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Inflame Appliances Ltd.

BSE: 541083 Sector: Consumer
NSE: N.A. ISIN Code: INE464Z01017
BSE 13:46 | 03 Oct 460.00 -5.25
(-1.13%)
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446.05

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NSE 05:30 | 01 Jan Inflame Appliances Ltd
OPEN 446.05
PREVIOUS CLOSE 465.25
VOLUME 5500
52-Week high 660.00
52-Week low 210.00
P/E
Mkt Cap.(Rs cr) 336
Buy Price 451.05
Buy Qty 500.00
Sell Price 472.00
Sell Qty 500.00
OPEN 446.05
CLOSE 465.25
VOLUME 5500
52-Week high 660.00
52-Week low 210.00
P/E
Mkt Cap.(Rs cr) 336
Buy Price 451.05
Buy Qty 500.00
Sell Price 472.00
Sell Qty 500.00

Inflame Appliances Ltd. (INFLAMEAPPLIAN) - Auditors Report

Company auditors report

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 2022 theStatement of Profit and Loss and Statement of cash flows for the year then ended andNotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the financialstatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act2013("the Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 and its loss and its cash flows forthe year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013.Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India(ICAI) together with the ethical requirements that arerelevant to our audit of the financial statements under the provisions of the Act and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believethattheauditevidencewe haveobtained is sufficient and appropriate to provide a basis for our opinion on the financialstatements.

Emphasis of matter

We draw attention to Note No. 28 Para 32 of the financial results regarding the impactof COVID-19 pandemic on the Company. The continuance of Covid 19 pandemic is causingeconomic impact globally. Management is of the view that there are no reasons to believethat the pandemic will have any significant impact on the ability of the company tocontinue as a going concern. With phase wise unlocking of restrictions its operationswere not materially impacted during the year 2021-22 and no significant impact on thecontinuity of operations of business of the company is envisaged due to covid 19 inforeseeable future."

Our opinion is not modified in respect of the matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statement of the current period. Keeping inview the materiality there is no key matter to be reported separately.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Director'sReport including Annexures to Director's Report Management Discussion and AnalysisBusiness Responsibility Report and Report on Corporate Governance but does not include thefinancial statements and our auditors' report thereon. The above-referred information isexpected 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 donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and take appropriate actions if required.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIALSTATEMENTS

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act read withrelevant rules. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management and board of director is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure "A" statement on the mattersspecified 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 bestof 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 theCompany 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 Statementdealt 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 theaforesaid financial statements comply with the Accounting Standards specified underSection 133 of the Act read with relevant Rule.

(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) In our opinion the managerial remuneration for the year ended March 31 2022 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofSection 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition.

ii. The Company did not have any long - term contracts including derivative contractsfor which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. a) The Management has represented that to the best of its knowledge and belief nofunds have been advanced or loaned or invested (either from borrowed funds or sharepremium 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 theunderstanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide 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 nofunds have been received by the Company from any person(s) or entity(ies) includingforeign entities ("Funding Parties") with the understanding whether recordedin writing or otherwise that the Company shall directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.

Based on the audit procedures performed that have been considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) contain anymaterial misstatement.

v. During the year company has neither paid any interim dividend nor proposed any finaldividend.

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT ON THE AUDIT OF THE FINANCIALSTATEMENT

(Referred to in paragraph 1 under heading ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date to the Members of Inflame AppliancesLimited on the financial statement of year ended 31st March 2022).

i. (a) A. The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.

B. The Company has generally maintained proper records showing full particulars ofIntangible assets.

(b) The Company is having a regular programme of physical verification of all PropertyPlant and Equipment which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. No material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us we report that thetitle deeds of all the immovable properties which are included under the head of propertyplant and equipment (other than properties where the company is the lessee and the leaseagreements are duly executed in favour of the lessee) disclosed in the financial statementare held in the name of the Company.

(d) The Company has not revalued its Property Plant and Equipment and intangibleassets during the year. Accordingly the provisions of clause 3(i)(d) of the Order are notapplicable.

(e) According to the information and explanations given to us there are no proceedingswhich have been initiated or are pending against the Company for holding benami propertyunder the Benami Transactions (Prohibition) Act 1988 (as amended in 2016) and rules madethereunder.

ii. (a) In our opinion the management has conducted physical verification of inventoryat reasonable intervals during the year. According to the information and explanationsgiven to us and based on the audit procedures performed by us we are of the opinion thatthe coverage and procedure of such verification by the management is appropriate.

According to the information and explanations given to us no material discrepancies of10% or more in the aggregate for each class of inventory between physical inventory andbook records were noticed on physical verification.

