Notes to Accounts of GSB Finance Ltd.

Mar 31, 2025

W Provisions, Contingent liabilities and Contingent assets

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists
and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation
and the amount of such obligation can be reliably estimated.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot
be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow
of resources embodying economic benefits is remote, no provision or disclosure is made.

Contingent assets are not recognised in the financial statements; however they are disclosed where the inflow of
economic benefits is probable. When the realization of income is virtually certain, then the related asset is no longer a
contingent asset and is recognised as an asset.

Note 23 Financial Risk Management

Risk Management isan integral part of thebusiness practices oftheCompany. The framework of Risk Management concentrates on formalisinga system to deal with
the most relevant risks, building on existing Management practices, knowledge and structures. With the help of a reputed consultancy firm, the Company has
developed and implemented a comprehensive Risk Management System to ensure that risks to the continued existence of the Company as a going concern and to its
growth are identified and remedied on a timely basis. While defining and developing the formalised Risk Management System, leading standards and practices have
been considered. The Risk Management System is relevant to business reality, pragmatic and simpleand involves the following:

1 Risk identification and definition

Focused on identifying relevant risks, creating updating clear definitions to ensure undisputed understanding along with details of the underlying root causes
contributing factors.

2 Risk classification:

Focused on understanding the various impacts of risks and the level of influence on its root causes, this involves identifying various processes generating the root
causes and clear understanding of risk interrelationships.

3 Risk assessment and prioritisation

Focused on determining risk priority and risk ownership for critical risks. This involves assessment of the various impacts taking into consideration risk appetite and
existing mitigation controls

4 Risk mitigation

Focused on addressing critical risks to restrict their impact(s) to an acceptable level (within the defined risk appetite). This involves a clear definition of actions,
responsibilities and milestones.

5 Risk reporting and monitoring

Focused on providing to the Board and the Audit Committee periodic information on risk profile evolution and mitigation plans.

Management of liquidity risk

The principal sources of liquidity of the Company are cash and cash equivalents, thecash flow that isgenerated from operations. TheCompany believes that current cash
and cash equivalents, cash flowthat isgenerated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low. The following table
shows the maturity analysis of financial liabilities of the Company based on contractually agreed undiscounted cash flows as at the Balance Sheet date:

Note 24 Management of credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual Obi igation
Trade receivables

Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large, diverse and across sectors and countries. All trade receivables are reviewed and assessed for
default on a quarterly basis.

Historical experience of collecting receivablesof the Company issupported by low level of past default and hence the credit risk is perceived to below.

29(iii) Details of non performing financial assets purchased/sold

The Company has not purchased and sold any non performing financial asset during the current and previous year
29(iv) Details of Single Borrower Limit (SGL)/Group Borrower Limit (GBL) exceeded

The Company has not exceeded the prudential exposure limits during the current and previous year
29(v) Unsecured advances

Total loan sand advances includes Rs. 12.72 Crorecrore which are unsecured advances where as in previous year Rs. 12.57 Crore
29(vi) Registration obtained from other financial sector regulators

The Company does not have registered in other financial sector regulators except Reserve Bank of India (RBI)

29(vii) Detailsof penalties imposed by RBI and other regulators

Rs. Nil penalties has been levied by the Reserve Bank of India or any other Regulators for the year ended 31 March 2024. (Previous Year NIL Lakhs)

Now 30 The disclosures as required by the Master Direction -Monitoring of frauds In NBFCs Issued by RBI dated 29 September 2014

The company has (nude monitoring I rum who on quarterly basis review the overall procedure and policies there are no cases of frauds during the year as well as no cases In the pnreous year.
Not* 31 The Company has not been declared as a wilful drfauiter by any bank or financial institution or other lender in the financial years ended March 31, 2025 and March 31. 2024.

