silicon rental solutions ltd share price Management discussions


1. PRIMARY BUSINESS OF THE COMPANY

Our Company was incorporated as ‘Silicon Rental Solutions Private Limited under the Companies Act, 2013, pursuant to a certificate of incorporation dated January 28, 2016, issued by the RoC, Mumbai having CIN as U74999MH2016PTC272442. Thereafter, our Company was converted from a private limited company to a public limited company, pursuant to a special resolution passed by the shareholders of our Company on July 06, 2022 and the name of the Company was changed from "Silicon Rental Solutions Private Limited" to "Silicon Rental Solutions Limited" vide fresh certificate of incorporation dated July 22, 2022 issued by the RoC, Mumbai. The Corporate identification number of our Company is U74999MH2016PLC272442.

Our Company is an IT equipment outsourcing company, engaged in providing end to end IT equipments on a rental and returnable basis in India. We provide laptops, desktops, printers, servers and other peripherals like CCTV cameras, projectors, storage devices etc. on rental basis mainly to small, medium and large corporate. Based on the clients IT requirements, we offer them tailor-made rental schemes that suit their requirements. By providing the IT rental services to our customers, we provide them with the flexibility and advantage to acquire the requisite equipments that they need to maximize their productivity without compromising their IT budget. In addition, we also sell the used IT equipments to clients as per their requirements.

2. INDUSTRY IN WHICH OUR COMPANY OPERATES

The IT industry accounted for 8% of Indias GDP in 2020. Indias IT industry is expected to contribute 10% to India GDP by 2025. The computer software and hardware sector in India attracted cumulative foreign direct investment (FDI) inflows worth US$ 81.31 billion between April 2000-December 2021. According to the National Association of Software and Service Companies (Nasscom), the Indian IT industrys revenue is expected to touch US$ 227 billion in FY22 from US$ 196 billion in FY21.

3. COMPETITIVE STRENGTHS

1. Wide range of o erings with capability to provide customized and integrated IT Solutions i) Cost e ective & integrated o erings ii) Broad range of high ended & latest models products including laptops, desktops, printers, servers etc. including used IT equipments iii) Availability of all major brands like HP, Dell, Lenovo, Apple, Asus, Intel, AMD, Gigabyte, Sonicwall, Dlink, Cisco. iv) Flexible Tailor-made rental schemes as per Customer requirements to acquire the requisite equipment.

2. Wide presence in domestic Market with diverse base of customers i) Serving clients across various industries & sectors including the logistics solutions, BPO, pharmaceuticals, e-commerce, education, IT, insurance, research, media & entertainment, etc. ii) In F.Y. 22, served over 275+ clients in India located at over 16 states and 3 Union Territories of India.

3. Experienced management & operational team i) Quali ed and experienced management having experience in di erent aspects of IT hardware industry ii) Right Personnel recruitment and training initiatives help drive employee loyalty, retention and quality assurance

4. Strong relationship with customers i) Customize d o erings to customers as per their speci cations & requirements, ii) Track record of consistent delivery of quality andcost-e ective services over the years. iii) Support maximization of productivity without compromising on the IT budget

4. GROWTH STRATEGIES

1. Continue to expand customer base i) Focus on maintaining long standing relationship with existing customers ii) Focus on the expansion of the customer base

2. Continue to focus on expending presence in the Tier 2 and Tier 3 cities i) Large and small corporate house have started expending their businesses in these cities. ii) Leverage expertise to customized services in various Tier 1, Tier2, and Tier 3 cities in India. iii) Build capabilities across semi- urban markets in India to cater to the growing demands for IT renting services in these marketing driven by the growth in these areas economic development in the tier 2 and Tier 3 cities, large.

3. Continue to focus on emerging technologies i) Regularly track new, latest technologies and market trends in the IT market. ii) Upgradation of existing equipments to better serve our clients.

4. Optimal Utilisation of Resources i) Constantly endeavour to improve technical process to increase service activates

5. Marketing Strategies: i) Focus on providing one stop solution for all IT hardware needs ii) Focus on requirement of Customers iii) Emphasizing on Services with value addition iv) Continuous update of Systems and solutions o ered v) Timely service and support to gain customer con dence.

INTERNAL FINANCIAL CONTROL SYSTEM

The Company has robust and comprehensive Internal Financial Control system commensurate with the size scale and complexity of its operations. The system encompasses the major processes to ensure reliability of financial reporting, compliance with policies, procedures, laws, and regulations, safeguarding of assets and economical and efficient use of resources.

The policies and procedures adopted by the company to ensures the orderly and efficient conduct of its business and adherence to the companys policies, prevention and detection of frauds and errors, accuracy and completeness of the records and the timely preparation of reliable financial information.

The Internal Auditors and the Management continuously monitors the efficacy of Internal Financial Control system with the objective of providing to the Audit Committee and the Board of Directors, an effectiveness of the organizations risk management with regard to the Internal Financial Control system.

Audit Committee meets regularly to review reports submitted by the internal auditors. The Audit Committee also meet the Companys Statutory Auditors to ascertain their views on the financial statement, including the financial reporting system and compliance to accounting policies and procedures followed by the Company.

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respect with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention.

FINANCIAL PERFORMANCE AND ANALYSIS

The Company has reported total revenue of Rs. 3,629.62 Lakhs for the current year as compared to Rs. 2460.94 Lakhs in the previous year. The Net Profit for the year under review amounted to Rs. 1067.36 Lakhs in the current year as compared to Profit incurred in last year amounting Rs. 1020.60 Lakhs.

DISCLOSURES

During the year the Company has not entered into any transaction of material nature with its promoters, the Directors or the management, their subsidiaries or relatives etc. that may have potential conflict with the interest of the Company at large.

Pursuant to the requirements of Regulation 33(2) of SEBI (Listing Obligations and Disclosure Requirements), 2015, I, Kanchan Sanjay Motiani, Chief Financial Officer, of the Company, certify that: A. We have reviewed financial statements and the cash flow statement for the year ended March 31, 2023 and that to the best of our knowledge and belief:

(1) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

(2) these statements together present a true and fair view of the listed entity‘s affairs and are in compliance with existing accounting standards, applicable laws and regulations.

B. There are, to the best of our knowledge and belief, no transactions entered into by the listed entity during the year which are fraudulent, illegal or violative of the listed entity‘s code of conduct.

C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and we have disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.

D. We have indicated to the auditors and the Audit committee

(1) significant changes in internal control over financial reporting during the year;

(2) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements; and

(3) instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the listed entitys internal control system over financial reporting.

May 30, 2023 Kanchan Sanjay Motiani
Mumbai Chief Financial Officer

DECLARATION

I hereby confirm that the Company has received from all the members of the Board and Senior Management, for the financial year ended March 31, 2023, a confirmation that they are in compliance with the Companys Code of Conduct.

SD/-
May 30, 2023 Kanchan Sanjay Motiani
Mumbai Chief Financial Officer