Notes to Accounts of Haria Apparels Ltd.

Mar 31, 2024

2.12 PROVISIONS AND CONTINGENT LIABILITIES
a) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to

settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company
expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement
is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating
to a provision is presented in the Statement of Profit and Loss net of any reimbursement. Provisions are not
recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The increase in the provision due to the passage of time is recognised as
interest expense.

b) Contingent Liability

Contingent liabilities are not provided for and if material, are disclosed by way of notes to accounts. Contingent
Liability is disclosed in the case of:

i. A present obligation arising from the past events, when it is not probable that an outflow of resources
will be required to settle the obligation;

ii. A present obligation arising from the past events, when no reliable estimate is possible;

iii. A possible obligation arising from the past events, unless the probability of outflow of resources is
remote.

2.13 EARNINGPER SHARE

a) Basic Earnings Per Share

Basic Earnings Per Share is calculated by dividing the profit attributable to owners of the Company by the
weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining
the company’s earnings per share is the net profit for the period after deducting preference dividends, if any,
and any attributable distribution tax thereto for the period.

b) Diluted Earnings Per Share

Diluted Earnings Per Share adjusts the figures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financing costs associated with dilutive potential
equity shares and the weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

2.14 CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents comprise cash and deposits with banks. The Company considers all highly liquid
investments with a remaining maturity at the date of purchase of three months or less and that are readily
convertible to known of cash to be cash equivalents.

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions and other short term, highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.

2.15 STATEMENT OF CASH FLOWS

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing Cash Flows. The cash flows
from operating, investing and financing activities of the Company are segregated.

2.16 DIVIDEND

The Company recognises a liability for dividends to equity holders of the Company when the dividend is
authorised and the dividend is no longer at the discretion of the Company. As per the corporate laws in India,
a dividend is authorised when it is approved by the shareholders. A corresponding amount is recognised
directly in equity.

2.17 ROUNDING OFF

All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupees,
unless otherwise stated.

2.18 EVENTS OCCURINGAFTERTHE REPORTINGDATE

Adjusting events (that provides evidence of condition that existed at the balance sheet date) occurring after
the balance sheet date are recognized in the financial statements. Material non adjusting events (that are
inductive of conditions that arose subsequent to the balance sheet date) occurring after the balance sheet
date that represents material change and commitment affecting the financial position are disclosed in the
Directors’ Report.

2.19 EXCEPTIONAL ITEMS

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary
activities of the Company is such that its disclosure improves the understanding of the performance of the
Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes
accompanying to the financial statements.

2.20 OPERATING CYCLE

All assets and liabilities have been classified as current or non-current as per each Company’s normal
operating cycle and other criteria set out in the Schedule III to the Act.

2.21 SEGMENT REPORTING

Operating segments are those components of the business whose operating results are regularly reviewed
by the chief operating decision making body in the Company to make decisions for performance assessment
and resource allocation.

The reporting of segment information is the same as provided to the management for the purpose of the
performance assessment and resource allocation to the segments.

2.22 LEASES

The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use
the asset or assets, even if that right is not explicitly specified in an arrangement.

a) Company as a Lessee

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers
substantially all the risks and rewards incidental to ownership to the Company is classified as a finance
lease.

Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased
property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned
between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are recognised in finance costs in the Statement of Profit
and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in
accordance with the Company’s general policy on the borrowing costs. Contingent rentals are recognised as
expenses in the periods in which they are incurred.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty
that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter
of the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight-line
basis over the lease term.

b) Company as a Lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an
asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line
basis over the term of the relevant lease.

Leases are classified as Finance leases when substantially all of the risks and rewards of ownership transfer
from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables
at the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as
to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

2.23 RECENTACCOUNTINGPRONOUNCEMENTS

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards.
There is no such notification which would have been applicable from 1 April, 2024.

The Company''s objective for Capital Management is to maximise shareholder value, safeguard business continuity, and
support the growth of the Company. Capital includes, Equity Capital, Securities Premium and other reserves and surplus
attributable to the equity shareholders of the Company. The Company determines the capital requirement based on
annual operating plans and long term and strategic investment and capital expenditure plans. The funding requirements
are met through a mix of equity, operating cash flows generated and debt. The operating management, supervised by the
Board of Directors of the Company regularly monitors its key gearing ratios and other financials parameters and takes
corrective actions wherever necessary. The relevant quantitative information on the aforesaid parameters are disclosed
in these financial statements.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The
Company’s financial risk management policy is set by the managing board. The details of different types of risk and
management policy to address these risks are listed below:

(a) Market Risk:-

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the
price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest
rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive
instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and
deposits , foreign currency receivables, payables and loans and borrowings. The objective of market risk management
is to avoid excessive expsoure in our foreign currency revenues and costs.

