NCC BLUEWATER PRODUCTS LIMITED

The Directors present the 21st Annual Report of your Company along with the Audited Statement of Accounts for the year ended March 31,2014.

FINANCIAL RESULTS                                      (Rs. in Lakhs)

Particulars                                Year ended      Year ended
                                           31.03.2014      31.03.2013

Gross Income                                   15.76          11.41

Loss before Depreciation and taxation         (6.73)        (15.82)

Depreciation                                 (35.06)        (38.85)

Provision for Tax                               9.66          16.51

Profit / Loss after tax                      (32.12)        (38.15)

Add balance of loss brought forward 
from previous year                         (1228.17)      (1190.02)

Balance of Loss carried forward            (1260.30)      (1228.17)

Paid-up equity share capital                  775.00         775.00

Reserves excluding Revaluation Reserves        25.00          25.00

DIVIDEND:

In view of the loss suffered by the company, your Board regrets for its inability to recommend dividend for the year ended 31-03-2014

REVIEW OF OPERATIONS:

During the year your Company has earned a gross income of Rs.15.76 lakhs towards lease of land. The Company is exploring various alternatives available for restructuring its business.

COMMENTS OF AUDITORS:

The observations / comments made by the auditors in their report attached, have been suitably clarified / explained under the Notes to the Accounts.

CORPORATE GOVERNANCE:

In pursuance of clause 49 of the Listing Agreement entered into with the Stock Exchange, a separate section on Corporate Governance has been incorporated in the annual report for the information of the shareholders. A certificate from the Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under said clause also forms part of the Annual Report.

DIRECTORS:

Sri J S N Raju, Wholetime Director retires by rotation at the conclusion of the forthcoming Annual General Meeting and being eligible offers himself for reappointment.

AUDITORS:

M/s. M. Bhaskara Rao & Co., Chartered Accountants the retiring Auditors of the Company being eligible have offered them- selves for reappointment as Auditors to hold office upto the conclusion of the next Annual General Meeting.

EMPLOYEE RELATIONS:

Relations with the employees continued to be cordial. Your Directors place on record their sincere appreciation of the services rendered by all the employees of the Company.

PARTICULARS OF EMPLOYEES: The Company had no employee whose remuneration exceeds the limit fixed under Section 217 (2A). Therefore, there are no particulars furnished under Section 217(2A) of the Companies Act, 1956.

DISCLOSURES:

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPOTION AND FOREIGN EXCHANGE EARNINGS

The company did not have any activities either relating to Conservation of Energy or Technology Absorption and therefore the provisions relating to Conservation of Energy or Technology Absorption are not applicable. During the year under review there were no transactions involving foreign exchange inflow / outflow.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 217 (2AA) of the Companies Act, 1956, the Directors hereby state that

a) in the preparation of the annual accounts for the year ended March 31, 2014, applicable accounting standards have been followed along with proper explanations relating to material departures;

b) we have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31,2014 and of the loss for the year ended on that date:

c) we have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities and

d) the accounts for the year ended March 31, 2014 have been prepared on a going concern basis.

ACKNOWLEDGEMENTS:

Your Directors place on record their gratitude for the cooperation and valuable support received from the Banks, the State Government, shareholders of the company and look forward for the same in greater measure.

                                   For and on behalf of the Board

Place : Hyderabad         J S N Raju                U Jaya Chandra
Date : 29-05-2014      Wholetime Director               Director