Notes to Accounts of Lorenzini Apparels Ltd.

Mar 31, 2025

(i) Vehicle loans are secured by hypothecation of the vehicles financed through the loan arrangements. Such loan are repayable in equal monthly installments over a period of 2 to 4 years and carry interest rate ranging between 7.95% to 9.30% p.a.

(ii) Unsecured loans are repayable in equal monthly installments over a period of 3 years and carry interest rate ranging between 14.00% to 15.00% p.a.

(iii) There is no default, continuing or otherwise, as at the balance sheet date, in repayment of any above loans.

i) Working Capital Loan from HDFC Bank is secured against hypothecation of current assets, FD''s and mortgage of Immovable Properties of the company, collateral security of immovable properties of others along with personal guarantee of Directors & Colletral Holders and carries effective interest @ 9.10% p.a. (Rep Rate 2.60%)

ii) Loan from NBFC is unsecured and carriers effective interesr @ 10.00% p.a.

The Company has borrowings from banks against the security of current assets and the company is submitting the monthly statement of stock and receivables to the banks.

During the year, the Company allotted equity shares pursuant to the exercise of share warrants issued in September 2023. In September 2023, the Company had issued 12,85,601 share warrants of face value ^10 each at an issue price of ^202.24 per warrant on a preferential basis. During the financial year 2024-25, 1,03,83,711 equity shares of face value ^1 each were allotted upon exercise of these warrants, post sub-division of equity shares and subject to bonus adjustment. The remaining unexercised share warrants were not subscribed. Subsequently, against the 1,03,83,711 equity shares so allotted, the Company issued 56,63,840 bonus equity shares of face value ^1 each, in the ratio of 6 (six) fully paid-up equity shares for every 11 (eleven) fully paid-up equity shares held, to eligible shareholders as on the record date.

i) The Company has only one class of equity shares having a par value of Rs. 1 per share. Each shareholder is entitled to one vote per share.

ii) In the event of liquidation of the Company,the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

*The Company had submitted an application to BSE Limited ("BSE") and the National Stock Exchange of India Limited ("NSE") on September 20, 2024, seeking reclassification of Ms. Deepika Jain from the category of âPromoter Shareholderâ to âPublic Shareholderâ, in accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Pursuant to the said application, BSE and NSE, vide their letters dated April 24, 2025, have granted their approval for the aforementioned reclassification.

SUB-DIVISION OF FACE VALUE OF EQUITY SHARES OF THE COMPANY FROM RS. 10/- (RUPEES TEN ONLY) EACH TO RE. 1/- (RUPEE ONE) EACH

The Board of Directors of the Company & approval of the members of the Company be and are hereby accorded for sub-division/split of equity shares of the Company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid-up, be sub-divided into 10 (ten) equity shares having face value of Re. 1/- (Rupee one only) each, fully paid- up, ranking pari-passu in all respects with effect from Record Date - March 28, 2024 by the Board (hereinafter the term ''Board'') of the Company.

INCREASE IN AUTHORIZED SHARE CAPITAL

On the recommendations of the Board of Directors of the Company on February 12, 2024 & the approval of the shareholder of the Company on March 14, 2024 and are hereby accorded to increase the Authorized Share Capital of the Company from the existing Rs. 1,170 Lakhs/- (Indian Rupees Eleven Crore Seventy Lakh Only) divided into 1,17,00,000 (One Crore Seventeen Lakh) Equity Shares of Rs.10/- (Rupees Ten Only) each to Rs.1730 Lakhs /- (Indian Rupees Seventeen Crore Thirty Lakh Only) divided into 17,30,00,000 /- (Seventeen Crore Thirty Lakh Only) Equity Shares of Re.1/- (Rupee One Only) each.

