We have audited the attached Balance sheet of Lovable Lingerie Limited
as at 31st March 2012 and also the Statement of Profit and Loss and the
Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company''s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis of
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said order to the
Further to our comments in the Annexure referred to in paragraph 3
above, we state that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement referred to in this report is in agreement with the books of
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211(3C) of Companies Act,
e) On the basis of the written representation received from the
Directors, and taken on record by Board of Directors, we report that
none of the director is disqualified as on 31st March 2012 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) In our opinion and as per the information and according to the
explanations given to us, the said accounts, read with the notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India.
(i) in the case of Balance Sheet, of the state of affairs of the
Company as on 31st March 2012.
(ii) in the case of Statement of Profit and Loss Account, of the Profit
of the Company for the year ended on that date and
(iii) in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date;
Annexure Referred to in paragraph 3 of the Auditor''s Report to the
members of Lovable Lingerie Limited for the year ended on 31st March
1. [a] The Company has maintained proper records showing full
particulars including quantitative details and location of the Fixed
[b] There is a regular program of physical verification, which in our
opinion is reasonable, having regard to the size of the Company and the
nature of fixed assets. No material discrepancies have been noticed in
respect of the assets physically verified during the year.
[c] The Company has not disposed off substantial part of fixed assets
during the year.
2 [a] Inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
[b] The procedures of physical verification of stocks followed by the
management are adequate in relation to the size of the Company and the
nature of its business.
[c] The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and has been properly dealt in the books
3 According to the information and explanations given to us the Company
has neither taken for granted any loan secured or unsecured, from/to
companies, firms or other listed in the register maintained under
section 301 of the Companies Act, 1956.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its business
with regard to purchase of stores, raw material including components,
packing materials, plant and machinery, equipment and other assets and
with regard to sale of goods. There is no major weakness in the
internal control procedures.
5. In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, aggregating during the year ended toRs.
5,00,000/- or more, in respect of any party have been made at a price
which are reasonable having regard to prevailing market price, at the
6. The company has not accepted any deposits from the public within
the meaning of Section 58Aand 58AA of the Act and the rules framed there
7. We are informed that the Company has the internal audit system in
addition to the existing internal control procedure.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government,
prescribing the maintenance of cost records under Section 209(l)(d) of
the Companies Act, 1956. We are of the opinion that prima facie the
prescribed accounts and records have been maintained and are being made
up. We have not however, made a detailed examination of the same with a
view to determining whether they are accurate.
9. According to the information and explanation given to us and
records as produced and examined by us, in our opinion the Company is
generally regular in depositing the undisputed statutory dues including
Provident Fund, Investor Education and Protection Funds, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty,
Excise Duty, Cess and other statutory dues which have not been
deposited on account of any dispute excepting those mentioned hereunder:
Forum where the
dispute is Amount in FY to which the
pending Name of the Statute Rs. relate to
Customs, Customs Act 4,719,798/- 2010-2011
10. Company has neither accumulated losses nor has it incurred cash
loss in the financial year under report and in the immediately
preceding financial year.
11. On the basis of the records examined by us and the information and
explanations given to us the company has not defaulted in repayment of
dues to financial institutions and banks.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. As the Company is not a chit fund, nidhi, mutual benefit fund or
society the provision of clause 4 [xiii] of the Companies (Auditors
Report) Order, 2003 is not applicable to the Company.
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, the provision of clause 4[xiv] of the
Companies (Auditors Report) Order, 2003 is not applicable to the
15. According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. Based on the information and explanation given to us by the
management, term loans were applied for the purpose for which the loans
17. According to the information and explanations received, the
Company has not applied short-term borrowings for long-term use.
18. According the information and explanation given to us, the Company
has not made any preferential allotment of shares during the year.
19. The Company has not issued any debentures during the year.
20. The Company has raised money through Pre IPO and IPO issue during
the year March 2011. The Company has disclosed the end use of money
raised by public issue of Equity Shares in Note No.12 of Schedule -24
to the financial statements and the same has been verified by us with
regards to the Prospectus filed and as disclosed in the Directors''
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
was noticed or reported during the year.
For Attar & Co.
Firm Registration NO.112600W
Date: 14th May, 2012