Your Company's Directors are pleased to present the 38^th Annual Report of the Company, along with the
Audited Financial Statements for the financial year ended 31^st March 2025.

FINANCIAL SUMMARY

(Rs. in Lakhs)

OPERATIONS

For the financial year 2024-25, the Company recorded a net turnover of Rs. 4219.33 lakhs as against Rs.
6376.02 lakhs for the financial year 2023-24. The Net Loss Before Tax stood at Rs. 406.79 lakhs as against
profit of Rs. 540.79 lakhs over last year and Profit After Tax stood at Rs. 178.65 lakhs for the year as against
the profit of Rs. 428.29 lakhs in the last year.

SEGMENT-WISE RESULTS

The Company is engaged in the business of manufacturing garments. Therefore, there is no separate
reportable segment.

TRANSFER TO RESERVES

As permitted under the Act, the Board does not propose to transfer any amount to general reserve and has
decided to retain the entire amount of profit for FY 2024-2025 in the profit and loss account.

DIVIDEND

Declaration and payment of dividend

The Board of Directors does not recommended dividend for the financial year ended on 31^st March, 2025.
Unclaimed dividends

Details of outstanding and unclaimed dividends previously declared and paid by the Company are given
under the Corporate Governance Report.

SUBSIDIARY / JOINT VENTURE / ASSOCIATE COMPANY

Your Company does not have any subsidiary, joint venture or associate Company.

MATERIAL CHANGES AND COMMITMENT

No material changes and commitments affecting the financial position of the Company occurred between
the end of the financial year to which this financial statement relates and the date of this report.

ANNUAL RETURN

A copy of Annual Return as provided under section 92(3) and section 134(3)(a) of the Companies Act, 2013
('the Act') in form MGT-7 is made available on the website of the Company and can be accessed at
https://lovableindia.in/pages/Draft-annual-return

BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

As on the date of this report, the Board of your company consist of 6 Directors comprising of 3 Independent
Directors, 1 Non-Executive Director and 2 Executive Directors, details thereof have been provided in the
Corporate Governance Report.

In terms of the requirement of the Listing Regulations, the Board has identified core skills, expertise, and
competencies of the Directors in the context of the Company's businesses for effective functioning. The list
of key skills, expertise and core competencies of the Board of Directors is detailed in the Corporate
Governance Report.

In the opinion of the Board, all the directors, as well as the directors appointed / re-appointed during the
year possess the requisite qualifications, experience and expertise and hold high standards of integrity.
Criteria for determining qualification, positive attributes and independence of a director is given in the NRC
Policy, which can be accessed on Company's website at https://lovableindia.in/pages/policies.

A. Appointment and Re-appointment:

During the year under review Mrs. Taruna Vinay Reddy (DIN: 02787135), Director of the Company, who
retired by rotation in terms of Section 152(6) of the Act, was re-appointed by the Members at the 37^th
Annual General Meeting held on August 23, 2024.

Further the Board of Directors of the company on the recommendation of the Nomination and
Remuneration Committee (“NRC”) appointed Mr. Manoor Raghavendra Maiya (DIN: 10636414) as an

Additional Director and designated as Independent Director on the Board with effect from 28^th May 2024
and regularized by Members at the 37^th Annual General Meeting held on August 23, 2024.

B. Re-appointment of Director retiring by rotation:

In accordance with the provisions of Section 152 of the Companies Act, 2013, Mr. Vindamuri Giriraj (DIN:
09719564), Executive Director of the Company, retires by rotation at the ensuing AGM and being eligible,
seeks re-appointment. A resolution seeking the re-appointment of Mr. Vindamuri Giriraj (DIN: 09719564),
forms part of the Notice convening the ensuing Annual General Meeting scheduled to be held on September
30,2025.

The profile along with other details of Mr. Vindamuri Giriraj are provided in the annexure to the Notice of
the Annual General Meeting.

C. Resignations:

During the year under review no director has resigned from the position of director.

D. Changes In Key Managerial Personnel:

The following have been designated as the Key Managerial Personnel of the Company pursuant to sections
2(51) and 203 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014:

Key Managerial Personnel as on 31^st March 2025:

NUMBER OF MEETINGS OF THE BOARD

The Board of Directors met 5 (Five) times during the year on 28^th May 2024, 29^th July 2024, 14^th November
2024, 30^th January 2025 and 14^th February 2025. For details of the meetings of the board, please refer to
the corporate governance report, which forms part of this report.

