Notes to Accounts of Lovable Lingerie Ltd.

Mar 31, 2024

Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each reporting date and adjusted to reflect the current best estimate.

A present obligation that arises from past events whether it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent Liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

Contingent liabilities are not recognized but are disclosed and contingent assets are neither recognized nor disclosed, in the financial statements.

Business Segments

More than 90% of Company operations are only in one segment i.e. dealing in hosiery garment products. This in the context of Indian Accounting Standard 108 of Segment Reporting as specified in the Companies (Indian Accounting Standards ) Rules 2015 are considered to constitute one single primary segment. Further, there is no reportable secondary segment i.e. geographical segment.

Earnings Per Share

Basic Earnings per Share (“EPS”) is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the period. The weighted average number of shares is adjusted for issue of bonus share in compliance with Indian Accounting Standard (INDAS 33) - Earnings per Share.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of dilutive potential equity shares.

Exemption from Retrospective Application of Ind AS Fair Value as Deemed Cost

The company has elected to continue with the carrying value for all of its property, plant and equipment and Intangible Assets as recognised in the Financial Statements as at the date of transition measured as per the previous GAAP and use that as its deemed cost as at date of transition.

Leases

The Company, at the inception of a contract, assesses the contract as, or containing, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether the contract involves the use of an identified asset, the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and the Companyhas the right to direct the use of the asset.

Company as a lessee

The Company recognises a ROU and a corresponding lease liability with respect to all lease agreements in which it is the lessee in the Balance Sheet. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the incremental borrowing rate (as the rate implicit in the lease cannot be readily determined). Lease liabilities include the net present value of fixed payments (including any in-substance fixed payments) and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. Subsequently, the lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments including or when the lease contract is modified and the lease modification is not accounted for as a separate lease. The corresponding adjustment is made to the carrying amount of the ROU, or is recorded in profit or loss if the carrying amount of the related ROU has been reduced to zero and there is a further reduction in the measurement of the lease liability. ROU are measured at cost, comprising the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date and any initial direct costs less any lease incentives received. Subsequent to initial recognition, ROU are stated at cost less accumulated depreciation and any impairment losses and adjusted for certain remeasurements of the lease liability. Depreciation is computed using the straight-line method from the commencement date to the end of the useful life of the underlying asset or the end of the lease term, whichever is shorter. The estimated useful lives of ROU are determined on the same basis as those of the underlying asset. In the Balance Sheet, the ROU and lease liabilities are presented separately. In the Statement of Profit and Loss, interest expense on lease liabilities are presented separately from the depreciation charge for the ROU. Interest expense on the lease liability is a component of finance costs, which are presented separately in the Statement of Profit or Loss. In the statement of cash flows, cash payments for the principal portion of lease payments and the interest portion of lease liability are presented as financing activities, and short-term lease payments and payments for leases of low-value assets and variable lease payments not included in the measurement of the lease liability, if any, as operating activities.

When a contract includes lease and non-lease components, the Company allocates the consideration in the contract on the basis of the relative stand-alone prices of each lease component and the aggregate stand-alone price of the nonlease components.

Short-term leases and leases of low-value assets

The Company has elected not to recognise ROU and lease liabilities for short term leases that have a lease term of twelve months or less and leases of low value assets. The Company recognises lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Companyas a lessor

Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Amounts due from lessees under a finance lease are recognised as receivables at an amount equal to the net investment in the leased assets. Finance lease income is allocated to the periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the finance lease.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

When a contract includes lease and non-lease components, the Company applies Ind AS 115 ‘Revenue from Contracts with Customers'' to allocate the consideration under the contract to each component.

The Company has not entererd into any transactions with strike off companies.

Note 28.8 Registration of Charges or Satisfaction With Registrar of Companies (ROC)

There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

Note 28.9 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

Note 28.10 Utilization of Borrowed Funds and Share Premium

(a) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:-

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Company has utilised the borrowings from banks and financial institutions for the specific purpose for which it was taken as at March 31,2024.

As per our report of even date attached For and on behalf of the Board of Directors

Sd/- Sd/-

For DMKH & Co. Mr. L. Vinay Reddy Mrs. Taruna Vinay Reddy

Chartered Accountants Managing Director Director

FRN 116886W (DIN : 00202619) (DIN : 02787135)

Sd/- Sd/- Sd/-

Mr. Manish Kankani Mr. Rajashekara T Mr. Rohit Jadhav

Partner Chief Financial Officer Company Secretary

Membership No. 158020 (M. No. : ACS 68132)

Place : Mumbai Place : Mumbai

Date : 5/28/2024 Date : 5/28/2024

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Mar 31, 2023

Terms/Rights Attached to Equity Shares

The Company has Equity Shares having a par value of ? 10/- each at the Balance Sheet Date. Each holder of Ordinary Shares, is entitled to one vote per member in case of voting by show of hands and one vote per Ordinary Shares held in case of voting by poll/ballot. Each holder of Equity Share is also entitled to normal dividend (including interim dividend, if any) as may declared by the company.

