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Auditor Report of Bloom Dekor Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of BLOOM DEKOR LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,2015, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under the reference of this report.

Management's Responsibility for the Financial Statements

The management and Board of Directors of the Company are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ('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 rule 7 of Companies (Accounts) Rules, 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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; design, implementation and maintenance of adequate internalfinancial controls, that are operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on thesefinancial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements, that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's management and Board of Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion

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 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 31st March 2015, its profit/loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section143 of the Act, we give in the Annexure a statement on the matters Specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, we further 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 purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) The reports on the accounts of the branch offices of the Company audited under Section143 (8)of the Act have been properly dealt with by us in preparing this report.

d) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

e) In our opinion, the aforesaid financial statements comply with the applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014;

f) On the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

g) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:

i. The Company does not have any pending litigations which would impact its financial position except otherwise stated in para No of 1(e) of notes on accounts given in Note No 2.

ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.

iii. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise.

Referred to in Paragraph 1 of the Auditors' Report of even date to the members of Bloom Dekor Limited on thefinancial statements as of and for the year ended March 31,2015.

I. Fixed Assets:

a) The Company has generally maintained proper Records showing full particulars including quantitative details & situation of Fixed Assets on the basis of available information. However, they are not fully updated.

b) All fixed assets have not been physically verified by the management during the year, but there is a regular program of verification which, in our opinion, is reasonable hating regard to the size of the company and the nature of its assets. As informed to us, no material discrepancies were noticed on such verification.

II. Inventories :

a) The inventory has been physically verified during the year at the year-end by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) In our opinion and according to the information and explanations given to us, and on the basis of our examination of records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

III. Loan Granted:

The Company has not granted any loan secured or unsecured to any companies, firms or other parties covered in the Register maintained under section 189 of the Companies Act, 2013. Therefore, the provisions of para 3 clause iii (a) & (b) of the said Order relating to matters to be included in audit report are not applicable to the Company.

IV. Internal Control:

In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit, we have not observed any major continuing failure to correct major weaknesses in internal controls system.

V. Public Deposit:

In our opinion and according to the information and explanations given to us, the company has not accepted any depositsfrom the public hence the directives issued by the Reserve Bank of India & the Provision of Section 73 to 76 of the Company Act - 2013 or any other relevant provisions of the Act and the Rules there under are not applicable.

VI. Cost Records :

As informed by the Management for the year under audit, the Central Government has not prescribed, the maintenance of Cost Records by the Company under Section 148(1) of the Companies Act, 2013.

VII. Statutory Dues :

a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees

State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other statutory dues have been generally regularly deposited with the appropriate authorities except following:

Name of the statute Nature of dues Asst. Year Amt (In Lacs)

Income Tax Act 1961 Income Tax 2013-14 4.92 U/s 143(1)(a)

Income Tax Act 1961 Income Tax 2009-10 0.05 U/s 143(1) (a)

Gujarat sales Tax Sales Tax (VAT) 2010-11 1.18

Gujarat sales Tax Sales Tax (CST) 2010-11 0.34

Name of the statute Nature of dues Asst. Year Amt (In Lacs)

1 Income Tax Act 1961 Income TaxU/s 143(1)(a) 2013-14 4.92

2 Income Tax Act 1961 Income TaxU/s 143(1)(a) 2009-10 0.05

3 Gujarat sales Tax Sales Tax(VAT) 2010-11 1.18

4 Gujarat sales Tax Sales Tax(CST) 2010-11 0.34

b) According to the information and explanation given to us, the records examined by us, the particulars of

dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess which have not been deposited on account of any dispute, are as under:

Name of the Nature of Asst. Year statute dues

Income Tax Income Tax 1995-96 Act,1961

Income Tax Income Tax 1996-97 Act,1961

Income Tax Income Tax 2000-01 Act,1961

Income Tax Income Tax 2001-02 Act,1961

Income Tax Income Tax 2002-03 Act,1961

Income Tax Income Tax 2003-04 Act,1961

Income Tax Income Tax 2003-04 Act,1961

Income Tax Income Tax 2007-08 Act,1961

Gujarat Sales Sales Tax F.Y.2004-05 Tax

Gujarat Sales Sales Tax F.Y.2005-06 Tax

Central Excise Excise Duty F.Y.2011-12

Central Excise Excise Duty F.Y.2011-12

Central Excise Excise Duty F.Y.2012-13

Central Excise Excise Duty F.Y.2007-08 to 2009-10



Name of the Statue Forum where Appeal by Amount dispute is in Lacs pending

Income Tax Act 1961 CIT(A) Company 0.56

Income Tax Act 1961 High Court Department 12.66

Income Tax Act 1961 High Court Company 56.00

Income Tax Act 1961 High Court Company 69.72 Restored back the issue to AO for re- examination vide order dated 14- 11-2014

