VIKAS MULTICORP LIMITED Report/Annual_Report_2019.pdfMr. Pankaj Gupta, Independent Director 6. Ms....
Transcript of VIKAS MULTICORP LIMITED Report/Annual_Report_2019.pdfMr. Pankaj Gupta, Independent Director 6. Ms....
24TH
ANNUAL REPORT
2018-19
VIKAS MULTICORP LIMITED
Directors & Key Managerial Personnel1. Mr. Vivek Garg, Managing Director2. Mr. Hari Bhagwan Sharma, Whole Time Director3. Mr.VikasGarg,Non-ExecutiveDirector4. Mr.PurushottamDasBhoot,IndependentDirector5. Mr.PankajGupta,IndependentDirector6. Ms.MeenaBansal,IndependentDirector7. Mr.VijaySharma,ChiefExecutiveOfficer8. Mr.ChandanKumar,ChiefFinancialOfficer9. Mr.DeepanshuArora,CompanySecretary
Statutory AuditorM/sGoyal&Nagpal&Co,CharteredAccountants20-AStreetNo.6,DheerajVihar,KaralaNew Delhi-110085
Registered Office & Corporate OfficeVikasApartments,G-1,34/1East Punjabi Bagh, New Delhi-110026
Internal AuditorM/sRajnishBansal&Co,CharteredAccountantsB4/281, 282 Sector 7, Rohini, Delhi, 110085
Secretarial AuditorMSTR&Associates,CompanySecretaries105,C-2/4PragatiMarket,AshokViharPhaseII,New Delhi-110052
Registrar and Share Transfer AgentAlankitAssignmentsLimited4E/2,AlankitHouse,JhandewalanExtension,Delhi-110055
Factory LocationG-83,VigyanNagar,RecoIndustrialarea,Shahjahanpur,Rajasthan301706
BOARD COMMITTEES & THEIR COMPOSITION
Audit Committee
1. Mr.PankajGupta,Chairman2. Ms. Meena Bansal, Member3. Mr.PurushottamDasBhoot,Member
Stakeholder Relationship Committee
1. Mr.PurushottamDasBhoot,Chairman2. Mr.PankajGupta,Member3. Ms. Meena Bansal, Member
Nomination & Remuneration Committee
1. Ms. Meena Bansal, Chairman2. Mr.PurushottamDasBhoot,Member3. Mr.PankajGupta,Member
Executive Committee1. Mr. Vivek Garg , Chairman2. Mr. Hari Bhagwan Sharma, Member3. Mr. Vikas Garg, Member
COMPANY INFORMATION
CONTENTS PAGE NO.
Noticeof24thAnnualGeneralMeeting 1-10Board’sReport 11-21ManagementDiscussionandAnalysisReport 22-23CorporateGovernanceReport 24-38IndependentAuditor’sReport 39-46Balance Sheet 47StatementofProfitandLoss 48CashFlowStatement 50NotesformingPartoftheFinancialStatements 51-77ProxyForm 79-80AttendanceSlip 81
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NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT THE TWENTY FOURTH ANNUAL GENERAL MEETING OF THE MEMBERS OF VIKAS MULTICORP LIMITED WILL BE HELD ON THURSDAY, 26TH SEPTEMBER, 2019 AT 11:30 A.M. AT HARYANA MAITRI BHAWAN, SAINIK VIHAR, PITAMPURA NEW DELHI 110034 TO TRANSACT THE FOLLOWING BUSINESSES AS:
ORDINARY BUSINESS:
1. Toreceive,considerandadopttheFinancialStatementsof theCompanyfor theyearended31stMarch,2019including the audited Balance Sheet as at 31stMarch, 2019, the Statement of Profit and Losswith Cash FlowStatementfortheyearendedonthatdateandthereportsoftheBoardofDirectors(‘theBoard’)andAuditors’thereon.
2. ToappointaDirectorinplaceofMr.VikasGarg(DIN00255413),whoretiresbyrotationandbeingeligible,offershimselfforre-appointment.
3. AppointmentofM/sGoyalNagpal&Co.,CharteredAccountantsasStatutoryAuditorsoftheCompany
Toconsiderandifthoughtfit,topass,thefollowingresolutionasanOrdinary Resolution:
“RESOLVED THATpursuanttotheprovisionsoftheCompaniesAct,2013andrulesmadethereunder, includinganystatutorymodificationoramendmenttheretoorre-enactmentthereofforthetimebeinginforce,M/sGoyalNagpal&Co.,CharteredAccountants(FRN018289C)beandisherebyappointedastheAuditorsoftheCompanyforatermoffiveyearsi.e.toholdofficefromconclusionofthisAnnualGeneralMeetingtillconclusionof29thAnnualGeneralMeetingoftheCompanyatsuchremunerationandothertermsandconditionsasmaybedeterminedbytheBoardofDirectors.”
SPECIAL BUSINESS:
4. AppointmentofMs.MeenaBansal(DIN:08400953)asanIndependentDirectoroftheCompany.
Toconsiderandifthoughtfit,topassthefollowingresolutionasanOrdinary Resolution:
“RESOLVED THAT pursuanttotheprovisionsofSection149,152readwithScheduleIVandallotherapplicableprovisionsoftheCompaniesAct,2013,theCompanies(AppointmentandQualificationofDirectors)Rules,2014andintermsofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,Ms.MeenaBansal(DIN08400953),whowasappointedbytheBoardofDirectorsasanadditionalDirectoroftheCompanyandinrespectofwhomtheCompanyhasreceivedanoticeinwritingunderSection160oftheCompaniesAct,2013fromamemberproposinghercandidaturefortheofficeofDirector,beandisherebyappointedasanIndependentDirectoroftheCompanynotliabletoretirebyrotationandtoholdofficeforFiveconsecutiveyearswitheffectfrom1stJuly,2019,subjecttofulfilmentofcriteriaofIndependenceatalltimesandsuchtermsandconditionsincludingremunerationbywayofsittingfeeasapplicabletoIndependentDirectorsoftheCompany.
RESOLVED FURTHER THAT theBoardofDirectorsshallbeauthorisedtodoallsuchacts,deedsandthingsasmaybenecessarytogiveeffecttoaboveresolution.”
5. Appointment of Mr. Vivek Garg (DIN: 00255443) as Managing Director of the Company and approval of hisremuneration
Toconsiderandifthoughtfit,topassthefollowingresolutionasanOrdinary Resolution:
“RESOLVED THATpursuanttotheprovisionsofSections196,197and198readwithScheduleVandotherapplicableprovisionsoftheCompaniesAct,2013andrulesmadethereunder,theapprovalofthemembersoftheCompanybeandisherebyaccordedtotheappointmentanddesignationofMrVivekGarg(DIN00255443)asManagingDirector of the Company for a period of five yearswith effect from 1st July, 2019 at an annual remunerationequivalentto5%ofthenetprofitsoftheCompanyforthefinancialyearascalculatedunderSection198oftheCompaniesAct,2013withtheauthoritytotheBoardofDirectorstodecidehisremunerationincludingmakinganyperiodicalincreaseastheymaydeemfitandproper,providedthattheoverallremunerationofMr.VivekGargasManagingDirectoroftheCompanyshallnotexceedRs.60,00,000/-perannumatanypointoftimeandlimitsprescribedunderScheduleVincaseofinadequacyofprofits.
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RESOLVED FURTHER THAT theBoardofDirectorsshallbeauthorisedtodoallsuchacts,deedsandthingsasmaybenecessarytogiveeffecttoaboveresolution.”
6. ToConsolidatetheFaceValueoftheEquitySharesoftheCompanyandconsequentialalterationofMemorandumofAssociationoftheCompany.
Toconsiderand,ifthoughtfit,topassthefollowingresolutionasanOrdinary Resolution:
“RESOLVED THATpursuanttotheprovisionsofSection13,61andallotherapplicableprovisions, ifany,oftheCompaniesAct,2013,readwithrulesmadethereunder(includinganymodificationorre-enactmentthereof),andintermsofArticle58oftheArticlesofAssociationoftheCompany,andsubjecttothesuchapproval(s),consent(s),permission(s)andsanction(s)asmaybenecessaryor,requiredfromanyauthorityandsubjecttosuchconditionsasmaybeagreedtobytheBoardofDirectorsoftheCompany(hereinafterreferredas“theBoard”whichtermshallbedeemedtoincludeanyCommitteethereoforanysuchofficeroftheCompanyastheBoardmaydeemfit), approval of themembers of the Company be and is hereby accorded for alteration of entire authorised,issued,subscribedandpaidupsharecapitaloftheCompanybyconsolidationoffacevalueofEquitySharesoftheCompanyfromRe.1/-(RupeeOne)eachtoRs.10/-(RupeesTen)eachsothatevery10(ten)equityshareswithnominalvalueofRe.1(RupeeOne)eachheldbyamemberareconsolidatedandre-designatedinto1(one)equitysharewithnominalvalueofRs.10(RupeesTen)eachandapprovalofmembersisalsoaccordedtotheconsequentalterationofCapitalclauseofMemorandumofAssociationoftheCompanyandaccordingly,theexistingClauseVoftheMemorandumofAssociationoftheCompanybeandisherebyamendedandsubstitutedbythefollowing:
“V.TheAuthorizedShareCapitaloftheCompanyisRs.67,00,00,000/-(RupeesSixtySevenCrores)dividedinto6,70,00,000(SixCroreSeventyLac)EquitySharesofRs.10/-(RupeesTen)each.”
RESOLVED FURTHER THAT theBoardofDirectors/Committee(s)of theBoard thereof, shallnot issue fractionalsharecertificate(s)resultingfromaforesaidconsolidationandinsteadconsolidateallsuchfractionalentitlement(s),ifany,andthereuponissueandallotequitysharesinlieuthereoftoanominee(s)tobeselectedbytheBoard/Committee(s), who shall hold the equity shares as trustee(s) on behalf of themembers entitled to fractionalentitlement(s)withtheexpressunderstandingthatsuchnominee(s)shallsellthesameinthemarketatsuchtimeortimesmaybedecidedbytheBoard/Committee(s),anddistributetheirnetsaleproceedsafteradjustingthecostandexpensesinrespectthereof,tothemembersinproportiontotheirrespectivefractionalentitlement(s).
RESOLVED FURTHER THATformembersholdingequitysharesinphysicalformasontheRecordDate,thesharecertificatesforsuchequitysharesbetreatedascancelledfromtheRecordDateandthatfreshsharecertificatesbeissuedforthefullypaidconsolidatedEquitySharestosuchmembersinaccordancewiththeCompanies(ShareCapital andDebenture) Rules, 2014 and formembers holding equity shares in dematerialised form as on theRecordDate,theirrespectivebeneficiaryaccountsbecreditedwithconsolidatedfullypaidupequitysharesinlieuofequitysharesheldasontheRecordDate.
RESOLVED FURTHER THATthesharesreferredtoaboveshallinallrespectrankparipassuwiththeexistingfullypaidupequitysharesoftheCompany,providedthattheyshallconferontheholdersoftherighttodividend,ifany,forthefinancialyearinwhichtheyareallottedparipassufromthedateofallotmentofnewshares
RESOLVED FURTHER THATtheBoardbeandisherebyauthorizedtofixaRecordDateandtotakesuchstepsasmaybenecessaryforobtainingapprovals,statutory,contractualorotherwise,inrelationtotheaboveandtosettleallmattersarisingoutofandincidentalthereto,andtoexecutealldeeds,applications,documentsandwritingsthatmayberequired,onbehalfoftheCompanyandgenerallytodoallsuchacts,deeds,mattersandthingsandtogive,fromtimetotime,suchdirectionsasmaybenecessary,properandexpedientorincidentalforthepurposeofgivingeffecttothisresolution.”
By order of the Board For Vikas Multicorp LimitedDate: 12.08.2019 Place: New Delhi Sd/-
Deepanshu Arora Company Secretary
M. No A44595F-125A Dilshad Colony, Delhi-110095
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NOTES:
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING MAY APPOINT A PROXY TO ATTEND AND VOTE ON HIS BEHALF. A PROXY NEED NOT BE A MEMBER OF THE COMPANY. A PERSON CAN ACT AS PROXY ON BEHALF OF NOT EXCEEDING FIFTY MEMBERS AND HOLDING IN THE AGGREGATE NOT MORE THAN 10% OF THE TOTAL EQUITY SHARE CAPITAL OF THE COMPANY. ANY MEMBER HOLDING MORE THAN 10% OF THE TOTAL EQUITY SHARE CAPITAL OF THE COMPANY MAY APPOINT A SINGLE PERSON AS PROXY AND IN SUCH A CASE, THE SAID PERSON SHALL NOT ACT AS PROXY FOR ANY OTHER PERSON OR MEMBER. THE INSTRUMENT APPOINTING PROXY SHALL, HOWEVER, BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE COMMENCEMENT OF THE MEETING.
2. The business set out in the Notice will be transacted through electronic voting system and the Company is providing facility for voting by electronic means. Instructions and other information relating to e-voting are given in this Notice. The facility for voting through ballot paper shall be made available at the Annual General Meeting (AGM) and the members attending the meeting who have not cast their vote by remote e-voting shall be able to exercise their right at the meeting through ballot paper.
3. Corporatemembers intending to send their authorized representatives to attend theMeeting are advised tosendanadvancecopyoftheBoardResolutionpursuanttoSection113oftheCompaniesAct,2013authorisingtheirrepresentativetoattendandvoteattheAGMthroughemailatinfo@vikasmulticorp.comorbypostattheregisteredofficeoftheCompany.TheauthorisedrepresentativeshallcarrythecertifiedtruecopyoftheBoardResolutionattheAGMvenueandhandoverthesamewithattendancesliptobeeligibletovoteatthemeeting.
4. IntermsofSection152oftheCompaniesAct,2013,Mr.VikasGarg,DirectorretirebyrotationatthisMeetingandbeingeligible,offershimselfforreappointment.TheBoardofDirectorsoftheCompanyrecommendhisre-appointment.Disclosurespertaining toDirectorsproposed tobeappointed /re-appointed including theirbriefprofilepursuanttotheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andSecretarialStandardonGeneralMeetingsareprovidedasAnnexuretothisnotice.
5. A Statement pursuant to Section 102(1) of the Companies Act, 2013, relating to the Special Business to betransactedattheMeetingisannexedhereto.
6. Annual Report for financial year 2018-19 is being sent to all the Members in electronic form whose e-mailaddressesareregisteredwiththeCompany/DepositoryParticipants(s)forthepurposeofcommunication.TotheMemberswhohavenotregisteredtheire-mailaddress,theAnnualReportforthefinancialyear2018-19isbeingsentphysically.AnnualReportforfinancialyear2018-19oftheCompanyshallalsobeavailableattheCompany’sCorporateWebsiteatwww.vikasmulticorp.comandattheregisteredofficeoftheCompanyalongwithdocumentsavailableforinspectiononanyworkingdayduringofficehours.MembersdesirousofreceivingacopyofAnnualReportmaywritetotheCompanyoritsRegistrarandShareTransferAgent
7. TheCompanyhasappointedMr.TeenaRani,PracticingCompanySecretary,Partner,MSTR&Associates,CompanySecretariesasScrutinizertoscrutinizetheremotee-votingprocessandvotingthroughballotpaperattheAnnualGeneralMeetinginafairandtransparentmannerandshehascommunicatedhiswillingnesstobeappointedandwillbeavailableforsamepurpose.
8. MembersattendingthemeetingarerequestedtobringwiththemtheattendanceslipattachedtotheNoticedulyfilledinandsignedandhandoverthesameattheentranceofthehall.
9. MemberswhowishtoobtaininformationontheFinancialStatementsfortheyearended31stMarch,2019,maysendtheirqueriesatleastsevendaysbeforetheAnnualGeneralMeetingtotheComplianceOfficer&CompanySecretaryattheRegisteredOfficeoftheCompanyorbye-mailtocs@vikasmulticorp.com.
10. IntermsofprovisionsofRegulation40ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,effective1stApril,2019transferofsharesinphysicalformisnolongerpermitted,accordingly,membersholdingsharesinphysicalformarerequestedtogettheirholdingsdematerialised.
11. Members are requested to notify immediately about any change in their address / e-mail address / dividendmandate / bank details to their Depository Participant (DP) in respect of their shareholding in Demat modeandinrespectoftheirphysicalshareholdingtotheCompany’sRegistrarandShareTransferAgents,M/sAlankit
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AssignmentsLimitedattheirofficeat4E/2,JhandewalanExtension,NewDelhi-110005.MembersholdingSharesoftheCompanyinphysicalformarerequestedtoregistertheire-mailaddresswiththeRegistrarandShareTransferAgentsoftheCompanytoreceiveallcommunicationsincludingAnnualReportandNoticeofMeeting(s)bye-mail,[email protected]
Informationandotherinstructionsrelatingtoe-votingareasunder:
A. In compliance with provisions of Section 108 of the Companies Act, 2013, Rule 20 of the Companies(ManagementandAdministration)Rules,2014andRegulation44ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theCompanyispleasedtoprovidemembersfacilitytoexercisetheirrighttovoteonresolutionsproposedtobeconsideredattheAnnualGeneralMeeting(AGM)byelectronicmeans.ThefacilityofcastingthevotesbythemembersusinganelectronicvotingsystemfromaplaceotherthanvenueoftheAGM(“remotee-voting”)willbeprovidedbyNationalSecuritiesDepositoryLimited(NSDL).
B. The e-voting will commence on Monday, 23rd September, 2019 at 09.00 a.m. and will remain open tillWednesday,25thSeptember,2019at05.00p.m.DuringthisperiodmembersoftheCompany,holdingshareseitherinphysicalformorindematerializedform,asonthecut-offdateof19thSeptember,2019,maycasttheir vote electronically. The E-votingmodule shall be disabled byNSDL for voting afterWednesday, 25th September,2019at05.00p.m.Oncethevoteonaresolutioniscastbythemember,themembershallnotbeallowedtochangeitsubsequently.
C. Membersattendingthemeetingwhohavenotalreadycasttheirvotebyremotee-votingshallbeabletoexercise their rightat themeeting throughballotpaperand thosememberswhohavecast their votebyremotee-votingpriortothemeetingmayalsoattendthemeetingbutshallnotbeentitledtocasttheirvoteagain.
Process and Manner of Voting through electronic means:
The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below:
Step 1: Log-in to NSDL e-Voting system at https://www.evoting.nsdl.com/
Step 2: Cast your vote electronically on NSDL e-Voting system.
Details on Step 1 are given below:
How to Log-into NSDL e-Voting website?
1. Visitthee-VotingwebsiteofNSDL.https://www.evoting.nsdl.com/
2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under‘Shareholders’section.
3. Anewscreenwillopen.YouwillhavetoenteryourUserID,yourPasswordandaVerificationCodeasshownon the screen.
Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in athttps://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.
4. YourUserIDdetailsaregivenbelow:
Manner of holding shares i.e.Demat (NSDL or CDSL) or Physical
Your User ID is:
a)ForMemberswhoholdsharesindemataccountwithNSDL.
8 Character DP ID followed by 8Digit Client ID For example if yourDP ID is IN300*** and Client ID is 12****** then your user ID isIN300***12******.
b)ForMemberswhoholdsharesindemataccountwithCDSL.
16DigitBeneficiaryIDForexampleifyourBeneficiaryIDis12**************thenyouruserIDis12**************
c)ForMembersholdingsharesinPhysicalForm.
EVENNumberfollowedbyFolioNumberregisteredwiththecompanyForexampleiffolionumberis001***andEVENis101456thenuserIDis101456001***
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5. Yourpassworddetailsaregivenbelow:
a) Ifyouarealreadyregisteredfore-Voting,thenyoucanuseryourexistingpasswordtologinandcastyourvote.
b) IfyouareusingNSDLe-Votingsystemforthefirsttime,youwillneedtoretrievethe‘initialpassword’whichwascommunicatedtoyou.Onceyouretrieveyour‘initialpassword’,youneedtoenterthe‘initialpassword’andthesystemwillforceyoutochangeyourpassword.
c) Howtoretrieveyour‘initialpassword’
i. IfyouremailIDisregisteredinyourdemataccountorwiththecompany,your‘initialpassword’iscommunicatedtoyouonyouremailID.TracetheemailsenttoyoufromNSDLfromyourmailbox.Opentheemailandopentheattachmenti.e.a.pdffile.Openthe.pdffile.Thepasswordtoopenthe.pdffileisyour8digitclientIDforNSDLaccount,last8digitsofclientIDforCDSLaccountorfolionumberforsharesheldinphysicalform.The.pdffilecontainsyour‘UserID’andyour‘initialpassword’.
ii. If youremail ID isnot registered,your ‘initialpassword’ is communicated toyouonyourpostaladdress.
6. Ifyouareunabletoretrieveorhavenotreceivedthe“Initialpassword”orhaveforgottenyourpassword:
a) ClickonForgotUserDetails/Password(Ifyouareholdingshares inyourdemataccountwithNSDLorCDSL)optionavailableonwww.evoting.nsdl.com.
b) Physical User Reset Password (If you areholding shares in physicalmode)option available onwww.evoting.nsdl.com.
c) Ifyouarestillunabletogetthepasswordbyaforesaidtwooptions,[email protected] mentioning your demat account number/folio number, your PAN, your name and yourregisteredaddress.
7. Afterenteringyourpassword,tickonAgreeto“TermsandConditions”byselectingonthecheckbox.
8. Now,youwillhavetoclickon“Login”button.
9. Afteryouclickonthe“Login”button,Homepageofe-Votingwillopen.
Details on Step 2 are given below:
1. AftersuccessfulloginatStep1,youwillbeabletoseetheHomepageofe-voting.Clickone-voting.Then,clickonActiveVotingCycles.
2. AfterclickonActiveVotingCycles,youwillbeabletoseeallthecompanies“EVEN”inwhichyouareholdingsharesandwhosevotingcycleisinactivestatus.
3. Select“EVEN”forthe“Vikas Multicorp Limited”
4. Nowyouarereadyfore-votingastheVotingpageopens.
5. Castyourvotebyselectingappropriateoptionsi.e.assentordissent,verify/modifythenumberofsharesforwhichyouwishtocastyourvoteandclickon“Submit”andalso“Confirm”whenprompted.
6. Uponconfirmation,themessage“Votecastsuccessfully”willbedisplayed.
7. Youcanalsotaketheprintoutofthevotescastbyyoubyclickingontheprintoptionontheconfirmationpage.
8. Onceyouconfirmyourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.
General Guidelines for shareholders
1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scannedcopy (PDF/JPGFormat)of the relevantBoardResolution/Authority letteretc.withattestedspecimensignatureofthedulyauthorizedsignatory(ies)whoareauthorizedtovote,totheScrutinizerbye-mailto [email protected] [email protected].
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2. Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.Logintothee-votingwebsitewillbedisableduponfiveunsuccessfulattemptstokeyinthecorrectpassword.Insuchanevent,youwillneedtogothroughthe“ForgotUserDetails/Password”or“PhysicalUserResetPassword”optionavailableonwww.evoting.nsdl.comtoresetthepassword.
3. In case of any queries, youmay refer the Frequently Asked Questions (FAQs) for Shareholders ande-votingusermanualforShareholdersavailableatthedownloadsectionofwww.evoting.nsdl.comor callontollfreeno.:[email protected]
By order of the Board For Vikas Multicorp LimitedDate: 12.08.2019 Place: New Delhi Sd/-
Deepanshu Arora Company Secretary
M. No A44595F-125A Dilshad Colony, Delhi-110095
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Statement pursuant to section 102(1) of the Companies Act, 2013 and under Secretarial Standards on general meetings (SS-2)
Item No. 4
Ms.MeenaBansal(DIN08400953),aged29,wasappointedasIndependentDirectorbytheBoardon1stJuly,2019onthebasisoftherecommendationsofNominationandRemunerationCommittee,as IndependentDirectoroftheCompanyforaperiodoffiveyearscommencingfrom1stJuly,2019subjecttotheapprovalofshareholders.
She is a CharteredAccountant by qualification and has good experience in area of financial accounting, audit andtaxation.ShehasbeenanindependentprofessionalandhasremainedactiveinIndustryforaround12years.
TheCompanyhasreceivedanoticeunderSection160oftheCompaniesAct,2013proposinghercandidaturefortheofficeofIndependentDirectoroftheCompany.Ms.MeenaBansalisnotdisqualifiedfrombeingappointedasaDirectorintermsofSection164oftheAct.ShehasgivenhisconsenttoactasaDirectorandadeclarationtotheeffectthatshemeetsthecriteriaofIndependenceasprovidedinSection149(6)oftheActandtheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“ListingRegulations”).
IntheopinionoftheBoard,Ms.MeenaBansalpossessesappropriateskills,experience&knowledgeandfulfilstheconditionsforappointmentasanIndependentDirectorasspecifiedintheActandtheSecuritiesandExchangeBoardof India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and that she is independent of themanagement.
CopyoftheletterforappointmentofMs.MeenaBansalasanIndependentDirectorsettingoutthetermsandconditionsofherappointmentisavailableforinspectionbymembersattheRegisteredOfficeoftheCompany.
ThedetailsofMs.MeenaBansalasrequiredundertheprovisionsofRegulation36(3)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andotherapplicableprovisionsoftheCompaniesAct,2013areprovidedinAnnexuretothisNotice.
ExceptMs.MeenaBansal,beinganappointee,noneoftheotherDirectorsandKeyManagerialPersonnelandtheirrespectiverelativesare,inanyway,concernedorinterested,financiallyorotherwise,intheResolutionsetoutatItemNo.4ofthisNotice.
TheBoardofDirectorsrecommendstheOrdinaryResolutionforyourapproval.
Item No. 5
Mr.VivekGarg(DIN00255443),aged44,wasappointedasAdditionalDirectoranddesignatedhimasManagingDirectorbytheBoardon1stJuly,2019onthebasisoftherecommendationsofNominationandRemunerationCommitteeforaperiodoffiveyearscommencingfrom1stJuly,2019to30thJune,2024subjecttotheapprovalofshareholders.
Mr.VivekGargisaCommercegraduatefromDelhiUniversityandhasvastexperienceinfieldoforganizationbuildingandhasbeenactiveinIndustryforaround16years.
TheCompanyhasreceivedanoticeunderSection160oftheCompaniesAct,2013proposinghiscandidaturefortheofficeofManagingDirectoroftheCompany.Mr. Vivek Garg isnotdisqualifiedfrombeingappointedasaDirectorintermsofSection164oftheAct.
ThedetailsofMr. Vivek Garg asrequiredundertheprovisionsofRegulation36(3)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andotherapplicableprovisionsoftheCompaniesAct,2013areprovidedinAnnexuretothisNotice.
The Information as required under Section II of Part II of Schedule V of the Companies Act, 2013 is as under:
1. General Information
NatureofIndustry Trading&Manufacturing
DateorexpecteddateofcommencementofcommercialProduction
NotApplicable(TheCompanyisanexistingcompany)
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Incaseofnewcompanies,expecteddateofcommencementofactivitiesasperprojectapprovedbyfinancialinstitutionsappearingintheprospectus
NotApplicable(TheCompanyisanexistingcompany)
FinancialPerformance Particulars FY2018-19 FY2017-18 FY2016-17
Total Reve nue(inRs.Lakhs.)
21582.35
6674.16 10051.25
PAT(inRs.Lakhs.)
192.64 56.72 68.55
ForeigninvestmentsorCollaborators,ifany NotApplicable
2. INFORMATION ABOUT THE MANAGING DIRECTOR
Mr. Vivek Garg,agedaround44years, isaCommerceGraduate.Hehasvastexperienceofmorethan16yearsofIndustryandbusinessacumenofpolymerandpetrochemicalproducts.HeisinstrumentaltothedaytodayworkingandoperationsoftheCompany.
3. REMUNERATION PROPOSED
TheremunerationproposedforMr.VivekGargshallbepaidonmonthlybasisasmaybedecidedbytheBoardwithintheupperlimitofRs.5,00,000/permonth(i.e.Rs.60,00,000/-perannum)inclusiveofallallowancesandperquisites.
TheremunerationpayabletotheManagingDirectorhasbeenbenchmarkedwiththeremunerationbeingdrawnbysimilarpositionsinindustryandhasbeenconsideredbytheNominationandRemunerationCommitteeoftheCompanyasappropriateorratheronlowersideascomparedtoindustry.