(b) In our opinion and according to the information and explanations given to usduring the year the Company has been sanctioned working capital limits in excess of Rs. 5crores in aggregate from a bank on the basis of security of current assets. However onpursuance of documents submitted to us the quarterly returns or statements filed by thecompany 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 ourexamination of the records of the Company the Company has not made any investmentsprovided guarantee or security or granted any advances in the nature of loans secured orunsecured to companies firms limited liability partnerships or any other parties duringthe year as such provisions of clause iii(a) to iii(f) are not applicable on the company.

iv. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not provided any loansinvestment guarantee and security which may be covered under section 185 and 186 of theCompanies Act 2013.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits or amount which deemed to be deposits. As such thedirectives issued by the Reserve Bank of India the provisions of Sections 73 to 76 or anyother relevant provisions of the Act and the rules framed thereunder are not applicable tothe Company.

No order has been passed with respect to Section 73 to 76 by the Company Law Board orNational Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

vi. The Company's turnover for preceding financial year hasn't exceeded the limitprescribed for maintenance of cost records as company's classification falls under table Bof rule 3 of Companies (Cost records and Audit) Rules2014.

vii. (a) According to records of the Company and information and explanation given tous the Company has generally been regular in depositing undisputed statutory duesincluding Goods and Services Tax provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues to the appropriate authorities. According to information andexplanation given to us there are no outstanding statutory dues as referred above as atthe last day of the financial year under audit for a period of more than six months fromthe date they became payable except the dues relating to the Labour Welfare Fund andLabour Welfare Fund which was outstanding as on 31.03.2022 has not been paid.

(b) According to the information and explanations given to us there is no due inrespect of income tax service tax sales tax goods and service tax customs duty andexcise duty value added tax which have not been deposited on account of any disputes.

viii. In our opinion and according to the information and explanations given to us theCompany has not surrendered or disclosed as income any transaction not recorded in thebooks 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 notapplicable.

ix. (a) In our opinion and according to the information and explanations given to usthe Company has not defaulted except temporary irregularity in repayment of loans or otherborrowings 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 ouraudit procedures we report that the Company has not been declared willful defaulter byany bank or financial institution or other lender.

(c ) In our opinion and according to the information and explanations given to us theterm loans were applied for the purposes for which the loans were obtained.

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the financial statements of the companywe report that no funds raised on shortterm basis have been used for long-term purposesby the Company.

(e) According to the information and explanations given to us the company does not havesubsidiaries associates and joint ventures. Accordingly provisions of clause 3(ix)(e) ofthe order is not applicable.

(f) According to the information and explanations given to us the company does not havesubsidiaries associates and joint ventures. Accordingly provisions of clause 3(ix)(f) ofthe order is not applicable.

x. (a) In our opinion and according to the information and explanations given to usthe 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) ofthe order are not applicable.

(b) In our opinion and according to the information and explanations given to us thecompany has made private placement of shares on preferential basis during the year and therequirements of section 42 and section 62 of the Companies Act 2013 have been compliedwith and the funds raised have been used for the purposes for which the funds were raisedthat is for repayment of Unsecured loans and other Working Capital requirements of thecompany. However company has not issued any or convertible debentures (fully partiallyor optionally convertible) during the year under consideration.

xi. (a) Based on examination of the books and records of the Company and according tothe information and explanations given to us considering the principles of materialityoutlined in Standards on Auditing we report that no fraud by the Company or on theCompany has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Companies Act 2013 has been filed by the auditorsin Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.

(c) As represented by the management there are no whistle blower complaints receivedby the company during the year. Accordingly Provisions of clause 3(xi)(c) of the Act arenot applicable.

xii. The Company is not a Nidhi Company. Accordingly provisions of clause 3(xii) ofthe Order are not applicable.

xiii. In our opinion the Company has complied with provisions of sections 177 and 188of Companies Act 2013 in respect of transactions with the related parties and the detailshave been disclosed in the Financial Statements as required by the applicable accountingstandards.

xiv. (a) In our opinion and based on our examination the Company has an internal auditsystem commensurate with the size and nature of its business.

(b) We have considered the Internal Auditors reports of the company issued till datefor the period under audit..

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with the directors or personsconnected with them covered under Section 192 of the Act. Accordingly provisions ofclause 3(xv) of the Order are not applicable.

xvi. (a) In our opinion and according to the information and explanations given to usthe Company is not required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934. Accordingly provisions of clause (xvi)(a) of the Order are notapplicable to the Company.

(b) According to the information and explanations provided to us the Company has notconducted any NonBanking Financial or Housing Finance activities therefore the Company isnot required to be registered under Section 45-IA of the Reserve Bank of India Act1934.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 regulationsmade by the Reserve Bank of India. Accordingly provisions of clause 3(xvi)(c) of theOrder are not applicable

(d) According to the information and explanations given to us the company does not havesubsidiaries associates and joint ventures and other entities as defined in the CoreInvestment Companies (Reserve Bank) Directions as such there is no group and accordinglyprovisions 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 hasincurred cash losses of Rs. 7.83 Lacs and Rs. 259.72 Lacs in the financial year and in theimmediately 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 thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report andthat Company is not capable of meeting its liabilities existing at the date of balancesheet 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 theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

xx. The company was not required to spend expenditure on Corporate Socialresponsibility under section 135 of the Act. Hence reporting requirement under clause20(xx)(a) and (b) of the order are not applicable.

.