Note 32 Reladonship with Struck off Companies

There are no transactions with companies whose names have been struck on under section 24g of Companies Act 2013 or section 560 of Companies Act 1956 in the financial yean ended
March 31, 2025 and Marth 31, 2024

Note 33

Registration of charges or satisfaction vath Registrar of Companies (ROC)

Where any charge or satisfaction yet to be registered with ROC beyond the statutory period, details and reasons thereof shall be disclosed. The Company shall provide the details in relation to
each charge or satisfaction that are not negstered by the statutory date. Such details may include a brief description of the charges or satisfaction, the location of die Registrar, the period (in
days or months) by which such charge had to be registered and the reason tor d*fay in registration.

Compliance with number of layers of companies

When the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017. the
name and CiN ofthecompan.es beyond the specified layers and the relationship f ertern of holding of the company in such downstream compan.es shall be disclosed

Not* 35 Utilisation of Borrowed fund and Share Premium

The Company, as part of its normal business, grants loans and advances, makes investment, provides guarantees to and accept deposits and borrowings from its customers, other entities and
persons These transactions are pan of Company''s normal non-banking finance business, which Is conducted ensuring adherence to all regulatory requirements.

Other than the transactions described above, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other source or hind of funds) by the
Company to or in any other persons or entities, including foreign entitle (''Intermediarie'') with the understanding whether recorded in writing or otherwise that the Intermediary shall lend
orinvesi in party identified by or on behalf of the Company (Ultimate Benefinarie). The Company has also not received any fund from any pariie (Funding Party) with the understanding that
th* Company shall whether, directly or indirectly lend or invest m other persons or entities identified by or on tehatf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee
security or die tike on bdialf of the Ubmate BmcAovici

Note 36 Figures tor the previous period have been regrouped and rearranged, wherever necessary, to make them comparable with the current Period

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Mar 31, 2024

W Provisions, Contingent liabilities and Contingent assets

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event
exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such
obligation and the amount of such obligation can be reliably estimated.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be
measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of
resources embodying economic benefits is remote, no provision or disclosure is made.

Contingent assets are not recognised in the financial statements; however they are disclosed where the inflow of economic
benefits is probable. When the realization of income is virtually certain, then the related asset is no longer a contingent asset
and is recognised as an asset.

33(iii) Details of non performing financial assets purchased/sold

The Company has not purchased and sold any non performing financial asset during the current and previous year
33(iv) Details of Single Borrower Limit (SGL)/Group Borrower Limit (GBL) exceeded

The Company has not exceeded the prudential exposure limits during the current and previous year
NP Unsecured advances

Total loans and advances includes Rs. 12.57 Crorecrore which are unsecured advances where as in previous year Rs. 16.49 Crore
33(vi) Registration obtained from other financial sector regulators

The Company does not have registered in other financial sector regulators except Reserve Bank of India (RBI)

33(vii) Details of penalties imposed by RBI and other regulators

Rs. Nil penalties has been levied by the Reserve Bank of India or any other Regulators for the year ended 31 March 2024. (Previous Year NIL Lakhs)

Note 34 The disclosures as required by the Master Direction -Monitoring of frauds in NBFCs issued by RBI dated 29 September 2016

The company has fraude monitoring team who on quarterly basis review the overall procedure and policies there are no cases of Frauds during the year as well as no cases in the previous
year.

Note 35 The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in the financial years ended March 31,2023 and March 31,2022

Note 36 Relationship with Struck off Companies

There are no transactions with companies whose names have been struck off under section 248 of Companies Act, 2013 or section S60 of Companies Act, 1956 in the financial years
ended March 31,2024 and March 31,2023.

Note 37 «

Registration of charges or satisfaction with Registrar of Companies (ROC)

Where any charges or satisfaction yet to be registered with ROC beyond the statutory period, details and reasons thereof shall be disclosed. The Company shall provide the details in
relation to each charge or satisfaction that are not registered by the statutory date. Such details may include a brief description of the charges or satisfaction, the location of the
Registrar, the period (indaysor months) by which such charge had to be registered and the reason for delay in registration.

