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Company Information

Home » Market » Company Information

Vikas Ecotech Ltd.

May 22, 03:04
28.35 +0.95 (+ 3.47 %)
 
VOLUME : 116080
Prev. Close 27.40
Open Price 27.25
TODAY'S LOW / HIGH
27.25
 
 
 
28.80
Bid PRICE (QTY.) 28.25 (581)
Offer PRICE (Qty.) 28.35 (621)
52 WK LOW / HIGH
18.50
 
 
 
48.50
May 22, 02:59
28.15 +0.70 (+ 2.55 %)
 
VOLUME : 678995
Prev. Close 27.45
Open Price 27.40
TODAY'S LOW / HIGH
27.00
 
 
 
28.80
Bid PRICE (QTY.) 28.15 (3854)
Offer PRICE (Qty.) 28.30 (3515)
52 WK LOW / HIGH
18.50
 
 
 
48.50
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Market Cap. ( ₹ ) 787.92 Cr. P/BV 6.00 Book Value ( ₹ ) 4.69
52 Week High/Low ( ₹ ) 49/19 FV/ML 1/1 P/E(X) 34.01
Bookclosure 28/09/2017 EPS ( ₹ ) 0.83 Div Yield (%) 0.18
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2017-03 

Background and Nature of Operations

Vikas Ecotech Limited (VEL) is a Delhi based professionally managed Company incorporated on 30th November, 1984 under the Companies Act, 1956, having its registered office at Vikas Apartments, 34/1, East Punjabi Bagh, New Delhi - 110 026 and is listed on National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE).

Vikas Ecotech is an emerging player in the global arena engaged in the business of High-end specialty chemicals. It’s an integrated, multispecialty product solutions company, producing a wide variety of superior quality, eco-friendly additives and rubber-plastic compounds. Its additives and rubber-plastic compounds are process-critical and value-enabling ingredients used to manufacture a varied cross-section of high-performance, environment-friendly and safety-critical products. From agriculture to automotive, cables to electricals, hygiene to healthcare, polymers to packaging, textiles to footwear, the company’s products serve a diverse range of global industry needs. Company has its manufacturing plants in the state of Rajasthan, Jammu and Kashmir and Uttar Pradesh. Also, the company has commenced construction of new State-of-the-art Plant & Innovation Center at Dahej and Kandla in Gujarat to cater to Export and Western & Southern Indian markets.

Equity Shares

The Company has only one class of Equity having a par value Rs.1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Preferential Equity Allotment

In accordance with the provision of section 39 of the Companies Act, 2013 read together with the Companies (Prospectus and Allotment of Securities) Rules, 2014 and pursuant to the letter of offer for issuance of shares and approval of the company, the Company has issued 2,56,60,000 shares as preferential Equity shares of ’ 1 per equity share at a premium of Rs.16 per share during the current financial year.

The following is the List of Persons to whom such preferential equity shares are issued:

HDFC - Vehicle Loan Agreement No. 38982281 was taken during 2016 year and carries interest @ 9.4% per annum. The Loan is repayable in 36 instalments of Rs.2,07,805 each along with interest from the date of Loan. The loan is secured by hypothecation of car of the Company.

HDFC - Vehicle Loan Agreement No. 24353585 was taken during 2013 year and carries interest @ 15.65% per annum. The Loan is repayable in 36 instalments of Rs.22,837 each along with interest from the date of Loan. The loan is secured by hypothecation of car of the Company. This Loan has been discharged completely during the year under consideration.

ICICI Loan No. LADEL 00026874591 was taken during 2013 year and carries interest @ 9.09 % per annum. The Loan is repayable in 36 instalments of Rs.1,11,450 each along with interest from the date of Loan. The loan is secured by hypothecation of car of the Company. This Loan has been discharged completely during the year under consideration.

ICICI Loan No. LA DEL 00035146099 was taken during 2016 year and carries interest @ 9.10% per annum. The Loan is repayable in 36 instalments of Rs.2,01,906 each along with interest from the date of Loan. The loan is secured by hypothecation of car of the Company.

