1.  We have audited the attached Balance Sheet of Gujarat State
 Petronet limited, Gandhinagar as at 31st March, 2011 and also the Profit
 & Loss Account for the year ended on that date annexed thereto and 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 (Auditors'' Report) Order, 2003 issued
 by the Central Government of India in terms of section 227 (4A) of the
 Companies Act, 1956, we enclose in the Annexure a statement on the
 matters specified in paragraphs 4 & 5 of the said order.
 
 4.  Further to our comments in the Annexure referred to in paragraph
 above, we report that:
 
 a.  We have obtained all information and explanations which, to the
 best of our knowledge and belief were necessary for the purpose of our
 audit;
 
 b.  In our opinion proper books of accounts, as required by law have
 been kept by the Company so far as it appears from our examination of
 the books;
 
 c.  The Balance Sheet and Profit & Loss Account and Cash Flow Statement
 dealt with by the report are in agreement with the Books of Accounts.
 
 d. In our opinion, the Balance Sheet and Profit & Loss Account and Cash
 Flow Statement comply with the Accounting Standards referred to in sub
 section (3C) of section 211 of the Companies Act, 1956.
 
 e.  As the Company is a Government Company, in terms of notification no.
 G.S.R. 829(E) dated 21st October, 2003, issued by Department of Company
 Affairs, Ministry of Finance, the clause (g) of subsection (1) of
 section 274 of the Companies Act, 1956 is not applicable.
 
 f.  In our opinion and to the best of our information and according to
 the explanations given to us, the said accounts read together with the
 accounting policies and notes on 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.
 
 I] In case of Balance Sheet, of the state of affairs of the Company as
 at 31st March, 2011;
 
 II] In case of Profit & Loss Account, of the Profit for the year ended 
 on that date and;
 
 III] In case of Cash Flow Statement, of the cash fow for the year ended
 on that date.
 
 ANNEXURE TO THE AUDITOR''S REPORT
 
 (Referred to in paragraph 3 of our Report of even date on the Accounts
 of Gujarat State Petronet limited, Gandhinagar for the year ended on
 31st March, 2011)
 
 1.  a.  The Company has maintained proper record showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 b.  We are informed that during the year fixed assets were physically
 verified by the management and no material discrepancies were noticed
 between the books records and physical existence of assets.
 
 c.  No substantial part of fixed assets have been disposed off during
 the year as would affect going concern status of the company.
 
 2.  There was no stock of fnished goods and raw materials; hence the
 points relating to physical verification, procedure of physical
 verification discrepancies noticed on such verification and valuation
 thereof do not arise. Further, we are informed that the stock of
 stores, spare parts etc. were physically verified by the management and
 that no material discrepancies were noticed.
 
 3.  (a&b) The Company has neither granted nor taken any loans from
 companies, forms or other parities listed in the Register maintained
 under section 301 of the Companies Act, 1956 or to a Company under the
 same management. Therefore, requirement of subclause (b),(c),(d) and
 (f) of clause (iii) of the order are not applicable to the Company.
 
 4.  In our opinion the Company has an adequate Internal Control System
 commensurate with the size of the Company and nature of its business
 with regard to purchases of inventory & fixed assets and for sale of
 goods & services. During the course of audit, we have not observed any
 major weakness in the internal controls.
 
 5.  a There are no transactions that need to be entered into register
 in pursuance of section 301 of the Act. Therefore, requirement of
 sub-clause (b) of clause (v) of the order is not applicable to the
 Company.
 
 6.  In our opinion and according to information and explanation given
 to us, the Company has not accepted deposits from the public during the
 year 2010-2011 within the meaning of section 58A, 58AA and other
 relevant provisions of the Act.
 
 7.  Internal Audit of the Company is entrusted to the firm of Chartered
 Accountants. The system is commensurate with the size and nature of the
 activities of the Company.
 
 8.  As informed to us the maintenance of cost records has not been
 prescribed by the Central Government to the Company pursuant to Rules
 made by the Central Government for the maintenance of cost records
 under section 209 (1) (d) of the Companies Act, 1956.
 
 9.  (a) According to the information and explanation given to us, there
 are no undisputed dues payable in respect of Provident Fund, Investor
 Education & Protection Fund, Employees State Insurance, Excise Duty,
 Cess and any other statutory dues which are outstanding as at 31st
 March, 2011 for a period of more than six months from the date they
 became payable.
 
 (b) The details of service tax & income tax not deposited on account of
 dispute is as per the clause no. (c),(d),(e),(f) & (g) of point no.2 of
 the notes on accounts.
 
 10.  The Company has been registered for a period for more than fve
 years and it has no accumulated losses. The Company has not incurred
 cash losses in the period under audit and in the immediately preceding
 financial year Therefore, the requirement of clause (x) of paragraph 4
 of the Order is not applicable to the Company.
 
 11.  According to the records of the Company examined by us and on the
 basis of information and explanations given to us the Company has not
 defaulted in repayment of dues to a financial institution or bank or
 debenture holders.
 
 12.  As per the information and according to the explanations given to
 us the Company has not granted any loans & advances on the basis of
 security by way of pledge of other securities, and therefore
 requirement of clause (xii) of pars 4 of the order is not applicable to
 the Company.
 
 13.  The Company is not a Chit Fund, Nidhi or Mutual benefit Society.
 Hence, the requirement of clause (xiii) of paragraph 4 of the order is
 not applicable to the Company.
 
 14.  According to the information and explanation given to us, the
 Company is not dealing in shares, securities, debentures and other
 investments and therefore requirement of clause (xiv) of pars 4 of the
 order is not applicable to the Company.
 
 15.  The Company has not given any guarantee for loans taken by the
 others from banks or financial institutions.
 
 16.  The term loans obtained were applied for the purpose for which the
 loans were obtained.
 
 17.  No funds raised for short term requirements have been used for
 long-term investment.
 
 18.  During the year under audit, the Company has not made any
 preferential allotment of shares to parties and companies covered in
 the Register maintained under section 301 of the Act.
 
 19.  During the year under audit, Company has not issued any debenture
 and therefore requirement of clause (xix) of the order is not
 applicable to the Company.
 
 20.  During the year under audit, Company has not raised any money by
 way of public issue and therefore the requirement of clause (xx) of
 paragraph 4 of the order is not applicable to the Company.
 
 21.  According the information and explanation given to us, a fraud on
 or by the Company has not been noticed or reported during the period
 under audit.
 
 
                                          for P Singhvi & Associates
 
                                          Chartered Accountants
 
                                          F. R. No. 113602 W
 
                                         (Praveen Singhvi)
 
 Place: Ahmedabad                         Partner
 
 Date : 8th June, 2011                    M. No. 071608