Notes to Accounts of Gorani Industries Ltd.

Mar 31, 2024

O] Provisions, Contingent Liabilities and Assets:

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised forfuture operating losses.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Disclosure is not made if the possibility of an outflow of future economic benefits is remote.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control

of the entity. The Company does not recognise a contingent asset.

P] Research & Development:

Capital expenditure on research and development is treated in the same way as expenditure on Fixed Assets. The revenue expenditure on Research & Development is written off in the year in which it is incurred.

Q] Impairment:

The Company on an annual basis makes on assessment of any indicator that may lead to impairment of assets. If any such indication exists, the company estimates the recoverable amount of the assets. If such recoverable amount is less than the carrying amount, then the carrying amount is reduced to its recoverable amount by treating the difference between them, as impairment loss and the same is charged to profit & loss account. Based on the aforesaid review, the Company is of opinion that there is no impairment of any of its fixed assets as at 31st March 2024.

R] Fair Value Measurement:

The Company classifies the fair value of its financial instruments in the following hierarchy, based on the inputs used in their valuation:

i) Levehl The fair value of financial instruments quoted in active markets is based on their quoted closing price at the balance sheet date.

ii) Level:2 The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques using observable market data. Such valuation techniques include discounted cash flows, dealer quotes for similar instruments and use of comparable arm''s length transactions.

iii) Level:3 The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on observable market data (unobservable inputs). When the fair value of unquoted instruments cannot be measured with sufficient reliability, the Company carries such instruments at cost less impairment, if applicable.

S] Leases (IND AS 116)

The Company assesses whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease if the contract conveys the right to

control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company considers whether (i) the contract involves the use of identified asset; (ii) the Company has substantially all of the economic benefits from the use of the asset through the period of lease and (iii) the Company has right to direct the use of the asset.

Asa lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the site on which it is located, less any lease incentives received.

The right-to-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-to-use asset or the end of the lease term. The estimated useful lives of right-to-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-to-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company''s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option.

The Company has elected not to recognise right-to-use assets and lease liabilities for short term leases that

have a lease term of less than or equal to 12 months with no purchase option and assets with low value leases. The Company recognises the lease payments associated with these leases as an expense in statement of profit and loss over the lease term. The related cash flows are classified as operating activities.

T] Offsettingfinancial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company orthe counterparty.

U] Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs rupeesupto two decimal places.

V] Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.

36. Financial Risk Management a) Market risk

Market risk is the riskthat changes in market prices such as commodity prices risk, foreign exchanges rates and interest rates which will affect the company''s financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables.

The company is in the business of production, manufacturing and dealing in kitchen appliances and kitchenware which is one such sector within the overall household segmentthat has been in the limelight in recent past.

The company is in the process of making and implementing the strategies to capitalize available opportunities and minimizing the threats to ladder products across capacities, formats and prices. In addition to broad basing the product by customizing the model structure with added features the company will put its every effort to maximize the internal accruals by way of input tax credit available in the GST law and by optimizing the product common costs of manufacturing and selling as well so as to enable it to sustain profitability.

Changing household and commercial lifestyles, economical availability of electricity, rising concerns regarding eco-friendlv

b) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess financial reliability of customer, taking into account the financial condition, and ageing of accounts receivable. As such the company is in a comfort zone as it sells mainly to its sister concern.

c) Liquidity Risk

The company''s approach to managing liquidity includes strategic approach as far as possible that it will have sufficient liquidity to meet its liabilities as and when they are due, under both normal and stressed conditions without incurring the unacceptable losses or causing risk or damage to the company''s reputations. In view of satisfying Current ratio the company does not expect poor liquidity position in this scenario.

d) Currency Risk

Since the company has have purchases from China which have foreign currency involvement and flexibility attached to it, however the same is not a threat, due to increasing demand and reputed products of the company coupled with speedy recovery from debtors. The company is well set to bear the short term losses on foreign rate fluctuation which is cushioned by the optimum inventory level maintained by the company by keeping good advance level with the suppliers.

37. Capital Management

The Company manages its capital to ensure that it will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the equity balance.The Company''s management manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of thefinancial covenants.

42. Additional Regulatory Information

1. The title deeds, comprising all the immovable properties are held in the name of company and no immovable property is jointly held with others.