Income Tax Act 1961 High Court Company 6.55

Income Tax Act 1961 ITAT Department 4.57

Income Tax Act 1961 High Court Company 28.71

Income Tax Act 1961 ITAT Department 15.67

Gujarat Sales Tax Commissioner- Company 3.70 Appeal

Gujarat Sales Tax Commissioner- Company 2.28 Appeal

Central Excise Commissioner- Company 1.77 Appeal

Central Excise Tribunal Company 0.63

Central Excise Commissioner- Company 0.90 Appeal

Central Excise Tribunal Company 2.08

c) There has not been an occasion in case of the Company during the year under report to transfer any sums to

the Investor Education and Protection Fund. The question of reporting delay in transferring such sums does not arise

VIII. Accumulated Losses :

The company has no accumulated losses as at 31st March, 2015 hence the question of reporting about accumulated losses vis-a-vis fifty percent of net worth is not required. Further the company has not incurred cash loss during the

year under report. However the company had incurred cash loss of Rs. 65.31 lacs in the immediately preceding previous financial year 31st March, 2014.

IX. Repayment Default:

Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in the repayment of dues to the finandal institutions or banks. Further the Company has not issued any debenture hence there is no question of default in repayment of due to debenture holders.

X. Guarantee for Other:

In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by other from bank and financial institutions. Accordingly, no comment on the provisions of clause 3(x) of the Companies (Auditor's Report) Order, 2015 are required to be given.

XI. Term Loans:

To the best of our knowledge and belief and according to the information and explanation given to us, term loans availed by the Company were, prima fade, applied by the Company during the year for the purposes for which the loans were obtained.

XII. Fraud :

During the course of our examination of the books and records of the Company, carried in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of materialfraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the management.

For, DHARMENDRA SHAH & CO. Chartered Accountants (Dharmendra H Shah) Proprietor Place: Ahmedabad Membership No.: 036809 Date: 25/05/2015 Firm Registration No.: 102474W


Mar 31, 2014

1. We have audited the accompanying financial statements of BLOOM DEKOR LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under the reference to this report.

Management''s Responsibility for the Financial Statements :

2. Management is responsible for 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 Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility :

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion :

6. In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements :

7. As required by the Companies (Auditor''s Report) Order, 2003, as amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'', issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act ("the Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

8. As required by section 227(3) of the Act, we report that:

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated September,2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013;

e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO INDEPENDENT AUDITOR''S REPORT

Referred to in Paragraph 7 of the Auditors'' Report of even date to the members of Bloom Dekor Limited on the financial statements as of and for the year ended March 31, 2014.

(i) Fixed Assets:

a) The company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information. However, they are not fully updated.

b) All fixed assets have not been physically verified by the management during the year, but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. As informed to us, no material discrepancies were noticed on such verification.

c) In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

(ii) Inventories:

a) The inventory has been physically verified during the year at year-end by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) In our opinion and according to the information and explanations given to us, and on the basis of our examination of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

(iii) Loans taken / granted:

The Company has neither granted nor taken any loan secured or unsecured to/from any companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956. Therefore, the provisions of clause 4(iii)(b), (c), (d), (f) and (g) of the said Order are not applicable to the Company.

(iv) Internal Control:

In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any major continuing failure to correct major weakness in internal controls.

(v) Transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956

a) According to the information and explanation given to us, we are of the opinion that the company has entered all the particulars of contracts or arrangements referred to in Section 301 of Companies Act, 1956.

b) Based on the information and explanations given to us, it is our opinion that these transactions have been made at pr ima facie reasonable prices, having regard to the prevailing market prices at the relevant time and certain lot sale or second sale, if any, are at market available rate.

(vi) Public Deposit:

In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within meaning of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under.

(vii) Internal Audit:

In our opinion, the company has an internal audit system. However, the coverage and the scope is not adequate commensurate with the size and nature of its business.

