1 Annual Report 2013-14
1 Annual Report 2013-14
1 Annual Report 2013-14
CONTENTS
Page Nos.
Company Information 4
Balance Sheet 55
Balance Sheet 85
BOARD OF DIRECTORS
Mr. Vikas Garg Managing Director
Mr. Vivek Garg Whole Time Director
Mr. Purushottam Dass Bhoot Director
Mr. Pradip Kumar Banerji Director
Mr. Jagdish Capoor Director
Mr. Sumer Chand Tayal Director
Mr. Manoj Singhal Director
Mr. Ashutosh Verma Additional Director
Mr. Narender Kumar Garg Director
STATUTORY AUDITORS
M/s. RSPH & Associates, Chartered Accountants, 906, Vikram Tower, 16, Rajendra
Place, New Delhi -110008
INTERNAL AUDITORS
M/s. KSMS & Associates, G-5, Vikas House, 34/1, East Punjabi Bagh, New Delhi -110026
COST AUDITORS
M/s. C.B Gupta & Associates, G-23/6A, Third Floor, Rajouri Garden, New Delhi -110027
BANKERS
Oriental Bank of Commerce & Bank of Baroda
REGISTERED OFFICE
Vikas House, 34/1, East Punjabi Bagh, New Delhi- 110026
Email: [email protected], Website: www.vikasglobal.in
MANUFACTURING PLANTS
JAMMU & KASHMIR RAJASTHAN
Industrial Growth Centre, G-24-30, Vigyan Nagar,
Phase-I, SIDCO Complex RIICO Industrial Area, Shahjahanpur,
Dist. Samba-184121 Dist, Alwar-301706
Jammu & Kashmir Rajasthan
AUDIT COMMITTEE
EXECUTIVE COMMITTEE
COMPENSATION COMMITTEE
Special Business:
6. Appointment of Mr. Ashutosh Verma as a Director of the Company
To consider and, if thought fit, to pass with or without modification, if any, the following resolution
as an ORDINARY RESOLUTION:
“RESOLVED THAT Mr. Ashutosh Kumar Verma who was appointed by the Board of Directors as
Additional Director with effect from 6th August, 2014 and who holds office upto the date of this
Annual General Meeting of the Company, in terms of Section 161 of the Companies Act 2013, and in
respect of whom the company has received a notice in writing from the member under section 160 of
the Companies Act, 2013 proposing his candidature for the office of Director of the Company, be and
is hereby appointed as Director of the Company, liable to retirement by rotation.
RESOLVED FURTHER THAT the Mr. Vikas Garg, Managing Director of the company and Mr. Sunil
Malik, Company Secretary of the company, be and are hereby authorized, to do all such necessary
acts, as may be necessary to give effect to the above resolution.”
Sd/-
Vikas Garg Place: New Delhi
Managing Director Date: 6th August 2014
In view of the “Green Initiative” announced by Ministry of Corporate Affairs and circular issued by the
Securities and Exchange Board of India (SEBI), the Company will send all correspondence like
General Meeting Notices, Annual Reports and any other communications in future (hereinafter
referred as “documents”) in electronic form, in lieu of physical form, to all those shareholders, whose
email address is registered with Depository participant (DP)/ Registrar and Share Transfer Agent
(RTA)[herein after ‘registered e-mail address’for servicing documents including those covered under
section 219 of the Companies Act, 1956 [the Act] read with section 53 of the Act and Clause 32 of the
Listing agreement executed with the Stock Exchange.
Members holding equity shares in physical form are requested to update/ register their e-mail
addresses with the Company by sending a mail to [email protected] mentioning their name and
folio number.
As required under Section 102 of the Companies Act, 2013, the following explanatory statement sets out
the matter in relation to Item No. 6 of the accompanying notice dated 14th August 2013
ITEM NO. 6
The Board of Directors at its Meeting held on 6th August, 2014 appointed Mr. Ashutosh Verma as an
Additional Director, pursuant to Section 161 of the Companies Act, 2013. Mr. Ashutosh Verma will hold
office upto the date of forthcoming Annual General Meeting and is being eligible for appointment as a
Director. The Company has received a notice under Section 160 of the Companies Act, 2013, proposing
appointment of Mr. Ashutosh Verma, as Director of the Company.
Mr. Ashutosh Verma has a vast experience of over 34 years in the field of Plastics Raw Material and
Polymer Compounds. He spearhead into the Business Development and technical support to the
customers of VGL. His experience in the field of sales, marketing, business development, technical
services, sourcing of raw material, machinery and R&D had helped company to cross several milestone
in the journey towards being a truly world class organization and has registered a exponential growth
and consistently making profits.
He had widely travelled within India, Europe (France, Germany, Italy, Austria), US and Asia (Thailand,
Singapore, Malaysia, China, Taiwan, Korea, Japan, Hong Kong, Bangladesh) in connection with
business, developments and technical Seminars.
Before joining the company he was previously being associated with various renowned corporate like
KLJ Polymers and Chemicals Ltd. , Mulibase India Ltd., Sperry Plast Ltd. and Polychem Ltd.
He had dedicated his 20 years to compounding industry covering all aspects of running the industry like
production, purchase, sales/marketing, technical services, R&D and business developments. His
significant contribution results in 300-400% growth in last 3 organizations he had worked for in this
field.
Pursuant to Clause 49 (IV) (G) of the Listing Agreement of Stock Exchanges, the following information is
furnished in respect of the directors proposed to be appointed/re-appointed.
Mr. Vivek Garg was inducted earlier as the member of the Board of Directors in July, 2008. Since
joining the company he has contributed his knowledge and experience for promoting and strengthening
the business position of the company. He was re-appointed as executive Director of the Company with
effect from June, 2009
Mr. Purushottam Dass Bhoot is being associated with the company since July, 1994 and is being on
the Board of Directors as Independent & Non-Executive Director of the company. He is a 85 years Law
Graduate and Company Secretary.
Sd/-
Vikas Garg Place: New Delhi
Managing Director Date: 6th August 2014
To
The Members,
Vikas GlobalOne Limited
Your Directors have pleasure in presenting the 29th (Twenty Ninth) Annual Report of your Company and
Audited Statement of Accounts for the year ended 31st March, 2014.
FINANCIAL HIGHLIGTS:
The Company’s financial performance, for the year ended March 31, 2014 is summarized below :-
(Rupees in Lacs)
Particulars Vikas GlobalOne Limited Vikas GlobalOne
(Standalone) Limited (Consolidated)
2013-2014 2012-2013 2013-2014 2012-2013
Gross Income 17,159.09 15,808.07 25,284.17 25,418.38
Gross Expenditure 16,705.53 15,514.92 24,725.18 25,005.27
Share of Profit from Partnership firm/Minority
Interest 31.85 58.67 (10.62) (19.56)
Prior Period adjustments (net) (78.82) (0.26) (79.00) (0.58)
Net Profit before Tax 406.58 351.56 469.37 392.98
Provision for Taxation (49.16) (5.65) 77.04 (21.57)
Provision for Deferred Tax (1.18) (5.38) (1.80) (6.20)
Mat Credit Availed (27.81) 0 (27.81) 0
Provision for Taxation (earlier years) 4.03 1.75 (1.28) 1.64
Net Profit after Tax 332.46 342.28 361.44 366.85
Balance brought forward from previous year 1,972.21 1,688.64 2,051.07 1742.93
Profits available for appropriation 2,304.67 2,030.92 2,412.91 2,109.78
Proposed Dividend (50.85) (50.51) 50.85 (50.51)
Provision for Dividend Distribution Tax (8.64) (8.20) 8.64 (8.20)
Profits carried to Balance Sheet 2,245.18 1,972.21 2,353.02 2,051.07
FINANCIAL REVIEW:
The Company showed improvement in nearly all the spheres it operates in.
Turnover of the company for the Financial Year ended on 31st March 2014 was 16,923 Lacs as
compared to Rs. 15,679 Lacs for the Financial Year ended on 31st March 2013 registering a growth of
around 8 percent whereas the PAT was Rs. 342 Lacs for the FY 2012-13 as compared to Rs. 332 Lacs
for the FY 2013-14. The decrease in the profitability was due to following reason:-
The company was availing exemption under Minimum Alternative Tax benefits in the state of Jammu
and Kashmir which were withdrawn by the government during the current financial year. This has
affected both the revenue and profitability of the company.
Further we would like to bring in your kind notice that FY 13-14 was very turbulent for overall economy.
Even then also company has maintained its trend of growth both in terms of Revenue and Profit. Thus
Further the exports of the company have registered an overall growth of 53 percent which is Rs. 2900.40
Lacs in the Financial Year 2013-14 as compared to Rs. 1937.06 Lacs in the previous Financial Year
2012-13.
TRANSFER TO RESERVES
The Company proposes to transfer Rs. 272.97 Lacs to the general reserve out of the amount available for
appropriation and an amount of Rs. 2245.17 Lacs is proposed to be retained for future purpose.
DIVIDEND:
Based on the Company performance, your Directors are pleased to recommend for the approval of the
members a final dividend of Rs. 0.05 (5% ) per equity share of face value of Rs. 1 each for the year ended
31 March, 2014, which will absorb Rs. 59.48 Lacs inclusive of Dividend Distribution Tax amounting to
Rs. 8.64 Lacs.
The final dividend, if approved, will be paid to the members within the period stipulated by the
Companies Act, 2013, through either of ECS (preferably), NEFT, dividend warrants, bankers’ cheques.
DIRECTORS:
In terms of Article 86 of Articles of Associations of the Company and pursuant to section 152 of the
Companies Act, 2013, Mr. Vivek Garg (DIN: 00255443) and Mr. Purushottam Dass Bhoot (DIN:
00094087) who retires at the ensuing Annual General Meeting and being eligible, has offered himself for
re-appointment in terms of the provisions of the Articles of Association of the Company. The Board of
Directors recommended their re-appointment.
The Company has received declarations from all the Independent Directors of the Company confirming
that they
meet with the criteria of independence as prescribed both under sub-section (6) of Section 149 of the
Companies Act, 2013 and under Clause 49 of the Listing Agreement.
The Companies Act, 2013 provides for appointment of Independent Directors. Sub-section (10) of
Section 149 of the Companies Act, 2013 (effective from 01.04.2014) provides that Independent Directors
shall hold office for a term up to five consecutive years on the Board of a Company; and shall be eligible
for re-appointment on passing a special resolution by the shareholders of the Company. Sub-section
(11) states that no Independent director shall be eligible for more than two consecutive terms of five
years. Sub-section (13) states that the provisions of retirement by rotation as defined in sub section (6)
and (7) of section 152 of the Act shall not apply to such Independent Directors.
Our Non-executive Independent Directors were appointed as directors liable to retire by rotation under
the provisions of the erstwhile Companies Act, 1956. The Board of Directors has been advised that the
Non- executive Independent Directors so appointed would continue to serve the term that was
ascertained at the time of appointment as per the resolution pursuant to which they were appointed.
Therefore it stands to reason that only those Non-Executive Independent Directors who will complete
their present term at the ensuing AGM of the Company in 29th September, 2014, being eligible and
Non- executive Independent Directors who do not complete their term at the ensuing Annual General
Meeting, will continue to hold office till the expiry of their term (based on retirement period calculation)
and thereafter would be eligible for re-appointment for a fixed term in accordance with the Companies
Act, 2013.
Brief profile of the Directors who are to be appointed/re-appointed, nature of their expertise in specific
functional areas, names of companies in which they hold the membership of the Board of Directors or
committee thereof, chairmanship of the Board, their shareholding etc. as stipulated under Clause 49 of
the Listing Agreement, are furnished in the notice of the ensuing Annual General Meeting and in the
relevant section on Corporate Governance in the Annual Report elsewhere.
CORPORATE GOVERNANCE:
The Company believes that the essence of the Corporate Governance lies in the phrase “Your Company”.
It is “Your” company because it belongs to you- ‘the Shareholders ‘. The Chairpersons and Directors are
“Your” fiduciaries and trustees. Their Objective is to take the business forward in such a way that it
maximizes “Your” long term value. Your Company is committed to benchmark itself global standards in
all the areas including highest standard of Good Corporate Governance. Besides adhering to the
prescribed Corporate Governance practices as per clause 49 of the Listing Agreement, it voluntarily
governs itself as per highest standard of ethical and responsible conduct of business in line with the
local and global standards.
A Certificate from Practicing Company Secretary regarding compliance of the conditions of the Corporate
Governance, as stipulated in Clause 49 of the Listing Agreement with the Stock Exchange, is attached in
the Corporate Governance Report and form part of this report.
Certificate of the Managing Director, inter-alia confirming the correctness of the financial statement,
compliance with Company’s Code of Conduct, adequacy of the Internal Control measures and reporting
of matters to the Audit Committee in terms of Clause 49 of the Listing Agreement with the Stock
Exchange, is attached in the Corporate Governance Report and forms part of this Annual Report.
CODE OF CONDUCT
The Board has laid down a Code of Conduct for all the Board Members and Senior Management of the
Company and have affirmed compliance with the Code and a separate declaration to this effect is
annexed to the Corporate Governance Report.
FIXED DEPOSITS
During the year under review, the Company has not accepted any deposit under Section 58A and
section 58AA of the Companies Act, 1956 read with Companies (Acceptance of Deposits) rules, 1975.
CREDIT RATINGS:
During the year under review Brickwork Ratings India Private Limited , A SEBI, RBI & NSIC registered
credit rating agency in India, has assigned credit rating BWR BB+ (BWR Double B plus) for Long-term
Management’s Discussion and Analysis Report for the year under review, as stipulated under Clause 49
of the Listing Agreement with the Stock Exchanges in India, is presented in a separate section forming
part of the Annual Report.
Pursuant to the Special Resolution passed by the Members at the Annual General Meeting held on 27th
September, 2011 where the authorization granted to the Compensation Committee for the issue and
allotment of Equity shares of the company under Employee Stock Option Scheme (ESOPS) and subject
to the in principle approval from the Stock Exchanges, your company has implemented an Employee
Stock Option Scheme to reward the Employees of the Company for their performance and association
with the Company and also to motivate them to contribute to the growth and profitability of the
Company.
In the Financial Year 2013-14 company allotted 6,56,500 equity shares of face value of Rs. 1/- each to
the eligible employees and Independent Directors which were allotted to them on 31st March, 2014,
subject to the approval from the Compensation Committee.
Director’s Responsibility Statement pursuant to section 217(2AA) of the Companies Act, 1956, the
Directors of the Company hereby confirms:
1. That in the preparation of Annual Accounts the applicable accounting standards have been followed
along with proper explanation relating to material departures;
2. That your Directors have selected 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 affairs of the company at the end of financial year and of the Profit of the Company for that
period;
3. That your Directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provision of this Act, for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
4. That your Directors have prepared the Annual Accounts on a going concern basis.
CAPITAL STRUCTURE:
Paid-up Share Capital – In the previous year 2012-2013 the Paid-up Share Capital of the Company
stood at Rs. 10,10,39,370 comprising 1,01,03,937 Nos. of Equity Shares of Rs. 10 each and during the
current financial year 2013-14 there is an increase in the Paid-up share Capital of Rs. 6,56,000 on
account of issue of Shares under ESOS and now the Paid-up share capital stands at Rs. 10,16,95,870
comprising 10,16,95,870 Nos. of Equity Shares of Rs. 1 each.
