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Auditor Report of Bloom Industries Ltd.

Mar 31, 2014

We have audited the accompanying financial statement of Bloom Industries Limited ("the Company"), which comprise the Balance Sheets 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.

Management is responsible for the preparation of these financial statement that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the 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.

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 judgments, 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.

In our opinion and to the best of our information and according to the explanations given to us, the annexed accounts read with the Wofes thereon given in notes No. 2.09, give the information required by the Act in the manner so required except provision for liability towards leave salary and gratuity of employees is accounted for on cash basis, which is not in conformity with accounting standard 15 on "Accounting of Retirement Benefit to Employees:.

Subject to the above observation and read with notes thereon in Notes No."2.09" the said accounts give a true and fair view :-

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 Profit and Loss Account, 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.

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

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; Except AS 15 on "Accounting on Retirement Benefit to Employees" which is on cash basis.

e) On the basis of written representations received from the directors as on March31,2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Annexure Referred to in paragraph (2) of our report of even date on the accounts for the year ended 31 st March, 2014 of BLOOM INDUSTRIES LIMITED.

1. In respect of its fixed assets:

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

b) All the assets have been physically verified by the management during the year, There is regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. According to the information and explanation given to us, no material discrepancies have been noticed on such verification.

c) The company has not disposed off a substantial part of fixed assets during the year.

2. In respect of its inventories:

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

(b) In our opinion, 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) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification as compared to book records.

3. In respect of loans granted to parties covered in the register maintained u/s 301 of the Companies Act, 1956.

(a) The company has granted loans to four parties covered in the register maintained under sections 301 of the Companies Act, 1956. The amount involved during the year was Rs. 145.17 Lacs and the year-end balance of loans granted to such parties was Rs. 131.03 Lacs.

(b) In our opinion the rate of interest & other terms and conditions on which loan have been granted to the companies listed in the register maintained under Section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) The party to whom loans have been granted are regular in repaying the principal amount & interest as stipulated in the terms & conditions.

(d) There is no overdue amount of loan granted to the parties listed in the register maintained under Section 301 of the Companies Act, 1956.

In respect of loans taken from parties covered in the register maintained u/s 301 of the Companies Act, 1956.

e) The company has nor taken any secured or unsecured loans from any Company or party covered in the register maintained under Section 301 of the Companies Act, 1956. In view of this clause 4 iii(e), 4 iii(f), 4 iii (g) of the order are not applicable to the Company.

4. In respect of internal control:

In our opinion and according to the 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 sale of goods and services. During the course of the audit we have not observed any continuing failure to correct major weaknesses in internal control system.

5. In respect of transactions need to be entered into a register maintained u/s 301 of the Companies Act, 1956.

(a) According to the information and explanation given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at price which are reasonable having regard to prevailing market prices at the relevant time.

6. In respect of deposits from public

The Company has not accepted deposits from the public. As such, the question of complying with the directives issued by the Reserve Bank of India and the provisions of Section 58A of the Companies Act, 1956 and rules framed thereunder does not arise.

7. In respect of internal audit system

In our opinion, The company has an adequate internal Audit system commensurate with its size and nature of its business.

8. In respect of maintenance of cost records

In the present case, the Central Government has not prescribed the maintenance of the cost records under section 209(1) (d) of the Companies Act, 1956. As such, the question of reviewing the books of account to be maintained by the company pursuant to such an order does not arise.

9. In respect of statutory dues:

(a) According to the information and explanations given to us, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, investor Education and Protection Fund, Employees State Insurance, Income-Tax, Sales Tax, Service Tax, Wealth Tax, Fringe Benefit Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, wealth tax, sale tax, customs duty, excise duty, service tax, and cess were in arrears, as at 31" March 2014 for a period of more than six months from the date they became payable. Except Service Tax & Cess amounting of Rs.2,21,620/- and professional tax amounting to Rs. 36,350/-

(c) According to the information and explanations given to us, there are no dues of income tax, wealth tax, service tax custom duty, excise duty and cess which have not been deposited on account of any dispute.