(viii) Cost Records:

The Central Government has prescribed maintenance of Cost records section 209 (1)(d) of the Companies Act, 1956, in respect of the activities carried on by the company. We have broadly reviewed the books of accounts maintained by the Company, in this connection and are of the opinion that prima facie records have been maintained. We have not however made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) Statutory Dues:

a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Value Added Tax, Customs Duty, Excise Duty and other statutory dues have been generally regularly deposited with the appropriate authorities.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2014, for a period of more than six months from the date of becoming payable.

c) According to information and explanation given to us, and the records examined by us, the particulars of dues of value added tax, excise duty and Income Tax which have not been deposited on account of any dispute, are as under :

Sr. Name of the statute Nature of Asst. Year No. dues

1 Income Tax Act, 1961 Income tax 1995-96

2 Income Tax Act, 1961 Income tax 1996-97

3 Income Tax Act, 1961 Income tax 2000-01

4 Income Tax Act, 1961 Income tax 2001-02

5 Income Tax Act, 1961 Income tax 2002-03

6 Income Tax Act, 1961 Income tax 2003-04

7 Income Tax Act, 1961 Income tax 2003-04

8 Income Tax Act, 1961 Income tax 2007-08

9 Gujarat Sales Tax Sales Tax F.Y. 2004-05

10 Gujarat Sales Tax Sales Tax F.Y. 2005-06

11 Central Excise Excise Duty F.Y. 2011-12

12 Central Excise Excise Duty F.Y. 2011-12

13 Central Excise Excise Duty F.Y. 2012-13

14 Central Excise Excise Duty F.Y. 2007-08 to 2009-10

Central Excise Central Excise Central Excise Central Excise

Name of the Statute Forum where dispute Appeal by Amount is pending in Lacs

Income Tax Act, 1961 CIT(A) Company 0.56

Income Tax Act, 1961 High Court Department 12.66

Income Tax Act, 1961 High Court Company 56.00

Income Tax Act, 1961 High Court Company 69.72

Income Tax Act, 1961 High Court Company 6.55

Income Tax Act, 1961 ITAT Department 4.57

Income Tax Act, 1961 High Court Company 28.71

Income Tax Act, 1961 ITAT Department 15.67

Gujarat Sales Tax Commissioner- Appeal Company 3.70

Gujarat Sales Tax Commissioner- Appeal Company 2.28

Central Excise Commissioner- Appeal Company 1.77

Central Excise Tribunal Company 0.63

Central Excise Commissioner- Appeal Company 0.90

Central Excise Tribunal Company 2.08

(x) Accumulated losses:

The company has no accumulated losses as at 31st March, 2014 and it has incurred cash loss of Rs. 65.31 Lacs in the financial year ended on that date but in the immediately preceding financial year there was no cash loss.

(xi) Repayment default:

Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions or banks.

(xii) Loans and Advances:

According to information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4 (xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

(xiii) Chit Fund etc:

As the provisions of any Special Statute applicable to chit fund, nidhi or mutual benefit fund/societies are not applicable to the Company, the provisions of Clause 4(xiii) of the Order are not applicable to the Company.

(xiv) Trading in Shares etc:

According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

(xv) Guarantee for other:

In our opinion and according to the information and explanations given to us, the company has not given guarantee for loans taken by other from bank and financial institutions. Accordingly, the provisions of clause 4(xv) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

(xvi) Term Loans:

To the best of our knowledge and belief and according to the information and explanation given to us, term loans availed by the Company were, pr ima facie, applied by the Company during the year for the purposes for which the loans were obtained.

(xvii)Sources and Application of Fund:

According to the information and explanation given to us, and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for the purpose of long term investment.

(xviii) Preferential Allotment:

The company has made allotment of convertible preferential warrants to a party covered in the register maintained under 301 of the Companies Act. The prices at which convertible preferential warrants have been issued are not prejudicial to the interest of the company.

(xix) Issue of Debentures:

The company has not issued any debentures during the year and does not have any debentures outstanding as at the beginning of the year and at the year end. Accordingly, the provision of clause 4 (xix) of the Companies (Auditor''s Report) Order, 2003 is not applicable to the company.

(xx) Public Issue:

The Company has not raised money by any public issues during the year and, hence, the question of disclosure and verification of end use of such money does not arise.

(xxi) Fraud:

During the course of our examination of the books and records of the Company, carried in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the management.

For B. T. Vora & Co. FRN: 123652W Chartered Accountants

B. T. Vora Place: Ahmedabad (Proprietor) Date: 09/06/2014 Membership No. :013046


Mar 31, 2013

Report on the Financial Statements :

We have audited the accompanying financial statements of BLOOM DEKOR LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management`s Responsibility for the Financial Statements :

Management is responsible for 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 Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act”). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor`s Responsibility :

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor`s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company`s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion :

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements :

1. As required by the Companies (Auditor`s Report) Order, 2003 ("the Order”) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO INDEPENDENT AUDITOR`S REPORT

Referred to in Paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements” of our report of even date.

