Liberty is optimistic for the benefits available from the development of the present retail conditions

and the ongoing swing from unorganized retailing to organized.

Indian Footwear sector is
mainly benefited from its command on reliable resources, quality
finished leather, technological competence, expertise available with
human capital, low cost of Labour as compare to other developed
countries and established track record for manufacturing meeting
global standards.
Domestic market has huge potential and incredible opportunities to grow in near future due to
development of new markets, change in
consumption habits similar to developed countries, tilt towards
organized retailing, awareness for branded products and modernization
of lifestyles. Bulk customer segment is also up-coming because of
change in preferences and desire to satisfy the aspirations of the
working force. The urbanization trends, increase in education levels
and use of technology would also prove as impetus in future for the
footwear industry.
The year 2015 recorded a distinct slow down in the global growth and
most of the developed and emerging markets economies have
witnessed a fall in their growth rates. Liberty exports, mainly to Middle East
and European countries, have contributed approx 8% of the total
revenue of the Company for financial year 2015. Inflation, the major
cause of concern in the recent past, remained moderated whereas
rupee remained comparatively stable during financial year 2015.
Disposable income level though increases, yet consumer confidence
and accordingly their spent remained muted. Overall, 2015, in view of
the slowdown in global and domestic economy, remained challenging
for the Company.
India is the 2 largest, China being 1 , producer of footwear and other
leather articles in the world and for the year 2014-15, the exports of
this segment after registering a growth of 9.37% ,touched US $ 6.5
billion. Government of India, because of its performance and further
potential to improve, has identified this sector as a thrust sector in
many of its promotional schemes including foreign trade policy.
Government in consultation with RBI is also working on to reintroduce
interest subvention scheme for promoting footwear exports by
increasing competitiveness of Indian industry in the global markets.
The recent initiatives, including Make in India and skill development,
implemented by the Government of India would also create
innumerable opportunities for Indian footwear manufacturers to better
their performance and the competitiveness.
The changes introduced by the Government of India in its FDI policies
and the recent amendments in the Union Budget-2015 for reduction of
excise duty on certain category of leather shoes are very encouraging
for the overall development of the industry and will help domestic
footwear players to increase their competitiveness in the long run.
The change in consumer preference, acceptability of the new
launches, change in input costs, competition, Macro economic factors
and currency fluctuations are few of the risks and concern areas
associated with the business in which Liberty operates.
Liberty has an independent Audit committee which acts in accordance
with the terms of reference specified in writing by the Board including
evaluation of internal financial controls and risk management system.
The Audit Committee, on behalf of the Board, assesses the adequacy
and effectiveness of the internal control system in detecting fraud,
irregularities or infringement of laws, rules and regulations or material
control failures on a regular basis