You are here » Home » Companies » Company Overview » Silicon Valley Infotech Ltd

Silicon Valley Infotech Ltd.

BSE: 531738 Sector: Financials
NSE: PRASGLOFIN ISIN Code: INE913A01024
BSE 00:00 | 01 Aug 0.03 0
(0.00%)
OPEN

0.03

HIGH

0.03

LOW

0.03

NSE 05:30 | 01 Jan Silicon Valley Infotech Ltd
OPEN 0.03
PREVIOUS CLOSE 0.03
VOLUME 1002
52-Week high 0.03
52-Week low 0.03
P/E
Mkt Cap.(Rs cr) 0
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.03
CLOSE 0.03
VOLUME 1002
52-Week high 0.03
52-Week low 0.03
P/E
Mkt Cap.(Rs cr) 0
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Silicon Valley Infotech Ltd. (PRASGLOFIN) - Auditors Report

Company auditors report

To

The Members of

SILICON VALLEY INFOTECH LIMITED

Report on the Ind AS Financial Statements

Opinion

We have audited the accompanying Ind AS financial statements of SILICON VALLEYINFOTECH LIMITED ("the Company") which comprises the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss (including Other Comprehensive Income)statement of changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the basis forqualified opinion paragraph the aforesaid Ind AS financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (India AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021and its loss (Including Other Comprehensive Income) Statement of Changes in Equity andits cash flows for the year ended on that date.

Basis for Qualified Opinion

Attention is drawn to Note No 23. The company has obtained a loan of Rs. 270.59 Lacsfrom Rural Electrification Corporation Ltd (REC Ltd) in respect of wind mill projectsagainst security of land having book value Rs. 13.68 Lacs and the windmill thereon havingnil depreciated value. The said land and windmill have been auctioned under order ofRecovery Officer DRT Delhi which has been challenged by company before AppellateAuthority. Certain Listed Shares of the Company were also lien against the loan with theREC Ltd. The said land and windmill have been auctioned under order of Recovery OfficerDRT Delhi which has been challenged by company before Appellate Authority and the saidshares have got transferred by virtue of order of Recovery Officers DRT Delhi.

Pending order of the Appellate Authority the Company has not made any adjustment inthe accounts in respect of said land windmill related loan obtained from REC Ltd andShares Investments. The Company has deposited Rs. 100 Lacs as per order of Delhi HighCourt. In absence of adequate information impact thereof on Financial Statements is notascertainable.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on Ind ASFinancial Statement.

Key Audit Matters:

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed and communicated with management in the context of our audit of theInd AS financial statements as a whole and in forming our opinion thereon and we do notprovide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in the report.

SL. No. Key Audit Matter How our audit addressed the Key Audit Matter
1. IT systems and controls
Financial accounting and reporting processes especially in the financing activities are fundamentally reliant on IT systems and IT controls to process significant transaction volumes hence we identified IT systems and controls over financial reporting as key audit matter for the company. We tested the operating effectiveness of the company's IT access controls over the information systems that are important to financial reporting and various interfaces configuration and other identified application controls.

Emphasis of Matter a. Attention is invited to Note 15 of the accounts whereconsidering the pandemic due to Covid-19 the company continued with its policy of workfrom home to ensure continuity Our opinion is not modified in respect of matter stated inpoint mentioned above

Information Other than the Ind AS Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Directors Report including Annexures to Directors' Report andReport on Corporate Governance but does not include the Ind AS Financial Statements andour auditors' report thereon. The Management Discussion and Analysis Directors' Reportincluding Annexures to Directors' Report and Report on Corporate Governance are expectedto be made available to us after the date of this auditor's report.

Our opinion on the Ind AS financial statements does not cover the other information andwe will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or out knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the annual report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance andtake appropriate action as applicable under the relevant laws and regulations.

Responsibility of Management and Those charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance total comprehensive income (changes in equity) and cashflows of the Company in accordance with the Ind AS and accounting principles generallyaccepted in India including the accounting Standards specified under section 133 of theAct 2013 read with relevant rules issued thereunder and other Accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error. In preparing the Ind AS financialstatements management is responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process

Auditor's Responsibility for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Ind AS FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal controls relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the interim consolidated financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditors Report) order 2016 ( the Order) issued bythe Central Government of India in terms of section 143 (11) of the Act we give in theAnnexure A a Statement on the matters specified in paragraph 3 and 4 of the order.

(ii) As required by Section 143(3) of the Act we report that :

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (Including Other ComprehensiveIncome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaidInd AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. (e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in Annexure B. (g) With respect to the other matter to be included in theAuditor's report in accordance with the requirements of Section 197(16) of the act asamended -In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be includes in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us : i. TheCompany has disclosed the impact of pending litigations in its financial statements; ii.The Company did not have any long term contracts including derivative contact for whichthere were any material foreseeable losses. iii. There were no amount which were requiredto be transferred to the Investors Education and Protection Fund by the Company at theyear.

