"It is a great pleasure to reconnect with you at the end of another successful year for your Company and present its Annual Report. Last year, in my letter to you, I had expressed our firm intent towards enhancing our retail and online presence in the domestic market to maximize the potential of our brands. I am delighted to share that we have acted upon on our strategy and this, in turn, has enabled us to deliver an impressive domestic performance."

Dear Shareholders,

Global conditions have been challenging, especially with weak consumer sentiments in Europe, our key export destination. Our prudent strategy of increasing our focus on the domestic market has served us well, enabling us to offset the slowdown in revenue from exports. Powered by robust sales in the domestic market, our total revenue stood at ₹ 1,153.79 Crore in FY 2018-19 as against ₹ 972.50 Crore in the previous year, an increase of 18.64%. Our domestic revenue surged to ₹ 651.92 Crore in FY 2018-19 from ₹ 449.09 Crore in the previous year, a growth of 45%, vindicating our focus in developing and expanding the domestic market. However, Profit before Tax (PBT) declined to ₹ 75.97 Crore in FY 2018-19 from ₹ 117.84 Crore in the previous year. The decline in profitability was primarily attributable to the rise in the cost of material imports due to adverse movement in foreign exchange, higher finance costs, and discounts offered in the domestic market as a conscious strategy to increase our consumer base.

Entering FY 2018-19, confident in the opportunities ahead of us, we proactively changed gears in the domestic market, pursuing robust and rapid expansion of our retail and online presence. During the year, we added 47 Exclusive Brand Outlets (EBOs), growing our total EBO presence by 29.56%. I am particularly pleased to share that the hybrid format of our EBO store, viz. online-offline store – where consumers can order online and collect the delivery at the outlet – has been extremely well-received. Spurred by their popularity, of the 47 EBO stores launched in FY 2018-19, 33 were online-offline stores. In recent years, we have also invested in increasing our digital infrastructure – be it in setting up division in Noida, U.P. to specifically cater to the e-commerce segment, setting up warehouses at strategic locations to ensure smooth and swift product flow, intensifying our focus on digital marketing or strengthening our presence on major online portals. Not surprisingly, in FY 2018-19, e-commerce-related sales registered the excellent growth among the various channels we leveraged in India to reach out to our consumers.

During the year, we added

47

Exclusive Brand Outlets (EBOs), growing our total EBO presence by

29.56%.

47

EBO stores launched in FY 2018-19,

33

were online-offline stores.

Powered by robust sales in the domestic market, our total revenue stood at

1,153.79 Crore FY 2018-19

The best way to gauge our performance, we believe, is the success of our brands. REDTAPE has inspired trust and admiration in global markets and is now also on a solid footing in India. Sales from REDTAPE footwear, apparels and accessories continue to grow year-on-year, an endorsement of the confidence, style and comfort the brand exudes. Our younger brands – Bond Street, REDTAPE Athleisure and MODE have also done exceptionally well. In a short span of time, each of these brands has captured the hearts of the target consumers as reflected in their strong growth in sales. We remain committed to deepening our consumer connect and enhancing the market share for all our brands.

At Mirza International, good performance goes beyond profits. It is about things that are right for our communities and planet. Passionately committed to a better and greener future for all, we embrace sustainable operations. Our tannery is equipped with a state-of-the-art effluent treatment plant, making our tannery operations environment-friendly. We have also successfully implemented various measures aimed at optimizing, recycling, recovering and reusing resources. To empower and enrich the lives of people in the areas where we live and work, we continued to undertake welfare activities in the areas of education, health and rural infrastructure

In India, moving forward, we plan to amplify our efforts in product innovation, retail presence, distribution network and the digital space. While this will initially result in some additional expense, we have no plans to sit still amid a highly favorable market environment. India’s growing economy and rising consumerism provide significant opportunities for the retail sector. To realize higher and sustained sales, we are committed to ensuring that our brands keep abreast with the upcoming trends and innovations to match consumer aspirations. We will also continue to work towards placing our brands at the right place at the right time to ensure demand fulfillment. While domestic markets will occupy center stage in our business strategies, we will also focus on key international growth markets, as we continue to leverage our global footprint. We remain mindful that today’s ultracompetitive marketplace requires a highly nimble and agile organization. Consistent with this belief, we will pursue the path that makes our operations more efficient, leaner and faster

On behalf of the Board, I would like to take this opportunity to thank our shareholders, bankers and government authorities for investing their faith and confidence in Mirza International Limited. I would also like to express my gratitude to our consumers for the patronage they have shown for our products. We aim to earn your continued trust every day. Finally, our sincere appreciation to our employees for the hard work and commitment they have demonstrated throughout another successful year.

As we move ahead in our journey, we shall continue to work diligently to take this Company to greater heights.

Thanking you,

Yours truly,

Rashid Ahmed Mirza

CMD & CEO