1. Fixed Assets:

a) The company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

b) All fixed assets have not been physically verified by the management during the year, but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. As informed to us, no material discrepancies were noticed on such verification.

c) In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. Inventories:

a) The inventory has been physically verified during the year at year-end by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) In our opinion and according to the information and explanations given to us, and on the basis of our examination of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

3. Loans taken / granted:

The Company has neither granted nor taken any loan secured or unsecured to/from any companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956.

4. Internal Control:

In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any major continuing failure to correct major weakness in internal controls.

5. Transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956

a) According to the information and explanation given to us, we are of the opinion that the company has entered all the particulars of contracts or arrangements referred to in Section 301 of Companies Act, 1956.

b) Based on the information and explanations given to us, it is our opinion that these transactions have been made at prima facie reasonable prices, having regard to the prevailing market prices at the relevant time and certain lot sale or second sale, if any, are at market available rate.

6. Public Deposit:

In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within meaning of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder.

7. Internal Audit:

In our opinion, the company has an internal audit system. However, the coverage and the scope is not adequate commensurate with the size and nature of its business.

8. Cost Records:

The Central Government has prescribed maintenance of Cost records section 209 (1)(d) of the Companies Act, 1956, in respect of the activities carried on by the company. We have broadly reviewed the books of accounts maintained by the Company, in this connection and are of the opinion that prima facie records have been maintained. We have not however made a detailed examination of the records with a view to determine whether they are accurate or complete.

9. Statutory Dues:

a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Value Added Tax, Customs Duty, Excise Duty and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2013, for a period of more than six months from the date of becoming payable.

b) According to information and explanation given to us, and the records examined by us, the particulars of dues of value added tax, excise duty and Income Tax which have not been deposited on account of any dispute, are as under :

Sr. Name of Nature Asst. No. the statute of dues Year

1 Income Tax Income tax 2000-01 Act, 1961

2 Income Tax Income tax 2001-02 Act, 1961

3 Income Tax Income tax 2002-03 Act, 1961

4 Income Tax Income tax 2003-04 Act, 1961

5 Income Tax Income tax 2003-04 Act, 1961

6 Income Tax Income tax 2007-08 Act, 1961

7 Gujarat Sales Tax Sales Tax F.Y. 2004-05

8 Gujarat Sales Tax Sales Tax F.Y. 2005-06

9 Central Excise Excise F.Y. 2012-13

Name Forum where Appeal by Rs. in lacs dispute is pending

Income Tax High Court Company 27.70

Income Tax High Court Company 69.72

Income Tax High Court Company 6.55

Income Tax Commissioner- Appeal Company 4.57

Income Tax High Court Company 28.71

Income Tax Commissioner- Appeal Company 0.28

Income Tax Commissioner- Appeal Company 3.70

Income Tax Commissioner- Appeal Company 2.28

Income Tax Commissioner- Appeal Company 6.24

10. Accumulated losses: The company has no accumulated losses as at 31st March, 2013 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

11. Repayment default: Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions or banks.

12. Loans and Advances: According to information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4 (xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

13. Chit Fund etc: The provisions of any Special Statute applicable to chit fund, nidhi or mutual benefit fund/societies are not applicable to the Company.

14. Trading in Shares etc: According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor`s Report) Order 2003 are not applicable to the Company.

15. Guarantee for other: In our opinion and according to the information and explanations given to us, the company has not given guarantee for loans taken by other from bank and financial institutions.

16. Term Loans: To the best of our knowledge and belief and according to the information and explanation given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained.

17. Sources and Application of Fund: According to the information and explanation given to us, and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for the purpose of long term investment.

18. Preferential Allotment: The company has made allotment of convertible preferential warrants to a party covered in the register maintained under 301 of the Companies Act. The prices at which convertible preferential warrants have been issued is not prejudicial to the interest of the company.

19. Issue of Debentures: The company has not issued any debentures. Accordingly, the provision of clause 4 (xix) of the Companies (Auditor`s Report) Order, 2003 is not applicable to the company.

20. Public Issue: The Company has not raised money by any public issues during the year and, hence, the question of disclosure and verification of end use of such money does not arise.

