Mar 31, 2015
Dear Members,
Your Directors have pleasure in presenting this Annual Report of your
Company together with the Audited Statements of Accounts for the year
ended March 31, 2015.
Some of the members had expressed displeasure on the style of working
of the previous Board of Directors and filed a Company Petition before
Company Law Board for their ouster from the Company citing Oppression
and Mismanagement.
The Company Law Board vide its order dated December 11, 2013 directed
an Extraordinary General Meeting to be held on January 11, 2014. In the
said meeting, members removed all the then Directors of the Company and
appointed 3 new directors on the Board. The said appointment and
removal was confirmed by the Company Law Board, Principle Bench, New
Delhi vide its order dated April 4, 2014.
The Old Board had also irregularly allotted 1,08,44,426 Equity Shares
to themselves, their relatives and associate company on May 8, 2013 and
2,97,00,000 Equity Shares to another associate company on August 5,
2013. The said shares have been cancelled by the Company Law Board,
Principle Bench, New Delhi vide its order dated June 4, 2015.
The old board did not handover the old records of the Company. Hence,
the new Board filed a Company Petition No. 10 of 2014 for handover of
old records and for cancellation of irregular allotments. Company Law
Board, Principle Bench, Delhi vide its order dated June 4, 2015
directed the old Board of directors to forthwith handover all records
to the new Board. The Company is yet to receive any records from the
old board.
(Rs. in Lacs)
Year Ended Year Ended
Financial Results 31.03.2015 31.03.2014
Income - -
Profit before Tax (7.58) (3.09)
Less : Provision for Taxation - -
Profit after Tax (7.58) (3.09)
Add : Profit brought forward from Previous
Year
Balance carried forward (7.58) (3.09)
DIVIDEND
As there was no income in the year under review the Company expresses
its inability to give any dividend for the year under review.
REGISTERED OFFICE
The members of the company have approved the Shifting of Registered
Office of the Company from 3, Prime Rose, Near Airtel Gallery,
Lokhandwala Complex, Andheri (West), Mumbai - 400 053 to Office No.8,
Rainbow House, Above Idea Showroom, Opp Deepak Hospital, Savedi,
Ahmednagar - 414 003. The resolution was approved by the members on
January 23, 2015 through Postal Ballot. The said shifting is subject to
the approval of Central Government.
BUSINESS SEGMENT
Your Company primarily operates in the business segment of mining and
trading.
RISK & CONCERNS
Subsequent to the Company Law Board, Principle Bench, Delhi vide its
order dated June 4, 2015, the company is trying to recover from its
financial mess done by its old board. The Board is confident of its
recovery. The company has complained to Economic Offence Wing regarding
misappropriation of funds and is also in the process of reporting the
same to Serious Fraud Investigation Office.
OPPORTUNITIES
The overall downturn in the fuel prices will only benefit the company
and lower the operational cost of the company.
THREATS
The Board of directors perceives that competition from established
players and change in government policies as major threats. These
coupled with Price volatility, Trade policy uncertainties and
Environmental concerns also possess its own challenges.
The Company business is of cyclic nature which has its own problems.
OVERVIEW
SVC Resources Limited (SVC) is a BSE listed company. SVC is a
professionally managed Company with the Board Members having rich and
varied experience in Exploration, Mining, Processing, Trading, Finance
and other fields.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
The present internal control systems are commensurate with its size.
SUBSIDIARY
As per records available from BSE Website and MCA Website, Company has
only one overseas subsidiary SVC Resources FZC, Sharjah, UAE. However,
the company has no records pertaining to its subsidiary. Hence,
subsidiary accounts are not enclosed.
PUBLIC DEPOSITS
As the Old Board has not handed over the books of accounts, statutory
records and minutes book, the company is not in a position to ascertain
acceptance of public deposits. Company Law Board, New Delhi, vide its
order dated June 4, 2015 has directed the old board to handover books
of accounts and other records to the new board. However, the old board
is yet to hand over the same.
DIRECTORS
During the year under review the following directors were removed by
the members in their Extraordinary General Meeting held on January 11,
2014 and confirmed by Company Law Board, Principle Bench, Delhi vide
its order dated April 4, 2014
1. Ashok Gupta
2. Akshat Gupta
3. Vinod Bansal
4. Vinay Poddar
5. Siddharth Bihani
6. Abhijeet Mittal
7. Kunal Raheja
The members appointed the following directors in their Extraordinary
General Meeting held on January 11, 2014 and confirmed by Company Law
Board, Principle Bench, Delhi vide its order dated April 4, 2014:
1. Mr. Zalak Shah
2. Mr. Om Prakash Chugh
3. Dr. Riyaz Khan
The Board of Directors appointed Mr. Mohammed Ali as Managing Director
in their Meeting held on April 9, 2014.
Pursuant to successful completion of voluntary Open Offer given by
Lorgan Lifestyle Limited to the members of SVC as per SEBI (Substantial
Acquisition of Shares and Takeover) Regulation, 2011, Mr. Rajesh Baheti
has been appointed as Chairman of the Company in the Board Meeting held
on October 7, 2014 and Lorgan Lifestyle Limited became the new promoter
of the company.
Mr. Rajesh Baheti, Chairman is liable to retire by rotation and being
eligible, has offered himself for re-appointment.
Mr. Mohammed Ali's re-appointment as Managing Director is subject to
approval of members in the ensuing Annual General Meeting.
CORPORATE GOVERNANCE
Pursuant to SEBI Circular, compliance of Corporate Governance is not
mandatory. However, the company has complied with the provisions of
Clause 49 of the Listing Agreement.
A separate section on Corporate Governance forms part of the Directors'
Report and certificate from your Company's Auditors on Corporate
Governance as stipulated in Clause 49 of the Listing Agreement is
included in the Annual Report.
HUMAN RESOURCES
Company encourages a culture that develops and empowers people,
promotes team building and nurtures new ideas. The Company's
recruitment practice ensures that suitable candidates with merit are
recruited and provided with the right opportunities to grow within the
organisation.
AUDITORS
Statutory Auditors
M/s D N Khatri, Chartered Accountants were appointed as Statutory
Auditor of the Company in the previous AGM held on August 28, 2015 and
their term expires at the ensuing AGM, being eligible, the Board has
recommended their re- appointment.
Secretarial Auditors
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and Companies (Appointment and Remuneration of Managerial Person)
Rules, 2014, the Company has appointed M/s Ramesh Chandra Bagdi &
Associates to undertake the Secretarial Audit of the Company.
In terms of provisions of Section 204(1) of the Companies Act, 2013,
Secretarial Audit Report is annexed to this Board Report.
COMMENTS ON AUDITORS' REPORT:
The notes referred to in the Auditors' Report are self explanatory and
as such they do not call for any further explanation.