(a) (i) Market Risk - Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because
of changes in market interest rates. The company’s exposure to the risk of changes in market interest rates primarily
to the Company’s borrowings, both short term and long term obligations with floating interest rates.

The Company is also exposed to interest rate risk on its financial assets that include fixed deposits since all
these are carried at amortised csot there is no significant interest rate risks pertaining to these deposits.

Fair value sensitivity analysis for fixed rate instruments

The Company doesn’t account for any fixed rate financial assets or financial liabilities at fair value through
profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable rate instruments

A reasonably possible change of 100 basis points in interest rate would have resulted in variation in the interest
expense for the company by the amounts indicated in the table below. Given that the company capitalises
interest to the cost of inventory to the extent permissible, the amounts indicated below may have an impact on
reported profits over the life cycle of projects to which such interest is capitalised. This calculation also
assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures
outstanding as at that date. The year end balances are not necessarily representative of the average debt
outstanding during the period.

(a) (iii) Market Risk - Currency Risk

The fluctuation in foreign currency exchange rates may have a potential impact on the statement of profit and
loss and equity, where any transaction references more than one currency or where assets/liabilities are
denominated in a currency other than the functional currency of the Company. The company does not has any
asset or liability in the foreign currency. in view of this it is not susceptible to market currency risk arising from
fluctuation in foreign currency exchange rates.

(b) Credit Risk

Credit Risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Company’s receivables from customers. The carrying
amount of financial assets represents the maximum credit exposure.

Trade Receivables

The Company has established a credit policy under which each new customer is analysed individually for
creditworthiness before the payment and delivery terms and conditions are offered. The Company’s review includes
external ratings, if they are available, financial statements, industry information, business intelligence and in some
cases bank references.

Trade Receivables of the Company are typically unsecured ,except to the extent of the security deposits received
from the customers or financial guarantees provided by the market organizers in the business. Credit Risk is managed
through credit approvals and periodic monitoring of the creditworthiness of customers to which the Company
grants credit terms in the normal course of business. The Company performs ongoing credit evaluations of its
customers’ financial condition and monitors the creditworthiness of its customers to which it grants credit terms in
the normal course of business. The Company has no concentration of Credit Risk as the customer base is
geographically distributed in India.

Expected credit loss for trade receivable:

The allowance for impairment of Trade receivables is created to the extent and as and when required, based upon the
expected collectability of accounts receivables. On account of adoption of Ind AS 109, the Company uses lifetime
Expected Credit Loss (ECL) model for assessing the impariment loss. For this purpose, the Company uses a provision
matrix to compute the expected credit loss amount for trade receivables. Loss rates are based on actual credit loss
experience and past trends. The provision matrix takes into account external and internal credit risk factors and
historical experience / current facts available in relation to defaults and delays in collection thereof.

Other Financial Assets

The company maintains its Cash and Cash equivalents and Bank deposits with banks having good reputation, good
past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

Expected credit loss on financial assets other than trade receivable:

With regards to all financial assets with contractual cash flows other than trade receivable, management believes
these to be high quality assets with negligible credit risk. The management believes that the parties from whom
these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is
negligible and accordingly no provision for expected credit loss has been provided on such financial assets. Break
up of financial assets other than trade receivables have been disclosed on balance sheet.

The Company’s maximum exposure to credit risk as at 31st March, 2022 and 31st March, 2021 is the carrying value
of each class of financial assets.

(c) Liquidity Risk

Liquidity Risk is the risk that the Company will face in meeting its obligation associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company’s approach in managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or riskking damage to the Company’s reputation. Any
short term surplus cash generated, over and above the amount required for working capital management and other
operational requirements is retained as Cash and Cash Equivalents (to the extent required).

Exposure to Liquidity Risk

The following table shows the maturity analysis of the Company’s Financial Liabilities based on contractually
agreed undiscounted cash flows along with its carrying value as at the Balance Sheet Date.

Notes

1 Current ratio has detoriated on account of increase in short term borrowings (including current maturities of long
term debt)

2 Return on equity ratio has detoriated on account of decrease in profitability of the company during the year.

* Said ratios have not been calculated since company does not have any operating cost

** Said ratios have been not been calculated since company revenue from operations is NIL

# Company does not have any investment.

37. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker regularly monitors and reviews the operating results of the
whole Company as one segment i.e. “Fabrics & Garment”. Thus, as defined in Ind AS 108 ''Operating Segments'', the
Company’s entire business falls under this one operational segment and hence the necessary information has
already been disclosed in the balance sheet and the statement of profit and loss. Further, the entire business of the
Company is within India, hence there is no geographical segment.

As per our record attached For and on behalf of the Board of Directors

For RAK CHAMPS & CO LLP For HARIAAPPARELS LTD.

