Your Directors have pleasure in presenting the Thirty Eighth (38th) Annual Report ofyour Company together with the Audited Statement of Accounts of Silicon Valley InfotechLimited ("the Company") for the year ended 31st March 2021.
The Standalone financial performance of the Company for Financial year ended 31stMarch 2021 are as follows :
|. Particulars || |
| ||2020-2021 ||2019-2020 |
| ||(Rs.) ||Rs.) |
|Revenue from Operations ||294374 ||- |
|Other Income ||- ||- |
|Total Revenue ||294374 ||- |
|Profit/(Loss) before Tax ||(3033824) ||(3767145) |
|Tax Expense ||- ||- |
|Net Profit/(Loss)for the year after Tax ||(3033824) ||(3767145) |
|Other Comprehensive Income for the year Net of Tax ||- ||- |
|Total Comprehensive Income for the year ||(3033824) ||(3767145) |
|Basic and Diluted Earnings per Share ||(0.02) ||(0.03) |
TRANSFER TO GENERAL RESERVE
During the year under review no amount was transferred to General Reserve.
In view of the loss incurred during the year under review the Board of Directors didnot recommend any dividend for the financial year ended 31st March 2021.
During the year under review your Company incurred total loss of Rs. 3033824/- asagainst total loss of Rs. 3767145/- in the previous financial year. The performance ofthe Company has not been up to the expectation due to high volatility in the market. YourDirectors are making all efforts to improve the performance of the Company in future.
CHANGE IN NATURE OF BUSINESS IF ANY
There was no change in the nature of business of the Company during the financial yearended 31st March 2021.
MATERIAL CHANGES AND COMMITMENTS
There have been no material changes and commitments affecting the financial position ofthe company which have occurred since 31st March 2021 being the end of the FinancialYear of the Company to which financial statements relate and the date of the report.
The paid up equity capital as on 31st March 2021 was Rs. 1296.80 Lakhs. During theyear under review the Company has not issued shares with differential voting rights norhas granted stock options or sweat equity.
LISTING OF EQUITY SHARES
The Equity Shares of your Company are presently listed on 2 (two) Indian StockExchanges i.e. The Bombay Stock Exchange Limited (BSE) and The Calcutta Stock ExchangeLimited (CSE). The reason for suspension of shares of the Company from trading in CSE hasnot been communicated and your directors are taking necessary steps for the same.
Listing fees for the financial year 2021-2022 have been paid to Stock Exchanges. Theannual custodian fees to NSDL & CDSL for the Securities of the Company held indematerialized mode with them for the year 2021-2022.
TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
Pursuant to the provisions of the Companies Act 2013 the Company is not required totransfer any amount to Investor Protection and Education Fund as the Company has notdeclared any Dividend since its incorporation and as such there is no amount of dividendwhich was due and payable and remained unclaimed and unpaid for a period of seven years.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the Articles of Association and provisions of the Companies Act2013 Smt. Krishna Banerjee (DIN: 06997186) retire by rotation and being eligible offerherself for re-appointment. The Board recommends her re-appointment for the approval ofthe members.
Shri Santosh Kumar Jain (DIN 00174235) was re-appointed as Managing Director of theCompany for a period of five years with effect from 2nd December 2016. The present tenureof Shri Santosh Kumar Jain expires on 1st December 2021.
Shri Santosh Kumar Jain shall attain 70 years of age on 13th January 2024 and inaccordance with the provisions of Section 203 and Schedule V of the Companies Act 2013(the 'Act') a person who has attained the age of 70 years can be appointed as managingdirector only by passing a special resolution in which case the explanatory statementannexed to the notice for such motion shall indicate the justification for appointing suchperson.
The Board of Directors on recommendation of Nomination & Remuneration Committeerecommends Special Resolution for reappointment of Shri Santosh Kumar Jain as ManagingDirector w.e.f. 2nd December 2021 as mentioned in item No. 3 of the Notice for approvalof the Members of the Company through evoting.
The disclosures about Directors required pursuant to Regulation 36 of the SEBI (ListingObligations and Disclosure Requirements) Regulations (hereinafter referred as "SEBIListing Regulations") and Clause 1.2.5 of the Secretarial Standard are given in theNotice of AGM forming part of the Annual Report. Consent for appointment as requiredfrom respective Directors have been received.
The Board recommends their appointment/re-appointment for the approval of the members.
