We have audited the accompanying standalone IND AS financial statements of BLOOM DEKOR LIMITED (UNDER
CIRP) (the "Company"), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including
Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on
that date and a summary of material accounting policies and other explanatory information (hereinafter referred to as the
"standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the
matter described in the Basis for Qualified Opinion section of our report, the aforesaid standalone financial statements give
the information required by the Companies Act, 2013 (the "Act") in the manner so required and give a true and fair view
in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31, 2024 and its losses, total comprehensive income, changes in
equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
The Company has trade payables in foreign currency outstanding for more than three years as at 31st March 2024
amounting to Rs. 131.77 lakhs payable to its foreign Suppliers. As explained to us, Currently Management / Resolution
Professional (RP) is in the process of evaluating appropriate course of action for compliance with Foreign Exchange
Management Act, 1999 and any other applicable law on account of delay in payment of above dues. However, we are
unable to comment on the likely outcome and its consequential impact on the financial statements for the year ended
31st March, 2024 for non-compliance with any provisions under FEMA Act, 1999 or any other applicable laws.
(Refer Note No. 37 of Standalone IND AS Financial Statement)
We conducted our audit in accordance with the Standards on Auditing ("SA"s) specified under section 143(10) of the Act.
Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the
Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are
relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder,
and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our Qualified audit
opinion on the standalone IND AS financial statements.
Material Uncertainty Related to Going Concern
The company is having accumulated losses (after taking into account the balance of reserves) of Rs 1238.89 lakhs as at
31.03.2024 and the net worth of the company is negative. This Indicates that material Uncertainty exists that may cast
significant doubt on the company's ability to continue as going concern and therefore the company may be unable to
realise its assets and discharge its liabilities in the normal course of business. The ultimate outcome of this matter is at
present not ascertainable. Accordingly, we are unable to comment on the consequential impact, if any, on the
accompanying standalone financial statement.
The above factors cast a significant uncertainty on the company's ability to continue as going concern. (Refer Note No. 38
of Standalone IND AS Financial Statement).
Our opinion is not modified on the above matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
standalone IND AS financial statements of the current period. These matters were addressed in the context of our audit of
the standalone IND AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
Emphasis of Matter
1. The company is having accumulated losses (after taking into account the balance of reserves) of Rs 1238.89 lakhs as
at 31.03.2024 and the net worth of the company is negative. This Indicates that material Uncertainty exists that may
cast significant doubt on the company's ability to continue as going concern and therefore the company may be
unable to realise its assets and discharge its liabilities in the normal course of business. The ultimate outcome of
this matter is at present not ascertainable. Accordingly, we are unable to comment on the consequential impact, if
any, on the accompanying standalone financial statement.
The above factors cast a significant uncertainty on the company's ability to continue as going concern. (Refer Note
No. 38 of Standalone IND AS Financial Statement).
2. The balance confirmation from the suppliers and customers have been called for, but the same are awaited till the
date of audit. Thus, the balances of receivables and trade payables have been taken as per the books of accounts
submitted by the company and are subject to confirmation from the respective parties. (Refer to Note no. 31 of
Standalone IND AS financial statements).
Our opinion is not modified on the above matters.
Other Matter
Refer Note 40 to the Standalone financial statements which states about, the Order of Hon'ble National Company Law
Tribunal (NCLT) Ahmedabad Bench dated 11th October, 2023 in CP(IB)/127/AHM/2020 which has admitted the
Corporate Debtor ('the Company') into Corporate Insolvency Resolution Process (CIRP) under section 9(5)(i) of the
Insolvency and Bankruptcy Code and appointed Ms Vineeta Maheshwari Insolvency Resolution Professional (IRP) and
thereafter she was confirmed as Resolution Professional in the meeting of Committee of Creditors.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors/ Resolution Professional(RP) is responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include the standalone IND AS financial
statements and our auditor's report thereon.
Our opinion on the standalone IND AS financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the standalone IND AS financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial
statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of this other information; we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone IND AS Financial Statements
The Order of Hon'ble National Company Law Tribunal (NCLT) Ahmedabad Bench dated 11th October, 2023 in
CP(IB) /127 / AHM/ 2020 which has admitted the Corporate Debtor ('the Company') into Corporate Insolvency Resolution
Process (CIRP) under section 9(5)(i) of the Insolvency and Bankruptcy Code and appointed Ms. Vineeta Maheshwari In¬
solvency Resolution Professional (IRP) and thereafter she was confirmed as Resolution Professional in the meeting of
Committee of Creditors. The Powers of the Board of Directors of the company are suspended and officers and managers of
the Corporate Debtors ("the Company") shall report to the Insolvency Resolution Professional (IRP) as per the provisions
of the Insolvency and Bankruptcy Code, 2016. Accordingly, the Insolvency Resolution Professional (IRP) is running the
CIRP and is looking after the affairs of the Company along with its managements.
