Mayur Leather Products Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Leather industry in India holds a significant place in the Indian economy. This sector is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the Country. The leather industry is bestowed with an affluence of raw materials as India is endowed with 20% of world cattle & buffalo and 11% of world goat & sheep population. Added to this are the strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and the dedicated support of the allied industries.

The Indian footwear industry is currently under transformation phase and moving from a traditionally labour-intensive industry to a more technological and innovation driven industry. The leather industry is an employment intensive sector, providing job to about 4.42 million peoples, mostly from the weaker sections of the society. Women employment is predominant in leather products sector with about 30% share. India is the second largest producer of footwear in the world. The Council for Leather Exports has been playing an active role in the overall growth and development of the leather and footwear industry. [Source: Council for Leather Exports]

OPPORTUNITIES AND THREATS OPPORTUNITIES

The Company foresees significant opportunities in the leather footwear segment, driven by increasing consumer preference for high-quality, durable, and premium products. Rising disposable incomes, urbanization, and evolving lifestyle trends are expected to support sustained growth in both domestic and international markets. The rapid expansion of e-commerce platforms and digital retail channels provides additional avenues to enhance market penetration and reach new customer segments. Furthermore, growing consumer awareness and demand for sustainable and responsibly manufactured footwear present prospects for product diversification and brand positioning.

THREATS

Despite the favorable outlook, the Company remains exposed to certain threats inherent to the industry. Volatility in the prices of raw materials, particularly leather, can exert pressure on margins. The industry is also susceptible to rapidly changing fashion trends and heightened competition from synthetic a nd non-leather a lternatives, which may influence consumer preferences. Additionally, stricter environmental regulations governing tanning and processing activities, along with increasing global focus on sustainability and animal welfare, could result in higher compliance costs and operational challenges.

SEGMENT WISE PERFORMANCE

The Company deals/operates in only safety leather footwear segment. The detailed performance is given in the notes forming integral part of the financial statements of the Company.

INDUSTRY OUTLOOK

Your Company establish itself as a leading supplier of international standard leather safety footwear to the domestic as well as global footwear market. There is still lot of potential for growth in the turnover of the Company because the demand of Company s safety footwear products in the market is fast increasing. The Company is specially developing an innovative and different type of product as per requirement of the customers/market. There is a strong demand of leather safety footwear product in the market hence your Company is proactively engaged in taking appropriate steps to tap these opportunities in order to improve its market share and retain its position in the leather safety footwear section of the industry.

RISKS AND CONCERNS

Your Company continuously ascertains risks and concerns in the safety footwear industry affecting its present operations, future performances and business environment. In order to overcome such risks and concerns, your Company adopts preventive measures as considered expedient and necessary.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The details of internal control systems and their adequacy has been provided in the Directors Report, which forms part of this Annual Report.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE The company has not generated any revenue from its operations as against Rs. 24.22 in the previous financial year. However, During the financial year under review, the Company has earned profit of Rs. 9.05 as compared to the loss of Rs. -59.13 recorded in the previous financial year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Your Company has been continuously working to improve human resources skills, competencies and capabilities in the Company, which is critical to achieve desired results in line with its strategic business ambitions. During the year under review, there was no material development in human resources/industrial relations of the Company. Number of people employed in the Company as at March 31, 2025 is 5.

SIGNIFICANT CHANGES IN THE KEY FINANCIAL RATIOS

During the year, on a standalone as well as consolidated basis, there was no significant change in the financial ratios compared to that of the previous year.

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL

During the year, on a standalone as well as consolidated basis, there was no significant change in the Return on Net Worth compared to that of the previous year.

CAUTIONARY STATEMENT

Certain statements contained in the Management Discussion and Analysis report describing the Company s objectives, estimates, projections, expectations, or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied. Factors that could cause such differences include changes in domestic and international economic conditions affecting demand and supply, fluctuations in pricing in both domestic and overseas markets, regulatory changes, alterations in tax policies, and other economic developments in India and in the countries where the Company operates, as well as other incidental factors.