Toyota Financial Services India Ltd - NDEL1085441 was taken during 2016 year and carries interest @ 9.24% per annum. The Loan is repayable in 60 instalments of Rs.35,496 each along with interest from the date of Loan. The loan is secured by hypothecation of car of the Company.

Term Loan III - 11167015000461 (Oriental Bank of Commerce) Closing balance limits Rs.40.24 Lacs. The Term Loan is secured on the Plant and Machinery and Land and Building located at G-24-29 & 30, RIICO Industrial Area, Vigyan Nagar, Shahjahanpur, Dist. Alwar, Rajasthan owned by Vikas Ecotech Limited. The rate of interest shall be BR 2% 0.5%. The Period of Maturity from the Balance Sheet date is 7 months.

Term Loan IV - 8767025001865 (Oriental Bank of Commerce) Closing balance limits Rs.166.50 Lacs . The Term Loan is secured on the 1st exclusive charge by way of hypothecation on plant & machinery financed by OBC. The rate of interest shall be BR 2% .5%. The Period of Maturity from the Balance Sheet date is 36 months.

Term Loan V - 8767025002281 (Oriental Bank of Commerce) Closing balance limits Rs.342.65 Lacs. The Term Loan is secured on the 1st exclusive charge by way of hypothecation on plant & machinery and construction of Building financed by OBC. The rate of interest shall be BR 2% .5%. The Period of Maturity from the Balance Sheet date is 42 months.

ICICI Bank Loan No. LADEL 00002038205: By virtue of acquisition of remaining share in Sigma Plastic Industries, the Loan (Firm has taken term loan from ICICI Bank of Rs.500 Lacs repayable in 120 EMI of Rs.7,17,355 each on 12th November, 2013, this is secured against house No. 10, Road No. 4 East Punjabi Bagh, New Delhi. The properties in the name of the Directors of the Company) became part of the capital structure of the Company and the Loan is in the process of transferring in the name of the borrower, from Sigma Plastic Industries to Vikas Ecotech Limited and has not been transferred in the name of Company as on Balance Sheet Date.

CASH CREDIT

Company is availing working capital limits under consortium of Oriental Bank of Commerce, Bank of Baroda, Punjab National Bank & Development Bank of Singapore with Oriental Bank of Commerce as lead banker in consortium and others banks are member banks.

The Company is availing a Cash Credit (Hypo) limit of Rs.6,120 Lacs which include PCFC Limit of ’ 2,880 Lacs from Oriental Bank of Commerce against hypothecation of stock, receivables, advance to suppliers and other current assets on pari passu basis with consortium members. No. DP against stock and Book Debts exceeding 180 days to be allowed. Margins 20% and the rate of interest is Bank MCLR 2% which at present is 11.60% p.a. Further the Company is also availing LC/DA/DP basis non Fund Based Limit of Rs.2,760 Lacs (which includes both sides inter change ability LC to CC for Rs.1,000 Lacs) for procurement of Raw Material and Spares. Cash Margins is 15% in the shape of FDR on LC limits. The proposal of renewal cum enhancement is under process with Oriental Bank of Commerce as on Balance Sheet date.

The Company is also availing Cash Credit limit of Rs.1,550 Lacs from Bank of Baroda with a sub-limit of PC/PCFC/FBP/FBD of Rs.575 Lacs under the same Cash Credit limit. The limit is secured by way of hypothecation of stock, receivables & other current assets on pari passu basis with consortium members. DP shall be permitted against receivable upto 180 days. Margin is 20% & Rate of interest is MCLR SP 1.85% which is at present 11.50%. Further the Company is availing Non Fund Based LC (Import/Inland/DP/DA/BG, Buyers Credit) limits of Rs.650 Lacs for procurement of raw material and spares. Cash Margin is 15% in the shape of FDR on LC limits.

