1. We have audited the attached balance sheet of GUJARAT NARMADA
FLYASH COMPANY LIMITED as at 31st March, 2012 and the profit and loss
account for the period 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.
2. We cond ucted our audit in accordance with the 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 in significant estimates made
by management, as well as evaluating the ove rall financial statement
presentation. We believe that our audit provides a reasonable basis of
3. In our opinion and according to the information and explanations
given to us, the Companies (Auditor''s Report) Order, 2003 issued by
the Central Go vernment of India in terms of sub - section (4A) of
section 227 of the Companies Act, 1956, is not applicable to the
4. Further to our comments in the Annexure referred to above, we
a. We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purposes of our
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
c. The balance sheet and profit and loss account dealt with by this
report are in agreement with the books of account and with the audited
returns from the branches;
d. In our opinion, the balance sheet and profit and loss account 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 written representations received from the
directors, as on 31 st March, 2012 and taken on record by the Board of
Directors, we report that none of the direc tors is disqualified as on
31 st March,2012 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 five 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 the case of the balance sheet, of the state of affairs of the
company as at 31 st March,2012 and
ii. In the case of profit and loss account, of the loss for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
TO THE MEMBERS OF M/S . GUJARAT NARMADA FLYASH COMPANY LIMITED
(REFERRED TO IN PARAGRAPH 3 there of )
(1) (a) The company has maintained generally proper records showing
full particulars including quantitative details and situation of fixed
(b) As explained to us, the Management has physically verified the
Company''s fixed assets duri ng the year and no material discrepancies
were noticed on such verification.
(c) During the year, the company has not disposed off a major part of
the fixed assets.
(2) (a) The Inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(3) (a) According to the information and explanations given to us, the
company has not granted and taken loans and advances from companies,
firms or other parties listed in the registers maintained under section
301 and the companies under the same management.
(b) In our opinion , the rate of interest and other terms and
conditions on which loans have been taken from / granted to companies,
firms or other parties listed in the registers maintained under Section
301 are not , prima facie prejudicial to the company, if any.
(c) The company is regular in repaying the princip al amounts as
stipulated and has been regular in the payment of interest wherever
applicable. The parties have repaid principal amounts as stipulated and
have been regular in payment of interest wherever applicable, if any.
(d) There is no overdue am ount of loans taken from or granted by the
companies, firms or other parties listed in the register maintained
under Section of 301 of the Companies Act , 1956.
(4) In our opinion and according to the information and explanation
given to us, there a re adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventories, fixed assets and with
regard to the sale of goods, if any.
(5) (a) According to the information and explanations given to us, We
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year h ave been
(6) The company has not accepted deposit from public coming under the
purview of section 58 A of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rule, 1975.
(7) In Our Opinion the company has an internal Audit System
Commensurate with the size of the company and its nature of business.
(8) The Central Government has not prescribed maintenance of the cost
records under Section 209 (1) (d) of the Companies Act, 1956 in respect
of the products manufactured by the company.
(9) In our opinion, the accumulated losses at the end of the year more
than fifty percent of its net worth and has incurred cash losses during
the financial year cover ed by our audit.
(10) The company has made defaulted in repayment of dues to financial
institutions, Financial institute for the recovery of dues with
honorable Debt recovery Tribkunal has filed recovery suit.
(11) According to the information and explanat ions given to us, the
company has not granted any loan or advance on the basis of security by
way of pledge of shares or debentures or any other securities.
(12) 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
(13) In our opinion, the company is not dealing in or trading shares,
securities, debentures and other investments. Acco rdingly, the
provisions of clause 4 (xiv) of the Companies (Auditors'' Report)
Order, 2003 are not applicable to the company.
(14) In our opinion, the company has not given any guarantee for loans
taken by others from banks or financial institutions and hence the
provisions relating to clause 4 (xv) are not applicable to the Company.
(15) Clauses is not applicable as no term loans been raised during the
(16) According to the information and explanation given to us and on
overall examination of balance sheet of the company, We report that no
short term funds have been used for long term purposes not long term
funds are used for short term purposes.
(17) According to the information and explanation given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
(18) No debentures have been issued during the year.
(19) The company has not raised any money by public issue during the
(20) According to the information and explanation give to us, no fraud
on or by the company has been noticed or reported during the course of
For Shirish Dalal & Associates
Place: Ahmedabad Shirish Dalal
Date: 31-08-2012 (Proprietor)