Notes to Accounts of Inflame Appliances Ltd.

Mar 31, 2025

Provisions and contingent liabilities:

The Company creates a provision when there is present
obligation as a result of a past event that probably requires
an outflow of resources and a reliable estimate can be
made of the amount of the obligation. A disclosure for a
contingent liability is made when there is a possible
obligation or a present obligation that may, but probably

will not, require an outflow of resources. When there is
a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no
provision or disclosure is made.

Government Subsidy:

Government subsidy related to specific fixed assets is
reduced from the Gross value of the said asset. Capital
Investment subsidy from Government is shown as Capital
Reserve

Earning per share:

The basic and diluted earnings per share is computed by
dividing the net profit attributable to equity shareholders
for the year, by the weighted average number of equity
shares outstanding during the year.

Cash and Cash Equivalent:

The company recognizes the following items as a part of its
Cash and Cash equivalent in accordance with Accounting
Standard 3 “Cash Flow Statement”

i. Cash in Hand

ii. Balances with Bank

iii. Highly liquid securities/Deposits having maturity less

than 3 months

1. Term Loan from Tata Capital Taken Under Primary Security Over The Equipment of Borrower Already Hypothecated To Tata Capital Limited (For The
Existing Finance Facilities Availed by The Borrower from Tel, FACR to be Maintained At LSxAtAll Times, Carrying Roi of 11.5%(FIoating)Per Annum.
Issued Under Irrevocable and Personal Guarantee of Mr Mitya Kaushik, Mr. Unit Kaushik and Anita Kaushik.

2. Car Loan from HDFC Bank Is Secured by Hypothecation of Car for Which Loan Has Been Taken and Further Secured by Director’s Guarantee Carrying
Roi Of 7.24% Payable In 48 EMI''s.

3. Credit Facilities by HDFC Bank Ltd. Having Floating Roi Ranging from 10.6% To 12.34% and secured Against Primary Security of Cash Margin In
Form of Fdr Against Lc, Bg, Plant & Machinery Etc. Personal Guarantee of The Promoters and Collateral Security As Detailed Below

4. Honda City Car Loan from HDFC Bank in Panclikula Is Secured by Hypothecation of Car for Which Loan Has Been Taken. Carry ing Roi of 9.06%
Payable in 48 EMI’s.

5. Swift Dzire Car Loan from ICICI Bank Isis Secured by Hypothecation of Car for Which Loan Has Been Taken. Carrying Roi of 7.80% Payable in 60
EMI’s.

6. Loan from Tata Capital Is Secured Under CGTMSE Scheme for 50% Guarantee Coverage and Secured by Personal Guarantee of Mr Amit Kaushik and
Mr Aditya Kaushik.

7. Honda City Car Loan from HDFC Bank in Hyderabad Secured by Hypothecation of Car for Which Loan Has Been Taken. Carrying Roi of 9.08% Payable
in 48 EMI’s.

8. Breeza Car Laon from HDFC Bank Ltd Is Secured by Hpothecation Against Brezza Carcarrying Roi 8.19% Per Annum in Total 40 installments

9. Royal Enfiled Loan from HDFC Bank Is Secured by Hypothecation Against Royal Enfield Bike Carrying Roi 15.75% Per Annum in Total 36 installments

10. Innova Crysta Loan from Yes Bank Is Secured by Hypothecation of Innova Crysta Carrying Roi 8.37% Per Annum in Total 48 installments

11. Mahindra Vehicle Pickup from HDFC Bank Is Secured by Hypothecation of Mahindra Vehical Pickup Carrying Roi 8.51% Per Annum in Total 48
installments

12. Kia Seltos Car Laon from Union Bank of India Is Secured by Hpothecation Against Brezza Car Carrying Roi 8.50% Per Annum Payable in Total 84
installments

13. Term Loan from Tata Capital Carrying Roi of 11.5%(Floating) Per Annum. Issued Under Irrevocable and Personal Guarantee of Mr Aditya Kaushik, Mr
Amit Kaushik and Anita Kaushik.