The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the Annual General Meeting.

In the event of liquidation of company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distributions will be in proportion to the number of equity shares held by shareholder.

The Company does not have any holding Company.

Note: 28.5. Information on related party as required by Accounting Standard (IndAS-24) on Related Party Disclosures for the year ended 31³¹ Mar, 2023

In accordance with the requirement of Accounting Standard (IndAS-24) Related Party Disclosures, the names of the related parties where control exits and/or with whome transactions have taken place during the year and description of relationships, as identified and certified by the management are :-

For current borrowings, the carrying amounts approximates fair value due to the short maturity of these instruments

The financial instruments are categorised into three levels based on the inputs used to arrive at fair value measurements as described below

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3: Inputs based on unobservable market data.

Valuation Methodology

All financial instruments are initially recognised and subsequently re-measured at fair value as described below:

a) The fair value of investment in quoted Equity Shares, Bonds, Government Securities and Mutual Funds is measured at quoted price or NAV.

b) The fair value for level 3 instruments is valued using inputs based on information about market participants assumptions and other data that are available.

INVESTOR SAFEGUARDS

In order to serve you better and prevent risks associated with dealing in securities, we request you to follow the general safeguards as detailed hereunder:

Demat / Exchange

With the aim of curbing fraud and manipulation risk in physical transfer of securities, SEBI has notified the SEBI (Listing Obligations and Disclosure Requirements) (Fourth Amendment) Regulations, 2018 on June 8, 2018 to permit transfer of listed securities only in the dematerialized form with a depository. In view of the above and the inherent benefits of holding shares in electronic form, we urge the shareholders holding shares in physical form to opt for dematerialization.

Registration of Nomination and NECS Mandate

Members holding shares in physical form are requested to register Nomination in their folio(s) by sending duly completed Nomination Form to the Registrar of the Company.

Members who have not registered their NECS Mandate are requested to send their NECS Mandate Form to the Registrar of the Company or to their DP, as the case may be. For any change in bank particulars either due to banker having migrated their operations to core banking solutions or merged with another bank, Members are requested to register a fresh NECS Mandate with the revised bank particulars. Please register your NECS Mandate for timely receipt of dividend payments and to avoid fraudulent encashment of dividend warrants.

Unclaimed Dividend

Details of unclaimed dividends are available on the Investor Centre page on the website of the Company www.lovableindia. in. Those Members whose dividends remain unclaimed are requested to check the details of unclaimed dividends on the website and send their requests to the Registrar / Investor Service Department of the Company for issuance of fresh Demand Drafts.

E-Communication

To receive Company related information and communication promptly, Members are requested to register / update their e-mail addresses with the Company/ RTA. Members who hold shares in demat form can request their DP to update the e-mail address in their records. The Companies Act, 2013 and Rules framed thereunder governing e-communication have been notified and the Company shall be sending notice, documents, financial statements, etc. through electronic mode to the Members who have provided their email address to the Company or Depository Participants. Members may send request for hard copy of such notices, documents, financial statements, etc. to the Registrar / Investor Service Department of the Company.

Consolidation of Multiple Folios

Members are requested to consolidate their shareholdings under multiple folios, to save themselves from the burden of receiving multiple communications as also to facilitate one point tracking of all corporate benefits on their shares.

PAN Requirement for Transfer of Shares in Physical Form

SEBI has mandated submission of Permanent Account Number (PAN) for securities market transactions and off market / private transactions involving transfer of shares of listed companies in physical form. Therefore, it shall be mandatory for the transferee(s) to furnish a copy of their PAN card to the Registrar / Investor Service Department of the Company for registration of such transfers. Members / Investors are, therefore, requested to take note of the same and submit their PAN card copy to the Registrar / Investor Service Department of the Company.

General Safeguards

• Please send Share Certificate(s) and high value dividend warrants / cheques / demand drafts by registered post or courier so as to avoid loss of document in transit.

• Exercise due diligence and notify any change in address, stay abroad or demise of any shareholder as soon as possible to the Company or DP, as the case may be.

• Deal only with SEBI registered intermediaries and obtain a valid Contract Note / Confirmation Memo from the broker / sub-broker, within 24 hours of execution of the trade.