The Company is also availing Cash Credit limit of Rs.1,530 Lacs from Punjab National Bank with a sub limit of PC/PCFC/FBP/FBD of Rs.720 Lacs under the same Cash Credit limit. The limit is secured by way of hypothecation of stock, receivables & other current assets on pari passu basis with consortium members. DP shall be permitted against receivable upto 180 days. Margin is 20 % & Rate of interest is BR 2.75% which at present is 12.35 %. Further the Company is availing Non Fund Based LC (Import/Inland/DP/DA/BG, Buyers Credit) limits of Rs.690 Lacs for procurement of raw material and spares. Cash Margin is 15% in the shape of FDR.

The Company is also availing Cash Credit limit of Rs.1,000 Lacs from Development Bank of Singapore with a sub limit of PC/PCFC/FBP/FBD of Rs.500 Lacs under the same Cash Credit limit. The limit is secured by way of hypothecation of stock, receivables & other current assets on pari passu basis with consortium members. DP shall be permitted against receivable upto 180 days. Margin is 20% & Rate of interest is MCLR 1.35% which at present is 10.5%. Further the Company is availing Non Fund Based LC (Import/Inland/DP/DA/BG, Buyers Credit) limits of Rs.500 lacs (which includes both side inter change ability LC to CC for Rs.500 Lacs) for procurement of raw material and spares. Cash Margin is 15% in the shape of FDR.

Further the limit is secured on following Collateral Properties:

1) Property bearing Khasra No.14/5/2 6min, 15/1/2, 9/2 &10 min Village Ghevra, near Mundka Railway Crossing, Delhi owned by Ms. Seema Garg and Ms. Namita Garg.

2) Roof right of Property 34/1, Vikas Apartments, East Punjabi Bagh, New Delhi owned by Company.

3) Industrial property at Industrial Growth Centre, Phase 1, Dist. Samba, J&K owned by Company.

4) Land & building situated at Industrial Growth Centre, Phase-1, Dist. Samba, J&K owned by Company.

5) F-5, Vikas Apartment, 34/1, 1st Floor, East Punjabi Bagh, New Delhi owned by Ms. Seema Garg.

6) Industrial property at G-30, RIICO Industrial Area, Vigyan Nagar, Shahjahanpur Dist. Alwar, Rajasthan.

7) Property situated at Khasra no. 710/201 in Village Rithala, Delhi owned by Mr. Vivek Garg.

8) A-28 Khasra No.12/10 and 13/6 Village Kamrudin Nagar, Nangloi owned by Ms. Seema Garg and Ms. Usha Garg.

9) 770, Khasra No.142/770, situated at Village Khanjawala, New Delhi owned by Ms. Usha Garg

10) B-1, 34/1, Vikas Apartment, Punjabi Bagh, New Delhi owned by Ms. Usha Garg.

11) Land situated in village Sultanpur Dabas, New Delhi owned by Company.

12) Industrial property at G-24-29 RIICO Industrial Area, Vigyan Nagar, Shahjahanpur Dist. Alwar, Rajasthan, owned by Company.

13) Industrial Property at Dahej-II, Industrial Estate, Dist. Bharuch, Gujarat owned by Company.

14) Industrial Property No. F-7 & 8, Vigyan Nagar RIICO Indl. Area, Shahjahanpur, Tehsil Neemrana, Distt. Alwar, Rajasthan.

Further limits are guaranteed by Personal guarantee of the following:

1) Mr. Nand Kishore Garg

2) Mr. Vikas Garg

3) Mr. Vivek Garg

4) Ms. Seema Garg

5) Ms. Usha Garg

6) Ms. Namita Garg

*Advance to Suppliers includes Rs.96,50,143 (ninety-six lacs fifty thousand one hundred and forty-three only) to Vikas Multicorp Limited (formerly known as Moonlite Technochem Private Limited) & ’ 1,69,84,258 (one crore sixty-nine lacs eighty four thousand two hundred and & fifty-eight only) to Vikas Polymers (India) in which Director of Vikas Ecotech Ltd is Partner.

**Advance against Capital Assets includes Rs.6,22,220 (six lacs twenty-two thousand two hundred and twenty only) to MM Info Systems Private Limited in which Director of Vikas Ecotech Limited is a Director.