2. The company has not revalued its Property, Plant and Equipment.

3. The company has not granted any Loans or Advances granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

4. No proceeding have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

5. The company is not declared wilful defaulter by any bankorfinancial Institution or other lender.

6. The company has not entered into transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

7. The company does not have any subsidiary.

8. The Company has decided to withdraw/cancel the Scheme of Amalgamation between the Blow Hot Kitchen Appliances Private Limited ("Transferor Company") and Gorani Industries Limited ("Transferee Company") and their respective shareholders in the substantial interest of the stakeholders of the Company

9. (a) 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, whether, 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) 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, whether, 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.

10. The Company has not traded or invested in Crypto currency or Virtual Currency duringthe financial year.

11. The Company has no transactions relating to previously unrecorded income that have been surrendered or disclosed as income duringthe year in the tax assessments underthe IncomeTaxAct, 1961(43 of 1961).

44. Contingent Liabilities and Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.Nil. (Previous Year Rs. Nil).

45. In the opinion of the management and to the best of their knowledge and belief the value of realization of current assets, loans and advances in the ordinary course of business will not be less than the amount at which they are stated in the balance sheet.

46. As per Ind AS 108 Operating Segments, there is no reportable segments and therefore no disclosures are made.

c) Expenditure in foreign currency

Foreign Travelling - -

d) Earning in foreign exchange - -

48. The Balances in the accounts of debtors, creditors, loans, advances and others are subject to confirmation and reconciliation. But no confirmation is called in last three year by the company.

49. The previous yearfigures have been regrouped/reclassified, wherever necessary to confirm to the current yearfigures.

For and on behalf of the Board As per our report of even date

ForSANDEEP SURENDRA JAIN & CO.

Chartered Accountants Firm Reg. No.: 010172C

(Sanjay Kumar Gorani) (Geet Gorani) (Sachi Samaria) (Arpit Garg) CA. Seema Vijayvargiya

Managing Director Director Company Secretary C.F.O. Partner

DIN00055531 DIN: 08364525 _{M No} . 409574

UDIN : 24409674BKFOJV6026

Place: Indore Date : 30^th May, 2024

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Mar 31, 2023

O] Provisions, Contingent Liabilities and Assets:

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Disclosure is not made if the possibility of an outflow of future economic benefits is remote.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control

of the entity. The Company does not recognise a contingent asset.

P] Research & Development:

Capital expenditure on research and development is treated in the same way as expenditure on Fixed Assets. The revenue expenditure on Research & Development is written off in the year in which it is incurred.

Q] Impairment :

The Company on an annual basis makes on assessment of any indicator that may lead to impairment of assets. If any such indication exists, the company estimates the recoverable amount of the assets. If such recoverable amount is less than the carrying amount, then the carrying amount is reduced to its recoverable amount by treating the difference between them, as impairment loss and the same is charged to profit & loss account. Based on the aforesaid review, the Company is of opinion that there is no impairment of any of its fixed assets as at 31st March 2023.

R] Fair Value Measurement:

The Company classifies the fair value of its financial instruments in the following hierarchy, based on the inputs used in their valuation:

i) Level:1 The fair value of financial instruments quoted in active markets is based on their quoted closing price at the balance sheet date.

ii) Level:2 The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques using observable market data. Such valuation techniques include discounted cash flows, dealer quotes for similar instruments and use of comparable arm''s length transactions.

iii) Level:3 The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on observable market data (unobservable inputs). When the fair value of unquoted instruments cannot be measured with sufficient reliability, the Company carries such instruments at cost less impairment, if applicable.

S] Leases (IND AS 116)

The Company assesses whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease if the contract conveys the right to

control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company considers whether (i) the contract involves the use of identified asset; (ii) the Company has substantially all of the economic benefits from the use of the asset through the period of lease and (iii) the Company has right to direct the use of the asset.

As a lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the site on which it is located, less any lease incentives received.

The right-to-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-to-use asset or the end of the lease term. The estimated useful lives of right-to-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-to-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company''s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option.

The Company has elected not to recognise right-to-use assets and lease liabilities for short term leases that

have a lease term of less than or equal to 12 months with no purchase option and assets with low value leases. The Company recognises the lease payments associated with these leases as an expense in statement of profit and loss over the lease term. The related cash flows are classified as operating activities.

T] Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counter party.

U] Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs rupees up to two decimal places.

V] Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.

35. Financial Risk Management a) Market risk

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchanges rates and interest rates which will affect the company''s financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables.

The company is in the business of production, manufacturing and dealing in kitchen appliances and kitchenware which is one such sector within the overall household segment that has been in the limelight in recent past.

The company is in the process of making and implementing the strategies to capitalize available opportunities and minimizing the threats to ladder products across capacities, formats and prices. In addition to broad basing the product by customizing the model structure with added features the company will put its every effort to maximize the internal accruals by way of input tax credit available in the GST law and by optimizing the product common costs of manufacturing and selling as well so as to enable it to sustain profitability in the market.

Changing household and commercial lifestyles, economical availability of electricity, rising concerns regarding eco-friendly appliances are expected to be the key drivers of the kitchen appliances market size. Development of e-commerce distribution channels, emergence of information technology and the other smart technologies will support the overall kitchen appliances market again supported by after sell support services.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. According to the company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used that represents management''s assessment of the reasonably possible change in interest rates.

As as process of merger with our associate company the brand name owner is going and it will give a sort of expansion in the near future but with lesser contingent liabilities as the merging company carries good networth. The company''s approach to managing liquidity is to ensure as far as possible that it will have sufficient liquidity to meet its liabilities as when they are due, under both normal and stressed conditions without incurring the unacceptable losses or risking damage to the company''s reputations. The company does not expect poor liquidity position in this scenario. Also the company have the system of properly controlled and speedy recovery from debtors generally.

Since the company has have purchases from China which have foreign currency involvement and flexibility attached to it, however the same is not a threat, due to increasing demand and reputed products of the company coupled with speedy recovery from debtors. The company is well set to bear the short term losses on foreign rate fluctuation which is cushioned by the optimum inventory level mentioned by the company by keeping good advance level with the suppliers.

36. Capital Management

The Company manages its capital to ensure that it will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the equity balance.The Company''s management manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company got its authorized capital incresed from 6Cr. to 18Cr. keeping in mind the Post-merger capital adequacy ratio.

41. Additional Regulatory Information

1. The title deeds, comprising all the immovable properties are held in the name of company and no immovable property is jointly held with others.

2. The company has not revalued its Property, Plant and Equipment.

3. The company has not granted any Loans or Advances granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

4. No proceeding have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

5. The company is not declared wilful defaulter by any bank or financial Institution or other lender.

6. The company has not entered into transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

7. The company does not have any subsidiary.

8. The company has filed scheme of amalgamation between Blow Hot Kitchen Appliances Private Limited and Gorani Industries Limited to BSE Limited for obtaining no objection letter pursuant to Regulation-37 of SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015 which is pending till date.

9. (a) 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, whether, 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) 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, whether, 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.

10. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

43. Contingent Liabilities and Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.Nil. (Previous Year Rs. Nil).

44. In the opinion of the management and to the best of their knowledge and belief the value of realization of current assets, loans and advances in the ordinary course of business will not be less than the amount at which they are stated in the balance sheet.

45. As per Ind AS 108 Operating Segments, there is no reportable segments and therefore no disclosures are made.

47. The Balances in the accounts of debtors, creditors, loans, advances and others are subject to confirmation and reconciliation. But no confirmation is called in last three year by the company.

48. The previous year figures have been regrouped / reclassified, wherever necessary to confirm to the current year figures.

For and on behalf of the Board As per our report of even date

For SANDEEP SURENDRA JAIN & CO.

Chartered Accountants Firm Reg. No. : 010172C

(Sanjay Kumar Gorani) (Nakul Gorani) (Geet Gorani) (Sachi Samaria) (Arpit Garg) CA. Seema Vijayvargiya

Managing Director Whole Time Director Additional Director Company Secretary C.F.O. Partner

DIN :- 00055531 DIN : 06543317 DIN : 08364525

Place : Indore ^UDIN : ²³⁴⁰⁹6^74BGXCXH2498

Date : 30^th May, 2023

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Mar 31, 2015

Note: 1 Segment Reporting Policies

Identification of segments:

a] Primary Segments

Business segment: The Company has only one segment of Home Appliances and the products considered as part of the segment are LPG Stove, Range hood (Chimney) and Gas Geysers. Since inherent nature of all activities of the company is governed by the same set of risks and returns and also all the products are falling in the same category in trade parlance therefore as per the guidelines of the AS-17 no primary segment is reporting required for the year.

b] Secondary Segment

Geographical Segment: The analysis of geographical segment is based on the geographical location of the customers. The following is the distribution of the Company's consolidated sales by geographical market:-

Note: 2 Disclosure of Related party /Related Party Transactions

Name of the related parties and relationship

(a) Associates Companies

M/s Blow Hot Kitchen Appliances Private Limited.