21. Fraud: To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

For B.T. VORA & CO

Chartered Accountants

B.T. Vora

Proprietor

Date :29/06/2013 Member No.13046

Place:Ahmedabad FRN No.123652W


Mar 31, 2012

We have audited the attached Balance Sheet of 'Bloom Dekor Limited', as at 31stMarch, 2012 and the related statement of Profit and Loss and the Cash Flow statement for the year ended on that date annexed thereto which we have signed under reference to this report. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Auditing Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit also includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to above, we report that:

a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company, so far as appears from our examination of those books;

c) The Balance Sheet, Statement of Profit and Loss and Cash Flow statement dealt with by this report, are in agreement with the books of account;

d) In our opinion, Balance Sheet, Statement of Profit and Loss and Cash Flow statement comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

e) On the basis of written representation received from the directors, as on 31/03/2012 and taken on record by the board of directors. We report that none of the director is disqualified as on 31stMarch, 2012 from being appointed as director in terms of clause (g) of Section 274(1) of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements read together with Significant Accounting Policies and Notes thereon give the information required by the Companies Act, 1956, In the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :

i) in case of the Balance Sheet, of the state of affairs of the Company as at March31st, 2012;

ii) in the case of Statement of Profit and Loss, of the profit for the year ended on that date; and

iii) in case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE

(Referred to in paragraph 3 of our report of even date on the accounts of Bloom Dekor Limited for the year ended March 31, 2012)

1. Fixed Assets:

a) The company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets. However, Current year updating is in progress.

b) All fixed assets have not been physically verified by the management during the year, but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. As informed to us, no material discrepancies were noticed on such verification.

c) In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. Inventories:

a) The inventory has been physically verified during the year at year-end by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) In our opinion and according to the information and explanations given to us, and on the basis of our examination of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

3. Loans taken / granted:

The Company has neither granted nor taken any loan secured or unsecured to/from any companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956.

4. Internal Control:

In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any major continuing failure to correct major weakness in internal controls.

5. Transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

a) According to the information and explanation given to us, we are of the opinion that the company has entered all the particulars of contracts or arrangements referred to in Section 301 of Companies Act, 1956.

b) Based on the information and explanations given to us, it is our opinion that these transactions have been made at prima facie reasonable prices, having regard to the prevailing market prices at the relevant time and certain lot sale or second sale, if any, are at market available rate.

6. Public Deposit:

In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within meaning of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder.

7. Internal Audit:

In our opinion, the company has an internal audit system. However, the coverage and the scope is not adequate commensurate with the size and nature of its business.

8. Cost Records:

The Central Government has prescribed maintenance of Cost records section 209 (1)(d) of the Companies Act, 1956, in respect of the activities carried on by the company. We have broadly reviewed the books of accounts maintained by the Company, in this connection and are of the opinion that prima facie records have been maintained. We have not however made a detailed examination of the records with a view to determine whether they are accurate or complete.

9. Statutory Dues:

a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Value Added Tax, Customs Duty, Excise Duty and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2012, for a period of more than six months from the date of becoming payable.

b) According to information and explanation given to us, and the records examined by us, the particulars of dues of value added tax, excise duty and Income Tax which have not been deposited on account of any dispute, are as under :

Sr. Name of Nature Financial Forum where Appeal by Rs. in lacs No. the statute of dues Year dispute is pending

1 Income Tax Income tax 1996-97 ITAT Company 12.17 Act, 1961

2 Income Tax Income tax 2000-01 High Court Company 56.00 Act, 1961

3 Income Tax Income tax 2001-02 High Court Company 69.72 Act, 1961

4 Income Tax Income tax 2002-03 ITAT Company 6.50 Act, 1961

5 Income Tax Income tax 2003-04 CIT (A) Company 28.71 Act, 1961

6 Gujarat Sales Tax Sales Tax 2004-05 Commissioner- Appeal Company 3.70

7 Gujarat Sales Tax Sales Tax 2005-06 Commissioner- Appeal Company 2.28

10. Accumulated losses:

The company has no accumulated losses as at 31st March, 2012 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

11. Repayment default:

Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks.

12. Loans and Advances:

According to information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4 (xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

13. Chit Fund etc:

The provisions of any Special Statute applicable to chit fund, nidhi or mutual benefit fund/societies are not applicable to the Company.

14. Trading in Shares etc:

According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order 2003 are not applicable to the Company.

15. Guarantee for other:

In our opinion and according to the information and explanations given to us, the company has not given guarantee for loans taken by other from bank and financial institutions.

16. Term Loans:

To the best of our knowledge and belief and according to the information and explanation given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained.

17. Sources and Application of Fund:

According to the information and explanation given to us, and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for the purpose of long term investment.

18. Preferential Allotment:

The Company has not made preferential allotment of equity share during the year under Audit.