14. WAGONR Car Loan from HDFC Bank Is Secured by Hypothecation of Car for Which Loan Has Been Taken Payable in 60 EMI’s.

15. Unsecured Loan from Director Are Taken Without Interest Subject to Revision from Time to Time and Is Repayable on Demand. However Same Has
Been Taken to Meet Business Requirement on Long Term Basis.

Note- 5 Other Longterm Liabilities

1. Car Loan from HDFC Bank is Secured by Hypothecation of Car for Which Loan Has Been Taken and Further Secured by Director''s Guarantee Carrying
Floating Roi Of 7.24% Payable in 48 EMI’s.

2. Extension of Second Ranking Charge Over Existing Primary & Collateral Securities including Mortgage in Fa\’our of Bank as Detailed in Note 8.
Carrying Floating Roi @ 8.25% Repayable in 4 Years.

3. Swift Dzire Car Loan from ICICI Bank is Secured by Hypothecation of Car for Which Loan Has Been Taken. Carrying Roi of 7.80% Payable in 60 EMI''s.

4. Loan from IDFC First Bank is Payable in 48 Equal installments.

5. Honda City Car Loan from HDFC Bank is Secured by Hypothecation of Car for Which Loan Has Been Taken. Carrying Roi of 9.06% Payable in 48
EMI’s.

6. Loan from Tata Capital is Secured by Hypothecation Against Specific Machinery for Which Loan Has Been Taken and Escrow of Receivable of The
Borrower from HSIL in The form and Manner As Acceptable TOTCFSL Carrying Roi Of 11% Payable in 60 EMI''s.

7. Honda City Car Loan from HDFC Bank is Secured by Hypothecation of Car for Which Loan Has Been Taken. Carrying Roi of 9.08% Payable in 48
EMI''s.

Notes Forming Part of The Financial Statements

8. Loan from Tata Capital is Secured by Hypothecation of Machinery Purchased Out ofTcfsl Fund and Escrow of Receivables of The Borrower from HSIL
in. The form and Manner as Acceptable To TCFSL. Carrying Roi of9.25% Repayable in 4 Years.

9. Term Loan from Tata Capital Carrying Roi of 11.5%(Floating) Per Annum, issued Under Irrevocable and Personal Guarantee ofMrAditya Kaushik, Mr
Amit Kaushik and Anita Kaushik.

10. Term Loan from Tata Capital Carrying Roi of 11.5%(Floating) Per Annum, and Secured Under Irrevocable and Personal Guarantee.

11. Breeza Car Laon from HDFC Bank Ltd is Secured by Hpothecation Against Brezza Car Carrying Roi 8.19% Per Annum in Total 40 installments

12. Royal Enfiled Loan from HDFC Bank is Secured by Hypothecation Against Royal Enfield Bike Carrying Roi 15.75% Per Annum in Total 36 installments

13. Innova Crysta Loan from Yes Bank is Secured by Hypothecation of innova Crvsta Carrying Roi 8.37% Per Annum in Total 48 installments

14. Mahindra Vehicle Pickup from HDFC Bank is Secured by Hypothecation ofMahindra Vehical Pickup Carrying Roi 8.51% Per Annum in Total 48
installments

15. HDFC Term Loan Carrying Roi 7.75%> Per Annum in Total 84 installments

16. Kia Seltos Car Laon from Union Bank of India is Secured by Hpothecation Against Brezza Car Carrying Roi 8.50% Per Annum Payable in Total 84
installments

17. Credit Facilities by HDFC Bank Ltd. Having Floating Roi Ranging from 10.6% To 12.34% and Secured Against Primary Security ofCashMargin in form of FDR Against
LC, BG, Debtors, Stock, Plant & Machinery Etc. Personal Guarantee of The Promoters and Collateral Security As Detailed Below: -

Note- 43 to 53

43) The Company has utilised the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date and no default has
been made regarding the same.

44) The title deeds of the immovable property as appearing in the books of accounts are in the name of the company.

