Standard Shoe Sole & Mould India Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian leather and footwear industry is an important segment of the countrys manufacturing and export ecosystem and has significant potential for employment generation, value addition and export growth. India has an established presence across the leather value chain, including leather, footwear, leather goods, garments, saddlery and related components.

The footwear segment continues to be one of the major contributors to Indias leather and leather- products export basket. During FY 2025-26, footwear comprising leather and non-leather products accounted for approximately 51% of Indias exports from the leather and footwear industry. The sector continues to benefit from Indias large domestic consumption base, availability of raw materials, skilled manpower, established manufacturing clusters and increasing opportunities in international markets.

The industry is also witnessing increasing emphasis on product quality, technological upgradation, design development, sustainability, cost efficiency and compliance with international standards. Growing global diversification of supply chains presents opportunities for Indian manufacturers and suppliers to enhance their presence in international markets.

The Government of India continues to provide policy support to the leather and footwear sector with a focus on increasing manufacturing capabilities, improving competitiveness, promoting exports and encouraging investments in the sector.

Your Company, Standard Shoe Sole and Mould (India) Limited ("the Company"), is engaged in activities relating to footwear, synthetic shoe soles, ladies heels, moulds and allied products. The Companys business prospects are consequently influenced by developments in the footwear and footwear-component industry, domestic demand, export opportunities, raw-material prices, availability of working capital and the overall economic environment.

During the year under review, the Companys operations remained subdued, and the Company continued to focus on managing its existing financial and operational obligations.

2. OPPORTUNITIES AND THREATS Opportunities

The Indian footwear and leather industry continues to offer long-term growth opportunities on account of:

• Indias large domestic footwear consumption market;

• Increasing global demand for diversified and cost-effective sourcing destinations;

• Growing opportunities for Indian manufacturers in international markets;

• Increasing focus on manufacturing and supply-chain diversification;

• Government initiatives aimed at promoting manufacturing, exports and employment in the leather and footwear sector;

• Opportunities arising from trade agreements and improved market access in international markets;

• Scope for technological upgradation, product diversification and improvement in manufacturing efficiency; and

• Increasing demand for quality footwear components and allied products.

The Company may seek to benefit from these opportunities as and when its financial and operational position permits and subject to availability of adequate working capital and business requirements.

Threats

The principal risks and challenges faced by the industry include volatility in prices of raw materials and other inputs, fluctuations in foreign exchange rates, intense domestic and international competition, changes in consumer preferences, regulatory changes, availability of finance and working capital, technological changes and fluctuations in domestic and global economic conditions.

The Company is also exposed to risks arising from its present level of operations and financial position. The management continues to evaluate these factors and take appropriate measures, wherever feasible, to mitigate their impact.

3. SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Company operates predominantly in a single business segment relating to footwear, footwear components and allied products and, accordingly, separate segment-wise reporting is not applicable.

During FY 2025-26, the Company did not generate revenue from operations. The Company continued to focus on recovery of its outstanding dues and utilisation of available funds towards meeting its expenses and statutory and other obligations.

The management continues to evaluate opportunities for revival/improvement of business operations, subject to the Companys financial position, availability of resources and prevailing market conditions.

4. OUTLOOK

The outlook for the Indian footwear and leather sector remains positive over the medium to long term, supported by Indias large domestic market, increasing global sourcing opportunities and continued policy support for the sector.

The Company, however, continues to operate in a challenging financial and operational environment. The management remains focused on strengthening the Companys financial position, managing liabilities and obligations, improving operational efficiency and exploring viable avenues for revival and growth of the Companys business.

The Company remains committed to protecting the interests of its shareholders and other stakeholders and to maintaining appropriate standards of corporate governance, transparency and regulatory compliance.

5. RISKS AND CONCERNS

The Companys operations and financial performance are subject to various business, financial, operational and regulatory risks. These include, inter alia:

• subdued business operations and demand;

• availability of adequate working capital and financial resources;

• volatility in prices of raw materials and other inputs;

• competition from domestic and international manufacturers;

• changes in government policies, taxation and regulatory requirements;

• changes in consumer preferences and market conditions;

• foreign exchange fluctuations, to the extent applicable;

• legal and regulatory proceedings;

• availability of suitable technology and skilled manpower; and

• general economic and geopolitical conditions.