In order to improve the liquidity of the Company’s shares at the Stock Exchanges with higher floating
stock in absolute numbers and to make it more affordable for the small retail investors having interest
to able to invest in the company’s equity shares there was a sub-division (stock split) of Equity Shares of
Rs. 10/- each stands sub-divided into 10 (Ten) Equity Shares of Rs. 1/- each by the approval of the
shareholders by passing an ordinary resolution at the EGM conducted on 15th March, 2014.
1. Vikas Global One Ltd Vs ADM Agro Industries Kota and Akola Private Limited
2. ADM Agro Industries Kota and Akola Private Limited Vs Vikas Global One Ltd
LISTING OF SECURITIES:
The company is listed at National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and Delhi
Stock Exchange (DSE) and actively traded. The Annual Listing Fee including service tax for the financial
year 2014-15 has been paid to all of the Stock Exchanges.
M/s RSPH & Associates, Chartered Accountants (Registration No. 003013N), New Delhi being the
Statutory Auditors of the Company will retire at the conclusion of ensuing Annual General Meeting and
being eligible offer themselves for re-appointment, as the Statutory Auditor of the company for the
Financial Year 2014-15. The company has received a letter from them to the effect that their re-
appointment, if made, would be within the limit prescribed under section 139 of the Companies Act,
2013 and they are not disqualified for such re-appointment within the meaning of the Section 141 of the
Companies Act, 2013.
The observation of the Auditors together with their notes to accounts forming part of the Balance Sheet
and the Cash Flow Statement as at 31st March, 2014 and the Statement of Profit & Loss for the year
ended on that date, referred to in the Auditors Report are self explanatory and do not call for any further
explanation from the Directors.
The Management continuously reviews the internal control systems and procedures for the efficient
conduct of the Company’s business. The Company adheres to the prescribed guidelines with respect to
the transactions, financial reporting and ensures that all its assets are safeguarded and protected
against losses. M/s KSMC & Associates (Registration No.003565N), the internal auditor of the Company
conducts the Audit on regular basis and the Audit Committee actively reviews internal audit reports and
effectiveness of internal control systems.
The Company has a rigorous business planning system to set targets and parameters for operations
which are reviewed with actual performance to ensure timely initiation of corrective action, if required.
COST AUDITORS
The Company has appointed M/s Niraj Kumar Vishwakarma & Associates (Firm Regn. No. 101683),
Cost Accountants for conducting Cost Audit for the financial year 2014-15 under the provisions of
section 139 of the Companies Act, 2013 and have also certified that they are free from any
disqualifications specified under section 141 read with section 139 and 148 of the Companies Act, 2013.
The Audit Committee has also received a Certificate from the Cost Auditors certifying their independence
and arm’s length relationship with the Company.
HUMAN RESOURCES
Your Directors would like to place on record their appreciation of all the employees for rendering quality
services and to every constituent of the Company be its in members, producers, regulatory agencies,
creditors or shareholders. The unstinting efforts of the employees have enabled your company to remain
in the forefront of Polymers and Chemicals business.
PARTICULARS OF EMPLOYEES:
The statement of information as required under section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules,1975 in respect of employees of Vikas GlobalOne Limited
does not apply.
As required in terms of section 217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Director) Rules, 1988, the relevant data pertaining to
conservation of energy, its consumption, technology absorption, research & development and foreign
exchange earnings and outgo are given in the prescribed format as annexed hereto and forms an
integral part of this report.
INCREASE IN EXPORTS
VGL is poised to achieve the status of “Star Export House” during the current Financial
Year.
GEOGRAHICALLY EXPANSION :
Dubai
VGL has started an office at UAE, located in Dubai, to cater to the needs of mid-sized
consumers in the global market. VGL plans to start a warehouse facility soon in the Free
Trade Zone, to facilitate smaller shipments & prompt deliveries increasing its reach & profit
margin by being able to cater to the consumers directly.
It shall also help developing newer markets conveniently being located in the global
distribution hub that’s UAE.
Singapore
Following the line of action taken at UAE, VGL plans to have an office & warehouse at
Singapore very soon, facilitating reach to newer markets in the South East Region.
Apart from the focus on the Global Market Place, to supplement the aggressive growth plans, the
company is adding new products, manufacturing facilities & strengthening the existing infrastructure to
support the growth planned in the existing products & business.
Vikas GlobalOne Limited is pleased to announce that it has entered into a Memorandum of
Understanding with Quimidroga S.A. for distribution of Company’s specialty polymer compounds and
additives in Western Europe Set up in Spain in 1944, Quimidroga S.A. has been ranked 7th among top
100 Chemical Distributers as per the survey of ICIS Chemical Business 163.
Quimidroga S.A. distributes a wide range of chemical products from industrial ones or commodities to
specialities with ahigh level of sophistication. By joining hands with Quimidroga, the company shall gain
access to Quimidroga’s wide network of customers, access to industry specifications, modern logistics
centers at right, locations and long term commitment in business which shall contribute in fast
devlopment of market in Western Europe for company’s products. This Memorandum of Understanding
between the company and Quimidroga will help company to ern more foreign exchange in terms of
Export Sales Revenue with higher margins. Its is expected to generte additional revenue and incrimental
net profit.
ACKNOWLEDGEMENT
The Directors wish to express their grateful appreciation for assistance and cooperation received from
Banks, Government Authorities, Stock Exchanges, Customers, Vendors and Members during the period
under review. Your Directors also wish to place on record their appreciation for the committed services
of the staff and workers of the Company.
Sd/-
Vikas Garg Place: New Delhi
Managing Director Date: 6th August 2014
The Management of VIKAS GLOBALONE LIMITED is pleased to present its report on Management
Discussions and Analysis. The core business of the Company is in manufacturing and distribution of
Specialty Polymers Compounds and Additives, while alongside acting as a distributor of global
conglomerates with niche in specialty chemicals and polymers. This report contains the expectations of
the Company's business based on the current market environment. It was a challenging year for the
Indian economy with persistent concerns over global growth prospects and financial stability weighing
on external demand and international funding.
The global economy is expected to improve gradually with improvement in US economic environment,
moderate growth of other emerging market economies like India, China and Brazil and revival in Euro
zone and Japan. As per the International Monetary Fund’s(IMF) ‘World Economic Outlook’ published in
April 2013, global economic growth is progressing to 3.3% in 2013 compared to 3% in 2012. However,
the stability and growth prospectus of US economy resulted in flow of money from emerging markets to
US and other developed markets which led to sharp depreciation of emerging market’s currencies
against USD particularly India which largely depends on import of Petroleum and Petrochemical
products. This has made managing current account deficit a challenge for policy makers.
There is no doubt that the Company has achieved its business targets every year due to the dedicated
efforts of the Human Resources of the Company. This year is no exception. Employer-Employee relations
continued to be cordial throughout the year. The Company has an existing system of regular interaction
between its senior management and operators at the shop floor level which enables sharing of business
information and solutions to the problems at the preliminary level.
Legal and commercial procedures have been actively disseminated throughout the Company. A legal
compliance management system has been developed to track regulatory compliance requirements. It has
been successful in identifying areas which require immediate legal attention and has reduced instances
of non compliance.
We are a global manufacturer and supplier of Chemicals and Polymer Compounds. We have two
manufacturing sites, one at Rajasthan and the other at Jammu & Kashmir. We have our locations
equipped with advanced equipments and analytical instruments. We have an excellent team of technical
and commercial professionals with expertise in chemicals manufacture and marketing. We cater to both
domestic and international market. We have competition both from local producers and international
producers.
Your Company has the advantage of having a product range covering a broad spectrum of applications.
Your Company continues to invest in upgradation and expansion of its manufacturing capacities. The
in-house R&D Department has been consistently developing quality products and is also striving for
achieving cost efficiencies.
The commodity nature of some of our products make them susceptible to fluctuations in raw material
prices and exchange rates. The company is vulnerable to External price volatility. Domestic prices are
dependent on the cyclicality of the industry and Government policy for its use in oil sector. Other
petroleum based raw materials are subject to International policy and price fluctuation.
Being a global player, we are also exposed to competition not only from domestic players but also large
international players. Cheap imports especially from countries like China could pose problems, which
would have to be faced by consistency in quality of the products and improving production efficiencies.
The Company has a risk management policy, which from time to time, is reviewed by the Audit
Committee of as well as by the Board of Directors. The Policy is reviewed quarterly by assessing the
threats and opportunities that will impact the objectives set for the Company as a whole. The Policy is
designed to provide the categorization of risk into threat and its cause, impact, treatment and control
measures. As part of the Risk Management policy, the relevant parameters for all manufacturing sites
are analyzed to minimize risk associated with protection of environment, safety of operations and health
of people at work and monitored regularly with reference to statutory regulations and guidelines defined
by the Company. The Company fulfills its legal requirements concerning emission, waste water and
waste disposal. Improving work place safety continued to be top priority at all manufacturing sites.
OUTLOOK
For the year 2014-15, our focus will continue on sustainable growth by taking measures for increasing
our market share of existing products, launching new products and creating new business in untapped
growth market segments in Export market.
Though there is sluggish demand in certain sectors and also increased competition from global and
domestic players, we expect the trend shown in 2013-14 to continue in the year 2014-15. With the
global growth of chemicals focused more on Asia, it is expected that there will be further growth in
chemical industry.
During the year 2014-15, we expect the investments, which we made in our further expansion of our
manufacturing units and also in debottlenecking capacities of other products, add to both our topline
and bottomline.
We are continuing with our efforts on improvement in efficiencies, margins and profitability while re-
looking at business strategies and models, wherever necessary and barring, unforeseen circumstances,
we expect to achieve better results for the year 2014-15.
The HR policies and procedures of your Company are geared towards nurturing and development of
Human Capital. Your Company has transparent processes for rewarding performance and retaining
talent.
Skill Gap Analysis and other systems are also in place to identify the training interventions required.
Employee relations at all locations continued to remain cordial. Your Directors wish to acknowledge the
sincere and dedicated efforts of the employees of the company and would like to thank them for the
same.
CAUTIONARY STATEMENT
Statements made in the report, including those stated under the caption “Management Discussion and
Analysis” describing the company’s plans, projections and expectations may constitute “forward looking
statements” within the meaning of applicable laws and regulations. Actual results may differ materially
from those either expressed or implied.
The Company has a proper adequate internal control system to ensure that all the assets are safe
guarded and protected against the loss from unauthorized used or disposition and that transactions are
authorized, recorded and reported correctly.
The internal control is supplemented by an extensive internal audit, periodical review by the
management and documented policies, guidelines and procedures. The internal control is designed to
ensure that the financial and other records are reliable for preparing financial statements and other
data and for maintaining accountability of Assets.
Information as per section 217(1)(e) read with Companies (Disclosure of particulars in the Report of
Board of Directors) Rules, 1988 and forming part of the Director’s Report for the year ended 31st March,
2014:
CONSERVATION OF ENERGY
The Company shall continue its endeavor to improve energy conservation and utilization.
Total energy consumption and production as per Form – A of the annexure to the Rules.
TECHNOLOGY ABSORPTION
Efforts made in technology absorption as per Form B of the Annexure to the Rules:
Research & Development (R & D)
a) Specific Areas in which R & D carried out by the Company: During the year, the company has
inclined its efforts in the development of its production efficiency by improving its methods and
technology.
c) Future Plan of Action/Expansions Plans: As the relevant industry is gearing up to cater to the
growing demand, Vikas GlobalOne Limited, is all set to expand their business in a big way in the
coming years. The company is also progressive in installation of additional line to increase the
production of Polymer and Polyester Compound at its existing plant located at Shahjahanpur, Alwar,
Rajasthan.
With a host of expansion plans, the Company is confident of achieving new heights in the coming
years.
Major initiatives are being taken to upgrade the various processes by making use of latest and better
techniques. Efforts are being made to make best use of available infrastructure and at the same time
importing new technology to bring out efficiency and economy. As a step towards it, the Company has
procured highly sophisticated machinery for its newly set up plant at Shahjahanpur, Rajasthan, for
commencing production of an additional range of Polymer Additives.
During the year under review, expenses were incurred on import of technology, raw materials and
further expenses were incurred on foreign traveling of directors and other executives of the Company.
Earnings : Rs.290,436,000/-
Outgo : Rs. 410,090,370 /- (include both foreign expenses and Import purchases)
Financial details of Subsidiaries pursuant to the approval under Section 212(8) of the Companies
Act, 1956 (Financial Year ended 31st March, 2014)
(Rs in Lacs)
Moonlite
Sigma Plastic Industries
Name of the Subsidiary Technochem Private
(Partnership Firm)
Limited
Capital 314.91 198.96
Reserve 140.03 Nil
Total Assets 2,460.27 1,794.82
Total Liabilities (Loans + Current
2,005.33 1,595.86
Liabilities)
Investment (Except in case of investment
Nil Nil
in subsidiaries)
Turnover (Including other income) 7, 575.14 2,950.25
Profit (Loss) before Taxation 47.16 58.08
Provision for Taxation (18.18) (15.62)
Profit (Loss) after Taxation 28.98 42.46
Proposed Dividend Nil Nil
Notes:
1) The Company hereby undertakes that annual accounts of the above said Subsidiaries and related
information will be made available to the holding and subsidiaries investors seeking such
information at any point of time.
2) The annual accounts of the above said Subsidiaries are ready for inspection by any investors in the
head office of the Company and that of the subsidiary's office.
Sd/-
Vikas Garg Place: New Delhi
Managing Director Date: 6th August 2014
Your Director present the Company’s Report on Corporate Governance in Compliance with
Clause 49 of the Listing Agreement executed with the Stock Exchanges.
Corporate Governance is an ethically driven business process and practices to ensure that the
affairs of the Company are being managed in a way which ensures accountability,
transparency, fairness in all its transactions in the widest sense and meet its stakeholder’s
aspirations and societal expectations. The Company’s philosophy on Corporate Governance is
to conduct business and its dealings with all stakeholders in compliance with laws and high
standard of business ethics for effective control and management system in an organisation,
which leads to enhancement of shareholders and other stakeholder’s value. The Board
considers itself as a Trustee of its shareholders and acknowledges its responsibilities towards
them for creating and safeguarding their wealth.
The Board and Management of the Company believes that Corporate Governance is the
commitment for compliance with all Laws, Rules and Regulations that apply to it with the spirit
and intent of high business ethics, honesty and integrity resulting in the effective control and
management system in the organisation leading toward the enhancement of shareholders and
other stakeholder’s value. It brings into focus the fiduciary and the trusteeship role of the
Board to align and direct the actions of the organisation towards creating wealth and
shareholder’s value.