The board of directors, subject to approval of the member has recommended dividend of 5% of face value per Equity Share.

Note 1: Commitments

Capital Commitment: There are no any other contracts remaining to be executed on capital account and not provided for as at 31st March, 2017 except the Company has intended to purchase the property for Rs.8,37,00,000, at New Rohtak road, New Delhi. Company has made the payment of Rs.2,30,25,252 for the same up to 31st March, 2017, remaining payment and the registration will be done in upcoming years and the same will be registered in the name of the Company after completing all the formalities for taking over the units.

Company has contracted with Smart Roof Solar Solution Pvt. Ltd. for the designed, installed & commissioned Grid Connected Solar Roof Top project for Rs.2,20,75,000.The company has paid a sum of Rs.5,00,000 up to 31st March, 2017.

Lease Commitment: The Company has taken various premises on operating leases. The rental of Rs.10,41,031 (Previous year Rs.3,55,241) has been charged to Profit and Loss Account for the year ended 31st March 2017. The under lying agreements are executed for a period generally ranging from one year to three years, renewable at the option of the Company and the Lessor. There are no restrictions imposed by such leases and there are no sub leases.

Note 2:

On 31st March 2017, Company’s newly opened Poly Propylene manufacturing plant was destroyed in a fire that engulfed this particular section of company’s manufacturing facility in Shahjahanpur, Rajasthan. The damage was limited to only one building that housed the Poly Propylene section and a material warehouse. The company’s four other manufacturing units in the same factory Plot are intact and fully operational. No human casualties were reported and all company’s employees and workers were safe. In fire the stock amounting to Rs.10,65,49,789 was destroyed along with the building and Plant & Machinery worth Rs.1,68,27,173 and Rs.3,97,30,957 respectively was also destroyed. All the Stocks, Plant & Machineries & Building were fully insured with The Oriental Insurance Company Ltd. and the Company has successfully filed and lodged the claim with the Insurance company.

The management of company has recognised the complete loss during this year under review, as the claim is under process for approval as on date. In accordance with the accounting policies, the company shall account for insurance claims in the year in which the same is approved by the Insurance company and accordingly consider the same as Income in the respective financial year.

Note 3:

There is a Contingent Liability of Rs.67 Lacs in the form of Bank Guarantee and Rs.2,736 Lacs in respect of LC and duty saved against Advance License is Rs.509.54 Lacs. LC Limit was utilized against the Trade Payable outstanding in Note No.9.

Company has filed Civil Suit against ADM Agro Industries Kota and Akola Limited, supplier of Soya Bean Oil in the Saket Court, Delhi case No. CS OS No. 198/214 Amounting Rs.99,61,516 due to poor supply of Soya Bean oil. Company has suffered a loss due to such poor quality of material supplied by them and non recovery of money from debtors and it also affected the goodwill of the Company. ADM Agro Industries Kota and Akola Limited has also filed Winding up Petition against Company in High Court case no CO PET No. 64/2014 due to non-payment of Rs.41,15,664 along with interest at the rate of 18% from the due date of payment. ADM Agro Industries Kota and Akola Limited has also filed a summary suit for recovery of debts in Tis Hazari Court, Summary Suit no. - CS(OS) 3077/2014.

*The Company Vikas Ecotech Limited acquired 100% share in Sigma Plastic Industries, and merged the same in the Vikas Eco Tech Limited in FY 2014-15, by virtue of this, pending litigation of Sigma Plastic Industries has also become part of pending litigation of Vikas Ecotech Limited.

Note 4:

Inventory as stated in Note no. 15 includes Real Estate inventory of Rs.266.17 Lacs.

Note 5: Segment Reporting

The segment reporting of the Company has been prepared in accordance with Accounting Standard (AS-17) Accounting for Segment Reporting issued by The Institute of Chartered Accountants of India.

