To the Members,
The Board of Directors is pleased to place before you the 65th 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:
(Rs. in lakh)
Particulars |
For the year ended March 31, 2025 |
For the year ended March 31, 2024 |
Interest on Loans and Advances |
13.81 |
465.68 |
Interest on deposits |
1,512.03 |
1,294.01 |
Other income (including exceptional items) |
198.87 |
389.85 |
Total income |
1,724.71 |
2,149.54 |
Interest on Borrowings |
13,933.95 |
13,748.09 |
Employee's cost |
112.61 |
149.25 |
Other expenses |
212.15 |
173.04 |
Total Expenditure |
14,258.71 |
14,070.38 |
Loss for the year under reference |
12,534.00 |
11,920.84 |
Accumulated loss carried forward |
3,42,515.82 |
3,29,981.82 |
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:-
Sr. No. Category |
Total |
1 A' Grade officers |
1 |
2 B' Grade employees |
8 |
3 C' Grade employees |
3 |
Total |
12 |
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 25th 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 64rd
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 |