PARTICULARS OF EMPLOYEES
The Company has no directors or employees who are in receipt of
remuneration exceeding the sum prescribed under section 197 of the
Companies Act, 2013 read with Rule (5) of Companies (Appointment and
Remuneration of Managerial Person) Rules, 2014
BOARD EVALUATION
Pursuant to the provisions of Companies Act, 2013 and clause 49 of the
Listing Agreement, the Board has carried out annual performance
evaluation of its own performance, the directors individually as well
the evaluation of the working of its Audit, Nomination & Remuneration
and Stakeholders' Relationship Committee, including the Chairman of the
Board who were evaluated on parameters such as level of engagement and
contribution and independence of judgment thereby safeguarding the
interest of the Company. The performance evaluation of the Independent
Directors was carried out by the entire Board. The performance
evaluation of the Chairman and the Non Independent Directors was
carried out by the Independent Directors. The Directors expressed their
satisfaction with the evaluation process.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information pertaining to Conservation of Energy, Technology
Absorption and Foreign Exchange earnings and outgo as required under
section 134(3)(m) of the Companies Act, 2013 read with rule 8(3) of the
Companies (Accounts) Rules, 2014 is annexed to this report.
DIRECTORS RESPONSIBILITY STATEMENT
As the Old Board has not handed over the books of accounts, statutory
records and minutes book, the company is not in a position to confirm
and ascertain the genuineness of various balances and advances shown in
the Annual Report for the year ended March 31, 2013.
The accounts for the current year has been prepared on the basis of
Bank Statements and records available in public domain.
Company Law Board, Principle Bench, New Delhi, vide its order dated
June 04, 2015 has directed the old board to handover books of accounts
and other records to the new board. However, the old board is yet to
hand over the same.
Pursuant to Section 134 of the Companies Act, 2013 the Directors state
that:
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
(b) Appropriate accounting policies have been selected and applied
consistently and have made judgments and estimates that are reasonable
and prudent, so as to give a true and fair view of the state of affairs
of the Company as at March 31, 2015 and of the profit and loss of the
Company for the year ended March 31, 2015;
(c) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
(d) The annual accounts have been prepared on a going concern basis;
(e) Proper internal financial controls were followed by the Company and
such internal financial controls are adequate and were operating
effectively;
(f) Proper systems are devised to ensure compliance with the provisions
of all applicable laws and that such systems are adequate and operating
effectively.
DECLARATION BY INDEPENDENT DIRECTOR
Pursuant to Section 149(6) of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Independent Directors of the Company have
given the declaration to the Company that they qualify the criteria of
independence as required under the Act.
VIGIL MEGHANISM
The Company has established a Vigil Mechanism that enables the
Directors and Employees to report genuine concerns. The Vigil Mechanism
provides for (a) adequate safeguards against victimization of persons
who use the Vigil Mechanism; and (b) direct access to the Chairperson
of the Audit Committee of the Board of Directors of the Company in
appropriate or exceptional cases.
CORPORATE SOCIAL RESPONSIBILITY
The Company has incurred loss in the year under review. Hence, the CSR
Provisions does not apply to the company.
RELATED PARTY TRANSACTIONS
No transactions were carried out between any of the related parties in
the year under review.
RISK MANAGEMENT
The Company has devised and implemented a mechanism for risk management
and has developed a Risk Management Policy. The Policy provides for
creating a Risk Register, identifying internal and external risks and
implementing risk mitigation steps.
FAMILIARIZATION PROGRAMME FOR INDEPENDENT DIRECTORS
The Company proactively keeps its Directors informed of the activities
of the Company, its management and operations and provides an overall
industry perspective as well as issues being faced by the industry.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form
MGT 9 is annexed herewith.
APPRECIATION
The Board of Directors wishes to convey their appreciation to all your
Company's employees for their performance and continued support. The
Directors would also like to thank all the Shareholders, Consultants,
Customers, Vendors, Bankers, Service Providers, and Government and
Statutory Authorities for their continued support.
Place: Mumbai For and on behalf of the Board
Date: September 02, 2015 For SVC Resources Limited
Rajesh Baheti
Chairman
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting this Annual Report of your
Company together with the Audited Statements of Accounts for the year
ended March 31, 2014.
Some of the members had expressed displeasure on the style of working
of the previous Board of Directors and filed a Company Petition before
Company Law Board for their ouster from the Company citing Oppression
and Mismanagement.
The Company Law Board vide its order dated December 11, 2013 directed
an Extraordinary General Meeting to be held on January 11, 2014. In the
said meeting, members removed all the then Directors of the Company and
appointed 3 new directors on the Board. The said appointment and
removal was confirmed by the Company Law Board, Principle Bench, Delhi
vide its order dated April 4, 2014.
The Old Board had also irregularly allotted 1,08,44,426 Equity Shares
to themselves, their relatives and associate company on May 8, 2013 and
2,97,00,000 Equity Shares to another associate company on August 5,
2013. The said shares have been cancelled by the Company Law Board,
Principle Bench, Delhi vide its order dated June 4, 2015.
The old board did not handover the old records of the Company. Hence,
the new Board filed a Company Petition No. 10 of 2014 for handover of
old records and for cancellation of irregular allotments. Company Law
Board, Principle Bench, Delhi vide its order dated June 4, 2015
directed the old Board of directors to forthwith handover all records
to the new Board.
The erstwhile statutory auditors of the Company didn't extend their
co-operation to the new Board. Hence, it was not possible for the
Company to convene its Annual General Meeting within the prescribed
time limit. Company Law Board, Principle Bench, Delhi vide its order
dated June 4, 2015 has granted an extension of 6 months for holding its
Annual General Meeting.
In the mean time, your company approached the Regional Director,
Western Region for removal of Auditors. The erstwhile Statutory
Auditors of the company ceased to be the Auditors of the Company
pursuant to order dated December 10, 2014 passed by the Regional
Director, Western Region. The said order also allowed the Company to
appoint new Statutory Auditors for the Company.
(Rs. in Lacs)
Year Ended Year Ended
Financial Results 31.03.2014 31.03.2013
Income - 427.38
Profit before Tax (3.09) (1,874.13)
Less : Provision for Taxation - -
Profit after Tax (3.09) (1,874.13)
Add : Profit brought forward
from Previous Year - -
Balance carried forward (3.09) (1,874.13)
DIVIDEND
As there was no income in the year under review the Company expresses
its inability to give any dividend for the year under review.
REGISTERED OFFICE
The members of the company have approved the Shifting of Registered
Office of the Company from 3, Prime Rose, Near Airtel Gallery,
Lokhandwala Complex, Andheri (West), Mumbai - 400 053 to Office No.8,
Rainbow House, Above Idea Showroom, Opp Deepak Hospital, Savedi,
Ahmednagar - 414 003. The resolution was approved by the members on
January 23, 2015 through Postal Ballot. The said shifting is subject to
the approval of Central Government.
BUSINESS SEGMENT
Your Company primarily operates in the business segment of mining and
trading.