For DEOKI BIJAY & Co.

CHARTERED ACCOUNTANTS

Firm Regn. No : 313105E
CA RAMESH KUMAR CHOKHANI
Dated : 21st day of June 2021

Partner

Place : Kolkata Memb No. 062081
UDIN : 21062081AAAABX5630

Annexure A to the Independent Auditors' Report

Referred to Paragraph 1 under "Report on Other Legal and RegulatoryRequirements" section in the Independent Auditor's Report of even date on the Ind ASfinancial statements of SILICON VALLEY INFOTECH LIMITED for the year ended 31stMarch 2021 we report that : (i) (a) The Company has maintained proper records showingfull particulars including quantitative details and situation of fixed assets.

(b) Land and windmill thereon were secured against Loan given by REC Ltd have beenauctioned under order of Recovery Officer DRT which has been challenged by Company beforeAppellate Authority.

(ii) The Company has carried out physical verification of inventory at reasonableintervals. As per the information and explanations given to us no material discrepancieswere noticed during such verification.

(iii) (a) The Company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013.

(b) As the Company has not given any loans clause iii(a) iii(b) and clause iii(c) ofparagraph 3 of 'the order' are not applicable to the Company.

(iv) The Company has not granted any loans investments guarantee and security to anyperson falling under section 185 and 186 of the companies act 2013. Thus paragraph 3(iv)of the Order is not applicable to the Company.

(v) The Company has not accepted any deposits and therefore the directives issued bythe Reserve Bank of India and the provisions of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules formed thereunder are not applicableto the Company.

(vi) The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act for any of the product/services rendered by the Company.

(vii) (a) According to information and explanation given to us and as per the recordsof the Company examined by us the Company is regular in depositing with appropriateauthorities undisputed statutory dues including Provident Fund Employees' StateInsurance Income-tax Goods and Service tax Cess and other statutory dues applicable toit except following undisputed amounts payable in respect of Income Tax in arrears as atMarch 31 2021 for a period of more than six months from the date they became payable :

Name of the Statute Amount (Rs.) Period to which the amount relates
Income Tax Act 1961 177044/- Asst Year 2004-2005
Income Tax Act 1961 1778/- Asst Year 2007-2008
Income Tax Act 1961 5471/- Asst Year 2010-2011

(b) According to the information and explanations given to us there are no dues ofIncome Tax or Sales Tax or Service Tax or Duty of Customs or Duty of Excise or Value AddedTax or Cess and any other Statutory dues which have not been deposited on account of anydispute.

(viii) Details of default in repayment of dues from Financial Institution : Particulars: Loan taken from REC Ltd Amount of Default : Rs. 27059000/-

Period of Default : As per information received from the management the company is notin default as only 90% of loan was disbursed and 10% was never disbursed.

Remarks if any : The Company had taken loan from REC Ltd of Rs. 27059000/- in thefinancial year 1994. REC has filed case in the Delhi High Court which has been challengedby the Company. As Per directives received from the Delhi High Court the Company hasdeposited Rs. 10000000/-. The REC auctionedLandWind Mill and certain shares which weresecured against the loan. The company filed appeal before Appellate Authorities (ix) TheCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3(ix)of the Order is not applicable.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India we haveneither come across any instance of fraud by the Company or any fraud on the Company byits officers or employees noticed or reported during the year nor have we been informedof any such instance by the management.

(xi) In our opinion and according to the information and explanations given to us andbased on examination of records of the Company the managerial remuneration has beenprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act wherever applicable.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and the records of theCompany examined by us the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

(xvi) The Company is a Non-Banking Financial Institution without accepting PublicDeposits registered under section 45-IA of the Reserve Bank of India Act 1934 havingvalid Certificate of Registration.

Annexure B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 ('the Act')

We have audited the internal financial controls over financial reporting of SILICONVALLEY INFOTECT LIMITED ('the Company') as on 31st March 2021 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safe guarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the 'Guidance Note') and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operative effectiveness. Our audit of internalFinancial Controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion of the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purpose in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in responsible detail accurately and fairy reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are records as necessary to permit preparation of financial statements inaccordance with authorizations of the Management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and nor be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future period are subject to the risk that the internal financial controlover financial reporting may become inadequate because of change in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For DEOKI BIJAY & Co.

CHARTERED ACCOUNTANTS

Firm Regn. No : 313105E
CA RAMESH KUMAR CHOKHANI
Dated : 21st day of June 2021

Partner

Place : Kolkata Memb No. 062081
UDIN : 21062081AAAABX5630

.