Further the limit is secured on following Collateral Properties:
1. Property bearing Khasra No. 14/5/2 6 min, 15/1/2, 9/2 & 10 min Vill Ghevra, Near Mundka Railway Crossing, Delhi owned by Ms. Seema Garg and Ms. Namita Garg.
2. Roof right of Property 34/1, Vikas Apartments, East Punjabi Bagh, New Delhi owned by Vikas Globalone Limited.
3. Industrial property at Industrial Growth Centre, Phase 1, Dist. Samba, J & K owned by Vikas Globalone Limited.
4. Land & building situated at Industrial Growth Centre, Phase-1, Dist. Samba, J & K owned by Sigma Plastic Industries, which has been merged with Vikas GlobalOne Ltd.
5. F-5, Vikas Apartment, 34/1, 1st Floor, East Punjabi Bagh, New Delhi owned by Ms. Seema Garg.
6. EM of industrial property at G-30 RIICO Industrial Area, Vigyan Nagar, Shahjahanpur Dist. Alwar, Rajasthan.
7. Property situated at Khasra No. 710/201 in Village Rithala, Delhi owned by Mr. Vivek Garg.
8. A-28 Khasra No. 12/10 and 13/6 Village Kamrudin Nagar Nangloi owned by Ms. Seema Garg and Ms. Usha Garg.
9. 770, Khasra No. 142/770, situated at Village Khanjawala, New Delhi owned by Ms. Usha Garg
10. B-1, 34/1, Vikas Apartment, Punjabi Bagh, New Delhi owned by Ms. Usha Garg.
11. Mortgage of Agricultural land situated at village Sultanpur Dabas, New Delhi owned by Vikas GlobalOne Limited.
12. EM of industrial property at G-24-29 & G-30 RIICO Industrial Area, Vigyan Nagar, Shahjahanpur Dist. Alwar Rajasthan.
13. Negative lien on plot of 27,840.91 Sq. Mt. at Dahej-II, Industrial Estate, Dist. Bharuch Gujarat.
Properties at Sr. No. 4 & 5 are charged in account of Sigma Plastic Industries. Since this concern has been merged with the Vikas Globalone Limited, the properties shall now be charged to the consortium.
Further limit is guaranteed by Personal guarantee of the following
1. Mr. Nand Kishore Garg
2. Mr. Vikas Garg
3. Mr. Vivek Garg
4. Ms. Seema Garg
5. Ms. Usha Garg
6. Ms. Namita Garg
*Advance to Suppliers includes Rs,35,80,964 (Thirty Five Lacs Eighty Thousand Nine Hundred and Sixty Four only) to Moonlite Technochem Private Limited in which Director of Vikas Globalone Limited is also a Director.
***Advance against Capital Assets includes Rs,4,49,720 (Four Lacs Forty Nine Thousand Seven Hundred and Twenty only) to M M Infosystems Private Limited in which Director of Vikas Globalone Limited is also a Director.
Note No. 1
The board of directors, subject to approval of the members has recommended a dividend of 5% of face value per Equity Share.
Note No. 2
Capital Commitment: There are no any other contracts remaining to be executed on capital account and not provided for as at March 31, 2016 except the Company has purchased two Land & Building for through auction on March 19, 2016 for Rs,3,23,50,000 (2,51,00,000.00 72,50,000.00), at Village Rohad Bahadurgad admeasuring measuring 4840 sq mtrs and 1512.50 sq mts. Company has made the payment of Rs,68,00,000 for the same upto March 31, 2016, remaining payment and the registration will be done during the next financial year and the same will be registered in the name of the Company after completing all the formalities for taking over the units.
Lease Commitment: The Company has taken various premises on operating leases. The lease rental of Rs,3,55,241 (Previous year Rs,6,12,515) has been charged to Profit and Loss Account for the year ended March 31, 2016. 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.
Note No 3.
There is no significant event that has been taken place after the date of Balance Sheet.
Note No 4.
There is a Contingent Liability of Rs,398.97 Lacs in the form of Bank Guarantee and Rs,2,375 Lacs in respect of LC and duty saved against advance license is Rs,117.17 Lacs. LC Limit was utilized against the Trade Payable outstanding in Note No. 9.
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,99,61,516 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 has also filed winding up Petition against Company in High Court case no CO PET No-64/2014 due to non-payment of Rs,41,15,664 along with interest at the rate of 18% from the due date of payment. The ADM Agro Industries Kota and Akola Limited has also filed a summary suit for recovery of debts in High Court, Summary Suit No. C S (OS) 3077/2014.