The intervening gaps between the Meetings were within the period prescribed under the Companies Act,
2013 and SEBI (LODR) Regulations.

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION

For the purpose of selection of any Director, the Nomination and Remuneration Committee identifies the
person of integrity who possess relevant expertise, experience and leadership qualities required for the
position and also takes into consideration recommendation, if any, receives from any members of the
Board. The Committee also ensures that the incumbent fulfills such other criteria with regard to age and
other qualifications as laid down under the Companies Act, 2013 or other applicable laws.

The Board has, on the recommendation of the Nomination and Remuneration Committee framed a policy
for selection and appointment of Directors, Senior Management, and their remuneration.

The Company's policy on directors' appointments and remuneration and other matters provided in Section
178(3) of the Act has been disclosed in the corporate governance report, which forms part of the directors'
report. The policy is made available on the website of the Company and can be accessed at
https://lovableindia.in/pages/policies.

INDEPENDENT DIRECTORS

A. Declaration by Independent Directors Under Sub-Section (6) Of Section 149:

All the Independent Directors of the Company have submitted declarations that each of them meets the
criteria of independence as provided in Section 149(6) of the Companies Act, 2013 along with Rules framed
thereunder and Regulation 25 read with Regulation 16 of Listing Regulations. In terms of Regulation 25(8)
of the SEBI (LODR) Regulations, Independent Directors have confirmed that they are not aware of any
circumstance or situation which exists or may be reasonably anticipated, that could impair or impact their
ability to discharge their duties with an objective of independent judgement and without any external
influence. The Directors have further confirmed that they are not debarred from holding the office of the
director under any SEBI order or any other such authority.

The Board of Directors has taken on record the declaration and confirmation submitted by the Independent
Directors and is of the opinion that they fulfil the conditions specified in the Act & Listing Regulations and
are independent of the management and possesses relevant integrity, expertise, and experience (including
proficiency in terms of Section 150(1) of the Act and applicable rules thereunder) of all Independent
Directors on the Board.

B. Terms and Conditions of Appointment:

The terms & conditions of appointment of Independent Director stipulates under section 149, 150 and 152
of the Companies Act 2013 read with 'Guidelines for Professional Conduct' pursuant to Schedule IV to the
Act. The details of such terms is available on the website of the company www.lovableindia.in and may be
accessed through the web link https://www.lovableindia.in/policies

C. Familiarization Program for The Independent Directors:

In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI
(LODR) Regulations”), the Company has put in place a Familiarization Program for the Independent & Non¬
Executive Directors to familiarize them with the Company, their roles, rights, responsibilities in the
Company, nature of the industry in which the Company operates, business model etc. The details of such
program is available on the website of the company www.lovableindia.in and may be accessed through the
web link https://lovableindia.in/pages/policies.

EVALUATION OF PERFORMANCE OF THE BOARD, ITS COMMITTEES, AND INDIVIDUAL DIRECTORS

The Board of Directors have carried out an annual evaluation of its own performance including various
committees, and individual directors pursuant to the provisions of the Companies Act 2013 and the
Corporate Governance requirements as prescribed under regulation 17(10), 25(4) and other applicable
provisions of the SEBI (LODR) Regulations and the Guidance note issued by SEBI.

The performance of the Board was evaluated by the Board including Independent Directors after seeking
inputs from all the directors on the basis of various criteria such as Board Composition, process, dynamics,
quality of deliberations, strategic discussions, effective reviews, committee participation, governance
reviews etc.

The performance of the committees was evaluated by the board after seeking inputs from the committee
members on the basis of criteria such as Committee composition, process, dynamics, deliberation, strategic
discussions, effective reviews etc.

The Board and the Nomination and Remuneration Committee reviewed the performance of the individual
directors on the basis of the criteria such as contribution of the individual director to the Board and
committee meetings like preparedness on the issues to be discussed, meaningful and constructive
contribution and inputs in meetings etc. In addition, the Chairman was also evaluated on the key aspects of
his role.