ISSUE OF BONUS EQUITY SHARES TO THE SHAREHOLDERS OF THE COMPANY

During the year, Company has issued 56,63,840 bonus equity shares of face value Re. 1 each against 10,38,371 share warrants having a face value of Rs. 10 each (equivalent to 1,03,83,710 equity shares of face value Re. 1 each, adjusted pursuant to the sub-division of equity shares), The bonus shares have been allotted in the ratio of 6 (Six) new fully paid-up equity shares of Re. 1/- each for every 11 (Eleven) fully paid-up equity shares of Re. 1/- each held by the eligible shareholders

The Board of Directors & approval of the members be and is hereby accorded to the Board of Directors of the Company (''the Board'') for capitalization of a sum not exceeding Rs 609.67 Lakhs (Rupees Six Core Nine Lakh Sixty Seven Thousand and Twenty only from out of the Securities Premium account/retained earnings/ free reserves and / or any other permitted reserves/surplus of the Company, as may be considered appropriate for the purpose of issue of Bonus Equity Shares of 6,09,67,020, as fully paid to the eligible members of the Company whose name(s) appear in the Register of Members on ''Record Date'' to be determined by the Company for this purpose, in proportion of 6 (Six) new fully paid-up equity share of Re. 1/- (Rupee one only) each for every 11 (Eleven) fully paid-up Equity Shares of Re. 1/- (Rupee one only) each (i.e. Adjusted for Sub-Division of equity Shares as on the Record Date) and that the new Bonus equity Shares so issued and allotted shall, for all purposes, be treated as an increase in the paid- up capital of the Company held by each such member. Record date of Issue of Bonus is March 28, 2024.

Issuance of Warrants Convertible into Equity Shares to the Proposed Allottees, on a Preferential Basis

38 Employee benefits_

a) Description of the type of the plan Defined Benefit Plan - Gratuity

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days of total basic salary last drawn for each completed year of service. Gratuity is payable to all eligible employees of the Company on retirement, separation, death or permanent disablement, in terms of the provisions of the Payment of Gratuity Act, 1972.

Post-Employment Benefits plan defined in a(ii) and a(iii) above typically expose the Company to actuarial risks such as: Salary increase, Discount rate, Morality and Disability and withdrawals

a) Salary Increases :- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

b) Discount Rate :- Reduction in discount rate in subsequent valuations can increase the plan''s liability.

c) Mortality & disability :- Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

d) Withdrawals :- Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

41 Financial risk management objectives and policies_

The Company''s principal financial liabilities comprise borrowings, security deposits, trade and other payables, etc. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade receivable, security deposit, cash and cash equivalents, etc. that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The management oversees the management of these risks. The management is responsible for formulating an appropriate financial risk governance framework for the Company and periodically reviewing the same. The management ensures that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The management reviews and agrees policies for managing each of these risks, which are summarised below.

(a) 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 prices comprise three types of risk: interest rate risk, foreign currency risk and Equity price risk.

(i) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has borrowings, therefore Company is exposed to such risk.

The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company''s interest rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term loans.

As at March 31, 2024 and 2023, financial liabilities in respect of Borrowings is 820.14 and 1321.73 Lakhs , respectively, were subject to variable interest rates. Increase/decrease of 100 basis points in interest rates at the balance sheet date would result in decrease/increase in profit/(loss) before tax of 8.20 Lakhs and 13.22 Lakhs for the year ended March 31, 2025 and 2024,

(ii) Foreign Currency 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.

(iii) Equity Price Risk

Equity Price Risk is related to the change in market reference price of the investments in equity securities.

The fair value of some of the Company''s investments measured at fair value through Profit and Loss statement exposes the Company to equity price risks. These investments are subject to changes in the market price of securities. The fair value of Company''s investment in quoted equity securities as of March 31, 2025 was 1345.95 Lakhs. A 10% change in equity price as of March 31, 2025 would result in a pre- tax impact of 13.46 Lakhs.

(Note: The impact is indicated on equity before consequential tax impact, if any).

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.

Credit risk arises mainly from loans, trade receivables and financial assets. The Company maintains a defined credit policy and monitors the exposures to these credit risks on an ongoing basis. None of the trade receivables are credit impaired as on reporting date.

On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. Based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the expected credit loss for trade receivables is not significant.

The carrying amount of financial assets represents the maximum credit exposure. The Company monitors credit risk very closely. The Management impact analysis shows credit risk and impact assessment as low.

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 have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

43. Additional Regulatory Information

a. Details of Benami Property held

The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b. Details of Loans and advances

The company has not granted any loans and advances to promoters, directors, key managerial personnel (KMPs) and the related parties which are repayable on demand or without specifying any terms or period of repayment.

c. Wilful Defaulter

The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance Sheet.

d. Relationship with Struck off Companies

The Company do not have any transactions with companies struck off.

e. Registration of charges or satisfaction with Registrar of Companies (ROC)

The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory period.

f. Compliance with number of layers of companies

The company has complied with the provision of the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

g. Compliance with approved Scheme(s) of Arrangements

There are no Schemes of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

h. Discrepancy in utilization of borrowings

The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance

i. Utilisation 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).