*The Company Vikas Ecotech Limited acquired 100% share in Sigma Plastic Industries, and merged the same in the Vikas Ecotech Limited in FY. 2014-15, by virtue of this, pending litigation of Sigma Plastic Industries is also become part of pending litigation of Vikas Ecotech Limited.
Note No 5.
Inventory as stated in note no 15 includes real estate inventory of Rs,266.17 Lacs.
Note No 6.
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:
- Chemical Division
- Real Estate Division
- Agro Division
- Service 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.
Note No 7.
The Company has purchased Leasehold Land for sum of Rs,3,02,57,276, at D-2/CH/401-402, Dahej - II, Industrial Estate, District Bharuch, Gujarat. The Company has made the payment of the same, and the registration of lease deed is registered in the name of the Company as on January 7, 2016. A leasehold rights- leasehold land is amortized over the remaining useful life.
The Company has also purchased Leasehold Land for sum of Rs,1,56,91,100, at F 7 & 8 RIICO Industrial Area, Vigyan Nagar, Shahjahanpur Dist. Alwar, Rajasthan. The Company has made the payment of the same, and the registration of lease deed is registered in the name of the Company as on February 6, 2016. A leasehold rights- leasehold land is amortized over the remaining useful life.
Note No 8.
In the opinion of the Management of the Company, all Current Assets, Loans and Advances appearing in the balance sheet as at March 31, 2016 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.
Note No 9.
In the opinion of the Management, no provision is required to be made against the recoverability of these balances except provided. Note No 39.
Employees Benefit Obligation
I. Defined Contribution Plan
During the year the Company has recognized the following amount in the statement of profit and loss under Employee benefit expense to provident fund under defined contributions plan of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
During the year ended March 31, 2016, the Company has made a provision of Rs,8,91,804 in respect of provision for gratuity and defined benefits as per actuarial valuation made as per AS-15. The balance has been reversed & credited to the Profit and Loss A/c.
The Company has taken Group Gratuity Scheme for the employees from the LIC of India. Total Fund Value of the same is Rs,3,86,179. Note No 40.
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.
Note No 10.
Earnings Per Share:-
Basic earnings per share are 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.
Note No 11.
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 Asset (net) in the Profit and Loss Account of Rs,17,83,319 (Previous year Rs,36,43,842) during the year ended March 31, 2016.
Note No 12.
In the AGM of the Company held on September 28, 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 broad parameters outlined in the resolution, either directly or through a committee. Accordingly, a committee of directors called Compensation Committee was constituted. The Committee, after due deliberations and after studying the provisions of SEBI employee Stock option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 as amended from time to time, has formulated the Employees Stock Option Scheme, 2011 (ESOS 2011). The Scheme has been approved by the Stock Exchange on May 7, 2012 (NSE) and May 2, 2012 (BSE). The Compensation Committee at its meeting held on June 2, 2012 has granted Stock Option to the eligible employees and accordingly the options 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.
The Employee Stock Options granted by the Company pursuant to its ESOP Scheme, 2011, lapsed on December 1, 2015. No employee opted for ESOP during the year under consideration. consequent to effect of lapse of options, the balance of ''''1,05,03,337 appearing in Employee Stock Option Reversal account has been reversed and shown as under the head, Employee Stock Option Compensation account under “Other Income”, Consequent to the same, Other income has been increased and corresponding increase in profit for the year by Rs,1,05,03,337.
Note No 13.
The company does not see any material foreseeable losses on any long term contracts entered by the company, therefore no provision is required in this respect. Further the Company has not entered into any foreign exchange derivative instruments during the year under consideration.
Note No 14.
The unit at Bawana (Delhi) and unit at Sitarganj (Uttrakhand) have been shifted in the manufacturing unit at Shajahanpur, (Rajasthan).
1. In the unit at Bawana (Delhi) wherein two products namely PVC Compounds and V-blend (SOE Compound) are being manufactured (Shifted to Rajasthan Unit 1 w.e.f. February 1, 2016).
2. In the unit at Sitarganj (Uttrakhand) wherein products like V-PET-C (PET-Compound) is being manufactured (Shifted to Rajasthan Unit 1 w.e.f. February 1, 2016).
Note No 15.
Corporate Social Responsibility
The Company is covered u/s 135 of Companies Act 2013, the details of the expenditure on corporate social responsibility activity is as under:
a. Gross amount required to be spent by the Company during the year: Rs,7,02,214
b. Amount spent during the year: Rs,15,00,000
Note No 16.
There is no borrowing cost that is attributable to acquisition or development of qualifying tangible/intangible assets, which is to be capitalized till the date they are put to use.