10. In respect of accumulated losses and cash losses

The Company has accumulated losses at the end of the year however it is less than fifty percent of its net worth. The Company has not incurred cash loss during the year as well as in the immediately preceding financial year.

11. In respect of dues to financial institution/banks/debentures

According to the information and explanation given to us and as per the our verification of records of the company, the Company has not defaulted in repayment of dues to any financial institution, banks or debenture holders as at the Balance Sheet date.

12. In respect of loans and advances granted on the basis of security

As informed to us, the company has not granted any loans and advances on the basis of security by way of pledge on any shares, debentures and other securities, therefore, the provisions of clause 4(xii) of the companies (Auditor''s Report) Order 2003 are not applicable to the Company.

13. In respect of chit fund or a nidhi mutual benefit

In Our opinion, the Company is not a chit fund or a nidhi mutual benefit fund /society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

14. In respect of dealing ortrading in shares, securities, debentures and other investments.

The Company is not dealing or trading in shares, securities, debentures and other investment. Therefore, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company

15. In respect of guarantee given for loan taken by others

The Company has given a guarantee for amounting to Rs.150 Lakhs to Kotak Mahindra Bank Ltd. for loans taken by a director. In our opinion the terms and conditions on which guarantee have been given are not, prima facie, prejudicial to the interest of the Company.

16. In respect of term loans taken

The term loan raised during the year and out standing at the beginning of the year was applied for the purpose for which it was taken.

17. In respect of fund used

According to the information and explanations given to us and overall examination of the Balance Sheet of the Company, we report that no fund raised on short term basis have been used for long term investments.

18. In respect of preferential allotment of shares

The Company has not made any preferential allotment of shares during the year under review. Therefore, the provisions of clause 4(xviii) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

19. In respect of securities created for debentures

The Company has not issued any debentures. Therefore, the provisions of clause 4(xix) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

20. In respect of end use of money raised by public issue

During the year under review, The Company has not raised any money by way of public issues. Hence the question of verification of end use of money raised in public issue as per the provision of clause 4(xx) of the companies (Auditor''s Report) Order 2003 does not arise.

21. In respect of fraud

On the basis of our examinations and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of the audit.

Place :Mumbai Dated : 28/05/2014

For SARDA SONI ASSOCIATES Chartered Accountants Firm Reg. No. 117235

MANOJJAIN PARTNER M.No.120788


Mar 31, 2013

We have audited the accompanying financial statement of Bloom Industries Limited ("the Company"), which comprise the Balance Sheets 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 is responsible for the preparation of these financial statement that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the 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.

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 judgments, 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.

In our opinion and to the best of our information and according to the explanations given to us, the annexed accounts read with the Notes thereon given in notes No. 17, give the information required by the Act in the manner so required except provision for liability towards leave salary and gratuity of employees is accounted for on cash basis, which is not in conformity with accounting standard 15 on "Accounting of Retirement Benefit to Employees:.

Subject to the above observation and read with notes thereon in Notes No."17" the said accounts give a true and fairview:-

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 Profit and Loss Accou nt, 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.

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 ou r 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; Except AS 15 on "Accounting on Retirement Benefit to Employees" which is on cash basis.

e) On the basis of written representations received from the directors as on March31, 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 director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Annexure Referred (o in paragraph (2) of our report of even dale on the accounts for the year ended 31s'' March, 2013 of BLOOM INDUSTRIES LIMITED.

1. In respect of its fixed assets :

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

b) All the assets have been physically verified by the management during the year, There is regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. According to the information and explanation given to us, no material discrepancies have been noticed on such verification.

c) The company has not disposed off a substantial part of fixed assets during the year.

2. In respect of its inventories :

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

(b) In our opinion, 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) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification as compared to book records.