Compliance with number of layers of companies

Where the company has not complied with the number of layers prescribed under clause (87)of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017,
the name and CIN of thecompanies beyond the specified layers and the relationship /extent of holding of thecompany in such downstream companies shall bedisclosed.

Note 39

Utilisation of Borrowed fund and Share Premium

TheCompany, as part of its normal business, grants loans and advances, makes investment, provides guarantees to and accept deposits and borrowings from its customers, other
entities and persons. These transactionsare part of Company''s normal non-banking finance business, which is conducted ensuring adherence to all regulatory requirements.

Other than the transactions described above, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by
the Company to or in any other persons or entities, including foreign entities ("Intermediaries*) with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). TheCompany hasalso not received any fund from any parties (Funding Party)
with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the likeon behalf of the Ultimate Beneficiaries.

Note 40 Figures for the previous period have been regrouped and rearranged, wherever necessary, to make them comperable with the current Period.

For and on behalf of Board of Directors of
GSB Finance Limited

Kamakant Biyani
Managing Director
DIN Number : 00523178

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Mar 31, 2014

1. Provision has not been made for the gratuity as no employee has attained the qualifying period of service for the entitlement of benefits.

2. Provision has not been made for Listing Fees payable to Calcutta, Ahmadabad, Jaipur and Uttar Pradesh Stock Exchanges, as stock exchange are not working and company shares could not be dealt with in these stock exchanges. Previous year''s provisions written off.

3. Expenditures incurred in Foreign currency is Nil ( P.Y. Nil) = Nil (P.Y. Rs. Nil ).

4. Earning in foreign currency is NIL (Previous year Nil).

5. Previous year figures have been re-grouped and re-arranged wherever found necessary.

6. No Person was employed by the company either throughout the year or for a part of the year under review whose remuneration for the year in the aggregate was not less than Rs. 6,00,000/- (Previous year Rs. 6,00,000/-) or for any part of that year at a rate which in the aggregate was not less than Rs. 50,000/- (Previous year Rs. 50,000/-) per month.

7. The Company has not accepted any deposits from public during the year.

8. These accounts are not signed by Secretary as the company has no secretary as on date, the accounts were approved by the directors.



9. Related Party Disclosures:

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below: List of related Parties

i) Associates

a) GSB Capital Markets Ltd. c) GSB Share Custodian Services Ltd.

b) GSB Securities Pvt. Ltd.

ii) Key Management Personnel

a) Shri G. S. Biyani, Director e) Shri Yogesh Patel, Director

b) Shri R. S. Biyani, Director f) Shri Sajjan Poddar, Director

c) Mrs. Ritika Gupta, Director g) Shri Manish Zanwar, Director d) Shri Parasram Kabra, Director

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Mar 31, 2013

1. Provision has not been made for the gratuity as no employee has attained the qualifying period of service for the entitlement of benefits.

2. Provision has not been made for Listing Fees payable to Calcutta , Ahmadabad, Jaipur and Uttar Pradesh Stock Exchanges , as stock exchange are not working and company shares could not be dealt with in these stock exchanges. Previous year''s provisions written off.

3. Particulars of goods traded in (Shares, Units etc.).

4. Expenditures incurred in Foreign currency is Nil ( P.Y. Nil) = Nil (PY. Rs. Nil).

5. Earning in foreign currency is NIL (Previous year Nil).

6. Previous year figures have been re-grouped and re-arranged wherever found necessary.

7. No Person was employed by the company either throughout the year or for a part of the year under review whose remuneration for the year in the aggregate was not less than Rs. 6,00,000/- (Previous year Rs.6,00,000/-) or for any part of that year at a rate which in the aggregate was not less than Rs 50 000/- ( Previous year Rs.50,000/-) per month.