In a separate meeting of independent directors, performance of non-independent directors, performance
of the board as a whole and performance of the Chairman was evaluated, taking into account the views of
the executive directors and non-executive directors. The same was discussed in the board meeting that
followed the meeting of independent directors, at which the performance of the Board, its committee and
individual Directors was also discussed.

COMMITTEES OF THE BOARD OF DIRECTORS

The Company has constituted the following committees in compliance with the Companies Act, 2013 and
SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015:

1. Audit Committee,

2. Nomination and Remuneration Committee,

3. Stakeholders Relationship Committee, and

4. Corporate Social Responsibility Committee.

The Board has accepted all the recommendations of the above committee. The brief description,
composition and other required details of the above committees are provided in Corporate Governance
Section to this Annual Report.

SECRETARIAL STANDARDS

Section 118 of the Act mandates compliance with the Secretarial Standards on board meetings and general
meetings issued by The Institute of Company Secretaries of India. During the year under review, The
Company has complied with the applicable Secretarial Standards.

PARTICULARS OF LOANS, GUARANTEE, AND INVESTMENTS

The particulars of loans, guarantees and investments covered under section 186 of the Companies Act, 2013
(“the Act”) have been disclosed in the financial statements. Refer Note: 3 to the Financial Statements.

RISK MANAGEMENT

Your Company has an elaborate Risk Management procedure. Major risks identified by the businesses and
functions are systematically addressed through mitigating actions on a continuing basis. The Audit
Committee reviews the status of key risks and steps taken by the Company to mitigate such risks at regular
intervals.

RELATED PARTY TRANSACTIONS

In line with the requirements of the Companies Act, 2013 and SEBI (LODR) Regulations, your Company has
formulated a Policy on Related Party Transactions which is available on Company's website and can be
accessed at https://lovableindia.in/pages/policies. The Policy intends to ensure that proper reporting,
approval and disclosure processes are in place for all transactions between the Company and related
parties.

All contracts, arrangements and transactions entered by the Company with related parties during 2024-25
(including any material modification thereof), were in the ordinary course of business and on an arm's
length basis and were carried out with prior approval of the Audit Committee. Prior omnibus approval of
Audit Committee was obtained for Related Party T ransactions on a yearly basis for transactions which were
planned and/or repetitive in nature and or entered in the Ordinary Course of Business and are at Arm's
Length.

None of the contracts, arrangements and transactions with related parties, required approval of the Board/
Shareholders under Section 188(1) of the Act and Regulation 23(4) of the Listing Regulations nor any
transactions fall under the scope of Section 188(1) of the Act.

The information on transactions with related parties pursuant to Section 134(3) (h) of the Act read with
Rule 8(2) of the Companies (Accounts) Rules, 2014 in Form AOC-2 provided as annexure to board report.

WHISTLE BLOWER MECHANISM / VIGIL MECHANISM

T o create enduring value for all stakeholders and ensure the highest level of honesty, integrity and ethical
behaviour in all its operations, the company has formulated a Vigil Mechanism in addition to the existing
code of conduct that governs the actions of its employees. This Whistle blower policy aspires to encourage
all employees to report suspected or actual occurrence(s) of illegal, unethical or inappropriate events
(behaviours or practices) that affect Company's interest / image.

A copy of the Policy is available on the website of the Company and may be accessed through the web link
https://lovableindia.in/pages/policies.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013

The Company has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at the
Workplace, to provide protection to women (including outsiders) at the workplace and for prevention and
redressal of complaints of sexual harassment and for matters connected or incidental thereto, with the
objective of providing a safe working environment, where employees feel secure. The Company has also
constituted an Internal Complaints Committee to consider and to redress complaints of sexual harassment.
The Committee has not received any complaint of sexual harassment during the year under review.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

In accordance with the requirements of Section 135 of Companies Act, 2013, your Company has constituted
a Corporate Social Responsibility Committee. The composition, terms of reference and other relevant
details of the Corporate Social Responsibility Committee is provided in the Corporate Governance Report.

The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives
undertaken by the Company on CSR activities and expenditure incurred thereon during the year are set out

in "Annexure A" of this report in the format prescribed in the Companies (Corporate Social Responsibility
Policy) Rules, 2014. The policy is available on the website of the Company; web link
https://lovableindia.in/pages/policies.