RISK & CONCERNS
Subsequent to the Company Law Board, Principle Bench, Delhi vide its
order dated June 4, 2015, the company is trying to recover from its
financial mess done by its old board. The Board is confident of its
recovery. The company has complained to Economic Offence Wing regarding
misappropriation of funds and is also in the process of reporting the
same to Serious Fraud Investigation Office.
Opportunities
The overall downturn in the fuel prices will only benefit the company
and lower the operational cost of the company.
Threats
The Board of directors perceives that competition from established
players and change in government policies as major threats. These
coupled with Price volatility, Trade policy uncertainties and
Environmental concerns also possess its own challenges.
The Company business is of cyclic nature which has its own problems.
OVERVIEW
SVC Resources Limited (SVC) is a BSE listed company. SVC is a
professionally managed Company with the Board Members having rich and
varied experience in Exploration, Mining, Processing, Trading, Finance
and other fields.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
The present internal control systems are commensurate with its size.
Subsidiary
As per records available from BSE Website and MCA Website, Company has
only one overseas subsidiary SVC Resources FZC, Sharjah, UAE. However,
the company has no records pertaining to its subsidiary. Hence,
subsidiary accounts are not enclosed.
PUBLIC DEPOSITS
As the Old Board has not handed over the, books of accounts, statutory
records and minutes book, the company is not in a position to ascertain
acceptance of public deposits. Company Law Board, New Delhi, vide its
order dated June 4, 2015 has directed the old board to handover books
of accounts and other records to the new board. However, the old board
is yet to hand over the same.
DIRECTORS
During the year under review the following directors were removed by
the members in their Extraordinary General Meeting held on January 11,
2014 and confirmed by Company Law Board, Principle Bench, Delhi vide
its order dated April 4, 2014
1. Ashok Gupta
2. Akshat Gupta
3. Vinod Bansal
4. Vinay Poddar
5. Siddharth Bihani
6. Abhijeet Mittal
7. Kunal Raheja
The members appointed the following directors in their Extraordinary
General Meeting held on January 11, 2014 and confirmed by Company Law
Board, Principle Bench, Delhi vide its order dated April 4, 2014:
1. Mr. Zalak Shah
2. Mr. Om Prakash Chugh
3. Dr. Riyaz Khan
Pursuant to successful completion of voluntary Open Offer given by
Lorgan Lifestyle Limited to the members of SVC as per SEBI (Substantial
Acquisition of Shares and Takeover) Regulation, 2011, Mr. Rajesh Baheti
has been appointed as Chairman of the Company in the Board Meeting held
on October 7, 2014 and Lorgan Lifestyle Limited became the new promoter
of the company.
Both the appointments i.e. appointment of Mr. Mohammed Ali as Managing
Director and appointment of Mr. Rajesh Baheti as Chairman has been
approved by the members of the company vide resolutions passed by
Postal Ballot on January 23, 2015.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forms part of the Directors'
Report and the certificate from your Company's Auditors on Corporate
Governance as stipulated in Clause 49 of the Listing Agreement is
included in the Annual Report.
HUMAN RESOURCES
Company encourages a culture that develops and empowers people,
promotes team building and nurtures new ideas. The Company's
recruitment practice ensures that suitable candidates with merit are
recruited and provided with the right opportunities to grow within the
organisation.
AUDITORS
The erstwhile Statutory Auditors of the company ceased to be the
Auditors of the Company pursuant to order dated December 10, 2014
passed by the Regional Director, Western Region.
M/s D N Khatri, Chartered Accountants were appointed as Statutory
Auditor of the Company pursuant to resolution approved by the members
on January 23, 2015 through Postal Ballot
COMMENTS ON AUDITORS' REPORT:
The notes referred to in the Auditors' Report are self explanatory and
as such they do not call for any further explanation as required under
Section 217(3) of the Companies Act, 1956. Further, the company has
complained to Economic Offence Wing regarding misappropriation of funds
and is also in the process of reporting the same to Serious Fraud
Investigation Office.
PARTICULARS OF EMPLOYEES
There is no information as required pursuant to the provisions of
Section 217(2 A) of the Companies Act, 1956 read with the Companies
(Particular of Employees) Amendments Rules, 1988 to be reported.
PARTICULARS UNDER SECTION 217 (1) (E) OF THE COMPANIES ACT, 1956
Further, pursuant to the provisions of Section 217(1)(e) of the
Companies Act, 1956 read with the Companies (Disclosure of particulars
in the Report of Board of Directors) Rules 1988, there is no material
information regarding conservation of energy, technology absorption,
foreign exchange earnings and out go concerning your Company to be
reported.
Your Company has taken the necessary steps to conserve energy, absorb
upgraded technology where ever necessary. However there is no material
information required under Section 217(1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of particulars in the Report of
Board of Directors) Rules 1 988 to be reported.
DIRECTORS RESPONSIBILITY STATEMENT
As the Old Board has not handed over the books of accounts, statutory
records and minutes book, the company is not in a position to confirm
and ascertain the genuineness of various balances and advances shown in
the last Annual Report.
The accounts for the current year has been prepared on the basis of
Bank Statements and records available in public domain.
Company Law Board, Principle Bench, New Delhi, vide its order dated
June 04, 2015 has directed the old board to handover books of accounts
and other records to the new board. However, the old board is yet to
hand over the same.
In view of the above the Directors' Responsibility Statement, pursuant
to Section 217 (2AA) of the Companies (Amendment) Act, 2000 is not
being annexed.
APPRECIATION
The Board of Directors wishes to convey their appreciation to all your
Company's employees for their performance and continued support. The
Directors would also like to thank all the Shareholders, Consultants,
Customers, Vendors, Bankers, Service Providers, and Government and
Statutory Authorities for their continued support.
Place: Mumbai For and on behalf of the Board
Date: July 29, 2015 For SVC Resources Limited
Rajesh Baheti
Chairman
Mar 31, 2013
To the Members,
The Directors have pleasure in presenting the 37th Annual Report of
your Company together with the Audited Statements of Accounts for the
year ended March 31, 2013.
(Rs. in Lacs)
Financial Results Year Ended
31.03.2013 Year Ended
31.03.2012
Income 427.38 1001.02
Profit before Tax (1,874.13) (6.20)
Less : Provision for Taxation 0.00
Profit after Tax (1,874.13) (6.20)
Add : Profit brought forward
from Previous Year 413.59 419.79
Balance carried forward (1,460.54) 413.59
DIVIDEND
With a view to conserve the financial resources, no dividend has been
recommended for the year under review.
AUTHORISED SHARE CAPITAL
During the year under audit company has not increased authorized share
capital.
The members of the Company approved the increase in the Authorized
Share Capital from 7 Crores to 11 Crores on December,20,2010.
The approval of the members was once again sought for the increase in
the Authorised Share Capital from 11 Crores to 15 Crores on March
10,2011.
Subsidiary
Your Company has only one overseas subsidiary SVC Resources FZC,
Sharjah, UAE, and final accounts have not been produced by Shri Vishal
Singh, Shri Sunil Jain & Mr. Ashish Lodge as they are evading to meet
the Board of Directors. The accounts have now been prepared on the
basis of available records and based upon last trial balance and
transactions during the period.