3. In respect of loans granted to parties covered in the register maintained u/s 301 of the Companies Act, 1956.

(a) The company has granted loans to two parties covered in the register maintained under sections 301 of the Companies Act, 1956. The amount involved during the year was Rs. 122.71 Lacs and the year-end balance of loans granted to such parties was Rs. 121.93 Lacs.

(b) In our opinion the rate of interest & other terms and conditions on which loan have been granted to the companies listed in the register maintained under Section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) The party to whom loans have been granted are regular in repaying the principal amount & interest as stipulated in the terms & conditions.

(d) There is no overdue amount of loan granted to the parties listed in the register maintained under Section 301 of the Companies Act, 1956.

In respect of loans taken from parties covered in the register maintained u/s 301 of the Companies Act, 1956.

e) The company has nor taken any secured or unsecured loans from any Company or party covered in the register maintained under Section 301 of the Companies Act, 1956. In view of this clause 4 iii(e), 4 iii(f), 4 iii (g) of the order are not applicable to the Company.

4. In respect of internal control:

In our opinion and according to the 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 sale of goods and services. During the course of the audit we have not observed any continuing failure to correct major weaknesses in internal control system.

5. In respect of transactions need to be entered into a register maintained u/s301 of the Companies Act, 1956.

(a) According to the information and explanation given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at price which are reasonable having regard to prevailing market prices at the relevant time.

6. In respect of deposits from public

The Company has not accepted deposits from the public. As such, the question of complying with the directives issued by the Reserve Bank of India and the provisions of Section 58A of the Companies Act, 1956 and rules framed thereunder does not arise.

7. In respect of internal audit system

In our opinion, The company has an adequate internal Audit system commensurate with its size and nature of its business.

8. In respect of maintenance of cost records

In the present case, the Central Government has not prescribed the maintenance of the cost records under section 209(1) (d) of the Companies Act, 1956. As such, the question of reviewing the books of account to be maintained by the company pursuant to such an order does not arise.

9. In respect of statutory dues:

(a) According to the information and explanations given to us, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-Tax, Sales Tax, Service Tax, Wealth Tax, Fringe Benefit Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, wealth tax, sale tax, customs duty, excise duty, service tax, and cess were in arrears, as at 31s'' March 2013 for a period of more than six months from the date they became payable. Except Service Tax & Cess amounting of Rs.5,74,749/- and professional tax amounting to Rs. 12,850/-

(c) According to the information and explanations given to us, there are no dues of income tax, wealth tax, service tax custom duty, excise duty and cess which have not been deposited on account of any dispute.

10. In respect of accumulated losses and cash losses

The Company has accumulated losses at the end of the year however it is less than fifty percent of its net worth. The Company has not incurred cash loss during the year as well as in the immediately preceding financial year.

11. In respect of dues to financial institution/banks / debentures

According to the information and explanation given to us and as per the our verification of records of the company, the Company has not defaulted in repayment of dues to any financial institution, banks or debenture holders as at the Balance Sheet date.

12. In respect of loans and advances granted on the basis of security

As informed to us, the company has not granted any loans and advances on the basis of security by way of pledge on any shares, debentures and other securities, therefore, the provisions of clause 4(xii) of the companies (Auditor''s Report) Order 2003 are not applicable to the Company.

13. In respect of chit fund or a nidhi mutual benefit

In Our opinion, the Company is not a chit fund or a nidhi mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

14. In respect of dealing or trading in shares, securities, debentures and other investments.

The Company is not dealing or trading in shares, securities, debentures and other investment. Therefore, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company

15. In respect of guarantee given for loan taken by others

The Company has given a guarantee for amounting to Rs.150 Lakhs to Kotak Mahindra Bank Ltd. for loans taken by a director. In our opinion the terms and conditions on which guarantee have been given are not, prima facie, prejudicial to the interest of the Company.