PARTICULARS OF EMPLOYEES

The information required under Section 197 of the Companies Act, 2013 read with rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been appended as
"Annexure B" to this Report.

The information required under Section 197 of the Companies Act, 2013 read with Rule 5(2) of The
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is not applicable, since
during the year under review none of the employees of the Company was in receipt of remuneration in
excess of the limits specified, whether employed for the whole year or part thereof.

DIRECTORS RESPONSIBILITY STATEMENT

Based on the framework of internal financial controls and compliance systems established and maintained
by the Company, work performed by the internal, statutory, cost, and secretarial auditors including the
audit of internal financial controls over financial reporting by the statutory auditors and the reviews
performed by the management and the relevant Board Committees including the Audit Committee, the
Board is of the opinion that the Company's internal financial controls were adequate and operating
effectively during the FY 2024-25.

Pursuant to Section 134 (5) of the Act, the Board of Directors, to the best of their knowledge and ability,
confirm that for the financial year ended March 31, 2025:

a) In the preparation of the annual accounts for the financial year ended 31^st March, 2025, the
applicable accounting standards have been followed and that no material departures have been
made from the same;

b) They have selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent, so as to give a true and fair view of the state of
affairs of the Company at the end of the financial year and of the loss of the Company for that period;

c) They have taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;

d) They have prepared the annual accounts on a going concern basis;

e) They have laid down internal financial controls for the Company and such internal financial controls
are adequate and operating effectively; and

f) They have devised proper systems to ensure compliance with the provisions of all applicable laws
and such systems are adequate and operating effectively.

PUBLIC DEPOSITS

The Company has not accepted any deposits covered under Chapter V of the Companies Act, 2013.
LISTING

Your Company's shares are listed in the Bombay Stock Exchange Limited, Mumbai (BSE) and National Stock
Exchange of India Limited, Mumbai (NSE) with effect from 24^th March 2011 and has paid all the annual
listing fees duly.

CASH FLOW ANALYSIS

In conformity with the provisions of Regulation 34(2) of SEBI (LODR) Regulations, the Cash Flow Statement
for the year ended 31^st March, 2025 is enclosed as a part of this Annual Report.

AUDITORS

A. Statutory Auditor and Auditors' Report:

Based on the recommendation of the Audit Committee and the Board of Directors, Members of the Company
at the 35^th Annual General Meeting held on September 27, 2022, appointed M/s. DMKH & Co., (ICAI Firm
Registration No. 116886W) a firm of Chartered Accountants as a Statutory Auditors of the Company for
One term of 5 (five) consecutive years to hold office from the conclusion of the 35^th Annual General Meeting
until the conclusion of the 40^th Annual General Meeting (AGM) to be held in year 2027.

The notes on Financial Statements referred to in the Auditors Report are self-explanatory and do not call
for any further comments. The Auditors' Report does not contain any qualifications, reservation or adverse
remark and is prepared as per "Ind AS".

B. Secretarial Auditors and Auditors' Report:

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed M/s. Nishtha
Khandelwal and Associates, Practicing Company Secretaries, Mumbai to undertake the Secretarial Audit of
the Company. The Secretarial Audit Report is annexed herewith as "Annexure C". Observation made in the
secretarial audit report is explanatory.

C. Cost Audit:

The provisions of Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and
Audit) Rules, 2014 and Rule 14 of the Companies (Audit and Auditor) Rules, 2014 are not applicable for
the business activities carried out by the Company.

D. Internal Auditor:

Pursuant to the provisions of Section 138 of the Companies Act, 2013 read with Rule 13 of the Companies
(Accounts) Rules, 2014 (as amended), the Board of Directors, on the recommendations of the Audit
Committee, of the Company, has approved and appointed M/s. ASSP & CO, Chartered Accountants, as the
Internal Auditors of the Company, for the financial year 2024-2025.

REPORTING OF FRAUD BY AUDITORS

During the year under review, neither the statutory auditors nor the secretarial auditors has reported to
the Audit committee, under section 143(12) of the Companies Act, 2013, any instances of fraud committed
against the Company by its officer or employees, the details of which would need to be mentioned in the
Board's report.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS

During the year under review, no significant or material orders were passed by the Regulators or Courts or
Tribunals which may impact the Going Concern Status of the Company's Operation in the future.

TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND

Pursuant to the provisions of Section 124 of the Companies Act, 2013 read with the Investors Education
and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 and all the applicable
amendments and re-enactments made thereunder, all shares in respect of which dividend has not been
paid or claimed for seven consecutive years or more shall be transferred by the Company in the name of
Investor Education and Protection Fund.

The details of the resultant benefits arising out of shares already transferred to the IEPF, year-wise amounts
of unclaimed / un-encashed dividends lying in the unpaid dividend accounts up to the year, and the
corresponding shares, which are liable to be transferred, are provided in corporate governance report
and are also available on our website, at https://lovableindia.in/pages/unpaid-dividend.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS &
OUTGO

A. CONSERVATION OF ENERGY

Your Company has a vision of being a 'Zero Injury' organization, your Company's strategic framework,
integrates Safety as a non-negotiable value. Information on conservation of energy, technology absorption,
foreign exchange earnings and outgo, pursuant to Section 134(3)(m) of the Companies Act, 2013 read with
the Companies (Accounts) Rules, 2014, are furnished below:

a. Conservation of Energy:

The Company continually takes steps to absorb and adopt the latest technologies and innovations in the
Garment Industry. These initiatives should enable the facilities to become more efficient and productive as
the company expands, thus helping conserve energy. All machinery and equipment are continuously
serviced, updated and overhauled in order to maintain them in good condition. This resulted in
consumption of lesser energy consumption.

Additional Investments and Proposals for Reduction of Consumption of Energy: Nil

Total Energy Consumption and Energy Consumption per Unit of Production (Form-A and Form B
Enclosed).

Conservation of Energy continues to receive increased emphasis at all the units of the Company.

Form - A

Form for Disclosure of particulars with respect to conservation of energy.

B. TECHNOLOGY ABSORPTION:

Absorbing technologies with state of art machineries like automated cutting machine, automated fabric
inspection machines, etc., the quality of the products and efficiency of the systems have been substantially
improved. By applying those technologies, the cost of production was under control.

The products manufactured and sold by the Company are not power intensive; hence the impact on overall
cost is marginal. However, steps have been taken to ensure energy conservation in the processing unit
where an energy efficient boiler is installed and condensate is being re-utilised.

Efforts made in Technology absorption as per Form B: Nil

Consumption per unit of Production

C. FOREIGN EXCHANGE EARNING AND OUTGOING

The Company had foreign exchange earnings from Exports during the year was NIL (Previous year NIL).
The total amount of outgo on account of foreign exchange utilized by the Company amounted to Rs. 4.59
lakhs (Previous year Rs. 2.82 lakhs) mainly on account of import of raw materials, finished goods, Capital
Goods, foreign travel.

Foreign exchange earned and outgo during the year ended March 31, 2025:

(Rs in lakhs)

CORPORATE GOVERNANCE

Your Company continues to lay a strong emphasis on transparency, accountability and integrity.

The Companies Act, 2013 and the SEBI (LODR) Regulations have strengthened the governance regime in
the country. Your Company is in compliance with the governance requirements provided under the new
law.

Your Company has in place all the statutory Committees required under the law. Details of Board
Committees along with their terms of reference, composition and meetings of the Board and Board
Committees held during the year, are provided in the Corporate Governance Report enclosed as "Annexure
D" to this report.

The Policy on Related Party Transactions, Remuneration Policy, CSR Policy and Whistle Blower Policy are
available on the website of the Company. The Company has established a vigil mechanism for Directors and
employees to report their genuine concerns, details of which have been given in the Corporate Governance
Report annexed to this Report.

A separate report on Corporate Governance is provided together with a Certificate from the Statutory
Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under
the Listing Regulations. A Certificate of the CEO and CFO of the Company in terms of sub-Regulation 17(8)
of the Listing Regulations, inter alia, confirming the correctness of the financial statements and cash flow
statements, adequacy of the internal control measures and reporting of matters to the Audit Committee, is
also annexed.

MANAGEMENT DISCUSSION AND ANALYSIS

To avoid duplication between the Directors' Report and the Management Discussion and Analysis, we
present below a composite summary of the performance and functions of the Company.