VGL firmly believes in adopting the ‘best practices’ for sustainable development, increasing
productivity and competitiveness within the sector. The essence of Corporate Governance lies
in promoting and maintaining transparency and accountability in the higher echelons of
management. The demands of corporate governance require professionals to raise their
competence and capability levels to meet the expectations in managing the enterprise and its
resources effectively with the highest standards of ethics. Good governance practices stem from
the culture and the mindset of the organisation and at VGL we are committed to meet the
aspirations of all our stakeholders. Your company’s essential charter is shaped by the
objectives of transparency, professionalism and accountability. The Company continuously
endeavours to improve on these aspects on an ongoing basis.
VGL’s philosophy of Corporate Governance is based on preserving core values and ethical
business conduct. Corporate Governance is integral to the philosophy of the Company in its
pursuit of excellence, growth, and value creation. The Company's philosophy is to achieve
business excellence and optimize long term value for its shareholders on a sustained basis
through ethical business conduct. It envisages attainment of the highest level of transparency,
accountability and equity in all facets of its operations and all its interactions with
shareholders, employees, lenders and government
Rights and equitable treatment of shareholders: Organizations should respect the rights
of shareholders and help shareholders to exercise those rights. They can help shareholders
exercise their rights by openly and effectively communicating information and by
encouraging shareholders to participate in general meetings.
Interests of other stakeholders: Organizations should recognize that they have legal,
contractual, social, and market driven obligations to non-shareholder stakeholders,
including employees, investors, creditors, suppliers, local communities, customers, and
policy makers.
Role and responsibilities of the board: The board needs sufficient relevant skills and
understanding to review and challenge management performance. It also needs adequate
size and appropriate levels of independence and commitment.
Integrity and ethical behaviour: Integrity should be a fundamental requirement in
choosing corporate officers and board members. Organizations should develop a code of
conduct for their directors and executives that promotes ethical and responsible decision
making.
Disclosure and transparency: Organizations should clarify and make publicly known the
roles and responsibilities of board and management to provide stakeholders with a level of
accountability.
Adopted a policy of making timely and balanced disclosures: We believe in disclosure of
all material matters concerning the company to all investors. The announcements about
the company are based on factual details and presented in a clear and balanced way on
regularly on its website and also to the regulators.
Our Board exercises its fiduciary responsibilities in the widest sense of the term. Our
disclosures seek to attain the best practices in international corporate governance. We also
endeavor to enhance long-term shareholder value and respect minority rights in all our
business decisions.
Composition of Board
The composition of Board of Directors of the Company is in conformity with Clause 49 of the
Listing Agreement with the Stock Exchanges, which stipulates that a Company shall have an
optimum combination of Executive and Non-Executive Directors, The Board of Directors of the
Company consists of 9 members. Two of the Directors, i.e. the Managing Director & Whole
Time Director, are Executive Directors & rest of the seven Directors are Non- Executive
Directors, who brings a wide range of skills & experience to the Board.
Composition and the category of the Directors as on 31st March, 2014 are as follows:
DIRECTORS PROFILE
Brief profile of all the Directors, nature of their expertise in specific functional areas and the
names of the companies in which they hold directorships are provided below:
MR. VIKAS GARG, 41 years is a Commerce Graduate from Delhi University and Promoter-
Executive and Managing Director of the company.
He holds the directorship in the Company since 1992-93. He heads the company and provides
strategic direction and guidance to all the activities of the company. He possesses rich
experience of more than 18 years in the line of polymer compounds and chemicals. He
spearheaded the Group’s diversification into polymer compounds and chemicals and has been
instrumental in getting distribution rights from various global giants. He had utilized his
experience of the trading field to route his efforts in the manufacturing direction thereby
establishing two manufacturing units one in Jammu and other in Rajasthan. His vision is to
make Vikas GloablOne Limited the fastest growing company in the field of polymer compounds
and speciality additives.
Since Inception, the Company had crossed several milestones in its journey towards being a
truly world class organisation and has registered an exponential growth and consistently
making profits. Under his leadership, company has shown consistent business growth and
profitability. In addition, he continues to shoulder several other corporate responsibilities and
playing a major role in the company.
His courage is reflected by the way he ventured into the business of speciality chemicals from
scratch at a very young age. In 2010, he had directed his efforts to include a new product in
the kit of the company, thereby starting the production of Expoxidized Soyabean Oil – PVC
Plasticizer & Co- Stabilizer under the brand name of ADD FLEX to the range of products being
offered to the industry; which again is a first in the Northern India region. It’s manufacturing
facility is located at Shahjahanpur, Rajasthan. ADD FLEX – ESBO Plasticizer, is made from
agriculture products thus acting as substitute of crude oil based other plasticizers like
DOP/DBP etc.
Since then there was no looking back. He is adventurous and does not hestitate to look beyond
teh boundaries. He strongly believes in “ NO RISK NO GAIN”. It is because of his risk taking
ability he had lead the company to great heights and continuing further. Under his leadership
company has increased its installed capacity of TPR Compounding to many folds in a short
span of years.
He possesses the ability to sail his company through rough weathers, which is evident of his
impeccable quality of courage and optimism. He believes true essence of running business lies
in building and maintaining relations.
He is a leader in true sense and stands not only for his cause but takes responsibility and
motivates other individuals also. He considers his employees as his assets and work with them
as a team. The leadership quality of his has made the employees to have long association with
the company therby reducing the attrition rate.
His Strategic direction and Innovative ideas helped the company to have a global impact and
gearing up to cater to the growing demand. Under his guidance, company is all set to expand
its business in a big way in the coming years. He is targeting impressive growth plans by
increasing the production setup. Under his leadership and with a host of expansion plans, the
company is confident of achieving new heights in the coming years.
He also hold directorship in Vikas Polymerland Pvt. Ltd. & Pride Buildtech Pvt. Ltd. & Moonlite
Technochem Pvt. Ltd. & Vikas Utilities Pvt. Ltd.
He is the Chairman of the Executive Committee and Members of Risk Management Committee,
Nomination Remuneration Committee, Compensation Committee, Corporate Social
Responsibility Committee.
MR. VIVEK GARG, 39 years is a Commerce Graduate and Promoter-Executive and Whole-
Time Director of the company.
He has in-depth knowledge of the business of the company and contributes for the overall
working of the company with his 16 years of rich experience. He is supervising the operation of
the company pertaining to the Real Estate, Logistics, Administration and Purchase Segments.
MR. NARENDER KUMAR GARG, 65 years holds Masters Degree in Political Science and
History and an Independent & Non- Executive Director of the Company.
He has vast experience while serving on the Board of JBG Indraprastha Developers Pvt. Ltd.,
Super Bazaar (The Cooperative Store Ltd), New Delhi, and acts as a Chairman of the
Disciplinary Committee of Super Bazaar. He was also the member of Azadpur Mandi
Committee, Delhi Government. Addition to that he was appointed as an arbitrator with the
registrar of Co- operative Societies, Delhi Government.
He is a Managing Director in ISG Securities and Finance Pvt. Ltd. an NBFC and Director of
JBG Indraprastha Developers Pvt. Ltd., 365 Labels Private Limited, GBG Estate Developers
Private Limited, Moonlite Technochem Pvt. Ltd. He is also acts an arbitrator in the Quasi
Judicial cases in the Registrar of Cooperative Societies, Delhi, the Chairman of the Disciplinary
Committee, Azadpur Committee, Delhi Government a member of the Azadpur Mandi
Committee, Delhi Government.
MR. PURUSHOTTAM DASS BHOOT, 85 years is Law Graduate and Company Secretary is
Independent & Non- Executive Director of the company.
He has a vast experience in handling legal and secretarial assignments during his association
with Bazaloni Groups Ltd. He is providing a valuable support in Legal and Secretarial matters
of the Company since 1994
MR. SUMER CHAND TAYAL, 68 years is a Civil Engineers and an Independent & Non-
Executive Director of the Company.
He during his association with Delhi Development Authority has gained rich experience in
Materials Management for executing various construction /Development Projects. He is on the
board of the company since 2006 and is advising the company on various projects under real
estate Segment and plays a major role toward execution of new projects of the Company.
MR. JAGADISH CAPOOR, 75 years holds Masters Degree in Commerce from Agra and is a
Fellow member of the Indian Institute of Banking and Finance. He is an Independent & Non-
Executive Director of the company.
He has vast experience of over 45 years. He has formerly been a Deputy Governor of RBI and
has also been a member on the boards of several banks, e.g. Bank of Baroda, State Bank of
India, National Housing Bank, NABARD, Exim Bank, and HDFC Bank (as Chairman), and also
on the board of Bombay Stock Exchange (BSE).
He is also on the boards of Indian Hotel Co. Ltd, LIC Pension Fund Ltd, LICHFL Trustee Co.
Pvt. Ltd., Entegra Limited, Atlas Documentary Facilitators Company Pvt. Ltd., Asset Care &
Reconstruction Enterprise Ltd., Quantum Trustee Co. Pvt. Ltd., Mannapuram Finance Ltd, ,
LIC Housing Finance Limited, Nitesh Estates Limited, HDFC Securities Limited. He is also
associated with Indian Institute of Management, Indore as a member of Board of Governor.
MR. PRADIP KUMAR BANERJI, 72 years is a post graduate in economics from Lucknow
University. He is an Independent & Non-Executive Director of the company.
He was the member of Indian Administrative Service, 1966 batch, West Bengal. He has also
served on the senior level position in the Government of India like Finance Secretary and State
Governments like Secretary to the governor of West Bengal. He has gained rich experience in
the field of Finance, Industry, Foreign Trade, Foreign Investment while his association with the
World Bank, Asian Development Bank, IFC, European Union, ICAO etc. The Company is
benefitted by his Global connections and financial analytical capability, which includes
feasibility study for the new project.
He has also been awarded Padma Shri in 1972 for his outstanding public service. Also he has
been awarded Medal of Honor by the Soviet Chamber of Commerce and Industry in 1984.
MR. MANOJ SINGHAL, 58 year is a Commerce Graduate from Punjab University and an
Independent & Non- Executive Director of the Company.
He launched a dream journey of his own. He has justified the true spirit of the motto, by
achieving where he has reached continuing to aspire & achieve more. Starting his business
career in packaging industry and with an innovative and inquisitive mind having in built
momentum for taking challenges in life, ventured into high technology industry for
manufacturing of Precision Metallic Coil Spring at Gurgaon in 1991.
He has spread world class quality education of rural poor children at affordable price by
associating in the capacity of president with Mohinder Singh Syngle Education and research
Society New Delhi. Apart from academics, thrust is given on development of personality, Indian
value system and secularism amongst students, in these institutes. He has widely travelled all
over the globe on Business Mission, International Trade & Business Conferences. His
He has also contributed on social Cultural & Sports and is associated with the President –
Punjab Amateur Atheletic Association, Distt. Sangur, Punjab, Vice president –Shree Dharmic
Lila Committee (Regd), Trustee –Sri Bhagwati Rakta Chumunda Trust, Kangra, H.P., Vice
Chairmen- Shirdi Sai Baba Temple Society & Sai Education Trust, Associate Member – Indian
Habitat Centre, New Delhi and others.
He is the Chairman and Managing Director of MM Auto Industries Limited and MM Asan Auto
Limited. He is also a Director in M N M Asset Reconstruction company Limited, Hitkari
Automobiles Private Limited, MNS Auto Industries Limited, MM Apartments Private Limited,
MM Apartments N Infrastructure Private Limited, MM Vidyut Private Limited, Triveni Bhoomi
Vikas Private Limited, MM Infosystems Private Limited. He hold professional membership in
the Managing Committees, PHD Chamber of Commerce & Industry, MM Phsyi- Health Care
The Board of Directors meets regularly to review strategic, operational and financial matters of
the Company and has a formal schedule of matters reserved for its decision. It approves the
interim and preliminary financial statements, the annual financial plan, significant contracts
and capital investment along with strategic decisions like restructuring of business etc.
wherever appropriate the Board delegates its authority to Committees of Directors like: Audit
Committee, Stakeholders Relationship Committee, Risk Management committee, Nomination
Remuneration Committee and Equity Warrant Committee. Information is provided to the Board
in advance of every meeting.
During the Financial Year 2013-14, 5 (Five) Board meetings were held. The maximum gap
between two Board Meetings was less than four months ensuring compliance with Clause 49 of
the Listing Agreement of Stock Exchanges and the Companies Act, 1956. Below mentioned
table specifies the dates on which the board meetings were held:
I. AUDIT COMMITTEE
The audit committee has been mandated with the same terms of reference as specified in
Clause 49 II of the Listing Agreement with the Stock Exchanges. The present terms of
reference also fully conform to the requirement of Section 292A of the Companies Act,
1956.
The Audit committee reviews with the management and also with the statutory and
internal auditors, all aspects of the financial results, effectiveness of internal
audit/processes, taxation matters and other key areas. The Audit Committee also
recommends the appointment and remuneration of the Internal Auditors and Statutory
Auditors to the Board, considering their independence and effectiveness.
During the Financial Year 2013-2014, 4(four) Audit Committee were held. Below
mentioned table specifies the dates on which the Board meetings were held:
Committee must meet at least once in every quarter or more often if warranted and
invite members of management or other required persons to attend the meeting for
obtaining significant information from them.
Ensure the prudence of external auditor and neutrality of internal auditor.
Evaluation on regular basis the adequacy of internal audit function to ensure the
complete coverage of audit, reduction of redundant efforts and effective utilization of
audit resources.
Review Company’s accounting policies, internal accounting controls, financial and
risk management policies and such other matters as the committee deems
appropriate.
Review Company’s compliance with prescribed and applicable accounting
standards.
Validate related party transactions.
Validate compliance with disclosure requirements.
Review and validate Directors report’s financial aspects.
Analyze with independent auditor the effectiveness and completeness of internal
controls which includes the IT systems and security.
Discussion with independent auditor and internal auditor regarding
Any substantial findings during the year including the status of previous
recommendations.
Significant internal control weaknesses found by auditors
Any adversity faced by the auditor’s during their work including restriction on
scope of activities and access to information.
Any modification in the scope of pre-decided internal audit plan.
Regular reporting to board of directors on significant findings and ongoing activities.
Obtaining regular updation from management on status of risk identification and its
management.
Based on above cast a view on the systems and processes related with accounting
and financials.
As required in terms of the Listing Agreement of Stock Exchanges, the Audit Committee has
reviewed the following information:
Management Discussion and analysis of financial condition and results of
operations.
Statement of significant related party transactions submitted by the management.
Internal Audit Reports
Appointment, removal and terms of remuneration of the internal auditors.
The Board constituted the Executive Committee and is empowered to make and
implement major organizational decisions. The executive committee acts as an overseer
of organizational activities and has the authority to request justification of certain
matters as well as to plan activities.