(B) the company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).

(c) The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intermediary shall:a) 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); orb) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(d) The Company have 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:a) 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;b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Additional Information

a. Undisclosed income

The Company has no transaction that is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

b. Details of Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto currency or Virtual Currency.

Previous year''s figures have been regrouped/reclassified wherever necessary to conform current year''s presentation.

Mar 31, 2024

r. Provisions, Contingent Liabilities And Contingent Assets Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the Company expects some or all of a provision to be reimbursed, reimbursement is recognised as a separate asset, but only when the reimbursement Is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money Is material, provisions are discounted using a current pre-tax rat* that reflects, when appropriate, the risks specific to the liability When discounting is used, the increase in the provision due to the passage of time is recognised ts a finance cost.

Contingent Liabilities and Contingent Assets

Contingent liability is a possible obligation that arises from past events, existence of which will be confirmed by the occurrence or non-occurrence of one or more uncertain future

events beyond the control of the Company, or a present obligation that arises from past events where it Is not probable that an outflow of resources will be required to settle the obligation.

A contingent liability also arises In extremely rare cases where there is a liability that cannot be measured reliably. The Company dees not recognize a contingent liability but discloses Its existence in the financial statements, unless the possibility of an outflow of resources embodying economic benefits is remote.

5. Cash flow statement

Cash flows are reported using the indirect method, whereby prom for the period is adjusted forthe effects of transactions of a non-cash nature _pastor

future operating cash receipts or payments and Item of income or expenses associated with Investing or finenpjDPSnatavs. The cash fOTom operating,\Qng and financing activities of the Company are segregated. /s**'' NftW PSlRj |^W ]

SUB-DIVISION OF FACE VALUE OF EQUITY SHARES OF THE COMPANY FROM RS. 10/- (RUPEES TEN ONLY) EACH TO RE. 1/- (RUPEE ONE) EACH

The Board of Directors of the Company & approval of the members of the Company be and are hereby accorded for sub-dtvislon/spllt of equity shares of the Company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid-up, be sub-divided Into 10 (ten) equity shares having face value of Re. 1/- (Rupee one only) each, fully paid- up, ranking pari-passu in all respects with effect from Record Date - March 28, 2024 by the Board (hereinafter the term ''Board'') of the Company.

INCREASE IN AUTHORIZED SHARE CAPITAL

On the recommendations of the Board of Directors of the Company on February 12, 2024 & the approval of the shareholder of the Company on March 14, 2024 and are hereby accorded to increase the Authorized Share Capital of the Company from the existing Rs. 1,170 Lakhs/- (Indian Rupees Eleven Crore Seventy Lakh Only) divided Into 1,17,00,000 (One Crore Seventeen Lakh) Equity Shares of Rs.10/- (Rupees Ten Only) each to Rs.1730 Lakhs/- (Indian Rupees Seventeen Crore Thirty Lakh Only) divided Into 17,30,00,000/- (Seventeen Crore Thirty Lakh Only) Equity Shares of Re.l/- (Rupee One Only) each.

Issuance of Warrants Convertible Into Equity Shares to the Proposed Allottees, on a Preferential Basis

The Board at their meeting held on Wednesday, August 22, 2022 have, approved by Members of the Company on September 20,2023, approved to issue and allot upto 12,85,601 (Twelve La s ig jy Five Thousand Six Hundred end One) wamnts, each convertible into, or exchangeeble for, 1 (one) fully paid-up equity share of the Company having a face value Rs, 10 (Rupees Ten only) ( Warrants , at a price of Rs, 202.24 (Rupees Two Hundred Two and Twenty Four Paisa only) each (Including the warrant subscription price and the warrant exercise price) payable In cash (''Warrant Issue Price aggregating upto Rs. 2,599.99 Lakhs (Rupees Twenty Five Crore Ninety Nine Lakh Ninety Nine Thousand Nine Hundred Forty Six and Twenty Four Paisa Only) ("Total Issue Size ) to persons entit es enlisted below ("Warrant Holder"/ "Proposed Allottees'') who are neither promoters nor are they part of the promoter group end will be categorized as public shareholders of the Company on a preferential basis ("Preferential Issue''). Upon receipt of Rs. 50.56 (Rupees Fifty and Fifty Six Paisa only) for each Warrant, which Is equivalent to 2594 (twenty five per cent) of the Warrant ssue tee as upfront payment ("Warrant Subscription Price'') entitling the proposed allottees to apply for and get allotted 1 (One) equity share of the Company egainst every Warrent held, on or * ^ore * J _f^C

