To the Members of
Inflame Appliances Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Inflame Appliances Limited
("the Company"), which comprise the Balance Sheet as at 31st March 2023, the
Statement of Profit and Loss, and Statement of cash flows for the year then ended, and
Notes to the financial statements, including a summary of significant accounting policies
and other explanatory information (hereinafter referred to as "the financial
statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act,2013("the Act") in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2023, and its profits, and its cash flows
for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Companies Act, 2013.Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India(ICAI) together with the ethical requirements that are
relevant to our audit of the financial statements under the provisions of the Act, and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on the financial
statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statement of the current period. Keeping in
view the materiality, there is no key matter to be reported separately.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Directors
Report including Annexures to Directors Report, Management Discussion and Analysis,
Business Responsibility Report and Report on Corporate Governance but does not include the
financial statements and our auditors report thereon. The above-referred information is
expected to be made available to us after the date of this audit report.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information identified above when it becomes available and, in doing so,
consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
When we read the other information, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with
governance and take appropriate actions if required.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL
STATEMENTS
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act, with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance, and cash flows of
the Company in accordance with the accounting principles generally accepted in India,
including the accounting Standards specified under section 133 of the Act read with
relevant rules. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management and board of director is responsible
for assessing the Companys ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the Annexure "A" statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2) As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
(d) In our opinion, and the best of our information and explanation given to us, the
aforesaid financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with relevant Rule.
(e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of Section
164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B".
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has
been paid / provided by the Company to its directors in accordance with the provisions of
Section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long - term contracts including derivative contracts
for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
iv. a) The Management has represented that, to the best of its knowledge and belief, no
funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person(s)
or entity(ies), including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) The Management has represented, that, to the best of its knowledge and belief, no
funds have been received by the Company from any person(s) or entity(ies), including
foreign entities ("Funding Parties"), with the understanding, whether recorded
in writing or otherwise, that the Company shall, 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 provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.
Based on the audit procedures performed that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e) contain any
material misstatement. v. During the year company has neither paid any interim dividend
nor proposed any final dividend vi. Proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 for maintaining books of account using accounting software which has a feature
of recording audit trail (edit log) facility is applicable to the Company with effect from
April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and
Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
ANNEXURE ‘A TO THE INDEPENDENT AUDITORS REPORT ON THE AUDIT OF THE FINANCIAL
STATEMENT
(Referred to in paragraph 1 under heading ‘Report on Other Legal and Regulatory
Requirements section of our report of even date to the Members of Inflame Appliances
Limited on the financial statement of year ended 31st March, 2023).
i. a. A. The Company has generally maintained proper records showing full
particulars including quantitative details and situation of Property, Plant and Equipment.
B. The Company has generally maintained proper records showing full particulars of
Intangible assets.
b. The Company is having a regular programme of physical verification of all Property,
Plant and Equipment having substantial value, every year, which, in our opinion, is
reasonable having regard to the size of the Company and the nature of its business. In our
opinion and as per information and explanation given by the management discrepancies
observed were not material and have been appropriately accounted for in the books.
c. According to the information and explanations given to us, we report that, the title
deeds of all the immovable properties (other than properties where the company is the
lessee and the lease agreements are duly executed in favour of the lessee) disclosed in
the financial statement are held in the name of the Company.
d. The Company has not revalued its Property, Plant and Equipment and intangible assets
during the year.
Accordingly, the provisions of clause 3(i)(d) of the Order are not applicable.
e. According to the information and explanations given to us, there are no proceedings
which have been initiated or are pending against the Company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made
thereunder.
ii. (a) In our opinion, the management has conducted physical verification of inventory
at reasonable intervals during the year. According to the information and explanations
given to us and based on the audit procedures performed by us, we are of the opinion that
the coverage and procedure of such verification by the management is appropriate.
According to the information and explanations given to us, no material discrepancies of
10% or more in the aggregate for each class of inventory between physical inventory and
book records were noticed on physical verification.
(b) In our opinion and according to the information and explanations given to us,
during the year, the Company has been sanctioned working capital limits in excess of Rs. 5
crores, in aggregate, from a bank on the basis of security of current assets. However, on
pursuance of documents submitted to us the quarterly returns or statements filed by the
company with such banks are not in agreement with the books of account of the Company.
iii. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has neither made any investments,
nor provided guarantee or security but has granted advances in the nature of loans,
secured or unsecured, to companies.
a) A) Since, the company has not provided any loans or provided advances in the nature
of loans, or stood guarantee, or provided security to subsidiaries, joint ventures and
associates, and hence, the relevant clause is not applicable.