• Do not disclose your Folio Nos. / DP ID and Client ID to any unknown person.

• Do not hand over signed blank transfer deeds, delivery instruction slips to any unknown person.

• Do not leave your demat account dormant for long.

• Obtain periodic statement of holdings from the concerned DP and verify the holdings periodically.

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Mar 31, 2018

Note: 26.9. Information on related party as required by Indian Accounting Standard (Ind AS-24) on Related Party Disclosures for the year ended 31st March 2018

In accordance with the requirement of Accounting Standard (Ind AS-24) Related Party Disclosures, the names of the related parties where control exits and/or with whome transactions have taken place during the year and description of relationships, as identified and certified by the management are :-

List of Related Parties :-

A) Key Management Personnel :

L Vinay Reddy, Chairman and Managing Director L Jaipal Reddy, Whole Time Director R Govindarajan, Chief Financial Officer Divya Shirmali, Company Secretary

B) Other Related Parties

Entities where Key Management Personnel exercises significant influence/ Group Companies : Tecknit Industries

Note: 26.10. Information on related party as required by Indian Accounting Standard (lndAS-24) on Related Party Disclosures for the year ended 31st March 2018

Particulars	For the year ended 31st March 2018	For the year ended 31st March 2017
1. Rent Paid
Tecknit Industries	94,050	1,01,205
2. Remuneration Paid	35,25,000	44,12,500
Mr. L Vinay Reddy	17,25,000	23,62,500
Mr. L Jaipal Reddy	18,00,000	20,50,000
3. Sitting Fees - Directors	3,25,800	3,28,500
4. Dividend Paid - Promoters	1,12,94,826	-
5. Buyback of shares -Promoters	46,13,85,750	-

Note: 26.11: Financial risk management objectives and policies

The Company''s activities expose it to the following risks:

a) Credit risk

b) Liquidity risk

c) Market risk

a) Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities including deposits with banks, investments, and other financial instruments.

i) Trade receivables

Customer credit risk is managed by the Company subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivable disclosed in note 7.

ii) Financial instrument and cash deposit

Credit risk is limited as the Company generally invest in deposits with banks. Investments primarily include investments in liquid mutual fund units. Counterparty credit limits are reviewed by the Company periodically and the limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/internal accruals.

c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk include borrowings.trade receivable and trade payable.

Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. The Company does not have significant debt obligations with floating interest rates, hence, is not exposed to any significant interest rate risk.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company does not have significant foreign currency exposure and hence, is not exposed to any significant foreign currency risk.

Note: 26.12: Segment information

For management purposes, the Company has one business unit based on its products and has one reportable segment. The management monitors the operating results of its single business unit for the purpose of making decisions about resource allocation and performance assessment.

Note: 26.13: Financial assets measured at fair value:

Financial Assets	As at 31st March 2018	As at 31st March 2017	As at 1st April 2016
Investments	44,20,43,838	92,64,64,630	79,75,66,259

The carrying value of trade receivables, trade payables, cash and cash equivalents , borrowings and other current financial assets and liabilities approximate their fair values largely due to the short-term maturities.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The fair values of the investments in mutual funds are derived from quoted market prices in active markets.

Note: 26.14: Capital management

The Company''s objective is to maintain a strong capital base to ensure sustained growth in business. The Capital Management focuses to maintain an optimal structure that balances growth and maximizes shareholder value.

The Company is predominantly equity financed. Further, the Company has sufficient cash, cash equivalents, current investments and financial assets which are liquid to meet the debts.

Note: 26.15: Amount payable to Micro Small Medium Enterprises

Trade payables as at 31st March 2018 include Rs. 1,45,32,928/- (Previous year Rs. 1,30,30,447/-) , amount due to Micro Small Medium Enterprises. However, those enterprises are ascertained in cases where they are registered in that category.

Note: 26.16: Corporate Social Responsibility

As per Companies Act, 2013, all companies having networth of Rs. 500 crores or more, turnover of Rs. 1000 crores or more or net profit of Rs 5 Crores or more during any financial year are required to spend at least 2% of average net profit of the Company''s three immediately preceding financial years. Accordingly, the Company was required to spend Rs. 51.41 lakhs towards CSR activities in financial year 2017-18. Expenditure related to Corporate Social Responsibility incurred as per Section 135 of Companies Act, 2013 read with Schedule VII thereof: Rs. 110.52 lakhs.

