| We have audited the attached Balance Sheet of Novagold Petro-Resources
Limited ('the Company') as at March 31, 2014 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 financial 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 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.
As required by the Companies (Auditor's Report) Order, 2003 (as
amended) (the Order) issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956,
we enclose in the Annexure 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 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 appears from our examination of
those books;
c. The balance sheet, 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, the balance sheet, profit and 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.
e. On the basis of the written representations received from the
directors, as on March 31, 2014, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2014 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 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 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;
* in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
* in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
* in the case of Cash Flow Statement, of the cash flows for the year
ended on that date
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to the auditors' report to the Members of
NOVAGOLD PETRO-
RESOURCES LIMITED (the Company) for the year ended March 31, 2014, We
report that:
1. (a) The Company has maintained proper records showing full
particulars, including qualitative details and situation of fixed
assets.
(b) Certain Fixed Assets have been disposed off by the company during
the year and certain were purchased during the year which have been
physically verified by the management during the year. There is a
regular programme of verification which is our opinion is reasonable
having regard to the size of the Company and the nature of its
business and assets. No material discrepancies were noticed on
verification.
(c) Disposed off fixed assets do not affect its going concern
assumption.
2. (a) The stock of finished goods and other Auxiliary items have been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
(b) The procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of the business.
(c) No material discrepancies have been noticed on physical
verification of stocks as compared to book records.
(d) We on the basis of an examination of stocks, are of the opinion
that the value of stock is fair and proper in accordance with the
normally accepted accounting principles and is on the same basis as in
the preceding year.
3. According to the information and explanations given to us, there
are no companies, firms or other parties listed in the register
maintained u/s. 301 of the Companies Act, 1956. Hence the matters
specified in paragraph 4(iii) with regard to loan taken/granted are
not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for
purchase of fixed assets, inventory and the sale of goods.
5. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the Act have been entered and the
transactions have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
1. The company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed there under are not applicable.
2. Considering the effectiveness of Internal cheque & Control system
in effect, management is of opinion that Internal Audit System is not
required at present.
3. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under clause (d) of sub-section 209 of the Companies Act, 1956 in
respect of services carried out by the Company.
4. According to the information and explanations given to us and based
on the basis of our examination of the books of accounts, the Company
has been regular in depositing undisputed statutory dues including
provident fund, income-tax, sales-tax, custom duty, investor education
and provident fund, wealth and any other statutory dues during the
year with the appropriate authorities. As explained to us m the
Company did not have any dues on account of employee state insurance,
excise duty and cess.
According to the information and explanations given to us, no
undisputed dues payable in respect of Income-tax, Sales-Tax,
Wealth-tax, Custom Duty and cess were outstanding at 31st March 2014
for a period of more than six months from the date they became
payable.
According to the information and explanations given to us, there are
no dues in respect of Sales tax, Income tax, Customs Duty, Wealth tax,
Excise Duty, and cess that have not been deposited with the
appropriate authorities on account of any dispute.
5. The Company has accumulated losses at the end of the financial year
and has not incurred cash losses in the financial year immediately
preceding such financial year.
6. The Company has neither taken any loans from a financial
institution and a bank nor issued any debentures.
7. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
8. The company is not a chit fund, nidhi, mutual benefit fund or a
society.
9. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures
and other investment.
10. To the information and explanation given to us, the Company has
not given any guarantee for loans taken by others from bank or
financial institutions.
11. According to the information and explanation given to us, the
Company has not raised any funds on short-term or long-term basis. All
assets have been funded by shareholders' funds.
12. The company has not made any preferential allotment of shares to
parties and companies covered in the registered maintained u/s.301 of
the Companies Act.
13. The Company has not raised any money by public issues during the
year.
14. According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the year.
FOR C B MEHTA & CO
Place : VADODARA CHARTERED ACCOUNTANT
Date : 01/09/2014 Sd/-
CHINMAY MEHTA
(PROPRIETOR)
M.NO.517103 |