B) As per information and explanation given to us the details of loan given to parties
other than of subsidiaries and associates is as under:-
| Particulars |
Aggregate amount granted/provided during the year (in Lacs) |
Balance outstanding as at balance sheet date in respect of above
cases (in Lacs.) |
| Loan to other than Subsidiaries |
165 |
165.97* |
| & Associates |
|
|
* includes interest accrued thereon
b) According to the information and explanations given to us and based on the audit
procedures performed by us, we are of the opinion that the terms and conditions of loans
provided by the company are, prima facie, not prejudicial to the companys interest.
c) According to the information and explanations given to us and based on the audit
procedures performed by us, we are of the opinion that in respect of loans, the schedule
of repayment of principal and payment of interest has been stipulated and the receipts of
interest is regular, where it is due. For repayment of principal, moratorium has been
given and no repayment is due during the year.
d) According to the information and explanations given to us and based on the audit
procedures performed by us, no amount of loan is overdue for a period of more than 90
days.
e) According to the information and explanations given to us and based on the audit
procedures performed by us, we are of the opinion that no loan or advance in the nature of
loan granted which has fallen due during the year, has been renewed or extended or fresh
loans granted to settle the overdue of existing loans given to the same parties.
f) According to the information and explanations given to us and based on the audit
procedures performed by us, we are of the opinion that the Company has not granted any
loans or advances in the nature of loans either repayable on demand or without specifying
any terms or period of repayment.
iv. According to the information and explanations given to us, and on the basis of our
examination of the records of the Company, the Company has complied with the provisions of
Section 185 and 186 of Companies Act 2013 in respect of loans granted during the year.
v. In our opinion and according to the information and explanations given to us, the
Company has not accepted deposits or amount which deemed to be deposits. As such, the
directives issued by the Reserve Bank of India, the provisions of Sections 73 to 76 or any
other relevant provisions of the Act and the rules framed thereunder are not applicable to
the Company.
No order has been passed with respect to Section 73 to 76, by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.
vi. We have broadly reviewed the accounts and records maintained by the Company
pursuant to the Rules made by the Central Government for the maintenance of cost records
under sub-section (1) of Section 148 of the Act read with Companies (Cost Records &
Audit) Rules, 2014, as amended and we are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not, however, made detailed
examination of the records with a view to determine whether they are accurate and
complete.
vii. (a) According to records of the Company and information and explanation given to
us the Company has generally been regular in depositing undisputed statutory dues
including Goods and Services Tax, provident fund, employees state insurance, income-tax,
sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any
other statutory dues to the appropriate authorities. According to information and
explanation given to us there are no outstanding statutory dues as referred above as at
the last day of the financial year under audit for a period of more than six months from
the date they became payable.
(b) According to records of the Company and information and explanation given to us the
Company, the gross statutory dues of income tax or sale tax or service tax or duty of
custom or duty of excise or value added tax or cess or Goods and Service Tax and any other
statutory dues which have not been deposited on account of dispute or deposited under
protest and the forum where the dispute is pending are given below:
| Sl. No. Name of Statute |
Nature of the Dues |
Period to which the amount relates |
Forum where the dispute is pending |
Gross disputed amount (Rs. in Lacs) |
Amount deposited under protest/ appeal (Rs. in Lacs) |
Amount not deposited (Rs. in Lacs) |
| 1 Income Tax |
Income tax/ interest |
2018-19 |
CPC |
24.36 |
0 |
24.36 |
viii. In our opinion and according to the information and explanations given to us, the
Company has not surrendered or disclosed as income, any transaction not recorded in the
books of account, during the year in the tax assessments under the Income Tax Act, 1961
(43 of 1961). Accordingly, the provisions of clause 3(viii) of the Order are not
applicable.
ix. (a) In our opinion and according to the information and explanations given to us,
the Company has not defaulted except in the initial period of this financial year there is
temporary irregularity in repayment of loans or other borrowings or in the payment of
interest thereon to any lender.
(b) According to the information and explanations given to us and on the basis of our
audit procedures, we report that the Company has not been declared willful defaulter by
any bank or financial institution or other lender.
(c) In our opinion and according to the information and explanations given to us, the
term loans were applied for the purposes for which the loans were obtained.
