Haria Apparels Limited is an Indian listed entity historically positioned within the **Fabrics & Garment** sector. In recent fiscal cycles, the company has transitioned from active manufacturing and trading to a model focused on asset management, internal financial support for group entities, and the optimization of non-operational income streams. --- ### **Core Business Model and Segment Performance** The company operates as a single-segment entity under **Ind AS 108**, focusing exclusively on the **Fabrics & Garment** industry within the domestic Indian market. * **Operational Status:** For the fiscal years ending **March 31, 2024**, and **March 31, 2025**, the company reported **NIL revenue from operations** and **no operating costs**. * **Revenue Drivers:** Profitability is currently sustained through **Other Income**, which totaled **Rs. 237.40 Lacs** in **FY 2024-25**. This income is primarily derived from interest recovered on loans provided to related parties. * **Asset Composition:** The company maintains a base of **Property, Plant and Equipment (PPE)** but holds **no intangible assets** and **no external investments** as of **March 31, 2025**. * **Inventory & Efficiency:** While active trading is minimal, management conducts physical verification of inventory at reasonable intervals. Due to the lack of operational turnover, standard efficiency ratios are currently non-applicable. --- ### **Financial Performance and Capital Structure** Despite the absence of core operational revenue, Haria Apparels has maintained a consistent net profit margin through disciplined cost management and a lean workforce. #### **Three-Year Financial Summary** | Particulars (Rs. in Lacs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | Revenue from Operations | **Nil** | **Nil** | **Nil** | | Other Income | **237.40** | **242.50** | **233.15** | | Net Profit | **83.65** | **89.24** | **117.00** | | Paid-up Equity Capital | **1,528.98** | **1,528.98** | **1,528.98** | #### **Debt and Gearing** The company has aggressively reduced its interest-bearing liabilities. Variable financial borrowings decreased from **Rs. 81.78 Lacs** in 2023 to **Rs. 13.10 Lacs** by March 2025. * **Secured Debt:** Historically comprised a **Term Loan** from **IDBI Bank** (secured by GIDC Vapi property at **9.95% - 10.15%**) and vehicle loans from **HDFC** and **ICICI Bank**. * **Repayment Track Record:** The company reports **no defaults** on loan installments or interest. * **Gearing Ratio:** As of March 31, 2023, the **Adjusted Net Debt** stood at **Rs. 128.41 Lacs** against **Total Equity** of **Rs. 439.92 Lacs**. --- ### **Inter-Corporate Lending and Group Synergies** A central pillar of the current business strategy is providing unsecured financial support to related parties. These transactions are conducted on an **Arm’s Length Basis** and reviewed quarterly by the **Audit Committee**. #### **Loan Portfolio (as of March 31, 2025)** | Loan Particulars | Value (in Lacs) | | :--- | :--- | | Aggregate amount granted during **FY 2024-25** | **26.5** | | Balance outstanding (Related parties excluding promoters) | **792.56** | | Loans without specified repayment terms | **100%** | | Overdue amount (>90 days) | **Nil** | While principal repayment terms are not strictly stipulated, the company recovers **yearly interest**, which constitutes the bulk of its current income. --- ### **Leadership and Governance Framework** The company is undergoing a leadership transition designed to ensure long-term stability and regulatory alignment with the **Companies Act, 2013** and **SEBI (LODR) Regulations, 2015**. #### **Key Management Personnel (Effective Sep 30, 2024)** The following appointments were made for a **5-year tenure**: * **Mr. Bimal Haria (Managing Director):** Age **49**, **B.B.A.** graduate. He brings cross-entity experience from directorships in **Haria Exports Limited** and **Haria Investments Pvt Ltd**. * **Mr. Rajesh Parmar (Executive Director & CFO):** Appointed to oversee financial strategy and leverage extensive industry experience. **Board Composition:** The Board consists of **5 Directors**: **2 Executive**, **1 Non-Executive**, and **2 Independent Directors**. This structure is intended to provide robust oversight during the company's current transitional phase. --- ### **Risk Management and Regulatory Compliance** Haria Apparels operates under a formal **Risk Management Policy** overseen by the **Audit Committee**. * **Credit Risk:** Managed via a lifetime **Expected Credit Loss (ECL)** model. As of March 2023, the provision for expected loss was **Rs. 1,019.41 Lacs**. * **Market & Currency Risk:** The company has **zero foreign currency exposure**, eliminating exchange rate volatility. Market price risk is mitigated by a lack of investments in debt mutual funds or volatile securities. * **Liquidity Risk:** The company maintains sufficient **Cash and Cash Equivalents** to meet obligations. However, the **Current Ratio** has recently faced pressure due to an increase in **short-term borrowings** and current maturities of long-term debt. * **Statutory Compliance Issues:** * **TDS Delays:** There have been **considerable delays** in depositing **Tax Deducted at Source (TDS)** in several instances. * **Provident Fund Contingency:** Following a **2019 Supreme Court ruling** on "Basic Wages," the company has not yet quantified potential past liabilities for PF contributions; the impact remains **unascertainable**. * **Title Deeds:** Immovable properties are held in the company’s name, with minor exceptions disclosed in financial notes. --- ### **Strategic Outlook** The company’s current trajectory is focused on **Leadership Stability** and **Group Synergy**. By securing a fixed 5-year term for its top-tier management, Haria Apparels aims to maintain a steady financial position through its related-party lending and asset management while exploring potential avenues for operational revival within the **Fabrics & Garment** sector.