Notes to Financial Statements for the year ended 31 March, 2015

1. SIGNIFICANT ACCOUNTING POLICIES Basis of brparation

The financial statements of the company have been brpared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has brpared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013 and the guidelines issued by the Reserve Bank of India ('RBI') as applicable to a Non Banking Finance Company. The financial statements have been brpared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year, except for the change in accounting policy explained below.

Change in Accounting Policy:

Presentation and Disclosure of Financial Statement

During the year ended 31-03-2015, the revised Schedule III notified under the Companies Act, 2013, has become applicable to the company, for brparation and brsentation of its financial statements. The adoption of revised Schedule III does not impact recognition and measurement principles followed for brparation of financial statements. However, it has significant impact on brsentation and disclosures made in the financial statements. The company has also reclassified the brvious year figures in accordance with the requirements applicable in the current year.

Use of Estimates:

The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

Tangible Fixed Assets

Tangible Fixed Assets are stated at cost less accumulated debrciation and impairment losses, if any. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to it's working condition for it's intended use.

Debrciation on Tangible Fixed Assets

Debrciation on Tangible Fixed Assets is provided on a straight Line Method at the rates and manner brscribed under Schedule XIV of Companies Act, 1956, till brvious year . During the year pursuant to enactment of Companies Act, 2013 ( the 'Act') , the Company has , effective from 1st April, 2014 reviewed and revised the estimated useful life of Tangible assets in accordance with the provisions of Schedule II of the At and provided debrciation using Strait Line Method at the rates and manner brscribed under Schedule II Part "C" of the Companies Act, 2013.

Impairment of Tangible and Intangible Assets:

During the year pursuant to enactment of Companies Act, 2013( the 'Act '), the Company has, effectively reviewed and revised the estimated useful life of Tangible Assets and in accordance with adjusted excess over estimated life value of the assets against debrciation provision available and balance adjusted against revenue reserved. After impairment, debrciation is provided on the revised carrying amount of the asset over its remaining useful life.

Investments:

Investments are classified as long term and current in accordance with the Accounting Standard on 'Accounting for Investments' (AS 13) issued by the Institute of Chartered Accountants of India. Long-term investments are valued at acquisition cost unless the fall in value is of permanent nature. Current investments are valued at lower of cost and market value and in case of unquoted shares lower of cost or break up value.

In accordance with the Revised Schedule III to the Companies Act, 2013, the portion of the Long Term Investments classified above, and expected to be realized within 12 months of the reporting date, have been classified as current investments.

Stock in Trade

The securities acquired with the intention of short term holding and trading positions are considered as stock-in-trade and disclosed as current assets. Stock in trade of shares being current in nature is valued lower of the cost or fair market price. The valuation of the unquoted shares has been made at cost or net assets value whichever is lower.

Revenue Recognition

Revenue /Income is generally accounted for on accrual basis as they are earned or incurred except for dividend, which is accounted for on cash basis.

Retirement and other employee benefits

The Company has adopted the revised Accounting Standard 15 - Accounting for Employee Benefits. The accounting policy followed by the Company in respect of its employee benefit schemes is set out below:

Gratuity:

Short term employee benefits are accounted in the period during which the services have been rendered. Defined contribution plans such as Provident Fund Act 1952 is not applicable to the Company.

Leave Encashment:

The employees of the Company are entitled to leave as per the leave policy of the Company however no carry forward is permitted and the same if any remain balance is enchased at the end of the year.

Income Taxes

Income tax expenses comprises of current tax (i.e. amount of tax for the period determined in accordance with the income-tax law) & the deferred tax charge or benefit (reflecting the tax effect of timing differences between accounting income and taxable income for the period).

Deferred Taxation:

The deferred tax charge or benefit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed debrciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonable/virtually certain (as the case may be) to be realized.

Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20 -Earning per Share brscribed by the Companies (Accounting Standards) Rules, 2006.

Segment Reporting Policies Segment Policies:

The company brpares its segment information in conformity with the accounting policies for brparing and brsenting the financial statements of the company as a whole.

Provisions

The company creates a provision when there is brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amounts of the obligation. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent Liabilities / Assets

A contingent liabilities is a possible obligation that arise from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the company or a brsent obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements. Contingent assets are not recognised in the financial statements. However contingent assets are assessed continually and if it is virtually certain that an economic benefit will rise, asset and related income are recognised in the period in which the change occurs.

Cash and Cash Equivalents

Cash and Cash Equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less, as per Accounting Standard 3 "Cash Flows".

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. Pursuant to the enactment of Companies Act, 2013 Company has applied the estimated useful life of Fixed Assets as specified in Schedule II of the Act. Accordingly the carrying value of the Fixed Assets as on 1st April, 2014 is being debrciated over the remaining useful life of the fixed assets. The Debrciation charged for the year ended on 31st March, 2015 is lower by Rs. 4,174/-.

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

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

7. The Company provided loss on impairment of assets during the year as per the recommendations of Accounting Standard - 28 Impairment of Assets, issued by the Institute of Chartered Accountants of India.

8. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development ('MSMED') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid /payable are required to be furnished.

9. The brvious year figures have been regrouped and reclassified wherever necessary to make them comparable with the current year figures

10. In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

11. 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.60,00,000/- (Previous year Rs.60,00,000/-) or for any part of that year at a rate which in the aggregate was not less than Rs.5,00,000/- ( Previous year Rs.500,000/-) per month

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

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

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

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

Company recognized Deferred Tax Assets at Rs.86,445/- (P.Y. 2,85,217/-) on Unabsorbed Loss Carried Forward as per Income Tax as company has made profit in current year which justify the chances of recovering carried forward loss in future, on prudent basis as per Accounting Standard 22 issued by ICAI. Deferred tax Assets W/off during the year Rs.1,98,771/-

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

i) GSB Securities Pvt. Ltd. Rs. 6,82 ,051/-(P.Y. Rs. 37,33,266/-) Maximum amount due at any time during the year Rs.37,33,266 /- (Rs. 64,54,095/-)

For S. K. RATHI & CO.

 Chartered Accountants

For and on behalf of the Board

 For GSB Finance Ltd

Sd/-(CA C. K. Rathi)

Prop.

M. No. 031071

 FRN: 108724W

Sd/- (Girdharilal Biyani)

 Chairman

Sd/- (Ramakant Biyani)

Director

Place : MUMBAI.

Date : 30th May, 2015