The Company continues to monitor these risks and take reasonable measures to mitigate their potential impact.

6. CONTINGENT LIABILITIES AND CONTINGENT MATTERS

There are certain claims and matters relating to the Company which have not been acknowledged as debts and which have been appropriately disclosed in the Notes forming part of the Financial Statements, wherever applicable.

Based on the information presently available, the status of the respective matters and the advice of the Companys professional advisors, the management believes that adequate disclosures have been made in the Financial Statements and that no further provision is presently considered necessary, except to the extent already recognised in the books of account.

The ultimate outcome of such matters may, however, depend upon future developments and decisions of the relevant authorities.

7. RISK RELATED TO CHANGES IN LAWS AND REGULATIONS

The Companys business is subject to various laws, rules, regulations and regulatory requirements applicable to its operations. Any significant changes in laws, taxation policies, environmental requirements, labour regulations, trade policies or other regulatory requirements may have an impact on the Companys business and financial performance.

The Company continues to monitor applicable statutory and regulatory developments and endeavours to ensure timely compliance with the applicable provisions.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an appropriate system of internal financial controls commensurate with the nature and scale of its operations.

The internal control framework is designed to ensure that transactions are appropriately authorised, recorded and reported; assets, to the extent applicable, are safeguarded; and applicable statutory and regulatory requirements are complied with.

The management periodically reviews the effectiveness and adequacy of the internal control systems and takes corrective measures wherever considered necessary.

The Audit Committee and the Board of Directors also review matters relating to internal controls and financial reporting as required under the applicable laws and regulations.

9. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial performance of the Company during FY 2025-26, as compared with FY 2024-25, is summarised below:

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	NIL	NIL
Loss for the Year	(11,61,154)	(18,56,021)

During FY 2025-26, the Company did not have any revenue from operations, which remained at Nil as in the previous financial year.

There was no capital expenditure incurred by the Company during the year under review.

The management continues to focus on controlling costs, meeting statutory and other obligations and evaluating viable opportunities for improvement in the Companys financial and operational position.

10. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Human resources remain an important component of the Companys governance and administrative framework. The Company maintains appropriate coordination between its management and employees for effectively managing its day-to-day affairs and statutory responsibilities.

As on 31st March 2026, the Company had two permanent employees, namely the Chief Financial Officer and the Company Secretary, who also constitute the Key Managerial Personnel of the Company in accordance with the applicable provisions of the Companies Act, 2013.

The Company maintains cordial relations with its employees and there were no material industrial relations issues during the year under review.

11. KEY FINANCIAL RATIOS

In accordance with the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to provide details of significant changes in key financial ratios, where applicable.

Sl. No.	Ratios	FY 2025-26	FY 2024-25
1	Debtors Turnover ratio	0	0
2	Inventory Turnover Ratio	0	0
3	Current Ratio	0.1512	0.1526
4	Debt Equity ratio	- 0.5748	- 0.4818

The changes in the above ratios are primarily attributable to changes in the Companys financial position, including its current liabilities, current assets and net worth during the respective financial years.

Since the Company did not have revenue from operations during either of the years under consideration, the Debtors Turnover Ratio and Inventory Turnover Ratio remained at Nil.

12. CAUTIONARY STATEMENT

Statements contained in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, 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 in such statements due to various factors, including changes in economic conditions, demand and supply conditions, raw-material prices, competition, government policies, taxation and regulatory changes, interest rates, availability of finance, litigation, business risks and other factors beyond the control of the Company.

The Company assumes no responsibility for publicly updating or revising any forward-looking statements in light of subsequent events or developments, except as may be required under applicable laws and regulations.

Place: Hyderabad	For & on behalf of the Board of Directors
Date: 05.09.2026
	Sd/-	Sd/-
	Rakesh Kolla	Sangita Parida
	Whole-Time Director	Director
	DIN: 09785871	DIN: 09215260