TheManagingDirectorhavenopecuniaryrelationshipdirectlyorindirectlywiththeCompanyexcepttotheextentofhisremunerationandshareholdingsintheCompanyintheCompanyoranyofthegroupconcern.
4. OTHER INFORMATION
a) Reasonsoflossorinadequateprofits:TheCompanyhasremainedaprofitmakingorganisationandrecentlyhavegonethroughwithcorporaterestructuring,thefinancialsoftheCompanyhavethusbeenpreparedandrepresentedaftertakingeffectofsaidmergerandthustheloss.
b) Stepstakenorproposedtobetakenforimprovement:TheCompanyremainscommittedtogeneratingsupe-riorreturnsforitsstakeholders.ThecorporaterestructuringhasresultedinCompanyacquiring‘RecycledandTradingCompoundsDivision’ofgroupconcern‘VikasEcotechLimited’andamalgamationofthesamewiththeCompany.Thesaidmergerwouldresultinbusinesssynergiesandprofitability.
c) Expected increase inproductivityandprofits inmeasurable terms: Mr.VivekGarghasvastexperience inmanagement,businessandPolymerIndustry.Accordingly,hisappointmentasManagingDirectorshallbeintheinterestoftheCompanyanditsefficiency.
ExceptMr.VivekGargandMr.VikasGarg,noneoftheotherDirectorsandKeyManagerialPersonnelandtheirrespec-tiverelativesare,inanyway,concernedorinterested,financiallyorotherwise,intheResolutionsetoutatItemNo.5ofthisNotice.
TheBoardofDirectorsrecommendstheOrdinaryResolutionforyourapproval.
Item No. 6
TheEquitySharesoftheCompanyarelistedonNationalStockExchangeofIndiaLimitedandBSELimited.InordertoimprovethevalueofsharesforthebenefitofShareholdersoftheCompany.TheBoardofDirectorsattheirmeetingheldon12thAugust,2019haveapproved,subjecttoapprovalofShareholders,alterationofentireauthorised,issued,subscribedandpaidupsharecapitaloftheCompanybyconsolidationoffacevalueofEquitySharesoftheCompany
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ANNUAL REPORT 2018-19
fromRe.1/-(RupeeOne)eachtoRs.10/-(RupeesTen)eachsothatevery10(ten)equityshareswithnominalvalueofRe.1(RupeeOne)eachheldbyamemberareconsolidatedandre-designatedinto1(one)equitysharewithnominalvalueofRs.10(RupeesTen)eachfromtheRecordDateasmaybefixedforthesaidpurpose.
Theshareholdersmaypleasenote thatpresently thenominal valueofeachequity shareof theCompany isRe.1/-(RupeesOne)pershareandconsequenttotheconsolidation,itwillbeenhancedtoRs.10/-(RupeeTen)pershareandaccordinglytheshareholding(numberofsharesheld)wouldbeadjusted inthehandsofshareholders.Thedateonwhichthisconsolidationwouldbecomeeffective,willbedecidedbytheBoardandwillbenotifiedthroughtheStockExchangesandNewspaperAdvertisement.
Consequenttoabove,theMemorandumofAssociationoftheCompanyshallbeamendedbyalterationofCapitalclause.Presently,theAuthorizedShareCapitaloftheCompanyisRs.67,00,00,000/-(RupeesSixtySevenCrores)dividedinto67,00,00,000(SixtySevenCrore)EquitySharesofRe.1/-(RupeeOne)each.ClauseVofMemorandumofAssociationisaccordinglyproposedtobealteredbyamendedandsubstitutedasfollows:
“V. The Authorized Share Capital of the Company is Rs. 67,00,00,000/- (Rupees Sixty Seven Crores) divided into6,70,00,000(SixCroreSeventyLac)EquitySharesofRs.10/-(RupeesTen)each.”
TheBoardofDirectors/Committee(s)oftheBoardthereof,shallnotissuefractionalsharecertificate(s)resultingfromaforesaidconsolidationandinsteadconsolidateallsuchfractionalentitlement(s),ifany,andthereuponissueandallotequityshares in lieuthereoftoanominee(s) tobeselectedbytheBoard/Committee(s),whoshallholdtheequitysharesastrustee(s)onbehalfofthemembersentitledtofractionalentitlement(s)withtheexpressunderstandingthatsuchnominee(s)shallsellthesameinthemarketatsuchtimeortimesmaybedecidedbytheBoard/Committee(s),anddistributetheirnetsaleproceedsafteradjustingthecostandexpensesinrespectthereof,tothemembersinproportiontotheirrespectivefractionalentitlement(s).
IntermsoftheprovisionsofSection13readwithSection61oftheCompaniesAct2013,approvaloftheShareholdersis required for consolidationof facevalueofequity sharesof theCompanyasaboveand consequentalterationofMemorandum of Association. Therefore, the said resolutions are herewith placed for your approval. Your Boardrecommends theproposalassetout in theResolutionprovidedunder itemno.6 foryourapprovalasanOrdinaryResolution.
Noneof theDirectorsand/orKeyManagerialPersonnelof theCompany is inanyway interested in theResolution,exceptincapacityasshareholdersoftheCompanytotheextentoftheirshareholdingandtheshareholdingoftheirrelativesintheCompany.
By order of the Board For Vikas Multicorp LimitedDate: 12.08.2019 Place: New Delhi Sd/-
Deepanshu Arora Company Secretary
M. No A44595F-125A Dilshad Colony, Delhi-110095
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ANNUAL REPORT 2018-19
Details of Directors seeking appointment/re-appointment at the Annual General Meeting of the Company pursuant to Regulation 36 of the SEBI (Listing Obligations & Disclosure Requirement) Regulations, 2015 and Secretarial Standard-2 on General Meetings issued by the Institute of Company Secretaries of India
Resolution No. 2 4 5Name of Director Mr. Vikas Garg Ms. Meena Bansal Mr. Vivek Garg Appointed as NonExecutiveDirector IndependentDirector Managing DirectorDirector Identification Number (DIN)
00255413 08400953 00255443
Age 46Years 29Years 44 yearsDate of Appointment at current Designation / Date of first appointment on
the Board
June7,2013 July1,2019 July1,2019
Profile / Qualifications & Experience
Mr. Vikas Garg is a Commerce graduate from DelhiUniversity.Hehasenrichedexperienceofover18yearsinthefieldofChemicalandPetrochemicalsProducts.
Ms. Bansal is a CharteredAccountant by qualificationandhasgoodexperienceinareaoffinancialaccounting,auditandtaxation.
She has been an independent professionaland has remained activein Industry for around 12years.
Mr. Vivek Garg is a Commercegraduatedetailson his experienced areformingpartofexplanatorystatementtothenotice.
Names of listed other entities in which the person also holds the directorship
VikasEcotechLimited None VikasEcotechLimited
Chairmanship/Membership of Committees in companies in which position of Director is held
Mr. Vikas Garg is member offollowingcommitteesofVikasEcotechLimited
i. CSRCommittee
ii. Stakeholders’RelationshipCommittee
iii. ExecutiveCommittee
Nil Mr. Vivek Garg is member of following committees ofVikasEcotechLimited
i. Stakeholders’RelationshipCommittee
ii. ExecutiveCommittee
Shareholding in the Company
19,14,28,436 Nil 1550
Relationship between Directors
Brother of Mr. Vivek Garg, Managing Director of the Company
Not related to any of theDirectors
Brother of Mr. Vikas Garg, Non-Executive Director oftheCompany
Remuneration paid / proposed
As applicable to Non- Executive Director/ IndependentDirectorscomprisespaymentofSittingsfeesforattendingthemeetingsofBoardofDirectorsanditscommitteesasapprovedbytheBoardfromtimetotime.
NotexceedingRs.60,00,000/-perAnnum
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ANNUAL REPORT 2018-19
BOARD’S REPORT
THE MEMBERS
OFVIKASMULTICORPLIMITED
YourDirectorshavepleasure inpresenting theTwentyForthAnnualReportof theCompany togetherwithauditedFinancialStatementsfortheFinancialYearendedMarch31,2019.
FINANCIAL RESULTS AND OPERATIONS
ThefinancialperformancefortheyearendedMarch31,2019issummarizedbelow:
(AmountinRupees)
Particulars As at March 31, 2019 As at March 31, 2018
TotalIncome 219,87,96,835 200,89,35,700
Profit before depreciation, Finance Costs, Tax and Excep-tionalitems
8,25,07,915 9,68,77,035
Less:Depreciation 72,21,139 80,49,155
Less:FinanceCosts 6,19,27,054 6,71,40,669
Profit/(Loss)beforeTax 2,80,59,362 2,16,87,211
Less:
Current Tax 1,12,63,495 65,98,540
Adjustmentoftaxrelatingtoearlierperiods 26,65,504 0
DeferredTax/MATCreditentitlement (51,33,762) 2,59,942
Profit/(Loss)afterTax 1,92,64,125 1,48,28,729
Add:OtherComprehensiveIncomenetoftaxes (74,18,61,878) 34,99,12,190
TotalComprehensiveIncome (74,18,61,878) 34,99,12,190
Profits/(Loss)afterTax (72,25,97,753) 36,47,40,919
EarningPerEquityShareofthefacevalueof`1each
Basic 0.029 0.022
Diluted 0.029 0.025
Duringtheyearunderreview,theCompanyachievedaturnoverofRs.219CroreasagainstRs.200CroreforpreviousyearhowevertheCompanyincurredalossof72.25CroreasagainstprofitsofRs.36.47Croreforthepreviousfinancialyear.
Thefinancialsarepreparedaftertakingeffectofimpendingdemergerof‘RecycledandTradingCompoundsDivision’ofgroupconcern‘VikasEcotechLimited’andamalgamationofthesamewiththeCompany.
STATE OF AFFAIRS OF THE COMPANY
Thecompanystartedit’sinitiativeonrecyclingofplasticsforeseeingthepotentialinthebusiness.Therecycledmaterialsononehandofferamuch lower inputcostapart fromthe longtermviabilityofthe ideaembedded inrecyclingofplastics for fulfillingenvironmentalobligationswhich is fastgrowingbasedontheenhancedawarenessandvariousmandatesissuedontheneedtorecycleplastics.
ThecompanyassociatedwithGemEnviro,inordertoofferturnkeysolutionstothemanufacturersofvariousconsumerproductsusingmajorquantitiesofplasticsforpackagingrecyclingofplasticsformajorconsumerbrandslikecococola,Pepsi,Maricoetc.
WhereintheEPREnvironmentProtectionRegulations,whichmandatesthebrandstoensurerecyclingoftheQuantityofplasticsusedbythesebrandsforpackagingoftheirproducts.
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ANNUAL REPORT 2018-19
Which in turnoffersanopportunity in termofaconsistent supplyofplasticscrapsand factorywasteand rejectedmaterialsfromthesemanufacturestorecylerslikeVML.
TheEPRmandate&obligationsarecompellingthesebrandstoengagerecyclers,whereastherecyclerswouldgetsomefinancialsupportfromthesefactoriessupportingrecyclingoperationsinreturn.
VML isallsettotap intheopportunitybyrepresentingtheirrecyclingskill set&bagging longtermagreementsonsourcing&recyclingoftherefactorywastes&scrapsfor&onbehalfofthesefactories.
Ontheotherhandbasedonanin-depthunderstandingandknowledgeonimprovingthespecificationsandpropertiesofpolymers,VML iswellequipped toadd tremendousvalue to thesematerialsbywayofupcycling thesematerialmakingafinalmaterialwhichisasgoodasvirginmaterialsineveryaspect.
RecyclingbusinessforVMLisonthefirmpathtoturnintoalucrative&growingbusinessforVMLwithunimaginablePotential.
CHANGE IN NATURE OF BUSINESS
Duringtheyearunderreview,thereisnochangeinthenatureofbusiness,exceptasstatedotherwiseinthisreport.
LISTING OF EQUITY SHARES
Duringtheyearunderreview,pursuanttotheschemeofarrangement,ShareholdersofVikasEcotechLimitedwereallottedequitysharesofyourCompanyintheratioof1:1andaccordingly,equitysharesoftheCompanywerelistedontheNationalStockExchangeofIndiaLimited(NSE)andBSELimited(BSE)onMay8,2019.
CAPITAL STRUCTURE
Authorised Share Capital
TheAuthorisedShareCapitaloftheCompanyisRs.67,00,00,000dividedinto67,00,00,000EquitySharesofRe.1each.
Paid-up Share Capital
Ason31stMarch,2019,theIssuedandPaidupShareCapitaloftheCompanystoodatRs.66,34,95,495/-dividedinto66,34,95,495equitysharesoffacevalueofRe.1/-pershare.TheCompanyhasallotted23,87,33,535EquitySharesofRe.1/-pursuanttotheSchemeofArrangementduringtheyear.
BOARD OF DIRECTORS& KEY MANAGERIAL PERSONNEL
ThedetailsoftheDirectors&KeyManagerialPersonneloftheCompanyandchangesthereinaregivenbelow:
Name of Official Designation
Mr.PurushottamDasBhoot1 Chairman&IndependentDirector
Mr. Hari Bhagwan Sharma Whole Time Director
Mr. Vikas Garg NonExecutiveDirector
Mr.PankajKumarGupta IndependentDirector
Mr.KapilGupta2 IndependentDirector
Ms.AnubhutiMishra3 IndependentDirector
Mr. Vivek Garg4 Managing Director
Ms. Meena Bansal5 IndependentDirector
Ms.PreetiRai6 CompanySecretary
Mr.ChandanKumar7 ChiefFinancialOfficer
Ms.PoojaJain8 CompanySecretary
Mr.DeepanshuArora9 CompanySecretary
Mr.VijayKumarSharma10 ChiefExecutiveOfficer
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ANNUAL REPORT 2018-19
1. AppointedasChairmanoftheCompanyw.e.f.1stJuly,2019.2. ResignedfromDirectorshipw.e.f.7thJune,2019.3. ResignedfromDirectorshipw.e.f.9thJuly,2019.4. AppointedasManagingDirectorw.e.f.1stJuly,2019.5. AppointedasIndependentDirectorw.e.f.1stJuly,2019.6. ResignedasCompanySecretaryw.e.f.31stAugust,20187. AppointedasChiefFinancialOfficerw.e.f.8thSeptember,20188. AppointedasCompanySecretaryw.e.f.8thSeptember,2018andResignedw.e.f.31st December, 20189. AppointedasCompanySecretaryw.e.f.4thJanuary,201910. AppointedasChiefExecutiveOfficerw.e.f.8thSeptember,2018
CORPORATE GOVERNANCE
TheCompanybelievesinadheringtothebestcorporategovernancepracticesanditsphilosophyemphasisesonfairandtransparentgovernanceanddisclosurepractices.AdetailedreportonCorporateGovernanceintermsofextantprovisionsofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(‘ListingRegulations’)isformingpartofthisAnnualReportandinter alia,followingdisclosuresaredetailedtherein:
• Declaration By Independent Directors
• Board Meetings Held During The Year
• Committees Of The Board
• Annual Board Evaluation
• Code of Conduct and Vigil Mechanism/Whistle Blower Policy
Nomination and Remuneration Policy
The Company has in place the Nomination & RemunerationPolicy which lays down the criteria for appointment,evaluationofperformanceofDirectorsandremunerationofDirectors,KeyManagerialPersonnel,SeniorManagementPersonnelandotheremployees.TheNomination&RemunerationPolicyisaccessibleatthewebsiteoftheCompanyatwww.vikasmulticorp.com.
Secretarial Standards
DuringtheyearunderreviewtheCompanyhascompliedwithallapplicableSecretarialStandardsissuedbyInstituteofCompanySecretariesofIndia.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
TheManagementDiscussionandAnalysisReportonCompany’sperformance-industrytrendandothermaterialchangeswithrespecttotheCompanyformspartofthisAnnualReport.
AUDITORS AND AUDITORS’ REPORT
Statutory Auditors
Duringtheyear,M/sKSMC&Associates,CharteredAccountants(FRN003565N),resignedastheStatutoryAuditoroftheCompanyeffective22ndDecember,2018.Tofill thesaidcasualvacancytheBoardapprovedappointmentofM/sGoyalNagpal&Co.,CharteredAccountants(FRN018289C)asAuditorsoftheCompanyandshareholders’approvaltotheirappointmentwasdulyobtainedattheExtra-OrdinaryGeneralMeetingheldonApril3,2019.Accordingly,theirtermexpiresattheensuingAnnualGeneralMeetingandtheirappointmentasAuditorsisproposedforthetermoffiveyearsforapprovaloftheMembers.
M/sGoyalNagpal&Co.,CharteredAccountantshaveconveyedtheirconsenttoactasAuditorsoftheCompanyandhavealsoconfirmedthattheymeetthecriteriaforthesaidappointment.
Therearenoqualifications,reservations,oradverseremarksintheReportissuedbyM/sGoyalNagpal&Co.,StatutoryAuditors,fortheyearunderreview.RemarksmadeintheReportareself-explanatoryanddonotcallforanyfurthercomments from your Directors.
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ANNUAL REPORT 2018-19
Secretarial Auditor
M/s.MSTR&Associates,CompanySecretarieswereappointedastheSecretarialAuditorsofyourCompanytocarryouttheSecretarialAuditforthefinancialyearunderreview.TheSecretarialAuditReportissuedbytheSecretarialAuditorsinFormNo.MR-3isannexedwiththisReportandmarkedas‘Annexure A’.Therearenoqualifications,reservationsoradverseremarksintheSecretarialAuditReportrequiringanycommentsfromyourDirectors.
Cost Audit
RequirementsofmaintenanceofcostrecordsandcostauditasprescribedundertheprovisionsofCompaniesAct,2013arenotapplicabletotheCompany.
DIVIDEND ON EQUITY SHARES
Inviewoflosses,yourDirectorsdonotrecommendanydividendonthesharesoftheCompanyfortheFinancialYearendedonMarch31,2019.
Notransferstoreservesweremade,asnoappropriationswererequiredtobemadeduringtheFinancialYearunderreview.
DEPOSITS
TheCompanyhasnotacceptedanypublicdepositsandassuch,noamountonaccountofprincipalorinterestonpublicdepositswasoutstandingasonthedateoftheBalanceSheet.
REMUNERATION OF DIRECTORS, KEY MANAGERIAL PERSONNEL AND PARTICULARS OF EMPLOYEES
DisclosurespertainingtotheremunerationandotherdetailsasrequiredunderSection197(12)oftheActreadwithRule5(1)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel),Rules,2014areprovided in‘Annexure-B’tothisReport.
CORPORATE SOCIAL RESPONSIBILITY
TheprovisionsofCorporateSocialResponsibilityarenotapplicabletotheCompanyandhencedisclosuresunderSec135oftheCompaniesAct,2013arenotapplicabletotheCompany.
SIGNIFICANT AND MATERIAL ORDERS
Therearenosignificantormaterialorderspassedbytheregulators,courtsortribunalshavinganimpactonthefutureoperationsoftheCompanyoritsgoingconcernstatus.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
IntermsofSection186oftheCompaniesAct,2013,particularsofinter-corporateloans,guaranteesandinvestmentsareprovidedinthenotestoFinancialStatements.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITHRELATED PARTIES REFERRED TO IN SECTION 188
AllRelatedpartytransactionsareenteredonanarm’slengthbasisandareincompliancewiththeapplicableprovisionsoftheCompaniesAct,2013andtheListingRegulations.TherearenomateriallysignificantrelatedpartytransactionsmadebytheCompanywithPromoters,DirectorsorKeyManagerialPersonneletc.whichmayhavepotentialconflictwiththeinterestoftheCompanyatlarge.Company’spolicyonrelatedpartytransactionscanbeaccessedatitswebsitewww.vikasmulticorp.com.
TheparticularsofeverycontractandarrangemententeredintobytheCompanywithrelatedpartiesreferredtoinsub-section(1)ofsection188oftheCompaniesAct,2013includingcertainarm’slengthtransactionsunderthirdprovisotheretoaredisclosedinFormNo.AOC-2in‘Annexure – C’andformspartofthisReport.
ANNUAL RETURN
TheAnnualReturnpursuanttotheprovisionsofSection92readwithRule12oftheCompanies(ManagementandAdministration)Rules,2014ofyourCompanyforthefinancialyearunderreviewisavailableatwebsiteofyourCompanywww.vikasmulticorp.com
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ANNUAL REPORT 2018-19
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY
TherehavebeennomaterialchangesandcommitmentsaffectingthefinancialpositionofyourCompanyoccurringbetweentheendoftheFinancialYearandthedateofthisReport.
PARTICULARS REGARDING CONSERVATION OF ENERGY ETC.UNDER SECTION 134(3)(m) OF THE COMPANIES ACT, 2013 AND RULES MADE THEREIN
AspertheprovisionsofSection134(3)(m)oftheActreadwithCompanies(Accounts)Rules,2013,themeasurestakenduringtheyearunderreviewforconservationofenergyandtechnologyabsorptionbytheCompanyareprovidedas‘Annexure D’.
ADEQUACY OF INTERNAL CONTROLS
TheCompany’sinternalcontrolsystemsarecommensuratewiththenatureofitsbusinessandthesizeandcomplexityofitsoperations.TheStatutoryandtheInternalAuditorsroutinelyconductsystemchecksandgivetheirreportafterevaluationof theefficacy andadequacyof internal control systems including controlswith respect to thefinancialstatements,itscompliancewithoperatingsystems,accountingproceduresandpoliciesintheCompany.BasedonthereportofInternalAudit,thedepartmentsundertakecorrectiveactionintheirrespectiveareasandtherebystrengthenthe controls.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION ANDREDRESSAL) ACT, 2013
TheCompanyhasinplaceanAntiSexualHarassmentPolicyinlinewiththerequirementsofTheSexualHarassmentofWomenattheWorkplace(Prevention,ProhibitionandRedressal)Act,2013.Duringtheyearunderreview,nocompliantwasreceivedinthisregard.
DIRECTORS’ RESPONSIBILITY STATEMENT
PursuanttoSection134(3)(C)readwithSection134(5)of theAct, theDirectors, tothebestof theirknowledgeandability,herebyconfirmthat:
i. inthepreparationoftheannualaccounts,theapplicableaccountingstandardshadbeenfollowedwithproperexplanationrelatingtomaterialdepartures;
ii. theyhaveselectedsuchaccountingpoliciesinconsultationwithStatutoryAuditorsandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsofthecompanyattheendoftheFinancialYearMarch31,2019andoftheprofitandlossofthecompanyfortheFinancialYear;
iii. theyhave takenproperandsufficientcare, to thebestof theirknowledgeandability, for themaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheCompaniesAct,2013forsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;
iv. theannualaccountsoftheCompanyhavebeenpreparedonagoingconcernbasis.
v. the directors had laid down internal financial controls to be followed by the Company and that such internalfinancialcontrolsareadequateandwereoperatingeffectively.
vi. theyhaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicable lawsandthatsuchsystemswereadequateandoperatingeffectively.
YourDirectorsplaceonrecordtheirappreciationforthevaluablesupportandcooperationoftheCompany’sBankers,Government Agencies, Customers, Suppliers, Shareholders, Employees and other statutory authorities, who havereposedtheircontinuedtrustandconfidenceintheCompany.
For Vikas Multicorp LimitedSd/-
Purshottam Dass BhootChairman
DIN: 00002974Date: 12.08.2019 Place: New Delhi
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ANNUAL REPORT 2018-19
Annexure A
Form No. MR-3
Secretarial Audit Report
For the Financial year ended 2018-19
[Pursuant to section 204(1) of the Companies Act, 2013 and rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel)Rules, 2014]
To,
The Members,
VIKASMULTICORPLIMITED,
G-1 34/1, East Punjabi Bagh, New Delhi-110026
WehaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyVIKAS MULTICORP LIMITED(hereinaftercalledtheCompany).SecretarialAuditwasconductedin amanner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances andexpressingmyOpinionthereon.
Basedonourverificationof theVikas Multicorp Limited books,papers,minutebooks, formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit.
Wehereby report that inouropinion, thecompanyhas,during theauditperiodcovering thefinancial yearendedon 31stMarch,2019compliedwiththestatutoryprovisions listedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:
Wehaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbyVikas Multicorp Limited forthefinancialyearendedon31stMarch,2019accordingtotheprovisionsof:
(i) TheCompaniesAct,2013(theAct)andtherulesmadethereunder;
(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;
(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsFramedthereunder;
(iv) ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereunder toextentofForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialborrowings(NoFreshFDI,ODIandECBwastakenbytheCompanyduringtheAuditPeriod);
(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-
(a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;
(b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;
(c) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018;
(d) TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosuresRequirements)Regulations,2015;
Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:
(i) SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndiaasamendedtimetotime.
(ii) TheListingAgreementsenteredintobytheCompanywithStockExchangesandSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(TheCompanyhaslisteditsequitysharesonBSELimitedandNationalStockExchangeLimitedonMay08,2019)
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ANNUAL REPORT 2018-19
During the period under review the Company has complied with the provisions of the Act, Rules,Regulations,Guidelines,Standards,etc.mentionedabove.
wefurtherreportthat
1) Pursuant to Section 203 of the Companies Act, 2013, the Company has duly appointed a CompanySecretary in whole time employment, However,Ms. Pooja Jain resigned from the post of CompanySecretaryason31.12.2018andMr.DeepanshuArorahasbeenappointedasCompanySecretaryandComplianceofficerw.e.f.04.01.2019.Mr.VijayKumarSharmahasbeenappointedasChiefExecutiveOfficerw.e.f.01.07.2019andMr.ChandanKumarwasappointedasChiefFinancialOfficeroftheCompanyas on 08.09.2018.
2) TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-Executive Directors and Independent Directors. The changes in the composition of the BoardofDirectors that tookplaceduring theperiodunderreviewwerecarriedout incompliancewith theprovisionsoftheAct.
3) AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.
4) Majoritydecisioniscarriedthroughwhilethedissentingmembers’viewsarecapturedandrecordedaspartoftheminutes.
Wefurtherreportthatthereareadequatesystemsandprocessesinthecompanycommensuratewiththesizeandoperationsofthecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.
Note:Pleasereportspecificobservations/qualification,reservationoradverseremarksinrespectoftheBoardStructures/systemandprocessesrelatingtotheAuditperiod.
Wefurtherreportthatduringtheauditperiod,therewerenoinstancesof:
(i) Public/Right/Preferential issueofshares/debentures/sweatEquityetc.: (Duringtheyearunderreview,thereisanallotmentof238,733,535equitysharespursuanttoSchemeofArrangementintheCompany)
(ii) Redemption/buy-backofsecurities
(iii) Majordecisionstakenbythemembersinpursuancetosection180oftheCompaniesAct,2013
(iv) Foreigntechnicalcollaborations
We further report that the Company has acquired “High Volume Recycled Compounds and TradingDivision” from Vikas Ecotech Limited through a Scheme of Arrangement approved by the Hon’bleNationalCompanyLawTribunal,PrincipalBench,Delhion31stOctober,2018.
ThisReportistobereadwithourletterofevendatewhichisannexedas“Annexure1”andformsanintegralpartofthisreport.
For MSTR & Associates Companies Secretaries
Sd/-Teena Rani
PartnerM. No. 40050
COP No. 21768
Place: New DelhiDate: 12.08.2019
VIKAS MULTICORP LIMITED
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ANNUAL REPORT 2018-19
“Annexure 1”
To,
The Members,
VIKASMULTICORPLIMITED
G-1 34/1, East Punjabi Bagh, New Delhi, West Delhi- 110026
Sub:SecretarialAuditfortheFinancialYearendedMarch31,2019ofevendateistobereadwiththisletter
1) Maintenanceofsecretarialrecordistheresponsibilityofthemanagementofthecompany.Ourresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.
2) WehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsoftheSecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.
3) We have not verified the correctness and appropriateness of financial records and Books of Accounts of thecompany.
4) Whereeverrequired,wehaveobtainedtheManagementrepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.
5) The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is theresponsibilityofmanagement.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.
6) TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityofthecompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.
