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

Jiwanram Sheoduttrai Industries Limited (JSIL), a leading manufacturer and exporter of industrial safety gear, leather gloves, and protective apparel, is set to benefit significantly from the IndiaUK Free Trade Agreement (FTA) signed on 24th July, 2025. The landmark deal eliminates duties on 99% of Indian exports to the UK, including leather goods—one of JSILs core product categories.

With over three decades of experience in manufacturing and exporting quality industrial safety solutions, JSIL views the FTA as a transformative opportunity to expand its footprint in the UK market.

Key Benefits for JSIL under the FTA:

• 0 Duty-Free Market Access for leather gloves and industrial safety apparel in the UK.

• 0 Export Potential to Cross $900 Million Industry-Wide in leather and footwear, positioning JSIL for strong top-line growth.

• ? Expanded Market Share as Indian leather products become more competitive against Vietnam, Turkey, and Bangladesh.

• 0 MSME Enablement: As a player actively engaging with MSME clusters, JSIL expects better margins and higher export volumes.

“This FTA marks a historic shift in global trade dynamics. With zero duties on our leather safety gloves and industrial gear, Jiwanram Sheoduttrai Industries is ideally positioned to capture significant market share in the UK. We anticipate strong growth in revenue, higher export volumes, and strategic partnerships with UK distributors,” said Mr. Alok Prakash, Managing Director, JSIL.

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 including the recent geo-political scenario and Trade war.

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 2024-2025 was Rs. 5390.06 lakhs as against Rs. 4304.69 lakhs during the financial year 2023-2024.

Profit for the financial year ended 31st March, 2025 stood at Rs. 228.50 lakhs as against Rs. 175.20 lakhs 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

Ratio	FY 24-25	FY 23-24	Remarks
Debtors Turnover	1.26	1.06	NIL
Inventory Turnover	1.30	1.25	NIL
Interest Coverage ratio	0.85	1.45	NIL
Current ratio	2.88	3.57	NIL
Debt Equity ratio	0.69	0.75	NIL
Operating profit margin (%)	7.97%	9.80%	NIL
Net profit margin (%)	4.4%	4.07%	NIL

 

		For and behalf of the Board
		Jiwanram Sheoduttrai Industries Limited
Place: Kolkata	Alok Prakash	Amitava Majumder
Date: 20/08/2025	Managing Director	Director
	DIN: 00375634	DIN: 09689719