M/s Indore Paper Krafters Pvt. Ltd.

M/s Valor Hitech Pvt. Ltd.

(b) Key Management Personnel and their relatives

Mr. Sanjay Gorani Managing Director

Mr. Anil Gorani Whole Time Director

Mr. Nakul Gorani Director

Mr. Narendra Gorani Relative of Director

Mrs. Manju Gorani Relative of Director

Mr. C.S.Sharma CFO

(c) The transactions entered into with the related parties during the year along with related balances as at 31st march 2015 are as under:

Note: 3

Contingent Liabilities

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. (Previous Year Rs. NIL)

Note: 4

In the opinion of the management and to the best of their knowledge and belief the value of realization of current assets, loans and advances in the ordinary course of business will not be less than the amount at which they are stated in the balance sheet. No provision has been made for the long outstanding debtors considered doubtful because it is still under negotiation stage.

Note: 5

Additional Information pursuant to provisions of paragraph 5 (VIII) of part II of schedule III to the companies act as certified by the Directors:

Note: 6

The Balances in the accounts of debtors, creditors, loans, advances and others are subject to confirmation and reconciliation. But no confirmation is called in last year by the company.

Note: 7

The previous year figures have been regrouped / reclassified, wherever necessary to confirm to the current year figures.

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Mar 31, 2014

Note: 1 Segment Reporting Policies

Identification of segments: a] Primary Segments

Business segment: The Company has only one segment of Home Appliances and the products considered as part of the segment are LPG Stove, Range hood (Chimney) and Gas Geysers. Since inherent nature of all activities of the company is governed by the same set of risks and returns and also all the products are falling in the same category in trade parlance therefore as per the guidelines of the AS-17 no primary segment is reporting required for the year.

Name of the related parties and relationship

(a) Associates Companies

M/s Blow Hot Kitchen Appliances Private Limited.

(b) Key Management Personnel and their relatives

Mr. Sanjay Gorani Managing Director

Mr. Anil Gorani Chairman

Mr. Nakul Gorani Director

Mr. Narendra Gorani Relative of Director Mrs. Manju Gorani Relative of Director

Note: 2

Contingent Liabilities

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. (Previous Year Rs. NIL)

Note: 3

In the opinion of the management and to the best of their knowledge and belief the value of realization of current assets, loans and advances in the ordinary course of business will not be less than the amount at which they are stated in the balance sheet. No provision has been made for the long outstanding debtors considered doubtful because it is still under negotiation stage.

Note: 4

Additional Information pursuant to provisions of paragraph 3, 4B, 4C of part II of schedule VI to the companies as certified by the Directors:

Note: 5

The Balances in the accounts of debtors, creditors, loans, advances and others are subject to confirmation and reconciliation. But no confirmation is called in last three year by the company.

Note: 6

The previous year figures have been regrouped / reclassified, wherever necessary to confirm to the current year figures.

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Mar 31, 2013

NOTE: 1

SEGMENT REPORTING POLICIES

Identification of segments:

a] Primary Segments

Business segment: The Company has only one segment of Home Appliances and the products considered as part of the segment are Kerosene wick Stove, LPG Stove, Range hood (Chimney) and Gas Geysers. Since inherent nature of all activities of the company is governed by the same set of risks and returns and also all the products are falling in the same category in trade parlance therefore as per the guidelines of the AS-17 no primary segment is reporting required for the year.

b] Secondary Segment

Geographical Segment : The analysis of geographical segment is based on the geographical location of the customers. The following is the distribution of the Company''s consolidated sales by geographical market:-

NOTE: 2

DISCLOSURE OF RELATED PARTY /RELATED PARTY

TRANSACTIONS

Name of the related parties and relationship

(a) Associates Companies

M/s Blow Hot Kitchen Appliances Private Limited.