For MSTR & Associates Companies Secretaries
Sd/-Teena Rani
PartnerM. No. 40050
COP No. 21768
Place: New DelhiDate: 12.08.2019
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ANNUAL REPORT 2018-19
Annexure B
Details pertaining to remuneration as required u/s 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies(Appointment and remuneration of Managerial personnel) Rules, 2014
1. TheratiooftheremunerationofeachdirectortothemedianremunerationoftheemployeesoftheCompanyforthefinancialyear,thepercentageincreaseinremunerationofeachDirector,ChiefFinancialOfficer,ChiefExecutiveOfficer,CompanySecretaryorManager,ifany,inthefinancialyear;-
Name Designation Ratio of Remuneration ofeach Director to the median remuneration of employees
Percentage Increase in Remuneration*
Hari Bhagwan Sharma Whole Time Director 2:1
NotApplicableChandanKumar ChiefFinancialOfficer 3:1
DeepanshuArora CompanySecretary 1.32:1
NootherdirectorswerepaidremunerationduringtheFinancialYear2018-19.
2. The percentage increase in the median remuneration of employees in the financial year.
Therewasnoincreaseintheremunerationofemployeesduringtheyear2018-19hencedisclosureunderthisheadisnotapplicable.
3. The number of permanent employees on the rolls of the Company.
ThenumberofpermanentemployeesontherollsoftheCompanyasonMarch31,2019is16acrossalltheloca-tions.
4. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereofand point out if there are any exceptional circumstances for increase in the managerial re-muneration.
DetailsarenotapplicableasappointmentofManagerialPersonnelwaseffectedduring theyear2018-19only,accordingly,thereisnoreportableincreaseinremunerationofmanagerialpersonnel
ItisherebyaffirmedthattheremunerationpaidduringtheyearisaspertheNominationandRemunerationPolicyoftheCompany.
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Annexure-C
FORM NO. AOC -2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014.
FormforDisclosureofparticularsofcontracts/arrangementsenteredintobythecompanywithrelatedpartiesreferredtoinsubsection(1)ofsection188oftheCompaniesAct,2013includingcertainarmslengthtransactionunderthirdprovisothereto.
DetailsofcontractsorarrangementsortransactionsnotatArm’slengthbasis:NIL
1. DetailsofcontractsorarrangementsortransactionsatArm’slengthbasisandmaterial.
SL. No.
Particulars Details
Name(s)oftherelatedparty&natureofrelationship VikasEcotechLimited
Natureofcontracts/arrangements/transaction (Purchase)
Durationofthecontracts/arrangements/transaction 01/04/2018 to 31/03/2019
Salienttermsofthecontractsorarrangementsortransactionincludingthevalue,ifany
Rs. 4,47,75,750
DateofapprovalbytheBoard 14/05/2018
Amountpaidasadvances,ifany NotApplicable
2. DetailsofcontractsorarrangementsortransactionsatArm’slengthbasisandmaterial.
SL. No. Particulars Details
Name(s)oftherelatedparty&natureofrelationship VikasEcotechLimited
Natureofcontracts/arrangements/transaction Sales
Durationofthecontracts/arrangements/transaction 01/04/2018 to 31/03/2019
Salienttermsofthecontractsorarrangementsortransactionincludingthevalue,ifany
Rs. 26,51,55,098
DateofapprovalbytheBoard 14/05/2018
Amountpaidasadvances,ifany NotApplicable
For Vikas Multicorp Limited
Sd/-
Purshottam Dass Bhoot
Chairman
DIN: 00002974
Date: 12.08.2019
Place: New Delhi
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ANNUAL REPORT 2018-19
Annexure D
A. Conservation of Energy:
InlinewiththeideologyofbuildingabusinessactivitiesaroundEnvironmentFriendlymaterialsandunitsVMListakinganinitiativeonenergyconservationandoptimumutilisationofProEnvironmentoptionsavailablebywayofadoptingalternatesourcesofenergy:
TheCompanyhascommissioned100KWofsolarpanelsatRajasthanwhichwillalsoimprovecostefficiencyforthecompany.
TheCompanyhasalsoorderedarespecificallydesignedEControlPanelsensuringoptimumuseoftheelectricitybeingconsumedinouroperations.Keepingaclosetabonthepowerfactorcalculationsonourelectricitycon-sumptiontargetingbestpossiblethroughputfromtheelectricalenergyconsumedintheplantincurringminimalwastage of energy.
Thecompanyalsostartedworkingoutstepslike
WaterConservation(controlleduseofwaterinourplants),WaterRecycling&RainWaterHarvestingtoconservetheWaterResourceavailablealongsideensuringthatalltheenergyusedfortheseactivitiesisproducedthroughalternateenergysourcestomakeitcompletelyselfsufficientandEnvironmentsupportingsystem.
TheCompanyisdeterminedtocontinueitseffortstoimproveonconservationofresourcesandoptimumutilisa-tionofinputsinalltheoperations.
B. Technology Absorption, Research & Development (R&D):
Technologyabsorption:
TheCompanyisinthetradingindustryandoperatesandmanagesitsacrossIndia.However,noknowhowandtech-nologyhasbeenimportedduringtheyearHowever,effortshavebeenmadetoimbibevariousnewtechnologieslikeGreenBuilding,rainwaterharvesting,useofplumbingfaucets,sewagetreatmentplants.
Research&Development:
TheCompanyduringthefinancialyear2018-19hasnotcarriedoutanyactivitywhichcanbeconstruedasResearch&Development.Thereforethereisnothingtoreportunderthissection.
C. Foreign exchange earnings and outgo:
DuringtheFinancialYear2018-19theCompanyhadforeignexchangeearningsofRs.58,54,731(inflow)andOutgoofRs.60,59,815(Outflow).
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ANNUAL REPORT 2018-19
MANAGEMENT DISCUSSION & ANALYSIS REPORT
YourDirectors’presentCompany’sfirstManagementDiscussionandAnalysisReportforthefinancialyear2018-19.TheCompanycompletedacquisitionof‘RecycledandTradingCompoundsDivision’ofgroupconcern‘VikasEcotechLimited’throughamalgamation.Pursuanttocompletionofsaidmerger,theequitysharesoftheCompanywerelistedattheStock Exchanges on 8th May, 2019.
ThepresentManagementDiscussionandAnalysisReportisbasedontheTradingActivities,PolymerCompoundsandtherecentlyacquiredrecycledcompoundsbusiness.
Industry structure, developments, Opportunities and Threats
AsperanestimateoftheIndiangovernment,thepercapitaplasticsconsumptionwillbedoubledby2022,thiswillresult inpresumablyasurrogatemeasureforeconomicadvancementand increasedadvancedmanufacturing.Withanincreasedplasticmanufacturingandconsumption,IndiaisseenasoneofthebiggestmarketsforPlasticRecyclingbusiness.
AstheCompanyhasacquiredrecyclingdivision from itsgroupentity, itsmanufacturingactivitiesnowcomprisesofrecyclingofmaterialsandcreatingvirgin-equivalentgradePVCcompoundsconsistentinquality&performance.Adi-verserangeofcustomizedproductgradesforhighfireresistance,lowsmokeemissionsandhighstrengthpropertiesarecreatedandtheseproductstendtobeheavymetalfree&non-toxicandusedforavarietyofsafety-criticalindustryapplications.
Sincethisiscreationofvaluefromwaste,ithasimmensepotentialforgrowth,especiallyinanIndianMarketscenariowhichisstillgrowingandstrugglingwithissuessuchaswastemanagement.However,astheproductsoftheCompa-nyareusedasIndustrialrawmaterialsformanyIndustries,anyslowdowninthecustomerindustryorfallingrowthtrajectorymayresultinscarcityofmaterialfortheCompanyorlowermarginsduetohighdependabilityofCompany’sproductsonotherIndustries.
Segment wise /Product wise performance
TheCompanyisundersinglesegmentwhichismanufacturingandtradingofplastic&rubberrawmaterialsandpoly-mercompounds.Sincetheacquisitionof‘RecycledandTradingCompoundsDivision’hasrecentlybeencompletedandfinancialsoftheCompanyhavebeenrepresentedaftertakingeffectofthesaidamalgamation,thetotalturnoveroftheCompanyrepresentsincomefromitscorebusinessactivityonly.Disclosuredetailingeffectsofsaidamalgamationonfinancialsisformingpartofnotestothefinancialstatements.
Future Outlook
Sincescarcityoftheresourcesisamajorandpressingissueforalltheeconomiesworldwide,recyclingofthematerialsisthepresentandfutureofasustainableIndustrialgrowth.Itspotentialliesnotonlyinitslowerinputcostbutalsoitslongtermviability.Withgrowingawarenessofenvironmentprotection,initiativesofgovernments’worldwideandcon-tinuouseffortsonresearchanddevelopmentinfieldofrecyclingmaterials,theplasticsrecyclingindustryisbooming,spreadacrossaninformalamalgamofstreetpickers,smallstart-upsandnon-governmentalentitiesandisfocusedonthesecondaryuseeconomy.
OnesuchexampleofaboveistheEPR(EndoflifeProductRecycling)EnvironmentProtectionRegulations,whichman-datesBrandstoensurerecyclingof thegivenquantityofplasticsusedbythemforpackagingof theirproductsandthereby providing growthopportunities in formof constant supply of factorywaste, rejectedmaterials andplasticscrapsfrommanufactures&collectorsofscraptorecyclers.Thisalsoprovidesforfinancialsupportandconstantde-mandofCompany’srecycledproductsaswell.
Financial Performance
ThefinancialsoftheCompanyarerestatedaftertakingeffectofimpendingamalgamationoftheCompanyhencethefiguresarenotcomparablefrompreviousfinancialyear.Ason31stMarch,2019,thekeyfinancialindicatorsaredis-cussedasunder:
Net worth
TheCompany’snetworthviz.paidupsharecapital,generalreservesandretainedearningsstoodatRs.80.39Crore.
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ANNUAL REPORT 2018-19
Borrowings
TheCompany’sborrowingsexcludingworkingcapitallimitsaggregatedtoRs.8.36Crorecomprisingofsecuredborrow-ingsfrombanksandfinancial institutesofRs.3.80Croreandunsecuredborrowingsinformofinter-corporateloans/advancesandloansfromrelatedpartiesofRs.4.56Crore.Thedebt-equityratiooftheCompanyason31st March, 2019was0.10:1.
Trade Receivables & Trade Payables
TradereceivablesattheendoffinancialyearwasRs.143.86CroreandtradepayablesaggregatedtoRs.90.33Crore.
Current Assets & Current Liabilities
TheCurrentAssetsoftheCompanystoodatRs.186.73CrorewhereasthecurrentliabilitiesaggregatedtoRs.146.26Crore.TheCurrentRatiooftheCompanyasat31stMarch,2019was1.28:1.
Earnings per Share
ThebasicanddilutedEarningsperShare(EPS)asattheendoffinancialyearwas0.029.
Risks, Concerns, Internal Control Systems and their Adequacy
ThemajorriskthatconcernstheCompanyisitsbusinessrisk.TheCompanyissubjectedtoahighbusinessriskintermsofitshighdependabilityonotherIndustriesfordemandofitsproductscarryingthenatureofrawmaterials.
TheCompanyhasariskmanagementandmitigationplan.Periodicchecksarecarriedoutonallsystemsandprocessesaspartofinternalaudit.TheCompany’sinternalcontrolsystemsarecommensuratewiththenatureofitsbusinessandthesizeandcomplexityofitsoperations.TheStatutoryAuditorsalsoevaluatetheefficacyandadequacyofinternalcontrolsystemsincludingcontrolswithrespecttothefinancialstatements,itscompliancewithoperatingsystems,ac-countingproceduresandpoliciesintheCompany.Correctiveactionsareundertakenbasisfindingsofaudits.
Human Resource
HumanResourceCapitalisthemostvaluableassetforanyorganisation.TheCompanyplacestheutmostimportanceonmaintainingcordialemployer-employeerelationsbothatitsadministrativeofficesandplantlocations.TheCompanyhasdevelopedasystemtorewardadequatelyandrecognizeemployeecontributiontowardsitsgrowth.AremunerationpolicyhasalsobeendevelopedandadoptedbytheCompanywhichprovidesforappointmentandremunerationofDirectors,KeyManagerialPersonnelandSeniorManagement.
Disclaimer
StatementsintheManagementDiscussionsandAnalysisdescribingtheCompany’sobjectives,projections,estimates,expectationsare“forward-lookingstatements”withinthemeaningofapplicablesecuritieslawsandregulations.Actualresultscoulddiffermateriallyfromthoseexpressedorimplied.ImportantfactorsthatcouldmakeadifferencetotheCompany’soperationsincludeeconomicconditionsaffectingdemand/supplyandpriceconditionsinthedomesticandoverseasmarketsinwhichtheCompanyoperates,changesintheGovernmentregulations,tax,corporateandotherapplicablelawstogetherwiththeotherincidentalfactors.
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ANNUAL REPORT 2018-19
CORPORATE GOVERNANCE REPORT
TheCompanybelievesinadheringtothebestcorporategovernancepractices.IncompliancewithRegulation34readwithScheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(‘ListingRegulations’),theCompanypresentsitsfirstCorporateGovernanceReport.
COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE
Your Company’s Corporate Governance philosophy emphasises on fair and transparent governance and disclosurepractices. Thisphilosophy isbackedbyprinciplesofConcern,Commitment, Ethics, ExcellenceandResponsibility inits relationshipwith the stakeholders, clients, associates andpublic at large. TheCompanybelieves thatCorporateGovernanceisacontinuousprocessdeeplyrootedandevidentfromthepracticesbeingfollowedbyit.TheCompanythencestrivestoimproveitspracticesandprocedurestoprovideforfairandadequatetransparencyatalllevels.
ThestructureofCorporateGovernanceismanyfoldandensuredatalllevelsbytheExecutiveDirectors,KeyManagerialPersonnel,BoardCommitteesandBoardofDirectors,respectively.TheBusinessoftheCompanyisconductedinthemannercommensuratewiththecorporategovernancephilosophyoftheCompany.
BOARD OF DIRECTORS
COMPOSITION OF THE BOARD
TheBoardofDirectors(“theBoard”)oftheCompanyhaveanoptimumcombinationofExecutive,Non-ExecutiveandIndependentDirectors.PresentlytheBoardcomprisesofsixDirectorsofwhichtwoareexecutive,onenon-executiveand threeare independentDirectors includingoneWomenDirector.TheChairmanof theBoard isan IndependentDirectoreffective1stJuly,2019.
CompositionofBoardason31stMarch,2019andchangesthereinareasunder:
Name of Director CategoryMr.PurushottamDasBhoot1 Chairman&IndependentDirectorMr. Hari Bhagwan Sharma Whole Time DirectorMr. Vikas Garg NonExecutiveDirectorMr.PankajKumarGupta IndependentDirectorMr.KapilGupta2 IndependentDirectorMs.AnubhutiMishra3 IndependentDirectorMr. Vivek Garg4 Managing DirectorMs. Meena Bansal5 IndependentDirector
1. AppointedasChairmanoftheCompanyw.e.f.1stJuly,2019.2. ResignedfromDirectorshipw.e.f.7thJune,2019.3. ResignedfromDirectorshipw.e.f.9thJuly,2019.4. AppointedasManagingDirectorw.e.f.1stJuly,2019.5. AppsointedasIndependentDirectorw.e.f.1stJuly,2019.
Mr.VivekGargandMr.VikasGargarepromoterDirectorsandbeingbrothers,arerelatedtoeachother.Thereisnootherinter-serelationbetweenanyoftheotherDirectors.
MATRIX SETTING OUT THE SKILLS/EXPERTISE/COMPETENCE OF THE BOARD OF DIRECTORS
The Board of Directors have identified the following skills/expertise/competencies fundamental for the effectivefunctioningoftheCompanywhicharecurrentlyavailablewiththeBoard:
Business Understandingofbusinessdynamicsacrossvariousgeographicalmarkets,industryverticalsandregulatoryjurisdictions.
StrategyandPlanning
AbilitytostrategizeandplanforachievementofgoalsoftheCompanyandimplementationofthesame.
Leadership&Management
Leadershipexperience,understandingoforganization,itssystemsandprocessesandabilitytoleadanddirectfunctionsoftheCompanyManagementofmen,machineandmoneyincludingtheriskinvolved.
Governance & Compliance
Insightofgovernancepractices,servingthebestinterestsofallstakeholders,accountability,buildinglongtermeffectivestakeholderengagementsanddrivingcorporateethicsandvalues.
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Financialacumen Understandingoffinancialdataandabilitytoanalysisandinterpretfigures,knowledgeoffinanceasafunctionoforganisation,abilitytotakedecisionsregardingprocurementandusageoffundsinmosteffectivemanner.
BOARD MEETINGS
Duringtheyear,theBoardoftheCompanymet9timesonApril14,2018,June7,2018,July26,2018,September2,2018,September8,2018,November21,2018,January4,2019,January31,2019andMarch1,2019,respectively.ThemaximumgapbetweenthetwoBoardmeetingswaslessthan120days.MeetingsareusuallyheldattheRegisteredOfficeoftheCompanyatG-1,34/1EastPunjabiBagh,NewDelhi110026.
TheagendapapersanddetailednotesarecirculatedtotheBoardwellinadvanceforeverymeeting,whereitisnotpracticabletoattachanydocumenttotheagenda,thesameisplacedbeforetheBoardatthemeetingandinspecialcircumstances,additionalitemsontheagendaaretakenupatthemeetingwiththenecessaryapprovalofChairpersonandDirectorsintermsofCompaniesAct,2013readwithSecretarialStandards.
DetailsofDirectors’attendanceatBoardandLastAnnualGeneralMeeting,DirectorshipswithotherCompaniesincludingnameof listedcompaniesandtheirdesignation inthoseentitiesandChairmanship/MembershipofCommitteesofeachDirector:
Name of Director Attendance Particulars No. of Board Level Committee Memberships/ Chairmanships in other Indian Public Companies
No. of other Directorships
Name of other Listed Entities in which they are Director
Designation held with the Listed entity
No. of BoardMeetingsHeld/Entitledtoattend
Attended AttendanceatLastAGM
Member Chairman
Mr. Hari Bhagwan Sharma
9 9 Yes 0 0 2 0 Whole Time Director
Mr. Vikas Garg 9 9 Yes 0 0 2 1 NonExecutiveDirector
Mr.PurushottamDas Bhoot
9 9 No 2 1 0 0 IndependentDirector
Mr.PankajGupta 9 9 Yes 2 1 0 0 IndependentDirector
Mr.KapilGupta 9 4 No 0 0 0 0 IndependentDirector
Ms.AnubhutiMishra
9 4 No 0 0 0 0 IndependentDirector
InaccordancewiththeListingRegulations,Memberships/ChairmanshipsofonlyAuditCommitteeandStakeholdersRelationshipCommittee/Shareholders’/Investors’GrievanceCommitteeofallpubliclimitedCompanies(includingVikasMulticorpLimited)havebeenconsidered.
INDEPENDENT DIRECTORS
TheIndependentDirectorshaveconfirmedthattheymeetthecriteriaof IndependenceasstipulatedunderSection149(6)oftheCompaniesAct,2013readwiththeRegulation16(1)(c)oftheListingRegulationsandtheyarenotawareofanycircumstancesorsituation,whichexistormaybereasonablyanticipated,thatcouldimpairorimpacttheirabilitytodischargetheirdutieswithanobjectiveindependentjudgmentasanIndependentDirectoroftheCompany.
InopinionoftheBoard,theIndependentDirectorsoftheCompanyfulfilthecriteriaofIndependenceaspertheextantprovisionsofCompaniesAct,2013andListingRegulations.
Mr. Kapil Gupta andMs. AnubhutiMishra, Independent Directors resigned from the Directorship of the Companywitheffectfrom7th June,2019and9thJuly,2019,respectively.BoththeDirectorshaveresignedcitingtheirpersonal
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reasonsandontheirownaccord.Aconfirmationwasreceivedfromthemthattherewerenoothermaterialreasonsthantheonescitedfortheirresignation.DetailedreasonsandconfirmationreceivedfromDirectorsweredulyfiledwiththeStockExchangesandarealsoavailableunder‘CorporateAnnouncements’onwebsiteoftheCompanywww.vikasmulticorp.com.
INDEPENDENT DIRECTORS’ MEETING
A separatemeeting of the Independent Directorswas held on January 4, 2019without the presence of ExecutiveDirectorsornon-independentDirectorsandmembersofthemanagement.TheIndependentDirectorsintheirmeeting,inter-alia:
i. reviewedtheperformanceofnon-independentdirectorsandtheBoardasawhole;
ii. assessedthequality,quantityandtimelinessofflowofinformationbetweentheCompanymanagementandtheBoardthatisnecessaryfortheBoardtoeffectivelyandreasonablyperformtheirduties.
Familiarisation Programme for Independent Directors
Your Company follows a structured orientation and familiarisation programme for Independent Directors whichincludes familiarising through reports/codes/internal policies/presentations to enable them to understand theirrolesandresponsibilities,natureoftheindustryinwhichtheCompanyoperates,businessmodeloftheCompany,itsstrategicandoperatingplans.Further,duringtheyear,presentationswerealsomadefromtimetotimeattheBoardand itscommitteemeetings,onregular intervals,coveringthebusinessandfinancialperformanceoftheCompany,businessoutlook,budget,expansionplans,successionplansetc.ThedetailsofthefamiliarisationprogrammefortheIndependentDirectorsareavailableonthewebsiteoftheCompany.
COMMITTEES OF BOARD OF DIRECTORS
TheBoardhasconstitutedCommitteesforcarryingoutdesignatedfunctionsassignedunderCompaniesAct,2013andListingRegulationsanddelegatedpowerssuitedtotheirrespectiveroles.
TheCommitteesconstitutedbytheBoardofDirectorsoftheCompanyareasunder:
1. AuditCommittee
2. Nomination&Remunerationcommittee
3. Stakeholders’RelationshipCommittee
ThedetailsoftheroleandcompositionofCommitteesoftheBoardincludingnumberofmeetingsheldduringtheyearandattendancethereat,areprovidedbelow.
AUDIT COMMITTEE
TheAuditCommitteecomprisesofthreemembers,allareindependentDirectorsincludingtheChairman.TheChairmanoftheCommitteeisanexperiencedCharteredAccountantandhasanexpertiseinfinancialmatters.AllothermembersoftheCommitteearealsofinanciallyliterate.Duringtheyearunderreview,theAuditCommitteemetthree(3)timesonMay14,2018,September2,2018,andJanuary4,2019withnecessaryquorumbeingpresentatallthemeetings:
Name of Member Status Category No. of Meetings Attended
Mr.PankajKumarGupta Chairman IndependentDirector 3
Mr.PurushottamDasBhoot Member IndependentDirector 3
Mr.KapilGupta* Member IndependentDirector 2
Ms.MeenaBansal** Member IndependentDirector NotApplicable
*Mr.KapilGuptaceasedtobeMemberoftheCommitteew.e.f.7thJune,2019.
**Ms.MeenaBansalwasappointedasMemberoftheCommitteeeffective1st July,2019.
Brief Terms of reference:
TheAuditCommitteeassiststheBoardinitsresponsibilityforoverseeingthequalityandintegrityoftheaccounting,auditingandreportingpracticesoftheCompanyanditscompliancewiththelegalandregulatoryrequirements.
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TheAuditCommitteeoftheCompany,interalia,performsthefollowingfunctions:
a) OverseeingoftheCompany’sfinancialreportingprocessandthedisclosureofitsfinancialinformationtoensurethatthefinancialstatementsarecorrect,sufficientandcredible.
b) Recommending to the Board, the appointment, reappointment, terms of appointment and, if required, thereplacementorremovalofthestatutoryauditorandthefixationofauditfees.
c) Approvingpaymenttostatutoryauditorsforanyotherservicesrenderedbythestatutoryauditors.
d) Reviewing,withthemanagement,theannualfinancialstatementsandauditor’sreportthereonbeforesubmissiontotheBoardforapproval,withparticularreferenceto:
• MattersrequiredtobeincludedintheDirector’sResponsibilityStatementtobeincludedintheBoard’sreportintermsofClause(c)ofSub-Section(3)ofSection134oftheCompaniesAct2013;
• Changes,ifany,inaccountingpoliciesandpracticesandreasonsforthesame;
• Majoraccountingentriesinvolvingestimatesbasedontheexerciseofjudgmentbymanagement;
• Significantadjustmentsmadeinthefinancialstatementsarisingoutofauditfindings;
• Compliancewithlistingandotherlegalrequirementsrelatingtofinancialstatements;
• Disclosureofanyrelatedpartytransactions;and
• Qualificationsinthedraftauditreport.
e) (e)ReviewingthefinancialstatementswithrespecttoitsunlistedSubsidiary(ies),inparticularinvestmentsmadebysuchSubsidiary(ies).
f) Reviewing,withthemanagement,thequarterlyfinancialstatementsbeforesubmissiontotheboardforapproval.
g) Reviewing,withthemanagement,thestatementofuses/applicationoffundsraisedthroughanissue(publicissue,rightsissue,preferentialissue,etc.),thestatementoffundsutilizedforpurposesotherthanthosestatedintheofferdocument/prospectus/noticeandthereportsubmittedbythemonitoringagencymonitoringtheutilisationofproceedsofapublicorrightsissue,andmakingappropriaterecommendationstotheBoardtotakeupstepsinthismatter.
h) Reviewingandmonitoringtheauditor’sindependenceandperformance,andeffectivenessofauditprocess.
i) Approval of any subsequent modification of transactions of the Company with related parties and omnibusapprovalforrelatedpartytransactionsproposedtobeenteredintobytheCompany,subjecttotheconditionsasmaybeprescribed.
j) Scrutinyofinter-corporateloansandinvestments.
k) Valuationofundertakingsorassetsofthelistedentity,whereveritisnecessary.
l) Evaluationofinternalfinancialcontrolsandriskmanagementsystems.
m) Reviewingwiththemanagement,performanceofstatutoryandinternalauditors,adequacyoftheinternalcontrolsystems.
n) Reviewingtheadequacyofinternalauditfunction,ifany,includingthestructureoftheinternalauditdepartment,staffingandseniorityoftheofficialheadingthedepartment,reportingstructurecoverageandfrequencyofinternalaudit.
o) Discussingwithinternalauditorsofanysignificantfindingsandfollowupthereon.
p) Reviewingthefindingsofanyinternalinvestigationsbytheinternalauditorsintomatterswherethereissuspectedfraudorirregularityorafailureofinternalcontrolsystemsofamaterialnatureandreportingthemattertotheboard.
q) Discussionwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaofconcern.
r) Tolookintothereasonsforsubstantialdefaultsinthepaymenttothedepositors,debentureholders,shareholders
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(incaseofnon-paymentofdeclareddividends)andcreditors.
s) RecommendingtotheBoardofDirectorstheappointmentandremovaloftheexternalauditor,fixationofauditfeesandapprovalforpaymentforanyotherservices.
t) Toreviewthefunctioningofthewhistleblowermechanism.
u) Approval of appointment of Chief FinancialOfficer (i.e., thewhole-time FinanceDirector or any other personheading the finance function or discharging that function) after assessing the qualifications, experience andbackground,etc.ofthecandidate.
v) Oversee the vigil mechanism established by the Companyand the chairman of audit committee shall directlyheargrievancesofvictimizationofemployeesanddirectors,whousevigilmechanismtoreportgenuineconcernsinappropriateandexceptionalcases.
w) Mandatorilyreviewthefollowing
• managementdiscussionandanalysisoffinancialconditionandresultsofoperations;
• statement of significant related party transactions(as defined by the audit committee), submitted bymanagement;
• managementletters/lettersofinternalcontrolweaknessesissuedbythestatutoryauditors;•internalauditreportsrelatingtointernalcontrolweaknesses;
• theappointment,removalandtermsofremunerationofthechiefinternalauditorshallbesubjecttoreviewbytheauditcommittee;and
• statementofdeviations;
• quarterlystatementofdeviation(s)includingreportofmonitoringagency,ifapplicable,submittedtostockexchange(s)intermsofSEBIListingRegulations;
• annualstatementoffundsutilizedforpurposesotherthanthosestatedintheofferdocument/prospectus/noticeintermsofListingRegulations.
x) Anyothermatterasmaybeprescribed,fromtimetotime,tobereferredtotheAuditCommitteeintermsoftheCompaniesAct2013/ListingRegulationsoranyotherapplicablestatuteforthetimebeinginforceandtherules,regulationsthereto.”
