haria apparels ltd Management discussions

The management of Haria Apparels Ltd. presents the analysis of the Company for the year ended on March 31st, 2023 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other developments both in India and abroad.

This management discussion and analysis ("MD&A") of Haria Apparels Ltd. for the year ended on March 31, 2023 contains financial highlights but does not contain the complete financial statements of the Company. It should be read in conjunction with the Companys audited financial statements for the year ended on March 31, 2023.

Industry Structure & Development:

Apparels and Accessories

India is the second largest producer of textiles and garments in the world. Indias fashion and apparel industry is a significant contributor to the countrys economy, accounting for 2.3% of the GDP. The industry is projected to experience strong growth in the coming years, with a projected CAGR of 10%, and is expected to reach US$ 190 billion by 2025-26.

According to the Indian E-commerce Trends Report of Unicommerce, the online fashion and accessories industry in India witnessed an order volume growth of 20.9%, becoming the segment with the highest order volumes in FY22 as compared to the previous financial year.

The apparel industry is known for its ability to adapt to change, with new trends and styles emerging regularly. Change has always been the wardrobe essential of this industry, happening almost every quarter of each year. This constant need for adaptation also brings its own set of challenges for the industry.

Brands are increasingly using organic cotton, bamboo, and linen, which are grown without synthetic pesticides and fertilizers. Recycled materials, such as recycled polyester and nylon, are also becoming more popular as they help to reduce waste and pollution.

Athleisure, a trend that combines athletic and leisure wear, has been revolutionizing the fashion industry in recent years. This trend has been driven by the increasing popularity of comfortable, functional clothing worn both in and out of the gym.

Global - Economic Overview

The baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent. Global headline inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflations return to target is unlikely before 2025 in most cases.

Few parts of the world will limp into 2023 quite like South Asia. Consider the year the region has just had. In Sri Lanka, the economy collapsed, inflation hit 70%, food and fuel ran short and a president was chased out of the country by a popular uprising. Pakistan flirted with default, suffered biblical floods that caused an estimated $32bn-40bn in damage, and must put up with constant disruption from Imran Khan, a rabble-rousing ex-prime minister, who is making the country ungovernable. In Bangladesh, there were horrifying industrial accidents, more floods, and a public losing patience with the 1m Rohingya refugees they must support. Nepal faced dwindling foreign-currency reserves.

Yet amid all this gloom there is one bright spot. By most standards, India sailed through 2022 relatively unscathed. The lifting of pandemic restrictions allowed normal life to resume and migrants to move around the country once more. The central banks rate rises have been less brutal than those of rich countries. Inflation, at about 7%, looked positively cool compared with America and Britain, let alone Pakistan and Sri Lanka. The economy was forecast to expand by a respectable 6.8% for the full year, outstripping any major economy bar Saudi Arabia. Measured in dollars at current prices, India is now the worlds fifth biggest economy, taking Britains spot. The gap between the two will only widen in 2023, reckons the IMF.

India - Economic Overview :

"Indias GDP has reached $3.75 trillion in 2023, from around $2 trillion in 2014; moving from 10th largest to 5th largest economy in the world. India is now being called a Bright Spot in the global economy, tweeted Nirmala Sitharamans office.

S. 1 Last year, India surpassed UK to become the fifth largest economy and is now only behind US ($26,854 billion), China ($19,374 billion), Japan ($4,410 billion), and Germany ($4,309 billion) according to projections by the International Monetary Fund (IMF). Recent government data revealed that Indias GDP grew by 6.1 per cent in the fourth quarter of fiscal year 2022-23 beating Street estimates. For the entire fiscal 2022-23, the growth rate came in at 7.2 per cent underscoring the countrys economic resilience amid geopolitical conflicts and global headwinds.

Additionally, Chief Economic Advisor Dr V Anantha Nageswaran also lauded the 7.2 per cent growth recorded in the last fiscal and said that this is the first reliable estimate of GDP growth and ‘as more and more data become available, further revision will be for upside from 7.2 per cent.

"Private consumption has caught up with the pre-pandemic trend. It is almost as though the pandemic did not happen hurting consumption of households. The catch up has been swift. Of course, mainly driven by urban consumption," said CEA Nageswaran.

Internal Control System and their adequacy :

The Company is committed to maintaining an effective system of internal control for facilitating accurate, reliable and speedy compilation of financial information, safeguarding the assets and interests of the Company and ensuring compliance with all laws and regulations. The Company has an internal control department to monitor, review and update internal controls on an ongoing basis. The Company has put in place a well-defined organization structure, authority levels and internal guidelines for conducting business transactions. The minutes of Audit Committee would be reviewed by the Board for its suggestions/ recommendations to further improve the internal control systems.

PERFORMANCE:

• Revenue from operations during the year was Rs.Nil however the other income was Rs.2,33,15,252.00 as compared to previous year revenue from operations Rs.1,00,65,032.00 and other income Rs.3,51,09,606.00

• The Company has made profit during the year is Rs.1.17 Crores as Compared to Last Years profit of Rs.40.32 Lacs.

HUMAN RESOURCES:

The Company believes that its people are a key differentiator, especially in knowledge driven, competitive and global business environment. Adapting work culture to suit the dynamic balancing of people requirements and employee needs is an ongoing process. Fundamental HR processes which enable higher performance orientation, speed, skill and competency development, talent management and human asset are corner stones for the success of any organization. During the year Company operated at minimum number of employees.

INTERNALCONTROLSYSTEMAND THEIRADEQUACY:

The Company has an effective and adequate internal control system to ensure that all assets are safeguarded against loss and all transactions are authorised, recorded and reported correctly. All operational activities are subject to internal controls at frequent intervals. The existing control procedures are reviewed periodically to enhance their effectiveness, usefulness and timeliness.

CAUTIONARY STATEMENT:

Readers are cautioned that this Management Discussion and Analysis may contain certain forward looking statements based on various assumptions on the Companys present and future business strategies and the environment in which it operates. The Companys actual performance may differ materially from those expressed or implied in the statement as important factors could influence Companys operations such as effect of political conditions in India and abroad, economic development, new regulations and Government policies and such other factors beyond the control of the Company that may impact the businesses as well as its ability to implement the strategies.

	By Order of the Board of Directors
	For Haria Apparels Limited
Date : 14th August, 2023	KANTILAL HARIA
Place : Mumbai	CHAIRMAN
	DIN No. 00585400