PUBLIC DEPOSITS
The Company has neither invited nor accepted any public deposits,
during the year, under Section 58A of the Companies Act, 1956 and, as
such, no amount on account of principal or interest on public deposits
was outstanding as on the date of the Balance Sheet.
DIRECTORS
During the year under review there have been changes in the Board of
Directors of your Company.
In accordance with the provisions of the Companies Act, 1956 and
pursuant to the provisions of Articles of Association of your Company
Mr. Dattatray Sakhalkhar, Mr. Ashish Jain Dr. Mukesh Arora, Mr.Ashish
Lodge and Mr. Rajesh Kapoor were removed from the Board of director s
of the company due to absence from attending meetings of the Board.
Mr. Sunil Jain and Mr. Vishal Singh were not reappointed in last AGM.
Mr. Akshat Gupta and Mr. Siddharth Bihani were appointed as Additional
Director and retire at the forthcoming AGM. Mr. Akshat Gupta has been
proposed to be appointed and is eligible to be appointed at the
forthcoming Annual General Meeting.Mr. Siddharth Bihani resigned from
the Board on 27th May,2013.
Mr. Abhijeet Mittal and Mr. Kunal Raheja were appointed as Additional
Directors on 27th July, 2012 and they resigned on 3rd May, 2013.
Mrs Neha Gandhi, Mrs Shrishti Deora and Mr. Devesh Koli were appointed
as Additional Director on 13th June 2013 and they retire at the
forthcoming AGM.
Mr. R.K. Tiwari and Mr. Chandra Sen resigned from the Board on 25th
May, 2012
Further, none of the Directors of your Company are disqualified under
Section 274(1)(g) of the Companies Act 1956.
Mr. Vinod Bansal , Independent Director retires by rotation and being
eligible offer themselves for appointment.
CORPORATE GOVERNANCE
Your Company follows the principles of effective corporate governance
practices. Clause 49 of Listing Agreement deals with Corporate
Governance requirements which has been complied by your company.
A separate section on Corporate Governance forming part of the
Directors'' Report and the certificate from your Company''s Auditors on
Corporate Governance as stipulated in Clause 49 of the Listing
Agreement is included in the Annual Report.
HUMAN RESOURCES
Company encourages a culture that develops and empowers people,
promotes team building and nurtures new ideas. The Company''s
recruitment practice ensures that suitable candidates with merit are
recruited and provided with the right opportunities to grow within the
organization.
AUDITORS
M/s. D. P. Agarwal & Co., Chartered Accountants, Mumbai, Statutory
Auditors of the Company, hold office until the conclusion of ensuing
Annual General Meeting and have expressed their unwillingness for
re-appointment. The Company has received letter from M/s. Himank Desai
& Co., Chartered Accountants, Mumbai to the effect that their
reappointment if made would be within prescribed limits under Section
224 (1B) of the Companies Act, 1956. Members are requested to appoint
M/s. Himank Desai & Co., Chartered Accountants, Mumbai, as the
Statutory Auditors of the Company and authorize the Board of Directors
to fix their remuneration.
COMMENTS ON AUDITORS'' REPORT:-
Due to non-availability of statutory books, records and other
documents, the company could not produce the same to the statutory
auditor for carrying out audit. The company has now made arrangements
to produce such other documents to carry out the audit which has been
found satisfactory by the auditor. The company is still taking steps to
ensure restoration of the statutory records so as to bring it back to
normalcy. Other than the above facts, the notes referred to in the
Auditors'' Report are self explanatory and as such they do not call for
any further explanation as required under Section 217(3) of the
Companies Act, 1956.
PARTICULARS OF EMPLOYEES
People are the backbone of our operations. It is a matter of great
satisfaction for your Company that our employees have been very
supportive of your Company''s plan. By far the employee''s relations have
been cordial throughout the year.
There is no information as required pursuant to the provisions of
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particular of Employees) Amendments Rules, 1988 to be reported.
PARTICULARS UNDER SECTION 217 (1) (E) OF THE COMPANIES ACT, 1956
Further, pursuant to the provisions of Section 217(1)(e) of the
Companies Act, 1956 read with the Companies (Disclosure of particulars
in the Report of Board of Directors) Rules 1988, there is no material
information regarding conservation of energy, technology absorption,
foreign exchange earnings and out go concerning your Company to be
reported.
Your Company has taken the necessary steps to conserve energy, absorb
upgraded technology where ever necessary. However there is no material
information required under Section 217(1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of particulars in the Report of
Board of Directors) Rules 1988 to be reported.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000
the Directors confirm that:
1. In the preparation of the annuals accounts, for the year ended March
31 2013, all the applicable accounting standards prescribed by the
Institute of Chartered Accountants of India have been followed;
2. The Directors had adopted such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
your Company at the end of the financial year and of the profit of the
Company for that period
3. The Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities. Inspite of
the internal controls due to acts by certain professional Directors
acting in consult have defalcated assets of the company which was
beyond the control of the Board of Directors.
4. The Directors had prepared the annual accounts on a going concern
basis.
APPRECIATION
The Board of Directors wishes to convey their appreciation to all your
Company''s employees for their performance and continued support. The
Directors would also like to thank all the Shareholders, Consultants,
Customers, Vendors, Bankers, Service Providers, & Government and
Statutory Authorities for their continued support.
Place: Mumbai For and on behalf of the Board
Date5th August, 2013 For SVC Resources Limited
Registered Office:
104, Baba House,
1st Floor, sd/-
M.V. Road, Near
Cine Magic Cinema, Ashok Gupta Andheri
(E), Mumbai  400093 Chairman & Managing Director
Mar 31, 2012
To the Members,
The Directors have pleasure in presenting the 36th Annual Report of
your Company together with the Audited Statements of Accounts for the
year ended March 31, 2012.
(Rs. in Lacs)
Financial Results Year Ended
31.03.2012 Year Ended
31.03.2011
Income 1,001.02 573.87
Profit before Tax (6.20) 261.32
Less : Provision for Taxation 0.00 90.93
Profit after Tax (6.20) 170.39
Add : Profit brought forward from Previous Year 419.79 249.40
Balance carried forward 413.59 419.79
DIVIDEND
With a view to conserve the financial resources, no dividend has been
recommended for the year under review.
AUTHORISED SHARE CAPITAL
The Company Authorised Share Capital remains the same.
BONUS
The company did not issue bonus shares during the year.
REGISTERED OFFICE
The Registered Office of the Company has shifted from 518, Sagar Tech
Plaza, A Wing, Saki Naka Jn., Andheri Kurla Road, Andheri East, Mumbai
400 072 to 104, Baba House, 1st Floor, M.V. Road, Near Cine Magic
Cinema, Andheri
PERFORMANCE & CURRENT YEAR PROSPECTS
Your Company has diversified into mining and is in the activities of
mining of iron ore and trading in minerals.
