high street filatex ltd Management discussions

OVERVIEW:

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 FY2022-23. 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.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The buying power for socks segment was less this year, because people at large suffered from financial crisis in past three years as pandemic impacted their stability and 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 have come to NIL in the year 2022-23 as compared to previous year Rs. 22,91,298/-. Further on inclusion of other incomes, the Company had a profit of Rs. 11,19,736/- in Financial Year 2022-23 whereas during Financial Year 2021-22, the Net Profit of the Company was Rs. 1,35,57,380/-.

The management is trying its best to bring the Company in a better position by next year.

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 2022-23	F.Y 2021-22	Reason if change is more than 25%
Debtor Turnover Ratio	0.00	14.73	This year there are no sales in business.
Inventory Turnover Ratio	0.00	0.90	This year cost of material consumed is Nil.
Current Ratio	0.87	1.14	-
Debt Equity Ratio	-1.00	-1.03	-
Operating Profit Margin (%)	0.00	591.69%	This year there are no sales in business.
Net profit Margin (%)	0.00	591.69%	This year there are no sales in business.
Return on net worth	1.30	1064.81%	This year loss is incurred in business.
Interest coverage ratio	0.000	0.00	-

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 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.

1. 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.
2. 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.
1. Threats:
• Due to highly 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 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

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, 2023 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
2022-23	0.00	(100)	11,197	(91.74)	(1.73)	(108.26)
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)

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.

Capital Employed (Segment assets- Segment Liabilities)	2022-23 Rs. in Hundreds	2021-22 Rs. in Hundreds
(a)Manufacturing/Trading/Jobwork of Socks	16,045	27,243
(b) Trading of Yarn	-	-
(c) Trading of Commodities	(23,120)	(23,120)
(d) other sources	-	-
(d) Reedemable Preference Share	(136,000)	(136,000)

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 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.

For and on behalf of the Board of Directors For High Street Filatex Limited

	Sd/- Bhagwan Singh Whole Time Director DIN: 02305246	Sd/- Aishwarya Sethia Director & CFO DIN: 0297618
Date: August 04,2023 Place: Jaipur		Registered Office: B-17, IInd Floor , 22 Godam Industrial Area Jaipur -302006(Rajasthan)