2025 l.e., within 18 months from the date of allotment after receipt of a written notice from the Compeny, from the date of allotment of Warrants, on payment of Rs. 151.68 Rupees Â«202 24

One and Sixty Eight Paisa only) which Is equivalent to remaining 7594 (Seventy five per cent) of the Warrant Issue Price (âWarrant Exercise Price ). Number of share warrant issue , , of 2594 on October 5, 2023. Money received against Issue Is 525.00 Lakhs ____ --^

/A/ \r\

The Company''s principal financial liabilities comprise borrowings, security deposits, trade and other payables, etc. The main purpose of^thâ*f^Hve dirertfv from its operations. Company''s operations. The Company''s principal financial assets Include trade receivable, security deposit, cash and cash equiva en s, e .

The Company is exposed to market risk, credit risk and liquidity risk. The management oversees the management of these risks. Thearekientified, measured and appropriate financial risk governance framework for the Company and periodically reviewing the same.The management ensures a i _which are summarised

managed in accordance with the Company''s policies and risk objectives. The management reviews and agrees policies for managing eac o ''

below.

fa) Market Risk Market nrices comprise three types of risk:

Market risk is the risk that the fair value of future cash flows of a financial Instrument will fluctuate because of changes n mar p â¢ interest rate risk, foreign currency risk and Equity price risk.

lit Interest Rate Risk __. _rarÂ« Â«jince the Company has

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in m Â¦

borrowings, therefore Company is exposed to such risk.

The Company Is subject to variable interest rates on some of its interest bearing liabilities. Hie Company''s Interest rate exfMsure is m^niy re^ted^o Â«

also uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for .ts day to day operation, like short term loans.

As at March 31.2024and 2023, financial liabilities in respect of Borrowings Is 618.33 IJjkhsand Lakhsand ^^year endec^fi^rch ^1^*

of 100 basis points in interest rales at the balance sheet date would result In decrease/increase in profit/|lossj before tax of 6.18 lakh -

2024 and 2023, respectively.

F^Tc^nTrbkilthe risk that the fair value or future cash flows of an exposure will fluctua.e 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.

fiiil Equity Price Risk

Equity Price Risk is related to the change in market reference price of the investments in equity securities.

The fair value of some of the Company''s investments measured at fair value through Profit and Loss statement exposes the Company to equity price risks. These investments are subject to changes in the market price ofsecurit.es. The fair value of Company''s investment in quoted equity securities as of March 31, 2024 was 986.34 Lakhs. A 10% change in equity price as of March 31,2024 would result in a pre- tax impact of 9.86 Lakhs.

(Note: The impact is indicated on equity before consequential tax impact, if any).

_a. Details of Benami Property held

The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b. Details of Loans and advances

The company has not granted any loans and advances to promoters, directors, key managerial personnel |KMPs| and the related parties which are repayable on demand or without specifying any terms or period of repayment.

c. Wilful Defaulter

The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance Sheet.

d. Relationship with Struck off Companies

The Company do not have any transactions with companies struck off.

e. Registration of charges or satisfaction with Registrar of Companies (ROC)

The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory period.

f. Compliance with number of layers of companies .. â._iraK*_r i *_u<._rO Rules 2017

The company has complied with the provision of the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies ( estri ion o

g. Compliance with approved Scheme(s) of Arrangements

There are no Schemes of Arrangements has been approved by the Competent Authority In terms of sections 230 to 237 of the Companies Act, 2013.

h. Discrepancy In utilization of borrowings

The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance

i. Utilisation 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 , B %

entities (Intermediaries).

(B) the company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).