8. Debts due from the Companies under the same management are as under: -

i) GSB Securities Pvt. Ltd. Rs. 28,11,548/- (P.Y. Rs. 65,72,976/-) Maximum amount due at any time during the year Rs. 76,57,208/- (Rs. 1,58,28,158/-) ii) GSB Capital Markets Ltd. Rs. Nil (P.Y. Rs. 1,46,080/-) Maximum amount due at any time during the year Rs. 4,06,996/- (Rs. 25,54,400/-)

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Mar 31, 2012

1. Provision has not been made for the gratuity as no employee has attained the qualifying period of service for the entitlement of benefits.

2. Provision has not been made for Listing Fees payable to Calcutta , Ahmadabad, Jaipur and Uttar Pradesh Stock Exchanges , as stock exchange are not working and company shares could not be dealt with in these stock exchanges. Previous year's provisions written off.

3. Expenditures incurred in Foreign currency is Nil ( P.Y. Nil) = Nil (P.Y Rs. Nil).

4. Earning in foreign currency is NIL (Previous year Nil).

5. Previous year figures have been re-grouped and re-arranged wherever found necessary.

6. No Person was employed by the company either throughout the year or for a part of the year under review whose remuneration for the year in the aggregate was not less than Rs.6,00,000/- (Previous year Rs.6,00,000/-) or for any part of that year at a rate which in the aggregate was not less than Rs.50,000/- (Previous year Rs. 50,000/-) per month.

7. The Company has not accepted any deposits from public during the year.

8. These accounts are not signed by Secretary as the company has no secretary as on date, the abcounts were approved by the directors.

9. Company recognizes deferred tax credit & debit in the accounts on prudent basis.

[A] Tax effect due to current year loss to be carry forward

Company recognized Deferred Tax Assets at Rs.21,46,600/- (P.Y. 40,78,400/-) on Unabsorbed Loss and Depreciation as company has made profit in previous year which justify the chances of recovering current year and brought forward loss in future, on prudent basis as per Accounting Standard 22 issued by ICAI

10. Debts due from the Companies under the same management are as under: -

i) GSB Securities Pvt. Ltd. Rs. 65,72,976/- (P.Y. Rs. 42,80,557/-) Maximum amount due at any time during the year Rs. 1,58,28,158/- (Rs. 1,97,88,736/-) ii) GSB Capital Markets Ltd. Rs. 1,46,080/- (RY. Rs. NIL) Maximum amount due at any time during the year Rs. 25,54,400/- (Rs. 1,29,42,332/-)

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Mar 31, 2011

1. Provision has not been made for the gratuity as no employee has attained the qualifying period of service for the entitlement of benefits.

2. Expenditures incurred in Foreign currency is Nil ( P.Y. Nil) = Nil (PY. Rs. Nil).

3. Earning in foreign currency is NIL (Previous year Nil).

4. Previous year figures have been re-grouped and re-arranged wherever found necessary.

5. No Person was employed by the company either throughout the year or for a part of the year under review whose remuneration for the year in the aggregate was not less than Rs.6,00,000/- (Previous year Rs.6,00,000/-) or for any part of that year at a rate which in the aggregate was not less than Rs 50,000/- ( Previous year Rs.50,000/-) per month.

6. The Company has not accepted any deposits from public during the year.

7. These accounts are not signed by Secretary as the company has no secretary as on date, the accounts were approved by the directors.

8. Company recognizes deferred tax credit & debit in the accounts on prudent basis.

[A] Tax effect due to -

Difference between the written down values of Assets under-

The Companies Act, 1956 Rs. 10,87,881 /-

And as per Income Tax Act, 1961. Rs. 5,73,200 /-

Deferred Tax Liabilities (Net) Rs. 1,59,037 /- (P.Y. 1,85,377/-)

Deferred Tax Savings Expenses Rs. 26,340/-(P.Y. 1,261/-)

[B] Tax effect due to current year loss to be carry forward

Company recognized Deferred Tax Assets at Rs. 40,78,400/-(P.Y. 21,57,600/-) on Unabsorbed Loss and Depreciation as company has made profit in previous year which justify the chances of recovering current year and brought forward loss in future, on prudent basis as per Accounting Standard 22 issued by ICAI