16. In respect of term loans taken

The term loan raised during the year and out standing at the beginning of the year was applied for the purpose for which it was taken.

17. In respect of fund used

According to the information and explanations given to us and overall examination of the Balance Sheet of the Company, we report that no fund raised on short term basis have been used for long term investments.

18. In respect of preferential allotment of shares

The Company has not made any preferential allotment of shares during the year under review. Therefore, the provisions of clause 4(xviii) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

19. In respect of securities created for debentures

The Company has not issued any debentures. Therefore, the provisions of clause 4(xix) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

20. In respect of end use of money raised by public issue

During the year under review, The Company has not raised any money by way of public issues. Hence the question of verification of end use of money raised in public issue as per the provision of clause 4(xx) of the companies (Auditor''s Report) Order 2003 does not arise,

21. In respect of fraud

On the basis of our examinations and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of the audit.

For SARDASONI ACCOCIATES

Chartered Accountants

Firm Reg.No.117235

Place :Mumbai

Dated : 30/05/2013 MANOJ JAIN

PARTNER

Membership No. 120788


Mar 31, 2010

We have audited the attached Balance Sheet of BLOOM INDUSTRIES LIMITED as at 31st March, 2010 and also the Profit & Loss Account and the Cash Flow statement of the Company 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 financial statements based on our audit.

1. 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 of material misstatement. An audit 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.

2. As required, by the Companies (Auditors Report) Order.2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956, We enclose in the annexure, a statement on the matters prescribed in paragraphs 4 and 5 of the said order.

3. Further, to our comments, in annexure referred to in paragraph 2 above, we report that:

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

(ii) In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examinations of these books;

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with books of account;

(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting Standards referred to in sub-section (3C) of Section 211 of the Company Act, 1956; Excepts AS 15 on "Accounting of Retirement Benefit to Employees" which is on cash basis.

(v) On the basis of the written representations received from the directors, as on 31st March, 2010, and taken on record by the Board of Directors, We report that none of the directors is disqualified as on 31 "March, 2010 from being appointed as a director in terms of clause (g) of Sub- section (I) of Section 274 of the Companies Act, 1956;

4. In our opinion and to the best of our information and according to the explanations given to us, the annexed accounts read with the Notes thereon given in Schedule "O", give the information required by the Companies Act,1956 (as amended) in the manner so required except Provision for liability towards leave salary and gratuity of employees is accounted for on cash basis, which is not in conformity with accounting standard 15 on "Accounting of Retirement Benefit to Employees:.

Subject to the above observations and read with notes thereon in Schedule "O" the said accounts give a true and fair view:-

(a) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2010;

(b) In the case of the Profit and Loss Account, of the Profit of the Company 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.

Annexure Referred to in paragraph (2) of our report of even date on the accounts for the year ended 31st March, 201 Oof BLOOM INDUSTRIES LIMITED.

1. In respect of its fixed assets:

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

b) All the assets have been physically verified by the management during the year, There is regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. According to the information and explanation given to us, no material discrepancies have been noticed on such verification.

c) The company has not disposed off a substantial part of fixed assets during the year.

2. In respect of its inventories:

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

(b) In our opinion, 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) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification as compared to book records.

3. In respect of loans granted to parties covered in the register maintained u/s 301 of the Companies Act, 1956.

(a) The company has granted loans to three parties covered in the register maintained under sections 301 of the Companies Act, 1956. The amount involved during the year was Rs. 259.68 Lacs and the year-end balance of loans granted to such parties was Rs. 69.91 Lacs.

(b) In our opinion the rate of interest & other terms and conditions on which loan have been granted to the companies listed in the register maintained under Section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) The party to whom loans have been granted are regular in repaying the principal amount & interest as stipulated in the terms & conditions.

(d) There is no overdue amount of loan granted to the parties listed in the register maintained under Section 301 of the Companies Act, 1956.