Note: 26.17: Exceptional Item

The extraordinery Item of Rs. 14,02,58,693/- refers to the expenses incurred in connection with a fire accident in one our units situated at 18/2, Off. Kanakapura Road, Konanakunte cross, Bangalore - 560062 on 12th November 2017. The total loss on account of fire includes Loss of Inventories such as Raw materials, Work in progress, Finished goods etc, Loss of fixed assets including Plant and machinery, furniture and fixtures, computers, office equipments etc and settlement to employees.

Note: 27.1: First time adoption

These financial statements, for the year ended 31st March 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with generally accepted accounting principles in India (Previous GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on or after 31st March 2018, together with the comparative period data as at and for the year ended 31st March 2017, as described in the summary of significant accounting policies.

In preparing these financial statements, the Company''s opening statement of financial position was prepared as at 1st April 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Previous GAAP financial statements as at 1st April 2016 and the financial statements as at and for the year ended 31st March 2017.

Estimates:

Ind AS 101 requires an entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS to be consistent with estimates made for the same date in accordance with Previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Note: 27.2: Exemptions applied on first time adoption of Ind AS 101

Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

1. Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their Previous GAAP carrying value.

Note: 27.3: First Time Ind AS adoption reconciliation

	Particulars	As at 1st April 2016	Effect of transition to Ind AS	As at 1st April 2016
		Previous GAAP		As per Ind AS
A	EQUITY AND LIABILITIES
1	Shareholders'' Funds
	(a) Share Capital	16,80,00,000		16,80,00,000
	(b) Reserves and Surplus	1,88,44,73,928	5,99,51,754	1,94,44,25,682
		2,05,24,73,928	5,99,51,754	2,11,24,25,682
2	Non-Current Liabilities
	(a) Long-term borrowings	2,21,38,889	-8,47,748	2,12,91,141
	(b) Deferred tax liabilities (net)	4,01,06,076	3,17,28,810	7,18,34,886
	(c) Other long-term liabilities
	(c) Long-term provisions	1,07,98,820		1,07,98,820
		7,30,43,785	3,08,81,062	10,39,24,847
3	Current Liabilities
	(a) Short-term borrowings
	(b) Trade payables	11,38,06,719		11,38,06,719
	(c) Other current liabilities	5,78,30,244	-7,60,722	5,70,69,522
	(d) Short-term provisions	4,29,12,427		4,29,12,427
		21,45,49,389	-7,60,722	21,37,88,667
	Total	2,34,00,67,102	9,00,72,094	2,43,01,39,196
B	ASSETS
1	Non-Current Assets
	(a) Fixed assets
	(i) Tangible assets	34,28,51,492		34,28,51,492
	(ii) Intangible assets	9,48,36,857		9,48,36,857
	(iii) Capital work-in-progress	3,91,44,164		3,91,44,164
		47,68,32,513		47,68,32,513
	(b) Non-current investments	70,74,94,164	9,00,72,094	79,75,66,258
	(c) Long-term loans and advances	1,56,41,291		1,56,41,291
	(d) Other non-current assets	28,28,625		28,28,625
		72,59,64,080	9,00,72,094	81,60,36,174

	Particulars	As at 1st April 2016	Effect of transition to Ind AS	As at 1st April 2016
		Previous GAAP		As per Ind AS
2	Current Assets
	(a) Inventories	63,92,08,975		63,92,08,975
	(b) Trade receivables	42,31,46,804		42,31,46,804
	(c) Cash and cash equivalents	3,57,67,071		3,57,67,071
	(d) Short-term loans and advances	3,44,11,005		3,44,11,005
	(e) Other current assets	47,36,654		47,36,654
		1,13,72,70,508		1,13,72,70,508
	Total	2,34,00,67,102	9,00,72,094	2,43,01,39,196
	See Significant Accounting Policies and Notes on Financial Statements 1 to 24

Note: 27.4: Reconciliation of assets and liabilities as previously reported under GAAP to IndAS

