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 FY2019-20. 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. 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. At the end of the financial year 2019-20 the world had witnessed the global pandemic COVID-19 which has shaken the economy not only of the India but also of the whole world in just few months. The losses and impact of the pandemic cannot be ascertained in the current time.

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 sales was decreased in the year 2019-20 was Rs. 2,037,788/- as compare to previous year Rs. 29,207,908/- due to high manufacturing expenses, the Company had a loss of Rs. (2,763,895)/-in Financial Year 2019-2020 whereas during Financial Year 2018-2019, the Net Loss of the Company was Rs. (1,830,623)/-.

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 2019-20 F.Y 2018-19
Debtor Turnover Ratio 11.06 4.82
Inventory Turnover Ratio 0 3.98
Current Ratio 0.60 0.99
Debt Equity Ratio 0.68 0.72
Operating Margin Ratio -1.21 -0.06
Net profit Margin -1.36 -0.06



? 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

3 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.


CFO /WTD Certificate under Regulation 17(8) of SEBI (LODR) Regulations,2015


The Board of Directors,

High Street Filatex Limited

In compliance with Regulation 17(8) read with Schedule II Part B of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 Listing Agreement with the Stock Exchange, We hereby certify that:

A) We have reviewed the Standalone Audited Financial Statements and Cash Flow Statement of High Street Filatex Limited for the year ended March 31, 2020 and that to the best of our knowledge and belief:

33 These financial statements do not contain any materially untrue statement or omit any material fact nor contain any misleading statements , and

33 These financial statements present a true and fair view of the companys affairs and are in compliance with the applicable laws and regulations.

B) There are to the best of our knowledge and belief, there are no transactions entered into by the company during the year, which are fraudulent, illegal or violative of the companys code of conduct.

C) We accept responsibility for establishing and maintaining internal records, we have evaluated the effectiveness of the internal control systems of the company and we have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of Internal Controls, if any, of which we are aware and the steps that we have taken or propose to take to rectify the identified deficiencies.

D) We have indicated to the Auditors and the Audit Committee :

i. That there are no significant changes in internal control over financial reporting during the Year ,

ii. That there are no significant changes in accounting policies during the quarter , and that the same have been disclosed in the notes to the financial results ;and

iii. That no instances of significant fraud of which they have become aware and the involvement therein, if any, of the management or an employee having a significant role in the listed entitys internal control system over financial reporting.

Date: June Sd/- Sd/-
29, 2019 Bhagwan Singh Aishwarya
Place: (Chairman cum Sethia
Jaipur Whole Time (Chief Financial
Director) Officer)



To the best of my knowledge and belief and on the basis of declarations given to me by the Directors and the Senior Management Personnel of the Company, I hereby affirm that a Code of Conduct for the Board Members and the Senior Management Personnel of the Company which includes Code of Conduct for Prevention of Insider Trading and Whistle Blower Policy has been approved by the Board of Directors and all Board Members and Senior Management Personnel have fully complied with the provisions of the Code of Conduct of the Company in respect of the Financial Year ended March 31, 2020.


Analysis of Managerial Remuneration

Pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended the statistical analysis of the remuneration paid to Directors and Key Managerial Personnel (KMP) as against the other employees of the company and with respect to the performance of the company (PAT) is given below:

1. The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year 2019-20:-

Name of the Director Ratio
Bhagwan Singh 0.61:1

2. The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer. Company Secretary or Manager, if any, in the financial year 2019-20:-

There is no increase in remuneration of the Chairman cum Whole-time Director;

There is no increase in the monthly of the Company Secretary;

There is no increase in the monthly remuneration of the CFO.

Since none of the other Directors were paid remuneration in the financial year 2019-20, 2018-19 and 2017-18, therefore there is no increase in remuneration, during the year.

3. The percentage increase in the median remuneration of employees in the financial year 2019-20:- NIL

4. The number of permanent employees on the rolls of company:- 2

5. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:-

Average % increase in the salary of employees other than Managerial Personnel: - 2019 - No Change 2018- No Change

Average % increase in the Salary of the Managerial Personnel: 2019 - No Change 2018 - No Change

Affirmation: We hereby confirm that the remuneration paid to employees are as per the Remuneration policy of the company.

Reg Office: B-17, IInd, For and on behalf of
Floor 22 Godam Industrial Board of Directors
Area Jaipur -302006 High Street Filatex
(Rajasthan) Limited
Date: August 12, 2020 Bhagwan Singh
Place: Jaipur Chairman and Whole-
time Director
DIN: 02305246