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Notes to Accounts of Vikas Ecotech Ltd.

Mar 31, 2015

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

Commitments

a) Capital Commitment: There are no contracts remaining to be executed on capital account and not provided for as at 31 March, 2015.

b) Lease Commitment: The Company has taken various premises on operating leases. The lease rental of f 6,12,515/- (Previous year 12,81,500/-) has been charged to Profit and Loss Account for the year ended March 31, 2015. 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. 19.65 Lacs in the form of Bank Guarantee and 2,808.69 Lacs/- in respect of LC and duty saved against advance license is 203.73 Lacs/-. The Company has given Corporate Guarantee to the Bank of 1,600 Lacs/- for Moonlite Technochem Private Limited which was 100% Subsidiary of Vikas GlobalOne Limited and the investment in subsidiary was disposed off as per note no. 12. During the year the Company Moonlite Technochem Pvt Ltd has requested to bank to release the corporate guarantee of Vikas GlobalOne Ltd and the request is under process as on Balance Sheet date and the charge was pending as corporate guarantee as on Balance Sheet Date.

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.

Note No 5.

The Company has purchased Leasehold Land for sum of .2,55,08,761/-, at D-2/CH/401-402, Dahej - II, Industrial Estate, District Bharuch, Gujarat. Though the Company has made the payment of the same, but the registration of lease deed is still under process and not registered in the name of the Company as at the Balance Sheet Date. A leasehold rights- leasehold land is amortized over the remaining useful life.

Note No 6.

Segment Reporting:-

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:

1) Chemical Division

2) Real Estate Division

3) Agro Division

4) 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.

Note No 7.

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.

Note No 8.

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 584,393/- has been amortized and has been shown under the schedule of Fixed Assets "Note No - 11".

Note No 9.

In the opinion of the Management of the Company, all Current Assets, Loans and Advances appearing in the balance sheet as at March 31, 2015 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 10.

In the opinion of the Management, no provision is required to be made against the recoverability of these balances except provided.

During the year ended 31st March 2015, the Company has made a provision of Rs 17,04,743/- 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. Total Contribution payable is Rs 17,76,133/- is payable in next Financial Year.

Note No 11.

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.

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.

Note No 12. 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

*During the period under consideration, the Company has announced 3 bonus shares for every 2 held, thus the capital of the Company has increased to Rs. 2542.39 Lacs from Rs. 1016.96 Lacs. ** As per accounting Standard - 20, Earning Per Share and Book Value per share, EPS of the previous period has been revised for make it comparable with the current year.

Note No 13. Deferred Tax:- 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. 36,43,842/- (Previous year Rs. -1,18,162/ -) during the year ended March 31, 2015.

Note No 14.

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 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 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 options granted shall vest over a period of 3 years, or as may be decided by the CC, as per schedule as under

Note No 15.

The Company has not entered into any foreign exchange derivative instruments during the year.

Note No 16.

The scheme of amalgamation was filed under section 391 read with section 394 of the Companies Act 1956 effective from April 1, 2007 for the amalgamation of the 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 Profit 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 in the manner specified in the Scheme, The Surplus of Rs.965,934/- arising out of amalgamation is shown under the head Capital Reserve Account.

Note No 17.

The Company has acquired balance 25% share of its associate concern "Sigma Plastic Industries" on 1st April, 2014 and now the Company holds 100% stake and thereby has taken over business of its earlier associate "Sigma Plastic Industries". The Financial Statements for the period 2014-15 include financials of Sigma Plastic Industries. Consequent to acquisition of business of Sigma Plastic Industries all its liabilities and unsecured loans aggregating to . 95.27/- Lacs were taken over by the Company which has been duly refunded.

Note No 18.

Additional information to the extent applicable are as follows:-

Note No 19.

The Company has a unit in Sitarganj (Uttrakhand) where Excise duty on manufacturing from Plastic scrap is Nil and the Company has not taken Excise Registration number in Sitarganj, though there is no impact of the same on the financial statements of the Company

Note No 20.

Pursuant to the extant provisions of the Companies Act 2013 (the 'Act'), effective from 1st April 2014, the Company has changed the method of depreciation and revised the estimated useful lives of its fixed assets, generally in accordance with Schedule II to the Act. Consequent to change of useful lives an amount of Rs. 11.20 Lacs representing Written Down Book Value of those assets whose useful life had already expired as on 1st April 2014 has been adjusted against General Reserve & Surpluses. Due to this change in method of charging Depreciation for the year ended 31st March, 2015 additional depreciation of . 133.29 Lacs has been charged to the profit and loss account and thereby the profit for the year has been reduced by such an amount.

Note No 21.

Discontinuing Operations

The Company was C & F agent of Lupin Limited from past number of years. During the year under consideration the Company has earned franchise revenue and profit (before allocation of common expenditure) till December 2014 of . 214.08 Lacs and 117.90 Lacs (P.Y. 246.71 lacs and 115.95 lacs) respectively which is shown under Service Division in Segmental reporting. The Company has discontinued its service division activities and the carrying and forwarding agreement has been terminated with Lupin Limited w.e.f. 31/12/2014. Therefore there will be no revenue from franchise business in service division from Lupin Limited.

Note No 22.

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 : 10,31,232

b. Amount spent during the year: . 12,00,000


Mar 31, 2013

1. Background and nature of operations

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, Bombay Stock Exchange and Delhi Stock Exchange.

The company is manufacturing 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.

2. Commitments

a) Capital commitment: There are no contracts remaining to be executed on capital account and not provided for as at 31 March, 2013.

b) Lease commitment: The Company has taken various premises on operating leases. The lease rental of Rs. 1,470,000/- (Previous year Rs. 1,103,000/-) has been charged to Profit and Loss Account for the year ended March 31, 2013. 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.

3. There is no significant event that has been taken place after the date of Balance Sheet.

4. There is a Contingent Liability in form of Bank Guarantee of Rs. 1,412,200/- and Rs. 147,261,887/- in respect of LC and duty saved against Advance License is Rs. 57,735,526/-.

5. Segmental reporting:- 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:

1) Chemical Division

2) Real estate Division

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

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.

6. 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.

7. 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.

8. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of these balances except provided.

9. Employee Benefit Obligation: During year ended March 31, 2013 the Company has contributed Rs. 420,310/- to provident fund under defined contributions plan of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. During the year ended 31st March 2013, the Company has made a provision of Rs 706,274/- in respect of provision for gratuity and defined benefits as per actuarial valuation made as per AS-15

10. In the opinion of the Board of Directors, provision for diminution in the value of investment is Rs. 50,000/- (Previous year Rs. NIL) required in current year towards diminution in value of Long Term Investments, where the decline in value is temporary in nature but 100 % provision has been made for the same.

11. 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.

12. Deferred Tax: 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 recognised deferred tax liabilities (net) in the Profit and Loss Account of Rs. 538,511/- (Previous year Rs. 865,305/-) during the year ended March 31, 2013.

13. 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 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 Schemre''2011( ESOS 2011). 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.

14. The Company has not entered into any foreign exchange derivative instruments during the year.

15. 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.

16. Previous year''s figures have been regrouped, where necessary to confirm with current year''s classification.

 
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