	Particulars	As at 31st March 2017	Effect of transition to Ind AS	As at 31st March 2017
		Previous GAAP		As per Ind AS
A	EQUITY AND LIABILITIES
1	Shareholders'' Funds
	(a) Share Capital	16,80,00,000	-	16,80,00,000
	(b) Reserves and Surplus	1,98,70,30,892	6,69,57,991	2,05,39,88,883
		2,15,50,30,892	6,69,57,991	2,22,19,88,883
2	Non-Current Liabilities
	(a) Long-term borrowings
	(b) Deferred tax liabilities (net)	4,34,24,385	3,25,63,455	7,59,87,840
	(c) Other long-term liabilities
	(c) Long-term provisions	1,00,24,020	-	1,00,24,020
		5,34,48,405	3,25,63,455	8,60,11,860
3	Current Liabilities
	(a) Short-term borrowings	12,49,73,556	-	12,49,73,556
	(b) Trade payables	9,71,75,566	-	9,71,75,566
	(c) Other current liabilities	6,50,39,546	-8,47,748	6,41,91,798
	(d) Short-term provisions	3,61,88,876	-	3,61,88,876
		32,33,77,543	-8,47,748	32,25,29,795
	Total	2,53,18,56,840	9,86,73,698	2,63,05,30,538
B	ASSETS
1	Non-Current Assets
	(a) Fixed assets
	(i) Tangible assets	37,63,84,470	-	37,63,84,470
	(ii) Intangible assets	8,10,54,950	-	8,10,54,950
	(iii) Capital work-in-progress	3,40,46,144	-	3,40,46,144
		49,14,85,564		49,14,85,564

	(b) Non-current investments	82,77,90,932	9,86,73,699	92,64,64,630
	(c) Long-term loans and advances	2,00,77,888	-	2,00,77,888
	(d) Other non-current assets	46,22,634	-	46,22,634
		85,24,91,454	9,86,73,699	95,11,65,152
2	Current Assets
	(a) Inventories	73,90,11,028	-	73,90,11,028
	(b) Trade receivables	39,27,60,278	-	39,27,60,278
	(c) Cash and cash equivalents	95,80,737	-	95,80,737
	(d) Short-term loans and advances	4,55,01,433	-	4,55,01,433
	(e) Other current assets	10,26,347	-	10,26,347
		1,18,78,79,823	-	1,18,78,79,823
	Total	2,53,18,56,840	9,86,73,699	2,63,05,30,539

Note: 27.5: Reconciliation of Profit and Loss for the year ended on 31st March 2017

	Particulars	For the period ended 31st March 2017	Effect of transition to Ind AS	For the period ended 31st March 2017
		Previous GAAP		Ind AS
A	INCOME
1	Revenue from operations (gross)	1,97,40,60,816		1,97,40,60,816
	Less: Excise duty
	Revenue from operations (net)	1,97,40,60,816		1,97,40,60,816
2	Other income	6,07,25,654	83,82,874	6,91,08,528
3	Total revenue (1 2)	2,03,47,86,470	83,82,874	2,04,31,69,344
4	EXPENSES
	(a) Cost of materials consumed	56,32,47,666		56,32,47,666
	(b) Purchases of stock-in-trade	52,23,91,796		52,23,91,796
	(c) Changes in inventories of finished goods,	(10,48,67,276)		(10,48,67,276)
	work-in-progress and stock-in-trade
	(d) Employee benefits expense	28,53,76,310	16,01,122	28,69,77,432
	(e) Finance costs	84,58,704	7,60,722	92,19,426
	(f) Depreciation and amortisation expense	3,39,55,919		3,39,55,919
	(g) Other expenses	55,40,93,956		55,40,93,956
	Total expenses	1,86,26,57,073	23,61,844	1,86,50,18,917
	Profit Before Tax	17,21,29,397	60,21,030	17,81,50,427
	Tax Expenses
	Current Tax	4,58,15,303	-	4,58,15,303
	Deferred Tax	35,37,040	2,95,690	38,32,730
	Profit for the year	12,27,77,053	57,25,340	12,85,02,393

	OTHER COMPREHENSIVE INCOME
i	Items that will not be reclassified to Statement of Profit or Loss			16,01,122
ii	Income Tax relating to Items that will not be reclassified to Statement of Profit or Loss			(3,20,224)
iii	Items that will be reclassified to Statement of Profit or Loss
iv	Income Tax relating to Items that will be reclassified to Statement of Profit or Loss
	Total			12,80,898
	Total Comprehensive Income	12,27,77,053	70,06,238	12,97,83,291

Note: 27.6: Footnotes to the reconciliation of equity as at 1 April 2016 and 31 March 2017 and profit and loss for the year ended 31 March 2017

1. Long Term Borrowings:

Under Previous GAAP, Long term borrowings were amortised as per equal quarterly instalments and Interest cost were expensed out in Profit & Loss account. Under Ind AS, Long term borrowings are revalued as per IRR method and amortised accordingly.

2. Financial Instruments:

Under Previous GAAP, Investments are valued at carrying cost, whereas under IndAs, Investments are valued at fair value , the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The fair values of the investments in mutual funds are derived from quoted market prices in active markets.

3. Deferred tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

The application of Ind AS approach has resulted in recognition of deferred tax on new temporary differences which was not required under Previous GAAP.