Carry Forward of Loss under IT Provision 1,31,05,006/-

Carry Forward of unabsorbed Depreciation 93,626/-

1. Related Party Disclosures

List of related Parties

i) Associates

a) GSB Capital Markets Ltd.,

b) GSB Securities Pvt. Ltd.,

c) GSB Share Custodian Services Ltd.,

ii) Key Management Personnel

a) Shri G.S. Biyani, Director

b) Shri R.S. Biyani, Director

c) Mrs. Ritika S.Gupta, Director

d) Shri Parasram Kabra

e) Shri Yogesh Patel

f) Shri Sajjan Podar

9. Debts due from the Companies under the same management are as under: -

i) GSB Securities Pvt. Ltd. Rs. 42,80,557/- (P.Y. Rs. 4,48,764/-) Maximum amount due at any time during the year Rs. 1,97,88,736/- (Rs. 1,67,30,375/-)

ii) GSB Capital Markets Ltd. Rs. NIL (RY. Rs. 65,271/-) Maximum amount due at any time during the year Rs. 1,29,42,332/- (Rs. 1,47,33,307/-)

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Mar 31, 2010

1. Provision has not been made for the gratuity as no employee has attained the qualifying period of service for the entitlement of benefits.

2. Particulars of goods traded in (Shares, Units etc.).

3.Expenditures incurred in Foreign currency is Nil ( P.Y. Nil) = Nil (P.Y. Rs. Nil).

4. Earning in foreign currency is NIL (Previous year Nil).

5. Previous year figures have been re-grouped and re-arranged wherever found necessary.

6. No Person was employed by the company either throughout the year or for a part of the year under review whose remuneration for the year in the aggregate was not less than Rs. 6,00,000/- (Previous year Rs. 6,00,000/-) or for any part of that year at a rate which in the aggregate was not less than Rs. 50,000/- (Previous year Rs. 50,000/-) per month.

7. The Company has not accepted any deposits from public during the year.

8. These accounts are not signed by Secretary as the company has no secretary as on date, the accounts were approved by the directors.

9. Company recognize deferred tax credit & debit in the accounts on prudent basis.

[A] Tax effect due to - Difference between the written down values of Assets under - The Companies Act, 1956 Rs. 12, 66,750 7- And as per Income Tax Act, 1961. Rs. 6, 66,826 7- Deferred Tax Liabilities (Net) Rs. 1, 85,377 7- (P.Y. 1,84,1167-) Deferred Tax Savings Expenses Rs.1,261 7- (P.Y. 22097-)



[B] Tax effect due to current year loss to be carry forward

Company recognized Deferred Tax Assets at Rs. 21,57,600 /- (P.Y. 12,68,8518/-) on Unabsorbed Loss as company has made profit which justify the chances of recovering brought forward loss in future, on prudent basis as per Accounting Standard 22 issued by ICAI



Carry Forward of Loss under IT Provision 67,37,534/-

Carry Forward of unabsorbed Depreciation 2,44,992/-

10. Related Party Disclosures List of related Parties

i) Associates

a) GSB Capital Markets Ltd.,

b) GSB Securities Pvt. Ltd.,

c) GSB Share Custodian Services Ltd.,

ii) Key Management Personnel

a) Shri G. S. Biyani, Director

b) Shri R. S. Biyani, Director

c) Mrs. Ritika Gupta, Director

d) Shri Parasram Kabra

e) Shri Yogesh Patel

f) Shri Sajjan Podar

11. Debts due from the Companies under the same management are as under: -

i) GSB Securities Pvt. Ltd. Rs.4, 48,764/- (P.Y. Rs. 11, 61,673/-) Maximum amount due at any time during the year Rs.1, 67, 30,375/-(Rs. 2, 28, 14,237/-)

ii) GSB Capital Markets Ltd. Rs.65,271/- NIL (P.Y. Rs. NIL) Maximum amount due at any time during the year Rs. 1,47,33,307/- (Rs. 1, 41, 12,007/-)