The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entitles (intermediaries) with the understanding that the ix- to or on

indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries); orb) provi e any guaran ee, secun behalf of the Ultimate Beneficiaries;

The Company have 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 a) 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, ) provi e any guara , security or the like on behalf of the Ultimate Beneficiaries.

44 Additional Information _: 1 v ___ â

a. Undisclosed Income

The Company has no transaction that is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1951 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

b. Details of Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto currency or Virtual Currency.________

45 Previous year''s figures have been regrouped/redassifled wherever necessary to conform current year''s presentation.

For MITTAL AND ASSOCIATES feltfd. C\

Chartered Accountants . . _A * 14/4 LORENZINI APPARElS LIMITED . \ )

Firm Registration No.- 106456W For Lorenzini Apparels Ltd.. -

vÂ» JL. Director^

-__^ ISkCfO) (Director)

---DIN:-02365790 k | \ DIN:-05281112

Partner

Membership No.: 165667 sAi

UDIN : 24165667BKEZDY459U )) Ankush Mittal

Place:-Mumbai \\ // (Company Secretary)

Date:- 23 May 2024 PAN ^No: COKPM8407B

Mar 31, 2023

r. Provisions, Contingent Liabilities And Contingent Assets Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embody,ng economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the Company expects some or all of a provision to be reimbursed, reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate the risks specific to the liability. When discounting Is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent Liabilities and Contingent Assets

Contingent liability is a possible obligation that arises from past events, existence of which will be confirmed by the occurrence or non-occurrence of one â¢nf^nCerta''^{n tUr},?r^{entS b}T^{nd the COntr}Â°'' Â°^{f thC Company}'' ^{or a present} obligation that arises from past events where it is not probable that an

outflow of resources will be required to settle the obligation. ^{F dldn}

A contingent liability also arises in extremely rare cases where there is a liability that cannot be measured reliably. The Company does not recognize a remote * â* ^eX''^Ste"^{Ce the fina}"^{Cial Statements}'' ^unless the Possibility of an outflow of resources embodying economic benefits is

s. Cash flow statement

detrl^Wn_r? ^rCPr^ef^{d USing} T ^{indireCt meth0d< Wh6reby Pr}Â°^{f,t f}Â°^{r the Peri0d iS adjuSted for the effects of} transactions of a non-cash nature, any

flows ThJ Lsh7 f ^ Â°^Perat''^{ng C3Sh reC6iptS} Â°^{r PaVmentS and item 0f inCOme or expenses} associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

a) Description of the type of the plan "" ^---

Defined Benefit Plan - Gratuity

Post-Employment Benefits plan defined in a(ii) and a(iii) above typically expose the Company to actuarial risks such as: Salary increase, Discount rate Morality and Disability and withdrawals

a) Salary Increases Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

b) Discount Rate Reduction in discount rate in subsequent valuations can increase the plan''s liability.

c) Mortality & disability Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

d) Withdrawals Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

40 Financial risk management objectives and policies_

la) Market Risk

li) Interest Rate Risk

As at March 31, 2023 and 2022, financial liabilities in respect of Borrowings is 505.30 Lakhs and 559.33 Lakhs, respectively, were subject to variable interest rates. Increase/decrease of 100 basis points in interest rates at the balance sheet date would result in decrease/increase in profit/(loss) before tax of 5.05 Lakhs and 5.59 Lakhs for the year ended March 31, 2023 and 2022, respectively.

(ii) Foreign Currency Risk

(iii) Equity Price Risk

Equity Price Risk is related to the change in market reference price of the investments in equity securities.

The fair value of some of the Company''s investments measured at fair value through Profit and Loss statement exposes the Company to equity price risks. These investments are subject to changes in the market price of securities. The fair value of Company''s investment in quoted equity securities as of March 31, 2023 was 37.44 Lakhs. A 10% change in equity price as of March 31, 2023 would result in a pre- tax impact of 3.74 Lakhs.

(Note: The impact is indicated on equity before consequential tax impadfcifany).

a. Details of Benami Property held

The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b. Details of Loans and advances

c. Wilful Defaulter

The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance Sheet.

d. Relationship with Struck off Companies

The Company do not have any transactions with companies struck off.

e. Registration of charges or satisfaction with Registrar of Companies (ROC)

The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory period.

f. Compliance with number of layers of companies

The company has complied with the provision of the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

g. Compliance with approved Scheme(s) of Arrangements

There are no Schemes of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

h. Discrepancy in utilization of borrowings

The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance

i. Utilisation of Borrowed funds and share premium:

(B) the company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).