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.

4. Defined benefit liabilities

Under Previous GAAP, actuarial gains and losses were recognized in the statement of profit and loss.

Under Ind AS, the actuarial gains and losses form part of re-measurement of net defined benefit liability/asset which is recognized in other comprehensive income in the respective periods. Further, interest costs on actuarial valuation of gratuity has been reclassified to finance costs under IND AS.

5. Statement of cash flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows. Note: 28: Previous year figures:

Previous year figures have been regrouped / re-casted wherever considered necessary to make them comparable with those of the current year

As per our report of even date attached	For and on behalf of the Board of Directors
For DMKH & CO.	Mr. L Vinay Reddy	L Jaipal Reddy
Chartered Accountants	Managing Director	Whole Time Director
FRN 116886W	(DIN:00202619)	(DIN:01539678)
Durgesh Kumar Kabra	Ms. Divya Shrimali	Mr. R. Govindarajan
Partner	Company Secretary	Chief Financial Officer
Membership No.: 044075	(M.No. ACS45803)
Mumbai, May 28, 2018

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Mar 31, 2016

Note: 1. Information on related party as required by Accounting Standard (AS-18) on Related Party Disclosures for the year ended 31st Mar, 2016

In accordance with the requirement of Accounting Standard (AS 18) Related Party Disclosures, the names of relate parties where control exits and/or with whome transactions have taken place during the year description of relationships, as identified and certified by the management are

List of Related Parties

A) Key Management Personnel:

L Vinay Reddy, Chairman and Managing Director R Govindarajan, Chief Financial Officer DarshaSanghvi, Company Secretary

B) Other Related Parties

Entities where Key Management Personnel exercises significant influence/ Group Companies (with whom transactions were entered):

Anka Emterprises Private Limited Magnus marketing Tecknit Industries

Note: 2. Current Assets, Loans and Advances:

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of the business.

Note: 3. Amount payable to Micro SmallMedium Enterprises

Trade payables as at 31st March, 2016 include Rs. 2,32,24,491/- (Previous year Rs. 5,13,87,759/-), amount due to Micro Small Medium Enterprises. However, those enterprises are ascertained in cases where they are registered in that category.

Note: 4. Previous year figures:

Previous year figures have been regrouped / recasted wherever considered necessary to make them comparable, with those of the current year

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Mar 31, 2015

Note: 1.: Details of terms of repayment and security provided in respect of above term loan:

i) Repayable in 5 years including Moratorium of 6 months starting from 1st April 2013.

ii) Secured against exclusive charge on all fixed assets located at Singsandra, Bangalore including Plant & Machinery and Land & Building

iii) Company has pledged Mutual Funds of Rs. 22 crores in favour of bank. MF of Rs. 12 crores to be released post creation of above security. Remaining MF of Rs. 10 crores to be retained and will be released after one year with prior approval of Bank.

Note: 2. : The above long term borrowing from bank is guaranteed by following two directors: Mr. LVinay Reddy, Managing Director Mr. L. Jaipal Reddy, Director

Note: 3.: The above cash credit from bank is secured by following:

Primary Security : Hypothecation of raw material, stock in process, stores and spares, packing material, finished goods, books debts of the Company.

Collateral Security: Exclusive charge on all fixed assets located at Singsandra, Bangalore including Plant & Machinery and Land & Building

Note: 4.: The above long term borrowing from bank is guaranteed by following two directors:

Mr. L Vinay Reddy, Managing Director

Mr. L. Jaipal Reddy, Director

Note 5. Deferred Tax Assets / Liabilities

i) The Deferred Tax Liability for current year of Rs. 48,94,325/- (P.Yr. Rs. 76,59,096/-) is recognised in Profit and Loss A/c.

ii) Tax effect of significant temporary differences that resulted in defferred tax (assets) / liabilities are :

Note: 6. Corporate Social Responsibility (CSR)

As per the Companies Act, 2013, all companies having net worth of Rs.500Crores or more, turnover of Rs. 1,000 crores or more or net profit of Rs. 5 Crores or more during any financial year are required to spend at least 2% of average net profit of the Company’s three immediately preceding financial year. Accordingly, the Company was required to spend Rs. 54.70 Lakhs towards CSR activities in financially year 2014-15. Expenditure related to Corporate Social Responsibility incurred as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof :Rs.2.81 Lakhs.

