Standard Shoe Sole & Mould India Ltd Management Discussions

Annexure-1

Industry Structure and Development

The Leather industry in India holds a significant place in the Indian economy. India is the 2^nd largest producer of footwear, 2^nd largest exporter of Leather Garments, the 5^th largest exporter of Leather Goods and 3^rd Largest Exporter of Saddlery and Harness items. Leather is one of the most widely traded commodities globally. The growth in demand for leather is driven by the fashion industry, especially footwear. Apart from this, furniture and interior design industries, as well as the automotive industry also demand leather. Standard Shoe Sole and Mould (India) limited having object to carry on the business in footwear, synthetic shoe sole, ladies heels and moulds and also to deal in dyes, acids, alkalies etc. has also been affected. Even with the ease of lockdown norms, the consumer sentiment would take some time to revive.. Standard Shoe Sole and Mould (India) Limited having object to carry on the business in footwear, synthetic shoe sole, ladies heels and moulds and also to deal in dyes. acids. alkalies e1c. has also been affected.

Opportunities and Threats

Considering that Leather is a focus product in the "Make in India" campaign and also that India is being considered as one of the best destinations in the world for investing in the leather industry because India is endowed with abundant raw materials required for the industry to grow, this is expected to drive positive sentiments as foreign (leather) companies will have to come and invest here in India. Leather Industry is also eyeing an opportunity to increase exports to the US and other countries, at a time when Chinese shipments to these markets are becoming more expensive. While so far the Indian Exports were focusing in European countries there is now opportunity in the US and other countries that are opening up to Indian exports. But, due to Covid-19, Exports of leather sector have been severely affected so far. The major markets of Europe and USA have been severely affected by COVID-19.

Segment Wise or Product wise Performance

Your Company operates in only one segment. During the year 2022-23, the company had recovered its earlier dues which were used to meet the expenses and obligations.

Outlook

Your Company is restructuring its finance to mitigate the liabilities of the Company. Going forward, the Company remains committed to its shareholders and shall continue to deliver the best possible results, improvement in stakeholder service, ensure corporate governance and compliance with statutory laws, rules and regulations while also look forward to improve its financial performance.

Risks and Concerns and Contingent Liability

There are some claims against the Company which have not been acknowledged as debts which are mentioned in notes on accounts. On the basis of current status of these cases and legal advice obtained, the Company is confident that no provision is required in respect of these cases at this point in time.

Risk Related to Changes in Laws and Regulations

Any changes in the laws and regulations governing the leather and footwear industry could affect the business and financial condition of the Company.

Internal Control Systems and Their Adequacy

The Company has an adequate system of internal controls in place to ensure that all assets, if any, are safeguarded and protected and that all transactions are authorized, recorded and reported correctly.

Discussion on Financial Performance With Respect To Operational Performance

The Revenue from operations in the Financial Year 2022-23 was Rs. 47,11,745/- as compared to NIL in the previous Financial Year 2020-21. Financial Year 2022-23 was Rs. 10,60,937 as compared to Rs. 47,11,745 in the previous Financial Year 2021-22. The Company had incurred Loss of Rs. 31,44,166 in the Financial Year 2022-23 as compared to Loss of Rs. 1,59,69,765 in the previous Financial Year 2021-2022. There was no capital expenditure during the year under review.

Material Developments in Human Resources / Industrial Relation Front

The Companys human resources including key financial managers remain deeply committed to Companys growth and co-ordinate and co-operate at all levels to mitigate day to day challenges.

Presently, the Company has only 2 permanent employees i.e. the Chief Financial Officer and the Company Secretary, which also form part of the Key Managerial Personnel as per the provisions of the Act.

Key Financial Ratios

In accordance with SEBI (Listing Obligations and Disclosure Requirements)(Amendment) Regulations, 2018, the Company is required to give details of significant changes (i.e. changes of 25% or more as compared to the immediate previous financial year) in key financial ratios or specific ratios detail of which are given below:

Sl. No.	Ratios	FY 2021-23	FY 2021-22
1	Debtors Turnover ratio	0.28	11.26
2	Inventory Turnover Ratio	0	0
3	Current Ratio	1.09	1.67
4	Debt Equity ratio	10.81	1.49

CAUTIONARY STATEMENT

Statements in the Managements discussion and analysis report describing the Companys estimates, expectations or predictions may be read as forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that would make a difference to the Companys operations include demand-supply conditions, raw material prices, changes in Government regulations, tax regimes, economic developments within the country and outside the country and other factors such as litigation and labor negotiations.

Place: Kolkata	For & on behalf of the Board of Director
Date: 10.08.2023
	Sd/-	Sd/-
	Sudha Tenani	Mithun Paul
	Whole-Time Director	Director
	DIN: 09552406	DIN: 09552435