We have audited the financial statements of GUJARAT 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,
except for 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 true and fair view in conformity with accounting principles generally accepted in India of the
state of affairs of the corporation as at 31st 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

Management is responsible for the preparation of the other information. The other information
comprises the information included in the Board’s Report including Annexures to Board’s Report
but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.

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
appears to 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 that give 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 taken
on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether 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
procedures that 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 continue as 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 in a 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 in

internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with
relevant ethical 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,
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.

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 knowledge
and 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.

For and on behalf of

M/s Pankaj R. Shah & Associates

Chartered Accountants

(Registration No. 107361W)

CA Nilesh Shah
Partner

Membership No. 107414
UDIN: 25107414BMGIRS7869
Place: Ahmedabad
Date : 27-05-2025