularly. Their reports have been well received by the Audit
Committee.
COMPLIANCE CERTIFICATE FROM COST AUDITOR
Pursuant to section 233B of the Companies Act, 1956 read with Cost
Audit Rules 2011, the Company will comply and will receive the ÃCost
Audit Compliance Report for the financial Year 2011-12 from the
Practicing Cost Accountant.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING
AND OUTGO
The information relating to conservation of energy, technology
absorption and foreign exchange earning and outgo as required under
Section 217 (1) (e) of the Companies Act, 1956, read with Companies
(Disclosure of particulars in the Report of Board of Directors) Rule,
1988 is given in the Annexure - A, which forms part of this Report.
DIRECTORS' RESPONSIBILITY STATEMENT
In pursuance of provisions of section 217 (2AA) of the Companies Act,
1956, the Directors' confirm that:-
1. Applicable accounting standards have been followed in preparing the
annual accounts and material departures, if any, have been properly
explained.
2. The Directors have selected and applied accounting policies and
applied them consistently and have made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year and of
the profit or loss of the Company for that period.
3. The Directors have taken proper and sufficient care for maintenance
of adequate accounting records in accordance with Companies Act, 1956
for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
4. The Directors have prepared the annual accounts for the year ended
31.03.2012 on a going Concern basis.
PERSONNEL
A statement pursuant to section 217 (2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules 1975, as
amended is given as Annexure - B, and forms part of this report.
CREDIT RATING
During the year under review the Company sustained its long term credit
rating of ÃBB" by FITCH. The Company's short term credit is rated
as ÃBB".
SUBSIDIARIES
In terms of the general approval granted by the Central Government
under Section 212(8) of the Companies Act,1956, the annual accounts and
other statements of subsidiary companies have not been attached with
the annual report of the holding company. The Company will make
available these documents and related detailed information upon request
by the Shareholders of the Company.
The annual accounts of the subsidiaries are also available for
inspection for any Shareholder/ member/ investor, during the business
hours at the Registered Office of the Company.
The Accounts of the Subsidiary, SSA International Ltd. and Sam Buildcon
Ltd. have been included in the consolidated Accounts in accordance with
the requirements of Accounting Standards AS-21 prescribed by the
Institute of Chartered Accountant of India and forms Part of this
Report.
As required by Section 212 of the Companies Act, 1956, a Statement in
respect of the subsidiary is annexed and forms an integral part of this
report.
PUBLIC DEPOSIT
The Company has not invited or accepted any deposit from Public during
the year under review.
INDUSTRIAL RELATIONS
The Industrial relations remained cordial during the year under review.
ACKNOWLEDGEMENT
Your Directors wish to place on record their gratitude to members,
business associates, various agencies of the Government, Financial
Institutions and Banks for all the help and Co-operation extended by
them to the Company.
They also acknowledge with appreciation the devoted services rendered
by the workers, staff and Executives at all levels of the Company.
For and behalf of the Board of Directors
For SAMTEX FASHIONS LIMITED
Sd/-
Place : New Delhi ANIL MITTAL
Dated : 14.08.2012 Chairman & Managing Director
Mar 31, 2010
The Directors have pleasure in placing before you the 17th Annual
Report together with the Audited Accounts of the Company for the year
ended 31st March, 2010.
FINANCIAL RESULTS Rs. In Lacs
PARTICULARS 2009-2010 2008-2009
Sales and other Income 5829.91 5410.66
Profit before tax, interest,
depreciation and write offs 599.14 448.64
Interest & Financial Expenses 299.64 277.17
Depreciation 177.04 162.40
Profit Before Tax 122.46 9.07
Provision for Taxation :
- Current 24.99 0.00
- Deferred (7.51) 2.90
- Fringe Benefit 0.00 2.21
- Earlier year (0.01) 0.00
Profit after Tax 104.99 3.96
Balance of Profit from Previous Years 2650.13 2646.17
Balance of Profit carried forward 2755.12 2650.13
REVIEW OF OPERATIONS & FUTURE PROSPECTS:
The performance during the year under review was towards accelerating
trend. There is consistent growth in the top as well as bottom line.
The Company has registered the Turnover of Rs.58.29 cr. which shows a
growth of 7.75% over the previous year. The Company earned the Net
Profits of Rs. 1.05 cr. as compared to Rs. 0.04 cr. in the previous
year.
The Board of Directors are anticipating that situation will improve
further in the years to come with the revival of international economic
conditions.
Your Companys Wholly Owned Subsidiary namely SSA International Limited
has however achieved a Turnover of Rs. 538 crores with a growth of 13%
over the last year and a Net Profit of Rs. 9.63 crores registering a
growth of 20% over the last year.
The other wholly owned subsidiary namely Sam Buildcon Limited has also
started its activities.
MANAGEMENT DISCUSSION AND ANALYSIS
As required by Clause 49 of the Listing Agreement with Stock Exchanges,
a Management discussion & Analysis Report is appended.
