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
 our opinion.
 
 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
 extent applicable.
 
 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
 audit.
 
 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
 books.
 
 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
 account.
 
 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,
 1956.
 
 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
 2012.
 
 1.  [a] The Company has maintained proper records showing full
 particulars including quantitative details and location of the Fixed
 Assets.
 
 [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
 reasonable.
 
 [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
 of account.
 
 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
 relevant time
 
 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
 under.
 
 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
                                                       amounts
 pending            Name of the Statute       Rs.      relate to
 
 Commissioner of
 Customs,           Customs Act           4,719,798/-  2010-2011
 Bangaluru
 
 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
 Company.
 
 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
 were obtained.
 
 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''
 Report.
 
 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.
 
 Chartered Accountants
 
 Firm Registration NO.112600W
 
 M.F.Attar
 
 Proprietor
 
 Membership No.034977
 
 Date: 14th May, 2012