We have audited the attached Balance Sheet of BLOOM INDUSTRIES LIMITED
 as at 31st March, 20 12 and also the Siatement of Profit and Loss and
 the Cash How statement of Ihe Company for the year ended on I hat date
 annexed thereto. These financial statements are Ihe responsibility ol
 the Company''s management. Our responsibility is 1o express an opinion
 on these financial statements based on our audit.
 
 1.  We conducted our audit in accordance wilh 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 tree of material misstatement. An audit
 includes examining, on a lesl 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 equaling the overall financial statement
 presentation. We believe that our audit providesa reasonable basis for
 ouropinlon.
 
 2.  As required, by the Companies (Auditor''s Report) OroerH2003 Issued
 by the Central Government of India In terms of Section 227(4A] of the
 Companies Act. 1956, We enclose in ihe annexure. a statement on the
 matters prescribed in paragraphs 4 and 5of thesaidorder,
 
 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
 tothebestof ourknowTedge 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 exam rnal ions of
 these books;
 
 (iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
 statement deait with by this report are in agreement with books of
 account;
 
 (iv) 1 n our opinion, th e Balance She el. Stateme nt of Profit and
 Loss and Cash How Statement dealt with by this report comply wilh 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, 2013, and taken on record by the Board of
 Directors, We report that none of the directors is disqualified as on
 31- March. 2012 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 tothebestof our information and according 1o the
 explanations given to us.  Ihe annexed accounts read with the Notes
 thereon given in Note No. 18*, give the information required by the
 Companies Act, 1955 (as amended) in the manner so required except
 Provision hr iiabitity towards tea ve 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 lo the above observations and read with notes thereon in Notes
 No. p18 the said accounts give a true and fair view ;-
 
 [a) In the case of Ba iance S heet, of the state Of affairs of the
 Ckmipany as at 31 March, 2012;
 
 (fa) In the case of the Statement of Profh and Loss, of the Prefit 
 for the yeaR ended on thal date.
 
 And c) fn the case of the Cash Flow Statement, of the cash fiows for
 the year ended on that date.
 
 Annex ure Relerred 1o in paragraph (2) of our report ol even date on
 the accounts for the year ended 31st March. 2012 of BLOOM INDUSTRIES
 LIMITED.
 
 1.  I n respect oflts fixed as seta:
 
 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 lo the size of the company and
 the nature of its assets. According 10 tha information and explanation
 given lo us.  no material discrepancies have been noticed on such
 verification.
 
 c) The compa ny ha s no I dis posed of f a substantia I part of fixed
 assets d u ring the yea r.
 
 2.  Jn res peet of its invento ri es:
 
 (a) The inventory has been physically verified during Ihe 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 o! 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 lo book records.
 
 3.  In respect of roans granted to parties covered in the register
 maintained u/s 301 of the Companies Act, 1956.
  
 (b) in our opinion the rate o! interest & other terms and conditions on
 which loan have been granted to the companies listed in the
 registermainiained under Section 301 of the Companies Act, 1956 are
 not, prima facie, prejudicial lo 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 Ihe terms &
 conditions.
 
 (d) There is no overdue amount of loan granted to the parties lisied in
 the register maintained under Section 301 of the Companies Act, 1956.
 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 mainlaince under Section 301 of the Companies Act. 1956. The
 maximum amount involved during ihe year was Hi. 3.00 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 nol, prima facie, prejudicial to the interest of the Company
 
 (g) The payment of the principal amount and interest thereon are
 regular.
 
 A.  Inrespect of intern aIcntro
 
 In our opinion and according to the explanations given to us, there are
 adequate internal control system commensurate with I he size ol the
 company and the nature of its business with regard to purchases of
 inventory, lixed assets and sale of goods and services. During the
 course of the audit we have not observed any continuing failure to
 conecl major weaknesses in internal control system,
 
 5.  In respect of transactions need to be entered fnlo 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 Ihe value of rupees live 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 p u bJic
 
 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 the re under does notarise.
 
 7.  In respect of interna* audit system
 
 In our opinion. The company has an adequate internal Audit system
 commensurate with its size and nature of its business.
 
 B.  In respect of ma i ntena nee of cos t records
 
 In the present case, the Ceniral 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 boote
 ofaccounttobemaintainedbvthecompanypursuanttosuchanonderdoesnotarise-
 
 9.  In respect of statutory dues:
 
 (a) According lolhe information and explanations given to us, the
 Company is regular in depositing wilh appropriate authorities
 undisputed statutory dues including Provident Fund, Investor Education
 and Proteclion Fund, Employees State Insurance, Income-Tax, Sales Tax,
 Service Tax, Wealth Tax Fringe Benefit Tax, Cusloms 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 respeel of Income Tax, wealth tax, sale
 lax, customs duly, excise duty, service lax, and cess were in arrears,
 as at 3f- March 2012 for a period of more lhan six months from Ihe date
 they became payable. Except Sen/iceTax& Cess amounting of Rs.5.76,B2o/-
 
 fc) 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.  Inrespect of accumulated losse sand cas hIosses
 
 The Company has accumulated losses at the end of the year however it is
 I ess than fifty percent of its nel worth. The Company has not incurred
 cash loss during the year as well as in the immediately
  
 It.  In respect of dues to financial Institution /banks / debentures
 
 According to the informal ton and explanation given to us and as per
 the our verification of records of trie company, the Company has not
 defaulted in repaymenl of dues to any financial institution, banks
 ordebenlure holder- asat the Balance Sheet dale.
 
 12.  En 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 I he basis of security by way of pledge on any shares, debentures
 and other securities. Iherefore, Ihe provisions of clause 4(xii) of Ihe
 companies (Auditor''s Report) Order 20O3 are not applicable to Ihe
 Company,
 
 13.  In respect of chit fund or a nidht mutual benefit
 
 In Ouropinion, the Company is not a chit fund ora nidhi mutual benefit
 fund/society Therefore, the provisions of clause 4(xiiil 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, debenlL-es
 and other investment.  Therefore, the provisions of clause A[x\v) of
 the Companies (Auditor''s Report) Order 2Q03 are not appl icable 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 Ukhs to Kotak
 Mahindra Bank Lid.  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.
 
 IT.  In respect of fund usod
 
 According to the information and explanations given to us and overall
 examination of the Balance Sheet of the Company, we report that na fund
 raised on short lerm basis have been used tor long term investments.
 
  
 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, Ihe provisions of
 dause 4(xix) of the Companies (Auditor''s Report) Order2003 are not
 applicable to the Company
 
 20, In respect of end use of money raised by public issue
 
 During Ihe year under review. The Company has not raised any money by
 way of public issues.  Hence the question pf verification of end use of
 money raised in public issue as per the provision of clause 4(xx) of
 the companies (Auditor''s Report) Order2003 does not arise.
 
 21.  In respect of fraud
 
 On the basis of our examinations ana 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; 13/03/2012                                    MANOJ JAIN
 
                                                         PARTNER 
 
                                           Membership No. 120788