During the year under review the turnover of your Company was Rs.
1001.02 Lacs and company suffered a loss of Rs. 6.20 lacs.
The performance of your subsidiary company SVC Resources FZC, Sharjah,
engaged in the business of trading in minerals was remarkable during
the year under review. The consolidated turnover of the company , while
the consolidated net profit before tax was not available
The Board of Directors and its Team of employees have put in full
efforts and performed excellently to sustain profitability of your
Company.
BUSINESS SEGMENT
Your Company primarily operates in the business segment of mining and
trading of iron ore, white earth, ochre, manganese, laterite etc. As
per the management''s perspective, the risks and returns from its
sales do not materially vary geographically. The mines of your company
are located at Dhamki and Dilar in the state of Madhya Pradesh.
Your Company offers its services to customers through best industry
practices in mining.
RISK & CONCERNS
It is a well known fact that risk is an integral part of any business.
If these risks are properly managed, a company will have ample
opportunity to inn smoothly and expand its activities. As a matter of
fact Enterprise Risk Management (ERM) is a process that covers the
entire organisation in which all the functions are involved to identify
and assess the various strategic, operational, social and economic
risks being faced by the company in its day to day activities and
thereafter determine the responses to either mitigate the risk or
eliminate the same.
Most of the companies in India now recognise ERM as a critical
management issue. This is apparent from the importance assigned to ERM
within the organisation and the resources being devoted to building ERM
capabilities.
Opportunities
1. Rapid magnestic growth
2. Robus growth in transportation, infrastructure, power capacity
addition and packaging
3. Diversification into steel production
4. Explanation and mining opportunities in India and abroad for
extraction and trading of high value minerals
Threats
1. Domestic competition from established players
2. Change in government policies
3. Price volatility
4. Trade Policy uncertainties
5. Environmental concerns
6. Cyclie nature of industry
The ever changing business environment necessitates continuous
monitoring, evaluation & management of significant risks faced by the
organization.
OVERVIEW
SVC Resources Limited is a Public Limited Company engaged in the
business of extraction, processes & sale of Ore and exploration &
development of mining assets.
Your Comany will continue to build capabilities and nurture a talent
pool with diverse skills set to delivery centinuous results. Your
Company has also strengthened its presence in mining and trading of
minerals.
Your Company is geared up to meet market demands and delivery schedules
and is confideration increasing its share in the Indian market. The
management has worked steadily to make SVC a company that can deliver
sustained, high quality growth.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
The Company''s present internal control systems are commensurate with
its size. However, looking at the growth in the size of the Company and
its operations it is strengthening these systems further. The Company
places great emphasis on the maintenance of effective internal
controls, both from the point of view of compliance with statutory
requirements as well as supporting the smooth and efficient running of
the business.
MATERIAL DEVELOPMENT IN HUMAN RESOURCES
The employees of your Company are dedicated and loyal to your Company.
Though there has been attrition in certain disciplines, the employees
in general have remained with your Company through thick and thin. On
the part of the Management, it is ensuring all-round comfort levels to
its employees, including the required training at all levels based on
the need. It is worth highlighting that industrial relations have been
cordial all along. Any difference is sorted out through discussions at
appropriate levels. The support of workmen needs special mention. The
employees of your Company are exposed to Mining Industry. Your
Company''s diversification project needs people with specific skill and
knowledge in other industries viz. upgradation of skills for operating
equipment with latest technology. In order to get people with requisite
knowledge and skills, your Company has to train /retrain its existing
manpower and also to go for fresh induction.
Subsidiary
Your Company has only one overseas subsidiary SVC Resources FZC,
Sharjah, UAE.
PUBLIC DEPOSITS
The Company has neither invited nor accepted any public deposits,
during the year, under Section 5 8A of the Companies Act, 1956 and, as
such, no amount on account of principal or interest on public deposits
was outstanding as on the date of the Balance Sheet.
DIRECTORS
During the year under review there has been no change in the Board of
Directors of you Company.
In accordance with the provisions of the Companies Act, 1956 and
pursuant to the provisions of Articles of Association of your Company
Mr Sunil Jain and Mr Vinay Poddar are liable to retire by rotation and
being eligible, offer themselves for re-appointment in the forthcoming
Annual General Meeting.
Further, none of the Directors of your Company are disqualified under
Section 274(1 )(g) of the Companies Act 1956.
CORPORATE GOVERNANCE
Your Company follows the principles of effective corporate governance
practices. Clause 49 of Listing Agreement deals with Corporate
Governance requirements which has been complied by your company.
A separate section on Corporate Governance forming part of the
Directors'' Report and the certificate from your Company''s Auditors
on Corporate Governance as stipulated in Clause 49 of the Listing
Agreement is included in the Annual Report.
HUMAN RESOURCES
Company encourages a culture that develops and empowers people,
promotes team building and nurtures new ideas.
The Company''s recruitment practice ensures that suitable candidates
with merit are recruited and provided with the right opportunities to
grow within the organisation.
AUDITORS
M/s. D. P. Agarwal & Co., Chartered Accountants, Mumbai, Statutory
Auditors of the Company, hold office until the conclusion of ensuing
Annual General Meeting and being eligible offer themselves for
re-appointment. The Company has received letter from M/s. D. P.
Agarwal & Co. Chartered Accountants, Mumbai to the effect that their
reappointment if made would be within prescribed limits under Section
224 (IB) of the Companies Act, 1956. Members are requested to
re-appoint M/s. D. P. Agarwal & Co., Chartered Accountants, Mumbai, as
the Statutory Auditors of the Company and authorize the Board of
Directors to fix their remuneration.
COMMENTS ON AUDITORS'' REPORT:-
The notes referred to in the Auditors'' Report are self explanatory
and as such they do not call for any further explanation as required
under Section 217(3) of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
People are the backbone of our operations. It is a matter of great
satisfaction for your Company that our employees have been very
supportive of your Company''s plan. By far the employee''s relations
have been cordial throughout the year.
There is no information as required pursuant to the provisions of
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particular of Employees) Amendments Rules, 1988 to be reported.
PARTICULARS UNDER SECTION 217 (1) (E) OF THE COMPANIES ACT, 1956
Further, pursuant to the provisions of Section 217(l)(e) of the
Companies Act, 1956 read with the Companies (Disclosure of particulars
in the Report of Board of Directors) Rules 1988, there is no material
information regarding conservation of energy, technology absorption,
foreign exchange earnings and out go concerning your Company to be
reported.
Your Company has taken the necessary steps to conserve energy, absorb
upgraded technology where ever necessary. However there is no material
information required under Section 217(l)(e) of the Companies Act, 1956
read with the Companies (Disclosure of particulars in the Report of
Board of Directors) Rules 1988 to be reported.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000
the Directors confirm that:
1. In the preparation of the annuals accounts, for the year ended
March 31 2012, all the applicable accounting standards prescribed by
the Institute of Chartered Accountants of India have been followed;
2. The Directors had adopted such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
your Company at the end of the financial year and of the profit of the
Company for that period
3. The Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
4. The Directors had prepared the annual accounts on a going concern
basis.
