Haria Exports Ltd Management Discussions

The management of Haria Exports 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 Exports 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.

EXPORTS IN INDIA

Indias goods exports for 2022-23 scaled up significantly from earlier estimates to almost $451 billion, indicating a 6.9% year-on-year growth, with exports for March upgraded sharply to a nine-month high of $41.9 billion, as per Commerce Ministry data.

Indias overall exports (Merchandise and Services combined) in May 2023* is estimated to be USD 60.29 Billion, exhibiting a negative growth of (-) 5.99 per cent over May 2022. Overall imports in May 2023* is estimated to be USD 70.64 Billion, exhibiting a negative growth of (-) 7.45 per cent over May 2022.

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.

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. 30,31,791.00 as compared to previous year revenue from operations Rs.Nil and other income Rs. 1,11,92,667.00

• The Company has incurred loss of Rs. 5.87 Lacs during the year as Compared to Last Years profit of Rs. 1.17 Crores.

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 SYSTEMAND 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.