(d) According to the information and explanations given to us, and the procedures
performed by us, and on an overall examination of the financial statements of the company,
we report that no funds raised on short-term basis, have been used for long-term purposes
by the Company.
(e) According to the information and explanations given to us the company does not have
subsidiaries, associates and joint ventures. Accordingly, provisions of clause 3(ix)(e) of
the order is not applicable.
(f) According to the information and explanations given to us the company does not have
subsidiaries, associates and joint ventures. Accordingly, provisions of clause 3(ix)(f) of
the order is not applicable.
x. (a) In our opinion and according to the information and explanations given to us,
the Company did not raise moneys by way of initial public offer or further public offer
(including debt instruments) during the year.
Accordingly, provisions of clause 3(x)(a) of the order are not applicable.
(b) In our opinion and according to the information and explanations given to us the
company has made private placement of shares on preferential basis during the year and the
requirements of section 42 and section 62 of the Companies Act, 2013 have been complied
with and the funds raised have been used for the purposes for which the funds were raised
that is for repayment of borrowing of the company, capital expenditure and other Working
Capital requirements of the company. However, company has not issued any or convertible
debentures (fully, partially or optionally convertible) during the year under
consideration.
xi. (a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, considering the principles of materiality
outlined in Standards on Auditing, we report that no fraud by the Company or on the
Company has been noticed or reported during the course of the audit.
(b) According to the information and explanations given to us, no report under
sub-section (12) of Section 143 of the Companies Act, 2013 has been filed by the auditors
in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government.
(c) As represented by the management, there are no whistle blower complaints received
by the company during the year. Accordingly, Provisions of clause 3(xi)(c) of the Act are
not applicable. xii. The Company is not a Nidhi Company. Accordingly, provisions of clause
3(xii) of the Order are not applicable.
xiii. In our opinion, the Company has complied with provisions of sections 177 and 188
of Companies Act, 2013 in respect of transactions with the related parties and the details
have been disclosed in the Financial Statements as required by the applicable accounting
standards.
xiv. (a) In our opinion and based on our examination, the Company has an internal audit
system commensurate with the size and nature of its business.
(b) We have considered the Internal Auditors reports of the company issued till date
for the period under audit. xv. In our opinion and according to the information and
explanations given to us, the Company has not entered into any non-cash transactions with
the directors or persons connected with them covered under Section 192 of the Act.
Accordingly, provisions of clause 3(xv) of the Order are not applicable.
xvi. (a) In our opinion and according to the information and explanations given to us,
the Company is not required to be registered under Section 45-IA of the Reserve Bank of
India Act, 1934. Accordingly, provisions of clause (xvi)(a) of the Order are not
applicable to the Company.
(b) According to the information and explanations provided to us, the Company has not
conducted any Non-Banking Financial or Housing Finance activities therefore the Company is
not required to be registered under Section 45-IA of the Reserve Bank of India Act,
1934.Accordingly, provisions of clause 3(xvi)(b) of the Order are not applicable
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, provisions of clause 3(xvi)(c) of the
Order are not applicable.
(d) According to the information and explanations given to us the company does not have
subsidiaries, associates and joint ventures and other entities as defined in the Core
Investment Companies (Reserve Bank) Directions, as such there is no group and accordingly,
provisions of clause 3(xvi)(d) of the Order are not applicable.
xvii. Based on our examination of the books and records of the Company, the Company has
not incurred cash losses in the financial year. However, there is cash loss of Rs. 39.59
lacs in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the year.
Accordingly, provisions of clause 3 (xviii) of the order are not applicable.
xix. According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realization of financial assets and payment
of financial liabilities, other information accompanying the financial statements, our
knowledge of the Board of Directors and management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report and
that Company is not capable of meeting its liabilities existing at the date of balance
sheet as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
xx. The company was not required to spend expenditure on Corporate Social
responsibility under section 135 of the Act. Hence reporting requirement under clause
20(xx)(a) and (b) of the order are not applicable.
|
FOR GANDHI MINOCHA & CO |
|
CHARTERED ACCOUNTANTS |
|
FRN: 000458N |
|
(GOURAV CHHIBBERR) |
|
PARTNER |
| PLACE : PANCHKULA |
M.No.: 513968 |
| DATED : 24.05.2023 |
UDIN: 23513968BGRHQW2268 |
+91-9892691696
