The Board of Directors is pleased to place before you the 65^th Annual Report of the Corporation
containing audited Balance Sheet as at March 31, 2025, Statement of Profit and Loss, Cash Flow
Statement and other financial statements for the year ended March 31, 2025.

1. Financial results:

Corporation’s financial performance for the financial year ended March 31, 2025 is summarized
below:

(? in lakh)

2. Performance:

During the year under reference, interest earned by the Corporation reduced substantially and stood
at ?13.81 lakh as against ?465.68 lakh reported in the previous year. Interest on deposits increased
by 16.85 per cent to ^1,512.03 lakh compared to ?1,294.01 lakh reported a year ago. Other income,
including non-cash items, for the year under reference almost halved to ?198.87 lakh compared to
?389.85 lakh reported in the previous year. Total income for the year under reference stood at
?1,724.71 lakh, a decrease of 24.63 per cent over ?2,149.54 lakh reported in the previous year.

Interest on borrowings for the year under reference increased marginally and stood at ?13,933.95
lakh as against ?13,748.09 lakh reported a year ago. Employees cost for the year under reference
reduced by 32.53 per cent and stood at ?112.61 lakh compared to ?149.25 lakh reported in the
previous year. Total expenditure for the year under report registered a marginal increase of 1.34 per
cent and stood at ?14,258.71 lakh as against ?14,070.38 lakh reported a year back. Loss for the year
under reference stood at ?12,534.01 lakh, an increase of 5.14 per cent over ?11,920.84 lakh
registered in the previous year. The accumulated loss increased by 3.80 per cent at ?3,42,515.82
lakh compared to Rs.3,29,981.82 lakh reported in the previous year.

3. Borrowings:

Corporation has not resorted to borrowings during the year under reference. All external borrowings
have already been repaid and aggregate principal borrowings from Government of Gujarat yet to be
repaid remained statistic at Rs.66,168.43 lakh.

4. Recovery:

During the year under reference, Corporation recovered 212.29 lakh as against ?558.77 lakh
reported a year ago.

5. Human Resource:

During the year under report, the staff strength of the Corporation reduced to 12 from 16 reported in
the previous year. The break-up of staff strength is as under:-

Of the total staff strength of 12, four employees are on deputation with other Government
departments. The effective staff strength of the Corporation reduced to 8 spread over three Regional
Offices and Head Office.

6. Corporate Governance:

The detailed Corporate Governance Report containing all relevant information and the certificate
regarding compliance of corporate governance are forming part of the Annual Report. The
qualifications contained in para 2 of the Certificate of compliance with the conditions of Corporate
Governance Regulations are dealt with in “Other Disclosures” in para 10 of the Report on
Corporate Governance for FY 2024-25 forming part of the Annual Report.

Management Discussion and Analysis Report and declaration by Managing Director that the Board
of Directors and Senior Management Personnel have complied with the Code of Conduct also form
part of Annual Report.

7. Auditors:

Pursuant to Section 37 of the State Financial Corporations Act, 1951, the shareholders at its Annual
General Meeting held on 25^th July, 2024 had re-appointed M/s. Pankaj R Shah & Associates,
Chartered Accountants (FRN No. 107361W), for the third term as the statutory auditors of the
Corporation to hold office from the conclusion of 64^rd Annual General Meeting till the conclusion
of ensuing Annual General Meeting. As per RBI guidelines, in the normal course, an audit firm may
continue for a term of four years in one spell. Hence Corporation requested Reserve Bank of India
to confirm eligibility and suitability for re-appointment of the said firm as statutory auditors for the
fourth term for FY 2025-26. RBI, vide letter dated April 09, 2025, confirmed their eligibility and
suitability for the said re-appointment. Proposal to re-appoint the said auditors for the fourth and
last term as recommended by the Board is being placed before the shareholders at the ensuing
Annual General Meeting for consideration.

M/s. Pankaj R Shah & Associates, Chartered Accountants, statutory auditors have submitted
Independent Auditor’s Report on the financial statements of the Corporation for the year ended
March 31, 2025 which contains two qualifications, both reiteration of previous years. Said
qualifications along with comments thereon of the management is given in Addendum to this
Report and also form part of the Annual Report.

8. Board of Directors:

The following are the changes in the Directorate took place during the financial year ended March
31, 2025:

a. Small Industries Development Bank of India, vide letters dated May 22, 2024, nominated
Shri Naresh Babuta, General Manager, SIDBI Ahmedabad Regional Office and Shri Dinesh

Kumar, Deputy General Manager, SIDBI Ahmedabad Branch Office as Directors on the
Board of Directors of the Corporation in places of Shri Sanjay Gupta and Shri Akash Pawar
respectively. Both nominees assumed office on May 24, 2024.

b. Small Industries Development Bank of India, vide letter dated November 12, 2024 nominated
Ms. Mamta Verma, IAS, Principal Secretary, Industries & Mines Department, Government of
Gujarat as Chairperson of the Corporation to succeed Shri S.J. Haider, IAS, the then
Additional Chief Secretary, Industries & Mines Department. Ms. Mamta Verma, IAS
assumed office with effect from December 05, 2024.

c. Shri Swaroop P, IAS, Industries Commissioner, took over as ex-officio Managing Director of
the Corporation with effect from February 04, 2025 in place of Shri Sandip J. Sagale, IAS
pursuant to Order dated April 29, 2017 read with Notification dated February 01, 2025 of the
General Administration Department.

Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, brief
resume of Directors joined on the Board of Directors during the year under report was
furnished in the Corporate Governance Report for FY 2023-24. Brief resume of Chairperson
and Managing Director is included in the Corporate Governance Report for FY 2024-25,
forming part of the Annual Report.

9. Directors’ Responsibility Statement

The Directors, based on the representations received from the Operations Departments and to the
best of their knowledge and ability, hereby confirm that:

1. in the preparation of the annual accounts, the applicable accounting standards had been
followed along with proper explanation relating to material departures;

2. they have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view of
the state of affairs of the Corporation at the end of the financial year ended March 31, 2025
and of the profit and loss of the Corporation for that period;

3. they have taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the regulatory provisions for safeguarding the assets of the
Corporation and for preventing and detecting fraud and other irregularities;

4. the annual accounts for the year ended March 31, 2025 has been prepared on a going
concern basis,

5. they have laid down internal financial controls to be followed by the Corporation and that
such internal financial controls are adequate and were operating effectively during the year
ended March 31, 2025; and

6. proper systems have been devised to ensure compliance with the provisions of all applicable
laws and that such systems were adequate and operating effectively during the year ended
March 31, 2025.

10. Acknowledgement:

The Board of Directors is sincerely grateful to the Government of Gujarat for its continuous support
and guidance. The Board acknowledges with gratitude the co-operation and support received from
Industries & Mines Department, Finance Department and other agencies of Government of Gujarat.
The Board thanks RBI, SIDBI and its Ahmedabad Office for their support and guidance. The Board
also acknowledges with thanks the commendable services rendered and guidance provided by Shri
S.J. Haider, IAS as Chairman, Shri Sandip J Sagale, IAS as Managing Director and Shri Sanjay
Gupta as well as Shri Akash Pawar, both Directors during their association with the Corporation.
The Board takes this opportunity to put on record its deep sense of gratitude to its stakeholders and
customers for their continued support and confidence. Last but not least, the Board appreciate the
sincere and dedicated services rendered by the employees of the Corporation.

For and on behalf of the Board of Directors,

Place : Gandhinagar (Swaroop P., IAS)

Date : 27-05-2025 Managing Director