high street filatex ltd Management discussions

OVERVIEW:

The operating and financial review in this discussion pertains to the management’s perspective on the financial condition as well as the operating performance of the Company for the FY2021-22. The following discussion of the Company’s financial performance result and operating results should be read in conjunction with the Company’s Financial Statements and Notes thereto and other information included elsewhere in the Annual Report. The Company’s Financial Statements were prepared in compliance with the requirements of the Companies Act, 2013.

INDUSTRY STRUCTURE AND DEVELOPMENTS

In past two years, the global pandemic COVID-19 has shaken the economy not only of the India but also of the whole world and continuously impacting every business. This year also Company had impact on the business, the buying power for socks segment was still less this year, because people at large suffered from financial crisis, pandemic impacted their stabilityand growth and it would take a lot of time to revive their stability.

COMPANY STRUCTURE AND DEVELOPMENTS

The Company adopted series of measures to boost its activities. But, due to non availability of strategic or financial partner, the unit cannot be yet revived in a full fledged way. In comparison to previous year, the sales of the Company was increased in the year 2021-22 to Rs. 22,91,298/- as compare to previous year Rs. 157,509/-. Further on inclusion of other incomes, the Company had a profit of Rs. 18,248,245/- in Financial Year 2021-2022 whereas during Financial Year 2020-2021, the Net Loss of the Company was Rs. 157,509/-.. This year the Company earned profits by sales and other incomes, and it seems that business is overcoming from the impact of pandemic. The Management Discussion & Analysis Report has been included in adherence to the spirit enunciated in the code of Corporate Governance approved by the Securities and Exchange Board of India. The report herein presents the Company Overview, SWOT Analysis, Initiatives by the Company and overall outlook of the Company for the future. This outlook is based on the assessment of the current environment which may vary due to future economic and other developments in the universal arena.

In spite of the above, the Company has not lost its hope to get a financial partner and our assiduous efforts continue for the same. The Company is looking for a strong future ahead and targeting the significant growth in the next year. Its future aim is to improve its financial position. Performance Review:

Ratios	F.Y 2021-22	F.Y 2020-21	Reason if change is more than 25%
Debtor Turnover Ratio	14.73	0.67	During the year most of the buyers paid their dues.
Inventory Turnover Ratio	3.80	0	Inventories were NIL at 31-03-21 but increased by 22.41 lacs as on 31-03-22.
Current Ratio	1.14	0.34	Total debts includes preference shares and in the financial year 2021-22 we redeemed preference shares of Rs. 142 lacs.
Debt Equity Ratio	2.10	4.3	Due to redemption of Preference Shares.
Operating Profit Margin (%)	591.69%	-1432.15%	Profit is increased due to sale of Property.
Net profit Margin (%)	591.69%	-1432.15%	Profit is increased due to sale of Property.
Return on net worth	1064.81%	90.90%	Sale of property and squared up of some liabilities and assets.

SWOT ANALYSIS

1. STRENGTHS:

? The Company has most strategically located plant and has adopted advanced production techniques.

? The Company due to past experience and having better goodwill with world’s best exporters is capable of recapturing the foreign market in short span of time.

? The Company’s products are very well established in foreign market. It is capable of making socks of different designs/patterns.

2. Weakness:

? The financial position of the Company is still not improved according to the set objectives. The management is trying its best to bring the Company in a better position by next year.

3. Opportunities:

? Due to expansion of the trading base of the company, there will be substantial increase in demand of

Company’s products.

? The Company will be able to use much potential available now in the domestic market on which every Multi National Company has set their eyes upon in India.

4. Threats:

? Due to high competitive pressure in the market, the Company has to operate in this competitive scenario and acquire a grip in the market to hold its foot firmly and upkeep the brand name.

? Adverse change in the Government Policies may affect the business operations of the Company.

? Technology Obsolescence: These are the days when technology takes no time to become obsolete. Thus to be at par with its competitors the Company has to ensure that it constantly updates and upgrades its technology

INTERNAL CONTROL SYSTEMS

The Company has professional & adequate internal control systems which ensure protection against misuse or loss of the

Company’s assets. The Company deploys a robust system of internal control that facilitates the accurate and timely compilation of financial statements and management reports; ensures regulatory and statutory compliance and safeguards investor’s interests by ensuring the highest level of governance and periodical communication with investors. The Audit Committee also reviews the effectiveness of the Company’s internal control system which provides adequate safeguards & effective monitoring of its transactions.

HUMAN RESOURCE DEVELOPMENT

Human Resource Development is paramount in every organization. The management continues to lay emphasis on identifying, developing the talent in the organization with a view to retain them and further training those who are capable of handling additional responsibilities. This works to increase employee satisfaction. Developing people and harnessing their ideas is high priority for the Company. Total number of employees at the end of March 31, 2022 stood at 02.

FINANCIAL PERFORMANCE WITH REFERENCE TO OPERATIONAL PERFORMANCE

Financials of the Company is detailed in the Financial Accounts of the Company forming part of the Annual Report. The Financial Statements have been prepared in compliance with the requirements of the Companies Act, 2013 and IND AS.

From last few years instead of manufacturing Company traded in socks and all the revenue from operation is generated from the same.

						Rs. in Hundreds
Year	Total Revenue	Revenue Growth%	PAT	% Change in PAT	EPS	% change in EPS
2021-22	182,482	11486.16	135,574	(701.00)	20.95	(700.03)
2020-21	1,575	(93.10)	(22,558)	(3.49)	(3.49)	(18.27)
2019-20	22,818	(92.19)	(27,639)	(4.27)	(4.27)	50.88

SEGMENT WISE PERFORMANCE

The Company is engaged into multi segment reporting during the year under review. The Company’s operation primarily relates to manufacturing and trading of (a) Knitted socks, head band and wrist band (b) trading in yarn (c) trading in commodities.

Capital	2021-22	2020-21
Employed(Segment assets- Segment	Rs. in	Rs. in
Liabilities)	Hundreds	Hundreds
(a)Manufacturing/Tradin g/Jobwork of Socks	27,243	222,836
(b) Trading of Yarn	-	-
(c) Trading of Commodities	(23,120)	(40,050)
(d) other sources	-	-
(d) Reedemable
Preference Share	(136,000)	(278,000)

OUTLOOK

The Company has not decided to enter into new field. It is exploring various business opportunities but nothing concrete has been derived. Barring unforeseen circumstances directors hope to find some concrete business opportunity to expand the business of the Company.

RISK AND CONCERN

Company at present is exposed to the normal industry risk factor of volatility in interest rate, economic cycle and credit risk. It has not yet decided its future course of activities. The impact of new activity, as and when decided, will be known in the future.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis Report describing the Company’s objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of the applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.

Reg Office: B-17, IInd Floor 22 Godam Industrial Area	For and on behalf of Board of Directors
Jaipur -302006 (Rajasthan)	For High Street Filatex Limited
Date: August 12, 2022	Sd/-
Place: Jaipur	Bhagwan Singh
	Chairman and Whole-time Director
	DIN: 02305246