Gujarat State Financial Corporation — Board Meeting, 27-05-2025: Board Meeting

Gujarat State Financial Corporation

(Established under State Financial Corporations Act, 1951)

SECRETARIAL CELL

1st Floor, Udyog Shavan, Sector-ii, GH-4, Gandhinagar -382 010

Phone No.: 23256766 Fax: 23252204

Website: http://9sfc.gujarat.gov.in Email: sec-cell-gsfc@guJarat.gov.in

GSFC/SEC.CELLlC-21

The Listing Compliance Department

BSE Ltd, 25th Floor,

Phiroz Jeejeebhoy Towers

Dalal Street, Fort, Mumbai 400 001

May 27, 2025

Sub: 1. Outcome of the Board meeting held on May 22, 2023.

2. Audited financial results for the quarter and year ended

March 31, 2025

Ref: Stock Code 532160

Dear Sirs,

Further to our notice dated Mayl6, 2025 and pursuant to Regulation 33 read

with Regulation 30 of SEBI (LODR) Regulations, 2015, we wish to inform you

that the Board of Directors of the Corporation at its meeting held today, i.e.,

Tuesday, the May 27,2025, inter alia, transacted following items of business:

I. Approved the audited fmancial results of the Corporation for the fourth

quarter and year ended March 31, 2025. The audited fmancial results for

the quarter and year ended March 31, 2025 together with Statement of

Assets & Liabilities as on March 31, 2025, Cash Flow Statement for the

year ended 31st March, 2025, Extract of audited fmancial results for the

quarter and year ended 31 st March, 2025 being published in dailies as

well as copy of Limited Review Report on quarterly fmancial results

and year to date results, both of even date, with qualified opinion

issued by Mis. Pankaj R. Shah & Associates, Chartered Accountants,

Ahmedabad and Statement on Impact of Audit Qualifications for the

fmancial year ended March 31, 2025 are enclosed.

2. In view of loss reported for the fmancial year 2024-25, Corporation has

not declared dividend for the said fmancial year.

3. Board of Directors authorized Managing Director to decide the date, time

and agenda of ensuing 65th Annual General Meeting including book

BSE corresp. 2025·26

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Gujarat State Financial Corporation

(Established under State Financial Corporations Act, 1951)

SECRETARIAL CELL

1st Floor, Udyog Bhavan, Sector-ii, GH-4, Gandhinagar -382 010

Phone No.: 23256766 Fax: 23252204

Website: htto:1I9sfc.gujarat.gov.in Email: sec-cell-gsfc@gujarat.gov.in

closure dates, cut-off date and remote e-voting dates in consultation with

Chairperson_

4. Board of Directors approved appointment of Mis. Spanj & Associates,

Company Secretaries, TF/l, Anison Complex, SBI Lane, Near

Stadium Circle, CG Road, Ahmedabad as Scrutinizer for remote e-voting

and poll in physical meeting in connection with 65th Annual General

Meeting.

5_ Board of Directors have decided to recommend to members in the

ensuing 65th Annual General Meeting to re-appoint Mis. Pankaj R. Shah

& Associates, Chartered Accountants, (Firm Reg_ No. 107361 W),

Ahmedabad as Statutory Auditors of the Corporation for FY 2025-26 for

the fourth year so as to hold office from the conclusion of ensuing 65th

Annual General Meeting till the conclusion of next Annual General

Meeting_

Board meeting commenced at OLOO p.m. and concluded at 3_19 p.m. on May

27,2025.