NOMINATION & REMUNERATION COMMITTEE
TheNomination&RemunerationCommitteehasbeenconstitutedforrecruitmentandrecommendationofindividualsfor appointment as Directors, Key Managerial Personnel and Senior Management Officials of the Company. TheCommitteealsoformulatesandmonitorsimplementationofremunerationpolicyoftheCompany.TheNomination&RemunerationCommitteecomprisesofthreemembersallareindependentDirectorsincludingtheChairman.
Duringtheyearunderreview,theNomination&RemunerationCommitteemetthree(2)timesonSeptember8,2018&January4,2019withnecessaryquorumbeingpresentatallthemeetings:
Name of Member Status Category No. Of Meetings Attended
Mr.PankajGupta Chairman IndependentDirector 2
Mr.PurushottamDasBhoot Member IndependentDirector 2
Mr.KapilGupta* Member IndependentDirector 2
Ms.MeenaBansal** Member IndependentDirector NotApplicable
*Mr.KapilGuptaceasedtobeMemberoftheCommitteew.e.f.7thJune,2019.
**Ms.MeenaBansalappointedasMemberoftheCommitteeon1stJuly,2019
TheNomination&RemunerationCommitteeoftheCompany,inter alia,performsthefollowingfunctions:
a) Formulationofthecriteriafordeterminingqualifications,positiveattributesandindependenceofadirectorandrecommendingtotheBoardapolicyrelatingtotheremunerationofthedirectors,keymanagerialpersonnelandotheremployees.
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b) FormulationofcriteriaforevaluationofperformanceofindependentdirectorsandtheBoard.
c) DevisingapolicyondiversityoftheBoard.
d) Identifyingpersonswhoarequalifiedtobecomedirectorsandwhomaybeappointedinseniormanagementinaccordancewiththecriterialaiddown,andrecommendingtotheBoardtheirappointmentandremoval.
e) Extensionorcontinuanceofthetermsofappointmentoftheindependentdirectors,onthebasisofthereportofperformanceevaluationofindependentdirectors.
f) Identifyingpersonswhoarequalifiedtobecomedirectorsandwhomaybeappointedinseniormanagementinaccordancewiththecriterialaiddown,recommendtotheboardofdirectorstheirappointmentandremovalandcarryoutevaluationofeverydirector’sperformance(includingthatofindependentdirectors).
g) PerformingsuchotheractivitiesasmaybedelegatedbytheBoardorspecified/providedundertheCompaniesAct2013orbytheSEBI(Listing)Regulationsorbyanyotherapplicablelaworregulatoryauthority.
Performance Evaluation Criteria
TheNomination&RemunerationCommitteecarriedouttheAnnualPerformanceevaluationofDirectorsindividually,including the Chairman and the Board evaluated the overall effectiveness of the Board of Directors including itscommitteesbasedontheratingsgivenbytheNomination&RemunerationCommitteeoftheCompany.Theevaluationis largely based on parameters like attendance, participation in discussion of Board and Committee meetings,effectivenessofChairmanincarryingoutrolesofrespectivecommittees,valueadditionbysuggestionsorinnovationandleadershipetc.
The performance evaluation of the IndependentDirectorswas carried out by the entire Board on the criteria andframeworkadoptedbyBoard(theconcerneddirectorbeingevaluateddidnotparticipate).TheBoardhasexpresseditssatisfactiononitsownperformanceandperformanceoftheDirectorsincludingIndependentDirectors.
Remuneration of Directors
DetailsofRemunerationpaidtoDirectorsduringtheyearendedMarch31,2019:
Name of Director Category Salary (Amount in Rupees)
Perquisites & PF (Amount in Rupees)
Total (Amount in Rupees)
Mr. Hari Bhagwan Sharma
Whole Time Director 5,90,129 Nil 5,90,129
Non-ExecutiveDirectorswerenotpaidanyremunerationduringthefinancialyear2018-19.
TheCompanypresentlydoesnothaveanEmployeeBenefitSchemeinoperationandhencenostockoptionshavebeengrantedtoanyoftheDirectorsoftheCompany.Mr.VikasGarg,nonexecutive&promoterDirectoroftheCompanywasholding20,56,78,299equitysharesason31stMarch,2019.Noneoftheothernon-executiveDirectorsareholdinganysharesintheCompanyand
NoneoftheDirectorsareholdinganyconvertibleinstrumentshavingarighttoapply/optionofconversionofthesameinequitysharesoftheCompany.
Criteria for making payments to Non-Executive Directors including all pecuniary relationship or transactions of Non- Executive Directors
TheNon-ExecutiveandIndependentDirectorsarenotpaidanyremunerationotherthansittingfeesforattendingthemeetingsoftheBoardoritsCommitteesasapprovedbytheBoardfromtimetotime.
Pecuniaryrelationship(ifany)otherthanremunerationwithanyofthenon-executiveDirectorisdisclosedaspartofnotestoFinancialStatementsundernoteof“RelatedPartyTransactions”.
STAKEHOLDERS’ RELATIONSHIP COMMITTEE
Stakeholders’RelationshipCommitteeisconstitutedtomanageservicingtotheshareholdersoftheCompanyandtolookintoaspectsrelatedthereto,includingredressalofcomplaints,transfer/transmissionofsecurities,issueofduplicatesharesetc.TheCommitteecomprisesofthreeMembersallbeingIndependentDirectorsincludingtheChairman.
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ANNUAL REPORT 2018-19
Duringtheyearunderreview,one(1)meetingofStakeholders’RelationshipCommitteewasheldonNovember22,2018andMarch1,2019.
Name of Member Status Category No. of Meetings Attended
Mr.PankajGupta Chairman IndependentDirector 1
Mr.PurushottamDasBhoot Member IndependentDirector 1
Mr.KapilGupta* Member IndependentDirector 1
Ms.MeenaBansal** Member IndependentDirector NotApplicable
*Mr.KapilGuptaceasedtobeMemberoftheCommitteew.e.f.7thJune,2019.
**Ms.MeenaBansalappointedMemberoftheCommitteeon1stJuly,2019
ThetermsofreferenceoftheStakeholders’RelationshipCommitteeincludesthefollowing:
a) Monitoringthegrievanceandredressalofallsecurityholders’grievancessuchascomplaintsrelatedtononreceiptofallotment/refund,reviewofcasesforrefusaloftransfer/transmissionofshares,includingnonreceiptofsharecertificates,non-receiptofbalancesheet,nonreceiptofdeclareddividends,non-receiptofannualreports,etc.andassistingwithquarterlyreportingofsuchcomplaints.
b) Allottingofequityshares,givingeffecttoalltransfer/transmissionofsharesanddebentures,dematerialisationofsharesandre-materialisationofshares,splittingandissuingofduplicate/consolidatedsharecertificates,complyingwithalltherequirementsrelatedtoshares,debenturesandothersecuritiesfromtimetotime.
c) Reviewingstatutorycompliancespertainingtoshare/securitycapital,processes,shareholdersanddepositories.
d) OverseeingtheperformanceoftheregistrarsandtransferagentsofourCompanyandtorecommendmeasuresforoverallimprovementinthequalityofinvestorservices.
e) Carrying out any other function as is referred by the Board from time to time or enforced by any statutorynotification/amendmentormodificationasmaybeapplicable.
EXECUTIVE COMMITTEE
TheExecutiveCommitteewasconstitutedon1stJuly,2019.TheroleoftheExecutiveCommitteeistoexpeditiouslydecidebusinessmatters of routinenature and implementationof strategic decisions of theBoard. TheCommitteefunctionswithintheapprovedframeworkanddirectionsoftheBoard.TheCommitteealsoperformsotheractivitiesasperthetermsofreferenceapprovedbytheBoard.TheCommitteecomprises2(Two)ExecutiveDirectorsand1(One)NonExecutiveDirector.TheCompanySecretaryof theCompanyactsasSecretary to theExecutiveCommittee.TheCompositionofExecutiveCommitteeisgivenbelow:
Name of Member Status Category
Mr. Vivek Garg Chairman Managing Director
Mr. Hari Bhagwan Sharma Member Whole-Time Director
Mr. Vikas Garg Member Non-ExecutiveDirector
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ANNUAL REPORT 2018-19
GENERAL BODY MEETING
Thedate,timeandvenueofthelastthreeAnnualGeneralMeetingandExtra-OrdianryGeneralMeetingsheldduringtheyeararegivenbelow:
Financial year
Date Type of Meeting
Time Venue Special Resolutions Passed
2018-19 November 9, 2018
Extra-OrdinaryGeneral Meeting
11.00A.M G-1, 34/1, East Punjabi Bagh, New Delhi -110026
AppointmentandContinuationofMr.PurushottamDassBhootasanIndependentDirector
2018-19 November 3, 2018
Extra-OrdinaryGeneral Meeting
11.00A.M G-1, 34/1, East Punjabi Bagh, New Delhi -110026
1. IncreaseofAuthorisedShareCapitalofthecompany
2. AlterationintheCapitalClauseofMemorandumofAssociation
2018-19 September29, 2018
AnnualGeneralMeeting
02:00P.M G-1, 34/1, East Punjabi Bagh, New Delhi -110026
Nospecialresolutionswerepassed
2017-18 September29, 2017
AnnualGeneralMeeting
03:00P.M G-1, 34/1, East Punjabi Bagh, New Delhi -110026
Nospecialresolutionswerepassed
2016-17 September30, 2016
AnnualGeneralMeeting
02:00P.M G-1, 34/1, East Punjabi Bagh, New Delhi -110026
1. Conversion into Public LimitedCompany
2. AdoptionofnewsetofArticlesofAssociation
(Resolution Rescinded)
Nospecialresolution(s)was/wereproposedorpassedbywayofpostalballotduringlastyear.
Asondateof thisReport, there isno special resolutionproposed tobepassed throughpostal ballotonorbeforeensuingAnnualGeneralMeeting.
MEANS OF COMMUNICATION
Information like Quarterly/Half yearly/Annual Financial Results and press releases / corporate announcements onsignificantdevelopments intheCompanyaremadeavailablethroughwebsiteoftheCompanywww.vikasmulticorp.comandsubmittedtotheStockExchanges.Resultsarealsopublishedinnewspapers..
TheFinancialResultsoftheCompanyaregenerallypublishedinFinancialExpressandJansatta.
DetailsofCompany’sbusiness,financial information, investorpresentations, shareholdingpattern, compliancewithcorporategovernance,policies,contact informationofthedesignatedofficialsoftheCompanywhoareresponsibleforassistingandhandlinginvestorgrievancesincludingallothermandatorydisclosuresarepromptlyandprominentlydisplayedonthewebsiteoftheCompanyatwww.vikasmulticorp.com
PROHIBITION OF INSIDER TRADING
Duringtheyearunderreview,theCompanyhasadoptedtheCodeofConductforRegulation,MonitorandReportingofInsiderTradingintermsofamendedSEBI(ProhibitionofInsiderTrading)Regulations,2015asnotifiedbytheSecuritiesandExchangeBoardofIndia.ThecodeforfairdisclosurehasalsobeenadoptedbytheCompanyeffectiveitsdateoflistingandisavailableonwebsiteoftheCompanywww.vikasmulticorp.com.
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ANNUAL REPORT 2018-19
GENERAL SHAREHOLDER INFORMATION
A. ANNUAL GENERAL MEETING
Day&Date : Thursday,September26,2019
Venue : HaryanaMaitriBhawan
Time : 11:30A.M.
Cut-offdate : September19,2019
B. FINANCIAL YEAR
TheFinancialYearoftheCompanystartsfrom1stdayofAprilandendson31stdayofMarchofnextyear.
FinancialCalendar2020(tentative)forapprovalofResults:
FirstQuarterResults : July16,2019
SecondQuarterResults : First/SecondweekofNovember,2019
ThirdQuarterResults : First/SecondweekofFebruary,2020
AuditedAnnualResultsfortheyear : Third/FourthweekofMay,2020
endingonMarch31,2020:
C. DIVIDEND PAYMENT DATE
TheDirectorsofthecompanyhavenotrecommendedanydividendfortheFinancialYear2018-19.
D. NAME AND ADDRESS OF STOCK EXCHANGE AND DATEOF LISTING
Sr.No
Name and address of the Stock Exchange Date of Listing Stock Code
1. NationalStockExchangeofIndiaLimited(C-1, Block G, Bandra Kurla Complex Bandra (East), Mumbai 400 051)
May 8, 2019 VIKASMCORP
2. BSELimited(P. J. Towers, Dalal Street, Mumbai 400001)
May 8, 2019 542655
ListingfeesfortheFinancialYear2019-20haspaidbytheCompanytoBSELimitedandNationalStockExchangeofIndiaLimited
E. STOCK MARKET DATA & STOCK PERFORMANCE
EquitySharesof theCompanywere listedon theStockExchangesonMay8,2019,hence thedetailsof stockmarketdataanddisclosurepertainingtoStockperformanceforfinancialyear2018-19arenotapplicable.
F. SHARE TRANSFER AGENT
Alltheworkrelatedtothesharesheldinthephysicalformaswellassharesheldintheelectronic(demat)formisbeingdoneatonesinglepointandforthispurposeSEBIregisteredRegistrarandSharetransferAgenthasbeenappointed,whosedetailsaregivenbelow.
AlankitAssignmentsLimitedRegisteredOff:205-208,AnarkaliComplexJhandewalanExtensionNewDelhi110055CorporateOff:4E/2JhandewalanExtensionNew Delhi 110055Tel.:+9111-42541234Fax:+9111-23552001E-mail:[email protected]:www.alankit.com
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ANNUAL REPORT 2018-19
G. SHARE TRANSFER SYSTEM
Effective1stApril,2019,transferofSharesinphysicalformisnotpermissibleunderListingRegulations.ShareholdersarethusadvisedtoconverttheirsharesinDematerialised/Electronicform.Notransferorallotmentofshareswillbeapprovedinphysicalform.
TransferofEquitySharesindematerialisedformisdonethroughdepositorieswithnoinvolvementoftheCompany.
H. DISTRIBUTION OF SHAREHOLDING
TheshareholdingdistributionofequitysharesasonMarch31,2019isgivenhereunder:
Number of Equity Shares Held
Number of Shareholders
% of Total Shareholders
Number of Shares Held
% Shareholding
1-5000 46896 93.605 3,75,79,522 5.664
50,001-10,000 1587 3.168 1,22,22,419 1.842
10,001-20,000 818 1.633 1,18,74,960 1.79
20,001-30,000 264 0.527 65,80,270 0.992
30,001-50,000 215 0.429 88,81,118 1.339
50,001-1,00,000 159 0.317 1,16,95,672 1.763
1,00,001-Above 161 0.321 57,46,61,534 86.611
I. CATEGORY WISE SHAREHOLDING
Description Total No. of equity Shares held as on March 31, 2019
% Shareholding
Promoters 41,62,03,881 62.73
ResidentIndividuals 13,33,28,288 20.095
Banks 1,17,752 0.018
NBFCs 1,29,487 0.020
NonResidentIndianRepatriable
30,47,736 0.459
NonResidentIndian(NonRepatriable)
8,22,494 0.124
HUF 26,48,398 0.399
Clearing Members 11,86,316 0.179
J. DEMATERIALIZATION OF SHARES
AsonMarch31,2019,99.41%ofthetotalequitysharesoftheCompanywereheldindematerialisedform.
K. OUTSTANDING CONVERTIBLE INSTRUMENTS
TheCompanydoesn’thaveanyOutstandingConvertibleInstrumentshavinganyimpactontheequity.
L. COMMODITY PRICE RISK OR FOREIGN EXCHANGE RISKAND HEDGING ACTIVITIES
TheCompanyhasnotundertakenanyforexorhedgingtransactionsduringtheyearunderreview.
M. FACTORY LOCATION
TheCompanyhasasinglemanufacturingfacilitylocatedatG-83,VigyanNagar,RecoIndustrialarea,Shahjahanpur,Rajasthan 301706.
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ANNUAL REPORT 2018-19
N. ADDRESS FOR CORRESPONDENCE
TheinvestorsmayaddresstheirqueriestotheCompanyattheaddressmentionedhereinbelow:
Mr.DeepanshuAroraCompanySecretary&ComplianceOfficerG-134/1VikasApartments,EastPunjabiBaghNew Delhi-110026Tel:+911140450110E-mail:[email protected];[email protected]
OTHER DISCLOSURES
Related Party Transactions
TheCompanyhasformulatedapolicyonMaterialRelatedPartyTransactionsanddealingwithRelatedPartyTransactionsandthesameisavailableontheCompany’swebsiteatwww.vikasmulticorp.com.
AllRelatedPartyTransactionsareplacedbefore theAuditCommittee forpriorapproval.Thedetailsof relatedpartytransactionsenteredintobytheCompanyarealsoreviewedbytheAuditCommittee.DetailsofRelatedPartyTransactionsareareprovidedinthenotestotheFinancialStatements.
Statutory Compliances/Penalty
Therearenopenaltiesorstrictures imposedon theCompanybytheStockExchangesorSEBIoranyotherstatutoryauthorityonanymatterrelatedtocapitalmarkets.
Vigil Mechanism /Whistle Blower Policy
TheCompanyhasadoptedaWhistleBlowerPolicyforreportingtheinstancesofmisconductwhichisuploadedonthewebsite of the Company atwww.vikasmulticorp.com.Accordingly, Directors, employees or any other personhavingdealings with the Company may report such instancesto the Chairman of Audit Committee.Confidentiality tobemaintainedofsuchreportinganditwillbeensuredthattheWhistleBlowersarenotsubjectedtoanydiscrimination.
Compliance with Mandatory and Non-Mandatory Requirements under Chapter IV of Listing Regulations
The Company has compliedwith all themandatory requirements of Listing Regulations. The Company also strivesto adopt nonmandatory requirements to the extent possible, details of non-mandatory requirements adopted byCompanyareasunder:
1. Chairman
TheBoardhasappointedMr.PurushottamDassBhoot,an IndependentDirectorasChairmanof theCompanyeffective1stJuly,2019.
2. Separation of office of CEO and Chairman
TheCompanyhasanIndependentDirectorasitsChairmanandhasalsoappointedanon-DirectorChiefExecutiveOfficertomanageaffairsoftheCompany.
3. Modified Opinion(s) in Audit Report
Thereisnomodifiedopinion(s)intheAuditorsReportforthefinancialyear2018-19issuedbytheAuditorsoftheCompany.
4. Reporting of Internal Auditor
TheInternalAuditorreportstotheAuditCommittee.
Disclosure on Material Subsidiaries
TheCompanydoesnothaveasubsidiaryhencerequirementofdraftingpolicyondeterminationofmaterialsubsidiaryarenotapplicabletotheCompany.
Details of utilization of funds raised during the year
TheCompanyhasnotraisedfundsthroughpreferentialallotmentorqualifiedinstitutionsplacementasspecifiedunder
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ANNUAL REPORT 2018-19
Regulation32(7A)duringthefinancialyear2018-19.
Certificate on Non-Disqualification of Directors
AcertificatefromPracticingCompanySecretarycertifyingthatnoneoftheDirectorsontheboardoftheCompanyhavebeendebarredordisqualifiedfrombeingappointedorcontinuingasaDirectorbytheSecuritiesandExchangeBoardofIndia/MinistryofCorporateAffairsoranysuchstatutoryauthorityformspartofthethisreport.
Total fees for all services paid by the Company to the statutory auditor and all entities in the network firm/network entity of which the statutory auditor is a part
ThetotalfeespaidtotheM/sGoyal&NagpalCo,StatutoryAuditorbytheCompanyfortheFinancialYear2018-19isRs.7Lakhs.
Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)Act, 2013
DuringthefinancialyearendedMarch31,2019,theCompanyhasnotreceivedanycomplaintinrelationtotheSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013
Reconciliation of Share Capital Audit
TheReconciliationofShareCapitalAuditisconductedbytheCompanySecretaryinpracticetoreconcilethetotaladmittedcapitalwithNationalSecuritiesDepositoryLimitedandCentraldepositoryServices(India)Limited(“Depositories”),thetotalissuedandlistedcapital.Theauditconfirmsthatthetotalissued/paidupcapitalisinagreementwiththeaggregateofthetotalnumberofsharesinphysicalformandtotalnumberofsharesindematerialisedform(heldwithdepositories)andthattherequestfordematerializationofsharesareprocessedbytheR&TAgentwithinthestipulatedperiodof21(TwentyOne)daysanduploadedwiththeconcerneddepositories.
Information on Deviation from Accounting Standards, if any
TheCompanyhasadoptedIndianAccountingStandards(IndAS)inpreparationofannualaccountsfortheFinancialYear2018-19.
Disclosure of Compliance with the Corporate Governance requirements
TheCompanyhas compliedwith theapplicableprovisionsof ListingRegulations includingRegulation17 to27andRegulation46.
TheCompanysubmitsaquarterlycompliancereportoncorporategovernancesignedbytheComplianceOfficertotheStockExchangewithin15(fifteen)daysfromthecloseofeveryquarter.SuchquarterlycompliancereportonCorporateGovernanceisalsopostedonthewebsiteoftheCompany.
ACertificatefromM/sMSTR&Associates,PracticingCompanySecretaryconfirmingcompliancewiththeconditionsoftheCorporateGovernanceasstipulatedundertheListingRegulations,isformingpartofthisReport.
CEO / CFO certification
TocomplywiththeRegulation17(8)ofSEBI(LODR)Regulations,theWholetimeDirectorandtheChiefFinancialOfficerhavecertifiedthatthefinancialstatementspresentatrueandfairviewoftheCompany’saffairsandareincompliancewithexistingaccountingstandards.ThesaidCertificateisalsoformingpartofthisReport.
Code of Conduct
TheBoardofDirectorsoftheCompanyhasadoptedaCodeofConductforDirectorsandSeniorManagementPersonnel.AcopyofthecodeisavailableonCompany’swebsitewww.vikasmulticorp.com.SincetheSecuritiesoftheCompanywerelistedonExchangesonMay8,2019,declarationofcomplianceforthefinancialyear2018-19isnotapplicable.
For Vikas Multicorp LimitedSd/-
Purshottam Dass BhootChairman
DIN: 00002974Date: 12.08.2019 Place: New Delhi
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ANNUAL REPORT 2018-19
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and DisclosureRequirements)Regulations,2015)
To,
The Members of
VIKAS MULTICORP LIMITED
G-1 34/1, East Punjabi Bagh New Delhi-110026
Wehaveexaminedtherelevantregisters,records,forms,returnsanddisclosuresreceivedfromtheDirectorsofVikasMulticorpLimitedhavingCINU25111DL1995PLC073719andhavingregisteredofficeatG-134/1,EastPunjabiBaghNewDelhiWestDelhiDL110026(hereinafterreferredtoas‘theCompany’),producedbeforemebytheCompanyforthepurposeofissuingthisCertificate,inaccordancewithRegulation34(3)readwithScheduleVPara-CSubclause10(i)oftheSecuritiesExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.
Inmyopinionandtothebestofmyinformationandaccordingtotheverifications(includingDirectorsIdentificationNumber(DIN)statusattheportalwww.mca.gov.in)asconsiderednecessaryandexplanationsfurnishedtomebytheCompany&itsofficers,IherebycertifythatnoneoftheDirectorsontheBoardoftheCompanyasstatedbelowfortheFinancialYearendingonMarch31,2019havebeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectorsofaCompanybytheSecuritiesandExchangeBoardofIndia,MinistryofCorporateAffairs,oranycourtoranyotherStatutoryAuthority:
S. No. Name of Director DIN Date of Appointment in Company
1. Mr.PurushottamDassBhoot 00094087 26/04/2017
2. Mr. Vikas Garg 00255413 07/06/2013
3. Mr. Vivek Garg 00255443 01/07/2019
4. Mr. Hari Bhagwan Sharma 02542653 01/09/2015
5. Mr.PankajKumarGupta 07003962 15/11/2016
6. Ms. Meena Bansal 08400953 01/07/2019
Mr.VivekGargappointedasanadditionaldirectoroftheCompanyw.e.f.01.07.2019.
Ms.MeenaBansalappointedasanadditionaldirectoroftheCompanyw.e.f.01.07.2019.
Ensuring the eligibility for the appointment / continuity of everyDirector on theBoard is the responsibility of themanagement of the Company.Our responsibility is to express an opinion on these based on our verification. ThiscertificateisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.
For MSTR & Associates Companies Secretaries
Sd/-Teena Rani
PartnerM. No. 40050
COP No. 21768Place: New DelhiDate: 12.08.2019
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ANNUAL REPORT 2018-19
CORPORATE GOVERNANCE CERTIFICATE
To,The Members ofVIKASMULTICORPLIMITEDG-1 34/1, East Punjabi Bagh, New Delhi -110026
WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyVikasMulticorpLimited(“theCompany”),forthefinancialyearendedMarch31,2019asstipulatedunderRegulations17to27andclauses(b)to(i)ofRegulation46(2)andParaC,DandEofScheduleVtotheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(“ListingRegulations”).(TheCompanyhasbeenlisteditsequitysharesontheBSELimitedandNationalStockExchangeLimitedw.e.f.May08,2019.Therefore,theapplicabilityofCorporateGovernanceontheCompanyshallbefromthatdayi.e.May08,2019.)
ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityofthemanagementoftheCompany.Ourexaminationwaslimitedtoproceduresandimplementationthereof,adoptedbytheCompanyforensuringthecom-plianceoftheconditionsofCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythattheCom-panyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedunderRegulations17to27andclauses(b)to(i)ofRegulation46(2)andParaC,DandEofScheduleVtotheListingRegulations.
WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficien-cyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.
For MSTR & Associates Companies Secretaries
Sd/-Teena Rani
PartnerM. No. 40050
COP No. 21768
Place: New DelhiDate: 12.08.2019
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ANNUAL REPORT 2018-19
CEO’S/CFO’S CERTIFICATE
We,VijayKumarSharma,ChiefExecutiveOfficerandChandanKumar,ChiefFinancialOfficerofVikasMulticorpLimited,tothebestofourknowledgeandbelief,certifythat:
a. Wehavereviewedthefinancialstatementsandthecashflowstatementfortheyearended31stMarch,2019andthattothebestofourknowledgeandbelief:
i. thesestatementsdonotcontainanymateriallyuntruestatementoromitanymaterialfactorcontainstate-ments,thatmightbemisleading;
ii. thesestatementstogetherpresentatrueandfairviewoftheCompany’saffairsandareincompliancewithexistingaccountingstandards,applicablelawsandregulations.
b. Thereare,tothebestofourknowledgeandbelief,notransactionsenteredintobytheCompanyduringtheyearwhicharefraudulent,illegalorviolativeoftheCompany’scodeofconduct.
c. We accept responsibility for establishing andmaintaining internal controls for financial reporting and thatwehaveevaluatedtheeffectivenessofinternalcontrolsystemsoftheCompanypertainingtofinancialreportingandwehavedisclosed,totheauditorsandtheAuditCommittee,whereverapplicable,deficienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichweareawareandthestepswehavetakenorproposetotaketorectifythesedeficiencies.
d. WehaveindicatedtotheauditorsandtheAuditCommittee,whereverapplicable,
i. significantchangesininternalcontroloverfinancialreportingduringtheyear;
ii. significantchangesinaccountingpoliciesduringtheyearandthatthesamehavebeendisclosedinthenotestothefinancialstatements;and
iii. Instancesofsignificant fraudofwhichwehavebecomeawareandthe involvementtherein, ifany,of themanagementoranyemployeehavingasignificantroleintheCompany’sinternalcontrolsystemoverfinancialreporting.
For Vikas Multicorp Limited For Vikas Multicorp Limited Sd/- Sd/-
(Vijay Kumar Sharma) (Chandan Kumar)New Delhi, August 12, 2019 Chief Executive officer Chief Financial officer
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ANNUAL REPORT 2018-19
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF VIKAS MULTICORP LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
WehaveauditedtheaccompanyingstandalonefinancialstatementsofVikasMulticorpLimited(“theCompany”),whichcomprisetheBalanceSheetasatMarch31,2019,theStatementofProfitandLoss(includingOtherComprehensiveIncome),theStatementofChangesinEquityandtheStatementofCashFlowsfortheyearendedonthatdate,andasummaryof thesignificantaccountingpoliciesandotherexplanatory information (hereinafterreferredtoas“thestandalonefinancialstatements”).
