SBEC Systems (India) Limited has addressed recent compliance issues by paying fines imposed by the Bombay Stock Exchange (BSE) for violations of SEBI listing regulations. The company faced penalties for multiple infractions, including late submissions and non-compliance with disclosure requirements.

Compliance Violations and Fines

The BSE identified several areas of non-compliance:

1. Shareholding Pattern Submission (Regulation 31): SBEC Systems failed to submit shareholding patterns within the prescribed period for a specific quarter. This violation incurred a fine of Rs. 2,000.00 per day.

2. Board Meeting Intimations (Regulation 29(2)/29(3)): The company was penalized for delays in furnishing prior intimation about board meetings.

3. Voting Results Submission (Regulation 44(3)): SBEC Systems failed to submit voting results within the stipulated timeframe.

The total fine imposed, including 18% GST, amounted to Rs. 22,360.00.

Company's Response

The Board of Directors of SBEC Systems has taken note of these non-compliance issues. In a statement, the company acknowledged the violations and committed to ensuring future adherence to SEBI regulations. The fines have been paid within the prescribed timeline to avoid further penalties.

Potential Consequences

The BSE has warned that continued non-compliance could result in more severe actions, including:

• Freezing of the entire shareholding of the promoter in the entity
• Potential transfer to the Z group (a category for non-compliant companies)
• Possible suspension of trading of the company's equity shares

Other Corporate Developments

In addition to addressing these compliance issues, SBEC Systems has reported several other corporate developments:

1. The company has filed a Capital Reduction Scheme with the National Company Law Tribunal (NCLT) in New Delhi. The matter is currently adjourned pending a report from the Registrar of Companies (ROC).

2. SBEC Systems is involved in an ongoing dispute related to a SEBI order concerning the promoter group of SBEC Sugar Limited. As per a Supreme Court order, the company made a public announcement to acquire shares of the target company.

3. The company has reported unaudited financial results for a recent quarter and six-month period, which have been reviewed by the Audit Committee and approved by the Board of Directors.

These developments highlight the regulatory and corporate challenges SBEC Systems is currently navigating. The company's management has expressed its commitment to improving compliance and addressing ongoing legal and financial matters.

SBEC Systems (India) Limited , a technology services provider, has released its financial results for the second quarter and half-year ended September 30, revealing a mixed performance with increased revenue but a net loss for the quarter.

Financial Performance

For Q2, SBEC Systems reported:

• Revenue from operations increased to Rs 91.58 lakhs, up from Rs 74.85 lakhs in the previous quarter.
• A net loss of Rs 19.34 lakhs, compared to a profit of Rs 22.03 lakhs in Q1.
• Total income, including other income, stood at Rs 113.50 lakhs.

For the half-year ended September 30:

• The company posted a net profit of Rs 2.69 lakhs.
• Total income reached Rs 208.48 lakhs.

Segment-wise Performance

SBEC Systems operates in two primary segments:

1. Technical Services/Consultancy Services
2. Solar Power Generation

The Technical Services segment reported a loss of Rs 42.06 lakhs for Q2, while the Solar Power Generation unit contributed a profit of Rs 22.72 lakhs.

Corporate Governance and Compliance

The Board of Directors, in their meeting held on November 12, addressed several key points:

1. Approved the unaudited financial results for Q2 and H1.
2. Noted the cessation of Mr. Jagdish Chander Chawla from the post of Independent Director, effective September 22, due to completion of his tenure.
3. Acknowledged an advisory letter from BSE regarding non-compliance under SEBI LODR Regulations, 2015.

The company has committed to exercising greater due diligence to ensure prompt compliance and avoid future regulatory issues.

Capital Reduction Scheme

SBEC Systems is currently pursuing a Scheme of Selective Capital Reduction, which was approved by the Board on June 26, 2023. Key updates include:

• BSE issued a 'no adverse observations' letter on July 24, 2024.
• Shareholders approved the scheme via Special Resolution at the 35th Annual General Meeting on September 28, 2024.
• The matter is pending before the National Company Law Tribunal (NCLT), with the next hearing scheduled for November 17.

Regulatory Compliance

The company addressed a fine levied by BSE for non-compliance with Regulation 31 of SEBI LODR Regulations. The Board has assured that:

• The fine has been paid within the prescribed timeline.
• Measures will be taken to ensure due attention to all SEBI (LODR) compliances in the future.

Looking Ahead

While SBEC Systems faces challenges in its technical services segment, the solar power generation unit shows promise. The company's focus on regulatory compliance and the ongoing capital reduction scheme may impact its future financial structure and operations.

Investors and stakeholders should monitor the progress of the capital reduction scheme and the company's efforts to improve compliance with regulatory requirements.