APPRECIATION
The Board of Directors wishes to convey their appreciation to all your
Company''s employees for their performance and continued support. The
Directors would also like to thank all the Shareholders, Consultants,
Customers, Vendors, Bankers, Service Providers, & Government and
Statutory Authorities for their continued support.
Place: Mumbai For and on behalf of the Board
Date: September 2, 2012 For SVC Resources Limited
Registered Office:
104, Baba House, 1st Floor, Sd/-
M.V. Road, Near Cine Magic Cinema, Ashok Gupta
Andheri (E), Mumbai - 400093 Chairman & Managing Director
Mar 31, 2011
To the Members,
The Directors have pleasure in presenting the 35th Annual Report of
your Company together with the Audited Statements of Accounts for the
year ended March 31, 2011.
(Rs. in Lacs)
Financial Results Year Ended Year Ended
31.03.2011 31.03.2010
Income 573.87 1,448.14
Profit before Tax 261.32 231.18
Less : Provision for Taxation 90.93 86.56
Profit after Tax 170.39 144.62
Add: Profit brought foward from
Previous Year 249.40 104.78
Balance carried forward 419.79 249.40
DIVIDEND
With a view to conserve the financial resources, no dividend has been
recommended for the year under review.
AUTHORISED SHARE CAPITAL
The Company increased it Authorised Share Capital twice during the year
under review.
The members of the Company approved the increase in the Authorised
Share Capital from 7 Crores to 11 Crores on December 20, 2010
The approval of the members was once again sought for the increase in
the Authorised Share Capital from 11 Crores to 15 Crores on March 10,
2011
SPLIT
The Equity Shares of your company were subdivided in the ratio of 2:1
i.e. 2 Equity shares of Rs.1/- each for every 1 Equity share of Rs. 2/-
each the record date for the said sub-division being December 30, 2010.
BONUS
The Board of Directors of the Company ("the Board") at its meeting held
on January 31, 2011 had recommended issue of bonus shares in the ratio
of 1:3 i.e. One new fully paid-up Equity Share of Re.1/- each for every
3 shares held by the shareholders as on the record date for the said
Bonus issue being March 22, 2011.
REGISTERED OFFICE
The Registered Office of the Company has shifted from 518, Sagar Tech
Plaza, A Wing, Saki Naka Jn., Andheri Kurla Road, Andheri East , Mumbai
400 072 to 104, Baba House, 1st Floor, M.V. Road, Near Cine Magic
Cinema, Andheri East, Mumbai - 400 093.
PERFORMANCE & CURRENT YEAR PROSPECTS
Your Company has diversified into mining and is in the activities of
mining of iron ore and trading in minerals.
During the year under review the turnover of your Company was Rs.
573.87 Lacs and profit before tax was Rs. 261.32 lacs
The performance of your subsidiary company SVC Resources FZC, Sharjah,
engaged in the business of trading in minerals was remarkable during
the year under review. The consolidated turnover of the company was Rs.
3,100.55 Lakhs, while the consolidated net profit before tax was Rs.
454.99 Lakhs.
The Board of Directors and its Team of employees have put in full
efforts and performed excellently to sustain profitability of your
Company.
BUSINESS SEGMENT
Your Company primarily operates in the business segment of mining and
trading of iron ore, white earth, ochre, manganese, laterite etc. As
per the management's perspective, the risks and returns from its sales
do not materially vary geographically. The mines of your company are
located at Dhamki and Dilar in the state of Madhya Pradesh.
Your Company offers its services to customers through best industry
practices in mining.
RISK & CONCERNS
It is a well known fact that risk is an integral part of any business.
If these risks are properly managed, a company will have ample
opportunity to run smoothly and expand its activities. As a matter of
fact Enterprise Risk Management (ERM) is a process that covers the
entire organisation in which all the functions are involved to identify
and assess the various strategic, operational, social and economic
risks being faced by the company in its day to day activities and
thereafter determine the responses to either mitigate the risk or
eliminate the same.
Most of the companies in India now recognise ERM as a critical
management issue. This is apparent from the importance assigned to ERM
within the organisation and the resources being devoted to building ERM
capabilities.
Opportunities
1. Rapid domestic growth
2. Robust growth in transportation, infrastructure, power capacity
addition and packaging
3. Diversification into steel production
4. Exploration and mining opportunities in India and abroad for
extraction and trading of high value minerals
Threats
1. Domestic competition from established players
2. Change in government policies
3. Price volatility
4. Trade policy uncertainties
5. Environmental concerns
6. Cyclic nature of industry
The ever changing business environment necessitates continuous
monitoring, evaluation & management of significant risks faced by the
organization.
OVERVIEW
SVC Resources Limited is a Public Limited Company engaged in the
business of extraction, processing & sale of Ore and exploration &
development of mining assets.
Your company will continue to build capabilities and nurture a talent
pool with diverse skills set to deliver continuous results. Your
Company has also strengthened its presence in mining and trading of
minerals.
Your Company is geared up to meet market demands and delivery schedules
and is confident of increasing its share in the Indian market. The
management has worked steadily to make SVC a company that can deliver
sustained, high- quality growth.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
The Company's present internal control systems are commensurate with
its size. However, looking at the growth in the size of the Company and
its operations it is strengthening these systems further. The Company
places great emphasis on the maintenance of effective internal
controls, both from the point of view of compliance with statutory
requirements as well as supporting the smooth and efficient running of
the business.
MATERIAL DEVELOPMENT IN HUMAN RESOURCES
The employees of your Company are dedicated and loyal to your Company.
Though there has been attrition in certain disciplines, the employees
in general have remained with your Company through thick and thin. On
the part of the Management, it is ensuring all-round comfort levels to
its employees, including the required training at all levels based on
the need. It is worth highlighting that industrial relations have been
cordial all along. Any difference is sorted out through discussions at
appropriate levels. The support of workmen needs special mention. The
employees of your Company are exposed to Mining Industry. Your
Company's diversification project needs people with specific skill and
knowledge in other industries viz. upgradation of skills for operating
equipment with latest technology. In order to get people with requisite
knowledge and skills, your Company has to train /retrain its existing
manpower and also to go for fresh induction.
Subsidiary
Your Company has only one overseas subsidiary SVC Resources FZC,
Sharjah, UAE
PUBLIC DEPOSITS
The Company has neither invited nor accepted any public deposits,
during the year, under Section 58A of the Companies Act, 1956 and, as
such, no amount on account of principal or interest on public deposits
was outstanding as on the date of the Balance Sheet.
DIRECTORS
During the year under review there has been no change in the Board of
Directors of your Company.
In accordance with the provisions of the Companies Act, 1956 and
pursuant to the provisions of Articles of Association of your Company
Mr. Vishal Singh, Dr. Mukesh Arora, Mr. R.K.Tiwari and Mr. Rajesh
Kapoor are liable to retire by rotation and being eligible, offer
themselves for re-appointment in the forthcoming Annual General
Meeting.
