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Company Information

Home » Market » Company Information

Vikas Ecotech Ltd.

Dec 07
12.38 +0.58 (+ 4.92 %)
 
VOLUME : 208504
Prev. Close 11.80
Open Price 11.65
TODAY'S LOW / HIGH
11.20
 
 
 
12.56
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
10.42
 
 
 
48.50
Dec 07
12.45 +0.75 (+ 6.41 %)
 
VOLUME : 1259838
Prev. Close 11.70
Open Price 11.80
TODAY'S LOW / HIGH
11.10
 
 
 
12.70
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
10.40
 
 
 
48.50
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Market Cap. ( ₹ ) 348.48 Cr. P/BV 2.18 Book Value ( ₹ ) 5.71
52 Week High/Low ( ₹ ) 49/10 FV/ML 1/1 P/E(X) 12.18
Bookclosure 28/09/2018 TTM EPS ( ₹ ) 0.75 Div Yield (%) 0.40
DIRECTOR'S REPORT
You can view full text of the latest Director's Report for the company.
Year End :2017-03 

The Members,

Vikas EcoTech Limited

The Directors have pleasure in presenting the 32nd Annual Report on the business and operations of the Company and Audited Statement of Accounts for the year ended 31st March, 2017.

1. DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to Section 134(3) (c) of the Companies Act, 2013, the Directors to the best of their knowledge hereby state and confirm that:

a) The Financial Statements of the Company - comprising of the Balance Sheet as at 31st March, 2017 and the Statement of Profit & Loss for the year ended on that date, have been prepared on a going concern basis;

b) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

c) The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit of the company for that period;

d) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

e) The internal financial controls to be followed by the company were laid down and such internal financial controls were adequate and were operating effectively; and

f) The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

2. FINANCIAL RESULTS

The Company’s financial performance, for the year ended March 31st, 2017 is summarized below:

(Rs. in Lac)

Particulars

2016-2017

2015-2016

Net Sales/Income from Business Operations

37,136.01

30,715.20

Other Income

166.93

483.09

Total Income

37,302.94

31,198.29

Gross Expenditure

30,377.23

25,818.12

Less Interest

1,300.80

1,133.53

Profit before Depreciation

5,624.90

4,246.64

Less Depreciation

426.67

337.07

Profit after depreciation and Interest/Net Profit Before Tax

3,566.20

3,925.68

Less Current Tax

1,450.00

1,324.36

Less Previous year adjustment of Income Tax

0.00

38.46

Less Deferred Tax

(200.82)

(17.83)

Mat Credit Availed

0.00

27.24

Net Profit after Tax

2,317.03

2,553.45

Add Share of Profit from Partnership firm/Minority Interest

0.00

0.00

Profit for the Period

2,317.03

2,553.45

Less Proposed Dividend

139.95

127.11

Less Provision for Dividend Distribution Tax

29.28

25.87

Net Profit after dividend and Tax

2,147.80

2,400.47

Amount transferred to General Reserve

162.19

178.73

Profits carried to Balance Sheet

1,985.61

2,221.74

Earnings per Share (Basic)

0.91

1.00

Earnings per Share (Diluted)

0.91

1.00

There have been no material changes and commitments that have occurred after close of the financial year till the date of this report, which affect the financial position of the Company. Based on the internal financial control framework and compliance systems established in the Company, the work performed by Statutory, Internal, Secretarial Auditors and reviews performed by the management and/or the Audit Committee of the Board, your Board is of the opinion that the Company’s internal financial controls were adequate and working effectively during financial year 2016-17.

DIVIDEND

Your Directors recommend payment of Equity Dividend of Rs.0.05 per equity share of Rs.1 each and such Equity Dividend, upon approval by the Members of the Company at the ensuing Annual General Meeting, shall be payable on the outstanding equity capital as at the Record Date i.e. 21st September, 2017. The outflow on account of equity dividend and the tax on such dividend distribution, based on current paid-up capital of the Company would aggregate to Rs.1,69,23,411.