During the Financial Year 2013-2014, 6(Six) Executive Committee were held. Below
mentioned table specifies the dates on which the Board meetings were held:
To exercise all of the powers and authority of the Board of Directors to the
management of the business and affairs of the Company, subject to applicable laws, in
the interim between meetings of the Board of Directors;
To take decisions with regard to the following:
Major short term operations, and cash and banking operations related to the
Company
In its responsibility for the daily management of the Company, the Executive
Committee takes decisions for major engagements and commitments, not reserved
for the Board.
To authorize Directors and / or officials of the Company to execute agreements, deeds,
documents and writings as may be required time to time for the purpose of executing
various business transactions, and to do and perform all such acts, deeds, matters and
things as may be necessary.
To exercise all or part of daily management of the Company and supervision of
subsidiaries and companies linked to the Group;
The Board constituted Compensation Committee in order to comply with the provisions of
Clause 49 of the Listing Agreement. The role of the compensation committee is to set
appropriate and supportable pay programs that are in the organization’s best interests
and aligned with its business mission and strategy.
During the Financial Year 2013-2014, 1(one) Compensation Committee were held. Below
mentioned table specifies the dates on which the Board meetings were held:
The Company addresses all complaints and grievances expeditiously and replies are sent/
issues resolved usually within fifteen days, unless there is a dispute or other legal
constraints.
Status of Investor Complaints as on March 31, 2012 and reported under Clause 41 of the
Listing Agreement are as under:
The primary purpose of this committee would be to ensure that directors and executives are
fairly rewarded for their individual contribution to company’s performance without any
personal interest and also keeping other stakeholders’ as well as company’s financial and
commercial health intact. Committee shall also serve as party to monitor and strengthen
the objectivity and credibility of directors and executives’ remuneration system and also
making recommendation to the board on remuneration package and policies applicable to
directors.
The scope of the activities of Nomination Remuneration Committee includes the following:
The Equity Warrant Committee has been constituted for the purpose of better corporate
governance and for smooth operations of conversion of equity convertible warrants.
The quorum for a meeting of Equity Warrant Committee, duly convened and held, shall
be one third of the total number of members or two members, whichever shall be higher.
The Equity Warrant Committee will be authorized to convert the convertible warrants,
issue and allot resultant equity shares, subject to such conditions or modifications that
may be imposed, required or suggested by the Securities & Exchange Board of India (the
SEBI), Stock Exchange(s) or other authorities and to settle all questions or difficulties
that may arise with regard to the aforesaid in such manner as it may determine in its
absolute discretion and to take such steps and to do all such acts, deeds, matters and
things as may be required, necessary, proper or expedient.
The Board has further constituted Risk Management Committee with the object to
examine and supervise the management for all the risk that can affect the company’s
objectives, business, its sustainability and reputation. The Committee will also be
responsible for spreading awareness about the possible risks and taking appropriate and
timely steps to mitigate it. Risks include Credit risk, Market risk, Operational risk,
Reputation risk and also Macro Economic risk.
Ensure that the identification and evaluation of key risks that threaten achievement of
the company’s objectives is carried out, and that a register of these risks is maintained.
Monitoring and managing the credit risk, market risk, operational risk, macroeconomic
risk and other risk of the company.
At VGL’s we pride ourselves for being a “Catalyst in making decisions which would enable
growth of the company at better terms”. We would like to be known as a Company that
maintains very high standards of Ethical Integrity and Fairness while keeping total focus on
Performance, thus contributing to the overall wellbeing of all our stakeholders including
Customers, Shareholders, Employees, Vendors, Community and the Government.
Our Corporate Governance philosophy envisages attainment of the highest levels of Integrity,
Accountability, Performance, Ethical Behavior and Equity in all facets of our Operations. We
believe that the practice of each of these elements will create the right corporate culture,
empower our employees and ensure sustainability of our Operations.
We have an independent and well-informed Board of Directors (and its Remuneration and
Audit Committees) at the core of our Corporate Governance practice. They oversee how the
management and all employees serve and protect the long-term interests of all our
stakeholders.
Our employees including the Board of Directors actions are governed by our “Code of Conduct
& Ethics Policy “as enumerated below.
We in VGL believe that good business practices and ethics go together to produce best long
term results for all our stakeholders. We take our responsibility and reputation as a good
corporate citizen seriously.
We are proud of our values and their effect on how we do our business. This Code of Conduct
& Ethics Policy sets forth legal & ethical standards that apply to all employees of VGL.
We would implement this Code over a period of time, starting with an internal implementation
as a first step. All employees are expected to follow this code fully and are encouraged to report
any non-observances.
All employees shall deal on behalf of the Company with professionalism, honesty, integrity as
well as high moral and ethical standards. Such conduct shall be fair and transparent and be
perceived to be as such by third parties.
Employees are expected to deal with other colleagues in an honorable and respectful manner,
without any gender bias / harassment. All employees, vendors and service providers should be
selected on merit, without any conflict of interest or favoritism. Appropriate disclosures should
be made wherever required to maintain transparency.
All employees shall at all times ensure compliance with all the relevant laws and regulations
affecting operations of the Company. They shall keep abreast of the latest developments in
relevant laws, rules and regulations related to their area of work.
VGL respects human rights and encourages fair dealing (nondiscriminatory) across all levels
and to all stakeholders. There shall be no discrimination on grounds of race, religion, gender,
place of origin or caste. Accordingly, the Company expects each employee to deal fairly and
with equality with other employees, customers, shareholders, suppliers, competitors, auditors,
lawyers, creditors and advisers of the Company and encourage others to do the same.
4. Business Interests
An employee shall not engage in any business, relationship or activity, which might conflict
with the interest of the Company. All are expected to devote full attention to the business
interests of the Company, and are prohibited from engaging in any other activity that interferes
with their official performance of responsibilities to the Company or is otherwise in conflict with
or prejudicial to the Company.
5. Transparency
All employees shall ensure that their actions in the conduct of business are totally transparent
except where the needs of business security dictate otherwise. Such transparency is brought
about through appropriate policies, systems and processes which they are expected to follow
fully.
All the assets of the Company (both tangible and intangible) shall be deployed for the purpose
of conducting the business for which they are duly authorized for. None of these should be
misused or diverted for any personal commercial use or benefit, unless such use is allowed
under the terms of employment.
All inventions and innovations during course of business should belong to the Company. These
include new products, processes, services that get developed while working on various
assignments. Every employee should take precaution to prevent any loss of such IP rights, by
keeping things confidential & safe and reporting to Legal Manager for applying for Patent,
Trademark and Copy Rights.
8. Corporate Opportunities
All employees should ensure that Company does not lose any benefit accruing to it by
negligence or delay in action. Any benefit accruing to the Company should be used only for
Company purposes. There should not be any direct personal gain arising out of it. However, in
specific instances where there are some indirect benefits accruing to employee(s), specific
approval should be obtained or granted.
9. Cost Consciousness
All employees are expected to strive for optimum utilization of available resources. They shall
exercise due care to ensure that all costs incurred are reasonable and there is no wastage of
resources. Every time a cost is incurred, proper evaluation of such cost vs benefits should be
done, as if the expenditure was being incurred for self. Proper approvals as per Company
policies should be taken before any costs are committed.
The Company records should be maintained in such a way that they are in full compliance
with all rules, laws and regulations. Adequate precautions should be taken to protect them
from falling into wrong hands, which could harm Company’s business interests. They should
be kept up to date and free from any misleading or wrong information. Important records
should be stored in a safe place and properly marked.
11. Confidentiality
Employees come across a number of confidential information which may take many forms.
They must take proper care of such information and ensure that it is not misused in any way
which is detrimental to the Company’s business or used for own commercial benefit. They
must also not disclose actions or activities relating to our business operations to outsiders,
unless they concern or impact them.
The Company has procedure for entering into confidentiality agreements with various vendors,
which shall be executed before any information is shared with them.
An employee is expected to accept only such information that is necessary to accomplish the
purpose of receiving it, and not for any other purpose.
All products should be of promised content and quality. Advertising should be within law and
shall be honest.
Only MD and persons officially designated for such interactions should engage with any
member of press and media in matters concerning the Company. Any requests for interaction
should be directed to such authorised persons.
15. Competition
VGL believes in fair and ethical competition. No employee shall use any illegal or unethical
means to obtain any information about competition or to take any business from competition
by any misrepresentation or by giving wrong facts to the customer(s).
In order to ensure fairness and avoid any adverse impact on business, all community activities
under VGL name shall be properly authorized before they are undertaken by any employee.
Such activities should be unbiased, should not be related to promoting any religion and shall
not harm any business interests of the Company.
VGL is committed to be an honest citizen. All employees are expected to provide full support to
any Government initiatives, investigations and compliance requirements. All due taxes shall be
computed properly and paid on time. Proper disclosures should be made wherever there is lack
of full clarity and an opinion is formed.
VGL believes in fairness and equality. In order to avoid any conflicts and political alignments,
VGL shall not participate in any political activities or contributions.
VGL and its employees shall neither receive nor offer or make, directly or indirectly, any illegal
payments, remuneration, gifts, donations or comparable benefits that are intended, or
perceived, to obtain uncompetitive favors for the conduct of its business.
The employees may however accept and offer nominal gifts during course of the business,
provided such gifts are customarily given and are of a commemorative nature, such as Diaries,
Calendars and other Stationary items. Employees may also attend and take others out for
normal or customary business lunch, dinner and functions. These should however not impact
or compromise objectivity and fairness of an employee to take Company decisions.
VGL shall strive to provide a safe, healthy, clean and ergonomic working environment for its
people and guests who visit it. It shall also strive to prevent any wasteful use of natural
resources (incl. water) and is committed to help in improving the environment. Wherever
feasible it will reduce, replace, recycle or regenerate articles consumed in its operations.
DISCLOSURES
SECRETARIAL AUDIT
In line with the highest standards of Corporate Governance adopted by the Company and also to
ensure proper compliance with the provisions of various corporate laws, regulations and guidelines
issued by the Securities and Exchange Board of India and the Listing Agreement, the Company
has voluntarily started a practice of Secretarial Audit from a Practicing Company Secretary.
An audit report issued by M/s. Loveneet Handa & Associates, Company Secretaries, in respect of
the secretarial audit of the Company for the financial year ended 31 March 2014, is provided
separately in the Annual Report.
MEANS OF COMMUNICATION
The Company regularly intimates the Stock Exchanges regarding the Audited Financial Results
as well as the Unaudited Results for every quarter of the Company. The results of the Company
are published in one English and one Hindi newspaper as per the requirement of Clause 32 the
Listing Agreement with the Stock Exchanges.
Management Discussion and Analysis Report forms part of the Reports of Board of Directors
COMPLIANCE OFFICER
Mr. Sunil Malik, Company Secretary, is the Compliance Officer under Clause 47 of the Listing
Agreement with Stock Exchange.
The Shares of the Company are required to be traded in dematerialized from and are available
for trading under both the Depository Systems in India- NSDL and CDSL. The International
Securities Identification Number (ISIN) allotted to the Company’s Share under Depository
System is INE806A01012. The annual custody fee for the financial year 2014-15 has been paid
to NSDL and CDSL, the Depositories. In the Company, 98.40% (percent) of shares of the
Company have been dematerialized as on 31st March, 2014.
National Stock Exchange of India Limited, Exchange Plaza, C-1, Block-G, Bandra –Kurla
Complex, Bandra (E), Mumbai- 51.
Bombay Stock Exchange Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400 001
The Delhi Stock Exchange Association Limited, DSE House, 3/1, Asaf Ali Road, New Delhi-
110 002
Trade world, “A” Wing, 4th floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel,
Mumbai 400 013
Telephone: 022-24994200, Facsimile: 022-24976351, E-mail: [email protected],
Website:www.nsdl.co.in
Phiroze Jeejeebhoy Towers , 17th floor, Dalal Street, Mumbai 400 001
Telephone: 022-22723333, Facsimile: 022-22723199/2072, E-mail: [email protected],
Website: www.cdslindia.com
Shares lodged with the Registrar’s office are usually processed within 15 days from the date of
lodgment, if the documents are clear in all respects. All requests for dematerialization of
securities are processed and confirmed within 15 days.
Dec/13
Apr/13
Jan/14
Mar/14
May/13
Jun/13
Jul/13
Nov/13
Feb/14
Aug/13
Oct/13
In our opinion and to the best of our information and according to the explanations given to us,
we certify that the Company hascomplied with the conditions of Corporate Governance as
stipulated in Clause 49 of the Listing Agreement in all material respects.
We state that in respect of the investor grievances received for the year ended 31st March,
2014, no such investor grievancesremained unattended/pending as at 31st March, 2014 as per
the records maintained by the Share Transfer & Shareholders'/Investors' Grievance
Committee.
We further state that such compliance is neither an assurance as to future viability of the
Company nor the efficiency or effectiveness with which the management has conducted the
affairs of the Company.
Sd/-
(LOVENEET HANDA)
ACS-25973
C.P NO.-10753
I, Vikas Garg, Managing Director, of Vikas GlobalOne Limited, to the best of our knowledge and
belief certify that:
1. I have reviewed the Balance Sheet and Profit and Loss Account of the Company for the
year ended 31st March, 2012 and its entire schedule and notes on accounts, as well as
the Cash Flow Statement.
a. These statements do not contain any materially untrue statement or omit to state a
material fact or contains statement that might be misleading;
b. These statements together present a true and fair view of the Company's affairs and are
in compliance with existing accounting standards, applicable laws and regulations.
3. We also certify, that based on our knowledge and the information provided to us, there
are no transactions entered into by the company, which are fraudulent, illegal or violate
the company's code of conduct.
4. The company's other certifying officers and we are responsible for establishing and
maintaining internal controls for financial reporting and procedures for the Company,
and we have evaluated the effectiveness of the Company's internal controls and
procedures pertaining to financial reporting.
5. The Company's other certifying officers and we have disclosed, based on our most
recent evaluation, wherever applicable, to the Company's auditors and through them to
the Audit Committee of the Company's Board of Directors:
a. All significant deficiencies in the design or operation of internal controls, which we are
aware and have taken steps to rectify these deficiencies;
b. Significant changes in internal control over financial reporting during the year;
We further declare that all board members and senior Management have affirmed compliance
with the code of conduct for the current year.
Vikas Garg
Managing Director
We have audited the accompanying financial statements of Vikas Globalone Limited ("the
Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of
Profit and Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
The Company’s Management is responsible for the preparation of these financial statements
that give a true and fair view of the financial position, financial performance and cash flows of
the Company in accordance with the Accounting Standards notified under the Companies Act,
1956 ("the Act") read with the General Circular 15/2013 dated 13th September’ 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the Companies Act’ 2013 and in
accordance with the accounting principles generally accepted in India.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Standards on Auditing issued by the Institute
of Chartered Accountants of India. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
Opinion
In our opinion and to the best of our information and according to the explanations given to us,
the financial statements give the information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,
2014;
(b) in the case of the Profit and Loss Account, of the profit for the year ended on that date;
and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order") issued by the
Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in
the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
a. we have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt
with by this Report are in agreement with the books of account
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement comply with the Accounting Standards notified under the Act read
with the General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
Referred to in Paragraph 1 under the heading of “Report on other legal and regulatory
requirement” of our report of even date.