In respect of loans taken from parties covered in the register maintained u/s 301 of the Companies Act, 1956.

e) The company has taken unsecured loans from one party covered in the register maintaince under Section 301 of the Companies Act, 1956, The maximum amount involved during the year was Rs.19.45 Lakhs and the year end balance of loans taken from such parties was Rs.Nil.

(f) In our opinion the rate of interest and other terms and conditions on which loans have been taken by the companies, Secured or unsecured are not, prima facie, prejudicial to the interest of the Company.

(g) The payment of the principal amount and interest thereon are regular.

4. In respect of internal control:

In our opinion and according to the 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 sale of goods and services. During the course of the audit we have not observed any continuing failure to correct major weaknesses in internal control system.

5. In respect of transactions need to be entered into a register maintained u/s 301 of the Companies Act, 1956.

(a) According to the information and explanation given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at price which are reasonable having regard to prevailing market prices at the relevant time.

6. In respect of deposits from public

The Company has not accepted deposits from the public. As such, the question of complying with the directives issued by the Reserve Bank of India and the provisions of Section 58A of the Companies Act, 1956 and rules framed thereunder does not arise.

7. In respect of internal audit system

In our opinion, The company has an adequate internal Audit system commensurate with its size and nature of its business.

8. In respect of maintenance of cost records

In the present case, the Central Government has not prescribed the maintenance of the cost records under section 209(1) (d) of the Companies Act, 1956. As such, the question of reviewing the books of account to be maintained by the company pursuant to such an order doesnot arise.

9. In respect of statutory dues:

(a) According to the information and explanations given to us, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-Tax, Sales Tax, Service Tax, Wealth Tax, Fringe Benefit Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, wealth tax, sale tax, customs duty, excise duty, service tax, and cess were in arrears, as at 31st March 2010 for a period of more than six months from the date they became payable. Except Service Tax & Cess amounting of Rs.5,93,697/-

(c) According to the information and explanations given to us, there are no dues of income tax, wealth tax, service tax custom duty, excise duty and cess which have not been deposited on account of any dispute.

10. In respect of accumulated losses and cash losses

The Company has accumulated losses at the end of the year however it is less than fifty percent of its net worth. The Company has not incurred cash loss during the year as well as in the immediately preceding financial year.

11. In respect of dues to financial institution /banks / debentures

According to the information and explanation given to us and as per the our verification of records of the company, the Company has not defaulted in repayment of dues to any financial institution, banks or debenture holders as at the Balance Sheet date.

12. In respect of loans and advances granted on the basis of security

As informed to us, the company has not granted any loans and advances on the basis of security by way of pledge on any shares, debentures and other securities, therefore, the provisions of clause 4(xii) ofthe companies (Auditors Report) Order 2003 are not applicable to theCompany.

13. In respect of chit fund or a nidhi mutual benefit

In Our opinion, the Company is not a chit fund or a nidhi mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

14. In respect of dealing or trading in shares, securities, debentures and other investments.

The Company is maintaining timely proper records of the transaction and contracts for purchases or sales of shares, securities, debentures and other investment, and the same is held by the company, in its own name except few Shares held as investment are lying with broker.

15. In respect of guarantee given for loan taken by others

The Company has given a guarantee for amounting to Rs.150 Lakhs to Kotak Mahindra Bank Ltd. for loans taken by a director. In our opinion the terms and conditions on which guarantee have been given are not, prima facie, prejudicial to the interest of the Company.

16. In respect of term loans taken

The term loan raised during the year and out standing at the beginning of the year was applied for the purpose for which it was taken.

17. In respect of fund used

According to the information and explanations given to us and overall examination of the Balance Sheet of the Company, we report that no fund raised on short term basis have been used for long term investments.