STATE OF AFFAIRS OF THE COMPANY

During fiscal 2017, your Company witnessed yet another strong year of performance despite the uncertain macro-environment, reflecting the inherent strength of our business portfolio and continued to perform well in domestic markets while expanding our international reach. FY2017 turned out to be an eventful year with the Government’s decision to demonetise high value currency notes during November, 2016. However Indian economy proved to be resilient with GDP growth being marginally impacted despite the high magnitude of the event.

The Company has been expanding its operations both in terms of product base and customer base. We have been trying to capture new markets for our products. The operations of the Company are growing steadily and constant Uttar Pradesh rise in performance of the Company is evident from its promising financial prospects.

The Manufacturing plants of the Company are located in the state of J&K and Rajasthan. This has been done keeping in mind the strategic and locational advantages with regard to availability of raw material and potential for finished goods.

FUTURE OUTLOOK

Taking a step forward with the help of our R&D and new technology efforts, the Company is planning to introduce new products in the market. The Company’s new manufacturing units at Kandla SEZ and at Dahej-N, Industrial Estate, District-Bharuch, Gujarat will cater to the markets in Western & Southern India and exports of speciality compounds and additives.

SUBSIDIARY COMPANIES, JOINT VENTURE AND CONSOLIDATED FINANCIAL STATEMENTS

During the period under review the Company does not have any Subsidiary or Joint Venture Company.

CORPORATE GOVERNANCE AND POLICIES

In order to maximise shareholder value on a sustained basis, your Company has been constantly reassessing and benchmarking itself with well-established Corporate Governance practices besides strictly complying with the requirements of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirement) Regulations, 2015 (‘Listing Regulations’) and applicable provisions of Companies Act, 2013. In terms of Schedule V of Listing Regulations, a detailed report on Corporate Governance along with Compliance Certificate issued by the Statutory Auditors of the Company is attached and forms an integral part of this Annual Report. Management Discussion and Analysis Report as per Listing Regulations are presented in separate sections forming part of the Annual Report.

In compliance with the requirements of Companies Act, 2013 and Listing Regulations, your Board has approved various Policies including Code of Conduct for Directors & Senior Management, Material Subsidiary Policy, Insider Trading Code, Document Preservation Policy, Material Event Determination and Disclosure Policy, Fair Disclosure Policy, Corporate Social Responsibility Policy, Whistle Blower and Vigil Mechanism Policy, Related Party Transaction Policy, Remuneration Policy. All these policies and codes have been uploaded on Company’s corporate website www.vikasecotech.com.

Additionally, Directors Familiarisation Program and Terms and Conditions for appointment of Independent Directors can be viewed on Company’s corporate website www.vikasecotech.com. In compliance with the requirements of Section 178 of the Companies Act, 2013, the Nomination & Remuneration Committee of your Board had fixed various criteria for nominating a person on the Board which inter alia include desired size and composition of the Board, age limits, qualification/experience, areas of expertise and independence of individual.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company has duly constituted a Committee under the nomenclature of Corporate Social Responsibility Committee consisting of majority of non-executive Independent Directors. The Committee has developed Company’s Corporate Social Responsibility Policy and is monitoring implementation of the same. The CSR Committee reports to the Board of Directors. The said CSR policy of the Company is also posted on the Website of the Company at www.vikasecotech.com.

During the year under review, the Company undertook CSR initiative for cause of Education through the “Maharaja Agrasen Technical Society (Regd.)” and ‘35,30,120 were allocated and spent for the said cause of promoting education and specially skill education in the country are the areas Company is presently focusing.

The Annual Report on Company’s CSR activities is attached to this report.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT

On March 31, 2017, company’s newly opened Polypropylene manufacturing plant was destroyed in a fire that engulfed this particular section of company’s manufacturing facility in Shahjahanpur, Rajasthan. Due to fire ‘16 crores approx. value of stock, plant & machinery along with building was destroyed. All the plants, stocks, machinery were fully insured and the Company has successfully filed and lodged the claim with insurance company.

The Company has decided to demerge the High Volume Recycled compounds and Trading Division of the Company into Vikas Multicorp Limited.

No other material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which this financial statements relate and the date of this Report.