The Company has determined the following business segments as the primary segments for disclosure:

1) Chemical Division

a. Manufacturing Division

b. Trading Division

2) Real Estate Division

The Geographical Segment consists of:

1) Domestic (Sales to customers located in India)

2) Export (Sales to customers located outside India)

The above business segments have been identified and reported considering:

1) The nature of the services

2) The related risk and returns

3) The internal financial reporting systems

Purchase directly attributable to segments is reported based on items that are individually identifiable to that segment. Common allocable costs are allocated to each segment to that common cost.

Segment revenue, results, assets and liabilities include amounts identifiable to each segment and amounts allocated on a reasonable basis based on their relationship to the operating activities of the segment.

Note 6:

The Company had not received information from suppliers regarding their status under the “Micro, Small and Medium Enterprises Development Act 2006” and accordingly no disclosure regarding overdue outstanding of principal amount and interest there on has been given.

Note 7:

In the opinion of the Management of the Company, all current assets, loans and advances appearing in the balance sheet as at 31st March, 2017 have a value on realization in the ordinary course of the Company’s business at least equal to the amount at which they are stated in the Balance Sheet. Certain balances shown under current assets, current liability, loans and advances and balances with banks are subject to confirmation/reconciliation.

Note 8:

The scheme of amalgamation was filed under section 391 read with section 394 of the companies Act 1956 w.e.f. 1st April, 2007 for the amalgamation of the following three transferor companies a) Hulchul International Private Limited, b) Vikas Utilities Private Limited, c) South Delhi Projects Private Limited, with the transferee company, Vikas Ecotech Limited (formally known as Vikas Globalone Limited). The same had been approved by the High Court wide order no 18457/1 dated 17th October, 2008. The amalgamation has been accounted for the manner specified in the Scheme, the Surplus of Rs.9,65,934 arising out of amalgamation is shown under the head Capital Reserve Account.

In the opinion of the Management, no provision is required to be made against the recoverability of the balances (referred in Note no. 36) except provided.

Note 9: Employees Benefit Obligation:

I. Defined Contribution Plan

During the year the Company has recognized the following amount in the statement of profit and loss under Employee benefit expense to provident fund under defined contributions plan of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.

II. Defined Benefit Plan

Principal actuarial assumptions at the balance sheet date:

As per the best estimate of the management, no provision is required to be made as per Accounting Standard 29. Provisions, Contingent Liabilities and Contingent Assets as not specified under the Companies (Accounting Standards) Rules, 2006, as amended, in respect of any present obligation as a result of past event that could lead to a probable out flow of resources, which would be required to settle the obligation.

Disclosure in respect of Accounting Standard (AS) 18 “Related Party Disclosures” as notified under the Companies (Accounting Standards) Rules, 2006, as amended:

Names of related parties and description of relationship:

Note 10:

Earnings per Share:

Basic earnings per share are computed by dividing the net profit/(loss) attributable to equity shareholders, for the year by the weighted average number of equity shares outstanding during the year.

Note 11:

Deferred Tax: Incompliance with Accounting Standard 22 (AS22) - Accounting for Taxes on Income, as notified under the Companies (Accounting Standards) Rules, 2006, as amended, the Company has recognized deferred tax Asset (net) in the Profit and Loss account of Rs.2,00,82,417 (Previous year Rs.17,83,319) during the year ended 31st March, 2017.

Note 12:

The company does not see any material foreseeable losses on any long term contracts entered by the company; therefore no provision is required in this respect. Further the Company has not entered in to any foreign exchange derivative instruments during the year under consideration.

Note 13:

The Company commissioned its new unit at Noida (SEZ) for manufacturing of product naming Organotin Heat Stabilisers and PVC Compounds during the 4th Quarter in March, 2017.

Note 14:

Corporate Social Responsibility

The Company is covered u/s 135 of Companies Act 2013, the details of the expenditure on corporate social responsibility activity is as under:

Gross amount required to be spent by the Company during the year: Rs.32,81,792 Amounts spent during the year: Rs.35,30,120

There is no borrowing cost that is attributable to acquisition or development of qualify intangible/intangibles sets, which is to be capitalized till the date they are put to use.