1. The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
2. The fixed assets have been physically verified by the management at all location at
reasonable intervals. No material discrepancies between book records and the
physical inventories have been noticed on such verifications.
The company has not taken any unsecured loan from parties covered in the
Register maintained under section 301 of the Companies Act, 1956.
The Company has not granted any unsecured to parties covered in the register
maintained under section 301 of the Companies Act, 1956. Hence Clause 3(a) to 3(c)
are not applicable
In our opinion and according to information and explanation given to us, the rate of
interest and terms and conditions are not prime-facie prejudicial to the interest of
the company.
In respect of loans if any taken by the company, the loans are repayable on demand
and therefore the question of overdue amount does not arise.
5. In our opinion and according to the information and explanations given to us, there is
an adequate internal control procedure commensurate in the size of the company and
the nature of its business for purchase of inventory and fixed assets and on the sale
of goods. During the course of our audit, no major weakness has been noticed in the
internal controls. We have not observed any failure on the part of the Company to
correct major weakness in internal control.
6. (a) Based on audit procedures applied by us and according to the information and
explanations provided by the management, we are of the opinion that the transaction
(b) According to information and explanation given to us, the transactions made in
pursuance of contracts or arrangements entered in the registers maintained under section
301 and exceeding the value of five lakh rupees in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing market prices at
relevant time.
7. In our opinion and according to information and explanations given to us, the
company has not accepted any public deposit during the year under consideration.
Otherwise the Company has complied with the provisions of sections 58A and 58AA of
the Company, 1956 and rules framed there under. We have been informed that no
order has been passed by the Company Law Board or national company law tribunal
or Reserve Bank of India or any court or any Tribunal in this regard.
8. We have broadly reviewed the books of account maintained by the Company in respect
of products where, pursuant to the Rules made by the Central Government of India,
the maintenance of cost records has been prescribed under clause (d) of subsection (1)
of Section 209 of the Act, and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether they are
accurate or complete.
9. In our opinion the company has an internal audit system commensurate with the size
and nature of its business.
10. According to information and explanations given to us the company is depositing with
appropriate authorities, undisputed statutory dues including provident fund , investor
education fund, employees state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, Cess and other statutory dues to the extent applicable to it. There
are no undisputed demands in respects of income tax, sales tax, service tax, excise
duty, cess and other statutory dues payable for a period of more then six months from
the date they become payable as at 31st March’2014 except a Vat Disputed amount of
Rs 0.88 Lacs and VAT Disputed demand of Rs 90.66 Lacs for 2011-2012 for which
appeal is pending before Special Commissioner, Department of Trade and Taxes and
Custom Duty disputed of Rs 5.33 Lacs and Income Tax demand of Rs 31.44 Lacs in
the case of Vikas Utilities Private Limited which was merged with Vikas Globalone
Limited on amalgamantion. Delay has been observed in deposit of the Service Tax,
TDS, ESI and PF with respective authorities during the year under consideration.
11. Based on our examination of the records and evaluations of the related internal
controls, we are of the opinion that there is no such transaction and contracts relating
to shares, securities and other investment dealt in by the company in relation to
which proper records are required to be maintained.
12. The company has given corporate guarantee for loans taken by Subsidiary Company
Moonlite Technochem Private Limited for a sum of Rs. 1600 Lacs and Rs 600 Lacs in
the case of Sigma Plastic Industries ( Partnership Concern in which Company is a
partner ) from banks or financial institutions, the terms and conditions there of are
prima facie prejudicial to the interest of the company.
14. According to the information and explanations given to us, and on an overall
examination of the Balance Sheet of the company we report that the company has not
utilized funds raised on short- term basis for long-term investment.
15. The company has not made any preferential allotment of shares to the parties and
companies covered in the register maintained under section 301 of the Companies
Act, 1956 during the year.
16. The Company does not have accumulated losses as at the end of financial year and
has not incurred cash losses in the current financial year and in the immediately
preceding financial year.
17. According to the information and explanation given to us, the Company has not
granted any loans/ advances on the basis of security by way of pledge of shares,
debentures and other securities.
18. Clause 4(xiii) of the Order is not applicable to the Company as the Company is not a
chit fund or a nidhi / mutual benefit fund/ society.
19. On the basis of the records made available to us, the Company has no debentures
outstanding during the year.
20. The Company has not raised any money through public issue during the year. During
the year the company has issued 6,56,500 Equity Shares of Rs. 1/- Each under
Employee Stock Option Scheme.
21. During the course of our examination of the books and records of the Company
carried out in accordance with the auditing standards generally accepted in India, we
have neither come across any material instance of fraud on or by the Company,
noticed or reported during the year nor we have been informed of such a case by the
management.
22. Other clauses of the Order are not applicable to the Company.
The company is engaged in the business of manufacturing and distribution of high end products used in
Agricultural Pipes, Auto Parts, Wires and Cables, Artificial Leather, Footwear, Organic Chemicals, Polymers,
Pharmaceuticals and Packaging industries while alongside acting as distributor of global conglomerates
with niche in specialty chemicals and polymers.
Manufacturing plants of the company are spread in various geographical locations across India, in the state
of J&K and Rajasthan. This has been done keeping in mind the strategic and location advantages with
regard to availability of raw material, tax incentives, subsidy grants as well as market potential for finished
goods. These industrial units have speedy connectivity to Road, Rail and Air transport. The company has
built the plants with the best of the machineries and technical knowhow available from the world’s leading
suppliers. The manufactured products of the company have been well received in the market and have
further scope of greater development with increased production capacities. The products manufactured by
the Company are environmental friendly.
The significant accounting policies adopted by the Company, in respect of the financial statements are set
out below.
a) Use of estimates:
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of
operations during the reporting year end. Although these estimates are based upon management’s best
knowledge of current events and actions, actual results could differ from these estimates. Hence, the
differences between the actual results and estimates are recognized in the year in which the results are
known / materialized.
b) Inventories
i) Raw Material/Trading is valued at lower of cost OR net realizable value.
ii) Finished products are valued at lower of cost OR net realizable value. Cost being the weighted average
material cost & includes cost of conversion & other cost incurred in bringing the goods to their
present location & condition. Closing balance of finished stock are accounted for on the basis of
physically verified quantities.
iii) Packing Material, stores & spares parts are valued at lower of moving weighted average cost and net
realizable value.
iv) Inventory on construction activities has been valued at cost incurred.
v) Obsolescence: Obsolete, slow moving & defective inventories are identified at the time of physical
verification of inventories & wherever necessary provision is made for such inventories.
vi) Shortage / Excess of Packing Material, Stores & spares parts and finish goods arising from physical
verification are charged/adjusted to consumption/production.
d) Fixed assets, depreciation and amortization, impairment: Fixed assets are stated at cost of acquisition
less accumulated depreciation and impairment of losses if any. The Company capitalizes all direct costs
relating to the acquisition and installation of fixed assets. Advances paid towards the acquisition of fixed
assets outstanding at each balance sheet date and the cost of fixed assets not ready to use before such
date are disclosed under ‘Capital advances’.
Depreciation on fixed assets is computed using written down value method, as per the rates and as
per the manner prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on additions / deletions to fixed assets is provided on pro-rata basis from/till the date
the asset is put to use / discarded. Individual assets costing less than Rs. 5,000 are fully depreciated
in the year of purchase.
Goodwill is amortized over the period of five years.
e) Impairment:
At each balance sheet date, the Company assesses whether there is any indication that an asset may be
impaired, based on internal or external factors. If any such indication exists, the Company estimates the
recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or
cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is
reduced to its recoverable amount. In assessing value in use, the estimated future cash flows are
discounted to their present value at the weighted average cost of capital. After impairment, depreciation is
provided on the revised carrying amount of the asset over its remaining useful life. The reduction is
treated as an impairment loss and is recognized in the Profit and Loss Account. If, at the balance sheet
date there is an indication that a previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the asset is reflected at the reassessed recoverable amount. Impairment losses
previously recognized are accordingly reversed.
f) Investments: Investments are classified as long term or current investments. Long term investments are
stated at cost and provision for diminution in their value, other than temporary, is recorded in the books
of account. Current investments are stated at the lower of cost or fair value. 100 % Provision has been
made in case the realizable value is uncertain.
g) Revenue recognition: Revenue is recognized to the extent it is probable that the economic benefits will
flow to the Company and the revenue can be reliably measured.
Sale of goods: - Revenue from sale of goods is recognized when significant risks and rewards of
ownership of goods are transferred to the customers. Sales are net of sales return, free quantities
delivered and trade discounts.
Interest: - Interest income from deposits and others is recognized on accrual basis (i.e. time proportion
basis).
Construction Contract:-The Company follows complete contract method of accounting in respect of its
construction activity. Under this method, the profit on unit sold is recognized only when the work in
respect of the relevant unit is completed or substantially completed which is determined on technical
estimations and the underlying sale deed is executed.
Profit on sale of investment: - Profit on sale of investment is recognized on the date of transaction of
sale and is computed with reference to the cost of investments.
h) Borrowing Costs: Borrowing costs attributable to the acquisition, construction or production of qualifying
assets are capitalized as part of cost of the asset. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other borrowing costs are charged to
revenue in the year in which they are incurred.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number of shares outstanding during the year are adjusted
for the effects of all dilutive potential equity shares. The Weighted average no of Equity shares outstanding
during the year after adjusted for the events of bonus issue element in a right issue to equity
shareholders, share split and reserve share split (consolidation of shares).
j) Operating leases: Leases of assets under which all the risks and rewards of ownership are effectively
retained by the lessor are classified as operating leases. Lease payments under operating leases are
recognized as an expense on a straight-line basis over the lease term in accordance with Accounting
Standard 19 (AS 19) - Leases as notified under the Companies (Accounting Standards) Rules, 2006, as
amended.
k) Cash & cash equivalent: Cash and cash equivalents in the balance sheet comprise cash at bank and in
hand and short-term investments with an original maturity of three months or less.
l) Cash Flow Statement: Cash Flows are reported using indirect method, whereby profit before tax is
adjusted for efforts of transactions of non cash nature and any deferral or accruals of any past or future
cash receipts or payments. The Cash Flows from regular revenue generating, financing and investing
activity of the Company segregated.
n) Taxes on Income: Tax expense comprises of current tax and deferred tax.
Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance
with the Indian Income Tax Act 1961. Deferred income taxes are recognized for the future tax
consequences attributable to timing differences between the financial statement income and taxable
income for the year. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in income using the tax rates and tax laws that have been enacted or substantively enacted by the
balance sheet date.
Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable
certainty that sufficient future taxable income will be available against which such deferred tax assets can
be realized. Unrecognized deferred tax assets of earlier periods are re-assessed and recognized to the
extent that it has become reasonably certain that future taxable income will be available against which
deferred tax assets can be realized.
i) Possible obligations which will be confirmed only by future events not wholly within the control of the
Company or,
ii) Present obligations arising from past events where it is not probable that an outflow of resources will
be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be
made.
Contingent Assets are not recognized in the financial statements since this may result in the
recognition of income that may never be realized.
i). Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by
applying the exchange rate between the reporting currency and the foreign currency at the date of the
transaction to the foreign currency amount.
ii). Conversion : Foreign currency monetary items are converted to reporting currency using the closing
rate. Non monetary items denominated in a foreign currency which are carried at historical cost are
reported using
the exchange rate at the date of the transaction; and non-monetary items which are carried at fair
value or any other similar valuation denominated in a foreign currency is reported using the exchange
rates that existed when the values were determined.
iii). Exchange Differences: Exchange differences arising on the settlement of monetary items or on
reporting company’s monetary items at rates different from those at which they were initially
recorded, are recognized as income or expense in the year in which they arise except those arising
from investments in non-integral operations.
iv). Forward Exchange Contract: In case of forward Exchange contract, difference between the forward
rates and the exchange rate on the date of transaction is recognized as expenses or income over the
life of the contract. Exchange difference on such contract is recognized in the statement of profit and
loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or
renewal of forward exchange contract is recognized as income or expenses for the year.
q) Government Grants: Government grants are recognized when there is reasonable assurance that the
group will comply with the condition attaching to them and grants will be received. Revenue grants
are recognized in the statement of Profit and loss account. Capital grants relating to Specific Fixed Assets
are reduced from gross value of respectively fixed assets and other grant are credited to capital reserve
account.
r) Employee Stock Option Scheme: The Company will follow the accounting guidelines which have been
issued by Securities and Exchange Board of India under Section 11 of the Securities and Exchange board
of India Act’1992 and SEBI (Employee Stock option Scheme and Employee Stock Purchase Scheme)
Guidelines 1999.
Shares outstanding at the beginning of the year 101,039,370 101,039,370 10,103,937 101,039,370
Shares outstanding at the end of the year 101,695,870 101,695,870 10,103,937 101,039,370
Equity shares: - The Company has only one class of Equity having a par value Rs. 1.00 per share. Each
shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend. In
the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the company
after distribution of all preferential amounts, in proportion to their shareholding.
Sub-Division (Stock-Split) of Equity Shares:-During the year, the Board of directors of the company,
authorized Stock split in the Face or stated value of shares from Rs. 10/- Per share to Rs. 1/- Per share. The
Company announced March 31st, 2014 as record date for the Purpose of face value split of shares from Rs.10
Per share to Rs. 1 per share. Company has also issued the Shares under Employee Stock Option Plan on 31st
march2014.
The Company has formulated an Employee’s stock option scheme as per Note No 43. The Scheme provides that
Employees are granted options to acquire the Equity Shares of the company that vests in graded manner. The
options may be exercised within a Specified Period. The options are granted at the closing market price
prevailing on the stock exchange, immediately prior to the grant. The Shares issued under ESOP are as
follows:
PARTICULARS NO OF OPTIONS
Option Granted 3,695,000
Pricing Formula Face Value
Options Outstanding, beginning of the Year 2,615,000
No of Options given to Employees in First year (30% of total no of options) 784,500
Less-No of Options Exercised by Employees 656,500
No of Options Forfeited by Employees 1,28,000
Options Outstanding, end of the year 1,830,500
CASH CREDIT
The Company is availing a cash credit (Hypo) limit of Rs. 2,700 Lacs which include PCFC Limit of RS 500 Lacs
from Oriental Bank of Commerce against Hypothecation of stock, receivable, advance to suppliers and other
current assets on pari passu basis with Bank of Baroda. No DP against stock and Book debts exceeding 180
days. The rate of interest is Bank Base Rate + 2.00% which at present is 12.25% p.a. Further the Company is
also availing LC (Import) DA/DP basis on Fund Based Limit of Rs. 1,800 Lacs for procurement of Raw Material
and spares. Cash Margin is 20% in the shape of FDR.
The Company is also availing Cash Credit limit of Rs. 1,320 Lacs from Bank of Baroda with a sublimit FCNR
(B) of Rs. 990 Lacs & Sub limit of FBP/FBD of Rs. 330 Lacs under the same Cash Credit limit. The limit is
secured by way of hypothecation of stock, receivables & other current assets on pari passu basis on the OBC.
