**Ticker/ISIN: INE931D01020** Samtex Fashions Limited is an Indian enterprise historically engaged in the **manufacturing and sale of Ready-Made Garments** and the **trading of food grains**. While the company maintains a corporate structure and is a **Government Recognised Export House**, it is currently in a state of operational dormancy. Manufacturing has been suspended since **March 2019**, and the company is navigating a complex period of financial restructuring, debt litigation, and asset relocation. --- ### Corporate Structure and Geographic Footprint The company’s reportable segments are determined by geography, as monitored by the Board of Directors acting as the Chief Operating Decision Maker (**CODM**). | Segment | Status / Activity | | :--- | :--- | | **India** | Primary base for corporate operations; site of historical manufacturing. | | **New York (USA)** | Trading office; currently **not operational** for the 2024-25 period. | **Subsidiary Portfolio:** The company operates through two **wholly-owned material subsidiaries** based in Delhi: * **SSA International Limited (SSA):** Incorporated **May 3, 1995**. Currently declared a **Non-Performing Asset (NPA)**. * **Arlin Foods Limited (Arlin):** Incorporated **February 5, 2008**. Currently non-operational. * **Lina Global LLC:** Holds unquoted equity investments valued at **Rs. 259.85 Lakhs**. --- ### Operational Status and Facility Transitions The company has undergone multiple relocations, which, combined with a lack of new orders, has resulted in a total cessation of production. * **Manufacturing Halt:** No production activities have occurred since **March 2019**. * **Relocation History:** * Original site: **NSEZ, Noida**. * **FY 2017-18:** Shifted outside NSEZ. * **March 2019:** Relocated to Greater Noida. * **January 2021:** Established current Registered Office and Works at **Sikandrabad, Bulandshahr, UP**. * **Asset Status:** As of the latest filings, the shifting of assets to the Sikandrabad premises remains incomplete. Notably, **impairment testing** on fixed assets has not been performed despite these transitions. --- ### Financial Performance and Asset Quality The company is experiencing severe financial distress, characterized by persistent losses and a lack of operating revenue. **Key Financial Metrics:** | Metric | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | | **Net Profit / (Loss)** | **(Rs. 28.80 Lakhs)** | **(Rs. 75.16 Lakhs)** | | **Non-Current Trade Receivables** | **Rs. 28,502.89 Lakhs** | **Rs. 28,505.83 Lakhs** | | **Allowance for Doubtful Debts** | **Rs. 300.94 Lakhs** | **Rs. 300.94 Lakhs** | **Balance Sheet Concerns:** * **Trade Receivables:** A massive **Rs. 28,473.79 Lakhs** (consolidated) has been outstanding for **more than 3 years**. No provision for **Expected Credit Loss (ECL)** has been made for these long-overdue amounts. * **Inventory:** Stocks totaling **Rs. 25.32 Lakhs** have remained unused for an extended period; no provisions for obsolescence or damage have been recorded. * **Net Worth:** The company’s net worth is **totally eroded**, leading to a **Material Uncertainty Related to Going Concern** qualification from auditors. --- ### Debt Profile and Legal Encumbrances The company and its subsidiaries are embroiled in significant debt recovery actions by a consortium of banks led by **State Bank of India (SBI)** and **IDBI Bank**. * **Wilful Defaulter Status:** **IDBI Bank** has declared the company, its subsidiaries, and its promoters as **wilful defaulters**. * **Corporate Guarantees:** Samtex provided a guarantee of **Rs. 807.46 Crores** for **SSA International Limited**, which is now in default. * **Asset Seizures:** Under the **SARFAESI Act, 2002**, lenders have taken possession of and auctioned key properties, including the **Samalkha plant**. * **Debt Assignment:** Debts have been transferred to the **National Asset Reconstruction Company Ltd (NARCL)**. * **Security:** Credit facilities are backed by personal guarantees from **Naveen Mittal (CMD)**, **Rita Mittal**, and **Vinay Mittal**, alongside corporate guarantees from **Empire Finvest Limited** and **Gartex Overseas Pvt. Ltd.** --- ### Contingent Liabilities and Statutory Risks The company faces substantial financial exposure through litigation and tax demands. | Liability Item | Amount (Rs. Lakhs) | | :--- | :--- | | **Income Tax (A.Y. 2016-17)** | **584.19** | | **Income Tax Penalty (A.Y. 2010-11)** | **210.00** | | **Income Tax (A.Y. 2015-16)** | **174.87** | | **Bank Guarantees Outstanding** | **60.02** | | **Entry Tax** | **41.57** | | **Total Estimated Contingent Liabilities** | **~1,088.39** | **Regulatory Non-Compliance:** * **EPF Defaults:** Bank accounts were previously placed on **debit freeze** due to **Rs. 7.07 Lakhs** in unpaid dues. * **SEBI/BSE:** Fines have been levied for delayed financial filings, risking a transfer to the **'Z' group** (restricted trading). * **Accounting Standards:** Non-compliance with **Ind AS 36** (Impairment), **Ind AS 19** (Employee Benefits), and **Ind AS 16** (Depreciation) has been noted by auditors. --- ### Management Strategy and Revitalization Efforts Despite the operational standstill, leadership is attempting to stabilize the company through cost-cutting and asset evaluation. * **Leadership Stability:** **Atul Mittal** was re-appointed as **Chairman and Managing Director** for a **five-year term** (effective **August 30, 2025**). He also serves as the **CFO**. * **Voluntary Compensation Waiver:** To support fiscal health, the CMD has agreed to serve **without any remuneration, fees, or perquisites**, claiming only essential business travel reimbursements. * **Governance:** The Board held **6 meetings** in the **2024-25** period. New Independent Directors, **Shweta Gautam** and **Pankila Bhardwaj**, were appointed in **August 2024**. * **Revival Objectives:** Management is "exploring new avenues" to revive **Arlin Foods Limited** and transition other non-performing assets back into productive units. * **Litigation Success:** Recent rulings by the **Customs, Excise, Service Tax Appellate Tribunal** favored the company, and refunds for duties paid under protest are currently being processed. --- ### Shareholding and Market Data * **Promoter Holding:** **49.11%** (Post-reclassification as of March 2024). * **Public Holding:** **50.89%**. * **Dematerialization:** **95.342%** (**7,10,29,190** shares) are held in electronic form. * **Credit Rating:** **Suspended since FY 2016-17**. * **Capital Commitments:** **Rs. 226.55 Lakhs** remains as an unexecuted contract for a property in **Bhopal**.