Updates on Outcome of Board Meeting

• Security Code: 521206
• Company: SAMTEX

Samtex Fashions Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 14, 2017, inter alia, have consider and approved following;

1. The management has decided to discontinue conducting the 'garment' business from SEZ Noida as presently the economic policies and adverse commercial environment are not favorable for conducting the said business from SEZ thereby rendering the operations unviable. Under the circumstances the management is in an advanced stage of transferring the assets {worth Book Value of about Rs. 6 crores) on plot no's. 134 & 135 at SEZ Noida under rule 74A of SEZ Act 2006, amended Rules 2013 and considered option of moving garment business out of SEZ.

The Managing Director informed the Board that Unit Approval Committee of the Noida Special Economic Zone has granted approval under rule 74A of SEZ Act 2006, amended Rules 2013 to exit from NSEZ by transferring its assets & Liabilities to another LOA holder. He further informed that Capgemini Technology Services India Limited have expressed their keen desire to take the existing facility of the Company at NSEZ for their further Business expansion plans, Capgemini is World renowned IT services Company with its headquarters in France with Business interest the World over.

2. As regards 100% subsidiary, SSA International (SSA), it is hereby informed that SSA has suffered a loss on account of industry specific business dynamics such as periodical embargo imposed on import of rice by Iran from time to time, fall in demand of other countries, drop in prices of rice significantly. This led to cancellation of bulk orders from Saudi Arabia forcing SSA to sell finished products at non remunerative domestic prices resulting in incurring heavy losses to the Company. Further Company suffered heavily on account of torrential rains and devastating floods at its unit in MP which has led to a substantial loss, As a result SSA has approached its lending banks for restructuring of Bank facilities with an estimated loss of about Rs. 269 crores till submission of restructuring proposal and is awaiting the response.

Further another subsidiary Arlin Foods Limited presently has no operations and management is considering various options to commence activity in the same.