DP shall be permitted against receivable upto 180 days. Margin is 25% & Rate of interest is BR+3.00 %. Further
the Company is availing Non Fund Based LC (Import/Inland/DP/DA/BG). Buyers Credit of Rs. 800 Lcas for
procurement of raw material and spares. Cash Margin is 20% in the shape of FDR.
HDFC - Vehicle Loan (Agreement No 24353585) was taken during 2013 year and carries interest @15.65%
per annum. The Loan is repayable in 36 installments of Rs. 22837 each along with interest from the date of
Loan. The loan is secured by hypothecation of car of the company.
HDFC - Vehicle Loan (Agreement No 25941597) was taken during 2013 year and carries interest @15.65%
per annum. The Loan is repayable in 36 installments of Rs. 17,941 each along with interest from the date of
Loan. The loan is secured by hypothecation of car of the company.
ICICI Loan No - LADEL00017599702 was taken during 2010 year and carries interest @9.00% per annum.
The Loan is repayable in 57 installments of Rs. 61,560 each along with interest from the date of Loan. The loan
is secured by hypothecation of car of the company.
ICICI Loan No - LADEL00026826516 was taken during 2013 year and carries interest @10.74% per annum.
The Loan is repayable in 36 installments of Rs. 10,086 each along with interest from the date of Loan. The loan
is secured by hypothecation of car of the company.
ICICI Loan No - LADEL00026874591 was taken during 2013 year and carries interest @9.09% per annum.
The Loan is repayable in 36 installments of Rs. 111,450 each along with interest from the date of Loan. The loan
is secured by hypothecation of car of the company
Term Loan-1 (Bank of Baroda) Closing balance Rs. 86.85 Lacs & Term Loan –II (Bank of Baroda) Closing
balance Rs. 42.16 Lacs. The Term Loan is secured on the Plant and Machinery and Land and Building located
at G-24-29 & 30, RIICO Industrial Area, Vigyan Nagar, Shahjahanpur, Dist. Alwar, Rajasthan owned by Vikas
GlobalOne Limited. The term loan has been taken over from the existing loan of ICICI Bank Limited. The Rate of
Interest is BR+2.75%. The term loan is repayable in equal monthly installment of Rs. 8.56 Lacs. The Period of
Maturity for the TL-I from the Balance Sheet date is 9 months and for the TL-II 16 months.
Term Loan-III (Oriental Bank of Commerce) Closing balance limits Rs. 180.53 Lacs. The Term Loan is secured
on the Plant and Machinery and Land and Building located at G-24-29 & 30, RIICO Industrial Area, Vigyan
Nagar, Shahjahanpur, Dist. Alwar, Rajasthan owned by Vikas GlobalOne Limited. The loan was sanctioned on
reviewed on 8.02.2014 on the existing term and conditions. . The Loan will be repayable in Equal Installments
of Rs. 4.17 lacs per month. The rate of interest shall be BR+ 2%+.5%. The Period of Maturity from the Balance
Sheet date is 41 months.
FIXED ASSETS
Total (A) 22,72,82,893 5,19,80,030 - 27,92,62,923 4,97,96,888 1,84,69,719 - 6,82,66,607 21,09,96,317 17,74,86,005
Total(Current year) 23,02,04,357 5,19,80,030 - 28,21,84,387 5,15,49,767 1,90,54,012 - 7,06,03,779 21,15,80,609 17,86,54,590
As on 31.03.2013 21,51,51,898 1,64,77,410 14,24,95 23,02,04,357 3,47,30,781 1,68,18,986 - 5,15,49,767 17,86,54,590 18,04,21,117
1
PARTICULARS AMOUNT
Moonlite Technochem Private Limited 27,063,030
Sigma Plastic Industries 10,204,423
Vikas Polymers (India) 8,256,313
36,428,625 27,193,251
b) Lease commitment: The Company has taken various premises on operating leases. The lease rental of
Rs. 1,281,500/- (Previous year Rs. 1,470,000/-) has been charged to Profit and Loss Account for the
year ended March 31, 2014. The underlying agreements are executed for a period generally ranging
from one year to three years, renewable at the option of the Company and the lessor. There are no
restrictions imposed by such leases and there are no sub leases
The minimum rental payments to be made in future in respect of these operating leases are as under:
(In Rupees)
MINIMUM LEASE RENTALS AS AT 31-03-14 AS AT 31-03-13
Within one year 1,074,000 1,470,000
Later than one year, not later than five years 294,000 -
Total 1,368,000 1,470,000
30) There is no significant event that has been taken place after the date of Balance Sheet.
31) There is a Contingent Liability in form of Bank Guarantee of Rs. 1,412,200/- and Rs. 157,330,551/- in
respect of LC and duty saved against advance license is Rs. 53,495,888/-.The Company has given
Corporate Guarantee to the Bank of RS 160,000,000/-and 60,000,000/- for Moonlite Technochem Private
Limited which is 100% subsidiaries of Vikas Globalone Limited and Sigma Plastic Industries which is a
Partnership firm in which Vikas Globalone Limited holds 75% Shares.
Company has filed Civil Suit against ADM Agro Industries Kota and Akola Limited supplier of Soya Bean
Oil in High Court Delhi case No-CS OS No-198/214 of Amounting Rs.9, 961,516/- due to poor supply of
soya bean oil. Company has suffered a loss due to such poor quality of material supplied by them and
non recovery of money from debtors and it also affect goodwill of the Company. The ADM Agro Industries
Kota and Akola Limited is also filed winding up Petition against company in High Court case no CO PET
No-64/2014 due to non-payment of Rs 4,115,664/- along with interest at the rate of 18% from the due
date of payment.
The above business segments have been identified and reported considering:
- The nature of the services
- The related risk and returns
- The internal financial reporting systems
Purchase directly attributable to segments is reported based on items that are individually identifiable to
that segment.
Common allocable costs are allocated to each segment to that common cost.
(In Rupees)
PARTICULARS AS AT 31-03-14 AS AT 31-03-13
Segment Revenue
Chemical Division 1,711,408,554 1,576,180,791
Real Estate Division 4,500,000 4,626,569
Total 1,715,908,554 1,580,807,360
Segment Expenditure
Chemical Division 1,610,994,331 1,499,850,649
Real Estate Division 22,000 1,172,994
Total 1,611,016,331 1,501,023,643
Segment Results
Chemical Division 100,414,223 76,330,142
Real Estate Division 4,478,000 3,453,575
104,892,223 79,783,717
Less : Interest 64,234,270 44,627,649
Profit before Tax 40,657,953 35,156,068
Capital Employed
Chemical Division 376,516,000 344,369,770
Real Estate Division 24,357,000 24,356,621
Total 400,873,000 368,726,391
Geographical Revenue
Domestic Revenue 1,425,868,198 1,387,100,864
Export Revenue 290,040,356 193,706,496
Total Revenue 1,715,908,554 1,580,807,360
Segment revenue, results, assets and liabilities include amounts identifiable to each segment and amounts
allocated on a reasonable basis based on their relationship to the operating activities of the segment.
35) Goodwill: Goodwill arises upon the acquisition of subsidiaries, associates and Joint venture. Goodwill is
amortised over the 5 years from the financial year in which the acquisition is accounted for. During the year
a sum of Rs 584,393/- has been amortized and has been shown under the schedule of Fixed Assets
“Schedule No-11”.
36) In the opinion of the Board of Directors of the Company, all Current Assets, Loans and Advances appearing
in the balance sheet as at March 31, 2014 have a value on realization in the ordinary course of the
Company’s business at least equal to the amount at which they are stated in the balance sheet. Certain
balances shown under current assets, current liability, loans and advances and balances with banks,
are subject to confirmation / reconciliation.
37) In the opinion of the Board of Directors, no provision is required to be made against the recoverability of
these balances except provided.
During the year ended 31st March 2014, the Company has made a provision of Rs 1,376,240/- in respect of
provision for gratuity and defined benefits as per actuarial valuation made as per AS-15.
The Company has taken Group Gratuity Scheme for the employees from the LIC of India. Contribution
made by the during the year is Rs 344,060/- and total contribution payable is Rs 1,376,240/- and balance
amount is payable in other 3 installments in next Financial Year.
39) As per the best estimate of the management, no provision is required to be made as per Accounting
Standard 29 (AS 29) Provisions, Contingent Liabilities and Contingent Assets as notified under the
Companies (Accounting Standards) Rules, 2006, as amended, in respect of any present obligation as a
result of a past event that could lead to a probable outflow of resources, which would be required to settle
the obligation.
41) Disclosures in respect of Accounting Standard (AS) 18 “Related Party Disclosures” as notified under the
Companies (Accounting Standards) Rules, 2006, as amended:
The following transactions were carried out during the year with related parties in the ordinary course of
business:
(In Rupees)
Other
KMP &
NATURE OF TRANSACTION SUBSIDIARY ASSOCIATES Relates TOTAL
RELATIVE
Parties
Sales 27,063,030 10,204,423 - 8,256,313 45,523,766
Purchase 142,966,557 12,255,720 - 6,464,000 161,686,277
Investment in shares 27,631,800 18,505,845 - 46,137,645
Rent Paid - - 1,196,500 1,196,500
Director Remuneration - - 360,000 360,000
Unsecured Loan - - - -
Receipt and Payment - - - 26,62,300 26,62,300
TOTAL 197,661,387 40,965,988 1,556,500 17,382,613 257,566,488
In accordance with AS 18, disclosures in respect of transactions with identified related parties are given
only for such period during which the relationship existed.
Net Profit/(Loss) After Tax as per Profit & Loss Account (in Rs) 33,245,537 34,228,273
Weighted average no of shares outstanding during the year 101,041,169 101,039,370
Basic and diluted Earnings Per Share (in Rs)* .33 .34
Nominal value per Equity Share (in Rs)* 1/- 1/-
The breakup of Deferred Tax Liabilities into major components as at March 31, 2014 is as under:
(In Rupees)
PARTICULARS AS AT 31-03-14 AS AT 31-03-13
DEFERRED TAX LIABILITIES
Arising on account of temporary differences due to:
Excess of Book WDV of Fixed Assets over Tax WDV of Fixed 3,520,136 3,401,974
Assets
3,520,136 3,401,974
Total
44) In the AGM of the Company held on 28th September 2011, the members of the company passed a resolution
for introducing a Stock Compensation Plan called the Employees Stock Option scheme,2011(ESOS 2011),
for the benefit of employees of the Company. The resolution also accorded approval for the Board of
Directors, to formulate the Scheme as per board parameters outlined in the resolution, either directly or
through a committee. Accordingly, a committee of directors called Compensation committee was
constituted. The Scheme has been approved by the Stock exchange on 7th May 2012 (NSE) and 2nd May
2012 (BSE). The Compensation Committee at its meeting held on 2nd June 2012 has granted Stock Option
to the eligible employees and accordingly the option will be granted shall vest over a period of 3 years, or as
may be decided by the CC, as per schedule as under
There shall be a minimum period of one year between grant date and the vesting period for the first lot of
vesting of granted options. The interval between the subsequent lots shall be one year.
During the year the Company has granted shares on compensation meeting held on 31st March 2014 under
Employee stock option as per scheme made by company in year 2011(ESOP 2011). The no of shares vested
by allottees under scheme is 656,500 shares of Rs 1/- (Face Value of Rs.10 each). Details are as follows
PARTICULARS NO OF OPTIONS
Option Granted 3,695,000
Pricing Formula Face Value
Options Outstanding, beginning of the Year 2,615,000
No of Options given to Employees in First year (30% of total no of options) 784,500
Less-No of Options Exercised by Employees 656,500
No of Options Forfeited by Employees 1,28,000
Options Outstanding, end of the year 1,830,500
46) The scheme of amalgamation was filed under section 391 read with section 394 of the companies Act 1956
w.e.f. April 1, 2007 for the amalgamation of the following three transferor companies a) Hulchul
International Private Limited, b) Vikas Utilities Private Limited, c) South Delhi Projects Private Limited, With
the transferee company Vikas Globalone Limited (formally known as Vikas Profin Limited).
The same has been approved by the High Court wide order no 18457/1 dated October 17, 2008. The
amalgamation has been accounted for the manner specified in the Scheme, The Surplus of Rs. 965,934/-
arising out of amalgamation is shown under the head Capital Reserve Account.
47) During the year Company has transferred a sum of Rs 75.51/- Lacs relating to Employee Compensation
Expenses to prior period expenses being expenses relating to previous year.
48) Additional information pursuant to the provision of paragraph 3, 4, 4A, 4B, 4C and 4D of Part II of Schedule
VI of the Companies Act, 1956 to the extent applicable are as follows:-
c. Expenses incurred in foreign currency during the year ended March 31, 2014 aggregates to:-
(In Rupees)
PARTICULARS AS AT 31-03-14 AS AT 31-03-14
Expenditures:-
Purchase 410,090,370 379,590,659
Foreign Travelling 544,254 1,693,627
TOTAL 410,634,624 381,284,286
e. CIF value of export made during the year included in the sales amounting Rs. 290,040,356.32/-
(Previous Year: Rs. 193,706,496/-)
50) Previous year’s figures have been regrouped, where necessary to confirm with current year’s classification.
Management is responsible for the preparation of these Consolidated financial statements that
give a true and fair view of the financial position, financial performance and cash flows of the
Company in accordance with the Accounting Standards notified under the Companies Act,
1956 ("the Act") read with the General Circular 15/2013 dated 13th September’ 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the Companies Act’ 2013 and in
accordance with the accounting principles generally accepted in India.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Standards on Auditing issued by the Institute
of Chartered Accountants of India. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the Company's preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances.
Opinion
In our opinion and to the best of our information and according to the explanations given to us,
the financial statements give the information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Consolidated Balance Sheet, of the state of affairs of the Company as
at March 31, 2014;
(c) in the case of the Consolidated Cash Flow Statement, of the cash flows for the year ended
on that date.
1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order") issued by the
Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in
the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
a. we have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books
c. the Consolidated Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of account;
d. in our opinion, the Consolidated Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified under
the Act read with the General Circular 15/2013 dated 13th September 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,
2013;
Revenue
Vikas GlobalOne Limited (VGL) is a Delhi based professionally managed company incorporated on 30th
November, 1984 under the Companies Act, 1956, having its registered office at Vikas House, 34/1, East
Punjabi Bagh, New Delhi-110026 and is actively engaged in the business of Manufacturing and
Distribution of Specialty Polymers Compounds and Additives. The company is listed in National Stock
Exchange of India (NSE), Bombay Stock Exchange (BSE) and Delhi Stock Exchange (DSE).
The company is engaged in the business of manufacturing and distribution of high end products used in
Agricultural Pipes, Auto Parts, Wires and Cables, Artificial Leather, Footwear, Organic Chemicals,
Polymers, Pharmaceuticals and Packaging industries while alongside acting as distributor of global
conglomerates with niche in specialty chemicals and polymers.
