Silveroak Comm Management Discussions


Your Directors have the pleasure in presenting the first Management Discussion and Analysis Report for the year ended March 31, 2019

ECONOMIC OVERVIEW:

Overall political stability in India will open new opportunities for various sectors of industries.

INDUSTRY STRUCTURE AND DEVELOPMENT

Infrastructure boost given by the new Government in the form of policy decisions will bring many opportunities to the infrastructural sector and allied sector. Your Company also looks forward to grab this advantage and explore new opportunities in construction material and electrical and electronics components.

OPPORTUNITIES, THREATS AND RISKS

Opportunities

The Company is very much hopeful to grab this opportunity and perform better and better in the years to come.

Threats:

Companys ability to bag good projects will depend on the Quality of the employees that the Company has and as human resource is very difficult to retain, the Company has threat to expand business in new areas. Further, also failure of commitments and hopes from the new Government may also affect the businesses.

SEGMENTWISE PERFORMANCE

The Company has currently only one segment (Viz Construction and related trades) in line with the Accounting Standard on Segment Reporting (Ind AS) accordingly; there are no separate reportable segments.

APPOINTMENT OF INTERIM RESOLUTION PROFESSIONAL AND RESOLTION PROFESSIONAL BY NATIONAL COMPANY LAW TRIBUNAL IN MATTER OF ULTRATECH CEMENT LTD, MUMBAI (PETITIONER) V/S SILVEROAK COMMERCIALS LIMITED, NASHIK (CORPORATE DEBTOR)

The NCLT (Mumbai Bench) has passed order on 01.05.2019 to appoint Interim Resolution Professional MrRajendraKhadelwal under section 9 of IBC Act 2016. in matter of Ultratech Cement Ltd Mumbai (Petitioner) V/s Silveroak Commercials Limited Nashik(Corporate Debtor),

Further NCLT has passed order on 19.08.2019 to replace the Interim Resolution Professional to Resolution Professional, In the meeting of Creditors resolution was approved for replacement of IRPMrRajendraKhandelwal is replaced with Mr. AlkeshRawka as Resolution Professional.

INTERNAL CONTROL SYSTEM & THEIR ADEQUACY

The company has adequate internal control system commensurate with the size. The committee reviews the implementation of management policies to ensure that transaction has been accurately recorded and promptly reported. Also in terms of the provisions of the Companies Act 2013, the Company is in the process of appointing Internal Auditors for the Company.

OUTLOOK

There is expected to be good demand for raw materials in pharmaceutical, agro product and chemical sectors as massive investments have been planned by industry majors.

HUMAN RESOUCES & INDUSTRIAL RELATION

The company has harmonious relation with its employees. There is continuous emphasis on development of human resources through training. The issues with employees, if any, are resolved in harmonious and cordial manner.

LISTING AGREEMENTS REQUIREMENTS:

The securities of your company are listed at BSE Limited. The Company has not paid listing fees for the year 2018-19.

WHISTLE BLOWER POLICY

The company does not have any Whistle Blower Policy as of now but no personnel are being denied any access to the Audit Committee.

CODE OF CONDUCT

The Board has laid down a code of conduct for all the Board Members and Senior Management of the company. All the Board Members and Senior Management Personnel have affirmed compliance with the Code on an annual basis.

SECRETARIAL AUDIT

A Qualified Practicing Company Secretary has carried out a secretarial audit of the total issued capital and listed capital. The secretarial audit report confirms that the total issued / paid up capital are in agreement with the total number of shares in Demat and physical form.

FORWARD LOOKING AND CAUTIONARY STATEMENTS:

The statement in the management discussion and analysis reports describing company objective, projections, estimates, expectation may be "Forward looking statements" within meaning of applicable securities law and regulations are based upon the information and data available with the company assumptions with regard to global economic conditions the government regulations, tax laws other status policies and incidental factors. The company cannot guarantee the accuracy of assumption and perceived performance of the company in future. Hence, it is cautioned that the result may differ from those expressed or implied in this report.

COMPANY PERFORMANCE

During the year, your Company earned total income of Rs. 4,61,71,539/- as compared to Rs 13,87,97,157/- in previous year and gained a lossbefore exceptional items of Rs.(7,67,41,695)/- as compared to Rs.25,52,035/- in previous year and Net Profit / (Loss) during the year (7,83,34,078)/- as compared to Rs.20,22,818/- in previous year.

OPERATIONS OF THE COMPANY

The business activities of the Company comprises mainly manufacturing of electrical products like power distribution boxes, electrical panels & enclosures, etc.;fabricated sheet metal products, like containers as per customer specifications; contract manufacturing job work for electrical products like capacitors; civil construction works of buildings, etc.

HUMAN RESOURCES

As on 31 March 2019, the Company has 34numbers of employees on its roll, including the Executive Director.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control systems to ensure operational efficiency, accuracy and promptness in financial reporting and compliance of various laws and regulations.

The internal control system is supported by the internal audit process. An Internal Auditor has been appointed for this purpose. The Audit Committee of the Board reviews the Internal Audit Report and the adequacy and effectiveness of internal controls periodically.

CAUTIONARY STATEMENT

Statements in this Report, particularly those which relate to Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.