Note: 7. Information on related party as required by Accounting Standard (AS-18)on Related Party Disclosures for The year ended 31st March, 2015

In accordance with the requirement of Accounting Standard (AS 18) Related Party Disclosures, the names of the related parties where control exits and/or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management are :-

List of Related Parties :-

A) Key Management Personnel:

Mr. G Ashok Reddy

Mr. L Vinay Reddy

Mr. L Jaipal Reddy

B) Other Related Parties

Entities where Key Management Personnel exercises significant influence/Group Companies:

Federal Brands Limited [Formerly Microtex India Limited]

Vinay Hosiery Private Limited

Hype Integracomm Private Limited

Blue Chip Fashions Private Limited /Strategy Games Private Limited

Holstein Eco foods Private Limited

Reddy & Pathare Elastics Private Limited

Bellini Fashions Private Limited

Lariene Fashions Private Limited

Anka Enterprises Private Limited

Lovable Lifestyles Private Limited

Aarthik No-Middleman Online Welfare Foundation

Magnus marketing

Techknit Industries

Aadhunik Vitarak

Note: 8. Current Assets, Loans and Advances:

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of the business.

Note: 9. Amount payable to Micro Small Medium Enterprises:

Trade payables as at 31st March, 2015 include Rs. 5,13,87,759/- (Previous year Rs. 1,24,43,320/-), amount due to Micro Small Medium Enterprises. However, those enterprises are ascertained in cases where they are registered in that category.

Note: 10. Previous year figures:

Previous year figures have been regrouped / recasted wherever considered necessary to make them comparable, with those of the current year.

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Mar 31, 2014

Note 1.1 :

(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Note: 1.2 : Details of terms of repayment and security provided in respect of above term loan:

i) Repayable in 5 years including Moratorium of 6 months starting from 1st April 2013.

ii) Secured against exclusive charge on all fixed assets located at Singsandra, Bangalore including Plant & Machinery and Land & Building

iii) Company has pledged Mutual Funds of Rs. 22 crores in favour of bank. MF of Rs. 12 crores to be released post creation of above security. Remaining MF of Rs. 10 crores to be retained and will be released after one year with prior approval of Bank.

Note: 1.3 : The above long term borrowing from bank is guaranteed by following two directors: Mr. L Vinay Reddy, Managing Director Mr. L. Jaipal Reddy, Director

Note: 2.1 : The above cash credit from bank is secured by following:

Primary Security : Hypothecation of raw material, stock in process, stores and spares, packing material, finished goods, books debts of the Company.

Collateral Security : Exclusive charge on all fixed assets located at Singsandra, Bangalore including Plant & Machinery and Land & Building

Note: 2.2 : The above long term borrowing from bank is guaranteed by following two directors:

Mr. L Vinay Reddy, Managing Director Mr. L. Jaipal Reddy, Director

Note (i): Current maturities of long-term debt (Refer Notes 4.1, 4.2 and 4.3 - Long-term borrowings for details of security and guarantee):

# Interest Expenses has been shown as net off with Interest Received Rs. 22,11,484/- (Prev. Year 34,28,922/-). Interest expenses is also net off with interest subsidy received Rs. 50,58,581/- (Prev. Year NIL)

Note 2.3. Contingent Liabilities

Demand Notice from Customs Authorities 4,719,798 4,719,798 *Out of this Rs. 27,70,000 deposited underprotest

Income tax Demand A.Y. 2010-11 954,730 954,730

Income tax Demand A.Y. 2011-12 3,944,380 3,944,380 [Appeal Pending before Hon. CIT(Appeal)]

Note 2.4. Deferred Tax Assets / Liabilities

i) The Deferred Tax Liability for current year of Rs.76,59,096/- (P.Yr. 88,09,954) is recognised in Profit and Loss A/c.

ii) Tax effect of significant temporary differences that resulted in defferred tax (assets) / liabilities are :

2.5. Information on related party as required by Accounting Standard (AS-18) on Related Party Disclosures for the year ended 31st March, 2014

In accordance with the requirement of Accounting Standard (AS 18) Related Party Disclosures, the names of the related parties where control exits and/or with whome transactions have taken place during the year and description of relationships, as identified and certified by the management are :-

List of Related Parties :- A) Key Management Personnel :

Mr. G Ashok Reddy Mr. L Vinay Reddy Mr. L Jaipal Reddy

B) Other Related Parties

Entities where Key Management Personnel exercises significant influence/ Group Companies :

Federal Brands Limited [Formerly Microtex India Limited]

Vinay Hosiery Private Limited

Hype Integracomm Private Limited

Blue Chip Fashions Private Limited

Holstein Ecofoods Private Limited

Reddy & Pathare Elastics Private Limited

Bellini Fashions Private Limited

Lariene Fashions Private Limited

Enka Enterprises Private Limited

Magnus marketing

Techknit Industries

Aadhunik Vitarak

Note: 2.6 Current Assets, Loans and Advances:

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of the business.