The fmancial results and all other aforesaid documents are simultaneously

uploaded on the website ofthe Corporation http://gsfc_gujarat.gov.in

We request you to kindly take the above on record_

Thanking you,

Yours faithfully,

for Gu'arat State F'. ncial Corporation,

Encl: As above

BSE corresp. 2025·26

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GUJARAT STATE FINANCIAL CORPORATION

GANDHI NAGAR

AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2025

(R I Lakh) • n

Q\I.rter ended Yeuended

PARTICUlAAS 31.12.2024 31.03.2024 31.03.2025 (Audited)

(Unaudited) (Audited) 31.03.2025 (Audited) 31.03.2024 (Audited)

Interest earned 24.68 -97.49 62.45 13.81 465.68

Other Income 403.86 378.05 348.51 1520.53 1307.04

Total Income 11+2) 428.54 280.56 410.96 1534.34 1772.72

Interest Expended 3453.11 3518.12 3407.28 13933.95 13748.09

Operating Expenditure (1)+(11) 85.57 83.06 80.72 324.77 322.29

(i) Employees cost 25.50 23.97 35.14 112.61 149.25

(ii) Other operating expenses 60.07 59.09 45.58 212.16 173.04

Total Expenditure (4 + 5) 3538.68 3601.18 3488.00 14258.72 14070.38

Operating Profit before provisions & contingencies (3-6) 13110.14) 13320.62) 13077.04) 112724.38) 112297.66)

Provisions (other than tax) & Contlngenctes 0.00 0.00 0.00 0.00 0.00

Exceptional Items (1)+(11) 8.55 154.63 119.65 190.37 376.82

(I) Diminution in the value of investment written back 10.50) 0.00 106.02 10.50) 106.02

(il) Provision for NPA written back/{provided) 9.05 154.63 13.63 190.87 270.80

Proflt{+)/loss{-) from Ordinary Activities before Tax (7-8-9) 13101.59) 13165.99) 12957.39) 112534.01) 111920.84)

Tax expenses 0.00 0.00 0.00 0.00 0.00

Net Proflt(+)/loss(-) from Ordinary Activities after Tax (l0-13101.59) 13165.99) 12957.39) 112534.01) 111920.84)

11)

Extraordinary items (net of tax expenses) 0.00 0.00 0.00 0.00 0.00

Net Proflt(+IILoss(-) for the period (12-13) 13101.59) 13165.99) 12957.39) 112534.01) 111920.84)

Paid-up Equity Share Capital (Face value Rs. 101-each) 8911.40 8911.40 8911.40 8911.40 8911.40

Reserves excluding Revaluation Reserves as at 31st March, -----. ---1315431.29) 1302864.94)

Analytical ratios

Percentage of Shares held by Govt.of Gu]arat 55.09 55.09 55.09 55.09 55.09

Basic and diluted Earnings Per Share (Not annualized) Rs. 13.48) 13.55) 13.32) 114.07) 113.38)

NPA Ratio

Gross NPA 39802.25 39811.30 39993.11 39802.25 39993.11

Net NPA 39802.25 39811.30 39993.11 39802.25 39993.11

% of Gross NPA to Gross advances 100% 100% 100% 100% 100%

% of Net NPA to Net advances 100% 100% 100% 100% 100%

Return on assets 0.00 0.00 0.00 0.00 0.00

STATEMENT OF ASSETS AND UABIUTIES AS ON MARCH 31 2025

.

Aut 31.03.25 Aut 31.03.24

PARTICULARS Audited Audited

CAPITAL AND UABIUTIES

Capital 9371.88 9371.88

Reserve and Surplus -315431.29 -302864.94

Deposits 0.00 0.00

Borrowings 66168.42 66168.42

Other liabilities & Provisions 261893.90 247948.99

Total 22002.91 20624.35

ASSETS

Cash on hand 0.76 0.79

Balance with Banks 1 GSFS 174.55 123.08

Investment 20641.78 19393.03

loan & Advances 0.00 0.00

Fixed Assets 196.88 217.37

Other Assets 988.94 890.08

22002.91 20624.35)

P.T.O

-

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Particulars

CASH FLOW FROM OPERATING ACTIVITIES

Net Loss before tax as per Profit & Loss Afe

Adjustments :

