Auditor Report of NCC Blue Water Products Ltd.

Mar 31, 2025

NCC BLUE WATER PROJECTS LIMITED

Report on the Indian Accounting Standards ( Ind AS) financial statements

Opinion

We have audited the accompanying Ind AS financial statements of NCC BLUE WATER PROJECTS LIMITED ("the Company”), which comprise the Balance Sheet as at 31^st March 2025, the Statement of Profit and Loss (including other comprehensive income) for the year then ended, the Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the Ind AS financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (" Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended, ("Ind AS)” and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2025, the Profit ( including Other Comprehensive Income), changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the Ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.

Material Uncertainty related to going concern

We draw your attention to Note No 22 of the financial statements regarding preparation of financial statements on a going concern basis considering the circumstances stated in the said note and pending crystallization of the company''s plans for revamping its operations.

Our opinion is not qualified in respect of the above matter. Key Audit Matters

Key Audit Matters are those matters that, in our professiona judgement, were of most significance in our audit of the financial statements for the current period. These matters were addressed in the context of the audit of the financia statements as a whole and in forming our opinion thereon we do not provide a separate opinion on these matters.

Management''s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 with respect to the preparation of these financial statements that give a true and fair view of the financial position anc financial performance and the Cash Flows of the company ir accordance with the Accounting Principles generally accepted in India, including the Accounting Standards specified undei section 133 of the Act read with Rule 7 of the Companies Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets o the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates thal are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from materia misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis o accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors is responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibility for the audit of financia statements

Our objectives are to obtain reasonable assurance abou whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013 we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosure are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We also communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Independent Auditor''s Report) Order, 2020 ("the Order”) issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act, we give in the”Annexure A'', a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 best of 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 the Company so far as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on 31^st March, 2025 taken on record by the Board of Directors, none of the directors are disqualified as on 31^st March, 2025 from being appointed as a director in terms of Section 164 (2) of the Act.

f) The provisions of section 197 of the Act do not apply to the Company, hence reporting under Section 143(3)(g) is not required.

g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its Ind AS financial statements.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund.

iv. a) The Management has represented that,

to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

b) The Management has represented, that, to the best of it''s knowledge and belief, to the accounts, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties”), with the understanding, whether recorded in

writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule ll(e) contain any material mis-statement.

d) The Company has not declared or paid any dividend during the year.

e) Based on our examination which included test checks, the company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions- recorded in the software. Further, during the course of our audit and on the basis of test checking of selected samples, we did not come across any instance of audit trail feature being tampered with.

K.P.Rao & Co.

Chartered Accountants Firm Reg. No. 003135S

Sd/-

Mohan R Lavi Partner

Place: Bangalore Membership No. 029340

Date: 23 May 2025 UDIN: 25029340BMKTIB9544

---

Mar 31, 2024

We have audited the accompanying Ind AS financial
statements of NCC BLUE WATER PROJECTS LIMITED
("the Company”), which comprise the Balance Sheet as at
31^st March 2024, the Statement of Profit and Loss (including
other comprehensive income) for the year then ended, the
Cash Flows and the Statement of Changes in Equity for the
year then ended and a summary of the significant accounting
policies and other explanatory information (hereinafter
referred to as "the Ind AS financial statements”).

In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
financial statements give the information required by the
Companies Act, 2013 ("Act”) in the manner so required
and give a true and fair view in conformity with the Indian
Accounting Standards prescribed under section 133 of the
Act read with the Companies (Indian Accounting Standards)
Rules, 2015 as amended, ("Ind AS)” and other accounting
principles generally accepted in India, of the state of affairs
of the Company as at 31^st March, 2024, the Profit ( including
Other Comprehensive Income), changes in equity and its cash
flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in
accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our
responsibilities under those Standards are further described
in the Auditor''s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India together with
the Ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies
Act, 2013 and the Rules there under, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion on the financial statements.

Material Uncertainty related to going concern

We draw your attention to Note No ... of the financial
statements regarding preparation of financial statements on
a going concern basis considering the circumstances stated
in the said note and pending crystallization of the company''s
plans for revamping its operations.

Our opinion is not qualified in respect of the above matter.

Key Audit Matters

Key Audit Matters are those matters that, in our professional
judgement, were of most significance in our audit of the
financial statements for the current period. These matters
were addressed in the context of the audit of the financial
statements as a whole and in forming our opinion thereon,
we do not provide a separate opinion on these matters.

Management''s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the
matters stated in section 134(5) of the Companies Act 2013,
with respect to the preparation of these financial statements
that give a true and fair view of the financial position and
financial performance and the Cash Flows of the company in
accordance with the Accounting Principles generally accepted
in India, including the Accounting Standards specified under
section 133 of the Act read with Rule 7 of the Companies (
Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of
the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgements and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the financial statements, management is
responsible for assessing the Company''s ability to continue
as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of
accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so.

The Board of Directors is responsible for overseeing the
Company''s financial reporting process.

Auditor''s Responsibility for the audit of financial
statements

Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor''s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken
on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional skepticism
throughout the audit. We also:

• Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.

• Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
section 143(3)(i) of the Companies Act, 2013 we are
also responsible for expressing our opinion on whether
the Company has adequate internal financial controls
system in place and the operating effectiveness of such
controls.

• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.

• Conclude on the appropriateness of management''s use
of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions
that may cast significant doubt on the Company''s
ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to
draw attention in our auditor''s report to the related
disclosures in the financial statements or, if such
disclosure are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor''s report. However, future
events or conditions may cause the Company to cease
to continue as a going concern including the disclosures
and whether the financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.

• Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures,
and whether the financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.

We also communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings including
any significant deficiencies in internal control that we identify
during our audit.

We also provide those charged with governance with a
statement that we have complied with relevant ethical

requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.

From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We
describe these matters in our auditor''s report unless law or
regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Independent Auditor''s Report)
Order, 2020 ("the Order”) issued by the Central Government
of India in terms of subsection (11) of Section 143 of the Act,
we give in the "Annexure A''; a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent
applicable.

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 best of 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 the Company so far as it appears
from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss
including other comprehensive income, the Cash Flow
Statement and Statement of Changes in Equity dealt
with by this Report are in agreement with the books of
account.

d) In our opinion, the aforesaid Ind AS financial statements
comply with the Indian Accounting Standards specified
under Section 133 of the Act, read with Companies
(Indian Accounting Standards) Rules, 2015, as amended
read with Rule 7 of the Companies ( Accounts) Rules,
2014.

e) On the basis of the written representations received
from the directors as on 31^st March, 2024 taken on
record by the Board of Directors, none of the directors
are disqualified as on 31^st March, 2024 from being
appointed as a director in terms of Section 164 (2) of
the Act.

f) The provisions of section 197 of the Act do not apply to
the Company, hence reporting under Section 143(3)(g)
is not required.

g) With respect to the other matters to be included in
the Auditor''s Report in accordance with Rule 11 of

the Companies (Audit and Auditors) Rules, 2014, in
our opinion and 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 financial
position in its Ind AS financial statements.

ii. The Company did not have any long-term
contracts including derivative contracts for which
there were any material foreseeable losses.

iii. There were no amounts which were required
to be transferred to the Investor Education and
Protection Fund.

iv. a)The Management has represented that, to the
best of its knowledge and belief, no funds have
been advanced or loaned or invested (either from
borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in
any other person(s) or entity(ies), including foreign
entities ("Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that
the Intermediary shall, directly or indirectly lend
or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

b) The Management has represented, that, to the best
of it''s knowledge and belief, to the accounts, no funds
have been received by the Company from any person(s)
or entity(ies), including foreign entities ("Funding
Parties”), with the understanding, whether recorded in
writing or otherwise, that the Company shall, directly

or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the
Ultimate Beneficiaries

c) Based on the audit procedures performed that have
been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that
has caused us to believe that the representations under
sub-clause (i) and (ii) of Rule 11(e) contain any material
mis-statement.

d) The Company has not declared or paid any dividend
during the year.

e) Based on our examination which included test checks,
the company has used an accounting software for
maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant
transactions recorded in the software. Further, during
the course of our audit and on the basis of test checking
of selected samples, we did not come across any
instance of audit trail feature being tampered with.

For K.P.Rao & Co.

Chartered Accountants

Firm Reg. No. 003135S

SD/-

Mohan R Lavi

Partner

Membership No. 029340

UDIN: 24029340BKBGEO9309

Place: Bangalore

Date: 24^th May 2024

---

Mar 31, 2014

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

---

Mar 31, 2013

1. We have audited the attached Balance Sheet of M/s NCC BLUEWATER PRODUCTS LIMITED as at 31st March 2013 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 2013 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.3 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, 2013 have eroded the net worth of the company. These factors along with the other matters set forth in Note No.3 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, they 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, 2013.

ii) In the case of the Profit & Loss Account, of the Profit 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.

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, 2013 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 2013 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

K. KRISHNA MURTY

Partner

M.No.19693

Place: Visakhapatnam

Date: 30.05.2013

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s NCC BLUEWATER PRODUCTS LIMITED as at 31st March 2012 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 2012 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' 2012 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' 2012.

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.

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) 0rder'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' 2012 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 2012 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

krishna murty

PARTNER

M.No.19693

Place: Visakhapatnam

Date: 30-05-2012

---

Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s NCC BLUEWATER PRODUCTS LIMITED as at 31st March 2011 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 2011 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, 2011 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, 2011.

ii) In the case of the Profit & Loss Account of the Profit 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 of 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, 2011 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 2011 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.

K. Krishna Murty PARTNER M.No:19693

Place : Visakhapatnam Date : 30.05.2011

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s NCC BLUEWATER PRODUCTS LIMITED as at 31st March 2010 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 Companys 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 (Auditors 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 2010 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, 2010 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, 2010.

ii) In the case of the Profit & Loss Account, of the Profit 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 AUDITORS 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 (Auditors 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 (Auditors 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 31 st March, 2010 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 2010 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 (Auditors 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 (Auditors 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.

K. Krishna Murty

Place: Hyderabad PARTNER

M.No:19693

Date: 28-05-2010