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
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