Along with being India's leading leather footwear company and the largest supplier to global footwear brands comes the responsibility and opportunity to set benchmarks for the industry.

Dear Shareholders,

It is my privilege to present you the Annual Report of your Company for the Financial Year ended March 31, 2017. I am pleased to share that in the review period we have taken impressive strides in our business to solidify our position as India's leading footwear company.

Even in the backdrop of a challenging market environment, Mirza International Ltd. delivered yet another year of praiseworthy performance. Total revenue for Mirza International Ltd. stood at ₹936.56 crore in FY 2016- 17 as against ₹928.72 crore in the previous year. While the increase is marginal, we believe that considering the continued instability in several European markets, we have done remarkably well. Our prudent strategy of increasing our focus on the domestic market has served us well. Profit before Tax declined slightly from ₹115.82 crore in FY 2015- 16 to ₹106.40 crore in FY 2016-17.

The enterprising character of Mirza International Ltd. is embodied in its home-grown brand REDTAPE, a market leader in its category. In the year gone by, REDTAPE continued to gain traction in India and overseas underpinned by its ability to deliver on the high expectations of its customers. Furthermore, its fast-growing sales in the UK & US, a market which is the hub for all major brands, demonstrates that REDTAPE is well-entrenched as a leading leather footwear brand. We will continue to expand our distribution network to grow our market share. Underlining REDTAPE’s success, overseas revenue from REDTAPE increased by over 35% on a year-on-year basis.

In the domestic market, REDTAPE has been surging ahead by growing at a brisk pace. Revenue for REDTAPE from Indian operations grew by 28% in FY 2016-17 on a year-on year basis to clock ₹224.25 crore. As India moves confidently ahead, it is important to acknowledge that Indian consumers have become world-class consumers. Products that they seek are those that offer an amalgamation of quality and style at the right price points. The aspirational spirit of young India makes us confident in the continued success of REDTAPE. Through opening new stores and by leveraging the online platform for deeper penetration, we are optimistic that we will be able to drive robust revenue growth, going forward.

Our customers are at the core of everything we do. We are always looking at new ways to meet their preferences while bringing in value that they will appreciate. FY 2016-17 was a seminal year in reaching out to our customers as we launched two new sub-brands of REDTAPE: Bond Street and Redtape Athleisure Sports range based on our years of experience as well as insight.

Bond Street provides affordable polyurethrane (PU) shoes to address the growing demand for value-fashion footwear in Tier 2 & 3 cities. By offering excellent quality at affordable price points, we aim to meet the expectations of the mass segment.

Under Redtape Athleisure Sports range, we are providing high-quality athletic footwear which is priced at far lower price points than existing leading international brands. With the young population becoming increasingly conscious of health and fitness and embracing casual wear as part of their lifestyle, the market for sports footwear has been growing at a fast pace. Our sports shoes provide customers with an unmatched value-proposition, which, we believe, will help us to tap this market opportunity effectively.

Along with being India's leading leather footwear company and the largest supplier to global footwear brands comes the responsibility and opportunity to set benchmarks for the industry. Manufacturing products and sourcing raw materials responsibly and ethically; reducing the environmental impact of our business, and improving the quality of life of local communities where we operate are an integral part of our business. In this regard, we are pleased to share that our Tannery has been awarded the Gold rating by LWG (Leather Working Group) audit, a group working towards developing environmental Stewardship protocol specifically for the Leather manufacturing Industry.

The world has already started noticing the high growth of India; what is even more important is that for India this growth is only set to climb higher. In addition, by FY 2020, India will become the world's youngest country with 64 percent of its population in the working age group. The divide between big city and small city is thinning rapidly and Tier 2 & 3 cities are now the future growth engines. Accordingly, shopping pattern of India is expected to witness a growing shift towards aspirational and branded products. Further, the implementation of the GST will boost the business of organized players, especially in the low price segment. Your Company is well-poised to capture the wide opportunities that the domestic market offers by catering to customers across the pyramid and shoe segments, besides leveraging its strong global footprint to drive overseas sales. Our future is indeed bright.

On behalf of the Board, I would like to appreciate the faith reposed in us by our shareholders, bankers and government authorities. I would also like to express my gratitude to our customers for the patronage they have shown for our products. We aim to earn your continued trust every day. And finally, a sincere thank you to our employees for the dedication that they have demonstrated throughout another successful year.

As we move ahead, you can be assured that we shall work diligently to take this Company to greater heights.

Thanking you,

Yours truly,

Irshad Mirza