All Independent Directors have given declarations that they meet the criteria ofindependence as laid down under Section 149 (6) of the Act and Regulation 16(1)(b) of SEBI(LODR) Regulations 2015.
CODE OF CONDUCT
Your Company has adopted a Code of Conduct for its Board Members and Senior Managementpersonnel. The code of conduct has also been posted on the official website of the Companywww.siliconvalleyinfo.co.in.
BUSINESS RESPONSIBILITY REPORT (BRR)
Securities Exchange Board of India (SEBI) vide circular CIR/ CFD/DIL/8/2012 datedAugust 13 2012 has mandated the inclusion of BRR as part of the Annual Report for the top100 listed entities based on their market capitalization on Bombay Stock Exchange Ltd andNational Stock Exchange of India Ltd as at 31st March 2012. In view of the requirementsspecified the company is not mandated for the providing the BRR and hence do not formpart of this Report.
CORE SKILLS OF THE BOARD
The details of the Core Skills of the Board of Directors of the Company forms a part of"Report on Corporate Governance".
The details of the number of meetings of the Board held during the financial year2020-2021 forms a part of "Report on Corporate Governance".
COMMITTEES OF THE BOARD
The Board of Directors has the following Committees: 1. Audit Committee.
2. Nomination and Remuneration Committee. 3. Stakeholders' Relationship Committee.
The details of the Committees along with their respective composition number ofmeetings and attendance at the meeting held during the financial year 2019-2020 forms apart of "Report on Corporate Governance".
NOMINATION & REMUNERATION POLICY
The Board of Directors has framed a policy which lays down a framework in relation toremuneration of Directors Key Managerial Personnel and other employees of the Company.This Policy has also laid down the criteria for determining qualifications positiveattributes independence of Director and Board diversity and criteria for evaluation ofBoard its Committee and individual Directors. The policy is stated in the Report onCorporate Governance.
Pursuant to the provisions of the Act and SEBI (LODR) Regulations 2015 the Board hascarried out an evaluation of its own performance performance of the Directors as well asthe evaluation of the working of its committee.
The performance evaluation of the Independent Directors was carried out by the entireBoard excluding the Director being evaluated. The performance evaluation of the Directorand Non Independent Director was carried out by the Independent Directors at their meetingwithout the attendance of Non-Independent Directors and members of the management. TheDirectors were satisfied with the evaluation results.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
None of the employees employed during the year was in receipt of remuneration inaggregate of Rupees 10200000 or more per annum for the financial year 2019-2020 or Rs.850000 or more per month for any part of the Financial Year as set out in the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 Therefore no suchdetails have been provided as required under section197(12) of the Companies Act 2013read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of managerialPersonnel) Rules 2014.
The ratio of remuneration of each Director to the median employee's remuneration andsuch other details in terms of Section 197(12) of the Companies Act 2013 read with rule 5of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014.
(i) The ratio of the remuneration of each Director to the median remuneration of theemployees of the Company for the financial year -
No remuneration is paid to directors for the financial year 2020-2021.
(ii) The percentage increase in remuneration of each Director Chief Financial OfficerChief Executive Officer Company Secretary or Manager if any in the financial year -
There has been no increase in the remuneration of the Managing Director or ChiefExecutive Officer Chief Financial Officer & Company Secretary during the year.
(iii) The percentage increase in the median remuneration of employees in the financialyear
There is no percentage increase in the median remuneration of employees in thefinancial year.
(iv) The number of permanent employees on the rolls of Company -
The number of permanent employees on the rolls of Company is 9.
(v) Average percentile increase already made in the salaries of employees other thanthe managerial personnel in the last financial year and its comparison with the percentileincrease in the managerial remuneration and justification thereof and point out if thereare any exceptional circumstances for increase in the managerial remuneration -
No average percentage increase taken place in the salaries of total employees. (vi)Affirmation that the remuneration is as per the remuneration policy of the Company -Yes
DIRECTOR'S RESPONSIBILITY STATEMENT
As stipulated under the provisions contained in Section 134(3)(c) read with Section134(5) of the Companies Act 2013 ("Act") the Board of Directors to the bestof its knowledge and belief and according to the information and explanations obtained byit hereby states that:
i) in the preparation of the annual accounts the applicable accounting standards havebeen followed;
ii) The directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that were reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit or loss of the Company for the year under review;
iii) The directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;
iv) The directors have prepared the annual accounts on a going concern basis;
v) The directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively and
vi) The directors had devised proper system to ensure compliance with the provisions ofall applicable laws and that such system were adequate and operating effectively.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Audit Committee of the Board of Directors actively reviews the adequacy andeffectiveness of the internal control system and suggests improvements to strengthen thesame. In opinion of the board the existing internal control framework is adequate andcommensurate to the size and nature of the business of the Company. During the year suchcontrols were tested and no reportable material weaknesses in the design or operation wereobserved.
