Haria Apparels Ltd Management Discussions

The management of Haria Apparels Ltd. presents the analysis of the Company for the year ended on March 31^st, 2025 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, 2025 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, 2025.

Industry Structure & Development:

Apparels and Accessories

The global apparel and accessories market is experiencing continued growth in 2025, driven by shifting consumer preferences and technological advancements

The global apparel market is estimated at $1.84 trillion in 2025. Its projected to reach $2.3 trillion by 2030, with a CAGR of 4% from 2024. The accessories market alone is expected to reach $702.19 billion in 2025.

The United States is the largest apparel market at $365.70 billion in 2025. Indias market is projected to reach $109.45 billion in 2025 and $171.60 billion by 2034, with a CAGR of 4%.

Womens apparel holds the largest share in markets like India. Within global accessories, watches and jewelry are the largest segment. The second dhand apparel market is also significant and growing.

E-commerce continues to drive growth, with online sales surpassing overall retail growth in some regions. Globally, online sales are predicted to contribute significantly to the accessories market revenue by 2025.

Key trends

• Sustainability and Ethical Practices: Increasing consumer demand for sustainable and ethically produced items is driving the use of eco-friendly materials and fair labor practices.

• Athleisure and Comfort Wear: The popularity of comfortable and versatile athleisure wear continues.

• Digital Transformation: E-commerce, social commerce, and D2C brands are changing shopping habits.

• Personalization and Customization: Brands are focusing on tailored recommendations and customizable options.

• Experiential Retail: Physical stores are becoming more interactive with features like virtual try-ons.

• Quiet Luxury: A trend towards understated, high-quality designs is gaining popularity.

Challenges

• Supply Chain Disruptions: The industry faces ongoing challenges with logistics and costs due to supply chain issues.

• Competition: The market is highly competitive with both established and D2C brands.

• Economic Factors: Rising costs and economic uncertainties impact consumer spending and profitability.

• Unorganized Sector (India): A large unorganized sector in the Indian market presents challenges for standardization.

Opportunities

• Growing Rural Markets (India): Increasing incomes and internet access in rural India offer new consumer bases.

• Technological Integration: Utilizing AI and other digital tools can improve efficiency and reach.

• Government Initiatives (India): Policies like the PLI scheme and MITRA parks support sector growth.

• Demand for Sustainable Products: Growing consumer awareness creates opportunities for brands focusing on sustainability.

In 2025, the apparel and accessories industry is experiencing growth driven by changing consumer demands, sustainability, and technological adoption. Despite challenges, the industry is adapting through innovation and leveraging opportunities in new markets and government support.

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.237.40 Lacs as compared to previous year revenue from operations Rs. Nil and other income Rs. 242.50 Lacs

• The Company has made profit during the year is Rs.83.65 Lacs as Compared to Last Years profit of Rs. 89.24 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.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has an effective and adequate internal control system to ensure that all assets are safeguarded against loss and all transactions are authorized, 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.

	For and on behalf of the Board of Directors
	BIMAL KANTILAL HARIA
Date : 14th August, 2025	DIRECTOR & CFO
Place : Mumbai	DIN No. 00585299