Further, none of the Directors of your Company are disqualified under
Section 274(1)(g) of the Companies Act 1956.
CORPORATE GOVERNANCE
Your Company follows the principles of effective corporate governance
practices. Clause 49 of Listing Agreement deals with Corporate
Governance requirements which has been complied by your company.
A separate section on Corporate Governance forming part of the
Directors' Report and the certificate from your Company's Auditors on
Corporate Governance as stipulated in Clause 49 of the Listing
Agreement is included in the Annual Report.
HUMAN RESOURCES
Company encourages a culture that develops and empowers people,
promotes team building and nurtures new ideas. The Company's
recruitment practice ensures that suitable candidates with merit are
recruited and provided with the right opportunities to grow within the
organisation.
AUDITORS
M/s. Prem Mishra & Co., Chartered Accountants, New Delhi, Statutory
Auditors of the Company, hold office until the conclusion of ensuing
Annual General Meeting and being eligible offer themselves for
re-appointment. The Company has received letter from M/s. Prem Mishra &
Co., Chartered Accountants, New Delhi to the effect that their re-
appointment if made would be within prescribed limits under Section 224
(1B) of the Companies Act, 1956. Members are requested to re-appoint
M/s. Prem Mishra & Co., Chartered Accountants, New Delhi, as the
Statutory Auditors of the Company and authorise the Board of Directors
to fix their remuneration.
COMMENTS ON AUDITORS' REPORT:
The notes referred to in the Auditors' Report are self explanatory and
as such they do not call for any further explanation as required under
Section 217(3) of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
People are the backbone of our operations. It is a matter of great
satisfaction for your Company that our employees have been very
supportive of your Company's plan. By far the employee's relations have
been cordial throughout the year.
There is no information as required pursuant to the provisions of
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particular of Employees) Amendments Rules, 1988 to be reported.
PARTICULARS UNDER SECTION 217 (1) (E) OF THE COMPANIES ACT, 1956
Further, pursuant to the provisions of Section 217(1)(e) of the
Companies Act, 1956 read with the Companies (Disclosure of particulars
in the Report of Board of Directors) Rules 1988, there is no material
information regarding conservation of energy, technology absorption,
foreign exchange earnings and out go concerning your Company to be
reported.
Your Company has taken the necessary steps to conserve energy, absorb
upgraded technology where ever necessary. However there is no material
information required under Section 217(1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of particulars in the Report of
Board of Directors) Rules 1988 to be reported.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000
the Directors confirm that:
1. In the preparation of the annuals accounts, for the year ended
March 31 2011, all the applicable accounting standards prescribed by
the Institute of Chartered Accountants of India have been followed;
2. The Directors had adopted such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
your Company at the end of the financial year and of the profit of the
Company for that period.
3. The Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
4. The Directors had prepared the annual accounts on a going concern
basis.
APPRECIATION
The Board of Directors wishes to convey their appreciation to all your
Company's employees for their performance and continued support. The
Directors would also like to thank all the Shareholders, Consultants,
Customers, Vendors, Bankers, Service Providers, and Government and
Statutory Authorities for their continued support.
Place: Mumbai For and on behalf of the Board
Date: September 2, 2011 For SVC Resources Limited
Registered Office:
104, Baba House, 1st Floor,
M.V. Road, Near Cine Magic Cinema, Ashok Gupta
Andheri (E), Mumbai - 400093 Chairman & Managing Director
Mar 31, 2010
The Directors have pleasure in presenting the 34th Annual Report of
your Company together with the Audited Statements of Accounts for
the year ended March 31, 2010.
(Rs. in Lacs)
Financial Results Year Ended Year Ended
31.03.2010 31.03.2009
Income 1448.14 26.71
Profit before Tax 231.18 22.236
Less Provision for Taxation 86.56 7.08
Profit after Tax 144.62 15.28
Add : Profit brought forward
from Previous Year 104.78 89.50
Balance carried forward 249.40 104.78
DIVIDEND
With a view to conserve resources for future operations, your Directors
do not recommend any dividend for the financial year ended March 31,
2010.
PERFORMANCE & CURRENT YEAR PROSPECTS
During the year under review, the operations of your Company have been
streamlined. Your Company will continue to maintain these levels of
operations and is fairly optimistic about contributing to SVCs growth
plans in 2010-11.
Your company changed its name from Pace Textiles Limited to SVC
Resources Limited. Your Company has diversified into mining and is in
the activities of manufacturing & trading of Textiles products and
mining of iron ore and trading in minerals. Due to recession companys
performance was not up to the mark however due to diversification into
mining industry your company could perform better than the previous
year.
The slow down in global economy has not only affected the business of
the Company but also the entire market of textile goods as well as the
mining segment, which is still continuing. The lack of demand forced
the Company to cut down prices of its products and tough competition
has again worsened the situation.
The Board of Directors and its team of employees have put in full
efforts and performed excellently to sustain profitability of the
Company
BUSINESS SEGMENT
Your Company primarily operates in the business segment of mining and
trading of iron ore, white earth, ochre, manganese, laterite etc and
manufacturing & trading of textiles products. As per the managements
perspective, the risks and returns from its sales do not materially
vary geographically. The mines of your company are located at
Kodamukur, Dhamki and Dilari in the state of Madhya Pradesh.
Your Company offers its services to customers through best industry
practices in textile and mining.
RISK & CONCERNS
Opportunities
- Diversification into steel production
- Financial powers for investment in new projects.
- Exploration and mining opportunities in India and abroad for high
value minerals.
- Diversification into other areas for sustained growth.
Threats
- Intense competition from private sector in securing fresh mining
leases, resulting in denial of leases in many cases and litigation
delaying actions.
- Entry of MNCs and other Indian private companies into mining.
- The industry being cyclic in nature, company is exposed to sharp
fluctuations in demand for its products.
- Your Company faces risks in respect of high inventory of stocks and
its disposal.
The ever changing business environment necessitates continuous
monitoring, evaluation & management of significant risks faced by the
organization.
OVERVIEW
Your company will continue to build capabilities and nurture a talent
pool with diverse skills sets to deliver continuous results. Your
Company has also strengthened its presence in textile industry with
improved quality and variety of its products as well as diversified
into mining and trading of minerals. Your Company is geared up to meet
market demands and delivery schedules and is confident of increasing
its share in the global market. We have worked steadily to make SVC a
company that can deliver sustained, high-quality growth.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
SVC has put in place all the necessary internal controls and they are
found quite adequate.
Your companys internal control procedures are tailored to match the
organizations pace of growth and increasing complexity of operations.
These ensure compliance with various policies, practices, regulations
and statutes. The internal control systems are regularly checked by
both statutory and internal auditors.
There is an adequate internal control system commensurate with the size
of your Company and the nature of its business, with regard to purchase
of inventory and fixed assets and for the sale of goods and services.