DETAILS OF DIRECTORS OR KEY MANAGERIAL PERSONNEL INCLUDING THOSE WHO WERE APPOINTED OR HAVE RESIGNED DURING THE YEAR

Your Board currently comprises of 9 Directors including 6 Independent Directors, 3 Executive Directors. Independent Directors provide their declarations both at the time of appointment and annually, confirming that they meet the criteria of independence as prescribed under Companies Act, 2013 and Listing Regulations. During FY 2016-17 your Board met 6 (six) times, details of which are available in the Corporate Governance Report annexed to this report.

Persuant to the members’ approval at the 31st Annual General Meeting of the Company held on 30th September, 2016, Mr. Vikas Garg was appointed as Managing Director for 5 years and Mr. Vivek Garg was appointed as Whole-time Director for a period of 5 years.

Pursuant to the provisions of Section 152 of the Companies Act, 2013, Shri Ashutosh Kumar Verma, Whole-time Director, is due to retire by rotation at the ensuing Annual General Meeting, and being eligible, offers himself for re-appointment. Your Board recommends his re-appointment.

The details of Director being recommended for re-appointment as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are contained in the accompanying Notice convening the ensuing Annual General Meeting of the Company.

During the period under review, Mr. Pankaj Kumar Gupta has resigned as CFO and Mrs. Anjavi Pandya was appointed as Chief Finance Officer of the Company w.e.f. 27th October, 2016.

In compliance with the requirements of Section 203 of the Companies Act, 2013, Mr. Vikas Garg, Managing Director, Mr. Vivek Garg, Whole-time Director, Mr. Ashutosh Kumar Verma, Whole-time Director & CEO, Mrs. Anjavi Pandya, Chief Finance Officer and Mr Siddharth Agrawal Compliance Officer & Company Secretary of the Company continue as Key Managerial Personnel of the Company.

BOARD EVALUATION

The Independent Directors of your Company, in a separate meeting held without presence of other Directors and management evaluated performance of the Chairman, Managing Director and other Non-Independent Directors along with performance of the Board/Board Committees based on various criteria recommended by Nomination & Remuneration Committee. A report on such evaluation done by Independent Directors was taken on record by the Board and further your Board, in compliance with requirements of Companies Act, 2013, evaluated performance of all Independent Directors based on various parameters including attendance, contribution etc.

BOARD COMMITTEES

ln compliance with the requirements of the Companies Act, 2013 and Listing Regulations, your Board had constituted various Board Committees including an Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee and Corporate Social Responsibility Committee. Details of the constitution of these Committees, which are in accordance with the regulatory requirements, have been uploaded on the website of the Company viz. www.vikasecotech.com. Details of the scope, constitution, terms of reference, number of meetings held during the year under review along with attendance of Committee Members therein form part of the Corporate Governance section on the website.

AUDITORS

Statutory Audit: As per Section 139 of the Companies Act, 2013 and based on the recommendations of the Audit Committee and upon review of confirmations of satisfaction of criteria as specified in Section 141 of the Companies Act, 2013 read with Rule 4 of Companies (Audit & Auditors) Rules, 2014 and in accordance with the approval accorded by the Members at the 31st Annual General Meeting held on 30th September, 2016, M/S. KSMC & Associates, Chartered Accountants, New Delhi, having Firm Registration No. 003565N, appointed as Statutory auditor for a period of five years in place of RSPH & Associates. Your Board places on record their appreciation for the services provided by M/S. RSPH & Associates, Chartered Accountants, as Statutory Auditors of the Company for over past years.

Secretarial Audit: During the year, Secretarial Audit was carried out by M/S. AAA & Associates, Company Secretaries in compliance with Section 204 of the Companies Act, 2013.

The report of M/S. KSMC & Associates, Chartered Accountants as Statutory Auditor and M/S. AAA & Associates, Company Secretaries as Secretarial Auditor forming part of this Annual report do not contain any qualification, reservation or adverse remarks. During the year under review the Statutory Auditors had not reported any matter under Section 143 (12) of the Act and therefore no detail is required to be disclosed under Section 134 (3) of the Act.