45) The Company has not revalued any of its Property, Plant & Equipments or intangible Assets during the current year.

46) The Company has not given any loan and advanes to its promoters, Directors, KMPs or any related parties during the current year.

47) As per information and explanation given us by management, no proceedings has been intitated or pending against the Company for holding any Benami property under
Benami Transactions (Prohibition) Act, 1988.

48) As per information and explanation given us by management, Company is not declared as willful defaulter by any Bank or financial institution or any other lender.

49) As per information and explanation given us by management, Company has not inccured any transactions with Companies struck off under section 248 of the Companies
Act 2013 or section 560 of Companies Act 1956.

50) As per information and explanation given us by management,No charge is pending for registration before the ROC, beyond the specified time period.

51) As per information and explanation given us by management, Company is not having any transaction which is not recorded in books of accounts of Company which has
been surrendered in tax assessments under income Tax Act 1961.

52) As per the limits prescribed under section 135 of Companies Act 2013, Corporate Social Responsbility clause is not applicable on the company during current Financial
Year.

53) As per information and explanation given us by management, Company has not dealt/traded/invested in the Crypto Currency or Virtual Currency during current Financial
year.

* Explanation for Change in Ratio (for more than 25% in comparison with last year)

Note- 57) Previous Year Figures Have Been Classified as Necessary

For and on The Behalf of Board of Directors

Amit Kaushik Zalak Shah Aditya Kaushik Ashwani Kumar Goel

CFO/CEO (Company Secretary) (Managing Director) (Director)

Pan - a****02*7* Memb. No.: A56904 DIN-06790052 DIN-08621161

---

Mar 31, 2024

XIII. Provisions and contingent liabilities:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

XIV. Government Subsidy:

Government subsidy related to specific fixed assets is reduced from the Gross value of the said asset. Capital Investment subsidy from Government is shown as Capital Reserve

XV. Earning per share:

The basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year.

XIV. Cash and Cash Equivalent:

The company recognizes the following items as a part of its Cash and Cash equivalent in accordance with Accounting Standard 3 “Cash Flow Statement”

i. Cash in Hand

ii. Balances with Bank

iii. Highly liquid securities/Deposits having maturity less than 3 months

2. CAR LOAN FROM HDFC BANK IS SECURED BY HYPOTHECATION OF CAR FOR WHICH LOAN HAS BEEN TAKEN AND FURTHER SECURED BY DIRECTOR''S GUARANTEE CARRYING ROI 0F 7.24% PAYABLE IN 48 EMIs.

3. Credit Facilities BY HDFC BANK LTD. FLOATING CARRYING ROI @ 8.8%, IS SECURED AGAINST HYPOTHETICATION OF BUILDING CONSTRUCTION & MACHINERY,STOCK,DEBTORS, CASH MARGIN FOR LC,BG,PERSONAL GUARANTEE OF THE PROMOTERS AND ALL COLLATERAL CONFIRMED LC BACKED BY DISCOUNTING ,PERSONAL GUARANTEE OF THE PROMOTERS AND COLLATERAL OWNERS, FDR OF LC LIMIT OF 680 LACS,INDUSTRIAL PROPERTY, FDR AS DSRA FOR NEW TERM LOAN, INDUSTRIAL CONFIRMED LC BACKED BILLS FOR DISCOUNTING, PROPERTY AT FACTORY LAND AND BUILDING COMPRISING IN INDUSTRIAL VILLAGE BAGWALI, BLOCK RAIPUR RANI,NH-73, KHASRA NO 40/14-15-16-17/1134005 RAIPUR RANI, IN THE NAME OF THE COMPANY AND INDUSTRIA PROPERTY AT PLOT NO 10 AND 21 TELANGANA IP EMC MAHESHWARAM 500076 RANGAREDDY DISTRICT.

