Silicon Valley Infotech Ltd has launched a capital reduction process under Section 66 of the Companies Act to eliminate accumulated losses and stabilize finances. The move follows a challenging FY 2025-26 where the company reported a net loss. The firm is also working to address auditor qualifications regarding Net Owned Funds compliance and is seeking to revoke a trading suspension on the Calcutta Stock Exchange.
Silicon Valley Infotech Targets Financial Stability with Capital Reduction
Net Loss for FY 2025-26 stood at Rs 0.00446 crore against a profit of Rs 0.00001 crore in FY 2024-25.
Total Revenue for FY 2025-26 reached Rs 0.0003 crore, showing marginal growth from Rs 0.0002 crore in the previous year.
Reader Takeaway: Management is reducing share capital to improve stability; however, unresolved regulatory compliance issues regarding Net Owned Funds remain.
What just happened
Silicon Valley Infotech has commenced a formal process to reduce its paid-up equity share capital. Approved by shareholders at an EGM held on March 9, 2026, the strategy aims to consolidate share capital and write off accumulated losses. The process is now pending approval from the National Company Law Tribunal (Kolkata Bench) and other relevant regulatory bodies.
Why this matters
Investors are witnessing a structural effort to clean up the balance sheet. As an NBFC engaged in financing and investments, the company faces pressure to meet statutory Net Owned Funds (NOF) requirements. An auditor qualification highlighted a failure to meet these norms as of March 31, 2026, making the success of this financial restructuring critical for long-term viability.
Listing and Compliance
Trading in the company's shares remains suspended on The Calcutta Stock Exchange. The company claims it has received no official communication regarding the cause of the suspension and is actively seeking revocation. Furthermore, auditors have flagged that the company's website requires updates and technical hurdles in the MCA database have hindered the verification of certain mandatory e-filings.
Risks to watch
Regulatory risks persist, specifically regarding the NCLT approval process for capital reduction. Investors should also track the company's progress on meeting NOF compliance standards, which is a core regulatory expectation for NBFCs. The lack of clarity surrounding the Calcutta Stock Exchange suspension adds an layer of uncertainty for shareholders.
What to track next
Watch for updates on NCLT hearing dates and any official communication from the Calcutta Stock Exchange regarding the status of the trading suspension.