Cost Audit: Additionally, in compliance with the requirements of Section 148 of the Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014, as amended, M/S. Niraj Kumar Vishwakarma & Associates, Cost Accountants, was engaged to carry out Audit of Cost Records of the Company during Financial Year 2016-17. Requisite proposal seeking ratification of remuneration payable to the Cost Auditor for FY 2016-17 by the Members as per Rule 14 of Companies (Audit and Auditors) Rules, 2014, forms part of the Notice of Annual General Meeting.

DISCLOSURES

I. Particulars of loans, guarantees and investments:- During the financial year ended for the FY 2016-17, no Loans, Investment or guarantee u/s 186 of the Companies Act, 2013 were made by the Company.

II. Transactions with Related Parties- All contracts/arrangements/transactions entered by the Company during the financial year with related parties were on an arm’s length basis, in the ordinary course of business and in compliance with the applicable provisions of the Companies Act, 2013 and Listing Regulations. During FY 2016-17, there are no materially significant Related Party Transactions by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. All related party transactions are placed before the Audit Committee for its approval and statement of all related party transactions is placed before the Audit Committee for its review on a quarterly basis, specifying the nature, value and terms and conditions of the transactions along with arms-length justification. During the year under review, there have been no materially significant related party transactions as defined under Section 188 of the Act and Regulations 23 the Listing Regulations and accordingly no transactions are required to be reported in Form AOC-2 as per Section 188 of the Companies Act, 2013.

III. Internal Financial Controls and their adequacy: Your Company has approved internal financial controls and policies/procedures to be adopted by the Company for orderly and efficient conduct of the business including safeguarding of assets, prevention and detection of frauds and errors, ensuring accuracy and completeness of the accounting records and the timely preparation of reliable financial information. The Audit Committee evaluates the internal financial control system periodically and at the end of each financial year.

IV. Deposits & Unclaimed Dividend: Your Company has not accepted any public deposit under Chapter V of the Companies Act, 2013. During the year under review, the Company has not transferred any amount in Investor Education and Protection Fund.

V. Extract of Annual Return: The extract of Annual Return in Form MGT-9 as required under Section 92(3) of the Companies Act, 2013 read with Companies (Management & Administration) Rules, 2014 is annexed to this report.

VI. Sexual Harassment: The Company has zero tolerance for sexual harassment at workplace and has adopted a Policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder. During the year under review one complaint relating to sexual harassment was received by the Company and the same is under investigation.

VII. Regulatory Orders: No significant or material orders were passed by the regulators or courts or tribunals which impact the going concern status and Company’s operations in future.

CREDIT RATINGS

During the year under review Brickwork Ratings India Private Limited, A SEBI, RBI & NSIC registered credit rating agency in India, upgraded the company’s rating to BBB from BBB- for Long-term bank facilities. The upgraded ratings showcase the company’s improved and strong fundamentals across finance, operations and governance parameters. The company has been continuously working to ensure better performance in terms of financial parameters as also garnering higher market share.

Dun & Bradstreet, a US based information and business rating MNC has upgraded the company’s rating to 5A2 from the previous 4A3, due to improved performance and business metrics.

Crisil, a S& P Global Company has rated the bank facilities of Company has assigned CRISIL BBB for company’s Long-Term Borrowings & CRISIL A3 for the Short-Term Borrowings with stable outlook.

The ratings indicate company’s comfortable financial risk profile and are in line with Company’s strategy of profitable growth and improvement in quality of its financial parameters through better operational performance. The rating reinforces company’s practice for financial transparency and reporting.

The new ratings will help all stakeholders especially financial institutions appreciate the bettered credit quality of the company. In turn, the company going forward will be able to access debt and capital at more efficient terms for its various growth initiatives.

