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Bloom Industries Ltd.

BSE: 513422 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE373E01015
BSE 00:00 | 26 Mar Bloom Industries Ltd
NSE 05:30 | 01 Jan Bloom Industries Ltd
OPEN 6.22
PREVIOUS CLOSE 6.22
VOLUME 4000
52-Week high 6.22
52-Week low 4.24
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.22
CLOSE 6.22
VOLUME 4000
52-Week high 6.22
52-Week low 4.24
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bloom Industries Ltd. (BLOOMINDS) - Auditors Report

Company auditors report

To

The Members of

BLOOM INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Bloom Industries Limited("the Company") which comprise the balance sheet as at March 31 2017thestatement of profit and loss and the cash flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

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 andmatters which are required to be included in the audit report under theprovisions of the Act and theRules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthedisclosures in the financial statements. The procedures selected depend on theauditor’s judgmentincluding the assessment of the risks of material misstatement ofthe financial statements whether dueto fraud or error. In making those risk assessmentsthe auditor considers internal financial controlrelevant to the Company’s preparationof the financial statements that give a true and fair view in orderto design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimatesmade by the Company’s Directors as well as evaluating theoverall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

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 March31 2017 its profit and its cash flows for the year ended on that date.

The Company has sold its entire Fixed Assets during the year under review. However theManagement is of the opinion that the going concern status of the Company will not beeffected due to such sale as the Company will continue to carry out its operations butbusiness module will change.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in the paragraphs 3 and 4 of the Order to the extent applicable.

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 purpose of our audit;

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

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

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us;

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii. There is no amount required to be transferred to the Investor Education andProtection Fund by the Company.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accounts maintainedby the Company. Refer Note 31 to the financial statements.

FOR SARDA SONI ASSOCIATES LLP

Chartered Accountants

ICAI Reg. No. 117235W

(Manoj Jain)

Partner

Membership No.: 102788

Place :Mumbai

th

Dated: 30 May 2017

ANNEXURE – ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements"of our report of even date)

(I) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has regular programme of physical verification of its fixed assets bywhich all the fixed assets are verified in a phased manner on yearly basis. In ouropinion the periodicity of physical verification is reasonable having regard to the sizeof the Company and nature of its assets. No material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company. The Company has sold its entire Fixed Assets during theyear under review. However the Management is of the opinion that the going concern statusof the Company will not be effected due to such sale as the Company will continue to carryout its operations but business module will change.

(ii) Since the Company does not have any inventory the paragraph 3(ii) of the saidOrder is not applicable to the Company.

(iii) The company has granted unsecured loans to a party covered in the registermaintained under sections 189 of the Act.

(a) The terms and conditions of the grant of such loan are not prejudicial to thecompany’s interest.

(b) The terms of arrangements do not stipulate any repayment schedule and the loans arerepayable on demand. Accordingly paragraph 3(iii) (b) of the Order is not applicable tothe Company in respect of repayment of the principal amount.

(c) There are no overdue amounts of more than ninety days in respect of the loansgranted to the parties covered in the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans guarantee of security and investments made.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year from the public to which thedirectives issued by the Reserve Bank of India and the provisions of Sections73 to 76 andany other relevant provisions of the Act and the rules framed thereunder apply.

(vi) In our opinion and according to the information and explanations given to us theCentral

Government has not prescribed maintenance of cost records under sub-section (1) ofSection 148 of the Act.

(vii) (a) According to the information and explanations given to us the Company hasbeen generally regular in depositing undisputed statutory dues including provident fundincome tax service tax cess and any other statutory dues with the appropriateauthorities. There are no arrears of outstanding statutory dues as at the 31 March 2017.for a period of more than six months from the date they became payable Exceptprofessional tax amounting of Rs14425/-. As informed statutory dues in the nature ofemployee state insurance sales tax duty of customs duty of excise and value added taxare not applicable to the Company.

(b) The Company has received a summary assessment order U/s.115WE of Income Tax Act.1962 for FBT for Assessment year 2008-2009 on which a demand for Rs.34000/- is raisedHowever on the same demand credit for Self Assessment (FBT) Tax paid is Rs.29699/- werenot given. The Company has filed a reply to the concern authority for rectification oforder and according to the management of the company there is no tax due hence provisionnot required.

(viii) In our opinion and according to information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to banks financialinstitutions or government. The Company has not issued any debentures.

(ix) Based on information and explanations given to us the company has not taken anyterm loans from any banks or financial institution during the year. The Company has notraised any money by way of initial public offer or further public offer (including debtinstruments).

(x) According to the information and explanations given to us we have neither comeacross any instance of fraud by the company or any fraud on the company by its officersand employees noticed or reported during the year nor have we been informed of any suchcases by the management.

(xi) Based on information and explanations given to us the company has not paid anymanagerial remuneration during the year and thereforeprovision of Section 197 read withSchedule V of the Act is not applicable to the company.

(xii) 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) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

FOR SARDA SONI ASSOCIATES LLP

Chartered Accountants

ICAI Reg. No. 117235W

(Manoj Jain)

Partner

Membership No.: 102788

Place :Mumbai

th

Dated: 30 May 2017

ANNEXURE – ‘B’ TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2(f) under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BloomIndustries Limited ("the Company") as of 31 March 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management’s 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 (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 judgment 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

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 31 March 2017 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 SARDA SONI ASSOCIATES LLP

Chartered Accountants

ICAI Reg. No. 117235W

(Manoj Jain)

Partner

Membership No.: 102788

Place :Mumbai

Dated: 30 May 2017