A. OVERALL INDUSTRY

The Indian Textile Industry has been a key contributor to the country's economy in the last three years,
with 7% of the manufacturing production and 2.3% of the GDP attributed to the sector. According to the
Indian Brand Equity Foundation (IBEF), the Textile and Apparel Industry accounts for 7% of the country's
industrial production. It is the second-largest source of employment after agriculture, providing jobs to
approximately 45 million people. It is the only industry that has generated huge employment for both
skilled and unskilled labour.

India is well integrated in the value-chain of the Textile Industry from fibre to fashion.

Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by
2030, driven by increasing demand from consumers.

Government Initiatives

The Indian government has come up with a number of export promotion policies for the textiles sector. It

has also allowed 100 per cent FDI in the Indian textiles sector under the automatic route.

Initiatives taken by Government of India are:

• In June 2022, Minister of Textiles, Commerce and Industry, Consumer Affairs & Food and Public
Distribution, Mr. Piyush Goyal, stated that the Indian government wants to establish 75 textile hubs
in the country.

• As per the preliminary project report for the park, the State government of Karnataka has earmarked
1,550 acres of land in Firozabad, Nadisinnur, and Kiranagi villages in Kalaburagi district. The total
cost of the infrastructure development of the park was estimated to ^1,834 crore.

• Scheme for Capacity Building in Textile Sector (SAMARTH) - To address the skilled manpower
requirement across textile sector, the scheme was formulated, under the broad policy guidelines of
“Skill India” initiative and in alignment with the framework adopted for skilling programme by
Ministry of Skill Development and Entrepreneurship. The scheme is approved for implementation till
March, 2024.

• Production Linked Incentive (PLI) Scheme - The PLI Scheme for Textiles to promote production of
MMF apparel, MMF Fabrics and Products of Technical Textiles in the country to create 60-70 global
players, attract fresh investment of Rs. 19,000 crore approximately and generate almost 7.5 lakh new
employment opportunities.

• PM-MITRA: T o attract investment for 'Make In India' initiative and to boost employment generation
through setting up of 7 (Seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks
in Greenfield/Brownfield sites with world class infrastructure including plug and play facility with
an outlay of Rs.4445 crore for a period of seven years upto 2027-28.

• Scheme for Integrated Textile Parks (SITP): The scheme provides support for creation of world-class
infrastructure facilities for setting up of textile units.

• Integrated Processing Development Scheme (IPDS): In order to facilitate the textile industry to meet
the required environmental standards and to support new Common Effluent Treatment Plants
(CETP)/ upgradation of CEPTs in existing processing clusters as well as new processing parks
specially in the Coastal Zones.

Overall Review of industry

Indian Textile industry can be divided into several segments, some of which can be listed as below:

- Cotton Textiles

- Silk T extiles

- Woolen Textiles

- Readymade Textiles

- Jute and Coir

Industry Strength

- India has rich resources of raw materials for the textile industry. It is one of the largest producers
of cotton in the world and also rich in resources of fibres like polyester, silk, viscose etc.

- India is riched in highly trained manpower. The country has a huge advantage due to lower labour
rates. Because of low labour rates, the manufacturing cost in textile manufacturing automatically
comes down to very reasonable levels.

- India is highly competitive in spinning sector and has presence in almost all processes of the value
chain.

- Low per-capita domestic consumption of textile indicating significant potential growth.

- The Domestic market is extremely sensitive to fashion fads and this has resulted in the development
of a responsive garment industry, catering to paying and aspirational customers.

- According to the Confederation of Indian Industry (CII), the Indian textile industry is expected to
hit US$ 250 billion production by FY26, rising at 12% CAGR between FY22-FY25. Exports are
projected to reach US$ 185 billion by FY25, doubling India's share of global textile trade to 10%.

- The industry growth will create jobs and generate value, attracting US$ 180 billion in investments.

B. OPPORTUNITIES AND THREATS
Opportunities:

For the apparel industry in general and our market in particular:

• Textile industry to reach $250 billion business size by 2025

• The domestic apparel & textile industry in India contributed to 2.3% to the country's GDP, 7% of
industry output in value terms

• India has a share of 5% of the global trade in textiles and apparel.

• Increasing urban women population and women corporate workforce

• Increasing brand consciousness and spending on kids

• Higher disposable income

• Increasing online retail.

• The company needs to concentrate on new global products.

• Low per-capita domestic consumption of textiles indicates significant potential growth.