Depreciation

Provision for NPA written back

YEAR ENDED

Dimlnution/(Reverse Diminution) In Value of Investments

Profit on sale of Investments

Dividend Income

Interest Income

Interest on Finance Cost

Operating Loss before working capital

Adjusted for:

i) Other Assets

ii) Other Liabilites & Provisions

ET CASH USED FROM OPERATING ACTIVITES (A)

CASH FLOW FROM INVESTING ACTIVITIES

Purcahse of Fixed Assets (After changes in Capital W-I-P)

Sale of Fixed Assets

Decrease In Investments

Dividend Income

Interest Income

CAS USED FROM INVESTING ACTIVITES (B)

CASH FLOW FROM FINANCING ACTIVITES

NET CASH FLOW FROM FINANCING ACTIVITIES (C)

Net Increase in Cash & Cash Equivalents (A+B+C)

Opening Balance of Cash & Cash Equivalents

Closing Balance of Cash & Cash Equivalents

Components Depectlng Closing Cash and Cash Equivalents

Cash on hand and as Imprest

BALANCE WITH BANKS

UQUID DEPOSIT WITH GSFS

Total

Ended 31st

March. 2025

-1 •• " O."".Ull.1

Ended 31st

March. 2024

-1.'"."U."",7571

-5.11.

-12.94.01.

-1

-12.47.94.141 -13.6<1.45 •. 5911

-65.301

5.11.435

The above Cash Flow Is prepared In accordance with Accounting Standard -3 (Indirect method).

...

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Notes:

The above audited financial results were reviewed by the Audit Committee and

approved by the Board of Directors at their respective meetings held on May 27,

2025.

2 Previous period figures have been regrouped or rearranged wherever considered

necessary. The figures for the three months ended 3 151 March, 2025 and 3 151

March, 2024 are the balancing figures between the audited figures in respect of

the full financial years and the published year-to-date figures up to the third

quarter of the relevant financial year.

3 Corporation is primarily engaged in the business of term lending. All

activities of the Corporation revolve around main business. Hence there are no

reportable segments as per AS-17 "Segment Reporting".

4 NPA write-back of lakh has been effected during the quarter ended March

31,2025 as against lakh wrote back in the corresponding quarter a year

ago. For the year ended March 31, 2025, net write back of NPA provision

amounted to n 90.87 lakh compared to 270.80 lakh wrote back in the previous

year. Likewise; due to fluctuation in market value of quoted investments, during

the year ended 3151 March, 2025, an amount of lakh was provided towards

diminution in the value of investment as against 06.02 lakh wrote back in the

previous year. The write back of NPA provision as well as provision made

diminution in the value of investment are disclosed as exceptional items.

5. During the year under reference, Corporation withdrew lakh (previous year

Rs.219.79 lakh) from "Reserve for Bad and Doubtful Debts" and adjusted against

bad debts written off resulting into reduction in Reserves & Surplus as well as

expenditure to that extent.

6. Statutory Auditors in the Auditor's Report on quarterly financial results and year-

to-date results for the quarter and year ended March 31, 2025 made qualified

opinion which along with Management's views are given in as under:-

Sr.

No.

Audit qualification

The financial statements

of the Corporation are

prepared on a going

concern basis, notwith-

standing the fact that its

net worth is completely

eroded and defaulted in

repayment obligations

due to liquidity problems.

This is not in accordance

with Accounting

Standard (AS)-l

"Disclosure of

Accounting Polices".

The effect of the same on

the financial statements is

Management's view

Gujarat State Financial Corporation is established under

State Financial Corporations Act, 1951, a special Act of

Parliament pursuant to Entry No. 43 of the Union List.

Corporation is, thus, a body corporate and statutory

Corporation. The main objective of establishment of the

Corporation is aimed at achieving balanced regional growth

by extending financial assistance to first generation

entrepreneurs to establish micro and small scale units in the

State and to generate employment. Corporation has so far

suffered immense loss but it is still continuing its recovery

function. Corporation, being a statutory body, thus, prepares

accounts on "going concern" assumptions and it is

appropriate in the aforesaid circumstances.

