1. We have audited the attached Balance Sheet of M/s NCC BLUEWATER
PRODUCTS LIMITED as at 31st March 2014 and also the Profit and Loss
account for the year ended on that date annexed thereto and the cash
flow statement for the year ended on that date. These financial
statements are the responsibility of the Company's Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. 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 of material misstatement. An audit
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.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended, issued by the Central Government in terms of Sub-Section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matter specified in paragraph 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. 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.
ii. 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 such
books.
iii. The Balance Sheet, Profit & loss account and Cash flow statement
referred to in this report are in the agreement with the books of
account.
iv. The Balance Sheet, Profit & loss account and Cash Flow Statement
dealt with by this report comply with the Accounting Standards referred
to in Sub-section (3C) of Section 211 of the Companies Act, 1956.
v. On the basis of written representation received from the directors
and taken on record by the Board of Directors, we report that none of
the Directors of the Company is disqualified as on 31st March 2014 from
being appointed as a Director in term of clause (g) of sub section (1)
to section 274 of the Companies Act, 1956.
vi. We draw attention to the Note No.2 in the Notes on accounts
relating to preparation of financial statements on a going concern
basis. The company has discontinued its business. The accumulated
losses as at 31st March, 2014 have eroded the net worth of the company.
These factors along with the other matters set forth in Note No.2 raise
substantial doubt that the company will be able to continue as a going
concern.
5. Subject to Para (vi) above, in our opinion, and to the best of our
information and according to the explanations given to us, the said
accounts read with notes on accounts and the significant accounting
policies, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
accounting principles generally accepted in India:
i) In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2014.
ii) In the case of the Profit & Loss Account, of the loss for the year
ended on that date; and
iii) In the case of the Cash Flow Statement, of the Cash flows for the
year ended on that date.
ANNEXURE TO AUDITOR'S REPORT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT
OF EVEN DATE
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, the
management have physically verified the fixed assets during the year
and no material discrepancies were noticed on such verification.
(c) The company has not disposed off substantial part of fixed assets
during the Year.
ii. Clause (a), (b) & (C) not applicable since the company does not
have inventory.
iii. (a) The company has not granted any loans secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the companies Act, 1956 and therefore clauses
(b),(c) and (d) of Para (iii) of the companies (Auditor's Report)
Order,2003 are not applicable.
(b) The company has not taken any loans secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the companies Act, 1956,therefore, clauses (f) and
(g) of para (iii) of the companies (Auditor's Report) Order, 2003 are
not applicable.
iv. In our opinion and according to the information and explanations
given to us, the internal control systems for purchase of inventory and
fixed assets and for the sale of services are commensurate with size of
the company and nature of its business. During the course of audit we
have not observed any continuing failure to correct major weaknesses in
internal controls.
v. As there was no transaction requiring entries in Register in
pursuance of Section 301 of the Act and accordingly clauses
(a) and (b) are not applicable to the Company.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore, the provisions of Section 58A and 58AA of the Companies Act,
1956 and Rules there under are not applicable to the company.
vii. There is no internal Audit system in vogue for the period covered
by the Audit.
viii. In respect of this company, maintenance of cost records has not
been prescribed by the Central Government under Section 209 (1) (d) of
the Companies Act, 1956.
ix. According to the information and explanations given to us, the
company is regular in depositing undisputed statutory dues applicable
to it. According to the information and explanations given to us, no
undisputed amounts payable in respect of above were in arrears, as at
31st March, 2014 for a period of more than six months from the date on
which they became payable.
x. The company has accumulated losses eroding its net worth as at 31st
March 2014 and it has incurred cash losses in the financial year.
xi. According to the information and explanations given to us, the
company has not availed any loans from the Financial Institutions and
Banks. The Company has not issued any debentures.
xii. Based on the verification of records and according to the
information and explanations given to us, the company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. 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.
xiv. In our opinion, the Company is not dealing in 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.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans are availed
during the year.
xvii. According to the information and explanations 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 long term
investment. No long term funds have been used to short term asset.
Therefore the provisions of clause 4(xvi) of Companies (auditors
report) order, 2003 are not applicable to the Company.
xviii. The company has not made any preferential allotment to parties
and companies covered under register maintained under section 301 of
the Companies Act, 1956, during the year.
xix. According to the information and explanations given to us and the
records examined by us, no debentures were issued by the company.
xx. The Company has not raised any money through public issue during
the year.
xxi. 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.
For M. BHASKARA RAO & CO.
Chartered Accountants
Place: Visakhapatnam K. Krishna Murty
Date: 29.05.2014 PARTNER
M.No: 019693
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