(b) Key Management Personnel and their relatives Mr. SanjayGorani Managing Director Mr.AnilGorani Director

Mrs. Manju Gorani Director (Resigned during the year) Mr. Narendra Gorani Relative of Director Mr. Nakul Gorani Director (Appointed during the year)

NOTE: 3

CONTINGENT LIABILITIES

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. (Previous Year Rs.NIL) NOTE: 27

In the opinion of the management and to the best of their knowledge and belief the value of realization of current assets, loans and advances in the ordinary course of business will not be less than the amount at which they are stated in the balance sheet. No provision has been made for the long outstanding debtors considered as recoverable, because it is still under negotiation stage.

NOTE: 4

Additional Information pursuant to provisions of paragraph 3,4B, 4C of part II of schedule VI to the companies as certified by the Directors:

NOTE: 5

The Balances in the accounts of debtors, creditors, loans, advances and others are subject to confirmation and reconciliation. But no confirmation is called in last three year by the company.

NOTE: 6

The previous year figures have been regrouped / reclassified, wherever necessary to confirm to the current year figures.

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Mar 31, 2012

Note: 1

Contingent Liabilities

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. (Previous Year Rs. NIL)

Note: 2

In the opinion of the management and to the best of their knowledge and belief the value of realization of current assets, loans and advances in the ordinary course of business will not be less than the amount at which they are stated in the balance sheet. No provision has been made for the long outstanding debtors considered recoverable because it is still under negotiation stage.

Note: 3

The Balances in the accounts of debtors, creditors, loans, advances and others are subject to confirmation and reconciliation. But no confirmation is called in last three year by the company.

Note: 4

The Financial Statement for the year ended 31st March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956 the Financial Statement for the year ended 31st March'2012 are prepared as per revised Schedule VI. Accordingly the previous year figures have also been reclassified to conform to this year's classification. The adoption of revised Schedule VI for the previous year figures does not impact recognition and measurement principals followed for preparation of Financial Statements.

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Mar 31, 2011

1. Contingent Liabilities

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. (Previous Year Rs.NIL)

2. Based on the information available with us and relied upon by the Auditors the information as required to be disclosed under Micro, Small & Medium Enterprises Development Act, 2006 as on 31/03/2011 is NIL,

3. The Balances in the accounts of customers, suppliers and others are subject to confirmation and reconciliation. But no confirmation is called in last three year by the company.

4. Figures have been rounded off to nearest rupee.

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Mar 31, 2010

1. Contingent Liabilities :

Estimated amount of contracts remaining to be executed on capital account (Net of Capital Advance) not provided for Rs. Nil (Previous Year Rs. Nil).

2. In the opinion of the management and to the best of their knowledge and belief the value of realisation of current assets, loans and advances in the ordinary course of business will not be less than the amount at which they are stated in the balance sheet. No provision has been made for the long outstanding debtors considered doubtful because it is still under negotiation stage

3. The Management is of the opinion that there are no Small Scale Industries to whom the Company owes a sum exceeding Rs. 1.00 Lacs, which is outstanding for more than 30 days at the Balance Sheet date.

4 Based on the information available with us and relied upon by the Auditors the information as required to be disclosed under Micro, Small & Medium Enterprises Development Act, 2006 as on 31/03/2010 is NIL.

5. The Balances in the accounts of customers, suppliers and others are subject to confirmation and reconciliation. But no confirmation is called in last three year by the company.

6. Figures have been rounded off to nearest rupee.

7. The figures in brackets indicate deduction or previous year.

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Mar 31, 2000

1. Contingent Liabilities :

Estimated amount of contracts remaining to be executed on capital account (Net of Capital Advance) not provided for Rs. 18.50 Lacs (Rs. 17.90 Lacs).

2. In the opinion of the management, no liabilities towards income tax is contemplated and therefore no provision for tax has been made.

3. In the opinion of the management and to the best of their knowledge and belief the value of realisation of current assets. Loans and advances is in the ordinary course of business and will not be less than the amount at which they are stated in the balance sheet.No provision has been made for the debt considered doubtful as it is still under negotiation stage.

Figures have been rounded off to nearest rupee.

4. Previous year figures have been regrouped/rearranged wherever considered necessary to facilitate comparison.

5. The figures in brackets/indicate deduction or previous year.