Manufacturing plants of the company are spread in various geographical locations across India, in the
state of J&K and Rajasthan. This has been done keeping in mind the strategic and location advantages
with regard to availability of raw material, tax incentives, subsidy grants as well as market potential for
finished goods. These industrial units have speedy connectivity to Road, Rail and Air transport. The
company has built the plants with the best of the machineries and technical knowhow available from the
world’s leading suppliers. The manufactured products of the company have been well received in the
market and have further scope of greater development with increased production capacities. The products
manufactured by the Company are environmental friendly.
Moonlite Technochem Private Limited was incorporated on 19th November 1995 with the name of
Akshatha Management Consultants Private Limited. Thereafter the name of the company changed to
Akshatha Services Private Limited vide a fresh certificate of incorporation issued by Registrar of Companies
dated 29th May 2001 and then to Moonlite Technochem Private Limited vide a fresh certificate of
incorporation issued by Registrar of Companies dated 29th day of December 2008. The registered office of
the company is located at A-520, Pocket-III, Paschim Puri, and New Delhi-110063. The company is not
listed in any Stock Exchange. It is wholly own subsidiary of Vikas GlobalOne Limited. Presently company is
engaged in the business of Trading in Specialty chemicals and compounds.
Sigma Plastic Industries is the Partnership firm (where Vikas Globalone Limited holds 75% Share) engaged
in the business of manufacturing high speed specialty plastic compound. The firm owns a manufacturing
plant located at Industrial Growth Centre, Phase – I, SIDCO Complex, Dist – Samba – 184121. It is a
subsidiary Enterprise of the Vikas GlobalOne Limited. The firm has sound financial track records.
a. Basis of presentation:
These financial statements have been prepared in accordance with the generally accepted accounting
principles in India under the historical cost convention on accrual basis. These financial statements have
been prepared to comply in all material aspects with the accounting standards notified under Section
211(3C) (which continues to be applicable in terms of General circular 15/2013 dated September 13,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013), other
relevant provisions of the Companies Act, 1956(to the extent applicable), the provisions of Companies
Act, 2013 (to the extent notified) & guidelines issued by the SEBI. The accountings policies have been
consistently applied by the Company are consistent with those used in the previous year.
The Consolidated Financial Statements are prepared in accordance with Accounting Standard 21 (AS 21)
on Consolidated Financial Statements as notified under the Companies (Accounting Standards) Rules,
2006, as amended. Reference in these notes to the Company, Holding Company, Companies or Group
shall mean to include Vikas Globalone Limited (“VGL”) (“The Company”) or any of its subsidiaries and
associates, unless otherwise stated.
c. Principles of Consolidation:
The Consolidated Financial Statements comprise of the Financial Statements of Vikas Globalone Limited
(“Parent Company”) and it’s Subsidiary Enterprises and associated concerns. The Consolidated Financial
Statements are prepared according to uniform accounting policies, in accordance with accounting
principles generally accepted in India.
The Consolidated Financial Statements are combined on a line-by-line basis by adding together the book
values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group
balances and intra-group transactions resulting in unrealised profits or losses in accordance with
Accounting Standard 21 (AS 21) Consolidated Financial Statements as notified under the Companies
(Accounting Standards) Rules, 2006, as amended.
d. Minority Interest:
Minority interest is the net worth of consolidated subsidiaries consists of the amount of equity attriable
to the Minority shareholders at the date on which investments in the subsidiary companies are made
and further movement in their shares in the equity subsequent to the date of investments.
The difference between the cost of investment in the subsidiaries and the net assets at the time of
acquisition of shares in the subsidiaries is recognised in the Consolidated Financial Statements as
Goodwill or Capital Reserve as the case may be. Goodwill/Capital Reserve represents the difference
between the Company’s share in the net worth of subsidiaries and the cost of acquisition at each point
of time of making the investment in the subsidiaries. For this purpose, the Company’s share of net
worth is determined on the basis of the latest financial statements of such subsidiaries, prior to the
acquisition, after making necessary adjustments for material events between the date of such financial
statements and the date of respective acquisition.
The significant accounting policies adopted by the Company, in respect of the financial statements are
set out below.
g. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of the financial statements and the
results of operations during the reporting year end. Although these estimates are based upon
management’s best knowledge of current events and actions, actual results could differ from these
h. Inventories
i. Prior Period Items: Significant items of Income and Expenditure which relates to prior
accounting period are accounted in the statement of profit and loss under the head “prior period
items” other than those occasioned by events occurring during or after the close of the year and
which are treated as relatable to the current year.
Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment of losses if
any. The Company capitalizes all direct costs relating to the acquisition and installation of fixed assets.
Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date and the
cost of fixed assets not ready to use before such date are disclosed under ‘Capital advances’.
Depreciation on fixed assets is computed using written down value method, as per the rates and as
per the manner prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on additions / deletions to fixed assets is provided on pro-rata basis from/till the date
the asset is put to use / discarded. Individual assets costing less than Rs. 5,000 are fully depreciated
in the year of purchase.
k. Impairment of Assets:
At each balance sheet date, the Company assesses whether there is any indication that an asset may
be impaired, based on internal or external factors. If any such indication exists, the Company
estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount
of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the
carrying amount is reduced to its recoverable amount. In assessing value in use, the estimated future
cash flows are discounted to their present value at the weighted average cost of capital. After
impairment, depreciation is provided on the revised carrying amount of the asset over its remaining
useful life. The reduction is treated as an impairment loss and is recognized in the Profit and Loss
Account. If, at the balance sheet date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is reflected at the reassessed
recoverable amount. Impairment losses previously recognized are accordingly reversed.
Investments are classified as long term or current investments. Long term investments are stated at
cost and provision for diminution in their value, other than temporary, is recorded in the books of
account. Current investments are stated at the lower of cost or fair value. 100 % Provision has been
made in case the realizable value is uncertain.
m. Revenue recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured.
Sale of goods: - Revenue from sale of goods is recognized when significant risks and rewards of
ownership of goods are transferred to the customers. Sales are net of sales return, free quantities
delivered and trade discounts.
Interest: - Interest income from deposits and others is recognized on accrual basis (i.e. time proportion
basis).
Profit on sale of investment: - Profit on sale of investment is recognized on the date of transaction of
sale and is computed with reference to the cost of investments.
n. Borrowing Costs:
Borrowing costs attributable to the acquisition, construction or production of qualifying assets are
capitalized as part of cost of the asset. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing costs are charged to revenue in the
year in which they are incurred.
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable
to equity shareholders and the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
p. Operating leases
Leases of assets under which all the risks and rewards of ownership are effectively retained by the
lessor are classified as operating leases. Lease payments under operating leases are recognized as an
expense on a straight-line basis over the lease term in accordance with Accounting Standard 19 (AS
19) - Leases as notified under the Companies (Accounting Standards) Rules, 2006, as amended.
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term
investments with an original maturity of three months or less.
Cash Flows are reported using indirect method, whereby profit before tax is adjusted for efforts of
transactions of non cash nature and any deferral or accruals of any past or future cash receipts or
payments. The Cash Flows from regular revenue generating, financing and investing activity of the
Company segregated.
t. Taxes on Income
Current income tax is measured at the amount expected to be paid to the tax authorities in accordance
with the Indian Income Tax Act 1961.
Deferred income taxes are recognized for the future tax consequences attributable to timing differences
between the financial statement income and taxable income for the year. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in income using the tax rates and tax laws
that have been enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable
certainty that sufficient future taxable income will be available against which such deferred tax assets
can be realized. Unrecognized deferred tax assets of earlier periods are re-assessed and recognized to
the extent that it has become reasonably certain that future taxable income will be available against
which deferred tax assets can be realized.
Minimum Alternative Tax(MAT) paid in accordance with the Tax Laws in India, which give rise to future
economic benefits in the form of adjustment of future income tax liability is considered as an asset if
there is convening evidence that the company and its subsidiary will pay normal income tax after the
tax holiday period. Accordingly mat is recognized as an assets in the Balance Sheet when the asset can
be measured and it is probable that the future economic benefits associated with.
Provisions are recognized only when there is a present obligation, as a result of past events, and when
a reliable estimate of the amount of obligation can be made. Provisions are not discounted to its
present value and are determined based on management estimate required to settle the obligation at
i) Possible obligations which will be confirmed only by future events not wholly within the control of
the Company or,
ii) Present obligations arising from past events where it is not probable that an outflow of resources
will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot
be made.
Contingent Assets are not recognized in the financial statements since this may result in the
recognition of income that may never be realized.
As stipulated in Accounting Standard 11, the effects of changes in foreign exchange rates, notified
under the Companies (Accounting Standards) Rules, 2006, as amended.
w. Government Grants:
Government grants are recognized when there is reasonable assurance that the group will comply with
the condition attaching to them and grants will be received. Revenue grants are recognized in the
statement of Profit and loss account. Capital grants relating to Specific Fixed Assets are reduced from
gross value of respectively fixed assets and other grant are credited to capital reserve account.
The Company will follow the accounting guidelines which have been issued by Securities and Exchange
Board of India under Section 11 of the Securities and Exchange board of India Act’1992 and SEBI
(Employee Stock option Scheme and Employee Stock Purchase Scheme) Guidelines 1999.
Reconciliation of the shares outstanding at the beginning and the end of the reporting year
PARTICULARS AS AT 31-03-14 AS AT 31-03-13
No of Shares Amount No of Shares Amount
Shares outstanding at the beginning of the year 10,103,937 101,039,370 10,103,937 101,039,370
Shares outstanding at the end of the year 101,695,870 101,695,870 10,103,937 101,039,370
Equity shares: - The Company has only one class of Equity having a par value Rs. 1.00 per share. Each
shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend. In
the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the company
after distribution of all preferential amounts, in proportion to their shareholding.
Sub-Division (Stock-Split) of Equity Shares:-During the year, a Stock Split occurred when a Board of
directors of the company, authorize a change in the Face or stated value of shares from Rs. 10/- Per share to
Rs. 1/- Per share. The Company announced a record date of March 31st, 2014 for the Purpose of face value
split of shares from Rs.10 Per share to Rs. 1 per share. Company has also issue the Shares under Employee
Stock Option Plan on 31st march2014.After the stock split and Issue of shares under ESOP, the new face value
of the shares is Rs. 1/- each
PARTICULARS NO OF OPTIONS
Option Granted 3,695,000
Pricing Formula Face Value
Options Outstanding, beginning of the Year 2,615,000
No of Options given to Employees in First year (30% of total no of options) 784,500
Less-No of Options Exercised by Employees 656,500
No of Options Forfeited by Employees 1,28,000
Options Outstanding, end of the year 1,830,500
Capital Reserves*
Opening Balance 965,934 965,934
Add: Addition during the year - -
Less: Deletion during the year - -
Closing Balance 965,934 965,934
Securities Premium Account
Opening Balance 69,500,000 69,500,000
Add: Addition during the year -
The Company is availing a cash credit (Hypo) limit of Rs. 2,700 Lacs which include PCFC Limit of RS 500 Lacs
from Oriental Bank of Commerce against Hypothecation of stock, receivable, advance to suppliers and other
current assets on pari passu basis with Bank of Baroda. No DP against stock and Book debts exceeding 180
days. The rate of interest is Bank Base Rate + 2.00% which at present is 12.25% p.a. Further the Company is
also availing LC (Import) DA/DP basis on Fund Based Limit of Rs. 1,800 Lacs for procurement of Raw Material
and spares. Cash Margin is 20% in the shape of FDR.
The Company is also availing Cash Credit limit of Rs. 1,320 Lacs from Bank of Baroda with a sublimit
FCNR(B) of Rs. 990 Lacs & Sub limit of FBP/FBD of Rs. 330 Lacs under the same Cash Credit limit. The limit
is secured by way of hypothecation of stock, receivables & other current assets on pari passu basis on the
OBC. DP shall be permitted against receivable upto 180 days. Margin is 25% & Rate of interest is BR+3.00 %.
Further the Company is availing Non Fund Based LC (Import/Inland/DP/DA/BG). Buyers Credit of Rs. 800
Lcas for procurement of raw material and spares. Cash Margin is 20% in the shape of FDR.
The Company is availing a cash credit (Hypo) limit of Rs. 800.00 Lacs with the sublimit of FCL of Rs. 300.00
Lacs from Union Bank of India against Hypothecation of stock and Book debts
The rate of interest is Bank Base Rate + 3.25% which works out to be 13.25% and Margin is 25%.Further
Further the Company is availing Non Fund Based LC (Import/Inland/DP/DA/BG). Buyers Credit of Rs. 700.00
Lacs against Stocks/ Receivable arising under LC transactions & Pledge of Term Deposit Receipts\
Further the limit is secured on following Collateral Properties:
1. EM L&B at Katani No. 341, Plot No. WZ-47-A Basai Dara Pur, New Delhi in the name of Sh. Jai Hind
Kumar Gupta
2. EM property out of Kasra No 142/704, Extended Lal Dora Abadi of Village Kanjhawala, Delhi-81 in the
name of Smt. Seema Garg
3. EM of flat No. 6(1st Floor) on Plot No. 1/34, Punjabi Bagh (E), New Delhi in the name of Smt. Seema Garg.
4. EM of Lal Dora Land plot No. 749 (800 Sq Yds), Kh No. 142/749, Village Kanjawala, in the name of Sh.
Vivek Garg
5. EM of flat No. GF-1 (GF) on plot no. 1/34, Punjabi Bagh (East) New Delhi in the name of Smt. Seema Garg.
The Firm is availing a cash credit (Hypo) limit of Rs. 600.00 Lacs from Oriental Bank of Commerce against
Hypothecation of stock of raw materials, stock in progress, finished goods, stocks and spares, receivables and
other current assets. No DP against stocks and receivables older than 180 days. The rate of interest is Bank
Base Rate + 3.50% which works out to 13.75% and Margin is 25%.
HDFC - Vehicle Loan (Agreement No 24353585) was taken during 2013 year and carries interest @15.65%
per annum. The Loan is repayable in 36 installments of Rs. 22837 each along with interest from the date of
Loan. The loan is secured by hypothecation of car of the company.
HDFC - Vehicle Loan (Agreement No 25941597) was taken during 2013 year and carries interest @15.65%
per annum. The Loan is repayable in 36 installments of Rs. 17,941 each along with interest from the date of
Loan. The loan is secured by hypothecation of car of the company.
HDFC - Vehicle Loan (Agreement No 26670813) was taken during 2014 year and carries interest @15.65%
per annum. The Loan is repayable in 36 installments of Rs. 29,752 each along with interest from the date of
Loan. The loan is secured by hypothecation of car of the company.
ICICI Loan No - LADEL00017599702 was taken during 2010 year and carries interest @9.00% per annum.
The Loan is repayable in 57 installments of Rs. 61,560 each along with interest from the date of Loan. The loan
is secured by hypothecation of car of the company
ICICI Loan No - LADEL00026826516 was taken during 2013 year and carries interest @10.74% per annum.