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalonefinancialstatementsgivetheinformationrequiredbytheCompaniesAct,2013(“theAct”)inthemannersorequiredandgiveatrueandfairviewinconformitywiththeIndianAccountingStandardsprescribedundersection133oftheActreadwiththeCompanies(IndianAccountingStandards)Rules,2015,asamended,(“IndAS”)andotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2019,theprofitandtotalcomprehensiveloss,changesinequityanditscashflowsfortheyearendedonthatdate.
Basis for Opinion
WeconductedourauditofthestandalonefinancialstatementsinaccordancewiththeStandardsonAuditingspecifiedundersection143(10)oftheAct(SAs).OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor’s Responsibilities for the Audit of the Standalone Financial Statements sectionofour report.Weare independentoftheCompany inaccordancewith theCodeofEthics issuedby the InstituteofCharteredAccountantsof India(ICAI)togetherwiththe independencerequirementsthatarerelevanttoourauditofthestandalonefinancialstatementsundertheprovisionsoftheActandtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesin accordancewith these requirements and the ICAI’s Codeof Ethics.Webelieve that the audit evidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthestandalonefinancialstatements.
Key Audit Matters
Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthestandalone financial statements of the current period. Thesematters were addressed in the context of our auditof the standalonefinancial statementsasawhole,and in formingouropinion thereon,andwedonotprovide aseparateopiniononthesematters.Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatterstobecommunicatedinourreport.
- During the year company has acquired high volume “ Recycled Compounds and Trading Division” Pursuant todemergeroftradingunitofM/sVikasEcotechLimitedw.e.f.01.04.2017intermsoforderdated06thNovember,2018issuedbyHon’bleNationalCompanyLawTribunal.Sales/purchaseandexpensesofdemergedunithasbeenallocatedasperNoteNo.2.1.3.
-Companyhasenteredaspartnerinpartnershipbusinesscarriedonundername&styleM/sRaviCropScience.ShareofprofitofthecompanyinprofitsofsaidfirmhasnotbeenincludedinthesefinancialresultsasperNoteNo.2.18.
-MajorFirehappenedintheGodownatRajasthanofthecompany.Ithascometoournoticethattherehassignificantlossofstockinthefirebutexactvaluehasyetnotbeendetermined.
-ClosingInventoriesinRealestatedivisionasperNoteNo.6hasbeenvalueatcost.AsperIndianAccountingstandard-2valueofsaidpropertywasrequiredtobereportedatlowerofcostorNetrealizablevaluebutinabsenceofauthenticatedNetRealizablevaluefiguresaidpropertieshasbeenvaluedatcost.
Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
TheCompany’sBoardofDirectorsisresponsibleforthepreparationoftheotherinformation.TheotherinformationcomprisestheinformationincludedintheManagementDiscussionandAnalysis,Board’sReportincludingAnnexure
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ANNUAL REPORT 2018-19
toBoard’sReport,BusinessResponsibilityReport,CorporateGovernanceandShareholder’sInformation,butdoesnotincludethestandalonefinancialstatementsandourauditor’sreportthereon.
Ouropiniononthestandalonefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyform of assurance conclusion thereon.
Inconnectionwithourauditofthestandalonefinancialstatements,ourresponsibilityistoreadtheotherinformationand, indoingso,considerwhethertheother information ismaterially inconsistent with the standalone financialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstatedIf,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.
Management’s Responsibility for the Standalone Financial Statements
TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)oftheActwithrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformance,totalcomprehensiveincome,changesinequityandcashflowsoftheCompanyinaccordancewith the IndAS and other accounting principles generally accepted in India. This responsibility also includesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;making judgmentsandestimatesthatarereasonableandprudent;anddesign, implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompleteness of the accounting records, relevant to the preparation andpresentationof the standalone financialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.
Inpreparingthestandalonefinancialstatements,managementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeither intends to liquidate theCompanyor to ceaseoperations,orhasnorealisticalternativebuttodoso.
TheBoardofDirectorsareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthestandalonefinancialstatementsasawholearefree frommaterialmisstatement,whetherdue to fraudorerror, and to issueanauditor’s report that includesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesestandalonefinancialstatements.
Aspartofanaudit inaccordancewithSAs,weexerciseprofessional judgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
• Identifyandassesstherisksofmaterialmisstatementofthestandalonefinancialstatements,whetherduetofraudorerror,designandperformauditprocedures responsive to those risks, andobtainaudit evidence thatinsufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
• Obtainanunderstandingofinternalfinancialcontrolsrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheCompanyhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.
• Evaluate theappropriatenessof accountingpoliciesusedand the reasonablenessof accountingestimatesandrelateddisclosuresmadebymanagement.
• Conclude on the appropriateness ofmanagement’s use of the going concern basis of accounting and, basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmay
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cast significantdoubton theCompany’sability tocontinueasagoingconcern. Ifweconclude thatamaterialuncertainty exists,we are required to draw attention in our auditor’s report to the related disclosures in thestandalonefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including thedisclosures,andwhetherthestandalonefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
Materialityisthemagnitudeofmisstatementsinthestandalonefinancialstatementsthat,individuallyorinaggregate,makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthefinancialstatements.
Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirementsregarding independence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.
Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthestandalonefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
Report on Other Legal and Regulatory Requirements
1. AsrequiredbySection143(3)oftheAct,basedonourauditwereportthat:
a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofourauditexceptvalueofinventoriesofimmovablepropertiesasstatedinkeyauditmatters.
b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks.
c) TheBalanceSheet,theStatementofProfitandLossincludingOtherComprehensiveIncome,StatementofChangesinEquityandtheStatementofCashFlowdealtwithbythisReportareinagreementwiththerelevantbooks ofaccount.
d) Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeIndASspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.
e) OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsasonMarch31,2019takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2019frombeingappointedasadirectorintermsofSection164(2)oftheAct.
f) WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportin“AnnexureA”.Ourreportexpressesanunmodifiedopinionon theadequacyandoperatingeffectivenessof the Company’sinternalfinancialcontrolsoverfinancialreporting.
g) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewiththerequirementsofsection197(16)oftheAct,asamended:
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ANNUAL REPORT 2018-19
In our opinion and to the best of our information and according to the explanations given to us, theremunerationpaidbytheCompanytoitsdirectorsduringtheyearis inaccordancewiththeprovisionsofsection197oftheAct.
h) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,asamendedinouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:
i. TheCompany issubject to legalproceedingsandclaims,whichhavearisen in theordinarycourseofbusiness. The Management does not reasonably expect that these legal actions, when ultimatelyconcludedanddetermined,willhaveamaterialandadverseeffectontheCompany’sresultsofoperationsorfinancialcondition.
ii. Therearenomaterialforeseeablelossesonlongtermcontractsincludingderivativecontractstherefore,nosuchprovisionisrequiredtobemade.
iii. TherehavebeennorequirementsoftransferringamountstotheInvestorEducationandProtectionFundofIndiabytheCompany.
2. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”)issuedbytheCentralGovernmentintermsofSection143(11)oftheAct,wegivein“AnnexureB”astatementonthemattersspecifiedinparagraphs3and4oftheOrder.
ForGOYAL NAGPAL & CO.Chartered Accountants
(FRN.018289C)Place:NewDelhiDated:April,272019
Sd/-CA Virender Nagpal
Partner(Membership No.416004)
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ANNUAL REPORT 2018-19
ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT
(Referredtoinparagraph1(f)under‘ReportonOtherLegalandRegulatoryRequirements’sectionofourreporttotheMembersofVikasMulticorpLimitedofevendate)
Report on the Internal Financial Controls Over Financial Reporting under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofVIKAS MULTICORP LIMITED(“theCompany”)asofMarch31,2019inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.
Management’s Responsibility for Internal Financial Controls
TheBoardofDirectorsoftheCompanyisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsof internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissuedbythe InstituteofCharteredAccountantsof India.Theseresponsibilities includethedesign, implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetorespectivecompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.
Auditor’sResponsibility
OurresponsibilityistoexpressanopinionontheinternalfinancialcontrolsoverfinancialreportingoftheCompanybasedonour audit.We conductedour audit in accordancewith theGuidanceNote onAudit of Internal FinancialControlsOverFinancialReporting(the“GuidanceNote”)issuedbytheInstituteofCharteredAccountantsofIndiaandtheStandardsonAuditingprescribedunderSection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditof internalfinancialcontrols.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.
Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.
Webelievethat theauditevidencewehaveobtained, is sufficientandappropriate toprovideabasis forourauditopinionontheinternalfinancialcontrolssystemoverfinancialreportingoftheCompany.
Meaning of Internal Financial Controls Over Financial Reporting
Acompany’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregarding the reliability offinancial reportingand thepreparationoffinancial statements for external purposes inaccordance with generally accepted accounting principles. A company’s internal financial control over financialreporting includes thosepoliciesandproceduresthat (1)pertain tothemaintenanceof recordsthat, in reasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.
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ANNUAL REPORT 2018-19
Limitations of Internal Financial Controls Over Financial Reporting
Becauseof the inherent limitationsof internalfinancialcontrolsoverfinancial reporting, includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiods are subject to the risk that the internal financial control over financial reportingmay become inadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
Opinion
Inouropinion,tothebestofourinformationandaccordingtotheexplanationsgiventous,theCompanyhas,inallmaterial respects,anadequate internalfinancialcontrolssystemoverfinancial reportingandsuch internalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2019,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.
ForGOYAL NAGPAL & CO.Chartered Accountants
(FRN.018289C)Place:NewDelhiDated:April,272019
Sd/-CA Virender Nagpal
Partner(Membership No.416004)
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ANNUAL REPORT 2018-19
ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of Vikas Multicorp Limited of even date)
i. InrespectoftheCompany’sfixedassets:
(a) The Company hasmaintained proper records showing full particulars,including quantitative details andsituationoffixedassets.
(b) TheCompanyhasaprogramofverificationtocoveralltheitemsoffixedassetsinaphasedmannerwhich,inouropinion,isreasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.Pursuanttotheprogram,certainfixedassetswerephysicallyverifiedbythemanagementduringtheyear.Accordingtotheinformationandexplanationsgiventous,nomaterialdiscrepancieswerenoticedonsuchverification.
(c) Accordingto the informationandexplanationsgiventous, therecordsexaminedbyusandbasedontheexaminationoftheconveyancedeeds/registeredsaledeedprovidedtous,wereportthat,thetitledeeds,comprisingalltheimmovablepropertiesoflandandbuildingswhicharefreehold,areheldinthenameoftheCompanyasatthebalancesheetdate.Inrespectofimmovablepropertiesoflandandbuildingthathavebeentakenonleaseanddisclosedasfixedassetsinthestandalonefinancialstatements,theleaseagreementsareinthenameoftheCompany.
ii. InrespectoftheCompany’sInventories:
(a) ThemanagementoftheCompanyhasconductedthephysicalverificationofinventoryatreasonableintervalsduringtheyear.
(b) TheprocedureofphysicalverificationofinventoryfollowedbythemanagementisreasonableandadequateinrelationtothesizeoftheCompanyandnatureofitsbusiness.
(c) TheCompanyhasmaintainedproper recordsof inventoryandnomaterialdiscrepancieswerenoticedonphysicalverification.
iii. TheCompanyhasnotgrantedanyloanstocompanies,firmsorotherpartiescoveredintheregistermaintainedundersection189oftheCompaniesAct,2013(‘theAct’).
iv. Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhascompliedwiththeprovisionsofSections185and186oftheActinrespectofgrantofloans,makinginvestmentsandprovidingguaranteesandsecurities,asapplicable.
v. TheCompanyhasnotaccepteddepositsduringtheyearanddoesnothaveanyunclaimeddepositsasatMarch31,2019andtherefore,theprovisionsoftheclause3(v)oftheOrderarenotapplicabletotheCompany.
vi. ThemaintenanceofcostrecordshasnotbeenspecifiedbytheCentralGovernmentundersection148(1)oftheCompaniesAct,2013forthebusinessactivitiescarriedoutbytheCompany.Thusreportingunderclause3(vi)oftheorderisnotapplicabletotheCompany.
vii. Accordingtotheinformationandexplanationsgiventous,inrespectofstatutorydues:
(a) AccordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecordsoftheCompany,thecompanyisnotregularindepositingundisputedstatutoryduesincludingprovidentfund,employees’stateinsurance,income-tax,sales-tax,servicetax,dutyofcustoms,dutyofexcise,valueaddedtax,cess,GSTandothermaterialstatutorydueswiththeappropriateauthorities.
(b) Accordingtotherecordsofthecompany,theduesoutstandingofemployees’stateinsurance,income-tax,sales-tax,dutyofcustom,dutyofexcise,goodsandservicetax,cessandotherstatutorydues,onaccountofanydisputeareasfollows
S. No. Period of Demand Amount Involved Particulars of demand Appeal pending before1 A.Y.2016-17 Rs.6,04,919/- IncomeTaxCase. CIT(A)Delhi
viii. Inouropinionandaccordingtotheinformationandtheexplanationsgiventousthecompanyhasnotdefaultedinrepaymentofloansorborrowingtoafinancialinstitution,bank,Governmentorduestodebentureholders.
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ANNUAL REPORT 2018-19
ix. TheCompanyhasnotraisedmoneysbywayofinitialpublicofferorfurtherpublicoffer(includingdebtinstruments)ortermloansandhencereportingunderclause3(ix)oftheOrderisnotapplicabletotheCompany.
x. Tothebestofourknowledgeandaccordingtotheinformationandexplanationsgiventous,nofraudbytheCompanyornomaterialfraudontheCompanybyitsofficersoremployeeshasbeennoticedorreportedduringtheyear.
xi. Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhaspaid/providedmanagerialremunerationinaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofsection197readwithScheduleVtotheAct.
xii. TheCompanyisnotaNidhiCompanyandhencereportingunderclause3(xii)oftheOrderisnotapplicabletotheCompany.
xiii. Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyisincompliancewithSection177and188oftheCompaniesAct,2013whereapplicable,foralltransactionswiththerelatedpartiesandthedetailsofrelatedpartytransactionshavebeendisclosedinthestandalonefinancialstatementsasrequiredbytheapplicableaccountingstandards.
xiv. Duringtheyear,theCompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlypaidconvertibledebenturesandhencereportingunderclause3(xiv)oftheOrderisnotapplicabletotheCompany.
xv. Inouropinionandaccordingtotheinformationandexplanationsgiventous,duringtheyeartheCompanyhasnot entered intoanynon-cash transactionswith itsDirectorsorpersons connected to its directors andhenceprovisionsofsection192oftheCompaniesAct,2013arenotapplicabletotheCompany.
xvi. TheCompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,1934.
ForGOYAL NAGPAL & CO.Chartered Accountants
(FRN.018289C)Place:NewDelhiDated:April,272019
Sd/-CA Virender Nagpal
Partner(Membership No.416004)
VIKAS MULTICORP LIMITED
| 47
ANNUAL REPORT 2018-19
(Amounts in Rs.) Notes March 31, 2019 March 31, 2018 April 01, 2017
I. ASSETS1 Non - Current Assets
Property, plant and equipments 3(a) 3,54,61,938 3,16,78,003 44,50,609 Investment Property 3(b) 4,22,21,532 4,44,43,717 4,67,19,303 Other Intangible Assets 3(c) - - 7,12,747 Financial assets
(i) Investments 4 47,75,93,996 1,20,82,26,209 85,83,14,019
Other Non-Current Assets 5 1,89,34,301 90,69,726 12,40,434 Deferred Tax Assets (Net) 16 55,94,785 4,61,023 7,20,964
57,98,06,552 1,29,38,78,678 91,21,58,076 2 Current Assets
Inventories 6 28,23,46,387 14,83,27,073 3,02,90,180 Financial Assets
(i) Trade receivables 7 1,43,85,93,704 1,12,68,91,264 27,39,02,619 (ii) Cash and cash equivalents 8 1,54,45,470 12,38,948 14,67,179 (iii) Bank balances other than (ii) above 8 4,56,02,390 84,47,642 1,29,65,036
Other Current Assets 5 8,53,85,755 5,91,57,233 4,73,78,692 1,86,73,73,705 1,34,40,62,159 36,60,03,706
Total Assets 2,44,71,80,258 2,63,79,40,838 1,27,81,61,782
II. EQUITY AND LIABILITIES1 Equity
Equity Share Capital 9 66,34,95,495 66,34,95,495 30,34,01,400 Other Equity 10 23,74,78,521 96,00,76,274 65,97,39,230
90,09,74,016 1,62,35,71,769 96,31,40,630 2 Liabilities
Non - Current LiabilitiesFinancial Liabilities
(i) Borrowings 11 8,36,43,968 14,35,861 11,86,298 (ii) Others 12 - - -
8,36,43,968 14,35,861 11,86,298 Current Liabilities
Financial Liabilities(i) Borrowings 11 30,87,48,961 19,88,91,978 17,32,87,995 (ii) Trade payables 13 90,32,67,431 63,60,07,460 11,59,83,540 (iii) Others 12 2,50,326 - -
Other Current Liabilities 14 24,09,25,095 17,14,35,230 2,32,13,319 Current Tax Liabilities (Net) 15 93,70,461 65,98,540 13,50,000
1,46,25,62,274 1,01,29,33,208 31,38,34,854 Total Equity and Liabilities 2,44,71,80,258 2,63,79,40,838 1,27,81,61,782
Significant accounting policies 1-2The accompanying notes 1 to 41 form an integral part of the standalone financial statements.
For and on behalf of the Board of Vikas Multicorp Limited
Sd/-Vikas Garg
Sd/-Hari Bhagwan Sharma (Whole-Time Director)
DIN: 02542653(Director)
DIN: 00255413
As per our report of even date
Sd/-Deepanshu Arora
(Company Secretary)
Sd/-Chandan Kumar
(Chief Financial Officer)
Particulars
Balance Sheet as at March 31, 2019
For Goyal Nagpal & Co. Chartered Accountants Firm Regn. No.018289C
Sd/-CA Virender Nagpal PartnerMembership No. 416004
Place: New DelhiDated: 27 April, 2019
VIKAS MULTICORP LIMITED
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ANNUAL REPORT 2018-19
(Amounts in Rs.`) Notes March 31, 2019 March 31, 2018
I Revenue from operations 17 2,15,82,35,796 1,95,35,15,916 II Other income 18 4,05,61,039 5,54,19,783 III Total revenue (I + II) 2,19,87,96,835 2,00,89,35,700
IV Expenses:Purchase of Stock in trade 19 2,16,87,76,519 1,89,57,30,422 Change in inventories 20 (13,40,19,314) (4,29,99,490) Employees benefit expenses 21 1,06,65,162 1,69,27,860 Finance cost 22 6,19,27,054 6,71,40,669 Depreciation and amortisation expenses 23 72,21,139 80,49,155 Other expenses 24 7,08,66,552 4,23,99,873
Total expenses (IV) 2,18,54,37,113 1,98,72,48,489 V Profit before Ecemptional Items and Tax (III - IV) 1,33,59,722 2,16,87,211
VI Exceptional items 25 1,46,99,640 -
VII Profit before Tax (V+VI) 2,80,59,362 2,16,87,211
VIII Tax expense:Current tax 26 1,12,63,495 65,98,540 Deferred Tax 17 (51,33,762) 2,59,942 Taxes of Previous Year 26,65,504 -
Total tax expense (VIII) 87,95,237 68,58,482 IX Profit for the year (VII - VIII) 1,92,64,125 1,48,28,729
X Other comprehensive Income (OCI)
(i) Items that will not be classified to Profit & Loss (74,18,61,878) 34,99,12,190 (ii)
Tax relating to items that will not be reclassified to profit or loss- -
(i) Items that will be classified to Profit & Loss - - (ii)
Tax relating to items that will be reclassified to profit or loss - -
XI Total Other comprehensive income for the year (74,18,61,878) 34,99,12,190 XII Total comprehensive income / (loss) for the year (72,25,97,753) 36,47,40,919
XIII Earnings per share (of Rs. 1 each):Basic 27 0.029 0.022 Diluted 27 0.029 0.025
Significant accounting policies 1-2The accompanying notes 1 to 41 form an integral part of the standalone financial statements.
Particulars
Statement of profit and loss for the year ended March 31, 2019 (Amounts in Rs.) Notes March 31, 2019 March 31, 2018 April 01, 2017
I. ASSETS1 Non - Current Assets
Property, plant and equipments 3(a) 3,54,61,938 3,16,78,003 44,50,609 Investment Property 3(b) 4,22,21,532 4,44,43,717 4,67,19,303 Other Intangible Assets 3(c) - - 7,12,747 Financial assets
(i) Investments 4 47,75,93,996 1,20,82,26,209 85,83,14,019
Other Non-Current Assets 5 1,89,34,301 90,69,726 12,40,434 Deferred Tax Assets (Net) 16 55,94,785 4,61,023 7,20,964
57,98,06,552 1,29,38,78,678 91,21,58,076 2 Current Assets
Inventories 6 28,23,46,387 14,83,27,073 3,02,90,180 Financial Assets
(i) Trade receivables 7 1,43,85,93,704 1,12,68,91,264 27,39,02,619 (ii) Cash and cash equivalents 8 1,54,45,470 12,38,948 14,67,179 (iii) Bank balances other than (ii) above 8 4,56,02,390 84,47,642 1,29,65,036
Other Current Assets 5 8,53,85,755 5,91,57,233 4,73,78,692 1,86,73,73,705 1,34,40,62,159 36,60,03,706
Total Assets 2,44,71,80,258 2,63,79,40,838 1,27,81,61,782
II. EQUITY AND LIABILITIES1 Equity
Equity Share Capital 9 66,34,95,495 66,34,95,495 30,34,01,400 Other Equity 10 23,74,78,521 96,00,76,274 65,97,39,230
90,09,74,016 1,62,35,71,769 96,31,40,630 2 Liabilities
Non - Current LiabilitiesFinancial Liabilities
(i) Borrowings 11 8,36,43,968 14,35,861 11,86,298 (ii) Others 12 - - -
8,36,43,968 14,35,861 11,86,298 Current Liabilities
Financial Liabilities(i) Borrowings 11 30,87,48,961 19,88,91,978 17,32,87,995 (ii) Trade payables 13 90,32,67,431 63,60,07,460 11,59,83,540 (iii) Others 12 2,50,326 - -
Other Current Liabilities 14 24,09,25,095 17,14,35,230 2,32,13,319 Current Tax Liabilities (Net) 15 93,70,461 65,98,540 13,50,000
1,46,25,62,274 1,01,29,33,208 31,38,34,854 Total Equity and Liabilities 2,44,71,80,258 2,63,79,40,838 1,27,81,61,782
Significant accounting policies 1-2The accompanying notes 1 to 41 form an integral part of the standalone financial statements.
For and on behalf of the Board of Vikas Multicorp Limited
Sd/-Vikas Garg
Sd/-Hari Bhagwan Sharma (Whole-Time Director)
DIN: 02542653(Director)
DIN: 00255413
As per our report of even date
Sd/-Deepanshu Arora
(Company Secretary)
Sd/-Chandan Kumar
(Chief Financial Officer)
Particulars
Balance Sheet as at March 31, 2019
For Goyal Nagpal & Co. Chartered Accountants Firm Regn. No.018289C
Sd/-CA Virender Nagpal PartnerMembership No. 416004
Place: New DelhiDated: 27 April, 2019
VIKAS MULTICORP LIMITED
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ANNUAL REPORT 2018-19
As at March 31, 2019 As at March 31, 2018 Cash �ows from operating activitiesTotal Profit before Tax for the year 2,80,59,362 2,16,87,211 Adjustments for
Deprecia�on and amor�za�on 72,21,139 80,49,155 Interest income (37,46,261) (69,25,635) Dividend Income (20,55,307) (20,55,307) Finance Costs 6,19,27,054 6,71,40,669 Profit on sale of Car (2,20,778) (10,715) Profit on sale of Investments (1,41,58,141) (5,09,375)
Operating pro�t before working capital changes and other adjustments 7,70,27,068 8,73,76,003 Movements in working capital:
(Increase)/ decrease in Inventories (13,45,19,314) (11,80,36,893) (Increase)/ decrease in Trade receivables (31,17,02,440) (85,29,88,645) (Increase)/ decrease in Other Current Assets (2,57,28,522) (1,17,78,540) (Increase)/ decrease in Other Non Financial Assets (98,64,575) (78,29,292) (Increase)/ decrease in Bank Balance other than Cash and Cash Equivalents (3,71,54,749) 45,17,394 (Increase)/ decrease in Other Non Financial Liabili�es 2,50,326 - Increase/ (decrease) in Trade Payable 26,72,59,971 52,00,23,920 Increase/ (decrease) in Other current liabili�es 6,94,89,865 14,82,21,911
cash �ow from operating activities Post working capital changes (10,49,42,370) (23,04,94,143) Income taxes paid (1,11,57,078) (13,50,000)
NET CASH USED IN OPERATING ACTIVITIES (A) (11,60,99,448) (23,18,44,143) Cash �ows from investing activities
Sale of Cars 4,50,000 2,85,000 Purhcase of Investments (4,25,00,000) (1,22,25,000) Sale of Investments 4,54,28,478 1,27,34,375 Purchase of Fixed Assets (90,12,113) (3,25,62,503) Dividend Income 20,55,307 20,55,307 Interest income 37,46,261 69,25,635
NET CASH GENERATED/(USED) IN INVESTING ACTIVITIES (B) 1,67,934 (2,27,87,186) Cash �ows from �nancing activities
Increase in Borrowings 19,20,65,090 2,58,53,546 Increase in Share capital due to demerger - 23,87,33,535 Increase in Share capital due to issued bonus share - 12,13,60,560 Decrease in reserve due to issued bonus share - (12,13,60,561) Increase in Capital Reserve due to demerger - 5,69,56,687 Finance cost (6,19,27,054) (6,71,40,669)
NET CASH GENERATED BY FINANCING ACTIVITIES (C) 13,01,38,036 25,44,03,098
Net decrease in cash and cash equivalents (A+B+C) 1,42,06,522 (2,28,231) Cash and cash equivalents at the beginning of the year (refer note 8) 12,38,948 14,67,179 Cash and cash equivalents at the end of the year (refer note 8) 1,54,45,470 12,38,948 Note: The above Standalone Statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in Ind AS 7,‘Statement of Cash Flows’.Significant accoun�ng policies 1-2The accompanying notes 1 to 41 form an integral part of the standalone financial statements.As per our report of even date
Statement of Cash Flow for the year ended March 31, 2019Particulars
For and on behalf of the Board of Vikas Multicorp Limited
Sd/-Vikas Garg
Sd/-Hari Bhagwan Sharma (Whole-Time Director)
DIN: 02542653(Director)
DIN: 00255413
Sd/-Deepanshu Arora
(Company Secretary)
Sd/-Chandan Kumar
(Chief Financial Officer)
For Goyal Nagpal & Co. Chartered Accountants Firm Regn. No.018289C
Sd/-CA Virender Nagpal PartnerMembership No. 416004
Place: New DelhiDated: 27 April, 2019
VIKAS MULTICORP LIMITED
| 50
ANNUAL REPORT 2018-19
A. E
quity
sha
re c
apita
lEq
uity
sha
res
of R
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h is
sued
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8
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,222
96
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Add:
Pro
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or th
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ar-
- -
1,92
,64,
125
-
1,92
,64,
125
L
ess
:Fai
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f Equ
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stru
men
ts th
roug
h O
CI
(net
of I
ncom
e Ta
x)
- -
- -
(74,
18,6
1,87
8)
(74,
18,6
1,87
8)
Bala
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as a
t Mar
ch 3
1, 2
019
- 5,
98,0
2,25
0
10,6
3,12
,074
3,40
,92,
852
3,
72,7
1,34
4
23,7
4,78
,520
Sign
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ccou
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com
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finan
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.As
per
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31,
201
9
Tot
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Part
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Rese
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and
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For a
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Vika
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ultic
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Date
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7 Ap
ril, 2
019
VIKAS MULTICORP LIMITED
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ANNUAL REPORT 2018-19
Notes to the Financial Statements For the Year Ended March 31, 2019
1. COMPANY INFORMATION
VikasMulticorpLimited(‘thecompany’)isadomesticpubliclimitedwithregisteredofficesituatedatC-34/1,VikasHouse,EastPunjabiBagh,NewDelhi-110034and is in theprocessof listing onStockExchanges.ThecompanyistheresultantcompanyformedbytheDe-mergerofTradingDivisionofVikas Ecotech LimitedandsubsequentamalgamationwiththecompanywithasperschemeapprovedbyNCLT,Delhidated08-11-2018.