18. In respect of preferential allotment of shares

The Company has not made any preferential allotment of shares during the year under review. Therefore, the provisions of clause 4(xviii) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

19. In respect of securities created for debentures

The Company has not issued any debentures. Therefore, the provisions of clause 4(xix) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

20. In respect of end use of money raised by public issue

During the year under review, The Company has not raised any money by way of public issues. Hence the question of verification of end use of money raised in public issue as per the provision of clause 4(xx) of the companies (Auditors Report) Order 2003 does not arise.

21. In respect of fraud

On the basis of our examinations and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of the audit.

Place: Mumbai For JANGID & ASSOCIATES

Dated: 23/08/2010 Chartered Accountants

FirmReg.No.104045W

SAJJANAGARWAL

PARTNER

M.NO. 102586




Mar 31, 2009

We have audited the attached Balance Sheet of BLOOM INDUSTRIES LIMITED as at 31st March, 2009 and also the Profit & Loss Account and the Cash Flow statement of the Company 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 financial statements based on our audit.

1. 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 of material misstatement. An audit 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

2. As required, by the Companies (Auditors Report) Order,2003 issued by the Central Government of lndia in terms of Section 227(4A) of the Companies Act, 1956, We enclose in the annexure, a statement on the matters prescribed in paragraphs 4 and 5 of the said order.

3. Further, to our comments, in annexure referred to in paragraph 2 above, we report that:

(i) 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;

(ii) In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examinations of these books;

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with books of account;

(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting Standards referred to in sub-section (3C) of Section 211 of the Company Act, 1956; Excepts AS 15 on "Accounting of Retirement Benefit to Employees" which is on cash basis

(v) On the basis of the written representations received from the directors, as on 31" March, 2009, and taken on record by the Board of Directors, We report that none of the directors is disqualified as on 31st March, 2009 from being appointed as a director in terms of clause (g) of Sub- section (I) of Section 274 of the Companies Act, 1956;

4. In our opinion and to the best of our information and according to the explanations given to us, the annexed accounts read with the Notes thereon given in Schedule "M", give the information required by the Companies Act,1956 (as amended) in the manner so required except Provision for liability towards leave salary and gratuity of employees is accounted for on cash basis, which is not in conformity with accounting standard 15 on "Accounting of Retirement Benefit to Employees:.

Subject to the above observations and read with notes thereon in Schedule "M" the said accounts give a true and fair view:-

(a) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2009,

(b) In the case of the Profit and Loss Account, of the Profit of the Company 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

Annexure Referred to in paragraph (2) of our report of even date on the accounts lor the year ended 31" March, 2009 of BLOOM INDUSTRIES LIMITED.

1. In respect of its fixed assets:

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

b) All the assets have been physically verified by the management during the year, There is regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. According to the information and explanation given to us, no material discrepancies have been noticed on such verification.

c) The company has not disposed off a substantial part of fixed assets during the year.

2. In respect of its inventories:

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

(b) In our opinion, 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) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification as compared to book records.

3. In respect of loans granted to parties covered in the register maintained u/s 301 of the Companies Act, 1956.

(a) The company has granted loans to Six parties covered in the register maintained under sections 301 of the Companies Act, 1956.The amount involved during the year was Rs. 260.95 Lacs and the year-end balance of loans granted to such parties was Rs. 182.00 Lacs.

(b) In our opinion the rate of interest & other terms and conditions on which loan have been granted to the companies listed in the register maintained under Section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) The party to whom loans have been granted are regular in repaying the principal amount & interest as stipulated in the terms & conditions.

(d) There is no overdue amount of loan granted to the parties listed in the register maintained under Section 301 of the Companies Act. 1956.

In respect of loans taken from parties covered in the register maintained u/s 301 of the Companies Act, 1956. e) The company has taken unsecured loans from three party covered in the register maintaince under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.34.86 Lakhs and the year end balance of loans taken from such parties was Rs. 19.45 Lakhs.

(f) In our opinion the rate of interest and other terms and conditions on which loans have been taken by the companies, Secured or unsecured are not, prima facie, prejudicial to the interest of the Company.