The Loan is repayable in 36 installments of Rs. 10,086 each along with interest from the date of Loan. The loan
is secured by hypothecation of car of the company.
ICICI Loan No - LADEL00026874591 was taken during 2013 year and carries interest @9.09% per annum.
The Loan is repayable in 36 installments of Rs. 111,450 each along with interest from the date of Loan. The
loan is secured by hypothecation of car of the company.
ICICI Loan No - LADEL00026622448 was taken during 2013 year and carries interest @10.77% per annum.
The Loan is repayable in 36 installments of Rs. 48,510 each along with interest from the date of Loan. The loan
is secured by hypothecation of car of the company
Term Loan-1 (Bank of Baroda) Closing balance Rs. 86.85 Lacs & Term Loan –II (Bank of Baroda) Closing
balance Rs. 42.16 Lacs. The Term Loan is secured on the Plant and Machinery and Land and Building located
at G-24-29 & 30, RIICO Industrial Area, Vigyan Nagar, Shahjahanpur, Dist. Alwar, Rajasthan owned by Vikas
GlobalOne Limited. The term loan has been taken over from the existing loan of ICICI Bank Limited. The Rate of
Interest is BR+2.75%. The term loan is repayable in equal monthly installment of Rs. 8.56 Lacs. The Period of
Maturity for the TL-I from the Balance Sheet date is 9 months and for the TL-II 16 months.
Term Loan-III (Oriental Bank of Commerce) Closing balance Rs. 180.53 Lacs. The Term Loan is secured on the
Plant and Machinery and Land and Building located at G-24-29 & 30, RIICO Industrial Area, Vigyan Nagar,
Shahjahanpur, Dist. Alwar, Rajasthan owned by Vikas GlobalOne Limited. The loan was sanctioned on reviewed
on 8.02.2014 on the existing term and conditions. . The Loan will be repayable in Equal Installments of Rs. 4.17
lacs per month. The rate of interest shall be BR+ 2%+.5%. The Period of Maturity from the Balance Sheet date is
41 months.
*Advance from customers includes Rs. 3,971,859/- (Thirty Nine Lacs Seventy One Thousand Eight Hundred
and Fifty Nine) Vikas Ploymer (India) in which Director of Vikas Globalone Limited is also a Partner.
FIXED ASSETS
Tangible Assets
Leasehold Land - 5,43,36,463 54,53,128 - 5,97,89,591 - - - - 5,97,89,591 5,43,36,463
Building 5% 5,26,51,551 86,16,291 - 6,12,67,842 64,76,581 24,06,017 - 88,82,598 5,23,85,244 4,61,74,970
Plant & Machinery 13.90% 10,90,78,391 2,94,47,905 - 13,85,26,296 315,98,129 128,85,809 - 444,83,938 94,042,359 7,74,80,262
Furniture & Fittings 18.10% 22,36,506 9,35,707 - 31,72,213 10,88,653 3,06,484.73 - 13,95,137 17,77,076 11,47,853
Vehicles 25.89% 2,40,82,601 78,79,997 - 319,62,598 135,59,168 41,37,548 - 176,96,716 142,65,882 1,05,23,433
Office Equipments 13.91% 98,98,061 5,56,071 - 1,04,54,132 46,53,090 7,54,813 - 54,07,904 50,46,228 52,44,971
Computers & 40% 43,76,687 5,00,069 - 48,76,756 31,65,074 5,88,565 - 37,53,639 11,23,117 12,11,613
Peripherals
Total (A) 25,66,60,260 5,33,89,168 - 31,00,49,428 6,05,40,695 2,10,79,236 - 816,19,931 22,84,29,498 19,61,19,565
Intangible Assets
Goodwill 29,21,464 - - 29,21,464 17,52,879 5,84,293 - 23,37,172 5,84,292 11,68,585
Total(Current Year) 25,95,81,724 5,33,89,168 - 31,29,70,892.4 622,93,574 2,16,63,529 - 839,57,102.84 22,90,13,790 19,72,88,149
As on 31st March 24,26,18,833 1,91,22,842 21,59,9 25,95,81,724 430,40,852 1,96,58,811 406089 622,93,574 19,72,88,150 19,95,77,981
2013 51
(In Rupees)
PARTICULARS OPENING PURCHASES CLOSING CONSUMPTION
Tin Alloy 9,311,482 62,382,848 9,334,140 62,360,190
Ethylhexyl Thiogycolate 7,889,219 2,432,083 2,938,856 7,382,446
Tinmate 261,417 102,804,532 1,463,413 101,602,536
Industrial Chemical-2EHTG 3,306,262 20,864,275 921,526 23,249,011
PVC Compound 13,305,176 46,681,124 - 59,986,300
TPR Compound 1,188,464 305,795,842 4,063,568 302,920,738
Hydrogen Peroxide 60%50 4,491,176 16,602,538 3,122,556 17,971,158
RSO Refined Soyabean Oil 7,423,739 89,539,853 139,035 96,824,557
Styrene Butadiene Copolymer 2,082,783 86,562,184 35,437,347 53,207,620
Thermal Plastic Elastomer 14,145,585 11,790,609 - 25,936,194
Methyl Chlori De Pure(Gas) 239,259 25,447,966 254,877 25,432,348
PVC Resin - 394,036 - 394,036
Styrene Butadiene Styrene - 9,989,051 - 9,989,051
Others 166,747,312 46,962,131 137,196,721 76,512,722
Grand Total 230,391,874 828,249,072 194,872,039 863,768,907
Purchase of Stock in Trade includes following transactions with the related party:
PARTICULARS AMOUNT
Vikas Polymers (India) 16,154,750
b. Lease commitment
The Company has taken various premises on operating leases. The lease rental of Rs. 1,316,000/-
(Previous year Rs. 1,565,750/-) has been charged to Profit and Loss Account for the year ended March
31, 2014. The underlying agreements are executed for a period generally ranging from one year to three
years, renewable at the option of the Company and the lessor. There are no restrictions imposed by
such leases and there are no subleases.
The minimum rental payments to be made in future in respect of these operating leases are as under:
(In Rupees)
MINIMUM LEASE RENTALS AS AT 31-03-14 AS AT 31-03-13
Within one year 1,074,000 1,565,750
Later than one year, not later than five years 294,000 --
Total 1,368,000 1,565,750
30) There is no significant event that has been taken place after the date of Balance Sheet.
31) There is a Contingent Liability in form of Bank Guarantee of Rs. 1,412,200/- and Rs. 203,452,803/-
in respect of LC and duty saved against advance license is Rs. 53,495,888/-. The Company has given
Corporate Guarantee to the Bank of RS 160,000,000/-and 60,000,000/- for Moonlite Technochem
Private Limited which is 100% subsidiaries of Vikas Globalone Limited and Sigma Plastic Industries
which is a Partnership firm in which Vikas Globalone Limited holds 75% Shares.
Company has filed Civil Suit against ADM Agro Industries Kota and Akola Limited supplier of Soya Bean
Oil in High Court Delhi case No-CS OS No-198/214 of Amounting Rs.9961516/- due to poor supply of
soya bean oil. Company has suffered a loss due to such poor quality of material supplied by them and
non recovery of money from debtors and it also affect goodwill of the Company. The ADM Agro Industries
Kota and Akola Limited is also filed winding up Petition against company in High Court case no CO PET
No-64/2014 due to non-payment of Rs 4,115,664/- along with interest at the rate of 18% from the due
date of payment.
The segment reporting of the company has been prepared in accordance with accounting standard (AS-17)
Accounting for Segment Reporting issued by The Institute of Chartered Accountant of India.
The Company has determined the following business segments as the primary segments for disclosure:
c. Chemical Division
d. Real estate Division
The geographical Segment consists of:
Domestic (Sales to customers located in India)
International (Sales to customers located outside India)
The above business segments have been identified and reported considering:
- The nature of the services
- The related risk and returns
- The internal financial reporting systems
Purchase directly attributable to segments is reported based on items that are individually identifiable to
that segment.
Common allocable costs are allocated to each segment to that common cost.
(In Rupees)
PARTICULARS AS AT 31-03-14 AS AT 31-03-13
Segment Revenue
Chemical Division 2,523,917,039 2,537,211,441
Real Estate Division 4,500,000 4,626,569
Total 25,284,17,039 2,541,838,010
Segment Expenditure
Chemical Division 2,389,910,091 2,436,991,079
Real Estate Division 22,000 1,172,994
Total 2,389,932,091 2,438,164,073
Segment Results
Chemical Division 134,006,948 100,220,362
Real Estate Division 4,478,000 3,453,575
138,484,948 103,673,937
Less : Interest 91,548,114 64,376,029
Profit before Tax 46,936,834 39,297,908
Capital Employed
Chemical Division 387,301,000 352,255,852
Real Estate Division 24,357,000 24,356,621
Total 411,658,000 376,612,473
Geographical Revenue
Domestic Revenue 2,237,981,407 2,348,131,514
Export Revenue 290,435,632 193,706,496
Total Revenue 2,528,417,039 2,541,838,010
34) Goodwill: Goodwill arises upon the acquisition of subsidiaries, associates and Joint venture.
Goodwill is amortized over the 5 years from the financial year in which the acquisition is accounted
for. During the year a sum of Rs 584393/- has been amortized and has been shown under the
schedule of Fixed Assets “Schedule No-11”.
35) The company had not received information from suppliers regarding their status under the “Micro,
Small and Medium Enterprises Development Act 2006” and accordingly no disclosure regarding
overdue outstanding of principal amount and interest thereon has been given.
36) In the opinion of the Board of Directors of the Company, all Current Assets, Loans and Advances
appearing in the balance sheet as at March 31, 2013 have a value on realization in the ordinary
course of the Company’s business at least equal to the amount at which they are stated in the
balance sheet. Certain balances shown under current assets, current liability, loans and advances
and balances with banks, are subject to confirmation / reconciliation.
37) In the opinion of the Board of Directors, no provision is required to be made against the
recoverability of these balances except provided.
During year ended March 31, 2014 the Company has contributed Rs. 300,692/- to provident fund under
defined contributions plan of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
During the year ended 31st March 2014, the Company has made a provision of Rs 1,376,240/- in respect
of provision for gratuity and defined benefits as per actuarial valuation made as per AS-15.
The Company has taken Group Gratuity Scheme for the employees from the LIC of India. Contribution
made by the during the year is Rs 344,060/- and total contribution payable is Rs 1,376,240/- and balance
amount is payable in other 3 installments in next Financial Year
39) As per the best estimate of the management, no provision is required to be made as per Accounting
Standard 29 (AS 29) Provisions, Contingent Liabilities and Contingent Assets as notified under the
Companies (Accounting Standards) Rules, 2006, as amended, in respect of any present obligation as
a result of a past event that could lead to a probable outflow of resources, which would be required
to settle the obligation.
41) Disclosures in respect of Accounting Standard (AS) 18 “Related Party Disclosures” as notified under
the Companies (Accounting Standards) Rules, 2006, as amended:
Names of related parties and description of relationship:
The following transactions were carried out during the year with related parties in the ordinary course of
business: (In Rupees)
Other
NATURE OF KMP &
SUBSIDIARY ASSOCIATES Relates TOTAL
TRANSACTION RELATIVE
Parties
Sales - 8,256,313 8,256,313
Purchase - 64,64,000 6,464,000
Investment in shares - - -
Rent Paid - - 1,196,500 - 1,196,500
Director Remuneration - - 820,000 - 820,000
Unsecured Loan 675,000 - 675,000
Receipt and Payment - - 26,62,300 26,62,300
TOTAL - 2,691,500 17,382,613 20,074,113
In accordance with AS 18, disclosures in respect of transactions with identified related parties are given
only for such period during which the relationship existed.
Basic earnings per share is computed by dividing the net profit/(loss) attributable to equity shareholders,
for the year by the weighted average number of equity shares outstanding during the year. (In
Rupees)
PARTICULARS AS AT 31-03-14 AS AT 31-03-13
Net Profit/(Loss) After Tax as per Profit & Loss Account (in Rs) 36,143,939 36,685,338
Weighted average no of shares outstanding during the year 101,041,169 101,039,370
Basic and diluted Earnings Per Share (in Rs) 0.36 0.363
Nominal value per Equity Share (in Rs) 1/- 1/-
In compliance with Accounting Standard 22 (AS 22) - Accounting for Taxes on Income, as notified under
the Companies (Accounting Standards) Rules, 2006, as amended, the Company has recognized deferred
tax liabilities (net) in the Profit and Loss Account of Rs. 180,202/- (Previous year Rs. 6,19,526/-) during
the year ended March 31, 2014.
The breakup of Deferred Tax Liabilities as at March 31, 2014 is as under (In Rupees)
There shall be a minimum period of one year between grant date and the vesting period for the first lot of
vesting of granted options. The interval between the subsequent lots shall be one year.
During the year the Company has granted shares on compensation meeting held on 31st March 2014
under Employee stock option as per scheme made by company in year 2011(ESOP 2011). The no of shares
vested by allottees under scheme is 656,500 shares of Rs 1/- (Face Value of Rs.10 each). Details are as
follows
PARTICULARS NO OF OPTIONS
Option Granted 3,695,000
Pricing Formula Face Value
Options Outstanding, beginning of the Year 2,615,000
No of Options given to Employees in First year (30% of total no of options) 784,500
Less-No of Options Exercised by Employees 656,500
No of Options Forfeited by Employees 1,28,000
Options Outstanding, end of the year 1,830,500
46) The scheme of amalgamation was filed under section 391 read with section 394 of the companies Act
1956 w.e.f. April 1, 2007 for the amalgamation of the following three transferor companies a) Hulchul
International Private Limited, b) Vikas Utilities Private Limited, c) South Delhi Projects Private
Limited, With the transferee company Vikas Globalone Limited (formally known as Vikas Profin
Limited).
The same has been approved by the High Court wide order no 18457/1 dated October 17, 2008. The
amalgamation has been accounted for the manner specified in the Scheme, The Surplus of Rs.
965,934/- arising out of amalgamation is shown under the head Capital Reserve Account.
47) During the year Company has transferred a sum of Rs 75.51/- Lacs relating to Employee
Compensation Expenses to prior period expenses being expenses relating to previous year.
48) Additional information pursuant to the provision of paragraph 3, 4, 4A, 4B, 4C and 4D of Part II of
Schedule VI of the Companies Act, 1956 to the extent applicable are as follows:-
c) Expenses incurred in foreign currency during the year ended March 31, 2014 aggregates to:-
(In Rupees)
PARTICULARS AS AT 31-03-14 AS AT 31-03-13
Expenditures:-
Purchase 583,018,437 551,240,097
Foreign Travelling 544,254 1,693,627
TOTAL 583,562,691 552,933,724
e) CIF value of export made during the year included in the sales amounting Rs. 290,040,356.32/-
(Previous Year: Rs. 193,706,496/-)
50) Previous year’s figures have been regrouped, where necessary to confirm with current year’s
classification.
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