CORPORATE GOVERNANCE
As required by Clause 49 of the Listing Agreement with Stock Exchanges,
a separate Report on Corporate Governance is appended together with
Certificate on Corporate Governance.
DEMATERIALIZATION OF SHARES
Your Companys shares are participating both with National Securities
Depository Ltd. (NSDL) and Central Depository Services (India) Ltd.
(CDSL). The ISIN number of the Company is INE931D01012. As on date
91.47 % of the Share Capital of the Company, comprising 9055168 Equity
shares have been de- materialized.
STOCK EXCHANGE LISTING
The Equity shares of your Company are listed at:
1. The Stock Exchange Mumbai, (BSE), Mumbai.
2. The Delhi Stock Exchange Association Ltd. (DSE), New Delhi.
DIVIDEND
In order to conserve and strengthen the financial resources of the
Company, the Directors regret their inability to recommend any dividend
for the year 2009-2010.
DIRECTORS
Mr. Raman Ohri and Mr. Vinay Mittal, Directors of the Company retire by
rotation at the conclusion of the ensuing Annual General Meeting of the
Company, and pursuant to article no. 89 of the Articles of Association
of the Company and being eligible, they .offer themselves for
re-appointment. Mr. Atul Mittal has been appointed as the Joint
Managing Director of the Company.
Information pursuant to the Corporate Governance requirements of the
Listing Agreement regarding the Directors seeking appointment/
re-appointment in the Annual General Meeting is annexed to the Notice.
AUDIT COMMITTEE
Pursuant to the provisions of Section 292 A of the Companies Act, 1956,
and as per the requirements of the Listing Agreement with Stock
Exchanges your Board of Directors has constituted an Audit Committee.
It comprised of the following Directors:
(i) Mr. S.K. Gupta as Chairman of the Committee
(ii) Mr. A.P. Mathur
(iii) Mr. Raman Ohri
AUDITORS REPORT
Auditors observations contained in their Audit Report read with the
Notes on Accounts are self-explanatory and do not call for any further
clarifications.
AUDITORS
The Auditors M/s Aggarwal & Rampal hold office until the conclusion of
the ensuing Annual General Meeting and are recommended for
re-appointment. A Certificate from Auditors has been received to the
effect that their re-appointment, if made, would be within the
prescribed limit under Section 224(1 B) of the Companies Act, 1956.
INTERNAL AUDIT
M/s Ashok Aggarwal & Co. a firm of Chartered Accountants are conducting
periodic internal audit of all operations of the Company and the Audit
Committee of the Board of Directors has reviewed their findings
regularly. Their reports have been well received by the Audit
Committee.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING
AND OUTGO.
The information relating to conservation of energy, technology
absorption and foreign exchange earning and outgo as required under
Section 217 (1) (e) of the Companies Act, 1956, read with Companies
(Disclosure of particulars in the Report of Board of Directors) Rule,
1988 is given in the Annexure - A, which forms part of this Report.
DIRECTORS RESPONSIBILITY STATEMENT
In pursuance of provisions of section 217 (2AA) of the Companies Act,
1956, the Directors confirm that:-
1. Applicable accounting standards have been followed in preparing the
annual accounts and material departures, if any, have been properly
explained.
2. The Directors have selected and applied accounting policies and
applied them consistently and have made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year and of
the profit or loss of the Company for that period.
3. The Directors have taken proper and sufficient care for maintenance
of adequate accounting records in accordance with Companies Act, 1956
for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
4. The Directors have prepared the annual accounts for the year ended
31.03.2010 on a going Concern basis.
PERSONNEL
A statement pursuant to section 217 (2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules 1975, as
amended is given as Annexure - B, and forms part of this report.
SUBSIDIARIES
As required by Section 212 of the Companies Act, 1956, a Statement in
respect of the subsidiary is annexed and forms an integral part of this
report. The Annual Accounts of the Subsidiaries namely M/s SSA
International Limited (SSA) and of M/s Sam Buildcon Limited (SBL) are
attached for the financial year ended on 31.03.2010.
The Accounts of the Subsidiary, SSA and SBL, have also been included in
the consolidated Accounts in accordance with the requirements of
Accounting Standards AS-21 prescribed by the Institute of Chartered
Accountant of India and forms Part of this Report.
PUBLIC DEPOSIT
The Company has not invited or accepted any deposit from Public during
the year under review.
INDUSTRIAL RELATIONS
The Industrial relations remained cordial during the year under review.
ACKNOWLEDGMENT
Your Directors wish to place on record their gratitude to members,
business associates, various agencies of the Government, Financial
Institutions and Banks for all the help and Co-operation extended by
them to the Company.
They also acknowledge with appreciation the devoted services rendered
by the workers, staff and Executives at all levels of the Company.
For and behalf of the Board of Directors
For SAMTEX FASHIONS LIMITED
Sd/-
Place : New Delhi ANIL MITTAL
Dated: 28.08.2010 Chairman & Managing Director
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