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2

not ascertainable.

Dues payable to

Government of Gujarat is

subject to confirmation

and adjustment, if any,

required upon such

confirmation. Pending

such confirmation, the

effect thereof on interest

and penal interest is not

ascertainable.

Place: Gandhinagar

Date: 27-05-2025

Government loans are granted as a result of provision in the

Budgets of Government of Gujarat from time to time and

subsequent issuance of Government Resolutions to

overcome the financial strain of the Corporation. Since

Corporation has discontinued its main activities and

dependent on recovery of dues, Corporation is not in a

position to service the liabilities towards Government of

Gujarat. Under the circumstances, Government has been

moved to make the loan advanced to the Corporation interest

free from 1-7-2012 vide letter dated 17th October, 2012. In

response to recent letter dated January 18, 2025 received

from Government in Industries & Mines Department in the

matter, latest position of the Corporation has been submitted

vide letter dated February 04, 2025 and decision is awaited.

However, pending decision, interest and interest on delayed

payment on Government loan is charged to Statement of

Profit & Loss. The outstanding details are submitted to

administrative department on quarterly basis. The loan

accounts are subjected to verification by other authorities

also from time to time and no observation was made. In

view of this, separate confirmation is not obtained.

Managing Director

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Gujarat State Financial Corporation

(Established under State Financial Corporations Act. 1951)

Block No.10, Udyog Bhavan, Sector-11, GH-4, Gandhinagar -382 010

Phone No.: (079) 23256766 Fax (079) 23252204

Website: http://gsfc.gujarat.gov.in E-mail: sec-cell-gsfc@gujarat.gov.in

Statement on Impact of Audit Qualifications for the financial year ended

March 31, 2025

(f in lakh except Earnin2s Per Share)

Audited figures Adjusted

Sr, Particulars (as reported figures

No. before (audited

I adjusting for figures after qualifications) adjusting for

qualifications)

I Tumoverrrotalincome 1,724.71 1,724.71

2 Total expenditure 14,258.72 14,258.72

3 Net profit/CLoss) (12,534.01) (12,534.0 I)

4 Earnings Per Share (14.07) (14.07)

5 Total Assets 22,002.91 22,002.91

6 Total Liabilities 3,64,518.74 3,64,518.74

7 Net Worth (3,06,059.41) (3,06,059.41)

8 Any other financial item(s) (as felt NIL NIL

appropriate by the management)

II Audit qualification (each qualification separately)

a. Details of audit qualification As per Annexure X

b. Type of audit qualification Qualified opinion

c. Frequency of qualifications Repetitive since last eight years

d. For audit qualifications(s) where the Not quantified, Management's

impact is quantified by the auditor, view as per Annexure X

Management's views

e. For audit qualification(s) where the Quali fications being general in

impact is not quantified by the auditor; nature, the impact on financial

(i) Management's estimation on the statements cannot be quantified.

impact of audit qualification

(ii) If management is unable to estimate Qualifications are general and

the impact, reasons for the same technical in nature with regard to

the procedures followed by the

Corporation and eroding of capital.

Impact on financial statement

cannot be ascertained.

Impact Statement FY 24·25

--

(j)

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(iii) Auditors' comments on

(i) or (ii) above

III Signatories:

Swaroop P., lAS

Managing Director

M.R. Malpani

Executive Officer (Accounts)

Leena D Katdare

Chairperson, Audit Committee

Nilesh Shah

Partner

Pankaj R Shah & Associates

Statutory Auditors

Place Gandhinagar

Date 27/05/2025

Management's views! response are

given in Annexure X

No additional comments other than

what is stated in our Report of even

date.