CHARTERED ACCOUNTANTS
Firm Reg. No. 131094W / W100083

BIMAL HARIA UTSAV MARU

Director Director

DIN : 00585299 DIN : 07752233

RAMANATHA SHETTY

Partner SURAJ SHAH

Membership No. 218600 Company Secretary

UDIN : 24218600BKBWHD3171 ACS-52977

Mumbai, 30th May, 2024 Mumbai, 30th May, 2024

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Mar 31, 2015

Haria Apparels Limited ('the Company') was incorporated on 1st February, 2011 under The Companies Act, 1956. The company is in the Business of manufacturing of Garments and trading of Goods.

1. SHARE CAPITAL

Details of Shareholding as at March 31, 2015

i. Equity Shares held by various entities:

27,69,399(18.29%) {PY: 27,69,399 (18.29%)} Equity Shares of Rs.10/- each held by Associate Company Vilco Pharma Pvt. Ltd.

2. Shareholders holding more than 5% of Equity Shares:

30,20,496(19.75%){PY: 30,20,496(19.75%)} Equity Shares of Rs.10/- each held by Mr. Manish K. Haria 9,27,778(6.07%){PY: 9,27,778 (6.07%)} Equity Shares of Rs.10/- each held by Mr. Kantilal Haria

c. Each Equity Share is entitled to one voting right only.

d. In the event of liquidation of the company, the holders of equity shares will be entitled to receive assets remaining, and distribution of all preferential amounts.

Additional Information to Secured / Unsecured Long Term Borrowings:

3. Term Loan from Punjab National Bank

a. Loan from IDBI Bank was secured by plot nos. 279 at GIDC Vapi Industrial Estate, Vapi Taluka: Pardi, District: Valsad, Gujarat @ 12.25% per annum Interest. The loan as at 31st March, 2015 is repayable in 48 equal monthly installments from May 2015 of Rs. 7,80,474/- each.

b. There was no default in repayment of the loans.

4. Car Loan from HDFC Bank

a. Loan from HDFC Bank is will be by 14-monthly instalments as on 31st March of Rs.38,750/- at interest rate of 10.81% p.a, secured by way of hypothecation of Car as at March 31, 2015

b. The loans are regularly paid as per the repayment schedule and there is no default in repayment of the loans.

5. Loans and advances from related parties

a. Long Term loans from related parties are not going to be recalled before the end of 2 years.

b. There was no default in repayment of the loans.

6. Inter Corporate Deposits (Related & Others)

a. Inter Corporate Deposits are not going to be recalled before the end of 2 years.

b. There was no default in repayment of the loans.

Additional Information to Secured / Unsecured ShortTerm Borrowings:

7. Term Loan from Bajaj Finance

a. Loan from bajaj finance is given for 12 months at interest rate of 12.25%,secured by pledge of 11,260 Shares of Asian Paints, Shares are in name of Mr.Bimal Haria. Loan is guranateed by Mr.Bimal Haria.The loan of Rs. 35,50,000/- will be repaid after 12 months

8) CONTINGENT LIABILITIES AND COMMITMENTS

PARTICULARS 2014-2015 2013-2014

(I) Contingent Liabilities

(A) Claims against the company/ disputed NIL NIL liabilities not acknowledged as debts.

(B) Guarantees

(i) Guarantees to Banks and Financial 15,35,00,000 12,20,00,000 Institutions against credit facility extended to third parties.

(II) Capital Commitments

Estimated amount of contracts remainin g NIL NIL to be executed on Capital Account and not provided for (net of advances)

9. EMPLOYEE BENEFITS :

The Company has not completed 5 years of continuous business and there are no permanent employees in the company, hence the employees benefits under the payment of Gratuity Act are not applicable to the company during the year under consideration.

10. There is no Foreign Exchange Gain/Loss in the year under consideration.

11. SEGMENT REPORTING :

Segment reporting does not apply to the company, hence reporting under this clause is not applicable

Note: Related Parties Relationship is as identified by the company and relied upon by the auditors.

Figures in the brackets represent previous year figures.

12. LEASES

Operating Lease Payment in respect of certain office premises and factory premises on cancellable operating lease which are recognised into the Statement of Profit and Loss:

13. The trade receivable of Rs. 12,12,47,191/- are overdue and outstanding since last three years. The management was advised to make provision on these doubtful debts.However the management is confident of receiving the sum and hence no provisionhas been made accordingly.

14. The balance confirmations have been sent to Sundry Debtors, Creditors, Deposits and Loans & Advances Parties, due adjustment if any shall be done on receipt of the confirmation. Management is confident of receiving all the sums due. The provisions for all known liabilities and for depreciation is adequate and not in excess of the amounts reasonably necessary.