19. Issue of Debentures:

The company has not issued any debentures. Accordingly, the provision of clause 4 (xix) of the Companies (Auditor's Report) Order, 2003 is not applicable to the company.

20. Public Issue:

The Company has not raised money by any public issues during the year and, hence, the question of disclosure and verification of end use of such money does not arise.

21. Fraud:

To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

For B.T. VORA & CO

Chartered Accountants

B.T. Vora

Proprietor

Date : 13/06/2012 Member No.13046

Place : Ahmedabad FRN No.123652W


Mar 31, 2011

We have audited the attached Balance Sheet of 'Bloom Oekor Limited', as at 31st March, 2011 and also the Profit and Loss Account and the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these statements based on our audit.

We conducted our audit in accordance with Auditing Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to above, we report that:

a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company, so far as appears from our examination of those books;

c) The Balance Sheet the profit and Loss Account and Cash Flow statement dealt with by this report, are in agreement with the books of account;

d) In our opinion, Balance Sheet, Profit and Loss and Cash Flow statement comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

e) On the basis of written representation received from the directors, as on 31/03/2011 and taken on record by the board of directors. We report that none of the director is disqualified as on 31stMarch, 2011 from being appointed as director in terms of clause (g) of Section 274(1) of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to the remarks in Para d) above, read together with Significant Accounting Policies, and Notes thereon give the information required by the Companies Act, 1956, In the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :

i) in case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

ii) in the case of the Profit and Loss Account, of the loss for the year ended on that date; and

iii) in case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE

(Referred to in paragraph 3 of our report of even date on the accounts of Bloom Dekor Limited for the year ended March 31, 2011)

1. Fixed Assets:

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) All fixed assets have not been physically verified by the management during the year, but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of it's asset. As informed to us, no material discrepancies were noticed on such verification.

c) In our opinion, the Company; has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. Inventories;

a) The inventory has been physically verified during the year at year-end by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) In our opinion and according to the information and explanations given to us, and on the basis of our examination of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

3. Loans taken / granted:

a) The Company has not granted loans to any companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956. Consequently, requirements of clauses (iii.a) to (iii.d) of paragraph 4 of the order are not applicable;

b) The Company had taken loan from two party covered in the Register maintained under section 301 of the Companies Act, 1956, aggregating to Rs.0.52 Lakhs. The maximum amount involved was Rs.0.52 Lacs.

c) This is interest free deposit. In our opinion, other terms and conditions of this loan taken were not prima facie prejudicial to the interests of the Company.

d) The term of repayment is not stipulated.

4. Internal Control:

In our opinion and according to the information and explanations given to us, there are adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

5. Transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

a) According to the information and explanation given to us, we are of the opinion that the company has entered all the particulars of contracts or arrangements referred to in Section 301 of Companies Act,

b) Based on the information and explanations given to us, it is our opinion that these transactions have been made at prima facie reasonable prices, having regard to the prevailing market prices at the relevant time and certain lot sale or second sale, if any, are at market available rate.

6. Public Deposit:

In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within meaning of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder.

7. Internal Audit:

In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8. Cost Records:

To the best of our knowledge and according to information given to us, the central government has not prescribed maintenance of cost records under section 209 (Id) of the Companies Act, 1956, in respect of the activities carried on by the company.

9. Statutory Dues:

a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Value Added Tax, Customs Duty, Excise Duty and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2011, for a period of more than six months from the date of becoming payable.

b) According to information and explanation given to us, and the records examined by us, the particulars of dues of value added tax, excise duty and Income Tax which have not been deposited on account of any dispute, are as under

Sr. Name of Nature Financial Forum where Appeal by Amount

No. the statute of dues Year dispute is pending in lacs

1 Income Tax Income tax 1996-97 ITAT Company 12.17 Act, 1961

2 Income Tax Income tax 2000-01 High Court Company 56.00 Act, 1961

3 Income Tax Income tax 2001-02 High Court Company 69.72 Act, 1961

4 Income Tax Income tax 2002-03 ITAT Company 6.50 Act, 1961

5 Income Tax Income tax 2003-04 CIT (A) Company 28.71 Act, 1961

6 Gujarat Sales Tax Sales Tax 2004-05 Commissioner - Appeal Company 3.70

7 Gujarat Sales Tax Sales Tax 2005-06 Commissioner - Appeal Company 2.28

10. Accumulated losses:

The company has no accumulated losses as at 31st March, 2011 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

11. Repayment default:

Based on our ^udit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks.