ThecompanyisdealinginHigh-volumeTradingandRecycledCompounds.ThecompanyisalsotheDelCredreAgent(DCA)byONGCPetroAdditionsLimited(OPAL).CompanyisalsodealinginRealEstateSector.
2.)2.1 SIGNIFICANT ACCOUNTING POLICIES
2.1.1 Basis for Preparation of accounts
Forallperiodsuptoandincludingtheyearended31march2019,thecompanyprepareditsfinancialstatementsinaccordancewithaccountingstandardsnotifiedundersection133ofthecompaniesAct2013,readtogetherwith paragraph 7of the companies (Accounts)rules, 2014 (IndianGAAP). Upto financial year ended on 31stMarch2018,thecompanyhaspreparedtheaccountsaccordingtothePreviousGAAP.Thesefinancialstatementfortheyearended31stmarch2019arethefirstthecompanyhaspreparedinaccordancewithIndianaccountingstandards(“IndAS”).Thefinancialstatementsfortheyearended31stMarch2019arethefirsttohavebeenpreparedinaccordancewithINDAS.Openingbalancesheetason1stApril2017and31stMarch2018havebeenpresentedascomparatives.Thetransitionwascarriedoutretrospectivelyasonthetransitiondatewhichis1stApril2017,andforanyvariationintheamountsrepresentedinthecomparativebalancesheetvis-à-visearlierpresentation,reconciliationisgivenaspartofnotes.
Thesefinancialstatementsofthecompanyfortheyearended31,march2019havebeenpreparedinaccordancewithaccountingprinciplesgenerallyacceptedinIndia,includingtheIndASspecifiedundersection133oftheactreadwiththecompanies(Indianaccountingstandards)rules,2015,asamended.Assetsandliabilitieshavebeenclassifiedascurrentornon-currentaspertheCompany’snormaloperatingcycleandothercriteriasetoutinrevisedSchedule–IIItotheCompaniesAct,2013.
2.1.2 Use of Estimates
ThepreparationofStandaloneFinancialStatementsinconformitywithIndASrequiresthemanagementtomakeestimatesandassumptions related tofinancial statements, thataffect reportedamountofassets, liabilities,revenue,expensesandcontingentliabilitiespertainingtotheyear.Actualresultmaydifferfromsuchestimates.Anyrevisioninaccountingestimatesisrecognizedprospectivelyintheperiodofchangeandmaterialrevision,includingitsimpactonfinancialstatements,isreportedinthenotestoaccountsintheyearofincorporationofrevision.
2.1.3 Scheme of arrangement (Demerger)
Theschemeofarrangementundersection230to232CompaniesAct,2013(theScheme)betweentheCompanyandVikasEcotechLimited(theDemergedCompany)andtheirrespectiveshareholdersandthecreditorsofthetwocompanies fordemergerofTradingunitBusinessundertakingasagoingconcern into theCompanyontheAppointedDateattheopeningofbusinesshourson01thApril2017,hasbeensanctionedbytheHon’bleNationalCompanyLawTribunalatNewDelhivideitsOrderdated31stOctober,2018.CertifiedcopiesoftheorderoftheHon’bleNationalCompanyLawTribunal,NewDelhihavebeenfiledwiththeRegistrarofCompaniesatDelhiandtheschemehasbecomeeffectivefrom01stApril2017.
The Scheme has accordingly been given effect to in the accounts effective from the Appointed Date beingopeningofbusinesshourson01stApril2017.
InaccordancewiththeScheme,shareholdersoftheDemergedCompanytobeallotted1equitysharesofRs.1(IndianRupeesOneOnly)eachbytheCompanyintheratioof1(One)equityshareinCompanyforevery1(One)equitysharesofRs.1/-(IndianRupeesOneOnly)eachheldintheDemergedCompany.
Pursuant to theScheme, the surplusof theassetsover liabilities, afteradjustingShareCapitalAccountandcancellationofexistingShareCapitalhasbeencreditedtoCapitalReserveAccount.
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ANNUAL REPORT 2018-19
Demerged Company is deemed to have been carrying on all business activities relating to the demergedundertakingwitheffectfromopeningofbusinesshourson01stApril2017andonaccountofandintrustoftheCompany.Allprofitsorlosses,incomeandexpensesaccruingorarisingorincurredafteropeningofbusinesshourson01stApril2017relatingtothesaidundertakingshallgetvestedtotheCompany
AccordinglyFinancialstatementsofM/sVikasMulticorpLimitedpursuanttotheDe-mergerOrderdated08thNovember2018effectivefrom01stApril2017hasbeenredrawnandallocableIncome&Expenses/Assets&Liabilitieshavebeenallocatedtorespectivecompanies(VikasEcotechLimitedandVikasMulticorpLimited).AlltheseIncome&Expenses/Assets&Liabilitiesallocatedtoresultingcompany(VikasMulticorpLimited)isintheratioofTurnoverofrespectivecompaniesfortheFinancialyear2017-18andthesamehavebeenincorporatedinthebooksofresultingcompany.FollowingthesystemofallocationIncome&Expenses/Assets&LiabilitiesfortheFinancialYear2018-19havealsobeenallocatedtorespectivecompanies.
2.1.4 First time adoption of IND AS
a. BeingfirsttimeadoptionofINDAS,thecompanyhasavailedthefollowingexemptionsasgrantedunderAppendixC&DofINDAS101:-
i). ThecompanyelectsnottoapplyINDAS-103retrospectively,pertainingtobusinesscombinationsoccurredbeforetransitiondate.
ii). ThecompanyisalsonotapplyingINDAS21towardseffectsofchangesinforeigncurrencyratesretrospectivelytogoodwillarisinginbusinesscombinationsthatoccurredbeforetransitiondate.
iii). Carrying values for all of its Property, Plant and Equipment, Intangible assets and InvestmentpropertyasatthedateoftransitiontoINDAS,measuredasperpreviousGAAPhavebeentreatedastheirdeemedcostsasatthedateoftransition.
iv). These estimates used by company to present these amounts in accordancewith Ind AS reflectconditionsat1April2017(i.e.thedateoftransitiontoIndAS)andasof31march2018.
v). Carryingvalueforallofitsinvestmentinsubsidiaries,JointVenturesandAssociatesasatthedateoftransitiontoINDAS,measuredasperpreviousGAAParetreatedastheirdeemedcostsasatthedateoftransition.
b. RetrospectiveimpactsoftransitionfrompreviousGAAPtoINDASonassetsandliabilities,havebeenadjustedagainst“OtherEquity”on1stApril2017.
2.2 Revenue Recognition
• Saleshavebeenrecognizedwiththetransferofsignificantriskandrewardsofownershipofthegoods,withthecompanylosingeffectivecontrolortherighttomanagerialinvolvementthereonandtherevenue(representing futureeconomicbenefitassociatedwith the transaction) includingcost incurredor tobeincurred in respect of the transaction aremeasurable reliably and the recoveryof the consideration isprobable.
• Sales aremeasuredat the fair valueof consideration receivedor receivable. Sales recognized is netofGoodsandServiceTax,NotestotheFinancialStatementsfortheyearendedMarch31,2019.
• InterestIncomeisrecognisedonatimeproportionbasisusingtheeffectiveinterestrate(EIR)
• Dividendincomeisrecognizedatthetimewhentherighttoreceiveisestablishedbythereportingdate.
• Other incomes have been recognized on accrual basis in financial statements except for cash flowinformation.
2.3 Property, Plants and Equipments
Thesetangibleassetsareheldforuseinproduction,supplyofgoodsorservicesorforadministrativepurposes.Thesearerecognizedandcarriedundercostmodeli.e.costlessaccumulateddepreciationandimpairmentloss,ifanywhichisakintorecognitioncriteriaundererstwhileGAAP.
• Costincludesfreight,duties,taxesandotherexpensesdirectlyincidentaltoacquisition,bringingtheassettothelocationandinstallationincludingsiterestorationuptothetimewhentheassetisreadyforintendeduse.SuchCostsalsoincludeBorrowingCostiftherecognitioncriteriaaremet.
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ANNUAL REPORT 2018-19
• DepreciationhasbeenprovidedonWrittenDownvaluemethodintermsofexpectedlifespanofassetsasreferredtoinScheduleIIoftheCompaniesAct,2013.Inthefollowingcategoryofpropertyplantandequipment, the depreciation has been provided on the technical evaluation of the useful lifewhich isdifferentfromtheonespecifiedinScheduleIItotheCompaniesAct,2013.
Buildings-3to60years
PlantandMachinery-3to15years
FurnitureandFixtures-5to10years
OfficeEquipment-5to10years
Vehicles - 5 to 8 years
Theresidualvalueandusefullifeisreviewedannuallyandanydeviationisaccountedforasachangeinestimate.
• Duringsalesoffixedassetsanyprofitearned/losssustainedtowardsexcess/shortfallofsalevaluevis-a-viscarryingcostofassetsisaccountedforinstatementofprofit&loss.
2.4 Investment Property:
Propertiesheldtoearnrentalsor/andforcapitalappreciationorbothbutnotforsaleintheordinarycourseofbusiness,useintheproductionorsupplyofgoodsorservicesorforadministrativepurposes,arecategorizedas investmentproperties.Thesearemeasured initiallyatcostofacquisition, including transactioncostsandother direct costs attributable to bringing asset to its working condition for intended use. Subsequent toinitial recognition, investment properties are stated at cost less accumulateddepreciation and accumulatedimpairmentloss,ifany.Thecostshallalsoincludeborrowingcostiftherecognitioncriteriaaremet.SaidassetsaredepreciatedonstraightlinebasisbasedonexpectedlifespanofassetswhichisinaccordancewithScheduleIIoftheAct.
AnygainorlossondisposalofinvestmentpropertiesisrecognizedinStandaloneStatementofProfitandLoss.
Transferstoorfromtheinvestmentpropertyismadeonlywhenthereisachangeinuseandthesameismadeatthecarryingamountofinvestmentproperty
DuringtheyearcompanyhaschangeclassificationofbuildingfromProperty,PlantandEquipmentstoInvestmentinProperty.
2.5 Intangible Assets
Intangibleassetsarerecognizedonlywhenthefurthereconomicbenefitsarisingoutoftheassetsflowtotheenterpriseandareamortizedovertheirusefulliferangingfrom3to5years.Intangibleassetacquiredseparatelyaremeasuredoninitialrecognitionatcost.Followinginitialrecognition,intangibleassetsarecarriedatcostlessaccumulatedamortizationandaccumulated impairment losses, ifany. Internallygenerated intangibleassets,excludingcapitalizeddevelopmentcost,arenotcapitalizedandarechargedtostatementofprofitandlossfortheyearduringwhichsuchexpenditureisincurred.
2.6 Lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of thearrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of thearrangementisdependentontheuseofaspecificassetorassetsandthearrangementconveysarighttousetheassetorassets,evenifthatrightisnotexplicitlyspecifiedinanarrangement.
Lease are classified as finance leasewhenever the terms of the lease transfer substantially all the risk andrewardsofownershiptotheleases.Allotherleaseclassifiedasoperatingleases.
2.7 Financial Instruments
I. Financial Assets
Initial Recognition and Measurement
Allfinancialassetsarerecognizedinitiallyatfairvalueplus,inthecaseoffinancialassetsnotrecordedat
VIKAS MULTICORP LIMITED
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ANNUAL REPORT 2018-19
fairvaluethroughprofitorloss,transactioncoststhatareattributabletotheacquisitionofthefinancialasset.
Financialassetsareclassified,atinitialrecognition,asfinancialassetsmeasuredatfairvalueorasfinancialassetsmeasuredatamortizedcost
Subsequent Measurement
Forpurposeofsubsequentmeasurementfinancialassetsareclassifiedintwobroadcategories:-
•FinancialAssetsatfairvalue
•Financialassetsatamortizedcost
Whereassetsaremeasuredatfairvalue,gainsandlossesareeitherrecognizedentirelyinthestatementofprofitandloss,orrecognizedinothercomprehensiveincome.
AllequityinvestmentsinscopeofInd-AS109aremeasuredatfairvalue.EquityinstrumentswhichareheldfortradingareclassifiedasatFVTPL.Forallotherequityinstruments,theCompanydecidestoclassifythesameeitherasatFVTOCIorFVTPL.
IftheCompanydecidestoclassifyanequityinstrumentasatFVTOCI,thenallfairvaluechangesontheinstrument,excludingdividends,arerecognizedintheOCI.ThereisnorecyclingoftheamountsfromOCItoP&L,evenonsaleofinvestment.However,theCompanymaytransferthecumulativegainorlosswithinequity.
Investment in associates, joint venture and subsidiaries
Thecompanyhasaccountedforitsinvestmentinsubsidiaries,associatesandjointventureatcost.
Impairment of financial assets
Thecompanyassessesimpairmentbasedonexpectedcreditlosses(ECL)modelatanamountequalto:-
•12monthsexpectedcreditlosses,or
•Lifetimeexpectedcreditlossesdependinguponwhethertherehasbeenasignificantincreaseincreditrisksinceinitialrecognition.
However,fortradereceivables,thecompanydoesnottrackthechangesincreditrisk.Rather,itrecognizesimpairmentlossallowancebasedonlifetimeECLsateachreportingdate,rightfromitsinitialrecognition.Companiespolicymaydifferineachcaseoftradereceivables.
II. Financial Liabilities
Allfinancial liabilitiesare initially recognizedat fairvalueand, in thecaseof loansandborrowingsandpayables,netofdirectlyattributabletransactioncosts.
Financialliabilitiesareclassifiedasmeasuredatamortizedcostorfairvaluethroughprofitandloss(FVTPL).AfinancialliabilityisclassifiedasFVTPLifitisclassifiedasheldfortrading.FinancialLiabilitiesatFVTPLaremeasuredatfairvalueandnetgainorlosses,includinganyinterestexpense,arerecognisedinstatementofprofitandloss.Otherfinancialliabilitiesaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestmethod.Interestexpenseandforeignexchangegainsandlossesarerecognisedinstatementofprofitandloss
2.8 Fair value measurement
Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionsbetweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementisbasedonpresumptionthatthetransactiontoselltheassetortransfertheliabilitytakesplaceeither:
• Intheprincipalmarketfortheassetorliability,or
• Inabsenceofaprincipalmarket,inmostadvantageousmarketfortheassetorliability
Theprincipalorthemostadvantageousmarketmustbeaccessiblebythecompany.
Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionthatmarketparticipantswouldusewhenpricingtheassetsor liability,assumingthatmarketparticipantsact intheirbesteconomic interestfairvalue
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ANNUAL REPORT 2018-19
measurementofanon-financialassettakesintoaccountamarketparticipant’sabilitytogenerateeconomicbenefitsbyusingtheassetsinitshighestandinitsbestuseorbysellingittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.
Thecompanyusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue,maximizingtheuseofrelevantobservableinputsandminimizingtheuseofunobservableinputs.
Allassetsandliabilitiesforwhichfairvalueismeasuredordisclosedinthefinancialstatementsarecategorisedwithinthefairvaluehierarchy,describedasfollows,basedonthelowestlevelinputthatissignificanttothefairvaluemeasurementasawhole:
Level1—Quoted(unadjusted)marketpricesinactivemarketsforidenticalassetsorliabilities
Level2—Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisdirectlyorindirectlyobservable
Level3—Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementis unobservable
2.9 Cash and Cash Equivalents
Cashandcashequivalentsinthebalancesheetcomprisecashatbankandonhandandshort-termdepositswithanoriginalmaturityofthreemonthsorless,whicharesubjecttoaninsignificantriskofchangesinvalue.
2.10 Inventories
Inventoriesarevaluedatthe lowerofcost(includingprimecost,non-refundabletaxesanddutiesandotheroverheads incurred in bringing the inventories to their present location and condition) and estimated netrealisablevalue,afterprovidingforobsolescence,whereappropriate.Thecomparisonofcostandnetrealisablevalue ismadeonan item-by-itembasis. Thenet realisablevalueofmaterials inprocess isdeterminedwithreferencetothesellingpricesofrelatedfinishedgoods.Rawmaterials,packingmaterialsandothersuppliesheldforuseinproductionofinventoriesarenotwrittendownbelowcostexceptincaseswherematerialpriceshavedeclined,anditisestimatedthatthecostofthefinishedproductswillexceedtheirnetrealisablevalue.
Thebasisofdeterminationofcostremainsasfollows:
a) Rawmaterials, packingmaterials are valuedat cost includespurchaseprice, inward freight andotherincidentalexpensesnetofrefundableduties,leviesandtaxes,whereapplicable.
b) Finished goods are valued at lower of net realisable value and cost (including prime cost and otheroverheads incurred inbringingthe inventoriestotheirpresent locationandcondition.FinishedGoodsincludesstockofRealestateDivision.)
2.11 Provisions, Contingent Liabilities and Contingent Assets
• Aprovisionisrecognisedwhenanenterprisehasapresentobligation(legalorconstructive)asaresultofpastevent;itisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.Theexpenserelatingtoaprovisionispresentedinthestatementofprofitorloss.
• Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpre-taxratethatreflects,whenappropriate,thetaxspecifictotheliability.Whendiscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognisedasafinancialcost.
• A contingent liability is a possible obligation that arises from past events whose existence will beconfirmedby theoccurrenceornon-occurrenceofoneormoreuncertain futureeventsbeyond thecontrolof thecompanyorapresentobligationthat isnotrecognizedbecause it isnotprobablethatanoutflowof resourceswill be required to settle theobligation. The companydoesnot recognizeacontingentliabilitybutdiscloseitsexistenceinthefinancialstatementsasperNoteNo.28
• Contingentassetsareneither recognizednordisclosedexceptwhen realizationof income isvirtuallycertain,relatedassetisdisclosed.
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ANNUAL REPORT 2018-19
2.12 Borrowing Cost
Borrowing cost that are directly attributable to the acquisition, construction, or production of a qualifyingassetarecapitalizedasapartofthecostofsuchassettillsuchtimetheassetisreadyforitsintendeduseorsaleBorrowingcostconsistofinterestandothercoststhatanentityincursinconnectionwiththeborrowingoffunds.Borrowingcostsalsoincludesexchangedifferencestotheextentregardedasanadjustmenttotheborrowingcosts.Aqualifyingassetisanassetthatnecessarilyrequiresasubstantialperiodoftimetogetreadyforitsintendeduseorsale.Allotherborrowingcostarerecognizedasexpenseintheperiodinwhichtheyareincurred.
2.13 Foreign Currency Translation
Thecompany’sfinancialstatementsarepresentedinINR,whichisalsothecompany’sfunctionalcurrency.
• Transactions in foreign currencies are recognized at rate of overseas currency ruling on the date oftransactions. Gain / Loss arising on account of rise or fall in overseas currencies vis-à-vis functionalcurrencybetweenthedateoftransactionandthatofpaymentischargedtoStatementofProfit&Loss.
• MonetaryAssetsinforeigncurrenciesaretranslatedintofunctionalcurrencyattheexchangeraterulingattheReportingDateandtheresultantgainorloss,isaccountedforintheStatementofProfit&Loss.
• Non-Monetaryitemswhicharecarriedathistoricalcostdenominatedinaforeigncurrencyarereportedusingtheexchangerateatthedateofthetransaction
2.14 Employee Benefits
i.) Short-term employee benefit
Allemployeebenefitsfallingduewhollywithintwelvemonthsofrenderingtheservicesareclassifiedasshort-termemployeebenefits,whichincludebenefitslikesalaries,wages,short-termcompensatedabsences and performance incentives and are recognised as expenses in the period in which theemployeerenderstherelatedservice
ii.) Post-employment benefits
CompanyhasnotaccountedanyPost-Employmentbenefitsandhasnotmadeanyprovision forpostemploymentbenefits.
2.15 Operating Segments
TheChiefOperationalDecisionMakermonitorstheoperatingresultsofitsbusinesssegmentsseparatelyforthepurposeofmakingdecisionsaboutresourceallocationandperformanceassessment.Segmentperformanceisevaluatedbasedonprofitandlossandismeasuredconsistentlywithprofitandlossinthefinancialstatements
TheOperatingsegmentshavebeenidentifiedonthebasisofthenatureofproducts/services.
• Segment revenue includes sales and other income directly identifiable with the segment includingintersegment revenue.
• Expensesthataredirectlyidentifiablewiththesegmentsareconsideredfordeterminingthesegmentresults.ExpenseswhichrelatetotheGroupasawholeandnotallocabletosegmentsareincludedunderunallocableexpenditure.
• IncomewhichrelatestotheGroupasawholeandnotallocabletosegmentsisincludedinunallocableincome.
• Segmentresultincludesmarginsoninter-segmentandsaleswhicharereducedinarrivingattheprofitbeforetaxoftheGroup
• Segment assets and liabilities include those directly identifiable with the respective segments.UnallocableassetsandliabilitiesrepresenttheassetsandliabilitiesthatrelatetotheGroupasawholeandnotallocabletoanysegment.
2.16 Taxation
Tax expense recognized in Standalone Statement of Profit and Loss comprises the sumof deferred tax andcurrenttaxexcepttheonesrecognizedinothercomprehensiveincomeordirectlyinequity.
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Current tax is determined as the tax payable in respect of taxable income for the year and is computed inaccordancewithrelevanttaxregulations.Currentincometaxrelatingtoitemsrecognizedoutsideprofitorlossisrecognizedoutsideprofitorloss(eitherinothercomprehensiveincomeorinequity).
MinimumAlternateTax(‘MAT’)creditentitlementisrecognizedasanassetonlywhenandtotheextentthereisconvincingevidencethatnormalincometaxwillbepaidduringthespecifiedperiod.IntheyearinwhichMATcreditbecomeseligibletoberecognizedasanasset,thesaidassetiscreatedbywayofacredittotheStandaloneStatementofProfitandLossandshownasMATcreditentitlement.ThisisreviewedateachbalancesheetdateandthecarryingamountofMATcreditentitlementiswrittendowntotheextentitisnotreasonablycertainthatnormalincometaxwillbepaidduringthespecifiedperiod.
DeferredtaxisrecognizedontemporarydifferencesbetweenthecarryingamountofassetsandliabilitiesinthefinancialstatementandthecorrespondingtaxbasesusedincomputationoftaxableprofitunderIncomeTaxAct,1961.
Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheyearwhentheassetisrealizedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatthereportingdate.DeferredtaxrelatingtoitemsrecognizedoutsideStandaloneStatementofProfitandLossisrecognizedoutsideStandaloneStatementofProfitandLoss(eitherinothercomprehensiveincomeorinequity).
2.17 Earnings per share
Basicearningspersharearecalculatedbydividingthenetprofitor lossfortheperiodattributabletoequityshareholdersbytheweightedaveragenumberofequitysharesoutstandingduringtheperiod.Forthepurposeofcalculatingdilutedearningspershare,thenetprofitorlossfortheperiodattributabletoequityshareholdersand theweightedaveragenumberof sharesoutstandingduring theperiod is adjusted for theeffectsof alldilutivepotentialequityshares.
Theweightedaveragenumberofequitysharesoutstandingduringtheperiodandforalltheperiodspresentedinadjustedforevents,suchasbonusshares,otherthantheconversionofpotentialequitysharesoutstanding,withoutacorrespondingchangeinresources.
2.18 Companyhasenteredaspartnerinpartnershipbusinesscarriedonundername&styleM/sRaviCropScience.The said partnership firm is engaged in business of providing formulation products to various pesticidescompaniesinretailpacks.Figuresofshareofprofitofthecompanyinprofitsofsaidfirmhasnotbeenincludedinthesefinancialresultsastheaccountsofsaidpartnershiphavenotbeenaudited.Sincecompanyisrequiredtopublishitsauditedresultslatestby29thApril,2019andthereisnolikelihoodthatauditedaccountsofsaidpartnershipfirmbeavailablebythatdatethereforeaccountsofcompanyhavebeenfinalisedwithoutwaitingforresultsofpartnershipfirm.ProfitarisingfromthatfirmshallbeaccountedforinthebooksofthecompanyintheFinancialYear2019-20.
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ANNUAL REPORT 2018-19
Notes to the financial statements for the year ended March 31, 2019Note 3(a) - Property plant and equipment
(Amounts in Rs.`)
Particulars Building Furniture, Fitting and equipements
Plant and Machinery Computers Motor Vehicles Total
Year ended 31st March 2018Gross carrying amountDeemedcostasat1stApril2017 3,746,813 728,375 194,480 42,915 9,613,751 14,326,334
- Additions 12,840,136 36,500 12,758,271 - 6,927,596 32,562,503
-
Disposals - - - - 1,255,000 1,255,000
Closing gross carrying amount 16,586,949 764,875
12,952,751 42,915 15,286,347 45,633,837
Accumulated depreciation 3,034,067 605,051 184,755 39,119 5,299,987 9,162,978 Opening Accumulated derpreciation - Depreciationduringtheyear 756,094 53,783 2,407,363 1,649 2,554,680 5,773,569
-
Disposals - - - - 991,429 991,429 Profitondisposalofassets 10,715 10,715 Closing accumulated depreciation 3,790,161 658,834 2,592,118 40,768 6,863,238 13,955,834
Net carrying amount 31.03.2018 12,796,788 106,041
10,360,633 2,147 8,423,109 31,678,003
Year ended 31st March 2019
Gross carrying amountOpeninggrosscarryingamount 16,586,949 764,875 12,952,751 42,915 15,286,347 45,633,837
Additions - 20,013 8,992,100 - - 9,012,113 -
Disposals - - - - 1,758,461 1,758,461 Closing gross carrying amount 16,586,949 784,888 21,944,851 42,915 13,527,886 52,887,488
Accumulated depreciation 3,790,161 658,834 2,592,118 40,768 6,863,238 13,955,834
Openingaccumulateddepreciation 3,790,161 658,834 2,592,118 40,768 6,863,238 13,955,834
Depreciationchargeduringtheyear 784,301 15,879 2,059,294 858 2,138,622 4,998,954
Disposals - - - - 1,750,016 1,750,016
Profitondisposalofassets - - - - 220,778 220,778 Closing accumulated depreciation 4,574,462 674,713 4,651,413 41,626 7,472,622 17,425,550
Net Carrying amount 31.03.2019 12,012,487 110,175 17,293,438 1,289 6,055,264 35,461,938
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Note 3(b) - Investment Properties
Particulars BuildingYear ended 31st March 2018Gross carrying amountDeemedcostasat1stApril2017 46,719,303
Additions - Closing gross carrying amount 46,719,303
Accumulated depreciation - Depreciationduringtheyear 2,275,586
Assestincludedinadisposalgroupclassifiedasheldforsale -
Closing accumulated depreciation 2,275,586 -
Net carrying amount 31.03.2018 44,443,717 Year ended 31st March 2019
`Gross carrying amount - Openinggrosscarryingamount 44,443,717
Additions - Assetsclassifedasheldforsale 44,443,717
Closing gross carrying amount 44,443,717
Accumulated depreciation and Impairment 2,275,586
Depreciationchargeduringtheyear 2,222,185
Profitondisposalofassets - Closing accumulated depreciation and Impairment 4,497,771
Net Carrying amount 31.03.2019 42,221,532
Note 3(C) - Intangible Assets
Particulars GoodwillYear ended 31st March 2018Gross carrying amountDeemedcostasat1stApril2017 712,747
Additions -
Closing gross carrying amount 712,747
Amortised expensesAmortisedexpensesduringtheyear 712,747
Closing amortised Expenses 712,747
Net carrying amount 31.03.2018 -
Year ended 31st March 2019
Gross carrying amountOpeninggrosscarryingamount -
Additions -
Closing gross carrying amount -
Amortised expenses -
Amortisedexpensesduringtheyear - Closing amortised Expenses -
Net Carrying amount 31.03.2019 -
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Notes to the financial statements for the year ended March 31, 2019
Note 4. Financial assets - InvestmentsNumber of shares
Nominal Value
per unit
As at 31-Mar-
2019
As at 31-Mar-
2018
As at 01-Apr-
2017
As at 31-Mar-2019
As at 31-Mar-2018
As at 01-Apr-2017
Quoted Investments (Fully Paid)
Vikas Ecotech Ltd- (Listed Shares)
1 38,166,140 41,166,140 41,166,140 435,093,996 1,208,226,209 858,314,019
Total aggregate quoted investments [A]
435,093,996 1,208,226,209 858,314,019
Investments in Partnership Firm * (At cost)
42,500,000
Total aggregate Investments in partnership Firm[B]
42,500,000 - -
Total Non-current Investments [A+B]
477,593,996 1,208,226,209
858,314,019
Quoted Investment Carried at Cost 397,822,652 429,092,987 429,092,987 Quoted Investment Carried at amortized Cost 397,822,652 429,092,987 429,092,987 Quoted Investment Carried at Fair Value through Profit & Loss
- - -
Quoted Investment Carried at Fair Value through Comprehensive Income 435,093,996 1,208,226,209 858,314,019
Note 5 - Other Non Current and Current Assets
(Unsecured,consideredgoodunlessotherwisestated)
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017
Non Cur-rent Current Non Cur-
rent Current Non Cur-rent Current
AdvancetoSuppliers - 66,311,477 - 39,432,518 - 35,087,297 Balance with Government AuthoritiesConsideredGood 102,525 11,268,740 859,419 12,833,536 859,419 3,561,739 ConsideredDoubtful - 3,272,496 - - - -
SecurityDeposits 18,831,776 - 8,210,307 165,300 220,307 160,000 LoantoEmployees - 144,500 210,000 396,000 PrepaidExpenses - 394,154 361,765 159,323 MergerExpenses - - - - 160,708 140,708 InterestReceivable - 772,274 - Others - 3,222,114 - 6,154,114 7,873,626
Total Current and Non Current assets 18,934,301 85,385,755 9,069,726 59,157,233 1,240,434 47,378,692
Note 6- Inventories(atthelowerofcostornetrealisablevalue)
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017
RawMaterialsofTradedGoods - 70,717,106 - FinishedGoodsofTradedGoods* 196,792,864 58,050,505 10,730,718 FinishedgoodsofRealEstateDivision 85,553,523 19,559,462 19,559,462
Total inventories 282,346,387 148,327,073 30,290,180 *IncludesStockinTransitofRs.1,17,06,973/-CY
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Note 7 - Trade receivables(Unsecured,consideredgoodunlessotherwisestated)
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Non Current Current Non Current Current Non Current Current
Considered GoodTradeReceivables* - 1,438,593,704 - 1,126,891,264 - 273,902,619 ReceivablesfromRelatedparties - - - - - - Considered DoubtfulTradeReceivables - 18,905,367 - - - -
- 1,457,499,071 - 1,126,891,264 - 273,902,619 Less:AllowanceforExpectedCreditLoss
- (18,905,367) - - - -
Total trade receivables - 1,438,593,704 - 1,126,891,264 - 273,902,619
*TradeReceivablesIncludesReceivablesfromRelatedParties(i) Refernote32fordisclosuresrelatedtocreditriskandrelateddisclosures.(i) Refernote32fordisclosuresrelatedtocreditriskandrelateddisclosures.