The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intermediary shallra) 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); orb) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

The Company have 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 shallra) 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;b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

44 Additional Information

a. Undisclosed income

b. Details of Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto currency or Virtual Currency.__

45 Previous year''s figures have been regrouped/reclassified wherever necessary to conform current year''s presentation.

For MITTAL AND ASSOCIATES â¢ Â¦ _A For and on behalf of the Board of. Directors of

chartered Accountants ^or Lorenzmi Apparels Lta_WRENZINf^^g[Â£L]jfl^pparels Ltd.

Firm Registration No.-106456W r"" , '' . %

VWvmwvY pifSr?''¹ ^^JDtrectpr ''Â°Â®Director

Â»â:---â II j Sandeep Jain Deepika Jain

HemantBohra \\* (Managing Director) (WTD&CFO)

^Partner DIN:-02365790 DIN:- 0236S797

Membership No.: 165667

UDIN : 23165667BGTIFY2141 k ^ _v

Place:-Mumbai Vs.\

Date:- 29th May, 2023 V

Nitin Bhardwa]

(Company Secretary)

PAN No: DBSPB1402F

46 Note on First Time Adoption of Ind AS:

The accounting policies set out in the note here have been applied in preparing the financial statements for the year ended 31st March, 2023, the comparative information presented in these financial statements for the year ended 31st March, 2022 and in the preparation of an opening Ind AS balance sheet at 1st April, 2021 [the Company''s date of transition].

In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies [Accounting Standards] Rules, 2006 [as amended] and other relevant provisions of the Act [Indian GAAP], An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following notes.

Exemptions and exceptions availed:

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Indian GAAP to Ind AS.

Optional exemptions a Deemed cost

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 Indian GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. Accordingly, the Company has elected to measure all of its property, plant and equipment at their Indian GAAP carrying values except Building which is revalued on transition date based on Revaluation

report.

Mandatory exceptions

b Estimates ...... _T.

The estimates at 1st April, 2021 and at 31st March, 2022 are consistent with those made for the same dates inaccordance with Indian GAAP. The

estimates used by the Company to present these amounts inaccordance with Ind AS reflect conditions as at 1st April, 2021, the date of transition to Ind AS and as of 31st March, 2022.

Note on Transition to Ind AS - Reconciliations:

The following reconciliations provide the explanations and quantification of the differences arising from the transition from Indian GAAP to Ind AS in accordance with Ind AS 101: ^{1 2}

Foot Note to the Reconciliations a Remeasurement cost of net defined liability

Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

b Deferred Tax

The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach in the Indian GAAP) for computation of deferred taxes has resulted in charge to Reserves, on the date of transition, with consequential impact to the Statement of Profit and Loss account for the subsequent periods.

c Other comprehensive income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

d Estimates

The estimates at 1st April, 2021 and 31st March, 2022 are consistent with those made for the same dates in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies). The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions on 1st April 2021, the date of transition to Ind AS and as of 31st March, 2022.

e Reclassification as per requirement of Ind AS

Reclassification have been done in respective heads as per requirement of Indian Accounting Standards (Ind AS).

47 Previous year''s figures have been regrouped / reclassed, where necessary, to confirm to current year''s classification. This does not impact recognition and measurement principles followed for preparation of financial statements.

For and on behalf of the Board of Directors of

For MITTAL AND ASSOCIATES LORENZINI APPARELS LIMITED

chartered Accountants For Lorenzifii Apparels Ltd. For Lorenzini Apparels Ltd.

Firm Registration No.-106456W â

mgk

¹ '' (Managing Director) ( Whole Time Director)

HemantBohra DIN:- 0236S790 DIN:-02365797

Partner

Membership No.: 165667

UDIN : 2316S667BGTIFY2141 p\ ^ "

Place:- Mumbai V V --

Date:-29th May, 2023

Nitin Bhardwaj (Company Secretary)

PAN No: DBSPB1402F

Reconciliation of Equity as at 1st April, 2021

A. Reconciliation of Equity as at 31st March, 2022

B. Reconciliation of Statement of Profit and Loss for the year ended 31st March, 2022

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