4. EXTENSION OF SECOND RANKING CHARGE OVER EXISTING PRIMARY & COLLATERAL SECURITIES INCLUDING MORTGAGE IN FAVOUR OF BANK AS DETAILED IN NOTE 8. CARRYING ROI @ 8.25% REPAYABLE IN 4 YEARS.

5. SWIFT DZIRE CAR LOAN FROM ICICI BANK IS IS SECURED BY HYPOTHECATION OF CAR FOR WHICH LOAN HAS BEEN TAKEN. CARRYING ROI OF7.80% PAYABLE IN 60 EMI''S.

6. LOAN FROM TATA CAPITAL IS SECURED BY HYPOTHECATION AGAINST SPECIFIC MACHINERY FOR WHICH LOAN HAS BEEN TAKEN AND ESCROW OF RECEIVABLE OF THE BORROWER FROM HSIL IN THE FORM AND MANNER AS ACCEPTABLE TO TCFSL CARRYING ROI 0F 11% PAYABLE IN 60 EMIs.

7. LOAN FROM TATA CAPITAL IS SECURED BY HYPOTHECATION OF MACHINERY PURCHASED OUT OF TCFSL FUND AND ESCROW OF RECEIVABLES OF THE BORROWER FROM HSIL IN THE FORM AND MANNER AS ACCEPTABLE TO TCFSL. CARRYING ROI OF 9.25% REPAYABLE IN 4 YEARS.

8. BREEZA CAR LAON FROM HDFC BANK LTD IS SECURED BY HPOTHECATION AGAINST BREZZA CAR CARRYING ROI 8.19% PER ANNUM IN TOTAL 40 INSTALLMENTS.

9. ROYAL ENFILED LOAN FROM HDFC BANK IS SECURED BY HYPOTHECATION AGAINST ROYAL ENFIELD BIKE CARRYING ROI 15.75% PER ANNUM IN TOTAL 36 INSTALLMENTS.

10. INNOVA CRYSTA LOAN FROM YES BANK IS SECURED BY HYPOTHECATION OF INNOVA CRYSTA CARRYING ROI 8.37% PER ANNUM IN TOTAL 48 INSTALLMENTS.

11. MAHINDRA VEHICLE PICKUP FROM HDFC BANK IS SECURED BY HYPOTHECATION OF MAHINDRA VEHICAL PICKUP CARRYING ROI 8.51% PER ANNUM IN TOTAL 48 INSTALLMENTS.

12. KIA SELTOS CAR LAON FROM UNION BANK OF INDIA IS SECURED BY HPOTHECATION AGAINST BREZZA CAR CARRYING ROI 8.50% PER ANNUM PAYABLE IN TOTAL 84 INSTALLMENTS.

13. TERM LOAN FROM TATA CAPITAL CARRYING ROI OF 11%(FLOATING) PER ANNUM.

14. WAGON R CAR LOAN FROM HDFC BANK IS SECURED BY HYPOTHECATION OF CAR FOR WHICH LOAN HAS BEEN TAKEN PAYABLE IN 60 EMIs.

15. UNSECURED LOAN FROM DIRECTOR ARE TAKEN WITHOUT INTEREST SUBJECT TO REVISION FROM TIME TO TIME AND IS REPAYABLE ON DEMAND. HOWEVER SAME HAS BEEN TAKEN TO MEET BUSINESS REQUIREMENT ON LONG TERM BASIS.

1. CAR LOAN FROM HDFC BANK IS SECURED BY HYPOTHECATION OF CAR FOR WHICH LOAN HAS BEEN TAKEN AND FURTHER SECURED BY DIRECTOR''S GUARANTEE CARRYING FLOATING ROI 0F 7.24% PAYABLE IN 48 EMIs.

2. EXTENSION OF SECOND RANKING CHARGE OVER EXISTING PRIMARY & COLLATERAL SECURITIES INCLUDING MORTGAGE IN FAVOUR OF BANK AS DETAILED IN NOTE 8. CARRYING FLOATING ROI @ 8.25% REPAYABLE IN 4 YEARS.