Note 8 - Cash and Bank Balances
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Non Current Current Non Current Current Non Current Current
Cash and cash equivalents(1) Cashonhand - 349,395 - 923,883 - 1,328,588 (2) Balances with banks
Incurrentaccounts - 245,675 - 315,065 - 138,591 (3) ChequesinHand - 14,850,400 - - - -
- 15,445,470 - 1,238,948 - 1,467,179 Other Bank Balances(1) Depositwithoriginalmaturity
ofmorethan3monthsandlessthan 12 months
- 45,602,390 - 8,447,642 - 12,965,036
Total cash Bank Balances - 45,602,390 - 8,447,642 - 12,965,036
Note 9 - Share capital
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Number of
shares Amount Number of
shares Amount Number of
shares Amount
AuthorisedEquitysharesofRs1/-each 670,000,000 670,000,000 430,000,000 430,000,000 430,000,000 430,000,000
670,000,000 670,000,000 430,000,000 430,000,000 430,000,000 430,000,000
Issued, subscribed and paid upEquitysharesofRs1/-eachfullypaidup
663,495,495 663,495,495 303,401,400 303,401,400 303,401,400 303,401,400
ShareCapitalallotedConsequenttoDemergeroftradingunitofVikasEcotechLtdwiththeCompany
- - 238,733,535 238,733,535 - -
Bonussharesissuedduringtheyear* - - 121,360,560 121,360,560 - -
Total share capital 663,495,495 663,495,495 663,495,495 663,495,495 303,401,400 303,401,400
Shares issued in aggregate number and class of shares allotted by way of bonus shares:
TheCompanyhasissuedtotal12,13,60,560/-equitysharesduringFY2017-18asfullypaidupbonusshare.
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(a) Movements in equity share capital
Particulars Number of shares Amount
As at April 1, 2017 303,401,400 303,401,400 Changesduringtheyear 360,094,095 360,094,095 As at March 31, 2018 663,495,495 663,495,495 Changesduringtheyear - - As at March 31, 2019 663,495,495 663,495,495
Terms and rights attached to equity sharesTheCompanyhasonlyoneclassofequityshareswithaparvalueofRs.1/-pershare.Eachholderofequitysharesisentitledtoonevotepershare.
(b) Details of shareholders holding more than 5% shares in the company :
ParticularsAs at March 31, 2019 As at March 31, 2018 As at April 1, 2017 No. of
shares held % of holding No. of
shares held % of holding No. of
shares held % of holding
Equity shares with voting rightsVinodKumarGarg 67,941,720 10.24% 67,941,720 10.24% 67,941,720 10.24%Vikas Garg 207,828,299 31.32% 170,863,588 25.75% 170,863,588 25.75%Seema Garg 70,612,175 10.64% 69,510,000 10.48% 69,510,000 10.48%SahyogMultibaseLimited 38,321,019 5.78% 40,418,280 6.09% 40,418,280 6.09%
Note 10 - Other equityParticulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017
(a) Reserve and Surplus(i)CapitalReserve 59,802,250 59,802,250 2,845,563 (ii)SecurityPremium 106,312,074 106,312,074 198,587,000 (iii)RetainedEarnings 34,092,853 14,828,729 29,085,635
200,207,177 180,943,052 230,518,198 (b) Other
Comprehensive Income
37,271,344 779,133,222 429,221,032
Total other equity 237,478,521 960,076,274 659,739,230
(i) Capital reserves*
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Openingbalance 59,802,250 2,845,563 2,845,563
Add:CapitalReserveinconsequenttoDemergerofunitofM/sVikasEcotechLimitedwiththeCompany - 56,956,687 -
Closing balance 59,802,250 59,802,250 2,845,563 *CapitalreserverepresentsthedifferencebetweenvalueofthenetassetstransferredtotheCompanyinthecourseofbusinesscombinationsandtheconsiderationpaidforsuchcombinations
(ii) Security Premium *
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Openingbalance 106,312,074 198,587,000 198,587,000 Add:PremiumCreatedduringtheyear - - - Less:PremiumutilisedforonissueofBonusShares - (92,274,926) - Closing balance 106,312,074 106,312,074 198,587,000
*Securitiespremiumreserveisusedtorecordthepremiumonissueofshares.ThereservewillbeutilisedinaccordancewithprovisionsoftheAct.
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(iii) Retained earnings *
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Openingbalance 14,828,729 29,085,635 29,085,635 Add:Netprofitfortheyear 19,264,125 14,828,729 - Less:ProfitUilisedforissueofBonusShares - (29,085,635) - Closing balance 34,092,853 14,828,729 29,085,635
*Retainedearningsarecreatedfromtheprofit/lossoftheCompany,asadjustedfordistributionstoowners,transferstootherreserves, etc.(b) Other Comprehensive Income *
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Openingbalance 779,133,222 429,221,032 429,221,032 Add:NetfairvalueProfit/lossoninvestmentinequityinstrumentsthroughOCI(netoftax) (741,861,878) 349,912,190 -
Closing balance 37,271,344 779,133,222 429,221,032 Thisrepresentsthecumulativegainsandlossesarisingontherevaluationofequityinstrumentsmeasuredatfairvaluethroughothercomprehensiveincomethathavebeenrecognizedinothercomprehensiveincome,netofamountsreclassifiedtoprofitorlosswhensuchassetsaredisposedoffandimpairmentlossesonsuchinstruments
Note 11 - Financial liabilities - Borrowings
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Non Current Current Non Current Current Non Current Current
Secured *FromBanks - 253,972,169 - 195,831,367 1,186,298 142,329,394 FromNBFC’s 37,974,913 54,776,792 1,267,553 3,060,611 - 30,958,601
UnsecuredFrom Related Parties Vikas Garg 34,700,808 - 100,808 - - - Vishal Garg - - 67,500 - - - From OthersJasmineIspatPrivateLimited 10,968,247 - - - - -
Total Financial -Borrowings 83,643,968 308,748,961 1,435,861 198,891,978 1,186,298 173,287,995
*SecuredfromBankIncludesWorkingcapitalloanfromUnionBankofIndiaagainstinventoriesandBookDebtsandVariousimmovableassetsownedbydirectors.
*SecuredfromBankIncludesCashCreditLimitfromStateBankofIndiahypothecationagainstbookreceivablesofONGCPetroAdditionsLimited
*SecuredfromBanksIncludeshypothecationagainstcarfromHDFCBankLimited.Theloanisrepayblein36equalmonthlyinstallment of Rs. 89,968/- each.
*Secured fromNBFC Includeshypothecationagainst car fromMini Financial Services. The loan is repayble in36equalmonthlyinstallmentofRs.1,18,675/-each.ThePeriodofMaturityfromthebalancesheetdateisfifteenmonth.
*SecuredfromNBFCIncludeshypothecationagainstcarsTOYOTAfromKotakMahindraPrimeLimited.Theloanisrepayblein36equalmonthlyinstallmentofRs.46,695/-each.ThePeriodofMaturityfromthebalancesheetdateisEighteenmonth.
*SecuredfromNBFCIncludesloanagainstpledgingofSharesofVikasEcotechLimited(QuotedInvestment)fromAnandRathiGlobalfinanceLimited
*SecuredfromNBFCIncludeshypothecationagainsttwoPropertiesatGoregaon,MaharashtraTataCapitalHousingFinanceLimited.The loan is repayble in 120equalmonthly installmentofRs.5,40,148/-each.ThePeriodofMaturity fromthebalancesheetdateisonehundredninteenmonth.
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Note 12 - Trade payables
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Non Current Current Non Current Current Non Current Current
At amortised costDuetoMicroandSmallenterprises*
- - - - - -
DuetoOthers - 903,267,431 - 636,007,460 - 115,983,540
Total trade payables - 903,267,431 - 636,007,460 - 115,983,540 Theinformationhasbeengiveninrespectofsuchvendorstotheextenttheycouldbeidentifiedas“MicroandSmallEnterprises”enterprisesonthebasisof*informationavailablewiththeCompany.
Note 13 - Other Financial Liabilities
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Non Current Current Non Current Current Non Current Current
DeferedFinanceExpenses - 250,326
Total other liabilities - 250,326 - - - -
Note 14 - Other financial liabilities
Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017
Non Current Current Non Current Current Non Current Current
AdvanceformCustomers - 236,033,111 - 168,575,503 - 21,123,964
Statutoryduespayable - 1,392,459 - 1,842,272 - -
Expensespayable - 3,499,525 - 1,017,455 - 2,089,355
Total other financial liabilities - 240,925,095 - 171,435,230 - 23,213,319
Note 15 - Income Tax Liability (Net)
Particulars Balance Sheet31-Mar-19 31-Mar-18 1-Apr-17
(a) Income Tax AssetsAdvanceincometaxforpreviousyears - - - Advanceincometaxforcurrentyear - - -
Total (a) - - - (b) Income Tax LiabilitiesProvision for income tax for current year 9,370,461 6,598,540 1,350,000 Provisionforincometaxforpreviousyears - -
Total (b) 9,370,461 6,598,540 1,350,000
Income Tax Liabilities (Net) (b) - (a) 9,370,461 6,598,540 1,350,000
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Note 16. Deferred Tax Assets
Balance SheetNature - Asset/Liability 31-Mar-19 31-Mar-18 1-Apr-17
Deferred tax asset arising on account of :Property,plantandequipment,investmentpropertyandotherintangible
154,568 461,023 720,964
Lifetimeexpectedcreditlossoftradereceivables 5,369,124 - - FairvaluationoffinancialinstrumentsthroughFVTPL 71,093 - -
Total 5,594,785 461,023 720,964
Deferred tax liability arising on account of :FairvaluationoffinancialinstrumentsthroughOCI - - -
Sub-Total - - - Total Deferred Tax Assets 5,594,785 461,023 720,964
Changes in deferred tax Assets (net)
Particulars 1-Apr-17
Recognised in other
comprehensive Income
Recognised in Consolidated Statement of
Profit and Loss
31-Mar-18
Recognised in other
comprehensive Income
Recognised in Consolidated Statement of
Profit and Loss
31-Mar-19
AssetsProperty,plantandequipment,investmentpropertyandotherintangibleassets-depreciationandamortisation
720,964 - (259,941) 461,023 - (306,455) 154,568
Lifetimeexpectedcreditlossoftradereceivables
- - - - - 5,369,124 5,369,124
FairvaluationoffinancialinstrumentsthroughFVTPL
- - 71,093 71,093
Sub Total 720,964 - 5,109,183 461,023 - 5,133,762 5,594,785 Liabilities FairvaluationoffinancialinstrumentsthroughOCI
- - - - - - -
Sub Total - - - - - - -
Total 720,964 461,023 5,594,785
Note 17 - Revenue from operations
Particulars March 31, 2019 March 31, 2018
Saleofproducts* 2,132,710,996 1,947,091,256 OtherOperatingIncome 25,524,800 6,424,660 Total revenue from operations 2,158,235,796 1,953,515,916
Note 18 - Other income
Particulars March 31, 2019 March 31, 2018(a) Interestincome
-Otherfinancialassetscarriedatamortisedcost 3,746,261 6,925,635 (b) CommissionIncome 11,000,000 35,664,644 (c) DividendIncome 2,055,307 2,055,307 (d) ForeignExchangeFluctuation 9,380,552 10,015,826 (e) ProfitonsaleofCar 220,778 10,715 (f) ProfitonsaleofInvestments 14,158,141 509,375 (g) Misc.Income - 238,281
Total other income 40,561,039 55,419,783
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Note 19 - Purchase of Stock in Trade
Particulars March 31, 2019 March 31, 2018
Purchasesduringtheyear* 2,145,024,771 1,870,147,149
OtherOperatingExpenses 23,751,748 25,583,273
Total purchases made during the year 2,168,776,519 1,895,730,422 *Refer Note No. 2.1.3Note 20 - Change in inventories
Particulars March 31, 2019 March 31, 2018
OpeningStockofRawMaterial 70,717,106 - OpeningStockofFinishedGoods 58,050,505 85,768,121 OpeningStockofRealEstateDivision 19,559,462 19,559,462
TotalOpeningStock 148,327,073 105,327,583
Less:ClosingstockofRawMaterial - 70,717,106 Less:ClosingstockofFinishedGoods* 196,792,864 58,050,505 Less:ClosingstockofRealStateDivision 85,553,523 19,559,462
Total Closing Stock 282,346,387 148,327,073 Net Change in inventories (134,019,314) (42,999,490)*IncludesStockinTransitofRs.1,17,06,973/-CY
Note 21 - Employees benefit expenses *
Particulars March 31, 2019 March 31, 2018
SalariesandWages 10,431,954 16,502,605 StaffWelfare 233,208 425,255
Total Employees benefit expense 10,665,162 16,927,860 *Refer Note No. 2.1.3Note 22 - Finance cost*
Particulars March 31, 2019 March 31, 2018
Bank Charges 8,681,809 7,492,691 InterestExpenses 53,245,245 59,647,979
Total finance cost 61,927,054 67,140,669 *Refer Note No. 2.1.3Note 23 - Depreciation and amortisation expense*
Particulars March 31, 2019 March 31, 2018
Depreciationexpense-Onproperty,plantandequipment 7,221,139 7,336,408
-AmortisationofIntangibleAssets - 712,747
Total depreciation and amortisation expense 7,221,139 8,049,155 *Refer Note No. 2.1.3Note 24 - Other expenses*
Particulars March 31, 2019 March 31, 2018Advertisement&BusinessPromotion 56,619 932,232 AuditFees 700,000 450,636 FreightOutward 5,463,350 3,954,850 Donation 1,485,948 9,262,674 Fees&Filing 2,748,485 2,244,069 ElectricityExpenses 416,427 671,323 InsuranceCharges 1,515,563 2,300,504
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Legal&ProfessionalCharges 3,490,834 8,407,974 RentExpense 1,571,987 1,416,380 Tour&TravellingExpense 1,524,295 2,879,744 Vehicle Running & Maintanance 330,155 536,061 TelephoneExpenses 69,292 414,740 SecurityExpenses 246,000 862,300 Postage&CourierExp. 129,083 205,041 Printing&Stationery 379,129 177,232 ROCforIncreaseinAuthorisedCapital 2,160,000 - Corporatesocialresponsibility - 1,963,560 DemergerExpenses 523,461 - InterestonServiceTax,SalesTax,TDS 554,851 184,339 BalancesWriteOff 23,812,789 600,049 ExpectedCreditLoss 18,905,367 - Others 4,782,917 4,847,315
Total other Expenses 70,866,552 42,311,023 *Refer Note No. 2.1.3
Note 25 - Theamountof1,46,99,640/-inexceptionalitemsrelatestoprovisionmadeinrespectofGSTInputtransitionimpact,ontheinventorieslyingwithDemergedUnitoftheCompany.
Note 26 - Tax expense
Particulars March 31, 2019 March 31, 2018
Current TaxInrespectofcurrentyear 11,263,495 6,598,540
Total income tax expense 11,263,495 6,598,540
Note 27 - Earnings per share
Particulars March 31, 2019 March 31, 2018
ProfitfortheyearattributabletoownersoftheCompany[A] 19,264,125 14,828,729 WeightedaveragenumberofequitysharesforthepurposesofbasicEPS/dilutedEPS[B] 663,495,495 598,769,863
Basicearningpershare(facevalueofRs.1pershare)[A/B] 0.029 0.022 Dilutedearningpershare(facevalueofRs.1pershare)[A/B] 0.029 0.025
Note 28 - Contingent Liabilities and Commitments
Particulars March 31,2019 March 31,2018 Contingent Liabilities
CustomDuty* 5,367,546 - Guarantees** 5,029,750 16,019,090 IncomeTax*** 604,220 - Total 11,001,516 16,019,090
CommitmentsAsperPartnershipDeeddated11thOct,2018registeredinJammuandKashmircompanyhavemutuallyagreedwithotherpartnerstocontributeforcapitalofpartnershipfirmamountingtoRs.25,00,00,000/-forthe90%shareofProfit/LossofthePartnershipFirmw.e.f.01stOct,2018(netofamountinvestmentasperNote4(B))
207,500,000 -
Total 207,500,000 -
*DutysavedonExportObligationdues**GuaranteestoBanksandFinancialInstitutionsagainstcreditfacilitiesextendedtothirdparty***IncomeTaxdisputependingatCIT(A)Authority
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Event occuring after Reporting Date: ThedestructionofStockatgodownatRajasthanbyfireoccureonDated08-04-2019afterthereportingperiod,Whereapproxi-matelossRs.1.35CroreintimatedbythecompanytotheFiredepartmentandPolice.
Note 29 - Payment to AuditorsParticulars March 31,2019 March 31,2018 Statutoryaudit 700,000 150,000 others - 300,636 Total 700,000 450,636
Note 30 - Information on Segment Reporting pursuant to Ind AS 108 - Operating SegmentsOperating segments:
Real estate DivisionTradingofPVCResins/PlasticGranuels/others
Identification of segments: Thechiefoperationaldecisionmakermonitorstheoperatingresultsofitsbusinesssegmentsseparatelyforthepurposeofmakingdecisionsaboutresourceallocationandperformanceassessment.Segmentperformanceisevaluatedbasedonprofitandlossofthesegmentandismeasuredconsistentlywithprofitorlossinthesefinancialstatements.Operatingsegmentshavebeenidentifiedonthebasisofthenatureofproducts.Segment revenue and resultsTheexpensesandincomewhicharenotdirectlyattributabletoanybusinesssegmentareshownasunallocableexpenditure(netofunallocableincome).Segment assets and liabilities:Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables, cash and cashequivalentsandinventories.Segmentliabilitiesincludetradepayablesandotherliabilities.Commonassetsandliabilitieswhichcannotbeallocatedtoanyofthesegmentsareshownasapartofunallocableassets/liabilities.Themeasurementprinciplesofsegmentsareconsistentwiththoseusedinpreparationofthesefinancialstatements.Therearenointer-segment transfers
Particulars March 31, 2019 March 31, 2018India 2,132,710,996 1,953,515,916
Total 2,132,710,996 1,953,515,916
1. Revenue by nature of products (refer note 18)Particulars March 31, 2019 March 31, 2018
(a) Division Real estate 1,800,000 - (b) PVCResins/PlasticGranuels&Others 2,156,435,796 1,953,465,916
Total 2,158,235,796 1,953,465,916
2. Segment ResultsParticulars March 31, 2019 March 31, 2018
(a) Division Real estate 1,300,000 - (b) PVCResins/PlasticGranuels&Others 144,853,328 88,827,880
Sub Total 146,153,328 88,827,880 Less:FinanceCost 61,927,054 67,140,669 Less:Unallocableexpenditurenetofunallocableincome 70,866,552 - Profit before tax 13,359,722 21,687,211 Less:Taxexpenses 8,795,237 6,858,482 Netprofitfortheyear 4,564,485 14,828,729
3. Segment AssetsParticulars March 31, 2019 March 31, 2018
(a) PVCResins/PlasticGranuels&Others 77,683,470 76,121,720
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Note 31 - Related party transactions
(A) List of key management personnelMr. Hari Bhagwan Sharma, DirectorMr. Vikas Garg, Managing DirectorMr.ChandanKumar,ChiefFinancialOfficer(CFO)(Appointedon08.09.2018)Mr.DeepanshuArora,CompanySecretary(Appointedon04.01.2019)PoojaJain(Resignedon15.12.2018)
(B) List of DirectorsMr.PurshottamDassBhoot,DirectorMr. Vikas Garg, Managing DirectorMr.VivekGarg,Director(Appointedon04.01.2019)Mr. Hari Bhagwan Sharma,DirectorMr.PankajKumarGupta,DirectorMrs.AnubhutiMishra,DirectorMr.KapilGupta,Director
(C) List of subsidaries Nil
(D )Entities in which a Director or his/her relative is a member or DirectorM/sVikasEcotechLimited(Mr.VikasGargisDirector)M/sRaviCorpScience(90%CapitalInvestmentinFirmbyCompany)M/sKetavMulticorpPrivateLimited(Mr.VikasGargisDirector)M/sJhaGunjan&Associates(ProprietorofthefirmisrelativeofKMP)
(E) Relatives of KMPs/Directors*Ms.Seemagarg(WifeofDirector)*WithwhomtheCompanyhadtransactionsduringthecurrentyearorpreviousyear
(F) Terms & conditions:Theoutstandingbalancesattheyear-endareunsecuredandinterestfree.TheCompanyhasnotrecordedanyimpairmentofreceivablesrelatingtoamountsownedbyrelatedpartiesfortheyearended31March2019and31March2018.
(G) Theamountoftransactions/balancesdisclosedabovearewithoutgivingeffecttotheIndASadjustmentsonaccountoffairvaluation/amortisation.
(H) Transactions with Related Party (Amounts in Rs.`)
Related Party Outstanding as on 31.03.2019
Payable / Receivable
Outstanding as on 31.03.2018 Payable /
ReceivableNature of
transaction
As on 31.03.2019
As on 31.03.2018
Value of transaction
Value of transaction
Hari Bhagwan Sharma
41,871 Payable 42,234 Payable Director Re-muneration 590,129 506,808
ChandanKumar 75,000 Payable - - Salary 507,500 - DeepanshuArora 39,357 Payable - payable Salary 134,094 -
PoojaJain - Payable - - Salary 139,395 - Mrs. Seema Garg 363,500 Payable - Payable Rent 288,000 399,600 M/s Vikas Ecotech
Limited 182,548,243 Payable 61,508,374 Payable Sales 265,155,098 141,722,277 Purchase 44,775,750 81,437,112
Mr. Vivek Garg 300,000 Payable - Rent 300,000 - M/sKetavMulticorp
PrivateLimited 62,115,984 payable 9,040,000 ReceivablePurchase 101,759,308 -
Commission - 9,040,000 -
M/sJhaGunjan&Associates
Professional Fee
66,630 50,778
- payable 3,240 payable Reim-bursement Expenses
3,887,115 2,454,271
M/sRaviCorpScience 42,500,000 Investment -
CapitalIntro-duction
42,500,000 -
-
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Note 32 - Details of hedged and unhedged exposure in foreign currency denominated monetary items
A. Exposure in foreign currency - hedgedNIL
B. Exposure in foreign currency - unhedgedOutstandingoverseasexposurenotbeinghedgedagainstadversecurrencyfluctuation:
Particulars Period Foreign currency (In USD) Local currency (In Rs.)
Exportreceivables 31 March 2019 523,367 36,342,601
31 March 2018 2,289,434 148,973,453 Overseascreditors 31 March 2019 150,209 10,430,545
31 March 2018 1,706,703 111,055,151 Advancestosuppliers 31 March 2019 191,983 13,331,295
31 March 2018 124,151 8,078,477 Advancefromcustomers 31 March 2019 1,070,342 74,324,562
31 March 2018 314,875 20,488,892 BankbalancesinExchangeEarnerForeignCurrency(EEFC)account 31 March 2019 (416,808) (28,944,417)
31 March 2018 (453,269) (29,494,215)
Note 33 - Capital managementForthepurposeofcapitalmanagement,capitalincludestotalequityoftheCompany.Theprimaryobjectiveofthecapitalmanage-mentistomaximizeshareholdervalue.TheCompanymanagesitscapitalstructureandmakesadjustmentsinlightofchangesineconomicconditionsandtherequire-mentsofthefinancialcovenants.Tomaintainoradjustthecapitalstructure,theCompanymayadjustthedividendpaymenttoshareholders,returncapitaltoshareholdersorissuenewshares.TheCompanymonitorscapitalusingagearingratio,whichisnetdebtdividedbytotalcapitalplusnetdebt.TheCompanyincludeswithinnetdebt,interestbearingloansandborrowings,tradeandotherpayables,lesscashandcashequivalents,excludingdiscontinuedoperations,ifany.
Particulars March 31, 2019 March 31, 2018 April 1, 2017
Currentandnon-currentBorrowings(note11) 392,392,929 200,327,839 174,474,292 Tradepayables(note13) 903,267,431 636,007,460 115,983,540 Othercurrentfinancialliabilities(note12) 250,326 - - Othercurrentliabilities(note14) 240,925,095 171,435,230 23,213,319 Total debt 1,536,835,781 1,007,770,529 313,671,152 Less:Cashandcashequivalent(note8) (15,445,470) (1,238,948) (1,467,179)Net debt (A) 1,521,390,311 1,006,531,581 312,203,973
Total equity (note 9 & note 10) 900,974,016 1,623,571,769 963,140,630
Total equity and net debt (B) 2,422,364,327 2,630,103,350 1,275,344,603
Gearing ratio (A/B) 62.81% 38.27% 24.48%
Inordertoachievethisoverallobjective,theCompany’scapitalmanagement,amongstotherthings,aimstoensurethatitmeetsfinancialcovenantsattachedtotheinterest-bearingloansandborrowingsthatdefinecapitalstructurerequirements.Breachesinmeetingthefinancialcovenantswouldpermitthelendertoimmediatelycallloansandborrowings.Therehavebeennobreachesinthefinancialcovenantsofanyinterest-bearingloansandborrowinginthecurrentperiod.
