Gujarat Narmada Flyash Co Ltd Management Discussions

The Company is in the business of financial activity. The key issues of the Management Discussion and Analysis are given below.

(a) Industry Structure and Developments

The company is engaged in manufacture and trading of flyash but presently the said business is not giving any substantial earning to the Company hence Company is in th process of diversifying to other business areas.

(b) Strength

The strength of the company is known from its reputation which the company has earned due to its quality business and cordial relation with its clients and presently the company’s financial position is sound..

(c) Comment on Current year’s performance

Receipts	: company maintained the average business turnover of last years during the year.
Operating Expenses	: The operating Expenses are well under control.
Operating Profits	: The Operating Profits are up to industry mark.
Indirect Expenses	: The Indirect Expenses are under control.
Depreciation	: Reasonable amount of Depreciation is provided.
Profit before tax	:The loss is reduced during the year
Taxation	: Taxation is Provided as per Income Tax Act.
Debtor/Sales	: Debtors are reasonable and realization period has decreased due to the policy of the Company.
Creditors/Purchase	: The Company has an established credit.

d) Opportunities and Threats

The impact of boom in capital market and real estate market due to government support has provided a boost to the economy and it is set to grow at 20% to 25% supported by a smart growth in manufacturing and services sectors. The Company is planning to take up the growth opportunity by diversifying into other suitable areas of business. Outlook for the year 2013 is positive. While the overall demand outlook for the year 2013 remains good, the Company expects the pressure on quality customers to continue due to competition.

(e) Segment wise performance

The business of the Company falls under a single segment i.e. Share broking, Investment and trading in shares and derivatives for the purpose of Accounting Standard AS-17.

(f) Outlook

The Company is making all efforts to accelerate growth of its business. It expects to improve its position in the market by focusing on technologically advanced and more profitable products/market segments and working aggressively in the areas of productivity, efficiency and cost reductions.

(g) Risk and concerns

Stiff competition from other manufactures of the products of the Company and price competition creates risk of losing the market share of the Company. However company is very optimistic to continue its dominance in market by way of aggressive marketing maintaining quality of the product.

(h) Internal control system

Internal audit and other controls have been found to be adequate. These are reviewed periodically by the Audit Committee and found the performance satisfactory.

CEO / CFO Certification

To

The Board of Director

Gujarat Narmada Flyash Co Ltd VADODARA, Vadodara.

We certify that ;

1. We have reviewed the financial statement and cash flow statement of Gujarat Narmada Flyash Co Ltd, for the year ended 31^st March 2013 and to the best of our knowledge and belief ;

i these statement do not contain any materially untrue statement or omit any material fact or contain statement that might be misleading ;

ii these statement together present a true and fair view of the company affairs and are in compliance with existing accounting standard, applicable law and regulation.

2. To the best of our knowledge and belief, these are, no transaction entered into by the company during the year, which are fraudulent, illegal or violating the company’s code of conduct.

3. We accept responsibility for establishing and maintaining internal controls over financial reporting and we have evaluated the effectiveness of internal control systems of the company over financial reporting and we have disclosed to the auditors and audit committee, deficiencies in the design or operation of internal control over financial reporting, if any, of which we are aware and the steps we have taken, propose to take, to rectify these deficiencies. In our opinion, these are adequate internal controls over financial reporting.

4. We have indicated to the auditors and the audit committee that there are

i significant improvement in internal controls over financial reporting during the year

ii changes in accounting policies made during the year as have been disclosed in the notes to the financial statement.

iii no instance of fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the company internal control system on financial reporting.

	For Gujarat Narmada Flyash Co.Ltd.
	Sd/-
Date : 01/08/2013	Mitesh Jani
Place: Vadodara	Managing Director/CEO

AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE

To the Members

Gujarat Narmada Flyash Company Limited

We have examined the compliance of condition of corporate governance by Gujarat Narmada Flyash Company Limited for the year ended on 31^st March 2013 as stipulated in clause 49 of the Listing Agreement of the said Company with Stock Exchange.

The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the corporate governance. It is neither an audit nor an expression of opinion on the financial statement of the Company.

In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Directors and the Management, we certify that the Company has complied with the conditions of corporate governance as stipulated in the above mentioned Listing Agreement.

As required by the Guidance Note issued by the institute of Chartered Accountants of India, we have to state that no investor grievance is pending for a period exceeding one month against the Company as per the records maintained by the Shareholders/Investors’ Grievance Committee.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

PLACE : Ahmedabad	For Shirish Dalal & Associates
DATE : 01/08/2013	CHARTERED ACCOUNTANTS
	Sd/-
	Shirish Dalal
	PROPRIETOR