Impact Statement FY 24-25

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Gujarat State Financial Corporation

(Established under State Financial Corporations Act. 1951)

Block No.10, Udyog Bhavan, Sector-11, GH-4, Gandhinagar -382 010

Phone No.: (079) 23256766 Fax (079) 23252204

Website: http://gsfc.guJarat.gov.ln E-mail: sec-cell-gsfc@guJarat.gov.in

Annexure X

Qualifications contained in the Independent Auditor's Report on financial statements

for the financial year ended 31" March, 2025 on annual financial statements and

management response thereto on qualifications:

Sr.

No.

2

Audit qualification

The financial statements of

the Corporation are prepared

on a going concern basis,

notwithstanding the fact that

its net worth is completely

eroded and defaulted in

repayment obligations due to

liquidity problems. This is

not In accordance with

Accounting Standard (AS)-I

"Disclosure of Accounting

Polices". The effect of the

same on the financial

statements is not

ascertainable.

Dues payable to Government

of Gujarat is subject to

confinmation and adjustment,

if any, required upon such

confinmation. Pending such

confinmation, the effect

thereof on interest and penal

interest is not ascertainable.

Management's view

Gujarat State Financial Corporation is established under State

Financial Corporations Act, 1951 by Parliament as a special Act

pursuant to Entry No. 43 of the Union List. Corporation is, thus, a

body corporate and statutory Corporation. The main objective of

establishment of the Corporation is aimed at achieving balanced

regional groW1h by extensifng financial assistance to first

generation entrepreneurs to establish micro and small scale units

in the State and to generate employment. Corporation has so far

suffered immense loss but it is continuing its recovery function.

Corporation, being a statutory body, thus, prepares accounts on

"going concern" assumptions and it is appropriate in the aforesaid

circumstances.

Government loans are granted as a result of provision in the

Budgets of Government of Gujarat from time to time and

subsequent issuance of Government Resolutions to overcome the

financial strain of the Corporation. Since Corporation has

discontinued its main activities and dependent on recovery of

dues, Corporation is not in a position to service the liabilities

towards Government of Gujarat. Under the circumstances,

Government has been moved to make the loan advanced to the

Corporation interest free from 1-7-2012 vide letter dated 17th

October, 2012. In response to recent letter dated January 18, 2025

received from Government in Industries & Mines Department in

the matter, latest position of the Corporation has been submitted

vide letter dated February 04, 2025 and decision is awaited.

However, pending decision, interest and interest on delayed

payment on Government loan is charged to Statement of Profit &

Loss. The outstanding details are submitted to administrative

department on quarterly basis. The loan accounts are subjected to

verification by other authorities also from time to time and no

observation was made. In view of this, separate confinmation is

not obtained.. '-'

Annexure X

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Gujarat State Financial Corporation

(Established under State Financial Corporations Act. 1951)

Block No.10, Udyog Bhavan, Sector-ii, GH-4, Gandhinagar -382 010

Phone No.: (079) 23256766 Fax (079) 23252204

Website: http:U9sfc.gujarat.gov.in E-mail: sec-cell-gsfc@gujarat.gov.in

EXTRACT OF AUDITED FINANCIAL RESULTS FOR THE

QUARTER AND YEAR ENDED 31ST MARCH, 2025

Particulars

Total income from Operations (net)

Net profit/loss from ordinary activities

after tax (before extra-ordinary items)

Net profit/loss from ordinary activities

after tax (after extraordinary items)

Paid-up Equity Share Capital (Face

value of Rs. I 0/-)

Reserves (excluding Revaluation

Reserve) as on March 31

Earnings Per Share (EPS) (before and

after extraordinary items)

Basic & diluted

* Not annualIzed

Note:-

(Rs. in lakh except per share data)

Quarter Yearended Quarter

ended 3\-03-2025 ended

3\-03-2025 3\-03-2024

(Audited) (Audited) (Audited)

437.59 1,725.21 424.59

(3,101.59) (12,534.0 I) (2,957.39)

(3, I 0 1.59) (12,534.01) (2,957.39)

8,911.40 8,911.40 8,911.40

(3,15,431.29) (3,15,431.29) (3,02,864.94)

*(3.48) I (14.07) *(3.32)

I. The audited financial results for the quarter and year ended March 31, 2025 along

with Limited Review Report/Lndependent Auditor's Report thereon issued by the

statutory auditors have been reviewed by the Audit Committee and approved by the

Board of Directors at their respective meetings held on May 27, 2025.