3. SWIFT DZIRE CAR LOAN FROM ICICI BANK IS IS SECURED BY HYPOTHECATION OF CAR FOR WHICH LOAN HAS BEEN TAKEN. CARRYING ROI OF7.80% PAYABLE IN 60 EMI''S.

4. LOAN FROM IDFC FIRST BANK IS PAYABLE IN 48 EQUAL INSTALLMENTS.

5. LOAN FROM IDFC FIRST BANK IS PAYABLE IN 48 EQUAL INSTALLMENTS.

6. LOAN FROM TATA CAPITAL IS SECURED BY HYPOTHECATION AGAINST SPECIFIC MACHINERY FOR WHICH LOAN HAS BEEN TAKEN AND ESCROW OF RECEIVABLE OF THE BORROWER FROM HSIL IN THE FORM AND MANNER AS ACCEPTABLE TO TCFSL CARRYING ROI 0F 11% PAYABLE IN 60 EMIs.

7. XUV CAR LOAN FROM MAHINDRA & MAHINDRA FINANCIAL SERVICES LIMITED IS SECURED BY HYPOTHECATION OF VEHICLE FOR WHICH LOAN HAS BEEN TAKEN AND IS CARRYING ROI OF 9.75% PAYABLE IN 36 EMI''S.

8. LOAN FROM TATA CAPITAL IS SECURED BY HYPOTHECATION OF MACHINERY PURCHASED OUT OF TCFSL FUND AND ESCROW OF RECEIVABLES OF THE BORROWER FROM HSIL IN.THE FORM AND MANNER AS ACCEPTABLE TO TCFSL. CARRYING ROI OF 9.25% REPAYABLE IN 4 YEARS.

9. TERM LOAN FROM TATA CAPITAL CARRYING ROI OF 11(FLOATING)% PER ANNUM.

10. TATA CAPITAL TOP UP LOAN CARRYING ROI OF 11(FLOATING)% PER ANNUM.

11. BREEZA CAR LAON FROM HDFC BANK LTD IS SECURED BY HPOTHECATION AGAINST BREZZA CAR CARRYING ROI 8.19% PER ANNUM IN TOTAL 40 INSTALLMENTS.

12. ROYAL ENFILED LOAN FROM HDFC BANK IS SECURED BY HYPOTHECATION AGAINST ROYAL ENFIELD BIKE CARRYING ROI 15.75% PER ANNUM IN TOTAL 36 INSTALLMENTS.

13. INNOVA CRYSTA LOAN FROM YES BANK IS SECURED BY HYPOTHECATION OF INNOVA CRYSTA CARRYING ROI 8.37% PER ANNUM IN TOTAL 48 INSTALLMENTS.

14. MAHINDRA VEHICLE PICKUP FROM HDFC BANK IS SECURED BY HYPOTHECATION OF MAHINDRA VEHICAL PICKUP CARRYING ROI 8.51% PER ANNUM IN TOTAL 48 INSTALLMENTS.

15. HDFC TERM LOAN CARRYING ROI 7.75% PER ANNUM IN TOTAL 84 INSTALLMENTS.

16. KIA SELTOS CAR LAON FROM UNION BANK OF INDIA IS SECURED BY HPOTHECATION AGAINST BREZZA CAR CARRYING ROI 8.50% PER ANNUM PAYABLE IN TOTAL 84 INSTALLMENTS.

17. Credit Facilities BY HDFC BANK LTD. CARRYING ROI @ 8.8%, IS SECURED AGAINST HYPOTHETICATION OF BUILDING CONSTRUCTION & MACHINERY,STOCK,DEBTORS, CASH MARGIN FOR LC,BG,PERSONAL GUARANTEE OF THE PROMOTERS AND ALL COLLATERAL CONFIRMED LC BACKED BY DISCOUNTING ,PERSONAL GUARANTEE OF THE PROMOTERS AND COLLATERAL OWNERS, FDR OF LC LIMIT OF 680 LACS,INDUSTRIAL PROPERTY, FDR AS DSRA FOR NEW TERM LOAN, INDUSTRIAL CONFIRMED LC BACKED BILLS FOR DISCOUNTING, PROPERTY AT FACTORY LAND AND BUILDING COMPRISING IN INDUSTRIAL VILLAGE BAGWALI, BLOCK RAIPUR RANI,NH-73, KHASRA NO 40/14-15-16-17/1134005 RAIPUR RANI, IN THE NAME OF THE COMPANY AND INDUSTRIA PROPERTY AT PLOT NO 10 AND 21 TELANGANA IP EMC MAHESHWARAM 500076 RANGAREDDY DISTRICT.