M/s. Dash & Associates Chartered Accountants performs the duties of internalauditors of the company for the year ended 31st March 2021. In order to monitor theperformance on a continuous basis. Management has a system to review Internal AuditReports with a view to monitoring the adequacy of internal control in place.
SUBSIDIARY/JOINT VENTURE/ASSOCIATE COMPANY
The Company does not have any Subsidiary/Joint Venture/Associate.
During the year under review our Company has not accepted any deposits from public and/or shareholders during the year under review within the meaning of Section 73 of theCompanies Act 2013 read with the Companies (Acceptance of Deposit) Rules 2014 andaccordingly as of 31st March 2020.
LOANS GUARANTEES AND INVESTMENTS
Pursuant to Section 186(11) of the Companies Act 2013 your Company being thenon-banking financial Company are exempted from disclosure in the Annual Report.
EMPLOYER EMPLOYEE RELATIONSHIP
The Company has maintained a cordial relationship with its employees which resulted insmooth flow of business operations during the year under review.
RELATED PARTY TRANSACTION
All related party transactions that were entered into during the financial year were inthe ordinary course of the business and were on arm's length basis. Thus disclosure inForm AOC-2 is not required. Further there were no materially significant related partytransactions entered by the company with Promoters Directors Key Managerial Personnel orother persons which may have potential conflict with interest of the company. The policyon Related Party transaction as approved by Board of Directors has been uploaded on thewebsite of the Company. The web link of the same is www.siliconvalleyinfo.co.in. Detailsof the transactions with Related Parties are provided in the accompanying financialstatements.
The SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 mandatedthe formulation of certain policies for all listed companies. All applicable policies areavailable under the head Policy on the Company's website: www.siliconvalleyinfo.co.in. Thepolicies are reviewed periodically by the Board and updated based on need and newcompliance requirement.
CORPORATE SOCIAL RESPONSIBILITY
The provisions of the Companies Act 2013 regarding Corporate Social Responsibilitiesare not applicable to the Company.
PARTICULARS OF CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGEEARNINGS AND OUTGO.
Since the Company does not own any manufacturing facility requirement regarding thedisclosure of particulars of conservation of energy and technology absorption prescribedby the rules is not applicable. During the year under review there was no inflow/outflowof foreign exchange.
RISK MANAGEMENT POLICY
The Company has a Risk Management Policy in accordance with the provisions of the Actand SEBI (LODR) Regulations 2015 which provides a mechanism for risk assessment andmitigation. At present the Company has not identified any element of risk which maythreaten the existence of the Company.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
The Company has a mechanism called "Whistle Blower Policy" for Directors andemployees to report genuine concerns or grievances. The policy is available on the websiteof the Company www.siliconvalleyinfo.co.in.
SIGNIFICANT AND MATERIAL ORDER PASSED BY THE REGULATORS COURTS AND TRIBUNALS
During the year there are no significant and material order passed by theRegulators/Courts which would impact the going concern of the Company and its futureoperation.
AUDITORS Statutory Auditors
At the Annual General Meeting of the Company held on 25th September 2019 theShareholders had approved the appointment of M/s. Deoki Bijay & Associates. CharteredAccountants (Firm Registration No. 324386E) as the statutory auditor of the company atthe 36th Annual General Meeting of the Company to hold office for a Second term of fiveconsecutive years up to the conclusion of the 41st Annual General Meeting of the Companyas per section 139 of Companies Act 2013. As per the amendment of Section 139 of theCompanies Act 2013 which have been made effective from 07th May 2018 ratification ofthe appointment of the auditor is no longer required. Accordingly the Statutory Auditorsof the Company continue to be appointed in this AGM.
Pursuant to the provisions of Section 204 of the Act and The Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 the Board of Directors of the Companyappointed Ms. Ankita Goenka (Membership No. FCS No.:10572 C.P. No.14204) PracticingCompany Secretary of M/s. Ankita Goenka & Associates to conduct Secretarial Audit forthe Financial Year 2020-2021.