2. The above is an extract of the detailed format of Quarterly/Annual Financial

Results filed with the BSE Limited under Regulation 33 of SEBI (Listing and

Other Disclosure Requirements) Regulations, 2015. The full format of the

Quarterly/Annual Financial Results is available on BSE Ltd website:

www.bseindia.comandalsoonCorporation·swebsite:http:Ugsfc.gujarat.gov.in .

The same can also be assessed by scanning the QR Code provided below.

QR Code

Place: Gandhinagar

Date: 27-05-2025

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For and on beh{if B:ard of Directors,

Managing Director

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Pankaj R Shah & Associates

Chartered Accountants

CA. DR. Pankaj Shah

B.Com., F.C.A., Ph. D. (Commerce)

CA. Chintan Shah

8.Com., L.L.B., F.C.A.

CA. Nilesh Shah

B.Com., L.L.B., F.C.A.

CA. Manali Shah

B.Com., F.CA

CA. Sandip Gupta

B.Com., F.C.A.

7th Floor, Regency Plaza, Opp. Rahul Tower, Nr. Madhur Hall, Anandnagar Cross Road,

Satellite, Ahmedabad-380015. India. Phone: +91 79 -46031545,46031546,40321025. URL: hltp:/lwww.prsca.in

Independent Auditors' Report on Quarterly and Year to Date audited Standalone

Financial Results of Mis Gujarat State Financial Corporation Pursuant to the Regulation

33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

as amended

To

The Board of Directors,

Gujarat State Financial Corporation

Opinion

1. We have audited the quarterly financial results of Gujarat State Financial Corporation

("the Corporation") for the quarter ended on March 31, 2025 and the year to date

financial results for the period from April 01, 2024 to March 31,2025, attached herewith,

being submitted by the Corporation pursuant to the requirement of Regulation 33 of the

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These

quarterly financial results as well as the year to date financial results have been

prepared on the basis of interim financial statements, which are the responsibility of the

company's management. Our responsibility is to express an opinion on these financial

results based on our audit of such interim financial statements, which have been

prepared in accordance with the recognition and measurement principles laid down in

Accounting Standard (AS) 25, Interim Financial Reporting, issued by the Institute of

Chartered Accountants of India read with other accounting principles generally

accepted in India.

2. We conducted 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 results are free of material

misstatement. An audit includes examining, on test basis, evidence supporting the

amounts disclosed as financial results. An audit also includes assessing the accounting

principles used and the significant estimates made by the Management. We believe

that our audit provides a reasonable basis for our opinion.

Scope of Review:

We conducted our review of the Statement in accordance with the Standard on Review

Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the

Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India.

This Standard requires that we plan and perform the review to obtain moderate assurance

as to whether the Statement is free of material misstatement.

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Pankaj R. Shah & Associates Continuation Sheet

Chartered Accountants

Basis for qualified conclusion:

1. The financial results of the corporation are prepared on a going concern basis,

notwithstanding the fact that its net worth is completely eroded and defaulted in repayment

obligations due to liquidity problems. This is not in accordance with Accounting Standard

(AS) - 1 "Disclosure of Accounting Policies". The effect of the same on the financial results

is not ascertainable.

2. Dues payable to Government of Gujarat is subject to confirmation and adjustment, if any.

Pending such confirmation, the effect thereof on interest and penal interest is not

ascertainable.

Qualified Conclusion:

In our opinion and to the best of our information and according to the explanations given to us

except for the possible effects of the matters described in basis for opinion paragraph, these

quarterly financial and year to date results:

1. Are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing

Obligations and Disclosure Requirements) Regulations, 2015 in this regard; and

2. Give true and fair view of the net loss and other financial information for the quarter ended

March 31,2025 as well as year to date results.