(g) The payment of the principal amount and interest thereon are regular.

4. In respect of internal control:

In our opinion and according to the 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 sale of goods and services. During the course of the audit we have not observed any continuing failure to correct major weaknesses in internal control system.

5. In respect of transactions need to be entered into a register maintained u/s 301 of the Companies Act, 1956.

(a) According to the information and explanation given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at price which are reasonable having regard to prevailing market prices at the relevant time.

6. In respect of deposits from public

The Company has not accepted deposits from the public. As such, the question of complying with the directives issued by the Reserve Bank of India and the provisions of Section 58A of the Companies Act, 1956 and rules framed thereunder does not arise.

7. In respect of internal audit system

In our opinion, The company has an adequate internal Audit system commensurate with its size and nature of its business.

8. In respect of maintenance of cost records

In the present case, the Central Government has not prescribed the maintenance of the cost records under section 209( 1) (d) of the Companies Act, 1956. As such, the question of reviewing the books of account to be maintained by the company pursuant to such an order does not arise.

9. In respect of statutory dues:

(a) According to the information and explanations given to us, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-Tax, Sales Tax, Service Tax, Wealth Tax, Fringe Benefit Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, wealth tax, sale tax, customs duty, excise duty, service tax, and cess were in arrears, as at 31" March 2009 for a period of more than six months from the date they became payable. Except Service Tax & Cess amounting of Rs.80,279/-.

(c) According to the information and explanations given to us, there are no dues of income tax, wealth tax, service tax, custom duty, excise duty and cess which have not been deposited on account of any dispute.

10. In respect of accumulated losses and cash losses

The Company has accumulated losses at the end of the year however it is less than fifty percent of its net worth. "The Company has not incurred cash loss during the year as well as in the immediately preceding financial year.

11. In respect of dues to financial institution/banks/debentures

According to the information and explanation given to us and as per the our verification of records of the company, the Company has not defaulted in repayment of dues to any financial institution, banks or debenture holders as at the Balance Sheet date.

12. In respect of loans and advances granted on the basis of security

As informed to us, the company has not granted any loans and advances on the basis of security by way of pledge on any shares, debentures and other securities, therefore, the provisions of clause 4(xii) of the companies (Auditors Report) Order 2003 are not applicable to the Company.

13. In respect of chit fund or a nidhi mutual benefit

In Our opinion, the Company is not a chit fund or a nidhi mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

14. In respect of dealing or trading in shares, securities; debentures and other investments.

The Company is maintaining timely proper records of the transaction and contracts for purchases or sales of shares, securities, debentures and other investment, and the same is held by the company, in its own name except few Shares held as investment are lying with broker.

15. In respect of guarantee given for loan taken by others

As informed to us, the Company has not given any guarantee for any loans taken by other from bank or financial institutions. Therefore, the provision of clause 4(xv) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

16. In respect of term loans taken

The term loan raised during the year and out standing at the beginning of the year was applied for the purpose for which it was taken.

17. In respect of fund used

According to the information and explanations given to us and overall examination of the Balance Sheet.of the Company, we report that no fund raised on short term basis have been used for long term investments.

18. In respect of preferential allotment of shares

The Company has not made any preferential allotment of shares during the year under review. Therefore, the provisions of clause 4(xviii) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

19. In respect of securities created for debentures

The Company has not issued any debentures. Therefore, the provisions of clause 4(xix) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

20. In respect of end use of money raised by public issue

During the year under review. The Company has not raised any money by way of public issues. Hence the question of verification of end use of money raised in public issue as per the provision of clause 4(xx) of the companies (Auditors Report) Order 2003 does not arise.

21. In respect of fraud

On the basis of our examinations and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of the audit.

For JANGID& ASSOCIATES Chartered Accountants

SAJJAN AGARWAL Place: Mumbai PARTNER

Dated; July 30,2009. M.No.102586

 
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