Jiwanram Sheoduttrai Industries Ltd Management Discussions

ANNEXURE-A

Industry structure and developments

The leather industry has a significant impact on the Indian economy. It is among the top ten foreign exchange earners for the country. With the leather industry being among the oldest trade in the country, India has a strong skilled manpower and innovative technology. The country has a strong and eco-sustainable tanning base and modern manufacturing units. It also has strong support from the leather chemical and auxiliary Industries. The industry employs about 4.42 million people in the country. It is a prominent source of employment in the rural parts of India with women employment at about 30% in the sector.

Opportunites and Threats

Opportunities: With the growing importance of Global export and export markets with the scope of expansion in the domestic market. Global Companies setting shop in India ensuring implementation in Safety thus growth.

Threats: The Companys business is in a highly competitive sector with a large number of players ranging from giant multinationals to small local players. This has led to intense competition and severe erosion in margins. However, with its strategy of pursuing multiple growth drivers and a strong focus on customer satisfaction, the company should be able to tackle the challenges.

Segment-wise or product-wise performance and Outlook

India being one of the largest exporters of leather goods in the world depicts the potential of the industry to grow and flourish. During FY 2023-2024 the sector touched exports of about USD 4.87 Billion and overall market touched about USD 10 Billion.

It is believed that in a decade the leather products manufacturing industry will touch output of USD 20 Billion.

Further, as per the Budget speech for FY 2024-25 Honble Finance Minister has said "I am also making additions to the list of exempted goods for manufacture of leather and textile garments, footwear and other leather articles for export." This will ensure increase in market size and opportunities for export of our industry in general and our Company particularly. With the increase in exports, market size and volume of the industry, the management believes that Jiwanram Sheoduttrai Industries Limited would be able to achieve CAGR of about 15% to 20% in coming years and subsequently it will maximize shareholders wealth.

Risks and Concerns

Rising overheads and increased operational costs pose a significant challenge with limited infrastructure currently and limited funding available for Investment in men and machinery.

Internal control systems and their adequacy

The Internal Control Systems of the Company are robust and commensurate with the nature, size and complexity of its business. Well-designed internal financial control measures as laid down and adopted continue to be followed by the Company. Policies and procedures, as approved by the Board have been adopted by the Management of the Company for ensuring orderly and efficient conduct of its business, including adherence to Companys policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

Discussion on financial performance with respect to operational performance

Revenue from Operations during the financial year 2023-2024 was Rs. 43,04,68,853 as against Rs. 42,31,66,561 during the financial year 2022-2023.

Profit for the financial year ended 31st March, 2024 stood at Rs. 1,75,20,486 as against Rs. 4,02,64,911 for the financial year ended 31st March, 2024.

Material developments in Human Resources / Industrial Relations front, including number of people employed

The Company believes that Culture and Employee Experience are the only differentiators in todays competitive environment. Endeavour is on to create a workplace where everyone feels valued, supported, and empowered to do their best. The Company focuses on growing talent from within and most of our business leaders are home grown who have played a pivotal role in the success of the organization.

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor

Ratio	FY 23-24	FY 22-23	Remarks
Debtors Turnover	1.06	1.09	NIL
Inventory Turnover	1.25	1.45	NIL
Interest Coverage ratio	2.44	4.34	During FY 23-24 the EBITDA declined and Interest expenses increased.
Current ratio	3.57	2.79	Due to increase in Current assets, Current ratio increased in FY 23-24
Debt Equity ratio	0.75	1.10	Debt Equity ratio improved due to increase in equity share capital.
Operating profit margin (%)	9.80%	11.21%	Operating Profit margin declined due to a slight decline in Operating Profit
Net profit margin (%)	4.07%	9.51%	Net profit margin declined due to decline in profit

 

		For and behalf of the Board
		Jiwanram Sheoduttrai Industries Limited
Place: Kolkata	Alok Prakash	Amitava Majumder
Date: 27/08/2024	Managing Director	Director
	DIN: 00375634	DIN: 09689719