We conducted our audit of the Statement in accordance with the Standards on Auditing ("SA"s)

specified under Section143(10) of the Act. Our responsibilities under those Standards are further

described in the Auditor's Responsibilities for the Audit of the Standalone Financial Results section

of our report. We are independent of the Company in accordance with the Code of Ethics issued

by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements

that are relevant to our audit of the Standalone Financial Results under the provisions of the Act

and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance

with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence

obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

CA Nilesh Shah

Partner

Membership NO.107414

UDIN: 251071f.1trSt-lGyIRR..I4-38

Date: 27 -05-2025

Place: Ahmedabad

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Pankaj R Shah & Associates

Chartered Accountants

CA. DR. Pankaj Shah

B.Com., F.CA, Ph. O. (Commerce)

CA. Chintan Shah

B.Com., LLB., F.CA

CA. Nilesh Shah

B.Com., LLB., F.CA

CA Manali Shah

B.Com,F.CA

CA. Sandlp Gupta

B.Com., F.C.A.

7th Floor, Regency Plaza, Opp. Rahul Tower, Nr. Madhur Hall. Anandnagar Cross Road

Satellite. Ahmedabad-380015.lndia. Phone: +9179 -46031545,46031546,40321025. URL: http://www.prsca.in

Independent Auditor's Report

To,

The Members of

GUJARAT STATE FINANCIAL CORPORATION

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the financial statements of GUJARA T STATE FINANCIAL

CORPORATION ('the Corporation'), which comprise the balance sheet as at 31st

March,2025 and the statement of Profit and Loss and statement of cash flows for the year

then ended, and notes to the financial statements, including a summary of significant

accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanation given to us,

exceptfor the possible effects of the matter described in Basis for Qualified Opinion paragraph,

the aforesaid financial statement give the information required by the Act in the manner so

required and give a trueand fair view in conformity with accounting principles generally accepted

in India of the state of affairs of the corporation as at 31 st March, 2025, and its loss and its cash

flow for the year ended on that date.

Basis for Qualified Opinion

a. The financial statements of the corporation are prepared on a going concern basis,

notwithstanding the fact that its net worth is completely eroded and defaulted in

repayment obligations due to liquidity problems. This is not in accordance with

Accounting Standard (AS) - 1 "Disclosure of Accounting Policies". The effect of the

same on the financial statements is not ascertainable.

b. Dues payable to Government of Gujarat is subject to confirmation and adjustment, if

any, required upon such confirmation. Pending such confirmation, the effect thereof

on interest and penal interest is not ascertainable.

Information other than the financial statements and auditors' report thereon

other

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Pankaj R. Shah & Associates

Chartered Accountants

, express any form of assurance conclusion thereon.

-"

Cont;nuat;on Sheet

®J

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent

with the financial statements or our knowledge obtained during the course of our audit or

otherwise appearsto be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement

of this other information; we are required to report that fact. We have nothing to report in this

regard.

Responsibilities of Management and Those Charged with Governance for the

Standalone Financial Statements

Management is responsible for the matters stated the preparation of these financial

statements that give a true and fair view of the financial position, financial performance and

cash flows of the Corporation in accordance with the accounting principles generally

accepted in India, including the Accounting Standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance

with the provisions of the Act for safeguarding of the assets of the Corporation and for

preventing and detecting frauds and other irregularities; selection and application of

appropriate accounting policies; making judgments and estimates that are reasonable and

prudent; and design, implementation and maintenance of adequate internal financial controls,

that were operating effectively for ensuring the accuracy and completeness of the accounting

records, relevant to the preparation and presentation of the financial statements thatgive a

true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the

Corporation's ability to continue as a going concern, disclosing, as applicable, matters related

to going concern and using the going concern basis of accounting unless management either

intends to liquidate the Corporation or to cease operations, or has no realistic alternative but

to do so.

