To the Members of Bloom Dekor Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Bloom Dekor Limited ( theCompany ) which comprise the Balance Sheet as at March 31 2016 the Statement of Profitand Loss and Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ( the act ) with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014.This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act and otherapplicable authoritative pronouncement issued by the Institute of Chartered Accountants ofIndia. Those Standards and pronouncement require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.
In making those risk assessments the auditor considers internal financial controlrelevant to the Company s preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on whether the Company has in place anadequate internal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany s management and Board of Directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 its 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 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section143 of the Act (hereinafterrefer to as the Order ) and on the basis of such checks of books and records of thecompany as we consider appropriate and according to Explanation given to us we give inthe Annexure A 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 report that:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books; and Proper Returns adequatefor the purpose of our audit have been received not visited by us.
c) The reports on the accounts of the branch offices of the Company audited underSection143 (8) of the Act by us have been properly dealt with by us in preparing thisreport.
d) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
e) In our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
f) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct.
g) With respect to adequacy of the internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to our separatereport in Annexure B and
h) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i. The Company does not have any pending litigations which would impact its financialposition except otherwise stated in Para No of 1(e) (f) & (g) of notes on accountsgiven in Note No 2.
ii. The Company did not have any long-term contracts including derivative contracts; assuch 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 reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.
ANNEXURE TO INDEPENDENT AUDITORS REPORT
(Referred to in Paragraph 1 of the Auditors Report of even date to the members of BloomDekor Limited on the financial statements as of and for the year ended March 31 2016)
I. Fixed Assets:
a) The Company has generally maintained proper Records showing full particularsincluding quantitative details & situation of Fixed Assets on the basis of availableinformation. However they are not fully updated.
b) All fixed assets have not been physically verified by the management during theyear but there is a regular program of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. As informed to usno material discrepancies were noticed on such verification.
c) The title deeds of immovable properties as disclosed in the Note 12 on fixed assetsto the financial statements are held in the name of the Company.
a) The inventory has been physically verified during the year at the year-end by themanagement. In our opinion the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are reasonableand 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 onthe basis of our examination of records of inventory the Company is generally maintainingproper records of inventory.
The discrepancies noticed on physical verification of inventory as compared to the bookrecords 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 orother parties covered in the Register maintained under section 189 of the Companies Act2013. Therefore the provisions of para 3 clause iii (a) & (b) & (c) of the saidOrder relating to matters to be included in audit report are not applicable to theCompany.
IV. Loans to the Parties:
The company has not granted any loans or made any investments or provided anyguaranteed or securities to the parties covered under Section 185 and Section 186.Therefore the provisions of Clause 3(iv) of the said Order are not applicable to theCompany.
V. Public Deposit:
In our opinion and according to the information and explanation given to us thecompany has not accepted any deposits from public hence the directives issued by theReserve Bank of India & the provisions of Section 73 to 76 of the Company Act2013 orany other relevant provisions of the Act and rules there under are not applicable.
VI. Cost Records:
According to the information and explanation given to us pursuant to the rules made bythe Central Government of India the Company is not required to maintain cost records asspecified under Section 148(1) of the Act in respect of its products.
VII. Statutory Dues:
a) According to the information and explanation given to us and the records of theCompany examined by us In our opinion the company is generally regular in depositingundisputed statutory dues in respect of Provident Fund Income Tax Sales Tax ServiceTax Customs Duty Excise Duty Value Added Tax Cess and other statutory dues applicablewith the appropriate authority except the following.