12. Loans and Advances:

According to information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4 (xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

13. CMt Fund etc:

The provisions of any Special Statute applicable to chit fund, nidhi or mutual benefit fund/societies are not applicable to the Company.

14. Trading In Shares etc:

According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order 2003 are not applicable to the Company.

15. Guarantee for other:

In our opinion and according to the information and explanations given to us, the terms and conditions of guarantee given by the Company for loans taken by other from bank and financial institutions is prima facie, not prejudicial to the interests of the Company.

16. Term Loans:

To the best of our knowledge and belief and according to the information and explanation given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained.

17. Sources and Application of Fund:

According to the information and explanation given to us, and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for the purpose of long term investment.

18. Preferential Allotment:

The Company has not made preferential allotment of equity share during the year under Audit.

19. Issue of Debentures:

The company has not issued any debentures. Accordingly, the provision of clause 4 (xix) of the Companies (Auditor's Report) Order, 2003 is not applicable to the company.

20,. Public Issue:

The Company has not raised money by any public issues during the year and, hence, the question of disclosure and verification of end use of such money does not arise.

21. Fraud:

To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

For B.T. VORA & CO

Chartered Accountants B.T. Vora

Proprietor Date : 31.05.2011 Member No.13046

Place : Ahmedabad FRN No.l23652W


Mar 31, 2010

We have audited the attached Balance Sheet of Bloom Dekor Limited, as at 31stMarch, 2010 and also the Profit and Loss Account and the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these statements based on our audit.

We conducted our audit in accordance with Auditing Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to above, we report that:

a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company, so far as appears from our examination of those books;

c) The Balance Sheet the profit and Loss Account and Cash Flow statement dealt with by this report, are in agreement with the books of account;

d) In our opinion, Balance Sheet, Profit and Loss and Cash Flow statement comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956, except (1) to the extent of non provision of excise duty on finished goods not cleared from the factory and corresponding equivalent amount not considered in valuation of inventories as stated in Note No. B) 7(1) of schedule 19. However, this has no impact on the profit for the year.

e) On the basis of written representation received from the directors, as on 31/03/2010 and taken on record by the board of directors. We report that none of the director is disqualified as on 31st March, 2010 from being appointed as director in terms of clause (g) of Section 274(1) of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to the remarks in Para d) above, read together with Significant Accounting Policies, and Notes thereon give the information required by the Companies Act, 1956, In the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :

i) in case of the Balance Sheet, of the state of affairs of the Company as at March 31st, 2010;

ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

iii) in case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE

(Referred to in paragraph 3 of our report of even date on the accounts of Bloom Dekor Limited for the year ended March 31, 2010)

1. Fixed Assets:

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) All fixed assets have not been physically verified by the management during the year, but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its asset. As informed to us, no material discrepancies were noticed on such verification.

c) In our opinion, the Company has not disposed of substantial part of fi>:cJ assets during the year and the going concern status of the Company is not affected.

2. Inventories:

a) The inventory has been physically verified during the year at year-end by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) In our opinion and according to the information and explanations given to us, and on the basis of our examination of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

3. Loans taken / granted:

a) The Company has not granted loans to any companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956. Consequently, requirements of clauses (iii.a) to (iii.d) of paragraph 4 of the order are not applicable;

b) The Company had taken loan from two party covered in the Register maintained under section 301 of the Companies Act, 1956, aggregating to Rs.0.52 Lakhs. The maximum amount involved was Rs.4.27 Lacs.

c) This is interest free deposit. In our opinion, other terms and conditions of this loan taken were not prima facie prejudicial to the interests of the Company.

d) The term of repayment is not stipulated.

4. Internal Control:

In our opinion and according to the information and explanations given to us, there are adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

5. Transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

a) According to the information and explanation given to us, we are of the opinion that the company has entered all the particulars of contracts or arrangements referred to in Section 301 of Companies Act, 1956.

b) Based on the information and explanations given to us, it is our opinion that these transactions have been made at prima facie reasonable prices, having regard to the prevailing market prices at the relevant time and certain lot sale or second sale, if any, are at market available rate.

6. Public Deposit:

In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within meaning of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder.

7. Internal Audit:

In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8. Cost Records:

To the best of our knowledge and according to information given to us, the central government has not prescribed maintenance of cost records under section 209 (Id) of the Companies Act, 1956, in respect of the activities carried on by the company.

9. Statutory Dues:

a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Value Added Tax, Customs Duty, Excise Duty and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2010, for a period of more than six months from the date of becoming payable.

b) According to information and explanation given to us, and the records examined by us, the particulars of dues of value added tax, excise duty and Income Tax which have not been deposited on account of any dispute, are as under.