18. WAGON R CAR LOAN FROM HDFC BANK IS SECURED BY HYPOTHECATION OF CAR FOR WHICH LOAN HAS BEEN TAKEN PAYABLE IN 60 EMIs.

18) The Company has utilised the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date and no default has been made regarding the same.

19) The title deeds of the immovable property as appearing in the books of accounts are in the name of the company.

20) The Company has not revalued any of its Property, Plant & Equipments or Intangible Assets during the current year.

21) The Company has not given any loan and advanes to its promoters, Directors, KMPs or any related parties during the current year.

22) As per information and explanation given us by management, no proceedings has been intitated or pending against the Company for holding any Benami property under Benami Transactions (Prohibition) Act, 1988.

23) As per information and explanation given us by management, Company is not declared as willful defaulter by any Bank or financial Institution or any other lender.

24) As per information and explanation given us by management, Company has not inccured any transactions with Companies struck off under section 248 of the Companies Act 2013 or section 560 of Companies Act 1956.

25) As per information and explanation given us by management,No charge is pending for registration before the ROC, beyond the specified time period.

26) As per information and explanation given us by management, Company is not having any transaction which is not recorded in books of accounts of Company which has been surrendered in tax assessments under Income Tax Act 1961.

27) As per the limits prescribed under section 135 of Companies Act 2013, Corporate Social Responsbility clause is not applicable on the company during current Financial year.

28) As per information and explanation given us by management, Company has not dealt/traded/invested in the Crypto Currency or Virtual Currency during current Financial year.

32) Previous Year Figures Have Been Classified As Necessary.

CERTIFIED IN TERMS OF OUR SEPARATE For and on the behalf of Board of Directors REPORT OF EVEN DATE ANNEXED

ADITYA KAUSHIK ASHWANI KUMAR GOEL

FOR GANDHI MINOCHA & CO., (MANAGING DIRECTOR) (WHOLE TIME

DIRECTOR)

CHARTERED ACCOUNTANTS, (DIN - 06790052) (DIN - 08621161)

F.R.N. 000458N

(GOURAV CHHIBBERR) ZALAK SHAH AMIT KAUSHIK

PARTNER (COMPANY SECRETARY) (CEO / CFO)

M.NO. 513968 (Membership No.: A56904)

UDIN: 24513968BKCNSJ6404

PLACE : PANCHKULA DATE : 29.05.2024

---

Mar 31, 2018

b. Terms / rights attached to equity shares

Each holder of equity share is entitled to one vote per share with a right to receive per share dividend by the Company when declared. In the event of liquidation the equity shareholders will be entitled to receive remaining assets of the Company after distribution of all preferential amounts in the proportion to the number of equity shares held by them.

NOTE NO. 1 - The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to Micro and Small Enterprises have not been made.

NOTE NO. 2 - There is no contingent liability as on March 31, 201 8.

NOTE NO. 3 - Earnings in Foreign Exchange - Nil

NOTE NO. 4 - Expenditure in Foreign Exchange - Nil

NOTE NO. 5 - Loss in Foreign Currency Fluctuation - Rs. 148492.00

NOTE NO. 6 - During the year ended March 31, 2018 the revised Schedule VI notified under the Companies Act 1956 has become applicable to the company for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for the preparation of financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

NOTE NO. 7 - Figures of previous year have been regrouped reclassified and recast wherever considered necessary.