|Sr. No. ||Name of the statute ||Nature of dues ||Asst. Year ||Amt(In Lakh) |
|1 ||Income Tax Act 1961 ||TDS Default ||2016-17 ||3.10 |
|2 ||Income Tax Act 1961 ||TDS Default ||2015-16 ||1.88 |
|3 ||Income Tax Act 1961 ||TDS Default ||2014-15 ||2.40 |
|4 ||Income Tax Act 1961 ||TDS Default ||2013-14 ||2.22 |
|5 ||Income Tax Act 1961 ||TDS Default ||Prior to 2013-2014 ||6.92 |
|6 ||Income Tax Act 1961 ||Income TaxU/s 143(1)(a) ||2009-10 ||0.05 |
|7 ||Gujarat Sales Tax ||CST ||2008-2009 ||2.96 |
b) According to the information and explanation given to us the record examined by usthe particulars of dues of Income Tax Sales Tax Wealth Tax Service Tax Customs DutyExcise Duty Value Added Tax Cess which have not been deposited on account of anydispute are as under:
VIII. Repayment Default
|Sr. No. ||Name of the statute ||Nature of dues ||Period to which the amounts relates ||Forum where dispute is pending ||Appeal by ||Amt (In Lakh) |
|1 ||Income Tax Act1961 ||Income Tax ||1995-96 ||CIT(A) ||Company ||0.56 |
|2 ||Income Tax Act1961 ||Income Tax ||2000-01 ||High Court ||Company ||56.00 |
|3 ||Income Tax Act1961 ||Income Tax ||2001-02 ||High Court Restored back the issue to AO ||Company ||52.25 |
|4 ||Income Tax Act1961 ||Income Tax ||2002-03 ||CIT(A) ||Company ||21.30 |
|5 ||Income Tax Act1961 ||Income Tax ||2003-04 ||I.T.A.T. ||Company ||28.71 |
|6 ||Income Tax Act1961 ||Income Tax ||2007-08 ||I.T.A.T. ||Department ||15.67 |
|7 ||Income Tax Act1961 ||Income Tax u/s 143(3) ||2013-14 ||CIT(A) ||Company ||12.27 |
|8 ||Gujarat Sales Tax ||Sales Tax ||F.Y.2004-05 ||Commissioner -Appeal ||Company ||3.70 |
|9 ||Gujarat Sales Tax ||Sales Tax ||F.Y.2005-06 ||Commissioner -Appeal ||Company ||2.28 |
|10 ||Gujarat Sales Tax ||Sales Tax ||F.Y. .2011-12 ||Commissioner -Appeal ||Company ||19.63 |
|11 ||Central Excise ||Excise Duty ||F.Y.2011-12 ||Tribunal ||Company ||0.63 |
|12 ||Central Excise ||Excise Duty ||F.Y.2012-13 ||Commissioner -Appeal ||Company ||0.90 |
|13 ||Central Excise ||Excise Duty ||F.Y.2007-08 to 2009-10 ||Tribunal ||Company ||2.08 |
|14. ||Central Excise ||Excise Duty ||F.Y.2014-15 ||Commissioner -Appeal ||Company ||28.51 |
According to the records of the company examined by us and the information andexplanation given to us the company has not defaulted in repayments of loans orborrowings to any financial institution or bank or Government or due to Debenture holderas at the Balance Sheet Date.
IX. Capital Raised/Term Loan:
The company has not raised any monies by way of initial public offer further publicoffer (Including debt instruments) during the year. In our opinion & explanationsgiven to us the term loans were applied for the purposes for which the loans wereobtained.
During the course of our examination of the books and records of the company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information explanation given to us we have not come across any instance of anymaterial fraud by the company or any fraud on the Company by its officers or employees norhas been noticed or reported during the year.
XI. Managerial Remuneration:
According to the record of the company examined by us and the information andexplanations given to us the company has paid/ provided for managerial remuneration inaccordance with the requisite approval mandated by the provision of Section 197 read withSchedule V to the Act.
XII. Nidhi Company:
In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
XIII.Related Party Transactions:
The company has entered into transactions with related party in a compliance with theprovisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under by theapplicable Accounting Standards.
XIV. Preferential Allotment:
The company has not made any preferential allotment or private placement of shares orfully or partly convertible debenture during the year under review. Accordingly theprovision of clause 3(xiv) of the order is not applicable to the company.
XV. Cash Transactions with Directors:
According to the record of the company examined by us and the information andexplanations given to us the company has not entered into any non cash transactions withits Directors or person connected with them. Accordingly the provisions of clause 3(xv)of the order are not applicable to the company.
XVI. Registration U/S 45-IA of RBI Act
According to the information and explanations given to us the company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordinglythe provisions of clause 3(xvi) of the order are not applicable to the company.
"Annexure B" to the Independent Auditor s Report of even date on theStandalone Financial Statements of Bloom Dekor Limited Report on the Internal FinancialControls (under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act"))
We have audited the internal financial controls over financial reporting of Bloom DekorLimited ( the Company ) as of March 31 2016 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Company s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company s policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the Guidance Note ) and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor s judgments including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company s internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company s internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company s internal financial control over financialreporting includes those policies and procedures that;
1. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company s assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting Because ofthe inherent limitations of internal financial controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For Dharmendra Shah & Co. |
| ||Chartered Accountants |
| ||CA Dharmendra H. Shah |
| ||Proprietor |
|Place : Ahmedabad ||Mem. No.: 036809 |
|Date : May 17 2016 ||FRN No.102474W |