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Gujarat State Financial Corporation.

BSE: 532160 Sector: Financials
NSE: GUJSTATFIN ISIN Code: INE944A01011
BSE 00:00 | 03 Dec 7.20 -0.29
(-3.87%)
OPEN

7.12

HIGH

7.58

LOW

7.12

NSE 05:30 | 01 Jan Gujarat State Financial Corporation
OPEN 7.12
PREVIOUS CLOSE 7.49
VOLUME 12195
52-Week high 10.42
52-Week low 1.44
P/E
Mkt Cap.(Rs cr) 64
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.12
CLOSE 7.49
VOLUME 12195
52-Week high 10.42
52-Week low 1.44
P/E
Mkt Cap.(Rs cr) 64
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat State Financial Corporation. (GUJSTATFIN) - Auditors Report

Company auditors report

To

The Members of

GUJARAT STATE FINANCIAL CORPORATION

Report on the Financial Statements

We have audited the accompanying financial statements of GUJARAT STATE FINANCIALCORPORATION (‘the Corporation') which comprise the Balance Sheet as atMarch 31 2020 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCorporation in accordance with the Accounting Standards issued by the Institute ofChartered Accountants of India (ICAI) and in accordance with the State FinancialCorporations Act 1951 (the Act). This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Corporation and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement. An audit involvesperforming procedures to obtain audit evidence about the amounts and the disclosures inthe financial statements. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Corporation's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Corporation has in place an adequate internal financial controlssystem over financial reporting and the operating effectiveness of such controls. An auditalso includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Corporation's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.

Basis for Qualified Opinion

a. The financial statements of the corporation are prepared on a going concern basisnotwithstanding the fact that its net worth is completely eroded and defaulted inrepayment obligations due to liquidity problems. This is not in accordance with AccountingStandard (AS) 1 "Disclosure of Accounting Policies". The effect of the same onthe financial statements is not ascertainable.

b. Dues payable to Government of Gujarat is subject to confirmation and adjustment ifany required upon such confirmation. Pending such confirmation the effect thereof oninterest and penal interest is not ascertainable.

c. Interest income on loans and advances on account of recovery from the parties aremade on actual receipt basis since beginning of financial year 2018-19 as a result ofchange in accounting policy adopted by the Corporation. However in respect of receiptsprior to 1-4-2018 the then prevailing policy is kept intact. Therefore the actual effecton write back of NPA bad debt provision and any other items of financial results couldnot be ascertained.

d. The balances in parties' accounts in subsidiary ledgers with general ledgers ofloans and advances are not reconciled. The effect thereof on loans and advances is notascertainable.

e. Borrowings Other Liabilities and Provisions Other Assets and Loans and Advances aresubject to confirmation and adjustments if any and the effect of the same on thefinancial statements is not ascertainable.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationgiven to us except for the possible effects of the matter described in Basis forQualified Opinion paragraph the aforesaid financial statement give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith accounting principles generally accepted in India of the state of affairs of thecorporation as at 31st March 2019 and its loss and its cash flow for the year ended onthat date.

Reports on Other Legal & Regulatory Requirements

a. We have sought and except for the matters described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best ofour 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 QualifiedOpinion paragraph above in our opinion proper books of accounts as required by law havebeen 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 withby this Report are in agreement with the books of account;

d. Except the possible effect of the matter described in the Basis for QualifiedOpinion paragraph in our opinion the aforesaid financial statements comply with theAccounting standards issued by ICAI.

For Priyam R Shah & Assocites Chartered Accountants FirmRegistration No. 118421W

Mitesh M Nagar Partner Membership No. 173787 UDIN:

Place: Ahmedabad Date : 29-06-2020

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