15. In the opinion of the board the current assets, loans and advances are approximately of the values stated in the Balance Sheet, realized in the ordinary course of business.

16.In the absence of declaration from sundry creditors / suppliers with regard to their status as SSI Undertaking wherever appropriate, it is not possible to determine the amount, payable to sundry creditors falling within the meaning of SSI Undertaking.

17. Disclosure under Micro, Small and Medium Enterprises development Act, 2006. The Company has not received any memorandum ( as required to be filed by the suppliers with notified authority under the Micro, Small and Medium Enterprises development Act, 2006) claiming their status as micro, small and medium enterprises. Consequently the amount paid/payable to these parties during the period under review is NIL.

18. Previous Year Figures have been regrouped & reclassified/rearranged wherever necessary.

As per Report of the even date attached.

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Mar 31, 2014

GENERAL INFORMATION :

Haria Apparels Limited (''the Company'') was incorporated on 1st February, 2011 under The Companies Act, 1956. The company is in the Business of manufacturing of Garments and trading of Goods.

Additional Information to Secured / Unsecured Long Term Borrowings:

1.1 Term Loan from Punjab National Bank

a. "Loan from Punjab National Bank was secured by plot nos. 278/279/345/348 at GIDC Vapi Industrial Estate, Vapi Taluka: Pardi, District: Valsad, Gujarat @ 13.00% per annum Interest"The loan has been completely repaid in the current year.""

b. There was no default in repayment of the loans.

1.2 Car Loan from HDFC Bank

a. Loan from HDFC Bank is given on 26-monthly instalments of Rs.38,750/- at interest rate of 10.81% p.a, secured by way of hypothecation of Car as at March 31, 2014.

b. The loans are regularly paid as per the repayment schedule and there is no default in repayment of the loans.

1.3 Loans and advances from related parties

a. Long Term loans from related parties are not going to be recalled before the end of 2 years.

b. There was no default in repayment of the loans.

1.4 Inter Corporate Deposits

a. Inter Corporate Deposits are not going to be recalled before the end of 2 years.

b. There was no default in repayment of the loans.

Additional Information to Secured / Unsecured ShortTerm Borrowings:

2.1 Term Loan from Bajaj Finance

a. Loan from bajaj finance is given for 12 months at interest rate of 12.25%,secured by pledge of 86,260 Shares of Asian Paints, Shares are in name of Mr.Bimal Haria. Loan is guranateed by Mr.Bimal Haria.The loan of Rs. 2,65,00,000/- will be repaid after 12 months

3 CONTINGENT LIABILITIES & COMMITMENTS: (Amount in Rs.)

Particulars March 31, 2014 March 31, 2013

(I) Contingent Liabilities

(a) Claims against the company/ disputed liabilities not acknowledged as debts.

(i) Income Tax (FY:1998-1999, 1999-2000,2000-2001) NIL 1,54,00,000

(b) Guarantees

(i) Guarantees to banks and Financial Institutions against credit facility extended to third parties. 12,20,00,000 -

(II) Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) NIL 20,00,00,000

4 EMPLOYEE BENEFITS:

The Company has not completed 5 years of continuous business and there are no permanent employees in the company, hence the employees benefits under the payment of Gratuity Act are not applicable to the company during the year under consideration.

5 There is no Foreign Exchange Gain/Loss in the year under consideration.

6 SEGMENT REPORTING :

Segment reporting does not apply to the company, hence reporting under this clause is not applicable.

6 The trade receivable of Rs. 119,884,477/- are overdue and outstanding since last three years. The management was advised to make provision on these doubtful debts.However the management is confident of receiving the sum and hence no provisionhas been made accordingly.

7 The balance confirmations have been sent to Sundry Debtors, Creditors, Deposits and Loans & Advances Parties, due adjustment if any shall be done on receipt of the confirmation. Management is confident of receiving all the sums due. The provisions for all known liabilities and for depreciation is adequate and not in excess of the amounts reasonably necessary.

8 In the opinion of the board the current assets, loans and advances are approximately of the values stated in the Balance Sheet, realized in the ordinary course of business.

9 In the absence of declaration from sundry creditors / suppliers with regard to their status as SSI Undertaking wherever appropriate, it is not possible to determine the amount, payable to sundry creditors falling within the meaning of SSI Undertaking.

10 Disclosure under Micro, Small and Medium Enterprises development Act, 2006. The Company has not received any memorandum ( as required to be filed by the suppliers with notified authority under the Micro, Small and Medium Enterprises development Act, 2006) claiming their status as micro, small and medium enterprises. Conse- quently the amount paid/payable to these parties during the period under review is NIL

11 Previous Year Figures have been regrouped & reclassified/rearranged wherever necessary. As per Report of the even date attached.