Note: 2.7 Amount payable to Micro SmallMedium Enterprises

Trade payables as at 31st March, 2014 include Rs. 1,24,43,320/- (Previous year Rs. 1,07,78,540/-), amount due to Micro Small Medium Enterprises. However, those enterprises are ascertained in cases where they are registered in that category.

Note: 2.8 Previous year figures:

Previous year figures have been regrouped / recasted wherever considered necessary to make them comparable with those of the current year.

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Mar 31, 2013

Corporate Information

Lovable Lingerie Limited (the Company) is a Limited Company domiciled in India and incorporated under the Provisions of the Companies Act, 1956. The Company is engaged in the business of manufacturing hosiery/garment products. The shares of the Company are listed in BSE and NSE.

1.1. Information on related party as required by Accounting Standard (AS-18) on Related Party Disclosures for the year ended 31st March, 2013

List of Related Parties :- A) Key Management Personnel :

Mr. G Ashok Reddy Mr. L Vinay Reddy Mr. L Jaipal Reddy

B) Other Related Parties

Entities where Key Management Personnel exercises significant influence/ Group Companies :

Federal Brands Limited [Formerly Microtex India Limited] Bellini Fashions Private Limited

Vinay Hosiery Private Limited Lariene Fashions Private Limited

Hype Integracomm Private Limited Tecknit Industries

Blue Chip Fashions Private Limited Aadhunik Vitarak Holstein Ecofoods Private Limited Reddy & Pathare Elastics Private Limited

1.2 Current Assets, Loans and Advances:

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of the business.

1.3 Trade payables as at 31st March, 2013 include Rs. 1,07,78,540/- (Previous Year Rs.18,05,261/-), amount due to Micro Small Medium Enterprises.

However, these enterprises are ascertained in cases where they are registered in that category.

1.4 Previous year figures:

Previous year figures have been regrouped / recasted wherever considered necessary to make them comparable with those of the current year.

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Mar 31, 2012

Note 1.1: Information on related party as required by Accounting Standard (AS-18) on Related Party Disclosures for the year ended 31st Mar, 2012

In accordance with the requirement of Accounting Standard (AS 18) Related Party Disclosures, the names of the related parties where control exits and/or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management are

Note 1.2: Current Assets, Loans and Advances:

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of the business.

Note 1.3: The Revised Schedule VI has become effective form 1st April,2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspondence with the current year''s classification/disclosure.

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Mar 31, 2011

1 The Initial Public Offer (IPO) proceeds have been utilized as per objects of the issue as stated in the prospectus as under:

2 Current Assets, Loans and Advances:

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of the business. Loans and Advances-Others represent advertisement materials stock on hand.

3 Leases:

Operating Lease:

Rental expenses for operating leases for the year ended March 31, 2011 and March 31, 2010 was Rs9,765,560/-and Rs8,661,480/- respectively.

The company has leased facilities under cancelable operating leases. The future payments in respect of these leases as on March 31,2011 are:

Minimum lease payments:

4 Dues to Micro, Small and Medium Enterprises

The Company is in the process of compiling relevant information about their overage under Micro, Small and Medium Enterprises Development Act, 2006 from its suppliers. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the opinion of management, the impact of interest, if any, that may be payable in accordance with the provision of this Act is not expected to be material.

5. Information on related party as required by Accounting Standard (AS-18) on Related Party Disclosures for theyearended 31st Mar, 2011

In accordance with the requirement of Accounting Standard (AS 18) Related Party Disclosures, the names of the related partieswhere control exits and/or with whome transactions havetaken placeduringtheyearand description of relationships, as identified and certified by the management are :-

List of Related Parties :-

A) Key Management Personnel:

Mr.G AshokReddy

Mr.L VinayReddy

Mr.L JaipalReddy

B) Other Related Parties

Entities where Key Management Personnel exercises significant influence/ Group Companies:

- Federal Brands Limited [Formerly Microtex India Limited]

- Vinay Hosiery Private Limited

- Hype Integracomm Private Limited

- Strategy Games Pvt. Ltd.

- Holste in Ecofoods Private Limited

. Reddy & Pathare Elastics Private Limited

. Belleni Fashions Private Limited

. Lariene Fashions Private Limited

. Tecknit Industries

. Aadhunik Vitarak

6) Previous year figures:

Previous year figures have been regrouped / recasted wherever considered necessary to make them comparable., with those of the current year