Bloom Dekor Ltd

To the Members of

BLOOM DEKOR LIMITED.

We have audited the attached Balance Sheet of 'Bloom Dekor Limited', as at 31stMarch, 2009 and also the Profit and Loss Account and the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these statements based on our audit.

We conducted our audit in accordance with 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 free from material misstatement. An audit also includes examining, on a test 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 evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to above, 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 far as appears from our examination of those books;

c) The Balance Sheet the profit and Loss Account and Cash Flow statement dealt with by this report, are in agreement with the books of account;

d) In our opinion. Balance Sheet, Profit and Loss and Cash Flow statement comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956, except (1) to the extent of non provision of excise duty on finished goods not cleared from the factory and corresponding equivalent amount not considered in valuation of inventories as stated in Note No. B) 7 (1) of schedule 19. However, this has no impact on the profit for the year.

e) On the basis of written representation received from the directors, as on 31/03/2009 and taken on record by the board of directors. We report that none of the director is disqualified as on 31stMarch, 2009 from being appointed as director in terms of clause (g) of Section 274(1) of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to the remarks in Para d) above, read together with Significant Accounting Policies, and Notes thereon give the information required by the Companies Act, 1956, In the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :

i) in case of the Balance Sheet, of the state of affairs of the Company as at March31st, 2009;

ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

iii) in case of the Cash Flow Statement, of the cash flows for the year ended on that date.

(Referred to in paragraph 3 of our report of even date on the accounts of Bloom Dekor Limited for the year ended March 31, 2009)

1. Fixed Assets:

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) All fixed assets have not been physically verified by the management during the year, but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of it's asset. As informed to us, no material discrepancies were noticed on such verification.

c) In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. Inventories:

a) The inventory has been physically verified during the year at year-end by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, and according to the information and explanations given to us, 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) In our opinion and according to the information and explanations given to us, and on the basis of our examination of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

3. Loans taken / granted:

a) The Company has not granted loans to any companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956. Consequently, requirements of clauses (iii.a) to (iii.d) of paragraph 4 of the order are not applicable;

b) The Company had taken loan from two party covered in the Register maintained under section 301 of the Companies Act, 1956, aggregating to Rs.4.27 Lakhs. The maximum amount involved was Rs.15.09 Lacs.

c) This is interest free deposit. In our opinion, other terms and conditions of this loan taken were not prima facie prejudicial to the interests of the Company.

d) The term of repayment is not stipulated.

4. Internal Control:

In our opinion and according to the information and 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 with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

5. Transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

a) According to the information and explanation given to us, we are of the opinion that the company has entered all the particulars of contracts or arrangements referred to in Section 301 of Companies Act, 1956.

b) Based on the information and explanations given to us, it is our opinion that these transactions have been made at prima facie reasonable prices, having regard to the prevailing market prices at the relevant time and certain lot sale or second sale, if any, are at market available rate.

6. Public Deposit:

In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within meaning of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder.

7. Internal Audit:

In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8. Cost Records:

To the best of our knowledge and according to information given to us, the central government has not prescribed maintenance of cost records under section 209 (1d) of the Companies Act, 1956, in respect of the activities carried on by the company.

9. Statutory Dues:

a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Value Added Tax, Customs Duty, Excise Duty and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2009, for a period of more than six months from the date of becoming payable.

b) According to information and explanation given to us, and the records examined by us, the particulars of dues of value added tax, excise duty and Income Tax which have not been deposited on account of any dispute, are as under

10. Accumulated losses:

The company has no accumulated losses as at 31st March, 2009 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

11. Repayment default:

Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks.

12. Loans and Advances:

According to information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4 (xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

13. Chit Fund etc:

The provisions of any Special Statute applicable to chit fund, nidhi or mutual benefit fund/societies are not applicable to the Company.

14. Trading in Shares etc:

According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order 2003 are not applicable to the Company.

15. Guarantee for other:

In our opinion and according to the information and explanations given to us, the terms and conditions of guarantee given by the Company for loans taken by other from bank and financial institutions is prima facie, not prejudicial to the interests of the Company.

16. Term Loans:

To the best of our knowledge and belief and according to the information and explanation given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained.

17. Sources and Application of Fund:

According to the information and explanation given to us, and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for the purpose of long term investment.

18. Preferential Allotment:

The Company has not made preferential allotment of equity share during the year under Audit.

19. Issue of Debentures:

The company has not issued any debentures. Accordingly, the provision of clause 4 (xix) of the Companies (Auditor's Report) Order, 2003 is not applicable to the company.

20. Public Issue:

The Company has not raised money by any public issues during the year and, hence, the question of disclosure and verification of end use of such money does not arise.

21. Fraud:

To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.