ENVIRONMENT, HEALTH AND SAFETY

The Company is continuously working towards laying a strong foundation and creating a sustainable future for our organization, our people and the society as a whole. Here, Environment Health and Safety (EHS) management is a key pillar of our sustainable growth agenda. We are committed to lead and excel in all aspects of environmental stewardship, safety, health and social responsibility, always striving to provide safe and healthy work environment to our employees and efficient, safe and environmentally responsible products to our customers. Your Company’s primary focus in this regard is on product innovation, developing safe and efficient products which are environmentally friendly, i.e. energy-efficient, safer to use, using non-toxic/eco-friendly raw-materials, having long use life and those can be safely disposed and dismantled at the end of their use life. Further, we are actively working towards improving the EHS systems and practices within our operations. From environment aspect, our efforts are directed towards resource conservation and efficiency within our operations. We have initiated an energy conservation drive within our plants with the objective of monitoring our energy consumption at micro-level, benchmarking our performance and implementing solutions for continuous improvements.

RESEARCH & DEVELOPMENT

With the objective of enhancing in-house R&D capability, the Company is investing in world class infrastructure and test laboratories at all plant locations. The company has strong focus on in-house research & development and promotes culture for innovation. Company’s CRI (Centre for Research and Innovation) team focuses on continuous and sustainable product innovations, working across the product lifecycle aspects including design, development, manufacturing and use phases. During the year, the R&D activities continued to focus on developing intelligent, eco-friendly and energy efficient products, as well as, extending the range of existing products.

LISTING OF SECURITIES

The shares of the Company are listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).

CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION

Energy Conservation measures taken, Steps taken for utilizing alternate source of energy, Capital investment on energy conservation equipment:

The Company has professionally designed & maintained Power factor Panels.

These are specifically designed panels ensuring optimum use of the electricity being consumed at our factories.

The power factor calculations on our electricity consumption calculations show that VEL is nearing perfect results in getting the best output from the electrical energy consumed in the plants.

VEL closely monitors the throughput of all the machines to ensure that every part of the electrical energy consumed is justified with nearly nil wastage of energy.

Proper production planning also contributes positively to avoid wastage of electrical energy & optimum outputs.

Water conservation, Water extraction, storage, desalinization (softening hard water, filtration for further use in process) also involve a considerable consumptions of electrical energy.

VEL plants have the rainwater harvesting systems in place which not only help conserve water but also the electrical energy involved in extraction of the volume of water thus collected.

The Company shall continue its endeavor to improve energy conservation and utilization.

TECHNOLOGY ABSORPTION

1) Efforts made in technology absorption & Benefits derived:

Major initiatives are being taken to upgrade the various processes by making use of latest and better techniques. Efforts are being made to make best use of available infrastructure and at the same time importing new technology to bring out efficiency and economy. As a step towards it, the Company has procured highly sophisticated machinery for its newly set up plant at Shahjahanpur, Rajasthan, for commencing production of an additional range of Polymer Additives.

Research & Development (R & D)

a) Specific Areas in which R & D carried out by the Company: During the year, the Company has inclined its efforts in the development of its production efficiency by improving its methods and technology.

b) Benefits derived as a result of above R & D: Increase in market share.

c) Future Plan of Action/Expansions Plans: As the relevant industry is gearing up to cater to the growing demand, Vikas EcoTech Limited, is all set to expand their business in a big way in the coming years.

With a host of expansion plans, the Company is confident of achieving new heights in the coming years.

2) Imported Technology (imported during last 3 years reckoned from beginning of the financial year)

None.

3) Expenditure incurred on Research and Development (R&D)

The Company has incurred a total expenditure of Rs.4.32 lacs (including capital and revenue expenses) towards Research and Development.

FOREIGN EXCHANGE, EARNINGS AND OUTGO

During the Financial Year 2016-17 the Company had foreign exchange earnings of Rs.1,86,30,76,248 and outgo of Rs.59,49,71,924.

Acknowledgement

The Board places on record its appreciation for the continued co-operation and support extended to the Company by customers, vendors, regulators, banks, financial institutions, rating agencies, stock exchanges and depositories, auditors, legal advisors, consultants, business associates and all the employees with whose help, cooperation and hard work the Company is able to achieve the results. The Board deeply acknowledges the trust and confidence placed by the consumers of the Company and all its shareholders.

Sumer Chand Tayal Vikas Garg

(Director) (Managing Director)

DIN: 00255661 DIN: 00255413

Place: New Delhi

Date: August 11, 2017