The Company's Board of Directors /Resolution Professional (RP) is responsible for the matters stated in section 134(5) of
the Act with respect to the preparation of these standalone IND AS financial statements that give a true and fair view of the
financial position, financial performance, including other comprehensive income, changes in equity and cash flows of the
Company in accordance with the IND AS and other accounting principles generally accepted in India. This responsibility
also 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; and design,
implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone IND
AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the standalone IND AS financial statements, Board of Directors /Resolution Professional (RP) is responsible
for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Those Board of Directors /Resolution Professional (RP) are also responsible for overseeing the Company's financial
reporting process.
Auditor's Responsibilities for the Audit of the Standalone IND AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone IND AS financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone IND AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls system in place and the operating effectiveness of
such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the related disclosures in the standalone financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the standalone IND AS financial statements, including the
disclosures, and whether the standalone IND AS financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the standalone Ind AS financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
Report on Other Legal and Regulatory Requirements
1. As required by section 197(16) of the Act as amended, In our opinion and to the best of our information and according
to the explanation given to us, we report that the remuneration paid by the company to its directors during the year
in accordance with the provisions of section 197 of the act read with schedule V to the Act.
2. As required by the Companies (Auditor's Report) Order, 2020 (the "Order") issued by the Central Government in
terms of Section 143(11) of the Act, we give in " Annexure A" a statement on the matters specified in paragraphs 3 and
4 of the Order.
3. As required by Section 143(3) of the Act, based on our audit we report that:
a. We have sought and except for the matters described in the Basis for Qualified opinion, obtained all the
information and explanations which to the best of our knowledge and belief were necessary for the purposes of
our audit.
b. Except for the possible effects of the matter described in the Basis for Qualified opinion paragraph above and for
the matters stated in paragraph 3(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014, In our opinion, proper books of account as required by law have been kept by the Company
so far as it appears from our examination of those books.
c. The standalone Balance Sheet, the standalone Statement of Profit and Loss including Other Comprehensive
Income, standalone Statement of Changes in Equity and the standalone Statement of Cash Flows dealt with by
this Report are in agreement with the books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the IND AS specified under Section
133 of the Act.
e. The matters described in the paragraph on Basis of Qualified opinion and Emphasis of matters, in our opinion,
may have adverse effect on the functioning of the company.
f. On the basis of the written representations received from the directors as on March 31, 2024 taken on record by
the Board of Directors/ Resolution Professional (RP), none of the directors is disqualified as on March 31, 2024
from being appointed as a director in terms of Section 164(2) of the Act.
g. With respect to the adequacy of the internal financial controls with reference to the standalone financial
statements of the Company and the operating effectiveness of such controls, refer to our separate Report in
"Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the
Company's internal financial controls with reference to the standalone financial statements.
h. The Modification relating to the maintenance of accounts & other matters connected therewith, are stated in Basis
of Qualified Opinion paragraph and also stated in paragraph 3(b) above on reporting under section 143(3)(6) of
the act, and also stated at paragraph 3(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014;
i. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and
according to the explanations given to us;
I. The Company has disclosed the impact of pending litigations on its financial position in the standalone
Ind AS Financial Statements (Refer Note No 27 to the Standalone Ind AS Financial Statements).
II. The Company did not have any long-term contracts including derivative contracts for which there were
any material foreseeable losses.
III. During the year, there has been no delay in transferring amounts, required to be transferred to the
Investor Education and Protection Fund by the Company.
IV. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are
material either individually or in the aggregate) have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Company
to or in any other person or entity, including foreign entity ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether,
directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which
are material either individually or in the aggregate) have been received by the Company from any
person or entity, including foreign entity ("Funding Parties"), with the understanding, whether
recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material
misstatement.
V. The company has not declared and paid any Interim divided nor has proposed any final dividend
during the previous year, and hence the question of Compliance and applicability of Section 123 of the
Companies Act does not arise.
VI. Based on our examination, which included test checks, the Company has used accounting software for
maintaining its books of account for the financial year ended March 31, 2024 which has a feature of
recording audit trail (edit log) facility but the same feature has not been enabled during the year for all
relevant transactions recorded in the software. Hence, we are unable to comment on any instance of the
audit trail feature being tampered with.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023,
reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit
trail as per the statutory requirements for record retention is not applicable for the financial year ended
March 31, 2024.
For Parikh & Majmudar
Chartered Accountants
FR No. 107525W
[CA Satwik Durkal]
Partner
Date: May 30, 2024 Membership No. 107628
Place: Ahmedabad UDIN: 24107628bJzWRW4600
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