Those management is also responsible for overseeing the Corporation's financial reporting

process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements

as a whole are free from material misstatement, whether due to fraud or error, and to issue

an auditor's report that includes our opinion. Reasonable assurance is a high level of

assurance, but is not a guarantee that an audit conducted in accordance with SAs will

always detect a material misstatement when it exists. Misstatements can arise from fraud

or error and are considered material if, individually or in the aggregate, they could reasonably

be expected to influence the economic decisions of users takenon the basis of these financial

statements.

As part of an audit in accordance with SAs, we exercise professional judgment and

professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements,

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Chartered Accountants

'due to fraud or error, design and perform audit procedures responsive to those risks, and

obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The

risk of not detecting a material misstatement resulting from fraud is higher than for one

resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit

proceduresthat are appropriate in the circumstances. We are also responsible for expressing

our opinion on whether the corporation has adequate internal financial controls system in

place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of

accounting and,based on the audit evidence obtained, whether a material uncertainty exists

related to events or conditions that may cast significant doubt on the Corporation's ability to

continue as a going concern. If we conclude that a material uncertainty exists, we are required

to draw attention in our auditor's report to the related disclosures in the financial statements

or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on

the audit evidence obtained up to the date of our auditor's report. However, future events or

conditions may cause the Corporation to cease to continueas a going concern.

• Evaluate the overall presentation, structure and content of the financial statements,

including the disclosures, and whether the financial statements represent the underlying

transactions and events ina manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit and significant audit findings, including any significant

deficiencies ininternal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with

relevantethical requirements regarding independence, and to communicate with them all

relationships and other matters that may reasonably be thought to bear on our

independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those

matters that were of most significance in the audit of the financial statements of the current

period and are therefore the key audit matters. We describe these matters in our auditor's

report unless law or regulation precludes public disclosure about the matter or when, in

extremely rare circumstances, wedetermine that a matter should not be communicated in

our report because the adverse consequencesof doing so would reasonably be expected to

outweigh the public interest benefits of such communication.

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Pankaj R. Shah & Associates Continuation Sheet

Chart.ored Accountants

Reports on Other Legal & Regulatory Requirements

a. We have sought and, except for the matters described in the Basis for Qualified

Opinion paragraph, obtained all the information and explanations which to the best

of our knowledgeand belief were necessary for the purpose of our audit;

b. Except for the possible effects of the matter described in the Basis for Qualified

Opinion paragraph above, in our opinion proper books of accounts as required by

law have been kept by the Corporation so far as appears from our examination of

those books.

c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt

with by this Report are in agreement with the books of account;

d. Except the possible effect of the matter described in the Basis for Qualified opinion

paragraph, in our opinion, the aforesaid financial statements comply with the

Accounting standards issued by ICAI.

e. Based on our examination carried out in accordance with the Implementation

Guidance on Reporting on Audit Trail under Rule 11 (g) of the Companies (Audit

and Auditors) Rules,2014 (Revised 2024 Edition) issued by the Institute of

Chartered Accountants of India, which included test checks, we report that the

company has used an accounting software for maintaining its books of account

which has a feature of recording audit trail (edit log) facility and the same has

operated throughout the year for all relevant transactions recorded in the software.

Further, during our audit we did not come across any instance of audit trail feature

being tampered with. Additionally, the audit trail has been preserved by the

company as per the statutory requirements for record retention. Our examination

of the audit trail was in the context of an audit of financial statements carried out in

accordance with the Standard of Auditing and only to the extent required by Rule

11 (g) of the Companies (Audit and Auditors) Rules,2014. We have not carried out

any audit or examination of the audit trail beyond the matters required by the

aforesaid Rule 11 (g) nor have we carried out any standalone audit or examination

of the audit trail.

CA Nilesh Shah

Partner

Membership No. 107414

UDIN: 2SI0741lJ-BH&IRS7869

Place: Ahmedabad

Date :27-05-2025

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