High Street Filatex Ltd Management Discussions.



The operating and financial review in this discussion pertains to the managements perspective on the financial condition as well as the operating performance of the Company for the FY2018-19. The following discussion of the Companys financial performance result and operating results should be read in conjunction with the Companys Financial Statements and Notes thereto and other information included elsewhere in the Annual Report. The Companys Financial Statements were prepared in compliance with the requirements of the Companies Act, 2013.


India emerged as the sixth-largest economy and retained its position as the fastest-growing trillion-dollar economy. However, after growing 7.2% in 2017-18, the Indian economy is estimated to grow at 6.8% in 2018- 19 as per the provisional estimates of the Central Statistics Office released in May 2019.

The principal developments during the year under review comprised a sustained increase in per capita income, decline in national inflation, steadying interest rates and weakened consumer sentiment starting from the second half of the financial year.During the fiscal under review,the Indian Government invested deeper in digitalization,renewanble energy capacity generation and infrastructure building. (Source: CSO provisional estimate, May 2019, Hindustan Times, The Economic Times)

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.


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 Companys operation has been increased as the sales in 2018-2019is Rs. 29207908/-as compared to Rs.235376 to the previous year 2017-2018 but due to high manufacturing and other expenses., the Company had a loss of Rs. 3783470 in Financial Year 2018-2019 whereas during Financial Year 2017-2018, the Net Loss of the Company was Rs. 258865.

The Company is suffering from losses and even could not able to afford the fixed expenses of the factory unit but its just trying its best to cope up everything with small amount of sales.

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 2018-19 F.Y 2017-18
Debtor Turnover Ratio 5.43 4.71
Inventory Turnover Ratio 5.21 0
Current Ratio 0.98 1.22
Debt Equity Ratio 0.72 0.86
Operating Margin Ratio -0.009% -0.097%
Net profit Margin -15.955 -0.2250



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

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

• The Companys 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 Companys 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


The Company has professional & adequate internal control systems which ensure protection against misuse or loss of the Companys 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 investors interests by ensuring the highest level of governance and periodical communication with investors. The Audit Committee also reviews the effectiveness of the Companys internal control system which provides adequate safeguards & effective monitoring of its transactions.


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


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.


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


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.


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 when decided,will be known in the future.


Statements in the Management Discussion and Analysis Report describing the Companys 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.