Samtex Fashions Ltd Management Discussions.

Overview: -

Company Background

The Company was incorporated on 26th April, 1993 and having its Registered Office at Plot No. 163, Udyog Vihar, Greater Noida, Gautam Buddha Nagar UP 201308, engaged in the business of manufacturing and selling of Ready Made Garments.

Its Corporate Office is located at Unit No. 137, DLF Prime tower, F Block, Okhla Phase –I, New Delhi -110020 and it also has a Trading Office in USA in the city of New York in order to facilitate the marketing of Companys products.

Company Management

The Board of Directors of the Company presently comprised of three Directors headed by Mr. Atul Mittal Chairman & Managing Director of the Company. The Board has a combination of Executive and non-Executive Directors comprising of one Executive Director - namely Mr. Atul Mittal Managing Director and three non-Executive Independent Directors.

The Board of Directors meets regularly at least 4 times in a year. In the year 2018-2019 five such meetings were held, the details of the attendance of Directors in the Board Meetings have been given in the Report of Corporate Governance. The Board has also constituted Committees namely, (a) Audit Committee (b) Nomination and Remuneration Committee (c) Stake holders Relationship Committee. The committee members meet regularly from time to time to dispose of the work assigned to them respectively.

Product and Services

The Company is engaged in the business of manufacturing and selling of Ready Made Garments. In the Month of March, 2019 the company shifted to the new premises to setup the manufacturing facilities. As regards the commencement of manufacturing activities at the new premises the company is not having any major sales orders currently and the management is in process of procuring new sales orders. As soon some major sales orders are obtained the manufacturing activities will commence.

Industry Structure and Development

The Indian Textile Industry especially Garment Sector is export oriented and is one of the leading textile industry in the world, having an overwhelming presence in the Indian Economy. The international trade in clothing and textile plays a vital role through its contribution to industrial output, employment generation and export earnings for the country. The Industry is targeting towards modernization and expansions being encouraged by the prevailing textile strategies and policies.

The Indian clothing and textile industry has attracted huge investments and is moving towards economic growth. Restructuring its system and operations to match the international levels of technology, quality and standards. As a result, the capacity has expanded to meet the future requirements as the demands are growing but with slow speed . The business environment is very challenging.

Opportunities and Threats.

The modern technology, improvements in infrastructure and regulations, all are playing significant role among the different sectors of the Industry.

The textile and clothing industry is also facing increase in input prices as well as increase in conversion cost. The inflationary pressure both within the country and globally have bearing on the outlook of the textile and clothing industry.

In the current financial year 2018 -19 the entire production was done on job work basis. The Management is planning to procure orders with good margins to start the operations at new premises.

Internal control system and their Adequacy

The Companys Quality Control Department strictly follows the Quality Control Rules defined by the Company and inspects each and every piece of Readymade Garments before it is dispatched for Exports/ domestic sales. The Operational and Financial performances are also monitored through Internal Audit Systems which always keeps an eye so as to ensure that the operational performance is always kept commensurate with the Financial Performance and maintaining the effectiveness and efficiency of the system.

For and on behalf of the Board of Directors
For SAMTEX FASHIONS LIMITED
Sd/-
Place : New Delhi Atul Mittal
Dated : 27.08.2019 Chairman & Managing Director
DIN 00223366