Further,nochangesweremadeintheobjectives,policiesorprocessformanagingcapitalduringtheyearsendedMarch31,2019andMarch31,2018.TheCompanyisnotsubjecttoanyexternallyimposedcapitalrequirements.
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Note 33 - Capital management
Forthepurposeofcapitalmanagement,capitalincludestotalequityoftheCompany.Theprimaryobjectiveofthecapitalmanage-mentistomaximizeshareholdervalue.
TheCompanymanagesitscapitalstructureandmakesadjustmentsinlightofchangesineconomicconditionsandtherequirementsofthefinancialcovenants.Tomaintainoradjustthecapitalstructure,theCompanymayadjustthedividendpaymenttosharehold-ers,returncapitaltoshareholdersorissuenewshares.TheCompanymonitorscapitalusingagearingratio,whichisnetdebtdividedbytotalcapitalplusnetdebt.TheCompanyincludeswithinnetdebt,interestbearingloansandborrowings,tradeandotherpaya-bles,lesscashandcashequivalents,excludingdiscontinuedoperations,ifany.
Particulars March 31, 2019 March 31, 2018 April 1, 2017
Currentandnon-currentBorrowings(note11) 392,392,929 200,327,839 174,474,292 Tradepayables(note13) 903,267,431 636,007,460 115,983,540 Othercurrentfinancialliabilities(note12) 250,326 - - Othercurrentliabilities(note14) 240,925,095 171,435,230 23,213,319 Total debt 1,536,835,781 1,007,770,529 313,671,152 Less:Cashandcashequivalent(note8) (15,445,470) (1,238,948) (1,467,179)Net debt (A) 1,521,390,311 1,006,531,581 312,203,973
Total equity (note 9 & note 10) 900,974,016 1,623,571,769 963,140,630
Total equity and net debt (B) 2,422,364,327 2,630,103,350 1,275,344,603
Gearing ratio (A/B) 62.81% 38.27% 24.48%
Inordertoachievethisoverallobjective,theCompany’scapitalmanagement,amongstotherthings,aimstoensurethatitmeetsfinancialcovenantsattachedtotheinterest-bearingloansandborrowingsthatdefinecapitalstructurerequirements.Breachesinmeetingthefinancialcovenantswouldpermitthelendertoimmediatelycallloansandborrowings.Therehavebeennobreachesinthefinancialcovenantsofanyinterest-bearingloansandborrowinginthecurrentperiod.
Further,nochangesweremadeintheobjectives,policiesorprocessformanagingcapitalduringtheyearsendedMarch31,2019andMarch31,2018.
TheCompanyisnotsubjecttoanyexternallyimposedcapitalrequirements.
Note 34 - Financial risk management
TheCompany’sfinancialliabilitiesgenerallycomprisesofinterestbearingborrowing,tradepayablesandotherpayablesrep-resentedbyadvancesreceivedfromdealersandotheremployeebenefits.Themainpurposeofthesefinancialliabilitiesistoraisefinancesforthecompany.Thefinancialassetsheldbythecompanyconsistoftradereceivables,balancewithbanks,investmentsandplanassets.
Thecompanyismainlyexposedtocreditrisk,liquidityriskandmarketrisk.Theboardofdirectorsreviewsandagreespoliciesformanagingeachoftheseriskswhicharesummarizedbelow:
(i) Credit RiskCreditriskariseswhenacounterpartydefaultsonitscontractualobligationstopayresultinginfinanciallosstotheCompany.CurrentlytheCompanyisnotexposedtoanysignificantcreditriskfromitsoperatingactivities.
Financialassetsarewritten-offwhenthereisnoreasonableexpectationofrecovery,suchasdebtorfailingtoengagein arepaymentplanwiththeCompany.TheCompanyprovidessomeoverdueoutstandinginstitutionalcustomerswhichareevaluatedonacasetocasebasis.TheCompany’sconcentrationofriskwithrespecttotradereceivablesislow,asitscustom-er’sbaseiswidelyspreadacrossthelengthandbreadthofthecountry
Exposuretocreditrisks Asat Asat Asat31 March, 2019 31 March, 2018 31 March, 2017
Financial assets for which loss allowance is measured using Life time Expected Credit Losses (LECL)Tradereceivables 18,905,367 - -
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(ii) Liquidity riskTheCompanyusesliquidityforecasttoolstomanageitsliquidity.TheCompanyisabletosubstantiallyfunditsworkingcapitalfromcashandcashequivalents,cashcreditfacilitiesandcashflowthatisgeneratedfromoperation.TheCompanybelievesthattheworkingcapitalissufficienttomeetitscurrentrequirements.
Particulars On Demand < 1 year 1-5 years Total Carrying amount
As at 31 March 2019Current borrowings 50,573,287 257,997,900 - 308,571,187 308,571,187 Tradepayables - 907,377,129 - 907,377,129 907,377,129 Othercurrentfinancialliabilities -- 229,468,448 - 229,468,448 229,468,448 Non-current borrowings - 83,821,742 83,821,742 83,821,742
50,573,287 1,394,843,477 83,821,742 1,529,238,506 1,529,238,506
As at 31 March 2018Current borrowings - 198,891,978 - 198,891,978 198,891,978 Tradepayables - 627,549,721 - 627,549,721 627,549,721 Othercurrentfinancialliabilities - 187,454,320 - 187,454,320 187,454,320 Non-current borrowings - - 1,435,861 1,435,861 1,435,861
- 1,013,896,019 1,435,861 1,015,331,879 1,015,331,879
As at 1 April 2017Current borrowings - 173,287,995 - 173,287,995 173,287,995 Tradepayables - 115,983,540 - 115,983,540 115,983,540 Othercurrentfinancialliabilities - 23,213,319 - 23,213,319 23,213,319 Non-current borrowings - - 1,186,298 1,186,298 1,186,298
- 312,484,854 1,186,298 313,671,152 313,671,152
(iii) Market RiskMarketriskistheriskthatthefairvalueoffuturecashflowsofafinancial instrumentwillfluctuatebecauseofchangesinmarketprices.Marketpricescomprisetwotypesofrisk:currencyrateriskandinterestraterisk.(a) Interest rate risk:
Thecompany’sinterestrateriskarisesduetorestricteddepositwithbank.Theexposuretointerestriskinrelationtorestricteddeposits isbetween6%to9%.Restrictiononsuchdeposits isrealizedontheexpiryoftermsofrespectivearrangements.
(b) Foreign currency risk:ForeignCurrencyriskistheriskthatthefairvalueorfuturecashflowsofanexposurewillfluctuatebecauseofchangesinexchangeratesofanycurrency.TheCompany’sexposuretotherisksofchangesinforeignexchangeratesrelatesprimar-ilytotheCompany’sinvestmentsinforeigncompanies.
Note 35 - First time adoption of Ind AS
Transition to Ind ASThesearetheCompany’sfirstfinancialstatementspreparedinaccordancewithIndAS.
Theaccountingpoliciessetoutinnote2havebeenappliedinpreparingthefinancialstatementsfortheyearended31March2019,thecomparativeinformationpresentedinthesefinancialstatementsfortheyearended31March2018andinthepreparationofanopeningIndASbalancesheetat1April2017(thetransitiondate).InpreparingitsopeningIndASbalancesheet,theCompanyhasadjustedtheamountsreportedpreviously infinancialstatementspreparedinaccordancewiththeaccountingstandardsnotifiedunderCompanies(AccountingStandards)Rules,2006(asamended)andotherrelevantprovisionoftheAct(previousGAAPorIndianGAAP).Further,inviewoftheclassificationofcurrentandnon-currentitemsadoptedinaccordancewiththecriteriaspecifiedinIndAS1Presentation of Financial Statementsthecorrespondingfiguresofthepreviousyearshavebeenappropriatelyreclassifiedwheresoevernecessary.AnexplanationofhowthetransitionfrompreviousGAAPtoIndAShasaffectedtheCompany’sfinancialposition,financialperformanceandcashflowsissetoutinthefollowingtablesandnotes.
A. Exemptions and exceptions availedSetoutbelowaretheapplicableIndAS101optionalexemptionsandmandatoryexceptionsappliedinthetransitionfrompreviousGAAPtoIndAS.
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A.1 Ind AS optional exemptions
Deemed costIndAS101permitsafirst-timeadoptertoelecttocontinuewiththecarryingvalueforallofitsproperty,plantandequipmentasrecognisedinthefinancialstatementsasatthedateoftransitiontoIndAS,measuredasperthepreviousGAAPandusethatasitsdeemedcostasatthedateoftransitionaftermakingnecessaryadjustmentsforde-commissioningliabilities.ThisexemptioncanalsobeusedforintangibleassetscoveredbyIndAS38Intangible Assets.Accordingly, theCompanyhaselectedtomeasureallof itsproperty,plantandequipmentand intangibleassetsat theirpreviousGAAPcarryingvalue.
A.2 Ind AS mandatory exceptionsA.2.1 Estimates
Anentity’sestimatesinaccordancewithIndASsatthedateoftransitiontoIndASshallbeconsistentwithestimatesmadeforthesamedate inaccordancewithpreviousGAAP(afteradjustmentstoreflectanydifference inaccountingpolicies),unlessthereisobjectiveevidencethatthoseestimateswereinerror.
IndASestimatesasat1April2016areconsistentwiththeestimatesasatthesamedatemadeinconfirmitywithpreviousGAAP(afteradjustmentstoreflectanydifferenceinaccountingpolicies)apartfromcertainnewestimatesthatwerenotrequiredunderpreviousGAAP.
A.2.2 De-recognition of financial assets and liabilitiesIndAS101requiresafirst-timeadoptertoapplythede-recognitionprovisionsofIndAS109prospectivelyfortransactionsoccurringonorafterthedateoftransitiontoIndAS.However,IndAS101allowsafirst-timeadoptertoapplythede-recog-nitionrequirementsinIndAS109retrospectivelyfromadateoftheentity’schoosing,providedthattheinformationneededtoapplyIndAS109tofinancialassetsandliabilitiesderecognisedasaresultofpasttransactionswasobtainedatthetimeofinitiallyaccountingforthosetransactions.
TheCompanyhaselectedtoapplythede-recognitionprovisionsofIndAS109prospectivelyfromthedateoftransitiontoIndAS.
A.2.3 Classification and measurement of financial assetsIndAS101requiresanentitytoassessclassificationoffinancialassets(debtinstruments)intermsofwhethertheymeettheamortisedcostcriteriaortheFVTOCIcriteriabasedonthefactsandcircumstancesthatexistedasofthetransitiondateandtheCompanyhasfollowedthesame.
A.2.4 Impairment of financial assetsTheCompanyhasappliedtheimpairmentrequirementsofIndAS109retrospectively;however,aspermittedbyIndAS101,ithasusedreasonableandsupportableinformationthatisavailablewithoutunduecostorefforttodeterminethecreditriskatthedatethatfinancialinstrumentswereinitiallyrecognisedinordertocompareitwiththecreditriskatthetransi-tiondate.Further,theCompanyhasnotundertakenanexhaustivesearchforinformationwhendetermining,atthedateoftransitiontoIndASs,whethertherehavebeensignificantincreasesincreditrisksinceinitialrecognition,aspermittedbyIndAS101.
A. Reconciliations between previous GAAP and Ind ASIndAS101requiresanentitytoreconcileequity,totalcomprehensiveincomeforpriorperiods.ThefollowingtablesrepresentthereconciliationsfrompreviousGAAPtoIndAS.
A.1 Effect of Ind AS adoption on the balance sheet as at March 31, 2018 and April 1, 2017
Particulars Notes
31 March 2018 (End of last period presented under previous
GAAP)
1 April 2017 (Date of transition)
Previous GAAP *
Effect of transi-tion to Ind AS Ind AS Previous
GAAP *Effect of transi-tion to Ind AS Ind AS
ASSETSNon-current assetsProperty,plantandequipment
31,678,003 - 31,678,003 4,450,609 - 44,50,609
InvestmentProperty 44,443,717 - 44,443,717 46,719,303 - 4,67,19,303 Intangibleassets - - - 712,747 - 7,12,747
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FinancialassetsInvestment 429,092,987 779,133,222 1,208,226,209 429,092,987 429,221,032 85,83,14,019 DefferedTaxAssets 461,023 461,023 720,964 7,20,964 Othernon-currentassets
9,069,726 - 9,069,726 1,240,434 - 12,40,434
Total non-current assets
514,745,456 779,133,222 1,293,878,678 482,937,044 429,221,032 91,21,58,076
Current assetsInventories 148,327,073 - 148,327,073 30,290,180 - 3,02,90,180 Financialassets
Tradereceivables 1,126,891,264 - 1,126,891,264 273,902,619 - 27,39,02,619 Cashandcashequivalents
1,238,948 - 1,238,948 1,467,179 - 14,67,179
Othercurrentassets 59,157,233 - 59,157,233 47,378,692 - 4,73,78,692
Total current assets 1,335,614,517 - 1,335,614,517 353,038,670 - 35,30,38,670 Total assets 1,850,359,974 779,133,222 2,629,493,196 835,975,714 429,221,032 1,26,51,96,746
*ThepreviousGAAPfigureshavebeenreclassifiedtoconformtoIndASpresentationrequirementsforthepurposeofthisnote.
Particulars Notes
31 March 2018 (End of last period presented under previous
GAAP)
1 April 2017 (Date of transition)
Previous GAAP *
Effect of transi-tion to Ind AS Ind AS Previous
GAAP *Effect of transi-tion to Ind AS Ind AS
EQUITY AND LIA-BILITIESEquityEquitysharecapital 663,495,495 - 663,495,495 303,401,400 - 30,34,01,400 Otherequity 180,943,052 779,133,222 960,076,274 230,518,198 429,221,032 65,97,39,230 Total equity 844,438,547 779,133,222 1,623,571,769 533,919,598 429,221,032 96,31,40,630
LIABILITIESNon-current liabil-itiesFinancialLiabilities Borrowings 1,435,861 - 1,435,861 1,186,298 - 11,86,298 Total non-current liabilities 1,435,861 - 1,435,861 1,186,298 - 11,86,298
CurrentliabilitiesFinancialliabilities Borrowings 198,891,978 - 198,891,978 173,287,995 - 17,32,87,995
Tradepayables 636,007,460 - 636,007,460 115,983,540 - 11,59,83,540 Others - - - - - -
Othercurrentliabilities 171,435,230 - 171,435,230 23,213,319 - 2,32,13,319
IncomeTaxAssets(Net) 6,598,540 6,598,540 1,350,000 13,50,000
Total current lia-bilities 1,012,933,208 - 1,012,933,208 313,834,854 - 31,38,34,854
Total liabilities 1,014,369,069 - 1,014,369,069 315,021,152 - 31,50,21,152 Total equity and liabilities 1,858,807,616 779,133,222 2,637,940,838 848,940,750 429,221,032 1,27,81,61,782
*ThepreviousGAAPfigureshavebeenreclassifiedtoconformtoIndASpresentationrequirementsforthepurposeofthisnote.
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A.2 Reconciliation of total equity as at March 31, 2018 and April 1, 2017
Particulars NotesMarch 31, 2018
(End of last period present-ed under previous GAAP)
1 April 2017 (Date of transition)
Total equity (shareholders’ funds) under previous GAAP 844,438,547 533,919,598 Total adjustment to equity (779,133,222) (429,221,032)Total equity under Ind AS 1,623,571,769 963,140,630
A.3 Effect of Ind AS adoption on the statement of profit and loss for the year ended March 31, 2017
Particulars Notes
March 31, 2018 (last period presented under
previous GAAP)Previous GAAP *
Effect of transition to Ind AS
Revenuefromoperations 1,953,515,916 - Otherincome 55,419,783 - Total income 2,008,935,700 - ExpensesPurchaseofStockduringtheyear 1,895,730,422 - Change in inventories (42,999,490) - Financecosts 65,417,000 1,723,669 Depreciationandamortisationexpense 8,049,155 - Employeesbenefitexpenses 16,927,860 - Otherexpenses 42,049,756 350,117
Total expenses 1,985,174,703 2,073,786 Profit/(loss) before tax 23,760,997 (2,073,786)Taxexpense:- Current tax 6,598,540 - -Deferredtaxliability 259,942 - Total tax expense 6,858,482 - Profit / (loss) for the year 16,902,515 (2,073,786)*ThepreviousGAAPfigureshavebeenreclassifiedtoconformtoIndASpresentationrequirementsforthepurposeofthisnote.
Particulars Notes
March 31, 2018 (last period presented under
previous GAAP)Previous
GAAPEffect of transition
to Ind AS
Other comprehensive income A(i) Itemsthatwillnotbereclassifiedtoprofitorloss
-Re-measurementsoftheInvestments - 349,912,190 -incometaxrelatingtoitemsthatwillnotbereclassifiedtoprofitor loss - -
B(i) Itemsthatmaybereclassifiedtoprofitorloss - - B(ii) Incometaxrelatingtoitemsthatmaybereclassifiedtoprofit&loss - -
Other comprehensive income for the year, net of tax - 349,912,190 Total comprehensive income for the year - 349,912,190
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A.4 Reconciliation of total comprehensive income for the year ended March 31, 2017
Particulars Note No.
March 31, 2018 (End of last period presented under previous GAAP)
Profit as per previous GAAP 16,902,515 Total effect of transition to Ind AS (2,073,786)Profit / (loss) for the year as per Ind AS 14,828,729 Othercomprehensivefortheyear(netoftax) 349,912,190Total comprehensive income under Ind AS 364,740,919
Note:UnderpreviousGAAP,totalcomprehensiveincomewasnotreported.Therefore,theabovereconciliationstartswithprofitunderpreviousGAAP.
A.5 Effect of Ind AS adoption on the statement of cash flows for the year ended March 31, 2018
Particulars
March 31, 2018 (last period presented under previous GAAP)
Previous GAAP
Effect of transition to
Ind ASInd AS
Netcashflowsfromoperatingactivities (231,844,143) - (231,844,143)Netcashflowsfrominvestingactivities (22,787,186) - (22,787,186)Netcashflowsfromfinancingactivities 254,403,098 - 254,403,098 Net increase (decrease) in cash and cash equivalents (228,231) - (228,231)Cash and cash equivalents at the beginning of the year(Note 9) 1,467,179 - 1,467,179 Cash and cash equivalents at the end of the year (Note 9) 1,238,948 - 1,238,948
Note 36 Fair Value HierarchyThetableshownbelowanalysesfinancialinstrumentscarriedatfairvalue.Thedifferentlevelshavebeendefinedbelow:-Level1:QuotedPrices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesLevel2:InputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectly(i.e.,asprices)orindirectly(i.e.Derivedfromprices)Level3:Inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs)
a) Financial assets and liabilities measured at fair value through profit and loss (OCI) at 31 March 2019
Level1 Level2 Level3Financial AssetsInvestmentinquotedequityinstruments 435,093,996 - - Investmentinunquotedequityinstruments - - - ExpectedCreditLoss - 18,905,367.00 - Financial LiabilitiesDefferedFinanceLiability - 250,326.00 - Derivativesnotdesignatedashedges - - -
Financial assets and liabilities measured at fair value through profit and loss (OCI) at 31 March 2018
Level1 Level2 Level3Financial AssetsInvestmentinquotedequityinstruments 1,208,226,209 - - Investmentinunquotedequityinstruments - - - Financial LiabilitiesFinancialGuaranteeContracts - - - Derivativesnotdesignatedashedges - - -
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Financial assets and liabilities measured at fair value through profit and loss (OCI) at 1 April 2017
Level1 Level2 Level3Financial AssetsInvestmentinquotedequityinstruments 858,314,019 - - Investmentinunquotedequityinstruments - - - Financial LiabilitiesFinancialGuaranteeContracts - - - Derivativesnotdesignatedashedges - - - Description of significant unobservable input to valuation:
Valuation technique Significant unobservable techniquesDCFMethod Interestsavedapproach
b) Financial instruments at amortized cost Thecarryingamountoffinancialassetsandfinancial liabilitiesmeasuredatamortisedcost inthefinancialstatementsarearea-sonableapproximationoftheirfairvaluessincetheCompanydoesnotanticipatethatthecarryingamountswouldbesignificantlydifferentfromthevaluethatwouldeventuallybereceivedorsettled.
c) During the year there has been no transfer from one level to another
Note 37 - Fair value measurements
Financial instruments by category
Particulars March 31, 2019 March 31, 2018 April 1, 2017
FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost
Financial assets Non Current Investments -
477,593,996 - -
1,208,226,209 - -
858,314,019 -
Tradereceivables 18,905,367 - 1,419,688,337 - - 1,126,891,264 - - 273,902,619 Cashandbankbalances - - 15,445,470 - - 1,238,948 - - 1,467,179
Total financial assets
477,593,996 1,435,133,806
1,208,226,209 1,128,130,212
858,314,019 275,369,798
Financial liabilities Borrowings 10,968,247 - 72,675,721 - - 1,435,861 - - 1,186,298 Tradepayables - - 903,267,431 - - 636,007,460 - - 115,983,540 Otherpayables - - 250,326 - - 36,802,410 - - 19,535,233
Total financial liabilities - 976,193,478 - 674,245,731 - 136,705,071 Themanagementassessedthatcashandcashequivalents,otherbankbalance,loans,tradepayablesandotherfinancialinstru-mentsapproximatetheircarryingamountslargelyduetotheshorttermmaturitiesoftheseinstruments.
Note 38 - Recent Accounting pronouncementsTheMinistryofCorporateAffairs(MCA)videnotificationdated30March2019hasissuedtheCompanies(IndianAccountingStand-ards)AmendmentRules,2019andhasamendedIndAS116LeaseclassificationofaleasecontractinwhichacquireeisthelessoraseitheranoperatingleaseorafinanceleaseinaccordancewithIndAS116requiresanentitytoprovidedisclosuresinthefinancialstatement.Oninitialapplicationoftheamendment,entitiesarenotrequiredtoprovidecomparativeinformationforprecedingperi-ods.Theseamendmentsareeffectiveforannualperiodsbeginningonorafter1April2019.Applicationofthisamendmentswillnothaveanyrecognitionandmeasurementimpact.However,itwillrequireadditionaldisclosureinthefinancialstatements.
Note 39-Previousyearamountshavebeenre-grouped/re-castedwhereverconsiderednecessary,tomakethemcomparablewiththose of the current year.
Note 40-IntheopinionoftheBoardofDirectors,currentassetshaveavalueonrealizationintheordinarycourseofbusinessatleastequaltotheamountatwhichtheyarestatedinthebalancesheetandprovisionsforallknown/expectedliabilitieshavebeenmade.
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Note 41 - Approval of standalone financial statementsThestandalonefinancialstatementswereapprovedforissuebytheBoardofDirectorsoftheCompanyon27April2019subjecttoapprovalofshareholders.
As per our report of even dateFor Goyal Nagpal & Co. For and on behalf of the Board of CharteredAccountants Vikas Multicorp Limited FirmRegn.No.018289C
Sd/- Sd/-Sd/- Hari Bhagwan Sharma Vikas Garg CA Virender Nagpal (Whole-TimeDirector) (Director)Partner DIN:02542653 DIN:00255413MembershipNo.416004
Sd/- Sd/-Deepanshu Arora Chandan Kumar
Place:NewDelhi (CompanySecretary) (ChiefFinancialOfficer)Dated:27April,2019
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VIKAS MULTICORP LIMITEDRegd. Office: G-1 34/1, East Punjabi Bagh,
New Delhi, West Delhi- 110026CIN: U25111DL1995PLC073719
Email ID:- [email protected] Website:- www.vikasmulticorp.comTelephone No.:- +91-11-40450110
PROXY FORM
Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014
ANNUAL GENERAL MEETING –THURSDAY, 26th SEPTEMBER, 2019 at 11.30 A.M.
Nameofthemember(s):
Registeredaddress:
e-mailId:
FolioNo./ClientId*:
DPId*:
I/Webeingthemember(s)holding.......................sharesherebyappoint:
(1) Name………………………………….Address…………………….…………e-mailID……………….……orfallinghim/her;
(2) Name………………………………….Address…………………….…………e-mailID……………….……orfallinghim/her;
(3) Name………………………………….Address…………………….…………e-mailID……………….……
asmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfattheAnnual General Meeting of the Company,tobeheldon-Thursday, 26th September at 11.30 A.M. at Haryana Maitri Bhawan, Sainik Vihar, Pitampura, New Delhi-110034 andatanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow:
Res. No. Resolution For# Against#
1. Toreceive,considerandadopttheFinancialStatementsoftheCompanyfortheyearended31stMarch,2019
2. ToappointaDirectorinplaceofMr.VikasGarg(DIN00255413),whoretiresbyrotationandbeingeligible,offershimselfforre-appointment
3. AppointmentofM/sGoyalNagpal&Co.,CharteredAccountantsasStatutoryAuditorsoftheCompany
4. AppointmentofMs.MeenaBansal(DIN:08400953)asanIndependentDirec-toroftheCompany
5. AppointmentofMr.VivekGarg(DIN:00255443)asManagingDirectoroftheCompanyandapprovalofhisremuneration
6. ToConsolidatetheFaceValueoftheEquitySharesoftheCompanyandconse-quentialalterationofMemorandumofAssociationoftheCompany.
*Applicableforsharesheldinelectronicform.
Signedthis…………………….dayof…………………..2019
……………..…………..........………
Signature
…………………………………………..
Signature of proxy holder(s)
Affix one
Rupee
Revenue
Stamp
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Notes:
(1) ThisformofproxyinordertobeeffectiveshouldbedulycompletedanddepositedattheRegisteredOfficeoftheCompanynotlaterthan48hoursbeforethemeeting.
(2) AProxyneednotbeamemberoftheCompany.
(3) Apersoncanactasaproxyonbehalfofmembersnotexceedingfiftyandholdingintheaggregatenotmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrights.Amemberholdingmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasaproxyforanyotherpersonorshareholder.
(4) #Thisisonlyoptional.Pleaseput‘X’or‘√’intheappropriatecolumnagainsttheresolutionsindicatedintheBox.Ifyouleave‘For/or‘Against’columnblankagainstanyoralltheresolutions,yourProxywillbeentitledtovoteinthemannerashe/shedeemsappropriate.
(5) Appointingaproxydoesnotpreventamemberfromattendingthemeetinginperson,ifhesodesire.
(6) Inthecaseofjointholders,thesignatureofanyoneholderwillbesufficient,butnamesofallthejointholdersshouldbementioned.
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VIKAS MULTICORP LIMITEDRegd. Office: G-1 34/1, East Punjabi Bagh,
New Delhi, West Delhi- 110026CIN: U25111DL1995PLC073719
Email ID:- [email protected] Website:- www.vikasmulticorp.comTelephone No.:- +91-11-40450110
Sr. No………….ATTENDANCE SLIP
ANNUAL GENERAL MEETING –THURSDAY, 26th SEPTEMBER, 2019 at 11.30 A.M.
DP ID* NAME AND ADDRESS OF THE REGISTERED SHAREHOLDER/PROXY
Client ID* / Folio No.
No. of Share(s)
I/WecertifythatI/Weam/areregisteredshareholder/proxyoftheCompany.
I/Weherebyrecordmy/ourpresenceattheAnnualGeneralMeetingoftheCompanyonThursday, 26th September, 2019 at 11.30 A.M. at Haryana Maitri Bhawan, Sainik Vihar, Pitampura, New Delhi-110034.
………………………………..
Signature
Note:Pleasecompletethisandhanditoverattheentranceofthehall.
*Applicableforsharesheldinelectronicform.
No Gift / Gift Coupon / Refreshment Coupon will be distributed at the Meeting.
Untitled map
Untitled layer
Haryana Maitri Bhawan
Haryana Maitri Bhawan112,CaptainSatishMarg,SainikVihar, Pitam Pura, Delhi, 110034
MAP TO THE LOCATION OF ANNUAL GENERAL MEETING
If undelivered please return to :VIKAS MULTICORP LIMITED
Regd. Office: G-1 34/1, East Punjabi Bagh,New Delhi, West Delhi- 110026CIN: U25111DL1995PLC073719
Email ID:- [email protected] Website:- www.vikasmulticorp.comTelephone No.:- +91-11-40450110