The Secretarial Audit Report for the Financial Year 2020-2021 in Form MR-3 is annexedherewith as Annexure "I" to this report. The report is self-explanatory and doesnot call for any further comments. They have also carried out Secretarial Compliance Auditas per Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 for FY 2020-2021.
Pursuant to the provisions of Section 138 of the Companies Act 2013 M/s. Dash &Associates Chartered Accountants Kolkata was appointed as the Internal Auditor of theCompany for the Financial Year 2020-2021.
AUDITORS' REPORT/SECRETARIAL AUDIT REPORT
The Directors against the observation made by the Auditors as qualified opinion inAudit Report would like to state that the windmill together with the land has beenauctioned by M/s Rural Electrification Co. Ltd which has been challenged by the Companybefore the Appellate Authority and the petition has been under hearing Since the auctionof windmill together with the land itself has been challenged the same has not giveneffect to as the matter is pending before the Appellate Authority.
Further in respect of deposit of Rs. 100 lacs as per Delhi High Court the same aredeposited in an Escrow Account which was subjected to refund in case no mutual settlementcould be possible between the company and REC. As such the same has been shown separatelyand not adjusted with Loan amount.
With regards to qualification the company has obtained a loan of Rs 270.59 Lacs fromRural Electrification Corporation Ltd (REC Ltd) in respect of wind mill projects againstsecurity of land having book value Rs.13.68 Lacs and the windmill thereon having nildepreciated value. Certain Listed Shares of the Company were also lien against the loanwith the REC Ltd. The said land and windmill have been auctioned under order of RecoveryOfficer DRT Delhi which has been challenged by company before Appellate Authority andthe said shares 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.
The observation made in the Auditors' Report read together with relevant notes thereonare self explanatory and hence do not call for any further comments under Section 134 ofthe Companies Act 2013. The observation made in the Secretarial Audit Report is selfexplanatory and hence do not call for any further comments.
REPORTING OF FRAUDS BY AUDITORS
During the year under review neither the statutory auditors nor the secretarialauditors have reported to the Audit Committee of the Board under Section 143(12) of theAct any instances of fraud committed against the Company by its officers or employeesthe details of which would need to be mentioned in this Report.
COMPLIANCE WITH SECRETARIAL STANDARDS
The Board of Directors of the Company hereby confirms that your Company has compliedwith the applicable Secretarial Standards issued by The Institute of Company Secretariesof India.
EXTRACT OF ANNUAL RETURN
Pursuant to the provisions of section 92(3) and 134(3)(a) of the Companies Act 2013('the Act') and rule 12(1) of the Companies (Management and Administration) Rules 2014extract of annual return is annexed and is marked as Annexure 'II'.
MANAGEMENT DISCUSSION & ANALYSIS REPORTS
In accordance with Regulation 34 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 the Management's Discussion and Analysis Report for theyear under review is presented in a separate section forming part of the Annual Reportand marked as Annexure - "IV".
The Company is committed to good corporate governance practices. The report onCorporate Governance for the financial year ended 31st March 2021 as per regulation34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 forms part of this Annual Report. The requisite Certificate from thepracticing company secretaries of the Company confirming compliance with the conditions ofCorporate Governance is annexed to this Report and marked as Annexure "III"
POLICY ON SEXUAL HARASSMENT.
The Company has adopted policy on Prevention of Women at workplace in accordance withthe Sexsual Harassment of Women (Prevention Prohibition and Redressal) Act 2013. Duringthe Financial Year ended 31st March 2021 the company has not received any complaintspertaining to Sexual Harassment.
Your Directors acknowledge the support and owe a debt of gratitude to the FinancialInstitutions Banks Central and State Government authorities Regulatory authoritiesStock Exchanges and all the various stakeholders for their continued co-operation andsupport to the Company.
Your Directors also wish to place on record their appreciation to all of the Company'semployees and workers at all level for their enormous efforts as well as their collectivecontribution to the Company's performance.
|On behalf of the Board of Directors || |
|For Silicon Valley Infotech Limited || |
|Santosh Kumar Jain ||Krishna Banerjee |
|Managing Director || |
|DIN : 00174235 ||DIN : 06997186 |
|Registered Office : || |
|10 Princep Street || |
|2nd Floor || |
|Kolkata - 700 072 || |
|Dated : 11.08.2021 || |