During the course of our audit, no major weakness has been noticed in
the internal controls.
There are documented and well established operating procedures in your
Company and its subsidiaries in India & overseas. The Finance function
of your Company is also adequately staffed with professionally
qualified and experienced personnel.
The Companys well defined organizational structure, documented policy
guidelines and adequate internal controls ensure efficiency of
operations, compliance with internal policies and applicable laws and
regulations, protection of resources and assets, and accurate reporting
of financialTransactions. Moreover, your Company continuously upgrades
these systems in line with the best available practices.
The internal control system is supplemented by extensive internal
audits, conducted by independent firms of Chartered Accountants so as
to cover various operations on a continuous basis.
MATERIAL DEVELOPMENT IN HUMAN RESOURCES
Your Companys industrial relations continued to be harmonious during
the year under review.
The employees of your Company have been dedicated and loyal to your
Company Though there has been attrition in certain disciplines, the
employees in general have remained with your Company through thick and
thin. On the part of the Management, it is ensuring all-round comfort
levels to its employees, including the required training at all levels
based on the need. It is worth highlighting that industrial relation
has been cordial all along. Any difference is sorted out through
discussions at appropriate levels. The support of workmen needs special
mention. The employees of your Company are exposed to Textile and
Mining Industry. Your Companys diversification project needs people
with specific skill and knowledge in other industries viz. up gradation
of skills for operating equipment with latest technology. In order to
get people with requisite knowledge and skills, your Company has to
train /retrain its existing manpower and also to go for fresh
induction.
Subsidiary
Your Company is in the process of acquiring / setting up following
subsidiaries
Indian Subsidiaries
Terra Mining & Mineral Industries Pvt Ltd.
Terra Reserves Determination Technologies Pvt. Ltd.
Terra Soft Solutions Pvt. Ltd.
Overseas Subsidiary
SVC Resources FZC , Sharjah UAE.
Step down subsidiaries
SVC Gold DMCC, Dubai.
SVC Minerals DMCC, Dubai.
Terra Nova Overseas Resources FZC, Hamriya, UAE.
No activities have been started by the Subsidiary Companies for the
financial year 2009-2010 and some of the subsidiaries have been
acquired /setup subsequent to the end of the year, hence statement
under section 212 is not required to be annexed.
PUBLIC DEPOSITS
During the year under review, your Company has not accepted any
deposits from the public within the meaning of section 58A of the
Companies Act 1956 and the rules there under.
DIRECTORS
During the year under review your Company through Postal Ballot
approved the change in the Management and the names of the new
directors are as follows:
Sr.
No. Names Designation
1 A shok Gupta Chairman & Managing Director
2 Vishal Kumar Singh Joint Managing Director
3 Sunil Jain Whole Time Director
4 Dr. Mukesh Arora Whole Time Director
5 R. K. Tiwari Whole Time Director
6 Vinay Poddar Director
7 Chandra Sen Independent Director
8 Dattatray Sakhalkar Independent Director
9 Rajesh Kapoor Independent Director
10 Dr. Ashish Lodge Independent Director
11 Ashish Jain Independent Director
12 Vinod Bansal Independent Director
In accordance with the provisions of the Companies Act, 1956 and
pursuant to the provisions of Articles of Association of your Company
Mr. Vinod Bansal, Mr. Vinay Poddar, Mr. Ashok Gupta and Mr. Sunil Jain
are liable to retire by rotation and being eligible, offer themselves
for re-appointments in the forthcoming Annual General Meeting.
Further, none of the Directors of your Company are disqualified under
section 274(1)(g) of the Companies Act,1956.
CORPORATE GOVERNANCE
Your Company follows the principles of effective corporate governance
practices. Clause 49 of Listing Agreement deals with Corporate
Governance requirements which has been complied by your company.
A separate section on Corporate Governance forming part of the
Directors Report and the certificate from your Companys Auditors on
Corporate Governance as stipulated in Clause 49 of the Listing
Agreement is included in the Annual Report.
HUMAN RESOURCES
Human Resources have always been most valuable asset for SVC and the
Company constantly seeks to attract and retain the best available
talent. Human Resource management incorporates a process driven
approach that invests regularly in the training and development needs
of its employees through succession planning, job rotation, on the job
training and extensive training workshops & programmes. During the
year, the leadership and management in the back end functions was
further strengthened with the joining of senior and highly experienced
industry persons.
AUDITORS
The term of the Auditor M/s. Jain Anil & Associates, Chartered
Accountants, Mumbai expires in the ensuing Annual General Meeting and
they have expressed their intention not to seek re-appointment.
The Board has recommended M/s. Prem Mishra & Co., Chartered Accountants
as new Statutory Auditors of the Company.
Members are requested to approve their appointment.
Members are requested to appoint Auditors and authorize the Board of
Directors to fix their remuneration.
COMMENTS ON AUDITORS REPORT:
The notes referred to in the Auditors Report are self explanatory and
as such they do not call for any further explanation as required under
section 217(3) of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
People are the backbone of our operations. It is a matter of great
satisfaction for your Company that our employees have been very
supportive to the Companys plan. By far the employees relations have
been cordial throughout the year.
There is no information as required pursuant to the provisions of
section 217(2A) of the Companies Act, 1956 read with the companies
(Particular of employees) amendments rules, 1988 to be reported.
PARTICULARS UNDER SECTION 217 (1) (E) OF THE COMPANIES ACT, 1956
Further, pursuant to the provisions of Section 217(1)(e) of the
Companies Act, 1956 read with the Companies (Disclosure of particulars
in the Report of Board of Directors) Rules 1988, there is no material
information regarding conservation of energy, technology absorption,
foreign exchange earnings and out go concerning your Company to be
reported.
Your Company has taken the necessary steps to conserve energy, absorb
upgraded technology whereever necessary. However there is no material
information required under section 217(1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of particulars in the Report of
Board of Directors) Rules 1988 to be reported.
Your Company has not earned or used foreign exchange earnings/outgoings
during the year under review.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000
the Directors confirm that:
1. In the preparation of the annuals accounts, for the year ended
March 31, 2010, all the applicable accounting standards prescribed by
the Institute of Chartered Accountants of India have been followed.
2. The Directors had adopted such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
your Company at the end of the financial year and of the profit of the
Company for that period.
3. The Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
4. The Directors had prepared the annual accounts on a going concern
basis.
APPRECIATION
The Board of Directors wishes to convey their appreciation to all your
Companys employees for their performance and continued support. The
Directors would also like to thank all the Shareholders, Consultants,
Customers, Vendors, Bankers, Service Providers, and Governmental and
Statutory Authorities for their continued support.
Place: Mumbai By order of the Board
Date: July 31, 2010 For SVC RESOURCES LIMITED
Registered Office:
518, Sagar Tech Plaza,
Sd/-
Wing, Saki Naka Jn., ASHOK GUPTA
Andheri Kurla Road,
Chairman & Managing Director
Andheri East, Mumbai 400072.
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