The Board of Directors meeting was held on Monday, August 10, 2026, commencing at 04:30 PM and concluding at 05:20 PM. The meeting considered and approved the un-audited financial results together with the Limited Review Report issued by the statutory auditors, M/s. J.H. Mehta & Co, Chartered Accountants, Ahmedabad.
Key Financial Figures (in ₹ Lakh)
- Total Income: ₹406.15 (Q1 FY27) vs ₹407.51 (Q1 FY26)
- Interest Expended: ₹2328.36 (Q1 FY27) vs ₹3501.82 (Q1 FY26)
- Operating Expenditure: ₹42.95 (Q1 FY27) vs ₹58.28 (Q1 FY26)
- Employees cost: ₹18.64
- Other operating expenses: ₹24.31
- Operating Loss before provisions & contingencies: ₹(1965.16)
- Exceptional Items: ₹(2.50)
- Provision for NPA: ₹(2.50) provided
- Net Loss after Tax: ₹(1967.66) (Q1 FY27) vs ₹(3102.13) (Q1 FY26)
- Paid-up Equity Share Capital: ₹8911.40 (Face value ₹10 each)
- Reserves as of March 31, 2026: ₹(328194.54)
- Government of Gujarat Shareholding: 55.09%
- Basic and diluted EPS (not annualized): ₹(2.21) (Q1 FY27) vs ₹(3.48) (Q1 FY26)
NPA Ratios
- Gross NPA: ₹39743.80 lakh
- Net NPA: ₹39743.80 lakh
- % of Gross NPA to Gross advances: 100%
- % of Net NPA to Net advances: 100%
- Return on assets: 0.00%
Significant Accounting Notes
1. The Corporation is primarily engaged in term lending business with no reportable segments as per AS-17.
2. Due to an increase in Loan Assets, the Corporation provided ₹2.50 lakh towards NPA provision in Q1 FY27, compared to a provision of ₹12.96 lakh in Q4 FY26 and a write-back of ₹50.46 lakh in Q1 FY26.
3. Pursuant to a Board decision dated May 30, 2026, the Corporation discontinued the practice of providing interest @ 2% on the default amount of a government soft loan of ₹621.37 crore with effect from April 1, 2026. Consequently, default interest of ₹1220.79 lakh accrued for the period April 1, 2026 to June 30, 2026 has not been provided in the results. Had this interest been accounted for, the net loss would have been higher by ₹1220.79 lakh.
Auditor's Qualified Opinion
The statutory auditors, J.H. Mehta & Co., issued a qualified review report with two main reservations:
1. Going Concern Basis: The financial results are prepared on a going concern basis despite completely eroded net worth and default in repayment obligations due to liquidity problems, which is not in accordance with AS-1.
2. Dues Payable to Government of Gujarat: Dues are subject to confirmation and adjustment, and the effect on interest is not ascertainable.
Management's View
- The Corporation is a statutory body established under the State Financial Corporations Act, 1951, and thus prepares accounts on a "going concern" assumption.
- Regarding government loans, a request to make the loan interest-free from July 1, 2012, is pending with the Government of Gujarat. The outstanding details are submitted quarterly, and separate confirmation is not obtained as the accounts are verified by other authorities.
The results were reviewed by the Audit Committee and approved by the Board of Directors. The results have been published in the Financial Express (Gujarati and English editions of Ahmedabad) and are available on the Corporation's website under Investor Relations - Financial Results - FY 2026-27.