Sr. Name of Nature Financial Forum where

No. the statute of dues Year dispute is pending

1 Income Tax Income tax 1996-97 ITAT

Act, 1961

2 Income Tax Income tax 2000-01 High Court

Act, 1961

3 Income Tax Income tax 2001-02 High Court Act, 1961

4 Income Tax Income tax 2002-03 ITAT Act, 1961

5 Income Tax Income tax 2003-04 CIT (A) Act, 1961

6 Gujarat Sales Tax Sales Tax 1998-1999 Sales Tax Tribunal

7 Gujarat Sales Tax Sales Tax 2000-01 Sales Tax Tribunal

8 Gujarat Sales Tax Sales Tax 2004-05 Commissioner- Appeal

9 Gujarat Sales Tax Sales Tax 2005-06 Commissioner- Appeal



Name of the statute Appeal by Amount in lacs

Income Tax Company 12.17 Act, 1961

Income Tax Company 56.00 Act, 1961

Income Tax Company 69.72 Act, 1961

Income Tax Company 6.50 Act, 1961

Income Tax Company 28.71 Act, 1961

Gujarat Sales Tax Company 1.57

Gujarat Sales Tax Company 2.65

Gujarat Sales Tax Company 3.70

Gujarat Sales Tax Company 2.28

10. Accumulated losses:

The company has no accumulated losses as at 31st March, 2010 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

11. Repayment default:

Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks.

12. Loans and Advances:

According to information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4 (xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

13. Chit Fund eta

The provisions of any Special Statute applicable to chit fund, nidhi or mutual benefit fund/societies are not applicable to the Company.

14. Trading in Shares etc:

According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

15. Guarantee for other:

In our opinion and according to the information and explanations given to us, the terms and conditions of guarantee given by the Company for loans taken by other from bank and financial institutions is prima facie, not prejudicial to the interests of the Company.

16. Term Loans:

To the best of our knowledge and belief and according to the information and explanation given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained.

17. Sources and Application of Fund:

According to the information and explanation given to us, and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for the purpose of long term investment.

18. Preferential Allotment:

The Company has not made preferential allotment of equity share during the year under Audit.

19. Issue of Debentures:

The company has not issued any debentures. Accordingly, the provision of clause 4 (xix) of the Companies (Auditors Report) Order, 2003 is not applicable to the company.

20. Public Issue:

The Company has not raised money by any public issues during the year and, hence, the question of disclosure and verification of end use of such money does not arise.

21. Fraud:

To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

Notes: Working Capital / Term Loans :

1) Term Loan taken for S.S.Press Mould is secured by equitable mortgage (exclusively First Charge) of S.S.Prees Moulds.

2) Pari passu first charge over the immovable property bearing Land Block no.267, 268 & 269 at Village : Oran together with construction of industrial premises thereon and plant & machinery, fixture & fittings purchased or to be purchased out of the Term Loan for Engineered door frames & Shutters project.

3) Working Capital Loans from State Bank of India and The Karur Vysya Bank Ltd are secured by way of first charge ranking pari passu with each other by hypothecation of all present and future goods, book debts and all other movable assets of the Company including documents of titles to the goods, outstanding monies, receivables including receivables by way of cash assistance and/or cash incentives under the cash incentive scheme or any other schemes, claims including claims by way of refund of customs/excise duty under the duty drawback credit scheme or any other scheme, bills,invoices,documents, contracts, insurance policies, guarantees, engagements, securities, investments, future machinery belonging to or in the possession or under the control of the company whereever lying, stored and kept whether in possession of the company or of the bank or of any third party whether in India or elsewhere throughout the world including all such goods, other movable assets as may in course of shipment transit and personal guarantee of directors. The Same is also secured by creation fo joint charges of both banters on immovable properties of the compnay by equitable mortgage of property situated at block no.267, 268 & 269 at village Oran more specifically descirbed in point (2) above. During the year facilities in the form of Fund base, Non-Fund base and term loans from consortium of State Bank of India and the Karur Vysya Bank were closed and the same were availed from Punjab National Bank. The financial assistance from Punjab National bank is secured by Hypothecation of movable assets presently. The company is in process of releasing documents of mortgage of immovable properties from the Stat Bank of India and The Karur Vsya Bank and charge will be created on said immovable properties of the company in favour of Punjab National Bank.

for B.T. V0RA & CO.

Chartered Accountants

B.T. Vora

Proprietor

Date : 29.05.2010 Member No. 13046

Place : Ahmedabad FRN N0.123652W





 
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