Threats:

Many major international apparel brands have commenced operations in India realizing that Indian
markets are likely to emerge as one of the largest markets in the world in the next few decades. Competitive
intensity is expected to sustain high.

The domestic apparel & textile industry in India contributes approx. 2% to the country's GDP, 7% of
industry output in value terms. The share of textile, apparel and handicrafts in India's total exports was
11.4% in 2020-21. India stands as the 3rd largest exporter of Textiles & Apparel in the world.

C. PERFORMANCE OF THE TEXTILE INDUSTRY

- India's textile and garment exports have been growing at a steady pace, making it one of the leading
textile exporters in the world. The industry exports a wide range of products, including cotton
textiles, yarn, fabrics, and readymade garments. The United States, the United Arab Emirates, and
the United Kingdom are the largest export destinations for Indian textiles.

- The Indian government has taken several steps to support the textile industry's growth and
development. The government has implemented several schemes and initiatives, such as the
Technology Upgradation Fund Scheme (TUFS), which provides financial assistance to textile units
for the modernization and upgradation of technology. Additionally, the government has introduced
schemes to promote the use of natural fibers such as cotton, silk, and wool, which has helped boost
the demand for Indian textiles. The impact of the global and domestic economic slowdown is
directly affect the performance of the industry.

INITIATIVES
Capacity building:

In order to steer your company into an aggressive growth path, the Company is looking into enter the mass
segment, which had not been fully explored by the Company till date. T o meet the expected demand from
the mass segment, the company has built new capacity at our Erode Plant with an annual production
capacity of 25 lakhs nos., which is 30% of the Company's total capacity.

Upskilling of Employees:

Of all the factors of production, work force comes first. Upskilling and Reskilling the the work force in tune
with the latest technological developments, not only motivates the employees but also increase the
productivity and upgrades product standards. Your company, assisted with the Government of India
Initiative on Upskilling and Resiklling “Samarth” schemes, set up and tied up with training centres to equip
our work force with modern techniques.

New Product Categories and Styles:

Your company has identified the twin routes of deeper & category-leading brand-building & scale-up of
production routes to high sales volumes & to be the engines of growth.

? SPRT#L0124 collection of Lovable comprised of Premium & Classic products- Sports bra features
comfortable racer back design with broad shoulder straps for supports, made with soft and
breathable fabric, provides a secure fit with an outer elastic band.

? CB#L0524 - This wireless bra offers all days comfort with removable pads for customizable support
and full coverage, suitable for various occasions, from casuals wear under t-shirts and salwar
kameezes to more formal settings, versatility of this bra allow for wear with or without padding

? SC#L0624 (Soft Cup) - This bra is thoughtfully designed with a built-in nipple concealer, providing
confidence and discretion when worn under t-shirt, its full coverage seamless cups ensure a smooth
silhouette , making it ideal for pairing with salwar kameeze or any outfit, offers perfect blend of
functionality and style.

? SC#L0724 (Soft Cup) - This bra thoughtfully designed for mature and young woman, it features side
panels for enhanced support and seamless full-coverage cups, ensuring a smooth and flattering fit,
perfect for pairing with sarees, salwar kameezes, or every days outfits.

? SPRT #L0224 (Sports) - This sports bra features removal padding and dual strap options, allowing
it to be worn in both criss-cross and regular styles, ideal for yoga, gym workouts and everyday use,
designed with a back hole and hook-and-eye closure for easy wear, full coverage crafted from soft,
breathable fabric, ensure maximum comfort and support throughout the day.

? Cami#L0824 - This camisole is designed with versatility in mind, offering two styling options, can
be worn with a V-neck for sleek look or a U-neck for a more classic design, featuring a fully seamless
finish for a smooth and comfortable fit.

? SPRT#L04124 (sports bra) - This sport bra features broad steps for enhanced support and
seamless design for a smooth appearance, and full-coverage fabric for optimal comfort. The wise
outer elastic ensures a secure and supportive fit during any activity.

? L01797 - This full coverage T-shirt bra has a high neckline and provides good support with wide
shoulder straps. It offers a natural shape with soft seamed cups and is adjustable for comfort. Ideal
for daily wear in any weather & occasion.

Please visit lovableindia.in for https://lovableindia.in/ for details about our products.